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Notes to Accounts of Videocon Industries Ltd.

Dec 31, 2014

1.1 Rights, Preference and Restrictions:

a) The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to equal right of voting and dividend.

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

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

2.1 Secured Loans:

a) Rupee Term Loans from Banks and Financial Institutions:

i) The Company alongwith 12 other affiliates/entities (collectively referred to as ''Obligors'' and individually referred to as ''Borrower'') executed facility agreement with consortium of existing domestic rupee term lenders, in the obligor/co- obligor structure, wherein all the Rupee Term Loans of the Obligors are pooled together. The Borrower entities covered are Videocon Industries Limited (VIL), Value Industries Limited, Trend Electronics Limited, KAIL Limited, Millennium Appliances India Limited, Applicomp (India) Limited, Sky Appliances Limited, Techno Electronics Limited, Century Appliances Limited, PE Electronics Limited, Techno Kart India Limited (formerly Next Retail India Limited), Evans Fraser and Co. (India) Limited and Videocon International Electronics Limited.

Loans amounting to Rs. 167,393.20 Million (As at 30th June, 2013 Rs. 144,178.53 Million) are secured by first pari-passu charge on all present and future tangible/intangible assets (excluding the Identified Properties) of each of the Borrower, first pari-passu charge on the Trust and Retention Accounts of the Borrowers, second pari-passu charge on Identified Assets of Videocon Hydrocarbon Holdings Limited''s (VHHL) subsidiaries through pledge of entire shareholding of VHHL in these overseas subsidiaries, second charge on pledge of 100% shares of Videocon Oil Ventures Limited and VHHL, second pari-passu charge on VHHL''s share of cash flows from Identified Assets and second pari-passu charge over current assets of each of the Borrowers. The Rupee Term Loans are also secured by first ranking pledge over specified numbers of equity shares of Videocon Industries Limited, Trend Electronics Limited and Value Industries Limited held by the Promoters, the personal guarantee of Mr. Venugopal N. Dhoot, Mr. Pradipkumar N. Dhoot, Mr. Rajkumar N. Dhoot and first pari-passu charge on ''Videocon'' brand (Also refer Note No. 36).

ii) Loans amounting to Rs. 150.00 Million (As at 30th June, 2013 Rs. 1,200.00 Million) is secured by first pari-passu charge over the fixed assets situated at Bharuch and Aurangabad, both present and future.

iii) Loans amounting to Rs. 512.40 Million (As at 30th June, 2013 Rs. 581.03 Million) is secured by mortgage of immovable assets and first charge on movable assets, cash flows and intangible assets pertaining to the 5.75 MW Multi Crystalline Silicon Photovoltaic Technology Project at Warora.

iv) Loans amounting to Rs. 10,750.00 Million (As at 30th June, 2013 Rs. Nil) are secured by first pari-passu charge on book debts of consumer electronics and home appliances division which are not charged to bankers for securing working capital loans and first pari-passu charge on equitable mortgage of specified properties owned by the Company and owned by other 6 entities. The loans are further secured by personal guarantee of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot and corporate guarantee of the entities whose properties have been mortgaged.

v) Loans amounting to Rs. 2,250.00 Million (As at 30th June, 2013 Rs. Nil) is secured by subservient charge on current assets of the Company, pledge of equity shares of Videocon Industries Limited held by other entities and personal guarantee of Mr. Venugopal N. Dhoot.

vi) Loans amounting to Rs. 2,500.00 Million (As at 30th June, 201 3 Rs. Nil) is secured by subservient charge on current assets of the Company, extension of pledge of equity shares of Videocon Industries Limited mentioned in note no. (v) above and pledge of equity shares of Videocon d2h Limited held by other entities, mortgage of properties owned by other entities and personal guarantee of Mr. Venugopal N. Dhoot.

b) Vehicle Loan from Banks are secured by way of hypothecation of Vehicles acquired out of the said loan. The loans are also secured by personal guarantee of Mr. Venugopal N. Dhoot.

2.2 Unsecured Loans:

a) The Company had issued 2,000 Foreign Currency Convertible Bonds of US$ 100,000 each (Bonds) during the year 2010, due on 16th December, 2015, out of which 1,944 (As at 30th June, 2013 - 1,944) Bonds are outstanding.

i) The Bonds are convertible at the option of the bondholders at any time on or after 25th January, 2011 to 7 days before maturity date i.e. 16th December, 2015, at a fixed exchange rate of Rs. 45.255 per 1 US$ and at initial conversion price of Rs. 239.5265 per share being at premium of 3% over reference share price. The conversion price will be subject to adjustment for, among other things, subdivision or consolidation of shares, rights issues, capital distributions, stock dividends and other dilutive events.

ii) The Bonds are redeemable in whole but not in part at the option of the Company on or after 15th December, 2013, if the closing price of shares for each of the 30 consecutive trading days prior to the date on which notice of such redemption is given was at least 130% of the conversion price.

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

b) The Company has availed interest free Sales Tax Deferral under Special Incentive to Prestigious Unit (Modified) Scheme. Out of total outstanding, Rs. 12.48 Million is repayable in the financial year 2015 and balance amount of Rs. 4.16 Million is repayable in the financial year 2016.

3.1 Secured Loans

a) Short Term Loans from Banks

i) Loans amounting to Rs. 1,900.00 Million (As at 30th June, 2013 Rs. Nil) is secured by mortgage of specified property owned by the Company, negative lien on property owned by other entities and personal guarantee of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

ii) Loans amounting to Rs. 1,500.00 Million (As at 30th June, 2013 Rs. Nil) are secured by first pari-passu charge on book debts of consumer electronics and home appliances division which are not charged to bankers for securing working capital loans. The loan is further secured by personal guarantee of Mr. Venugopal N. Dhoot, Mr. Pradipkumar N. Dhoot and Mr. Rajkumar N. Dhoot.

iii) Loans amounting toRs. 6,000.00 Million (As at 30th June, 2013 Rs. Nil) is secured against fixed deposits held by the Company.

iv) Loans amounting to Rs. 1,000.00 Million (As at 30th June, 2013 Rs. Nil) is secured by subservient charge on current assets of the Company, pledge of equity shares of Videocond2h Limited held by other entities, mortgage of specified properties owned by other entities, assignment of receivables from these properties and personal guarantee of Mr. Venugopal N. Dhoot. b) Working Capital Loans from Banks are secured by hypothecation of the Company''s stock of raw materials, packing materials, stock-in-process, finished goods, stores and spares, book debts of Glass Shell Division and personal guarantee of Mr. Venugopal N. Dhoot, Mr. Pradipkumar N. Dhoot and Mr. Rajkumar N. Dhoot. 7.2 Unsecured Loans

i) Unsecured Loans from Banks amounting to Rs. 9,250.00 Million (As at 30th June, 2013 Rs. Nil) is secured by exclusive charge over the land situated at Dist. Rewa, Madhya Pradesh owned by other entities, stake in PT. Gaung Alam Semesta''s coal concession in Indonesia owned by other entities and personal guarantee of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot. ii) Unsecured Loans from Banks amounting to Rs. 1,249.93 Million (As at 30th June, 2013 Rs. Nil) is secured by equitable mortgage of property owned by other entities and personal guarantee of Mr. Venugopal N. Dhoot, Mr. Rajkumar N. Dhoot and Mr. Pradipkumar N. Dhoot.

4. ADDITIONAL NOTES TO FINANCIAL STATEMENTS

4.1 During the period, there is a write backoff 15.45 Million (Previous period Rs. 1.73 Million) against the diminution recognised in earlier years in the value of investments.

4.2 The Company has kept the investment activities separate and distinct from other businesses. Consequently, all the income and expenditure pertaining to investment activities have been allocated to the Investments and Securities Division and the income/(loss) after netting of the related expenditure has been shown as "Income/ (Loss) from Investments and Securities Division" under "Other Income" which includes in respect of the long term investments, dividend of Rs. 1.97 Million (Previous period Rs. 1.89 Million), interest on bonds ofRs. 6.96 Million (Previous period Rs. 6.96 Million), profit on sale/disposal of investments of Rs. 94.60 Million (Previous period Rs. 43.05 Million) and in respect of current investments, dividend of Rs. Nil (Previous period Rs. 0.27 Million).

in Million) As at As at 31st Dec, 30th June, 2014 2013

5. CONTINGENT LIABILITIES AND COMMITMENTS

A) Commitments Estimated amount of contract 1,032.83 508.19 remaining to be executed on capital account and not provided for (net of advances)

B) Contingent Liabilities not provided for:

i) Letters of Guarantees 43,086.10 39,317.01

ii) Letters of Credit opened 82,394.06 61,216.92 (including Standby Letters of Credit and Letter of Comfort)

iii) Claims against the Company not acknowledged as debts

a) Custom Duty demands 282.77 502.46 and penalties under dispute

[Amount paid under protest Rs. 0.07 Million (As at 30th June, 2013 Rs. 3.41 Million)]

b) Income Tax demands 217.63 3,149.41 under dispute

c) Excise Duty and Service 1,230.79 1,034.95 Tax demands and penalties under dispute [Amount paid under protest Rs. 31.53 Million (As at 30th June, 2013 Rs. 30.86 Million)]

d) Sales Tax demands 1,135.24 1,131.51 under dispute [Amount paid under protest Rs. 70.93 Million (As at 30th June, 2013 Rs. 377.09 Million)]

e) Others 2,166.72 2,153.30 [Amount paid under protest Rs. 50.00 Million (As at 30th June, 2013 Rs. 50.00 Million)]

f) Show Cause Notices (SCNs) have been served on the Operator of the Rawa Oil & Gas Field Joint Venture (Rawa JV) for non payment of Service Tax and Educational Cess on various services for the period July 2003 to 31 st March, 2013. The amount involved relating to Rawa Block is Rs. 419.71 Million (As at 30th June, 2013 Rs. 418.88 Million).

The Operator is contesting the SCNs/demands before Commissioner of Service Tax and has filed appeal before CESTAT, Bangalore and also writ petition before Hon''ble High Court of Madras challenging service tax demands on some of the services and believes that its position is likely to be upheld. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may result has been made in the accounts as the same is subject to agreement by the members of the Joint Venture. Should it ultimately become payable, the Company''s share as per the participating interest would be upto Rs. 104.93 Million (As at 30th June, 2013 Rs. 104.72 Million).

g) Disputed Income Tax demand amounting toRs. 22.29 Million (As at 30th June, 2013 Rs. 22.29 Million) in respect of certain payments made by Rawa Oil & Gas Field Joint Venture is currently pending before the Hon''ble High Court of Madras. The ultimate outcome of the matter cannot presently be determined and no provision for any liability that may result has been made as the same is subject to agreement by the members of the Joint Venture. Should it ultimately become payable, the Company''s share as per the participating interest would be upto Rs. 5.57 Million (As at 30th June, 2013 Rs. 5.57 Million).

6. There are certain disputes with the Government of India ("GOI") with respect to the Production Sharing Contract dated 28th October, 1994 ("Rawa PSC") pertaining to Rawa Oil & Gas Field which were referred to more than one international arbitration for resolution. The respective International Arbitral Tribunals have issued their respective Awards from time to time substantially in favour of the Company. However the GOI has preferred to challenge few of the Awards in various Courts in India and overseas but has not succeeded so far in any of the Courts. Pending final resolution of the disputes, certain amounts have been excess recovered, deducted or short paid by the GOI and / or its Nominees which have been challenged by the Company and the Company is seeking recovery of amounts excessively recovered, deducted or short paid by the GOI and/ or its Nominees. Based on legal advice, the 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 of these disputes in accordance with the determination of the amount by the Hon''ble Arbitral Tribunal/relevant courts in this regard shall be accounted for on the final outcome in those matters.

