Mar 31, 2016
1 Secured Loans:
a) Rupee Term Loans from Banks
The Company along with 12 other affiliates/entities (collectively referred to as âObligorsâ and individually referred to as âBorrowerâ) 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 Value Industries Limited, Videocon Industries Limited (VIL), 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, Evans Fraser and Co. (India) Limited and Videocon International Electronics Limited.
Rupee Term Loans from Banks are secured by first pari-passu charge on all present and future tangible/intangible assets 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 Limitedâs (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 held by VIL, second pari-passu charge on VHHLâs 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 âVideoconâ brand (Also refer Note No. 35).
2 Working Capital Loans from Banks are secured against hypothecation of the Companyâs stock of raw materials, packing materials, stock-in-process, finished goods, stores and spares, book debts and other current assets of the Company. The loans are further secured by personal guarantee of Mr. Venugopal N. Dhoot, Mr. Rajkumar N. Dhoot and Mr. Pradipkumar N. Dhoot.
Note: This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such vendors/parties have been identified on the basis of information available with the Company.
3. ADDITIONAL NOTES TO FINANCIAL STATEMENTS
4 The Company has kept the investment activities separate and distinct from the normal business. Consequently, all the income and expenditure pertaining to investment activities has been allocated to the Investments and Securities Division and the income after netting off the related expenditure has been shown as âIncome from Investments and Securities Divisionâ. The Income from Investments and Securities Division include dividend on long term investments of '' Nil (Previous year '' 0.01 Million).
5. RELATED PARTY DISCLOSURES:
As required under Accounting Standard 18 on âRelated Party Disclosuresâ, 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:
Key Management Personnel:
Mr. K. K. Sukumaran - Assistant General Manager (upto 13th August,2015)
Mr. Yogesh Deshmukh- Manager (w.e.f. 14th August, 2015)
B) Material Transactions with Related Parties during the year are:
Remuneration to Key Management Personnel - '' 1.39 Million (Previous year '' 2.57 Million)
6. The Company along with 12 other affiliates/entities (collectively referred to as âObligorsâ or individually as âBorrowerâ) 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, Evans Fraser and Co. (India) Limited and Videocon International Electronics Limited. 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 31st March, 2016 of '' 192,780.96 Million (As on 31st December, 2014 of '' 195,181.84 Million).
7. The Directorate of Revenue Intelligence, Mumbai Zonal Unit (âDRIâ) has on 30th December, 2014, issued a Show Cause Notice (âSCNâ) in connection with import of Colour Picture Tubes (âCPTsâ) by the Company and other concerns. Vide SCN, the Company was called upon, amongst others, as to why the declared value of CPTs imported should not be rejected and the same should not be re-determined and why the amount of anti-dumping duty of '' 6.94 Million and penalty thereon should not be recovered under the extended period under the provisions of the Customs Act, 1962.
The Company has denied the allegation made by DRI for alleged evasion of duty. 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 and, accordingly, there is no question of duty evasion or penalty thereon and no provision has been considered in the financial statements.
8. The Company is primarily engaged in manufacturing and trading of Electrical and Electronic Appliances and there is no other reportable segment as defined in Accounting Standard 17 on âSegment Reportingâ.
9. 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.
10. In the opinion of the Board, the value on realization 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.
11. There are no amounts due and outstanding, to be credited to the Investor Education and Protection Fund.
12. The figures for the current period are for a period of 15 months whereas the figures of the previous year were for 12 months and hence are not comparable. Previous year figures have been reclassified, restated, recanted to conform to the classification of the current period.
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.
2.1 Secured Loans:
a) Rupee Term Loans from Banks
The Company alongwith 12 other affi liates/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 Value Industries Limited, Videocon Industries
Limited (VIL), 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.
