1. Summary Information

 

 

Country

India

Company Name

VIKAS GLOBALONE LIMITED

Principal Name 1

Mr. Nand Kishore Garg

Status

Satisfactory

Principal Name 2

Mr. Brij Behari Tandon

 

 

Registration #

55-019465

Street Address

34/1 Vikas Apartments East Punjabi Bagh, Delhi – 110026, India

Established Date

30.11.1984

SIC Code

--

Telephone#

91-11-43144444

Business Style 1

Manufacturer

Fax #

91-11-43144488

Business Style 2

Trader

Homepage

www.vikasglobal.in

Product Name 1

Tin PVC Heat Stabilizer

# of employees

105 (Approximately)

Product Name 2

TPR

Paid up capital

Rs. 101,039,000/-

Product Name 3

Calcium Carbonate.

Shareholders

Promoter and Promoter Group -42.86%, Public Shareholding-57.14%

Banking

Oriental Bank Of Commerce

Public Limited Corp.

Yes

Business Period

28 Years

IPO

Yes

International Ins.

-

Public Enterprise

Yes

Rating

Ba (43)

Related Company

Relation

Country

Company Name

CEO

Subsidiary

India

Moonlite Technochem Private Limited

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2011

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

365,205,000

Current Liabilities

128,382,000

Inventories

90,768,000

Long-term Liabilities

243,385,000

Fixed Assets

121,440,000

Other Liabilities

19,532,000

Deferred Assets

0

Total Liabilities

391,299,000

Invest& other Assets

72,916,000

Retained Earnings

157,991,000

 

 

Net Worth

259,030,000

Total Assets

650,329,000

Total Liab. & Equity

650,329,000

 Total Assets

(Previous Year)

385,828,000

 

 

P/L Statement as of

31.03.2011

(Unit: Indian Rs.)

Sales

982,998,000

Net Profit

60,761,000

Sales(Previous yr)

615,760,000

Net Profit(Prev.yr)

30,284,000

 

 

 

 

MIRA INFORM REPORT

 

 

Report Date :

18.05.2012

 

IDENTIFICATION DETAILS

 

Name :

VIKAS GLOBALONE LIMITED

 

 

Registered Office :

34/1 Vikas Apartments East Punjabi Bagh, Delhi – 110026

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

30.11.1984

 

 

Com. Reg. No.:

55-019465

 

 

Capital Investment / Paid-up Capital :

Rs. 101.039 Millions

 

 

CIN No.:

[Company Identification No.]

L65999DL1984PLC019465

 

 

IEC No.:

0508051746

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELVO4673E

 

 

PAN No.:

[Permanent Account No.]

AAACV0608G

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares Are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Trader of Methyl Based Tin PVC Heat Stabilizer, TPR and Calcium Carbonate.

 

 

No. of Employees :

105 (40 – In Office + 50 – In Factory + 15 – In Branch)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (43)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

34/1 Vikas Apartments East Punjabi Bagh, Delhi – 110026, India

Tel. No.:

91-11-43144444

Mobile No.:

91-9711179718 (Mr. Rajendra Agarwal)

91-9711179716 (Mr. Ashwani Soni)

91-9811703783 (Mr. Ashwani Sikka)

Fax No.:

91-11-43144488

E-Mail :

catarunbatra@gmail.com

Website :

www.vikasglobal.in

 

 

Corporate Office :

234, DDA Office Cmpx, Jhandewalan Extn, New Delhi-110055

 

 

Factory 1 :

Industrial Growth Centre, Phase-1, SIDCO Complex, District Samba – 184121, Jammu and Kashmir, India

Tel. No.:

91-1923-241069

Area :

18000 sq.ft

Location :

Owned

 

 

Factory 2 :

G-24-30, Vigyan Nagar, RIICO Industrial Area, Shahjahanpur, District Alwar – 301706, Rajasthan,  India

Tel. No.:

91-1494-235940

Area :

13200 sq.ft

Location :

owned

 

 

Warehouse 1 :

100/14, Prakash Industrial Area, Sahibabad, Ghaziabad – 201001, Uttar Pradesh, India

Area :

360 sq.ft

Location :

Rented

 

 

Warehouse 2 :

GL – 35, Ganpathi Dham Industrial Area, Bahdurgarh, Jhajjar – 124104, Haryana, India

Area :

1080 sq.ft

Location :

Owned

 

 

Warehouse 3 :

A-28, Amanpuri, Adhayapak Nagar, Nagloi, New Delhi – 110041, Delhi, India

Fax No.:

91-11-25943865

Area :

10000 sq.ft

Location :

Owned

 

 

DIRECTORS

 

AS ON 31.03.2011

 

Name :

Mr. Nand Kishore Garg

Designation :

