VIDEOCON INDUSTRIES LIMITED ANNUAL REPORT 2017-18 BOARD OF DIRECTORS REGISTERED OFFICE
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&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV NOTICE NOTES 1. IN TERMS OF THE PROVISIONS OF SECTION 105 OF THE NOTICE is hereby given that the Twenty-Eighth Annual General Meeting COMPANIES ACT, 2013, READ WITH RULE 19 OF THE of the Members of VIDEOCON INDUSTRIES LIMITED (the “Company”) COMPANIES (MANAGEMENT AND ADMINISTRATION) RULES, (Company under Corporate Insolvency Resolution Process) will be held 2014, A MEMBER ENTITLED TO ATTEND AND VOTE AT THE on Monday, 17th GD\ RI 'HFHPEHU DW WKH 5HJLVWHUHG 2I¿FH RI ANNUAL GENERAL MEETING (THE “MEETING”) IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF the Company at 14 K. M. Stone, Aurangabad - Paithan Road, Village: HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER Chittegaon, Taluka: Paithan, Dist.: Aurangabad - 431 105 (Maharashtra) OF THE COMPANY. THE INSTRUMENT APPOINTING A PROXY at 11.30 a.m. to transact the following business: SHOULD, HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY-EIGHT ORDINARY BUSINESS HOURS BEFORE THE COMMENCEMENT OF THE MEETING. A PERSON CAN BE A PROXY FOR MEMBERS NOT EXCEEDING 1. To receive, consider and adopt the standalone and consolidated 50 (FIFTY) AND HOLDING IN THE AGGREGATE NOT MORE $XGLWHG6WDWHPHQWRI3UR¿WDQG/RVVIRUWKH)LQDQFLDO
1 Annual Report 2017-18
8. In case of joint holders attending the Meeting, and who have not DUH UHTXHVWHG WR QRWLI\ DQ\ FKDQJH LQ WKHLU DGGUHVV HV WR WKHLU H[HUFLVHG WKHLU ULJKW WR YRWH E\ UHPRWH HYRWLQJ IDFLOLW\ RQO\ VXFK respective Depository Participant. joint holder who is higher in the order of names shall be entitled to 1RQ5HVLGHQW,QGLDQ0HPEHUVDUHUHTXHVWHGWRLQIRUP0V0&6 vote. 6KDUH 7UDQVIHU $JHQW /LPLWHG WKH 5HJLVWUDU DQG 6KDUH 7UDQVIHU 7KHUHPRWHHYRWLQJIDFLOLW\VKDOOEHRSHQHGIURP)ULGD\'HFHPEHU Agent of the Company, immediately of change in their residential 14, 2018 at 9.00 a.m. to Sunday, 16th Day of December, 2018 status on return to India for permanent settlement together with the upto 5.00 p.m., both days inclusive. Detailed instructions of Voting particulars of their Bank Account maintained in India with complete through Electronic Mode, forms part of this Notice. The remote name, branch, account type, account number and address of the e-voting facility shall not be allowed beyond 5.00 p.m. on Sunday, Bank with Pin Code Number, if not furnished earlier. th 16 Day of December, 2018. During the period when facility for 7KH HTXLW\ VKDUHV RI WKH &RPSDQ\ DUH WUDGDEOH FRPSXOVRULO\ LQ remote e-voting is provided, the members of the Company, holding electronic form and your Company has established connectivity with shares either in physical form or in dematerialized form, as on the ERWKWKH'HSRVLWRULHVLH16'/DQG&'6/7DNLQJLQWRFRQVLGHUDWLRQ cut-off date/entitlement date, may opt for remote e-voting. Provided the enormous advantages offered by the Depository System, that once the vote on a resolution is casted by the member, he shall 0HPEHUVDUHUHTXHVWHGWRDYDLOWKHIDFLOLW\RIGHPDWHULDOL]DWLRQRI QRWEHDOORZHGWRFKDQJHLWVXEVHTXHQWO\RUFDVWWKHYRWHDJDLQ the Company’s shares on either of the Depositories, as aforesaid. 10. The Notice of the Meeting is being placed on the website of the 21. The relevant documents referred to in the accompanying notice are Company viz., www.videoconindustriesltd.com and on the website DYDLODEOHIRULQVSHFWLRQDWWKH5HJLVWHUHG2I¿FHRIWKH&RPSDQ\RQ RI&'6/YL]ZZZFGVOLQGLDFRP all working days between 12.00 Noon to 3.00 p.m. upto the date of 11. Mrs. Gayathri R. Girish, Company Secretary in Whole Time Practice the Meeting. (CP No. 9255) or failing her Mr. Sagar Deo, Company Secretary 0HPEHUV GHVLULQJ DQ\ LQIRUPDWLRQ DV UHJDUGV WR WKH )LQDQFLDO in Whole-Time Practice (CP No. 11547), has been appointed as a 6WDWHPHQWV'LUHFWRUV¶5HSRUWDUHUHTXHVWHGWRZULWHWRWKH&RPSDQ\ Scrutinizer for conducting the voting by Ballot at the Meeting and at an early date so as to enable the Management to reply at the remote e-voting process in a fair and transparent manner. 0HHWLQJ 0HPEHUV PD\ DGGUHVV WKHLU TXHULHVFRPPXQLFDWLRQV DW 12. The Scrutinizer shall, immediately after the conclusion of voting at [email protected] WKH0HHWLQJ¿UVWFRXQWWKHYRWHVFDVWHGE\%DOORWDWWKH0HHWLQJ 23. The Annual Report of the Company will be made available on the thereafter unblock the votes casted through remote e-voting in the Company’s website at www.videoconindustriesltd.com. manner provided in the Rules and make, not later than 3 days of conclusion of the Meeting, consolidated Scrutinizer’s Report of 24. 0HPEHUV DUH UHTXHVWHG WR NLQGO\ EULQJ WKHLU FRS\ RI WKH $QQXDO remote e-voting and voting by Ballot at the Meeting, of the total Report to the Meeting. votes casted in favour or against, if any, to the Chairman of the 25. $VRQ0DUFK(TXLW\6KDUHVKHOGE\(TXLW\ Meeting and the Chairman or a person as may be authorized by Shareholders are unclaimed. The Company has transferred all the him in writing shall declare the result of the voting forthwith and unclaimed shares into one folio in the name of “Videocon Industries all the resolutions as mentioned in the Notice of the Meeting shall /LPLWHG ± 8QFODLPHG 6XVSHQVH $FFRXQW´ DQG GHPDWHULDOLVHG WKH be deemed to be passed on the date of the Meeting. The results said shares. All those shareholders whose shares are unclaimed declared along with the report of the Scrutinizer shall be placed on DUH UHTXLUHG WR FRQWDFW WKH &RPSDQ\ RU 0V 0&6 6KDUH the website of the Company at www.videoconindustriesltd.com and 7UDQVIHU$JHQW /LPLWHG 5HJLVWUDU 6KDUH7UDQVIHU$JHQWV RI WKH RQWKHZHEVLWHRI&'6/DWZZZFGVOLQGLDFRPLPPHGLDWHO\DIWHUWKH Company with self attested copy of PAN Card for each of the joint results are declared by the Chairman. VKDUHKROGHU V DQGDGGUHVVSURRI2QUHFHLSWRIWKHUHTXHVWOHWWHU 7KH&RPSDQ\KDV¿[HG0RQGD\th Day of December, 2018 as DQG RQ YHUL¿FDWLRQ RI WKH &RPSDQ\ VKDOO DUUDQJH WR FUHGLW WKH the cut-off date/entitlement date for identifying the Shareholders VKDUHVO\LQJLQWKH8QFODLPHG6XVSHQVH$FFRXQWWRGHPDWDFFRXQW for determining the eligibility to vote by electronic means or in the RI FRQFHUQ VKDUHKROGHU RU GHOLYHU WKH VKDUH FHUWL¿FDWH V DIWHU UH 0HHWLQJE\%DOORW,QVWUXFWLRQVIRUH[HUFLVLQJYRWLQJULJKWVE\UHPRWH materialisation. The voting rights on such shares shall remain frozen e-voting are attached herewith and forms part of this Notice. A till the rightful owner claims the shares. person whose name is recorded in the Register of Members or in 26. *5((1 ,1,7,$7,9( 6HFXULWLHV ([FKDQJH %RDUG RI ,QGLD WKH WKH 5HJLVWHU RI %HQH¿FLDO 2ZQHUV PDLQWDLQHG E\ WKH GHSRVLWRULHV Ministry of Corporate Affairs encourages paperless communication as on the cut-off/ entitlement date only shall be entitled to avail the as a contribution to greener environment. E-mail communications to facility of remote e-voting as well as voting at the Annual General WKHVKDUHKROGHUVZLOOUHVXOWLQPXOWLSOHEHQH¿WVDVXQGHU Meeting. 1. Timely receipt of all communications without any transit loss. 14. The Voting Rights will be reckoned on the paid-up value of shares 2. Helping in protecting environment and conservation of registered in the name of shareholders on Monday, December resources. 10, 2018, the cut-off date/entitlement date for identifying the Shareholders for determining the eligibility to vote by electronic (DV\VWRUDJHLQVRIWFRS\WKHUHE\HOLPLQDWLQJWKHUHTXLUHPHQW means or at the Meeting by Ballot. RIVWRUDJHRIEXON\GRFXPHQWVIRUVXEVHTXHQWUHIHUHQFH 15. The Register of Members and Share Transfer Books shall remain 7KH &RPSDQ\ ZLOO VLPXOWDQHRXVO\ GLVSOD\ IXOO WH[W RI WKH $QQXDO closed from Monday, December 10, 2018 to Monday, December 17, Report and other shareholders’ communications on its website viz., 2018 (both days inclusive) for the purpose of the Meeting. www.videoconindustriesltd.com, as soon as the same is e-mailed to the shareholders and will also be made available for inspection at 16. Members who have not encashed dividend warrant(s) for the year WKH5HJLVWHUHG2I¿FHRIWKH&RPSDQ\GXULQJWKHRI¿FHKRXUV RQZDUGV DUH UHTXHVWHG WR FRQWDFW 0V 0&6 6KDUH 7UDQVIHU $JHQW /LPLWHG 5HJLVWUDU DQG 6KDUH 7UDQVIHU $JHQW IRU 0HPEHUVKROGLQJVKDUHVLQSK\VLFDOPRGHDUHUHTXHVWHGWRUHJLVWHU VHHNLQJ LVVXH RI GXSOLFDWH ZDUUDQW V 0HPEHUV DUH UHTXHVWHG WR WKHLUHPDLO,'¶VZLWKWKH0V0&66KDUH7UDQVIHU$JHQW/LPLWHG QRWHWKDWQRFODLPVVKDOOOLHDJDLQVWWKH&RPSDQ\RU,(3)LQUHVSHFW the Registrar and Transfer Agent of the Company and Members of any amounts which were unclaimed and unpaid for a period of KROGLQJVKDUHVLQGHPDWPRGHDUHUHTXHVWHGWRUHJLVWHUWKHLUHPDLO VHYHQ\HDUVIURPWKHGDWHWKH\¿UVWEHFDPHGXHIRUSD\PHQWDQG ID’s with their respective Depository Participants (DPs) in case the no payment shall be made in respect of any such claims. same is still not registered. If there is any change in the e-mail ID DOUHDG\ UHJLVWHUHG ZLWK WKH &RPSDQ\ 0HPEHUV DUH UHTXHVWHG WR 17. Members who hold shares in physical form, under multiple folios, in immediately notify such change to the Registrar and Transfer Agent identical names or joint accounts in the same order or names, are of the Company in respect of shares held in physical form and to UHTXHVWHGWRVHQGWKHVKDUHFHUWL¿FDWHVWR0V0&66KDUH7UDQVIHU their respective Depository Participants in respect of shares held in $JHQW /LPLWHG 5HJLVWUDU DQG 7UDQVIHU$JHQW RI WKH &RPSDQ\ IRU electronic form. consolidation into a single folio. 27. SEBI vide circular No. SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 0HPEHUV KROGLQJ VKDUHV LQ SK\VLFDO IRUP DUH UHTXHVWHG WR NLQGO\ dated April 20, 2018, inter-alia, mandated all the Registrar and Share notify any change in their address(es) to the Company, so as to 7UDQVIHU$JHQWVDQGDOOWKH/LVWHG&RPSDQLHVWRFROOHFWFRS\RISDQ enable the Company to address future communications to their DQG EDQN GHWDLOV DQG XSGDWH WKH .<& RI DOO WKH VHFXULW\ KROGHUV correct address(es). Members holding shares in electronic form
2 holding securities in physical form. Hence, all the members are [LL 2Q WKH YRWLQJ SDJH \RX ZLOO VHH ³5(62/87,21 '(6&5,37,21´ UHTXHVWHGWRXSGDWHWKHLQIRUPDWLRQE\¿OOLQJXSWKHIRUPDWWDFKHG DQG DJDLQVW WKH VDPH WKH RSWLRQ ³<(612´ IRU YRWLQJ 6HOHFW WKH with this report and send all the supporting documents to MCS Share RSWLRQ <(6 RU 12 DV GHVLUHG 7KH RSWLRQ <(6 LPSOLHV WKDW \RX 7UDQVIHU$JHQWV/LPLWHG 5DQG7$JHQWV RIWKH&RPSDQ\E\ZULWLQJ assent to the Resolution and option NO implies that you dissent to WKHPDW$ &:LQJQGÀRRU*RNXO,QGXVWULHV(VWDWH%XLOGLQJ the Resolution. 6DJEDXJ0DURO&RRS,QGXVWULDO$UHD%+7LPHV6TXDUH$QGKHUL [LLL &OLFN RQ WKH ³5(62/87,216 ),/( /,1.´ LI \RX ZLVK WR YLHZ WKH (DVW 0XPEDL 7HO )D[ entire Resolution details. E-mail: [email protected]. [LY $IWHU VHOHFWLQJ WKH UHVROXWLRQ \RX KDYH GHFLGHG WR YRWH RQ FOLFN REMOTE E-VOTING INSTRUCTIONS RQ³68%0,7´$FRQ¿UPDWLRQER[ZLOOEHGLVSOD\HG,I\RXZLVKWR The instructions for shareholders voting electronically are as under: FRQ¿UP\RXUYRWHFOLFNRQ³2.´HOVHWRFKDQJH\RXUYRWHFOLFNRQ L 7KH YRWLQJ SHULRG EHJLQV RQ )ULGD\ 'HFHPEHU DW ³&$1&(/´DQGDFFRUGLQJO\PRGLI\\RXUYRWH a.m. and ends on Sunday, December 16, 2018 at 5.00 p.m. During [Y 2QFH\RX³&21),50´\RXUYRWHRQWKHUHVROXWLRQ\RXZLOOQRWEH this period shareholders’ of the Company, holding shares either allowed to modify your vote. in physical form or in dematerialized form, as on the cut-off date th [YL [ )RU 0HPEHUV KROGLQJ VKDUHV LQ SK\VLFDO IRUP WKH GHWDLOV FDQ EH KAUSTUBHA A. SAHASRABUDHE used only for e-voting on the resolutions contained in this Notice. Place: Mumbai COMPANY SECRETARY [L &OLFNRQWKH(961IRUVideocon Industries Limited on which you Date: November 23, 2018 MEMBERSHIP NO. ACS 21165 choose to vote. 3 Annual Report 2017-18 A STATEMENT SETTING OUT THE MATERIAL FACTS PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013 Item No. 3 7KH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\RQWKHUHFRPPHQGDWLRQRIWKH$XGLW&RPPLWWHHKDVDSSURYHGWKHDSSRLQWPHQWRI0U-D\DQW%*DODQGH (Membership No. 5255), Cost Accountant in Whole-Time Practice, Aurangabad, as Cost Auditor of the Company to conduct the audit of the cost DFFRXQWLQJUHFRUGVRIWKH&RPSDQ\IRUWKH¿QDQFLDO\HDUFRPPHQFLQJIURP$SULOWR0DUFK DWDUHPXQHUDWLRQRI5V 5XSHHV 2QH/DNK7HQ7KRXVDQG2QO\ H[FOXGLQJDSSOLFDEOH*RRGVDQG6HUYLFHV7D[UHLPEXUVHPHQWRIWUDYHOOLQJDQGRWKHURXWRISRFNHWH[SHQVHVDWDFWXDO ,Q WHUPV RI WKH SURYLVLRQV RI 6HFWLRQ RI WKH &RPSDQLHV$FW UHDG ZLWK 5XOH RI WKH &RPSDQLHV $XGLW $XGLWRUV 5XOHV WKH UHPXQHUDWLRQSD\DEOHWRWKH&RVW$XGLWRUVVKDOOEH¿[HGE\WKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\RQWKHUHFRPPHQGDWLRQRIWKH$XGLW&RPPLWWHHDQG WKHVDPHVKDOOEHVXEVHTXHQWO\UDWL¿HGE\WKHVKDUHKROGHUVRIWKH&RPSDQ\DWDJHQHUDOERG\PHHWLQJ $FFRUGLQJO\FRQVHQWRIWKHPHPEHUVLVVRXJKWE\SDVVLQJDQ2UGLQDU\5HVROXWLRQDVVHWRXWDW,WHP1RRIWKH1RWLFHIRUUDWL¿FDWLRQRIWKHUHPXQHUDWLRQ SD\DEOHWRWKH&RVW$XGLWRUVIRUWKH¿QDQFLDO\HDUFRPPHQFLQJIURP$SULO 1RQHRIWKH'LUHFWRUV.H\0DQDJHULDO3HUVRQQHORIWKH&RPSDQ\WKHLUUHODWLYHVDUHLQDQ\ZD\FRQFHUQHGRULQWHUHVWHG¿QDQFLDOO\RURWKHUZLVHLQWKH resolution. The Board recommends the Ordinary Resolution set out at Item No. 3 of the Notice for approval of the members. For VIDEOCON INDUSTRIES LIMITED (A Company under Corporate Insolvency Resolution Process by NCLT order dated June 6, 2018) KAUSTUBHA A. SAHASRABUDHE Place: Mumbai COMPANY SECRETARY Date: November 23, 2018 MEMBERSHIP NO. ACS 21165 BRIEF PROFILE OF THE DIRECTOR SEEKING APPOINTMENT/RE- APPOINTMENT/ CONFIRMATION AT THE ENSUING ANNUAL GENERAL MEETING [PURSUANT TO REGULATION 36(3) OF SECURITIES AND EXCHANGE BOARD OF INDUS (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECRETARIAL STANDARD ON GENERAL MEETINGS (SS-2) ISSUED BY THE INSTITUTE OF COMPANY SECRETARIES OF INDIA]: PARTICULARS PROFILE OF DIRECTOR Name of the Director Mr. Venugopal N. Dhoot DIN 00092450 Date of Birth September 30, 1951 Age (in years) 66 (GXFDWLRQ4XDOL¿FDWLRQ Bachelor of Engineering Date of Appointment -XQH Category of the Director 3URPRWHU([HFXWLYH $UHDRIH[SHUWLVH:RUNH[SHULHQFH +HLVDQLQGXVWULDOLVW+HKDVH[SHULHQFHVSDQQLQJRYHUIRXUGHFDGHVLQ GLYHUVL¿HG¿HOGVVXFKDVFRQVXPHUHOHFWURQLFVDQGKRPHDSSOLDQFHVRLO and gas and power. He was the President of the Associated Chambers of Commerce and Industry in India and Electronic Industries Association of Marathwada. Terms and Conditions of Appointment or Re-appointment along with the As per the terms and conditions stated in the Agreement entered between details of remuneration sought to be paid Mr. Venugopal N. Dhoot and the Company. +HLVHQWLWOHGIRU1,/UHPXQHUDWLRQ Mr. Venugopal N. Dhoot is also designated, in addition to the Managing 'LUHFWRURIWKH&RPSDQ\DVWKH&KLHI([HFXWLYH2I¿FHURIWKH&RPSDQ\ Remuneration last drawn Nil Number of Board Meetings attended during the period 6 1DPHVRIRWKHU'LUHFWRUVKLSVLQ3XEOLF/LPLWHG&RPSDQLHVLQZKLFKWKH 9LGHRFRQ(QHUJ\/LPLWHG Director holds Directorship 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG 929//LPLWHG 4. .$,//LPLWHG Names of the other Committees in which Chairman* Nil Names of the other Committees in which Member* 9LGHRFRQ(QHUJ\/LPLWHG $XGLW 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG $XGLW .$,//LPLWHG $XGLW Number of Shares held 89,575 Relationship with other Directors, Manager and Key Managerial Personnel NA of the Company. * Committee membership includes only Audit Committee and Stakeholders’ Relationship Committee of public limited companies. ** Directorships includes only Public Limited Companies as on March 31, 2018. 4 Addendum 9LGHRFRQ,QGXVWULHV/LPLWHG WKH³&RPSDQ\´ LVXQGHUJRLQJ&RUSRUDWH,QVROYHQF\5HVROXWLRQ3URFHVV µ&,53¶ XQGHUWKHSURYLVLRQVRI7KH,QVROYHQF\ %DQNUXSWF\&RGH ¶,%&¶ LQWHUPRIRUGHUGDWHG-XQHSDVVHGE\+RQ¶EOH1DWLRQDO&RPSDQ\/DZ7ULEXQDO0XPEDL%HQFK µ1&/7¶ SXUVXDQW WRDQDSSOLFDWLRQ¿OHGE\WKH6WDWH%DQNRI,QGLDXQGHU6HFWLRQRI,%& %\YLUWXHRIWKHVDPHRUGHU+RQ¶EOH1&/7DSSRLQWHG0U$QXM-DLQ ,35HJLVWUDWLRQ1R,%%,,3$,33 DVWKH,QWHULP5HVROXWLRQ 3URIHVVLRQDO6XEVHTXHQWO\WKH&RPPLWWHHRI&UHGLWRUV &2& ZKLFKZDVIRUPHGSXUVXDQWWRWKHSURYLVLRQVRIWKH&RGHDWLWV¿UVWPHHWLQJKHOGRQ-XO\ DSSRLQWHG0U$QXM-DLQDVWKH5HVROXWLRQ3URIHVVLRQDO,QDFFRUGDQFHZLWKWKHSURYLVLRQVRI,%&RQFRPPHQFHPHQWRI&,53WKHSRZHUVRIWKH %RDUGRI'LUHFWRUVRIWKH&RPSDQ\VWDQGVVXVSHQGHGDQGLVEHLQJH[HUFLVHGE\WKH5HVROXWLRQ3URIHVVLRQDO )XUWKHUWKH&2&PHHWLQJVKDYHEHHQFRQYHQHGIURPWLPHWRWLPHRQYDULRXVDJHQGDDVSHUWKHSURYLVLRQVRI,%&DQGKDYHEHHQDWWHQGHGE\WKH members of COC and member(s) of the suspended Board of the Company. The Resolution Professional, pursuant to the provisions of the IBC and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations (CIRP Regulations), invited prospective resolution applicants to submit resolution plan for the Company. The EDVLFHOLJLELOLW\FULWHULDIRUWKHSURVSHFWLYHUHVROXWLRQDSSOLFDQWVZDVSXEOLVKHGLQWKHQRWLFHFRS\ZKHUHRIZDVFLUFXODWHGWRWKH6WRFN([FKDQJH V RQ 6HSWHPEHU+RZHYHU+RQ¶EOH1&/7YLGH2UGHUGDWHG2FWREHUSXUVXDQWWRDQDSSOLFDWLRQGLUHFWHGWKH5HVROXWLRQ3URIHVVLRQDOWR WHPSRUDULO\GHIHUIXUWKHUDFWLRQRQWKHDERYHXQWLOWKHRXWFRPHRIDVHSDUDWHSHWLWLRQPRYHGZLWK1&/73ULQFLSDO%HQFKVHHNLQJFRQVROLGDWLRQRI&,53 of the Company with other group entities. 6XEVHTXHQWO\1&/73ULQFLSDO%HQFKRQ2FWREHUGLUHFWHGWRWUDQVIHUDOOLQVROYHQF\SHWLWLRQVUHODWHGWRFHUWDLQ9LGHRFRQJURXSHQWLWLHVWRRQH EHQFKDW1&/70XPEDLDQGOHIWRSHQWKHPDWWHURIVXEVWDQWLYHFRQVROLGDWLRQWREHGHFLGHGE\1&/70XPEDLEHQFK)XUWKHU6WDWH%DQNRI,QGLDKDV ¿OHGDSHWLWLRQDW1&/70XPEDLEHQFKIRUVXEVWDQWLYHFRQVROLGDWLRQRI&,53RIJURXSHQWLWLHVZKLFKLV\HWWREHKHDUG It is hereby informed that an application was moved by Resolution Professional under section 96 of Companies Act, 2013 with the Registrar of Companies IRUH[WHQVLRQRIWLPHIRUKROGLQJ$QQXDO*HQHUDO0HHWLQJE\DSHULRGRI0RQWKVRQWKHJURXQGVWKDW&,53LVXQGHUJRLQJDQGKHKDVWRDFKLHYHDQXPEHU of milestones in a time-bound manner. Pursuant to such application, the Registrar of Companies, Mumbai, Maharashtra, vide its order dated September JUDQWHGH[WHQVLRQRIWLPHIRUKROGLQJ$QQXDO*HQHUDO0HHWLQJE\DSHULRGRIPRQWKV Accordingly, Resolution Professional has instructed the Company Secretary to convene the 28th Annual General meeting on Monday, December 17, 2018, and issue the Notice of Annual General Meeting in terms of the resolution(s) passed by the Board of Directors prior to Commencement of CIRP. 7KH$QQXDO*HQHUDO0HHWLQJLVEHLQJKHOGZLWKLQWKHH[WHQGWLPHSHULRG For VIDEOCON INDUSTRIES LIMITED (A Company under Corporate Insolvency Resolution Process by NCLT order dated June 6, 2018) Anuj Jain IP Registration No: IBBI/IP-P00142-2017-2018 /10306 Resolution Professional Dated: November 23, 2018 Place: Mumbai 5 Annual Report 2017-18 DIRECTORS’ REPORT OIL & GAS: The Co Dear Shareholders, PSDQ\FRQWLQXHVWRH[SORUHPRUHDQGPRUHRSSRUWXQLWLHVLQ 2LODQG*DVVHFWRU,QWKH\HDUWKH8QLWHG6WDWHVFRQ¿UPHG 7 Annual Report 2017-18 R & D activities carried out in various consumer electronics products RISK MANAGEMENT POLICY OF THE COMPANY DQGEHQH¿WVGHULYHGIURPWKHVHDFWLYLWLHV The Company has in place the Risk Management Policy to identify the Engaged in Internet of Things (IoT) technology, which will delight the risk elements and manage, monitor and report on the principal risks and customers by creating a web of seamless connectivity between TV uncertainties that can impact its ability to achieve its strategic objectives. and other home appliances. 7KH&RPSDQ\KDVSURSHUFRQ¿GHQWLDOLWLHVDQGSULYDF\SROLFLHVWRFRQWURO ULVN HOHPHQWV 7KH &RPSDQ\ KDV ZKHUHYHU UHTXLUHG WDNHQ LQVXUDQFH ,QWURGXFHG YDULRXV UDQJH RI 79V8+' 79V LQWHUDOLD LQFOXGLQJ policies to protect the property, assets etc. IHDWXUHV VXFK DV ³/LTXLG /XPLQRXV 7HFKQRORJ\´ ZKLFK JUHDWO\ HQKDQFHVSLFWXUHTXDOLW\ ´8+'79WKURXJKZKLFKFXVWRPHUVFDQ The Company has formed Risk Management Committee. The scope and H[SHULHQFHWKHDWULFDODPELHQFHLQWKHFRQYHQLHQFHRIWKHLUKRPHV composition of the Committee forms part of the Corporate Governance PRELOHDXGLRIHDWXUHV DQG(6KDUHIHDWXUHV 5HSRUW)XUWKHUWKHPHPEHUVRIWKH5LVN0DQDJHPHQW&RPPLWWHHDQG the senior management personnel review the Risk Management Policy Changes in the Product cooling system and upgraded electrical SHULRGLFDOO\DQGGLVFXVVDQGPLWLJDWHWKHLGHQWL¿HGULVNVIURPWLPHWRWLPH parts from safety point of view for the entire range of direct cool refrigerators. CORPORATE SOCIAL RESPONSIBILITY POLICY Corporate Social Responsibility (CSR) has been a commitment at the 8SJUDGDWLRQDFURVVYDULRXVUDQJHVRIIURVWIUHHUHIULJHUDWRUV Company and forms an integral part of our activities. Introduced various range of Digi/Alpha Series of washing machines. We are focusing on identifying and motivating the skills of the physically $U\DERW $& GHYHORSPHQW 6RODU $& GHYHORSPHQW 1RQ &)& ± challenged youth and helping them to enhance them. This is based on 5HIULJHUDQW$&GHYHORSPHQW ,QYHUWHU$&GHYHORSPHQW DQG*PDUN the belief that growth and development are effective only when they result DQG&%DSSURYHGDLUFRQGLWLRQHUPRGHOVIRUH[SRUW LQZLGHUDFFHVVWRRSSRUWXQLWLHVDQGEHQH¿WDEURDGHUVHFWLRQRIVRFLHW\ Introduced various range of mobile phones. The Company has formed a CSR committee in terms of the provisions of Section 135 of the Companies Act, 2013 and Rules made there-under Future plan of action: read along with Schedule VII of the Act. The scope and composition of the In near future, the Company shall focus on environment friendly products committee forms part of the Corporate Governance Report. with latest technologies which could offer better products in the domestic )XUWKHUVLQFHWKHDYHUDJHQHWSUR¿WIRUWKHWKUHHLPPHGLDWHO\SUHFHGLQJ as well as international market. The Company has the following plans ¿QDQFLDO \HDUV ZDV QHJDWLYH WKH &RPSDQ\ KDV QRW PDGH DQ\ &65 WKURXJK5 ' H[SHQGLWXUHLQVSHFL¿F 7RIRFXVRQWKHSLFWXUHTXDOLW\ZLWKULFKYLEUDQWFRORUVUHPDUNDEOH HEALTH & SAFETY brightness, and a higher range of colors endowed with deeper 6DIHW\LVDQDUHDRISDUDPRXQWLPSRUWDQFHLQRXU&RPSDQ\$ZHOOGH¿QHG blacks and brighter whites that can be enjoyed by our customers occupational health and safety management system is in place to ensure within value for money. WKHVDIHW\RIHPSOR\HHVZRUNIRUFHDVZHOODVHTXLSPHQWDQGPDFKLQHU\ &RQWLQXHWRHQJDJHLQ,QWHUQHWRI7KLQJV ,R7 WHFKQRORJ\ZKLFKZLOO 2XU &RPSDQ\ FRQWLQXHV WR H[KLELW D UREXVW DVVXUDQFH WRZDUGV 6DIHW\ delight the customers by creating a web of seamless connectivity Health and Environment during the period under review. between TV and other home appliances. Apart from the health and safety measures to be adopted under various &RVWUHGXFWLRQSURMHFWVWKURXJKQHZLQQRYDWLYHGHVLJQLGHDVDFURVV UHJXODWRU\ UHTXLUHPHQWV WKH IROORZLQJ +HDOWK VDIHW\ LQLWLDWLYHV ZKLFK both frost free and direct cool refrigerators were adopted in the past were continued to be under implementation in the year under review: 7R EULQJ LQ ZDVKLQJ PDFKLQHV ZLWK H[FHOOHQW ZDVK SHUIRUPDQFH DORQJVLGH(QHUJ\DQGZDWHUHI¿FLHQWGHVLJQVFDWHULQJWRHQYLURQPHQW 5HJXODUFRXQVHOLQJDQGPHGLFDOFKHFNXSVWRHQVXUH¿WQHVVRILWV EHQH¿WVDQGYDOXHIRUPRQH\IRURXUFXVWRPHUV employees. $UUDQJHPHQWV DW PDQXIDFWXULQJ SODQWV IRU HQVXULQJ VDIHW\ DQG ,QWURGXFWLRQ RI ,QYHUWHU FRPSUHVVRU WR WKH H[LVWLQJ IURVW IUHH absence of risks to health in connection with the use, handling, refrigerator series. storage and transport of articles and substances. 3URGXFWGHYHORSPHQWZLWKQHZUHIULJHUDQWDQGUHGXFWLRQLQ*OREDO 7R FUHDWH PDVV DZDUHQHVV DPRQJ DOO ZRUNHUV FHOHEUDWHG 6DIHW\ warming potential. SURPRWLRQDODFWLYLWLHVOLNH±1DWLRQDOVDIHW\ZHHN)LUHVHUYLFHZHHN (QHUJ\ HI¿FLHQW $& GHYHORSPHQW DV SHU WKH QHZ ,6((5 UDWLQJ Electrical safety Week. norms. (VWDEOLVKHGD&&79FRQWUROURRPLQUHVSHFWLYHVKRSÀRRUVDUHDVIRU the close monitoring of safety and Emergency purpose. ,PSURYHG6DWHOOLWHFRQWUROOHGPRGHOZLWKVXSSRUWE\,26DQG$QGURLG technology. )LUHH[WLQJXLVKHU %DOOW\SH WRDWWHQGLPPHGLDWHVPDOO¿UHLQFDVHRI emergency. During the period under review, the Company has incurred ` 3.75 Million )LUH'HPRQVWUDWLRQNLWDQGWUDLQLQJWRDOOHPSOR\HHVDQGZRUNPHQ UHSUHVHQWLQJRIWKHWXUQRYHUWRZDUGVUHFXUULQJ5 'H[SHQVHV 'LVSOD\ RI DOO (PHUJHQF\ ([LW DQG (YDFXDWLRQ SODQ LQ DXWR JORZ FOREIGN EXCHANGE EARNINGS AND OUTGO ERDUGDWVKRSÀRRUV 7KH SDUWLFXODUV RI )RUHLJQ ([FKDQJH (DUQLQJV DQG 2XWJR GXULQJ WKH ,QVWDOOHGVDIHORDGHULQVWUXPHQWWR(27FUDQHDW0ROGLQJGLYLVLRQWR ¿QDQFLDOSHULRGHQGHGRQ0DUFKDUHVHWRXWKHUHXQGHU DYRLGFUDQHDFFLGHQWDWVKRSÀRRUDUHD (` In Million) $GGLWLRQDOVWRSSHUSURYLGHGLQ/27FUDQHWRHQVXUHFUDQHZLOOKDOWLQ VSHFL¿HGORFDWLRQ Particulars Financial Year 15 months ended Period ended ,QVWDOODWLRQRI/3*JDVGHWHFWRUDWSDLQWVKRSLQ/3*JDVEDQNDUHD March 31, 2018 March 31, 2017 'H¿QHGWKH¿UHSRLQWVDWKLJKKD]DUGDUHD =RQH )RUHLJQ([FKDQJH(DUQLQJV 5,134.35 10,462.73 'LVSOD\HG 0DWHULDO 6DIHW\ 'DWD 6KHHW 0DWUL[ DW +LJK +D]DUG DQG )RUHLJQ([FKDQJH2XWJR 9,268.37 32,127.50 =HUR =RQH DUHD DQG DW FKHPLFDO VWRUDJH DUHD DV SHU 5XOH 0 IURP0DKDUDVKWUD)DFWRU\5XOHV 8 3URYLVLRQRI6DIHW\HTXLSPHQW¶VLQFDPSXVVXFKDV3*JDVGHWHFWRU We as an enterprise are fully focused on leveraging complete advantage 5RDG &RQYH[ PLUURU )LUH EODQNHW )LUH %XFNHW )LUVW DLG ER[ DQG of various IT support systems which helps us to be the leader in our space Breathing Apparatus set. DQGKHOSLQJXVLQUHGXFLQJWKHFRVWLQFUHDVLQJRXUSUR¿WPDUJLQVEULQJLQJ 6WULFWO\DGKHUHWRKRWZRUNSHUPLWV\VWHPZLWKDYDLODELOLW\RIVHFXULW\ HI¿FLHQF\LQRXURSHUDWLRQVEXLOGLQJFRQWUROVHWF guard for close monitoring. 9 Annual Report 2017-18 RI'LUHFWRURIWKH&RPSDQ\RQSHUVRQDOJURXQGVZHI-DQXDU\ CONSOLIDATED FINANCIAL STATEMENTS )XUWKHURQ-XQHWKH%RDUGDOVRWRRNRQUHFRUGWKHUHVLJQDWLRQ $V VWLSXODWHG E\ 5HJXODWLRQ RI WKH 6HFXULWLHV DQG ([FKDQJH %RDUG WHQGHUHGE\0U$VKXWRVK*XQHIURPWKHRI¿FHRI&KLHI)LQDQFLDO2I¿FHU RI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV of the Company. WKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVKDYHEHHQSUHSDUHGE\WKH DECLARATION GIVEN BY INDEPENDENT DIRECTORS Company in accordance with the applicable Accounting Standards. The $XGLWHG&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVWRJHWKHUZLWK$XGLWRUV¶5HSRUW The Company has received necessary declaration from each Independent form part of the Annual Report. Director of the Company under Section 149(7) of the Companies Act, DQG WKH SURYLVLRQV RI 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD Pursuant to the provisions of Section 136 of the Companies Act, 2013, /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV WKH ¿QDQFLDO VWDWHPHQWV RI WKH VXEVLGLDU\ DVVRFLDWHV DQG MRLQW YHQWXUH companies will be kept for inspection by the shareholders at the ³/LVWLQJ5HJXODWLRQV´ VWDWLQJWKDWWKH\PHHWWKHFULWHULDRILQGHSHQGHQFH 5HJLVWHUHG2I¿FHRIWKH&RPSDQ\GXULQJZRUNLQJKRXUVIRUDSHULRGRI as provided therein. days before the date of the Annual General Meeting. The Company will NUMBER OF MEETINGS OF THE BOARD HELD DURING THE PERIOD SURYLGHWKHFRS\RIWKH¿QDQFLDOVWDWHPHQWVRILWVVXEVLGLDULHVDVVRFLDWHV 'XULQJWKH¿QDQFLDOSHULRGXQGHUUHYLHZWKH%RDUGPHW 6HYHQ WLPHV DQGMRLQWYHQWXUHFRPSDQLHVWRWKHVKDUHKROGHUVXSRQWKHLUUHTXHVW7KH The details regarding the attendance and the date of Board Meetings are audited accounts are also available on the website of the Company viz. provided in the Corporate Governance Report. www.videoconindustriesltd.com COMMITTEES OF THE BOARD CASH FLOW STATEMENT Pursuant to the provisions of the Companies Act, 2013 and provisions 7KH &DVK )ORZ 6WDWHPHQW IRU WKH \HDU HQGHG 0DUFK LQ conformity with the provisions of the Companies Act, 2013 and Securities RI WKH /LVWLQJ 5HJXODWLRQV WKH &RPSDQ\ KDV FRQVWLWXWHG IROORZLQJ Committees: DQG ([FKDQJH %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQVZLWKWKH6WRFN([FKDQJHVLQ,QGLDLV 1. Audit Committee DQQH[HGKHUHWR 2. Nomination and Remuneration Committee AUDITORS AND THEIR REPORTS 3. Stakeholders’ Relationship Committee 1. STATUTORY AUDITORS AND AUDIT REPORT: 4. Corporate Social Responsibility Committee 0HVVUV 6 = 'HVKPXNK &R &KDUWHUHG $FFRXQWDQWV 0XPEDL 5. Risk Management Committee )LUP5HJLVWUDWLRQ1R: ZHUHDSSRLQWHGDVWKH6WDWXWRU\ $XGLWRUVRIWKH&RPSDQ\WRKROGRI¿FHIRUDWHUPRI\HDUVIURP 5HRUJDQL]DWLRQ&RPPLWWHH DQG the conclusion of the 27th Annual General Meeting (AGM) held on )LQDQFHDQG*HQHUDO$IIDLUV&RPPLWWHH December 22, 2017 until the conclusion of the 32nd Annual General The composition, scope and powers of the aforementioned Committees Meeting of the Company. together with details of meetings held during the period under review, 3XUVXDQW WR WKH 1RWL¿FDWLRQ LVVXHG E\ WKH 0LQLVWU\ RI &RUSRUDWH forms part of Corporate Governance Report. Affairs on May 7, 2018, amending section 139 of the Companies $FWWKHPDQGDWRU\UHTXLUHPHQWIRUUDWL¿FDWLRQRIDSSRLQWPHQW FORMAL ANNUAL EVALUATION of Auditors by the Members at every Annual General Meeting has During the period under review, pursuant to the provisions of the been omitted. Accordingly, the Board is not seeking approval of &RPSDQLHV $FW DQG 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD PHPEHUVE\SDVVLQJDUHVROXWLRQIRUUDWL¿FDWLRQRI$XGLWRUV /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQVWKH AUDIT REPORT: Nomination and Remuneration Committee adopted a formal mechanism for evaluating the performance of the Board of Directors as well as that The Statutory Auditors of the Company have submitted Auditors’ of its Committees and individual Directors, including Chairman of the 5HSRUW ZKLFK KDYH FHUWDLQ 4XDOL¿FDWLRQV RQ WKH 6WDQGDORQH DQG &RQVROLGDWHG)LQDQFLDO6WDWHPHQWVIRUWKHSHULRGHQGHGRQ0DUFK %RDUG.H\0DQDJHULDO3HUVRQQHO6HQLRU0DQDJHPHQWHWFWKHH[HUFLVH 31, 2018. was carried out through an evaluation process covering aspects such as FRPSRVLWLRQRIWKH%RDUGH[SHULHQFHFRPSHWHQFLHVJRYHUQDQFHLVVXHV 0DQDJHPHQW¶V([SODQDWLRQWRWKH$XGLWRUV¶4XDOL¿FDWLRQV etc. Standalone: LISTING D ,Q UHVSHFW RI WKH TXDOL¿FDWLRQ ZLWK UHJDUGV WR H[WHQW RI 7KH HTXLW\ VKDUHV RI \RXU &RPSDQ\ DUH OLVWHG RQ WKH %6( /LPLWHG realisability of investments of Rs. 75,339.53 Million in Videocon )RUPHUO\ 7KH %RPED\ 6WRFN ([FKDQJH /LPLWHG DQG 7KH 1DWLRQDO 7HOHFRPPXQLFDWLRQV/LPLWHG 97/ WKHVXEVLGLDU\DQGHIIHFW RQJRLQJFRQFHUQDELOLW\RI97/FRQVHTXHQWWRDFFXPXODWHG 6WRFN([FKDQJHRI,QGLD/LPLWHG 16( 7KH*OREDO'HSRVLWRU\5HFHLSWV ORVVHV DQG UHIHUUDO RI 97/ WR 1&/7WKH H[SODQDWLRQ RI *'5V DQG )RUHLJQ &XUUHQF\ &RQYHUWLEOH %RQGV )&&%V LVVXHG E\ management is as under: \RXU&RPSDQ\DUHOLVWHGRQWKH%RXUVHGH/X[HPERXUJDQG6LQJDSRUH ([FKDQJH6HFXULWLHV7UDGLQJ/LPLWHGUHVSHFWLYHO\ 'XULQJWKH\HDU97/KDVLQFXUUHGDQHWORVVRI5V Million resulting into accumulated losses of Rs. 67,022.59 CORPORATE GOVERNANCE 0LOOLRQDVDW0DUFK97/KDVDOVRVKXWGRZQLWV*60 7KH&RPSDQ\KDVFRPSOLHGZLWKWKHFRUSRUDWHJRYHUQDQFHUHTXLUHPHQWV VHUYLFHV7KRXJK97/KDVKXJHDFFXPXODWHGORVVHVLWVQHW under the Companies Act, 2013, and as stipulated under the Securities worth as on March 31, 2018 is positive and the management DQG ([FKDQJH %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH RI 97/ LV FRQ¿GHQW RI FRQWLQXLQJ LWV FRPPHUFLDO RSHUDWLRQV 5HTXLUHPHQWV 5HJXODWLRQV $ VHSDUDWH VHFWLRQ RQ &RUSRUDWH LQWKH1DWLRQDO/RQJ'LVWDQFH 1/' DQG,QWHUQDWLRQDO/RQJ *RYHUQDQFHXQGHUWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ 'LVWDQFH ,/' %XVLQHVV$FFRUGLQJO\WKH¿QDQFLDOVWDWHPHQWV 2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQVDORQJZLWK RI97/KDYHEHHQSUHSDUHGRQDJRLQJFRQFHUQEDVLV DFHUWL¿FDWHIURPWKHDXGLWRUVFRQ¿UPLQJWKHFRPSOLDQFHLVDQQH[HGDQG E ,QUHVSHFWRIWKHTXDOL¿FDWLRQZLWKUHJDUGVWRSHUVLVWHQWVHYHUH forms part of this Annual Report. strains on the working capital and considerable decline in level of operations of the Company and continuous losses incurred 10 by the Company and also referral of the Company to National KDVSDUWLFLSDWLQJLQWHUHVWRILQ5DYYD2LODQG*DV)LHOG &RPSDQ\/DZ7ULEXQDOWKHH[SODQDWLRQRIPDQDJHPHQWLVDV -RLQW9HQWXUHWKURXJKD3URGXFWLRQ6KDULQJ&RQWUDFW 36& under: The Company incorporates its share in the operations of the 6WDWH%DQNRI,QGLDWKH/HDG%DQNRI&RPSDQ\KDVLQLWLDWHG joint venture based on statement of account received from Corporate Insolvency Resolution Process (CIRP) for the WKH -RLQW 9HQWXUH2SHUDWRU 7KH &RPSDQ\ KDV UHFHLYHG WKH Company under the Insolvency and Bankruptcy Code, 2016 DXGLWHG¿QDQFLDOVWDWHPHQWVXSWRVW0DUFKDQGXQ DVDPHQGHGDQGKDV¿OHGWKHSHWLWLRQLQ1DWLRQDO&RPSDQ\ DXGLWHG¿QDQFLDOVWDWHPHQWVIRUWKHSHULRGVW$SULOWR /DZ7ULEXQDO0XPEDLWKHPDWWHULVLQFRQVLGHUDWLRQRI1&/7 31st March, 2018, in respect of the said joint venture from In the view of above and in view of the persistent severe WKH2SHUDWRUZKLFKKDVEHHQFHUWL¿HGE\WKHPDQDJHPHQWRQ strains on the working capital for more than a year, there is ZKLFKZHKDYHSODFHGUHOLDQFH0DQDJHPHQW¶V([SODQDWLRQLV VLJQL¿FDQWGURSLQWKHSURGXFWLRQDQGVDOHRISURGXFWVZKLFK as under: raises doubt on the ability of the Company to continue as ,Q WKH SDVW WKHUH ZDV QR FKDQJH LQ WKH XQDXGLWHG ¿QDQFLDO “going concern” for the purpose of activities and operations VWDWHPHQWVDQGWKHDXGLWHG¿QDQFLDOVWDWHPHQWV+HQFHWKH of the Company along with activities and operations of other PDQDJHPHQWLVQRWH[FHSWLQJDQ\LPSDFWRIWKHVDPH co-obligor companies. Also the referral of the Company, in Consolidated OLQH ZLWK WKH GLUHFWLYHV RI 5HVHUYH %DQN RI ,QGLD WR 1&/7 under the Insolvency and Bankruptcy Code, 2016 by lenders, D ,Q UHVSHFW RI $XGLWRU¶V 4XDOL¿FDWLRQ LQ $XGLW 5HSRUW RQ WKH amounts to a very material event. On this background during &RQVROLGDWHG ,QG $6 )LQDQFLDO 6WDWHPHQWV IRU WKH ¿QDQFLDO \HDU the year the Company has discarded and /or disposed off HQGHGRQVW0DUFKUHJDUGLQJWKHVLJQL¿FDQWGRXEWRQWKH certain current assets in view of the same being irretrievable 9LGHRFRQ7HOHFRPPXQLFDWLRQ/LPLWHG97/¶VDELOLW\WRFRQWLQXHDVD for the purpose of business. The Company continues the JRLQJFRQFHUQGXHWRUHIHUHQFHRI97/WR1&/7E\WKHFUHGLWRUVRI SURFHVV RI DVFHUWDLQLQJ WKH OLTXLGDWLRQ YDOXH IRU UHPDLQLQJ 97/WKHH[SODQDWLRQRI0DQDJHPHQWLVDVXQGHU FXUUHQW DVVHWV VXFK DV UDZ PDWHULDOV ¿QLVKHG JRRGV VWRFN 'XULQJWKH\HDU97/KDVLQFXUUHGDQHWORVVRI5V 0LOOLRQ LQSURFHVVUHFHLYDEOHVHWFMXV¿DEO\DVVXPLQJWKDWWKHJRLQJ resulting into accumulated losses of Rs. 67,022.59 Million as at concern concept stands vitiated and necessary adjustments 0DUFK97/KDVDOVRVKXWGRZQLWV*60VHUYLFHV7KRXJK will be affected in the due course. 97/ KDV KXJH DFFXPXODWHG ORVVHV LWV QHW ZRUWK DV RQ 0DUFK F ,QUHVSHFWRIWKHTXDOL¿FDWLRQZLWKUHJDUGVWRQRQDVVHVVPHQW LV SRVLWLYH DQG WKH PDQDJHPHQW RI 97/ LV FRQ¿GHQW RI RUUHYLHZRIWKHSODQWDQGPDFKLQHU\DQGRWKHU¿[HGDVVHWV FRQWLQXLQJLWVFRPPHUFLDORSHUDWLRQVLQWKH1DWLRQDO/RQJ'LVWDQFH related to the Glass Shell division for the impairment and the 1/' DQG,QWHUQDWLRQDO/RQJ'LVWDQFH ,/' %XVLQHVV$FFRUGLQJO\ impairment loss, if any, which has not been ascertained, the WKH ¿QDQFLDO VWDWHPHQWV RI 97/ KDYH EHHQ SUHSDUHG RQ D JRLQJ H[SODQDWLRQRIPDQDJHPHQWLVDVXQGHU concern basis. The manufacturing activity of Glass Shell division which E ,QUHVSHFWRI$XGLWRU¶V4XDOL¿FDWLRQLQ$XGLW5HSRUWRQWKH,QG$6 manufactured panels and funnels used in Colour Picture Tube &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV IRU WKH ¿QDQFLDO \HDU HQGHG RI&RORXU7HOHYLVLRQKDVEHHQVXVSHQGHGIURP-XO\GXH on 31st March, 2018 regarding determination of the impairment to poor demand. However, the Company has not assessed ORVVRQLWVDVVHWVLQFOXGLQJDVVHWVKHOGIRUVDOHWKHH[SODQDWLRQRI RUUHYLHZHGWKHSODQWDQGPDFKLQHU\DQGRWKHU¿[HGDVVHWV Management is as under: related to the Glass Shell division for the impairment and &RQVHTXHQWWR97/¶VDJUHHPHQWGDWHG0DUFKZLWK%KDUWL the impairment loss, if any, has not been ascertained. The $LUWHO/LPLWHGIRUWUDGLQJWKHULJKWWRXVH[0+]VSHFWUXPDOORFDWHG management is of the view that the said factory and facilities to it in the 6 circles, GSM Network Assets including Assets held for FDQEHZLWKVRPHPRGL¿FDWLRQVXVHGIRUSURGXFWLRQRIVRODU Sale of Rs. 9,163.20 Million (As at March 31, 2017 Rs. 9,321.37 SDQHO JODVV VRODU OHQVH JODVV ¿EUH DQG JODVV EORFNV DQG Million) has been shown under “Current Assets” as ‘Disposal group- accordingly, no provision for impairment has been considered DVVHWV KHOG IRU 6DOH¶ 97/ LV LQ WKH SURFHVV RI DVFHUWDLQLQJ WKH necessary for the assets of the glass shell division at this LPSDLUPHQWORVVLIDQ\RQLWV¿[HGDVVHWVLQFOXGLQJFDSLWDOZRUNLQ stage. SURJUHVV7KHUHTXLVLWHDFFRXQWLQJHIIHFWLIDQ\ZLOOEHJLYHQXSRQ Emphasis of Matter in Standalone Financial Statements such ascertainment/determination. The Auditors of the Company has given emphasis of the matter in F ,QUHVSHFWRI$XGLWRU¶V4XDOL¿FDWLRQLQ$XGLW5HSRUWRQWKH,QG$6 WKH6WDQGDORQH,QG$66WDQGDUG)LQDQFLDO6WDWHPHQWVDVIROORZV &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV IRU WKH ¿QDQFLDO \HDU HQGHG on 31st March, 2018 regarding realizability of the advances of Rs. L 7KH EDODQFH FRQ¿UPDWLRQV DQG UHFRQFLOLDWLRQ KDYH QRW been received in respect of certain secured and unsecured 0LOOLRQ PDGH E\ 97/ WR 4XDGUDQW7HOHYHQWXUHV/LPLWHG loans, balances with banks, trade receivables, trade and µ47/¶ IRUWKHSURSRVHGDFTXLVLWLRQRILQGHIHDVLEOHULJKWRIXVH ,58 other payables and loans and advances. In the opinion of WKH8$6/LFHQVHRI3XQMDEFLUFOHWKHH[SODQDWLRQRIPDQDJHPHQWLV as under: the management, there will not be any material impact on WKH6WDQGDORQH,QG$6)LQDQFLDO6WDWHPHQWV([SODQDWLRQRI 97/ KDG JLYHQ DGYDQFHV RI 5V 0LOOLRQ WR 4XDGUDQW Management is as under: 7HOHYHQWXUHV /LPLWHG 47/ IRU WKH SURSRVHG DFTXLVLWLRQ RI 7KH &RQ¿UPDWLRQ DQG UHFRQFLOLDWLRQ RI EDODQFHV RI FHUWDLQ LQGHIHDVLEOH5LJKWVRI8VH ,58 WKH8$6/LFHQVHRI47/LQ3XQMDE secured and unsecured loans, balances with banks, trade circle, subject to regulatory approvals. The same has been converted receivables, trade and other payables and loans and LQWR8QVHFXUHG=HUR&RXSRQ&RPSXOVRU\&RQYHUWLEOH'HEHQWXUHV advances are pending the management is in the process of of face value Rs. 1000/- each (CCD) (Convertible into 2% Non- REWDLQLQJ FRQ¿UPDWLRQ DQG UHFRQFLOLDWLRQ RI EDODQFHV ,Q WKH Cumulative, Non-Convertible, Redeemable Preference Shares). opinion of management, there will not be any material impact 97/LVLQSURFHVVRIDVFHUWDLQLQJWKHIDLUYDOXHRI8QVHFXUHG=HUR RQWKHVWDQGDORQH,QGLDQ$6¿QDQFLDO6WDWHPHQWV Coupon Compulsory Convertible Debentures and its accounting impact, if any, will be given upon such fair valuation. LL 7KH 6WDQGDORQH ,QG $6 6WDQGDUG )LQDQFLDO 6WDWHPHQWV UHÀHFW WKH VKDUH RI WKH &RPSDQ\ LQ WKH DVVHWV DQG WKH G ,QUHVSHFWRI$XGLWRU¶V4XDOL¿FDWLRQLQ$XGLW5HSRUWRQWKH,QG$6 OLDELOLWLHV DV ZHOO DV WKH LQFRPH DQG H[SHQGLWXUH RI MRLQW &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV IRU WKH ¿QDQFLDO \HDU HQGHG venture operations on a line by line basis. The Company on 31st March, 2018 regarding inability to ascertain the fair value 11 Annual Report 2017-18 of the investment of Rs, 16662.27 Million made by the subsidiary DQG KDYH VSHQW VLJQL¿FDQW DPRXQWV RQ DFTXLVLWLRQV H[SORUDWLRQV 9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHGWKHH[SODQDWLRQRIPDQDJHPHQW and evaluation costs and have liabilities on this account, in the is as under: absence of commercial operations, the ability to continue as a going 7KH VXEVLGLDU\ 9LGHRFRQ 0DXULWLXV (QHUJ\ /LPLWHG 90(/ KROGV concern is substantially dependent on their ability to raise funds or LQYHVWPHQWV RI 5V 0LOOLRQ FODVVL¿HG DV XQTXRWHG FRQWLQXRXV¿QDQFLDOVXSSRUWIURP3DUHQW&RPSDQ\7KHH[SODQDWLRQ LQYHVWPHQWV LQ HTXLW\ LQVWUXPHQWV ¿QDQFLDO DVVHWV ZKLFK KDYH of management is as under: been recognised at cost, and have not been carried at fair value. 929/ /LPLWHG 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG WKH 7KH$XGLWRUVRI90(/KDYHJLYHQGLVFODLPHURIRSLQLRQDVLWKDVQRW subsidiary’s main activity is investing in oil and natural gas EHHQSRVVLEOHWRHVWLPDWHWKH¿QDQFLDOHIIHFWVRIQRWFDUU\LQJWKHVH H[SORUDWLRQDVVHWVRXWVLGH,QGLDWKURXJKLWVVXEVLGLDULHVDQGMRLQWO\ investments at fair value. FRQWUROOHGFRPSDQLHV7KHH[SORUDWLRQDQGHYDOXDWLRQDVVHWVXQGHU H ,QUHVSHFWRI$XGLWRU¶V4XDOL¿FDWLRQLQ$XGLW5HSRUWRQWKH,QG$6 subsidiaries namely Videocon Indonesia Nunukan Inc., Videocon &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV IRU WKH ¿QDQFLDO \HDU HQGHG $XVWUDOLD :$3 /LPLWHG 9LGHRFRQ -3'$ /LPLWHG DQG on 31st March, 2018 regarding non assessment of the plant and XQGHU WKH MRLQW YHQWXUH FRPSDQ\ ,%9 %UDVLO 3HWUROHR /LPLWDGD PDFKLQHU\DQGRWKHU¿[HGDVVHWVUHODWHGWRWKH*ODVV6KHOOGLYLVLRQ MRLQWYHQWXUHLQWHUHVWKHOGE\9LGHRFRQ(QHUJ\%UD]LO/LPLWHG DUH IRU WKH LPSDLUPHQW DQG WKH LPSDLUPHQW ORVV WKH H[SODQDWLRQ RI LQ WKH H[SORUDWLRQDSSUDLVDO VWDJH DQG WKH\ KDYH VSHQW VLJQL¿FDQW management is as under: DPRXQWV RQ WKH DFTXLVLWLRQ H[SORUDWLRQ DQG HYDOXDWLRQ FRVWV DQG have liability on this account. At present they are not generating The manufacturing activity of Glass Shell division located at revenue. The recovery of these costs is subject to success of their Bharuch, which manufactured panels and funnels used in colour H[SORUDWLRQ HIIRUWV DW WKHVH ORFDWLRQV 7KH FRQGLWLRQV LQGLFDWHV SLFWXUH WXEH IRU FRORXU WHOHYLVLRQ KDV EHHQ VXVSHQGHG IURP -XO\ H[LVWHQFHRIVLJQL¿FDQWXQFHUWDLQW\WKDWFRXOGOHDGVLJQL¿FDQWGRXEW 2017 due to poor demand of these products due to changes in about the continuity of the said subsidiary companies and joint technology for colour televisions. The management is of the view venture company. The ability of these companies to continue as WKDWWKHVDLGIDFWRU\DQGIDFLOLWLHVFDQEHZLWKVRPHPRGL¿FDWLRQV a going concern is substantially dependent on their ability to raise XVHGIRUSURGXFWLRQRIVRODUSDQHOJODVVVRODUOHQVHJODVV¿EUHDQG IXQGVRUFRQWLQXRXV¿QDQFLDOVXSSRUWIURP3DUHQW&RPSDQ\WRPHHW glass blocks which have good demand in the market. In view of the WKHLURSHUDWLQJDQGFDSLWDOH[SHQGLWXUHUHTXLUHPHQWV above, no provision for impairment has been considered necessary for the assets of the glass shell division at this stage. E &HUWDLQ EDODQFH FRQ¿UPDWLRQV DQG UHFRQFLOLDWLRQ KDYH QRW EHHQ received in respect of certain secured and unsecured loans, I ,QUHVSHFWRI$XGLWRU¶V4XDOL¿FDWLRQLQ$XGLW5HSRUWRQWKH,QG$6 balances with banks, trade receivables, trade and other payables &RQVROLGDWHG)LQDQFLDO6WDWHPHQWVIRUWKH¿QDQFLDO\HDUHQGHGRQ and loans and advances. In the opinion of the management, there 31st March, 2018 regarding the vatiation of going concern concept ZLOOQRWEHDQ\PDWHULDOLPSDFWRQWKHFRQVROLGDWHG,QG$6¿QDQFLDO RI WKH 6XEVLGLDU\ (OHFWURZRUOG 'LJLWDO 6ROXWLRQV /LPLWHG ('6/ statements. TKHH[SODQDWLRQRIPDQDJHPHQWLVDVXQGHU DQG 97/ GXH WR UHIHUHQFH RI ERWK WKH FRPSDQLHV WR 1&/7 WKH H[SODQDWLRQRIPDQDJHPHQWLVDVXQGHU 7KHFRQ¿UPDWLRQVDQGUHFRQFLOLDWLRQRIEDODQFHVRIFHUWDLQVHFXUHGDQG unsecured loans, balances with banks, trade receivables, trade and State Bank of India, the lead bank of the Parent Company has other payables and loans and advances are pending. The management initiated Corporate Insolvency Resolution Process (CIRP) for the LV LQ WKH SURFHVV RI REWDLQLQJ FRQ¿UPDWLRQV DQG UHFRQFLOLDWLRQ RI Parent Company and also for the subsidiaries Electroworld Digital balances. In the opinion of the management, there will not be any 6ROXWLRQV/LPLWHG ('6/ DQG9LGHRFRQ7HOHFRPPXQLFDWLRQV 97/ PDWHULDOLPSDFWRQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWV under the Insolvency and Bankruptcy Code, 2016 as amended and KDV ¿OHG WKH SHWLWLRQ LQ 1DWLRQDO &RPSDQ\ /DZ 7ULEXQDO 1&/7 F 7KHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVUHÀHFWWKHVKDUHRIWKH 0XPEDL 7KH PDWWHU LV XQGHU FRQVLGHUDWLRQ RI WKH 1&/7 ,Q YLHZ Company in the assets and the liabilities as well as the income and of the above and in view of the persistent severe strains on the H[SHQGLWXUHRIMRLQWYHQWXUHRSHUDWLRQVRQDOLQHE\OLQHEDVLV7KH ZRUNLQJFDSLWDOIRUPRUHWKDQD\HDUWKHUHLVDVLJQL¿FDQWGURSLQ Company has participating interest of 25% in Ravva Oil and Gas the production and sale of products which raises doubt on the ability )LHOG-RLQW9HQWXUHWKURXJKD3URGXFWLRQ6KDULQJ&RQWUDFW 36& of the Parent Company to continue as “Going Concern” for the The Company incorporates its share in the operations of the joint purpose of activities and operations of the Parent Company along YHQWXUH EDVHG RQ VWDWHPHQW RI DFFRXQW UHFHLYHG IURP WKH -RLQW with activities and operations of other co-obligor companies. Also, 9HQWXUH2SHUDWRU7KH&RPSDQ\KDVUHFHLYHGWKHDXGLWHG¿QDQFLDO WKHUHIHUUDORIWKH3DUHQW&RPSDQ\('6/DQG97/LQOLQHZLWKWKH VWDWHPHQWVXSWR0DUFKDQGXQDXGLWHG¿QDQFLDOVWDWHPHQWV GLUHFWLYHVRI5HVHUYH%DQNRI,QGLDWR1&/7XQGHUWKH,QVROYHQF\ for the period April 1, 2017 to March 31, 2018, in respect of the and Bankruptcy Code by lenders, amounts to a very material event. VDLGMRLQWYHQWXUHIURPWKH2SHUDWRUZKLFKKDVEHHQFHUWL¿HGE\WKH On this background during the year, the Parent Company has management on which we have placed reliance. TKHH[SODQDWLRQRI discarded and /or disposed of certain current assets in view of the management is as under: same being irretrievable for the purpose of business. The Company ,Q SDVW WKHUH ZDV QR FKDQJHVGLIIHUHQFHV LQ XQDXGLWHG ¿QDQFLDO FRQWLQXHV WKH SURFHVV IRU DVFHUWDLQLQJ WKH OLTXLGDWLRQ YDOXH IRU VWDWHPHQWV DQG DXGLWHG ¿QDQFLDO VWDWHPHQWV +HQFH WKH UHPDLQLQJ FXUUHQW DVVHWV VXFK DV UDZ PDWHULDOV ¿QLVKHG JRRGV PDQDJHPHQWLVQRWH[SHFWLQJDQ\LPSDFWRQWKHVDPH VWRFNLQSURFHVV UHFHLYDEOHV HWF MXVWL¿DEO\ DVVXPLQJ WKDW WKH 2. COST AUDITOR AND COST AUDIT REPORT: going concern concept stands vitiated and necessary adjustments will be effected in the due course. In accordance with the provisions of Section 148 of the Companies $FWUHDGZLWKWKH&RPSDQLHV $XGLW $XGLWRUV 5XOHV Emphasis On Matter In Consolidated Financial Statements: and amendments made thereto, from time to time, the Board of $SDUWIURPWKHDERYHTXDOL¿FDWLRQVWKHDXGLWRUVKDYHGUDZQWKHLUDWWHQWLRQ Directors of the Company have accorded its approval for appointment WRHPSKDVLVRQWKHPDWWHUV7KHH[SODQDWLRQRIPDQDJHPHQWLVDVXQGHU RI0U-D\DQW%*DODQGH&RVW$FFRXQWDQWLQ:KROH7LPH3UDFWLFH a. The Subsidiaries / joint venture companies namely Videocon Aurangabad (Membership Number 5255) as the Cost Auditor of the +\GURFDUERQ +ROGLQJV /LPLWHG 9LGHRFRQ -3'$ /LPLWHG Company, to conduct audit of Cost Accounting Records maintained Videocon Indonesia Nunukan Inc., Videocon Australia WA-388-P E\ WKH &RPSDQ\ IRU WKH ¿QDQFLDO \HDU FRPPHQFLQJ IURP$SULO /LPLWHG 9LGHRFRQ (QHUJ\ %UD]LO /LPLWHG DQG WKH MRLQW YHQWXUH 2018 to March 31, 2019 in respect of the products covered as below: ,%9 %UDVLO 3HWUROHR /LPLWDGD DUH LQ H[SORUDWLRQDSSUDLVDO VWDJH 12 1. Electricals or Electronic Machinery EXTRACT OF ANNUAL RETURN 2. Other Machinery and Mechanical Appliances 7KH H[WUDFW RI$QQXDO 5HWXUQ SXUVXDQW WR WKH SURYLVLRQV RI 6HFWLRQ 3. Glass of the Companies Act, 2013, read with Rule 12 of the Companies 0DQDJHPHQW DQG$GPLQLVWUDWLRQ 5XOHV LV DQQH[HG KHUHZLWK DV 4. Petroleum Products $QQH[XUH In compliance with the provisions, the remuneration payable to the ORDERS PASSED BY REGULATORS/COURTS/ TRIBUNALS &RVW$XGLWRU KDV WR EH UDWL¿HG E\ WKH PHPEHUV RI WKH &RPSDQ\ No material orders were passed by Regulators/ Courts / Tribunals during Accordingly, consent of the Members is sought by way of an the period impacting the going concern status and Company’s operations 2UGLQDU\5HVROXWLRQIRUUDWL¿FDWLRQRIWKHUHPXQHUDWLRQDPRXQWLQJWR in future. ` 5XSHHV2QH/DNK7HQ7KRXVDQG2QO\ SOXVDSSOLFDEOH WD[DQGRXWRISRFNHWH[SHQVHVSD\DEOHWRWKH&RVW$XGLWRUIRUWKH DIRECTOR RESPONSIBILITY STATEMENT ¿QDQFLDO\HDUFRPPHQFLQJIURP$SULOWR0DUFK In accordance with the provisions of Section 134(5) of the Companies Act, In compliance with provisions of the Companies (Cost Records and 2013 the Board hereby submit its responsibility Statement: $XGLW 5XOHVDQGDPHQGPHQWVPDGHWKHUHWR IURPWLPHWRWLPH (a) in the preparation of the annual accounts, the applicable accounting and General Circulars thereof, we hereby submit that the Company VWDQGDUGVKDGEHHQIROORZHGDORQJZLWKSURSHUH[SODQDWLRQUHODWLQJ KDV¿OHGWKH&RVW$XGLW5HSRUWIRUWKH¿QDQFLDO\HDUHQGHGRQ0DUFK WRPDWHULDOGHSDUWXUHV RQ-DQXDU\7KHGHOD\LQ¿OLQJZDVDFFRXQWRI (b) the directors had selected such accounting policies and applied WHFKQLFDOGLI¿FXOWLHV them consistently and made judgments and estimates that are 7KH&RPSDQ\VKDOO¿OHWKH&RVW$XGLW5HSRUWIRUWKH¿QDQFLDO\HDU reasonable and prudent so as to give a true and fair view of the ended on March 31, 2018, on or before due date. VWDWHRIDIIDLUVRIWKHFRPSDQ\DWWKHHQGRIWKH¿QDQFLDO\HDUDQGRI 3. SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT: WKHORVVRIWKH&RPSDQ\IRUWKDWSHULRG F WKHGLUHFWRUVKDGWDNHQSURSHUDQGVXI¿FLHQWFDUHIRUWKHPDLQWHQDQFH The Board had appointed Mr. Soumitra Mujumdar, Company RIDGHTXDWHDFFRXQWLQJUHFRUGVLQDFFRUGDQFHZLWKWKHSURYLVLRQV Secretary in Whole-time Practice, (CP No.: 12363) to carry out of this Act for safeguarding the assets of the Company and for Secretarial Audit under the provisions of Section 204 of the SUHYHQWLQJDQGGHWHFWLQJIUDXGDQGRWKHULUUHJXODULWLHV &RPSDQLHV $FW IRU WKH ¿QDQFLDO SHULRG HQGHG RQ 0DUFK (d) the directors had prepared the annual accounts on a going concern 7KH UHSRUW RI WKH 6HFUHWDULDO$XGLWRU LV DQQH[HG WR WKLV EDVLV UHSRUW DV $QQH[XUH 7KH 6HFUHWDULDO $XGLWRU KDV PDGH FHUWDLQ REVHUYDWLRQV LQ KLV 6HFUHWDULDO $XGLW 5HSRUW 7KH H[SODQDWLRQ RI H WKHGLUHFWRUVKDGODLGGRZQLQWHUQDO¿QDQFLDOFRQWUROVWREHIROORZHG management is as under: E\ WKH FRPSDQ\ DQG WKDW VXFK LQWHUQDO ¿QDQFLDO FRQWUROV DUH DGHTXDWHDQGZHUHRSHUDWLQJHIIHFWLYHO\ DQG 7KH 1RQ¿OLQJ RI HIRUP 0*7 IRU FKDQJHV LQ VKDUHKROGLQJ (f) the directors had devised proper systems to ensure compliance with positions of promoters/promoter group entities, e-form MGT-14 for the provisions of all applicable laws and that such systems were DSSURYDO RI VWDQGDORQH ¿QDQFLDO VWDWHPHQWV ,(3) ,(3) ZDV DGHTXDWHDQGRSHUDWLQJHIIHFWLYHO\ RQ DFFRXQW RI WHFKQLFDO GLI¿FXOWLHV DQGRU DFFLGHQWDO RPLVVLRQ RQ ACKNOWLEDGEMENT SDUWRIWKH&RPSOLDQFH2I¿FHU',5LQUHVSHFWRIUHVLJQDWLRQRI 0U5DGKH\VK\DP$JDUZDOZDVQRW¿OHGEHFDXVHERDUGFRQVLGHUHG :H ZRXOG OLNH WR WKDQN WKH &XVWRPHUV 9HQGRUV ,QYHVWRUV )LQDQFLDO DQGWDNHQRQUHFRUGVKLVUHVLJQDWLRQRQ-XQHRQO\'HOD\ Institutions, Bankers, Business Partners and Government Authorities for LQ ¿OLQJ RI IRUP ',5 IRU DSSRLQWPHQW RI &(2 LV RQ DFFRXQW RI their continued support. We also appreciate the contribution made by the employees at all levels for their hard work, dedication, co-operation and WHFKQLFDOGLI¿FXOWLHV)XUWKHUGXHWRDFFLGHQWDORPLVVLRQWKHVKDUHV support for the growth of the Company. ZHUHQRWWUDQVIHUUHGWR,(3)7KH&RPSDQ\LVLQSURFHVVRI¿OLQJDOO WKHIRUPV DQGWUDQVIHUULQJXSSDLGXQFODLPHGGLYLGHQGDVZHOODV The Board of Directors would also like to thank all stakeholders for the VKDUHVWR,(3)XQGHUWKHDPHQGHGSURYLVLRQVRI&RPSDQLHV$FW FRQWLQXHGFRQ¿GHQFHDQG trust placed by them upon the Company. 2013 and Rules made thereunder. The delay in compliance with the UHTXLUHPHQW XQGHU YDULRXV UHJXODWLRQ RI 6HFXULWLHV DQG ([FKDQJH For VIDEOCON INDUSTRIES LIMITED %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV Regulations, 2015 was on account of operational delay. V. N. Dhoot DETAILS OF FRAUDS REPORTED BY AUDITORS (OTHER THAN Place: Mumbai Chairman, Managing Director and CEO REPORTABLE TO CENTRAL GOVERNMENT) Date: -XQH DIN:00092450 No fraud/misconduct was detected at the time of statutory audit by $XGLWRUVRIWKH&RPSDQ\IRUWKH¿QDQFLDO\HDUHQGHGRQ0DUFK INTERNAL FINANCIAL CONTROLS, INTERNAL AUDIT AND OTHER INITIATIVES 7KH &RPSDQ\ KDV LQ SODFH DGHTXDWH LQWHUQDO ¿QDQFLDO FRQWUROV ZLWK UHIHUHQFHWR¿QDQFLDOVWDWHPHQWV'XULQJWKHSHULRGVXFKFRQWUROVZHUH tested and no reportable material weakness in the design or operation were observed. The Company, in compliance with the provisions of Section 138 of the Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rule 2014, has in place in-house internal audit team led by in house internal auditor to carry out the audit of internal records maintained by the Company. 13 Annual Report 2017-18 ANNEXURE - 2 SECRETARIAL AUDIT REPORT To L 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD /LVWLQJ ObligatiRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV The Members, ,KDYHDOVRH[DPLQHGFRPSOLDQFHZLWKWKHDSSOLFDEOHFODXVHVRIWKHIROORZLQJ 9LGHRFRQ,QGXVWULHV/LPLWHG i. Secretarial Standards issued by The Institute of Company 14 K.M. Stone, Aurangabad Paithan Road, Secretaries of India. Village Chittegaon, Taluka Paithan, Aurangabad - 431105 ,KDYHUHOLHGRQWKHUHSUHVHQWDWLRQPDGHE\WKH&RPSDQ\DQGLWVRI¿FHUV Maharashtra for the systems and mechanisms formed by the Company for compliances XQGHUDSSOLFDEOH$FWV5XOHV/DZVDQG5HJXODWLRQVWRWKH&RPSDQ\ I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices ,KDYHQRWH[DPLQHGFRPSOLDQFHE\WKH&RPSDQ\ZLWKDSSOLFDEOH¿QDQFLDO ODZVOLNHGLUHFWDQGLQGLUHFWWD[ODZVDQGWKHLUUHJXODWRU\FRPSOLDQFHV E\ 9LGHRFRQ ,QGXVWULHV /LPLWHG KHUHLQDIWHU FDOOHG WKH ³&RPSDQ\´ VLQFHWKHVDPHKDYHEHHQVXEMHFWWRUHYLHZE\VWDWXWRU\¿QDQFLDODXGLW Secretarial Audit was conducted in a manner that provided me a DQG RWKHU GHVLJQDWHG SURIHVVLRQDOV )XUWKHU , KDYH DOVR QRW H[DPLQHG reasonable basis for evaluating the corporate conducts/statutory compliance by the Company with the applicable labour, industrial, FRPSOLDQFHVDQGH[SUHVVLQJP\RSLQLRQWKHUHRQ HQYLURQPHQWDODQGRWKHULQGXVWU\VSHFL¿FODZVVLQFHWKHFRPSOLDQFHDQG %DVHGRQP\YHUL¿FDWLRQRIWKH&RPSDQ\¶VERRNVSDSHUVPLQXWHERRNV monitoring of the said laws are to be ensured by the management of the IRUPV DQG UHWXUQV ¿OHG DQG RWKHU UHFRUGV PDLQWDLQHG E\ WKH &RPSDQ\ Company. DQG DOVR WKH LQIRUPDWLRQ SURYLGHG E\ WKH &RPSDQ\ LWV RI¿FHUV DJHQWV During the period under review, the Company has complied with the and authorized representatives during the conduct of secretarial audit, provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. I hereby report that in my opinion, the Company has, during the audit mentioned above subject to the following observation: SHULRGFRYHULQJWKH¿QDQFLDO\HDUIURP$SULOWR0DUFK 8QGHU&RPSDQLHV$FW (“Audit Period”) complied with the statutory provisions listed hereunder i. As per Section III (Annexure 6) (Para 2.2d) of the Foreign Direct and also that the Company has proper Board-processes and compliance- Investment Policy, the return of Foreign Assets and Liabilities for PHFKDQLVP LQ SODFH WR WKH H[WHQW LQ WKH PDQQHU DQG VXEMHFW WR WKH WKH&XUUHQWDQGSUHYLRXV$XGLW3HULRGVKDVQRWEHHQ¿OHGIRUWKH reporting made hereinafter: Company with the Reserve Bank of India. ,KDYHH[DPLQHGWKHERRNVSDSHUVPLQXWHERRNVIRUPVDQGUHWXUQV¿OHG ii. As on date of this report, WKH&RPSDQ\KDVQRWFRPSOHWHG¿OLQJRI DQGRWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\IRUWKH¿QDQFLDO\HDUHQGHG e-form MGT-7 as prescribed under Section 92 of the Companies on March 31, 2018 according to the provisions of: Act, 2013 and e-form AOC-4 XBRL as prescribed under Section 137 L 7KH&RPSDQLHV$FW WKH³$FW´ DQGWKHUXOHVPDGHWKHUHXQGHU RIWKH&RPSDQLHV$FWLHWKH$QQXDO)LOLQJIRUWKH¿QDQFLDO period ended on March 31, 2017. ii. The Securities Contracts (Regulation) Act, 1956 (“SCRA”) and the iii. During the period under review, it was observed that the Company UXOHVPDGHWKHUHXQGHU KDVQRW¿OHGHIRUP0*7DVSUHVFULEHGXQGHU6HFWLRQ RIWKH iii. The Depositories Act, 1996 and the Regulations and Bye-laws &RPSDQLHV$FWRQFHUWDLQRFFDVLRQVZKHUHVXFK¿OLQJZDV IUDPHGWKHUHXQGHU required due to changes in shareholding positions of promoters/ promoter group entities. LY )RUHLJQ ([FKDQJH 0DQDJHPHQW $FW DQG WKH UXOHV DQG iv. During the period under review, the e-form MGT-14 which was UHJXODWLRQV PDGH WKHUHXQGHU WR WKH H[WHQW RI )RUHLJQ 'LUHFW UHTXLUHGWREH¿OHGIRUDSSURYDORIVWDQGDORQH¿QDQFLDOVWDWHPHQWV ,QYHVWPHQW2YHUVHDV'LUHFW,QYHVWPHQWDQG([WHUQDO&RPPHUFLDO KDVQRWEHHQ¿OHGE\WKH&RPSDQ\ %RUURZLQJV v. During the period under review, Mr. Radheyshyam Agarwal has v. The following Regulations and Guidelines prescribed under the WHQGHUHG KLV UHVLJQDWLRQ IURP WKH RI¿FH RI WKH 'LUHFWRU RI WKH 6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD$FW ³6(%,$FW´ &RPSDQ\ZLWKHIIHFWIURP-DQXDU\However, the Company D 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6XEVWDQWLDO KDVQRW\HW¿OHGWKHHIRUP',5ZLWKWKHRI¿FHRIWKH5HJLVWUDURI Companies within the prescribed time. $FTXLVLWLRQRI6KDUHVDQG7DNHRYHUV 5HJXODWLRQV vi. 7KH&RPSDQ\KDVGHOD\HGLQ¿OLQJRIVRPHRIWKHH)RUPVZLWKWKH E 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 3URKLELWLRQ RI Registrar of Companies during the Audit Period. ,QVLGHU7UDGLQJ 5HJXODWLRQV vii. Mr. Venugopal N. Dhoot was also designated, in addition to the F 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHRI&DSLWDO 0DQDJLQJ'LUHFWRURIWKH&RPSDQ\DVWKH&KLHI([HFXWLYH2I¿FHU DQG 'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV 1RW RI WKH &RPSDQ\ GXULQJ WKH ¿QDQFLDO \HDU HQGHG RQ DSSOLFDEOHWRWKH&RPSDQ\GXULQJWKH$XGLW3HULRG However, in my opinion an e-form DIR-12 for the appointment of &(2VKRXOGKDYHEHHQ¿OHGXQGHUWKHSURYLVLRQVRI6HFWLRQRI G 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD (PSOR\HH6WRFN WKH$FW7KHVDLGIRUPLVQRW\HW¿OHG Option Scheme and Employee Stock Purchase Scheme) *XLGHOLQHV DQG 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG viii. During the year under review the Company has transferred RI,QGLD 6KDUH%DVHG(PSOR\HH%HQH¿WV 5HJXODWLRQV XQFODLPHGGLYLGHQGRI5V0LOOLRQIRUWKH¿QDQFLDO\HDU w.e.f. October 28, 2014 (Not applicable to the Company during 09, to Investor Education and Protection Fund. The Company has WKH$XGLW3HULRG QRW¿OHG)RUP,(3)ZLWKWKH,(3)$XWKRULW\ L[ 7KH&RPSDQ\KDVQRWWLOOGDWH¿OHG6WDWHPHQWLQ,(3)ZLWKLQ H 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHDQG/LVWLQJ days from the date Annual General Meeting held on 22nd December, of Debt Securities) Regulations, 2008 (Not applicable to the 2017 IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016. &RPSDQ\GXULQJWKH$XGLW3HULRG [ The Company has not till date transferred the shares in respect I 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 5HJLVWUDUV of which dividend is unclaimed or unpaid for more than 7 years to an Issue and Share Transfer Agents) Regulations, 1993 and which were due for transfer to IEPF during the period from UHJDUGLQJWKH&RPSDQLHV$FWDQGGHDOLQJZLWKFOLHQW September 7, 2016 to October 31, 2017. J 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 'HOLVWLQJ RI Apart from the above observations, I would like to highlight the following: (TXLW\ 6KDUHV 5HJXODWLRQV 1RW DSSOLFDEOH WR WKH i. 7KH&RPSDQ\KDVDOUHDG\DSSRLQWHG&KLHI)LQDQFLDO2I¿FHU &)2 &RPSDQ\GXULQJWKH$XGLW3HULRG prior to commencement of the Act. Hence, the Company has K 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD %X\EDFN RI FODUL¿HGWKDWLWZDVQRWUHTXLUHGWR¿OHHIRUP',5IRUDSSRLQWPHQW Securities) Regulations, 1998 (Not applicable to the Company of CFO. However, in my opinion, e-form DIR-12 should have been ¿OHGUDWLI\LQJWKHDSSRLQWPHQWRIWKH&)2XQGHUWKHSURYLVLRQVRI GXULQJWKH$XGLW3HULRG Section 203 of the Act and the rules made thereunder. 