Rupee Term Loans from Banks are secured by fi rst pari-passu charge on
all present and future tangible/intangible assets of each of the
Borrower, fi rst pari- passu charge on the Trust and Retention Accounts
of the Borrowers, second pari-passu charge on Identifi ed 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 held by VIL, second pari-passu charge on VHHL''s share of cash
fl ows from Identifi ed Assets and second pari-passu charge over
current assets of each of the Borrowers. The Rupee Term Loans are also
secured by fi rst ranking pledge over specifi ed 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 fi rst pari-passu charge on ''Videocon'' brand (Also refer Note
No. 35).
b) Vehicle Loan from Banks are secured by way of hypothecation of
vehicles acquired out of the said loan.
3. ADDITIONAL NOTES TO FINANCIAL STATEMENTS
3.1 The Company has kept the investment activities separate and
distinct from the normal business. Consequently, all the income and
expenditure pertaining to investment activities has been allocated to
the Investments and Securities Division and the income after netting
off the related expenditure has been shown as "Income from Investments
and Securities Division". The Income from Investments and Securities
Division include dividend on long term investments of ` 0.01 Million
(Previous year ` Nil).
4. RELATED PARTY DISCLOSURES:
As required under Accounting Standard 18 on "Related Party
Disclosures", the disclosure of transaction with related parties as
defi ned 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: Key
Management Personnel:
Mr. Mukesh Batra - General Manager (upto 30th June, 2014)
Mr. K. K. Sukumaran - Assistant General Manager (w.e.f. 1st July, 2014)
B) Material Transactions with Related Parties during the year are:
Remuneration to Key Management Personnel - Rs. 2.57 Million (Previous
year Rs. 4.98 Million)
(Rs. in Million)
As at As at
31st Dec, 2014 31st Dec, 2013
5. CONTINGENT LIABILITIES AND COMMITMENTS
A) Contingent Liabilities not provided for:
i) Letters of Credit opened 244.60 799.21
ii) Letters of Guarantees 2,485.12 1,506.17
iii) Claims against the Company not
acknowledged as debts
a) Custom Duty demands and penalties
under dispute 15.68 16.73
[Amount paid under protest Rs. 2.59
Million (Previous year Rs. 2.59 Million)]
b) Excise Duty and Service Tax demands
and penalties under dispute 62.62 53.10
[Amount paid under protest Rs. 1.00 Million
(Previous year Rs. 1.00 Million)]
c) Sales Tax demands and penalties under
dispute 115.65 82.37
[Amount paid under protest Rs. 28.82 Million
(Previous yearRs. 27.24 Million)]
d) Others - 32.16
iv) Income Tax matters in respect of
which appeals are pending 57.85 19.26
[Amount paid under protest/adjusted
by DepartmentRs. 18.15 Million (Previous
year Rs. Nil)]
B) Commitments
Estimated amount of contract remaining
to be executed on capital account and not
provided for (net of advances) 1.30 30.45
6. The Company alongwith 12 other affi liates/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 Fraser
and Co. (India) Limited and Videocon International Electronics Limited.
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 31st December, 2014 ofRs. 195,181.84
Million (Previous yearRs. 193,053.42 Million).
7. The Directorate of Revenue Intelligence, Mumbai Zonal Unit (''DRI'')
has on 30th December, 2014, issued a Show Cause Notice (''SCN'') in
connection with import of Colour Picture Tubes (''CPTs'') by the Company
and other entities. Vide SCN, the Company was called upon, amongst
others, as to why the declared value of CPTs mported should not be
rejected and the same should not be re-determined and why the amount of
anti-dumping duty ofRs. 6.94 Million and penalty thereon should not be
recovered under the extended period under the provisons of the Customs
Act, 1962.
The Company has denied the allegation made by DRI for alleged evasion
of duty. 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 and, accordingly,
there is no question of duty evasion or penalty thereon and no
provision has been considered in the financial statements.
37. The Company is primarily engaged in manufacturing and trading of
Electrical and Electronic Appliances and there is no other reportable
segment as defi ned in Accounting Standard 17 on "Segment Reporting".
38. The outstanding balances of certain Trade Receivables, Trade
Payables, Deposits, Advances and Other Current Assets/ Liabilities are
subject to confi rmation 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. Figures of previous year have been reclassified, restated,
recasted to conform to the classification of the current year.
