Vikas Lifecare Ltd Directors Report.

The Board of Directors hereby submits the report of the business and operations of your Company, along with the audited financial statements, for the financial year ended March 31, 2021.

FINANCIAL RESULTS AND OPERATIONS

The financial performance for the year ended March 31, 2021 is summarized below:

(Amount in Lacs)

Particulars 2020-21 2019-20
Net Sales /Income from Business Operations 7499.45 15613.00
Other Income 101.52 215.59
Total Income 7600.98 15828.59
Cost of material consumed 2437.83 13486.94
Purchase of Stock in trade 3335.52 2122.69
Employee Benefit Expense 65.63 99.29
Changes in Inventories 602.56 (1363.89)
Financial Costs 535.39 501.08
Other Expenses 280.68 246.16
Profit before Depreciation 945.93 736.32
Less: Depreciation 68.43 74.17
Add : Exceptional items (424.89) (411.50)
Net Profit Before Tax (149.98) 250.62
Less Current Tax 137.46 83.92
Less Previous year adjustment of Income Tax 33.56 (6.10)
Less Deferred Tax 29.15 33.08
Profit for the Period (350.17) 139.72

During the year under review, the Company achieved a turnover of Rs. 7499.45 Lacs as against Rs. 15613.00 Lacs for previous year whereas, the Loss of the Company for the period under review were Rs. (350.17) Lacs as compared to profit of the company Rs. 139.72 Lacs in the previous year.

COMPANY OVERVIEW

Vikas Lifecare Limited established in the year 1995, is principally engaged in the business of recycling plastic waste and trading of polymer compounds, manufacturing of polymers compounds. Vikas Lifecare limited is polymer additive related Chemicals Trading House, based in the capital city, it has rich domain experience and in-depth knowledge of International and Local Polymers Market.

Having a more than 2-decade strong operating history in the manufacturing of specialty chemicals for plastics industry, arms VLL with in-depth understanding of the product designing and market trends. The Company is having rich domain experience and in-depth knowledge of International and Local Polymer markets.

BUSINESS OVERVIEW

Our Company is principally engaged in the business of Recycling Plastic Waste (Recycling Materials) and trading of Polymer Compounds. Until 2019, the business of our Company was engaged in the trading of various Polymer Compounds such as Ethylene-vinyl acetate (EVA Compounds), Polyvinyl chloride resins (PVC resins), chlorinated Parrafin, Polyethylene Compound (PE Compounds) and Thermoplastic Rubber Compounds (TPR Compounds). However, subsequent to the acquisition of Recycled and Trading Compounds Division of group concern Vikas Ecotech Limited under the scheme of arrangement approved by National Company Law Tribunal, Principal Bench, New Delhi, our Company also started manufacturing Polymer Compounds such as PE Compound, Polyvinyl Chloride Compound (PVC Compounds), V blend SOE Compound, Polypropylene Compounds (PP granules), TPR Compounds from FY 2019-20 onwards.

During December 2020, our Company also initiated trading in raw and finished cashew nuts to pursue one of its business strategies to venture into FMCG Industry.

Over the years, we have established ourselves as a successful trader of polymer compound. Our products cater various industries such as agriculture and infrastructure, packaging, organic and inorganic chemicals, electrical, FMCG, footwear, pharmaceuticals, automotive, and other consumer goods.

FUTURE OUTLOOK

Our Company aims to expand the sale of our products to other industries where such products have application. Our Company also intends to venture into Food protection and Personal Hygiene segment of FMCG industry with the total investment of approx. Rs. 100 Crores in two years and is process of acquiring portfolio of trademarks, comprising of popular and well-established national brands.

Our Company also intends to tap into recycling of Multi-Layered Packages (MLPs), and is in the advance stages of joining hands with the renowned research institution to acquire technology and to set up its own manufacturing units for recycling of MLPs.