Chairman and Managing Director

Address :

10/4 East Punjabi Bagh, New Delhi – 26, Delhi, India

Date of Birth/Age :

14.04.1948

Qualification :

Master of Science, Bachelor of Law, Doctorate in Literature

Date of Appointment :

30.06.2009

 

 

Name :

Mr. Brij Behari Tandon

Designation :

Independent – Non Executive Director

Address :

J- 238, First Floor, Saket , New Delhi – 110017, Delhi, India

Date of Birth/Age :

30.06.1941

Qualification :

Master of Arts – Economics , Bachelor of Law – University of Delhi

 

 

Name :

Mr. Pradip Kumar Banerji

Designation :

Independent – Non Executive Director

Address :

D-42, DGS Apartment, Plot No.6, Sector-22, Dwarka, New Delhi-75, Delhi, India

Date of Birth/Age :

04.07.1942

Qualification :

Master of Economics

 

 

Name :

Mr. Purshottam Das Bhoot

Designation :

Independent – Non Executive Director

Address :

Sudama sadan, 26, P.K. tagore Streer, Kolkata-700006 West Bengal, India

Date of Birth/Age :

01.03.1929

Qualification :

Bachelor of Law, Associate Member of the Institute of Company Secretaries of India

 

 

Name :

Mr. Sumer Chand Tayal

Designation :

Independent – Non Executive Director

Address :

BQ-5, Shalimar Bagh , New Delhi – 110052, Delhi, India

Qualification :

Bachelor of Engineering - Civil

 

 

Name :

Mr. Mukesh Aggarwal

Designation :

Independent – Non Executive Director

Address :

C-15, Bhagwan Dass Nagar, New Delhi-26, Delhi, India

Qualification :

Bachelor of Commerce, Chartered Accountant

 

 

Name :

Mr. Vikas Garg

Designation :

Executive Director

Address :

10/4 East Punjabi Bagh, New Delhi –26, Delhi, India

Date of Birth/Age :

15.06.1973

Qualification :

Bachelor of Commerce

 

 

Name :

Mr. Vivek Garg

Designation :

Executive Director

Address :

10/4 East Punjabi Bagh, New Delhi – 26, Delhi, India

Date of Birth/Age :

25.11.1974

Qualification :

Bachelor of Commerce

 

 

KEY EXECUTIVES

 

Name :

Mr. Aditya Narayan Singh

Designation :

Company Secretary

 

 

 

Audit Committee

Name :

Mr. Mukesh Aggarwal

Designation :

Chairman

 

 

Name :

Mr. Sumer Chand Tayal

Designation :

Member

 

 

Name :

Mr. Purushottam Dass Bhoot

Designation :

Member

 

 

 

Shareholder Grievance Committee

Name :

Mr. Sumer Chand Tayal

Designation :

Chairman

 

 

Name :

Mr. Vivek Garg

Designation :

Member

 

 

Name :

Mr. Mukesh Aggarwal

Designation :

Member

 

 

 

Risk Management Committee

Name :

Mr. Pradip Kumar Banerji

Designation :

Chairman

 

 

Name :

Mr. Mukesh Aggarwal

Designation :

Member

 

 

Name :

Mr. Vikas Garg

Designation :

Member

 

 

 

Remuneration Committee

Name :

Mr. Brij Behari Tandon

Designation :

Chairman

 

 

Name :

Mr. Pradip Kumar Banerji

Designation :

Member

 

 

Name :

Mr. Mukesh Aggarwal

Designation :

Member

 

 

Name :

Mr. Vikas Garg

Designation :

Member

 

 

 

Equity Warrant Committee

Name :

Mr. Mukesh Aggarwal

Designation :

Chairman

 

 

Name :

Mr. Sumer Chand Tayal

Designation :

Member

 

 

Name :

Mr. Vivek Garg

Designation :

Member

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

3,297,488

32.64

Bodies Corporate

1,032,963

10.22

Sub Total

4,330,451

42.86

(2) Foreign

 

 

 

 

 

Total shareholding of Promoter and Promoter Group (A)

4,330,451

42.86

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

3,636,622

35.99

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

363,832

3.60

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

1,766,525

17.48

Any Others (Specify)

 

 

Non Resident Indians

6,507

0.06

Sub Total

5,773,486

57.14

Total Public shareholding (B)

5,773,486

57.14

Total (A)+(B)

10,103,937

100.00

© Shares held by Custodians and against which Depository Receipts have been issued

 

 

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

 

 

Total (A)+(B)+(C)

10,103,937

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Trader of Methyl Based Tin PVC Heat Stabilizer, TPR and Calcium Carbonate.

