viz. men, money, material, machinery and method
TRANSCRIPT
1Annual Report 2012-2013
Our journey to enhance customer value and pursue cost leadership continues through improvements in manufacturing, sales and marketing and procurement of major inputs. Our main target is optimal utilization of 5 M’s viz. Men, Money, Material, Machinery and Method.
We aim to maintain special focus on the followings:
• Safety;ZeroHarmanywheretoanyoneassociatedwithVIKAS.
• Specialfocusoninputcosts.
• EnhancingCustomervalue.Meetingandexceedingtheirexpectationsinsupplyingbestqualityguarproducts.
• Usethebestteamtoworkefficientlyandeffectively.
• Tofulfillthesocialresponsibilitytowardthesociety.
Throughtheseefforts,wehaveaimedtorealizeourcompletepotentialandachievebenchmarklevelofperformance.
PERFORMANCE HIGHLIGHTS
2009 2010 2011 2012 2013
60000
50000
40000
30000
20000
10000
0
13,063.8312,158.07 11,995.27
13,265.9812,222.84
13,111.71
22,864.68
15,467.56
34,453.16
51,716.13
PBT
PATIN L
AC
S
GrowthinSales
NetSalesAndEaringsBeforeInterestAndTax(InLacs)
ProfitBeforeTaxAndProfitAfterTax(InLacs)
DividendPerShareandEarningPerShare
BookValuePerShare
2 Annual Report 2012-2013
NOTICENoticeisherebygiventhatthe25thAnnualGeneralMeetingoftheCompanywillbeheldonFridaythe27thdayofSeptember,2013 at 10.00 A.M. in the manufacturing unit located atRegisteredOffice of theCompany atRailwayRoad, Siwani-127046,Haryana,totransactthefollowingbusiness:-
ORDINARY BUSINESS
1. ToreceiveandadopttheauditedstatementofProfit&Lossforthefinancialyearended31stMarch2013,andtheBalanceSheetasonthedateandthereportsoftheDirectors and Auditors thereon.
2. Toconsideranddeclarefinaldividendfortheyear.
3. ToappointaDirectorinplaceofSmt.BimlaDeviJindalwhoretiresbyrotationandbeingeligibleoffersherselfforre-appointment.
4. ToappointDirectorinplaceofSmt.KaminiJindalwhoretires by rotation andbeing eligible offers herself forre-appointment
5. ToappointSmt.DeepikaAggarwalasregulardirector.She is appointedas additionaldirector on January 04,2013andbeingeligibleoffersherselfforre-appointment.
6. ToappointSh.NeerajChhabraasaregulardirector.HeisappointedasadditionaldirectoronJanuary04,2013andbeingeligibleoffershimselfforre-appointment.
7. To appoint M/s Arun K Agarwal & Associates,CharteredAccountants,NewDelhi,StatutoryAuditorsofthecompanytoholdofficefromtheconclusionofthisAnnual General Meeting until the conclusion of nextAnnualGeneralMeetingoftheCompanyandtofixtheirremuneration.
SPECIAL BUSINESS
8. To consider and if thoughtfit, topass the followingresolution, with or without modification(s), as anOrdinary Resolution:
“RESOLVED THAT pursuant to the provisions of section198, 269, 309, 310, 311 readwithScheduleXIIIandotherapplicableprovisions,ifany,oftheCompaniesAct, 1956 including any statutory amendment or re-enactmentthereofandsubjecttosuchconsent,approvalsand permissions asmay be needed, the remunerationpackage of Smt. Deepika Aggarwal, designated asIndependentDirectoroftheCompany,beandishereby
reappointedforaperiodoffiveyearsfromtheexpiryofhispresenttenureinthefollowingmanner:-
Remuneration includingsittingfees,reimbursementofexpenses, etc. to be notmore thanRs. 3, 60,000/- perannum.
9. To consider and if thoughtfit, topass the followingresolution, with or without modification(s), as anOrdinary Resolution:
“RESOLVEDTHATpursuanttotheprovisionsofsection198,269,309,310,311readwithScheduleXIIIandotherapplicableprovisions,ifany,oftheCompaniesAct,1956including any statutory amendment or re-enactmentthereof and subject to such consent, approvals andpermissions as may be needed, the remunerationpackage of Sh. Neeraj Chhabra, designated asIndependentDirectoroftheCompany,beandisherebyreappointedforaperiodoffiveyearsfromtheexpiryofhispresenttenureinthefollowingmanner:-
Remunerationincludingsittingfees,reimbursementofexpenses, etc. to be notmore thanRs. 5, 40,000/- perannum.
ByOrderoftheBoardofDirector ForVIKASWSPLIMITED
Sd/-Date:14.08.2013 (B.D.Agarwal)Place:SriGanganagar ManagingDirector
3Annual Report 2012-2013
NOTES:
1. AMemberentitledtoattendandvoteatthemeetingisentitled to appoint one ormore persons as proxies toattend and vote on a poll only instead of himself and a proxyneednotbeamemberoftheCompany.
2. Proxies, in order to effective,must be received at theRegd.Officeof theCompany,not less thanfortyeighthoursbeforethecommencementoftheAnnualGeneralmeeting.
3. Additional information, pursuant to clause 49 of theListingAgreementwith Stock Exchange, onDirectorsrecommended for appointment/ reappointment at theAnnual General meeting, is appearing in the Report and Accounts.
4. Members are requested to bring the admission slipsalong with their copy of the Report and accounts to the meeting.
5. Membersholdingsharesinphysicalformarerequestedtonotify/sendthechangeintheiraddressattheRegd.Office of the Company and holding shares in theelectronic form are advised to send the same information to their respective Depository Participant.
6. Membersholdingsharesinphysicalformanddesirousof making a nomination in respect of their shareholding inthecompany,aspermittedunderSection109AoftheCompanies Act, 1956, are requested to submit at theRegd.OfficeoftheCompanytheprescribedform2B.
7. TheRegisterofMembersoftheCompanyshallremainclosed from 14th September to 24th September 2013(bothdays inclusive) for thepurposeofDividendandAnnualBookClosure.
8. DividendontheEquityShares,ifdeclaredatthemeeting,willbepaidtothemenberswhosenamesappearintheRegisterofmembersoftheCompanyaftergivingeffectto all valid share transfer in physical form lodged with theCompanyoritsRegistrarsonSeptember13,2013.
In respect of shares held in electronic form, the dividend willbepaidtothose‘beneficiaries’whosenameappearon the statements of beneficial ownership furnishedbyNationalSecuritiesDepositoryLimitedandCentralDepositoryServices(India)Limitedforthispurpose,attheendofthebusinesshoursonSeptember13,2013.
9. The Securities and Exchange Board of India (SEBI)has been made mandatory for all companies to usethebankaccountdetails furnishedby thedepositoriesfordepositingdividends.Dividendwillbecredited tothe Member’s bank account through NECS wherevercomplete core banking details are available with thecompany. In case where the core banking details arenot available, dividendwarrantswill be issued to thememberswithbankdetailsprintedthereonasavailableinthecompany’srecords.
10. Shareholders who have not so far en-cashed theInterim/Final dividendwarrant(s) for various year asper the table given below are requested to seek issueof duplicate warrant(s) by writing to the companyimmediately.Shareholdersarerequestedtonotethatnoclaimsshall lieagainst theCompanyor thesaidFundin respect of any amounts which were unclaimed and unpaid for a period of seven years from the dates that theyfirstbecamedueforpaymentandnopaymentshallbemade in respect of any such claim. The amount ofDividend which remain unclaimed for the following years:
Sr. No Year Record Date UnclaimedAmount(Rs.)
1 2007-08 29.01.2008 1035280.632 2008-09 16.09.2009 2148330.003 2009-10 16.09.2010 1949387.004 2010-11 16.09.2011 1135708.505 2011-12 17.09.2012 2683378.00
InvitationtoparticipateintheGreenInitiativelaunchedbytheMinistryofCorporateAffairs
TheMinistry of Corporate Affairs (MCA) has permittedpaperless compliances by companies; vide its circularsNo. 17/2011 andNo. 18/2011 dated April 21, 2011 andApril29,2011respectively.MCAhasclarifiedthatservicesofdocuments toMembers throughe-mailwill constitutesufficientcomplianceswithSection53ofTheCompaniesAct, provided the Members are given an advanceopportunity to register theire-mail idsor changes if anytherein with the company.Pursuantthereto,weinviteourMemberstoparticipateintheGreenInitiativesbyregisteringtheire-mailidswiththeCompany to enable it to senddocuments required to besentundersection219oftheCompaniesActviz.AnnualReport and other documents such as Notices of General Meetings,PostalBallotNotices,ECSCreditsetc.byemail.
4 Annual Report 2012-2013
ADDITIONAL INFORMATION: -(InpursuanceofClause49ofTheListingAgreement)1. BriefprofileofSmt.DeepikaAggarwal:-Smt.Deepika
Aggarwal was appointed as additional director of the company and being eligible offers herself as regulardirector,hertenureisuptotheAnnualGeneralMeeting.
Smt. Deepika Aggarwal has been appointed by theBoard as an Additional Director w.e.f.04.01.2013.Smt. Deepika Aggarwal is a person with excellentacademicbackgroundandpossessesgoodeducationalqualifications. She is Master of Art. Considering andseeking the managerial capabilities, skills and herefficiency, yourDirectors recommend appointment ofSmt.DeepikaAggarwalasDirectoroftheCompany.
2. Brief profile of Sh. Neeraj Chhabra : - Sh. NeerajChhabra was appointed as additional director of thecompany and being eligible offers himself as regulardirector,histenureisuptotheAnnualGeneralMeeting.
Sh.NeerajChhabra has been appointed by the Boardas anAdditionalDirectorw.e.f. 04.01.2013. Sh.NeerajChhabraisapersonwithexcellentacademicbackgroundand possesses good educational qualifications. He ispost graduate in Pharmacy. Considering and seekingthemanagerialcapabilities,yourDirectorsrecommendappointmentof Sh.NeerajChhabra asDirector of theCompany.
3. BriefprofileofMrs.BimlaDeviJindal:-Smt.BimlaDeviJindal,Directorofthecompany,whoretiresbyrotationandbeingeligible,offersherselfforreappointment.
Smt.BimlaDeviJindalhasbeenappointedbytheBoardas an additionalDirectorw.e.f. 10.06.2005. Smt.BimlaDeviholdsaBachelor’sDegreeinCommercefromtheUniversityofHaryana.Shebelongs toa leadingGuarGum Industrialist family. Keeping in view her long experience in theGuarGum Industry, yourDirectorsrecommendre-appointingofSmt.BimlaDeviJindalasDirectoroftheCompany.
4. Brief profile of Mrs. Kamini Jindal: - Smt.. KaminiJindal,Directorofthecompanywhoretiresbyrotationandbeingeligible,offersherselfforreappointment.
Ms.KaminiJindalhasbeenappointedbytheBoardasan Additional Director w.e.f. 16.07.2012. Ms. Kamini
Jindalisapersonwithexcellentacademicbackgroundand possesses good educational qualifications. She isMasterofArtandMasterofPhilosophy.Sheistheyouthdiva in the board of the company. Considering andseeking attention and interest of youth, your Directors recommend appointment of Ms. Kamini Jindal asDirectoroftheCompany.
EXPLANATORY STATEMENT PURSUANT TO SECTION173(2)OFTHECOMPANIESACT,1956ITEM NO. 8Bytakingintoconsiderationtheincreasedbusinessvolumeof the Company and to match the remuneration packageof Mrs. Deepika Aggarwal proposed regular Director oftheCompanywith thepresentprevailingcompensationatthis level in the industry, it is appropriate the remuneration package of Mrs. Deepika Aggarwal should be at Rs.3,60,000/-perannuminthepresentsituations.Therefore it isproposed,on therecommendationmadebythe‘‘BoardofDirectors’oftheCompany,theremunerationpackage ofMrs. Deepika Aggarwal including sitting fees,reimbursementofexpensesetc.isnottobemorethanRs.3,60,000/- for a period of five years from the date of theexpiryofherpresenttenure.ITEM NO. 9Bytakingintoconsiderationtheincreasedbusinessvolumeof the Company and to match the remuneration packageof Mr. Neeraj Chhabra proposed regular Director of theCompanywiththepresentprevailingcompensationatthislevel in the industry, it is appropriate the remuneration packageofMr.NeerajChhabrashouldbeatRs.5,40,000/-per annum in the present situations. Therefore it isproposed,on therecommendationmadebythe‘‘BoardofDirectors’oftheCompany,theremunerationpackage of Mr. Neeraj Chhabra including sitting fees,reimbursementof expenses etc. isnot tobemore thanRs.5,40,000/- for a period of five years from the date of theexpiryofhispresenttenure.
ByOrderoftheBoardofDirector ForVIKASWSPLIMITED Sd/-Date:14.08.2013 (B.D.Agarwal)Place:SriGanganagar ManagingDirector
5Annual Report 2012-2013
DIRECTORS REPORTToTheMembers,
TheDirectorstakepleasureinpresentingthetwentyfifthAnnualReportoftheCompanywiththeauditedaccountsforthefinancialyearendedMarch31,2013.
HIGHLIGHTS OF PERFORMANCE
• Operatingearningsbeforeinterestandtaxincreasedin2013by213.45%toRs.54327.34lakhs,fromRs.25452.36lakhsin2012.
• Revenuefromfinancialoperationsincreasedin2013by273.26%to290635.52lakhsfromRs.106357.26lakhsin2012.
Financial Results(Rs.InLacs)
Particulars Year ended 31.03.2013
Year ended 31.03.2012
Revenue from operations 290635.52 106357.26Other income 565.34 202.99Totalexpenditure 232329.80 76624.08Financecosts 2611.21 2587.68Profitafterfinancecostbutbeforedepreciation 56259.85 27348.49Depreciationandamortizationexpenses 4543.72 4483.81Profitbeforetax(PBT) 51716.13 22864.68Taxexpenses 17262.97 7397.12Profitfortheyear(PAT) 34453.16 15467.56Appropriations
Proposedfinaldividend 1374.40 1374.40Taxondividend 233.58 224.29TransfertoGeneralReserve 3446.00 1548.00Reserves&Surplus 138348.02 105502.84
DIVIDEND
YourDirectorsarepleasedtorecommendafinaldividendofRs.1perequityshareofRs.1/-each.Thetotaloutgoforthecurrentfinancialyearamounts to160.8millions, includingdividenddistributiontaxofRs.23.36Millions,asagainstRs.137.44Millions including dividend distribution tax of Rs.22.30Millionsinthepreviousyear.
FUTURE PROSPECTS
Guar Gums main demand is increasing in the food and oil and gas segment. Guar gum polymers demand in the food segment is increasing @ 7 to 8% in the developedcountrieswhereasitisshowinganincreaseof12-15%inthedeveloping countries. Demand of Guar polymers for oil and gaswellsdrillingandfracturingisincreasingdaybydayastheglobalcrudeoilpricesareonincrease.Company’sR&Dis constantly involved in developing newer guar products for food and other industrial applications for the effective controlofprocessingproblemsand the same is conducivein expanding global guar polymers market. International
marketforcertifiedorganicguarpolymerisalsoincreasing.Taking all these prospects together, the demand for guarpolymers is bound to increase in the years ahead. So thefutureprospectsareexpectedtobeevenbetter.