14 ii. The Company is required to comply with the provisions of Section Annexure A 138 of the Act read with Rule 13 of Companies (Accounts) Rules, 2014 regarding appointment of Internal Auditor within six months To of the commencement of the Act. The Company has in place an The Members, in-house internal audit team led by in house internal auditor to carry out the audit of internal records maintained by the Company and the 9LGHRFRQ,QGXVWULHV/LPLWHG said constitution/appointment was prior to commencement of the 14 K.M. Stone, Aurangabad Paithan Road, $FW+HQFHWKH&RPSDQ\KDVFODUL¿HGWKDWLWZDVQRWUHTXLUHGWR¿OH e-Form MGT-14 for appointment of Internal Auditor. Village Chittegaon, Taluka Paithan, 8QGHU 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD $FW DQG YDULRXV Aurangabad - 431105 regulations stated thereunder: Maharashtra L $VSUHVFULEHGXQGHU5HJXODWLRQRIWKH6HFXULWLHVDQG([FKDQJH My secretarial audit report of even date is to be read along with this letter. %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV Regulations, 2015, the Company has delayed the submission of the i. Maintenance of secretarial and other records is the responsibility of quarterly shareholding pattern with the Stock Exchanges for certain WKHPDQDJHPHQWRIWKH&RPSDQ\0\UHVSRQVLELOLW\LVWRH[SUHVVDQ quarters. opinion on these records based on my audit. LL $VSUHVFULEHGXQGHU5HJXODWLRQRIWKH6HFXULWLHVDQG([FKDQJH %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV ii. I have followed the audit practices and process as were appropriate Regulations, 2015, the Company has delayed the submission of to obtain reasonable assurance about the correctness of the WKHXQDXGLWHG¿QDQFLDOUHVXOWVDORQJZLWKWKH/LPLWHG5HYLHZUHSRUW FRQWHQWV RI WKH VHFUHWDULDO DQG RWKHU UHFRUGV 7KH YHUL¿FDWLRQ with the Stock Exchanges for certain quarters. ZDV GRQH RQ WHVW EDVLV WR HQVXUH WKDW FRUUHFW IDFWV DUH UHÀHFWHG LLL $VSUHVFULEHGXQGHU5HJXODWLRQRIWKH6HFXULWLHVDQG([FKDQJH in secretarial records. I believe that the processes and practices, I %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV Regulations, 2015, the Company has delayed the submission of followed, provide a reasonable basis for my opinion. $QQXDO5HSRUWIRUWKH¿QDQFLDO\HDUHQGHGRQ0DUFKZLWKLQ LLL ,KDYHQRWYHUL¿HGWKHFRUUHFWQHVVDQGDSSURSULDWHQHVVRI¿QDQFLDO the prescribed time with the Stock Exchanges. records and Books of Accounts of the Company. LY $VSUHVFULEHGXQGHU5HJXODWLRQRIWKH6HFXULWLHVDQG([FKDQJH %RDUG RI ,QGLD /LVWLQJ 2EOLJDWLRQV DQG 'LVFORVXUH 5HTXLUHPHQWV LY :KHUHYHUUHTXLUHG,KDYHREWDLQHGWKH0DQDJHPHQWUHSUHVHQWDWLRQ Regulations, 2015, WKH &RPSDQ\ KDV GHOD\HG WKH ¿OLQJV IRU WKH about the compliance of laws, rules and regulations and happening ¿QDQFLDO\HDUHQGHGRQ0DUFKZLWKLQWKHSUHVFULEHGWLPH with the Stock Exchanges. of certain events during the Audit Period. I further report that: v. The compliance of the provisions of corporate and other i. The Board of Directors of the Company is duly constituted with applicable laws, rules, regulations, standards is the responsibility SURSHUEDODQFHRI([HFXWLYH'LUHFWRUV1RQ([HFXWLYH'LUHFWRUVDQG RIPDQDJHPHQW0\H[DPLQDWLRQZDVOLPLWHGWRWKHYHUL¿FDWLRQRI Independent Directors. The changes in the composition of the Board SURFHGXUHVRQWHVWEDVLVDQGH[SUHVVLQJDQRSLQLRQRQWKHVDPH of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. vi. The Secretarial Audit Report is neither an assurance as to the future LL $GHTXDWH QRWLFH LV JLYHQ WR DOO GLUHFWRUV WR VFKHGXOH WKH %RDUG YLDELOLW\ RI WKH FRPSDQ\ QRU RI WKH HI¿FDF\ RU HIIHFWLYHQHVV ZLWK Meetings, agenda and detailed notes on agenda were sent at which the management has conducted the affairs of the Company. OHDVWVHYHQGD\VLQDGYDQFHDQGDV\VWHPH[LVWVIRUVHHNLQJDQG REWDLQLQJIXUWKHULQIRUPDWLRQDQGFODUL¿FDWLRQVRQWKHDJHQGDLWHPV before the meeting and for meaningful participation at the meeting. CS Soumitra Mujumdar iii. All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the minutes of the meetings ACS 30938 of the Board of Directors or Committee of the Board, as the case CP 12363 may be. 'DWH -XQH I further report that as represented by the Company and relied upon Place: Mumbai E\ PH WKHUH DUH DGHTXDWH V\VWHPV DQG SURFHVVHV LQ WKH &RPSDQ\ commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. I further report that during the Audit Period, the following major events took place: L $ SHWLWLRQ ZDV ¿OHG RQ -DQXDU\ E\ 6WDWH %DQN RI ,QGLD XQGHU6HFWLRQRIWKH,QVROYHQF\ %DQNUXSWF\&RGH7KH VDLGSHWLWLRQLVSHQGLQJEHIRUHWKH+RQ¶EOH1DWLRQDO&RPSDQ\/DZ Tribunal, Mumbai Bench, Mumbai. LL 7KH &RPSDQ\ KDV LVVXHG SHU FHQW )RUHLJQ &XUUHQF\ &RQYHUWLEOH %RQGV %RQGV RI 86 GXULQJ WKH \HDU 2015, due on 31st December, 2020 (Maturity Date). The company KDVQHLWKHUSDLGDQ\DPRXQWDJDLQVWSXWRSWLRQH[HUFLVHGRQWK December 2016 nor interest thereafter. The Company has informed WKDWWKH3XW2SWLRQPHQWLRQHGLQWKHWHUPVRIWKH)&&%VZDVXQGHU GXUHVV DQG WKH VDPH ZDV ZURQJO\ H[HUFLVHG E\ WKH %RQGKROGHUV and, accordingly, everything is disputed. The Company has informed WKDWWKH\KDG¿OHGFODLPFKDOOHQJLQJWKHDFWLRQRIWKH%RQGKROGHUVLQ FRXUWRI/RQGRQDQGQRDPRXQWKDV\HWEHFRPHGXHDQGSD\DEOH CS Soumitra Mujumdar ACS 30938 CP 12363 'DWH -XQH Place: Mumbai This report to be read with my letter of even date which is annexed as Annexure and forms an integral part of this report. 15 Annual Report 2017-18 ANNEXURE - 2 FORM NO. MGT - 9 $VRQWKH¿QDQFLDO\HDUHQGHGRQMarch 31, 2018 EXTRACT OF ANNUAL RETURN [Pursuant to section 92(3) of Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014] I. REGISTRATION AND OTHER DETAILS: i. CIN : / 0+ 3/& ii. Registration Date : 04.09.1986 iii. Name of the Company : 9,'(2&21,1'8675,(6/,0,7(' iv. Category/ Sub-Category of the Company: v. Category : &RPSDQ\/LPLWHGE\6KDUHV vi. Sub-Category : Indian Non-Government Company YLL $GGUHVVRIWKH5HJLVWHUHGRI¿FHDQGFRQWDFWGHWDLOV : 14 K.M. Stone, Aurangabad – Paithan Road, Village: Chittegaon, Tal: Paithan, Dist.: Aurangabad 431 105, Maharashtra, India Tel No. +91-2431-251501/02 E-mail id [email protected] viii. Whether listed company : Sl.No. Name and Description of main products/services NIC Code of the Product/ % to total turnover of Service the Company 1 Manufacture and whole-sale and retail trade of Consumer 264,465 and 478 99.10 Electronics and Home Appliances items III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES: $VRQ¿QDQFLDO\HDUHQGHGRQ Sl. Name and address of the Company CIN/GLN Holding/ % of Applicable No. Subsidiary/ shares Section Associate held 1 Jumbo Techno Services Private Limited 8 '/37& Subsidiary 100 2(87)(ii) Address: 12th)ORRU9LGHRFRQ7RZHU%ORFN(-DQGHZDODQ([WHQVLRQ1HZ Delhi – 110 055 2 Middle East Appliances LLC CR No. 1/73156/4 Subsidiary 100 2(87)(ii) $GGUHVV 32%R[ 3RVWDO&RGH5XVD\O6XOWDQDWHRI2PDQ 3 Pipavav Energy Private Limited 80+37& Subsidiary 100 2(87)(ii) Address: 171-C, 17th)ORRU3ORW&:LQJ0LWWDO&RXUW-DPQDODO%DMDM Marg, Nariman Point, Mumbai City - 400021 4 Prosperous Energy Private Limited 8 0+37& Subsidiary 100 2(87)(ii) Address: 171-C, 17th)ORRU0LWWDO&RXUW&:LQJ1DULPDQ3RLQW0XPEDL 400021 5 Senior Consulting Private Limited 8 '/37& Subsidiary 100 2(87)(ii) Address: 12th)ORRU9LGHRFRQ7RZHU%ORFN(-DQGHZDODQ([WHQVLRQ1HZ Delhi – 110 055 6 Videocon Australia WA – 388-P Limited MC-233984 Subsidiary 100 2(87)(ii) $GGUHVV 32%R[ 8JODQG+RXVH*UDQG&D\PDQ.< Cayman Islands 7 Videocon Brazil Ventures B.V. 52391337 Subsidiary 100 2(87)(ii) Address: Haaksbergweg 71, 1101 BR Amsterdam 16 Sl. Name and address of the Company CIN/GLN Holding/ % of Applicable No. Subsidiary/ shares Section Associate held 8 Videocon Brazil Petroleo Ltda 22.396.282/0001-20 Subsidiary 100 2(87)(ii) Address: Avenida das Americas, 4200, rooms, 217B to 220B, Rio de -DQHLUR 9 Videocon Easypay Private Limited (Formerly: Datacom 8 3%37& Subsidiary 95.63 2(87)(ii) Telecommunications Private Limited) Address: C 157, Industrial Area, Phase-VII, Mohali, Rupnagar, Punjab - 160055 10 Videocon Electronics (Shenzhen) Limited 6:=<6):===L>@1R Subsidiary 100 2(87)(ii) $GGUHVV *0DLQ%XLOGLQJ5XRGH)LQDQFLDO&HQWHU)X]KRQJUG5RDG 0084 )XWLDQ'LVWULFW6KHQ]KHQ&LW\*XDQJGRQJ3URYLQFH 11 Videocon Energy Limited 80+3/& Subsidiary 100 2(87)(ii) Address: Auto Cars Compound, Adalat Road, Aurangabad 431 005 12 Videocon Energy Brazil Limited 1456147 Subsidiary 100 2(87)(ii) $GGUHVV .LQJVWRQ&KDPEHUV32%R[5RDG7RZQ7RUWROD%ULWLVK Virgin Islands 13 Videocon Global Limited 604927 Subsidiary 100 2(87)(ii) $GGUHVV ,QWHUQDWLRQDO7UXVW%XLOGLQJ32%R[ 5RDG7RZQ7RUWROD British Virgin Islands 14 Videocon Hydrocarbon Holdings Limited MC-233951 Subsidiary 100 2(87)(ii) Address: 32%R[ 8JODQG+RXVH*UDQG&D\PDQ.<&D\PDQ Islands 15 Videocon Hydrocarbon Ventures B.V. 52391531 Subsidiary 100 2(87)(ii) Address: Haaksbergweg 71, 1101 BR Amsterdam 16 Videocon Indonesia Nunukan Inc. MC-210985 Subsidiary 100 2(87)(ii) Address: 32%R[ 8JODQG+RXVH*UDQG&D\PDQ.<&D\PDQ Islands 17 Videocon International Cooperatie U.A. 50851292 Subsidiary 100 2(87)(ii) Address: Haaksbergweg 71, 1101 BR Amsterdam 18 Electroworld Digital Solutions Limited 80+3/& Subsidiary 100 2(87)(ii) (Formerly: Videocon International Electronics Limited) Address: 171-C, 17th)ORRU0LWWDO&RXUW&:LQJ1DULPDQ3RLQW0XPEDL± 400021 19 Videocon JPDA 06-103 Limited MC-156838 Subsidiary 100 2(87)(ii) $GGUHVV 32%R[ *78JODQG+RXVH6RXWK&KXUFK6WUHHW*HRUJH Town, Grand Cayman 20 Videocon Mauritius Energy Limited & &*%/ Subsidiary 100 2(87)(ii) Address: 4th)ORRU(EHQH6NLHV5XHGH/¶LQVWLWXW(EHQH5HSXEOLFRI Mauritius 21 VOVL Limited (Formerly Videocon Oil Ventures Limited) 80+3/& Subsidiary 100 2(87)(ii) Address: Auto Cars Compound, Adalat Road, Aurangabad 431 005 22 Videocon Telecommunications Limited 8 0+3/& Subsidiary 95.63 2(87)(ii) Address: R H No. 2, Pratapnagar Shahnoorwadi Road, Aurangabad – 431 001 23 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUHV3ULYDWH/LPLWHG 8:%37& -RLQW9HQWXUH 50 2(6) $GGUHVV 6HFWRU9%ORFN%36DOW/DNH&LW\.RONDWWD :HVW%HQJDO 24 IBV Brazil Petroleo Limitada 07.766.332/0001-20 -RLQW9HQWXUH 50 2(6) Address: AV. Das Americas, No. 4200 building 9, rooms 217B to 220B (part), (G3DULV&HQWUR(PSUHVDULDO%DUUD6KRSSLQJ6WDWHRI5LRGH-DQHLUR=LS Code 22640-102 25 Radium Appliances Private Limited 8 0+37& Associate 26 2(6) Address: 171-C, 17th)ORRU0LWWDO Court C Wing, Nariman Point, Mumbai – 400021 26 VISPL LLP $$/ Associate 50 2(6) $GGUHVV )3KDVH% Industrial, Area Mohali PB 16005 17 Annual Report 2017-18 IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) i. Category-wise Share Holding: No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of Shareholders % of Total % of Total during the Demat Physical Total Demat Physical Total Shares Shares year A. Promoters / Promoter Group person acting in concert 1. Indian D ,QGLYLGXDO+8) 564,233 - 564,233 0.17 564,233 - 564,233 0.17 - b) Central Govt. ------c) State Govt(s) ------d) Bodies Corp. 220,312,478 - 220,312,478 65.87 147,866,500 - 147,866,500 44.21 -21.66 H %DQNV), ------f) Any Other… ------Sub-Total (A)(1):- 220,876,711 - 220,876,711 66.04 148,430,733 - 148,430,733 44.38 -21.66 2. Foreign a) NRIs-Individuals ------b) Other-Individuals ------c) Bodies Corp. ------G %DQNV), ------e) Any Other… ------Sub-Total (A)(2):------Total Shareholding of Promoter(A)= (A) 220,876,711 - 220,876,711 66.04 148,430,733 - 148,430,733 44.38 -21.66 (1)+(A)(2) B. Public Shareholding 1. Institutions a) 0XWXDO)XQGV 48,547 1,323 49,870 0.01 2,509 1,323 3,832 0.00 -0.01 b) %DQNV), 8,320,577 13,016 8,333,593 2.50 10,212,850 13,016 10,225,866 3.06 +5.59 c) Central Govt ------d) State Govt(s) ------e) 9HQWXUH&DSLWDO)XQGV ------f) Insurance Companies 18,176,140 - 18,176,140 5.43 18,176,140 - 18,176,140 5.43 - g) ),,V 12,034,322 11,371 12,045,693 3.60 5,792,141 11,371 5,803,512 1.74 -1.86 h) )RUHLJQ9HQWXUH&DSLWDO)XQGV ------i) Others(Specify) ------Sub-Total(B)(1):- 38,579,586 25,710 38,605,296 11.55 34,183,640 25,710 34,209,350 10.23 0 2. Non-Institutions a) Bodies Corp. i) Indian 23,450,380 400,596 23,850,976 7.13 29,252,355 400,590 29,652,945 8.86 +1.73 ii) Overseas - - - - b) Individuals i) Individual shareholders holding 7,991,915 1,260,620 9,252,535 2.76 55,767,838 1,253,166 57,021,004 17.04 +14.11 nominal share capital upto `2 lakh ii) Individual shareholders holding 2,343,359 - 2,343,359 0.70 21,363,633 - 21,363,633 6.38 +5.68 QRPLQDOVKDUHFDSLWDOLQH[FHVVRI `2 lakh c) Others – Overseas Depository 38,835,179 - 38,835,179 11.61 38,834,979 - 38,834,979 11.61 - – shares held by Custodian for GDRs* 1) NRI 145,308 3,484 148,792 0.04 2,089,914 3,484 2,093,398 0.62 +0.58 2) Trust/Co-operative Society/ 4,013 90 4103 0.00 4,012 90 4,102 0.00 - )RXQGDWLRQ 3) +8) 541,069 855 541,924 0.16 2,847,876 855 2,848,731 0.86 +0.86 Sub-Total (B)(2):- 73,311,223 1,665,645 74,976,868 22.40 150,160,607 1,658,185 151,818,792 45.37 +22.84 Total Public Shareholding (B)=(B) 111,890,809 1,691,355 113,582,164 33.96 184,344,247 1,683,895 186,028,142 55.62 +22.84 (1)+(B)(2) C. Shares held by Custodian for GDRs ------& ADRs Grand Total (A+B+C) 332,767,520 1,691,355 334,458,875 100.00 332,774,980 1,683,895 334,458,875 100.00 - 18 ii. Shareholding of Promoters/Promoter Group and persons acting in concert Shareholding at the beginning of the Shareholding at the end of the year year % of Shares % of Shares Sl. % of total % of total % Change in Shareholder’s Name Pledged/ Pledged/ No. Shares Shares shareholding No. of encumbered No. of encumbered of the of the during the Shares to total Shares to total Company Company year shares shares 1 Rajkumar Nandlal Dhoot 134,592 0.04 0.04 134,592 0.04 - - 2 Pradipkumar Nandlal Dhoot 156,808 0.05 0.00 156,808 0.05 - - 3 Venugopal Nandlal Dhoot 89,575 0.03 0.03 89,575 0.03 - - 4 Kesharbai Nandlal Dhoot 8,210 0.00 0.00 8,210 0.00 - - 5 Sushma R Dhoot 14,942 0.00 0.00 14,942 0.00 - - 6 Nalinibai Pradipkumar Dhoot 14,934 0.00 0.00 14,934 0.00 - - 7 Ramabai Venugopal Dhoot 14,097 0.00 0.00 14,097 0.00 - - 8 Anirudha Venugopal Dhoot 8,098 0.00 0.00 8,098 0.00 - - 9 Saurabh Pradipkumar Dhoot 18,088 0.01 0.00 18,088 0.01 - - 10 Sushmabai Rajkumar Dhoot 50,624 0.02 0.00 50,624 0.02 - - 11 Akshay Rajkumar Dhoot 54,265 0.02 0.00 54,265 0.02 - - 12 Dome-Bell Electronics India 16,408,970 4.91 4.89 15,131,366 4.52 4.52 (0.39) 3YW/WG 13 :DOXM&RPSRQHQWV3YW/WG# 34,857 0.01 - 52,884 0.02 - - 14 &HQWXU\$SSOLDQFHV/WG 1,093,110 0.33 0.33 1,093,110 0.33 0.32 - 15 Shree Dhoot Trading And 26,179,336 7.83 7.66 13,702,000 4.10 4.10 (3.73) $JHQFLHV/WG$ 16 (OHFWURSDUWV ,QGLD 3YW/WG$ 11,110 0.00 0.00 4,727,346 1.41 1.32 +1.41 17 )RUFH$SSOLDQFHV3YW/WG 1,007,222 0.30 0.30 222 0.00 0.00 (0.30) 18 .$,//WG 4,836,110 1.45 1.45 2,050,110 0.61 0.61 (0.84) 19 &OXVWHU7UDGH ,QYHVWPHQWV 45,100 0.01 - 45,100 0.01 - - 3YW/WG 20 .RDOD+ROGLQJV3YW/WG 39,966 0.01 - 39,966 0.01 - - 21 9DOXH,QGXVWULHV/LPLWHG 35,411 0.01 - 35,411 0.01 - - 22 7KH,QYH[3YW/WG 1,832 0.00 - 1,832 0.00 - - 23 *UHHQ¿HOG$SSOLDQFHV3ULYDWH 14,462,140 4.32 4.32 11,687,140 3.49 3.40 (0.83) /LPLWHG 24 7HN&DUH,QGLD3YW/WG 8,260,877 2.47 2.47 3,186,738 0.95 0.95 (1.52) 25 Synergy Appliances Private 15,410,575 4.61 4.60 15,392,548 4.60 4.60 - /LPLWHG 26 Platinum Appliances Private 15,604,666 4.67 4.67 7,875,288 2.35 2.35 (2.32) /LPLWHG 27 Solitaire Appliances Private 11,458,330 3.43 3.42 4,487,496 1.34 1.33 (2.09) /LPLWHG 28 6\QOHQH)DEULFV/WG 28,942 0.01 - 28,942 0.01 - - 29 7DQJHQW(OHFWURQLFV3YW/WG 12,222,220 3.65 3.64 12,222,220 3.65 3.64 - 30 7UHQG(OHFWURQLFV/LPLWHG 2,906,478 0.87 0.86 2,906,478 0.87 0.86 - 31 Holly- Hock Investments Pvt. 77,830 0.02 0.02 830 0.00 0.00 (0.02) /WG 32 Videocon Realty And 63,945,518 19.12 19.11 50,019,095 14.96 14.88 (4.15) ,QIUDVWUXFWXUHV/WG 33 (YDQV)UDVHUDQG&R ,QGLD 4,608,911 1.38 1.34 911 0.00 0.00 (1.38) limited 34 1LSSRQ,QYHVWPHQW )LQDQFH 20,554,616 6.15 6.10 3,102,116 0.93 0.93 (5.22) &R3YW/WG 35 &(,QGLD/LPLWHG 705,640 0.21 0.19 4,640 0.00 0.00 (0.21) 36 /HR&RPPXQLFDWLRQV3YW/WG 986 0.00 - 986 0.00 - - 37 5RVKL$SSOLDQFHV3YW/WG 371,725 0.11 0.09 71,725 0.02 - 0.09 38 3UR¿FLHQW(QJLQHHULQJ3ULYDWH ------/LPLWHG* Total 220,876,711 66.04 65.55 148,430,733 44.38 43.81 (21.66) # In terms of the Scheme of Amalgamation as approved by the Hon’ble National Company Law Tribunal, Mumbai Bench at Mumbai (“NCLT”) vide its Order dated July 5, 2017, M/s. Synergy Appliances Private Limited (the “Transferor Company”) Promoter Group Entity of Videocon Industries Limited (VIL), got amalgamated with the other Promoter Group entity M/s. Waluj Components Private Limited (the “Transferee Company”). The 19 Annual Report 2017-18 Scheme became effective on August 10, 2017. M/s. Waluj Components Private Limited has initiated the process to transfer the shares held by M/s. Synergy Appliances Private Limited in its own name. Upto March 31, 2018, 18,027 unencumbered equity shares held by M/s. Synergy Appliances Private Limited have been transferred to M/s. Waluj Components Private Limited. As on March 31, 2018, M/s. Waluj Components Private Limited holds 52,884 shares in its own name. As on March 31, 2018, 1,53,92,548 Equity Shares representing 4.60% of the paid-up Share Capital of VIL have been held in the name of M/s. Synergy Appliances Private Limited, which have been pledged by M/s. Synergy Appliances Private Limited, in IDYRXURIYDULRXV3OHGJHHVDV6HFXULW\'XHWRWKLVWHFKQLFDOGLI¿FXOW\WKHVDLG (TXLW\6KDUHVUHSUHVHQWLQJRIWKHSDLGXS6KDUH Capital of the Company shall be held in the name of M/s. Synergy Appliances Private Limited till the date of release of pledge by the Pledgees. As per the information received from M/s. Waluj Components Private Limited, post such transfer, it will hold 1,54,45,432 Equity Shares constituting 4.62% in VIL. $ In terms of the Scheme of Amalgamation as approved by the Hon’ble National Company Law Tribunal, Mumbai Bench at Mumbai vide its order dated July 19, 2017, M/s. Platinum Appliances Private Limited (the “Transferor Company”), [the Promoter Group entity of Videocon Industries Limited (“VIL”), holding 78,75,288 Equity Shares representing 2.35% of paid-up share capital of VIL as on date] and M/s. Shree Dhoot Trading And Agencies Limited (the “Transferor Company”), [(the other Promoter Group entity of VIL, holding 1,37,02,000 Equity Shares representing 4.10% of paid-up share capital of VIL as on date]) got amalgamated with M/s. Electroparts (India) Private Limited (the “Transferee Company”), (the other Promoter Group entity of VIL). The Scheme became effective on August 24, 2017. M/s. Electroparts (India) Private Limited has initiated the process to transfer the shares held by M/s. Platinum Appliances Private Limited and M/s. Shree Dhoot Trading And Agencies Limited, in its own name. Upto March 31, 2018, 400 unencumbered Equity Shares held by M/s. Platinum Appliances Private Limited have already been transferred to M/s. Electroparts (India) Private Limited and the balance 78,75,288 Equity Shares representing 2.35% of the paid-up Share Capital of VIL have been held in the name of M/s. Platinum Appliances Private Limited, which have been pledged by M/s. Platinum Appliances Private Limited, in favour of various Pledgees as Security. Further, March 31, 2018, 3,01,836 unencumbered Equity Shares held by M/s. Shree Dhoot Trading And Agencies Limited, have been transferred to M/s. Electroparts (India) Private Limited. Further the name of Demat Account of Shree Dhoot Trading and Agencies Limited (in which Demat Account 44,25,000 Equity Shares were held and pledged with Yes Bank) has been changed to Electroparts (India) Private Limited. As such as on March 31, 2018, 47,26,836 Equity Shares held by Shree Dhoot Trading And Agencies Limited shall stand transferred to Electroparts (India) Private Limited and balance 1,37,02,000 Equity Shares shall be continued to be held in the name of erstwhile M/s. Shree Dhoot Trading And Agencies Limited as the same are pledged. M/s. Electroparts (India) Private Limited further informed that post such transfer it shall hold total 2,63,04,634 Equity Shares of VIL, representing 7.86% share capital of VIL. * In terms of the Scheme of Amalgamation as approved by the Hon’ble National Company Law Tribunal, Mumbai Bench at Mumbai (“NCLT”) vide its 2UGHUGDWHG1RYHPEHU0V*UHHQ¿HOG$SSOLDQFHV3ULYDWH/LPLWHG WKH³7UDQVIHURU&RPSDQ\´ 3URPRWHU*URXS(QWLW\RI0V9LGHRFRQ ,QGXVWULHV/LPLWHG 9,/ JRWDPDOJDPDWHGZLWK0V3UR¿FLHQW(QJLQHHULQJ3ULYDWH/LPLWHG WKH³7UDQVIHUHH&RPSDQ\´ 7KH6FKHPHEHFDPH HIIHFWLYH RQ )HEUXDU\ &RQVHTXHQW WR$PDOJDPDWLRQ RI 0V *UHHQ¿HOG$SSOLDQFHV 3ULYDWH /LPLWHG ZLWK 0V 3UR¿FLHQW (QJLQHHULQJ 3ULYDWH/LPLWHG0V3UR¿FLHQW(QJLQHHULQJ3ULYDWH/LPLWHGEHFDPHWKH3URPRWHU*URXSHQWLW\RI9,/$VRQGDWHRIWKLVUHSRUWLQJ0V3UR¿FLHQW (QJLQHHULQJ3ULYDWH/LPLWHGKROGV1LOVKDUHVRI9,/LQLWVRZQQDPH0V3UR¿FLHQW(QJLQHHULQJ3ULYDWH/LPLWHGKDVLQLWLDWHGWKHSURFHVVWRWUDQVIHU WKHVKDUHVKHOGE\0V*UHHQ¿HOG$SSOLDQFHV3ULYDWH/LPLWHGLQLWVRZQQDPH$VRQ0DUFK(TXLW\6KDUHVUHSUHVHQWLQJ RIWKHSDLGXS6KDUH&DSLWDORI9,/KDYHEHHQSOHGJHGE\0V*UHHQ¿HOG$SSOLDQFHV3ULYDWH/LPLWHGLQIDYRXURIYDULRXV3OHGJHHVDV 6HFXULW\'XHWRWKLVWHFKQLFDOGLI¿FXOW\WKHVDLG(TXLW\6KDUHVUHSUHVHQWLQJRIWKHSDLGXS6KDUH&DSLWDORI9,/VKDOOEHKHOGLQ WKHQDPHRI0V*UHHQ¿HOG$SSOLDQFHV3ULYDWH/LPLWHGWLOOWKHGDWHRIUHOHDVHRISOHGJHE\WKH3OHGJHHV$VSHUWKHLQIRUPDWLRQUHFHLYHGIURP0V 3UR¿FLHQW(QJLQHHULQJ3ULYDWH/LPLWHGSRVWVXFKWUDQVIHULWZLOOKROG(TXLW\6KDUHVFRQVWLWXWLQJ LQ9,/ iii. Change in Promoter’s/promoter’s Group/Persons acting in concert’s Shareholding Sr. Name of the Shareholder Shareholding at the Date-wise Increase/ Reason Cumulative No beginning and at the end Decrease in Promoters shareholding during of the year Shareholding during the the year year No. of % of total Date Increase/ No. of % of total shares Shares Decrease shares Shares of the of the Company Company 1 &(,QGLD/LPLWHG 705,640 0.21 16.06.2017 -601,000 Invoked 104,640 0.03 104,640 0.03 21.06.2017 -39,045 Invoked 65,595 0.02 65,595 0.02 22.06.2017 -10,955 Invoked 54,640 0.02 54,640 0.02 23.06.2017 -50,000 Invoked 4,640 0.00 2 5RVKL$SSOLDQFHV3ULYDWH/LPLWHG 371,725 0.11 24.07.2017 -100,000 Invoked 271,725 0.08 271,725 0.08 .07.2017 -200,000 Invoked 71,725 0.02 3 (YDQV )UDVHU DQG &R ,QGLD 4,608,911 1.38 06.07.2017 -650,000 Invoked 3,958,911 1.18 /LPLWHG 3,958,911 1.18 07.07.2017 -120,000 Invoked 3,838,911 1.15 3,838,911 1.15 12.07.2017 -700,000 Invoked 3,138,911 0.94 3,138,911 0.94 .07.2017 -450,000 Invoked 2,688,911 0.80 2,688,911 0.80 .07.2017 -600,000 Invoked 2,088,911 0.62 2,088,911 0.62 .07.2017 -550,000 Invoked 1,538,911 0.46 1,538,911 0.46 15.03.2018 -665,000 Sale 873,911 0.26 873,911 0.26 16.03.2018 -510,000 Sale 363,911 0.11 363,911 0.11 20.03.2018 -200,000 Sale 163,911 0.05 163,911 0.05 21.03.2018 -163,000 Sale 911 0.00 4 )RUFH$SSOLDQFHV3YW/WG 1,007,222 0.30 27.06.2017 -7,000 Invoked 1,000,222 0.30 1000222 0.30 06.03.2018 -1,000,000 Invoked 222 0.00 5 .$,//LPLWHG 4,836,110 1.45 10.07.2017 -36,000 Invoked 4,800,110 1.44 4800110 1.44 12.02.2018 -626,539 Invoked 4,173,571 1.25 4,173,571 1.25 14.02.2018 -960,000 Invoked 3,213,571 0.96 3,213,571 0.96 .03.2018 -1,163,461 Invoked 205,110 0.06 20 Sr. Name of the Shareholder Shareholding at the Date-wise Increase/ Reason Cumulative No beginning and at the end Decrease in Promoters shareholding during of the year Shareholding during the the year year No. of % of total Date Increase/ No. of % of total shares Shares Decrease shares Shares of the of the Company Company 6 7HN&DUH,QGLD3YW/WG 8,260,877 2.47 22.06.2017 -69,901 Invoked 8,190,976 2.45 8,190,976 2.45 23.06.2017 -300,000 Invoked 7,890,976 2.36 7,890,976 2.36 27.06.2017 -60,000 Invoked 7,830,976 2.34 7,830,976 2.34 29.06.2017 -52,500 Invoked 7,778,476 2.33 7,778,476 2.33 29.06.2017 -350,000 Invoked 7,428,476 2.22 7,428,476 2.22 10.07.2017 -257,000 Invoked 7,171,476 2.14 7,171,476 2.14 24.07.2017 -214,099 Invoked 6,957,377 2.08 6,957,377 2.08 28.09.2017 -1,704,983 Invoked 5,252,394 1.57 5,252,394 1.57 06.11.2017 -569,415 Invoked 4,682,979 1.40 4,682,979 1.40 06.03.2018 -1,496,241 Invoked 3186738 0.95 7 1LSSRQ ,QYHVWPHQW )LQDQFH &R 20,554,616 6.15 19.06.2017 -81,576 Invoked 20,473,040 6.12 3YW/WG 20,473,040 6.12 27.06.2017 -2,668,424 Invoked 17,804,616 5.32 17,804,616 5.32 27.06.2017 -838,500 Invoked 16,966,116 5.07 16,966,116 5.07 29.06.2017 -1,065,000 Invoked 15,901,116 4.75 15,901,116 4.75 29.06.2017 -135,000 Sale 15,766,116 4.71 15,766,116 4.71 07.07.2017 -470,000 Invoked 15,296,116 4.57 15,296,116 4.57 11.08.2017 -104,823 Invoked 15,191,293 4.54 15,191,293 4.54 21.08.2017 -172,356 Invoked 15,018,937 4.49 15,018,937 4.49 22.08.2017 -353,738 Invoked 14,665,199 4.38 14,665,199 4.38 28.08.2017 -455,343 Invoked 14,209,856 4.25 14,209,856 4.25 29.08.2017 -238,740 Invoked 13,971,116 4.18 13,971,116 4.18 06.09.2017 -350,000 Invoked 13,621,116 4.07 13,621,116 4.07 07.09.2017 -3,150,000 Invoked 10,471,116 3.13 10,471,116 3.13 08.12.2017 -621,000 Invoked 9,850,116 2.95 9,850,116 2.95 19.12.2017 -175,000 Invoked 9,675,116 2.89 9,675,116 2.89 21.12.2017 -350,000 Invoked 9,325,116 2.79 9,325,116 2.79 01.01.2018 -500,000 Invoked 8,825,116 2.64 8,825,116 2.64 02.01.2018 -500,000 Invoked 8,325,116 2.49 8,325,116 2.49 05.01.2018 -500,000 Invoked 7,825,116 2.34 7,825,116 2.34 08.01.2018 -100,000 Invoked 7,725,116 2.31 7,725,116 2.31 31.01.2018 -287,818 Invoked 7,437,298 2.22 7,437,298 2.22 01.02.2018 -212,182 Invoked 7,225,116 2.16 7,225,116 2.16 06.02.2018 -110,000 Invoked 7,115,116 2.13 7,115,116 2.13 07.02.2018 -150,000 Invoked 6,965,116 2.08 6,965,116 2.08 08.02.2018 -50,000 Invoked 6,915,116 2.07 6,915,116 2.07 09.02.2018 -200,000 Invoked 6,715,116 2.01 6715116 2.01 14.02.2018 -200,000 Invoked 6,515,116 1.95 6,515,116 1.95 15.03.2018 665,000 Purchase 7,180,116 2.15 7,180,116 2.15 15.03.2018 -500,000 Invoked 6,680,116 2.00 6,680,116 2.00 16.03.2018 510,000 Purchase 7,190,116 2.15 7,190,116 2.15 16.03.2018 -502 Invoked 7,189,614 2.15 7,189,614 2.15 20.03.2018 200,000 Purchase 7,389,614 2.21 7,389,614 2.21 21.03.2018 -760,944 Invoked 6,628,670 1.98 6,628,670 1.98 22.03.2018 163,000 Purchase 6,791,670 2.03 6,791,670 2.03 22.03.2018 -1,536,000 Sale 5,255,670 1.57 5,255,670 1.57 22.03.2018 -903,554 Invoked 4,352,116 1.30 4,352,116 1.30 .03.2018 1,250,000 Invoked 3,102,116 0.93 21 Annual Report 2017-18 Sr. Name of the Shareholder Shareholding at the Date-wise Increase/ Reason Cumulative No beginning and at the end Decrease in Promoters shareholding during of the year Shareholding during the the year year No. of % of total Date Increase/ No. of % of total shares Shares Decrease shares Shares of the of the Company Company 8 Shree Dhoot Trading And Agencies 26,179,336 7.83 23.05.2017 -100,000 Sale 26,079,336 7.80 /WG 26,079,336 7.80 14.06.2017 -11,197 Sale 26,068,139 7.79 26,068,139 7.79 16.06.2017 -1,010,000 Invoked 25,058,139 7.49 25,058,139 7.49 16.06.2017 -100,000 Invoked 24,958,139 7.46 24,958,139 7.46 19.06.2017 -275,000 Invoked 24,683,139 7.38 24,683,139 7.38 23.06.2017 -37,520 Invoked 24,645,619 7.37 24,645,619 7.37 27.06.2017 -838,500 Invoked 23,807,119 7.12 23,807,119 7.12 27.06.2017 -887,598 Invoked 22,919,521 6.85 22,919,521 6.85 27.06.2017 -100,000 Invoked 22,819,521 6.82 22,819,521 6.82 28.06.2017 -1,000,000 Invoked 21,819,521 6.52 21,819,521 6.52 29.06.2017 -100,000 Invoked 21,719,521 6.49 21,719,521 6.49 10.07.2017 -800,000 Invoked 20,919,521 6.25 20,919,521 6.25 .07.2017 -350,000 Invoked 20,569,521 6.15 20,569,521 6.15 .07.2017 -115,000 Invoked 20,454,521 6.12 20,454,521 6.12 .07.2017 -150,000 Invoked 20,304,521 6.07 20,304,521 6.07 .07.2017 -150,000 Invoked 20,154,521 6.03 20,154,521 6.03 .07.2017 -1,125,000 Invoked 19,029,521 5.69 19,029,521 5.69 .07.2017 -134,000 Invoked 18,895,521 5.65 18,895,521 5.65 .07.2017 -145,000 Invoked 18,750,521 5.61 18,750,521 5.61 .07.2017 -96,000 Invoked 18,654,521 5.58 18,654,521 5.58 .07.2017 -35,000 Invoked 18,619,521 5.57 18,619,521 5.57 .07.2017 -90,283 Invoked 18,529,238 5.54 18,529,238 5.54 28.09.2017 -43,000 Invoked 18,486,238 5.53 18,486,238 5.53 30.10.2017 -57,402 Invoked 18,428,836 5.51 18,428,836 5.51 24.08.2017 -301,836 Merger 18,127,000 5.42 18,127,000 5.42 24.08.2017 -4,425,000 Merger 13,702,000 4.10 9 Platinum Appliances Private 15,604,666 4.67 19.06.2017 -773,000 Invoked 14,831,666 4.43 /LPLWHG 14,831,666 4.43 30.10.2017 -28,000 Invoked 14,803,666 4.43 14,803,666 4.43 07.11.2017 -1,754,042 Invoked 13,049,624 3.90 13,049,624 3.90 08.11.2017 -249,176 Invoked 12,800,448 3.83 12,800,448 3.83 09.11.2017 -118,981 Invoked 12,681,467 3.79 12,681,467 3.79 10.11.2017 -1,280,400 Invoked 11,401,067 3.41 11,401,067 3.41 13.11.2017 -188,000 Invoked 11,213,067 3.35 11,213,067 3.35 16.11.2017 -349,198 Invoked 10,863,869 3.25 10,863,869 3.25 17.11.2017 -407,672 Invoked 10,456,197 3.13 10,456,197 3.13 20.11.2017 -464,481 Invoked 9,991,716 2.99 9,991,716 2.99 22.11.2017 -483,028 Invoked 9,508,688 2.84 9,508,688 2.84 24.11.2017 -1,633,000 Invoked 7,875,688 2.35 7,875,688 2.35 24.08.2017 -400 Merger 7,875,288 2.35 10 6\QHUJ\$SSOLDQFHV3ULYDWH/LPLWHG 15,410,575 4.61 10.08.2017 -18,027 Merger 15,392,548 4.60 11 *UHHQ¿HOG $SSOLDQFHV 3ULYDWH 14,462,140 4.32 23.02.2018 -2,480,000 Sale 11982140 3.58 /LPLWHG to 27.02.2018 11,982,140 3.58 01.03.2018 -147,500 Invoked 11,834,640 3.54 11,834,640 3.54 01.03.2018 -147,500 Invoked 11,687,140 3.49 12 Dome-bell Electronics India Private 16,408,970 4.91 19.06.2017 -227,000 Invoked 16,181,970 4.84 /LPLWHG 16,181,970 4.84 30.10.2017 -12,598 Invoked 16,169,372 4.83 16,169,372 4.83 22.01.2018 -316,420 Invoked 15,852,952 4.74 15,852,952 4.74 23.01.2018 -170,982 Invoked 15,681,970 4.69 15,681,970 4.69 01.03.2018 -213,604 Sale 15,468,366 4.62 15,468,366 4.62 06.03.2018 -337,000 Invoked 15,131,366 4.52 22 Sr. Name of the Shareholder Shareholding at the Date-wise Increase/ Reason Cumulative No beginning and at the end Decrease in Promoters shareholding during of the year Shareholding during the the year year No. of % of total Date Increase/ No. of % of total shares Shares Decrease shares Shares of the of the Company Company 13 Electroparts (India) Private 11,110 0.00 27.06.2017 -11,000 Invoked 110 0.00 /LPLWHG 110 0.00 24.08.2017 400 Merger 510 0.00 510 0.00 24.08.2017 4,726,836 Merger 4,727,436 1.41 14 9LGHRFRQ 5HDOW\ ,QIUDVWUXFWXUHV 63,945,518 19.12 01.06.2017 -48,414 Invoked 63,897,104 19.10 /LPLWHG 14.06.2017 63,897,104 19.10 19.06.2017 -25,000 Invoked 63,872,104 19.10 63,872,104 19.10 20.06.2017 -350 Invoked 63,871,754 19.10 63,871,754 19.10 21.06.2017 -139,736 Invoked 63,732,018 19.06 63,732,018 19.06 29.06.2017 -312,500 Invoked 63,419,518 18.96 63,419,518 18.96 07.07.2017 -350,000 Invoked 63,069,518 18.86 63,069,518 18.86 10.07.2017 -45,000 Invoked 63,024,518 18.84 63,024,518 18.84 .07.2017 -1,065,000 Invoked 61,959,518 18.53 61,959,518 18.53 08.08.2017 -290,113 Invoked 61,669,405 18.44 61,669,405 18.44 09.08.2017 -258,096 Invoked 61,411,309 18.36 61,411,309 18.36 10.08.2017 -246,662 Invoked 61,164,647 18.29 61,164,647 18.29 16.08.2017 -165,000 Invoked 60,999,647 18.24 60,999,647 18.24 16.08.2017 -1,113,546 Invoked 59,886,101 17.91 59,886,101 17.91 21.08.2017 -135,000 Invoked 59,751,101 17.87 59,751,101 17.87 31.08.2017 -9,000 Sale 59,742,101 17.86 59,742,101 17.86 07.09.2017 -500,000 Invoked 59,242,101 17.71 59,242,101 17.71 05.10.2017 -200,000 Invoked 59,042,101 17.65 59,042,101 17.65 09.10.2017 -604,967 Invoked 58,437,134 17.47 58,437,134 17.47 09.10.2017 -20,033 Invoked 58,417,101 17.47 58,417,101 17.47 09.10.2017 -700,000 Invoked 57,717,101 17.26 57,717,101 17.26 09.10.2017 -200,000 Invoked 57,517,101 17.20 57,517,101 17.20 12.10.2017 -28,000 Invoked 57,489,101 17.19 57,489,101 17.19 13.10.2017 -300,000 Invoked 57,189,101 17.10 57,189,101 17.10 27.10.2017 -174,000 Invoked 57,015,101 17.05 57,015,101 17.05 27.10.2017 -317,500 Invoked 56,697,601 16.95 56,697,601 16.95 22.01.2018 -2,006,140 Invoked 54,691,461 16.35 54,691,461 16.35 23.01.2018 -1,314,674 Invoked 53,376,787 15.96 53,376,787 15.96 24.01.2018 -679,186 Invoked 52,697,601 15.76 52,697,601 15.76 25.01.2018 -327,800 Invoked 52,369,801 15.66 52,369,801 15.66 29.01.2018 -255,147 Invoked 52,114,654 15.58 52,114,654 15.58 30.01.2018 -6,020 Invoked 52,108,634 15.58 52,108,634 15.58 31.01.2018 -1,100,000 Invoked 51,008,634 15.25 51,008,634 15.25 01.02.2018 -125,372 Invoked 50,883,262 15.21 50,883,262 15.21 12.02.2018 -413,461 Invoked 50,469,801 15.09 50,469,801 15.09 23.02.2018 -450,606 Sale 50,019,195 14.96 to 28.02.2018 50,019,195 14.96 .03.2018 -100 Invoked 50,019,095 14.96 15 6ROLWDLUH$SSOLDQFHV3ULYDWH/LPLWHG 11,458,330 3.43 24.11.2017 -2,689,876 Invoked 8,768,454 2.62 8,768,454 2.62 19.12.2017 -377,879 Invoked 8,390,575 2.51 8,390,575 2.51 20.12.2017 -420,000 Invoked 7,970,575 2.38 7,970,575 2.38 23.02.2018 -380,654 Invoked 7,589,921 2.27 7,589,921 2.27 23.02.2018 -544,000 Invoked 7,045,921 2.11 7,045,921 2.11 28.02.2018 -2,523,195 Invoked 4,522,726 1.35 4,522,726 1.35 05.03.2018 -5,230 Invoked 4,517,496 1.35 4,517,496 1.35 06.03.2018 -30,000 Invoked 4,487,496 1.34 16 +ROO\+RFN,QYHVWPHQWV3YW/WG 77,830 0.02 10.07.2017 -77,000 Invoked 830 0.00 17 :DOXM&RPSRQHQWV3ULYDWH/LPLWHG 34,857 0.01 10.08.2017 18,027 Merger 52,884 0.02 23 Annual Report 2017-18 v. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Sr. Name of the Shareholder Shareholding at the beginning Date-wise Increase/Decrease in Reason Cumulative shareholding during the No and at the end of the year Promoters Shareholding during the year year (determined from the benpos information) No. of shares % of total Date Increase/ Decrease No. of shares % of total Shares Shares of the of the Company Company 1 /LIH,QVXUDQFH&RUSRUDWLRQ 15,256,515 4.56 - - - 15,256,515 4.56 Of India 15,256,515 4.56 2 Bennett, Coleman And 12,534,035 3.75 12.05.2017 -100,000 Market Sale 12,434,035 3.72 &RPSDQ\/LPLWHG 19.05.2017 -150,000 Market Sale 12,284,035 3.67 12,284,035 3.67 3 ,'%,%DQN/WG 4,665,770 1.40 4,665,770 1.40 4 ,)&,/WG 3,186,068 0.96 12.03.2017 -10355 Market Sale 3,175,713 0.95 3,175,713 0.95 5 ,QGLD0D[,QYHVWPHQW)XQG 2,603,772 0.78 - - - 2,603,772 0.78 /LPLWHG 2,603,772 0.78 6 General Insurance 2,261,559 0.68 - - - 2,261,559 0.68 Corporation Of India 2,261,559 0.68 7 Sr. Name of the Shareholding at the Date-wise Increase/ Reason Cumulative shareholding No Shareholder beginning and at the end of Decrease in Promoters during the year the year Shareholding during the year For Each of the No. of % of total Date Increase/ No. of % of total Directors and KMP shares Shares Decrease shares Shares of the of the Company Company 1 Venugopal Dhoot 89,575 0.03---89,575 0.03 89,575 0.03 V. Indebtedness Indebtedness of the Company including interest outstanding/accrued but not due for payment Secured Loans Unsecured Deposit Total excluding Loans Indebtedness deposits ,QGHEWHGQHVVDWWKHEHJLQQLQJRIWKH¿QDQFLDO\HDU I. Principal Amount 197,583.16 11,150.00 - 208,733.16 ii. Interest due but not paid 4,760.73 209.53 - 4,970.26 iii. Interest accrued but not due 2,369.14 126.81 - 2,495.95 Total (i+ii+iii) 204,713.03 11,486.34 - 216,199.37 24 Secured Loans Unsecured Deposit Total excluding Loans Indebtedness deposits &KDQJHLQLQGHEWHGQHVVGXULQJWKH¿QDQFLDO\HDU $GGLWLRQ 29,902.95 - - 29,902.95 5HGXFWLRQ 584.55 478.26 - 1,062.81 Net Change 29,318.40 (478.26) 28,840.14 ,QGHEWHGQHVVDWWKHHQGRIWKH¿QDQFLDO\HDU i. Principal Amount 200,091.17 9,250.00 - 209,341.17 ii. Interest due but not paid 31,247.86 1,615.05 32,862.91 iii. Interest accrued but not due 2,692.40 143.03 - 2,835.43 Total (i+ii+iii) 234,031.43 11,008.08 - 245,039.51 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Director and/or Manager : Sl. Particulars of Remuneration Managing Director Total Amount No. Mr. Venugopal N. Dhoot 1 Gross Salary D 6DODU\DVSHUSURYLVLRQVFRQWDLQHGLQVHFWLRQ RIWKH,QFRPHWD[$FW -- E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW -- F 3UR¿WVLQOLHXRIVDODU\XV ,QFRPHWD[$FW -- 2 Stock Option -- 3 6ZHDW(TXLW\ -- 4 Commission -- DVRISUR¿W -others, specify… 5 Others, please specify -- Total (A) -- Ceiling as per the Act ------ B. Remuneration to other directors: (` in Millions) Sl. No. Particulars of Name of Directors Total Remuneration Amount 1. Independent Directors Mr. Subhash Mr. Mrs. Sarita Mr. B. K. Mr. Sanjeev Mr. Pradip S. Dayama Radheyshyam Surve Chopra Kimar Kumar Das Agarwal (Upto Sachdev (Nominee 22.09.2017) (Nominee Director – Director – IDBI Bank IDBI Bank Ltd) (Upto Ltd) (w.e.f. 10.08.2017) 22.09.2017) )HHIRUDWWHQGLQJERDUG 0.52 0.46 0.06 - 0.06 - 1.10 committee meetings - Commission -Others, please specify Total(1) 0.52 0.46 0.06 - 0.06 - 1.10 2. 2WKHU1RQ([HFXWLYH Directors )HHIRUDWWHQGLQJERDUG committee meetings - Commission -Others, please specify Total(2) Total=(1+2) Total Managerial - Remuneration Overall Ceiling as per ------the Act 25 Annual Report 2017-18 C. Remuneration to key managerial personnel other than MD/ MANAGER/ WTD (` in Millions) Sl. Particulars of Remuneration Key Managerial Personnel No. Company &KLHI)LQDQFLDO2I¿FHU Total Secretary Mr. A. A. Gune Mr. Mandar C. Joshi 1. Gross Salary (a) Salary as per provisions contained in section 17(1) 1.00 2.41 - 3.41 RIWKH,QFRPHWD[$FW - - - E 9DOXHRISHUTXLVLWHVXV ,QFRPHWD[$FW - - F 3UR¿WVLQOLHXRIVDODU\XV ,QFRPHWD[ Act,1961 2. Stock Option - - - 3. 6ZHDW(TXLW\ --- 4. Commission --- DVRISUR¿W -others, specify… 5. Others, please specify - - - Total 1.00 2.41 3.41 VII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES: NIL Type Section of the Brief Details of Penalty/ Authority Appeal made, if Companies Act Description Punishment/ [RD/NCLT/ any (give details) Compounding fees COURT] imposed A. COMPANY Penalty - - - - - Punishment - - - - - Compounding - - - - - B. DIRECTORS Penalty - - - - - Punishment - - - - - Compounding - - - - - C. OTHER OFFICERS IN DEFAULT Penalty - - - - - Punishment - - - - - Compounding - - - - - 26 CORPORATE GOVERNANCE REPORT Number of other Boards or Board Committees in which a director is a member or chairperson: The Directors present the Company’s Report on Corporate Governance for the year ended March 31, 2018 Name of the Director Directorships Committee Positions COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCES’ Chairman Member &RUSRUDWH *RYHUQDQFH LV QRW PHUHO\ FRPSOLDQFH LW LV VRPHWKLQJ \RXU Mr. Venugopal N. Dhoot 4 - 3 Company fundamentally believes in. Mr. Radheyshyam Agarwal 7 2 3 In all, there were 6 Directors, including 3 Independent Directors Independent Directors Meeting and a Nominee Director as on March 31, 2018. Mr. Radheyshyam One separate meeting of the Independent Directors was held on Dalchand Agarwal has tendered his resignation as a Director of 23.01.2018, which was attended by all the Independent Directors. WKH&RPSDQ\ZHI-DQXDU\+RZHYHUWKHVDPHZDVQRW taken on record by the Board of Directors upto March 31, 2018 as Board Procedure: WKH%RDUGFRQWLQXHGWRUHTXHVWKLPWRUHFRQVLGHUKLVGHFLVLRQ a) Background None of the Directors hold chairmanship on the Board of any other Public Companies in which they are directors. With a view to institutionalize all corporate affairs and setting up V\VWHPVDQGSURFHGXUHVIRUDGYDQFHSODQQLQJIRUPDWWHUVUHTXLULQJ )XUWKHU QRQH RI WKH QRQH[HFXWLYH LQGHSHQGHQW DQG 1RPLQHH GLVFXVVLRQVGHFLVLRQVE\WKH%RDUGWKH&RPSDQ\KDVZHOOGH¿QHG directors holds any shares or convertible instruments in the guidelines and procedures for meetings of the Board of Directors Company. and Committees thereof. 27 Annual Report 2017-18 b) Scheduling and Selection of the Agenda items order which, may have passed strictures on the conduct of the company or taken an adverse view regarding another The Company Secretary of the Company circulates the agenda enterprise that can have negative implications on the of the meeting along with all the supporting documents to all the &RPSDQ\ DQG directors entitled to receive the same, to facilitate meaningful and TXDOLW\ GLVFXVVLRQV DW WKH WLPH RI WKH PHHWLQJ 7KH QRWLFHV DQG $Q\RWKHUPDWHULDOO\UHOHYDQWLQIRUPDWLRQ agenda along with supporting documents are circulated well in DGYDQFH7KH$JHQGDRIWKH0HHWLQJLV¿QDOL]HGE\WKH&KDLUPDQ d) Recording Minutes of the Proceedings and Managing Director of the Company. Minutes of the proceedings of each Board/Committee/General Body c) Information placed before the Board Members Meetings are recorded. Draft minutes are circulated amongst all the members for their feedback/comments. The minutes of all the The information generally placed before the Board members inter- meetings are entered in the minutes book. alia includes: e) Follow up Mechanism $QQXDORSHUDWLQJSODQVDQGEXGJHWVDQGDQ\XSGDWHV The guidelines for the Board/Committee meetings facilitate an &DSLWDOEXGJHWVDQGDQ\XSGDWHV effective post meeting follow-up, review and reporting process for 4XDUWHUO\$QQXDO UHVXOWV RI WKH &RPSDQ\ DQG LWV RSHUDWLQJ the actions taken on decisions of the Board and the Committees. GLYLVLRQVRUEXVLQHVVVHJPHQWV f) Compliance 0LQXWHV RI WKH PHHWLQJV RI $XGLW &RPPLWWHH DQG RWKHU The Board periodically reviews the compliance reports to ensure &RPPLWWHHVRIWKH%RDUG adherence to all the applicable provisions of the law, rules and 1RWLFHRI'LVFORVXUHRI,QWHUHVW guidelines. 7KH LQIRUPDWLRQ RQ UHFUXLWPHQW DQG UHPXQHUDWLRQ RI VHQLRU g) Code of Conduct RI¿FHV MXVW EHORZ WKH ERDUG OHYHO LQFOXGLQJ DSSRLQWPHQW RU The Board has laid down a Code of Conduct for all directors and UHPRYDORI&KLHI)LQDQFLDO2I¿FHUDQGWKH&RPSDQ\6HFUHWDU\ senior management of the Company, which has been posted on 0DWHULDO LPSRUWDQW OLWLJDWLRQV VKRZ FDXVH GHPDQG the website of the Company i.e. www.videoconindustriesltd.com. prosecution notices and penalty notices, if any and status $OO GLUHFWRUV DQG VHQLRU PDQDJHPHQW SHUVRQQHO KDYH DI¿UPHG XSGDWHV compliance with the code for the year ended March 31, 2018. A declaration to this effect signed by the Chairman and Managing 6DOH RI PDWHULDO QDWXUH RI LQYHVWPHQWV VXEVLGLDULHV DQG 'LUHFWRULVDQQH[HGWRWKLV5HSRUW DVVHWVZKLFKDUHQRWLQWKHQRUPDOFRXUVHRIEXVLQHVV COMMITTEES OF THE BOARD OF DIRECTORS (VWDEOLVKPHQW RSHUDWLRQV DQG VHW XS RI -RLQW 9HQWXUH Subsidiary or Collaboration etc., The Board of Directors of the Company have set up various Committees WR IRFXV RQ VSHFL¿F DUHDV DQG PDNH LQIRUPHG GHFLVLRQV ZLWKLQ WKH ,QYHVWPHQW'LYHVWPHQWRI-RLQW9HQWXUHV6XEVLGLDULHV authority delegated to each of the Committees. Each of the Committee is $FTXLVLWLRQV$PDOJDPDWLRQ5HRUJDQLVDWLRQ RI EXVLQHVV JXLGHGE\ZHOOGH¿QHGVFRSHSRZHUVDQGFRPSRVLWLRQRIWKH&RPPLWWHH VHJPHQWVHWF All decisions and recommendations of the Committees are placed before WKH%RDUGHLWKHUIRULQIRUPDWLRQRUDSSURYDO)ROORZLQJDUHWKHGHWDLOVRI &RPSOLDQFH5HSRUWV the Committees as on March 31, 2018: 0LQXWHVRIWKH%RDUG0HHWLQJV$QQXDO*HQHUDO0HHWLQJVRI 1. AUDIT COMMITTEE: 6XEVLGLDU\&RPSDQLHVDQGVLJQL¿FDQWWUDQVDFWLRQVLIDQ\ The Board has constituted an Audit Committee with all the members 5HODWHG3DUW\7UDQVDFWLRQV EHLQJ 1RQ([HFXWLYH KDYLQJ PDMRULW\ RI ,QGHSHQGHQW 'LUHFWRUV )DWDO RU VHULRXV DFFLGHQWV GDQJHURXV RFFXUUHQFHV DQ\ including the Chairman. They possess sound knowledge and are PDWHULDOHIÀXHQWRUSROOXWLRQSUREOHPV ¿QDQFLDOO\ OLWHUDWH SHUVRQV KDYLQJ YDVW H[SHULHQFH LQ WKH DUHD RI ¿QDQFHDFFRXQWVDQGLQGXVWU\ $Q\ PDWHULDO GHIDXOW LQ ¿QDQFLDO REOLJDWLRQV WR DQG E\ WKH Company, or substantial non-payment for goods sold by the Composition as on March 31, 2018: &RPSDQ\ Name Designation Category 7UDQVDFWLRQV WKDW LQYROYH VXEVWDQWLDO SD\PHQW WRZDUGV JRRGZLOOEUDQGHTXLW\RULQWHOOHFWXDOSURSHUW\ Mr. Radheyshyam Agarwal Chairman Independent 6LJQL¿FDQW ODERXU SUREOHPV DQG WKHLU SURSRVHG VROXWLRQV Mr. Subhash Dayama Member Independent $OVR DQ\ VLJQL¿FDQW GHYHORSPHQW LQ +XPDQ 5HVRXUFH DQG Mrs. Sarita Surve Member Independent ,QGXVWULDO5HODWLRQV During the year under review, the Audit Committee was reconstituted 4XDUWHUO\ GHWDLOV RI IRUHLJQ H[FKDQJH H[SRVXUH DQG WKH due to resignation of Mr. B K Chopra w.e.f. 22.09.2017 from the steps taken by the management to limit the risks of adverse RI¿FHRIWKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\0UV6DULWD6XUYH H[FKDQJHUDWHPRYHPHQWLIPDWHULDO was co-opted as the member of the Audit Committee in place of Mr. B K Chopra. 1RQFRPSOLDQFH RI DQ\ UHJXODWRU\ VWDWXWRU\ RU OLVWLQJ UHTXLUHPHQWVDQGVKDUHKROGHUVVHUYLFHVXFKDVQRQSD\PHQW Meetings and Attendance: RIGLYLGHQGGHOD\LQVKDUHWUDQVIHUHWF During the year under review, 6 meetings of the Committee $Q\LVVXHZKLFKLQYROYHVSRVVLEOHSXEOLFRUSURGXFWOLDELOLW\ were held on, 26.05.2017, 22.09.2017, 20.11.2017, 24.11.2017, claims of substantial nature including any judgment or 05.01.2018, 22.01.2018. 28 Attendance: g) Reviewing and monitoring the auditor’s independence and performance and effectiveness of audit process. Name Meetings Attended K 5HYLHZLQJ WKH DGHTXDF\ RI LQWHUQDO DXGLW IXQFWLRQ LQFOXGLQJ WKH VWUXFWXUH RI WKH LQWHUQDO DXGLW GHSDUWPHQW VWDI¿QJ DQG Mr. RadheyShyam Agarwal 5 VHQLRULW\ RI WKH RI¿FLDO KHDGLQJ WKH GHSDUWPHQW UHSRUWLQJ Mr. Subhash Dayama 6 VWUXFWXUHFRYHUDJHDQGIUHTXHQF\RILQWHUQDODXGLW Mr. Bhopinder Chopra (upto 22.09.2017 - L 'LVFXVVLRQ ZLWK LQWHUQDO DXGLWRUV UHJDUGLQJ DQ\ VLJQL¿FDQW 0UV6DULWD6XUYH )URP 2 ¿QGLQJVDQGIROORZXSWKHUHRQ The Statutory Auditors, Cost Auditors and the Head of Internal M 5HYLHZLQJWKH¿QGLQJVLIDQ\RIDQ\LQWHUQDOLQYHVWLJDWLRQVE\ Audit attended and participated in the meetings, on invitation. The the internal auditors into matters where there is a suspected Company Secretary was the de-facto Secretary of the Committee. fraud or irregularity or a failure of internal control systems of a Terms of reference and Scope of the Committee: material nature and reporting the matter to the Board. The following are the terms of reference and scope of the Audit k) Discussion with statutory auditors before the commencement Committee: of audit, on nature and scope of audit as well as post-audit discussion to ascertain any area of concern. D 2YHUDOO DVVHVVPHQW RI WKH &RPSDQ\¶V ¿QDQFLDO UHSRUWLQJ SURFHVVDQGWKHGLVFORVXUHRILWV¿QDQFLDOLQIRUPDWLRQDQGWR O $SSURYDORUDQ\VXEVHTXHQWPRGL¿FDWLRQRIWUDQVDFWLRQVRIWKH Company with related parties. HQVXUH WKDW WKH ¿QDQFLDO VWDWHPHQW LV FRUUHFW VXI¿FLHQW DQG credible. m) To look into the reasons for substantial defaults, if any, in the b) Recommending to the Board the appointment, re-appointment payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors. DQG LI UHTXLUHG WKH UHSODFHPHQW RU UHPRYDO RI WKH VWDWXWRU\ DXGLWRUV DQG ¿[DWLRQ RI WKH DXGLW IHH DQG DOVR DSSURYDO IRU n) Scrutiny of inter-corporate loans and investments. payment for any other services rendered by the Auditors. o) Valuation of undertakings or assets of the Company, wherever F 5HYLHZLQJZLWKPDQDJHPHQWWKHDQQXDO¿QDQFLDOVWDWHPHQWV it is necessary. before submission to the Board for approval, focusing primarily on: S (YDOXDWLRQRILQWHUQDO¿QDQFLDOFRQWUROVDQGULVNPDQDJHPHQW systems. 0DWWHUVUHTXLUHGWREHLQFOXGHGLQWKH'LUHFWRU¶V5HVSRQVLELOLW\ Statement to be included in the Board’s Report in terms of T )LQDQFLDO6WDWHPHQWVDQG,QYHVWPHQWVPDGHE\6XEVLGLDULHV Clause (c) of Sub- Section (3) of Section 134 of the Companies r) To review the functioning of Whistle Blower Mechanism. Act, 2013. V $SSURYDO RI DSSRLQWPHQW RI &)2 LH ZKROHWLPH ¿QDQFH &KDQJHV LI DQ\ LQ DFFRXQWLQJ SROLFLHV DQG SUDFWLFHV DQG GLUHFWRURUDQ\RWKHUSHUVRQKHDGLQJWKH¿QDQFHIXQFWLRQRU reasons for the same. GLVFKDUJLQJ WKDW IXQFWLRQ DIWHU DVVHVVLQJ WKH TXDOL¿FDWLRQV 0DMRU DFFRXQWLQJ HQWULHV LQYROYLQJ HVWLPDWHV EDVHG RQ H[SHULHQFHDQGEDFNJURXQGHWFRIWKHFDQGLGDWH H[HUFLVHRIMXGJPHQWE\PDQDJHPHQW t) Carrying out any other function which is mentioned in the 0RGL¿HGRSLQLRQ V LQWKHGUDIWDXGLWUHSRUW terms of reference of the Audit Committee. 6LJQL¿FDQW DGMXVWPHQWV PDGH LQ WKH ¿QDQFLDO VWDWHPHQWV The Committee also reviews: DULVLQJRXWRIDXGLW¿QGLQJV 0DQDJHPHQWGLVFXVVLRQDQGDQDO\VLVRI¿QDQFLDOFRQGLWLRQV 7KHJRLQJFRQFHUQDVVXPSWLRQ and results of operations. &RPSOLDQFHZLWKDFFRXQWLQJVWDQGDUGV 6WDWHPHQWRIVLJQL¿FDQWUHODWHGSDUW\WUDQVDFWLRQVLIDQ\ 4XDOL¿FDWLRQLQWKHGUDIWDXGLWUHSRUWLIDQ\ 0DQDJHPHQW /HWWHUV/HWWHUV RI LQWHUQDO FRQWURO ZHDNQHVVHV issued by the Statutory Auditors. &RPSOLDQFH ZLWK /LVWLQJ $JUHHPHQW DQG RWKHU OHJDO UHTXLUHPHQWVFRQFHUQLQJ¿QDQFLDOVWDWHPHQWV ,QWHUQDO$XGLW5HSRUWVUHODWLQJWRLQWHUQDOFRQWUROZHDNQHVVHV $Q\UHODWHGSDUW\WUDQVDFWLRQVLHWUDQVDFWLRQVRIWKH&RPSDQ\ 7KHDSSRLQWPHQWUHPRYDODQGWHUPVRIUHPXQHUDWLRQRIWKH of material nature, with promoters or the management, their Chief Internal Auditor shall be subject to review by the Audit VXEVLGLDULHVRUUHODWLYHVHWFWKDWPD\KDYHSRWHQWLDOFRQÀLFW Committee. with the interests of Company at large. 6WDWHPHQWRIGHYLDWLRQV G 5HYLHZLQJZLWKWKHPDQDJHPHQWWKHTXDUWHUO\¿QDQFLDOUHVXOWV D 4XDUWHUO\ VWDWHPHQW RI GHYLDWLRQ V LQFOXGLQJ UHSRUW RI before submission to the Board for approval. monitoring agency, if applicable, submitted to stock e) Reviewing, with the management, the statement of utilization/ H[FKDQJH V LQWHUPVRI5HJXODWLRQ application of funds raised through an issue (public issue, rights b) Annual statement of funds utilized for purposes other than issue, preferential issue, etc), the statement of funds utilized those stated in the offer document/prospectus/notice in terms for purposes other than those stated in the offer document/ of Regulation 32(7). prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or The Audit Committee is also vested with the following powers: rights issue and making appropriate recommendations to the 7RLQYHVWLJDWHDQ\DFWLYLW\ZLWKLQLWVWHUPVRIUHIHUHQFH Board to take up steps in this matter. 7RVHHNLQIRUPDWLRQIURPDQ\HPSOR\HH f) Reviewing, with the management, the performance of VWDWXWRU\DXGLWRUVDQGLQWHUQDODXGLWRUVDGHTXDF\RILQWHUQDO 7RREWDLQRXWVLGHOHJDORURWKHUSURIHVVLRQDODGYLFH control systems. 7RVHFXUHDWWHQGDQFHRIRXWVLGHUVZLWKUHOHYDQWH[SHUWLVHLILW considers necessary. 29 Annual Report 2017-18 Whistle Blower Policy & Vigil Mechanism 'HWHUPLQLQJWKHUHPXQHUDWLRQSROLF\RIWKH&RPSDQ\ 7KH &RPSDQLHV $FW DQG 6(%, 5HJXODWLRQV UHTXLUH DOO WKH 5HFRPPHQGLQJWRWKH%RDUGUHWLUHPHQWEHQH¿WV listed companies to institutionalize the vigil mechanism and Whistle Blower Policy. Accordingly, the Board has adopted Whistle Blower 5HYLHZLQJ WKH SHUIRUPDQFH RI HPSOR\HHV DQG WKHLU Policy to promote reporting of any unethical or improper practice FRPSHQVDWLRQ DQG or violation of the Company’s Code of Conduct or complaints $WWHQGLQJWRDQ\RWKHUUHVSRQVLELOLW\DVPD\EHHQWUXVWHGE\ regarding its accounting, auditing, internal controls or disclosure practices. It gives a platform to the whistle blower to report any the Board. unethical or improper practice (not necessarily violation of law) and Remuneration Policy: WRGH¿QHSURFHVVHVIRUUHFHLYLQJDQGLQYHVWLJDWLQJFRPSODLQWV7KH FRQ¿GHQWLDOLW\RIWKRVHUHSRUWLQJYLRODWLRQVLVPDLQWDLQHGDQGWKH\ The Company has formulated the remuneration policy. The are not subjected to any discriminatory practice. More details are details of this policy are available on the Company’s website viz. available on website www.videoconindustriesltd.com www.videoconindustriesltd.com. 2. NOMINATION AND REMUNERATION COMMITTEE: Performance Evaluation Criteria for Independent Directors: Composition of the Committee as on March 31, 2018: The Board evaluates the performance of independent directors H[FOXGLQJ WKH GLUHFWRU EHLQJ HYDOXDWHG RQ WKH EDVLV RI WKH Name Designation Category contributions and suggestions made to the Board with respect to Mr. Subhash Dayama Chairman Independent ¿QDQFLDOVWUDWHJ\EXVLQHVVRSHUDWLRQVHWF Mr. Radheyshyam Agarwal Member Independent Familiarisation Program for Independent Directors: Mrs. Sarita Surve Member Independent The details of the familiarization program are available on During the year under review, the Nomination and Remuneration Committee was reconstituted due to resignation of Mr. B K Chopra the Company’s website viz. http://www.videoconindustriesltd. ZHI IURP WKH RI¿FH RI WKH %RDUG RI 'LUHFWRUV RI WKH FRP'RFXPHQWV)DPLOLDULVDWLRQ3URJUDPIRU Company. Mrs. Sarita Surve was co-opted as the member of the independent%20directors.pdf Nomination and Remuneration Committee in place of Mr. B K Director’s Remuneration: Chopra. (a) The Promoter Director is not paid any sitting fees. Mr. Company Secretary acts as the de-facto Secretary to the Committee. Venugopal N. Dhoot, Chairman and Managing Director is not Meetings and attendance: entitled for remuneration as per his terms of appointment. 'XULQJWKH¿QDQFLDO\HDUXQGHUUHYLHZPHHWLQJVRIWKH&RPPLWWHH (b) The Independent Directors are paid only sitting fees for were held on 26.05.2017, 22.09.2017 and 20.11.2017 attending Board/Committee Meetings. The details of payment/ entitlement of sitting fee during the period under review are as Name Meetings Attended follows: Mr. RadheyShyam Agarwal 3 ` Mr. Subhash Dayama 3 Sr. Name of the Director Sitting Fees ( ) No. Mr. Bhopinder Chopra (upto 22.09.2017 - 1 Mr. RadheyShyam Agarwal 4,60,000 0UV6DULWD6XUYH )URP - 2 Mr. Bhopinder Chopra - Terms of reference and Scope of the Committee: (upto 22.09.2017) 3 Mr. Subhash Dayama 5,20,000 The terms of reference and scope of the Committee are represented below: 4. Mrs. Sarita Surve 60,000 5 Mr. Pradip Kumar Das - )RUPXODWLRQ RI WKH FULWHULD IRU GHWHUPLQLQJ TXDOL¿FDWLRQV 6. Mr. Sanjiv Kumar Sachdev 60,000 positive attributes and independence of the director and recommend to the board of directors a policy relating to the Stock Options: remuneration of the directors, key managerial personnel and RWKHUHPSOR\HHV The Company has not issued any Stock Options. )RUPXODWLRQ RI FULWHULD IRU HYDOXDWLRQ RI SHUIRUPDQFH RI 3. STAKEHOLDERS’ RELATIONSHIP COMMITTEE: LQGHSHQGHQWGLUHFWRUVDQGWKHERDUGRIGLUHFWRUV Composition as on March 31, 2018: 'HYLVLQJWKHSROLF\RQGLYHUVLW\RIWKHERDUGRIGLUHFWRUV The composition of the Stakeholders’ Relationship Committee of the ,GHQWLI\LQJSHUVRQVZKRDUHTXDOL¿HGWREHFRPHGLUHFWRUVDQG Board of Directors as on March 31, 2018, was as under: who may be appointed in senior management in accordance with the criteria laid down and recommend to the board of Name Designation Category GLUHFWRUVWKHLUDSSRLQWPHQWDQGUHPRYDO Mr. Subhash Dayama Chairman Independent :KHWKHU WR H[WHQG RU FRQWLQXH WKH WHUP RI DSSRLQWPHQW RI Mr. Radheyshyam Agarwal Member Independent independent director on the basis of the report of performance Mr. Venugopal N. Dhoot Member ([HFXWLYH HYDOXDWLRQRILQGHSHQGHQWGLUHFWRUV During the year under review, the Stakeholders’ Relationship )L[LQJ 5HYLHZLQJWKHUHPXQHUDWLRQRIWKH&KLHI([HFXWLYHV Committee was reconstituted due to resignation of Mr. B K Chopra DQGRWKHUVHQLRURI¿FHUVRIWKH&RPSDQ\ ZHI IURP WKH RI¿FH RI WKH %RDUG RI 'LUHFWRUV RI WKH 5HFRPPHQGLQJ WKH UHPXQHUDWLRQ LQFOXGLQJ WKH SHUTXLVLWH Company. Mr. Venugopal N Dhoot was co-opted as the member of SDFNDJHRINH\PDQDJHPHQWSHUVRQQHO Stakeholders’ Relationship Committee in place of Mr. B K Chopra. 30 Meetings and Attendance: Demat/Remat of Shares: DurinJWKH¿QDQFLDO\HDUXQGHUUHYLHZPHHWLQJVZHUHKHOGRQWKH Sr. Particulars Equity following dates 12.05.2017, 24.05.2017, 27.06.2017, 22.09.2017, No. 20.11.2017 and 23.01.2018 a) 1XPEHURI'HPDW5HTXHVWVDSSURYHG 1,446 b) Number of Sub-committee Meetings held 46 Name Meetings Attended c) Number of Shares Dematerialized 20,160 Mr. Subhash Dayama 6 d) Percentage of Shares Dematerialized 0.01 0U%KRSLQGHU&KRSUD 8SWR - e) 1XPEHURI5HPDWHULDOL]DWLRQ5HTXHVWV 3 Mr. RadheyShyam Agarwal 6 approved f) Number of Shares Rematerialized 13,063 Mr. Venugopal N. Dhoot 2 &RPSOLDQFH2I¿FHU Details of complaints received and redressed during the year ended March 31, 2018: 0U0DQGDU-RVKL&RPSDQ\6HFUHWDU\LVWKH&RPSOLDQFH2I¿FHU During the year under review, the pending complaints at the Terms of reference and Scope of the Committee: beginning of the year were 2. The Company received 538 complaints The Stakeholders’ Relationship Committee plays an important role during the year under review. 535 were redressed to the satisfaction in acting as a link between the management and ultimate owners of of the shareholders. However, there are 5 pending complaints in the Company i.e., the shareholders. respect of which the Registrar has sent interim responses to the Investors. The Committee has delegated the power of Share Transfer to Registrar and Share Transfer Agent, who processes the transfers. 4. RISK MANAGEMENT COMMITTEE: The Committee also looks after the redressal of investors’ grievances The Company has constituted the Risk Management Committee to and performance of the Registrar and Share Transfer Agent of the PRQLWRU DQG UHYLHZ WKH ULVN PDQDJHPHQW SODQ )UDPHZRUN RI WKH Company and recommends measures for overall improvement in 5LVN 0DQDJHPHQW LQFOXGHV 5LVN ,GHQWL¿FDWLRQ 5LVN$VVHVVPHQW WKHTXDOLW\RILQYHVWRUVHUYLFHV Risk Measurement, Risk Mitigation and Monitoring, Risk Treatment and Risk Reporting. Scope of the Committee: The Company has in place a comprehensive policy on risk 7UDQVIHURIVKDUHV management for assessment of risk and minimize their adverse impact on the activities of the Company. The same is displayed on 7UDQVPLVVLRQRIVKDUHV the Company’s website viz. www.videoconindustriesltd.com. ,VVXHRI'XSOLFDWH6KDUH&HUWL¿FDWHV Composition of the Committee: &KDQJHRI6WDWXV The composition of the Committee as on March 31, 2018, was as &KDQJHRIQDPH under: 7UDQVSRVLWLRQRIVKDUHV Name Designation Category Mr. Radheyshyam Agarwal Chairman Independent 6XEGLYLVLRQRIVKDUHV Mr. Subhash Dayama Member Independent ,VVXHDQG$OORWPHQWRIVHFXULWLHV Mrs. Sarita Surve Member Independent &RQVROLGDWLRQRI)ROLRV During the year under review, the Risk Management Committee was reconstituted due to resignation of Mr. B K Chopra w.e.f. 22.09.2017 5HTXHVWV IRU 'HPDWHULDOL]DWLRQ5HPDWHULDOL]DWLRQ RI VKDUHV IURPWKHRI¿FHRIWKH%RDUGRI'LUHFWRUVRIWKH&RPSDQ\0UV6DULWD and Surve was co-opted as the member of Risk Management Committee in place of Mr. B K Chopra. 5HGUHVVDORILQYHVWRUJULHYDQFHV Meeting and Attendance The Committee also closely monitors compliance of the code of conduct for prevention of insider trading. Two meetings were held on 26.05.2017and 22.09.2017 which were attended by Mr. Radheyshyam Agarwal and Mr. Subhash Dayama. The power of share transfer has been delegated to M/s. MCS Share 7UDQVIHU$JHQW/LPLWHG5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWRIWKH 5. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (CSR): Company, who processes the transfers. Composition of the Committee: Share Transfer Details: The Composition of the Committee as on March 31, 2018 was as The number of Shares transferred during the year under review: under: Sr. Particulars Equity Name Designation Category No. Mr. Venugopal N. Dhoot Chairman 3URPRWHU([HFXWLYH Mr. Radheyshyam Agarwal Member Independent a) Number of Transfers 188 Mr. Subhash Dayama Member Independent b) Average No. of Transfers per Month 15.67 During the year under review Mr. B. K. Chopra Ceased to be c) Number of Shares Transferred 3,006 PHPEHU RI &65 &RPPLWWHH FRQVHTXHQW WR UHVLJQDWLRQ IURP WKH RI¿FHRIERDUGRI'LUHFWRURIWKH&RPSDQ\ZHI 31 Annual Report 2017-18 Terms of Reference of the Committee: Terms of reference: The Terms of Reference of the Committee are to:- The said Committee was formed to re-organize and segregate various business segments of the Company with a view to ensure )RUPXODWHDQGUHFRPPHQGWRWKH%RDUGWKH&653ROLF\DQG greater focus to the operation of each of its diverse businesses, its review from time-to-time. enhanced value for shareholders and improvement in the business 5HFRPPHQGWKHDPRXQWRIH[SHQGLWXUHWREHLQFXUUHGRQWKH prospects of the Company. The said Committee have the powers CSR activities. WRHQJDJHDQGDSSRLQWOHJDOWD[¿QDQFLDODQGRWKHUFRQVXOWDQWVWR advise and assist it in the above said matter and do all such acts, 3. Ensure effective implementation and monitoring of the CSR GHHGVDQGWKLQJVDVPD\EHUHTXLUHG activities as per the approved policy, plans and budget. GENERAL BODY MEETINGS (QVXUH FRPSOLDQFH ZLWK WKH ODZV UXOHV UHJXODWLRQV governing the CSR and to periodically report to the Board of Location and time, where last three Annual General Meetings Directors. were held: AGM Date Location Time Special Meeting and Attendance Resolution No Meeting was held during the year under review Passed 25th -XQH 14 K. M. Stone, 10:00 1 (One) 6. FINANCE AND GENERAL AFFAIRS COMMITTEE: Aurangabad - Paithan am Composition as on March 31, 2018: Road, Village: Chittegaon, Taluka: Paithan, District: Name Designation Category Aurangabad-431 105 Mr. Venugopal N. Dhoot Chairman 3URPRWHU([HFXWLYH 26th -XQH 14 K. M. Stone, 11.30 1 (One) Aurangabad - Paithan am Mr. Radheyshyam Agarwal Member Independent Road, Village: Chittegaon, Taluka: Mr. Subhash S. Dayama Member Independent Paithan, District: Aurangabad-431 105 During the year under review, Mr. B. K. Chopra ceased to be PHPEHU RI )LQDQFH $QG *HQHUDO $IIDLUV &RPPLWWHH FRQVHTXHQW 27th December 22, 14 K. M. Stone, 11.00 1 (One) WRUHVLJQDWLRQIURPWKHRI¿FHRIERDUGRI'LUHFWRURIWKH&RPSDQ\ 2017 Aurangabad - Paithan am w.e.f. 22.09.2017. Road, Village: Chittegaon, Taluka: The Company Secretary was the de-facto Secretary of the Paithan, District: Committee. Aurangabad-431 105 Meeting and Attendance: Postal Ballot 'XULQJWKH¿QDQFLDO\HDUXQGHUUHYLHZWKH&RPPLWWHHPHW WLPHV No special resolution was passed through postal ballot during the ¿QDQFLDO\HDUXQGHUUHYLHZ Name Meetings Attended None of the businesses are proposed to be transacted at the Mr. Venugopal N. Dhoot 19 HQVXLQJ $QQXDO *HQHUDO 0HHWLQJ ZKLFK UHTXLUHV SDVVLQJ RI D Special resolution through postal ballot. Mr. RadheyShyam Agarwal 15 Extra-Ordinary General Meeting Mr. Bhopinder Chopra (upto 22.09.2017 ) - 1R([WUDRUGLQDU\*HQHUDO0HHWLQJZDVKHOGGXULQJWKH\HDUXQGHU Mr. Subhash S. Dayama 17 reference. Terms of reference and Scope of the Committee: MEANS OF COMMUNICATION The Committee is entrusted with various powers from time to 7KH &RPSDQ\ UHJXODUO\ LQWLPDWHV LWV ¿QDQFLDO UHVXOWV DXGLWHG time, which shall aid in speedy implementation of various projects, OLPLWHGUHYLHZHGWRWKH6WRFN([FKDQJHVDVVRRQDVWKHVDPHDUH activities and transaction whether routine or non-routine in nature. WDNHQRQUHFRUGDSSURYHG7KHVH¿QDQFLDOUHVXOWVDUHSXEOLVKHGLQ WKH)UHH3UHVV-RXUQDODQG/RNVDWWD(QJOLVKDQG0DUDWKLODQJXDJH 7. RE-ORGANIZATION COMMITTEE: newspapers, respectively. These results are not distributed/sent individually to the shareholders. Composition as on March 31, 2018: ,QWHUPVRIWKHUHTXLUHPHQWVRIWKH/LVWLQJ5HJXODWLRQVWKHUHSRUWV Name Designation Category VWDWHPHQWV GRFXPHQWV ¿OLQJV DQG DQ\ RWKHU LQIRUPDWLRQ LV HOHFWURQLFDOO\VXEPLWWHGWRWKHUHFRJQL]HGVWRFNH[FKDQJHVWKURXJK Mr. Venugopal N. Dhoot Chairman 3URPRWHU([HFXWLYH www.listing.bseindia.com and www.connect2nse.com XQOHVVWKHUH Mr. Radheyshyam Member Independent DUHDQ\WHFKQLFDOGLI¿FXOWLHVZKLOH¿OLQJWKHVDPH Agarwal $OOLPSRUWDQWLQIRUPDWLRQDQGRI¿FLDOSUHVVUHOHDVHVDUHGLVSOD\HGRQ WKHZHEVLWHIRUWKHEHQH¿WRIWKHSXEOLFDWODUJH$QDO\VWV¶5HSRUWV Meeting and attendance- Research Report, if any, are also uploaded on the website of the No meeting was held during the year under review. Company. The Company’s website can be accessed at www. videoconindustriesltd.com. Management Discussion and Analysis Report forms part of the Annual Report. 32 GENERAL SHAREHOLDER INFORMATION MARKET PRICE DATA: ANNUAL GENERAL MEETING: $YHUDJHPRQWKO\KLJKDQG/RZSULFHVDW%6(DQG16(DUHJLYHQEHORZ The Twenty-Seventh Annual General Meeting of the Company will Month BSE NSE be held as per the following schedule: High Low High Low April-17 109.1 103 105.18 103.54 Day As set out in the Notice convening AGM May-17 104.3 40.65 85.97 84.25 Date As set out in the Notice convening AGM -XQH 38.65 16.35 25.48 25.26 Time As set out in the Notice convening AGM -XO\ 33.5 21.7 27.28 26.12 Venue $WWKH5HJLVWHUHG2I¿FH .06WRQH Aurangabad - Paithan Road, Village: Chittegaon, August-17 24.9 17.55 20.72 19.74 Taluka: Paithan Dist.: Aurangabad - 431 105 September-17 20.4 15.9 18.56 17.78 (Maharashtra) October-17 17.9 15 16.43 15.83 FINANCIAL CALENDER FOR THE YEAR ENDED 31ST MARCH, 2019: November-17 17 12.1 14.94 14.30 December-17 21.4 15.3 18.19 17.32 7KH¿QDQFLDOFDOHQGDU WHQWDWLYH VKDOOEHDVXQGHU -DQXDU\ 27.3 17.85 23.01 21.75 Financial Year April 1, 2018 to March 31, 2019 )HEUXDU\ 19.85 14.6 17.77 16.83 )LUVW4XDUWHUO\5HVXOWV On or before August 14, 2018 March-18 16.25 12.5 14.40 13.58 6HFRQG4XDUWHUO\5HVXOWV On or before November 14, 2018 $ FRPSDUDWLYH FKDUW VKRZLQJ 9LGHRFRQ ,QGXVWULHV /LPLWHG 9,/ +LJK 7KLUG4XDUWHUO\5HVXOWV 2QRUEHIRUH)HEUXDU\ verses BSE High: )RXUWK4XDUWHUO\5HVXOWV On or before May 30, 2019 40,000 120 35,000 Annual General Meeting for On or before September 30, 2019 100 st year ending 31 March, 2018 30,000 PRICES STOCK VIIL 80 DATE OF BOOKCLOSURE: 25,000 20,000 60 The date of Book Closure for the purpose of Annual General Meeting Sensex 15,000 shall be communicated separately and will be set out in the Notice 40 convening the Annual General Meeting. 10,000 20 5,000 LISTING ON STOCK EXCHANGES AND STOCK CODE: 0 0 7KH(TXLW\6KDUHVRI\RXU&RPSDQ\DUHOLVWHGRQ%6(/LPLWHGDQG Jul-17 Jan-18 Jun-17 Oct-17 Apr-17 Feb-18 Sep-17 Dec-17 Aug-17 Nov-17 Mar-18 7KH1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG 16( 7KHQDPHV May-17 and addresses are given below: Sensex VIL BSE Sr. Name and Address of the Stock Stock $ FRPSDUDWLYH FKDUW VKRZLQJ 9LGHRFRQ ,QGXVWULHV /LPLWHG 9,/ +LJK No. Exchanges Code verses NSE High: 1 %6(/LPLWHG 511389 11000.00 120.00 3KLUR]H-HHMHHEKR\7RZHUV Dalal Street, Mumbai- 400 001 10500.00 100.00 Web: www.bseindia.com PRICES STOCK VIL 10000.00 80.00 2 7KH1DWLRQDO6WRFN([FKDQJHRI,QGLD VIDEOIND /LPLWHG 16( 9500.00 60.00 NIFTY ([FKDQJH3OD]D 9000.00 40.00 %DQGUD.XUOD&RPSOH[ Bandra East, 8500.00 20.00 Mumbai - 400 051 8000.00 - Web: www.nseindia.com Jul-17 Jan-18 Jun-17 Oct-17 Apr-17 Feb-18 Sep-17 Dec-17 Aug-17 Nov-17 Mar-18 Global Depository Receipts of the Company are listed on: May-17 %RXUVHGH/X[HPERXUJDYHQXHGHOD3RUWH1HXYH/ /X[HPERXUJ:HE www.bourse.lu NIFTY VIL NSE Foreign Currency Convertible Bonds of the Company are listed on: REGISTRAR AND SHARE TRANSFER AGENT: 6LQJDSRUH([FKDQJH6HFXULWLHV7UDGLQJ/LPLWHG6KDQWRQ:D\ 0&66KDUH7UDQVIHU$JHQW/LPLWHG 19-00, SGX Centre 1, Singapore - 068 804 $ &:LQJQGÀRRU*RNXO,QGXVWULHV(VWDWH%XLOGLQJ Web: ZZZVJ[FRP Sagbaug, Marol Co-op Industrial Area, %+7LPHV6TXDUH$QGKHUL(DVW0XPEDL The Company has not paid listing fees for the year 2017-18 to both Tel. 022-40206022-25 WKH6WRFN([FKDQJHVDQGWKH&XVWRGLDO)HHVIRUWKH\HDU )D[(PDLO [email protected] to National SHFXULWLHV 'HSRVLWRU\ /LPLWHG DQG &HQWUDO 'HSRVLWRU\ 6HUYLFHV ,QGLD /LPLWHGIRUWKH\HDUXQGHUUHYLHZ SHARE TRANSFER SYSTEM: Shares received for transfer by the Company or its Registrar and Share Transfer Agent in physical mode are processed and all valid transfers are DSSURYHG7KHVKDUHFHUWL¿FDWH V LVDUHGXO\WUDQVIHUUHGDQGGLVSDWFKHG within a period of 15 days from the date of receipt 33 Annual Report 2017-18 DISTRIBUTION OF SHAREHOLDING: A) Shareholding Pattern as on March 31, 2018: Category Category of Shareholder Number of Total Number of As a percentage Code Shareholders Shares of (A+B+C) (A) Shareholding of Promoter and Promoter Group (1) Indian 38 148,430,733 44.38 (2) )RUHLJQ - - - Sub-Total (A) 38 148,430,733 44.38 (B) Public Shareholding (1) Institutions 103 34,209,350 10.23 (2) Non-Institutions -Bodies Corporate 1,700 2,96,52,945 8.86 -Individuals 330,523 8,04,78,035 24.07 -Others 2,499 4,16,87,812 12.46 Sub-Total (B) 334,825 18,60,28,142 55.62 TOTAL (A) + (B) 296,458 334,458,875 100.00 (C) Shares held by Custodians and against which depository Receipt have been issued (1) Promoter and Promoter Group (2) Public - - - Sub-total (C) - - - GRAND TOTAL (A) + (B) + (C) 3,34,458,875 100.00 B) Distribution of Shareholding as on March 31, 2018: Shareholding of Nominal Value Number of % to the total num- No. of Shares Amount in ` % to Total value Shareholders ber of shareholders of Capital 8SWR 313,647 93.69 11,090,143 110,901,430 3.32 5001 to 10000 9,247 2.76 7,856,127 78,561,270 2.35 10001 to 20000 5,103 1.52 8,066,580 80,665,800 2.41 20001 to 30000 1,937 0.58 5,078,866 50,788,660 1.52 30001 to 40000 982 0.29 3,597,625 35,976,250 1.08 40001 to 50000 1,006 0.30 4,823,172 48,231,720 1.44 50001 to 100000 1,568 0.47 11,914,389 119,143,890 3.56 100001 and above 1,289 0.39 282,031,973 2,820,319,730 84.32 Total 334,779 100.00 334,458,875 3,344,588,750 100.00 DEMATERIALIZATION OF SHARES AND LIQUIDITY: 7KH&RPSDQ\¶V(TXLW\6KDUHVDUHXQGHUFRPSXOVRU\GHPDWWUDGLQJE\DOOFDWHJRULHVRILQYHVWRUV$VRQ0DUFK (TXLW\ 6KDUHVKDYHEHHQGHPDWHULDOL]HGZKLFKDFFRXQWIRU RIWKHWRWDOHTXLW\ OUTSTANDING GDRs/ ADRs/WARRANTS OR CONVERSION INSTRUMENTS, CONVERSION DATE AND LIKELY IMPACT ON EQUITY (March 31, 2018): 7KHGHWDLOVRIRXWVWDQGLQJ)&&%VDQGWKHLUOLNHO\LPSDFWRQWKHHTXLW\XSRQFRQYHUVLRQDUHWDEXODWHGDVXQGHU Sr. No. Particulars FCCB 1 3ULQFLSDO9DOXHRIWKH)&&%VLVVXHG 86' 2 3ULQFLSDO9DOXHRI)&&%VFRQYHUWHGLQWRHTXLW\WLOO0DUFK - 3 8QGHUO\LQJHTXLW\VKDUHVLVVXHGSXUVXDQWWRFRQYHUVLRQRI)&&%VDVUHIHUUHG61R - 4 3ULQFLSDO9DOXHRI)&&%VRXWVWDQGLQJDWWKHHQGRIWKHSHULRGLHDVRQ0DUFK 86' 5 8QGHUO\LQJHTXLW\VKDUHVZKLFKPD\EHLVVXHGXSRQFRQYHUVLRQRI)&&%VDVUHIHUUHGLQ61R 36,917,348 hereinabove. 34 DISCLOSURE OF COMMODITY PRICE RISKS AND COMMODITY news papers and are also posted on the Company’s website, HEDGING ACTIVITIES: the same are not being sent to the shareholders. 7KH5LVN0DQDJHPHQW&RPPLWWHHLGHQWL¿HVWKHULVNHOHPHQWVDQG b. 0RGL¿HG2SLQLRQLQ$XGLWRUV5HSRUW 7KH&RPSDQ\¶V)LQDQFLDO manages the risk pertaining to hedging activities and periodically Statements for the year ended 31st March, 2018 does not GLVFXVVHV PLWLJDWHVWKHLGHQWL¿HGULVNVIURPWLPHWRWLPH FRQWDLQDQ\PRGL¿HGDXGLWRSLQLRQ. :$55$176 c. Reporting of Internal Auditor: The Internal Auditor reports to the Audit Committee. There were no warrants issued during the year under review. Weblink where the policy for determining material subsidiary 3/$17/2&$7,216 and related party transactions is disclosed. The Company has manufacturing facilities at the following locations: The policy on material subsidiary and related party 1. 14 K. M. Stone, Aurangabad-Paithan Road, Village: Chittegaon, transactions is disclosed on the Company’s weblink viz. Taluka: Paithan, Dist.: Aurangabad - 431 105, Maharashtra. http://www.videoconindustriesltd.com/PolicieChar.aspx 9LOODJH &KDYDM9LD6RFLHW\$UHD7DOXND 'LVW %KDUXFK The Company is in compliance with the corporate governance Gujarat. UHTXLUHPHQWVVSHFL¿HGLQ5HJXODWLRQWRDQG&ODXVH E WR L of sub-regulation (2) of Regulation 46 of SEBI Regulations. 9LJ\DQ 1DJDU ,QGXVWULDO $UHD 2SS 5,,&2 RI¿FH 6KDKMDKDQSXU Dist.: Alwar-301 706, Rajasthan. Disclosure with respect to Demat Suspense Account/Unclaimed Suspense Account $''5(66)25&255(6321'(1&( As on March 31, 2018, 1,03,756 Equity Shares held by 24,038 Equity 9LGHRFRQ,QGXVWULHV/LPLWHG Shareholders were unclaimed. The Company has transferred all the 14 K.M. Stone, Aurangabad-Paithan Road, Village: Chittegaon, unclaimed shares into one folio in the name of “Videocon Industries Taluka: Paithan,Dist.: Aurangabad-431 105, Maharashtra Tel: Limited – Unclaimed Suspense Account” and is in process of 02431-663933 (Secretarial Dept.) dematerialization of the said shares. All those shareholders whose 7HO )D[ shares are unclaimed are required to contact the Company or M/s. Email: [email protected] MCS Share Transfer Agent Limited, Registrar and Transfer Agent The Correspondence address for shareholders in respect of their of the Company with self attested copy of PAN Card for each of the TXHULHVLV joint shareholder(s) and Address Proof. On receipt of the request OHWWHUDQGRQYHUL¿FDWLRQIRUPWKH&RPSDQ\VKDOODUUDQJHWRFUHGLW 0&66KDUH7UDQVIHU$JHQW/LPLWHG the shares lying in the Unclaimed Suspense Account to demat $ &:LQJQGÀRRU*RNXO,QGXVWULHV(VWDWH%XLOGLQJ DFFRXQW RI FRQFHUQ VKDUHKROGHU RU GHOLYHU WKH VKDUH FHUWL¿FDWH V Sagbaug, Marol Co-op Industrial Area, after re-materialising the same. During the year under review, the %+7LPHV6TXDUH Andheri East, Mumbai- 400059. Company has not received any request from such shareholder for 7HO)D[ transfer of any shares from the Suspense Account and as such no E-mail: [email protected] shares were transferred from the said Account. The voting rights DISCLOSURES on such shares shall remain frozen till the rightful owner claims the shares. 0DWHULDOO\ VLJQL¿FDQW UHODWHG SDUW\ WUDQVDFWLRQV LH WKH transactions of the Company of material nature with its MISCELLANEOUS promoters, directors/management, subsidiaries/relatives BANK DETAILS: HWF WKDW PD\ KDYH SRWHQWLDO FRQÀLFW ZLWK WKH LQWHUHVWV RI WKH Company at large. 6KDUHKROGHUVKROGLQJVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHGWRQRWLI\ / send the following information to the Registrar and Share Transfer 7KHUHDUHQRWUDQVDFWLRQVZKLFKPD\KDYHSRWHQWLDOFRQÀLFWVZLWKWKH Agent of the Company: interests of the Company at large. Transactions with related parties DUHGLVFORVHGLQQRWHQRRIVWDQGDORQH¿QDQFLDOVWDWHPHQW V RI $Q\FKDQJHLQWKHLUDGGUHVVPDQGDWHEDQNGHWDLOVHWF DQG the Annual Report - Related Party Disclosures. 3DUWLFXODUVRIWKHEDQNDFFRXQWLQZKLFKWKH\ZLVKWKHLUGLYLGHQGWR Non-compliance by the Company, penalties and strictures EHFUHGLWHG LQFDVHWKHVDPHKDVQRWEHHQIXUQLVKHGHDUOLHU DQG imposed on the Company by Stock Exchange or SEBI or any should include the following particulars namely, Bank Name, Branch statutory authority, on any matter related to capital markets, Name, Account Type, Account Number and MICR Code (9 digits). during the last three years. PERMANENT ACCOUNT NUMBER: Nil 7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD KDV PDQGDWHG Details of Establishment of Vigil Mechanism, Whistle Blower the submission of Permanent Account Number (PAN) by every 3ROLF\ DQG DI¿UPDWLRQ WKDW QR SHUVRQQHO KDYH EHHQ GHQLHG participant in securities market. Members holding shares in access to the Audit Committee. HOHFWURQLFIRUPDUHWKHUHIRUHUHTXHVWHGWRVXEPLWWKH3$1WRWKH Depository Participants with whom they are maintaining their demat The Company has implemented Vigil Mechanism and Whistle accounts. Members holding shares in physical form can submit their %ORZHU3ROLF\DQGLWLVKHUHE\DI¿UPHGWKDWQRSHUVRQQHOKDYHEHHQ PAN details to the Company/ Registrar and Share Transfer Agent. denied access to the Audit Committee. NOMINATION FACILITY: Details of Compliance with mandatory requirements and adoption of the non-mandatory requirements of this clause. Shareholders holding shares in physical form and desirous of submitting/changing nomination in respect of their shareholding The status of compliance with discretionary recommendations of the LQ WKH &RPSDQ\ PD\ VXEPLW )RUP 6+ LQ GXSOLFDWH DV SHU Regulation 27 of the SEBI Regulations with Stock Exchanges inter- the provisions of Section 72 of the Companies Act, 2013, to the alia is provided below: Company’s Registrar and Share Transfer Agent. a. 6KDUHKROGHUV¶5LJKWV $VWKHTXDUWHUO\DQGKDOI\HDUO\¿QDQFLDO SHUIRUPDQFHDORQJZLWKVLJQL¿FDQWHYHQWVDUHSXEOLVKHGLQWKH 35 Annual Report 2017-18 CERTIFICATES AND CONFIRMATION CMD/CFO CERTIFICATION To, The Board of Directors, VIDEOCON INDUSTRIES LIMITED I, the Chairman and Managing Director of the Company, certify to the Board that: D :H KDYH UHYLHZHG WKH )LQDQFLDO 6WDWHPHQWV DQG WKH &DVK )ORZ 6WDWHPHQW IRU WKH \HDU HQGHG RQ 0DUFK DQG WR WKH EHVW RI P\ knowledge and belief: L 7KHVHVWDWHPHQWVGRQRWFRQWDLQDQ\PDWHULDOO\XQWUXHVWDWHPHQWRURPLWDQ\PDWHULDOIDFWRUFRQWDLQVWDWHPHQWVWKDWPLJKWEHPLVOHDGLQJ and LL 7KHVHVWDWHPHQWVWRJHWKHUSUHVHQWDWUXHDQGIDLUYLHZRIWKH&RPSDQ\ VDIIDLUVDQGDUHLQFRPSOLDQFHZLWKH[LVWLQJDFFRXQWLQJVWDQGDUGV applicable laws and regulations. b) To the best of my knowledge and belief, no transactions entered into by the Company during the year are fraudulent, illegal or violative of the Company's Code of Conduct. F :HDFFHSWWKHUHVSRQVLELOLW\IRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDOFRQWUROVIRU¿QDQFLDOUHSRUWLQJDQGWKDWZHKDYHHYDOXDWHGWKHHIIHFWLYHQHVV RILQWHUQDOFRQWUROV\VWHPVRIWKH&RPSDQ\GLVFORVLQJWRWKH$XGLWRUVDQGWKH$XGLW&RPPLWWHHWKHGH¿FLHQFLHVLQWKHGHVLJQRURSHUDWLRQRIVXFK LQWHUQDOFRQWUROVLIDQ\DQGWDNHVWHSVRUSURSRVHWRWDNHVWHSVWRUHFWLI\WKHVHGH¿FLHQFLHV d) We have indicated, wherever applicable, to the Auditors and the Audit Committee: L 6LJQL¿FDQWFKDQJHVLQ,QWHUQDO&RQWURORYHU¿QDQFLDOUHSRUWLQJGXULQJWKH\HDU LL 6LJQL¿FDQWFKDQJHVLQ$FFRXQWLQJ3ROLFLHVWKHVDPHKDYHEHHQGLVFORVHGLQWKHQRWHVWRWKH¿QDQFLDOVWDWHPHQW DQG LLL ,QVWDQFHVRIVLJQL¿FDQWIUDXGRIZKLFKZHKDYHEHFRPHDZDUHDQGWKHLQYROYHPHQWWKHUHLQLIDQ\RIWKHPDQDJHPHQWRUDQHPSOR\HH KDYLQJDVLJQL¿FDQWUROHLQWKH&RPSDQ\¶VLQWHUQDOFRQWUROV\VWHPRYHU¿QDQFLDOUHSRUWLQJ For VIDEOCON INDUSTRIES LIMITED CHAIRMAN, MANAGING DIRECTOR & CEO 'DWH -XQH Place : Mumbai COMPLIANCE CERTIFICATE OF THE AUDITORS: $FHUWL¿FDWHIURPWKH6WDWXWRU\$XGLWRUVRIWKH&RPSDQ\FRQ¿UPLQJFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHDVVWLSXODWHGXQGHU&ODXVH(RI 6FKHGXOH9RIWKH/LVWLQJ5HJXODWLRQVLVDWWDFKHGWRWKLVUHSRUW COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE To, The Members of VIDEOCON INDUSTRIES LIMITED :HKDYHH[DPLQHGWKHFRPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHE\9LGHRFRQ,QGXVWULHV/LPLWHGIRUWKH\HDUHQGHGRQ0DUFKDV VWLSXODWHGLQ&KDSWHU,9RI6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQVSXUVXDQWWR WKH/LVWLQJ$JUHHPHQWRIWKHVDLG&RPSDQ\ZLWKVWRFNH[FKDQJHV 7KH&RPSOLDQFHRIFRQGLWLRQVRI&RUSRUDWH*RYHUQDQFHLVDUHVSRQVLELOLW\RIWKH0DQDJHPHQW2XUH[DPLQDWLRQZDVOLPLWHGWRWKHUHYLHZRIWKH procedures and implementations thereof adopted by the Company for ensuring the compliance of conditions of Corporate Governance. It is neither DQDXGLWQRUDQH[SUHVVLRQRIRSLQLRQRQWKH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\ ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVDQGWKHUHSUHVHQWDWLRQVPDGHE\WKH'LUHFWRUVDQG the Management, we certify that the Company has substantially complied with the conditions of Corporate Governance as stipulated in Chapter IV RI6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD /LVWLQJ2EOLJDWLRQVDQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQVSXUVXDQWWRWKH/LVWLQJ$JUHHPHQW RIWKHVDLG&RPSDQ\ZLWKVWRFNH[FKDQJHV+RZHYHUWKH&RPSDQ\KDVGHOD\HGVXEPLVVLRQRI6KDUHKROGLQJSDWWHUQUHVXOWVDQQXDOUHSRUWDQG FHUWDLQ¿OLQJV :HIXUWKHUVWDWHWKDWVXFKFRPSOLDQFHLVQHLWKHUDQDVVXUDQFHWRWKHIXWXUHYLDELOLW\RIWKH&RPSDQ\QRURIWKHHI¿FLHQF\RUHIIHFWLYHQHVVZLWKZKLFK the Management has conducted the affairs of the Company. For M/s. S. Z. Deshmukh & Co. Chartered Accountants (Firm Registration No. 102380W) D. U. Kadam Partner Membership No. 125886 Place : Mumbai 'DWH -XQH DECLARATION The Board has laid down a code of conduct for all the Board Members and Senior Management of the Company, which is posted on the Website of WKH&RPSDQ\7KH%RDUG0HPEHUVDQG6HQLRU0DQDJHPHQWKDYHDI¿UPHGFRPSOLDQFHZLWKWKHFRGHRIFRQGXFW For VIDEOCON INDUSTRIES LIMITED CHAIRMAN, MANAGING DIRECTOR AND CEO Place : Mumbai 'DWH -XQH 36 MANAGEMENT DISCUSSION AND ANALYSIS REPORT The management discussion and analysis report has been included in Advancement in technology and higher competition are driving price adherence to the spirit enunciated in the code of Corporate Governance reductions in Consumer Durables. With the initiative of ‘Make in India’ DSSURYHGE\WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, campaign, many domestic and Chinese manufactures are investing in India to setup their manufacturing plants which would produce more The Management Discussion and Analysis presented in this Annual affordable products. Report focuses on reviewing the performance of the Company. Televisions: CONSUMER ELECTRONICS INDUSTRY OVERVIEW India has the world’s third largest television industry. The consumer durables industry is one of the most dynamic and fastest growing industries in India and is considered to be one of the largest in Smart TVs have been witnessing a healthy growth rate in India. With WKHZRUOG7KH&RPSDQ\H[SHFWWKHFRQVXPHUGXUDEOHVPDUNHWWRUHJLVWHU middle class growing along with higher disposable income and fuelled by a growth of about 8% on back of improvement in overall consumption lower prices as compared to two to three years ago the demand for Smart in domestic market. The rising average dual-household incomes of TVs has risen drastically over the years. Smart TV allows users to install consumers are the primary factor that drives the consumer electronics and DQGUXQDGYDQFHGDSSOLFDWLRQVWKDWDUHEDVHGRQDVSHFL¿FSODWIRUP home appliances market in India. With the recovery from the economic 7KHFRQWULEXWLRQRIVPDUW79VWRRYHUDOOVDOHVKDVJRQHXSWRVLJQL¿FDQWO\ crisis of 2012, consumers have started investing heavily in products RYHU ODVW IHZ \HDUV DQG WKH VKDUH LV H[SHFWHG WR PRYH XS 6PDUW79V like smart consumer electronics and home appliances. The market is market in India registered robust growth in 2017-18 attributed to a sharp mainly driven by an increase in labour costs and product innovation in drop in the prices of the Smart TVs as well as rising penetration of terms of technology, performance, design, and capability. As per the Smart TV vendors. Rise in disposal income levels and growing internet industry estimate, Indian appliances and consumer electronics market penetration in the country contributed to an increase in sales of Smart KDVUHDFKHGDSSUR[LPDWHO\` 2 Trillion in 2017-18. It is estimated that the TVs. Huge investment by video streaming media companies like Hotstar, market will increase at around 8-9.5 per cent CAGR to reach above ` 3 $PD]RQ3ULPHDQG1HWÀL[OHWWRDQLQFUHDVHLQGHPDQGIRU6PDUW79V Trillion in 2021-2022. There is a lot of scope for growth from rural markets ZLWKFRQVXPSWLRQH[SHFWHGWRJURZLQWKHVHDUHDVDVSHQHWUDWLRQRIEUDQG Also with increasing innovation and technological improvements in the increases. FRQVXPHUHOHFWURQLFVLQGXVWU\WKHFRVWRI6PDUW79VLVH[SHFWHGWRVHHD GRZQZDUGWUHQGLQIXWXUHDVZHOO)DFWRULQJWKHVHZHFDQVD\WKDW6PDUW 7KH *RYHUQPHQW¶V IRFXV RQ UXUDO HOHFWUL¿FDWLRQ KRXVLQJ IRU DOO VR DV TVs are well on their way to become one of the preferred mainstream to make affordable housing and power available to all the citizens of SURGXFWV LQ ,QGLD$V IDU DV YLHZLQJ H[SHULHQFH LV FRQFHUQHG PRVW RI ,QGLDDQGIDFLOLWDWHURXQGWKHFORFNDYDLODELOLW\RISRZHUDUHH[SHFWHGWR the Smart TVs whether 4K TV’s or HDR, are available in large screens be key factors for strong growth in the consumer electronics and home IRUPDW RQO\ ZKLFK PDJQL¿HV WKH H[SHULHQFH LPPHQVHO\ +HQFH 6PDUW DSSOLDQFHVPDUNHW:LWKWKHFRQWLQXRXVLQÀRZRIGLVSRVDEOHLQFRPHDQG 79VFHUWDLQO\RIIHUEHWWHUYLHZLQJH[SHULHQFHEXQGOHGZLWKWKHLUÀDJVKLS the advancement of technology, the need for the varied consumer durable WHFKQRORJLHV+RZHYHUWKHYLHZLQJH[SHULHQFHLVRQO\JRWWRGRZLWKWKH goods are increasing. GLVSOD\ WHFKQRORJ\ DQG QRWKLQJ PXFK \HW ZLWK WKH ³6PDUW )HDWXUHV´ RI The other factors which are driving the overall demand in consumer WKH79*URZLQJSHQHWUDWLRQRILQWHUQHWVHUYLFHVDQGH[SDQGLQJLQWHUQHW electronics and home appliances market are growing awareness amongst FRQVXPHUEDVHLVH[SHFWHGWRGULYHWKHPDUNHWRYHUWKHQH[WIHZ\HDUV the customers, affordable pricing, improved standard of living, more In addition, market leaders have been investing in smart TV technology purchasing power, nuclear families, higher disposable incomes, changing in order to gain competitive advantage. The technology transition from OLIHVW\OHVYDOXHIRUPRQH\XSJUDGDWLRQRIH[LVWLQJDSSOLDQFHVZLWKQHZHU internet TVs to smart TVs that provide convergent services is also WHFKQRORJLFDODSSOLDQFHV)XUWKHUUDSLGSUROLIHUDWLRQRIHFRPPHUFHDQG H[SHFWHG WR UHVXOW LQ IDYRXUDEOH PDUNHW FRQGLWLRQV :LWK %(( UDWLQJV RQOLQH UHWDLQLQJ DQG RWKHU UHWDLO PDUNHWLQJ LQLWLDWLYHV VXFK DV H[FKDQJH EHFRPLQJ PDQGDWRU\ IRU )ODW 3DQHO 'LVSOD\ VHJPHQW LW LV H[SHFWHG WR SURJUDP EXQGOHG RIIHUV DWWUDFWLYH GLVFRXQWV IUHHELHV DQG H[WHQGHG EULQJHQHUJ\HI¿FLHQF\LQWRIRFXVIRUWKHWHOHYLVLRQVHWV warranties are also driving the overall demand. The Government of India’s Smart TV could play an important part in the overall Smart city initiative of SROLFLHVDQGUHJXODWRU\IUDPHZRUNVVXFKDVUHOD[DWLRQRIOLFHQVHUXOHVDQG the Government. Being embedded in the government systems, it can be DSSURYDORISHUFHQWIRUHLJQGLUHFWLQYHVWPHQW )', LQPXOWLEUDQGDQG DQLPSRUWDQWHOHPHQWRIWKH,QIRUPDWLRQ &RPPXQLFDWLRQ7HFKQRORJLHV 100 per cent in single-brand retail are some of the major growth drivers for ,&7 79V HTXLSSHG ZLWK WHFKQRORJLFDOO\ DGYDQFHG DQG VPDUW IHDWXUHV the consumer market. The policy initiatives take by Government of India can support the initiative, by enabling users to keep a watch on the streets such as “Make in India” drives the domestic manufacturing and as a result for suspicious activities or to warn people who litter the streets. Smart many manufacturers are planning to build their own manufacturing base in TVs could also download important announcements/videos which could India owing to the availability of low cost labour in the country. be circulated by the municipal and governing bodies of various regions. This sector comprises three segments viz., white goods, brown goods and Refrigerators: consumer electronics/durables. Consumer durables’ is one of the fastest growing industry segments in India: The Indian refrigerators market is categorized into two product types’ i.e. GLUHFWFRROUHIULJHUDWRUVDQGIURVWIUHHUHIULJHUDWRUV)URVWIUHHUHIULJHUDWRUV a. White Goods: Air conditioners, Washing Machines and GR QRW UHTXLUH PDQXDO GHIURVWLQJ DQG RQ WKH FRQWUDU\ LQ GLUHFW FRRO Refrigerators refrigerators manual defrosting is needed. The frost free refrigerator b. Brown Goods: 0L[HU *ULQGHUV 0LFURZDYH RYHQV &RRNLQJ market of India is gaining massive popularity and momentum over UDQJH -XLFHUV ,URQV 7RDVWHUV (OHFWULF IDQV 9DFFXP &OHDQHUV traditional refrigerator models. There is a trend for double door refrigerator 'LVKZDVKHUV:DWHU3XUL¿HUV'U\HUVHWF ZKLFK VWDUWV IURP OLWHU FDSDFLW\ WR PD[LPXP OLWHUV 'LUHFW FRRO refrigerators dominate in the Indian market whereas frost free refrigerators c. Consumer Electronics: Television, Computers, Mobile Phones, are becoming popular among urban households. /DSWRSV *DPLQJ &RQVROHV $XGLR DQG 9LGHR V\VWHPV +RPH systems etc., Energy star rating, Rising household income, Improving living standards, 5DSLGXUEDQL]DWLRQ,QFUHDVLQJQXPEHURIQXFOHDUIDPLOLHV/DUJHXQWDSSHG 37 Annual Report 2017-18 advanced features and new designs. With the rising per capita income Some of the many advanced features of Videocon’s high-end TVs include: OHYHOVGHFOLQLQJSULFHVDQGFRQVXPHU¿QDQFHWKHUHIULJHUDWRUPDUNHWLV (\HFRQLT(QJLQH 7KLVWHFKQRORJ\SURGXFHVYDVWO\VXSHULRUYLVXDOV H[SHFWHGWRJURZLQIXWXUH\HDUV7KHXWLOLW\DQGWKHQHHGRIUHIULJHUDWRULV with 100% colours visible to the human eye, making skin tones felt 365 days in a year, and hence has become an indispensable item of beautiful and radiant. The primary colours - red, blue and green are every household. Moreover, due to the hot and humid weather conditions HQKDQFHGHTXDOO\WRVKRZFDVHEULJKWHUULFKHUDQGGHHSHUSLFWXUHV in the country, the necessity of the product has increased manifolds. ZKLFKFDQRWKHUZLVHEHGLI¿FXOWWRGHOLYHU Washing Machines: /LTXLG /XPLQRXV 'LVSOD\ 7KLV WHFKQRORJ\ HQDEOHV WKH79 VFUHHQ *URZLQJ GLVSRVDEOH LQFRPH DQG HDV\ ¿QDQFLQJ RSWLRQV KDYH OHG WR to reproduce up to 95% of the visualization capability of the human VKRUWHQHGUHSODFHPHQWF\FOHVZKHUHDVULVLQJLQÀXHQFHRIPRGHUQOLIHVW\OH H\HZKHUHDVFRQYHQWLRQDO/('VFUHHQVDUHDEOHWRGHOLYHURQO\XS has perceived products such washing machines as utility items rather than to 72% in this regard. This gives a sensation of real and natural like OX[XU\JRRGV3HQHWUDWLRQRIZDVKLQJPDFKLQHVLVH[SHFWHGWRLQFUHDVH colors. in the coming years with sales from rural India. Demand for washing . 8OWUD +' 6XFK /(' VFUHHQV XVH XS WR PLOOLRQ SL[HOV IRU machines goes up during monsoons and there is a greater need among giving best in class display with crystal clear picture. urban and metro consumers to upgrade their machines during coming 4. Windows TV: It has Microsoft Windows software in it so that it can seasons. be used as a personal computer (PC) if the necessary peripherals In the current scenario washing machines are no more a privilege. It (input devices) are connected. has become an essential item in every house making the practice of 'LJLWDO'LUHFW%URDGFDVW ''% 7KHUHLVQRQHHGIRUDQ\VHWWRSER[ washing clothes more intelligent, personalised and time saving. Also, the as it is integrated into the TV, with satellite signals being received washing machines now-a-days are given an aesthetic touch that makes directly by the television. WKHPORRNVW\OLVKWUHQG\DQGXVHUIULHQGO\,WKDVFRQWULEXWHGVLJQL¿FDQWO\ 6. Smart TV: It has android operating system running so that the user to automate household chores. The dependence on technology has can also do various other things such as browse the internet and increased considerably during the years. Thought process of people in use their favourite android apps on their TV. direction of having a better lifestyle is facilitating trade and commerce. Its demand has been increasing in India due to increasing availability of new 7. Wireless display Connectivity: Technologies such as Screen innovative models in the market and increasing PPP of the Indian middle Mirroring, E-Share allow mirroring of mobile screen displays of FODVVIDPLOLHV7KHPDUNHWLVÀRRGHGZLWKQXPHURXVOHDGLQJDSSOLDQFHV the TV without use of HDMI or VGA cables.These features are brands presenting a huge variety of models across fully automatic top VSHFL¿FDOO\GHVLJQHGIRU6PDUW79 loading, fully automatic front loading and semi-automatic category. New 8. Star rated TV: This feature has been introduced as a “Go Green” technologies include Smart features washing machines along with the initiative for power saving. It is also in compliance with BEE norms. reduction in water usage. ,Q%XLOW:L)L 0DNHVWKH79PRUHLQWHUDFWLYHWKDQDQLGLRWER[E\ The most pertinent trend is towards ‘premiumization’, i.e., a shift towards allowing user to connect with high speed internet wirelessly. more premium offerings. 9LGHRFRQ KDV LQWURGXFHG D PDMHVWLF ´ 8+' 79 ± WKH ELJJHVW Air Conditioner: 79LQRXUUDQJH:LWKRXU ´8+'79FXVWRPHUVFDQH[SHULHQFH theatrical ambience in the convenience of their homes. The market of air conditioners in India has been on a steady growth ever VLQFHDSDUWIURPFHUWDLQH[FHSWLRQV7KHSHUFHSWLRQRISHRSOHWRZDUGVWKH Refrigerators: category of this product has witnessed a paradigm shift over the years from Besides magical synthesis of design and performance, your refrigerators DOX[XU\SURGXFWWREHFRPLQJDQHFHVVLW\LQKRWKXPLGZHDWKHUFRQGLWLRQV are compact outside and roomy inside. Entirely new range of High of India. High income growth and rising demand for split ACs are the key (I¿FLHQF\ 7LWDQLXP 6HULHV )) UHIULJHUDWRUV KDYLQJ FDSDFLW\ / / growth drivers. High summer temperatures in the North and high humidity / ZDV ODXQFKHG SUHYLRXVO\ ZLWK 1HZ /RRNV DV ,W LV QRW MXVWD levels in the west and south are driving the growth of Air Conditioners )UHH]HU EXW LW LV D 'HHS )UHH]HU ZLWK XQPDWFKHG FRROLQJ HI¿FLHQF\ RI in the country. Owing to BEE guidelines and power savings, consumers -30’C. Moving forward we are working on Inverter Refrigerators to be at KDYHGHYHORSHGDPDMRUSUHIHUHQFHIRUHQHUJ\HI¿FLHQWPRGHOVWRZDUGV SDU ZLWK WKH HQHUJ\ JXLGHOLQHV VHW E\ WKH %XUHDX RI (QHUJ\ (I¿FLHQF\ 5 Star rating and Inverter ACs. BEE’s star labelling norms have become This will result in considerable power savings. Videocon’s refrigerators too more stringent with its introduction of ISEER rating according to which a 5 are designed keeping the Indian consumer’s needs and choices in mind. star Model in 2017-18 would be a 3 star model in 2018-19. $SDUWIURPWKHKLJKTXDOLW\LQGHVLJQDQGPDQXIDFWXULQJWKH\DOVRFDUU\ the signs of innovativeness that distinguish the company’s other products. Increasing demand by the residential sector owing to reduction in prices These include: has instigated the manufacturers to aim for a higher market share in the highly potential market of air conditioners in India. The demand from the 2QH RI ,QGLD¶V PRVW HQHUJ\ (I¿FLHQW FHUWL¿HG E\ %(( %XUHDX RI commercial segment is catching up fast with the increasing number of (QHUJ\(I¿FLHQF\ SUHYLRXVO\ FRPPHUFLDO RI¿FHV VWRUHV DQG EXVLQHVV DSDUWPHQWV EHLQJ VHW XS DV 2. Titanium Series “The future of Refrigerators” with interactive touch compared to the demand from the residential segment. digital control Panel. COMPANY PROFILE OF VIDEOCON 3. Varied power rating to suit your electricity consumption tolerance, The company is engaged in the manufacture and wholesale and retail with up to 5 star rating in direct cool category. trade of consumer electronics and home appliances items and is a part 4. Corner Cooling: Enhances cooling to keep the temperature RIDODUJHFRQJORPHUDWHZLWKGLYHUVL¿HGEXVLQHVVLQWHUHVWV,WVVHJPHQWV consistent within the compartment, even at the corners. LQFOXGH &RQVXPHU (OHFWURQLFV DQG +RPH $SSOLDQFHV &UXGH 2LO DQG )UHH]HU/(' 8QLTXH/('DUUDQJHPHQWWROLJKWHQXSWKHIUHH]HUDQG 1DWXUDO*DV 7HOHFRPPXQLFDWLRQV 3RZHUDQG2WKHUV other compartments better. The Company engages in the manufacture, sales and service of the 6. Highly durable compressor with a 10 year warranty. following types of products: 7. Humidity Control that can be customized to the type of material that you intend to store. Television 3KRWRVLV)UHVK 2SWLFVWHFKQRORJ\WKDWKHOSVWRNHHSWKHIUXLWVDQG vegetables breathing inside the refrigerator. Mobile Refrigerators Phones $FWLYHDLUÀRZ .HHSVJRRGDLUÀRZZLWKLQWKHFRPSDUWPHQWWRNHHS the food fresh. VIL Product Range 10. Wine rack: These help to keep the beverage bottles conveniently. &RVPHWLFVER[ZKHUHPDNHXSLWHPVFDQEHNHSWFRROWRSUHYHQW Small Home Washing Appliances Machine spoilage in summer. 12. A separate large bottle zone kept at a greater height for convenience. Air Conditioners 13. Cool booster pack with a lower melting point than ice, which keeps items in freezer from spoiling in case of power outage. 38 14. Toughened glass which can take the load of heavier utensils easily, 1. Microwave ovens have a large number of auto-cook menus and crafted to also avoid spillage. combi functions for easy cooking. 15. Chiller tray with bottle storage for beverages best served chilled. 2. They also have such features as digital jog wheels and lemon clean function. 3&09&0 ¿QLVK GRRUV ZLWK KLJK JORVV DQG GHVLJQHU SDWWHUQV IRU greater aesthetic appeal. 3. Induction cooktops have anti-magnetic glass plates and vessel auto 17. The high end Side by side models also come with water dispenser detect functions. LQ6WDLQOHVVVWHHODQG3&0¿QLVK $LUIU\HUVXQGHUWKHVXEEUDQG2[\)U\HUUHGXFHRLOXVHLQFRRNLQJ Washing Machines: fried snacks. Videocon was the 1st company in India to initiate the concept of washing 5. Electric kettles have stainless steel bodies and 360 degree rotation for ease of use. PDFKLQHV /DXQFKHG :DVKLQJ 0DFKLQH LQ WKH \HDU LQ 6HPL $XWRPDWLF&DWHJRU\7KHUHDIWHULWKDVH[SDQGHGLWVSURGXFWSRUWIROLRWR 6. Pop toasters toast bread and have crumb trays, defrost function and )XOO\$XWRPDWLF7RSORDGLQJ DQG )XOO\$XWRPDWLF )URQW ORDGLQJ LQ VL]HV skid resistant feet. ranging from 5.5 Kg to 10Kg.To mention a few namely, 7. Rice cookers are non-stick coated and have attractive designs. 1. Digi one with Touch screen is the most modern Washing Machine These cook rice. which is Tech savvy and with inbuilt heater for sterilized wash, is 8. Sandwich makers have detachable plates and skid resistant feet. XQPDWFKHGLQPDUNHWIRULWVXQLTXHIHDWXUHV They help make sandwiches. 'LJL=DUDVHULHVRI)XOO\$XWRPDWLF7RS/RDGLQJPDFKLQHVZKLFKDUH :DWHUKHDWHUVKDYHKLJKHQHUJ\HI¿FLHQF\GHFRUDWLYHGHVLJQVDQG VOHHNDQGZLWKPRGHUQWHFKQRORJ\OLNH89 8OWUDYLROHW VWHULOL]DWLRQ robust metal bodies. for Hygiene wash, hot air dry technology in top load washing machine which continue to take laundry cleaning and hygiene to 10. Irons have adjustable temperature knobs, non-stick plates and New level. optional steam functions. 3. With addition of Alpha One series of Washing Machine introduced Mobile Phones: UHFHQWO\ ZKLFK H[WHQGV WKH OHJDF\ RI 9,5$7 VHULHV LQ 6HPL 7KH UDQJH RI 7DEOHWV 6PDUWSKRQH DUH D SHUIHFW FRPELQDWLRQ RI Automatic category with new colour variants, improved features and WHFKQRORJ\ VW\OH ZKLFK JLYHV \RX D KRVW RI WHFKQRORJLFDOO\ DGYDQFHG big capacity. features and access to thousands of applications that runs on super fast 'LJL*DUFLDVHULHVRI)XOO\$XWRPDWLF:DVKLQJ0DFKLQHVZLWKYLEUDQW processors, latest Android technology and much more. That’s not all with colours and aesthetically superior looks, water saver function, Videocon Mobiles, you will never miss on the fun with powerful battery multiple wash selection option, lesser water consumption and higher VXSSRUW GXHWRWKHLUOLJKWZHLJKWWKH\ZLOOEHHDV\RQ\RXUKDQGVZLWK performance continues to be a popular series. HIIRUWOHVV H[SHULHQFH 39 Annual Report 2017-18 -9RI9LGHRFRQ(QHUJ\%UD]LO/LPLWHG DVXEVLGLDU\RI9++/ Albian/Cenomanian age and Discovery Assessment Plan(PAD) DQG%35/9HQWXUHV%9 ³DZKROO\RZQHGVXEVLGLDU\RI%35/,QWHUQDWLRQDO was approved by ANP to further appraisal. All the other activities, BV, Netherlands). LQFOXGLQJ * * VWXGLHV DUH JRLQJ RQ DV VFKHGXOHG LQ WKH ODWHVW Appraisal Plan approved by ANP. Multi-client 3D seismic surveys, 2YHU WKH \HDUV 9LGHRFRQ KDV DOVR DFTXLUHG WHFKQLFDO FDSDELOLWLHV IRU totalling 2158 Km2, planned to cover blocks 663 and 760 in POT- prospecting and playing an effective supporting role for development of FRQFHVVLRQ7KHVXUYH\VE\0V3*6VWDUWHGLQWKHODVWTXDUWHU its oil and gas assets. of 2017 and completed by March 2018. Interpretation of the newly Domestic Asset DFTXLUHGVHLVPLF'GDWDLVH[SHFWHGWRKHOS¿QDOL]HWKH¿UPZHOO th Videocon has a participating interest of 25% in the Ravva block. Cairn location to be drilled in the 4 TXDUWHURI ,QGLD /WG LV WKH RSHUDWRU RI WKH EORFN 7KH 5DYYD EORFN LV D PDWXUH Assets in Indonesia: shallow water asset (depth 5 to 40 meters) located in Krishna Godavari The Nunukan block in Indonesia is located in the Tarakan Basin on the Basin, off the Andhra Pradesh coast. The block was discovered in 1987 FRQWLQHQWDOVKHOIRIQRUWKHDVW.DOLPDQWDQZKLFKLVLQWKHSUROL¿FRLO JDV by ONGC and the block began production in 1993. Government of India SURGXFLQJ .XWHL %DVLQ +\GURFDUERQ H[SORUDWLRQ DFWLYLWLHV LQ 1XQXNDQ *2, PDGHWKH5DYYD¿HOG DORQJZLWKVHYHUDORWKHU¿HOGV DYDLODEOHIRU area were concentrated mainly onshore before the end of 19th century. foreign investment in 1994 in an effort to increase the country’s oil and gas 7DUDNDQ%DVLQLVDSURGXFLQJ¿HOGKDYLQJPRUHWKDQGLVFRYHULHVZKLFK production and also to bring in best of class technologies. The production went into production. PT Pertamina (PHENC),the national oil company of sharing contract for the block was signed in October 1994 for a period ,QGRQHVLDLVWKHRSHUDWRU&RQVHTXHQWWR-93DUWQHU370HGFRH[LWLQJ RI\HDUVDQGLVYDOLGWLOO2FWREHU &DLUQ,QGLD/WGLVWKHRSHUDWRU from the PSC, Videocon Indonesia Nunukan Inc (VINI) and Pertamina of the block. Apart from Videocon with a 25% PI, the other members (Operator) the consenting partners picked up it’s 40% participating interest RI WKH FRQVRUWLXP DUH 21*& 9HGDQWD /WG 5DYYD 2LO VKDUHRQSURUDWHEDVLVZLWK%35/DEVWDLQLQJ6..0LJDVFRQYH\HGLWV 6LJQDSRUH 3WH/WG formal approval on September 18, 2015 for the same, resulting in increase Overseas Assets of VINI’s participating interest from12.50% to 23.00% without cost. In Nunukan Block successful oil and gas discoveries are announced in Badik Videocon through its subsidiaries has participating interest in 8 overseas )LHOG LQ WKUHH ZHOOV DQG WKH :HVW %DGLN )LHOG LQ RQH ZHOO 6XEVHTXHQW RLO JDVEORFNVRIZKLFKDUHLQ%UD]LODQGRQHLQ,QGRQHVLD2YHUWKH GULOOLQJRI3DUDQJ:HOOKDVGLVFRYHUHG2LO *DVLQ1XQXNDQ%ORFNKDV \HDUV9LGHRFRQKDVDOVRDFTXLUHGWHFKQLFDOFDSDELOLWLHVIRUSURVSHFWLQJ been ranked as one of the top ten discoveries of the world for the year and playing an effective supporting role for development of its oil and 2017. Government has approved Plan of Development (POD-1) of Badik- gas assets. Videocon has partnered with leading international oil and West Badik Discoveries. The integrated development concept envisages 3 gas companies like BP, Total and Anadarko, one of the world’s largest SODWIRUPVHDFKLQ%DGLN:HVW%DGLNDQG3DUDQJ)LHOGVZKLOHSODWIRUPV LQGHSHQGHQW( 3FRPSDQLHVLQ&DPSRV%DVLQLQ%UD]LO373HUWDPLQDWKH DUHSODQQHGIRU.HULV)LHOG.HULVSURVSHFWLVSUR[LPDOO\ORFDWHGRQWKH National Oil Company of Indonesia while it has partnered with Petrobras ÀDQNRI%XQ\XVWUXFWXUHZKLFKLVDSURGXFLQJ¿HOGDQGVKDUHWKHVDPH a semi-public Brazilian multinational corporation in the petroleum industry trend with Badik – West Badik – Parang structures. LQWKH6HUJLSH%DVLQFRQWDLQLQJWKH%DUUD)DUIDQ &XPEH2LODQG*DV OPPORTUNITIES AND THREATS 'LVFRYHULHV7KHVH EORFNV DUH HVWLPDWHG WR KROG VLJQL¿FDQW RLO DQG JDV reserves and major discoveries have been announced. Opportunities: Consumer Electronics & Home Appliances Sector Assets in Brazil :LWKULVHLQLQFRPHOHYHORIWKHFXVWRPHUVDQGDYDLODELOLW\RIHDV\ i) BM SEAL-11 Concession ¿QDQFH WKH GLVFUHWLRQDU\ VSHQGLQJ KDV EHFRPH LPSRUWDQW $V D UHVXOWWKHGXUDEOHJRRGVZKLFKZHUHHDUOLHUFRQVLGHUHGWREHOX[XU\ 7KH %06($/ Concession comprises of four (4) ultra-deep are now being considered as a necessity. ZDWHU EORFNV YL] 6($/0 6($/0 6($/0 DQG 6($/0 LQQRUWKHDVWHUQ%UD]LOORFDWHGLQWKH6HUJLSH$ODJRDV ,QWHUQHWVXEVFULEHUVLQ,QGLDKDYHLQFUHDVHGVLJQL¿FDQWO\LQODVWIHZ basin. Petrobrasis the operator of the concession. The group \HDUVDQGLWLVH[SHFWHGWRJURZIXUWKHU7KLVFRXOGEHDGULYLQJIDFWRU for innovation in the Smart TVs and other consumer durables. KROGV 3, LQ WKH FRQFHVVLRQ YLD ,%9 %UD]LO 3HWUROHR /LPLWDGD D-9&RPSDQ\ZLWK%KDUDW3HWUR5HVRXUFHV/WG %35/ ,QFUHDVHLQWKHDZDUHQHVVDERXW6PDUW79VLVDVLJQL¿FDQWIDFWRU D ZKROO\ RZQHG VXEVLGLDU\ RI %KDUDW 3HWUROHXP &RUSRUDWLRQ /WG which could be driving the growth in sales of Smart TVs in India. %3&/ ,Q%06($/FRQFHVVLRQ)LYH$SSUDLVDO3ODQVYL]%DUUD 5LVHLQZRUNLQJDJHSRSXODWLRQLVH[SHFWHGWRVWLPXODWHGHPDQG )DUIDQ&XPEH3DSDQJXDQG3RFR9HUGHVWUXFWXUHVZLWKYDULRXV WLPHOLQHVKDYHZLWQHVVHGVLJQL¿FDQWK\GURFDUERQGLVFRYHULHVZKLFK *URZLQJ QXPEHU RI +LJK 1HWZRUWK ,QGLYLGXDOV DQG ZRPHQ LQ are all in different stages of appraisal/ evaluation phases along with workforce is boosting demand for high end consumer electronics QHLJKERXULQJ-RLQW9HQWXUHUVLQDXQLWL]DWLRQSURSRVDODQGWKHVDPH and home appliances. DUHKHDGLQJWRZDUGVFRPPHUFLDOL]DWLRQ-9KDVDSSURYHG([WHQGHG 5DSLGXUEDQL]DWLRQLVKHOSLQJLQWKHJURZWKRIFRQVXPHUHOHFWURQLFV :HOO 7HVW (:7 LQ WKH )DUIDQ )LHOG $OO DFWLYLWLHV XQGHUO\LQJ WKH and home appliances industry. There has been a paradigm shift of EWT are proceeding as per schedule, including the Environmental the Indian population in terms of rural-urban divide. The aspiration of Clearance by IBAMA. higher income, higher standard of living have drawn more and more ii) BMC-30 Concession people from villages to settle in towns and cities. This transition has The BMC-30 Concession in the Campos Basin is located offshore led to an increase in the demand for goods. WR WKH5LR GH -DQHLUR DQG (VSLULWR 6DQWR 6WDWHV :DKRR LV D 7KH JURZLQJ XVH RI FUHGLW DQG GHELW FDUG DQG HDV\ DYDLODELOLW\ RI major oil discovery made in this concession. Anadarko, one of credit has resulted in the increase in spending inter-alia including on WKH ZRUOG¶V ODUJHVW LQGHSHQGHQW ( 3 FRPSDQ\ LV WKH RSHUDWRU RI purchases of consumer electronics and home appliances thereby this Concession. Meanwhile, as a part of Anadarko’s worldwide fuelling the demand in the durables sector. corporate strategy, conveyed it’s decision to resign as operator and 7KH JURZWK RI PHGLXPV VXFK DV HFRPPHUFH DQG PFRPPHUFH H[LW%0&RQ0DUFK7KHUHPDLQLQJSDUWQHUV%37RWDO has provided retailers to stay in touch with consumers via various DQG,%9KDYHFRQVHQWHGWRFRQWLQXHLQWKH-97KH-93DUWLHVKDYH mediums and thus increase on their sales by constant promotion approved BP’s nomination to succeed Anadarko as Operator of the BM-C-30 Concession. RISURGXFWV)XUWKHUWKHLQFHQWLYHVVXFKDVFDVKEDFNGLVFRXQWV freebies offered through e-commerce has huge positive impact The group has 12.50% Participating Interest (PI) in the concession on sales of consumer electronics and home appliances and the ZKLFK LV KHOG WKURXJK ,%9 %UDVLO 3HWUROHR /LPLWDGD D -9 GHPDQGLVIXUWKHUH[SHFWHGWRERRVWRYHUWKH\HDUV &RPSDQ\ZLWK%35/ 7KHUDSLGJURZWKRISRSXODWLRQDIIRUGDEOHKRXVLQJVRSSRUWXQLWLHV iii) BM-POT-16 Potiguar Basin Concession in the semi-urban and urban areas have led to growth of nuclear Videocon has participating interest in two blocks in Potiguar Basin families. This has pushed the demand for consumer electronics and Concession. Potiguar Concession Contract POT-M-16 was signed home appliances. RQ-DQXDU\LQWKH6HYHQWK5RXQGRI%LGGLQJFRPSULVLQJ 7KH JURZLQJ QXPEHU LQ GXDO LQFRPH IDPLOLHV ERWK KXVEDQG DQG of Blocks POT-M-663, POT-M-760 and covers an area of 1,535 wife earning) has given greater purchasing power and willingness VTNP3HWUREUDVLVWKH2SHUDWRUZLWK7KHJURXSKDVD WRVSHQGWRWKHPZKLFKKDVSXVKHGIDPLO\¶VIRFXVWRZDUGVOX[XU\ participating interest in the Concession, which is held through VHPLOX[XU\ SURGXFWV UHVXOWLQJ LQWR KLJKHU GHPDQG IRU FRQVXPHU ,%9%UDVLO3HWUROHR/WGDD -9&RPSDQ\ZLWK%35/:HOO electronics and home appliances. Ararauna, was drilled which discovered thin oil bearing sands in 40 :LWKWKHGHYHORSPHQWRIWKHFRPPXQLFDWLRQFKDQQHODQGWKHULVH 5LVLQJ LQSXW SULFHV VXFK DV WKH VHOOLQJ JHQHUDO DGPLQLVWUDWLYH of Information, Communication and Technology Industry, a rise in H[SHQVHDORQJZLWKWKHFRVWRIJRRGVVROGLVGLI¿FXOWWRFRQWURODQG media across the world is seen. Number of people with internet WKXVDUHGXFWLRQLQSUR¿WPDUJLQLVVHHQ'HVSLWHWKHIDFWWKDWWKH access has increased drastically and it has thus created a new consumer products companies in most cases are able to pass on opportunity for companies to position/market their products in a the cost to the consumers but the same is not likely seen during EHWWHUZD\XVLQJLPSURYHGDQGPRUHHI¿FLHQWPDUNHWLQJFKDQQHOV WKHGRZQWXUQZKHQDODJHIIHFWRIIHZTXDUWHUVLVVHHQZKHQWKH Social media too is playing vital role in shaping the position of the earnings of the companies gets pressurized. product. 7KHVH GD\V VHWWLQJ XS D PDQXIDFWXULQJ IDFLOLW\ RU H[SDQGLQJ WKH &RQWLQXRXV 5 ' DQG ,QQRYDWLRQ KDV UHVXOWHG LQ GHYHORSPHQW RI product line is very capital intensive. different products and services and thus can be a driver for improved sales and growth for the company. INTERNAL CONTROL SYSTEMS AND ACCURACY Internal control is all of the policies and procedures management uses to 5HFHQW DQG XSFRPLQJ SURGXFWV LQ WKH ,QGLDQ PDUNHW UHLWHUDWH WKH emphasis of product innovation and development to lead the way achieve the following goals. in future. The companies are increasing their focus on product 3URPRWHHI¿FLHQWDQGHIIHFWLYHRSHUDWLRQV,QWHUQDOFRQWUROVSURYLGH design and ensuring that consumers get varied features to create a DQ HQYLURQPHQW LQ ZKLFK PDQDJHUV DQG VWDII FDQ PD[LPL]H WKH differentiation in the market and create an impact. HI¿FLHQF\DQGHIIHFWLYHQHVVRIWKHLURSHUDWLRQV Threats: Consumer Electronics & Home Appliances Sector 6DIHJXDUG DVVHWV ZHOO GHVLJQHG LQWHUQDO FRQWUROV SURWHFW DVVHWV 'XH WR WKH KLJK PDUNHWLQJ VSHQGV RI PXOWLQDWLRQDO FRPSDQLHV from accidental loss or loss from fraud. (MNCs) and new brands entering in India, the company faces the (QVXUHWKHUHOLDELOLW\DQGLQWHJULW\RI¿QDQFLDOLQIRUPDWLRQ,QWHUQDO threat of a preference developing among consumers for foreign controls ensure that management has accurate, timely and complete brands. The Company intend to mitigate this threat via appropriate information, including accounting records, in order to plan, monitor corporate marketing communication stressing the high pedigree of and report business operations. WKHFRPSDQ\DQGLWVFRPPLWPHQWWRLQQRYDWLRQDQGTXDOLW\ (QVXUHFRPSOLDQFH,QWHUQDOFRQWUROVKHOSWRHQVXUHWKDWFRPSDQ\ 'XHWRWKHSOHWKRUDRIGLVWULEXWRUEUDQGVDQGGRPHVWLFEUDQGVWKDW is in compliance with the many federal, state and local laws and specialise in import and rebranding, the consumer has a large regulations affecting the operations of our business. number of brands to choose from at the low cost end of the price spectrum. Price sensitivity may lead many consumers to overcome $FFRPSOLVKPHQWRIJRDOVDQGREMHFWLYHV,QWHUQDOFRQWUROVV\VWHP their risk aversion. This threat will have to be countered with provide a mechanism for management to monitor the achievement DSSURSULDWHPDUNHWLQJFRPPXQLFDWLRQDERXWWKHGLIIHUHQFHLQTXDOLW\ of operational goals and objectives. of the company’s products vis-à-vis such competitors and through Internal Control Activities and Best Practices highlighting the service reputation of the Company. Internal control activities are the policies and procedures as well as the 7KH ULVH RI PRGHUQ WUDGH UHWDLO FKDLQV RI YDULRXV KXHV OHDGV WR daily activities that occur within an internal control system. A good internal the risk of concentration of the company’s sales to a few large control system should include the control activities listed below. These customers. This is a threat to the margins of the company. It can DFWLYLWLHVJHQHUDOO\¿WLQWRWZRW\SHVRIDFWLYLWLHV be countered by enhancing the pull factors that drive sales through brand building measures at the corporate level. 1. Preventive: Preventive control activities aim to deter the instance of errors or fraud. Preventive activities include thorough documentation Opportunities: Oil and Gas Sector and authorization practices. Preventive control activities prevent 6FRSH WR LGHQWLI\ DGGLWLRQDO RLO DQG JDV EORFNV GRPHVWLFDOO\ DQG XQGHVLUDEOH ³DFWLYLWLHV´ IURP KDSSHQLQJ WKXV UHTXLUH ZHOO WKRXJKW internationally. RXWSURFHVVHVDQGULVNLGHQWL¿FDWLRQ $GGLWLRQDO H[SORUDWLRQ RYHU DQG DERYH SURSRVHG GHYHORSPHQW LQ 2. Detective: Detective control activities identify undesirable Brazil and Indonesia to further augment petroleum reserve basis. “occurrences” after the fact. The most obvious detective control activity is reconciliation. 7KHUHDUHRSSRUWXQLWLHVIRUWKHRLODQGJDVSURGXFHUVWRHQJDJHLQ DOWHUQDWLYH HQHUJ\ WHFKQLTXHV E\ LPSOHPHQWLQJ DQ HIIHFWLYH SODQ With a good internal control system in place, other considerations to keep and to seek alternative method. These include solar, wind, and in mind include: hydrogen. This may reduce the risk of decline in oil production Regularly communicate updates and reminders of policies and procedures Threats: Oil and Gas Sector to staff through e-mails, staff meetings and other communication methods. 7KHUHLVKXJHVXSSO\DQGGHPDQGWKUHDW ,QUHFHQW\HDUVWKHJOREDO 3HULRGLFDOO\ DVVHVV ULVNV DQG WKH OHYHO RI LQWHUQDO FRQWURO UHTXLUHG WR PDUNHWKDVIHOWWKHWLJKWQHVVLQRLOVXSSO\$VSURMHFWVUHTXLUHKLJK protect organization assets and records related to those risks. Document FDSLWDOLQYHVWPHQWVWKH\KDYHGLI¿FXOW\UHJDLQLQJHTXLOLEULXPRQFH the process for review, including when it will take place. WKH SULFHV VWDUW ÀXFWXDWLQJ 7KLV XQVWHDGLQHVV FDXVHV RLO SULFH Management is responsible for making sure that all staff are familiar with volatility. To calm the market and reduce this risk, OPEC and allied company policies and changes in those policies. nations started to make output cuts. Majority of the 21 countries WKDWKDYHHQWHUHGWKHDJUHHPHQWKDYHVLJQL¿FDQWO\FRPSOLHGWKHLU SEGMENT-WISE PERFORMANCE cutback targets. This has helped to revive crude prices, effectively The segment-wise turnover on consolidated basis is as under: starting to diminish this looming threat. However, there is no assurance that OPEC countries continue to comply with cutback (` in Million) targets. 12 Months 15 months 5HJXODWRU\ 7KUHDW $Q\ SROLF\ FKDQJH GXH WR FKDQJH LQ YRODWLOH Segment ended on Period ended on SROLWLFDOVLWXDWLRQFRXOGOHDGWRGLVUXSWLRQLQRLOH[WUDFWLRQDQGFDXVH March 31, 2018 March 31, 2017 higher costs of production or lessen revenue. Mitigating this threat Consumer Electronics and 23,222.12 116,234.86 is no easy task and is largely out of the hands of companies in this Home Appliances industry. Crude Oil and Natural Gas 5,275.65 6,204.97 7KHUHLVQRDVVXUDQFHRIVXFFHVVLQWKHGLVFRYHULHVDVWKHUHLVKLJK GHJUHHRIULVNLQH[SORUDWLRQDQGSURGXFWLRQRIRLODQGJDV Telecommunications 1,577.82 8,846.85 3ULFLQJRIRLODQGJDVLVVXEMHFWWRYDULDWLRQDQGGHSHQGVRQQXPEHU Others - 337.79 RIH[WHUQDOIDFWRUV Total 30,075.59 131,624.47 RISK & CONCERNS DISCUSSION ON FINANCIAL PERFORMANCE Risks relating to Consumer Electronics & Home Appliances Comparative performance of the Company on Standalone Basis is set Business: out hereunder: ,QWHUQDWLRQDO PDQXIDFWXUHV DUH QRZ SDUWQHULQJ ZLWK HUHWDLOHUV WR promote sales and increase penetration in the Indian market. 41 Annual Report 2017-18 Fixed Assets: Tax Expenses The Net block of the Company including Capital Work in progress and 7D[([SHQVHV LQFOXGHV 'HIHUUHG 7D[)RU WKH SHULRG HQGHG 0DUFK Other intangible Assets as on March 31, 2018 was ` 61,085.13 Million WKH WD[ H[SHQVHV DPRXQWHG WR ` (5,761.18) Million as against ` and against the net block including Capital Work in progress and Other (4,335.30) Million for the 15 months period ended March 31, 2017. ` intangible for the period ended on March 31, 2017 was 73,957.60 Million. 1HW3UR¿W/RVV Income: Net loss for the year ended March 31, 2018, is ` 52,640.37 Million as Revenue from Operations against net loss of ` 20,800.17 Million for the 15 months period ended March 31, 2017. During the year ended March 31, 2018 the Company achieved gross Revenue from Operations of ` 28,398.61 Million as against ` 122,524.90 MATERIAL DEVELOPMENTS ON HUMAN RESOURCE Million for the 15 months period ended March 31, 2017. The Human Resource function of your Company plays a critical role Other Income in realizing business objectives by leading organizational change and effectively mobilizing talent to sustain the organization’s competitive age. Other income for the year ended March 31, 2018 amounted to ` 5,840.46 Million as against ` 5,263.61 Million for the 15 months period ended The Company believes in building performance driven organization March 31, 2017. Other income comprises of income from investments and characterized by performance, pride and happiness. The Company FRQGXFWV HPSOR\HH HQJDJHPHQW VXUYH\V WKURXJK H[SHUW DJHQFLHV WR VHFXULWLHVGLYLVLRQSUR¿WRQVDOHRI¿[HGDVVHWVLQVXUDQFHFODLPUHFHLYHG identify the areas to improve upon for building a motivated and productive ([FKDQJHUDWHÀXFWXDWLRQLQWHUHVWDQGRWKHUQRQRSHUDWLQJLQFRPH workforce. Expenditure 7KH WRWDO PDQSRZHU VWUHQJWK RI WKH &RPSDQ\ IRU WKH ¿QDQFLDO SHULRG Cost of Goods Consumed/Sold ended March 31, 2018, is around 2,600 During the year ended March 31, 2018 Cost of Goods Consumed/ Sold Industrial relations remained cordial during the period under review. ` ` stood at 35,292.07 Million as against 87,551.69 Million for the 15 OUTLOOK months period ended March 31, 2017. The medium to long term, the view is positive, giving the rise in affordability Production and Exploration Expenses for Oil and Gas levels (combination of increasing disposable incomes and the trend of 'XULQJ WKH \HDU HQGHG 0DUFK WKH SURGXFWLRQ DQG H[SORUDWLRQ UHGXFLQJ SULFHV DQG WKH H[LVWLQJ ORZ KRXVHKROG SHQHWUDWLRQ EDVH IRU H[SHQVHVIRURLODQGJDVZHUH` 3,361.65 Million as against ` 4,072.89 consumer durables. The growth prospects for individual items would, Million for the 15 months period ended March 31, 2017. KRZHYHUGHSHQGRQVSHFL¿FGHPDQGGULYHUV7KH&RPSDQ\KDVDGRSWHG the best and the most sophisticated technology to suit Indian needs. The (PSOR\HH%HQH¿WV([SHQVH Company has been planning international forays in the same industry 'XULQJWKH\HDUHQGHG0DUFKWKHHPSOR\HHEHQH¿WVH[SHQVH and has successfully forayed into international market either directly or stood at ` 2,170.77 Million as against ` 3,753.49 Million for the 15 months indirectly. period ended March 31, 2017. The company focuses on Ingenious Strategy, Improved Technology, Other Expenses Innovative Products, Inspired Thinking and Insightful Marketing. Company focuses on Customer and his needs and is committed to delight and ` 'XULQJ WKH \HDU HQGHG 0DUFK WKH RWKHU H[SHQVHV ZHUH GHOLYHUEH\RQGZKDWLVH[SHFWHG 8,419.67 Million as against ` 9,915.78 Million for the 15 months period ended March 31, 2017. The aim of the Company is to serve consumers domestically as well as internationally by creating technologically path breaking products through Finance Costs constant innovation. The Company as a part of reducing manufacturing )RU WKH \HDU HQGHG 0DUFK )LQDQFH FRVWV DPRXQWHG WR ` FRVW RI SURGXFWV KDV H[SORUHG WKH SRVVLELOLW\ RI PDQXIDFWXULQJ YDULRXV 28,310.02 Million as against ` 31,620.21 Million for the 15 months period components at the in-house facility by setting by standalone facilities. ended March 31, 2017. CAUTIONARY STATEMENT Depreciation, Amortisation and Impairment Statements in this report describe the Company’s objectives, projections, Depreciation for the year ended March 31, 2018 amounted to ` 8,148.45 estimates, expectations and predictions, may be ‘forward looking Million as against ` 9,550.73 Million for the 15 months period ended March statements’ within the meaning of applicable securities, laws and 31, 2017. regulations. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility to publicly amend, 3UR¿W/RVV%HIRUH7D[ modify or revise any forward looking statements, on the basis of any 7KHORVVEHIRUHWD[VWRRGDW` 58,401.55 Million for the year ended March subsequent development, information or events or otherwise. These DVDJDLQVW/RVVRI` 25,135.47 Million for the 15 months period statements doesn’t guarantee future performance and are subject to ended March 31, 2017. known and unknown risks, uncertainties and other factors such as change in the government regulations, tax laws, economic conditions and other incidental factors. 42 INDEPENDENT AUDITOR’S REPORT To The Members of VIDEOCON INDUSTRIES LIMITED Report on the Standalone Ind AS Financial Statements :HKDYHDXGLWHGWKHDFFRPSDQ\LQJ6WDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVRIVIDEOCON INDUSTRIES LIMITED (the Company), which comprise WKH%DODQFH6KHHWDVDW0DUFKDQGWKH6WDWHPHQWRI3UR¿WDQG/RVV LQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPH WKH&DVK)ORZ6WDWHPHQWDQG WKH6WDWHPHQWRI&KDQJHVLQ(TXLW\IRUWKH\HDUWKHQHQGHGDQGDVXPPDU\RIWKHVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQGRWKHUH[SODQDWRU\LQIRUPDWLRQ KHUHLQDIWHUUHIHUUHGWRDVVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV Management’s Responsibility for the Standalone Ind AS Financial Statements The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the Act) with respect to the SUHSDUDWLRQRIWKHVHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZRIWKH¿QDQFLDOSRVLWLRQ¿QDQFLDOSHUIRUPDQFHLQFOXGLQJRWKHU FRPSUHKHQVLYHLQFRPHFDVKÀRZVDQGFKDQJHVLQHTXLW\RIWKH&RPSDQ\LQDFFRUGDQFHZLWKWKH,QGLDQ$FFRXQWLQJ6WDQGDUGV ,QG$6 SUHVFULEHG under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making MXGJPHQWVDQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQW DQGGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDW were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the VWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU Auditor’s Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. :HFRQGXFWHGRXUDXGLWRIWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJVSHFL¿HGXQGHU6HFWLRQ RI the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether WKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW $QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDPRXQWVDQGWKHGLVFORVXUHVLQWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS ¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU,QPDNLQJWKRVHULVNDVVHVVPHQWVWKHDXGLWRUFRQVLGHUVLQWHUQDO¿QDQFLDOFRQWUROUHOHYDQWWRWKH &RPSDQ\¶VSUHSDUDWLRQRIWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWH in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting HVWLPDWHVPDGHE\WKH&RPSDQ\¶V%RDUGRI'LUHFWRUVDVZHOODVHYDOXDWLQJWKHRYHUDOOSUHVHQWDWLRQRIWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXI¿FLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKHVWDQGDORQH,QG$6 ¿QDQFLDOVWDWHPHQWV %DVLVIRU4XDOL¿HG2SLQLRQ a) As mentioned in Note No. 50 to the Standalone Ind AS Financial Statements, the Company has up to March 31, 2018 directly and through its subsidiaries, made investments of ` 75,339.53 Million in Videocon Telecommunications Limited (VTL), the subsidiary. VTL has huge accumulated losses as at March 31, 2018. The ability of VTL to continue as a going concern is substantially dependent on its ability to fund its operating and FDSLWDOH[SHQGLWXUHUHTXLUHPHQWV97/LVFRQ¿GHQWRIFRQWLQXLQJLWVFRPPHUFLDORSHUDWLRQVLQWKH1DWLRQDO/RQJ'LVWDQFH 1/' DQG,QWHUQDWLRQDO /RQJ'LVWDQFH ,/' %XVLQHVV +RZHYHULQYLHZRIWKHKXJHDFFXPXODWHGORVVHVRI97/DQGWKHUHIHUUDORI97/LQOLQHZLWKWKHGLUHFWLYHVRI5HVHUYH%DQNRI,QGLDWR1DWLRQDO &RPSDQ\/DZ7ULEXQDOXQGHUWKH,QVROYHQF\DQG%DQNUXSWF\&RGHDVDPHQGHGZHDUHXQDEOHWRH[SUHVVDQRSLQLRQRQWKHH[WHQWRI realisability of aforesaid investments in VTL. The consequential effect of the above, on the Standalone Ind AS Financial Statements for the year ended March 31, 2018 is not ascertainable. 7KHDXGLWRUV¶UHSRUWIRUWKHSUHFHGLQJ¿QDQFLDOSHULRGZDVDOVRTXDOL¿HGLQUHVSHFWRIWKLVPDWWHU b) As mentioned in Note No. 52 to the Standalone Ind AS Financial Statements, the Company has been referred to National Company Law Tribunal XQGHU WKH ,QVROYHQF\ DQG %DQNUXSWF\ &RGH DV DPHQGHG DQG WKHUH DUH SHUVLVWHQW VHYHUH VWUDLQV RQ WKH ZRUNLQJ FDSLWDO DQG WKHUH LV FRQVLGHUDEOHGHFOLQHLQOHYHORIRSHUDWLRQVRIWKH&RPSDQ\DQGWKH&RPSDQ\KDVEHHQLQFXUULQJORVVHV7KHVHIDFWRUVUDLVHVLJQL¿FDQWGRXEWVRQ the ability of the Company to continue as a “Going Concern”. The management has assumed that the going concern concept stands vitiated and is in the process of ascertaining the liquidation value of the assets. The necessary adjustments required on the carrying amount of assets and liabilities are not ascertainable at this stage. c) As mentioned in Note No. 53 to the Standalone Ind AS Financial Statements, the manufacturing activity of Glass Shell division which manufactured panels and funnels used in Colour Picture Tube of Colour Television, has been suspended from July, 2017 due to poor demand. However, the &RPSDQ\KDVQRWDVVHVVHGRUUHYLHZHGWKHSODQWDQGPDFKLQHU\DQGRWKHU¿[HGDVVHWVUHODWHGWRWKH*ODVV6KHOOGLYLVLRQIRUWKHLPSDLUPHQWDQG the impairment loss, if any, has not been ascertained. The consequent effect of the same is not ascertainable. 4XDOL¿HG2SLQLRQ ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVexcept for the possible effects of the matters described in WKH%DVLVIRU4XDOL¿HG2SLQLRQSDUDJUDSKWKHDIRUHVDLGVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVUHDGZLWKWKH1RWHVWKHUHRQJLYHWKHLQIRUPDWLRQUHTXLUHG by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of DIIDLUVRIWKH&RPSDQ\DVDW0DUFKDQGLWVORVVWRWDOFRPSUHKHQVLYHORVVLWVFDVKÀRZVDQGWKHFKDQJHLQHTXLW\IRUWKH\HDUHQGHGRQWKDW date. 43 Annual Report 2017-18 Emphasis of Matter D $VPHQWLRQHGLQ1RWH1RWRWKH6WDQGDORQH,QG$6)LQDQFLDO6WDWHPHQWVWKHEDODQFHFRQ¿UPDWLRQVDQGUHFRQFLOLDWLRQKDYHQRWEHHQUHFHLYHG in respect of certain secured and unsecured loans, balances with banks, trade receivables, trade and other payables and loans and advances. In WKHRSLQLRQRIWKHPDQDJHPHQWWKHUHZLOOQRWEHDQ\PDWHULDOLPSDFWRQWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV E 7KHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVUHÀHFWWKHVKDUHRIWKH&RPSDQ\LQWKHDVVHWVDQGWKHOLDELOLWLHVDVZHOODVWKHLQFRPHDQGH[SHQGLWXUH RIMRLQWYHQWXUHRSHUDWLRQVRQDOLQHE\OLQHEDVLV7KH&RPSDQ\KDVSDUWLFLSDWLQJLQWHUHVWRILQ5DYYD2LODQG*DV)LHOG-RLQW9HQWXUHWKURXJK a Production Sharing Contract (PSC). The Company incorporates its share in the operations of the joint venture based on statement of account UHFHLYHG IURP WKH -RLQW 9HQWXUH2SHUDWRU 7KH &RPSDQ\ KDV UHFHLYHG WKH DXGLWHG ¿QDQFLDO VWDWHPHQWV XSWR 0DUFK DQG XQDXGLWHG ¿QDQFLDOVWDWHPHQWVIRUWKHSHULRG$SULOWR0DUFKLQUHVSHFWRIWKHVDLGMRLQWYHQWXUHUHFHLYHGIURPWKH2SHUDWRUZKLFKKDVEHHQ FHUWL¿HGE\WKHPDQDJHPHQWRQZKLFKZHKDYHSODFHGUHOLDQFH 2XURSLQLRQLVQRWPRGL¿HGLQUHVSHFWRIDERYHPDWWHUV Other Matter 7KH FRPSDUDWLYH ¿QDQFLDO LQIRUPDWLRQ RI WKH &RPSDQ\ IRU WKH SHULRG HQGHG 0DUFK DQG WKH WUDQVLWLRQ GDWH RSHQLQJ EDODQFH VKHHW DV DW -DQXDU\LQFOXGHGLQWKHVHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVDUHEDVHGRQWKHSUHYLRXVO\LVVXHGVWDWXWRU\¿QDQFLDOVWDWHPHQWVSUHSDUHGLQ DFFRUGDQFHZLWKWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVDXGLWHGE\WKHSUHGHFHVVRUDXGLWRUVZKRVHUHSRUWIRUWKHSHULRGHQGHG0DUFK DQG'HFHPEHUGDWHG0D\DQG0D\UHVSHFWLYHO\H[SUHVVHGPRGL¿HGRSLQLRQRQWKRVHVWDQGDORQH¿QDQFLDOVWDWHPHQWV as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us. Report on Other Legal and Regulatory Requirements 1) As required by Section 143(3) of the Act, we report, that: D :HKDYHVRXJKWDQGREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIZHUHQHFHVVDU\IRUWKH purposes of our audit; E ,QRXURSLQLRQSURSHUERRNVRIDFFRXQWDVUHTXLUHGE\ODZKDYHEHHQNHSWE\WKH&RPSDQ\VRIDUDVLWDSSHDUVIURPRXUH[DPLQDWLRQRIWKRVH books; F 7KH%DODQFH6KHHWWKH6WDWHPHQWRI3UR¿WDQG/RVVLQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPHWKH&DVK)ORZ6WDWHPHQWDQG6WDWHPHQWRI Changes in Equity dealt with by this Report are in agreement with the relevant books of account; G ,QRXURSLQLRQWKHDIRUHVDLGVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVFRPSO\ZLWKWKH,QGLDQ$FFRXQWLQJ6WDQGDUGVSUHVFULEHGXQGHUVHFWLRQ 133 of the Act read with relevant rules issued there under; H[FHSW,QG$6µ,PSDLUPHQWRI$VVHWV¶. e) The matter relating to the extent of realisability of investments in a subsidiary, management assumption that the going concern concept stands YLWLDWHGDQGWKHSRVVLEOHLPSDLUPHQWORVVGHVFULEHGLQ%DVLVIRU4XDOL¿HG2SLQLRQSDUDJUDSKDERYHLQRXURSLQLRQPD\KDYHDQDGYHUVH effect on the functioning of the Company. I 2QWKHEDVLVRIWKHZULWWHQUHSUHVHQWDWLRQVUHFHLYHGIURPWKHGLUHFWRUVDVRQ0DUFKWDNHQRQUHFRUGE\WKH%RDUGRI'LUHFWRUVQRQH RIWKHGLUHFWRUVLVGLVTXDOL¿HGDVRQ0DUFKIURPEHLQJDSSRLQWHGDVDGLUHFWRULQWHUPVRI6HFWLRQ RIWKH$FW J :LWKUHVSHFWWRWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRIWKH&RPSDQ\DQGWKHRSHUDWLQJHIIHFWLYHQHVVRIVXFK FRQWUROVUHIHUWRRXUVHSDUDWH5HSRUWLQ$QQH[XUH$ h) With respect to the other matters to be included in the Auditor’’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) 5XOHVDVDPHQGHGLQRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXV L 7KH&RPSDQ\KDVGLVFORVHGWKHLPSDFWRISHQGLQJOLWLJDWLRQVRQLWV¿QDQFLDOSRVLWLRQLQLWVVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV5HIHU 1RWHDQGWRWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV ii) The Company did not have any long term contracts including derivatives contracts for which there were any material foreseeable losses; and LLL 7KHUHKDVEHHQQRGHOD\LQWUDQVIHUULQJDPRXQWVUHTXLUHGWREHWUDQVIHUUHGWRWKH,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ)XQGE\WKH Company. $VUHTXLUHGE\WKH&RPSDQLHV $XGLWRU¶V5HSRUW 2UGHU WKH2UGHU LVVXHGE\WKH&HQWUDO*RYHUQPHQWLQWHUPVRI6HFWLRQ RIWKH$FW ZHJLYHLQ$QQH[XUH%DVWDWHPHQWRQWKHPDWWHUVVSHFL¿HGLQSDUDJUDSKVDQGRIWKH2UGHU For S Z DESHMUKH & CO. 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KADAM Partner 0HPEHUVKLS1R Place: Mumbai 'DWH -XQH 44 ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT 5HIHUUHGWRLQSDUDJUDSK J XQGHUµ5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWV¶RIRXUUHSRUWRIHYHQGDWH Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) :HKDYHDXGLWHGWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRI9,'(2&21,1'8675,(6/,0,7(' WKH&RPSDQ\ DVRI0DUFKLQ FRQMXQFWLRQZLWKRXUDXGLWRIWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDUHQGHGRQWKDWGDWH Management’s Responsibility for Internal Financial Controls 7KH &RPSDQ\¶V PDQDJHPHQW LV UHVSRQVLEOH IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ LQWHUQDO ¿QDQFLDO FRQWUROV EDVHG RQ WKH LQWHUQDO FRQWURO RYHU ¿QDQFLDO UHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWUROVWDWHGLQWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO )LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ WKH*XLGDQFH1RWH LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KHVHUHVSRQVLELOLWLHVLQFOXGH WKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKHRUGHUO\DQGHI¿FLHQW conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, WKHDFFXUDF\DQGFRPSOHWHQHVVRIWKHDFFRXQWLQJUHFRUGVDQGWKHWLPHO\SUHSDUDWLRQRIUHOLDEOH¿QDQFLDOLQIRUPDWLRQDVUHTXLUHGXQGHUWKH&RPSDQLHV Act, 2013. Auditors’ Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJEDVHGRQRXUDXGLW:HFRQGXFWHGRXU DXGLWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHDQGWKH6WDQGDUGVRQ$XGLWLQJSUHVFULEHGXQGHU6HFWLRQ RIWKH&RPSDQLHV$FWWRWKHH[WHQW DSSOLFDEOHWRDQDXGLWRILQWHUQDO¿QDQFLDOFRQWUROV7KRVH6WDQGDUGVDQGWKH*XLGDQFH1RWHUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQ DQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZDVHVWDEOLVKHGDQG maintained and if such controls operated effectively in all material respects. 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ DQGWKHLURSHUDWLQJHIIHFWLYHQHVV2XUDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGHGREWDLQLQJDQXQGHUVWDQGLQJRILQWHUQDO¿QDQFLDO FRQWUROVRYHU¿QDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDWDPDWHULDOZHDNQHVVH[LVWVDQGWHVWLQJDQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRI internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material PLVVWDWHPHQWRIWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXI¿FLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXUDXGLWRSLQLRQRQWKH&RPSDQ\¶VLQWHUQDO ¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ Meaning of Internal Financial Controls Over Financial Reporting $FRPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKHUHOLDELOLW\RI¿QDQFLDO UHSRUWLQJDQGWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV$FRPSDQ\¶V LQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDW SHUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOH GHWDLODFFXUDWHO\DQGIDLUO\UHÀHFWWKHWUDQVDFWLRQVDQGGLVSRVLWLRQVRIWKHDVVHWVRIWKHFRPSDQ\ SURYLGHUHDVRQDEOHDVVXUDQFHWKDWWUDQVDFWLRQV DUHUHFRUGHGDVQHFHVVDU\WRSHUPLWSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQGWKDWUHFHLSWV DQGH[SHQGLWXUHVRIWKHFRPSDQ\DUHEHLQJPDGHRQO\LQDFFRUGDQFHZLWKDXWKRUL]DWLRQVRIPDQDJHPHQWDQGGLUHFWRUVRIWKHFRPSDQ\ DQG SURYLGH UHDVRQDEOHDVVXUDQFHUHJDUGLQJSUHYHQWLRQRUWLPHO\GHWHFWLRQRIXQDXWKRUL]HGDFTXLVLWLRQXVHRUGLVSRVLWLRQRIWKHFRPSDQ\¶VDVVHWVWKDWFRXOGKDYHD PDWHULDOHIIHFWRQWKH¿QDQFLDOVWDWHPHQWV Inherent Limitations of Internal Financial Controls Over Financial Reporting %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGLQJWKHSRVVLELOLW\RIFROOXVLRQRULPSURSHUPDQDJHPHQW override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal ¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJWRIXWXUHSHULRGVDUHVXEMHFWWRWKHULVNWKDWWKHLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJPD\EHFRPH inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion ,QRXURSLQLRQWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVLQDOOPDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDO ¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJDQGVXFKLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\DVDW0DUFK EDVHGRQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH&RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWURO VWDWHGLQWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD For S Z DESHMUKH & CO. Chartered Accountants )LUP5HJLVWUDWLRQ1R: D. U. KADAM Partner 0HPEHUVKLS1R Place: Mumbai 'DWH -XQH 45 Annual Report 2017-18 ANNEXURE “B”TO THE INDEPENDENT AUDITOR’S REPORT 5HIHUUHGWRLQSDUDJUDSKXQGHUµ5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWV¶RIRXUUHSRUWRIHYHQGDWH (i) ,QUHVSHFWRI¿[HGDVVHWV D 7KH&RPSDQ\KDVPDLQWDLQHGSURSHUUHFRUGVVKRZLQJIXOOSDUWLFXODUVLQFOXGLQJTXDQWLWDWLYHGHWDLOVDQGVLWXDWLRQRI¿[HGDVVHWV E $V SHU WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV SK\VLFDO YHUL¿FDWLRQ RI ¿[HG DVVHWV KDV EHHQ FDUULHG RXW LQ WHUPV RI WKH SKDVHG SURJUDPPHRIYHUL¿FDWLRQDGRSWHGE\WKH&RPSDQ\DQGQRPDWHULDOGLVFUHSDQFLHVZHUHQRWLFHGRQVXFKYHUL¿FDWLRQ,QRXURSLQLRQWKH IUHTXHQF\RIYHUL¿FDWLRQLVUHDVRQDEOHKDYLQJUHJDUGWRWKHVL]HRIWKH&RPSDQ\DQGQDWXUHRILWVEXVLQHVV F $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\WKHWLWOHGHHGV of immovable properties are held in the name of the Company. LL D $VSHUWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVWKHLQYHQWRULHV H[FOXGLQJVWRFNRIFUXGHRLOO\LQJDWH[WUDFWLRQVLWHZLWKWKH2SHUDWRU KDYH EHHQSK\VLFDOO\YHUL¿HGGXULQJWKHSHULRGE\WKHPDQDJHPHQWDWUHDVRQDEOHLQWHUYDOV,QRXURSLQLRQKDYLQJUHJDUGWRWKHQDWXUHDQGORFDWLRQ RIVWRFNVWKHIUHTXHQF\RIWKHSK\VLFDOYHUL¿FDWLRQLVUHDVRQDEOH E $VSHULQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVQRPDWHULDOGLVFUHSDQFLHVZHUHQRWLFHG (iii) The Company has granted unsecured loans that are repayable on demand to 11 companies covered in the register maintained under section 189 of WKH&RPSDQLHV$FW7KH&RPSDQ\KDVQRWJUDQWHGDQ\VHFXUHGXQVHFXUHGORDQVWR¿UPVRURWKHUSDUWLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHG under section 189 of the Companies Act, 2013. (a) The terms and conditions of the aforesaid loans are not prejudicial to the Company’s interest. (b) In respect of the aforesaid loans, we are informed that the parties are repaying the loans and interest wherever demanded and thus, there has been no default on the part of these companies to whom the money has been lent. (c) In respect of the aforesaid loans, there is no overdue amount more than rupee one lakh. LY ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVWKH&RPSDQ\KDVFRPSOLHGZLWKWKHSURYLVLRQVRI6HFWLRQDQG of the Act, in respect of loans, investments, guarantees and security. Y $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVQRWDFFHSWHGDQ\GHSRVLWGXULQJWKHSHULRG7KHUHIRUHWKHSURYLVLRQV RIFODXVH Y RIWKH2UGHULVQRWDSSOLFDEOH YL $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVLQRXURSLQLRQWKH&RPSDQ\KDVprima facie, made and maintained the prescribed cost UHFRUGVSXUVXDQWWRWKH&RPSDQLHV &RVW5HFRUGVDQG$XGLW 5XOHVDVDPHQGHGDQGSUHVFULEHGE\WKH&HQWUDO*RYHUQPHQWXQGHUVHFWLRQ RIWKH&RPSDQLHV$FW:HKDYHKRZHYHUQRWPDGHDGHWDLOHGH[DPLQDWLRQRIWKHFRVWUHFRUGVZLWKDYLHZWRGHWHUPLQHZKHWKHUWKH\ are accurate or complete. YLL D $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGWKHUHFRUGVH[DPLQHGE\XVWKH&RPSDQ\LVUHJXODULQGHSRVLWLQJXQGLVSXWHG VWDWXWRU\GXHVLQFOXGLQJSURYLGHQWIXQGHPSOR\HHV¶VWDWHLQVXUDQFHLQFRPHWD[VDOHVWD[VHUYLFHWD[GXW\RIFXVWRPVGXW\RIH[FLVHYDOXH DGGHGWD[FHVVDQGRWKHUVWDWXWRU\GXHVZLWKDSSURSULDWHDXWKRULWLHVZKHUHYHUDSSOLFDEOH$FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQV JLYHQWRXVXQGLVSXWHGDUUHDUVRIVWDWXWRU\GXHVZKLFKZHUHRXWVWDQGLQJDVRQ0DUFKIRUDSHULRGRIPRUHWKDQVL[PRQWKVIURPWKH date they became payable and not paid till date are given below: 1DWXUHRI'XHV ` in Million &HQWUDO6DOHV7D[ 3.91 9DOXH$GGHG7D[ (QWU\7D[ *RRGVDQG6HUYLFH7D[ E $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\GHWDLOVRIGXHV RILQFRPHWD[VDOHVWD[VHUYLFHWD[FXVWRPGXW\H[FLVHGXW\YDOXHDGGHGWD[FHVVZKLFKKDYHQRWEHHQGHSRVLWHGDVRQ0DUFK on account of disputes are given below: 1DPHRI6WDWXWH 1DWXUHRIWKH'XHV ` in Million )RUXPZKHUHGLVSXWHLVSHQGLQJ &XVWRPV$FW Custom Duty and Penalties 5.83 Supreme Court 1.50 High Court CESTAT Commissioner Deputy Commissioner Asst. Commissioner &HQWUDO([FLVH$FW ([FLVH'XW\DQG3HQDOWLHV 93.42 Supreme Court High Court CESTAT Commissioner (Appeals) Commissioner 25.34 Addl. Commissioner 2.00 Asst. Commissioner )LQDQFH$FW 6HUYLFH7D[DQG3HQDOWLHV Commissioner 6HUYLFH7D[3URYLVLRQV 2.25 Addl. Commissioner 46 1DPHRI6WDWXWH 1DWXUHRIWKH'XHV ` in Million )RUXPZKHUHGLVSXWHLVSHQGLQJ &HQWUDO6DOHV7D[$FW 6DOHV7D[ High Court DQG6DOHV7D[$FWV 8.48 Appellate Tribunal of various States 152.18 Tribunal Commissioner (Appeals) -RLQW&RPPLVVLRQHU $SSHDOV 11.93 -RLQW&RPPLVVLRQHU 40.30 Addl. Commissioner 24.38 Addl. Commissioner (Appeals) 0.19 Deputy Commissioner (Appeals) 31.93 Deputy Commissioner Assistant Commissioner 0.20 &RPPHUFLDO7D[2I¿FHU 6DOHV7D[2I¿FHU ,QFRPH7D[$FW ,QFRPH7D[ High Court 34.09 ,QFRPH7D[$SSHOODWH7ULEXQDO Commissioner (Appeals) 1DYL0XPEDL0XQLFLSDO Cess High Court Corporation YLLL $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\ZHREVHUYHGWKDW WKH&RPSDQ\KDVGHIDXOWHGLQUHSD\PHQWRILQWHUHVWDQGSULQFLSDODPRXQWRIDOOORDQVWR¿QDQFLDOLQVWLWXWLRQVDQGEDQNV7KHGHIDXOWUXQVLQWRPRUH WKDQGD\V The Company has not borrowed from government and has not issued any debentures. L[ $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVQRWUDLVHGPRQH\E\ZD\RILQLWLDOSXEOLFRIIHURUIXUWKHUSXEOLFRIIHU (including debt instruments) or term loans during the year. [ $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRPDWHULDOIUDXGE\WKH&RPSDQ\RUDQ\IUDXGRQWKH&RPSDQ\E\LWVRI¿FHUVRU employees has been noticed or reported during the period. [L 7KH&RPSDQ\KDVQRWSDLGRUSURYLGHGWKHPDQDJHULDOUHPXQHUDWLRQWRDQ\RILWV'LUHFWRU [LL 7KH&RPSDQ\LVQRWD1LGKL&RPSDQ\DQGKHQFHUHSRUWLQJXQGHUFODXVH [LL RIWKH2UGHULVQRWDSSOLFDEOH [LLL $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\ZHREVHUYHGWKDW WUDQVDFWLRQVZLWKWKHUHODWHGSDUWLHVDUHLQFRPSOLDQFHZLWK6HFWLRQDQGRIWKH&RPSDQLHV$FWZKHUHDSSOLFDEOHDQGWKHGHWDLOVKDYH EHHQGLVFORVHGLQWKH¿QDQFLDOVWDWHPHQWVHWFDVUHTXLUHGE\WKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGV [LY $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\ZHREVHUYHGWKDWWKH Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period. [Y $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVDQGRQWKHEDVLVRIRXUH[DPLQDWLRQRIWKHUHFRUGVRIWKH&RPSDQ\ZHREVHUYHGWKDWWKH &RPSDQ\KDVQRWHQWHUHGLQWRDQ\QRQFDVKWUDQVDFWLRQVZLWKLWVGLUHFWRUVRUSHUVRQVFRQQHFWHGZLWKKLPDQGKHQFHSURYLVLRQVRIVHFWLRQ RI the Companies Act, 2013 are not applicable. [YL ,QRXURSLQLRQWKH&RPSDQ\LVQRWUHTXLUHGWREHUHJLVWHUHGXQGHU6HFWLRQ,$RIWKH5HVHUYH%DQNRI,QGLD$FW 7KHUHIRUHWKH&ODXVH [YL RISDUDJUDSKRIWKH2UGHULVQRWDSSOLFDEOHWRWKH&RPSDQ\ For S Z DESHMUKH & CO. Chartered Accountants )LUP5HJLVWUDWLRQ1R: D. U. KADAM Partner 0HPEHUVKLS1R Place: Mumbai 'DWH -XQH 47 Annual Report 2017-18 BALANCE SHEET AS AT MARCH 31, 2018 (` in Million) As at As at As at Particulars Notes March 31, 2018 March 31, 2017 January 1, 2016 I. ASSETS 1) Non-current assets Property, Plant and Equipment 2 &DSLWDOZRUNLQSURJUHVV 2 4,903.81 2WKHU,QWDQJLEOHDVVHWV 3 80.89 301.54 )LQDQFLDO$VVHWV i) Investments ,QYHVWPHQWVLQ6XEVLGLDU\$VVRFLDWHDQG-RLQW9HQWXUH 4A 95,245.55 100,810.15 88,314.44 2WKHULQYHVWPHQWV 4B ii) /RDQV 5 iii) 2WKHUV 39.25 90.95 2WKHUQRQFXUUHQWDVVHWV 352.08 2WKHU7D[$VVHWV 1HW 818.50 Total non current assets 265,326.63 212,986.35 214,316.52 2) Current assets Inventories 8 23,592.01 )LQDQFLDO$VVHWV i) Investments 9 52.00 ii) Trade receivables 10 24,003.15 28,585.19 iii) Cash and cash equivalents 11a 441.51 iv) Bank balances other than (11a) above 11b 2,039.59 5,120.28 v) /RDQV 12 104,822.81 vi) 2WKHUV 13 515.14 880.30 2WKHUFXUUHQWDVVHWV 14 Total current assets 69,091.11 163,602.13 185,979.24 TOTAL ASSETS 334,417.74 376,588.48 400,295.76 II. EQUITY AND LIABILITIES 1) Equity Equity share capital 15 3,344.59 3,344.59 3,344.59 2WKHUHTXLW\ Total Equity 41,771.43 98,330.99 119,218.81 2) Non current liabilities )LQDQFLDOOLDELOLWLHV i) Borrowings - 185,183.93 Provisions 18 'HIHUUHGWD[OLDELOLWLHV QHW 19 13,041.51 'HIHUUHGLQFRPH*UDQWIRUR]RQHSURMHFW Total non current liabilities 4,616.04 182,114.10 200,603.71 3) Current liabilities )LQDQFLDOOLDELOLWLHV i) Borrowings 20 245,039.51 ii) Trade payables 21 19,048.84 iii) 2WKHUV 22 24,111.82 2WKHUFXUUHQWOLDELOLWLHV 23 2,918.88 1,020.10 Provisions 24 548.85 Total Current liabilities 288,030.27 96,143.39 80,473.24 TOTAL EQUITY AND LIABILITIES 334,417.74 376,588.48 400,295.76 6LJLQL¿FDQW$FFRXWLQJ3ROLFLHV 1 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKH¿QDQFLDOVWDWHPHQWV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 ',1 Place : Mumbai 'DWH -XQH 48 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018 (` in Million) For the year ended For 15 Months ended Particulars Notes March 31, 2018 March 31, 2017 I. Income 5HYHQXHIURP2SHUDWLRQV 25 122,524.90 2WKHULQFRPH Total Income 34,239.07 127,788.51 II. Expenses Cost of materials consumed 3XUFKDVHRIVWRFNLQWUDGH 28 9,005.84 &KDQJHVLQLQYHQWRULHVRI¿QLVKHGJRRGVZRUNLQSURJUHVVDQGVWRFNLQWUDGH 29 ([FLVH'XW\ 3URGXFWLRQDQG([SORUDWLRQH[SHQVH2LODQG*DV 30 (PSOR\HH%HQH¿WV([SHQVHV 31 )LQDQFH&RVWV 32 28,310.02 'HSUHFLDWLRQDQG$PRUWL]DWLRQ([SHQVHV 2 8,148.45 2WKHU([SHQVHV 33 Total Expenses 86,440.48 152,923.98 Exceptional Item 34 3UR¿W /RVV EHIRUH7D[ (58,401.55) (25,135.47) Tax expense: 35 i) &XUUHQW7D[ ii) 'HIHUUHG7D[ (4,335.30) Total Tax Expenses (5,761.18) (4,335.30) 3UR¿W /RVV IRUWKH\HDUSHULRG (52,640.37) (20,800.17) 2WKHUFRPSUHKHQVLYHLQFRPH ORVV ,WHPVWKDWZLOOQRWEHUHFODVVL¿HGWRVWDWHPHQWRISUR¿WRUORVVLQVXEHVHTXHQWSHULRG i) 5HPHDVXUHPHQWVRIWKHGH¿QHGEHQH¿WSODQV 31.95 (3.58) ii) (TXLW\LQVWUXPHQWVWKURXJKRWKHUFRPSUHKHQVLYHLQFRPHQHWFKDQJHLQIDLUYDOXH (25.81) iii) ,QFRPHWD[RQDERYH 1.24 (3,956.28) (28.15) 7RWDOFRPSUHKHQVLYHLQFRPH ORVV IRUWKH\HDUSHULRG (56,596.65) (20,828.32) Earnings per equity share Basic and diluted earnings per share 6LJLQL¿FDQW$FFRXWLQJ3ROLFLHV 1 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKH¿QDQFLDOVWDWHPHQWV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 ',1 Place : Mumbai 'DWH -XQH 49 Annual Report 2017-18 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2018 (` in Million) For the year ended 15 Months ended Particulars March 31, 2018 March 31, 2017 A. CASH FLOW FROM OPERATING ACTIVITIES 3UR¿W /RVV EHIRUHWD[ (58,401.55) Adjustments for: Depreciation and amortisation 8,148.45 ([FHSWLRQDO,WHP )LQDQFHFRVWV 28,310.02 *DLQ ORVV RQPRGL¿FDWLRQRI¿QDQFLDOLQVWUXPHQW Provision for warranty and maintenance (81.53) Provision for gratuity (22.22) 24.52 Provision for leave encashment (23.35) Provision for abandonment and site restoration costs 4.23 Provision for doubtful debts 3,313.38 11.00 *XDUDQWHHFRPLVVLRQ (95.85) Interest income (494.93) (1,391.33) Income from Investments and Securities Division (4,383.35) 3UR¿W /RVVRQVDOHRI¿[HGDVVHWV 100.84 Adjustment of grant (5.10) 2SHUDWLQJ3UR¿WEHIRUH:RUNLQJ&DSLWDO&KDQJHV (18,925.50) 14,146.84 Adjustments for: Inventories 14,558.11 (5,043.18) Trade receivables /RDQVDQGDGYDQFHV 2WKHU¿QDQFLDODQGQRQ¿QDQFLDODVVHWV Trade payables 2WKHU¿QDQFLDODQGQRQ¿QDQFLDOOLDELOLWLHV (2,135.21) 18,081.01 Cash generated from Operations (8,337.33) 44,040.31 /HVV 7D[HV3DLG 1HW 185.81 1HW&DVK XVHGLQ IURP2SHUDWLQJ$FWLYLWLHV (A) (8,232.77) 43,854.50 B. CASH FLOW FROM INVESTING ACTIVITIES 6DOHRI¿[HGDVVHWV 40.31 3XUFKDVHRI¿[HGDVVHWV LQFOXGLQJFDSLWDOZRUNLQSURJUHVV (82.12) (243.84) Interest income 494.93 1,391.33 ,QFUHDVH LQ)L[HGGHSRVLWVDQGRWKHUEDQNEDODQFHV 3XUFKDVH 6DOHRI,QYHVWPHQWV QHW 2.09 (15.15) 'HFUHDVH ,QFUHDVH LQ,QYHVWPHQWVLQ6XEVLGLDULHV QHW (12,380.49) Income from Investments and Securities Division 410.30 Net Cash from Investing Activities (B) 9,510.80 10,182.20 C. CASH FLOW FROM FINANCING ACTIVITIES 'HFUHDVH ,QFUHDVHLQQRQFXUUHQWERUURZLQJV (3,515.02) 'HFUHDVH ,QFUHDVHLQFXUUHQWERUURZLQJV )LQDQFHFRVWV (28,310.02) *DLQ ORVV RQPRGL¿FDWLRQRI¿QDQFLDOLQVWUXPHQW Payment of dividend (2.02) (1.20) 1HW&DVKIURP XVHGLQ )LQDQFLQJ$FWLYLWLHV (C) 528.10 (55,002.46) Net Change in Cash and Cash Equivalents (A+B+C) 1,806.13 (965.76) &DVKDQG&DVK(TXLYDOHQWVDWEHJLQQLQJRIWKH\HDUSHULRG 441.51 &DVKDQG&DVK(TXLYDOHQWVDWHQGRIWKH\HDUSHULRG 2,247.64 441.51 Notes: The movement of borrowings as per Ind AS 7 is as follows: Non-Current Current Total 2SHQLQJERUURZLQJVDVRQ$SULO 3URFHHGV 5HSD\PHQWV GXULQJWKH\HDU 28,840.14 1RQFDVKDGMXVWPHQWV Closing borrowings as on March 31, 2018 - 245,039.51 245,039.51 ,QFOXGHVWUDQVIHUIURPQRQFXUUHQWERUURZLQJVWRFXUUHQWERUURZLQJV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 ',1 Place : Mumbai 'DWH -XQH 50 STATEMENT OF CHANGES IN EQUITY (SOCIE) FOR THE YEAR ENDED MARCH 31, 2018 a) Equity share capital Particulars Note ` in Million %DODQFHDVDW-DQXDU\ 3,344.59 Changes in equity share capital during the period 15 %DODQFHDVDW0DUFK 3,344.59 Changes in equity share capital during the year 15 Balance as at March 31, 2018 3,344.59 b) Other equity (` in Million) Equity Reserves & Surplus Equity component instruments of through Particulars compound Capital Capital Securities %RQG General Retained OCI Total ¿QDQFLDO Reserve Redemption Premium Debenture Reserve earnings* instrument Reserve Account Redemption Reserve Balance at January 1, 2016 24.31 5.69 997.59 48,876.99 1,618.38 16,801.48 47,560.19 (10.41) 115,874.22 3UR¿W /RVV IRUWKHSHULRG 2WKHUFRPSUHKHQVLYHLQFRPH ORVV IRUWKH (2.34) (25.81) (28.15) period 7RWDOFRPSUHKHQVLYHLQFRPH ORVV IRU ------(20,802.51) (25.81) (20,828.32) the period Deemed equity contribution to promoters (59.50) (59.50) 7UDQVIHUUHGWRIURPUHWDLQHGHDUQLQJV (399.41) 399.41 Balance at March 31, 2017 24.31 5.69 997.59 48,876.99 1,218.97 16,801.48 27,097.59 (36.22) 94,986.40 3UR¿W /RVV IRUWKH\HDU 2WKHUFRPSUHKHQVLYHLQFRPH ORVV IRUWKH 20.49 year 7RWDOFRPSUHKHQVLYHLQFRPH ORVV IRU ------(52,619.88) (3,976.77) (56,596.65) the year Deemed equity contribution to promoters 37.09 7UDQVIHUUHGWRIURPUHWDLQHGHDUQLQJV Balance at March 31, 2018 24.31 5.69 997.59 48,876.99 1,222.83 16,801.48 (25,489.06) (4,012.99) 38,426.84 ,QFOXGHVIDLUYDOXDWLRQLPSDFWRI/DQGDQG%XLOGLQJ`0LOOLRQIRU0DUFK` 0LOOLRQLQ0DUFKDQG`0LOOLRQLQ-DQXDU\6XFKDPRXQWV are not available for distribution as dividend. As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 ',1 Place : Mumbai 'DWH -XQH 51 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Note 1 Judgements: 6LJQL¿FDQWDFFRXQWLQJSROLFLHV Infromation about judgements made in applying acounting policies WKDW KDYH WKH PRVW VLJQL¿FDQW HIIHFWV RQ WKH DPRXQWV UHFRJQLVHG 1.1 Reporting entity LQWKHVWDQGDORQH¿QDQFLDOVWDWHPHQWVLVLQFOXGHGLQWKHIROORZLQJ 9LGHRFRQ,QGXVWULHV/LPLWHGLVDFRPSDQ\GRPLFLOHGLQ,QGLDZLWKLWV notes: UHJLVWHUHGRI¿FHVLWXDWHGDW.06WRQH9LOODJH&KLWWHJDRQ7DOXND 1RWH & ± 8VHIXO OLIH RI SURSHUW\ SODQW DQG HTXLSPHQW DQG 3DLWKDQ $XUDQJDEDG 3LQFRGH 7KH &RPSDQ\ KDV EHHQ intangible assets LQFRUSRUDWHG XQGHU WKH SURYLVLRQV RI &RPSDQLHV $FW 7KH entity is primarily involved in manufacturing and trading of consumer Assumptions and estimation uncertainities GXUDEOHVDQGH[WUDFWLRQRIFUXGHRLODQGQDWXUDOJDV 1RWH5±UHFRJQLWLRQRIGHIHUUHGWD[DVVHWV DYDLODELOLW\RIIXWXUH 1.2 Basis of preparation WD[DEOHSUR¿WDJDLQVWZKLFKWD[ORVVHVFDUULHGIRUZDUGFDQEHXVHG A. Statement of compliance 1RWH 1 ± PHDVXUHPHQW RI GH¿QHG EHQH¿W REOLJDWLRQV NH\ actuarial assumptions; 7KHVH¿QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK the Indian Accounting Standards (hereinafter referred to as the ‘Ind 1RWHV 2 ± UHFRJQLWLRQ DQG PHDVXUHPHQW RI SURYLVLRQV DQG $6¶ DVQRWL¿HGE\0LQLVWU\RI&RUSRUDWH$IIDLUVSXUVXDQWWRVHFWLRQ contingencies: key assumptions about the likelihood and magnitude 133 of the Companies Act, 2013 read with Rule 3 of the Companies RIDQRXWÀRZRIUHVRXUFHV (Indian Accounting Standards) Rules, 2015 and Companies (Indian E. Measurement of fair values $FFRXQWLQJ6WDQGDUGV $PHQGPHQW5XOHVDQGRWKHUUHOHYDQW provisions of the Act. The Company’s accounting policies and disclosures require the PHDVXUHPHQW RI IDLU YDOXHV IRU ERWK ¿QDQFLDO DQG QRQ¿QDQFLDO 7KHVH¿QDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFKDUH instruments. WKH¿UVW¿QDQFLDOVWDWHPHQWVSUHSDUHGXQGHU,QG$6)RUDOOSHULRGV upto and including the year ended December 31, 2015, the Company The Company has an established control framework with respect to SUHSDUHGLWV¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKWKHDFFRXQWLQJ WKHPHDVXUHPHQWRIIDLUYDOXHV)DLUYDOXHLVWKHSULFHWKDWZRXOGEH VWDQGDUGV QRWL¿HG XQGHU WKH 6HFWLRQ RI WKH &RPSDQLHV $FW received to sell an asset or paid to transfer a liability in an orderly UHDGWRJHWKHUZLWKSDUDJUDSKRIWKH&RPSDQLHV $FFRXQWV transaction between market participants at the measurement date, 5XOHV KHUHLQDIWHU UHIHUUHG WR DV µ3UHYLRXV *$$3¶ XVHG regardless of whether that price is directly observable or estimated for its statutory reporting requirement in India immediately before using another valuation technique. The management regularly DGRSWLQJ,QG$67KH¿QDQFLDOVWDWHPHQWVIRUWKHPRQWKHQGHG UHYLHZVVLJQL¿FDQWXQREVHUYDEOHLQSXWVDQGYDOXDWLRQDGMXVWPHQWV 0DUFKDQGWKHRSHQLQJ%DODQFH6KHHWDVDW-DQXDU\ If third party information, such as broker quotes or pricing services, KDYHEHHQUHVWDWHGLQDFFRUGDQFHZLWK,QG$6IRUFRPSDUDWLYH is used to measure fair values, then the management assesses the LQIRUPDWLRQ 5HFRQFLOLDWLRQV DQG H[SODQDWLRQV RI WKH HIIHFW RI WKH evidence obtained from the third parties to support the conclusion WUDQVLWLRQIURP3UHYLRXV*$$3WR,QG$6RQWKH&RPSDQ\¶V(TXLW\ that such valuations meet the requirements of Ind AS, including the 7RWDO&RPSUHKHQVLYH,QFRPHDQG&DVK)ORZVDUHSURYLGHG level in the fair value hierarchy in which such valuations should be The accounting policies are applied consistently to all the periods FODVVL¿HG SUHVHQWHGLQWKH¿QDQFLDOVWDWHPHQWVLQFOXGLQJWKHSUHSDUDWLRQRI :KHQ PHDVXULQJ WKH IDLU YDOXH RI D ¿QDQFLDO DVVHW RU D ¿QDQFLDO WKHRSHQLQJ,QG$6%DODQFH6KHHWDVDW-DQXDU\EHLQJWKH liability, the Company uses observable market data as far as ‘date of transition to Ind AS’. SRVVLEOH )DLU YDOXHV DUH FDWHJRULVHG LQWR GLIIHUHQW OHYHOV LQ D IDLU 7KH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDUHQGHG0DUFK value hierarchy based on the inputs used in the valuation techniques 31, 2018 were approved for issue in accordance with the resolution as follows: RI WKH %RDUG RI 'LUHFWRUV RQ -XQH 'HWDLOV RI DFFRXQWLQJ /HYHO TXRWHGSULFHV XQDGMXVWHG LQDFWLYHPDUNHWVIRULGHQWLFDO SROLFLHVDUHLQFOXGHGLQ1RWH assets or liabilities. B. Functional and presentation currency /HYHO LQSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGLQ/HYHOWKDWDUH 7KHVH¿QDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQ,QGLDQ5XSHVV ,15 observable for the asset or liability, either directly (i.e. as prices) or which is also the entity's functional currency. All amounts have been indirectly (i.e. derived from prices). rounded off to the nearest Millions unless otherwise indicated. /HYHO LQSXWV IRU WKH DVVHW RU OLDELOLW\ WKDW DUH QRW EDVHG RQ C. Basis of measurement observable market data (unobservable inputs). 7KH ¿QDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG RQ KLVWRULFDO FRVW If the inputs used to measure the fair value of an asset or a liability EDVLVH[FHSWIRUWKHIROORZLQJDVVHWVDQGOLDELOLWLHVZKLFKKDYHEHHQ fall into different levels of the fair value hierarchy,then the fair value measured at fair value: measurement is categorised in its entirety in the same level of the IDLUYDOXHKLHUDUFK\DVWKHORZHVWOHYHOLQSXWWKDWLVVLJQL¿FDQWWRWKH &HUWDLQ¿QDQFLDODVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXH UHIHU entire measurement. DFFRXQWLQJSROLF\UHJDUGLQJ¿QDQFLDOLQVWUXPHQWV The Company recognises transfers between levels of the fair value 1HWGH¿QHGEHQH¿W DVVHW OLDELOLW\±IDLUYDOXHRISODQDVVHWVOHVV hierarchy at the end of the reporting period during which the change SUHVHQWYDOXHRIGH¿QHGEHQH¿WREOLJDWLRQV has occurred. 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LL &ODVVL¿FDWLRQDQGVXEVHTXHQWPHDVXUHPHQW YL ,PSDLUPHQWRI)LQDQFLDO$VVHW )LQDQFLDODVVHWVDUHVXEVHTXHQWO\FODVVL¿HGDQGPHDVXUHGDW 7UDGHUHFHLYDEOHVDUHWHVWHGIRULPSDLUPHQWRQDVSHFL¿FEDVLVDIWHU considering the sanctioned credit limits, security deposit collected DPRUWLVHGFRVW HWFDQGH[SHFWDWLRQVDERXWIXWXUHFDVKÀRZV IDLUYDOXHWKURXJKSUR¿WDQGORVV )973/ 7KH)L[HG$VVHWVRUDJURXSRIDVVHWV FDVKJHQHUDWLQJXQLW DQG IDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH )92&, Producing Properties are reviewed for impairment at each Balance Sheet date. In case of any such indication, the recoverable amount 0DQDJHPHQW GHWHUPLQHV WKH FODVVL¿FDWLRQ RI LWV ¿QDQFLDO DVVHWV of these assets or group of assets is determined, and if such at the time of initial recognition or, where applicable, at the time of recoverable amount of the asset or cash generating unit to which the UHFODVVL¿FDWLRQ)LQDQFLDODVVHWVDUHQRWUHFODVVL¿HGVXEVHTXHQWWR asset belongs is less than it's carrying amount, the impairment loss WKHLUUHFRJQLWLRQH[FHSWLIDQGLQWKHSHULRGWKH&RPSDQ\FKDQJHV is recognised by writing down such assets and Producing Properties LWVEXVLQHVVPRGHOIRUPDQDJLQJ¿QDQFLDODVVHWV to their recoverable amount. An impairment loss is reversed if there iii) Debt instruments are initially measured at amortised cost, fair value is change in the recoverable amount and such loss either no longer WKURXJKRWKHUFRPSUHKHQVLYHLQFRPH µ)92&,¶ RUIDLUYDOXHWKURXJK H[LVWVRUKDVGHFUHDVHG SUR¿W RU ORVV µ)973/¶ WLOO GHUHFRJQLWLRQ RQ WKH EDVLV RI L WKH B. 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FRQWUDFWXDO FDVK ÀRZV WKDW DUH VROHO\ SD\PHQWV RI SULQFLSDO DQG 53 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) 7KH &RPSDQ\¶V ¿QDQFLDO OLDELOLWLHV DW DPRUWLVHG FRVW LQFOXGHV in the aforesaid Schedule. Producing Properties are depleted using loan and borrowings, interest accrued but not due on borrowings, WKH8QLWRI3URGXFWLRQ0HWKRG7KHUDWHRIGHSOHWLRQLVFRPSXWHG WUDGHDQGRWKHUSD\DEOHV6XFK¿QDQFLDOOLDELOLWLHVDUHUHFRJQLVHG LQ SURSRUWLRQ RI RLO DQG JDV SURGXFWLRQ DFKLHYHG YLVDYLV SURYHG initially at fair value minus any directly attributable transaction UHVHUYHV /HDVHKROG /DQG LV DPRUWLVHG RYHU WKH SHULRG RI OHDVH FRVWV6XEVHTXHQWWRLQLWLDOUHFRJQLWLRQWKHVH¿QDQFLDOOLDELOLWLHVDUH Assets costing ` 5,000 or less are fully depreciated in the year of measured at amortised cost using the effective interest method. purchase. LL )LQDQFLDOJXDUDQWHHFRQWUDFWV The estimated useful life of items of property, plant and equipment for the current and comparitive period are as follows: 7KH &RPSDQ\ KDV HOHFWHG WR DFFRXQW DOO LWV ¿QDQFLDO JXDUDQWHH FRQWUDFWV DV ¿QDQFLDO LQVWUXPHQWV DV VSHFL¿HG LQ ,QG$6 RQ Asset Management Useful life as )LQDQFLDO ,QVWUXPHQWV 7KH FRPSDQ\ UHFRJQLVHV WKH FRPPLVVLRQ estimate of per Schedule LQFRPH RQ VXFK ¿QDQFLDO JXDUDQWHHV DQG DFFRXQWV IRU WKH VDPH useful life II LQ VWDWHPHQW RI 3UR¿W DQG /RVV RYHU WKH WHQXUH RI WKH ¿QDQFLDO guarantee. Buildings 30 30 iii) Derecognition Plant and Machinery 15 15 )XUQDFH 10 10 $¿QDQFLDOOLDELOLW\LVGHUHFRJQLVHGZKHQWKHREOLJDWLRQVSHFL¿HGLQ WKHFRQWUDFWLVGLVFKDUJHGFDQFHOOHGRUH[SLUHV )XUQLWXUHVDQG)L[WXUHV 10 10 2IIVHWWLQJRI¿QDQFLDOLQVWUXPHQWV Computers 3 3 Electrical Installation 10 10 )LQDQFLDODVVHWVDQG¿QDQFLDOOLDELOLWLHVDUHRIIVHWDQGWKHQHWDPRXQW is reported in the balance sheet if there is a currently enforceable 2I¿FH(TXLSPHQWV 55 legal right to offset the recognised amounts and there is an intention 9HKLFOHV 10 10 to settle on a net basis, to realise the assets and settle the liabilities /HDVHKROGODQGDQG/HDVHKROG,PSURYHPHQWVLVDPRUWLVHGRYHUWKH simultaneously. period of lease. C. Property, Plant and Equipment Depreciation method, useful lives and residual values are reviewed i) Recognition and measurement DWHDFK¿QDQFLDO\HDUHQGDQGDGMXVWHGLIDSSURSULDWH Items of property, plant and equipment (PPE) are measured at D. Intangible assets RULJLQDO FRVW QHW RI WD[ GXW\ FUHGLW DYDLOHG OHVV DFFXPXODWHG i) Recognition and measurement depreciation and accumulated impairment losses, if any. Cost LQFOXGHVH[SHQGLWXUHWKDWLVGLUHFWO\DWWULEXWDEOHWRWKHDFTXLVLWLRQRI Intangible assets are recognised when it is probable that the items. If signifacnt parts of PPE have different useful lives, then IXWXUH HFRQRPLF EHQH¿WV WKDW DUH DWWULEXWDEOH WR FRQFHUQHG they are accounted for as seperate items (major comopnents) of DVVHWVZLOOÀRZWRWKH&RPSDQ\DQGWKHFRVWRIWKHDVVHWVFDQ PPE. be measured reliably. Plant and Equipment which are not ready for intended use as on the Intangible assets are initially measured at cost and are GDWHRI%DODQFH6KHHWDUHGLVFORVHGDV³&DSLWDOZRUNLQSURJUHVV´ subsequently measured at cost less accumulated amortisation Capital work in progress is carried at cost, comprising of direct cost, and any accumulated impairment losses. DWWULEXWDEOHLQWHUHVWDQGUHODWHGLQFLGHQWDOH[SHQGLWXUH LL 6XEVHTXHQWH[SHQGLWXUH Advances paid towards the acquisition of PPE outstanding at each 6XEVHTXHQWH[SHQGLWXUHLVFDSLWDOLVHGRQO\ZKHQLWLQFUHDVHV UHSRUWLQJGDWHDUHFODVVL¿HGDVFDSLWDODGYDQFHVXQGHU2WKHU1RQ WKHIXWXUHHFRQRPLFEHQH¿WVHPERGLHGLQWKHVSHFL¿FDVVHWWR Current Assets. which it relates. 33(DUHHOLPLQDWHGIURP¿QDQFLDOVWDWHPHQWRQGLVSRVDODQGJDLQV iii) Transition to Ind AS or losses arising from disposal are recognised in the statement of 3UR¿WDQG/RVVLQWKH\HDURIRFFXUUHQFH 2QWUDQVLWLRQWR,QG$6WKH&RPSDQ\KDVHOHFWHGWRFRQWLQXH with the carrying value of all of its intangible assets recognised ii) Transition to Ind AS DVDW-DQXDU\PHDVXUHGDVSHUWKHSUHYLRXV*$$3 2QWUDQVLWLRQWR,QG$6FHUWDLQLWHPVRISURSHUW\SODQWDQGHTXLSPHQW and use that carrying value as the deemed cost of such have been fair valued and such fair value is considered as deemed intangible assets. cost on the transition date. iv) Amortisation 7KH&RPSDQ\KDVHOHFWHGWRDSSO\WKHH[HPSWLRQDYDLODEOHXQGHU ,QWDQJLEOHDVVHWVDUHDPRUWLVHGXVLQJWKHVWUDLJKWOLQHPHWKRG Ind AS 101 to continue the carrying value for all of its property, plant RYHUDSHULRGRI¿YH\HDUV DQGHTXLSPHQWDVUHFRJQLVHGLQWKH¿QDQFLDOVWDWHPHQWVDVDWWKH GDWHRIWUDQVLWLRQWR,QG$6PHDVXUHGDVSHUWKHSUHYLRXV*$$3 Amortisation method, useful lives and residual values are and use that as its deemed cost as at the date of transition. 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Joint Ventures for Oil and Gas Fields written down value method based on useful life of the assets as SUHVFULEHGLQ6FKHGXOH,,WRWKH&RPSDQLHV$FWH[FHSWD RQ In respect of unincorporated joint ventures in the nature of Production )L[HG$VVHWV RI &RQVXPHU (OHFWURQLFV 'LYLVLRQV RWKHU WKDQ *ODVV Sharing Contracts (PSC) entered into by the Company for oil and 6KHOO 'LYLVLRQ DQG E RQ RI¿FH EXLOGLQJV DFTXLUHG DIWHU VW$SULO JDVH[SORUDWLRQDQGSURGXFWLRQDFWLYLWLHVWKH&RPSDQ\ VVKDUHLQ 2000, on which depreciation is provided on straight line method WKHDVVHWVDQGOLDELOLWLHVDVZHOODVLQFRPHDQGH[SHQGLWXUHRI-RLQW based on useful life of the assets as prescribed in the said Schedule. 9HQWXUH2SHUDWLRQVDUHDFFRXQWHGIRUDFFRUGLQJWRWKH3DUWLFLSDWLQJ 'HSUHFLDWLRQ RQ ¿[HG DVVHWV KHOG RXWVLGH ,QGLD LV SURYLGHG RQ ,QWHUHVWRIWKH&RPSDQ\DVSHUWKH36&DQGWKH-RLQW2SHUDWLQJ straight line method based on useful life of the assets as prescribed 54 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) $JUHHPHQWV RQ D OLQHE\OLQH EDVLV LQ WKH &RPSDQ\ V )LQDQFLDO An impairment loss is recognised if the carrying amount of an asset Statements. In respect of joint ventures in the form of incorporated RU &*8 H[FHHGV LWV HVWLPDWHG UHFRYHUDEOH DPRXQW ,PSDLUPHQW jointly controlled entities, the investment in such joint venture is losVHVDUHUHFRJQLVHGLQWKHVWDWHPHQWRISUR¿WDQGORVV,PSDLUPHQW WUHDWHGDVORQJWHUPLQYHVWPHQWDQGFDUULHGDW)92&, ORVV UHFRJQLVHG LQ UHVSHFW RI D &*8 LV DOORFDWHG WR WKH FDUU\LQJ DPRXQWVRIWKHRWKHUDVVHWVRIWKH&*8 RUJURXSRI&*8V RQDSUR F. 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Revenue H[SORUDWRU\GULOOLQJFRVWV 5HYHQXH LV UHFRJQL]HG WR WKH H[WHQW WKDW LW LV SUREDEOH WKDW WKH Cost of Survey and prospecting activities conducted in the search HFRQRPLFEHQH¿WVZLOOÀRZWRWKH&RPSDQ\DQGWKHUHYHQXHFDQ RIRLODQGJDVDUHH[SHQVHGDVH[SORUDWLRQFRVWLQWKH\HDULQZKLFK be reliably measured. Revenue is measured at the fair value these are incurred If the project is not viable based upon technical of the consideration received or receivable, taking into account feasibility and commercial viability study, then all costs relating to FRQWUDFWXDOO\ GH¿QHG WHUPV RI SD\PHQW DQG H[FOXGLQJ WD[HV RU ([SORUDWRU\:HOOVLVH[SHQVHGLQWKH\HDUZKHQGHWHUPLQHGWREH duties collected on behalf of the government. dry. If the project is proved to be viable, then all costs relating to GULOOLQJRI([SORUDWRU\:HOOVVKDOOEHFRQWLQXHGWREHSUHVHQWHGDV D 5HYHQXH IURP VDOH RI JRRGV LV UHFRJQLVHG ZKHQ VLJQL¿FDQW risks and rewards of ownership in the goods are transferred ³,QWDQJLEOH$VVHWVXQGHU'HYHORSPHQW´ WRWKHEX\HU7KH&RPSDQ\UHFRJQL]HVUHYHQXHVRQWKHVDOH Development stage: RISURGXFWVQHWRIUHWXUQVGLVFRXQWVVDOHVLQFHQWLYHVUHEDWH Acquisition cost relating to projects under development stage are DPRXQWVFROOHFWHGRQEHKDOIRIWKLUGSDUWLHV VXFKDVVDOHVWD[ and payments or other consideration given to the customer SUHVHQWHGDV³&DSLWDOZRUNLQSURJUHVV´ that has impacted the pricing of the transaction. &XUUHQWO\DOOWKHZHOOVDUHXQGHUH[SORUDWLRQDQGGHYHORSPHQWVWDJH b) Revenue from sale of electrical energy is accounted for on G, Abandonment Costs the basis of billing as per the provisions of Power Purchase Agreement. $EDQGRQPHQW&RVWVDUHSURYLGHGDWWKHSUHVHQWYDOXHRIH[SHFWHG FRVWV WR VHWWOH WKH REOLJDWLRQ XVLQJ HVWLPDWHG FDVK ÀRZV DQG DUH c) Insurance, Duty Drawback and other claims are accounted for UHFRJQLVHGDVSDUWRIWKHFRVWRISDUWLFXODUDVVHW7KHFDVKÀRZVDUH as and when admitted by the appropriate authorities. GLVFRXQWHGDWDFXUUHQWSUHWD[UDWHWKDWUHÀHFWVWKHULVNVVSHFL¿F L. Recognition of dividend income, interest income or expense to the decommissioning liability.The unwinding of the discount is H[SHQVHGDVLQFXUUHGDQGUHFRJQLVHGLQWKHVWDWHPHQWRISUR¿WDQG 'LYLGHQG LQFRPH LV UHFRJQLVHG LQ SUR¿W DQG ORVV RQ WKH GDWH RQ ORVVDVD¿QDQFHFRVW7KHHVWLPDWHGIXWXUHFRVWVRIGHFRPPLVVLRQLQJ which the Company’s right to receive payment is established. are reviewed annually and adjusted as appropriate. Changes in the )RU DOO GHEW LQVWUXPHQWV PHDVXUHG DW DPRUWLVHG FRVW LQWHUHVW estimated future costs or in the discount rate applied are added to or income is recorded using the effective interest rate (EIR). EIR is the deducted from the cost of the asset. UDWHZKLFKH[DFWO\GLVFRXQWVWKHHVWLPDWHGIXWXUHFDVKUHFHLSWVRYHU H. Investments in Subsidiaries, Associates and Joint Ventures: WKH H[SHFWHG OLIH RI WKH ¿QDQFLDO LQVWUXPHQW WR WKH JURVV FDUU\LQJ DPRXQWRIWKH¿QDQFLDODVVHW:KHQFDOFXODWLQJWKH(,5WKHFRPSDQ\ Investments in subsidiaries, associates and joint ventures are HVWLPDWHVWKHH[SHFWHGFDVKÀRZVE\FRQVLGHULQJDOOWKHFRQWUDFWXDO FDUULHGDW)92&, WHUPV RI WKH ¿QDQFLDO LQVWUXPHQW IRU H[DPSOH SUHSD\PHQWV I. Inventories H[WHQVLRQVFDOODQGVLPLODURSWLRQV 7KHH[SHFWHGFUHGLWORVVHVDUH FRQVLGHUHGLIWKHFUHGLWULVNRQWKDW¿QDQFLDOLQVWUXPHQWDVLQFUHDVHG Inventories are measured at the lower of cost or net realisable value. VLJQL¿FDQWO\VLQFHLQLWLDOUHFRJQLWLRQ The cost of inventories is determined using the weighted average M. Foreign currency transactions method. 7UDQVDFWLRQV LQ IRUHLJQ FXUUHQFLHV DUH UHFRUGHG DW WKH H[FKDQJH 1HW UHDOLVDEOH YDOXH LV WKH HVWLPDWHG VHOOLQJ SULFH LQ WKH RUGLQDU\ rate prevailing on the date of transactions. course of business, less the estimated costs of completion and VHOOLQJH[SHQVHV Monetary assets and liabilities denominated in foreign currencies DUH WUDQVODWHG LQWR WKH IXQFWLRQDO FXUUHQF\ DW WKH H[FKDQJH UDWH - ,PSDLUPHQWRIQRQ¿QDQFLDODVVHWV DWWKHUHSRUWLQJGDWH1RQPRQHWDU\DVVHWVDQGOLDELOLWLHVWKDWDUH 7KH &RPSDQ\¶V QRQ¿QDQFLDO DVVHWV RWKHU WKDQ LQYHQWRULHV measured at fair value in a foreign currency are translated into the DQG GHIHUUHG WD[ DVVHWV DUH UHYLHZHG DW HDFK UHSRUWLQJ GDWH WR IXQFWLRQDOFXUUHQF\DWWKHH[FKDQJHUDWHZKHQWKHIDLUYDOXHZDV determine whether there is any indication of impairment. 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VSHFL¿FWRWKH&*8 RUWKHDVVHW 55 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) LL 3URYLGHQW)XQG'H¿QHG&RQWULEXWLRQ3ODQ WR WKH OHVVHH$OO RWKHU OHDVHV DUH FODVVL¿HG DV RSHUDWLQJ OHDVHV In determining whether an arrangement is, or contains a lease is 7KH &RPSDQ\ PDNHV VSHFL¿HG PRQWKO\ FRQWULEXWLRQV WRZDUGV based on the substance of the arrangement at the inception of the JRYHUQPHQW DGPLQLVWHUHG SURYLGHQW IXQG VFKHPH 2EOLJDWLRQV IRU OHDVH7KH DUUDQJHPHQW LV RU FRQWDLQV D OHDVH GDWH LI IXO¿OOPHQW FRQWULEXWLRQV WR GH¿QHG FRQWULEXWLRQ SODQV DUH UHFRJQLVHG DV DQ RIWKHDUUDQJHPHQWLVGHSHQGHQWRQWKHXVHRIDVSHFL¿FDVVHWRU HPSOR\HH EHQH¿W H[SHQVH LQ SUR¿W RU ORVV LQ WKH SHULRGV GXULQJ assets and the arrangement conveys a right to use the asset, even which the related services are rendered by employees. LIWKDWULJKWLVQRWH[SOLFLWO\VSHFL¿HGLQWKHDUUDQJHPHQW LLL *UDWXLW\'H¿QHG%HQH¿W3ODQ /HDVHG$VVHWV The Company provides for gratuity to all the eligible employees. The Assets held by the Company under leases that transfer to the EHQH¿WLVLQWKHIRUPRIOXPSVXPSD\PHQWVWRYHVWHGHPSOR\HHV Company substantially all of the risks and rewards of ownership on retirement, on death while in employment, or termination of DUHFODVVL¿HGDV¿QDQFHOHDVHV7KHOHDVHGDVVHWVDUHPHDVXUHG employment for an amount equivalent to 15 days salary payable initially at an amount equal to the lower of their fair value and the IRUHDFKFRPSOHWHG\HDURIVHUYLFH9HVWLQJRFFXUVRQFRPSOHWLRQRI present value of the minimum lease payments. The corresponding ¿YH\HDUVRIVHUYLFH liability to the lessor is included in the Balance Sheet. Subsequent to /LDELOLW\LQUHVSHFWRIJUDWXLW\LVGHWHUPLQHGXVLQJWKHSURMHFWHGXQLW initial recognition, the assets are accounted for in accordance with credit method with actuarial valuations as on the Balance Sheet the accounting policy applicable to that asset. GDWH DQG JDLQVORVVHV DUH UHFRJQLVHG LPPHGLDWHO\ LQ WKH 2WKHU $VVHWVKHOGXQGHURWKHUOHDVHVDUHFODVVL¿HGDVRSHUDWLQJOHDVHV &RPSUHKHQVLYH,QFRPH1HWLQWHUHVWH[SHQVHDQGRWKHUH[SHQVHV and are not recognised in the Company’s Standalone Ind AS UHODWHGWRGH¿QHGEHQH¿WSODQVDUHUHFRJQL]HGLQ6WDWHPHQWRI3UR¿W )LQDQFLDO6WDWHPHQWV DQG/RVV /HDVHSD\PHQWV :KHQWKHEHQH¿WVRIDSODQDUHFKDQJHGRUZKHQDSODQLVFXUWDLOHG WKHUHVXOWLQJFKDQJHLQEHQH¿WWKDWUHODWHVWRSDVWVHUYLFHRUWKHJDLQ Payments made under operating leases are recognised in the RU ORVV RQ FXUWDLOPHQW LV UHFRJQL]HG LPPHGLDWHO\ LQ 6WDWHPHQW RI 6WDWHPHQWRI3UR¿WDQG/RVVRQDVWUDLJKWOLQHEDVLVRYHUWKHWHUP 3UR¿WDQG/RVV7KH&RPSDQ\UHFRJQL]HVJDLQVDQGORVVHVRQWKH of the lease unless such payments are structured solely to increase VHWWOHPHQWRIDGH¿QHGEHQH¿WSODQZKHQWKHVHWWOHPHQWRFFXUV LQOLQHZLWKH[SHFWHGJHQHUDOLQÀDWLRQWRFRPSHQVDWHIRUWKHOHVVRU¶V H[SHFWHGLQÀDWLRQDU\FRVWLQFUHDVHVXFKLQFUHDVHVDUHUHFRJQLVHG LY /HDYH(QFDVKPHQW LQWKH\HDUVLQZKLFKVXFKEHQH¿WVDFFUXH /LDELOLW\ LQ UHVSHFW RI OHDYH HQFDVKPHQW LV GHWHUPLQHG XVLQJ WKH R. 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Provisions are IURP µSUR¿W EHIRUH WD[¶ DV UHSRUWHG LQ WKH 6WDWHPHQW RI 3UR¿W DQG PHDVXUHGDWWKHEHVWHVWLPDWHRIWKHH[SHQGLWXUHUHTXLUHGWR /RVVEHFDXVHRILWHPVRILQFRPHRUH[SHQVHVWKDWDUHWD[DEOHRU settle the present obligation at the Balance Sheet date. The GHGXFWLEOHLQRWKHU\HDUV LWHPVWKDWDUHQHYHUWD[DEOHRUGHGXFWLEOH H[SHQVHVUHODWLQJWRDSURYLVLRQLVSUHVHQWHGLQWKH6WDWHPHQW &XUUHQWLQFRPHWD[IRUFXUUHQWDQGSULRUSHULRGVLVUHFRJQLVHGDWWKH RI3UR¿WDQG/RVVQHWRIDQ\UHLPEXUVHPHQW DPRXQWH[SHFWHGWREHSDLGWRRUUHFRYHUHGIURPWKHWD[DXWKRULWLHV XVLQJWD[UDWHVDQGWD[ODZVWKDWKDYHEHHQHQDFWHGRUVXEVWDQWLYHO\ ii) Warranties enacted at the reporting date. Provision for the estimated liability in respect of warranty on &XUUHQWWD[DVVHWVDQGOLDELOLWLHVDUHRIIVHWRQO\LIWKH&RPSDQ\ sale of consumer electronics and home appliances products is made in the year in which the revenues are recognised, a) has a legally enforceable right to set off the recognised EDVHGRQWHFKQLFDOHYDOXDWLRQDQGSDVWH[SHULHQFH:DUUDQW\ amounts; and provision is accounted as current and non current provision. b) intends either to settle on a net basis, or to realise the asset 1RQFXUUHQWSURYLVLRQLVGLVFRXQWHGWRLWVSUHVHQWYDOXHDQG and settle the liability simultaneously. WKHVXEVHTXHQWXQZLQJLQJHIIHFWLVSDVVHGWKURXJK3UR¿WDQG /RVVDFFRXQWXQGHU)LQDQFH&RVW LL 'HIHUUHG7D[ P. 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E WKHGHIHUUHGWD[DVVHWVDQGWKHGHIHUUHGWD[OLDELOLWLHVUHODWH AC. New standards and interpretations not yet adopted WRLQFRPHWD[HVOHYLHGE\WKHVDPHWD[DWLRQDXWKRULW\RQWKH ,QG $6 5HYHQXH IURP &RQWUDFWV ZLWK &XVWRPHU WKH QHZ VDPHWD[DEOHHQWLW\ UHYHQXH UHFRJQLWLRQ VWDQGDUG KDV EHHQ QRWL¿HG E\ 0LQLVWU\ RI S. Borrowing Costs Corporate Affairs (MCA) on March 28, 2018 and will be effective from April 01, 2018. Hence, from April 1, 2018, revenue recognition %RUURZLQJ FRVWV DUH LQWHUHVW DQG RWKHU FRVWV LQFOXGLQJ H[FKDQJH RI WKH &RPSDQ\ VKDOO EH GULYHQ E\ WKLV VWDQGDUG ,1' $6 GLIIHUHQFHVUHODWLQJWRIRUHLJQFXUUHQF\ERUURZLQJVWRWKHH[WHQWWKDW provides guidance on how the entity shall recognise revenue to they are regarded as an adjustment to interest costs) incurred in depict the transfer of promised goods or services to customers in an connection with the borrowing of funds. Borrowing costs directly DPRXQWWKDWUHÀHFWVWKHFRQVLGHUDWLRQWRZKLFKWKHHQWLW\H[SHFWVWR attributable to acquisition or construction of a qualifying asset EHHQWLWOHGLQH[FKDQJHIRUWKRVHJRRGVRUVHUYLFHV7KLVDFFRXQWLQJ which necessarily take a substantial period of time to get ready for FKDQJHZLOOEULQJDERXWVLJQL¿FDQWFKDQJHVLQWKHZD\FRPSDQLHV their intended use or sale are capitalised as part of the cost of that recognise, present and disclose their revenue. The Company is asset until such time as the assets are substantially ready for their currently evaluating the effect of this standard. LQWHQGHGXVHRUVDOH2WKHUERUURZLQJFRVWVDUHUHFRJQLVHGDVDQ H[SHQVHLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG $OVR$SSHQGL[ % WR ,QG$6 IRUHLJQ FXUUHQF\ WUDQVDFWLRQV DQG DGYDQFHFRQVLGHUDWLRQZDVQRWL¿HGDORQJZLWKWKHVDPHQRWL¿FDWLRQ 7 7UDQVODWLRQRIWKH¿QDQFLDOVWDWHPHQWVRIIRUHLJQEUDQFK ZKLFK FODUL¿HV WKH GDWH RI WKH WUDQVDFWLRQ IRU WKH SXUSRVH RI i) Revenue items are translated at average rates. GHWHUPLQLQJ WKH H[FKDQJH UDWH WR XVH RQ LQLWLDO UHFRJQLWLRQ RI WKH UHODWHGDVVHWH[SHQVHRULQFRPHZKHQDQHQWLW\KDVUHFHLYHGRU LL 2SHQLQJ DQG FORVLQJ LQYHQWRULHV DUH WUDQVODWHG DW WKH UDWH paid advance consideration in a foreign currency. The Company prevalent at the commencement and close of the accounting year, respectively. GRHVQRWH[SHFWDQ\PDWHULDOLPSDFWRQDFFRXQWRIWKLVFKDQJH Explanation of transition to Ind AS: LLL )L[HG DVVHWV DUH WUDQVODWHG DW WKH H[FKDQJH UDWH DV RQ WKH GDWH RI WKH WUDQVDFWLRQ 'HSUHFLDWLRQ RQ ¿[HG DVVHWV LV Ind AS 101 requires an entity to reconcile equity and total comprehensive translated at the rates used for translation of the value of the income for prior periods. The following table represents the equity assets to which it relates. UHFRQFLOLDWLRQIURPSUHYLRXV*$$3WR,QG$6 LY 2WKHUFXUUHQWDVVHWVDQGFXUUHQWOLDELOLWLHVDUHWUDQVODWHGDWWKH $VVWDWHGLQ1RWH7KH&RPSDQ\KDVSUHSDUHGWKHVH¿QDQFLDOVWDWHPHQWV closing rate. IRU WKH \HDU HQGHG 0DUFK LV WKH ¿UVW ¿QDQFLDO VWDWHPHQW LQ U. Government Grant DFFRUGDQFH ZLWK ,QG $6 ,Q SUHSDULQJ WKHVH ¿QDQFLDO VWDWHPHQWV WKH &RPSDQ\¶VRSHQLQJEDODQFHVKHHWZDVSUHSDUHGDVDW-DQXDU\ *UDQWVDUHUHFRJQLVHGZKHQWKHUHLVUHDVRQDEOHDVVXUDQFHWKDWWKH WKH&RPSDQ\¶VGDWHRIWUDQVLWLRQWR,QG$67KLVQRWHH[SODLQVWKHSULQFLSDO grant will be received and conditions attached to them are complied DGMXVWPHQWVPDGHE\WKH&RPSDQ\LQUHVWDWLQJLWV,QGLDQ*$$3¿QDQFLDO ZLWK*UDQWVUHODWHGWRGHSUHFLDEOHDVVHWVDUHWUHDWHGDVGHIHUUHG VWDWHPHQWVLQFOXGLQJWKHEDODQFHVKHHWDVDW-DQXDU\DQGWKH LQFRPHZKLFKLVUHFRJQLVHGLQWKH6WDWHPHQWRI3UR¿WDQG/RVVRYHU ¿QDQFLDOVWDWHPHQWVDVDWDQGIRUWKHSHULRGHQGHG0DUFK the period of useful life of the assets and in the proportions in which Optional exemptions availed and mandatory exceptions depreciation on related assets is charged. ,QSUHSDULQJWKH¿QDQFLDOVWDWHPHQWVWKH&RPSDQ\KDVDSSOLHGWKHEHORZ 9 3UHPLXPRQ5HGHPSWLRQRI%RQGV'HEHQWXUHV PHQWLRQHGRSWLRQDOH[HPSWLRQVDQGPDQGDWRU\H[FHSWLRQV 3UHPLXP RQ 5HGHPSWLRQ RI %RQGV'HEHQWXUHV DUH ZULWWHQ RII WR A) Optional exemptions availed Securities Premium Account. W. Share Issue Expenses 6LWH5HVWRUDWLRQ&RVW$VVHWUHWLUHPHQWREOLJDWLRQ 7KH&RPSDQ\KDVXVHGWKHH[HPSWLRQLQ3DUDJUDSK'$ E RI,QG 6KDUHLVVXHH[SHQVHVDUHZULWWHQRIIWR6HFXULWLHV3UHPLXP$FFRXQW AS 101 and has measured decommissioning, restoration and similar X. Earnings per share liabilities as at the date of transition to Ind ASs in accordance with 7KH EDVLF (DUQLQJV 3HU 6KDUH ³(36´ LV FRPSXWHG E\ GLYLGLQJ ,QG$6DQGUHFRJQLVHGLUHFWO\LQUHWDLQHGHDUQLQJVDQ\GLIIHUHQFH between that amount and the carrying amount of those liabilities at WKHQHWSUR¿W ORVV DIWHUWD[IRUWKH\HDUDWWULEXWDEOHWRWKHHTXLW\ shareholders by the weighted average number of equity shares WKHGDWHRIWUDQVLWLRQWR,QG$6VGHWHUPLQHGXQGHU,*$$3 outstanding during the year. The Company has no potentially B) Mandatory Exceptions dilutive equity shares. 1) Estimates Y. Excise and Custom Duty 2QDVVHVVPHQWRIWKHHVWLPDWHVPDGHXQGHUWKH3UHYLRXV*$$3 ([FLVH'XW\LQUHVSHFWRI¿QLVKHGJRRGVO\LQJLQWKHIDFWRU\SUHPLVHV ¿QDQFLDO VWDWHPHQWV WKH &RPSDQ\ KDV FRQFOXGHG WKDW WKHUH and Custom Duty on goods lying in custom bonded warehouse are is no necessity to revise the estimates under Ind AS, as there is provided for and included in the valuation of inventory. no objective evidence of an error in those estimates. However, = &(19$79DOXH$GGHG7D[ estimates that were required under Ind AS but not required under 3UHYLRXV*$$3DUHPDGHE\WKH&RPSDQ\IRUWKHUHOHYDQWUHSRUWLQJ &(19$79DOXH$GGHG7D[EHQH¿WLVDFFRXQWHGIRUE\UHGXFLQJWKH GDWHVUHÀHFWLQJFRQGLWLRQVH[LVWLQJDVDWWKDWGDWH SXUFKDVHFRVWRIWKHPDWHULDOV¿[HGDVVHWVVHUYLFHV 57 Annual Report 2017-18 &ODVVL¿FDWLRQDQGPHDVXUHPHQWRI¿QDQFLDODVVHWV 2) Accounting for transaction costs on borrowings as per effective interest method As permited under Ind AS 101, Company has determined the FODVVL¿FDWLRQRI¿QDQFLDODVVHWVEDVHGRQIDFWVDQGFLUFXPVWDQFHV 8QGHU SUHYLRXV *$$3 GLUHFWO\ DWWULEXWDEOH WUDQVDFWLRQ FRVWV WKDW H[LVW RQ WKH GDWH RI WUDQVLWLRQ ,Q OLQH ZLWK ,QG $6 ZHUH FKDUJHG WR WKH 6WDWHPHQW RI 3UR¿W RU /RVV RU FDSLWDOLVHG DV PHDVXUHPHQWRI¿QDQFLDODVVHWVDFFRXQWHGDWDPRUWLVHGFRVWKDV part of property, plant and equipment in the year of disbursement EHHQGRQHUHWURVSHFWLYHO\H[FHSWZKHUHWKHVDPHLVLPSUDFWLFDEOH of the loan. As per the requirements of Ind AS, the Company has measured the borrowings at amortised cost (including the directly Reconciliation of statement of Equity as previously reported under attributable transaction costs) based on the effective interest rate of IGAAP and Ind AS the borrowings. Accordingly, suitable restatement adjustments have EHHQPDGHLQWKH5HVWDWHG6XPPDU\6WDWHPHQWRI3UR¿WDQG/RVV (` in Million) and Property, plant and equipment. Particulars Note As at As at 3) Fair value movement of FVOCI investments No. March 31, January 1, 2017 2016 8QGHUSUHYLRXV*$$3QRQFXUUHQWLQYHVWPHQWVZHUHFDUULHGDWFRVW OHVVSURYLVLRQIRUGLPLQXWLRQ RWKHUWKDQWHPSRUDU\ 8QGHU,QG$6 Total Equity as per previous 83,910.70 103,067.45 investment in equity shares (other than subsidiaries and associates) GAAP are measured at fair value, with fair value changes being routed Amortised cost measurement of 2 through the other comprehensive income. borrowings 4) Foreign Currency Convertible Bonds (FCCBs) (TXLW\FRPSRQHQWRI))&% 4 recognised separately 7KH FRPSDQ\ KDG LVVXHG )&&%V ZKLFK ZHUH PRGL¿HG LQ$XJXVW 7KHVHERQGVDUHLQWKHQDWXUHRIFRPSXQG¿QDQFLDOLQVWUXPHQW )DLUYDOXDWLRQRILQYHVWPHQWV 3 DQG WKH HTXLW\ DQG OLDELOLW\ FRPSRQHQWV KDYH EHHQ UHÀHFWHG )DLUYDOXDWLRQRI3URSHUW\SODQW 1 21,482.05 DFFRUGLQJO\ 6XEVHTXHQWO\ WKH LQWHUHVW FRVW DQG IRUHLJQ H[FKDQJH and equipment ÀXFWXDWLRQVKDYHEHHQUHÀHFWHGWKURXJK3UR¿WDQG/RVVDFFRXQW Provision for site restoration 5 (131.81) 5) Asset Retirement Obligation liability The site restoration cost has been present valued and subsequent 2WKHUV 8 15.83 producing property asset has been created under Intangible assets. 