7. The Company alongwith 12 other affiliates/entities (collectively referred to as ''Obligors'' or individually as ''Borrower'') executed Facility Agreement with the consortium of existing domestic rupee term lenders, under the obligor/co-obligor structure, wherein all the Rupee Term Loans of the Obligors are pooled together. The Borrower entities are Videocon Industries Limited, Value Industries Limited, Trend Electronics Limited, KAIL Limited, Millennium Appliances India Limited, Applicomp (India) Limited, Sky Appliances Limited, Techno Electronics Limited, Century Appliances Limited, PE Electronics Limited, Techno Kart India Limited (formerly Next Retail India Limited), Evans Fraserand Co. (India) Limited and Videocon International Electronics Limited. As per the said Facility Agreement, the Company is agent of the Obligors and has been referred to as ''Obligor Agent''. The Rupee Term Loans have to be utilised for the purpose mentioned in the Facility Agreement which is mainly for refinancing of existing Rupee Term Loans of the Obligors. Accordingly, the Rupee Term Loans of Rs. 28,149.54 Million have been allocated to respective Obligors based on their outstanding amount as on 31 st December, 2011 and the lenders have also disbursed Rs. 2,520.00 Million to some Obligors. As the Company is a co-obligor, it is contingently liable in respect of the borrowings of other Obligors/Borrowers to the extent of outstanding balance of Rupee Term Loans as on 31 st December, 2014 of Rs. 30,051.55 Million (As at 30th June, 2013 Rs. 20,307.40 Million).

8. The Consortium of various banks have sanctioned the Letter of Comfort (LoC)/Stand-by Letters of Credit (SBLC) facility to the Company and its subsidiary Videocon Oil Ventures Limited (VOVL) (collectively referred to as ''Obligors'') to secure the foreign currency facility raised / to be raised by Videocon Hydrocarbon Holdings Limited (VHHL), an overseas subsidiary, from its lenders. The LoC/SBLC facility is secured by first ranking pledge of 100% shares of VOVL, VHHL and shares of certain subsidiaries of VHHL, charge over their fixed assets, VHHL''s share of cash flows from identified oil & gas assets through escrow of receivables, first ranking / exclusive charge on specified bank accounts forthe benefit of the relevant LoC/SBLC provider, exclusive charge on oil & gas facility servicing account of Obligors set-up underthe onshore Trust and Retention Accounts, negative lien for shares of other subsidiaries of VHHL viz. Videocon JPDA 06-103 Limited and Videocon Australia WA-388P Limited, first pari-passu charge on Videocon brand and personal guarantee of Mr. Venugopal N. Dhoot, Mr. Pradipkumar N. Dhoot and Mr. Rajkumar N. Dhoot.

Accordingly, the Company is contingently liable in respect of the LoC/SBLC facility of VOVL to the extent of Rs. 86,504.82 Million (As at 30th June, 2013 Rs. 69,933.48 Million).

9. Intesa Sanpaolo S.p.A., an Italian bank, initiated winding up proceedings against the Company on the basis of ''Patronage Letter'' issued by the Company to the said Italian bank in June, 2007 for financial assistance given to one level step down subsidiary, M/s. VDC Technologies S.p.A., an Italian defunct company acquired by another subsidiary of the Company, M/s. Eagle Corporation Limited registered in Cayman Island. Single judge vide judgement dated 5th December, 2013 passed a conditional order of winding up of the company on its failure to deposit in court the amount of Rs. 2,597.30 Million equivalent of Euro 38.00 Million, which was confirmed by the division bench of the High Court of Judicature at Bombay on 18th July, 2014.

The Company has challenged the order of Bombay High Court by way of Special Leave Petition (''SLP'') in the Supreme Court. The Company has denied its liability out of the said ''Patronage Letter''. The Company, pending the final disposal of SLR agreed to create lien on Fixed Deposit Receipts of Rs. 1,363.82 Million and Rs. 1,210.40 Million in favour of the Registrar of Supreme Court. The Hon''ble Supreme Court has stayed the impugned order of the Bombay High Court and directed to issue Notice for further hearing of the matter. The Company has been advised by the legal counsels that the Italian bank does not have sustainable claim against the Company and as such no provision has been considered in the financial statements.

10. The Directorate of Revenue Intelligence, Mumbai Zonal Unit (''DRI'') has issued Show Cause Notice(s) (''SCN'') dated 10th September, 2014 and 30th December, 2014 to the Company in connection with import of Colour Picture Tubes (''CPTs'') by the Company and other concerns. Vide SCNs, the Company has been asked to explain / as to why the declared value of CPTs imported should not be rejected and re-determined and why the amount of anti-dumping duty of Rs. 1,657.21 Million and penalty thereon should not be recovered under the extended period underthe provisons of the Customs Act, 1962.

The Company has denied the allegation made by DRI for alleged evasion of duty before the adjudicating authority. Further, the Company has been advised by its counsels that as the goods in question are not domestically produced or manufactured in India, the question of levy of anti-dumping duty is untenable in the court of laws and, accordingly, there is no question of duty evasion or penalty thereon and no provision has been considered necessary in the financial statements.

11. The Company has, directly and through its subsidiaries, made investments aggregating to Rs. 65,002.03 Million (As at 30th June, 2013 Rs. 49,337.50 Million) and also given advances of Rs. 340.46 Million (As at 30th June, 2013 Rs. 782.74 Million) to Videocon Telecommunications Limited (VTL), the subsidiary. VTL was granted the license for providing Unified Access Services (UAS) in 21 circles by the Department of Telecommunications, Government of India (DoT) in 2008 and was also allotted spectrum in 20 circles. The Hon''ble Supreme Court of India, vide its judgment dated 2nd February, 2012, quashed all the UAS licenses granted on or after 10th January, 2008 and the subsequent allocation of spectrum to these licensees, which also included the 21 UAS licenses granted to VTL and the spectrum allotted to it. The Hon''ble Supreme Court of India, also directed the Telecom Regulatory Authority of India (TRAI) to make fresh recommendations for grant of licenses and allocation of spectrum and the Central Government to grant fresh licenses and allocation of spectrum by auction thereafter.

The Central Government conducted the auction of spectrum in November, 2012. VTL participated in the auction and has been awarded spectrum in 6 circles. VTL is continuing its business as a going concern. As VTL has huge accumulated losses, its ability to continue as going concern is dependent on its ability to fund its operating and capital requirements. VTL is confident of mobilizing necessary resources for continuing its operations as per the business plan. Accordingly, in the opinion of the management, no provision is required for diminution in the value of aforesaid investments and advances to VTL.

12. A) Unincorporated Joint Ventures:

The Financial Statements reflect the share of the Company in the assets and the liabilities as well as the income and the expenditure of Joint Venture Operations on a line- by-line basis. The Company incorporates its share in the operations of the Joint Venture based on statements of account received from the Operator. The Company has, in terms of Significant Accounting Policy No. 1 (E), recognised abandonment costs based on the technical assessment of current costs as cost of producing properties and has provided depletion thereon under ''Unit of Production'' method as part of Producing Properties in line with Guidance Note on Accounting of Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

The Company has participating interest of 25% in Rawa Oil and Gas Field Joint Venture (|V) through a Production Sharing Contract (PSC). Other members of the JV are Oil and Natural Gas Corporation Limited, Cairn India Limited and Rawa Oil (Singapore) Pte. Limited. The parties have pursuant to the PSC, entered into a Joint Operating Agreement. Cairn India Limited is the Operator.

B) Incorporated Jointly Controlled Entities:

i) Videocon Infinity Infrastructures Private Limited is a 50 : 50 Joint Venture Company incorporated in India, with Infinity Infotech Parks Limited to carry on the business of infrastructure development like construction of IT/ITes Parks, Biotech Parks etc. The Joint Venture Company has not commenced its commercial operations.

C) The estimated amount of commitment of the Company towards contribution in various Joint Ventures for next year based on minimum work program is Rs. 1,708.77 Million (As at 30th June, 2013 Rs. 3,656.49 Million).

13. The outstanding balances of certain Trade Receivables, Trade Payables, Deposits, Advances and Other Current Assets/ Liabilities are subject to confirmation and reconciliation, if any. However, in the opinion of the management, adjustment, if any, will not be material.

14. In the opinion of the Board, the value on realisation of Current Assets, Loans and Advances in the ordinary course of the business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

15. There are no amounts due and outstanding, to be credited to the Investor Education and Protection Fund.

16. Related Party Disclosures:

As required under Accounting Standard 18 on "Related Party Disclosures", the disclosure of transaction with related parties as defined in the Accounting Standard are given below:

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

i) Subsidiaries:

a) Chhattisgarh Power Ventures Private Limited

b) Liberty Videocon General Insurance Company Limited

c) Middle East Appliances LLC

d) Pipavav Energy Private Limited

e) Prosperous Energy Private Limited

f) Videocon Electronics (Shenzhen) Limited (Chinese Name - Weiyoukang Electronic (Shenzhen) Co., Ltd.)

g) Videocon Global Limited

h) Videocon Oil Ventures Limited and its subsidiaries Videocon Estelle Limited (up to 26th March, 2014)

Videocon Ivory Limited (up to 15th February 2014)

Videocon Hydrocarbon Holdings Limited and its subsidiaries

- Videocon JPDA 06-103 Limited Videocon Indonesia Nunukan Inc. Videocon Energy Brazil Limited Videocon Australia WA-388-P Limited Videocon Mauritius Energy Limited and its subsidiary

Videocon Mozambique Rovuma 1 Limited (upto 7th January, 2014) i) Videocon International Electronics Limited and its subsidiaries

Jumbo Techno Services Private Limited

Senior Consulting Private Limited

Videocon Telecommunications Limited and its subsidiary

Datacom Telecommunications Private Limited

j) Videocon Energy Limited and its subsidiary

Proficient Energy Private Limited and its subsidiary

Applied Energy Private Limited and its subsidiaries

Unity Power Private Limited (up to 15th May, 2014)

Comet Power Private Limited and its subsidiaries

Indigo Energy Private Limited Percept Energy Private Limited ii) Associates and Joint Ventures:

Radium Energy Private Limited - Associate - 26%

Unity Power Private Limited - Associate - 26% (Associate of Applied Energy Private Limited w.e.f. 16th May, 2014)

Videocon Infinity Infrastructure Private Limited - Joint Venture - 50%

IBV Brasil Petroleo Limitada - (50% Joint Venture of Videocon Energy Brazil Limited)

iii) Key Management Personnel:

Mr. Venugopal N. Dhoot - Chairman & Managing Director

Mr. Sunil Kumar Jain - Senior Vice President

Mr. Sunil Tandon - Senior Vice President (w.e.f. 1st July, 2013)

Mr. Chandramani M. Singh -Vice President

Mr. Abhijit Kotnis - Vice President

Mr. Arun Pal - Vice President

C) Material transactions with Related Parties during the period are:

i) Revenue from Operations from Videocon Telecommunications Limited Rs. 215.58 Million (Previous period Rs. 51.21 Million).

ii) Other Income and Reimbursement of Expenses received from Videocon Hydrocarbon Holdings Limited Rs. 23,918.55 Million (Previous period Rs. 2,920.51 Million), Videocon International Electronics Limited Rs. 5,351.17 Million (Previous period Rs. 4,456.13 Million) and Videocon Oil Ventures Limited Rs. 4,145.43 Million (Previous period Rs. 741.11 Million).

iii) Other Expenses paid to Videocon Telecommunications Limited Rs. 0.79 Million (Previous period Rs. Nil).

iv) Investments in equity shares of Videocon Telecommunications Limited Rs. 4,526.91 Million (Previous period Rs. 3,264.55 Million) and Liberty Videocon General Insurance Company Limited Rs. 2,765.00 Million (Previous period Rs. 2,749.90 Million).

v) Long Term Advances/Loans Given to Videocon Oil Ventures Limited Rs. 419.12 Million (Previous period Rs. 9,713.01 Million).

vi) Long Term Advances/Loan received back from Videocon Telecommunications Limited Rs. 442.28 Million (Previous period Rs. 16,415.97 Million) and to Videocon International Electronics Limited Rs. 2,987.21 Million (Previous period Long Term Advances Given Rs. 19,103.13 Million).

vii) Short Term Advances/Loans Given to Comet Power Private Limited Rs. 1.50 Million (Previous period Rs. 0.10 Million).

viii) Short Term Advances/Loan Received back from Chhattisgarh Power Ventures Private Limited Rs. 1,449.27 Million (Previous period Short Term Advances Given Rs. 536.92 Million), Pipavav Energy Private Limited Rs. 1,420.81 Million (Previous period Rs. 75.57 Million) and Prosperous Energy Private Limited Rs. 388.58 Million (Previous period Short Term Advances Given Rs. 7.94 Million).

ix) Short Term Advances/Loans Received from Videocon Mauritius Energy Limited Rs. 7,528.40 Million (Previous period Rs. Nil).

x) Repayment of Short Term Advances/Loans Received from Liberty Videocon General Insurance Company Limited Rs. 3.49 Million (Previous period Advances Received Rs. 3.49 Million).

xi) Increase in Other Receivables from Videocon Telecommunication Limited Rs. 161.91 Million (Previous period Rs. Nil).

xii) Decrease in Other Receivables from Videocon Hydrocarbon Holdings Limited Rs. 1,936.11 Million (Previous period Increase in Other Receivables Rs. 2,380.65 Million).

