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VIDEOCON INDUSTRIES LIMITED

ANNUAL REPORT 2013

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VIDEOCON INDUSTRIES LIMITED


BOARD OF DIRECTORS

REGISTERED OFFICE
14 K.M. Stone, Aurangabad-Paithan Road,
Village: Chittegaon, Taluka: Paithan,
Dist.: Aurangabad 431 105 (Maharashtra)

Venugopal N. Dhoot

Chairman & Managing Director

S. Padmanabhan

Independent Director

Maj Gen. S. C. N. Jatar

Independent Director

Radhey Shyam Agarwal

Independent Director

MANUFACTURING FACILITIES

Anil G. Joshi

Independent Director

B. Ravindranath

Nominee- IDBI Bank Limited

14 K.M. Stone, Aurangabad-Paithan Road,


Village: Chittegaon, Taluka: Paithan,
Dist.: Aurangabad - 431 105 (Maharashtra)
Village: Chavaj, Via Society Area,
Taluka & Dist.: Bharuch - 392 002 (Gujarat)

AUDITORS
KHANDELWAL JAIN & CO.
Chartered Accountants
12-B, Baldota Bhavan,
117, Maharshi Karve Road,
Opp. Churchgate Railway Station,
Mumbai 400 020
KADAM & CO.
Chartered Accountants
Vedant, 8/9, Viraj Estate,
Opp. Tarakpur Bus Stand,
Ahmednagar- 414 003

COMPANY SECRETARY
Vinod Kumar Bohra

9LJ\DQ1DJDU,QGXVWULDO$UHD2SS5,,&22IFH
Shahjahanpur, Dist.: Alwar - 301 706 (Rajasthan)

BANKERS
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
ICICI Bank Limited
IDBI Bank Limited
IFCI Limited
Indian Bank
Indian Overseas Bank

LIC of India
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
The Federal Bank Limited
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank

CONTENTS
Notice .....................................................................................................................................................
Directors Report.....................................................................................................................................
Corporate Governance Report ..............................................................................................................
Management Discussion and Analysis Report .......................................................................................
Auditors Report .....................................................................................................................................
Balance Sheet ........................................................................................................................................
6WDWHPHQWRI3URWDQG/RVV .................................................................................................................
Cash Flow Statement ............................................................................................................................
Notes forming part of the Financial Statements .....................................................................................
Consolidated Financial Statements ........................................................................................................
Financial Information of Subsidiary Companies ....................................................................................

1
5
14
26
31
34
35
36
37
53
77

NOTICE
NOTICE is hereby given that the Twenty-Fourth Annual General
Meeting of the Members of VIDEOCON INDUSTRIES LIMITED
(the Company) will be held on Saturday, 28th December, 2013
DW WKH 5HJLVWHUHG 2IFH RI WKH &RPSDQ\ DW  . 0 6WRQH
Aurangabad - Paithan Road, Village: Chittegaon, Taluka: Paithan,
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the following business:

law), which the Board be and is hereby authorised to accept,


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Company be and is hereby accorded to the Board to create,
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tranches, whether denominated in Indian rupee or foreign
currency(ies), in the course of international and/or domestic
offering(s) in one or more foreign market(s), for an amount
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through a follow-on public offering (FPO) to eligible investors,
or through Global Depository Receipts (GDRs), American
Depository Receipts (ADRs), Foreign Currency Convertible
Bonds (FCCBs), any other Depository Receipt Mechanism
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Company or the holders thereof) at a later date, any such
instrument or security including Debentures or Bonds or
Foreign Currency Convertible Bonds (FCCBs) being either
with or without detachable warrants attached thereto entitling
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shares (hereinafter collectively referred to as the Securities)
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to be subscribed to in Indian and/or any foreign currency(ies) by
resident or non-resident/foreign investors (whether institutions
and/or incorporated bodies and/or individuals and/or trusts
and/or otherwise)/Foreign Institutional Investors (FIIs)/Mutual
Funds/Pension Funds/ Venture Capital Funds/ Banks and
such other persons or entities, whether or not such investors
are members of the Company, to all or any of them, jointly
or severally through prospectus, offer document and/or other
letter, placement document or circular (Offer Document)
and/or on private placement basis, from time to time in one or
more tranches as may be deemed appropriate by the Board
and such issue and allotment to be made on such occasion
or occasions, at such value or values, at a discount or at a
premium to the market price prevailing at the time of the issue
and in such form and manner and on such terms and conditions
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and/or other Advisors, with authority to retain oversubscription
upto such percentage as may be permitted by the Appropriate
Authorities, with or without voting rights in general meetings/
class meetings, at such price or prices, at such interest or
additional interest, at a discount or at a premium on the market
price or prices and in such form and manner and on such terms
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number of Securities to be issued, face value, rate of interest,
redemption period, manner of redemption, amount of premium
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closure and all other related or incidental matters as the Board
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with the appropriate authority(ies), the Merchant Banker(s) and/
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approval or consent from the shareholders and also subject to
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ORDINARY BUSINESS


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Balance Sheet as at that date together with the Reports of the
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retires by rotation and, being eligible, offers himself for reDSSRLQWPHQW



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Resolution:
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General Meeting of the Company on such remuneration as
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SPECIAL BUSINESS

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the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Section
81(1A) and other applicable provisions, if any, of the Companies
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WKHUHRI  WKH )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW  WKH
Issue of Foreign Currency Convertible Bonds and Ordinary
Shares (Through Depository Receipt Mechanism) Scheme,
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(RBI) and other applicable laws, listing agreements entered
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shares of the Company are listed, Articles of Association
and subject to all other statutory and regulatory approvals,
consents, permissions and/or sanctions of the Government of
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of India (SEBI) and all other concerned authorities (hereinafter
singly or collectively referred to as the Appropriate Authorities)
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Authorities while granting any such approval, consent,
permission and/or sanction and agreed to by the Board of
Directors of the Company (herein after called the Board, which
term shall be deemed to include any committee(s) constituted/
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SRZHUVFRQIHUUHGE\WKLVUHVROXWLRQWRWKHH[WHQWSHUPLWWHGE\

RESOLVED FURTHER THAT the Relevant Date for determining


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the GDRs/ADRs or securities issued on conversion of FCCBs

ANNUAL REPORT 2013


RESOLVED FURTHER THAT the Board be and is hereby
authorised to delegate all or any of the powers herein conferred
by this resolution on it, to any Committee of Directors or any
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in order to give effect to this resolution.

is the date of the meeting in which the Board decides to open


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RESOLVED FURTHER THAT the Board be and is hereby
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Depository(ies), Custodian(s), Trustee, Stabilisation Agent,
Banker/Escrow Banker to the Issue and all such agencies as
may be involved or concerned in such offerings of Securities
and to remunerate all such agencies by way of commission,
brokerage, fees or the like, and also to seek the listing of such
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By order of the Board of Directors of


VIDEOCON INDUSTRIES LIMITED

Place: Mumbai
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VINOD KUMAR BOHRA


COMPANY SECRETARY

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Village: Chittegaon, Taluka: Paithan,
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RESOLVED FURTHER THAT the Board and/or agency or body


authorised by the Board may issue Depository Receipt(s) or
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the Company in registered or bearer form with such features
and attributes as are prevalent in Indian and/or International
Capital Markets for the instruments of this nature and to provide
for the tradability or free transferability thereof, as per the Indian/
International practices and regulations and under the norms
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NOTES


A MEMBER ENTITLED TO ATTEND AND VOTE AT


THE ANNUAL GENERAL MEETING (THE MEETING)
IS ENTITLED TO APPOINT A PROXY/PROXIES TO
ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF/
HERSELF AND THE PROXY NEED NOT BE A MEMBER
OF THE COMPANY. THE INSTRUMENT APPOINTING THE
PROXY SHOULD, HOWEVER, BE DEPOSITED AT THE
REGISTERED OFFICE OF THE COMPANY NOT LESS THAN
FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT
OF THE MEETING. A PERSON CAN BE A PROXY FOR
MEMBERS NOT EXCEEDING 50 (FIFTY) AS PER THE
COMPANIES ACT, 2013.



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statement setting out the material facts concerning special
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forms part of this NRWLFH



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representative(s) to attend and vote on their behalf at the
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Directors of the Company, are liable to retire by rotation at
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area; names of the other public limited companies in which
they hold directorship and membership/chairmanship of
the Committees of the Board of Directors and particulars
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the Meeting, entry to the place of Meeting will be regulated
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RESOLVED FURTHER THAT the Board be and is hereby


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6KDUHV DV PD\ EH UHTXLUHG WR EH LVVXHG DQG DOORWWHG XSRQ
conversion of any securities or as may be necessary in
accordance with the terms of the offering, all such further
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RESOLVED FURTHER THAT VXEMHFW WR WKH H[LVWLQJ ODZ
and regulations, such Securities to be issued, that are not
subscribed, during the currency of the warrants or option or
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Shares or any OFIs, may be disposed of by the Board to
such person(s) and in such manner and on such terms as the
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the Company, including offering or placing them with resident
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or incorporated bodies and/or individuals and/or trusts and/or
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Funds/ Pension Funds/ Venture Capital Funds/ Banks and/or
Employees and Business Associates of the Company or such
other person(s) or entity(ies) or otherwise, whether or not such
investors are members of the Company, as the Board may in its
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RESOLVED FURTHER THAT for the purpose of giving effect
to the above resolutions, the Board be and is hereby authorised
on behalf of the Company to agree to and make and accept
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of the relevant authorities while according approvals, consents
or permissions to the issue as may be considered necessary,
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and things as it may, in its absolute discretion, deem necessary
or desirable for such purpose, including without limitation
the entering into of underwriting, marketing, depository and
custodian arrangements and with power on behalf of the
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arise in regard to any such issue(s)/ offer(s) or allotment(s) or
otherwise and utilization of the issue proceeds and/ or otherwise
to alter or modify the terms of issue, if any, as it may in its
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to seek any further consent or approval of the Company to the
end and intent that the Company shall be deemed to have given
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holder who is higher in the order of names shall be entitled to
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remain closed from Monday, 16th December, 2013 to Saturday,
28th December, 2013 (both days inclusive) for the purpose of
the Meeting and for determining shareholders entitlement for
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declared at the Meeting, will be paid on or around Thursday,
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physical form and whose names appear in the Companys
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regards shares held in the electronic form, the dividend will be
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Company, immediately of change in their residential status
on return to India for permanent settlement together with the
particulars of their Bank Account maintained in India with
complete name, branch, account type, account number and
address of the Bank with Pin Code Number, if not furnished
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in electronic form and your Company has established
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Taking into consideration the enormous advantages offered by
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facility of dematerialization of the Companys shares on either
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Investor Education and Protection Fund (IEPF) established by
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or IEPF in respect of any amounts which were unclaimed and
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became due for payment and no payment shall be made in
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By order of the Board of Directors of
VIDEOCON INDUSTRIES LIMITED

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folios, in identical names or joint accounts in the same order
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Place: Mumbai
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VINOD KUMAR BOHRA


COMPANY SECRETARY

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Village: Chittegaon, Taluka: Paithan,
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to kindly notify any change in their address(es) to the
Company, so as to enable the Company to address future

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any manner whatsoever to persons other than those mentioned in
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A STATEMENT SETTING OUT THE MATERIAL FACTS PURSUANT


TO SECTION 102 OF THE COMPANIES ACT, 2013

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The Company is evaluating different proposals to mobilize the
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By order of the Board of Directors of
VIDEOCON INDUSTRIES LIMITED

Place: Mumbai
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COMPANY SECRETARY

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of a Public Company proposing to increase its subscribed capital
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ANNUAL REPORT 2013


BRIEF PROFILE OF THE DIRECTORS SEEKING RE-APPOINTMENT AT THE ENSUING ANNUAL GENERAL MEETING
(PURSUANT TO CLAUSE 49 OF THE LISTING AGREEMENT WITH THE STOCK EXCHANGES IN INDIA)
Sr. No.

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Cambridge,
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Director of Indian Bank and retired as the Chairman
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Chairman
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DIRECTORS REPORT
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gas sector in pursuance to its corporate objective and strategy to
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wholly owned subsidiaries and/or joint ventures during the period
under review have further added to the hydrocarbon resources
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Dear Shareholders,
Your Directors take pleasure in presenting the Twenty-Fourth
Annual Report together with the Audited Accounts and Auditors
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PERFORMANCE REVIEW
The performance of the Company, on standalone basis, for the
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BRAZIL
During the period under review, Petroleo Brasileiro SA, the Operator
for Sergipe, Espirito Santos and Potiguar concessions, announced
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joint venture of the Company, through its wholly owned subsidiary
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(` in Million)
Period Ended
30th June, 2013
(18 months)

Year Ended 31st


December, 2011
(12 months)

181,572.75



4,182.66



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Finance Costs

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during drilling of well 1-BRSA-1083-SES (1-SES-167) informally
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km from the city of Aracaju, located in ultra deep waters of Sergipe
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saturated with light hydrocarbons in the Maastrichtian and
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months as against 12 months in the previous year and hence, are
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OPERATIONS
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The period was a very tough period marked by challenges in both
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performance of the Company was affected due to economic
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through thick and thin, the Company was able to deliver a stable
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in ultra deep waters of the Sergipe-Alagoas basin offshore was
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the Company for the period do not include any revenue in respect
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Brazilian subsidiary, is acting as the Operator, drilled in the
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ANNUAL REPORT 2013


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Supreme Court directed that the licensees whose licenses had
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February 2013, whereby it was directed that the licensees have to
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of the Camarao well, encountered 777 total net feet (237 meters) of
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per day (MMcf/d), with minimal pressure drawdown, providing
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discovered a new, major natural gas accumulation nearly 20 miles
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General Insurance Company from the Insurance Regulatory and
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Venture Company has launched the Non-/ife Insurance business in
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x Mutual utilization of energy among adjacent factories and


workplaces/inter-industry collaboration;
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DIVIDEND

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Your Directors are pleased to recommend a dividend of ` 2/- (Rupees


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x Installation of astronomical digital timers, occupancy sensors for


better lighting control;

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Your Directors recommend 8% dividend on the preference shares


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x Rain water harvesting to reduce water consumption at factory;

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units;

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x Introduction of additional machinery with improved technology


which results in reducing the cycle time and power saving;

TRANSFER TO RESERVES
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x Increased awareness among the employees through visual


management;

TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND

x Conducting energy saving training sessions;

The Company has transferred a sum of `0LOOLRQLQUHVSHFW


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tools and converted continuous power to intermittent power
consumption; and

ISSUES/ALLOTMENT

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systems to monitor usage, minimize wastage and increase
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During the period under review, the Company has allotted


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The adoption of the above energy conservation measures have


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FIXED DEPOSITS

During the period under review:

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such, no amount of principal or interest was outstanding as on the
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x Your Company was conferred with the prestigious National


Energy Conservation Award for 2011 by the Bureau of Energy
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PERSONNEL

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sector for strict adherence to the BEE standards set up by the
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ANNUAL REPORT 2013


x Your Company has set a platform for Internet TV based
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advancement completes the need of today with digital signal
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RESEARCH & DEVELOPMENT AND


TECHNOLOGY ABSORPTION
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into production, new methods of producing goods and services, or
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integrated module is a revolutionary product which has more
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designed audio system BOOM BOX adds much value to this
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Research aims to generate knowledge in the hope that it will help


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to a business, the new higher value-added products, processes
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sophisticated look with advance TV algorithms for vivid picture
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industries and offer their customers new or improved products,
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In order to compete with the ever changing market and to fetch the
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Your Company has launched number of products in Consumer


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and could result in developments such as:

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x Improved operational process;


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x Cost reduction;
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x Introduced various Air Conditioners with various features viz, auto


clean function, introduction of PFC or MC condenser, Vita Air
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x Development and production of Digital Direct Broadcast (DDB)


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x Increase in the market share and enhance the Brand Value; and
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During the period under review, the Company has incurred `
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HEALTH & SAFETY


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is in place to ensure the safety of employees, workforce as well as
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your Company for building healthy work culture are:

x Night Manager concept for vigilance of the overall campus; and


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ENVIRONMENTAL PROTECTION
Environmental protection is an increasingly vital issue all over the
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Company believes that it is the responsibility of the Company to
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x Recognition of its human capital by opting for life insurance


cover, medical and other welfare covers for the employees that
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those of health, disability, accident etc;

Your Company is committed to Green Initiative wherein it has


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x Provision of health and medical services to all the employees
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manufacturing plants;

Your Company continues to strive to address matters related to


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x Preparation of manual, codes and guides relating to prevention,


control or abatement of environmental pollution;

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various hazards at workplace;

x Collection and dissemination of information among employees


in respect of matters relating to environmental pollution;

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its employees;

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the optimum utilization of natural resources;

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awareness among the employees for hygiene and cleanliness;
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work stations for information and awareness of employees;

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substances and replacement thereof, if any, that are likely to
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guards;

x Emission of pollution as per the standards prescribed by Central


Pollution Control Board (CPCB);

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department;

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awareness among the employees;

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reach safe assembly points in case of emergency;

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environment;

x Provision of such information, instruction, training and


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x Arrangements at manufacturing plants for ensuring safety and


absence of risks to health in connection with the use, handling,
storage and transport of articles and substances;

x Organizing various events and seminars for environmental


awareness; and

x Provision and maintenance of effective drainage system;


x Effective and suitable provision in every workroom for securing
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air;

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initiative to spread awareness regarding e-waste management
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at all times;

ANNUAL REPORT 2013


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Your Company conducts its business in a sustainable and socially
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has put in place the strategy including CSR priorities and actions
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FOREIGN EXCHANGE EARNINGS AND OUTGO


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Period ended
30th June, 2013
(18 months)

Year ended
31st December, 2011
(12 months)

9,851.76



26,193.13



Your Company ensures to remain in a constant dialogue with


customers, suppliers and other parties which enable the Company
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INFORMATION TECHNOLOGY
Your Company continues to invest in Information Technology (IT)
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APPOINTMENT AND RE-APPOINTMENT OF DIRECTORS


During the period under revieZ 0U .DUXQ &KDQGUD 6ULYDVWDYD
Director of the Company resigned from the Board of the Company
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A good IT infrastructure in the Company is absolutely necessary


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The Board places its sincere appreciation towards the valued


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CORPORATE SOCIAL RESPONSIBILITY


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human resource department and corporate social responsibility are
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SUBSIDIARY COMPANIES

CASH FLOW STATEMENT

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Statutory Auditors of the Company, retire at the conclusion of
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re-appointment, if made, would be within the limits prescribed under
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AUDITORS REPORT
The Statutory Auditors of the Company have submitted Auditors
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Consolidated Financial Statements for the period ended on 30th
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Ministry of Corporate Affairs, Government of India, vide its General


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the Annual Accounts and other documents of the subsidiary
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Directors have accorded their consent for not attaching the Balance
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statements of the Company and all subsidiaries duly audited by
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compliance with applicable Accounting Standards and where
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Standalone Financial Statement for the period ended 30th
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made in and advances given to Videocon Telecommunications
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is as under:
The Company has, directly and through its subsidiaries, made
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advances of `0LOOLRQWR9LGHRFRQ7HOHFRPPXQLFDWLRQV
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the Department of Telecommunications, Government of India
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of spectrum to these licensees, which also include the 21
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Telecom Regulatory Authority of India (TRAI) to make fresh
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spectrum and the Central Government to grant fresh licenses
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Further, the following information in aggregate for each subsidiary


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consolidated balance sheet:(a) capital (b) reserves (c) total assets (d) total liabilities (e)
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The Company undertakes that the Annual Accounts of the subsidiary
companies and the related detailed information of the subsidiary
companies shall be made available to the shareholders of the
holding and subsidiary companies seeking such information at any
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shall also be kept open for inspection by any shareholder at the
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The Central Government conducted the auction of spectrum


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been declared as a successful bidder in 6 circles and has
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losses, its ability to continue as going concern is dependent on
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of mobilizing necessary resources for continuing its operations
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CONSOLIDATED FINANCIAL STATEMENTS


The Audited Consolidated Financial Statements, based on the
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and joint ventures, as approved by their respective Board of
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of Accounting Standard 21 on Consolidated Financial Statements,
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11

ANNUAL REPORT 2013


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Financial Statement regarding the recognisation of Deferred
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management is as under:

CORPORATE GOVERNANCE
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of the Corporate Governance is appended to the Report on
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which are valid for a period of 20 years and also been allotted
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virtual certainty, based on the future business plan, estimated
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capital infusion into the Company which would restrict further
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the unabsorbed depreciation and business losVHV

DIRECTORS RESPONSIBILITY STATEMENT


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with respect to Directors Responsibility Statement, it is hereby
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in the preparation of the Annual Accounts for the period ended


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from the same;

b)

the Directors have selected such accounting policies and


applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair
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2013 and of the loss of the Company for the period ended on
that date;

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safeguarding the assets of the Company and for preventing
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the Directors have prepared the annual accounts of the


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COST AUDITOR
The Central Government has directed, vide various Orders to
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The Board has accorded its approval for the re-appointment of
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Pune, having Membership Number 7836, as the Cost Auditor of
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In accordance with the provisions of The Companies (Cost Audit
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by Government of India, Ministry of Corporate Affairs, we hereby
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ACKNOWLEDGEMENT
The Board of Directors would like to thank the Customers, Vendors,
Investors, Financial Institutions, Bankers, Business Partners and
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Directors also appreciate the contribution made by the employees
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The Board of Directors would also like to thank all stakeholders


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AUDIT COMMITTEE
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powers of the Audit Committee together with details of meetings
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For and on Behalf of the Board of Directors of


VIDEOCON INDUSTRIES LIMITED

VENUGOPAL N. DHOOT

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

CHAIRMAN & MANAGING DIRECTOR

Management Discussion and Analysis Report, highlighting the


performance and prospects of the Companys business, forms part
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ANNEXURE TO DIRECTORS REPORT


STATEMENT OF PARTICULARS OF EMPLOYEES PURSUANT TO PROVISIONS OF SECTION 217(2A) OF THE COMPANIES ACT,1956,
READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES,1975 AS AMENDED AND FORMING PART TO THE DIRECTORS
REPORT FOR THE PERIOD ENDED 30TH JUNE, 2013
Name of Employee

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Vice President

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13

ANNUAL REPORT 2013

CORPORATE GOVERNANCE REPORT


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COMPANYS PHILOSOPHY ON CODE OF GOVERNANCE

Board of
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Effective Corporate Governance is the key element ensuring


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practicing Code of Corporate Governance that provides a structure
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Corporate Governance is not merely compliance; it is something


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Your Companys philosophy on Corporate Governance sets the
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in all its dealing with the shareholders, employees, the government
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The Companys philosophy on Corporate Governance is based on:

The primary responsibility of the Board is to evaluate the


strategic decisions of the Company, management policies and
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and procedures for meetings of the Board of Directors and
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Accountability

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The Company Secretary of the Company circulates the agenda


of the meeting along with all the supporting documents to all the
directors entitled to receive the same, to facilitate meaningful
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a) Minutes of the proceedings of each Board/Committee/


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are circulated amongst all members for their feedback/
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the Corporate Governance is appended to the Report on Corporate
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generally provided to the Members inter-alia includes:
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operating divisions or business segments;

BOARD OF DIRECTORS

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Committees of the Board;

The Board consists of eminent persons with considerable


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prosecution notices and penalty notices, if any and
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The Board of Directors of the Company comprises of
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Directors hold chairmanship on the Board of any other Public
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assets, which are not in the normal course of business;
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segments etc;

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in following manner:

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14

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liability claims of substantial nature; and

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any;

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c) The guidelines for the Board/Committee meetings facilitate


an effective post meeting follow-up, review and reporting
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Company Secretary;
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2.

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Company, or substantial non-payment for goods sold by
the Company;

The Board has laid down a Code of Conduct for all directors and
senior management of the Company, which has been posted
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and Industrial Relations;
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the steps taken by the management to limit the risks of
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payment of dividend, delay in share transfer etc;


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Name of the Director

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Attendance at
the AGM held
on 29.06.2012

Directorship**

No
No

Attendance at the
Board Meetings held
GXULQJWKHQDQFLDO
period
Total Meetings
Attended+
8
0

Other Board@

Yes
No
No
Yes
No
No


8

Committee
Chairmanship#
0
0

Committee
Membership#
2
2


2

8

1$


10
0
8



2
0
0
1
3
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0
6
3
1

No

1$

No

No

1$

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 'LUHFWRUVKLSVKHOGE\GLUHFWRUVGRQRWLQFOXGHDQ\DOWHUQDWHGLUHFWRUVKLSVGLUHFWRUVKLSVLQ)RUHLJQ&RPSDQLHVGLUHFWRUVKLSVLQ
&RPSDQLHVLQFRUSRUDWHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FWDQG3ULYDWH/LPLWHG&RPSDQLHV
 $VSHU&ODXVHRIWKH/LVWLQJ$JUHHPHQW0HPEHUVKLSV&KDLUPDQVKLSVRIRQO\$XGLW&RPPLWWHHDQG6KDUHKROGHUV,QYHVWRUV
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15

ANNUAL REPORT 2013


The Statutory Auditors, CosW$XGLWRUVDQGWKH+HDGRI,QWHUQDO
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The Company Secretary is the de-facto Secretary of the
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re-appointment is appended to the Notice convening the
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The following are the terms of reference and scope of the Audit
Committee:

COMMITTEES OF THE BOARD OF DIRECTORS


The Board of Directors of the Company have set up Committees
to carry out various functions, as entrusted, and give the suitable
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WRWLPH
Audit
Committee

Mandatory
Committees

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Recommending to the Board the appointment, reDSSRLQWPHQWDQGLIUHTXLUHGWKHUHSODFHPHQWRUUHPRYDO


RI WKH VWDWXWRU\ DXGLWRUV DQG [DWLRQ RI WKH DXGLW IHH
and also approval for payment for any other services
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statements before submission to the Board for approval,
focusing primarily on:

Shareholders/
Investors Grievance
Committee

Committees of
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Directors

Remuneration
Committee
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Affairs Committee

Non-Mandatory
Committees

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Responsibility Statement to be included in the
Boards Report in terms of Clause (2AA) of Section
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Rights Issue
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Re-Organization
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The composition, scope and details of all the aforesaid Committees


are given as under:
1.

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the Company of material nature, with promoters or
WKHPDQDJHPHQWWKHLUVXEVLGLDULHVRUUHODWLYHVHWF
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The Committee comprises of Independent Directors who are
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Designation
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Member
Member

Category
Independent
Independent
Independent

After the Balancesheet date, the Audit Committee was


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Radhey Shyam Agarwal was elected as the Chairman of the
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Reviewing, with the management, the statement of


utilization/application of funds raised through an issue
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statement of funds utilized for purposes other than those
stated in the offer document/prospectus/notice and the
report submitted by the monitoring agency monitoring
the utilization of proceeds of a public or rights issue and
making appropriate recommendations to the Board to
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Reviewing, with the management, the performance of


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including the structure of the internal audit department,
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Meetings Attended*
6
7
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16

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by the internal auditors into matters where there is a
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control systems of a material nature and reporting the
matter to the BRDUG

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Discussion with statutory auditors before the


commencement of audit, on nature and scope of audit
as well as post-audit discussion to ascertain any area of
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ceased to be a member of Shareholders/ Investors Grievance
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member of Shareholders/ Investors Grievance Committee in
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Assessing the reasons for substantial defaults, if any,


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Financial Statements
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function or discharging that function) after assessing the
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and

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by

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DEURDG

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The Shareholders/Investors Grievance Committee plays an
important role in acting as a link between the management
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The Committee has delegated the power of Share Transfer


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investors grievances and performance of the Registrar and
Share Transfer Agent of the Company and recommends
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Transfer of shares;

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Transmission of shares;

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Change of Status;

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Transposition of shares;

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Sub-division of shares;

SHAREHOLDERS/ INVESTORS GRIEVANCE


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Issue and Allotment of securities;

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shares; and

x

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2.

Meetings Attended*

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was as under:
Name
0DM*HQ6&1-DWDU
0U63DGPDQDEKDQ
0U5DGKH\6K\DP
Agarwal

Designation
Chairman
Member
Member

Category
Independent
Independent
Independent

The Committee also closely monitors compliance of the code


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17

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ZKRSURFHVVHVWKHWUDQVIHUV

ANNUAL REPORT 2013




6KDUH7UDQVIHU'HWDLOV

x

Determining the remuneration policy of the Company;

The number of Shares transferred during the period under


review:

x

5HFRPPHQGLQJWRWKH%RDUGUHWLUHPHQWEHQHWV

x

Reviewing the performance of employees and their


compensation; and

x

Attending to any other responsibility as may be entrusted


E\WKH%RDUG

Sr. No.
a)
b)
c)

Particulars
Number of Transfers
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Number of Shares Transferred

Equity




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([HFXWLYH 1RQ,QGHSHQGHQW 'LUHFWRUV DUH QRW SDLG
DQ\ VLWWLQJ IHHV 0U 9HQXJRSDO 1 'KRRW &KDLUPDQ
DQG 0DQDJLQJ 'LUHFWRU DQG 0U 3UDGLSNXPDU 1 'KRRW
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2012) are entitled for remuneration as per their terms
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Sr. No. Particulars


Equity
a)
1XPEHURI'HPDW5HTXHVWVDSSURYHG
2,708
b)
Number of Sub-committee Meetings

held
c)
Number of Shares Dematerialized

d)
Percentage of Shares Dematerialized

e)
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approved
f)
Number of Shares Rematerialized


(b)

Details of complaints received and redressed during the


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The Independent Directors are paid only sitting fees for


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payment of sitting fee during the period under review are
as follows:
Sr.
No.

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FRPSODLQWV  ZHUH UHGUHVVHG WR WKH VDWLVIDFWLRQ RI WKH
VKDUHKROGHUV +RZHYHU WKHUH DUH  SHQGLQJ FRPSODLQWV
(considering 3 complaints of previous year which were interim
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0U637DOZDU

300,000



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620,000



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180,000



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100,000



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Nil

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Name

Designation

Category

Chairman

Independent

0U637DOZDU

Member

Independent

0U5DGKH\6K\DP$JDUZDO

Member

Independent

0DM*HQ6&1-DWDU

After the Balancesheet date, the Remuneration Committee


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The Company Secretary is the de-facto Secretary of the
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x

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package of key management personnel;

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4.

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Category

Chairman

Promoter([HFXWLYH

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Member

Independent

0U5DGKH\6K\DP
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Member

Independent

During the period under review, there was a change in the


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ceased to be a member of the Finance And General Affairs
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member of Finance And General Affairs Committee in place of
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The terms of reference and scope of the Committee are


represented below:
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x



Name

Meetings Attended
1
1
1

Sitting
Fees (Rs.)



The Board of Directors has set up a Remuneration Committee


to review the amount to be paid as remuneration to the
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Name of the Director

The Company Secretary is the de-facto Secretary of the


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18

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Name

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The said Committee was formed to re-organize and
segregate various business segments of the Company with
a view to ensure greater focus to the operation of each of its
diverse businesses, enhanced value for shareholders and
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said Committee have the powers to engage and appoint legal,
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the above said matter and do all such acts, deeds and things,
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Meetings Attended

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36

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MEANS OF COMMUNICATION

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The Committee is entrusted with various powers from time
to time, which shall aid in speedy implementation of various
projects, activities and transaction whether routine or nonURXWLQHLQQDWXUH



5,*+76,668(&200,77((

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Name

Designation

Category

Chairman

Promoter([HFXWLYH

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Member

Independent

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Member

Independent

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Member

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Name

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limited reviewedWRWKH6WRFN([FKDQJHVDVVRRQDVWKHVDPHDUH
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WKH)LQDQFLDO([SUHVVDQG/RNVDWWD(QJOLVKDQG0DUDWKLODQJXDJH
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LQGLYLGXDOO\WRWKHVKDUHKROGHUV
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ZLWKWKH6WRFN([FKDQJHVLQ,QGLDWKHXQDXGLWHGQDQFLDOUHVXOWV
DV ZHOO DV DXGLWHG QDQFLDO UHVXOWV VKDUHKROGLQJ SDWWHUQ RI WKH
Company and Corporate Governance Report are electronically
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WKURXJK &RUSRUDWH )LOLQJ DQG 'LVVHPLQDWLRQ 6\VWHP YL] ZZZ
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shareholding pattern of the Company and Corporate Governance
Report are displayed on NEAPS (NSE Electronic Application
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Reports/ Research Report, if any, are also uploaded on the website
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Meetings Attended

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Management Discussion and Analysis Report forms part of the


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GENERAL BODY MEETING

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The details of the last three Annual General Meetings (AGMs) of the
Company are as under:

The Rights Issue Committee is entrusted with various


powers and authorities, from time to time to aid in speedy
implementation of all the formalities in relation to Rights Issue
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Designation
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Member
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AGM

Category
Promoter([HFXWLYH
Independent
Independent

After the Balancesheet date, the Re-organisation Committee


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Meeting and attendance

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UHYLHZ$OOWKHPHPEHUVDWWHQGHGWKHPHHWLQJ

19

Date

Location

Time

Special
Resolution
Passed

21st

30th
.06WRQH
March, $XUDQJDEDG3DLWKDQ5RDG
2010
Village: Chittegaon,
Taluka: Paithan, District:
$XUDQJDEDG


Noon

1,/

22nd

WK
-XQH
2011

.06WRQH
$XUDQJDEDG3DLWKDQ5RDG
Village: Chittegaon, Taluka:
Paithan, District:
$XUDQJDEDG


Noon

1 (One)

23rd

WK
-XQH
2012

.06WRQH
$XUDQJDEDG3DLWKDQ5RDG
Village: Chittegaon, Taluka:
Paithan, District:
$XUDQJDEDG


Noon

1,/

ANNUAL REPORT 2013


POSTAL BALLOT
'XULQJWKHQDQFLDOSHULRGXQGHUUHYLHZIRXUUHVROXWLRQVZHUHSDVVHGWKURXJK3RVWDO%DOORWSDUWLFXODUVRIZKLFKDUHVHWRXWKHUHXQGHU
Resolution
No.

Particulars of the Resolution Passed

Section of the Companies


Act, 1956, under which the
resolution passed

Nature of
Resolution



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VHFXULW\PDNHLQWHUFRUSRUDWHORDQVXSWRDQDPRXQWQRWH[FHHGLQJ`&URUHV

Section 372A

Special



Authorised the Board of Directors of the Company to borrow money/moneys upto an


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Ordinary



Authorised the Board of Directors to sell, lease, mortgage, or otherwise dispose off
the whole or substantially the whole of undertaking of the Company upto an amount
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Ordinary



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DQDSSURSULDWHWLPHE\ZD\RI)ROORZRQ,VVXH3ULYDWH3ODFHPHQWEDVLV4XDOLHG
Institutional Placement basis, American Depository Receipts (ADRs), Global
Depository Receipts (GDRs), Foreign Currency Convertible Bonds (FCCBs) or any
RWKHUPRGHRUPHFKDQLVP

Section 81(1A)

Special

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Ballot Form and self-addressed envelope, postage paid by the Company were dispatched to all the shareholders of the Company and all other
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VOTING PATTERN
1

Total No. Total No. of


of Valid
Shares
PBF
Received/
E-Voting
Excluding
Rejected

4
% of
Shares
to Total
Equity

Total No.
% of Shares Total No.
% of
of Votes
to Total No
of Votes
Shares to
Casted In
of Valid
Casted
Total No.
Favour of the
Shares
Against the of Valid
Resolution
Polled
Resolution
Shares
through
Polled
PBF/Ethrough
Voting
PBF/EVoting

10

Short 5HPDUNV
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and
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from
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No. of
Shares

Item
No.

Particulars

Special Resolution under Section 372A of the


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provide security, make inter-corporate loans upto an
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3,387 







2,630,163





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of Directors to sell, lease, mortgage, or otherwise
dispose off the whole or substantially the whole of
undertaking of the Company upto an amount not
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3,387 













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Directors of the Company to borrow money/moneys
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3,387 







2,631,386





Special resolution under Section 81(1A) of the


&RPSDQLHV $FW  DXWKRUL]LQJ WKH %RDUG RI
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or any other convertible instruments for an amount
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by way of Follow on Issue, Private Placement basis
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Depository Receipts (ADRs), Global Depository
Receipts (GDRs), Foreign Currency Convertible
Bonds (FCCBs) or any other mode or mechanism,
subject to necessary approval and consent

3,387 













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20

DISCLOSURES
D 

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WUDQVDFWLRQV LH WKH WUDQVDFWLRQV RI 7UDQVDFWLRQVZLWKUHODWHGSDUWLHVDUHGLVFORVHGLQ1RWH1RDQGRIVWDQGDORQHQDQFLDOVWDWHPHQW V RI
the Company of material nature with WKH$QQXDO5HSRUW
its promoters, directors/management,
VXEVLGLDULHVUHODWLYHV HWF WKDW PD\
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RIWKH&RPSDQ\DWODUJH

b)

Non-compliance by the Company,


penalties and strictures imposed on the
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or any statutory authority, on any matter
related to capital markets, during the
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%RDUGRI,QGLD$FWUHDGZLWKVHFWLRQ$RIWKH6HFXULWLHV&RQWUDFWV 5HJXODWLRQ $FWLQUHODWLRQ
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YDULRXVFRPSDQLHVDQGWKHLUSURPRWHUVGLUHFWRUVLQFOXGLQJ9LGHRFRQ,QGXVWULHV/LPLWHG WKH&RPSDQ\ DQG
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DORQJ ZLWK LWV SURPRWHUV DQG GLUHFWRUV KDG OHG LWV UHSO\ VXEPLWWLQJ WKDW WKH &RPSDQ\ ZDV FRPSOLDQW ZLWK
WKH 036 QRUPV WLOO 0DUFK   7KH SURPRWHUVSURPRWHU JURXS RI WKH &RPSDQ\ DFTXLUHG 
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VKDUHKROGLQJRIWKH&RPSDQ\IHOOEHORZ7KHDFTXLVLWLRQKDVEHHQPDGHE\WKHSURPRWHUVSURPRWHU
group of the Company due to an understanding that the computation of promoter holding is with reference to
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IHOOEHORZRQ0DUFKXQGHU5XOH$  WKH&RPSDQ\LVXQGHUREOLJDWLRQWREULQJEDFNWKH
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RIWKH&RPSDQ\SRVW2)6VWRRGDWDQGWKHSXEOLFVKDUHKROGLQJVWRRGDW7KH&RPSDQ\OHG
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that no personnel have been denied GHQLHGDFFHVVWRWKH$XGLW&RPPLWWHH
access to the Audit Committee

d)

Details of Compliance with mandatory The Company has:


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of the Companys Code of Conduct or complaints regarding accounting, auditing, internal controls or
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GENERAL SHAREHOLDER INFORMATION




$118$/*(1(5$/0((7,1*
The Twenty-Fourth Annual General Meeting of the Company
will be held as per the following schedule:
Day
Date
Time
Venue

Saturday
28th December, 2013
DP
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(Maharashtra)

2.