'HIHUUHGWD[LPSDFWRQDERYH (5,043.88) Interest accretion on the present valuation of the obligation and adjustments GHSUHFLDWLRQRQWKHSURGXFLQJSURSHUW\KDVEHHQUHÀHFWHGWKURXJK Total Equity as per Ind AS 98,330.99 119,218.81 3UR¿WDQG/RVVDFFRXQW Reconciliation of total comprehensive income as previously reported 6) Deferred Tax under IGAAP and Ind AS 3UHYLRXV *$$3 UHTXLUHV GHIHUUHG WD[ WR EH UHFRJQLVHG ZLWK (` in Million) reference to the income statement approach. Ind AS 12 requires HQWLWLHV WR GHWHUPLQH GHIHUUHG WD[HV ZLWK UHIHUHQFH WR WKH EDODQFH Particulars Note For the 15 sheet approach, which focuses on temporary differences between No. months ended the carrying amount of an asset or liability in the balance sheet and March 31, 2017 LWVWD[EDVH7KHDSSOLFDWLRQRI,QG$6DSSURDFKKDVUHVXOWHGLQ 1HWSUR¿WDIWHUWD[DVSHUSUHYLRXV (19,156.75) UHFRJQLWLRQRIGHIHUUHGWD[UHODWHGDGMXVWPHQWVLQUHODWLRQWRFHUWDLQ GAAP LWHPVVXFKDVIDLUYDOXDWLRQRIODQGLQGH[DWLRQEHQH¿WRQODQGIDLU value of investments which were not required to be considered under Amortised cost measurement of 2 (384.80) the income statement approach. borrowings )DLUYDOXDWLRQRI3URSHUW\SODQWDQG 1 (2,235.50) 7) Actuarial gain and loss equipment 8QGHU SUHYLRXV *$$3 WKH FRPSDQ\ UHFRJQLVHG UHPHDVXUHPHQW Provision for Site restoration liability 5 (55.82) RQ GH¿QHG EHQH¿W SODQV RI WKH FRPSDQ\ ZHUH UHFRJQLVHG LQ WKH VWDWHPHQW RI 3UR¿W RU /RVV +RZHYHU DV SHU WKH UHTXLUHPHQWV RI 2WKHUV 8 ,QG$6WKHFRPSDQ\KDVUHFRJQLVHGWKHVHLQ2WKHUFRPSUHKHQVLYH 'HIHUUHGWD[LPSDFWRQDERYHDGMXVWPHQWV income. Actuarial loss on remeasurement of 3.58 8) Others GH¿QHGEHQH¿WREOLJDWLRQ 2WKHULPSDFWVLQFOXGHLPSDFWVRQ¿QDQFLDOJXDUDQWHHDQGZDUUDQW\ 'HIHUUHGWD[LPSDFWRQDERYH (1.24) H[SHQVHV $W WKH GDWH RI WUDQVLWLRQ DOO WKH ¿QDQFLDO JXDUDQWHHV 3UR¿W ORVV IRUWKHSHULRGDVSHU,QG$6 (20,800.17) KDYH EHHQ LGHQWL¿HG DV ¿QDQFLDO LQVWUXPHQWV DV SHU ,QG$6 )DLUYDOXDWLRQRILQYHVWPHQWV 3 (25.81) Commission income accretion on these guarantees has been recorded under Deferred Commission income and subsequent Actuarial loss on remeasurement of (3.58) GH¿QHGEHQH¿WREOLJDWLRQ XQZLQGLQJLVUHFRUGHGWKURXJK3UR¿WDQG/RVV 'HIHUUHGWD[LPSDFWRQDERYH 1.24 ([WHQGHG ZDUUDQW\ SURYLVLRQ KDV EHHQ UHÀHFWHG DV QRQ FXUUHQW warranty provision which was earlier a part of current provision Total comprehensive income as per (20,828.32) XQGHU,*$$36XEVHTXHQW\WKHQRQFXUUHQWSURYLVLRQLVGLVFRXQWHG Ind AS to its present value and subsequent unwinding of the interest cost is DGMXVWHGWKURXJKWKHVWDWHPHQWRISUR¿WDQGORVV 5HFRQFLOLDWLRQRIFDVKÀRZV 7KH WUDQVDFWLRQ IURP SUHYLRXV *$$3 WR ,QG$6 KDV QRW KDG D PDWHULDO LPSDFWRQWKHVWDWHPHQWRIFDVKÀRZV Notes to the reconciliation: 1) Property, Plant and Equipment 2QWKHGDWHRIWUDQVLWLRQWKHFRPSDQ\KDVFKRVHQWRUHÀHFWIDLUYDOXH as the deemed cost of Property, Plant and Equipment. 58 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Note 2 Property, Plant and Equipment (` in Million) Particulars Freehold Leasehold Building Leasehold Plant and Furnace Electrical Computers Furniture 2I¿FH Vehicles Total Land Land Improve- Machinery Installa- and Fix- Equip- ments tion tures ments 'HHPHG&RVWDVDW-DQXDU\ 1,848.04 39.33 113,533.88 221.08 Additions 0.31 4.29 12.91 1.02 4.89 Disposals 0.01 1.39 1.10 19.58 Cost as at March31, 2017 (A) 11,577.26 1,848.04 12,030.66 39.33 114,921.06 1,377.39 178.83 288.07 220.71 361.74 1,288.70 144,131.79 Accumulated depreciation as at 39.15 881.98 -DQXDU\ Depreciation for the period 9,433.31 Disposals 152.33 0.01 1.59 1.00 1.01 18.34 510.28 Accumulated depreciation as at - 28.79 2,356.91 39.15 69,431.03 1,364.29 159.39 269.16 193.83 332.44 983.91 75,158.90 March 31, 2017 (B) Net carrying amount as at March 11,577.26 1,819.25 9,673.75 0.18 45,490.03 13.10 19.44 18.91 26.88 29.30 304.79 68,972.89 31, 2017 (A) - (B) Cost as at April 1, 2017 1,848.04 39.33 Additions 1.01 2.12 2.80 90.29 Disposals 1.50 139.90 21.21 238.98 Cost as at March 31, 2018 (A) 11,577.26 1,846.54 12,030.66 39.33 114,978.93 1,237.49 178.23 267.87 207.57 351.58 1,049.72 143,765.18 Accumulated depreciation as at 39.15 159.39 193.83 332.44 983.91 April 1, 2017 Depreciation for the year 23.04 3.50 5.89 5.43 80.98 Disposals 0.05 138.50 0.59 20.89 Accumulated depreciation as at - 51.78 3,059.72 39.15 76,651.49 1,225.79 162.30 255.99 184.94 325.27 854.43 82,810.86 March 31, 2018 (B) Net carrying amount as at March 11,577.26 1,794.76 8,970.94 0.18 38,327.44 11.70 15.93 11.88 22.63 26.31 195.29 60,954.32 31, 2018 (A) - (B) 7KH&RPSDQ\KDVGHFLGHGWRUHÀHFWIDLUYDOXHIRU/DQG OHDVHKROGDQGIUHHKROG DQG%XLOGLQJDVWKHGHHPHGFRVWDVSHU,QG$67KHIDLUYDOXDWLRQLPSDFWIRU-DQXDU\LV` 11,418.25 Million for freehold land, `0LOOLRQIRUOHDVHKROGODQGDQG` 0LOOLRQIRU%XLGOLQJ7KHQXPEHUVDUHJURVVDQGGRQRWLQFOXGHWD[HIIHFW Note 3 Other Intangible Assets (` in Million) Particulars Computer Software Producing Properties *URVV%ORFNDVRQVW'HFHPHU Accumulated depreciation 5,921.42 1HWEORFNDVRQVW'HFHPEHU 12.13 289.41 'HHPHG&RVWDVDW-DQXDU\ 12.13 289.41 Additions 55.44 'LVSRVDOVDGMXVWPHQWV Cost as at March 31, 2017 (A) 16.84 181.47 Depreciation for the period 110.91 Disposals Accumulated depreciation as at March 31, 2017 (B) 6.51 110.91 Net carrying amount as at March 31, 2017 (A) - (B) 10.33 70.56 Cost as at April 1, 2017 16.84 181.47 Additions 22.51 'LVSRVDOVDGMXVWPHQWV 4.82 (55.82) Cost as at March 31, 2018 (A) 12.19 259.80 Accumulated depreciation as at April 1, 2017 6.51 110.91 Depreciation for the year 3.00 133.08 Disposals 4.82 Accumulated depreciation as at March 31, 2018 (B) 4.69 243.99 Net carrying amount as at March 31, 2018 (A) - (B) 7.50 15.81 7KH&RPSDQ\KDVDYDLOHGWKHGHHPHGFRVWH[HPSWLRQLQUHODWLRQWRWKHLQWDQJLEOHDVVHWVRQWKHGDWHRIWUDQVLWLRQDQGKHQFHWKHQHWEORFNFDUU\LQJ amount has been considered as the gross block carrying amount on that date. 59 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Note 4 Financial Assets - Non Current (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Investments A) Investment in subsidiaries, joint ventures and associates a) Investment in equity of subsidiaries Unquoted &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG 0.10 0.10 0LGGOH(DVW$SSOLDQFHV//& 3LSDYDY(QHUJ\3ULYDWH/LPLWHG 5,500.00 5,500.00 5,500.00 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG 0.10 0.10 0.10 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG 0.11 0.11 0.11 9LGHRFRQ(OHFWURQLFV 6KHQ]KHQ /LPLWHG &KLQHVHQDPH:HL\RXNDQJ(OHFWURQLF 6KHQ]KHQ &R/WG 9LGHRFRQ(QHUJ\/LPLWHG 1,000.00 1,000.00 1,000.00 9LGHRFRQ*OREDO/LPLWHG 48.92 48.92 48.92 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 52,254.23 929//LPLWHG 9,500.00 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 14,001.20 14,001.20 13,985.45 b) Investment in equity of joint venture and associate Unquoted 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG 0.05 0.05 0.05 /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG 5DGLXP$SSOLDQFHV3ULYDWH/LPLWHG 0.03 0.03 0.03 Total (A) 95,245.55 100,810.15 88,314.44 B) Other investments a) Quoted Investments measured at fair value through other comprehensive income Investments in Equity Instruments 102.94 123.00 b) Unquoted Investments measured at fair value through other comprehensive income Investments in Equity Instruments 580.19 503.83 ,QYHVWPHQWVPHDVXUHGDWIDLUYDOXHWKURXJKSUR¿WRUORVV ,QYHVWPHQWVLQ&RRSHUDWLYHEDQN 0.52 Investments measured at amortised cost Investment in Redeemable Preference Shares 1,055.18 Total (B) 1,740.64 1,746.45 1,690.03 Total (A+B) 96,986.19 102,556.60 90,004.47 Aggregate amount of Quoted Investments 102.94 123.00 Aggregate Market value of Quoted Investments 102.94 123.00 $JJUHJDWHDPRXQWRI8QTXRWHG,QYHVWPHQWV 60 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 5 Financial Assets - Non Current Loans Sundry Deposits 248.99 218.98 /RDQVDQG$GYDQFHVWR5HODWHG3DUWLHV 10,549.33 11,444.54 /RDQVDQG$GYDQFHVWR2WKHUV 106,061.35 35,091.70 39,072.96 Note 6 Financial Assets - Non Current Others %DQNEDODQFHVRWKHUWKDQ D EHORZ )L[HGGHSRVLWVZLWKPDWXULW\PRUHWKDQPRQWKV 39.25 90.95 (Held as margin money for credit facilities and other commitments) 39.25 90.95 108.79 Note 7 Other non-current assets Capital advances 1.42 1.02 Balance with government authorities 439.32 340.52 440.74 471.00 352.08 Note 8 Inventories (valued at lower of cost or net realisable value) Raw materials including consumables, stores and spares 15,048.52 Materials in transit and in bonded warehouse :RUNLQSURFHVV 1,294.92 1,425.49 )LQLVKHGJRRGVDQGVWRFNLQWUDGH 4,338.03 Drilling and production materials 402.20 Crude oil 59.23 51.92 14,077.09 28,635.19 23,592.01 Note 9 Financial Assets - Current Current Investments Unquoted ,QYHVWPHQWVDWIDLUYDOXHWKURXJKSUR¿WRUORVV ,QYHVWPHQWLQXQLWVRI0XWXDO)XQGV - 52.00 - - 52.00 Note 10 Financial Assets - Current Trade receivables Considered good 24,003.15 28,585.19 Considered doubtful 249.10 10,983.38 28,834.29 /HVV 3URYLVLRQIRUGRXEWIXOGHEWV 249.10 7,410.13 24,003.15 28,585.19 Note 11a Financial Assets - Current Cash and cash equivalents Cash on hand 3.54 5.23 &KHTXHV'UDIWVRQKDQGLQWUDQVLW 0.10 Balance with banks in current accounts 2,132.14 310.52 1,398.81 2,247.64 441.51 1,407.27 61 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 11b Financial Assets - Current %DQNEDODQFHVRWKHUWKDQ D DERYH In Dividend warrant accounts 8.23 9.42 ,Q)L[HGGHSRVLWVHDUPDUNHGWRZDUGVVLWHUHVWRUDWLRQFRVWV 1,388.50 1,295.41 1,199.33 ,Q)L[HGGHSRVLWVOLHQLQIDYRXURIWKH5HJLVWUDU6XSUHPH&RXUWRI,QGLD ,Q2WKHU)L[HGGHSRVLWV0DWXULW\PRQWKVRUOHVV Held as margin money for credit facilities and other commitments 1,159.02 1,344.51 Provided as security for overdraft facility 2,039.59 5,120.28 25,936.54 Note 12 Financial Assets - Current Loans 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVSHFL¿HG Sundry deposits 8.22 /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV 22.08 41.99 /RDQVDQGDGYDQFHVWRRWKHUV 41,920.28 41,947.10 104,822.81 105,478.48 Note 13 Financial Assets - Current Others Insurance claim receivable 2WKHUUHFHLYDEOHVIURPUHODWHGSDUWLHV 342.19 2WKHUUHFHLYDEOHV 112.28 737.89 515.14 880.30 Note 14 Other current assets Balance with government authorities 631.67 64.05 47.45 Note 15 Share Capital a) Details of the authorised, issued, subscribed and paid-up share capital as below: (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 i) Authorised Capital 0DUFK -DQXDU\ 13,000.00 13,000.00 13,000.00 1,300,000,000) equity shares of the par value of ` 10 each 0DUFK -DQXDU\ 2,000.00 2,000.00 2,000.00 20,000,000) redeemable preference shares of ` 100 each 15,000.00 15,000.00 15,000.00 ii) ,VVXHG6XEVFULEHGDQG3DLGXS 0DUFK -DQXDU\ 3,344.59 3,344.59 3,344.59 HTXLW\VKDUHVRI` 10 each fully paid up 3,344.59 3,344.59 3,344.59 E 5HFRQFLOLDWLRQRIWKHQXPEHURIVKDUHVRXWVWDQGLQJDWWKHEHJLQQLQJDQGHQGRIWKH\HDUSHULRG As at March 31, 2018 As at March 31, 2017 As at January 1, 2016 1RRI6KDUHV ` in Million 1RRI6KDUHV ` in Million 1RRI6KDUHV ` in Million $WWKHEHJLQQLQJRIWKH\HDUSHULRG 3,344.59 3,344.59 3,344.59 ,VVXHGGXULQJWKH\HDUSHULRG $WWKHHQGRIWKH\HDUSHULRG 3,344.59 3,344.59 3,344.59 62 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) c) Rights, Preferences and restrictions attached to equity shares: i) The company has a single class of equity shares referred to as equity shares having par value of `SHUVKDUH(DFKKROGHURIHTXLW\ shares is entitled to equal right of voting and dividend. ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. d) Details of Shareholders holding more than 5% Shares: 1DPHRI6KDUHKROGHUV As at March 31, 2018 As at March 31, 2017 As at January 1, 2016 1RRI6KDUHV % of Holding 1RRI6KDUHV % of Holding 1RRI6KDUHV % of Holding a) 'RPH%HOO(OHFWURQLFV 4.91 5.90 ,QGLD3ULYDWH/LPLWHG b) Shree Dhoot Trading DQG$JHQFLHV/LPLWHG (Amalgamated with Electroparts India 3ULYDWH/LPLWHG c) 9LGHRFRQ5HDOW\DQG 51,084,195 19.12 19.34 ,QIUDVWUXFWXUHV/LPLWHG d) Deutsche Bank Trust Company Americas (As depository of *OREDO'HSRVLWV5HFHLSWV (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 16 Other equity Capital Reserve Capital Redemption Reserve Securities Premium Account %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH 1,222.83 (TXLW\FRPSRQHQWRIFRPSRXQG¿QDQFLDOLQVWUXPHQW 24.31 24.31 24.31 (TXLW\LQVWUXPHQWVWKURXJK2&, (4,012.99) (10.41) *HQHUDO5HVHUYH Retained Earnings 38,426.84 94,986.40 115,874.22 ,QFOXGHVIDLUYDOXDWLRQLPSDFWRI/DQGDQG%XLOGLQJ`0LOOLRQIRU0DUFK` 0LOOLRQLQ0DUFKDQG`0LOOLRQLQ -DQXDU\6XFKDPRXQWVDUHQRWDYDLODEOHIRUGLVWULEXWLRQDVGLYLGHQG Capital Reserve Capital reserve represents subsidy received, reserves transferred on account of amalgamation. Capital Redemption Reserve Capital Redemption reserve represents amount set aside by the company for future redemption of capital. Securities Premium Account 7KHDPRXQWUHFHLYHGLQH[FHVVRIIDFHYDOXHRIWKHHTXLW\VKDUHVLVUHFRJQLVHGLQ6HFXULWLHV3UHPLXP5HVHUYH7KHUHVHUYHLVXWLOLVHGLQDFFRUGDQFH with the provisions of the Companies Act. %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH 7KH&RPSDQ\KDGLVVXHG)RUHLJQFXUUHQF\FRQYHUWLEOHERQGVDQGDVSHUWKHSURYLVLRQVRIWKH&RPSDQLHV$FWLVUHTXLUHGWRFUHDWHGHEHQWXUH UHGHPSWLRQUHVHUYHRXWRIWKHSUR¿WVRIWKH&RPSDQ\DYDLODEOHIRUWKHSD\PHQWRIGLYLGHQG (TXLW\FRPSRQHQWRIFRPSRXQG¿QDQFLDOLQVWUXPHQW The account represents the equity component of foreign currency convertible bonds calculated as per Ind AS 109. Equity instruments through OCI This account represents the fair value changes in the investments calculated at every reporting date as per Ind AS 109 General Reserve 7KH&RPSDQ\KDVWUDQVIHUUHGDSRUWLRQRIWKHQHWSUR¿WRIWKH&RPSDQ\WRJHQHUDOUHVHUYHSXUVXDQWWRWKHHDUOLHUSURYLVLRQVRI&RPSDQLHV$FW Retained Earnings 7KLVDFFRXQWLQFOXGHVWKHDPRXQWRISUR¿WDQGORVVDFFRXQWWUDQVIHUUHGWRWKHHTXLW\ 63 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) As at As at As at March 31, 2018 0DUFK -DQXDU\ Note 17 Financial Liabilities Non current borrowings i) Secured Rupee term loans from banks - 5XSHHWHUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV - 9HKLFOHORDQIURPEDQNV - )RUHLJQFXUUHQF\FRQYHUWLEOHERQGV - ii) Unsecured Rupee term loans from banks - - 171,619.12 185,183.93 Details of Non-current borrowings: ` in Million Carrying rate of interest Particulars March 31, 2018 0DUFK March 31, 2018 0DUFK 2WKHU'HWDLOV Principal outstanding Secured 7HUPORDQVIURPEDQNV¿QDQFLDOLQVWLWXWLRQV 181,048.91 12.4% to 14.4% 12.4% to 14.4% 5HIHUQRWH D EHORZ 9HKLFOHORDQIURPEDQNV 13.84 9.5% to 13.0% 9.5% to 13.0% 5HIHUQRWH E EHORZ )RUHLJQFXUUHQF\FRQYHUWLEOHERQGV 4.3% 4.3% 5HIHUQRWH F EHORZ 7RWDO3ULQFLSDO2XWVWDQGLQJ /HVV &XUUHQWPDWXULW\RIQRQFXUUHQW 21,119.30 borrowings $GG ,QWHUHVWDFFUXHGDQGGXHDFFUXHGEXWQRW due /HVV ,QG$6UHFODVVL¿FDWLRQDGMXVWPHQWV D 'HWDLOVUHODWLQJWRWHUPORDQVIURPEDQNVDQG¿QDQFLDOLQVWLWXWLRQV L 7KH&RPSDQ\DORQJZLWKRWKHUDI¿OLDWHVHQWLWLHV FROOHFWLYHO\UHIHUUHGWRDVµ2EOLJRUV¶DQGLQGLYLGXDOO\UHIHUUHGWRDVµ%RUURZHU¶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¿QDQFLDODVVLVWDQFHIURPFRQVRUWLXPRI %DQNV)LQDQFLDO,QVWLWXWLRQV 97//HQGHUV ,WKDVEHHQDJUHHGEHWZHHQWKH57//HQGHUVDQG97//HQGHUVWRVKDUHWKHVHFXULW\DYDLODEOHWR WKH57//HQGHUVXQGHUWKH57/$JUHHPHQW LQFOXGLQJWKHUHFHLYDEOHVIURPHDFKRIWKH2EOLJRUV ZLWKWKH97//HQGHUVXQGHUWKH97/IDFLOLW\ DJUHHPHQW LQFOXGLQJWKHUHFHLYDEOHVIURP97/ RQDUHFLSURFDO¿UVWpari-passuFKDUJHEDVLV7KXV97/LVDOVRLQGXFWHGDVFRREOLJRULQWKH VDLGIDFLOLW\DJUHHPHQWZLWKWKHFRQVRUWLXPRI57//HQGHUV /RDQVDPRXQWLQJWR` 0LOOLRQ $VDW0DUFK`0LOOLRQ DUHVHFXUHGE\¿UVWpari-passu charge on all present DQGIXWXUHWDQJLEOHLQWDQJLEOHDVVHWV H[FOXGLQJWKH,GHQWL¿HG3URSHUWLHV RIHDFKRIWKH%RUURZHU¿UVWpari-passu charge on the Trust and 5HWHQWLRQ$FFRXQWVRIWKH%RUURZHUVVHFRQGSDULSDVVXFKDUJHRQ,GHQWL¿HG$VVHWVRI9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG¶V 9++/ VXEVLGLDULHVWKURXJKSOHGJHRIHQWLUHVKDUHKROGLQJRI9++/LQWKHVHRYHUVHDVVXEVLGLDULHVVHFRQGFKDUJHRQSOHGJHRIVKDUHVRI 929//LPLWHGDQG9++/VHFRQGpari-passuFKDUJHRQ9++/ VVKDUHRIFDVKÀRZVIURP,GHQWL¿HG$VVHWVDQGVHFRQGpari-passucharge over FXUUHQWDVVHWVRIHDFKRIWKH%RUURZHUV7KH5XSHH7HUP/RDQVDUHDOVRVHFXUHGE\¿UVWUDQNLQJSOHGJHRYHUVSHFL¿HGQXPEHUVRIHTXLW\ VKDUHVRI9LGHRFRQ,QGXVWULHV/LPLWHG7UHQG(OHFWURQLFV/LPLWHGDQG9DOXH,QGXVWULHV/LPLWHGKHOGE\WKHSURPRWHUVWKHSHUVRQDOJXDUDQWHH RI0U9HQXJRSDO1'KRRW0U3UDGLSNXPDU1'KRRW0U5DMNXPDU1'KRRWDQG¿UVWpari-passuFKDUJHRQµ9LGHRFRQ¶EUDQG $OVR5HIHU 1RWH LL /RDQVDPRXQWLQJWR`0LOOLRQ $VDW0DUFK`0LOOLRQ DUHVHFXUHGE\¿UVWSDULSDVVXFKDUJHRQERRNGHEWVRI FRQVXPHUHOHFWURQLFVDQGKRPHDSSOLDQFHVGLYLVLRQZKLFKDUHQRWFKDUJHGWREDQNHUVIRUVHFXULQJZRUNLQJFDSLWDOORDQVDQG¿UVWpari-passu FKDUJHRQHTXLWDEOHPRUWJDJHRIVSHFL¿HGSURSHUWLHVRZQHGE\WKH&RPSDQ\DQGRZQHGE\RWKHUHQWLWLHV7KHORDQVDUHIXUWKHUVHFXUHG E\SHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRWDQGFRUSRUDWHJXDUDQWHHRIWKHHQWLWLHVZKRVHSURSHUWLHV have been mortgaged. 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The details of continuing defaults as at March 31, 2018 are as follows: Particulars ` in Million 3ULQFLSDODPRXQWRI/RDQV ,QWHUHVWRQ/RDQV 30,038.25 (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 18 Provisions 3URYLVLRQIRUJUDWXLW\ 5HIHU1RWH 177.93 192.05 3URYLVLRQIRUZDUUDQW\DQGPDLQWHQDQFHH[SHQVHV 88.59 Provision for abandonment and site restoration costs 1,407.70 1,924.92 1,674.22 1,799.37 2,316.84 Note 19 Deferred tax liabilities (net) 'HIHUUHGWD[OLDELOLWLHV QHW 2,889.56 13,041.51 2,889.56 8,639.28 13,041.51 7KH GHIHUUHG WD[ DVVHW RQ XQDEVRUEHG GHSUHFLDWLRQ DQG EXVLQHVV ORVVHV KDV EHHQ UHFRJQLVHGRQO\WRWKHH[WHQWRIGHIHUUHGWD[OLDELOLW\ ` 0LOOLRQ GXHWRXQFHUWDLQLW\ RIIXWXUHSUR¿WV Note 20 Financial Liabilities Current Borrowings a) Secured 7HUP/RDQVIURPEDQNV 2YHUGUDIWDJDLQVW¿[HGGHSRVLWV Working capital loans from banks 10,321.48 Term loans from others 13.39 13.39 )RUHLJQFXUUHQF\FRQYHUWLEOHERQGV 4,948.44 7HUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV 9HKLFOHORDQIURPEDQNV 8.84 b) Unsecured 7HUP/RDQVIURPEDQNV 11,008.08 11,285.02 245,039.51 23,460.95 43,387.45 65 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Details of Current borrowings: ` in Million Carrying rate of interest Particulars March 31, 2018 0DUFK March 31, 2018 0DUFK 2WKHU'HWDLOV Principal outstanding Secured 7HUPORDQVIURPEDQNV¿QDQFLDOLQVWLWXWLRQV 12.4% to 14.4% 1$ 5HIHUQRWH D DERYH 9HKLFOHORDQIURPEDQNV 8.84 9.5% to 13.0% 1$ 5HIHUQRWH E DERYH /RDQVIURPRWKHUV 13.39 13.39 12.0% 12.0% Refer note 20(b) below )RUHLJQFXUUHQF\FRQYHUWLEOHERQGV 4,891.32 4.3% 1$ 5HIHUQRWH F DERYH Working capital loans from banks 11,953.95 WR WR Refer note 20 (c) below 8QVHFXUHG /RDQVIURPEDQNV 9,250.00 11,150.00 WR WR Refer note 20 (d) below 7RWDO3ULQFLSDO2XWVWDQGLQJ 209,588.30 $GG ,QWHUHVWDFFUXHGDQGGXHDFFUXHGEXW not due /HVV ,QG$6UHFODVVL¿FDWLRQDGMXVWPHQWV 0.00 245,039.51 D 'HWDLOVUHODWLQJWRWHUPORDQVIURPEDQNVDQG¿QDQFLDOLQVWLWXWLRQV 'XH WR GHIDXOW LQ UHSD\PHQW RI WKH VHFXUHG ORDQV IURP WKH EDQNV DQG ¿QDQFLDO LQVWLWXWLRQV WKH\ KDYH UHFDOOHG WKH HQWLUH ORDQV RXWVWDQGLQJ $FFRUGLQJO\WKHVHKDYHEHHQLQFOXGHGXQGHUVKRUWWHUPERUURZLQJV)RUVHFXULWLHVIRUWKHORDQVUHIHUQRWHQR D b) Details relating to loans from others /RDQVIURPRWKHUVDPRXQWLQJWR` 0LOOLRQ $VDW0DUFK ` 13.39 Million) is secured against surrender value of keyman insurance policy. F 'HWDLOVUHODWLQJWRZRUNLQJFDSLWDOORDQVIURPEDQNV :RUNLQJFDSLWDOORDQVIURPEDQNVDUHVHFXUHGE\K\SRWKHFDWLRQRIWKH&RPSDQ\ VVWRFNRIUDZPDWHULDOVSDFNLQJPDWHULDOVVWRFNLQSURFHVV ¿QLVKHGJRRGVVWRUHVDQGVSDUHVERRNGHEWVRIJODVVVKHOOGLYLVLRQDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRW0U3UDGLSNXPDU1'KRRW DQG0U5DMNXPDU1'KRRW G 'HWDLOVUHODWLQJWRXQVHFXUHGORDQVIURPEDQNV L /RDQVDPRXQWLQJWR` 0LOOLRQ $VDWVW0DUFK` 0LOOLRQ LVVHFXUHGE\H[FOXVLYHFKDUJHRYHUWKHODQGVLWXDWHGDW 'LVW5HZD0DGK\D3UDGHVKRZQHGE\WKH6XEVLGLDU\&RPSDQ\YL]3URVSHURXV(QHUJ\3ULYDWH/LPLWHGVWDNHLQ37*DXQJ$ODP6HPHVWD V FRDOFRQFHVVLRQLQ,QGRQHVLDRZQHGE\RWKHUHQWLWLHVDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW LL 8QVHFXUHGORDQVIURPEDQNVDPRXQWLQJWR`1LO $VDWVW0DUFK` 0LOOLRQ LVVHFXUHGE\OLHQPDUNHGRQ¿[HGGHSRVLWVRI other entities. (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 21 Financial Liabilities Current Trade payables 7RWDORXWVWDQGLQJGXHWRPLFURDQGVPDOOHQWHUSULVHV 5HIHU1RWH 520.80 Total outstanding due to creditors other than micro and small enterprises 18,528.04 11,551.03 12,736.84 19,048.84 11,648.65 Note 22 Financial Liabilities- Current Others Current maturities of long term borrowings - 21,119.30 Bank overdraft as per books - 13.13 8QFODLPHGGLYLGHQG 6.21 8.23 9.43 &UHGLWRUVIRUFDSLWDOH[SHQGLWXUH 4.28 21.04 Payable to related parties 25,581.52 2WKHUSD\DEOHV 1,102.24 Deferred guarantee income 91.94 52.90 26,786.19 52,098.76 24,111.82 66 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 23 Other current liabilities 2WKHUV 2,918.88 1,020.09 2,918.88 1,020.09 835.71 Note 24 Provisions 3URYLVLRQIRUJUDWXLW\ 5HIHU1RWH 40.52 30.31 24.10 3URYLVLRQIRUOHDYHHQFDVKPHQW 5HIHU1RWH 50.82 3URYLVLRQIRUZDUUDQW\DQGPDLQWHQDQFHH[SHQVHV 399.81 548.85 514.74 489.61 (` in Million) Movement of Provision for warranty and maintenance expenses As at As at March 31, 2018 March 31, 2017 $WWKHFRPPHQFHPHQWRIWKH\HDUSHULRG 3URYLVLRQPDGHGXULQJWKH\HDUSHULRG 598.85 8WLOLVDWLRQRI3URYLVLRQV Discounting of non current provision 41.15 8QXVHGDPRXQWUHYHUVHGGXULQJWKH\HDUSHULRG 19.18 $WWKHHQGRIWKH\HDUSHULRG 546.10 627.63 Provision for warranty and maintenance expenses $SURYLVLRQLVHVWLPDWHGIRUH[SHFWHGZDUUDQW\FODLPVLQUHVSHFWRISURGXFWVVROGRQWKHEDVLVRIDWHFKQLFDOHYDOXDWLRQDQGSDVWH[SHULHQFHUHJDUGLQJ IDLOXUHWUHQGVRISURGXFWVDQGFRVWVRIUHFWL¿FDWLRQDQGUHSODFHPHQW7KHFRVWVLQFOXGHH[SHQVHVWREHLQFXUUHGIRUUHSDLUVUHSODFHPHQWPDWHULDOFRVW DQGVHUYLFLQJ,WLVH[SHFWHGWKDWWKLVH[SHQGLWXUHZLOOEHLQFXUUHGRYHUWKHFRQWUDFWXDOZDUUDQW\SHULRGWKDWLVXVXDOO\RQH\HDUDQGIRUFHUWDLQRIFDVHV H[WHQGHGZDUUDQW\IRUWZRWR¿YH\HDUV (` in Million) Particulars For the year ended For 15 Months ended March 31, 2018 March 31, 2017 Note 25 Revenue from operations Sale of products 28,142.80 Income from services 2WKHURSHUDWLQJUHYHQXH 190.42 28,398.61 122,524.90 Note 26 Other income ,QWHUHVWLQFRPH,QWHUHVWRQLQYHVWPHQWVDWDPRUWL]HGFRVW 494.93 1,391.33 Income from investments and securities division 420.35 41.42 ([FKDQJHUDWHÀXFWXDWLRQ 3UR¿WRQVDOHRI¿[HGDVVHWV Insurance claim received *DLQRQPRGL¿FDWLRQRI¿QDQFLDOLQVWUXPHQW *XDUDQWHHFRPPLVLRQ 95.85 2WKHUQRQRSHUDWLQJLQFRPH 3,395.44 5,840.46 5,263.61 Note 27 Cost of materials consumed Imported Indigenous 23,013.01 24,458.40 25,222.71 44,284.72 Note 28 3XUFKDVHRIVWRFNLQWUDGH Electrical and electronic items 9,005.84 9,005.84 43,055.27 67 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) Particulars For the year ended For 15 Months ended March 31, 2018 March 31, 2017 Note 29 &KDQJHVLQLQYHQWRULHVRI¿QLVKHGJRRGVZRUNLQSURJUHVV DQGVWRFNLQWUDGH Opening inventory )LQLVKHGJRRGVDQGVWRFNLQWUDGH 4,413.28 :RUNLQSURFHVV 1,425.49 5,883.44 6,095.13 Closing inventory )LQLVKHGJRRGVDQGVWRFNLQWUDGH 3,524.99 4,413.28 :RUNLQSURFHVV 1,294.93 4,819.92 5,883.43 Changes in inventory 1,063.52 211.70 Note 30 Production and exploration expenses - Oil and Gas 3URGXFWLRQDQGH[SORUDWLRQH[SHQVHV Royalty 182.48 Cess 219.12 Production bonus 25.99 38.04 *RYHUQPHQWVKDUHLQSUR¿WSHWUROHXP 2,454.44 2,922.98 ,QVXUDQFHH[SHQVHV 13.55 3,361.65 4,072.89 Note 31 (PSOR\HHEHQH¿WVH[SHQVHV 6DODU\ZDJHVDQGRWKHUEHQH¿WV 3,430.15 Contribution to provident fund and other funds 109.90 183.14 6WDIIZHOIDUHH[SHQVHV 140.20 2,170.77 3,753.49 Note 32 Finance costs ,QWHUHVWH[SHQVHRQ¿QDQFLDOOLDELOLWLHVPHDVXUHGDWDPRUWLVHGFRVW 30,824.18 2WKHUERUURZLQJFRVWV 8QZLQGLQJRIGLVFRXQWRQZDUUDQW\SURYLVLRQ 8QZLQGLQJRIGLVFRXQWRQVLWHUHVWRUDWLRQSURYLVLRQ 31.82 55.82 28,310.02 31,620.21 Note 33 Other expenses Power, fuel and water 448.98 %DQNLQJDQGRWKHU¿QDQFHFKDUJHV )UHLJKWDQGIRUZDUGLQJ 582.93 9HKLFOHUXQQLQJH[SHQVHV 241.12 454.12 Rent 5DWHVDQGWD[HV 158.01 Repairs to building 0.91 8.90 Repairs to plant and machinery 11.88 2WKHUUHSDLUVDQGPDLQWHQDQFH 59.00 Insurance 34.22 Advertisement and publicity 429.15 6DOHVSURPRWLRQH[SHQVHV 54.35 200.13 3D\PHQWWRDXGLWRUV 23.82 Directors' sitting fees 1.14 1.31 /HJDODQGSURIHVVLRQDOFKDUJHV 399.01 Royalty Printing and stationery 68 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) Particulars For the year ended For 15 Months ended March 31, 2018 March 31, 2017 Warranty and maintenance 890.91 1,291.58 Provision for doubtful debts 3,313.38 11.00 /RVVRQVDOHRI¿[HGDVVHWV 100.84 2I¿FHDQGJHQHUDOH[SHQVHV 8,419.69 9,915.78 3D\PHQWWR$XGLWRUV D 6WDWXWRU\$XGLW)HHV 4.80 12.00 E 7D[$XGLW)HHV 1.40 2.80 F 2XWRI3RFNHW([SHQVHV 0.12 0.30 G 2WKHU6HUYLFHV 6.32 23.82 Note 34 Exceptional items Payment made towards settlement of obligation 1,434.31 ([SHQVHVUHODWHGWRDERUWHGSURMHFW 6,200.14 - 1RWH ([FHSWLRQDOLWHPVUHSUHVHQWV D 3D\PHQWPDGHWRZDUGVVHWWOHPHQWRIREOLJDWLRQXQGHUSDWURQDJHOHWWHUJXDUDQWHHJLYHQWR,QWHVD6DQSDROR6S$DQ,WDOLDQEDQNIRU¿QDQFLDO DVVLVWDQFHJLYHQWRWKHWKHQRQHOHYHOVWHSGRZQVXEVLGLDU\DVGHWDLOHGLQ1RWH1RDERYH` 1,434.31 Million; and E ,QIUXFWXRXVSURMHFWH[SHQVHVUHODWLQJWRSURMHFWDERUWHGE\WKH&RPSDQ\`0LOOLRQ Note 35 Income taxes Tax expense (` in Million) For the year ended For the 15 month March 31, 2018 ended March 31, 2017 D $PRXQWVUHFRJQLVHGLQVWDWHPHQWRISUR¿WDQGORVV Current tax expense Current year Changes in estimates related to prior period Deferred tax expense 2ULJLQDWLRQDQGUHYHUVDORIWHPSRUDU\GLIIHUHQFHV (4,335.30) (5,761.18) (4,335.30) Tax expense for the year (5,761.18) (4,335.30) (b) Amounts recognised in other comprehensive income 'HIHUUHGWD[RQUHPHDVXUHPHQWVRIWKHGH¿QHGEHQH¿WSODQV 1.24 'HIHUUHGWD[RQHTXLW\LQVWUXPHQWV)972&, 2,940.50 2,951.55 1.24 (c) Reconciliation of effective tax rate 3UR¿WEHIRUHWD[ (58,401.55) 6WDWXWRU\LQFRPHWD[UDWH ([SHFWHGLQFRPHWD[H[SHQVH Tax effect of: 3UR¿WRQVDOHRILQYHVWPHQWV (21,452.18) (3,249.81) /RVVRQVDOHRI,QYHVWPHQW Permanent disallowables 11.10 Business loss &KDQJHLQLQWHUHVWWD[UDWH 0.04 'LIIHUHQFHGXHWRRSHQLQJDQGFORVLQJ:'9RISURGXFLQJSURSHUWLHV (19.51) Difference due to production properties ,QGH[DWLRQLPSDFWRQDFFRXQWRIIDLUYDOXDWLRQRIODQGDQGEXLOGLQJ 2,943.83 MAT written off on account of uncertainity 'HIHUUHGID[QRWFUHGLWHGRQORVVHV 2WKHUV (48.28) Total tax expense (5,761.18) (4,335.30) 69 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Deferred tax assets and liabilities are attributable to the following: (` in Million) Particulars 1HWGHIHUUHGWD[DVVHW OLDELOLWLHV January 1, 2016 March 31, 2017 March 31, 2018 Property, plant and equipment (11,505.84) ([SHQVHVDOORZDEOHLQIXWXUH 99.44 8QDEVRUEHGGHSUHFLDWLRQDQGORVVHV 1,209.02 )DLUYDOXDWLRQRILQYHVWPHQWVWKURXJK2&, %RUURZLQJ&RVWV(,5 6LWH5HVWRUDWLRQ/LDELOLW\ (55.03) )&&% (122.32) MAT credit entitlement Warranty Provision (13.35) (4.02) &RUSRUDWH*XDUDQWHH 18.30 50.82 (34.39) 2WKHUV 19.92 18.30 (13,041.51) (8,639.28) (2,889.56) Movement in Temporary differences: (` in Million) Particulars Balance Recognised Recognised Balance as Recognised Recognised Balance as at LQ3UR¿WDQG in OCI at March LQ3UR¿WDQG in as at January Loss during during 31, 2017 Loss during OCI during March 1, 2016 2016-17 2016-17 2017-18 2017-18 31, 2018 Property, Plant and Equipment 1,391.80 (11,505.84) ([SHQVHVDOORZDEOHLQIXWXUH 99.44 8QDEVRUEHGGHSUHFLDWLRQDQGORVVHV 1,209.02 15.84 )DLUYDOXDWLRQRILQYHVWPHQWVWKURXJK (0.41) 2&, %RUURZLQJ&RVWV(,5 6LWH5HVWRUDWLRQ/LDELOLW\ 19.32 (55.03) )&&% (122.32) 122.39 MAT credit entitlement 5HPHDVXUHPHQWVRIGH¿QHGEHQH¿W (1.24) 1.24 11.05 (11.05) obligation Warranty provision (13.35) 9.33 (4.02) (14.24) Corporate guarantee 18.30 32.52 50.82 (85.21) (34.39) 2WKHUV 3.92 19.92 18.30 Total (13,041.51) 4,400.99 1.24 (8,639.28) 5,761.18 (11.46) (2,889.56) Note 36 Earnings per share (EPS) %DVLF(36FDOFXODWHGE\GLYLGLQJWKH1HWSUR¿WIRUWKH\HDUDWWULEXWDEOHWRHTXLW\KROGHUVE\WKHZHLJKWHGDYHUDJHQXPEHURI(TXLW\VKDUHVRXWVWDQGLQJ during the year. 'LOXWHG(36DPRXQWVDUHFDOFXODWHGE\GLYLGLQJWKHSUR¿WDWWULEXWDEOHWRHTXLW\KROGHUV DIWHUDGMXVWLQJSUR¿WLPSDFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHV if any) by the aggregate of weighted average number of Equity shares outstanding during the year and the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. Particulars March 31, 2018 March 31, 2017 Basic and diluted earnings per share for equity shareholders L 3UR¿W /RVV DWWULEXWDEOHWRHTXLW\VKDUHKROGHUV ` in Millions) ii. Weighted average number of equity shares iii. Basic and diluted earnings per share (`) LY 1RPLQDOYDOXHRIHTXLW\VKDUHV `) 10.00 10.00 70 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Note 1. Weighted average number of shares is the number of equity shares outstanding at the beginning of the year adjusted by the number of equity VKDUHVLVVXHGGXULQJ\HDUPXOWLSOLHGE\WKHWLPHZHLJKWLQJIDFWRU7KHWLPHZHLJKWLQJIDFWRULVWKHQXPEHURIGD\VIRUZKLFKWKHVSHFL¿FVKDUHV are outstanding as a proportion of total number of days during the year. 7KHHIIHFWRIFRQYHUVLRQRSWLRQRI)&&%VLVDQWLGLOXWLYHLQQDWXUH 7KH¿QDQFLDOLQVWLWXWLRQVKDYHDULJKWWRFRQYHUWDWWKHLURSWLRQWKHZKROHRXWVWDQGLQJDPRXQWRIWHUPORDQVRUDSDUWQRWH[FHHGLQJRI GHIDXOWHGDPRXQWRIORDQZKLFKHYHULVORZHULQWRIXOO\SDLGXSHTXLW\VKDUHVRIWKH&RPSDQ\DWSDURQGHIDXOWLQSD\PHQWVUHSD\PHQWVRIWKUHH FRQVHFXWLYHLQVWDOOPHQWVRISULQFLSDODQGRULQWHUHVWWKHUHRQRURQPLVPDQDJHPHQWRIWKHDIIDLUVRIWKH&RPSDQ\6XFKFRQYHUVLRQDUHFRQVLGHUHG WREHDQWLGLOXWLYHLQQDWXUHDQGKHQFHQRWFRQVLGHUHGIRUFRPSXWDWLRQRIWKHGLOXWHGHDUQLQJVSHUVKDUH Note 37 (PSOR\HHEHQH¿WV D 'H¿QHGFRQWULEXWLRQSODQ 7KHFRQWULEXWLRQVSDLGSD\DEOHWR3URYLGHQW)XQG(PSOR\HHV6WDWH,QVXUDQFH6FKHPH(PSOR\HHV3HQVLRQ6FKHPHV DQGRWKHUIXQGVDUH GHWHUPLQHGXQGHUWKHUHOHYDQWDSSURYHGVFKHPHVDQGRUVWDWXWHVDQGDUHUHFRJQLVHGDVH[SHQVHLQWKH6WDWHPHQWRI3UR¿WDQG/RVVGXULQJWKH period in which the employee renders the related service. There are no further obligations other than the contributions payable to the approved WUXVWVDSSURSULDWHDXWKRULWLHV 7KH&RPSDQ\KDVUHFRJQLVHGWKHIROORZLQJDPRXQWVLQWKHVWDWHPHQWRISUR¿WDQGORVVIRUWKH\HDU (` in Million) Particulars March 31, 2018 March 31, 2017 (PSOR\HU VFRQWULEXWLRQWR3URYLGHQW)XQGDQG(6,& 109.90 183.14 109.90 183.14 E 'H¿QHGEHQH¿WSODQ Gratuity 7KHFRPSDQ\SURYLGHVIRUJUDWXLW\IRUHPSOR\HHVDVSHUWKH3D\PHQWRI*UDWXLW\$FW (PSOR\HHVZKRDUHLQFRQWLQXRXVVHUYLFHIRUDSHULRG RI\HDUVDUHHOLJLEOHWRJUDWXLW\DWWKHUDWHRI¿IWHHQGD\VZDJHVIRUHYHU\FRPSOHWHG\HDURIVHUYLFHRUSDUWWKHUHRILQH[FHVVRIVL[PRQWKVEDVHG on the rate of wages last drawn by the employee. 7KHPRVWUHFHQWDFWXDULDOYDOXDWLRQRISODQDVVHWVDQGWKHSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WREOLJDWLRQIRUJUDWXLW\ZDVFDUULHGRXWDVDW0DUFK 7KHSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WREOLJDWLRQVDQGWKHUHODWHGFXUUHQWVHUYLFHFRVWDQGSDVWVHUYLFHFRVWZHUHPHDVXUHGXVLQJWKH 3URMHFWHG8QLW&UHGLW0HWKRG %DVHGRQWKHDFWXDULDOYDOXDWLRQREWDLQHGLQWKLVUHVSHFWWKHIROORZLQJWDEOHVHWVRXWWKHGHWDLOVRIWKHHPSOR\HHEHQH¿WREOLJDWLRQDQGWKHSODQ assets as at balance sheet date: (` in Million) Particulars March 31, 2018 March 31, 2017 'H¿QHGEHQH¿WREOLJDWLRQ 281.48 331.20 /HVV )DLUYDOXHRISODQDVVHWV 90.53 1HWGH¿QHGEHQH¿WREOLJDWLRQV 218.46 240.67 )DLUYDOXHRIWKHSODQDVVHWVDQGSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WOLDELOLWLHV 7KHDPRXQWLQFOXGHGLQWKH%DODQFHVKHHWDULVLQJIURPWKH&RPSDQ\ VREOLJDWLRQVDQGSODQDVVHWVLQUHVSHFWRILWVGH¿QHGEHQH¿WVFKHPHVLVDV follows: (` in Million) Particulars March 31, 2018 March 31, 2017 1 0RYHPHQWLQGH¿QHGEHQH¿WREOLJDWLRQV At the beginning of the year 331.20 293.20 /LDELOLWLHVDVVXPHGRQEXVLQHVVFRPELQDWLRQ 1.22 5HFRJQLVHGLQSUR¿WRUORVV Prior Year Charge Current service cost 30.89 Interest cost 21.25 Past Service Cost 8.28 Recognised in other comprehensive income Actuarial (gains)/losses on obligations - (31.95) 3.58 %HQH¿WSDLG (39.42) At the end of the year 281.48 331.20 71 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) Particulars March 31, 2018 March 31, 2017 2 Movement in fair value of plan assets: At the beginning of the year 90.53 5HFRJQLVHGLQSUR¿WRUORVV Interest income 5.52 ([SHFWHG5HWXUQRQ3ODQ$VVHWV 0.29 Recognised in other comprehensive income Actuarial gains/(losses) Employer contributions 18.83 %HQH¿WSDLG (35.88) At the end of the year 63.02 90.53 3 5HFRJQLVHGLQSUR¿WRUORVV Current service cost 30.89 ,QWHUHVWH[SHQVH 21.25 Interest income 5.52 For the year 46.62 57.28 4 Recognised in Other Comprehensive Income $FWXDULDO JDLQV ORVVHVRQREOLJDWLRQV (31.95) 3.58 $FWXDULDO JDLQV ORVVHVRQSODQDVVHWV For the year (31.95) 3.58 5 Plan assets for this Fund are insurance funds. (100%) 6 7KHSULQFLSDODFWXDULDODVVXPSWLRQVXVHGIRUHVWLPDWLQJWKH&RPSDQ\¶VEHQH¿WREOLJDWLRQVDUHVHWRXWEHORZ RQDZHLJKWHGDYHUDJHEDVLV Particulars March 31, 2018 March 31, 2017 Rate of increase in salaries (%) 5% per annum 5% per annum Discount rate (%) DQGSHUDQQXP DQGSHUDQQXP Emplyee turnover rate 5% at younger ages reducing to 5% at younger ages reducing to 1% at older ages 1% at older ages Mortality rate during employment ,QGLDQ$VVXUHG/LYHV0RUWDOLW\ ,QGLDQ$VVXUHG/LYHV0RUWDOLW\ 8OWLPDWH 8OWLPDWH 7 6HQVLWLYLW\RIWKHGH¿QHGEHQH¿WREOLJDWLRQ March 31, 2018 March 31, 2017 Increase Decrease Increase Decrease Discount rate (0.50% movement) 341.30 Rate of increase in salaries (0.50% movement) 289.43 (319.50) Rate of employee turnover (0.50% movement) 329.12 7KHDERYHVHQVLWLYLW\DQDO\VLVKDYHEHHQFDOFXODWHGWRVKRZWKHPRYHPHQWLQGH¿QHGEHQH¿WREOLJDWLRQLQLVRODWLRQDQGDVVXPLQJWKHUH are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others. In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied. $OWKRXJKWKHDQDO\VLVGRHVQRWWDNHDFFRXQWRIWKHIXOOGLVWULEXWLRQRIFDVKÀRZVH[SHFWHGXQGHUWKHSODQLWGRHVSURYLGHDQ DSSUR[LPDWLRQRIWKHVHQVLWLYLW\RIWKHDVVXPSWLRQVVKRZQ 8 Expected contributions to gratuity fund for the year ended March 31, 2019 is ` 24.43 Million. 9 7KHH[SHFWHGIXWXUHFDVKÀRZVDVDW0DUFKZHUHDVIROORZV (` in Million) Particulars Up to 1 year Between Between More than Total 1-2 years 2-5 years 5 years March 31, 2018 'H¿QHGEHQH¿WREOLJDWLRQV *UDWXLW\IXQGHG 24.43 March 31, 2017 'H¿QHGEHQH¿WREOLJDWLRQV *UDWXLW\IXQGHG 24.43 72 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) Particulars March 31, 2018 0DUFK Note 38 Contingent liabilities and commitments (to the extent not provided for) Commitments (VWLPDWHGDPRXQWRIFRQWUDFWUHPDLQLQJWREHH[HFXWHGRQFDSLWDODFFRXQWDQGQRWSURYLGHGIRU QHWRI advances) Contingent Liabilities 1 /HWWHUVRI*XDUDQWHHV 2 /HWWHUVRI&UHGLWRSHQHG LQFOXGLQJ6WDQGE\/HWWHUVRI&UHGLWDQG/HWWHURI&RPIRUW 45.31 3 &ODLPVDJDLQVWWKH&RPSDQ\QRWDFNQRZOHGJHGDVGHEWV 3.1 Custom Duty demands and penalties under dispute 453.94 [Amount paid under protest `0LOOLRQ $VDW0DUFK`0LOOLRQ @ 3.2 ,QFRPH7D[GHPDQGVXQGHUGLVSXWH 3,039.40 2,932.00 3.3 ([FLVH'XW\DQG6HUYLFH7D[GHPDQGVDQGSHQDOWLHVXQGHUGLVSXWH [Amount paid under protest `0LOOLRQ $VDW0DUFK`0LOOLRQ @ 3.4 6DOHV7D[GHPDQGVXQGHUGLVSXWH [Amount paid under protest ` 0LOOLRQ $VDW0DUFK` 0LOOLRQ @ 3.5 2WKHUV [Amount paid under protest `0LOOLRQ $VDW0DUFK`0LOOLRQ @ 6KRZ&DXVH1RWLFHV 6&1V KDYHEHHQVHUYHGRQWKH2SHUDWRURIWKH5DYYD2LO *DV)LHOG-RLQW 9HQWXUH 5DYYD-9 IRUQRQSD\PHQWRI6HUYLFH7D[DQG(GXFDWLRQDO&HVVRQYDULRXVVHUYLFHVIRU WKHSHULRG-XO\WR0DUFK7KHDPRXQWLQYROYHGUHODWLQJWR5DYYD%ORFNLV` 0LOOLRQ $VDW0DUFK`0LOOLRQ 7KH2SHUDWRULVFRQWHVWLQJWKH6&1VGHPDQGVEHIRUH&RPPLVVLRQHURI6HUYLFH7D[DQGKDV¿OHG appeal before CESTAT, Bangalore and also writ petition before Hon'ble High Court of Madras FKDOOHQJLQJVHUYLFHWD[GHPDQGVRQVRPHRIWKHVHUYLFHVDQGEHOLHYHVWKDWLWVSRVLWLRQLVOLNHO\WR be upheld. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may result has been made in the accounts as the same is subject to agreement by WKHPHPEHUVRIWKH-RLQW9HQWXUH6KRXOGLWXOWLPDWHO\EHFRPHSD\DEOHWKH&RPSDQ\¶VVKDUHDV per the participating interest would be upto ` 0LOOLRQ $VDW0DUFK` 0LOOLRQ 'LVSXWHG,QFRPH7D[GHPDQGDPRXQWLQJWR` 1LO $VDW0DUFK` 22.29 Million) in respect RIFHUWDLQSD\PHQWVPDGHE\5DYYD2LO *DV)LHOG-RLQW9HQWXUHLVFXUUHQWO\SHQGLQJEHIRUHWKH Hon'ble High Court of Madras. The ultimate outcome of the matter cannot presently be determined and no provision for any liability that may result has been made as the same is subject to agreement E\WKHPHPEHUVRIWKH-RLQW9HQWXUH6KRXOGLWXOWLPDWHO\EHFRPHSD\DEOHWKH&RPSDQ\ VVKDUHDV per the participating interest would be upto ` 1LO $VDW0DUFK`0LOOLRQ Note 39 Disclosure in accordance with Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 : Particulars March 31, 2018 0DUFK 1 3ULQFLSOHDPRXQWUHPDLQLQJXQSDLGDVDWWKHHQGRIWKH\HDUSHULRG 520.80 2 ,QWHUHVWGXHWKHUHRQDVDWWKHHQGRIWKH\HDUSHULRG 15.42 3 ,QWHUHVWSDLGE\WKH&RPSDQ\LQWHUPVRI6HFWLRQRIWKH0LFUR6PDOODQG0HGLXP(QWHUSULVHV 229.31 'HYHORSPHQW$FW DORQJ ZLWK WKH DPRXQW RI SD\PHQW PDGH WR WKH VXSSOLHUV EH\RQG WKH DSSRLQWHGGD\GXULQJWKH\HDUSHULRG 4 Interest due and payable for the period of delay in making payment 15.42 5 ,QWHUHVWDFFUXHGDQGUHPDLQLQJXQSDLGDWWKHHQGRIWKH\HDUSHULRG 15.42 )XUWKHULQWHUHVWUHPDLQLQJGXHDQGSD\DEOHHYHQLQWKHVXFFHHGLQJ\HDUVXQWLOOVXFKGDWHZKHQWKH interest dues as above are actually paid to the small enterprises for the purpose of disallowance as GHGXFWLEOHH[SHQGLWXUHXQGHUVHFWLRQRIWKH0LFUR6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW $FW 1RWH 7KLVLQIRUPDWLRQDVUHTXLUHGWREHGLVFORVHGXQGHUWKH0LFUR6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW$FWKDVEHHQGHWHUPLQHGWRWKH H[WHQWVXFKYHQGRUVSDUWLHVKDYHEHHQLGHQWL¿HGRQWKHEDVLVRILQIRUPDWLRQDYDLODEOHZLWKWKH&RPSDQ\ Note 40 Corporate social responsibility The Company in light of losses incurred in the past years is not required to spend any amount towards Corporate Social Responsibility for the year ended March 31, 2018. Note 41 )LQDQFLDOLQVWUXPHQWV±)DLUYDOXHVDQGULVNPDQDJHPHQW $ $FFRXQWLQJFODVVL¿FDWLRQDQGIDLUYDOXHV 7KHIROORZLQJWDEOHVKRZVWKHFDUU\LQJDPRXQWVDQGIDLUYDOXHVRI¿QDQFLDODVVHWVDQG¿QDQFLDOOLDELOLWLHVLQFOXGLQJWKHLUOHYHOVDUHSUHVHQWHG EHORZ,WGRHVQRWLQFOXGHWKHIDLUYDOXHLQIRUPDWLRQIRU¿QDQFLDODVVHWVDQG¿QDQFLDOOLDELOLWLHVQRWPHDVXUHGDWIDLUYDOXHLIWKHLUFDUU\LQJDPRXQWLV DUHDVRQDEOHDSSUR[LPDWLRQRIIDLUYDOXH 73 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) March 31, 2018 Carrying Amount Fair Value FVTPL FVOCI Amortised Total Level 1 Level 2 Level 3 Total Cost Financial assets 1RQFXUUHQW¿QDQFLDODVVHWV ,QYHVWPHQWLQHTXLW\RIVXEVLGLDULHVDQGMRLQWYHQWXUH 95,245.55 95,245.55 95,245.55 95,245.55 8QTXRWHG ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQW 580.80 580.80 580.80 580.80 YHQWXUHV8QTXRWHG ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQW YHQWXUHV4XRWHG Investments in Preference shares 1,055.18 1,055.18 1,055.18 1,055.18 /RDQV 2WKHUV 39.25 39.25 39.25 39.25 &XUUHQW¿QDQFLDODVVHWV Trade receivables Cash and cash equivalents Bank balances 2,039.59 2,039.59 /RDQV 2WKHUV - 95,931.01 161,538.14 257,469.15 104.66 107,155.79 95,826.35 203,086.80 Financial liabilities &XUUHQW¿QDQFLDOOLDELOLWLHV Borrowings 245,039.51 245,039.51 Trade payables 2WKHUV - - 284,562.54 284,562.54 - - - - (` in Million) March 31, 2017 Carrying Amount Fair Value FVTPL FVOCI Amortised Total Level 1 Level 2 Level 3 Total Cost Financial assets 1RQFXUUHQW¿QDQFLDODVVHWV ,QYHVWPHQWLQHTXLW\RIVXEVLGLDULHVDQGMRLQWYHQWXUH8QTXRWHG 100,810.15 100,810.15 100,810.15 100,810.15 ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQW 580.83 580.83 580.83 580.83 YHQWXUHV8QTXRWHG ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQW 102.94 102.94 102.94 102.94 YHQWXUHV4XRWHG Investments in Preference shares /RDQV 2WKHUV 90.95 90.95 90.95 90.95 &XUUHQW¿QDQFLDODVVHWV Trade receivables 24,003.15 24,003.15 Cash and cash equivalents 441.51 441.51 Bank balances other than (11a) above 5,120.28 5,120.28 /RDQV 104,822.81 104,822.81 2WKHUV 515.14 515.14 - 101,493.92 171,618.20 273,112.12 102.94 36,715.31 101,390.98 138,209.23 Financial liabilities 1RQFXUUHQW¿QDQFLDOOLDELOLWLHV Borrowings 2WKHUV &XUUHQW¿QDQFLDOOLDELOLWLHV Borrowings Trade payables 19,048.84 19,048.84 2WKHUV - - 266,227.67 266,227.67 - 171,619.12 - 171,619.12 74 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) January 1, 2016 Carrying Amount Fair Value FVTPL FVOCI Amortised Total Level 1 Level 2 Level 3 Total Cost Financial assets 1RQFXUUHQW¿QDQFLDODVVHWV ,QYHVWPHQWLQHTXLW\RIVXEVLGLDULHVDQGMRLQWYHQWXUH8QTXRWHG 88,314.44 88,314.44 88,314.44 88,314.44 ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQWYHQWXUHV 504.35 504.35 504.35 504.35 8QTXRWHG ,QYHVWPHQWLQHTXLW\VKDUHVRWKHUWKDQ6XEVLGLDULHVDQG-RLQWYHQWXUHV 123.00 123.00 123.00 123.00 4XRWHG Investments in Preference shares /RDQV 39,413.48 39,413.48 39,413.48 39,413.48 2WKHUV &XUUHQW¿QDQFLDODVVHWV Investments 52.00 52.00 52.00 52.00 Trade receivables 28,585.19 28,585.19 Cash and cash equivalents Bank balances other than (11a) above /RDQV 2WKHUV 880.30 880.30 - 88,941.79 202,924.73 291,866.52 175.00 40,584.95 88,818.79 129,578.74 Financial liabilities 1RQFXUUHQW¿QDQFLDOOLDELOLWLHV Borrowings 185,183.93 185,183.93 185,183.93 185,183.93 2WKHUV &XUUHQW¿QDQFLDOOLDELOLWLHV Borrowings Trade payables 2WKHUV 24,111.82 24,111.82 - - 264,331.85 264,331.85 - 185,183.93 - 185,183.93 % )LQDQFLDOULVNPDQDJHPHQW 7KH&RPSDQ\KDVH[SRVXUHWRWKHIROORZLQJULVNVDULVLQJIURP¿QDQFLDOLQVWUXPHQWV i) Credit risk ; LL /LTXLGLW\ULVN DQG iii) Interest risk 5LVNPDQDJHPHQWIUDPHZRUN The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities. The Company’s risk Board of Directors policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits DQGFRQWUROVDQGWRPRQLWRUULVNVDQGDGKHUHQFHWROLPLWV5LVN%RDUGRI'LUHFWRUVSROLFLHVDQGV\VWHPVDUHUHYLHZHGUHJXODUO\WRUHÀHFWFKDQJHVLQ market conditions and the Company’s activities. The Company, through its training and Board of Directors standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Board of Directors monitors compliance with the company’s risk Board of Directors policies and procedures, and reviews the adequacy of the risk Board of Directors framework in relation to the risks faced by the Company. The Board of Directors is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk Board of Directors controls and procedures, the results of which are reported to the Board of Directors. L &UHGLWULVN &UHGLWULVNLVWKHULVNRI¿QDQFLDOORVVWRWKH&RPSDQ\LIDFXVWRPHURUFRXQWHUSDUW\WRD¿QDQFLDOLQVWUXPHQWIDLOVWRPHHWLWVFRQWUDFWXDOREOLJDWLRQV and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments. a. Trade receivables 7KH&RPSDQ\¶VH[SRVXUHWRFUHGLWULVNLVLQÀXHQFHGPDLQO\E\WKHLQGLYLGXDOFKDUDFWHULVWLFVRIHDFKFXVWRPHU7KHGHPRJUDSKLFVRIWKHFXVWRPHU LQFOXGLQJWKHGHIDXOWULVNRIWKHLQGXVWU\DQGFRXQWU\LQZKLFKWKHFXVWRPHURSHUDWHVDOVRKDVDQLQÀXHQFHRQFUHGLWULVNDVVHVVPHQW&UHGLWULVNLV 75 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. 7KH&RPSDQ\GRHVQRWKDYHDQ\VLJQL¿FDQWFRQFHQWUDWLRQRIFUHGLWULVN7KHUHDUHFXVWRPHUVZKLFKDFFRXQWHGIRURUPRUHRIWKHWRWDOWUDGH receivables as at the year end. Impairment The ageing of trade and other receivables that were not impaired was as follows. (` in Million) Gross carrying amount March 31, 2018 March 31, 2017 January 1, 2016 Past due not impaired /HVVWKDQGD\V 3DVWGXH±GD\V 3DVWGXH± GD\V 5,859.89 3DVWGXH ±GD\V 3DVWGXH±GD\V 1,493.52 More than 180 days 5,915.00 Total 7,410.13 24,003.15 28,585.19 0DQDJHPHQWKDVDQDO\VHGWKHGHEWRUVRXWVWDQGLQJDVRI0DUFKDQGFRQFOXGHGWKDWWKHKLVWRU\RIEDGGHEWVRQWKHSUR¿OHRILWVFXUUHQW GHEWRUVLVLQVLJQL¿FDQW7KHGHEWRUVZKLFKDUHRXWVWDQGLQJDVRI0DUFKKDYHEHHQJHQHUDOO\UHJXODULQPDNLQJSD\PHQWVDQGKHQFHLW GRHVQRWH[SHFWVLJQL¿FDQWLPSDLUPHQWORVVHVRQLWVFXUUHQWSUR¿OHRIRXWVWDQGLQJGHEWRUV7KHGHEWRUVZKLFKKDYHGHIDXOWHGLQWKHSDVWDUHPRVWO\ RQDFFRXQWRIDQ\OLWLJDWLRQVDQGLWVH[SHULHQFHUHJDUGLQJEDGGHEWVKDVEHHQYHU\ORZLQWKHSDVW 2QWKHEDVLVRIDERYHQRDGGLWLRQDOSURYLVLRQKDVEHHQPDGHLQWKHERRNVRIDFFRXQWVXQGHU,QG$6 E &DVKDQGFDVKHTXLYDOHQWVDQG2WKHUEDQNEDODQFHV The Company held cash and cash equivalents and other bank balances of `0LOOLRQVDW0DUFK 0DUFK ` 0LOOLRQV-DQXDU\ `0LOOLRQV 7KHFDVKDQGFDVKHTXLYDOHQWVDUHKHOGZLWKEDQNDQG¿QDQFLDOLQVWLWXWLRQFRXQWHUSDUWLHVZLWKJRRG credit ratings. c. Investments 7KH&RPSDQ\OLPLWVLWVH[SRVXUHWRFUHGLWULVNE\JHQHUDOO\LQYHVWLQJLQOLTXLGVHFXULWLHVDQGRQO\ZLWKFRXQWHUSDUWLHVWKDWKDYHDJRRGFUHGLWUDWLQJ 7KH&RPSDQ\GRHVQRWH[SHFWDQ\ORVVHVIURPQRQSHUIRUPDQFHE\WKHVHFRXQWHUSDUWLHVDQGGRHVQRWKDYHDQ\VLJQL¿FDQWFRQFHQWUDWLRQRI H[SRVXUHVWRVSHFL¿FLQGXVWU\VHFWRUVRUVSHFL¿FFRXQWU\ULVNV G 2WKHU¿QDQFLDODVVHWV 2WKHUWKDQWUDGHDQGRWKHUUHFHLYDEOHVWKH&RPSDQ\KDVQRRWKHU¿QDQFLDODVVHWVWKDWDUHSDVWGXHEXWQRWLPSDLUHG LL /LTXLGLW\ULVN /LTXLGLW\ULVNLVWKHULVNWKDWWKH&RPSDQ\ZLOOHQFRXQWHUGLI¿FXOW\LQPHHWLQJWKHREOLJDWLRQVDVVRFLDWHGZLWKLWV¿QDQFLDOOLDELOLWLHVWKDWDUHVHWWOHGE\ GHOLYHULQJFDVKRUDQRWKHU¿QDQFLDODVVHW7KH&RPSDQ\¶VDSSURDFKWRPDQDJLQJOLTXLGLW\LVWRHQVXUHDVIDUDVSRVVLEOHWKDWLWZLOOKDYHVXI¿FLHQW liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. /LTXLGLW\ULVNLVPDQDJHGE\&RPSDQ\WKURXJKHIIHFWLYHIXQGPDQDJHPHQW7KH&RPSDQ\KDVREWDLQHGIXQGDQGQRQIXQGEDVHGZRUNLQJFDSLWDO OLQHVIURPYDULRXVEDQNV)XUWKHUPRUHWKH&RPSDQ\KDVDFFHVVWRIXQGVIURPGHEWPDUNHWVWKURXJKIRUHLJQFXUUHQF\ERUURZLQJVDQGRWKHUGHEW instruments. 7KHIROORZLQJDUHWKHUHPDLQLQJFRQWUDFWXDOPDWXULWLHVRI¿QDQFLDOOLDELOLWLHVDWWKHUHSRUWLQJGDWH7KHDPRXQWVDUHJURVVDQGXQGLVFRXQWHGDQG LQFOXGHHVWLPDWHGLQWHUHVWSD\PHQWVDQGH[FOXGHWKHLPSDFWRIQHWWLQJDJUHHPHQWV 0DWXULWLHVRI¿QDQFLDOOLDELOLWLHV 7KHDPRXQWVGLVFORVHGLQWKHWDEOHDUHWKHFRQWUDFWXDOXQGLVFRXQWHGFDVKÀRZV (` in Million) &RQWUDFWXDOFDVKÀRZV March 31, 2018 Carrying Total < 1 Year 1-3 Years 3-5 Years More than 5 amount Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQFXUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV Borrowings 245,039.51 29,482.22 29,482.22 Trade payables 2WKHUFXUUHQW¿QDQFLDOOLDELOLWLHV ([FOXGLQJFXUUHQW 0DWXULW\RI/RQJWHUPGHEW Total 284,562.54 112,421.86 112,421.86 - - - 76 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) (` in Million) March 31, 2017 &RQWUDFWXDOFDVKÀRZV Carrying Total < 1 Year 1-3 Years 3-5 Years More than 5 amount Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQFXUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV ,QFOXGLQJFXUUHQW0DWXULW\RI/RQJ 188,185.35 21,119.30 term debt) &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV Borrowings Trade payables 19,048.84 19,048.84 19,048.84 2WKHUFXUUHQW¿QDQFLDOOLDELOLWLHV ([FOXGLQJFXUUHQW 0DWXULW\RI/RQJWHUPGHEW Total 266,227.67 262,547.85 95,481.80 120,249.73 46,816.32 - (` in Million) January 1, 2016 &RQWUDFWXDOFDVKÀRZV Carrying Total < 1 Year 1-3 Years 3-5 Years More than 5 amount Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQFXUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV ,QFOXGLQJFXUUHQW0DWXULW\RI/RQJ term debt) &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV Borrowings 43,122.05 43,122.05 Trade payables 2WKHUFXUUHQW¿QDQFLDOOLDELOLWLHV ([FOXGLQJFXUUHQW 13,042.31 0DWXULW\RI/RQJWHUPGHEW Total 264,331.85 259,348.74 79,937.98 78,173.36 101,126.65 110.75 LLL ,QWHUHVWUDWHULVN ,QWHUHVWUDWHULVNFDQEHHLWKHUIDLUYDOXHLQWHUHVWUDWHULVNRUFDVKÀRZLQWHUHVWUDWHULVN)DLUYDOXHLQWHUHVWUDWHULVNLVWKHULVNRIFKDQJHVLQIDLU YDOXHVRI¿[HGLQWHUHVWEHDULQJLQYHVWPHQWVEHFDXVHRIÀXFWXDWLRQVLQWKHLQWHUHVWUDWHV&DVKÀRZLQWHUHVWUDWHULVNLVWKHULVNWKDWWKHIXWXUHFDVK ÀRZVRIÀRDWLQJLQWHUHVWEHDULQJLQYHVWPHQWVZLOOÀXFWXDWHEHFDXVHRIÀXFWXDWLRQVLQWKHLQWHUHVWUDWHV 7KH&RPSDQ\GRHVQRWDFFRXQWIRUDQ\¿[HGUDWH¿QDQFLDODVVHWVRU¿QDQFLDOOLDELOLWLHVDWIDLUYDOXHWKURXJKSUR¿WRUORVV7KHUHIRUHDFKDQJHLQ LQWHUHVWUDWHVDWWKHUHSRUWLQJGDWHZRXOGQRWDIIHFWSUR¿WRUORVV (` in Million) Carrying amount March 31, 2018 March 31, 2017 January 1, 2016 Variable-rate instruments Non current borrowings Secured 5XSHH7HUP/RDQVIURP%DQNV - 5XSHH7HUP/RDQVIURP)LQDQFLDO,QVWLWXWLRQV - 9HKLFOH/RDQIURP%DQNV - )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV - &XUUHQW0DWXULWLHVRI/RQJ7HUP%RUURZLQJV - 21,119.30 Current borrowings Secured /RDQVIURP%DQNV 2YHUGUDIWDJDLQVW)L[HG'HSRVLWV :RUNLQJ&DSLWDO/RDQVIURP%DQNV 10,321.48 /RDQVIURP2WKHUV 13.39 13.39 )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV 4,948.43 /RDQVIURP)LQDQFLDO,QVWLWXWLRQV 9HKLFOH/RDQIURPEDQNV 8.85 Unsecured /RDQVIURP%DQNV 11,008.08 11,150.00 11,285.02 245,039.51 216,199.37 239,640.89 77 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) )DLUYDOXHVHQVLWLYLW\DQDO\VLVIRU¿[HGUDWHLQVWUXPHQWV All the borrowings of company are at variable interest rates. &DVKÀRZVHQVLWLYLW\DQDO\VLVIRUYDULDEOHUDWHLQVWUXPHQWV $UHDVRQDEO\SRVVLEOHFKDQJHRIEDVLVSRLQWVLQLQWHUHVWUDWHVDWWKHUHSRUWLQJGDWHZRXOGKDYHLQFUHDVHG GHFUHDVHG SUR¿WRUORVVE\WKHDPRXQWV VKRZQEHORZ7KLVDQDO\VLVDVVXPHVWKDWDOORWKHUYDULDEOHVLQSDUWLFXODUIRUHLJQFXUUHQF\H[FKDQJHUDWHVUHPDLQFRQVWDQW,QFDVHVZKHUHWKHUHODWHG LQWHUHVWUDWHULVNLVFDSLWDOL]HGWR¿[HGDVVHWVWKHLPSDFWLQGLFDWHGEHORZPD\DIIHFWWKH&RPSDQ\ VLQFRPHVWDWHPHQWRYHUWKHUHPDLQLQJOLIHRIWKH UHODWHG¿[HGDVVHWV (` in Million) 3UR¿WRUORVVEHIRUHWD[ 100 bp increase 100 bp decrease March 31, 2018 (2,450.40) 2,450.40 0DUFK -DQXDU\ Note 42 Capital management 7KH&RPSDQ\¶VSROLF\LVWRPDLQWDLQDVWURQJFDSLWDOEDVHVRDVWRPDLQWDLQLQYHVWRUFUHGLWRUDQGPDUNHWFRQ¿GHQFHDQGWRVXVWDLQIXWXUHGHYHORSPHQW of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders. 7KH&RPSDQ\PRQLWRUVFDSLWDOXVLQJDUDWLRRIµDGMXVWHGQHWGHEW¶WRµDGMXVWHGHTXLW\¶)RUWKLVSXUSRVHDGMXVWHGQHWGHEWLVGH¿QHGDVWRWDOERUURZLQJV FRPSULVLQJLQWHUHVWEHDULQJORDQVDQGERUURZLQJVOHVVFDVKDQGFDVKHTXLYDOHQWVDQGEDQNGHSRVLWV$GMXVWHGHTXLW\FRPSULVHVDOOFRPSRQHQWVRI equity. The Company’s adjusted net debt to equity ratio is as follows: (` in Million) Particulars March 31, 2018 March 31, 2017 January 1, 2016 Total borrowings 245,039.51 /HVV &DVKDQGFDVKHTXLYDOHQWV 441.51 /HVV %DQNGHSRVLWV 2,039.59 5,120.28 Adjusted net debt Total equity 98,330.99 119,218.81 Adjusted net debt to adjusted equity ratio 5.76 2.14 1.78 Note 43 Segement Reporting 6HJPHQWUHSRWLQJZLOOEHSUHVHQWHGLQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV Note 44 Related Party Disclosures, as required by Indian Accounting Standard 24 (Ind AS 24) are given below: A. Relationships - Subsidiaries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ontinued) K (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG IRUPHUO\9LGHRFRQ,QWHUQDWLRQDO(OHFWURQLFV/LPLWHG DQGLWVVXEVLGLDULHV- -XPER7HFKQR6HUYLFHV 3ULYDWH/LPLWHG 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHGDQGLWVVXEVLGLDU\ 9LGHRFRQ(DV\SD\3ULYDWH/LPLWHG IRUPHUO\'DWDFRP7HOHFRPPXQLFDWLRQV3ULYDWH/LPLWHG L 9LGHRFRQ(QHUJ\/LPLWHGDQGLWVVXEVLGLDU\ 3UR¿FLHQW(QHUJ\3ULYDWH/LPLWHGDQGLWVVXEVLGLDU\ XSWR0DUFK $SSOLHG(QHUJ\3ULYDWH/LPLWHG XSWR0DUFK Associates and Joint Ventures: 5DGLXP$SSOLDQFHV3ULYDWH/LPLWHG$VVRFLDWH 8QLW\3RZHU3ULYDWH/LPLWHG$VVRFLDWH XSWR0D\ 9,63///3$VVRFLDWHRI9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG ZHI-DQXDU\ 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG-RLQW9HQWXUH ,%9%UDVLO3HWUROHR/LPLWDGD -RLQW9HQWXUHRI9LGHRFRQ(QHUJ\%UD]LO/LPLWHG /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG XSWR0DUFK Key Management Personnel: 0U9HQXJRSDO1'KRRW0DQDJLQJ'LUHFWRU &(2 0U6XQLO7DQGRQ6HQLRU9LFH3UHVLGHQW 0U0DQGDU&-RVKL&RPSDQ\6HFUHWDU\ B. Transactions with the related parties: (` in Million) Particulars Year Name of Related Party Subsidiaries Associates Sales of Product )< 0LGGOH(DVW$SSOLDQFHV//& 2.01 )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 0LGGOH(DVW$SSOLDQFHV//& 14.03 Other Operating Revenue )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 2.03 )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 3UR¿FLHQW(QHUJ\3ULYDWH/LPLWHG 0.03 Income from Investments and Securities )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG (143.29) Division Other Non Operating Income )< 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG )< 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 2,250.00 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF Interest Recovered )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 9LGHRFRQ2LO9HQWXUHV/LPLWHG )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 424.14 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 9LGHRFRQ2LO9HQWXUHV/LPLWHG SBLC charges & other expenses )< 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG reiumbursed 9LGHRFRQ2LO9HQWXUHV/LPLWHG 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 2I¿FHDQGJHQHUDOH[SHQVHV )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 4.28 /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\ /LPLWHG )< 9LGHRFRQ2LO9HQWXUHV/LPLWHG 9LGHRFRQ*OREDO/LPLWHG 25.51 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 0.90 /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\ 0.39 /LPLWHG Purchase of Investments )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 12,380.49 79 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Long term advances given )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 1,111.93 9LGHRFRQ2LO9HQWXUHV/LPLWHG )< 9LGHRFRQ2LO9HQWXUHV/LPLWHG 1,390.13 /RQJWHUPDGYDQFHVUHFHLYHGEDFN )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG Short term advances given )< 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG 0.00 )< $SSOLHG(QHUJ\3ULYDWH/LPLWHG 0.00 5DGLXP(QHUJ\3ULYDWH/LPLWHG 0.01 6KRUWWHUPDGYDQFHVUHFHLYHGEDFN )< /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\ 0.00 /LPLWHG 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG 2.50 )< 9LGHRFRQ(DV\SD\3ULYDWH/LPLWHG 0.03 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG Increase in Other receivables )< 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 305.02 Decrease in Other receivables )< 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF 0.50 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG Increase in Other payables )< 9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG 24.25 9LGHRFRQ*OREDO/LPLWHG 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF 0.01 )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 18,452.32 Decrease in Other payables )< 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 550.43 )< 9LGHRFRQ*OREDO/LPLWHG 15.03 &RPHW3RZHU/LPLWHG 9LGHRFRQ(OHFWURQLFV 6KHQ]KHQ /LPLWHG 0.83 9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG - Remuneration to Key Management Personnel ` 33.20 Million (Previous Period ` 84.70 Million) & %DODQFHVGXHIURPWRWKHUHODWHGSDUWLHV (` in Million) Particulars Year Name of Related Party Subsidiaries Associates Long term advances given )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 9LGHRFRQ2LO9HQWXUHV/LPLWHG )< (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG 4,221.84 9LGHRFRQ2LO9HQWXUHV/LPLWHG Short term advances given )< $SSOLHG(QHUJ\3ULYDWH/LPLWHG 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG 5DGLXP(QHUJ\3ULYDWH/LPLWHG 0.58 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG 0.29 )< $SSOLHG(QHUJ\3ULYDWH/LPLWHG 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\ 0.00 /LPLWHG 5DGLXP(QHUJ\3ULYDWH/LPLWHG 0.58 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG Other receivables )< 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF 2.44 )< 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG 22.83 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF 2.44 Other payables )< 9LGHRFRQ*OREDO/LPLWHG 4.42 18 80 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) 9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG )< 9LGHRFRQ*OREDO/LPLWHG 9LGHRFRQ0DXULWLXV(QHUJ\/LPLWHG 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 18,452.32 Note 45 7KHUHDUHFHUWDLQGLVSXWHVZLWKWKH*RYHUQPHQWRI,QGLD ³*2,´ ZLWKUHVSHFWWRWKH3URGXFWLRQ6KDULQJ&RQWUDFWGDWHG2FWREHU ´5DYYD36&´ SHUWDLQLQJWR5DYYD2LO *DV)LHOGZKLFKZHUHUHIHUUHGWRPRUHWKDQRQHLQWHUQDWLRQDODUELWUDWLRQIRUUHVROXWLRQ7KHUHVSHFWLYH,QWHUQDWLRQDO$UELWUDO 7ULEXQDOVKDYHLVVXHGWKHLUUHVSHFWLYH$ZDUGVIURPWLPHWRWLPHVXEVWDQWLDOO\LQIDYRXURIWKH&RPSDQ\+RZHYHUWKH*2,KDVSUHIHUUHGWRFKDOOHQJHIHZ RIWKH$ZDUGVLQYDULRXV&RXUWVLQ,QGLDDQGRYHUVHDVEXWKDVQRWVXFFHHGHGVRIDULQDQ\RIWKH&RXUWV3HQGLQJ¿QDOUHVROXWLRQRIWKHGLVSXWHVFHUWDLQ DPRXQWVKDYHEHHQH[FHVVUHFRYHUHGGHGXFWHGRUVKRUWSDLGE\WKH*2,DQGRULWV1RPLQHHVZKLFKKDYHEHHQFKDOOHQJHGE\WKH&RPSDQ\DQGWKH &RPSDQ\LVVHHNLQJUHFRYHU\RIDPRXQWVH[FHVVLYHO\UHFRYHUHGGHGXFWHGRUVKRUWSDLGE\WKH*2,DQGRULWV1RPLQHHV%DVHGRQOHJDODGYLFHWKH Company believes its contentions will be upheld. Any further sum required to be paid by the Company or recoverable by the Company in respect of any RIWKHVHGLVSXWHVLQDFFRUGDQFHZLWKWKHGHWHUPLQDWLRQRIWKHDPRXQWE\WKH+RQ¶EOH$UELWUDO7ULEXQDOUHOHYDQWFRXUWVLQWKLVUHJDUGVKDOOEHDFFRXQWHG IRURQWKH¿QDORXWFRPHLQWKRVHPDWWHUV Note 46 7KH&RPSDQ\DORQJZLWKRWKHUDI¿OLDWHVHQWLWLHV FROOHFWLYHO\UHIHUUHGWRDVµ2EOLJRUV¶RULQGLYLGXDOO\DVµ%RUURZHU¶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¿QDQFLQJRIH[LVWLQJ5XSHH7HUP/RDQVRIWKH2EOLJRUV$FFRUGLQJO\ WKH5XSHH7HUP/RDQVZHUHDOORFDWHGWRUHVSHFWLYH2EOLJRUVEDVHGRQWKHLURXWVWDQGLQJDPRXQWDVRQ'HFHPEHUDQGWKHOHQGHUVKDYHDOVR GLUHFWO\GLVEXUVHGIXUWKHUDPRXQWVWRVRPHRIWKH2EOLJRUV$VWKH&RPSDQ\LVDFRREOLJRULWLVFRQWLQJHQWO\OLDEOHLQUHVSHFWRIWKHERUURZLQJVRIRWKHU 2EOLJRUV%RUURZHUVWRWKHH[WHQWRIRXWVWDQGLQJEDODQFHRI5XSHH7HUP/RDQVDVRQ0DUFKRI` 0LOOLRQ $VDW0DUFK` 50,822.98 Million). Note 47 7KH&RQVRUWLXPRIYDULRXVEDQNVKDYHVDQFWLRQHGWKH/HWWHURI&RPIRUW /R& 6WDQGE\/HWWHUVRI&UHGLW 6%/& IDFLOLW\WRWKH&RPSDQ\DQGLWVVXEVLGLDU\ 929//LPLWHG 929/ FROOHFWLYHO\UHIHUUHGWRDV 2EOLJRUV WRVHFXUHWKHIRUHLJQFXUUHQF\IDFLOLW\UDLVHGWREHUDLVHGE\9LGHRFRQ+\GURFDUERQ+ROGLQJV /LPLWHG 9++/ DQRYHUVHDVVXEVLGLDU\IURPLWVOHQGHUV7KH/R&6%/&IDFLOLW\LVVHFXUHGE\¿UVWUDQNLQJSOHGJHRIVKDUHVRI929/9++/DQG VKDUHVRIFHUWDLQVXEVLGLDULHVRI9++/DQG,%9%UDVLO3HWUROHR/LPLWDGDD MRLQWYHQWXUHRIDVXEVLGLDU\RI9++/FKDUJHRYHU¿[HGDVVHWVRIFHUWDLQ VXEVLGLDULHVRI9++/9++/ VVKDUHRIFDVKÀRZVIURPLGHQWL¿HGRLO JDVDVVHWVWKURXJKHVFURZRIUHFHLYDEOHV¿UVWUDQNLQJH[FOXVLYHFKDUJHRQ VSHFL¿HGEDQNDFFRXQWVIRUWKHEHQH¿WRIWKH/R&6%/&SURYLGHUVH[FOXVLYHFKDUJHRQRLO JDVIDFLOLW\VHUYLFLQJDFFRXQWRI2EOLJRUVVHWXSXQGHUWKH RQVKRUH7UXVWDQG5HWHQWLRQ$FFRXQWVQHJDWLYHOLHQRQVKDUHVRIRWKHUVXEVLGLDULHVRI9++/YL]9LGHRFRQ-3'$/LPLWHGDQG9LGHRFRQ$XVWUDOLD :$3/LPLWHG¿UVWSDULSDVVXFKDUJHRQ9LGHRFRQEUDQGDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRW0U3UDGLSNXPDU1'KRRWDQG0U 5DMNXPDU1'KRRW 'XULQJWKH\HDUVRPHRIWKH/2&6%/&/HQGHUVUHOHDVHGWKH&RPSDQ\IURPLWVREOLJDWLRQVDVDQREOLJRUFRREOLJRUXQGHUWKH/R&6%/&IDFLOLW\,Q WXUQWKH&RPSDQ\LVVXHGDFRUSRUDWHJXDUDQWHHLQIDYRXURIVXFKOHQGHUV$FFRUGLQJO\WKH&RPSDQ\LVFRQWLQJHQWO\OLDEOHLQUHVSHFWRIWKH/R&6%/& IDFLOLW\RI929/WRWKHH[WHQWRI` 0LOOLRQ $VDW0DUFK` 198,943.99 Million). Note 48 7KH'LUHFWRUDWHRI5HYHQXH,QWHOOLJHQFH0XPEDL=RQDO8QLW '5, KDVLVVXHG6KRZ&DXVH1RWLFH V 6&1 GDWHG6HSWHPEHUDQG'HFHPEHU WRWKH&RPSDQ\LQFRQQHFWLRQZLWKLPSRUWRI&RORXU3LFWXUH7XEHV &37V E\WKH&RPSDQ\DQGRWKHUFRQFHUQV9LGH6&1VWKH&RPSDQ\KDV EHHQDVNHGWRH[SODLQDVWRZK\WKHGHFODUHGYDOXHRI&37VLPSRUWHGVKRXOGQRWEHUHMHFWHGDQGUHGHWHUPLQHGDQGZK\WKHDPRXQWRIDQWLGXPSLQJ duty of `0LOOLRQDQGSHQDOW\WKHUHRQVKRXOGQRWEHUHFRYHUHGXQGHUWKHH[WHQGHGSHULRGXQGHUWKHSURYLVLRQVRIWKH&XVWRPV$FW ,QRUGHUWREX\SHDFHWKH&RPSDQ\¿OHGDSSOLFDWLRQZLWKWKH$GMXGLFDWLRQ$XWKRULW\ZKRYLGHRUGHUGDWHG$SULOGHWHUPLQHGWKDWWKHGHFODUHG YDOXHRIWKH&RPSDQ\LVOLDEOHWREHUHMHFWHGDQGUHGHWHUPLQHGXQGHU&XVWRPV9DOXDWLRQ5XOHVUHDGZLWK6HFWLRQRIWKH&XVWRPV$FW DQGWKH &RPSDQ\LVOLDEOHWRSD\PHQWRIDQWLGXPSLQJGXW\DPRXQWLQJWR` 0LOOLRQSD\DEOHRQWKHLPSRUWRI&37VDQGWKHSHQDOW\RIHTXLYDOHQWDPRXQW DORQJZLWKLQWHUHVWWKHUHRQXQGHU6HFWLRQ$RIWKH&XVWRPV$FW )XUWKHUWKH$GMXGLFDWLRQ$XWKRULW\LPSRVHGDSHQDOW\RI` 0.50 Million on the &RPSDQ\RQ+LJK6HD6DOHVXQGHU6HFWLRQ D RIWKH&XVWRPV$FW 6XEVHTXHQWO\WKH&RPSDQ\KDV¿OHGDQDSSHDODJDLQVWWKH2UGHUSDVVHG E\$GMXGLFDWLRQ$XWKRULW\EHIRUH7KH&XVWRPV([FLVHDQG6HUYLFH7D[$SSHOODWH7ULEXQDO &(67$7 DQGWKHVDPHLVSHQGLQJEHIRUHWKHVDLG&(67$7 7KH&RPSDQ\KDVEHHQDGYLVHGE\LWVFRXQVHOVWKDWWKH2UGHUSDVVHGE\$GMXGLFDWLRQ$XWKRULW\LVXQWHQDEOHLQWKHFRXUWRIODZV+HQFHQRSURYLVLRQ KDVEHHQFRQVLGHUHGQHFHVVDU\LQWKH¿QDQFLDOVWDWHPHQWV Note 49 ,QWHVD6DQSDROR6S$DQ,WDOLDQEDQNKDGLQLWLDWHGZLQGLQJXSSURFHHGLQJVDJDLQVWWKH&RPSDQ\RQWKHEDVLVRIµ3DWURQDJH/HWWHU¶LVVXHGE\WKH &RPSDQ\WRWKHVDLG,WDOLDQEDQNLQ-XQHIRU¿QDQFLDODVVLVWDQFHJLYHQWRWKHWKHQRQHOHYHOVWHSGRZQVXEVLGLDU\0V9'&7HFKQRORJLHV6S$ DQ,WDOLDQGHIXQFWFRPSDQ\DFTXLUHGE\DQRWKHUVXEVLGLDU\RIWKH&RPSDQ\0V(DJOH&RUSRUDWLRQ/LPLWHGUHJLVWHUHGLQ&D\PDQ,VODQG6LQJOHMXGJH vide judgement dated December 5, 2013 passed a conditional order of winding up of the Company on its failure to deposit in court the amount of ` 0LOOLRQHTXLYDOHQWRI(XUR0LOOLRQZKLFKZDVFRQ¿UPHGE\WKHGLYLVLRQEHQFKRIWKH+LJK&RXUWRI-XGLFDWXUHDW%RPED\RQ-XO\ 7KH&RPSDQ\KDGFKDOOHQJHGWKHRUGHURI%RPED\+LJK&RXUWE\ZD\RI6SHFLDO/HDYH3HWLWLRQ 6/3 LQWKH6XSUHPH&RXUW7KH&RPSDQ\KDG GHQLHGLWVOLDELOLW\RXWRIWKHVDLGµ3DWURQDJH/HWWHU¶7KH&RPSDQ\SHQGLQJWKH¿QDOGLVSRVDORI6/3DJUHHGWRFUHDWHOLHQRQ)L[HG'HSRVLW5HFHLSWV of `0LOOLRQDQG` 1,210.40 Million in favour of the Registrar of Supreme Court. The Hon’ble Supreme Court had stayed the impugned order RIWKH%RPED\+LJK&RXUWDQGGLUHFWHGWRLVVXHQRWLFHIRUIXUWKHUKHDULQJRIWKHPDWWHU7KH+RQ¶EOH6XSUHPH&RXUWKDGDOVRDGPLWWHG6/3¿OHGE\WKH &RPSDQ\DQG¿QDOKHDULQJZDVSHQGLQJ 81 Annual Report 2017-18 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) ,QWHVD6DQSDROR6S$KDGDOVRREWDLQHGH[SDUWHGHFUHHDJDLQVWWKH&RPSDQ\IURP7XULQ&RXUWRI,WDO\DQGRQWKHEDVLVRIVDLGGHFUHH,QWHVD6DQSDROR 6S$KDG¿OHGVXLWEHDULQJ1RLQ%RPED\+LJK&RXUWIRUREWDLQLQJGHFUHHDJDLQVWWKH&RPSDQ\7KH&RPSDQ\KDGDSSHDUHGLQWKHPDWWHU DQGZDVFRQWHVWLQJWKHVDLGH[SDUWHGHFUHHRQPHULW:KLOHWKHDIRUHVDLGVXLWVDQGOLWLJDWLRQZHUHLQSURJUHVVWKH&RPSDQ\DQG,QWHVDVHWWOHGWKH PDWWHUE\¿OLQJWKH&RQVHQW7HUPVEHIRUHWKH+RQ EOH6XSUHPH&RXUWDW(XUR0LOOLRQHTXLYDOHQWWR` 1,434.31 Million. As per the Consent Terms the Company has paid `0LOOLRQWRZDUGVIXOODQG¿QDOUHSD\PHQWRISULQFLSDOVXPDQG,QWHVDZDLYHGRIIDOOLWVRWKHUFODLPVLQFOXGLQJLQWHUHVWGXH RQORDQDYDLOHGE\9'&7HFKQRORJLHV6S$LQIXOODQG¿QDOVHWWOHPHQWDQGDOOWKHSHQGLQJVXLWVSHWLWLRQVDUHZLWKGUDZQE\ERWKWKHSDUWLHV)XUWKHU DOOULJKWVLQWHUHVWDQGFODLPVDJDLQVW9'&7HFKQRORJLHV6S$KDYHEHHQDVVLJQHGDQGWUDQVIHUUHGWRWKH&RPSDQ\+RZHYHUFRQVLGHULQJWKDWWKHVDLG 9'&7HFKQRORJLHV6S$LVGHIXQFWDQGXQGHUOLTXLGDWLRQVDLGDPRXQWSDLGRQVHWWOHPHQWLVFKDUJHGWRUHYHQXH Note 50 The Company has, directly and through its subsidiaries, made investments of ` 0LOOLRQLQ9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ WKH subsidiary. 