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Vikas Lifecare Ltd. Notes to Accounts
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You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (Rs.) 800.33 Cr. P/BV 2.27 Book Value (Rs.) 2.14
52 Week High/Low (Rs.) 8/3 FV/ML 1/1 P/E(X) 0.00
Bookclosure 27/09/2023 EPS (Rs.) 0.00 Div Yield (%) 0.00
Year End :2023-03 

Land Includes Property Land at Khasra No. 41/4 , Sultanpur Dabas ,Delhi-110084, land at Village Madanpur Dabas Kh No. 28/15 & Ganpati Dham Bhadurgarh, Haryana which is in the name of M/s Vikas Ecotech Limited. The said land was transferred to M/s Vikas Lifecare Limited vide Demerger of M/s Vikas Ecotech Limited . Further such land is hypothecated against Cash credit Limit of Rs.10,200/- Lakhs availed by M/s Vikas Ecotech Limited under consortium finance by M/s Punjab National Bank, State Bank of India and Bank of Baroda.

a. Disclosures relating to fair valuation of investment property

Fair value of the above investment property comprises of following mentioned property:

1. Property owned by the company situated at Office No. 412,4th Floor, B Wing, Express Zone, Western Express Highway, Goregaon(East), Mumbai-400097 has been valued by Value Edge Professionals Pvt Ltd (Registered Valuer) having Reg No. lBBl/ RvE/02/2022/159 at a Fair Value of Rs. 194.00 Lakhs vide Certificate no. 2022-23/05/VEP/FMV/100-10 dated 15th May'2022.

2. Property owned by the company situated at OlJice No. 1001, 10th Floor, B Wing, Express Zone, Western Express Highway, Goregaon(East), Mumbai-400097 has been valued by Value Edge Professionals Pvt Ltd (Registered Valuer) having Reg No. lBBl/ RvE/02/2022/159 at a Fair Value of Rs. 496.00 Lakhs vide Certificate no. 2022-23/05/VEP/FMV/100-09 dated 15th May'2022. Fair Value Hierarchy

The fair value of investment property has been determined by external independent property valuers, having appropriate recognised professional qualification and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categorised as a level 3 fair value based on the inputs to the valuation techniques used.

Description of valuation technique used

The Investigations for this valuation exercise are 'carried out according to IVS 102.20.Investigations made during the course of this valuation assignment have been appropriately carried away for the purpose of the valuation assignment and the basis of value. Sufficient evidences have been assembled by means of inspection, inquiry, computation and analysis to ensure that the valuation is properly supported. The following are the nature and sources of information upon which we relied upon:

i. Circle Rates Notified bv the concerned authority for the respective area.

ii. Sale Deed for area calculations and other verifications.

iii. Rates Prevailing in Open Market for Commercial Property in the Vicinity.

b. Premises given on lease:

The Company has given investment property ( land and building) on operating lease for 3 years and is renewable further as per mutually agreeable terms.

** Equity Investment in Associate company i.e. Advik Laboratories Limited taken at fair value in accordance with Ind AS-27. Company holds 22.04 % shares in its Associate company. Company has disposed off its 22.04% stake in the company during Financial Year ended 31st March,2023.

*** The company has acquired 75,000, 0.001% Compulsory Convertible Preference shares having Face Value of Rs.10 per share at the premium of Rs.1480/- per shares of M/s BriJ Gopal Construction Company Private Limited during the year ended 31st March,2023. The total Investment of 4,95,000 shares are fair valued at Rs. 785.03 per share as on 31.03.2023 on the basis of valuer report.

**** For the period ended 31st March,2023, The company has acquired 175600 shares at the rate 500 per Equity Shares off market increasing the holding to 95.36% in M/s Genesis Gas Solutions Private Limited on 1st April,2022 from 75% Holding. Earlier the company had purchased 30,000 Equity Shares which is 75 % of M/s Genesis Gas Solutions Private Limited on 15.02.2022, accordingly the entity is reported as subsidiary of M/s Vikas Lifecare Limited.

