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Videocon Industries Cover-I.pmd 1 3/2/2008, 6:08 PM

 VIDEOCON INDUSTRIES LIMITED
BOARD OF DIRECTORS REGISTERED OFFICE
14 KM Stone, Aurangabad-Paithan Road,
Venugopal N. Dhoot Chairman &
Village Chittegaon, Tal. Paithan,
Managing Director
Dist. Aurangabad - 431 105 (Maharashtra)
Pradipkumar N. Dhoot Wholetime Director
Kuldeep Drabu MANUFACTURING FACILITIES
S. Padmanabhan 14 Km. Stone, Aurangabad – Paithan Road,
Karun Chandra Srivastava Village Chittegaon,
Taluka Paithan, Dist. Aurangabad
Maj. Gen. S.C.N. Jatar
(Maharashtra)
Arun Laxman Bongirwar
Village Chavaj, Via Society Area,
Satya Pal Talwar
Taluka & Dist. Bharuch
Didier Trutt Nominee - Thomson S.A. (Gujarat)
Johan Fant Nominee - AB Electrolux (Publ)
Village Majara, Taluka Warora,
Ajay Saraf Nominee - ICICI Bank Ltd. District, Chandrapur
B. Ravindranath Nominee - IDBI Ltd. (Maharashtra)
Plot No. 1D, Udyog Vihar Industrial Area,
Gautam Budh Nagar, Greater Noida,
COMPANY SECRETARY (U.P.)
Vinod Kumar Bohra
Plot No. 28, Khasra No. 293, Industrial Area,
Selakul, Vikasnagar, Dehradun,
AUDITORS (Uttranchal)
KHANDELWAL JAIN & CO.
Vigyan Nagar, RICO Industrial Area,
Chartered Accountants
Shahjanpur, District Alwar,
12 - B, Baldota Bhavan (Rajasthan)
117, Maharshi Karve Road,
Opp. Churchgate Railway Station, A-32, Butibori Industrial Area,
Mumbai - 400 020 Village Ruikhiri,
Nagpur (Maharashtra)
KADAM & CO.
Chartered Accountants Contents Page No.
Ahmednagar College Road, Kothi, Notice ................................................................... 1
Near Badve Petrol Pump, Directors’ Report ................................................. 3
Ahmednagar - 414 001 Corporate Governance ......................................... 6
Auditors’ Report ................................................... 14
Balance Sheet ...................................................... 16
BANKERS
Profit and Loss Account ...................................... 17
State Bank of India State Bank of Hyderabad
Cash Flow Statement ........................................... 18
Allahabad Bank State Bank of Indore
Schedules............................................................. 19
Bank of India State Bank of Mysore
Notes to Accounts ................................................ 25
Bank of Maharashtra State Bank of Patiala
Balance Sheet Abstract &
Central Bank of India The Federal Bank Ltd.
Company’s General Business Profile ................... 31
ICICI Bank Ltd. Union Bank of India
Statement Pursuant to Section 212
Indian Bank Vijaya Bank
of the Companies Act 1956 ................................. 32
Indian Overseas Bank Punjab National Bank
Consolidated Financial Statement ........................ 34
 ANNUAL REPORT 2006-07
NOTICE
NOTICE is hereby given that the Nineteenth Annual General Meeting of VIDEOCON
INDUSTRIES LIMITED (“the Company”) will be held on Monday, March 31, 2008 at
the registered office of the Company at 14 KM Stone, Aurangabad-Paithan Road,
Village Chittegaon, Taluka Paithan, Dist. Aurangabad 431 105 (Maharashtra) at 9.30
A.M. to transact the following business:
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Profit and Loss Account for the year
ended September 30, 2007, the Balance Sheet as at that date and the Reports of
the Board of Directors and Auditors thereon.
2. To declare a dividend on Equity Shares.
3. To appoint a director in place of Mr. Didier Trutt, who retires by rotation and,
being eligible, offers himself for re-appointment.
4. To appoint a director in place of Mr. Satya Pal Talwar, who retires by rotation
and, being eligible, offers himself for re-appointment.
5. To appoint a director in place of Mr. Arun Laxman Bongirwar, who retires by
rotation and, being eligible, offers himself for re-appointment.
6. To appoint Auditors and to fix their remuneration and in this regard to consider
and if thought fit, to pass, with or without modification(s), the following resolution
as an Ordinary Resolution:
“RESOLVED THAT M/s. Khandelwal Jain & Co., Chartered Accountants and
M/s. Kadam & Co., Chartered Accountants, be and are hereby appointed as
Joint Auditors of the Company, to hold office from the conclusion of this Annual
General Meeting until the conclusion of the next Annual General Meeting of the
Company, on such remuneration as shall be fixed by the Board of Directors.”
SPECIAL BUSINESS:
7. To consider and if thought fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution:
“RESOLVED THAT in accordance with the provisions of Section 255, 256, 257
and all other applicable provisions, if any, of the Companies Act, 1956 or any
statutory modification(s) or re-enactment thereof, Mr. Karun Chandra Srivastava,
who was appointed as an additional director pursuant to the provisions of Section
260 of the Companies Act, 1956 be and is hereby appointed as a director of the
Company, liable to retire by rotation, under the provisions of the Articles of
Association of the Company.”
By order of the Board of Directors of
Videocon Industries Limited
Vinod Kumar Bohra
Company Secretary
Place: Mumbai
Date : February 25, 2008
Registered Office:
14 KM Stone, Aurangabad- Paithan Road,
Village Chittegaon, Taluka Paithan,
Dist. Aurangabad 431 105 (Maharashtra)
NOTES
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL
MEETING (“MEETING”) IS ENTITLED TO APPOINT A PROXY TO ATTEND AND
VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A
MEMBER OF THE COMPANY. THE INSTRUMENT APPOINTING PROXY SHOULD,
HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY
NOT LESS THAN FORTY-EIGHT HOURS BEFORE COMMENCEMENT OF THE
MEETING.
2. Corporate Members intending to send their authorised representatives to attend the
Annual General Meeting are requested to send a certified copy of the Board Resolution
authorizing their representative to attend and vote on their behalf at the Annual
General Meeting.
3. In terms of the provisions of Articles of Association of the Company, Mr. Didier
Trutt, Mr. Satyapal Talwar and Mr. Arun Laxman Bongirwar retire by rotation and,
being eligible, offer themselves for re-appointment. Further, the Company has
received a notice in writing from a member alongwith a deposit of Rs. 500/-
proposing the candidature of Mr. Karun Chandra Srivastava for the office of the
Board of Directors of the Company under the provisions of Section 257 of the
Companies Act, 1956. Brief resume of each of these director(s), nature of their
expertise in specific functional areas and names of companies in which they hold
directorship and membership/chairmanship of Board Committees, as required in
terms of Clause 49 of Listing Agreement entered with the Stock Exchanges, in
India, is appended to the notice. The Board of Directors of the Company has
recommended the re-appointments/ appointments of the aforesaid directors.
4. An Explanatory Statement pursuant to Section 173(2) of the Companies Act,
1956, relating to the Special Business to be transacted at the Annual General
Meeting is annexed hereto.
1
5. Members are requested to bring their attendance slip along with their copy of
Annual Report to the meeting.
6. In case of joint holders attending the meeting, only such joint holder who is
higher in the order of names will be entitled to vote.
7. All documents referred to in the accompanying notice are open for inspection at
the Registered Office of the Company on all working days, except Friday, between
12 Noon to 2.00 PM upto the date of the Annual General Meeting.
8. The Register of Members and Share Transfer Books shall be closed from Tuesday,
March 18, 2008 to Monday, March 31, 2008 (“both days inclusive”) for
determining the names of members eligible for dividend on Equity Shares, if
declared at the meeting. The dividend on Equity Shares, if declared at the Meeting
will be paid on or around April 10, 2008 to those Members holding shares in
physical form, whose name appears on the Register of Members of the Company,
at the close of business hours on Monday, March 31, 2008 after giving effect to
all valid transfers in physical form lodged with the Company and/or its Registrar
and Share Transfer Agent on or before Monday, March 17, 2008. In respect of
shares held in dematerialized form, the dividend will be paid on the basis of
particulars of beneficial ownership furnished by depositories as at the end of
business hours on Monday, March 17, 2008.
9. The Company has not declared any dividend during financial year(s)1997 to
2004. The unclaimed and unpaid dividend in respect of financial year 1995-
1996 has been transferred, earlier when due, to the Investor Education and
Protection Fund (IEPF) established by the Central Government, pursuant to
provisions of Section 205A of the Companies Act, 1956.
The unclaimed dividends, for the financial year 1999-2000, in respect of erstwhile
Videocon International Limited (amalgamated with the Company) has been
transferred to the IEPF. Dividends for the financial year 2000-2001 and thereafter,
which remain unclaimed/unpaid for a period of seven years will be transferred
by the Company to IEPF, as and when due. Members who have not encashed
dividend warrant(s) for the aforesaid years are requested to obtain duplicate
warrant(s) by writing to the Company’s Registrar and Transfer Agents, M/s.
MCS Limited. Members are requested to note that no claims shall lie against the
Company or IEPF in respect of any amounts which were unclaimed and unpaid
for a period of seven years from the dates they first became due for payment
and no payment shall be made in respect of any such claims.
10. Members who hold shares in physical form in multiple folios in identical names
or joint accounts in the same order or names are requested to send the share
certificates to the Company’s Registrar and Transfer Agents, M/s. MCS Limited,
for consolidation into a single folio.
11. The shares of the Company are tradeable compulsorily in electronic form and
your company has established connectivity with both the depositories i.e.,
National Securities Depository Limited (NSDL) and Central Depository Services
(India) Limited (CDSL). In view of the enormous advantages offered by the
Depository system, Members are requested to avail the facility of dematerialization
of the Company’s shares on either of the depositories as aforesaid.
EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE
COMPANIES ACT, 1956
ITEM NO. 7:
The Board of Directors of the Company (“the Board”) has, pursuant to the provisions
of Section 260 of the Companies Act, 1956 (the Act) and Articles of Association of
the Company appointed Mr. Karun Chandra Srivastava as an additional director of
the Company.
In terms of the provisions of Section 260 of the Act, Mr. Karun Chandra Srivastava
holds office upto the date of ensuing Annual General Meeting. The Company has
received a notice in writing from a member alongwith a deposit of Rs. 500/- (Rupees
Five Hundred) proposing the candidature of Mr. Karun Chandra Srivastava for the
office of the Board of Directors of the Company under the provisions of Section 257
of the Act.
Keeping in view his rich expertise, it will be in the interest of the Company that Mr.
Karun Chandra Srivastava is appointed as a director, liable to retire by rotation, in
accordance with the provisions of the Articles of Association of the Company.
Save and except Mr. Karun Chandra Srivastava none of the other directors of the
Company is, in any way, concerned or interested in the Resolution set out at Item
No.7 of the notice. The Board recommends the Resolution set out at Item No.7 of the
notice for your approval.
By order of the Board of Directors of
Videocon Industries Limited
Vinod Kumar Bohra
Company Secretary
Place: Mumbai
Date : February 25, 2008
Registered Office:
14 KM Stone, Aurangabad- Paithan Road,
Village Chittegaon, Taluka Paithan,
Dist. Aurangabad 431 105 (Maharashtra)

BRIEF RESUME OF DIRECTORS BEING APPOINTED/RE-APPOINTED, NATURE OF THEIR EXPERTISE IN SPECIFIC FUNCTIONAL AREAS AND NAMES OF
COMPANIES IN WHICH THEY HOLD DIRECTORSHIP AND MEMBERSHIP/CHAIRMANSHIP OF BOARD COMMITTEES.
MR. DIDIER TRUTT:
SNo Particulars
1 Name of the director
2 Date of Birth
3 Educational Qualification
4 Date of appointment on the Board
5 Category of director
6 Area of Expertise/Senior Position
Held/Work Experience
7 Names of other directorships in
Public Limited Companies
8 Names of other Committees in
which Chairman
9 Names of other Committees in
which Member
10 Number of Shares Held
MR. SATYA PAL TALWAR
SNo Particulars
1 Name of the Director
2 Date of Birth
3 Educational Qualification
4 Date of appointment on the Board
5 Category of director
6 Area of Expertise/Senior Position
Held/Work Experience
7 Names of other directorships in
Public Limited Company
8 Names of the other Committees in
which Chairman
VIDEOCON INDUSTRIES LIMITED
Profile 9 Names of the other Committees in 1. Reliance Life Insurance Company Limited (Audit)
which Member 2. Reliance General Insurance Company Limited (Audit)
Mr. Didier Trutt
3. Reliance Capital Trustee Company Limited (Audit)
February 20, 1960 4. Reliance Communications Limited (Audit)
Graduate from l’Ecole Nationale d’Ingénieurs of Saint 5. Reliance Communications Limited (Shareholders)
Etienne ( ENISE ) 6. Reliance Communications Infrastructures Ltd. (Audit)
October 29, 2005 10 Number of Shares Held Nil
Non Executive- Non Independent (Nominee, Thomson S.A) MR. ARUN LAXMAN BONGIRWAR:
Joined Thomson in 1984. From 1987 to 1994, based in SNo Particulars Profile
Asia, he was responsible for Thomson Television Thailand,
1 Name of the Director Mr. Arun Laxman Bongirwar
and General Manager of Television and Video activities for
all industrial sites in South East Asia. 2 Date of Birth May 18, 1943
Between 1994 and 1999, he was in charge of all European 3 Educational Qualification I.A.S., M.Sc
operations for Television and Video activities.
4 Date of appointment on the Board December 8, 2005
Appointed in 1999 Vice President, Tubes Operations he
was in charge of the whole industrial and sales activities 5 Category of director Independent
for Europe and Asia first, then for the worldwide activities. 6 Area of Expertise/Senior Position Mr. Arun Laxman Bongirwar is a Senior Retired
He was appointed “Executive Vice President” in July 2003, Held/Work Experience Government Servant having vast experience in diversified
in charge of Tubes and Components activities. fields. He has held important positions with the
Since October 2005, he is Senior Executive Vice President Government, some of which are as under:
and Chief Operating Officer, Thomson.  Chairman, Tariff Authority for Major Ports.
Since 1992, Didier Trutt has been Foreign Trade Advisor  Chairman, Jawaharlal Nehru Port Trust (Ministry of
of France Shipping, Govt. of India), Mumbai.
Nil  Chief Secretary, Govt. of Maharashtra.
 Addl Chief Secretary (Revenue), Govt. of
Nil Maharashtra.
 Principal Secretary (and later Addl Chief Secretary)
to Chief Minister, Govt. of Maharashtra.
Nil
 Principal Secretary (Industries), Govt. of
Maharashtra.
Nil
 Development Commissioner, Santacruz Electronic
Export Processing Zone (SEEPZ), Mumbai.
Profile  Secretary to Chief Minister of Maharashtra, Govt. of
Maharashtra.
Mr. Satya Pal Talwar
7 Names of other directorships in 1. Maharashtra Airport Development Co.
June 14, 1939 Public Limited Company 2. Wanbury India Limited
Certified Associate of the Indian Institute of Bankers; 3. JSW Infrastructure & Logistics Limited
Member - Indian Council of Arbitration 8 Names of other Committees in Nil
December 8, 2005 which Chairman
Independent 9 Names of other Committees in Wanbury India Limited
which Member (Audit Committee)
He Carries with him forty years of operational and policy
formulation experience in Commercial and Central Banking. 10 Number of Shares Held Nil
In the past, he has served on following positions:
 Deputy Governor, Reserve Bank of India. MR. KARUN CHANDRA SRIVASTAVA
 Chairman, RBI Services Board, Reserve Bank of India, SNo Particulars Profile
Mumbai.
 Chairman, Advisory Board for Banking, Commercial 1 Name of the Director Mr. Karun Chandra Srivastava
& Financial Frauds (appointed by Central Vigilance 2 Date of Birth February 10, 1944
Commissioner of Government of India). 3 Education Qualification B.A, M.A, Diploma in System Mgmt, Diploma in
 Chairman & Managing Director, Bank of Baroda. Development Administration, I.A.S.
 Chairman & Managing Director, Union Bank of India.
 Chairman & Managing Director, Oriental Bank of 4 Date of appointment on the Board April 09, 2007
Commerce. 5 Category of director Independent
Other Positions Held:
 Chairman, Indian Banks Association (IBA). 6 Area of Expertise/Senior Position Mr. Karun Chandra Srivastava is a Senior Retired Civil Servant
 Director, Securities and Exchange Board of India. Held/Work Experience having 38 years of experience in diversified fields of
 Director, Industrial Development Bank of India. governance and administration. He has held important
 Director, Small Industries Development Bank of India. positions with the Government, some of which are as under:
 Director, Oriental Insurance Company.  Municipal Commisioner, Municipal Corporation of
 Director, Agricultural Finance Corporation Limited. Greater Mumbai.
 Director, IDBU International Finance Limited,  Chairman, 2nd Maharashtra Finance Commission,
Hongkong. Government of Maharashtra, Administrative Staff
 Director, Master Card International, Asia Pacific College Campus, Mumbai.
Regional Board, Singapore.  Additional Chief Secretary (Home Department),
He is presently Senior Advisor, YES Bank Limited Government of Maharashtra, Mantralaya, Mumbai
1. Reliance Life Insurance Company Limited  Metropolitan Commissioner, Mumbai Metropolitan
2. Reliance Capital Trustee Company Limited Regional Development Authority, Mumbai
3. Reliance General Insurance Company Limited  Joint Development Commissioner, Small Scale
4. Crompton Greaves Limited Industries, Ministry of Industries, Government of
5. Reliance Communications Limited India, New Delhi.
6. Housing Development Infrastructure Limited 7 Names of other directorships in Grauer & Weil (India) Limited
7. Reliance Asset Reconstruction Company Limited Public Limited Company
8. Reliance Communications Infrastructures Limited
8 Names of other Committees in Nil
9. Reliance Telecom Infrastructures Limited
which Chairman
10. Ambience Project & Infrastructure Limited
9 Names of other Committees in Nil
1. Crompton Greaves Limited (Audit)
which Member
2. Housing Development Infrastructures Limited (Audit)
10 Number of Shares Held Nil
2
 ANNUAL REPORT 2006-07

DIRECTORS’ REPORT
The Shareholders, 1. Conversion of FCCBs of US$1,000 each, due on March 07, 2011, at a conversion price
of Videocon Industries Limited (the Company) of Rs. 448.59 per equity share:
The Board of Directors of your Company are delighted to present the Nineteenth Annual S.No. Date of Allotment Number of Amount of Number of
Report together with the Audited Accounts, Auditors’ Report and the Audited Consolidated Bonds Converted Bonds Converted Equity Shares
Financial Statements for the year ended September 30, 2007. (US$) allotted pursuant
FINANCIAL RESULTS to conversion
The performance of the Company, on standalone basis, for the financial year ended 1 May 29, 2007 500 500,000 49,204
September 30, is as summarized below: 2 June 23, 2007 500 500,000 49,204
Rs. Millions
2. Conversion of FCCBs of US$1,000 each, due on July 25, 2011, at a conversion price
Particulars Year ended Year ended of Rs.507.00 per equity share:
30.09.2007 30.09.2006
S.No. Date of Allotment Number of Amount of Number of
Net Sales 82,854.24 72,188.17 Bonds Converted Bonds Converted Equity Shares
Other Income 1,663.62 1,654.44 (US$) allotted pursuant
to conversion
Total Income 84,517.86 73,842.61
1 June 23, 2007 99 99,000 9,044
Profit before Interest, Depreciation and Tax 18,119.35 14,750.93
Interest & Finance charges 3,106.51 2,258.80 Allotment of Securities after Balance Sheet Date:
Depreciation 4,183.88 3,355.47 Subsequent to the Balance Sheet Date, in accordance with the terms and conditions of
Issue of Foreign Currency Convertible Bonds, the Company allotted 8,339,350 equity shares,
Profit before Tax 10,828.96 9,136.66
pursuant to the Conversion of Foreign Currency Convertible Bonds, as under:
Provision for Taxation 2,276.77 951.64
1. Conversion of FCCBs of US$1,000 each, due on March 07, 2011, at a conversion price
Profit after Tax 8,552.19 8,185.02 of Rs. 448.59 per equity share
The Topline of the Company increased from Rs. 72,188.17 Million as on September 30, S.No. Date of Allotment Number of Amount of Number of
2006 to Rs. 82,854.24 Million representing an increase of 14.78% over the previous financial Bonds Converted Bonds Converted Equity Shares
year. Similarly, Profit after Tax increased from Rs. 8,185.02 Million as on September 30, (US$) allotted pursuant
2006 to Rs.8,552.19 Million for the year under review, representing an increase of 4.49% to conversion
over the previous financial year. 1 December 17, 2007 10,350 10,350,000 1,018,523
OPERATIONS 2 January 10, 2008 26,150 26,150,000 2,573,371
Highlights on the performance of the Company, during the year under review i.e., upto 3 January 30, 2008 10,500 10,500,000 1,033,286
Balance Sheet Date and material developments after the year under review, i.e., after Balance
Sheet Date are summarized hereunder: 2. Conversion of FCCBs of US$1,000 each, due on July 25, 2011, at a conversion price
of Rs.477.00 per equity share:
During the year, with a view to diversify its activities in order to derisk the business model,
the Company identified power generation; trading and dealing in various minerals including S.No. Date of Allotment Number of Amount of Number of
coal required for electricity/power generation; and telecommunication, as emerging business Bonds Converted Bonds Converted Equity Shares
for expansion(s) and diversification(s), while retaining the focus on its prime business (US$) allotted pursuant
segments viz., Consumer Electronics Goods and Home Appliances and Exploration of Oil to conversion
and Natural Gas. The Shareholders of the Company accorded their consent for altering the 1 December 17, 2007 13,900 13,900,000 1,349,726
Memorandum of Association by passing special resolution by Postal Ballot so as to enable
the Company to undertake diverse activities, as aforesaid. 2 January 10,2008 22,500 22,500,000 2,184,805
During the year, the Company continued its growth path in the Consumer Electronics & 3 January 30, 2008 1,850 1,850,000 179,639
Home Appliances Business. The business acquired from Electrolux pursuant to the
amalgamation of EKL Appliances Limited with the Company started yielding its result by APPROPRIATIONS
improving the Company’s market share in the Household segment.
DIVIDEND:
As the members are aware, the Company has participating interests in Oil & Gas exploration
activities in Australia, Timor Sea and Oman. You are also aware that your Company, jointly In accordance with the Company’s policy of balancing dividend pay-out with the requirement
with Bharat Petroleum Corporation Limited, has signed an agreement with Encana, Canada of deployment of internal accruals for its growth plans, your directors have pleasure in
for buying Encana’s participating interest in Brazil exploration activities. recommending a dividend of 35% (Rs. 3.50 per share) on equity shares for the financial
year ended on September 30, 2007, subject to approval by shareholders at the Nineteenth
Exploration activities are on as per the agreed exploration programmes at the respective oil Annual General Meeting. The dividend on equity capital, including dividend on shares issued
fields and the results are expected in the coming year or so. pursuant to conversion of FCCBs, amounting to Rs. 803.02 Million, if approved by the
With a view to enable the Company to tap the global equity market, as and when, the first members at the ensuing Annual General Meeting, would be paid out of the profits for the
exploration exercise gets converted into a proven field, it is decided to compile all the year. The dividend is free of tax in the hands of the shareholders.
global exploration activities into an Offshore Company. This Offshore Company is proposed
TRANSFER TO RESERVES
to be listed on London Stock Exchange at AIMs.
The Company, through one of its subsidiaries, has been granted a Letter of Intent for Your Board proposes to transfer Rs. 2,000 Million to the General Reserve. After
providing mobile phone services on Pan India basis. The subsidiary has made requisite appropriations, the balance amount of Rs. 14,516.42 Million (Previous year 8,380.87 Million)
payments of Rs.1650 crores and provided requisite guarantee of Rs.850 crores to is proposed to be carried to Balance Sheet.
Government of India as the licence fees. The license agreement and the spectrum allotment TRANSFER TO INVESTOR EDUCATION & PROTECTION FUND
are expected to be completed in due course of time. The Company is now engaged in
drawing up business plans for launch of mobile phone services on Pan India basis as and The Company has transferred a sum of Rs. 52,12,108 /- in respect of unclaimed/unpaid
when the spectrum release in various circles takes place. dividend for 1999-2000 and Rs. 31,19,526/- in respect of unclaimed/unpaid debenture
redemption amount, to Investor Education & Protection Fund, since the amount was due &
Issue/Allotment of Securities:
payable and remained unclaimed and upaid for a period of seven years, in terms of Section
During the year, under review, the Company allotted 416 equity shares to the shareholders 205A(5) of the Companies Act, 1956.
of erstwhile EKL Appliances Limited, pursuant to scheme of amalgamation of EKL Appliances
Limited with the Company. FIXED DEPOSITS
During the year, under review, in accordance with the terms and conditions of Issue of The Company has not accepted any deposit within the meaning of Section 58A of the
Foreign Currency Convertible Bonds, the Company allotted 107,452 equity shares, pursuant Companies Act, 1956.
to the Conversion of Foreign Currency Convertible Bonds, as under:

3
 VIDEOCON INDUSTRIES LIMITED
CONSERVATION OF ENERGY
The Company continues to emphases on conservation of energy, power and other energy
sources. As a part of continuous efforts, your Company has taken the following steps:
 All the new manufacturing facilities of the Company are equipped with hi-tech energy
monitoring and conservation systems to monitor usage, minimize wastage and increase
overall efficiency at every stage of power consumption.
 Use of energy saving lighting arrangement in shop floor and on roads inside
manufacturing facilities.
 Utilization of unconventional energy source such as Solar Energy.
 Timely maintenance & up-gradation of machinery & equipments to ensure that the
energy consumption is as minimal as possible.
 The Company has formed a team of the expert engineers engaged in the production
activity for taking up detailed study under guidance of management, by attending
seminars, obtaining expert opinion, research, on the possibilities of use of various
methods of optimum use of energy without affecting the productivity and educating
the production team members as well as whole of the staff to conserve energy.
The Company takes environment conservation seriously. It is working to equip its facilities
with methods that help recycle CRT glass, curb carbon emissions and other pollutants. The
Company at Bharuch glass plant has supported plantation of over 2,00,000 teak trees.
RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION
The Company is committed to introduce new products and improve existing products to meet
the ever-increasing demands of the consumers by fully exploring technological options and
advancements. The Company gives utmost importance to the Research & Development activities.
The R&D activities are carried out at in-house R&D Centre of the Company located in Aurangabad.
The focus is on developing new products in line with market demand, improving production
efficiency and lowering the cost of production.
1. Specific areas in which R&D carried out by the Company:
The Company has carried out Research and Development in the following areas:
 Development of new products; application and innovative equipments.
 Improvement in operating efficiencies.
 Reduction in manufacturing cost.
 Improvement in the quality of products.
2. Benefits derived as a result of the above R&D:
The Company has derived the following benefits as a result of Research and
Development:
 Superior range of components viz., panels and funnels to meet the demand for
large-size flat and slim CRT display products.
 Innovation of CRT Glass that intercepts harmful x-rays and conforms to health
regulation world wide.
 Reduction in cost i.e., cost savings.
 Highest Value to the Customers.
 Quality, reliability, durability, improvement and performance of the products have
increased thereby resulting in more acceptance of the products.
 Launch of new models with latest technology.
3. Future plan of action:
In the coming days, the Company is aiming to achieve development in the following
areas through Research and Development:
 Continuous up-gradation of R&D centre facilities to world class levels.
 Launching of New Brands under Videocon umbrella.
 Reducing the electricity consumption for consumer electronics and home
appliances.
 To bring in features of various products together.
 Development of latest technologies like Super True Flat CPT, Extra Slim CPT; HD
16:9 format CPT.
During the year under review, Company has incurred revenue expenditure of Rs. 0.95
million (0.001% of the turnover) on Research & Development.
Your Company is using the latest advances in technology for production. Taking into
consideration the advancements in technology, the Company continues to upgrade its
technical base to meet the needs of the consumers.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, the earnings in Foreign Exchange amounted to Rs. 4,381.24
Million (previous year Rs. 4,578.32 Million) and outgo in Foreign Exchange was
Rs. 10,136.77 Million (previous year 12,119.92 Million).
INFORMATION TECHNOLOGY
Your Company believes that Information Technology is the backbone of any industry in today’s
environment. The Company has taken it as a tool to improve productivity, efficiency and reliability.
As such, mySAP, a Customized ERP Module, has already been substantially implemented at
manufacturing facilities and branches of the Company, in India and foreign operations.
4
HEALTH, SAFETY AND ENVIRONMENT
Your Company recognizes its role in health and safety, as well as its responsibility towards
environment and society. The health and medical services are accessible to all employees
through well-equipped occupational health centers at all manufacturing facilities. Safety
and security of the personnel, assets and environmental protection are also on top of the
agenda of the Company at its manufacturing facilities.
Clean environment and sustainable development integrated with the business objective is
the focus of operations of the Company. The projects and activities are planned and designed
with environment protection as an integral part to ensure a safe and clean environment for
sustainable development.
APPOINTMENT/RE-APPOINTMENT OF DIRECTORS
During the year under review, Mr. Sanjiv Krishnaji Shelgikar and Mr. Claes John Bygge
resigned from the office of the Board of Directors of the Company. The Board places on
record its sincere appreciation for the valuable guidance received from them during their
tenure as members of the Board of Directors of the Company.
During the year under review, Mr. Karun Chandra Srivastava was appointed as an additional
director. In terms of the provisions of Section 260 of the Companies Act, 1956,
Mr. Karun Chandra Srivastava holds office upto the date of ensuing Annual General Meeting.
The Company has received a notice in writing from a member alongwith a deposit of
Rs. 500/- proposing the candidature of Mr. Karun Chandra Srivastava for the office of the
Board of Directors of the Company under the provisions of Section 257 of the Companies
Act, 1956. The Board recommends appointment of Mr. Karun Chandra Srivastava.
In terms of the provisions of Section 255, 256 of the Companies Act, 1956, the Articles of
Association of the Company, Mr. Didier Trutt, Mr. Satyapal Talwar and Mr. Arun Laxman Bongirwar
are liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, they
have offered themselves for re-appointment. The Board recommends their re-appointment(s).
The brief profiles of directors being appointed/re-appointed at the ensuing Annual General
Meeting forms part of notice of the ensuing Annual General Meeting.
PARTICULARS OF EMPLOYEES
The details of employees drawing remuneration in excess of the monetary ceiling prescribed
under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars
of Employees) Rules, 1975, during the financial year 2006-2007 is annexed to this report.
LISTING
The Equity Shares of the Company are listed on the Bombay Stock Exchange Limited and
National Stock Exchange of India Limited. The Global Depository Receipts are listed on The
Luxembourg Stock Exchange. The Foreign Currency Convertible Bonds are listed on
Singapore Exchange Trading Securities Limited.
SUBSIDIARY COMPANIES
During the year under review, Sky Billion Trading Limited, Global Energy Inc., and Videocon
Display Research Company Limited became subsidiaries of the Company. Further, Mars
Overseas Limited and Gajanan Electronics and Supply Private Limited ceased to be
subsidiaries of the Company.
As such, as on 30th September 2007, the Company had 12 subsidiaries viz., Paramount
Global Limited, Middle East Appliances LLC, Videocon Global Limited, Powerking Corporation
Limited, Godavari Consumer Electronics Appliances Private Limited, Mayur Household
Electronics Appliances Private Limited, Videocon (Mauritius) Infrastructure Ventures Limited,
Eagle Corporation Limited, Venus Corporation Limited, Sky Billion Trading Limited, Global
Energy Inc., and Videocon Display Research Company Limited.
The Company has received an exemption from the Central Government u/s 212(8) of the
Companies Act, 1956 with regard to attaching of the balance sheet, profit and loss account
and other documents of the subsidiaries for the year 2006-2007.
The Company undertakes that:
1. The Annual Accounts of the subsidiary companies and the related detailed information
will be made available to any member seeking such information, on free of cost basis,
at any point of time upon receipt of request for the same.
2. The Annual Accounts of the subsidiary companies will also be kept for inspection by
any investor at the Registered Office of the Company and at the Registered Office of
the Subsidiary Company also.
A summary of the key financials of the Company’s subsidiaries is included in this report.
CONSOLIDATED FINANCIAL STATEMENTS
The Directors present the consolidated financial statements, duly incorporating the
Company’s 100% ownership interest in Paramount Global Limited, Middle East Appliances
LLC, Mars Overseas Limited (Upto 26th September 2007), Videocon Global Limited,
Powerking Corporation Limited, Gajanan Electronics Supply Private Limited (Upto 26th
September 2007 ), Mayur Household Electronics Private Limited, Godavari Consumer
Electronics Appliances Private Limited, Eagle Corporation Limited, Venus Corporation
Limited, Videocon (Mauritius) Infrastructures Ventures Limited, Sky Billion Trading Limited
(w.e.f., 21st November 2006), Global Energy Inc (W.e.f., 10th October 2006) and Videocon
Display Research Company Limited (w.e.f., 09th March 2007).
 ANNUAL REPORT 2006-07

The Consolidated financial results also includes interest through Eagle Corporation Limited DIRECTORS’ RESPONSIBILITY STATEMENT
(subsidiary) in Technologies Display Americas LLC, Technologies Displays Mexicana S.A. de.
CV, TTD International S.A, TDP Spzoo, TTD International Limited, TGDC Guangdong Displays In terms of Section 217(2AA) read with Section 292A of the Companies Act, 1956, we, the
Company Limited, Thomson Display Technology Research & Company Limited, VDC directors of VIDEOCON INDUSTRIES LIMITED, state in respect of Financial Year 2006-07
Technologies S.P.A, VDC Technologies Deutschland Gmbh (w.e.f. 14th September 2007). that:
The Company holds 41.67% equity interest in Evans Fraser & Co (India) Ltd. The same has a) in the preparation of annual accounts, the applicable Accounting Standards have been
been accounted in the consolidation. followed along with proper explanation relating to material departures;
The Financial statements also includes the effects of Company’s interest in various Joint b) the directors have selected such accounting policies and applied them consistently and
Ventures. The details on Joint ventures and Companies interest are given in the Note No. 10 made judgments and estimates that are reasonable and prudent so as to give a true and
of Schedule 15(B) to the Accounts. fair view of the state of affairs of the Company at the end of the financial year and of the
profit of the Company for that period;
The Consolidated financial results have been prepared in line with the requirements of
Accounting Standard 21 “Consolidated Financial Statements”, Accounting Standard 27 – c) the directors have taken proper and sufficient care for the maintenance of adequate
“Financial Reporting of Interests in Joint Ventures” and Accounting Standard 23 – accounting records in accordance with the provisions of this Act for safeguarding the
“Accounting for Investments in Associates in Consolidated Financial Statements”. assets of the Company and for preventing and detecting fraud and other irregularities;
d) the directors have prepared the annual accounts on a going concern basis;
CASH FLOW STATEMENT e) the Board has constituted an Audit Committee comprising of 3 (three) independent
As required under Clause 32 of the Listing Agreement with the Stock Exchanges, in India, directors;
a Cash Flow Statement, as prepared in accordance with the Accounting Standard on Cash f) The Audit Committee has also been delegated with authority for investigation and access
Flow Statement (AS 3) issued by the Institute of Chartered Accountants of India, is given for full information and external professional advice for discharge of the functions delegated
along with Balance Sheet and Profit and Loss Account. to it by the Board;
g) the Board agrees that the recommendations of the Audit Committee on any matter
AUDITORS’ REPORT relating to finance and management including the audit report would be binding on
The Auditors’ Report is unqualified. The notes to the Accounts referred to in the Auditors Report the Board; and
are self explanatory and therefore do not call for any further clarifications under Section 217(3) of h) based on the above and the Internal Audit System, the Audit Committee, the Board
the Companies Act, 1956. opines that the Company has internal control system commensurate with the size of
the Company and the nature of its business.
AUDITORS
ACKNOWLEDGEMENT
M/s. Khandelwal Jain & Co., Chartered Accountants, Mumbai and M/s. Kadam & Co., Chartered
Accountants, Ahmednagar, Statutory Auditors of the Company hold office until the conclusion The directors would like to express their grateful appreciation for the assistance and co-
of the ensuing Annual General Meeting. The Company has received certificates from these operation received from the Financial Institutions, Banks and Government Authorities.
Statutory Auditors to the effect that their re-appointment, if made, would be within the prescribed The directors are happy to place on record their gratitude to the employees at all levels for
limit under Section 224(1-B) of the Companies Act, 1956. their commitment and dedicated efforts.
The Board recommends their re-appointment. The directors are also thankful to the shareholders for their continued support to the
Company.
CORPORATE GOVERNANCE
For and on Behalf of the Board of Directors
As required under clause 49 of the Listing Agreement with the Stock Exchanges, Corporate V.N.DHOOT
Governance and Management Discussion and Analysis Report form part of this Annual Report.
The Company is in full compliance with the requirements and disclosures that have to be Chairman & Managing Director
made in this regard. A certificate from the Statutory Auditors of the Company confirming Place: Mumbai
compliance of the Corporate Governance is appended to the Report on Corporate Governance. Date: February 25, 2008

