02 forward-looking statements

Forward-looking statements

In this Annual Report, we have disclosed forward-looking information to enable investors to fully appreciate our prospects and
take informed investment decisions. This report and other statement - written and oral - that we periodically make, contain
forward-looking statements that set our anticipated results based on management plans and assumptions.

We have tried, where possible, to identify such statements by using words such as ‘anticipate’, ‘expect’, ‘project’, ‘intend’, ‘plan’,
‘believe’, and words of similar substance in connection with any discussion of future performance.

We cannot, of course, guarantee that these forward-looking statements will be realised, although we believe we have been
prudent in our assumptions. Achievement of results is subject to risks, uncertainties, and potentially inaccurate assumptions.
Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected.Readers should bear this in mind.

We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future
events or otherwise.

Vikas Ecotech Annual Report 2015-16

 contents 03

Contents

Vikas Ecotech at
a glance 04
Financial Highlights
06

Board of Directors
11

Message from the MD

12
Management
Discussion & Analysis 19
Financial Reports &
Statements 39

Vikas Ecotech Annual Report 2015-16

 04 vikas ecotech at a glance

Vikas Ecotech at a glance

EMERGING STRONGER FROM

AN IMPORTANT METAMORPHOSIS

A new Vikas Ecotech

leveraging green chemistry for safe and eco-friendly products.

A continued focus on R&D

harnessing innovation for sustainability.

A sharp strategy
powering robust financial growth.

All steer us in one common direction

towards becoming a global specialty chemicals leader.

Vikas Ecotech Annual Report 2015-16

 vikas ecotech at a glance 05

Expanding our Geographical Reach

20+ COUNTRIES
ACROSS 4 CONTINENTS

Delivering High Performance

REVENUE GROWTH
AT A CAGR OF 34.5%

Driving Robust Exports

Increase in exports
at A CAGR of 126.7%

Vikas Ecotech Annual Report 2015-16

 06 financial highlights

Financial highlights

Net Revenue (` in crore) PAT (` in crore)

172 215 312 3 4 26

2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

EBIDTA (` in crore) Exports (` in crore)

13 21 54 29 76 149

2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

Vikas Ecotech Annual Report 2015-16

 financial RATIOS 07

Key financial ratios

EBIDTA margin (%) PAT margin (%)

7.5% 9.6% 17.2% 1.8% 1.8% 8.2%

2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

Return on Equity (%) Debt Equity Ratio

7.3% 8.7% 38.5% 1.05 1.56 1.41

2013-14 2014-15 2015-16

2013-14 2014-15 2015-16

Vikas Ecotech Annual Report 2015-16

 08 COMPANY INFORMATION

Company information
KEY MANAGERIAL PERSONNEL REGISTERED OFFICE BOARD COMMITTEES & ITS
Mr. Vikas Garg, Managing Director Vikas Apartments, 34/1, COMPOSITION
Mr. Vivek Garg, Whole-Time Director East Punjabi Bagh, AUDIT COMMITTEE
Mr. Ashutosh Kumar Verma, New Delhi-110026. Mr. Sumer Chand Tayal | Chairman
CEO & Whole-Time Director Email: [email protected] Mr. Manoj Singhal | Member
Mr. Pankaj Kumar Gupta, Website: www.vikasecotech.com Mr. Purushottam Dass Bhoot | Member
Chief Financial Officer
EXECUTIVE COMMITTEE
Mr. Siddharth Agrawal, MANUFACTURING PLANTS
Mr. Vikas Garg | Chairman
Company Secretary JAMMU & KASHMIR
Mr. Vivek Garg | Member
Industrial Growth Centre,
Mr. Ashutosh Kumar Verma | Member
NON-EXECUTIVE & INDEPENDENT Phase-I, SIDCO Complex
DIRECTORS Dist. Samba-184121, Jammu & Kashmir.
STAKEHOLDERS RELATIONSHIP
Mr. Purushottam Dass Bhoot COMMITTEE
Mr. Pradip Kumar Banerji RAJASTHAN Mr. Sumer Chand Tayal | Chairman
Mr. Jagdish Capoor G-24-30, Vigyan Nagar, Mr. Vivek Garg | Member
Mr. Sumer Chand Tayal RIICO Industrial Area, Shahjahanpur, Mr. Vikas Garg | Member
Mr. Manoj Singhal Dist, Alwar-301706, Rajasthan.
Mrs. Vibha Mahajan (Women Director) NOMINATION AND REMUNERATION
REGISTRAR & SHARE TRANSFER COMMITTEE
STATUTORY AUDITORS AGENT Mr. Sumer Chand Tayal | Chairman
M/s RSPH & Associates Alankit Assignments Limited Mr. Purushottam Dass Bhoot | Member
906, Vikram Tower, 16, 4E/2, Alankit House, Mr. Manoj Singhal | Member
Rajendra Place, New Delhi-110008. Jhandewalan Extension,
Delhi -110055. EQUITY WARRANT COMMITTEE
Mr. Manoj Singhal | Chairman
COST AUDITORS
Mr. Sumer Chand Tayal | Member
M/s Niraj Kumar Vishwakarma &
Mr. Purushottam Dass Bhoot | Member
Associates
SH. 13/124, Tarna Bazar,
COMPENSATION COMMITTEE
Shivpur, Varanasi,
Mr. Manoj Singhal |Chairman
(UP)-221003.
Mr. Sumer Chand Tayal | Member
Mr. Vikas Garg | Member
SECRETARIAL AUDITORS
M/s AAA & Associates CORPORATE SOCIAL RESPONSIBILITY
105, C-2/4 Pragati Market, COMMITTEE
Ashok Vihar Phase II, Mr. Purushottam Dass Bhoot | Chairman
New Delhi-110052. Mr. Sumer Chand Tayal | Member
Mr. Vikas Garg | Member
INTERNAL AUDITORS
M/s Pandey Amit & Associates
B-1399, Shastri Nagar,
New Delhi-110052.

Vikas Ecotech Annual Report 2015-16

 OUR ADVANTAGE 09

The Vikas Ecotech Strategic Advantage

R&D Advantage 1
• In-house MTM technology
• Only company in India to have this know-how
• Specialized, highly technical production process
• Less competition, barrier for entry for new players

MANUFACTURING
2 Advantage
3 • Consolidated manufacturing
around a single plant
Cost • Economies of scale

Advantage
• Savings in input costs from usage of recycled PVC
• Increased profitability
• Environment-friendly

4
One-stop solutions
for clients
• B2B customers get stabilizers, plasticizers, compounds
US FDA and additives from a single vendor

Compliant • Selling price is lower than competition

• Efficacy & strength is more than competition
Environment-friendly
operations in plants
& facilities

Selecting safe-use, futuristic &

environment-friendly products

Vikas Ecotech Annual Report 2015-16

 10 history & timelines

History & Timelines

2016 Founded in 1984, Vikas Ecotech’s history is

• Commenced construction of
state of the art manufacturing rooted in transformation through science
plant and Innovation (R&D)
Center at Dahej, Gujarat
and innovation. Moving away from trading to
• Capacity to produce 6,000 manufacturing of high-end specialty chemicals,
MT of Organotin stabilisers
(MTM) and 5,000 MT of special The Company’s manufacturing division has grown
polymer compounds annually
more than 500% in the past few years. Today, the
company is a leading player in specialty chemicals
2015 exporting products to over 20 countries.
• Added facility to manufacture
Organotin Stabilizers in Rajasthan
• Rebranded the company as Vikas
Ecotech Ltd. with a focus on
eco-friendly specialty chemicals
• Upgraded to 2 Star Export house status

2014
• Offered ESOP to its employees
• Issued Bonus Shares in the ratio 3:2 to all its shareholders
• Received Star Export house status
2011
2009 • Established the export division
• Vikas Garg took over as Managing Director
Commissioned production facility to • Ranked as India’s fastest growing
manufacture Bio Plasticiser mid-sized company by Inc. 500

2008
• Backward integration into manufacturing. Commissioned 2 units in Jammu for TPR Compounds and
Organotin Stabilizers
• Commissioned production facility to manufacture Mineral fillers for Rubbers & Plastics in Rajasthan
• Name changed to Vikas Globalone Ltd

1984 1998
Founded as a Non Banking Finance 1995 Started trading and distribution
of petrochemical products
Company – Vikas Leasing Listed on BSE & NSE

Vikas Ecotech Annual Report 2015-16

 board of directors 11

Board of Directors

Vikas Garg Vivek Garg Vibha Mahajan

Promoter-Executive & Promoter-Executive & Independent &
Managing Director Whole-time Director Non-Executive Director

Purushottam Dass Bhoot Sumer Chand Tayal Jagadish Capoor

Independent & Independent & Independent &
Non-Executive Director Non-Executive Director Non-Executive Director

Pradip Kumar Banerji Manoj Singhal Ashutosh Verma

Independent & Independent & Whole-time Director & CEO
Non-Executive Director Non-Executive Director

Vikas Ecotech Annual Report 2015-16

 12 message from the md

Message from the MD

custom-made polymer solutions

to address customer challenges,
high value and profitable product
differentiation and commitment to
research and innovation. During the
year under review, we have succeeded
under difficult conditions and our
performance has exceeded the goals
that we had set for ourselves.

Positive headwinds amid global

turmoil
The last year continued to be choppy for
global markets with oil and commodity
prices falling to new lows. While the

With global Dear Shareholders, US and European economies have

registered low or negative growth,
developing, emerging and frontier
manufacturing
Fiscal 2015-16 saw your Company’s
strategic metamorphosis into a new economies have also performed
Vikas Ecotech. This transformation erratically. According to IMF, global

shifting to was essential to reinforce our position

as a science-led specialty chemicals
growth in 2015 is estimated at 3.1
percent and is projected at 3.4

the East, the manufacturer that gives the highest

importance to environmental and
percent for 2016 and 3.6 percent
in 2017. What should worry global

Indian specialty safety issues. During the year, your

Company has not only experienced
businesses is the divergence in growth
rates between various regions due to

chemicals rapid growth, but has achieved it in local or country specific factors.
a responsible and sustainable manner.
Geopolitical uncertainties like the
industry is We are committed to demonstrating
that it is possible to manufacture
British referendum, the economic
sanctions imposed against various

experiencing a high-quality specialty chemical

solutions that are environmentally
countries, and the expansionary
monetary policies adopted by central

‘force multiplier’ friendly and safe to use. At the

same time, we remain true to our
banks in developed countries have
made business dealings uncertain

effect fundamentals: a distinctive strategy

to provide quick turnaround for
across the world. However, developing
and emerging economies today

Vikas Ecotech Annual Report 2015-16

 message from the md 13

account for 70% of global growth. market size is projected to become

This trend is expected to continue, $33.2 billion by 2019. As the per During the past year,
although in a muted manner. The
rebalancing of the Chinese economy
capita consumption of chemicals in
India is much lower than the global
Vikas Ecotech’s
from investment-led growth towards average, the great Indian consumption performance has
consumption and services is causing
great economic upheaval around the
story is waiting to be written in the
specialty chemicals segment. With been exemplary in
world. The two other BRIC economies key end-user industries such as an environment
of Brazil and Russia continue to display agriculture, automobiles, medical
recessionary trends and economic devices and packaging expected to where slow growth is
distress. This leaves India as the only
major economy that is expected to
see robust growth, domestic demand
will grow further. In a market that
being defined as the
exhibit substantial economic growth. largely comprises unorganised players, new normal
large-scale manufacturers like your
India is a star among emerging Company are at a distinct advantage. helped and will continue to achieve
economies profitable and sustainable growth for
The Indian economy has been Moreover, it is expected that there your Company.
successful in insulating itself from will be a significant growth in
the global recession and economic demand as India gains a competitive Our first strategy that has worked
shocks during the last year. A robust advantage over China. Since the last well is our ability to work closely
monetary policy to rein in inflation, year, the Chinese economy has been with customer R&D teams to develop
a newfound political will to hasten undergoing a rebalancing process and specialty chemical solutions much
policy-based decision making and is fast losing its status as the high- ahead of the competition. Today,
the central bank’s ability to discipline end manufacturer to the world. Global our customers while developing new
the banking system have combined companies, especially those who offer products or strengthening the current
to strengthen the fundamentals of science-led solutions require qualified ones intimate our team of the need
the Indian economy. Complementing yet affordable human resources. gap requirements. Our ability to
these measures are initiatives like This factor will lead to a shift in understand the clients’ needs and
‘Make in India, ‘Skill India’ and manufacturing activities to India and come up with scientific solutions in a
‘Digital India’ that will help the your company stands to benefit. fast and effective manner has resulted
Indian economy and its workforce in customer stickiness and our ability
become better equipped to cater to Implementing a growth strategy to command premium prices.
global demand. for market leadership
During the past year, Vikas Ecotech’s The above strategy has helped us
With global manufacturing shifting performance has been exemplary in identify ‘premium customers’ who
to the East, the Indian specialty an environment where slow growth value our R&D and science-led
chemical industry is experiencing a is being defined as the new normal. solutions focus. Going ahead, we will
‘force multiplier’ effect. Our nation While I will mention the financial work with a select set of customers
is fast emerging as a global specialty performance figures later, let me share both in India and abroad to solve
chemicals manufacturing hub – the with you the overall strategy that has their end customer needs in a more

Vikas Ecotech Annual Report 2015-16

 14 message from the md

focused manner. During the year we PVC pipes manufacturers. We are as those produced by competition
have consciously moved away from the only Indian company that has from virgin raw materials. This R&D
customers looking at only a low cost- the scientific know-how to offer this breakthrough is a first by an Indian
led solution from us. Subsequently, solution. This advantage is helping company and we see two key benefits;
we looked at higher revenue from us match global quality standards for one, we are helping the environment
each customer account through our customers across the world while by reducing landfills of waste plastic.
tighter partnerships and associating simultaneously giving us the ability to Second, our raw material costs are
with them through their entire product offer value driven prices. significantly lower while our end
development journey. product selling price is almost equal
With Organotin stabiliser being US to the competition’s product. This
Our second strategy has been to FDA approved, our product in the strategy has helped up improve our
sharpen our R&D focus to develop same category - Tinmate has an margins significantly while benefiting
a robust pipeline of sustainable and immense growth opportunity. Your the customers through a strategic
environmentally friendly specialty company is fast gaining credence and price advantage.
chemical solutions and products. recognition as a global supplier to
Globally and in India, we see the safety-critical healthcare industry Our third strategy is ensuring
definite regulatory and voluntary and medical devices and components geographic and revenue de-risking
action towards phasing out of industries. With new capacity for the company. Today, global and
harmful additives like lead and other enhancements, innovative product country-based volatility is the biggest
toxic materials. Today, one of our formulations and a focus on premium macro challenge for any business
products, Organotin, a popular lead- value-added products, we are forging that has international operations
free alternative additive, is seeing ahead to becoming a leader in the and ambitions. Our export focus is
significant traction both in domestic non-toxic alternatives market. helping ensure that we have a healthy
and export markets, especially among revenue mix from both domestic and
One of the high growth products in international customers. During the
Polymer Additives is flame-retardant year, we have achieved 48.5% of our
Today, our specialty material that finds applications in the sales from global customers. Over the
engineering and construction sectors next 36 months, we expect to generate
chemicals are among others. With the Bureau of an equal amount of revenue from

supplied to markets Indian Standards setting mandatory

requirements for the use of flame-
domestic sales and exports. Today,
our specialty chemicals are supplied
in the EU and retardants in various industries to to markets in the EU and USA where
promote fire safety, our product, they meet the strictest standards of
USA where they V-ECOFLAMEX, will see increased quality and environmental regulations.

meet the strictest demand and contribute to the safety

efforts of our customers. In India, we are focusing on
standards of quality penetrating the Western and Southern
Your Company has maintained an R&D markets with our new plant coming
and environmental focus on using recycled plastic and oil up at Dahej in Gujarat. The state-of-

regulations as raw material to create products

that have equal efficacy and strength
the-art plant and innovation centre
will start initial operations in the

Vikas Ecotech Annual Report 2015-16

 message from the md 15

next fiscal year and contribute to a fully equipped to meet the stringent
200% increase in capacity. This will Our strategy of rules pertaining to the operations
help us service our local customers of our manufacturing plants. As a
in a shorter time and also enable us sweating our assets strategy, we have been investing in
to shorten the timelines for exports.
With our market domination in North
is helping us increase green practices over the last few years
and we stand better placed to reap
India continuing, we hope to create a production without the benefits of the newly introduced
pan-India marketing and distribution government policies.
network in the next few years. a corresponding
Within the country, we have focused
increase in capex while A future driven by intellect,
innovation and invention
our sales efforts in three key markets driving down per-unit Today we live in a world that sees
change on a regular basis due
of North, West and South India. We
export to over 30 countries divided production costs to rapid advances in technology
into 5 clusters (EU, USA, MENA, and science. New products and
South East Asia and African countries). During the year we have concentrated processes disrupt the status quo and
Thus, with over eight clear market on operational efficiencies and threaten incumbents. In India, we are
clusters (domestic and exports) and derived the maximum production witnessing a surge of entrepreneurial
over 33 micro markets, we have ‘ring from our manufacturing assets. activity that promises to lead to
fenced’ our revenues from a sudden Our strategy of sweating our assets the growth of improved business
fall in demand in any one region due is helping us increase production models like e-commerce and the
to macroeconomic factors. without a corresponding increase digitalization of various industries. It
in capex while driving down per-unit is highly likely that your company will
Profitable growth through production costs. Our human resource also have to face these challenges
science-led applications policy has ensured that our safety and we assure you that we are fully
The performance of the current year and health standards match global prepared to do so.
clearly shows that we have delivered levels and that all our manufacturing
profitable growth. This is due to plants meet environment, health and At Vikas Ecotech, we are committed
our increasing focus on an R&D- safety norms. to harnessing our collective intellect
led specialty chemical product and for innovation and continuous
solutions focus. With an experienced We have invested in zero-pollution invention in specialty sciences. With
team of scientists and increased manufacturing equipment and started support and encouragement of all our
spending on R&D, our margins have a practice of using recycled materials stakeholders, we pledge to persevere
improved significantly. to make advanced new formulations. in our efforts to manufacture products
We have also installed facilities that contribute to a safer and greener
Your company delivered a 45% revenue to convert waste cooking oil into tomorrow.
growth of INR 97 crore and achieved specialty additives. Recently, pollution
total revenues of INR 312 crore for control norms have been tightened With best wishes,
the year ending March 31, 2016. Net in India. This is another area where Vikas Garg
profit stood at INR 25.53 crore, an your Company has an edge over the Managing Director
increase of 575% on a Y-o-Y basis. unorganised sector. Vikas Ecotech is

Vikas Ecotech Annual Report 2015-16

 16 global PRESENCE

Global presence

Two Star Export House exporting to

4 Continents
20+ Countries

Vikas Ecotech is a leading

provider of high-end speciality
chemicals to customers across
the world. We are passionate
about finding innovative
solutions to the most pressing
environment and safety
challenges of our times.
We leverage world-leading technology and
chemical science to create value-added
safer alternatives in product applications
across industries.

USA

Vikas Ecotech Annual Report 2015-16

 global PRESENCE 17

Spain Turkey China

Pakistan

Singapore

Germany UAE Sri Lanka

Vikas Ecotech Annual Report 2015-16

 18 building a sustainable world

Building a sustainable world

DISCOVERING, DEVELOPING AND DELIVERING

ON SUSTAINABILITY
Sustainability is central to our strategy, solutions and
social responsibility.

FOCUS AREAS

Safety & Health

Delivering products safely and responsibly
Enabling community and social impact

Environmental Stewardship
Doing what is right for the environment
Zero-pollution manufacturing to manage climate change

Corporate Citizenship
Corporate governance, transparency and disclosures
Enabling customers across the value chain drive sustainability

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 19

Management Discussion and Analysis

MacroEconomic
Overview

T he year 2015 started

ended on a tepid and uneven
note. While global indices showed
and albeit in a recalibrated and slow
manner.
economy in predicting more realistic
and sustainable growth numbers.
However, in the short-run, this will
minimal to negative growth, many China remains a key fulcrum of lead to major trade imbalances
economic pockets bottomed out, global economic recovery. Today it in many local economies. China’s
some contracted and few economies is the world’s largest economy in upheaval is a major opportunity for
grew ahead of the curve. The mixed terms of purchasing power parity and India. For a country with an equally
bag of events in the past year made a dominant trade partner to major big economy, our actual growth
us look at the world in relevant nations. Its strategic yet complex and statistics are in semblance
boroughs. A heartening development transition from a manufacturing to and we enjoy robust banking and
was that most countries implemented a services economy led to global fiscal discipline along with a vibrant
measures to correct and rebalance upheaval resulting in oversupply and democracy. MNCs are looking to set
their economic exuberance in 2015. demand weaknesses. In the long- up 2nd big manufacturing base in
Overall, global recovery continues, term, China’s steps will help the global India after China.

Vikas Ecotech Annual Report 2015-16

 20 management discussion and analysis

Among major developed economies, manufacturing - a trade off for key

European Economics
the US economy has started export economies like India.
performing in 2015 in an
GDP in 2015
unspectacular yet stable fashion. The On the whole, the world continues to

1.5%
US economy is still recovering from behave like a fragile economy where
growth in
the financial effects of 2008. While rare pockets of performance continue
Euro area
local consumption led to increased to exist and grow. Asian economies

1.8%
spending during the year, weak especially China and India continued
in the performance by major US energy to deliver above average GDP growth
EU28 sector players and continued global of 7-8% on the twin handles of
weakness left the American GDP a robust domestic consumption
growth rate at a mere 2.4% for the and export competitiveness from
year, according to data released by value added manufacturing. China
asian Economics the World Bank. However, to build registered its slowest GDP growth in
efficiencies, US businesses will the past 25 years at 6.8% in 2015.
China
increase outsourcing to deliver cost For India, its knowledge-led skilled
Slowest GDP
efficiency and corporate profitability. workforce is an added competitive

6.8%
growth in the
Indian exports to USA especially in advantage, especially on the exports
past 25 years at
value- added and sustainable sectors front. Increased threats of non-
6.8% in 2015
will grow. economic nature continued to create
risk potential to hurt commerce.
India European Union lagged in economic
performance due to political While economic progress remained
GDP growth of
pressures like the EU referendum a challenge, financial markets
7.4% in 2015
and refugee influx. The polity’s in developed economies showed

7.4% and expected

to touch 8%
will to take definite
economic measures has pummeled.
corrective improvement due to Central Bank
measures. Finally, with coordinated
in the coming
Major countries in EU experienced measures to firm up oil and
year
negative to zero growth with commodity prices, 2015 seemed to
industrial production decreasing and be the beginning of a better world

The Indian economy unemployment increasing. The Brexit

effect and political narratives seem to
from the bottom up!

is at a unique cusp overshadow economic realities in the Make in India – The Lion Roars
near term. For statistical purposes, During the year, India roared back
of value creation in 2015 the euro region registered a into the global center-stage both as a

through value 1.5% GDP growth while in the EU28

it was 1.8%. European businesses
political and economic heavyweight.
A new found political energy under
addition continue to look at cost efficiencies the leadership of Prime Minister Shri
by replacing uneconomical Narendra Modi reinstated the faith of

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 21

global investors to invest their money aid India. Thus, India is leveraging
Top destination in the country. Also, several policy its higher productivity to become the
for Foreign Direct measures were unveiled to make value added manufacturing and R&D
Investment (FDI)
India the global manufacturing hub hub to the world.
for value added science, chemical
Top 3 preferred investment
and engineering services. India’s ability to ring-fence itself
destinations
against global financial crises is
With a GDP growth of 7.4% in 2015 commendable. Be it the 2008 crisis
and expected to touch 8% in the or the recent Brexit one, the Indian
coming year, the Indian economy is financial and banking system is
at a unique cusp of value creation able to withstand global upheavals
through value addition. Along with with minimum domestic disruption.
China and other Asian economies like This in turn has ensured local fiscal
USA
China India Vietnam, Bangladesh and Philippines stability and hedging of export
have recently become exporters to risks on thin exchange fluctuations.

$256
the world. Unregulated labor laws, Moreover, the implementation of
outdated industrial practices and GST by the next financial year will
billion environmental compromises counter act as a game changer for organized
balance their low cost and low end industry players.
FDI in projects
manufacturing due to cheap labor.
India China India through its focus on quality In year 2015, India replaced China
& trained manpower, transparent as the top destination for Foreign
policy & regulations and emphasis Direct Investment (FDI) as reported
on R&D has tapped the value added by the Financial Times, garnering
exports market, a trend that is here $63 billion in new FDI projects.
to continue. Liberalization, policy clarity and ease
BRICS countries of doing business has made India one

declined to $256 The Indian economy continues to

display tremendous domestic growth
of the top three preferred investment
destinations for multinational
billion - a 6% decline. potential based on the twin factors enterprises, along with China and
of increased private consumption-led USA. While overall FDI inflows to
India was the only demand and heightened government BRICS countries declined by 6%

notable exception, spending on infrastructure, industry

support (subsidy) and tax reforms.
to $256 billion, India was the only
notable exception. This reaffirms that
re-affirming that it is Unlike other developed economies, India is the only story built on a solid

the only story built on favorable demographics, a young

and educated workforce and a robust
foundation and stands strong among
all the BRICS nations.
a solid foundation central bank with accommodative
yet non-populist monetary policies

Vikas Ecotech Annual Report 2015-16

 22 management discussion and analysis

Specialty Chemicals
An attractive premium
play with an India
Advantage
D ecember 2015 was a defining
moment for the specialty
chemical industry. DuPont and Dow McKinsey & Company
validation of the attractiveness of the
specialty chemicals sector.

Chemicals announced their merger

making a behemoth with a combined
pegs the Indian McKinsey & Company pegs the Indian
specialty chemicals sector to grow
market capitalization of $130 billion specialty chemicals 4-5 times from the current market
with consolidated $83 billion in Sales
and $3 billion of cost synergies.
sector to grow 4-5 size of $25 billion to $80- 100 billion
over next decade. This firms up the
Both these companies in the recent times from the inherent opportunities that lie ahead
past had re-invented their diversified for India’s specialty chemical players.
chemical businesses and re-aligned current market size A highly specialized and science-led,
their portfolios by divesting lower
margin businesses and concentrating
of $22 billion to $80- R&D-oriented approach is the key to
succeed in the market. Customers
on high margin specialty chemicals. 100 billion by 2020 are looking at high value efficacy-led
The merger is seen as a direct market specialty chemical applications that

DuPont and Dow Chemical announced

their merger making a behemoth with The Indian specialty chemicals
a combined market capitalization of
$130 billion with consolidated $83
segment will see increased demand
billion in Sales and as the manufacturing sector gets a
$3 billion of cost
synergies fillip with ‘Make in India’ initiatives

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 23

impart valued-added properties in locally. Standalone Indian specialty companies in environment, health
the end product. At the same time chemical players with cutting- and safety.
reducing input costs and ensuring edge R&D and import substitute
sustainable future best practices equivalent products will see a surge In India, Gujarat and Maharashtra
is key. The same strategy will also in demand. In turn, they will attract have emerged as favored
boost exports. growth investments for strengthening manufacturing destination zones for
R&D, manufacturing and expanding MNC’s, due to friendly government
Indian Government policy to give locally and in global markets. policies and access to both local and
a fillip to manufacturing export markets. With MNC and Indian
India is tweaking its economic policy East is the new West companies setting up local base to
to give a fillip to manufacturing. Till With western economies experiencing manufacture for the Indian consumer
recently, the services sector had demand stagnation and battling and supply to global marketplace,
been driving healthy growth while uneconomical costs of production, Indian specialty chemical companies
manufacturing had stagnated. With the next decade of manufacturing will ride this demand naturally by
the need for specialty chemicals and economic demand consumption aligning to their customer growth
in nearly 80% of manufacturing will have shifted to the East. Be it initiatives. Local players that that have
applications, the Indian specialty automobiles, construction, polymers, good R&D setups and are offering
chemicals segment will see increased agriculture or pharma, specialty import substitutes will get additional
demand as the manufacturing sector chemical players have followed their preference to meet this demand.
gets a fillip with ‘Make in India’ customers to the Asian markets of
initiatives. China and India. China’s inability R&D-led premium solutions – Up
to produce as per global standards the supply chain & technology
With FDI being allowed in most of has led to softening of exports ladder
the sectors, global MNC players benefitting Indian specialty chemical Today, the Indian specialty chemicals
across industries will set up players. Today, Indian players have segment at $25 billion garners an
manufacturing base in India. As a cost advantage of over Chinese abysmal share of 3% of the global
a measure of competitiveness, firms after taking into account the specialty chemicals industry. This
raw material sourcing will be met additional investments by Chinese is due to industry fragmentation,

100% FDI
Today, the Indian specialty chemicals Indian specialty chemical industry
industry at $25 bn garners will contribute 6-7% of the
an abysmal share of 3% of the global global demand by 2023,
being allowed in this sector, specialty almost doubling
increased global investments chemicals its market
will flow to local players along
with MNC’s setting up base
industry 3% share

Vikas Ecotech Annual Report 2015-16

 24 management discussion and analysis

low investments in R&D and most customers in science-based product industry action is being implemented
players targeting local markets. applications. in China and India with a clear hope
With Indian local consumption of new regulations against harmful
driving volumes and moving up the Societal awareness & activism- chemicals that impact both human
value chain, demand for premium led natural demand generation health and the environment being
specialty chemical applications is Sustainable production and put in place soon. Specialty chemical
set to increase. Indian specialty responsible environmental conduct by companies need to align their product
chemical players will contribute businesses are becoming critical. With portfolio with human safety for a
6-7% of the global demand by increased activism and government greener tomorrow. Such companies
2023, almost doubling their market intervention, harmful chemical will see increased demand whilst
share. This will include meeting the applications are being phased out for enjoying reputation and goodwill
current local demand that is being human consumption. The specialty premium from investors, regulators
met through expensive imports. chemical industry has been a torch and industry peers.