FINANCIAL CALENDER FOR THE YEAR ENDED 30TH


-81(

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Financial Year
First Quarterly
Results
Second Quarterly
Results

3.

Financial Year

1st July, 2013 to 30th June, 2014

Third Quarterly
Results

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Fourth Quarterly
Results

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Annual General
Meeting for year
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2QRUEHIRUHVW'HFHPEHU

DATE OF BO2.&/2685(
The date of Book Closure for the purpose of Annual General
Meeting and determining the shareholders entitlement for
dividend shall be from Monday, 16th December, 2013 to
6DWXUGD\WK'HFHPEHU ERWKGD\VLQFOXVLYH 

1st July, 2013 to 30th June, 2014


2QRUEHIRUHWK1RYHPEHU
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21

4.

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Meeting, is proposed to be paid on or around Thursday, 2nd
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ANNUAL REPORT 2013


5.

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March-12
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September-12
October-12
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December-12
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22

 ',675,%87,212)6+$5(+2/',1*
$  6KDUHKROGLQJ3DWWHUQDVRQWK-XQH
Category Category of Shareholder
Code
(A)
(1)
(2)
(B)
(1)
(2)

(C)
(1)
(2)

Number of Total Number


As a
Shareholders
of Shares
percentage of
(A + B)

Shareholding of Promoter and Promoter


Group
Indian
Foreign
Sub-Total (A)
Public Shareholding
Institutions
Non-Institutions
-Bodies Corporate
-Individuals
-Others
Sub-Total (B)
TOTAL (A) + (B)
Shares held by Custodians and against
which depository Receipt have been issued
Promoter and Promoter Group
Public
Sub-total (C)
GRAND TOTAL (A) + (B) + (C)

As a
percentage of
(A+B+C)


45


221,188,414


75.56


69.39

163







2,076
318,131

321,355
321,400




71,532,029
292,720,443




24.44
100.00




22.44
91.83

2
2
321,402


26,051,226
*318,771,669


8.17
100.00

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%  'LVWULEXWLRQRI6KDUHKROGLQJDVRQWK-XQH
Shareholding of
Nominal Value
8SWR
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10,001 to 20,000
20,001 to 30,000
WR
WR
WR
1,00,001 and above
Total

Number of
% to the total number of No. of Shares
Shareholders
shareholders


6,218,087


1,111,333
660


237


113











321,402
100.00
318,771,669

Amount in `
62,180,870
11,113,330






3,187,716,690

% to Total value
of Capital








100.00

8.

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9.

OUTSTANDING GDRs/ ADRs/WARRANTS OR CONVERSION INSTRUMENTS, CONVERSION DATE AND LIKELY IMPACT ON
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Principal Value of the FCCBs issued
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23

FCCB of US$ 200 Million (due


on 16th December, 2015)
86
86

86


ANNUAL REPORT 2013


The Correspondence address for shareholders in respect of
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11. REGIST5$5$1'6+$5(75$16)(5$*(17







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Shares received for transfer by the Company or its Registrar


and Share Transfer Agent in physical mode are processed and
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to notify / send the following information to the Registrar and
Share Transfer Agent of the Company:
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Any change in their address/mandate/bank details etc;


and

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Particulars of the bank account in which they wish their


dividend to be credited (in case the same has not been
furnished earlier); and should include the following
particulars namely, Bank Name, Branch Name, Account
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The Company has manufacturing facilities at the following


locations:


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Village: Chittegaon, Taluka: Paithan,
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the submission of Permanent Account Number (PAN) by every
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to the Depository Participants with whom they are maintaining
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form can submit their PAN details to the Company/ Registrar
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Shareholders holding shares in physical form and desirous of
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in the Company may submit Form 2B (in duplicate) as per the
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DECLARATION
The Board has laid down a code of conduct for all the Board Members and Senior Management of the Company, which is posted on the
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For VIDEOCON INDUSTRIES LIMITED
CHAIRMAN & MANAGING DIRECTOR
Place : Mumbai
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24

CMD/CFO CERTIFICATION
To,
The Board of Directors,
VIDEOCON INDUSTRIES LIMITED
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certify to the Board that:
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best of our knowledge and belief:
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be misleading; and

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To the best of our knowledge and belief, no transactions entered into by the Company during the period are fraudulent, illegal or
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For VIDEOCON INDUSTRIES LIMITED


CHIEF FINANCIAL OFFICER

CHAIRMAN & MANAGING DIRECTOR

Place : Mumbai
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COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE


To,
The Members of
VIDEOCON INDUSTRIES LIMITED
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of the procedures and implementations thereof adopted by the Company for ensuring the compliance of conditions of Corporate
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Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated
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For KHANDELWAL JAIN & CO.
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Place : Mumbai
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25

ANNUAL REPORT 2013

MANAGEMENT DISCUSSION AND ANALYSIS REPORT


The management discussion and analysis report has been included
in adherence to the spirit enunciated in the code of Corporate
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impact in all walks of life because it is the most popular way of
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The Management Discussion and Analysis presented in this Annual


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statements have been made on a prudent and reasonable basis,
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form and substance of transactions, and reasonably present our
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Televisions continue to be the mainstay of the Consumer Electronics


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Some of the eye catching features of televisions are:

CONSUMER ELECTRONICS INDUSTRY


The global consumer electronics industry remains steady despite
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been eager to purchase new technologies, older consumers are
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continue to strengthen their importance as consumers in these
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But underlying this growth is a competitive environment best
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increasingly multi-function devices, and compelled by consumer
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Fully Integrated Digital TV: There is a shift from analogue


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ensures high system performance with greater operation
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processing which leads to high depth in picture, true colour
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noise reduction capability that eliminates the blur caused by
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also has colour compensation / correction processing with
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Faroudja audio optimization has algorithms for noise reduction
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675$7$ &HUWLHG$XGLRSTRATA produces loud and clear


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The consumer electronics market is in a rapid evolution phase and


the manufacturers are under tremendous competitive pressure to
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ahead of the competition, the manufacturers have set the ball rolling
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industry will gain some relief as the economic environment becomes
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CONSUMER ELECTRONICS SEGMENT - VIDEOCON
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is into the business of manufacturing, assembling and distributing a
comprehensive range of consumer electronics, products and home
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of power generation, oil and gas business, telecom sector and
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The Company tries to reach out to all classes of customers by


launching innovative products right from affordable to premium and
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innovative products and technologies to cater to our ever evolving
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by an increase in the disposable incomes, changing tastes
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products and introduction of compact versions of the product to
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In the era of refrigeration, technology is evolving at a staggering


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at the time of purchase for the home maker and when in use,
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range of consumer electronics products and home appliances as
follows-

Televisions

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Air
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features, more claims and even more doors as the Company
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Microwave
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tailor-made features, the Company has introduced masterpiece


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up from only reheating and baking, many advanced models of
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research and development activity to create a technology for
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Over the years, the technological growth led to the advancement in


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Company has come up with variety of models which are virtually
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cook menus of microwave ovens have pre-programmed cooking
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features that provide easy cleaQLQJDQGHQVXUHVDIHW\IRUFKLOGUHQ

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OIL AND GAS INDUSTRY

The washing machine market is seeing an upsurge in terms of


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nuclear families, growth in working women and youth and peoples
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having utility features which utilizes less power, water and detergent
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is committed to accelerate the growth momentum in the years to
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and effective recovery, a more rational and optimally balanced
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The shift of the users from semi-automatic to fully automatic


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designed to deliver smart cleaning, smart rinsing and drying along
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Products which enhances lifestyle and comfort living have gained
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position in residential and commercial establishments and have
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only remained for comfort but also became a fashion statement and
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a promising one as there is a huge untapped potential basin while
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OIL AND GAS SEGMENT- VIDEOCON
The Company has marked its presence in the oil and gas section
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The desire for a comfortable environment creation has led to increase


in the technological advancement in the Air Condition industry with
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air, low noise, ozone friendly technology coupled with trendy looks
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aforesaid aspects, your Company has introduced air conditioners
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pure air while ensuring smarWVDYLQJV

27

Ravva Oil
*DV


Oil and Gas


Blocks

BM POT16- Potiguar

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Santosh

BM-C-30
Campos

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11-Sergipe

ANNUAL REPORT 2013


 'XULQJ WKH SHULRG XQGHU UHYLHZ WKH ZKROO\ RZQHG 0DXULWLXV
EDVHG VXEVLGLDU\ QDPHG 9LGHRFRQ 0DXULWLXV (QHUJ\ /LPLWHG
KDVRQWK-XQHH[HFXWHGDW6LQJDSRUHD6KDUH6DOH 
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/LPLWHG IRU VDOH RI LWV  VWDNH LQ 9LGHRFRQ 0R]DPELTXH
5RYXPD  /LPLWHG 905/  IRU D FRQVLGHUDWLRQ RI 86 
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$UHD%ORFNLQ5RYXPD%DVLQLQ0R]DPELTXHZKLFKKDVVHULHV
RIVL]DEOHQDWXUDOJDVGLVFRYHULHV

x Support from the Government- Favourable judiciary policies


DOVRFRQWULEXWHIRURXULVKLQJRIDQLQGXVWU\
x ,QXHQFH RI ZHVWHUQ FRXQWULHV Due to westernisation and
easy availability of products the consumers are relying on home
DSSOLDQFHV
x Technological advancement- Production of user friendly and
technologically upgraded devices make such home appliances
DQHHGRIWKHGD\DQGQRWOX[XU\

 7KHRLODQGJDVEORFNVLQ%UD]LODUHKHOGE\,%9%UD]LO3HWUROHR
/LPLWDGD ZKLFK LV D  -RLQW 9HQWXUH EHWZHHQ 9LGHRFRQ
(QHUJ\%UD]LO/LPLWHGDQG%KDUDW3HWUR5HVRXUFHV/LPLWHG

x (DV\DYDLODELOLW\RIQDQFHCredit schemes and funding plans


PDNHUHGXFHVWKHPRQH\EXUGHQRQWKHFRQVXPHUV
7KUHDWV&RQVXPHU(OHFWURQLFV +RPH$SSOLDQFHV6HFWRU

SEGMENT-WISE PERFORMANCE

x The volatility in prices of raw material remains a factor potentially


MHRSDUGL]LQJWKHKHDOWKRIWKHSURMHFWVEXVLQHVV

The Consolidated Financial Statements have been prepared in terms


of Accounting Standard 21 on Consolidated Financial Statements,
Accounting Standard 27 on Financial Reporting of Interests in
-RLQW 9HQWXUH DQG $FFRXQWLQJ 6WDQGDUG  RQ $FFRXQWLQJ IRU
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Accordingly, the segment information as per Accounting Standard
17 on Segment Reporting has been presented in consolidated
QDQFLDOVWDWHPHQWV

x Increase in competition from domestic as well as international


SOD\HUV
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x )OXFWXDWLQJDQGVHDVRQDOGHPDQG

The segment-wise turnover on consolidated basis is as under:

x 7HFKQRORJLFDOXSJUDGDWLRQDQGDGYDQFHPHQW

(` in Million)
Segment

Consumer Electronics and


+RPH$SSOLDQFHV
Crude Oil and Natural Gas
Telecommunication
Power
Others
Total

Period ended
30th June,
2013
(18 Months)
167,800.19

Year ended
31st December,
2011
(12 Months)


19,700.64
6,053.46
688.86
(4.62)
194,238.53






2SSRUWXQLWLHVDQGWKUHDWV2LO *DV6HFWRU
Rapid industrialisation is heading towards increase in demand in
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same time the Companies have to cope up and balance the threats
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and threats faced by the oil and gas sectorOpportunities
([SDQVLRQ WKURXJK
border tie ups

OPPORTUNITIES AND THREATS

Threats
FURVV Increase in competition from
foreign competitors

Increase in demand because Government Policies


of industrial development

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pace, the technolRJLFDOODQGVFDSHFDQQRWVWD\IDUEHKLQG7KURXJK
the years, there have been lots of technical advances that have
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technologically advanced home appliances has increased by leaps
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products that enhance and accommodate their lifestyle for personal
ZHOOEHLQJ

Immergence of new
advance technologies

and ([FHVVLYH H[SORUDWLRQ


environment balance

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OUTLOOK
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regarding electronics will also be a primary driver behind the
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further, enhance brand imagery and product positioning and bring
in more and more technology-heavy innovative products in the
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Sector
x Teleshopping and online shopping- Today, in literal sense
WKHUHDUHQRERXQGDULHVIRUVKRSSLQJ$OOWKHSURGXFWVDUHMXVW
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shopping method it has become easy to reach at the doorsteps
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x Knowledge and awareness- Increased awareness and
education about the consumer products and appliances
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concerns of the consumers are driving manufacturers to device
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x Advertising and branding- Through constant hamper of
advertisements there is easy availability of information at all
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Innovation is at the heart of every product that rolls out of the


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technologically path-breaking products through constant innovation
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have constantly enriched peoples lives and touched their hearts
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edge technology through our products which make consumers
lives simple and more convenient, giving them a delightful brand
H[SHULHQFH

28

RISK & CONCERNS

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The market for consumer electronics products and household


appliances are highly competitive and the Company has
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H[SHFWV WKDW WHFKQRORJLFDO DGYDQFHV DQG DJJUHVVLYH SULFLQJ
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The Company has an internal control system commensurate with


its size and nature of business which provides for:x Accurate recording and custody of assets;
x Compliance with applicable statutes, policies, procedures,
OLVWLQJUHTXLUHPHQWVPDQDJHPHQWJXLGHOLQHVDQGFLUFXODUV

Risks: Consumer Electronics & Home Appliances Business:

x 7UDQVDFWLRQ EHLQJ DFFXUDWHO\ UHFRUGHG FURVV YHULHG DQG


promptly reported;

x Global economic environment- Consumer industry in India is


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&RPSDQ\ZLOOQHHGWRH[WHQGLWVGHPRJUDSKLFVDQGRIIHUYDOXH
proposition to the customers to develop and grow in business
IXUWKHU

x (IFLHQWXVHDQGVDIHJXDUGLQJRIUHVRXUFHV
x Adherence to applicable accounting standards and policies; and
x Information technology system which include controls for
IDFLOLWDWLQJWKHDERYH

x &XUUHQF\ XFWXDWLRQ UHODWHG ULVN- The weakening of the


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The internal structure of the Company is a pyramid like structure


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composition and competencies of the audit team and effectiveness
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x 3ULFLQJ ULVNV- The pricing across our business is under risk


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The Company strives to maintain a dynamic system of internal


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followed is as under:

x Technological changes- A substantial portion of Companys


business depends on the sales of consumer electronics
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different from the ones they supersede, there is always risk to
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Internal
Auditors to
conduct
audit

x Cross- border competition- Customers increasingly want more


from their appliances and manufacturers are working incredibly
hard to differentiate themselves in a competitive market in terms
of offering products that are easy to use and have innovative
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Risks: - Oil and Gas Industry:

&RVWFRQWDLQPHQW- At present, rising costs are being driven


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+HDOWKVDIHW\DQGHQYLURQPHQWDOULVNV+HDOWKVDIHW\DQG
environmental issues have risen on the oil and gas industrys
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FRPSOH[RSHUDWLRQDOFKDOOHQJHV

8QFHUWDLQHQHUJ\SROLF\Energy policy is in a continued state


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impacted by broader technological advancements, such as
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Department
reviews
and
evaluates
the
adequacy
of internal
controls

The
Department
submits
the Report
to the
Audit
Committee
and the
Board

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of the /isting AJUHHPHQW

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risks associated with Oil and Gas Industry

Prepare
Audit
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The
reports are
shared
with
Statutory
Auditors

DISCUSSION ON FINANCIAL PERFORMANCE


Comparative performance of the Company on Standalone Basis is
set out hereunder:
Fixed Assets
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DGGLWLRQV WR WKH JURVV EORFN RI [HG DVVHWV WR WKH H[WHQW RI `
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Sales
During the period under review, the Company achieved gross sales
of `0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDU
HQGHGRQVW'HFHPEHU

3ULFHYRODWLOLW\The pricing of oil and gas is subject to variation


and depends on a number of factors which are beyond our
FRQWURO

Other Income

The Company has in place a Risk Management Policy, but, there


are always going to be unforeseen risks and natural calamities
which will be beyond the capacity ofWKH&RPSDQ\

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29

ANNUAL REPORT 2013


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LQVXUDQFHFODLPUHFHLYHGLQWHUHVWDQGRWKHUQRQRSHUDWLQJLQFRPH

MATERIAL DEVELOPMENTS ON HUMAN RESOURCE


The Company continues its efforts of providing a high level of global
RULHQWDWLRQDQGZRUNLQJH[SHULHQFHWRDODUJHQXPEHURIPDQDJHUV
by deputing them in international assignments, participation in
workshops/seminars/forums, identifying and developing high
potential managers through Management Development Programs
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EHWZHHQ ZRUN DQG D VDWLVI\LQJ HQULFKLQJ OLIH %DVHG RQ WKH
UHVXOWVRIDQ(PSOR\HH+DSSLQHVV6XUYH\WKH&RPSDQ\IRFXVHG
on improvements in the area of training and development of
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integrate more women in the organization and to create an inclusive
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Expenditure
Cost of Goods Consumed/Sold
During the period under review, Cost of Goods Consumed stood
at `0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDU
HQGHGRQVW'HFHPEHU
Production and Exploration Expenses for Oil and Gas
During the period under review, the Production and E[SORUDWLRQ
E[SHQVHV IRU Oil and Gas were `  Million as against
`0LOOLRQIRUWKH\HDUHQGHGRQVW'HFHPEHU
(PSOR\HH%HQHWV([SHQVH

Talent management, leadership development and succession


SODQQLQJDUHWKHPDMRUIRFXVDUHDVIRUWKH&RPSDQ\7KHLQGLYLGXDO
EXVLQHVV XQLWV KDYH EHHQ IRFXVLQJ RQ DFTXLULQJ DQG UHWDLQLQJ
WKH WDOHQW ZLWK UHTXLVLWH FRPSHWHQFLHV 6SHFLF KLJK LPSDFW
programmes are being conducted for leadership development such
as training sessions, educational seminars in the areas of strategic
skills, leadership development, managerial effectiveness, sales and
VHUYLFHVNLOOVDQGRWKHUGLVFLSOLQHV

'XULQJ WKH SHULRG XQGHU UHYLHZ WKH (PSOR\HH %HQHWV ([SHQVH


stood at ` 0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDU
ended on 31st December, 2011.
Other Expenses
During the period under review, the Other E[SHQVHV ZHUH
` Million as against `0LOOLRQIRUWKH\HDUHQGHG
RQVW'HFHPEHU

7KH FRUH SULQFLSOHV HQVKULQHG LQ WKH +XPDQ 5HVRXUFHV 3ROLF\ RI
the Company are:

Finance Costs

 (TXDOLW\RIRSSRUWXQLW\

)RUWKHSHULRGHQGHGWK-XQH)LQDQFH&RVWVDPRXQWHGWR
`0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDUHQGHG
RQVW'HFHPEHU

 &RQWLQXLQJSHUVRQDOGHYHORSPHQW
 )DLUQHVV

Depreciation and Amortisation

 0XWXDOWUXVWDQG

'HSUHFLDWLRQ IRU WKH SHULRG HQGHG WK -XQH  DPRXQWHG WR
`0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDUHQGHG
RQVW'HFHPEHU

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The Company conducts employee engagement surveys through
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PRWLYDWHGDQGSURGXFWLYHZRUNIRUFH

3URW/RVV%HIRUH7D[
7KH/RVVEHIRUHTD[VWRRGDW` Million for the period ended
WK-XQHDVDJDLQVW3URW%HIRUH7D[RI`0LOOLRQ
IRUWKH\HDUHQGHGRQVW'HFHPEHU

7KHWRWDOVWDIIVWUHQJWKRIWKH&RPSDQ\DVDWQDQFLDOSHULRGHQGHG
WK-XQHLVDURXQG
,QGXVWULDOUHODWLRQVUHPDLQHGFRUGLDOGXULQJWKHSHULRGXQGHUUHYLHZ

Tax Expenses

CAUTIONARY STATEMENT

7D[ ([SHQVHV LQFOXGHV Current TD[ 'HIHUUHG 7D[ DQG ([FHVV


Short PURYLVLRQ RI ,QFRPH 7D[ IRU HDUOLHU \HDUV )RU WKH SHULRG
HQGHGWK-XQH7D[([SHQVHVCredit ` 0LOOLRQDV
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VW'HFHPEHU

Statements in this report describe the Companys objectives,


projections, estimates, expectations and predictions, may be
forward looking statements within the meaning of applicable
securities, laws and regulations. Actual results could differ
materially from those expressed or implied. The Company
assumes no responsibility to publicly amend, modify or
revise any forward looking statements, on the basis of any
subsequent development, information or events or otherwise.

1HW3URW/RVV
1HW /RVV IRU WKH SHULRG HQGHG WK -XQH  DPRXQWHG WR
`0LOOLRQDVDJDLQVWD1HWPURWRI`0LOOLRQIRUWKH
\HDUHQGHGVW'HFHPEHU

30

AUDITORS REPORT
To,
The Members of
VIDEOCON INDUSTRIES LIMITED
1.

We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES LIMITED (the Company), DVDWWK-XQH6WDWHPHQWRI3URWDQG/RVV
DQGDOVRWKH&DVK)ORZ6WDWHPHQWRIWKH&RPSDQ\IRUWKHPRQWKVSHULRGHQGHGRQWKDWGDWHDQQH[HGWKHUHWR7KHVHQDQFLDOVWDWHPHQWVDUHWKH
UHVSRQVLELOLW\RIWKH&RPSDQ\VPDQDJHPHQW2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW

2.

We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the
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EDVLVHYLGHQFHVXSSRUWLQJWKHDPRXQWVDQGGLVFORVXUHVLQQDQFLDOVWDWHPHQWV$QDXGLWDOVRLQFOXGHVDVVHVVLQJWKHDFFRXQWLQJSULQFLSOHVXVHGDQG
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reasonable basis for our opinion.

3.

As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Section 227(4A) of the Companies
Act, 1956, on the basis of such checks as considered appropriate and according to the information and explanations given to us during the course of the
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4.

Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
a)

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b)

In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
Proper returns adequate for the purpose of our audit have been received from branches not visited by us. The branch Auditors Reports have been
forwarded to us and have been appropriately dealt with;

F 

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and with the audited returns from the foreign branches;

G 

,QRXURSLQLRQWKH%DODQFH6KHHW6WDWHPHQWRI3URWDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLVUHSRUWFRPSO\ZLWKWKH$FFRXQWLQJ
Standards referred to in Section 211(3C) of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the Companies
Act, 2013, in terms of General Circular 15/2013 dated 13th September, 2013, of the Ministry of Corporate Affairs);

e)

On the basis of written representations received from the directors as on 30th June, 2013 and taken on record by the Board of Directors, we report
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Act, 1956;

f)

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FRQFHUQLVVXEVWDQWLDOO\GHSHQGHQWRQLWVDELOLW\WRIXQGLWVRSHUDWLQJDQGFDSLWDOIXQGLQJUHTXLUHPHQWV97/LVFRQGHQWRIPRELOL]LQJWKHQHFHVVDU\
UHVRXUFHVIRUFRQWLQXLQJLWVRSHUDWLRQVDVSHUWKHEXVLQHVVSODQ

+RZHYHULQYLHZRIWKHDFFXPXODWHGORVVHVRI97/ZHDUHXQDEOHWRH[SUHVVDQRSLQLRQRQWKHH[WHQWRIUHDOLVDELOLW\RIDIRUHVDLGLQYHVWPHQWVLQ
DQGDGYDQFHVWR97/7KHFRQVHTXHQWLDOHIIHFWRIWKHDERYHRQDVVHWVDQGOLDELOLWLHVDVDWWK-XQHDQGWKHORVVIRUWKHSHULRGHQGHGRQ
WKDWGDWHLVQRWDVFHUWDLQDEOH

J 

:LWKRXWTXDOLI\LQJRXUUHSRUWZHGUDZDWWHQWLRQWR1RWH1R $ WRWKHQDQFLDOVWDWHPHQWVUHJDUGLQJLQFRUSRUDWLRQRIWKH&RPSDQ\VVKDUH
in the operations of the joint ventures based on the statements received from the respective Operator. The Company has received the audited
QDQFLDOVWDWHPHQWVIRUWKHSHULRGXSWRVW0DUFKDQGXQDXGLWHGQDQFLDOVWDWHPHQWVIRUWKHSHULRGVW$SULOWRWK-XQHLQ
respect of Ravva Oil & Gas Field Joint Venture on which we have placed reliance.

K 

,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRH[SODQDWLRQVJLYHQWRXVWKHVDLGQDQFLDOVWDWHPHQWVVXEMHFWWRRXUFRPPHQW
LQ SDUDJUDSK I  DERYH WKH LPSDFW RI ZKLFK RQ WKH QDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ LI DQ\ LV XQDVFHUWDLQDEOH and read together with the
6LJQLFDQW$FFRXQWLQJ3ROLFLHVDQGQRWHVWKHUHRQJLYHWKHLQIRUPDWLRQUHTXLUHGE\WKH&RPSDQLHV$FWLQWKHPDQQHUVRUHTXLUHGDQGJLYH
a true and fair view in conformity with the accounting principles generally accepted in India:
(i)

In the case of the Balance Sheet, of the state of affairs of the Company as at 30th June, 2013;

LL 

,QWKHFDVHRIWKH6WDWHPHQWRI3URWDQG/RVVRIWKHORVVIRUWKHSHULRGHQGHGRQWKDWGDWHDQG

LLL  ,QWKHFDVHRIWKH&DVK)ORZ6WDWHPHQWRIWKHFDVKRZVIRUWKHSHULRGHQGHGRQWKDWGDWH
For KHANDELWAL JAIN & CO.
&KDUWHUHG$FFRXQWDQWV
(Firm Registration No. 105049W)

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV
(Firm Registration No. 104524W)

SHIVRATAN AGARWAL
3DUWQHU
Membership No.:104180

U. S. KADAM
3DUWQHU
Membership No.:31055

Place : Mumbai
Date : 29th November, 2013

31

ANNUAL REPORT 2013

ANNEXURE TO THE AUDITORS REPORT


Statement referred to in paragraph 3 of the Auditors Report of even date to the Members of VIDEOCON INDUSTRIES LIMITED WKH&RPSDQ\ RQWKHQDQFLDO
statements for the period ended 30th June, 2013.
(i)

D 

7KH&RPSDQ\KDVPDLQWDLQHGSURSHUUHFRUGVVKRZLQJIXOOSDUWLFXODUVLQFOXGLQJTXDQWLWDWLYHGHWDLOVDQGVLWXDWLRQRI[HGDVVHWV

E 

$VSHUWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVSK\VLFDOYHULFDWLRQRI[HGDVVHWVRWKHUWKDQWKRVHXQGHUMRLQWYHQWXUHKDVEHHQFDUULHGRXW
DWUHDVRQDEOHLQWHUYDOVLQWHUPVRIWKHSKDVHGSURJUDPPHRIYHULFDWLRQDGRSWHGE\WKH&RPSDQ\DQGQRPDWHULDOGLVFUHSDQFLHVZHUHQRWLFHGRQ
VXFKYHULFDWLRQ,QRXURSLQLRQWKHIUHTXHQF\RIYHULFDWLRQLVUHDVRQDEOHKDYLQJUHJDUGWRWKHVL]HRIWKH&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVV

F 

,QRXURSLQLRQGXULQJWKHSHULRGWKH&RPSDQ\KDVQRWGLVSRVHGRIIVXEVWDQWLDOSDUWRI[HGDVVHWV

(ii)

(a)

As per the information and explanations given to us, the inventories (excluding stock of crude oil lying at extraction site with the Operator) have
EHHQSK\VLFDOO\YHULHGGXULQJWKHSHULRGE\WKHPDQDJHPHQW,QRXURSLQLRQKDYLQJUHJDUGWRWKHQDWXUHDQGORFDWLRQRIVWRFNVWKHIUHTXHQF\RI
WKHSK\VLFDOYHULFDWLRQLVUHDVRQDEOH

E 

,Q RXU RSLQLRQ DQG DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV SURFHGXUHV RI SK\VLFDO YHULFDWLRQ RI LQYHQWRU\ IROORZHG E\ WKH
PDQDJHPHQWDUHUHDVRQDEOHDQGDGHTXDWHLQUHODWLRQWRWKHVL]HRIWKH&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVV

(c)

The Company is maintaining proper records of inventory. As per the information and explanations given to us, the discrepancies noticed on physical
YHULFDWLRQRIVWRFNVZHUHQRWPDWHULDOLQUHODWLRQWRWKHRSHUDWLRQVRIWKH&RPSDQ\DQGWKHVDPHKDYHEHHQSURSHUO\GHDOWZLWKLQWKHERRNVRI
account.

(iii)

(a)

As per the information and explanations given to us, the Company has not granted or taken any loans, secured or unsecured, to/from companies,
UPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FW

E 

$VWKH&RPSDQ\KDVQHLWKHUJUDQWHGQRUWDNHQDQ\ORDQVVHFXUHGRUXQVHFXUHGWRIURPFRPSDQLHVUPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHU
PDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FWVXEFODXVHV E  F  G  I DQG J RI&ODXVH LLL RISDUDJUDSKRIWKH2UGHUDUHQRW
applicable.

LY  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHUHDUHDGHTXDWHLQWHUQDOFRQWUROV\VWHPVFRPPHQVXUDWHZLWKWKHVL]HRI
WKH&RPSDQ\DQGWKHQDWXUHRILWVEXVLQHVVZLWKUHJDUGWRSXUFKDVHVRILQYHQWRU\DQG[HGDVVHWVDQGIRUWKHVDOHVRIJRRGVDQGVHUYLFHV'XULQJWKH
course of our audit, we have not observed any continuing failure to correct the major weakness in the internal control systems.
(v)

(vi)

(a)

Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion
that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956, have been entered in the register required
to be maintained under that Section.

(b)

In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements
HQWHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FWDQGH[FHHGLQJWKHYDOXHRI5XSHHV)LYH/DNKVLQUHVSHFWRIDQ\
party during the period, have been made at prices which are reasonable having regard to prevailing market price at the relevant time.

The Company has not accepted any deposits from the public within the meaning of the provisions of Section 58A and 58AA or any other relevant provision
of the Companies Act, 1956 and rules framed there under.

YLL  ,QRXURSLQLRQWKH&RPSDQ\KDVDQLQWHUQDODXGLWV\VWHPFRPPHQVXUDWHZLWKLWVVL]HDQGQDWXUHRILWVEXVLQHVV
(viii) The Central Government has prescribed maintenance of the cost records under Section 209(1)(d) of the Companies Act, 1956, in respect of the
Companys products. As per the information and explanations provided to us, we are of the opinion that SULPDIDFLH, the prescribed records have been
made and maintained. We have however not made a detailed examination of the records with a view to determine whether they are accurate or complete.
(ix)

(a)

According to the information and explanations given to us and the records examined by us, the Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund, Employees State Insurance, Investor Education and Protection Fund, Income tax,
Sales tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess and other statutory dues wherever applicable. According to the information and
explanations given to us, no undisputed arrears of statutory dues were outstanding as at 30th June, 2013, for a period of more than six months from
the date they became payable.

(b)

According to the records of the Company examined by us and information and explanations given to us, the particulars of dues of Sales tax, Income
tax, Wealth tax, Service tax, Custom duty, Excise duty, Cess which have not been deposited on account of any disputes, are given below:
Name of the Statute
1. Customs Act, 1962

Nature of Dues
Custom Duty and Penalties

2.

Central Excise Act, 1944

Excise Duty and Penalties

3.

Finance Act, 1994


(Service Tax Provisions)

Service Tax and Penalties

32

` in Million
315.31
15.15
50.24
4.37
72.46
15.49
18.28
7.75
1.11
27.81
449.34
3.61
0.96
338.93
25.50
0.85
110.46
24.68
0.52
14.09
1.94
4.18
0.11

Forum where dispute is pending


Supreme Court
High Court
CESTAT
Commissioner (Appeals)
Commissioner
Joint Commissioner
Deputy Commissioner
Asst. Commissioner
Supreme Court
High Court
CESTAT
Tribunal
Commissioner (Appeals)
Commissioner
Addl. Commissioner
Deputy Commissioner
Asst. Commissioner
CESTAT
Commissioner (Appeals)
Commissioner
Addl. Commissioner
Asst. Commissioner
Superintendent

Name of Statute
4.

` in Million

Nature of Dues

Central Sales Tax Act, 1956 and


State Sales Tax Acts of various
States

Sales Tax

Forum where dispute is pending


0.46 Supreme Court
0.85 High Court

18.98 Tribunal
10.30 Commissioner
100.44 Sr. Joint Commissioner
154.68 Joint Commissioner Sales Tax (Appeals)
18.58 Joint Commissioner Commercial Tax
0.72 Joint Commissioner
17.13 Joint Commissioner (Appeals)
0.24 Addl. E&T Commissioner
4.19 Deputy Commissioner (Appeals)
0.68 Deputy Commissioner
389.09 Addl. Commissioner
1.50 Addl. Commissioner (Appeals)
9.53 Deputy Commissioner of Commercial Tax
15.05 Asst. Commissioner (Appeals)
11.34 Asst. Commissioner of Commercial Tax
0.27 $VVW&RPPHUFLDO7D[DWLRQ2IFHU
0.39 6DOHV7D[2IFHU&RPPHUFLDO7D[DWLRQ2IFHU

5.

Income Tax Act, 1961

Income Tax

155.23 High Court


209.36 Appellate Tribunal
2,784.82 Commissioner (Appeals)

6.

Navi Mumbai Municipal Corporation

Cess

1,012.64 High Court

(x)

There are no accumulated losses as at 30th June, 2013. The Company has not incurred any cash losses during the period covered by our audit and the
LPPHGLDWHO\SUHFHGLQJQDQFLDO\HDU

(xi)

Based on our audit procedures and the information and explanations given to us, we observed that, the Company has defaulted in repayment of loans
DQGSD\PHQWRILQWHUHVWWREDQNVDQGQDQFLDOLQVWLWXWLRQVLVVXPPDUL]HGEHORZ
Particulars

` in Million

Delay in Days

Principal Repayment

20,731.85

1 to 89 Days

Interest

19,515.97

1 to 89 Days

(xii) Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and/or advances on
the basis of security by way of pledge of shares, debentures and other securities.
[LLL  ,QRXURSLQLRQWKH&RPSDQ\LVQRWDFKLWIXQGFRPSDQ\RUQLGKLPXWXDOEHQHWIXQGVRFLHW\7KHUHIRUHWKH&ODXVH [LLL RISDUDJUDSKRIWKH2UGHULVQRW
applicable to the Company.
(xiv) The Company has maintained proper records of transactions and contracts in respect of dealing and trading in shares, securities, debentures and other
investments and timely entries have generally been made therein. All shares, debentures and other securities have been held by the Company in its own
name except to the extent of the exemption granted under Section 49 of the Companies Act, 1956.
(xv) According to the information and explanations given to us, the terms and conditions of guarantees given by the Company for loans taken by others from
EDQNVRUQDQFLDOLQVWLWXWLRQVDUHSULPDIDFLHnot prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the term loans raised during the period were applied, on an overall basis, for the purposes for
which the loans were obtained.
(xvii) According to the information and explanations given to us and on our overall examination of the Balance Sheet of the Company, we report that the
Company has not used funds raised on short term basis for long term investments.
(xviii) The Company has not made any preferential allotment of shares during the period to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
(xix) The Company has not issued any secured debentures during the period.
(xx) During the period, the Company has not raised any money by way of public issue.
(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period.

For KHANDELWAL JAIN & CO.


&KDUWHUHG$FFRXQWDQWV
(Firm Registration No. 105049W)

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV
(Firm Registration No. 104524W)

SHIVRATAN AGARWAL
3DUWQHU
Membership No.:104180

U. S. KADAM
3DUWQHU
Membership No.:31055

Place : Mumbai
Date : 29th November, 2013

33

ANNUAL REPORT 2013

BALANCE SHEET AS AT 30TH JUNE, 2013


(` in Million)

Particulars
I.





Note No.

2
3

3,340.94
97,839.04
101,179.98

3,339.36
96,190.40
99,529.76

2)




Non-Current Liabilities
D  /RQJ7HUP%RUURZLQJV
E  'HIHUUHG7D[/LDELOLW\ 1HW
F  /RQJ7HUP3URYLVLRQV

4
5
6

161,449.86
7,076.96
1,473.89
170,000.71

60,816.22
7,351.21
1,274.62
69,442.05

3)

Current Liabilities
a) Short Term Borrowings
b) Trade Payables
F  2WKHU&XUUHQW/LDELOLWLHV
d) Short Term Provisions

7
8
9
10

57,527.27
11,412.84
28,223.93
946.85
98,110.89
369,291.58

77,567.71
11,726.55
60,418.00
873.92
150,586.18
319,557.99

58,825.01
458.16
6,674.55
49,327.79
74,741.53
190,027.04

55,030.45
820.11
7,165.07
47,228.99
55,088.18
165,332.80

41.63
21,578.97
28,327.00
4,858.26
123,663.13
795.55
179,264.54
369,291.58

208.11
20,807.09
27,504.42
5,045.46
99,761.49
898.62
154,225.19
319,557.99

II.

ASSETS
1) Non-Current Assets
a) Fixed Assets
i)
Tangible Assets
ii) Intangible Assets


LLL  &DSLWDOZRUNLQSURJUHVV

E  1RQ&XUUHQW,QYHVWPHQWV

F  /RQJ7HUP/RDQVDQG$GYDQFHV

TOTAL

2)

As at
31st Dec., 2011

EQUITY AND LIABILITIES


1) Shareholders Funds
a) Share Capital
b) Reserves and Surplus





As at
30th June, 2013

11

12
13

Current Assets
a) Current Investments
b) Inventories
c) Trade Receivables
d) Cash and Bank Balances
H  6KRUW7HUP/RDQVDQG$GYDQFHV
f)
Other Current Assets

14
15
16
17
18
19
TOTAL

6LJQLFDQW$FFRXQWLQJ3ROLFLHV
Notes forming part of the Financial Statements

1
2 to 47

As per our report of even date

For and on behalf of the Board

For KHANDELWAL JAIN & CO.