Our Company also intends to enter into namely Producer Responsibility Organization (PRO), Extended Producer Responsibility (EPR) as an extension of its recycling of plastic waste business, personal hygiene and other items of fast- moving consumer goods. This will enable our Company to venture into new products, processes, segments, businesses which are under the existing circumstances conveniently and advantageously could be combined with the present activities of the Company.

CAPITAL STRUCTURE

Authorized Share Capital

he Authorised Share Capital of the Company has increased from Rs. 67,00,00,000 to Rs. 100,00,00,000 by passing special resolution through postal ballot dated March 14, 2021. The Authorized Share Capital of the Company as on March 31, 2021 was Rs. 100,00,00,000 divided into 100,00,00,000 Equity Shares of Re.1 each.

Paid-up Share Capital

As on March 31, 2021, the Issued and Paid up Share Capital of the Company stood at Rs. 66,34,95,495/- divided into 66,34,95,495 equity shares of face value of Re. 1/- per share.

CHANGE IN NAME OF THE COMPANY

Pursuant to members approval obtained by mean of passing a Special Resolution through postal ballot, name of the Company was changed from Vikas Multicorp Limited to Vikas Lifecare Limited and fresh Certificate of incorporation consequent upon change of name was issued by the Registrar of Companies, NCT Delhi on April 9, 2021.

LISTING OF SECURITIES

The Equity Shares of your Company are listed and traded at BSE and National Stock Exchange of India Limited.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) Management Discussion and Analysis report ("MD&A Report") providing a detailed overview of your Companys performance, industry trends, business and risks involved is provided separately and is forming part of the Annual Report.

SUBSIDIARY COMPANIES, JOINT VENTURE AND CONSOLIDATED FINANCIAL STATEMENTS

During the year, under review your Company does not have a subsidiary, joint venture or associates, hence reporting requirements are not applicable.

DIVIDEND

To conserve the resources for the expansion of business in the long run, your Directors have not recommended any dividend for the Financial Year 2020-21 and have decided to retain the profits.

CORPORATE GOVERNANCE AND ETHICS

The Company believes in adhering to the best corporate governance practices and its philosophy emphasizes on fair and transparent governance and disclosure practices which helps your Company to follow the path of its vision and mission. It strongly believes in developing best corporate governance policies and procedures based on principles of fair and transparent disclosures, equity, accountability and responsibility.

A detailed report on Corporate Governance, in terms of Regulation 34 of the Listing Regulations is forming part of the Annual Report. A certificate confirming compliance with requirements of Corporate Governance as enumerated under the extant provisions of Listing Regulations issued by Mr. Pankaj Kumar Gupta, Proprietor of Kumar G & Co., Company Secretaries is also annexed to the said report.

CORPORATE SOCIAL RESPONSIBILITY

The provisions of Corporate Social Responsibility are not applicable to the Company and hence disclosures under Sec 135 of the Companies Act, 2013 are not applicable to the Company.

BOARD OF DIRECTORS & KEY MANAGERIAL PERSONNEL

The Board of Directors provides the blue print to the success of any organization, it plans and implements various strategies to grow not only in numbers but in value and cater to its stakeholders.

Your Companys Board consists of learned professionals and experienced individuals from different fields. Presently, your Board comprises of Six Directors, Chief Financial Officer and Chief Executive Officer. Amongst the directors, two are executive, one is non-executive and three are Independent Directors including two Women Directors on the Board. The Board met 7 (seven) times during the year, details pertainingto Board and Committee Meetings held during the year are detailed in Corporate Governance Report.

KEY MANAGERIAL PERSONNEL

The Board of your Company consisted of the following Key Managerial Personnel (KMPS) as on the year ended March 31,2021:

i. Chief Financial Officer : Mr. Chandan Kumar
ii. Chief Executive Officer : Mr. Vijay Kumar Sharma
iii. Company Secretary : Ms. Ujjwal Verma

Mr. Gaurav Aggarwal was appointed as the Company Secretary and Compliance officer on November 11, 2019 who later resigned w.e.f August 3, 2020.