48. The Financial Institutions have a right to convert, at their option, the whole outstanding amount of term loans or a part not exceeding 20% of defaulted amount of loan, whichever is lower, into fully paid up Equity Shares of the Company at par on default in payments/repayments of three consecutive installments of principal and/or interest thereon or on mismanagement of the affairs of the Company.

17. The Company has prepared the Consolidated Financial Statements as per Accounting Standard (AS) 21 and accordingly the segment information as per AS-17 "Segment Reporting" has been presented in the Consolidated Financial Statements.

18. Previous period figures have been reclassified, restated, recasted to conform to the classification of the current period.


Jun 30, 2013

1. ADDITIONAL NOTES TO FINANCIAL STATEMENTS

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

1.2 The Company has kept the investment activities separate and distinct from other businesses. Consequently, all the income and expenditure pertaining to investment activities have been allocated to the Investments and Securities Division and the income/(loss) after netting of the related expenditure has been shown as "lncome/(Loss) from Investments and Securities Division" under "Other Income" which includes in respect of the long term investments, dividend of Rs. 1.89 Million (Previous year Rs. 6.63 Million), interest on bonds of Rs. 6.96 Million (Previous year Rs. 4.23 Million), profit on sale/disposal of investments of Rs. 43.05 Million (Previous year loss of Rs. 46.29 Million) and in respect of current investments, dividend of Rs. 0.27 Million (Previous yearRs. Nil).

2. There were certain disputes with the Government r." ¦. :¦:-<. ^COI") with respect to the Production Sharing Contract dated Rs. - ''¦ C . obe.. 1994 ("Ravva PSC") pertaining to Ravva Oil & Gas Field wh;cii were referred to international arbitration for resolution. The Arbitral "rr,t>unal has issued a Partial Award and is still seized of the matter and is yet to issue a Final Award, other than for the dispute relating to Base Development Costs ("BDC") for which a final award was issued on 18th January, 2011 substantially in favour of the Company. Issue relating to deductibility of ONGC Carry Costs arising out of the Partial Award was appealed by the GOI before the Malaysian Appellate Authorities which has since been rejected (on grounds, inter-alia, of jurisdiction and maintainability) by such authorities and is now before the final appellate authority i.e. the Federal Court of Malaysia. Issue relating to deductibility of the BDC was appealed by the GOI before the Malaysian Appellate Authority which has since been rejected by such authority and is now before the Court of Appeal at Malaysia. Pending final resolution of the disputes, certain amounts have been short paid by GOI Nominees which have been disputed by the Company and the Company is seeking refund of amounts excessively deducted. Based on legal advice, the Company believes its contentions will be upheld. Any further sum required to be paid or returnable in respect of such disputes in accordance with the determination of the amount by the Hon''ble Arbitral Tribunal/relevant courts in this regard shall be accounted for on the final outcome in those matters.

3. The Company alongwith 12 other affiliates/entities (collectively referred to as ''Obligors'' or individually as ''Borrower'') executed Facility Agreement with the consortium of existing domestic rupee term lenders, under the obligor/co-obligor structure, wherein all the Rupee Term Loans of the Obligors are pooled together. The Borrower entities are Videocon Industries Limited, Value Industries Limited, Trend Electronics Limited, KAIL Limited, Millennium Appliances India Limited, Applicomp (India) Limited, Sky Appliances Limited, Techno Electronics Limited, Century Appliances Limited, PE Electronics Limited, Next Retail India Limited, Evans Fraser and Co. (India) Limited and Videocon International Electronics Limited. As per the said Facility Agreement, the Company is agent of the Obligors and has been referred to as ''Obligor Agent''. The Rupee Term Loans have to be utilised for the purpose mentioned in the Facility Agreement which is mainly for refinancing of existing Rupee Term Loans of the Obligors. Accordingly, the Rupee Term Loans of Rs. 20,439.54 Million have been allocated to respective Obligors based on their outstanding amount as on 31 st December 2011. As the Company is a co-obligor, it is contingently liable in respect of the borrowings of other Obligors/Borrowers to the extent cf c jtstanding balance of Rupee Term Loans as on 30th June, 2013 of Rs. 20,307 40 Million (Previous year Rs. Nil).

4. The Consortium of various banks have sanctioned the Letter of Comfort (LoC)/Stand-by Letters of Credit (SBLC) facility to the Company and its subsidiary Videocon Oil Ventures Limited (VOVL) (collectively referred to as ''Obligors'') to secure the foreign currency facility raised / to be raised by Videocon Hydrocarbon Holdings Limited (VHHL), an overseas subsidiary, from its lenders. The LoC/SBLC facility is secured by first ranking pledge of 100% shares of VOVL, VHHL and shares of certain subsidiaries of VHHL, charge over their fixed assets, VHHL''s share of cash flows from identified oil & gas assets through escrow of receivables, first ranking / exclusive charge on specified bank accounts for the benefit of the relevant LoC/SBLC provider, exclusive charge on oil & gas facility servicing account of Obligors set-up under the onshore Trust and Retention Accounts, negative lien for shares of other subsidiaries of VHHL viz. Videocon JPDA 06-103 Limited and Videocon Australia WA-388P Limited, first pari-passu charge on Videocon brand and personal guarantees of Mr. Venugopal N. Dhoot, Mr. Pradipkumar N. Dhoot and Mr. Rajkumar N. Dhoot. However, charge has not been created in favor of Consortium of banks (A) for the credit facility to the Obligors on the assets by way of pledge of shares of the subsidiaries viz. Videocon Mauritius Energy Limited and Videocon Mozambique Rovuma 1 Limited which have been pledged to Standard Chartered Bank for the loans availed by VHHL; (B) for any other receivables from Videocon Mozambique Rovuma 1 Limited and (C) on any assets of Videocon Mozambique Rovuma 1 Limited.

Accordingly, the Company is contingently liable in respect of the LoC/ SBLC facility of VOVL to the extent of Rs. 69,933.48 Million (Previous year Rs.Nil).

5. The Company has, directly and through its subsidiaries, made investments aggregating to Rs. 49,337.50 Million and also given advances ofRs. 782.74 Million to Videocon Telecommunications Limited (VTL), the subsidiary. VTL was granted the license for providing Unified Access Services (UAS) in 21 circles by the Department of Telecommunications, Government of India (DoT) in 2008 and was also allotted spectrum in 20 circles. The Hon''ble Supreme Court of India, vide its judgment dated 2nd February, 2012, quashed all the UAS licenses granted on or after 10th January, 2008 and the subsequent allocation of spectrum to these licensees, which also include the 21 UAS licenses granted to VTL and the spectrum allotted to it. The Hon''ble Supreme Court of India, also directed the Telecom Regulatory Authority of India (TRAI) to make fresh recommendations for grant of licenses and allocation of spectrum and the Central Government to grant fresh licenses and allocation of spectrum by auction thereafter.

The Central Government conducted the auction of spectrum in November, 2012. VTL participated in the auction and has been declared as a successful bidder in 6 circles and has been awarded spectrum in these circles. VTL is continuing its business as a going concern. As VTL has huge accumulated losses, its ability to continue as going concern is dependent on its ability to fund its operating requirements. VTL is confident of mobilizing necessary resources for continuing its operations as per the business plan. Accordingly, in the opinion of the management, no provision is required for diminution in the value of aforesaid investments and advances to VTL.

6. A) Unincorporated Joint Ventures:

The Financial Statements reflect the share of the Company in the assets and the liabilities as well as the income and the expenditure of Joint Venture Operations on a line-by-line basis. The Company incorporates its share in the operations of the Joint Venture based on statements of account received from the Operator. The Company has, in terms of Significant Accounting Policy No. 1 (E), recognised abandonment costs based on the technical assessment of current costs as cost of producing properties and has provided depletion thereon under ''Unit of Production'' method as part of Producing Properties in line with Guidance Note on Accounting of Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

i) The Company has participating interest of 25% in Ravva Oil and Gas Field Joint Venture (JV) through a Production Sharing Contract (PSC). Other members of the JV are Oil and Natural Gas Corporation Limited, Cairn India Limited (formerly Cairn Energy India Pty Limited) and Ravva Oil (Singapore) Pte. Limited. The parties have pursuant to the PSC, entered into a Joint Operating Agreement. Cairn India Limited is now the Operator (Cairn Energy India Pty Limited was the Operator upto 15th October, 2012).

ii) The Company had participating interest of 8.4% in Block WA-388-P in xploration permit for a term of 6 years from 28th August, 2006. The Joint Venture (JV) comprised of the Company, Oilex Limited, Gujarat State Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Sasol Petroleum Australia Limited and Apache Northwest Pty Limited ("Apache"). Apache was the Operator with 40% interest in JV. The Petroleum Exploration Permit WA-388-P expired on 27th August, 2012 and ceased to be inforce.

B) Incorporated Jointly Controlled Entities:

i) Videocon Infinity Infrastructures Private Limited is a 50 : 50 Joint Venture Company incorporated in India, with Infinity Infotech Parks Limited to carry on the business of infrastructure development like construction of IT/ITes Parks, Biotech Parks etc. The Joint Venture Company has not commenced its commercial operations.

C) The estimated amount of commitment of the Company towards contribution in various Joint Ventures for next year based on minimum work program is Rs. 3,656.49 Million (Previous year Rs. 239.96 Million).

7. The outstanding balances of certain Trade Receivables, Trade Payables, Deposits, Advances and Other Current Assets/Liabilities are subject to confirmation and reconciliation, if any. However, in the opinion of the management, adjustment, if any, will not be material.

8. In the opinion of the Board, the value on realisation of Current Assets, Loans and Advances in the ordinary course of the business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

9. There are no amounts due and outstanding, to be credited to the Investor Education and Protection Fund.

10. Related Party Disclosures:

As required under Accounting Standard 18 on "Related Party Disclosures", the disclosure of transaction with related parties as defined in the Accounting Standard are given below:

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

i) Subsidiaries:

a) Chhattisgarh Power Ventures Private Limited

b) Eagle ECorp Limited (upto 20th June, 2013)

c) Liberty Videocon General Insurance Company Limited

d) Middle East Appliances LLC ¦

e) Pipavav Energy Private Limited

f) Prosperous Energy Private Limited

g). Videocon Electronics (Shenzhen) Limited (Chinese

Name - Weiyoukang Electronic (Shenzhen) Co., Ltd.) h) Videocon Global Limited i) Videocon Oil Ventures Limited and its subsidiaries

- Videocon Estelle Limited

- Videocon Ivory Limited

- Videocon Hydrocarbon Holdings Limited and its subsidiaries

- Videocon JPDA 06-103 Limited

- Videocon Indonesia Nunukan Inc.

- Videocon Energy Brazil Limited

- Videocon Australia WA-388-P Limited

- Oil Services International S.A.S. (Liquidated on 10th July, 2012)

- Videocon Mauritius Energy Limited (w.e.f. 17th December, 2012) and its subsidiary

- Videocon Mozambique Rovuma 1 Limited *

j) Emerald Corporate Ventures Limited (formerly Videocon Energy Ventures Ltd) (upto 20th June, 2013) and its subsidiary

- Mercury Corporate Ventures Limited (formerly Videocon Oman 56 Limited) (upto 20th June, 2013)

k) Videocon International Electronics Limited and its subsidiaries

- Jumbo Techno Services Private Limited

- Senior Consulting Private Limited

- Videocon Telecommunications Limited and its subsidiary

- Datacom Telecommunications Private Limited I) Videocon Energy Limited and its subsidiary

- Proficient Energy Private Limited and its subsidiary

- Applied Energy Private Limited and its subsidiaries

- Unity Power Private Limited

- Comet Power Private Limited and its subsidiaries

- Indigo Energy Private Limited (w.e.f. 16th January, 2012)

- Percept Energy Private Limited (w.e.f. 16th January, 2012)

* Videocon Mozambique Rovuma 1 Limited was a wholly owned subsidiary of Videocon Hydrocarbon Holdings Limited upto 27th December, 2012. It became a wholly owned subsidiary of Videocon Mauritius Energy Limited w.e.f. 28th December, 2012.

ii) Associates and Joint Ventures''.