&KDUWHUHG$FFRXQWDQWV

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV

SHIVRATAN AGARWAL
3DUWQHU
Membership No. 104180

U. S. KADAM
3DUWQHU
Membership No. 31055

V. N. DHOOT
&KDLUPDQDQG0DQDJLQJ'LUHFWRU

VINOD KUMAR BOHRA


&RPSDQ\6HFUHWDU\

Place : Mumbai
Date : 29th November, 2013

34

S. PADMANABHAN
'LUHFWRU

STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 1ST JANUARY, 2012 TO 30TH JUNE, 2013
(` in Million)
Particulars
I.

Note No.

Year ended
31st Dec., 2011

187,753.84

129,194.70

6,181.09

2,692.48

181,572.75

126,502.22

4,182.66

1,063.12

185,755.41

127,565.34

INCOME
Revenue from Operations

20

/HVV([FLVH'XW\
Net Revenue from Operations
Other Income

21

Total Income
II.

Period ended
30th June, 2013

EXPENSES
Cost of Materials Consumed

22

56,643.70

40,562.96

3XUFKDVHRI6WRFNLQ7UDGH

23

59,133.82

38,501.83

&KDQJHVLQ,QYHQWRULHVRI)LQLVKHG*RRGV:RUNLQ
3URFHVVDQG6WRFNLQ7UDGH

24

(577.32)

(140.41)

3URGXFWLRQDQG([SORUDWLRQ([SHQVHV2LODQG*DV

25

12,668.34

9,007.76

(PSOR\HH%HQHWV([SHQVH

26

3,979.94

2,253.46

Finance Costs

27

27,148.18

9,777.89

Depreciation and Amortisation

11

8,243.50

6,075.64

Other Expenses

28

19,660.41

13,792.49

186,900.57

119,831.62

(1,145.16)

7,733.72

1,296.54

Deferred Tax

(274.25)

981.60

(Excess)/Short Provision of Income Tax for earlier years

(154.59)

56.47

3URW /RVV IRUWKH3HULRG

(716.32)

5,399.11

(2.38)

17.73

Total Expenses
III. 3URW /RVV %HIRUH7D[
IV. Tax Expenses
Current Tax

V.

VI. Earnings per Equity Share of face value ` HDFK

29

Basic and Diluted


6LJQLFDQW$FFRXQWLQJ3ROLFLHV

Notes forming part of the Financial Statements

2 to 47

As per our report of even date

For and on behalf of the Board

For KHANDELWAL JAIN & CO.


&KDUWHUHG$FFRXQWDQWV

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV

SHIVRATAN AGARWAL
3DUWQHU
Membership No. 104180

U. S. KADAM
3DUWQHU
Membership No. 31055

V. N. DHOOT
&KDLUPDQDQG0DQDJLQJ'LUHFWRU

VINOD KUMAR BOHRA


&RPSDQ\6HFUHWDU\

Place : Mumbai
Date : 29th November, 2013

35

S. PADMANABHAN
'LUHFWRU

ANNUAL REPORT 2013

CASH FLOW STATEMENT FOR THE PERIOD ENDED ON 30TH JUNE, 2013
Period ended on
30th June, 2013

(` in Million)
Year ended on
31st Dec., 2011

(1,145.16)

7,733.72

8,243.50
27,148.18
21.09
64.64
10.38
135.65
91.27
(491.40)
(1.73)
(43.82)
(637.11)
33,395.49

6,075.64
9,777.89
(6.36)
15.30
(2.73)
187.97
40.74
(487.06)
180.82
(279.70)
(178.94)
23,057.29

(A)

(771.88)
(913.85)
(43,420.99)
103.07
(313.71)
5,107.96
(6,813.91)
(20.59)
(6,793.32)

(405.71)
(1,071.86)
(87,305.99)
(343.38)
5,252.42
10,553.78
(50,263.45)
1,334.33
(51,597.78)

(B)

1,083.29
(11,631.77)
491.40
306.17
4,127.85
(6,058.44)
43.82
(11,637.68)

1,282.14
(12,284.38)
487.06
5,288.36
(3,842.66)
(1,095.63)
279.70
(9,885.41)

157.53
(155.95)
2,642.80
63,349.70
(20,040.44)
(27,148.18)
(211.25)
(31.33)
(12.91)
18,549.97
118.97
1,150.82
1,269.79
3,588.47
4,858.26

10.63
(150.84)
243.88
26,894.13
42,975.04
(1,133.67)
(9,777.89)
(350.55)
(57.81)
(0.25)
58,652.67
(2,830.52)
3,981.34
1,150.82
3,894.64
5,045.46

Particulars
A.

CASH FLOW FROM OPERATING ACTIVITIES


3URW /RVV EHIRUH7D[
Adjustments for:
Depreciation and Amortisation
Finance Costs
Provision for Warranty and Maintenance Expenses
Provision for Gratuity
3URYLVLRQIRU/HDYH(QFDVKPHQW
Provision for Abandonment and Site Restoration Costs
Provision for Doubtful Debts
Interest Received
Diminution/(Write back) in Value of Investments
Income from Investments and Securities Division
3URWRQ6DOHRI)L[HG$VVHWV
2SHUDWLQJ3URWEHIRUH:RUNLQJ&DSLWDO&KDQJHV
Adjustments for:
Inventories
Trade Receivables
/RDQVDQG$GYDQFHV
Other Current Assets
Trade Payables
2WKHU&XUUHQW/LDELOLWLHV
Cash generated from/(used in) Operations
/HVV7D[HV3DLG 5HIXQG QHW
1HW&DVKIURP XVHGLQ 2SHUDWLQJ$FWLYLWLHV

B.

CASH FLOW FROM INVESTING ACTIVITIES


Sale of Fixed Assets
3XUFKDVHRI)L[HG$VVHWV ,QFOXGLQJ&DSLWDO:RUNLQ3URJUHVV
Interest Received
(Increase) in Fixed Deposits and Other Bank Balances
(Purchase)/Sale of Investments (Net)
(Increase) in Investments in Subsidiaries (Net)
Income from Investments and Securities Division
1HW&DVKIURP XVHGLQ ,QYHVWLQJ$FWLYLWLHV

C.

CASH FLOW FROM FINANCING ACTIVITIES


Increase in Equity Share Capital
(Decrease) in Preference Share Capital
Share Premium Received
,QFUHDVHLQ/RQJ7HUP%RUURZLQJV
Increase/(Decrease) in Short Term Borrowings
Redemption Premium paid on Foreign Currency Convertible Bonds
Finance Costs
Payment of Dividend
Tax on Dividend
Share Issue Expenses
1HW&DVKIURP XVHGLQ )LQDQFLQJ$FWLYLWLHV
Net Change in Cash and Cash Equivalents
Cash and Cash Equivalents at beginning of the period
Cash and Cash Equivalents at end of the period
Other Bank Balances
&DVKDQG%DQN%DODQFHVDWWKHHQGRIWKHSHULRG 1RWH1R

(C)
(A+B+C)

As per our report of even date

For and on behalf of the Board

For KHANDELWAL JAIN & CO.


&KDUWHUHG$FFRXQWDQWV

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV

SHIVRATAN AGARWAL
3DUWQHU
Membership No. 104180

U. S. KADAM
3DUWQHU
Membership No. 31055

V. N. DHOOT
&KDLUPDQDQG0DQDJLQJ'LUHFWRU
VINOD KUMAR BOHRA
&RPSDQ\6HFUHWDU\

Place : Mumbai
Date : 29th November, 2013

36

S. PADMANABHAN
'LUHFWRU

NOTES FORMING PART OF THE FINANCIAL STATEMENTS


1.

SIGNIFICANT ACCOUNTING POLICIES

of Consumer Electronics Divisions other than Glass Shell Division


DQG E  RQ RIFH EXLOGLQJV DFTXLUHG DIWHU VW $SULO  RQ ZKLFK
GHSUHFLDWLRQLVSURYLGHGRQVWUDLJKWOLQHPHWKRGDWWKHUDWHVVSHFLHGLQ
the said Schedule or based on useful life of assets whichever is higher.
'HSUHFLDWLRQRQ[HGDVVHWVKHOGRXWVLGH,QGLDLVSURYLGHGRQVWUDLJKW
line method at the rates prescribed in the aforesaid Schedule or based
on useful life of assets whichever is higher. Producing Properties are
depleted using the Unit of Production Method. The rate of depletion
LVFRPSXWHGLQSURSRUWLRQRIRLODQGJDVSURGXFWLRQDFKLHYHGYLVDYLV
SURYHGUHVHUYHV/HDVHKROG/DQGLVDPRUWLVHGRYHUWKHSHULRGRIOHDVH

A)

Basis of Accounting

D 

7KH QDQFLDO VWDWHPHQWV DUH SUHSDUHG XQGHU KLVWRULFDO FRVW


convention, except for certain Fixed Assets which are revalued,
using the accrual system of accounting in accordance with the
accounting principles generally accepted in India (Indian GAAP)
and the requirements of the Companies Act, 1956, including
the mandatory Accounting Standards as prescribed by the
Companies (Accounting Standards) Rules, 2006.

b)

Use of Estimates

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Generally Accepted Accounting Principles (GAAP) requires
the management of the Company to make estimates and
assumptions that affect the reported balances of assets and
liabilities and disclosures relating to the contingent liabilities as
DW WKH GDWH RI WKH QDQFLDO VWDWHPHQWV DQG UHSRUWHG DPRXQWV
of income and expenses during the period. Example of such
estimates include provisions for doubtful debts, employee
UHWLUHPHQWEHQHWVSODQVSURYLVLRQIRULQFRPHWD[DQGWKHXVHIXO
OLYHV RI [HG DVVHWV 7KH GLIIHUHQFH EHWZHHQ WKH DFWXDO UHVXOWV
DQGHVWLPDWHVDUHUHFRJQL]HGLQWKHSHULRGLQZKLFKUHVXOWVDUH
NQRZQRUPDWHULDOL]HG

G)

% 

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D 

b)
C)

E)

Impairment of Assets
The Fixed Assets or a group of assets (cash generating unit) and
Producing Properties are reviewed for impairment at each Balance
Sheet date. In case of any such indication, the recoverable amount of
these assets or group of assets is determined, and if such recoverable
amount of the asset or cash generating unit to which the asset belongs
is less than its carrying amount, the impairment loss is recognised
by writing down such assets and Producing Properties to their
recoverable amount. An impairment loss is reversed if there is change
in the recoverable amount and such loss either no longer exists or has
decreased.

H)

)L[HG$VVHWV DUH VWDWHG DW FRVW H[FHSW IRU FHUWDLQ [HG DVVHWV
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost
LV LQFOXVLYH RI IUHLJKW LQVWDOODWLRQ FRVW GXWLHV WD[HV QDQFLQJ
cost and other incidental expenses related to the acquisition and
installation of the respective assets but does not include tax/duty
credits availed.
Capital Work in Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure.

I)

Investments
a)

Current Investments: Current Investments are carried at lower of


cost or quoted/fair value.

b)

Non Current Investments: Non Current Investments are stated


at cost. The decline in the value of the investment, other than
temporary, is provided for.

c)

Cost is inclusive of brokerage, fees and duties but excludes


Securities Transaction Tax.

Inventories
Inventories including crude oil stocks are valued at cost or net
realisable value whichever is lower. Cost of inventories comprises all
costs of purchase, conversion and other costs incurred in bringing the
inventories to their present location and condition. Cost is determined
on Weighted Average Basis.

Joint Ventures for Oil and Gas Fields


In respect of unincorporated joint ventures in the nature of Production
Sharing Contracts (PSC) entered into by the Company for oil and
gas exploration and production activities, the Companys share in the
assets and liabilities as well as income and expenditure of Joint Venture
Operations are accounted for, according to the Participating Interest of
the Company as per the PSC and the Joint Operating Agreements on a
OLQHE\OLQHEDVLVLQWKH&RPSDQ\V)LQDQFLDO6WDWHPHQWV,QUHVSHFWRI
joint ventures in the form of incorporated jointly controlled entities, the
investment in such joint venture is treated as long term investment and
carried at cost. The decline in value, other than temporary, is provided
for.

D)

,QWDQJLEOH$VVHWVDUHDPRUWLVHGRYHUDSHULRGRIYH\HDUV

J)

Borrowing Costs
Borrowing costs that are directly attributable to the acquisition,
construction or production of an qualifying asset are capitalised as
part of the cost of that asset. A qualifying asset is one that necessarily
takes substantial period of time to get ready for intended use. Other
borrowing costs are recognised as an expense in the period in which
they are incurred.

Exploration, Development Costs and Producing Properties

K)

Excise and Customs Duty

The Company follows the Full Cost method of accounting for its oil
and natural gas exploration and production activities. Accordingly, all
acquisition, exploration and development costs are treated as capital
ZRUNLQSURJUHVV DQG DUH DFFXPXODWHG LQ D FRVW FHQWUH 7KH FRVW
centre is not, normally, smaller than a country except where warranted
E\PDMRUGLIIHUHQFHLQHFRQRPLFVFDORURWKHUIDFWRUVLQWKHFRXQWU\
When any well in a cost centre is ready to commence commercial
SURGXFWLRQWKHVHFRVWVDUHFDSLWDOLVHGIURPFDSLWDOZRUNLQSURJUHVVWR
producing properties in the gross block of assets regardless of whether
RUQRWWKHUHVXOWVRIVSHFLFFRVWVDUHVXFFHVVIXO

([FLVH'XW\LQUHVSHFWRIQLVKHGJRRGVO\LQJLQWKHIDFWRU\SUHPLVHV
and Customs Duty on goods lying in customs bonded warehouse are
provided for and included in the valuation of inventory.

/ 

&(19$79DOXH$GGHG7D[

&(19$79DOXH $GGHG 7D[ %HQHW LV DFFRXQWHG IRU E\ UHGXFLQJ WKH
SXUFKDVHFRVWRIWKHPDWHULDOV[HGDVVHWVVHUYLFHV

M)

Revenue Recognition

D 

5HYHQXHLVUHFRJQLVHGRQWUDQVIHURIVLJQLFDQWULVNDQGUHZDUG
in respect of ownership.

b)

Sales/turnover includes sales value of goods, services, excise


duty, duty drawback and other recoveries such as insurance,
transportation and packing charges but excludes sale tax, value
DGGHGWD[DQGUHFRYHU\RIQDQFLDODQGGLVFRXQWLQJFKDUJHV

c)

Revenue from sale of electrical energy is accounted for on


the basis of billing as per the provisions of Power Purchase
Agreement.

d)

Insurance, Duty Drawback and other claims are accounted for as


and when admitted by the appropriate authorities.

Abandonment Costs
The full eventual estimated liability towards costs relating to dismantling,
abandoning and restoring well sites and allied facilities is recognised as
liability for abandonment cost based on evaluation by experts at current
costs and is capitalised as producing property. The same is reviewed
periodically.

F)

Depreciation, Amortisation and Depletion

7KH &RPSDQ\ SURYLGHV GHSUHFLDWLRQ RQ [HG DVVHWV KHOG LQ ,QGLD RQ
ZULWWHQGRZQYDOXHPHWKRGLQWKHPDQQHUDQGDWWKHUDWHVVSHFLHGLQWKH
Schedule XIV to the Companies Act, 1956, except, a) on Fixed Assets

37

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


e)
N)

b)

c)

LLL 

/HDYH(QFDVKPHQW

/LDELOLW\LQUHVSHFWRIOHDYHHQFDVKPHQWLVGHWHUPLQHGXVLQJ
the projected unit credit method with actuarial valuations as
RQWKH%DODQFH6KHHWGDWHDQGJDLQVORVVHVDUHUHFRJQL]HG
LPPHGLDWHO\LQWKH6WDWHPHQWRI3URWDQG/RVV

Transactions in foreign currencies are recorded at the exchange


rate prevailing on the date of transactions. Foreign Currency
0RQHWDU\ $VVHWV DQG /LDELOLWLHV DUH WUDQVODWHG DW WKH \HDU HQG
rate. The difference between the rate prevailing on the date of
transaction and on the date of settlement as also on translation
of Monetary Items at the end of the period is recognised, as the
case may be, as income or expense for the period.

Q)

Taxation
Income tax comprises of current tax and deferred tax. Provision for
FXUUHQWLQFRPHWD[LVPDGHRQWKHDVVHVVDEOHLQFRPHEHQHWVDWWKH
rate applicable to relevant assessment year. Deferred tax assets and
liabilities are recognised for the future tax consequences of timing
differences, subject to the consideration of prudence. Deferred tax
assets and liabilities are measured using the tax rates enacted or
substantively enacted by the Balance Sheet date. The carrying amount
of deferred tax asset/liability are reviewed at each Balance Sheet date
and recognised and carried forward only to the extent that there is a
reasonable certainty that the asset will be realised in future.

Forward contracts other than those entered into to hedge foreign


FXUUHQF\ ULVN RQ XQH[HFXWHG UP FRPPLWPHQWV RU RI KLJKO\
probable forecast transactions are treated as foreign currency
transaction and accounted accordingly. Exchange differences
arising on such contracts are recognised in the period in which
they arise and the premium paid/received is recognised as
H[SHQVHVLQFRPH RYHU WKH SHULRG RI WKH FRQWUDFW &DVK RZV
arising on account of roll over/cancellation of forward contracts
are recognised as income/expenses of the period in line with the
movement in the underlying exposure.

R)

Share Issue Expenses


Share issue expenses are written off to Securities Premium Account.

6 

3UHPLXPRQ5HGHPSWLRQRI%RQGV'HEHQWXUHV
Premium on Redemption of Bonds/Debentures are written off to
Securities Premium Account.

All other derivative contracts including forward contract entered


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commitments and highly probable forecast transactions which
are not covered by the existing Accounting Standard (AS) 11,
DUH UHFRJQLVHG LQ WKH QDQFLDO VWDWHPHQWV DW IDLU YDOXH DV RQ
the Balance Sheet date, in pursuance of the announcement of
the Institute of Chartered Accountants of India (ICAI) dated 29th
March, 2008, on accounting of derivatives. The resultant gains
and losses on fair valuation of such contracts are recognised in
WKH6WDWHPHQWRI3URWDQG/RVV

T)

Research and Development


Revenue expenditure pertaining to Research and Development
is charged to revenue under the respective heads of account in the
period in which it is incurred. Capital expenditure, if any, on Research
and Development is shown as an addition to Fixed Assets under the
respective heads.

U)

Accounting for Leases


Where the Company is lessee:

a)

Revenue items are translated at average rates.

D 

b)

Opening and closing inventories are translated at the rate


prevalent at the commencement and close, respectively, of the
accounting year.

2SHUDWLQJ/HDVHV5HQWDOVLQUHVSHFWRIDOORSHUDWLQJOHDVHVDUH
FKDUJHGWR6WDWHPHQWRI3URWDQG/RVV

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$SULODUHFKDUJHGWR6WDWHPHQWRI3URWDQG/RVV

LL 

$VVHWVDFTXLUHGRQRUDIWHUVW$SULOXQGHUQDQFH
lease or similar arrangements which effectively transfer
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incidental to ownership of the leased items, are capitalised
at the lower of their fair value and present value of the
minimum lease payments and are disclosed as leased
assets.

V)

Warranty

d)

Fixed assets are translated at the exchange rate as on the date


RI WKH WUDQVDFWLRQ 'HSUHFLDWLRQ RQ [HG DVVHWV LV WUDQVODWHG DW
the rates used for translation of the value of the assets to which it
relates.
Other current assets and current liabilities are translated at the
closing rate.

3 

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6KRUW7HUP(PSOR\HHV%HQHWV

6KRUW7HUP(PSOR\HHV%HQHWVDUHUHFRJQL]HGDVDQH[SHQVHDW
WKHXQGLVFRXQWHGDPRXQWLQWKH6WDWHPHQWRI3URWDQG/RVVIRU
the period/year in which the related services are rendered.

E 

3RVW(PSOR\PHQW%HQHWV

L 

Provision for the estimated liability in respect of warranty on sale of


consumer electronics and home appliances products is made in
the year in which the revenues are recognised, based on technical
evaluation and past experience.
W)

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LL 

Provisions, Contingent Liabilities and Contingent Assets


Provisions are recognised when there is a present obligation as a
UHVXOWRISDVWHYHQWVDQGLWLVSUREDEOHWKDWWKHUHZLOOEHDQRXWRZRI
resources in respect of which reliable estimates can be made.

The Company contributes monthly at a determined rate.


These contributions are remitted to the Employees
Provident Fund Organisation, India for this purpose and is
FKDUJHGWR6WDWHPHQWRI3URWDQG/RVVRQDFFUXDOEDVLV


7UDQVODWLRQRIWKHQDQFLDOVWDWHPHQWVRIIRUHLJQEUDQFK

c)

Foreign Currency Transactions


a)

2 

Dividend on investments is recognised when the right to receive


is established.

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Notes. Disputed demands in respect of Central Excise, Custom duty,
Income tax, Sales tax and Others are disclosed as contingent liabilities.
Payment in respect of such demands, if any, is shown as an advance,
WLOOWKHQDORXWFRPHRIWKHPDWWHU

&RQWLQJHQWDVVHWVDUHQRWUHFRJQLVHGLQWKHQDQFLDOVWDWHPHQWV

*UDWXLW\'HQHG%HQHW3ODQ
The Company provides for gratuity to all the eligible
HPSOR\HHV7KHEHQHWLVLQWKHIRUPRIOXPSVXPSD\PHQWV
to vested employees on retirement, on death while in
employment, or termination of employment for an amount
equivalent to 15 days salary payable for each completed
\HDURIVHUYLFH9HVWLQJRFFXUVRQFRPSOHWLRQRIYH\HDUV
RIVHUYLFH/LDELOLW\LQUHVSHFWRIJUDWXLW\LVGHWHUPLQHGXVLQJ
the projected unit credit method with actuarial valuations as
RQWKH%DODQFH6KHHWGDWHDQGJDLQVORVVHVDUHUHFRJQL]HG
LPPHGLDWHO\LQWKH6WDWHPHQWRI3URWDQG/RVV

X)

Prior period items


Prior period items are included in the respective heads of accounts and
material items are disclosed by way of Notes to Financial Statements.

Y)

Other Accounting Policies


These are consistent with the generally accepted accounting principles.

38

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


2.

As at
30th June,
2013

(` in Million)
As at
31st Dec.,
2011

Total

5,000.00
1,000.00
6,000.00

5,000.00
1,000.00
6,000.00

(a)

3,187.72
0.08
3,187.64

3,030.22
0.11
3,030.11

150.74

301.56

2.56

7.69

153.30
3,340.94

309.25
3,339.36

SHARE CAPITAL
Authorised:
500,000,000 (Previous year 500,000,000) Equity Shares of `HDFK
10,000,000 (Previous year 10,000,000) Redeemable Preference Shares of `HDFK
Issued, Subscribed and Paid-up:
Equity Shares
318,771,669 (Previous year 303,021,669) Equity Shares of `HDFKIXOO\SDLGXS
/HVV&DOOVLQ$UUHDUVE\RWKHUV
Preference Shares
i) 4,523,990 (Previous year 4,523,990) 8% Cumulative Redeemable Preference Shares of ` 33.32
each (Previous year `HDFK IXOO\SDLGXSUHGHHPDEOHDWSDURQVW2FWREHU
ii) 76,870 (Previous year 76,870) 8% Cumulative Redeemable Preference Shares of ` 33.34 each
(Previous year `HDFK IXOO\SDLGXSUHGHHPDEOHDWSDURQVW)HEUXDU\
(b)
Total (a+b)

2.1

As at 30th June, 2013

Reconciliation of the Number of Shares:


a)

No. of Shares

No. of Shares

` in Million

Equity Shares of `HDFK


Outstanding at the beginning of the period
Issued during the period
Outstanding at the end of the period

b)

As at 31st Dec., 2011

` in Million

303,021,669

3,030.22

301,963,634

15,750,000

157.50

1,058,035

3,019.64
10.58

318,771,669

3,187.72

303,021,669

3,030.22

4,523,990

301.56

4,523,990

452.40

150.82



150.84

4,523,990

150.74

4,523,990

301.56

76,870

7.69

76,870

7.69

5.13





76,870

2.56

76,870

7.69

8% Cumulative Redeemable Preference Shares


of ` 33.32 each (Previous year ` 66.66 each)
Outstanding at the beginning of the period
Redeemed during the period
Outstanding at the end of the period

c)

8% Cumulative Redeemable Preference Shares


of ` 33.34 each (Previous year `HDFK
Outstanding at the beginning of the period
Redeemed during the period
Outstanding at the end of the period

2.2

2.3

Rights, Preference and Restrictions:


a)

The Company has only one class of equity shares having par value of `SHU6KDUH(DFKKROGHURI(TXLW\6KDUHVLVHQWLWOHGWRHTXDOULJKW
of voting and dividend.

b)

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after
distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

c)

The Preference Shares do not have voting rights. They have preference over equity shareholder as to dividend and in case of liquidation.

Details of Shareholders holding more than 5% Shares:


As at 30th June, 2013

Name of Shareholders
a)

b)

c)

No. of Shares

% of Holding

As at 31st Dec., 2011


No. of Shares

% of Holding

Equity Shareholders
a)

'RPH%HOO(OHFWURQLFV,QGLD3ULYDWH/LPLWHG

19,741,049

6.19

19,067,113

6.29

b)

3ODWLQXP$SSOLDQFHV3ULYDWH/LPLWHG

15,604,666

4.90

15,604,666

5.15

c)

6KUHH'KRRW7UDGLQJ$QG$JHQFLHV/LPLWHG

28,404,836

8.91

26,015,207

8.59

d)

6\QHUJ\$SSOLDQFHV3ULYDWH/LPLWHG

16,010,575

5.02

16,010,575

5.28

e)

9LGHRFRQ5HDOW\DQG,QIUDVWUXFWXUHV/LPLWHG

63,570,518

19.94

63,566,495

20.98

8% Cumulative Redeemable Preference Shares of ` 33.32 each


(Previous year ` 66.66 each)
a)

/,&RI,QGLD/LPLWHG

b)

,'%,%DQN/LPLWHG

441,990

9.77

441,990

9.77

4,082,000

90.23

4,082,000

90.23

76,870

100.00

76,870

100.00

8% Cumulative Redeemable Preference Shares of ` 33.34 each


(Previous year `HDFK
*HQHUDO,QVXUDQFH&RUSRUDWLRQRI,QGLD/LPLWHG

39

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


(` in Million)
3.

As at
30th June,
2013

As at
31st Dec.,
2011

(a)

9.75
9.75

9.75
9.75

(b)

688.33
155.96
844.29

537.50
150.83
688.33

(c)

43,559.42
2,642.09
12.91
46,188.60
1.59
46,187.01

43,403.87
242.85
0.25
87.05
43,559.42
2.30
43,557.12

(d)

1,053.17
1,909.34
2,962.51

3,029.64
(1,976.47)
1,053.17

(e)

16,201.48
300.00
16,501.48

15,201.48
1,000.00
16,201.48

34,680.55
(716.32)
33,964.23

28,680.29
5,399.11
1,976.47
36,055.87

155.96
1,909.34
300.00
198.77
27.68
38.48
31,334.00
97,839.04

150.83

1,000.00
159.39
33.77
31.33
34,680.55
96,190.40

RESERVES AND SURPLUS


a)

b)

c)

Capital Reserve (including Capital Subsidy)


As per last Balance Sheet
Capital Redemption Reserve
As per last Balance Sheet
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV
Securities Premium Account
As per last Balance Sheet
Add: Received during the year
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/HVV&DOOVLQ$UUHDUVE\RWKHUV

d)

e)

f)

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As per last Balance Sheet
$GG /HVV 7UDQVIHUUHGIURP WR 6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV
General Reserve
As per last Balance Sheet
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV
6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV
As per last Balance Sheet
$GG3URW /RVV IRUWKHSHULRG
Add: Transferred from Bond/Debenture Redemption Reserve
Balance available for Appropriations
Less: Appropriations
Transfer to Capital Redemption Reserve
Transfer to Bond/Debenture Redemption Reserve
Transfer to General Reserve
3URSRVHG'LYLGHQG(TXLW\6KDUHV
3URSRVHG'LYLGHQG3UHIHUHQFH6KDUHV
Tax on Proposed Dividend
(f)
Total (a to f)

4.

As at 30th June, 2013


Non-Current
Current

LONG-TERM BORROWINGS
a)

b)

Secured
1RQ&RQYHUWLEOH'HEHQWXUHV
7HUP/RDQV
L  5XSHH7HUP/RDQVIURP%DQNV
LL  5XSHH7HUP/RDQVIURP)LQDQFLDO,QVWLWXWLRQV
iii) External Commercial Borrowings
LY  9HKLFOH/RDQIURP%DQNV

(` in Million)
As at 31st Dec., 2011
1RQ&XUUHQW
Current



21.60

(a)

140,291.04
9,338.05
151.79
149,780.88

7,263.32
900.48
589.41
130.35
8,883.56

40,868.44
1,421.56
1,164.44
147.18
43,601.62

15,207.16
983.59
1,541.58
75.48
17,829.41

(b)
Total (a+b)

11,652.34
16.64
11,668.98
161,449.86

2,000.00
8.78
2,008.78
10,892.34

6,749.94
10,423.73
40.93
17,214.60
60,816.22

30,331.36

15.51
30,346.87
48,176.28

Unsecured
5XSHH/RDQVIURP%DQNV
Foreign Currency Convertible Bonds
Sales Tax Deferral

4.1 Secured Loans:


a) 5XSHH7HUP/RDQVIURP%DQNVDQG)LQDQFLDO,QVWLWXWLRQV
L  7KH&RPSDQ\DORQJZLWKRWKHUDIOLDWHVHQWLWLHV FROOHFWLYHO\UHIHUUHGWRDV2EOLJRUVDQGLQGLYLGXDOO\UHIHUUHGWRDV%RUURZHU H[HFXWHG
IDFLOLW\DJUHHPHQWZLWKFRQVRUWLXPRIH[LVWLQJGRPHVWLFUXSHHWHUPOHQGHUVLQWKHREOLJRUFRREOLJRUVWUXFWXUHZKHUHLQDOOWKH5XSHH7HUP
/RDQVRIWKH2EOLJRUVDUHSRROHGWRJHWKHU7KH%RUURZHUHQWLWLHVFRYHUHGDUH9LGHRFRQ,QGXVWULHV/LPLWHG 9,/ 9DOXH,QGXVWULHV/LPLWHG
7UHQG(OHFWURQLFV/LPLWHG.$,//LPLWHG0LOOHQQLXP$SSOLDQFHV,QGLD/LPLWHG$SSOLFRPS ,QGLD /LPLWHG6N\$SSOLDQFHV/LPLWHG7HFKQR
(OHFWURQLFV/LPLWHG&HQWXU\$SSOLDQFHV/LPLWHG3((OHFWURQLFV/LPLWHG1H[W5HWDLO,QGLD/LPLWHG(YDQV)UDVHUDQG&R ,QGLD /LPLWHGDQG
9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG

40

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)




/RDQVDPRXQWLQJWR`0LOOLRQDUHVHFXUHGE\UVWSDULSDVVX charge on all present and future tangible/intangible assets (excluding the
,GHQWLHG3URSHUWLHV RIHDFKRIWKH%RUURZHUUVWSDULSDVVX charge on the Trust and Retention Accounts of the Borrowers, second SDULSDVVX charge
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RZVIURP,GHQWLHG$VVHWVDQGVHFRQGSDULSDVVXFKDUJHRYHUFXUUHQWDVVHWVRIHDFKRIWKH%RUURZHUV7KH5XSHH7HUP/RDQVDUHDOVRVHFXUHGE\
UVWUDQNLQJSOHGJHE\WKHSURPRWHUVRYHUHTXLW\VKDUHVRI9LGHRFRQ,QGXVWULHV/LPLWHG7UHQG(OHFWURQLFV/LPLWHGDQG9DOXH,QGXVWULHV/LPLWHGKHOGE\
WKHPWKHSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRW0U3UDGLSNXPDU1'KRRW0U5DMNXPDU1'KRRWDQGUVWSDULSDVVXFKDUJHRQ9LGHRFRQ
brand. However, charge has not been created in favor of such Consortium of banks (A) for the credit facility to the Obligors on the assets by way of
SOHGJHRIVKDUHVRIWKHVXEVLGLDULHVYL]9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHGDQG9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHGZKLFKKDYHEHHQSOHGJHGWR
6WDQGDUG&KDUWHUHG%DQNIRUWKHORDQVDYDOLHGE\9++/ % IRUDQ\RWKHUUHFHLYDEOHVIURP9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHGDQG & RQDQ\
DVVHWVRI9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHG $OVRUHIHU1RWH1R

LL  /RDQVDPRXQWLQJWR` 2,250.00 Million is secured by subservient charge on entire movables and current assets, both present and future of the
&RPSDQ\DQGRWKHUERUURZHUVH[FHSWIRUWKHDVVHWVRI5DYYD2LO)LHOG7KHORDQVDUHIXUWKHUVHFXUHGE\VXEVHUYLHQWFKDUJHRQ9LGHRFRQ
DQG.HQVWDUEUDQGVDQGLUUHYRFDEOHDQGXQFRQGLWLRQDOSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW
LLL  /RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\UVWSDULSDVVXFKDUJHRYHUWKH[HGDVVHWVVLWXDWHGDW%KDUXFKDQG$XUDQJDEDGERWK
present and future.
LY  /RDQV DPRXQWLQJ WR ` 9,583.33 Million are secured by Equitable Mortgage on SDULSDVVX basis on immovable property situated at Videocon
Tower, New Delhi and immovable property including land, building and machinery situated at Village Manjra, Warora, Dist. Chandrapur. The
ORDQVDUHIXUWKHUVHFXUHGE\UVWSDULSDVVX charge on book debts of consumer electronics and home appliances division which are not charged
to bankers for securing working capital loans.
Y  /RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\PRUWJDJHRILPPRYDEOHDVVHWVDQGUVWFKDUJHRQPRYDEOHDVVHWVFDVKRZVDQGLQWDQJLEOH
assets pertaining to the 5.75 MW Multi Crystalline Silicon Photovoltaic Technology Project at Warora.
Some of the loans are also secured by pledge of certain investments of the Company.
b)

([WHUQDO&RPPHUFLDO%RUURZLQJVDUHVHFXUHGE\DUVWUDQNLQJ SDULSDVVXFKDUJHRYHUDOOWKHSUHVHQWDQGIXWXUHPRYDEOHDQGLPPRYDEOH[HG
assets. The loan is further secured by personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

c)

9HKLFOH/RDQVIURP%DQNVDUHVHFXUHGE\ZD\RIK\SRWKHFDWLRQRI9HKLFOHVDFTXLUHGRXWRIWKHVDLGORDQ7KHORDQVDUHDOVRVHFXUHGE\SHUVRQDO
guarantee of Mr. Venugopal N. Dhoot.

4.2 Unsecured Loans:


a)

8QVHFXUHG5XSHH/RDQVIURP%DQNVDUHJXDUDQWHHGE\0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW

b)

The Company had, during the year 2010, issued 2,000 Foreign Currency Convertible Bonds of US$ 100,000 each (Bonds) due on 16th December,
2015, out of which 1,944 (Previous year 1,944) Bonds are outstanding.
i)

The Bonds are convertible at the option of the bondholders at any time on or after 25th January, 2011 to 7 days before maturity date i.e. 16th
'HFHPEHUDWD[HGH[FKDQJHUDWHRI` 45.255 per 1 US$ and at initial conversion price of ` 239.5265 per share being at premium of 3%
over reference share price. The conversion price will be subject to adjustment for, among other things, subdivision or consolidation of shares,
rights issues, capital distributions, stock dividends and other dilutive events.

ii) The Bonds are redeemable in whole but not in part at the option of the Company on or after 15th December, 2013, if the closing price of shares
for each of the 30 consecutive trading days prior to the date on which notice of such redemption is given was at least 130% of the conversion
price.
iii) The Bonds are redeemable at maturity date i.e. on 16th December, 2015, at its principal amount, if not redeemed or converted earlier.
c)

7KH&RPSDQ\KDVDYDLOHGLQWHUHVWIUHH6DOHV7D['HIHUUDOXQGHU6SHFLDO,QFHQWLYHWR3UHVWLJLRXV8QLW 0RGLHG 6FKHPH2XWRIWRWDORXWVWDQGLQJ


`0LOOLRQLVUHSD\DEOHLQ)<`0LOOLRQLVUHSD\DEOHLQ)<DQGEDODQFHDPRXQWRI`PLOOLRQLVUHSD\DEOHLQ)<
(` in Million)

4.3

4.4

0DWXULW\3UROHRI6HFXUHG/RDQV

Rupee Loans
IURP%DQNV

Rupee Loans
from Financial
Institutions

Vehicle Loan
IURP%DQNV

)LQDQFLDO<HDU

5,461.27

584.56

84.46

)LQDQFLDO<HDU

4,340.74

169.49

58.22

)LQDQFLDO<HDU

3,437.01

268.16

9.11

)LQDQFLDO<HDU

7,844.01

430.59



)LQDQFLDO<HDU

22,539.55

1,229.75



)LQDQFLDO<HDU

34,370.11

2,186.00



)LQDQFLDO<HDU

34,425.11

2,186.00



)LQDQFLDO<HDU

26,418.31

1,931.00



)LQDQFLDO<HDU

1,454.93

337.25



)LQDQFLDO<HDU



15.25



The Company has made certain defaults in repayment of long term loans and interest. The details of continuing defaults as at 30th June, 2013, are as
follows:
(` in Million)
Particulars
Period of Delays
1 Day
2 to 31 Days
32 to 68 Days
3ULQFLSDODPRXQWRI7HUP/RDQV
656.63
416.67
2,150.00
,QWHUHVWRQ7HUP/RDQV
439.27
1,470.56
1,355.64

41

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


(` in Million)
5.

As at
30th June,
2013

As at
31st Dec.,
2011

8,190.78
8,190.78

7,875.11
7,875.11

128.21

64.02

792.87
192.74
1,113.82
7,076.96


459.88
523.90
7,351.21

145.12

91.09

Total

49.26
1,279.51
1,473.89

39.67
1,143.86
1,274.62

(a)

20,500.00
15,476.39
35,976.39

27,573.50
9,351.89
36,925.39

(b)
Total (a+b)

7,620.83
13,930.05
21,550.88
57,527.27

40,642.32

40,642.32
77,567.71

DEFERRED TAX LIABILITY (Net)


a)

'HIHUUHG7D[/LDELOLW\
Related to Depreciation and Amortisation on Fixed Assets
(a)

b)

Deferred Tax Assets


i)
([SHQVHVFKDUJHGLQWKHQDQFLDOVWDWHPHQWVEXWDOORZDEOHDVGHGXFWLRQLQIXWXUH\HDUVXQGHU
the Income Tax Act, 1961
ii) &DUULHG)RUZDUG/RVVHV
iii) Others
(b)
(a-b)

1HW'HIHUUHG7D[/LDELOLW\
6.