The global PVC stabilizer market is expected to reach

By 2020 $ 3.8 billion

The industry is seeing a voluntarily shift
to non-toxic lead free stabilizers

With increased spending on R&D bearer in developing sustainable Vikas Ecotech envisages making eco-
and local demand getting more science-based applications that friendly and sustainable products,
sophisticated, the unorganized replace the harmful chemical effects replacing the harmful chemical
and volume players will be in the product supply chain. effects of traditional additives. Our
separated from high end R&D-led growth will be driven by innovative
organized manufacturers. With For example, the global PVC stabilizer chemical solutions in the areas of
implementation of GST, the unsaid market expected to reach $3.8 billion stabilizers, plasticizers and recycled
price advantage will cease to by 2020 from the current $2.7 materials. Manufacturing products
exist and the unorganized players’ billion has seen volunteerism from that are import replacements will
market share will get transferred industry to shift to non-toxic lead- result in additional business and
to organized players. Essentially, free stabilizers. A complete phase not only saving of precious foreign
Indian specialty chemical players out of lead-based stabilizers driven exchange reserves for the country
will rise up the supply value by the ‘Comprehensive Chemicals but also foreign exchange earning in
chain and technology ladder to Regulation’ (REACH) in Europe Union form of incremental exports.
become strategic partners to their has led this shift. Similar proactive

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 25

Performance - Profitable
Growth, Sustainable
Business focus
3 focus areas
F or the year 2015-16, the company
registered net revenue of `311.98
crore as compared to `214.72 crore
segment, we have identified 3 focus
areas:
• Specialty Additives
Specialty for FY 2014-15, a jump of 45.30%. • Polymer Compounds
Additives PAT stood at `25.53 crore, a steep • Recycled Materials
improvement of 574.47% from
`3.79 crore for the corresponding We achieved superior financial
Plastic period of last year. performance across all quarters by
Compounds focusing on the following operational
The company’s performance is aspects:
remarkable in two aspects. In the
Recycled
immediate terms, we improved Process efficiency: During the year,
materials
on both our topline and bottom- a TQM (Total Quality Management)
line significantly in spite of macro- project was implemented across
challenges. However, what is all our factories. It covered all the
satisfying is that we are able to functions from sourcing to production
PVC is one of the implement a clear strategy for to end sales. The company closed

most durable, cost- sustainable business in the long

term. This reset focuses on large
several inefficiency gaps like material,
manpower and time wastage. This
effective yet smart customer relationships, continued resulted in achieving a lower cost

alternatives to steel operational efficiency and R&D-led

product development. We believe it
per unit of production. Automation
led to energy savings and intelligent
and iron in the will sustain our growth momentum manpower allocation, thereby raising

global infrastructure in the long term. productivity.

and construction During the year and going forward, Superior quality of outstanding

industry
our focus will be on the specialty debt: With our focus shifting from
chemicals business. Within the small to large enterprise customers,

Vikas Ecotech Annual Report 2015-16

 26 management discussion and analysis

Vikas Ecotech is the Our product

only homegrown meets stringent
manufacturer in international
India with an in- norms in USA
house R&D function, and EU countries
manufacturing MTM MTM
our debtor quality has gone up. R&D teams from an early stage of the main ingredients like Tin being
Thus, outstanding debts turning bad product development led to our wasted in the process. Leading
remained insignificant. We upgraded solutions being integrated in the manufacturers of agri and infra PVC
our credit appraisal norms through product development journey from pipes and fittings, medical devices,
the use of predictive analytics, the beginning. medical components and packaging
ensuring that incase of any client’s players are our key customers.
health concern, our system alerts us With oil and other commodity prices
to factor it in our dealings ahead of coming down further, raw material Vikas Ecotech is the only homegrown
others. input cost savings helped our bottom- manufacturer in India with an in-
line driven topline performance. house R&D function, manufacturing
Premium price realization: Our Going ahead, we wish to adhere MTM right from tin metal. Few
in-house R&D-led product and to our strategy of maintaining and other players in the world have such
applications development led to winning through a profitable market technological capability. Organotin
clients paying a premium for our share. or MTM is the only heat stabilizer
solutions. Few of our prime products that can be used for transparent
____________________________
like lead-free eco-friendly Organotin and food-grade PVC applications.
stabilizers are IPR equivalent and
Sector-wise Products
____________________________ It is the strongest stabilizer for PVC
not available with many competitors. (Ca-Zn being the weakest) and is
Only a few large US and European Specialty Additives suitable for critical applications.
MNC specialty chemicals and a Our extensive range of toxin-free, Our Organotin stabilizers are US
some of Chinese players have similar high-performance specialty additives FDA compliant, giving us the ability
solutions. like organotin heat stabilizers to supply all over the world and
(Methyl Tin Mercaptide - MTM), substitute costly imports for Indian
Be it exports or domestic sales, Plasticizers and Flame Retardants manufacturers locally.
customers are looking at scientific saw increased demand during the
applications by which their end year. The MTM production process With the Indian market demand for
product can be bettered. Our focus was reengineered to achieve better Organotin Stabilizers at 6,000 MT
of closely working with customer’s stabilization with a lesser amount of p.a. (growing at 20% CAGR) and

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 27

PVC heat stabiliser market (currently

60,000 MT per annum) and global
specialty additives PVC heat stabiliser market demand
growing continuously, our expansion
Indian market demand plans are in line with domestic and
for Organotin Stabilizers international demands. During the

6,000 MT p.a. current year our market share in

India for Organotin Stabilizers was
approximately 10%. Our vision is to
Growing at

20%
attain 25% share of the expanded
market in the near future.
global market demand at 1,40,000
MT p.a., we see a continued demand The demand for Organotin stabilizers
for our product due to advantages CAGR – lead-free alternative additives – is
that no other player in India currently witnessing a rise both in India as
provides. well as globally. Specialty additive
Global market demand
demand will rise across the world
The nascent Indian market of CPVC due to this unique phenomenon.
(Chlorinated polyvinyl chloride) pipes
1,40,000
Asian countries like India is seeing
and fittings in India is estimated
MT p.a. increased demand for PVC pipes
to grow at more than 100% CAGR due to infrastructure growth and
over the next 2-3 years and is adoption of modern agri-practices.
giving leaders like Vikas Ecotech Continued demand for our product Western economies like the USA and
a distinct advantage. CPVC is a due to advantages that no other EU countries are using PVC pipes to
thermoplastic produced from PVC player in India currently provides. replace their crumbling municipality
resin that is much more flexible and and city infrastructure especially,
has the ability to withstand higher underground pipelines.
temperatures than standard PVC.
It is eco-friendly, corrosion-resistant Plastic Compounds
and has a long service life. CPVC is Vikas Ecotech’s strides as a leading
used in the manufacturing of pipes manufacturer of specialty polymer
for hot & cold water and industrial compounds continued both in the
The nascent CPVC (Chlorinated
liquids. global and Indian market. Today, we
polyvinyl chloride) pipes and
offer one of the most sophisticated
fittings market is estimated to
Organotin is the only heat stabiliser range of differentiated compounds
grow at more than 100% CAGR
used in the manufacture of CPVC like Thermoplastic Rubber (TPR),
pipes & fittings and the dosage is 3
folds in CPVC as compared to UPVC
100% Thermoplastic Elastomer (TPE) and
Speciality compounds of PVC, PET
over next 2-3 years
pipes & fittings. With both the Indian and EVA. Many of the world’s and

Vikas Ecotech Annual Report 2015-16

 28 management discussion and analysis

India’s leading footwear brands today raw material we are able to increase (MTM), the lead-free alternative
use our polymer compounds for our profitability and also reduce the additive, and 5,000MT of specialty
enhancing comfort and longevity in impact on the environment. polymers compounds annually.
shoe soles – a testament of our R&D
capabilities in developing localized Import Substitute Focused The increased capacity will act
customer focused solutions. Manufacturing Excellence as a genuine import substitute for
To ensure stringent quality and a additives and stabilizers across
The company has built a unique ‘near to customer’ strategy, we have industries operating in India, both
competitive advantage by developing commissioned the construction of our MNC and local firms. It will benefit
various innovative technologies in- new state of the art manufacturing customers by time savings due
house. We have a blue membership plant in Dahej SEZ, Gujarat. When to local sourcing, reduce logistics
of SATRA, a UK-based independent complete, it will add a capacity of hassles and ultimately deliver cost
testing and research organization. Our 6,000 MT of Organotin stabilizers savings. India will benefit from
test procedures and manufacturing foreign exchange savings.
processes are SATRA compliant. Our
R&D focus has led us to create few The Innovation Center will act as a
interesting solutions like compounds We have a blue catalyst to the company’s discovery
for soles of snow resistant boots
for the Indian Army through our tie
membership of efforts for chemical molecules. The
plant is strategically located to serve
up with FDDI - Footwear Design & SATRA, a UK- both the domestic markets of West
Development Institute (under the and South India and also, feed our
Ministry of Commerce & Industry, based independent export markets by accessing the sea-
Government of India). Global
Specialty polymers market is showing
testing and research route. Stated for production by early
next year, it will add over 200%
a high growth worldwide with a organisation capacity for the company.
CAGR of 5.9%, our expansion plans
are in line with the huge domestic
and international demand.

Recycled Materials
Our strategy of reusing materials to
make advanced new formulations
has been well received by customers.
With a dual advantage of near-to-
equal virgin efficacy at lesser prices
compared to virgin materials, clients
are appreciating our value driven
R&D approach. By using recycled

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 29

R&D focused
‘incremental innovation’ in current
applications and chemicals is an
effective way to harness our R&D

for a better & efforts. Our customers appreciate

this approach - our R&D efforts are
time based, cost effective and lead

safer tomorrow to significant benefits in deploying

capital efficiently.

One of our key innovations has been

A s a homegrown specialty
chemicals player, our R&D-led
scientific product innovations are
in re-engineering used PVC material
to produce a high performance PVC
compound that matches the quality
the key to our success. From the attributes of virgin PVC. Typically,
initial days, R&D for ‘incremental products made from recycled PVC are
innovation’ has been our mantra in considered to be of lower grade and
solving customer’s problems in an hence command lower prices. We
efficacy-led and value driven manner. have been able to defy this through
Today, we channel a significant ‘intelligent’ chemical application.
part of our revenues and resources This has helped clients benefit from
towards R&D efforts. near-to-equal finished products at
a better price while improving our
Smart innovation, strategic portfolio margins.
focus and superior customer insights
are key in developing Vikas Ecotech’s A PwC report Commitment to the principles of
R&D program in a result-oriented
manner. A PwC reports suggests that
suggests that a circular economy
We believe a ‘circular economy’
about 96% of goods manufactured 96% of goods is key to sustainable development
by industry are somehow touched by
chemistry – a reason why innovation manufactured are and our R&D efforts are bearing
fruit in this direction. Unlike the
is critical for survival.
somehow touched ‘linear economy’ that practices
the take, make and dispose model
Incremental Innovation by chemistry – of production, here, nothing is
As leading specialty chemical majors
across the world have realized,
a reason why wasted and everything is re-used or
recycled. A World Economic Forum
spending on R&D without a focus innovation is critical (WEF) report mentions that over $1
on Returns on Investments (ROI) is
unsustainable in the long run. As for survival trillion annually could be generated
by 2025 globally if companies focus
a growing organization, we believe on building circular supply chains to

Vikas Ecotech Annual Report 2015-16

 30 management discussion and analysis

increase the rate of recycling, reuse clean & green products through an important in effective and optimum
and remanufacture. environment-friendly process and utilization of resources. For us, it
no-pollution facilities. Once scaled has become a key competitive edge
Our R&D team has invented a niche up, it is an opportunity to be tapped. owing to better economics.
chemical process whereby “used
cooking oil” is converted (recycled) At Vikas Ecotech, our R&D efforts Our accelerated R&D strategy will
to a specialty additive. We have been are focused towards creating a more continue to focus on deep diving
successful in developing a sourcing sustainable and less polluting world. into targeted higher value products,
supply chain of used cooking oil for We see a strategic shift in R&D for narrowing our industry choice and
one of India’s largest and reputed specialty chemicals to discover new an accelerated go-to-market strategy
Indian snack manufacturers, technologies for renewable and from the lab to the customer.
Haldirams. This has resulted in reusable product usage. This will be

A merit-driven

Intellect, performance-oriented
workplace is our motto.
Our HR philosophy is built

Innovation & on the below 3 principles:

Invention Professional work

environment
A s a science-oriented organization,
Vikas Ecotech’s people culture
is built on three distinct pillars of
that addresses people issues in a
holistic manner. Having mapped
out the entire career life cycle Dignity and
Intellect, Innovation and Invention!
We understand the distinction
for our employees, it helps us
ensure both professional and
respect for every
between Innovation and Invention. personal growth. We choose every individual
While we focus on incremental employee in a discerning manner
improvements through innovation, and similarly strive to grow him or
we strive towards big inventions in
specialty sciences over a period of
her in a goal-based and humane
manner. During the year cordial
Equal and fair
time. And, to achieve both, intellect
with a scientific temperament is key.
relationships were maintained
in our manufacturing plants and
employment
offices with special attention opportunities
During the year, we continued to to human safety and accident
refine our human resource program prevention.

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 31

A merit-driven performance-oriented technologists, engineers, marketing Reward (to retain): Our HR

workplace is our motto. Our HR & sales professionals and the evaluation process is merit oriented
philosophy is built on the below 3 workforce at manufacturing plants. and regularly Rewards performance.
principles: We believe ideas for innovation can In a disruptive world, where
• Professional work environment come from anywhere. Thus, we have talent is scarce and opportunities
• Dignity and respect for every implemented an organization-wide galore, we believe in retaining our
individual and ‘ideation’ culture where employees talent by giving them challenging
• Equal and fair employment are encouraged to come up with opportunities, handholding them for
opportunities ideas for betterment. During the success and sharing rewards in a
year, various process improvements fair manner.
To keep pace with the Sector’s and suggested by employees, helped
Vikas Ecotech’s exponential growth, in time and cost reduction, saving Respect: As a science-based
we are aware of the leadership significant resources. organization, our scientists are
bandwidth that needs to be built involved in various experiments and
across the organization. Thus, we Recognize (recruit): Our recruitment discovery. We have learnt to Respect
aim to recruit, train and grow leaders process is today scientifically oriented the IPR-driven culture whereby we
for tomorrow. As a future ready to Recognize the best talent both with give credit for scientific innovations
organization, we are building a strong professional and human skill sets. We to individual scientists. This has
second level of managers who are believe superior professional talent helped us attract and retain few of
ready to lead various functions across without an inquisitive mind, a strong the best intellectual minds in the
the organization tomorrow. A key goal moral and ethical foundation is of industry.
during the year has been to create an little use. Hence, we recruit people
organization with a clear-cut talent who have excelled in academic and Going ahead, a key competitive
acquisition strategy. professional fields yet demonstrate edge of your company will be its
uncompromising character traits for people!
Today, our people comprise of a doing the right things in the right
healthy mix of scientists, chemical manner.

Our PEOPLE comprise of a healthy mix of scientists, chemiCAl technologists, engineers,

marketing & sales professionals and the workforce at manufacturing plants

Scientists Chemical Engineers Marketing & Workforce

technologists sales professionals

Vikas Ecotech Annual Report 2015-16

 32 lead - the silent killer

Lead - The silent killer

NURTURING RESPONSIBLE
INNOVATION TO ENSURE SAFETY

With lead exposure causing

! 600,000
Pb cases of intellectual disabilities.

Every year, we are committed to

help people live safer lives and
bring to customers products
they can trust.

Vikas Ecotech has taken the lead in manufacturing safe,

eco-friendly alternatives to toxic lead-based stabilizers
to curb the contamination of water although current
domestic regulations enable their use.

Such progressive stances combined with our responsible innovation process

enable global customers to be confident of the high-quality, performance and
safety of our products.

Vikas Ecotech Annual Report 2015-16

 sustainable lead replacement 33

Sustainable lead replacement

A TIDAL WAVE PHASING OUT LEAD GLOBALLY

Northern Europe
Switched completely to alternative stabilizers
driven by legislations and market pressure

EU
Lead stabilizers’ Phase Out 1
completed in 2015

EU-15
Lead stabilizer consumption in
2000-2011 decreased by 81%

United South
Kingdom America
Permission to use Large processors
lead in potable have been switching
water pipes expired voluntarily
in 2003

Vikas Ecotech Annual Report 2015-16

 34 management discussion and analysis

Mitigation of Risks
& Concerns
O nly 12.2% (61) of Fortune 500
companies of 1955 still appear
in the same list for 2014 – six decades
to India, with similar effectiveness
yet cost benefit to customers.
we are addressing
challenges in 4 key areas
for staying relevant and
later the rest 88% have either gone We will continue to develop and competitive
bankrupt, merged or faded away. discover superior products from our
3D (Technological) Disruption, chemical applications by investing
(Changing) Demographics and continually in R&D. Going ahead,
(Newer) Demand have created a we look forward to legally protecting
world that is more risky and more our inventions through IPR-driven
rewarding than ever. Leaders need to programs and letting industry use R&D-led Product
be better prepared, well heeded and our technology with a patent-centric Development
innovation driven. At Vikas Ecotech, approach.
other than regular risk management
programs, we are addressing Business Continuity Planning:
challenges in 4 key areas for staying Non-economic risks like natural
relevant and competitive. calamities, acts of terror or local
community challenges often lead
Business Continuity
R&D-led Product Development: to stoppage of work. At Vikas Planning
A key reason science-based Ecotech, our three manufacturing
companies face peril is product plants across North and West India
or technology obsolescence. We will mirror each other in production
believe our in-house R&D skills and capabilities. Thus, any risk will be
product development capabilities quarantined at a local level while the Customer & Segment
are a key strategic advantage other plant continues unhindered Diversity
for the company’s growth and production for our customers.
market leadership. Today, some
of our chemical applications and A focus on implementing IT-based
products are IPR-equivalent and MIS across the company ensures
meet stringent regulatory norms of real-time monitoring of every
developed countries of EU and USA. situation and immediate exception
Geographic De-risking
Our products act as genuine import handling. Technology aided by (Domestic & Exports)
substitutes that were being imported geographic separation will ensure

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 35

strategic business continuity at your we go deeper with our scientific

Vikas EcoTech has identified
company. innovations in the current ones.
9 key sectors that would
drive growth for its
specialty chemical business Customer & Segment Diversity: Geographic De-risking (Domestic &
Today, Vikas Ecotech has identified 9 Exports):

Agriculture key sectors that would drive growth During the current year, the mix of
for its specialty chemical business. domestic and export revenues stood at
They are Agriculture, Automobile, `158.18 crores and `148.97 crores
Automobile
Wires & Cables, Organic & Inorganic respectively, a share of 51.50:48.50.
Chemicals, Polymers, Heathcare At Vikas Ecotech, we have rolled out
Wires & Cables industry, Packaging, Artificial a clear marketing and brand strategy
Leather and Footwear. This sector to address demand through a ‘micro
diversity will ensure that any demand markets’ approach. We believe in the
Organic & Inorganic
contraction or technology-led change near future, macro data will look slow
Chemicals
does not affect your company in a and grim while ‘pockets of excellence’
severe manner. drive growth and profitability. We have
Polymers a clear strategy for both our domestic
Secondly, we have rolled out a market and exports market whereby
customer acquisition strategy of we identify, serve and win in our own
Healthcare Industry
owning large B2B customer accounts. ‘micro markets’.
This will help us engage with a few
Packaging large customers in depth rather than In India, we are building a robust
spreading us thin across multiple sales and dealer network across the

Artificial Leather retail buyers. B2B customers can three key demand markets of North,
now get stabilizers, plasticizers, West and South India. Our three
compounds and additives from a manufacturing plants are strategically
Footwear single one-stop solutions partner – a located to employ a ‘near to customer’
value proposition that is difficult to approach. We want to be near to our
During the current year, replicate. However, we will ensure customer’s manufacturing facilities

the mix of domestic that no single customer impacts more

than 10% of the total revenues.
and drive a ‘just in time’ efficiency.
With India being divided into 3
and export revenues aggressive markets and 1 (East India)
While each of the above are growth developing market, we are growing a
stood at `158.18 crores sectors both in domestic and global healthy client base that is well spread
and `148.97 crores demand, our aim is that each sector out across the regions and the 9
should contribute not more than 10- sectors that we address.
respectively, a share of 15% of the total revenues. We will
51.50:48.50. continue to look for newer growth During the year, our exports touched a
sectors to spread our offerings while total of 30 countries across USA, EU,

Vikas Ecotech Annual Report 2015-16

 36 management discussion and analysis

MENA, South East Asia and African act of the company and its team Outlook – Responsible Growth for
regions. These 5 clusters are our key should live up to global standards of a Safer and Healthier Tomorrow
focus. Within each cluster, we want a propriety and goodness. As mentioned earlier, the specialty
single country to contribute not more chemicals sector, especially
than 10-15% of revenue and in each Robust internal control systems organized Indian players will
country, we want no single customer with due intervention of Information continue to deliver profitable growth
with revenue of more than 5-10%. Technology and plant automation both in local and international
through ERP is being implemented markets. We foresee the below
Currently, we are entering newer during the year. A best in class macroeconomic developments to act
markets and are in a growth phase. Business Intelligence (BI) software as a force multiplier for the Indian
The above metrics will fall in place is being deployed to harness the specialty chemicals industry.
once we mature our presence in benefits of big data and analytics for
the 9 ‘micro markets’ that we have business reporting, trend analysis Demand shift to eco-friendly
identified. Thus, our strategic intent is and exception handling. specialty chemical solutions in
to de-risk and meet the above goals. India
We are securing data through a Developed economies have already
Internal Control Systems– matrix method of information flow realized the net effect of harmful
Growth through Governance that will ensure critical information specialty chemical applications in
Today, Vikas Ecotech has embarked like intellectual property and end products of human use. It is
on a journey to become a true product innovation is dispersed in being realized even by developing
homegrown MNC. We are aware that a segmented and layered manner. countries like India and China. Like
as we expand ourselves globally, Security measures for data trail, theft Europe and USA, we foresee major
governance will play a key role in our and misuse are being implemented sectors like PVC pipes to artificial
growth. Predictability of Revenues, at the organization level. Regular leather manufacturers shift to toxin-
Transparency of Conduct, and statutory and voluntary audit free eco-friendly stabilizers and
Regard for Reputation are the pillars mechanisms are ensuring adherence compounds on a regulation-led
of our Governance approach. Every to the above on a regular basis. or voluntary basis. This shift will

Pillars of our Governance approach

Predictability Transparency Regard for

of Revenues of Conduct Reputation

Vikas Ecotech Annual Report 2015-16

 management discussion and analysis 37

create an automatic demand for Global Safety Norms for specialty chemicals sector has been
Vikas Ecotech’s lead-free Organotin World-class “Make in India” hit overnight. Local unorganized
stabilizer Tinmate as no other player Infrastructure players have vanished. After
in Asia currently has this proprietary The Indian government is spending implementing new environmental
green technology. significantly in upgrading the investments, reports suggest,
country’s infrastructure across China’s cost is 10-15% higher
Sustainable R&D for specialty private, industry and public spaces. than Indian players. Thus, in the
chemical solutions through Thus, the application of fire-resistant coming times, global demand for
re-use and re-cycling flame-retardant specialty chemical specialty chemicals will be met from
With the Indian government both at solutions for public places likes India owing to the ‘Make in India’
the central and local municipality factories, malls, stadiums, movie thrust and implementation of global
levels focusing on industrial theaters etc. is becoming mandatory. standards of environment norms and
pollution and effluent treatment, the The Bureau of Indian Standards industrial safety. Vikas Ecotech’s
specialty chemical industry will act requirements will automatically growth into sophisticated high value
as a catalyst in providing solutions result in an increased demand for developed markets will be aided by
for re-use and re-cycling. This will Vikas Ecotech’s V-ECOFLAMEX fire this measure.
create a similar movement and retardant additive and contribute
awareness like the e-waste sector. to the safety measures being We see natural demand-led growth
Vikas Ecotech has developed a niche implemented across public spaces, for Indian specialty chemical players
technique of converting used edible factories and private homes. in the years to come due to the above
oil to specialty plastic additives. macroeconomic developments. As
When scaled up at the national Meeting China’s export demand one of India’s leading homegrown
level, it will act as a strong deterrent for the entire world organized specialty chemical players,
to repeated re-heating of cooking oil With China clamping down on Vikas Ecotech is well prepared to ride
as toxic aldehydes are released that industries and enforcing stricter this growth journey with profitable
are harmful to humans. environmental norms, the country’s yet sustainable results.
export competitiveness in the

Vikas Ecotech’s
No other player in
V-ECOFLAMEX fire retardant
India currently has
additive contributes to the
the proprietary green
safety measures being
technology for lead-free
implemented across public
Organotin Stabilisers.
spaces, factories and
private homes.

Vikas Ecotech Annual Report 2015-16

 38 sectors

Serving a diverse range of industries

Cables &
Agriculture Automobiles
Wires

Products Used Products Used Products Used

Organotin Stabilizers Plasticizers Plasticizers

Plasticizers Flame Retardants Flame Retardants

PVC Compounds TPR Compounds EVA & PVC Compounds

Organic &
Inorganic Polymers Healthcare
Chemicals Industry

Products Used Products Used Products Used

Chlorinated Paraffin Organotin Stabilizers Organotin Stabilizers

DMTDC Plasticizers Plasticizers

Chlorinated Polyethylene PVC Compounds

Artificial
Packaging Footwear
Leather

Products Used Products Used Products Used

Organotin Stabilizers Plasticizers Plasticizers

Plasticizers Flame Retardants TPR Compounds

Recycled PET TPR Compounds PVC Compounds

Vikas Ecotech Annual Report 2015-16

 39

FINANCIAL
REPORTS &
STATEMENTS

Vikas Ecotech Annual Report 2015-16

 40 finanacial REports & statements

BOARD’S REPORT

The Members,
Vikas EcoTech Limited

Your Directors have pleasure in presenting the 31st Annual Report on the business and operations of the Company and Audited
Statement of Accounts for the year ended March 31, 2016.

1. FINANCIAL SUMMARY OR HIGHLIGHTS

The Company’s financial performance, for the year ended March 31, 2016 is summarized below:-
(` in lacs)
Particulars 2015-2016 2014-2015
Net Sales /Income from Business Operations 30,715.20 21,101.55
Other Income 483.09 370.70
Total Income 31,198.29 21,472.24
Gross Expenditure 25,818.12 19,437.03
Less Interest 1,133.53 1,071.12
Profit before Depreciation 4,246.64 964.09
Less Depreciation 337.07 341.80
Profit after depreciation and Interest/Net Profit Before Tax 3,925.68 622.29
Less Current Tax 1,324.36 124.51
Less Previous year adjustment of Income Tax 38.46 63.63
Less Deferred Tax (17.83) (36.43)
Mat Credit Availed 27.24 92.00
Net Profit after Tax 2,553.45 378.58
Add Share of Profit from Partnership
firm/Minority Interest - -
Profit for the Period 2,553.45 378.58
Less Proposed Dividend 127.11 127.11
Less Provision for Dividend Distribution Tax 25.87 24.26
Net Profit after dividend and Tax 2,400.47 227.21
Amount transferred to General Reserve 178.73 26.50
Profits carried to Balance Sheet 2,221.74 200.71
Earnings per Share (Basic) 1.00 0.15
Earnings per Share (Diluted) 1.00 0.15

Vikas EcoTech Limited achieved 46% growth in its gross revenue to `323 Crores in 2015-16 as against `221 crores in 2014-15
The financial year 2015-16 embarked upon visible improvement in operating profit margins due to focused cost efficiency measures,
price discipline and low commodity prices. Vikas EcoTech sustained its investment in brand and manpower to prepare for next growth
phase. The operating profit before tax grew by 530% to `39.25 crores in financial year 2015-16 as compared to `6.22 crores in financial
year 2014-15. Your Company is financially strong and self reliant in terms of funds generation, debt servicing and has been able to
generate sufficient profits for dividend payouts. A constant rise in turnover and profits of the Company is apparent and your Directors are
expecting better results both in terms of operations of the Company and its financial position.