The Company has acquired 5,60,527 Shares in Shashi Beriwal And Co. Pvt Ltd at Rs 200 with a Face value of Rs 10 per share at a premium of Rs 190 per share on 1st October, 2022 which is 51.36% of total share captal as a result of which it has become subsidiary of M/s Vikas Lifecare Ltd

*Note: The company M/s Vikas Lifecare Limited was a partner in partnership firm M/s Ravi Crop Science since 11th october'2018 with terms & condition mentioned in the agreement, the said partnership was dissolved on 23rd November'2020 w.e.f. 30th June 2020. The capital balance as on dissolution date of the partnership firm was transferred to Loan account and out of which Rs. 498.32 lakhs was recoverd and the balance amount of Rs. 99.15 lakhs was written off as at 31st March'2023. The amount of Rs 282.15 Lakhs for March 31, 2023 includes the advance of Rs.70.77 Lakhs recoverable from Mr. Nikhil Gupta being excess payment of Capital advance against property bearing address House No. 79 Nagar Nigam No. 19/10A/79, Jaipur House Housing Society, Lohamandi Ward, Tehsil & District Agra (UP)-282010 and Rs. 211.38 Lakhs recoverable from Basant Projects Ltd. Basant Projects Ltd borrowed the sum of Rs 200 Lakhs at Interest rate of 8% p.a. vide agreement dated 21st February, 2023. The validity of this agreement shall be up to 31st March, 2024.

* Bank Deposits held as margin money with maturity of more than Twelve Months.

** This includes security deposit of office premises which Company has taken on lease for a period of 3 years from 23rd March,2023 to 22nd March, 2026 from Asha Deep. In complicance with the terms of Lease Agreement, the company has deposited a sum of Rs 6 Lakhs as Security Deposit. The amount of Security Deposit is discounted by Rs 0.96 Lakhs.

*** Rs 500 Lakhs includes Advance for Purchase of Shares of M/S Abhhyam Services Pvt Ltd held by Deep Sea Drilling Pvt Ltd and AVA Paisa Growth Pvt Ltd for purchase of total of 30% shareholding in the target. M/S Vikas Lifecare Ltd has entered into an agreement with Deep Sea Drilling Pvt Ltd and AVA Paisa Growth Pvt Ltd as on 7th October, 2022 for Purchase of 15000 each shares of Abhhyam Services Pvt Ltd. This agreement is valid upto 27th March, 2024.

*Capital Advances of Rs. 7,807.78 Lakhs includes the following advances made:

1 An amount of Rs. 3200.00 lakhs has been advanced to Fellow Consultancy Service Pvt Ltd in respect of purchase of agriculture land of 55 Bigha for expansion of agro division of company vide agreement dated 20th Sept'2021. The agreement is valid upto 20th March,2024.

2 An amount of Rs. 858.50 lakhs has been advanced to Rudraveerya Developers ltd in respect of purchsse of property to be used for business puposes, balance is subject to confirmation, reconciliation and consequential adjustments if any.

3 An amount of Rs. 1500.00 lakhs has been advanced to Priety Kurele in respect of Purchase of agriculture land 40 Bigha for expansion of agri division of company vide agreement dated 18th Auguest'2021 which is valid upto 18th Auguest'2024.

4 An amount of Rs. 1549.85 lakhs has been advanced to Ringlets Realtors Pvt Ltd in respect of Purchase of agriculture land divided into two plots measuring area of 3024 Sq. Yard & 4432 Sq Yard. vide agreement dated 8th Dec'2021 which is valid upto 8th Dec'2024

5. An amount of Rs. 699.43 lakhs has been advanced to Basant Projects ltd in respect of Purchase of corporate office in Central Delhi.