LONG-TERM PROVISIONS
Provision for Gratuity (Refer Note No. 32B)
3URYLVLRQIRU/HDYH(QFDVKPHQW 5HIHU1RWH1R%
Provision for Abandonment and Site Restoration Costs

7.

SHORT-TERM BORROWINGS
Secured
/RDQIURP%DQNV
:RUNLQJ&DSLWDO/RDQVIURP%DQNV
Unsecured
/RDQIURP%DQNV
/RDQIURP2WKHUV

7.1 Secured Loans


D  6KRUW7HUP/RDQVIURP%DQNV
L 

/RDQVDPRXQWLQJWR` 15,000.00 Million are secured by subservient charge on entire movables and current assets, both present and future
of the Company and 12 other borrowers except for the assets of Ravva Oil Field. The loans are further secured by subservient charge on

9LGHRFRQ
DQG
.HQVWDU
EUDQGVDQGLUUHYRFDEOHDQGXQFRQGLWLRQDOSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1
Dhoot.

LL 

/RDQVDPRXQWLQJWR` 2,500.00 Million is secured by mortgage of properties owned by the Company and owned by others. The loan is
further secured by personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

iii)

For security of loans amounting to ` 3,000.00 Million Refer Note No. 4.1 (a) (i).

E  :RUNLQJ &DSLWDO /RDQV IURP %DQNV DUH VHFXUHG E\ K\SRWKHFDWLRQ RI WKH &RPSDQ\
V VWRFN RI UDZ PDWHULDOV SDFNLQJ PDWHULDOV VWRFNLQ
SURFHVVQLVKHGJRRGVVWRUHVDQGVSDUHVERRNGHEWVRI*ODVV6KHOO'LYLVLRQRQO\DQGSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG
Mr. Pradipkumar N. Dhoot.
7.2 Unsecured Loans

8QVHFXUHG/RDQVIURP%DQNVDUHVHFXUHGE\SHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRWDQGORDQVDPRXQWLQJ
to ` 5,000.00 Million are further secured by mortgage of properties owned by others situated at Ahmedabad, Aurangabad and Mumbai.
7.3 The Company has made certain defaults in repayment of short term loans and interest. The details of continuing defaults as at 30th June, 2013, are
as follows:
(` in Million)
Particulars

Period of Delays
1 Day

3ULQFLSDODPRXQWRI/RDQV
,QWHUHVWRQ/RDQV

8.

2 to 31 Days

32 to 61 Days



1,350.00



17.05

271.76

220.60

TRADE PAYABLES

As at
30th June,
2013

Micro, Small and Medium Enterprises


Others
Total

42

(` in Million)
As at
31st Dec.,
2011

79.93

4.61

11,332.91

11,721.94

11,412.84

11,726.55

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


8.1 Disclosure in accordance with Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 :
a)
b)
c)

As at
30th June,
2013
79.93
0.16
2.80

(` in Million)
As at
31st Dec.,
2011
4.61
0.21


Principle amount remaining unpaid as at the end of the year


Interest due thereon as at the end of the year
Interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act,
2006, along with the amount of payment made to the suppliers beyond the appointed day during the year
d) Interest due and payable for the period of delay in making payment
0.16
0.21
e) Interest accrued and remaining unpaid at the end of the year
0.16
0.21
f)
Further interest remaining due and payable even in the succeeding years, until such date when the interest dues

as above are actually paid to the small enterprises for the purpose of disallowance as deductible expenditure under
Section 23 of the Micro, Small and Medium Enterprises Development Act, 2006
Note: This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the
H[WHQWVXFKYHQGRUVSDUWLHVKDYHEHHQLGHQWLHGRQWKHEDVLVRILQIRUPDWLRQDYDLODEOHZLWKWKH&RPSDQ\

9.

Total

As at
30th June,
2013
10,892.34
106.14
1,878.05
3,774.88
10.44
8,628.35
9.87
2,923.86
28,223.93

(` in Million)
As at
31st Dec.,
2011
48,176.28
81.43
372.43

28.53
8,278.61
81.69
3,399.03
60,418.00

Total

198.77
27.68
38.48
653.24
23.27
5.41
946.85

159.39
33.77
31.33
632.15
12.66
4.62
873.92

OTHER CURRENT LIABILITIES


&XUUHQWPDWXULWLHVRI/RQJWHUP%RUURZLQJV 5HIHU1RWH1R
Bank Overdraft as per books
Interest accrued but not due on Borrowings
Interest accrued and due on Borrowings
Unclaimed Dividend
Creditors for Capital Expenditure
Payable to Related Parties
Other Payables

10.

SHORT-TERM PROVISIONS
3URSRVHG'LYLGHQG(TXLW\6KDUHV
3URSRVHG'LYLGHQG3UHIHUHQFH6KDUHV
Provision for Tax on Dividend
Provision for Warranty and Maintenance Expenses (Refer Note No. 31)
Provision for Gratuity (Refer Note No. 32B)
3URYLVLRQIRU/HDYH(QFDVKPHQW 5HIHU1RWH1R%

11. FIXED ASSETS

Particulars
i)

ii)

iii)

Tangible Assets
)UHHKROG/DQG
/HDVHKROG/DQG
Building
/HDVHKROG,PSURYHPHQWV
Plant and Machinery
Furnace
Electrical Installation
Computers
Furniture and Fixtures
2IFH(TXLSPHQWV
Vehicles
Total (i)
Intangible Assets
Computer Software
Producing Properties
Total (ii)
Total (i+ii)
Previous year as at 31st Dec., 2011
&DSLWDO:RUNLQ3URJUHVV

As at
31st Dec.,
2011

*URVV%ORFN
Additions Deductions/
Adjustments

As at
30th June,
2013

'HSUHFLDWLRQ$PRUWLVDWLRQ,PSDLUPHQW
As at
For the Deductions/
As at
31st Dec.,
period Adjustments 30th June,
2011
2013

(` in Million)
1HW%ORFN
As at
As at
30th June,
31st Dec.,
2013
2011

153.54
48.05
6,666.62
39.33
91,744.53
1,576.39
158.75
243.52
211.61
330.35
1,034.36
102,207.05

4.57

4.23

11,796.98

13.98
12.85
6.39
10.91
221.96
12,071.87

1.64

24.70

1,500.19


0.37
4.28
3.63
28.06
1,562.87

156.47
48.05
6,646.15
39.33
102,041.32
1,576.39
172.73
256.00
213.72
337.63
1,228.26
112,716.05


10.97
2,247.24
39.15
42,145.82
1,538.47
102.80
229.75
148.00
205.72
508.68
47,176.60


1.17
253.00

7,363.13
22.15
10.82
5.58
10.49
15.63
149.16
7,831.13



2.87

1,090.35


0.05
0.97
0.56
21.89
1,116.69

12.14
2,497.37
39.15
48,418.60
1,560.62
113.62
235.28
157.52
220.79
635.95
53,891.04

156.47
35.91
4,148.78
0.18
53,622.72
15.77
59.11
20.72
56.20
116.84
592.31
58,825.01

153.54
37.08
4,419.38
0.18
49,598.71
37.92
55.95
13.77
63.61
124.63
525.68
55,030.45

259.21
4,809.46
5,068.67
107,275.72
99,581.10
7,165.07

12.57
37.85
50.42
12,122.29
11,489.00



1,562.87
3,794.38

271.78
4,847.31
5,119.09
117,835.14
107,275.72
6,674.55

204.33
4,044.23
4,248.56
51,425.16
48,040.70

30.67
381.70
412.37
8,243.50
6,075.64



1,116.69
2,691.18

235.00
4,425.93
4,660.93
58,551.97
51,425.16

36.78
421.38
458.16
59,283.17
55,850.56
6,674.55

54.88
765.23
820.11
55,850.56

43

7,165.07

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


Face
Value

As at 30th June, 2013


No. of Shares
` in Million

As at 31st Dec., 2011


No. of Shares
` in Million

12. NON-CURRENT INVESTMENTS


QUOTED
A. In Equity Shares (Fully Paid-up) - Trade
6DPWHO(OHFWURQLFV'HYLFHV/LPLWHG
7UHQG(OHFWURQLFV/LPLWHG
9DOXH,QGXVWULHV/LPLWHG
B.

In Equity Shares (Fully Paid-up) - Others


$,&KDPSGDQ\,QGXVWULHV/LPLWHG
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,QGEDQN0HUFKDQW%DQNLQJ6HUYLFHV/LPLWHG
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` 10
` 10
` 10

82,000
1,408,800
1,971,973

0.11
25.41
12.52
38.04

82,000
1,408,800
1,811,748

0.25
25.41
25.18
50.84

`5
`5
`1
` 10
` 10
` 10
`4
` 10
` 10
` 10
` 10

18,000
40,000
10,000
20,848
4,800
7,600
500,000
298,557
1,300

0.36
0.13
0.04
21.66
0.03
0.05
0.84
1.08
-

18,000
40,000
10,000
10,424
221,677
4,800
7,600
501,900
41,800
298,557
1,300

0.31
0.22
0.07
16.58
28.60
0.05
0.05
4.51
0.91
1.95


` 10
` 10
` 10
`5
`2
` 10
`5
` 10
`2
` 10
`5
`2
` 10

1,567,374
253,950
7,000
300,000
1,800
1,774,153
85,000
8,700
168,731
837,629
-

9.87
1.81
2.16
28.01
0.06
6.17
7.36
0.12
0.12
97.08
176.93

1,567,374
253,950
7,000

62,953
1,800
1,853,158
85,000
3,130
8,700
178,500
998,607
3,775

11.38
2.94
2.16

1.30
0.10
21.39
11.50
0.13
0.12
0.59
61.51
0.69
167.06

` 10
` 10
` 10
Euro 1
US$ 1
US$ 1
` 10
` 10
` 10
US$ 1
` 10
` 10
` 10
` 10
` 100
US$ 50
US$ 1
US$ 1
` 10
` 10
US$ 1
` 10
` 10
Euro 100
US$ 1
US$ 1
US$ 1

35,000
17,023,500
911
36,000
1,000
10,000
9,500
1,990,000
190
1,521,000
4,750,000
21,036,000
1,900
475
2,711
190
2,600
1,900
20,117,647
1,900
34
2,982
579,500
1,000

0.35
170.24
0.04
1.96
0.05
0.44
0.10
19.90
0.01
111.26
95.00
650.36
0.19
0.94
0.13
0.01
0.03
0.08
201.18
0.02
0.13
0.14
28.35
0.05

35,000
17,023,500

36,000
1,000

2,600
9,500
1,990,000
190
1,720
1,521,000
4,750,000
21,036,000
1,900
475
2,711
190
2,600
1,900
1,900
20,117,647
1,900
34
2,982
579,500


0.35
170.24

1.96
0.05

0.03
0.10
19.90
0.01
0.02
111.26
95.00
650.36
0.19
0.94
0.13
0.01
0.03
0.02
0.08
201.18
0.02
0.13
0.14
28.35


` 10

8,125

0.83
1,281.75

8,125

0.83
1,281.30

` 10
` 10
` 10
` 10
` 100
` 10
` 10
` 10
` 10
` 10
` 10
` 10

112,500
45,000
125,000
4,800
91,250
80,000
47,500
25,000
1,900
990,600
4,500
1,170,000

13.66
22.50
0.13
0.96
49.13
0.08
0.48
0.03
0.02
0.90
1.17

112,500

125,000
4,800
91,250
80,000
47,500
25,000
1,900
990,600
4,500
1,170,000

13.66

0.13
0.96
49.13
0.08
0.48
0.03
0.02

0.90
1.17

UNQUOTED
A.

B.

In Equity Shares (Fully Paid-up) - Trade


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7HN&DUH,QGLD3ULYDWH/LPLWHG
9&,/1HWKHUODQGV%9
9HQXV&RUSRUDWLRQ/LPLWHG
&ULVWDO &D\PDQ /LPLWHG IRUPHUO\9LGHRFRQ &D\PDQ /LPLWHG
(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG
IRUPHUO\9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG
9LGHRFRQ5HDOW\DQG,QIUDVWUXFWXUHV/LPLWHG
In Equity Shares (Fully Paid-up) - Others
%ROWRQ3URSHUWLHV/LPLWHG
&XEH)LQWH[3ULYDWH/LPLWHG
'HYH6XJDUV/LPLWHG
(DVH)LQDQFH/LPLWHG
(YDQV)UDVHU &R ,QGLD /LPLWHG
*HHND\([LP ,QGLD /LPLWHG
*ROG&UHVW(OHFWURQLFV3ULYDWH/LPLWHG
*RRG9DOXH0DUNHWLQJ&RPSDQ\/LPLWHG
++RVSLWDOLW\3ULYDWH/LPLWHG
+RO]PDQQ9LGHRFRQ(QJLQHHUV/LPLWHG
.D\.D\&RQVWUXFWLRQ/LPLWHG
.RUHV,QGLD/LPLWHG

44

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


Face
Value
NON-CURRENT INVESTMENTS (Contd.)
/H[XV,QIRWHFK/LPLWHG
0D\DQN*OREDO)LQDQFH/LPLWHG
0D\DQN6HFXULWLHV3ULYDWH/LPLWHG
3DQRUDPD/RJLVWLF6ROXWLRQV/LPLWHG
3DUDPRXQW*OREDO/LPLWHG
6KUL6DKD\RJ([KLELWRUV3ULYDWH/LPLWHG
6LULV/LPLWHG
6N\%LOOLRQ7UDGLQJ/LPLWHG
7DUD+ROGLQJV3ULYDWH/LPLWHG
7KH%DQDUDV6WDWH%DQN/LPLWHG
7LWDQ5HDOW\3ULYDWH/LPLWHG
7ULQLW\,QIUDWHFK3ULYDWH/LPLWHG
9HURQLFD3URSHUWLHV3ULYDWH/LPLWHG
9LGHRFRQ 0DXULWLXV ,QIUDVWUXFWXUH9HQWXUHV/LPLWHG
9LGHRFRQ5HDOW\3ULYDWH/LPLWHG
9LGHRFRQ6(=,QIUDVWUXFWXUHV3ULYDWH/LPLWHG
<DVK9-HZHOV/LPLWHG
=RGLDF&RUSRUDWLRQ/LPLWHG
C.

D.

E.

In Equity Shares (Fully Paid-up) - Subsidiaries


&KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG
(DJOH(&RUS/LPLWHG
/LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG
0LGGOH(DVW$SSOLDQFHV//&
3LSDYDY(QHUJ\3ULYDWH/LPLWHG
3URVSHURXV(QHUJ\3ULYDWH/LPLWHG
6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG
9LGHRFRQ(OHFWURQLFV 6KHQ]KHQ /LPLWHG
&KLQHVHQDPH:HL\RXNDQJ(OHFWURQLF 6KHQ]KHQ &R/WG
9LGHRFRQ(QHUJ\/LPLWHG
(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG
IRUPHUO\9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG
9LGHRFRQ*OREDO/LPLWHG
9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG
9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG
9LGHRFRQ2LO9HQWXUHV/LPLWHG
9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG
In Equity Shares (Fully Paid-up) - Joint Ventures
9LGHRFRQ,QQLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG
In Preference Shares (Fully Paid-up)
3OXJLQ6DOHV/LPLWHG
7UHQG(OHFWURQLFV/LPLWHG
9LGHRFRQ3RZHU/LPLWHG

F.

In Bonds (Fully Paid-up)


Central Bank of India

G.

Other Investments
L  ,Q6KDUHV )XOO\3DLGXS RI&R2SHUDWLYH%DQN

$KPHGQDJDU'LVWULFW8UEDQ&HQWUDO&R2SHUDWLYH%DQN/WG
[` 500 (Previous year ` 500)]

%KDUDWL6DKDNDUL%DQN/LPLWHG

%RPED\0HUFDQWLOH&R2SHUDWLYH%DQN/LPLWHG

-DQDWD6DKDNDUL%DQN/LPLWHG

7KH6DUDVZDW&R2SHUDWLYH%DQN/LPLWHG

As at 30th June, 2013


No. of Shares
` in Million

` 10
` 10
` 10
` 10
US$ 1
` 1000
` 10
US$ 1
` 10
` 100
` 10
` 10
` 10
US$ 1
` 10
` 10
` 10
US$ 1

500,000
2,218
59,420
5,000
256,000
13,200
203,680
30,000
25,000
2,500
500,000
2,500
100,700
2,500
2,500
500,000
190

50.00
1.11
9.71
0.05
11.24
0.01
9.43
15.00
0.03
0.03
80.00
0.03
4.29
0.03
0.03
50.00
0.01
320.02

500,000

2,220
5,000
256,000
375
13,200
203,680
30,000
25,000
2,500
500,000
2,500
100,700
2,500
2,500
500,000
190

50.00

1.11
0.05
11.24
9.38
0.01
9.43
15.00
0.03
0.03
80.00
0.03
4.29
0.03
0.03
50.00
0.01
297.18

` 10
US$ 1
` 10
RO 1
` 10
` 10
` 10
US$ 1

10,000
279,950,000
2,251,800
550,000,000
10,000
1
135,000

0.10
2,799.50
270.14
5,500.00
0.10
0.11
6.42

10,000
10,000
4,960,000
2,251,800
550,000,000
10,000

135,000

0.10
0.44
49.60
270.14
5,500.00
0.10

6.42

` 10
US$ 1

100,000,000
-

1,000.00
-

100,000,000
1,000

1,000.00
0.04

US$ 1
US$ 1
` 10
` 10
` 10

802,500
2,030,000
3,000,000,000
100,000,000
563,487,120

44.48
92.75
30,000.00
1,000.00
5,634.87
46,348.47

2,500
2,030,000
2,000,000,000
100,000,000
155,552,000

0.12
92.75
20,000.00
1,000.00
1,555.52
29,475.23

` 10

5,000

0.05
0.05

5,000

0.05
0.05

` 100
` 100
` 10

3,800
10,000,000
5,000,000

0.38
1,000.00
20.00
1,020.38

3,800



0.38


0.38

` 1,000,000

50

50.00
50.00

50

50.00
50.00

` 50

10

10



` 50
` 10
` 10
` 10

7,670
4,166
857
1,000

0.38
0.04
0.09
0.01
0.52

7,670
4,166
857
1,000

0.38
0.04
0.09
0.01
0.52

` 50

31



(i)
ii)

In Shares (Fully Paid-up) of Co-Operative Society


[` 250 (Previous year ` 1,550)]

(ii)
(i+ii)

H.

Share Application Money Pending Allotment


%KDUDW%XVLQHVV&KDQQHO/LPLWHG
&KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG
0LGGOH(DVW$SSOLDQFHV//&
7UHQG(OHFWURQLFV/LPLWHG
9LGHRFRQ2LO9HQWXUHV/LPLWHG
9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG

Total Non-Current Investments

As at 31st Dec., 2011


No. of Shares
` in Million

0.52

0.52

91.63
91.63
49,327.79

4,000.00
1,000.00
91.63
1,000.00
9,000.00
814.80
15,906.43
47,228.99

Aggregate amount of Quoted Investments


214.97
217.90
Aggregate Market value of Quoted Investments
240.50
242.63
Aggregate amount of Unquoted Investments
49,112.82
47,011.09
 2XW RI WRWDO ,QYHVWPHQWV  (TXLW\ 6KDUHV RI 1H[W 5HWDLO ,QGLD /LPLWHG  (TXLW\ 6KDUHV RI 3LSDYDY (QHUJ\ 3ULYDWH /LPLWHG  (TXLW\ 6KDUHV RI
9LGHRFRQ2LO9HQWXUHV/LPLWHG(TXLW\6KDUHVRI9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHGDQG(TXLW\6KDUHVRI9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG
are pledged with Banks and Financial Institutions as security for availment of certain loans.

45

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


(` in Million)
13. LONG TERM LOANS AND ADVANCES
(Unsecured, considered good)

As at
30th June,
2013

As at
31st Dec.,
2011

(` in Million)
As at
30th June,
2013

Capital Advances

43.35

466.36

2WKHU%DQN%DODQFHV

Security Deposits

218.73

570.81

In Dividend Warrant Accounts

Advance Income Tax (Net of Provision)

138.58

4.58

/RDQVDQG$GYDQFHVWR5HODWHG3DUWLHV
(Refer Note No. 43)

47,512.23

35,112.06

In Fixed Deposits earmarked towards Site


Restoration

/RDQVDQG$GYDQFHVWR2WKHUV

26,828.64

18,934.37

In Fixed Deposits (held as margin money


for credit facilities)

74,741.53

55,088.18

0DWXULW\PRQWKVRUOHVV

Total

10.44

28.53

624.14

279.81

2,791.86

2,166.89

162.03

1,419.41

Sub-Total

3,588.47

3,894.64

Total

4,858.26

5,045.46

Excise/Customs

473.05

794.14

16.32



5,919.07

14,661.03

0DWXULW\PRUHWKDQPRQWKV
14. CURRENT
INVESTMENTS8QTXRWHG
Others

Face As at 30th June, 2013 As at 31st Dec., 2011


Value
Nos.
Nos.
` in
` in
Million
Million

18. SHORT TERM LOANS AND ADVANCES

In Units of Mutual
Funds

(Unsecured, considered good)

Baroda Pioneer
PSU Equity Fund

` 10

250,000

1.57

250,000

1.61

Balance with
Department

Canara Robeco
0XOWLFDS*URZWK

` 10

250,000

2.50

250,000

2.50

Deposits
/RDQV DQG $GYDQFHV WR 5HODWHG 3DUWLHV
(Refer Note No. 43)

HDFC PMS Real


Estate Fund
,')&&DVK)XQG
Growth
Peninsula Realty
)XQG,QGLJR

As at
31st Dec.,
2011

` 10

325,960

3.26

400,000

4.00

` 1,000

24,074

34.30





` 100,000

Central

/RDQVDQG$GYDQFHVWR2WKHUV
Total

Total

2,000

41.63

Materials in Transit and in Bonded


Warehouse
:RUNLQ3URFHVV
Finished Goods and Stock in Trade
Drilling and Production Materials
Crude Oil
Total

99,761.49

497.32

372.83

19. OTHER CURRENT ASSETS


Interest Accrued

Raw Materials including Consumables,


Stores and Spares

84,306.32

200.00
208.11

Insurance Claim Receivable

(` in Million)
15. INVENTORIES
$VWDNHQYDOXHGDQGFHUWLHGE\WKH
Management)

117,254.69
123,663.13

As at
30th June,
2013

As at
31st Dec.,
2011

13,527.94

13,583.66

2,560.53

2,295.62

994.04

830.39

4,171.24

3,800.08

222.20

236.83

103.02

60.51

21,578.97

20,807.09

Other Receivables
Total

1.45

10.71

296.78

515.08

795.55

898.62

(` in Million)
20. REVENUE FROM OPERATIONS
Sale of Products/Services
Income from Other Services
Other Operating Revenue
Total

Period ended
30th June,
2013

Year ended
31st Dec.,
2011

187,299.44

129,042.71

57.79

37.64

396.61

114.35

187,753.84

129,194.70

167,365.20

114,088.81

19,700.64

14,934.64

16. TRADE RECEIVABLES (Unsecured)


Outstanding for a period exceeding six
months
Considered Good
Considered Doubtful

20.1 3DUWLFXODUVRI6DOHRI3URGXFWV6HUYLFHV
691.02
198.19
889.21

/HVV3URYLVLRQIRU'RXEWIXO'HEWV

198.19

2WKHUV&RQVLGHUHG*RRG
Total

Electrical and Electronic items

188.89
284.41

Crude Oil and Natural Gas


Electrical Energy (Power)

473.30
284.41

691.02

188.89

27,635.98

27,315.53

28,327.00

27,504.42

Interest Income
Income from Investments and Securities
Division (Refer Note No. 30.2)

Cash and Cash Equivalents


7.12

Cheques/Drafts on hand/in transit


Balances with Banks in Current Accounts
Sub-Total

3URWRQ6DOHRI)L[HG$VVHWV

10.63

0.63

0.47

1,262.04

1,139.72

1,269.79

1,150.82

19.26

187,299.44

129,042.71

491.40

487.06

45.55

98.88

21. OTHER INCOME

17. CASH AND BANK BALANCES


Cash on hand

233.60

Insurance Claim Received


Other Non Operating Income
Total

46

637.11

178.94

34.12

160.04

2,974.48

138.20

4,182.66

1,063.12

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


22. COST OF
MATERIALS
CONSUMED

Period ended
30th June, 2013
` in Million

Percentage

(` in Million)

Year ended
31st Dec., 2011
Percentage

31.16

17,651.61

29.91

12,132.54

Indigenous

68.84

38,992.09

70.09

28,430.42

100.00

56,643.70

100.00

40,562.96

Total

28. OTHER EXPENSES

` in Million

Imported

(` in Million)
Period ended
30th June,
2013

Year ended
31st Dec.,
2011

Printed Circuit Board (All types)

12,470.66

8,879.47

Active & Passive Components

13,568.02

9,610.28

22.1 Particulars of Materials


Consumed

Period ended
30th June,
2013

Year ended
31st Dec.,
2011

Power, Fuel and Water

1,421.14

845.10

Freight and Forwarding

2,097.75

1,442.54

Rent

295.26

201.35

Rates and Taxes

228.58

95.14

Repairs to Building

9.87

8.97

Repairs to Plant and Machinery

90.08

63.95

Other Repairs and Maintenance

73.02

80.22

100.37

61.64

2,545.66

1,239.53

215.48

125.45

6,903.97

4,996.66

383.30

673.49

Payment to Auditors (Refer Note No.


30.5)

22.01

14.20

Donation

89.91

50.54

1.99

1.38

/HJDODQG3URIHVVLRQDO&KDUJHV

399.17

295.99

Opening Inventories

Royalty

262.39

180.76

)LQLVKHG*RRGVDQG6WRFNLQ7UDGH

Printing and Stationery

34.27

31.31

1,332.68

819.81

Plastic and Wooden Parts

10,367.50

7,342.08

Other Raw Materials

20,237.52

14,731.13

56,643.70

40,562.96

Total

Insurance
Advertisement and Publicity
Sales Promotion Expenses
Discount and Incentive Schemes
Bank Charges

23. PURCHASES OF STOCK-IN-TRADE


Electrical and Electronic items
Total

59,133.82

38,501.83

59,133.82

38,501.83

24. CHANGES IN INVENTORIES OF


FINISHED GOODS, WORK-INPROCESS AND STOCK-IN-TRADE

[(Includes amount paid to Bharatiya


Janata Party ` 1.00 Million, Nationalist
Congress Party ` 10.00 Million (Previous
year Bihar Pradesh Janata Dal (United)
` 5.00 Million)]

Closing Inventories
)LQLVKHG*RRGVDQG6WRFNLQ7UDGH
:RUNLQ3URFHVV
Sub-Total

:RUNLQ3URFHVV

4,274.26

3,860.59

994.04

830.39

5,268.30

4,690.98

3,860.59

Directors' Sitting Fees

3,774.08

Warranty and Maintenance

830.39

776.49

Sub-Total

4,690.98

4,550.57

Provision for Doubtful Debts

Total

(577.32)

(140.41)

Exchange Rate Fluctuation


2IFHDQG*HQHUDO([SHQVHV

25. PRODUCTION AND EXPLORATION


EXPENSE - OIL AND GAS
Production and Exploration Expenses

Total
1,048.65

783.99

Royalty

322.01

245.42

Cess

371.20

310.38

Production Bonus

71.66

54.44

10,812.77

7,587.37

42.05

26.16

12,668.34

9,007.76

3,616.20

2,038.14

Contribution to Provident Fund and


Other Funds (Refer Note No. 32A)

189.05

121.77

Staff Welfare Expenses

174.69

93.55

3,979.94

*RYHUQPHQW6KDUHLQ3URW3HWUROHXP
Insurance Expenses
Total

Total

1,641.38

1,703.41

882.34

19,660.41

13,792.49

L  1HW 3URW /RVV  DWWULEXWDEOH WR


Equity Shareholders


1HW3URW /RVV IRUWKHSHULRGDIWHU


tax adjustments for earlier years

(716.32)

5,399.11

/HVV 'LYLGHQG RQ 3UHIHUHQFH


Shares including Tax on the same

32.38

39.25

1HW 3URW /RVV  DWWULEXWDEOH WR


Equity Shareholders

(748.70)

5,359.86

ii) Weighted Average Number of Equity


Shares considered for calculation of
Basic EPS

314,683,004

302,308,789

2,253.46

Weighted Average Number of Equity


Shares considered for calculation of
Diluted EPS

314,683,004

302,308,789

(The effect of conversion option of


FCCBs is anti dilutive in nature)

27. FINANCE COSTS


Interest Expenses

40.74

1,358.83

29. EARNINGS PER SHARE

26. EMPLOYEE BENEFITS EXPENSE


6DODU\:DJHVDQG2WKHU%HQHWV

91.27

25,218.53

9,642.44

Other Borrowing Costs

965.93

135.45

$SSOLFDEOH 1HW /RVV *DLQ  RQ )RUHLJQ


Currency Transactions

963.72



iii) Basic Earnings per Share of `


each (`)

(2.38)

17.73

Total

27,148.18

9,777.89

Diluted Earnings per Share of `


each (`)

(2.38)

17.73

47

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


30. ADDITIONAL NOTES TO FINANCIAL STATEMENTS

31. As required by Accounting Standard 29 Provisions, Contingent


/LDELOLWLHVDQG&RQWLQJHQW$VVHWVLVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG
Accountants of India, the disclosure with respect to Provision for
Warranty and Maintenance Expenses is as follows:

30.1 During the period, there is a write back of ` 1.73 Million (Previous
year charge of ` 180.82 Million) against the diminution recognised
in earlier years in the value of investments.

(` in Million)

30.2 The Company has kept the investment activities separate and
distinct from other businesses. Consequently, all the income and
expenditure pertaining to investment activities have been allocated
to the Investments and Securities Division and the income/(loss) after
QHWWLQJRIWKHUHODWHGH[SHQGLWXUHKDVEHHQVKRZQDV,QFRPH /RVV 
from Investments and Securities Division under Other Income
which includes in respect of the long term investments, dividend of
` 1.89 Million (Previous year ` 6.63 Million), interest on bonds of
` 6.96 Million (Previous year `0LOOLRQ SURWRQVDOHGLVSRVDORI
investments of ` 43.05 Million (Previous year loss of ` 46.29 Million)
and in respect of current investments, dividend of ` 0.27 Million
(Previous year ` Nil).

Period ended
30th June, 2013

Year ended
31st Dec., 2011

a) Amount at the beginning of the period

632.15

638.51

b) Additional provision made during the


period

653.24

632.15

c)

602.89

602.82

29.26

35.69

653.24

632.15

Amount used

d) Unused amount reversed during the


period
e) Amount at the end of the period

(` in Million)
30.3 C.I.F. Value of Imports, Expenditure and
Earnings in Foreign Currency
a) C.I.F. Value of Imports:
Raw Materials
Capital Goods (including advances)
b) Expenditure incurred in Foreign
Currency:
Cash Call paid to the Operator for the
project
Interest and Bank Charges
Royalty
Travelling
Others
c) Other Earnings/Receipts in Foreign
Currency:
F.O.B. Value of Exports
 2WKHUV
 5HLPEXUVHPHQW RI ([SHQVHV RI
` 708.84 Million (Previous year `Nil) is
not considered)

Period ended
30th June,
2013

Year ended
31st Dec.,
2011

23,884.27
213.56

14,026.74
709.66

284.15

813.21

32. EMPLOYEE BENEFITS:


Disclosure pursuant to Accounting Standard (AS) 15 (Revised):
$  'HQHG&RQWULEXWLRQ3ODQV
Amount of ` 189.05 Million (Previous year ` 121.77 Million) related
to contribution to Provident and Other Funds are recognised as an
H[SHQVHDQGVKRZQXQGHUWKHKHDG(PSOR\HH%HQHWV([SHQVH
5HIHU1RWH1R LQWKH6WDWHPHQWRI3URWDQG/RVV
(` in Million)
%  'HQHG%HQHW3ODQV

1,429.31
266.04
43.15
72.65

984.13
47.10
16.33
148.67

6,428.15
3,423.61

3,838.47
2.06

Gratuity
30th June,
2013

Leave Encashment

31st Dec., 30th June,


2011
2013

31st Dec.,
2011

I) The amounts recognised in the


Balance Sheet as at the end of
the period:
a) 3UHVHQW YDOXH RI 'HQHG
%HQHW2EOLJDWLRQ

223.73

158.49

54.67

44.29

55.34

54.74



(168.39)

(103.75)

(54.67)

(44.29)

(145.12)

(91.09)

(49.26)

(39.67)

(23.27)

(12.66)

(5.41)

(4.62)

a) Current Service Cost

54.75

20.64

20.35

7.34

b) Interest Cost

22.47

10.93

5.21

3.57

c) $FWXDULDO *DLQV /RVVHV

13.54

2.15

22.45

7.52

7.52

4.31



83.24

29.41

48.01

18.43

158.49

138.50

44.29

47.02

b) Fair value of Plan Assets


c) )XQGHG 6WDWXV  6XUSOXV
'HFLW
d) 1HW$VVHWV /LDELOLW\

Period ended
30.4 Remittance in Foreign Currency on
30th June,
account of Dividend
2013

Year ended
31st Dec.,
2011

i) Non Current
ii) Current
II) The amounts recognised in the
6WDWHPHQW RI 3URW DQG /RVV
for the period:

The Company has paid dividend in respect


RI VKDUHV KHOG E\ 1RQ5HVLGHQWV RQ
repatriation basis where the amount is also
FUHGLWHGWR1RQ5HVLGHQW([WHUQDO$FFRXQW
(NRE A/c). The exact amount of dividend
remitted in foreign currency can not be
ascertained. The total amount remittable in
this respect is given below:
D  1XPEHURI1RQ5HVLGHQW6KDUHKROGHUV

1,217

1,372

b) Number of Equity Shares held by them

38,531,878

24,556,038

19.27

24.56

c)

Gross Amount of Dividend (` in Million)

d) Year to which dividend relates

FY 2011

d) Actual return on Plan


Assets
e) Total Expenses
III) The changes in Obligations
during the period:

)<

a) 3UHVHQW YDOXH RI 'HQHG


%HQHW 2EOLJDWLRQ DW WKH
beginning of the period

(` in Million)
30.5

Payment to Auditors

Period ended
30th June,
2013

Year ended
31st Dec.,
2011

b) Current Service Cost

54.75

20.64

20.35

7.34

10.50

7.00

c) Interest Cost

22.47

10.93

5.21

3.57

a)

Statutory Audit Fees

b)

Tax Audit Fees

2.80

1.40

d) $FWXDULDO *DLQV /RVVHV

13.54

2.15

22.45

7.52

c)

Out of Pocket Expenses

0.34

0.23

e) %HQHW3D\PHQWV

25.52

13.73

37.63

21.16

d)

Other Services

8.37

5.57

f)

223.73

158.49

54.67

44.29

22.01

14.20

Total

48

3UHVHQW YDOXH RI 'HQHG


%HQHW 2EOLJDWLRQ DW WKH
end of the period

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


f) Show Cause Notices (SCNs) have been served on the
Operator of the Ravva Oil & Gas Field Joint Venture (Ravva
JV) for non payment of Service Tax and Educational Cess
on various services for the period July, 2003 to 31st March,
2012. The amount involved relating to Ravva Block is `
418.88 Million (Previous year ` 412.56 Million).
The Operator is contesting the SCNs/demands before
&RPPLVVLRQHURI6HUYLFH7D[DQGKDVOHGDSSHDOEHIRUH
CESTAT, Bangalore and also writ petition before Hon'ble
High Court of Madras challenging service tax demands on
some of the services and believes that its position is likely
to be upheld. The ultimate outcome of the matter cannot be
presently determined and no provision for any liability that
may result has been made in the accounts as the same is
subject to agreement by the members of the Joint Venture.
Should it ultimately become payable, the Companys share
as per the participating interest would be upto ` 104.72
Million (Previous year ` 103.14 Million).
g) Disputed Income Tax demand amounting to ` 22.29
Million (Previous year ` 22.29 Million) in respect of certain
payments made by Ravva Oil & Gas Field Joint Venture is
currently pending before the Hon'ble High Court of Madras.
The ultimate outcome of the matter cannot presently be
determined and no provision for any liability that may result
has been made as the same is subject to agreement by the
members of the Joint Venture. Should it ultimately become
payable, the Company's share as per the participating
interest would be upto ` 5.57 Million (Previous year ` 5.57
Million).

(` in Million)
Gratuity
30th June,
2013

Leave Encashment

31st Dec., 30th June,


2011
2013

31st Dec.,
2011

IV) The changes in Plan Assets


during the period:
a) Plan Assets at the
beginning of the period

54.74

50.05



8.36

8.57



c) $FWXDO%HQHWVSDLG

15.28

8.19



d) Plan Assets at the end of


the period

55.34

54.74



7.52

4.31



b) Contribution by Employer

e) Actual return on Plan


Assets
V) Actuarial Assumptions
a) Discount Rate

 8% per annum

b) Mortality

 /,&  8OWLPDWH

c) Turnover Rate

 5% at younger ages reducing to


1% at older ages

d) Future Salary Increase

 5% per annum
(` in Million)

33. CONTINGENT LIABILITIES AND


COMMITMENTS
A)

As at
30th June,
2013

As at
31st Dec.,
2011

508.19

628.54

i) /HWWHUVRI*XDUDQWHHV

39,317.01

76,432.95

ii) /HWWHUVRI&UHGLWRSHQHG
LQFOXGLQJ6WDQGE\/HWWHUVRI
&UHGLWDQG/HWWHURI&RPIRUW

61,216.92

29,921.44

502.46

447.02

b) Income Tax demands under


dispute

3,149.41

494.74

c) Excise Duty and Service


Tax demands and penalties
under dispute [Amount
paid under protest ` 30.86
Million (Previous year ` 4.21
Million)]

1,034.95

610.88

d) Sales Tax demands under


dispute

1,131.51

919.84

2,153.30

1,062.64

Estimated amount of contract


remaining to be executed on capital
account and not provided for (net of
advances)
B)

34. There were certain disputes with the Government of India (GOI) with
respect to the Production Sharing Contract dated 28th October, 1994
(Ravva PSC) pertaining to Ravva Oil & Gas Field which were referred
to international arbitration for resolution. The Arbitral Tribunal has issued
D 3DUWLDO$ZDUG DQG LV VWLOO VHL]HG RI WKH PDWWHU DQG LV \HW WR LVVXH D
Final Award, other than for the dispute relating to Base Development
&RVWV %'& IRUZKLFKDQDODZDUGZDVLVVXHGRQWK-DQXDU\
substantially in favour of the Company. Issue relating to deductibility
of ONGC Carry Costs arising out of the Partial Award was appealed
by the GOI before the Malaysian Appellate Authorities which has since
EHHQUHMHFWHG RQJURXQGVLQWHUDOLDRIMXULVGLFWLRQDQGPDLQWDLQDELOLW\ 
E\ VXFK DXWKRULWLHV DQG LV QRZ EHIRUH WKH QDO DSSHOODWH DXWKRULW\ LH
the Federal Court of Malaysia. Issue relating to deductibility of the BDC
was appealed by the GOI before the Malaysian Appellate Authority
which has since been rejected by such authority and is now before the
&RXUW RI$SSHDO DW 0DOD\VLD 3HQGLQJ QDO UHVROXWLRQ RI WKH GLVSXWHV
certain amounts have been short paid by GOI Nominees which have
been disputed by the Company and the Company is seeking refund of
amounts excessively deducted. Based on legal advice, the Company
believes its contentions will be upheld. Any further sum required to be
paid or returnable in respect of such disputes in accordance with the
determination of the amount by the Honble Arbitral Tribunal/relevant
FRXUWVLQWKLVUHJDUGVKDOOEHDFFRXQWHGIRURQWKHQDORXWFRPHLQWKRVH
matters.