INTERNATIONAL QUALITY STANDARDS AND THEIR CERTIFICATIONS-
(A) AnISO9001:2000-CertifiedCompany-
100%EOUunitsofthecompanyhavebeencertifiedasISO9001:2000byDNV–aNorvagianCompany.Sothecompanyismeetingall thequalitycontrolparametersassetoutbyDNV.
(B) HazardsAnalysisofCriticalControlPoints(HACCP)-
Theproductmanufacturedbythecompanyisalsousedinthefoodproductionasthickeningandbindingagent.The user customers are multinational (MNC’s) foodproducers’ viz. Nestle (Friskies),Mars (Master Food),Heinz,Saralee,Unilever,andCSM.Tosourcetheirkeyraw materials, these MNC’s prefer HACCP certifiedvendors.EmployingHACCPintheproductionsystem
6 Annual Report 2012-2013
one can check the following contaminations:
- Physical
- Chemical
- Microbial
(C) GoodManufacturingPractices(GMP)
Company’s 100%EOUunits are certifiedWHOGoodManufacturingPractices (WHO-GMP).GuarPolymersproducedusingGMPisincludedintheFoodChemicalCodex (FCC) and approved for food use. Therefore,GMP ensures the customers that the products aremanufactured in good and hygienic conditions.
FOREIGN EXCHANGE EARNING AND OUTGOINGS
The detail of foreign exchange earnings and outgoingsis provided in page no. 8 of the annual report under AnnexureBtoDirectorsReportoftheAnnualReport.
CONSERVATION OF ENERGY
TheinformationonConservationofEnergyrequiredunderSection217(I)(e)oftheCompaniesAct,1956readwithRule2oftheCompanies(DisclosureofParticularsintheReportofBoardofDirectors)Rules,1988isprovidedinpage8underAnnexureAtoDirectorsReportoftheAnnualReport.
DIRECTORS’ RE-APPOINTMENT
Mrs. Bimla Devi Jindal retires by rotation and beingeligible offer herself for re-appointment at this AnnualGeneral Meeting. The Board Governance Committee hasrecommended their re-appointment for consideration oftheshareholders.AbriefprofileofMrs.BimlaDeviJindalisgiveninthenoticeofAnnualGeneralMeeting.
Mrs.KaminiJindalretiresbyrotationandbeingeligibleofferherselfforre-appointmentatthisAnnualGeneralMeeting.TheBoardGovernanceCommitteehasrecommendedtheirre-appointment for consideration of the shareholders. AbriefprofileofMrs.Kamini Jindal isgiveninthenoticeofAnnualGeneralMeeting.
Mrs. Deepika Aggarwal being eligible offers herselffor appointment at this Annual General Meeting as aregular director. The Board Governance Committee hasrecommended her appointment for consideration of the shareholders.A brief profile ofMrs.DeepikaAggarwal isgiveninthenoticeofAnnualGeneralMeeting.
Mr. Neeraj Chhabra being eligible offers himself forappointment at this Annual General Meeting as aregular director. The Board Governance Committee has
recommended his appointment for consideration of the shareholders.AbriefprofileofMr.NeerajChhabraisgiveninthenoticeofAnnualGeneralMeeting.
STATUTORY AUDITORS’ APPOINTMENT
The Company’s Auditors M/s Arun K Agarwal &Associates.,CharteredAccountants,NewDelhi,whoretireat the ensuing Annual General Meeting of the company,areeligible for re-appointment.Theyhaveconfirmed theireligibilityunderSection224ofTheCompaniesAct,1956,forre-appointmentasAuditorsoftheCompany.
COST AUDITORS’ APPOINTMENT
AspertherequirementoftheCentralGovernment,andinpursuanceofSection233BofTheCompaniesAct,1956,yourcompanycarriesoutanauditofcostrecords.Subjecttotheapproval of the Central Government, yourDirectors haveappointedM/s Baghuguna&Company, to audit the costaccountsofthecompanyforthefinancialyear2013.
FIXED DEPOSITS
During theyearunder review,yourCompanyhasneitherinvited nor accepted any fixed deposits from the publicor its employeeswithin themeaningof section58Aof theCompaniesAct,1956andRulesmadethereunder.
PARTICULARS OF EMPLOYEES
TherearenoemployeesintheCompanywhoseparticularsare required to be given under Section 217(2A) of theCompaniesAct,1956readwiththeCompanies(ParticularsofEmployees)Rules,1975,asamendedfromtimetotime.
DIRECTORS RESPONSIBILITY STATEMENT
OnbehalfoftheDirectorsweconfirmthatasrequiredunderSection217(2AA)oftheCompaniesAct,1956:-
(a) InthepreparationoftheAnnualAccounts,theapplicableaccountingstandardshavebeenfollowedandthatnomaterialdeparturesismadefromthesame;
(b) wehaveselectedsuchaccountingpoliciesandappliedthem consistently and made judgments and estimates thatarereasonableandprudentsoastogivetrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitsoftheCompanyfortheperiod;
(c) we have taken proper and sufficient care for themaintenance of adequate accounting records inaccordancewith theprovisionsof theCompaniesAct,1956forsafeguardingtheassetsoftheCompanyandfor
7Annual Report 2012-2013
preventinganddetectingfraudandotherirregularities;and
(d) we have prepared the annual accounts on a goingconcernbasis.
CORPORATE GOVERNANCE
We believe Corporate Governance is at the heart ofShareholder value creation. Our governance practices aredescribedseparatelyatpage9oftheAnnualReport.Wehaveobtained a certification from Practing Company Secretaryoncompliancewithclause49ofthelistingagreementwithIndianStockExchanges.Thecertificateisgivenatpage15ofthe Annual Report.
COMMUNITY DEVELOPMENT
AspartofitsCorporateSocialResponsibility,yourcompanyundertakes a range of activities to improve the living conditionsoftheweakersectionslivingnearitsplants.Theseinclude education, healthcare, vocational guidance and rural development.
During the year under review, Skill development trainingprogrammes were imparted to unemployed youth in partnershipwithspecializedNGO’s.
On the health and nutritional front, your company took variousinitiativesforbetterhealth.
Yourcompanyalsodistributed freeGuarSeeds tovariousfarmers of Rajasthan.
OCCUPATIONAL HEALTH & SAFETY
Your Company engages different programmes targetingcritical areas across all the units to address risk associated withoperations.Effectivenessoftheseprogrammesisbeingconstantlyassessedbythetopmanagement.
AbehaviorbasedsafetytrainingprogrammewaslaunchedinMay2012.Theprogrammetrainspeoplesothattheycanprevent injuries at the workplace and at the home.
Our line managers are provided with different types of risk assessment tools to help them identify risk and decide on appropriate control measures. Hazard identification andRisk Assessment workshops are being continued at sitestorefineanticipationcapabilityamongst theemployeesbyenhancingtheirhazardobservationskills.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Theinternalcontrolsystemofthecompanyiscommensurate
with the size, scale and complexity of its operations. It isbeing constantly assessed and strengthened with new/revisedstandardoperatingproceduresandrobust internaland information technology controls.
The formalized systems of control facilitate effectivecompliancesasperClause49oftheListingagreementwiththestockexchange.
TheCompany’s internal audit department objectively andindependently tests the design and operating effectiveness oftheinternalcontrolsystemtoprovideacredibleassurancetotheBoardandAuditCommitteeregardingtheadequacyandeffectivenessoftheinternalcontrolsystem.Theinternalaudit function monitors the effectiveness of controls, and alsoprovidesanindepenedentandobjectiveassessmentoftheoverallgovernanceprocessesintheCompany,includingthe application of a systematic risk management framework.
InternalauditplaysakeyrolebyprovidinganassurancetotheBoardofDirectors,andvalueaddingconsultancyservicetothebusinessoperations.
ENHANCING SHAREHOLDERS VALUE
Your company believes that its Members are among itsmostimportantstakeholders.Accordinglyyourcompany’soperations are committed to the pursuit of achieving high levels of operating performance and cost competitiveness, consolidating and building for growth, enhancing theproductive assets and resourcebase andnurturingoverallcorporate reputation. The company is also committed increatingvalueforitsotherstakeholdersbyensuringthatitscorporateactionspositivelyimpactthesocio-economicandenvironmental dimensions for the society for sustainablegrowth and development.
INDUSTRIAL RELATIONS
The relationwith employees at all levels has been cordialthroughout the year. The Company has no employeedrawing remuneration above the limitmentioned 217(2A)of theCompaniesAct, 1956 and accordingly no statementisannexed.
DELISTING OF SHARES
Pursuant to Regulation 7 of Securities and Exchange Boardof India (Delisting ofEquityShares)Regulations,2009(“DelistingRegulations”),Companyhasappliedforvoluntary delisting of its equity shares from followingregional stock exchanges where the securities of the
8 Annual Report 2012-2013
companywerelisted,otherthanBombayStockExchangeLimited(BSE):
• TheDelhiStockExchange,NewDelhi
• TheJaipurStockExchange,Jaipur
• TheAhemdabadStockExchange,Ahemdabad
• TheCochinStockExchange,Cochin
AsperDelistingRegulation,Company’sSecuritiescanbedelistedfromRegionalStockExchangesifthesharesofthecompanycontinuetobelistedonBombayStockExchange(BSE). Thebenefitsaccruingtotheinvestorsbykeepingtheequityshares listedontheseStockExchangesdonotcommensurate with the cost incurred by the companyfor the continued listingon theseStockExchanges. Theshareholders in theregionof theseStockExchangeswillnotsufferduetodelistingasBombayStockExchangehasnationwidetradingterminals.
ACKNOWLEDGMENTS
Your Directors take this opportunity to thank all stake holders - customers, vendors, banks, regulatory and governmentauthorities, and Stock Exchanges for their continuedsupport. Your Directors also acknowledge with thanks, the supportextendedbyFinancial Institutions.TheBoardalsoplaces on record their appreciation to all employees for their commitmentandwholeheartedco-operation towardscompany.
ByOrderoftheBoardofDirector
ForVIKASWSPLIMITED
Sd/-
Date:14.08.2013 (B.D.Agarwal)Place:SriGanganagar ManagingDirector
ANNEXURE TO DIRECTOR’S REPORT
A. (a) CONSERVATIONOFENERGY:-
As a part of ongoing energy saving programme your companyhasengagedanefficientteamtoexaminethepossibilityofenergyconservationatalloperationlevels,especiallyonhigher loadmachines.Sincereeffortsarebeingmadetoimprovethepowerfactorandreducetheoverall energy consumption.
The company has taken the following steps towardsenergyconservation:-
(1) Frequentcheckingofthecapacitors;
(2) replacementofhighpowerfactorelectricmotors;
(3) timely greasing of the bearings of all the heavymachines;
(4) installationofservostabilizertoboostthevoltage;
(5) thedetailoftotalenergyconsumptionareasunder:
Year2012-13Electricity
Purchased units KWH 28389785Totalamount Rs.(inmillions) 175.99Rate/Unit Rs. 6.20RateperMT Rs. 5558
HSD OilQuantityofHSD KL 2901TotalCost Rs.(inmillions) 129.05AverageRate/L Rs. 44.48RateperMT Rs. 3988
LPGQuantity Cylinders 21141TotalCost Rs.(inmillions) 76.74AverageRate/Cylinder Rs. 3629.91RateperMT Rs. 2424
B. FOREIGN EXCHANGE EARNING & OUTGOING:
Activities relating to exports, initiative taken toincrease exports, development of new markets of itsmanufacturedgoodsandexportplans:
YourCompany is the country’s leadingmanufacturerexporterofguarwater-solublepolymers.Thecompanyhas always given utmost priority to earn valuableforeignexchangeinthelargerinterestofthenation.
Rs. In lacsTotalforeignexchangeearningsduringtheyear 210684.26Totalforeignexchangeusedduringtheyear 10.61Netforeignexchangeearnedduringtheyear 210673.65
9Annual Report 2012-2013
TheDirectorsofthecompanyarepleasedtopresenttheCompany’sreportonCorporateGovernancefortheyearendedMarch31,2013.COMPANY’S PHILOSOPHYOur name and logo reflects our philosophy and policy.“Vikas”meansdevelopment;intermsofthoughtanddeed.VikasisaShiningStarinred,overanovalencompassingourname,isourconstantremindertoout-shineothers.VikasWSPLimitedwouldliketobeknownasan‘excellent’Companyintermsofthequalityofgovernance,theproductsit manufactures and trades in, in Customer Services, infair dealings with its stakeholders and in the standards of individual and Company performance. The company hasa strong legacy of fair, transparent and ethical governance practices. We believe good governance is an essentialingredient of good business, good governance and goodbusinesshavemanythingsincommon;participatorydecisionmaking, accountability, responsiveness, transparency,effectivenessandefficiencyamongothers.ThecompanyisincompliancewiththerequirementsstipulatedunderClause49oftheListingAgreementsenteredintowiththeStockExchangeswithregardtocorporategovernance.VIKAS is led by a strong, efficient and independentBoard,whichprovides theCompanystrongoversightandstrategiccounsel.Thecompanyhasestablishedsystemsandprocedure toensure that theBoardremainswell-informedandwell-equippedtofulfillitsoversightresponsibilitiesandto provide the management, the strategic direction it needs tocreateforlong-termshareholdersvalue.For us good governance and good business is not adestinationbutacontinuingjourneywhichisleadbystrong,efficientandcompetentboard.1. BOARD OF DIRECTORSThecurrentpolicyoftheCompanyistohaveanexecutiveChairmanwho is also theManagingDirector. There are atotal of eightdirectors in the boardofwhich independentdirectorsconsistsof63%.AllDirectorsexceptNon-executiveDirectorshave longexperience in theGuarGumIndustry.NoneoftheNon-executiveDirectorsisresponsibleforday-to-dayaffairsofthecompany.
TheCompositionandcategoryofDirectorsintheBoardoftheCompanyare:-Name of the
Director
category Total
Director
Ship
Totalno.ofmembership
oftheCommitteesof
Board
TotalNo.ofChairmanshipoftheCommitteesofBoard
Member-shipinaudit/Investorgrievance committees
Member-ship in other committees
Chairman-ship in audit/investor grievance committees
Chairman-Shipothercommittees
1.Sh.B.D.Agarwal Chairmancum ManagingDirector
4 2 1 - 1
2.Smt.BimlaDevi ExecutiveDirector
4 - - - -
3.Smt.KaminiJindal ExecutiveDirector
2 1 - - -
4.Sh.RaviSharma* Independent Director
2 2 1 2 1
5.Sh.RakeshJindal* Independent Director
2 2 1 2 -
6.Smt.DeepikaAggarwal Independent Director
2 1 1 - -
7.Sh.NeerajChhabra Independent Director
2 2 1 2 -
8.Sh.KishanLal Independent Director
1 - - - -
9.Sh.VishnuBhagwan Independent Director
1 - - - -
10.Sh.R.A.Mittal Independent Director
1 1 - 1 -
*Sh.RaviSharmaandSh.RakeshJindalresignedfromdirectorshipon04.01.2013.
Notes :- 1. While considering the total number of directorships,
directorships in private companies have also beenincluded.
