Professional Documents
Culture Documents
CONTENTS
Notice ..................................................................................................................................................... 1
Directors Report..................................................................................................................................... 5
Corporate Governance Report .............................................................................................................. 14
Management Discussion and Analysis Report ....................................................................................... 26
Auditors Report ..................................................................................................................................... 31
Balance Sheet ........................................................................................................................................ 34
6WDWHPHQWRI3URWDQG/RVV ................................................................................................................. 35
Cash Flow Statement ............................................................................................................................ 36
Notes forming part of the Financial Statements ..................................................................................... 37
Consolidated Financial Statements ........................................................................................................ 53
Financial Information of Subsidiary Companies .................................................................................... 77
NOTICE
NOTICE is hereby given that the Twenty-Fourth Annual General law), which the Board be and is hereby authorised to accept,
Meeting of the Members of VIDEOCON INDUSTRIES LIMITED LILWWKLQNVWLQWKHLQWHUHVWRIWKH&RPSDQ\WKHFRQVHQWRIWKH
(the Company) will be held on Saturday, 28th December, 2013 Company be and is hereby accorded to the Board to create,
DW WKH 5HJLVWHUHG 2IFH RI WKH &RPSDQ\ DW . 0 6WRQH LVVXH RIIHU DQG DOORW HTXLW\ VKDUHV DQGRU RWKHU HTXLW\ OLQNHG
Aurangabad - Paithan Road, Village: Chittegaon, Taluka: Paithan, RU FRQYHUWLEOH QDQFLDO LQVWUXPHQWV 2),V LQ RQH RU PRUH
'LVW$XUDQJDEDG0DKDUDVKWUDDWDPWRWUDQVDFW tranches, whether denominated in Indian rupee or foreign
the following business: currency(ies), in the course of international and/or domestic
offering(s) in one or more foreign market(s), for an amount
ORDINARY BUSINESS QRWH[FHHGLQJ`&URUHV5XSHHV)LYH7KRXVDQG&URUHV
7R UHFHLYH FRQVLGHU DQG DGRSW WKH $XGLWHG 6WDWHPHQW RI 2QO\ RU LWV HTXLYDOHQW IRUHLJQ FXUUHQF\ LQFOXVLYH RI SUHPLXP
3URWDQG/RVVIRUWKHSHULRGHQGHGWK-XQHDQGWKH through a follow-on public offering (FPO) to eligible investors,
Balance Sheet as at that date together with the Reports of the or through Global Depository Receipts (GDRs), American
%RDUGRI'LUHFWRUVDQG$XGLWRUVWKHUHRQ Depository Receipts (ADRs), Foreign Currency Convertible
Bonds (FCCBs), any other Depository Receipt Mechanism
7RGHFODUHGLYLGHQGRQSUHIHUHQFHVKDUHV FRQYHUWLEOH LQWR (TXLW\ 6KDUHV HLWKHU DW WKH RSWLRQ RI WKH
Company or the holders thereof) at a later date, any such
7R GHFODUH GLYLGHQG RQ HTXLW\ VKDUHV KHOG E\ Non-Promoter
instrument or security including Debentures or Bonds or
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Foreign Currency Convertible Bonds (FCCBs) being either
7RDSSRLQWDGLUHFWRULQSODFHRI0U$QLO*-RVKLZKRUHWLUHVE\ with or without detachable warrants attached thereto entitling
URWDWLRQDQGEHLQJHOLJLEOHRIIHUVKLPVHOIIRUUHDSSRLQWPHQW WKH ZDUUDQW KROGHU WR DSSO\ IRU (TXLW\ 6KDUHVLQVWUXPHQWV
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7R DSSRLQW D GLUHFWRU LQ SODFH RI 0U 6 3DGPDQDEKDQ ZKR shares (hereinafter collectively referred to as the Securities)
retires by rotation and, being eligible, offers himself for re- RUDQ\FRPELQDWLRQRI(TXLW\6KDUHVZLWKRUZLWKRXWSUHPLXP
DSSRLQWPHQW to be subscribed to in Indian and/or any foreign currency(ies) by
7R DSSRLQW$XGLWRUV DQG WR [ WKHLU UHPXQHUDWLRQ DQG LQ WKLV resident or non-resident/foreign investors (whether institutions
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PRGLFDWLRQV WKH IROORZLQJ UHVROXWLRQ DV DQ 2UGLQDU\ and/or otherwise)/Foreign Institutional Investors (FIIs)/Mutual
Resolution: Funds/Pension Funds/ Venture Capital Funds/ Banks and
such other persons or entities, whether or not such investors
RESOLVED THAT 0V .KDQGHOZDO -DLQ &R &KDUWHUHG are members of the Company, to all or any of them, jointly
$FFRXQWDQWV )LUP 5HJLVWUDWLRQ 1R : DQG 0V or severally through prospectus, offer document and/or other
.DGDP &R &KDUWHUHG $FFRXQWDQWV )LUP 5HJLVWUDWLRQ letter, placement document or circular (Offer Document)
1R : EH DQG DUH KHUHE\ DSSRLQWHG DV $XGLWRUV RI and/or on private placement basis, from time to time in one or
WKH&RPSDQ\WRKROGRIFHIURPWKHFRQFOXVLRQRIWKLV$QQXDO more tranches as may be deemed appropriate by the Board
*HQHUDO 0HHWLQJ XQWLO WKH FRQFOXVLRQ RI WKH QH[W $QQXDO and such issue and allotment to be made on such occasion
General Meeting of the Company on such remuneration as or occasions, at such value or values, at a discount or at a
VKDOOEH[HGE\WKH%RDUGRI'LUHFWRUV premium to the market price prevailing at the time of the issue
and in such form and manner and on such terms and conditions
SPECIAL BUSINESS RU VXFK PRGLFDWLRQV WKHUHWR DV WKH %RDUG PD\ GHWHUPLQH LQ
7RFRQVLGHUDQGLIWKRXJKWWWRSDVVZLWKRUZLWKRXWPRGLFDWLRQ FRQVXOWDWLRQ ZLWK WKH /HDG 0DQDJHUV DQGRU 8QGHUZULWHUV
the following resolution as a Special Resolution: and/or other Advisors, with authority to retain oversubscription
upto such percentage as may be permitted by the Appropriate
RESOLVED THAT pursuant to the provisions of Section Authorities, with or without voting rights in general meetings/
81(1A) and other applicable provisions, if any, of the Companies class meetings, at such price or prices, at such interest or
$FWLQFOXGLQJDQ\DPHQGPHQWWKHUHWRRUUHHQDFWPHQW additional interest, at a discount or at a premium on the market
WKHUHRI WKH )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW WKH price or prices and in such form and manner and on such terms
Issue of Foreign Currency Convertible Bonds and Ordinary DQG FRQGLWLRQV RU VXFK PRGLFDWLRQV WKHUHWR LQFOXGLQJ WKH
Shares (Through Depository Receipt Mechanism) Scheme, number of Securities to be issued, face value, rate of interest,
WKH QRWLFDWLRQV LVVXHG E\ WKH 5HVHUYH %DQN RI ,QGLD redemption period, manner of redemption, amount of premium
(RBI) and other applicable laws, listing agreements entered RQ UHGHPSWLRQSUHSD\PHQW QXPEHU RI IXUWKHU HTXLW\ VKDUHV
LQWR E\ WKH &RPSDQ\ ZLWK WKH VWRFN H[FKDQJHV ZKHUH WKH WR EH DOORWWHG RQ FRQYHUVLRQ UHGHPSWLRQH[WLQJXLVKPHQW RI
shares of the Company are listed, Articles of Association GHEWVH[HUFLVHRIULJKWVDWWDFKHGWRWKHZDUUDQWVWKHUDWLRRI
and subject to all other statutory and regulatory approvals, H[FKDQJHRIVKDUHVDQGRUZDUUDQWVDQGRUDQ\RWKHUQDQFLDO
consents, permissions and/or sanctions of the Government of LQVWUXPHQWSHULRGRIFRQYHUVLRQ[LQJRIUHFRUGGDWHRUERRN
,QGLD5HVHUYH%DQNRI,QGLD6HFXULWLHVDQG([FKDQJH%RDUG closure and all other related or incidental matters as the Board
of India (SEBI) and all other concerned authorities (hereinafter PD\LQLWVDEVROXWHGLVFUHWLRQWKLQNWDQGGHFLGHLQFRQVXOWDWLRQ
singly or collectively referred to as the Appropriate Authorities) with the appropriate authority(ies), the Merchant Banker(s) and/
DVPD\EHUHTXLUHGDQGVXEMHFWWRVXFKWHUPVFRQGLWLRQVDQG RU /HDG 0DQDJHUV DQGRU 8QGHUZULWHUV DQGRU $GYLVRUV
PRGLFDWLRQVDVPD\EHSUHVFULEHGE\DQ\RIWKH$SSURSULDWH DQGRU VXFK RWKHU SHUVRQV EXW ZLWKRXW UHTXLULQJ DQ\ IXUWKHU
Authorities while granting any such approval, consent, approval or consent from the shareholders and also subject to
permission and/or sanction and agreed to by the Board of WKHDSSOLFDEOHUHJXODWLRQVIRUWKHWLPHEHLQJLQIRUFH
Directors of the Company (herein after called the Board, which
term shall be deemed to include any committee(s) constituted/ RESOLVED FURTHER THAT the Relevant Date for determining
WREHFRQVWLWXWHGE\WKH%RDUGWRH[HUFLVHLWVSRZHUVLQFOXGLQJ WKHSULFLQJRIWKH6HFXULWLHVRULVVXHRI(TXLW\6KDUHVXQGHUO\LQJ
SRZHUVFRQIHUUHGE\WKLVUHVROXWLRQWRWKHH[WHQWSHUPLWWHGE\ the GDRs/ADRs or securities issued on conversion of FCCBs
1
ANNUAL REPORT 2013
is the date of the meeting in which the Board decides to open RESOLVED FURTHER THAT the Board be and is hereby
WKHSURSRVHGLVVXHRUVXFKGDWHLIDQ\DVPD\EHQRWLHGE\ authorised to delegate all or any of the powers herein conferred
6(%,RUWKH5%,RUDQ\$SSURSULDWH$XWKRULW\IURPWLPHWRWLPH by this resolution on it, to any Committee of Directors or any
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RESOLVED FURTHER THAT the Board be and is hereby
in order to give effect to this resolution.
DXWKRULVHGWRHQWHULQWRDQGH[HFXWHDOOVXFKDJUHHPHQWVDQG
DUUDQJHPHQWVZLWKDQ\/HDG0DQDJHUV&R/HDG0DQDJHUV By order of the Board of Directors of
0DQDJHUV $GYLVRUV 8QGHUZULWHUV *XDUDQWRUV VIDEOCON INDUSTRIES LIMITED
Depository(ies), Custodian(s), Trustee, Stabilisation Agent,
Banker/Escrow Banker to the Issue and all such agencies as
may be involved or concerned in such offerings of Securities Place: Mumbai VINOD KUMAR BOHRA
and to remunerate all such agencies by way of commission, 'DWHWK1RYHPEHU COMPANY SECRETARY
brokerage, fees or the like, and also to seek the listing of such
6HFXULWLHVLQRQHRUPRUH,QGLDQ,QWHUQDWLRQDO6WRFN([FKDQJHV 5HJLVWHUHG2IFH
.06WRQH$XUDQJDEDG3DLWKDQ5RDG
RESOLVED FURTHER THAT the Board and/or agency or body Village: Chittegaon, Taluka: Paithan,
authorised by the Board may issue Depository Receipt(s) or 'LVW$XUDQJDEDG0DKDUDVKWUD
&HUWLFDWHVUHSUHVHQWLQJWKHXQGHUO\LQJVHFXULWLHVLVVXHGE\
the Company in registered or bearer form with such features NOTES
and attributes as are prevalent in Indian and/or International
Capital Markets for the instruments of this nature and to provide A MEMBER ENTITLED TO ATTEND AND VOTE AT
for the tradability or free transferability thereof, as per the Indian/ THE ANNUAL GENERAL MEETING (THE MEETING)
International practices and regulations and under the norms IS ENTITLED TO APPOINT A PROXY/PROXIES TO
DQGSUDFWLFHVSUHYDOHQWLQWKH,QGLDQ,QWHUQDWLRQDO0DUNHWV ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF/
HERSELF AND THE PROXY NEED NOT BE A MEMBER
RESOLVED FURTHER THAT the Board be and is hereby
OF THE COMPANY. THE INSTRUMENT APPOINTING THE
DXWKRULVHG WR LVVXH DQG DOORW VXFK QXPEHU RI IXUWKHU (TXLW\
PROXY SHOULD, HOWEVER, BE DEPOSITED AT THE
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REGISTERED OFFICE OF THE COMPANY NOT LESS THAN
conversion of any securities or as may be necessary in
FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT
accordance with the terms of the offering, all such further
(TXLW\ 6KDUHV UDQNLQJ pari-passu ZLWK WKH H[LVWLQJ IXOO\ SDLG OF THE MEETING. A PERSON CAN BE A PROXY FOR
HTXLW\VKDUHVRIWKH&RPSDQ\LQDOOUHVSHFWVH[FHSWSURYLGHG MEMBERS NOT EXCEEDING 50 (FIFTY) AS PER THE
RWKHUZLVHXQGHUWKHWHUPVRILVVXHDQGLQWKHRIIHUGRFXPHQW COMPANIES ACT, 2013.
RESOLVED FURTHER THAT VXEMHFW WR WKH H[LVWLQJ ODZ ,Q WHUPV RI 6HFWLRQ RI WKH &RPSDQLHV $FW D
and regulations, such Securities to be issued, that are not statement setting out the material facts concerning special
subscribed, during the currency of the warrants or option or business to be transacted at the MHHWLQJ LV DQQH[HG DQG
DQ\ULJKWHQWLWOLQJWKHKROGHURIVHFXULW\WRVXEVFULEHIRU(TXLW\ forms part of this NRWLFH
Shares or any OFIs, may be disposed of by the Board to &RUSRUDWH 0HPEHUV LQWHQGLQJ WR VHQG WKHLU DXWKRUL]HG
such person(s) and in such manner and on such terms as the UHSUHVHQWDWLYHVWRDWWHQGWKH0HHWLQJDUHUHTXHVWHGWRVHQG
%RDUG PD\ LQ LWV DEVROXWH GLVFUHWLRQ WKLQN PRVW EHQHFLDO WR D FHUWLHG FRS\ RI WKH %RDUG 5HVROXWLRQ DXWKRUL]LQJ VXFK
the Company, including offering or placing them with resident representative(s) to attend and vote on their behalf at the
or non-resident/foreign investor(s) (whether institutions and/ 0HHWLQJ
or incorporated bodies and/or individuals and/or trusts and/or
RWKHUZLVH),,V4XDOLHG,QVWLWXWLRQDO%X\HUV4,%V0XWXDO ,QWHUPVRIWKHSURYLVLRQVRI6HFWLRQRIWKH&RPSDQLHV
Funds/ Pension Funds/ Venture Capital Funds/ Banks and/or $FWDQGWKHSURYLVLRQVRIWKH$UWLFOHVRI$VVRFLDWLRQRI
Employees and Business Associates of the Company or such WKH &RPSDQ\ 0U $QLO * -RVKL DQG 0U 6 3DGPDQDEKDQ
other person(s) or entity(ies) or otherwise, whether or not such Directors of the Company, are liable to retire by rotation at
investors are members of the Company, as the Board may in its WKH HQVXLQJ 0HHWLQJ %HLQJ HOLJLEOH 0U $QLO * -RVKL DQG
DEVROXWHGLVFUHWLRQGHFLGH 0U 6 3DGPDQDEKDQ KDYH RIIHUHG WKHPVHOYHV IRU UH
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RESOLVED FURTHER THAT for the purpose of giving effect
DSSRLQWPHQW QDWXUH RI WKHLU H[SHUWLVH LQ VSHFLF IXQFWLRQDO
to the above resolutions, the Board be and is hereby authorised
area; names of the other public limited companies in which
on behalf of the Company to agree to and make and accept
VXFKFRQGLWLRQVPRGLFDWLRQVDQGDOWHUDWLRQVVWLSXODWHGE\DQ\ they hold directorship and membership/chairmanship of
of the relevant authorities while according approvals, consents the Committees of the Board of Directors and particulars
or permissions to the issue as may be considered necessary, RI WKHLU VKDUHKROGLQJ DV VWLSXODWHG XQGHU &ODXVH RI
SURSHUDQGH[SHGLHQWDQG WRGRDOO VXFKDFWVGHHGV PDWWHUV WKH /LVWLQJ $JUHHPHQW ZLWK WKH 6WRFN ([FKDQJHV LQ ,QGLD
and things as it may, in its absolute discretion, deem necessary LV DSSHQGHG WR WKH QRWLFH 7KH %RDUG RI 'LUHFWRUV RI \RXU
or desirable for such purpose, including without limitation &RPSDQ\UHFRPPHQGUHDSSRLQWPHQWRI0U$QLO*-RVKLDQG
the entering into of underwriting, marketing, depository and 0U63DGPDQDEKDQDVWKH'LUHFWRUVRIWKH&RPSDQ\
custodian arrangements and with power on behalf of the )RU FRQYHQLHQFH RI WKH 0HPEHUV DQG IRU SURSHU FRQGXFW RI
&RPSDQ\WRVHWWOHDQ\TXHVWLRQVGLIFXOWLHVRUGRXEWVWKDWPD\ the Meeting, entry to the place of Meeting will be regulated
arise in regard to any such issue(s)/ offer(s) or allotment(s) or E\ DWWHQGDQFH VOLS ZKLFK LV DQQH[HG WR WKH$QQXDO 5HSRUW
otherwise and utilization of the issue proceeds and/ or otherwise 0HPEHUVDUHUHTXHVWHGWRVLJQDWWKHSODFHSURYLGHGRQWKH
to alter or modify the terms of issue, if any, as it may in its DWWHQGDQFHVOLSDQGKDQGLWRYHUDWWKHHQWUDQFHRIWKHYHQXH
DEVROXWHGLVFUHWLRQGHHPWDQGSURSHUZLWKRXWEHLQJUHTXLUHG
to seek any further consent or approval of the Company to the 0HPEHUV ZKR KROG VKDUHV LQ GHPDWHULDOL]HG IRUP DUH
end and intent that the Company shall be deemed to have given UHTXHVWHG WR ZULWH WKHLU &OLHQW ,' DQG '3 ,' DQG WKRVH ZKR
LWVDSSURYDOWKHUHWRH[SUHVVO\E\WKHDXWKRULW\RIWKLVUHVROXWLRQ KROGVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHGWRZULWHWKHLU)ROLR
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holder who is higher in the order of names shall be entitled to VKDUHVLQHOHFWURQLFIRUPDUHUHTXHVWHGWRQRWLI\DQ\FKDQJHLQ
YRWH WKHLUDGGUHVVHVWRWKHLUUHVSHFWLYH'HSRVLWRU\3DUWLFLSDQW
7KH 5HJLVWHU RI 0HPEHUV DQG 6KDUH 7UDQVIHU %RRNV VKDOO 1RQ5HVLGHQW ,QGLDQ 0HPEHUV DUH UHTXHVWHG WR LQIRUP 0V
remain closed from Monday, 16th December, 2013 to Saturday, 0&6/LPLWHGWKH5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWRIWKH
28th December, 2013 (both days inclusive) for the purpose of Company, immediately of change in their residential status
the Meeting and for determining shareholders entitlement for on return to India for permanent settlement together with the
GLYLGHQG particulars of their Bank Account maintained in India with
complete name, branch, account type, account number and
7KH'LYLGHQGDVUHFRPPHQGHGE\WKH%RDUGRI'LUHFWRUVLI
address of the Bank with Pin Code Number, if not furnished
declared at the Meeting, will be paid on or around Thursday,
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QG -DQXDU\ WR WKRVH 0HPEHUV ZKR KROG VKDUHV LQ
physical form and whose names appear in the Companys 7KHHTXLW\VKDUHVRIWKH&RPSDQ\DUHWUDGDEOHFRPSXOVRULO\
5HJLVWHU RI 0HPEHUV RQ 0RQGD\ WK 'HFHPEHU $V in electronic form and your Company has established
regards shares held in the electronic form, the dividend will be FRQQHFWLYLW\ZLWKERWKWKH'HSRVLWRULHVLH16'/DQG&'6/
SDLGWRWKRVHEHQHFLDORZQHUVRIWKHVKDUHVDVDWWKHFORVH Taking into consideration the enormous advantages offered by
RIEXVLQHVVKRXUVRQ6DWXUGD\WK'HFHPEHUDVSHU WKH 'HSRVLWRU\ 6\VWHP 0HPEHUV DUH UHTXHVWHG WR DYDLO WKH
WKH SDUWLFXODUV RI EHQHFLDO RZQHUVKLS IXUQLVKHG E\ 1DWLRQDO facility of dematerialization of the Companys shares on either
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6HUYLFHV,QGLD/LPLWHG&'6/ 7KH GRFXPHQWV UHIHUUHG WR LQ WKH DFFRPSDQ\LQJ QRWLFH
3XUVXDQW WR WKH SURYLVLRQV RI 6HFWLRQ $ DQG & RI WKH DUH DYDLODEOH IRU LQVSHFWLRQ DW WKH 5HJLVWHUHG 2IFH RI WKH
&RPSDQLHV $FW WKH &RPSDQ\ KDV WUDQVIHUUHG WKH &RPSDQ\ RQ DOO ZRUNLQJ GD\V EHWZHHQ QRRQ WR
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Investor Education and Protection Fund (IEPF) established by 0HPEHUVGHVLULQJDQ\LQIRUPDWLRQDVUHJDUGVWRWKH$FFRXQWV
WKH &HQWUDO *RYHUQPHQW 0HPEHUV ZKR KDYH QRW HQFDVKHG DUHUHTXHVWHGWRZULWHWRWKH&RPSDQ\DWDQHDUO\GDWHVRDV
GLYLGHQG ZDUUDQWV IRU WKH VXEVHTXHQW \HDUV DUH UHTXHVWHG WRHQDEOHWKH0DQDJHPHQWWRUHSO\DWWKH0HHWLQJ
WR FRQWDFW 0V 0&6 /LPLWHG 5HJLVWUDU DQG 6KDUH 7UDQVIHU
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VHFUHWDULDO#YLGHRFRQPDLOFRP
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or IEPF in respect of any amounts which were unclaimed and 0HPEHUVDUHUHTXHVWHGWRNLQGO\EULQJWKHLUFRS\RIWKH$QQXDO
XQSDLG IRU D SHULRG RI VHYHQ \HDUV IURP WKH GDWH WKH\ UVW 5HSRUWWRWKH0HHWLQJ
became due for payment and no payment shall be made in By order of the Board of Directors of
UHVSHFWRIDQ\VXFKFODLPV VIDEOCON INDUSTRIES LIMITED
0HPEHUV ZKR KROG VKDUHV LQ SK\VLFDO IRUP XQGHU PXOWLSOH
folios, in identical names or joint accounts in the same order
RU QDPHV DUH UHTXHVWHG WR VHQG WKH VKDUH FHUWLFDWHV WR Place: Mumbai VINOD KUMAR BOHRA
0V0&6/LPLWHG5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWRIWKH 'DWHWK1RYHPEHU COMPANY SECRETARY
&RPSDQ\IRUFRQVROLGDWLRQLQWRDVLQJOHIROLR
5HJLVWHUHG2IFH
0HPEHUV KROGLQJ VKDUHV LQ SK\VLFDO IRUP DUH UHTXHVWHG .06WRQH$XUDQJDEDG3DLWKDQ5RDG
to kindly notify any change in their address(es) to the Village: Chittegaon, Taluka: Paithan,
Company, so as to enable the Company to address future 'LVW$XUDQJDEDG0DKDUDVKWUD
3
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)
4
DIRECTORS REPORT
Dear Shareholders, 7KH &RPSDQ\ FRQWLQXHV WR H[SORUH PRUH RSSRUWXQLWLHV LQ RLO DQG
gas sector in pursuance to its corporate objective and strategy to
Your Directors take pleasure in presenting the Twenty-Fourth
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Annual Report together with the Audited Accounts and Auditors
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5HSRUWIRUWKHQDQFLDOSHULRGHQGHGRQWK-XQH
wholly owned subsidiaries and/or joint ventures during the period
PERFORMANCE REVIEW under review have further added to the hydrocarbon resources
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The performance of the Company, on standalone basis, for the
QDQFLDOSHULRGHQGHGRQWK-XQHLVVXPPDUL]HGEHORZ BRAZIL
(` in Million) During the period under review, Petroleo Brasileiro SA, the Operator
for Sergipe, Espirito Santos and Potiguar concessions, announced
Period Ended Year Ended 31st YDULRXV GLVFRYHULHV LQ WKHVH &RQFHVVLRQV7KHVH GLVFRYHULHV DQG
Particulars 30th June, 2013 December, 2011
(18 months) (12 months) H[SORUDWLRQV IXUWKHU HVWDEOLVKHV DQG LQFUHDVHV WKH SURVSHFWLYLW\
RI YDULRXV EDVLQV LQ ZKLFK ,%9 %UDVLO 3HWUROHR /LPLWDGD D
Net Revenue from Operations 181,572.75 joint venture of the Company, through its wholly owned subsidiary
Other Income 4,182.66 9LGHRFRQ (QHUJ\ %UD]LO /LPLWHG ZLWK %35/ 9HQWXUHV %9 KDYH
FRQFHVVLRQV DGGLQJ WR WKH GLVFRYHULHV DOUHDG\ HVWDEOLVKHG 7KLV
Total Income 185,755.41
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3URW%HIRUH)LQDQFH&RVWV 34,246.52
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Finance Costs 27,148.18 %DVLQRIIVKRUH%UD]LOZDVVXFFHVVIXOO\FRPSOHWHG([SORUDWLRQ:HOO
Depreciation and Amortization 8,243.50 (66 NQRZQ DV *UDQD 3DGDQR ZDV VXFFHVVIXOO\ GULOOHG
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7
ANNUAL REPORT 2013
RESEARCH & DEVELOPMENT AND 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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various hazards at workplace; x Collection and dissemination of information among employees
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ANNUAL REPORT 2013
FOREIGN EXCHANGE EARNINGS AND OUTGO <RXU &RPSDQ\ EHOLHYHV WKDW ZKLOH SURW LV LPSRUWDQW IRU DOO
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Particulars 30th June, 2013 31st December, 2011
has put in place the strategy including CSR priorities and actions
(18 months) (12 months)
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A good IT infrastructure in the Company is absolutely necessary
Director of the Company resigned from the Board of the Company
for complying with the regulatory or safety norms, to improve
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house developed sales tool for providing day to day information
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of sales force, leading to long term business sustainability and
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10
SUBSIDIARY COMPANIES CASH FLOW STATEMENT
11
ANNUAL REPORT 2013
E ,QUHVSHFWRI3RLQW1RRI$XGLWRUV5HSRUWRQ&RQVROLGDWHG CORPORATE GOVERNANCE
Financial Statement regarding the recognisation of Deferred
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management is as under: 6WRFN([FKDQJHV&RUSRUDWH*RYHUQDQFH5HSRUWIRUPVSDUWRIWKLV
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of the Corporate Governance is appended to the Report on
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 DIRECTORS RESPONSIBILITY STATEMENT
increase in subscribers base and considering additional ,Q WHUPV RI 6HFWLRQ $$ RI WKH &RPSDQLHV $FW
capital infusion into the Company which would restrict further with respect to Directors Responsibility Statement, it is hereby
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the unabsorbed depreciation and business losVHV UHTXLUHPHQWVVHWRXWXQGHU6FKHGXOH9,WRWKH&RPSDQLHV$FW
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COST AUDITOR
from the same;
The Central Government has directed, vide various Orders to
b) the Directors have selected such accounting policies and
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applied them consistently and made judgments and estimates
5HIULJHUDWRU that are reasonable and prudent so as to give a true and fair
3HWUROHXP3URGXFWV2LOV *DV YLHZ RI WKH VWDWH RI DIIDLUV RI WKH &RPSDQ\ DV DW WK -XQH
2013 and of the loss of the Company for the period ended on
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that date;
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The Board has accorded its approval for the re-appointment of PDLQWHQDQFH RI DGHTXDWH DFFRXQWLQJ UHFRUGV LQ DFFRUGDQFH
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Pune, having Membership Number 7836, as the Cost Auditor of safeguarding the assets of the Company and for preventing
the Company, to conduct Audit of the Cost Accounting Records and detecting fraud and other irregularities; and
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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
The Board of Directors would like to thank the Customers, Vendors,
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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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For and on Behalf of the Board of Directors of
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powers of the Audit Committee together with details of meetings VIDEOCON INDUSTRIES LIMITED
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12
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 Designation Remuneration 4XDOLFDWLRQ Age Experience Date of Name of the Last Position
(in `) (Years) (Years) Joining Employer (Designation) in Last
Organisation
$EKLMLW.RWQLV Vice President %((OHFWURQLFV 23 VDC, Technologies, Factory Operational
6SD$QDJQL,WDO\ +HDG
Anil Arora Associate Vice %6F /*(OHFWURQLFV,QGLD %*0+
President /LPLWHG
$.0RGDQL 6U9LFH %&RP&$&6 Shree Digvijay )LQDQFH([HFXWLYH
President &HPHQW&R/LPLWHG
Arun Pal Vice President 0%$ 18 Samsung India Deputy General
Electronics Private Manager
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Chandramani Singh Vice President 0$3*'%0 17 Arron Engineering &KLHI([HFXWLYH2IFHU
'U*&1DLN Vice President- 3K'07HFK 30 2LO 1DWXUDO*DV Chief Geologist
Technical (Petroleum &RUSRUDWLRQ/LPLWHG
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Geoscienses
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13
ANNUAL REPORT 2013
CORPORATE GOVERNANCE REPORT
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Name of the Director Attendance at Attendance at the Other Board@
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15
ANNUAL REPORT 2013
%ULHI SUROH RI 'LUHFWRUV VHHNLQJ DSSRLQWPHQWUH The Statutory Auditors, CosW$XGLWRUVDQGWKH+HDGRI,QWHUQDO
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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
COMMITTEES OF THE BOARD OF DIRECTORS
Committee:
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to carry out various functions, as entrusted, and give the suitable SURFHVVDQGWKHGLVFORVXUHRILWVQDQFLDOLQIRUPDWLRQDQG
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Directors statements before submission to the Board for approval,
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Rights Issue Responsibility Statement to be included in the
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the Company of material nature, with promoters or
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the utilization of proceeds of a public or rights issue and
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suspected fraud or irregularity or a failure of internal
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in the payment to the depositors, debenture holders,
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function or discharging that function) after assessing the &RPSOLDQFH 2IFHU IRU FRPSO\LQJ ZLWK WKH UHTXLUHPHQWV RI
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17
ANNUAL REPORT 2013
6KDUH7UDQVIHU'HWDLOV x Determining the remuneration policy of the Company;
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review:
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held 2012) are entitled for remuneration as per their terms
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Details of complaints received and redressed during the
SHULRGHQGHGWK-XQH Sr. Name of the Director Sitting
No. Fees (Rs.)