Goa Energy Private Limited - Associate - 26% (upto 1 st March, 2012)

Northwest Energy Private Limited - (Associate of Proficient Energy Private Limited - 47%, upto 7th January, 2013)

Radium Energy Private Limited - Associate - 26%

Videocon Infinity Infrastructure Private Limited - Joint Venture - 50%

IBV Brasil Petroleo Limitada - (50% Joint Venture of Videocon Energy Brazil Limited)

iii) Key Management Personnel:

Mr. Venugopal N. Dhoot - Chairman & Managing Director

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

14th August, 2012)

Mr. Sunil Kumar Jain - Senior Vice President

Mr. Shekhar Jyoti- Vice President

Mr. Chandramani M. Singh- Vice President

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

March, 2013)

Mr. Abhijit Kotnis - Vice President

Mr. Arun Pal - Vice President

C) Material transactions with Related Parties during the period are:

i) Revenue from Operations from Videocon Telecommunications Limited Rs. 51.21 Million (Previous year Rs. 335.80 Million on high seas basis).

ii) Other Income received from Videocon Hydrocarbon Holdings Limited Rs. 2,225.27 Million (Previous year Rs. Nil).

iii) Reimbursement of Expenses from Videocon International Electronics Limited Rs. 4,456.13 Million (Previous year Rs. Nil), Videocon Hydrocarbon Holdings Limited Rs. 695.24 Million (Previous year Rs. Nil) and Videocon Oil Ventures Limited X 741.11 Million (Previous yearRs. Nil).

iv) Subscription to Shares of Videocon International Electronics Limited Rs. 10,000.00 Million (Previous year Rs. Nil), Videocon Telecommunications Limited net of Share Application Money Rs. 3,264.55 Million (Previous year Rs. Nil) and Liberty Videocon General Insurance Company Limited Rs. 2,749.90 (Previous year Rs. 49.10 Million). Refund of Share Application Money from Videocon Oil Ventures Limited Rs. 9,000.00 Million (Previous year Rs. Nil) and Chhattisgarh Power Ventures Private Limited Rs. 1,000.00 Million (Previous yearRs. Nil).

v) Long Term Advances/Loans Given to Videocon International Electronics LimitedRs. 19,103.13 Million (Previous year 2,444.64 Million) and Videocon Oil Ventures Limited Rs. 9,713.01 Million (Previous year Rs. 5,296.22 Million).

vi) Short Term Advances/Loans Given to Videocon Hydrocarbon Holdings Limited Rs. 2,380.65 Million (Previous year Rs. Nil) and Chhattisgarh Power Ventures Private Limited Rs. 536.92 Million (Previous yearRs. Nil).

vii) Long Term Advances/Loan Received back from Videocon Telecommunications Limited Rs. 16,415.97 Million (Previous year Rs.Nil).

viii) Short Term Advances/Loan Received back from Videocon Global Limited Rs. 9,993.30 Million (Previous years Rs. Nil) and Videocon Energy Ventures Limited Rs. 1,340.50 Million (Previous yearRs. Nil).

ix) Short Term Advances/Loans Received from Liberty Videocon General Insurance Company Limited Rs. 3.49 Million (Previous year Rs. Nil) and Videocon Global Limited Rs. 1.64 Million (Previous yearRs. Nil).

x) Repayment of Short Term Advances/Loans Received from Proficient Energy Private Limited Rs. 62.96 Million (Previous year Rs. Nil) and Videocon Electronics (Shenzen) Limited Rs. 13.99 Million (Previous yearRs. Nil).

11. a) The Financial Institutions have a right to convert, at their option, the whole outstanding amount of term loans or a part not exceeding 20% of defaulted amount of loan, whichever is lower, into fully paid up Equity Shares of the Company at par on default in payments/repayments of three consecutive installments of principal and/or interest thereon or on mismanagement of the affairs of the Company.

b) The Financial Institutions have a right to convert at their option, the whole or a part of outstanding amount of Preference Shares, into fully paid up Equity Shares of the Company as per SEBI guidelines, on default in payment of dividend or a default in redemption of Preference Shares or any combination thereof.

12. The Company has prepared the Consolidated Financial Statements as per Accounting Standard (AS) 21 and accordingly the segment information as per AS-17 "Segment Reporting" has been presented in the Consolidated Financial Statements.

13. These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. The figures for the current period are for a period of 18 months as against 12 months in previous year and hence are not comparable. Previous year figures have been reclassified, restated, recasted to conform to the classification of the current period.


Dec 31, 2011

(Rs in Million) As at As at 31st Dec., 31st Dec., 2011 2010

1. Contingent Liabilities not provided for:

a) Letters of Guarantees 76,432.95 47,465.62

b) Letters of Credit opened including 29,921.44 17,806.63 standby letters of credit

c) Customs Penalty 6.00 11.00

d) Customs Duty demands under dispute 441.02 400.74 [Amount paid under protest Rs 0.07 Million (Previous period Rs 0.07 Million)]

e) Income Tax demands under dispute 494.74 351.13

f) Excise Duty and Service Tax demand 610.88 324.55 under dispute [Amount paid under protest Rs 4.21 Million (Previous period Rs 4.21 Million)]

g) Sales Tax demands under dispute 919.84 108.04 [Amount paid under protest Rs 360.08 Million (Previous period Rs 30.92 Million)]

h) Others 1,062.64 422.30 [Amount paid under protest Rs 50.00 Million (Previous period Rs 50.00 Million)]

i) Show Cause Notices (SCNs) have been served on the Operator of the Ravva Oil & Gas Field Joint Venture (Ravva JV) for non payment of Service Tax and Educational Cess on various services for the period July 2003 to 31st March, 2011. The amount involved relating to Ravva Block is Rs 412.56 Million (Previous period Rs 420.55 Million).

The Operator is contesting the SCNs/demands before Commissioner of Service Tax and has filed writ petition before Hon'ble High Court of Madras challenging service tax demands on some of the services and believes that its position is likely to be upheld. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may result has been made in the accounts as the same is subject to agreement by the members of the Joint Venture. Should it ultimately become payable, the Company's share as per the participating interest would be upto Rs 103.14 Million (Previous period Rs 105.14 Million).

j) Disputed Income Tax demand amounting to Rs 22.29 Million (Previous period Rs 22.29 Million) in respect of certain payments made by Ravva

Oil & Gas Field Joint Venture is currently pending before the Hon'ble High Court of Madras. The ultimate outcome of the matter cannot presently be determined and no provision for any liability that may result has been made as the same is subject to agreement by the members of the Joint Venture. Should it ultimately become payable, the Company's share as per the participating interest would be upto Rs 5.57 Million (Previous period Rs 5.57 Million).

2. a) There is a dispute regarding the deductibility of certain cost in the computation of post tax rate of return. A Partial/Interim Award was issued by an International Arbitration Tribunal under the UNCITRAL Rules on 31st March, 2005 in favour of the Company in respect of a dispute between the Company and Government of India ("GOI") inter- alia regarding deductibility of Oil and Natural Gas Corporation Limited Carry costs ("ONGC Carry") while computing the Post Tax Rate of Return ("PTRR") under the Ravva Production Sharing Contract ("PSC"). However, the Company and the GOI were not able to agree upon the amounts due to /payable by the Company in terms of the Partial/Interim Award, and therefore the Company on 7th July, 2005 filed Interim Applications before the Arbitral Tribunal seeking a determination of the amounts due to/payable by the Company on the basis of the calculations made by the Company in these Applications and interest payable/receivable on such final determined amounts. The said Partial/ Interim Award was challenged by GOI on 10th May, 2005 before the High Court in Malaysia with a prayer for setting aside the Partial Award dated 31st March, 2005. The Company challenged the jurisdiction of the High Court in Malaysia and therefore the maintainability of such a proceeding before that Court. The High Court in Malaysia, by a pronouncement dated 5th August, 2009, upheld the contentions of the Company and dismissed the challenge filed by the GOI to the Award dated 31st March, 2005 on the ONGC Carry issue. The GOI filed a Notice of Appeal in December, 2010 before the Appellate Court at Malaysia. The Company has also moved an application on 13th October, 2009 before the High Court of Justice, Queen's Bench Division, Commercial Court at London seeking a declaration that the Seat of the arbitration in respect of the said Arbitration matter between the Company and the GOI is London, England.

b) GOI has filed OMP 255 of 2006 dated 30th May, 2006 before the Hon'ble Delhi High Court under section 9 of the Arbitration and Conciliation Act, 1996, seeking a declaration that the seat of the arbitration as regards the disputes between the Company and the GOI is Kuala Lumpur and not London. The Hon'ble Arbitral Tribunal vide its' letter dated 11th April, 2007 has indicated that it shall continue with the arbitration proceedings, in respect of the disputes referred above, after receiving the judgement of the Hon'ble Delhi Court in OMP 255 of 2006. The Hon'ble Delhi High Court has held, vide judgement dated 30th April, 2008, that it has the jurisdiction to hear the matters arising out of arbitration process and that the matter be heard on merits as against the Company's contention that the said petition itself was not maintainable. The Company has, in this respect, filed Special Leave Petition (SLP) (Civil) No. 16371 of 2008 before the Hon'ble Supreme Court of India to decide the issue of maintainability of OMP 255 of 2006. The Hon'ble Supreme Court, after hearing the Parties, has on 11 th May, 2011, passed judgement in the matter allowing the Company's SLP while setting aside the judgement dated 30th April, 2008 of the Hon'ble Delhi High Court and dismissing OMP No. 255 of 2006.

c) GOI has filed Suit being C.S. (OS) No. 3314/2011 dated 22nd December, 2011 before the High Court of Delhi seeking, inter alia, an injunction against the Company from proceeding with the English Court Proceedings filed by the Company, inter alia, on the ground that the judgment of the Hon'ble Supreme Court of India dated 11th May, 2011 observing that seat of arbitration remains at Kuala Lumpur cannot be the subject matter of any further adjudication in any court whatsoever including the High Court of Justice, Queens Bench Division, Commercial Court, London. On 23rd December, 2011, after hearing parties, the Delhi High Court passed an ad-interim order to the effect, inter alia, that the parties shall not take any further steps in the English Court Proceedings. The Delhi High Court by judgment dated 5th March, 2012 passed in I.A. No.21069 of 2011 in C.S. (OS) No. 3314 of 2011, passed an interim injunction restraining the Company from proceeding with the English Court Proceedings. The Company has filed an Appeal against the judgment dated 5th March, 2012 being F.A.O. (OS) No. 132 of 2012 before Divisional Bench, Delhi High Court, which has been admitted and is listed for hearing on 27th August, 2012.

d) In the Appeal filed by the GOI before the Court of Appeal, Malaysia, the GOI has filed a notice of motion to amend the grounds of appeal. The amendment is sought on the GOI's submission that the judgement dated 11th May, 2011 of the Supreme Court of India is res-judicata between the parties on the issue of seat of arbitration. The Court of Appeal has granted permission to the Company to file reply and the Company has filed its reply to the Applications and Affidavits. The matter is next listed for hearing before the Court of Appeal on 18th June, 2012.