DetailsofBoardmeetingheldduringthefinancialyear2012-13.Duringthefinancialyear2012-13,15(fifteen)boardmeetingswereheldandthegapbetweentwomeetingsdidnotexceedfourmonths.Thedatesonwhichsaidmeetingswereheldare as follows:10.04.2012, 31.05.2012, 28.06.2012, 16.07.2012, 24.07.2012,14.08.2012,29.08.2012,9.11.2012,20.11.12,4.01.13,29.01.2013,12.2.2013,28.2.2013,28.03.2013and30.03.2013.Detailed Agenda notes and the informations requiredto be given in terms of Companies Act, 1956 and ListingAgreementwerecirculatedtotheBoard.Thenecessaryquorumwaspresentforallthemeetings.AttendanceattheBoardmeetingandlastAnnualGeneralMeeting
Name of the Director No.ofBoardmeetings Attended
Attendance at the lastAGMheldonSeptember29,2012
Sh.B.D.Aggarwal 13 Yes
Smt.KaminiJindal 11 Yes
Smt.BimlaDevi 15 No
CORPORATE GOVERNANCE
10 Annual Report 2012-2013
Name of the Director No.ofBoardmeetings Attended
Attendance at the lastAGMheldonSeptember29,2012
Sh.KishanLal 7 Yes
Sh.VishnuBhagwan 7 Yes
Sh.RaviSharma* 9 Yes
Sh.RakeshJindal* 3 Yes
Sh.R.A.Mittal 5 Yes
Sh.NeerajChhabra# 4 -
Smt.DeepikaAggarwal# 3 -*Sh. Ravi Sharma and Sh. Rakesh Jindal resigned from directorship on04.01.2013.# Sh. Neeraj Chhabra and Smt. Deepika Aggarwal were appointed as adirectorw.e.f.04.01.2013.
BRIEF PROFILE OF DIRECTORSThe Board of Directors comprises of highly renownedprofessionals drawn from diverse fields. They bring withthemwiderangeofskillsandexperiencetotheBoard,whichenhancesthequalityoftheBoard’sdecisionmakingprocess.BriefprofileoftheCompany’sBoardofDirectorsisasunder:• Mr.B.D.Aggarwal(ManagingDirector&Chairman) Mr.B.D.Aggarwal isawellknownandtrustedname
forGuarGumIndustry.Heisoneofthemostrespectedbusinesspersonalities inIndia.Notonlyforguarcropharvesting farmers he is a helping hand but also toothers,may it be on farming end or educational end.He has introduced new standards in management,efficiency and corporate social responsibility to anindustry he has helped transform.
Mr. Aggarwal is the Founder-Promoter and currentChairman andManagingDirector of the company. Inthe year 1988 VIKASWSP LIMITEDwas formed outhis efforts. Entire journey ofVIKAShas reachedhighpeaksallbecauseofdedicatedandsincereeffortsofMr.Aggarwal. It is because of his efforts only that today,VIKASWSPLIMITEDisthelargestguargumexportingindustry in India.
Under his leadership,VIKAS has achieved significantimprovements in the areas of guar gum manufacturing maybeitatorganicendorqualityend.
• Mrs.BimlaDeviJindal(ExecutiveDirector) Mrs. Bimla Devi Jindal, wife of Mr. B.D. Aggarwal
belongingtothepromotergroupisanExecutiveDirectorinthecompany.ShehasbeenappointedbytheBoardin2005.SheholdsaBachelor’sDegreeinCommercefromtheUniversityofHaryana.ShebelongstoaleadingGuarGumIndustrialistfamily.Herlongtermexperienceandassociation with Guar Gum industry is helping and enlighteningtheglorypathsofVIKAS.
• Mrs.KaminiJindal(ExecutiveDirector) Mrs. Kamini Jindal, belonging to promoter group is
an Executive Director in the company. She has been
appointed by the Board in 2012.Ms.Kamini Jindal isa person with excellent academic background andpossessesgoodeducationalqualifications.SheisMasterofArtandMasterofPhilosophy.Sheistheyouthdivain the board of the company. She is the daughter ofMr. B.D. Aggarwal and Bimla Devi Jindal, from herchildhood she has taken keen interest in the working of theVIKAS.HerlongtermassociationwithGuarGumIndustryhasbroughtimmensevaluetotheboard.
• Mr.KishanLal(IndependentDirector) Mr.KishanLal, IndependentDirectorof thecompany
has been appointed by the Board as an additionalDirector w.e.f. 27.10.2007. He holds a Master DegreeinScience.HeistheformerDirectorGeneralofPolice,Government ofRajasthan.Mr.KishanLal is having along term experience to enforce the law & orders. Ahighly disciplined personality with vast knowledge of legal aspects ultimately results in value addition to the efficiencyandeffectivenessoftheBoard.
• Mr.RamAwtarMittal(IndependentDirector) Mr. Ram Awtar Mittal, Independent Director of the
company has been appointed by the Board as anadditional Director w.e.f. 11.08.2008. He has retiredfrom Indian Revenue Services and having longexperienceinAccounts,Auditandtaxation.Presently,heischairmanoftheAuditCommitteeinthecompany.Akeenobserverofminutedetailsoffactsandfigures,hisobservationsishelpingingrowthandexpansionofthe company.
• Mr.VishnuBhagwan(IndependentDirector) Mr. Vishnu Bhagwan, Independent Director of
the company has been appointed by the board asan additional Director w.e.f. 27.10.2010. He was amember of the Indian Administration Service (IAS).Alsoheismasterinartsandphilosophy.Moreoverheis agraduate inLLB.Havingvastknowledgeof legalaspecthisprofessionalismisbeingreflectedincompanydecisions.
• Mr.NeerajChhabra(IndependentDirector) Mr. Neeraj Chhabra, Independent Director of the
company has been appointed by the Board as anAdditional Director w.e.f. 04.01.2013. Mr. NeerajChhabraisapersonwithexcellentacademicbackgroundand possesses good educational qualifications. He ispost graduate in Pharmacy. Having vast knowledgeaboutchemicalaspects,hisexpertiseisleadingcompanyonhighqualitymanufacturingguargumpowder.
• Mrs.DeepikaAggarwal(IndependentDirector) Mrs. Deepika Aggarwal, Independent Director of
the company has been appointed by the Board as anAdditional Director w.e.f. 04.01.2013. Mrs. DeepikaAggarwalisapersonwithexcellentacademicbackgroundand possesses good educational qualifications. Sheis Master of Art. Board has gained highest level of
11Annual Report 2012-2013
managerialefficienciesasthemanagementcapabilitiesofefficientpersonnelareutilizedbytheboard.
Journey of Vikas through its entire 25 years has been glorious and profiteering all because of the keen interest and efforts of the Directors of the company in its working and decision making.
REMUNERATION POLICY(a) RemunerationPolicyforExecutiveDirector: Subject to the approval of the Members and other
approvalsasmayberequiredundertheCompaniesAct,1956,theremunerationofManagingDirectorisdecidedby the Board of Directors on the recommendation ofthe Compensation Committee. In determining theremuneration, the compensation committee takes into considerationthesizeoftheCompany’soperationsandtheonerousresponsibilityrequiredtobeshoulderedbythe incumbent, the remuneration paid by comparableconcerns and the performance of the company. Theirrespective annual salaries are as under:
S. No. NameoftheDirector Salary(Rs.)1 Mr.B.D.Aggarwal 21,00,0002 Mrs.BimlaDeviJindal 3,00,0003 Mrs.KaminiJindal 6,00,000
(b) RemunerationpolicyofIndependentDirector: Inrecognitionofthecontributionandthetimespenton
the company’s business and taking into considerationthesizeandthecomplexityoftheCompany’soperationthe remuneration of Independent directors is fixedafter the approval dully taken from shareholders in the Annual GeneralMeeting. Their respective annualremunerationwillbenotmorethanasunder:
S. No.
NameoftheDirector
Remuneration(Includingsitting fees and
disbursementofexpensestobenotmorethan)(Rs.)
1 RamAwtarMittal 7,50,0002 VishnuBhagwan 7,50,0003 KishanLal 7,50,0004 Deepika Aggarwal 3,60,0005 NeerajChhabra 5,40,000
CODE OF CONDUCTThe Board of Directors has approved a Code of BusinessConduct and Ethics which is applicable to the Membersof theBoardandallemployees in theManagementgrade.Thecodehasbeenpostedonthecompany’swebsitewww.vikaswspltd.in.The code lays down the standard of conduct which isexpected to be followed by the concerned Directors andthe designated employees in their business dealings andin particular on matters relating to conflict of interests,briberyandcorruption,integrityofaccountingandfinancialreporting,faircompetition,CorporateSocialResponsibility,
concern for sustainable development, concern foroccupational health and safety, use of licensed software, email and internet and corporate communications.All theboardmembersandseniormanagementpersonnelhaveconfirmedcompliancewiththecode.2. AUDIT COMMITTEE TheCompanyhassetupitsAuditCommitteeincompliancewiththeprovisionsofClause49oftheListingAgreementsentered into with the Stock Exchanges read with Section292Aof theCompaniesAct,1956notonly in lettersbut inspirit also.The committee is reconstituted on 10.06.2005, 07.03.2006,27.04.2009,04.01.2013&28.02.2013.Sh.RamAwtarMittal has been appointed as chairman ofthiscommittee.Hehassoundknowledgeinfinance,taxationandaccountsandhaslongexperienceinthisindustry.Sh.RakeshJindalandSh.RaviSharmahaveresignedfromthe directorship of company on 04.01.2013. Smt. DeepikaAggarwalhasresignedfromthemembershipandSh.RamAwtar Mittal and Sh. Neeraj Chhabra are appointed asmemberofthecommittee.ThetermsofreferenceoftheAuditcommitteeisverywideandincludesoverseeingtheCompany’s:-* Financialreportingprocessanddisclosureofitsfinancial
information;* torecommendtheappointmentofinternalauditors;* toreviewinternalcontrolsystems;* toreviewCompany’sfinancialandriskmanagementpolicies;* thescopeofinternalauditincludingtheobservationsof
theauditors;* majoraccountingpolicies,practicesandentries;* to ensure the compliances with the accounting
standards, Listing Agreement and other legalrequirementconcerningwiththefinancialstatementsoftheCompany;
* relatedpartytransactions,ifany;* toreviewthequarterly,half-yearlyandannualfinancial
statementsbeforetheyaresubmittedtotheBoard.ThecompositionoftheAuditCommitteeandthedetailsofmeetingsattendedbyitsmembersaregivenbelow:
NameofDirector Designation Attended
16.07.12 14.08.12 09.11.12 04.01.13 12.02.13 28.02.13
Sh. R.A. Mittal# Chairman - - - - - -
Sh.RaviSharma* Ex-Chairman Yes Yes Yes Yes - -
Sh.RakeshJindal* Member Yes Yes Yes Yes - -
Smt.KaminiJindal Member Yes Yes Yes Yes Yes Yes
Smt.DeepikaAggarwal** Member - - - - Yes Yes
Sh.NeerajChhabra Member - - - - Yes Yes#Sh.R.A.Mittalisappointedasthechairmanofthecommitteeon28.02.13*Sh.RaviSharmaandSh.RakeshJindalresignedfromthedirectorshipon04.01.13.**Smt.DeepikaAggarwalresignedfromthemembershipoftheAuditCommitteeon28.02.13.
12 Annual Report 2012-2013
The minutes of the meetings of the audit committee areplacedbeforetheBoardandtheCompanyisfollowingtherecommendations of the audit committee.3. COMPENSATION COMMITTEECompanyhasconstitutedacompensationcommitteeinthechairmanship ofMr. B.D.Agarwal and two IndependentDirectors namely Sh. Neeraj Chhabra and Smt. DeepikaAggarwalarethemembersofthiscommittee.TheSecretaryofthecommitteeisMr.RavinderKumarGupta.4. INVESTOR GRIEVANCE COMMITTEETheBoardofDirectorsoftheCompanyhasconstitutedtheInvestors’GrievancesCommitteeofDirectors.Thecommitteespecificallyredressesthegrievancesoftheshareholders.Theterms of reference of shareholders Grievance Committeeinter-aliaconsidersthefollowingmatters:-* ApprovesissueofDuplicateShareCertificates.* Looksintotheredressalofshareholderscomplaintslike
non- receiptofBalanceSheet,DividendWarrantsandcomplaints pertaining to transfer of shares, etc.
* The committee also considers the request of theshareholders for splitting/consolidation/renewal ofcertificate as may be referred by the share transfercommittee.
The InvestorGrievanceCommitteepresently comprises ofthefollowingMembers:-
1. Sh.NeerajChhabra Chairman2. Smt.DeepikaAggarwal Member3. Sh.B.D.Agarwal Member
5. DATE, VENUE & TIME FOR THE LAST THREE ANNUAL GENERAL MEETING
Date Venue Time No. of Special
Resolution 28.09.2010 In the local area of
Regd.Officeofthecompany at Railway
Road,Siwani–127046(Haryana)
10.00A.M. None28.02.2012 10.00A.M. Three29.09.2012 10.00A.M. Five
6. DISCLOSURETherearenomateriallysignificantrelatedpartytransactionsi.e. transactions material in nature with its promoters, the directorsorthemanagement,theirsubsidiariesorrelativesetc., except with one group company wherein normalbusinesstransactionsaremadeandthatarenotprejudicialto the interest of the company.7. MEANS OF COMMUNICATION
The company’s quarterly results, in the format prescribedbytheStockExchanges,areapprovedandtakenonrecordby the Board within the prescribed time frame and sentimmediatelytoallStockExchangesonwhichtheCompany’sshares are listed. The quarterly unaudited financial results are generallypublishedintheEnglishandVernacularnewspapers.TheseresultsarepublishedinEconomicTimesinalleditionsandintwonewspapersofregionallanguageandalsosubmittedto Stock Exchanges to enable them to put them on theirwebsites.8. GENERAL SHAREHOLDER INFORMATIONTheseinformation’sarefurnishedhereinbelow:-(I) As indicated in the notice to our shareholders, the
AnnualGeneralMeetingoftheCompanywillbeheldon27thSeptember,2013inthelocalareaofRegd.OfficeoftheCompanyat10.00a.m.
(II) ThefinancialyearoftheCompanyis1stApril2012to31stMarch2013.
(III)DateofBookClosurefrom14thSep.2013to24thSep.2013 (both days inclusive) for the purpose of AnnualBookClosure.
(IV)ThecompanypursuanttoRegulation7ofSecuritiesand Exchange Board of India (Delisting of EquityShares) Regulation, 2009 (‘Delisting Regulations”)on voluntarily basis does applied for delisting ofits equity shares from following regional stockexchangeswhere thesecuritiesof thecompanywerelisted,namely:
TheDelhiStockExchangeAssociationLtd.,Delhi JaipurStockExchangeLtd.,Jaipur TheStockExchange,Ahmedabad CochinStockExchangeLtd.,Cochin However, the shares of the company continue to be
listedonBombayStockExchange,Bombay. As per Delisting Regulation, Company’s Securities
can be delisted from Regional Stock Exchanges ifthe shares of the company continue to be listed onBombayStockExchange(BSE).ThebenefitsaccruingtotheinvestorsbykeepingtheequityshareslistedontheseStockExchangesdonotcommensuratewiththecostincurredbythecompanyforthecontinuedlistingon these Stock Exchanges. The shareholders in theregionoftheseStockExchangeswillnotsufferduetodelistingasBombayStockExchangehasnationwidetradingterminals.
13Annual Report 2012-2013
(V) ListingfeesforthealltheStockExchangeshavebeenpaid.(VI)In respect of transfer of physical shares, shareholders
areadvisedtocontact theShareTransferAgentof theCompany.