ANNEXURE TO DIRECTORS’ REPORT

STATEMENT OF PARTICULARS OF EMPLOYEES PURSUANT TO THE PROVISIONS OF SECTION 217(2A) OF THE COMPANIES ACT, 1956, READ WITH THE COMPANIES (PARTICULARS
OF EMPLOYEES) RULES, 1975 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 30TH SEPTEMBER, 2007
Details of employees drawing remuneration above Rs.2 lacs p.m.
Name of employee Designation Remuneration Qualification Age Experience Date of Name of the Position Held
Commencement Last Employer
of Employment
Anil Kumar Modani Vice President 2,584,008 B.Com,CA & CS 44 24 Years 16.11.1989 Shree Digvijay Cement Finance Executive
Co.Ltd.
Arvind Bali Vice President 2,584,008 B.Sc.Engg. (Mech.) & 47 25 Years 01.02.1994 M/S Greaves Cotton & Area Sales Manager
M.B.A. Co.Ltd.
Rahul Sethi Vice President 4,894,441 B. Com. 56 33 Years 01.02.1987 Gedor Ltd. Commercial Manager
Subhash Nabar Joint President 3,653,140 BE (Mechanical) 60 36 Years 01.07.1997 Orson Electronics Ltd. Senior Manager
Arun Kumar Dashora Vice President 2,796,426 BE (Electronics) 54 28 Years 16.05.1990 Riico Ltd. Manager
Nitin Shewale General Manager 2,650,052 BE ( Electronics) 43 20 Years 14.01.1989 Nil Nil
Ajay Bajaj Vice President 5,000,000 B SC. 44 20 Years 16.06.2007 Lg Electronics India Ltd. Dy.General Manager
Ashok V.Patil Vice President 2,811,978 M.A.,BBA 55 25 Years 21.08.2006 EKL Appliances Ltd. Associate Vice Precident
Sunil Tandon Group Head 3,556,284 M.Sc.,D.B.M,I.C.S.E,I.SC 47 22 Years 01.10.1999 DHL Worldwide Express Regional Manager
Pawan Kalra Joint President 4,978,200 B. Com. 39 21 Years 12.12.2001 Baron Int. Ltd. General Manager
Sunil Mehta Joint President 5,804,208 M.A.,PGDBM 57 27 Years 20.02.2001 Bpl Ltd. Project Regional Head
Shekhar Jyoti Vice President 3,480,000 B. Com., M.B.A. 45 22 Years 22.01.1986 Macotax Consultants General Manager
Pvt.Ltd.
Anuj Jain Associate Vice President 3,100,092 B. Com., M.B.A. 39 18 Years 07.09.2005 Mirc Electronics Ltd. Regional Buisness
Manager
N.S. Satish Associate Vice President 3,900,108 M.B.A.-MARKETING 39 14 Years 17.12.2007 Mirc Electronics Ltd. National Head

a) Remuneration includes Basic Salary, Ex-Gratia, H.R.A., Mktg. Allowance, Special Allowance, C.A., L.T.A., Leave Encashment, Medical Reimbursement, Contribution to Provident Fund.
b) The Employees are in whole time employment of the Company and the employment is contractual in nature.
c) None of the employees listed above is a relative of any Director of the Company.
Place : Mumbai
Date : February 25, 2008

5
 VIDEOCON INDUSTRIES LIMITED
CORPORATE GOVERNANCE
COMPANY’S PHILOSPHY ON CORPORATE GOVERNANCE The Board comprises of eminent persons having versatile experiences in the field of
marketing, finance, technical and administration.
Corporate Governance is all about commitment to values and ethical business conduct. It 2. Board/Committee Meetings and Procedures:
is all about how an organization is managed. The Company believes that sound Corporate The Company is in substantial compliance with the secretarial standards governing
Governance is critical to enhance and retain investor’s trust. board meetings and also general meetings as set out in Secretarial Standards 1 and
The Company’s philosophy on Corporate Governance is based on: 2 issued by the Institute of Company Secretaries of India. The information furnished
1. Transparency & maintaining high disclosure levels: to Board Members and Procedure is as set out hereunder:
To maintain the highest standards of transparency in all aspects of our interactions a. The Company has defined guidelines for the meetings of the Board of Directors
and dealings and to ensure timely dissemination of all price sensitive information and Committees thereof. These guidelines seek to systematize the decision
and matters of interest to our stakeholders. making process at the meetings of Board/Committees, in an informed and
2. Accountability: efficient manner.
To demonstrate highest levels of personal responsibility and continually affirm that b. All Board/Committee Members are given notice of the meetings in advance.
employees of the Company are responsible to themselves for the pursuit of excellence. The meetings are governed by structured agenda. The agenda alongwith the
3. Ethical conduct: explanatory notes are distributed well in advance.
To conduct the affairs of the Company in an ethical manner. c. The Members have unqualified access to all information available with the
4. Compliance with the laws in all the Countries in which the Company operate: Company. The information generally provided to the Members inter-alia include(s):
To comply with all the laws and regulations as applicable to the Company.  Annual operating plans and budgets;
5. Stakeholders’ Interest:  Quarterly and financial results;
To promote the interests of all the stakeholders including customers, shareholders,  Minutes of the meeting of Audit and other Committees to the Board;
employees, lenders, vendors and the community. The Company relentlessly endeavors Notice of Interest;
to enhance the shareholder wealth while sparing no effort to deliver long term value  Material important litigations, show cause, demand, prosecution and
to all the stakeholders. penalty notices, if any;
The objective is to institutionalize Corporate Governance practices that go beyond adherence  Sale of material nature of investments, subsidiaries and assets, which
to the extant regulatory framework. are not in the normal course of business;
The Company is in compliance with all the requirements of the code of Corporate Governance,  Establishment, operations and Set up of Joint Venture, Subsidiary or
enshrined in Clause 49 of the Listing Agreement. collaboration etc.,
 Divestment of Joint Ventures, Subsidiaries;
1. The composition of the Board of Directors as on September 30, 2007 was as under:
 Acquisitions/Amalgamation etc.,;
Category Directors No. of  Minutes of the Board Meeting, Annual General Meetings of Subsidiary
Directors Companies and significant transactions if any; and
Promoter - Executive Director Mr. Venugopal N. Dhoot 2  Related Party Transactions
(Chairman & Managing Director) d. Minutes of the proceedings of each Board/Committee meetings are recorded.
Mr. Pradipkumar N. Dhoot Draft minutes are circulated amongst all members for their comments. The
(Whole Time Director) minutes of the proceedings of the meetings are entered in the minutes book.
Non Executive - Mr. Kuldeep Drabu 3 e. The guidelines for the Board/Committee meetings facilitate an effective post
Non Independent Director Mr. Didier Trutt meeting follow-up, review and reporting process for the actions taken on
Mr. Johan Fant decisions of the Board and Committees.
f. The Board periodically reviews the compliance reports to ensure adherence to
Independent Mr. S. Padmanabhan 7
all applicable provisions of law, rules and guidelines.
Mr. Satya Pal Talwar
Mr. Arun Laxman Bongirwar g. The Company has laid down code of conduct which binds all the Board members
Maj. Gen. S. C. N. Jatar and senior management of the Company. A declaration by the Chairman and
Mr. Karun Chandra Srivastava Managing Director to this effect is appended to this report.
Mr. Ajay Saraf 3. Board Meetings and Attendance:
(Nominee of ICICI Bank Ltd) 16 Board Meetings were held during the year 2006 –07 on the following dates:
Mr. B. Ravindranath 19th October 2006, 31st October 2006, 21st November 2006, 28th December 2006,
(Nominee of IDBI Limited) 31st January 2007, 27th April 2007, 04th May 2007, 29th May 2007, 23rd June
2007, 06th July 2007, 11th July 2007, 20th July 2007, 31st July 2007, 11th August
2007, 29th August 2007 and 17th September 2007.
Details of number of Board meetings held during the year, number of meeting(s) attended by each director, attendance of directors at last Annual General Meeting, number of other
directorship/committee membership held by each of them are as hereunder:
Sl. No. Name of Director Whether attended Attendance in Other Board
AGM held on Board Meetings
30.03. 2007 held during the year/tenure
Total Attended Directorship** Committee Committee
Chairmanship*** Membership***
1 Mr. Venugopal N. Dhoot No 16 15 14 1 1
2. Mr. Pradipkumar N. Dhoot Yes 16 12* 14 Nil 2
3 Mr. Sanjiv K. Shelgikar+ No 5 4 1 Nil Nil
4 Mr. Kuldeep Drabu No 16 3 3 1 1
5 Mr. S. Padmanabhan No 16 11 14 Nil 8
6 Maj. Gen. S. C. N. Jatar No 16 5 1 Nil 1
7 Mr. Satya Pal Talwar Yes 16 11 10 2 6
8. Mr. Arun Laxman Bongirwar No 16 8* 3 Nil 1
9 Mr. Ajay Saraf No 16 3 3 Nil 3
10 Mr. Didier Trutt No 16 4* Nil Nil Nil
11 Mr. Johan Fant# No 11 2 Nil Nil Nil
12 Mr. B. Ravindranath No 16 4 1 Nil Nil
13 Mr. Claes Johan Bygge# N.A 5 1 Nil Nil Nil
14 Mr. Karun Chandra Srivastava@ N.A 11 1 1 Nil Nil

6
 ANNUAL REPORT 2006-07

# Mr. Johan Fant was nominated by AB Electrolux (Publ) in substitution of Mr. Claes Johan Bygge. On January 31, 2007 the Board took on record the withdrawal of nomination of Mr.
Claes Johan Bygge and nomination of Mr. Johan Fant.
+ Mr. Sanjiv Krishnaji Shelgikar resigned from the Office of the Board of Directors of the Company. His resignation was accepted on April 9, 2007.
@ Mr. Karun Chandra Srivastava was appointed as an additional director on April 9, 2007.
* Includes meeting(s) participated through audio conferencing.
** Directorship held by directors as above, do not include any alternate directorships if held, directorships in Foreign Companies, Section 25 Companies and Private Limited Companies.
*** As per Clause 49 of the Listing Agreement, Membership/Chairmanships of only the Audit Committee and Shareholder/Investors’ Grievance Committee of Public Limited Companies
have been considered.
4. Brief Details of Directors seeking appointment/re-appointment: i. Discussion with external auditors before the audit commences on nature and scope
The brief details of directors retiring by rotation and seeking re-appointment and of audit as well as have post-audit discussion to ascertain any area of concern.
persons seeking appointment u/s. 257 of the Companies Act, 1956, is appended to j. Reviewing the company’s financial and risk management policies.
the Notice convening the Nineteenth Annual General Meeting. k. To look into the reasons for substantial defaults, if any, in the payment to the
BOARD COMMITTEES depositors, debenture holders, shareholders (in case of non-payment of
declared dividends) and creditors.
The Board has constituted three committees:
l. Financial Statements and Investments made by Subsidiaries.
a. Audit Committee.
m. To review the functioning of Whistle Blower Mechanism, if any.
b. Shareholders/Investors’ Grievance Committee.
The Audit Committee also reviews:
c. Remuneration Committee.
 Management discussion and analysis of financial conditions and results of
1. AUDIT COMMITTEE: operations.
1.1 The Composition of Audit Committee as on September 30, 2007 was as under:  Statement of significant related party transactions, if any.
Name of the Member Category  Management Letters/Letters of internal control weaknesses issued by the
Mr. Satya Pal Talwar - Chairman Independent Statutory Auditors.
Mr. Arun Laxman Bongirwar Independent  Internal Audit Reports relating to internal control weaknesses, and
Maj. Gen. S. C. N. Jatar Independent  The appointment, removal and terms of remuneration of the Chief Internal
Auditor.
The Audit Committee comprises of independent directors and financial literate persons
1.3 Meetings and Attendance:
having vast experience in the area of finance and accounts. The Chairman of the
Audit Committee is a person with financial expertise. During the financial year under consideration, four meetings of the Committee were
held on: October 31, 2006, January 31, 2007, April 27, 2007 and July 31, 2007.
1.2 Scope of Audit Committee:
Name of the Category Meetings Meetings
The terms of reference are broadly as under:
Member held during attended
a. Overall assessment of the Company’s financial reporting process and the the year
disclosure of its financial information to ensure that the financial statement is
correct, sufficient and credible.
Maj. Gen. S. C. N. Jatar Independent 4 4
b. Recommending the appointment of external auditor, fixation of audit fee and
Mr. Arun Laxman Bongirwar Independent 4 4*
also approval for payment for any other services rendered by the Auditors.
Mr. Satya Pal Talwar Independent 4 4
c. Reviewing with management the annual financial statements before submission
to the board, focusing primarily on; *One meeting participated through audio conferencing.
 Matters required to be included in the Director’s Responsibility Statement The Statutory Auditors, Cost Auditors and the Head of Internal Audit attended and
to be included in the Board’s report in terms of Clause (2AA) of section participated in the meetings, on invitation. The Company Secretary is the de-facto
217 of the Companies Act, 1956. Secretary of the Committee.
 Changes, if any, in accounting policies and practices. 2. REMUNERATION COMMITTEE:
 Major accounting entries based on exercise of judgment by management. 2.1 The Composition of Remuneration Committee as on 30th September 2007 was as
under:
 Observations if any, in draft audit report.
Name of the Member Category
 Significant changes/amendments, if any, arising out of audit.
Major Gen. S. C. N. Jatar - Chairman Independent
 The going concern assumption.
Mr. Satya Pal Talwar Independent
 Compliance with accounting standards.
Mr. Arun Laxman Bongirwar Independent
 Qualification in the draft audit report, if any
 Compliance with stock exchange and legal requirements concerning 2.2 Scope of Remuneration Committee:
financial statements. The following matters are referred to the Remuneration Committee:
 Any related party transactions i.e., transactions of the Company of  Fixing the remuneration payable to the Directors;
material nature, with promoters or the management, their subsidiaries
 Determining the remuneration policy of the Company; and
or relatives etc., that may have potential conflict with the interests of
Company at large.  Reviewing the performance of employees and their compensation.
d. Review of quarterly unaudited financial results before submission to the Auditors 2.3 Directors’ Remuneration:
and the Board. (a) The Promoter Directors, Executive Directors, Non Executive Non Independent
e. Reviewing with the management, external and internal auditors the adequacy Directors, Nominees of AB Electrolux (publ) and Thomson S.A are not paid
of internal control systems. any sitting fees. Mr. V. N. Dhoot and Mr. P. N. Dhoot appointed as Chairman &
Managing Director and Whole Time Director respectively are entitled for
f. Reviewing the adequacy of internal audit function, including the structure of
remuneration as per their terms of appointment, however, they are not drawing
the internal audit department, staffing and seniority of the official heading the
any remuneration.
department, reporting structure coverage and frequency of internal audit.
(b) The independent directors are paid only sitting fees for attending Board/
g. Discussion with internal auditors any significant findings and follow up there on.
Committee meetings. The details of payment of sitting fee during the year
h. Reviewing the findings, if any, of any internal investigations by the internal under review are as follows:
auditors into matters where there is suspected fraud or irregularity or a failure
of internal control systems of a material nature and reporting the matter to the
board.

7
 VIDEOCON INDUSTRIES LIMITED

Name of Director Sitting fee (Rs) 3.5 Demat/Remat of Shares:

Mr. S. Padmanabhan 2,60,000 Details of Shares Dematerialised/ Rematerialised during the year under review is
Major Gen. S. C. N. Jatar 2,10,000 given below:

Mr. Satya Pal Talwar 2,90,000 a Number of Demat Transfers approved 12,933

Mr. Arun Laxman Bongirwar 2,30,000 b Number of Sub-committee Meetings held 34

Mr. Ajay Saraf (favouring:ICICI Limited) 60,000 c Number of Shares Dematerialised 180,626

Mr. B. Ravindranath (favouring: IDBI Limited) 80,000 d Percentage of Shares Dematerialised 0.08

Mr. Karun Chandra Srivastava 50,000 e Number of Rematerialisation requests approved 15

2.4 Meetings and Attendance, in Remuneration Committee: f Number of Shares Rematerialised 530

During the year under review, three meeting of remuneration committee were held 3.6 Details of complaints received and redressed during the year 2006 – 07:
on November 6, 2006, April 3, 2007 and August 3, 2007. Sl. Particulars Received Redressed Pending
Name of the Member Meetings held Meetings attended No. as on
30.09.2007
Maj. Gen. S. C. N. Jatar 3 3
a Non receipt of refund orders - - -
Mr. Satya Pal Talwar 3 3
b Non receipt of div/int/red warrants 510 510 -
Mr. Arun Laxman Bongirwar 3 3
c Non receipt of share certificates 2,014 2,014 -
2.5 Stock Options:
d Others 86 86 -
The Company has not issued any stock options.
Total 2,610 2,610 -
3. SHAREHOLDERS/INVESTORS’ GRIEVANCE COMMITTEE:
Note: Representatives of the company are in constant touch with MCS Limited, Share
3.1 The Composition of Shareholders/Investors’ Grievance Committee as on September Transfer Agents of the Company, and review periodically the outstanding complaints.
30, 2007 was as under:
Name of the Member Category GENERAL MEETING(S)

Maj. Gen. S. C. N. Jatar - Chairman Independent 1) Details of location, time and date of last three AGMs:
Mr. S. Padmanabhan Independent AGM AGM Date Location Time No of Special
Resolutions
Mr. Karun Chandra Srivastava Independent
Passed
Mr. Sanjiv Krishnaji Shelgikar ceased to be member of shareholders/investors’ 16th AGM 31.03.2005 Auto Cars Compound, 9.30 A.M Nil
grievance committee with effect from April 9, 2007 and Mr. Karun Chandra Srivastava Adalat Road, Aurangabad
was appointed as a member of the Committee on the same date.
17th AGM 31.03.2006 Auto Cars Compound, 9.30 A.M 3
The committee met on November 6, 2006, January 30, 2007, April 30, 2007 and Adalat Road, Aurangabad
August 3, 2007. Details of attendance is as under:
18th AGM 30.03.2007 Auto Cars Compound, 9.30 A.M Nil
Name of the Member Meetings held Meetings attended Adalat Road, Aurangabad
Maj. Gen. S. C. N. Jatar 4 4 2) Postal Ballot:
Mr. S. Padmanabhan 4 4 During the year under review and after the year, following special resolution(s) were
Mr. Karun Chandra Srivastava 2 1 transacted through Postal Ballot:
Mr. Sanjiv Krishnaji Shelgikar 2 2 1. To shift the Registered Office of the Company from Auto Cars Compound,
Adalat Road, Aurangabad – 431005 to 14 K.M. Stone, Aurangabad – Paithan
3.2 Scope of Shareholders/Investors’ grievance Committee:
Road, Village Chittegaon, Taluka-Paithan, Aurangabad – 431105.Maharashtra.
The Committee administers the following activities:
2. To alter the Main Object Clause of Memorandum of Association of the Company
 Transfer of Shares. by inserting additional clause(s) relating to:
 Transmission of shares.
a. carrying on business of generation and supply of Power; and
 Issue of Duplicate Share Certificates.
 Change of Status. b. carrying on business of minerals and fuels and source of minerals and
 Change of Name. fuel, including mining block or mining rights for mining of minerals,
 Transposition of Shares. including coal or other substance.
 Sub-division of Shares. 3. To alter the Main Object Clause of Memorandum of Association of the Company
 Consolidation of Folios. by inserting additional clause(s) relating to Telecommunications.
 Shareholders requests for Dematerialisation / Rematerialisation of shares, and
In terms of the provisions of Rule 5(b) of The Companies (Passing of the Resolution
 Allotment of Equity Shares.
by Postal Ballot) Rules 2001, Mr. Sheetal Kumar Dak, Practicing Company Secretary,
The Board has delegated the power of Share Transfer to Registrar & Share Transfer was appointed as Scrutinizer for conducting the Postal Ballot.
Agents, who process the transfers. The Committee also looks after Redressal of Investors’
Notice of the Postal Ballot along with Explanatory Statement, Postal Ballot Form and
Grievances and performance of the Registrar and Transfer Agents of the Company.
Self Addressed (postage to be paid by addressee) Envelope were sent to all the
In addition to the aforesaid, the committee closely monitors violations of the code of Shareholders of the Company and all other persons who were entitled to receive the
conduct for prevention of insider trading. same by under certificate of posting.
3.3 Compliance Officer: The Postal Ballot Forms received upto close of Working hours on Friday, August 10,
Mr. Vinod Kumar Bohra, Company Secretary is the Compliance Officer. 2007, considered for determining the votes for S.No.1 and 2, as aforesaid, and the
Postal Ballot Forms received upto close of Working hours on Wednesday, December
3.4 Share Transfer Details:
19, 2007, were considered for determining the Votes for S.No.3, hereinabove.
The number of Shares transferred during the year under review is given below:
The results of the Postal Ballot for S.No.1 & 2 were announced by the Company
Equity Secretary of the Company at Auto Cars Compound, Adalat Road, Aurangabad – 431005
a Number of transfers 5,110 on Saturday, August 11, 2007 and for S.No.3 was announced on December 26, 2007
and the said dates of declaration of result of Postal Ballot has been taken as date of
b Average Number of Transfers per month 426
passing of the Resolution.
c Number of Shares Transferred 55,409

8
 ANNUAL REPORT 2006-07

VOTING PATTERN OF POSTAL BALLOTS IS AS HEREUNDER:

Sr. No. Particulars Resolution declared as Passed Resolution declared as Passed Resolution declared as Passed
on 11th August 2007 on 11th August 2007 on 26th December 2007

Special Resolution in terms of the Special Resolution in terms of the Special Resolution in terms of the
provisions of Section 146 of the provisions of Section 17 of the provisions of Section 16, 17 of the
Companies Act, 1956 for shifting of the Companies Act, 1956 for alteration of Companies Act, 1956 for alteration of
Registered Office of the Company from Main Object Clause No ‘III A’ titled THE
Main Object Clause No ‘III A’ titled ‘THE
Auto Cars Compound, Adalat Road, MAIN OBJECTS OF THE COMPANY TO MAIN OBJECTS OF THE COMPANY TO
Aurangabad - 431005 to 14 K.M. Stone, BE PURSUED BY THE COMPANY ON ITS BE PURSUED BY THE COMPANY ON ITS
Aurangabad - Paithan Road, Village INCORPORATION’ of Memorandum of INCORPORATION’ of Memorandum of
Chittegaon, Taluka Paithan, Dist. Association of the Company by insertingAssociation of the Company by inserting
Aurangabad - 431105. Maharashtra. new Clause(s) No. 3 & 4 after existing new Clause 5 after existing Clause 4 to
Clause 2 to enable Company to: enable Company to carry on business
a. carry on business of generation and of Telecommunication.
supply of Power; and
b. carry on business of minerals and
fuels including coal and source of
minerals and fuel, including mining
block or mining rights for mining of
minerals, including coal or other
substance.
1 Total No. of PBF Received 2,726 2,726 3,005
2 No of Shares 145,251,255 145,251,255 101,095,458
3 % to total equity shares 65.6967 65.6967 45.2406
4 No. of Invalid/Rejected PBF 425 425 1,189
5 No of Shares 344 344 92,806
6 % to Total PBF Received 0.0002 0.0002 00.0918
7 Total No. of Valid PBF Received 2,301* 2,301** 1,816
8 Total No. of Shares 145,250,911* 145,250,911** 101,002,652
9 % to Total PBF Received 65.6965* 65.6965** 99.9082
10 Total No. of PBF in Favour 2,250 2,208 1,799
11 Total No. of Votes Casted in Favour 145,250,088 145,249,495 101,002,246
12 % of Shares to Receipt 99.9995 99.9991 99.9996
13 Total No. of PBF Against 46 79 17
14 Total No. of Votes Cased Against 753 1,342 406
15 % of Shares to Receipt 0.0005 0.0009 0.0004
* 5 Shareholders holding 70 Equity Shares have not exercised any voting option.
** 14 Shareholders holding 74 Equity Shares have not exercised any voting option.
At present, the Company is not proposing to conduct any resolution through postal ballot.

DISCLOSURES OTHER DISCLOSURES

1. Materially significant related party transactions i.e. transactions of the company of material The Company is in Compliance with the provisions of Clause 40A of the Listing Agreement.
nature, with its promoters, the directors or the management, their subsidiaries or relatives,
etc. that may have potential conflict with the interests of the company at large: MEANS OF COMMUNICATION
There are no transactions, which may have potential conflicts with the interests of (i) The Company regularly intimates its un-audited as well as audited financial results to
company at large. Transactions with related parties are disclosed in Note No. B-22 of the Stock Exchanges, as soon as these are taken on record/approved. These financial
Schedule 15 to the Accounts in the Annual Report. results are published in either of Free Press Journal (English) / Economic Times /
Times of India and Navshakti (Marathi) dailies having wide circulation. The results
2. Non-compliance by the company, penalties, strictures imposed on the Company are also displayed on the website of the Company www.videoconindustries.com.
by Stock Exchange or SEBI or any statutory authority, on any matter related to The official news releases and the presentations, if any, made from time to time to
capital markets, during the last three years: investors and financial analysts at investors’ meets are also displayed on the
NIL Company’s website. The results are not sent individually to the shareholders.
3. Whistle Blower Policy and affirmation that no personnel have been denied access (ii) Management Discussion and Analysis Report forms part of Directors’ Report.
to the audit committee:
GENERAL SHAREHOLDER INFORMATION
The Company has implemented Whistle Blower Policy and no personnel have been
denied access to the Audit Committee. 1. Annual General Meeting:
4. Details of Compliance with mandatory requirements and adoption of the non The 19th Annual General Meeting will be held on:
mandatory requirements of this clause: Day Monday
The Company has complied with mandatory requirements and adopted the following Date March 31, 2008
non mandatory requirements:
Time 09.30 A.M.
i) The Company has constituted a remuneration committee.
Venue Registered Office of the Company at 14 KM Stone, Aurangabad-Paithan
ii) Whistle Blower Policy. Road, Village Chittegaon, Taluka Paithan, Dist. Aurangabad. 431 105
(Maharashtra)

9
 VIDEOCON INDUSTRIES LIMITED

2. Financial Calendar for 2007-2008: 7. Registrar and Transfer Agent MCS Limited
Financial Year October 01, 2007 to September 30, 2008 Harmony, 1st Floor, Sector 1, Khanda,
New Panvel (West) 410 206
First Quarterly Result On or before January 31, 2008 Dist: Raigad (Maharashtra)
Second Quarterly Result On or before April 30, 2008 Tel : 022 – 27492003
Fax : 022- 27492005
Third Quarterly Result On or before July 31, 2008
8. Share Transfer System Applications for transfer of shares held in
Fourth Quarterly Result On or before October 31, 2008
physical form are received at the office of the
Annual General Meeting for Registrar and Share Transfer Agent of the
Financial year to be ended on Company. All valid transfers are processed
September 30, 2008 On or before March 31, 2009 within 15 days from the date of receipt.
3. Date of Book Closure: 9. a) Shareholding Pattern as on 30.09.2007 was as under:
Tuesday, March 18, 2008 to Monday, March 31, 2008 (both days inclusive) Category Category of Number Total Number Total shareholding
code Shareholder of Share Number of Shares as a Percentage
4. Dividend Payment Date: holder of in Demat of total Number
Shares Form of Shares
Dividend, if declared at Annual General Meeting, is proposed to be paid on or around
April 10, 2008. As a As a
per- per-
5. Listing on Stock Exchanges centage centage
of (A+B) of
The equity shares of your Company are listed on Bombay Stock Exchange Limited (A+B+C)
and National Stock Exchange of India Limited. The Company has paid Listing Fees (A) Share holding of Promoter
upto March 31, 2008. and Promoter Group

The names and addresses of the respective stock exchanges are given below: 1 Indian

Sl. No. Name and Address of the Stock Exchange Stock Code (a) Individuals / Hindu Undivided
family 13 1,619,838 1,292,950 0.87 0.73
1 Bombay Stock Exchange Limited (BSE) 511389
(b) Central Govt./ State Govt.(s)
Phiroze Jeejeebhoy Towers,
(c) Bodies Corporate 44 153,823,583 152,711,452 82.60 69.57
Dalal Street, Mumbai – 400 001.
Web: www.bseindia.com (d) Financial Institutions/ Banks - - - - -

2 National Stock Exchange of India Ltd (NSE) VIDEOIND (e) Any Other - - - - -
(specify)
Exchange Plaza, Bandra Kurla Complex,
Bandra East,Mumbai – 400 051 Sub - Total (A) (1) 57 155,443,421 154,004,402 83.47 70.31
Web: www.nseindia.com (2) Foreign
Global Depository Receipt of the Company are listed on: (a) Individuals (Non-Resident Individuals/ - - - - -
Foreign Individuals)
Luxembourg Stock Exchange
11, Avenue, de la, Porte Neuve L-2227, Luxembourg (b) Bodies Corporate - - - - -
(c) Institutions - - - - -
Foreign Currency Convertible Bonds of the Company are listed on:
The Stock Exchange of Singapore (d) Any Other (specify) - - - - -
2, Shanton Way, # 19-00, SGX Centre 1,
Sub - Total (A) (2) - - - - -
Singapore 068804
Total Share holding of Promoter
6. Market Price Data and Promoter Group
Average monthly High and Low prices at BSE and NSE are given below: (A) = (A)(1)+(A)(2) 57 155,443,421 154,004,402 83.47 70.31

Month BSE NSE (B) Public Share holding

(1) Institutions
High Low High Low
(a) Mutual Funds / UTI 21 36,571 35,228 0.02 0.02
October 2006 509.10 412.00 509.40 410.10
(b) Financial Institutions/Banks 36 304,403 291,166 0.16 0.14
November 2006 460.00 417.00 459.25 401.05
(c) Central Govt./ State Govt.(s) - - -
December 2006 462.85 410.05 462.90 401.30 (d) Venture Capital Funds - - -
January 2007 478.00 433.30 474.70 435.00 (e) Insurance Companies 5 5,600,352 5,599,752 3.01 2.53
February 2007 462.00 420.10 462.25 412.20 (f) Foreign Institutional Investors 95 13,467,563 12,706,367 7.23 6.09
March 2007 459.75 416.00 460.00 415.30 (g) Foreign Venture Capital Investors - - -

April 2007 472.00 392.00 499.00 393.30 (h) Any Other( specify) - - -

May 2007 503.00 402.10 505.00 405.00 Sub - Total (B) (1) 157 19,408,889 18,632,513 10.42 8.78

(2) Non- Institutions

June 2007 500.00 414.00 500.00 414.65
(a) Bodies Corporate 1,927 5,516,620 4,962,476 2.96 2.50
July 2007 427.00 369.10 428.00 350.55
(b) Individuals
August 2007 384.00 336.25 425.00 335.00
i. Indvidual Shareholders holding
September 2007 396.00 352.30 394.90 337.70 nominal share capital up to
Rs. 1 Lakh 342,862 4,685,290 2,998,613 2.52 2.12
VINL HIGH Vs SENSEX HIGH
ii. Above Rs 1 Lakh 19 1,171,618 1,171,618 0.63 0.53
600 20000
18000 (c) Any Other( specify)
VINL STOCK PRICES

500 16000
400 14000 Sub - Total (B) (2) 344,808 11,373,528 9,132,707 6.11 5.14
SENSEX

12000
300 10000 Total Public Share holding
8000
200 6000
B= (B)(1)+(B)(2) 344,965 30,782,417 27,765,220 16.53 13.92
100 4000 TOTAL (A) + (B) 345,022 186,225,838 181,769,622 100.00 84.23
2000
0 0 (C) Shares held by Custodians and
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
against which Depository Receipt
MONTHS
have been issued 2 34,867,863 34,862,403 *** 15.77
BSE VINL SENSEX
GRAND TOTAL (A)+(B)+(C) 345,024 221,093,701 216,632,025 *** 100.00

10
 ANNUAL REPORT 2006-07
b) Distribution of Shareholding as on 30.09.2007 is given below: COMPLIANCE CERTIFICATE OF THE AUDITORS
Share Holding of Number of % to Total No. of Shares Amount in Rs. % to Total
Nominal Value of Rs. Shareholders A certificate from the auditors of the Company regarding compliance of conditions of
Up to 5,000 344,002 99.7 4,096,711 40,967,110 1.85 Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached
5,001 to 10,000 472 0.14 353,958 3,539,580 0.16
to this report.
10,001 to 20,000 181 0.05 264,970 2,649,700 0.12
20,001 to 30,000 82 0.02 207,239 2,072,390 0.09
30,001 to 40,000 39 0.01 132,825 1,328,250 0.06
40,001 to 50,000 22 0.01 102,604 1,026,040 0.05
DECLARATION
50,001 to 1,00,000 49 0.01 353,812 3,538,120 0.16 The Board has laid down a code of conduct for all Board Members and Senior Management
1,00,001 and above 177 0.05 215,581,582 2,155,815,820 97.51 of the Company, which is posted on the Website of the Company. The Board Members
Total 345,024 100 221,093,701 2,210,937,010 100
and Senior Management have affirmed compliance with the code of conduct.