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Name Meetings Attended
diverse businesses, enhanced value for shareholders and
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19
ANNUAL REPORT 2013
POSTAL BALLOT
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Resolution Particulars of the Resolution Passed Section of the Companies Nature of
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resolution passed
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E-Voting Resolution Polled Resolution Shares from
Excluding through Polled Voting
Rejected PBF/E- through No. of
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provide security, make inter-corporate loans upto an
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of Directors to sell, lease, mortgage, or otherwise
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Special resolution under Section 81(1A) of the 3,387 -
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GENERAL SHAREHOLDER INFORMATION Financial Year 1st July, 2013 to 30th June, 2014
$118$/*(1(5$/0((7,1* Third Quarterly 2QRUEHIRUHWK0D\
Results
The Twenty-Fourth Annual General Meeting of the Company
will be held as per the following schedule: Fourth Quarterly 2QRUEHIRUHWK$XJXVW
Results
Day Saturday
Date 28th December, 2013 Annual General 2QRUEHIRUHVW'HFHPEHU
Time DP Meeting for year
Venue $W WKH 5HJLVWHUHG 2IFH . 0 6WRQH HQGLQJWK-XQH
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(Maharashtra) 3. DATE OF BO2.&/2685(
2. FINANCIAL CALENDER FOR THE YEAR ENDED 30TH The date of Book Closure for the purpose of Annual General
-81( Meeting and determining the shareholders entitlement for
dividend shall be from Monday, 16th December, 2013 to
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ANNUAL REPORT 2013
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Category Category of Shareholder Number of Total Number As a As a
Code Shareholders of Shares percentage of percentage of
(A + B) (A+B+C)
(A) Shareholding of Promoter and Promoter
Group
(1) Indian
(2) Foreign - - - -
Sub-Total (A) 45 221,188,414 75.56 69.39
(B) Public Shareholding
(1) Institutions 163
(2) Non-Institutions
-Bodies Corporate 2,076
-Individuals 318,131
-Others
Sub-Total (B) 321,355 71,532,029 24.44 22.44
TOTAL (A) + (B) 321,400 292,720,443 100.00 91.83
(C) Shares held by Custodians and against
which depository Receipt have been issued
(1) Promoter and Promoter Group - - - -
(2) Public 2 -
Sub-total (C) 2 26,051,226 - 8.17
GRAND TOTAL (A) + (B) + (C) 321,402 *318,771,669 - 100.00
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WR 1,111,333 11,113,330
10,001 to 20,000 660
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23
ANNUAL REPORT 2013
11. REGIST5$5$1'6+$5(75$16)(5$*(17 The Correspondence address for shareholders in respect of
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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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For VIDEOCON INDUSTRIES LIMITED
CHIEF FINANCIAL OFFICER CHAIRMAN & MANAGING DIRECTOR
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25
ANNUAL REPORT 2013
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The management discussion and analysis report has been included TelevisLRQV
in adherence to the spirit enunciated in the code of Corporate
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The Management Discussion and Analysis presented in this Annual
impact in all walks of life because it is the most popular way of
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CONSUMER ELECTRONICS INDUSTRY Some of the eye catching features of televisions are:
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the manufacturers are under tremendous competitive pressure to
also has colour compensation / correction processing with
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is into the business of manufacturing, assembling and distributing a launching innovative products right from affordable to premium and
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OIL AND GAS SEGMENT- VIDEOCON
only remained for comfort but also became a fashion statement and
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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 Ravva Oil
*DV
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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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Oil and Gas
06/103- Campos-
x Copper tubing which apart from better durability and 20%
Blocks
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27
ANNUAL REPORT 2013
'XULQJ WKH SHULRG XQGHU UHYLHZ WKH ZKROO\ RZQHG 0DXULWLXV x Support from the Government- Favourable judiciary policies
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3XUFKDVH$JUHHPHQWZLWK21*&9LGHVK/LPLWHGDQG2LO,QGLD x ,QXHQFH RI ZHVWHUQ FRXQWULHV Due to westernisation and
/LPLWHG IRU VDOH RI LWV VWDNH LQ 9LGHRFRQ 0R]DPELTXH easy availability of products the consumers are relying on home
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x Technological advancement- Production of user friendly and
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technologically upgraded devices make such home appliances
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/LPLWDGD ZKLFK LV D -RLQW 9HQWXUH EHWZHHQ 9LGHRFRQ x (DV\DYDLODELOLW\RIQDQFHCredit schemes and funding plans
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The Consolidated Financial Statements have been prepared in terms x The volatility in prices of raw material remains a factor potentially
of Accounting Standard 21 on Consolidated Financial Statements, MHRSDUGL]LQJWKHKHDOWKRIWKHSURMHFWVEXVLQHVV
Accounting Standard 27 on Financial Reporting of Interests in
x Increase in competition from domestic as well as international
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Accordingly, the segment information as per Accounting Standard x 5LVLQJ UDWHV RI LQWHUHVW WD[HV DQG XQIDYRUDEOH JRYHUQPHQW
17 on Segment Reporting has been presented in consolidated SROLFLHV
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The segment-wise turnover on consolidated basis is as under:
(` in Million) x 7HFKQRORJLFDOXSJUDGDWLRQDQGDGYDQFHPHQW
28
RISK & CONCERNS INTERNAL CONTROL SYSTEMS AND ADEQUACY
The market for consumer electronics products and household The Company has an internal control system commensurate with
appliances are highly competitive and the Company has its size and nature of business which provides for:-
H[SHULHQFHG SUHVVXUH RQ LWV SULFHV DQG PDUJLQV 7KH &RPSDQ\
x Accurate recording and custody of assets;
H[SHFWV WKDW WHFKQRORJLFDO DGYDQFHV DQG DJJUHVVLYH SULFLQJ
VWUDWHJLHVE\FRPSHWLWRUVZLOOLQWHQVLI\FRPSHWLWLRQ x Compliance with applicable statutes, policies, procedures,
OLVWLQJUHTXLUHPHQWVPDQDJHPHQWJXLGHOLQHVDQGFLUFXODUV
Risks: Consumer Electronics & Home Appliances Business:
x 7UDQVDFWLRQ EHLQJ DFFXUDWHO\ UHFRUGHG FURVV YHULHG DQG
x Global economic environment- Consumer industry in India is
promptly reported;
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&RPSDQ\ZLOOQHHGWRH[WHQGLWVGHPRJUDSKLFVDQGRIIHUYDOXH x (IFLHQWXVHDQGVDIHJXDUGLQJRIUHVRXUFHV
proposition to the customers to develop and grow in business
x Adherence to applicable accounting standards and policies; and
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x Information technology system which include controls for
x &XUUHQF\ XFWXDWLRQ UHODWHG ULVN- The weakening of the
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The internal structure of the Company is a pyramid like structure
x 3ULFLQJ ULVNV- The pricing across our business is under risk
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composition and competencies of the audit team and effectiveness
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The Company strives to maintain a dynamic system of internal
x Technological changes- A substantial portion of Companys FRQWUROV DQG SURFHGXUHV 7KH V\VWHP FRPSULVHV DXGLW DQG
business depends on the sales of consumer electronics FRPSOLDQFHE\LQKRXVH,QWHUQDO$XGLW'HSDUWPHQW7KHSURFHGXUH
SURGXFWV $V QHZ IHDWXUHV DQG DSSOLFDWLRQV RI HOHFWURQLF followed is as under:
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different from the ones they supersede, there is always risk to
Department The
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The reviews
submits
x Cross- border competition- Customers increasingly want more Internal Prepare reports are and
the Report
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from their appliances and manufacturers are working incredibly to the
conduct Report and with the
Audit
hard to differentiate themselves in a competitive market in terms audit Audit Plan Statutory adequacy
Committee
of offering products that are easy to use and have innovative Auditors of internal and the
controls
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29
ANNUAL REPORT 2013
LQYHVWPHQWV DQG VHFXULWLHV GLYLVLRQ SURW RQ VDOH RI [HG DVVHWV MATERIAL DEVELOPMENTS ON HUMAN RESOURCE
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The Company continues its efforts of providing a high level of global
Expenditure RULHQWDWLRQDQGZRUNLQJH[SHULHQFHWRDODUJHQXPEHURIPDQDJHUV
Cost of Goods Consumed/Sold by deputing them in international assignments, participation in
workshops/seminars/forums, identifying and developing high
During the period under review, Cost of Goods Consumed stood potential managers through Management Development Programs
at `0LOOLRQDVDJDLQVW`0LOOLRQIRUWKH\HDU HWF 7KH &RPSDQ\ HQFRXUDJHV LWV HPSOR\HHV WR SULRULWLHV
HQGHGRQVW'HFHPEHU EHWZHHQ ZRUN DQG D VDWLVI\LQJ HQULFKLQJ OLIH %DVHG RQ WKH
UHVXOWVRIDQ(PSOR\HH+DSSLQHVV6XUYH\WKH&RPSDQ\IRFXVHG
Production and Exploration Expenses for Oil and Gas
on improvements in the area of training and development of
During the period under review, the Production and E[SORUDWLRQ HPSOR\HHV 6LJQLFDQW HIIRUWV DQG PHDVXUHV KDYH EHHQ WDNHQ WR
E[SHQVHV IRU Oil and Gas were ` Million as against integrate more women in the organization and to create an inclusive
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7D[ ([SHQVHV LQFOXGHV Current TD[ 'HIHUUHG 7D[ DQG ([FHVV CAUTIONARY STATEMENT
Short PURYLVLRQ RI ,QFRPH 7D[ IRU HDUOLHU \HDUV )RU WKH SHULRG
HQGHGWK-XQH7D[([SHQVHVCredit ` 0LOOLRQDV Statements in this report describe the Companys objectives,
DJDLQVW7D[([SHQVHVRI` 0LOOLRQIRUWKH\HDUHQGHGRQ projections, estimates, expectations and predictions, may be
VW'HFHPEHU forward looking statements within the meaning of applicable
securities, laws and regulations. Actual results could differ
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materially from those expressed or implied. The Company
1HW /RVV IRU WKH SHULRG HQGHG WK -XQH DPRXQWHG WR assumes no responsibility to publicly amend, modify or
`0LOOLRQDVDJDLQVWD1HWPURWRI`0LOOLRQIRUWKH revise any forward looking statements, on the basis of any
\HDUHQGHGVW'HFHPEHU subsequent development, information or events or otherwise.
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
VLJQLFDQW HVWLPDWHV PDGH E\ PDQDJHPHQW DV ZHOO DV HYDOXDWLQJ WKH RYHUDOO QDQFLDO VWDWHPHQW SUHVHQWDWLRQ :H EHOLHYH WKDW RXU DXGLW SURYLGHV D
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
DXGLWZHJLYHLQWKH$QQH[XUHKHUHWRDVWDWHPHQWRQWKHPDWWHUVVSHFLHGLQSDUDJUDSKVDQGRIWKHVDLG2UGHU
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:
a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
Proper returns adequate for the purpose of our audit have been received from branches not visited by us. The branch Auditors Reports have been
forwarded to us and have been appropriately dealt with;
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and with the audited returns from the foreign branches;
G ,QRXURSLQLRQWKH%DODQFH6KHHW6WDWHPHQWRI3URWDQG/RVVDQGWKH&DVK)ORZ6WDWHPHQWGHDOWZLWKE\WKLVUHSRUWFRPSO\ZLWKWKH$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) $VPHQWLRQHGLQ1RWH1RWRWKHQDQFLDOVWDWHPHQWVWKH&RPSDQ\KDVGLUHFWO\DQGWKURXJKLWVVXEVLGLDULHVPDGHLQYHVWPHQWVRI` 49,337.50
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WKH'HSDUWPHQWRI7HOHFRPPXQLFDWLRQV'R7WRSURYLGH8QLHG$FFHVV6HUYLFH8$6LQFLUFOHVLQ,QGLDZHIWK-DQXDU\ZKLFKZHUH
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7KH+RQEOH6XSUHPH&RXUWRI,QGLDYLGHLWVRUGHUDQGMXGJPHQWGDWHGQG)HEUXDU\-XGJPHQWLQWZRVHSDUDWHZULWSHWLWLRQVTXDVKHGWKH
8$6OLFHQVHVJUDQWHGRQRUDIWHUWK-DQXDU\SXUVXDQWWRWZRSUHVVUHOHDVHVLVVXHGRQWK-DQXDU\DQGWKHVXEVHTXHQWDOORFDWLRQ
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DZDUGHGWKH8QLHG/LFHQVHV$FFHVV6HUYLFHVIRUFLUFOHVZHIWK)HEUXDU\ZKLFKDUHYDOLGIRUDSHULRGRI\HDUV97/KDVDOVREHHQ
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97/KDVEHHQFRQWLQXRXVO\LQFXUULQJORVVHVDQGKDVKXJHDFFXPXODWHGORVVHVDVDWWK-XQH7KHDELOLW\RI97/WRFRQWLQXHDVDJRLQJ
FRQFHUQLVVXEVWDQWLDOO\GHSHQGHQWRQLWVDELOLW\WRIXQGLWVRSHUDWLQJDQGFDSLWDOIXQGLQJUHTXLUHPHQWV97/LVFRQGHQWRIPRELOL]LQJWKHQHFHVVDU\
UHVRXUFHVIRUFRQWLQXLQJLWVRSHUDWLRQVDVSHUWKHEXVLQHVVSODQ
+RZHYHULQYLHZRIWKHDFFXPXODWHGORVVHVRI97/ZHDUHXQDEOHWRH[SUHVVDQRSLQLRQRQWKHH[WHQWRIUHDOLVDELOLW\RIDIRUHVDLGLQYHVWPHQWVLQ
DQGDGYDQFHVWR97/7KHFRQVHTXHQWLDOHIIHFWRIWKHDERYHRQDVVHWVDQGOLDELOLWLHVDVDWWK-XQHDQGWKHORVVIRUWKHSHULRGHQGHGRQ
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in the operations of the joint ventures based on the statements received from the respective Operator. The Company has received the audited
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respect of Ravva Oil & Gas Field Joint Venture on which we have placed reliance.
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LQ SDUDJUDSK I DERYH WKH LPSDFW RI ZKLFK RQ WKH QDQFLDO VWDWHPHQWV RI WKH &RPSDQ\ LI DQ\ LV XQDVFHUWDLQDEOH and read together with the
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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;
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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 LIMITEDWKH&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
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(c) The Company is maintaining proper records of inventory. As per the information and explanations given to us, the discrepancies noticed on physical
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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,
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E $VWKH&RPSDQ\KDVQHLWKHUJUDQWHGQRUWDNHQDQ\ORDQVVHFXUHGRUXQVHFXUHGWRIURPFRPSDQLHVUPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHU
PDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FWVXEFODXVHVEFGIDQGJRI&ODXVHLLLRISDUDJUDSKRIWKH2UGHUDUHQRW
applicable.
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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) (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
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party during the period, have been made at prices which are reasonable having regard to prevailing market price at the relevant time.
(vi) 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.
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(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 Nature of Dues ` in Million Forum where dispute is pending
1. Customs Act, 1962 Custom Duty and Penalties 315.31 Supreme Court
15.15 High Court
50.24 CESTAT
4.37 Commissioner (Appeals)
72.46 Commissioner
15.49 Joint Commissioner
18.28 Deputy Commissioner
7.75 Asst. Commissioner
2. Central Excise Act, 1944 Excise Duty and Penalties 1.11 Supreme Court
27.81 High Court
449.34 CESTAT
3.61 Tribunal
0.96 Commissioner (Appeals)
338.93 Commissioner
25.50 Addl. Commissioner
0.85 Deputy Commissioner
110.46 Asst. Commissioner
3. Finance Act, 1994 Service Tax and Penalties 24.68 CESTAT
(Service Tax Provisions) 0.52 Commissioner (Appeals)
14.09 Commissioner
1.94 Addl. Commissioner
4.18 Asst. Commissioner
0.11 Superintendent
32
Name of Statute Nature of Dues ` in Million Forum where dispute is pending
4. Central Sales Tax Act, 1956 and Sales Tax 0.46 Supreme Court
State Sales Tax Acts of various 0.85 High Court
States
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[LLLRISDUDJUDSKRIWKH2UGHULVQRW
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.
33
ANNUAL REPORT 2013
BALANCE SHEET AS AT 30TH JUNE, 2013
(` in Million)
As at As at
Particulars Note No.
30th June, 2013 31st Dec., 2011
As per our report of even date For and on behalf of the Board
For KHANDELWAL JAIN & CO. For KADAM & CO. V. N. DHOOT
&KDUWHUHG$FFRXQWDQWV &KDUWHUHG$FFRXQWDQWV &KDLUPDQDQG0DQDJLQJ'LUHFWRU
Place : Mumbai
Date : 29th November, 2013
34
STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 1ST JANUARY, 2012 TO 30TH JUNE, 2013
(` in Million)
Period ended Year ended
Particulars Note No.
30th June, 2013 31st Dec., 2011
I. INCOME
Revenue from Operations 20 187,753.84 129,194.70
/HVV([FLVH'XW\ 6,181.09 2,692.48
Net Revenue from Operations 181,572.75 126,502.22
Other Income 21 4,182.66 1,063.12
Total Income 185,755.41 127,565.34
II. EXPENSES
Cost of Materials Consumed 22 56,643.70 40,562.96
3XUFKDVHRI6WRFNLQ7UDGH 23 59,133.82 38,501.83
&KDQJHVLQ,QYHQWRULHVRI)LQLVKHG*RRGV:RUNLQ 24 (577.32) (140.41)
3URFHVVDQG6WRFNLQ7UDGH
6LJQLFDQW$FFRXQWLQJ3ROLFLHV 1
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. For KADAM & CO. V. N. DHOOT
&KDUWHUHG$FFRXQWDQWV &KDUWHUHG$FFRXQWDQWV &KDLUPDQDQG0DQDJLQJ'LUHFWRU
Place : Mumbai
Date : 29th November, 2013
35
ANNUAL REPORT 2013
CASH FLOW STATEMENT FOR THE PERIOD ENDED ON 30TH JUNE, 2013
(` in Million)
Period ended on Year ended on
Particulars
30th June, 2013 31st Dec., 2011
A. CASH FLOW FROM OPERATING ACTIVITIES
3URW/RVVEHIRUH7D[ (1,145.16) 7,733.72
Adjustments for:
Depreciation and Amortisation 8,243.50 6,075.64
Finance Costs 27,148.18 9,777.89
Provision for Warranty and Maintenance Expenses 21.09 (6.36)
Provision for Gratuity 64.64 15.30
3URYLVLRQIRU/HDYH(QFDVKPHQW 10.38 (2.73)
Provision for Abandonment and Site Restoration Costs 135.65 187.97
Provision for Doubtful Debts 91.27 40.74
Interest Received (491.40) (487.06)
Diminution/(Write back) in Value of Investments (1.73) 180.82
Income from Investments and Securities Division (43.82) (279.70)
3URWRQ6DOHRI)L[HG$VVHWV (637.11) (178.94)
2SHUDWLQJ3URWEHIRUH:RUNLQJ&DSLWDO&KDQJHV 33,395.49 23,057.29
Adjustments for:
Inventories (771.88) (405.71)
Trade Receivables (913.85) (1,071.86)
/RDQVDQG$GYDQFHV (43,420.99) (87,305.99)
Other Current Assets 103.07 (343.38)
Trade Payables (313.71) 5,252.42
2WKHU&XUUHQW/LDELOLWLHV 5,107.96 10,553.78
Cash generated from/(used in) Operations (6,813.91) (50,263.45)
/HVV7D[HV3DLG5HIXQGQHW (20.59) 1,334.33
1HW&DVKIURPXVHGLQ2SHUDWLQJ$FWLYLWLHV (A) (6,793.32) (51,597.78)
B. CASH FLOW FROM INVESTING ACTIVITIES
Sale of Fixed Assets 1,083.29 1,282.14
3XUFKDVHRI)L[HG$VVHWV,QFOXGLQJ&DSLWDO:RUNLQ3URJUHVV (11,631.77) (12,284.38)
Interest Received 491.40 487.06
(Increase) in Fixed Deposits and Other Bank Balances 306.17 5,288.36
(Purchase)/Sale of Investments (Net) 4,127.85 (3,842.66)
(Increase) in Investments in Subsidiaries (Net) (6,058.44) (1,095.63)
Income from Investments and Securities Division 43.82 279.70
1HW&DVKIURPXVHGLQ,QYHVWLQJ$FWLYLWLHV (B) (11,637.68) (9,885.41)
C. CASH FLOW FROM FINANCING ACTIVITIES
Increase in Equity Share Capital 157.53 10.63
(Decrease) in Preference Share Capital (155.95) (150.84)
Share Premium Received 2,642.80 243.88
,QFUHDVHLQ/RQJ7HUP%RUURZLQJV 63,349.70 26,894.13
Increase/(Decrease) in Short Term Borrowings (20,040.44) 42,975.04
Redemption Premium paid on Foreign Currency Convertible Bonds - (1,133.67)
Finance Costs (27,148.18) (9,777.89)
Payment of Dividend (211.25) (350.55)
Tax on Dividend (31.33) (57.81)
Share Issue Expenses (12.91) (0.25)
1HW&DVKIURPXVHGLQ)LQDQFLQJ$FWLYLWLHV (C) 18,549.97 58,652.67
Net Change in Cash and Cash Equivalents (A+B+C) 118.97 (2,830.52)
Cash and Cash Equivalents at beginning of the period 1,150.82 3,981.34
Cash and Cash Equivalents at end of the period 1,269.79 1,150.82
Other Bank Balances 3,588.47 3,894.64
&DVKDQG%DQN%DODQFHVDWWKHHQGRIWKHSHULRG1RWH1R 4,858.26 5,045.46
As per our report of even date For and on behalf of the Board
For KHANDELWAL JAIN & CO. For KADAM & CO. V. N. DHOOT
&KDUWHUHG$FFRXQWDQWV &KDUWHUHG$FFRXQWDQWV &KDLUPDQDQG0DQDJLQJ'LUHFWRU
Place : Mumbai
Date : 29th November, 2013
36
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
A) Basis of Accounting GHSUHFLDWLRQLVSURYLGHGRQVWUDLJKWOLQHPHWKRGDWWKHUDWHVVSHFLHGLQ
D 7KH QDQFLDO VWDWHPHQWV DUH SUHSDUHG XQGHU KLVWRULFDO FRVW the said Schedule or based on useful life of assets whichever is higher.
convention, except for certain Fixed Assets which are revalued, 'HSUHFLDWLRQRQ[HGDVVHWVKHOGRXWVLGH,QGLDLVSURYLGHGRQVWUDLJKW
using the accrual system of accounting in accordance with the line method at the rates prescribed in the aforesaid Schedule or based
accounting principles generally accepted in India (Indian GAAP) on useful life of assets whichever is higher. Producing Properties are
and the requirements of the Companies Act, 1956, including depleted using the Unit of Production Method. The rate of depletion
the mandatory Accounting Standards as prescribed by the LVFRPSXWHGLQSURSRUWLRQRIRLODQGJDVSURGXFWLRQDFKLHYHGYLVDYLV
Companies (Accounting Standards) Rules, 2006. SURYHGUHVHUYHV/HDVHKROG/DQGLVDPRUWLVHGRYHUWKHSHULRGRIOHDVH
7KH SUHSDUDWLRQ RI QDQFLDO VWDWHPHQWV LQ FRQIRUPLW\ ZLWK G) Impairment of Assets
Generally Accepted Accounting Principles (GAAP) requires The Fixed Assets or a group of assets (cash generating unit) and
the management of the Company to make estimates and Producing Properties are reviewed for impairment at each Balance
assumptions that affect the reported balances of assets and Sheet date. In case of any such indication, the recoverable amount of
liabilities and disclosures relating to the contingent liabilities as these assets or group of assets is determined, and if such recoverable
DW WKH GDWH RI WKH QDQFLDO VWDWHPHQWV DQG UHSRUWHG DPRXQWV amount of the asset or cash generating unit to which the asset belongs
of income and expenses during the period. Example of such is less than its carrying amount, the impairment loss is recognised
estimates include provisions for doubtful debts, employee by writing down such assets and Producing Properties to their
UHWLUHPHQWEHQHWVSODQVSURYLVLRQIRULQFRPHWD[DQGWKHXVHIXO recoverable amount. An impairment loss is reversed if there is change
OLYHV RI [HG DVVHWV 7KH GLIIHUHQFH EHWZHHQ WKH DFWXDO UHVXOWV in the recoverable amount and such loss either no longer exists or has
DQGHVWLPDWHVDUHUHFRJQL]HGLQWKHSHULRGLQZKLFKUHVXOWVDUH decreased.