Commitments

Contingent Liabilities not


provided for:

iii) Claims against the Company


not acknowledged as debts
a) Custom Duty demands and
penalties under dispute
[Amount paid under protest
` 3.41 Million (Previous year
` 0.07 Million)]

35. 7KH &RPSDQ\ DORQJZLWK  RWKHU DIOLDWHVHQWLWLHV FROOHFWLYHO\


UHIHUUHGWRDV2EOLJRUVRULQGLYLGXDOO\DV%RUURZHU H[HFXWHG)DFLOLW\
Agreement with the consortium of existing domestic rupee term lenders,
XQGHUWKHREOLJRUFRREOLJRUVWUXFWXUHZKHUHLQDOOWKH5XSHH7HUP/RDQV
of the Obligors are pooled together. The Borrower entities are Videocon
,QGXVWULHV/LPLWHG9DOXH,QGXVWULHV/LPLWHG7UHQG(OHFWURQLFV/LPLWHG
.$,/ /LPLWHG 0LOOHQQLXP $SSOLDQFHV ,QGLD /LPLWHG $SSOLFRPS ,QGLD 
/LPLWHG 6N\$SSOLDQFHV /LPLWHG 7HFKQR (OHFWURQLFV /LPLWHG &HQWXU\
$SSOLDQFHV/LPLWHG3((OHFWURQLFV/LPLWHG1H[W5HWDLO,QGLD/LPLWHG
(YDQV )UDVHU DQG &R ,QGLD  /LPLWHG DQG 9LGHRFRQ ,QWHUQDWLRQDO
(OHFWURQLFV /LPLWHG$V SHU WKH VDLG )DFLOLW\$JUHHPHQW WKH &RPSDQ\
LV DJHQW RI WKH 2EOLJRUV DQG KDV EHHQ UHIHUUHG WR DV 2EOLJRU$JHQW
7KH5XSHH7HUP/RDQVKDYHWREHXWLOLVHGIRUWKHSXUSRVHPHQWLRQHGLQ
WKH)DFLOLW\$JUHHPHQWZKLFKLVPDLQO\IRUUHQDQFLQJRIH[LVWLQJ5XSHH
7HUP /RDQV RI WKH 2EOLJRUV $FFRUGLQJO\ WKH 5XSHH 7HUP /RDQV RI
` 20,439.54 Million have been allocated to respective Obligors based on
their outstanding amount as on 31st December 2011. As the Company is
DFRREOLJRULWLVFRQWLQJHQWO\OLDEOHLQUHVSHFWRIWKHERUURZLQJVRIRWKHU
Obligors/Borrowers to the extent of outstanding balance of Rupee Term
/RDQVDVRQWK-XQHRI` 20,307.40 Million (Previous year ` Nil).

[Amount paid under protest


` 377.09 Million (Previous
year ` 360.08 Million)]
e) Others [Amount paid under
protest ` 50.00 Million
(Previous year ` 50.00
Million)]

49

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


36. 7KH&RQVRUWLXPRIYDULRXVEDQNVKDYHVDQFWLRQHGWKH/HWWHURI&RPIRUW
/R& 6WDQGE\ /HWWHUV RI &UHGLW 6%/&  IDFLOLW\ WR WKH &RPSDQ\ DQG
LWV VXEVLGLDU\ 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG 929/  FROOHFWLYHO\
UHIHUUHG WR DV 2EOLJRUV  WR VHFXUH WKH IRUHLJQ FXUUHQF\ IDFLOLW\ UDLVHG
 WR EH UDLVHG E\ 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG 9++/  DQ
RYHUVHDVVXEVLGLDU\IURPLWVOHQGHUV7KH/R&6%/&IDFLOLW\LVVHFXUHG
E\UVWUDQNLQJSOHGJHRIVKDUHVRI929/9++/DQGVKDUHVRI
FHUWDLQ VXEVLGLDULHV RI 9++/ FKDUJH RYHU WKHLU [HG DVVHWV 9++/V
VKDUHRIFDVKRZVIURPLGHQWLHGRLO JDVDVVHWVWKURXJKHVFURZRI
UHFHLYDEOHVUVWUDQNLQJH[FOXVLYHFKDUJHRQVSHFLHGEDQNDFFRXQWV
IRU WKH EHQHW RI WKH UHOHYDQW /R&6%/& SURYLGHU H[FOXVLYH FKDUJH
RQ RLO  JDV IDFLOLW\ VHUYLFLQJ DFFRXQW RI 2EOLJRUV VHWXS XQGHU WKH
onshore Trust and Retention Accounts, negative lien for shares of other
VXEVLGLDULHVRI9++/YL]9LGHRFRQ-3'$/LPLWHGDQG9LGHRFRQ
$XVWUDOLD:$3/LPLWHGUVWSDULSDVVXFKDUJHRQ9LGHRFRQEUDQG
and personal guarantees of Mr. Venugopal N. Dhoot, Mr. Pradipkumar
N. Dhoot and Mr. Rajkumar N. Dhoot. However, charge has not been
created in favor of Consortium of banks (A) for the credit facility to the
OEOLJRUVRQWKHDVVHWVE\ZD\RISOHGJHRIVKDUHVRIWKHVXEVLGLDULHVYL]
9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHGDQG9LGHRFRQ0R]DPELTXH5RYXPD
/LPLWHGZKLFKKDYHEHHQSOHGJHGWR6WDQGDUG&KDUWHUHG%DQNIRUWKH
ORDQV DYDLOHG E\ 9++/ %  IRU DQ\ RWKHU UHFHLYDEOHV IURP 9LGHRFRQ
0R]DPELTXH 5RYXPD  /LPLWHG DQG &  RQ DQ\ DVVHWV RI 9LGHRFRQ
0R]DPELTXH5RYXPD/LPLWHG


28th August, 2006. The Joint Venture (JV) comprised of the


&RPSDQ\2LOH[/LPLWHG*XMDUDW6WDWH3HWUROHXP&RUSRUDWLRQ
/LPLWHG +LQGXVWDQ 3HWUROHXP &RUSRUDWLRQ /LPLWHG %KDUDW
3HWUROHXP &RUSRUDWLRQ /LPLWHG 6DVRO 3HWUROHXP $XVWUDOLD
/LPLWHGDQG$SDFKH1RUWKZHVW3W\/LPLWHG $SDFKH $SDFKH
was the Operator with 40% interest in JV. The Petroleum
([SORUDWLRQ 3HUPLW :$3 H[SLUHG RQ WK $XJXVW 
and ceased to be inforce.
B)

Incorporated Jointly Controlled Entities:


L  9LGHRFRQ ,QQLW\ ,QIUDVWUXFWXUHV 3ULYDWH /LPLWHG LV D   
-RLQW 9HQWXUH &RPSDQ\ LQFRUSRUDWHG LQ ,QGLD ZLWK ,QQLW\
,QIRWHFK3DUNV/LPLWHGWRFDUU\RQWKHEXVLQHVVRILQIUDVWUXFWXUH
development like construction of IT/ITes Parks, Biotech Parks
etc. The Joint Venture Company has not commenced its
commercial operations.
LL  7KH QDQFLDO LQWHUHVW RI WKH &RPSDQ\ LQ WKH MRLQWO\ FRQWUROOHG
LQFRUSRUDWHGHQWLW\EDVHGRQQDQFLDOVWDWHPHQWUHFHLYHGLVDV
under:
(` in Million)
Company's share in
Assets
/LDELOLWLHV
Income
Expenses
Tax

$FFRUGLQJO\WKH &RPSDQ\ LVFRQWLQJHQWO\ OLDEOH LQUHVSHFWRI WKH/R&


6%/&IDFLOLW\RI929/WRWKHH[WHQWRI` 69,933.48 Million (Previous year
` Nil).

37. The Company has, directly and through its subsidiaries, made
investments aggregating to ` 49,337.50 Million and also given advances
of `0LOOLRQWR9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ WKH
VXEVLGLDU\ 97/ ZDV JUDQWHG WKH OLFHQVH IRU SURYLGLQJ 8QLHG $FFHVV
Services (UAS) in 21 circles by the Department of Telecommunications,
Government of India (DoT) in 2008 and was also allotted spectrum
in 20 circles. The Honble Supreme Court of India, vide its judgment
dated 2nd February, 2012, quashed all the UAS licenses granted on or
after 10th January, 2008 and the subsequent allocation of spectrum to
WKHVHOLFHQVHHVZKLFKDOVRLQFOXGHWKH8$6OLFHQVHVJUDQWHGWR97/
and the spectrum allotted to it. The Honble Supreme Court of India,
also directed the Telecom Regulatory Authority of India (TRAI) to make
fresh recommendations for grant of licenses and allocation of spectrum
and the Central Government to grant fresh licenses and allocation of
spectrum by auction thereafter.

C)

The estimated amount of commitment of the Company towards


contribution in various Joint Ventures for next year based on
minimum work program is ` 3,656.49 Million (Previous year
` 239.96 Million).

i)

Unincorporated Joint Ventures:


7KH)LQDQFLDO6WDWHPHQWVUHHFWWKHVKDUHRIWKH&RPSDQ\LQWKH
assets and the liabilities as well as the income and the expenditure
RI-RLQW9HQWXUH2SHUDWLRQVRQDOLQHE\OLQHEDVLV7KH&RPSDQ\
incorporates its share in the operations of the Joint Venture
based on statements of account received from the Operator. The
&RPSDQ\KDVLQWHUPVRI6LJQLFDQW$FFRXQWLQJ3ROLF\1R ( 
recognised abandonment costs based on the technical assessment
of current costs as cost of producing properties and has provided
GHSOHWLRQ WKHUHRQ XQGHU 8QLW RI 3URGXFWLRQ PHWKRG DV SDUW RI
Producing Properties in line with Guidance Note on Accounting of
Oil and Gas Producing Activities issued by the Institute of Chartered
Accountants of India.
i)

31st Dec., 2011


4.20
4.15




39. The outstanding balances of certain Trade Receivables, Trade Payables,


'HSRVLWV$GYDQFHVDQG2WKHU&XUUHQW$VVHWV/LDELOLWLHVDUHVXEMHFWWR
FRQUPDWLRQ DQG UHFRQFLOLDWLRQ LI DQ\ +RZHYHU LQ WKH RSLQLRQ RI WKH
management, adjustment, if any, will not be material.
40. In the opinion of the Board, the value on realisation of Current Assets,
/RDQVDQG$GYDQFHVLQWKHRUGLQDU\FRXUVHRIWKHEXVLQHVVZRXOGQRWEH
less than the amount at which they are stated in the Balance Sheet and
the provision for all known and determined liabilities is adequate and not
in excess of the amount reasonably required.
41. There are no amounts due and outstanding, to be credited to the
Investor Education and Protection Fund.
42. Related Party Disclosures:
As required under Accounting Standard 18 on Related Party
'LVFORVXUHVWKHGLVFORVXUHRIWUDQVDFWLRQZLWKUHODWHGSDUWLHVDVGHQHG
in the Accounting Standard are given below:
A) List of Related Parties where control exists and related parties
ZLWKZKRPWUDQVDFWLRQVKDYHWDNHQSODFHDQGUHODWLRQVKLS

The Central Government conducted the auction of spectrum in


1RYHPEHU97/SDUWLFLSDWHGLQWKHDXFWLRQDQGKDVEHHQGHFODUHG
as a successful bidder in 6 circles and has been awarded spectrum
LQ WKHVH FLUFOHV 97/ LV FRQWLQXLQJ LWV EXVLQHVV DV D JRLQJ FRQFHUQ
$V 97/ KDV KXJH DFFXPXODWHG ORVVHV LWV DELOLW\ WR FRQWLQXH DV JRLQJ
concern is dependent on its ability to fund its operating requirements.
97/ LV FRQGHQW RI PRELOL]LQJ QHFHVVDU\ UHVRXUFHV IRU FRQWLQXLQJ LWV
operations as per the business plan. Accordingly, in the opinion of the
management, no provision is required for diminution in the value of
DIRUHVDLGLQYHVWPHQWVDQGDGYDQFHVWR97/
38. A)

30th June, 2013


6.30
6.25
-

The Company has participating interest of 25% in Ravva Oil


and Gas Field Joint Venture (JV) through a Production Sharing
Contract (PSC). Other members of the JV are Oil and Natural
*DV &RUSRUDWLRQ /LPLWHG &DLUQ ,QGLD /LPLWHG IRUPHUO\ &DLUQ
(QHUJ\ ,QGLD 3W\ /LPLWHG  DQG 5DYYD 2LO 6LQJDSRUH  3WH
/LPLWHG 7KH SDUWLHV KDYH SXUVXDQW WR WKH 36& HQWHUHG LQWR
D -RLQW 2SHUDWLQJ$JUHHPHQW &DLUQ ,QGLD /LPLWHG LV QRZ WKH
2SHUDWRU &DLUQ(QHUJ\,QGLD3W\/LPLWHGZDVWKH2SHUDWRUXSWR
15th October, 2012).

ii) The Company had participating interest of 8.4% in Block


:$3 LQ H[SORUDWLRQ SHUPLW IRU D WHUP RI  \HDUV IURP

50

Subsidiaries:
D  &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG
E  (DJOH(&RUS/LPLWHG XSWRWK-XQH
F  /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG
G  0LGGOH(DVW$SSOLDQFHV//&
H  3LSDYDY(QHUJ\3ULYDWH/LPLWHG
I  3URVSHURXV(QHUJ\3ULYDWH/LPLWHG
J  9LGHRFRQ (OHFWURQLFV 6KHQ]KHQ  /LPLWHG &KLQHVH
1DPH:HL\RXNDQJ(OHFWURQLF 6KHQ]KHQ &R/WG
K  9LGHRFRQ*OREDO/LPLWHG
L  9LGHRFRQ2LO9HQWXUHV/LPLWHGDQGLWVVXEVLGLDULHV
- 9LGHRFRQ(VWHOOH/LPLWHG
- 9LGHRFRQ,YRU\/LPLWHG
- 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG DQG LWV
subsidiaries
- 9LGHRFRQ-3'$/LPLWHG
- Videocon Indonesia Nunukan Inc.
- 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG
- 9LGHRFRQ$XVWUDOLD:$3/LPLWHG
- 2LO 6HUYLFHV ,QWHUQDWLRQDO 6$6 /LTXLGDWHG RQ
10th July, 2012)
- 9LGHRFRQ 0DXULWLXV (QHUJ\ /LPLWHG ZHI WK
December, 2012) and its subsidiary
- 9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHG

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


M 

(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG IRUPHUO\9LGHRFRQ
(QHUJ\ 9HQWXUHV /WG  XSWR WK -XQH   DQG LWV
subsidiary

(` in Million)
Particulars

- 0HUFXU\ &RUSRUDWH 9HQWXUHV /LPLWHG IRUPHUO\


9LGHRFRQ2PDQ/LPLWHG  XSWRWK-XQH
N 

Reimbursement of
Expenses

9LGHRFRQ ,QWHUQDWLRQDO (OHFWURQLFV /LPLWHG DQG LWV


subsidiaries

Non Current Investments


(net)

- -XPER7HFKQR6HUYLFHV3ULYDWH/LPLWHG
- 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG
- 9LGHRFRQ 7HOHFRPPXQLFDWLRQV /LPLWHG DQG LWV
subsidiary
- 'DWDFRP7HOHFRPPXQLFDWLRQV3ULYDWH/LPLWHG
O 

9LGHRFRQ(QHUJ\/LPLWHGDQGLWVVXEVLGLDU\
- 3URFLHQW(QHUJ\3ULYDWH/LPLWHGDQGLWVVXEVLGLDU\
- $SSOLHG(QHUJ\3ULYDWH/LPLWHGDQGLWVVXEVLGLDULHV
- 8QLW\3RZHU3ULYDWH/LPLWHG
- &RPHW3RZHU3ULYDWH/LPLWHGDQGLWVVXEVLGLDULHV

ii)

28,816.14
(18,610.91)

Short Term Advances/


/RDQVJLYHQ

3,050.07
(6,158.31)

/RQJ7HUP$GYDQFHV
/RDQVUHFHLYHGEDFN

16,415.97
 

Short Term Advances/


/RDQVUHFHLYHGEDFN

11,424.00
(2,563.50)

Short Term Advances/


/RDQVUHFHLYHG

5.13
(81.69)

Repayment of Short Term


$GYDQFHV/RDQVUHFHLYHG

- 3HUFHSW (QHUJ\ 3ULYDWH /LPLWHG ZHI WK


January, 2012)

Remuneration
Outstanding as at
30th June, 2013
Trade Receivables
Trade Payables

Associates and Joint Ventures:

6,058.92
(1,095.23)

/RQJ7HUP$GYDQFHV
/RDQVJLYHQ

- ,QGLJR (QHUJ\ 3ULYDWH /LPLWHG ZHI WK


January, 2012)

 9LGHRFRQ 0R]DPELTXH 5RYXPD  /LPLWHG ZDV D ZKROO\ RZQHG


VXEVLGLDU\ RI 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG XSWR WK
December, 2012. It became a wholly owned subsidiary of Videocon
0DXULWLXV(QHUJ\/LPLWHGZHIWK'HFHPEHU

Subsidiary $VVRFLDWHV
Key
Companies
Joint Management
Venture
Personnel
6,494.69
9.63
(2,560.92)
(90.42)

0.04
(8.40)

368.07


76.95

81.01
(43.07)

(68.34)
(20.53)



*RD (QHUJ\ 3ULYDWH /LPLWHG $VVRFLDWH   XSWR VW


March, 2012)



1RUWKZHVW (QHUJ\ 3ULYDWH /LPLWHG  $VVRFLDWH RI


3URFLHQW (QHUJ\  3ULYDWH /LPLWHG   XSWR WK
January, 2013)

/RQJ7HUP$GYDQFHV
/RDQVJLYHQ

47,512.23
(35,112.06)

Short Term Advances/


/RDQVJLYHQ

5,915.77
(14,289.70)

3.30
(371.33)



5DGLXP(QHUJ\3ULYDWH/LPLWHG$VVRFLDWH



9LGHRFRQ ,QQLW\ ,QIUDVWUXFWXUH 3ULYDWH /LPLWHG  -RLQW


9HQWXUH

Non Current Investments/


Share Application Money

46,440.10
(40,381.66)

0.08
(0.10)

$GYDQFHV/RDQVUHFHLYHG



,%9 %UDVLO 3HWUROHR /LPLWDGD   -RLQW 9HQWXUH RI


9LGHRFRQ(QHUJ\%UD]LO/LPLWHG

9.87
(81.69)


C)

iii) Key Management Personnel:











0U9HQXJRSDO1'KRRW&KDLUPDQ 0DQDJLQJ'LUHFWRU
0U 3UDGLSNXPDU 1 'KRRW  :KROH 7LPH 'LUHFWRU XSWR
14th August, 2012)
0U6XQLO.XPDU-DLQ6HQLRU9LFH3UHVLGHQW
0U6KHNKDU-\RWL9LFH3UHVLGHQW
0U&KDQGUDPDQL06LQJK9LFH3UHVLGHQW
0U-DLGHHS55DWKRUH6HQLRU9LFH3UHVLGHQW XSWRVW
March, 2013)
0U$EKLMLW.RWQLV9LFH3UHVLGHQW
0U$UXQ3DO9LFH3UHVLGHQW

)LJXUHVLQEUDFNHWDUHIRUWKH\HDUHQGHGVW'HFHPEHU
Material transactions with Related Parties during the period are:
i)

Revenue from Operations from Videocon Telecommunications


/LPLWHG` 51.21 Million (Previous year ` 335.80 Million on high
seas basis).

ii)

Other Income received from Videocon Hydrocarbon Holdings


/LPLWHG` 2,225.27 Million (Previous year ` Nil).

iii)

Reimbursement of Expenses from Videocon International


(OHFWURQLFV /LPLWHG ` 4,456.13 Million (Previous year ` Nil),
9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG ` 695.24 Million
(Previous year ` 1LO  DQG 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG
` 741.11 Million (Previous year ` Nil).

iv)

Subscription to Shares of Videocon International Electronics


/LPLWHG ` 10,000.00 Million (Previous year ` Nil), Videocon
7HOHFRPPXQLFDWLRQV /LPLWHG QHW RI 6KDUH $SSOLFDWLRQ 0RQH\
` 3,264.55 Million (Previous year ` 1LO  DQG /LEHUW\ 9LGHRFRQ
*HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG ` 2,749.90 (Previous
year ` 49.10 Million). Refund of Share Application Money from
9LGHRFRQ 2LO 9HQWXUHV /LPLWHG ` 9,000.00 Million (Previous
year ` 1LO  DQG &KKDWWLVJDUK 3RZHU 9HQWXUHV 3ULYDWH /LPLWHG
` 1,000.00 Million (Previous year ` Nil).

Y 

/RQJ 7HUP $GYDQFHV/RDQV *LYHQ WR 9LGHRFRQ ,QWHUQDWLRQDO


(OHFWURQLFV/LPLWHG` 19,103.13 Million (Previous year 2,444.64
0LOOLRQ  DQG 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG ` 9,713.01 Million
(Previous year ` 5,296.22 Million).

%  7UDQVDFWLRQVRXWVWDQGLQJEDODQFHVZLWK5HODWHG3DUWLHV
The Company has entered into transactions with certain related
parties during the period as listed below. The Board considers such
transactions to be in normal course of business:
(` in Million)
Particulars

Subsidiary $VVRFLDWHV
Key
Companies
Joint Management
Venture
Personnel

Nature of Transactions
Revenue from Operations
Other Income
Purchase of Goods/
Services

51.21
(424.75)
2,278.25

(89.75)

YL  6KRUW 7HUP$GYDQFHV/RDQV *LYHQ WR 9LGHRFRQ +\GURFDUERQ


+ROGLQJV /LPLWHG ` 2,380.65 Million (Previous year ` Nil) and
&KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG` 536.92 Million
(Previous year ` Nil).

51

ANNUAL REPORT 2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)


YLL  /RQJ 7HUP $GYDQFHV/RDQ 5HFHLYHG EDFN IURP 9LGHRFRQ
7HOHFRPPXQLFDWLRQV/LPLWHG` 16,415.97 Million (Previous year
` Nil).

Name of the Company

YLLL  6KRUW 7HUP $GYDQFHV/RDQ 5HFHLYHG EDFN IURP 9LGHRFRQ


*OREDO /LPLWHG ` 9,993.30 Million (Previous years ` Nil) and
9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG` 1,340.50 Million (Previous
year ` Nil).

9LGHRFRQ(QHUJ\%UD]LO/LPLWHG
9LGHRFRQ(QHUJ\/LPLWHG
Emerald Corporate Ventures
/LPLWHG XSWRWK-XQH 
(formerly Videocon Energy
9HQWXUHV/LPLWHG
9LGHRFRQ*OREDO/LPLWHG
Videocon Hydrocarbon Holdings
/LPLWHG
Videocon Indonesia Nunukan
/LPLWHG
9LGHRFRQ0R]DPELTXH5RYXPD
/LPLWHG
*RD(QHUJ\3ULYDWH/LPLWHG
5DGLXP(QHUJ\3ULYDWH/LPLWHG
9LGHRFRQ,QQLW\,QIUDVWUXFWXUH
3ULYDWH/LPLWHG

L[  6KRUW 7HUP$GYDQFHV/RDQV 5HFHLYHG IURP /LEHUW\ 9LGHRFRQ


*HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG ` 3.49 Million (Previous
year `1LO DQG9LGHRFRQ*OREDO/LPLWHG` 1.64 Million (Previous
year ` Nil).
[ 

5HSD\PHQW RI 6KRUW 7HUP $GYDQFHV/RDQV 5HFHLYHG IURP


3URFLHQW(QHUJ\3ULYDWH/LPLWHG` 62.96 Million (Previous year
` 1LO  DQG 9LGHRFRQ (OHFWURQLFV 6KHQ]HQ  /LPLWHG ` 13.99
Million (Previous year ` Nil).

43. Loans and Advances in the nature of Loans given to Subsidiaries


and Associates, etc.
a)

Loans and Advances in the nature of Loans:


i)

Long Term Loans and Advances:


(` in Million)
Name of the Company

ii)

As at
30th June,
2013

As at
31st Dec.,
2011

Videocon International
(OHFWURQLFV/LPLWHG

Subsidiary

31,719.83

12,616.70

9LGHRFRQ2LO9HQWXUHV/LPLWHG

Subsidiary

15,009.66

5,296.65

Videocon Telecommunications
/LPLWHG

Subsidiary

782.74

17,198.71

b)

Subsidiary
Subsidiary
Subsidiary

0.41

0.31

Datacom Telecommunications
3ULYDWH/LPLWHG
,QGLJR(QHUJ\3ULYDWH/LPLWHG
Jumbo Techno Services Private
/LPLWHG
/LEHUW\9LGHRFRQ*HQHUDO
,QVXUDQFH&RPSDQ\/LPLWHG
3HUFHSW(QHUJ\3ULYDWH/LPLWHG
3LSDYDY(QHUJ\3ULYDWH/LPLWHG
Prosperous Energy Private
/LPLWHG
Senior Consulting Private
/LPLWHG
8QLW\3RZHU3ULYDWH/LPLWHG
Videocon Electronics
6KHQ]KHQ /LPLWHG

Subsidiary

0.01

0.0004

Subsidiary
Subsidiary

0.01
-


0.01

Subsidiary

14.61

Subsidiary
Subsidiary
Subsidiary

1.03
1,475.42
417.37


1,550.99
409.42

Subsidiary

0.01

Subsidiary
Subsidiary

5.82

0.002


2,380.65

9,993.31


Subsidiary

1.17



Subsidiary

6.09



Associate
Associate
Joint
Venture

0.55
2.75

368.07
0.51
2.75

Investment by the loanee in the shares of the Company:


None of the loanees have made investments in the shares of the
Company.

44. Share of the Company in remaining reserves on proved and


SUREDEOHEDVLV DVSHU2SHUDWRUVHVWLPDWHV LQ5DYYD2LO *DVHOG
(Unincorporated) Joint Venture, relied upon by the auditors, being
technical evaluation/matter.

(` in Million)
As at
As at
30th June,
31st Dec.,
2013
2011
114.17
7.93
1,509.53
972.61

$SSOLHG(QHUJ\3ULYDWH/LPLWHG
Chhattisgarh Power Ventures
3ULYDWH/LPLWHG
&RPHW3RZHU3ULYDWH/LPLWHG

Subsidiary
Subsidiary

  /RDQV DQG$GYDQFHV VKRZQ DERYH WR VXEVLGLDULHV IDOO XQGHU WKH


FDWHJRU\RI/RDQVDQG$GYDQFHVLQQDWXUHRI/RDQVZKHUHWKHUHLV
no repayment schedule and are repayable on demand.

Short Term Loans and Advances:

Name of the Company

Subsidiary
Subsidiary
Subsidiary

(` in Million)
As at
As at
30th June,
31st Dec.,
2013
2011
4.08

0.01

1,340.50

Unit of measurement

As at
30th June, 2013

As at
31st Dec., 2011

Crude Oil

Million Metric Tonnes

0.85

1.53

Natural Gas

Million Cubic Metres

187.84

240.29

Particulars

45. a)

The Financial Institutions have a right to convert, at their option, the


whole outstanding amount of term loans or a part not exceeding 20%
of defaulted amount of loan, whichever is lower, into fully paid up Equity
Shares of the Company at par on default in payments/repayments of
three consecutive installments of principal and/or interest thereon or on
mismanagement of the affairs of the Company.
b) The Financial Institutions have a right to convert at their option, the
whole or a part of outstanding amount of Preference Shares, into
fully paid up Equity Shares of the Company as per SEBI guidelines,
on default in payment of dividend or a default in redemption of
Preference Shares or any combination thereof.
46. The Company has prepared the Consolidated Financial Statements
as per Accounting Standard (AS) 21 and accordingly the segment
LQIRUPDWLRQDVSHU$66HJPHQW5HSRUWLQJKDVEHHQSUHVHQWHGLQ
the Consolidated Financial Statements.
47. 7KHVHQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQWKHIRUPDWSUHVFULEHG
E\WKH5HYLVHG6FKHGXOH9,WRWKH&RPSDQLHV$FW7KHJXUHVIRU
the current period are for a period of 18 months as against 12 months in
SUHYLRXV\HDUDQGKHQFHDUHQRWFRPSDUDEOH3UHYLRXV\HDUJXUHVKDYH
EHHQUHFODVVLHGUHVWDWHGUHFDVWHGWRFRQIRUPWRWKHFODVVLFDWLRQRI
the current period.

As per our report of even date

For and on behalf of the Board

For KHANDELWAL JAIN & CO.


&KDUWHUHG$FFRXQWDQWV

For KADAM & CO.


&KDUWHUHG$FFRXQWDQWV

SHIVRATAN AGARWAL
3DUWQHU
Membership No. 104180

U. S. KADAM
3DUWQHU
Membership No. 31055

V. N. DHOOT
&KDLUPDQDQG0DQDJLQJ'LUHFWRU
VINOD KUMAR BOHRA
&RPSDQ\6HFUHWDU\

Place : Mumbai
Date : 29th November, 2013

52

S. PADMANABHAN
'LUHFWRU

AUDITORS REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS


To,
The Board of Directors
VIDEOCON INDUSTRIES LIMITED
1.

We have audited the attached Consolidated Balance Sheet of Videocon Industries Limited (the Company) and its subsidiaries, associates and joint
YHQWXUHVDVDWWK-XQH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVVDQGWKH&RQVROLGDWHG&DVK)ORZ6WDWHPHQWIRUWKHPRQWKVSHULRGHQGHG
RQWKDWGDWHDQQH[HGWKHUHWR7KHVH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVDUHWKHUHVSRQVLELOLW\RIWKH&RPSDQ\VPDQDJHPHQWDQGKDYHEHHQSUHSDUHG
E\WKHPRQWKHEDVLVRIVHSDUDWHQDQFLDOVWDWHPHQWVDQGRWKHUQDQFLDOLQIRUPDWLRQUHJDUGLQJFRPSRQHQWV2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQ
RQWKHVH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVEDVHGRQRXUDXGLW



:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK$XGLWLQJ6WDQGDUGVJHQHUDOO\DFFHSWHGLQ,QGLD7KHVH6WDQGDUGVUHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLW
WRREWDLQUHDVRQDEOHDVVXUDQFHZKHWKHUWKHQDQFLDOVWDWHPHQWVDUHSUHSDUHGLQDOOPDWHULDOUHVSHFWVLQDFFRUGDQFHZLWKDQLGHQWLHGQDQFLDOUHSRUWLQJ
IUDPHZRUNDQGDUHIUHHRIPDWHULDOPLVVWDWHPHQW$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVWEDVLVHYLGHQFHVXSSRUWLQJWKHDPRXQWVDQGGLVFORVXUHVLQ
WKHQDQFLDOVWDWHPHQWV$QDXGLWDOVRLQFOXGHVDVVHVVLQJWKHDFFRXQWLQJSULQFLSOHVXVHGDQGVLJQLFDQWHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODV
HYDOXDWLQJWKHRYHUDOO&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVSUHVHQWDWLRQ:HEHOLHYHWKDWRXUDXGLWSURYLGHVDUHDVRQDEOHEDVLVIRURXURSLQLRQ



D 

:HGLGQRWMRLQWO\DXGLWWKHQDQFLDOVWDWHPHQWVRIFHUWDLQ6XEVLGLDULHVZKRVHQDQFLDOVWDWHPHQWVUHHFWWRWDODVVHWV QHW RI` 155,061.25 Million


as at 30th June 2013/ 31st March 2013, total revenues (net) of `0LOOLRQDQGQHWFDVKRZVDPRXQWLQJWR` (2,900.01) Million for the
SHULRGHQGHGRQWKDWGDWH7KHVHQDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\RQHRIXV

E 

:H GLG QRW DXGLW WKH QDQFLDO VWDWHPHQWV RI FHUWDLQ 6XEVLGLDULHV DQG -RLQW 9HQWXUHV ZKRVH QDQFLDO VWDWHPHQWV UHHFW WRWDO DVVHWV QHW  RI
` 4,670.19 Million as at 30th June 2013/ 31st March 2013, total revenues (net) of `0LOOLRQDQGQHWFDVKRZVDPRXQWLQJWR` 506.37 Million
IRUWKHSHULRGHQGHGRQWKDWGDWHDQGQDQFLDOVWDWHPHQWVRIDVVRFLDWHVLQZKLFKWKHVKDUHRIORVVLV`0LOOLRQ7KHVHQDQFLDOVWDWHPHQWV
KDYHEHHQDXGLWHGE\RWKHUDXGLWRUVZKRVHUHSRUWVKDYHEHHQIXUQLVKHGWRXVDQGRXURSLQLRQLVEDVHGVROHO\RQWKHUHSRUWVRIWKHRWKHUDXGLWRUV



:H UHSRUW WKDW WKH &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV KDYH EHHQ SUHSDUHG E\ WKH &RPSDQ\ LQ DFFRUGDQFH ZLWK WKH UHTXLUHPHQWV RI WKH$FFRXQWLQJ
6WDQGDUG $6 RQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV$FFRXQWLQJ6WDQGDUG $6 RQ$FFRXQWLQJIRU,QYHVWPHQWVLQ$VVRFLDWHVLQ&RQVROLGDWHG
)LQDQFLDO6WDWHPHQWVDQG$FFRXQWLQJ6WDQGDUG $6 )LQDQFLDO5HSRUWLQJRI,QWHUHVWLQ-RLQW9HQWXUHVLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWV
RI,QGLDDQGRQWKHEDVLVRIWKHVHSDUDWHDXGLWHGQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVLQFOXGHGLQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV



:LWKRXWTXDOLI\LQJRXUUHSRUWZHGUDZDWWHQWLRQWR
D 

1RWH1RWRWKH)LQDQFLDO6WDWHPHQWV9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ DVXEVLGLDU\KDGEHHQDZDUGHGOLFHQVHVE\WKH'HSDUWPHQW


RI7HOHFRPPXQLFDWLRQV 'R7 WRSURYLGH8QLHG$FFHVV6HUYLFHV 8$6 LQWHOHFRPFLUFOHVLQ,QGLDZLWKHIIHFWIURPWK-DQXDU\ZKLFK
ZHUHYDOLGIRUDSHULRGRI\HDUV97/KDGDOVREHHQDOORFDWHGVSHFWUXPLQFLUFOHVDQGKDGODXQFKHGLWVFRPPHUFLDORSHUDWLRQVLQFLUFOHV

7KH+RQEOH6XSUHPH&RXUWRI,QGLDYLGHLWVRUGHUDQGMXGJPHQWGDWHGQG)HEUXDU\ -XGJPHQW LQWZRVHSDUDWHZULWSHWLWLRQVTXDVKHG


WKH8$6OLFHQVHVJUDQWHGRQRUDIWHUth-DQXDU\SXUVXDQWWRWZRSUHVVUHOHDVHVLVVXHGRQth-DQXDU\DQGWKHVXEVHTXHQWDOORFDWLRQ
RIVSHFWUXPWROLFHQVHHVZKLFKLQFOXGHGWKH8$6OLFHQVHVLVVXHGDQGDOORFDWLRQRIVSHFWUXPWRWKH97/

7KH +RQEOH 6XSUHPH &RXUW RI ,QGLD YLGH LWV -XGJPHQW KDG DOVR GLUHFWHG WKH &HQWUDO *RYHUQPHQW WR JUDQW IUHVK 8$6 OLFHQVHV DQG VSHFWUXP
DOORFDWLRQE\DXFWLRQ7KH'R7KDGLVVXHGD1RWLFHLQYLWLQJDSSOLFDWLRQVIRUDXFWLRQRIVSHFWUXP97/SDUWLFLSDWHGLQWKHVDLGDXFWLRQDQGKDVEHHQ
DZDUGHGWKH8QLHG/LFHQVHV $FFHVV6HUYLFHV IRUFLUFOHVZHIWK)HEUXDU\ZKLFKDUHYDOLGIRUDSHULRGRI\HDUV97/KDVDOVREHHQ
DOORWWHGVSHFWUXPLQWKHVHFLUFOHV97/LVFRQWLQXLQJLWVFRPPHUFLDORSHUDWLRQV

'XULQJWKHSHULRG97/KDVLQFXUUHGDQHWORVVRI`0LOOLRQUHVXOWLQJLQWRDFFXPXODWHGORVVHVRI` 40,344.93 Million as at 30th June, 2013.


97/KDVIXUWKHULVVXHGDQGDOORWWHGVKDUHFDSLWDOZKHUHE\WKHQHWZRUWKKDVEHFRPHSRVLWLYHDVRQWK-XQH7KHDELOLW\RI97/WRFRQWLQXH
DVDJRLQJFRQFHUQLVVXEVWDQWLDOO\GHSHQGHQWRQLWVDELOLW\WRIXQGLWVRSHUDWLQJDQGFDSLWDOH[SHQGLWXUHUHTXLUHPHQWV7KHPDQDJHPHQWRI97/LV
FRQGHQWRIPRELOL]LQJWKHQHFHVVDU\UHVRXUFHVIRUFRQWLQXLQJLWVRSHUDWLRQVDVSHUWKHEXVLQHVVSODQ$FFRUGLQJO\WKHQDQFLDOVWDWHPHQWVKDYH
EHHQSUHSDUHGE\97/RQDJRLQJFRQFHUQEDVLV

E 

1RWH1R % D WRWKH)LQDQFLDO6WDWHPHQWVUHJDUGLQJLQFRUSRUDWLRQRIWKH&RPSDQ\VVKDUHLQWKHRSHUDWLRQVRIWKHMRLQWYHQWXUHVEDVHGRQ
WKHVWDWHPHQWVUHFHLYHGIURPWKHUHVSHFWLYH2SHUDWRU7KH&RPSDQ\KDVUHFHLYHGWKHDXGLWHGQDQFLDOVWDWHPHQWVIRUWKHSHULRGXSWRVW0DUFK
DQGXQDXGLWHGQDQFLDOVWDWHPHQWVIRUWKHSHULRGVW$SULOWRWK-XQHLQUHVSHFWRI5DYYD2LO *DV)LHOG-RLQW9HQWXUHRQ
ZKLFKZHKDYHSODFHGUHOLDQFH

6.