*The above figure comprises 3 property owned by the company with intention to held for sale-:

1. UnitNo.G-31,FirstFloor without Roof Right Plot No. M.P.I.Vikas Cinemall Indranagar, Tehsil-Dehradun, Distt-Dehradun, Uttarakhand, with market value of Rs. 60.00 Lakhs with a carrying cost of Rs 49.48 Lakhs. Against which company has received a sum of Rs. 50.00 Lakhs as advance, which is shown under note no. 24

2. Shop No G-19-A Plot No 813/1 GT Road Shahdara New Delhi with market value of Rs. 90.00 Lakhs with a carrying value of Rs 87.25 Lakhs . Agreement has been executed between both the parties to sell the property for a consideration of Rs. 90.00 Lakhs against which company has received a sum of Rs. 90.00 Lakhs as advance, which is shown under note no. 24

3. House No. 79 Nagar Nigam No. 19/10A/79, Jaipur House Housing Society, Lohamandi Ward, Tehsil & District Agra (UP)-282010 with market value of Rs.351.00 Lakhs and a carrying value of Rs 241.44 Lakhs. Against which company has received a sum of Rs. 300.00 Lakh as advance. This property is mortgaged against working capital facility of Rs. 450 lakhs (including fund based Rs. 300 lakhs & non fund based Rs. 150 lakhs) availed by subsidiary company M/s Genesis Gas solutions private limited from union bank of india.

(iii) Terms / rights attached to Equity Shares A. Ordinary Shares of Re. 1/-

(a) In respect of every Ordinary Share (whether fully paid or partly paid), voting right and dividend shall be in the same proportion as the capital paid-up on such Ordinary Share bears to the total paid-up Ordinary Capital of the Company.

(b) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. No dividend declare in the current year.

(c) In the event of liquidation, the shareholders of Ordinary Shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Over the period of five years immediately preceding March 31, 2022 and March 31, 2021, The company has issued 12,13,60,560 Shares @ 1 each as bonus shares during F.Y 2017-18. Further the company has allotted 238,733,535 Shares @ 1 each to the shareholders of M/s Vikas Ecotech Limited pursuant to Order of Delhi National Company Law Tribunal demerger order dated 31.10.2018 during the F.Y 2018-19. Further, no shares were bought back during the said period.

18A Qualified Instutional Placements:

During the financial year ending 31st March'2023, the company has completed 3 Qualified Instutional Placements (QIP) having issue size of Rs. 500 lakhs each:

- 1st QIP: The company has Issued 12,50,00,000 Shares in 1st QIP @ Rs. 4 per share (F.V of Rs.1 at premium of Rs.3). The shares were allotted on 2nd June'2022y & were listed on Bombay stock exchange & National Stock Exchange of India.

- 2nd QIP: The company has Issued 10,41,66,666 shares during 2nd QIP @ Rs 4.80 Per share(F.V of Rs.1 at premium of Rs.3.80). The shares were allotted on24th August'2022 & were listed on Bombay stock exchange & National Stock Exchange of India.

- 3rd QIP: The company has Issued 10,75,26,881 shares during 3rd QIP @ Rs 4.65 Per share(F.V of Rs.1 at premium of Rs.3.65). The shares were allotted on24th November'2022 & were listed on Bombay stock exchange & National Stock Exchange of India. All the issue proceeds are used for the objectives as mentioned in their respective letter of offer.

Right Issue:

During the financial year ending 31st March'2023, Company had called First & Final call of 2nd Right Issue (issue dated 15th Feb 2022) of Rs. 1,06,38,695.20/- consisting of 6258056 shares of Rs. 1.70(F.V of Rs.0.60 at premium of Rs.1.10). The company had received successful and valid call money of Rs. 14,29,200.20/- consisting 8,40,706 shares . The amount received during the year has been spent on objectives as stated in letter of offer except an amount of 11.99 lakhs lying in escrow accounts of the company which is still unspend as on year end.

Capital Reserve

The Company recognizes profit or loss on purchase, sale, issue or cancellation of the Company's own equity instruments to capital reserve Securities Premium Reserve

Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium Reserves.

Retained Earnings

Retained Earning are created from the profit / loss of the Company, as adjusted for distributions to owners, transfers to other reserves, etc.

Remeasurement of defined benefit Plan

Remeasurement of defined benefit Plan represents gain or losses arising on the actuarial valuation of defined benefit plans.

Equity Instruments through Other comprehensive Income

This reserve represent the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets have been disposed off.

Secured loan from Banks

-Loan from Axis Bank of Rs. 5.00 Lakhs ( Previous year Rs. 16.67 Lakhs) Secured against hypothecation of car at the rate of interest 8.51% p.a. The loan is repayable in 36 equal monthly instalment of Rs. 1.05 Lakhs per month. The remaining maturity period is less than 12 Months from the end of the year.