e) There is a dispute with regards to conversion of US$ into Indian Rupees for payment of invoice for sale of crude. A dispute regarding the rate of conversion from US$ into Indian rupees applicable to the Nominees of the GOI for the purpose of payment of amount of the invoices for sale of the Crude Oil by the Company under the Ravva PSC was referred to an International Arbitral Tribunal under the UNCITRAL Rules in accordance with the provisions of the Ravva PSC. The Tribunal by its Partial / Interim Award dated 31st March, 2005 held that the payment to the Company should be made after converting the US$ amount into Indian Rupees at the average of the State Bank of India TT Buying and TT Selling Rate (the "Middle Rate"). While accepting the said Award, the Company has worked out and submitted a computation on 30th June, 2005 to GOI indicating the amount receivable at Rs 121.43 Million being the amount short paid by GOI nominees up to 19th June, 2005 and interest thereon also calculated up to 19th June, 2005. The Company further sent various communications updating its claim receivable from GOI Nominees. The last updated claim was made vide its' letter dated 31st January, 2012 wherein total amount receivable from GOI Nominees is computed at Rs 839.70 Million, being the amount short paid by GOI Nominees up to 31st December 2011 including interest thereon of Rs 120.10 Million also calculated up to 31st December, 2011. The payments to be made by the GOI's nominees in terms of the Award dated 31st March, 2005 is also pending before the Arbitral Tribunal in terms of the Interim Applications filed. The GOI has filed an Original Miscellaneous Petition (OMP) 329 of 2006 dated 20th July, 2006 before Hon'ble Delhi High Court challenging the award in respect of this issue. Another OMP 223 of 2006 dated 9th May, 2006 has been filed by GOI's nominees HPCL and BRPL in the Hon'ble Delhi High Court challenging the Partial Award dated 31st March, 2005 in respect of Conversion/ Exchange Rate Matter. The Hon'ble Delhi High Court has on 31st October, 2011 reserved its judgement in respect of both OMP 223 of 2006 and OMP 329 of 2006. The Ministry of Petroleum and Natural Gas (MoPNG) vide its letter dated 11th October, 2011, advised the GOI nominees to make payment against the amounts claimed by the Company on ad-hoc basis after obtaining appropriate indemnity from the Company. Accordingly, during the year such short payment of Rs 719.60 Million calculated till 31st December, 2011, has been accounted for as Sales/Income from Operations and amount of Rs 120.10 Million has been recognised as Interest. However, the GOI nominees have not released such amounts as yet and continue to make payments at the exchange rate without considering the directives of the Hon'ble Arbitral Tribunal and the MoPNG in this regard.

f) In respect of disputes with regards to additional profit petroleum, the GOI had vide its' letter dated 3rd November, 2006 raised a collective demand of Rs 334.13 Million on account of additional profit petroleum payable and interest on delayed payments of profit petroleum calculated up to 30th September, 2006 pursuant to the Partial Arbitral Award dated 31st March, 2005 in the Dispute stated above and Interim Award dated 12th February, 2004 and Partial Award dated 23rd December, 2004. The Company has disputed such demand and is instead seeking refund of US$ 16.70 Million equivalent to Rs 668.67 Million already excess paid by the Company to the GOI with interest thereon. Subsequently, GOI has in June 2008 through its Nominees deducted a further sum of Rs 372.21 Million being its' claim of additional profit petroleum and interest on delayed payment of profit petroleum computed up to 30th April, 2008. Such deduction, also being in contravention of the above referred Arbitral Awards, is disputed by the Company.

g) Dispute with regards to quantum allowed as the Base Development Costs (the "BDC") and consequent effect of the same to additional profit petroleum payable on account of disputed BDC was referred to international arbitration. The GOI had contended that the Contractors had claimed BDC to the extent of US$ 499 Million which is in excess of the admissible BDC of US$ 261.57 Million thus impacting the profit petroleum figures for the period upto FY 2008-09. The GOI had contended that it was eligible for sharing profit petroleum, to be calculated each year upto FY 2008-09 in respect of excessive BDC claimed by the Contractors. The Hon'ble Arbitration Tribunal has passed the Arbitral Award on 18th January, 2011 substantially in favour of the Company. However, the Arbitration Tribunal held that the GOI is entitled to be credited by the Contractors with US$ 22.31 Million (out of which the Company's share is US$ 5.58 Million being 25% of US$ 22.31 Million) in the final settlement of cost recovery accounts in relation to Development Costs incurred during contract year 1994-95 to 1999-2000 in excess of US$ 198.43 Million. Accordingly the Operator on behalf of the Company has revised the cost recovery accounts statement and calculation of the Companies' PTRR, in the DGH format, for the years 1997-98 till 2009-10, based on the findings of the Arbitration Award, and such revised statements are submitted on 29th April, 2011. The GOI has not yet responded to such communication of the Operator. Instead, the GOI has preferred an appeal against the said Arbitral Order before the Hon'ble Malaysian Federal Court at Kuala Lumpur in April 2011 and also before the Hon'ble High Court of Delhi in April 2011 seeking quashing of the Arbitral Award. The Hon'ble High Court of Delhi has vide its judgement dated 25th April, 2012 dismissed such petition. Also, the Contractors (including the Company) had filed an Anti-Suit application before the Hon'ble Malaysian Federal Court at Kuala Lumpur in June 2011 which has since been dismissed. The Contractors (including the Company) has filed an appeal against such order and the same is listed for case management on 1st June, 2012.

Any further sum required to be paid or returnable in respect of dispute referred above at (a) to (g) in accordance with the determination of the amount by the Hon'ble Arbitral Tribunal/relevant courts in this behalf shall be accounted for on the final outcome in those matters.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 772.79 Million (Previous period Rs 274.67 Million).

4. Capital Work-in-Progress includes advances for capital assets of Rs 466.35 Million (Previous period Rs 2,120.97 Million) and interest and other finance charges capitalised during the year Rs 827.97 Million (Previous period Rs 1,082.45 Million).

5. Secured Loans

a) The Non-Convertible Debentures are secured by first charge on immovable and movable properties, both present and future, subject to prior charge on specified movables created/to be created in favour of Company's Bankers for securing borrowings for working capital requirements, and ranking pari-passu with the charge created/ to be created in favour of Financial Institutions/Banks in respect of their existing and future financial assistance. Also guaranteed by Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

The Debentures are redeemable at par on 1st January, 2012.

b) The Term Loans are secured by mortgage of immovable assets, existing and future, of the Company and a floating charge on all movable assets, present and future, except book debts, subject to prior charge of the Bankers on stock of raw materials, finished, semi finished goods and other movables, for securing working capital loans in the ordinary course of business, and exclusive charge created on specific items of machinery financed by the respective lenders. The above charges rank pari-passu inter-se for all intents and purposes. The above loans are guaranteed by Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

A part of loans from banks are secured by first pari-passu charge on book debts of consumer electronics and home appliances division which are not charged to bankers for securing working capital loans.

A part of loans from banks are secured by the assignment of fixed and floating charge on all moneys received/to be received by the Company in relation to and from the Ravva Joint Venture, including all receivables of the Ravva Oil and Gas field, subject to the extent necessary, to the charge in favour of the Joint Ventures in terms of the Production Sharing Contract/Joint Operating Agreement in respect of Ravva Joint Venture; and the assignment/fixed and floating charge of all the right, title and interest into and under all project documents, including but not limited to all contracts, agreements or arrangements which the Company is a part to, and all leases, licenses, consents, approvals related to the Ravva Joint Venture, insurance policies in the name of the Company, in a form and manner satisfactory to the Trustee.

A part of loan is secured by Equitable Mortgage on pari-passu basis on immovable property situated at Videocon Tower, New Delhi and Equitable Mortgage on pari-passu basis on immovable property including land, building and machinery situated at Village Manjra, Warora, Dist. Chandrapur.

A part of loan is secured by mortgage of immovable assets and first charge on movable assets, cash flows and intangible assets pertaining to the 5.75 MW Multi Crystelline Silicon Photovoltaic Technology Project at Warora.

Some of the loans are also secured by pledge of certain investments of the Company.

c) External Commercial Borrowings are secured by a first ranking pari-passu charge over all the present and future movable and immovable fixed assets. The loan is further secured by personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

d) Vehicle Loans from Banks are secured by way of hypothecation of Vehicles acquired out of the said loan. The loans are also secured by personal guarantee of Mr. Venugopal N. Dhoot.

e) Working Capital Loans from Banks are secured by hypothecation of the Company's stock of raw materials, packing materials, stock-in- process, finished goods, stores and spares, book debts of Glass Shell

Division only and personal guarantees of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.

6. Unsecured Loans

a) Unsecured Rupee Loans from Banks are guaranteed by Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot, the directors of the Company.

b) The Company has availed interest free Sales Tax Deferral under Special Incentive to Prestigious Unit (Modified) Scheme. Out of total outstanding, Rs 31.02 Million is repayable in two equal annual installments commencing from 30th May, 2012, Rs 8.78 Million is repayable in seven monthly installments commencing from 20th October, 2013, Rs 12.48 Million is repayable in seven monthly installments commencing from 20th October, 2014 and Rs 4.16 Million is repayable on 31st March, 2016.

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

i) The Bonds are convertible at the option of the bondholders at any time on or after 25th January, 2011 to 7 days before maturity date i.e. 16th December, 2015, at a fixed exchange rate of Rs 45.255 per 1 US$ and at initial conversion price of Rs 239.5265 per share being at premium of 3% over reference share price. The conversion price will be subject to adjustment for, among other things, subdivision or consolidation of shares, rights issues, capital distributions, stock dividends and other dilutive events.

ii) The Bonds are redeemable in whole but not in part at the option of the Company on or after 15th December, 2013, if the closing price of shares for each of the 30 consecutive trading days prior to the date on which notice of such redemption is given was at least 130% of the conversion price.

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

8. The Company has made a provision of Rs 1,295.40 Million (Previous period Rs 1,810.00 Million) towards Current Income Tax, after taking into consideration the benefits admissible under the provisions of the Income Tax Act, 1961. The Company has also made a provision of Rs 1.14 Million (Previous period Rs 1.25 Million) towards Wealth Tax. The same are, in the opinion of the Management, adequate.

9. The Company has, directly and through its subsidiaries, made investments of Rs 15,000.00 Million, given share application money of Rs 5,000.00 Million and advanced loans of Rs 19,620.84 Million to Videocon Telecommunications Limited (VTL), the subsidiary. VTL was granted Unified Access Services (UAS) Licenses in 21 circles on 10th January, 2008 and had also been allotted spectrum in 20 circles out of which it has launched its services in 16 circles.

The Hon'ble Supreme Court of India, vide its judgment dated 2nd February, 2012 in two separate writ petitions filed by Centre for Public Interest Litigation and by another, has quashed all the UAS licenses granted on or after 10th January, 2008 and the subsequent allocation of spectrum to these licencees. This includes the 21 licenses issued to VTL and the spectrum allotted to it in 20 circles.

The Hon'ble Supreme Court of India had directed that its aforesaid order shall be operative after four months from 2nd February, 2012. On 24th April, 2012, the Hon'ble Supreme Court of India modified its order and postponed the operation of its order of quashing the Telecom Licenses and related allocation of spectrum to 7th September, 2012. The Hon'ble Supreme Court of India has, vide order dated 2nd February, 2012, also directed TRAI to make fresh recommendations for grant of licenses and allocation of spectrum and the Central Government to grant fresh licenses and allocation of spectrum by auction thereafter. The Central Government has announced that it will complete the auction of licenses and related spectrum on or before 31st August, 2012.

Pending the fresh auction as mentioned above, VTL is continuing its business. It proposes to participate in the fresh auction and is hopeful of continuing the business thereafter. Accordingly, in the opinion of the management, no provision is required for diminution in the value of aforesaid investments, share application money and advances.