 

 

Products :

·         Coated Calcite Powder

·         Methyl Tin Mercaptide

·         Epoxidised Soya Bean Oil

 

ITC Code

Product Descriptions

38029019

Coated Calcite Powder

38123090

Methyl Tin Mercaptide

15180039

Epoxidised Soya Bean Oil

 

 

PRODUCTION STATUS AS ON 31.03.2011

 

Particulars

Installed Capacity

Calcite Powder

7200000

ESBO

1800000

PVC/ TPR and other Components

3000000

Heat Stabilizer (Tin Mate)

600000

Total

12600000

 

 

GENERAL INFORMATION

 

No. of Employees :

105 (40 – In Office + 50 – In Factory + 15 – In Branch)

 

 

Bankers :

·         Oriental Bank Of Commerce

·         ICICI Bank

 

 

Facilities :

Secured Loans

As on 31.03.2011

As on 31.03.2010

Loans from Banks

 

 

Term Loans from Bank

38.337

23.325

Cash Credit

200.868

121.731

Vehicle loans

3.793

3.274

Interest Accrued

0.021

0.000

Total

243.019

148.330

Notes:

Working Capital Loan/Term Loan

Secured by way of first charge on hypothecation of companies entire stock of raw material, semi finished goods, consumable stores and spares, book debt, bills whether documentary or clean outstanding monies, receivable both present and future , ranking parri passu between Oriental Bank of Commerce and ICICI bank Limited. The Loan is further secured by way of first charge on all the movable fixed assets of the company both present and future ranking parri passu between Oriental Bank of Commerce and ICICI Bank Limited.

Charge over the fixed assests exclusively financed by Oriental Bank of Commerce and ICICI Bank Limited.

Mortgage of industrial property situated at No G-24-29 RICCO industrial area , Alwar under exclusive charge ICICI bank Limited

The Collateral securities issued to Oriental Bank of Commerce are:

a) Residential Property bearing Khasra No. 14/5/2, 6min. 15/1/2,9/2 & 10 min., Vill, Ghevra, Near Mundka Railway Crossing , Delhi

b) Commercial property at 34/1, East Punjabi Bagh, New Delhi - 26

c) Industrial Property at Industrial Growth Centre, IGC, Phase-1, Distt. Samba, Jammu

The Collateral securities issued to ICICI Bank Ltd. are:

a) Exclusive equitable mortgage of factory land and Building in the name of company situated at G-30. RIICO Industrial Area, Vigyan Nagar, Shahjahanpur Dist. Alwar, Rajasthan .

b) Exclusive equitable mortgage of residential property in the name of Vivek Garg Situated at Khasra no 710/201 in village Rithala, Delhi.

c) Exclusive equitable mortgage of property in the name of Seema Garg and Usha Garg situated at A 28, Khasra no 12/10 and 13/6, Village Kamruding Nagar, Nangloi, New Delhi

d) Exclusive equitable mortage of plot of land situated at Khasra no. 142/32, Situated at Village Khanjawala, Delhi owned by New Age Polypack Coats Pvt Limited

e) Exclusive equitable mortage of residential plot in the name of Usha Garg situated at Bo. B1, Upper basement floor, 1/34, Punjabi Bagh, New Delhi

* Vehicle loans from Banks are Secured against hypothecation of vehicle

** These loans are secured by way of personal gaurantee of the promoters of the company.

 

Unsecured Loans

As on 31.03.2011

As on 31.03.2010

Loans Directors and their relatives

0.366

12.362

Others

0.000

0.068

Total

0.366

12.430

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

RSPH and Associates (R. K. Batra and Company)

Chartered Accountants

Address :

906, Vikram Tower , Rajendra Place, New Delhi – 110008, Delhi, India

Tel. No.:

91-11-41538933

 

 

Associates/Subsidiaries :

·         Moonlite Technochem Private Limited

·         Sigma Plastic Industries

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15950000

Equity Shares

Rs. 10/-each

Rs. 159.500 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

10103937

Equity Shares

Rs. 10/-each

Rs. 101.039 Millions

 

 

 

 

 

Notes: Out of the above shares, 22,50,000 shares of Rs. 10 each were issued as fully paid up shares at a premium of Rs. 22 per share as per preferential allotment made on 29th March 2011, during the year.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2011

31.03.2010

31.03.2009

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

101.039

78.539

78.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

157.991

59.376

33.700

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

259.030

137.915

112.200

LOAN FUNDS

 

 

 

1] Secured Loans

243.019

148.330

79.000

2] Unsecured Loans

0.366

12.430

1.700

TOTAL BORROWING

243.385

160.760

80.700

DEFERRED TAX LIABILITIES

1.998

0.666

0.600

 

 

 

 

TOTAL

504.413

299.341

193.500

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

121.440

74.056

30.000

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

72.524

24.738

7.400

DEFERRED TAX ASSETS

0.000

0.000

(0.600)