Dec 31, 2013
1. As per the accounting policy followed by the Company, the Grant
received from Ozone Projects Trust Fund for financing the machinery
under the project has been treated as "deferred income" to be
recognised in the Statement of Profit and Loss over the useful life of
the assets under the project. Accordingly, an amount of Rs. 2.01 Million
(Previous year Rs. 2.52 Million) has been allocated to income and
credited to miscellaneous income, in proportion to the depreciation
charged on those assets for the year. The balance deferred income has
been carried to Balance Sheet as Grant from Ozone Projects Trust Fund.
2. Secured Loans:
a) Rupee Term Loans from Banks
The Company along with 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, Next Retail India Limited, Evans Fraser and Co.
(India) Limited and Videocon International Electronics Limited.
Rupee Term Loans from Banks 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 held by
VIL, 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 by the promoters over equity shares of Videocon
Industries Limited, Trend Electronics Limited and Value Industries
Limited held by them, the personal guarantees of Mr. Venugopal N.
Dhoot, Mr. Pradipkumar N. Dhoot, Mr. Rajkumar N. Dhoot and first
pari-passu charge on ''Videocon'' brand. However, charge has not been
created in favor of such Consortium of banks (A) for the credit
facility to the Obligors on the assets by way of pledge of shares of
the subsidiaries of VIL viz. Videocon Mauritius Energy Limited and
Videocon Mozambique Rovuma 1 Limited (VMRL), which have been pledged to
Standard Chartered Bank for the loans avalied by VHHL; (B) for any
other receivables from VMRL; and (C) on any assets of VMRL. (Also refer
Note No. 36).
b) External Commercial Borrowings are secured by a first charge
ranking pari-passu on the movable and immovable fixed assets. The same
is further secured by corporate guarantee given by Videocon Industries
Limited.
c) Vehicle Loans from Banks are secured by way of hypothecation of
vehicles acquired out of the said loan.
3. Unsecured Rupee Loans from Bank is guaranteed by personal guarantee
of Mr. Venugopal N. Dhoot and corporate guarantee of Videocon
Industries Limited.
4. The Working Capital Loans from Banks are secured by hypothecation
of inventories, book-debts and other receivables, both present and
future.
5. EMPLOYEE BENEFITS:
Disclosure pursuant to Accounting Standard (AS) 15 (Revised):
A) Defined Contribution Plans:
Amount of Rs. 27.68 Million (Previous year Rs. 22.55 Million) is
recognised as an expense and shown under the head "Employee Benefits
Expense" (Note No. 26) in the Statement of Profit and Loss.
6. 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: Key
Management Personnel:
Mr. Mukesh Batra - General Manager (Previous year Mr. Sanjay R. Patil -
Assistant General Manager)
B) Material Transactions with Related Parties during the year are:
Remuneration to Key Management Personnel -Rs.4.98 Million (Previous year
Rs. 2.27 Million)
(Rs. in Million)
As at As at
7. CONTINGENT LIABILITIES
AND COMMITMENTS 31st Dec, 2013 31st Dec, 2012
A) Contingent Liabilities not
provided for:
i) Letters of Credit opened 799.21 1,033.99
ii) Letters of Guarantees 1,506.17 1,334.67
iii) Claims against the Company
not acknowledged as debts
a) Custom Duty demands and
penalties under dispute 16.73 19.17
[Amount paid under protest Rs.
2.59 Million (Previous year Rs.
2.59 Million)]
b) Excise Duty and Service Tax
demands and penalties under
dispute 53.10 42.20
[Amount paid under protest Rs.
1.00 Million (Previous year Rs.
1.00 Million)]
c) Sales Tax demands and penalties
under dispute 82.37 89.37
[Amount paid under protest Rs.