Thereafter, Ms. Ujjwal Verma was appointed as the Compliance Officer and Company Secretary of the Company w.e.f August 3, 2020 and September 7, 2020 respectively who later resigned w.e.f April 29, 2021.

hereafter, Ms. Rashika Gupta was appointed as the Compliance officer and Company Secretary on March 26, 2021 and April 29, 2021 respectively who later resigned w.e.f June 25, 2021.

Further, Ms. Monika Soni has been appointed as Company Secretary and Compliance officer on June 25, 2021.

DECLARATION OF INDEPENDENCE

The Independent Directors have confirmed that they meet the criteria of Independence as stipulated under Section 149(6) of the Companies Act, 2013 read with the Regulation 16 (1) (c) of the Listing Regulations and they are not aware of any circumstances or situation, which exist or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgment and without any external influence as an Independent Director of the Company.

The Board conforms to the declaration of the Independent Directors and there being no doubts as to veracity of the same, places the same on record.

BOARD COMMITTEES

In compliance with the requirements of Companies Act, 2013 and Listing Regulations your Board had constituted various Board Committees including Audit Committee, Nomination & Remuneration Committee, and Stakeholders Relationship Committee. Details of the constitution of these Committees, which are in accordance with regulatory requirements, have been uploaded on the website of the Company viz. www.vikaslifecarelimited.com.

Details of scope, constitution, terms of reference, number of meetings held during the year under review along with attendance of Committee Members is provided under Corporate Governance Report forming part of the Annual Report.

AUDITORS AND AUDITORS REPORT

Statutory Auditors

M/s Goyal Nagpal & Co., Chartered Accountants (FRN: 018289C) were appointed as the Statutory Auditors of the Company with the shareholders approval for their appointment obtained at the Annual General Meeting held on September 26, 2019 to hold office for a term of 5 years commencing from the conclusion of the 24th Annual General Meeting till the conclusion 29th Annual General Meeting.

However, M/s Goyal Nagpal & Co., Chartered Accountants (FRN: 018289C) resigned on August 25, 2021, signifying their inability to continue as Statutory Auditors of the Company which resulted into casual vacancy in the office of Statutory Auditor .

The Board of director of your Company in order to fill such casual vacancy recommended the appointment of M/s RSPH & Associates, Chartered Accountant (FRN 003013N) as Statutory Auditors of the Company to hold office for a term of 5 years from the conclusion of ensuring Annual General Meeting of the Company up to the conclusion of Annual General Meeting to be held for considering annual accounts for the financial year 2025-26.

Further, there are no qualifications, reservations, or adverse remarks in the Report issued by M/s Goyal Nagpal & Co., Statutory Auditors, for the year under review. Remarks made in the Report are self explanatory and do not call for any further comments from your Directors.

Secretarial Auditor

M/s. Kumar G & Co., Company Secretaries were appointed as the Secretarial Auditor of your Company to carry out the Secretarial Audit for the financial year under review. The Secretarial Audit Report issued bythe Secretarial Auditors in Form No. MR-3 is annexed with this Report.

In terms of extant provisions of Listing Regulations read with SEBI circulars issued on the subject, a Secretarial Compliance Report was also obtained by the Company from the Secretarial Auditors and the same was also intimated to the Stock Exchange.

There are no qualifications or reservations in the Secretarial Audit Report or in the Annual Secretarial Compliance Report. Cost Audit

As your Company is in trading business and during the year under review, was neither engaged in the manufacturing of goods nor a service provider, therefore requirements of maintenance of cost records and cost audit as prescribed under the provisions of Companies Act 2013 are not applicable to the Company.

SECRETARIAL STANDARDS

During the year under review the Company has complied with all applicable Secretarial Standards issued by Institute of Company Secretaries of India.