As mentioned in Note No.13.1 to the Financial Statements, the Subsidiary, VTL has recognized net Deferred Tax Assets of ` 11,583.48 Million on the
unabsorbed depreciation and business losses, based on future business plan, estimated increase in subscribers base, additional capital infusion which
ZRXOGUHVWULFWIXUWKHUERUURZLQJVDQGUHODWHGFRVWVDQGWKDWWKHUHZRXOGEHVXIFLHQWSURWVWRDEVRUEWKHHQWLUHXQDEVRUEHGGHSUHFLDWLRQDQGEXVLQHVV
ORVVHV +RZHYHU LQ WKH DEVHQFH RI FRQYLQFLQJ VXSSRUWLQJ HYLGHQFH RI IXWXUH WD[DEOH SURWV ZH DUH XQDEOH WR FRPPHQW RQ WKH UHDVRQDEOHQHVV RI
UHFRJQLWLRQRIWKHVDLG'HIHUUHG7D[$VVHWVWKHHIIHFWZKHUHRILIDQ\RQWKHQDQFLDOVWDWHPHQWVIRUWKHSHULRGLVXQDVFHUWDLQDEOH



2Q WKH EDVLV RI WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV DQG RQ WKH FRQVLGHUDWLRQ RI WKH VHSDUDWH DXGLW UHSRUW RQ LQGLYLGXDO DXGLWHG QDQFLDO
VWDWHPHQWVRIWKH&RPSDQ\LWV-RLQW9HQWXUHVDQGLWVVXEVLGLDULHVZHDUHRIWKHRSLQLRQWKDWWKHDWWDFKHG&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVsubject
WRSDUDJUDSKDERYHWKHFRQVHTXHQWLPSDFWRIZKLFKRQWKHQDQFLDOVWDWHPHQWVLIDQ\LVXQDVFHUWDLQDEOHDQGUHDGZLWKWKHQRWHVDQGWKHVLJQLFDQW
DFFRXQWLQJSROLFLHVWKHUHRQJLYHDWUXHDQGIDLUYLHZLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLD
a.
E
F

in the case of the Consolidated Balance Sheet, of the state of affairs of the Company and its subsidiaries, associates and joint ventures as at
30th June, 2013;
LQWKHFDVHRIWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVVRIWKHFRQVROLGDWHGORVVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDVVRFLDWHVDQGMRLQW
ventures for the period ended on that date; and
LQWKHFDVHRIWKH&RQVROLGDWHG&DVK)ORZ6WDWHPHQWRIWKHFRQVROLGDWHGFDVKRZVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDVVRFLDWHVDQGMRLQW
ventures for the period ended on that date.

)RUKHANDELWAL JAIN & CO.


Chartered Accountants
)LUP5HJLVWUDWLRQ1R:

)RUKADAM & CO.


Chartered Accountants
)LUP5HJLVWUDWLRQ1R:

SHIVRATAN AGARWAL
Partner
0HPEHUVKLS1R

U.S.KADAM
Partner
0HPEHUVKLS1R

3ODFH0XPEDL
'DWH WK1RYHPEHU

53

ANNUAL REPORT 2013

CONSOLIDATED BALANCE SHEET AS AT 30TH JUNE, 2013


Particulars
I.

Note No.

EQUITY AND LIABILITIES


1) Shareholders' Funds
a) Share Capital
b) 5HVHUYHVDQG6XUSOXV

3
4

(` in Million)
$VDW
31st Dec., 2011

3,340.94
43,796.04
47,136.98
-

3,339.36
69,450.43



2,079.81

104.10

2)

Share Application Money Pending Allotment

3)

Minority Interest

4)

Non-Current Liabilities
a) /RQJ7HUP%RUURZLQJV
b) Deferred Tax Liability (Net)
c) /RQJ7HUP3URYLVLRQV

5
13
6

310,786.55
1,499.40
312,285.95

143,960.69
7,351.19
1,299.74
152,611.62

Current Liabilities
a) 6KRUW7HUP%RUURZLQJV
b) Trade Payables
c) 2WKHU&XUUHQW/LDELOLWLHV
d) Short Term Provisions

7

9
10

58,083.65
15,775.64
58,361.04
966.43
133,186.76
494,689.50

79,567.71
14,151.46
67,136.75
907.00
161,762.92
392,717.17

75,715.31
23,226.54
95,252.89
1,606.12
11,079.53
17,925.34
7,548.97
43,530.03
275,884.73



55,223.46
2,165.20
77.91




632.49
21,656.82
29,433.94
9,004.12
157,122.59
954.81
218,804.77
494,689.50




12,255.92
132,109.77
943.59
194,567.91
392,717.17

5)

TOTAL
II.

As at
30th June, 2013

ASSETS
1) Non-Current Assets
a) )L[HG$VVHWV
L  7DQJLEOH$VVHWV
LL  ,QWDQJLEOH$VVHWV
LLL  &DSLWDOZRUNLQSURJUHVV
b) 3UH2SHUDWLYH([SHQGLWXUH3HQGLQJ$OORFDWLRQ
c) *RRGZLOORQ&RQVROLGDWLRQ
d) 'HIHUUHG7D[$VVHWV 1HW
e) Non-Current Investments
f) /RQJ7HUP/RDQVDQG$GYDQFHV
2)

11

12
13
14
15

Current Assets
a) Current Investments
b) Inventories
c) 7UDGH5HFHLYDEOHV
d) &DVKDQG%DQN%DODQFHV
e) 6KRUW7HUP/RDQVDQG$GYDQFHV
f) 2WKHU&XUUHQW$VVHWV

16
17

19
20
21
TOTAL

6LJQLFDQW$FFRXQWLQJ3ROLFLHV
Notes forming part of the Financial Statements

1
WR

$VSHURXUUHSRUWRIHYHQGDWH

)RUDQGRQEHKDOIRIWKH%RDUG

For KHANDELWAL JAIN & CO.


Chartered Accountants

For KADAM & CO.


Chartered Accountants

SHIVRATAN AGARWAL
Partner
0HPEHUVKLS1R

U. S. KADAM
Partner
Membership No. 31055

V. N. DHOOT
Chairman and Managing Director

VINOD KUMAR BOHRA


Company Secretary

3ODFH0XPEDL
'DWH WK1RYHPEHU

54

S. PADMANABHAN
Director

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 1ST JANUARY, 2012 TO 30TH JUNE, 2013
(` in Million)
Particulars
I.

Note No.

22

/HVV([FLVH'XW\
1HW5HYHQXHIURP2SHUDWLRQV
2WKHU,QFRPH

23

Total Income

III.

Year ended
31st Dec., 2011

194,238.53



6,181.09



188,057.44

134,152.59

8,903.04

1,375.74

196,960.48



INCOME
5HYHQXHIURP2SHUDWLRQV

II.

Period ended
30th June, 2013

EXPENSES
Cost of Materials Consumed

56,643.70

40,562.96

3XUFKDVHRI6WRFNLQ7UDGH

59,134.62


(137.64)

&KDQJHV LQ ,QYHQWRULHV RI )LQLVKHG *RRGV :RUNLQ3URFHVV DQG


6WRFNLQ7UDGH

24

(578.21)

3URGXFWLRQDQG([SORUDWLRQ([SHQVHV2LODQG*DV

25

26,602.34

9,007.76

$FFHVV&KDUJHV/LFHQVH)HHVDQG1HWZRUN([SHQVHV

26

9,505.34



(PSOR\HH%HQHWV([SHQVH

27

5,708.88



)LQDQFH&RVWV



40,774.95



'HSUHFLDWLRQDQG$PRUWLVDWLRQ

11

13,255.70

9,160.75

2WKHU([SHQVHV

29

28,949.73

17,932.71

Total Expenses

239,997.05

147,256.44

3URW /RVV %HIRUH7D[

(43,036.57)

 

(5.09)

(0.19)

$GG6KDUHLQ3URW /RVV RI$VVRFLDWHV


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IV.

Tax Expenses

30

V.

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VI.

3URW /RVV IRUWKH3HULRG

VII.

Earnings per Equity Share of face value `HDFK

$GG0LQRULW\,QWHUHVW

(1,032.21)

49.74

(12,005.08)

1,964.31

(32,068.79)

 

3,807.60

5.21

(28,261.19)

(13,637.66)

(89.91)

(45.24)

31

Basic and Diluted


6LJQLFDQW$FFRXQWLQJ3ROLFLHV

1
WR

Notes forming part of the Financial Statements


$VSHURXUUHSRUWRIHYHQGDWH

)RUDQGRQEHKDOIRIWKH%RDUG

For KHANDELWAL JAIN & CO.


Chartered Accountants

For KADAM & CO.


Chartered Accountants

SHIVRATAN AGARWAL
Partner
0HPEHUVKLS1R

U. S. KADAM
Partner
Membership No. 31055

V. N. DHOOT
Chairman and Managing Director

VINOD KUMAR BOHRA


Company Secretary

3ODFH0XPEDL
'DWH WK1RYHPEHU

55

S. PADMANABHAN
Director

ANNUAL REPORT 2013

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED ON 30TH JUNE, 2013
Period ended on
30th June, 2013

(` in Million)
Year ended on
31st Dec., 2011

(43,036.57)

 

13,255.70
40,774.95
(0.10)
59.63
21.09
135.65
179.74
2.38
(5,175.91)
(1.73)
(16.15)
3,813.90
3,807.60
13,820.18

9,160.75


30.54
(6.36)

94.73
(743.09)

(279.59)
 
5.21


(A)

(759.41)
(1,460.57)
(30,932.78)
(11.22)
1,624.18
7,299.94
(10,419.68)
12,174.75
(22,594.43)

 
 
 
 
4,056.27

 
1,410.22
(64,329.17)

(B)

12,412.59
(75,906.68)
559.08
(5.09)
(1,032.21)
5,175.91
(1,209.56)
2,903.45
(11,001.62)
16.15
(68,087.98)

1,456.93
(49,034.43)
(1,332.69)
(0.19)
49.74
743.09

 
(39.59)
279.59
(53,245.02)

157.53
(155.95)
2,642.80
(1,204.10)
(5,448.74)
1,975.71
150,768.30
(21,484.06)
(40,774.95)
(211.25)
(31.33)
(12.91)
86,221.05
(4,461.36)
6,911.35
2,449.99
6,554.13
9,004.12

10.63
 
260.69


100.91
7.96


(1,133.67)
 
(350.55)
 
(0.25)
116,173.71
 

6,911.35
5,344.57
12,255.92

Particulars
A.

B.

C.

CASH FLOW FROM OPERATING ACTIVITIES


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Trade Payables
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CASH FLOW FROM FINANCING ACTIVITIES
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For KHANDELWAL JAIN & CO.


Chartered Accountants

For KADAM & CO.


Chartered Accountants

SHIVRATAN AGARWAL
Partner
0HPEHUVKLS1R

U. S. KADAM
Partner
Membership No. 31055

V. N. DHOOT
Chairman and Managing Director
VINOD KUMAR BOHRA
Company Secretary

3ODFH 0XPEDL
'DWH WK1RYHPEHU

56

S. PADMANABHAN
Director

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS


1.

SIGNIFICANT ACCOUNTING POLICIES:

A.

Basis of Consolidation:

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and reserve of the subsidiary company over the cost of
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E 

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date as that of the Company i.e., 30th June, 2013 except in
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F 

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companies and jointly controlled entities have been
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iv)

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its assets less liabilities as of the date of disposal is
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Subsidiary.

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the net income attributable to Shareholders of the
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vii)

Minority interest in the net assets of Consolidated


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attributable to the minority shareholders at the date on
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since the date the Parent Subsidiary relationship came
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operations of the investee.
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circumstances and are presented in the same manner
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insurance company, have been prepared under a
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assumptions that affect the reported balances of assets and
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of such estimates include provisions for doubtful debts,
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The excess of the cost to the Company of its investment


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57

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WD[HV QDQFLQJ FRVW DQG RWKHU LQFLGHQWDO H[SHQVHV UHODWHG

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


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Leasehold Land is amortised over the period of lease.

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does not include tax/duty credits availed.
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from the date of commencement of commercial operations.
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years.

E 

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the assets.

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E.

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of direct cost, attributable interest and related incidental
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commencement of commercial operations.
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at prescribed rates of revenue share in terms of the license
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I.

Impairment of Assets:

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Sheet date. In case of any such indication, the recoverable amount
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J.

Pre-Operative Expenditure
pending allocation:

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commencement of commercial operations.

K.

Investments:

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jointly controlled entities, the investment in such joint venture is
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F.

Exploration, Development Costs and Producing Properties:

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centre. The cost centre is not, normally, smaller than a country
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to commence commercial production, these costs are capitalised
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costs are successful.

during

construction

period

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stated at cost. The decline in the value of the investment,
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Securities Transaction Tax.

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Current Investments. Investments other than Current
,QYHVWPHQWVDUHFODVVLHGDV1RQ&XUUHQW,QYHVWPHQWV

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on evaluation by experts at current costs and is capitalised as
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basis (as applicable), in the revenue and Statement of
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a)

The Parent Company and Indian Subsidiary Companies


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method at the rates prescribed in the aforesaid Schedule or
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Inventories:

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all costs of purchase, conversion and other costs incurred in
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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


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Borrowing Costs:

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of inventory.

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Other Policies in respect of Insurance Business:


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premium (i.e., premium, net of reinsurance ceded) in respect
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Revenue Recognition:

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accrued at policy inception. Non-proportional reinsurance
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revision to, refunds or cancellations of premiums are
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and rate applicable.

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Foreign Currency Transactions:


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ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


Currency Monetary $VVHWV DQG /LDELOLWLHV DUH WUDQVODWHG DW
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on the date of transaction and on the date of settlement as
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the period.
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value as on the Balance Sheet date, in pursuance of the
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country.

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Research and Development:

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Income tax comprises of current tax and deferred tax. Provision for
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subject to the consideration of prudence. Deferred tax assets and
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present value of the minimum lease payments and are
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Warranty:

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of consumer electronics and home appliances products is made in
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evaluation and past experience.

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Prior Period Items:


Prior period items are included in the respective heads of accounts
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Provision, Contingent Liabilities and Contingent Assets:

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Liability in respect of leave encashment is determined
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Other Accounting Policies:

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principles.

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


2.

The companies which are included in the consolidation with their respective countries of incorporation and the percentage of ownership
interest therein of the Company as on 30th June, 2013, are as under:

Name of the Subsidiary

Country of Incorporation

Percentage of Ownership
Interest as at
30th June, 2013

31st Dec., 2011

&KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG

India

100%

100%

(DJOH(&RUS/LPLWHG XSWRWK-XQH

%ULWLVK9LUJLQ,VODQGV

100%

India

77.9%

100%

6XOWDQDWHRI2PDQ

100%

100%

3LSDYDY(QHUJ\3ULYDWH/LPLWHG

India

100%

100%

3URVSHURXV(QHUJ\3ULYDWH/LPLWHG

India

100%

100%

9LGHRFRQ(OHFWURQLFV 6KHQ]KHQ /LPLWHG


&KLQHVH1DPH:HL\RXNDQJ(OHFWURQLF 6KHQ]KHQ &R/WG

China

100%

100%

%ULWLVK9LUJLQ,VODQGV

100%

100%

India

100%

100%

Mauritius

100%

100%

/LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG
0LGGOH(DVW$SSOLDQFHV//&

9LGHRFRQ*OREDO/LPLWHG
9LGHRFRQ2LO9HQWXUHV/LPLWHG
9LGHRFRQ(VWHOOH/LPLWHG(1)
Videocon Ivory Limited (1)

Mauritius

100%

100%

9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG(1)

Cayman Islands

100%

100%

9LGHRFRQ-3'$/LPLWHG(2)

Cayman Islands

100%

100%

9LGHRFRQ,QGRQHVLD1XQXNDQ,QF (2)

Cayman Islands

100%

100%

%ULWLVK9LUJLQ,VODQGV

100%

100%

Cayman Islands

100%

100%
100%

9LGHRFRQ(QHUJ\%UD]LO/LPLWHG (2)
9LGHRFRQ$XVWUDOLD:$3/LPLWHG (2)
2LO6HUYLFHV,QWHUQDWLRQDO6$6 /LTXLGDWHGRQWK-XO\ (2)

)UDQFH

9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG ZHIWK'HFHPEHU (2)

Mauritius

100%

9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHG (3)

%ULWLVK9LUJLQ,VODQGV

100%

100%

(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG XSWRWK-XQH
IRUPHUO\9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG

%ULWLVK9LUJLQ,VODQGV

100%

0HUFXU\&RUSRUDWH9HQWXUHV/LPLWHG IRUPHUO\9LGHRFRQ2PDQ/LPLWHG 
(upto 20th June, 2013) (4)

%ULWLVK9LUJLQ,VODQGV

100%

9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG

India

100%

100%

Jumbo Techno Services Private Limited (5)

India

100%

99%

6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG (5)

India

100%

90%

Videocon Telecommunications Limited (5)

India

90.8%

99.9%

Datacom Telecommunications Private Limited (6)

India

90.8%

99.9%

9LGHRFRQ(QHUJ\/LPLWHG

India

100%

100%

3URFLHQW(QHUJ\3ULYDWH/LPLWHG(7)

India

100%

100%

$SSOLHG(QHUJ\3ULYDWH/LPLWHG 

India

100%

100%

8QLW\3RZHU3ULYDWH/LPLWHG(9)

India

51%

51%

&RPHW3RZHU3ULYDWH/LPLWHG(9)

India

51%

51%

,QGLJR(QHUJ\3ULYDWH/LPLWHG ZHIWK-DQXDU\ (10)

India

51%

3HUFHSW(QHUJ\3ULYDWH/LPLWHG ZHIWK-DQXDU\ (10)

India

51%

1DPHRIWKH$VVRFLDWH-RLQW9HQWXUH

Country of Incorporation

Percentage of Ownership
Interest as at
30th June, 2013

31st Dec., 2011

IBV Brasil Petroleo Limitada (11)

%UD]LO

50%

50%

9LGHRFRQ,QQLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG

India

50%

50%

*RD(QHUJ\3ULYDWH/LPLWHG XSWRVW0DUFK

India

26%

5DGLXP(QHUJ\3ULYDWH/LPLWHG

India

26%

26%

1RUWKZHVW(QHUJ\3ULYDWH/LPLWHG XSWRWK-DQXDU\ (12)

India

47%

Notes:
 6XEVLGLDU\RI9LGHRFRQ2LO9HQWXUHV/LPLWHG



6XEVLGLDU\RI9LGHRFRQ(QHUJ\/LPLWHG



6XEVLGLDU\RI9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG



6XEVLGLDU\RI3URFLHQW(QHUJ\3ULYDWH/LPLWHG



6XEVLGLDU\RI9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG



6XEVLGLDU\RI$SSOLHG(QHUJ\3ULYDWH/LPLWHG



6XEVLGLDU\RI9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG

 6XEVLGLDU\RI&RPHW3RZHU3ULYDWH/LPLWHG



6XEVLGLDU\RI9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG

 -RLQW9HQWXUHRI9LGHRFRQ(QHUJ\%UD]LO/LPLWHG

6.

Subsidiary of Videocon Telecommunications Limited

 $VVRFLDWHRI3URFLHQW(QHUJ\3ULYDWH/LPLWHG

61

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


3.

As at
30th June, 2013

(` in Million)
$VDW
31st Dec., 2011

Total

5,000.00
1,000.00
6,000.00

5,000.00
1,000.00
6,000.00

(a)

3,187.72
0.08
3,187.64

3,030.22
0.11
3,030.11

150.74

301.56

2.56

7.69

153.30
3,340.94

309.25
3,339.36

SHARE CAPITAL
Authorised:
 3UHYLRXV\HDU (TXLW\6KDUHVRI` 10/- each
 3UHYLRXV\HDU 5HGHHPDEOH3UHIHUHQFH6KDUHVRI` 100/- each
Issued, Subscribed and Paid-up:
Equity Shares
 3UHYLRXV\HDU (TXLW\6KDUHVRI` 10/- each fully paid-up.
/HVV&DOOVLQ$UUHDUVE\RWKHUV
Preference Shares
L   3UHYLRXV \HDU    &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI
` 33.32 each (Previous year `HDFK IXOO\SDLGXSUHGHHPDEOHDWSDURQVW2FWREHU
LL   3UHYLRXV \HDU    &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI ` 33.34
each (Previous year `HDFK IXOO\SDLGXSUHGHHPDEOHDWSDURQVW)HEUXDU\
(b)
Total (a+b)

3.1

As at 30th June, 2013

Reconciliation of the Number of Shares:


a)

` in Million

No. of Shares

` in Million

303,021,669

3,030.22

301,963,634

3,019.64

15,750,000

157.50





318,771,669

3,187.72

303,021,669

3,030.22

4,523,990

301.56

4,523,990

452.40

150.82



4,523,990

150.74

4,523,990

301.56

76,870

7.69



7.69

5.13

76,870

2.56



7.69

Equity Shares of `HDFK


2XWVWDQGLQJDWWKHEHJLQQLQJRIWKHSHULRG
,VVXHGGXULQJWKHSHULRG
2XWVWDQGLQJDWWKHHQGRIWKHSHULRG

b)

$VDWVW'HF

No. of Shares

8% Cumulative Redeemable Preference Shares


of ` 33.32 each (Previous year ` 66.66 each)
2XWVWDQGLQJDWWKHEHJLQQLQJRIWKHSHULRG
5HGHHPHGGXULQJWKHSHULRG
2XWVWDQGLQJDWWKHHQGRIWKHSHULRG

c)

8% Cumulative Redeemable Preference Shares


of ` 33.34 each (Previous year `HDFK
2XWVWDQGLQJDWWKHEHJLQQLQJRIWKHSHULRG
5HGHHPHGGXULQJWKHSHULRG
2XWVWDQGLQJDWWKHHQGRIWKHSHULRG

3.2

3.3

Rights, Preference and Restrictions:


a)

7KH&RPSDQ\KDVRQO\RQHFODVVRIHTXLW\VKDUHVKDYLQJSDUYDOXHRI`SHU6KDUH(DFKKROGHURI(TXLW\6KDUHVLVHQWLWOHGWRHTXDO
ULJKWRIYRWLQJDQGGLYLGHQG

b)

,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRI(TXLW\6KDUHVZLOOEHHQWLWOHGWRUHFHLYHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHU
GLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURI(TXLW\6KDUHVKHOGE\WKHVKDUHKROGHUV

c)

7KH3UHIHUHQFH6KDUHVGRQRWKDYHYRWLQJULJKWV7KH\KDYHSUHIHUHQFHRYHUHTXLW\VKDUHKROGHUDVWRGLYLGHQGDQGLQFDVHRIOLTXLGDWLRQ

Details of Shareholders holding more than 5% Shares:


As at 30th June, 2013
No. of Shares % of Holding

Name of Shareholders
a)

b)

c)

Equity Shareholders
a) 'RPH%HOO(OHFWURQLFV,QGLD3ULYDWH/LPLWHG
b) 3ODWLQXP$SSOLDQFHV3ULYDWH/LPLWHG
c) 6KUHH'KRRW7UDGLQJ$QG$JHQFLHV/LPLWHG
d) 6\QHUJ\$SSOLDQFHV3ULYDWH/LPLWHG
e) 9LGHRFRQ5HDOW\DQG,QIUDVWUXFWXUHV/LPLWHG

$VDWVW'HF
No. of Shares RI+ROGLQJ

19,741,049
15,604,666
28,404,836
16,010,575
63,570,518

6.19
4.90
8.91
5.02
19.94

19,067,113
15,604,666
26,015,207
16,010,575
63,566,495

6.29
5.15




8% Cumulative Redeemable Preference Shares


of ` 33.32 each (Previous year ` 66.66 each)
a) LIC of India Limited
b) ,'%,%DQN/LPLWHG

441,990
4,082,000

9.77
90.23

441,990


9.77
90.23

8% Cumulative Redeemable Preference Shares


of ` 33.34 each (Previous year `HDFK
*HQHUDO,QVXUDQFH&RUSRUDWLRQRI,QGLD/LPLWHG

76,870

100.00



100.00

62

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


As at
30th June, 2013

(` in Million)
$VDW
31st Dec., 2011

(a)

9.74
9.74

9.74
9.74

(b)

688.33
155.96
844.29

537.50



(c)

43,576.23
2,642.09
12.91
46,205.41
1.59
46,203.82


259.66
0.25

43,576.23
2.30
43,573.93

(d)

1,053.17
1,909.34
2,962.51

3,029.64
(1,976.47)
1,053.17

(e)

0.01
0.01

0.01
0.01

(f)

2,546.06
241.84
2,787.90



2,546.06

(g)

16,201.48
300.00
16,501.48


1,000.00


5,377.71
(28,261.19)
(22,883.48)


(13,637.66)
1,976.47
6,753.03

(h)

155.96
1,909.34
300.00
198.77
27.68
38.48
(25,513.71)


1,000.00
159.39
33.77
31.33
5,377.71

Total (a to h)

43,796.04

69,450.43

4. RESERVES AND SURPLUS


a)

b)

c)

Capital Reserve (including Capital Subsidy)


$VSHUODVW%DODQFH6KHHW
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d)

e)

f)

g)

h)

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$VSHUODVW%DODQFH6KHHW
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Balance available for Appropriations
Less: Appropriations
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7UDQVIHUWR%RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH
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(` in Million)
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Current

As at 30th June, 2013


Non-Current
Current

5. LONG-TERM BORROWINGS
a) Secured
Non-Convertible Debentures
Term Loans
i) 7HUP/RDQVIURP%DQNV
ii) 7HUP/RDQVIURP)LQDQFLDO,QVWLWXWLRQV
iii) ([WHUQDO&RPPHUFLDO%RUURZLQJV
iv) 9HKLFOH/RDQIURP%DQNV
v) )URP2WKHUV
vi) Deferred Payment Liabilities

21.60

(a)

276,657.05
15,019.23
151.79
0.05
7,146.20
298,974.32

29,419.33
1,099.35
589.41
130.67
31,238.76

91,156.44

1,164.44

75.25
99,700.02

16,334.73


76.74


(b)
Total (a+b)

11,652.34
115.59
27.66
16.64
11,812.23
310,786.55

2,000.00
8.78
2,008.78
33,247.54

6,749.94
10,423.73
27,046.07
40.93
44,260.67
143,960.69

30,331.35
15.51

49,305.10

b) Unsecured
5XSHH/RDQVIURP%DQNV
)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV
Compulsorily Convertible Debentures
/RDQIURP2WKHUV
Sales Tax Deferral

63

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)




5.1

Secured Loans:

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L 

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/LPLWHG$SSOLFRPS ,QGLD /LPLWHG6N\$SSOLDQFHV/LPLWHG7HFKQR(OHFWURQLFV/LPLWHG&HQWXU\$SSOLDQFHV/LPLWHG3((OHFWURQLFV
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RYHUHTXLW\VKDUHVRI9LGHRFRQ,QGXVWULHV/LPLWHG7UHQG(OHFWURQLFV/LPLWHGDQG9DOXH,QGXVWULHV/LPLWHGKHOGE\WKHPWKHSHUVRQDO
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refer Note No. 37)

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both present and future.

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YL 

/RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\PRUWJDJHRILPPRYDEOHDVVHWVDQGUVWFKDUJHRQPRYDEOHDVVHWVFDVKRZVDQG
LQWDQJLEOHDVVHWVSHUWDLQLQJWRWKH0:0XOWL&U\VWHOOLQH6LOLFRQ3KRWRYROWDLF7HFKQRORJ\3URMHFWDW:DURUD

YLL 

/RDQVDPRXQWLQJWR`0LOOLRQDUHVHFXUHGE\UVWpari-passuFKDUJHRQH[LVWLQJDQGIXWXUHDVVHWVRIWKH6XEVLGLDU\&RPSDQ\
YL]9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ DVVLJQPHQWRIDOOWHOHFRPOLFHQVHVKHOG97/E\ZD\RIWULSDUWLWHDJUHHPHQWWREH
H[HFXWHGEHWZHHQWKH'HSDUWPHQWRI7HOHFRPPXQLFDWLRQV97/DQG/HQGHUVDQGSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG
0U3UDGLSNXPDU1'KRRW

YLLL  /RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\PRUWJDJHDQGUVWFKDUJHRQHQWLUHLPPRYDEOHSURSHUWLHVERWKSUHVHQWDQGIXWXUH
RIWKH6XEVLGLDU\&RPSDQ\YL]&RPHW3RZHU3ULYDWH/LPLWHGUVWFKDUJHRQFDVKRZVUHFHLYDEOHVERRNGHEWVDQGUHYHQXHVUVW
FKDUJHRQHQWLUHLQWDQJLEOHDVVHWVERWKSUHVHQWDQGIXWXUHUVWFKDUJHE\ZD\RIK\SRWKHFDWLRQPRUWJDJHDVVLJQPHQWRIDOOWKHULJKWV
WLWOHV LQWHUHVW EHQHWV FODLPV DQG GHPDQGV LQ SURMHFW GRFXPHQWV DQG SRZHU SXUFKDVH DJUHHPHQW FOHDUDQFHV LQ OHWWHU RI FUHGLW
JXDUDQWHHSHUIRUPDQFHERQGFRUSRUDWHJXDUDQWHHSURYLGHGE\SURMHFWGRFXPHQWVUVWFKDUJHRQWUXVWDQGUHWHQWLRQDFFRXQWDQG
SHUVRQDOJXUDQWHHRI0U9HQXJRSDO1'KRRW
L[ 

/RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\PRUWJDJHDQGUVWFKDUJHRQHQWLUHLPPRYDEOHSURSHUWLHVERWKSUHVHQWDQGIXWXUHRI
WKH6XEVLGLDU\&RPSDQ\YL]8QLW\3RZHU3ULYDWH/LPLWHGUVWFKDUJHRQFDVKRZVUHFHLYDEOHVERRNGHEWVDQGUHYHQXHVUVWFKDUJH
RQHQWLUHLQWDQJLEOHDVVHWVERWKSUHVHQWDQGIXWXUHUVWFKDUJHE\ZD\RIK\SRWKHFDWLRQPRUWJDJHDVVLJQPHQWRIDOOWKHULJKWVWLWOHV
LQWHUHVWEHQHWVFODLPVDQGGHPDQGVLQSURMHFWGRFXPHQWVDQGSRZHUSXUFKDVHDJUHHPHQWFOHDUDQFHVLQOHWWHURIFUHGLWJXDUDQWHH
SHUIRUPDQFH ERQG FRUSRUDWH JXDUDQWHH SURYLGHG E\ SURMHFW GRFXPHQWV UVW FKDUJH RQ WUXVW DQG UHWHQWLRQ DFFRXQW DQG SHUVRQDO
JXUDQWHHRI0U9HQXJRSDO1'KRRW

[ 

/RDQV DPRXQWLQJ WR `  0LOOLRQ DUH VHFXUHG SULPDULO\ E\ SOHGJH RI VKDUHV RI WKH VXEVLGLDULHV RI 9LGHRFRQ +\GURFDUERQ
+ROGLQJV/LPLWHG 9++/ YL]9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHGDQG9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHGDVVLJQPHQWRIFHUWDLQ
UHFHLYDEOHVRI9++/DQGFKDUJHRYHUVSHFLHGEDQNDFFRXQWVPDLQWDLQHGZLWK6WDQGDUG&KDUWHUHG%DQN

6RPHRIWKHORDQVDUHDOVRVHFXUHGE\SOHGJHRIFHUWDLQLQYHVWPHQWVRIWKH&RPSDQ\
E 

([WHUQDO&RPPHUFLDO%RUURZLQJVDUHVHFXUHGE\DUVWUDQNLQJpari-passuFKDUJHRYHUDOOWKHSUHVHQWDQGIXWXUHPRYDEOHDQGLPPRYDEOH
[HGDVVHWV7KHORDQLVIXUWKHUVHFXUHGE\SHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW

64

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


F 

9HKLFOH/RDQVIURP%DQNVDUHVHFXUHGE\ZD\RIK\SRWKHFDWLRQRI9HKLFOHVDFTXLUHGRXWRIWKHVDLGORDQ7KHORDQVDUHDOVRVHFXUHGE\
SHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRW

G 

'HIHUUHG3D\PHQW/LDELOLWLHV
Videocon Telecommunications Limited has availed deferred payment option for amount payable to Department of Telecommunications
SHUWDLQLQJWR6SHFWUXP)HH7KHGHIHUUHGSD\PHQWOLDELOLWLHVLQFOXGLQJLQWHUHVWDUHUHSD\DEOHLQHTXDWHGDQQXDOLQVWDOOPHQWVFRPPHQFLQJ
IURPVW'HFHPEHU7KHDQQXDOLQVWDOOPHQWLVVHFXULWL]HGWKURXJKDQDQFLDOEDQNJXDUDQWHHRIDQDPRXQWRIDQQXDOLQVWDOOPHQWZKLFK
VKDOOEHUHQHZHGIRUDIXUWKHUSHULRGRIRQH\HDURQSD\PHQWRIHDFKLQVWDOOPHQW

5.2

5.3

Unsecured Loans:
D 

8QVHFXUHG5XSHH/RDQVIURP%DQNVDUHJXDUDQWHHGE\0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW

E 

7KH3DUHQW&RPSDQ\KDGGXULQJWKH\HDULVVXHG)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVRI86HDFK %RQGV GXHRQWK


'HFHPEHURXWRIZKLFK 3UHYLRXV\HDU %RQGVDUHRXWVWDQGLQJ
i)

The Bonds are convertible at the option of the bondholders at any time on or after 25th January, 2011 to 7 days before maturity date
LHWK'HFHPEHUDWD[HGH[FKDQJHUDWHRI`SHU86DQGDWLQLWLDOFRQYHUVLRQSULFHRI`SHUVKDUHEHLQJ
DWSUHPLXPRIRYHUUHIHUHQFHVKDUHSULFH7KHFRQYHUVLRQSULFHZLOOEHVXEMHFWWRDGMXVWPHQWIRUDPRQJRWKHUWKLQJVVXEGLYLVLRQRU
FRQVROLGDWLRQRIVKDUHVULJKWVLVVXHVFDSLWDOGLVWULEXWLRQVVWRFNGLYLGHQGVDQGRWKHUGLOXWLYHHYHQWV

LL 

7KH%RQGVDUHUHGHHPDEOHLQZKROHEXWQRWLQSDUWDWWKHRSWLRQRIWKH&RPSDQ\RQRUDIWHUWK'HFHPEHULIWKHFORVLQJSULFH
RIVKDUHVIRUHDFKRIWKHFRQVHFXWLYHWUDGLQJGD\VSULRUWRWKHGDWHRQZKLFKQRWLFHRIVXFKUHGHPSWLRQLVJLYHQZDVDWOHDVW
of the conversion price.

iii)

The Bonds are redeemable at maturity date i.e. on 16th December, 2015 at its principal amount, if not redeemed or converted earlier.

c)

0%, 11,559,100 Compulsorily Convertible Debentures (CCD) of face value of `HDFK7KH&&'ZLOOEHFRQYHUWHGZLWKRXWDQ\IXUWKHUDFW


RUDSSOLFDWLRQE\WKH&&'KROGHUVLQWRWKHHTXLW\VKDUHVRI`HDFKRIWKH6XEVLGLDU\&RPSDQ\8QLW\$SSOLDQFHV3ULYDWH/LPLWHGFUHGLWHG
as fully paid-up on or after 30th June, 2017.

G 

7KH3DUHQW&RPSDQ\KDVDYDLOHGLQWHUHVWIUHH6DOHV7D['HIHUUDOXQGHU6SHFLDO,QFHQWLYHWR3UHVWLJLRXV8QLW 0RGLHG 6FKHPH2XWRIWRWDO


RXWVWDQGLQJ`0LOOLRQLVUHSD\DEOHLQ)<`0LOOLRQLVUHSD\DEOHLQ)<DQGEDODQFHDPRXQWRI` 4.16 Million is
UHSD\DEOHLQ)<

0DWXULW\3UROHRI6HFXUHG/RDQV

Term Loans
IURP%DQNV
20,797.25

12,437.39


37,566.62
35,025.11

1,610.93


)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU
)LQDQFLDO<HDU

Term Loans from


Financial Institutions


1,359.16
1,746.51

2,735.10
2,301.75
2,051.44
452.53
30.75
-

(` in Million)
Vehicle Loan
IURP%DQNV


9.11
-

7KH 'HIHUUHG 3D\PHQW /LDELOLWLHV LQFOXGLQJ LQWHUHVW DUH UHSD\DEOH LQ  HTXDWHG DQQXDO LQVWDOOPHQWV RI `  0LOOLRQ FRPPHQFLQJ IURP
1st December, 2015.

6.

Total

As at
30th June, 2013
161.62
58.27
1,279.51
1,499.40

(` in Million)
$VDW
31st Dec., 2011
106.36
49.52

1,299.74

(a)

21,039.46
15,476.39
36,515.85

29,573.50



(b)
Total (a+b)

7,620.83
13,946.97
21,567.80
58,083.65

40,642.32
40,642.32
79,567.71

LONG-TERM PROVISIONS
3URYLVLRQIRU*UDWXLW\ 5HIHU1RWH1R%
3URYLVLRQIRU/HDYH(QFDVKPHQW 5HIHU1RWH1R%
3URYLVLRQIRU$EDQGRQPHQWDQG6LWH5HVWRUDWLRQ&RVWV

7.