- Loan from ICICI Bank of Rs. 41.51 Lakhs Secured against hypothecation of car at the rate of interest 8.00% p.a. The loan is repaid during the year on 13th June,2022

- Loan from Union Bank of India of Rs. 6.30 Lakhs ( Previous year Rs 10.28 Lakhs) Secured against hypothecation of car at the rate of interest 7.40% p.a.. vide sanction letter dated 11th August'2021 payable in 36 Months commencing from 29th August'2021 via EMI of Rs. 0.39 lakhs per month. The remaining maturity period is 16 Months from Balance sheet Date.

Loan from Union Bank of India of Rs. 12.82 Lakhs ( Previous Year Rs. 14.49 Lakhs) Secured against hypothecation of car at the rate of interest 7.30% p.a. sanction vide sanction letter dated 11th Aug'2021 payable in 84 Months commencing from 12th Sept'2021 via EMI of Rs.0.24 Lakhs per month. The remaining maturity period is 65 Months from Balance sheet Date.

Loan from Union Bank of India of Rs. 51.11 Lakhs ( Previous Year Rs 57.75 Lakhs) Secured against hypothecation of car at the rate of interest 7.25% p.a. sanction vide sanction letter dated 3rd Nov'2021 payable in 84 Months commencing from 2nd Dec'2021 via EMI of Rs.1.60 Lakhs per month. The remaining maturity period is 68 Months from Balance sheet Date.

Loan from Punjab & Sind Bank of Rs. 225 Lakhs ( Previous Year :Nil) Secured against hypothecation of car at the rate of interest 9.43% p.a. payable in 84 Months commencing from 30th Nov'2022 via EMI of Rs.3.67 Lakhs per month. The remaining maturity period is 79 Months from Balance sheet Date.

Loan from Punjab & Sind Bank of Rs. 672 Lakhs ( Previous Year :Nil) Secured against hypothecation of Property situated at House No. 64, Babar Road, Bengali Market, New Delhi-110001 at the rate of interest 8.05% p.a. payable in 120 Months commencing from 31st Oct'2022 via EMI of Rs.8.17 Lakhs per month. The remaining maturity period is 114 Months from Balance sheet Date. *lnter Corporate Loans

Loan of Rs. 104.37Lakhs ( Previous year 127.82Lakhs) from M/S Just Right Life Ltd (Earlier M/s Jasmine Ispat Pvt Ltd) is an unsecured loan, having interest rate 6% p.a., repayable on demand.

Default in repayment of dues

The Company has not defaulted in repayment of dues to financial institutions and banks during the year.

1. A sum of Rs. 50.00 Lakhs received as capital Advance from M/s Just Right Life Limited ( Formerly Known Stepping Stone Construction Pvt Ltd) against property situated at UnitNo.G-31,FirstFloor without Roof Right Plot No. M.P.I.Vikas Cinemall Indranagar, Tehsil-Dehradun, Distt-Dehradun, Uttarakhand.

2. A sum of Rs. 90.00 Lakhs received as capital Advance from M/s Vrindaa Advanced Materials Pvt Ltd against property situated at Shop No G-19-A Plot No 813/1 GT Road Shahdara New Delhi

3. A sum of Rs. 300.00 Lakhs received as capital Advance from Sneha Garg against property situated at House No. 79 Nagar Nigam No. 19/10A/79, Jaipur House Housing Society, Lohamandi Ward, Tehsil & District Agra (UP)-282010.

Secured loan from banks (Cash Credit & Term Loan)

*Secured from Bank includes cash credit ( under e-DFS) Limit Rs 451.83 Lakhs ( Previous Year Rs.388.36 Lakhs) from State Bank of India which is secured against hypothecation of stock and book receivables belonging of ONGC Petro Additions Limited. The loan is disbursed @ 14.75 % . The said loan is secured against collateral security of residential flat at Second Floor, A-25,G.T Road,Bharola wala Bagh,Near Indira Nagar,Delhi-110033. Further the personal guarantee of Mr. Vikas Garg and Mr. Vivek garg, Director of the company is being provided to the bank.