(VII)Sharesreceivedforphysicaltransferaregenerallyregisteredwithinaperiodof15daysfromthedateofreceipt.
(VIII) As on March 31, 2013, the Distribution of ourshareholdingwasasfollowing:-
S. No. No.ofEquityShares held
Share holders Nos.
No. of Shares
% of Share holding
1 Upto-5000 42721 27663038 20.1272 5001-10000 896 6713832 4.8853 10001-20000 458 6626586 4.8214 20001-30000 161 4016053 2.9225 30001-40000 81 2874500 2.0916 40001-50000 55 2549430 1.8557 50001-100000 107 7659502 5.5738 100001 & above 95 79336659 57.725 TOTAL 44574 137439600 100
Shareholdingpatternason31stMarch2013
Category Nos. of shares held
% to Total
Promoters 34214781 24.89FinancialInstitutions/NationalizedBanks&MutualFund
881901 0.64
Non-ResidentIndividuals/OCBs/Fll’s/ForeignNationals
8539327 6.21
BodiesCorporate 27376727 19.93Resident Individuals 66426864 48.33TOTAL 137439600 100Shareholdingofpersonshavingmorethan1%ofShares
S. No.
Nameofshareholder No. of shares held
% of shares
1 BajrangDassAggarwal 23903432 17.392 BimlaDeviJindal 4274832 3.113 MeghRaj 6036517 4.394 ForesightHoldings
PrivateLimited1800000 1.31
5 KCPSugarandIndustrialCorporation
1581721 1.15
6 SushilFinancialServicesPrivateLimited
2013060 1.46
7 VisionMilleniumExportsPrivateLimited
2456687 1.79
8 GoldmanSachsInvestments
6016685 4.38
9 AventisBiofeedsPrivateLimited
2439727 1.77
10 ShreyansCreditandCapitalPrivateLimited
1619839 1.18
11 SunmateTradePrivateLimited
3016488 2.19
12 BabuLalJindal 1430458 1.0413 SureshKumarGupta 1426841 1.03
(viii)Dematerializationofshares Over 98.14% of the listed Equity Shares have been
dematerialized.(ix) DematISINNumbersinNSDL&CDSL:INE706A01022(x) StockMarketRateonBSE(Re.1/-perShare)
Apr.
12
May.
12
Jun.
12
Jul.
12
Aug.
12
Sept.
12
Oct.
12
Nov.
12
Dec.
12
Jan.
13
Feb.
13
Mar.
13
High 76.20 66.70 50.80 62.20 76.55 72.60 61.70 61.80 58.50 49.80 42.05 36.25
Low 55.35 48.60 39.05 38.50 53.25 58.20 52.65 49.75 43.35 39.15 29.05 25.55
Diagrammatical presentation of monthly high low of stock priceatBombayStockExchangeLtd.,Mumbai.(xi) Share Transfer System/ Dividend and other related
matters• SHARETRANSFER Share transfer inphysical formareprocessedand
thesharecertificatesaregenerallyreturnedto thetransferees within a period of 15 days from thedate of receipt of transfer provided the transfer documents lodged with the company are complete in all respects.
• NOMINATIONFACILITYFORSHAREHOLDING As per the provisions of the Companies Act,
1956, facility for making nomination is availablefor members in respect of shares held by them.Members holding shares in physical form mayobtain nomination form on request. Membersholding shares in dematerialized form should contact their Depository participants (DP) in thisregard.
14 Annual Report 2012-2013
• PERMANENTACCOUNTNUMBER(PAN) Members who hold shares in physical form are
advised that SEBI has made it mandatory that acopyofthePANcardofthetransferee(s),members,surviving joint holders/legal heirs be furnishedto the company while obtaining the services oftransfer, transportation, transmission and issue of duplicate shares.
• PAYMENT OF DIVIDEND THROUGHELECTRONICCLEARINGSERVICE(NECS)
The company provides the facility for remittanceof dividend to the members through NECS.To facilitate dividend payment through NECS.MemberswhoholdsharesinDematmodeshouldinform their Depository Participants and such of the members holding shares in physical form shouldinform company of the core banking accountnumberallotted to themby theirbankers. Incasewhere the core banking account number is notintimatedtothecompany/DepositoryParticipant,the company will issue dividend warrants to the members.
• PENDINGINVESTOR’SGRIEVANCES Any member/investor whose grievance has not
been resolved satisfactorily, may kindly writeto the Company Secretary on [email protected] or in physical form at the administrationofficeofthecompanywithacopyofthe earlier correspondence.
• RECONCILIATIONOFSHARECAPITALAUDIT AsrequiredbytheSecuritiesandExchangeBoard
of India (SEBI) quarterly audit of the company’ssharecapitalisbeingcarriedoutbyanindependentexternalpracticingcompanysecretarywithaviewto reconcile the total share capital admitted with National Securities Depository Limited (NSDL)and Central Depository Services (India) Limited(CSDL)andheldinphysicalform,withtheissuedand listed capital. The Auditors certificate inregardtothesameissubmittedtoBSELimitedisalso placed before the Shareholder’s/Investor’sGrievanceCommitteeandtheBoardofDirectors.
(xii)Addressforcorrespondence:-Admn.Office Regd.OfficeB-86/87,UdyogVihar RailwayRoad,SiwaniRIICOIndustrialArea, 127046(Haryana)SriGanganagar-335002E-mail: [email protected] [email protected]:www.vikaswspltd.in
(xii)Registrar&TransferAgent LINKINTIMEINDIAPRIVATELIMITED
44CommunityCentre, 2ndFloor,NarainaIndustrialArea, Phase-I,NearPVR,Naraina NewDelhi-110028 Unit:-VikasWSPLtd.9. Certification under Clause 49 (I) (D) of the Listing
AgreementAlltheBoardMembersandSeniorManagementpersonnelhave affirmed compliance with the Codes of Conduct forVikasWSPLimitedforthefinancialyearended31stMarch,2013. ForVIKASWSPLIMITED Sd/-Date:14.08.2013 (B.D.Agarwal)Place:SriGanganagar ManagingDirector
10. Statement ofDisclosure byAudit Committee to theShareholders
To,TheShareholdersofVikasWSPLimitedIn terms ofClause 49 of the ListingAgreement regardingCorporate Governance, we the members of the AuditCommitteediscloseinrespectoftheFinancialYear2012-13that:1) theAuditCommitteehasreviewedtheAuditedFinancial
StatementoftheCompanyandhelddiscussiononthequality of the accounting principles as applied andsignificant judgments affecting Company’s financialstatements;
2) theAuditCommitteehasdiscussedthequalityofthoseprinciples as applied and judgments referred on (1)aboveunderthecircumstances;
3) theChairmanoftheAuditCommitteeanditsmembersafter initial discussion amongst themselves, invited the Chairman and Executive Directors of the Companyalong with the Internal Auditor to discuss the various issues related to Audited Financial Statements of theCompany. The Members of the Audit Committeediscussedwith theManagementon thevarious issuespertainingtotheAuditedFinancialStatements;
4) the Audit Committee, in reliance on the review anddiscussion conducted with Management in (1), (2)and (3) above, believed that the Company’s financialstatements are fairly presented in conformity with the generally accepted accounting principles in all material respects.
ForandonBehalfofAuditCommitteeofForVIKASWSPLIMITED
Sd/-Date:14.08.2013 RamAwtarMittalPlace:SriGanganagar Chairman,AuditCommitte
15Annual Report 2012-2013
11. CERTIFICATE ON CORPORATE GOVERNANCEThe certificate of Practicing Company Secretary onComplianceofClause49oftheListingAgreementrelatingtoCorporateGovernanceishereunder:-
TOTHEMEMBERSVIKASWSPLTD.
CERTIFICATE ON CORPORATE GOVERNANCEWehaveexaminedthecomplianceofconditionsofCorporateGovernancebyVikasWSPLimited, for theyearendedonMarch 31, 2013, as stipulated in clause - 49 of the listingagreementofthesaidCompanywiththestockexchanges.The compliance of conditions of corporate governance isthe responsibility of the management. Our examinationwas limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance ofthe conditions of corporate governance. It is neither an audit noranexpressionofopiniononthefinancialstatementsoftheCompany.In our opinion and to the best of our information andaccording to the explanations given to us, we certify thattheCompanyhascompliedwiththeconditionsofcorporategovernance as stipulated in Clause -49 of the abovementionedlistingagreement:-1. The company has held five meetings of the Audit
Committee during the financial year 2012-2013 on20.05.2011,20.08.2011,18.11.2011,16.01.2012,12.02.2013&28.02.2013.
2. The Shareholders’ Grievances Committee wasfunctioningaccordingtotheListingAgreement.
Aspertherecordsmaintainedbythecompany,noInvestor’sGrievanceswerependingforaperiodexceedingonemonthason31.03.2013.We further state that such compliance is neither an assurance astothefutureviabilityoftheCompanynortheefficiencyoreffectiveness with which the management has conducted the affairsoftheCompany.
ForNiteshKumarSinhaCompanySecretaries
Sd/-PerNiteshKumarSinha
Place : New Delhi PartnerDate : 24.08.2013 MembershipNo.7648
12. NON MANDATORY RECOMMENDATIONS AS PER CLAUSE 49 OF THE LISTING AGREEMENT
Chairman : TheCompanyhasanExecutiveChairman&ManagingDirector
Remuneration Committee
: TheBoardhasaCompensationCommitteecomprising majority of the independent director
ShareholdersRight
: The Company ensures that any newdevelopments related to its business;receive wide coverage in the press through regular press releases and electronic distribution &/ or sent to Bombay StockExchangeasCorporateAnnouncement
PostalBallot : Thebusinesstobetransactedattheensuinggeneralmeetingsdonotrequirepassingofresolutionbypostal ballot.TheCompanywillextendthisfacilityofvotingbypostalballotonmatters,specifiedforpostalballotin theCompaniesAct, 1956,asandwhenrequired
16 Annual Report 2012-2013
MANAGEMENT DISCUSSION & ANALYSISINDUSTRY STRUCTURE & DEVELOPMENT
TheCompanyVIKASWSPwasestablishedin1988.TheCompanyisoneoftheIndia’sforemostguargumpowder(GGP)manufacturer,supplyingtoallsectorsof thefoodindustrywithanextensiverangeofqualityproducts.Besidesfood, theCompanyalsooffersguargumfortechnicalapplicationssuchaspetfood,oildrillingandfracturing,textileprinting,papermaking,etc.Perannumproductioncapacityofallgradesguargumpowder is58800MT.TheCompany iscommitted toprovide its customers overall services andvalues that is the best. It has contributed significantly to our national output,employmentandexports.
FUTUREOUTLOOK,OPPORTUNITIESANDTHREATS
Your company – world’s leading provider of guar gum polymers, knows how much traceability means to food andpharmaceuticalproducers. It offers a complete and trustworthy rangeof guarpolymersworld-wide and can fullyprovetheirorigins.Traceabilityservesbothregulatoryandconsumerrequirements.Thecompanyisknownforprovenproductionprocesses,advancedqualitysystemsandreliablesupplies.Thesearethereasonsthatyourcompanyhasabductedmostoftheexpandingmarketofguarpolymers.Company’sR&Dhasagimlet-eyeontheapplicationproblemsandtheirsolutionswhichgoesalongwayinexpandingitsbusinessinallsegmentsintheyearsahead.Currently,yourcompanyisthesoleproducerof“CertifiedOrganicguarpolymers”andthesameisanopportunityforthecompanytospreaditswingsinmarketswherenoneexistedbefore.Threats–GuarisaxerophytesplantandtherainpatternofthemonsoonsintheIndianaridzone–mainlyWesterndesertofRajasthanprovidesidealgrowingconditions.Theneedforjusttherightamountofrainattherighttimeleaves the guar crop heavily dependent on the annual rainfall pattern and causes occasional wide swings in guar supply and prices.Withtheemergenceofirrigatedguarseeds,dependencyofguarcroponmonsoonhasbeenminimized.Nowitscropis irrigated with canal water at the right time that increased its per hectare yield greatly.
COMPANY’S PERFORMANCE
Duringthecurrentyearunderreviewyourcompanyhasachievedatotal turnoverofRs.290635.52 lakhsascomparedtoRs.106357.26lakhsinthepreviousyearDuringtheyearunderreviewthecompanyhasearnedanetprofitofRs.34453.16lakhsascomparedtonetprofitofRs.15467.56millionsduringpreviousyear.
FOREIGN EXCHANGE EARNINGS
YourCompanyremainscommittedtoenlargingForeignExchangeEarnings.EarningsfromexportscreategrowingvaluefortheIndianEconomyandalsoservetobenchmarkthecompetitivenessofyourCompany’soperationswithglobalstandards.
TheVIKASWSP’scontributiontoForeignExchangeEarningwasaccountedfortheagroexports,ameasureofyourcompany’sgrowingcontributiontotheruraleconomy.
BUSINESS SEGMENT
AstheCompanyisdealingonlyinGuarderivativesandGuarPolymers,therefore,segmentwisedetail isnotrequiredtoincorporate.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
TheCompanyishavingadequateinternalcontrolsystemsandprocedureswhichcommensuratewiththesizeoftheCompany.AllthedepartmentsoftheCompanyarefollowingtheestablishedrulesandregulationsforinternalcontrolsystems.CompanyestablishedaInternalControlAuditDepartmentwhichensurethattheinternalcontrolsystemsareproperlyfollowedbyalltheconcerneddepartmentsoftheCompany.
HUMAN RESOURCES/INDUSTRIAL RELATIONS
BeyondBalanceSheet,Company’ssinglybiggestassetisitsHumanResource.TheCompanyisoffirmbeliefthatthehumanresourcesarethedrivingforcetowardsprogressandsuccess.TheCompanycontinueditspolicyofattractingandrecruitingbestavailabletalentssothatitcanfacebusinesschallengesahead.TheCompanyalsooffersattractivecompensationpackagestoretainandmotivateitsprofessionalssothattheycaninfusetheirbestefforts.Theindustrialrelationcontinuestobecordialduring the year.
Thoughthestatementandviewsexpressedintheabovesaidreportareonthebasisofcertainassumptionsandexpectationsoffutureevents,butactualresultsmaydifferfromwhateverisstatedinthereport.
17Annual Report 2012-2013
INDEPENDENT AUDITORS’ REPORT TotheMembersofVikasWSPLimited
ReportontheFinancialStatements
WehaveauditedtheaccompanyingfinancialstatementsofVIKASWSP LIMITED (“the Company”), which comprisetheBalanceSheetasat31stMarch,2013,theStatementofProfit andLoss and theCashFlowStatement for the yearthen ended, and a summary of the significant accountingpoliciesandotherexplanatoryinformation.
Management’sResponsibilityfortheFinancialStatements
Management is responsible for the preparation of thesefinancial statements that give a true and fair view of thefinancial position, financial performance and cash flowsof the Company in accordance with the AccountingStandardsreferred to insub-section (3C)ofsection211 ofthe Companies Act, 1956 (“the Act”). This responsibilityincludes the design, implementation and maintenance of internal control relevant to the preparation and presentation ofthefinancialstatementsthatgiveatrueandfairviewandare free from material misstatements, whether due to fraud or error.