10. a) Unincorporated Joint Ventures:

The Financial Statements reflect the share of the Company in the assets and the liabilities as well as the income and the expenditure of Joint Venture Operations on a line-by-line basis. The Company incorporates its share in the operations of the Joint Venture based on statements of account received from the Operator. The Company has, in terms of Accounting Policy No. A-5 above, recognised abandonment costs based on the technical assessment of current costs as cost of producing properties and has provided depletion thereon under 'Unit of Production' method as part of Producing Properties in line with Guidance Note on Accounting of Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

i) The Company has participating interest of 25% in Ravva Oil and Gas Field Joint Venture (JV) through a Production Sharing Contract (PSC). Other members of the JV are Oil and Natural Gas Corporation Limited, Cairn Energy India Pty Limited and Ravva Oil (Singapore) Pte. Limited. The parties have pursuant to the PSC, entered into a Joint Operating Agreement. Cairn Energy India Pty Limited is the Operator.

ii) The Company has participating interest of 8.4% in Block WA- 388-P in exploration permit for a term of 6 years from 28th August, 2006. The Joint Venture (JV) comprises of the Company, Oilex Limited, Gujarat State Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Sasol Petroleum Australia Ltd and Apache Northwest Pty Limited ("Apache"). Apache is the Operator with 40% interest in JV. The Capital Commitments based on estimated minimum work programme in relation to it's participating interest is Rs 1.96 Million (Previous period Rs 7.69 Million).

b) Incorporated Jointly Controlled Entities:

i) Videocon Infinity Infrastructures Private Limited is a 50 : 50 Joint Venture Company incorporated in India, with Infinity Infotech Parks Limited to carry on the business of infrastructure development like construction of IT/IT es Parks, Biotech Parks etc. The Joint Venture Company has not commenced its commercial operations. The capital commitment of Videocon Infinity Infrastructures Private Limited is Rs 93.75 Million (Previous period Rs Nil).

11. The Company has kept the investment activities separate and distinct from the normal business. Consequently, all the income and expenditure pertaining to investment activities have been allocated to the Investments and Securities Division and the income/(loss) after netting of the related expenditure has been shown as "Income/(Loss) from Investments and Securities Division" under "Other Income" which includes in respect of the long term investments, dividend of Rs 6.63 Million (Previous period Rs 8.50 Million), loss on sale/ disposal of investments of Rs 46.29 Million (Previous period Rs 2.98 Million), interest on debentures/bonds of Rs 4.23 Million (Previous period Rs 86.27 Million) and in respect of current investments, dividend of Rs Nil (Previous period Rs 1.26 Million).

12. There are no amounts due to be credited to the Investor Education and Protection Fund.

13. In the opinion of the Board, the value on realisation of Current Assets, Loans and Advances in the ordinary course of the business would not be less than the amount at which they are stated in the Balance Sheet and the provision for all known and determined liabilities is adequate and not in excess of the amount reasonably required.

14. The Balances of some of the Debtors, Creditors, Deposits, Advances and Other Current Assets are subject to confirmation.

15. a) The Financial Institutions have a right to convert, at their option, the whole outstanding amount of term loans or a part not exceeding 20% of defaulted amount of loan, whichever is lower, into fully paid up Equity Shares of the Company at par on default in payments/repayments of three consecutive installments of principal and/or interest thereon or on mismanagement of the affairs of the Company.

b) The Financial Institutions have a right to convert at their option, the whole or a part of outstanding amount of Preference Shares, into fully paid up Equity Shares of the Company as per SEBI guidelines, on default in payment of dividend or a default in redemption of Preference Shares or any combination thereof.

16. Employee Benefits:

Disclosure pursuant to Accounting Standard (AS) 15 (Revised)

I) Defined Contribution Plans:

Amount of Rs 121.77 Million (Previous period Rs 127.07 Million) is recognised as an expense and shown under the head "Salary, Wages and Employees' Benefits" (Schedule 12) in the Profit and Loss Account.

II) Defined Benefit Plans:

a) The amounts recognised in the Balance Sheet as at the end of the year/period

i) Present Value of Defined Benefit Obligation

ii) Fair value of Plan Assets

iii) Funded Status - Surplus/(Deficit)

iv) Net Assets/(Liability)

b) The amounts recognised in Profit and Loss Account for the year/period

i) Current Service Cost

ii) Interest Cost

iii) Actuarial (Gains)/Losses

iv) Actual Return on Plan Assets

v) Total Expenses

c) The changes in Obligations during the year/period

i) Present value of Defined Benefit Obligation at the beginning of the year

ii) Current Service Cost

iii) Interest Cost

iv) Actuarial (Gains)/Losses

v) Benefit Payments

vi) Present value of Defined Benefit Obligation at the end of the year/period

d) The changes in Plan Assets during the year/period

i) Plan Assets at the beginning of the year

ii) Contribution by Employer

iii) Actual Benefit paid

iv) Plan Assets at the end of the year/period

v) Actual return on Plan Assets

e) Actuarial Assumptions

i) Discount Rate

ii) Mortality

iii) Turnover Rate

iv) Future Salary Increase

17. Related Party Disclosures:

As required under Accounting Standard 18 on "Related Party Disclosures", the disclosure of transaction with related parties as defined in the Accounting Standards are given below:

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

i) Subsidiaries:

a) Chhattisgarh Power Ventures Private Limited

b) Eagle ECorp Limited

c) Flair Energy Private Limited (w.e.f. 2nd March, 2011 to 20th October, 2011)

d) Liberty Videocon General Insurance Company Limited (w.e.f. 19th December, 2011)

e) Middle East Appliances LLC

f) Pipavav Energy Private Limited

g) Prosperous Energy Private Limited (w.e.f. 1st March, 2011)

h) Senator Energy Private Limited (upto 20th October, 2011)

i) Triumph Energy Private Limited (upto 20th October, 2011)

j) Videocon Electronics (Shenzhen) Limited

(Chinese Name - Weiyoukang Electronic (Shenzhen) Co., Ltd.)

k) Videocon Global Limited

l) Videocon Oil Ventures Limited and its subsidiaries *

- Videocon Estelle Limited (w.e.f. 14th January, 2011)

- Videocon Ivory Limited (w.e.f. 14th January, 2011)

- Videocon Hydrocarbon Holdings Limited and its subsidiaries **

- Videocon JPDA 06-103 Limited

- Videocon Mozambique Rovuma 1 Limited

- Videocon Indonesia Nunukan Inc.

- Videocon Energy Brazil Limited

- Videocon Australia WA-388-P Limited

- Oil Services International S.A.S.

m) Videocon Energy Ventures Limited and its subsidiary

- Videocon Oman 56 Limited

n) Videocon International Electronics Limited and its subsidiaries

- Jumbo Techno Services Private Limited

- Senior Consulting Private Limited

- Videocon Telecommunications Limited and its subsidiary

- Datacom Telecommunications Private Limited

o) Videocon Energy Limited and its subsidiaries

- Videocon Power Ventures Limited and its subsidiaries (upto 20th October, 2011)

- Aim Energy Private Limited (upto 20th October, 2011)

- Marvel Energy Private Limited (upto 20th October, 2011)

- Viable Energy Private Limited (upto 20th October, 2011)

- Vital Power Private Limited (upto 20th October, 2011)

- Proficient Energy Private Limited and its subsidiaries ***

- Instant Energy Private Limited (upto 20th October, 2011)

- Orchid Energy Private Limited (upto 20th October, 2011)

- Applied Energy Private Limited and its subsidiaries

- Comet Power Private Limited

- Galaxy Power Private Limited (upto 20th October, 2011)

- Percept Energy Private Limited (upto 20th October, 2011)

- Unity Power Private Limited

* Videocon Oil Ventures Limited was a subsidiary of Videocon Energy Limited up to 1st July, 2011. It became a wholly owned subsidiary of Videocon Industries Limited w.e.f. 2nd July, 2011.

** Videocon Industries Limited w.e.f. 21st December, 2010 acquired 97.54% of the share capital of Videocon Hydrocarbon Holdings Limited (VHHL). w.e.f. 12th July, 2011 VHHL became step down subsidiary of Videocon Industries Limited since Videocon Industries Limited transferred 96.54% of shareholding in VHHL to Videocon Oil Ventures Limited.

*** Proficient Energy Private Limited was a subsidiary of Marvel Energy Private Limited up to 19th October, 2011. It became a subsidiary of Videocon Energy Limited w.e.f. 20th October, 2011.

ii) Associates and Joint Ventures:

- Goa Energy Private Limited - Associate - 26%

- Radium Energy Private Limited - Associate - 26%

- Videocon Infinity Infrastructure Private Limited - Joint Venture - 50%

- IBV Brasil Petroleo Limitada - (50% Joint Venture of Videocon Energy Brazil Limited)

- Northwest Energy Private Limited - (Associate of Proficient Energy Private Limited - 47%, w.e.f. 15th September, 2011)

iii) Key Management Personnel:

- Mr. Venugopal N. Dhoot - Chairman & Managing Director

- Mr. Pradipkumar N. Dhoot - Whole Time Director

- Mr. S. K. Jain - Senior Vice President

- Mr. Shekhar Jyoti - Vice President

- Mr. C. M. Singh - Vice President (w.e.f. 1st January, 2011)

- Mr. J. R. Rathore - Senior Vice President (w.e.f. 1st January, 2011)

- Mr. Abhijit Kotnis - Vice President

C) Material transactions with Related Parties during the year are: Sales to Videocon Telecommunications Limited (on high seas basis) Rs 335.80 Million (Previous period Rs 6,338.33 Million), Instant Energy Private Limited Rs 88.95 Million (Previous period Rs Nil); Purchases from Middle East Appliances LLC Rs 89.75 Million (Previous period Rs 67.04 Million); Subscription to Shares/Share Application Money (Investments) of Videocon Oil Ventures Limited Rs 10,000.00 Million (Previous period Rs Nil), Sale of Shares of Videocon Hydrocarbon Holdings Limited to Videocon Oil Ventures Limited Rs 8,908.82 Million (Previous period Rs Nil); Interest recovered from Videocon Telecommunications Limited Rs 2,435.16 Million (Previous period Rs 459.75 Million) and Goa Energy Private Limited Rs 90.42 Million (Previous period Rs 44.63 Million); Advances/Loans given to Videocon Telecommunications Limited Rs 10,870.05 Million (Previous period Rs 681.32 Million), Videocon Oil Ventures Limited Rs 5,296.22 Million (Previous period Rs 0.43 Million), Videocon Global Limited Rs 2,840.30 Million (Previous period Rs 707.82 Million); Advances/Loans received back from Videocon Energy Limited Rs 1,939.08 Million (Previous period Rs Nil), Chhattisgarh Power Ventures Private Limited Rs 556.64 Million (Previous period Rs Nil); Advances/ Loans received from Proficient Energy Private Limited Rs 67.70 Million (Previous period Rs Nil), Videocon Electronics (Shenzhen) Limited Rs 13.99 Million (Previous period Rs Nil).

18. The Company has prepared the Consolidated Financial Statements as per Accounting Standard (AS) 21 and accordingly the segment information as per AS-17 "Segment Reporting" has been presented in the Consolidated Financial Statements.

Loans and Advances shown above, to subsidiaries fall under the category of 'Loans and Advances' in nature of Loans where there is no repayment schedule and are repayable on demand.

b) Investment by the loanee in the shares of the Company:

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

19. The figures for the current year are for a period of 12 months as against 15 months in previous period and hence, are not comparable. Figures in respect of previous period have been regrouped, reclassified and recasted wherever necessary to make them comparable with those of current year.


Sep 30, 2009

(Rs. in Million)

As at As at 30th 30th Sept., Sept., 2009 2008

1. Contingent Liabilities not provided for:

a) Letters of Guarantees 59,767.26 45,206.98

b) Letters of Credit opened 4,015.05 1,337.13

c) Customs Penalty 23.96 0.88

d) Customs Duty demands under dispute 156.09 249.49 [Amount paid under protest Rs. 0.82 million (Previous year Rs. 0.40 million)]

e) Income Tax demands under dispute 349.38 349.38

f) Excise Duty and Service Tax demand 189.37 275.57 under dispute [Amount paid under protest Rs. 4.21 milHpn (Previous year Rs, 2.87 million)]

g) Sales Tax demands under dispute 188.38 326.36 [Amount paid under protest Rs. 57.91 million (Previous year Rs. 23.96 million)

h) Others - 51.42

I) Show Cause Notices (SCNs) have been served on the Operator of the Rawa Oil & Gas Field Joint Venture (Rawa JV) for non payment of Service Tax and Educational Cess on various services for the period 16th August, 2002 to 31st March, 2009. The amount involved relating to Rawa Block is Rs. 415.28 million (Previous year Rs. 101.55 million).

The Operator Is contesting the show cause notices/demands before Commissioner of Service Tax and has filed writ petition before Honble

High Court of Chennai challenging service tax demands on same of the services and believes that its position is likely to be uphejg. The ultimate outcome of the matter cannot be presently determined and no provision for any liability that may.result has been made in the accounts as the same is subject to agreement by the members of the Joint Ventures. Should it ultimately become payable, the Companys share as per the participating interest would be upto Rs. 103.82 million (Previous year Rs. 25.38 million).