** Company has borrowed a sum of Rs 50.52 Lakhs from its subsidiary company at an Interest of 6% p.a. to meet the immediate business requirements of the company.

*Primarily inclusion of certain liabilities not forming part of creditors for goods.

48 Information on Segment Reporting pursuant to Ind AS 108 - Operating Segments Operating segments:

Real estate Division

Trading & Manufacturing Division -Agro Trading & Manufacturing Division -Polymers Trading Division -Infrastructure Identification of segments:

The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss of the segment and is measured consistently with profit or loss in these financial statements. Operating segments have been identified on the basis of the nature of products and Services.

Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).

Segment assets and liabilities:

Assets used by the operating segments mainly consist of trade receivables, advance to suppliers, inventories. Segment liabilities include trade payables, advance from customers. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets/liabilities.

The measurement principles of segments are consistent with those used in preparation of these financial statements. There are no inter-segment transfers.

5. Major Customers

(a) For the Year ending March 2023 Revenue from One Customers of the Segment Trading Infras. represented approximately Rs. 8379.04 Lacs of the total revenue.

(b) For the year ending 31st March 2022 Revenue from One Customer of the Segment Trading Infras. represented approximately Rs. 6237.42 Lakhs of the total revenue.

49 Fair value disclosures

i) Fair values hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within the fair value hierarchy, described as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There have been no transfers between levels during the period.

Valuation process and technique used to determine fair value

(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range.

(iii) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

The management assessed that cash and cash equivalents, other bank balances, trade receivables, trade payables, short term borrowings and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair value

All long term borrowing facilities availed by the Company are variable rate facilities which are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company's creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example by granting loans and receivables to customers, placing deposits, etc. The Company's maximum exposure to credit risk is limited to the carrying amount of following types of financial assets.

- cash and cash equivalents,

- trade receivables,

- loans & receivables carried at amortised cost, and

- deposits with banks

- Investments

a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(a) Low credit risk (b) Moderate credit risk (c) High credit risk

Financial instruments and cash deposits

Credit risk from balances/investments with banks and financial institutions is managed in accordance with the Company's treasury risk management policy. Investments of surplus funds are made only with approved counterparties and within limits assigned to each counterparty. The limits are assigned based on corpus of investable surplus and corpus of the investment avenue. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments Trade receivables and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are an individual or a legal entity, whether they are a institutional, dealers or end-user customer, their geographic location, industry, trade history with the Company and existence of previous financial difficulties.

Expected credit loss for trade receivables:

The Company based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade receivable using lifetime expected credit loss.

Loan & Other financial assets measured at amortised cost includes security deposits, fixed deposits loan to related parties and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Company's objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral obligations . The Company requires funds both for short term operational needs as well as for long term investment programs mainly in growth projects. The Company closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents, liquid investments and sufficient committed fund facilities, will provide liquidity.

a) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity. Company's based on their contractual maturities for all non-derivative financial liabilities.

The below table analyses the Company's non-derivative financial liabilities as at the reporting date, into relevant maturity groupings based on the remaining period (as at that date) to the contractual maturity date. The amounts disclosed in the below table are the contractual undiscounted cash flows.

b) Foreign Currency Risk

Foreign exchange risk arises on future commercial transactions and on all recognised monetary assets and liabilities, which are denominated in a currency other than the functional currency of the Company. The Company's management has set a policy wherein exposure is identified, a benchmark is set and monitored closely, and accordingly suitable hedges are undertaken. The policy also includes mandatory initial hedging requirements for exposure above a threshold.

c) Competition and Price Risk

The Company faces competition from competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

d) Equity price risk management

The Company's exposure to equity price risk arises from investment held by the Company and classified as FVTOCI. In general, these investments are strategic investments and are not held for trading purposes. Reports on the equity portfolio are submitted to the Company's senior management on a regular basis

51 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio optimum. The Company includes within net debt, interest bearing term loans and working capital borrowings.