NQRZQRUPDWHULDOL]HG
H) Investments
% )L[HG$VVHWV&DSLWDO:RUNLQ3URJUHVV
a) Current Investments: Current Investments are carried at lower of
D )L[HG$VVHWV DUH VWDWHG DW FRVW H[FHSW IRU FHUWDLQ [HG DVVHWV cost or quoted/fair value.
which have been stated at revalued amounts, less accumulated
depreciation/amortisation and impairment loss, if any. The cost b) Non Current Investments: Non Current Investments are stated
LV LQFOXVLYH RI IUHLJKW LQVWDOODWLRQ FRVW GXWLHV WD[HV QDQFLQJ at cost. The decline in the value of the investment, other than
cost and other incidental expenses related to the acquisition and temporary, is provided for.
installation of the respective assets but does not include tax/duty
credits availed. c) Cost is inclusive of brokerage, fees and duties but excludes
Securities Transaction Tax.
b) Capital Work in Progress is carried at cost, comprising of direct
cost, attributable interest and related incidental expenditure. I) Inventories
C) Joint Ventures for Oil and Gas Fields Inventories including crude oil stocks are valued at cost or net
realisable value whichever is lower. Cost of inventories comprises all
In respect of unincorporated joint ventures in the nature of Production costs of purchase, conversion and other costs incurred in bringing the
Sharing Contracts (PSC) entered into by the Company for oil and inventories to their present location and condition. Cost is determined
gas exploration and production activities, the Companys share in the on Weighted Average Basis.
assets and liabilities as well as income and expenditure of Joint Venture
Operations are accounted for, according to the Participating Interest of J) Borrowing Costs
the Company as per the PSC and the Joint Operating Agreements on a Borrowing costs that are directly attributable to the acquisition,
OLQHE\OLQHEDVLVLQWKH&RPSDQ\V)LQDQFLDO6WDWHPHQWV,QUHVSHFWRI construction or production of an qualifying asset are capitalised as
joint ventures in the form of incorporated jointly controlled entities, the part of the cost of that asset. A qualifying asset is one that necessarily
investment in such joint venture is treated as long term investment and takes substantial period of time to get ready for intended use. Other
carried at cost. The decline in value, other than temporary, is provided borrowing costs are recognised as an expense in the period in which
for. they are incurred.
D) Exploration, Development Costs and Producing Properties K) Excise and Customs Duty
The Company follows the Full Cost method of accounting for its oil ([FLVH'XW\LQUHVSHFWRIQLVKHGJRRGVO\LQJLQWKHIDFWRU\SUHPLVHV
and natural gas exploration and production activities. Accordingly, all and Customs Duty on goods lying in customs bonded warehouse are
acquisition, exploration and development costs are treated as capital provided for and included in the valuation of inventory.
ZRUNLQSURJUHVV DQG DUH DFFXPXODWHG LQ D FRVW FHQWUH 7KH FRVW
centre is not, normally, smaller than a country except where warranted / &(19$79DOXH$GGHG7D[
E\PDMRUGLIIHUHQFHLQHFRQRPLFVFDORURWKHUIDFWRUVLQWKHFRXQWU\ &(19$79DOXH $GGHG 7D[ %HQHW LV DFFRXQWHG IRU E\ UHGXFLQJ WKH
When any well in a cost centre is ready to commence commercial SXUFKDVHFRVWRIWKHPDWHULDOV[HGDVVHWVVHUYLFHV
SURGXFWLRQWKHVHFRVWVDUHFDSLWDOLVHGIURPFDSLWDOZRUNLQSURJUHVVWR
producing properties in the gross block of assets regardless of whether M) Revenue Recognition
RUQRWWKHUHVXOWVRIVSHFLFFRVWVDUHVXFFHVVIXO
D 5HYHQXHLVUHFRJQLVHGRQWUDQVIHURIVLJQLFDQWULVNDQGUHZDUG
E) Abandonment Costs in respect of ownership.
The full eventual estimated liability towards costs relating to dismantling, b) Sales/turnover includes sales value of goods, services, excise
abandoning and restoring well sites and allied facilities is recognised as duty, duty drawback and other recoveries such as insurance,
liability for abandonment cost based on evaluation by experts at current transportation and packing charges but excludes sale tax, value
costs and is capitalised as producing property. The same is reviewed DGGHGWD[DQGUHFRYHU\RIQDQFLDODQGGLVFRXQWLQJFKDUJHV
periodically.
c) Revenue from sale of electrical energy is accounted for on
F) Depreciation, Amortisation and Depletion the basis of billing as per the provisions of Power Purchase
Agreement.
7KH &RPSDQ\ SURYLGHV GHSUHFLDWLRQ RQ [HG DVVHWV KHOG LQ ,QGLD RQ
ZULWWHQGRZQYDOXHPHWKRGLQWKHPDQQHUDQGDWWKHUDWHVVSHFLHGLQWKH d) Insurance, Duty Drawback and other claims are accounted for as
Schedule XIV to the Companies Act, 1956, except, a) on Fixed Assets and when admitted by the appropriate authorities.
37
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
e) Dividend on investments is recognised when the right to receive LLL /HDYH(QFDVKPHQW
is established.
/LDELOLW\LQUHVSHFWRIOHDYHHQFDVKPHQWLVGHWHUPLQHGXVLQJ
N) Foreign Currency Transactions the projected unit credit method with actuarial valuations as
RQWKH%DODQFH6KHHWGDWHDQGJDLQVORVVHVDUHUHFRJQL]HG
a) Transactions in foreign currencies are recorded at the exchange LPPHGLDWHO\LQWKH6WDWHPHQWRI3URWDQG/RVV
rate prevailing on the date of transactions. Foreign Currency
0RQHWDU\ $VVHWV DQG /LDELOLWLHV DUH WUDQVODWHG DW WKH \HDU HQG Q) Taxation
rate. The difference between the rate prevailing on the date of Income tax comprises of current tax and deferred tax. Provision for
transaction and on the date of settlement as also on translation FXUUHQWLQFRPHWD[LVPDGHRQWKHDVVHVVDEOHLQFRPHEHQHWVDWWKH
of Monetary Items at the end of the period is recognised, as the rate applicable to relevant assessment year. Deferred tax assets and
case may be, as income or expense for the period. liabilities are recognised for the future tax consequences of timing
b) Forward contracts other than those entered into to hedge foreign differences, subject to the consideration of prudence. Deferred tax
FXUUHQF\ ULVN RQ XQH[HFXWHG UP FRPPLWPHQWV RU RI KLJKO\ assets and liabilities are measured using the tax rates enacted or
probable forecast transactions are treated as foreign currency substantively enacted by the Balance Sheet date. The carrying amount
transaction and accounted accordingly. Exchange differences of deferred tax asset/liability are reviewed at each Balance Sheet date
arising on such contracts are recognised in the period in which and recognised and carried forward only to the extent that there is a
they arise and the premium paid/received is recognised as reasonable certainty that the asset will be realised in future.
H[SHQVHVLQFRPH RYHU WKH SHULRG RI WKH FRQWUDFW &DVK RZV R) Share Issue Expenses
arising on account of roll over/cancellation of forward contracts
are recognised as income/expenses of the period in line with the Share issue expenses are written off to Securities Premium Account.
movement in the underlying exposure. 6 3UHPLXPRQ5HGHPSWLRQRI%RQGV'HEHQWXUHV
c) All other derivative contracts including forward contract entered Premium on Redemption of Bonds/Debentures are written off to
LQWR IRU KHGJLQJ IRUHLJQ FXUUHQF\ ULVNV RQ XQH[HFXWHG UP Securities Premium Account.
commitments and highly probable forecast transactions which
T) Research and Development
are not covered by the existing Accounting Standard (AS) 11,
DUH UHFRJQLVHG LQ WKH QDQFLDO VWDWHPHQWV DW IDLU YDOXH DV RQ Revenue expenditure pertaining to Research and Development
the Balance Sheet date, in pursuance of the announcement of is charged to revenue under the respective heads of account in the
the Institute of Chartered Accountants of India (ICAI) dated 29th period in which it is incurred. Capital expenditure, if any, on Research
March, 2008, on accounting of derivatives. The resultant gains and Development is shown as an addition to Fixed Assets under the
and losses on fair valuation of such contracts are recognised in respective heads.
WKH6WDWHPHQWRI3URWDQG/RVV U) Accounting for Leases
2 7UDQVODWLRQRIWKHQDQFLDOVWDWHPHQWVRIIRUHLJQEUDQFK Where the Company is lessee:
a) Revenue items are translated at average rates. D 2SHUDWLQJ/HDVHV5HQWDOVLQUHVSHFWRIDOORSHUDWLQJOHDVHVDUH
FKDUJHGWR6WDWHPHQWRI3URWDQG/RVV
b) Opening and closing inventories are translated at the rate
prevalent at the commencement and close, respectively, of the E )LQDQFH/HDVHV
accounting year.
L 5HQWDOVLQUHVSHFWRIDOOQDQFHOHDVHVHQWHUHGEHIRUHVW
c) Fixed assets are translated at the exchange rate as on the date $SULODUHFKDUJHGWR6WDWHPHQWRI3URWDQG/RVV
RI WKH WUDQVDFWLRQ 'HSUHFLDWLRQ RQ [HG DVVHWV LV WUDQVODWHG DW LL $VVHWVDFTXLUHGRQRUDIWHUVW$SULOXQGHUQDQFH
the rates used for translation of the value of the assets to which it lease or similar arrangements which effectively transfer
relates. WR WKH &RPSDQ\ VXEVWDQWLDOO\ DOO WKH ULVNV DQG EHQHWV
d) Other current assets and current liabilities are translated at the incidental to ownership of the leased items, are capitalised
closing rate. at the lower of their fair value and present value of the
minimum lease payments and are disclosed as leased
3 (PSOR\HH%HQHWV assets.
D 6KRUW7HUP(PSOR\HHV%HQHWV V) Warranty
6KRUW7HUP(PSOR\HHV%HQHWVDUHUHFRJQL]HGDVDQH[SHQVHDW Provision for the estimated liability in respect of warranty on sale of
WKHXQGLVFRXQWHGDPRXQWLQWKH6WDWHPHQWRI3URWDQG/RVVIRU consumer electronics and home appliances products is made in
the period/year in which the related services are rendered. the year in which the revenues are recognised, based on technical
evaluation and past experience.
E 3RVW(PSOR\PHQW%HQHWV
W) Provisions, Contingent Liabilities and Contingent Assets
L 3URYLGHQW)XQG'HQHG&RQWULEXWLRQ3ODQ
Provisions are recognised when there is a present obligation as a
The Company contributes monthly at a determined rate. UHVXOWRISDVWHYHQWVDQGLWLVSUREDEOHWKDWWKHUHZLOOEHDQRXWRZRI
These contributions are remitted to the Employees
resources in respect of which reliable estimates can be made.
Provident Fund Organisation, India for this purpose and is
FKDUJHGWR6WDWHPHQWRI3URWDQG/RVVRQDFFUXDOEDVLV &RQWLQJHQW /LDELOLWLHV DUH QRW UHFRJQLVHG EXW DUH GLVFORVHG LQ WKH
Notes. Disputed demands in respect of Central Excise, Custom duty,
LL *UDWXLW\'HQHG%HQHW3ODQ
Income tax, Sales tax and Others are disclosed as contingent liabilities.
The Company provides for gratuity to all the eligible Payment in respect of such demands, if any, is shown as an advance,
HPSOR\HHV7KHEHQHWLVLQWKHIRUPRIOXPSVXPSD\PHQWV WLOOWKHQDORXWFRPHRIWKHPDWWHU
to vested employees on retirement, on death while in &RQWLQJHQWDVVHWVDUHQRWUHFRJQLVHGLQWKHQDQFLDOVWDWHPHQWV
employment, or termination of employment for an amount
equivalent to 15 days salary payable for each completed X) Prior period items
\HDURIVHUYLFH9HVWLQJRFFXUVRQFRPSOHWLRQRIYH\HDUV
Prior period items are included in the respective heads of accounts and
RIVHUYLFH/LDELOLW\LQUHVSHFWRIJUDWXLW\LVGHWHUPLQHGXVLQJ
material items are disclosed by way of Notes to Financial Statements.
the projected unit credit method with actuarial valuations as
RQWKH%DODQFH6KHHWGDWHDQGJDLQVORVVHVDUHUHFRJQL]HG Y) Other Accounting Policies
LPPHGLDWHO\LQWKH6WDWHPHQWRI3URWDQG/RVV
These are consistent with the generally accepted accounting principles.
38
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
(` in Million)
As at As at
2. SHARE CAPITAL 30th June, 31st Dec.,
2013 2011
Authorised:
500,000,000 (Previous year 500,000,000) Equity Shares of `HDFK 5,000.00 5,000.00
10,000,000 (Previous year 10,000,000) Redeemable Preference Shares of `HDFK 1,000.00 1,000.00
Total 6,000.00 6,000.00
Issued, Subscribed and Paid-up:
Equity Shares
318,771,669 (Previous year 303,021,669) Equity Shares of `HDFKIXOO\SDLGXS 3,187.72 3,030.22
/HVV&DOOVLQ$UUHDUVE\RWKHUV 0.08 0.11
(a) 3,187.64 3,030.11
Preference Shares
i) 4,523,990 (Previous year 4,523,990) 8% Cumulative Redeemable Preference Shares of ` 33.32 150.74 301.56
each (Previous year `HDFKIXOO\SDLGXSUHGHHPDEOHDWSDURQVW2FWREHU
ii) 76,870 (Previous year 76,870) 8% Cumulative Redeemable Preference Shares of ` 33.34 each 2.56 7.69
(Previous year `HDFKIXOO\SDLGXSUHGHHPDEOHDWSDURQVW)HEUXDU\
(b) 153.30 309.25
Total (a+b) 3,340.94 3,339.36
39
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
(` in Million)
As at As at
3. RESERVES AND SURPLUS 30th June, 31st Dec.,
2013 2011
a) Capital Reserve (including Capital Subsidy)
As per last Balance Sheet 9.75 9.75
(a) 9.75 9.75
b) Capital Redemption Reserve
As per last Balance Sheet 688.33 537.50
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 155.96 150.83
(b) 844.29 688.33
c) Securities Premium Account
As per last Balance Sheet 43,559.42 43,403.87
Add: Received during the year 2,642.09 242.85
/HVV6KDUH,VVXH([SHQVHV 12.91 0.25
/HVV3UHPLXPSD\DEOHRQ5HGHPSWLRQRI&RQYHUWLEOH%RQGV - 87.05
46,188.60 43,559.42
/HVV&DOOVLQ$UUHDUVE\RWKHUV 1.59 2.30
(c) 46,187.01 43,557.12
d) %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH
As per last Balance Sheet 1,053.17 3,029.64
$GG/HVV7UDQVIHUUHGIURPWR6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 1,909.34 (1,976.47)
(d) 2,962.51 1,053.17
e) General Reserve
As per last Balance Sheet 16,201.48 15,201.48
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 300.00 1,000.00
(e) 16,501.48 16,201.48
f) 6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV
As per last Balance Sheet 34,680.55 28,680.29
$GG3URW/RVVIRUWKHSHULRG (716.32) 5,399.11
Add: Transferred from Bond/Debenture Redemption Reserve - 1,976.47
Balance available for Appropriations 33,964.23 36,055.87
Less: Appropriations
Transfer to Capital Redemption Reserve 155.96 150.83
Transfer to Bond/Debenture Redemption Reserve 1,909.34
Transfer to General Reserve 300.00 1,000.00
3URSRVHG'LYLGHQG(TXLW\6KDUHV 198.77 159.39
3URSRVHG'LYLGHQG3UHIHUHQFH6KDUHV 27.68 33.77
Tax on Proposed Dividend 38.48 31.33
(f) 31,334.00 34,680.55
Total (a to f) 97,839.04 96,190.40
(` in Million)
As at 30th June, 2013 As at 31st Dec., 2011
4. LONG-TERM BORROWINGS
Non-Current Current 1RQ&XUUHQW Current
a) Secured
1RQ&RQYHUWLEOH'HEHQWXUHV - - 21.60
7HUP/RDQV
L 5XSHH7HUP/RDQVIURP%DQNV 140,291.04 7,263.32 40,868.44 15,207.16
LL 5XSHH7HUP/RDQVIURP)LQDQFLDO,QVWLWXWLRQV 9,338.05 900.48 1,421.56 983.59
iii) External Commercial Borrowings - 589.41 1,164.44 1,541.58
LY 9HKLFOH/RDQIURP%DQNV 151.79 130.35 147.18 75.48
(a) 149,780.88 8,883.56 43,601.62 17,829.41
b) Unsecured
5XSHH/RDQVIURP%DQNV - 2,000.00 6,749.94 30,331.36
Foreign Currency Convertible Bonds 11,652.34 - 10,423.73
Sales Tax Deferral 16.64 8.78 40.93 15.51
(b) 11,668.98 2,008.78 17,214.60 30,346.87
Total (a+b) 161,449.86 10,892.34 60,816.22 48,176.28
4.1 Secured Loans:
a) 5XSHH7HUP/RDQVIURP%DQNVDQG)LQDQFLDO,QVWLWXWLRQV
L 7KH&RPSDQ\DORQJZLWKRWKHUDIOLDWHVHQWLWLHVFROOHFWLYHO\UHIHUUHGWRDV2EOLJRUVDQGLQGLYLGXDOO\UHIHUUHGWRDV%RUURZHUH[HFXWHG
IDFLOLW\DJUHHPHQWZLWKFRQVRUWLXPRIH[LVWLQJGRPHVWLFUXSHHWHUPOHQGHUVLQWKHREOLJRUFRREOLJRUVWUXFWXUHZKHUHLQDOOWKH5XSHH7HUP
/RDQVRIWKH2EOLJRUVDUHSRROHGWRJHWKHU7KH%RUURZHUHQWLWLHVFRYHUHGDUH9LGHRFRQ,QGXVWULHV/LPLWHG9,/9DOXH,QGXVWULHV/LPLWHG
7UHQG(OHFWURQLFV/LPLWHG.$,//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
,GHQWLHG3URSHUWLHVRIHDFKRIWKH%RUURZHUUVWSDULSDVVX charge on the Trust and Retention Accounts of the Borrowers, second SDULSDVVX charge
RQ,GHQWLHG$VVHWVRI9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHGV9++/VXEVLGLDULHVWKURXJKSOHGJHRIHQWLUHVKDUHKROGLQJRI9++/LQWKHVHRYHUVHDV
VXEVLGLDULHVVHFRQGFKDUJHRQSOHGJHRIVKDUHVRI9LGHRFRQ2LO9HQWXUHV/LPLWHGDQG9++/VHFRQGSDULSDVVXFKDUJHRQ9++/VVKDUHRIFDVK
RZVIURP,GHQWLHG$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,QFHQWLYHWR3UHVWLJLRXV8QLW0RGLHG6FKHPH2XWRIWRWDORXWVWDQGLQJ
`0LOOLRQLVUHSD\DEOHLQ)<`0LOOLRQLVUHSD\DEOHLQ)<DQGEDODQFHDPRXQWRI`PLOOLRQLVUHSD\DEOHLQ)<
(` in Million)
4.3 0DWXULW\3UROHRI6HFXUHG/RDQV Rupee Loans Rupee Loans Vehicle Loan
IURP%DQNV from Financial IURP%DQNV
Institutions
)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
4.4 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)
As at As at
5. DEFERRED TAX LIABILITY (Net) 30th June, 31st Dec.,
2013 2011
a) 'HIHUUHG7D[/LDELOLW\
Related to Depreciation and Amortisation on Fixed Assets 8,190.78 7,875.11
(a) 8,190.78 7,875.11
b) Deferred Tax Assets
i) ([SHQVHVFKDUJHGLQWKHQDQFLDOVWDWHPHQWVEXWDOORZDEOHDVGHGXFWLRQLQIXWXUH\HDUVXQGHU 128.21 64.02
the Income Tax Act, 1961
ii) &DUULHG)RUZDUG/RVVHV 792.87
iii) Others 192.74 459.88
(b) 1,113.82 523.90
1HW'HIHUUHG7D[/LDELOLW\ (a-b) 7,076.96 7,351.21
6. LONG-TERM PROVISIONS
Provision for Gratuity (Refer Note No. 32B) 145.12 91.09
3URYLVLRQIRU/HDYH(QFDVKPHQW5HIHU1RWH1R% 49.26 39.67
Provision for Abandonment and Site Restoration Costs 1,279.51 1,143.86
Total 1,473.89 1,274.62
7. SHORT-TERM BORROWINGS
Secured
/RDQIURP%DQNV 20,500.00 27,573.50
:RUNLQJ&DSLWDO/RDQVIURP%DQNV 15,476.39 9,351.89
(a) 35,976.39 36,925.39
Unsecured
/RDQIURP%DQNV 7,620.83 40,642.32
/RDQIURP2WKHUV 13,930.05
(b) 21,550.88 40,642.32
Total (a+b) 57,527.27 77,567.71
(` in Million)
8. TRADE PAYABLES As at As at
30th June, 31st Dec.,
2013 2011
Micro, Small and Medium Enterprises 79.93 4.61
Others 11,332.91 11,721.94
Total 11,412.84 11,726.55
42
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
(` in Million)
As at As at
8.1 Disclosure in accordance with Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 : 30th June, 31st Dec.,
2013 2011
a) Principle amount remaining unpaid as at the end of the year 79.93 4.61
b) Interest due thereon as at the end of the year 0.16 0.21
c) Interest paid by the Company in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2.80
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\
(` in Million)
As at As at
9. OTHER CURRENT LIABILITIES 30th June, 31st Dec.,
2013 2011
&XUUHQWPDWXULWLHVRI/RQJWHUP%RUURZLQJV5HIHU1RWH1R 10,892.34 48,176.28
Bank Overdraft as per books 106.14 81.43
Interest accrued but not due on Borrowings 1,878.05 372.43
Interest accrued and due on Borrowings 3,774.88
Unclaimed Dividend 10.44 28.53
Creditors for Capital Expenditure 8,628.35 8,278.61
Payable to Related Parties 9.87 81.69
Other Payables 2,923.86 3,399.03
Total 28,223.93 60,418.00
43
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
Face As at 30th June, 2013 As at 31st Dec., 2011
Value No. of Shares ` in Million No. of Shares ` in Million
12. NON-CURRENT INVESTMENTS
QUOTED
A. In Equity Shares (Fully Paid-up) - Trade
6DPWHO(OHFWURQLFV'HYLFHV/LPLWHG ` 10 82,000 0.11 82,000 0.25
7UHQG(OHFWURQLFV/LPLWHG ` 10 1,408,800 25.41 1,408,800 25.41
9DOXH,QGXVWULHV/LPLWHG ` 10 1,971,973 12.52 1,811,748 25.18
38.04 50.84
B. In Equity Shares (Fully Paid-up) - Others
$,&KDPSGDQ\,QGXVWULHV/LPLWHG `5 18,000 0.36 18,000 0.31
$VLDQ(OHFWURQLFV/LPLWHG `5 40,000 0.13 40,000 0.22
$VVDP&RPSDQ\,QGLD/LPLWHG `1 10,000 0.04 10,000 0.07
%DMDM$XWR/LPLWHG ` 10 20,848 21.66 10,424 16.58
'HFFDQ&HPHQWV/LPLWHG ` 10 - - 221,677 28.60
'KRRW,QGXVWULDO)LQDQFH/LPLWHG ` 10 4,800 0.03 4,800 0.05
([SR*DV&RQWDLQHUV/LPLWHG `4 7,600 0.05 7,600 0.05
*7/,QIUDVWUXFWXUH/LPLWHG ` 10 500,000 0.84 501,900 4.51
,)&,/LPLWHG ` 10 - - 41,800 0.91
,QGEDQN0HUFKDQW%DQNLQJ6HUYLFHV/LPLWHG ` 10 298,557 1.08 298,557 1.95
,QGLD6WHHO:RUNV/LPLWHG ` 10 1,300 - 1,300
[`3,965 (Previous year `3,965)]
,2/1HWFRP/LPLWHG ` 10 1,567,374 9.87 1,567,374 11.38
-D\DVZDO1HFR,QGXVWULHV/LPLWHG ` 10 253,950 1.81 253,950 2.94
/XPD[,QGXVWULHV/LPLWHG ` 10 7,000 2.16 7,000 2.16
0DQ,QGXVWULHV/LPLWHG `5 300,000 28.01
0D[ZHOO,QGXVWULHV/LPLWHG `2 - - 62,953 1.30
0ROG7HN3DFNDJLQJ/LPLWHG ` 10 1,800 0.06 1,800 0.10
3ULPH6HFXULWLHV/LPLWHG `5 1,774,153 6.17 1,853,158 21.39
6KUHH5DP8UEDQ,QIUDVWUXFWXUH/LPLWHG ` 10 85,000 7.36 85,000 11.50
6LHPHQV/LPLWHG `2 - - 3,130 0.13
6UL/DNVKPL6DUDVZDWKL7H[WLOHV$UQL/LPLWHG ` 10 8,700 0.12 8,700 0.12
6XMDQD0HWDO3URGXFWV/LPLWHG `5 168,731 0.12 178,500 0.59
6ZDQ0LOOV/LPLWHG `2 837,629 97.08 998,607 61.51
<HV%DQN/LPLWHG ` 10 - - 3,775 0.69
176.93 167.06
UNQUOTED
A. In Equity Shares (Fully Paid-up) - Trade
$NDL&RQVXPHU(OHFWURQLFV,QGLD/LPLWHG ` 10 35,000 0.35 35,000 0.35
$SSOLFRPS,QGLD/LPLWHG ` 10 17,023,500 170.24 17,023,500 170.24
&(,QGLD/LPLWHG ` 10 911 0.04
Digital Display Devices S.p.A. Euro 1 36,000 1.96 36,000 1.96
(DJOH&RUSRUDWLRQ/LPLWHG US$ 1 1,000 0.05 1,000 0.05
(DJOH(&RUS/LPLWHG US$ 1 10,000 0.44
*RD(QHUJ\3ULYDWH/LPLWHG ` 10 - - 2,600 0.03
+\XQGDL(OHFWURQLFV,QGLD/LPLWHG ` 10 9,500 0.10 9,500 0.10
,QGLDQ5HIULJHUDWRU&RPSDQ\/LPLWHG ` 10 1,990,000 19.90 1,990,000 19.90
Jupitor Corporation Inc US$ 1 190 0.01 190 0.01
.HQWRVK(OHFWURQLFV,QGLD3ULYDWH/LPLWHG ` 10 - - 1,720 0.02
.$,//LPLWHG ` 10 1,521,000 111.26 1,521,000 111.26
0LOOHQQLXP$SSOLDQFHV,QGLD/LPLWHG ` 10 4,750,000 95.00 4,750,000 95.00
1H[W5HWDLO,QGLD/LPLWHG
` 10 21,036,000 650.36 21,036,000 650.36
3OXJLQ6DOHV/LPLWHG ` 100 1,900 0.19 1,900 0.19
PT Videocon Indonesia US$ 50 475 0.94 475 0.94
3RZHUNLQJ&RUSRUDWLRQ/LPLWHG US$ 1 2,711 0.13 2,711 0.13
Quadrant Corporation Inc US$ 1 190 0.01 190 0.01
5DGLXP(QHUJ\3ULYDWH/LPLWHG$VVRFLDWH&RPSDQ\ ` 10 2,600 0.03 2,600 0.03
6DK\DGUL&RQVXPHU(OHFWURQLFV,3ULYDWH/LPLWHG ` 10 - - 1,900 0.02
Sapphire Overseas Inc. US$ 1 1,900 0.08 1,900 0.08
7HFKQR(OHFWURQLFV/LPLWHG ` 10 20,117,647 201.18 20,117,647 201.18
7HN&DUH,QGLD3ULYDWH/LPLWHG ` 10 1,900 0.02 1,900 0.02
9&,/1HWKHUODQGV%9 Euro 100 34 0.13 34 0.13
9HQXV&RUSRUDWLRQ/LPLWHG US$ 1 2,982 0.14 2,982 0.14
&ULVWDO&D\PDQ/LPLWHGIRUPHUO\9LGHRFRQ&D\PDQ/LPLWHG US$ 1 579,500 28.35 579,500 28.35
(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG US$ 1 1,000 0.05
IRUPHUO\9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG
9LGHRFRQ5HDOW\DQG,QIUDVWUXFWXUHV/LPLWHG ` 10 8,125 0.83 8,125 0.83
1,281.75 1,281.30
B. In Equity Shares (Fully Paid-up) - Others
%ROWRQ3URSHUWLHV/LPLWHG ` 10 112,500 13.66 112,500 13.66
&XEH)LQWH[3ULYDWH/LPLWHG ` 10 45,000 22.50
'HYH6XJDUV/LPLWHG ` 10 125,000 0.13 125,000 0.13
(DVH)LQDQFH/LPLWHG ` 10 4,800 0.96 4,800 0.96
(YDQV)UDVHU &R,QGLD/LPLWHG ` 100 91,250 49.13 91,250 49.13
*HHND\([LP,QGLD/LPLWHG ` 10 80,000 0.08 80,000 0.08
*ROG&UHVW(OHFWURQLFV3ULYDWH/LPLWHG ` 10 47,500 0.48 47,500 0.48
*RRG9DOXH0DUNHWLQJ&RPSDQ\/LPLWHG ` 10 25,000 0.03 25,000 0.03
++RVSLWDOLW\3ULYDWH/LPLWHG ` 10 1,900 0.02 1,900 0.02
+RO]PDQQ9LGHRFRQ(QJLQHHUV/LPLWHG ` 10 990,600 - 990,600
.D\.D\&RQVWUXFWLRQ/LPLWHG ` 10 4,500 0.90 4,500 0.90
.RUHV,QGLD/LPLWHG ` 10 1,170,000 1.17 1,170,000 1.17
44
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
Face As at 30th June, 2013 As at 31st Dec., 2011
Value No. of Shares ` in Million No. of Shares ` in Million
NON-CURRENT INVESTMENTS (Contd.)