DEPOSITS

During the period under review the Company has not accepted any public deposits and therefore no amounton account of principal or interest on public deposits was outstanding as on the date of the Balance Sheet.

REMUNERATION OF DIRECTORS, KEY MANAGERIAL PERSONNEL AND PARTICULARS OF EMPLOYEES

Disclosures pertaining to the remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel), Rules, 2014 is also annexed to this Report.

SIGNIFICANT AND MATERIAL ORDERS

There are no significant or material orders passed by the regulators, courts or tribunals having an impact on the future operations of the Company or its going concern status.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

In terms of Section 186 of the Companies Act, 2013, particulars of inter-corporate loans, guarantees and investments are provided in the notes to Financial Statements.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITHRELATED PARTIES REFERRED TO IN SECTION 188

All Related party transactions are entered on an arms length basis and are in compliance with the applicable provisions of the Companies Act, 2013 and the Listing Regulations. There are no materially significant related party transactions made by the Company with Promoters, Directors or Key Managerial Personnel etc. which may have potential conflict with the interest of the Company at large. Companys policy on related party transactions can be accessed at its website www.vikaslifecarelimited.com.

The particulars of every contract and arrangement entered into by the Company with related parties referred to in subsection (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto are disclosed in Form No. AOC-2 which is annexed to this Report.

ANNUAL RETURN

The Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 of your Company for the financial year under review is available at website of your Company www.vikaslifecarelimited.com under the "Investor Zone" section.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY

Post the period under review, Company has allotted 26,53,98,198 Equity Shares of face value of 1 each at a price of Rs.1.85 per Equity Share through right issue on June 22, 2021. Consequently, the issued & paid up Capital of the company stands increase from Rs.6 6,34,95,495 to Rs.92,88,93,693. As on signing on this report, the Issued and Paid up Share Capital of the Company stood at Rs.92,88,93,693 divided into Rs.92,88,93,693 equity shares of face value of Rs.1/- per share.

PARTICULARS REGARDING CONSERVATION OF ENERGY ETC.UNDER SECTION 134(3)(m) OF THE COMPANIES ACT, 2013 AND RULES MADE THEREIN

As per the provisions of Section 134(3)(m) of the Act read with Companies (Accounts) Rules, 2013, Details ofsteps taken by your Company to conserve energy through its Sustainability initiatives, Research and Development and Technology Absorption have been disclosed as part of the Annual Report.

ADEQUACY OF INTERNAL CONTROLS

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. The Statutory and the Internal Auditors routinely conduct system checks and give their report after evaluation of the efficacy and adequacy of internal control systems including controls with respect to the financial statements, its compliance with operating systems, accounting procedures and policies in the Company. Based on the report of Internal Audit, the departments undertake corrective action in their respective areas and thereby strengthen the controls.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION ANDREDRESSAL) ACT, 2013

The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year under review, no compliant was received in this regard.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 134(3) (C) read with Section 134(5) of the Act, the Directors, to the best of their knowledge and ability, hereby confirm that:

i. in the preparation of the annual accounts, the applicable accounting standards had been followed with proper explanation relating to material departures;

ii. they have selected such accounting policies in consultation with Statutory Auditors and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the Financial Year March 31, 2021 and of the profit and loss of the company for the Financial Year;

iii. they have taken proper and sufficient care, to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;

iv. The annual accounts of the Company have been prepared on a going concern basis.

v. The directors had laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

vi. They had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

Your Directors place on record their appreciation for the valuable support and cooperation of the Companys Bankers, Government Agencies, Customers, Suppliers, Shareholders, Employees and other statutory authorities, who have reposed their continued trust and confidence in the Company.

For Vikas Lifecare Limited For Vikas Lifecare Limited
(Vikas Multicorp Limited) (Vikas Multicorp Limited)
Vijay Kumar Sharma Vivek Garg
Date: 25.08.2021 Whole-Time Director Managing Director
Place: New Delhi DIN:08721833 DIN:00255443