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 finanacial REports & statements 41
2. STATE OF AFFAIRS OF THE COMPANY
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 raise 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
As a move forward and with the help of information technology, your Company is planning to introduce new products in market. The
Company is scheduling another manufacturing unit at land allotted by Gujarat Industrial Development Corporation (A Government
of Gujarat undertaking) at Dehej-II, Industrial Estate, District- Bharuch (Gujarat) to cater the market of Western and Southern India
and also for exports its products like Methyle Tin Mercaptile and Epoxidised Soya Bean Oil.

Subsidiary Companies, Joint Venture and Consolidated Financial Statements

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

3. RESERVES
Your Company proposes to carry `1.78 crores to the general reserve and retain `22.22 crores in the profit and loss account.

4. DIVIDEND
Your Directors are pleased to recommend a dividend @ 5% i.e. of `0.05/- (Five Paisa) per share on 25,42,39,675 (Twenty Five
Crore Forty Two Lac Thirty Nine Thousand Six Hundred Seventy Five) Equity Shares for the current financial year. The dividend
if approved and declared in the ensuing Annual General meeting would result in a payout of `1,27,11,983.75/- (Rupees One
Crore Twenty Seven Lac Eleven Thousand Nine Hundred Eighty Three and Paisa Seventy Five) and Dividend Distribution Tax of
`25,87,906/- aggregating a total outflow of `1,52,99,889/-.
The dividend would be payable to all Shareholders whose names appear in the Register of Members as on the Book Closure Date.
The Register of Members and Share Transfer books shall remain closed from Saturday, September 24, 2016 to Friday, September
30, 2016 (both days inclusive).

5. 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
No 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.

6. CHANGE IN THE NATURE OF BUSINESS, IF ANY

There was no change in the nature of business of the Company during the financial year ended March 31, 2016.

7. DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL INCLUDING THOSE WHO WERE APPOINTED OR HAVE
RESIGNED DURING THE YEAR
Pursuant to the provisions of Section 152 of the Companies Act, 2013, Shri Vivek Garg, Whole-time Director, is due to retire by
rotation at the ensuing Annual General Meeting, and being eligible, offers himself for re-appointment.

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 42 finanacial REports & statements

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.
Mrs. Vibha Mahajan was appointed as Additional Director (Women Director) of the Company on August 12, 2015 and regularize in the
meeting of shareholders held at September 30, 2015.

Mr. Narender Kumar Garg, Non Executive Independent Director resigned on April 29, 2016 and Ms. Deepika Bhardwaj, Executive
Director resigned on May 18, 2015

Ms. Gayatri Chawla working as Company Secretary of the Company w.e.f. 14.02.2015 resigned on 29.02.2016. Thereafter Mr.
Siddharth Agrawal was appointed as Company Secretary of the Company on 23.05.2016

Appropriate Resolution(s) seeking your approval to the appointment/ re-appointment of Directors are also included in the Notice.

8. NUMBER OF MEETINGS OF BOARD OF DIRECTORS

During the financial year 2015-2016, the Board of Directors of the Company, met 4 (Four) times on, May 30, 2015, August 12,
2015, October 26, 2015, February 4, 2016.

9. 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) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper
explanation relating to material departures;
b) 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;
c) 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;
d) the directors had prepared the annual accounts on a going concern basis;
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.

10. DECLARATION BY INDEPENDENT DIRECTOR(S) AND RE-APPOINTMENT, IF ANY

All the Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated
in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the
provisions of the Companies Act, 2013 and the relevant rules.

11. NOMINATION AND REMUNERATION POLICY OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
In adherence of section 178(1) of the Companies Act, 2013, the Board of Directors of the Company in its Meeting held on 14th
February 2014, approved a policy on directors’ appointment and remuneration including criteria for determining qualifications,
positive attributes, independence of a director and other matters provided u/s 178(3), based on the recommendations of the
Nomination and Remuneration Committee. The broad parameters covered under the Policy are – Company Philosophy, Guiding
Principles, Nomination of Directors, Remuneration of Directors, Nomination and Remuneration of the Key Managerial Personnel

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 finanacial REports & statements 43
(Other than Managing/ Whole-time Directors), Key-Executives and Senior Management and the Remuneration of Other Employees.
The Company’s Policy relating to appointment of Directors, payment of Managerial remuneration, Directors’ qualifications, positive
attributes, independence of Directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 is
furnished in ANNEXURE – D and forms part of this Report.

12. FORMAL ANNUAL EVALUATION

In line with the statutory requirements enshrined under the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board carried out a performance evaluation of itself, its Committees, the Chairman and
each of the other Directors. As in previous year, this was carried out on the basis of framework approved by the Nomination and
Remuneration Committee. The Committee had unanimously consented for an ‘in-house’ review built on suggestive parameters.
Based on the suggestive parameters approved by the Nomination and Remuneration Committee, the following evaluations were
carried out:
 Review of Board as a whole by all the Members of the Board
 Review of all Board Committees by all the Members of the Board
 Review of Individual Directors by rest of the Board Members except the Director being evaluated

13. EXTRACT OF THE ANNUAL RETURN

The extract of the Annual Return in Form No. MGT – 9 forms part of the Board’s Report and is annexed herewith as ANNEXURE - A.

14. AUDITORS
1. Statutory Auditors
The Statutory Auditors, M/s RSPH & Associates, Chartered Accountants, (Registration No.) hold office till the conclusion of
the ensuing Annual General Meeting.
2. Cost Auditors
Pursuant to the provisions of Section 141 read with Section 148 of the Companies Act, 2013 and Rules made there under,
M/s Niraj Kumar Vishwakarma & Associates, Cost Accountants, New Delhi were appointed as the cost auditors of the
Company for the year ending March 31, 2016.
In terms of the Cost Audit Order notified by the Ministry of Corporate Affairs dated December 31, 2014, the Company is
covered under the purview of Cost Audit.
3. Secretarial Auditors
Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with corresponding Rules framed there under,
M/s AAA & Associates were appointed as the Secretarial Auditors of the Company to carry out the secretarial audit for the
year ending March 31, 2016.
A Secretarial Audit Report given by the Secretarial Auditors in Form No. MR-3 is annexed with this Report as ANNEXURE –
G. There are no qualifications, reservations or adverse remarks made by Secretarial Auditors in their Report.

15. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186

During the financial year ended March 31, 2016, no Loans, Investment or guarantee u/s 186 of the Companies Act, 2013 was
made by the Company.

16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

The particulars of every contract and arrangement entered into by the Company with related parties referred to in sub-section (1)
of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto are disclosed
in Form No. AOC-2 in ANNEXURE – B and form part of this Report.

17. DETAILS RELATING TO DEPOSITS COVERED UNDER CHAPTER V OF THE ACT

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 44 finanacial REports & statements

The Company has not accepted any deposits during the year under review.
18. 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 Corporate Social Responsibility Policy of the
Company and is monitoring implementation of the same. The CSR Committee reports to the Board. 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
Education Society (Regd.)” and `15,00,000/- (Rupees Fifteen Lacs) were allocated and spent for the said cause of promoting education
being one of the areas Company is presently focusing.

The Annual Report on Company’s CSR activities is furnished in “Annexure E” and attached to this report.

19. AUDIT COMMITTEE

The Audit Committee of the Board of Directors of the Company, comprises 3 (Three) Members, namely Shri Sumer Chand
Tayal, Shri. Manoj Singhal, Shri. Purushottam Dass Bhoot all of them being Independent Directors. Shri Sumer Chand Tayal,
an independent Director, is the Chairperson of the Audit Committee. The Board accepted the recommendations of the Audit
Committee whenever made by the Committee during the year.

20. DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY

The risk management includes identifying types of risks and its assessment, risk handling and monitoring and reporting. The
Company has developed a risk management policy and has also constituted Risk Management Committee consisting majority of
non-executive independent Directors for timely recognition and cure of the business, financial and other risks associated with the
working of the Company. The composition and other details of the Risk Management Committee of the Company are detailed in
Corporate Governance Report. The Committee meets at regular intervals and monitors implementation of Risk Management Policy
of the Company.

21. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL
STATEMENTS
The Risk Management and Governance Department of the Company have assured the existence of various risk-based controls in
the Company and also tested the key controls towards assurance for compliance for the present fiscal.
Further, the testing of such controls was also carried out independently by the Statutory Auditors of the Company as mandated
under the provisions of the Companies Act, 2013.
In the opinion of the Board, the existing internal control framework is adequate and commensurate to the size and nature of the
business of the Company.

22. DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM FOR DIRECTORS AND EMPLOYEES

The Company has also established a vigil mechanism and overseas it through the Audit Committee to resolve the genuine concerns
expressed by the employees and other Directors. The Company has also provided adequate safeguards against victimization of
employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit
Committee on reporting issues concerning the interests of co-employees and the Company.

23. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE
There was no significant and material order passed by the regulators or courts or tribunals impacting the going concern status
and Company’s operations in future.

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24. DETAILS PURSUANT TO SECTION 197(12) OF THE COMPANIES ACT, 2013
Details pursuant to section 197(12) of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 form part of this Report and are annexed herewith as ANNEXURE- C.

25. EMPLOYEES STOCK OPTION PLANS

The Company pursuant to the Special Resolution passed at the Annual General Meeting held on September 28, 2011 for issue
and allotment of Equity shares under Employee Stock Option Scheme (ESOS), has constituted a Compensation Committee.
An Employee Stock Option Scheme 2011 (ESOS 2011) to reward the Employees of the Company for their performance and
association with the Company and to motivate them to contribute to the growth and profitability of the Company was accordingly
formulated and implemented.

During the previous financial year no exercise of options has taken place during the financial year under reporting and thus no
shares has been allotted under Employee Stock Option Scheme 2011 of the Company.

During the previous financial year the said scheme has been lapsed as on December 1, 2015 and no shares can now be allotted
against the same. The Board of Directors had passed a resolution in their meeting held on February 4, 2016 to rescind the said
scheme of the Company

Disclosures under Regulation 14 of Securities Exchange Board of India (Share Based Employment Benefits) Regulations,
2014 are available at website of the Company www.vikasecotech.com at weblink : http://vikasecotech.com/announcement/
DisclosureunderSEBI.pdf.

26. CREDIT RATINGS

During the year under review Brickwork Ratings India Private Limited, A SEBI, RBI & NSIC registered credit rating agency in
India, has assigned Bank rating BWR BBB- (BWR Triple B minus) for Long-term bank facilities and the Outlook of which is Stable
regarding timely servicing of financial obligations and BWR A3 (BWR A Three) for Short-term bank facilities.

27. CORPORATE GOVERNANCE

Your Company upholds the standards of governance and is compliant with the Corporate Governance provisions as stipulated
under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in both letter and spirit. The Company’s core
values of honesty and transparency have since its inception been followed in every line of decision making. Setting the tone at
the top, your Directors cumulatively at the Board level, advocate good governance standards. Vikas EcoTech has been built on a
strong foundation of good corporate governance which is now a standard for all operations across your Company.

Parameters of Statutory compliances evidencing the standards expected from a listed entity have been duly observed and a Report
on Corporate Governance as well as the Certificate from Statutory Auditors confirming compliance with the requirements of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 forms part of the Annual Report.

Further, the Management Discussion and Analysis Report and CEO / CFO Certificate as prescribed under SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 are also presented in separate sections forming part of the Annual Report.

28. ENVIRONMENT, HEALTH AND SAFETY

Your 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

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 46 finanacial REports & statements

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.

29. 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.

30. LISTING OF SECURITIES

The shares of the Company are listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).
Subsequent to the notification of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations)
during the year, the Company has entered into “Uniform Listing Agreement” with both the Stock Exchanges where its securities are
listed, namely, National Stock Exchange of India Limited and BSE Limited in order to carry out a novation of the erstwhile Listing
Agreement. The listing fee for the year 2016-17 has already been paid to the credit of both the Stock Exchanges.

31. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

During the year under review, the Company has not transferred any amount in Investor Education and Protection Fund.

32. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE, EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo as required
under Section 134(3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished
in ANNEXURE - F and forms part of this Report.

33. 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.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Vikas EcoTech Limited

(Purushottam Dass Bhoot) (Vikas Garg)

Chairman & Director Managing Director
DIN-00094087 DIN-00255413

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 finanacial REports & statements 47
Annexure a to Board Report

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN
as on financial year ended on 31.03.2016
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company
(Management & Administration ) Rules, 2014.

I. REGISTRATION & OTHER DETAILS:

i CIN L65999DL1984PLC019465
ii Registration Date 30.11.1984
iii Name of the Company Vikas EcoTech Limited (Formerly Vikas GlobalOne Limited)
iv Category/Sub-category of the Company Limited by Shares/Indian Non-Government Company
Company
v Address of the Registered Address : Vikas Apartments, 34/1, East Punjabi Bagh, New Delhi-110026
office & contact details Telephone : 011-43144444
Fax : 011-43144488
Email : [email protected]
Website : www.vikasecotech.com
vi Whether listed company Yes
vii Name , Address & contact Name : Alankit Assignments Limited
details of the Registrar & Address : 4E/2, Alankit House, Jhandewalan Extension, New Delhi- 110055
Transfer Agent, if any Telephone : 011-42541234
Email Address : [email protected]
Website : www.alankit.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be stated.

Sr. Name and Description of main products / NIC Code of the Product/service % to total turnover of the
No. services Company
1 Thermoplastic Rubber Compounds 20119 33.97

III. PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES

Sr. No. Name and CIN/GLN Holding/ % Of Applicable
Address of the Subsidiary/ Sharesheld Section
Company Associate

The Company has no subsidiary/associate as on 31st March, 2016

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 48 finanacial REports & statements

II. SHAREHOLDING PATTERN (Equity Share capital Break up as % to total Equity)

Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
during
Demat Physical Total % of Total Demat Physical Total % of Total
the year
Shares Shares

A. Promoters

(1) Indian

a) Individual/ HUF 7,67,84,305 0 7,67,84,305 30.20 7,37,44,305 0 7,37,44,305 29.01 -1.20

b) Central Govt 0 0 0 0 0 0 0 0 0

c) State Govt(s) 0 0 0 0 0 0 0 0 0

d) Bodies Corp. 3,03,24,075 0 3,03,24,075 11.93 4,32,21,141 0 4,32,21,141 17.00 5.07

e) Banks / FI 0 0 0 0 0 0 0 0 0

f) Any other 0 0 0 0 0 0 0 0 0

Total shareholding of Promoter 10,71,08,380 0 10,71,08,380 42.13 11,69,65,446 0 11,69,65,446 46.01 3.88
(A)

B. Public Shareholding

1. Institutions

a) Mutual Funds 0 0 0 0 0 0 0 0 0

b) Banks / FI 0 0 0 0 0 0 0 0 0

c) Central Govt 0 0 0 0 0 0 0 0 0

d) State Govt(s) 0 0 0 0 0 0 0 0 0

e) Venture Capital Funds 0 0 0 0 0 0 0 0 0

f) Insurance Companies 0 0 0 0 0 0 0 0 0

g) FIIs 30,000 0 30,000 0.01 5,09,178 0 5,09,178 0.20 0.19

h) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0 0

i) Others (specify) 0 0 0 0 0 0 0 0 0

Sub-total (B)(1):- 30,000 0 30,000 0.01 5,09,178 0 5,09,178 0.20 0.19

2. Non-Institutions

a) Bodies Corp. 8,49,70,906 1,67,500 8,51,38,406 33.49 7,58,77,444 2,67,500 7,61,44,944 29.95 -3.54

i) Indian

ii) Overseas

b) Individuals

i) Individual shareholders 91,28,240 26,33,912 1,17,62,152 4.63 1,66,84,323 25,16,887 1,92,01,210 7.55 2.93
holding nominal share capital
upto `2 lakh

ii) Individual shareholders 4,88,52,767 11,61,375 5,00,14,142 19.67 4,14,08,897 0 4,14,08,897 16.29 -3.38
holding nominal share capital in
excess of `2 lakh

c) Others (specify)

c-i) Non Resident Indian 74,095 1,12,500 1,86,595 0.07 0 0 0 0 -0.07

c-ii) NBFC Registered with RBI 0 0 0 0 10,000 0 10,000 0.004 0.004

Sub-total (B)(2):- 14,30,26,008 40,75,287 14,71,01,295 57.86 13,39,80,664 27,84,387 13,67,65,051 54 -4.06

Total Public Shareholding 14,30,56,008 40,75,287 14,71,31,295 57.87 13,44,89,842 27,84,387 13,72,74,229 53.99 -3.87
(B)=(B)(1)+ (B)(2)

C. Shares held by Custodian for 0 0 0 0 0 0 0 0 0

GDRs & ADRs

Grand Total (A+B+C) 25,01,64,388 40,75,287 25,42,39,675 100 25,14,55,288 27,84,387 25,42,39,675 100 0.00

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 finanacial REports & statements 49
II. SHARE HOLDING OF PROMOTERS

Sr. Shareholder’s Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. Name share holding
during the year
No. of % of total %of Shares No. of Shares % of total %of Shares
Shares Shares of the Pledged / Shares of the Pledged /
company encumbered to company encumbered to
total shares total shares

1 Asha Garg 8,025 0.003 0 8,025 0.003 0 NIL

2 Baby Sukriti Garg 3,78,325 0.149 0 3,78,325 0.149 0 NIL

3 Ishwar Gupta 42,800 0.017 0 2,800 0.001 0 0

4 Seema Garg 32,17,175 1.265 0 32,17,175 1.265 0 NIL

5 Vikas Garg 5,33,62,250 20.989 0 5,03,62,250 19.809 0 -1

6 Vikas Garg (Sukriti 44,56,550 1.753 0 44,56,550 1.753 0 NIL

Welfare Trust)

7 Vikas Garg (HUF) 34,00,855 1.338 0 34,00,855 1.338 0 NIL

8 Vivek Garg 10,71,550 0.421 0 10,71,550 0.421 0 NIL

9 Usha Garg 22,33,000 0.878 0 22,33,000 0.878 0 NIL

10 Jai Kumar Garg 10,19,750 0.401 0 10,19,750 0.401 0 NIL

11 Jai Kumar Garg 11,18,500 0.440 0 11,18,500 0.440 0 NIL

(Huf)

12 Nand Kishore Garg 61,32,775 2.412 0 61,32,775 2.412 0 NIL

13 Nand Kishore Garg 3,37,750 0.133 0 3,37,750 0.133 0 NIL

(HUF)

14 Vaibhav Garg 5,000 0.002 0 5,000 0.002 0 NIL

15 Vikas Polymerland 3,03,24,075 11.927 0 0 0.000 0 -11.927

Pvt. Ltd.

16 Moonlite 0 0.000 0 4,32,21,141 17.000 0 17.000

Technochem Pvt.
Ltd.

TOTAL 10,71,08,380 42.126 0 11,69,65,446 46.006 0 3.880

* Moonlite Technochem Private Limited (Transferee Company) has acquired the shares of Magic Tradelink Private Limited (Formerly
Known as Jai Ganesh Chit Fund Private Limited) (Transferor Company) and Vikas Polymerland Private Limited (Transferor Company)
on 1st April, 2016, pursuant to the merger vide order of Hon’ble High Court of Delhi dated 09.09.2015 effective from 29.09.2015
whereas appointed date was 01.04.2014.

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 50 finanacial REports & statements

II. Change in Promoters’ Shareholding ( please specify, if there is no change)

Sr. Promoters Name Shareholding at the beginning of the year Cumulative Shareholding during the year
No.
1 Mrs. Asha Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 8,025 0.003
No Changes --- --- 8,025 0.003
At the End of the year 8,025 0.003

2 Baby Sukriti Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 3,78,325 0.149
No Changes --- --- 3,78,325 0.149
At the End of the year 3,78,325 0.149

3 Mr. Ishwar Gupta No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 42,800 0.017
Transactions (Purchase/sale) from -40,000 -0.016 2,800 0.001
12.02.2016 upto 19.02.2016
At the End of the year 2,800 0.001

4 Mrs. Seema Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 32,17,175 1.265
No Changes --- --- 32,17,175 1.265
At the End of the year 32,17,175 1.265

5 Mr. Vikas Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 5,33,62,250 20.989
Sale in the Open Market on -5,00,000 0.197 5,28,62,250 20.792
04.11.2015
Sale in the Open Market on -10,00,000 0.393 5,18,62,250 20.399
05.11.2015.
Sale in the Open Market on -5,00,000 0.197 5,13,62,250 20.202
06.11.2015.
Sale in the Open Market on -10,00,000 0.393 5,03,62,250 19.809
10.11.2015.
At the End of the year 5,03,62,250 19.809

6 Vikas Garg (Sukriti Welfare Trust) No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 44,56,550 1.753
No Changes --- --- 44,56,550 1.753
At the End of the year 44,56,550 1.753

7 Vikas Garg (HUF) No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 34,00,855 1.338
No Changes --- --- 34,00,855 1.338
At the End of the year 34,00,855 1.338

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 finanacial REports & statements 51
8 Mr. Vivek Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 10,71,550 0.42
No Changes --- --- 10,71,550 0.42
At the End of the year 10,71,550 0.42

9 Mrs. Usha Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 22,33,000 0.878
No Changes --- --- 22,33,000 0.878
At the End of the year 22,33,000 0.878

10 Mr. Jai Kumar Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 10,19,750 0.401
No Changes --- --- 10,19,750 0.401
At the End of the year 10,19,750 0.401

11 Jai Kumar Garg (HUF) No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 11,18,500 0.44
No Changes --- --- 11,18,500 0.44
At the End of the year 11,18,500 0.44

12 Mr. Nand Kishore Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 61,32,775 2.412
No Changes --- --- 61,32,775 2.412
At the End of the year 61,32,775 2.412

13 Nand Kishore Garg (HUF) No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 3,37,750 0.133
No Changes --- --- 3,37,750 0.133
At the End of the year 3,37,750 0.133

14 Mr. Vaibhav Garg No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year 5,000 0.002
No Changes --- --- 5,000 0.002
At the End of the year 5,000 0.002

15 Moonlite Technochem Pvt. Ltd. No. of shares % of total shares of No. of shares % of total shares of
the company the company
At the beginning of the year NIL NIL
Acquired the shares of Magic Tradelink 4,32,21,141 17 4,32,21,141 17
Private Limited (Formerly Known as
Jai Ganesh Chit Fund Private Limited)
(Transferor Company) and Vikas Poly-
merland Private Limited (Transferor
Company) on 1st April, 2016, pur-
suant to the merger vide order dated
09.09.2015 of Hon’ble High Court of
Delhi effective from 29.09.2015
At the End of the year 4,32,21,141 17

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 52 finanacial REports & statements

II. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of
GDRs and ADRs):

Sr. Shareholding at the beginning of the year Cumulative Shareholding during the year
No.
1 Athena Multitrade Private Limited No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 2,97,96,000 11.720
Transactions (Purchase/sale) from -1,54,500 -0.061 2,96,41,500 11.659
21.08.2015 upto 28.08.2015
Transactions (Purchase/sale) from -4,10,000 -0.161 2,92,31,500 11.498
29.01.2016 upto 05.02.2016
Transactions (Purchase/sale) from -3,00,000 -0.118 2,89,31,500 11.380
19.02.2016 upto 26.02.2016
Transactions (Purchase/sale) from -10,00,000 -0.393 2,79,31,500 10.986
26.02.2016 upto 04.03.2016
Transactions (Purchase/sale) from -75,00,000 -2.950 2,04,31,500 8.036
11.03.2016 upto 18.03.2016
At the End of the year (or on the 2,04,31,500 8.036
date of separation, if separated
during the year)

2 Globe Capital Market Limited No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 61,600 0.024
Transactions (Purchase/sale) from 13,08,569 0.515 13,70,169 0.539
01.04.2015 upto 12.02.2016
Transactions (Purchase/sale) from 17,08,243 0.672 30,78,412 1.211
12.02.2016 upto 19.02.2016
Transactions (Purchase/sale) from 17,13,401 0.674 47,91,813 1.885
19.02.2016 upto 26.02.2016
Transactions (Purchase/sale) from 34,11,809 1.342 82,03,622 3.227
26.02.2016 upto 04.03.2016
Transactions (Purchase/sale) from 9,07,706 0.357 91,11,328 3.584
04.03.2016 upto 11.03.2016
Transactions (Purchase/sale) from -3,57,211 -0.141 87,54,117 3.443
11.03.2016 upto 18.03.2016
Transactions (Purchase/sale) from 2,15,809 0.085 89,69,926 3.528
18.03.2016 upto 25.03.2016
Transactions (Purchase/sale) from 8,41,577 0.331 98,11,503 3.859
25.03.2016 upto 31.03.2016
At the End of the year (or on the 98,11,503 3.859
date of separation, if separated
during the year)

3 Globe Fincap Limited No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 5,40,000 0.212
Transactions (Purchase/sale) from -5,32,500 -0.209 7,500 0.003
01.04.2015 upto 11.03.2016
Transactions (Purchase/sale) from 75,00,000 2.950 75,07,500 2.953
11.03.2016 upto 18.03.2016
At the End of the year (or on the 75,07,500 2.953
date of separation, if separated
during the year)

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 finanacial REports & statements 53
4 Govind Aggarwal No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 29,34,527 1.154
No Transactions -- -- 29,34,527 1.154
At the End of the year (or on the 29,34,527 1.154
date of separation, if separated
during the year)

5 Surface Finance Private Limited No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 24,24,558 0.954
No Transactions -- -- 24,24,558 0.954
At the End of the year (or on the 24,24,558 0.954
date of separation, if separated
during the year)

6 Krishan Mittal No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 23,48,080 0.924
No Transactions -- -- 23,48,080 0.924
At the End of the year (or on the 23,48,080 0.924
date of separation, if separated
during the year)
7 Daya Goyal No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 21,92,400 0.862
No Transactions -- -- 21,92,400 0.862
At the End of the year (or on the 21,92,400 0.862
date of separation, if separated
during the year)

8 Naresh Kumar No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 21,67,500 0.853
No Transactions -- -- 21,67,500 0.853
At the End of the year (or on the 21,67,500 0.853
date of separation, if separated
during the year)

9 Ojas Asset Reconstruction No. of shares % of total shares No. of shares % of total shares of the
Company Limited of the company company
At the beginning of the year 21,50,900 0.846
No Transactions -- -- 21,50,900 0.846
At the End of the year (or on the 21,50,900 0.846
date of separation, if separated
during the year)

10 Harsha Goyal No. of shares % of total shares No. of shares % of total shares of the
of the company company
At the beginning of the year 19,35,000 0.761
No Transactions -- -- 19,35,000 0.761
At the End of the year (or on the 19,35,000 0.761
date of separation, if separated
during the year)

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 54 finanacial REports & statements

II. Shareholding of Directors and Key Managerial Personnel:

Sr. Name of the Directors & KMP’s Shareholding at the beginning of Cumulative Shareholding during
No. the year the year
1 Mr. Vikas Garg No. of shares % of total shares of No. of shares % of total shares
(Managing Director) the company of the company
At the beginning of the year 5,33,62,250 20.989
Sale in the Open Market on 04.11.2015. -5,00,000 0.197 5,28,62,250 20.792
Sale in the Open Market on 05.11.2015. -10,00,000 0.393 5,18,62,250 20.399
Sale in the Open Market on 06.11.2015. -5,00,000 0.197 5,13,62,250 20.202
Sale in the Open Market on 10.11.2015. -10,00,000 0.393 5,03,62,250 19.809
At the End of the year 5,03,62,250 19.809

2 Mr. Vivek Garg No. of shares % of total shares of No. of shares % of total shares
(Whole-Time Director) the company of the company
At the beginning of the year 10,71,550 0.42
No Changes --- --- 10,71,550 0.42
At the End of the year 10,71,550 0.42

3 Mr. Ashutosh Kumar Verma (CEO & Whole-Time No. of shares % of total shares of No. of shares % of total shares
Director) the company of the company
At the beginning of the year 75,000 0.029
No Changes --- --- 75,000 0.029
At the End of the year 75,000 0.029

4 Ms. Deepika Bhardwaj (Whole-Time Director, No. of shares % of total shares of No. of shares % of total shares
Resigned on 18.05.2015) the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL
5 Mr. Prushottam Dass Bhoot (Director) No. of shares % of total shares of No. of shares % of total shares
the company of the company
At the beginning of the year 40,000 0.016
No Changes --- --- 40,000 0.016
At the End of the year 40,000 0.016