* Income Tax dispute for the A.Y. 2017-18 to Rs. 45.03 Lakhs is pending at CIT(A), Delhi

** The Company is contingently liabilities on export obligation dues pending on the imported goods against advance Authorisation *** Capital Commitment comprises of amounts to be paid to Ringlet Realtor pvt ltd in respect of property for which some portion of total purchase consideration is paid (Refer note No 10) and Rs. 1000 lakhs of an agreement with Deep Sea Drilling Pvt Ltd and AVA Paisa Growth Pvt Ltd as on 7th October, 2022 for Purchase of 15000 each shares of Abhhyam Services Pvt Ltd.(Refer note No 9).

- The Directorate of Enforcement, Delhi Zonal Office, New Delhi has issued a provisional attachment order ("Order”) bearing number 04/2020 and file number ECIR/10/DZ-1/2017 under Section 5(1) of the Prevention of Money Laundering Act, 2002 ("PMLA”) against our Company, its then Director Mr. Vishal Garg and other third parties. Through the said attachment, bank account SBI Bank, Nariana Vihar, New Delhi maintained with has been attached for an amount of Rs. 6.20 Lakhs. The ED has realised a sum of Rs 6.20 Lakhs from the attached accounts during the year.

- There is demand of Rs 4.23 Lakhs for past outstanding TDS demand as per traces site as at 31.03.2023

- The Director General of Goods & Service Tax Intelligence Ghaziabad Unit has searched the premises of the company on 7th of April'2022 due to non existence of supplier of the company, the said case is under process till the date of reporting. Further the company have deposited Rs 200 Lakhs under protest to the treasury of Government.

- The company has not obtained registration of ESI & PF for Head office, so the amount has not been deposited which have been booked by the company during the year. Interest & penalty may arise on the same but cannot be determined as on the date of the financial statements.

Sub Notes:

1) Trade Receivables outstanding for more than 12 months was reported as current trade receivables which is reclassified to Non-current trade receivables during the year and accordingly re-classified in the previous year.

2) Loans outstanding for more than 12 months was reported as Current Financial Assets which is reclassified to Non- Current Financial assetrs during the year and accordingky re- classified in the previous year.

3) Other Current Financial Assets outstanding for more than 12 months is reclassified to Oher Non- Current Financial assets during the year and accordingky re- classified in the previous year. TDS Receivale is reclassified to Current Tax Liabilities (Net) during the year and accordingly re-classified in the previous year. Advance to Employees is reclassified to Other Current Assets during the year and accordingly re-classified in the previous year.

4) Other Current Financial Liabilities outstanding for more than 12 months is reclassified to Oher Non- Current Financial Liabilities during the year and accordingky re- classified in the previous year. Capital Advance received of Rs 10 Lakhs is reclassified to Other Current Liabilities as Advance From Customers during the year and accordingly re-classified in the previous year. Expenses Payable is reclassified From Other Current Liabilities to Other Current Financial Liablities during the year and accordingly re-classified in the previous year.

b. Details of investments made and guarantees & securities provided are as-:

- For details of investment, refer note 6.

-Securities Provided: Property at Land at Khasra No. 41/4 , Sultanpur Dabas ,Delhi-110084, land at Village Madanpur Dabas Kh No. 28/15 & Ganpati Dham Bhadurgarh, Haryana and property at Plot (Sector-2),Chaitanya Vihar, Vrindavan Mathura, UP & 102/ATN , A-9 Narela included in real Estate Division as inventory are hypothecated against Cash credit Limit of Rs.10,200.00 Lakhs availed by M/s Vikas Ecotech Limited under consortium finance by M/s Punjab National Bank, State Bank of India & Bank of Baroda.

-Loan from Axis Bank of Rs. 5.00 Lakhs ( Previous year Rs. 16.67 Lakhs) Secured against hypothecation of car at the rate of interest 8.51% p.a. The loan is repayable in 36 equal monthly instalment of Rs. 1.05 Lakhs per month. The remaining maturity period is less than 12 Months from the end of the year.