/H[XV,QIRWHFK/LPLWHG ` 10 500,000 50.00 500,000 50.00
0D\DQN*OREDO)LQDQFH/LPLWHG ` 10 2,218 1.11
0D\DQN6HFXULWLHV3ULYDWH/LPLWHG ` 10 59,420 9.71 2,220 1.11
3DQRUDPD/RJLVWLF6ROXWLRQV/LPLWHG ` 10 5,000 0.05 5,000 0.05
3DUDPRXQW*OREDO/LPLWHG US$ 1 256,000 11.24 256,000 11.24
6KUL6DKD\RJ([KLELWRUV3ULYDWH/LPLWHG ` 1000 - - 375 9.38
6LULV/LPLWHG ` 10 13,200 0.01 13,200 0.01
6N\%LOOLRQ7UDGLQJ/LPLWHG US$ 1 203,680 9.43 203,680 9.43
7DUD+ROGLQJV3ULYDWH/LPLWHG ` 10 30,000 15.00 30,000 15.00
7KH%DQDUDV6WDWH%DQN/LPLWHG ` 100 25,000 0.03 25,000 0.03
7LWDQ5HDOW\3ULYDWH/LPLWHG ` 10 2,500 0.03 2,500 0.03
7ULQLW\,QIUDWHFK3ULYDWH/LPLWHG ` 10 500,000 80.00 500,000 80.00
9HURQLFD3URSHUWLHV3ULYDWH/LPLWHG ` 10 2,500 0.03 2,500 0.03
9LGHRFRQ0DXULWLXV,QIUDVWUXFWXUH9HQWXUHV/LPLWHG US$ 1 100,700 4.29 100,700 4.29
9LGHRFRQ5HDOW\3ULYDWH/LPLWHG ` 10 2,500 0.03 2,500 0.03
9LGHRFRQ6(=,QIUDVWUXFWXUHV3ULYDWH/LPLWHG ` 10 2,500 0.03 2,500 0.03
<DVK9-HZHOV/LPLWHG ` 10 500,000 50.00 500,000 50.00
=RGLDF&RUSRUDWLRQ/LPLWHG US$ 1 190 0.01 190 0.01
320.02 297.18
C. In Equity Shares (Fully Paid-up) - Subsidiaries
&KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG ` 10 10,000 0.10 10,000 0.10
(DJOH(&RUS/LPLWHG US$ 1 - - 10,000 0.44
/LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG ` 10 279,950,000 2,799.50 4,960,000 49.60
0LGGOH(DVW$SSOLDQFHV//& RO 1 2,251,800 270.14 2,251,800 270.14
3LSDYDY(QHUJ\3ULYDWH/LPLWHG
` 10 550,000,000 5,500.00 550,000,000 5,500.00
3URVSHURXV(QHUJ\3ULYDWH/LPLWHG ` 10 10,000 0.10 10,000 0.10
6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG ` 10 1 0.11
9LGHRFRQ(OHFWURQLFV6KHQ]KHQ/LPLWHG US$ 1 135,000 6.42 135,000 6.42
&KLQHVHQDPH:HL\RXNDQJ(OHFWURQLF6KHQ]KHQ&R/WG
9LGHRFRQ(QHUJ\/LPLWHG ` 10 100,000,000 1,000.00 100,000,000 1,000.00
(PHUDOG&RUSRUDWH9HQWXUHV/LPLWHG US$ 1 - - 1,000 0.04
IRUPHUO\9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG
9LGHRFRQ*OREDO/LPLWHG US$ 1 802,500 44.48 2,500 0.12
9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG US$ 1 2,030,000 92.75 2,030,000 92.75
9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG
` 10 3,000,000,000 30,000.00 2,000,000,000 20,000.00
9LGHRFRQ2LO9HQWXUHV/LPLWHG
` 10 100,000,000 1,000.00 100,000,000 1,000.00
9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG
` 10 563,487,120 5,634.87 155,552,000 1,555.52
46,348.47 29,475.23
D. In Equity Shares (Fully Paid-up) - Joint Ventures
9LGHRFRQ,QQLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG ` 10 5,000 0.05 5,000 0.05
0.05 0.05
E. In Preference Shares (Fully Paid-up)
3OXJLQ6DOHV/LPLWHG ` 100 3,800 0.38 3,800 0.38
7UHQG(OHFWURQLFV/LPLWHG ` 100 10,000,000 1,000.00
9LGHRFRQ3RZHU/LPLWHG ` 10 5,000,000 20.00
1,020.38 0.38
F. In Bonds (Fully Paid-up)
Central Bank of India ` 1,000,000 50 50.00 50 50.00
50.00 50.00
G. Other Investments
L ,Q6KDUHV)XOO\3DLGXSRI&R2SHUDWLYH%DQN
$KPHGQDJDU'LVWULFW8UEDQ&HQWUDO&R2SHUDWLYH%DQN/WG ` 50 10 - 10
[` 500 (Previous year ` 500)]
%KDUDWL6DKDNDUL%DQN/LPLWHG ` 50 7,670 0.38 7,670 0.38
%RPED\0HUFDQWLOH&R2SHUDWLYH%DQN/LPLWHG ` 10 4,166 0.04 4,166 0.04
-DQDWD6DKDNDUL%DQN/LPLWHG ` 10 857 0.09 857 0.09
7KH6DUDVZDW&R2SHUDWLYH%DQN/LPLWHG ` 10 1,000 0.01 1,000 0.01
(i) 0.52 0.52
45
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
(` in Million) (` in Million)
As at As at As at As at
13. LONG TERM LOANS AND ADVANCES 30th June, 31st Dec., 30th June, 31st Dec.,
(Unsecured, considered good)
2013 2011 2013 2011
Capital Advances 43.35 466.36 2WKHU%DQN%DODQFHV
Security Deposits 218.73 570.81 In Dividend Warrant Accounts 10.44 28.53
Advance Income Tax (Net of Provision) 138.58 4.58 In Fixed Deposits earmarked towards Site 624.14 279.81
/RDQVDQG$GYDQFHVWR5HODWHG3DUWLHV 47,512.23 35,112.06 Restoration
(Refer Note No. 43) In Fixed Deposits (held as margin money
/RDQVDQG$GYDQFHVWR2WKHUV 26,828.64 18,934.37 for credit facilities)
Total 74,741.53 55,088.18 0DWXULW\PRQWKVRUOHVV 2,791.86 2,166.89
0DWXULW\PRUHWKDQPRQWKV 162.03 1,419.41
Sub-Total 3,588.47 3,894.64
14. CURRENT Face As at 30th June, 2013 As at 31st Dec., 2011
INVESTMENTS- Value Total 4,858.26 5,045.46
Nos. ` in Nos. ` in
8QTXRWHG Million Million
Others
In Units of Mutual 18. SHORT TERM LOANS AND ADVANCES
Funds (Unsecured, considered good)
Baroda Pioneer ` 10 250,000 1.57 250,000 1.61 Balance with Central Excise/Customs 473.05 794.14
PSU Equity Fund Department
Canara Robeco ` 10 250,000 2.50 250,000 2.50 Deposits 16.32
0XOWLFDS*URZWK
/RDQV DQG $GYDQFHV WR 5HODWHG 3DUWLHV 5,919.07 14,661.03
HDFC PMS Real ` 10 325,960 3.26 400,000 4.00
(Refer Note No. 43)
Estate Fund
/RDQVDQG$GYDQFHVWR2WKHUV 117,254.69 84,306.32
,')&&DVK)XQG ` 1,000 24,074 34.30
Growth Total 123,663.13 99,761.49
Peninsula Realty
)XQG,QGLJR ` 100,000 - - 2,000 200.00
Total 41.63 208.11 19. OTHER CURRENT ASSETS
Interest Accrued 497.32 372.83
(` in Million) Insurance Claim Receivable 1.45 10.71
15. INVENTORIES As at As at Other Receivables 296.78 515.08
$VWDNHQYDOXHGDQGFHUWLHGE\WKH 30th June, 31st Dec., Total 795.55 898.62
Management) 2013 2011
Raw Materials including Consumables, 13,527.94 13,583.66
Stores and Spares (` in Million)
Period ended Year ended
Materials in Transit and in Bonded 2,560.53 2,295.62
Warehouse 20. REVENUE FROM OPERATIONS 30th June, 31st Dec.,
2013 2011
:RUNLQ3URFHVV 994.04 830.39
Sale of Products/Services 187,299.44 129,042.71
Finished Goods and Stock in Trade 4,171.24 3,800.08
Income from Other Services 57.79 37.64
Drilling and Production Materials 222.20 236.83
Other Operating Revenue 396.61 114.35
Crude Oil 103.02 60.51
Total 21,578.97 20,807.09 Total 187,753.84 129,194.70
46
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
22. COST OF Period ended Year ended (` in Million)
MATERIALS 30th June, 2013 31st Dec., 2011 Period ended Year ended
CONSUMED Percentage ` in Million Percentage ` in Million 28. OTHER EXPENSES 30th June, 31st Dec.,
2013 2011
Imported 31.16 17,651.61 29.91 12,132.54
Power, Fuel and Water 1,421.14 845.10
Indigenous 68.84 38,992.09 70.09 28,430.42
Freight and Forwarding 2,097.75 1,442.54
Total 100.00 56,643.70 100.00 40,562.96
Rent 295.26 201.35
47
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
30. ADDITIONAL NOTES TO FINANCIAL STATEMENTS 31. As required by Accounting Standard 29 Provisions, Contingent
/LDELOLWLHVDQG&RQWLQJHQW$VVHWVLVVXHGE\7KH,QVWLWXWHRI&KDUWHUHG
30.1 During the period, there is a write back of ` 1.73 Million (Previous Accountants of India, the disclosure with respect to Provision for
year charge of ` 180.82 Million) against the diminution recognised Warranty and Maintenance Expenses is as follows:
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 Period ended Year ended
expenditure pertaining to investment activities have been allocated 30th June, 2013 31st Dec., 2011
to the Investments and Securities Division and the income/(loss) after
a) Amount at the beginning of the period 632.15 638.51
QHWWLQJRIWKHUHODWHGH[SHQGLWXUHKDVEHHQVKRZQDV,QFRPH/RVV
from Investments and Securities Division under Other Income b) Additional provision made during the 653.24 632.15
which includes in respect of the long term investments, dividend of period
` 1.89 Million (Previous year ` 6.63 Million), interest on bonds of
c) Amount used 602.89 602.82
` 6.96 Million (Previous year `0LOOLRQSURWRQVDOHGLVSRVDORI
investments of ` 43.05 Million (Previous year loss of ` 46.29 Million) d) Unused amount reversed during the 29.26 35.69
and in respect of current investments, dividend of ` 0.27 Million period
(Previous year ` Nil).
e) Amount at the end of the period 653.24 632.15
(` in Million)
Period ended Year ended 32. EMPLOYEE BENEFITS:
30.3 C.I.F. Value of Imports, Expenditure and
30th June, 31st Dec., Disclosure pursuant to Accounting Standard (AS) 15 (Revised):
Earnings in Foreign Currency
2013 2011
$ 'HQHG&RQWULEXWLRQ3ODQV
a) C.I.F. Value of Imports:
Raw Materials 23,884.27 14,026.74 Amount of ` 189.05 Million (Previous year ` 121.77 Million) related
to contribution to Provident and Other Funds are recognised as an
Capital Goods (including advances) 213.56 709.66
H[SHQVHDQGVKRZQXQGHUWKHKHDG(PSOR\HH%HQHWV([SHQVH
b) Expenditure incurred in Foreign 5HIHU1RWH1RLQWKH6WDWHPHQWRI3URWDQG/RVV
Currency:
Cash Call paid to the Operator for the 284.15 813.21 (` in Million)
project % 'HQHG%HQHW3ODQV Gratuity Leave Encashment
Interest and Bank Charges 1,429.31 984.13 30th June, 31st Dec., 30th June, 31st Dec.,
Royalty 266.04 47.10 2013 2011 2013 2011
Travelling 43.15 16.33 I) The amounts recognised in the
Others 72.65 148.67 Balance Sheet as at the end of
c) Other Earnings/Receipts in Foreign the period:
Currency: a) 3UHVHQW YDOXH RI 'HQHG 223.73 158.49 54.67 44.29
F.O.B. Value of Exports 6,428.15 3,838.47 %HQHW2EOLJDWLRQ
2WKHUV
3,423.61 2.06 b) Fair value of Plan Assets 55.34 54.74 -
5HLPEXUVHPHQW RI ([SHQVHV RI
c) )XQGHG 6WDWXV 6XUSOXV (168.39) (103.75) (54.67) (44.29)
` 708.84 Million (Previous year `Nil) is
'HFLW
not considered)
d) 1HW$VVHWV/LDELOLW\
Period ended Year ended i) Non Current (145.12) (91.09) (49.26) (39.67)
30.4 Remittance in Foreign Currency on
30th June, 31st Dec.,
account of Dividend ii) Current (23.27) (12.66) (5.41) (4.62)
2013 2011
The Company has paid dividend in respect II) The amounts recognised in the
RI VKDUHV KHOG E\ 1RQ5HVLGHQWV RQ 6WDWHPHQW RI 3URW DQG /RVV
repatriation basis where the amount is also for the period:
FUHGLWHGWR1RQ5HVLGHQW([WHUQDO$FFRXQW a) Current Service Cost 54.75 20.64 20.35 7.34
(NRE A/c). The exact amount of dividend
b) Interest Cost 22.47 10.93 5.21 3.57
remitted in foreign currency can not be
ascertained. The total amount remittable in c) $FWXDULDO*DLQV/RVVHV 13.54 2.15 22.45 7.52
this respect is given below: d) Actual return on Plan 7.52 4.31 -
D 1XPEHURI1RQ5HVLGHQW6KDUHKROGHUV 1,217 1,372 Assets
b) Number of Equity Shares held by them 38,531,878 24,556,038 e) Total Expenses 83.24 29.41 48.01 18.43
c) Gross Amount of Dividend (` in Million) 19.27 24.56 III) The changes in Obligations
d) Year to which dividend relates FY 2011 )< during the period:
(` in Million) a) 3UHVHQW YDOXH RI 'HQHG 158.49 138.50 44.29 47.02
%HQHW 2EOLJDWLRQ DW WKH
Period ended Year ended beginning of the period
30.5 Payment to Auditors 30th June, 31st Dec.,
2013 2011 b) Current Service Cost 54.75 20.64 20.35 7.34
a) Statutory Audit Fees 10.50 7.00 c) Interest Cost 22.47 10.93 5.21 3.57
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) 3UHVHQW YDOXH RI 'HQHG 223.73 158.49 54.67 44.29
Total 22.01 14.20 %HQHW 2EOLJDWLRQ DW WKH
end of the period
48
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
(` in Million) f) Show Cause Notices (SCNs) have been served on the
Operator of the Ravva Oil & Gas Field Joint Venture (Ravva
Gratuity Leave Encashment
JV) for non payment of Service Tax and Educational Cess
30th June, 31st Dec., 30th June, 31st Dec., on various services for the period July, 2003 to 31st March,
2013 2011 2013 2011 2012. The amount involved relating to Ravva Block is `
IV) The changes in Plan Assets 418.88 Million (Previous year ` 412.56 Million).
during the period: The Operator is contesting the SCNs/demands before
a) Plan Assets at the 54.74 50.05 - &RPPLVVLRQHURI6HUYLFH7D[DQGKDVOHGDSSHDOEHIRUH
beginning of the period CESTAT, Bangalore and also writ petition before Hon'ble
High Court of Madras challenging service tax demands on
b) Contribution by Employer 8.36 8.57 -
some of the services and believes that its position is likely
c) $FWXDO%HQHWVSDLG 15.28 8.19 - to be upheld. The ultimate outcome of the matter cannot be
d) Plan Assets at the end of 55.34 54.74 - presently determined and no provision for any liability that
the period may result has been made in the accounts as the same is
subject to agreement by the members of the Joint Venture.
e) Actual return on Plan 7.52 4.31 -
Should it ultimately become payable, the Companys share
Assets
as per the participating interest would be upto ` 104.72
Million (Previous year ` 103.14 Million).
V) Actuarial Assumptions
g) Disputed Income Tax demand amounting to ` 22.29
a) Discount Rate 8% per annum Million (Previous year ` 22.29 Million) in respect of certain
b) Mortality /,&8OWLPDWH payments made by Ravva Oil & Gas Field Joint Venture is
currently pending before the Hon'ble High Court of Madras.
c) Turnover Rate 5% at younger ages reducing to
The ultimate outcome of the matter cannot presently be
1% at older ages
determined and no provision for any liability that may result
d) Future Salary Increase 5% per annum has been made as the same is subject to agreement by the
(` in Million) members of the Joint Venture. Should it ultimately become
payable, the Company's share as per the participating
33. CONTINGENT LIABILITIES AND As at As at interest would be upto ` 5.57 Million (Previous year ` 5.57
COMMITMENTS 30th June, 31st Dec., Million).