7KRXJK97/KDVKXJHDFFXPXODWHGORVVHVDQGKDVEHHQUHIHUUHGWR1DWLRQDO&RPSDQ\/DZ7ULEXQDO 1&/7 XQGHUWKH,QVROYHQF\DQG%DQNUXSWF\&RGH DVDPHQGHGLWVQHWZRUWKLVSRVLWLYHDQGWKHPDQDJHPHQWLVFRQ¿GHQWRIFRQWLQXLQJLWVFRPPHUFLDORSHUDWLRQVLQWKH1DWLRQDO/RQJ'LVWDQFH 1/' DQG,QWHUQDWLRQDO/RQJ'LVWDQFH ,/' %XVLQHVV$FFRUGLQJO\LQWKHRSLQLRQRIWKHPDQDJHPHQWQRSURYLVLRQLVUHTXLUHGIRUGLPLQXWLRQLQWKHYDOXHRI DIRUHVDLGLQYHVWPHQWVDQGDGYDQFHVWR97/ Note 51 7KH FRQ¿UPDWLRQV DQG UHFRQFLOLDWLRQ RI EDODQFHV RI FHUWDLQ VHFXUHG DQG XQVHFXUHG ORDQV EDODQFHV ZLWK EDQNV WUDGH UHFHLYDEOHV WUDGH DQG RWKHU SD\DEOHVDQGORDQVDQGDGYDQFHVDUHSHQGLQJ7KHPDQDJHPHQWLVLQWKHSURFHVVRIREWDLQLQJFRQ¿UPDWLRQVDQGUHFRQFLOLDWLRQRIEDODQFHV,QWKH RSLQLRQRIWKHPDQDJHPHQWWKHUHZLOOQRWEHDQ\PDWHULDOLPSDFWRQWKHVWDQGDORQH,QG$6¿QDQFLDOVWDWHPHQWV Note 52 State Bank of India, the lead bank of the Company has initiated Corporate Insolvency Resolution Process (CIRP) for the Company under the Insolvency DQG%DQNUXSWF\&RGHDVDPHQGHGDQGKDV¿OHGWKHSHWLWLRQLQ1DWLRQDO&RPSDQ\/DZ7ULEXQDO 1&/7 0XPEDL7KHPDWWHULVXQGHUFRQVLGHUDWLRQ RIWKH1&/7,QYLHZRIWKHDERYHDQGLQYLHZRIWKHSHUVLVWHQWVHYHUHVWUDLQVRQWKHZRUNLQJFDSLWDOIRUPRUHWKDQD\HDUWKHUHLVDVLJQL¿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¿QLVKHGJRRGVVWRFN LQSURFHVVUHFHLYDEOHVHWFMXVWL¿DEO\DVVXPLQJWKDWWKHJRLQJFRQFHUQFRQFHSWVWDQGVYLWLDWHGDQGQHFHVVDU\DGMXVWPHQWVZLOOEHHIIHFWHGLQWKHGXH course. Note 53 7KHPDQXIDFWXULQJDFWLYLW\RI*ODVV6KHOOGLYLVLRQORFDWHGDW%KDUXFKZKLFKPDQXIDFWXUHGSDQHOVDQGIXQQHOVXVHGLQFRORXUSLFWXUHWXEHIRUFRORXU WHOHYLVLRQ KDV EHHQ VXVSHQGHG IURP -XO\ GXH WR SRRU GHPDQG RI WKHVH SURGXFWV GXH WR FKDQJHV LQ WHFKQRORJ\ IRU FRORXU WHOHYLVLRQV 7KH PDQDJHPHQWLVRIWKHYLHZWKDWWKHVDLGIDFWRU\DQGIDFLOLWLHVFDQEHZLWKVRPHPRGL¿FDWLRQVXVHGIRUSURGXFWLRQRIVRODUSDQHOJODVVVRODUOHQVHJODVV ¿EUHDQGJODVVEORFNVZKLFKKDYHJRRGGHPDQGLQWKHPDUNHW,QYLHZRIWKHDERYHQRSURYLVLRQIRULPSDLUPHQWKDVEHHQFRQVLGHUHGQHFHVVDU\IRUWKH assets of the glass shell division at this stage. Note 54 7KHUHDUHQRDPRXQWVGXHDQGRXWVWDQGLQJWREHFUHGLWHGWRWKH,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ)XQG Note 55.1 Unincorporated Joint Ventures: 7KH)LQDQFLDO6WDWHPHQWVUHÀHFWWKHVKDUHRIWKH&RPSDQ\LQWKHDVVHWVDQGWKHOLDELOLWLHVDVZHOODVWKHLQFRPHDQGWKHH[SHQGLWXUHRI-RLQW9HQWXUH 2SHUDWLRQVRQDOLQHE\OLQHEDVLV7KH&RPSDQ\LQFRUSRUDWHVLWVVKDUHLQWKHRSHUDWLRQVRIWKH-RLQW9HQWXUHEDVHGRQVWDWHPHQWVRIDFFRXQWUHFHLYHG IURPWKH2SHUDWRU7KH&RPSDQ\KDVLQWHUPVRI6LJQL¿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ote 55.2 Incorporated Jointly Controlled Entities: L 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUHV3ULYDWH/LPLWHGLVD -RLQW9HQWXUH&RPSDQ\LQFRUSRUDWHGLQ,QGLDZLWK,Q¿QLW\,QIRWHFK3DUNV/LPLWHGWR FDUU\RQWKHEXVLQHVVRILQIUDVWUXFWXUHGHYHORSPHQWOLNHFRQVWUXFWLRQRI,7,7HV3DUNV%LRWHFK3DUNVHWF7KH-RLQW9HQWXUH&RPSDQ\KDVQRW commenced its commercial operations. LL /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHGLVD-RLQW9HQWXUH&RPSDQ\LQFRUSRUDWHGLQ,QGLDWRFDUU\QRQOLIHLQVXUDQFHEXVLQHVVLQ ,QGLD8SWR0DUFKWKH&RPSDQ\KROGVVWDNHLQMRLQWYHQWXUHDQGWKHUHPDLQLQJHTXLW\LVRZQHGE\/LEHUW\0XWXDO,QVXDQFH*URXS $VRQ0DUFKWKH&RPSDQ\VROGH[LWHGLWVVWDNHRQWKLVMRLQWYHQWXUH LLL 7KH¿QDQFLDOLQWHUHVWRIWKH&RPSDQ\LQWKHMRLQWO\FRQWUROOHGLQFRUSRUDWHGHQWLW\EDVHGRQ¿QDQFLDOVWDWHPHQWUHFHLYHGLVDVXQGHU (` in Million) Company's share in March 31, 2018 March 31, 2017 Assets 5,455.35 /LDELOLWLHV Income ([SHQVHV 4,531.38 7D[ 82 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018 (Continued) Note 55.3 7KHHVWLPDWHGDPRXQWRIFRPPLWPHQWRIWKH&RPSDQ\WRZDUGVFRQWULEXWLRQLQYDULRXV-RLQW9HQWXUHVIRUQH[W\HDUEDVHGRQPLQLPXPZRUNSURJUDPLV `0LOOLRQ $VDW0DUFK`0LOOLRQ Note 56 7KH&RPSDQ\KDVNHSWWKHLQYHVWPHQWDFWLYLWLHVVHSDUDWHDQGGLVWLQFWIURPRWKHUEXVLQHVVHV&RQVHTXHQWO\DOOWKHLQFRPHDQGH[SHQGLWXUHSHUWDLQLQJ WRLQYHVWPHQWDFWLYLWLHVKDYHEHHQDOORFDWHGWRWKH,QYHVWPHQWVDQG6HFXULWLHV'LYLVLRQDQGWKHLQFRPH ORVV DIWHUQHWWLQJRIWKHUHODWHGH[SHQGLWXUHKDV EHHQVKRZQDV³,QFRPH /RVV IURP,QYHVWPHQWVDQG6HFXULWLHV'LYLVLRQXQGHU³2WKHU,QFRPH´ZKLFKLQFOXGHVLQUHVSHFWRIWKHORQJWHUPLQYHVWPHQWV dividend of `1.39 Million (Previous year ` 0LOOLRQ DQGSUR¿WRQVDOHGLVSRVDORILQYHVWPHQWVRI`0LOOLRQ 3UHYLRXV\HDU`0LOOLRQ C.I.F. Value of Imports, Expenditure and Earnings in Foreign Currency (` in Million) Particulars For the year ended For 15 months ended March 31, 2018 March 31, 2017 Note 57 a) &,)9DOXHRI,PSRUWV Raw Materials &DSLWDO*RRGV LQFOXGLQJDGYDQFHV 0.23 190.15 b) ([SHQGLWXUHLQFXUUHGLQ)RUHLJQ&XUUHQF\ Interest and Bank Charges 151.11 Royalty 402.35 Travelling 3.40 2WKHUV 4.58 c) 2WKHU(DUQLQJV5HFHLSWVLQ)RUHLJQ&XUUHQF\ )2%9DOXHRI([SRUWV 989.25 2WKHUV LQFOXGLQJUHLPEXUVHPHQWRI([SHQVHV 4,145.10 Note 58 6KDUHRIWKH&RPSDQ\LQUHPDLQLQJUHVHUYHVRQSURYHGDQGSUREDEOHEDVLV DVSHU2SHUDWRU VHVWLPDWHV LQ5DYYD2LO *DV¿HOG 8QLQFRUSRUDWHG -RLQW 9HQWXUHUHOLHGXSRQE\WKHDXGLWRUVEHLQJWHFKQLFDOHYDOXDWLRQPDWWHU Particulars Unit of measurement March 31, 2018 March 31, 2017 &UXGH2LO Million Metric Tonnes 0.19 1DWXUDO*DV Million Cubic Metres Note 59 7KH)LQDQFLDO,QVWLWXWLRQVKDYHDULJKWWRFRQYHUWDWWKHLURSWLRQWKHZKROHRXWVWDQGLQJDPRXQWRIWHUPORDQVRUDSDUWQRWH[FHHGLQJRIGHIDXOWHG DPRXQWRIORDQZKLFKHYHULVORZHULQWRIXOO\SDLGXS(TXLW\6KDUHVRIWKH&RPSDQ\DWSDURQGHIDXOWLQSD\PHQWVUHSD\PHQWVRIWKUHHFRQVHFXWLYH LQVWDOOPHQWVRISULQFLSDODQGRULQWHUHVWWKHUHRQRURQPLVPDQDJHPHQWRIWKHDIIDLUVRIWKH&RPSDQ\6XFKFRQYHUVLRQDUHFRQVLGHUHGWREHDQWLGLOXWLYH in nature and hence not considered for computation of the diluted earnings per share. Note 60 7KH¿JXUHVIRUWKHFRPSDUDWLYHSHULRGUHSUHVHQWVSUR¿WORVVIRUWKHPRQWKSHULRGHQGHG0DUFKZKLOHWKH¿JXUHVIRUWKHFXUUHQWSHULRGDUH IRUWKHPRQWKHQGHG0DUFK$FFRUGLQJO\LQDGGLWLRQWRWKHIDFWRUVKLJKOLJKWHGLQWKHQRWHVDERYHWKH¿JXUHVIRUWKHFRPSDUDWLYHSHULRG DUHQRWVWULFWO\FRPSDUDEOHWRWKHSUR¿WORVVIRUWKHFXUUHQW\HDU3UHYLRXVSHULRG¿JXUHVKDYHEHHQUHFODVVL¿HGUHJURXSHGUHFDVWHGWRFRQ¿UPWRWKH FODVVL¿FDWLRQRIWKHFXUUHQW\HDU Note 61 7KH&RPSDQ\KDVUHFHLYHG*UDQWIURP2]RQH&HOO0LQLVWU\RI(QYLURQPHQW )RUHVWV*RYHUQPHQWRI,QGLDIRU¿QDQFLQJWKHPDFKLQHU\XQGHUWKH 2]RQH3URMHFW$VSHUWKHDFFRXQWLQJSROLF\IROORZHGE\WKH&RPSDQ\WKH*UDQWUHFHLYHGIRU2]RQH3URMHFWKDVEHHQWUHDWHGDVGHIHUUHGLQFRPHWR EHUHFRJQLVHGLQWKH6WDWHPHQWRI3UR¿WDQG/RVVRYHUWKHXVHIXOOLIHRIWKHDVVHWVXQGHUWKH2]RQH3URMHFW$FFRUGLQJO\DQDPRXQWRI`0LOOLRQ (Previous period `0LOOLRQ KDVEHHQDOORFDWHGWRLQFRPHDQGFUHGLWHGWRRWKHUQRQRSHUDWLQJLQFRPHLQSURSRUWLRQWRWKHGHSUHFLDWLRQFKDUJHGRQ those assets for theSHULRG7KHEDODQFHGHIHUUHGLQFRPHKDVEHHQFDUULHGWR%DODQFH6KHHWDV*UDQWIRU2]RQH3URMHFW 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKHWKH¿QDQFLDOVWDWHPHQWV As Per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 ',1 Place : Mumbai 'DWH -XQH 83 Annual Report 2017-18 INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS To The Members of VIDEOCON INDUSTRIES LIMITED 1. Report on the Ind AS Consolidated Financial Statements We have audited the accompanying Consolidated Ind AS Financial Statements of VIDEOCON INDUSTRIES LIMITED (“the Holding Company”) and its subsidiaries (together referred to as “the Group”), its associates and jointly controlled entities comprising of the Consolidated Balance 6KHHWDVDW0DUFKWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVV LQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPH WKH&RQVROLGDWHG&DVK)ORZ 6WDWHPHQWDQGWKH&RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ(TXLW\IRUWKH\HDURQWKDWGDWHDQGDVXPPDU\RIWKHVLJQL¿FDQWDFFRXQWLQJSROLFLHVDQG other explanatory information (hereinafter referred to as “the Consolidated Ind AS Financial Statements”). 2. Management’s Responsibility for the Consolidated Ind AS Financial Statements 7KH+ROGLQJ&RPSDQ\¶V%RDUGRI'LUHFWRUVLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQRIWKHVHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVLQWHUPRIWKH UHTXLUHPHQWRIWKH&RPSDQLHV$FW ³WKH$FW´ WKDWJLYHDWUXHDQGIDLUYLHZRIWKHFRQVROLGDWHG¿QDQFLDOSRVLWLRQFRQVROLGDWHG¿QDQFLDO SHUIRUPDQFH LQFOXGLQJ RWKHU FRPSUHKHQVLYH LQFRPH FRQVROLGDWHG FDVK ÀRZV DQG FRQVROLGDWHG FKDQJHV LQ HTXLW\ RI WKH *URXS LQFOXGLQJ LWV DVVRFLDWHVDQGMRLQWO\FRQWUROOHGHQWLWLHVLQDFFRUGDQFHZLWKWKH,QGLDQ$FFRXQWLQJ6WDQGDUGV ,QG$6 SUHVFULEHGXQGHU6HFWLRQRIWKH$FWUHDG ZLWKWKH&RPSDQLHV ,QGLDQ$FFRXQWLQJ6WDQGDUGV 5XOHVDVDPHQGHGDQGRWKHUDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLD The respective Board of Directors of the companies included in the Group and its associates and jointly controlled companies are responsible IRU PDLQWHQDQFH RI DGHTXDWH DFFRXQWLQJ UHFRUGV LQ DFFRUGDQFH ZLWK WKH SURYLVLRQV RI WKH$FW IRU VDIHJXDUGLQJ WKH DVVHWV RI WKH *URXS DQG for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments DQGHVWLPDWHVWKDWDUHUHDVRQDEOHDQGSUXGHQW DQGGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRIDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUH operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the FRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZDQGDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU ZKLFKKDYHEHHQXVHGIRUWKHSXUSRVHRISUHSDUDWLRQRIWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVE\WKH'LUHFWRUVRIWKH+ROGLQJ&RPSDQ\DV aforesaid. 3. Auditors’ Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW,QFRQGXFWLQJRXUDXGLWZHKDYH WDNHQLQWRDFFRXQWWKHSURYLVLRQVRIWKH$FWWKHDFFRXQWLQJDQGDXGLWLQJVWDQGDUGVDQGPDWWHUVZKLFKDUHUHTXLUHGWREHLQFOXGHGLQWKHDXGLWUHSRUW XQGHUWKHSURYLVLRQVRIWKH$FWDQGWKH5XOHVPDGHWKHUHXQGHU :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKH6WDQGDUGVRQ$XGLWLQJVSHFL¿HGXQGHU6HFWLRQ RIWKH$FW7KRVH6WDQGDUGVUHTXLUHWKDWZH FRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUPWKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUWKHFRQVROLGDWHG,QG$6¿QDQFLDO statements are free from material misstatements. $QDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDPRXQWVDQGGLVFORVXUHVLQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWV The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated ,QG$6 ¿QDQFLDO VWDWHPHQWV ZKHWKHU GXH WR IUDXG RU HUURU ,Q PDNLQJ WKRVH ULVN DVVHVVPHQWV WKH DXGLWRU FRQVLGHUV LQWHUQDO ¿QDQFLDO FRQWURO UHOHYDQWWRWKH+ROGLQJ&RPSDQ\¶VSUHSDUDWLRQRIWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVWKDWJLYHDWUXHDQGIDLUYLHZLQRUGHUWRGHVLJQDXGLW procedures that are appropriate in the circumstances. 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Other Matters D :HGLGQRWDXGLWWKH¿QDQFLDOVWDWHPHQWVRIVXEVLGLDULHVZKRVH¿QDQFLDOVWDWHPHQWVUHÀHFWWRWDODVVHWVRI` 0LOOLRQDVDW March 31, 2018, total revenue of ` 0LOOLRQDQGQHWFDVKÀRZVDPRXQWLQJWR` (293.21) Million for the year ended on that date, as FRQVLGHUHGLQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWV7KHVH¿QDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\RWKHUDXGLWRUVZKRVHUHSRUWV KDYHEHHQIXUQLVKHGWRXVE\WKHPDQDJHPHQWDQGRXURSLQLRQRQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHVWRWKHDPRXQWV DQGGLVFORVXUHVLQFOXGHGLQUHVSHFWRIWKHVHVXEVLGLDULHVDQGRXUUHSRUWLQWHUPVRIVXEVHFWLRQV DQG RI6HFWLRQRIWKH$FWLQVR far as it relates to the aforesaid subsidiaries, is based solely on the reports of other auditors. E 7KHDFFRPSDQ\LQJFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVLQFOXGHWRWDODVVHWVRI` 16,786.72 Million as at March 31, 2018 and total revenue of `0LOOLRQDQGQHWFDVKÀRZVDPRXQWLQJWR` 0LOOLRQIRUWKH\HDUHQGHGRQWKDWGDWHLQUHVSHFWRIIRUHLJQVXEVLGLDULHVZKLFK KDYHEHHQDXGLWHGE\RWKHUDXGLWRUVZKLFK¿QDQFLDOVWDWHPHQWVSUHSDUHGXQGHUWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV µ*$$3V¶ DFFHSWHGLQWKHUHVSHFWLYHFRXQWULHVRWKHU¿QDQFLDOLQIRUPDWLRQDQGDXGLWRU¶VUHSRUWKDYHEHHQIXUQLVKHGWRXVE\WKH&RPSDQ\¶VPDQDJHPHQW 7KHPDQDJHPHQWRIWKH&RPSDQ\KDVFRQYHUWHGWKHVHDXGLWHG¿QDQFLDOVWDWHPHQWVIURPDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH respective countries to accounting principles generally accepted in India, for the purpose of preparation of the Company’s consolidated Ind $6¿QDQFLDOVWDWHPHQWVXQGHUDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLD:HDXGLWHGWKHDGMXVWPHQWVWKDWZHUHDSSOLHGWRSUHSDUHWKH FRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVPDGHE\WKH&RPSDQ\¶VPDQDJHPHQWWRFRQYHUWWKHVHVXEVLGLDULHV¶DQGMRLQWO\FRQWUROOHGHQWLW\¶V ¿QDQFLDO VWDWHPHQWV DQG LQIRUPDWLRQ IURP DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKHLU UHVSHFWLYH FRXQWULHV WR DFFRXQWLQJ SULQFLSOHV JHQHUDOO\DFFHSWHGLQ,QGLDDQGIROORZHGE\WKH3DUHQW&RPSDQ\,QRXURSLQLRQWKHDGMXVWPHQWVKDYHEHHQSURSHUO\DSSOLHG:HZHUHQRW HQJDJHGWRDXGLWUHYLHZRUDSSO\DQ\SURFHGXUHWRWKH¿QDQFLDOVWDWHPHQWVRIWKHVHVXEVLGLDULHVDQGMRLQWO\FRQWUROOHGHQWLW\RWKHUWKDQ ZLWKUHVSHFWWRWKHDGMXVWPHQWVDQGDFFRUGLQJO\ZHGRQRWH[SUHVVDQRSLQLRQRQWKH¿QDQFLDOVWDWHPHQWVRIWKHVHVXEVLGLDULHVDQGMRLQWO\ FRQWUROOHGHQWLW\IURPZKLFKVXFKDGMXVWPHQWVZHUHGHULYHG2XURSLQLRQRQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHV WRWKHDPRXQWVDQGGLVFORVXUHVLQFOXGHGLQUHVSHFWRIWKHVHVXEVLGLDULHVDQGMRLQWO\FRQWUROOHGHQWLW\DQGRXUUHSRUWVLQWHUPVRIVXEVHFWLRQV DQG RI6HFWLRQRIWKH$FWLQVRIDUDVLWUHODWHVWRWKHDIRUHVDLGVXEVLGLDULHVDQGMRLQWO\FRQWUROOHGHQWLW\LVEDVHGVROHO\RQWKH reports of such other auditors under the aforementioned GAAPs in respective countries and the aforesaid conversion undertaken by the management examined by us on a test basis. 85 Annual Report 2017-18 F 7KHDFFRPSDQ\LQJFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVLQFOXGHVWRWDODVVHWVRI`0LOOLRQDVDW0DUFKWRWDOUHYHQXH of `1LODQGQHWFDVKÀRZVDPRXQWLQJWR` 0LOOLRQIRUWKH\HDUHQGHGRQWKDWGDWHLQUHVSHFWRIIRUHLJQVXEVLGLDULHVIRUZKLFKWKH &RPSDQ\KDVUHFHLYHGDXGLWHG¿QDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG'HFHPEHU ZKLFKKDYHEHHQDXGLWHGE\RWKHUDXGLWRU DQG XQDXGLWHG¿QDQFLDOVWDWHPHQWVIRUWKHSHULRG-DQXDU\WR0DUFKRQZKLFKZHKDYHSODFHGUHOLDQFH G 7KHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVDOVRLQFOXGHWKH&RPSDQ\¶VVKDUHRISUR¿WRI` 1,991.71 Million for the year ended March 31, LQUHVSHFWRIDVVRFLDWHDQGMRLQWYHQWXUHVZKRVH¿QDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\RWKHUDXGLWRUVDQGZKRVHUHSRUWVKDYH EHHQIXUQLVKHGWRXVE\WKH&RPSDQ\¶V0DQDJHPHQWDQGRXURSLQLRQRQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHV WRWKHDPRXQWVDQGGLVFORVXUHVLQFOXGHGLQUHVSHFWRIWKHVHDVVRFLDWHVDQGMRLQWYHQWXUHVDQGRXUUHSRUWVLQWHUPVRIVXEVHFWLRQV DQG RI6HFWLRQRIWKH$FWLQVRIDUDVLWUHODWHVWRWKHDIRUHVDLGDVVRFLDWHVDQGMRLQWYHQWXUHVLVEDVHGVROHO\RQWKHUHSRUWVRIVXFKRWKHU auditors. H :HGLGQRWDXGLWWKH¿QDQFLDOVWDWHPHQWVRIVXEVLGLDULHVZKRVH¿QDQFLDOVWDWHPHQWVUHÀHFWWRWDODVVHWVRI`0LOOLRQDVDW0DUFK 2018, total revenue of `1LODQGQHWFDVKÀRZVDPRXQWLQJWR`1LOIRUWKHSHULRGHQGHGRQWKDWGDWH7KHVH¿QDQFLDOVWDWHPHQWVDUHXQDXGLWHG DQGKDYHEHHQIXUQLVKHGWRXVE\WKHPDQDJHPHQWDQGRXURSLQLRQRQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVLQVRIDUDVLWUHODWHVWRWKH DPRXQWVDQGGLVFORVXUHVLQFOXGHGLQUHVSHFWRIWKHVHVXEVLGLDULHVDQGRXUUHSRUWLQWHUPVRIVXEVHFWLRQV DQG RI6HFWLRQRIWKH $FWLQVRIDUDVLWUHODWHVWRWKHDIRUHVDLGVXEVLGLDULHVLVEDVHGVROHO\RQVXFKXQDXGLWHG¿QDQFLDOVWDWHPHQWV,QRXURSLQLRQDQGDFFRUGLQJ WRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVE\WKHPDQDJHPHQWWKHVH¿QDQFLDOVWDWHPHQWVDUHQRWPDWHULDOWRWKH*URXS I 7KHFRPSDUDWLYH¿QDQFLDOLQIRUPDWLRQRIWKH*URXSLQFOXGLQJLWVDVVRFLDWHVDQGMRLQWO\FRQWUROOHGHQWLWLHVIRUWKHSHULRGHQGHG0DUFK DQGWKHWUDQVLWLRQGDWHRSHQLQJEDODQFHVKHHWDVDW-DQXDU\LQFOXGHGLQWKHVH&RQVROLGDWHG,QG$6)LQDQFLDO6WDWHPHQWV DUHEDVHGRQWKHSUHYLRXVO\LVVXHGVWDWXWRU\FRQVROLGDWHG¿QDQFLDOVWDWHPHQWVSUHSDUHGLQDFFRUGDQFHZLWKWKH&RPSDQLHV $FFRXQWLQJ 6WDQGDUGV 5XOHVDXGLWHGE\WKHSUHGHFHVVRUDXGLWRUVZKRVHUHSRUWIRUWKHSHULRGHQGHG0DUFKDQG'HFHPEHU GDWHG1RYHPEHUDQG0D\UHVSHFWLYHO\H[SUHVVHGPRGL¿HGRSLQLRQRQWKRVHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVDVDGMXVWHG IRUWKHGLIIHUHQFHVLQWKHDFFRXQWLQJSULQFLSOHVDGRSWHGE\WKH*URXSRQWUDQVLWLRQWRWKH,QG$6ZKLFKKDYHEHHQDXGLWHGE\XV 2XURSLQLRQRQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVDQGRXUUHSRUWRQWKH2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWVEHORZLVQRW PRGL¿HGLQUHVSHFWRIWKHDERYHPDWWHUV 8. Report on Other Legal and Regulatory Requirements $VUHTXLUHGE\VHFWLRQ RIWKH$FWEDVHGRQRXUDXGLWDQGRQFRQVLGHUDWLRQRIWKHUHSRUWVRIRWKHUDXGLWRUVRQVHSDUDWH¿QDQFLDOVWDWHPHQWV DQGRWKHU¿QDQFLDOLQIRUPDWLRQRIVXEVLGLDULHVDVVRFLDWHVDQGMRLQWYHQWXUHVUHIHUUHGLQWKH2WKHU0DWWHUVSDUDJUDSKDERYHZHUHSRUWWRWKHH[WHQW applicable, that: D :HKDYHVRXJKWDQGREWDLQHGDOOWKHLQIRUPDWLRQDQGH[SODQDWLRQVZKLFKWRWKHEHVWRIRXUNQRZOHGJHDQGEHOLHIZHUHQHFHVVDU\IRUWKH purpose of our audit of the aforesaid Consolidated Ind AS Financial Statements. E ,QRXURSLQLRQSURSHUERRNVRIDFFRXQWDVUHTXLUHGE\ODZUHODWLQJWRSUHSDUDWLRQRIWKHDIRUHVDLGFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVKDYHEHHQ kept so far as it appears from our examination of those books and the reports of the other auditors. F 7KH&RQVROLGDWHG%DODQFH6KHHWWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVVLQFOXGLQJ2WKHU&RPSUHKHQVLYH,QFRPHWKH&RQVROLGDWHG &DVK)ORZ6WDWHPHQWDQG&RQVROLGDWHG6WDWHPHQWRI&KDQJHVLQ(TXLW\GHDOWZLWKE\WKLV5HSRUWDUHLQDJUHHPHQWZLWKWKHUHOHYDQWERRNV RIDFFRXQWPDLQWDLQHGIRUWKHSXUSRVHRISUHSDUDWLRQRIWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWV d) In our opinion, H[FHSWIRUWKHHIIHFWVRIWKHPDWWHUGHVFULEHGLQWKH%DVLVIRU4XDOL¿HG2SLQLRQSDUDJUDSKDERYHDQG,QG$6µ,PSDLUPHQW RI$VVHWV¶WKHDIRUHVDLGFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVFRPSO\ZLWKWKH$FFRXQWLQJ6WDQGDUGVVSHFL¿HGXQGHU6HFWLRQRIWKH$FW H 7KHPDWWHUUHODWLQJWRWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVRI3DUHQWDQGWKHVXEVLGLDULHVDQGWKHMRLQWYHQWXUHVHQWLW\RQJRLQJFRQFHUQ EDVLVDQGRWKHUPDWWHUVGHVFULEHGXQGHU%DVLVIRU4XDOL¿HG2SLQLRQSDUDJUDSKDERYHDQGDOVRXQGHU(PSKDVLVRI0DWWHUSDUDJUDSK DERYHLQRXURSLQLRQPD\KDYHDGYHUVHHIIHFWRQWKHIXQFWLRQLQJRIWKH&RPSDQ\ I 2QWKHEDVLVRIWKHZULWWHQUHSUHVHQWDWLRQVUHFHLYHGIURPWKHGLUHFWRUVRIWKH+ROGLQJ&RPSDQ\DVRQ0DUFKWDNHQRQUHFRUGE\WKH Board of Directors of the Holding Company and the reports of the other statutory auditors of its subsidiary companies, associate companies and jointly controlled companies incorporated in India, none of the directors of the Group companies, its associate companies and jointly FRQWUROOHGFRPSDQLHVLQFRUSRUDWHGLQ,QGLDLVGLVTXDOL¿HGDVRQ0DUFKIURPEHLQJDSSRLQWHGDVDGLUHFWRULQWHUPVRI6HFWLRQ of the Act; J :LWKUHVSHFWWRWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJDQGWKHRSHUDWLQJHIIHFWLYHQHVVRIVXFKFRQWUROVUHIHUWR RXUVHSDUDWH5HSRUWVLQ³$QQH[XUH$´ZKLFKLVEDVHGRQWKHDXGLWRUV¶UHSRUWRIWKH+ROGLQJ&RPSDQ\VXEVLGLDU\FRPSDQLHVDVVRFLDWHVDQG MRLQWYHQWXUHVLQFRUSRUDWHGLQ,QGLD2XUUHSRUWH[SUHVVHVDQXQPRGL¿HGRSLQLRQRQWKHDGHTXDF\DQGRSHUDWLQJHIIHFWLYHQHVVRIWKH+ROGLQJ &RPSDQ\LWVVXEVLGLDU\FRPSDQLHVDVVRFLDWHVDQGMRLQWO\FRQWUROOHGFRPSDQLHV¶LQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJ K :LWKUHVSHFWWRWKHRWKHUPDWWHUVWREHLQFOXGHGLQWKH$XGLWRU¶V5HSRUWLQDFFRUGDQFH5XOHRIWKH&RPSDQLHV $XGLWDQG$XGLWRUV 5XOHV LQRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXV L 7KHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVGLVFORVHWKHLPSDFWRISHQGLQJOLWLJDWLRQVRQWKHFRQVROLGDWHG¿QDQFLDOSRVLWLRQRIWKH *URXSLWVDVVRFLDWHVDQGMRLQWO\FRQWUROOHGHQWLWLHV±5HIHU1RWH1RWRWRWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV LL 7KH&RPSDQ\KDVPDGHSURYLVLRQLQWKHFRQVROLGDWHG,QG$6¿QDQFLDOVWDWHPHQWVDVUHTXLUHGXQGHUWKHDSSOLFDEOHODZRUDFFRXQWLQJ standards, for material foreseeable losses, if any, on long term contracts including derivatives contacts. iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company, subsidiary companies, associates companies and jointly controlled companies incorporated in India. For S Z DESHMUKH & CO. &KDUWHUHG$FFRXQWDQWV )LUP5HJLVWUDWLRQ1R: D. U. KADAM 3DUWQHU 0HPEHUVKLS1R Place: Mumbai 'DWH -XQH 86 ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED IND AS FINANCIAL STATEMENTS OF VIDEOCON INDUSTRIES LIMITED 5HIHUredWRLQSDUDJUDSK J XQGHUµ5HSRUWRQ2WKHU/HJDODQG5HJXODWRU\5HTXLUHPHQWV¶RIRXUUHSRUWRIHYHQGDWH Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) ,QFRQMXQFWLRQZLWKRXUDXGLWRIWKH&RQVROLGDWHG,QG$6)LQDQFLDO6WDWHPHQWVRIWKH&RPSDQ\DVRIDQGIRUWKH\HDUHQGHG0DUFKZHKDYH DXGLWHGWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJRIVIDEOCON INDUSTRIES LIMITED (hereinafter referred to as “Holding Company”), its subsidiary companies (together referred to as “the Group”), its associates and jointly controlled entities on that date. Management’s Responsibility for Internal Financial Controls The respective Board of Directors of the Holding Company, its subsidiary companies, associates and jointly controlled entities incorporated in India are UHVSRQVLEOHIRUHVWDEOLVKLQJDQGPDLQWDLQLQJLQWHUQDO¿QDQFLDOFRQWUROVEDVHGRQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULDHVWDEOLVKHGE\WKH &RPSDQ\FRQVLGHULQJWKHHVVHQWLDOFRPSRQHQWVRILQWHUQDOFRQWUROVWDWHGLQWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO 5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD ,&$, 7KHVHUHVSRQVLELOLWLHVLQFOXGHWKHGHVLJQLPSOHPHQWDWLRQDQGPDLQWHQDQFHRI DGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVWKDWZHUHRSHUDWLQJHIIHFWLYHO\IRUHQVXULQJWKHRUGHUO\DQGHI¿FLHQWFRQGXFWRILWVEXVLQHVVLQFOXGLQJDGKHUHQFHWR company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting UHFRUGVDQGWKHWLPHO\SUHSDUDWLRQRIUHOLDEOH¿QDQFLDOLQIRUPDWLRQDVUHTXLUHGXQGHUWKH&RPSDQLHV$FW Auditors’ Responsibility 2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJEDVHGRQRXUDXGLW:HFRQGXFWHGRXU DXGLWLQDFFRUGDQFHZLWKWKH*XLGDQFH1RWHRQ$XGLWRI,QWHUQDO)LQDQFLDO&RQWUROV2YHU)LQDQFLDO5HSRUWLQJ WKH³*XLGDQFH1RWH´ LVVXHGE\WKH,QVWLWXWH RI&KDUWHUHG$FFRXQWDQWVRI,QGLDDQGWKH6WDQGDUGVRQ$XGLWLQJSUHVFULEHGXQGHUVHFWLRQ RIWKH&RPSDQLHV$FWWRWKHH[WHQWDSSOLFDEOH WRDQDXGLWRILQWHUQDO¿QDQFLDOFRQWUROV7KRVH6WDQGDUGVDQGWKH*XLGDQFH1RWHUHTXLUHWKDWZHFRPSO\ZLWKHWKLFDOUHTXLUHPHQWVDQGSODQDQGSHUIRUP WKHDXGLWWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHUDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZDVHVWDEOLVKHGDQGPDLQWDLQHGDQG if such controls operated effectively in all material respects. 2XUDXGLWLQYROYHVSHUIRUPLQJSURFHGXUHVWRREWDLQDXGLWHYLGHQFHDERXWWKHDGHTXDF\RIWKHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ DQGWKHLURSHUDWLQJHIIHFWLYHQHVV2XUDXGLWRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGHGREWDLQLQJDQXQGHUVWDQGLQJRILQWHUQDO¿QDQFLDO FRQWUROVRYHU¿QDQFLDOUHSRUWLQJDVVHVVLQJWKHULVNWKDWDPDWHULDOZHDNQHVVH[LVWVDQGWHVWLQJDQGHYDOXDWLQJWKHGHVLJQDQGRSHUDWLQJHIIHFWLYHQHVVRI internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material PLVVWDWHPHQWRIWKH¿QDQFLDOVWDWHPHQWVZKHWKHUGXHWRIUDXGRUHUURU :HEHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGDQGWKHDXGLWHYLGHQFHREWDLQHGE\WKHRWKHUDXGLWRUVRIWKHVXEVLGLDU\FRPSDQLHVDVVRFLDWHVDQG MRLQWO\FRQWUROOHGHQWLWLHVLQWHUPVRIWKHLUUHSRUWVUHIHUUHGWRLQWKH2WKHU0DWWHUVSDUDJUDSKEHORZLVVXI¿FLHQWDQGDSSURSULDWHWRSURYLGHDEDVLVIRURXU DXGLWRSLQLRQRQWKH&RPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJ Meaning of Internal Financial Controls Over Financial Reporting $FRPSDQ\¶VLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKHUHOLDELOLW\RI¿QDQFLDO UHSRUWLQJDQGWKHSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVIRUH[WHUQDOSXUSRVHVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV$FRPSDQ\¶V LQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDW SHUWDLQWRWKHPDLQWHQDQFHRIUHFRUGVWKDWLQUHDVRQDEOH GHWDLODFFXUDWHO\DQGIDLUO\UHÀHFWWKHWUDQVDFWLRQVDQGGLVSRVLWLRQVRIWKHDVVHWVRIWKHFRPSDQ\ SURYLGHUHDVRQDEOHDVVXUDQFHWKDWWUDQVDFWLRQV DUHUHFRUGHGDVQHFHVVDU\WRSHUPLWSUHSDUDWLRQRI¿QDQFLDOVWDWHPHQWVLQDFFRUGDQFHZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVDQGWKDWUHFHLSWV DQGH[SHQGLWXUHVRIWKHFRPSDQ\DUHEHLQJPDGHRQO\LQDFFRUGDQFHZLWKDXWKRULVDWLRQVRIPDQDJHPHQWDQGGLUHFWRUVRIWKHFRPSDQ\ DQG SURYLGH reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have DPDWHULDOHIIHFWRQWKH¿QDQFLDOVWDWHPHQWV Inherent Limitations of Internal Financial Controls Over Financial Reporting %HFDXVHRIWKHLQKHUHQWOLPLWDWLRQVRILQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJLQFOXGLQJWKHSRVVLELOLW\RIFROOXVLRQRULPSURSHUPDQDJHPHQW override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal ¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJWRIXWXUHSHULRGVDUHVXEMHFWWRWKHULVNWKDWWKHLQWHUQDO¿QDQFLDOFRQWURORYHU¿QDQFLDOUHSRUWLQJPD\EHFRPH LQDGHTXDWHEHFDXVHRIFKDQJHVLQFRQGLWLRQVRUWKDWWKHGHJUHHRIFRPSOLDQFHZLWKWKHSROLFLHVRUSURFHGXUHVPD\GHWHULRUDWH Opinion In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors DVUHIHUUHGWRLQWKH2WKHU0DWWHUVSDUDJUDSKWKH+ROGLQJ&RPSDQ\LWVVXEVLGLDU\FRPSDQLHVDVVRFLDWHVDQGMRLQWO\FRQWUROOHGHQWLWLHVZKLFKDUH FRPSDQLHVLQFRUSRUDWHGLQ,QGLDKDYHLQDOOPDWHULDOUHVSHFWVDQDGHTXDWHLQWHUQDO¿QDQFLDOFRQWUROVV\VWHPRYHU¿QDQFLDOUHSRUWLQJDQGVXFKLQWHUQDO ¿QDQFLDOFRQWUROVRYHU¿QDQFLDOUHSRUWLQJZHUHRSHUDWLQJHIIHFWLYHO\DVDWst0DUFKEDVHGRQWKHLQWHUQDOFRQWURORYHU¿QDQFLDOUHSRUWLQJFULWHULD established by these entities considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls 2YHU)LQDQFLDO5HSRUWLQJLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD Other Matters 2XUDIRUHVDLGUHSRUWXQGHU6HFWLRQ L RIWKH$FWRQWKHDGHTXDF\DQGRSHUDWLQJHIIHFWLYHQHVVRIWKHLQWHUQDO¿QDQFLDOFRQWUROVRYHU¿QDQFLDO UHSRUWLQJLQVRIDUDVLWUHODWHVWR VXEVLGLDU\FRPSDQLHVMRLQWYHQWXUHDQGDVVRFLDWHVZKLFKDUHFRPSDQLHVLQFRUSRUDWHGLQ,QGLDLVEDVHGRQWKH corresponding reports of the auditors of such company. For S Z DESHMUKH & CO. &KDUWHUHG$FFRXQWDQWV )LUP5HJLVWUDWLRQ1R: D. U. KADAM 3DUWQHU 0HPEHUVKLS1R Place: Mumbai 'DWH -XQH 87 Annual Report 2017-18 Consolidated Balance Sheet as at March 31, 2018 (` in Million) As at As at As at Particulars Notes March 31, 2018 March 31, 2017 January 1, 2016 I. ASSETS 1) Non-current assets Property, Plant and Equipment 2 70,387.06 87,882.77 &DSLWDOZRUNLQSURJUHVV *RRGZLOO 2WKHU,QWDQJLEOHDVVHWV 3 78.38 Equity accounted investees $ Financial assets i) 2WKHULQYHVWPHQWV % ii) /RDQV 117,669.21 iii) 2WKHUV 6 1,097.71 2WKHUQRQFXUUHQWDVVHWV 7 13,030.91 2WKHUWD[DVVHWV 1HW 870.16 768.80 Total non-current assets 343,895.09 267,938.19 294,340.69 2) Current Assets Inventories 8 28,660.70 Financial Assets i) Investments 9 ii) Trade receivables 10 iii) Cash and cash equivalents 11a 1,987.71 13,378.69 iv) Bank balances other than (11a) above 11b iv) /RDQV 12 186,920.96 v) 2WKHUV 13 320.63 131.91 2WKHUFXUUHQWDVVHWV 382.72 866.27 'LVSRVDOJURXSDVVHWVKHOGIRUVDOH 9,163.20 9,321.37 Total current assets 153,123.64 260,542.12 313,251.83 TOTAL ASSETS 497,018.73 528,480.31 607,592.52 II. EQUITY AND LIABILITIES 1) Equity Equity share capital 2WKHUHTXLW\ 16 Total Equity (36,183.85) 28,049.86 86,902.90 2) Non controlling interest 1,066.13 3) Non current liabilities Financial liabilities i) %RUURZLQJV 17 1,696.33 Provisions 18 *UDQWIRU2]RQH3URMHFW Deferred tax liabilities (net) 19 Total non current liabilities 6,272.26 366,228.79 340,600.59 4) Current liabilities Financial liabilities i) %RUURZLQJV 20 27,183.31 ii) Trade payables 21 21,918.60 iii) 2WKHUV 22 8,261.82 82,278.91 112,112.17 2WKHUFXUUHQWOLDELOLWLHV 23 2,093.93 Provisions Total Current liabilities 526,365.46 133,135.53 179,838.71 TOTAL EQUITY AND LIABILITIES 497,018.73 528,480.31 607,592.52 6LJQL¿FDQW$FFRXQWLQJ3ROLFLHV 1 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKH¿QDQFLDOVWDWHPHQWV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 DIN 00217692 Place : Mumbai 'DWH -XQH 88 &RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVVIRUWKH\HDUHQGHG0DUFK (` in Million) For the year ended For 15 Months ended Particulars Notes March 31, 2018 March 31, 2017 I. Income 5HYHQXHIURPRSHUDWLRQV 2WKHULQFRPH 26 Total Income 50,930.74 135,918.59 II. Expenses Cost of materials consumed 27 3XUFKDVHRIVWRFNLQWUDGH 28 9,006.11 &KDQJHVLQLQYHQWRULHVRI¿QLVKHGJRRGVZRUNLQSURJUHVVDQGVWRFNLQWUDGH 29 212.10 Excise duty 3URGXFWLRQDQGH[SORUDWLRQH[SHQVHV2LODQG*DV 30 6,606.07 $FFHVVFKDUJHVOLFHQVHIHHVDQGQHWZRUNH[SHQVHV 31 (PSOR\HHEHQH¿WVH[SHQVHV 32 2,311.78 Finance costs 33 'HSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHV 2&3 Impairment of assets % E 2WKHU([SHQVHV 10,692.61 Total Expenses 114,231.79 200,774.29 /HVV ([FHSWLRQDOLWHPV 6,281.86 3UR¿WEHIRUHH[WUDRUGLQDU\LWHPVDQGWD[ (69,582.91) (64,855.70) Add: Extraordinary items 3UR¿W /RVV EHIRUHVKDUHRISUR¿WRIDVVRFLDWHVMRLQWYHQWXUHVDQGWD[ (69,582.91) (36,934.06) $GG 6KDUHRI3UR¿WRIHTXLW\DFFRXQWHGLQYHVWHHV (1,991.71) $GG 3UR¿WRQGLVSRVDOGLOXWLRQRIKROGLQJLQVXEVLGLDULHVDVVRFLDWHV 3UR¿W /RVV EHIRUHWD[ (71,300.52) (29,864.80) Tax expense: i) Current tax 0.29 3.39 ii) MAT credit entitlement (3.20) iii) Deferred tax iv) ([FHVV 6KRUWSURYLVLRQRILQFRPHWD[IRUHDUOLHU\HDUV 0.09 (0.30) Total tax expenses (5,763.33) (4,360.95) 3UR¿W /RVV IRUWKH\HDUIURP&RQWLQXLQJDQG'LVFRQWLQXHG2SHUDWLRQV (65,537.19) (25,503.85) 3UR¿W /RVV IURP&RQWLQXLQJ2SHUDWLRQV%HIRUH7D[ Tax Expense 3UR¿W /RVV IURP&RQWLQXLQJ2SHUDWLRQV$IWHU7D[ (65,537.19) (45,817.38) 3UR¿W /RVV IURP'LVFRQWLQXHG2SHUDWLRQV%HIRUH7D[ - Tax Expense - 3UR¿W /RVV IURP'LVFRQWLQXHG2SHUDWLRQV$IWHU7D[ - 20,313.53 1HW3UR¿W /RVV IURP&RQWLQXLQJDQG'LVFRQWLQXHG2SHUDWLRQV (65,537.19) (25,503.85) Other comprehensive income ,WHPVWKDWZLOOQRWEHUHFODVVL¿HGWRVWDWHPHQWRISUR¿WRUORVVLQVXEVHTXHQWSHULRG i) 5HPHDVXUHPHQWVRIWKHGH¿QHGEHQH¿WSODQV ii) (TXLW\LQVWUXPHQWVWKURXJKRWKHUFRPSUHKHQVLYHLQFRPHQHWFKDQJHLQIDLUYDOXH (3.72) iii) 'HEWLQVWUXPHQWVWKURXJKRWKHUFRPSUHKHQVLYHLQFRPHQHWFKDQJHLQIDLUYDOXH (66.12) 26.87 iv) Income tax on above (3.96) ,WHPVWKDWZLOOEHUHFODVVL¿HGWRVWDWHPHQWRISUR¿WRUORVVLQVXEVHTXHQWSHULRG i) ([FKDQJHGLIIHUHQFHVLQWUDQVODWLQJ¿QDQFLDOVWDWHPHQWVRIIRUHLJQRSHUDWLRQV 1,186.08 1,141.21 (5,358.91) 7RWDOFRPSUHKHQVLYHLQFRPH ORVV IRUWKH\HDUSHULRG (64,395.98) (30,862.76) 3UR¿W /RVV DWWULEXWDEOHWR 2ZQHUVRIWKH&RPSDQ\ 1RQ&RQWUROOLQJ,QWHUHVWV 998.33 917.71 2WKHU&RPSUHKHQVLYH,QFRPH /RVV DWWULEXWDEOHWR 2ZQHUVRIWKH&RPSDQ\ 1RQ&RQWUROOLQJ,QWHUHVWV 1.10 7RWDO&RPSUHKHQVLYH,QFRPH /RVV DWWULEXWDEOHWR 2ZQHUVRIWKH&RPSDQ\ 1RQ&RQWUROOLQJ,QWHUHVWV 998.73 918.81 Earnings per equity share Basic and diluted earnings per share 36 6LJQL¿FDQW$FFRXQWLQJ3ROLFLHV 1 7KHDFFRPSDQ\LQJQRWHVDUHDQLQWHJUDOSDUWRIWKH¿QDQFLDOVWDWHPHQWV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 DIN 00217692 Place : Mumbai 'DWH -XQH 89 Annual Report 2017-18 Consolidated Statement of Cash Flows for the year ended March 31, 2018 (` in Million) For the year ended For the year ended Particulars March 31, 2018 March 31, 2017 A. CASH FLOW FROM OPERATING ACTIVITIES 3UR¿W /RVV EHIRUHWD[ Adjustments for: Depreciation and amortisation Impairment of assets Finance costs 3URYLVLRQIRUZDUUDQW\DQGPDLQWHQDQFHH[SHQVHV Provision for gratuity (10.30) Provision for leave encashment Provision for abandonment and site restoration costs Provision for doubtful debts 20.86 Interest income ,QFRPH /RVVIURPLQYHVWPHQWVDQGVHFXULWLHVGLYLVLRQ/RVVRQLQYHVWPHQWV 1,796.61 (13.93) /RVVRQVDOHGLVFDUGRI¿[HGDVVHWV 906.32 0LQRULW\,QWHUHVWIRUWKH\HDUSHULRG (998.73) (918.81) Adjustment of grant Extraordinary items 2SHUDWLQJ3UR¿WEHIRUH:RUNLQJ&DSLWDO&KDQJHV (23,611.45) 10,331.59 Adjustments for: Inventories Trade receivables 13,691.38 6,017.30 2WKHU¿QDQFLDODQGQRQ¿QDQFLDODVVHWV (22,710.30) 23,301.71 Trade payables 2WKHU¿QDQFLDODQGQRQ¿QDQFLDOOLDELOLWLHV (1.91) Cash generated from Operations (23,851.79) 41,469.80 /HVV 7D[HVSDLG QHW (113.39) 1HW&DVK XVHGLQ IURP2SHUDWLQJ$FWLYLWLHV (A) (23,738.40) 41,368.55 B. CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVH 6DOHRI¿[HGDVVHWV ,QFOXGLQJFDSLWDOZRUNLQSURJUHVV Interest Income ,QFUHDVH 'HFUHDVHLQ¿[HGGHSRVLWVDQGRWKHUEDQNEDODQFHV 3XUFKDVH 6DOHRILQYHVWPHQWV 1HW 'HFUHDVHLQJRRGZLOORQFRQVROLGDWLRQ 0.03 ,QFRPH /RVV IURP,QYHVWPHQWVDQGVHFXULWLHVGLYLVLRQ/RVVRQLQYHVWPHQWV (1,796.61) 13.93 Net Cash from Investing Activities (B) 28,605.60 25,925.35 C. CASH FLOW FROM FINANCING ACTIVITIES (Decrease) in securities premium on account of disposal of subsidiaries (16.81) ,QFUHDVH 'HFUHDVH LQIRUHLJQFXUUHQF\WUDQVODWLRQUHVHUYHRQFRQVROLGDWLRQ 1,186.08 ,QFUHDVH 'HFUHDVH LQPLQRULW\LQWHUHVW ,QFUHDVH 'HFUHDVH LQQRQFXUUHQWERUURZLQJV (1.87) ,QFUHDVH 'HFUHDVH LQFXUUHQWERUURZLQJV Finance costs Payment of dividend (2.02) (1.20) Net Cash (used in) Financing Activities (C) (3,919.17) (78,684.88) Net Change in Cash and Cash Equivalents (A+B+C) 948.03 (11,390.98) &DVKDQG&DVK(TXLYDOHQWVDWEHJLQQLQJRIWKH\HDUSHULRG 1,987.71 13,378.69 &DVKDQG&DVK(TXLYDOHQWVDWHQGRIWKH\HDUSHULRG 2,935.74 1,987.71 Notes: The movement of borrowings as per Ind AS 7 is as follows: Non- Current Total Current 2SHQLQJERUURZLQJVDVRQ$SULO 27,183.31 3URFHHGV 5HSD\PHQWV GXULQJWKH\HDU 1RQFDVKDGMXVWPHQWV Closing borrowings as on March 31, 2018 1,764.27 500,911.68 502,675.95 ,QFOXGHVWUDQVIHUIURPQRQFXUUHQWERUURZLQJVWRFXUUHQWERUURZLQJV As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 DIN 00217692 Place : Mumbai 'DWH -XQH 90 STATEMENT OF CHANGES IN EQUITY (SOCIE) FOR THE YEAR ENDED MARCH 31, 2018 a) Equity share capital Particulars Note ` in Million %DODQFHDVDW-DQXDU\ Changes in equity share capital during the period Balance as at March 31, 2017 Changes in equity share capital during the year Balance as at March 31, 2018 b) Other equity (` in Million) Attributable to the owners of the Company Non Con- Total Particulars Equity Capital Capital Securi- %RQG General Legal Retained Exchange Debt Equity trolling compo- Reserve Redemp- ties Deben- Reserve Reserve earnings* differ- instru- invest- Interest nent of tion Re- Premium ture Re- ences in ments ments ¿QDQFLDO serve Account demption translating through through instru- Reserve ¿QDQFLDO OCI OCI ments statements of foreign operations Balance at January 1, 2016 24.31 5.68 997.59 48,893.80 1,618.38 16,801.48 0.32 15,187.91 - 39.25 (10.41) 250.32 83,808.63 3UR¿WIRUWKHSHULRG 917.71 2WKHUFRPSUHKHQVLYHLQFRPHIRU 8.99 26.87 1.10 the period Total comprehensive income ------(26,412.57) (5,370.06) 26.87 (25.81) 918.81 (30,862.76) for the period Decrease on account of disposal (16.81) (16.81) of subsidiaries Acquisition of stake of subsidiary (103.00) (103.00) Deemed equity contribution to promoters 7UDQVIHUUHGWRIURPUHWDLQHG earnings Capital Infused in joint venture Balance at March 31, 2017 24.31 5.68 997.59 48,876.99 1,218.97 16,801.48 0.32 (37,879.91) (5,370.06) 66.12 (36.22) 1,066.13 25,771.40 3UR¿WIRUWKH\HDU 998.33 2WKHUFRPSUHKHQVLYHLQFRPH 1,186.08 (66.12) (3.72) for the year Total comprehensive income ------(66,510.95) 1,186.08 (66.12) (3.72) 998.73 (64,395.98) for the year Deemed equity contribution to promoters 7UDQVIHUUHGWRIURPUHWDLQHG 3.86 (3.86) earnings Dilution in stake of subsidiary Adjustment on account of ad GLWLRQDOVWDNHDFTXLUHGIURP1RQ Controlling interest Balance at March 31, 2018 24.31 5.68 997.59 48,876.99 1,222.83 16,801.48 0.32 (103,233.72) (4,183.98) - (39.94) 564.86 (38,963.58) ,QFOXGHVIDLUYDOXDWLRQLPSDFWRI/DQGDQG%XLOGLQJ` 13,876.67 Million for March 2018, ` 0LOOLRQLQ0DUFKDQG`0LOOLRQLQ-DQXDU\6XFKDPRXQWVDUHQRWDYDLODEOHIRUGLVWULEXWLRQ as dividend. As per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 DIN 00217692 Place : Mumbai 'DWH -XQH 91 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 1 liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation 1.1 Corporate Information and judgments based on historical experience and other factors, 7KH &RQVROLGDWHG )LQDQFLDO 6WDWHPHQWV FRPSULVH ¿QDQFLDO including expectations of future events that are believed to be VWDWHPHQWVRI9LGHRFRQ,QGXVWULHV/LPLWHG µWKH+ROGLQJ&RPSDQ\¶ reasonable. DQGLWVVXEVLGLDULHV FROOHFWLYHO\UHIHUUHGWRDVµWKH*URXS¶ IRUWKH Judgements: year ended March 31, 2018. Determination of the estimated useful lives The principal activities of the Group, its joint ventures and associates consist of manufacturing and trading of consumer electronics and Information about judgements made in applying accounting policies home appliances products, extraction of crude oil and natural gas WKDWKDYHWKHPRVWVLJQL¿FDQWHIIHFWVRQWKHDPRXQWVUHFRJQLVHG and telecommunication services. Further details about the business LQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVLVLQFOXGHGLQWKHIROORZLQJ RSHUDWLRQV RI WKH *URXS DUH SURYLGHG LQ 1RWH ± 6HJPHQW notes: Information. Note 1.2.I – Useful life of property, plant and equipment and %DVLVRISUHSDUDWLRQDQG6LJQL¿FDQW$FFRXQWLQJ3ROLFLHV intangible assets A. Statement of compliance Assumptions and estimation uncertainities 7KHVH¿QDQFLDOVWDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK Note 1.2.W – recognition of deferred tax assets: availability of future WKH,QGLDQ$FFRXQWLQJ6WDQGDUGV KHUHLQDIWHUUHIHUUHGWRDVWKHµ,QG WD[DEOHSUR¿WDJDLQVWZKLFKWD[ORVVHVFDUULHGIRUZDUGFDQEHXVHG $6¶ DVQRWL¿HGE\0LQLVWU\RI&RUSRUDWH$IIDLUVSXUVXDQWWRVHFWLRQ RIWKH&RPSDQLHV$FWUHDGZLWK5XOHRIWKH&RPSDQLHV 1RWH 3 ± PHDVXUHPHQW RI GH¿QHG EHQH¿W REOLJDWLRQV NH\ actuarial assumptions; ,QGLDQ$FFRXQWLQJ6WDQGDUGV 5XOHVDQG&RPSDQLHV ,QGLDQ $FFRXQWLQJ6WDQGDUGV $PHQGPHQW5XOHVDQGRWKHUUHOHYDQW Notes 1.2.Q – recognition and measurement of provisions and provisions of the Act. contingencies: key assumptions about the likelihood and magnitude These Consolidated Financial Statements for the year ended March RIDQRXWÀRZRIUHVRXUFHV DUHWKH¿UVW¿QDQFLDOVWDWHPHQWSUHSDUHGXQGHU,QG$6 E. Measurement of fair values For all periods upto and including the period ended March 31, WKH *URXS SUHSDUHG LWV ¿QDQFLDO VWDWHPHQWV LQ DFFRUGDQFH The Group’s accounting policies and disclosures require the ZLWKWKHDFFRXQWLQJVWDQGDUGVQRWL¿HGXQGHUWKH6HFWLRQRIWKH PHDVXUHPHQW RI IDLU YDOXHV IRU ERWK ¿QDQFLDO DQG QRQ¿QDQFLDO &RPSDQLHV$FWUHDGWRJHWKHUZLWKUXOHRIWKH&RPSDQLHV instruments. $FFRXQWV 5XOHV KHUHLQDIWHUUHIHUUHGWRDVµ3UHYLRXV*$$3¶ 7KH *URXS KDV DQ HVWDEOLVKHG FRQWURO IUDPHZRUN ZLWK UHVSHFW WR used for its statutory reporting requirement in India immediately WKHPHDVXUHPHQWRIIDLUYDOXHV)DLUYDOXHLVWKHSULFHWKDWZRXOGEH before adopting Ind AS. The Consolidated Financial Statements for received to sell an asset or paid to transfer a liability in an orderly the period ended March 31, 2017 and the opening Balance Sheet WUDQVDFWLRQEHWZHHQPDUNHWSDUWLFLSDQWVDWWKHPHDVXUHPHQWGDWH DVDW-DQXDU\KDYHEHHQUHVWDWHGLQDFFRUGDQFHZLWK,QG UHJDUGOHVVRIZKHWKHUWKDWSULFHLVGLUHFWO\REVHUYDEOHRUHVWLPDWHG $6IRUFRPSDUDWLYHLQIRUPDWLRQ5HFRQFLOLDWLRQVDQGH[SODQDWLRQV using another valuation technique. The management regularly of the effect of the transition from Previous GAAP to Ind AS on the UHYLHZVVLJQL¿FDQWXQREVHUYDEOHLQSXWVDQGYDOXDWLRQDGMXVWPHQWV (TXLW\7RWDO&RPSUHKHQVLYH,QFRPHDQG&DVK)ORZVDUHSURYLGHG If third party information, such as broker quotes or pricing services, The Consolidated Financial Statements have been prepared on is used to measure fair values, then the management assesses the accrual and going concern basis. The accounting policies are evidence obtained from the third parties to support the conclusion applied consistently to all the periods presented in the Consolidated that such valuations meet the requirements of Ind AS, including the Financial Statements, including the preparation of the opening Ind OHYHOLQWKHIDLUYDOXHKLHUDUFK\LQZKLFKVXFKYDOXDWLRQVVKRXOGEH $6%DODQFH6KHHWDVDW-DQXDU\EHLQJWKHµGDWHRIWUDQVLWLRQ FODVVL¿HG to Ind AS’. Fair values are categorised into different levels in a fair value 7KH¿QDQFLDOVWDWHPHQWVRIWKH&RPSDQ\IRUWKH\HDUHQGHG0DUFK hierarchy based on the inputs used in the valuation techniques as ZHUHDSSURYHGIRULVVXHLQDFFRUGDQFHZLWKWKHUHVROXWLRQ IROORZV RI WKH %RDUG RI 'LUHFWRUV RQ -XQH 'HWDLOV RI DFFRXQWLQJ policies are included in Note 1. /HYHO TXRWHGSULFHV XQDGMXVWHG LQDFWLYHPDUNHWVIRULGHQWLFDO assets or liabilities. B. Functional and presentation currency /HYHO LQSXWVRWKHUWKDQTXRWHGSULFHVLQFOXGHGLQ/HYHOWKDW 7KHVH¿QDQFLDOVWDWHPHQWVDUHSUHVHQWHGLQ,QGLDQ5XSHHV ,15 are observable for the asset or liability, either directly (i.e. as prices) ZKLFK LV DOVR WKH HQWLW\¶V IXQFWLRQDO FXUUHQF\ $OO DPRXQWV KDYH or indirectly (i.e. derived from prices). EHHQURXQGHGRIIWRWKHQHDUHVWUXSHHLQ0LOOLRQVZLWKWZRGHFLPDOV XQOHVVRWKHUZLVHLQGLFDWHG /HYHO LQSXWV IRU WKH DVVHW RU OLDELOLW\ WKDW DUH QRW EDVHG RQ observable market data (unobservable inputs). C. Basis of measurement When measuring the fair value of an asset or a liability, the Group 7KH ¿QDQFLDO VWDWHPHQWV KDYH EHHQ SUHSDUHG RQ KLVWRULFDO FRVW uses observable market data as far as possible. If the inputs used EDVLVH[FHSWIRUWKHIROORZLQJDVVHWVDQGOLDELOLWLHVZKLFKKDYHEHHQ to measure the fair value of an asset or a liability fall into different measured at fair value: levels of the fair value hierarchy, then the fair value measurement &HUWDLQ¿QDQFLDODVVHWVDQGOLDELOLWLHVPHDVXUHGDWIDLUYDOXH UHIHU is categorised in its entirety in the same level of the fair value DFFRXQWLQJSROLF\UHJDUGLQJ¿QDQFLDOLQVWUXPHQWV KLHUDUFK\DVWKHORZHVWOHYHOLQSXWWKDWLVVLJQL¿FDQWWRWKHHQWLUH PHDVXUHPHQW7KH*URXSUHFRJQLVHVWUDQVIHUVEHWZHHQOHYHOVRI 1HWGH¿QHGEHQH¿W DVVHW OLDELOLW\±IDLUYDOXHRISODQDVVHWVOHVV the fair value hierarchy at the end of the reporting period during SUHVHQWYDOXHRIGH¿QHGEHQH¿WREOLJDWLRQV ZKLFKWKHFKDQJHKDVRFFXUUHG Historical cost is generally based on the fair value of the The entity has recognised certain assets at fair value and further consideration given in exchange for goods and services. information is included in the relevant notes. D. Key estimates and assumptions F. Basis of consolidation 7KH SUHSDUDWLRQ RI ¿QDQFLDO VWDWHPHQWV UHTXLUHV PDQDJHPHQW WR (i) Business Combinations make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, As part of its transition to Ind AS, the Group has elected to apply 92 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS WKHUHOHYDQW,QG$6YL],QG$6%XVLQHVVFRPELQDWLRQVWRRQO\ 7KH SUR¿W DQG RWKHU FRPSUHKHQVLYH LQFRPH DWWULEXWDEOH WR QRQ those business combinations that occurred on or after the transition FRQWUROOLQJ LQWHUHVWV RI VXEVLGLDULHV DUH VKRZQ VHSDUDWHO\ LQ WKH date i.e. April 1, 2016. &RQVROLGDWHG 6WDWHPHQW RI 3UR¿W DQG /RVV DQG &RQVROLGDWHG Statement of Changes in Equity. The Group has accounted merger schemes in a manner prescribed by the High Court orders. The book values of the assets, liabilities Upon loss of control, the Group derecognises the assets and and reserves of the Transferor Company have been recorded OLDELOLWLHV RI WKH VXEVLGLDU\ DQ\ QRQFRQWUROOLQJ LQWHUHVWV DQG WKH and the identity of the reserves has been maintained. The excess other components of equity related to the subsidiary. Any surplus or of book value of the net assets and reserves of the Transferor GH¿FLWDULVLQJRQWKHORVVRIFRQWUROLVUHFRJQLVHGLQWKH&RQVROLGDWHG Company taken over, over the face value of the shares issued 6WDWHPHQWRI3UR¿WDQG/RVV,IWKH*URXSUHWDLQVDQ\LQWHUHVWLQWKH E\ WKH WUDQVIHUHH &RPSDQ\ KDV EHHQ GHELWHG WR WKH *RRGZLOO DV previous subsidiary, then such interest is measured at fair value SHU WKH 6FKHPH $Q\ JRRGZLOO WKDW DULVHV LV WHVWHG DQQXDOO\ IRU at the date that control is lost and the differential is recognised impairment. LQ &RQVROLGDWHG 6WDWHPHQW RI 3UR¿W DQG /RVV 6XEVHTXHQWO\LW LV DFFRXQWHGIRUDVDQHTXLW\DFFRXQWHGLQYHVWHHGHSHQGLQJRQWKH Transaction costs are expensed as incurred, except to the extent OHYHORILQÀXHQFHUHWDLQHG related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of As far as possible, the Consolidated Financial Statements are SUHH[LVWLQJ UHODWLRQVKLSV ZLWK WKH DFTXLUHH 6XFK DPRXQWV DUH prepared using uniform accounting policies for like transactions UHFRJQLVHGLQWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVV and other events in similar circumstances and are presented in the VDPHPDQQHUDVWKH&RPSDQ\¶VVWDQGDORQH¿QDQFLDOVWDWHPHQWV Common control The companies considered in the preparation of the Consolidated Business combinations involving entities that are ultimately Financial Statements and the shareholding of the Group in these controlled by the same parties before and after the business &RPSDQLHVDVRI0DUFKLVDVIROORZV combination are considered as Common control entities. Common control transactions are accounted using pooling of interest Percentage of PHWKRG7KH¿QDQFLDOVWDWHPHQWVLQUHVSHFWRISULRUSHULRGVKDYH Ownership Interest been restated from the period that the Transferor Company became Country Subsidiaries of as at D VXEVLGLDU\ RI WKH 7UDQVIHUHH &RPSDQ\ ZKHUH WKH DVVHWV DQG liabilities of the transferee are recorded at their existing carrying Incorporation March March values, the identity of reserves of the transferee company is 31, 2018 31, 2017 preserved. &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH /LPLWHG XSWR0DUFK India (ii) Subsidiaries 0LGGOH(DVW$SSOLDQFHV//& Sultanate of 6XEVLGLDULHVDUHDOOHQWLWLHVRYHUZKLFKWKH*URXSKDVFRQWURO7KH 2PDQ *URXS FRQWUROV DQ HQWLW\ ZKHQ WKH *URXS LV H[SRVHG WR RU KDV 3LSDYDY(QHUJ\3ULYDWH/LPLWHG India ULJKWVWRYDULDEOHUHWXUQVIURPLWVLQYROYHPHQWZLWKWKHHQWLW\DQG 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG India KDVWKHDELOLW\WRDIIHFWWKRVHUHWXUQVWKURXJKLWVSRZHUWRGLUHFWWKH relevant activities of the entity. Subsidiaries are fully consolidated 9LGHRFRQ(OHFWURQLFV 6KHQ]KHQ /LPLWHG IURPWKHGDWHRQZKLFKFRQWUROLVWUDQVIHUUHGWRWKH*URXS7KH\DUH (Chinese Name Weiyoukang Electronic GHFRQVROLGDWHGIURPWKHGDWHZKHQWKHFRQWUROFHDVHV 6KHQ]KHQ &R/WG China 9LGHRFRQ*OREDO/LPLWHG %ULWLVK9LUJLQ 7KH *URXS FRPELQHV WKH ¿QDQFLDO VWDWHPHQWV RI WKH SDUHQW DQG Islands its subsidiaries line by line adding together like items of assets, liabilities, equity, income and expenses. Inter Group transactions, 929//LPLWHG )RUPHUO\9LGHRFRQ2LO EDODQFHV DQG XQUHDOLVHG JDLQV RQ WUDQVDFWLRQV EHWZHHQ *URXS 9HQWXUHV/LPLWHG India companies are eliminated. Unrealised losses are also eliminated 9LGHRFRQ+\GURFDUERQ+ROGLQJV/LPLWHG unless the transaction provides evidence of an impairment of the (1) Cayman Islands transferred asset. Accounting policies of subsidiaries have been 9LGHRFRQ-3'$/LPLWHG(2) Cayman Islands FKDQJHG ZKHUHYHU QHFHVVDU\ WR HQVXUH FRQVLVWHQF\ ZLWK WKH 9LGHRFRQ,QGRQHVLD1XQXNDQ,QF(2) Cayman Islands policies adopted by the Group. 9LGHRFRQ(QHUJ\%UD]LO/LPLWHG(2) %ULWLVK9LUJLQ The excess of cost to the Group of its investment in subsidiaries, Islands on the acquisition dates over and above the Group’s share of equity 9LGHRFRQ$XVWUDOLD:$3/LPLWHG(2) Cayman Islands LQ WKH VXEVLGLDULHV LV UHFRJQLVHG DV µ*RRGZLOO RQ &RQVROLGDWLRQ¶ (2) Mauritius being an asset in the Consolidated Financial Statement. 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E 5HYHQXHIURPVDOHRIHOHFWULFDOHQHUJ\LVDFFRXQWHGIRURQWKHEDVLV (iv) Leave Encashment RIELOOLQJDVSHUWKHSURYLVLRQVRI3RZHU3XUFKDVH$JUHHPHQW /LDELOLW\ LQ UHVSHFW RI OHDYH HQFDVKPHQW LV GHWHUPLQHG XVLQJ WKH F ,QVXUDQFH'XW\'UDZEDFNDQGRWKHUFODLPVDUHDFFRXQWHGIRUDV SURMHFWHG XQLW FUHGLW PHWKRG ZLWK DFWXDULDO YDOXDWLRQV DV RQ WKH DQGZKHQDGPLWWHGE\WKHDSSURSULDWHDXWKRULWLHV %DODQFH6KHHWGDWHDQGJDLQVORVVHVDUHUHFRJQL]HGLPPHGLDWHO\ LQ WKH &RQVROLGDWHG 6WDWHPHQW RI 3UR¿W DQG /RVV 7KH *URXS SUHVHQWVWKHDERYHOLDELOLW\ DVVHW DVFXUUHQWLQWKHEDODQFHVKHHW 96 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Q. 3URYLVLRQV RWKHUWKDQIRUHPSOR\HHEHQH¿WV studies, petroleum exploration license fees and general and administration costs directly attributable to exploration and 3URYLVLRQVDUHUHFRJQL]HGZKHQWKH*URXSKDVDSUHVHQWREOLJDWLRQ evaluation activities are expensed off. The costs incurred on DVDUHVXOWRIDSDVWHYHQW LWLVSUREDEOHWKDWDQRXWÀRZRIUHVRXUFHV acquisition of interest in oil and gas blocks and on exploration and HPERG\LQJHFRQRPLFEHQH¿WVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQ HYDOXDWLRQRWKHUWKDQWKRVHZKLFKDUHH[SHQVHGRIIDUHDFFRXQWHG DQGZKHQDUHOLDEOHHVWLPDWHRIWKHDPRXQWRIWKHREOLJDWLRQFDQ for as Intangible Assets Under Development. All development be made. Provisions are measured at the best estimate of the FRVWV LQFXUUHG LQ UHVSHFW RI SURYHG UHVHUYHV DUH DOVR FDSLWDOL]HG expenditure required to settle the present obligation at the Balance XQGHU,QWDQJLEOH$VVHWV8QGHU'HYHORSPHQW2QFHDZHOOLVUHDG\ Sheet date. The expenses relating to a provision is presented in the to commence commercial production, the costs accumulated in 6WDWHPHQWRI3UR¿WDQG/RVVQHWRIDQ\UHLPEXUVHPHQW ,QWDQJLEOH$VVHWV8QGHU'HYHORSPHQWDUHFODVVL¿HGDV,QWDQJLEOH Warranties Assets corresponding to prove developed oil and gas reserves. 7KHH[SORUDWLRQDQGHYDOXDWLRQH[SHQGLWXUHZKLFKGRHVQRWUHVXOW 3URYLVLRQIRUWKHHVWLPDWHGOLDELOLW\LQUHVSHFWRIZDUUDQW\RQVDOH in discovery of proved oil and gas reserves and all cost pertaining of consumer electronics and home appliances products is made in WRSURGXFWLRQDUHFKDUJHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVV WKH\HDULQZKLFKWKHUHYHQXHVDUHUHFRJQLVHGEDVHGRQWHFKQLFDO evaluation and past experience. Warranty provision is accounted The Company used technical estimation of reserves as per the DV FXUUHQW DQG QRQFXUUHQW SURYLVLRQ 1RQFXUUHQW SURYLVLRQ LV 3HWUROHXP 5HVRXUFHV 0DQDJHPHQW 6\VWHP JXLGHOLQHV DQG GLVFRXQWHGWRLWVSUHVHQWYDOXHDQGWKHVXEVHTXHQWXQZLQGLQJHIIHFW standard geological and reservoir engineering methods. The LVSDVVHGWKURXJK3UR¿WDQG/RVVDFFRXQWXQGHU)LQDQFH&RVW UHVHUYHUHYLHZDQGHYDOXDWLRQLVFDUULHGRXWDQQXDOO\ 5 Contingent liabilities and Contingent assets $VVHWVDQGOLDELOLWLHVDVZHOODVLQFRPHDQGH[SHQGLWXUHUHODWLQJWR ,QFRUSRUDWHG-RLQW9HQWXUHVZKLFKDUHLQWKHQDWXUHRIMRLQWYHQWXUH &RQWLQJHQWOLDELOLWLHVDUHSRVVLEOHREOLJDWLRQVZKRVHH[LVWHQFHZLOO DUHDFFRXQWHGRQWKHHTXLW\PHWKRGLQDFFRUGDQFHZLWK,QG$6 RQO\EHFRQ¿UPHGE\IXWXUHHYHQWVQRWZKROO\ZLWKLQWKHFRQWURORI ,QYHVWPHQWVLQ$VVRFLDWHVDQG-RLQW9HQWXUHV WKH*URXSRUSUHVHQWREOLJDWLRQVZKHUHLWLVQRWSUREDEOHWKDWDQ RXWÀRZRIUHVRXUFHVZLOOEHUHTXLUHGRUWKHDPRXQWRIWKHREOLJDWLRQ Pre-acquisition costs: FDQQRWEHPHDVXUHGZLWKVXI¿FLHQWUHOLDELOLW\&RQWLQJHQWOLDELOLWLHV Expenditure incurred before obtaining the right(s) to explore, DUH QRW UHFRJQL]HG LQ WKH ¿QDQFLDO VWDWHPHQWV EXW DUH GLVFORVHG GHYHORS DQG SURGXFH RLO DQG JDV DUH H[SHQVHG DV DQG ZKHQ XQOHVV WKH SRVVLELOLW\ RI DQ RXWÀRZ RI HFRQRPLF UHVRXUFHV LV incurred. considered remote. Exploration stage: Disputed demands in respect of custom duty, income tax, sales tax and others are disclosed as contingent liabilities. Payment in Acquisition cost relating to projects under exploration are initially UHVSHFWRIVXFKGHPDQGVLIDQ\LVVKRZQDVDQDGYDQFHWLOOWKH accounted as “Intangible assets under development”. The expenses ¿QDORXWFRPHRIWKHPDWWHU RQRLODQGJDVDVVHWVWKDWLVFODVVL¿HGDVLQWDQJLEOHLQFOXGH &RQWLQJHQWDVVHWVDUHQRWUHFRJQLVHGLQWKH¿QDQFLDOVWDWHPHQWV DFTXLUHGULJKWVWRH[SORUH S. Leases H[SORUDWRU\GULOOLQJFRVWV /HDVHVDUHFODVVL¿HGDV¿QDQFHOHDVHVZKHQHYHUWKHWHUPVRIWKH Cost of Survey and prospecting activities conducted in the search OHDVHWUDQVIHUVXEVWDQWLDOO\DOOWKHULVNVDQGUHZDUGVRIRZQHUVKLS RIRLODQGJDVDUHH[SHQVHGDVH[SORUDWLRQFRVWLQWKH\HDULQZKLFK WRWKHOHVVHH$OORWKHUOHDVHVDUHFODVVL¿HGDVRSHUDWLQJOHDVHV these are incurred If the project is not viable based upon technical ,QGHWHUPLQLQJZKHWKHUDQDUUDQJHPHQWLVRUFRQWDLQVDOHDVHLV feasibility and commercial viability study, then all costs relating to based on the substance of the arrangement at the inception of the ([SORUDWRU\:HOOVLVH[SHQVHGLQWKH\HDUZKHQGHWHUPLQHGWREH OHDVH7KHDUUDQJHPHQWLVRUFRQWDLQVDOHDVHGDWHLIIXO¿OOPHQW dry. If the project is proved to be viable, then all costs relating to RIWKHDUUDQJHPHQWLVGHSHQGHQWRQWKHXVHRIDVSHFL¿FDVVHWRU drilling of Exploratory Wells shall be continued to be presented as assets and the arrangement conveys a right to use the asset, even “Intangible Assets under Development”. LIWKDWULJKWLVQRWH[SOLFLWO\VSHFL¿HGLQWKHDUUDQJHPHQW Development stage: /HDVHG$VVHWV Acquisition cost relating to projects under development stage are Assets held by the Group under leases that transfer to the Group SUHVHQWHGDV³&DSLWDOZRUNLQSURJUHVV´ VXEVWDQWLDOO\DOORIWKHULVNVDQGUHZDUGVRIRZQHUVKLSDUHFODVVL¿HG DV¿QDQFHOHDVHV7KHOHDVHGDVVHWVDUHPHDVXUHGLQLWLDOO\DWDQ &XUUHQWO\ DOO WKH ZHOOV DUH XQGHU H[SORUDWLRQ DQG GHYHORSPHQW stage. DPRXQWHTXDOWRWKHORZHURIWKHLUIDLUYDOXHDQGWKHSUHVHQWYDOXH of the minimum lease payments. The corresponding liability to U. Abandonment Costs: the lessor is included in the Balance Sheet. Subsequent to initial UHFRJQLWLRQ WKH DVVHWV DUH DFFRXQWHG IRU LQ DFFRUGDQFH ZLWK WKH Abandonment Costs are provided at the present value of expected accounting policy applicable to that asset. FRVWV WR VHWWOH WKH REOLJDWLRQ XVLQJ HVWLPDWHG FDVK ÀRZV DQG DUH UHFRJQLVHGDVSDUWRIWKHFRVWRISDUWLFXODUDVVHW7KHFDVKÀRZV $VVHWVKHOGXQGHURWKHUOHDVHVDUHFODVVL¿HGDVRSHUDWLQJOHDVHV DUH GLVFRXQWHG DW D FXUUHQW SUHWD[ UDWH WKDW UHÀHFWV WKH ULVNV and are not recognised in the Consolidated Ind AS Financial VSHFL¿F WR WKH GHFRPPLVVLRQLQJ OLDELOLW\ 7KH XQZLQGLQJ RI WKH Statements. discount is expensed as incurred and recognised in the statement /HDVHSD\PHQWV RI SUR¿W DQG ORVV DV D ¿QDQFH FRVW 7KH HVWLPDWHG IXWXUH FRVWV RI GHFRPPLVVLRQLQJ DUH UHYLHZHG DQQXDOO\ DQG DGMXVWHG DV Payments made under operating leases are recognised in the appropriate. Changes in the estimated future costs or in the &RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVVRQDVWUDLJKWOLQHEDVLV discount rate applied are added to or deducted from the cost of the over the term of the lease unless such payments are structured asset. VROHO\ WR LQFUHDVH LQ OLQH ZLWK H[SHFWHG JHQHUDO LQÀDWLRQ WR Government Grant FRPSHQVDWH IRU WKH OHVVRU¶V H[SHFWHG LQÀDWLRQDU\ FRVW LQFUHDVH 9 VXFKLQFUHDVHVDUHUHFRJQLVHGLQWKH\HDUVLQZKLFKVXFKEHQH¿WV *UDQWVDUHUHFRJQLVHGZKHQWKHUHLVUHDVRQDEOHDVVXUDQFHWKDWWKH accrue. JUDQWZLOOEHUHFHLYHGDQGFRQGLWLRQVDWWDFKHGWRWKHPDUHFRPSOLHG T. Exploration, Development Costs and Producing Properties: ZLWK*UDQWVUHODWHGWRGHSUHFLDEOHDVVHWVDUHWUHDWHGDVGHIHUUHG LQFRPHZKLFKLVUHFRJQLVHGLQWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿W The Company has adopted Successful Efforts Method (SEM) of DQG /RVV RYHU WKH SHULRG RI XVHIXO OLIH RI WKH DVVHWV DQG LQ WKH DFFRXQWLQJIRULWV2LODQG*DVDFWLYLWLHV7KHSROLF\RIUHFRJQLWLRQ SURSRUWLRQVLQZKLFKGHSUHFLDWLRQRQUHODWHGDVVHWVLVFKDUJHG RIH[SORUDWLRQDQGHYDOXDWLRQH[SHQGLWXUHLVFRQVLGHUHGLQOLQHZLWK the principle of SEM. Seismic costs, geological and geophysical 97 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS W. Income tax attributable to acquisition or construction of a qualifying asset ZKLFKQHFHVVDULO\WDNHDVXEVWDQWLDOSHULRGRIWLPHWRJHWUHDG\IRU Income tax comprises current and deferred tax. It is recognised their intended use or sale are capitalised as part of the cost of that LQ&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVVH[FHSWWRWKHH[WHQW asset until such time as the assets are substantially ready for their that it relates to an item recognised directly in equity or in other LQWHQGHGXVHRUVDOH2WKHUERUURZLQJFRVWVDUHUHFRJQLVHGDVDQ comprehensive income. H[SHQVHLQWKHSHULRGLQZKLFKWKH\DUHLQFXUUHG (i) Current tax Y. 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Current income tax for current and prior periods is ¿QDQFLDO LQIRUPDWLRQ LV DYDLODEOH 6XFK GHFLVLRQ LV WDNHQ E\ FKLHI recognised at the amount expected to be paid to or recovered from RSHUDWLQJ GHFLVLRQ PDNHU &2'0 2SHUDWLQJ VHJPHQWV DUH WKH WD[ DXWKRULWLHV XVLQJ WD[ UDWHV DQG WD[ ODZV WKDW KDYH EHHQ UHSRUWHGLQDPDQQHUFRQVLVWHQWZLWKWKHLQWHUQDOUHSRUWLQJSURYLGHG enacted or substantively enacted at the reporting date. WRWKH&2'0 Current tax assets and liabilities are offset only if, the Group: (ii) Business segment a) has a legally enforceable right to set off the recognised amounts; The Group’s operating businesses are organised and managed and separately according to the nature of products and services SURYLGHG ZLWK HDFK VHJPHQW UHSUHVHQWLQJ D VWUDWHJLF EXVLQHVV b) intends either to settle on a net basis, or to realise the asset and unit that offers different products or services and serves different settle the liability simultaneously. PDUNHWV $FFRUGLQJO\ WKH *URXS KDV LGHQWL¿HG µ&RQVXPHU (ii) Deferred tax HOHFWURQLFV DQG KRPH DSSOLDQFHV¶ µ&UXGH RLO DQG QDWXUDO JDV¶ DQG µ7HOHFRPPXQLFDWLRQV¶ VHJPHQWV DV WKH SULPDU\ UHSRUWDEOH Deferred tax is recognised in respect of temporary differences segments. DULVLQJ EHWZHHQ WKH FDUU\LQJ DPRXQWV RI DVVHWV DQG OLDELOLWLHV IRU ¿QDQFLDO UHSRUWLQJ SXUSRVHV DQG WKH DPRXQWV XVHG IRU WD[DWLRQ (iii) Geographical segment purposes. 7KH*URXSKDVHQJDJHGLQLWVEXVLQHVVSULPDULO\ZLWKLQ,QGLDDQG Deferred tax is not recognised for: outside India. WHPSRUDU\ GLIIHUHQFHV RQ WKH LQLWLDO UHFRJQLWLRQ RI DVVHWV RU (iv) Segment information liabilities in a transaction that is not a business combination and ,QWHUVHJPHQWWUDQVIHUV 7KH*URXSJHQHUDOO\DFFRXQWVIRULQWHU WKDWDIIHFWVQHLWKHUDFFRXQWLQJQRUWD[DEOHSUR¿WRUORVV DQG segment sales and transfers at cost plus appropriate margins. 