Auditors’Responsibility
Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedouraudit inaccordancewith the Standards onAuditing issued by theInstituteofCharteredAccountantsofIndia.ThoseStandardsrequire thatwe complywith the ethical requirements andplanandperformtheaudit toobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatements.
An audit involves performing procedures to obtain auditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment, including the assessment of the risks of material misstatement of the financial statements, whether dueto fraud or error. In making those risk assessments, the auditorconsidersinternalcontrolrelevanttotheCompany’spreparationandfairpresentationofthefinancialstatementsin 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
Management,aswellasevaluatingtheoverallpresentationofthefinancialstatements.
We believe that the audit evidence we have obtained issufficient andappropriate toprovideabasis forourauditopinion.
Opinion
Inouropinionandtothebestofourinformationandaccordingto the explanations given to us, the financial statementsgive the informationrequiredbytheAct in themannersorequiredandgiveatrueandfairviewinconformitywiththeaccounting principles generally accepted in India:
(a) inthecaseoftheBalanceSheet,ofthestateofaffairsoftheCompanyasat31stMarch,2013;
(b) in the case of the Statement of Profit andLoss, of theprofitfortheyearendedonthatdate;and
(c) inthecaseoftheCashFlowStatement,ofthecashflowsfor the year ended on that date.
ReportonOtherLegalandRegulatoryRequirements
1. As required by the Companies (Auditor’s Report)Order, 2003(“the Order”) as amended, issued by theCentral Government of India in terms of sub-section(4A)ofsection227oftheAct,wegiveintheAnnexureastatementonthemattersspecifiedinparagraphs4and5oftheOrder.
2. AsrequiredbySection227(3)oftheAct,wereportthat:
(a) We have obtained all the information andexplanationswhich to the best of our knowledgeandbeliefwerenecessary for thepurposesofouraudit;
(b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappearsfromourexaminationofthosebooks;
(c) TheBalanceSheet,theStatementofProfitandLoss,and the Cash Flow Statement dealt with by thisReportareinagreementwiththebooksofaccount;
(d) In our opinion, the Balance Sheet, the Statementof Profit and Loss and the Cash Flow StatementcomplywiththeAccountingStandardsreferredtoinsub-section(3C)ofsection211oftheAct.
(e) Onthebasisofthewrittenrepresentationsreceivedfrom the directors as on 31st March, 2013, and
18 Annual Report 2012-2013
taken on record by the Board of Directors, noneof thedirectors is disqualified as on 31stMarch,2013,frombeingappointedasadirectorintermsofclause(g)ofsub-section(1)ofsection274oftheAct.
ForArunK.Agarwal&Associates CharteredAccountants FRN:03917N
VimalKumarJainPlace : Sri Ganganagar PartnerDate : 28.05.2013 MembershipNo.:086657
AnnexuretoIndependentAuditors’ReporttotheMembersofVikasWSPLimited
ReferredtoParagraph1undertheheadingof“ReportonOtherLegalandRegulatoryRequirements”ofourreportof even date
(i) a) The Company has maintained proper recordsshowing full particulars, including quantitativedetailsandsituationoffixedassets.
b) TheCompanyhasasystemofphysicalverificationof fixed assets by which all the fixed assets areverifiedinaphasedmanneroveraperiodofthreeyears. In our opinion, this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.No material discrepancies were noticed on such verificationduringtheyear.
c) Nofixedassetsweredisposedoffduringtheyear.
(ii) a) The inventory has beenphysically verified by themanagement during the year, except goods–in-transit. In our opinion, the frequency of suchverificationisreasonable.
b) The procedures for the physical verification ofinventories followed by the management arereasonableandadequate in relation to the sizeoftheCompanyandthenatureofitsbusiness.
c) The Company is maintaining proper records ofinventory.Thediscrepanciesnoticedonverificationbetweenthephysicalstocksandbookrecordswerenotmaterialandhavebeenproperlyadjustedinthebooksofaccount.
(iii)As informed to us, the Company has neither grantednor taken any loans, secured or unsecured, to or from companies or firms or other parties covered in theregistermaintainedundersection301oftheCompaniesAct,1956.
In our opinion and according to the information and explanations given to us, that purchases of certainraw materials are for the Company’s specialisedrequirements and similarly goods sold are for thespecialised requirements of the buyers and suitablealternativesourcesarenotavailabletoobtaincomparablequotations. Internal control system of the company isadequate looking into the size and operations of thecompany except in respect of fixed assets, where no capital budget was placed before the board.
(v) (a) In our opinion and according to the informationand explanations given to us, the contracts orarrangements, referred to in section 301 of theCompanies Act, 1956 have been entered in theregister required to be maintained under thatsection.
(b) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetransactionsmadeinpursuance of contracts and arrangements referred toin(a)aboveandexceedingthevalueofRs5lakhare for purchases of certain items of inventories which are of specialised requirements of thecompany and similarly sale of certain goods are for thespecialisedrequirementsofthebuyersandforwhichsuitablealternativesourcesarenotavailabletoobtainthecomparablequotations.However,onthebasisofinformationandexplanationsprovided,thesameappearreasonable.
(vi)The company has not accepted anydeposits from thepublic.
(vii)The Company has an internal audit system. In ouropinion, the scope of work of internal audit and compliance needs be strengthened to make itcommensuratewiththesizeandnatureofitsbusiness.
(viii)We have broadly reviewed the books of accountmaintained by the company in pursuant to therules prescribed by the Central Government for themaintenanceof cost recordsunder clause (d)of sub-section (1) of section 209 of the Act, and are of theopinionthat,primafacie,theprescribedaccountsandrecordshavebeenmadeandmaintained.Wehavenot,however,madeadetailedexaminationoftherecordswith a view to determine whether they are accurate or complete.
(ix) (a) According to the information and explanationsgiventousandonthebasisofourexaminationof
19Annual Report 2012-2013
the records of the Company, amounts deducted/accrued in the books of account in respect ofundisputed statutory dues including, Provident Fund,Salestax,Incometax,Servicetax,Exciseduty,Wealthtax,Customsduty,InvestorEducationandProtectionFund,Cessandothermaterialstatutorydues to the extent applicable, have generallybeen deposited regularly during the year by theCompany with the appropriate authorities except there have been slight delays in few cases in respect of tax deducted at source.
According to the information and explanationsgiven to us, no undisputed amounts payable inrespect of Provident Fund, Income-tax, Sales tax,Service tax, Customs duty, Wealth tax, Investorand Education Fund, Excise duty, Cess and othermaterial statutory due were in arrears as at 31March 2013 for aperiodofmore than sixmonthsfromthedatetheybecamepayable.
(b) According to the information and explanationsgiventous, therearenoduesofSalestax,Wealthtax, Service tax, Excise duty, Customs duty andCess, which have not been deposited with theappropriate authorities on account of any dispute. Asinformedtous,duesrelatingtoIncometaxandservicetaxwhichhasbeendepositedunderprotestis as follows:
Nameof the statute
Nature of the dues
Amount(Rs.)
Period to whichtheamountrelates
Forumwheredisputeispending
Income-tax Act,
1961
Incometax 3,072,093 1995-96 High Court of Punjaband
HaryanaService tax Act
Service Tax 4,90,00,499 2006-07 to 2010-11
Custome,Exciseand service taxAppellate
Tribunal
(x) The Company does not have any accumulatedlosses at the end of the financial year and has notincurredcash losses in thefinancialyearandin theimmediatelyprecedingfinancialyear.
(xi) In our opinion and according to the informationand explanations given to us, the Company hasnotdefaultedinrepaymentofduestoanyfinancialinstitutionorbank.TheCompanydidnothaveanyoutstandingdebenturesduringtheyear.
(xii) Accordingtotheinformationandexplanationsgiventous, theCompanyhasnot granted any loans andadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.
(xiii) Accordingtotheinformationandexplanationsgivento us, the Company is not a chit fund or a nidhi/mutualbenefitfund/society.
(xiv) Accordingtotheinformationandexplanationsgiventous,theCompanyisnotdealingortradinginshares,securities,debenturesandotherinvestments.
(xv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermsandconditionsoftheguaranteesgivenbytheCompany,forloanstakenby others from banks during the year, are, primafacie,notprejudicialtotheinterestoftheCompany.
(xvi) Accordingtotheinformationandexplanationsgiventous, the termloansavailedby thecompany,wereprima facie, applied for the purpose for which the loanswereobtained.
(xvii) Accordingtotheinformationandexplanationsgivento us and on an overall examination of financialstatement of the Company, funds raised on short-termbasishave,primafacie,notbeenusedforlong-term investments.
(xviii) The Company has not made any preferentialallotment of shares to companies or firmor partiescoveredintheregistermaintainedunderSection301oftheCompaniesAct,1956.
(xix) The Company did not have any outstandingdebenturesduringtheyear.
(xx) TheCompanyhasnotraisedanymoneybywayofpublicissuesduringtheyear.
(xxi) Basedontheinformationandexplanationsgivenandauditprocedureperformedbyus,nofraudonorbythecompanyhasbeennoticedorreportedduringtheyear.
ForArunK.Agarwal&Associates CharteredAccountants FRN:03917N
VimalKumarJainPlace: SriGanganagar PartnerDate : 28.05.2013 MembershipNo.:086657
20 Annual Report 2012-2013
(AllamountsareinIndianRupeesLakhs,exceptifotherwisestated) Notes As at
31 March 2013As at
31 March 2012EquityandliabilitiesShareholders' funds Sharecapital 2 1,374.40 1,374.40Reserves and surplus 3 138,348.02 105,502.84Non-current liabilities Long-termborrowing 4 400.00 2,000.00Deferredtaxliability(net) 5 3,457.18 2,981.30Long-termprovisions 6 74.27 68.64Current liabilities Short-termborrowings 7 14,587.78 7,317.90Tradepayables 8 26,749.27 14,535.76Othercurrentliabilities 9 19,703.48 15,041.80Short-termprovisions 10 9,846.27 2,167.74Total 214,540.67 150,990.38 Assets Non-current assets Fixedassets
Tangibleassets 11A 88,592.53 90,861.84Intangibleassets 11B 1.47 -
Capitalworkinprogress 1,273.53 175.42 89,867.53 91,037.26
Longtermloansandadvances 12 621.02 511.80Othernon-currentassets 13 111.14 104.17CurrentassetsInventories 14 37,544.52 26,596.35Tradereceivables 15 21,637.19 12,159.06Shorttermloansandadvances 16 61,514.95 16,404.58Cashandbankbalances 17 3,244.32 4,177.16
123,940.98 59,337.15 Total 214,540.67 150,990.38
VIKASWSPLIMITEDBalance Sheet as at 31 March, 2013
Significantaccountingpolicies 1 Theaccompanyingnotesareanintegralpartofthefinancialstatements. 2-37 As per our report attached ForArunKAgarwal&Associates ForandonbehalfoftheBoardofDirectorsofVikasWSPLimited CharteredAccountants FirmRegistrationNo.003917N
VimalKumarJain B.D.Agarwal BimlaDeviJindal RavinderK.GuptaPartner ManagingDirector Director CompanySecretaryMembershipno:086657
Place:SriGanganagar Place:SriGanganagar Place:SriGanganagar Place:SriGanganagarDate:28.05.2013 Date:28.05.2013 Date:28.05.2013 Date:28.05.2013
21Annual Report 2012-2013
VIKASWSPLIMITEDStatementofprofitandlossfortheyearended31March,2013
(AllamountsareinIndianRupeesLakhs,exceptifotherwisestated) Notes For the year
ended 31 March 2013
For the year ended
31 March 2012
Income
Revenue from operation 18 290,635.52 106,357.26
Other income 19 565.34 202.99
Total(I) 291,200.86 106,560.25
EXPENDITURE
Costofmaterialsconsumed 20 220,765.93 61,547.48
(Increase)/decreaseinstockoffinishedgoods 21 (7,718.89) (2,985.73)
Purchaseofstock-in-trade 6,043.87 10,014.74
Employeebenefitsexpenses 22 1,169.32 796.94
Financecost 23 2,611.21 2,587.68
Depreciationandamortizationexpenses 4,543.72 4,483.81
Otherexpenses 24 12,069.57 7,250.65
Total(II) 239,484.73 83,695.57
Profit/(loss)beforetax 51,716.13 22,864.68
Taxexpenses
-currenttax 16,788.12 6,910.77
-wealthtax 0.30 0.27
-taxprovisionnolongerrequired (1.33) -
-deferredtax 475.88 486.08
TotalTaxexpenses 17,262.97 7,397.12
Profit/(loss)fortheyear 34,453.16 15,467.56
Earningspershare(basicanddiluted)-Rs. 25 25.07 11.25
Significantaccountingpolicies 1Theaccompanyingnotesareanintegralpartofthefinancialstatements. 2-37 As per our report attached ForArunKAgarwal&Associates ForandonbehalfoftheBoardofDirectorsofVikasWSPLimited CharteredAccountants FirmRegistrationNo.003917N
VimalKumarJain B.D.Agarwal BimlaDeviJindal RavinderK.GuptaPartner ManagingDirector Director CompanySecretaryMembershipno:086657
Place:SriGanganagar Place:SriGanganagar Place:SriGanganagar Place:SriGanganagarDate:28.05.2013 Date:28.05.2013 Date:28.05.2013 Date:28.05.2013
22 Annual Report 2012-2013
(AllamountsareinIndianRupeesLakhsexceptifotherwisestated)Particulars As at
31 March 2013As at
31March2012CashFlowFromoperatingactivitiesProfitbeforetaxfromoperations 51,716.13 22,864.68Non-cashadjustmenttoreconcileprofitbeforetaxtonetcashflows
Depreciation and amortization 4,543.72 4,483.81Unrealisedforeignexchangeloss/(gain) (53.02) (40.00)
Interestexpenses 2,611.21 1,680.50Interest income (151.45) (105.22)Operatingprofitbeforeworkingcapitalchanges 58,666.59 28,883.77Movementsinworkingcapital
Increase/(decrease)intradepayables 12,213.51 12,971.09Increase/(decrease)inlongtermprovisions 5.64 14.00Increase/(decrease)inshorttermprovisions (110.72) 0.33Increase/(decrease)inothercurrentliabilities 4,691.45 14,267.70Decrease/(increase)intradereceivables (9,425.11) (6,620.91)Decrease/(increase)ininventories (10,948.17) (22,813.49)Decrease/(increase)inothernoncurrentassets (6.97) (6.53)Decrease/(increase)inlongtermloansandadvances (109.22) (317.60)Decrease/(increase)inshorttermloansandadvances (47,447.93) (9,804.33)
Cashgeneratedfrom/(usedin)operations 7,529.07 16,574.03Directtaxespaid(netofrefunds) (6,669.57) (4,170.35)Netcashflowfrom/(usedin)operatingactivities(A) 859.50 12,403.68CashflowsfrominvestingactivitiesPurchaseoffixedassets,CWIPandcapitaladvance (3,373.99) (5,247.50)Redemption/ (investments) in bankdeposits (havingmaturity ofmorethan3month)
(40.33) (525.63)
Interest received 151.45 105.46Netcashflowfrom/(usedin)investingactivities(B) (3,262.87) (5,667.67)CashflowsfromfinancingactivitiesProceedsfromlongtermborrowings - 2,000.00Repaymentoflongtermborrowing (1,600.00) -Proceedsfromshorttermborrowings 8,806.58 5,650.76Repaymentofshorttermborrowing (1,536.70) (7,837.99)Interest paid (2,640.98) (2,003.86)Dividendspaidonequityshares (1,374.40) (1,030.80)Taxonequitydividendpaid (224.29) (57.07)Netcashflowfrom/(usedin)infinancingactivities('C) 1,430.21 (3,278.96)
VIKASWSPLIMITEDCashflowstatementfortheyearended31March,2013
23Annual Report 2012-2013
Netincrease/(decrease)incashandcashequivalents(A+B+C) (973.16) 3,457.05Cashandcashequivalentsatthebeginningoftheyear 3,616.06 159.01Cashandcashequivalentsattheendoftheyear 2,642.90 3,616.06ComponentsofcashandcashequivalentsCashonhand 1.28 10.64Withbanksoncurrentaccount
-ondepositaccount 1,478.59 2,504.28-unpaiddividendaccounts 89.60 90.85
Withbanksfixeddeposit 1,073.43 1,010.29Totalcashandcashequivalents 2,642.90 3,616.06
As per our report attached ForArunKAgarwal&Associates ForandonbehalfoftheBoardofDirectorsofVikasWSPLimited CharteredAccountants FirmRegistrationNo.003917N
VimalKumarJain B.D.Agarwal BimlaDeviJindal RavinderK.GuptaPartner ManagingDirector Director CompanySecretaryMembershipno:086657
Place:SriGanganagar Place:SriGanganagar Place:SriGanganagar Place:SriGanganagarDate:28.05.2013 Date:28.05.2013 Date:28.05.2013 Date:28.05.2013
24 Annual Report 2012-2013
1. SIGNIFICANT ACCOUNTING POLICIES1.1. Basisofpreparation ThefinancialstatementsarepreparedunderhistoricalcostconventiononaccrualbasisinaccordancewithGenerally
AcceptedAccountingPrinciples (GAAP) in India, applying theaccountingstandardsnotifiedunder theCompanies(AccountingStandards)Rules,2006,(asamended)andotherrelevantprovisionsoftheCompaniesAct,1956.