10. Dematerialization of Shares and liquidity: For VIDEOCON INDUSTRIES LIMITED

The Securities and Exchange Board of India (SEBI), through a notification has made
it mandatory that any delivery in the Company’s shares against stock exchange trades CHAIRMAN & MANAGING DIRECTOR
shall be in demat form. As on 30.09.2007, 216,632,025 equity shares (97.98% of
the total number of shares) have been dematerialized.
11. Outstanding GDRs/ ADRs/ Warrants or Conversion Instruments, Conversion date
and like impact on equity (30.09.2007):
As on 30th September 2007, 34,867,863 GDRs were outstanding. Each GDR
represents one equity share of the Company. CMD/CFO CERTIFICATION
During the financial year ended on 30th September 2006, the Company issued Foreign We, Chairman and Managing Director appointed in terms of the Companies Act, 1956
Currency Convertible Bonds in two tranches i.e., of US$ 90,000,000 Million and US$ and the Chief Financial Officer, certify to the Board that:
105,000,000. The details of Conversions and likely impact on the equity is tabulated
a) The Financial Statements and the Cash Flow Statements for the year have been
hereunder:
reviewed and to the best of our knowledge and belief are true and present a true and
1 Principal Value of FCCBs Issued US$90,000,000 US$105,000,000 fair view of the affairs of the Company.
2 Principal Value of FCCBs converted US$1,000,000 US$99,000 b) To the best of our knowledge and belief, no transactions entered are fraudulent,
into equity (from 01st October 2006 illegal or violate the Company’s Code of Conduct.
to 30th September 2007)
c) We accept the responsibility for establishing and maintaining internal controls,
3 Principal Value of Bonds US$89,000,000 US$104,901,000 evaluate the effectiveness, disclosing the deficiencies to the Auditors & the Audit
outstanding as at Committee and take steps or propose to take steps to rectify these deficiencies.
30th September 2007
d) We have indicated to the Auditors and the Audit Committee:
4 Underlying Equity Shares issued 98,408 9,044 i) Significant changes in Internal Control processes during the year,
pursuant to conversion of FCCBs ii) Significant changes in Accounting Policies; and
as referred in S.No. 2, hereinabove iii) Instances of significant fraud of which we have become aware.
5 Underlying Equity Shares which may 8,758,342 10,186,173
Chief Financial Officer Chairman and Managing Director
be issued upon conversion of FCCBs
as referred in S.No.3 hereinabove
12. Plant locations:
1 14 Km. Stone, Village Chittegaon, Taluka Paithan, Dist. Aurangabad. 431 105
Maharashtra COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE
2 Village Chavaj, Via Society Area, Taluka & Dist. Bharuch – 392 002.Gujarat To,
3 Plot No.10, Udyog Vihar Industrial Area, Gautam Budh Nagar, Greater Noida, The Members of
Uttar Pradesh
VIDEOCON INDUSTRIES LIMITED
4 Plot No. 28, Khasra No.293, Industrial Area,Selakul, Vikasnagar, Dehradun,
We have examined the compliance of conditions of Corporate Governance by Videocon Industries Limited,
Uttaranchal for the year ended on 30th September, 2007, as stipulated in Clause 49 of the Listing Agreement of the
5 Village Majara, Taluka Warora, District, Chandrapur, Maharashtra said Company with the Stock Exchanges.
6 Vigyan Nagar, RICO Industrial Area, Shahjanpur, District Alwar, Rajasthan The Compliance of Conditions of Corporate Governance is the responsibility of the Management. Our
7 A-32, Butibori Industrial Area, Village Ruikhiri, Nagpur examination was limited to a review of the procedures and implementations thereof adopted by the
Company for ensuring the compliance of the condition of the corporate governance as stipulated in the
said clause. It is neither an audit nor an expression of opinion on the financial statements of the Company.
13. Address for Correspondence:
In our opinion and to the best of our information and according to the explanations given to us and the
14 Km. Stone, Village Chittegaon, Taluka Paithan, representations made by the Directors and the management, we certify that the Company has complied
Dist. Aurangabad. 431 105 Maharashtra with the condition of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing
Agreement.
Tel : 02431 – 251501
Fax : 02431 – 251551 We further state that such compliance is neither an assurance as to the future viability of the Company
nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Email : secretarial@videoconmail.com Company.
The correspondence address for shareholders in respect of their queries is:
For KHANDELWAL JAIN & CO. For KADAM & CO.
MCS Limited Chartered Accountants Chartered Accountants
Harmony, 1st Floor, Sector 1, Khanda, New Panvel (West) 410 206 SHIVRATAN AGARWAL U. S. KADAM
Dist: Raigad (Maharashtra) Partner Partner
Membership No.104180 Membership No.31055
Tel : 022 – 27492003
Fax : 022- 27492005 Place: Mumbai
Date : February 25, 2008

11
 VIDEOCON INDUSTRIES LIMITED
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The management discussion and analysis report has been included in adherence to the spirit enunciated in
the code of Corporate Governance approved by the Securities and Exchange Board of India. The Management
presents herein the Industry Overview, Opportunities and Threats, Initiatives by the Company and overall
strategy of the Company and its outlook for the future. This outlook is based on assessment of the current
business environment it may vary due to future economic and other developments both in India and abroad.
Statement in this Management Discussion and Analysis of Financial Condition and Results of Operation of
the Company describing the Company’s objectives, expectations or predictions may be forward looking
within the meaning of applicable securities laws and regulations. Forward Looking statements are based
on certain assumptions and expectations of future events. Actual results could differ materially from those
expressed or implied. Important factors that could make a difference to the Company’s operation include
economic conditions affecting demand/supply and price conditions in the domestic and overseas markets
in which the Company operates, changes in the Government regulations, tax laws and other statutes and
other incidental factors. Further, the discussion following herein reflects the perceptions on major issues
as on date and the opinions expressed here are subject to change without notice. The Company undertakes
no obligation to publicly update or revise any of the opinions or forward-looking statements expressed in
this report, consequent to new information, future events, or otherwise.
INDUSTRY, STRUCTURE AND DEVELOPMENTS
Consumer Electronics & Home Appliances:
The Consumer electronics products and household appliances industry can be broadly categorized into
two segments:
1. Consumer Electronics Products; and
2. House Hold Appliances.
The consumer electronic products segment includes products such as Televisions, video products and
home entertainment products and the household appliances segment includes products such as
refrigerators, washing machines, air conditioners, microwave ovens, vacuum cleaners, dishwashers and
small appliances such as irons, heaters, vacuum cleaners, fans, mixers and water purifiers.
Colour Televisions
Colour Televisions is the dominant product in the consumer electronics and house hold segment, both by
volume and by value. As per the Company’s estimates for year ended March 2007, colour television sales
accounted for an estimated Rs.110 billion with a growth of 12.7%, representing approximately 53% of the
total turnover of the consumer electronics products and household appliances market.
Market demand for colour televisions have increased by around 12.7% in the year ending March, 2007.
With the upgradation in technology, there has been a shift from conventional TVs to Flat TVs and from Flat
TVs to Slim and Ultra Slim TVs. The Flat TV segment constituted 55% of the overall CTV market. It has
grown from 5 million units to 6.6 million units in the year ended March 2007, an increase of 30%. The
conventional segment has de-grown by 5% over the previous year. The growth in demand in Flat TVs has
been driven by a reduction in the price differential between conventional color television and flat color
television, and increasing consumer preference for flat color televisions.
With the technology changing day by day, the new trends in television industry is Flat Panel Display (FPD).
Undergoing metamorphosis, FPD market is turning from low volume, high pricing and low consumer awareness
to affordable pricing and desire for enhanced technology and cinematic viewing experience. It comprises of
liquid Crystal Display (LCD) TV and Plasma TV. The market for FPD in 2006-07 has grown at an exponential
rate of 430%. LCD TVs currently constitute the bulk of high-end TV sales.
Sales of FPD are no loner solely restricted to the metros, consumers in tier-2 cities seem to be as evolved
in lifestyle needs. Higher disposable incomes, greater aspirations, and a younger demographic consumer,
have increased demands for the latest technology high-end television market. Plasma TV is finding more
popularity among corporate buyers, shopping malls and airports, where there is public viewing. The leading
players in CTV market are Videocon, Sansui, LG, Samsung, Akai and Onida.
The key growth drivers of CTV business in India are likely to be:
 Electrification in rural India and increasing aspirations of people in rural India.
 Low penetration levels- The penetration level of CRT TVs in India is more lower when compared to
other countries, worldwide.
 Multiple TV demand from Middle and high income categories.
 Price erosion and easy and inexpensive finance availability.
 Sports events/festivals.
 Product innovations.
Refrigerators
It is expected that for the year ended March 2007, refrigerator sales accounted for an estimated Rs. 30
billion on sales with a growth of approximately 5.4%. The leading brands in the refrigerator market are
Videocon, LG, Whirlpool, Electrolux, Samsung, Kelvinator, and Godrej.
Sales of Frost Free Refrigerators grew by approximately 13% for period ended March 2007 where as the
direct cool segment grew by approximately 3.7 % in the same period. In direct cool refrigerator, 165 – 200
litres segment is the major contributor where as in frost free refrigerator, 201 – 250 liter segment is the
major contributor. The Frost Free segment accounts for more than 30% of the total refrigerator market.
Air Conditioners
For the year ended March 2007, air conditioners sales are estimated at Rs. 25 Billion, representing growth
of 24% over the previous year. The leading brands in the AC market are LG, Samsung, Videocon, Onida,
Voltas, Electrolux and Godrej.
According to industry sources, the demand for split air conditioners has increased considerably in the year
ended March 2007, due to a reduction in the price differential between split and window air conditioners,
increased affordability and because split air conditioners require less space, have low noise levels and is
better looking than window air conditioners. With the growing number of three-four rooms apartment in
Tier I, II and III cities, a new trend has started emerging whereby customers, instead of one AC, have
religiously started buying two to three ACs.
12
The Company has identified the air conditioner market as a high growth market. As consumers become
more affluent, they are likely to increase the number of air conditioners in their homes. The Company
expects a further shift in demand towards higher value split air conditioners. At present, the penetration
level in the domestic market for air conditioners in India is extremely low.
Increasing affordability, acceptance of air conditioners as a utility product rather than a luxury item, easy
availability of finance schemes, and historic low penetration. The institutional sale is also contributing to
the growth of this category. In air conditioners, per Capita consumption is higher for this category as it is
used by the same individual in different parts of his home and workplace.
Washing Machines
Washing machine sales accounted for the year ended March 2007 are estimated at Rs. 16.4 billion
representing growth of 12.5% over the previous year. The leading brands in the washing machine market
are Videocon, LG, Whirlpool, Electrolux, Samsung and Onida.
The semi automatic segment has been key contributor with 70% share to this category. The fully automatic
segment has grown at a rate of 34%. Repeat buyers upgrading to Fully Automatic. Also, the shift is from semi
automatic to fully automatic due to diminishing price differential. Although demand for washing machines has
exhibited very low price elasticity, intense competition between players has motivated moderate price cuts in
recent years. Price cuts in other market segments have also led to reduction in prices in this segment. Stiff
competition has resulted in technologically superior products at competitive prices. The industry is also moving
beyond the concept of clean wash to the concept of pure, bacteria free, odour free wash.
Growth in the demand for washing machines in India continues to be limited by a public perception that
they are of low utility because of (i) the availability of cheap manual labour and (ii) intermittent water and
power supply in many parts of the country.
Microwave oven
Microwave oven sales for year ended March 2007 are estimated at Rs. 5.9 billion resulting the growth of
48.5% over the previous year. The leading brands in the Microwave Oven market are LG, Samsung,
Videocon, Kenstar, Electrolux, IFB, and Kelvinator.
The grill and convection segment contributed 41% and 31% respectively. With the solo category growing
at a rate of 22 per cent, grill growing at 36 per cent and convection model growing at 71 per cent over the
last year. Microwave oven segment is becoming aesthetic driven. Players are differentiating themselves
on sleek design which can be placed in small countertops. The companies are using health as a diffentiator
to sell their product range and this has found great acceptance among Indian consumers.
Low penetration level, changing life style is creating a set of opportunity for the market which will lead to
high growth in this category.
Lack of time, coupled with changing eating habits is creating another set of opportunity.
Glass shells
Glass Shells (glass panels and funnels), account for nearly 60% of CRT costs. The manufacturing process for
glass shells is capital-intensive. Videocon is one of the major players in the glass shell business in India.
One of the significant developments in the industry has been the enforcement of energy efficiency regulation
laid by Bureau of Energy Efficiency, Ministry of Power.
INDIAN OIL AND GAS INDUSTRY
Per capita consumption of primary energy and hydrocarbons of India is among the lowest in the world.
Demand for crude oil is derived from the demand for petroleum products, which is largely determined by
the growth in the economy. High speed diesel oil, motorspirit, liquefied petroleum gas, naphtha and fuel
oil account for the bulk of the consumption of petroleum products in India. While domestic production of
crude oil and natural gas has increased over the past decade, it has not kept pace with growth in domestic
consumption over the same period. As the gap between demand and production continues to widen, India
has increasingly become a significant net importer of crude oil. It is against this background that the
Government of India has stressed the importance of exploration of hydrocarbons in India.
The Government of India, under the National Common Minimum Programme, has placed greater emphasis
on increasing indigenous production. The government is planning to increase indigenous production through
the accelerated domestic exploration of oil and gas, through improved oil recovery from existing fields and
diversification of the fuel base with an increased reliance on gas. Natural gas has gained tremendous importance,
both as a fuel and a feedstock over the past 20 years. Natural gas is used as a feedstock in fertilizer and
petrochemical units. It is also used as a fuel in power plants using combined cycle technology, and in other
industries such as glass, ceramics, sponge iron and tea estates.
India today remains one of the lesser explored regions in the world with well density per thousand sq. km.
being among the lowest.
OPPORTUNITIES AND THREATS
STRENGTHS
 There are opportunities to further expand manufacturing bases, both internationally and domestically.
 There are opportunities to expand the range of Components so as to reduce cost of products.
 There are opportunities to increase brand portfolio by introducing new brands and/or by acquiring
the existing premium brands from the market.
 There are opportunities to increase the sales of different range of products manufactured by Company
by way of association/tie-up with retail outlets; Super Market; Hyper Marts etc.,
 There are opportunities to increase penetration in the Indian consumer electronic products and
household appliances market. This can be achieved through growth of customer base and enlargement
of the Company’s product portfolio.
 There are opportunities to improve level of service to network of dealers and distributors for example
by providing more frequent deliveries in order to reduce the dealers inventory levels and therefore
costs. The Large scale operations can improve the margins of the Company.
 ANNUAL REPORT 2006-07
 There are opportunities to outperform in Domestic Market with Innovative Products such as Slim
Televisions. LCDs & PDPs etc.,
 There is scope to identify additional oil and glass blocks that are suitable for exploration and have
potential for production. The Company plans to bid for the rights to exploit the hydrocarbons blocks,
which shall be open for bidding in future.
THREATS:
 The Cost of marketing, advertising and after sale services are increasing tremendously.
 Due to stiff competition, prices are continuously reducing. If the costs are not controlled then it may
prove to be a threat and margins will be under pressure.
 The Cost and interest rates continue to be the key issues that are likely to shape the growth rates of
the Industry. Any increase in the interest will have impact on the profitability of the Company.
SEGMENT -WISE PERFORMANCE
The Company has prepared the consolidated Financial Statements as per Accounting Standard 21
“Consolidated Financial Statements”, Accounting Standard 27 “Financial Reporting of Interests in Joint
Venture”, Accounting Standard 23 “Accounting for investments in Associates in Consolidated Financial
Statements” and accordingly the segment information as per Accounting Stantdard-17 “Segment Reporting”
has been presented in consolidated financial statements and accordingly the segment wise turnover are as
under:
(Rs. Millions)
Segment Current year ended Previous year ended
30.09.2007 30.09.2006
Consumer Electronics and Home Appliances 14,101.91 14,394.14
Crude Oil and Natural Gas 111,869.39 115,239.57
Total 125,971.30 129,633.71
OUTLOOK
 The consumer electronics sector is undergoing a major transformation. The analog technologies are
giving way to digital technologies. Digitalization in turn is leading to convergence of consumer, computer,
communication, broadcast cable technologies and the contents. A digital signal can be far more easily
processed than an analog one. The Company is planning to tap this.
 The Company has adopted the best and the most sophisticated technology to suit Indian needs. The
Company as a part of global diversification has been planning international forays in the same industry
and has successfully forayed into international market either directly or indirectly.
 The Company as a part of reducing manufacturing cost of products has explored the possibility of
manufacturing various components at the in-house facility by setting up standalone facilities.
RISKS AND CONCERNS
Risks associated with Consumer Electronics & Home Appliances Business
 There is risk of non adjustment of product mix in line with market demand or keep pace with
technological changes.
 There is risk of drop in CRT prices due to International Competition.
 There is risk of non adoption / availability of Technology.
 There is risk of inability to keep pace with the changes in product design and features.
 There is risk of slowdown in the overall Indian and Global economy thereby effecting demand for the
Company’s products.
Risks associated with the Oil and Gas Business
 There is risk of variation in the prices of oil and gas.
 There is risk of exploration blocks not yielding the expected results.
 There is risk on account of natural disasters or which are beyond control such as labor unrests,
earthquakes, flooding and extended interruptions due to hazardous weather conditions, explosions
and other accidents.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an internal control system commensurate with its size and nature of business, which
provides for:
 Transactions being accurately recorded, cross verified and promptly reported.
 Adherence to applicable accounting standards and policies.
 Information technology system which include controls for facilitating the above.
 Efficient use and safeguarding of resources.
 Accurate recording and custody of assets.
 Compliance with applicable statutes, policies procedures, listing requirements, management
guidelines and circulars in all the Countries where the Company operates.
Internal checks and controls are exercised by strictly adhering to the various procedures laid at the time of
delegation of authorities and other Procedures. The delegation clearly indicates the powers along with the
monetary limits, wherever necessary, that can be exercised by various levels of the Managers in the Company.
13
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Comparative Performance of Company on Stand alone Basis
Fixed Assets
The Gross Block of Company as on 30th September, 2007 was Rs. 86,310.84 million which includes
revaluation of assets to the extent of Rs. 9,244.75 million. The Net Block as on that date was Rs. 53,194.72
million. During the year, there were additions to gross block of fixed assets to the extent of Rs. 8,948.74
million.
Sales
During the year under consideration, the Company achieved a turnover of Rs. 87,102.58 million as against
Rs. 75,803.32 million during the previous year ended on 30th September 2006, thereby recording an
increase of 14.91% in turnover as compared to previous year. Turnover comprised of sales from the
‘Consumer Electronics and Home Appliances’ segment to the extent of Rs. 73,000.67 million as against
Rs. 61,409.18 million for the previous year, Oil & Gas segment to the extent of Rs. 14,101.91 million as
against Rs. 14,394.14 million for the previous year ended on 30th September, 2006.
Other Income
Other income for the year was Rs. 1,663.62 million as against Rs. 1,654.44 million during the previous
year ended on 30th September, 2006, representing an increase of 0.55% as compared to previous year.
Other income comprises of Income from Investment & Securities Division, Exchange Rate Fluctuation,
Insurance claim received, Interest and Miscellaneous Income.
Expenditure
Cost of Goods Consumed
Cost of Goods Consumed stood at Rs. 48,981.34 million as against Rs. 41,627.44 million during the
previous year ended on 30th September 2006.
Production & Exploration Expenses for Oil & Gas
During the year under review the production and exploration expenses for oil and gas were Rs. 9,549.81
million as against Rs. 9,583.21 million during the previous year ended on 30th September, 2006 representing
a marginal decrease of 0.35% as compared to previous year.
Salaries, Wages and Employees Benefits
During the year under review the Salary and Wages stood at Rs. 1,053.48 million as against Rs. 946.96
million for the previous year ended on 30th September, 2006 representing an increase of 11.25% as
compared to previous year.
Manufacturing and Other Expenses
During the year under review the manufacturing and other expenses were Rs. 6,813.88 million as against
Rs. 6,934.07 million for the previous year ended on 30th September, 2006 representing decrease of
1.73% as compared to previous year.
Interest & Finance Charges
For the year ended 30th September 2007, Interest and Finance charges amounted to Rs. 3,106.51 million
as against Rs. 2,258.80 million for the previous year ended on 30th September, 2006 thereby recording an
increase of 37.53% compared to previous year. The increase is mainly on account of increase in interest
rate and increase in total Borrowings.
Depreciation
Net Depreciation (excluding depreciation on revalued assets) amounted to Rs. 4,183.88 million as against
Rs. 3,355.47 million for the previous year ended on 30th September, 2006 thereby recording an increase
of 24.69% as compared to previous year. The increase in depreciation is on account of additions of fixed
assets.
Profit Before Tax
As a result of the foregoing, the profit before tax was Rs. 10,828.96 million for the year ended 30th
September 2007 as against Rs. 9,136.66 million for the previous year ended on 30th September, 2006
there by recording an increase of 18.52% in profit before tax.
Provision for Taxation
Provision for Taxation includes Provision for Current Tax, Deferred Tax and Fringe Benefit Tax. During the
year under review, the Company has provided Rs. 1,232.70 million for Current Tax, Rs. 1,020.18 million
for Deferred Tax and Rs. 23.89 million for Fringe Benefit Tax as against Rs. 819.00 million for Current Tax,
Rs. 117.23 million for deferred tax and Rs. 15.41 million for Fringe Benefit Tax for the previous year ended
on 30th September, 2006.
Net Profit
Net Profit of the Company increased to Rs. 8,552.19 million from Rs. 8,185.02 million for the previous
year ended 30th September, 2006 representing an increase of 4.49% in Net profit.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING
NUMBER OF PEOPLE EMPLOYED
The Company continues to improve daily living and to create a workplace where every person can reach
his or her full potential. The work environment gives employees the freedom to make the most of them.
Learning and relevance are key principles at the Company. The Company believes in talent acquisition and
retention, to augment its plan of making its presence more prominent to global markets. The Company
has developed a HRD Plan with the parameters to achieve Excellent Results. The steps have been taken to
create a sense of belongingness in the minds of the employees, which in turn gives maximum contribution
per employee while gearing them to face the challenges in the competitive business environment and
achieve the desired goals.
The Company is poised to take on the challenges with its work force of around 8,500 employees/workers
in the business environment and march towards achieving its mission with success.
 VIDEOCON INDUSTRIES LIMITED

AUDITORS’ REPORT
To
The Members of
VIDEOCON INDUSTRIES LIMITED
1. We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES LIMITED, as at 30th September 2007, Profit and Loss Account and also the Cash Flow Statement of
the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003, issued by the Central Government 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 audit, we give in the Annexure hereto a statement on
the matters specified in Paragraphs 4 and 5 of the said Order.
4. Attention is invited to Note No. B-10 of Schedule 15 regarding incorporation of the Company’s share, in the operations of the joint venture based on the statements received
from the Operator. The Company has received from the Operator the audited financial statements for the period upto 31 st March 2007 and un-audited financial statements for
the period 1st April 2007 to 30th September 2007, on which we have placed reliance. We have also placed reliance on technical / commercial evaluation by the management
in respect of allocation of development cost to producing properties depletion of producing properties, on the basis of proved remaining reserves and liability for abandonment
costs.
5. 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 Auditor’s Reports have been forwarded to us and have been
appropriately dealt with.
c) The Balance Sheet, Profit and Loss account and the Cash Flow Statement dealt with by the report are in agreement with the books of account and with the audited returns
from the foreign branches.
d) In our opinion, the Balance Sheet, Profit and Loss Account, and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in
Section 211(3C) of the Companies Act, 1956.
e) According to the information and explanations given to us and on the basis of written representations received from the directors as on 30th September 2007 and taken
on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September 2007 from being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to explanations given to us, the said financial statements, read together with the significant accounting
policies, paragraph 4 above and notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give 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 September 2007;
(ii) In the case of the Profit and Loss Account, of the profit for the year ended on that date, and
(iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

For KHANDELWAL JAIN & CO. For KADAM & CO.

Chartered Accountants Chartered Accountants
SHIVRATAN AGARWAL U.S.KADAM
Partner Partner
Membership No.: 104180 Membership No.: 31055
Place : Mumbai
Date : 25th February, 2008

ANNEXURE REFERRED TO THE AUDITORS’ REPORT

Statement referred to in paragraph 3 of the Auditors’ Report of even date to the Members of VIDEOCON INDUSTRIES LIMITED on the financial statements for the year ended 30th
September 2007.
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As per the information and explanations given to us, physical verification of fixed assets, other than those under joint venture, has been carried out in terms of the
phased programme of verification adopted by the Company and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification
is reasonable, having regard to the size of the Company and nature of its business.
(c) In our opinion, during the year the Company has not disposed off a substantial part of fixed assets.
(ii) (a) As per the information furnished, the inventories (excluding stock of crude oil lying at extraction site with the Operator) have been physically verified during the year
by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.
(b) In our opinion and according to the information and explanations given to us, procedures of physical verification of inventory followed by the management, are
reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. As per the information and explanations given to us the discrepancies noticed on physical verification of
stocks were not material in relation to the operations of the Company and the same have been properly dealt with in the books of 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, firms or other parties
covered in the register maintained under Section 301 of the Companies Act, 1956.
(b) As the Company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under
Section 301 of the Companies Act, 1956, sub-clauses (b), (c), (d), (f) and (g) of Clause (iii) of paragraph 4 of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and
the nature of its business with regard to purchases of inventory and fixed assets and for the sales of goods. During the course of our audit, we have not observed any
continuing failure to correct the major weakness in the internal controls 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 entered in the register
maintained under Section 301 of the Companies Act 1956 and exceeding the value of Rupees Five lakh, in respect of any party during the year, have been made at
prices which are reasonable having regard to prevailing market price at the relevant time.

14
 ANNUAL REPORT 2006-07
(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 made there under.
(vii) In our opinion, the Company has an internal audit system commensurate with its size and nature of its business.
(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 Company’s products. As per
the information and explanations provided to us, we are of the opinion that prima facie, 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, Investor Education and Protection Fund, Employees’ State Insurance, Income tax, Sales tax, Wealth tax, Service
tax, Custom duty, Excise duty, Cess and other material statutory dues wherever applicable. According to the information and explanations given to us, no undisputed
arrears of statutory dues were outstanding as on 30th September 2007 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 disputes, are given below:
S.No. Name of the Statute Nature of the Dues Amount Rs. in million Forum where dispute is pending
1. Customs Act, 1962 Customs Penalty 0.85 Commissioner
11.00 Supreme Court
Customs Duty 55.14 Asst. Commissioner
17.18 Deputy Commissioner
0.72 Commissioner
5.48 Commissioner (Appeals)
13.53 CESTAT
3.51 Supreme Court
2. Central Excise Act, 1944 Excise Penalty 0.01 Tribunal
2.70 Commissioner (Appeals)
Service Tax Demand 1.78 Joint Commissioner (P&V)
0.14 Asst. Commissioner
4.02 CEGAT
Excise Duty Demand 2.81 Asst. Commissioner
0.57 Addl. Commissioner
16.46 Dy. Commissioner
91.43 Commissioner
31.75 Commissioner (Appeals)
8.61 Tribunal
4.18 CESTAT
8.15 High Court
3. Central Sales Tax Act, 1956 and Sales Tax Demands 97.22 Asst. Commissioner
Sales Tax Acts of various states 11.90 Deputy Commissioner
28.69 Deputy Commissioner (Appeals)
14.21 Tribunal
18.97 High Court
4. Income Tax Act, 1961 Income Tax Demand 5.57 Income Tax Appellate Tribunal
5. Industrial Dispute Act Labour Cases & Other 4.72 Labour Court
6. Foreign Exchange Management Act Other 46.70 Supreme Court
(x) There are no accumulated losses as at 30th September 2007. The Company has not incurred any cash losses during the year covered by our audit and the immediately
preceding financial year.
(xi) Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues
to a financial institution, bank or to debenture holders during the year.
(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.
(xiii) In our opinion, the Company is not a Chit fund Company or nidhi/mutual benefit fund/society. Therefore the Clause (xiii) of paragraph 4 of the Order is not 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 those
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 banks or financial
institutions are, prima facie, not prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the term loans raised during the year 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 year 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 year. The Company has created security in respect of debentures issued in earlier years.
(xx) During the year, the Company has not raised any money by way of public issue. The Company has however issued 107,452 Equity Shares on conversion of 1,099 Foreign
Currency Convertible Bonds (FCCBs) of US$ 1,000 each (inclusive of premium).
(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.
For KHANDELWAL JAIN & CO. For KADAM & CO.
Chartered Accountants Chartered Accountants
SHIVRATAN AGARWAL U.S.KADAM
Partner Partner
Membership No.: 104180 Membership No.: 31055
Place : Mumbai
Date : 25th February, 2008

15
 VIDEOCON INDUSTRIES LIMITED

BALANCE SHEET AS AT 30TH SEPTEMBER, 2007

Particulars Schedule As at As at
No. 30th Sept., 2007 30th Sept., 2006
( Rupees in Million) ( Rupees in Million)

I. SOURCES OF FUNDS
1. Share Holders’ Funds
a. Share Capital 1 2,669.54 2,668.46
b. Share Capital Suspense 1A – 0.004
c. Reserves & Surplus 2 54,114.27 47,722.06
2. Deferred Tax Liability ( Net ) 2,579.00 1,596.86
3. Loan Funds
a. Secured Loans 3 33,435.01 36,083.89
b. Unsecured Loans 4 19,161.35 13,528.05

TOTAL 111,959.17 101,599.32

II. APPLICATION OF FUNDS
1. Fixed Assets 5
a. Gross Block 86,310.84 77,362.11
b. Less : Depreciation 33,766.67 28,470.91

c. Net Block 52,544.17 48,891.20

d. Producing Properties (Net) 650.54 505.17

53,194.71 49,396.37
2. Investments 6 20,924.97 17,811.68
3. Current Assets, Loans & Advances 7
a. Inventories 13,936.44 12,998.62
b. Sundry Debtors 13,142.54 11,172.85
c. Cash and Bank Balances 8,891.08 11,362.55
d. Other Current Assets 227.06 551.05
e. Loans and Advances 12,514.13 7,664.39
48,711.25 43,749.46
Less : Current Liabilities & Provisions 8
a. Current Liabilities 7,939.54 7,670.15
b. Provisions 2,932.22 1,688.04

10,871.76 9,358.19

Net Current Assets 37,839.49 34,391.27

Significant Accounting Policies and Notes to Accounts 15

TOTAL 111,959.17 101,599.32

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

16
 ANNUAL REPORT 2006-07

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER, 2007
Particulars Schedule Year ended on Year ended on
No. 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)

I. INCOME
Sales / Income from Operations 87,102.58 75,803.32
Less : Excise Duty 4,248.34 3,615.15
Net Sales 82,854.24 72,188.17
Other Income 9 1,663.62 1,654.44

TOTAL 84,517.86 73,842.61

II. EXPENDITURE
Cost of Goods Consumed/Sold 10 48,981.34 41,627.44
Production & Exploration Expenses 11 9,549.81 9,583.21
Salaries, Wages & Employees’ Benefits 12 1,053.48 946.96
Manufacturing & Other Expenses 13 6,813.88 6,934.07
Interest & Finance Charges 14 3,106.51 2,258.80
Depreciation / Amortisation 5 5,354.59 4,839.99
Less : Transferred from General Reserve – 1,484.52
Less : Transferred from Revaluation Reserve 1,170.71 –
(Refer Note No B-4 of Schedule No.15) 4,183.88 3,355.47

TOTAL 73,688.90 64,705.95

III. Profit before Tax 10,828.96 9,136.66

Provision for Taxation
Current Tax 1,232.70 819.00
Deferred Tax 1,020.18 117.23
Fringe Benefit Tax 23.89 15.41
IV. Profit for the Year 8,552.19 8,185.02
Excess provision for Income Tax for earlier years written back 35.37 3.02
Balance brought forward 8,380.87 4,389.14
Add : Transferred from Debenture/Bonds Redemption Reserve 530.55 –
Addition/Adjustment on amalgamation – (1,763.16)

V. Balance available for appropriation 17,498.98 10,814.02

VI. APPROPRIATIONS
Debenture Redemption Reserve – 12.60
Proposed Dividend - Equity 803.02 773.45
Proposed Dividend - Preference 36.81 33.87
Corporate Tax on Proposed Dividend 142.73 113.23
Transfer to General Reserve 2,000.00 1,500.00
Balance Carried to Balance Sheet 14,516.42 8,380.87

TOTAL 17,498.98 10,814.02

Basic Earnings per Share (Nominal Value Rs.10/- per share) Rs. 38.66 Rs. 36.88
Diluted Earnings per Share (Nominal Value Rs.10/- per share) Rs. 35.70 Rs. 36.88
(Refer Note No.B-13 of Schedule No. 15)

Significant Accounting Policies and Notes to Accounts 15

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

17
 VIDEOCON INDUSTRIES LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH SEPT., 2007
Year ended on Year ended on
Particulars 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax 10,828.96 9,136.67
Add:
a) Depreciation / Amortisation 4,183.88 3,355.47
b) Interest and Finance Charges 3,106.51 2,258.80
c) Producing Properties written off 833.95 177.36
d) Provision for Leave Encashment 6.83 4.28
e) Provision for Warranty and Maintenance Expenses 20.09 266.54
f) Provision for Gratuity 6.58 28.48
g) Provision for Exchange Rate Fluctuation 1,023.92 -
h) Diminution in value of Investment 40.30 12.34
i) Loss on Sale of Fixed Asset 1.45 17.39
(A) 20,052.47 15,257.33
Less:
a) Interest Received 211.84 276.87
b) Income from Investments and Securities Division 246.06 467.08
(B) 457.90 743.95
Cash flow from Operating Activities before
Working Capital changes (A-B) 19,594.57 14,513.38
Adjustments (including on amalgamation) :
a) Inventories (937.82) (4,268.41)
b) Sundry Debtors (1,969.68) (1,201.66)
c) Other Current Assets 323.99 (360.69)
d) Loans & Advances (4,849.72) 4,111.43
e) Current Liabilities 271.98 1,191.22
Cash flow from Operating Activities (C) 12,433.32 13,985.27
Less: Income Tax Paid 1,072.57 450.67
Less: Fringe Benefit Tax Paid 23.91 17.43
Net Cash flow from Operating Activities (D) 11,336.84 13,517.17
B. CASH FLOW FROM INVESTING ACTIVITIES
Sale of Fixed Assets (Net) 48.95 86.80
Interest Received 211.84 276.87
Income from Investments and Securities Division 246.06 467.08
(E) 506.85 830.75
Less:
Increase in Fixed Assets including Captial Work-in-progress 9,058.96 14,776.86
(including net additions on amalgamation)
Increase in Producing Properties 979.32 103.50
Increase in Investments (Net) 3,153.59 14,389.80
(F) 13,191.87 29,270.16
Net Cash flow from Investing Activities (E-F) (G) (12,685.02) (28,439.41)
C. CASH FLOW FROM FINANCING ACTIVITIES
Increase in Share Capital including on account of amalgamation 1.08 603.20
Increase in Share Capital Suspense on amalgamation - 0.004
Increase in Reserves on amalgamation - 1.50
Securities Premium Received and addition on amalgamation 47.66 93.42
Increase in Secured Term Loans from Banks - 10,134.75
Increase in Unsecured Loans 5,633.31 8,793.37
Increase in Working Capital Loans from Banks 951.48 66.93
(H) 6,633.53 19,693.17
Less:
Decrease in Share Capital Suspense including
on account of amalgamation 0.004 556.83
Amalgamation Adjustment Account - 1,763.17
Decrease in Secured Term Loans from Banks 1,971.42 -
Redemption of Secured Non Convertible Debentures 1,628.94 1,878.79
Decrease in Share Application Money - 95.59
Decrease in Securities Premium on account of
Share issue expenses and premium on convertible bonds 126.80 145.22
Payment of Dividend 809.92 587.75
Corporate Tax on Dividend 113.23 82.35
Interest and Finance Charges Paid 3,106.51 2,258.80
(I) 7,756.82 7,368.50
Net Cash flow from Financing Activities (H-I) (J) (1,123.29) 12,324.67
Net Change in Cash and Cash Equivalents (D+G+J) (2,471.47) (2,597.57)
Opening Balance of Cash and Cash Equivalents 11,362.55 13,960.12
Closing Balance of Cash and Cash Equivalent 8,891.08 11,362.55