6 Mr. Sumer Chand Tayal No. of shares % of total shares of No. of shares % of total shares
(Director) the company of the company
At the beginning of the year 1,87,500 0.074
Sale in the Open Market on 06.04.2015. -5,978 -0.002 1,81,522 0.071
Sale in the Open Market on 09.04.2015. -2,000 -0.001 1,79,522 0.071
Sale in the Open Market on 05.05.2015. -4,183 -0.002 1,75,339 0.069
Sale in the Open Market on 15.05.2015. -4,000 -0.002 1,71,339 0.067
Sale in the Open Market on 19.06.2015. -4,000 -0.002 1,67,339 0.066
Sale in the Open Market from June to March -1,06,189 -0.042 61,150 0.024
At the End of the year 61,150 0.024

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 finanacial REports & statements 55
7 Mr. Pradip Kumar Banerji (Director) No. of shares % of total shares of No. of shares % of total shares
the company of the company
At the beginning of the year 1,87,500 0.074
No Changes --- --- 1,87,500 0.074
At the End of the year 1,87,500 0.074

8 Mr. Jagdish Capoor (Director) No. of shares % of total shares of No. of shares % of total shares
the company of the company
At the beginning of the year 1,87,500 0.074
No Changes --- --- 1,87,500 0.074
At the End of the year 1,87,500 0.074

9 Mr. Narender Kumar Garg (Director, Resigned on No. of shares % of total shares of No. of shares % of total shares
29.04.2015) the company of the company
At the beginning of the year 1,87,500 0.074
No Changes --- --- 1,87,500 0.074
At the End of the year 1,87,500 0.074

10 Mr. Manoj Singhal (Director) No. of shares % of total shares of No. of shares % of total shares
the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL

11 Mrs. Vibha Mahajan (Director, Appointed on No. of shares % of total shares of No. of shares % of total shares
12.08.2015) the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL

12 Ms. Gayatri Chawla (Company Secretary, No. of shares % of total shares of No. of shares % of total shares
Resigned on 29.02.2016) the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL

13 Mr. Siddharth Agrawal (Company Secretary, No. of shares % of total shares of No. of shares % of total shares
Appointed on 23.05.2016) the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL

14 Mr. Pankaj Kumar Gupta (Chief Financial Officer) No. of shares % of total shares of No. of shares % of total shares
the company of the company
At the beginning of the year NIL NIL
No Changes --- ---
At the End of the year NIL NIL

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 56 finanacial REports & statements

INDEBTEDNESS
Indebtedness of the Company including interest outstanding/ accrued but not due for payment
(amount in `)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 8,90,76,870 NIL NIL 8,90,76,870
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii) 8,90,76,870 NIL NIL 8,90,76,870
Change in Indebtedness during the financial year
* Addition 5,05,18,301 5,05,18,301
* Reduction 1,83,71,760 1,83,71,760
Net Change 3,21,46,541 NIL NIL 3,21,46,541
Indebtedness at the end of the financial year
i) Principal Amount 12,12,23,411 NIL NIL 12,12,23,411
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii) 12,12,23,411 NIL NIL 12,12,23,411

REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

(amount in `)
Sr.
Particulars of Remuneration Name of the Directors Total Amount
no.
Mr. Vikas Garg Mr. Vivek Garg Mr. Ashutosh Kumar
(MD) (WTD) Verma (WTD)
1 Gross salary
(a) Salary as per provisions contained 3,60,000 NIL 16,80,000 20,40,000
in section 17(1) of the Income-tax Act,
1961
(b) Value of perquisites u/s 17(2) 2,40,000 0 0 2,40,000
Income-tax Act, 1961
(c) Profits in lieu of salary under 0 0 0 0
section 17(3) Income- tax Act, 1961
2 Stock Option 0 0 0 0
3 Sweat Equity 0 0 0 0
4 Commission 0 0 0 0
- as % of profit
- others, specify…
5 Others, please specify 0 0 0 0
Total (A) 6,00,000 NIL 16,80,000 22,80,000
Ceiling as per the Act

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 finanacial REports & statements 57
B. Remuneration to other directors
(amount in `)
Sr. Particulars of Name of Directors Total
no. Remuneration Amount
Mr. Jagdish Capoor Mr. Sumer Chand Mr. Pradip Mr. P D Bhoot
(Independent Tayal Kumar Banerji (Independent
Director)” (Independent (Independent Director)
Director) Director)
1 Independent Directors
Fee for attending board 40,000 60,000 60,000 60,000 2,20,000
committee meetings
Commission 0 0 0 0 0
Others, please specify 0 0 3,000 0 3,000
Total (1) 40,000 60,000 63,000 60,000 2,23,000
2 Other Non-Executive Directors 0 0 0 0 0
Fee for attending board 0 0 0 0 0
committee meetings
Commission 0 0 0 0 0
Others, please specify 0 0 0 0 0
Total (2) 0 0 0 0 0
Total (B)=(1+2) 40,000 60,000 63,000 60,000 2,23,000
Total Managerial
Remuneration
Overall Ceiling as per the Act

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

(amount in `)
Sr. Particulars of Remuneration Key Managerial Personnel
no.
Mr. Pankaj Ms. Gayatri Chawla, Total
Kumar Gupta, Company Secretary
Chief Financial Officer
1 Gross salary
(a) Salary as per provisions contained in 5,79,780 7,21,637 13,01,417
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax
Act, 1961
(c) Profits in lieu of salary under section
17(3) Income-tax Act, 1961
2 Stock Option
3 Sweat Equity
4 Commission
- as % of profit
others, specify…
5 Others, please specify
Total 5,79,780 7,21,637 13,01,417

XII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: NONE

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 58 finanacial REports & statements

Annexure B to Board Report

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.
Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub
section (1) of section 188 of the Companies Act, 2013 including certain arms length transaction under third proviso thereto.

1. Details of contracts or arrangements or transactions not at Arm’s length basis.

NONE, DURING THE REPORTING PERIOD, ALL TRANSACTIONS WERE AT ARM’S LENGTH BASIS
Sr. No. Particulars Details
a)        Name (s) of the related party & nature of relationship Not Applicable
b)       Nature of contracts/arrangements/transaction Not Applicable
c)        Duration of the contracts/arrangements/transaction Not Applicable
d)       Salient terms of the contracts or arrangements or transaction including the value, if any Not Applicable
e)        Justification for entering into such contracts or arrangements or transactions’ Not Applicable
f)         Date of approval by the Board Not Applicable
g)        Amount paid as advances, if any Not Applicable
Date on which the special resolution was passed in General meeting as required under first
h)       Not Applicable
proviso to section 188

2.    Details of material contracts or arrangements or transactions at Arm’s length basis.

Sr. No. Particulars Details

a)        Name (s) of the related party & nature of relationship
b)       Nature of contracts/arrangements/transaction There are no
c)        Duration of the contracts/arrangements/transaction material contracts/
arrangements
d)       Salient terms of the contracts or arrangements or transaction including the value, if any entered into by
e)        Date of approval by the Board the Company.
f)         Amount paid as advances, if any

*Details of other related party transactions are forming part of Notes to financial statements, refer note no. 42.

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 finanacial REports & statements 59
Annexure C to Board Report

DETAILS PURSUANT TO SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

Remuneration paid to Directors & Key Managerial Personnel’s (KMP’s):

Title Remuneration Remuneration No. of Stock % increase of Excl. MP Incl. MP Ratio of remuneration to
in F.Y. in F.Y. options/RSUs remuneration
Ratio of Ratio of Revenues Net Profit
2015-16 2014-15 granted in F.Y. in 2015-16
remuneration remuneration (F.Y. 2015- (F.Y.
(`In Lacs) (`In Lacs) 2015-16 as compared
to MRE to MRE and 16) 2015-16)
to 2014-15
MP
Whole-Time 16.8 16.8 - - 7 7.28 0.05% 0.66%
Director and CEO
Director - 1.32 - - - - 0.00% 0.00%
Chief Financial 5.8 4.6 - 21.82% 2.42 2.51 0.02% 0.23%
Officer
Managing Director 6 5.72 - 5.31% 2.5 2.6 0.02% 0.23%
Company Secretary 7.21 5.27 - 36.81% 3 3.13 0.02% 0.28%

The Median Remuneration of Employees (MRE) excluding Managerial Personnel (MP) was `2,40,000/- and `3,13,306/- in F.Y. 2015-
16 and F.Y. 2014-15 respectively. The decrease in MRE (excluding MP) in F.Y. 2015-16, as compared to F.Y. 2014-15 is 23%.

The Median Remuneration of Employees (MRE) including Managerial Personnel (MP) was `2,30,643/- and `2,96,700/- in F.Y. 2015-
16 and F.Y. 2014-15 respectively. The decrease in MRE (including MP) in F.Y. 2015-16, as compared to F.Y. 2014-15 is 22%.
The number of permanent employees on the rolls of the Company as of March 31, 2016 and March 31, 2015 was 81 and 63
respectively.

The revenue growth during F.Y. 2015-16 over F.Y. 2014-15 was 46% and net profit after tax of `2553.42 lacs was recorded during the
F.Y. 2015-16 against net profit after tax of `379 lacs in the F.Y. 2014-15. The aggregate increase in salary for MP and other KMP’s, in
the current financial year, was 0.94% over F.Y. 2014-15. This was based on the recommendation of the nomination and remuneration
committee to revise the remuneration as per industry benchmarks.

The market capitalization of the Company increased by 154% to `399.66 Crore as of March 31, 2016 from `157.62 Crore as
of March 31, 2015 (Base BSE). The Price Earning (P/E) Ratio was `15.72/- as of March 31, 2016 as compared to `41.33/- as on
March 31, 2015. The closing price of the Company’s equity shares on the NSE and BSE as of March 31, 2016 was `15.72/- and
`15.65/- respectively.

The Company’s variable compensation philosophy for its managerial personnel is to ensure it is competitive in the global markets in
which it operates, for attracting and retaining the best talent.

Component of remuneration to directors and other KMPs Fixed Salary Bonus Commission Total
As a Percentage of revenue for F.Y. 2015-16 0.12% - - 0.12%
As a Percentage of net profit for F.Y. 2015-16 1.40% - - 1.40%

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 60 finanacial REports & statements

Annexure D
REMUNERATION POLICY

INTRODUCTION
In pursuance of the Company’s policy to consider human resources as its invaluable assets, to pay equitable remuneration to all
Directors, Key Managerial Personnel (KMP) and employees of the Company, to harmonize the aspirations of human resources consistent
with the goals of the Company and in terms of the provisions of the Companies Act, 2013 and the Listing Agreement as amended from
time to time this policy on nomination and remuneration of Directors, Key Managerial Personnel and Senior Management has been
formulated by the Committee and approved by the Board of Directors.

OBJECTIVE AND PURPOSE

The objective and purpose of this policy are:
 To lay down criteria and terms and conditions with regard to identifying persons who are qualified to become Directors (Executive
and Non-Executive) and persons who may be appointed in Senior Management and Key Managerial positions and to determine
their remuneration.
 To carry out evaluation of the performance of Directors, as well as Key Managerial and Senior Management Personnel.
 To provide them reward linked directly to their effort, performance, dedication and achievement relating to the Company’s
operations.
 To retain, motivate and promote talent and to ensure long term sustainability of talented managerial persons and create competitive
advantage. In the context of the aforesaid criteria the following policy has been formulated by the Nomination and Remuneration
Committee and adopted by the Board of Directors at its meeting held on 14th February, 2015.

DEFINITIONS
 Board means Board of Directors of the Company.
 Director means Directors of the Company.
 Committee means Nomination and Remuneration Committee of the Company as constituted or reconstituted by the Board.
 Company means Vikas EcoTech Limited.
 Independent Director means a director referred to in Section 149(6) of the Companies Act, 2013.
 Key Managerial Personnel (KMP) means a KMP as as defined under Section 203 of the Companies Act, 2013 and includes:
i. CEO/Managing Director/Manager;
ii. Whole-time Director;
iii. Chief Financial Officer;
iv. Company Secretary;
v. Such other officer as may be prescribed under the applicable statutory provisions/regulations.
 Senior Management means personnel of the Company occupying the position of Chief Executive Officer (CEO) of any unit / division
or Vice President including Vice President of any unit / division of the Company General Manager including General Manager of
any division or unit. Unless the context otherwise requires, words and expressions used in this policy and not defined herein but
defined in the Companies Act, 2013 as may be amended from time to time shall have the meaning respectively assigned to them
therein.

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 finanacial REports & statements 61
APPLICABILITY
This Nomination and Remuneration Policy applies to:
 All Directors (Executive and Non Executive)
 Key Managerial Personnel

 Senior Management Personnel
 Other Employees

GENERAL
This Policy is divided in three parts: Part – A covers the matters to be dealt with and recommended by the Committee to the Board,
Part – B covers the appointment and nomination and Part – C covers remuneration and perquisites etc.

PART – A

MATTERS TO BE DEALT WITH, PERUSED AND RECOMMENDED TO THE BOARD BY THE NOMINATION AND REMUNERATION
COMMITTEE
The Committee shall:
 Formulate the criteria for determining qualifications, positive attributes and independence of a director. Identify persons who
are qualified to become Director and persons who may be appointed in Key Managerial and Senior Management positions in
accordance with the criteria laid down in this policy.
 Recommend to the Board, appointment and removal of Director, KMP and Senior Management Personnel.

PART – B

POLICY FOR APPOINTMENT AND REMOVAL OF DIRECTOR, KMP AND SENIOR MANAGEMENT
Appointment criteria and qualifications:
 The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment as
Director, KMP or at Senior Management level and recommend to the Board his / her appointment.
 A person should possess adequate qualification, expertise and experience for the position he/she is considered for appointment.
The Committee has discretion to decide whether qualification, expertise and experience possessed by a person is sufficient /
satisfactory for the concerned position.
 The Company shall not appoint or continue the employment of any person as Wholetime Director who has attained the age of
seventy years. Provided that the term of the person holding this position may be extended beyond the age of seventy years with
the approval of shareholders by passing a special resolution based on the explanatory statement annexed to the notice for such
motion indicating the justification for extension of appointment beyond seventy years.

Term / Tenure
A. Managing Director / Whole-Time Director
The Company shall appoint or re-appoint any person as its Managing Director or Executive Director (Whole-time Director) for a
term not exceeding five years at a time. No re-appointment shall be made earlier than one year before the expiry of term.

B. Independent Director
An Independent Director shall hold office for a term up to five consecutive years on the Board of the Company and will be
eligible for re-appointment for another term of upto five consecutive years on passing of a special resolution by the Company and
disclosure of such appointment in the Board’s report.

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No Independent Director shall hold office for more than two consecutive terms, but such Independent Director shall be eligible for
appointment after expiry of three years of ceasing to become an Independent Director. Provided that an Independent Director shall
not, during the said period of three years, be appointed in or be associated with the Company in any other capacity, either directly or
indirectly.

At the time of appointment of Independent Director it should be ensured that number of Boards on which such Independent Director
Serves is restricted to seven listed companies as an Independent Director and three listed companies as an Independent Director in case
such person is serving as a Whole-time Director of a listed company.

Evaluation
The Committee shall carry out evaluation of performance of every Director (including Independent Director), KMP and Senior
Management Personnel at regular interval (yearly).

Removal
Due to reasons for any disqualification mentioned in the Companies Act, 2013, rules made thereunder or under any other applicable
Act, rules and regulations, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director, KMP
or Senior Management Personnel subject to the provisions and compliance of the said Act, rules and regulations.

Retirement
The Director, KMP and Senior Management Personnel shall retire as per the applicable provisions of the Companies Act, 2013 and the
prevailing policy of the Company. The Board will have the discretion to retain the Director, KMP, Senior Management Personnel in the
same position / remuneration or otherwise even after attaining the retirement age, for the benefit of the Company.

PART – C

POLICY RELATING TO THE REMUNERATION FOR THE WHOLE-TIME DIRECTOR, KMP AND SENIOR MANAGEMENT PERSONNEL
General:
The remuneration / compensation / commission etc. to the Whole-time Director, KMP and Senior Management Personnel will be
determined by the Committee and recommended to the Board for approval. The remuneration / compensation / commission etc. shall
be subject to the prior/post approval of the shareholders of the Company and Central Government, wherever required.
The remuneration and commission to be paid to the Whole-time Director shall be in accordance with the percentage / slabs / conditions
laid down in the Articles of Association of the Company and as per the provisions of the Companies Act, 2013, and the rules made
thereunder.

Increments to the existing remuneration / compensation structure may be recommended by the Committee to the Board which should
be within the slabs approved by the Shareholders in the case of Whole-time Director.

Where any insurance is taken by the Company on behalf of its Whole-time Director, Chief Executive Officer, Chief Financial Officer, the
Company Secretary and any other employees for indemnifying them against any liability, the premium paid on such insurance shall not
be treated as part of the remuneration payable to any such personnel. Provided that if such person is proved to be guilty, the premium
paid on such insurance shall be treated as part of the remuneration.

Remuneration to Whole-time / Executive / Managing Director, KMP and Senior Management Personnel:
Fixed Pay
The Whole-time Director / KMP and Senior Management Personnel shall be eligible for a monthly remuneration as may be approved by

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the Board on the recommendation of the Committee. The breakup of the pay scale and quantum of perquisites including, employer’s
contribution to P.F, pension scheme, medical expenses, club fees etc. shall be decided and approved by the Board on the recommendation
of the Committee and approved by the shareholders and Central Government, wherever required.

Minimum Remuneration
If, in any financial year, the Company has no profits or its profits are inadequate, the Company shall pay remuneration to its Whole-
time Director in accordance with the provisions of Schedule V of the Companies Act, 2013 and if it is not able to comply with such
provisions, with the previous approval of the Central Government.

Provisions for excess remuneration:

If any Whole-time Director draws or receives, directly or indirectly by way of remuneration any such sums in excess of the limits
prescribed under the Companies Act, 2013 or without the prior sanction of the Central Government, where required, he / she shall
refund such sums to the Company and until such sum is refunded, hold it in trust for the Company. The Company shall not waive
recovery of such sum refundable to it unless permitted by the Central Government.

Remuneration to Non- Executive / Independent Director:

Remuneration / Commission
The remuneration/commission shall be fixed as per the slabs and conditions mentioned in the Articles of Association of the Company
and the Companies Act, 2013 and the rules made thereunder.

Sitting Fees
The Non- Executive/Independent Director may receive remuneration by way of fees for attending meetings of Board or Committee
thereof. Provided that the amount of such fees shall not exceed Rupees One Lac per meeting of the Board or Committee or such amount
as may be prescribed by the Central Government from time to time.

Commission
Commission may be paid within the monetary limit approved by shareholders, subject to the limit not exceeding 1% of the profits of
the Company computed as per the applicable provisions of the Companies Act, 2013.

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THE ANNUAL REPORT ON CSR ACTIVITIES ANNEXURE E TO THE BOARD’S REPORT

1. A brief outline of the Company’s CSR Policy including overview of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR Policy and projects or programs.
We at Vikas EcoTech Limited consider Corporate Social Responsibility as a sense of responsibility towards the community and
environment (both ecological and social). We at Vikas EcoTech Limited as a corporate citizen have more common approach to
CSR that is corporate philanthropy. This includes monetary donations and aid given to non-profit organizations and communities.
Donations are made in areas such as the arts, education, housing, health, social welfare and the environment, among others to
carry on projects and programs for welfare of public at large.

We have determined our focus areas which include eradication of Hunger, Poverty, and Malnutrition, promotion of education,
environment stability, gender equality, women empowerment and rural development among others and are presently undertaking
our CSR initiatives through registered societies and trusts. The CSR Policy of the Company and other details on the Company’s
CSR initiatives are available at website of the Company at www.vikasecotech.com at http://vikasecotech.com/investors-corporate-
governance.aspx

2. The composition of CSR Committee.

The CSR Committee of the Company comprises of 3 Directors with majority of Non-Executive Independent Director and Chairman
is also a Non-Executive Independent Director. The Committee was initially constituted with following Directors:

Mr. Purushottam Dass Bhoot Non-Executive Independent Director Chairman

Mr. Sumer Chand Tayal Non-Executive Independent Director Member

Mr. Vikas Garg Executive Director Member

3. Average net profit of the Company for last three financial years.
(amount in `)
Average Net Profit for Preceding 3 Financial
Sr. No. Financial Year Net Profit
Year
1 2012-13 4,12,53,497/- 4,69,85,153/-
2 2013-14 3,74,73,286/-
3 2014-15 6,22,28,675/-

4. Prescribed CSR Expenditure (two percent of the amount mentioned in item 2 above): `9,39,703/-
(a) Total amount to be spent for the financial year: `9,39,703/-
(b) Amount unspent, if any: NIL
(c) Manner in which the amount spent during the financial year is detailed below.

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 finanacial REports & statements 65
(1) (2) (3) (4) (5) (6) (7) (8)
Sr. CSR project Sector in Project or Program Amount Outlay Amount spent Cumulative Amount
No. or Activity which (1) Local Area or (Budget) Project on the Projects Expenditure Spent:
Identified the project is Other or Program or Programs upto the Direct
covered (2) Specify the wise Sub Heads: reporting or through
State and district (1) Direct period Implementing
where projects Expenditure Agency
or programs was on Projects or
undertaken Programs
(2) Overheads

1. Promotion Education Local Area, Delhi/ ` Direct Exp. ` Through

of Education NCR 15,00,000/- `15,00,000/- 15,00,000/- Implementing
Agency

*Details of implementing agency: “Maharaja Agrasen Technical Education Society (Regd.)”

5. In case the Company has failed to spend the two percent of the average net profit of the last three financial years or any part
thereof, the Company shall provide the reasons for not spending the amount in its Board Report.
Not Applicable

6. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with
CSR objectives and policy of the Company.
We hereby confirm that the implementation and monitoring of the CSR Policy is in Compliance with the CSR Objectives and Policy
of the Company and in the interest of Company and public at large.

Sd/- Sd/- Sd/-

(Ashutosh Kumar Verma) (Purushottam Dass Bhoot) (Vikas Garg)
Chief Executive Officer Chairman CSR Committee Managing Director

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THE ANNUAL REPORT ON CSR ACTIVITIES ANNEXURE F TO THE BOARD’S REPORT

Information as per Section 134 (3) (m) of Companies Act, 2013 read with Companies (Accounts) Rules, 2014 and forming part of the
Board’s Report for the year ended 31st March, 2016:

CONSERVATION OF ENERGY
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: Increased 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. The company is also progressive in installation of
additional line to increase the production of Polymer and Polyester Compound at its existing plant located at Shahjahanpur, Alwar,
Rajasthan.
With a host of expansion plans, the Company is confident of achieving new heights in the coming years.

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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 `4.32 lacs (including capital and revenue expenses) towards Research
and Development.

FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year under review, expenses were incurred on import of technology, raw materials and further expenses were incurred on
foreign traveling of directors and other executives of the Company.
Earnings : `1,31,41,36,473/-
Outgo : `31,30,58,223/- (include both foreign expenses and Import purchases).

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ANNEXURE-G

FORM NO. MR-3

SECRETARIAL AUDIT REPORT

(For the financial year ended 31st March, 2016)

[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
Vikas Ecotech Limited,
(previously known as Vikas GlobalOne Limited)
Regd. Office: 34/1 Vikas Apartment,
East Punjabi Bagh, New Delhi - 11002.

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by Vikas EcoTech Limited (hereinafter called the “Company”). Secretarial Audit was conducted in a manner that provided us
a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the books, papers, minute books, forms and returns filed and other records maintained by the Company
and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial
Audit, we hereby report that in our opinion, the Company has, during the audit period ended on 31st March, 2016, complied with the
statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to
the extent, in the manner and subject to the reporting made hereinafter:

1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for
the period ended on 31st March, 2016 according to the provisions of:
I. The Companies Act, 2013 (the Act) and the Rules made thereunder;
II. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder;
III. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
IV. Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings; it may be noted that during the year under
review there was no Foreign Direct Investment, overseas Direct Investment and External Commercial borrowings.
V. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’)
to the extent applicable to the Company:-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 and SEBI (Prohibition of
Insider Trading) Regulations, 2015 as applicable from December 2015;
c. The Securities and Exchange Board of India (Share Benefits) Regulations, 2014
d. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
e. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client;
f. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and

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 finanacial REports & statements 69
g. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998. The Company has complied with the
requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (erstwhile Equity Listing
Agreements entered into with Bombay Stock Exchange Limited and National Stock Exchange of India Limited).

We have also examined compliance with the applicable clauses of the following:
i) Secretarial Standards issued by The Institute of Company Secretaries of India.
ii) The Listing Agreements entered into by the Company with the Bombay Stock Exchange Limited and National Stock Exchange of
India Limited {i.e. SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015}.
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards,
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 etc mentioned above.

2. We further report that the Company has, in our opinion, complied with the provisions of the Companies Act, 2013 and the
Rules made under that Act and the Memorandum and Articles of Association of the Company, with regard to:

Description Observation
Maintenance of various statutory registers and documents and The Company has maintained statutory registers as required under
making necessary entries therein the Act and all the entries have been properly recorded.
Closure of the Register of Members The Register of Member was closed at the time of Annual General
Meeting.
Forms, returns, documents and resolutions required to be filed The company has duly filed forms, returns with the Registrar of
with the Registrar of Companies and the Central Government Companies, Delhi and wherever there is delay the Company has paid
the additional fee.
Service of documents by the Company on its Members, Auditors Duly served
and the Registrar of Companies
Notice of Board meetings and Committee meetings of Directors Duly sent
The meetings of Directors and Committees of Directors including Duly convened
passing of resolutions by circulation
The 30th Annual General Meeting held on 30th September 2015 Duly convened
Minutes of proceedings of General Meetings and of the Board and Duly entered and signed
its Committee meetings
Approvals of the Members, the Board of Directors, the Duly obtained
Committees of Directors and the government authorities,
wherever required
Constitution of the Board of Directors / Committee(s) of Directors, Duly constituted, with proper balance of Executive, Non Executive
appointment, retirement and reappointment of Directors including and Independent Directors.
the Managing Director and Whole-time Directors
Payment of remuneration to Directors including the Managing Duly made in accordance with the approval of shareholders and
Director and Whole-time Directors Central Government.
Appointment and remuneration of Auditors and Cost Auditors; Duly made as per applicable provisions.
Transfers and transmissions of the Company’s shares and issue Duly made within prescribed time period.
and dispatch of duplicate certificates of shares
Declaration and payment of dividends Dividend of 5% i.e. 5 paise per share of `1/- was declared and paid
during the year under review.
Transfer of certain amounts as required under the Act to the Not required
Investor Education and Protection Fund and uploading of details
of unpaid and unclaimed dividends on the websites of the
Company and the Ministry of Corporate Affairs

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Borrowings and registration, modification and satisfaction of Duly complied

charges wherever applicable
Investment of the Company’s funds including investments and Duly complied
loans to others
Form of balance sheet as prescribed under Part I, form of Duly complied
statement of profit and loss as prescribed under Part II and
General Instructions for preparation of the same as prescribed in
Schedule VI to the Act
Directors’ report Duly complied
Contracts, common seal, registered office and publication of Duly complied
name of the Company; and
Generally, all other applicable provisions of the Act and the Rules Duly complied with
made under the Act.

3. We further report that:

i) The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act.
ii) Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least
seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items
before the meeting and for meaningful participation at the meeting.
iii) Majority decision is carried through while the dissenting members’ views are captured and recorded as part of the minutes.
iv) The Company has obtained all necessary approvals under the various provisions of the Act; and
v) There was no prosecution initiated and no fines or penalties were imposed during the year under review under the Act, SEBI
Act, SCRA, Depositories Act, Listing Agreement and Rules, Regulations and Guidelines framed under these Acts against / on the
Company, its Directors and Officers. However, on an application dated 11-5-2015 made by the Company for consent in respect
of for delay in listing of bonus shares, SEBI has imposed fine of `2,00,000/- for which the Company has given consent to pay
the same vide its letter dated 03-05-2016. Final orders in this respect are yet to come.
vi) The Directors have complied with the disclosure requirements in respect of their eligibility of appointment, their being independent
and compliance with the Code of Business Conduct & Ethics for Directors and Management Personnel;

4. The Company has complied with the provisions of the Securities Contracts (Regulation) Act, 1956 and the Rules made under
that Act, with regard to maintenance of minimum public shareholding.

5. I further report that the Company has complied with the provisions of the Depositories Act, 1996 and the Byelaws framed
thereunder by the Depositories with regard to dematerialization / rematerialisation of securities and reconciliation of records of
dematerialized securities with all securities issued by the Company.

6. The Company has complied with the provisions of the FEMA, 1999 and the Rules and Regulations made under that Act to the
extent applicable.