Allassetsandliabilitieshavebeenclassifiedascurrentornon-currentasperthecompany’snormaloperatingcycleandothercriteriasetoutinRevisedScheduleVItothecompaniesAct,1956.Companyhasdetermineditsoperatingcycleastwelvemonthsforthepurposeofcurrent/non-currentclassificationofassetsandliabilities.
1.2. Useofestimates Thepreparationoffinancialstatementsrequiresestimatesandassumptionswhichaffectthereportedamountofassets,
liabilities,revenuesandexpensesofthereportingperiod.TheDifferencebetweentheactualresultsandestimatesarerecognizedintheperiodinwhichtheresultsareknown/materialized.
1.3. Fixed Assets Fixed assets are stated at acquisition cost less accumulated depreciation and impairment, if any. Cost includes
inwardfreight,duties,taxesandincidentalexpensesrelatedtoacquisitionandinstallationincurreduptothedateofcommissioning of the assets.
1.4. Depreciation Depreciation isprovidedunder thestraight-linemethodbasedon theestimateduseful livesof theassetswhichare
equaltotheratesspecifiedinScheduleXIVtotheCompaniesAct,1956exceptincaseofplantandmachinerywheredepreciationisprovidedattherateof7.69%.
AssetscostingbelowRs.5,000aredepreciatedfullyintheyearofpurchase.1.5. Inventories Inventoriesarevaluedasfollows: Rawmaterials,storesandsparesandpackingmaterials Lowerofcostandnetrealisablevalue.However,materialsandotheritemsheldforuseintheproductionofinventories
arenotwrittendownbelowcostifthefinishedproductsinwhichtheywillbeincorporatedareexpectedtobesoldatorabovecost.Costisdeterminedonaweightedaveragebasis.
Workinprogressandfinishedgoods Lowerofcostandnetrealisablevalue.Costincludesdirectmaterialsandlabourandaproportionofmanufacturing
overheads. Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lessestimatedcostsofcompletion
to make the sale.1.6. Revenue recognition Revenue is recognised to theextent that it isprobable that theeconomicbenefitswillflowto theCompanyandthe
revenuecanbereliablymeasured.1.7. Sale of goods Revenuefromsaleofgoodsisrecognisedwhenthesignificantrisksandrewardsofownershipofthegoodsaretransferred
tothecustomer.Incaseofexportsalesthiscoincideswithshipmentofgoods. Revenue in case of sale of domestic products is recognised at the point of despatch which coincides with the transfer of
risks and rewards of ownership.
VIKASWSPLIMITEDNotestofinancialsstatementsfortheyearendedon31March2013
(AllamountareinIndianRupeesLakhs,exceptifotherwisestated)
25Annual Report 2012-2013
1.8. Foreign exchange transactions Foreignexchangetransactionsarerecordedattheexchangeratesprevailingatthedateoftransaction.Foreigncurrency
assetsandliabilitiesremainingunsettledattheBalanceSheetdatearetranslatedattheratesofexchangeprevailingonthatdate.Gains/lossesarisingonaccountofrealisation/settlementofforeignexchangetransactionsandontranslationofforeigncurrencyassetsandliabilitiesarerecognisedinthestatementofprofitandloss.
1.9. Employeebenefits Short-term employee benefits All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employeebenefits.Benefitssuchassalaries,wages,andbonusetc.arerecognisedinthestatementofprofitandlossinthe period in which the employee renders the related service.
Defined contribution plans Theemployee’sprovident fundscheme isadefinedcontributionplan.TheCompany’s contributionpaid/payable
undertheschemeisrecognisedasanexpenseinthestatementofprofitandlossduringtheperiodinwhichtheemployeerenders the related service.
Defined benefit plans TheCompany’sgratuityplanisadefinedbenefitplan.Thepresentvalueoftheobligationundersuchdefinedbenefit
plan isdeterminedbasedonanactuarialvaluationcarriedoutbyan independentactuaryusing theProjectedUnitCreditMethod,whichrecognizeseachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.Theobligationismeasuredatthepresentvalueoftheestimatedfuturecashflows.Thediscountrateusedfordeterminingthepresentvalueoftheobligationunderdefinedbenefitplans,isbasedonthemarketyieldsonGovernmentsecuritiesasattheBalanceSheetdate.Actuarialgainsandlossesarerecognisedimmediatelyinthestatementofprofitandloss.
1.10. Borrowingcosts Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionsofqualifyingassetsiscapitalisedas
partofassets.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.1.11. SegmentReporting Segmentaccountingpoliciesareinlinewiththeaccountingpoliciesofthecompany.Inaddition,thefollowingspecific
accountingpolicieshavebeenfollowedforsegmentreporting:• Segmentrevenueincludessalesandotherincomedirectlyidentifiablewith/allocabletothesegment.• Expenses that aredirectly identifiablewith/allocable to segmentsare considered fordetermining the segment
result. Expenses which relate to the company as a whole and not allocable to segments are included under“Unallocableexpenditure”.
• Incomewhichrelatestothecompanyasawholeandnotallocabletosegmentisincludedin“Unallocableincome”• Segmentassetsandliabilitiesincludethosedirectlyidentifiablewiththerespectivesegments.
1.12. Leases AssetsleasedbytheCompanyinitscapacityaslessee,wheretheCompanyhassubstantiallyalltherisksandrewards
ofownershipareclassifiedasfinancelease.Suchleasearecapitalisedattheinceptionoftheleaseatlowerofthefairvalueorthepresentvalueoftheminimumleasepaymentsandaliabilityiscreatedforanequivalentamount.Eachleaserentalpaidisallocatedbetweentheliabilityandtheinterestcostsoastoobtainaconstantperiodicrateofinterestontheoutstandingliabilityforeachyear.
Leasearrangementswheretherisksandrewardsincidenttoownershipofanassetsubstantiallyvestwiththelessor,arerecognizedasoperatinglease.Leasepaymentsunderoperatingleasesarerecognizedinthestatementofprofitandlossonastraightlinebasis.
26 Annual Report 2012-2013
1.13. Earningspershare Basicearningspersharearecomputedusingtheweightedaveragenumberofequitysharesoutstandingduringtheyear.
Dilutedearningspersharearecomputedusingtheweightedaveragenumberofequityanddilutiveequityequivalentsharesoutstandingduringtheyear,exceptwhereresultswouldbeanti-dilutive.
1.14. Taxation Income tax expense comprises current tax, (that is amountof tax for theperioddetermined in accordancewith the
Incometaxlaws)anddeferredtaxchargeorcredit(reflectingthetaxeffectsoftimingdifferencebetweenaccountingincomeandtaxableincomefortheperiod).
Thedeferredtaxchargeorcreditandthecorrespondingdeferredtaxliabilityand/ordeferredtaxassetsisrecognisedusingthetaxratesthathavebeenenactedorsubstantivelyenactedbytheBalanceSheetdate.Deferredtaxassetsarerecognisedonlytotheextentthatthereisreasonablecertaintythattheassetscanberealisedinfuture.However,wherethereisunabsorbeddepreciationorcarriedforwardlossundertaxationlaws,deferredtaxassetsarerecognisedonlyifthereisvirtualcertaintyofrealisationofsuchassets.Deferredtaxassetsarereviewedasateachbalancesheetdateandarewrittendownorwrittenuptoreflecttheamountthatisreasonably/virtuallycertain(asthecasemaybe)toberealised.
InaccordancewiththeprovisionsofSection115JAAoftheIncome-taxAct,1961,theCompanyisallowedtoavailcreditequaltotheexcessofMinimumAlternateTax(MAT)overnormalincometaxfortheassessmentyearforwhichMATispaid.MATcreditsodeterminedcanbecarriedforwardforset-offfortensucceedingassessmentyearsfromtheyearinwhichsuchcreditbecomesallowable.MATcreditcanbeset-offonlyintheyearinwhichtheCompanyisliabletopaytaxasperthenormalprovisionsoftheIncome-taxAct,1961andsuchtaxisinexcessofMATforthatyear.Accordingly,MATcreditentitlementisrecognisedonlytotheextentthereisconvincingevidencethattheCompanywillpaynormaltaxduringthespecifiedperiod.
1.15. Impairmentofassets ManagementreviewsthecarryingamountofallassetsateachBalanceSheetdateusinginternalandexternalsourcesof
informationtodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexists,therecoverableamount of the assets or its cash generating unit is estimated. Impairment occurs where the carrying value of the assets oritscashgeneratingunitexceedsthepresentvalueoffuturecashflowsexpectedtoarisefromthecontinuinguseofthe asset or its cash generating unit and its eventual disposal. An impairment loss is recognized in the statement of profitandlosswheneverthecarryingamountofanassetor itscashgeneratingunitexceeds itsrecoverableamountandisdeterminedastheexcessofthecarryingamountoverthehigheroftheasset’snetsalespriceorpresentvalueasdeterminedabove.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheassetscarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendeterminednetofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.
1.16. Contingencies Aprovisioniscreatedwhenthereisapresentobligationasaresultofapasteventthatprobablyrequiresanoutflow
ofresourcesandareliableestimatecanbemadeoftheamountoftheobligation.Adisclosureforacontingentliabilityismadewhenthereisapossibleobligationorapresentobligationthatmay,butprobablywillnot,requireanoutflowofresources.Whenthereisapossibleobligationorapresentobligationinrespectofwhichthelikelihoodofoutflowofresources is remote, no provision or disclosure is made.
27Annual Report 2012-2013
2. Sharecapital As at31 March 2013
As at 31 March 2012
SharecapitalAuthorisedcapital287,500,000(previousyear287,500,000)equitysharesofRe.1each 2,875.00 2,875.00
2,875.00 2,875.00Issued,subscribedandpaidupcapital137,439,600(previousyear137,439,600)equitysharesofRe.1eachfullypaidup 1,374.40 1,374.40
1,374.40 1,374.40
2a. Reconciliationofthenumberofshares:EquityShares As at
31 March 2013 As at
31 March 2012Numbers Amount Numbers Amount
Balanceatthebeginningoftheyear 137,439,600 1,374.40 137,439,600 1,374.40Issued during the year - - - -Balanceattheendoftheyear 137,439,600 1,374.40 137,439,600 1,374.402b. Terms/rightsattachedtoequitysharesTheCompanyhasoneclassofequityshareshavingaparvalueofRe.1pershare.Eachholderofequitysharesisentitledtoonevotepershare.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting,exceptincaseofInterimdividend.IntheeventofliquidationoftheCompany,theequityshareholdersareeligibletoreceivetheremainingassetsoftheCompanyafterdistributionofallpreferentialamounts..Thedistributionwillbeinproportiontothenumberofequitysharesheldbythe shareholders.
2c. Detailsofsharesheldbyshareholdersholdingmorethan5%oftheaggregatesharesintheCompany# As at
31 March 2013 As at
31 March 2012Numbers % Holding Numbers %Holding
EquitysharesofRs.1eachfullypaidBDAgarwal 23,903,432 17.39% 9,857,259 7.17%#Aspertherecordsofthecompany,includingitsregisterofmembers
2d. Aggregatenumberand classof sharesallottedas fullypaiduppursuant to contract(s)withoutpaymentbeingreceived incash,Aggregatenumberandclassofsharesallottedas fullypaidupbywayofbonusshares ,andaggregatenumberofsharesandclassofsharesboughtback,duringtheperiodoffiveyearimmediatelyprecedingthereportingdate.
31 March 2013
31 March 2012
31 March 2011
31 March 2010
31 March 2009
31 March 2008
Equity shares allotted as fully paid up pursuant tocontracts for consideration other than cash - - - - - -
Equitysharesallottedasfullypaidbonussharesbycapitalization of securities premium - - - - - -
Equitysharesboughtbackbythecompany - - - - - -
28 Annual Report 2012-2013
3. Reservesandsurplus
As at31 March 2013
As at 31 March 2012
Capitalreserve 101.72 101.72 Securitiespremiumreserve 29,963.22 29,963.22General reserve Balanceasatthebeginningoftheyear 21,680.75 20,132.75Add:transferredfromsurplusinthestatementofprofitandloss 3,446.00 1,548.00Balance as at the end of the year 25,126.75 21,680.75Surplus/(deficit)inthestatementofprofitandlossBalanceasatthebeginningoftheyear 53,757.15 41,434.95Profitfortheyear 34,453.16 15,467.56Less:AppropriationsProposeddividendonequitysharesfortheyear (1,374.40) (1,374.40)DividenddistributiontaxonProposeddividendonequityshares (233.58) (222.96)Transfertogeneralreserve (3,446.00) (1,548.00)Balance as at the end of the year 83,156.33 53,757.15TotalReservesandSurplus 138,348.02 105,502.84
4. Long-termborrowings
Secured loans Termloanfromfinancialinstitution 400.00 2,000.00Total 400.00 2,000.004a.Natureofsecurity,termsofrepaymentanddefaultsmadeforsecuredborrowingsNature of Security
TheCompanyhadobtainedsecuredloanforgeneralcorporatepurposesincludingcapitalexpenditureforexpansionprojectsandaugmentationof long termworkingcapitalofRs.8,000 (sanctionedamount) fromIFCILimitedsecuredbyexclusivechargeandmortgageonallmoveableandimmoveablefixedassetsoftheCompanysituatedatPlotno.E-255to257inRIICOIndustrialAreaandPlotno.F-92inUdyogVihar,SriGanganagar.