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

18
 ANNUAL REPORT 2006-07

SCHEDULES TO BALANCE SHEET

As at As at As at As at
30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

SCHEDULE - 1 : SHARE CAPITAL Capital Subsidy

Authorised :
As per last Balance Sheet 5.50 5.50
500,000,000 (Previous year 500,000,000) 5,000.00 5,000.00
Equity Shares of Rs. 10/- each (B) 5.50 5.50
10,000,000(Previous year 10,000,000) 1,000.00 1,000.00
Securities Premium Account
Redeemable Preference Shares of Rs. 100/- each
As per last Balance Sheet 25,565.06 25,574.77
6,000.00 6,000.00
Add : Adjusted during the year 47.66 93.42
Issued, Subscribed and Paid-up:
Equity Shares: Less : Share Issue Expenses - 4.90
221,093,701 (Previous year 220,985,833) Equity Shares Less : Premium payable on Redemption
of Rs. 10/- each fully paid up 2,210.94 2,209.86 of Convertible Bonds 88.76 98.23
Of the above:
a) 95,078 (Previous year 95,078) Equity Shares of 25,523.96 25,565.06
Rs.10/- each have been issued on conversion of Less : Call and / or allotment money in arrears - by others 16.90 16.90
Unsecured Optionally Convertible Debentures.
b) 156,438,326 (Previous year 156,437,910) Equity (C) 25,507.06 25,548.16
Shares of Rs.10/- each were allotted pursuant to Capital Redemption Reserve
amalgamations without payments being received in As per last Balance Sheet 537.50 537.50
cash.
c) 45,777,345 (Previous year 45,777,345) Equity (D) 537.50 537.50
Shares of Rs.10/- each were issued by way of Euro
Debenture/Bonds Redemption Reserve
issues represented by Global Depository Receipts
(GDR) at a price of US$ 10.00 per share (inclusive As per last Balance Sheet 2,343.05 2,330.45
of premium). Add/(Less) : Transferred from/(to) Profit & Loss Account (530.55) 12.60
d) 107,452 (Previous year NIL) Equity Shares of Rs.10/-
(E) 1,812.50 2,343.05
each have been issued on conversion of 1,099
Foreign Currency Convertible Bonds of US$ 1000 Capital Reserve
each (inclusive of premium )
As per last Balance Sheet 1.53 0.03
Less : Calls in Arrears - by others 1.49 1.49
Add : Additions on Amalgamation - 1.50
(A) 2,209.45 2,208.37
(F) 1.53 1.53
Preference Shares:
4,523,990 (Previous year 4,523,990) 8% Redeemable 452.40 452.40 General Reserve
Preference Shares of Rs.100/- each fully paid up, As per Last Balance Sheet 1,659.72 1,385.16
redeemable at par in 3 equal installments on 1st October
Add : Transferred from Revaluation Reserve 7,538.89 259.08
2011, 1st October 2012 and 1st October 2013.
76,870 (Previous year 76,870) 8% Redeemable 7.69 7.69 Add : Transferred from Profit & Loss Account. 2,000.00 1,500.00
Preference Shares of Rs.100/- each fully paid up, Less : Transferred to Profit & Loss Account - 1,484.52
redeemable at par in 3 equal installments on 1st February
(G) 11,198.61 1,659.72
2012, 1st February 2013 and 1st February 2014.
(B) 460.09 460.09 Profit & Loss Account

Total (A+B) 2,669.54 2,668.46 As per Account annexed 14,516.42 8,380.87

SCHEDULE - 1A : SHARE CAPITAL SUSPENSE (H) 14,516.42 8,380.87

Equity Shares - 0.004 Total (A to H) 54,114.27 47,722.06
NIL (Previous year 416) Equity Shares of Rs.10/- each to
be allotted to the shareholders of erstwhile EKL
SCHEDULE - 3 : SECURED LOANS
Appliances Limited pursuant to its amalgamation with
the Company. A. Non-Convertible Debentures 2,356.24 3,985.18

Total - 0.004 B. Term Loans

i. Rupee Loans from Banks &
Financial Institutions 24,117.33 28,035.06
SCHEDULE - 2 : RESERVES & SURPLUS
Revaluation Reserve ii. FCNR-B Loan from Banks 374.92 428.24
As per last Balance Sheet 9,245.73 9,518.45 C. External Commercial Borrowings 3,803.80 1,662.12
Less : Deduction on account of Disposal/ D. Corporate Loan from Banks 82.23 215.01
Sale of Revalued Assets 0.98 13.64
E. Vehicle Loans from Banks 12.24 21.51
Less : Transferred to General Reserve 7,538.89 259.08
F. Working Capital Loans From Banks 2,688.25 1,736.77
Less : Transferred to Profit & Loss Account 1,170.71 -
(Refer Note No.B-4 of Schedule No. 15)
Total 33,435.01 36,083.89
(A) 535.15 9,245.73

19
 VIDEOCON INDUSTRIES LIMITED
A. Non Convertible Debentures: Company, subject to the extent necessary, to the charge in favour of the Joint Venture in
Out of the Non Convertible Debentures, those to the extent of : terms of the Production Sharing Contract / Joint Operating Agreement in respect of
i. Rs. 613.73 million (Previous year Rs.920.18 million) are secured by Assignment Ravva Joint Venture; and the assignment / fixed and floating charge of all the right, title
of / fixed and floating charge on all moneys received/to be received by the Company and interest into and under all project documents, including but not limited to all contracts,
in relation to and from the Ravva Joint Venture, including all receivables of the agreements or arrangements which the Company is a part to, and all leases, licenses,
Company, subject to the charge in favour of the Joint Ventures in terms of the consents, approvals related to the Ravva Joint Venture, insurance policies in the name
Production Sharing Contract/Joint Operating Agreement in respect of Ravva Joint of the Company, in a form and manner satisfactory to Trustee.
Venture, to the extent necessary. C. External Commercial Borrowings :-
ii. Rs.640.81 million (Previous year Rs.933.10 million) are secured by first charge External Commercial Borrowings are secured by a first charge ranking pari-passu over
on immovable and movable properties, both present and future, subject to prior all the present and future movable and immovable fixed assets. The loan is further secured
charge on specified movables created/to be created in favour of Company’s Bankers by personal guarantee of Mr. V. N. Dhoot and Mr. P. N. Dhoot in favour of security
for securing borrowings for working capital requirements, and ranking pari passu trustee.
with the charge created/to be created in favour of Financial Institutions/Banks in D. Corporate Loan from Banks : -
respect of their existing and future financial assistance. Also guaranteed by Mr. Corporate Loan from Banks are partially secured by first charge, partially by second
V. N. Dhoot and Mr. P. N. Dhoot. charge, ranking pari-passu, and the balance by second subservient charge, on the
iii. Rs.211.70 million (Previous year Rs.361.90 million) are secured by way of a first immovable and movable assets, both present and furture, of the Company. These are
charge on the entire immovable and movable properties of the Company ranking further secured by personal guarantee of Mr. V. N. Dhoot.
pari passu with existing charge holders except prior charge on specified movables E. Vehicle Loans from Banks : -
created in favour of Company’s bankers for borrowings of working capital and Vehicle Loans from Banks are secured by way of hypothecation of Vehicles acquired out
exclusive charge created on specific machinery financed/to be financed by the of the said loan. The loans are also guaranteed by personal guarantee of Mr. V. N. Dhoot.
banker/s and/or financial institution/s and the personal guarantee of Mr. V.N.Dhoot. F. Working Capital Loans From Banks : -
iv. Rs.890.00 million (Previous year Rs.1,350.00 million) are secured by unconditional Working Capital Loans from Banks are secured by hypothecation of the Company’s stock
and irrevocable guarantee given by IDBI (for principle and interest). The said of raw materials, packing materials, stock-in-process, finished goods, stores and spares,
guarantee assistance, provided by IDBI, is secured by a first charge in favour of book debts of Glass Shell Division only and all other current assets of the Company and
the guarantor, of all the immovable properties, both present & future, and a first personal guarantee of Mr. V. N. Dhoot and Mr. P. N. Dhoot.
charge by way of hypothecation of all the movables, present & future ranking Installments of loans from banks and financial institutions falling due within one year
pari-passu with existing charge holders, subject to charges created / to be created Rs. 4,470.61 million (Previous Year Rs. 3,871.81 million)
in favour of the Bankers on the specified current assets for securing borrowings
for working capital loans. These debentures are also guaranteed by As at As at
Mr. V. N. Dhoot. 30th Sept., 2007 30th Sept., 2006
v. Rs.NIL (Previous year Rs.420.00 million) were secured by third charge on the (Rupees in Million) (Rupees in Million)
properties of the Company. This charge was subject to and subservient to the
mortgages and charges created/to be created in favour of Financial Institutions/ SCHEDULE - 4 : UNSECURED LOANS
Debentures Trustees/Banks.
The Debenture referred to in (i) to (iv) above are redeemable at par, in one or more A. From Banks and Financial Institutions
installments on various dates with the earliest redemption being on 15th October, i. Rupee Loan 10,819.99 3,070.50
2007 and last date being 1st January, 2012. These debentures are redeemable as ii. Foreign Currency Loan 208.59 1,220.91
follows , Rs.1,107.96 million in financial year 2007-08, Rs.732.15 million in financial B. Foreign Currency Convertible Bonds 7,763.80 9,003.15
year 2008-09, Rs.386.56 million in financial year 2009-10, Rs.86.38 million in
financial year 2010-11, Rs.43.19 million in financial year 2011-12. C. Premium Payable on Redemption on
B. Term Loans : - Foreign Currency Convertible Bonds 267.13 140.33
The Term Loans are secured by mortgage of existing and future assets of the Company D. From Others - 0.10
and a floating charge on all movables assets, present and future (except book debts),
subject to prior charge of the Bankers on stock of raw materials, finished, semi finished
E. Sales Tax Deferral 101.84 93.06
goods and other movables, for securing working capital loans in the ordinary course of TOTAL 19,161.35 13,528.05
business, and exclusive charge created on specific items of machinery financed by the Notes :-
respective lenders. The above charges rank pari passu inter-se for all intents and
purposes. The above loans are guaranteed by Mr. V. N. Dhoot and Mr. P. N. Dhoot. In 1. Refer Note no. B-7 of Schedule 15.
addition to the above, a part of term loan from State Bank of India is further secured by 2. The Company has availed interest free Sales Tax Deferral under Special Incentive
way of pledge of shares of Kitchen Appliances India Ltd. and Applicomp (India) Ltd. to Prestigious Unit (modified) Scheme. The Rs.93.06 million is repayable in six
belonging to and held by the Company. A part of loans from banks are secured by the equal annual installments commencing from 30th May, 2008. and the balance in
assignment of fixed and floating charge on all moneys received/to be received by the
Company in relation to and from the Ravva Joint Venture, including all receivables of the two quarterly installments commencing from 31st December, 2009.

SCHEDULE - 5 : FIXED ASSETS (Rupees in Million)

PARTICULARS GROSS BLOCK DEPRECIATION / AMORTISATION NET BLOCK
As at Addition on Additions Deduction As at Upto Addition on For the Deduction/ Upto As at As at
30.09.2006 Amalgamation During During 30.09.2007 30.09.2006 Amalgamation Year Adjustment 30.09.2007 30.09.2007 30.09.2006
the Year the Year
TANGIBLE ASSETS
Freehold Land 120.49 - - - 120.49 - - - - - 120.49 120.49
Leasehold Land 47.82 - 0.23 - 48.05 6.70 - 0.97 - 7.67 40.38 41.12
Building 6,896.43 - 278.44 - 7,174.87 1,420.84 - 218.00 - 1,638.84 5,536.03 5,475.59
Leasehold Improvements 38.91 - 0.41 - 39.32 37.43 - 0.95 - 38.38 0.94 1.48
Plant & Machinery* 60,510.05 - 9,136.66 104.04 69,542.67 24,823.61 - 4,638.68 54.44 29,407.85 40,134.82 35,686.44
Furnace 1,992.46 - 2.81 - 1,995.27 1,113.25 - 351.98 - 1,465.23 530.04 879.21
Electrical Installation 138.06 - 11.73 - 149.79 64.57 - 7.90 - 72.47 77.32 73.49
Office Equipments 235.09 - 13.22 1.44 246.87 146.86 - 15.30 0.80 161.36 85.51 88.23
Computer Systems 378.51 - 34.33 1.89 410.95 245.62 - 41.57 1.57 285.62 125.33 132.89
Furniture & Fixtures 156.03 - 6.43 0.85 161.61 89.88 - 8.37 0.52 97.73 63.88 66.15
Vehicles 457.62 - 78.25 2.00 533.87 265.38 - 37.27 1.50 301.15 232.72 192.24
LEASED ASSETS
Computer Systems 6.27 - - - 6.27 4.96 - 1.11 - 6.07 0.20 1.31
INTANGIBLE ASSETS
Goodwill (on amalgamation) 235.98 - - - 235.98 235.98 - - - 235.98 - -
Computer Software 65.62 - 100.00 - 165.62 15.83 - 32.49 - 48.32 117.30 49.79
TOTAL 71,279.34 - 9,662.51 110.22 80,831.63 28,470.91 - 5,354.59 58.83 33,766.67 47,064.96 42,808.43
Capital Work-in-Progress 6,082.77 5,479.21 5,479.21 6,082.77
TOTAL 77,362.11 - 9,662.51 110.22 86,310.84 28,470.91 - 5,354.59 58.83 33,766.67 52,544.17 48,891.20
As at 30th September, 2006 55,786.19 2,432.14 13,687.43 626.42 71,279.34 22,867.70 1,271.80 4,839.99 508.58 28,470.91 42,808.43 -
Capital Work-in-Progress 6,153.68 6,082.77 6,082.77 -
Total as at
30th September, 2006 61,939.87 2,432.14 13,687.43 626.42 77,362.11 22,867.70 1,271.80 4,839.99 508.58 28,470.91 48,891.20 -

*Gross Block of Plant and Machinery includes Rs. 9244.75 million (Previous Year Rs.9,245.73 million) on account of the amount added on revaluation on 01.04.1998 and 01.10.2002.

20
 ANNUAL REPORT 2006-07

SCHEDULE - 6 INVESTMENTS
Face As at 30th September, 2007 As at 30th September, 2006
Value Nos (Rupees in Million) Nos (Rupees in Million)
LONG TERM INVESTMENTS
IN GOVERNMENT & TRUST SECURITIES
Master Gain 32,200 0.41 32,200 0.41
0.41 0.41
QUOTED
IN EQUITY SHARES (Fully Paid up) - TRADE
Trend Electronics Ltd. 10 1,408,800 25.41 1,608,800 29.02
(Formerly Videocon Communications Ltd)
Videocon Appliances Ltd. 10 1,811,748 51.00 1,811,748 66.67
Samtel Electronics Devices Ltd 10 82,000 1.95 82,000 3.14
78.36 98.83
IN EQUITY SHARES (Fully Paid up) - OTHERS
Allahabad Bank 10 643,343 27.46 1,178,409 50.31
Alok industries Ltd. 10 16,750 1.19 - -
Aptech Ltd. 10 14,300 4.93 - -
Arvind Mills Ltd. 10 98,900 4.89 - -
Ashapura Minechem Ltd. 2 9,050 3.34 - -
Crompton Greaves Limited 2 - - 10,000 2.46
Dena Bank 10 - - 129,889 3.51
Indusind Bank Limited 10 125,000 6.55 75,000 3.79
Punjab National Bank Limited 10 7,200 3.81 23,538 9.17
Geekay Exim India Ltd. 10 80,000 0.08 80,000 0.08
Deccan Cement Ltd. 10 189,400 17.99 189,400 17.99
Good Value Marketing Ltd. 10 25,000 0.03 25,000 0.03
Indian Overseas Bank 10 - - 180,400 1.80
Industrial Finance Corpn. Of India Ltd. 10 41,800 2.80 41,800 0.41
Jayaswal Neco Ltd. 10 210,000 6.18 210,000 2.96
Siris Infotech Ltd. 10 13,200 0.01 13,200 0.01
Siemens Ltd. 2 3,130 0.13 3,130 0.13
ICICI Bank Ltd. 10 104,293 98.39 50,381 8.06
Axis Bank Ltd (UTI Bank Ltd.) 10 - - 166,200 3.49
Adlabs Films Ltd. 5 - - 82,500 28.29
Anantraj Industries Ltd. 10 5,000 1.63 5,000 1.63
Asian Electronics Ltd. 10 - - 53,000 28.17
Asian Electronics Ltd. 5 20,000 10.98 - -
Asian Granito India Ltd. 10 100,000 10.58 - -
Bajaj Hindustan Ltd. 1 30,000 5.13 10,000 3.05
Balrampur Chini Mills Ltd. 1 9,600 0.72 - -
BF Utilities Ltd. 5 36,985 88.91 - -
Bharat Earth Movers Ltd. 10 - - 20,500 19.15
Cairn India Ltd. 10 6,372,976 1,019.68 - -
Central Bank of India 10 120,284 12.27 - -
Century Textiles & Industries Ltd. 10 2,975 2.39 - -
GAIL India Ltd. 10 6,000 2.22 - -
Gemini Communication Ltd. 5 10,000 2.22 - -
Gesco Corporation 10 - - 4,000 3.23
Gujrat Ambuja Cement Ltd. 2 - - 19,000 2.12
Gujrat Ambuja Exports Ltd. 2 25,000 0.86 - -
Gujarat Heavy Chemicals Ltd. 10 255,494 38.48 - -
Hindalco Ltd. 1 100,000 17.22 100,000 17.13
Hindustan Construction Company Ltd. 1 1,400 0.19 - -
Hindustan Zinc Ltd 10 2,000 1.34 - -
India Cements Ltd. 10 5,800 1.46 - -
India Infoline Ltd. 10 4,000 3.23 - -
IOL Broadband Ltd 10 12,500 5.61 - -
Infrastructure Development Finance Corp. Ltd. 10 - - 200,000 13.54
ITC Limited 1 100,000 18.98 100,000 18.77
IVR PRIME Urban Developers Ltd. 2 20,000 8.92 - -
J.M.Financial Services Ltd. 10 - - 7,000 5.49
Karnataka Bank Ltd. 10 27,500 5.53 - -
Kotak Mahindra Bank Ltd. 10 8,250 7.37 - -
KPIT Cummins Infosystems Ltd. 10 45,000 5.40 - -
Lanco Infratech Ltd. 10 15,300 4.69 - -
Laxmi Vilas Bank Ltd. 10 15,100 1.37 - -
Lok Housing & Construction Ltd. 10 5,000 0.72 - -
Lumax Industries Ltd. 10 22,990 10.46 - -
Mahindra Gesco Ltd. 10 7,000 4.33 - -
Matrix Labs Ltd 2 174,057 40.59 395,000 104.42
Mindtree Consulting Ltd. 10 2,000 1.02 - -
N.T.P.C. Ltd. 10 100,000 13.53 100,000 13.02
NIIT Technologies Ltd. 10 10,800 3.83 - -
ONGC Ltd. 10 7,500 5.33 5,000 5.33
Parsvnath Developers Ltd. 10 20,000 6.77 - -
Polaris Software Lab Ltd. 5 2,800 0.34 - -
Prithvi Information Solutions Ltd. 10 5,000 1.40 - -

21
 VIDEOCON INDUSTRIES LIMITED

SCHEDULE - 6 INVESTMENTS (Contd.)

Face As at 30th September, 2007 As at 30th September, 2006
Value Nos (Rupees in Million) Nos (Rupees in Million)
Provogue (India) Ltd. 10 238,550 147.42 10,000 3.15
Rallis India Ltd. 10 - - 5,000 1.48
Reliance Energy Ltd. 10 5,000 5.85 50,000 24.18
Reliance Industries Ltd. 10 2,850 6.48 - -
Reliance Petroleum Ltd. 10 230,079 13.80 560,079 33.60
Reliance Natural Resources Ltd. 5 78,650 6.14 - -
Sasken Communication Technologies Ltd. 10 5,000 1.67 - -
Satyam Computer Services Ltd. 2 9,000 4.02 - -
Sriram Urban Infrastructure Ltd. 10 50,000 16.20 - -
S.Kumars Nationwide Ltd. 10 - - 50,000 3.78
SRF Limited 10 51,000 7.41 10,000 2.37
Shree Renuka Sugars Ltd 10 - - 8,000 5.18
State Bank of India 10 4,000 6.53 - -
Steel Authority of India Ltd. 10 32,400 5.39 - -
Tata Iron and Steel Ltd. 10 - - 100,000 53.57
Voltas Co. Ltd. 1 - - 40,000 4.12
Welspun Gujarat Stahi Rohren Ltd. 5 15,200 3.69 - -
Wire & Wireless (India) Ltd. 1 10,000 0.45 - -
Yes Bank Ltd. 10 27,500 5.26 - -
Maharashtra Seamless Ltd. 5 - - 5,000 1.89
Madras Alluminium Ltd. 10 - - 10,000 3.69
Nirlon Ltd. 10 - - 87,500 1.76
Sterlite Industries Ltd. 2 - - 20,000 8.32
1,779.79 514.63
IN MUTUAL FUNDS UNITS
BOI Units 10 1,000,000 10.00 1,000,000 10.00
10.00 10.00
UNQUOTED
1. IN EQUITY SHARES (Fully Paid up) - TRADE
Applicomp (India) Ltd. 10 17,023,500 170.23 17,023,500 170.23
Indian Refrigeration Co. Ltd. 10 1,990,000 19.90 1,990,000 19.90
Kitchen Appliances (India) Ltd. 10 1,156,000 18.27 1,156,000 18.27
Millennium Appliances India Ltd. 10 4,750,000 95.00 4,750,000 95.00
Akai Consumer Electronics India Ltd. 10 35,000 0.35 35,000 0.35
Next Retail India Ltd. 10 10,036,000 100.36 36,000 0.36
(Formerly E-Mart India Ltd.)
Plug-In Sales Ltd. 100 1,900 0.19 - -
TekCare India Pvt.Ltd. 10 1,900 0.02 1,900 0.02
(Formerly Macotax Consultants Pvt.Ltd )
Kentosh Electronics India Pvt. Ltd. 10 1,720 0.02 1,720 0.02
Hyundai Electronics India Ltd. 10 9,500 0.09 9,500 0.09
404.43 304.24
2. IN EQUITY SHARES (Fully Paid up) - OTHERS
Ease Finance Limited 10 4,800 0.96 4,800 0.96
Evans Fraser & Co. (India) Limited 100 6,250 40.63 6,250 40.63
Holzmann Videocon Engineers Limited 10 990,600 - 990,600 0.99
Kay Kay Construction Limited 10 4,500 0.90 4,500 0.90
Bolton Properties Limited 10 112,500 13.66 112,500 13.66
Worli Infrastructures & Developers Private Limited 10 45,000 0.45 45,000 0.45
Videocon SEZ Infrastructures Limited 10 2,500 0.03 - -
Videocon SEZ Infrastructures (Aurangabad) Limited 10 2,500 0.03 - -
Videocon SEZ Infrastructures (West Bengal) Limited 10 2,500 0.02 - -
Videocon SEZ Infrastructures (Pune) Limited 10 2,500 0.02 - -
Videocon Realty Limited 10 2,500 0.02 - -
Kores India Ltd. 10 1,170,000 1.17 - -
Gayatri Projects Ltd. 10 - - 950,000 -
Goa Energy Pvt. Ltd. 10 1,000 0.01 1,000 0.01
The Banaras State Bank Ltd. 100 25,000 0.02 25,000 0.02
Digital Display Devices S.p.a. Euro 1 36,000 1.96 36,000 1.96
Deve Sugars Ltd. 10 125,000 0.12 125,000 0.12
60.00 59.70
3. IN EQUITY SHARES OF SUBSIDIARIES
(Fully Paid up)
Videocon (Mauritius) Infrastructure Ventures Ltd. US$ 1 530,000 22.58 530,000 22.58
Paramount Global Ltd. US$ 1 12,800,000 562.12 12,800,000 562.12
Videocon Global Ltd. US$ 1 2,500 0.12 2,500 0.12
Mars Overseas Ltd. US$ 1 - - 1,000,000 46.33
Sky Billon Trading Ltd. US$ 1 1,072,000 49.61 - -
Eagle Corporation Ltd. US$ 1 1,000 0.05 1,000 0.05
Powerking Corporation Ltd. US$ 1 2,711 0.12 2,711 0.12
Global Energy Inc. US$ 1 1,000 0.04 - -
Venus Corporation Ltd. US$ 1 2,982 0.14 2,982 0.14
Middle East Appliances LLC. RO 1 2,251,800 270.14 2,251,800 270.14
Videocon Display Research Co. Ltd. JPY 50000 1,200 22.98 - -

22
 ANNUAL REPORT 2006-07

SCHEDULE - 6 INVESTMENTS (Contd.)

Face As at 30th September, 2007 As at 30th September, 2006
Value Nos (Rupees in Million) Nos (Rupees in Million)

Gajanan Electronics & Home Appliances Pvt. Ltd. 10 - - 10,000 0.10

Godavari Consumer Electronics Appliances Pvt. Ltd. 10 10,000 0.10 10,000 0.10
Mayur Household Electronics Pvt. Ltd. 10 10,000 0.10 10,000 0.10
928.10 901.90
4. IN PREFERENCE SHARES (Fully Paid up)
Plug-In Sales Ltd. 100 3,800 0.38 - -
0.38 -
IN DEBENTURES
7.75% Non Convertible Debentures of 100000 100 10.00 100 10.00
Oriental Bank of Commerce
Redeemable Non Convertible Debentures of 1000000 50 50.00 - -
Citi Corp Finance (India) Ltd.
60.00 10.00
OTHER INVESTMENTS
A. In Shares of Co-operative Bank
Bombay Mercantile Co-Op. Bank Ltd. 4,166 0.04 4,166 0.04
The Saraswat Co-Operative Bank Ltd. 1,000 0.01 1,000 0.01
A’nagar Dist. Urban Central Co-Op Bank Ltd. 10 0.001 10 0.001
Janta Sahakari Bank Ltd. 857 0.09 857 0.09
Bharati Sahakari Bank Ltd. 7,670 0.38 7,670 0.38
0.52 0.52
B. In Shares of Co-operative Society 31 0.002 31 0.002
0.52 0.52
SHARE APPLICATION MONEY PENDING ALLOTMENT
A. SUBSIDIARIES
Global Energy Inc. 13.04 -
Eagle Corporation Ltd. 13,575.65 13,575.65
13,588.69 13,575.65
B. OTHERS
Techno Electronics Ltd. 201.18 -
Next Retail India Ltd. 1,000.00 449.64
(Formerly E-Mart India Ltd.)
Kitchen Appliances (India) Ltd. 650.00 -
Sky Appliances Ltd. 150.00 -
Videocon Realty and Infrastructures Ltd. 1,000.00 -
Goa Energy Pvt. Ltd. 300.00 -
3,301.18 449.64
APPLICATION MONEY (UNITS)
LICMF Systematic Asset Allocation Fund 50.00 -
Prudential ICICI Asia Equity Fund 50.00 -
100.00 -
CURRENT INVESTMENTS
UNQUOTED
IN BONDS
8.90% Citi Financial 2009 Bonds 1000000 - - 1,000 1,000.98
- 1,000.98
IN UNITS OF MUTUAL FUNDS
Prudential ICICI Fusion Fund-Growth 10 - - 100,000 1.00
Standard Chartered Enterprises Equity Fund-Growth 10 - - 50,000,000 500.00
Canmulticap Growth Plan 10 5,000,000 50.00 - -
J M Contra Fund-Dividend Plan (243) 10 5,000,000 50.00 - -
LICMF India Vision Fund 10 10,000,000 100.00 - -
L.I.C.Mutual Fund ( Liquid ) 10 - - 19,105,846.389 250.00
L.I.C.Mutual Fund ( Growth ) 10 - - 5,617,409.475 50.00
Principal Cash Management Fund Liquid Option
Insti.Premium Plan - Growth 10 17,404,438 210.83 7,491,346.46 82.69
Principal Floating Rate Fund Fmp Instl.Option Growth Plan 10 2,527,030 30.28 - -
Principal PNB Long Term Equity Fund 3 year Plan Series I 10 200,000 2.00 - -
Principal PNB Long Term Equity Fund 3 year Plan Siries II 10 500,000 5.00 - -
FUIG ICICI Prudential Fusion Fund-Growth 10 5,000,000 50.00 - -
Reliance Long Term Equity Fund-Growth 10 10,000,000 100.00 - -
UTI Wealth Builder Fund-Growth 10 100,000 1.00 - -
Optimix Dynamic Multi-Manager FoF Scheme-Growth 10 2,000,000 20.00 - -
Kotak Mahindra Lifestyle-Growth 10 - - 150,000 1.49
619.11 885.18
TOTAL INVESTMENTS 20,924.97 17,811.68
Aggregate Book Value of quoted Investments 1,862.56 623.87
Aggregate market value of quoted Investments 2,303.83 941.30
Aggregate Book Value of unquoted Investments
/ Application Money 19,062.41 17,187.81

23
 VIDEOCON INDUSTRIES LIMITED

SCHEDULE - 6 INVESTMENTS (Contd.)

Details of Investments acquired and sold/redeemed during the year:
Particulars Qty. Cost Particulars Qty. Cost
(Rupees in Million) (Rupees in Million)
LICMF Liquid Fund-Growth 396,090,118 5,350.00 OPTO Circuites India Ltd. 30,000 9.17
Principal Cash Management Fund Orchid Chemicals Ltd. 1,050 0.22
Liquid Option Instl. Plan - Growth 724,350,733 8,435.70 Provogue India Ltd. 357,553 216.49
ING Vysya Liquid Fund Super Inst.-Growth 27,812,801 300.00 R. Systems International Ltd. 6,000 1.22
SBI Mutual Fund 8,125,700 95.00 Raban Sun Optics India Ltd. 5,000 0.47
Principal Income Fund Short Term-Inst. Plan-Growth 6,944,207 84.42 Reliance Capital Ltd. 10,000 6.29
Lotus India Liquid Fund-Inst Plus Growth 19,918,175 200.00 Reliance Communication Ltd. 5,000 2.06
Reliance Liquid Fund Cash Plan-Growth 46,187,222 550.00 Reliance Energy Ltd. 5,000 5.85
Kotak Liquid (Institutional Premium)-Growth 5,774,057 86.50 Reliance Industries Ltd. 3,000 6.96
Dbs Chola Short Term Floating Rate-Cumulative 27,079,112 302.00 S Kumar Synfab 16,000 1.29
SBI Magnum Insta Cash Fund 1,793,443 30.00 S Kumars Nationwide Ltd. 10,000 0.76
HSBC Cash Fund Instl Plus-Growth 5,505,861 65.00 SAK Soft Ltd. 40,000 5.78
Reliance Floating Rate Fund-Growth Plan 20,928,739 250.00 Sandesh Ltd. 37,743 8.14
Srei Insfrastructure Finance Ltd.12% 1 0.91 Sasken Communication Technologies Ltd. 11,343 5.23
Principal PNB Maturity Plan (FMP-38) 3,027,963 30.28 Shree Renuka Sugars Ltd. 17,000 10.23
Principal Floating Rate Fund-SMP 13,406,510 160.00 Spicejet Ltd. 20,000 1.14
HSBC Unique Opportunities Fund 500,000 5.00 SRF Ltd. 6,000 1.26
J M Contra Fund 5,000,000 50.00 Tata Sponge Iron Ltd. 10,000 1.16
UTI Liquid Cash Plan Inst.-Growth 314,077.165 400.00 Tata Steel Ltd. 153,775 72.69
3i Infotech Ltd. 16,000 4.12 Tech Mahindra Ltd. 4,000 7.10
Aarvee Denims & Exports Ltd. 110,673 10.61 Texmaco Ltd. 3,200 2.79
Aban Offshore Ltd. 79,189 93.83 Thermax Ltd. 5,000 1.57
Adani Enterprises Ltd. 18,700 5.51 Union Bank of India 14,700 2.13
Aditya Birla Nuvo Ltd. 7,000 7.76 United Spirits Ltd.(Mcdowell & Co.) 5,000 3.13
Adlabs Films Ltd. 273 0.12 Unity Infraprojects Ltd. 11,126 6.18
Ai Champdany Industries Ltd. 1,619 0.15 Vimal Oil & Foods Ltd. 65,327 3.03
Allsec Technologies Ltd. 5,000 1.33 Visualsoft Technologies Ltd. 50,000 4.38
Alok Industries Ltd. 30,150 2.13 Voltamp Transformers Ltd. 26,104 17.81
Alstom Projects India Ltd. 10,000 4.52 Voltas India Ltd. 36,079 3.77
Ansal Prop & Infrastructure Ltd. 9,000 8.50 Welspun Gujarat Stahi Rohren Ltd. 24,000 3.39
Apollo Hospitals Enterprise Ltd. 2,000 1.01 Zee Entertainment Enterprises Ltd. 3,500 1.09
Arvind Mills Ltd. 8,600 0.43
Ashapura Minechem Ltd. 16,000 5.38 As at As at
Asian Electronics Ltd. 70,459 35.05 30th Sept., 2007 30th Sept., 2006
Balaji Telefilms Ltd . 5,000 0.77 (Rupees in Million) (Rupees in Million)
BF Utilities Ltd. 7,590 22.11
Bharat Forge Ltd. 19,000 5.20
Biocon Ltd. 5,000 2.35 SCHEDULE - 7 : CURRENT ASSETS,
Blue Star Ltd. 13,917 2.38 LOANS & ADVANCES
Bombay Dyeing Ltd. 20,500 13.92 A. Inventories
Century Textiles Ltd. 10,000 5.91 (As taken, valued and certified by the Management)
Champagne Indage Ltd. 562 0.38 Raw Materials including Consumables,
Cmc Ltd. 1,000 1.25 Stores & Spares 8,119.11 7,359.11
Dish TV India Ltd. 10,000 1.18 Work in Process 988.43 831.47
Elecon Engineering Co. Ltd. 21,000 6.34 Finished Goods 3,172.89 3,015.01
Esab India Ltd. 1,000 0.42 Material in Transit and in Bonded warehouse 1,361.29 1,481.67
Ess Dee Alum Ltd. 5,000 1.39 Drilling and Production Materials 206.29 226.83
Everest Kant Ltd. 25,000 16.72 Crude Oil 88.43 84.53
Gateway Distriparks Ltd. 10,000 1.80 (A) 13,936.44 12,998.62
Gayatri Projects Ltd. 952 0.37
Gemini Communications Ltd. 15,000 6.31 B. Sundry Debtors (Unsecured)
Gitanjali Gems Ltd. 10,000 2.47 Outstanding for a period exceeding six months
Great Offshore Ltd. 5,000 3.98 Considered Good 93.65 104.05
Gujarat Apollo Industries Ltd. 5,000 0.97 Considered Doubtful 410.96 384.94
Gujarat Heavy Chemicals Ltd. 359,506 64.48 504.61 488.99
Hindustan Construction Company Ltd. 5,000 0.68 Less : Provision for doubtful debts 410.96 384.94
Hindustan Zinc Ltd. 18,500 14.51 93.65 104.05
Housing Development & Infrastructure Ltd. 5,000 2.93 Others - Considered Good 13,048.89 11,068.80
ICICI Bank Ltd. 239,394 223.56
Ind Bank Merchant Banking Services 47,000 0.98 (B) 13,142.54 11,172.85
Indiabulls Real Estate Ltd. 20,000 8.63 C. Cash & Bank Balances
Indian Bank 15,400 2.35 Cash on hand 13.64 10.49
IOL Broadband Ltd. 64,490 17.89 Cheque/Drafts on hand /in Transit 410.38 161.58
Industrial Finance Corporation of India Ltd. 131,450 8.81 Balance With Scheduled Bank
Infrastructure Development Finance Company Ltd. 30,000 3.03 In Current Accounts 1,243.76 733.02
Inox Leisure Ltd. 16,000 2.67 In Fixed Deposits 7,184.74 10,416.26
IT People India Ltd. 50,000 1.45 In Dividend/Interest Warrant Account (Per Contra) 38.10 40.69
J M Financial Services Ltd. 35 0.03 Balances with Non-Scheduled Bank in Current Accounts
Jai Corp Ltd. 5,819 15.01 Agricultural Bank of China - 0.51
Jaiprakash Associates Ltd. 5,000 3.14 (Maximum Balance Outstanding during the year
Jyoti Structures Ltd. 5,000 0.65 Rs. 0.51 million, Previous year Rs.3.18 million)
Jyoti Structures Ltd. 25,000 3.23 China Merchants Bank 0.46 -
Kalyani Steels Ltd. 2,560 1.12 (Maximum Balance Outstanding during the year
Kilburn Engineering Ltd. 10,000 0.88 Rs.4.99 million, Previous year Rs. NIL)
Kirloskar Electric Co. Ltd. 15,000 1.37 (C) 8,891.08 11,362.55
KLG Systel Ltd. 25,000 8.09 D. Other Current Assets
Kotak Mahindra Bank 1,749 1.56 Interest Accrued 59.67 58.48
KPIT Cummins Infosystems Ltd. 20,000 3.19 Insurance Claim Receivable 36.08 31.54
Lanco Infratech Ltd. 2,000 0.52 Other Receivable 131.31 459.12
Laxmi Vilas Bank 5,000 0.58 Duty Drawback Receivable - 1.91
Lok Housing & Construction Ltd. 9,000 3.07 (D) 227.06 551.05
Lumax Industries Ltd. 6,692 2.85
Madras Alluminium Ltd. 1,000 0.56 E. Loans & Advances (Unsecured, considered good)
Mahindra & Mahindra Ltd. 1,248 0.89 Advances to Subsidiary Companies 2,298.16 1,272.48
Maruti Udyog Ltd. 2,800 2.48 Advances recoverable in Cash or in kind
Maxwell Industires Ltd. 313,208 16.45 or for value to be received 9,786.09 5,683.50
McNally Bharat Engineering Co. Ltd. 2,755 0.40 Balance with Central Excise / Customs Department 150.50 531.76
Mercator Lines Ltd. 30,000 1.29 Advance Fringe Benefit Tax (Net of Provision) 0.02 -
Mindtree Consulting Ltd. 2,000 1.65 Other Deposits 279.36 176.65
Nahar Spinning Mills Ltd. 5,000 1.41 (E) 12,514.13 7,664.39
Nirlon Ltd. 1,411,750 104.86 TOTAL( A to E) 48,711.25 43,749.46