2013 2011
34. There were certain disputes with the Government of India (GOI) with
A) Commitments respect to the Production Sharing Contract dated 28th October, 1994
(Ravva PSC) pertaining to Ravva Oil & Gas Field which were referred
Estimated amount of contract 508.19 628.54
to international arbitration for resolution. The Arbitral Tribunal has issued
remaining to be executed on capital D 3DUWLDO$ZDUG DQG LV VWLOO VHL]HG RI WKH PDWWHU DQG LV \HW WR LVVXH D
account and not provided for (net of Final Award, other than for the dispute relating to Base Development
advances) &RVWV%'&IRUZKLFKDQDODZDUGZDVLVVXHGRQWK-DQXDU\
B) Contingent Liabilities not substantially in favour of the Company. Issue relating to deductibility
provided for: of ONGC Carry Costs arising out of the Partial Award was appealed
by the GOI before the Malaysian Appellate Authorities which has since
i) /HWWHUVRI*XDUDQWHHV 39,317.01 76,432.95 EHHQUHMHFWHGRQJURXQGVLQWHUDOLDRIMXULVGLFWLRQDQGPDLQWDLQDELOLW\
E\ VXFK DXWKRULWLHV DQG LV QRZ EHIRUH WKH QDO DSSHOODWH DXWKRULW\ LH
ii) /HWWHUVRI&UHGLWRSHQHG 61,216.92 29,921.44
the Federal Court of Malaysia. Issue relating to deductibility of the BDC
LQFOXGLQJ6WDQGE\/HWWHUVRI
was appealed by the GOI before the Malaysian Appellate Authority
&UHGLWDQG/HWWHURI&RPIRUW
which has since been rejected by such authority and is now before the
iii) Claims against the Company &RXUW RI$SSHDO DW 0DOD\VLD 3HQGLQJ QDO UHVROXWLRQ RI WKH GLVSXWHV
not acknowledged as debts certain amounts have been short paid by GOI Nominees which have
been disputed by the Company and the Company is seeking refund of
a) Custom Duty demands and 502.46 447.02 amounts excessively deducted. Based on legal advice, the Company
penalties under dispute believes its contentions will be upheld. Any further sum required to be
[Amount paid under protest paid or returnable in respect of such disputes in accordance with the
` 3.41 Million (Previous year determination of the amount by the Honble Arbitral Tribunal/relevant
` 0.07 Million)] FRXUWVLQWKLVUHJDUGVKDOOEHDFFRXQWHGIRURQWKHQDORXWFRPHLQWKRVH
matters.
b) Income Tax demands under 3,149.41 494.74 35. 7KH &RPSDQ\ DORQJZLWK RWKHU DIOLDWHVHQWLWLHV FROOHFWLYHO\
dispute UHIHUUHGWRDV2EOLJRUVRULQGLYLGXDOO\DV%RUURZHUH[HFXWHG)DFLOLW\
c) Excise Duty and Service 1,034.95 610.88 Agreement with the consortium of existing domestic rupee term lenders,
Tax demands and penalties XQGHUWKHREOLJRUFRREOLJRUVWUXFWXUHZKHUHLQDOOWKH5XSHH7HUP/RDQV
under dispute [Amount of the Obligors are pooled together. The Borrower entities are Videocon
paid under protest ` 30.86 ,QGXVWULHV/LPLWHG9DOXH,QGXVWULHV/LPLWHG7UHQG(OHFWURQLFV/LPLWHG
Million (Previous year ` 4.21 .$,/ /LPLWHG 0LOOHQQLXP $SSOLDQFHV ,QGLD /LPLWHG $SSOLFRPS ,QGLD
Million)] /LPLWHG 6N\$SSOLDQFHV /LPLWHG 7HFKQR (OHFWURQLFV /LPLWHG &HQWXU\
$SSOLDQFHV/LPLWHG3((OHFWURQLFV/LPLWHG1H[W5HWDLO,QGLD/LPLWHG
d) Sales Tax demands under 1,131.51 919.84 (YDQV )UDVHU DQG &R ,QGLD /LPLWHG DQG 9LGHRFRQ ,QWHUQDWLRQDO
dispute (OHFWURQLFV /LPLWHG$V SHU WKH VDLG )DFLOLW\$JUHHPHQW WKH &RPSDQ\
LV DJHQW RI WKH 2EOLJRUV DQG KDV EHHQ UHIHUUHG WR DV 2EOLJRU$JHQW
[Amount paid under protest 7KH5XSHH7HUP/RDQVKDYHWREHXWLOLVHGIRUWKHSXUSRVHPHQWLRQHGLQ
` 377.09 Million (Previous WKH)DFLOLW\$JUHHPHQWZKLFKLVPDLQO\IRUUHQDQFLQJRIH[LVWLQJ5XSHH
year ` 360.08 Million)] 7HUP /RDQV RI WKH 2EOLJRUV $FFRUGLQJO\ WKH 5XSHH 7HUP /RDQV RI
e) Others [Amount paid under 2,153.30 1,062.64 ` 20,439.54 Million have been allocated to respective Obligors based on
protest ` 50.00 Million their outstanding amount as on 31st December 2011. As the Company is
(Previous year ` 50.00 DFRREOLJRULWLVFRQWLQJHQWO\OLDEOHLQUHVSHFWRIWKHERUURZLQJVRIRWKHU
Million)] Obligors/Borrowers to the extent of outstanding balance of Rupee Term
/RDQVDVRQWK-XQHRI` 20,307.40 Million (Previous year ` Nil).
49
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
36. 7KH&RQVRUWLXPRIYDULRXVEDQNVKDYHVDQFWLRQHGWKH/HWWHURI&RPIRUW 28th August, 2006. The Joint Venture (JV) comprised of the
/R&6WDQGE\ /HWWHUV RI &UHGLW 6%/& IDFLOLW\ WR WKH &RPSDQ\ DQG &RPSDQ\2LOH[/LPLWHG*XMDUDW6WDWH3HWUROHXP&RUSRUDWLRQ
LWV VXEVLGLDU\ 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG 929/ FROOHFWLYHO\ /LPLWHG +LQGXVWDQ 3HWUROHXP &RUSRUDWLRQ /LPLWHG %KDUDW
UHIHUUHG WR DV 2EOLJRUV WR VHFXUH WKH IRUHLJQ FXUUHQF\ IDFLOLW\ UDLVHG 3HWUROHXP &RUSRUDWLRQ /LPLWHG 6DVRO 3HWUROHXP $XVWUDOLD
WR EH UDLVHG E\ 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG 9++/ DQ /LPLWHGDQG$SDFKH1RUWKZHVW3W\/LPLWHG$SDFKH$SDFKH
RYHUVHDVVXEVLGLDU\IURPLWVOHQGHUV7KH/R&6%/&IDFLOLW\LVVHFXUHG was the Operator with 40% interest in JV. The Petroleum
E\UVWUDQNLQJSOHGJHRIVKDUHVRI929/9++/DQGVKDUHVRI ([SORUDWLRQ 3HUPLW :$3 H[SLUHG RQ WK $XJXVW
FHUWDLQ VXEVLGLDULHV RI 9++/ FKDUJH RYHU WKHLU [HG DVVHWV 9++/V and ceased to be inforce.
VKDUHRIFDVKRZVIURPLGHQWLHGRLO JDVDVVHWVWKURXJKHVFURZRI B) Incorporated Jointly Controlled Entities:
UHFHLYDEOHVUVWUDQNLQJH[FOXVLYHFKDUJHRQVSHFLHGEDQNDFFRXQWV
IRU WKH EHQHW RI WKH UHOHYDQW /R&6%/& SURYLGHU H[FOXVLYH FKDUJH L 9LGHRFRQ ,QQLW\ ,QIUDVWUXFWXUHV 3ULYDWH /LPLWHG LV D
RQ RLO JDV IDFLOLW\ VHUYLFLQJ DFFRXQW RI 2EOLJRUV VHWXS XQGHU WKH -RLQW 9HQWXUH &RPSDQ\ LQFRUSRUDWHG LQ ,QGLD ZLWK ,QQLW\
onshore Trust and Retention Accounts, negative lien for shares of other ,QIRWHFK3DUNV/LPLWHGWRFDUU\RQWKHEXVLQHVVRILQIUDVWUXFWXUH
VXEVLGLDULHVRI9++/YL]9LGHRFRQ-3'$/LPLWHGDQG9LGHRFRQ development like construction of IT/ITes Parks, Biotech Parks
$XVWUDOLD:$3/LPLWHGUVWSDULSDVVXFKDUJHRQ9LGHRFRQEUDQG etc. The Joint Venture Company has not commenced its
and personal guarantees of Mr. Venugopal N. Dhoot, Mr. Pradipkumar commercial operations.
N. Dhoot and Mr. Rajkumar N. Dhoot. However, charge has not been LL 7KH QDQFLDO LQWHUHVW RI WKH &RPSDQ\ LQ WKH MRLQWO\ FRQWUROOHG
created in favor of Consortium of banks (A) for the credit facility to the LQFRUSRUDWHGHQWLW\EDVHGRQQDQFLDOVWDWHPHQWUHFHLYHGLVDV
OEOLJRUVRQWKHDVVHWVE\ZD\RISOHGJHRIVKDUHVRIWKHVXEVLGLDULHVYL] under:
9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHGDQG9LGHRFRQ0R]DPELTXH5RYXPD (` in Million)
/LPLWHGZKLFKKDYHEHHQSOHGJHGWR6WDQGDUG&KDUWHUHG%DQNIRUWKH
Company's share in 30th June, 2013 31st Dec., 2011
ORDQV DYDLOHG E\ 9++/ % IRU DQ\ RWKHU UHFHLYDEOHV IURP 9LGHRFRQ
0R]DPELTXH 5RYXPD /LPLWHG DQG & RQ DQ\ DVVHWV RI 9LGHRFRQ Assets 6.30 4.20
0R]DPELTXH5RYXPD/LPLWHG /LDELOLWLHV 6.25 4.15
$FFRUGLQJO\WKH &RPSDQ\ LVFRQWLQJHQWO\ OLDEOH LQUHVSHFWRI WKH/R& Income -
6%/&IDFLOLW\RI929/WRWKHH[WHQWRI` 69,933.48 Million (Previous year Expenses -
` Nil).
Tax -
37. The Company has, directly and through its subsidiaries, made C) The estimated amount of commitment of the Company towards
investments aggregating to ` 49,337.50 Million and also given advances contribution in various Joint Ventures for next year based on
of `0LOOLRQWR9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG97/WKH minimum work program is ` 3,656.49 Million (Previous year
VXEVLGLDU\ 97/ ZDV JUDQWHG WKH OLFHQVH IRU SURYLGLQJ 8QLHG $FFHVV ` 239.96 Million).
Services (UAS) in 21 circles by the Department of Telecommunications,
Government of India (DoT) in 2008 and was also allotted spectrum 39. The outstanding balances of certain Trade Receivables, Trade Payables,
in 20 circles. The Honble Supreme Court of India, vide its judgment 'HSRVLWV$GYDQFHVDQG2WKHU&XUUHQW$VVHWV/LDELOLWLHVDUHVXEMHFWWR
dated 2nd February, 2012, quashed all the UAS licenses granted on or FRQUPDWLRQ DQG UHFRQFLOLDWLRQ LI DQ\ +RZHYHU LQ WKH RSLQLRQ RI WKH
after 10th January, 2008 and the subsequent allocation of spectrum to management, adjustment, if any, will not be material.
WKHVHOLFHQVHHVZKLFKDOVRLQFOXGHWKH8$6OLFHQVHVJUDQWHGWR97/ 40. In the opinion of the Board, the value on realisation of Current Assets,
and the spectrum allotted to it. The Honble Supreme Court of India, /RDQVDQG$GYDQFHVLQWKHRUGLQDU\FRXUVHRIWKHEXVLQHVVZRXOGQRWEH
also directed the Telecom Regulatory Authority of India (TRAI) to make less than the amount at which they are stated in the Balance Sheet and
fresh recommendations for grant of licenses and allocation of spectrum the provision for all known and determined liabilities is adequate and not
and the Central Government to grant fresh licenses and allocation of in excess of the amount reasonably required.
spectrum by auction thereafter. 41. There are no amounts due and outstanding, to be credited to the
The Central Government conducted the auction of spectrum in Investor Education and Protection Fund.
1RYHPEHU97/SDUWLFLSDWHGLQWKHDXFWLRQDQGKDVEHHQGHFODUHG 42. Related Party Disclosures:
as a successful bidder in 6 circles and has been awarded spectrum
As required under Accounting Standard 18 on Related Party
LQ WKHVH FLUFOHV 97/ LV FRQWLQXLQJ LWV EXVLQHVV DV D JRLQJ FRQFHUQ
'LVFORVXUHVWKHGLVFORVXUHRIWUDQVDFWLRQZLWKUHODWHGSDUWLHVDVGHQHG
$V 97/ KDV KXJH DFFXPXODWHG ORVVHV LWV DELOLW\ WR FRQWLQXH DV JRLQJ in the Accounting Standard are given below:
concern is dependent on its ability to fund its operating requirements.
97/ LV FRQGHQW RI PRELOL]LQJ QHFHVVDU\ UHVRXUFHV IRU FRQWLQXLQJ LWV A) List of Related Parties where control exists and related parties
operations as per the business plan. Accordingly, in the opinion of the ZLWKZKRPWUDQVDFWLRQVKDYHWDNHQSODFHDQGUHODWLRQVKLS
management, no provision is required for diminution in the value of i) Subsidiaries:
DIRUHVDLGLQYHVWPHQWVDQGDGYDQFHVWR97/ D &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG
38. A) Unincorporated Joint Ventures: E (DJOH(&RUS/LPLWHGXSWRWK-XQH
7KH)LQDQFLDO6WDWHPHQWVUHHFWWKHVKDUHRIWKH&RPSDQ\LQWKH F /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG
assets and the liabilities as well as the income and the expenditure G 0LGGOH(DVW$SSOLDQFHV//&
RI-RLQW9HQWXUH2SHUDWLRQVRQDOLQHE\OLQHEDVLV7KH&RPSDQ\ H 3LSDYDY(QHUJ\3ULYDWH/LPLWHG
incorporates its share in the operations of the Joint Venture
based on statements of account received from the Operator. The I 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG
&RPSDQ\KDVLQWHUPVRI6LJQLFDQW$FFRXQWLQJ3ROLF\1R( J 9LGHRFRQ (OHFWURQLFV 6KHQ]KHQ /LPLWHG &KLQHVH
recognised abandonment costs based on the technical assessment 1DPH:HL\RXNDQJ(OHFWURQLF6KHQ]KHQ&R/WG
of current costs as cost of producing properties and has provided K 9LGHRFRQ*OREDO/LPLWHG
GHSOHWLRQ WKHUHRQ XQGHU 8QLW RI 3URGXFWLRQ PHWKRG DV SDUW RI L 9LGHRFRQ2LO9HQWXUHV/LPLWHGDQGLWVVXEVLGLDULHV
Producing Properties in line with Guidance Note on Accounting of - 9LGHRFRQ(VWHOOH/LPLWHG
Oil and Gas Producing Activities issued by the Institute of Chartered
Accountants of India. - 9LGHRFRQ,YRU\/LPLWHG
- 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG DQG LWV
i) The Company has participating interest of 25% in Ravva Oil subsidiaries
and Gas Field Joint Venture (JV) through a Production Sharing
Contract (PSC). Other members of the JV are Oil and Natural - 9LGHRFRQ-3'$/LPLWHG
*DV &RUSRUDWLRQ /LPLWHG &DLUQ ,QGLD /LPLWHG IRUPHUO\ &DLUQ - Videocon Indonesia Nunukan Inc.
(QHUJ\ ,QGLD 3W\ /LPLWHG DQG 5DYYD 2LO 6LQJDSRUH 3WH - 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG
/LPLWHG 7KH SDUWLHV KDYH SXUVXDQW WR WKH 36& HQWHUHG LQWR - 9LGHRFRQ$XVWUDOLD:$3/LPLWHG
D -RLQW 2SHUDWLQJ$JUHHPHQW &DLUQ ,QGLD /LPLWHG LV QRZ WKH - 2LO 6HUYLFHV ,QWHUQDWLRQDO 6$6 /LTXLGDWHG RQ
2SHUDWRU&DLUQ(QHUJ\,QGLD3W\/LPLWHGZDVWKH2SHUDWRUXSWR 10th July, 2012)
15th October, 2012).
- 9LGHRFRQ 0DXULWLXV (QHUJ\ /LPLWHG ZHI WK
ii) The Company had participating interest of 8.4% in Block December, 2012) and its subsidiary
:$3 LQ H[SORUDWLRQ SHUPLW IRU D WHUP RI \HDUV IURP
- 9LGHRFRQ0R]DPELTXH5RYXPD/LPLWHG
50
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
M (PHUDOG&RUSRUDWH9HQWXUHV/LPLWHGIRUPHUO\9LGHRFRQ (` in Million)
(QHUJ\ 9HQWXUHV /WG XSWR WK -XQH DQG LWV
subsidiary Subsidiary $VVRFLDWHV Key
Particulars Companies Joint Management
- 0HUFXU\ &RUSRUDWH 9HQWXUHV /LPLWHG IRUPHUO\ Venture Personnel
9LGHRFRQ2PDQ/LPLWHGXSWRWK-XQH
Reimbursement of 6,494.69 9.63
N 9LGHRFRQ ,QWHUQDWLRQDO (OHFWURQLFV /LPLWHG DQG LWV Expenses (2,560.92) (90.42)
subsidiaries
Non Current Investments 6,058.92
- -XPER7HFKQR6HUYLFHV3ULYDWH/LPLWHG (net) (1,095.23)
- 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG /RQJ7HUP$GYDQFHV 28,816.14
- 9LGHRFRQ 7HOHFRPPXQLFDWLRQV /LPLWHG DQG LWV /RDQVJLYHQ (18,610.91)
subsidiary Short Term Advances/ 3,050.07 0.04
- 'DWDFRP7HOHFRPPXQLFDWLRQV3ULYDWH/LPLWHG /RDQVJLYHQ (6,158.31) (8.40)
O 9LGHRFRQ(QHUJ\/LPLWHGDQGLWVVXEVLGLDU\ /RQJ7HUP$GYDQFHV 16,415.97
/RDQVUHFHLYHGEDFN
- 3URFLHQW(QHUJ\3ULYDWH/LPLWHGDQGLWVVXEVLGLDU\
Short Term Advances/ 11,424.00 368.07
- $SSOLHG(QHUJ\3ULYDWH/LPLWHGDQGLWVVXEVLGLDULHV /RDQVUHFHLYHGEDFN (2,563.50)
- 8QLW\3RZHU3ULYDWH/LPLWHG Short Term Advances/ 5.13
- &RPHW3RZHU3ULYDWH/LPLWHGDQGLWVVXEVLGLDULHV /RDQVUHFHLYHG (81.69)
- ,QGLJR (QHUJ\ 3ULYDWH /LPLWHG ZHI WK Repayment of Short Term 76.95
January, 2012) $GYDQFHV/RDQVUHFHLYHG
- 3HUFHSW (QHUJ\ 3ULYDWH /LPLWHG ZHI WK Remuneration 81.01
January, 2012) (43.07)
9LGHRFRQ 0R]DPELTXH 5RYXPD /LPLWHG ZDV D ZKROO\ RZQHG Outstanding as at
VXEVLGLDU\ RI 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG XSWR WK 30th June, 2013
December, 2012. It became a wholly owned subsidiary of Videocon Trade Receivables -
0DXULWLXV(QHUJ\/LPLWHGZHIWK'HFHPEHU (68.34)
ii) Associates and Joint Ventures: Trade Payables -
(20.53)
*RD (QHUJ\ 3ULYDWH /LPLWHG $VVRFLDWH XSWR VW
March, 2012) /RQJ7HUP$GYDQFHV 47,512.23
/RDQVJLYHQ (35,112.06)
1RUWKZHVW (QHUJ\ 3ULYDWH /LPLWHG $VVRFLDWH RI
3URFLHQW (QHUJ\ 3ULYDWH /LPLWHG XSWR WK Short Term Advances/ 5,915.77 3.30
January, 2013) /RDQVJLYHQ (14,289.70) (371.33)
iii) Key Management Personnel: C) Material transactions with Related Parties during the period are:
0U9HQXJRSDO1'KRRW&KDLUPDQ 0DQDJLQJ'LUHFWRU i) Revenue from Operations from Videocon Telecommunications
/LPLWHG` 51.21 Million (Previous year ` 335.80 Million on high
0U 3UDGLSNXPDU 1 'KRRW :KROH 7LPH 'LUHFWRU XSWR
seas basis).
14th August, 2012)
0U6XQLO.XPDU-DLQ6HQLRU9LFH3UHVLGHQW ii) Other Income received from Videocon Hydrocarbon Holdings
/LPLWHG` 2,225.27 Million (Previous year ` Nil).
0U6KHNKDU-\RWL9LFH3UHVLGHQW
0U&KDQGUDPDQL06LQJK9LFH3UHVLGHQW iii) Reimbursement of Expenses from Videocon International
(OHFWURQLFV /LPLWHG ` 4,456.13 Million (Previous year ` Nil),
0U-DLGHHS55DWKRUH6HQLRU9LFH3UHVLGHQWXSWRVW
9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG ` 695.24 Million
March, 2013)
(Previous year ` 1LO DQG 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG
0U$EKLMLW.RWQLV9LFH3UHVLGHQW ` 741.11 Million (Previous year ` Nil).
0U$UXQ3DO9LFH3UHVLGHQW
iv) Subscription to Shares of Videocon International Electronics
% 7UDQVDFWLRQVRXWVWDQGLQJEDODQFHVZLWK5HODWHG3DUWLHV /LPLWHG ` 10,000.00 Million (Previous year ` Nil), Videocon
The Company has entered into transactions with certain related 7HOHFRPPXQLFDWLRQV /LPLWHG QHW RI 6KDUH $SSOLFDWLRQ 0RQH\
parties during the period as listed below. The Board considers such ` 3,264.55 Million (Previous year ` 1LO DQG /LEHUW\ 9LGHRFRQ
transactions to be in normal course of business: *HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG ` 2,749.90 (Previous
year ` 49.10 Million). Refund of Share Application Money from
(` in Million) 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG ` 9,000.00 Million (Previous
Subsidiary $VVRFLDWHV Key year ` 1LO DQG &KKDWWLVJDUK 3RZHU 9HQWXUHV 3ULYDWH /LPLWHG
Particulars Companies Joint Management ` 1,000.00 Million (Previous year ` Nil).
Venture Personnel Y /RQJ 7HUP $GYDQFHV/RDQV *LYHQ WR 9LGHRFRQ ,QWHUQDWLRQDO
Nature of Transactions (OHFWURQLFV/LPLWHG` 19,103.13 Million (Previous year 2,444.64
Revenue from Operations 51.21 0LOOLRQ DQG 9LGHRFRQ 2LO 9HQWXUHV /LPLWHG ` 9,713.01 Million
(424.75) (Previous year ` 5,296.22 Million).
Other Income 2,278.25 YL 6KRUW 7HUP$GYDQFHV/RDQV *LYHQ WR 9LGHRFRQ +\GURFDUERQ
+ROGLQJV /LPLWHG ` 2,380.65 Million (Previous year ` Nil) and
Purchase of Goods/ - &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG` 536.92 Million
Services (89.75) (Previous year ` Nil).
51
ANNUAL REPORT 2013
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (Continued)
YLL /RQJ 7HUP $GYDQFHV/RDQ 5HFHLYHG EDFN IURP 9LGHRFRQ (` in Million)
7HOHFRPPXQLFDWLRQV/LPLWHG` 16,415.97 Million (Previous year
` Nil). As at As at
Name of the Company 30th June, 31st Dec.,
YLLL 6KRUW 7HUP $GYDQFHV/RDQ 5HFHLYHG EDFN IURP 9LGHRFRQ 2013 2011
*OREDO /LPLWHG ` 9,993.30 Million (Previous years ` Nil) and 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG Subsidiary 4.08
9LGHRFRQ(QHUJ\9HQWXUHV/LPLWHG` 1,340.50 Million (Previous 9LGHRFRQ(QHUJ\/LPLWHG Subsidiary 0.01
year ` Nil). Emerald Corporate Ventures Subsidiary - 1,340.50
L[ 6KRUW 7HUP$GYDQFHV/RDQV 5HFHLYHG IURP /LEHUW\ 9LGHRFRQ /LPLWHGXSWRWK-XQH
*HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG ` 3.49 Million (Previous (formerly Videocon Energy
year `1LODQG9LGHRFRQ*OREDO/LPLWHG` 1.64 Million (Previous 9HQWXUHV/LPLWHG
year ` Nil). 9LGHRFRQ*OREDO/LPLWHG Subsidiary - 9,993.31
[ 5HSD\PHQW RI 6KRUW 7HUP $GYDQFHV/RDQV 5HFHLYHG IURP Videocon Hydrocarbon Holdings Subsidiary 2,380.65
3URFLHQW(QHUJ\3ULYDWH/LPLWHG` 62.96 Million (Previous year /LPLWHG
` 1LO DQG 9LGHRFRQ (OHFWURQLFV 6KHQ]HQ /LPLWHG ` 13.99 Videocon Indonesia Nunukan Subsidiary 1.17
Million (Previous year ` Nil). /LPLWHG
9LGHRFRQ0R]DPELTXH5RYXPD Subsidiary 6.09
43. Loans and Advances in the nature of Loans given to Subsidiaries
/LPLWHG
and Associates, etc.
*RD(QHUJ\3ULYDWH/LPLWHG Associate - 368.07
a) Loans and Advances in the nature of Loans: 5DGLXP(QHUJ\3ULYDWH/LPLWHG Associate 0.55 0.51
i) Long Term Loans and Advances: 9LGHRFRQ,QQLW\,QIUDVWUXFWXUH Joint 2.75 2.75
3ULYDWH/LPLWHG Venture
(` in Million)
/RDQV DQG$GYDQFHV VKRZQ DERYH WR VXEVLGLDULHV IDOO XQGHU WKH
As at As at FDWHJRU\RI/RDQVDQG$GYDQFHVLQQDWXUHRI/RDQVZKHUHWKHUHLV
Name of the Company 30th June, 31st Dec., no repayment schedule and are repayable on demand.
2013 2011
b) Investment by the loanee in the shares of the Company:
Videocon International Subsidiary 31,719.83 12,616.70
None of the loanees have made investments in the shares of the
(OHFWURQLFV/LPLWHG
Company.
9LGHRFRQ2LO9HQWXUHV/LPLWHG Subsidiary 15,009.66 5,296.65
44. Share of the Company in remaining reserves on proved and
Videocon Telecommunications Subsidiary 782.74 17,198.71 SUREDEOHEDVLVDVSHU2SHUDWRUVHVWLPDWHVLQ5DYYD2LO *DVHOG
/LPLWHG (Unincorporated) Joint Venture, relied upon by the auditors, being
ii) Short Term Loans and Advances: technical evaluation/matter.
(` in Million) As at As at
Particulars Unit of measurement
30th June, 2013 31st Dec., 2011
As at As at
Name of the Company 30th June, 31st Dec., Crude Oil Million Metric Tonnes 0.85 1.53
2013 2011
$SSOLHG(QHUJ\3ULYDWH/LPLWHG Subsidiary 114.17 7.93 Natural Gas Million Cubic Metres 187.84 240.29
Chhattisgarh Power Ventures Subsidiary 1,509.53 972.61 45. a) The Financial Institutions have a right to convert, at their option, the
3ULYDWH/LPLWHG whole outstanding amount of term loans or a part not exceeding 20%
&RPHW3RZHU3ULYDWH/LPLWHG Subsidiary 0.41 0.31 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
Datacom Telecommunications Subsidiary 0.01 0.0004
three consecutive installments of principal and/or interest thereon or on
3ULYDWH/LPLWHG mismanagement of the affairs of the Company.
,QGLJR(QHUJ\3ULYDWH/LPLWHG Subsidiary 0.01
b) The Financial Institutions have a right to convert at their option, the
Jumbo Techno Services Private Subsidiary - 0.01 whole or a part of outstanding amount of Preference Shares, into
/LPLWHG fully paid up Equity Shares of the Company as per SEBI guidelines,
/LEHUW\9LGHRFRQ*HQHUDO Subsidiary - 14.61 on default in payment of dividend or a default in redemption of
,QVXUDQFH&RPSDQ\/LPLWHG Preference Shares or any combination thereof.