Mr.B.D.Agarwal,Mrs.BimlaDeviJindalbeingdirectorandshareholdersofthecompanyandMr.MeghRajJindal,shareholderoftheCompanyhavepledgedtheirshareholdingaggregatingto17,859,018(previousyear17,859,018)equitysharesofRe1each and have also provided their personal guarantees.
AllthepromotersandtheirassociateshavepledgedtheirentireshareholdinginVikasGranariesLimited(Companiesunderthesamemanagement)aggregating12,340,000equitysharesofRs.10each.(previousyear12,340,000equitysharesofRs.10each).
Termsofrepayment
TheloanisrepayableininstallmentsofRs.400lakhsperquarter.5. Deferredtaxliabilities(net)
Deferred tax liability Differenceinwrittendownvalueoftaxbooksandaccountingbooks 3,531.14 2,985.98Deferred tax asset Provisionforgratuityanddoubtfuladvances (73.96) (4.68)Total 3,457.18 2,981.30
29Annual Report 2012-2013
6. Longtermprovisions
As at31 March 2013
As at 31March2012
Provisionforemployeebenefits:
Provisionforgratuity(refertonote33) 74.27 68.64
Total 74.27 68.64
7. Short-termborrowings
Secured:
Frombank
Exportpackingcredit(refertonote(i)below) 8,964.10 4,371.10
Billdiscounting(refertonote(i)below) 5,604.47 1,410.10
Bankoverdraft 19.21 -
Fromothers
Hypothecationofstock(refertonote(ii)below) - 1,536.70
Total 14,587.78 7,317.90
7a. Natureofsecurityandtermsofrepaymentforsecuredborrowings
(i) TheCompanyhasobtainedapacking credit limit and foreigndocumentarybillpurchase/discounting facilityofRs.1,500eachfromPunjabNationalBanksecuredbyparipassuchargeoninventory,assignmentofdebtors,demandbillaccompaniedby invoice andbill of ladingevidencing shipmentofgoodsandmortgageof immoveable assetsof theCompanyatSP-241andB-86/87UdyogVihar,RIICOIndustrialArea,SriGangaNagarandlienonfixeddepositsofRs.1,674.85(previousyear1,571,.38).Duringtheyear,companyhasobtainedanad-hocpackingcreditlimitofRs.850.00fromPunjabNationalBank.
Mr.MeghrajJindal,Mrs.BimlaDeviJindalandMr.B.D.Agarwal,directorsoftheCompanyhavealsoprovidedtheirpersonal guarantees.
TheCompanyhasobtainedadditionalpackingcreditlimitandforeigndocumentarybillpurchase/discountingfacilityofRs.3,000whichisinterchangeablefromBankofIndiasecuredbyparipassuchargeoninventory,assignmentofdebtors,demandbillaccompaniedbyinvoiceandbillofladingevidencingshipmentofgoodsandparipassuchargeoverland,building,plantandmachinerysituatedatSP-241andB-86/87,UdyogVihar,RIICOIndustrialArea,SriGangaNagar.Mr.MeghrajJindal,Mrs.BimlaDeviJindalandMr.B.D.Agarwal,directorsoftheCompanyhavealsoprovidedtheirpersonalguarantees.
TheCompanyhasobtainedadditionalpackingcreditlimitandforeigndocumentarybillpurchase/discountingfacilityofRs.5,000eachfromUnionBankofIndiasecuredbyparipassuchargeoninventory,assignmentofdebtors,demandbillaccompaniedbyinvoiceandbillofladingevidencingshipmentofgoodsandparipassuchargeoverland,building,plantandmachinerysituatedatSP-241andB-86/87,UdyogVihar,RIICOIndustrialArea,SriGangaNagarandagainstmortgageofPlotNo.G-229to238andF-239to248,Industrialarea,BoranadaIIIrdPhase,Jodhpur.Mr.B.D.Agarwal,Mrs.BimlaDeviJindalandMs.KaminiJindaldirectorsoftheCompanyhavealsoprovidedtheirpersonalguarantees.
(ii)TheCompanyhasobtainedfundsbypledgingitsstockwiththirdparty.
30 Annual Report 2012-2013
8. Tradepayables
As at31 March 2013
As at 31March2012
Tradepayables(refertonote31) 26,749.27 14,535.76
Total 26,749.27 14,535.76
9. Other current liabilities
Currentmaturitiesoflong-termborrowings(alsorefertonote4) 1,600.00 1,600.00
Interestaccruedbutnotdueonborrowings 34.36 64.13
Unclaimeddividend[refertonote(a)below] 89.60 90.60
Advances from customers 17,025.79 12,154.57
Salaryandbonuspayable 136.52 84.92
Amount due to promoter - 395.22
StatutoryduesincludingProvidentFundandTaxdeductedatsource 77.10 88.77
Otherpayables 740.11 563.59
19,703.48 15,041.80
(a) There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of theCompaniesAct,1956asattheyearend.
10.Shorttermprovision
Provisionforemployeebenefits:
Provisionforgratuity(refertonote33) 3.71 2.26
3.71 2.26
Other provisions
Provision for Tax (net ofMAT availment of Rs.2,337.56, advance tax of Rs.6,200.00andTDSofRs.16.27)
8,234.28 454.36
Provisionforwealthtax 0.30 0.27
Provisionforproposeddividendonequityshares 1,374.40 1,374.40
Provisionfordividenddistributiontaxonproposeddividendonequityshares 233.58 224.29
Provision for interest on dividend - 112.18
9,842.56 2,165.49
9,846.27 2,167.74
31Annual Report 2012-2013
Note11:Fixedassets
(figureinlacs)
Part
icul
ars
GrossBlock
Depreciation
NetBlock
As
at
1April2012
Add
ition
s du
ring
the
year
Del
etio
ns /
adjustments
As
at
31 M
arch
20
13
As
at
1April2012
For t
he y
ear
Del
etio
ns /
adjustments
As
at
31 M
arch
20
13
As
at
31 M
arch
20
13
As
at
31 M
arch
20
12
A)T
angibleassets
Land
-Freehold*
42,312.89
--
42,
312.
89
--
- -
42,
312.
89
42,312.89
-Leasehold
1,014.85
1,161.00
- 2
,175
.85
--
- -
2,1
75.8
5 1,014.85
Buildings
1,054.50
98.16
- 1
,152
.66
341.19
34.92
- 3
76.1
1 7
76.5
5 713.31
Plantandequipment
69,284.38
841.21
- 7
0,12
5.59
22,577.68
4,486.31
- 2
7,06
3.99
4
3,06
1.60
46,706.70
Furnitu
reandfixtures
7.27
54.03
- 6
1.30
1.04
1.23
- 2
.27
59.
03
6.23
Veh
icle
s142.66
96.33
- 2
38.9
9 68.81
17.26
- 8
6.07
1
52.9
2 73.85
Officeequipments
54.08
23.57
- 7
7.65
20.07
3.89
- 2
3.96
5
3.69
34.01
Total(A)
113
,870
.63
2,2
74.3
0 -
116
,144
.93
23,
008.
79
4,5
43.6
1 -
27,
552.
40
88,
592.
53
90,
861.
84
B)In
tangibleassets
Com
puterSoftwares
-1.58
- 1
.58
-0.11
- 0
.11
1.4
7 -
Total(B)
- 1
.58
- 1
.58
- 0
.11
- 0
.11
1.4
7 -
Total(A+B
) 1
13,8
70.6
3 2
,275
.88
- 1
16,1
46.5
1 2
3,00
8.79
4
,543
.72
- 2
7,55
2.51
8
8,59
4.00
9
0,86
1.84
Prev
ious
yea
r108,625.30
5,245.33
-113,870.63
18,524.98
4,483.81
-23,008.79
90,861.84
90,100.33
*TherearerestrictionsontransferabilityoffreeholdlandhavinganoriginalcostofR
s.27,857.47(p
reviousyearRs.27,857.47)for20yearsfrom
thedate
ofacquisitioni.e.12March2008.ThisfreeholdlandwaspurchasedbytheCom
panyfrom
Governm
entofR
ajasthanunderIndiraGandhiC
analProject
videdocum
entnum
ber17041/90andthesameisregisteredinthenameoftheCom
panythoughthenecessarymutationintherevenuerecordsisp
ending.
Further,therearerestrictionsonfreeholdlandhavinganoriginalcostofR
s.11,407.80(previousyearR
s.11,407.80)for10yearsfromthedateofacquisition
i.e.15March2010.
32 Annual Report 2012-2013
12. Longtermloansandadvances
As at31 March 2013
As at 31March2012
Unsecured,consideredgood(unlessotherwisestated):
Capitaladvances 381.97 368.22
SecurityDeposits 239.05 143.58
Total 621.02 511.80
13. Other non-current assets
Longtermdepositswithbankswithmaturityperiodmorethan12months(refertonote(a)below)
111.14 104.17
Total 111.14 104.17
(a)Heldaslienbybankagainstbankgurantees.
14. Inventories
(At lower of cost or net realisable value)
RawMaterials 23,897.14 20,756.17
Finishedgoods
-instores 7,363.54 3,510.99
-intransit 5,826.83 1,960.49
Consumables,storesandspares 394.77 297.08
Packing materials 62.24 71.62
37,544.52 26,596.35
14a.DetailsofRawMaterial
Guar 11,182.18 11,109.39
GuarSplit 12,683.68 9,546.53
Other 31.28 100.25
Total 23,897.14 20,756.17
14b. Details of Finished Goods
(i)GoodsManufactured
GuarGumPowder-instore 7,363.54 3,510.99
GuarGumPowder-intransit 5,826.83 1,960.49
Total 13,190.37 5,471.47
15. Trade receivables
Unsecured,consideredgoodsunlessotherwisestated
Outstandingforaperiodexceeding6monthsfromthedatetheyaredueforpayment - -
Others 21,637.19 12,159.06
Total 21,637.19 12,159.06
33Annual Report 2012-2013
16. Shorttermloansandadvances As at
31 March 2013As at
31March2012
Unsecuredconsideredgood,unlessotherwisestatedLoansandadvancestorelatedparties-consideredgood - 9,025.73Others loans and advances Advancerecoverableincashorkind(unsecuredconsideredgood) 3,053.70 2,341.44Incometaxrefundreceivable 140.40 140.40VATcreditreceivable 45.53 34.82MATcreditreceivable - 2,337.56Advance to suppliers 56,238.78 2,524.63Receivableforseeddistrubution 2,036.54 -Doubtful loans and advances Advance to suppliers 150.00 150.00Less:Provisionfordoubtful (150.00) (150.00)Total 61,514.95 16,404.5817. Cashandbankbalances
CashandcashequivalentsBalanceswithbanks:In current accounts 1,478.59 2,504.28Unclaimeddividendaccount 89.60 90.85Demanddeposit(lessthan3monthsmaturity)* 1,073.43 1,010.29Cash in hand 1.28 10.64OtherbankbalancesDepositswithoriginalmaturityformorethan3monthsbutlessthan12months*
601.42 561.10
Total 3,244.32 4,177.16*Heldaslienagainstpackingcreditlimitandforeigndocumentarybillpurchase/discountingfacility
For the Year Ended31 March 2013
For the Year Ended31 March 2012
18. Revenuefromoperations
Saleofgoods(gross)-exports 2,29,347.01 88,918.28-domestic 55,794.16 13,613.15
2,85,141.17 1,02,531.43Less:exciseduty 43.27 0.83Saleofgoods(net) 2,85,097.90 1,02,530.60OtheroperatingincomeExportIncentives 5,537.62 3,826.66Total 2,90,635.52 1,06,357.2618a. Details of sales
Guar gum powder 2,27,212.94 88,927.19Guar split 57,928.23 13,604.24
2,85,141.17 1,02,531.43
34 Annual Report 2012-2013
For the Year Ended31 March 2013
For the Year Ended31 March 2012
18b.Detailsofexportsales
DirectExport 2,12,098.66 82,803.88ExportthroughEOU/Others 17,248.35 6,114.41
2,29,347.01 88,918.28
19. Otherincome
Interestonfixeddeposits 151.45 105.22MiscellaneousIncome 413.89 97.77Total 565.34 202.99
20. Costofmaterialconsumed
RawmaterialconsumedOpeningStock 20,756.17 1,056.64Add: Purchases 2,23,575.98 80,955.23
2,44,332.15 82,011.87Less:ClosingStock 23,897.14 20,756.17
CostofRawMaterialConsumed 2,20,435.01 61,255.70Packingmaterialconsumed
OpeningStock 71.62 61.32Add: Purchases 321.54 302.08
393.16 363.40Less:ClosingStock 62.24 71.62
CostofPackingMaterialConsumed 330.92 291.78TotalCostofMaterialsConsumed 2,20,765.93 61,547.4820a.Detailsofrawmaterialconsumed
Guar 72,191.77 34,000.96Guar split 1,44,096.63 25,000.11Other 4,146.61 2,254.63
2,20,435.01 61,255.70
21. (Increase)/decreaseinstock
Opening stock FinishedgoodsofGuarGumPowder-instores 3,510.99 789.98-intransit 1,960.49 1,695.77
Closingstock 5,471.48 2,485.75FinishedgoodsofGuarGumPowder-instores 7,363.54 3,510.99-intransit 5,826.83 1,960.49
13,190.37 5,471.48(Increase)/decreaseinstock (7,718.89) (2,985.73)
35Annual Report 2012-2013
22. Employeebenefitsexpenses
For the Year Ended31 March 2013
For the Year Ended31 March 2012
Salaries,wagesandbonus 1,042.34 707.42Contributiontoprovidentandotherfunds(refertonote33) 41.41 40.06Staffwelfare 85.57 49.46Total 1,169.32 796.94
23. Finance cost
Interest -Bankborrowing 1,603.60 1,631.77-Supplier 924.10 907.19-Others 83.51 48.72
Total 2,611.21 2,587.68
24. Otherexpenses
Storeandsparesconsumed 2,670.53 429.78Power and fuel 3,827.18 2,976.17Leaserent 2.40 2.40BankCharges 70.97 66.74Repair and maintenance
-plantandmachinery 100.93 83.28-building 10.21 17.48-others 38.77 26.29
Insurance 244.43 121.65Ratesandtaxes 32.74 13.74Othermanufacturingexpenses 201.03 280.83Travellingexpenses 180.35 101.66Legalandprofessional 142.84 170.66Laboratory&testingexpenses 72.19 126.67Foreignexchangeloss 1,320.68 360.82Port handling charges 350.60 325.82Freight 2,288.27 1,885.13Miscellaneous 515.45 261.54Total 12,069.57 7,250.65Legalandprofessionalexpensesincludepaymenttoauditor
Asauditor:*Audit fee 60.00 100.00Limitedreview 18.00 25.00*exclusive of service tax
25. Earningpershare(EPS)
Profitattributabletoequityshareholders’(forbasicanddilutedearning) 34,453.16 15,467.56Weightedaveragenumberofequitysharesforbasicanddilutedearningspershare(facevalueofRe.1each(previousyearRe.1))
13,74,39,600 13,74,39,600
Basicanddiluted(Rs.) 25.07 11.25
36 Annual Report 2012-2013
26. ValueofimportscalculatedonCIFbasis
For the Year Ended31 March 2013
FortheYearEnded31March2012
Chemicals 2,413.27 236.92Plant and machinery - 4,383.53
2,413.27 4,620.45
27. Importedandindigenousrawmaterials,componentsandsparepartsconsumed
For the year ended 31 March 2013
Fortheyearended31 March 2012
% Amount % Amount i)Rawmaterial Indigenous 100% 2,20,435.01 100% 61,255.70ii)Storesandspareparts Indigenous 12% 309.57 67% 289.84 Imported 88% 2,360.96 33% 139.94
100% 2,670.53 100% 429.78
28. Expenditureinforeigncurrency(accrualbasis)
BankCharges 9.49 34.27Travel 1.12 1.31
10.61 35.58
29. Earninginforeigncurrency(accrualbasis)
FOBvalueofexports 2,10,684.26 81,829.18 2,10,684.26 81,829.18
30. Foreignexchangeexposures(hedged/un-hedgedpositions)
TheCompany’sforeigncurrencyexposuresonaccountofreceivablesandpayables,nothedged,areasfollows:
Particulars
As at 31 March 2013 As at 31 March 2012 Rs. Foreign
Currency (inlakhs)
Rs. Foreign Currency(inlakhs)
Receivables(USD) 13,193.55 242.58 1,688.05 33.00Receivables(Euro) - - 53.03 0.78
31.DetailofduestomicroandsmallenterprisesdefinedundertheMSMEDAct2006
Themanagement has initiated the process of identifying enterpriseswhich have provided goods and services to theCompany andwhichqualifyunder thedefinitionofmicro and small enterprises, asdefinedunderMicro, Small andMediumEnterprisesDevelopmentAct,2006.TheMinistryofMicro,SmallandMediumenterpriseshasissuedanofficememorandumdated26August2008whichrecommendsthat theMicroandSmallenterprisesshouldmentionin theircorrespondencewithitscustomerstheentrepreneur’sMemorandumnumberasallocatedafterfillingoftheMemorandum.TheCompanyhasnotreceivedanyclaimforinterestfromanysupplierunderthesaidAct.