7. I further report that:

a. the Company has complied with the requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 (erstwhile Equity Listing Agreements entered into with The Bombay Stock Exchange Limited and National Stock Exchange
of India Limited)
b. the Company has complied with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares

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 finanacial REports & statements 71
and Takeovers) Regulations, 2011 including the provisions with regard to disclosures and maintenance of records required under
the said Regulations;
c. the Company has complied with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 1992 including the provisions with regard to disclosures and maintenance of records required under the said
Regulations;

I further report that

a) There are adequate systems and processes in the company commensurate with the size and operations of the Company to monitor
and ensure compliance with applicable laws, rules, regulations and guidelines.
b) Complied with the following laws specifically applicable to the Company:
i) Factories Act, 1948
ii) Pollution laws including Environment Protection Act and rules made thereunder.
iii) Labour laws
iv) The Sexual Harassment of Women at workplace (Prevention, Prohibtion and Redressal) Act, 2013. The Company has
constituted an internal complaints system.
c) The following are other observations
There is mismatch in holding of number of securities held prior to disposal of Mr. Vikas Garg, promoter while reporting in continual
disclosures as per Regulations 7 (2) of SEBI (Prohibition of Insider Trading) Regulations, 2015. As per the explanation given by
management, rectification of error is in process with their Registrar and Share Agent Alankit Assignment Ltd.
d) Legal cases
As per the information available, following is the status of legal cases pending in various Courts

Sr. Name of case Court Amount involved Status

No. (`.in lac)
1 Vikas Globalone ltd. Vs. High Court of Delhi 99.62 Case for recovery due to poor supply of Soya
ADM Agro Industries bean oil and suffering of losses by the Company
Kota and Akola Ltd. which is pending disposal.

2 ADM Agro Industries High Court of Delhi 41.15 For winding up of the Company and also filed
Kota and Akola Ltd. Vs. another summary suit for recovery of debt which
Vikas GlobalOne Ltd. is pending adjudication.

For AAA AND ASSOCIATES

Company Secretaries
Place : Delhi
Date : 02-08-2016
A.K. Popli
Partner
C.P. No. 2544
FCS: 3387

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Corporate governanace report

SEBI vide its notification No. SEBI/LAD-NRO/GN/2015-16/013 dated 2 September 2015 notified the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (hereinafter referred as ‘SEBI Listing Regulations, 2015’), which were made applicable
with effect from 1st December 2015 and repealed the erstwhile listing agreement with the stock exchanges.

This Report, therefore, states the compliance status as per requirements of Companies Act, 2013 and SEBI Listing Regulations, 2015.
Given below are the Company’s corporate governance policies and practices for 2015-16. As will be seen, Vikas EcoTech’s corporate
governance practices and disclosures have gone well beyond complying with the statutory and regulatory requirements stipulated in
the applicable laws, including SEBI Listing Regulations, 2015.

In terms of Regulation 34(3) read with Section C of SCHEDULE V to SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, a Report on Corporate Governance for the year ended March 31, 2016 is presented below:

1) A brief statement on the company’s philosophy on code of governance

This simple philosophy underlines our approach to Corporate Governance. So, if profit is our intention, how we achieve this profit
is a part of our Corporate Governance. For us, Corporate Governance goes beyond philanthropy and compliance but actually
deals with how we manage our triple bottom lines – economic, social and environmental impacts. It monitors our role as well
as the quality of our relationships in key spheres of influence including the workplace, the market place, the supply chain, the
community and the public policy realm. As a Company, we distinguish ourselves in the market by offering a portfolio of ecologically
responsible electrical products and service that deliver powerful, sustainable and energy efficient solutions that do not compromise
on capacity or security. Our eco-friendly approach is evident in our efforts to develop an alternate energy strategy so as to reduce
the environmental impact of our business. We are equally committed to managing a responsible supply chain in a manner that
is consistent and compliant with our high standards for environment and business practices. We recognize that there are barriers
that ‘constrain innovation, both in individuals and communities and we work to overcome them.’ We build communities and
promote the exchange of ideas through assistive technologies; participative programs and standardization that transforms the way
people experience our products. Our energy efficient solutions enable people to save money and protect their capital investment
while also lowering their energy usage and protecting the environment. This contributes to our CSR responsibility of sustenance
of depleting environmental resources.

Corporate Governance and Ethics

As a Company we have always worked on the side of ethics and have shunned expediency in any form. We believe that if something is
important enough to be done, it is important that we do it ethically. We supplement our traditionally held values of ethical behaviour and
moral conduct with explicit rules and regulations that guide our efforts in financial, propriety, customer care and business excellence.
We uphold the policy of “Leadership with trust” that has come to play a vital role in how our customers perceive us. This is important,
given the climate of unparalleled public distrust of people in positions of power and authority in contemporary business and politics.

2) BOARD OF DIRECTORS
The Board of Directors has an optimum combination of Executive and Non-Executive Directors with one woman director and more
than fifty per cent of the Board of Directors comprised of Non-Executive Directors. The Chairperson of the Board is a Non-Executive
Director and more than half of the board of directors is comprised of Independent Directors. The Board meets at least four times
a year and more often if Company needs merit additional oversight and guidance. During the financial year 2015-16, the time
gap between any two Board Meetings did not exceed one hundred and twenty days. The Board of Directors periodically reviews
compliance reports pertaining to all laws applicable to the Company. All statutory and other matters of significance including
information as mentioned in Part A of Schedule II to the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 are tabled before the Board to enable it to discharge its responsibility of strategic supervision of the Company.

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 finanacial REports & statements 73
a) Composition of the Board and attendance record of directors for 2015-16

Sr. Name of Directors Category Designation No. of Board Whether attended No. of Shares
No Meetings Attended last AGM held

1 Shri. Vikas Garg Promoters Managing Director 4 - 5,03,62,250

2 Shri. Vivek Garg Executive Whole-time 4 YES 10,71,550

Director

3 Shri. Ashutosh Kumar Non-Promoters Executive Whole-time 4 YES 75,000

Verma Director and CEO

4 Shri. Manoj Singhal Independent Director 3 - NIL

5 Shri. Pradip Kumar Banerji Independent Director 3 - 1,87,500

6 Shri. Sumer Chand Tayal Independent Director 3 YES 61,150

7 Shri. Jagdish Capoor Independent Director 2 - 1,87,500

8 Shri. Purushottam Dass Chairman & 4 - 40,000

Bhoot Independent Director

9 Smt. Vibha Mahajan Independent Director 1 - NIL

b) Number of other Board of Directors or Committees in which a Directors is a Member or Chairperson

Sr. Name of Directors Directorships in other Memberships of Committees Chairmanships of

No. Board of Directors of Other Boards** Committees of Other Boards

1 Shri. Vikas Garg 3 1 NIL

2 Shri. Vivek Garg 7 NIL NIL

3 Shri. Ashutosh Kumar Verma 0 NIL NIL

4 Shri. Manoj Singhal 12 NIL NIL

5 Shri. Pradip Kumar Banerji 1 3 NIL

6 Shri. Sumer Chand Tayal 1 NIL NIL

7 Shri. Jagdish Capoor 11 11 7

8 Shri. Purushottam Dass Bhoot 1 NIL NIL

9 Smt. Vibha Mahajan 1 NIL NIL

c) Number of Meeting of the Board

During the financial year 2015-16, the Board of Directors met 4 times, viz. 30th May, 2015, 12th August 2015, 26th October,
2015 and 04th February, 2016. The gap between any two meetings has been less than one hundred and twenty days.

d) Disclosure of relationships between Directors inter-se:

Shri Vikas Garg, Managing Director and Shri Vivek Garg, Whole-time Director are brothers.

e) Web link where details of familiarization programmes imparted to Independent Directors is disclosed:
All Independent Directors are familiarized with the Company, their roles, rights, responsibilities in the Company, nature of the

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industry in which the Company operates, business model of the Company, etc. from time to time. The Company makes consistent
efforts to acquaint the Board with the overall business performance covering all Business verticals, by way of presenting specific
performance of each Plant, Product Category and Corporate Function from time to time. Detailed agenda are sent well in advance
to all the Directors in order for the Board to perform its function and fulfil its role effectively.

The details regarding Independent Directors’ Familiarisation Programmes are given under the ‘Codes & Policies’ in the ‘Corporate
Governance’ section on the website of the Company and can be accessed at http://vikasecotech.com/announcement/Familiarisation%20
Programme%20for%20Independent%20Directors.pdf

3) AUDIT COMMITTEE
a) Brief description of terms of reference:
The terms of reference of the Audit Committee are as per the governing provisions of the Companies Act, 2013 (section 177) and
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (specified in Part C of Schedule II).
The role of the Audit Committee shall include the following:
1. Oversight of the company’s financial reporting process and the disclosure of its financial information to ensure that the financial
statement is correct, sufficient and credible;
2. Recommendation for appointment, remuneration and terms of appointment of auditors of the company;
3. Approval of payment to statutory auditors for any other services rendered by the statutory auditors;
4. Reviewing, with the management, the annual financial statements and auditor’s report thereon before submission to the board for
approval, with particular reference to:
a. Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in terms of
clause (c) of sub-section 3 of section 134 of the Companies Act, 2013
b. Changes, if any, in accounting policies and practices and reasons for the same
c. Major accounting entries involving estimates based on the exercise of judgment by management
d. Significant adjustments made in the financial statements arising out of audit findings
e. Compliance with listing and other legal requirements relating to financial statements
f. Disclosure of any related party transactions
g. Qualifications in the draft audit report

5. Reviewing, with the management, the quarterly financial statements before submission to the board for approval;
6. Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue,
preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document / prospectus /
notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and
making appropriate recommendations to the Board to take up steps in this matter;
7. Review and monitor the auditor’s independence and performance, and effectiveness of audit process;
8. Approval or any subsequent modification of transactions of the company with related parties;
9. Scrutiny of inter-corporate loans and investments;
10. Valuation of undertakings or assets of the company, wherever it is necessary;
11. Evaluation of internal financial controls and risk management systems;
12. Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems;
13. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and
seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
14. Discussion with internal auditors of any significant findings and follow up there on;
15. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or
irregularity or a failure of internal control systems of a material nature and reporting the matter to the board;

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16. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit
discussion to ascertain any area of concern;
17. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-
payment of declared dividends) and creditors;
18. To review the functioning of the Whistle Blower mechanism;
19. Approval of appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or
discharging that function) after assessing the qualifications, experience and background, etc. of the candidate;
20. Monitoring the end use of funds raised through public offers and related matters.
21. Carrying out any other function incidental or ancillary thereto.

b) Composition, Name of Members and Chairperson:

The Audit Committee comprises 3 (Three) Non-Executive Directors as members. All members are financially literate and possess
sound knowledge of accounts, finance and audit matters. The Company Secretary of the Company acts as Secretary to the Audit
Committee. The Statutory Auditors and Internal Auditors of the Company attend the Meetings of the Audit Committee on invitation
of the Chairman of the Committee. The Composition of Audit Committee as on 31st March, 2016, is given below:

Name of Member Category Designation Meetings Held Meeting Attended

Shri. Sumer Chand Tayal Non-Executive Independent Director Chairman 1 1
Shri. Manoj Singhal Non-Executive Independent Director Member 1 1
Shri. Purushottam Dass Bhoot Non-Executive Independent Director Member 1 1

4) NOMINATION AND REMUNERATION COMMITTEE

a) Brief description of terms of reference:
The Nomination and Remuneration Committee determines on behalf of the Board and on behalf of the Shareholders, the Company’s
policy governing remuneration payable to the Whole time Directors as well as the nomination and appointment of Directors. The
terms of reference of the Nomination and Remuneration Committee are as per the governing provisions of the Companies Act,
2013 (section 178) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

b) Composition, Name of Members and Chairperson:

The Nomination and Remuneration Committee comprises 3 (Three) Non-Executive Directors, the Chairman being Non-Executive
and Independent. The Company Secretary of the Company acts as Secretary to the Nomination and Remuneration Committee.
The Composition of Nomination and Remuneration Committee as on 31st March, 2016, is given below:

Name of Member Category Designation Meetings Held Meeting Attended

Shri. Sumer Chand Tayal Non-Executive Independent Director Chairman 4 3
Shri. Manoj Singhal Non-Executive Independent Director Member 4 3
Shri. Purushottam Dass Bhoot Non-Executive Independent Director Member 4 4

c) Performance evaluation criteria for Independent Directors:

The Nomination and Remuneration Committee of the Board, laid out the evaluation criteria for performance evaluation of the
Board, its Committees and all the individual directors, in adherence of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

The performance evaluation for the financial year was carried out in accordance with the criteria laid out by the Nomination and
Remuneration Committee and approved by the Board. The evaluation of all directors (including Independent Directors) was done by
the entire Board of Directors (excluding the Director being evaluated).

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5) REMUNERATION OF DIRECTORS
a) All pecuniary relationship or transactions of the Non-Executive Directors vis-à-vis the Company:
None, except for the Sitting Fee to Independent Directors

b) Criteria of making payments to Non-Executive Directors:

The Company has adopted a Nomination and Remuneration Policy for Directors, Key Managerial Personnel and other Employees;
regulated by the Nomination and Remuneration Committee of the Board. The Policy is also available on the website of the
Company www.vikasecotech.com in the ‘Company Policies’ section in ‘Corporate Governance’. The Non-Executive Directors,
except for promoter directors, are entitled to sitting fees for attending Meetings of the Board. The remuneration to the Managing
Director(s) and Whole-time Director(s) is paid on the scale determined by the Nomination and Remuneration Committee within
the limits approved by the Shareholders at the General Meeting.

c) Disclosures with respect to Remuneration:

i) Details of remuneration/ sitting fees paid to Directors during the financial year 2015-16 is given below:
(amount in `)
Sr. Name of Director Service Term No. of shares Sitting Salary Perks Commission Total
No held fee
1 Shri. Vikas Garg 30.09.2011- 5,03,62,250 NIL 3,60,000 2,40,000 6,00,000
30.09.2016
2 Shri. Vivek Garg 10,71,550 NIL NIL NIL
3 Shri. Ashutosh Kumar Verma 14.02.2015- 75,000 NIL 16,80,000 16,80,000
14.02.2018
4 Shri. Manoj Singhal 01.03.2015- NIL NIL NIL
29.02.2020
5 Shri. Pradip Kumar Banerji 01.03.2015- 1,87,500 63,000 63,000
29.02.2020
6 Shri. Sumer Chand Tayal 01.03.2015- 61,150 60,000 60,000
29.02.2020
7 Shri. Jagdish Capoor 01.03.2015- 1,87,500 40,000 40,000
29.02.2020
8 Shri. Purushottam Dass Bhoot 01.03.2015- 40,000 60,000 60,000
29.02.2020
9 Smt. Vibha Mahajan NIL NIL NIL

ii) Service contracts, notice period, severance fees:

The appointment of the Executive Directors is governed by Resolutions passed by the Shareholders of the Company, which cover
the terms and conditions of such appointment, read with the service rules of the Company. A separate Service Contract is not
entered into by the Company with Executive Directors. No notice period or severance fee is payable to any Director.

6) STAKEHOLDER RELATIONSHIP COMMITTEE

The terms of reference and the ambit of powers of Stakeholders Relationship Committee are as per the governing provisions of the
Companies Act, 2013 (section 178) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (specified
in Part D of Schedule II). The status of member correspondences, queries, grievances etc. are endeavoured to be addressed
instantaneously by the secretarial department and status thereof is also placed before the Stakeholders Relationship/ Grievance
Redressal Committee.

a) Name of Non-Executive Director heading the Committee:

Shri. Sumer Chand Tayal, Non-Executive Independent Director was appointed as the Chairman of the Stakeholders Relationship
Committee

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The Stakeholders Relationship Committee comprises 3 (Three) members of which, One is Non-Executive Director, the Chairman
being Non-Executive and Independent. The Company Secretary of the Company acts as Secretary to the Stakeholders Relationship
Committee. The Composition of Stakeholders Relationship Committee as on 31st March, 2016, is given below:
Name of Member Designation Meetings Held Meeting Attended
Sumer Chand Tayal Chairman 1 1
Vikas Garg Member 1 1
Vivek Garg Member 1 1

b) Name and designation of Compliance Officer:

Mr. Siddharth Agrawal Company Secretary is the Compliance Officer of the Company.

c) Number of shareholders’ complaints received so far:

The number of shareholder grievances received and resolved during financial year 2015-16 is given below:
Nature of Grievance Received Resolved Max. period of Reply (in days)
Non-receipt of dividend 3 3 10
Annual Report 6 6 10
Revalidation of Dividend 1 1 10
Total 10 10

d) Number not solved to the satisfaction of shareholders:

None, all complaints were resolved to the satisfaction of shareholders.

e) Number of pending complaints:

As at March 31, 2016, no complaint was pending unresolved.
Besides the above, the Board of Directors has CSR Committee, an Executive Committee, Compensation Committee, Equity
Warrant Committee. In respect of these Committees brief details of the role, terms of reference, composition and no. of meetings
held etc. are given below:

7) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

The Corporate Social Responsibility Committee was formed pursuant to section 135 of the Companies Act, 2013 read with
the Companies (Corporate Social Responsibility Policy) Rules, 2014, to formulate and recommend to the Board, a Corporate
Social Responsibility Policy indicating the activities to be undertaken by the Company as specified in Schedule VII to the Act, to
recommend the amount of expenditure to be incurred on such activities and to monitor the Corporate Social Responsibility Policy
of the Company from time to time. The Corporate Social Responsibility Policy of the Company is available on the website of the
Company under ‘Company Policies’ in the ‘Corporate Governance’ section.

The details of the Corporate Social Responsibility Policy of the Company have also been disclosed in the Directors’ Report section
of the Annual Report. The Corporate Social Responsibility Committee comprises 3 (Three) members of which 2 (Two) are Non-
Executive and Independent, the Chairman being Non-Executive and Independent. The Company Secretary of the Company acts
as Secretary to the Corporate Social Responsibility Committee. The Composition of Corporate Social Responsibility Committee as
on March 31, 2016, is given below:

Name of Member Designation Meetings Held Meeting Attended

Purushottam Dass Bhoot Chairman 1 1
Sumer Chand Tayal Member 1 1
Vikas Garg Member 1 1

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During the financial year 2015-16, the Corporate Social Responsibility Committee met once on December 21, 2015 and the Meeting
was attended by all the Members of the Committee.

8) EXECUTIVE COMMITTEE
The role of the Executive Committee is to expeditiously decide business matters of routine nature and implementation of strategic
decisions of the Board. The Committee functions within the approved framework and directions of the Board. The Committee also
performs other activities as per the terms of reference of the Board. The Committee comprises 3 (Three) Executive Directors. The
Company Secretary of the Company acts as Secretary to the Executive Committee. The Composition of Executive Committee as
on March 31, 2016, is given below:

Name of Member Designation Meetings Held Meeting Attended

Vikas Garg Chairman 13 13
Vivek Garg Member 13 12
Ashutosh Kumar Verma Member 13 13

During the financial year 2015-16, the Executive Committee met thirteen times.

9) COMPENSATION COMMITTEE
The role of the Compensation Committee is to expeditiously administrate ESOP’s granted to various employees of the Company.
The Committee comprises 3 (Three) Directors. The Company Secretary of the Company acts as Secretary to the Committee. The
Composition of Compensation Committee as on March 31, 2016, is given below:

Name of Member Designation Meetings Held Meeting Attended

Manoj Singhal Chairman 2 2
Sumer Chand Tayal Member 2 2
Vikas Garg Member 2 2

During the financial year 2015-16, the Compensation Committee met twice on December 21, 2015 and February 4, 2016
and the Meeting was attended by all the Members of the Committee.

10) EQUITY WARRANT COMMITTEE

The Equity Warrant Committee is authorized to convert the convertible warrants, issue and allot resultant equity shares, subject
to such conditions or modifications that may be imposed, required or suggested by the Securities & Exchange Board of India (the
SEBI), Stock Exchange(s) or other authorities and to settle all questions or difficulties that may arise with regard to the aforesaid
in such manner as it may determine in its absolute discretion and to take such steps and to do all such acts, deeds, matters and
things as may be required, necessary, proper or expedient. The Composition of Equity Warrant Committee as on March 31, 2016,
is given below:

Name of Member Designation Meetings Held Meeting Attended

Narender Kumar Garg Chairman NIL NIL
Sumer Chand Tayal Member NIL NIL
Vikas Garg Member NIL NIL

11) SUBSIDIARY COMPANIES MONITORING FRAMEWORK

The Company does not have any subsidiary as on 31st March, 2016

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12) GENERAL BODY MEETINGS
a) Location and time, where last three Annual General Meetings held:

Financial year Date Time Venue Special Resolution Passed

Friday, 11:30 A.M. Haryana Maitri Bhawan, NONE
September 27, 2013 Pitampura, New Delhi
Monday, 11:30 A.M. Haryana Maitri Bhawan, NONE
September 29, 2014 Pitampura, New Delhi
Saturday, 11.30 A.M. Haryana Maitri Bhawan, 1. Alteration of MOA and AOA as per New Companies Act,
November 1, 2014 Pitampura, New Delhi 2013
2. Increase in Authorised Share Capital.
3. Issue of Bonus Shares

Wednesday, 11.30 A.M. Haryana Maitri Bhawan, 1. Increase of Borrowing Powers of Board
September 30, 2015 Pitampura, New Delhi 2. To make investment in Foreign Company.
3. Change of Name of Company from Vikas GlobalOne
Limited to Vikas EcoTech Limited.
4. Appointment of Whole-time-Director of the Company.

No Postal Ballot was conducted during the year under review.

13) MEANS OF COMMUNICATION

a) Quarterly Results:
The Company publishes limited reviewed un-audited standalone financial results on a quarterly basis. In respect of the fourth
quarter, the Company publishes the audited financial results for the complete financial year.

b) Newspapers wherein results normally published:

The quarterly/ half-yearly/ annual financial results are published in ‘Financial Chronicle’ and ‘Awam-E-Hind’.

c) Website, where Displayed:

The financial results and the official news releases are also placed on the Company’s website www.vikasecotech.com in the
‘Investors’ section.

d) Official news releases:

Yes, the Company regularly publishes an information update on its financial results and also displays official news releases
in the ‘Investors’ section under relevant sections.

14) GENERAL SHAREHOLDER INFORMATION

a) Annual General Meeting
(Day, Date, Time and Venue)
Friday, September 30, 2016 at 11.30 a.m at Haryana Maitri Bhawan, Pitampura, New Delhi- 110027

b) Financial Year
The Financial Year of the Company starts from 1st April of a year and ends on 31st March of the following year.

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c) Dividend Payment Date

The Board of Directors of your Company has recommended a dividend of 0.05 paisa per equity share of `1/- each for the
financial year 2015-16. Date of payment of dividend would be within 30 days from October 1, 2016.

d) Name and address of each Stock Exchange(s) at which the Company securities are listed and a confirmation about
payment of annual listing fee to each of such Stock Exchange(s):
The Equity shares of the Company listed at:
BSE Limited
Phiroze JeejeeBhoy Towers, Dalal Street, Mumbai-400007
Scrip Code- 530961
National Stock Exchange of India Limited (NSE)
‘‘Exchange Plaza”, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051
Trading Symbol – VIKASECO

The listing fees for the financial year 2016-17 have been paid by the Company within the stipulated time.

e) Stock Code

NSE BSE ISIN

VIKASECO 530961 ISIN: INE806A01020

f) Stock Market Price Data - high, low during each month in last financial year:

Price details monthly High-Low as compared with broad based BSE Index
% Deli.
No. of Deliverable
Month Open High Low Close No. of Shares Total Turnover Qty to * Spread
Trades Quantity
Traded Qty
H-L C-O
Apr 15 6.27 7.34 6.15 6.37 9,13,564 1,201 59,01,628 8,49,087 92.94 1.19 0.10
May 15 6.58 7.04 5.76 6.50 9,57,510 753 61,71,436 8,29,883 86.67 1.28 -0.08
Jun 15 6.36 6.70 6.20 6.35 8,82,370 550 56,81,673 8,17,522 92.65 0.50 -0.01
Jul 15 6.40 11.45 6.35 10.80 13,14,176 4,400 1,17,80,176 8,89,608 67.69 5.10 4.40
Aug 15 10.76 16.78 10.52 13.59 32,11,280 12,677 4,26,63,689 16,29,564 50.74 6.26 2.83
Sep 15 13.64 18.28 13.00 17.19 24,87,207 10,603 3,77,16,305 12,27,135 49.34 5.28 3.55
Oct 15 17.65 23.90 16.50 17.70 82,75,145 15,797 17,10,41,917 38,79,359 46.88 7.40 0.05
Nov 15 17.50 18.90 14.70 15.60 24,95,403 7,846 4,17,52,564 8,50,521 34.08 4.20 -1.90
Dec 15 15.65 21.10 13.65 20.00 36,93,286 11,396 6,56,88,805 20,74,048 56.16 7.45 4.35
Jan 16 20.35 21.95 16.65 19.85 57,44,477 15,706 11,12,03,091 25,97,434 45.22 5.30 -0.50
Feb 16 20.35 22.90 11.55 13.10 1,67,77,158 26,104 29,24,46,505 62,62,109 37.33 11.35 -7.25
Mar 16 13.02 16.07 13.00 15.72 1,08,60,445 8,064 15,92,05,714 51,83,409 47.73 3.07 2.70

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Performance in comparison to broad based indices

NSE
Month Open High Price Low Price Close Volume
April 2015 6.20 7.60 6.15 6.45 37,47,784
May 2015 6.70 7.40 6.15 6.45 35,84,283
June 2015 6.40 6.95 6.20 6.30 22,11,171
July 2015 6.40 11.50 6.35 10.85 76,32,189
August 2015 11.00 16.80 10.50 13.60 2,20,40,195
September 2015 13.50 18.20 12.70 17.25 1,41,84,689
October 2015 17.50 23.95 16.55 17.65 2,30,53,582
November 2015 17.95 18.85 14.60 15.75 1,32,65,378
December 2015 15.80 21.00 13.55 20.05 1,48,19,886
January 2016 20.00 24.00 16.70 19.80 1,91,91,320
February 2016 19.95 25.40 11.50 13.10 6,17,58,732
March 2016 13.10 15.85 13.05 15.50 5,08,22,686

g) In case the securities are suspended from trading, the Directors Report shall explain the reason thereof: Not Applicable

h) Registrar to an Issue and Share Transfer Agents:

Alankit Assignments Limited
4E/2, Jhandewalan Extension, New Delhi-110055
Tel. No. 011-42541234, 23541234
Email; [email protected], [email protected]
Website: www.alankit.com

i) Share Transfer System

Trading in equity shares of the Company through recognized Stock Exchanges can be done only in dematerialized form. In case
of shares held in physical form, the transferred share certificates duly endorsed are despatched within 15 days from the date
of receipt of documents, provided documents are valid and complete in all respects. In compliance of the relevant provisions of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the share transfer system of the Company is audited
every six months by a Practicing Company Secretary and a certificate to that effect is issued by him/her. In case of request for
dematerialization of shares, confirmation of dematerialization is sent to the respective depository i.e. National Securities Depository
Limited (NSDL) or Central Depository Services (India) Limited (CDSL), expeditiously.

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j) Distribution of Shareholding as on March 31, 2016

Category of Share Number of Total Number of Percentage Category Holders Shares % of Total
shareholders Shares Shares
Shareholding of Promoter 15 11,69,65,446 46 Upto 5,000 3080 29,83,259 1.173
and Promoter Group
Body Corporate 310 7,55,21,826 29.71 5001-10,000 200 15,66,201 0.616
FII 5 5,09,178 0.20 10,001-20,000 177 25,60,355 1.007
Shareholders holding 53 4,14,08,897 16.29 20,001-30,000 78 19,75,139 0.777
share capital in excess of
`2 Lakhs
Others 3,466 1,98,34,328 7.80 30,001-40,000 31 11,09,226 0.436
40,001-50,000 28 13,26,583 0.522
50,001-1,00,000 70 52,81,737 2.077
Above 1,00,000 188 23,74,37,175 93.391
TOTAL 3,849 25,42,39,675 100 TOTAL 3849 25,42,39,675 100

k) Dematerialisation of Shares and Liquidity

The shares of the Company are in compulsory demat segment and are available for trading in the depository systems of both the
National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). As at 31st March, 2016,
25,14,55,288 Equity shares out of 25,42,39,675 Equity Shares of the Company, forming 98.90% of the Company’s paid-up
capital is held in the dematerialized form. Majority of demat shares are with National Securities Depository Limited. The status of
shares held in demat and physical format is given below. The Company’s shares are liquid and actively traded on the NSE and BSE.

Particulars As on March 31, 2016 As on March 31, 2015

Number of Shares Percentage Number of Shares Percentage
Shares in Demat form 25,14,55,288 98.90 25,01,64,388 98.40
NSDL 21,19,22,244 83.35 21,06,23,457 82.85
CDSL 3,95,33,044 15.55 3,95,40,931 15.55
Physical 27,84,387 01.10 40,75,287 01.60

l) Outstanding Global Depository Receipts or American Depository Receipts or Warrants or any convertible instruments, conversion
date and likely impact on equity:
There are no GDRs/ADRs/Warrants outstanding as on 31st March, 2016.

