Vikas Wsp Ltd Management Discussions

industry structure & development

The Company "Vikas WSP" was established in 1988. The Company is one of Indias foremost guar gum powder (GGP) manufacturers, supplying to all sectors of the food industry with an extensive range of quality products. Besides food, the Company also offers guar gum for technical applications such as pet food, oil drilling and fracturing, textile printing, paper making, etc. The per annum production capacity of all grades of guar gum powder is 58800 MT. The Company is committed to providing its customers with overall services and values that are the best. It has contributed significantly to our national output, employment and exports.

companys performance

Your Company is under Corporate Insolvency Resolution Process (CIRP). During the current year under review your, there are no business operations in the Company.

During the current year under review, company has incurred loss of Rs. 2,649.38 Lakhs as compared to the previous year Rs. 2,644.94

foreign exchange earnings

No Foreign Exchange Earnings and Expenses during the financial year 2024-25.

business segment

As the Company is dealing only in Guar derivatives and Guar Polymers, therefore, segment- wise detail is not required to incorporate.

internal control systems and their adequacy

The Company is having adequate internal control systems and procedures which are commensurate with the size of the Company. All the departments of the Company are following the established rules and regulations for internal control systems. The company established an Internal Control Audit Department which ensures that the internal control systems are properly followed by all the concerned departments of the Company.

human resources/industrial relations

Beyond Balance Sheet, Companys single biggest asset is its Human Resources. The Company is of firm belief that the human resources are the driving force towards progress and success. The Company continued its policy of attracting and recruiting the best available talents so that it can face business challenges ahead. The Company also offers attractive compensation packages to retain and motivate its professionals so that they can infuse their best efforts. The industrial relationship continues to be cordial during the year.

Though the statement and views expressed in the above-said report are on the basis of certain assumptions and expectations of future events, actual results may differ from whatever is stated in the annual report.

Review

Vikas WSP Limited is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016 as of 02.02.2022. Its affairs, business and assets are being managed by Mr. Darshan Singh Anand, Resolution Professional. The Companys production is suspended since September 2020.

CORPORATE GOVERNANCE REPORT

At Vikas WSP Limited, Corporate Governance is viewed as a commitment backed by a fundamental belief in maximizing its stakeholders value, ensuring transparency and accountability in functioning, and stimulating mutual trust at the very core of its basic character. It is observed not as a discipline imposed by a Regulator, but, as a culture that guides the Board, Management and Employees to conduct business in a manner that exemplifies, enhances and sustains growth in its stakeholders value and meet stakeholders aspirations and societal expectations at all times.

We are committed to make continuous efforts to adopt and adhere to the best practices of Corporate Governance. Corporate Governance is an integral part of the way we do business, which is reinforced at all levels within the Company and emanates from our attempts to constantly improve sustainable value creation for our stakeholders. Our corporate structure, business and disclosure practices have been aligned to our Corporate Governance Philosophy, disclosure of which is set out under different heads of this report:

CIRP

The Company came under CIRP under the provisions of the Insolvency and Bankruptcy Code, 2016 (Insolvency Code) w.e.f. 2nd February 2022 and the powers of the Board were since then vested in and are being exercised by RP under the Supervision of the Committee of Creditors.

The Honble NCLT vide its order dated February 02, 2022 allowed initiation of CIRP of the Company and Mr. Darshan Singh Anand, IP Registration No. IBBI/IPA-002/IP- N00326/2017-18/10931 was appointed as the Interim Resolution Professional ("IRP") for the Company. The appointment of Mr. Mr. Darshan Singh Anand was confirmed/approved as the Resolution Professional ("RP") of the Company by the 02nd Committee of Creditors ("CoC") in its meeting held on 17thMarch, 2022 under the provisions of the Code. As per Section 17 of the Code, from the date of appointment of the IRP the management of affairs and powers of the board of directors of the Company were suspended and are exercised by IRP/RP of the Company.

The Company had received 5 Resolution Plans which were put to vote before the Committee of Creditors ("CoC"). The Committee of Creditors ( CoC ) has approved the resolution plan submitted by M/s Arcbolt Space and Foods Private Limited, with a requisite majority of the voting share as per the Insolvency and Bankruptcy Code, 2016 (IBC) in the 11th Meeting of the Committee of Creditors (COC) held on Thursday 25th August 2022. The application for approval of the Resolution Plan by NCLT under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 was filed on 31.10.2022.

The Resolution Professional (RP) has filed an application with Honble NCLT, Chandigarh Bench for approval of the Resolution Plan of M/s Arcbolt Space and Foods Private Limited, approved by the Committee of Creditors in their 11th CoC Meeting.

As per regulations 15(2A) and 15(2B) of Listing Regulations, regulations 17, 18, 19, 20 and 21 of Listing Regulations which are related to the Board of Directors, Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee and Risk Management Committee respectively, shall not be applicable during the Insolvency Resolution Process period in respect of a listed entity which is undergoing CIRP under the Insolvency Code. Further, the roles and responsibilities of Board of Directors above- mentioned committees as specified in regulations 17, 18, 19, 20 and 21 of the Listing Regulations are fulfilled by RP.