3HUFHSW(QHUJ\3ULYDWH/LPLWHG Subsidiary 1.03 46. The Company has prepared the Consolidated Financial Statements
3LSDYDY(QHUJ\3ULYDWH/LPLWHG Subsidiary 1,475.42 1,550.99 as per Accounting Standard (AS) 21 and accordingly the segment
Prosperous Energy Private Subsidiary 417.37 409.42 LQIRUPDWLRQDVSHU$66HJPHQW5HSRUWLQJKDVEHHQSUHVHQWHGLQ
the Consolidated Financial Statements.
/LPLWHG
Senior Consulting Private Subsidiary - 0.01 47. 7KHVHQDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQWKHIRUPDWSUHVFULEHG
E\WKH5HYLVHG6FKHGXOH9,WRWKH&RPSDQLHV$FW7KHJXUHVIRU
/LPLWHG the current period are for a period of 18 months as against 12 months in
8QLW\3RZHU3ULYDWH/LPLWHG Subsidiary - 0.002 SUHYLRXV\HDUDQGKHQFHDUHQRWFRPSDUDEOH3UHYLRXV\HDUJXUHVKDYH
Videocon Electronics Subsidiary 5.82 EHHQUHFODVVLHGUHVWDWHGUHFDVWHGWRFRQIRUPWRWKHFODVVLFDWLRQRI
6KHQ]KHQ/LPLWHG the current period.
As per our report of even date For and on behalf of the Board
For KHANDELWAL JAIN & CO. For KADAM & CO. V. N. DHOOT
&KDUWHUHG$FFRXQWDQWV &KDUWHUHG$FFRXQWDQWV &KDLUPDQDQG0DQDJLQJ'LUHFWRU
Place : Mumbai
Date : 29th November, 2013
52
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
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:HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWK$XGLWLQJ6WDQGDUGVJHQHUDOO\DFFHSWHGLQ,QGLD7KHVH6WDQGDUGVUHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLW
WRREWDLQUHDVRQDEOHDVVXUDQFHZKHWKHUWKHQDQFLDOVWDWHPHQWVDUHSUHSDUHGLQDOOPDWHULDOUHVSHFWVLQDFFRUGDQFHZLWKDQLGHQWLHGQDQFLDOUHSRUWLQJ
IUDPHZRUNDQGDUHIUHHRIPDWHULDOPLVVWDWHPHQW$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVWEDVLVHYLGHQFHVXSSRUWLQJWKHDPRXQWVDQGGLVFORVXUHVLQ
WKHQDQFLDOVWDWHPHQWV$QDXGLWDOVRLQFOXGHVDVVHVVLQJWKHDFFRXQWLQJSULQFLSOHVXVHGDQGVLJQLFDQWHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODV
HYDOXDWLQJWKHRYHUDOO&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVSUHVHQWDWLRQ:HEHOLHYHWKDWRXUDXGLWSURYLGHVDUHDVRQDEOHEDVLVIRURXURSLQLRQ
D :HGLGQRWMRLQWO\DXGLWWKHQDQFLDOVWDWHPHQWVRIFHUWDLQ6XEVLGLDULHVZKRVHQDQFLDOVWDWHPHQWVUHHFWWRWDODVVHWVQHWRI` 155,061.25 Million
as at 30th June 2013/ 31st March 2013, total revenues (net) of `0LOOLRQDQGQHWFDVKRZVDPRXQWLQJWR` (2,900.01) Million for the
SHULRGHQGHGRQWKDWGDWH7KHVHQDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\RQHRIXV
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` 4,670.19 Million as at 30th June 2013/ 31st March 2013, total revenues (net) of `0LOOLRQDQGQHWFDVKRZVDPRXQWLQJWR` 506.37 Million
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)LQDQFLDO6WDWHPHQWVDQG$FFRXQWLQJ6WDQGDUG$6)LQDQFLDO5HSRUWLQJRI,QWHUHVWLQ-RLQW9HQWXUHVLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWV
RI,QGLDDQGRQWKHEDVLVRIWKHVHSDUDWHDXGLWHGQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVLQFOXGHGLQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV
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7KH+RQEOH6XSUHPH&RXUWRI,QGLDYLGHLWVRUGHUDQGMXGJPHQWGDWHGQG)HEUXDU\-XGJPHQWLQWZRVHSDUDWHZULWSHWLWLRQVTXDVKHG
WKH8$6OLFHQVHVJUDQWHGRQRUDIWHUth-DQXDU\SXUVXDQWWRWZRSUHVVUHOHDVHVLVVXHGRQth-DQXDU\DQGWKHVXEVHTXHQWDOORFDWLRQ
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'XULQJWKHSHULRG97/KDVLQFXUUHGDQHWORVVRI`0LOOLRQUHVXOWLQJLQWRDFFXPXODWHGORVVHVRI` 40,344.93 Million as at 30th June, 2013.
97/KDVIXUWKHULVVXHGDQGDOORWWHGVKDUHFDSLWDOZKHUHE\WKHQHWZRUWKKDVEHFRPHSRVLWLYHDVRQWK-XQH7KHDELOLW\RI97/WRFRQWLQXH
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FRQGHQWRIPRELOL]LQJWKHQHFHVVDU\UHVRXUFHVIRUFRQWLQXLQJLWVRSHUDWLRQVDVSHUWKHEXVLQHVVSODQ$FFRUGLQJO\WKHQDQFLDOVWDWHPHQWVKDYH
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E 1RWH1R%DWRWKH)LQDQFLDO6WDWHPHQWVUHJDUGLQJLQFRUSRUDWLRQRIWKH&RPSDQ\VVKDUHLQWKHRSHUDWLRQVRIWKHMRLQWYHQWXUHVEDVHGRQ
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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
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a. 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;
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ventures for the period ended on that date; and
F LQWKHFDVHRIWKH&RQVROLGDWHG&DVK)ORZ6WDWHPHQWRIWKHFRQVROLGDWHGFDVKRZVRIWKH&RPSDQ\DQGLWVVXEVLGLDULHVDVVRFLDWHVDQGMRLQW
ventures for the period ended on that date.
)RUKHANDELWAL JAIN & CO. )RUKADAM & CO.
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53
ANNUAL REPORT 2013
CONSOLIDATED BALANCE SHEET AS AT 30TH JUNE, 2013
(` in Million)
As at $VDW
Particulars Note No.
30th June, 2013 31st Dec., 2011
I. EQUITY AND LIABILITIES
1) Shareholders' Funds
a) Share Capital 3 3,340.94 3,339.36
b) 5HVHUYHVDQG6XUSOXV 4 43,796.04 69,450.43
47,136.98
2) Share Application Money Pending Allotment -
3) Minority Interest 2,079.81 104.10
4) Non-Current Liabilities
a) /RQJ7HUP%RUURZLQJV 5 310,786.55 143,960.69
b) Deferred Tax Liability (Net) 13 - 7,351.19
c) /RQJ7HUP3URYLVLRQV 6 1,499.40 1,299.74
312,285.95 152,611.62
5) Current Liabilities
a) 6KRUW7HUP%RUURZLQJV 7 58,083.65 79,567.71
b) Trade Payables 15,775.64 14,151.46
c) 2WKHU&XUUHQW/LDELOLWLHV 9 58,361.04 67,136.75
d) Short Term Provisions 10 966.43 907.00
133,186.76 161,762.92
TOTAL 494,689.50 392,717.17
II. ASSETS
1) Non-Current Assets
a) )L[HG$VVHWV 11
L 7DQJLEOH$VVHWV 75,715.31
LL ,QWDQJLEOH$VVHWV 23,226.54
LLL &DSLWDOZRUNLQSURJUHVV 95,252.89 55,223.46
b) 3UH2SHUDWLYH([SHQGLWXUH3HQGLQJ$OORFDWLRQ 12 1,606.12 2,165.20
c) *RRGZLOORQ&RQVROLGDWLRQ 11,079.53 77.91
d) 'HIHUUHG7D[$VVHWV1HW 13 17,925.34 -
e) Non-Current Investments 14 7,548.97
f) /RQJ7HUP/RDQVDQG$GYDQFHV 15 43,530.03
275,884.73
2) Current Assets
a) Current Investments 16 632.49
b) Inventories 17 21,656.82
c) 7UDGH5HFHLYDEOHV 29,433.94
d) &DVKDQG%DQN%DODQFHV 19 9,004.12 12,255.92
e) 6KRUW7HUP/RDQVDQG$GYDQFHV 20 157,122.59 132,109.77
f) 2WKHU&XUUHQW$VVHWV 21 954.81 943.59
218,804.77 194,567.91
TOTAL 494,689.50 392,717.17
6LJQLFDQW$FFRXQWLQJ3ROLFLHV 1
Notes forming part of the Financial Statements WR
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Chartered Accountants Chartered Accountants Chairman and Managing Director
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54
CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD 1ST JANUARY, 2012 TO 30TH JUNE, 2013
(` in Million)
Period ended Year ended
Particulars Note No.
30th June, 2013 31st Dec., 2011
I. INCOME
5HYHQXHIURP2SHUDWLRQV 22 194,238.53
/HVV([FLVH'XW\ 6,181.09
1HW5HYHQXHIURP2SHUDWLRQV 188,057.44 134,152.59
2WKHU,QFRPH 23 8,903.04 1,375.74
Total Income 196,960.48
II. EXPENSES
Cost of Materials Consumed 56,643.70 40,562.96
3XUFKDVHRI6WRFNLQ7UDGH 59,134.62
&KDQJHV LQ ,QYHQWRULHV RI )LQLVKHG *RRGV :RUNLQ3URFHVV DQG 24 (578.21) (137.64)
6WRFNLQ7UDGH
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
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55
ANNUAL REPORT 2013
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED ON 30TH JUNE, 2013
(` in Million)
Period ended on Year ended on
Particulars
30th June, 2013 31st Dec., 2011
A. CASH FLOW FROM OPERATING ACTIVITIES
3URW/RVVEHIRUH7D[ (43,036.57)
$GMXVWPHQWVIRU
'HSUHFLDWLRQDQG$PRUWLVDWLRQ 13,255.70 9,160.75
)LQDQFH&RVWV 40,774.95
3URYLVLRQIRU/HDYH(QFDVKPHQW (0.10)
3URYLVLRQIRU*UDWXLW\ 59.63 30.54
3URYLVLRQIRU:DUUDQW\DQG0DLQWHQDQFH([SHQVHV 21.09 (6.36)
3URYLVLRQIRU$EDQGRQPHQWDQG6LWH5HVWRUDWLRQ&RVWV 135.65
Provision for Doubtful Debts 179.74 94.73
3UHPLXP'HFLHQF\5HVHUYH 2.38 -
,QWHUHVW5HFHLYHG (5,175.91) (743.09)
'LPLQXWLRQ:ULWHEDFNLQ9DOXHRI,QYHVWPHQWV (1.73)
Income from Investments and Securities Division (16.15) (279.59)
3URW/RVVRQ6DOH'LVFDUGRI)L[HG$VVHWV 3,813.90
Minority Interest for the period/year 3,807.60 5.21
2SHUDWLQJ3URWEHIRUH:RUNLQJ&DSLWDO&KDQJHV 13,820.18
$GMXVWPHQWVIRU
Inventories (759.41)
7UDGH5HFHLYDEOHV (1,460.57)
/RDQVDQG$GYDQFHV (30,932.78)
2WKHU&XUUHQW$VVHWV (11.22)
Trade Payables 1,624.18 4,056.27
2WKHU&XUUHQW/LDELOLWLHV 7,299.94
&DVKJHQHUDWHGIURPXVHGLQ2SHUDWLRQV (10,419.68)
/HVV7D[HV3DLG5HIXQGQHW 12,174.75 1,410.22
1HW&DVKIURPXVHGLQ2SHUDWLQJ$FWLYLWLHV (A) (22,594.43) (64,329.17)
B. CASH FLOW FROM INVESTING ACTIVITIES
6DOHRI)L[HG$VVHWV$GMXVWPHQWRQDFFRXQWRIGLVSRVDOFHVVDWLRQRI6XEVLGLDULHV1HW 12,412.59 1,456.93
,QFUHDVHLQ)L[HG$VVHWV,QFOXGLQJ&DSLWDO:RUNLQ3URJUHVV (75,906.68) (49,034.43)
,QFUHDVH'HFUHDVHLQ3UH2SHUDWLYH([SHQGLWXUHSHQGLQJ$OORFDWLRQ 559.08 (1,332.69)
6KDUHLQ3URW/RVVRI$VVRFLDWHV (5.09) (0.19)
$GMXVWPHQWRQ'LVSRVDO'LOXWLRQRI6XEVLGLDULHV$VVRFLDWHV (1,032.21) 49.74
,QWHUHVW5HFHLYHG 5,175.91 743.09
,QFUHDVH'HFUHDVHLQ2WKHU%DQN%DODQFHV (1,209.56)
(Purchase)/Sale of Investments (Net) 2,903.45
,QFUHDVHLQ*RRGZLOORQ&RQVROLGDWLRQ (11,001.62) (39.59)
Income from Investments and Securities Division 16.15 279.59
1HW&DVKIURPXVHGLQ,QYHVWLQJ$FWLYLWLHV (B) (68,087.98) (53,245.02)
C. CASH FLOW FROM FINANCING ACTIVITIES
,QFUHDVHLQ(TXLW\6KDUH&DSLWDO 157.53 10.63
(Decrease) in Preference Share Capital (155.95)
6KDUH3UHPLXP5HFHLYHG 2,642.80 260.69
,QFUHDVH'HFUHDVHLQ)RUHLJQ&XUUHQF\7UDQVODWLRQ5HVHUYHRQ&RQVROLGDWLRQ (1,204.10)
,QFUHDVH'HFUHDVHLQ6KDUH$SSOLFDWLRQ0RQH\ (5,448.74)
Increase in Minority Interest 1,975.71 100.91
$GMXVWPHQWLQ'HIHUUHG7D[/LDELOLWLHV - 7.96
,QFUHDVHLQ/RQJ7HUP%RUURZLQJV 150,768.30
,QFUHDVH'HFUHDVHLQ6KRUW7HUP%RUURZLQJV (21,484.06)
5HGHPSWLRQ3UHPLXPSDLGRQ)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV - (1,133.67)
)LQDQFH&RVWV (40,774.95)
Payment of Dividend (211.25) (350.55)
Tax on Dividend (31.33)
6KDUH,VVXH([SHQVHV (12.91) (0.25)
1HW&DVKIURPXVHGLQ)LQDQFLQJ$FWLYLWLHV (C) 86,221.05 116,173.71
Net Change in Cash and Cash Equivalents (A+B+C) (4,461.36)
&DVKDQG&DVK(TXLYDOHQWVDWEHJLQQLQJRIWKHSHULRG 6,911.35
&DVKDQG&DVK(TXLYDOHQWVDWHQGRIWKHSHULRG 2,449.99 6,911.35
2WKHU%DQN%DODQFHV 6,554.13 5,344.57
&DVKDQG%DQN%DODQFHVDWWKHHQGRIWKHSHULRG1RWH1R 9,004.12 12,255.92
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NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES: *RRGZLOO 7KH H[FHVV RI &RPSDQ\V VKDUH RI HTXLW\
and reserve of the subsidiary company over the cost of
A. Basis of Consolidation:
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its assets less liabilities as of the date of disposal is
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UHFRJQLVHGLQWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG
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date as that of the Company i.e., 30th June, 2013 except in
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the net income attributable to Shareholders of the
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Company.
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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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into existence.
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companies and jointly controlled entities have been DFFRUGLQJ WR WKH HTXLW\ PHWKRG 7KH FDUU\LQJ DPRXQW
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operations of the investee.
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circumstances and are presented in the same manner 5HJXODWLRQVWKHUHJXODWLRQVDQGUHODWHGRUGHUVDQG
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case on insurance subsidiary, no adjustment have
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57
ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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the assets.
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ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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60
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:
Percentage of Ownership
Name of the Subsidiary Country of Incorporation Interest as at
30th June, 2013 31st Dec., 2011
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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/LPLWHGZHIWK-DQXDU\(10) India 51% -
3HUFHSW(QHUJ\3ULYDWH/LPLWHGZHIWK-DQXDU\(10) India 51% -
Percentage of Ownership
1DPHRIWKH$VVRFLDWH-RLQW9HQWXUH Country of Incorporation 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/LPLWHGXSWRVW0DUFK India - 26%
5DGLXP(QHUJ\3ULYDWH/LPLWHG India 26% 26%
1RUWKZHVW(QHUJ\3ULYDWH/LPLWHGXSWRWK-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)
(` in Million)
As at $VDW
3. SHARE CAPITAL
30th June, 2013 31st Dec., 2011
Authorised:
3UHYLRXV\HDU(TXLW\6KDUHVRI` 10/- each 5,000.00 5,000.00
3UHYLRXV\HDU5HGHHPDEOH3UHIHUHQFH6KDUHVRI` 100/- each 1,000.00 1,000.00
Total 6,000.00 6,000.00
Issued, Subscribed and Paid-up:
Equity Shares
3UHYLRXV\HDU(TXLW\6KDUHVRI` 10/- each fully paid-up. 3,187.72 3,030.22
/HVV&DOOVLQ$UUHDUVE\RWKHUV 0.08 0.11
(a) 3,187.64 3,030.11
Preference Shares
L 3UHYLRXV \HDU &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI 150.74 301.56
` 33.32 each (Previous year `HDFKIXOO\SDLGXSUHGHHPDEOHDWSDURQVW2FWREHU
LL 3UHYLRXV \HDU &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI ` 33.34 2.56 7.69
each (Previous year `HDFKIXOO\SDLGXSUHGHHPDEOHDWSDURQVW)HEUXDU\
(b) 153.30 309.25
Total (a+b) 3,340.94 3,339.36
62
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(` in Million)
As at $VDW
4. RESERVES AND SURPLUS
30th June, 2013 31st Dec., 2011
a) Capital Reserve (including Capital Subsidy)
$VSHUODVW%DODQFH6KHHW 9.74 9.74
(a) 9.74 9.74
b) Capital Redemption Reserve
$VSHUODVW%DODQFH6KHHW 688.33 537.50
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 155.96
(b) 844.29
c) Securities Premium Account
$VSHUODVW%DODQFH6KHHW 43,576.23
$GG5HFHLYHGGXULQJWKH\HDU 2,642.09 259.66
/HVV6KDUH,VVXH([SHQVHV 12.91 0.25
/HVV3UHPLXPSD\DEOHRQ5HGHPSWLRQRI&RQYHUWLEOH%RQGV -
46,205.41 43,576.23
/HVV&DOOVLQ$UUHDUVE\RWKHUV 1.59 2.30
(c) 46,203.82 43,573.93
d) %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH
$VSHUODVW%DODQFH6KHHW 1,053.17 3,029.64
$GG/HVV7UDQVIHUUHGIURPWR6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 1,909.34 (1,976.47)
(d) 2,962.51 1,053.17
e) Legal Reserve
$VSHUODVW%DODQFH6KHHW 0.01 0.01
$GG/HVV$GMXVWPHQWRQDFFRXQWRI)RUHLJQ&XUUHQF\7UDQVODWLRQ - -
(e) 0.01 0.01
f) Foreign Currency Translation Reserve
$VSHUODVW%DODQFH6KHHW 2,546.06
$GG/HVV'XULQJWKHSHULRG\HDU 241.84
(f) 2,787.90 2,546.06
g) General Reserve
$VSHUODVW%DODQFH6KHHW 16,201.48
$GG7UDQVIHUUHGIURP6XUSOXVLQWKH6WDWHPHQWRI3URWDQG/RVV 300.00 1,000.00
(g) 16,501.48
h) 6XUSOXV'HFLWLQWKH6WDWHPHQWRI3URWDQG/RVV
$VSHUODVW%DODQFH6KHHW 5,377.71
$GG3URW/RVVIRUWKHSHULRG (28,261.19) (13,637.66)
$GG7UDQVIHUUHGIURP%RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH - 1,976.47
Balance available for Appropriations (22,883.48) 6,753.03
Less: Appropriations
7UDQVIHUWR&DSLWDO5HGHPSWLRQ5HVHUYH 155.96
7UDQVIHUWR%RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH 1,909.34 -
7UDQVIHUWR*HQHUDO5HVHUYH 300.00 1,000.00
3URSRVHG'LYLGHQG(TXLW\6KDUHV 198.77 159.39
Proposed Dividend - Preference Shares 27.68 33.77
Tax on Proposed Dividend 38.48 31.33
(h) (25,513.71) 5,377.71
Total (a to h) 43,796.04 69,450.43
(` in Million)
As at 30th June, 2013 $VDWVW'HF
5. LONG-TERM BORROWINGS
Non-Current Current Non-Current Current
a) Secured
Non-Convertible Debentures - - - 21.60
Term Loans
i) 7HUP/RDQVIURP%DQNV 276,657.05 29,419.33 91,156.44 16,334.73
ii) 7HUP/RDQVIURP)LQDQFLDO,QVWLWXWLRQV 15,019.23 1,099.35
iii) ([WHUQDO&RPPHUFLDO%RUURZLQJV - 589.41 1,164.44
iv) 9HKLFOH/RDQIURP%DQNV 151.79 130.67 76.74
v) )URP2WKHUV 0.05 - 75.25 -
vi) Deferred Payment Liabilities 7,146.20 - - -
(a) 298,974.32 31,238.76 99,700.02
b) Unsecured
5XSHH/RDQVIURP%DQNV - 2,000.00 6,749.94 30,331.35
)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV 11,652.34 - 10,423.73 -
Compulsorily Convertible Debentures 115.59 - - -
/RDQIURP2WKHUV 27.66 - 27,046.07 -
Sales Tax Deferral 16.64 8.78 40.93 15.51
(b) 11,812.23 2,008.78 44,260.67
Total (a+b) 310,786.55 33,247.54 143,960.69 49,305.10
63
ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5.1 Secured Loans:
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both present and future.
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64
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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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
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)LQDQFLDO<HDU 1,746.51 -
)LQDQFLDO<HDU -
)LQDQFLDO<HDU 37,566.62 2,735.10 -
)LQDQFLDO<HDU 35,025.11 2,301.75 -
)LQDQFLDO<HDU 2,051.44 -
)LQDQFLDO<HDU 1,610.93 452.53 -
)LQDQFLDO<HDU - 30.75 -
)LQDQFLDO<HDU - -
)LQDQFLDO<HDU - -
)LQDQFLDO<HDU -
7KH 'HIHUUHG 3D\PHQW /LDELOLWLHV LQFOXGLQJ LQWHUHVW DUH UHSD\DEOH LQ HTXDWHG DQQXDO LQVWDOOPHQWV RI ` 0LOOLRQ FRPPHQFLQJ IURP
1st December, 2015.
(` in Million)
As at $VDW
6. LONG-TERM PROVISIONS
30th June, 2013 31st Dec., 2011
3URYLVLRQIRU*UDWXLW\5HIHU1RWH1R% 161.62 106.36
3URYLVLRQIRU/HDYH(QFDVKPHQW5HIHU1RWH1R% 58.27 49.52
3URYLVLRQIRU$EDQGRQPHQWDQG6LWH5HVWRUDWLRQ&RVWV 1,279.51
Total 1,499.40 1,299.74
7. SHORT-TERM BORROWINGS
Secured
/RDQIURP%DQNV 21,039.46 29,573.50
:RUNLQJ&DSLWDO/RDQVIURP%DQNV 15,476.39
(a) 36,515.85
Unsecured
/RDQIURP%DQNV 7,620.83 40,642.32
/RDQIURP2WKHUV 13,946.97 -
(b) 21,567.80 40,642.32
Total (a+b) 58,083.65 79,567.71
65
ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7.1 Secured Loans
D 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`0LOOLRQ5HIHU1RWH1RDL
LY )RUVHFXULW\RIORDQVDPRXQWLQJWR`0LOOLRQ5HIHU1RWH1RDLL
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
0U3UDGLSNXPDU1'KRRW
7.2 Unsecured Loans
8QVHFXUHG/RDQVIURP%DQNVDUHVHFXUHGE\SHUVRQDOJXDUDQWHHVRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRWDQGORDQVDPRXQWLQJ
to `0LOOLRQDUHIXUWKHUVHFXUHGE\PRUWJDJHRISURSHUWLHVRZQHGE\RWKHUVVLWXDWHGDW$KPHGDEDG$XUDQJDEDGDQG0XPEDL
(` in Million)
As at $VDW
8. TRADE PAYABLES
30th June, 2013 31st Dec., 2011
0LFUR6PDOODQG0HGLXP(QWHUSULVHV 79.93 4.61
2WKHUV 15,695.71
Total 15,775.64 14,151.46
66
11. FIXED ASSETS
(` in Million)
*URVV%ORFN 'HSUHFLDWLRQ$PRUWLVDWLRQ,PSDLUPHQW 1HW%ORFN
Particulars As at Currency As at As at Currency As at As at As at
Addition on 'HGXFWLRQV Addition on For the 'HGXFWLRQV
31st Dec., Additions Translation 30th June, 31st Dec., Translation 30th June, 30th June, 31st Dec.,
Acquisition Adjustments Acquisition period Adjustments
2011 Adjustments 2013 2011 Adjustments 2013 2013 2011
i) Tangible Assets
)UHHKROG/DQG - 4.94 1.64 - 878.73 - - - - - - 878.73
Leasehold Land - - - - 48.05 - 1.17 - - 12.15 35.90 37.07
%XLOGLQJ - 15.59 24.70 16.67 6,821.05 - 262.00 4.30 2,538.71 4,282.34
Leasehold Improvements - 79.16 - 834.29 202.66 - 92.55 - 275.43 558.86 644.01
Plant and Machinery - 1,554.44 9.99 122,871.18 - 54,184.67 68,686.51
)XUQDFH 1,576.39 - - - - 1,576.39 - 22.15 - - 1,560.62 15.77 37.92
(OHFWULFDO,QVWDOODWLRQ - - - 172.92 - - - 113.63 59.29 56.14
Computers 366.67 - 5.13 (0.16) 469.85 - (0.13) 325.60 144.25
)XUQLWXUHDQG)L[WXUHV 356.31 - 115.00 9.71 7.24 468.84 - 41.00 2.33 223.16 245.68 175.50
2IFH(TXLSPHQWV 396.63 - 22.35 17.39 - 401.59 219.39 - - 240.20 161.39 177.24
Vehicles - 36.54 1.01 1,292.29 527.05 - 25.46 0.45 659.90 632.39 541.59
2WKHUV - 16.21 - 0.31 21.20 2.17 - 4.26 - 0.57 7.00 14.20 2.51
Total (i) 124,095.21 - 13,454.82 1,728.71 35.06 135,856.38 50,230.72 - 11,046.67 1,155.01 18.69 60,141.07 75,715.31 73,864.49
ii) Intangible Assets
&RPSXWHU6RIWZDUH 1,114.70 - - 0.01 1,241.09 494.99 - 306.56 - - 801.55 439.54 619.71
67
/LFHQVH)HHV - 22,274.40 - 22,333.77 - 1,522.19 2,631.17 - 419.06 21,914.71
3URGXFLQJ3URSHUWLHV - - - 4,847.31 4,044.23 - - - 4,425.93 421.38 765.23
2WKHUV - 0.03 - (31.14) 451.21 0.25 - 0.07 - (0.02) 0.30 450.91
Total (ii) 24,749.81 - 22,438.66 18,283.96 (31.13) 28,873.38 6,067.51 - 2,210.52 2,631.17 (0.02) 5,646.84 23,226.54 18,682.30
Total (i+ii) 148,845.02 - 35,893.48 20,012.67 3.93 164,729.76 56,298.23 - 13,257.19 3,786.18 18.67 65,787.91 98,941.85 92,546.79
Previous year as at 17,264.69 4,224.32 127.10 148,845.02 50,025.92 0.51 9,161.24 2,947.77 56,298.23 92,546.79
31st Dec., 2011
iii) &DSLWDO:RUNLQ3URJUHVV 55,223.46 95,252.89 95,252.89 55,223.46
*URVV%ORFNRI3ODQWDQG0DFKLQHU\LQFOXGHVWKHDPRXQWDGGHGRQUHYDOXDWLRQRQVW$SULODQGVW2FWREHU
Notes:
L 3ODQWDQG0DFKLQHU\*URVV%ORFNLQFOXGHVDVVHWVFDSLWDOLVHGXQGHUQDQFHOHDVHRI`0LOOLRQ3UHYLRXV\HDU`0LOOLRQDQGFRUUHVSRQGLQJDFFXPXODWHGGHSUHFLDWLRQRI` 515.55 Million
(Previous year ` 274.24 Million).