24
 ANNUAL REPORT 2006-07

As at As at Year ended on Year ended on

30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

SCHEDULE - 8 : CURRENT LIABILITIES & PROVISIONS SCHEDULE - 13 : MANUFACTURING & OTHER EXPENSES
A. Current Liabilities Power, Fuel & Water 731.61 668.12
Sundry Creditors * 5,953.76 5,059.50 Freight & Forwarding 958.76 758.52
Bank Overdraft as per books 15.12 55.25 Rent 135.23 45.54
Interest Accrued but not due 293.82 246.71 Rates & Taxes 129.74 138.63
Other Liabilities 1,638.74 2,268.00 Repairs to Building 31.74 27.23
Unclaimed Dividend/Interest (Per Contra) 38.10 40.69 Repairs to Plant & Machinery 95.24 66.06
* Including Acceptance of Rs.2,845.28 million Repairs & Maintenance-others 54.37 47.60
(Previous year Rs. 3,288.49 million) (A) 7,939.54 7,670.15 Insurance Expenses 107.90 147.37
B. Provisions Advertisement & Publicity 965.46 1,064.58
Provision for Income Tax (Net of Advance Tax) 472.39 347.63 Sales Promotion Expenses 190.11 167.09
Proposed Dividend - Equity 803.02 773.45 Discount & Incentive Schemes 1,990.38 2,131.02
Proposed Dividend - Preference 36.81 33.87 Bank Charges 265.21 288.72
Provision for Corporate Tax on Proposed Dividend 142.73 113.23 Auditiors’ Remuneration 8.33 7.76
Provision for Warranty and Maintenance Expenses 380.64 360.55 Donation 71.58 71.40
Provision for Exchange Rate Fluctuation 1,023.91 - (Includes Amount Paid to Rashtriya Janata Dal
Provision for Leave Encashment 37.66 30.83 Rs. 5.00 million (Previous year Rs.5.00 million to
Provision for Gratuity 35.06 28.48 Nationalist Congress Party, Rs.5.00 million to
Rashtriya Janata Dal and Rs.20.00 million to
(B) 2,932.22 1,688.04
All India Congress Committee )
TOTAL (A + B) 10,871.76 9,358.19 Directors’ Sitting Fees 1.18 0.73
Legal & Professional Charges 128.09 245.46
SCHEDULES TO PROFIT AND LOSS ACCOUNT Royalty
Printing & Stationery
72.14
21.96
80.00
33.29
Year ended on Year ended on Warranty and Maintenance Expenses 581.48 540.67
30th Sept., 2007 30th Sept., 2006 Loss on Sale of Fixed Assets 1.45 17.39
(Rupees in Million) (Rupees in Million) Bad Debts Written off 27.73 32.24
Technical Know-How Fees - 8.71
SCHEDULE - 9 : OTHER INCOME Miscellaneous Expenses 244.19 345.94
Interest Income 211.64 276.87
TOTAL 6,813.88 6,934.07
(TDS Rs.3.88 million Previous year Rs.8.59 million)
Income From Investments & Securities Division 205.76 454.73 SCHEDULE - 14 : INTEREST & FINANCE CHARGES
(TDS Rs.43.24 million, Previous year Rs.56.04 million) On Fixed Period Borrowings 2,709.99 1,745.22
(Refer Note No.B-12 of Schedule No. 15) On Others 396.52 513.58
Insurance Claim Received 64.93 49.97 TOTAL 3,106.51 2,258.80
Exchange Rate Fluctuation 883.23 175.00
Miscellaneous Income 297.86 697.87 SCHEDULE - 15 : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS
(TDS Rs.0.02 million Previous year Rs.NIL)
A] SIGNIFICANT ACCOUNTING POLICIES :-
TOTAL 1,663.62 1,654.44
1. Basis of Accounting:
SCHEDULE - 10 : COST OF GOODS CONSUMED/SOLD a) The financial statements are prepared under historical cost convention, except for
A. Material and Components Consumed certain Fixed Assets which are revalued, using the accrual system of accounting in
Opening Stock 7,359.11 4,862.94 accordance with the accounting Principles Generally Accepted in India (Indian GAAP)
Add : Addition on Amalgamation - 262.73 and the requirements of the Companies Act, 1956, including the mandatory Accounting
Add : Purchases 50,060.08 44,894.18 Standards issued by the Institute of Chartered Accountants of India, as referred to in
57,419.19 50,019.85 Section 211 (3C) of the Companies Act, 1956.
Less : Closing Stock 8,119.11 7,359.11 b) Use of Estimates
(A) 49,300.08 42,660.74 The preparation of financial statements requires the management of the Company to
B. (Increase)/Decrease in Stock make estimates and assumptions that affect the reported balances of assets and
Closing Stock : liabilities and disclosures relating to the contingent liabilities as at the date of the
Finished Goods 3,261.32 3,099.54 financial statements and reported amounts of income and expenses during the year.
Work in Process 988.43 831.47 Example of such estimates include provisions for doubtful debts, employee retirement
4,249.75 3,931.01 benefits plans, provision for income tax, accounting for contract costs expected to
Opening Stock : be incurred to complete software development and the useful lives of fixed assets.
Finished Goods 3,099.54 2,059.37 2. Fixed Assets:
Add : Addition on Amalgamation - 208.72 a) Fixed Assets are stated at actual cost, except for certain fixed assets which have
3,099.54 2,268.09 been stated at revalued amounts, less accumulated depreciation / amortisation and
Work in Process 831.47 624.03 impairment loss, if any. The actual cost is inclusive of freight, installation cost, duties,
Add : Addition on Amalgamation - 5.59 taxes, financing cost and other incidental expenses but net of Modvat/Cenvat/Value
831.47 629.62
added tax. Exchange difference, if any, in respect of liabilities incurred to acquire
3,931.01 2,897.71
fixed assets is adjusted to the carrying amount of respective fixed assets.
(B) (318.74) (1,033.30) b) Capital Work in Progress is carried at cost, comprising of direct cost, attributable
TOTAL (A+B) 48,981.34 41,627.44 interest and related incidental expenditure. The advances given for acquiring fixed
assets are shown under Capital Work in Progress.
SCHEDULE - 11 : PRODUCTION & 3. Joint Ventures for Oil and Gas Fields:
EXPLORATION EXPENSES - OIL & GAS In respect of joint ventures in the nature of Production Sharing Contracts (PSC) entered
Production Expenses 358.41 241.92 into by the Company for oil and gas exploration and production activities, the Company’s
Royalty 384.83 393.96 share in the assets and liabilities as well as income and expenditure of Joint Venture
Cess 566.53 543.25 Operations are accounted for according to the Participating Interest of the Company as per
Production Bonus 107.80 191.87 the PSC and the Joint Operating Agreements on a line-by-line basis in the Company’s
Government Share in Profit Petroleum 6,763.18 7,861.84 Financial Statements.
Abandonment Costs 47.64 61.24 4. Exploration, Development and Production Costs:
Producing Properties Written Off 833.95 177.36 The Company follows the “Successful Efforts Method” of accounting for oil and gas
Exploration Expenses 487.47 111.77 exploration, development and production activities as explained below:
TOTAL 9,549.81 9,583.21 a) Exploration and production cost are expensed in the year/period in which these are
incurred.
SCHEDULE - 12 : SALARY, WAGES &
b) Development costs are capitalised and reflected as “Producing Properties”. Costs
EMPLOYEES’ BENEFITS include recharges to the Joint Venture by the Operator/Affiliate in respect of the
Salary, Wages & Other Benefits 882.85 799.69 actual cost incurred and as set out in the Production Sharing Contract (PSC).
Contribution to Provident and other Funds 72.80 57.58 Producing Properties are depleted using the “Unit of Production Method”.
Staff Welfare 97.83 89.69 5. Abandonment Costs:
TOTAL 1,053.48 946.96 Abandonment Costs relating to dismantling, abandoning and restoring offshore well sites
and allied facilities are provided for on the basis of “Unit of Production Method”. Aggregate

25
 VIDEOCON INDUSTRIES LIMITED

abandonment costs to be incurred are estimated based on technical evaluation by experts. and unit at Butibori Dist. Nagpur, Maharashtra, is provided for on actuarial valuation
6. Depreciation and Amortisation: basis and in respect of other employees to the extent encashable as at the end of the
The Company provides depreciation on fixed assets held in India on written down value financial year as per rules of the Company.
method in the manner and at the rates specified in the Schedule XIV to the Companies Act, 17. Taxation:
1956 except a) on Fixed Assets of Consumer Electronics Divisions other than Glass Shell Income tax comprises of current tax, deferred tax and Fringe Benefit tax. Provision for
Division and; b) on office buildings acquired after 01.04.2000, on which depreciation is current income tax and fringe benefit tax is made on the assessable income/benefits at the
provided on straight line method at the rates specified in the said Schedule. Depreciation rate applicable to relevant assessment year. Deferred tax assets and liabilities are recognised
on fixed assets held outside India is calculated on straight line method at the rates prescribed for the future tax consequences of timing differences, subject to the consideration of
in the aforesaid Schedule or based on useful life of assets whichever is higher. Producing prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or
Properties are depleted using the “Unit of Production Method”. Leasehold Land is amortised substantively enacted by the balance sheet date. The carrying amount of deferred tax asset/
over the period of lease. liability are reviewed at each Balance Sheet date and recognised and carried forward only
The depreciation on revised carrying amount of fixed assets arising on account of translation to the extent that there is a reasonable certainty that the asset will be realised in future.
of Foreign Currency Loans availed in respect of the Fixed Assets and on revaluation of 18. Share Issue Expenses:
assets is provided as aforesaid over the residual useful life of the respective assets. Share issue expenses are written off to Securities Premium Account.
Intangibles: Intangible assets are amortised over a period of five years. 19. Premium on Redemption of Bonds / Debentures:
7. Impairment of Assets : Premium on Redemption of Bonds / Debentures are written off to Securities Premium
The Fixed Assets or a group of assets (Cash generating unit) and Producing Properties are Account.
reviewed for impairment at each Balance Sheet date. In case of any such indication, the 20. Research and Development:
recoverable amount of these assets or group of assets is determined, and if such recoverable Revenue expenditure pertaining to Research and Development is charged to revenue under
amount of the asset or cash generating unit to which the asset belongs is less than its the respective heads of account in the period in which it is incurred. Capital expenditure, if
carrying amount, the impairment loss is recognised by writing down such assets to their any, on Research and Development is shown as an addition to Fixed Assets under the
recoverable amount. An impairment loss is reversed if there is change in the recoverable respective heads.
amount and such loss either no longer exists or has decreased. 21. Accounting for Leases:
8. Investments: Where the company is lessee
a) Current Investments : Current Investments are carried at lower of cost or quoted/fair a) Operating Leases : Rentals in respect of all operating leases are charged to Profit &
value. Loss Account.
b) Long Term Investments : Quoted Investments are valued at cost or market value b) Finance Leases :
whichever is lower. Unquoted Investments are stated at cost. The decline in the (i) Rentals in respect of all finance leases entered before 1st April, 2001 are charged
value of the unquoted investment, other than temporary, is provided for. to Profit & Loss Account.
Cost is inclusive of brokerage, fees and duties but excludes Securities Transaction Tax. (ii) In accordance with Accounting Standard - 19 on “Accounting for Leases” issued
9. Inventories: by the Institute of Chartered Accountants of India, assets acquired under finance
Inventories including crude oil stocks are valued at cost or net realisable value whichever lease on or after 1st April, 2001, are capitalised at the lower of their fair value
is lower. Cost of inventories comprises all costs of purchase, conversion and other costs and present value of the minimum lease payments and are disclosed as “Leased
incurred in bringing the inventories to their present location and condition. Cost is Assets”.
determined on Weighted Average basis. 22. Warranty:
10. Borrowing Costs: Provision for the estimated liability in respect of warranty on sale of consumer electronics
Borrowing costs that are directly attributable to the acquisition, construction or production and home appliances products is made in the year in which the revenues are recognised,
of an qualifying asset are capitalised as part of the cost of that asset. Other borrowing based on technical evaluation and past experience.
costs are recognised as an expense in the period in which they are incurred. 23. Prior Period Items:
11. Excise and Customs Duty: Prior period items are included in the respective heads of accounts and material items are
Excise Duty in respect of finished goods lying in factory premises and Customs Duty on disclosed by way of notes to accounts.
goods lying in customs bonded warehouse are provided for and included in the valuation 24. Provision, Contingent Liabilities and Contingent Assets:
of inventory. Provisions comprise liabilities of uncertain timing or amount. Provisions are recognised
12. MODVAT/ CENVAT/Value Added Tax: when there is a present obligation as a result of past events and it is probable that there will
Modvat/Cenvat/Value Added Tax Benefit is accounted for by reducing the purchase cost of be an outflow of resources.
the materials/fixed assets. Contingent Liabilities are disclosed by way of Notes to Accounts. Disputed demands in
13. Revenue Recognition: respect of Central Excise, Customs, Income tax and Sales Tax are disclosed as contingent
a) Revenue is recognised on transfer of significant risk and reward in respect of liabilities. Payment in respect of such demands, if any, is shown as an advance, till the final
ownership. outcome of the matter.
b) Sale of Crude Oil and Natural Gas are exclusive of Sales Tax. Other Sales/turnover Contingent assets are not recognised in the financial statements.
includes sales value of goods, services, excise duty, duty drawback and other 25. Other Accounting Policies:
recoveries such as insurance, transportation and packing charges but excludes sales These are consistent with the generally accepted accounting practices.
tax and recovery of financial and discounting charges. B] NOTES TO ACCOUNTS :-
c) Insurance, duty drawback and other claims are accounted for as and when admitted As at As at
by the appropriate authorities. 30th Sept., 2007 30th Sept., 2006
14. Foreign Currency Transactions: (Rs. In Million) (Rs. In Million)
a) Transactions in foreign currencies are recorded at the exchange rate prevailing on
the date of transactions. Current Assets and Current Liabilities are translated at the 1. Contingent Liabilities not provided for:
year end rate. The difference between the rate prevailing on the date of transaction a) Letters of Guarantees 30,905.62 25,189.10
and on the date of settlement as also on translation of Current Assets and Current Includes Bank Guarantees given to Sales
Liabilities at the end of the year is recognised, as the case may be, as income or Tax Department Rs. 8.21 million (Previous year
expense for the year. Rs. 12.55 million) against demand stated in ‘g’ below
b) Foreign Currency liabilities in respect of loans availed for fixed assets and outstanding b) Letters of Credit opened 3,593.37 1,288.86
on the last day of the financial year are translated at the exchange rate prevailing on c) Customs Penalty - Stayed by High Court 11.85 11.85
that day and any loss or gain arising out of such translation is adjusted to the cost of d) Customs Duty demands under dispute 95.96 94.42
the fixed assets and depreciation is also charged/adjusted on such differences. [Amount paid under protest Rs. 0.40 million
15. Translation of the financial statements of foreign branch: (Previous year Rs. 3.94 million)]
a) Revenue items are translated at average rates. e) Income Tax demands under dispute 102.16 100.25
b) Opening and closing inventories are translated at the rate prevalent at the [Amount paid under protest Rs.102.16 million
commencement and close, respectively, of the accounting year. (Previous year Rs.100.25 million)]
c) Fixed assets are translated at the exchange rate as on the date of the transaction. f) Excise Duty and Service Tax demand under dispute 221.81 387.17
Depreciation on fixed assets is translated at the rates used for translation of the [Amount paid under protest Rs.49.21 million
value of the assets to which it relates. (Previous year Rs. 2.43 million)]
d) Other current assets and current liabilities are translated at the closing rate. g) Sales Tax demands under dispute 213.41 243.74
16. Retirement Benefits: [Amount paid under protest Rs. 42.42 million
a) Contributions to Provident Fund and Family Pension Scheme are accounted for on (Previous year Rs. 34.20 million)]
accrual basis and charged to Profit & Loss Account. h) Others 51.42 47.91
b) The Company’s employees, except for employees of units at Shahjahanpur, Dist. i) Disputed Income Tax demand amounting to Rs. 22.29 million in respect of certain payment
Alwar, Rajasthan and at Butibori Dist. Nagpur, Maharashtra, are covered under the made by Ravva Oil & Gas Field Joint Venture is currently pending before the Income Tax
Employees Group Gratuity Cum Life Assurance Scheme of Life Insurance Corporation Appellate Tribunal. The ultimate outcome of the matter cannot presently be determined
of India. The Company accounts for gratuity liability equivalent to the premium amount and no provision for any liability that may result has been made in the accounts as the
payable to Life Insurance Corporation of India every year, which is based on actuarial same is subject to agreement by the members of the Joint Venture. Should it ultimately
valuation. The liability with respect to the gratuity for the employees of units at become payable, the Company’s share as per the participating interest would be upto Rs.
Shahjahanpur, Dist: Alwar, Rajasthan and at Butibori Dist: Nagpur, Maharashtra are 5.57 million.
accounted/ provided for on the basis of actuarial valuation at year end. 2. a) There was a dispute regarding (i) deductibility of Oil and Natural Gas Corporation Ltd.
c) Liability on account of leave encashment in respect of employees of Glass Shell unit (ONGC) Carry while computing the Post Tax Rate of Return (PTRR) under the Ravva
at village Chhavaj, Dist.Bharuch, Gujrat, unit at Shahjahanpur Dist. Alwar, Rajasthan, Production Sharing Contract (PSC); (ii) deductibility of provision of Site Restoration Costs

26
 ANNUAL REPORT 2006-07
for computation of Cost Petroleum and PTRR; (iii) deductibility of inventory purchased for Consequent to this change in policy the cumulative amount transferred from General Reserve on
computation of Cost Petroleum and PTRR; (iv) deductibility of Notional Dividend Distribution account of additional depreciation relating to revaluation of fixed assets upto 30th September
Tax under the Income-tax Act, 1961 for computation of PTRR; and (v) deductibility of 2006 amounting to Rs.7,538.89 million has been transferred from Revaluation Reserve Account
Deposits, Advances and Pre-payments made for the purpose of Petroleum Operations in to General Reserve Account.
the business of Ravva Oil & Gas Field for computation of Cost Petroleum and PTRR. The This change in Accounting Policy has no impact on the Profit for the Year.
Dispute was referred to an International Arbitration in accordance with the provisions of 5. During the year certain revalued assets have been disposed off. As required by Accounting
the Ravva PSC. Vide the interim award dated 31st March 2005, the Tribunal has upheld the Standard - 10 “Accounting for Fixed Asset”, loss on disposal of such assets to the extent of
Company’s claims stated in (i) and (v) above whereas the claim of the Company stated in Rs.0.98 million (Previous year Rs.13.64 million) is directly charged to Revaluation Reserve relating
(ii), (iii) and (iv) above were rejected by the Tribunal. to the increase which was previously recorded as a credit to Revaluation Reserve.
While accepting the Interim Award, the Company computed and submitted the calculation 6. Capital Work in Progress includes advances for capital assets Rs.646.40 million (Previous year
on 31st May 2005 to Government of India (GOI) indicating the amount payable by the Rs. 145.58 million), Interest and other finance charges capitalised during the year Rs.582.23
Company after applying the said Arbitration Award at US$ 27.02 million equivalent to Rs. million (Previous year Rs. 408.81 million) and is net of decrease in rupee liability due to Fluctuation
1,081.88 million, which was not accepted by GOI and it claimed that the Company needs to in Exchange Rate Rs 678.89 million (Previous year Rs. 69.64 million).
pay US$ 43.72 million equivalent to Rs. 1,750.55 million and interest thereon applying the 7. A) The Company had, during the year 2006, issued
same Arbitration Award. The Company filed a supplementary application on 7th July 2005 a) 90,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on 7th March,
followed by an amendment application on 8th August 2005 with the Arbitration Tribunal 2011 [outstanding Bonds 89,000 (Previous year 90,000)].
with a prayer to determine the correct amount payable to GOI as well as to determine the i The bonds are convertible at the option of the bondholders at any time on and after
interest, if any, payable on the same to GOI. Pending the final decision of the Hon’ble 20th March 2006 upto the close of business on 28th February, 2011 at a fixed
Arbitral Tribunal, the Company has accounted for and paid the sum of US$ 43.72 million exchange rate of Rs.44.145 per 1 US$ and at initial conversion price of Rs.545.24
equivalent to Rs. 1,750.55 million to GOI on ad hoc basis. per share being at premium of 15% over the reference share price. The conversion
The GOI has further filed an affidavit on 10th May 2005 before the Kuala Lumpur High price shall be adjusted downwards in the event that the average closing price of
Court in Malaysia challenging the Arbitration Award and praying for setting aside the Partial shares for 15 consecutive trading days immediately prior to the reset date is less
Award dated 31st March 2005 only in respect of ONGC Carry Issue whereas the Company than conversion price, subject to a floor price of Rs. 410/- as adjusted in accordance
has challenged the jurisdiction of the Kuala Lumpur High Court and therefore the with the anti-dilution provisions.
maintainability of such an appeal at that Court. ii The Bonds are redeemable in whole but not in part at the option of the company on
b) There is a dispute between the Company and GOI with regard to the computation of interest or after 7th February, 2009 but prior to 28th February, 2011 if aggregate value on
on delayed payment of profit petroleum to the extent of US$ 67,636 equivalent to Rs. 2.71 each of 30 consecutive trading days ending not earlier than 14 days prior to the date
million. The Company has filed an Interim Application on 7th July 2005 before the Hon’ble upon which notice of such redemption is given was at least 130% of the accreted
Arbitral Tribunal for final determination of such amount, pending which no provision has principal amount.
been made by the Company. iii The Bonds are redeemable at maturity date on 7th March, 2011 at 116.738% of its
c) There is a dispute regarding the rate of conversion from US$ into Indian rupees applicable principal amount, if not redeemed or converted earlier.
to the Nominees of the GOI for the purpose of payment of amount of the invoices for sale b) 105,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on 25th July
of the Crude Oil by the Company under the Ravva PSC. The dispute was referred to an 2011.[outstanding Bonds 104,901 (Previous year 105,000).]
International Arbitration in accordance with the provisions of the Ravva PSC. Vide the i The bonds are convertible at the option of the bondholders at any time on or after
interim award dated 31st March 2005, the Tribunal has partly upheld the Company’s claim. 2nd September 2006 until 18th July 2011 except for certain closed periods, at a
While accepting the Award, the Company has worked out and submitted a computation on fixed exchange rate of Rs.46.318 per 1 US$ and at initial conversion price of Rs.511.18
30th June 2005 to GOI indicating the amount receivable at Rs.121.43 million being the per share being at premium of 22% over reference share price. The conversion price
amount short paid by GOI nominees up to June 19, 2005 and interest thereon also calculated shall be adjusted downwards in the event that the average closing price of shares for
up to 19th June 2005.The Company further vide its letter dated 22nd August 2005 updated 15 consecutive trading days immediately prior to the reset date is less than conversion
its claim indicating the total amount receivable from GOI Nominees at Rs.124.42 million price, subject to a floor price of Rs. 410/- as adjusted in accordance with the anti-
being the amount short paid by GOI nominees up to 31st July 2005 and interest thereon dilution provisions.
also calculated up to 31st July 2005. However, GOI and the nominees of GOI have rejected ii Redeemable in whole but not in part at the option of the Company on or after 24th
the computation and claim made by the Company. The Company has filed a supplementary August 2009, if aggregate value on each of 30 consecutive trading days ending not
application on 7th July 2005 and an amendment application on 8th August 2005 with the
earlier than 14 days prior to the date upon which notice of such redemption is given
Arbitration Tribunal with a prayer to determine the correct amount payable by GOI/its
was at least 130% of the accreted principal amount.
Nominees as well as to determine the interest, if any, payable on the same. The GOI has
iii Redeemable at maturity date on 25th July, 2011 at 127.65% of its principle amount,
filed an Original Miscellaneous Petition (OMP) 329 of 2006 dated 20th July 2006 before
if not redeemed or converted earlier.
Hon’ble Delhi High Court challenging the award in respect of this Dispute. Another OMP
B) During the year, the holders of 1099 Bonds have exercised their option and have converted
223 of 2006 dated 9th May 2006 has been filed by GOI’s nominees HPCL and BRPL in the
the Bonds into Equity Shares at the fixed rate of exchange. In view of the above and
Hon’ble Delhi High Court challenging the Partial Award dated 31st March 2005 in respect
considering the uncertainty of the number of bond holders exercising the option of
of Conversion/Exchange Rate Matter. Both OMP 223 of 2006 are presently sub-judice
conversion at the fixed exchange rate and uncertainity of foreign exchange rate prevailing
before the Hon’ble Delhi High Court. The GOI nominees continue to make payments at the
on the dates of redemption, a provision of Rs 1,023.91 million being the amount of foreign
exchange rate without considering directive from the Hon’ble Arbitral Tribunal in this regard.
exchange fluctuation gain on FCCB during the year, has been made in the accounts in
d) GOI has filed OMP 255 of 2006 dated 30th May 2006 before the Hon’ble Delhi High Court
accordance with the requirement of Accounting Standard 29-Provisions, Contingent
under section 9 of the Arbitration and Conciliation Act for change of situs of arbitration
from London (U.K.) to Kuala-Lumpur (Malaysia). GOI has challenged London as the Liabilities and Contingent Assets.
permanent seat of arbitration for resolution of disputes under the Ravva PSC and has C) Subsequent to the year end, 85,250 Bonds have been converted into 8,339,350 equity
claimed for declaration of Kuala-Lumpur as the permanent seat of arbitration whereas the shares of Rs.10/- each on exercise of the option by the bond holders.
Company honours the award dated 15th November 2003 of the Hon’ble Arbitral Tribunal, 8. The Company has made a provision of Rs.1,231.70 million (Previous year Rs.818.00 million)
passed with mutual consent of both the GOI and the Company, permanently fixing the seat towards Current Income Tax, after taking into consideration, the benefits admissible under the
of Arbitration at London in respect of disputes stated in (a),(b), and (c) above. The Hon’ble provisions of the Income Tax Act,1961 and the same is, in the opinion of the Management,
Arbitral Tribunal vide its letter dated 28th March 2007 has indicated that it shall contiune adequate. The Company has also made a provision of Rs. 1.00 million (Previous year Rs.1.00
with the arbitration proceedings, in respect of the disputes referred above, after receiving million) towards Wealth Tax.
the judgement of the Hon’ble Delhi Court in OMP 255 of 2006. As at As at
e) In respect of the Disputes stated in (i) and (ii) of (a) above, the GOI has vide its letter dated 30th Sept., 2007 30th Sept., 2006
3rd November 2006 now raised a collective demand of Rs. 334.13 Million on account of (Rs. In Million) (Rs. In Million)
additional profit petroleum payable and interest on delayed payments of profit petroleum 9. The major components of deferred tax liabilities/
calculated up to 30th September 2006 pursuant to the Partial Arbitral Award dated 31st assets are as under:
March 2005 in the Dispute stated above at (a) and Interim Award dated 12th February A. Deferred Tax Liabilities
2004 and Partial Award dated 23rd December 2004 in the Dispute stated above at (b). The Related to Depreciation on Fixed
Company has disputed such demand and is instead seeking refund of USD 16.70 Million Assets & amortisation 5,292.65 2,798.13
equivalent to Rs. 668.67 million excess paid by the Company to the GOI with interest 5,292.65 2,798.13
thereon.
B. Deferred Tax Assets
Any further sum required to be paid or returnable in respect of dispute above at (a) to (e)
i) Related to Unabsorbed Depreciation and
in accordance with the determination of the amount by Hon’ble Arbitral Tribunal/High
Business Loss 651.73 1,139.23
Courts in this behalf shall be accounted for on the final outcome in this regard.
3. Estimated amount of contracts remaining to be executed on Capital account and not provided for ii) Expenses charged in the financial
(net of advances) Rs.623.50 million (Previous year Rs. 37.80 million). statements but allowable as deduction in
4. The gross block of fixed assets includes Rs.9,244.75 million (Previous year Rs. 9,245.73 million) future years under the Income Tax Act, 1961 19.63 21.30
on account of revaluation of fixed assets carried out in the past on 1st April 1998 and 1st October iii) Diminution in value of investments charged
2002. The additional depreciation consequent upon revaluation of fixed assets is being charged in Profit & Loss Account 54.84 40.74
to Profit and Loss account. Hitherto, an amount equivalent to the said additional depreciation iv) Tax credit available u/s 115JAA 1,011.88 -
was being withdrawn from General Reserve and credited to Profit and Loss Account. From this v) Other 975.57 -
year, the Company has changed this accounting policy and the amount equivalent to the such 2,713.65 1,201.27
additional depreciation is being withdrawn from Revaluation Reserve and credited to the Profit
Net Deferred Tax Liability 2,579.00 1,596.86
and Loss Account.

27
 VIDEOCON INDUSTRIES LIMITED
10. Joint Venture Disclosure: For the For the
Unincorporated Joint Venture year ended year ended
a) Ravva Oil & Gas Field: 30th Sep, 2007 30th Sep, 2006
The Production Sharing Contract (PSC) in respect of Ravva Oil and Gas Field was entered (Rs. In Million) (Rs. In Million)
into on 28th October 1994 (Effective Date) between the President of India on behalf of the
Government of India and contractor parties viz. Oil and Natural Gas Corporation Ltd, erstwhile Net Profit attributable to Equity Shareholders 8,544.50 8,149.42
Petrocon India Limited (now amalgamated with the Company), Cairn Energy India Pty excluding exceptional Items
Limited and Ravva Oil (Singapore) Pte. Ltd. The contractor parties have pursuant to the Add : Changes (net) Related to FCCBs 22.30 -
PSC, entered into a Joint Operating Agreement on the Effective Date. Cairn Energy India Adjusted Net Profit for Diluted EPS 8,566.80 8,149.42
Pty Ltd. is the Operator. The participating interest of the Company in the said PSC is 25%. ii. Weighted Average number of equity shares
b) The Consortium comprising the Company, Oilex NL Australia, GAIL India Ltd., Hindustan for Basic EPS 221,019,058 220,986,249
Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. has been awarded the Weighted Average number of equity shares
Block #56, on the Eastern Plank of the Central Salt Producing Oil Field in Oman. The for Diluted EPS 239,963,551 220,986,249
Exploration Production Sharing Agreement and Joint Operating Agreement has been iii. Basic Earnings per Share before &
executed on 28th June, 2006. The exploration drilling would be commenced after the after exceptional items Rs. 38.66 Rs. 36.88
acquisition of additional seismic data. The Participating interest of the Company in the said Diluted Earnings per Share before &
venture is 25%. The Capital Commitments of the Company based on estimated minimum aftter exceptional items Rs. 35.70 Rs. 36.88
work programme for first exploration period of three years in relation to its participating iv. Reconciliation of weighted average Numbers of
interest is Rs. 251.04 million (Previous year Rs.344.43 million). Equity Shares outstanding during the period
c) Great Artesian Oil and Gas Ltd (GOG) holds 100% of EPP 27 offshore Otway Basin, South For Basic Earning Per Share 221,019,058 220,986,249
Australia which is in year 6 of the permit term. The Company, Oilex NL, Gujarat State Add : Adjustment on account of FCCBS 18,944,493 -
Petroleum Corporation Ltd. and GOG have entered into Farm-in agreement and Joint For Diluted Earning Per Share 239,963,551 220,986,249
Operating Agreement in February, 2006.The acquisition of 2D Seismic Data and drilling of
14. The Company has invested an amount of Rs. 719.11 million in units of mutual funds out of which
one exploration well is in progress. The participating interest of the Company is 20%. The
investments to the extent of Rs. 550.20 million have been earmarked against provision for
minimum work programme proposed in the bid application for seismic survey, data
abandonment cost included under the head ‘Other Liabilities’ in Schedule 8.
processing and drilling of one exploration well involves capital commitment in relation to
15. a) The Financial Institutions have a right to convert, at their option, the whole outstanding amount
its participating interest of Rs. 171.64 million (Previous year Rs.194.53 million).
of term loans or a part not exceeding 20% of defaulted amount of loan, whichever is lower,
d) The Consortium comprising the Company, Oilex NL, Australia, Gujarat State Petroleum
into fully paid up equity shares of the Company at par on default in payments / repayments of
Corporation Ltd, Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation
three consecutive installments of principal and / or interest thereon or on mismanagement of
Ltd. has been awarded a Block WA-388-P for a term of 6 years from Government of Western
the affairs of the Company.
Australia. Joint Operating Agreement has been signed by all of Joint venture parties in
b) The Financial Institutions have a right to convert at their option the whole or a part of
March 2007. The acquisition of Seismic Data is in progress. The participating interest of
outstanding amount of Preference Shares, into fully paid up equity shares of the Company as
the Company is 20%. The Capital Committments of the Company based on six year work
per SEBI guidelines, on default in payment of dividend or a default in redemption of Preference
program in relation to its participating interest is Rs.163.30 million (Previous year
Shares or any combination thereof.
Rs. NIL).
16. The Balances of some of the Debtors, Creditors, Deposits, Advances and Other Current Assets are
e) The Consortium comprising the Company and Bharat Petro Resources Limited (BPRL), a
subject to confirmation.
wholly owned subsidiary of Bharat Petroleum Limited, have entered into an agreement
17. Funds mobilised by issue of Foreign Currency Convertible Bonds have been utilised for the object
with EnCana Corporation and 749739 Alberta Limited (“Vendors”) for purchase from
of the issue i.e. for expansion of glass shell manufacturing facilities, expansion of consumer
Vendors, 100% equity of EnCana Brasil Petróleo Limitada, (EBPL) for a consideration of
electronics and household appliances business and global CPT business.
approximately US$ 165 million. The effective date of the agreement has been agreed to be
18. In the opinion of the Board, the value of realisation of Current Assets, Loans and Advances in the
January 01, 2007. Closing of the transaction is subject to normal closing conditions and
ordinary course of the business would not be less than the amount at which they are stated in the
regulatory approvals. EBPL has interests in four concessions with ten deep water offshore
Balance Sheet and the provision for all known and determined liabilities is adequate and not in
exploration blocks in Brazil. The Company and BPRL are equal partners in the consortium.
excess of the amount reasonably required.
At present the regulatory authorities in Brasil are reviewing the application of EBPL for
For the For the
granting its approval for change of control of EBPL.”
year ended year ended
The Financial Statements reflect the share of the Company in the assets and the liabilities
30th Sept., 2007 30th Sept., 2006
as well as the income and the expenditure of Joint Venture Operations on a line by line
(Rs. In Million) (Rs. In Million)
basis. The Company incorporates its share in the operations of the Joint Venture based on
statements of account received from the Operator. The Company has, in terms of Accounting 19. Auditors’ Remuneration: (Including Service Tax)
Policy No. A-7 above, recognised abondonment costs based on the latest technical a) Audit Fees 5.06 4.77
assessment of current costs available with the Company as cost of producing properties b) Tax Audit Fees 1.24 1.12
and has been providing Depletion thereon under ‘Unit of Production’ method as part of c) Out of Pocket Expenses 0.18 0.18
Producing Properties in line with Guidance Note on Accounting of Oil and Gas Producing d) Other Services 1.85 1.68
Activities issued by the Institute of Chartered Accountants of India. 8.33 7.75
11. The company has kept the investment activities separate and distinct from the normal business.
Consequently, all the income and expenditure pertaining to investment activities have been 20. a) Sundry Creditors include Rs. 62.51 million (previous year Rs.76.88 million) due to Small
allocated to the Investments & Securities Division and the income/loss after netting off the related Scale Industrial undertakings to the extent such parties have been identified from available
expenditure has been shown as “Income/(Loss) from Investments & Securities Division” under information. The names of small scale industrial undertakings to whom amounts payable are
outstanding for more than 30 days are -
“Other Income”.
Able Moulders, Abs Electroplaters Pvt. Ltd, Acropolis Industries, Aditya Air Products, Advance
For the For the Marks & Labels Pvt. Ltd, Akanksha Packs, Akshay Flexi Hoses, Akshay Industries, Akshay
year ended year ended Udyog, Amitron, Amtex Industries, Annpurna Electronics &Services Ltd, Any Graphics Pvt.
30th Sept., 2007 30th Sept., 2006 Ltd, Arasana Industries, Arihant Industries, Atul Fasteners Ltd, Aurangabad Plastics Pvt Ltd,
(Rs. In Million) (Rs. In Million) Auto Strap India, Belting Enterprises Pvt Ltd, Blue Star Engineers, Box Boarad Packaging,
Chirag Plast, Clad Metal India Pvt Ltd, Combined Engineers, Crystal India, Dhiraj Industries,
12. The Income from Investments and Securities Dolsun Containers Pvt. Ltd, Ellora Rubber, Essdee Industries, Gujarat Engineering Works,
Division includes: Gujarat Industries, Gurudatta Industries, H V Equipments Pvt Ltd, Harsh Packaging, Hemant
i. Dividends: Mechanical Industries, Heritage Rubbers, Ideal Sealtape Pvt. Ltd, Indira Damper Industries,
on Long Term Investments 15.71 15.35 Kaithi Plastic, Komal Enterprises, Labddhi Polyplast Engineers, Machhar Packging Services
Pvt. Ltd., Merrygold Enterprises, Metronics India, Minerva Engg.Tools Company, Mittal
on Current Investments 1.28 -
Pigments Pvt. Ltd.,, Multicolor Steels (India) Pvt Ltd, Noida Electronics, Novel Packaging
ii. Debenture/Bond - Interest/Premium: Industrie, Nutech Sintered Products, Om Sai Decoplast Pvt. Ltd, P.R.Packing Service, P.Yesh
on Long Term Investments (TDS Rs.0.17 Industries, Packprint Carton Industries, Paper Combines, Patkar Extrusions Ltd, Patrikar &
million (Previous year Rs.3.19 million)) 8.03 14.20 Sons Auto, Plasto Pack (India), Popular Engineering Works, Positronics Control Systems
iii. Gain / (Loss) on Sale of Investment: Pvt Ltd, Precision Metal Plast, Premier Seals(India) Pvt., Progressive Polymers, R.P.
Long Term 492.11 172.12 Engineers, Raiyani Technofab, Rajeshwari Enterprises, Rajmudra Offset, Royal Pack
Current 254.78 (14.77) Industries,, S. V. S. Wire Pvt. Ltd., Saikrupa Enterprises, Sapna Packaging, Saptagiri Industries,
Sara Industries, Savera Press Comps Pvt Ltd (Jw), Selwel Enterprises P. Ltd., Servilink
13. Earnings Per Share:
Engineers Pvt Ltd, Shardul Fasteners., Shital Tyre Retraders, Shree Ashapuri Saw Mill, Shree
i. Net Profit attributable to Equity Shareholders Udyog, Silverline Metal Engg. Pvt Ltd-A, Sjs Plastiblends Pvt.Ltd., Sudarshan Plast, Sun
Net Profit as per Profit & Loss Account 8,552.19 8,185.02 Graphics, Sun Polymers, Supreme Enterprises, Surya Springs Private Ltd, Svs Wires Private
Add: Excess provision of Income Tax for Limited,Unit-Ii, Swaroop Decore, Swaroop Techno Components Pvt. Ltd, Technoseal Rubber
earlier year written back 35.37 3.02 , Technova Tapes (I) P, Ultima Plastic Industries, Vabros (I) Pvt. Ltd., Vinod Engineers, Vishwas
8,587.56 8,188.04 Moulders,, Vrc Plastomould(I) P, Wendt (India) Limited, Yash Industries, Yashoda Industries.
Less : Dividend on Preference Shares b) The Company is in the process of compiling the additional information required to be disclosed
under the Micro, Small Enterprises Development Act 2006. The management does not envisage
including Tax on the same 43.06 38.62
any material impact on the financial statement in this regard which has been relied upon by
Net Profit attributable to Equity Shareholders 8,544.50 8,149.42 the auditors.
including exceptional Items 21. There are no amounts due to be credited to Investor Education & Protection Fund.
Less : Exceptional Items - -