Address for Correspondence

Vikas EcoTech Limited
Vikas Apartments 34/1, East Punjabi Bagh, New Delhi-110026
PH: - +91-11-43144444
E-MAIL: [email protected]

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Plant Location
Branch Code: 1
IGC, PHASE-I, SIDCO SAMBA JAMMU & KASHMIR PIN-184121

Branch Code: 2
G-24-30, VIGYAN NAGAR, SHAHJAHAN PUR, ALWAR, RAJASTHAN PIN-301706

Branch Code: 3
F-7 & 8, VIGYAN NAGAR, SHAHJAHAN PUR, ALWAR, RAJASTHAN PIN-301706

15) OTHER DISCLOSURES

a) Disclosures on materially significant related party transactions that may have potential conflict with the interests of the
Company:
During the financial year 2015-16, there was no materially significant related party transaction that may have potential
conflict with the interests of the Company at large. For reference, the details of related party transactions in accordance with
AS–18 are given in Note No.42. Notes on Accounts of the Annual Report.
b) Details of non-compliance by the Company, penalties, strictures imposed on the Company by Stock Exchange(s) or the
board or any statutory authority, on any matter related to capital markets, during the last three years:
During the period under review, SEBI had imposed an amount of `2,00,000/- as penalty in connection with the delay in
issue of Bonus shares.
c) Details of establishment of vigil mechanism, whistle blower policy and affirmation that no personnel has been denied access
to the Audit Committee:
The Company has adopted a Whistle Blower Policy which means alert/vigilant empowering any person associated with the
organization to file a grievance if he/she notices any irregularity. No person has been denied access to the Audit Committee for
any grievance.
d) Details of compliance with mandatory requirements and adoption of the non-mandatory requirements:
The Company has fully complied with the mandatory requirements of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
e) Web link where policy for determining ‘material’ subsidiaries is disclosed:
During the period under review, the Company did not have any material Subsidiary.
f) Web link where policy on dealing with related party transactions is disclosed:
The policy on dealing with related party transactions is available on the website of the Company under ‘Corporate Governance’
in the ‘Investors’ section and can be accessed at http://vikasecotech.com/investors-corporate-governance.aspx

16) DISCLOSURE OF THE EXTENT TO WHICH THE DISCRETIONARY REQUIREMENTS AS SPECIFIED IN PART E OF SCHEDULE
II HAVE BEEN ADOPTED.
a) The Board
b) Shareholder Rights: Quarterly financial statements are published in leading newspapers and uploaded on Company’s website
www.vikasecotech.com.
c) Modified opinion(s) in audit report: The Auditors have raised no qualification on the financial statements.
d) Separate posts of Chairperson and CEO: Presently, Shri Vikas Garg is Managing Director of the Company and Mr. Ashutosh
Kumar Verma is CEO of the Company.
e) Reporting of Internal Auditor: The Company has appointed Amit Pandey & Associates as the Internal Auditors for conducting
the internal audit, representatives whereof report to the CFO and has direct access to the Audit Committee.

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17) DISCLOSURE OF COMPLIANCE OF REGULATION 17 TO 27 AND CLAUSES (B) TO (I) OF SUB REGULATION (2) OF
REGULATION 46
The Company has complied with all the mandatory requirements specified in Regulations 17 to 27 and clauses (b) to (i) of
sub–regulation (2) of Regulation 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

18) DECLARATION SIGNED BY THE CHIEF EXECUTIVE OFFICER STATING THAT THE MEMBERS OF BOARD OF DIRECTORS
AND SENIOR MANAGEMENT PERSONNEL HAVE AFFIRMED COMPLIANCE WITH THE CODE OF CONDUCT OF BOARD OF
DIRECTORS AND SENIOR MANAGEMENT.
The Company is committed to conduct its business in accordance with the applicable laws, rules and regulations and with the
highest standards of business ethics. VEL’s Code of Ethics is intended to provide guidance and help in recognizing and dealing with
ethical issues, mechanisms to report unethical conduct, and to help foster a culture of honesty and accountability. The Board has
adopted a Code of Conduct for Directors, Senior Management and other Employees of the Company. The Code is available on the
website of the Company under ‘Code of Conduct’ in the ‘Corporate Governance’ section.

19) COMPLIANCE CERTIFICATE FROM EITHER THE AUDITORS OR PRACTICING COMPANY SECRETARIES REGARDING
COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCE:
The Certificate from the Statutory Auditors of the Company regarding compliance of conditions of corporate governance is annexed
with the Directors’ Report and forms an integral part of the Annual Report.

20) DISCLOSURES WITH RESPECT TO DEMAT SUSPENSE ACCOUNT/ UNCLAIMED SUSPENSE ACCOUNT:
The Company does not have any shares in the demat suspense account or unclaimed suspense account.

OTHER USEFUL INFORMATION FOR SHAREHOLDERS

ECS Facility:
The Company provides facility of “Electronic Clearing Service” (ECS) for payment of dividend to its shareholders. ECS facility assists in
quick remittance of dividend without possible loss/delay in postal transit. Shareholders holding shares in physical form are requested to
provide details of their bank account for availing ECS facility. However, if the shares are held in dematerialized form, the ECS mandate
has to be communicated to the respective Depository Participant (DP). Changes, if any, in the details furnished earlier may also be
communicated to the Company or DP, as the case may be.

Update E-mails for receiving notice/ documents in e-mode:

The Ministry of Corporate Affairs (MCA) has through its circulars issued in 2011, allowed service of documents by companies including
Notice calling General Meeting(s), Annual Report etc. to their shareholders through electronic mode. This green initiative was taken by
MCA to reduce paper consumption and contribute towards a green environment. As a responsible corporate citizen, your Company fully
supports the MCA’s endeavour.

In accordance of the same, your Company had proposed to send Notice calling General Meetings, Annual Report and other documents
in electronic mode in future to all the shareholders on their email addresses. It was also requested to inform the Company in case the
shareholders wish to receive the above documents in physical form. Accordingly, the Annual Report along with Notice will be sent to the
shareholders in electronic mode at their email addresses.

The shareholders who have not registered their email addresses with the Company are requested to kindly register their e-mail addresses
with the Company in the Form annexed with the Notice of Annual General Meeting enabling the Company to better service shareholder
correspondence through e-mode. The shareholders have also an option to register their email addresses with their Depository through
Depository Participant.

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 finanacial REports & statements 85
Dematerialization of Shares:
Equity Shares of the Company are under compulsory demat trading segment. Considering the advantages of scrip less trading, members
are advised to consider dematerialization of their shareholding so as to avoid inconvenience involved in the physical shares such as
mutilation, possibility of loss/ misplacement, delay in transit etc. and also to ensure safe and speedy transaction in securities.

Transfer / Transmission / Transposition of Shares:

The Securities and Exchange Board of India (SEBI), vide its Circular No. MRD/DoP/Cir-05/2009 dated May 20, 2009 and Circular
No. MRD/DoP/SE/RTA/Cir-03/2010 dated January 7, 2010 made it mandatory that a copy of the PAN Card is to be furnished to the
Company in the following cases:
 registration of physical transfer of shares;
 deletion of name of deceased shareholder(s) where shares are held jointly in the name of two or more shareholders;
 transmission of shares to the legal heirs where shares are held solely in the name of deceased shareholder; and
 transposition of shares where order of names of shareholders are to be changed in the physical shares held jointly by two or more
shareholders.

CEO’S/CFO’S CERTIFICATE

We, Ashutosh Kumar Verma, Whole-time Director and CEO and Pankaj Kumar Gupta, CFO of Vikas EcoTech Limited, to the best of our
knowledge and belief, certify that:
a. We have reviewed the financial statements and the cash flow statement for the year ended 31st March, 2016 and that to the best
of our knowledge and belief :
i. these statements do not contain any materially untrue statement or omit any material fact or contain statements, that might
be misleading;
ii. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting
standards, applicable laws and regulations.

b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company’s code of conduct.

c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting and we have disclosed, to the auditors and
the Audit Committee, wherever applicable, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.

d. We have indicated to the auditors and the Audit Committee, wherever applicable,
i. significant changes in internal control over financial reporting during the year;
ii. significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial
statements; and
iii. instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or any
employee having a significant role in the Company’s internal control system over financial reporting.

For Vikas EcoTech Limited For Vikas EcoTech Limited

(Ashutosh Kumar Verma) (Pankaj Kumar Gupta)
New Delhi, August 08, 2016 Chief Executive officer Chief Financial officer

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 86 finanacial REports & statements

AUDITOR’S CERTIFICATE

To
The Members of Vikas EcoTech Limited

We have examined the compliance of conditions of corporate governance by Vikas EcoTech Limited, for the year ended on 31st
March, 2016, as stipulated in Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 pursuant to the Listing Agreement of the said Company with stock exchange(s).

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limited to procedures
and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is
neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated in the provisions as specified in Chapter IV of Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 pursuant to the Listing Agreement of the said Company
with stock exchange(s).

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

For AAA & ASSOCIATES Company Secretaries

Place of Signature: New Delhi
Date: 08.08.2016 Sd/-

(A.K.Popli)
Partner
C.P. No. 2544

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 finanacial REports & statements 87
INDEPENDENT AUDITOR’S REPORT

To
The Members of
Vikas Ecotech Limited.
New Delhi

Report on the Financial Statements

1. We have audited the accompanying Financial Statements of M/s Vikas Ecotech Limited (“the Company”), which comprise the
Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and
a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including
the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014( as
amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the
Act, safeguarding the assets of the Company; preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit.
4. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the Auditor’s Report under the provisions of the Act and the Rules made there under.
5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control
relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and
the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of
the financial statements.
7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
financial statements.

Opinion
8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements
give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting

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 88 finanacial REports & statements

principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows
for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure- A, a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.

10. As required by section 143(3) of the Act, we report that:

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
b. in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
c. the financial statements dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 ( as amended);
e. On the basis of written representations received from the directors as on March 31, 2016 and taken on the Board of Directors,
none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164(2) of
the Act.
f. We have also audited the internal financial controls over financial reporting of the Company as of March 31, 2016 in
conjunction with our audit of the financial statements of the Company for the year ended on that date and our report dated
23rd May 2016 as per Annexure-B expressed an unqualified opinion; and
g. in our opinion and to the best of our information and according to the explanations given to us, we report as under with respect
to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer to
Note No 32)
ii. The Company did not have any long-term contracts including derivative contracts; as such the question of commenting
on any material foreseeable losses thereon does not arise (Refer to Note No 46); and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company.

For R S P H & Associates

Chartered Accountants
FRN - 003013N
Place: New Delhi
Date: 23.05.2016
(C A. Tarun Kumar Batra)
Partner
Membership No - 094318

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 finanacial REports & statements 89
Annexure –“A” to the Independent Auditor’s report of even date to the members of M/s Vikas Ecotech Limited
(“the Company”) on the financial statements for the year ended March 31, 2016
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Report on the matters required by the Companies (Auditor’s Report) Order, 2016, issued by the Central
Government of India in term of sub-section 11 of section 143 of the Companies Act, 2013.

(i) In respect of Fixed Assets :

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, fixed assets, according to the practice of the Company, are physically verified by the management at
reasonable intervals, in a phased verification programme, which in our opinion, is reasonable, looking to the size of the
company and the nature of its business. According to the information and explanation given to us by the Management, no
material discrepancies were noticed on such verification.
c) The Title deeds of immovable properties are held in the name of the company.

(ii) In respect of Inventory :

a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification
is reasonable.
b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation
to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper
records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not
material.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or
other parties covered in the register maintained under section 189 of the Act. Accordingly, clauses 3(iii) (a), 3(iii) (b) and 3(iii)
(c) of the Order are not applicable to the Company.

(iv) The Company has not given any loans or made any investments or provided any guarantees and security covered under Section
185 and 186 of the Act. Accordingly, the provisions of Clause 3(iv) of the Order are not applicable.

(v) The Company has not accepted any deposits within the meaning of sections 73 to 76 of the Companies Act’ 2013 and the
Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not
applicable.

(vi) We have broadly reviewed the books of accounts maintained by the company pursuant to the Rules made by the Central
Government for the maintenance of cost records under section 148(1) of the Companies Act’ 2013 and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the
Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund,
Employee’s State Insurance Fund, income tax, sales tax, service tax, duty of customs, value added tax, cess and other material
statutory dues have been deposited during the year by the Company with the appropriate authorities but delay in deposit of the
same has been observed in some of the cases. Further it has been observed that the company has not deposited the Employees
State Insurance Act’ 1948 ( ESI) and Provident fund of two of its units i.e of Bawana and Sitarganj Units.

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 90 finanacial REports & statements

(b) According to the information and explanations given to us, no other undisputed amounts payable in respect of provident fund,
income tax, sales tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as
at March 31, 2016 for a period of more than six months from the date they became payable Except ESI of `24,699/- and PF of
`97,316/- of Sitarganj Unit and ESI of `34,149/- and PF of `1,34,548/- of Bawana and except as stated hereunder for which
appeals are pending :-

Nature of Statute Period to which Nature of Dues Amount Forum where dispute is pending
amount relates (in `)

Income Tax Act Income Tax demand 31,44,000/- ITAT, Delhi

Custom Act Custom Duty Demand 5,33,266/- Custom Authorities, Rajasthan

VAT Vat Demand 88,000/- VAT Authorities, Jammu

VAT Vat Demand 90,67,107/- Special Commissioner department of trade

and taxes, Rajasthan

Income Tax Act Assessment Year Income Tax Demand 27,64,140/- Commissioner of Income Tax Appeal – IX,
2012-13 Delhi

Income Tax Act Assessment Year Income Tax Demand 4,02,480/- Commissioner of Income Tax Appeal – IX,
2013-14 Delhi

Income Tax Act* Assessment Year Income Tax Demand of 38,53,030/- Commissioner of Income Tax Appeal – XIV,
2012-13 Sigma Plastic Industries Delhi

Income Tax Act* Assessment Year Income Tax Demand of 7,08,640/- Commissioner of Income Tax Appeal – XIV,
2013-14 Sigma Plastic Industries Delhi

Excise * Excise Duty Refund ( 31,24,983/- CESTET ( Delhi )

Sigma Plastic Industries)

Excise Excise Duty Refund 4,09,226/- CESTET ( DELHI)

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

(c) According to the information and explanations given to us, there has not been an occasion in case of the Company during
the year under report to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in
transferring such sums does not arise.
(viii) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion
that the company has not defaulted in repayment of loans or borrowings to any financial institution or a bank or any dues to
debenture-holders during the year.
(ix) As per information & explanations given by the Company, monies raised by way of Initial Public Offer or further public offer
(including debt instruments) and Term Loan have been applied for the purpose for which they were raised.
(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period
covered by the audit.
(xi) As per information & explanations given to us, the Company has paid or provided managerial remuneration in accordance
with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013
(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not
applicable.

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 finanacial REports & statements 91
(xiii) In our opinion and according to information and explanations given to us, all transactions with the related parties are in
compliance with sections 177 and 188 of the Act where applicable and the requisite details have been disclosed in the
financial statements as required by the applicable accounting standards.
(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures. Accordingly, the provisions of clause 3(xiv) of the order are not applicable.
(xv) During the year, the Company has not entered into any non-cash transactions with directors or persons connected with them.
Accordingly, the provisions of clause 3(xv) of the Order are not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For R S P H & Associates

Chartered Accountants
FRN:- 003013N
Place: New Delhi
Date: 23.05.2016
(CA. Tarun Kumar Batra)
Partner
Membership No: 094318

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 92 finanacial REports & statements

Annexure “B” To The Independent Auditor’s Report Of Even Date To The Member of M/s Vikas Ecotech Limited On
The Standalone Financial Statements for the year ended 31st March 2016
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Independent Auditor’s Report on the Internal Financial Controls under section 143(3)(i) of the Companies Act, 2013
(“the Act”)

1. In conjunction with our audit of the standalone financial statements of M/s VIKAS ECOTECH LIMITED (“the Company”) as of and
for the year ended March 31, 2016, we have audited the Internal Financial Controls over Financial Reporting (IFCoFR) of the
Company as of that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Director is responsible for establishing and maintaining internal financial controls based on the Internal
Control over Financial Reporting (IFCoFR) criteria established by the Company considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (IFCoFR) (“the Guidance
note”) issued by the Institute of Chartered Accountants of India”. These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of
the Company’s business, including adherence to Company’s policies, safeguarding of its assets, prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information,
as required under the Act.

Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s Internal Financial Controls over Financial Reporting (IFCoFR)
based on our audit. We conducted our audit in accordance with the Standards on Auditing, Issue by the ICAI and deemed to be
prescribed under section 143(10) of the Act, to the extent applicable to an audit of Internal Financial Controls over Financial
Reporting (IFCoFR), and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate Internal
Financial Controls over Financial Reporting (IFCoFR) were established and maintained and if such controls operated effectively in
all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the Internal Financial Controls over
Financial Reporting (IFCoFR) and their operating effectiveness. Our audit of Internal Financial Controls over Financial Reporting
(IFCoFR) included obtaining an understanding of Internal Financial Controls over Financial Reporting (IFCoFR), assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
Company’s Internal Financial Controls over Financial Reporting (IFCoFR).

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s Internal Financial Control over Financial Reporting (IFCoFR) is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s Internal Financial Control over Financial Reporting (IFCoFR) includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

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 finanacial REports & statements 93
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of Internal Financial Controls over Financial Reporting (IFCoFR), including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the Internal Financial Controls over Financial Reporting (IFCoFR) to future periods
are subject to the risk that the Internal Financial Control over Financial Reporting (IFCoFR) may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion
In our opinion, the company has, in all material respects, adequate Internal Financial Control over Financial Reporting (IFCoFR)
and such (IFCoFR) were operating effectively as of 31 March 2016, base on the Internal Financial Control over Financial Reporting
(IFCoFR) criteria established by the Company considering the essential components of internal control stated in the guidance note
issued by the ICAI.

For R S P H & Associates

Chartered Accountants
FRN:- 003013N
Place: New Delhi
Date: 23.05.2016
(CA. Tarun Kumar Batra)
Partner
Membership No: 094318

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 94 finanacial REports & statements

Balance Sheet as at March 31, 2016 Amount in `
Note No. As at March 31, 2016 As at March 31, 2015
EQUITY AND LIABILITIES
Shareholder's funds
Share capital 2 25,42,39,675 25,42,39,675
Reserves and surplus 3 40,81,98,910 17,86,59,918
Money received against share warrants – –
66,24,38,585 43,28,99,593
Share application money pending allotment

Non-current liabilities
Long-term borrowings 4 9,70,80,604 7,48,19,041
Deferred tax liabilities (Net) 5 - 68,562
Other long term liabilities 6 8,75,622 16,68,685
Long-term provisions 7 - -
9,79,56,226 7,65,56,288
Current liabilities
Short-term borrowings 8 81,47,20,370 58,69,85,296
Trade payables 9 44,89,41,279 31,43,71,473
Other current liabilities 10 10,51,47,892 2,49,29,267
Short-term provisions 7 14,77,52,520 3,68,24,771
1,51,65,62,061 96,31,10,807
Total 2,27,69,56,872 1,47,25,66,688
ASSETS
Non-current assets
Fixed assets 11 27,90,26,018 21,02,06,995
Tangible assets
Intangible assets
Capital work-in-Progress
Intangible assets under development

Non-current investments 12 3,86,179 3,55,046

Deferred tax assets (net) 5 17,14,757
Long-term loans and advances 13 17,85,674 34,23,533
Other non-current assets 14 – –
28,29,12,628 21,39,85,574
Current assets
Current investments
Inventories 15 37,54,55,547 27,89,60,641
Trade receivables 16 1,40,63,62,596 74,75,47,944
Cash and cash equivalents 17 4,39,87,768 6,58,37,193
Short-term loans and advances 13 16,73,37,787 16,38,79,374
Other current assets 18 9,00,546 23,55,962
1,99,40,44,244 1,25,85,81,114
Total 2,27,69,56,872 1,47,25,66,688
NOTES TO ACCOUNTS: forming part of Financial Statement 1 – 55
As per our report of even date attached The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.
For R S P H AND ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants VIKAS GARG SUMER CHAND TAYAL
(FRN: 003013N) (MANAGING DIRECTOR) (DIRECTOR)
00255413 00255661

Place: NEW DELHI SIDDHARTH AGRAWAL ASHUTOSH KUMAR VERMA PANKAJ KUMAR GUPTA
Date: May 23, 2016 (COMPANY SECRETARY) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

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 finanacial REports & statements 95

Statement of Profit and loss for the year ended March 31, 2016
Amount in `
Note No. As at March 31, 2016 As at March 31, 2015
Revenue
Revenue from operations 19 3,23,45,49,618 2,21,26,42,831
Less: Excise duty (16,30,29,478) (10,24,88,190)
Net Sales 3,07,15,20,140 2,11,01,54,641
Other income 20 4,83,09,132 3,70,70,306
Total revenue 3,11,98,29,272 2,14,72,24,947
Expenses
Cost of material Consumed 21 1,72,93,91,614 1,24,50,74,345
Purchase of stock-in-trade 22 66,74,28,985 49,42,21,506
Changes in inventories 23 (2,45,16,179) 2,09,09,438
Employee benefit expenses 24 3,27,79,336 3,71,72,085
Finance costs 25 11,33,53,541 10,71,12,968
Depreciation and amortization expenses 26 3,37,07,715 3,41,80,113
Other expenses 27 17,67,28,985 14,41,43,788
Total expenses 2,72,88,73,997 2,08,28,14,243
Profit before exceptional, extraordinary and prior period items 39,09,55,275 6,44,10,704
and tax
Exceptional items
Profit before extraordinary and prior period items and tax 39,09,55,275 6,44,10,704
Extraordinary items
Prior period item 16,11,579 (21,82,029)
Profit before tax 39,25,66,854 6,22,28,675
Tax expenses
Current tax 13,24,36,448 1,24,50,558
Mat Credit Availed 27,24,857 92,00,052
Deferred tax (17,83,319) (36,43,842)
Excess/short provision relating earlier year tax 38,46,649 63,63,547
Profit (Loss) for the period from continuing operations 25,53,42,219 3,78,58,361
Profit (Loss) from discontinuing operations
Tax expenses of discontinuing operations
Profit (Loss) from discontinuing operations (after tax)
Profit (Loss) for the period 25,53,42,219 3,78,58,361
Share earnings From Partnership Firm – –

Profit (Loss) for the period 25,53,42,219 3,78,58,361

Earning per share
Basic 43 1.00 0.15
Diluted 43 1.00 0.15
SIGNIFICANT ACCOUNTING POLICIES 1

As per our report of even date attached The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

For R S P H AND ASSOCIATES For and on behalf of the Board of Directors

Chartered Accountants VIKAS GARG SUMER CHAND TAYAL
(FRN: 003013N) (MANAGING DIRECTOR) (DIRECTOR)
00255413 00255661

Place: NEW DELHI SIDDHARTH AGRAWAL ASHUTOSH KUMAR VERMA PANKAJ KUMAR GUPTA
Date: May 23, 2016 (COMPANY SECRETARY) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

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 96 finanacial REports & statements

Cash flow statement for the period ended on March 31, 2016
PARTICULARS For the period ended on For the period ended on
March 31, 2016 March 31, 2015
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit (loss) before extraordinary items and Tax 39,25,66,854 6,22,28,676
Adjustments for:
Depreciation 3,37,07,715 3,35,95,820
Amortization - 5,84,293
Fixed Assets Written-off 18,00,150 -
ESOP Amortization (1,05,03,337) 18,55,716
Interest on Income Tax - 3,17,229
Interest expenses 11,33,53,541 10,71,12,968
Profit on sale of Investment - (1,88,23,854)
Profit/Loss on sale of Tangible Asset 13,808 (4,125)
Interest on current investments (33,01,543) (32,61,658.03)
Operating Profit (Loss) before working capital changes 52,76,37,188 18,36,05,064
Adjustments for:
(Increase)/Decrease in inventories (9,64,94,906) (4,04,75,034)
(Increase)/Decrease in trade receivables (65,88,14,652) (20,90,89,799)
(Increase)/Decrease in other current assets 14,55,416 (8,70,106)
(Increase)/Decrease in loans and advances (34,58,412) 1,13,75,563
Increase/(Decrease) in trade payables 13,45,69,806 7,63,48,056
Increase/(Decrease) in other liabilities 8,02,18,626 (12,38,86,915)
Increase/(Decrease) in provisions (19,876) 36,058
Cash generated from operations (1,49,06,810) (10,29,57,113)
Direct taxes (paid)/refunded (2,65,07,360) (1,26,96,575)
Net Cash flow from (used) in operating activities (4,14,14,170) (11,56,53,688)
B.CASH FLOW FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets (10,48,05,996) (3,39,27,103)
Net effect of invest in Sigma Plastic - 1,85,05,845
Sale of Investment (Moonlite Technochem Pvt Ltd) - 5,35,34,190
Sale of tangible fixed assets 4,65,300 5,000
Other interest received 33,01,543 45,42,372
Long term loans and advances 16,37,859 (3,52,381)
Other Non-current activities net (17,45,890) 5,70,252
Net cash flow from (used) in investing activities (10,11,47,184) 4,28,78,175
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from short term borrowings 22,77,35,074 19,03,32,725
Proceeds from Long term borrowings 2,22,61,563 5,66,25,184
Interest Paid on bank borrowings (11,33,53,541) (10,71,12,968)
Share Capital - -
Other Long-term liabilities (7,93,063) 2,92,445
Dividend paid (1,27,11,984) (50,84,794)
Dividend distribution tax paid on equity shares (24,26,119) (8,64,161)
Net cash flow from (used) in financing activities 12,07,11,929 13,41,88,431
Net increase (decrease) in cash and cash equivalents (2,18,49,425) 6,14,12,919
Cash and Cash Equivalents at the beginning of the year 6,58,37,193 44,24,274
Cash and Cash Equivalents at the end of the year 4,39,87,768 6,58,37,193
As per our report of even date attached The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

For R S P H AND ASSOCIATES For and on behalf of the Board of Directors

Chartered Accountants VIKAS GARG SUMER CHAND TAYAL
(FRN: 003013N) (MANAGING DIRECTOR) (DIRECTOR)
00255413 00255661

Place: NEW DELHI SIDDHARTH AGRAWAL ASHUTOSH KUMAR VERMA PANKAJ KUMAR GUPTA
Date: May 23, 2016 (COMPANY SECRETARY) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

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NOTE 1:

Background and Nature of Operations

Vikas Ecotech Limited (VEL) (Formally known as Vikas Globalone Limited) is a Delhi based professionally managed Company incorporated
on November 30, 1984 under the Companies Act, 1956, having its registered office at Vikas Apartments, 34/1, East Punjabi Bagh,
New Delhi-110026 and is actively engaged in the business of Manufacturing and Distribution of Specialty Polymers Compounds and
Additives. The Company is listed in National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

The Company is engaged in the business of manufacturing and distribution of high end products used in Agricultural Pipes, Auto Parts,
Wires and Cables, Artificial Leather, Footwear, Organic Chemicals, Polymers, Pharmaceuticals and Packaging industries while alongside
acting as distributor of global conglomerates with niche in specialty chemicals and polymers.

Manufacturing plants of the Company are spread in various geographical locations across India, in the state of J&K and Rajasthan. This
has been done keeping in mind the Strategic and Location advantages with regard to availability of raw material, tax incentives, subsidy
grants as well as market potential for finished goods. These industrial units have speedy connectivity to Road, Rail and Air transport.
The Company has built the plants with the best of the machineries and technical knowhow available from the world’s leading suppliers.
The manufactured products of the Company have been well received in the market and have further scope of greater development with
increased production capacities. The products manufactured by the Company are environmental friendly.

Summary of Significant Accounting Policies

The significant accounting policies adopted by the Company, in respect of the financial statements are set out below.

Basis of Presentation: These financial statements have been prepared in accordance with the generally accepted accounting principles
in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material
aspects with the accounting standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014
& other relevant provisions of the Companies Act, 2013 & guidelines issued by the SEBI. The accountings policies have been consistently
applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard require a
change in the accounting policy hitherto in use.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are
based upon management’s best knowledge of current events and actions, actual results could differ from these estimates. Hence, the
differences between the actual results and estimates are recognized in the year in which the results are known/materialized.

Inventories:
i) Raw Material/Trading is valued at lower of cost OR net realizable value.
ii) Finished products are valued at lower of cost OR net realizable value. Cost being the weighted average material cost & includes cost
of conversion & other cost incurred in bringing the goods to their present location & condition. Closing balance of finished stock are
accounted for on the basis of physically verified quantities.
iii) Packing Material, stores & spares parts are valued at lower of moving weighted average cost and net realizable value.
iv) Inventory on construction activities has been valued at cost incurred.