27.24 Million (Previous year Rs.
29.29 Million)]
d) Others 32.16 -
iv) Income Tax matters in respect
of which appeals are pending 19.26 7.07
B) Commitments
Estimated amount of contract remaining to be executed on capital
account and not provided for (net of advances) 30.45 5.22
8. The Company is a Co-guarantor in respect of borrowings of group
companies. The aggregate amount of said guarantees, extended along with
8 other Co-guarantors are Rs. 1,245.20 Million (Previous year Rs. 5,240.20
Million). The said guarantees are extended on the basis of support in
the form of undertaking provided by certain other Group Companies to
the extent of the amount of the guarantees.
9. A) The Company along with 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 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 31st December, 2013 ofRs. 193,053.42 Million
(Previous yearRs.141,630.61 Million).
B) The Company is a co-obligor along with 12 other affiliates/entities
in respect of Term Loans amounting to Rs. 1,875.00 Million (Previous
year Rs. 44,250.00 Million) granted to Videocon Industries Limited. The
same is secured by subservient charge on entire movables and current
assets, both present and future of the Company and 12 other
co-obligors/borrowers except for the assets of Ravva Oil Field. The
loans are further secured by subservient charge on ''Videocon'' and
Kenstar'' brands and irrevocable and unconditional personal guarantees
of Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.
10. The Company is primarily engaged in manufacturing and trading of
Electrical and Electronic Appliances and there is no other reportable
segment as defined in Accounting Standard 17 on "Segment Reporting"
11. 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.
12. 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.
13. There are no amounts due and outstanding, to be credited to the
Investor Education and Protection Fund.
14. Figures of previous year have been reclassified, restated,
recanted to conform to the classification of the current year.
Dec 31, 2011
(Rs. in Million)
As at As at
31st Dec.,
2011 31st Dec.
2010
1. Contingent Liabilities not
provided for in respect of:
a) Letters of Guarantees 19.87 27.67
b) Letters of Credit opened 332.99 146.18
c) Excise Duty demands under dispute 5.10 2.29
(Amount paid under protest Rs 1.00
million. Previous period Rs. 1.00
million)
d) Custom Duty demands under dispute 13.27 12.38
(Amount paid under protest Rs. 2.59
million. Previous period Rs.
2 59 million)
e) Service Tax demands under dispute 18.18 100
f) Sales Tax demands under dispute 86.18 86.18
(Amount paid under protest Rs.
27.93 million. Previous period Rs.
27.93 million)
g) The Company is a Co-guarantor in respect of borrowings of group
companies. The aggregate amount of said guarantees, extended along with
8 other Co- guarantors are Rs. 8,311.10 million (Previous period Rs.
9,056.00 million). The said guarantees are extended on the basis of
support in the form of undertaking provided by certain other group
companies to the extent of the amount of the guarantees. Further, the
Company is a Co-guarantor along with 14 other Co- guarantors in respect
of borrowings of group companies amounting to Rs. 3,500.00 million
(Previous period Rs. 3,500.00 million).
2. Secured Loans:
a) The Non-Convertible Debentures are secured by first mortgage and
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 excluding equipments charged to Financial
Institutions for their equipment finance, ranking pari-passu with the
charge created and/or to be created in favour of Financial
Institutions/ Banks in respect of their existing and future financial
assistance. .
The Debentures referred above are redeemable at par in one or more
installments on or before 1st April, 2012.
b) Rupee Term Loans from Banks and Financial Institutions of Rs.
1,167.73 million are secured by mortgage and charge on the immovable
and movable properties, both present and future (subject to the charges
created and/or to be created in favour of bankers on specified
movables/current assets for securing borrowings for working capital
requirements), ranking pari-passu with the charges created and/or to be
created in favour of other lenders and guaranteed by Mr. Venugopai N.
Dhoot and Mr. Pradipkumar N. Dhoot.
Rupee Term Loan from Bank of Rs. 1,011.15 million is secured by
pari-passu charge over all the inventories and book debts of the
Company and an exclusive charge over the inventories and book debts
created out of that loan and personal guarantees of Mr. Venugopai N.
Dhoot and Mr. Pradipkumar N. Dhoot.
c) External Commercial Borrowings are secured by a first charge ranking
pari-passu on the movable and immovable fixed assets. The loan is
further secured by corporate guarantee given by Videocon Industries
Limited.
d) Vehicle Loans from Banks are secured by way of hypothecation of
vehicles acquired out of the said loan.
e) The Working Capital Loans from Banks are secured by hypothecation of
inventories, book debts and other receivables, both present and future.