)) Ravva Oil & Gas Field Joint-Venture has received a demand notioe for Rs. 21.53 million for delay In payment of cess for the period April 2001 to February 2004. The Rawa JV fHed an appeal with Honble High Court of Andhra Pradesh and has received an interim stay order against the demand. The Ravva Oil 4 Gas Field Joint- Venture believes that its position is likely to be upheld. However, should the liability ultimately arise, the Companys share as per the participating interest would be upto Rs. 5.38 million (Previous year Rs. 5.38 million).

k) Disputed Income Tax demand amounting to Rs. 22.29 million in respect of certain payments made by Rawa Oil & Gas Field Joint Venture is currently pending before the Income Tax Appellate tribunal. The ultimate outcome of the matter cannot presently be determined and no provision for any liability that may result has been made as the same is subject to agreement by the members of the Joint Venture. Should it ultimately become payable, the Companys share as per the participating interest would be upto Rs. 5.57 million (Previous year Rs. 5.57 million).

2. a) There was a dispute regarding (i) deductibility of Oil and Natural Gas Corporation Limited Carry (ONGC Carry) while computing the Post Tax Rate of Return (PTRR) under the Rawa Production Sharing Contract (PSC); (ii) deductibility of provision of Site Restoration Costs for computation of Cost Petroleum and PTRR; (iii) deductibility of inventory purchased for computation of Cost Petroleum and PTRR; (iv) deductibility of notional Dividend Distribution Tax under Jhs Income Tax Act, 1961 for computation of PTRR; (v) deductibility of deposits, advances and pre-payments made for the purpose of Petroleum Operations in the business of Raws OH & Gas Field for computation of Cost Petroleum and PTRR; and (vi) the conversion rate to be applied by the Government of India (GOI) while converting the USD amount into Indian Rupees against the invoices raised for sale of crude oil. The Dispute was referred to an International Arbitration in accordance with the provisions of the Rawa PSC. Vide the Interim award dated 31st March, 2005, the Tribunal has upheld the Companys claims stated in (i) and (v) above whereas the claim of the Company stated in (ii), (iii) and (iv) above were rejected by the Tribunal. As regards claim stated at (vi) above, the Tribunal held that the payment to the Company is to be made after converting the USD amount into Indian Rupees at the State Bank of India MiddleRat* i.e. the average of the buying and selling rate. Further, the Supplementary Claim of the Company for payment of interest for delayed payment against invoices raised for sale of crude oil is yet to be decided by the Arbitral Tribunal. While accepting the Interim Award, the Company computed and submitted the calculation on 31st May, 2005 to GOI indicating the amount payable by theCompany after applying the said Arbitration Award at US$ 27.02 million equivalent to Rs. 1,081.88 million, which was not accepted by GOI and it claimed that the Company needs to pay US$ 43.72 million equivalent to Rs. 1,901.79 million and interest thereon applying the same Arbitration Award. Since the Company and the GOI were not able to agree upon the amounts due to/payable by the Company, the Company on 7th July, 2005 filed Interim Applications followed by an amendment application on 8th August, 2005 before the Arbitral Tribunal seeking a determination of the amounts due to/payable by the Company. The dispute between the Company and GOI with regard-to the computation of interest on delayed payment of profit petroleum to the extent of US$ 67,636 equivalent to Rs. 2.71 million is also covered. Pending the final decision of the Honble Arbitral Tribunal, the Company has accounted for and paid the sum of US$ 43.72 million equivalent to Rs. 1,901.79 million to GOI on ad hoc basis.

The GOI had further filed a Petition on 10th May, 2005 before the High Court in Malaysia challenging the Arbitration Award and praying for setting aside the Partial Award dated 31st March, 2005 only in respect of ONGC Carry issue. The Company challenged the jurisdiction of the said High Court and therefore the maintainability of such an appeal before that Court. The High Court has in this matter, by a pronouncement dated 5th August, 2009, upheld the contentions of the Company and dismissed the challenge filed by the GOI to the Award dated 31st March 2005 on the ONGC Carry issue. The GOI has filed a Notice of Appeal before the Appellate Court at Malaysia. The GOI Appeal is yet to be listed for hearing. The Company believes that its position is likely to be upheld.

b) There is a dispute regarding the rate of conversion from US$ into Indian Rupees applicable to the Nominees of the GOI for the purpose of payment of amount of the invoices for sale of the Crude Oil by the Company under the Rawa PSC. Vide the interim award dated 31st March, 2005, the, Tribunal has partly upheld the Companys claim. While accepting the Award, the Company has worked out and submitted a computation on 30th June, 2005 to GOI claiming the amount receivable at Rs. 121.43 million being the amount short paid by GOI nominees up to 19th June, 2005 and interest thereon also calculated up to 19th June, 2005. The Company further vide its letter dated 22nd August, 2005 updated its claim claiming the total amount receivable from GOI Nominees at Rs. 124.42 million being the amount short paid by GOI nominees up to 31 st July, 2005 and interest thereon also calculated up to 31st July, 2005. The Company further vide Its IStter dated 28th April, 2008 updated its claim indicating the total amount receivable from GOI Nominees at Rs. 349.85 million, being the amount short paid by GOI Nominees upto 31st March, 2008 and interest thereon also calculated up to 31 st March, 2008. On 25th November, 2009 the Company has further updated its claim in this respect vide its letter dated 25th November, 2009, wherein total amount receivable from GOI Nominees is computed at Rs. 498.15 million, being the amount short paid by GOI Nominees upto 31 st March, 2009 and interest thereon also calculated up to 31 st March, 2009. The dispute regarding the payments to be made by the GOIs nominees in terms of the Award dated 31st March, 2005 is also pending before the Arbitral Tribunal in terms of the Interim Applications filed. The GOI has filed an Original Miscellaneous Petition (OMP) 329 of 2006 dated 20th July, 2006 before Honble Delhi High Court challenging the award in respect of this Dispute. Another OMP 223 of 2006 dated May, 2006 has been filed by GOIs nominees HPCL and BRPL in the Honble Delhi High Court challenging the Partial Award dated 31st March, 2005 in respect of Conversion/Exchange Rate Matter. Both OMP 223 Of 2006 and OMP 329 of 2006 are presently sub-judice before the Honble Delhi High Court. The GOI nominees continue to make payments at the exchange rate without considering the directives of the Honble Arbitral Tribunal in this regard.

c) GO! has filed OMP 255 of 2006 dated 30th May, 2006 before the Honble Delhi High Court under section 9 of the Arbitration and Conciliation Act, 1996, seeking a declaration that the seat of the arbitration as regards the disputes between the Company and the GOI is Kuala Lurripur and not London. The Honble Arbitral Tribunal vide its letter dated 28th March, 2007 has indicated that it shall continue with the arbitration proceedings, in respect of the disputes referred above, after receiving the judgement of the Honble Delhi High Court in OMP 255 of 2006. The Honble Delhi High Court has held, vide order dated 30th April, 2008, that it has the jurisdiction to hear the matters arising out of arbitration process and that the matter be heard on merits as against the Companys contention that the said petition itself was not maintainable. The Company has, in this respect, filed Special Leave Petition (SLP) (Civil) No. 16371 of 2008 before the Honble Supreme Court of India to decide the issue of maintainability of OMP 255 of 2006. The Honble Supreme Court after hearing the Parties, has on 11th November 2009, reserved judgement in the matter. The Company believes that its position Is likely to be upheld.

d) In respect of disputes with regard to additional profit petroleum stated in (a) above, the GOI had vide its letter dated 3rd November, 2006 raised a collective demand of Rs. 334.13 million on account of additional profit petroleum payable and interest on delayed payments of profit petroleum calculated up to 30th September, 2006 pursuant to the Partial Arbitral Award dated 31st March, 2005 in the dispute stated above. Interim Award dated 12th February, 2004 and Partial Award dated 23rd December, 2004. The Company has disputed such demand and is instead seeking refund of USD 16.70 million equivalent to Rs. 668.67 million already excess paid by the Company to the GOI with interest thereon. Subsequently, GOI has in June 2008 through its Nominees deducted a further sum of Rs. 372.21 million being its claim of additional profit petroleum and interest on delayed payment of profit petroleum computed up to 30th April, 2008. Such deduction, also being in contravention of the above-referred Arbitral Awards, is disputed by the Company.

Any further sum required to be paid or returnable in respect of dispute above at (a) to (d) in accordance with the determination of the amount by Honble Arbitral Tribunal/Supreme Court/High Courts in this behalf shall be accounted for on the final outcome in this regard.

3. Estimated amount of contracts remaining to be executed on Capital account and not provided for (net of advances) Rs. 324.16 million (Previous year Rs. 528.59 million).

4. Capital Work-in-Progress includes advances for capital assets Rs. 2,465.46 million (Previous year Rs. 3,489.92 million), Interest and other finance charges capitalised during the year Rs. 883.70 million (Previous year Rs. 544.61 million).

5. The Company had, during the year 2006, issued

a) 90,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on 7th March 2011 out of which 41,820 (Previous year 41,820) Bonds are outstanding.

i) The Bonds are convertible at the option of the bondholders at any time on and after 20th March, 2006 upto the close of business on 28th February, 2011 at a fixed exchange rate of Rs. 44.145 per 1 US$ and at initial conversion price of Rs. 545.24 per share being at premium of 15% over the reference share price. The conversion price shall be adjusted downwards in the event that the average closing price of shares for 15 consecutive trading days immediately prior to the reset date is less than conversion price, subject to a floor price of Rs. 410/- as adjusted in accordance with the anti-dilution provisions.

ii) The Bonds are redeemable in whole but not in part at the option of the Company on or after 7th February, 2009 but prior to 28th February, 2011 if aggregate value on each of 30 consecutive trading days ending not earlier than 14 days prior to the date upon which notice of such redemption is given was at least 130% of the accreted principal amount.

iii) The Bonds are redeemable at maturity date i.e. on 7th March, 2011 at 116.738% of its principal amount, if not redeemed or converted earlier.

b) 105,000 Foreign Currency Convertible Bonds of US$ 1000 each (Bonds) due on 25th July, 2011 out of which 66,651 (Previous year 66,651) Bonds are outstanding.

i) The Bonds are convertible at the option of the bondholders at any time on or after 2nd September, 2006 until 18th July, 2011 except for certain closed periods, at a fixed exchange rate of Rs. 46.318 per 1 US$ and at initial conversion price of Rs. 511.18 per share being at premium of 22% over reference share price. The conversion price shall be adjusted downwards in the event that the average closing price of shares for 15 consecutive trading days immediately prior to the reset date is less than conversion price, subject to a floor price of Rs. 410/- as adjusted in accordance with the anti-dilution provisions.

ii) The Bonds are redeemable in whole but not in part at the option of the Company on or after 24th August, 2009, if aggregate value on each of 30 consecutive trading days ending not earlier than 14 days prior to the date upon which notice of such redemption is given was at least 130% of the accreted principal amount. Redeemable in whole but not in part at the option of the Company on or after 24th August, 2009, if aggregate value on each of 30 consecutive trading days ending not earlier than 14 days prior to the date upon which notice of such redemption is given was at least 130% of the accreted principal amount.

iii) The Bonds are redeemable at maturity date i.e. on 25th July, 2011 at 127.65% of its principal amount, if not redeemed or converted earlier.

6. The Company has issued and allotted 11,765,000 Warrants on 1 st June, 2009 for a consideration of Rs. 42.50 per warrant being the warrant subscription price. Each Warrant entitles the holder to subscribe to one equity share within a period of 18 months from the date of allotment at the price of Rs. 170/- per equity share. In the event, the holder of Warrant does not exercise the option within the aforesaid period, the Warrant Subscription amount in respect of such warrants shall be forfeited and the Warrants shall lapse.

7. The Company has made a provision of Rs. 880.20 million (Previous year Rs. 1,349.00 million) towards current Income Tax, after taking into consideration the benefits admissible under the provisions of the Income Tax Act, 1961. The Company has also made a provision of Rs. 1.00 million (Previous year Rs. 1.00 million) towards Wealth Tax. The same are, in the opinion of the Management, adequate.