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
90.768
91.600
91.600

 

Sundry Debtors
212.374
99.500
99.500

 

Cash & Bank Balances
1.192
3.700
3.700

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
151.639
31.600
31.600

Total Current Assets
455.973

286.369
226.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
116.330

64.932
68.400

 

Other Current Liabilities
12.052

13.501
0.000

 

Provisions
17.534

8.054
3.000

Total Current Liabilities
145.916

86.487
71.400

Net Current Assets
310.057

199.882
155.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.392

0.665

1.100

 

 

 

 

TOTAL

504.413

299.341

193.500

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

982.998

615.760

444.900

 

 

Other Income

13.792

7.312

1.500

 

 

TOTAL                                     (A)

996.790

623.072

446.400

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of Material/ Trading Goods

844.849

547.940

 

 

Other Manufacturing / Direct Expenses

61.863

36.690

 

 

 

Increase / Decrease in Inventories

(26.388)

(31.378)

 

 

 

Administrative Expenses

20.875

19.906

 

 

 

Personnel Expenses

17.096

11.281

 

 

 

Miscellaneous Expenses

0.273

0.273

 

 

 

TOTAL                                     (B)

918.568

584.712

428.300

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

78.222

38.360

18.100

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

27.369

16.512

9.800

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

50.853

21.848

8.300

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

8.458

3.247

2.000

 

 

 

 

 

 

NET PROFIT (E-F)                                 (G)

42.395

18.601

6.300

 

 

 

 

 

Add

Share of profit from Investment in Partnership firm

20.119

14.082

0.000

 

 

 

 

 

Less

Prior Period item

0.044

(1.083)

0.000

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

62.470

33.766

6.300

 

 

 

 

 

Less

TAX                                                                  (H)

1.709

3.482

3.100

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

60.761

30.284

3.200

Add

Prior Period Profit from Partnership Firm

0.136

0.000

0.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

38.410

12.706

0.000

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend on Equity Shares

10.104

3.927

0.000

 

 

Dividend Distribution Tax

1.678

0.653

0.000

 

BALANCE CARRIED TO THE B/S

87.525

38.410

12.706

 

 

 

 

 

 

Export Value

1.709

0.000

0.000

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Material

232.006

141.845

0.000

 

Capital Goods

1.282

0.000

0.000

 

TOTAL IMPORTS

233.288

141.845

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

7.72

3.86

N.A.

 

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

218.370

289.520

244.450

 Total Expenditure

199.890

271.110

225.980

 PBIDT (Excl OI)

18.480

18.410

18.470

 Other Income

0.900

0.000

6.030

 Operating Profit

19.380

18.410

24.500

 Interest

8.050

8.710

10.450

 Exceptional Items

0.000

0.000

0.000

 PBDT

11.330

9.700

14.050

 Depreciation

2.780

3.520

4.720

 Profit Before Tax

8.550

6.180

9.330

 Tax

2.640

1.910

0.000

 Reported PAT

5.910

4.260

9.330

Extraordinary Items       

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

5.910

4.260

9.330

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
6.10

4.86
0.71

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
6.36

5.48
1.41

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
10.82

9.37
2.45

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.24

0.24
0.05

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.50

1.79
0.63

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
3.12

3.31
3.17

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Check List by Info Agents

Available in Report (Yes / No)

1.       Year of Establishment

Yes

2.       Locality of the firm

Yes

3.       Constructions of the firm

Yes

4.       Premises details

Yes

5.       Type of Business

Yes

6.       Line of Business

Yes

7.       Promoter’s background

Yes

8.       No. of Employees

Yes

9.       Name of person contacted

No

10.   Designation of contact person

No

11.   Turnover of firm for last three years

Yes

12.   Profitability for last three years

Yes

13.   Reasons for variation <> 20%

--

14.   Estimation for coming financial year

No

15.   Capital in the business

Yes

16.   Details of sister concerns

Yes

17.   Major suppliers

No

18.   Major customers

No

19.   Payments terms

No

20.   Export / Import details

No

21.   Market information

--

22.   Litigations that the firm / promoter involved

--

23.   Banking Details

Yes

24.   Banking facility details

Yes

25.   Conduct of the banking account

--

26.   Buyer visit details

--

27.   Financials, if provided

Yes

28.   Incorporation details, if applicable

Yes

29.   Last accounts filed at ROC

Yes

30.   Major Shareholders, if available

Yes

 

 

REVIEW OF OPERATIONS:

 

The Company showed improvement in nearly all the spheres it operates in.