3. Unsecured Loans from Banks are guaranteed by Mr. Venugopal N.
Dhoot.
4. Estimated amount of contract remaining to be executed on capital
account and not provided for (net of advances) Rs. 31.82 million
(Previous period Rs. 5.07 million).
5. Capital Work-in-Progress includes advances for capital assets of Rs.
1.00 million (Previous period Rs. 12.54 million).
6. The Company has made a provision of Rs. 14.00 million (Previous
period Rs. 43.90 million) towards current income tax, after taking into
consideration, the benefits admissible under the provisions of the
Income Tax Act, 1961 and the same is, in the opinion of the Management,
adequate.
7. The Minimum Alternate Tax (MAT) paid by the Company is entitled to
be carried forward and utilised in subsequent years. In the opinion of
Management, on the basis of projections and the estimates of future
taxable income, the Company would have normal tax liability within the
specified period to avail such MAT credit. Consequently, the Company
has recognized the MAT credit entitlement of Rs. 1.96 million (Previous
period Rs. 4.94 million).
8. The Company has kept the investment activities separate and
distinct from the normal business. Consequently, all the income and
expenditure pertaining to investment activities has been allocated to
the Investments and Securities Division and the income after netting
off the related expenditure has been shown as "Income from
Investments and Securities Division" under "Other Income". The
lncome/(Loss) from Investments and Securities Division includes:
9. As per the accounting policy followed by the Company, the Grant
received from Ozone Projects Trust Fund for financing the machinery
under the project has been treated as "deferred income" to be
recognised in Profit and Loss Account over the useful life of the
assets under the project. Accordingly, an amount of t 3.15 million
(Previous period Rs. 5.22 million) has been allocated to income and
credited to miscellaneous income, in proportion to the depreciation
charged on those assets for the period. The balance deferred income has
been carried to Balance Sheet as Grant from Ozone Projects Trust Fund.
10. The Company is primarily engaged in manufacturing of Electrical
and Electronic Appliances and there is no other reportable segment as
defined in Accounting Standard 17 "Segment Reporting".
11. Related Party Disclosures:
a) Key Management Personnel
- Mr. Sanjay R. Patil (Asst. General Manager)
b) Transactions with Related Parties:
Remuneration to Key Management Personnel Rs. 2.31 Million (Previous
period Rs. 2.37 Million)
i) Defined Contribution Plans:
Amount of Rs. 17.99 million (Previous period Rs. 14.05 million) is
recognised as an expense and shown under the head "Salary, Wages and
Employees' Benefits" (Schedule-11) 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/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 the 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 outstanding balances of certain Debtors, Creditors, Deposits
and Advances are subject to confirmation.
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. 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.
Dec 31, 2010
(Rs. Million)
As at As at
31st Dec, 2010 30th Sept., 2009
1. Contingent Liabilities
not provided for in respect of:
a) Letters of Guarantees 27.67 23.32
b) Letters of Credit opened 146.18 135.27
c) Excise Duty demands under dispute 2.29 3.41
(Amount paid under protest Rs. 1.00
million, Previous year Rs. 1.00
million)
d) Custom Duty demands under dispute 12.38 7.40
(Amount paid under
protest Rs. 2.59 million, Previous
year Rs. 1.50 million)
e) Service Tax demands under dispute 1.00 1.00
f) Sales Tax demands under dispute 86.18 120.55
(Amount paid under
protest Rs. 27.93 million,
Previous year Rs. 26.06 million)
g) The Company is a Co-guarantor in respect of borrowings of group
companies. The aggregate amount of said guarantees, extended along with
8 other Co- guarantors are Rs. 9,056.00 million (Previous year Rs.
9,694.00 million). The said guarantees are extended on the basis of
support in the form of undertaking provided by certain other group
companies to the extent of the amount of the guarantees. Further, the
Company is a Co-guarantor along with 14 other Co- guarantors in respect
of borrowings of group companies amounting to Rs. 3,500.00 million
(Previous year Nil).