8. The Company has reviewed fixed assets for Impairment and has identified some of the machinery and equipments, which have been impaired. Consequently, an amount of Rs. 449.45 million (Previous year Rs. 998.90 million) has been assessed as impairment loss and has been recognized in the Profit and Loss Account. The related Deferred Tax Credit of Rs. 152.77 million (Previous year Rs. 339.52 million) has been considered in the Provision for Deferred Tax in the Profit and Loss Account. Further, during the year, the Company has discarded/disposed off certain fixed assets which were out of active use and accordingly have been eliminated from the financial statements. The resultant gain or loss has been recognised in the profit and loss account.

9. Joint Venture Disclosure :

A. The Financial Statements reflect the share of the Company in the assets and the liabilities as well as the income and the expenditure of Joint Venture Operations on a line by line basis. The Company incorporates its share in the operations of the Joint Venture based on statements of account received from the Operator. The Company has, in terms of Accounting Policy No. A-5 above, recognised abandonment costs based on the technical assessment of current costs as cost of producing properties and has provided Depletion thereon under Unit of Production method as part of Producing Properties in line with Guidance Note on Accounting of Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India.

B. Unincorporated Joint Ventures:

a) The Company has participating interest of 25% in Ravva Oil and Gas Field Joint Venture (JV) through the Production Sharing Contract (PSC). Other members of the JV are Oil and Natural Gas Corporation Ltd, Cairn Energy India Pty Limited and Rawa Oil (Singapore) Pte. Ltd.

The parties have pursuant to the PSC, entered into a Joint Operating Agreement. Cairn Energy India Pty Ltd. is the Operator.

b) The Consortium comprising the Company, Oilex Oman Ltd., GAIL India Ltd., Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. has been awarded the Block #56, on the Eastern Plank of the Central Salt Producing Oil Field in Oman. The Exploration Production Sharing Agreement and Joint Operating Agreement have been executed on 28th June, 2006. 2D and 3D seismic data are being reprocessed in Permian Flank and the exploration drilling in Sarha-1 well is in progress. Two of the three exploration wells have been successfully drilled. The Participating interest of the Company in the said venture is 25%. The said interest of the Company has been, subsequent to the balance sheet date, transferred to Videocon Oman 56 Limited, a wholly owned subsidiary of Videocon Energy Ventures Limited, which, in turn is a wholly owned subsidiary of the Company. The Capital Commitments based on estimated minimum work programme in relation to its participating interest is Rs. 336.62 million (Previous year Rs. 492.18 million).

c) The Consortium comprising the Company, Oilex Ltd., Gujarat State Petroleum Corporation Ltd., Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. has been awarded Block WA- 388-P for a term of 6 years by Government of Western Australia. Joint Operating Agreement has been signed in March 2007 and acquisition of Seismic Data is in progress. A Farm-out Agreement has been entered into with Sasol Petroleum Australia Ltd. on 12th August 2008 whereby, Sasol has acquired 30% participating interest in the Block and will become operator in place of Oilex, subject to fulfillment of all obligations under the said Agreement. In return, Sasol will carry the JV partners for certain costs in respect of Rose 3D seismic data. The participating interest of the Company after this Farm-out Agreement is 14%. The Capital Commitments of the Company for next three years based on six year work programme is Rs. 450.77 million (Previous year Rs. 61.61 million).

d) The Company had 20% interest in EPP 27 offshore Otway Basin, South Australia through Joint Venture. Other members of the JV were Great Artesian Oil and Gas Ltd. (GOG), Oilex NL and Gujarat State Petroleum Corporation Ltd. Permit for the said concession has expired on 24th August, 2008. In March 2009, the JV partners have entered into a Good Standing Arrangement with the Government of South Australia committing to spend an amount of A$ 5,253,061 towards acquisition and interpretation of new geophysical and geochemical data and/or drilling activities during the first three years of new permits obtained from re-released areas. The Company has already provided for its share in the aforesaid amount, to the extent of A$ 1.58 million i.e. Rs. 62.08 million.

C. Incorporated Jointly Controlled Entities :

a) VB (Brasil) Petroleo Private Limitada ("VB Brasil") is a 50 : 50 joint venture company incorporated in Brazil with Bharat PetroResources Limited ("BPRL"), a wholly owned subsidiary of Bharat Petroleum Corporation Ltd. VB Brasil in turn holds 100% equity in IBV Brasil Petroleo Limitada (IBV) (formerly EnCana Brasil Petroleo Limitada). IBV has interests in four concessions with ten deep water offshore exploration blocks in Brazil. Petroleo Brasiliero S.A., is the operator in three of the four concessions whereas Anadarjjo Corporation U.S.A. through its Brazilian subsidiary is the operator in one concession. The pre-salt exploration programme is continuing in the deep water Campos and Espirito Santos basins, with a pre-salt discovery at the Wahoo prospect, offshore Brazil in the Campos Basin. The Capital commitment of the Company for next year based on minimum work program is Rs. 3,316.76 million.

b) Videocon Infinity Infrastructures Private Limited is a 50 : 50 Joint Venture Company incorporated in India, with Infinity Infotech Parks Limited to carry on the business of infrastructure development like construction of IT/ITes Parks, Biotech Parks etc. The Joint Venture Company has not commenced its commercial operations and has no Capital commitments as on the Balance Sheet date.

10. The Company has kept the investment activities separate and distinct from the normal business. Consequently, all the income and expenditure pertaining to investment activities have been allocated to the Investments & Securities division and the income/(loss) after netting of the related expenditure has been shown as "lncome/(Loss) from Investments & Securities Division" under "Other Income" which includes in respect of the long term investment dividend of Rs. 7.58 million (Previous year Rs. 9.88 million), gain on sale Rs. 597.60 million (Previous year Rs. 78.66 million) interest/premium on debentures/bonds Rs. 10.71 million (Previous year Rs. 3.18 million) and in respect of current Investments, dividend of Rs. 0.20 million (Previous year Rs. 2.56 million)

11. Employee Benefits:

Disclosure pursuant to Accounting Standard (AS) 15 (Revised)

I) Defined Contribution Plans :

Amount of Rs. 117.00 million (Previous year Fts. 89.11 million) is recognised as an expense and shown under the head "Salary, Wages and Employees Benefits" (Schedule 12) in the Profit and Loss Account.

12. a) The Financial Institutions have a right to convert, at their option, the whole outstanding amount of term loans or a part not exceeding 20% of defaulted amount of loan, whichever is lower, into fully paid up equity shares of the Company at par on default in payments/repayments of three consecutive installments of principal and/of interest thereon or on mismanagement of the affairs of the Company.

b) The Financial Institutions have a right to convert at their option, the whole or a part of outstanding amount of Preference Shares, into fully paid up equity shares of the Company as per SEBI guidelines, on default in payment of dividend or a default in redemption of Preference Shares or any combination thereof.

13. The Balances of some of the Debtors, Creditors, Deposits, Advances and Other Current Assets are subject to confirmation.

14. During the year, the Company has forfeited and cancelled 43,948 shares (Previous year Nil) issued on amalgamation of erstwhile Videocon International Ltd., due to non receipt of allotment and/or call money from shareholders. The amount paid-up on these shares amounting to Rs. 2.72 million has been transferred to Capital Reserve.

15. There are no amounts due to be credited to Investor Education and Protection Fund.

16. Related Party Disclosures:

As required under Accounting Standard 18 on "Related Party Disclosures", the disclosure of transaction with related parties as defined in the Accounting Standard are given below: a) List of Related Parties : i) Subsidiary Companies :

- Datacom Telecommunications Private Limited (Subsidiary of Videocon Telecommunications Limited)

- Eagle ECorp Limited

- Qodavari Consumer Electronics Appliances Private Limited

- Investcon Singapore Holdings Limited [Subsidiary of Videocon (Mauritius) Infrastructure Ventures Limited] (Upto 7th January, 2009)

- Jumbo Techno Services Private Limited (Subsidiary of Videocon International Electronics Limited) (w.e.f. 22nd September, 2009)

- Mayur Household Electronics Appliances Private Limited

- Middle East Appliances LLC

- Paramount Global Limited

- Pipavav Energy Private Limited

- Powerking Corporation Limited

- Senior Consulting Private Limited (Subsidiary of Videocon International Electronics Limited (w.e.f. 18th September, 2009)

- Sky Billion Trading Limited

- Venus Corporation Limited

- Videocon Display Research Co. Limited

- Videocon Electronics (Shenzhen) Limited (Chinese Name - Wei You Kang Electronic (Shenzhen) Co. Limited)

- Videocon Energy Brazil Limited (Formerly Videocon Global Energy Holdings Limited)

- Videocon Energy Ventures Limited

- Videocon Global Limited

- Videocon Indonesia Nunukan Inc. (w.e.f. 5th August, 2009)

- Videocon International Electronics Limited

- Videocon JPDA 06-103 Limited (Formerly Global Energy Inc.)

- Videocon (Mauritius) Infrastructure Ventures Limited (Upto 7th January, 2009)

- Videocon Mozambique Rovuma 1 Limited (Formerly Videocon Energy Resources Limited)

- Videocon Oman 56 Limited (Formerly Videocon Hydrocarbon Holdings Ltd.) (Subsidiary of Videocon Energy Ventures Limited)

- Videocon Telecommunications Limited (Formerly Datacom Solutions Ltd.) (Subsidiary of Videocon International Electronics Limited)

ii) Associates and Joint Ventures :

- Rawa Oil & Gas Field Joint Venture-Participating Interest 25%

- WA-388-P Joint Venture-Participating Interest 14%

- EPP27 Joint Venture-Participating Interest 20%

- Block 56 Oman Joint Venture - Participating interest 25%

- VB (Brasil) Petroleo Private Ltda. - Joint Venture - 50%

- IBV Brasil Petroleo Limitada (Subsidiary of VB (Brasil) Petroleo Private Ltda.)

- Videocon Infinity Infrastructure Private Limited - Joint Venture - 50%

- Goa Energy Pvt. Ltd. - (Associate w.e.f. 27th October, 2008) iii) Key Management Personnel:

- Mr. Venugopal N. Dhoot - Chairman & Managing Director

- Mr. Pradipkumar N. Dhoot - Whole Time Director

- Mr. K. R. Kim - Chief Executive Officer

- Mr. P. K. Gupta - Vice President

- Mr. Amit Gupta - Vice President

- Mr. Shekhar Jyoti - Vice President

17. The Company has prepared the Consolidated financial Statements as per Accounting Standard (AS) 21 and accordingly the segment information as per AS-17 "Segment Reporting" has been presented in the Consolidated Financial Statements.

18. Hitherto, the Company was following the "successful efforts" method of accounting in respect of oil and natural gas exploration, development and producing activities. During the year the Company has changed the method of accounting for such activities from "successful efforts" method to "full cost" method.

These activities are carried out in diverse locations, using various techniques. All costs incurred at any time and at any place in a cost centre in an attempt to add commercial reserves are an essential part of the cost of any reserves added in the cost centre. As a result they are directly associated with the enterprises reserves in that centre and all the costs should be treated as part of the cost of the mineral assets in the cost centre. The full cost method of accounting, in respect of such activities, provides better matching of income and expenses, if total costs are depreciated on pro-rata basis as the reserves in large cost centres are produced. Further, oil and gas reserves are similar to long term inventory item. Under the full cost method the annual distortions of income resulting from expensing the charges for unsuccessful pre-production activities are eliminated whereas the successful efforts method of accounting assesses success or failure too early in a project and is likely to result in an understatement of assets and net income of a growing enterprise.

In view of the above and considering the characteristics of the participating interests of the Company in joint ventures for oil and gas exploration and production in large cost centres, either directly or indirectly through subsidiaries, it has been advised to the Company that the full cost method will be more appropriate, as it provides better matching of income and expenses.

Consequent to the above change, there is no material impact on the financial statements for the year. The Production and Exploration Expenses - Oil and Gas are lower by 4.68 million and the net profit for the year, Reserves & Surplus and Capital Work-in-Progress are higher by the said amount.

19. Figures in respect of previous year have been regrouped and recasted wherever necessary to make them comparable with those of current year.

 
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