 

On consolidated basis, the gross turnover during the year (FY 2010-11) was Rs. 1197.558 millions as against Rs. 625.023 millions in the previous year (FY 2009-10), registering an overall increase of 91.60%. The Profit after Tax during the year was Rs. 63.462 as against Rs. 305.50 in the previous year, an overall increase of 107.73%.

 

DIRECTORS:

 

Mr. Nand Kishore Garg, Mr. Vivek Garg and Mr. Brij Behari Tandon, Directors of the Company retire by rotation and being eligible offers themselves for re-appointment. The Board recommends their re-appointment at the ensuing Annual General Meeting.

 

Mr. Jagdish Capoor, who was appointed as an Additional Director by the Board in its meeting held on 10th August, 2011 and who holds office upto the date of this Annual General Meeting, in terms of Section 260 of the Companies Act, 1956 and who is eligible for appointment as director of the Company. The Company has received a notice in writing under Section 257 of the Act in respect of the candidate, proposing his candidature for the office of Director of the Company. Accordingly, the Board recommends the members to appoint him as Director of the Company whose office shall be liable to retirement by rotation.

 

Mr. Nand Kishore Garg has voluntarily proposed to step down from the position of Managing Director of the Company and accordingly gave his resignation to the Board in its meeting held on 10th August, 2011 which was accepted by the Board of Directors. However, he proposes to continue as Non-Executive Director and Chairman of the Company.

 

Further, to manage the regular affairs and operations of the Company, the Board proposes to appoint Mr. Vikas Garg, an Executive Director of the Company to be appointed as Managing Director of the Company on vacancy caused due to resignation of Mr. Nand Kishore Garg from such position. Accordingly, the Board recommends the members to appoint Mr. Vikas Garg as Managing Director of the Company for the period of five years w.e.f. 10th August, 2011 on such terms and conditions including remuneration as may be agreed, from time to time, by the Board with Mr. Vikas Garg.

 

CREDIT RATINGS:

 

CRISIL

 

The Company has also obtained credit rating NSIC (National Small Industries Corporation Limited) - CRISIL: SE 1B, from CRISIL, a subsidiary of Standards and Poor’s Company of USA, which is one of the leading Companies in the world and India’s most influential rating agency. CRISIL ratings provide the most reliable opinions on the risk by combining its understanding of risk and the science of building risks frameworks, with a contextual understanding of business.

 

Risk rating of SE 1B indicates highest performance capability and moderate financial Strength.

 

Sr.No.    Name                                   City               Rating Assigned              Date Assigned                  Constitution

5829      Vikas GlobalOne Limited     New Delhi           SE 1B                               19-May-11                        Others

 

FAIR & EXHIBITIONS:

 

“Meet at Agra” 2010

 

The Agra meet of AFMCE in November, 2010 was their third participation with their full team of Marketing in TPR

compound and EVA compounds. Their presence in Agra is since 2008. They met there with their regular

moulders, exporters compounders and Manufacturers serving footwear industry. They also added with their standards and specification some new consumers of international standards. These consumers are serving some international brands of shoes like Zara, ID, Lee Cooper etc.

 

K-10 Exhibition

 

K-10 is the International exhibition held once in the every three year in DUSSELDORF, GERMANY. This exhibition is mainly for rubber-chemical and plastic. Our Company visited the exhibition to promote own products and to obtain export order. Most of European Companies and Asian Companies were participants of this exhibition. The Company discussed and found bright chances for Joint Venture with European Companies. This visit was very fruitful for Vikas GlobalOne Limited to explore the export opportunities and joint venture with other prosperous Companies.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

OVERVIEW 2010-11

 

VALUE CREATION

 

During the year the Company continued with its strategy of value creation and profitable growth. The Company further ventured into new areas and explored future growth opportunities. The Company added yet another milestone during the financial year 2010-11 by successfully commencing the plant of recycled PET at Shahjahanpur, Rajasthan. This product is environment friendly and will conserve lot of energy and will convert

plastic waste into useful value added PET. It has potential to earn valuable carbon credit for the Company.

 

The Company is setting up a plant for manufacturing Liquid Mixed Metal Stabilizers used in the Leathercloth and

Calendaring Industry at its Shahjahanpur, Rajasthan Plant.

 

The Company has also done pre REACH registration for two of its prime products viz. “TINMATE” - Methyl Tin

Mercaptide and “ADD FLEX”- Epoxidized Soya Bean Oil for exporting these to European Countries. Trial order has already been booked from a leading distribution company of Spain and exports will commence soon.

 

ECONOMY OVERVIEW AND GROWTH

 

The biggest threat to the growth of the Indian Economy in the year 2010-11 is raising inflationary pressure. Faced

with the persistent rise in prices, the RBI raised interest rates 10 times between March, 2010 to June, 2011. Even

though the year was marked by rising pricing mainly of food items and petroleum products and thus, the impact

spilled over to the rest of the economy with commodities and manufactured goods prices also showing an upward

trend. The inflationary pressure in India is being fed mainly by supply shortages of Global crude price and other

commodities.