28
 ANNUAL REPORT 2006-07
22. Related Party Disclosures: 23. The Company has prepared the Consolidated Financial Statements as per Accounting Standard
As required under Accounting Standard 18 on “Related Party Disclosure”, the disclosure of (AS) 21 and accordingly the segment information as per AS-17 “Segment Reporting” has been
transaction with related parties as defined in the Accounting Standard are given below:
presented in the Consolidated Financial Statements.
a) List of Related Parties:
24. Loans and Advances in the nature of Loans given to Subsidiaries and Associate etc.
i) Subsidiary Companies:
- Paramount Global Limited A. Loans and Advances in the nature of Loans :
- Videocon Global Limited (Rs. in Million)
- Mars Overseas Limited (up to 26th September 2007) Sr. Name of the 30.09.2007 30.09.2006 Maximum Balance
- Sky Billion Trading Limited (w.e.f.21st November 2006)
No. Company During the year
- Videocon (Mauritius) Infrastructure Ventures Limited
- Middle East Appliances LLC 1 Paramount Global Ltd. Subsidiary 1,467.61 828.61 2,157.85

- Powerking Corporation Limited 2 Eagle Corporation Subsidiary 830.55 - 850.55

- Gajanan Electronics & Home Appliances Private Limited (up to 26th September 2007) 3 Videocon Global Ltd. Subsidiary - 443.87 443.87
- Mayur Household Electronics Private Limited Total 2,298.16 1,272.48
- Godavari Consumer Electronics Appliances Private Limited Notes :-
- Venus Corporation Limited
1. Loans and Advances shown above, to subsidiaries fall under the category of ‘Loans &
- Eagle Corporation Limited
Advances in nature of Loans where there is no repayment schedule’.
- Global Energy Inc (w.e.f.10th October 2006)
2. No interest is chargeable on Loans and Advances to above Subsidiaries, except Videocon
- Videocon Display Research Co.Ltd. (w.e.f.9th March 2007)
- Technologies Display Americas LLC * Global Ltd.
- Technologies Displays Mexicana S.A. de.CV * ( Formerly Thomson Display Mexicana B. Investment by the loanee in the shares of the Company.
S.A. de.CV)
None of the loanees have made investments in the shares of the Company.
- VDC Technologies S.P.A. *
25. Reserves:
- TTD International S. A. (Formerly Thomson Tubes & Displays S.A.) *
Share of the Company in Ravva Oil & Gas field (Unincorporated) Joint Venture remaining reserves
- TDP S.P.z.o.o (Formerly Thomson Displays Polska S.P.z.o.o.) *
- TTD International Ltd ( w.e.f.30th January 2007 ) * on proved and probable basis (as per Operator’s estimates)
- TGDC Guandong Displays Co. Ltd.* (Formerly Thomson Guandong Displays Co. Ltd.)
- Thomson Display Technology Research & Development Co. Ltd.* Particulars Unit of measurement As on As on
- VDC Technologies Deutschland GmbH ** (w.e.f. 14th September 2007)
30.09.2007 30.09.2006
* Subsidiaries of Eagle Corporation Ltd.
** Subsidiary of VDC Technologies SPA Crude Oil Million Metric Tonnes 2.19 2.77
ii) Associate and Joint Venture: Natural Gas Million Cubic Metres 490.81 678.36
- Ravva Oil & Gas Field (unincorporated) Joint Venture - Participating Interest 25%
-WA-388-P Joint Venture - Participating Interest 20% 26. As required by Accounting Standard 29 “Provisions, Contingent Liabilities and Contingent Assets”
-Block 56 Venture Oman - Participating Interest 25% issued by Institute of Chartared Accountants of India, the disclosure with respect to provisions
-EPP27 Joint Venture - Participating Interest 20% are as follows:
-Evans Fraser & Co. (India) Limited - Associate As on 30.09.2007
iii) Key Management Personnel:
Exchange Rate Warranty &
- Mr. Venugopal N. Dhoot - Chairman & Managing Director
Fluctuation Expenses Maintenance
- Mr. Pradeepkumar N. Dhoot - Whole Time Director
Expenses
b) Transactions/outstanding balances with Related Parties:
The company has entered into transactions with certain related parties as listed below. The (Rs. in Million) (Rs. in Million)
Board considers such transactions to be in normal course of business:
a) Amount at the beginning of the year - 360.55
(Rs. In Million)
Subsidiary Associates/ Key Management b) Additional provision made during the year 1,023.91 371.23
Nature of Transaction Companies Joint Venture Personnel
Sale of Goods 27,085.95 c) Amount used - 351.14
(18,844.06)
Purchase of Goods 702.24 d) Unused amount reversed during the year - -
(608.39)
Interest Received 15.70 e) Amount at the end of the year 1,023.91 380.64
(-)
Investments /Share Application Money 27. i) Future obligation of the Company for assets taken on all leases entered into before 1st
During the year 85.66
(13,575.75) April 2001 is Rs. Nil
Advances/Loans given 2,039.45 - ii) Subsequent to 1st April, 2001 the Company has entered into operating lease agreements
(421.44)
Advances/Loans paid - for “Cars” to be used by employees for a period of 4 years. The lease rentals charged
(1,582.36)
Transaction with Joint Venture during the year are Rs. 1.70 million.
- Contribution towards share of expenditure 1,735.31 iii) The maximum obligation on long-term non-cancellable operating leases entered on or
(470.21)
Outstanding as at 30.09.2007 after April 1 , 2001 payable as per the rentals stated in respective agreements are as follows:

Trade Receivables 7,490.12 ( Rs. in Million)

(2,769.79)
Trade Payables 583.39 Minimum Lease Payments As at 30.09.07
(345.86)
Advances/Loans given / (returned) (Net) 2,298.16 52.55 Not later than 1 year 1.02
(1,272.48) (74.59)
Investments/Share Application Money 14,516.78 40.63 Later than 1 year and not later than 5 years 0.03
(14,477.55) (40.63)
Receivable from unincorporated Joint Venture 35.11 More than 5 year NIL
(2.18)
Payable to unincorporated Joint Venture 2.14 Total 1.05
(0.29)

29
 VIDEOCON INDUSTRIES LIMITED

30th Sept., 2007 30th Sept., 2006

Unit Quantity Rs. In Million Quantity Rs. In Million
28. Additional Information pursuant to the provisions of paragraphs
3,4C,4D of part II of Schedule VI to the Companies Act,1956.
QUANTITATIVE INFORMATION:
I. Production:
(Including Goods Manufactured through third parties and excluding
goods manufactured for others on job basis)
a) Crude Oil MT 602,649 610,942
b) Natural Gas Cu.Mtr 199,822,632 214,142,431
c) TV Sets including Assemblies and sub assemblies thereof and Glass Shells Nos 31,011,900 27,919,267
d) Audio, Video and other Electricals and Electronic Appliances,
including Assemblies and Sub-Assemblies thereof Nos 4,803,885 4,022,326
e) Air Conditioners Nos 359,375 304,370
II. Stocks of Finished Goods at Close:
a) Crude Oil MT 19,342 88.43 29,569 84.53
b) Natural Gas Cu.Mtr - - - -
c) TV Sets including Asemblies and sub assemblies thereof and Glass Shells Nos 985,691 1,483.76 1,346,583 1,985.83
d) Audio, Video and other Electricals and Electronic Appliances,
including Assemblies and Sub-Assemblies thereof Nos 238,247 1,173.25 226,214 748.33
e) Air Conditioners Nos 39,072 515.88 23,221 280.85
TOTAL 3,261.32 3,099.54
III. Stocks of Finished Goods at Beginning: (including addition on Amalgamation)
a) Crude Oil MT 29,569 84.53 10,411 27.57
b) Natural Gas Cu.Mtr. - - - -
c) TV Sets including Asemblies and sub assemblies thereof and Glass Shells Nos 1,346,583 1,985.83 958,394 1,378.25
d) Audio, Video and other Electricals and Electronic Appliances,
including Assemblies and Sub-Assemblies thereof Nos. 226,214 748.33 266,301 804.48
e) Air Conditioners Nos 23,221 280.85 4,506 57.79
TOTAL 3,099.54 2,268.09
IV. Sales/Services Rendered (Including Duty Drawback and
Cash Compensatory support )
a) Crude Oil MT 612,876 13,056.67 591,784 13,299.91
b) Natural Gas Cu.Mtr. 181,991,600 1,045.24 196,648,932 1,094.23
c) TV Sets including Asemblies and sub assemblies thereof and Glass Shells Nos 31,372,792 45,608.49 27,531,078 39,472.36
d) Audio, Video and other Electricals and Electronic Appliances,
including Assemblies and Sub-Assemblies thereof Nos 4,791,852 21,275.12 4,062,413 17,561.73
e) Air Conditioners Nos 343,524 5,560.21 285,655 4,324.78
f) Other Sales & Service Income 556.85 50.31
TOTAL 87,102.58 75,803.32
V. Flared/Consumed/Normal Loss
a) Natural Gas Cu.Mtr. 17,831,032 17,493,499 -
VI. Raw Material Components and Spares Consumption including for
products manufactured through third parties
a) Printed Circuit Board (All types) Nos 7,540,602 5,823.81 7,103,567 5,039.51
b) Active & Passive Components */** 14,910.42 12,902.40
c) Plastic and Wooden Parts Nos 9,341,424 20,121.92 9,159,303 17,412.05
d) Other Raw Materials ** 8,443.92 7,306.78
TOTAL 49,300.08 42,660.74
* Inclusive of job charges paid
** It is not practicable to furnish quantitative information of components consumed in view of considerable number of items, of diverse in size & number
Note: The industrial licensing has been abolished in respect of the products of the Company.
30th Sept., 2007 30th Sept., 2006
Percentage Rs. In Million Percentage Rs. In Million
VII. Value of Imported and Indigenous
Raw Materials, Components and Spares Consumed *
a) Imported 19.26 9,495.19 16.47 7,027.05
b) Indigenous 80.74 39,804.89 83.53 35,633.69
TOTAL 49,300.08 42,660.74
* Includes job charges paid
30th Sept., 2007 30th Sept., 2006
Rs. In Million Rs. In Million
VIII. CIF Value of Imports, Expenditure and Earning in Foreign Exchange:
a) C.I.F. Value of Imports
Raw Materials 7,152.70 9,231.95
Capital Goods (including advances) 590.20 1,535.75
b) Expenditure incurred in Foreign Currency: (on payment basis)
for Cash Call paid to the Operator for the project 1,340.57 280.90
Technical Know How Fees - 6.74
Interest & Bank Charges 743.42 391.40
Royalty 63.25 103.64
Travelling 32.72 43.49
Dividend- 631 shareholders holding 49,346,401 Shares
(Previous year – 760 shareholders holding 49,206,206 shares) 172.71 123.02
Others 41.20 403.03
c) Other Earning/Receipts in Foreign Currency:
F.O.B. Value of exports (on receipt basis) 4,364.32 4,292.02
Interest 16.92 234.51
Others - 51.79
29. Figures in respect of previous year have been regrouped and recasted wherever necessary to make them comparable with those of current year.

30
 ANNUAL REPORT 2006-07

32. Balance Sheet Abstract and Company’s General Business Profile:

I. Registration Details Application of Funds

Registration No. 103624 Net Fixed Assets 53,194,718
Balance Sheet Date 30.09.2007 Investments 20,924,970
State Code 11 Net Current Assets 37,839,486
II. Capital Raised During the year (Amounts Rs. in Thousand) IV. Performance of Company (Amounts Rs. in Thousand)
Public Issue - Turnover 84,517,865
Rights Issue - Total Expenditure 73,688,908
Bonus Issue - Profit Before Tax 10,828,956
Private Placement 46,371 Profit After Tax 8,552,193
Amalgamation 4 Earnings Per Share in Rs. Rs. 38.66
Share Application Money - Dividend Rate % 35%
III. Position of Mobilisation & Deployment of Funds V. Generic Names of Three Principal Products of the Company
(Amounts Rs. in Thousand)
(As per monetary terms)
Total Liabilities 111,959,174
a) Item Code No. (ITC Code) 2709.00
Total Assets 111,959,174
Product Description Crude Oil and Natural Gas
Sources of Funds
b) Item Code No. (ITC Code) 8528.00
Paid-up Capital 2,669,538
Product Description Television
Share Capital Suspense -
c) Item Code No. (ITC Code) 8520.00
Reserves & Surplus 54,114,272
Product Description Tape Recorder
Deferred Tax Liability (Net) 2,578,996
d) Item Code No. (ITC Code) 85281008
Secured Loans 33,435,014
Product Description Glass Shell Panels & Funnels for
Unsecured Loans 19,161,354 C.P.T.

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

31
 STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956, RELATIING TO COMPANY’S INTEREST IN SUBSIDIARY COMPANIES
Statement of Subsidiaries of Videocon Industries Ltd.

1 Name of Subisdiary Gajanan Mayur Godavari Paramount Middle East Global Videocon Sky Billion Mars Videocon Venus Powerking Videocon Eagle
Electronics Household Consumer Global Ltd. Appliances Energy Display Trading Overseas Global Corporation Corporation (Mauritius) Corporation
& Supply Electronics Electronics LLc Research Co. Ltd. Ltd. Ltd. (up to Ltd. Ltd. Ltd. Infrastructure Ltd. (on
Pvt. Ltd. Appliances Appliances Inc (w.e.f 9th (w.e.f 21st 26th Sept., Ventures Ltd. Consolidated
(Up to 26th Pvt.Ltd. Pvt.Ltd. (w.e.f. 10th March 07) Nov., 06 07) Basis)
Sept., 2007) Oct. 06)

2 The financial year of the Subsidiary 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept. 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept.,
Companies ended on 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007

3 Holding Company’s Interest

No. of Shares held by Videocon Industries Ltd. 10,000 Equity 10,000 Equity 10,000 Equity 12,800,000 2,251,800 1,000 1,200 1,072,000 1,000,000 2,500 2,982 2,711 530,000 1,000
with its nominees in the subsidiaries at the end Shares of the Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Shares of
of the financial year of the Subsidiary face value of the face the face the face the face the face the face value the face the face the face the face the face the face the face
Companies Rs.10/- each value of value of value of value of value of of JPY value of value of value of value of value of value of value of
fully paid. Rs.10/- each Rs.10/- each US$1.00 each Oman Riyal US$1.00 50000 US$1.00 US$1.00 US$1.00 US$1.00 US$1.00 US$1.00 US$1.00
fully paid. fully paid. fully paid 1.00 each each fully each fully each fully each fully each fully each fully each fully each fully each fully
fully paid paid paid paid paid paid paid paid paid paid
Extent of the interest of Holding Company at the
end of financial year of the Subsidary Companies Nil 100% 100% 100% 100% 100% 100% 100% Nil 100% 100% 100% 100% 100%

4 The net aggregate amount of the Subsidiary

Companies Profit/(Loss) so far as it concerns the
members of the Holding Company

a Not dealt with in the Holding Company’s accounts :

i For the current financial period ended Rs. Rs. Rs. US$ (US$1,036,376) US$12,583/- (US$749,838) US$56,442/- US$10,106 US$ US$74,196/- US$5,541,654/- (US$ 7476/-) (US$61,212,032/-)
277,157/- 3,425,625/- 1,634,574/- 426,146/- in (In Rs. In Rs. (In Rs. In Rs. In Rs. 15,852,344/- In Rs. In Rs. (in Rs. (In Rs.
Rs.18,116,199/- 44,058,110/-) 534,788/- 3,911,091/-) 2,284,859/- 429,613/- in Rs. 3,154,201/- 235,585,115/- 317,817/-) 2,602,227,532/-)
673,910,084/-

32
ii For the previous financial years of the Rs. 235,561/- Rs.2,621,704/- Rs.1,180,597/- US$795,310/- 933/- Nil Nil Nil (US$ US$ (US$3, (US$9,406,093/-) (US$ 6,678/-) (US$11,
Subsidiary Companies since they became in Rs. in Rs. 46375/-) 9,631,748/- 189,080/-) (in Rs. (in Rs. 568,535/-)
the Holding Company’s subsidiaries 36,719,463/- 112,184/- (in Rs. in Rs. (in Rs. 434,279,314/-) 308,323/-) (in Rs.
2,141,134/-) 444,697,805/- 147,239,824/-) 534,119,261/-)

b Dealt with in Holding Company’s accounts :

i For the current financial period ended Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
ii For the previous financial years of the Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Subsidiary Companies since they became
the Holding Company’s subsidiaries
VIDEOCON INDUSTRIES LIMITED
 Statement pursuant to exemption received from Ministry of Company Affairs,under Section 212(8) of the Companies Act,1956 relating to Subsidiary Companies
(Rs.in Million)

Sr.No. Name of the Reporting Exchange Capital Share Reserves Total Total Investment Total Profit Provision Profit After Proposed Country
Subsidiary Company Currency Rate Application Assets Liabilities Other than Income Before For Taxation Dividend
Money Investment Taxation Taxation
in Subsidiary

1 Gajanan Electronics & Supply Pvt.Ltd.

(Up to 26th Sept.2007) INR 1.00 0.10 - 1.29 468.65 467.27 - 2705.42 0.40 0.12 0.28 - INDIA

2 Mayur Household Electronics

Appliances Pvt.Ltd. INR 1.00 0.10 - 9.76 5,900.86 5,890.99 - 19,143.48 4.99 1.56 3.43 - INDIA

3 Godavari Consumer Electronics

Appliances Pvt.Ltd. INR 1.00 0.10 1.55 4.43 4,070.37 4,064.30 - 13,445.50 2.37 0.73 1.63 - INDIA

4 Paramount Global Ltd. USD 40.04 512.51 - (150.88) 9,451.83 9,090.20 - 67.03 18.12 - 18.12 - HONGKONG

5 Middle East Appliances LLc RO 104.79 235.96 - (45.12) 692.61 501.76 528.68 (44.06) - (44.06) - SULTANATE
OF OMAN

6 Global Energy Inc (w.e.f.10th Oct. 2006) USD 40.04 0.04 11.97 (5.58) 21.23 14.80 - 20.78 0.53 - 0.53 - CAYMAN
ISLANDS

7 Videocon Display Research Co.Ltd. 100

(w.e.f. 9th March 2007) JYP 34.80 20.90 - (3.81) 168.38 151.29 - 156.00 (2.05) 1.86 (3.91) - JAPAN

8 Sky Billion Trading Ltd. (w.e.f. 21st Nov.2006) USD 40.04 42.92 - (13.36) 3,085.39 3,055.82 - 180.17 2.38 - 2.38 - HONGKONG

9 Mars Overseas Ltd. (up to 26th Sept. 2007) USD 40.04 - - - - - - 10.32 0.43 - 0.43 - CAYMAN
ISLANDS

10 Videocon Global Ltd. USD 40.04 0.10 - 1,030.13 5,789.55 4,759.32 - 1,574.06 673.91 - 673.91 - BRITISH
VIRGIN

33
ISLANDS

11 Venus Corporation Ltd. USD 40.04 0.12 - (124.72) 1,903.50 2,028.10 - 204.23 3.15 - 3.15 - CAYMAN
ISLANDS

12 Powerking Corporation Ltd. USD 40.04 0.11 - (255.42) 3,054.93 3,310.24 - 644.39 235.59 - 235.59 - CAYMAN
ISLANDS

13 Videocon (Mauritius) Infrastructure

Ventures Ltd. USD 40.04 21.22 - (1.69) 89.61 70.15 0.07 - (0.32) - (0.32) - MAURITIUS
ANNUAL REPORT 2006-07

14 Eagle Corporation Ltd.

( On Consolidated Basis) USD 40.04 0.04 13,957.71 17,611.13 49,259.71 17,713.35 22.52 31,362.72 (2,491.15) 111.08 (2,602.23) - CAYMAN
ISLANDS
 VIDEOCON INDUSTRIES LIMITED

AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

To
The Board of Directors
VIDEOCON INDUSTRIES LIMITED
We have audited the attached consolidated Balance Sheet of Videocon Industries Limited (the Company) and its subsidiaries as at 30th September, 2007 and
the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These consolidated
financial statements are the responsibility of the Company’s management and have been prepared by them on the basis of separate financial statements and
other financial information regarding components. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in India. These Standards require that we plan and perform the audit to obtain
reasonable assurance whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting frame work
and are free of material misstatements. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
consolidated financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not jointly audit the financial statements of the Subsidiaries, whose financial statements reflect total assets of Rs. 46,243.83 million as at 30th
September 2007 and total revenues of Rs. 69,886.79 million and cash flows amounting Rs. 1,712.98 million for the year ended on that date. These financial
statements have been audited by either of us singly or by other auditors whose reports have been furnished to us and our opinion, in so far as it relates to the
amounts included in respect of these entities, is based solely on the reports of those respective auditors.
We report that the consolidated financial statements have been prepared by the Company in accordance with the requirements of the Accounting Standard (AS)
21 on “Consolidated Financial Statements”, Accounting Standard (AS) 23 on “Accounting for Investments in Associates” and Accounting Standard (AS) 27
“Financial Reporting of Interest in Joint Ventures” issued by the Institute of Chartered Accountants of India and on the basis of the separate audited financial
statements of the Company, and its subsidiaries included in Consolidated Financial Statements.
On the basis of the information and explanations given to us and on the consideration of the separate audit report on individual audited financial statements of
the Company and its subsidiaries, we are of the opinion that the attached consolidated financial statements, read with the notes and the significant accounting
policies thereon, give a true and fair view in conformity with the accounting principles generally accepted in India:
a. in the case of the Consolidated Balance Sheet, of the state of affairs of the Company and its subsidiaries as at 30th September 2007;
b. in the case of the Consolidated Profit and Loss Account, of the consolidated results of operations of the Company and its subsidiaries for the year ended
on that date; and
c. in the case of the Consolidated Cash Flow Statement, of the consolidated cash flows of the company and its subsidiaries for the year ended on that date.

For KHANDELWAL JAIN & CO. For KADAM & CO.

Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U.S.KADAM

Partner Partner
Membership No.: 104180 Membership No.: 31055

Place: Mumbai
Date : 25th February, 2008

34
 ANNUAL REPORT 2006-07

CONSOLIDATED BALANCE SHEET AS AT 30TH SEPTEMBER, 2007

Particulars Schedule As at As at
No. 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)

I. SOURCES OF FUNDS
1. Share Holders’ Funds
a. Share Capital 1 2,669.54 2,668.46
b. Share Capital Suspense 1A – 0.004
c. Reserves & Surplus 2 51,187.97 47,293.91
d. Capital Reserve on Consolidation 15,486.57 15,578.90
2. Minority Interest 296.73 443.02
3. Share Application Money Pending Allotment 2,081.46 1.55
4. Deferred Tax Liability ( Net ) 2,579.13 1,531.46
5. Loan Funds
a. Secured Loans 3 45,090.45 46,294.35
b. Unsecured Loans 4 24,437.05 15,721.76
TOTAL 143,828.90 129,533.41

II. APPLICATION OF FUNDS

1. Fixed Assets 5
a. Gross Block 130,315.08 137,175.28
b. Less : Depreciation 55,823.92 67,459.08
c. Net Block 74,491.16 69,716.20
d. Producing Properties (Net) 650.55 505.17
75,141.71 70,221.37
2. Investments 6 6,525.13 3,398.82
3. Current Assets, Loans & Advances 7
a. Inventories 21,362.59 20,456.79
b. Sundry Debtors 26,095.37 33,748.08
c. Cash and Bank Balances 19,212.16 19,970.65
d. Other Current Assets 227.06 555.75
e. Loans and Advances 21,883.66 14,671.81
88,780.84 89,403.08
Less : Current Liabilities & Provisions 8
a. Current Liabilities 22,395.35 29,898.37
b. Provisions 4,223.43 3,591.54
26,618.78 33,489.91
Net Current Assets 62,162.06 55,913.17
4. Miscellaneous Expenditure 9 – 0.05
(To the extent not written off or adjusted)

Significant Accounting Policies and Notes to Accounts 16

TOTAL 143,828.90 129,533.41

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

35
 VIDEOCON INDUSTRIES LIMITED

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER, 2007
Particulars Schedule Year ended on Year ended on
No. 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)

I. INCOME
Sales / Income from Operations 125,971.29 129,633.71
Less : Excise Duty 4,249.40 3,617.97
Net Sales 121,721.89 126,015.74
Other Income 10 4,887.85 4,829.64
TOTAL 126,609.74 130,845.38
II. EXPENDITURE
Cost of Goods Consumed/Sold 11 77,065.08 81,657.38
Production & Exploration Expenses 12 9,569.75 9,583.21
Salaries, Wages & Employees’ Benefits 13 6,083.13 7,344.90
Manufacturing & Other Expenses 14 14,341.87 15,914.96
Interest & Finance Charges 15 4,565.37 3,414.46
Depreciation / Amortisation 6,921.99 5,965.04
Less : Transferred from General Reserve – 1,484.52
Less : Transferred from Revaluation Reserve 1,170.71 –
(Refer Note No B-3 of Schedule No.16) 5,751.28 4,480.52
TOTAL 117,376.48 122,395.43

III. Profit before Exceptional Items and Taxation 9,233.26 8,449.95

Add/(Less): Exceptional Items – 131.35
Add : Adjustment on disposal of Subsidiaries 18.01 147.09
Provision for Taxation
Current Tax 1,282.77 916.72
Deferred Tax 1,085.70 51.02
Fringe Benefit Tax 23.89 15.41
IV. Profit before Minority Interest and Share of Profit in Associate 6,858.91 7,745.24
Share of Profit in associate company 31.18 23.43
Minority Interest 100.77 (156.67)
Excess provision for Income Tax for earlier years written back 68.08 3.95
Add: Prior Period Adjustments – 307.43
V. Profit for the year 7,058.94 7,923.38
Balance brought forward 7,615.16 3,888.10
Add: Transferred from Debenture/Bonds Redemption Reserve 530.55 -
Addition/Adjustment on amalgamation – (1,763.16)

V. Balance available for appropriation 15,204.65 10,048.32

VI. APPROPRIATIONS
Debenture Redemption Reserve – 12.60
Proposed Dividend - Equity 803.02 773.45
Proposed Dividend - Preference 36.81 33.87
Corporate Tax on Proposed Dividend 142.73 113.23
Transfer to General Reserve 2,000.00 1,500.00
Transfer to Legal Reserve – 0.01
Balance Carried to Balance Sheet 12,222.09 7,615.16
TOTAL 15,204.65 10,048.32

Basic Earnings per Share (Nominal Value Rs.10/- per share) Rs. 31.75 Rs. 35.68
Diluted Earnings per Share (Nominal Value Rs.10/- per share) Rs. 29.33 Rs. 35.68
(Refer Note No.B-10 of Schedule No. 16)

Significant Accounting Policies and Notes to Accounts 16

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

36
 ANNUAL REPORT 2006-07

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH SEPTEMBER, 2007
Particulars As at As at Particulars As at As at
30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

A. CASH FLOW FROM OPERATING ACTIVITIES Less:

Net Profit before Tax 9,233.26 8,449.95 Increase in Fixed Assets including
Add: Captial Work-in-progress 13,607.99 37,046.25
a) Depreciation / Amortisation 5,751.28 4,480.52 (including net additions on amalgamation)
b) Interest and Finance Charges 4,565.37 3,414.46 Increase in Producing Properties 979.33 103.50
c) Producing Properties written off 833.95 177.36 Increase in Investments (Net) 3,166.61 771.61
d) Provision for Leave Encashment 13.51 78.86 (F) 17,753.93 37,921.36
e) Provision for Warranty and
Net Cash flow from Investing Activities G=(E-F) (13,734.02) (33,682.19)
Maintenance Expenses 15.39 296.09
f) Provision for Retirement Benefits (550.96) 1,612.03 C. CASH FLOW FROM FINANCING ACTIVITIES
g) Provision for Restructuring Cost 17.63 62.26 Increase in Share Capital including
h) Provision for Contingencies (60.19) 132.64 on account of amalgamation 1.08 603.20
i) Provision for Exchange Rate Fluctuation 1,023.91 - Increase in Share Capital Suspense on amalgamation - 0.004
j) Miscellaneous Expenditure written off 0.05 0.02 Increase in Share Application Money 2,079.91 (94.04)
k) Prior Period Adjustment - 307.44 Increase in Reserves on amalgamation - 1.50
l) Diminution in value of Investment 40.30 12.34 Securities Premium Received and
m) Share of Profit in Associate company 31.18 23.43 addition on amalgamation 47.66 93.42
n) Minority Interest for the year 100.77 (156.67) Increase in Capital Reserve on Consolidation (92.33) 15,578.90
Increase in Goodwill on Consolidation - 79.90
(A) 21,015.45 18,890.73
Transfer of Deferred Tax Liabilities on amalgamation - 0.50
Less:
Increase in Secured Term Loans from Banks (287.75) 8,647.23
a) Interest Received 551.24 599.32
Increase in Unsecured Loans 8,715.29 12,757.87
b) Write back of Diminution
Increase in Working Capital Loans from Banks 712.79 305.63
in value of Investment - 234.55
Increase in Revaluation Reserve - Associate Equity - 39.78
c) Income from Investment and
Increase in Revaluation Reserve 118.75 -
Securities Division 246.06 467.08
d) Exceptional Items - (131.35) (H) 11,295.40 38,013.89
e) Profit on Sale of Fixed Asset 1,294.54 2,248.65 Less:
Decrease in Share Capital Suspense
(B) 2,091.84 3,418.25
including on account of amalgamation 0.004 556.83
Cash flow from Operating Activities before
Decrease In Minority Interest 146.29 (443.02)
Working Capital changes (A-B) 18,923.61 15,472.48
Decrease In Foreign Currency
Adjustments (including on amalgamation) : Translation Reserve on Consolidation 1,088.28 (201.68)
a) Inventories (905.80) (11,609.46) Earlier period Loss of Subsidiary - 1.24
b) Sundry Debtors 7,652.71 (8,516.99) Amalgamation Adjustment Account - 1,763.17
c) Other Current Assets 328.69 (362.67) Redemption of Secured Non Convertible Debentures 1,628.94 1,878.79
d) Loans & Advances (7,211.82) 3,535.35 Decrease in Securities Premium on account of
e) Current Liabilities (7,500.43) 8,645.09 Share issue expenses and premium on
Cash flow from Operating Activities (C) 11,286.96 7,163.80 convertible bonds 126.79 145.23
Less : Income Tax Paid 1,104.10 531.74 Payment of Dividend 809.91 587.75
Less : Fringe Benefit Tax Paid 23.92 17.43 Corporate Tax on Dividend 113.23 82.35
Net Cash flow from Operating Activities (D) 10,158.94 6,614.63 Interest and Finance Charges Paid 4,565.37 3,414.46
B. CASH FLOW FROM INVESTING ACTIVITIES (I) 8,478.81 7,785.12
Sale of Fixed Assets (Net) 3,204.60 3,025.68 Net Cash flow from Financing Activities (J=H-I) 2,816.59 30,228.77
Interest Received 551.24 599.32
Net Change in Cash and Cash Equivalents (D+G+J) (758.49) 3,161.21
Adjustment on Disposal of Subsidiaries 18.01 147.09
Income from Investment and Securities Division 246.06 467.08 Opening Balance of Cash and Cash Equivalents 19,970.65 16,809.44
Closing Balance of Cash and Cash Equivalents 19,212.16 19,970.65
(E) 4,019.91 4,239.17

As per our report of even date

For KHANDELWAL JAIN & CO. For KADAM & CO. For and on behalf of the board
Chartered Accountants Chartered Accountants