SHORT-TERM BORROWINGS
Secured
/RDQIURP%DQNV
:RUNLQJ&DSLWDO/RDQVIURP%DQNV
Unsecured
/RDQIURP%DQNV
/RDQIURP2WKHUV

65

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


7.1

Secured Loans
D 

E 

6KRUW7HUP/RDQVIURP%DQNV
L 

/RDQVDPRXQWLQJWR`0LOOLRQDUHVHFXUHGE\VXEVHUYLHQWFKDUJHRQHQWLUHPRYDEOHVDQGFXUUHQWDVVHWVERWKSUHVHQWDQG
IXWXUHRIWKH&RPSDQ\DQGRWKHUERUURZHUVH[FHSWIRUWKHDVVHWVRI5DYYD2LO)LHOG7KHORDQVDUHIXUWKHUVHFXUHGE\VXEVHUYLHQW
FKDUJH RQ 9LGHRFRQ DQG .HQVWDU EUDQGV DQG LUUHYRFDEOH DQG XQFRQGLWLRQDO SHUVRQDO JXDUDQWHHV RI 0U 9HQXJRSDO 1 'KRRW DQG
0U3UDGLSNXPDU1'KRRW

LL 

/RDQVDPRXQWLQJWR`0LOOLRQLVVHFXUHGE\PRUWJDJHRISURSHUWLHVRZQHGE\WKH&RPSDQ\DQGRZQHGE\RWKHUV7KHORDQLV
IXUWKHUVHFXUHGE\SHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW

LLL 

)RUVHFXULW\RIORDQVDPRXQWLQJWR`0LOOLRQ5HIHU1RWH1R D  L 

LY 

)RUVHFXULW\RIORDQVDPRXQWLQJWR`0LOOLRQ5HIHU1RWH1R D  LL 

:RUNLQJ &DSLWDO /RDQV IURP %DQNV DUH VHFXUHG E\ K\SRWKHFDWLRQ RI WKH &RPSDQ\V VWRFN RI UDZ PDWHULDOV SDFNLQJ PDWHULDOV VWRFNLQ
SURFHVVQLVKHGJRRGVVWRUHVDQGVSDUHVERRNGHEWVRI*ODVV6KHOO'LYLVLRQRQO\DQGSHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG
0U3UDGLSNXPDU1'KRRW

7.2

Unsecured Loans

8QVHFXUHG/RDQVIURP%DQNVDUHVHFXUHGE\SHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRWDQGORDQVDPRXQWLQJ
to `0LOOLRQDUHIXUWKHUVHFXUHGE\PRUWJDJHRISURSHUWLHVRZQHGE\RWKHUVVLWXDWHGDW$KPHGDEDG$XUDQJDEDGDQG0XPEDL
(` in Million)

8.

As at
30th June, 2013

TRADE PAYABLES
0LFUR6PDOODQG0HGLXP(QWHUSULVHV

79.93

4.61

15,695.71



15,775.64

14,151.46

33,247.54

49,305.10

889.11



,QWHUHVWDFFUXHGEXWQRWGXHRQ%RUURZLQJV

3,250.36

513.53

,QWHUHVWDFFUXHGDQGGXHRQ%RUURZLQJV

4,674.09

483.66

436.10

10.44



&UHGLWRUVIRU&DSLWDO([SHQGLWXUH

9,735.73



2WKHU3D\DEOHV

6,070.11

6,902.97

58,361.04

67,136.75

198.77

159.39

27.68

33.77

2WKHUV
Total

9.

OTHER CURRENT LIABILITIES


&XUUHQWPDWXULWLHVRI/RQJWHUP%RUURZLQJV 5HIHU1RWH1R
%DQN2YHUGUDIWDVSHUERRNV

$GYDQFHVIURP&XVWRPHUVDQG8QHDUQHG,QFRPH
8QFODLPHG'LYLGHQG

Total

10.

$VDW
31st Dec., 2011

SHORT-TERM PROVISIONS
3URSRVHG'LYLGHQG(TXLW\6KDUHV
Proposed Dividend - Preference Shares
Provision for Tax on Dividend
3URYLVLRQIRU:DUUDQW\DQG0DLQWHQDQFH([SHQVHV 5HIHU1RWH1R
3UHPLXP'HFLHQF\5HVHUYH
3URYLVLRQIRU*UDWXLW\ 5HIHU1RWH1R%
3URYLVLRQIRU/HDYH(QFDVKPHQW 5HIHU1RWH1R%
Total

66

38.48

31.33

653.24

632.15

2.38

36.28

31.91

9.60



966.43

907.00

67

Leasehold Improvements

396.63



5.13

22.35

17,264.69

35,893.48

22,438.66

0.03



22,274.40



13,454.82

16.21



4,224.32

20,012.67

18,283.96



1,728.71

36.54

17.39

9.71


115.00

1,554.44

79.16

24.70

1.64

834.29

6,821.05

48.05

878.73

As at
30th June,
2013

21.20

1,292.29

401.59

468.84

469.85

172.92

1,576.39

1,241.09

28,873.38

451.21

4,847.31

22,333.77

95,252.89

127.10 148,845.02

3.93 164,729.76

(31.13)

(31.14)

0.01

35.06 135,856.38

0.31

1.01

7.24

(0.16)

9.99 122,871.18

16.67

Currency
'HGXFWLRQV
Translation
Adjustments
Adjustments







15.59

4.94

Additions

*URVV%ORFN

50,025.92

56,298.23

6,067.51

0.25

4,044.23



494.99

50,230.72

2.17

527.05

219.39











202.66





As at
31st Dec.,
2011
-

9,161.24

13,257.19

2,210.52

0.07



1,522.19

306.56

11,046.67

4.26





41.00





22.15



92.55

262.00

1.17

2,947.77

3,786.18

2,631.17

2,631.17

1,155.01

25.46



2.33











18.67

(0.02)

(0.02)

18.69

0.57

0.45



(0.13)



4.30

Currency
'HGXFWLRQV
Translation
Adjustments
Adjustments
-

56,298.23

65,787.91

5,646.84

0.30

4,425.93

419.06

801.55

60,141.07

7.00

659.90

240.20

223.16

325.60

113.63

1,560.62

54,184.67

275.43

2,538.71

12.15

As at
30th June,
2013

(` in Million)

95,252.89

92,546.79

98,941.85

23,226.54

450.91

421.38

21,914.71

439.54

75,715.31

14.20

632.39

161.39

245.68

144.25

59.29

15.77

68,686.51

558.86

4,282.34

35.90

878.73

As at
30th June,
2013

55,223.46

92,546.79

18,682.30



765.23



619.71

73,864.49

2.51

541.59

177.24

175.50



56.14

37.92



644.01



37.07



As at
31st Dec.,
2011

1HW%ORFN

Notes:
L  3ODQWDQG0DFKLQHU\ *URVV%ORFN LQFOXGHVDVVHWVFDSLWDOLVHGXQGHUQDQFHOHDVHRI`0LOOLRQ 3UHYLRXV\HDU`0LOOLRQ DQGFRUUHVSRQGLQJDFFXPXODWHGGHSUHFLDWLRQRI` 515.55 Million
(Previous year ` 274.24 Million).
LL  &RPSXWHU6RIWZDUH *URVV%ORFN LQFOXGHVDVVHWVFDSLWDOLVHGXQGHUQDQFHOHDVHRI` 10.71 Million (Previous year `1LO DQGFRUUHVSRQGLQJDFFXPXODWHGGHSUHFLDWLRQRI`0LOOLRQ 3UHYLRXV\HDU
` Nil).
LLL  2XWRIWKH'HSUHFLDWLRQIRUWKHSHULRGDQDPRXQWRI` 1.49 Million (Previous year `0LOOLRQ LVWUDQVIHUUHGWR3UH2SHUDWLYH([SHQGLWXUH3HQGLQJ$OORFDWLRQ




0.51

For the
period

'HSUHFLDWLRQ$PRUWLVDWLRQ,PSDLUPHQW
Addition on
Acquisition

*URVV%ORFNRI3ODQWDQG0DFKLQHU\LQFOXGHVWKHDPRXQWDGGHGRQUHYDOXDWLRQRQVW$SULODQGVW2FWREHU

55,223.46





Previous year as at
31st Dec., 2011

24,749.81

148,845.02

Total (ii)

Total (i+ii)





3URGXFLQJ3URSHUWLHV

2WKHUV



&RPSXWHU6RIWZDUH

/LFHQVH)HHV

1,114.70

Total (i)

Intangible Assets



124,095.21

2WKHUV

Vehicles

2IFH(TXLSPHQWV

366.67

356.31

Computers



1,576.39





)XUQLWXUHDQG)L[WXUHV

(OHFWULFDO,QVWDOODWLRQ

)XUQDFH

Plant and Machinery





%XLOGLQJ



Addition on
Acquisition

Leasehold Land

As at
31st Dec.,
2011

)UHHKROG/DQG

Tangible Assets

iii) &DSLWDO:RUNLQ3URJUHVV

ii)

i)

Particulars

11. FIXED ASSETS

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


(` in Million)

(` in Million)
12. PRE-OPERATIVE EXPENDITURE
PENDING ALLOCATION
Balance as per last Balance Sheet
Add: Incurred during the period/year
Less: Expenditure apportioned over cost
of Fixed Assets/Capital Work-in
Progress/Capital Advances
/HVV7UDQVIHUWR6WDWHPHQWRI3URWDQG
Loss
Total

As at
30th June,
2013

As at
31st Dec.,
2011

2,165.20
679.69
2,844.89
421.63

832.51
1,489.63
2,322.14
113.10

817.14

43.84

1,606.12

2,165.20

15. LONG TERM LOANS AND ADVANCES


(Unsecured, considered good)
Capital Advances
Security/Other Deposits
Advance Income Tax (Net of Provision)
MAT Credit Entitlement
Balance with Central Excise/Customs
Department
Loans and Advances to Others
Total

UNQUOTED - Others
In Units of Mutual Funds
In Bonds
In Government or Trust Securities

a) Deferred Tax Assets


346.11

64.02

,Q&HUWLFDWHRI'HSRVLWV
Total

ii) Unabsorbed Depreciation/Carried


Forward Losses

13,328.80

iii) Tax Credit Entitlement (Foreign


Country)

13,431.77

192.79

459.92

27,299.47

523.94

iv) Others
(a)

17. INVENTORIES
$VWDNHQYDOXHGDQGFHUWLHGE\WKH
Management)
Raw Materials including Consumables,
Stores and Spares
Materials in Transit and in Bonded
Warehouse
Work-in-Process
Finished Goods and Stock in Trade
Drilling and Production Materials
Crude Oil
Sim Card

b) Deferred Tax Liability


Related to Depreciation and
Amortisation on Fixed Assets
Net Deferred Tax Assets/(Liability)

9,374.13

7,875.13

(b)

9,374.13

7,875.13

(a-b)

17,925.34

(7,351.19)

Total
13.1 The Subsidiary, Videocon Telecommunications Limited (VTL) has
evaluated its future taxable income after it has been awarded the
8QLHG/LFHQVHV $FFHVVVHUYLFHV LQFLUFOHVZLWKHIIHFWIURPWK
February 2013 which are valid for a period of 20 years and also
been allotted 5Mhz spectrum in 1800 Mhz category in each of these
6 circles. The management is of the opinion that there is a virtual
certainty, based on the future business plan, estimated increase
in subscribers base and considering additional capital infusion into
the Company which would restrict further borrowings and related
FRVWVWKDWVXIFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVW
which the deferred tax assets can be realized. Accordingly, VTL
has recognized net deferred tax assets of `11,583.48 Million on the
unabsorbed depreciation and business losses.

18. TRADE RECEIVABLES (Unsecured)


Outstanding for a period exceeding six
months
Considered Good
Considered Doubtful
Less: Provision for Doubtful Debts
Others - Considered Good
Total
19. CASH AND BANK BALANCES
Cash and Cash Equivalents
Cash on hand
Cheques/Drafts on hand/in transit
Balances with Banks
- In Current Accounts
- In Fixed Deposits having maturity of 3
months or less

(` in Million)
14. NON-CURRENT INVESTMENTS

As at
30th June,
2013

As at
31st Dec.,
2011

38.04
176.93

50.84
167.06

1,281.74

1,330.42

530.76

417.53

1,020.38
4,452.67
48.45

0.38
3,908.30
0.54

5,000.00

QUOTED
i) In Equity Shares (Fully paid-up) - Trade
ii) In Equity Shares (Fully paid-up) Others
UNQUOTED
i) In Equity Shares (Fully Paid-up) Trade
ii) In Equity Shares (Fully Paid-up) Others
iii) In Preference Shares (Fully paid-up)
iv) In Debentures/Bonds
v) In Other Investments
SHARE APPLICATION MONEY
PENDING ALLOTMENT
Total

7,548.97

As at
31st Dec.,
2011
15,413.26
1,017.17
128.65
1,766.14

26,828.66
43,530.03

18,935.61
37,260.83

48.52
50.80
433.90

208.11
-

16. CURRENT INVESTMENTS

13. DEFERRED TAX ASEETS/(LIABILITY) - Net


L  ([SHQVHV FKDUJHG LQ WKH QDQFLDO
statements but allowable as
deduction in future years under the
Income Tax Act, 1961

As at
30th June,
2013
13,049.80
468.60
470.38
7.51
2,705.08

Sub-Total
Other Bank Balances
In Dividend Warrant Accounts
In Earmarked Accounts
In Fixed Deposits earmarked towards Site
Restoration
In Fixed Deposits (held as margin money
for credit facilities)
- Maturity 12 months or less
- Maturity more than 12 months

10,875.07

68

99.27

632.49

208.11

13,527.94

13,583.66

2,560.53

2,295.62

994.04
4,172.90
266.22
103.02
32.17

830.39
3,800.85
247.41
60.51
78.97

21,656.82

20,897.41

715.10
316.41
1,031.51
316.41
715.10
28,718.84

251.41
338.40
589.81
338.40
251.41
27,901.70

29,433.94

28,153.11

18.50
0.63

11.63
0.47

2,000.86
430.00

1,632.05
5,267.20

2,449.99

6,911.35

10.44
750.93
624.14

28.53
259.50
279.81

3,761.26
1,407.36

3,053.77
1,722.96

Sub-Total

6,554.13

5,344.57

Total

9,004.12

12,255.92

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


(` in Million)
20. SHORT TERM LOANS AND ADVANCES
(Unsecured, considered good)
Balance with Central Excise/Customs
Department
Deposits
Loans and Advances to Related Parties
(Refer Note No. 41)
Loans and Advances to Others
Total

As at
30th June,
2013

As at
31st Dec.,
2011

937.24

1,480.11

223.08
0.54

1.40
368.58

155,961.73

130,259.68

157,122.59

132,109.77

(` in Million)
Period ended
30th June,
2013

Year ended
31st Dec.,
2011

14,982.65
322.01
371.20
71.66
10,812.77
42.05
26,602.34

783.99
245.42
310.38
54.44
7,587.37
26.16
9,007.76

Access and Roaming Charges


License Fees and WPC Charges
Rent
Leased Line, Port and Bandwidth Charges
Power and Fuel
IT Expenses
Other Value Added Services Charges
Network Expenses- Others
Site Expenses- Managed Services
Freight and Carriage Expenses
Repairs and Maintenance- Site Buildings

3,207.91
352.00
3,266.62
986.05
1,145.77
177.13
96.37
190.62
60.48
4.65
17.74

4,830.65
246.71
3,012.58
909.12
1,002.23
532.26
100.39
234.01
502.10
11.34

Total

9,505.34

11,381.39

5,221.09

3,570.74

255.07

181.39

25. PRODUCTION AND EXPLORATION


EXPENSE - OIL AND GAS
Production and Exploration Expenses
Royalty
Cess
Production Bonus
*RYHUQPHQW6KDUHLQ3URW3HWUROHXP
Insurance Expenses
Total
26. ACCESS CHARGES, LICENSE FEES
AND NETWORK EXPENSES

21. OTHER CURRENT ASSETS


Interest Accrued
Insurance Claim Receivable
Other Receivables
Preliminary Expenses (to the extent not
written off)
Total

620.47

417.71

1.45

10.71

332.89

515.08

0.09

954.81

943.59
(` in Million)

22. REVENUE FROM OPERATIONS


Sale of Products/Services
Income from Other Services
Other Operating Revenue
Total

Period ended
30th June,
2013

Year ended
31st Dec.,
2011

193,752.71

136,692.28

89.75

38.44

396.07

114.35

194,238.53

136,845.07

27. EMPLOYEE BENEFITS EXPENSE


6DODU\:DJHVDQG2WKHU%HQHWV
Contribution to Provident Fund and Other
Funds (Refer Note No. 32A)
Staff Welfare Expenses
Total

22.1 Particulars of Sale of Products/


Services
Electrical and Electronic items
Crude Oil and Natural Gas
Telecommunication Services
Electrical Energy (Power)
Insurance Business - Premium
Earned (Net)

167,315.57

115,499.16

19,700.64

14,934.64

6,052.26

6,226.25

688.86

32.23

(4.62)

193,752.71

136,692.28

5,175.91

743.09

17.88

98.77

180.38

34.12

160.04

28. FINANCE COSTS


Interest Expenses
Other Borrowing Costs
Applicable Net Loss/(Gain) on Foreign
Currency Transactions
Total
29. OTHER EXPENSES
Power, Fuel and Water
Freight and Forwarding
Rent, Rates and Taxes
Repairs to Building
Repairs to Plant and Machinery
Other Repairs and Maintenance
Insurance
Advertisement and Publicity
Sales Promotion Expenses
Discount and Incentive Schemes
Bank Charges
Payment to Auditors'
Donation
Directors' Sitting Fees
Legal and Professional Charges
Liquidated Damages
Sim Cost
Customer Service Cost
Claim and Commission related to Insurance
Business
Royalty
Printing and Stationery
Warranty and Maintenance
Provision for Doubtful Debts
Loss on Sale/Discard of Assets, Capital
Work-in-Progress including Pre-Operative
Expenditure pending Capitalisation
Exchange Rate Fluctuation
2IFHDQG*HQHUDO([SHQVHV
Total

23. OTHER INCOME


Interest Income
Income from Investments and Securities
Division
3URWRQ6DOHRI)L[HG$VVHWV
Insurance Claim Received
Other Non Operating Income
Total

3,675.13

193.46

8,903.04

1,375.74

4,275.92

3,861.36

24. CHANGES IN INVENTORIES OF


FINISHED GOODS, WORK-INPROCESS AND STOCK-IN-TRADE
Closing Inventories
Finished Goods and Stock-in-Trade
Work-in-Process
Sub-Total

994.04

830.39

5,269.96

4,691.75

3,861.36

3,777.62

Opening Inventories
Finished Goods and Stock-in-Trade
Work-in-Process

830.39

776.49

Sub-Total

4,691.75

4,554.11

Total

(578.21)

(137.64)

69

232.72

123.12

5,708.88

3,875.25

38,716.00
1,081.22
977.73

15,385.48
178.40
-

40,774.95

15,563.88

1,432.19
2,098.95
686.48
25.11
91.21
225.43
114.46
2,689.14
215.55
7,136.27
386.40
29.07
89.91
2.34
452.46
1.30
44.60
190.53
4.00

860.71
1,442.57
383.25
16.58
63.95
213.60
78.78
1,615.11
125.77
5,725.54
677.63
20.23
50.54
1.40
897.40
127.98
347.66
-

262.39
42.26
1,332.68
179.74
3,813.90

180.76
42.89
819.81
94.73
-

5,314.66
2,088.70
28,949.73

3,013.23
1,132.59
17,932.71

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


30. TAX EXPENSES
Income Tax Expense includes Current Income Tax of ` 11,987.80 Million (Previous year ` 1,304.87 Million), Deferred Tax Credit ` 11,844.76 Million
(Previous year Debit of ` 602.00 Million), Tax Credit Entitlement (Foreign Company) of ` 11,985.83 Million (Previous year ` Nil) and Excess Provision of
Income Tax for earlier years written back ` 162.29 Million (Previous year Short Provision of Income Tax ` 57.44 Million).
(` in Million)
31. EARNINGS PER SHARE

Period ended
30th June, 2013

Year ended
31st Dec., 2011

(28,261.19)

(13,637.66)

L  1HW3URW /RVV DWWULEXWDEOHWR(TXLW\6KDUHKROGHUV




1HW3URW /RVV IRUWKHSHULRGDIWHUWD[DGMXVWPHQWVIRUHDUOLHU\HDUV


Less: Dividend on Preference Shares including Tax on the same



1HW3URW /RVV DWWULEXWDEOHWR(TXLW\6KDUHKROGHUV

ii) Weighted Average Number of Equity Shares considered for calculation of Basic EPS
Weighted Average Number of Equity Shares considered for calculation of Diluted EPS

32.38

39.25

(28,293.57)

(13,676.91)

314,683,004

302,308,789

314,683,004

302,308,789

(89.91)

(45.24)

(89.91)

(45.24)

(The effect of conversion option of FCCBs is anti dilutive in nature)


iii) Basic Earnings per Share of ` 10/- each (`)
Diluted Earnings per Share of ` 10/- each (`)
32. EMPLOYEE BENEFITS: Disclosure pursuant to Accounting Standard (AS) 15 (Revised):
$  'HQHG&RQWULEXWLRQ3ODQV
Amount of ` 255.07 Million (Previous year ` 181.39 Million) related to contribution to Provident and Other Funds are recognised as an expense and
VKRZQXQGHUWKHKHDG(PSOR\HH%HQHWV([SHQVH 5HIHU1RWH1R LQWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVV
B) 'HQHG%HQHW3ODQV

The amounts recognised in the Balance Sheet as at the end


of the period:
a) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQ
b) Fair value of Plan Assets
c) )XQGHG6WDWXV6XUSOXV 'HFLW
d) Net Assets/(Liability)
i) Non Current
ii) Current
II) 7KHDPRXQWVUHFRJQLVHGLQWKH6WDWHPHQWRI3URWDQG/RVV
for the period:
a) Current Service Cost
b) Interest Cost
c) Actuarial (Gains)/Losses
d) Past Service Cost
e) Actual return on Plan Assets
f) Total Expenses
III) The changes in Obligations during the period:
a) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQDWWKH
beginning of the period
b) Current Service Cost
c) Interest Cost
d) Actuarial (Gains)/Losses
e) Past Service Cost
f) %HQHW3D\PHQWV
g) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQDWWKHHQG
of the period
IV) The changes in Plan Assets during the period:
a) Plan Assets at the beginning of the period
b) Contribution by Employer
c) $FWXDO%HQHWVSDLG
d) Plan Assets at the end of the period
e) Actual return on Plan Assets
V) Actuarial Assumptions
a) Discount Rate
b) Mortality
c) Turnover Rate
d) Future Salary Increase

Gratuity
30th June, 31st Dec., 2011
2013

(` in Million)
Leave Encashment
30th June, 31st Dec., 2011
2013

I)

70

253.24
55.34
(197.90)

193.01
54.74
(138.27)

67.87
(67.87)

67.36
(67.36)

(161.62)
(36.28)

(106.36)
(31.91)

(58.27)
(9.60)

(49.52)
(17.84)

70.06
26.07
19.48
7.52
108.09

37.87
12.47
14.31
4.31
60.34

26.52
7.62
21.39
0.01
55.54

18.61
4.96
11.59
35.16

193.01

157.78

67.36

64.34

70.06
26.07
19.48
55.38
253.24

37.87
12.47
14.31
29.42
193.01

26.52
7.62
21.39
0.01
55.03
67.87

18.61
4.96
11.59
32.14
67.36

54.74
8.36
15.28
55.34
7.52

50.05
8.57
8.19
54.74
4.31

8% per annum
LIC (1994-96) Ultimate
5% at younger ages reducing to 1% at older ages
5% per annum

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


(` in Million)
33. CONTINGENT LIABILITIES AND COMMITMENTS

As at
30th June, 2013

As at
31st Dec., 2011

591.20

29,693.72

A) Commitments
Estimated amount of contract remaining to be executed on capital account
and not provided for (net of advances)
B) Contingent Liabilities not provided for:
i) Letters of Guarantees

39,315.56

49,655.61

ii) Letters of Credit opened (including Standby Letters of Credit)

21,668.51

29,921.44

502.46

447.02

b) Income Tax demands under dispute

3,149.41

494.74

c) Excise Duty and Service Tax demands and penalties under dispute

1,034.95

610.88

1,131.51

919.84

4,966.95

1,062.64

iii) Claims against the Company not acknowledged as debts


a) Custom Duty demands and penalties under dispute
[Amount paid under protest ` 3.41 Million (Previous year ` 0.07 Million)]

[Amount paid under protest ` 30.86 Million (Previous year ` 4.21 Million)]
d) Sales Tax demands under dispute
[Amount paid under protest ` 377.09 Million (Previous year ` 360.08 Million)]
e) Others
[Amount paid under protest ` 50.00 Million (Previous year ` 50.00 Million)]
f) Show Cause Notices (SCNs) have been served on the Operator of the Ravva Oil & Gas Field Joint Venture (Ravva JV) for non payment of
Service Tax and Educational Cess on various services for the period July 2003 to 31st March, 2012. The amount involved relating to Ravva
Block is ` 418.88 Million (Previous year ` 412.56 Million).
7KH2SHUDWRULVFRQWHVWLQJWKH6&1VGHPDQGVEHIRUH&RPPLVVLRQHURI6HUYLFH7D[DQGKDVOHGDSSHDOEHIRUH&(67$7%DQJDORUHDQGDOVR
writ petition before Honble High Court of Madras challenging service tax demands on some of the services and believes that its position is
likely to be upheld. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may result has
EHHQPDGHLQWKHDFFRXQWVDVWKHVDPHLVVXEMHFWWRDJUHHPHQWE\WKHPHPEHUVRIWKH-RLQW9HQWXUH6KRXOGLWXOWLPDWHO\EHFRPHSD\DEOHWKH
Companys share as per the participating interest would be upto ` 104.72 Million (Previous year ` 103.14 Million).
g) Disputed Income Tax demand amounting to ` 22.29 Million (Previous year ` 22.29 Million) in respect of certain payments made by Ravva Oil &
Gas Field Joint Venture is currently pending before the Honble High Court of Madras. The ultimate outcome of the matter cannot presently be
GHWHUPLQHGDQGQRSURYLVLRQIRUDQ\OLDELOLW\WKDWPD\UHVXOWKDVEHHQPDGHDVWKHVDPHLVVXEMHFWWRDJUHHPHQWE\WKHPHPEHUVRIWKH-RLQW
Venture. Should it ultimately become payable, the Companys share as per the participating interest would be upto ` 5.57 Million (Previous
year ` 5.57 Million).
34. There wHUHFHUWDLQGLVSXWHVZLWKWKH*RYHUQPHQWRI,QGLD *2, ZLWKUHVSHFWWRWKH3URGXFWLRQ6KDULQJ&RQWUDFWGDWHGWK2FWREHU 5DYYD36& 
pertaining to Ravva Oil & Gas Field which were referred to international arbitration for resolution. The Arbitral Tribunal has issued a Partial Award and is still
VHL]HGRIWKHPDWWHUDQGLV\HWWRLVVXHD)LQDO$ZDUGRWKHUWKDQIRUWKHGLVSXWHUHODWLQJWR%DVH'HYHORSPHQW&RVWV %'& IRUZKLFKDQDODZDUGZDVLVVXHG
on 18th January, 2011 substantially in favour of the Company. Issue relating to deductibility of ONGC Carry Costs arising out of the Partial Award was appealed
E\WKH*2,EHIRUHWKH0DOD\VLDQ$SSHOODWH$XWKRULWLHVZKLFKKDVVLQFHEHHQUHMHFWHG RQJURXQGVinter-aliaRIMXULVGLFWLRQDQGPDLQWDLQDELOLW\ E\VXFKDXWKRULWLHV
DQGLVQRZEHIRUHWKHQDODSSHOODWHDXWKRULW\LHWKH)HGHUDO&RXUWRI0DOD\VLD,VVXHUHODWLQJWRGHGXFWLELOLW\RIWKH%'&ZDVDSSHDOHGE\WKH*2,EHIRUHWKH
0DOD\VLDQ$SSHOODWH$XWKRULW\ZKLFKKDVVLQFHEHHQUHMHFWHGE\VXFKDXWKRULW\DQGLVQRZEHIRUHWKH&RXUWRI$SSHDODW0DOD\VLD3HQGLQJQDOUHVROXWLRQRIWKH
disputes, certain amounts have been short paid by GOI Nominees which have been disputed by the Company and the Company is seeking refund of amounts
excessively deducted. Based on legal advice, the Company believes its contentions will be upheld. Any further sum required to be paid or returnable in respect
of such disputes in accordance with the determination of the amount by the Honble Arbitral Tribunal/relevant courts in this regard shall be accounted for on the
QDORXWFRPHLQWKRVHPDWWHUV
35. 9LGHRFRQ7HOHFRPPXQLFDWLRQV /LPLWHG 97/  D VXEVLGLDU\ KDG EHHQ DZDUGHG OLFHQVHV E\ WKH 'HSDUWPHQW RI7HOHFRPPXQLFDWLRQV 'R7  WR SURYLGH
8QLHG$FFHVV6HUYLFHV 8$6 LQWHOHFRPFLUFOHVLQ,QGLDZLWKHIIHFWIURPWK-DQXDU\ZKLFKZHUHYDOLGIRUDSHULRGRI\HDUV97/KDGDOVR
been allocated spectrum in 20 circles and had launched its commercial operations in 17 circles.


7KH+RQEOH6XSUHPH&RXUWRI,QGLDYLGHLWVRUGHUDQGMXGJPHQWGDWHGQG)HEUXDU\ -XGJPHQW LQWZRVHSDUDWHZULWSHWLWLRQVTXDVKHGWKH8$6


licenses granted on or after 10th January, 2008 pursuant to two press releases issued on 10th January, 2008 and the subsequent allocation of spectrum
to licensees which included the 21 UAS licenses issued and allocation of spectrum to the VTL.
The Honble Supreme Court of India vide its Judgment had also directed the Central Government to grant fresh UAS licenses and spectrum allocation by
DXFWLRQ7KH'R7KDGLVVXHGD1RWLFHLQYLWLQJDSSOLFDWLRQVIRUDXFWLRQRIVSHFWUXP97/SDUWLFLSDWHGLQWKHVDLGDXFWLRQDQGKDVEHHQDZDUGHGWKH8QLHG
Licenses (Access Services) for 6 circles w.e.f. 16th February, 2013 which are valid for a period of 20 years. VTL has also been allotted spectrum in these
6 circles. VTL is continuing its commercial operations.
During the period, VTL has incurred a net loss of ` 12,036.14 Million resulting into accumulated losses of ` 40,344.93 Million as at 30th June, 2013.
VTL has further issued and allotted share capital whereby the net worth has become positive as on 30th June, 2013. The ability of VTL to continue as a
JRLQJFRQFHUQLVVXEVWDQWLDOO\GHSHQGHQWRQLWVDELOLW\WRIXQGLWVRSHUDWLQJDQGFDSLWDOH[SHQGLWXUHUHTXLUHPHQWV7KHPDQDJHPHQWRI97/LVFRQGHQWRI
PRELOL]LQJWKHQHFHVVDU\UHVRXUFHVIRUFRQWLQXLQJLWVRSHUDWLRQVDVSHUWKHEXVLQHVVSODQ$FFRUGLQJO\WKHQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGE\
VTL on a going concern basis.

36. The DoT had issued demand notices for Liquidated Damages aggregating to ` 534.50 Million for 20 out of the 21 circles (all the circles except Delhi)
DOORWWHGWR97/RQDFFRXQWRIGHOD\LQPHHWLQJUROORXWREOLJDWLRQVDVVWLSXODWHGLQWKH8QLHG$FFHVV6HUYLFH/LFHQVH 8$6/  VLQFHTXDVKHGYLGH
MXGJHPHQWGDWHGQG)HEUXDU\RI+RQEOH6XSUHPH&RXUW $JDLQVWWKHVHGHPDQGQRWLFHV97/KDVSDLGDWRWDOVXPRI` 419.30 Million of which it
has charged `0LOOLRQWRWKH6WDWHPHQWRI3URWDQG/RVVIRUWKH\HDUHQGHGVW'HFHPEHUDQGWKHUHPDLQLQJDPRXQWRI` 249.80 Million
KDVEHHQVKRZQXQGHU/RDQVDQG$GYDQFHVDVWKHVDPHDUHGLVSXWHGDQGSDLGXQGHUSURWHVW

71

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


a)

B.

VTL challenged before the Telecom Dispute Settlement Appellate


7ULEXQDO 7'6$7 WKHFODLPRI/LTXLGDWHG'DPDJHVLQUHVSHFWRI
circles (i.e. Andhra Pradesh, Assam, Haryana, Jammu & Kashmir,
Karnataka, Kolkata, Madhya Pradesh, North East, Uttar Pradesh
 (DVW DQG :HVW %HQJDO  VHHNLQJ LQWHULP VWD\ DQG QDOO\ VHWWLQJ
aside the demand, inter alia on the ground that (1) there has been
a delay in the allocation of start-up spectrum; (2) delay in SACFA
clearance should have been calculated on the actual maximum
delay and not the average delay; and (3) delay in meeting 10% rollout obligations was on account of introduction by the DoT of new
and onerous conditions in the license agreement (e.g. LI Testing,
security clearance of equipment, etc.).

E  7KH7'6$7KDVSDVVHGDQRUGHUDQGMXGJPHQWRQWK-DQXDU\
2012 whereby it has set aside the demands of DoT in respect of
10 circles and directed DoT to give opportunity to the licensee
before raising these fresh demands for liquidated damages. The
+RQEOH 7'6$7 YLGH LWV VDLG MXGJPHQW KDV DOVR GLUHFWHG 'R7 WR
refund the amount of ` 242.30 Million paid by VTL as liquidated
damages in respect of 10 circles along with 12% interest and VTL
has been directed to deposit bank guarantees for the amount of
liquidated damages originally demanded. The order of the TDSAT
dated 13th January, 2012 has been challenged by the DoT before
the Honble Supreme Court and by an order dated 23rd November,
2012 the Honble Supreme Court has admitted the appeal and has
passed an interim order staying the interest payable on the principal
DPRXQWLQWHUPVRIWKHRUGHUDQGMXGJHPHQWGDWHGWK-DQXDU\
2012 passed by TDSAT.
c)

Unincorporated Joint Ventures:


a)

The Company has participating interest of 25% in Ravva Oil


and Gas Field Joint Venture (JV) through a Production Sharing
Contract (PSC). Other members of the JV are Oil and Natural
Gas Corporation Limited, Cairn India Limited (formerly Cairn
Energy India Pty Limited) and Ravva Oil (Singapore) Pte.
Limited. The parties have pursuant to the PSC, entered into
a Joint Operating Agreement. Cairn India Limited is now the
Operator (Cairn Energy India Pty Limited was the Operator
upto 15th October, 2012).

b)

The Company had participating interest of 8.4% in Block


WA-388-P in exploration permit for a term of 6 years from
28th August, 2006. The Joint Venture (JV) comprised of the
&RPSDQ\2LOH[/LPLWHG*XMDUDW6WDWH3HWUROHXP&RUSRUDWLRQ
Limited, Hindustan Petroleum Corporation Limited, Bharat
Petroleum Corporation Limited, Sasol Petroleum Australia
/LPLWHGDQG$SDFKH1RUWKZHVW3W\/LPLWHG $SDFKH $SDFKH
was the Operator with 40% interest in JV. The Petroleum
Exploration Permit WA-388-P expired on 27th August, 2012
and ceased to be inforce.

c)

On 15th November, 2006, the consortium, comprising


9LGHRFRQ-3'$/LPLWHG 9LGHRFRQ-3'$ RQHRIWKH
wholly owned subsidiaries, Oilex (JPDA 06-103) Limited as
Operator, Bharat PetroResources JPDA Limited and GSPC
(JPDA) Limited, was allotted the petroleum block JPDA 06103, under a Production Sharing Contract (PSC) by the Timor
Sea Designated Authority. This block is located in the Timor
Sea between Australia and Timor-Leste. Videocon JPDA had
originally a participating interest of 25% in the PSC. Oilex has
farmed-out 15% of its 25% Participating Interest to Japan
Energy. Videocon JPDA has farmed-out 5% of its Participating
,QWHUHVW WR 3DQ 3DFLF 3HWUROHXP RI $XVWUDOLD UHGXFLQJ WKH
same to 20%.

VTL has also challenged the claim of Liquidated Damages in


UHVSHFWRIFLUFOHV LH%LKDU*XMDUDW.HUDOD2ULVVD5DMDVWKDQ
Tamil Nadu, Uttar Pradesh-West) before the TDSAT, seeking interim
stay and setting aside the demand, inter alia on the similar grounds.
VTL is hopeful that similar order may be passed by Honble TDSAT
as passed in its order dated 13th January, 2012.

7KHQDOGHPDQGVSD\DEOHE\97/LIDQ\LVWKHUHIRUHXQDVFHUWDLQDEOH

Out of the four commitment wells, two exploration wells at Lore


and Lolotoe were drilled unsuccessfully. Autoridade Nacional
do Petroleo (ANP) has agreed to a 12 months extension to the
SULPDU\([SORUDWLRQSHULRGVXEMHFWWRDUHOLQTXLVKPHQWRI
the PSC area. The Joint Venture (JV) has proposed to drill one
out of the two remaining commitment wells in lieu of excess
seismic data acquired, to which ANP has reserved its position
until the results of the drilling of the third commitment well
are available. The JV has further acquired 200 sq. kms. 3D
Seismic Survey in the northern part of the Block and based
on processing thereof, decision to spud third commitment
exploration well at Bazartete prospect has been taken.

37. The Parent Company alongwith the subsidiary Videocon International


Electronics Limited and 11 other entities (collectively referred to as
2EOLJRUV RU LQGLYLGXDOO\ DV %RUURZHU  H[HFXWHG )DFLOLW\ $JUHHPHQW
with the consortium of existing domestic rupee term lenders, under
the obligor/co-obligor structure, wherein all the Rupee Term Loans of
the Obligors are pooled together. The Borrower entities are Videocon
Industries Limited, Value Industries Limited, Trend Electronics Limited,
KAIL Limited, Millennium Appliances India Limited, Applicomp (India)
Limited, Sky Appliances Limited, Techno Electronics Limited, Century
Appliances Limited, PE Electronics Limited, Next Retail India Limited,
Evans Fraser and Co. (India) Limited and Videocon International
Electronics Limited (VIEL). As per the said Facility Agreement, the Parent
&RPSDQ\LVDJHQWRIWKH2EOLJRUVDQGKDVEHHQUHIHUUHGWRDV2EOLJRU
Agent. The Rupee Term Loans have to be utilised for the purpose
PHQWLRQHGLQWKH)DFLOLW\$JUHHPHQWZKLFKLVPDLQO\IRUUHQDQFLQJRI
existing Rupee Term Loans of the Obligors. Accordingly, the Rupee Term
Loans of ` 20,439.54 Million have been allocated to respective Obligors
based on their outstanding amount as on 31st December, 2011. As the
Parent Company and VIEL are co-obligors, they are contingently liable
in respect of the borrowings of other Obligors/Borrowers to the extent
of outstanding balance of Rupee Term Loans as on 30th June, 2013 of
` 17,919.40 Million (Previous year ` Nil).

d)

Total 28 wells drilled to date, of which 10 Exploration Wells and


12 Appraisal Wells were successful in locating enough Natural
*DVWRVXSSRUWODUJHFRPPHUFLDOO\YLDEOH/1*3URMHFWV

38. Joint Venture Disclosure:


A.