37Annual Report 2012-2013
As at31 March 2013
As at 31March2012
- TheprincipalamountandTheinterestduethereonremainingunpaidtoanysupplierasattheendofeachaccountingperiod,;
Principal: - - Interest: - -- TheamountofinterestpaidbyTheCompanyalongwithTheamountsof
Thepaymentmadetothesupplierbeyondtheappointeddayduringtheperiod;
- -
- Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheperiod)butwithoutaddingtheinterestspecifiedunderthisAct;
- -
- TheamountofinterestaccruedandremainingunpaidatTheendofTheperiod
- -
- Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhentheinterestduesasaboveareactually paid to the small enterprise.
- -
32. Commitmentsandcontingentliabilities a) Firmcapitalcommitments Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(netofadvances) is
Rs.78.18(previousyearRs.371.02).b) Othercommitments PendingcontractsforguarseedsandsplitsnetofadvanceandnotprovidedforisRs.2187.84(previousyearRs.6,922.54)c) Corporateguaranteesprovided TheCompanyhasgivencorporateguaranteesaggregatingRs.3,500(previousyearRs.3,500)tobanksonbehalfofothers.d) ClaimsagainsttheCompanynotacknowledgedasdebtsinrespectofIncometaxmatters,underdispute TheAdditionalCommissionerofIncomeTax,Bhiwani(theAssessingOfficer)hasraisedanadditionaldemandofRs.
8.49 for theAssessmentYear1995-96and interest thereonRs.22.23. TheCompanyfiledanappealagainst theorderpassedbytheAssessingOfficerwiththeCommissionerofIncomeTax(Appeals),Karnal.TheCommissionerofIncomeTax(Appeals)decidedthematterinfavouroftheCompanybysettingasidetheorderpassedbytheAssessingOfficer.SubsequentlytheIncometaxdepartmentfiledanappealagainsttheorderofCIT(Appeals)intheIncomeTaxAppellateTribunal(‘theITAT’),NewDelhiwhichwasacceptedbytheITAT.AggrievedbytheorderofITAT,theCompanyhasfiledanappealwiththe‘Hon’bleHighCourtofPunjab&Haryana(‘theHon’bleHighCourt’).ThematteriscurrentlypendingbeforetheHon’bleHighCourt.
e) ClaimsagainsttheCompanynotacknowledgedasdebtsinrespectofServicetaxmatters,underdispute TheCommissionerofCentralExcise,Jaipur(theAssessingOfficer)hasraisedademandofRs.490.00fortheperiod2006-
07to2010-11.TheCompanyfiledanappealagainsttheorderpassedbytheAssessingOfficerwiththeCustoms,ExciseandServiceTaxAppellateTribunal(CESTAT),NewDehiandhavedepositedtheamountofRs.490.00.ThematteriscurrentlypendingbeforeCESTAT.
33. Gratuityandotherpost-employmentbenefitplansTheCompanyhasadefinedbenefitgratuityplan.GratuityispayabletoalleligibleemployeesofthecompanyonretirementorseparationfromtheCompany.
Year Ended31 March 2013
YearEnded31March2012
a.ChangesinDefinedBenefitObligationLiability at the beginning of the year 70.90 56.46Interest cost 5.67 4.80Currentservicecost 12.19 9.67Benefitspaid - -Actuarial(gain)/loss (10.78) (0.02)Liability at the end of the year 77.98 70.90
38 Annual Report 2012-2013
As at31 March 2013
As at31March2012
b. AmountrecognisedinthebalancesheetLiabilityatthebeginningoftheyear 70.90 56.46Expensesfortheyear 7.08 14.44Benefitpaid - -Liabilityattheendoftheyear 77.98 70.90
For the Year Ended31 March 2013
FortheYearEnded31March2012
c. ExpensesrecognisedintheProfitandLossAccountCurrentservicecost 12.19 9.67Interest cost 5.67 4.80Settlementcost/credit - -Netactuarialgain/(loss)recognisedintheyear (10.78) (0.02)Netbenefitexpenses 7.08 14.44
For the year ended Fortheyearended31March2011 31March2010 31March2013 31March2012
d. ExperienceadjustmentsDefinedbenefitobligation 56.46 28.20 77.98 70.90Plan assets - - - -Deficit 56.46 28.20 77.98 70.90Experienceadjustmentonplanliabilities(loss)/gain (4.38) 1.23 11.14 (0.26)Experienceadjustmentonplanassets - - - -
e. Theprincipalassumptionsusedindeterminingthegratuitybenefitobligationareasgivenbelow:
As at31 March 2013
As at 31March2012
Discount rate 8.00% 8.50%Salaryescalationrate(p.a.) 8.00% 8.50%Expectedaverageremainingworkinglifeofemployees(years) 29.28 27.71ThediscountrateisbasedonthemarketyieldsofGovernmentbondsasatthebalancesheetdatefortheestimatedtermoftheobligation.Thesalaryescalationratetakesintoaccountinflation,seniority,promotionandotherrelevantfactors.
DemographicAssumption
1.RetirementAge 60years 60years2.Mortalityrate LIC(1994-96)
Withdrawal rate 3.Leavingservice:Upto30years 3% 3%31-44years 2% 2%Above44years 1% 1%
DuringtheyeartheCompanyhasrecordedasexpenseofRs34.33(previousyearRs.25.62)towardsprovidentfund,adefinedcontributionplan.
Leavesareencashedattheendoftheyearandnotcarriedforwarded.
34. Segmentinformation
AsperAccountingStandard17“SegmentReporting”asspecifiedinRule3ofCompanies(Accountingstandard)Rules,2006,theprimarysegmentreportingi.e.businesssegmentsisnotapplicablesincetheCompanyprimarilyoperateswithinsingle
39Annual Report 2012-2013
primarysegmentofmanufactureandexportofguargumpowder.Accordingly,primarysegmentalreportingisperformedonthebasisofgeographicallocationofcustomer.
GeographicalsegmentsatthecompanyprimarilycomprisecustomerslocatedinUS,Europe,India(Domestic)andothers.Income in relation to segments is categorizedbasedon items that are individually identified to those segments. It is notpracticaltoidentifytheexpenses,fixedassetsusedinthecompany’sbusinessorliabilitiescontracted,toanyofthereportablesegments, as the expenses, assets and liabilities are used interchangeably between segments. Accordingly, no disclosurerelatingtototalsegmentresults,totalsegmentassetsandliabilitieshavebeenmade.
(Rs.InLakhs)
Particulars Year ended 31 March 2013
Yearended31March2012
SegmentRevenueU.S.A 1,90,958.24 53,459.38Europe 16,574.17 27,113.22Domestic 72,999.25 19,727.55Unallocated 4,566.24 2,230.45Total 2,85,097.90 1,02,530.60Add :UnallocableRevenue 6,102.96 4,029.65Less :FinanceCost 2,611.21 2,587.68Depreciation and Amortization 4,543.72 4,483.81UnallocableExpenditure 2,32,329.80 76,624.08Profitbeforetax 51,716.13 22,864.68Taxexpenses 17,262.97 7,397.12Profitaftertax 34,453.16 15,467.5635. Relatedpartydisclosurea. Transactionswithrelatedpartiesaresummarisedbelow: Related party and nature of related party with whom transactions have taken place during the year 1) Keymanagementpersonnelandtheirrelatives(KMP)
Mr.B.D.Agarwal-ManagingDirectorMr.MeghRajJindal-Director(tillJuly2012)Ms.KaminiJindal-DirectorMrs.BimlaDeviJindal-Director
2) EntitiescontrolledbyKMPsVikasGranariesLimitedVikasChemiGums(India)Limited#VikasDallandGeneralMills(Partnershipfirm)ShreeGRGHomeDevelopersPrivateLimitedKuberWarehousingPrivateLimited
3) EntitiesoverwhichsignificantinfluenceisexercisedbytheKMPsVeganColloidsLimited#
#Entitiesceasestoberelatedpartywilleffectfrom1stApril2012,hencenodisclosurehavebeenmadeforthecurrentyear.
40 Annual Report 2012-2013
Nature of transaction Keymanagementpersonnel
Entities controlled by KMP
EntitiesoverwhichsignificantinfluenceisexercisedbytheKMPs
For the year ended 31-Mar-13
Fortheyear ended 31-Mar-12
For the year ended 31-Mar-13
Fortheyear ended 31-Mar-12
For the year ended 31-Mar-13
Fortheyear ended 31-Mar-12
Sales- VikasGranariesLimited - - 10,606.94 2,571.24 - -- VeganColloidsLimited - - - - - 17,147.41- VikasChemiGums(India)Limited - - - 30.27 - -Purchasesofrawmaterialsandfinishedgoods- VikasGranariesLimited - - 1,040.15 1,733.74 - -- VeganColloidsLimited - - - - - 8,281.00- VikasChemiGums(India)Limited - 11,546.00Leaserentpaid- VikasChemiGums(India)Limited - - - 2.40 - -Payment made by others on behalf oftheCompany- VeganColloidsLimited - - - - - 194.60- VikasChemiGums(India)Limited - - - 41.50 - -Payment received by the Company onbehalf of others- VikasChemiGums(India)Limited - - - 35.68 - -Salarypaidto- Mr.BDAgarwal 6.00 6.00 - - - -- Mr.MeghRajJindal 0.88 3.00 - - - -- Mrs.BimlaDeviJindal 3.00 3.00- Ms.KaminiJindal 6.00 - - - - -CorporateguaranteesgivenonbehalfofothersbytheCompany- VikasGranariesLimited - - 3,500.00 3,500.00 - -Sharespledgedbycertaindirectors fortermloantakenbytheCompany- BDAgarwal * *- BimlaDeviJindal * * - - - -- MeghRajJindal * * - - - -b. Outstanding balancesAdvances receivable- VikasChemiGums(India)Limited - - - 9,025.73Trade receivable- VeganColloidsLimited - - - - - 7,441.16- VikasGranariesLimited 2,167.43 1,363.01Otherpayable- Mr.B.D.Agarwal - 8.32 - - - -- Mrs.BimlaDeviJindal - 386.90 - - - -*TheaforesaiddirectorsoftheCompanyhavepledgedtheirsharesoftheCompanywithIFCILimitedfortermloantakenbythecompanywithasanctionedamountofRs.8,000(PreviousYearRs.8,000).Outstandingbalanceofthesaidloanason31stMarch2013isRs.2,000(PreviousYear3,600)
41Annual Report 2012-2013
36. Leases
a. ThecompanyhastakencertainAssetslikePlant&Machinery&Factorybuildingonanoperatingleasebasis.Theleaserentalsarepayablebythecompanyonamonthlybasis.
b. Futureminimumleaserentalspayableasat31stmarch2013,aspertheleaseagreements:
Year ended 31 March 2013
Year ended 31March2012
i) Notlaterthanoneyear 1.60 2.40ii) Laterthanoneyearandnotlaterthanfiveyears - 1.60iii) LaterthanfiveyearsTotal 1.60 4.00
c.LeasepaymentsrecognisedintheStatementofProfit&LossfortheperiodareRs.2.40.(PreviousyearRs.2.40)
37. Previous Year’s Figures
Theperviousyear’sfigureshavebeenre-grouped/re-arrangedwhereverconsiderednecessary.
As per our report attached ForArunKAgarwal&Associates ForandonbehalfoftheBoardofDirectorsofVikasWSPLimited CharteredAccountants FirmRegistrationNo.003917N
VimalKumarJain B.D.Agarwal BimlaDeviJindal RavinderK.GuptaPartner ManagingDirector Director CompanySecretaryMembershipno:086657
Place:SriGanganagar Place:SriGanganagar Place:SriGanganagar Place:SriGanganagarDate:28.05.2013 Date:28.05.2013 Date:28.05.2013 Date:28.05.2013
43Annual Report 2012-2013
VIKASWSPLIMITEDRegisteredOffice:RAILWAYROAD,SIWANI-127046(HARYANA)
PROXY FORM
I/We,theundersignedasEquityShareholders(s)ofthecompanyVikasWSPLimitedherebyappointMr./Mrs.............................................................of..................................................andfailinghim/her,Mr./Mrs.............................................................of................................................................asmy/ourproxytovoteforme/usattheAnnualGeneralMeetingoftheEquityShareholderstobeheldonFridaythe27thdayofSeptember,2013at10.00A.M.attheRegisteredOfficeoftheCompanyatRailwayRoad,Siwani-127046,Distt.Bhiwani,Haryanaandanyadjournmentthereof.
Signature...............................
Note:
1. Pleaseaffixrevenuestampforappropriatevalueandsignacrossthestamp.
2. TheProxymustbedepositedattheregisteredofficeoftheCompanynotlaterthan48hoursbeforethetimefixedforconveningthemeeting.
3. AllalterationsmadeintheProxyFormshouldbeinitialed.
VIKASWSPLIMITEDRegisteredOffice:RAILWAYROAD,SIWANI-127046(HARYANA)
ATTENDANCE SLIP
PLEASE COMPLETE THIS ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
1. FullNameofShareholder/Proxy .........................................................................................................................................................
2. RegisteredFolio/ClientID&DPIDNo. .............................................................................................................................................
3. IfProxy,FullNameofShareholder .....................................................................................................................................................
IherebyrecordmypresenceattheAnnualGeneralMeetingoftheEquityShareholderstobeheldonFridaythe27thdayofSeptember,2013at10.00A.M.attheRegisteredOfficeoftheCompanyatRailwayRoad,Siwani-127046,Distt.Bhiwani,Haryanaandanyadjournmentthereof.
.......................................................SignatureofShareholder/Proxy
affixRe.1/-
RevenueStamp