LL &RPSXWHU6RIWZDUH*URVV%ORFNLQFOXGHVDVVHWVFDSLWDOLVHGXQGHUQDQFHOHDVHRI` 10.71 Million (Previous year `1LODQGFRUUHVSRQGLQJDFFXPXODWHGGHSUHFLDWLRQRI`0LOOLRQ3UHYLRXV\HDU
` Nil).
LLL 2XWRIWKH'HSUHFLDWLRQIRUWKHSHULRGDQDPRXQWRI` 1.49 Million (Previous year `0LOOLRQLVWUDQVIHUUHGWR3UH2SHUDWLYH([SHQGLWXUH3HQGLQJ$OORFDWLRQ
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)
As at As at 15. LONG TERM LOANS AND ADVANCES As at As at
12. PRE-OPERATIVE EXPENDITURE
30th June, 31st Dec., (Unsecured, considered good) 30th June, 31st Dec.,
PENDING ALLOCATION
2013 2011 2013 2011
Capital Advances 13,049.80 15,413.26
Balance as per last Balance Sheet 2,165.20 832.51
Security/Other Deposits 468.60 1,017.17
Add: Incurred during the period/year 679.69 1,489.63 Advance Income Tax (Net of Provision) 470.38 128.65
2,844.89 2,322.14 MAT Credit Entitlement 7.51 -
Less: Expenditure apportioned over cost 421.63 113.10 Balance with Central Excise/Customs 2,705.08 1,766.14
of Fixed Assets/Capital Work-in Department
Progress/Capital Advances Loans and Advances to Others 26,828.66 18,935.61
/HVV7UDQVIHUWR6WDWHPHQWRI3URWDQG 817.14 43.84 Total 43,530.03 37,260.83
Loss
Total 1,606.12 2,165.20 16. CURRENT INVESTMENTS
UNQUOTED - Others
13. DEFERRED TAX ASEETS/(LIABILITY) - Net In Units of Mutual Funds 48.52 208.11
a) Deferred Tax Assets In Bonds 50.80 -
L ([SHQVHV FKDUJHG LQ WKH QDQFLDO 346.11 64.02 In Government or Trust Securities 433.90 -
statements but allowable as ,Q&HUWLFDWHRI'HSRVLWV 99.27 -
deduction in future years under the Total 632.49 208.11
Income Tax Act, 1961
17. INVENTORIES
ii) Unabsorbed Depreciation/Carried 13,328.80 -
Forward Losses $VWDNHQYDOXHGDQGFHUWLHGE\WKH
Management)
iii) Tax Credit Entitlement (Foreign 13,431.77 -
Raw Materials including Consumables, 13,527.94 13,583.66
Country)
Stores and Spares
iv) Others 192.79 459.92 Materials in Transit and in Bonded 2,560.53 2,295.62
(a) 27,299.47 523.94 Warehouse
b) Deferred Tax Liability Work-in-Process 994.04 830.39
Related to Depreciation and Finished Goods and Stock in Trade 4,172.90 3,800.85
Amortisation on Fixed Assets 9,374.13 7,875.13 Drilling and Production Materials 266.22 247.41
(b) 9,374.13 7,875.13 Crude Oil 103.02 60.51
Sim Card 32.17 78.97
Net Deferred Tax Assets/(Liability) (a-b) 17,925.34 (7,351.19)
Total 21,656.82 20,897.41
13.1 The Subsidiary, Videocon Telecommunications Limited (VTL) has
18. TRADE RECEIVABLES (Unsecured)
evaluated its future taxable income after it has been awarded the
Outstanding for a period exceeding six
8QLHG/LFHQVHV$FFHVVVHUYLFHVLQFLUFOHVZLWKHIIHFWIURPWK
months
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 Considered Good 715.10 251.41
6 circles. The management is of the opinion that there is a virtual Considered Doubtful 316.41 338.40
certainty, based on the future business plan, estimated increase 1,031.51 589.81
in subscribers base and considering additional capital infusion into Less: Provision for Doubtful Debts 316.41 338.40
the Company which would restrict further borrowings and related 715.10 251.41
FRVWVWKDWVXIFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVW Others - Considered Good 28,718.84 27,901.70
which the deferred tax assets can be realized. Accordingly, VTL
Total 29,433.94 28,153.11
has recognized net deferred tax assets of `11,583.48 Million on the
unabsorbed depreciation and business losses. 19. CASH AND BANK BALANCES
Cash and Cash Equivalents
(` in Million)
Cash on hand 18.50 11.63
As at As at
Cheques/Drafts on hand/in transit 0.63 0.47
14. NON-CURRENT INVESTMENTS 30th June, 31st Dec.,
2013 2011 Balances with Banks
- In Current Accounts 2,000.86 1,632.05
QUOTED
- In Fixed Deposits having maturity of 3 430.00 5,267.20
i) In Equity Shares (Fully paid-up) - Trade 38.04 50.84
months or less
ii) In Equity Shares (Fully paid-up) - 176.93 167.06
Others Sub-Total 2,449.99 6,911.35
UNQUOTED Other Bank Balances
In Dividend Warrant Accounts 10.44 28.53
i) In Equity Shares (Fully Paid-up) - 1,281.74 1,330.42
Trade In Earmarked Accounts 750.93 259.50
ii) In Equity Shares (Fully Paid-up) - 530.76 417.53 In Fixed Deposits earmarked towards Site 624.14 279.81
Others Restoration
iii) In Preference Shares (Fully paid-up) 1,020.38 0.38 In Fixed Deposits (held as margin money
for credit facilities)
iv) In Debentures/Bonds 4,452.67 3,908.30
- Maturity 12 months or less 3,761.26 3,053.77
v) In Other Investments 48.45 0.54
- Maturity more than 12 months 1,407.36 1,722.96
SHARE APPLICATION MONEY - 5,000.00
PENDING ALLOTMENT Sub-Total 6,554.13 5,344.57
Total 7,548.97 10,875.07 Total 9,004.12 12,255.92
68
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(` in Million) (` in Million)
As at As at Period ended Year ended
20. SHORT TERM LOANS AND ADVANCES 25. PRODUCTION AND EXPLORATION
30th June, 31st Dec., 30th June, 31st Dec.,
(Unsecured, considered good) EXPENSE - OIL AND GAS
2013 2011 2013 2011
Balance with Central Excise/Customs 937.24 1,480.11 Production and Exploration Expenses 14,982.65 783.99
Department Royalty 322.01 245.42
Deposits 223.08 1.40 Cess 371.20 310.38
Loans and Advances to Related Parties 0.54 368.58 Production Bonus 71.66 54.44
(Refer Note No. 41) *RYHUQPHQW6KDUHLQ3URW3HWUROHXP 10,812.77 7,587.37
Loans and Advances to Others 155,961.73 130,259.68 Insurance Expenses 42.05 26.16
Total 157,122.59 132,109.77 Total 26,602.34 9,007.76
26. ACCESS CHARGES, LICENSE FEES
21. OTHER CURRENT ASSETS
AND NETWORK EXPENSES
Interest Accrued 620.47 417.71
Access and Roaming Charges 3,207.91 4,830.65
Insurance Claim Receivable 1.45 10.71 License Fees and WPC Charges 352.00 246.71
Rent 3,266.62 3,012.58
Other Receivables 332.89 515.08
Leased Line, Port and Bandwidth Charges 986.05 909.12
Preliminary Expenses (to the extent not - 0.09 Power and Fuel 1,145.77 1,002.23
written off) IT Expenses 177.13 532.26
Total 954.81 943.59 Other Value Added Services Charges 96.37 100.39
Network Expenses- Others 190.62 234.01
Site Expenses- Managed Services 60.48 502.10
(` in Million)
Freight and Carriage Expenses 4.65 -
Period ended Year ended Repairs and Maintenance- Site Buildings 17.74 11.34
22. REVENUE FROM OPERATIONS 30th June, 31st Dec.,
2013 2011 Total 9,505.34 11,381.39
27. EMPLOYEE BENEFITS EXPENSE
Sale of Products/Services 193,752.71 136,692.28
6DODU\:DJHVDQG2WKHU%HQHWV 5,221.09 3,570.74
Income from Other Services 89.75 38.44
Contribution to Provident Fund and Other 255.07 181.39
Other Operating Revenue 396.07 114.35 Funds (Refer Note No. 32A)
Total 194,238.53 136,845.07 Staff Welfare Expenses 232.72 123.12
22.1 Particulars of Sale of Products/ Total 5,708.88 3,875.25
Services 28. FINANCE COSTS
Electrical and Electronic items 167,315.57 115,499.16 Interest Expenses 38,716.00 15,385.48
Crude Oil and Natural Gas 19,700.64 14,934.64 Other Borrowing Costs 1,081.22 178.40
Applicable Net Loss/(Gain) on Foreign 977.73 -
Telecommunication Services 6,052.26 6,226.25
Currency Transactions
Electrical Energy (Power) 688.86 32.23
Total 40,774.95 15,563.88
Insurance Business - Premium (4.62) - 29. OTHER EXPENSES
Earned (Net)
Power, Fuel and Water 1,432.19 860.71
193,752.71 136,692.28 Freight and Forwarding 2,098.95 1,442.57
Rent, Rates and Taxes 686.48 383.25
23. OTHER INCOME Repairs to Building 25.11 16.58
Interest Income 5,175.91 743.09 Repairs to Plant and Machinery 91.21 63.95
Other Repairs and Maintenance 225.43 213.60
Income from Investments and Securities 17.88 98.77 Insurance 114.46 78.78
Division Advertisement and Publicity 2,689.14 1,615.11
3URWRQ6DOHRI)L[HG$VVHWV - 180.38 Sales Promotion Expenses 215.55 125.77
Insurance Claim Received 34.12 160.04 Discount and Incentive Schemes 7,136.27 5,725.54
Bank Charges 386.40 677.63
Other Non Operating Income 3,675.13 193.46 Payment to Auditors' 29.07 20.23
Total 8,903.04 1,375.74 Donation 89.91 50.54
Directors' Sitting Fees 2.34 1.40
24. CHANGES IN INVENTORIES OF Legal and Professional Charges 452.46 897.40
FINISHED GOODS, WORK-IN- Liquidated Damages 1.30 -
PROCESS AND STOCK-IN-TRADE Sim Cost 44.60 127.98
Customer Service Cost 190.53 347.66
Closing Inventories
Claim and Commission related to Insurance 4.00 -
Finished Goods and Stock-in-Trade 4,275.92 3,861.36 Business
Work-in-Process 994.04 830.39 Royalty 262.39 180.76
Printing and Stationery 42.26 42.89
Sub-Total 5,269.96 4,691.75 Warranty and Maintenance 1,332.68 819.81
Opening Inventories Provision for Doubtful Debts 179.74 94.73
Loss on Sale/Discard of Assets, Capital 3,813.90 -
Finished Goods and Stock-in-Trade 3,861.36 3,777.62
Work-in-Progress including Pre-Operative
Work-in-Process 830.39 776.49 Expenditure pending Capitalisation
Sub-Total 4,691.75 4,554.11 Exchange Rate Fluctuation 5,314.66 3,013.23
2IFHDQG*HQHUDO([SHQVHV 2,088.70 1,132.59
Total (578.21) (137.64)
Total 28,949.73 17,932.71
69
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)
Period ended Year ended
31. EARNINGS PER SHARE
30th June, 2013 31st Dec., 2011
L 1HW3URW/RVVDWWULEXWDEOHWR(TXLW\6KDUHKROGHUV
1HW3URW/RVVIRUWKHSHULRGDIWHUWD[DGMXVWPHQWVIRUHDUOLHU\HDUV (28,261.19) (13,637.66)
Less: Dividend on Preference Shares including Tax on the same 32.38 39.25
1HW3URW/RVVDWWULEXWDEOHWR(TXLW\6KDUHKROGHUV (28,293.57) (13,676.91)
ii) Weighted Average Number of Equity Shares considered for calculation of Basic EPS 314,683,004 302,308,789
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)
iii) Basic Earnings per Share of ` 10/- each (`) (89.91) (45.24)
Diluted Earnings per Share of ` 10/- each (`) (89.91) (45.24)
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([SHQVH5HIHU1RWH1RLQWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVV
(` in Million)
B) 'HQHG%HQHW3ODQV Gratuity Leave Encashment
30th June, 31st Dec., 2011 30th June, 31st Dec., 2011
2013 2013
I) The amounts recognised in the Balance Sheet as at the end
of the period:
a) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQ 253.24 193.01 67.87 67.36
b) Fair value of Plan Assets 55.34 54.74 - -
c) )XQGHG6WDWXV6XUSOXV'HFLW (197.90) (138.27) (67.87) (67.36)
d) Net Assets/(Liability)
i) Non Current (161.62) (106.36) (58.27) (49.52)
ii) Current (36.28) (31.91) (9.60) (17.84)
II) 7KHDPRXQWVUHFRJQLVHGLQWKH6WDWHPHQWRI3URWDQG/RVV
for the period:
a) Current Service Cost 70.06 37.87 26.52 18.61
b) Interest Cost 26.07 12.47 7.62 4.96
c) Actuarial (Gains)/Losses 19.48 14.31 21.39 11.59
d) Past Service Cost - - 0.01 -
e) Actual return on Plan Assets 7.52 4.31 - -
f) Total Expenses 108.09 60.34 55.54 35.16
III) The changes in Obligations during the period:
a) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQDWWKH 193.01 157.78 67.36 64.34
beginning of the period
b) Current Service Cost 70.06 37.87 26.52 18.61
c) Interest Cost 26.07 12.47 7.62 4.96
d) Actuarial (Gains)/Losses 19.48 14.31 21.39 11.59
e) Past Service Cost - - 0.01 -
f) %HQHW3D\PHQWV 55.38 29.42 55.03 32.14
g) 3UHVHQWYDOXHRI'HQHG%HQHW2EOLJDWLRQDWWKHHQG 253.24 193.01 67.87 67.36
of the period
IV) The changes in Plan Assets during the period:
a) Plan Assets at the beginning of the period 54.74 50.05 - -
b) Contribution by Employer 8.36 8.57 - -
c) $FWXDO%HQHWVSDLG 15.28 8.19 - -
d) Plan Assets at the end of the period 55.34 54.74 - -
e) Actual return on Plan Assets 7.52 4.31 - -
V) Actuarial Assumptions
a) Discount Rate - 8% per annum
b) Mortality - LIC (1994-96) Ultimate
c) Turnover Rate - 5% at younger ages reducing to 1% at older ages
d) Future Salary Increase - 5% per annum
70
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(` in Million)
71
ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
a) VTL challenged before the Telecom Dispute Settlement Appellate B. Unincorporated Joint Ventures:
7ULEXQDO7'6$7WKHFODLPRI/LTXLGDWHG'DPDJHVLQUHVSHFWRI
a) The Company has participating interest of 25% in Ravva Oil
circles (i.e. Andhra Pradesh, Assam, Haryana, Jammu & Kashmir,
and Gas Field Joint Venture (JV) through a Production Sharing
Karnataka, Kolkata, Madhya Pradesh, North East, Uttar Pradesh
Contract (PSC). Other members of the JV are Oil and Natural
(DVW DQG :HVW %HQJDO VHHNLQJ LQWHULP VWD\ DQG QDOO\ VHWWLQJ
Gas Corporation Limited, Cairn India Limited (formerly Cairn
aside the demand, inter alia on the ground that (1) there has been
Energy India Pty Limited) and Ravva Oil (Singapore) Pte.
a delay in the allocation of start-up spectrum; (2) delay in SACFA
Limited. The parties have pursuant to the PSC, entered into
clearance should have been calculated on the actual maximum
a Joint Operating Agreement. Cairn India Limited is now the
delay and not the average delay; and (3) delay in meeting 10% roll-
Operator (Cairn Energy India Pty Limited was the Operator
out obligations was on account of introduction by the DoT of new
upto 15th October, 2012).
and onerous conditions in the license agreement (e.g. LI Testing,
security clearance of equipment, etc.). b) The Company had participating interest of 8.4% in Block
WA-388-P in exploration permit for a term of 6 years from
E 7KH7'6$7KDVSDVVHGDQRUGHUDQGMXGJPHQWRQWK-DQXDU\
28th August, 2006. The Joint Venture (JV) comprised of the
2012 whereby it has set aside the demands of DoT in respect of
&RPSDQ\2LOH[/LPLWHG*XMDUDW6WDWH3HWUROHXP&RUSRUDWLRQ
10 circles and directed DoT to give opportunity to the licensee
Limited, Hindustan Petroleum Corporation Limited, Bharat
before raising these fresh demands for liquidated damages. The
Petroleum Corporation Limited, Sasol Petroleum Australia
+RQEOH 7'6$7 YLGH LWV VDLG MXGJPHQW KDV DOVR GLUHFWHG 'R7 WR /LPLWHGDQG$SDFKH1RUWKZHVW3W\/LPLWHG$SDFKH$SDFKH
refund the amount of ` 242.30 Million paid by VTL as liquidated was the Operator with 40% interest in JV. The Petroleum
damages in respect of 10 circles along with 12% interest and VTL Exploration Permit WA-388-P expired on 27th August, 2012
has been directed to deposit bank guarantees for the amount of and ceased to be inforce.
liquidated damages originally demanded. The order of the TDSAT
dated 13th January, 2012 has been challenged by the DoT before c) On 15th November, 2006, the consortium, comprising
the Honble Supreme Court and by an order dated 23rd November, 9LGHRFRQ-3'$/LPLWHG9LGHRFRQ-3'$RQHRIWKH
2012 the Honble Supreme Court has admitted the appeal and has wholly owned subsidiaries, Oilex (JPDA 06-103) Limited as
passed an interim order staying the interest payable on the principal Operator, Bharat PetroResources JPDA Limited and GSPC
DPRXQWLQWHUPVRIWKHRUGHUDQGMXGJHPHQWGDWHGWK-DQXDU\ (JPDA) Limited, was allotted the petroleum block JPDA 06-
2012 passed by TDSAT. 103, under a Production Sharing Contract (PSC) by the Timor
Sea Designated Authority. This block is located in the Timor
c) VTL has also challenged the claim of Liquidated Damages in Sea between Australia and Timor-Leste. Videocon JPDA had
UHVSHFWRIFLUFOHVLH%LKDU*XMDUDW.HUDOD2ULVVD5DMDVWKDQ originally a participating interest of 25% in the PSC. Oilex has
Tamil Nadu, Uttar Pradesh-West) before the TDSAT, seeking interim farmed-out 15% of its 25% Participating Interest to Japan
stay and setting aside the demand, inter alia on the similar grounds. Energy. Videocon JPDA has farmed-out 5% of its Participating
VTL is hopeful that similar order may be passed by Honble TDSAT ,QWHUHVW WR 3DQ 3DFLF 3HWUROHXP RI $XVWUDOLD UHGXFLQJ WKH
as passed in its order dated 13th January, 2012. same to 20%.
7KHQDOGHPDQGVSD\DEOHE\97/LIDQ\LVWKHUHIRUHXQDVFHUWDLQDEOH Out of the four commitment wells, two exploration wells at Lore
37. The Parent Company alongwith the subsidiary Videocon International and Lolotoe were drilled unsuccessfully. Autoridade Nacional
Electronics Limited and 11 other entities (collectively referred to as do Petroleo (ANP) has agreed to a 12 months extension to the
SULPDU\([SORUDWLRQSHULRGVXEMHFWWRDUHOLQTXLVKPHQWRI
2EOLJRUV RU LQGLYLGXDOO\ DV %RUURZHU H[HFXWHG )DFLOLW\ $JUHHPHQW
the PSC area. The Joint Venture (JV) has proposed to drill one
with the consortium of existing domestic rupee term lenders, under
out of the two remaining commitment wells in lieu of excess
the obligor/co-obligor structure, wherein all the Rupee Term Loans of
seismic data acquired, to which ANP has reserved its position
the Obligors are pooled together. The Borrower entities are Videocon
until the results of the drilling of the third commitment well
Industries Limited, Value Industries Limited, Trend Electronics Limited,
are available. The JV has further acquired 200 sq. kms. 3D
KAIL Limited, Millennium Appliances India Limited, Applicomp (India)
Seismic Survey in the northern part of the Block and based
Limited, Sky Appliances Limited, Techno Electronics Limited, Century
on processing thereof, decision to spud third commitment
Appliances Limited, PE Electronics Limited, Next Retail India Limited,
exploration well at Bazartete prospect has been taken.
Evans Fraser and Co. (India) Limited and Videocon International
Electronics Limited (VIEL). As per the said Facility Agreement, the Parent d) Videocon Mozambique Rovuma 1 Limited (VMRL), one of
&RPSDQ\LVDJHQWRIWKH2EOLJRUVDQGKDVEHHQUHIHUUHGWRDV2EOLJRU the wholly owned subsidiaries, has executed a participation
Agent. The Rupee Term Loans have to be utilised for the purpose agreement with Anadarko Mozambique Area 1 Limitada, a
PHQWLRQHGLQWKH)DFLOLW\$JUHHPHQWZKLFKLVPDLQO\IRUUHQDQFLQJRI wholly owned subsidiary of Anadarko Petroleum Corporation,
existing Rupee Term Loans of the Obligors. Accordingly, the Rupee Term USA. Pursuant to this Agreement, VMRL has acquired
Loans of ` 20,439.54 Million have been allocated to respective Obligors 10% participating interest in the Oil Block covering Area 1
based on their outstanding amount as on 31st December, 2011. As the Offshore of the Rovuma Block, Republic of Mozambique. The
Parent Company and VIEL are co-obligors, they are contingently liable Agreement was closed on 26th December, 2008 (the Closing
in respect of the borrowings of other Obligors/Borrowers to the extent Date).
of outstanding balance of Rupee Term Loans as on 30th June, 2013 of
Total 28 wells drilled to date, of which 10 Exploration Wells and
` 17,919.40 Million (Previous year ` Nil).