2. Secured Loans:
a) The Non-Convertible Debentures are secured by first mortgage and
charge on immovable and movable properties, both present and future,
subject to prior charge on specified movables created/to be created in
favour of Companys Bankers for securing borrowings for working capital
requirements and excluding equipments charged to Financial Institutions
for their equipment finance, ranking pari passu with the charge created
and/or to be created in favour of Financial Institutions/ Banks in
respect of their existing and future financial assistance.
The Debentures referred above are redeemable at par in one or more
installments on various dates with the earliest redemption being on 1st
April, 2011 and last date being 1st April, 2012. The debentures are
redeemable as follows: Rs. 21.83 million in financial year 2011 and Rs.
5.21 million in financial year 2012.
b) Rupee Term Loans from Banks and Financial Institutions are secured
by mortgage and charge on the immovable and movable properties, both
present and future (subject to the charges created and/or to be created
in favour of bankers on specified movables/current assets for securing
borrowings for working capital requirements), ranking pari passu with
the charges created and/or to be created in favour of other lenders and
guaranteed by Mr. Venugopal N. Dhoot and Mr. Pradipkumar N. Dhoot.
c) External Commercial Borrowings are secured by a first charge ranking
pari passu on the movable and immovable fixed assets. The loan is
further secured by corporate guarantee given by Videocon Industries
Limited.
d) The Working Capital Loans from Banks are secured by hypothecation of
inventories, book-debts and other receivables, both present and future.
3. Unsecured Loan from Bank is guaranteed by Mr. Venugopal N. Dhoot,
the director of the Company.
4. The gross block of the Fixed Assets includes Rs. 1,232.14 million
(Previous year Rs. 1,232.14 million) on account of revaluation of Plant
and Machinery made as at 1st April, 1998. The additional depreciation
of Rs. 8.75 million (Previous year Rs. 13.74 million) consequent to the
said revaluation has been withdrawn from Revaluation Reserves and
credited to the Profit and Loss Account.
5. Estimated amount of contract remaining to be executed on capital
account and not provided for (net of advances) Rs. 5.07 million
(Previous Year Nil).
6. Capital Work in Progress includes advances for capital assets of
Rs. 12.54 million (Previous year Nil), Interest and Finance Charges
capitalised during the period Rs. Nil (Previous year Rs. 7.68 million).
7. As per the accounting policy followed by the Company, the Grant
received from Ozone Projects Trust Fund for financing the machinery
under the project has been treated as "deferred income" to be
recognised in Profit and Loss Account over the useful life of the
assets under the project. Accordingly, an amount of Rs. 5.22 million
(Previous year Rs. 5.22 million) has been allocated to income and
credited to miscellaneous income, in proportion to the depreciation
charged on those assets for the period. The balance deferred income has
been carried to Balance Sheet as Grant from Ozone Projects Trust Fund.
8. The Company has made a provision of Rs. 43.90 million (Previous
year Rs. 12.45 million) towards current income tax, after taking into
consideration, the benefits admissible under the provisions of the
Income Tax Act, 1961 and the same is, in the opinion of the Management,
adequate.
9. The Minimum Alternate Tax (MAT) paid by the Company is entitled to
be carried forward and utilised in subsequent years. In the opinion of
Management, on the basis of projections and the estimates of future
taxable income, the Company would have normal tax liability within the
specified period to avail such MAT credit. Consequently, the Company
has recognized the MAT credit entitlement of Rs. 4.94 million in
respect of current period.
10. The Company is primarily engaged in manufacturing of Electrical
and Electronic Appliances and there is no other reportable segment as
defined in Accounting Standard 17 "Segment Reporting".