- Loan from ICICI Bank of Rs. 41.51 Lakhs Secured against hypothecation of car at the rate of interest 8.00% p.a. The loan is repaid during the year on 13th June,2022

- Loan from Union Bank of India of Rs. 6.30 Lakhs ( Previous year Rs 10.28 Lakhs) Secured against hypothecation of car at the rate of interest 7.40% p.a.. vide sanction letter dated 11th August'2021 payable in 36 Months commencing from 29th August'2021 via EMI of Rs. 0.39 lakhs per month. The remaining maturity period is 16 Months from Balance sheet Date. Loan from Union Bank of India of Rs. 12.82 Lakhs ( Previous Year Rs. 14.49 Lakhs) Secured against hypothecation of car at the rate of interest 7.30% p.a. sanction vide sanction letter dated 11th Aug'2021 payable in 84 Months commencing from 12th Sept'2021 via EMI of Rs.0.24 Lakhs per month. The remaining maturity period is 65 Months from Balance sheet Date. Loan from Union Bank of India of Rs. 51.11 Lakhs ( Previous Year Rs 57.75 Lakhs) Secured against hypothecation of car at the rate of interest 7.25% p.a. sanction vide sanction letter dated 3rd Nov'2021 payable in 84 Months commencing from 2nd Dec'2021 via EMI of Rs.1.60 Lakhs per month. The remaining maturity period is 68 Months from Balance sheet Date. Loan from Punjab & Sind Bank of Rs. 225 Lakhs ( Previous Year :Nil) Secured against hypothecation of car at the rate of interest 9.43% p.a. payable in 84 Months commencing from 30th Nov'2022 via EMI of Rs.3.67 Lakhs per month. The remaining maturity period is 79 Months from Balance sheet Date.

Loan from Punjab & Sind Bank of Rs. 672 Lakhs ( Previous Year :Nil) Secured against hypothecation of Property situated at House No. 64, Babar Road, Bengali Market, New Delhi-110001 at the rate of interest 8.05% p.a. payable in 120 Months commencing from 31st Oct'2022 via EMI of Rs.8.17 Lakhs per month. The remaining maturity period is 114 Months from Balance sheet Date.

*Secured from Bank includes cash credit ( under e-DFS) Limit Rs 451.83 Lakhs ( Previous Year Rs.388.36 Lakhs) from State Bank of India which is secured against hypothecation of stock and book receivables belonging of ONGC Petro Additions Limited. The loan is disbursed @ 14.75 % . The said loan is secured against collateral security of residential flat at Second Floor,A-25,G.T Road,Bharola wala Bagh,Near Indira Nagar,Delhi-110033. Further the personal guarantee of Mr. Vikas Garg and Mr. Vivek garg, Director of the company is being provided to the bank.

61 Other Statutory Information

a) The company does not have any "Benami Property”, where any proceeding has been initiated pending against the company for holding any "Benami Property”.

b) The company has advanced loan to its related party M/S Shashi Beriwal & Co. Pvt Ltd during the financial year.

c) The company has not been declared as a wilful defaulter by any lender who has the power to declare a Company as a wilful

defaulter at any time during the financial year or after the end of the reporting period but before the date when the financial statements are approved.

d) The company has utilized funds raised from the issue of securities or borrowings from banks & financial institutions for the specific purposes, for which they were issued/taken.

e) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding that the intermediatory shall: -

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

ii. Provide any guarantees, securities or the like or on behalf of the ultimate beneficiaries

f) The company has not received any funds from any person(s) or entity(ies), including foreign entity(ies) (funding party) with

the understanding (whether recorded in writing or otherwise) that the company shall: -

i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

ii. Provide any guarantees, securities or the like or on behalf of the ultimate beneficiaries.

g) There are no transactions and/or balances outstanding with companies struck off under section 248 of the Companies Act'2013.

h) The company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act'1961.

i) The company has not traded or invested in cryptocurrency or virtual currency during the financial year.

j) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act'2013 read with Companies (Restriction on Number of Layers) Rules'2017.

k) The company does not have any charges or satisfaction of charges which is yet to be registered with the registrar of companies (ROC) beyond the satisfactory period except no charge has been created on hypothecation of vehicle against loan of Rs 12.50 Lakh from banks.

l) Details of monthly statement of current assets filed by the company with bank & their difference is as per Note No.24A

62 Approval of standalone financial statements

The standalone financial statements were approved for issue by the Board of Directors of the Company on 23rd May, 2023 subject to approval of shareholders.


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