 

During the year, the Indian Economy recorded a growth of around 8.5 percent as compared to 7.2 percent in the earlier year. Further, it is expected that the growth for 2011-12 to be in the range of 8.75 percent to 9.25 percent in 2011-12, however, with inflationary pressure has its impact on the growth and therefore by middle of the year the growth rate for the year is expected to be lower than the target for the year.

 

The global economic environment in 2011 is likely to be better than 2010. China and India would strive to become

more self reliant on feed stocks and polymers. Further, the growth has been achieved through its various large scale projects and setting benchmarks in respect of product quality, standards and services.

 

GLOBAL CONSUMPTION AND DEMAND SCENARIO

 

The Company’s products i.e. specialty additives and compounds fine use mainly in the manufacturing of polymer

based products and Company’s trading products i.e. Polymers and Elastomers are also in demand from similar

industry. Industry outlook of Polymer Industry thus guide the future of the Company.

 

Polymers

 

Polymers have found usage in all spheres of life with demand for better materials, greater functional use, more

economical packaging and versatile and durable all-weather products. The per capita consumption of polymers in

India is around 7.4 kg in 2010 from 4.6 kg in 2005. The average per capita global consumption of polymers is

estimated to be about 17 kg. The plastic and polymer industry has been expanding at a rate of 11% a year. Presently the consumption/demand is estimated at around 5.5 million tones. The demand estimates for all polymers including engineering polymers are projected at close to 14 million tones by 2014-15. India is one of the fastest growing polymer market in the world, and is expected to become the world’s third largest polymers market, after the US and China, within a decade. The significant domestic demand growth is expected from the user industries such as telecom, food and beverages, packaging, transportation and consumer durables, and from continued substitution of traditional materials like wood, metal, glass.

 

PVC

 

Polyvinyl chloride (PVC) constitutes the second-largest thermoplastic polymer manufactured worldwide after

polyethylene. Though the PVC market is back on its growth trajectory after experiencing collapsed demand in several markets, overall performance is expected to remain anemic over the short term as the industry struggles to emerge from problems such as sluggish recovery in the construction sector, lingering overcapacity and thinning operating margins.

 

PVC is also known as an ‘infrastructure plastic’ with the construction market accounting for about 60% of total demand. Developing countries in Asia-Pacific and the Middle East hold the best prospects for PVC in the long term. Among these, China and India represent the most promising markets due to large population size and infrastructural development initiatives. India is expected to witness an increase in demand due to the growth in infrastructure and packaging sectors. China represents the fastest growing market for PVC with a projected CAGR of 4.7% during the analysis period. In Russia and Ukraine, demand for vinyl continues to grow due to increased demand from the construction industry, regardless of the economic slowdown in the region. Higher growth rates are also anticipated in Middle East and Eastern Europe with contribution from the oil industry. Latin America is another region, which holds bright prospects for PVC growth during the forecast period owing to increase in construction activity.

 

PLASTIC AND POLYMER CONSUMPTION

 

World-wide, the plastics and polymer consumption will have an average growth rate of 5% and it will touch a figure of 227 million tons by 2015. Globally, it is projected that PET (Bottle grade) will have the highest growth rate of about 11% AAGR (Annual Average Growth Rate).

 

The AAGR amongst all polymers, followed by PET, PP, PE, PVC and PS in the descending order, as depicted in the Figure.

 

GROWTH OF PLASTIC INDUSTRY IN THE COUNTRY

 

India’s burgeoning middleclass is driving the demand for plastic and plastic products and today the sector is one of the fastest growing in the Indian economy. In India, the healthy growth in the packaging sector will boost

demand for extruded plastic products. At present extrusion process accounts for nearly 70 percent of plastics processing, while injection and blow moulding account for 20 and 5 percent respectively.

 

Following are some of the notable facts:

 

􀂾 India’s plastic industry is about 0.5% of India’s GDP;

􀂾 The export of plastic products yields about 1% of the domestic exports;

􀂾 50% turnover of the plastic industry is derived from the small scale companies where it has a large presence;

􀂾 Production of the plastic provides employment to an estimate of about 0.4 million people in the country;

􀂾 The processing of the plastic products involve approximately Rs 100 billion as an investment in the form of

fixed assets;

􀂾 20% of the industry turnover comes from small scale enterprises;

􀂾 Only 10 to 15% of the total market players can be categorized as medium scale enterprises.