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The closing rate. PHDVXUHPHQW RI GHIHUUHG WD[ UHÀHFWV WKH WD[ FRQVHTXHQFHV WKDW AA. 3UHPLXQRQ5HGHPSWLRQRI%RQGV'HEHQWXUHV ZRXOGIROORZIURPWKHPDQQHULQZKLFKWKH*URXSH[SHFWVDWWKH reporting date, to recover or settle the carrying amount of its assets 3UHPLXP RQ 5HGHPSWLRQ RI %RQGV'HEHQWXUHV DUH ZULWWHQ RII WR and liabilities. Securities Premium Account. Deferred tax assets and liabilities are offset if there is a legally AB. Share Issue Expenses enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same 6KDUH LVVXH H[SHQVHV DUH ZULWWHQ RII WR 6HFXULWLHV 3UHPLXP taxable entity. Account. X. Borrowing costs AC. Excise and Custom Duty %RUURZLQJFRVWVDUHLQWHUHVWDQGRWKHUFRVWV LQFOXGLQJH[FKDQJH ([FLVH'XW\LQUHVSHFWRI¿QLVKHGJRRGVO\LQJLQWKHIDFWRU\SUHPLVHV GLIIHUHQFHVUHODWLQJWRIRUHLJQFXUUHQF\ERUURZLQJVWRWKHH[WHQWWKDW DQG&XVWRP'XW\RQJRRGVO\LQJLQFXVWRPERQGHGZDUHKRXVHDUH they are regarded as an adjustment to interest costs) incurred in provided for and included in the valuation of inventory. FRQQHFWLRQ ZLWK WKH ERUURZLQJ RI IXQGV %RUURZLQJ FRVWV GLUHFWO\ 98 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS AD. &(19$79DOXH$GGHG7D[ The amHQGPHQWZLOOFRPHLQWRIRUFHIURP$SULO7KH*URXS KDVHYDOXDWHGWKHHIIHFWRIWKLVRQWKH¿QDQFLDOVWDWHPHQWVDQGWKH &(19$79DOXH$GGHG7D[EHQH¿WLVDFFRXQWHGIRUE\UHGXFLQJWKH impact is not material. SXUFKDVHFRVWRIWKHPDWHULDOV¿[HGDVVHWVVHUYLFHV ,QG$6 5HYHQXH IURP &RQWUDFW ZLWK &XVWRPHUV 2Q 0DUFK AE. Prior Period Items 0LQLVWU\RI&RUSRUDWH$IIDLUV ³0&$´ KDVQRWL¿HGWKH,QG Prior period items are included in the respective heads of accounts $65HYHQXHIURP&RQWUDFWZLWK&XVWRPHUV7KHFRUHSULQFLSOH DQGPDWHULDOLWHPVDUHGLVFORVHGE\ZD\RI1RWHVWR&RQVROLGDWHG RIWKHQHZVWDQGDUGLVWKDWDQHQWLW\VKRXOGUHFRJQLVHUHYHQXHWR Financial Statements. depict the transfer of promised goods or services to customers in an DPRXQWWKDWUHÀHFWVWKHFRQVLGHUDWLRQWRZKLFKWKHHQWLW\H[SHFWVWR AF. Earnings per share EHHQWLWOHGLQH[FKDQJHIRUWKRVHJRRGVRUVHUYLFHV)XUWKHUWKHQHZ standard requires enhanced disclosures about the nature, amount, The basic Earnings Per Share (“EPS”) is computed by dividing WLPLQJDQGXQFHUWDLQW\RIUHYHQXHDQGFDVKÀRZVDULVLQJIURPWKH WKHQHWSUR¿W ORVV DIWHUWD[IRUWKH\HDUDWWULEXWDEOHWRWKHHTXLW\ HQWLW\¶VFRQWUDFWVZLWKFXVWRPHUV VKDUHKROGHUV E\ WKH ZHLJKWHG DYHUDJH QXPEHU RI HTXLW\ VKDUHV outstanding during the year. The Group has no potentially dilutive 7KHVWDQGDUGSHUPLWVWZRSRVVLEOHPHWKRGVRIWUDQVLWLRQ equity shares. 5HWURVSHFWLYHDSSURDFK8QGHUWKLVDSSURDFKWKHVWDQGDUGZLOO AG. Cash and cash equivalents be applied retrospectively to each prior reporting period presented LQ DFFRUGDQFH ZLWK ,QG $6 $FFRXQWLQJ 3ROLFLHV &KDQJHV LQ Cash and cash equivalents in the balance sheet comprise cash on Accounting Estimates and Errors KDQGXQUHVWULFWHGEDQNEDODQFHVDQGVKRUWWHUPGHSRVLWVZLWKDQ RULJLQDOPDWXULW\RIWKUHHPRQWKVRUOHVVZKLFKDUHVXEMHFWWRDQ 5HWURVSHFWLYHO\ ZLWK FXPXODWLYH HIIHFW RI LQLWLDOO\ DSSO\LQJ WKH LQVLJQL¿FDQWULVNRIFKDQJHVLQYDOXH standard recognised at the date of initial application (Cumulative FDWFKXSDSSURDFK AH. &XUUHQWDQGQRQFXUUHQWFODVVL¿FDWLRQ 7KHHIIHFWLYHGDWHIRUDGRSWLRQRI,QG$6LV¿QDQFLDOSHULRGV The Schedule III to the Act requires assets and liabilities to be beginning on or after April 1, 2018. FODVVL¿HGDVHLWKHUFXUUHQWRUQRQFXUUHQW 7KH *URXS ZLOO DGRSW WKH VWDQGDUG RQ $SULO E\ XVLQJ $QDVVHWLVFODVVL¿HGDVFXUUHQWZKHQLWVDWLV¿HVDQ\RIWKHIROORZLQJ WKH FXPXODWLYH FDWFKXS WUDQVLWLRQ PHWKRG DQG DFFRUGLQJO\ criteria: FRPSDUDWLYHVIRUWKH\HDUHQGLQJRUHQGHG0DUFKZLOOQRW be retrospectively adjusted. (a) it is expected to be realised in, or is intended for sale or consumption in, the entity’s normal operating cycle; Explanation of transition to Ind AS: (b) it is held primarily for the purpose of being traded; Ind AS 101 requires an entity to reconcile equity and total comprehensive LQFRPH IRU SULRU SHULRGV 7KH IROORZLQJ WDEOH UHSUHVHQWV WKH HTXLW\ F LWLVH[SHFWHGWREHUHDOLVHGZLWKLQWZHOYHPRQWKVDIWHUWKH%DODQFH reconciliation from previous GAAP to Ind AS: Sheet date; or $VVWDWHGLQ1RWHWKHVH¿QDQFLDOVWDWHPHQWVIRUWKH\HDUHQGHG0DUFK (d) it is cash or a cash equivalent unless it is restricted from being DUH WKH ¿UVW ¿QDQFLDO VWDWHPHQW WKH &RPSDQ\ KDV SUHSDUHG H[FKDQJHG RU XVHG WR VHWWOH D OLDELOLW\ IRU DW OHDVW WZHOYH PRQWKV LQ DFFRUGDQFH ZLWK ,QG $6 ,Q SUHSDULQJ WKHVH ¿QDQFLDO VWDWHPHQWV after the Balance Sheet date. WKH &RPSDQ\¶V RSHQLQJ EDODQFH VKHHW ZDV SUHSDUHG DV DW -DQXDU\ 2016, the Company’s date of transition to Ind AS. This note explains the $OORWKHUDVVHWVDUHFODVVL¿HGDVQRQFXUUHQW principal adjustments made by the Company in restating its Indian GAAP $ OLDELOLW\ LV FODVVL¿HG DV FXUUHQW ZKHQ LW VDWLV¿HV DQ\ RI WKH IROORZLQJ ¿QDQFLDOVWDWHPHQWVLQFOXGLQJWKHEDODQFHVKHHWDVDW-DQXDU\ criteria: DQGWKH¿QDQFLDOVWDWHPHQWVDVDWDQGIRUWKH\HDUHQGHG0DUFK (a) it is expected to be settled in, the entity’s normal operating cycle; Optional exemptions availed and mandatory exceptions (b) it is held primarily for the purpose of being traded; ,QSUHSDULQJWKH¿QDQFLDOVWDWHPHQWVWKH&RPSDQ\KDVDSSOLHGWKHEHORZ mentioned optional exemptions and mandatory exceptions. F LWLVGXHWREHVHWWOHGZLWKLQWZHOYHPRQWKVDIWHUWKH%DODQFH6KHHW date; or A) Optional exemptions availed (d) the Group does not have an unconditional right to defer settlement 6LWH5HVWRUDWLRQ&RVW$VVHWUHWLUHPHQWREOLJDWLRQ RI WKH OLDELOLW\ IRU DW OHDVW WZHOYH PRQWKV DIWHU WKH %DODQFH 6KHHW The Company has used the exemption in Paragraph D8 A (b) of date. Ind AS 101 and has measured decommissioning, restoration and similar liabilities as at the date of transition to Ind AS in accordance $OORWKHUOLDELOLWLHVDUHFODVVL¿HGDVQRQFXUUHQW ZLWK ,QG $6 DQG UHFRJQLVH GLUHFWO\ LQ UHWDLQHG HDUQLQJV DQ\ Operating cycle GLIIHUHQFHEHWZHHQWKDWDPRXQWDQGWKHFDUU\LQJDPRXQWRIWKRVH liabilities at the date of transition to Ind AS determined under IGAAP. 2SHUDWLQJ F\FOH LV WKH WLPH EHWZHHQ WKH DFTXLVLWLRQ RI DVVHWV IRU processing and their realisation in cash or cash equivalents. Based B) Mandatory Exceptions RQ WKH QDWXUH RI VHUYLFHV DQG WKH WLPH EHWZHHQ WKH DFTXLVLWLRQ 1) Estimates of assets for processing and their realisation in cash and cash equivalents, the Group has ascertained its operating cycle as 12 2QDVVHVVPHQWRIWKHHVWLPDWHVPDGHXQGHUWKH3UHYLRXV*$$3 PRQWKVIRUWKHSXUSRVHRIFXUUHQWDQGQRQFXUUHQWFODVVL¿FDWLRQRI ¿QDQFLDO VWDWHPHQWV WKH &RPSDQ\ KDV FRQFOXGHG WKDW WKHUH assets and liabilities. is no necessity to revise the estimates under Ind AS, as there is QR REMHFWLYH HYLGHQFH RI DQ HUURU LQ WKRVH HVWLPDWHV +RZHYHU AI. Recent accounting pronouncements HVWLPDWHVWKDWZHUHUHTXLUHGXQGHU,QG$6EXWQRWUHTXLUHGXQGHU Appendix B to Ind AS 21, Foreign currency transactions and Previous GAAP are made by the Company for the relevant reporting DGYDQFHFRQVLGHUDWLRQ 2Q0DUFK0LQLVWU\RI&RUSRUDWH GDWHVUHÀHFWLQJFRQGLWLRQVH[LVWLQJDVDWWKDWGDWH $IIDLUV ³0&$´ KDV QRWL¿HG WKH &RPSDQLHV ,QGLDQ $FFRXQWLQJ &ODVVL¿FDWLRQDQGPHDVXUHPHQWRI¿QDQFLDODVVHWV 6WDQGDUGV $PHQGPHQW5XOHVFRQWDLQLQJ$SSHQGL[%WR,QG AS 21, Foreign currency transactions and advance consideration As permited under Ind AS 101, Company has determined the ZKLFK FODUL¿HV WKH GDWH RI WKH WUDQVDFWLRQ IRU WKH SXUSRVH RI FODVVL¿FDWLRQRI¿QDQFLDODVVHWVEDVHGRQIDFWVDQGFLUFXPVWDQFHV determining the exchange rate to use on initial recognition of the WKDW H[LVW RQ WKH GDWH RI WUDQVLWLRQ ,Q OLQH ZLWK ,QG $6 UHODWHGDVVHWH[SHQVHRULQFRPHZKHQDQHQWLW\KDVUHFHLYHGRU PHDVXUHPHQWRI¿QDQFLDODVVHWVDFFRXQWHGDWDPRUWLVHGFRVWKDV paid advance consideration in a foreign currency. been done UHWURVSHFWLYHO\H[FHSWZKHUHWKHVDPHLVLPSUDFWLFDEOH 99 Annual Report 2017-18 Reconciliation of Consolidated statement of Equity as ReconciliatLRQRIVWDWHPHQWRIFDVKÀRZV previously reported under IGAAP and Ind AS The transition from previous GAAP to Ind AS has not had a material (` in Million) LPSDFWRQWKHVWDWHPHQWRIFDVKÀRZV Particulars Note As at As at 1) Property, Plant and Equipment No. March 31, January 2QWKHGDWHRIWUDQVLWLRQWKHFRPSDQ\KDVFKRVHQWRUHÀHFWIDLUYDOXH 2017 1, 2016 as the deemed cost of Property, Plant and Equipment. Total Equity as per 58,951.73 80,900.27 previous GAAP 2) Accounting for transaction costs on borrowings as per effective interest method Amortised cost measurement 2 RIERUURZLQJV 8QGHU SUHYLRXV *$$3GLUHFWO\ DWWULEXWDEOH WUDQVDFWLRQ FRVWV ZHUH Equity component of FCCB FKDUJHGWRWKH6WDWHPHQWRI3UR¿WDQG/RVVRUFDSLWDOLVHGDVSDUW recognised separately of property, plant and equipment in the year of disbursement of Fair valuation of investments 3 76.92 the loan. As per the requirements of Ind AS, the Company has Fair valuation of Property, 1 PHDVXUHG WKH ERUURZLQJV DW DPRUWLVHG FRVW LQFOXGLQJ WKH GLUHFWO\ plant and equipment attributable transaction costs) based on the effective interest rate of Guarantee comission 8 (18.26) (32.19) WKHERUURZLQJV$FFRUGLQJO\VXLWDEOHUHVWDWHPHQWDGMXVWPHQWVKDYH EHHQPDGHLQWKH5HVWDWHG6XPPDU\6WDWHPHQWRI3UR¿WDQG/RVV Provision for Site restoration (106.27) and Property, plant and equipment. liability Deferment of revenue (11,677.81) (7,127.63) 3) Fair value movement of FVOCI investments 3UHRSHUDWLYHH[SHQGLWXUH (1,680.07) 8QGHUSUHYLRXV*$$3QRQFXUUHQWLQYHVWPHQWVZHUHFDUULHGDWFRVW SHQGLQJDOORFDWLRQZULWWHQRII less provision for diminution (other than temporary). Under Ind AS, -RLQW9HQWXUH,PSDFW,%9 investment in equity shares (other than subsidiaries and associates) %UDVLO3HWUROHR/WGD DUH PHDVXUHG DW IDLU YDOXH ZLWK IDLU YDOXH FKDQJHV EHLQJ URXWHG -RLQW9HQWXUH,PSDFW through the other comprehensive income. 9LGHRFRQ,Q¿QLW\,QIUDVWUXWXUH 4) Foreign Currency Convertible bonds 3ULYDWH/LPLWHG /RVVRQ'LOXWLRQRIVWDNHRI 7KH FRPSDQ\ KDG LVVXHG )&&%V ZKLFK ZHUH PRGL¿HG LQ$XJXVW /LEHUW\9LGHRFRQ*HQHUDO 7KHVH ERQGV DUH LQ WKH QDWXUH RI FRPSRXQG ¿QDQFLDO ,QVXUDQFH&R/LPLWHG instrument and the equity and liability components have been 2WKHUV 8 11.60 UHÀHFWHG DFFRUGLQJO\ 6XEVHTXHQWO\ WKH LQWHUHVW FRVW DQG IRUHLJQ Deferred tax impact on 6 H[FKDQJH ÀXFWXDWLRQV KDYH EHHQ UHÀHFWHG WKURXJK 6WDWHPHQW RI above adjustments 3UR¿WDQG/RVV Total Equity as per Ind AS 28,049.86 86,902.90 5) Asset Retirement Obligation Reconciliation of total comprehensive income as previously The site restoration cost has been present valued and subsequent reported under IGAAP and Ind AS producing property asset has been created under Intangible assets. Interest accretion on the present valuation of the obligation and (` in Million) GHSUHFLDWLRQRQWKHSURGXFLQJSURSHUW\KDVEHHQUHÀHFWHGWKURXJK Particulars For the 15 6WDWHPHQWRI3UR¿WDQG/RVVDFFRXQW Note Months ended 6) Deferred Tax No. March 31, 2017 3UHYLRXV *$$3 UHTXLUHV GHIHUUHG WD[ WR EH UHFRJQLVHG ZLWK 1HWSUR¿WDIWHUWD[DVSHU (26,901.75) reference to the income statement approach. Ind AS 12 requires previous Indian GAAP HQWLWLHV WR GHWHUPLQH GHIHUUHG WD[HV ZLWK UHIHUHQFH WR WKH EDODQFH Amortised cost measurement of 2 VKHHWDSSURDFKZKLFKIRFXVHVRQWHPSRUDU\GLIIHUHQFHVEHWZHHQ ERUURZLQJV the carrying amount of an asset or liability in the balance sheet and Equity component of FCCB its tax base. The application of Ind AS 12 approach has resulted in recognised separately recognition of deferred tax related adjustments in relation to certain Fair valuation of PPE 1 LWHPVVXFKDVIDLUYDOXDWLRQRIODQGLQGH[DWLRQEHQH¿WRQODQGIDLU Guarantee comission 8 YDOXHRILQYHVWPHQWVZKLFKZHUHQRWUHTXLUHGWREHFRQVLGHUHGXQGHU Provision for Site restoration liability the income statement approach. Deferment of revenue 7) Actuarial gain and loss 3UHRSHUDWLYHH[SHQGLWXUHSHQGLQJ DOORFDWLRQZULWWHQRII Under previous GAAP, the company recognised remeasurement RQ GH¿QHG EHQH¿W SODQV RI WKH FRPSDQ\ ZHUH UHFRJQLVHG LQ WKH -RLQW9HQWXUH,QVXUDQFH6HJPHQW VWDWHPHQW RI 3UR¿W RU /RVV +RZHYHU DV SHU WKH UHTXLUHPHQWV RI Minority interest impact ,QG$6WKHFRPSDQ\KDVUHFRJQLVHGWKHVHLQ2WKHUFRPSUHKHQVLYH 2WKHUV 8 (26.96) income. Deferred tax impact on above 6 adjustments 8) Others Actuarial loss on remeasurement of 7 2WKHULPSDFWVLQFOXGHLPSDFWVRQ)LQDQFLDO*XDUDQWHHDQG:DUUDQW\ GH¿QHGEHQH¿WREOLJDWLRQ H[SHQVHV $W WKH GDWH RI WUDQVLWLRQ DOO WKH ¿QDQFLDO JXDUDQWHHV Deferred tax impact on above 6 (3.96) KDYH EHHQ LGHQWL¿HG DV ¿QDQFLDO LQVWUXPHQWV DV SHU ,QG$6 3UR¿W ORVV IRUWKH\HDUDVSHU (20,948.07) Commission income accretion on these guarantees has been Ind AS recorded under Deferred Commission income and subsequent Fair valuation of investments 3 1.07 XQZLQGLQJLVUHFRUGHGWKURXJK6WDWHPHQWRI3UR¿WDQG/RVV /RVVRQ'LOXWLRQRI/LEHUW\VWDNH ([WHQGHG ZDUUDQW\ SURYLVLRQ KDV EHHQ UHÀHFWHG DV QRQ FXUUHQW Change from full cost to successful ZDUUDQW\ SURYLVLRQ ZKLFK ZDV HDUOLHU D SDUW RI FXUUHQW SURYLVLRQ cost method for oil segment under IGAAP. Subsequenty the non current provision is discounted Actuarial loss on remeasurement of 7 WRLWVSUHVHQWYDOXHDQGVXEVHTXHQWXQZLQGLQJRIWKHLQWHUHVWFRVWLV GH¿QHGEHQH¿WREOLJDWLRQ DGMXVWHGWKURXJKWKH6WDWHPHQWRI3UR¿WDQG/RVV Deferred tax impact on above 6 3.96 Total comprehensive income for (30,862.76) the year as per Ind AS 100 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 2 Property, Plant and Equipment (` in Million) Particulars Freehold Leasehold Building Lease- Plant and Furnace Electrical Comput- Furniture 2I¿FH Vehicles Others Total Land Land hold Im- Machinery Installa- ers and Equip- prove- tion Fixtures ments ments Deemed Cost as at 12,307.32 788.97 177.06 316.37 -DQXDU\ Additions 0.31 2.97 1.97 26.21 Currency translation (2.80) (0.12) 0.22 (6.29) adjustment Disposals 1.09 26.93 0.01 0.13 Cost as at March31, 12,307.63 1,848.03 12,142.44 765.01 115,604.90 1,377.39 179.02 421.56 312.48 416.82 1,314.70 1.54 146,691.52 2017 (A) Accumulated 386.27 1.09 depreciation as at -DQXDU\ Depreciation for the 28.79 7,681.37 9.70 19.23 0.09 period Currency translation (1.98) (0.01) (2.80) 0.31 0.60 0.16 (3.87) adjustment Disposals 18.63 0.01 3.31 0.07 Accumulated - 28.79 2,363.53 496.61 69,836.47 1,364.29 159.46 401.13 259.17 385.95 1,007.79 1.27 76,304.46 depreciation as at March 31, 2017 (B) Net carrying amount 12,307.63 1,819.24 9,778.91 268.40 45,768.43 13.10 19.56 20.43 53.31 30.87 306.91 0.27 70,387.06 as at March 31, 2017 (A) - (B) Cost as at April 1, 12,307.63 1,377.39 179.02 2017 Additions 2.97 97.18 1.10 2.26 2.80 0.08 106.39 Disposals 139.90 0.60 70.07 39.03 Cost as at March 31, 12,310.60 1,846.53 12,142.44 714.15 115,668.04 1,237.49 178.42 352.59 246.21 380.59 1,064.58 1.62 146,143.26 2018 (A) Accumulated 28.79 1,007.79 1.27 depreciation as at April 1, 2017 Depreciation for the 0.77 121.91 61.02 11.68 6.28 81.67 year Disposals 37.78 Accumulated - 29.51 2,485.44 519.85 77,727.85 1,225.79 162.39 340.07 214.19 353.80 867.82 1.31 83,928.02 depreciation as at March 31, 2018 (B) Net carrying amount 12,310.60 1,817.02 9,657.00 194.30 37,940.19 11.70 16.03 12.52 32.02 26.79 196.76 0.31 62,215.24 as at March 31, 2018 (A) - (B) 7KH&RPSDQ\KDVGHFLGHGWRUHÀHFWIDLUYDOXHIRU/DQG OHDVHKROGDQGIUHHKROG DQG%XLOGLQJDVWKHGHHPHGFRVWDVSHU,QG$67KHIDLUYDOXDWLRQLPSDFWIRU-DQXDU\ 1, 2016 is `0LOOLRQIRUIUHHKROGODQG`0LOOLRQIRUOHDVHKROGODQGDQG` 0LOOLRQIRU%XLOGLQJ7KHQXPEHUVDUHJURVVDQGGRQRWLQFOXGHWD[ effect. 3ODQWDQG0DFKLQHU\ *URVV%ORFN LQFOXGHVDVVHWVFDSLWDOLVHGXQGHU¿QDQFHOHDVHRI`0LOOLRQ $VDW0DUFK `0LOOLRQ-DQXDU\ ` Million) and corresponding accumulated depreciation of `0LOOLRQ $VDW0DUFK `0LOOLRQ-DQXDU\ ` 802.20 Million). 2XWRIWKH'HSUHFLDWLRQIRUWKH\HDUDQDPRXQWRI`0LOOLRQ 3UHYLRXVSHULRG0DUFK `0LOOLRQ LVWUDQVIHUUHGWR³&DSLWDO:RUNLQ3URJUHVV´ 101 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 3 Other Intangible Assets (` in Million) Particulars Computer Software /LFHQVH6SHFWUXP)HHV Producing Properties Total *URVV%ORFNDVRQ-DQXDU\ 22,333.77 29,833.89 Accumulated depreciation 3,213.12 'HHPHG&RVW 1HWEORFN DVRQ-DQXDU\ 76.57 19,120.65 356.14 19,553.36 Particulars Computer Software /LFHQVH6SHFWUXP)HHV Producing Properties Total *URVV%ORFNDVDW-DQXDU\ 22,333.77 29,833.89 Additions Currency translation adjustment 0.08 0.08 'LVSRVDOVDGMXVWPHQWV 0.01 163.38 Cost as at March 31, 2017 (A) 1,227.62 59.37 6,169.61 7,456.60 $FFXPXODWHGGHSUHFLDWLRQDVDW-DQXDU\ 3,213.12 Depreciation for the period 688.06 Currency translation adjustment Disposals Accumulated depreciation as at March 31, 2017 (B) 1,180.41 21.32 6,100.87 7,302.60 Net carrying amount as at March 31, 2017 (A) - (B) 47.21 38.05 68.74 154.00 Cost as at April 1, 2017 1,227.62 6,169.61 Additions 0.17 22.68 'LVSRVDOVDGMXVWPHQWV 10.33 10.33 Cost as at March 31, 2018 (A) 1,217.46 59.37 6,192.12 7,468.95 Accumulated depreciation as at April 1, 2017 21.32 6,100.87 7,302.60 Depreciation for the year Disposals 8.60 8.60 Accumulated depreciation as at March 31, 2018 (B) 1,190.37 24.26 6,175.94 7,390.57 Net carrying amount as at March 31, 2018 (A) - (B) 27.09 35.11 16.18 78.38 The Company has availed the deemed cost exemption in relation to the intangible assets on the date of transition and hence the net block carrying amount as per SUHYLRXV*$$3KDVEHHQFRQVLGHUHGDVWKHJURVVEORFNFDUU\LQJDPRXQWDVRQ-DQXDU\ WUDQVLWLRQGDWH (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 4A Financial Assets - Non Current Equity accounted investees Unquoted a) Investment in equity of associates 5DGLXP$SSOLDQFHV3ULYDWH/LPLWHG 0.01 0.01 0.01 8QLW\3RZHU3ULYDWH/LPLWHG 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUHV3ULYDWH/LPLWHG 9,63///3 0.09 b) ,QYHVWPHQWLQHTXLW\RIMRLQWYHQWXUH ,%9%UDVLO3HWUROHR/WGD /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG Total (A) 4,089.33 5,805.93 2,150.90 102 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 4B Other Investments Quoted Investments measured at fair value through other comprehensive income Investments in Equity Instruments 102.97 123.02 Unquoted Investments measured at fair value through other comprehensive income Investments in Equity Instruments 18,112.12 18,099.61 ,QYHVWPHQWVPHDVXUHGDWIDLUYDOXHWKURXJKSUR¿WRUORVV ,Q8QLWV )XOO\3DLGXS 0XWXDO)XQGV ,QYHVWPHQWVLQ&RRSHUDWLYHEDQN Investments measured at amortised cost ,Q5HGHHPDEOH3UHIHUHQFH6KDUHV 1,062.68 1,062.68 In Government Securities 0.02 0.02 0.02 ,Q%RQGV'HEHQWXUHV )XOO\3DLGXS 12,860.00 Total (B) 32,132.64 34,085.56 22,492.89 Total (A+B) 36,221.97 39,891.49 24,643.79 Aggregate amount of Quoted Investments 102.97 123.02 Aggregate Market value of Quoted Investments 102.97 123.02 Aggregate amount of Unquoted Investments 36,117.29 Note 5 Financial Assets - Non Current Loans Sundry deposits /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV /RDQVDQGDGYDQFHVWRRWKHUV 92,017.97 224,792.85 129,162.84 117,669.21 Note 6 Financial Assets - Non Current Others %DQNEDODQFHVRWKHUWKDQ D EHORZ )L[HGGHSRVLWVZLWKPDWXULW\PRUHWKDQPRQWKV 1,097.71 (Held as margin money for credit facilities and other commitments) 198.57 1,658.93 1,097.71 Note 7 Other non-current assets Capital advance 7,612.98 %DODQFHZLWKJRYHUQPHQWDXWKRULWLHV 2,102.79 8,052.28 8,080.51 13,030.91 Note 8 Inventories (valued at lower of cost or net realisable value) 5DZPDWHULDOVLQFOXGLQJFRQVXPDEOHVVWRUHVDQGVSDUHV 8,179.31 0DWHULDOVLQWUDQVLWDQGLQERQGHGZDUHKRXVH 702.39 :RUNLQSURFHVV Finished goods and stock in trade Drilling and production materials 388.36 Crude oil Sim card 14,089.98 28,660.70 23,649.06 103 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 9 Financial Assets - Current Current investments 8QTXRWHG Investment in units of Mutual Funds - - 52.39 Note 10 Financial Assets - Current Trade receivables Unsecured considered good Considered Doubtful 3,697.08 382.71 382.10 11,130.76 /HVV 3URYLVLRQIRUGRXEWIXOGHEWV 3,697.08 382.71 382.10 7,433.68 24,439.63 30,477.79 Note 11a Financial Assets - Current Cash and cash equivalents Cash on hand 8.36 13.07 &KHTXHV'UDIWVRQKDQGLQWUDQVLW 111.96 237.62 0.36 %DODQFHZLWKEDQNV in Current accounts 2,818.20 13,290.39 In Fixed Deposits having maturity of 3 months or less 0.02 3.09 2,935.74 1,987.71 13,378.69 Note 11b Financial Assets - Current %DQNEDODQFHVRWKHUWKDQ D DERYH ,Q'LYLGHQGZDUUDQWDFFRXQWV 6.21 8.23 In Fixed deposits earmarked 791.67 606.00 ,Q)L[HGGHSRVLWVHDUPDUNHGWRZDUGVVLWHUHVWRUDWLRQFRVWV 1,199.33 ,Q)L[HGGHSRVLWVOLHQLQIDYRXURIWKH5HJLVWUDU6XSUHPH&RXUWRI,QGLD 2,838.63 ,Q2WKHU)L[HGGHSRVLWVZLWKPDWXULW\PRQWKVRUOHVV Held as margin money for credit facilities and other commitments 3,110.37 Provided as security for overdraft facility 4,768.21 8,508.40 28,224.65 Note 12 Financial Assets - Current Loans 8QVHFXUHGFRQVLGHUHGJRRGXQOHVVRWKHUZLVHVSHFL¿HG Sundry deposits 9.61 8.22 /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV /RDQVDQGDGYDQFHVWRRWKHUV 111,807.17 186,910.77 112,150.38 186,920.96 216,471.07 Note 13 Financial Assets - Current Others Insurance claim receivable 0.97 2WKHUUHFHLYDEOHV 319.66 472.41 320.63 131.91 Note 14 Other current assets Deferred guarantee income 9.28 %DODQFHZLWKJRYHUQPHQWDXWKRULWLHV 2,100.76 382.72 866.27 2,110.04 382.72 866.27 104 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 15 Share Capital a) Details of the authorised, issued, subscribed and paid-up share capital as below: (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 i) Authorised Capital 0DUFK -DQXDU\ 13,000.00 13,000.00 13,000.00 1,300,000,000) equity shares of the par value of ` 10 each 0DUFK -DQXDU\ 2,000.00 2,000.00 2,000.00 20,000,000) redeemable preference shares of ` 100 each 15,000.00 15,000.00 15,000.00 ii) ,VVXHG6XEVFULEHGDQG3DLGXS 0DUFK -DQXDU\ HTXLW\VKDUHVRI` 10 each fully paid up 3,344.59 3,344.59 3,344.59 E 5HFRQFLOLDWLRQRIWKHQXPEHURIVKDUHVRXWVWDQGLQJDWWKHEHJLQQLQJDQGHQGRIWKH\HDUSHULRG As at March 31, 2018 As at March 31, 2017 As at January 1, 2016 No. of Shares ` in Million No. of Shares ` in Million No. of Shares ` in Million $WWKHEHJLQQLQJRIWKH\HDUSHULRG ,VVXHGGXULQJWKH\HDUSHULRG $WWKHHQGRIWKH\HDUSHULRG c) Rights, Preferences and restrictions attached to equity shares: i) The Company has a single class of equity shares referred to as equity shares having par value of `SHUVKDUH(DFKKROGHURIHTXLW\ shares is entitled to equal right of voting and dividend. LL ,QWKHHYHQWRIOLTXLGDWLRQRIWKH&RPSDQ\WKHKROGHUVRIHTXLW\VKDUHVZLOOEHHQWLWOHGWRUHFHLYHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHU GLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV7KHGLVWULEXWLRQZLOOEHLQSURSRUWLRQWRWKHQXPEHURIHTXLW\VKDUHVKHOGE\WKHVKDUHKROGHUV d) Details of Shareholders holding more than 5% Shares: Name of Shareholders As at March 31, 2018 As at March 31, 2017 As at January 1, 2016 No. of Shares RI+ROGLQJ No. of Shares RI+ROGLQJ No. of Shares RI+ROGLQJ a) 'RPH%HOO(OHFWURQLFV ,QGLD3ULYDWH/LPLWHG b) Shree Dhoot Trading 6.13 26,179,336 7.83 DQG$JHQFLHV/LPLWHG $PDOJDPDWHGZLWK Electroparts India 3ULYDWH/LPLWHG c) 9LGHRFRQ5HDOW\DQG 19.12 ,QIUDVWUXFWXUHV/LPLWHG d) Deutsche Bank Trust 11.61 11.61 11.87 Company Americas (As depository of *OREDO'HSRVLWV5HFHLSWV (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 16 Other equity &DSLWDO5HVHUYH &DSLWDO5HGHPSWLRQ5HVHUYH Securities Premium Account %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH 1,222.83 1,218.97 1,618.38 /HJDO5HVHUYH 0.32 0.32 0.32 ([FKDQJHGLIIHUHQFHVLQWUDQVODWLQJ¿QDQFLDOVWDWHPHQWVRIIRUHLJQRSHUDWLRQV 105 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 (TXLW\FRPSRQHQWRIFRPSRXQG¿QDQFLDOLQVWUXPHQWV (TXLW\LQVWUXPHQWVWKURXJK2&, (36.22) 'HEWLQVWUXPHQWVWKURXJK2&, 66.12 *HQHUDO5HVHUYH 5HWDLQHG(DUQLQJV (103,233.72) (37,879.91) (39,528.44) 24,705.27 83,558.31 Capital Reserve Capital reserve represents subsidy received, reserves transferred on account of amalgamation. Capital Redemption Reserve The Company recognises the capital redemption reserve from its retained earnings as per the provisions of Companies Act, 2013, as applicable. %RQG'HEHQWXUH5HGHPSWLRQ5HVHUYH The Company had issued Foreign currency convertible bonds and as per the provisions of the Companies Act, 2013, is required to create debenture UHGHPSWLRQUHVHUYHRXWRIWKHSUR¿WVRIWKH&RPSDQ\DYDLODEOHIRUWKHSD\PHQWRIGLYLGHQG ([FKDQJHGLIIHUHQFHVLQWUDQVODWLQJ¿QDQFLDOVWDWHPHQWVRIIRUHLJQRSHUDWLRQV ,QDFFRUGDQFHZLWK,QG$6WKH*URXSKDVHOHFWHGWRGHHPIRUHLJQFXUUHQF\WUDQVODWLRQGLIIHUHQFHVWKDWDURVHSULRUWRWKHGDWHRIWUDQVLWLRQWR,QG $6 -DQXDU\ LQUHVSHFWRIDOOIRUHLJQRSHUDWLRQVWREH1LODWWKHGDWHRIWUDQVLWLRQ)URP-DQXDU\RQZDUGVVXFKH[FKDQJHGLIIHUHQFHV are recognised through other comprehensive income. (TXLW\FRPSRQHQWRIFRPSRXQG¿QDQFLDOLQVWUXPHQW The account represents the equity component of Foreign currency convertible bonds calculated as per Ind AS 109. Equity instruments through OCI This account represents the fair value changes in the investments calculated at every reporting date as per Ind AS 109. Debt instruments through OCI This account represents the fair value changes in the debt investments calculated at every reporting date as per Ind AS 109 General Reserve 7KH&RPSDQ\ZDVUHTXLUHGWRWUDQVIHUDSRUWLRQRIWKHQHWSUR¿WRIWKH&RPSDQ\EHIRUHGHFODULQJGLYLGHQGWRJHQHUDOUHVHUYHSXUVXDQWWRWKHHDUOLHU SURYLVLRQRIFRPSDQLHV$FW 0DQGDWRU\WUDQVIHUWRJHQHUDOUHVHUYHLVQRWUHTXLUHGXQGHUWKH&RPSDQLHV$FW Retained Earnings 7KLVDFFRXQWLQFOXGHVWKHDPRXQWRISUR¿WDQGORVVDFFRXQWWUDQVIHUUHGWRWKHHTXLW\ Minority Interest 1RQ&RQWUROOLQJ,QWHUHVW 1,066.13 (` in Million) As at March 31, As at March 31, As at January 1, 2018 2017 2016 Note 17 Financial Liabilities Non current borrowings i) Secured Term loans from banks 1,670.33 299,306.81 7HUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV 9,863.18 9HKLFOHORDQIURPEDQNV 8.87 6.62 /RDQIURPRWKHUV Foreign currency convertible bonds 6,120.33 Deferred payment liabilities ii) Unsecured /RDQIURPRWKHUV 26.00 26.00 26.00 1,696.33 355,834.14 325,159.82 106 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Details of Non-current borrowings: Particulars ` Million Carrying rate of interest Other Details March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Principal outstanding Secured 7HUPORDQVIURPEDQNV¿QDQFLDOLQVWLWXWLRQV WR WR 5HIHUQRWH D EHORZ Term loans from banks 1,738.27 WR 5HIHUQRWH D EHORZ 9HKLFOHORDQIURPEDQNV WR WR 5HIHUQRWH E EHORZ Foreign currency convertible bonds 5HIHUQRWH F EHORZ /RDQVIURPRWKHUV N.A. N.A. Unsecured /RDQVIURPRWKHUV 26.00 26.00 N.A. 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LY /RDQVDPRXQWLQJWR`0LOOLRQ $VDW0DUFK`0LOOLRQ LVVHFXUHGE\PRUWJDJHRIVSHFL¿HGSURSHUW\RZQHGE\WKH &RPSDQ\QHJDWLYHOLHQRQSURSHUW\RZQHGE\RWKHUHQWLWLHVDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1 Dhoot. Y /RDQVDPRXQWLQJWR` 0LOOLRQ $VDW0DUFK`0LOOLRQ DUHVHFXUHGE\¿UVWSDULSDVVX charge on existing and IXWXUHDVVHWVRIWKH6XEVLGLDU\&RPSDQ\YL]9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ DVVLJQPHQWRIDOOWHOHFRPOLFHQVHVKHOG97/E\ ZD\RIWULSDUWLWHDJUHHPHQWWREHH[HFXWHGEHWZHHQWKH'HSDUWPHQWRI7HOHFRPPXQLFDWLRQV97/DQG/HQGHUVDQGSHUVRQDOJXDUDQWHHRI0U 9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW 107 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS b) Details relating to vehicle loans 9HKLFOH/RDQIURP%DQNVDUHVHFXUHGE\ZD\RIK\SRWKHFDWLRQRI9HKLFOHVDFTXLUHGRXWRIWKHVDLGORDQ7KHORDQVDUHDOVRVHFXUHGE\SHUVRQDO JXDUDQWHHRI0U9HQXJRSDO1'KRRW c) Details relating to foreign currency convertible bonds 7KH&RPSDQ\KDVLVVXHGSHUFHQWIRUHLJQFXUUHQF\FRQYHUWLEOHERQGV %RQGV RI86 GXULQJWKH\HDUGXHRQ'HFHPEHU 0DWXULW\'DWH 7KHVH%RQGVZHUHLVVXHGXQGHUWKHH[FKDQJHRIIHUWRWKHKROGHUVRIWKH%RQGVRI86 GXHRQ'HFHPEHU i) The Bonds are convertible at the option of the bondholders into shares, at any time on and after February 9, 2016, up to the close of business RQ'HFHPEHUDWD¿[HGH[FKDQJHUDWHRQFRQYHUVLRQRI` SHU86DQGDWLQLWLDOFRQYHUVLRQSULFHRI`SHUVKDUH 7KHFRQYHUVLRQSULFHZLOOEHVXEMHFWWRDGMXVWPHQWIRUDPRQJRWKHUWKLQJVVXEGLYLVLRQRUFRQVROLGDWLRQRIVKDUHVERQXVLVVXHVGLYLGHQGV rights issues, distributions and other dilutive events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that the entire FCCBs are due and payable. The Company has termed same being illegal and premature. Accordingly, the amount of foreign FXUUHQF\FRQYHUWLEOHERQGVKDVEHHQVKRZQXQGHUVKRUWWHUPERUURZLQJV LY 7KH%RQGVZHUHFRPSHOOHGWREHVHFXUHGE\ZD\RIDQH[FOXVLYH¿UVWUDQNLQJVHFXULW\LQWHUHVWRYHUSHUFHQWRIWKHLVVXHGHTXLW\VKDUH FDSLWDORI9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHGKHOGE\WKH&RPSDQ\DQGRWKHUVKDUHKROGHUVLQIDYRXURIWKH6HFXULW\7UXVWHH DQGE\DQ XQFRQGLWLRQDODQGLUUHYRFDEOHSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW+RZHYHULWLVWKHFDVHRIWKH FRPSDQ\WKDWWKHSXWRSWLRQFODXVHZDVPHQWLRQHGLQWKHFRQWUDFWXQGHUGXUHVVDQGQRDPRXQWKDV\HWEHFRPHGXHDQGSD\DEOHDQGKDG ¿OHGFODLPFKDOOHQJLQJWKHDFWLRQRIWKHERQGKROGHUVLQFRXUWRI/RQGRQ (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 18 Provisions 3URYLVLRQIRUJUDWXLW\ 5HIHU1RWH 179.30 Provision for abandonment and site restoration costs 2,021.92 3URYLVLRQIRUZDUUDQW\DQGPDLQWHQDQFHH[SHQVHV 217.37 199.87 1,750.14 1,814.51 2,436.91 Note 19 Deferred tax liabilities (net) Deferred tax liabilities (net) 2,773.53 8,523.81 12,942.43 Note 20 Financial Liabilities Current Borrowings i) Secured Term loans from banks 10,766.63 7HUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV 9HKLFOHORDQIURPEDQNV 2YHUGUDIWDJDLQVW¿[HGGHSRVLWV /RDQVIURPRWKHUV 13.39 13.39 Foreign currency convertible bonds Working capital loans from banks 11,961.22 ii) Unsecured /RDQVIURPEDQNV 8,670.03 500,911.68 27,183.31 50,022.46 108 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Details of Current borrowings: Particulars ` in Million Carrying rate of interest Other Details March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 Principal outstanding Secured 7HUPORDQVIURPEDQNV¿QDQFLDOLQVWLWXWLRQV WR N.A. 5HIHUQRWH D DERYH Term loans from banks WR N.A. 5HIHUQRWH D DERYH Term loans from banks WR N.A. 5HIHUQRWH D DERYH Term loans from banks 5HIHUQRWH D EHORZ 9HKLFOHORDQIURPEDQNV WR N.A. 5HIHUQRWH E DERYH /RDQVIURPRWKHUV 13.39 13.39 5HIHUQRWH E EHORZ Foreign currency convertible bonds N.A. 5HIHUQRWH F DERYH Working capital loans from banks WR WR 5HIHUQRWH F EHORZ Unsecured /RDQVIURPEDQNV N.A. WR 5HIHUQRWH G EHORZ 7RWDO3ULQFLSDO2XWVWDQGLQJ 26,699.61 $GG ,QWHUHVWDFFUXHGDQGGXHDFFUXHGEXW not due /HVV ,QG$6UHFODVVL¿FDWLRQDGMXVWPHQWV 27,183.31 D 'HWDLOVUHODWLQJWRWHUPORDQVIURPEDQNVDQG¿QDQFLDOLQVWLWXWLRQV L 'XHWRGHIDXOWLQUHSD\PHQWRIWKHVHFXUHGORDQVIURPWKHEDQNVDQG¿QDQFLDOLQVWLWXWLRQVWKH\KDYHUHFDOOHGWKHHQWLUHORDQVRXWVWDQGLQJ $FFRUGLQJO\WKHVHKDYHEHHQLQFOXGHGXQGHUVKRUWWHUPERUURZLQJV)RUVHFXULWLHVIRUWKHORDQVDOVR5HIHUQRWHQR D LL /RDQVDPRXQWLQJWR` 0LOOLRQ $VDW0DUFK` 0LOOLRQ LVVHFXUHGE\H[FOXVLYHFKDUJHRYHUWKHODQGVLWXDWHGDW'LVW 5HZD0DGK\D3UDGHVKRZQHGE\WKH6XEVLGLDU\&RPSDQ\YL]3URVSHURXV(QHUJ\3ULYDWH/LPLWHGVWDNHLQ37*DXQJ$ODP6HPHVWD¶VFRDO FRQFHVVLRQLQ,QGRQHVLDRZQHGE\RWKHUHQWLWLHVDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRWDQG0U3UDGLSNXPDU1'KRRW b) Details relating to loans from others /RDQVIURPRWKHUVDPRXQWLQJWR` 13.39 Million (As at March 31, 2017: ` 13.39 Million) is secured against surrender value of keyman insurance policy. F 'HWDLOVUHODWLQJWRZRUNLQJFDSLWDOORDQVIURPEDQNV :RUNLQJFDSLWDOORDQVIURPEDQNVDUHVHFXUHGE\K\SRWKHFDWLRQRIWKH&RPSDQ\¶VVWRFNRIUDZPDWHULDOVSDFNLQJPDWHULDOVVWRFNLQSURFHVV ¿QLVKHGJRRGVVWRUHVDQGVSDUHVERRNGHEWVRIJODVVVKHOOGLYLVLRQDQGSHUVRQDOJXDUDQWHHRI0U9HQXJRSDO1'KRRW0U3UDGLSNXPDU1'KRRW DQG0U5DMNXPDU1'KRRW G 'HWDLOVUHODWLQJWRXQVHFXUHGORDQVIURPEDQNV i) Unsecured loans from banks amounting to ` Nil (As at March 31, 2017 ` 0LOOLRQ LVVHFXUHGE\OLHQPDUNHGRQ¿[HGGHSRVLWVRIRWKHU entities. ii) Unsecured loans from banks amounting to ` Nil (As at March 31, 2017 `0LOOLRQ LVVHFXUHGE\QHJDWLYHOLHQRQSURSHUW\RZQHGE\ other entity. (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 21 Financial Liabilities - Current Trade payables Total outstanding due to micro and small enterprises 171.77 97.62 Total outstanding due to creditors other than micro and small enterprises 21,397.80 15,368.99 21,918.60 15,085.85 Note 22 Financial Liabilities - Current Others &XUUHQWPDWXULWLHVRIQRQFXUUHQWERUURZLQJV Bank overdraft as per books 23.97 60.96 300.86 Creditors for capital expenditure 290.78 2WKHUSD\DEOHV 8,261.82 82,278.91 112,112.17 109 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) As at As at As at March 31, 2018 March 31, 2017 January 1, 2016 Note 23 Other current liabilities Deferred guarantee income 37.19 Unclaimed dividend 6.21 8.23 Advances from customers and unearned income 82.87 2WKHUV 1,133.78 1,254.96 1,233.84 2,093.93 Note 24 Provisions 3URYLVLRQIRUJUDWXLW\ 5HIHU1RWH 31.18 3URYLVLRQIRUOHDYHHQFDVKPHQW 5HIHU1RWH 3URYLVLRQIRUZDUUDQW\DQGPDLQWHQDQFHH[SHQVHV 399.81 568.01 520.87 524.30 Movement of provision for warranty and maintenance expenses (` in Million) As at As at March 31, 2018 March 31, 2017 $WWKHFRPPHQFHPHQWRIWKH\HDUSHULRG 627.63 3URYLVLRQPDGHGXULQJWKH\HDUSHULRG 639.23 Utilisation of provisions 639.23 619.07 Discounting of nun current provision (26.97) 8QXVHGDPRXQWUHYHUVHGGXULQJWKH\HDUSHULRG 19.18 $WWKHHQGRIWKH\HDUSHULRG 546.10 627.63 Provision for warranty and maintenance expenses $SURYLVLRQLVHVWLPDWHGIRUH[SHFWHGZDUUDQW\FODLPVLQUHVSHFWRISURGXFWVVROGRQWKHEDVLVRIDWHFKQLFDOHYDOXDWLRQDQGSDVWH[SHULHQFHUHJDUGLQJ IDLOXUHWUHQGVRISURGXFWVDQGFRVWVRIUHFWL¿FDWLRQDQGUHSODFHPHQW7KHFRVWVLQFOXGHH[SHQVHVWREHLQFXUUHGIRUUHSDLUVUHSODFHPHQWPDWHULDOFRVW DQGVHUYLFLQJ,WLVH[SHFWHGWKDWWKLVH[SHQGLWXUHZLOOEHLQFXUUHGRYHUWKHFRQWUDFWXDOZDUUDQW\SHULRGWKDWLVXVXDOO\RQH\HDUDQGIRUFHUWDLQRIFDVHV H[WHQGHGZDUUDQW\IRUWZRWR¿YH\HDUV (` in Million) Particulars Year ended 15 months ended March 31, 2018 March 31, 2017 Note 25 Revenue from operations 6DOHRISURGXFWVVHUYLFHV 131,016.90 Income from other services 218.69 209.13 2WKHURSHUDWLQJUHYHQXH 190.37 30,075.59 131,624.47 Note 26 Other income Interest income Income from investments and securities division 13.93 ([FKDQJHUDWHÀXFWXDWLRQ Insurance claim received 7.10 *DLQRQPRGL¿FDWLRQRI¿QDQFLDOLQVWUXPHQW Guarantee commision 8QZLQGLQJRIGLVFRXQWRQVLWHUHVWRUDWLRQSURYLVLRQ Expenses pending allocation 2WKHUQRQRSHUDWLQJLQFRPH 2,383.12 20,855.15 4,294.12 110 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) Particulars Year ended 15 months ended March 31, 2018 March 31, 2017 Note 27 Cost of materials consumed Cost of materials consumed 25,223.21 44,284.86 Note 28 3XUFKDVHRIVWRFNLQWUDGH Electrical and Electronic items 9,006.11 9,006.11 43,058.10 Note 29 &KDQJHVLQLQYHQWRULHVRI¿QLVKHGJRRGVZRUNLQSURJUHVV DQGVWRFNLQWUDGH Opening inventory )LQLVKHGJRRGVDQGVWRFNLQWUDGH :RUNLQSURFHVV 5,892.27 6,104.37 Closing inventory )LQLVKHGJRRGVDQGVWRFNLQWUDGH :RUNLQSURFHVV 4,827.54 5,892.27 Changes in inventory 1,064.73 212.10 Note 30 Production and exploration expenses - Oil and Gas Production and exploration expenses 3,229.90 5R\DOW\ Cess 219.12 Production bonus *RYHUQPHQWVKDUHLQSUR¿WSHWUROHXP 2,922.98 Insurance expenses 4,638.84 6,606.07 Note 31 $FFHVVFKDUJHVOLFHQVHIHHVDQGQHWZRUNH[SHQVHV Access and roaming charges /LFHQVHIHHVDQG:3&FKDUJHV 5HQW 8.13 /HDVHGOLQHSRUWDQGEDQGZLGWKFKDUJHV 2,008.86 3RZHUDQGIXHO IT expenses 7.23 2WKHUYDOXHDGGHGVHUYLFHVFKDUJHV 0.90 Sim cost 1HWZRUNH[SHQVHV2WKHUV 8.29 6LWHH[SHQVHV0DQDJHGVHUYLFHV 28.29 Freight and carriage expenses 5HSDLUVDQGPDLQWHQDQFH6LWHEXLOGLQJV 2.63 1,410.95 14,424.20 Note 32 (PSOR\HH%HQH¿WV([SHQVHV 6DODU\:DJHVDQG2WKHU%HQH¿WV 3,836.71 &RQWULEXWLRQWR3URYLGHQW)XQGDQG2WKHU)XQGV 119.33 Staff Welfare Expenses 100.31 171.38 2,311.78 4,222.80 111 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) Particulars Year ended 15 months ended March 31, 2018 March 31, 2017 Note 33 Finance Costs ,QWHUHVWH[SHQVHRQ¿QDQFLDOOLDELOLWLHVPHDVXUHGDWDPRUWLVHGFRVW 2WKHUERUURZLQJFRVWV 8QZLQGLQJRIGLVFRXQWRQZDUUDQW\SURYLVLRQ 10.36 8QZLQGLQJRIGLVFRXQWRQVLWHUHVWRUDWLRQSURYLVLRQ 98.63 49,479.50 51,271.60 Note 34 Other Expenses 3RZHUIXHODQGZDWHU )UHLJKWDQGIRUZDUGLQJ 1,602.11 9HKLFOHUXQQLQJH[SHQVHV 5HQWUDWHVDQGWD[HV 5HSDLUVWREXLOGLQJ 13.92 5HSDLUVWRSODQWDQGPDFKLQHU\ 11.88 2WKHUUHSDLUVDQGPDLQWHQDQFH 61.13 73.17 Insurance 72.86 Advertisement and publicity Sales promotion expenses 202.97 Bank charges Payment to auditors 13.36 Directors' sitting fees 1.31 /HJDODQGSURIHVVLRQDOFKDUJHV 732.26 912.29 Customer service cost 0.13 5R\DOW\ 117.70 387.92 Printing and stationery 6.77 Warranty and maintenance 890.91 Provision for doubtful debts 20.86 /RVVRQVDOHRI¿[HGDVVHWV 906.32 /RVVRQVDOHRILQYHVWPHQWV 2,218.30 2I¿FHDQGJHQHUDOH[SHQVHV 1,820.78 12,051.25 10,692.61 Note 35 Income Taxes a) $PRXQWVUHFRJQLVHGLQVWDWHPHQWRISUR¿WDQGORVV Current tax expense 0.29 3.39 MAT credit entitlement (3.20) Changes in estimates related to prior period 0.09 (0.30) Deferred tax expense 2ULJLQDWLRQDQGUHYHUVDORIWHPSRUDU\GLIIHUHQFHV 7D[H[SHQVHIRUWKH\HDUSHULRG (5,763.33) (4,360.95) b) Amounts recognised in other comprehensive income 'HIHUUHGWD[RQUHPHDVXUHPHQWVRIWKHGH¿QHGEHQH¿WSODQV (3.96) 'HIHUUHGWD[RQHTXLW\LQVWUXPHQWV)972&, (13.43) (3.96) c) Reconciliation of effective tax rate 3UR¿WEHIRUHWD[ Statutory income tax rate Effective tax amount (12,782.88) Tax effect of: 3UR¿WRQVDOHRILQYHVWPHQWV (20,077.18) 3HUPDQHQWGLVDOORZDEOHV 11.10 10.16 112 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) Particulars Year ended 15 months ended March 31, 2018 March 31, 2017 Business loss 11,336.26 Change in interest tax rate 'LIIHUHQFHGXHWRRSHQLQJDQGFORVLQJ:'9RISURGXFLQJSURSHUWLHV Difference due to producing properties (21.06) Indexation impact on account of fair valuation of land and building 0$7ZULWWHQRIIRQDFFRXQWRIXQFHUWDLQLW\ Deferred tax not created on losses of Group (166.92) 2WKHUV (960.23) Total tax expense (5,763.33) (4,360.95) Deferred Tax assets and liabilities are attributable to the following: (` in Million) Particulars 1HWGHIHUUHG7D[$VVHW OLDELOLWLHV March 31, 2018 March 31, 2017 January 1, 2016 5HODWHGWRGHSUHFLDWLRQDQGDPRUWLVDWLRQRQ¿[HGDVVHWV 9,060.26 ([SHQVHVFKDUJHGLQWKH¿QDQFLDOVWDWHPHQWVEXWDOORZDEOH (13,962.60) (2,967.02) as deduction in future years under the Income Tax Act, 1961 MAT credit entitlement (11.31) Fair valuation of investments Provision for Site restoration liability %RUURZLQJFRVWDPRUWLVDWLRQDVSHU(,5 71.90 Guarantee comission and reversal of inter company guarantee )DLUYDOXDWLRQRI/DQGEXLOGLQJDQGSODQW PDFKLQHU\ Impact of change in tax rate for capital gains tax 100.69 2WKHUV (18.30) (19.93) (16.00) 1HWGHIHUUHGWD[ DVVHWV OLDELOLW\ 2,773.53 8,523.81 12,942.43 Movement in Temporary differences: (` in Million) Particulars Balance Recognised in Recognised Balance Recognised in Recognised Balance as at January 3UR¿WDQG/RVV in OCI as at March 3UR¿WDQG/RVV in OCI as at March 1, 2016 during 2016-17 during 2016-17 31, 2017 during 2017-18 during 2017-18 31, 2018 5HODWHG WR GHSUHFLDWLRQ DQG 9,060.26 DPRUWLVDWLRQRQ¿[HGDVVHWV ([SHQVHV FKDUJHG LQ WKH ¿QDQFLDO (2,967.02) (13,962.60) VWDWHPHQWV EXW DOORZDEOH DV deduction in future years under the Income Tax Act, 1961 MAT credit entitlement (11.31) Fair valuation of investments Provision for Site restoration liability %RUURZLQJFRVWDPRUWLVDWLRQDVSHU (173.08) 71.90 (26.18) (,5 Guarantee comission and reversal 82.69 of inter company guarantee )DLUYDOXDWLRQRI/DQGEXLOGLQJDQG (786.18) 2,670.11 plant & machinery Impact of change in tax rate for 100.69 capital gains tax (PSOR\HHEHQH¿WH[SHQVH (3.96) 3.96 2WKHUV (16.00) (3.93) (19.93) 1.63 (18.30) Total 12,942.43 (4,360.84) (57.78) 8,523.81 (5,763.71) 13.43 2,773.53 113 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 36 Earnings per share (EPS) %DVLF(36FDOFXODWHGE\GLYLGLQJWKHQHWSUR¿WIRUWKH\HDUDWWULEXWDEOHWRHTXLW\KROGHUVE\WKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJ GXULQJWKH\HDUSHULRG 'LOXWHG(36DPRXQWVDUHFDOFXODWHGE\GLYLGLQJWKHSUR¿WDWWULEXWDEOHWRHTXLW\KROGHUV DIWHUDGMXVWLQJSUR¿WLPSDFWRIGLOXWLYHSRWHQWLDOHTXLW\VKDUHV LIDQ\ E\WKHDJJUHJDWHRIZHLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJGXULQJWKH\HDUSHULRGDQGWKHZHLJKWHGDYHUDJHQXPEHURIHTXLW\ VKDUHVWKDWZRXOGEHLVVXHGRQFRQYHUVLRQRIDOOWKHGLOXWLYHSRWHQWLDOHTXLW\VKDUHVLQWRHTXLW\VKDUHV Particulars Year ended 15 months ended March 31, 2018 March 31, 2017 Basic and diluted earnings per share for ordinary shareholders a) 3UR¿W /RVV DWWULEXWDEOHWRHTXLW\VKDUHKROGHUV ` Million) b) Weighted average number of equity shares c) Basic and diluted earnings per share (`) d) Nominal value of equity shares (`) 10.00 10.00 Note: D :HLJKWHGDYHUDJHQXPEHURIVKDUHVLVWKHQXPEHURIHTXLW\VKDUHVRXWVWDQGLQJDWWKHEHJLQQLQJRIWKH\HDUSHULRGDGMXVWHGE\WKHQXPEHURIHTXLW\ VKDUHVLVVXHGGXULQJ\HDUSHULRGPXOWLSOLHGE\WKHWLPHZHLJKWLQJIDFWRU7KHWLPHZHLJKWLQJIDFWRULVWKHQXPEHURIGD\VIRUZKLFKWKHVSHFL¿F VKDUHVDUHRXWVWDQGLQJDVDSURSRUWLRQRIWRWDOQXPEHURIGD\VGXULQJWKH\HDUSHULRG b) The effect of conversion option of FCCBs is anti dilutive in nature. F 7KH¿QDQFLDOLQVWLWXWLRQVKDYHDULJKWWRFRQYHUWDWWKHLURSWLRQWKHZKROHRXWVWDQGLQJDPRXQWRIWHUPORDQVRUDSDUWQRWH[FHHGLQJRI GHIDXOWHGDPRXQWRIORDQZKLFKHYHULVORZHULQWRIXOO\SDLGXSHTXLW\VKDUHVRIWKH&RPSDQ\DWSDURQGHIDXOWLQSD\PHQWVUHSD\PHQWVRIWKUHH FRQVHFXWLYHLQVWDOOPHQWVRISULQFLSDODQGRULQWHUHVWWKHUHRQRURQPLVPDQDJHPHQWRIWKHDIIDLUVRIWKH&RPSDQ\6XFKFRQYHUVLRQDUHFRQVLGHUHG WREHDQWLGLOXWLYHLQQDWXUHDQGKHQFHQRWFRQVLGHUHGIRUFRPSXWDWLRQRIWKHGLOXWHGHDUQLQJVSHUVKDUH Note 37 (PSOR\HHEHQH¿WV $ 'H¿QHG&RQWULEXWLRQ3ODQV 7KHFRQWULEXWLRQVSDLGSD\DEOHWR3URYLGHQW)XQG(PSOR\HHV6WDWH,QVXUDQFH6FKHPH(PSOR\HHV3HQVLRQ6FKHPHV DQGRWKHUIXQGVDUH GHWHUPLQHGXQGHUWKHUHOHYDQWDSSURYHGVFKHPHVDQGRUVWDWXWHVDQGDUHUHFRJQLVHGDVH[SHQVHLQWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVV GXULQJWKH\HDUSHULRGLQZKLFKWKHHPSOR\HHUHQGHUVWKHUHODWHGVHUYLFH7KHUHDUHQRIXUWKHUREOLJDWLRQVRWKHUWKDQWKHFRQWULEXWLRQVSD\DEOHWR WKHDSSURYHGWUXVWVDSSURSULDWHDXWKRULWLHV 7KH*URXSKDVUHFRJQLVHGWKHIROORZLQJDPRXQWVLQWKHFRQVROLGDWHGVWDWHPHQWRISUR¿WDQGORVVIRUWKH\HDUSHULRG (` in Million) Particulars March 31, 2018 March 31, 2017 Employer's contribution to Provident Fund and ESIC 119.33 119.33 214.71 % 'H¿QHG%HQH¿W3ODQ *UDWXLW\ 7KH*URXSSURYLGHVIRUJUDWXLW\IRUHPSOR\HHVDVSHUWKH3D\PHQWRI*UDWXLW\$FW (PSOR\HHVZKRDUHLQFRQWLQXRXVVHUYLFHIRUDSHULRGRI \HDUVDUHHOLJLEOHWRJUDWXLW\DWWKHUDWHRI¿IWHHQGD\VZDJHVIRUHYHU\FRPSOHWHG\HDURIVHUYLFHRUSDUWWKHUHRILQH[FHVVRIVL[PRQWKVEDVHG RQWKHUDWHRIZDJHVODVWGUDZQE\WKHHPSOR\HH 7KHPRVWUHFHQWDFWXDULDOYDOXDWLRQRISODQDVVHWVDQGWKHSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WREOLJDWLRQIRUJUDWXLW\ZDVFDUULHGRXWDVDW0DUFK 7KHSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WREOLJDWLRQVDQGWKHUHODWHGFXUUHQWVHUYLFHFRVWDQGSDVWVHUYLFHFRVWZHUHPHDVXUHGXVLQJWKH Projected Unit Credit Method. %DVHGRQWKHDFWXDULDOYDOXDWLRQREWDLQHGLQWKLVUHVSHFWWKHIROORZLQJWDEOHVHWVRXWWKHGHWDLOVRIWKHHPSOR\HHEHQH¿WREOLJDWLRQDQGWKHSODQ assets as at balance sheet date: (` in Million) Particulars March 31, 2018 March 31, 2017 'H¿QHGEHQH¿WREOLJDWLRQ 331.20 /HVV )DLUYDOXHRISODQDVVHWV 63.02 1HWGH¿QHGEHQH¿WREOLJDWLRQV 218.46 240.67 )DLUYDOXHRIWKHSODQDVVHWVDQGSUHVHQWYDOXHRIWKHGH¿QHGEHQH¿WOLDELOLWLHV 114 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 7KHDPRXQWLQFOXGHGLQWKH%DODQFHVKHHWDULVLQJIURPWKH*URXS¶VREOLJDWLRQVDQGSODQDVVHWVLQUHVSHFWRILWVGH¿QHGEHQH¿WVFKHPHVLVDVIROORZV L 0RYHPHQWLQGH¿QHGEHQH¿WREOLJDWLRQV (` in Million) Gratuity (Funded) Gratuity (Non-Funded) Leave Encashment Particulars March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 $WWKHEHJLQQLQJRIWKH\HDUSHULRG 331.20 293.20 37.19 18.67 /LDELOLWLHVDVVXPHGRQEXVLQHVVFRPELQDWLRQ 1.22 3.72 5HFRJQLVHGLQSUR¿WRUORVV Prior year charge Current service cost 30.89 37.13 0.19 2.16 0.08 1.19 Interest cost 27.20 0.76 2.60 1.31 Past service cost 8.28 5HFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH $FWXDULDO JDLQV ORVVHVRQREOLJDWLRQV (17.63) (3.88) Unextinguished employee liabilities assumes 20.08 %HQH¿WSD\DEOH %HQH¿WSDLG (1.28) (10.71) $WWKHHQGRIWKH\HDUSHULRG 281.48 331.20 21.63 9.47 0.37 5.05 ii) Movement in fair value of plan assets: (` in Million) Particulars Gratuity (Funded) March 31, 2018 March 31, 2017 $WWKHEHJLQQLQJRIWKH\HDUSHULRG 5HFRJQLVHGLQSUR¿WRUORVV Interest income Expected return on plan assets (0.71) 0.29 5HFRJQLVHGLQRWKHUFRPSUHKHQVLYHLQFRPH Employer contributions 18.83 %HQH¿WSDLG (12.68) $WWKHHQGRIWKH\HDUSHULRG 63.02 90.53 LLL ([SHQVHUHFRJQLVHGLQWKH6WDWHPHQWRISUR¿WDQGORVVDQG2WKHUFRPSUHKHQVLYH,QFRPH (` in Million) Particulars Gratuity (Funded) Gratuity (Non-Funded) Leave Encashment March 31, March 31, March 31, March 31, March 31, March 31, 2018 2017 2018 2017 2018 2017 5HFRJQLVHGLQWKH6WDWHPHQWRISUR¿WDQGORVV Current service cost 30.89 37.13 0.19 2.16 0.08 1.19 Interest expense 27.20 0.76 2.60 1.31 Past service cost 8.28 Interest income For the year 54.90 57.28 0.95 4.76 0.48 2.50 Recognised in the Other comprehensive income $FWXDULDO JDLQV ORVVHVRQREOLJDWLRQV (17.63) (3.88) $FWXDULDO JDLQV ORVVHVRQSODQDVVHWV 0.71 (0.29) For the year (31.24) 3.29 (6.45) (17.63) (3.88) (5.41) 115 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS iv) Actuarial assumptions: 7KHSULQFLSDODFWXDULDODVVXPSWLRQVXVHGIRUHVWLPDWLQJWKH*URXS¶VEHQH¿WREOLJDWLRQVDUHVHWRXWEHORZ RQDZHLJKWHGDYHUDJHEDVLV (` in Million) Particulars March 31, 2018 March 31, 2017 5DWHRILQFUHDVHLQVDODULHV SHUDQQXP SHUDQQXP Discount rate DQGSHUDQQXP DQGSHUDQQXP Employee turnover rate DW\RXQJHUDJHVUHGXFLQJWR DW\RXQJHUDJHVUHGXFLQJWR DWROGHUDJHV DWROGHUDJHV Mortality rate Indian assured life mortality Indian assured life mortality XOWLPDWH XOWLPDWH Y 6HQVLWLYLW\RIWKHGH¿QHGEHQH¿WREOLJDWLRQ (` in Million) March 31, 2018 March 31, 2017 Particulars Increase Decrease Increase Decrease Gratuity 'LVFRXQWUDWH PRYHPHQW (273.82) (319.36) 5DWHRILQFUHDVHLQVDODULHV PRYHPHQW :LWKGUDZDOUDWH PRYHPHQW (282.26) (330.87) 329.12 7KHDERYHVHQVLWLYLW\DQDO\VLVKDYHEHHQFDOFXODWHGWRVKRZWKHPRYHPHQWLQGH¿QHGEHQH¿WREOLJDWLRQLQLVRODWLRQDQGDVVXPLQJWKHUHDUHQR RWKHUFKDQJHVLQPDUNHWFRQGLWLRQVDWWKHUHSRUWLQJGDWH,QSUDFWLFHJHQHUDOO\LWGRHVQRWRFFXU:KHQZHFKDQJHRQHYDULDEOHLWDIIHFWVWRRWKHUV In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied. $OWKRXJKWKHDQDO\VLVGRHVQRWWDNHDFFRXQWRIWKHIXOOGLVWULEXWLRQRIFDVKÀRZVH[SHFWHGXQGHUWKHSODQLWGRHVSURYLGHDQDSSUR[LPDWLRQRIWKH VHQVLWLYLW\RIWKHDVVXPSWLRQVVKRZQ YL 7KHH[SHFWHGIXWXUHFDVKÀRZVDVDW0DUFKZHUHDVIROORZV (` in Million) Upto Between Between More than Particulars Total 1 year 1-2 years 2-5 years 5 years 'H¿QHGEHQH¿WREOLJDWLRQV Gratuity - Funded March 31, 2018 138.67 March 31, 2017 Gratuity - Non funded March 31, 2018 0.21 0.22 0.70 March 31, 2017 1.63 2.32 30.23 Leave encashment - Non funded March 31, 2018 0.18 0.17 March 31, 2017 1.07 1.90 116 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 38 )LQDQFLDOLQVWUXPHQWV±)DLUYDOXHVDQGULVNPDQDJHPHQW $ $FFRXQWLQJFODVVL¿FDWLRQDQGIDLUYDOXHV 7KHIROORZLQJWDEOHVKRZVWKHFDUU\LQJDPRXQWVDQGIDLUYDOXHVRI¿QDQFLDODVVHWVDQG¿QDQFLDOOLDELOLWLHVLQFOXGLQJWKHLUOHYHOVDUHSUHVHQWHG EHORZ,WGRHVQRWLQFOXGHWKHIDLUYDOXHLQIRUPDWLRQIRU¿QDQFLDODVVHWVDQG¿QDQFLDOOLDELOLWLHVQRWPHDVXUHGDWIDLUYDOXHLIWKHLUFDUU\LQJDPRXQWLV a reasonable approximation of fair value. (` in Million) Carrying Amount Fair Value As at March 31, 2018 Amortised FVTPL FVTOCI Cost Total Level 1 Level 2 Level 3 Total 1RQFXUUHQW¿QDQFLDODVVHWV Investments in equity shares 18,216.80 18,112.76 ,QYHVWPHQWVLQSUHIHUHQFHVKDUHV ERQGVGHEHQWXUHV /RDQV 2WKHUV &XUUHQW¿QDQFLDODVVHWV Investments Trade receivables Cash and cash equivalents 2WKHUEDQNEDODQFHV /RDQV 2WKHUFXUUHQW¿QDQFLDODVVHWV 0.64 18,216.80 366,667.04 384,884.48 104.68 238,906.62 18,112.76 257,124.06 1RQFXUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV 1,696.33 1,696.33 1,696.33 1,696.33 &XUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 2WKHUV 8,261.82 8,261.82 - - 526,238.82 526,238.82 - 1,696.33 - 1,696.33 (` in Million) Carrying Amount Fair Value As at March 31, 2017 Amortised FVTPL FVTOCI Cost Total Level 1 Level 2 Level 3 Total 1RQFXUUHQW¿QDQFLDODVVHWV Investments in equity shares 18,203.22 102.97 18,203.22 ,QYHVWPHQWVLQSUHIHUHQFHVKDUHV ERQGVGHEHQWXUHV /RDQV 2WKHUV &XUUHQW¿QDQFLDODVVHWV Investments Trade receivables Cash and cash equivalents 1,987.71 1,987.71 2WKHUEDQNEDODQFHV /RDQV 186,920.96 186,920.96 2WKHUFXUUHQW¿QDQFLDODVVHWV 320.63 320.63 0.64 18,202.58 368,881.64 387,084.66 102.97 146,704.11 18,100.25 164,907.33 1RQFXUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV &XUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV 27,183.31 27,183.31 Trade payables 21,918.60 21,918.60 2WKHUV 82,278.91 82,278.91 - - 487,214.96 487,214.96 - 355,834.14 - 355,834.14 117 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) Carrying Amount Fair Value As at January 1, 2016 Amortised FVTPL FVTOCI Cost Total Level 1 Level 2 Level 3 Total 1RQFXUUHQW¿QDQFLDODVVHWV Investments in equity shares 123.02 ,QYHVWPHQWVLQSUHIHUHQFHVKDUHV ERQGVGHEHQWXUHV /RDQV 117,669.21 117,669.21 117,669.21 117,669.21 2WKHUV 1,097.71 1,097.71 1,097.71 1,097.71 &XUUHQW¿QDQFLDODVVHWV Investments Trade receivables Cash and cash equivalents 13,378.69 13,378.69 2WKHUEDQNEDODQFHV /RDQV 2WKHUFXUUHQW¿QDQFLDODVVHWV 131.91 131.91 53.16 18,609.78 411,333.37 429,996.31 123.02 122,701.65 18,487.53 141,312.20 1RQFXUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV &XUUHQW¿QDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 2WKHUV 112,112.17 112,112.17 502,380.30 502,380.30 - 325,159.82 - 325,159.82 Valuation techniques used to determine fair value 6SHFL¿FYDOXDWLRQWHFKQLTXHVXVHGWRYDOXH¿QDQFLDOLQVWUXPHQWVLQFOXGH WKHIDLUYDOXHRIFHUWDLQXQOLVWHGHTXLW\VKDUHVDUHGHWHUPLQHGEDVHGRQWKHLQFRPHDSSURDFKRUWKHFRPSDUDEOHPDUNHWDSSURDFK WKHIDLUYDOXHSUHIHUHQFHVKDUHVDQGWKHUHPDLQLQJ¿QDQFLDOLQVWUXPHQWVLVGHWHUPLQHGXVLQJGLVFRXQWHGFDVKÀRZDQDO\VLVµ7KHYDOXDWLRQPRGHOFRQVLGHUV WKHSUHVHQWYDOXHRIH[SHFWHGUHFHLSWSD\PHQWGLVFRXQWHGXVLQJDSSURSULDWHGLVFRXQWLQJUDWHV 7KHLQYHVWPHQWVLQFOXGHGLQOHYHORIWKHIDLUYDOXHKLHUDUFK\KDYHEHHQYDOXHGXVLQJWKHGLVFRXQWHGFDVKÀRZWHFKQLTXHWRDUULYHDWWKHIDLUYDOXH % )LQDQFLDOULVNPDQDJHPHQW 7KH*URXSKDVH[SRVXUHWRWKHIROORZLQJULVNVDULVLQJIURP¿QDQFLDOLQVWUXPHQWV i) Credit risk; LL /LTXLGLW\ULVN DQG iii) Interest risk 5LVNPDQDJHPHQWIUDPHZRUN 7KH*URXS¶VERDUGRIGLUHFWRUVKDVRYHUDOOUHVSRQVLELOLW\IRUWKHHVWDEOLVKPHQWDQGRYHUVLJKWRIWKH*URXS¶VULVNPDQDJHPHQWIUDPHZRUN7KHERDUG RIGLUHFWRUVKDVHVWDEOLVKHGWKH5LVN0DQDJHPHQW&RPPLWWHHZKLFKLVUHVSRQVLEOHIRUGHYHORSLQJDQGPRQLWRULQJWKH*URXS¶VULVNPDQDJHPHQW policies. The committee reports regularly to the board of directors on its activities. The Group’s risk board of directors policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and FRQWUROVDQGWRPRQLWRUULVNVDQGDGKHUHQFHWROLPLWV5LVNERDUGRIGLUHFWRUVSROLFLHVDQGV\VWHPVDUHUHYLHZHGUHJXODUO\WRUHÀHFWFKDQJHVLQ market conditions and the Group’s activities. The Group, through its training and board of directors standards and procedures, aims to maintain a GLVFLSOLQHGDQGFRQVWUXFWLYHFRQWUROHQYLURQPHQWLQZKLFKDOOHPSOR\HHVXQGHUVWDQGWKHLUUROHVDQGREOLJDWLRQV 7KHERDUGRIGLUHFWRUVPRQLWRUVFRPSOLDQFHZLWKWKHFRPSDQ\¶VULVNERDUGRIGLUHFWRUVSROLFLHVDQGSURFHGXUHVDQGUHYLHZVWKHDGHTXDF\RIWKH ULVNERDUGRIGLUHFWRUVIUDPHZRUNLQUHODWLRQWRWKHULVNVIDFHGE\WKH*URXS7KHERDUGRIGLUHFWRUVLVDVVLVWHGLQLWVRYHUVLJKWUROHE\LQWHUQDODXGLW ,QWHUQDODXGLWXQGHUWDNHVERWKUHJXODUDQGDGKRFUHYLHZVRIULVNERDUGRIGLUHFWRUVFRQWUROVDQGSURFHGXUHVWKHUHVXOWVRIZKLFKDUHUHSRUWHGWR the board of directors. L &UHGLWULVN &UHGLW ULVN LV WKH ULVN RI ¿QDQFLDO ORVV WR WKH *URXS LI D FXVWRPHU RU FRXQWHUSDUW\ WR D ¿QDQFLDO LQVWUXPHQW IDLOV WR PHHW LWV FRQWUDFWXDO obligations, and arises principally from the Group’s receivables from customers and investment securities. Credit risk is managed through FUHGLWDSSURYDOVHVWDEOLVKLQJFUHGLWOLPLWVDQGFRQWLQXRXVO\PRQLWRULQJWKHFUHGLWZRUWKLQHVVRIFXVWRPHUVWRZKLFKWKH&RPSDQ\JUDQWVFUHGLW WHUPVLQWKHQRUPDOFRXUVHRIEXVLQHVV7KH*URXSHVWDEOLVKHVDQDOORZDQFHIRUGRXEWIXOGHEWVDQGLPSDLUPHQWWKDWUHSUHVHQWVLWVHVWLPDWH of incurred losses in respect of trade and other receivables and investments. a) Trade receivables 7KH*URXS¶VH[SRVXUHWRFUHGLWULVNLVLQÀXHQFHGPDLQO\E\WKHLQGLYLGXDOFKDUDFWHULVWLFVRIHDFKFXVWRPHU7KHGHPRJUDSKLFVRIWKH FXVWRPHULQFOXGLQJWKHGHIDXOWULVNRIWKHLQGXVWU\DQGFRXQWU\LQZKLFKWKHFXVWRPHURSHUDWHVDOVRKDVDQLQÀXHQFHRQFUHGLWULVN DVVHVVPHQW&UHGLWULVNLVPDQDJHGWKURXJKFUHGLWDSSURYDOVHVWDEOLVKLQJFUHGLWOLPLWVDQGFRQWLQXRXVO\PRQLWRULQJWKHFUHGLWZRUWKLQHVV RIFXVWRPHUVWRZKLFKWKH*URXSJUDQWVFUHGLWWHUPVLQWKHQRUPDOFRXUVHRIEXVLQHVV 7KH&RPSDQ\KDVDSROLF\XQGHUZKLFKHDFKQHZFXVWRPHULVDQDO\VHGLQGLYLGXDOO\IRUFUHGLWZRUWKLQHVVEHIRUHRIIHULQJFUHGLWSHULRG DQGGHOLYHU\WHUPVDQGFRQGLWLRQV7KH&RPSDQ\PDNHVVSHFL¿FSURYLVLRQVDJDLQVWVXFKWUDGHUHFHLYDEOHVZKHUHYHUUHTXLUHGDQG monitors the same at periodic intervals. 118 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 7KHIROORZLQJWDEOHSURYLGHVLQIRUPDWLRQDERXWWKHH[SRVXUHWRFUHGLWULVNIRUWUDGHUHFHLYDEOHV (` in Million) Gross carrying amount As at March As at March As at January 31, 2018 31, 2017 1, 2016 Past due not impaired 3DVWGXHGD\V 272.69 3DVWGXHGD\V 7,861.90 3DVWGXH GD\V 3DVWGXH GD\V 172.32 3DVWGXHGD\V More than 180 days 663.36 720.61 Total 7,433.68 24,439.63 30,477.79 0DQDJHPHQWKDVDQDO\VHGWKHGHEWRUVRXWVWDQGLQJDVRI0DUFKDQGFRQFOXGHGWKDWWKHKLVWRU\RIEDGGHEWVRQWKHSUR¿OH RILWVFXUUHQWGHEWRUVLVLQVLJQL¿FDQW7KHGHEWRUVZKLFKDUHRXWVWDQGLQJDVRI0DUFKKDYHEHHQJHQHUDOO\UHJXODULQPDNLQJ SD\PHQWVDQGKHQFHLWGRHVQRWH[SHFWVLJQL¿FDQWLPSDLUPHQWORVVHVRQLWVFXUUHQWSUR¿OHRIRXWVWDQGLQJGHEWRUV7KHGHEWRUVZKLFK KDYHGHIDXOWHGLQWKHSDVWDUHPRVWO\RQDFFRXQWRIDQ\OLWLJDWLRQVDQGLWVH[SHULHQFHUHJDUGLQJEDGGHEWVKDVEHHQYHU\ORZLQWKHSDVW E &DVKDQGFDVKHTXLYDOHQWVDQG2WKHUEDQNEDODQFHV The Group held cash and cash equivalents and other bank balances of ` 0LOOLRQDVDW0DUFK 0DUFK ` 0LOOLRQ-DQXDU\ `0LOOLRQ 7KHFDVKDQGFDVKHTXLYDOHQWVDUHKHOGZLWKEDQNDQG¿QDQFLDOLQVWLWXWLRQ FRXQWHUSDUWLHVZLWKJRRGFUHGLWUDWLQJV c) Investments 7KH*URXSOLPLWVLWVH[SRVXUHWRFUHGLWULVNE\JHQHUDOO\LQYHVWLQJLQOLTXLGVHFXULWLHVDQGRQO\ZLWKFRXQWHUSDUWLHVWKDWKDYHDJRRG FUHGLWUDWLQJ7KH*URXSGRHVQRWH[SHFWDQ\ORVVHVIURPQRQSHUIRUPDQFHE\WKHVHFRXQWHUSDUWLHVDQGGRHVQRWKDYHDQ\VLJQL¿FDQW FRQFHQWUDWLRQRIH[SRVXUHVWRVSHFL¿FLQGXVWU\VHFWRUVRUVSHFL¿FFRXQWU\ULVNV G 2WKHU¿QDQFLDODVVHWV 2WKHUWKDQWUDGHDQGRWKHUUHFHLYDEOHVWKH*URXSKDVQRRWKHU¿QDQFLDODVVHWVWKDWDUHSDVWGXHQRWLPSDLUHG LL /LTXLGLW\ULVN /LTXLGLW\ULVNLVWKHULVNWKDWWKH*URXSZLOOHQFRXQWHUGLI¿FXOW\LQPHHWLQJWKHREOLJDWLRQVDVVRFLDWHGZLWKLWV¿QDQFLDOOLDELOLWLHVWKDWDUHVHWWOHG E\GHOLYHULQJFDVKRUDQRWKHU¿QDQFLDODVVHW7KH*URXS¶VDSSURDFKWRPDQDJLQJOLTXLGLW\LVWRHQVXUHDVIDUDVSRVVLEOHWKDWLWZLOOKDYH VXI¿FLHQWOLTXLGLW\WRPHHWLWVOLDELOLWLHVZKHQWKH\DUHGXHXQGHUERWKQRUPDODQGVWUHVVHGFRQGLWLRQVZLWKRXWLQFXUULQJXQDFFHSWDEOHORVVHV or risking damage to the Group’s reputation. /LTXLGLW\ULVNLVPDQDJHGE\*URXSWKURXJKHIIHFWLYHIXQGPDQDJHPHQW7KH*URXSKDVREWDLQHGIXQGDQGQRQIXQGEDVHGZRUNLQJFDSLWDO OLQHVIURPYDULRXVEDQNV)XUWKHUPRUHWKH*URXSKDVDFFHVVWRIXQGVIURPGHEWPDUNHWVWKURXJKIRUHLJQFXUUHQF\ERUURZLQJVDQGRWKHUGHEW instruments. 7KHIROORZLQJDUHWKHUHPDLQLQJFRQWUDFWXDOPDWXULWLHVRI¿QDQFLDOOLDELOLWLHVDWWKHUHSRUWLQJGDWH7KHDPRXQWVDUHJURVVDQGXQGLVFRXQWHG and include estimated interest payments and exclude the impact of netting agreements. 0DWXULWLHVRI¿QDQFLDOOLDELOLWLHV 7KHDPRXQWVGLVFORVHGLQWKHWDEOHDUHWKHFRQWUDFWXDOXQGLVFRXQWHGFDVKÀRZV (` in Million) &RQWUDFWXDOFDVKÀRZV Carrying As at March 31, 2018 Upto 1 2 to 3 4 to 5 More than Amount Total Year Years Years 5 Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQ&XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV LQFOXGLQJFXUUHQWPDWXULW\RI 213.02 311.61 1,171.70 long term debt) &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 2WKHUFXUUHQWOLDELOLWLHV H[FOXGLQJFXUUHQW 8,193.88 8,193.88 8,193.88 maturity of long term debt) Total 526,238.82 526,238.82 524,542.49 213.02 311.61 1,171.70 119 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) &RQWUDFWXDOFDVKÀRZV Carrying As at March 31, 2017 Upto 1 2 to 3 4 to 5 More than Amount Total Year Years Years 5 Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQFXUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV LQFOXGLQJFXUUHQWPDWXULW\RI long term debt) &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV 27,183.31 27,183.31 27,183.31 Trade payables 21,918.60 21,918.60 21,918.60 2WKHUFXUUHQWOLDELOLWLHV H[FOXGLQJFXUUHQW maturity of long term debt) Total 487,214.96 487,214.96 122,016.70 134,605.31 159,196.21 71,396.74 (` in Million) &RQWUDFWXDOFDVKÀRZV Carrying As at January 1, 2016 Upto 1 2 to 3 4 to 5 More than Amount Total Year Years Years 5 Years 1RQGHULYDWLYH¿QDQFLDOOLDELOLWLHV 1RQFXUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV LQFOXGLQJFXUUHQWPDWXULW\RI long term debt) &XUUHQWQRQGHULYDWLYH¿QDQFLDOOLDELOLWLHV %RUURZLQJV Trade payables 2WKHUFXUUHQWOLDELOLWLHV H[FOXGLQJFXUUHQW maturity of long term debt) Total 502,380.30 502,380.30 172,658.03 49,036.08 176,406.64 104,279.55 LLL ,QWHUHVWULVN ,QWHUHVWUDWHULVNFDQEHHLWKHUIDLUYDOXHLQWHUHVWUDWHULVNRUFDVKÀRZLQWHUHVWUDWHULVN)DLUYDOXHLQWHUHVWUDWHULVNLVWKHULVNRIFKDQJHVLQIDLU YDOXHVRI¿[HGLQWHUHVWEHDULQJLQYHVWPHQWVEHFDXVHRIÀXFWXDWLRQVLQWKHLQWHUHVWUDWHV&DVKÀRZLQWHUHVWUDWHULVNLVWKHULVNWKDWWKHIXWXUH FDVKÀRZVRIÀRDWLQJLQWHUHVWEHDULQJLQYHVWPHQWVZLOOÀXFWXDWHEHFDXVHRIÀXFWXDWLRQVLQWKHLQWHUHVWUDWHV 7KH*URXSGRHVQRWDFFRXQWIRUDQ\¿[HGUDWH¿QDQFLDODVVHWVRU¿QDQFLDOOLDELOLWLHVDWIDLUYDOXHWKURXJKSUR¿WRUORVV7KHUHIRUHDFKDQJHLQ LQWHUHVWUDWHVDWWKHUHSRUWLQJGDWHZRXOGQRWDIIHFW6WDWHPHQWRISUR¿WRUORVV *URXS¶VLQWHUHVWUDWHULVNDULVHVIURPERUURZLQJV7KHLQWHUHVWUDWHSUR¿OHRIWKH*URXS¶VLQWHUHVWEHDULQJ¿QDQFLDOLQVWUXPHQWVDVUHSRUWHGWR WKHPDQDJHPHQWRIWKH*URXS¶VLVDVIROORZV (` in Million) As at March As at March As at April Borrowings 31, 2018 31, 2017 1, 2016 Variable rate borrowings Non current borrowings a) Secured Term loans from banks 1,670.33 299,306.81 7HUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV 9,863.18 9HKLFOHORDQIURPEDQNV 8.87 6.62 /RDQIURPRWKHUV Foreign currency convertible bonds 6,120.33 Deferred payment liabilities 120 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS (` in Million) As at March As at March As at April Borrowings 31, 2018 31, 2017 1, 2016 b) Unsecured /RDQIURPRWKHUV 26.00 26.00 26.00 &XUUHQWPDWXULWLHVRIORQJWHUPERUURZLQJV Current borrowings a) Secured Term loans from banks 10,766.63 7HUPORDQVIURP¿QDQFLDOLQVWLWXWLRQV 9HKLFOHORDQIURPEDQNV 2YHUGUDIWDJDLQVW¿[HGGHSRVLWV /RDQVIURPRWKHUV 13.39 13.39 Foreign currency convertible bonds Working capital loans from banks 11,961.22 b) Unsecured /RDQVIURPEDQNV 8,670.03 502,675.95 457,798.41 480,639.43 )DLUYDOXHVHQVLWLYLW\DQDO\VLVIRU¿[HGUDWHLQVWUXPHQWV $OOWKHERUURZLQJVRI*URXSDUHDWYDULDEOHLQWHUHVWUDWHV &DVKÀRZVHQVLWLYLW\DQDO\VLVIRUYDULDEOHUDWHLQVWUXPHQWV $UHDVRQDEO\SRVVLEOHFKDQJHRIEDVLVSRLQWVLQLQWHUHVWUDWHVDWWKHUHSRUWLQJGDWHZRXOGKDYHLQFUHDVHG GHFUHDVHG SUR¿WRUORVVE\ WKHDPRXQWVVKRZQEHORZ7KLVDQDO\VLVDVVXPHVWKDWDOORWKHUYDULDEOHVLQSDUWLFXODUIRUHLJQFXUUHQF\H[FKDQJHUDWHVUHPDLQFRQVWDQW,Q FDVHVZKHUHWKHUHODWHGLQWHUHVWUDWHULVNLVFDSLWDOLVHGWR¿[HGDVVHWVWKHLPSDFWLQGLFDWHGEHORZPD\DIIHFWWKH*URXS¶VLQFRPHVWDWHPHQW RYHUWKHUHPDLQLQJOLIHRIWKHUHODWHG¿[HGDVVHWV (` in Million) 3UR¿WRU /RVV EHIRUHWD[ Particulars 100bp increase 100bp decrease March 31, 2018 March 31, 2017 -DQXDU\ Note 39 Capital Management 7KH*URXSV¶VSROLF\LVWRPDLQWDLQDVWURQJFDSLWDOEDVHVRDVWRPDLQWDLQLQYHVWRUFUHGLWRUDQGPDUNHWFRQ¿GHQFHDQGWRVXVWDLQIXWXUHGHYHORSPHQWRI WKHEXVLQHVV0DQDJHPHQWPRQLWRUVWKHUHWXUQRQFDSLWDODVZHOODVWKHOHYHORIGLYLGHQGVWRRUGLQDU\VKDUHKROGHUV 7KH*URXSPRQLWRUVFDSLWDOXVLQJDUDWLRRIµDGMXVWHGQHWGHEW¶WRµDGMXVWHGHTXLW\¶)RUWKLVSXUSRVHDGMXVWHGQHWGHEWLVGH¿QHGDVWRWDOERUURZLQJV FRPSULVLQJLQWHUHVWEHDULQJORDQVDQGERUURZLQJVOHVVFDVKDQGFDVKHTXLYDOHQWVDQGEDQNGHSRVLWV$GMXVWHGHTXLW\FRPSULVHVDOOFRPSRQHQWVRI equity. 