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v) Obsolescence: Obsolete, slow moving & defective inventories are identified at the time of physical verification of inventories &
wherever necessary provision is made for such inventories.
vi) Shortage/Excess of Packing Material, Stores & spares parts and finish goods arising from physical verification are charged/adjusted
to consumption/production.

Prior Period Items: Significant items of Income and Expenditure which relates to prior accounting period are accounted in the statement
of profit and loss under the head “prior period expenses/income” other than those occasioned by events occurring during or after the close
of the year and which are treated as relatable to the current year.

Fixed Assets, Impairment: Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment of losses if any.
The Company capitalizes all direct costs relating to the acquisition and installation of fixed assets. Advances paid towards the acquisition
of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready to use before such date are disclosed under
‘Capital Advances’.

Depreciation and Amortization:

 Depreciation on tangible asset is provided on Written Down Value Method (WDV) over the useful lives of assets estimated by the
management. Depreciation on asset purchased/sold during the period is proportionately charged. Intangible assets are amortized
over their respective individual estimated useful lives on Straight Line Basis, commencing from the date the asset is available to the
Company for its use. The management estimates the useful lives for the fixed assets as follow:
• Building Office 60 Years
• Building Factory 30 Years
• Plant and Machinery 15 Years
• Office Equipment 5 Years
• Furniture and fixture 10 Years
• Electricity Fitting and Installation 10 Years
• Vehicles
• Motor cycles, scooters 10 Years
• Motor cars 8 Years
• Computers 3 Years
• Lease Hold Land Remaining useful live As per lease agreement

 Depreciation and amortization methods, useful lives and residual values are reviewed predictably including at each financial
year end.

Impairment:
At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or
external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such
recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount
is reduced to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value at the
weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining
useful life. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If, at the balance sheet date there
is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected
at the reassessed recoverable amount. Impairment losses previously recognized are accordingly reversed.

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Investments: Investments are classified as long term or current investments. Long term investments are stated at cost and provision for
diminution in their value, other than temporary, is recorded in the books of account. Current investments are stated at the lower of cost
or fair value. 100% Provision has been made in case the realizable value is uncertain.

Revenue recognition: Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured.
 Sale of goods: Revenue from sale of goods is recognized when significant risks and rewards of ownership of goods are transferred
to the customers. Sales are net of sales return, free quantities delivered and trade discounts.
 Interest: Interest income from deposits and others is recognized on accrual basis (i.e. time proportion basis).
 Construction Contract: The Company follows complete contract method of accounting in respect of its construction activity. Under
this method, the profit on unit sold is recognized only when the work in respect of the relevant unit is completed or substantially
completed which is determined on technical estimations and the underlying sale deed is executed.
 Profit on sale of Investment: Profit on sale of investment is recognized on the date of transaction of sale and is computed with
reference to the cost of investments.
 Other Revenue Receipts: Other revenue receipts are recognized on accrual basis (i.e. time proportion basis).

Borrowing Costs: Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as part
of cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue in the year in which they are incurred.

Earnings Per Share: Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. The
Weighted average no of Equity shares outstanding during the year after adjusted for the events of bonus issue element in a right issue
to equity shareholders, share split and reserve share split (consolidation of shares).

Operating Leases: Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified
as operating leases. Lease payments under operating leases are recognized as an expense on a straight-line basis over the lease term
in accordance with Accounting Standard 19 (AS 19) - Leases as notified under the Companies (Accounting Standards) Rules, 2006,
as amended.

Cash & Cash Equivalent: Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.

Cash Flow Statement: Cash Flows are reported using indirect method, whereby profit before tax is adjusted for efforts of transactions
of non cash nature and any deferral or accruals of any past or future cash receipts or payments. The Cash Flows from regular revenue
generating, financing and investing activity of the Company segregated.

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Employees’ Retirement Benefits:

 Short Term Employee Benefits
Short Term Employee Benefits are recognized as Expenditure in the profit and loss accounts of the year in which the related services
are rendered.

 Post Employment Benefits

 Defined Contribution Plans

Contribution payable by the Company to the Central Government authorities in respect of Provident fund, Family Pension fund and
Employee State Insurance are defined plans. These contributions are recognized as expenses in the statement of Profit and Loss
during the period in which the employee renders the related services. The Company does not have any further obligation in this
respect beyond such contribution.

 Defined Benefit Plans

The Company provides for gratuity the liability with regard to gratuity plan are determine by Actuarial Valuation, performed by
an independent Actuary at each balance sheet date. Gratuity are covered under the Gratuity Policy respectively, of Life Insurance
Corporation of India (LIC).The Present Value of the Obligation is determined by using projected unit Credit method. Actuarial Gains
and Loss rising on such valuation are recognized immediately in the profit and loss account.

Taxes on Income: Tax expense comprises of current tax and deferred tax.

Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax
Act 1961. Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial
statement income and taxable income for the year. The effect on deferred tax assets and liabilities of a change in tax rates is recognized
in income using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier periods
are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against
which deferred tax assets can be realized.

Provisions, Contingent Liabilities and Contingent Assets: Provisions are recognized only when there is a present obligation, as a result
of past events, and when a reliable estimate of the amount of obligation can be made. Provisions are not discounted to its present value
and are determined based on management estimate required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current management estimates. Contingent liability is disclosed for:
i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or,
ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never
be realized.

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Foreign Currency Transactions:

i) Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between
the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount.

ii) Conversion: Foreign currency monetary items are converted to reporting currency using the closing rate. Non monetary items
denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the
transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated in a foreign currency
is reported using the exchange rates that existed when the values were determined.

iii) Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting Company’s monetary
items at rates different from those at which they were initially recorded, are recognized as income or expense in the year in which
they arise except those arising from investments in non-integral operations.

iv) Forward Exchange Contract: In case of forward Exchange contract, difference between the forward rates and the exchange rate
on the date of transaction is recognized as expenses or income over the life of the contract. Exchange difference on such contract
is recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on
cancellation or renewal of forward exchange contract is recognized as income or expenses for the year.

Government Grants: Government grants are recognized when there is reasonable assurance that the group will comply with the
condition attaching to them and grants will be received. Revenue grants are recognized in the statement of Profit and loss account.
Capital grants relating to Specific Fixed Assets are reduced from gross value of respectively fixed assets and other grant are credited to
capital reserve account.

Employee Stock Option Scheme: The Company account for Equity Settled Stock Options as per accounting treatment prescribed by
Securities and Exchange Board of India (Share Based Employee Benefits) Regulations 2014 and the guidance note on the Employees
Share-Based Payments issued by the Institute of Chartered Accountant of India using the intrinsic value method. Earlier scheme was
formulated under the guidelines issued by SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines
1999.

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Note No. 2 Share Capital

Amount in `
PARTICULARS As at 31st March 2016 As at 31st March 2015
Authorised :
26,00,00,000 Equity shares of `1/- par value 26,00,00,000 26,00,00,000
Issued :
25,42,39,675 Equity shares of `1/- par value 25,42,39,675 25,42,39,675
Subscribed and paid-up :
25,42,39,675 Equity shares of `1/- par value 25,42,39,675 25,42,39,675
Total 25,42,39,675 25,42,39,675

Reconciliation of the Shares outstanding at the beginning and at the end of the reporting period

Amount in `
Equity Shares As at March 31, 2016 As at March 31, 2015
No. of Shares Amount No. of Shares Amount
At the beginning of the period 25,42,39,675 25,42,39,675 10,16,95,870 10,16,95,870
Issued during the Period (Bonus Issue) - - 15,25,43,805 15,25,43,805
Redeemed or bought back during the period - - - -
Outstanding at end of the period 25,42,39,675 25,42,39,675 25,42,39,675 25,42,39,675

Details of Shareholders holding shares more than 5% shareholding

As at March 31, 2016 As at March 31, 2015

No of Shares % No of Shares %
Vikas Garg 5,03,62,250 19.81% 5,33,62,250 20.99%

*Vikas Polymer Land Pvt Ltd (The company

Vikas Polymer Land Pvt Ltd is now Merged - - 3,03,24,075 11.93%
with Moonlite Technochem Pvt Ltd)
*Moonlite Technochem Pvt Ltd* 4,32,21,141 17.00% - -
Athena Multitrade Pvt. Ltd. (Formerly known as
2,04,31,500 8.04% 2,97,96,000 11.72%
Goodlife Impex Private Limited)

Right, Preferences and Restriction attached to Shares

Equity Shares
The Company has only one class of Equity having a par value `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.

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Employee’s Stock Option Scheme

The Company formulated an Employee’s Stock Option Scheme as per Note No. 45 during the financial year 2012-13. The Scheme
provides that Employees are granted options to acquire the Equity Shares of the Company that vests in graded manner. The options may
be exercised within a Specified Period. The options are granted at `1 (i.e. Par Value of Share). The final trench Employee Stock Options
granted by the Company pursuant to its ESOP Scheme, 2011, lapsed on December 1, 2015, no employee opted for ESOP during the
year under consideration, therefore there is no allotment of share on account of ESOP during the current financial year.

PARTICULARS NO OF OPTIONS
Options Granted 36,95,000
Pricing Formula Face Value
Options Outstanding, beginning of the Year 17,31,500
No of Options given to Employees in Third year (40% of total no of options) 10,46,000
Less-No of Options Exercised by Employees Nil
No of Options Lapsed during the period 27,77,500
Options Outstanding, end of the year NIL

*The Company Vikas Polymer Land was merged with company Moonlite Technochem Pvt Ltd in Financial Year 2015-16 with effect from April 1,
2014, by virtue of this merger, all assets and liabilities of Vikas Polymer Land Pvt Ltd was transferred to Moonlite Technochem Pvt Ltd and now
Moonlite Technochem Pvt Ltd become the shareholder of the company Vikas Ecotech Ltd.

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Note No. 3 Reserves and surplus

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Profit and Loss Account
Opening Balance 2,00,70,172 –
Add: Profit for the year 25,53,42,219 3,78,58,361
Less: Transfer to General Reserve (1,78,73,954) (26,50,085)
Less: Dividend Proposed (1,27,11,984) (1,27,11,984)
Less: Dividend Distribution Tax (25,87,906) (24,26,119)

Closing Balance 24,22,38,547 2,00,70,172

Securities Premium Account

Opening Balance – 7,36,16,255
Add: Addition during the year
Less: Deletion during the year – 7,36,16,255

Closing Balance – –

Capital Reserve*
Opening Balance 9,65,934 9,65,934
Add: Addition during the year
Less: Deletion during the year

Closing Balance 9,65,934 9,65,934

General Reserve
Opening Balance 14,71,20,475 22,45,17,669
Add: Addition during the year 1,78,73,954 26,50,085
Less: Reversal of Fixed Assets Expired Useful Life – (11,19,729)
Less: Appropriation towards bonus shares – (7,89,27,550)

Closing Balance 16,49,94,429 14,71,20,475

Employee stock option reserve** 1,05,03,337 1,08,56,505

Less: Witten off/Transfer 1,05,03,337 (3,53,168)

Closing Balance – 1,05,03,337

Balance carried to balance sheet 40,81,98,910 17,86,59,918

*Kindly refer Note No. 47 of Note provide the details of the Capital Reserve
**Kindly refer Note No. 45 in respect of Employee Stock Option

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Note No. 4 Long-Term Borrowings

Amount in `

As at March 31, 2016 As at March 31, 2015

PARTICULARS Non-Current Current Total Non-Current Current Total

Maturities Maturities

Term Loan - From banks

HDFC Vehicle Loan – 45,066 45,066 45,066 2,54,144 2,99,210

(Agreement No. 24353585)
secured

HDFC- Vehicle Loan – – – 1,21,206 1,90,963 3,12,169

(Agreement No. 25941597)
secured

ICICI Bank- – – – 1,13,836 1,13,836

LADEL00026826516
secured

ICICI Loan No.- – 2,11,315 2,11,315 2,11,315 12,55,497 14,66,812

LADEEL00026874591
secured

ICICI Bank Loan No. 3,96,94,710 36,06,217 4,33,00,927 4,33,00,927 32,00,333 4,65,01,260
LADEL00002038205
secured (Loan Taken for
Business)

OBC TL- 11167015000461 47,92,386 50,40,000 98,32,386 78,41,132 61,42,461 1,39,83,593

secured (Term Loan – III)

OBC TL- 08767025001865 1,73,32,761 54,00,000 2,27,32,761 2,32,99,395 31,00,596 2,63,99,991

secured (Term Loan – IV)

OBC TL- 08767025002281 3,52,60,747 98,40,209 4,51,00,956 – – –

secured (Term Loan – V)

9,70,80,604 2,41,42,807 12,12,23,411 7,48,19,041 1,42,57,830 8,90,76,871

The Above Amount Includes

Secured Borrowings 9,70,80,604 2,41,42,807 12,12,23,411 7,48,19,041 1,42,57,830 8,90,76,871

Amount Disclosed Under (2,41,42,807) (2,41,42,807) (1,42,57,830) (1,42,57,830)

the Head “Other Current
Liabilities” (Note No. 9)

Net Amount 9,70,80,604 0 9,70,80,604 7,48,19,041 0 7,48,19,041

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HDFC - Vehicle Loan (Agreement No 24353585) was taken during 2013 year and carries interest @15.65% per annum. The Loan is
repayable in 36 installments of `22,837 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 25941597) was taken during 2013 year and carries interest @15.65% per annum. The Loan is
repayable in 36 installments of `17,941 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the
Company. The said loan is squared off during the financial year.

ICICI Loan No - LADEL00026826516 was taken during 2013 year and carries interest @10.74% per annum. The Loan is repayable in
36 installments of `10,086 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company. The
said loan is squared off during the financial year.

ICICI Loan No - LADEL00026874591 was taken during 2013 year and carries interest @9.09% per annum. The Loan is repayable in
36 installments of `1,11,450 each along with interest from the date of Loan. The loan is secured by hypothecation of car of the Company.

Term Loan-III (Oriental Bank of Commerce) Closing balance limits `98.32 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 GlobalOne Limited. The loan was sanctioned on reviewed on December 31, 2014 on the existing term and conditions. The Loan will
be repayable in Equal Installments of `5.12 lacs per month. The rate of interest shall be BR+ 2%+.5%. The Period of Maturity from the
Balance Sheet date is 17 months.

Term Loan-IV (Oriental Bank of Commerce) Closing balance limits `227.32 Lacs. The Term Loan is secured on the 1st exclusive charge
by way of hypothecation on plant & machinery financed by OBC. The loan was reviewed on December 31, 2014 on the existing term and
conditions. The Loan will be repayable in Equal Installments of `7.39 lacs per month. The rate of interest shall be BR+ 2%+.5%. The
Period of Maturity from the Balance Sheet date is 48 months.

Term Loan-V (Oriental Bank of Commerce) Closing balance limits `451.00 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 loan was granted on December 31, 2014
on the existing term and conditions. The Loan will be repayable in Equal Installments of `8.20 lacs per month. The rate of interest shall be
BR+ 2%+.5%. The Period of Maturity from the Balance Sheet date is 54 months.

ICICI Bank Loan No. LADEL00002038205: By virtue of acquisition of remaining share in sigma plastic industries, the Loan (Firm has
taken term loan from ICICI Bank of `500 Lacs repayable in 120 EMI of `717355 each on November 12, 2013, this is secured against
house

No.10, Road No.4 East Punjabi Bagh New Delhi, the property in the name of the directors of the Company) become the part of capital
structure of the Company and The Loan is in the process of transferring the name of the borrower from Sigma Plastic Industries to Vikas
Globalone Limited and has not been transferred in the name of Company as on Balance Sheet Date.

Note No. 5 Deferred Tax

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Deferred tax liability
Deferred tax liability depreciation – 68,562
Gross deferred tax liability – 68,562
Deferred tax Asset depreciation 17,14,757
Net deferred tax Assets 17,14,757 –

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Note No. 6 Other Long Term Liabilities

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Other Payables
Provision For Gratuity (Long Term Portion) 8,75,622 16,68,685
8,75,622 16,68,685
Total 8,75,622 16,68,685
Total 25,42,39,675 25,42,39,675

Note No. 7 Provisions

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Long-term Short-term Total Long-term Short-term Total
Provision for employee benefit
Provision for gratuity (Short Term) 16,182 16,182 36,058 36,058
16,182 16,182 36,058 36,058
Other provisions
Provision for proposed equity dividend 1,27,11,984 1,27,11,984 1,27,11,984 1,27,11,984
Provision for Dividend Tax on pro-
25,87,906 25,87,906 24,26,119 24,26,119
posed equity dividend
Current tax provision 13,24,36,448 13,24,36,448 2,16,50,610 2,16,50,610
14,77,36,338 1,52,99,890 3,67,88,713 3,67,88,713
Total 14,77,52,520 1,53,16,072 3,68,24,771 3,68,24,771

Note No. 8 Short Term Borrowings

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Loans Repayable on Demands - From Banks
Cash Credit Limit (Oriental Bank of Commerce) Secured 27,95,39,571 24,28,30,570
Cash Credit Limit (Bank of Baroda) Secured 23,72,76,415 10,07,79,262
PCFC/FCBRD Limit (Oriental Bank of Commerce) Secured 18,81,76,242 16,36,51,553
PCFC Limit (Bank of Baroda) Secured 10,97,28,142 7,97,23,911
81,47,20,370 58,69,85,296
The Above Amount Includes
Secured Borrowings 81,47,20,370 58,69,85,296
Total 81,47,20,370 58,69,85,296

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108 finanacial REports & statements

CASH CREDIT

Company is availing working capital limits under consortium of Oriental Bank of Commerce and Bank of Baroda with Oriental Bank of
commerce as lead banker in consortium and Bank of Baroda is member bank.

The Company is availing a cash credit (Hypo) limit of `4,440 Lacs which include PCFC Limit of `1,900 Lacs from Oriental Bank of
Commerce against Hypothecation of stock, receivable, advance to suppliers and other current assets on pari passu basis with Bank of
Baroda. No DP against stock and Book debts exceeding 180 days. Margin is 20% & The rate of interest is Bank Base Rate + 2% which
at present is 11.65% p.a. Further the Company is also availing LC (Import) DA/DP basis non Fund Based Limit of `2,220 Lacs (which
includes both side inter changeability LC to CC for `500 Lacs) procurement of Raw Material and spares. Cash Margin is 15% in the
shape of FDR. 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 `2,960 Lacs from Bank of Baroda with a sub limit of PC/PCFC/FBP/FBD of `1,100 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 on the Oriental Bank of Commerce. DP shall be permitted against receivable upto 180 days. Margin is 20% & Rate of interest is
BR + 2% which is present 11.65%. Further the Company is availing Non Fund Based LC (Import/Inland/DP/DA/BG), Buyers Credit of
`1,480 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 6 min, 15/1/2, 9/2 & 10 min Vill Ghevra, Near Mundka Railway Crossing, Delhi owned by
Ms. Seema Garg and Ms. Namita Garg.

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

3. Industrial property at Industrial Growth Centre, Phase 1, Dist. Samba, J & K owned by Vikas Globalone Limited.

4. Land & building situated at Industrial Growth Centre, Phase-1, Dist. Samba, J & K owned by Sigma Plastic Industries, which has
been merged with Vikas GlobalOne Ltd.

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

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

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

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

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

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

11. Mortgage of Agricultural land situated at village Sultanpur Dabas, New Delhi owned by Vikas GlobalOne Limited.

12. EM of industrial property at G-24-29 & G-30 RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar Rajasthan.

13. Negative lien on plot of 27,840.91 Sq. Mt. at Dahej-II, Industrial Estate, Dist. Bharuch Gujarat.

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 finanacial REports & statements 109

Properties at Sr. No. 4 & 5 are charged in account of Sigma Plastic Industries. Since this concern has been merged with the Vikas
Globalone Limited, the properties shall now be charged to the consortium.

Further limit is guaranteed by Personal guarantee of the following

1. Mr. Nand Kishore Garg

2. Mr. Vikas Garg

3. Mr. Vivek Garg

4. Ms. Seema Garg

5. Ms. Usha Garg

6. Ms. Namita Garg

Note No. 9 Trade Payables

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Sundry Creditors 44,89,41,279 31,43,71,473
Total 44,89,41,279 31,43,71,473

Note No. 10 Other Current Liabilities

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Current maturities of long-term debt (Note No. 4) 2,41,42,807 1,42,57,830
2,41,42,807 1,42,57,830
Others payables
Duties and Taxes 11,86,613 13,33,264
Advance received from customers 87,77,696 29,00,245
Expenses payable 40,87,771 44,75,396
Current Account with Bank* 6,47,74,225 –
Other current expenses and liabilities 21,78,780 19,62,532
8,10,05,085 1,06,71,437
Total 10,51,47,892 2,49,29,267

*Current Account with Bank is subject to reconciliation of cheques issued to suppliers.

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 Note No. 11 Fixed Assets Chart as at March 31, 2016

NOTE NO. 11 FIXED ASSETS

110
GROSS BLOCK DEPRECIATION NET BLOCK

Rate
Deletion

Addition
31, 2016
31, 2016
31, 2015

31, 2015
31, 2016
31, 2015

Deductions
for the year

As at March
As at March
As on March
As on March
As on March

As on March

PARTICULARS
Tangible

Vikas Ecotech Annual Report 2015-16

Assets
Lease hold As per 5,65,06,697 2,04,39,615 – 7,69,46,312 4,07,809 5,08,576 – 9,16,385 7,60,29,927 5,60,98,888.
Land useful
Life
– – –
– – –
Building 5.00% 44,50,484 – 13,85,889 30,64,595 8,28,261 1,19,402 1,89,621 7,58,042 23,06,553 36,22,223
(Office)
finanacial REports & statements

Building 5.00% 6,68,73,951 69,21,059 – 7,37,95,010 1,34,58,473 53,75,477 – 1,88,33,950 5,49,61,061 5,34,15,479
(Factory)
Plant & 13.91% 15,11,31,356 7,61,56,962 4,47,336 22,68,40,982 6,51,54,779 2,35,96,615 1,82,282 8,85,69,112 13,82,71,870 8,59,76,577
Machinery
Furniture & 18.10% 31,83,678 12,700 5,04,428 26,91,950 18,59,888 3,12,003 2,11,951 19,59,940 7,32,009 13,23,789
Fittings
Vehicles 25.89% 2,15,55,776 6,70,613 23,40,370 1,98,86,019 1,48,60,078 23,67,870 18,61,261 1,53,66,687 45,19,332 66,95,698
Office 13.91% 1,06,38,120 3,01,060 1,49,522 1,07,89,658 80,98,778 11,00,152 1,03,171 90,95,759 16,93,899 25,39,342
Equipments
Computers 40.00% 47,50,345 3,03,987 – 50,54,332 42,15,346 3,27,620 – 45,42,966 5,11,366 5,34,999
Total(A) 31,90,90,407 10,48,05,996 48,27,545 41,90,68,858 10,88,83,412 3,37,07,715 25,48,286 14,00,42,841 27,90,26,018 21,02,06,995
Intangible
Assets
Goodwill 29,21,464 – 29,21,464 – 29,21,464 – 29,21,464 – – –
Total (B) 29,21,464 – 29,21,464 – 29,21,464 – 29,21,464 – – –

Total (Current 32,20,11,871 10,48,05,996 77,49,009 41,90,68,858 11,18,04,876 3,37,07,715 54,69,750 14,00,42,841 27,90,26,018 21,02,06,995
Year)
As on March 28,21,84,387 3,98,44,984 17,500 32,20,11,871 7,06,03,779 4,00,97,994 11,36,354 10,95,65,419 21,02,06,995 21,15,80,609
31, 2015
 finanacial REports & statements 111

Note No. 12 Non-current Investments

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
LIC Group Insurance (Lower of cost and Market value) 3,86,179 3,55,046
Gross Investment 3,86,179 3,55,046
Net Investment 3,86,179 3,55,046

Note No. 13 Loans and Advances

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Long-term Short-term Long-term Short-term
Security Deposit
Unsecured and considered good 17,85,674 15,34,500 34,23,533 15,87,062
17,85,674 15,34,500 34,23,533 15,87,062
Other loans and advances (Unsecured &
Consider Good)
Advance to Suppliers * 8,74,45,530 10,22,68,866
Advance Against Capital Assets*** 72,49,720 -
Advance to Staff 6,16,750 9,43,210
Cenvat Credit Receivable 35,30,792 81,23,049
Tax deducted at source 4,58,505 29,99,504
MAT Credit - 1,50,80,382
Advance income tax paid 1,23,50,000 10,00,000
PLA Excise 7,13,693 15,63,213
Receivable Govt. Dept. 4,93,71,330 2,85,92,420
Margin Money with Suppliers 3,62,000 -
Interest Receivable 37,04,967 17,21,668
16,58,03,287 16,22,92,312
Total 17,85,674 16,73,37,787 34,23,533 16,38,79,374

*Advance to Suppliers includes `35,80,964 (Thirty Five Lacs Eighty Thousand Nine Hundred and Sixty Four only) to Moonlite
Technochem Private Limited in which Director of Vikas Globalone Limited is also a Director.

***Advance against Capital Assets includes `4,49,720 (Four Lacs Forty Nine Thousand Seven Hundred and Twenty only) to
M M Infosystems Private Limited in which Director of Vikas Globalone Limited is also a Director.