 

INDIAN PLASTICS INDUSTRIES – PERSPECTIVE

 

Plastic polymers are classified into thermoplastics and thermosettings. Thermoplastics include elastomers (unvulcanised), polyvinyl chloride (PVC), polyethylene (PE), polystyrene (PS), polyurethane (PU) and other resins. Thermosettings include elastomers (vulcanized), polyethylene (crosslinked), phenolics, alkyds, polyesters. The product variation includes PVC 21%, HDPE 25%, LDPE 5%, PS 5%, PP 33%, LLDPE 8% and ABS 3%. Over the years, India has made significant progress in the industrial world with healthy economic growth. On purchase power parity basis, it is one of the top five global economics and is expected to be the third largest by the turn of this decade. Plastics, one of the fastest growing industries in India, have a vital role to play. Indian Plastics Industry is expanding at a phenomenal pace. Major international companies from various sectors such as automobiles, electronics, telecommunications, food processing, packing, healthcare etc. have set-up large manufacturing bases in India. Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest growing markets in the world.

 

The next two decades are expected to offer unprecedented opportunities for the plastic industry in India. This would necessitate industry initiatives to foster investments, grow the market, upgrade quality standards, enhance global participation, encourage Indian industry, to adopt and adapt to world class technology and manufacturing practices.

 

Indian plastics industries are enthusiastic about the acceleration of the growth engine in the next 3 to 5 years due

to capacity expansion of existing petrochemical complexes and setting up of new crackers in the country currently.

 

Domestic Demand for petrochemicals is expected to grow at a CAGR of 10 – 11 % driven by polymers HDPE, LLDPE, PP and PVC. Despite capacity additions, domestic polymer deficit is expected to continue at current levels, mainly on account of under capacity of PVC, thus, offering greater avenues to the company for further expansion through capacity building and thus, increasing overall revenue and profitability of the company, in same spirit, the company is already searching for strategic locations to add new plants.

 

For the plastic business perspective, Gujarat and Maharashtra appear attractive based on availability of raw materials, conducive environment and policy support for investments. The Company had already entered in the State of Gujarat through acquisition of land and shall target to complete setting-up and commissioning of plant by end of 2013. Further, the Company is also looking to acquire some existing plant in the state of Gujarat and Maharashtra or enter into a strategic joint venture to add new products to the kitty of the company through same.

 

FINANCIAL PERFORMANCE

 

Financial performance has been given separately in the Director's Report.

The Company is able to maintain its increasing trend in profitability. During the year, the Company achieved the gross turnover during the year (FY 2010-11) was Rs. 1197.558 millions as against Rs. 625.023 millions in the previous year (FY 2009-10). The Profit after Tax during the year was Rs. 634.62 as against Rs. 305.50 in the previous year.

 

Future Plan of Action/Expansion Plans

 

As the relevant industry is gearing up to cater to the growing demand, Vikas GlobalOne Limited, is all set to expand their business in a big way in the coming years. The Company has targeted impressive growth plans by

increasing the production capacities of the plants and is making continuous additions to the capacities of its

marketing and distribution set up. The Company is all set to establish two new plants at different locations. The

Company has massive investment plans in the coming time. These investments shall not be limited to India.

Further, the Company is poised to effectively market whatever it produces.

 

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

 

Chlorinated Parrafin Wax Plant

 

The Company proposed to put a project to manufacture 30,000 MT/annum of Chlorinated Paraffins (CP) at Dahej, Gujarat. The Company had applied to Gujarat Industrial Development Corporation (GIDC) specifying the strategic

advantages for putting the project at Dahej specified below along with the detailed project report in this regard:

 

1. There already exists a sizeable market in the Western region of which Dahej is a part;

 

2. Chlorine is a major raw material for this product. The installed capacity and availability of chlorine in and around

Dahej is fairly large and project will not suffer due to non availability of this raw material;

 

3. The availability of Normal Paraffins in India is limited and it will not be possible to run this project based on domestic availability. A large number of requirements will have to be imported. Dahej has locational advantage for import of Normal Paraffins etc.

 

Accordingly, the GIDC has made an offer-cum-allotment to the Company for the purpose of set up a unit for manufacturing of Chlorinated Paraffins Wax Hydrochloric Acid at Dahej-2 Industrial Estate, Distt. Bharuch, Gujarat.

 

 

AS PER WEBSITE DETAILS

 

PROFILE:

 

Subject, a BSE listed company, subject started business of trading and distribution of Petroleum and Petrochemical products. The company has since undergone backward integration of its business to manufacturing of high end products used in Plastic, Rubber, Footwear 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 locational 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 know how 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. Company is also actively working on establishing its new manufacturing units in western part of the country since it will help Company to mark its presence in unchartered territories of highly industrialized western geography of India. The locations will be near to sea ports providing greater, cheaper and easy scope of exports.