7KHHQWLW\PRQLWRUVFDSLWDOXVLQJ$GMXVWHGQHWGHEWWRHTXLW\UDWLR)RUWKLVSXUSRVHDGMXVWHGQHWGHEWLVGH¿QHGDVWRWDOGHEWOHVVFDVKDQGEDQNEDODQFHV 7KH*URXS¶VDGMXVWHGQHWGHEWWRHTXLW\UDWLRLVDVIROORZV (` in Million) As at March As at March As at January Particulars 31, 2018 31, 2017 1, 2016 1RQFXUUHQWERUURZLQJV 1,696.33 &XUUHQWERUURZLQJV 27,183.31 &XUUHQWPDWXULW\RIORQJWHUPERUURZLQJV Gross Debt 502,675.95 457,798.41 480,639.43 /HVV &DVKDQGFDVKHTXLYDOHQWV 1,987.71 13,378.69 /HVV 2WKHUEDQNEDODQFHV $GMXVWHG1HW'HEW 494,972.00 447,302.30 439,036.09 Total Equity 86,902.90 $GMXVWHG1HW'HEWWR7RWDO(TXLW\ (13.68) 15.95 5.05 121 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 40 Contingent Liabilities and Commitments (to the extent not provided for): (` in Million) As at As at March 31, 2018 March 31, 2017 Commitments : Estimated amount of contract remaining to be executed on capital account and not 745.49 provided for (net of advances) Contingent Liabilities not provided for: i) /HWWHUVRI*XDUDQWHHV 31,819.28 ii) /HWWHUVRI&UHGLWRSHQHG LQFOXGLQJ6WDQGE\/HWWHUVRI&UHGLWDQG/HWWHURI&RPIRUW 45.31 iii) &ODLPVDJDLQVWWKH&RPSDQ\QRWDFNQRZOHGJHGDVGHEWV a) Custom Duty demands and penalties under dispute 260.65 [Amount paid under protest ` 0.17 Million (As at March 31, 2017 ` 0.17 Million)] b) Income Tax demands under dispute 3,170.60 3,202.00 [Amount paid under protest ` 17.86 Million (As at March 31, 2017 ` 1.60 Million)] c) Excise Duty and Service Tax demands and penalties under dispute 2,663.83 [Amount paid under protest `0LOOLRQ $VDW0DUFK`0LOOLRQ @ d) Sales Tax demands under dispute 484.63 [Amount paid under protest ` 76.79 Million (As at March 31, 2017 `0LOOLRQ @ e) 2WKHUV 4,505.14 [Amount paid under protest `0LOOLRQ $VDW0DUFK`0LOOLRQ @ f) 6KRZ&DXVH1RWLFHV 6&1V KDYHEHHQVHUYHGRQWKH2SHUDWRURIWKH5DYYD2LO *DV)LHOG-RLQW9HQWXUH 5DYYD-9 IRUQRQSD\PHQW RI6HUYLFH7D[DQG(GXFDWLRQDO&HVVRQYDULRXVVHUYLFHVIRUWKHSHULRG-XO\WRVW0DUFK7KHDPRXQWLQYROYHGUHODWLQJWR 5DYYD%ORFNLV` 263.72 Million (As at March 31, 2017 `0LOOLRQ 7KH2SHUDWRULVFRQWHVWLQJWKH6&1VGHPDQGVDQGKDV¿OHG DSSHDOEHIRUH&(67$7%DQJDORUHDQGDOVRZULWSHWLWLRQEHIRUH+RQ EOH+LJK&RXUWRI0DGUDVFKDOOHQJLQJVHUYLFHWD[GHPDQGVRQVRPH of the services and believes that its position is likely to be upheld. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may result has been made in the accounts as the same is subject to agreement by the members RIWKH-RLQW9HQWXUH6KRXOGLWXOWLPDWHO\EHFRPHSD\DEOHWKH&RPSDQ\¶VVKDUHDVSHUWKHSDUWLFLSDWLQJLQWHUHVWZRXOGEHXSWR` Million (As at March 31, 2017 ` 0LOOLRQ g) Disputed Income Tax demand amounting to ` Nil (As at March 31, 2017 ` 0LOOLRQ LQUHVSHFWRIFHUWDLQSD\PHQWVPDGHE\5DYYD 2LO *DV)LHOG-RLQW9HQWXUHLVFXUUHQWO\SHQGLQJEHIRUHWKH+RQ EOH+LJK&RXUWRI0DGUDV7KHXOWLPDWHRXWFRPHRIWKHPDWWHUFDQQRW presently be determined and no provision for any liability that may result has been made as the same is subject to agreement by the PHPEHUVRIWKH-RLQW9HQWXUH6KRXOGLWXOWLPDWHO\EHFRPHSD\DEOHWKH&RPSDQ\ VVKDUHDVSHUWKHSDUWLFLSDWLQJLQWHUHVWZRXOGEHXSWR ` Nil (As at March 31, 2017 `0LOOLRQ Note 41 7KHUHDUHFHUWDLQGLVSXWHVZLWKWKH*RYHUQPHQWRI,QGLD ³*2,´ ZLWKUHVSHFWWRWKH3URGXFWLRQ6KDULQJ&RQWUDFWGDWHG2FWREHU ´5DYYD 36&´ SHUWDLQLQJWR5DYYD2LO *DV)LHOGZKLFKZHUHUHIHUUHGWRPRUHWKDQRQHLQWHUQDWLRQDODUELWUDWLRQIRUUHVROXWLRQ7KHUHVSHFWLYH,QWHUQDWLRQDO $UELWUDO7ULEXQDOVKDYHLVVXHGWKHLUUHVSHFWLYH$ZDUGVIURPWLPHWRWLPHVXEVWDQWLDOO\LQIDYRXURIWKH&RPSDQ\+RZHYHUWKH*2,KDVSUHIHUUHGWR FKDOOHQJHIHZRIWKH$ZDUGVLQYDULRXV&RXUWVLQ,QGLDDQGRYHUVHDVEXWKDVQRWVXFFHHGHGVRIDULQDQ\RIWKH&RXUWV3HQGLQJ¿QDOUHVROXWLRQRI WKHGLVSXWHVFHUWDLQDPRXQWVKDYHEHHQH[FHVVUHFRYHUHGGHGXFWHGRUVKRUWSDLGE\WKH*2,DQGRULWV1RPLQHHVZKLFKKDYHEHHQFKDOOHQJHG E\WKH&RPSDQ\DQGWKH&RPSDQ\LVVHHNLQJUHFRYHU\RIDPRXQWVH[FHVVLYHO\UHFRYHUHGGHGXFWHGRUVKRUWSDLGE\WKH*2,DQGRULWV1RPLQHHV %DVHGRQOHJDODGYLFHWKH&RPSDQ\EHOLHYHVWKDWLWVFRQWHQWLRQVZLOOEHXSKHOG$Q\IXUWKHUVXPUHTXLUHGWREHSDLGE\WKH&RPSDQ\RUUHFRYHUDEOH E\WKH&RPSDQ\LQUHVSHFWRIDQ\RIWKHVHGLVSXWHVLQDFFRUGDQFHZLWKWKHGHWHUPLQDWLRQRIWKHDPRXQWE\WKH+RQ¶EOH$UELWUDO7ULEXQDOUHOHYDQW FRXUWVLQWKLVUHJDUGVKDOOEHDFFRXQWHGIRURQWKH¿QDORXWFRPHLQWKRVHPDWWHUV Note 42 7KH3DUHQW&RPSDQ\DORQJZLWKWKHVXEVLGLDU\(OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG ('6/ 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 97/ DQG RWKHUHQWLWLHV FROOHFWLYHO\UHIHUUHGWRDVµ2EOLJRUV¶RULQGLYLGXDOO\DVµ%RUURZHU¶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µ2EOLJRU$JHQW¶7KH5XSHH7HUP /RDQVKDYHWREHXWLOLVHGIRUWKHSXUSRVHPHQWLRQHGLQWKH)DFLOLW\$JUHHPHQWZKLFKLVPDLQO\IRUUH¿QDQFLQJRIH[LVWLQJ5XSHH7HUP/RDQVRIWKH 2EOLJRUV$FFRUGLQJO\WKH5XSHH7HUP/RDQVZHUHDOORFDWHGE\WKH&RPSDQ\WRUHVSHFWLYH2EOLJRUVEDVHGRQWKHLURXWVWDQGLQJDPRXQWDVRQ 'HFHPEHU7KHOHQGHUVH[FHSW,'%,%DQN/LPLWHGKDYHQRWDOORFDWHGWKHORDQVWRUHVSHFWLYHREOLJRUVWLOOGDWH$VWKH3DUHQW&RPSDQ\ ('6/DQG97/DUHFRREOLJRUVWKH\DUHFRQWLQJHQWO\OLDEOHLQUHVSHFWRIWKHERUURZLQJVRIRWKHU2EOLJRUV%RUURZHUVWRWKHH[WHQWRIRXWVWDQGLQJ EDODQFHRI5XSHH7HUP/RDQVDVRQ0DUFKRI`0LOOLRQ $VDW0DUFK`0LOOLRQ 122 Note 43 RI,QGLDLQ,$1RRILQ:ULW3HWLWLRQ &LYLO 1RRI ,QWHVD 6DQSDROR 6S$ DQ ,WDOLDQ EDQN KDG LQLWLDWHG ZLQGLQJ XS 97/ LQ LWV UHVSRQVH WR WKH VDLG VKRZ FDXVH QRWLFH KDV VXEPLWWHG SURFHHGLQJVDJDLQVWWKH3DUHQW&RPSDQ\RQWKHEDVLVRIµ3DWURQ WKDW 97/ LV QRW OLDEOH WR PDNH SD\PHQW RI WKH UHVHUYH SULFH RI ` DJH/HWWHU¶LVVXHGE\WKH&RPSDQ\WRWKHVDLG,WDOLDQEDQNLQ-XQH 0LOOLRQDQGLQWHUHVWRQWKLVDPRXQWDVSHUWKHGLUHFWLRQRI IRU¿QDQFLDODVVLVWDQFHJLYHQWRWKHWKHQRQHOHYHOVWHSGRZQ WKH+RQ¶EOH6XSUHPH&RXUWDQGWKDWWKHVDLGVKRZFDXVHQRWLFHLV VXEVLGLDU\0V9'&7HFKQRORJLHV6S$DQ,WDOLDQGHIXQFWFRP QRW VXVWDLQDEOH RQ IDFWV DQG LQ ODZ IRU WKH UHDVRQV JLYHQ WKHUHLQ SDQ\ DFTXLUHG E\ DQRWKHU VXEVLGLDU\ RI WKH &RPSDQ\ 0V (DJOH 7KHVDLGGHPDQGDORQJZLWKLQWHUHVWKDVEHHQFKDOOHQJHGEHIRUHWKH &RUSRUDWLRQ/LPLWHGUHJLVWHUHGLQ&D\PDQ,VODQG6LQJOHMXGJHYLGH Hon’ble TDSAT and the demand has been stayed. MXGJHPHQW GDWHG 'HFHPEHU SDVVHG D FRQGLWLRQDO RUGHU )XUWKHU97/KDVUHFHLYHGUHYLVHGQRWLFHGDWHG)HEUXDU\ RIZLQGLQJXSRIWKH&RPSDQ\RQLWVIDLOXUHWRGHSRVLWLQFRXUWWKH ` from the Department of Telecommunications (DoT) (Access Service amount of 0LOOLRQHTXLYDOHQWRI(XUR0LOOLRQZKLFK Division), Ministry of Communications & IT for ` 0LOOLRQ ZDVFRQ¿UPHGE\WKHGLYLVLRQEHQFKRIWKH+LJK&RXUWRI-XGLFDWXUH LQFOXGLQJLQWHUHVW ZLWKUHYLVHGUHVHUYHSULFHRI`0LOOLRQ DW%RPED\RQ-XO\ Note 46 The Company had challenged the order of Bombay High Court by ZD\ RI 6SHFLDO /HDYH 3HWLWLRQ µ6/3¶ LQ WKH 6XSUHPH &RXUW 7KH 7KH 'R7 KDG LVVXHG GHPDQG QRWLFHV IRU /LTXLGDWHG 'DPDJHV ` &RPSDQ\KDGGHQLHGLWVOLDELOLW\RXWRIWKHVDLGµ3DWURQDJH/HWWHU¶ aggregating to 0LOOLRQIRURXWRIWKHFLUFOHV DOOWKH 7KH&RPSDQ\SHQGLQJWKH¿QDOGLVSRVDORI6/3DJUHHGWRFUHDWH FLUFOHVH[FHSW'HOKL DOORWWHGWR97/RQDFFRXQWRIGHOD\LQPHHWLQJ OLHQRQ)L[HG'HSRVLW5HFHLSWVRI` 1,363.82 Million and ` UROORXWREOLJDWLRQVDVVWLSXODWHGLQWKH8QL¿HG$FFHVV6HUYLFH 0LOOLRQ LQ IDYRXU RI WKH 5HJLVWUDU RI 6XSUHPH &RXUW 7KH +RQ¶EOH /LFHQVH 8$6/ VLQFHTXDVKHGYLGHMXGJHPHQWGDWHG)HEUXDU\ Supreme Court had stayed the impugned order of the Bombay High 2012 of Hon’ble Supreme Court). Against these demand notices, Court and directed to issue notice for further hearing of the matter. 97/KDVSDLGDWRWDOVXPRI` 0LOOLRQRXWRIZKLFK97/KDV ` 7KH +RQ¶EOH 6XSUHPH &RXUW KDG DOVR DGPLWWHG 6/3 ¿OHG E\ WKH charged 0LOOLRQ WR WKH 6WDWHPHQW RI 3UR¿W DQG /RVV IRU &RPSDQ\DQG¿QDOKHDULQJZDVSHQGLQJ the year ended 31st December, 2011 and the remaining amount of ` 0LOOLRQ KDV EHHQ VKRZQ XQGHU /RQJ7HUP/RDQV DQG Intesa Sanpaolo S.p.A. had also obtained exparte decree against $GYDQFHVDVWKHVDPHDUHGLVSXWHGDQGSDLGµXQGHUSURWHVW¶ the Company from Turin Court of Italy and on the basis of said GHFUHH,QWHVD6DQSDROR6S$KDG¿OHGVXLWEHDULQJ1R $ 97/ FKDOOHQJHG WKHVH GHPDQG QRWLFHV EHIRUH WKH +RQ¶EOH in Bombay High Court for obtaining decree against the Company. 7HOHFRP 'LVSXWH 6HWWOHPHQW$SSHOODWH 7ULEXQDO µ7'6$7¶ LQ 7KH&RPSDQ\KDGDSSHDUHGLQWKHPDWWHUDQGZDVFRQWHVWLQJWKH respect of 10 circles (i.e. Andhra Pradesh, Assam, Haryana, said exparte decree on merit. While the aforesaid suits and litigation -DPPX .DVKPLU .DUQDWDND .RONDWD 0DGK\D 3UDGHVK ZHUH LQ SURJUHVV WKH &RPSDQ\ DQG ,QWHVD VHWWOHG WKH PDWWHU E\ North East, Uttar Pradesh – East and West Bengal) seeking ¿OLQJWKH&RQVHQW7HUPVEHIRUHWKH+RQ¶EOH6XSUHPH&RXUWDW(XUR interim stay and requesting for setting aside the impunged 21.00 Million equivalent to ` 0LOOLRQ$V SHU WKH &RQVHQW demand, inter alia on the ground that (1) there has been a Terms the Company has paid ` 0LOOLRQ WRZDUGV IXOO DQG GHOD\ LQ WKH DOORFDWLRQ RI VWDUWXS VSHFWUXP GHOD\ LQ ¿QDOUHSD\PHQWRISULQFLSDOVXPDQG,QWHVDZDLYHGRIIDOOLWVRWKHU 6$&)$FOHDUDQFHZKLFKVKRXOGKDYHEHHQFDOFXODWHGRQWKH FODLPVLQFOXGLQJLQWHUHVWGXHRQORDQDYDLOHGE\9'&7HFKQRORJLHV actual maximum delay and not on the average delay; and 6S$LQIXOODQG¿QDOVHWWOHPHQWDQGDOOWKHSHQGLQJVXLWVSHWLWLRQV GHOD\LQPHHWLQJUROORXWREOLJDWLRQVZDVRQDFFRXQW DUH ZLWKGUDZQ E\ ERWK WKH SDUWLHV )XUWKHU DOO ULJKWV LQWHUHVW DQG RILQWURGXFWLRQE\WKH'R7RIQHZDQGRQHURXVFRQGLWLRQVLQ FODLPVDJDLQVW9'&7HFKQRORJLHV6S$KDYHEHHQDVVLJQHGDQG WKH OLFHQVH DJUHHPHQW HJ /,7HVWLQJVHFXULW\ FOHDUDQFH RI WUDQVIHUUHGWRWKH&RPSDQ\+RZHYHUFRQVLGHULQJWKDWWKHVDLG9'& equipment, etc.). Technologies S.p.A. is defunct and under liquidation, said amount 7KH+RQ¶EOH7'6$7YLGHLWVRUGHUDQGMXGJPHQWGDWHG-DQXDU\ paid on settlement is charged to revenue as exceptional items. ZKHUHE\LWKDVVHWDVLGHWKHGHPDQGVRI'R7LQUH Note 44 spect of 10 circles and directed DoT to give opportunity to the licensee before raising fresh demands for liquidated damages. 7KH 'LUHFWRUDWH RI 5HYHQXH ,QWHOOLJHQFH 0XPEDL =RQDO 8QLW The Hon’ble TDSAT, vide its said judgment has also directed µ'5,¶ KDV LVVXHG 6KRZ &DXVH 1RWLFH V µ6&1¶ GDWHG WK DoT to refund the amount of `0LOOLRQSDLGE\97/DV 6HSWHPEHUDQGWK'HFHPEHUWRWKH3DUHQW&RPSDQ\ OLTXLGDWHG GDPDJHV LQ UHVSHFW RI FLUFOHV DORQJ ZLWK LQ FRQQHFWLRQ ZLWK LPSRUW RI &RORXU 3LFWXUH 7XEHV µ&37V¶ E\ WKH LQWHUHVWDQG97/KDVEHHQGLUHFWHGWRGHSRVLWEDQNJXDUDQWHHV &RPSDQ\DQGRWKHUFRQFHUQV9LGH6&1VWKH&RPSDQ\KDVEHHQ for the amount of liquidated damages originally demanded. DVNHGWRH[SODLQDVWRZK\WKHGHFODUHGYDOXHRI&37VLPSRUWHG VKRXOG QRW EH UHMHFWHG DQG UHGHWHUPLQHG DQG ZK\ WKH DPRXQW RI % 97/KDVDOVRFKDOOHQJHGEHIRUHWKH+RQ¶EOH7'6$7WKHFODLPRI DQWLGXPSLQJGXW\RI`0LOOLRQDQGSHQDOW\WKHUHRQVKRXOG /LTXLGDWHG'DPDJHVLQUHVSHFWRIFLUFOHV LH%LKDU*XMDUDW not be recovered under the extended period under the provisions of .HUDOD 2ULVVD 5DMDVWKDQ7DPLO1DGX 8WWDU 3UDGHVK:HVW the Customs Act, 1962. seeking interim stay and setting aside the demand, inter alia on the ground that (1) there has been a delay in the allocation ,Q RUGHU WR EX\ SHDFH WKH &RPSDQ\ ¿OHG DSSOLFDWLRQ ZLWK WKH RI VWDUWXS VSHFWUXP GHOD\ LQ 6$&)$ FOHDUDQFH VKRXOG $GMXGLFDWLRQ $XWKRULW\ ZKR YLGH RUGHU GDWHG WK $SULO have been calculated on the actual maximum delay and not determined that the declared value of the Company is liable to be RQWKHDYHUDJHGHOD\ DQG GHOD\LQPHHWLQJUROORXW UHMHFWHG DQG UHGHWHUPLQHG XQGHU &XVWRPV 9DOXDWLRQ 5XOHV UHDG REOLJDWLRQVZDVRQDFFRXQWRILQWURGXFWLRQE\WKH'R7RIQHZ ZLWK6HFWLRQRIWKH&XVWRPV$FW DQGWKH&RPSDQ\LVOLDEOH ` DQG RQHURXV FRQGLWLRQV LQ WKH OLFHQVH DJUHHPHQW HJ /, WR SD\PHQW RI DQWLGXPSLQJ GXW\ DPRXQWLQJ WR 0LOOLRQ Testing, security clearance of equipment, etc.). payable on the import of CPTs and the penalty of equivalent amount DORQJZLWKLQWHUHVWWKHUHRQXQGHU6HFWLRQ$RIWKH&XVWRPV$FW 7KH+RQ¶EOH7'6$7SDVVHGDQRUGHURQ$SULOZKHUHE\ 1962. Further, the Adjudication Authority imposed a penalty of ` WKHGHPDQGVRI'R7ZHUHTXDVKHGLQUHVSHFWRIFLUFOHVLQ Million on the Company on High Sea Sales under Section 112(a) OLQHZLWKWKH7'6$7RUGHUGDWHG-DQXDU\DQGGLUHFWHG RIWKH&XVWRPV$FW 6XEVHTXHQWO\WKH&RPSDQ\KDV¿OHGDQ DoT to give opportunity to the licensee before raising fresh DSSHDO DJDLQVW WKH 2UGHU SDVVHG E\$GMXGLFDWLRQ$XWKRULW\ EHIRUH demands for liquidated damages. The Hon’ble TDSAT, vide its The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) said judgment has also directed DoT to refund the amount of ` and the same is pending before the said CESTAT. The Company has 0LOOLRQSDLGE\97/DVOLTXLGDWHGGDPDJHVLQUHVSHFWRI EHHQDGYLVHGE\LWVFRXQVHOVWKDWWKH2UGHUSDVVHGE\$GMXGLFDWLRQ FLUFOHVDORQJZLWKLQWHUHVWDQG97/KDVEHHQGLUHFWHGWR $XWKRULW\LVXQWHQDEOHLQWKHFRXUWRIODZV+HQFHQRSURYLVLRQKDV deposit bank guarantees for the amount of liquidated damages EHHQFRQVLGHUHGQHFHVVDU\LQWKH¿QDQFLDOVWDWHPHQWV originally demanded. Note 45 7KHRUGHURIWKH+RQ¶EOH7'6$7GDWHG-DQXDU\KDV been challenged by the DoT before the Hon’ble Supreme 9LGHRFRQ 7HOHFRPPXQLFDWLRQV /LPLWHG µ97/¶ D VXEVLGLDU\ KDG Court and by an order dated November 23, 2012, the Hon’ble UHFHLYHGDQRWLFHGDWHG1RYHPEHUIURPWKH'HSDUWPHQW Supreme Court has admitted the appeal and directed that RI7HOHFRPPXQLFDWLRQV µ'R7¶ $FFHVV6HUYLFH'LYLVLRQ 0LQLVWU\RI WKHUHZLOOEHDQLQWHULPRUGHUVWD\LQJWKHLQWHUHVWSD\DEOHRQO\ &RPPXQLFDWLRQV ,7GLUHFWLQJLWWRVKRZFDXVHDVWRZK\WKHUHVHUYH on the principal amount, in terms of the impugned judgment of ` price of 0LOOLRQDQGLQWHUHVWRQWKLVDPRXQWDUHQRWWREH the TDSAT. UHFRYHUHGIURP97/DVSHUWKHGLUHFWLRQRI+RQ¶EOH6XSUHPH&RXUW 123 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS $IWHU WKH RUGHU RI +RQ¶EOH 7'6$7 GDWHG -DQXDU\ 97/ KDV DOVR ¿OHG SHWLWLRQ DJDLQVW 'R7 DQG 7HOHFRP 5HJXODWRU\ 97/KDVUHFHLYHGUHYLVHGOLTXLGDWHGGDPDJHGHPDQGQRWLFHV $XWKRULW\RI,QGLD µ75$,¶ EHIRUH+RQ¶EOH7'6$7VHHNLQJDZDUGRI of `0LOOLRQYLGHOHWWHUGDWHG1RYHPEHU-XQH UHVWLWXWLRQRIQHWH[SHQGLWXUHIURPLVVXDQFHRI/HWWHURI,QWHQW µ/2,¶ DQG$XJXVWXQGHUWKH8$6/LFHQVH97/ WR-DQXDU\DQGGDPDJHVRQYDULRXVFRXQWVRZLQJWRWKH has contested the demand raised by DoT and submitted its ¿QDQFLDO DQG EXVLQHVV ORVV RQ FDQFHOODWLRQ RI 8$6/ KHOG E\ 97/ UHSUHVHQWDWLRQDQGSHUVRQDOKHDULQJRYHUWKLVLVVXHLVDZDLWHG vide Hon’ble Supreme Court judgement dated February 2, 2012. & 97/KDVDOVRUHFHLYHGWKHGHPDQGQRWLFHVGDWHG)HEUXDU\ 1RWLFHKDVEHHQLVVXHGE\WKH7'6$7WR*R,DQG75$, LVVXHGE\'R7LPSRVLQJOLTXLGDWHGGDPDJHVSHUWDLQLQJ D 97/KDVHQWHUHGLQWRDJUHHPHQWGDWHG0DUFKZLWK WRWKHDOOHJHGGHOD\GHIDXOWLQFRPSOHWLRQRIQGSKDVHUROORXW %KDUWL$LUWHO /LPLWHG IRU WUDGLQJ WKH ULJKW WR XVH [ 0+] obligation of North East service area amounting to ` 70.00 spectrum allotted to it in these 6 circles at an aggregate 0LOOLRQ97/KDVFKDOOHQJHGWKHVDLGGHPDQGLQ7'6$7YLGH consideration of `0LOOLRQLQWHUPVRIWKH*XLGHOLQHV SHWLWLRQQRRIDQGDQH[SDUWHDGLQWHULPSURWHFWLRQ for Trading of Access Spectrum by Access Service Providers DJDLQVWHQFDVKPHQWRIEDQNJXDUDQWHHZDVFRQIHUUHGWR97/ GDWHG WK 2FWREHU LVVXHG E\ WKH :3& :LQJ RI WKH subject to keeping the bank guarantee to the tune of ` 32.60 Department of Telecommunications (DoT) (Spectrum Trading Million alive during the pendency of the petition and furnishing Guidelines). The said transaction has been concluded on of an undertaking to pay the unsecured amount of the entire 0D\ IROORZLQJ DOO QHFHVVDU\ DSSURYDOV DQG WKH demand raised in the event the petition fails. satisfaction of all the conditions including conditions stated in ' 97/KDVDOVRUHFHLYHGOLTXLGDWHGGDPDJHGHPDQGQRWLFHRI WKH6SHFWUXP7UDGLQJ*XLGHOLQHV7KXV97/KDVGLVFRQWLQXHG `0LOOLRQIURP'R7LQUHVSHFWRIQRQIXO¿OPHQWRIQG the operations of GSM services (discontinued operations) 3KDVH DQG UG 3KDVH UROORXW REOLJDWLRQ XQGHU WKH 8/ $6 ZLWK HIIHFW IURP 0D\ 97/ LV FDUU\LQJ RQ WKH OLFHQVH IRU %LKDU 8WWDU 3UDGHVK (DVW DQG 8WWDU 3UDGHVK EXVLQHVVRSHUDWLRQVLQWKH1DWLRQDO/RQJ'LVWDQFH 1/' DQG :HVWVHUYLFHDUHDV97/KDVFRQWHVWHGWKHGHPDQGUDLVHGE\ ,QWHUQDWLRQDO/RQJ'LVWDQFH ,/' EXVLQHVV DoT and submitted its representation and personal hearing b) The Extraordinary Item of ` 0LOOLRQLQWKHSUHYLRXV RYHUWKLVLVVXHLVDZDLWHG period ended March 31, 2017 represents the aggregate FRQVLGHUDWLRQ IRU WUDGLQJ RI ULJKW WR XVH [ 0+] 6SHFWUXP 7KH ¿QDO GHPDQGV SD\DEOH E\ 97/ LI DQ\ LV WKHUHIRUH ` unascertainable. DOORFDWHGWR97/RI 0LOOLRQQHWRIWKHZULWWHQGRZQ value of the spectrum of `0LOOLRQZKLFKKDVEHHQ Note 47 disposed off. Infrastructure provider companies, ATC Telecom Infrastructure Note 49 3ULYDWH /LPLWHG IRUPHUO\ 9,20 1HWZRUNV /LPLWHG 7RZHU 9LVLRQ ,QGLD 3ULYDWH /LPLWHG $7& 7HOHFRP 7RZHU &RUSRUDWLRQ 3ULYDWH 'LVFRQWLQXHG2SHUDWLRQV /LPLWHG ,QGXV 7RZHUV /LPLWHG $VFHQG 7HOHFRP ,QIUDVWUXFWXUH D 97/KDVHQWHUHGLQWRDJUHHPHQWGDWHG0DUFKZLWK 3ULYDWH/LPLWHG%KDUWL,QIUDWHO/LPLWHG*7/,QIUDVWUXFWXUH/LPLWHG %KDUWL$LUWHO /LPLWHG IRU WUDGLQJ WKH ULJKW WR XVH [ 0+] &KHQQDL 1HWZRUN ,QIUDVWUXFWXUH /LPLWHG DQG 5HOLDQFH ,QIUDWHO spectrum allotted to it in these 6 circles at an aggregate /LPLWHG KDYH ¿OHG SHWLWLRQ LQ 'HOKL +LJK &RXUW DJDLQVW 97/ IRU FRQVLGHUDWLRQ RI 5V 0LOOLRQ LQ WHUPV RI WKH FODLPLQJ DPRXQW WRZDUGV LQIUDVWUXFWXUH SURYLGHU IHHV SRZHU DQG Guidelines for Trading of Access Spectrum by Access Service fuel dues, exit charges and interest aggregating to ` 0LOOLRQ 3URYLGHUVGDWHGWK2FWREHULVVXHGE\WKH:3&:LQJ QHWRIDPRXQWVSURYLGHGIRU $FFRUGLQJWR97/WKHVDPHDUHQRW of the Department of Telecommunications (DoT) (Spectrum SD\DEOHDQG97/LVGLVSXWLQJWKHVDPHEHFDXVHXQGHUWKHFRQWUDFW Trading Guidelines). The said transaction has been concluded 97/KDVPDGHDOOWKHSD\PHQWDQGQRWKLQJVWDQGVXQSDLG 5HOLDQFH RQ 0D\ IROORZLQJ DOO QHFHVVDU\ DSSURYDOV DQG ,QIUDWHO/LPLWHGDQG$VFHQG7HOHFRP,QIUDVWUXFWXUH3ULYDWH/LPLWHG the satisfaction of all the conditions including conditions cases has been disposed off in Delhi High Court). Aarbitration are VWDWHG LQ WKH 6SHFWUXP 7UDGLQJ *XLGHOLQHV 7KXV 97/ KDV DOVRJRLQJRQLQWKHDERYHFDVHVH[FHSW5HOLDQFH,QIUDWHO/LPLWHG discontinued the operations of GSM services (discontinued 97/KDVEHHQDGYLVHGE\WKHOHJDOFRXQVHOWKDWWKHFODLPVDUHQRW RSHUDWLRQV ZLWKHIIHFWIURP0D\97/LVFDUU\LQJRQ PDLQWDLQDEOHDQG97/KDVUHDVRQDEO\JRRGFKDQFHVRIVXFFHHGLQJ WKHEXVLQHVVRSHUDWLRQVLQWKH1DWLRQDO/RQJ'LVWDQFH 1/' LQWKHPDWWHU97/KDVDOUHDG\SURYLGHGIRUWKHDPRXQWSD\DEOHDV DQG,QWHUQDWLRQDO/RQJ'LVWDQFH ,/' EXVLQHVV per the contract and no further provision is considered necessary. E 7KH([WUDRUGLQDU\,WHPRI5V 0LOOLRQLQWKHSUHYLRXV Note 48 period ended March 31, 2017 represents the aggregate FRQVLGHUDWLRQIRUWUDGLQJRIULJKWWRXVH[0+]6SHFWUXP 97/ZDVDZDUGHGOLFHQVHVE\WKH'HSDUWPHQWRI7HOHFRPPXQLFDWLRQV DOORFDWHG WR 97/ RI 5V 0LOOLRQ QHW RI WKH ZULWWHQ µ'R7¶ WR SURYLGH 8QL¿HG$FFHVV 6HUYLFHV µ8$6¶ LQ WHOHFRP GRZQYDOXHRIWKHVSHFWUXPRI5V0LOOLRQZKLFKKDV FLUFOHV LQ ,QGLD HIIHFWLYH IURP -DQXDU\ ZKLFK ZHUH YDOLG been disposed off. IRU D SHULRG RI \HDUV 97/ ZDV DOVR DOORFDWHG VSHFWUXP LQ circles and had launched its commercial operations in 17 circles. Note 50 The Hon’ble Supreme Court of India, vide its order and judgment 'XULQJWKH\HDU97/KDVLQFXUUHGDQHWORVVRI` 0LOOLRQ GDWHG)HEUXDU\ µ-XGJPHQW¶ LQWZRVHSDUDWHZULWSHWLWLRQV resulting into accumulated losses of ` 0LOOLRQDVDW0DUFK TXDVKHGWKH8$6OLFHQVHVJUDQWHGRQRUDIWHU-DQXDU\DQG 97/KDVDOVRVKXWGRZQLWV*60VHUYLFHV7KRXJK97/ WKHVXEVHTXHQWDOORFDWLRQRIVSHFWUXPWROLFHQVHHVZKLFKLQFOXGHG KDVKXJHDFFXPXODWHGORVVHVLWVQHWZRUWKDVRQ0DUFK WKH8$6OLFHQVHVLVVXHGDQGDOORFDWLRQRIVSHFWUXPWR97/7KH LVSRVLWLYHDQGWKHPDQDJHPHQWRI97/LVFRQ¿GHQWRIFRQWLQXLQJ VDPH MXGJPHQW ZDV EDVHG RQ LQDSSURSULDWHQHVV LQ WKH FRQGXFW LWV FRPPHUFLDO RSHUDWLRQV LQ WKH 1DWLRQDO /RQJ 'LVWDQFH 1/' RI *RYHUQPHQW RI ,QGLD µ*R,¶ DQG FHUWDLQ RWKHU SDUWLHV RWKHU DQG ,QWHUQDWLRQDO /RQJ 'LVWDQFH ,/' %XVLQHVV$FFRUGLQJO\ WKH WKDQ97/ DQGWKHUHIRUH97/KDVEHHQSHQDOL]HGIRUWKHUHDVRQV ¿QDQFLDOVWDWHPHQWVRI97/KDYHEHHQSUHSDUHGRQDJRLQJFRQFHUQ DWWULEXWDEOHWRWKH*R,DQGQRW97/ basis. 7KH +RQ¶EOH 6XSUHPH &RXUW RI ,QGLD YLGH LWV -XGJPHQW KDG DOVR Note 51 directed the Central Government to grant fresh UAS licenses and &RQVHTXHQWWR97/¶VDJUHHPHQWGDWHG0DUFKZLWK%KDUWL spectrum allocation by auction. The DoT, had issued a Notice $LUWHO/LPLWHGIRUWUDGLQJWKHULJKWWRXVH[0+]VSHFWUXPDOORFDWHG LQYLWLQJ DSSOLFDWLRQV IRU DXFWLRQ RI VSHFWUXP 97/ SDUWLFLSDWHG LQ WRLWLQWKHFLUFOHV*601HWZRUN$VVHWVLQFOXGLQJ$VVHWVKHOGIRU WKH VDLG DXFWLRQ DQG ZDV DZDUGHG WKH 8QL¿HG /LFHQVHV $FFHVV Sale of ` 9,163.20 Million (As at March 31, 2017 ` 9,321.37 Million) Services) for 6 circles namely, Bihar, Gujarat, Haryana, Madhya KDVEHHQVKRZQXQGHU³&XUUHQW$VVHWV´DVµ'LVSRVDOJURXSDVVHWV 3UDGHVK8WWDU3UDGHVK (DVW DQG8WWDU3UDGHVK :HVW ZLWKHIIHFW KHOGIRU6DOH¶97/LVLQWKHSURFHVVRIDVFHUWDLQLQJWKHLPSDLUPHQW IURPWK)HEUXDU\ZKLFKDUHYDOLGIRUDSHULRGRI\HDUV ORVV LI DQ\RQ LWV ¿[HG DVVHWV LQFOXGLQJ FDSLWDO ZRUNLQSURJUHVV 97/ ZDV DOVR DOORWWHG VSHFWUXP LQ WKHVH FLUFOHV ZKLFK ZHUH 7KH UHTXLVLWH DFFRXQWLQJ HIIHFW LI DQ\ ZLOO EH JLYHQ XSRQ VXFK WUDQVIHUUHG FRQVHTXHQW WR WKH 97/¶V DJUHHPHQW GDWHG 0DUFK DVFHUWDLQPHQWGHWHUPLQDWLRQ ZLWK%KDUWL$LUWHO/LPLWHGIRUWUDGLQJWKHULJKWWRXVH[0+] spectrum. 124 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 52 Note 57 97/ KDG JLYHQ DGYDQFHV RI ` 12,860.00 Million to Quadrant 7KH3DUHQW&RPSDQ\KDVUHFHLYHG*UDQWIURP2]RQH&HOO0LQLVWU\ 7HOHYHQWXUHV /LPLWHG 47/ IRU WKH SURSRVHG DFTXLVLWLRQ RI RI (QYLURQPHQW )RUHVWV *RYHUQPHQW RI ,QGLD IRU ¿QDQFLQJ WKH LQGHIHDVLEOH5LJKWVRI8VH ,58 WKH8$6/LFHQVHRI47/LQ3XQMDE PDFKLQHU\XQGHUWKH2]RQH3URMHFW$VSHUWKHDFFRXQWLQJSROLF\ circle, subject to regulatory approvals. The same has been converted IROORZHGE\WKH&RPSDQ\WKH*UDQWUHFHLYHGIRU2]RQH3URMHFWKDV into Unsecured Zero Coupon Compulsory Convertible Debentures been treated as “deferred income” to be recognised in the Statement of face value ` HDFK &&' &RQYHUWLEOH LQWR 1RQ RI3UR¿WDQG/RVVRYHUWKHXVHIXOOLIHRIWKHDVVHWVXQGHUWKH2]RQH &XPXODWLYH 1RQ&RQYHUWLEOH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV Project. Accordingly, an amount of `0LOOLRQ 3UHYLRXVSHULRG 97/LVLQSURFHVVRIDVFHUWDLQLQJWKHIDLUYDOXHRI8QVHFXUHG=HUR `0LOOLRQ KDVEHHQDOORFDWHGWRLQFRPHDQGFUHGLWHGWRRWKHU Coupon Compulsory Convertible Debentures and its accounting QRQRSHUDWLQJLQFRPHLQSURSRUWLRQWRWKHGHSUHFLDWLRQFKDUJHGRQ LPSDFWLIDQ\ZLOOEHJLYHQXSRQVXFKIDLUYDOXDWLRQ those assets for the period. The balance deferred income has been Note 53 FDUULHGWR%DODQFH6KHHWDV*UDQWIRU2]RQH3URMHFW 7KH VXEVLGLDU\ 9LGHRFRQ 0DXULWLXV (QHUJ\ /LPLWHG 90(/ Note 58 holds investments of ` 0LOOLRQ FODVVL¿HG DV XQTXRWHG Joint Venture Disclosure: LQYHVWPHQWV LQ HTXLW\ LQVWUXPHQWV ¿QDQFLDO DVVHWV ZKLFK KDYH A. 7KH)LQDQFLDO6WDWHPHQWVUHÀHFWWKHVKDUHRIWKH*URXSLQWKHDVVHWV been recognised at cost, and have not been carried at fair value. DQGWKHOLDELOLWLHVDVZHOODVWKHLQFRPHDQGWKHH[SHQGLWXUHRI-RLQW 7KH$XGLWRUVRI90(/KDYHJLYHQGLVFODLPHURIRSLQLRQDVLWKDVQRW 9HQWXUH2SHUDWLRQVRQDOLQHE\OLQHEDVLV7KH*URXSLQFRUSRUDWHV EHHQSRVVLEOHWRHVWLPDWHWKH¿QDQFLDOHIIHFWVRIQRWFDUU\LQJWKHVH LWVVKDUHLQWKHRSHUDWLRQVRIWKH-RLQW9HQWXUHEDVHGRQVWDWHPHQWV investments at fair falue. RIDFFRXQWUHFHLYHGIURPWKH2SHUDWRU7KH*URXSKDVLQWHUPVRI Note 54 6LJQL¿FDQW$FFRXQWLQJ3ROLF\1R 7 UHFRJQLVHGDEDQGRQPHQW Exceptional items represents: costs based on the technical assessment of current costs as cost of producing properties and has provided Depletion thereon under D 3D\PHQW PDGH WRZDUGV VHWWOHPHQW RI REOLJDWLRQ XQGHU µ8QLWRI3URGXFWLRQ¶PHWKRGDVSDUWRI3URGXFLQJ3URSHUWLHVLQOLQH SDWURQDJHOHWWHUJXDUDQWHHJLYHQWR,QWHVD6DQSDROR6S$ ZLWK WKH *XLGDQFH 1RWH RQ$FFRXQWLQJ RI 2LO DQG *DV 3URGXFLQJ DQ,WDOLDQEDQNIRU¿QDQFLDODVVLVWDQFHJLYHQWRWKHWKHQRQH Activities issued by the Institute of Chartered Accountants of India. OHYHOVWHSGRZQVXEVLGLDU\DVGHWDLOHGLQ1RWH1RDERYH` 0LOOLRQ DQG B. Unincorporated Joint Ventures: b) Infructuous project expenses relating to project aborted by the D 7KH &RPSDQ\ KDV SDUWLFLSDWLQJ LQWHUHVW RI LQ 5DYYD 2LO DQG Parent Company `0LOOLRQDQGVXEVLGLDU\FRPSDQ\` *DV)LHOG-RLQW9HQWXUH -9 WKURXJKD3URGXFWLRQ6KDULQJ&RQWUDFW 81.72 Million. 36& 2WKHUPHPEHUVRIWKH-9DUH2LODQG1DWXUDO*DV&RUSRUDWLRQ /LPLWHG9HGDQWD/LPLWHG HUVWZKLOH&DLUQ,QGLD/LPLWHG DQG5DYYD Note 55 2LO 6LQJDSRUH 3WH/LPLWHG7KHSDUWLHVKDYHSXUVXDQWWRWKH36& The manufacturing activity of Glass Shell division located at HQWHUHGLQWRD-RLQW2SHUDWLQJ$JUHHPHQW9HGDQWD/LPLWHGLVWKH %KDUXFK ZKLFK PDQXIDFWXUHG SDQHOV DQG IXQQHOV XVHG LQ FRORXU 2SHUDWRU7KHRULJLQDOWHUPRIWKH5DYYD36&LVGXHWRH[SLUHRQ SLFWXUH WXEH IRU FRORXU WHOHYLVLRQ KDV EHHQ VXVSHQGHG IURP -XO\ 2FWREHU 5DYYD-9KDVVXEPLWWHG5HYLVHG'HYHORSPHQW 2017 due to poor demand of these products due to changes in 3ODQ 5)'3 WR 0LQLVWU\ RI 3HWUROHXP 1DWXUDO *DV 0231* WHFKQRORJ\IRUFRORXUWHOHYLVLRQV7KHPDQDJHPHQWLVRIWKHYLHZ 'LUHFWRUDWH*HQHUDORI+\GURFDUERQV '*+ IRU\HDUH[WHQVLRQ WKDWWKHVDLGIDFWRU\DQGIDFLOLWLHVFDQEHZLWKVRPHPRGL¿FDWLRQV SHULRG DQG LW LV QRZ XQGHU DFWLYH FRQVLGHUDWLRQ RI *RYHUQPHQW XVHGIRUSURGXFWLRQRIVRODUSDQHOJODVVVRODUOHQVHJODVV¿EUHDQG RI ,QGLD WR FRPPHUFLDOO\ PRQHWL]H WKH UHPDLQLQJ UHVRXUFHV DQG JODVVEORFNVZKLFKKDYHJRRGGHPDQGLQWKHPDUNHW,QYLHZRIWKH additional exploration potential in the Block. above, no provision for impairment has been considered necessary E 7KH-3'$%ORFNZDVVHWXSXQGHUD36&GDWHG1RYHPEHU for the assets of the glass shell division at this stage. HQWHUHGLQWREHWZHHQWKH$XWRULGDGH1DFLRQDOGR3HWUROHR Note 56 (ANP) (previously the Timor Sea Designated Authority), and the &RQWUDFWRU 3DUWLHV FRQVLVWLQJ RI 9LGHRFRQ -3'$ /LPLWHG 929/ /LPLWHG 9LGHRFRQ +\GURFDUERQ +ROGLQJV /LPLWHG WKH 9LGHRFRQ -3'$ RQH RI WKH ZKROO\ RZQHG VXEVLGLDULHV 2LOH[ subsidiary’s main activity is investing in oil and natural gas -3'$ /LPLWHG±DV2SHUDWRU%KDUDW3HWUR5HVRXUFHV-3'$ exploration assets outside India through its subsidiaries and jointly /LPLWHG DQG *63& -3'$ /LPLWHG 7KH &RQWUDFWRU 3DUWLHV KDYH controlled companies. The exploration and evaluation assets under GH¿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¿FDQW amounts on the acquisition, exploration and evaluation costs and 7KLVEORFNLVORFDWHGLQWKH7LPRU6HDEHWZHHQ$XVWUDOLDDQG7LPRU have liability on this account. At present they are not generating /HVWH9LGHRFRQ-3'$KDGRULJLQDOO\DSDUWLFLSDWLQJLQWHUHVWRI LQ WKH 36& 2LOH[ KDV IDUPHGRXW RI LWV SDUWLFLSDWLQJ revenue. The recovery of these costs is subject to success of their LQWHUHVWWR-DSDQ(QHUJ\&RUSRUDWLRQ9LGHRFRQ-3'$KDVIDUPHG exploration efforts at these locations. The conditions indicates RXW RI LWV SDUWLFLSDWLQJ LQWHUHVW WR 3DQ 3DFL¿F 3HWUROHXP RI H[LVWHQFHRIVLJQL¿FDQWXQFHUWDLQW\WKDWFRXOGOHDGVLJQL¿FDQWGRXEW $XVWUDOLDUHGXFLQJWKHVDPHWR about the continuity of the said subsidiary companies and joint venture company. The ability of these companies to continue as $IWHU WZR H[SORUDWLRQ ZHOOV DW /RUH DQG /RORWRH ZHUH GULOOHG a going concern is substantially dependent on their ability to raise XQVXFFHVVIXOO\ WKH ZRUN RQ WKH WKLUG ZHOO DW %D]DUWDWH ZDV IXQGVRUFRQWLQXRXV¿QDQFLDOVXSSRUWIURP3DUHQW&RPSDQ\WRPHHW VXVSHQGHGEHFDXVHRIDGLVSXWHRQWKH0DULWLPHERXQGDU\EHWZHHQ their operating and capital expenditure requirements. *RYHUQPHQWVRI7LPRU/HVWHDQG$XVWUDOLD7KH-RLQW9HQWXUH -9 parties have put in a formal request to Government for termination 7KH PDQDJHPHQW RI WKHVH FRPSDQLHV DUH FRQ¿GHQW RI PRELOL]LQJ RI WKH 36& ZLWKRXW SHQDOW\ DQG LQ JRRG VWDQGLQJ 7KH UHJXODWRU the necessary resources for continuing the operations of these $XWRULGDGH1DFLRQDO'R3HWUROHR7LPRU/HVWH $13 YLGHLWVOHWWHU VXEVLGLDULHVDQGWKHMRLQWYHQWXUHZLWKWKHVXSSRUWIURPWKH3DUHQW GDWHGWK0D\LQIRUPHGWKH2SHUDWRUWKDWXSRQWHUPLQDWLRQ &RPSDQ\ DQG DOVR LQ YLHZ RI WKH IDFW WKDW LQ FHUWDLQ FDVHV RI WKH-9LVOLDEOHWR$13IRUHVWLPDWHGFRVWVRIH[SORUDWLRQQRWFDUULHG FRPSDQLHVMRLQWYHQWXUHHQJDJHGLQH[SORUDWLRQDQGSURGXFWLRQRI out and the damages for breach of its local content obligation. oil and natural gas, the operators have reported major discoveries 7KH -9 ZKLOH PDNLQJ D FRXQWHU RIIHU FRQWHQGHG WKDW WKH ODFN RI ZKLFK WKH\ LQWHQG WR GHYHORS LQ DQ LQWHJUDWHG PDQQHU WR PDNH LW assurance from ANP on security of PSC tenure had constrained RSWLPDODQGPRUHHFRQRPLFDO$FFRUGLQJO\WKH¿QDQFLDOVWDWHPHQWV LWIURPIXO¿OOLQJWKH:RUN3URJUDPPHFRPPLWPHQWVDQGWKDWLWKDG have been prepared by the said subsidiaries and joint venture on a DFWXDOO\SHUIRUPHGH[FHVVH[SORUDWRU\ZRUN&XUUHQWO\QHJRWLDWLRQV going concern basis. EHWZHHQ$13DQG-9DUHXQGHUZD\WRGHWHUPLQHWKHTXDQWXPRI amount payable for an amicable settlement of the PSC termination. The ultimate outcome of the matter cannot be presently determined 125 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS and hence no provision for any liability that may result has been EDVHLQ1XQXNDQ36&EORFN-9LVORRNLQJWRPRQHWL]HWKH3DUDQJ made. Should it ultimately become payable, the subsidiary’s share GLVFRYHU\DWWKHHDUOLHVWWRHQDEOHLQWHJUDWLRQZLWKWKHGHYHORSPHQW DVSHUSDUWLFLSDWLQJLQWHUHVWZRXOGEHXSWR` 176.66 Million. RI%DGLN:HVW%DGLN¿HOGV 32' $SSUDLVDORI3DUDQJGLVFRYHU\ Considering the developments, the carrying value of this exploration KDVEHHQSODQQHGE\FDUU\LQJRXW'2%1VHLVPLFGDWDDFTXLVLWLRQ DQGHYDOXDWLRQDVVHWVDPRXQWLQJWR86'0LOOLRQ HTXLYDOHQW DORQJZLWKGULOOLQJRIWZRDSSUDLVDOZHOOVDQGRQHH[SORUDWRU\ZHOO to ` 0LOOLRQ KDVEHHQLPSDLUHGLQSUHYLRXVSHULRGHQGHG .HULV .HULVSURVSHFWLVSUR[LPDOO\ORFDWHGRQWKHÀDQNRI%XQ\X March 31, 2017. VWUXFWXUHZKLFKLVDSURGXFLQJ¿HOGDQGVKDUHWKHVDPHWUHQGZLWK Badik – West Badik – Parang structures, successful results in F 7KH RULJLQDO 1XQXNDQ 36& ZDV VLJQHG RQ 'HFHPEHU .HULVZLOOHQDEOHLWVLQWHJUDWLRQZLWKWKH%DGLN:HVW%DGLN3DUDQJ FRYHULQJDQDUHDRI VTNP7KH7HUPRIWKH36&LV development. years from the Effective Date. As per the terms of the PSC at the HQGRIWKHLQLWLDO VL[ \HDUVSHULRGRU\HDUVH[WHQVLRQWKHUHWRLI C. 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As a result Pertamina, the holding 0HDQZKLOHDVDSDUWRI$QDGDUNR¶VZRUOGZLGHFRUSRUDWHVWUDWHJ\ FRPSDQ\RIWKH2SHUDWRU3+(1&ZKLFKLVVSHDUKHDGLQJWKH*DV FRQYH\HGLW¶VGHFLVLRQWRUHVLJQDVRSHUDWRUDQGH[LW%0&RQ PDUNHWLQJ HIIRUWV KDV ZLGHQHG LWV VFRSH DQG LV ORRNLQJ IRU RWKHU 0DUFK 7KH UHPDLQLQJ SDUWQHUV %37RWDODQG ,%9 KDYH EX\HUV7KHSRWHQWLDOFDQGLGDWHVZKRH[SUHVVHGLQWHUHVWLQFOXGHGD FRQVHQWHGWRFRQWLQXHLQWKH-9DQGWKHHIIRUWVWRVHOHFWDQRSHUDWRU *RYHUQPHQWEDFNHG)HUWLOL]HUSODQWDQGWKHRWKHUDSULYDWHO\RZQHG KDVVWDUWHG(IIRUWVDUHEHLQJPDGHE\-9IRU/RQJ7HUP7HVWLQJLQ SHWURFKHPLFDOSODQWZKRKDYHLQGLFDWHGDKLJKHUJDVUHTXLUHPHQW 2018 and solution for the produced gas. ZLWKDPLQLPXPVXSSO\RI006&)'IRUDSHULRGRI\HDUV ,, 6HUJLSH &RQFHVVLRQ 6HUJLSH &RQFHVVLRQ &RQWUDFW %06($/ 7RJDLQ FRQ¿GHQFH RI WKH SRWHQWLDO EX\HUV HVSHFLDOO\ WKH SULYDWH ZDV VLJQHG LQ WKH 6L[WK 5RXQG RI %LGGLQJ FRYHULQJ DQ DUHD RI HQWLWLHV RQWKHUHVHUYH¿JXUHVRI%DGLN:HVW%DGLN)LHOG*DIIQH\ 6T.PLQWKH1RUWK(DVWHUQRIIVKRUHRI%UD]LOLDQ%DVLQDQG &OLQH $VVRFLDWHV ZDV FRQWUDFWHG WR FRQGXFW D *HRORJLFDO FRPSULVLQJ RI %ORFNV 6($/0 6($/0 6($/0 *HRSK\VLFDO DQG 5HVHUYRLU (QJLQHHULQJ VWXG\ DQG 5HVRXUFHV DQG 6($/0 3HWUROHR %UDVLOLHUR 6$ 3HWUREUDV LV WKH Assessment of the Badik and West Badik discoveries. 2SHUDWRUZLWKDQG9(%/KDVDSDUWLFLSDWLQJLQWHUHVW For enhancing the currently estimated Gas reserve base, the Parang 7KH H[SORUDWLRQ SKDVHV LQ WKH &RQFHVVLRQ KDYH EHHQ IXO¿OOHG IRU :HOODGMDFHQWWR%DGLNZDVWDNHQXSIRUH[SORUDWLRQGULOOLQJWRZDUGV DOOWKHIRXUEORFNV$13KDVDSSURYHG¿YHDSSUDLVDOSODQVLQWKLV WKHHQGRI\HDUUHVXOWLQJLQ2LODQG*DV'LVFRYHULHVWKDWIXO¿O FRQFHVVLRQZLWKYDULRXVWLPHOLQHVZKLFKKDYHZLWQHVVHGVLJQL¿FDQW the objective of augmenting the existing reserve Base in Nunukan hydrocarbon discoveries in the Barra, Farfan, Cumbe, Papangu and %ORFN 7KH -9 3DUWLHV KRSH WR IXO¿O WKH REOLJDWLRQ RI EULQJLQJ RQ 3RFR9HUGHVWUXFWXUHVZKLFKDUHDOOLQGLIIHUHQWVWDJHVRIDSSUDLVDO FRPPHUFLDO SURGXFWLRQ ZLWKLQ \HDUV RI 32' DSSURYDO E\ HYDOXDWLRQ SKDVHV DORQJ ZLWK QHLJKERXULQJ -RLQW 9HQWXUHUV phasing in the production of oil and gas in Nunukan. 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FRVWRI86'0LOOLRQDQGWKHVDPHKDVEHHQDSSURYHGE\WKH F /LEHUW\ 9LGHRFRQ *HQHUDO ,QVXUDQFH &RPSDQ\ /LPLWHG ³/LEHUW\ -9 7KH (:7 SURSRVHG IRU PRQWKV IURP 6HSWHPEHU WR 9LGHRFRQ´ ZDV D -RLQW 9HQWXUH SURPRWHG E\ 9LGHRFRQ ,QGXVWULHV )HEUXDU\ ZLOOFRQ¿UPUHVHUYRLUSDUDPHWHUVDQGZLOOSURGXFH /LPLWHG DQG /LEHUW\ 0XWXDO ,QVXUDQFH *URXS WR FDUU\ QRQOLIH DWDUHVWULFWHGUDWHRIEDUUHOVSHUGD\IURPWKH)DUIDQ:HOO LQVXUDQFH EXVLQHVV LQ ,QGLD 7KH &RPSDQ\ ZDV KROGLQJ DVKLJKHUOHYHOVLQYROYHGXQDFFHSWDEOHJDVÀDULQJDQGWKHUHVHUYRLU RIWKHHTXLW\VKDUHFDSLWDORI/LEHUW\9LGHRFRQDQGUHPDLQLQJZDV SUHVVXUHV PRQLWRUHG E\ WKH &$7V 6\VWHP IRU )DUIDQ$'5 :HOO KHOGE\/LEHUW\0XWXDO,QVXUDQFH*URXS2Q0DUFKWKH 2SHUDWRU KDV FRQ¿UPHG WKDW DOO DFWLYLWLHV XQGHUO\LQJ WKH (:7 DUH proceeding as per schedule, including the Environmental Clearance &RPSDQ\ VROG LWV HQWLUH HTXLW\ VWDNH LQ /LEHUW\ 9LGHRFRQ DQG by IBAMA. DFFRUGLQJO\ WKH &RPSDQ\ FHDVHG EH ,QGLDQ 3URPRWHU RI /LEHUW\ 9LGHRFRQ All activities leading to successful start of the Extended Well Test (EWT) in Farfan Field are expected to start as planned. Processes G 7KH ¿QDQFLDO LQWHUHVW RI WKH *URXS LQ WKH MRLQWO\ FRQWUROOHG IRU SURFXUHPHQW RI ORQJ OHDG LWHPV IRU WKH (:7 LV XQGHUZD\ LQFRUSRUDWHG HQWLWLHV EDVHG RQ ¿QDQFLDO VWDWHPHQW UHFHLYHG IURP Integrated development of all discoveries around Farfan and Barra WKHVH-RLQW9HQWXUHHQWLWLHVDUHDVXQGHU GLVFRYHULHVDUHEHLQJZRUNHGRXW,QDGGLWLRQWRURXWLQHODERUDWRU\ (` in Million) VWXGLHV RQ WKH ZHOO VDPSOH FXWWLQJV DQG ÀXLG VDPSOHV FROOHFWHG LQWHUSUHWDWLRQRIQHZ%URDGEDQG'VHLVPLFGDWDVHWVDQGUHVHUYRLU Group's share in March 31, 2018 March 31, 2017 modelling studies have been taken up. Assets ,,, 3RWLJXDU &RQFHVVLRQ 3RWLJXDU &RQFHVVLRQ &RQWUDFW 3270 /LDELOLWLHV 21,803.77 ZDVVLJQHGRQ-DQXDU\LQWKH6HYHQWK5RXQGRI%LGGLQJ FRPSULVLQJRI%ORFNV32703270DQGFRYHUVDQDUHD Income RIVTNP3HWUREUDVLVWKH2SHUDWRUZLWKDQG9(%/KDV Expenses DSDUWLFLSDWLQJLQWHUHVWLQWKH3RWLJXDU&RQFHVVLRQ D. The HVWLPDWHG DPRXQW RI FRPPLWPHQW RI WKH *URXS WRZDUGV :HOO $UDUDXQD WDUJHWHG WR 0HWHUV 7' ZDV GULOOHG ZKLFK FRQWULEXWLRQ LQ YDULRXV -RLQW 9HQWXUHV IRU QH[W \HDU EDVHG RQ GLVFRYHUHG WKLQ RLO EHDULQJ VDQGV LQ $OELDQ&HQRPDQLDQ DJH PLQLPXPZRUNSURJUDPLV`0LOOLRQ $VDW0DUFK DQG 'LVFRYHU\$VVHVVPHQW 3ODQ 3$' ZDV DSSURYHG E\$13 WR `0LOOLRQ IXUWKHUDSSUDLVHWKH$UDUDXQDGLVFRYHU\LQ%ORFN3270RIWKH FRQFHVVLRQZLWKWKHGULOOLQJRID¿UPZHOODIWHULQWHUSUHWDWLRQRIWKH 127 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 59 Note 60 Related Party Disclosures: The effect of acquisition and disposal of subsidiaries during the SHULRGRQWKH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVLVDVIROORZV $VUHTXLUHGXQGHU$FFRXQWLQJ6WDQGDUG $6 RQ³5HODWHG3DUW\ 'LVFORVXUHV´ WKH GLVFORVXUH RI WUDQVDFWLRQ ZLWK UHODWHG SDUWLHV DV (` in Million) GH¿QHGLQWKH$FFRXQWLQJ6WDQGDUGDUHJLYHQEHORZ Name of the Company Effect on Net Assets D /LVWRI5HODWHG3DUWLHVZKHUHFRQWUROH[LVWVDQGUHODWHGSDUWLHVZLWK Consolidated As at March ZKRPWUDQVDFWLRQVKDYHWDNHQSODFHDQGUHODWLRQVKLS 3UR¿W /RVV 31, 2018 i) Associates: Disposal: 5DGLXP$SSOLDQFHV3ULYDWH/LPLWHG$VVRFLDWH+ROGLQJ &KKDWWLVJDUK3RZHU9HQWXUHV 0.62 8QLW\3RZHU3ULYDWH/LPLWHG$VVRFLDWHRI$SSOLHG(QHUJ\ 3ULYDWH/LPLWHG 3ULYDWH/LPLWHG+ROGLQJ XSWR0D\ /LEHUW\9LGHRFRQ*HQHUDO 602.30 9,63///3+ROGLQJ ZHI-DQXDU\ ,QVXUDQFH&RPSDQ\/LPLWHG LL -RLQWYHQWXUHV 3UR¿FLHQW(QHUJ\3ULYDWH /LPLWHG ,%9%UDVLO3HWUROHR/LPLWDGD $SSOLHG(QHUJ\3ULYDWH/LPLWHG} /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG XSWR 0DUFK 8QLW\3RZHU3ULYDWH/LPLWHG 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUHV3ULYDWH/LPLWHG Note 61 iii) Key Management Personnel: 2SHUDWLQJ/HDVH 0U9HQXJRSDO1'KRRW0DQDJLQJ'LUHFWRU &(2 L /HDVH SD\PHQWV XQGHU FDQFHOODEOH OHDVHV DUH UHFRJQLVHG DV DQ 0U $ . *DQJZDO 'LUHFWRU 9LGHRFRQ +\GURFDUERQ H[SHQVHVLQWKH&RQVROLGDWHG6WDWHPHQWRI3UR¿WDQG/RVV +ROGLQJV/LPLWHG LL 7KH PD[LPXP REOLJDWLRQ RQ ORQJWHUP QRQFDQFHOODEOH RSHUDWLQJ leases entered on or after April 1, 2001 payable as per the rentals 0U 3UDGHHS 3DOLZDO &KLHI ([HFXWLYH 2I¿FHU 9LGHRFRQ 7HOHFRPPXQLFDWLRQV/LPLWHGZHI$SULO VWDWHGLQUHVSHFWLYHDJUHHPHQWVDUHDVIROORZV 0U6XQLO7DQGRQ6HQLRU9LFH3UHVLGHQW (` in Million) 0U0DQGDU-RVKL&RPSDQ\6HFUHWDU\ As at As at 0U 1DUHQGUD -RVKL &KLHI )LQDQFLDO 2I¿FHU 9LGHRFRQ Minimum Lease Payments March 31, March 31, 7HOHFRPPXQLFDWLRQV/LPLWHGZHI$SULO 2018 2017 0U & $ 1DJDUNDU &RPSDQ\ 6HFUHWDU\ 9LGHRFRQ 7HOHFRPPXQLFDWLRQV/LPLWHG Not later than 1 year - E 7UDQVDFWLRQVRXWVWDQGLQJEDODQFHVZLWK5HODWHG3DUWLHV /DWHUWKDQ\HDUDQGQRWODWHUWKDQ - 110.98 \HDUV 7KH &RPSDQ\ KDV HQWHUHG LQWR WUDQVDFWLRQV ZLWK FHUWDLQ UHODWHG SDUWLHVGXULQJWKHSHULRGDVOLVWHGEHORZ7KH%RDUGFRQVLGHUVVXFK 0RUHWKDQ\HDUV - transactions to be in normal course of business: Total - (` in Million) Note 62 Particulars $VVRFLDWHV-RLQW Key Management 7KHFRQ¿UPDWLRQVDQGUHFRQFLOLDWLRQRIEDODQFHVRIFHUWDLQVHFXUHG ventures Personnel DQG XQVHFXUHG ORDQV EDODQFHV ZLWK EDQNV WUDGH UHFHLYDEOHV March 31, March 31, March 31, March 31, trade and other payables and loans and advances are pending. 2018 2017 2018 2017 7KHPDQDJHPHQWLVLQWKHSURFHVVRIREWDLQLQJFRQ¿UPDWLRQVDQG Nature of Transactions: reconciliation of balances. In the opinion of the management, there ZLOOQRWEHDQ\PDWHULDOLPSDFWRQWKHFRQVROLGDWHG,QG$6¿QDQFLDO 6KRUW7HUP/RDQVDQG 0.01 statements. advances given Note 63 /RQJ7HUP/RDQVDQG State Bank of India, the lead bank of the Parent Company has advances given LQLWLDWHG &RUSRUDWH ,QVROYHQF\ 5HVROXWLRQ 3URFHVV &,53 IRU WKH 5HPXQHUDWLRQ 3DUHQW&RPSDQ\DQGDOVRIRUWKHVXEVLGLDULHV(OHFWURZRUOG'LJLWDO 2XWVWDQGLQJDWWKHHQGRI 6ROXWLRQV/LPLWHG ('6/ DQG9LGHRFRQ7HOHFRPPXQLFDWLRQV 97/ the year: under the Insolvency and Bankruptcy Code, 2016 as amended and KDV ¿OHG WKH SHWLWLRQ LQ 1DWLRQDO &RPSDQ\ /DZ 7ULEXQDO 1&/7 6KRUW7HUP/RDQVDQG 0XPEDL 7KH PDWWHU LV XQGHU FRQVLGHUDWLRQ RI WKH 1&/7 ,Q YLHZ advances given RI WKH DERYH DQG LQ YLHZ RI WKH SHUVLVWHQW VHYHUH VWUDLQV RQ WKH /RQJ7HUP/RDQVDQG ZRUNLQJFDSLWDOIRUPRUHWKDQD\HDUWKHUHLVDVLJQL¿FDQWGURSLQ advances given WKHSURGXFWLRQDQGVDOHRISURGXFWVZKLFKUDLVHVGRXEWRQWKHDELOLW\ of the Parent Company to continue as “Going Concern” for the Investments purpose of activities and operations of the Parent Company along F 0DWHULDOWUDQVDFWLRQVZLWK5HODWHG3DUWLHVGXULQJWKHSHULRGDUH ZLWKDFWLYLWLHVDQGRSHUDWLRQVRIRWKHUFRREOLJRUFRPSDQLHV$OVR 6KRUW WHUP DGYDQFHVORDQV JLYHQ WR 5DGLXP $SSOLDQFHV 3ULYDWH WKHUHIHUUDORIWKH3DUHQW&RPSDQ\('6/DQG97/LQOLQHZLWKWKH /LPLWHG` Nil (Previous period ` 0.01 Million). GLUHFWLYHVRI5HVHUYH%DQNRI,QGLDWR1&/7XQGHUWKH,QVROYHQF\ and Bankruptcy Code by lenders, amounts to a very material event. /RQJ WHUP DGYDQFHVORDQV JLYHQ WR ,%9 %UDVLO 3HWUROHR /LPLWDGD ` ` 2Q WKLV EDFNJURXQG GXULQJ WKH \HDU WKH 3DUHQW &RPSDQ\ KDV 0LOOLRQ 3UHYLRXVSHULRG 0LOOLRQ GLVFDUGHGDQGRUGLVSRVHGRIFHUWDLQFXUUHQWDVVHWVLQYLHZRIWKH same being irretrievable for the purpose of business. The Company continues the process for ascertaining the liquidation value for UHPDLQLQJ FXUUHQW DVVHWV VXFK DV UDZ PDWHULDOV ¿QLVKHG JRRGV VWRFNLQSURFHVV UHFHLYDEOHV HWF MXVWL¿DEO\ DVVXPLQJ WKDW WKH going concern concept stands vitiated and necessary adjustments ZLOOEHHIIHFWHGLQWKHGXHFRXUVH 128 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 64 $GGLWLRQDO,QIRUPDWLRQDVUHTXLUHGXQGHU6FKHGXOH,,,WRWKH&RPSDQLHV$FWRIHQWHUSULVHV&RQVROLGDWHGDV6XEVLGLDU\$VVRFLDWHV Joint Ventures: Name of the Enterprises Net Assets i.e Total Assets 6KDUHLQ3UR¿WRU/RVV Share in Other Comprehensive Share in Total Comprehensive minus Total Liabilities Income Income As % of Amount As % of Amount As % of Amount As % of Amount Consolidated (` in Million) Consolidated (` in Million) Consolidated (` in Million) Consolidated (` in Million) net Assets 3UR¿WRU Other Total Loss Comprehensive Comprehensive Income Income a) Parent 9LGHRFRQ,QGXVWULHV/LPLWHG b) Foreign Subsidiary Companies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c) Indian Subsidiary Companies $SSOLHG(QHUJ\3ULYDWH/LPLWHG (0.01) (0.01) 3UR¿FLHQW(QHUJ\3ULYDWH/LPLWHG 9LGHRFRQ(QHUJ\/LPLWHG (0.09) (0.09) 3URVSHURXV(QHUJ\3ULYDWH/LPLWHG (82.12) (82.12) &KKDWWLVJDUK3RZHU9HQWXUHV3ULYDWH/LPLWHG (0.13) (0.13) 3LSDYDY(QHUJ\3ULYDWH/LPLWHG (0.08) (0.08) 929//LPLWHG 168.02 (OHFWURZRUOG'LJLWDO6ROXWLRQV/LPLWHG -XPER7HFKQR6HUYLFHV3ULYDWH/LPLWHG (0.02) (0.02) 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG 6.82 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 9LGHRFRQ(DV\SD\3ULYDWH/LPLWHG 9.11 d) Indian Associates (Investment accounted as per equity method) 5DGLXP(QHUJ\3ULYDWH/LPLWHG (0.03) 9,63///3 0.09 (0.01) (0.01) e) Indian Joint Venture Companies (Investment accounted as per equity method) 9LGHRFRQ,Q¿QLW\,QIUDVWUXFWXUH3ULYDWH/LPLWHG /LEHUW\9LGHRFRQ*HQHUDO,QVXUDQFH&RPSDQ\ /WG f) Foreign Joint Venture Company (Investment accounted as per equity method) ,%9%UDVLO3HWUROHR/LPLWDGD g) Minority Interest in 9LGHRFRQ7HOHFRPPXQLFDWLRQV/LPLWHG 998.33 998.73 129 Annual Report 2017-18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS Note 65 Segment Information The Group’s operating segments are established on the basis of those components of the Group that are evaluated regularly by the board members (the µ&KLHI2SHUDWLQJ'HFLVLRQ0DNHU¶DVGH¿QHGLQ,QG$6µ2SHUDWLQJ6HJPHQWV¶ LQGHFLGLQJKRZWRDOORFDWHUHVRXUFHVDQGLQDVVHVVLQJSHUIRUPDQFH 7KHVHKDYHEHHQLGHQWL¿HGWDNLQJLQWRDFFRXQWQDWXUHRISURGXFWVDQGVHUYLFHVWKHGLIIHULQJULVNVDQGUHWXUQVDQGWKHLQWHUQDOEXVLQHVVUHSRUWLQJV\VWHPV 7KH*URXSKDVWKUHHSULQFLSDORSHUDWLQJDQGUHSRUWLQJVHJPHQWV YL]&RQVXPHU(OHFWURQLFVDQG+RPH$SSOLDQFHV&UXGH2LODQG1DWXUDO*DVDQG Telecommunications. 7KHDFFRXQWLQJSROLFLHVDGRSWHGIRUVHJPHQWUHSRUWLQJDUHLQOLQHZLWKWKHDFFRXQWLQJSROLF\RIWKH&RPSDQ\ZLWKIROORZLQJDGGLWLRQDOSROLFLHVIRUVHJPHQW reporting. $ 5HYHQXHDQG([SHQVHVKDYHEHHQLGHQWL¿HGWRDVHJPHQWRQWKHEDVLVRIUHODWLRQVKLSWRRSHUDWLQJDFWLYLWLHVRIWKHVHJPHQW5HYHQXHDQG([SHQVHV ZKLFKUHODWHWRHQWHUSULVHDVDZKROHDQGDUHQRWDOORFDEOHWRDVHJPHQWRQUHDVRQDEOHEDVLVKDYHEHHQGLVFORVHGDV³2WKHUV8QDOORFDEOH´ % 6HJPHQW$VVHWVDQG6HJPHQW/LDELOLWLHVUHSUHVHQW$VVHWVDQG/LDELOLWLHVLQUHVSHFWLYHVHJPHQWV,QYHVWPHQWVWD[UHODWHGDVVHWVDQGRWKHUDVVHWV DQGOLDELOLWLHVWKDWFDQQRWEHDOORFDWHGWRDVHJPHQWRQUHDVRQDEOHEDVLVKDYHEHHQGLVFORVHGDV³2WKHUV8QDOORFDEOH´ a) Primary Segment Information (` in Million) Particulars Consumer Electronics Crude Oil and Telecommunications Others Total and Home Appliances Natural Gas Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV March 31, ended March 31, ended March 31, ended March 31, ended March 31, ended 2018 March 31, 2018 March 31, 2018 March 31, 2018 March 31, 2018 March 31, 2017 2017 2017 2017 2017 i) Segment Revenue ([WHUQDO 23,222.12 337.79 ,QWHUVHJPHQW Total segment 23,222.12 116,234.86 5,275.65 6,204.97 1,577.82 8,846.85 - 337.79 30,075.59 131,624.47 ii) Segment result (36,215.22) (288.11) (94.28) (9,445.46) (462.23) (7,780.30) - 102.31 (36,771.73) (17,411.56) EHIRUH¿QDQFH costs and tax /HVV )LQDQFHFRVWV $GG 2WKHU 16,668.32 XQDOORFDEOHLQFRPH (expenses) 3UR¿W /RVV EHIRUH extraordinary item and tax Add: Extraordinary item 3UR¿W /RVV EHIRUH VKDUHRISUR¿WRI DVVRFLDWHV joint ventures and tax $GG 6KDUHRISUR¿W (1,991.71) of equity accounted investees $GG 3UR¿WRQ GLVSRVDOGLOXWLRQRI holding in VXEVLGLDULHV associates /HVV 7D[H[SHQVH 3UR¿W /RVV IRUWKH \HDUSHULRG (before adjustment for non controlling interest) /HVV 6KDUHRISUR¿W 998.33 917.71 transferred to non controlling interest 3UR¿W /RVV IRUWKH \HDUSHULRG (after adjustment for non controlling interest) 130 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS iii) Other Information: (` in Million) Consumer Electronics Crude Oil and Telecommunications 2WKHUV8QDOORFDEOH Total and Home Appliances Natural Gas Particulars Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV Year ended 0RQWKV March 31, ended March 31, ended March 31, ended March 31, ended March 31, ended 2018 March 31, 2018 March 31, 2018 March 31, 2018 March 31, 2018 March 31, 2017 2017 2017 2017 2017 Segment assets 163,760.10 172,013.67 113,302.73 Segment liabilities 129,030.91 236,987.09 Capital expenditure 113.08 21.83 107.86 Depreciation, 9,330.01 8,677.30 183.03 DPRUWL]DWLRQDQG impairment b) Secondary Segment Information (` in Million) Particulars Within India Outside India Total Year ended 0RQWKVHQGHG Year ended 0RQWKVHQGHG Year ended 0RQWKVHQGHG March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017 6HJPHQWUHYHQXHH[WHUQDO 120,660.68 10,963.79 Segment assets Segment liabilities 291,382.17 Capital expenditure 311.27 1.32 2.97 107.86 Note 66 7KH¿JXUHVRIWKHFXUUHQW\HDUDUHQRWFRPSDUDEOHZLWKWKRVHRIWKHSUHYLRXVSHULRGDV L WKHSUR¿WORVV¿JXUHVIRUWKHFXUUHQW\HDUDUHIRUDSHULRGRI PRQWKVDVDJDLQVW¿JXUHVIRUWKHFRPSDUDWLYHSHULRGUHSUHVHQWVPRQWKV LL WKHFXUUHQW\HDU¶V¿JXUHVGRQRWLQFOXGHWKHRSHUDWLRQVRIFHUWDLQ VXEVLGLDULHVMRLQWYHQWXUHVDVVRFLDWHVFRQVHTXHQWWRWKHLUFHVVDWLRQGLVSRVDOWREHVXEVLGLDULHVMRLQWYHQWXUHVDVVRFLDWHVRIWKH&RPSDQ\DQGLQFOXGH RSHUDWLRQVRIFHUWDLQVXEVLGLDULHVDVVRFLDWHVMRLQWYHQWXUHVIRUSDUWRIWKHSHULRGFRQVHTXHQWWRWKHLUDFTXLVLWLRQ As Per our report of even date For and on behalf of the Board For S Z DESHMUKH & CO. Chartered Accountants D. U. KADAM MANDAR JOSHI V. N. DHOOT S. S. DAYAMA Partner Company Secretary 0DQDJLQJ'LUHFWRU &(2 Director ,&$,0HPEHUVKLS1R 0HPEHUVKLS1R$&6 ',1 DIN 00217692 Place : Mumbai 'DWH -XQH 131 Annual Report 2017-18 Holding % of Share Dividend Proposed (0.02) (1.07) (0.01) (0.70) (0.08) (0.80) (0.19) (0.06) (0.09) (0.01) (11.82) (82.12) 3UR¿W (Loss) 1,028.82 after Tax Write Write EDFN (Net of for Tax for Tax Provision 11.97 11.97 0.29 11.68 (0.02) (1.07) (0.01) (0.70) (0.08) (0.80) (0.19) (0.06) (0.09) (0.01) (11.82) (82.12) 3UR¿W (Loss) 1,028.82 before Tax 9.03 1.16 0.03 1.13 Total Total Income 7XUQRYHU 1,880.11 1,880.11 31,787.72 Investment 0.33 0.13 0.01 21.28 90.33 106.10 Total Total 16,069.98 Liabilities 1.80 0.32 8.67 1.10 0.07 0.33 18.62 7.63 221.31 993.22 0.67 Assets 72)68%6,',$5,(6$662&,$7(&203$1,(6-2,179(1785(6 98,391.01 16,622.10 (0.33) (0.13) (6.32) 0.62 (0.17) 0.08 (0.07) 0.01 (0.07) 0.06 0.01 0.06 (0.02) (21.28) (13.38) 6.73 19.30 91,869.27 332,067.78 (1,916.80) (1,681.98)160,793.39 Reserves Total Money plication Received 0.00 0.07 0.00 0.07 0.00 0.07 0.87 0.01 0.10 0.02 0.02 0.01 203.00 1,880.10 1,000.00 Capital Share Ap- Rate 80.6222 0.81 80.6222 80.6222 19.9891 0.20 169.1900 380.97 702.30 (1,068.68) Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million Million ` ` ` ` ` ` ` ` ` ` ` ` ` € € € 520LOOLRQ Amount in Exchange %5/0LOOLRQ 860LOOLRQ 860LOOLRQ 860LOOLRQ 860LOOLRQ 860LOOLRQ 860LOOLRQ 860LOOLRQ CNY MillionCNY 0.92 [Pursuant to First Proviso of Sub-Section 129 read with Rule 5 Companies (Accounts) Rules, 2014] `` `` `` `` € € € 86 86 CNY Currency Name of the Subsidiary Company Reporting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r. Sr. No. A) COMPANIES SUBSIDIARY 132 Holding is not % of Share consolidated Joint Venture Joint Venture Reasons why WKH$VVRFLDWH Dividend Proposed Note (a) Note (a) Note (b) Note (a) LQÀXHQFH Description (0.02) of how there LVVLJQL¿FDQW 3UR¿W (Loss) after Tax Not Write Write EDFN (Net of for Tax for Tax Provision consolidation considered in 3UR¿W (Loss) before Tax 3UR¿W/RVVIRUWKH\HDU consolidation Considered in 0.23 0.23 Total Total Director Income 7XUQRYHU 0.09 (0.01) (0.03) 6,177.91 DIN 00217692 S. DAYAMA audited Networth as per latest shareholding 8,000.00 0.23 (0.02) attributable to Balance Sheet 12,870.12 Investment Total Total Liabilities Extend of Holding % For and on behalf of the Board Assets V. N. DHOOT V. ',1 Amount of $VVRFLDWHV Joint Venture Investment in (3.18) 1,387.22 (0.89) 9.12 0.01 Reserves Total year end 0DQDJLQJ'LUHFWRU &(2 31,787.72 31,787.72 Money $VVRFLDWHV plication Received Joint Venture Investment in 10.00 10.00 1,000.00 Capital Share Ap- 80,000.00 Nos. Amount of 6KDUHVRI$VVRFLDWH-RLQW9HQWXUHVKHOGE\WKH&RPSDQ\RQWKH MANDAR JOSHI Company Secretary Rate RSHUDWLRQV 0HPEHUVKLS1R$&6 Date DSLWDO Million Million Million Million Million Balance Sheet Latest Audited March 31, 2018 March 31, 2018 N.A. 0.10 0.10 March 31, 2018 2,600 26,000 0.03 Amount in Exchange December 31, 2017 `` `` `` `` `` Currency 1DPHRI$VVRFLDWHV-RLQW9HQWXUHV Name of the Subsidiary Company Reporting 9LGHRFRQ7HOHFRPPXQLFDWLRQV/WG 6HQLRU&RQVXOWLQJ3ULYDWH/LPLWHG -XPER7HFKQR6HUYLFHV3ULYDWH/WG (OHFWURZRUOG'LJLWDO6ROXWLRQV/WG 9LGHRFRQ(DV\SD\3ULYDWH/LPLWHG 9LGHRFRQ,Q¿QLW\DQG,QIUDVWUXFWXUH3ULYDWH/LPLWHG ,%9%UDVLO3HWUROHR/LPLWDGD 9,63///3 1 2 3 5DGLXP$SSOLDQFHV3ULYDWH/LPLWHG 21 20 19 18 22 Sr. Sr. Sr. Sr. No. No. D 7KHUHLVDVLJQL¿FDQWLQÀXHQFHE\YLUWXHRIMRLQWFRQWURO E 7KHUHLVDVLJQL¿FDQWLQÀXHQFHGXHWRSHUFHQWDJHRIVKDUHF 1DPHVRIWKHVXEVLGLDULHV$VVRFLDWHVZKLFKDUH\HWWRFRPPHQFH 9LGHRFRQ,QWHUQDWLRQDO&RRSHUDWLH8$ 9LGHRFRQ+\GURFDUERQ9HQWXUHV%9 9LGHRFRQ%UDVLO9HQWXUHV%9 9LGHRFRQ%UDVLO3HWUROHR/WGD 9,63///3 Place : Mumbai 'DWH -XQH D. U. KADAM Partner ,&$,0HPEHUVKLS1R As Per our report of even date For S Z DESHMUKH & CO. Chartered Accountants B)AND JOINT VENTURES ASSOCIATES 133 Annual Report 2017-18 Notes 134 PROXY FORM [Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014] VIDEOCON INDUSTRIES LIMITED CIN : L99999MH1986PLC103624 5HJG2I¿FH : 14 K.M. Stone, Aurangabad – Paithan Road, Village: Chittegaon, Taluka: Paithan District: Aurangabad - 431 105 (Maharashtra) Tel.No.: +91-2431-251501/2 Fax. No.: +91-2431-251551 E-mail id: [email protected] Website: www.videocoindustriesltd.com 28th Annual General Meeting - 17th'HFHPEHU Name of the Member(s) Registered address Email ID Folio No. / Client ID DP ID I/we, being the Member (s) of ______shares of the above named Company, hereby appoint Name :______Email ID :______ Address : ______ ______Signature :______or failing him/her Name :______Email ID :______ Address : ______ ______Signature :______or failing him/her Name :______Email ID :______ Address : ______ ______Signature :______ (contd…….) as my/ our proxy to attend and vote (on a poll) for me /us and on my/our behalf at the 28th Annual General Meeting of the Company, to be held on the Monday, 17thGD\RI'HFHPEHUDWDPDWWKH5HJLVWHUHGRI¿FHDW.06WRQH$XUDQJDEDG3DLWKDQ Road, Village: Chittegaon, Taluka: Paithan, Aurangabad - 431 105 (Maharashtra) and at any adjournment thereof in respect of such resolution as are indicated below: Resolution Resolution For Against Number Ordinary Business: 1. $GRSWLRQRI6WDQGDORQHDQG&RQVROLGDWHG$XGLWHG6WDWHPHQWRI3UR¿WDQG/RVVIRU WKH¿QDQFLDO\HDUHQGHGst March, 2018 and the Audited Balance Sheet as at that date together with the Reports of the Board of Directors and Auditors thereon. 2. To Appoint a Director in place of Mr. Venugopal N. Dhoot (DIN: 00092450), who retires by rotation, and being eligible, offers himself for Re-Appointment. 6SHFLDO%XVLQHVV 3. 5DWL¿FDWLRQDQGFRQ¿UPDWLRQRISD\PHQWRIUHPXQHUDWLRQWR0U-D\DQW%*DODQGH Cost Auditor of the Company. Signed this ______day of ______2018. $I¿[ Revenue Stamp Re. 1 ______Signature of the Shareholder Signature of the Proxy holder(s) Notes: 7KLVIRUPRI3UR[\LQRUGHUWREHHIIHFWLYHVKRXOGEHGXO\FRPSOHWHGDQGGHSRVLWHGDWWKH5HJLVWHUHG2I¿FHRIWKH&RPSDQ\QRWOHVV than 48 hours before the commencement of the Meeting. 1. 7KLVIRUPRI3UR[\LQRUGHUWREHHIIHFWLYHVKRXOGEHGXO\FRPSOHWHGDQGGHSRVLWHGDWWKH5HJLVWHUHG2I¿FHRIWKH&RPSDQ\QRW less than 48 hours before the commencement of the Meeting. 2. 7KLVLVRQO\RSWLRQDO3OHDVHSXWDµ¥¶LQWKHDSSURSULDWHFROXPQDJDLQVWWKHUHVROXWLRQVLQGLFDWHGLQWKHER[DERYH,I\RXOHDYH WKHµ)RU¶RUµ$JDLQVW¶FROXPQEODQNDJDLQVWDQ\RUDOOWKHUHVROXWLRQV\RXU3UR[\ZLOOEHHQWLWOHGWRYRWHLQWKHPDQQHUDVKHVKH WKLQNVDSSURSULDWH 3. $SSRLQWLQJDSUR[\GRHVQRWSUHYHQWDPHPEHUIURPDWWHQGLQJWKHPHHWLQJLQSHUVRQLIKHVRZLVKHV 4. ,QFDVHRIMRLQWKROGHUVWKHVLJQDWXUHRIDQ\RQHKROGHUZLOOEHVXI¿FLHQWEXWQDPHVRIDOOWKHMRLQWKROGHUVVKRXOGEHVWDWHG ATTENDANCE SLIP VIDEOCON INDUSTRIES LIMITED CIN : L99999MH1986PLC103624 5HJG2I¿FH : 14 K.M. Stone, Aurangabad – Paithan Road, Village: Chittegaon, Taluka: Paithan District: Aurangabad - 431 105 (Maharashtra) Tel.No.: +91-2431-251501/2 Fax. No.: +91-2431-251551 E-mail id: [email protected] Website: www.videoconworld.com 28th Annual General Meeting - 17th'HFHPEHU Regd. Folio No. / Client ID No. DP ID No. No. of shares held I certify that I am a registered Shareholder/Proxy for the registered Shareholder of the Company. I hereby record my presence at the 28th ANNUAL GENERAL MEETING of the Company held on Monday, 17th'HFHPEHUDWDPDWWKH5HJLVWHUHG2I¿FHRIWKH&RPSDQ\DW.06WRQH$XUDQJDEDG3DLWKDQ Road, Village: Chittegaon, Taluka: Paithan, Aurangabad - 431 105 (Maharashtra). ...... Member’s / Proxy’s Name in Block Letters Member’s / Proxy’s Signature 1RWH 3OHDVH¿OOLQWKLVDWWHQGDQFHVOLSDQGKDQGLWRYHUDWWKH(175$1&(2)7+(+$// Please read errata for typesetting matter. KYC FORM To Date: MCS SHARE TRANSFER AGENTS LIMITED A-209 C- Wing, 2nd Floor, Gokul Industries, Estate Building Sagbaug, Marol Co-op Industrial Area, B/H Times Square, Andheri (E), Mumbai – 400059 Folio No: Unit: VIDEOCON INDUSTRIES LIMITED Dear Sir/Madam, No of Shares: ,:HUHIHUWR\RXUOHWWHUGDWHGBBBBBBBBBBBBBBBBBDQGEDVHGRQWKHUHTXLUHGGHWDLOVWREHXSGDWHGSOHDVH¿QGWKHEHORZGRFXPHQWV,:HDOVR request you to record contact number(s) and email id(S) for future communications as under. Name of the shareholder(s) (A) PAN (B) Bank details (C) 6SHFLPHQ Signature (D) Email ID (E) Mobile No. (F) Nominee Details Based on the above data, we are forwarding herewith the required supporting documents by ticking in the appropriate checkbox below IRUDOOWKH¿HOGVZKHUHWKHVWDWXVLVVKRZQDVµ5HTXLUHG¶LQWKHDERYHWDEOH A For registering PAN of the registered and/or joint shareholders DVDSSOLFDEOH -RLQW -RLQWKROGHU -RLQWKROGHU VHOIDWWHVWHGFRS\IRU Registered shareholder holder 1 2 all Shareholders attached) B For registering Bank details of the registered shareholder Aadhar/Passport/utility bill Original cancelled cheque leaf Bank Passbook/Bank Statement C For registering thH6SHFLPHQ6LJQDWXUHRIregistered and/or joint sKDUHKROGHUV DVDSSOLFDEle) Banker Original cancelled cheque Bank Passbook/Bank Statement $I¿GDYLW YHUL¿FDWLRQ leaf (for all Shareholders attached) D For Updating the email id: E: Mobile No: F For registering the nominee details by the registered shareholder Form SH-13 (Nomination registration form attached) 1RWH )RUUHVLGHQWVRI6LNNLPLQVWHDGRI3$1SURYLGH$DGKDU&DUG9RWHUV&DUG'ULYLQJ/LFHQVH3DVVSRUWRUDQ\RWKHULGHQWLW\SURRI issued by Govt. I /We hereby state that the above mentioned details are true and correct and we consent towards updating the particulars base d on the self- attested copies of the documents enclosed with this letter by attesting my/our signature(s) to it Sign:______Sign: ______Sign: ______Sign: ______ Registered holder -RLQWKROGHU -RLQWKROGHU -RLQWKROGHU Name of the shareholder PAN Bank IMPORTANT AND URGENT FOR IMMEDIATE ACTION Dear Shareholder, 8QLW 9LGHRFRQ,QGXVWULHV/LPLWHG Sub: Requirement of updation of KYC details of registered shareholders and mandatory dematerialisation for transfer of VHFXULWLHV We refer to the SEBI circular no.SEBI/HO/MIRSD/DOP1/CIR/P/2018/73 dated 20th April, 2018 and SEBI Circular no.SEBI/HO/MIRSD/DOS3/ &,53GDWHGWK-XO\LQZKLFK6(%,KDVGLUHFWHGWRDOOWKHOLVWHG&RPSDQLHVWRUHFRUGWKH3$1DQG%$1.$&&2817GHWDLOVRIDOO WKHLUVKDUHKROGHUVKROGLQJVKDUHVLQSK\VLFDOPRGHWKURXJKWKHLU5HJLVWUDUDQG6KDUH7UDQVIHU$JHQW 57$ DQG6(%,1RWL¿FDWLRQ1R6(%,/$'152 *1GDWHGWK-XQHUHDGZLWK%6(&LUFXODU1R/,67&203 GDWHGWK-XO\DQG16(&LUFXODU1R16(&0/ GDWHG WK-XO\RQPDQGDWRU\GHPDWHULDOL]DWLRQIRUWUDQVIHURIVHFXULWLHV We, therefore, request you to send us the following documents in order to update your PAN card, bank account and other details in the Company’s records and take note of the following : A. Updation of PAN of the registered and/or joint shareholders: 6HOIDWWHVWHGOHJLEOHFRS\RI3$1FDUG ,I WKH VKDUHKROGHU LV D UHVLGHQW RI 6LNNLP WKH VKDUHKROGHU LV UHTXLUHG WR VXEPLW D YDOLG ,GHQWLW\ SURRI LVVXHG E\ WKH *RYHUQPHQW %8SGDWLRQRI%DQN$FFRXQWGHWDLOVRIWKHUHJLVWHUHGVKDUHKROGHU ,QFDVHZKHUHLQWKHRULJLQDOFDQFHOOHGFKHTXHOHDIKDVWKHVKDUHKROGHU¶VQDPHSULQWHG )RUDGGUHVVSURRI 6HOIDWWHVWHGOHJLEOHFRS\RI$DGKDUSDVVSRUWXWLOLW\ELOO QRWROGHUWKDQPRQWKV 2ULJLQDOFDQFHOOHGFKHTXHOHDIFRQWDLQLQJWKH%DQN$F1R%DQN1DPHW\SHRIDFFRXQW,)6&&RGH0,&5&RGHDQGWKHQDPHRIWKH shareholder printed on the cheque leaf. OR ,QFDVHVZKHUHLQWKHFDQFHOOHGFKHTXHOHDIGRHV127FRQWDLQWKHVKDUHKROGHU¶VQDPHSULQWHGRQLW )RUDGGUHVVSURRI 6HOIDWWHVWHGOHJLEOHFRS\RI$DGKDUSDVVSRUWXWLOLW\ELOO QRWROGHUWKDQPRQWKV 2ULJLQDOFDQFHOOHGFKHTXHOHDIFRQWDLQLQJWKHGHWDLOV%DQN$F1R%DQN1DPHW\SHRIDFFRXQW,)6&&RGH0,&5&RGH /HJLEOHFRS\RIWKH¿UVWDQGODVWSDJHRIEDQNSDVVERRNEDQNVWDWHPHQWVSHFLI\LQJWKH.<&GHWDLOVRIWKHUHJLVWHUHGVKDUHKROGHUVXFK as the name, address, bank account number and the bank statement not older than 3 months, etc. duly attested by the Bank Manager under his signature, name, employee code, designation, bank seal & address stamp, Phone no. and date of attestation. $VGLUHFWHGE\6(%,LQFDVHRIIDLOXUHWRUHJLVWHUWKH3$1DQGEDQNDFFRXQWGHWDLOVDVDIRUHVDLGDQ\WUDQVDFWLRQLQWKHVHFXULWLHVRIWKH &RPSDQ\VKDOOEHVXEMHFWWRHQKDQFHGGXHGLOLJHQFHE\WKH&RPSDQ\57$DVPD\EHSUHVFULEHG$OVRLWPD\EHQRWHGWKDWLVVXHRISD\PHQW LQVWUXPHQWVZLWKRXWEDQNGHWDLOVPD\EHGLVDOORZHG :HZRXOGDOVROLNHWRUHJLVWHURWKHU.<&GHWDLOVVXFKDVHPDLOLGPRELOHQXPEHUDQGQRPLQDWLRQ,QWKLVFRQWH[WZHUHTXHVW\RXWRNLQGO\¿OOLQWKHGHWDLOV as mentioned in form for updation of shareholder’s details attached herewith and forward the same along with all the supporting documents based on requirements considering the below mentioned points. C. Updation of Email id: Email-id of the registered shareholder for all future communication in electronic mode (Go Green Initiative). D. Registration of Mobile No.: Mobile no. of registered shareholder for future direct communication. E. Registration of Nomination : :HUHTXHVW\RXWRNLQGO\IRUZDUGGXO\¿OOHGLQ.<&IRUPDORQJZLWKFRSLHVRIVXSSRUWLQJGRFXPHQWVIRUDOOWKH³5HTXLUHG´UHPDUNVZLWKLQGD\VIURPWKH date of this notice. Single copy of supporting doFXPHQWVLVVXI¿FLHQWIRUXSGDWLQJPXOWLSOHVXEMHFWV ) 6KDUHKROGHU V SOHDVHQRWHWKDWUHTXHVW V IRUWUDQVIHURIVKDUHVLQSK\VLFDOIRUPZLOOEHFRQVLGHUHGXSWRWK'HFHPEHU VXEVHTXHQWO\DQ\UHTXHVWIRUWUDQVIHURIVKDUHV H[FHSWUHTXHVWUHODWHGWRWUDQVPLVVLRQRUWUDQVSRVLWLRQRI VHFXULWLHV VKDOOQRW EHSURFHVVHG 7KLVLQWLPDWLRQLVLQDFFRUGDQFHZLWK6(%,1RWL¿FDWLRQGDWHGWK-XQHUHDG ZLWK %6( FLUFXODU GDWHG WK -XO\ DQG 16( &LUFXODU GDWHG WK -XO\ FRS\ DYDLODEOH RQ WKH &RPSDQ\¶V ZHEVLWH$FFRUGLQJO\\RXDUHDGYLVHGWRGHPDWHULDOL]H\RXUHQWLUHSK\VLFDOVKDUHKROGLQJLQWKH&RPSDQ\ Thanking you, MCS Share Transfer Agent Limited Unit: Videocon Industries Limited $ &:LQJQGÀRRU*RNXO,QGXVWULHV(VWDWH%XLOGLQJ 6DJEDXJ0DURO&RRS,QGXVWULDO$UHD %+7LPHV6TXDUH$QGKHUL(DVW0XPEDL ZZZZHVWHUQSUHVVLQ