Videocon Mozambique Rovuma 1 Limited (VMRL), one of


the wholly owned subsidiaries, has executed a participation
agreement with Anadarko Mozambique Area 1 Limitada, a
wholly owned subsidiary of Anadarko Petroleum Corporation,
USA. Pursuant to this Agreement, VMRL has acquired
10% participating interest in the Oil Block covering Area 1
Offshore of the Rovuma Block, Republic of Mozambique. The
Agreement was closed on 26th December, 2008 (the Closing
Date).

7KH )LQDQFLDO 6WDWHPHQWV UHHFW WKH VKDUH RI WKH *URXS LQ WKH
assets and the liabilities as well as the income and the expenditure
of Joint Venture Operations on a line-by-line basis. The Group
incorporates its share in the operations of the Joint Venture based
on statements of account received from the Operator. The Group
KDVLQWHUPVRI6LJQLFDQW$FFRXQWLQJ3ROLF\1R ( UHFRJQLVHG
abandonment costs based on the technical assessment of current
costs as cost of producing properties and has provided Depletion
WKHUHRQ XQGHU 8QLW RI 3URGXFWLRQ PHWKRG DV SDUW RI 3URGXFLQJ
Properties in line with the Guidance Note on Accounting of Oil
and Gas Producing Activities issued by the Institute of Chartered
Accountants of India.

*DV LV ORFDWHG LQ WKH 3URVSHULGDGH DQG *ROQKR$WXP


Discovery Areas. The Prosperidade Discovery Area is a
straddling resources shared by the Area1 JV Partners and
Area4 JV Partners, led by ENi.
For Prosperidade Discovery Areas, a Pre-Unit and Cooperation
Term Sheet has been executed on 17th December, 2012
by and between Anadarko Mozambique Area1 Limitada, on
behalf of Area1 JV Parties and Eni East Africa on behalf of
Area 4 JV Parties, to develop and produced in a manner that
unitizes the Straddling Reservoir under reasonable terms
and conditions, in compliance with applicable Mozambican
Petroleum Laws and Regulations. Area 1 and Area 4, located

72

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


During drilling of Wahoo #5, oil and gas shows have been
reported within the Coquina section. The well logs have
also indicated Oil saturation in the interval 5,188.76 to
5,295.14 metres.

offshore Mozambique, comprise multiple hydrocarbon


reservoirs, some of which are fully contained within each area,
this agreement only concerns those reservoirs that straddle
the boundary of the two areas.
The LNG park plan has been evolved which envisages the
development, construction and operation of an LNG park
comprising LNG trains and common facilities that will provide
liquefaction services to Operators for potential capacity of up
to 50 MMTPA.
Mozambique LNG is emerging as a global LNG leader with
up to 65+ Tcf of recoverable natural gas resources discovered
to date in the Offshore Area 1 of Mozambique. By the end of
2013, the JV will have invested approximately $3 billion (gross),
DQGZLOOKDYHPDGHVLJQLFDQWDGYDQFHPHQWVLQDZRUOGVFDOH
/1*GHYHORSPHQWZLWKUVWFDUJRHVH[SHFWHGLQDQGD
design that facilitates future expansions of up to 50 MMPTA.
7KH-9KDVDOUHDG\GLVFRYHUHGVXIFLHQWUHVRXUFHVWRVXSSRUW
a development of this scale and is continuing to explore in the
Offshore Area 1.
e)

C.

On 4th September 2009, Videocon Indonesia Nunukan Inc.


(VIN), one of the wholly owned subsidiaries, has executed
a Farmout Agreement with Anadarko Indonesia Nunukan
Company - a wholly owned subsidiary Anadarko Petroleum
Corporation, USA along with the related Joint Operating
Agreement. The transaction was completed on 28th December
2009 (the Closing Date). Pursuant to this agreement, VIN has
acquired a 12.50% participating interest in the Production
Sharing Contract, covering the area referred to as Nunukan
Block, located offshore Indonesia, with effect from 1st August
2009 (the Effective Date). Other members of the consortium
are Anadarko Indonesia Nunukan Company, PT Medco E&P
Nunukan and BPRL Ventures Indonesia, BV (a step down
wholly owned subsidiary of Bharat Petroleum Corporation
Limited). Following Anadarkos sale of all the issued share
capital in Nunukan Block, PSC to PT Pertamina Hulu Energi
3+(1&  HIIHFWLYH WK )HEUXDU\  3+(1& EHFDPH
new Operator. Badik-1 well intersected 133 net feet of Oil
DQG JDV SD\ ZKLFK KDV EHHQ QRWLHG DV D GLVFRYHU\ 
sq. km. 3D seismic data has been acquired in the Block to
locate possible well location and identify further leads and
prospects for drilling two appraisal wells and one commitment
exploration well in the exploration phase.

7KHUVWH[SORUDWLRQZHOOZDVWDNHQXSE\WKH-9DW%DUUD
LQ%ORFN6($/0UHVXOWLQJLQDGLVFRYHU\QRWLHGRQ
27th October, 2010.

In November, 2012 the discovery well #1-SES-166,


LQIRUPDOO\ FDOOHG &XPEH WKH UVW H[SORUDWLRQ ZHOO
drilled in block SEAL-M-349, located 9.4 kms northeast
WR WKH GLVFRYHU\ ZHOO )DUIDQ GULOOHG UHFHQWO\ LQ %ORFN
SEAL-M-426 in Sergipe Concession and 109 km. from
WKHFLW\RI$UDFDMXLQZDWHUGHSWKRIPHWUHV7KHZHOO
proved presence of sandstone reservoirs saturated with
light hydrocarbons in the Maastrichtian and Campanian
sections with gross pay thickness of 98 metres in intervals
of 4,578 to 4,605 metres (net pay of 17 metres) and 5,321
to 5,635 metres (net pay of 24 metres) respectively.
The discovery in Cumbe augments the three earlier
discoveries of Maastrichtian gas & condensate (Barra)
and Campanian light oil (Barra, Barra-1 and Farfan) in
the Sergipe Concession. Furthermore, the discovery of
light oil in the Maastrichtian indicates presence of multiple
pools of hydrocarbon, thus upgrading the potential of the
6($/6HUJLSH&RQFHVVLRQVLJQLFDQWO\

IBV Brasil Petroleo Limitada (IBV), a company incorporated


LQ %UD]LO LV    MRLQW YHQWXUH EHWZHHQ 9LGHRFRQ (QHUJ\
Brazil Limited (VEBL), a wholly owned subsidiary of the
Company and Bharat PetroResources Limited, a wholly
owned subsidiary of Bharat Petroleum Corporation Limited.
IBV has interests in following four concessions with ten deep
water offshore exploration blocks in Brazil.
i)

Sergipe Concession: Sergipe Blocks are Located in the


North-Eastern offshore of Brazilian Basin. BM-SEAL-11
Concession has 4 blocks and covers an area of 2,831 sq.
km., in the Deep Waters of Sergipe Basin with Petrobras
as JV Partner and Operator has witnessed Discoveries
in the Barra, Farfan, Cumbe, Papangu and Poco Verde
which are all in different stages of Appraisal/Evaluation
Phases along with neighbouring Joint Venturers and
heading towards commercialization. BM-SEAL-11 is
going to become Oil, Gas and Condensate Field. VEBL
has 20% participating interest in the Sergipe Concession

In October, 2012 hydrocarbons discovery was made


during drilling of well 1-BRSA-1083-SES (1-SES-167),
LQIRUPDOO\NQRZQDV)DUIDQVLWXDWHGLQDZDWHUGHSWKRI
 PHWUHV ORFDWHG  NP IURP WKH FLW\ RI$UDFDMX
The Farfan well is about 21 km. southeast to the Barra
Exploration Well 1-SES-158 (Barra). The discovery
at Farfan evidences of oil found at the depth of 5,582
metres during well drilling, analysis of electric logs and
XLGVDPSOHVUHFRYHUHG$K\GURFDUERQFROXPQRIDERXW
44 metres gross and 40 metres net which is formed by
porous sandstone carriers of light hydrocarbons as
tested.

Incorporated Jointly Controlled Entities:


a)

ii)

Well BRSA-1131-SES (known as Papangu) was drilled


GXULQJ WKH VHFRQG H[SORUDWLRQ SHULRG ZLWK WKH REMHFWLYH
to test the presence of HC in stratigraphic traps mapped
at Campanian sandstones of the Middle Fm. Calumbi.
About 100 metres thick sandstones and conglomerates
reservoir with good porosity and permeability was
encountered in the target zone, but it is water wet. The
well was further deepened to explore possible carbonate
reservoirs/deltaic sandstones of Albian age. From 6,380
metres thick sandstone rocks with good gas shows (up
122 UGTs) were encountered which continued up to the
TD of 6,556 metres. Accordingly, the Notice of Discovery
was sent to ANP on 27th February, 2013.

Campos Concession: A discovery of hydrocarbons has


been made in Wahoo well prospect (BMC-30 Concession)
in the Campos Basin. VEBL has 12.50% participating
interest in the Wahoo Concession. The Concession is
SUHVHQWO\ LQ YH \HDU (YDOXDWLRQ 3KDVH 'LVFRYHULHV
announced in Appraisal Wells Wahoo #2 & Wahoo #3. DST
has been completed in Wahoo Exploration Well. These
Discoveries are in the Pre-Salt Upper-Sag Carbonates,
of Aptian Age. Drilling of appraisal well Wahoo#4, with
oil column similar to Wahoo#1, was completed on 11th
December, 2012. Wahoo #5 Appraisal Well was spudded
on 17th June, 2013 and drilling was completed on 2nd
October, 2013. The drilling result of the well has proved
beyond doubt the extent of the Upper Sag pay towards
the NE of the Wahoo main structure. The success of the
Wahoo #5 well as oil bearing has lowered the geological
uncertainty and thus the resources can be upgraded to a
higher level.

Poco Verde Joint Appraisal Area is a straddling resources


area shared by the BM-SEAL-11 and BM-SEAL-4
Concessioners, both operated by Petrobras. Petrobras
KDV SURSRVHG D MRLQW DSSUDLVDO SODQ FRYHULQJ %ORFN
SEAL-M-590 in BM-SEAL-4 and Block SEAL-M-497 in
BM-SEAL-11 Concessions and for Campanian discovery
of the well Verde (1-SES-159), which was drilled during
 LQ WKH DGMDFHQW FRQFHVVLRQ %06($/ 3% 
& OVL 25%). Well Verde had encountered 11.8 metres of

73

ANNUAL REPORT 2013

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)


Gas Block covering Area 1 Offshore of the Rovuma Block, Republic of
Mozambique for a base consideration of US$ 2,475.00 Million. However,
pending closure of the transaction, Videocon Mozambique Rovuma 1
Limited continues to be subsidiary of the Videocon Mauritius Energy
Limited.

net oil pay (44 degree API) in Paleocene and 3.8 metres
of net gas pay in Campanian. Fluid samples were taken
from respective intervals.
LLL  3RWLJXDU &RQFHVVLRQ 7KH UVW SKDVH RI H[SORUDWLRQ LQ
Potiguar Concession located in the North-eastern region
of Brazil, has been extended with a commitment to drill
exploration well in Block POT-M-760. VEBL has 10%
participating interest in the Potiguar Concession.

41. Related Party Disclosures:


As required under Accounting Standard 18 on Related Party
'LVFORVXUHVWKHGLVFORVXUHRIWUDQVDFWLRQZLWKUHODWHGSDUWLHVDVGHQHG
in the Accounting Standard are given below:

The Concession has 6 prospects in 2 different blocks,


with a total area of 1,535 sq. km. is in the 1st Phase of
exploration. One pre-existing well (1-CES-154) drilled in
Block 663. Ararauna commitment well drilled/spudded on
11th February, 2013 and was completed in August, 2013.
Drilling results are under study.

a)

i)

Associates:

Radium Energy Private Limited - Associate - 26%

Espirito Santos Concession: Located along the Brazilian


Continental Margin, extending from the central-southern
part of Espirito Santos State to the southern part of Bahia
State. The concession Blocks cover an area of 1,645 sq.
km.

Goa Energy Private Limited - Associate - 26% (upto 1st March,


2012)

Northwest Energy Private Limited - Associate - 47% (upto 7th


January, 2013)

5HTXHLMDR:HOOGULOOHGLQ(60%ORFNZDVFRPSOHWHG
on 2nd September, 2012 which encountered thin oil zones
in the target Aptian sands and in fractured basement. ES-9DUHLQGLVFXVVLRQZLWK$13DERXWDMRLQW(YDOXDWLRQ
3ODQZLWKWKHDGMRLQLQJ%ORFNLQ(6&RQFHVVLRQ

ii)

Key Management Personnel:

Mr. Venugopal N. Dhoot - Chairman & Managing Director



0U 5DMNXPDU 1 'KRRW  &KDLUPDQ  0DQDJLQJ 'LUHFWRU


(Videocon Telecommunications Limited)

Grana Padano Well drilled announces the discovery of


a new oil accumulation (15API) in the post-salt layer of
Esprito Santo Basin, in Concession BM-ES-24 (Block
ES-M-661), located 58 km from the city of Vitria, state of
Esprito Santo. ANP has approved the Evaluation Plan.

Mr. Pradipkumar N. Dhoot - Whole Time Director (Videocon


Hydrocarbon Holdings Limited)

Mr. Sunil Kumar Jain - Senior Vice President

Mr. Shekhar Jyoti - Vice President

Anadarko Corporation U.S.A. through its Brazilian subsidiary


is the operator in Campos Concession whereas Petroleo
Brasiliero S.A. is the operator in the other three Concessions.

Mr. Chandramani M. Singh - Vice President

Mr. Jaideep R. Rathore - Senior Vice President (upto 31st


March, 2013)

iv)

E  9LGHRFRQ ,QQLW\ ,QIUDVWUXFWXUHV 3ULYDWH /LPLWHG LV D   


-RLQW 9HQWXUH &RPSDQ\ LQFRUSRUDWHG LQ ,QGLD ZLWK ,QQLW\
Infotech Parks Limited to carry on the business of infrastructure
development like construction of IT/ITes Parks, Biotech Parks
etc. The Joint Venture Company has not commenced its
commercial operations.
F 

b)

7KH QDQFLDO LQWHUHVW RI WKH *URXS LQ WKH MRLQWO\ FRQWUROOHG
LQFRUSRUDWHG HQWLWLHV EDVHG RQ QDQFLDO VWDWHPHQW UHFHLYHG
from these Joint Venture entities are as under:
(` in Million)
Group's share in
Assets
Liabilities
Income
Expenses
Tax

D.

List of Related Parties where control exists and related parties with
whom transactions have taken place and relationship:

30th June, 2013


32,600.90
31,672.85
-



0U$EKLMLW.RWQLV9LFH3UHVLGHQW

Mr. Arun Pal - Vice President



0U 5RRSDP $VWKDQD  &KLHI ([HFXWLYH 2IFHU /LEHUW\


Videocon General Insurance Company Limited )

Transactions/outstanding balances with Related Parties:


The Company has entered into transactions with certain related
parties during the period as listed below. The Board considers such
transactions to be in normal course of business:

31st Dec., 2011


18,984.69
17,992.60
(379.58)

Particulars
Nature of Transactions
Reimbursement of Expenses

The estimated amount of commitment of the Group towards


contribution in various Joint Ventures for next year based on
minimum work program is ` 29,898.56 Million (Previous year
` 18,461.94 Million).

Short Term Advances/Loans given


Short Term Advances/Loans received back

Associates

9.63
(90.42)
0.04
(5.90)
368.08
(-)

Remuneration

39. During the period, the Subsidiary Company Videocon Hydrocarbon


Holdings Limited (VHHL) has sold and transferred its entire shareholding
in Videocon Mozambique Rovuma 1 Limited to its subsidiary Videocon
Mauritius Energy Limited for a consideration of US$ 2,141.16 Million
as per the agreement dated 28th December, 2012 after obtaining
approval of the Government of Republic of Mozambique and payment
RIDSSURSULDWHLQFRPHWD[7KHUHVXOWDQWSURWRQVDOHRILQYHVWPHQWRI
860LOOLRQEHLQJXQUHDOLVHGSURWKDVEHHQHOLPLQDWHGLQWKLV
FRQVROLGDWHGQDQFLDOVWDWHPHQWV

Outstanding as at 30th June, 2013


Short Term Advances/Loans given
Investments
c)

(` in Million)
Key
Management
Personnel

145.27
(53.49)
0.54
(368.58)
0.03
(0.05)

Material transactions with Related Parties during the period are:


Reimbursement of Expenses from Goa Energy Private Limited
` 9.63 Million (Previous year ` 90.42 Million); Short Term Advances/
Loans Given to Radium Energy Private Limited ` 0.04 Million
(Previous year ` 0.51 Million) and Goa Energy Private Limited ` Nil
(Previous year ` 5.39 Million); Short term Advances/Loans received
back from Goa Energy Private Limited ` 368.07 Million (Previous
year ` Nil).

40. The Subsidiary Company Videocon Mauritius Energy Limited alongwith


its holding company Videocon Hydrocarbon Holdings Limited (subsidiary
of the Company) have entered into a Share Sale and Purchase
Agreement on 25th June, 2013 with ONGC Videsh Limited and OIL India
Limited for sale of the entire shareholding in Videocon Mozambique
Rovuma 1 Limited, which owns 10% participating interest in Oil &

74

44. a)

42. The effect of acquisition and disposal of subsidiaries during the


period on the Consolidated Financial Statements is as follows:

i)

Lease payments under cancellable leases are recognised as an


H[SHQVHVLQWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVV

ii)

The maximum obligation on long-term non-cancellable operating


leases entered on or after 1st April 2001 payable as per the rentals
stated in respective agreements are as follows:

(` in Million)

Name of the Company


a)

b)

Acquisitions/Incorporations
Videocon Mauritius Energy
Limited
Indigo Energy Private Limited
Percept Energy Private
Limited
Disposals/Cessation
Eagle E Corp Limited
Oil Services International
S.A.S
Emerald Copoprate Ventures
Limited (formerly Videocon
Energy Ventures Limited)
Mercury Corporate Ventures
Limited (formerly Videocon
Oman 56 Limited)

Effect on
Consolidated
3URW /RVV

Net Assets
As at
30th June,
2013

(6,390.99)

(7,023.52)

(` in Million)

a)
b)
c)
d)
e)

Amount at the beginning of


the period
Additional provision made
during the period
Amount used
Unused amount reversed
during the period
Amount at the end of the
period

As at
30th June,
2013

Minimum Lease Payments


(0.29)
(0.02)

(0.21)
(1.52)

(0.08)
0.34

(1,047.08)
-

(0.09)

9.75

0.13

(0.16)

b)

43. As required by Accounting Standard 29 Provisions, Contingent


/LDELOLWLHV DQG &RQWLQJHQW$VVHWV LVVXHG E\ WKH ,QVWLWXWH RI &KDUWHUHG
Accountants of India, the disclosure with respect to Provision for
Warranty and Maintenance Expenses is as follows:

Particulars

Operating Lease:

Period ended
30th June,
2013
632.15

(` in Million)
Year ended
31st Dec.,
2011
638.51

653.24

632.15

602.89
29.26

602.82
35.69

653.24

632.15

As at
31st Dec.,
2011

Not later than 1 year

137.60

73.77

Later than 1 year and not later than


5 years

549.11

404.01

More than 5 years

269.59

397.52

Total

956.30

875.30

The Subsidiary Company viz. Videocon Telecommunications


Limited (VTL) has entered into composite IT outsourcing
DJUHHPHQWVZKHUHLQYHQGRUVKDYHVXSSOLHGWKH[HGDVVHWVDQG
IT related services to VTL. Based on the risk and rewards incidental
WR WKH RZQHUVKLS WKH [HG DVVHW DQG OLDELOLW\ DUH UHFRUGHG DW WKH
fair value of the leased assets at the time of the receipt of the
assets, since it is not possible for VTL to determine the extent of
[HGDVVHWVDQGVHUYLFHVXQGHUWKHFRQWUDFWDWWKHLQFHSWLRQRIWKH
FRQWUDFW6XFK[HGDVVHWVUHFHLYHGKDYHEHHQDFFRXQWHGIRUDV
QDQFHOHDVH7KHVHDVVHWVDUHGHSUHFLDWHGRYHUWKHVWDWHGXVHIXO
lives applicable to similar assets of VTL. Since the entire amount
SD\DEOHWRYHQGRUVWRZDUGVWKHVXSSO\RI[HGDVVHWVDQGVHUYLFHV
during the period is accrued, the disclosures as per Accounting
Standard 19 are not applicable.

45. The outstanding balances of certain Trade Receivables, Trade Payables,


'HSRVLWV$GYDQFHVDQG2WKHU&XUUHQW$VVHWV/LDELOLWLHVDUHVXEMHFWWR
FRQUPDWLRQ DQG UHFRQFLOLDWLRQ LI DQ\ +RZHYHU LQ WKH RSLQLRQ RI WKH
PDQDJHPHQWDGMXVWPHQWLIDQ\ZLOOQRWEHPDWHULDO
46. In the opinion of the Board, the value on realisation of Current Assets,
Loans and Advances in the ordinary course of the business would not
be less than the amount at which they are stated in the Consolidated
Balance Sheet and the provision for all known and determined liabilities
is adequate and not in excess of the amount reasonably required.

47.

Segment Information:

7KH&RPSDQ\DQGLWVVXEVLGLDULHVKDYHLGHQWLHGIRXUUHSRUWDEOHVHJPHQWVYL]&RQVXPHU(OHFWURQLFVDQG+RPH$SSOLDQFHV&UXGH2LODQG1DWXUDO*DV
7HOHFRPPXQLFDWLRQVDQG3RZHU6HJPHQWVKDYHEHHQLGHQWLHGDQGUHSRUWHGWDNLQJLQWRDFFRXQWQDWXUHRISURGXFWVDQGVHUYLFHVWKHGLIIHULQJULVNVDQG
return.
D 

6HJPHQW UHYHQXH DQG H[SHQVHV LQFOXGH WKH UHVSHFWLYH DPRXQWV LGHQWLDEOH WR HDFK RI WKH VHJPHQWV RQ WKH EDVLV RI UHODWLRQVKLS WR RSHUDWLQJ
activities of the segment as also amounts allocated on a reasonable basis. Revenue and expenses which relate to enterprise as a whole and are
QRWDOORFDEOHWRDVHJPHQWRQUHDVRQDEOHEDVLVKDYHEHHQGLVFORVHGDV8QDOORFDEOH

b)

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other corporate
DVVHWVDQGOLDELOLWLHVWKDWFDQQRWEHDOORFDWHGEHWZHHQWKHVHJPHQWDUHGLVFORVHGDV8QDOORFDEOH

c)

Primary Segment Information - Business segment:


(` in Million)

Particulars

Consumer Electronics
Crude Oil and
Telecommunications
Power
Others
Total
and Home Appliances
Natural Gas
Period
Year
Period
Year
Period
Year
Period
Year
Period
Year
Period
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011

i) Segment Revenue
- External
167,800.19 115,651.15
- Inter Segment
Total Segment
167,800.19 115,651.15
ii) Segment Result before Interest 16,143.89 12,313.78
Less: Finance Costs
Add: Other Unallocable Income/
(Expenses)

19,700.64
19,700.64
(7,626.35)
-

14,934.64
6,053.46
6,227.05
14,934.64
6,053.46
6,227.05
4,771.93 (15,190.67) (12,393.32)
-

75

688.86
688.86
367.03
-

32.23
32.23
(25.14)
-

(4.62)
(4.62)
(610.22)
-

- 194,238.53 136,845.07
- 194,238.53 136,845.07
(5.01) (6,916.32)
4,662.24
- 40,774.95 15,563.88
4,654.70
(826.47)

ANNUAL REPORT 2013


(` in Million)

Particulars

3URW /RVV EHIRUH7D[DWLRQ


$GG6KDUHLQ3URW /RVV RI
Associates
$GG3URW /RVV RQ'LVSRVDO
Dilution of holding in
Subsidiaries/Associates
Tax Expenses
3URW /RVV EHIRUH0LQRULW\
Interest
Add: Minority Interest
3URW /RVV IRUWKHSHULRG\HDU

Consumer Electronics
Crude Oil and
Telecommunications
Power
Others
Total
and Home Appliances
Natural Gas
Period
Year
Period
Year
Period
Year
Period
Year
Period
Year
Period
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011
- (43,036.57) (11,728.11)
(5.09)
(0.19)
-

(1,032.21)

49.74

- (12,005.08)
1,964.31
- (32,068.79) (13,642.87)

3,807.60
5.21
- (28,261.19) (13,637.66)

iii) Other Information:


(` in Million)
Consumer Electronics
and Home Appliances

Telecommunications

Power

Others/Unallocable

Total

Particulars

Period
Year.
Period
Year
Period
Year
Period
Year
Period
Year
Period
Year
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011 30.06.2013 31.12.2011

Segment Assets

168,747.59 166,207.17 139,705.67

69,550.51

62,543.63

52,020.73

12,603.40

16,516.86 111,089.21

88,421.90 494,689.50 392,717.17

Segment Liabilities

101,390.85

65,573.63

48,551.49

65,329.78

7,376.32

11,034.44 141,644.86

80,832.65 447,552.52 319,927.38

Capital Expenditure

11,912.73

9,280.52

45,664.53

20,790.19

18,467.28

1,934.48

(507.10)

5,963.64

385.47

109.34

75,922.91

38,078.17

7,526.87

5,244.73

599.83

795.49

4,709.84

3,015.73

280.55

32.97

138.61

71.83

13,255.70

9,160.75

Depreciation
d)

Crude Oil and


Natural Gas

97,156.88 148,589.00

Secondary Segment Information:


(` in Million)
Within India
Particulars

48.

Period ended
30.06.2013

Outside India

Year ended
31.12.2011

Period ended
30.06.2013

Total

Year ended
31.12.2011

Period ended
30.06.2013

Year ended
31.12.2011

Segment Revenue - External Turnover

187,780.60

131,112.77

6,457.93

5,732.30

194,238.53

136,845.07

Segment Assets

354,449.24

311,973.89

140,240.26

80,743.28

494,689.50

392,717.17

Segment Liabilities

318,224.10

250,737.41

129,328.42

69,189.97

447,552.52

319,927.38

Capital Expenditure

30,426.21

17,886.80

45,496.70

20,191.37

75,922.91

38,078.17

These consolidated QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQWKHIRUPDWSUHVFULEHGE\WKH5HYLVHG6FKHGXOH9,WRWKH&RPSDQLHV$FW3UHYLRXV


\HDUJXUHVKDYHEHHQUHFODVVLHGUHVWDWHGUHFDVWHGWRFRQIRUPWRWKHFODVVLFDWLRQRIWKHFXUUHQWSHULRG7KHJXUHVRIWKHFXUUHQWSHULRGDUHQRW
FRPSDUDEOH ZLWK WKRVH RI WKH SUHYLRXV \HDU DV D  WKH FXUUHQW SHULRGV JXUHV GR QRW LQFOXGH RSHUDWLRQV RI FHUWDLQ VXEVLGLDULHV FRQVHTXHQW WR WKHLU
cessation to be subsidiaries of the Company in the previous period and include operations of certain subsidiaries for part of the period, consequent to
their acquisition as stated in Note1RDERYHE WKHJXUHVIRUWKHFXUUHQWSHULRGDUHIRUDSHULRGRIPRQWKVDVDJDLQVWPRQWKVLQSUHYLRXV\HDU

As per our report of even date

For and on behalf of the Board

For KHANDELWAL JAIN & CO.


Chartered Accountants

For KADAM & CO.


Chartered Accountants

SHIVRATAN AGARWAL
Partner
Membership No. 104180

U. S. KADAM
Partner
Membership No. 31055

V. N. DHOOT
Chairman and Managing Director

VINOD KUMAR BOHRA


Company Secretary

Place : Mumbai
Date : 29th November, 2013

76

S. PADMANABHAN
Director

77

FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES

INR Mn

INR Mn

INR Mn

INR Mn

US$

US$

US$

US$

US$

US$

Comet Power Private


Limited

Unity Power Private Limited

Applied Energy Private


Limited

3URFLHQW(QHUJ\3ULYDWH
Limited

Videocon Energy Limited

Prosperous Energy Private


Limited

Chhattisgarh Power
Ventures Private Limited

Pipavav Energy Private


Limited

Videocon JPDA 06-103


Limited

Videocon Mozambique
Rovuma 1 Limited

Videocon Energy Brazil


Limited

Videocon Indonesia
Nunukan Inc.

Videocon Australia WA388-P Limited

Videocon Mauritius Energy


Limited

10

11

12

13

14

15

16

0.60

INR Mn

0.06

INR Mn

0.06

INR Mn

0.000

INR Mn

0.06
0.001

INR Mn

USD Mn

0.000

USD Mn
59.94

0.001

USD Mn
59.94

0.001

USD Mn
59.94

0.01

USD Mn
59.94

0.001

USD Mn
59.94

0.06

INR Mn

0.10

0.10

1,000.00

0.10

0.10

0.10

207.32

0.10

0.10

Capital

5,500.00
59.94

Exchange
Rate

INR Mn

INR Mn

INR Mn

INR Mn

INR Mn

Percept Energy Private


Limited

INR Mn

Amount in

Reporting
Currency

Indigo Energy Private


Limited

Name of the Subsidiary


Company

Sr.
No.

Share
Application
Money
Received

(117.18)

(7,023.58)

(0.07)

(4.37)

(0.10)

(6.16)

(4.37)

(261.98)

(0.84)

(50.24)

(5.80)

(347.71)

(7.15)

(0.08)

(0.08)

(7.19)

(5.06)

(3.88)

23.60

(32.13)

(1.63)

(0.30)

Reserves

2,594.56

155,518.45

0.03

1.49

52.32

3,136.15

842.28

50,486.10

452.66

27,132.83

101.93

6,109.56

7,078.16

1,509.66

417.73

993.42

297.31

230.99

762.84

791.41

0.10

0.10

Total Assets

2,711.74

162,541.97

0.10

5.86

52.42

3,142.25

846.65

50,748.02

453.49

27,182.47

107.73

6,457.21

1,585.31

1,509.64

417.71

0.61

302.27

234.77

739.14

616.22

1.63

0.30

Total
Liabilities

0.03

54.77

Investment
(Other than
Investments
in
Subsidiaries)

22.31

1,337.29

0.000

0.001

0.17

10.42

0.13

0.07

0.08

0.03

197.39

263.20

Turnover/
Total Income

(117.15)

(7,021.94)

(0.06)

(3.48)

(0.08)

(4.77)

(0.11)

(6.60)

(0.53)

(31.70)

0.12

6.94

(0.68)

(0.04)

(0.06)

(0.05)

(22.26)

(12.04)

38.39

(37.03)

(0.02)

(0.30)

0.001

(0.01)

(5.60)

(2.53)

14.76

0.15

3URW%HIRUH Provision for


Tax
Tax ( Net of
Write back)

(117.15)

(7,021.93)

(0.06)

(3.48)

(0.08)

(4.77)

(0.11)

(6.60)

(0.53)

(31.70)

0.12

6.94

(0.68)

(0.04)

(0.05)

(0.05)

(16.66)

(9.51)

23.63

(37.18)

(0.02)

(0.30)

3URWDIWHU
Tax
Proposed
Dividend

Mauritius

Cayman
Island

Cayman
Island

British Virgin
Island

British Virgin
Island

Cayman
Island

India

India

India

India

- India

- India

- India

- India

- India

- India

Country

The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February, 2011 and 21st February, 2011, respectively has granted a general exemption from
?KILHE=J?ASEPDOA?PEKJKBPDA KIL=JEAO?P  OQ>FA?PPKBQHHHIAJPKB?KJ@EPEKJOOPELQH=PA@EJPDA?EN?QH=N1DA KIL=JUD=OO=PEOA@PDA?KJ@EPEKJOOPELQH=PA@EJPDA?EN?QH=N=J@
hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

RO

CNY

Videocon Oil Ventures


Limited

Videocon Global Limited

Middle East Appliances LLC

Videocon Electronic
(Shenzen) Limited (Chinese
Name- Wei You Kang
Electronic (Shenzen)
Co Ltd)

Videocon Estelle Limited

18

19

20

21

22

78

US$

Videocon Ivory Limited

Videocon International
Electronics Limited

Jumbo Techno Services


Private Limited

Senior Consulting Private


Limited

Videocon
Telecommunications Limited

Datacom
Telecommunications Private
Limited

Liberty Videocon General


Insurance Company Limited

23

24

25

26

27

28

29

US$

US$

US$

Reporting
Currency

Videocon Hydrocarbon
Holdings Limited

Name of the Subsidiary


Company

17

Sr.
No.

0.06

INR Mn

INR Mn

INR Mn

INR Mn

INR Mn

INR Mn

3,593.50

0.50

54,337.50

10.00

1,000.00

30,000.00

0.001

INR Mn

USD Mn

0.03

USD Mn
59.94

1.50

INR Mn

8.93
0.92

59.94

9.71028

CNY Mn

INR Mn

2.25

351.45

INR Mn

RO Mn

0.80

USD Mn
156.08

48.10

INR Mn

203.00

12,167.82

Capital

1,000.00
59.94

59.94

Exchange
Rate

INR Mn

USD Mn

INR Mn

Amount in

4.15

647.89

68.00

4,075.92

Share
Application
Money
Received

(444.44)

(0.44)

(40,344.93)

(3.09)

1,221.92

(6,096.16)

(0.02)

(1.14)

(0.02)

(1.02)

(3.07)

(29.80)

(5.16)

(805.34)

1.09

65.42

(3,588.88)

1,863.44

111,694.81

Reserves

3,258.15

1.93

62,544.02

1,386.34

6,246.29

58,011.85

0.001

0.06

0.03

1.50

3.37

32.77

1.26

196.75

71.13

4,263.60

12,971.52

4,331.40

259,624.22

Total Assets

109.09

1.87

48,551.45

1,379.43

4,024.37

34,108.01

0.02

1.14

0.02

1.02

5.52

53.64

0.02

2.75

69.24

4,150.08

15,560.40

2,196.96

131,685.67

Total
Liabilities

2,228.34

0.02

2,758.30

Investment
(Other than
Investments
in
Subsidiaries)

209.08

1.20

6,057.57

0.22

0.22

0.22

3.44

33.37

0.31

48.71

6.91

414.40

0.59

2,391.59

143,352.04

Turnover/
Total Income

(396.59)

(0.17)

(23,619.58)

(0.07)

(0.17)

(4,997.18)

(0.01)

(0.81)

(0.01)

(0.81)

(2.85)

(27.68)

(0.004)

(0.63)

(2.88)

(172.70)

(3,523.57)

2,090.43

125,300.42

(11,583.44)

0.05

0.39

224.09

13,431.77

3URW%HIRUH Provision for


Tax
Tax ( Net of
Write back)

FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES

(396.59)

(0.17)

(12,036.14)

(0.12)

(0.56)

(4,997.18)

(0.01)

(0.81)

(0.01)

(0.81)

(2.85)

(27.68)

(0.004)

(0.63)

(2.88)

(172.70)

(3,523.57)

1,866.34

111,868.65

3URWDIWHU
Tax
Proposed
Dividend

India

India

India

India

India

India

Mauritius

Mauritius

China

Sultanate of
Oman

British Virgin
Island

India

Cayman
Island

Country

ANNUAL REPORT 2013

ATTENDANCE SLIP
VIDEOCON INDUSTRIES LIMITED
5HJG2IFH14 K.M. Stone, Aurangabad - Paithan Road, Village: Chittegaon, Taluka: Paithan,
Dist.: Aurangabad - 431 105 (Maharashtra)
PLEASE FILL ATTENDANCE SLIP AND HAND IT OVER AT THE ENTRANCE OF THE MEETING HALL.
Joint Shareholders may obtain additional slip on request.
DP ID*
Registered Folio No.
Client ID*
NAME AND ADDRESS OF THE SHAREHOLDER ______________________________________________________
_______________________________________________________________________________________________
No. Share(s) Held:________________________________
I hereby record my presence at the TWENTY- FOURTH ANNUAL GENERAL MEETING of the Company to be held on
6DWXUGD\WK'HFHPEHUDWDPDWWKH5HJLVWHUHGRIFHRIWKH&RPSDQ\DW.06WRQH$XUDQJDEDG
Paithan Road, Village: Chittegaon, Taluka: Paithan, Dist.: Aurangabad-431 105 (Maharashtra).
Signature of the Shareholder/Proxy_______________________________
*Applicable for investors holding shares in electronic form

TERE HERE

PROXY FORM
VIDEOCON INDUSTRIES LIMITED
5HJG2IFH14 K.M. Stone, Aurangabad - Paithan Road, Village: Chittegaon, Taluka: Paithan,
Dist.: Aurangabad - 431 105 (Maharashtra)
DP ID*
Registered Folio No.
Client ID*

I/We____________________________________________________________________________________________ of
_______________________________________________________________________ being a member/members of
Videocon Industries Limited hereby appoint ________________________________ of ___________________________
or failing him______________________________________ as my/our proxy to vote for me/us and on my/our behalf at
the TWENTY- FOURTH ANNUAL GENERAL MEETING of the Company to be held on Saturday, 28th December, 2013,
DWDPDWWKH5HJLVWHUHGRIFHRIWKH&RPSDQ\DW.06WRQH$XUDQJDEDG3DLWKDQ5RDG9LOODJH&KLWWHJDRQ
7DOXND3DLWKDQ'LVW$XUDQJDEDG 0DKDUDVKWUD DWDQ\DGMRXUQPHQWVWKHUHRI
Signed on this______________________________ day of ___________________2013
Signature _________________________________
No. of Shares held__________________________

$I[
Revenue
Stamp of
` 1/-

*Applicable for Investors holding shares in electronic form


Note: The Proxy in order to be effective should be duly stamped, completed and signed and must be deposited at the
5HJLVWHUHG2IFHRIWKH&RPSDQ\QRWOHVVWKDQKRXUVEHIRUHWKHWLPHRIKROGLQJWKHDIRUHVDLGPHHWLQJ7KHSUR[\
need not be a member of the Company.
Please read errata for typesetting matter

If undelivered, please return to:


MCS Limited
Unit: Videocon Industries Limited
Kashiram Jamnadas Building, Office No. 21/22, Ground Floor,
5, P.Dmello Road (Ghadiyal Godi), Masjid (East), Mumbai 400 009.

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