Company is contemplating to expand their current capacity with a view to tap the global markets especially in those countries wherein India has signed free trade agreements, which entitles Indian companies greater scope and larger benefits.


Company is also planning to open office of its subsidiary company in Singapore with dual purposes of launch its products in the global market and channelizing the imports at a much better price for its domestic requirements.

Company scrupulously complies with all the legal requirements enshrined under different statutes and laws.

One of the strengths of the company is its well qualified and skilled manpower, an ideal combination of enthusiastic young chargers and experienced and matured decision makers. The dynamic management team is led by young, Mr. Vikas Garg with an insightful entrepreneurial ability and dynamism. Ethics, integrity and transparency are the three pillars of the company. Good governance is the fundamental underpinning. Company has very renowned persons on its Board of Directors, which is yet another strength of the company.

Company has registered a substantial growth and consistent profit though out its journey from inception till today.

 

PROMOTERS / DIRECTORS

 

Company has very dynamic management directed by Board consisting of very well experienced, competent and renowned persons as members.

 

NAND KISHORE GARG

 

Shri. Nand Kishore Garg (61 years) M.Sc, LLB, D.Lit is a hardcore professional. He is Chairman cum Managing Director of the Company. He provides Strategic direction to the Company on diverse aspects.

He has 35 years of rich experience in the field of Petrochemicals and Polymers Industry.


He is ably aided by the following members of the Board:

 

VIKAS GARG

 

Vikas Garg (36 years) is a Commerce Graduate from Delhi University. He holds the Directorship in the Company since 1992-93 and has rich experience of more than 15 years in plastics and chemicals industries. He spearheaded the Group's diversification into plastics and chemicals and has been instrumental in establishing and nurturing business contacts with various global giants. He looks after the Finance, Procurement / Purchases and marketing operations of the Company. He plays an important role in project conceptualization and its effective implementation thereby contributing towards Top line and Bottom Line of the Company. He is a member of the Risk Management and Remuneration Committees of the Company.

 

BRIJ BEHARI TANDON

 

Brij Behari Tandon (Related IAS) (68 years) is M.A. (Economics) and LLB from the University of Delhi. He has served as Secretary to the Government of India and also as a member of the Securities & Exchange Board of India. He has also been the Chief Election Commissioner of India. Presently, he is also on the board of few renowned Companies such as Adani Power Limited, Canara Bank, Jaiprakash Power Ventures Limited, etc. The Company is immensely benefited by his innovative administration and human resource management. He is chairman of the Remuneration Committee of the Company.

 

PRADIP KUMAR BANERJI

 

Pradip Kumar Banerji (Related IAS) (67 years) has held very important positions with the Government of India. He served as Finance Secretary to Government of India (Insurance and External Finance). He has gathered vast and rich experience from his past engagements with institutions like World Bank, Asian Development bank, IFC, European Union, etc. The Company is benefited by his global connections and financial analytical capability which includes feasibility study for the new projects. He is chairman of the Risk Management Committee of the Company.

 

PURSHOTTAM DAS BHOOT

 

Purshottam Das Bhoot (80 years) is a Law Graduate and Company Secretary. He has 50 years of experience in handling legal and secretarial assignments during his long stint with various big business houses. He is also on the Board of Jindal India Limited and Bazaloni Groups Limited. He is providing very valuable support in the legal & secretarial matters of the Company. He is one of the members of Audit Committee of the Company

 

SUMER CHAND TAYAL

 

Sumer Chand Tayal (Retd. Director DDA) (65 years) is Civil Engineer. He during his association with Delhi Development Authority has gained rich experience in materials management while executing various construction / development projects. He plays a major role towards execution of new projects of the Company. He is also acting as a member of the Audit Committee and Chairman of the Shareholder's Grievance Committee

 

MUKESH AGGARWAL

 

Mukesh Aggarwal (44 years) is a fellow member of The Institute of Chartered Accountants of India and has vast knowledge in the field of finance. He has in depth knowledge of the financial sector, Taxation and Corporate Law and is providing valuable support to strengthen the internal controls in the Company. He is also the Chairman of the Audit Committee in the Company.

 

VIVEK GARG

 

Vivek Garg (34 Years) is a Commerce Graduate having experience of more than 10 years in the Industry. He is involved in the general administration and branch level controls in the Company. He is overseeing Supply Chain management and support services in the Company, which are vital for seamless operations in the Company. He also serves as a member of Shareholder's Grievance Committee in the Company.

 

 

FIXED ASSETS:

 

Tangible Assets:

 

Land – Leasehold

Buildings

Plant and Machinery

Furniture and Fittings

Vehicles

Office Equipments

Computer Equipments

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 54.39

UK Pound

1

Rs. 86.56

Euro

1

Rs. 69.30

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

4

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

43

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.