12 Appraisal Wells were successful in locating enough Natural
38. Joint Venture Disclosure: *DVWRVXSSRUWODUJHFRPPHUFLDOO\YLDEOH/1*3URMHFWV
A. 7KH )LQDQFLDO 6WDWHPHQWV UHHFW WKH VKDUH RI WKH *URXS LQ WKH *DV LV ORFDWHG LQ WKH 3URVSHULGDGH DQG *ROQKR$WXP
assets and the liabilities as well as the income and the expenditure Discovery Areas. The Prosperidade Discovery Area is a
of Joint Venture Operations on a line-by-line basis. The Group straddling resources shared by the Area1 JV Partners and
incorporates its share in the operations of the Joint Venture based Area4 JV Partners, led by ENi.
on statements of account received from the Operator. The Group
For Prosperidade Discovery Areas, a Pre-Unit and Cooperation
KDVLQWHUPVRI6LJQLFDQW$FFRXQWLQJ3ROLF\1R(UHFRJQLVHG
Term Sheet has been executed on 17th December, 2012
abandonment costs based on the technical assessment of current
by and between Anadarko Mozambique Area1 Limitada, on
costs as cost of producing properties and has provided Depletion
behalf of Area1 JV Parties and Eni East Africa on behalf of
WKHUHRQ XQGHU 8QLW RI 3URGXFWLRQ PHWKRG DV SDUW RI 3URGXFLQJ
Area 4 JV Parties, to develop and produced in a manner that
Properties in line with the Guidance Note on Accounting of Oil unitizes the Straddling Reservoir under reasonable terms
and Gas Producing Activities issued by the Institute of Chartered and conditions, in compliance with applicable Mozambican
Accountants of India. Petroleum Laws and Regulations. Area 1 and Area 4, located
72
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
offshore Mozambique, comprise multiple hydrocarbon During drilling of Wahoo #5, oil and gas shows have been
reservoirs, some of which are fully contained within each area, reported within the Coquina section. The well logs have
this agreement only concerns those reservoirs that straddle also indicated Oil saturation in the interval 5,188.76 to
the boundary of the two areas. 5,295.14 metres.
ii) Sergipe Concession: Sergipe Blocks are Located in the
The LNG park plan has been evolved which envisages the
North-Eastern offshore of Brazilian Basin. BM-SEAL-11
development, construction and operation of an LNG park
Concession has 4 blocks and covers an area of 2,831 sq.
comprising LNG trains and common facilities that will provide km., in the Deep Waters of Sergipe Basin with Petrobras
liquefaction services to Operators for potential capacity of up as JV Partner and Operator has witnessed Discoveries
to 50 MMTPA. in the Barra, Farfan, Cumbe, Papangu and Poco Verde
Mozambique LNG is emerging as a global LNG leader with which are all in different stages of Appraisal/Evaluation
Phases along with neighbouring Joint Venturers and
up to 65+ Tcf of recoverable natural gas resources discovered
heading towards commercialization. BM-SEAL-11 is
to date in the Offshore Area 1 of Mozambique. By the end of
going to become Oil, Gas and Condensate Field. VEBL
2013, the JV will have invested approximately $3 billion (gross), has 20% participating interest in the Sergipe Concession
DQGZLOOKDYHPDGHVLJQLFDQWDGYDQFHPHQWVLQDZRUOGVFDOH
/1*GHYHORSPHQWZLWKUVWFDUJRHVH[SHFWHGLQDQGD 7KHUVWH[SORUDWLRQZHOOZDVWDNHQXSE\WKH-9DW%DUUD
design that facilitates future expansions of up to 50 MMPTA. LQ%ORFN6($/0UHVXOWLQJLQDGLVFRYHU\QRWLHGRQ
7KH-9KDVDOUHDG\GLVFRYHUHGVXIFLHQWUHVRXUFHVWRVXSSRUW 27th October, 2010.
a development of this scale and is continuing to explore in the In October, 2012 hydrocarbons discovery was made
Offshore Area 1. during drilling of well 1-BRSA-1083-SES (1-SES-167),
LQIRUPDOO\NQRZQDV)DUIDQVLWXDWHGLQDZDWHUGHSWKRI
e) On 4th September 2009, Videocon Indonesia Nunukan Inc.
PHWUHV ORFDWHG NP IURP WKH FLW\ RI$UDFDMX
(VIN), one of the wholly owned subsidiaries, has executed
The Farfan well is about 21 km. southeast to the Barra
a Farmout Agreement with Anadarko Indonesia Nunukan
Exploration Well 1-SES-158 (Barra). The discovery
Company - a wholly owned subsidiary Anadarko Petroleum at Farfan evidences of oil found at the depth of 5,582
Corporation, USA along with the related Joint Operating metres during well drilling, analysis of electric logs and
Agreement. The transaction was completed on 28th December XLGVDPSOHVUHFRYHUHG$K\GURFDUERQFROXPQRIDERXW
2009 (the Closing Date). Pursuant to this agreement, VIN has 44 metres gross and 40 metres net which is formed by
acquired a 12.50% participating interest in the Production porous sandstone carriers of light hydrocarbons as
Sharing Contract, covering the area referred to as Nunukan tested.
Block, located offshore Indonesia, with effect from 1st August
2009 (the Effective Date). Other members of the consortium In November, 2012 the discovery well #1-SES-166,
are Anadarko Indonesia Nunukan Company, PT Medco E&P LQIRUPDOO\ FDOOHG &XPEH WKH UVW H[SORUDWLRQ ZHOO
Nunukan and BPRL Ventures Indonesia, BV (a step down drilled in block SEAL-M-349, located 9.4 kms northeast
wholly owned subsidiary of Bharat Petroleum Corporation WR WKH GLVFRYHU\ ZHOO )DUIDQ GULOOHG UHFHQWO\ LQ %ORFN
Limited). Following Anadarkos sale of all the issued share SEAL-M-426 in Sergipe Concession and 109 km. from
WKHFLW\RI$UDFDMXLQZDWHUGHSWKRIPHWUHV7KHZHOO
capital in Nunukan Block, PSC to PT Pertamina Hulu Energi
proved presence of sandstone reservoirs saturated with
3+(1& HIIHFWLYH WK )HEUXDU\ 3+(1& EHFDPH
light hydrocarbons in the Maastrichtian and Campanian
new Operator. Badik-1 well intersected 133 net feet of Oil
sections with gross pay thickness of 98 metres in intervals
DQG JDV SD\ ZKLFK KDV EHHQ QRWLHG DV D GLVFRYHU\
of 4,578 to 4,605 metres (net pay of 17 metres) and 5,321
sq. km. 3D seismic data has been acquired in the Block to to 5,635 metres (net pay of 24 metres) respectively.
locate possible well location and identify further leads and The discovery in Cumbe augments the three earlier
prospects for drilling two appraisal wells and one commitment discoveries of Maastrichtian gas & condensate (Barra)
exploration well in the exploration phase. and Campanian light oil (Barra, Barra-1 and Farfan) in
C. Incorporated Jointly Controlled Entities: the Sergipe Concession. Furthermore, the discovery of
light oil in the Maastrichtian indicates presence of multiple
a) IBV Brasil Petroleo Limitada (IBV), a company incorporated pools of hydrocarbon, thus upgrading the potential of the
LQ %UD]LO LV MRLQW YHQWXUH EHWZHHQ 9LGHRFRQ (QHUJ\ 6($/6HUJLSH&RQFHVVLRQVLJQLFDQWO\
Brazil Limited (VEBL), a wholly owned subsidiary of the
Company and Bharat PetroResources Limited, a wholly Well BRSA-1131-SES (known as Papangu) was drilled
owned subsidiary of Bharat Petroleum Corporation Limited. GXULQJ WKH VHFRQG H[SORUDWLRQ SHULRG ZLWK WKH REMHFWLYH
IBV has interests in following four concessions with ten deep to test the presence of HC in stratigraphic traps mapped
water offshore exploration blocks in Brazil. at Campanian sandstones of the Middle Fm. Calumbi.
About 100 metres thick sandstones and conglomerates
i) Campos Concession: A discovery of hydrocarbons has reservoir with good porosity and permeability was
been made in Wahoo well prospect (BMC-30 Concession) encountered in the target zone, but it is water wet. The
in the Campos Basin. VEBL has 12.50% participating well was further deepened to explore possible carbonate
interest in the Wahoo Concession. The Concession is reservoirs/deltaic sandstones of Albian age. From 6,380
SUHVHQWO\ LQ YH \HDU (YDOXDWLRQ 3KDVH 'LVFRYHULHV metres thick sandstone rocks with good gas shows (up
announced in Appraisal Wells Wahoo #2 & Wahoo #3. DST 122 UGTs) were encountered which continued up to the
has been completed in Wahoo Exploration Well. These TD of 6,556 metres. Accordingly, the Notice of Discovery
Discoveries are in the Pre-Salt Upper-Sag Carbonates, was sent to ANP on 27th February, 2013.
of Aptian Age. Drilling of appraisal well Wahoo#4, with
oil column similar to Wahoo#1, was completed on 11th Poco Verde Joint Appraisal Area is a straddling resources
December, 2012. Wahoo #5 Appraisal Well was spudded area shared by the BM-SEAL-11 and BM-SEAL-4
on 17th June, 2013 and drilling was completed on 2nd Concessioners, both operated by Petrobras. Petrobras
October, 2013. The drilling result of the well has proved KDV SURSRVHG D MRLQW DSSUDLVDO SODQ FRYHULQJ %ORFN
beyond doubt the extent of the Upper Sag pay towards SEAL-M-590 in BM-SEAL-4 and Block SEAL-M-497 in
the NE of the Wahoo main structure. The success of the BM-SEAL-11 Concessions and for Campanian discovery
Wahoo #5 well as oil bearing has lowered the geological of the well Verde (1-SES-159), which was drilled during
uncertainty and thus the resources can be upgraded to a LQ WKH DGMDFHQW FRQFHVVLRQ %06($/ 3%
higher level. & OVL 25%). Well Verde had encountered 11.8 metres of
73
ANNUAL REPORT 2013
NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
net oil pay (44 degree API) in Paleocene and 3.8 metres Gas Block covering Area 1 Offshore of the Rovuma Block, Republic of
of net gas pay in Campanian. Fluid samples were taken Mozambique for a base consideration of US$ 2,475.00 Million. However,
from respective intervals. pending closure of the transaction, Videocon Mozambique Rovuma 1
Limited continues to be subsidiary of the Videocon Mauritius Energy
LLL 3RWLJXDU &RQFHVVLRQ 7KH UVW SKDVH RI H[SORUDWLRQ LQ
Limited.
Potiguar Concession located in the North-eastern region
of Brazil, has been extended with a commitment to drill 41. Related Party Disclosures:
exploration well in Block POT-M-760. VEBL has 10%
participating interest in the Potiguar Concession. As required under Accounting Standard 18 on Related Party
'LVFORVXUHVWKHGLVFORVXUHRIWUDQVDFWLRQZLWKUHODWHGSDUWLHVDVGHQHG
The Concession has 6 prospects in 2 different blocks, in the Accounting Standard are given below:
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 a) List of Related Parties where control exists and related parties with
Block 663. Ararauna commitment well drilled/spudded on whom transactions have taken place and relationship:
11th February, 2013 and was completed in August, 2013. i) Associates:
Drilling results are under study. - Radium Energy Private Limited - Associate - 26%
iv) Espirito Santos Concession: Located along the Brazilian - Goa Energy Private Limited - Associate - 26% (upto 1st March,
Continental Margin, extending from the central-southern 2012)
part of Espirito Santos State to the southern part of Bahia
- Northwest Energy Private Limited - Associate - 47% (upto 7th
State. The concession Blocks cover an area of 1,645 sq.
January, 2013)
km.
5HTXHLMDR:HOOGULOOHGLQ(60%ORFNZDVFRPSOHWHG ii) Key Management Personnel:
on 2nd September, 2012 which encountered thin oil zones - Mr. Venugopal N. Dhoot - Chairman & Managing Director
in the target Aptian sands and in fractured basement. ES-
-9DUHLQGLVFXVVLRQZLWK$13DERXWDMRLQW(YDOXDWLRQ 0U 5DMNXPDU 1 'KRRW &KDLUPDQ 0DQDJLQJ 'LUHFWRU
3ODQZLWKWKHDGMRLQLQJ%ORFNLQ(6&RQFHVVLRQ (Videocon Telecommunications Limited)
Grana Padano Well drilled announces the discovery of - Mr. Pradipkumar N. Dhoot - Whole Time Director (Videocon
a new oil accumulation (15API) in the post-salt layer of Hydrocarbon Holdings Limited)
Esprito Santo Basin, in Concession BM-ES-24 (Block - Mr. Sunil Kumar Jain - Senior Vice President
ES-M-661), located 58 km from the city of Vitria, state of
Esprito Santo. ANP has approved the Evaluation Plan. - Mr. Shekhar Jyoti - Vice President
Anadarko Corporation U.S.A. through its Brazilian subsidiary - Mr. Chandramani M. Singh - Vice President
is the operator in Campos Concession whereas Petroleo - Mr. Jaideep R. Rathore - Senior Vice President (upto 31st
Brasiliero S.A. is the operator in the other three Concessions. March, 2013)
E 9LGHRFRQ ,QQLW\ ,QIUDVWUXFWXUHV 3ULYDWH /LPLWHG LV D 0U$EKLMLW.RWQLV9LFH3UHVLGHQW
-RLQW 9HQWXUH &RPSDQ\ LQFRUSRUDWHG LQ ,QGLD ZLWK ,QQLW\
Infotech Parks Limited to carry on the business of infrastructure - Mr. Arun Pal - Vice President
development like construction of IT/ITes Parks, Biotech Parks 0U 5RRSDP $VWKDQD &KLHI ([HFXWLYH 2IFHU /LEHUW\
etc. The Joint Venture Company has not commenced its Videocon General Insurance Company Limited )
commercial operations.
b) Transactions/outstanding balances with Related Parties:
F 7KH QDQFLDO LQWHUHVW RI WKH *URXS LQ WKH MRLQWO\ FRQWUROOHG
LQFRUSRUDWHG HQWLWLHV EDVHG RQ QDQFLDO VWDWHPHQW UHFHLYHG The Company has entered into transactions with certain related
from these Joint Venture entities are as under: parties during the period as listed below. The Board considers such
(` in Million) transactions to be in normal course of business:
74
42. The effect of acquisition and disposal of subsidiaries during the 44. a) Operating Lease:
period on the Consolidated Financial Statements is as follows:
i) Lease payments under cancellable leases are recognised as an
(` in Million) H[SHQVHVLQWKH&RQVROLGDWHG6WDWHPHQWRI3URWDQG/RVV
Net Assets ii) The maximum obligation on long-term non-cancellable operating
Effect on
As at leases entered on or after 1st April 2001 payable as per the rentals
Name of the Company Consolidated
30th June, stated in respective agreements are as follows:
3URW/RVV
2013
a) Acquisitions/Incorporations (` in Million)
Videocon Mauritius Energy (6,390.99) (7,023.52) As at As at
Limited Minimum Lease Payments 30th June, 31st Dec.,
Indigo Energy Private Limited (0.29) (0.21) 2013 2011
Percept Energy Private (0.02) (1.52) Not later than 1 year 137.60 73.77
Limited Later than 1 year and not later than 549.11 404.01
b) Disposals/Cessation 5 years
Eagle E Corp Limited (0.08) (1,047.08) More than 5 years 269.59 397.52
Oil Services International 0.34 -
Total 956.30 875.30
S.A.S
Emerald Copoprate Ventures (0.09) 9.75 b) The Subsidiary Company viz. Videocon Telecommunications
Limited (formerly Videocon Limited (VTL) has entered into composite IT outsourcing
Energy Ventures Limited) DJUHHPHQWVZKHUHLQYHQGRUVKDYHVXSSOLHGWKH[HGDVVHWVDQG
IT related services to VTL. Based on the risk and rewards incidental
Mercury Corporate Ventures 0.13 (0.16)
WR WKH RZQHUVKLS WKH [HG DVVHW DQG OLDELOLW\ DUH UHFRUGHG DW WKH
Limited (formerly Videocon
fair value of the leased assets at the time of the receipt of the
Oman 56 Limited)
assets, since it is not possible for VTL to determine the extent of
43. As required by Accounting Standard 29 Provisions, Contingent [HGDVVHWVDQGVHUYLFHVXQGHUWKHFRQWUDFWDWWKHLQFHSWLRQRIWKH
/LDELOLWLHV DQG &RQWLQJHQW$VVHWV LVVXHG E\ WKH ,QVWLWXWH RI &KDUWHUHG FRQWUDFW6XFK[HGDVVHWVUHFHLYHGKDYHEHHQDFFRXQWHGIRUDV
Accountants of India, the disclosure with respect to Provision for QDQFHOHDVH7KHVHDVVHWVDUHGHSUHFLDWHGRYHUWKHVWDWHGXVHIXO
Warranty and Maintenance Expenses is as follows: lives applicable to similar assets of VTL. Since the entire amount
(` in Million) SD\DEOHWRYHQGRUVWRZDUGVWKHVXSSO\RI[HGDVVHWVDQGVHUYLFHV
during the period is accrued, the disclosures as per Accounting
Period ended Year ended
Standard 19 are not applicable.
Particulars 30th June, 31st Dec.,
2013 2011 45. The outstanding balances of certain Trade Receivables, Trade Payables,
a) Amount at the beginning of 632.15 638.51 'HSRVLWV$GYDQFHVDQG2WKHU&XUUHQW$VVHWV/LDELOLWLHVDUHVXEMHFWWR
the period FRQUPDWLRQ DQG UHFRQFLOLDWLRQ LI DQ\ +RZHYHU LQ WKH RSLQLRQ RI WKH
b) Additional provision made 653.24 632.15 PDQDJHPHQWDGMXVWPHQWLIDQ\ZLOOQRWEHPDWHULDO
during the period
46. In the opinion of the Board, the value on realisation of Current Assets,
c) Amount used 602.89 602.82 Loans and Advances in the ordinary course of the business would not
d) Unused amount reversed 29.26 35.69 be less than the amount at which they are stated in the Consolidated
during the period Balance Sheet and the provision for all known and determined liabilities
e) Amount at the end of the 653.24 632.15 is adequate and not in excess of the amount reasonably required.
period
(` in Million)
Consumer Electronics Crude Oil and
Telecommunications Power Others Total
and Home Appliances Natural Gas
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
i) Segment Revenue
- External 167,800.19 115,651.15 19,700.64 14,934.64 6,053.46 6,227.05 688.86 32.23 (4.62) - 194,238.53 136,845.07
- Inter Segment - - - - - - - - - - - -
Total Segment 167,800.19 115,651.15 19,700.64 14,934.64 6,053.46 6,227.05 688.86 32.23 (4.62) - 194,238.53 136,845.07
ii) Segment Result before Interest 16,143.89 12,313.78 (7,626.35) 4,771.93 (15,190.67) (12,393.32) 367.03 (25.14) (610.22) (5.01) (6,916.32) 4,662.24
Less: Finance Costs - - - - - - - - - - 40,774.95 15,563.88
Add: Other Unallocable Income/ - - - - - - - - - - 4,654.70 (826.47)
(Expenses)
75
ANNUAL REPORT 2013
(` in Million)
Consumer Electronics Crude Oil and
Telecommunications Power Others Total
and Home Appliances Natural Gas
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
3URW/RVVEHIRUH7D[DWLRQ - - - - - - - - - - (43,036.57) (11,728.11)
$GG6KDUHLQ3URW/RVVRI - - - - - - - - - - (5.09) (0.19)
Associates
$GG3URW/RVVRQ'LVSRVDO - - - - - - - - - - (1,032.21) 49.74
Dilution of holding in
Subsidiaries/Associates
Tax Expenses - - - - - - - - - - (12,005.08) 1,964.31
3URW/RVVEHIRUH0LQRULW\ - - - - - - - - - - (32,068.79) (13,642.87)
Interest
Add: Minority Interest - - - - - - - - - - 3,807.60 5.21
3URW/RVVIRUWKHSHULRG\HDU - - - - - - - - - - (28,261.19) (13,637.66)
As per our report of even date For and on behalf of the Board
For KHANDELWAL JAIN & CO. For KADAM & CO. V. N. DHOOT
Chartered Accountants Chartered Accountants Chairman and Managing Director
Place : Mumbai
Date : 29th November, 2013
76
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
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.
Sr. Name of the Subsidiary Reporting Amount in Exchange Capital Share Reserves Total Assets Total Investment Turnover/ 3URW%HIRUH Provision for 3URWDIWHU Proposed Country
No. Company Currency Rate Application Liabilities (Other than Total Income Tax Tax ( Net of Tax Dividend
Money Investments Write back)
Received in
Subsidiaries)
Indigo Energy Private
1 ` INR Mn 0.10 - (0.30) 0.10 0.30 - - (0.30) - (0.30) - India
Limited
4 Unity Power Private Limited ` INR Mn 0.10 - 23.60 762.84 739.14 - 197.39 38.39 14.76 23.63 - India
3URFLHQW(QHUJ\3ULYDWH
6 ` INR Mn 0.10 - (5.06) 297.31 302.27 - 0.08 (22.26) (5.60) (16.66) - India
Limited
7 Videocon Energy Limited ` INR Mn 1,000.00 - (7.19) 993.42 0.61 0.03 - (0.05) - (0.05) India
77
Prosperous Energy Private
8 ` INR Mn 0.10 - (0.08) 417.73 417.71 - - (0.06) (0.01) (0.05) India
Limited
Chhattisgarh Power
9 ` INR Mn 0.10 - (0.08) 1,509.66 1,509.64 - 0.07 (0.04) 0.001 (0.04) India
Ventures Private Limited
Videocon JPDA 06-103 INR Mn 59.94 0.06 - (347.71) 6,109.56 6,457.21 - 10.42 6.94 - 6.94 Cayman
11 US$
Limited USD Mn 0.001 - (5.80) 101.93 107.73 - 0.17 0.12 - 0.12 Island
Videocon Mozambique INR Mn 59.94 0.60 - (50.24) 27,132.83 27,182.47 - - (31.70) - (31.70) British Virgin
12 US$
Rovuma 1 Limited USD Mn 0.01 - (0.84) 452.66 453.49 - - (0.53) - (0.53) Island
Videocon Energy Brazil INR Mn 59.94 0.06 - (261.98) 50,486.10 50,748.02 - - (6.60) - (6.60) British Virgin
13 US$
Limited USD Mn 0.001 - (4.37) 842.28 846.65 - - (0.11) - (0.11) Island
Videocon Indonesia INR Mn 59.94 0.06 - (6.16) 3,136.15 3,142.25 - 0.001 (4.77) - (4.77) Cayman
14 US$
Nunukan Inc. USD Mn 0.001 - (0.10) 52.32 52.42 - 0.000 (0.08) - (0.08) Island
Videocon Australia WA- INR Mn 59.94 0.000 - (4.37) 1.49 5.86 - - (3.48) - (3.48) Cayman
15 US$
388-P Limited USD Mn 0.000 - (0.07) 0.03 0.10 - - (0.06) - (0.06) Island
Videocon Mauritius Energy INR Mn 59.94 0.06 - (7,023.58) 155,518.45 162,541.97 - 1,337.29 (7,021.94) - (7,021.93)
16 US$ Mauritius
Limited USD Mn 0.001 - (117.18) 2,594.56 2,711.74 - 22.31 (117.15) - (117.15)
FINANCIAL INFORMATION OF SUBSIDIARY COMPANIES
Sr. Name of the Subsidiary Reporting Amount in Exchange Capital Share Reserves Total Assets Total Investment Turnover/ 3URW%HIRUH Provision for 3URWDIWHU Proposed Country
No. Company Currency Rate Application Liabilities (Other than Total Income Tax Tax ( Net of Tax Dividend
Money Investments Write back)
Received in
Subsidiaries)
Videocon Hydrocarbon INR Mn 59.94 12,167.82 4,075.92 111,694.81 259,624.22 131,685.67 - 143,352.04 125,300.42 13,431.77 111,868.65 Cayman
17 US$
Holdings Limited Island
ANNUAL REPORT 2013
USD Mn 203.00 68.00 1,863.44 4,331.40 2,196.96 - 2,391.59 2,090.43 224.09 1,866.34
Videocon Oil Ventures
18 ` INR Mn 1,000.00 - (3,588.88) 12,971.52 15,560.40 - 0.59 (3,523.57) - (3,523.57) India
Limited
INR Mn 59.94 48.10 - 65.42 4,263.60 4,150.08 - 414.40 (172.70) - (172.70) British Virgin
19 Videocon Global Limited US$
USD Mn 0.80 - 1.09 71.13 69.24 - 6.91 (2.88) - (2.88) Island
INR Mn 156.08 351.45 647.89 (805.34) 196.75 2.75 - 48.71 (0.63) - (0.63) Sultanate of
20 Middle East Appliances LLC RO
RO Mn 2.25 4.15 (5.16) 1.26 0.02 - 0.31 (0.004) - (0.004) Oman
Videocon Electronic
(Shenzen) Limited (Chinese INR Mn 9.71028 8.93 - (29.80) 32.77 53.64 - 33.37 (27.68) - (27.68)
21 Name- Wei You Kang CNY China
Electronic (Shenzen)
Co Ltd) CNY Mn 0.92 - (3.07) 3.37 5.52 - 3.44 (2.85) - (2.85)
INR Mn 59.94 1.50 - (1.02) 1.50 1.02 - - (0.81) - (0.81)
22 Videocon Estelle Limited US$ Mauritius
USD Mn 0.03 - (0.02) 0.03 0.02 - - (0.01) - (0.01)
78
INR Mn 59.94 0.06 - (1.14) 0.06 1.14 - - (0.81) - (0.81)
23 Videocon Ivory Limited US$ Mauritius
USD Mn 0.001 - (0.02) 0.001 0.02 - - (0.01) - (0.01)
Videocon International
24 ` INR Mn 30,000.00 - (6,096.16) 58,011.85 34,108.01 2,758.30 0.22 (4,997.18) - (4,997.18) India
Electronics Limited
Jumbo Techno Services
25 ` INR Mn 1,000.00 - 1,221.92 6,246.29 4,024.37 - 0.22 (0.17) 0.39 (0.56) India
Private Limited
Senior Consulting Private
26 ` INR Mn 10.00 - (3.09) 1,386.34 1,379.43 - 0.22 (0.07) 0.05 (0.12) India
Limited
Videocon
27 ` INR Mn 54,337.50 - (40,344.93) 62,544.02 48,551.45 0.02 6,057.57 (23,619.58) (11,583.44) (12,036.14) India
Telecommunications Limited
Datacom
28 Telecommunications Private ` INR Mn 0.50 - (0.44) 1.93 1.87 - 1.20 (0.17) - (0.17) India
Limited
Liberty Videocon General
29 ` INR Mn 3,593.50 - (444.44) 3,258.15 109.09 2,228.34 209.08 (396.59) - (396.59) India
Insurance Company Limited
ATTENDANCE SLIP
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*
_______________________________________________________________________________________________
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$XUDQJDEDG
Paithan Road, Village: Chittegaon, Taluka: Paithan, Dist.: Aurangabad-431 105 (Maharashtra).
PROXY FORM
VIDEOCON INDUSTRIES LIMITED
TERE HERE
5HJG2IFH14 K.M. Stone, Aurangabad - Paithan Road, Village: Chittegaon, Taluka: Paithan,
Dist.: Aurangabad - 431 105 (Maharashtra)
DP ID*
Registered Folio No.
Client ID*
I/We____________________________________________________________________________________________ of
or failing him______________________________________ as my/our proxy to vote for me/us and on my/our behalf at
the TWENTY- FOURTH ANNUAL GENERAL MEETING of the Company to be held on Saturday, 28th December, 2013,
DWDPDWWKH5HJLVWHUHGRIFHRIWKH&RPSDQ\DW.06WRQH$XUDQJDEDG3DLWKDQ5RDG9LOODJH&KLWWHJDRQ
7DOXND3DLWKDQ'LVW$XUDQJDEDG0DKDUDVKWUDDWDQ\DGMRXUQPHQWVWKHUHRI