SHIVRATAN AGARWAL U. S. KADAM V. N. DHOOT S. PADMANABHAN

Partner Partner Managing Director Director
Membership No.104180 Membership No. 31055

Place : Mumbai VINOD KUMAR BOHRA

Date : 25th February, 2008 Company Secretary

37
 VIDEOCON INDUSTRIES LIMITED

SCHEDULES TO BALANCE SHEET

As at As at As at As at
30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

SCHEDULE - 1 : SHARE CAPITAL Capital Subsidy

Authorised :
As per last Balance Sheet 5.50 5.50
500,000,000 (Previous year 500,000,000) 5,000.00 5,000.00
Equity Shares of Rs. 10/- each (B) 5.50 5.50
10,000,000 (Previous year 10,000,000) 1,000.00 1,000.00
Securities Premium Account
Redeemable Preference Shares of Rs. 100/- each
As per last Balance Sheet 25,565.06 25,574.77
6,000.00 6,000.00
Add : Adjusted during the year 47.66 93.42
Issued, Subscribed and Paid-up:
Equity Shares: Less : Share Issue Expenses - 4.90
221,093,701 (Previous year 220,985,833) Less : Premium payable on Redemption
Equity Shares of Rs. 10/- each fully paid up 2,210.94 2,209.86 of Convertible Bonds 88.76 98.23
Of the above:
a) 95,078 (Previous year 95,078) Equity Shares of 25,523.96 25,565.06
Rs.10/- each have been issued on conversion of Less : Call and/or allotment money in arrears - by others 16.90 16.90
Unsecured Optionally Convertible Debentures.
b) 156,438,326 (Previous year 156,437,910) Equity (C) 25,507.06 25,548.16
Shares of Rs.10/- each were allotted pursuant to Capital Redemption Reserve
amalgamations without payments being received As per last Balance Sheet 537.50 537.50
in cash.
c) 45,777,345 (Previous year 45,777,345) Equity (D) 537.50 537.50
Shares of Rs.10/- each were issued by way of Euro
Debenture/Bonds Redemption Reserve
issues represented by Global Depository Receipts
(GDR) at a price of US$ 10.00 per share (inclusive As per last Balance Sheet 2,343.05 2,330.45
of premium). Add/(Less) : Transferred from/(to) Profit & Loss Account (530.55) 12.60
d) 107,452 (Previous year NIL) Equity Shares of
(E) 1,812.50 2,343.05
Rs.10/- each have been issued on conversion of
1,099 Foreign Currency Convertible Bonds of US$ Legal Reserve
1000 each (inclusive of premium)
As per last Balance Sheet 0.01 -
Less : Calls in Arrears - by others 1.49 1.49
Add : Transferred from Profit and Loss Account - 0.01
(A) 2,209.45 2,208.37
(F) 0.01 0.01
Preference Shares:
4,523,990 (Previous year 4,523,990) 8% Redeemable Capital Reserve
Preference Shares of Rs.100/- each fully paid up, As per last Balance Sheet 1.52 0.02
redeemable at par in 3 equal installments on 1st October
Add : Additions on Amalgamation - 1.50
2011, 1st October 2012 and 1st October 2013. 452.40 452.40
76,870 (Previous year 76,870) 8% Redeemable (G) 1.52 1.52
Preference Shares of Rs.100/- each fully paid up,
Foreign Currency Translation Reserve
redeemable at par in 3 equal installments on 1st February
2012, 1st February 2013 and 1st February 2014. 7.69 7.69 As per last Balance Sheet 297.77 96.10

(B) 460.09 460.09 Add/(Less) during the year (1,088.28) 201.67

TOTAL (A+B) 2,669.54 2,668.46 (H) (790.51) 297.77

SCHEDULE - 1A : SHARE CAPITAL SUSPENSE General Reserve

Equity Shares - 0.004 As per Last Balance Sheet 1,659.72 1,385.16
NIL (Previous year 416) Equity Shares of Rs.10/- each
Add : Transferred from Revaluation Reserve 7,538.89 259.08
to be allotted to the shareholders of erstwhile EKL
Appliances Limited pursuant to its amalgamation with Add : Transferred from Profit & Loss Account 2,000.00 1,500.00
the Company. Less : Transferred to Profit & Loss Account - 1,484.52
TOTAL - 0.004
(I) 11,198.61 1,659.72

SCHEDULE - 2 : RESERVES & SURPLUS Profit & Loss Account

Revaluation Reserve As per Account annexed 12,222.09 7,615.16
As per last Balance Sheet 9,285.52 9,518.45
Add : Addition during the year 118.75 - (J) 12,222.09 7,615.16
Add : Adjustment for change in associate’s equity - 39.79
TOTAL (A to J) 51,187.97 47,293.91
Less : Deduction on account of Disposal/
Sale of Revalued Assets. 0.98 13.64
Less : Transferred to General Reserve 7,538.89 259.08
Less : Transferred to Profit & Loss Account 1,170.71 -
(Refer Note No.B-4 of Schedule No. 16)
(A) 693.69 9,285.52

38
 ANNUAL REPORT 2006-07
As at As at
30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)
SCHEDULE - 3 : SECURED LOANS
A. Non-Convertible Debentures 2,356.24 3,985.18
B. Term Loans from Banks & Financial Institutions 36,100.02 38,434.98
C. External Commercial Borrowings 3,803.80 1,662.12
D. Corporate Loan from Banks 82.23 215.02
E. Vehicle Loans from Banks 12.24 21.58
F. Finance Lease 47.66 -
G. Working Capital Loans From Banks 2,688.26 1,975.47
TOTAL 45,090.45 46,294.35
A. Non Convertible Debentures:-
Out of the Non Convertible Debentures, those to the extent of :
i. Rs. 613.73 million (Previous year Rs.920.18 million) are secured by assignment
of / fixed and floating charge on all moneys received/to be received by the
Company in relation to and from the Ravva Joint Venture, including all
receivables of the Company, subject to the charge in favour of the Joint Ventures
in terms of the Production Sharing Contract/Joint Operating Agreement in
respect of Ravva Joint Venture, to the extent necessary.
ii. Rs.640.81 million (Previous year Rs.933.10 million) are secured by first charge
on immovable and movable properties, both present and future, subject to
prior charge on specified movables created/to be created in favour of Company’s
Bankers for securing borrowings for working capital requirements, and ranking
pari passu with the charge created/to be created in favour of Financial
Institutions/Banks in respect of their existing and future financial assistance.
Also guaranteed by Mr. V. N. Dhoot and Mr. P. N. Dhoot.
iii. Rs.211.70 million (Previous year Rs.361.90 million) are secured by way of a
first charge on the entire immovable and movable properties of the Company
ranking pari passu with existing charge holders except prior charge on specified
movables created in favour of Company’s bankers for borrowings of working
capital and exclusive charge created on specific machinery financed/to be
financed by the banker/s and/or financial institution/s and the personal guarantee
of Mr. V.N.Dhoot.
iv. Rs.890.00 million (Previous year Rs.1,350.00 million) are secured by
unconditional and irrevocable guarantee given by IDBI (for principle and
interest). The said guarantee assistance, provided by IDBI, is secured by a first
charge in favour of the guarantor, of all the immovable properties, both present
& future, and a first charge by way of hypothecation of all the movables, present
& future, ranking pari passu with existing charge holders, subject to charges
created/to be created in favour of the Bankers on the specified current assets
for securing borrowings for working capital loans. These debentures are also
guaranteed by Mr. V. N. Dhoot.
v. Rs.NIL (Previous year Rs.420.00 million) were secured by third charge on the
properties of the Company. This charge was subject to and subservient to the
mortgages and charges created/to be created in favour of Financial Institutions/
Debentures Trustees/Banks.
The Debenture referred to in (i) to (iv) above are redeemable at par, in one or
more installments on various dates with the earliest redemption being on 15th
October, 2007 and last date being 1st January, 2012. These debentures are
redeemable as follows , Rs.1,107.96 million in financial year 2007-08, Rs.732.15
million in financial year 2008-09, Rs.386.56 million in financial year 2009-10,
Rs.86.38 million in financial year 2010-11 and Rs.43.19 million in financial
year 2011-12.
B. Term Loans :-
The Term Loans are secured by mortgage of existing and future assets of the Company
and a floating charge on all movables assets, present and future (except book debts),
subject to prior charge of the Bankers on stock of raw materials, finished, semi
finished goods and other movables, for securing working capital loans in the ordinary
course of business, and exclusive charge created on specific items of machinery
financed by the respective lenders. The above charges rank pari passu inter-se for all
39
intents and purposes. The above loans are guaranteed by Mr. V. N. Dhoot and
Mr. P. N. Dhoot.
In addition to the above, a part of term loan from State Bank of India is further
secured by way of pledge of shares of Kitchen Appliances India Ltd. and Applicomp
(India) Ltd. belonging to and held by the Company. A part of loans from banks are
secured by the assignment of fixed and floating charge on all moneys received/to be
received by the Company in relation to and from the Ravva Joint Venture, including
all receivables of the Company, subject to the extent necessary, to the charge in
favour of the Joint Ventures in terms of the Production Sharing Contract/Joint
Operating Agreement in respect of Ravva Joint Venture; and the assignment/fixed
and floating charge of all the right, title and interest into and under all project
documents, including but not limited to all contracts, agreements or arrangements
which the Company is a part to, and all leases, licenses, consents, approvals related
to the Ravva Joint Venture, insurance policies in the name of the Company, in a form
and manner satisfactory to Trustee.
The term loans aggregating to Rs. 13,504.96 million availed by foreign subsidiaries
are secured by way of charge on present and future assets of the respective companies,
Corporate Guarantee from the Parent Company and by way of charge/hypothecation
of receivables of fellow subsidiaries/group companies.
The Term Loan includes short term loan aggregating to Rs.726.07 million availed by
foreign subsidiaries, of which Rs.215.71 million are secured by spare letter of credit
given as surety and Rs.510.36 million are secured by charge on property held by
subsidiary and guaranteed by parent company.
C. External Commercial Borrowings :-
External Commercial Borrowings are secured by a first charge ranking parri-passu
over all the present and future movable and immovable fixed assets. The loan is
further secured by personal guarantee of Mr. V. N. Dhoot and Mr. P. N. Dhoot.
D. Corporate Loan from Banks : -
Corporate Loan from Banks are partially secured by first charge, partially by second
charge, ranking parri-passu, and the balance by second subservient charge, on the
immovable and movable assets, both present and furture, of the Company. These
are further secured by personal guarantee of Mr. V. N. Dhoot.
E. Vehicle Loans from Banks : -
Vehicle Loans from Banks are secured by way of hypothecation of Vehicles acquired
out of the said loan. The loans are also secured by personal guarantee of Mr. V. N.
Dhoot.
G. Working Capital Loans From Banks : -
Working Capital Loans from Banks are secured by hypothecation of the Company’s
stock of raw materials, packing materials, stock-in-process, finished goods, stores
and spares, book debts of Glass Shell Division only and all other current assets of the
Company and personal guarantee of Mr. V. N. Dhoot and Mr. P. N. Dhoot.
Installments of loans from banks and financial institutions falling due within one year
Rs. 5246.60 million (Previous Year Rs. 4,805.69 million)
As at As at
30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million)
SCHEDULE - 4 : UNSECURED LOANS
A. From Banks and Financial Institutions 15,623.08 5,788.79
B. Foreign Currency Convertible Bonds 7,763.79 9,003.15
C. Premium Payable on Redemption on
Foreign Currency Convertible Bonds 267.13 140.34
(Refer Note no. B-5 of Schedule 16.) - -
D. From Others 681.21 696.42
E. Sales Tax Deferral 101.84 93.06
Total 24,437.05 15,721.76
Note :-
The Company has availed interest free Sales Tax Deferral under Special Incentive to
Prestigious Unit (modified) Scheme. Out of total outstanding, Rs.93.06 million is repayable
in six equal annual installments commencing from 30th May, 2008 and the balance in two
quarterly installments commencing from 31st December, 2009.
 SCHEDULE - 5 : FIXED ASSETS
(Rupees in Million)

PARTICULARS GROSS BLOCK DEPRECIATION / AMORTISATION NET BLOCK

As at Addition Additions Deduction Currency As at Upto Addition For the Deduction/ Impairment Currency Upto As at As at
30.09.2006 on Amalga- During the During the Transla- 30.09.2007 30.09.2006 on Amalga- Year Adjustment Transla- 30.09.2007 30.09.2007 30.09.2006
mation/ Year Year tion mation/ tion
Acquisition Adjustment Acquisition Adjustment

TANGIBLE ASSETS

Freehold Land 1,675.57 - 105.27 - (21.24) 1,759.60 13.51 - - 11.72 - (1.79) - 1,759.60 1,662.06

Leasehold Land 47.82 - 15.62 - - 63.44 6.70 - 2.47 - - - 9.17 54.27 41.12

Building ** 10,744.82 - 1,302.90 7.18 (266.46) 11,774.08 3,175.88 - 329.68 1.96 - (91.35) 3,412.25 8,361.83 7,568.94

Leasehold Improvement 38.91 - 0.41 - - 39.32 37.43 - 0.95 - - - 38.38 0.94 1.48

Plant & Machinery * 103,009.11 - 12,087.01 17,096.99 (3,142.53) 94,856.60 58,290.41 - 5,673.72 15,699.96 - (2,598.13) 45,666.04 49,190.56 44,718.70

Furnace 1,992.46 - 2.81 - - 1,995.27 1,113.26 - 351.98 - - - 1,465.24 530.03 879.20

Electrical Installation 2,521.77 - 256.58 2.18 (76.65) 2,699.52 2,098.20 - 82.94 2.18 - (65.39) 2,113.57 585.95 423.57

Office Equipments 483.62 - 26.46 1.66 (21.56) 486.86 252.71 - 35.63 0.85 - (9.18) 278.31 208.55 230.91

Computer Systems 379.10 - 34.33 1.89 - 411.54 245.79 - 41.66 1.57 - - 285.88 125.66 133.31

Furniture & Fixtures 330.67 - 70.68 2.34 (4.07) 394.94 145.39 - 35.92 0.80 - 16.52 197.03 197.91 185.28

Vehicles 500.78 - 91.96 2.70 (2.01) 588.03 290.24 - 42.74 1.60 - (1.26) 330.12 257.91 210.54

Other 370.86 - 294.02 278.54 (4.59) 381.75 2.86 - 5.24 3.48 - (0.25) 4.37 377.38 368.00

LEASED ASSETS

Computer Systems 6.27 - - - - 6.27 4.96 - 1.11 - - - 6.07 0.20 1.31

INTANGIBLE ASSETS

40
Goodwill (on amalgamation) 235.98 - - - - 235.98 235.98 - - - - - 235.98 - -

Computer Software 418.86 - 188.75 2.32 (19.51) 585.78 308.52 - 64.57 0.49 - (15.61) 356.99 228.79 110.34

Other 2,392.14 - 242.04 239.85 (170.88) 2,223.45 1,237.24 - 237.97 - - (50.69) 1,424.52 798.93 1,154.90

TOTAL 125,148.74 - 14,718.84 17,635.65 (3,729.50) 118,502.43 67,459.08 - 6,906.58 15,724.61 - (2,817.13) 55,823.92 62,678.51 57,689.66

Capital Work-in-Progress 12,026.54 11,812.65 11,812.65 12,026.54

As at 30th
September, 2007 137,175.28 - 14,718.84 17,635.65 (3,729.50) 130,315.08 67,459.08 - 6,906.58 15,724.61 - (2,817.13) 55,823.92 74,491.16 69,716.20
VIDEOCON INDUSTRIES LIMITED

As at 30th September, 2006 55,809.80 54,393.39 16,853.25 1,908.81 1.11 125,148.74 22,875.01 39,703.07 5,920.59 1,118.15 44.45 34.11 67,459.08 57,689.66 -

Capital Work-in-Progress 6,490.85 3,647.14 - - - 12,026.54 12,026.54 -

Total As at
30th September, 2006 62,300.65 58,040.53 16,853.25 1,908.81 1.11 137,175.28 22,875.01 39,703.07 5,920.59 1,118.15 44.45 34.11 67,459.08 69,716.20 -

*Gross Block of Plant and Machinery includes Rs. 9,245.73 million (Previous year Rs.9,518.45 million) being the amount added on revaluation on 01.08.1998 and 01.10.2002 by erstwhile Videocon International Ltd., amalgamated with the company.
**Gross Block of Building includes Rs. 118.75 million (Previous year Rs.NIL) being the amount added on revaluation on 30.09.2007 by subsidiary Technologies Displays Mexicana S.A. de.CV.
 ANNUAL REPORT 2006-07

As at As at As at As at
30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

SCHEDULE - 6 : INVESTMENTS SCHEDULE - 8 : CURRENT LIABILITIES & PROVISIONS

LONG TERM INVESTMENTS A. Current Liabilities
IN GOVERNMENT & TRUST SECURITIES 0.41 0.41 Sundry Creditors * 15,858.23 21,610.66
QUOTED Advance from Customers 100.51 -
IN EQUITY SHARES (Fully Paid up) - TRADE 78.36 98.83 Bank Overdraft as per books 1,177.63 355.93
IN EQUITY SHARES (Fully Paid up) - OTHERS 1,773.79 514.63 Income Received in Advance 1.64 78.96
IN MUTUAL FUNDS UNITS 10.00 10.00 Interest Accrued but not due 464.70 441.96
UNQUOTED Other Liabilities 4,754.54 7,370.17
IN EQUITY SHARES (Fully Paid up)-TRADE 404.43 304.24 Unclaimed Dividend/Interest (Per Contra) 38.10 40.69
IN EQUITY SHARES (Fully Paid up)-OTHERS 176.95 124.39 * Including Acceptance of Rs.4,077.12 million
IN PREFERENCE SHARES (Fully Paid up) 0.38 - (Previous year Rs. 3,085.77 million)
IN DEBENTURES 60.00 10.00 (A) 22,395.35 29,898.37
OTHER INVESTMENTS 0.52 0.52
B. Provisions
SHARE APPLICATION MONEY PENDING Provision for Income Tax (Net of Advance Tax) 479.12 368.53
ALLOTMENT (OTHERS) 3,301.18 449.64 Proposed Dividend - Equity 803.02 773.45
APPLICATION MONEY (UNITS) 100.00 - Proposed Dividend - Preference 36.81 33.87
Provision for Corporate Tax on Proposed Dividend 142.73 113.23
CURRENT INVESTMENTS
Provision for Warranty and Maintenance Expenses 405.49 390.10
UNQUOTED Provision for Leave Encashment 118.93 105.42
IN BONDS - 1,000.98 Provision for Retirement Benefits 1,061.08 1,612.04
Provision for Restructuring cost 79.89 62.26
IN UNITS OF MUTUAL FUNDS 619.11 885.18
Provision for Contingencies / other provisions 72.45 132.64
TOTAL INVESTMENTS 6,525.13 3,398.82 Provision for Exchange Rate Fluctuation 1,023.91 -
Aggregate Book Value of quoted Investments 1,862.56 623.87 (B) 4,223.43 3,591.54
Aggregate Market Value of quoted Investments 2,303.83 941.30
TOTAL (A + B) 26,618.78 33,489.91
Aggregate Book Value of unquoted Investments/
Application Money 4,662.57 2,774.95 SCHEDULE - 9 : MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)
SCHEDULE - 7 : CURRENT ASSETS, LOANS & ADVANCES
Preliminary Expenses
A. Inventories
(As taken, valued and certified by the Management) As per Last Balance Sheet 0.05 0.07
Raw Materials including Consumables, Less : Written off during the year 0.05 0.02
Stores & Spares 12,830.07 9,877.19 TOTAL - 0.05
Work in Process 1,769.55 1,515.40
Finished Goods 4,908.78 6,401.00
Material in Transit and in Bonded warehouse 1,559.47 2,351.84
Drilling and Production Materials 206.29 226.83
Crude Oil 88.43 84.53 SCHEDULES TO PROFIT AND LOSS ACCOUNT
(A) 21,362.59 20,456.79
B. Sundry Debtors (Unsecured) Year ended on Year ended on
Outstanding for a period exceeding six months 30th Sept., 2007 30th Sept., 2006
Considered Good 806.00 1,428.79 (Rupees in Million) (Rupees in Million)
Considered Doubtful 865.27 808.69
SCHEDULE - 10 : OTHER INCOME
1,671.27 2,237.48
Less : Provision for doubtful debts 846.88 789.70 Service Charges Received 101.55 -
Interest Income (TDS Rs.3.88 million
824.39 1,447.78 Previous year Rs.8.59 million) 551.24 599.32
Others - Considered Good 25,270.98 32,300.30 Income From Investments & Securities Division 205.76 454.74
(B) 26,095.37 33,748.08 (TDS Rs.43.24 million, Previous year Rs.56.04 million)
(Refer Note No.B-8 and 9 of Schedule No. 16)
C. Cash & Bank Balances
Insurance Claim Received 64.93 49.97
Cash on hand 16.14 16.05
Cheque/Drafts on hand /in Transit 466.55 161.58 Exchange Rate Fluctuation 1,054.83 53.17
Balances With Bank Profit on Sale of Fixed Assets 1,294.54 2,248.65
In Current Accounts 4,552.75 3,530.18 Write back against dimunition in
In Fixed Deposits 14,135.02 16,222.15 Value of Quoted Investments - 234.55
In Margin Money 3.60 - Miscellaneous Income 1,615.00 1,189.24
In Dividend/Interest Warrant Account (Per Contra) 38.10 40.69 (TDS Rs. 0.02 million Previous year Rs.NIL)
(C) 19,212.16 19,970.65 TOTAL 4,887.85 4,829.64
D. Other Current Assets SCHEDULE - 11 : COST OF GOODS CONSUMED/SOLD
Interest Accrued 59.67 58.48 A. Material and Components Consumed
Insurance Claim Receivable 36.08 31.54 Opening Stock 9,558.40 7,344.36
Duty Drawback Receivable - 1.91 Add : Addition on Amalgamation - 262.73
Other Receivable 131.31 463.82
Add : Purchases 79,313.10 85,253.10
(D) 227.06 555.75
88,871.50 92,860.19
E. Loans & Advances (Unsecured, considered good) Less : Closing Stock 12,830.07 9,558.40
Advances recoverable in Cash or in (A) 76,041.43 83,301.79
kind or for value to be received 21,434.06 13,958.24
Balance with Central Excise / Customs Department 150.50 531.75
Advance Fringe Benefit Tax ( Net of Provision) 0.03 -
Other Deposits 299.07 181.82
(E) 21,883.66 14,671.81
TOTAL( A to E ) 88,780.84 89,403.08

41
 VIDEOCON INDUSTRIES LIMITED

Year ended on Year ended on Year ended on Year ended on

30th Sept., 2007 30th Sept., 2006 30th Sept., 2007 30th Sept., 2006
(Rupees in Million) (Rupees in Million) (Rupees in Million) (Rupees in Million)

B. (Increase)/Decrease in Stock SCHEDULE - 14 :MANUFACTURING &

Closing Stock : OTHER EXPENSES
Finished Goods 4,997.21 6,302.96 Rent,Rates & Taxes 891.04 810.44
Work in Process 1,769.55 1,487.45 Power, Fuel & Water 2,918.86 3,395.34
6,766.76 7,790.41 Repairs to Building 38.41 35.94
Opening Stock : Repairs to Plant & Machinery 95.68 66.06
Finished Goods 6,302.96 4,221.91 Repairs & Maintenance-others 397.81 546.84
Add : Addition on Amalgamation - 208.72 Bank Charges 379.33 320.83
6,302.96 4,430.63 Directors’ Sitting Fees 1.22 0.78
Work in Process 1,487.45 1,709.78 Royalty 108.96 212.17
Add : Addition on Amalgamation - 5.59 Printing & Stationery 22.47 36.04
1,487.45 1,715.37 Freight & Forwarding 1,988.66 2,192.41
7,790.41 6,146.00 Advertisement & Publicity 974.20 1,068.13
(B) 1,023.65 (1,644.41) Sales Promotion expenses 330.37 544.37
Discount & Incentive Schemes 2,346.57 2,802.97
TOTAL (A+B) 77,065.08 81,657.38
Legal & Professional Charges 479.18 422.84
SCHEDULE - 12 :PRODUCTION & EXPLORATION Donation 71.86 71.59
EXPENSES - OIL & GAS Insurance Expenses 485.07 565.59
Production Expenses 358.41 241.93 Auditiors’ Remuneration 49.81 60.42
Royalty 384.83 393.96
Cess 566.53 543.25 Bad Debts Written off 56.23 41.73
Production Bonus 107.80 191.87 Warranty and Maintenance Expenses 585.23 540.67
Government Share in Profit - Petroleum 6,763.18 7,861.84 Miscellaneous Expenditure written off 0.05 0.02
Abandonment Costs 47.64 61.24 Technical Know-How Fees - 8.71
Producing Properties Written Off 833.95 177.36 Restructuring Cost 483.13 -
Exploration Expenses 507.41 111.76
Product Development 0.59 -
TOTAL 9,569.75 9,583.21 Diminution in Value of Investments - -
SCHEDULE - 13 :SALARY, WAGES & Miscellaneous Expenses 1,637.14 2,171.07
EMPLOYEES’ BENEFITS TOTAL 14,341.87 15,914.96
Salary, Wages & Other Benefits 4,741.26 6,429.35
Contribution to Provident and other Funds 1,074.14 667.31 SCHEDULE - 15 : INTEREST & FINANCE CHARGES
Staff Welfare 267.73 248.24 On Fixed Period Borrowings 3,723.30 2,662.36
On Others 842.07 752.10
TOTAL 6,083.13 7,344.90
TOTAL 4,565.37 3,414.46

SCHEDULE - 16 : SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
A) SIGNIFICANT ACCOUNTING POLICIES:
1. Basis of Consolidation
a) The Consolidated financial statements (CFS) relate to Videocon Industries Limited (“the Company” or “the Parent Company”) and its subsidiary companies “collectively referred to as “the
Group”.
b) The financial statements of the subsidiary companies used in the preparation of the Consolidated Financial Statement are drawn upto the same reporting date as that of the Company i.e.
30th September, 2007.
c) The CFS have been prepared in accordance with the Accounting Standard 21 “Consolidated Financial Statements”, Accounting Standard 27 “Financial Reporting of Interests in Joint
Venture” and Accounting Standard 23 “Accounting for investments in Associates in Consolidated Financial Statements” issued by the Institute of Chartered Accountants of India.
d) Principles of Consolidation:
The CFS have been prepared on the following basis:
i) The financial statements of the Company, its subsidiary companies and jointly controlled entities have been consolidated on a line-by-line basis by adding together the book values
of like items of assets, liabilities, income and expenses, after fully eliminating intra-group balances /transactions and unrealised profits or losses.
ii) All separate financial statements of subsidiaries, originally presented in currencies different from the Group’s presentation currency, have been converted into Indian Rupees (INR)
which is the functional currency of the parent company. In case of foreign subsidiaries, revenue items have been consolidated at the average of the rates prevailing during the year.
All assets and liabilities are translated at rates prevailing at the balance sheet date. The exchange difference arising on the translation is debited or credited to Foreign Currency
Translation Reserve.
iii) The CFS have been prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented in the same manner as the
Company’s separate financial statements except in respect of depreciation and retirement benefits,where it was not practicable to use uniform accounting policies in case of certain
foreign subsidiaries. However, the amount of impact of these differences is not material.
iv) The excess of the cost to the company of its investment in subsidiary over the Company’s share of equity of the subsidiary as at the date on which investment in subsidiary is made,
is recognised in the financial statement as Goodwill. The excess of Company’s share of equity and reserve of the subsidiary Company over the cost of acquisition is treated as Capital
Reserve.
v) The difference between the proceeds from disposal of investment in a Subsidiary and the carrying amount of its assets less liabilities as of the date of disposal is recognised in the
Consolidated Statement of Profit and Loss Account as the profit or loss on disposal of Investment in Subsidiary.
vi) Minority interest in the net assets of Consolidated Subsidiary consists of (a) The amount of equity attributable to minorities at the date on which investment in a subsidiary is made
and (b) The minorities share of movements in equity since the date the Parent subsidiary relationship came into existence.
vii) Investments in entities in which the company or any of its subsidiaries has significant influence but not a controlling interest, are reported according to the equity method. The
carrying amount of the investment is adjusted for the post acquisition change in the investor’s share of net assets of the investee. The consolidated profit and loss account includes
the company’s share of the results of the operations of the investee.

42
 ANNUAL REPORT 2006-07

e) 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
September, 2007 are as under:

Name of the subsidiary Country of incorporation Percentage of Holding As at

30th Sept., 2007 30th Sept.,2006

Paramount Global Ltd. Hong Kong 100% 100%

Middle East Appliances LLc Sultanate of Oman 100% 100%
Global Energy Inc Cayman Islands 100% NIL
(w.e.f 10th October 2006))
Videocon Display Research Co. Ltd. Japan 100% NIL
(w.e.f. 9th March 2007)
Sky Billion Trading Ltd. Hong Kong 100% NIL
(w.e.f 21st November 2006)
Mars Overseas Ltd. Cayman Islands NIL 100%
(up to 26th September 2007)
Videocon Global Ltd. British Virgin Islands 100% 100%
Venus Corporation Ltd. Cayman Islands 100% 100%
Powerking Corporation Ltd. Cayman Islands 100% 100%
Videocon (Mauritius) Infrastructure Ventures Ltd. Mauritius 100% 100%
Gajanan Electronics and Home Appliances Pvt. Ltd. India NIL 100%
(Up to 26th September 2007)
Mayur Household Electronics Appliances Pvt. Ltd. India 100% 100%
Godavari Consumer Electronics Appliances Pvt. Ltd. India 100% 100%
Eagle Corporation Ltd. Cayman Islands 100% 100%
Technologies Displays Americas LLC * State of Delaware 100% 100%
(Formerly Thomson Displays Americas LLC)
Technologies Displays Mexicana S.A. de.CV *
(Formerly Thomson Display Mexicana S.A. de.CV ) Mexico 100% 100%
VDC Technologies S.P.A. * Italy 100% 100%
TTD International S.A. * France 100% 100%
(Formerly Thomson Tubes & Displays S.A. )
TDP S.P.z.o.o.* Poland 100% 100%
(Formerly Thomson Displays Polska S.P.z.o.o. )
TTD International Ltd.* Hongkong 100% NIL
(w.e.f. 30th January 2007)
TGDC Guandong Displays Co. Ltd.*
( Formerly Thomson Guandong Displays Co. Ltd. ) China 91.3% 91.3%
Thomson Display Technology Research & Development Co. Ltd.* China 100% 100%
VDC Technologies Deutschland GmbH ** Germany 100% NIL
(w.e.f. 14th September 2007)

* Subsidiaries of Eagle Corporation Ltd.

** Subsidiary of VDC Technologies S.P.A.

Name of the Associate Country of incorporation Percentage of Holding As at

30th Sept., 2007

Evans Fraser & Co. (India) Ltd. India 41.67%

2. Basis of Accounting:
a) The financial statements are prepared under historical cost convention, except for
certain Fixed Assets which are revalued, using the accrual system of accounting in
accordance with the accounting principles generally accepted in India (Indian GAAP)
and the requirements of the Companies Act, 1956, including the mandatory
Accounting Standards issued by the Institute of Chartered Accountants of India, as
referred to in Section 211 (3C) of the Companies Act, 1956.
b) Use of Estimates
The preparation of financial statements requires the management of the Company to
make estimates and assumptions that affect the reported balances of assets and
liabilities and disclosures relating to the contingent liabilities as at the date of the
financial statements and reported amounts of income and expenses during the year.
Example of such estimates include provisions for doubtful debts, employee retirement
benefits plans, provision for income tax, accounting for contract costs expected to
be incurred to complete software development and the useful lives of fixed assets.
3. Fixed Assets:
a) Fixed Assets are stated at actual cost, except for certain fixed assets which have
been stated at revalued amounts, less accumulated depreciation / amortisation and
impairment loss, if any. The actual cost is inclusive of freight, installation cost, duties,
taxes, financing cost and other incidental expenses but net of Modvat/Cenvat/Value
added tax. Exchange difference, if any, in respect of liabilities incurred to acquire
fixed assets is adjusted to the carrying amount of respective fixed assets.
b) Capital Work in Progress is carried at cost, comprising of direct cost, attributable
interest and related incidental expenditure. The advances given for acquiring fixed
assets are shown under Capital Work in Progress.
4. Joint Ventures for Oil and Gas Fields:
In respect of joint ventures in the nature of Production Sharing Contracts (PSC) entered
into by the Company for oil and gas exploration and production activities, the Company’s
share in the assets and liabilities as well as income and expenditure of Joint Venture
Operations are accounted for according to the Participating Interest of the Company as per
the PSC and the Joint Operating Agreements on a line-by-line basis in the Company’s
Financial Statements.
5. Exploration, Development and Production Costs:
The Company follows the “Successful Efforts Method” of accounting for oil and gas
exploration, development and production activities as explained below:
a) Exploration and production cost are expensed in the year/period in which these are
incurred.
b) Development costs are capitalised and reflected as “Producing Properties”. Costs
include recharges to the Joint Venture by the Operator/Affiliate in respect of the
actual cost incurred and as set out in the Production Sharing Contract (PSC).
Producing Properties are depleted using the “Unit of Production Method”.