Balances with Related Parties

PARTICULARS As at March 31, 2016
Moonlite Technochem Pvt Ltd 35,80,964
M M Infosystems Pvt Ltd 4,49,720
Total 40,30,684

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112 finanacial REports & statements

Note No. 14 Other Non-current Assets

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Other Assets
Government Receivables – –
Total – –

Note No. 15 Inventories

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
(Valued at cost or NRV unless otherwise stated)
Finished Goods 2,53,65,043 3,17,47,267
Raw Material 28,01,95,935 17,64,47,009
Goods under Work in Progress – 3,86,093
Goods in Transit 1,29,82,576 3,79,84,458
Real Estate Inventory 2,66,16,539 2,66,16,539
Traded goods 3,02,95,454 57,79,275
Total 37,54,55,547 27,89,60,641

Note No. 16 Trade Receivables

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Exceeding six months
Unsecured, Considered Good 3,57,79,303 2,58,55,908
Less: Provision for Doubtful Debts – –
Sub Total 3,57,79,303 2,58,55,908
Less than six months
Unsecured, Considered Good 1,37,05,83,293 72,16,92,036
Less: Provision for Doubtful Debts - -
Sub Total 1,37,05,83,293 72,16,92,036
Total 1,40,63,62,596 74,75,47,944

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 finanacial REports & statements 113

Note No. 17 Cash & Cash Equivalent

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Balance with Banks
Bank Current Account 5,34,648 52,01,473
Unpaid Dividend Account* 11,33,708 9,41,924
FDR Margin Money with Bank 4,11,10,000 5,78,67,882
Total 4,27,78,356 6,40,11,279
Cash in hand
Cash in hand 12,09,411 18,25,914
Total 12,09,411 18,25,914
Total 4,39,87,768 6,58,37,193

*There is no Amount in unpaid Dividend Account which is transferable to Investor Protection Fund Account

Note No. 18 Other Current Assets

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Other Assets
Prepaid Expenses 9,00,546 23,55,962
Total 9,00,546 23,55,962

Note No. 19 Revenue from Operations

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Sale of products 3,23,45,49,618 2,19,12,38,924
Other Operative Income
Revenue franchise – 2,13,71,409
2,13,71,409
Other operating revenues
Miscellaneous other operating revenues – 32,498
32,498
Gross revenue from operations 3,23,45,49,618 2,21,26,42,831

Sales of Product includes following transactions with the related party:

PARTICULARS March 31, 2016 March 31, 2015

Moonlite Technochem Private Limited 8,13,57,063 2,10,38,632
Vikas Polymers (India) 21,37,325 57,65,681
Total 9,00,546 23,55,962

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114 finanacial REports & statements

Note No. 20 Other Income

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Interest Income and Commission 33,01,543 32,61,658
Job Work 33,500 10,38,713
Employee Stock Option reversal 1,05,03,337 –
Net gain on sale of long-term investments (Sale of Subsidiary) – 1,88,23,854
Other non-operating income
Profit on disposal of tangible fixed assets – 4,125
Foreign exchange difference income 58,06,318 74,66,966
Excise Refund 39,94,791 18,25,865
Rental income from property 12,00,000 4,66,634
Rebate and Discount 1,38,83,971 13,01,916
Export Incentive 95,70,029 1,95,003
Other receipts 15,642 26,85,572
3,44,70,751 1,39,46,080
Total 4,83,09,132 3,70,70,306

Note No. 21 Cost of Material Consumed

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Inventory at the beginning
Raw Material, WIP and Finished Goods 20,85,80,370 19,48,71,106
20,85,80,370 19,48,71,106
Add: Opening Stock of Sigma Plastic Industries (due to acquisition)
Raw Material, WIP and Finished Goods 933
933
Add:Purchase
Raw Material 1,82,63,72,222 1,25,87,82,675
1,82,63,72,222 1,25,87,82,675
Less: Inventory at the end
Raw Material, WIP and Finished Goods 30,55,60,978 20,85,80,369
30,55,60,978 20,85,80,369
Total 1,72,93,91,614 1,24,50,74,345

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 finanacial REports & statements 115

Details of inventory
Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Raw Material
Raw material, WIP & Finished Goods Inventory 30,55,60,978 20,85,80,370
30,55,60,978 20,85,80,370
Total 30,55,60,978 20,85,80,370

Details of Major material consumed

Amount in `
PARTICULARS Opening Stock Purchases Closing Stock Consumption
Raw Material
Tin Alloy/Inogts 3,81,70,600 36,34,62,465 5,69,45,315 34,46,87,750
2 Ethylhexyl Thiogycolate 61,07,550 4,24,72,677 1,37,08,927 3,48,71,300
Tinmate 0 5,96,70,951 8,95,500 5,87,75,451
Hydrogen Peroxide 16,11,469 1,03,77,399 38,18,522 81,70,346
RSO Refined Soyabean Oil 51,680 4,18,14,174 6,83,865 4,11,81,989
PVC Resin 60,44,200 31,74,28,504 5,58,89,664 26,75,83,040
Styrene Butadiene Copolymer 9,39,476 13,08,86,327 42,31,320 12,75,94,483
Styrene Butadiene Styrene 1,77,34,046 18,83,29,529 12,83,666 20,47,79,909
Methyl Chloride (Gas) 8,06,530 40,91,988 6,50,589 42,47,929
Others 13,71,14,819 66,78,38,208 16,74,53,610 63,74,99,417
Total 20,85,80,370 1,82,63,72,222 30,55,60,978 1,72,93,91,614

Note No. 22 Purchase of Stock-in-trade

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Purchase of Trading goods 66,74,28,985 49,42,21,506
Total 66,74,28,985 49,42,21,506

Purchase of Stock in Trade anad Raw Material includes following transactions with the related party:

PARTICULARS March 31, 2016 March 31, 2015

Moonlite Technochem Private Limited 11,29,03,456 12,04,18,383.75
Vikas Polymers (India) 7,40,09,328 2,73,37,248

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116 finanacial REports & statements

Note No. 23 Changes in Inventories

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Inventory at the end of the year
Traded Goods & Real Estate Inventory 5,69,11,993 3,23,95,814
5,69,11,993 3,23,95,814
Inventory at the beginning of the year
Traded Goods & Real Estate Inventory 3,23,95,814 4,36,14,502
Add: Opening stock of sigma plastic industry (Earlier Associate 96,90,750
Concern now 100% Owned)
3,23,95,814 5,33,05,252
(Increase)/decrease in inventories
Traded Goods & Real Estate Inventory (2,45,16,179) 2,09,09,438
(2,45,16,179) 2,09,09,438

Amount in `
PARTICULARS Opening Stock Closing Stock Change in Inventory
Pet Resin 57,79,275 0 57,79,275
Plastic Granuals
PVC Resin 0 1,90,70,716 (1,90,70,716)
TIN Ingots 1,12,24,738 (1,12,24,738)
Land 2,66,16,539 2,66,16,539 0
Grand Total 3,23,95,814 5,69,11,993 (2,45,16,179)

Note No. 24 Employee Benefit Expenses

Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Salaries and Wages
Salary including Employee Benefits 2,56,49,300 2,81,76,023
Wages including Employee Benefits 34,80,934 43,88,472
Contribution of Employer on Provident and Other Fund 7,59,666 3,70,938
Expenses on ESOP – 18,55,716
Director Remuneration 22,80,000 15,18,000
3,21,69,900 3,63,09,149
Staff welfare Expenses
Staff Welfare Expenses 6,09,436 8,62,936
6,09,436 8,62,936
Total 3,27,79,336 3,71,72,085

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 finanacial REports & statements 117

Note No. 25 Finance Costs

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Interest
Interest on long-term loans from banks 82,29,085 99,07,529
Interest on other borrowings 7,51,65,542 8,04,42,308
Other Financing Charges 2,99,58,915 1,67,63,131
11,33,53,541 10,71,12,968
Total 11,33,53,541 10,71,12,968

Note No. 26 Depreciation and Amortization Expenses

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Depreciation on tangible assets 3,37,07,715 3,35,95,821
Amortisation of intangible assets 0 5,84,292
Total 3,37,07,715 3,41,80,113

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118 finanacial REports & statements

Note No. 27 Other Expenses

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
A) Manufacturing & Other Direct Expenses
Custom duty 1,79,90,356 2,06,75,258
Freight 3,83,92,427 3,50,18,075
Loading and unloading expenses 29,14,419 15,51,392
Power and fuel 2,23,99,714 2,17,97,288
Demurrage and Inland haulage charges 3,44,61,471 1,94,79,955
Consumption of stores and spare parts 43,88,819 17,60,178
Other expenditure 1,06,04,798 4,19,414
Total Manufacturing & Other Direct Expenses 13,11,52,004 10,07,01,560
B) Other Administrative & Selling Expenses
Legal and Professional Chrages 44,22,701 38,28,680
Expenses on Corporate Social Responsibility 15,00,000 12,00,000
Conveyance Expenses 6,90,964 10,19,630
Advertisement and Business Promotion 18,21,507 24,53,858
Rent 11,68,647 8,20,647
Electricity Expenses 9,84,572 11,54,261
Communication Connectivity expenses 13,17,955 14,41,081
Travelling Expenses 40,42,731 35,89,710
Vehicle Running Expense 3,67,302 7,66,074
Donation 16,71,800 4,20,500
Repair and Maintenance - Plant and Machinery 5,11,925 21,29,810
Repair and Maintenance Expenses - Others 24,20,769 4,41,430
Repair and Maintenance - Building 79,812 3,33,770
Freight 41,75,450 21,21,225
Security Charges 20,44,765 17,11,915
Rates and Taxes 36,22,621 12,07,005
Insurance Expenses 38,92,723 21,82,412
Printing and Stationery 7,32,100 5,96,182
Director Sitting Fees 2,23,000 1,40,000
Auditors Remuneration 6,29,750 5,50,000
Rebate and Discount 99,120 10,91,275
ROC Fee 1,700 9,04,500
Commission paid 961,360 15,94,109
Miscellaneous Expenses 1,29,597 2,38,518
Other Interests 2,74,310 7,69,387
Other Expenditure 77,89,801 1,07,36,249
Total Administrative & Other Selling Expenses 4,55,76,981 4,34,42,228
Total Other Expenses ( A+B) 17,67,28,985 14,41,43,788

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 finanacial REports & statements 119

Note No. 27(a) Other Expenses

Current tax
Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Current tax pertaining to current year 13,51,61,305 2,16,50,610
Total 13,51,61,305 2,16,50,610

Deferred tax
Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Deferred Tax (17,83,319) (36,43,842)
Total (17,83,319) (36,43,842)

Excess/short provision relating earlier year tax

Amount in `
PARTICULARS March 31, 2016 March 31, 2015
Short Provision of tax pertaining to previous years 38,46,649 63,63,547
Total 38,46,649 63,63,547

Auditor’s Remuneration
Amount in `
PARTICULARS March 31, 2016
Auditor’s Remuneration 5,50,000
Service Tax 79,750
Total 6,29,750

Note No. 28
The board of directors, subject to approval of the members has recommended a dividend of 5% of face value per Equity Share.

Note No. 29
Commitments
Capital Commitment: There are no any other contracts remaining to be executed on capital account and not provided for as at March
31, 2016 except the Company has purchased two Land & Building for through auction on March 19, 2016 for `3,23,50,000
(2,51,00,000.00 + 72,50,000.00), at Village Rohad Bahadurgad admeasuring measuring 4840 sq mtrs and 1512.50 sq mts.
Company has made the payment of `68,00,000 for the same upto March 31, 2016, remaining payment and the registration will be
done during the next financial year and the same will be registered in the name of the Company after completing all the formalities for
taking over the units.

Lease Commitment: The Company has taken various premises on operating leases. The lease rental of `3,55,241 (Previous year
`6,12,515) has been charged to Profit and Loss Account for the year ended March 31, 2016. The underlying agreements are executed
for a period generally ranging from one year to three years, renewable at the option of the Company and the lessor. There are no
restrictions imposed by such leases and there are no sub leases.

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120 finanacial REports & statements

The minimum rental payments to be made in future in respect of these operating leases are as under:
Amount in `
Minimum Lease Rentals As at March 31, 2016 As at March 31, 2015
Within one year 3,80,441 10,25,400
Later than one year, not later than Three years 7,60,882 6,51,310
Total 11,41,323 16,76,710

Note No 30.
There is no significant event that has been taken place after the date of Balance Sheet.

Note No 31.
There is a Contingent Liability of `398.97 Lacs in the form of Bank Guarantee and `2,375 Lacs in respect of LC and duty saved
against advance license is `117.17 Lacs. LC Limit was utilized against the Trade Payable outstanding in Note No. 9.

Note No 32.
Details of pending Litigations are given below: -
Amount in `
Nature of Statute Nature of Dues Amount Forum where dispute is pending
Income Tax Act Income Tax Demand 31,44,000 ITAT, Delhi
Custom Act Custom Duty Demand 5,33,266 Custom Authorities, Rajasthan
VAT Vat Demand 88,000 VAT Authorities, Jammu
VAT Vat Demand 90,67,107 Special Commissioner Deptt. Of
Trade & Taxes, Rajasthan,
Income Tax Act Income Tax Demand (A.Y. 2012-13) 27,64,140 Commissioner of Income Tax (A) IX,
Delhi
Income Tax Act Income Tax Demand (A.Y. 2013-14) 4,02,480 Commissioner of Income Tax (A) IX,
Delhi
Income Tax Act* Income Tax Demand (A.Y. 2012-13) 38,53,030 Commissioner of Income Tax (A)
(in the name of Sigma Plastic Industry) XIV, Delhi
Income Tax Act* Income Tax Demand (A.Y. 2013-14) 7,08,640 Commissioner of Income Tax (A)
(in the name of Sigma Plastic Industry) XIV, Delhi
Excise* Excise Duty Refund (in the name of 31,24,983 CESTET (Delhi)
Sigma Plastic Limited)
Excise Excise Duty Refund 4,09,226 CESTET (Delhi)

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

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

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Note No 33.
Inventory as stated in note no 15 includes real estate inventory of `266.17 Lacs.

Note No 34.
Segment Reporting
The segment reporting of the Company has been prepared in accordance with Accounting Standard (AS-17) Accounting for Segment
Reporting issued by The Institute of Chartered Accountant of India.

The Company has determined the following business segments as the primary segments for disclosure:
 Chemical Division
 Real Estate Division
 Agro Division
 Service Division

The geographical Segment consists of:

 Domestic (Sales to customers located in India)
 International (Sales to customers located outside India)

The above business segments have been identified and reported considering:
 The nature of the services
 The related risk and returns
 The internal financial reporting systems

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

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Amount in `
PARTICULARS As at March 31, 2016 As at March 31, 2015
Segment Revenue
Chemical Division 30,715.20 19,312.47
- Manufacturing 23,912.92 15,588.12
- Trading 6,802.28 3,724.35
Service Division 214.04
Agro Division 1,449.04
Real Estate Division 126.00
Total 30,715.20 21,101.55
Segment Expenditure
Chemical Division 26,139.08 18,040.84
Service Division 96.14
Agro Division 1,332.01
Real Estate Division 121.56
Total 26,139.08 19,590.59
Segment Results
Chemical Division 5,043.10 1,454.05
Service Division 117.90
Agro Division 117.03
Real Estate Division 4.44
Total 5,043.10 1,693.42
Less : Interest 1,133.54 1,071.13
Profit before Tax 3,925.67 622.29
Capital Employed
Chemical Division 6,358.23 4,062.83
Real Estate Division 266.16 266.16
Total 6,624.39 4,328.99
Geographical Revenue
Domestic Revenue 15,818.14 13,481.31
Export Revenue 14,897.06 7,620.24
Total Revenue 30,715.20 21,101.55

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 No 35.
The Company had not received information from suppliers regarding their status under the “Micro, Small and Medium Enterprises
Development Act 2006” and accordingly no disclosure regarding overdue outstanding of principal amount and interest thereon has
been given.

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Note No 36.
The Company has purchased Leasehold Land for sum of `3,02,57,276, at D-2/CH/401-402, Dahej – II, Industrial Estate, District
Bharuch, Gujarat. The Company has made the payment of the same, and the registration of lease deed is registered in the name of the
Company as on January 7, 2016. A leasehold rights- leasehold land is amortized over the remaining useful life.
The Company has also purchased Leasehold Land for sum of `1,56,91,100, at F 7 & 8 RIICO Industrial Area, Vigyan Nagar,
Shahjahanpur Dist. Alwar, Rajasthan. The Company has made the payment of the same, and the registration of lease deed is registered
in the name of the Company as on February 6, 2016. A leasehold rights- leasehold land is amortized over the remaining useful life.

Note No 37.
In the opinion of the Management of the Company, all Current Assets, Loans and Advances appearing in the balance sheet as at March
31, 2016 have a value on realization in the ordinary course of the Company’s business at least equal to the amount at which they
are stated in the balance sheet. Certain balances shown under current assets, current liability, loans and advances and balances with
banks, are subject to confirmation / reconciliation.

Note No 38.
In the opinion of the Management, no provision is required to be made against the recoverability of these balances except provided.

Note No 39.
Employees Benefit Obligation

I. Defined Contribution Plan

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

PARTICULARS Year Ended March 31, 2016 Year Ended March 31, 2015
Employer’s contribution to Provident Fund 5,92,175 3,70,938

II. Defined Benefit Plan

Principal actuarial assumptions at the balance sheet date

PARTICULARS Year Ended March 31, 2016 Year Ended March 31, 2015
Retirement Age 60 60
Withdrawal Rates
Upto 30 Years 3% 3%
31-44 Years 2% 2%
Above 44 Years 1% 1%
Discounting Rate 7.80% 7.80%
Expected rate of increase in salary 6% 6%
Mortality Table
Indian Assured Live Maturity –
2006-08

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(A) Changes in the Present Value of Obligation

Amount in `
PARTICULARS Gratuity Gratuity
Year Ended March 31, 2016 Year Ended March 31, 2015
Present Value of obligation as at the beginning of the Period 17,04,743 13,76,240
Interest Cost 1,33,253 1,07,347
Current Service Cost 2,81,922 4,09,394
Benefits Paid/accrued
Actuarial (gain)/loss on obligations (12,28,114) (1,88,238)
LC Premium 16,258
Present value of obligation as at the End of the Period 8,91,804 17,04,743

(B) Changes in the fair Value of Plan Assets

Nil

(C) Reconciliation of Present value of Defined Benefit Obligation and the Fair value of Assets
Amount in `
PARTICULARS Gratuity Gratuity
Year Ended March 31, 2016 Year Ended March 31, 2015
Present Value of obligation as at the End of the period 8,91,804 17,04,743
Fair Value of Plan assets as at end of the Period 3,86,179 3,55,046
Un Funded Status
Unrecognized Actuarial (gains)/losses
Unfunded Net Assets/(liability) Recognize in Balance sheet 5,05,625 13,49,697

(D) Expense recognized in the Statement of Profit and Loss

Amount in `
PARTICULARS Gratuity Gratuity
Year Ended March 31, 2016 Year Ended March 31, 2015
Current Service Cost 2,81,922 4,09,394
Past Service Cost
Interest Cost 1,33,253 1,07,347
Curtailment Cost (31,133) (10,986)
Actuarial (gain)/Loss on obligations (12,28,114) (1,88,238)
Total Expenses recognized in the Statement of Profit & Loss (8,44,072) 3,17,517

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(E) Constitution of Plan Assets

Movement in the liability recognized in the Balance sheet

PARTICULARS For the period Ending

March 31, 2016 March 31, 2015
Present Value of obligation as at the beginning 17,04,743 13,76,240
Expenses Recognized in statement of Profit and Loss (8,44,072) 3,17,517
Benefits Paid - -
Actual Return on Plan Assets 31,133 10,986
Acquisition Adjustments - -
Present Value of Obligation as at the end 8,91,804 17,04,743

During the year ended March 31, 2016, the Company has made a provision of `8,91,804 in respect of provision for gratuity and
defined benefits as per actuarial valuation made as per AS-15. The balance has been reversed & credited to the Profit and Loss A/c.

The Company has taken Group Gratuity Scheme for the employees from the LIC of India. Total Fund Value of the same is `3,86,179.

Note No 40.

As per the best estimate of the management, no provision is required to be made as per Accounting Standard 29 (AS 29) Provisions,
Contingent Liabilities and Contingent Assets as notified under the Companies (Accounting Standards) Rules, 2006, as amended, in
respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required
to settle the obligation.

Note No 41.
Prior Period Items
Amount in ` Lacs
PATICULARS As at March 31, 2016 As at March 31, 2015
Expenses:-
Legal & Professional charges 31,390 1,14,106
Provident Fund/ESIC 81,069 39,609
Rent 0 63,000
Freight charges 1,500 15,05,228
Custom Duty Expenses 15,85,313 -
General Exp 53,004 1,02,829
Loading Unloading Charges 78,762 53,490
Salary/Personal 2,69,616 76,690
Export Charges 13,203 2,27,077
Processing Fee 1,03,050 0
Insurance 2,03,030 0
Mess Expenses 21,601 0
Total 24,41,538 21,82,029
LME and Foreign Exchange Difference 18,53,062 0
Expert Incentive 19,84,449 0
VAT Refund 2,15,606 0
Total 40,53,117 0
Prior Period (Income)/Expenses (16,11,579) 21,82,029

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Note No 42.
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:

Nature of Relationship Name of Party

Company with Common Director MM InfoSystems Private limited

Moonlite Technochem Private Limited

Key Management Personnel Mr. Vikas Garg (Managing Director)

Mr. Vivek Garg (Whole Time Director)
Mr. Ashutosh Kumar Verma (CEO & Whole Time Director)
Mr. Pankaj Kumar Gupta (C.F.O)
Ms. Gayatri Chawla (C.S.)

Relative of Key Management Personnel Mr. Nand Kishore Garg, Mrs. Seema Garg, Mrs. Shashi Prabha Verma

Other Related Parties Vikas Polymer (India)

The following transactions were carried out during the year with related parties in the ordinary course of business:

Amount in ` Lacs
Nature of Transaction Company with common Director Kmp & Relative Other Relates Parties Total
Sales 813.57 - 21.37 834.94
Purchase 1,129.03 - 740.09 1,869.12
Advance against Capital Goods 2.20 - 2.20
Rent Paid - 3.44 - 3.44
Director Remuneration - 22.80 - 22.80
Salary to KMP - 13.01 - 13.01
Salary - 6 - 6
Reimbursement - - - -
Total 1,944.80 45.25 761.46 2,751.51

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PARTICULARS Amounts (in ` )

A. FIXED ASSETS
Assets Purchased during the year
Related party (in form of Takeover of Sigma Plastic Industries) –
Assets Sold during the year
Related party –
B. NON CURRENT INVESTMENT
Subsidiaries
Opening Balance –
Disposed off during the year –
Closing Balance –
Associates
Opening Balance –
Purchased/Subscribed during the year –
Withdraw/Merged During the year –
Closing Balance –
C. TRADE RECEIVABLES AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party –
D. ADVANCES TO SUPPLIERS GIVEN AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party 40,30,684
E. ADVANCES RECEIVED FROM CUSTOMER AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party –
F. TRADE PAYABLE AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party 58,16,291
G. REVENUE FROM OPERATION AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party 8,34,94,388
H. CORPORATE GURANTEES GIVEN AS ON MARCH 31
Subsidiaries –
Associates –
Other Related Party –

In accordance with AS 18, disclosures in respect of transactions with identified related parties are given only for such period during
which the relationship existed.

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Note No 43.
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.

Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
Net Profit/(Loss) After Tax as per Profit & Loss Account (in `)* 25,53,42,219 3,78,58,361
Weighted average no of shares outstanding during the year 25,42,39,675 25,42,39,675
Basic and diluted Earnings Per Share (in `)** 1.00 0.15
Nominal value per Equity Share (in `) 1 1

Note No 44.
Deferred Tax:-
In compliance with Accounting Standard 22 (AS 22) - Accounting for Taxes on Income, as notified under the Companies (Accounting
Standards) Rules, 2006, as amended, the Company has recognized deferred tax Asset (net) in the Profit and Loss Account of
`17,83,319 (Previous year `36,43,842) during the year ended March 31, 2016.

The breakup of Deferred Tax Assets into major components as at March 31, 2016 is as under:

Paticulars As at March 31, 2016 As at March 31, 2015

Deferred Tax Liabilities
Arising on account of temporary differences due to:
Excess of Book WDV of Fixed Assets over Tax WDV of Fixed Assets 17,14,575 (68,562)
Total 17,14,575 (68,562)

Note No 45.
In the AGM of the Company held on September 28, 2011, the members of the Company passed a resolution for introducing a Stock
Compensation Plan called the Employees Stock Option Scheme, 2011 (ESOS 2011), for the benefit of employees of the Company. The
resolution also accorded approval for the Board of Directors, to formulate the Scheme as per broad parameters outlined in the resolution,
either directly or through a committee. Accordingly, a committee of directors called Compensation Committee was constituted.The
Committee, after due deliberations and after studying the provisions of SEBI employee Stock option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999 as amended from time to time, has formulated the Employees Stock Option Scheme, 2011 (ESOS
2011). The Scheme has been approved by the Stock Exchange on May 7, 2012 (NSE) and May 2, 2012 (BSE). The Compensation
Committee at its meeting held on June 2, 2012 has granted Stock Option to the eligible employees and accordingly the options granted
shall vest over a period of 3 years, or as may be decided by the CC, as per schedule as under.

Year from the date of Grant Vesting of Options Granted

End of first Year 30 % of the Grant
End of Second Year 30 % of the Grant
End of third year 40 % of the Grant

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There shall be a minimum period of one year between grant date and the vesting period for the first lot of vesting of granted options.
The interval between the subsequent lots shall be one year.

The Employee Stock Options granted by the Company pursuant to its ESOP Scheme, 2011, lapsed on December 1, 2015. No
employee opted for ESOP during the year under consideration. consequent to effect of lapse of options, the balance of `1,05,03,337
appearing in Employee Stock Option Reversal account has been reversed and shown as under the head, Employee Stock Option
Compensation account under “Other Income”, Consequent to the same, Other income has been increased and corresponding increase
in profit for the year by `1,05,03,337.

Note No 46.
The company does not see any material foreseeable losses on any long term contracts entered by the company, therefore no provision
is required in this respect. Further the Company has not entered into any foreign exchange derivative instruments during the year
under consideration.

Note No 47.
The unit at Bawana (Delhi) and unit at Sitarganj (Uttrakhand) have been shifted in the manufacturing unit at Shajahanpur, (Rajasthan).
1. In the unit at Bawana (Delhi) wherein two products namely PVC Compounds and V-blend (SOE Compound) are being manufactured
(Shifted to Rajasthan Unit 1 w.e.f. February 1, 2016).
2. In the unit at Sitarganj (Uttrakhand) wherein products like V-PET-C (PET-Compound) is being manufactured (Shifted to Rajasthan
Unit 1 w.e.f. February 1, 2016).

Note No 48.
Corporate Social Responsibility
The Company is covered u/s 135 of Companies Act 2013, the details of the expenditure on corporate social responsibility activity is
as under:
a. Gross amount required to be spent by the Company during the year: `7,02,214
b. Amount spent during the year: `15,00,000

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Note No 49.
Additional information to the extent applicable are as follows:-

A. Managerial remuneration
Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
Salaries 22,80,000 15,18,000
Employer’s Contribution to Provident Fund - -
Total 22,80,,000 15,18,0000

B. Auditors remuneration
Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
Audit Fees & Tax Audit 5,50,000 5,50,000
Service Tax 79,750 0

C. Expenses incurred in foreign currency during the year ended March 31, 2016 aggregates to
Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
Expenditures:-
Purchase 31,13,22,520 51,55,06,231
Foreign Travelling 13,86,738 16,11,335
Interest Expenses 3,49,325 1,19,365
Total 31,30,58,223 51,72,36,931

D. CIF value of imports

Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
Raw Material Purchased 28,74,55,575 51,53,64,428
Capital Goods (Including Spares) 2,38,66,945 1,41,803
Total 31,13,22,520 51,55,06,231

E. CIF value of export (in foreign currency) made during the year included in the sales amounting `131,41,36,473
(Previous Year: `76,20,23,719)

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F. Activity in foreign currency during the year ended March 31, 2016 aggregates to
Amount in `

PATICULARS As at March 31, 2016 As at March 31, 2015

Expenditures:
Purchase 31,13,22,520 51,55,06,231
Foreign Travelling 13,86,738 16,11,335
Interest Expenses 3,49,325 1,19,365
Total 31,30,58,223 51,72,36,931
Earnings:
Sale of Goods 1,31,41,36,473 76,20,23,719
Total 1,31,41,36,473 76,20,23,719

G. Details of foreign currency fluctuation gain for the year ended March 31, 2016 aggregates to
Amount in `
PATICULARS As at March 31, 2016
Purchase 15,12,744
Sales 2,45,90,916
Bank Balance -2,02,97,342
Total 58,06,318

Note No 50.
Disclosures as required by Clause 32 of the Listing Agreement
Amount in `
PATICULARS As at March 31, 2016 As at March 31, 2015
A. LOANS AND ADVANCES
– – –
B. CONSUMPTION OF RAW MATERIAL
Raw Material Consumed 1,72,93,91,614 1,24,50,73,411
C. DETAILS OF CONSUMTION OF IMPORTED AND INDIGENOUS STOCK
Imported 58,62,32,416 46,60,22,631
Indigenous 1,14,31,59,198 77,90,50,780
D. EARNING IN FOREIGN EXCHANGE
Sale of Goods 1,31,41,36,473 76,20,23,719

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Note No 51.
Quantitative Details of Major material consumed in Manufacturing
(In Kgs)
PARTICULARS Opening Stock Purchases Closing Stock Consumption
Raw Material
Tin Alloy/Inogts 30,731 3,44,210 51,879 3,23,061
2 Ethyl hexyl Thiogycolate 34,526 2,40,652 81,145 1,94,034
Tin mate - 1,24,471 1,680 1,22,791
Hydrogen Peroxide 37,616 2,87,800 1,03,203 2,22,213
RSO (Refined Soyabean Oil) 760 6,65,175 10,521 6,55,414
PVC Resin 85,000 50,22,975 9,66,006 41,41,969
Styrene Butadiene Copolymer 7,040 10,41,790 48,261 10,00,569
Styrene Butadiene Styrene 1,32,176 16,71,031 11,726 17,91,481
Methyl Chloride (Gas) 10,910 63,580 15,476 59,014
Others 16,01,701 2,01,13,554 25,24,538 1,91,90,717
Total 19,40,459 2,95,75,239 38,14,436 2,77,01,262

Quantitative Details of Traded Goods

Stock Transfer /
PARTICULARS Opening Stock Inwards Outwards Closing Stock
Shortage
Industrial Chemicals- 2EHTG 0 32000 kgs 32000 kgs 32000 kgs
Pet Resin 88000 kgs 516000 kgs 604000 kgs 0 145000 kgs
Plastic Granuals – 2883800 kgs 2883800 kgs 0 0
PVC Resin – 3838975 kgs 3498975 kgs 340000 kgs 312000 kgs
Tin Ingots – 250840 kgs 240820 kgs 10020 kgs 240820 kgs
Other – 1141795 kgs 1141795 kgs 445795 kgs
Grand Total 88000 kgs 8663410 kgs 8401390 kgs 350020 kgs 1175615 kgs

Note No 52.
Borrowing Cost:
There is no borrowing cost that is attributable to acquisition or development of qualifying tangible/intangible assets, which is to be
capitalized till the date they are put to use.

For R S P H AND ASSOCIATES For and on behalf of the Board of Directors

Chartered Accountants VIKAS GARG SUMER CHAND TAYAL
(FRN: 003013N) (MANAGING DIRECTOR) (DIRECTOR)
00255413 00255661
TARUN KUMAR BATRA
Partner
Membership No.: 094318

Place: NEW DELHI SIDDHARTH AGRAWAL ASHUTOSH KUMAR VERMA PANKAJ KUMAR GUPTA
Date: May 23, 2016 (COMPANY SECRETARY) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

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Notes

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Notes

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Vikas Ecotech Annual Report 2015-16

136 finanacial REports & statements

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34/1, Vikas House, East Punjabi Bagh,

New Delhi-110026, India
Tel: +91-11-4314 4444
Fax: +91-11-4314 4488
Email: [email protected]
Web: www.vikasecotech.com

Vikas Ecotech Annual Report 2015-16