43
 VIDEOCON INDUSTRIES LIMITED
6. Abandonment Costs:
Abandonment Costs relating to dismantling, abandoning and restoring offshore well sites
and allied facilities are provided for on the basis of “Unit of Production Method”. Aggregate
abandonment costs to be incurred are estimated based on technical evaluation by experts.
7. Depreciation and Amortisation: 16.
i) The Parent Company and Indian Subsidiary Companies provide depreciation on fixed
assets held in India on written down value method in the manner and at the rates
specified in the Schedule XIV to the Companies Act, 1956 except a) on Fixed Assets
of Consumer Electronics Division except Glass Shell Division and; b) on office
buildings acquired after 01.04.2000, on which depreciation is provided on straight
line method at the rates specified in the said Schedule. Depreciation on fixed assets
held outside India is calculated on straight line method at the rates prescribed in the
aforesaid Schedule or based on useful life of assets whichever is higher. Producing
Properties are depleted using the “Unit of Production Method”. Leasehold Land is
amortised over the period of lease. 17.
The depreciation on revised carrying amount of fixed assets arising on account of
translation of Foreign Currency Loans availed in respect of the Fixed Assets and on
revaluation of assets is provided as aforesaid over the residual useful life of the
respective assets.
Intangibles: Intangible assets are amortised over a period of five years.
ii) In case of foreign subsidiaries, depreciation is charged to the income statement on
a straight line basis over the estimated remaining useful life of the Assets. Leasehold
land is amortised on straight line method over the period of lease.
8. Impairment of Assets:
The Fixed Assets or a group of assets (Cash generating unit) and Producing Properties are
reviewed for impairment at each Balance Sheet date. In case of any such indication, the
recoverable amount of these assets or group of assets is determined, and if such recoverable
amount of the asset or cash generating unit to which the asset belongs is less than it’s
carrying amount, the impairment loss is recognised by writing down such assets to their
recoverable amount. An impairment loss is reversed if there is change in the recoverable
amount and such loss either no longer exists or has decreased.
9. Investments:
18.
a) Current Investments : Current Investments are carried at lower of cost and quoted/
fair value.
b) Long Term Investments : Quoted Investments are valued at cost or market value
whichever is lower. Unquoted Investments are stated at cost. The decline in the
value of the unquoted investment, other than temporary, is provided for.
Cost is inclusive of brokerage, fees and duties but excludes Securities Transaction
Tax.
10. Inventories:
Inventories including crude oil stocks are valued at cost or net realisable value whichever is
lower. Cost of inventories comprises all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and condition. Cost is determined 19.
on Weighted Average Basis.
11. Borrowing Costs:
20.
Borrowing costs that are directly attributable to the acquisition, construction or production
of an qualifying asset are capitalised as part of the cost of that asset. Other borrowing costs
are recognised as an expense in the period in which they are incurred.
12. Excise and Customs Duty: 21.
Excise Duty in respect of finished goods lying in factory premises and Customs Duty on
goods lying in customs bonded warehouse are provided for and included in the valuation of
inventory.
13. MODVAT/ CENVAT/ Value Added Tax:
22.
MODVAT/ CENVAT / Value Added Tax Benefit is accounted for by reducing the purchase
cost of the materials/fixed assets.
14. Revenue Recognition:
a) Revenue is recognised on transfer of significant risk and reward in repect of
ownership.
b) Sale of Crude Oil and Natural Gas are exclusive of Sales Tax. Other sales/turnover
includes sales value of goods, services, excise duty, duty drawback and other
recoveries such as insurance, transportation and packing charges but excludes sale
tax and recovery of financial and discounting charges.
c) Insurance, duty drawback and other claims are accounted for as and when admitted
by the appropriate authorities.
15. Foreign Currency Transactions:
23.
a) Transactions in foreign currencies are recorded at the exchange rate prevailing on
the date of transactions. Current Assets and Current Liabilities are translated at the
year end rate. The difference between the rate prevailing on the date of transaction
and on the date of settlement as also on translation of Current Assets and Current
Liabilities at the end of the year is recognised, as the case may be, as income or
expense for the year.
44
b) Foreign Currency liabilities in respect of loans availed for fixed assets and outstanding
on the last day of the financial year are translated at the exchange rate prevailing on
that day and any loss or gain arising out of such translation is adjusted to the cost of
the fixed assets and depreciation is also charged/adjusted on such differences.
Translation of the financial statements of foreign branch which are integral foreign
operations:
a) Revenue items are translated at average rates.
b) Opening and closing inventories are translated at the rate prevalent at the
commencement and close, respectively, of the accounting year.
c) Fixed assets are translated at the exchange rate as on the date of the transaction.
Depreciation on fixed assets is translated at the rates used for translation of the
value of the assets to which it relates.
d) Other current assets and current liabilities are translated at the closing rate.
Retirement Benefits:
a) Contributions to Provident Fund and Family Pension Scheme are accounted for on
accrual basis and charged to Profit & Loss Account.
b) The Company’s employees, except for employees of units at Shahjahanpur, Dist.
Alwar, Rajasthan and at Butibori Dist. Nagpur, Maharashtra, are covered under the
Employees Group Gratuity Cum Life Assurance Scheme of Life Insurance Corporation
of India. The Company accounts for gratuity liability equivalent to the premium amount
payable to Life Insurance Corporation of India every year, which is based on actuarial
valuation. The liability with respect to the gratuity for the employees of units at
Shahjahanpur, Dist: Alwar, Rajasthan and at Butibori Dist: Nagpur, Maharashtra are
accounted/ provided for on the basis of acturial valuation at year end.
c) Liability on account of leave encashment in respect of employees of Glass Shell unit
at village Chhavaj, Dist.Bharuch, Gujrat, unit at Shahjahanpur Dist. Alwar, Rajasthan,
and unit at Butibori Dist. Nagpur, Maharashtra, is provided for on actuarial valuation
basis and in respect of other employees to the extent encashable as at the end of the
financial year as per rules of the Company.
d) In case of foreign subsidiaries retirement benefits are recognised as per the respective
local laws.
Taxation:
Income tax comprises of Current Tax, Deferred Tax and Fringe Benefit Tax.
Current Tax :
Provision for Current Tax and Fringe Benefit Tax is calculated on the basis of the provisions
of local laws of respective entity.
Deferred Tax :
Deferred tax assets and liabilities are recognised for the future tax consequences of timing
differences, subject to the consideration of prudence. Deferred tax assets and liabilities are
measured using the tax rates enacted or substantively enacted by the balance sheet date.
The carrying amount of deferred tax asset/liability are reviewed at each Balance Sheet date.
Share Issue Expenses:
Share issue expenses are written off to Securities Premium Account.
Premium on Redemption of Bonds / Debentures:
Premium on Redemption of Bonds / Debentures are written off to Securities Premium
Account.
Research and Development:
Revenue expenditure pertaining to Research and Development is charged to revenue under
the respective heads of account in the period in which it is incurred. Capital expenditure, if
any, on Research and Development is shown as an addition to Fixed Assets under the
respective heads.
Accounting for Leases:
Where the company is lessee
a) Operating Leases: Rentals in respect of all operating leases are charged to Profit &
Loss Account.
b) Finance Leases:
(i) Rentals in respect of all finance leases entered before 1st April, 2001 are
charged to Profit & Loss Account.
(ii) In accordance with Accounting Standard - 19 on “Accounting for Leases”
issued by the Institute of Chartered Accountants of India, assets acquired
under finance lease on or after 1st April, 2001, are capitalised at the lower of
their fair value and present value of the minimum lease payments and are
disclosed as “Leased Assets”.
Warranty:
Provision for the estimated liability in respect of warranty on sale of consumer elecrtonics
and Home Appliances product is made in the year in which the revenues are recognised,
based on technical evaluation and past experience.
 ANNUAL REPORT 2006-07

24. Prior Period Items: While accepting the Interim Award, the Company computed and submitted the
Prior period items are included in the respective heads of accounts and material items are calculation on 31st May 2005 to Government of India (GOI) indicating the amount
disclosed by way of notes to accounts. payable by the Company after applying the said Arbitration Award at US$ 27.02
million equivalent to Rs. 1,081.88 million, which was not accepted by GOI and it
25. Provision, Contingent Liabilities and Contingent Assets: claimed that the Company needs to pay US$ 43.72 million equivalent to Rs. 1,750.55
Provisions comprise liabilities of uncertain timing or amount. Provisions are recognised million and interest thereon applying the same Arbitration Award. The Company
when there is a present obligation as a result of past events and it is probable that there will filed a supplementary application on 7th July 2005 followed by an amendment
be an outflow of resources. application on 8th August 2005 with the Arbitration Tribunal with a prayer to determine
the correct amount payable to GOI as well as to determine the interest, if any, payable
Contingent Liabilities are disclosed by way of Notes to Accounts. Disputed demands in
on the same to GOI. Pending the final decision of the Hon’ble Arbitral Tribunal, the
respect of Central Excise, Customs, Income tax and Sales Tax are disclosed as contingent
Company has accounted for and paid the sum of US$ 43.72 million equivalent to Rs.
liabilities. Payment in respect of such demands, if any, is shown as an advance, till the final
1,750.55 million to GOI on ad hoc basis.
outcome of the matter.
The GOI has further filed an affidavit on 10th May 2005 before the Kuala Lumpur
Contingent assets are not recognised in the financial statements.
High Court in Malaysia challenging the Arbitration Award and praying for setting
26. Other Accounting Policies: aside the Partial Award dated 31st March 2005 only in respect of ONGC Carry Issue
These are consistent with the generally accepted accounting practices. whereas the Company has challenged the jurisdiction of the Kuala Lumpur High
Court and therefore the maintainability of such an appeal at that Court.
b) There is a dispute between the Company and GOI with regard to the computation of
B] NOTES TO ACCOUNTS: As at As at
interest on delayed payment of profit petroleum to the extent of US$ 67,636 equivalent
30th Sept., 2007 30th Sept., 2006 to Rs. 2.71 million. The Company has filed an Interim Application on 7th July 2005
(Rs. In Million) (Rs. In Million) before the Hon’ble Arbitral Tribunal for final determination of such amount, pending
which no provision has been made by the Company.
1. Contingent Liabilities not provided for:
c) There is a dispute regarding the rate of conversion from US$ into Indian rupees
a) Letters of Guarantees 13,064.44 13,924.04
applicable to the Nominees of the GOI for the purpose of payment of amount of the
Includes Bank Guarantees given to Sales invoices for sale of the Crude Oil by the Company under the Ravva PSC. The dispute
Tax Department Rs.8.21 million was referred to an International Arbitration in accordance with the provisions of the
(Previous year Rs. 869.12 million) Ravva PSC. Vide the interim award dated 31st March 2005, the Tribunal has partly
against demand stated in ‘g’ below upheld the Company’s claim. While accepting the Award, the Company has worked
b) Letters of Credit opened 5,552.55 4,216.09 out and submitted a computation on 30th June 2005 to GOI indicating the amount
c) Customs Penalty - Stayed by High Court 11.85 11.85 receivable at Rs.121.43 million being the amount short paid by GOI nominees up to
19th June, 2005 and interest thereon also calculated up to 19th June 2005.The
d) Customs Duty demands under dispute 95.96 94.42 Company further vide its letter dated 22nd August 2005 updated its claim indicating
[Amount paid under protest the total amount receivable from GOI Nominees at Rs.124.42 million being the amount
Rs. 0.40 million (Previous year short paid by GOI nominees up to 31st July 2005 and interest thereon also calculated
up to 31st July 2005. However, GOI and the nominee of the GOI have rejected the
Rs. 3.94 million)] computation and claim made by the Company.
e) Income Tax demands under dispute 102.16 100.25 The Company has filed a supplementary application on 7th July 2005 and an
[Amount paid under protest amendment application on 8th August 2005 with the Arbitration Tribunal with a prayer
Rs. 102.16 million (Previous year to determine the correct amount payable by GOI/its Nominees as well as to determine
the interest, if any, payable on the same. The GOI has filed an Original Miscellaneous
Rs. 100.25 million)] Petition (OMP) 329 of 2006 dated 20th July 2006 before Hon’ble Delhi High Court
f) Excise Duty and Service Tax challenging the award in respect of this Dispute. Another OMP 223 of 2006 dated
demand under dispute 221.81 387.17 9th May 2006 has been filed by GOI’s nominees HPCL and BRPL in the Hon’ble Delhi
High Court challenging the Partial Award dated 31st March 2005 in respect of
[Amount paid under protest Conversion/Exchange Rate Matter. Both OMP 223 of 2006 are presently sub-judice
Rs. 49.21 million (Previous year before the Hon’ble Delhi High Court. The GOI nominees continue to make payments
Rs. 2.43 million)] at the exchange rate without considering directive from the Hon’ble Arbitral Tribunal
in this regard.
g) Sales Tax demands under dispute 213.41 243.74
d) GOI has filed OMP 255 of 2006 dated 30th May 2006 before the Hon’ble Delhi High
[Amount paid under protest
Court under section 9 of the Arbitration and Conciliation Act for change of situs of
Rs. 42.42 million (Previous year arbitration from London (U.K.) to Kuala-Lumpur (Malaysia). GOI has challenged
Rs. 34.20 million)] London as the permanent seat of arbitration for resolution of disputes under the
Ravva PSC and has claimed for declaration of Kuala-Lumpur as the permanent seat
h) Others 51.42 47.91
of arbitration whereas the Company honours the award dated 15th November 2003
i) Disputed Income Tax demand amounting to Rs. 22.29 million in respect of of the Hon’ble Arbitral Tribunal, passed with mutual consent of both the GOI and the
certain payment made by Ravva Oil & Gas Field Joint Venture is currently Company, permanently fixing the seat of Arbitration at London in respect of disputes
pending before the Income Tax Appellate Tribunal. The ultimate outcome of stated in (a),(b), and (c) above. The Hon’ble Arbitral Tribunal vide its letter dated
the matter cannot presently be determined and no provision for any liability 28th March 2007 has indicated that it shall contiune with the arbitration proceedings,
that may result has been made in the accounts as the same is subject to in respect of the disputes referred above, after receiving the judgement of the Hon’ble
agreement by the members of the Joint Venture. Should it ultimately become Delhi Court in OMP 255 of 2006.
payable, the Company’s share as per the participating interest would be upto
e) In respect of the Disputes stated in (i) and (ii) of (a) above, the GOI has vide its letter
Rs. 5.57 million.
dated 3rd November 2006 now raised a collective demand of Rs. 334.13 Million on
2. a) There was a dispute regarding (i) deductibility of Oil and Natural Gas Corporation account of additional profit petroleum payable and interest on delayed payments of
Ltd. (ONGC) Carry while computing the Post Tax Rate of Return (PTRR) under the profit petroleum calculated up to 30th September 2006 pursuant to the Partial Arbitral
Ravva Production Sharing Contract (PSC); (ii) deductibility of provision of Site Award dated 31st March 2005 in the Dispute stated above at (a) and Interim Award
Restoration Costs for computation of Cost Petroleum and PTRR; (iii) deductibility of dated 12th February 2004 and Partial Award dated 23rd December 2004 in the Dispute
inventory purchased for computation of Cost Petroleum and PTRR; (iv) deductibility stated above at (b). The Company has disputed such demand and is instead seeking
of Notional Dividend Distribution Tax under the Income-tax Act, 1961 for computation refund of US$ 16.70 Million equivalent to Rs. 668.67 million excess paid by the
of PTRR; and (v) deductibility of Deposits, Advances and Pre-payments made for Company to the GOI with interest thereon.
the purpose of Petroleum Operations in the business of Ravva Oil & Gas Field for
Any further sum required to be paid or returnable in respect of dispute above at (a)
computation of Cost Petroleum and PTRR. The Dispute was referred to an
to (e) in accordance with the determination of the amount by Hon’ble Arbitral Tribunal/
International Arbitration in accordance with the provisions of the Ravva PSC. Vide
High Courts in this behalf shall be accounted for on the final outcome in this regard.
the interim award dated 31st March 2005, the Tribunal has upheld the Company’s
claims stated in (i) and (v) above whereas the claim of the Company stated in (ii), 3. In case of parent company, the gross block of fixed assets includes Rs.9,244.75 million
(iii) and (iv) above were rejected by the Tribunal. (Previous year Rs. 9,245.73 million ) on account of revaluation of fixed assets carried out
in the past on 1st April 1998 and 1st October 2002. The additional depreciation consequent

45
 VIDEOCON INDUSTRIES LIMITED
upon revaluation of fixed assets is being charged to Profit and Loss account. Hitherto, an
amount equivalent to the said additional depreciation was being withdrawn from General
Reserve and credited to Profit and Loss Account. From this year, the Company has changed
this accounting policy and the amount equivalent to the such additional depreciation is
being withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.
Consequent to this change in policy the cumulative amount transferred from General Reserve
on account of additional depreciation relating to revaluation of fixed assets upto 30th
September 2006 amounting to Rs.7,538.89 million has been transferred from Revaluation
Reserve Account to General Reserve Account.
This change in Accounting Policy has no impact on the Profit for the Year.
4. During the year certain revalued assets have been disposed off. As required by Accounting
Standard - 10 “Accounting for Fixed Asset”, loss on disposal of such assets to the extent of
Rs.0.98 million (Previous year Rs.13.64 million) is directly charged to Revaluation Reserve
relating to the increase which was previously recorded as a credit to Revaluation Reserve.
5. A) The Company had, during the year 2006, issued
a) 90,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on 7th
March, 2011 [outstanding Bonds 89,000 (Previous year 90,000)].
i The bonds are convertible at the option of the bondholders at any time on and
after 20th March 2006 upto the close of business on 28th February, 2011 at a
fixed exchange rate of Rs.44.145 per 1 US$ and at initial conversion price of
Rs.545.24 per share being at premium of 15% over the reference share price.
The conversion price shall be adjusted downwards in the event that the average
closing price of shares for 15 consecutive trading days immediately prior to
the reset date is less than conversion price, subject to a floor price of
Rs. 410/- as adjusted in accordance with the anti-dilution provisions.
ii The Bonds are redeemable in whole but not in part at the option of the company
on or after 7th February, 2009 but prior to 28th February, 2011 if aggregate
value on each of 30 consecutive trading days ending not earlier than 14 days
prior to the date upon which notice of such redemption is given was at least
130% of the accreted principal amount.
iii The Bonds are redeemable at maturity date on 7th March, 2011 at 116.738%
of its principal amount, if not redeemed or converted earlier.
b) 105,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on
25th July 2011.[outstanding Bonds 104,901 (Previous year 105,000).]
i The bonds are convertible at the option of the bondholders at any time on or
after 2nd September 2006 until 18th July 2011 except for certain closed
periods, at a fixed exchange rate of Rs.46.318 per 1 US$ and at initial
conversion price of Rs.511.18 per share being at premium of 22% over
reference share price. The conversion price shall be adjusted downwards in
the event that the average closing price of shares for 15 consecutive trading
days immediately prior to the reset date is less than conversion price, subject
to a floor price of Rs. 410/- as adjusted in accordance with the anti-dilution
provisions.
ii Redeemable in whole but not in part at the option of the Company on or after
24th August 2009, if aggregate value on each of 30 consecutive trading days
ending not earlier than 14 days prior to the date upon which notice of such
redemption is given was at least 130% of the accreted principal amount.
iii Redeemable at maturity date on 25th July, 2011 at 127.65% of its principle
amount, if not redeemed or converted earlier.
B) During the year, the holders of 1099 Bonds have exercised their option and have
converted the Bonds into Equity Shares at the fixed rate of exchange. In view of the
above and considering the uncertainity of the number of bond holders exercising the
option of conversion at the fixed exchange rate and uncertainty of foreign exchange
rate prevailing on the dates of redemption, a provision of Rs 1,023.91 million being
the amount of foreign exchange fluctuation gain on FCCB during the year, has been
made in the accounts in accordance with the requirement of Accounting Standard
29-Provisions, Contingent Liabilities and Contingent Assets.
C) Subsequent to the year end, 85,250 Bonds have been converted into 8,339,350 equity
shares of Rs.10/- each on exercise of the option by the bond holders.
As at As at
30th Sept., 2007 30th Sept., 2006
(Rs. In Million) (Rs. In Million)
6. The major components of deferred tax liabilities/
assets are as under:
a) Deferred Tax Liabilities
Related to Depreciation on Fixed Assets &
amortisation 5,292.78 2,798.24
5,292.78 2,798.24
46
b) Deferred Tax Assets
i) Related to Unabsorbed Depreciation
and Business Loss 651.73 1,139.23
ii) Expenses charged in the financial statements
but allowable as deduction in future years
under the Income Tax Act, 1961 19.63 21.30
iii) Diminution in value of investments charged
in Profit & Loss Account 54.84 40.74
iv) Tax Credit available U/S 115 JAA 1,011.88 -
v) Other 975.57 65.51
2,713.65 1,266.78
Net Deferred Tax Liability 2,579.13 1,531.46
7. Joint Venture Disclosure:
Unincorporated Joint Venture
a) Ravva Oil & Gas Field:
The Production Sharing Contract (PSC) in respect of Ravva Oil and Gas Field was
entered into on 28th October 1994 (Effective Date) between the President of India on
behalf of the Government of India and contractor parties viz. Oil and Natural Gas
Corporation Ltd, erstwhile Petrocon India Limited (now amalgamated with the
Company), Cairn Energy India Pty Limited and Ravva Oil (Singapore) Pte. Ltd. The
contractor parties have persuant to the PSC, entered into a Joint Operating Agreement
on the Effective Date. Cairn Energy India Pty Ltd. is the Operator. The participating
interest of the Company in the said PSC is 25%.
b) The Consortium comprising the Company, Oilex NL Australia, GAIL India Ltd.,
Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. has
been awarded the Block #56, on the Eastern Plank of the Central Salt Producing Oil
Field in Oman. The Exploration Production Sharing Agreement and Joint Operating
Agreement has been executed on 28th June, 2006. The exploration drilling would be
commenced after the aquisition of additional seismic data. The Participating interest
of the Company in the said venture is 25%. The Capital Commitments of the Company
based on estimated minimum work programme for first exploration period of three
years in relation to its participating interest is Rs. 251.04 (Previous year Rs.344.43)
million.
c) Great Artesian Oil and Gas Ltd (GOG) holds 100% of EPP 27 offshore Otway Basin,
South Australia which is in year 6 of the permit term. The Company, Oilex NL, Gujarat
State Petroleum Corporation Ltd. and GOG have entered into Farm-in agreement and
Joint Operating Agreement in February, 2006.The acquisition of 2D Seismic Data
and drilling of one exploration well is in progress. The participating interest of the
Company is 20%. The minimum work programme proposed in the bid application
for seismic survey, data processing and drilling of one exploration well involves
capital commitment in relation to its participating interest of Rs. 171.64 (Previous
year Rs.194.53) million.
d) The Consortium comprising the Company, Oilex NL, Australia, Gujarat State Petroleum
Corporation Ltd, Hindustan Petroleum Corporation Ltd. and Bharat Petroleum
Corporation Ltd. has been awarded a Block WA-388-P for a term of 6 years from
Government of Western Australia. Joint operating Agreement has been signed by all
of Joint venture parties in March 2007. The acquisition of Seismic Data is in progress.
The participating interest of the Company is 20%. The Capital Committments of the
Company based on six year work program in relation to its participating interest is
Rs.163.30 million (Previous year Rs. NIL).
e) The consortium comprising the Company and Bharat PetroResources Limited (BPRL),
a wholly owned subsidiary of Bharat Petroleum Limited, have entered into an
agreement with EnCana Corporation and 749739 Alberta Limited (“Vendors”) for
purchase from Vendors, 100% equity of EnCana Brasil Petróleo Limitada, (EBPL)
for a consideration of approximately US$ 165 million. The effective date of the
agreement has been agreed to be January 01, 2007. Closing of the transaction is
subject to normal closing conditions and regulatory approvals. EBPL has interests
in four concessions with ten deep water offshore exploration blocks in Brazil. The
Company and BPRL are equal partners in the consortium. At present the regulatory
authorities in Brasil are reviewing the application of EBPL for granting its approval
for change of control of EBPL.
f) The consortium, comprising the subsidiary (Special Purpose Vehicle) of the Company,
Global Energy Inc. Oilex (JPDA 06-103) Limited, GSPC (JPDA) Limited and Bharat
Petro Resources JPDA Limited, has been awarded block JPDA 06-103 situated within
the Bonaparte Basin, East Timor. The PSC has been signed on 15th November, 2006
and Joint Operating Agreement has been signed on 5th January, 2007. The
participating interest of Global Energy Inc. is 25%. Contract for 3D Seicmic Data has
been awarded. The capital commitments based on committed minimum work
programme for five years period in relation to participating interest of Global Energy
Inc is Rs.716.72 million. (Previous Year Rs.NIL).
The Financial Statements reflect the share of the Company in the assets and the
liabilities as well as the income and the expenditure of Joint Venture Operations on a
line by line basis. The Company incorporates its share in the operations of the Joint
Venture based on statements of account received from the Operator. The Company
 ANNUAL REPORT 2006-07

has, in terms of Accounting Policy No. A-7 above, recognised abondonment costs b) Transactions/outstanding Balances with Related Parties :
based on the latest technical assessment of current costs available with the Company The company has entered into transactions with certain related parties as listed below.
as cost of producing properties and has been providing Depletion thereon under The Board considers such transactions to be in normal course of business.
‘Unit of Production’ method as part of Producing Properties in line with Guidance
(Rs. Million)
Note on Accounting of Oil and Gas Producing Activities issued by the Institute of
Chartered Accountants of India. Nature of Transaction Associates/ Key Management
Joint Venture Personnel
8. The company has kept the investment activities separate and distinct from the normal
business. Consequently, all the income and expenditure pertaining to investment activities Contribution towards share of expenditure 1735.31
have been allocated to the Investments & Securities Division and the income/loss after (470.21)
netting off the related expenditure has been shown as “Income/(Loss) from Investments & Remuneration 53.52
Securities Division” under “Other Income”. (64.27)
Outstanding as at 30th September 2007
For the year For the year
ended ended Receivable from unincorporated Joint Venture 35.11
30th Sept., 2007 30th Sept., 2006 (2.18)
(Rs. In Million) (Rs. In Million) Payable to unincorporated Joint Venture 2.14
(0.29)
9. The Income from Investments and
Securities Division includes: 13. Funds mobilised by issue of Foreign Currency Convertible Bonds have been utilised for the
i. Dividends: object of the issue i.e. for expansion of glass shell manufacturing facilities, expansion of
on Long Term Investments 15.71 15.35 consumer electronics and household appliances business and global CPT business.
on Current Investments 1.28 - 14. Reserves:
ii. Debenture/Bond - Interest/Premium: Share of the Company in Ravva Oil & Gas field (Unincorporated) Joint Venture remaining
on Long Term Investments (TDS Rs. 0.17 reserves on proved and probable basis (as per Operator’s estimates)
million (Previous year Rs.3.19 million)) 8.03 14.20
iii. Gain / (Loss) on Sale of Investment:
Particulars Unit of measurement As on As on
Long Term 492.11 172.12
30.09.2007 30.09.2006
Current 254.78 (14.77)
Crude Oil Million Metric Tonnes 2.19 2.77
10. Earnings Per Share:
Natural Gas Million Cubic Metres 490.81 678.36
i. Net Profit attributable to Equity Shareholders
Net Profit as per Profit & Loss Account 7,058.95 7,923.37 15. As required by Accounting Standard 29 “Provisions, Contingent Liabilities and Contingent
Less : Dividend on Preference Shares including Assets” issued by Institute of Chartared Accountants of India the disclosure with respect to
Tax on the same 41.97 38.62 provisions are as follows:
Net Profit attributable to Equity Shareholders As on 30.09.2007
including exceptional Items 7,016.98 7,884.75 Exchange Rate Warranty &
Add/(Less): Exceptional Items (net of taxes) - (131.35) Fluctuation Maintenance
Net Profit attributable to Equity Shareholders Expenses
excluding exceptional Items 7,016.98 7,753.41 (Rs. in Million) (Rs. in Million)
Add : Changes (net) related to FCCBs 22.30 - a) Amount at the beginning of the year - 390.10
Adjusted Net Profit for Diluted EPS 7,039.28 7,753.41 b) Additional provision made during the year 1,023.91 393.83
ii. Weighted Average number of equity shares for c) Amount used - 378.44
Basic EPS 221,019,058 220,986,249 d) Unused amount reversed during the year - -
Weighted Average number of equity shares for e) Amount at the end of the year 1,023.91 405.48
Diluted EPS 239,963,551 220,986,249
16. A. Operating Lease
iii. Basic Earnings per Share including exceptional items Rs. 31.75 Rs. 35.68
Diluted Earnings per Share including exceptional items Rs. 29.33 Rs. 35.68 i) Future obligation of the Company for assets taken on all leases entered into before
1st April 2001 is Rs. Nil.
Basic Earnings per Share excluding exceptional items Rs. 31.75 Rs. 35.09
ii) Subsequent to 1st April, 2001 the Company has entered into operating lease
Diluted Earnings per Share excluding exceptional items Rs. 29.33 Rs. 35.09
agreements for Cars, Buildings and equipments. The lease rentals charged during
iv. Reconciliation of weighted average numbers of the year are Rs. 174.50 million.
Equity Shares outstanding during the year iii) The maximum obligation on long-term non-cancellable operating leases entered on
For Basic Earning Per Share 221,019,058 220,986,249 or after 1st April , 2001 payable as per the rentals stated in respective agreements
Add : Adjustment on account of FCCBS 18,944,493 - are as follows:
For Diluted Earning Per Share 239,963,551 220,986,249
Minimum Lease Payments As at 30.09.07 (Rs. in Million)
11. The Company has invested an amount of Rs. 719.11 million (Net of diminution) in units of
mutual funds out of which investments to the extent of Rs. 550.20 million have been Not later than 1 year 227.98
earmarked against provision for abandonment cost included under the head ‘Other Liabilities’ Later than 1 year and not later than 5 years 949.64
in Schedule 8. More than 5 year 1,864.47
12. Related Party Disclosures
TOTAL 3,042.09
As required under Accounting Standard 18 on “Related Party Disclosure”, the disclosure of
transaction with related parties as defined in the Accounting Standard are given below. B. Finance Lease
a) List of Related Parties i. Reconciliation between minimum lease payment at Balance Sheet date and
i) Associate and Joint Venture its Present Value.
- Ravva Oil & Gas Field (unincorporated) Joint Venture - Participating Interest 25% (Rs. In Million)
- Evans Fraser & Co. (India) Ltd.- Associate a. Total of minimum Lease Payment at the
- WA - 388-P Joint Venture - participating interest 20% Balance Sheet date 48.69
- Block 56 Joint Venture - Oman - participating interest 25% b. Less : Finance Charge 3.34
- EPP 27 Joint Venture - participating interest 25% Total present value of minimum lease payments 45.35
ii) Key Management Personnel (Rs. Million)
- Mr. Venugopal N. Dhoot - Chairman & Managing Director ii. Total of minimum Lease Payment at the Balance Sheet date
- Mr. Pradipkumar N. Dhoot - Whole time Director
- Mr. Henke Dieter Minimum lease Present value of
- Mr. Pradzynski Michal payment minimum lease
- Mr. Albino Bessa payment
- Mr. Neeraj Kumar a. Payable not later than one year 15.00 13.29
- Mr. Marco Padela b. Payable later than 1 year and
- Mr. Sanjay Karwa
not later than 5 years 33.69 32.06
- Mr. Toshihiro Ueki

47
 VIDEOCON INDUSTRIES LIMITED

17. Segment Information

i) The Company and its subsidiaries have identified two reportable segments viz. Crude Oil & Natural Gas and Consumer Electronics & Home Appliances. Segments have been identified and
reported taking into account nature of products and services, the differing risks and return.
a) Segment revenue and expenses include the respective amounts identifiable to each of the segments on the basis of relationship to operating activities of the segment as also
amounts allocated on a reasonable basis. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed
as “Unallocable”
b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other corporate assets and liabilities that cannot
be allocated between the segment are disclosed as “Unallocable”.
c) Primary Segment Information - Business segment:
(Rs. In Million)
Crude Oil & Natural Gas Consumer Electronics & Others Total
Particulars Home Appliances
30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept.,
2007 2006 2007 2006 2007 2006 2007 2006
1. Segment Revenue
- External 14,101.91 14,394.14 111,869.39 115,239.57 - - 125,971.30 129,633.71
- Inter Segment - - - - - - -
Total Segment 14,101.91 14,394.14 111,869.39 115,239.57 - - 125,971.30 129,633.71
2. Segment Result before Interest 4,427.70 4,824.34 6,415.19 4,999.65 - - 10,842.89 9,823.99
Less: Interest Expenses - - - - - - 4,565.37 3,414.46
Add/(Less) Other Unallocable - - - - - - 2,955.74 2,040.42
Profit before Exceptional Items, Minority Interest, Share of Profit
of Associate and Taxation - - - - - - 9,233.26 8,449.95
Add/(Less) : Exceptional Items - - - - - - - 131.35
Add: Adjustment on Disposal of Subsidiaries - - - - - - 18.01 147.09
Less : Provision for Current Tax - - - - - - 1,282.77 916.72
Less : Provision for Deferred Tax - - - - - - 1,085.70 51.02
Less : Provision for Fringe Benefit Tax - - - - - - 23.89 15.41
Profit for the year before Minority Interest and Share of Profit of
Associate - - - - - - 6,858.91 7,745.24
Share of Profit in Associate Company - - - - - - 31.18 23.43
Minority Interest - - - - - - 100.77 (156.67)
Excess provision for Income Tax for earlier years written back - - - - - - 68.08 3.95
Prior Period Adjustments - - - - - - - 307.43
Net Profit for the year - - - - - - 7,058.94 7,923.38

Crude Oil & Natural Gas Consumer Electronics & Unallocable Total
Particulars Home Appliances
30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept., 30th Sept.,
2007 2006 2007 2006 2007 2006 2007 2006
3. Other Information
Segment Assets 3,630.22 3,502.87 147,959.68 147,726.32 18,857.77 11,794.13 170,447.68 163,023.32
Segment Liabilities 1,655.69 1,809.15 86,440.28 92,567.18 13,007.63 3,105.73 101,103.60 97,482.06
Capital Expenditure 4.75 22.26 14,638.42 16,804.89 75.67 26.10 14,718.84 16,853.25
Depreciation 80.02 106.08 5,604.97 4,288.33 66.29 86.12 5,751.28 4,480.53
Non Cash Expenses other than depreciation 833.95 177.36 - - 0.05 0.02 833.99 177.38

ii) Secondary Segment Information

(Rs. In Million)
Particulars Within India Outside India Total
a. Segment Revenue - External Turnover 99,418.69 26,552.61 125,971.30
b. Segment Assets 127,002.19 43,445.49 170,447.68
c. Segment Liabilties 70,116.47 30,987.13 101,103.60
d. Capital Expenditure 9,662.44 5,056.40 14,718.84

As per Accounting Standard 17 on segment reporting (AS-17) issued by the Institute of Chartered Accountants of India, the Company has reported segement information on consolidated basis
including the business conducted through it’s subsidiaries.
18. Capital Reserve on consolidation is net of Goodwill on consolidation of Rs. 93.27 million.
19. Figures in respect of previous year have been regrouped and recasted wherever necessary to make them comparable with those of current year.

48
 Corrigendum

The following are the typesetting errors in the printed Annual Report of the year 2006-2007:

Page. No Nature of typesetting error To be read as

of Annual
Report
13 The segment wise turnover of (Rs. Millions)
the Consumer Electronics &
Home Appliances Segment Current Previous
segment wrongly printed Year ended year ended
under the segment "Crude Oil 30.09.2007 30.09.2006
& Natural Gas" and vice-versa. Consumer 111,869.39 115,239.57
Electronics
and Home
Appliances
Crude Oil 14,101.91 14,394.14
and Natural
Gas

22 Schedule 6 i.e., Investment Rs. 1,773 .79 Million

Schedule (In Equity Shares
(Fully Paid up)) – Others,
printed wrongly as 1,779.79
Million
32 Under serial no. 4(a) Sky Billion Rs. 2,384,859/-
Trading Limited. Amount
wrongly printed as Rs.
2,284,859/-.
40 In the note with * the amount Gross Block of Plant and Machinery includes
wrongly printed as Rs. 9,245.73 Rs. 9,244.75 Million (Previous Year Rs.
million (Previous year Rs. 9,245.73 Million) being the amount added on
9,518.45 million) revaluation on 01.08.1998 and 01.10.2002.

This Corrigendum is being attached to the Annual Report of the Company for the year
2006-07 and is an integral part of the same.
 PROXY FORM
VIDEOCON INDUSTRIES LIMITED
Regd. Office : 14 KM Stone, Aurangabad-Paithan Road, Village Chittegaon, Taluka Paithan, Dist. Aurangabad - 431 105, (Maharashtra)

Regd. Folio No./Client ID No. ..................................................................

I/We .............................................................................................................................................................................................. of

............................................................................................................................................................................... in the district of

........................................................................................................................................ being a Member / Members of the above

named Company hereby appoint .................................................................................................................................................. of

..................................................................... in the district of .............................................................................. or falling him/her

.......................................................................................... of ................................................................................................ in the

district of ................................................................................................................... as my/our proxy to vote for me/our behalf at

the 19th ANNUAL GENERAL MEETING of the Company to be held on Monday, 31st day of March, 2008 at 9.30 A.M. at Registered
Office of the Company at 14 KM Stone, Aurangabad-Paithan Road, Taluka Paithan, Dist. Aurangabad - 431 105, (Maharashtra) and
at any adjournment thereof.
Affix
Rupee 1/-
Revenue
Signed ..............................................this day of ..........................................2008. Stamp

NOTE: This form duly completed and signed should be desposited at the Registered Office of the Company not less than 48 hours
before the time of commencement of the Meeting.
 
ATTENDANCE SLIP

VIDEOCON INDUSTRIES LIMITED

Regd. Office : 14 KM Stone, Aurangabad-Paithan Road, Village Chittegaon, Taluka Paithan, Dist. Aurangabad - 431 105, (Maharashtra)

Regd. Folio No./Client ID No.: ........................................... No. of Shares held .............................................................................

I certify that I am a registered Shareholder/Proxy for the registered Shareholder of the Company.

I hereby record my presence at the 19th ANNUAL GENERAL MEETING of the Company held on Monday, 31st day of March, 2008
at 9.30 A.M. at the Registered Office of the Company at 14 KM Stone, Aurangabad-Paithan Road, Taluka Paithan,
Dist. Aurangabad - 431 105, (Maharashtra)

................................................................................................... ...........................................................................
Member’s / Proxy’s Name in Block Letters Member’s / Proxy’s Signature

NOTE : Please fill in this attendance slip and hand it over at the ENTRANCE OF THE MEETING HALL. Please read errata for type
setting matter.
 BOOK-POST

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