11. Related Party Disclosures:
a) Key Management Personnel
- Mr. Manjunath P. Bhosale (General Manager) upto 31st March, 2010
- Mr. Sanjay R. Patil (Asst. General Manager) w.e.f. 1st April, 2010
12. Employee Benefits:
i) Defined Contribution Plans:
Amount of Rs. 14.05 million (Previous year Rs. 11.70 million) is
recognised as an expense and shown under the head "Salary, Wages and
Employees Benefts" (Schedule-11) n the Profit and Loss Account
13. 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 principle
and/or interest thereon or on mismanagement to 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.
14. The outstanding balances of certain Debtors, Creditors, Deposits
and Advances are subject to confirmation.
15. 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.
16. There are no amounts due and outstanding, to be credited to
Investor Education and Protection Fund.
17. The figures for the current period are for a period of 15 months
as against 12 months in previous period and hence, are not comparable.
Figures in respect of previous year have been regrouped, reclassified
and recasted wherever necessary to make them comparable with those of
current period.
Sep 30, 2009
(Rupees in Million)
As at As at
30th Sept., 30th Sept.,
2009 2008
1. Contingent Liabilities not provided for
in respect of:
a) Letters of Guarantees including 23.32 5.20
Bank Guarantees
b) Letters of Credit opened 135.27 109.04
c) Excise Duty Demands under dispute 3.41 3.80
(Amount paid under protest
Rs 1.00 million, Previous year
Rs. 1.00 million)
d) Custom Duty Demands under dispute 7.40 12.26
(Amount paid under protest
Rs. 1.50 million, Previous year Rs.
2.51 million)
e) Service Tax Demands under dispute 1.00 1.00
f) Sales Tax Demands under dispute 120.55 87.54
(Amount paid under protest
Rs. 26.06 million, Previous year Rs.
26.15 million)
g) The Company is a co-guarantor in respect of borrowing of a group
company. The aggregate amount of the said guarantee extended alongwith
8 other co-guarantors is Rs. 9,694.00 million (Previous year Rs.
9,464.00 million). The said guarantee is extended on the basis of
support in the form of undertaking obtained from certain other group
companies to the extent of the amount of the guarantee.
2. The gross block of the Fixed Assets includes Rs. 1,232.14 million
(Previous year Rs. 1,232.14 million) on account of revaluation of Plant
and Machinery made as at 1st April, 1998. The additional depreciation
of Rs. 13.74 million (Previous year Rs. 16.35 million) consequent to
the said revaluation has been charged to the Profit and Loss Account.
3. The Company has kept the investment activities separate and
distinct from the normal business. Consequently, all the income and
expenditure pertaining to investments activities has been allocated to
the Investments & Securities Division and the income after netting off
the related expenditure has been shown as "Income from Investments &
Securities Division" under "Other Income".
4. As per the accounting policy followed by the Company, the Grant
received from Ozone Projects Trust Fund for financing the machinery
under the project has been treated as "deferred income" to be
recognised in Profit and Loss Account over the useful life of the
assets under the project. Accordingly, an amount of Rs. 5.22 million
(Previous year Rs. 6.52 million) has been allocated to income and
credited to miscellaneous income, in proportion to the depreciation
charged on those assets for the year. The balance deferred income has
been carried to Balance Sheet as Grant from Ozone Projects Trust Fund .
5. The Company has made a provision of Rs. 12.45 million (Previous
year Rs. 14.00 million) towards current income tax, after taking into
consideration, the benefits admissible under the provisions of the
Income Tax Act, 1961 and the same is, in the opinion of the Management,
adequate.
6. The Company is primarily engaged in manufacturing of Electrical and
Electronic Appliances and there is no other reportable segment as
defined in Accounting Standard 17 "Segment Reporting".
7. Capital Work-in-Progress includes, Interest and Finance charges
Capitalised during the year Rs. 7.68 million (Previous year Rs. 90.05
million).
8. 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. During the year, the Company has forfeited and cancelled 127,684
shares (Previous year Nil) issued and allotted as part of the public
issue due to non receipt of allotment and/or call money from
shareholders. The amount paid on these shares amounting to Rs. 0.64
million has been transferred to Capital Reserve.
10. Employees Benefits:
i) Defined Contribution Plans:
Amount of Rs. 11.70 million (Previous year Rs. 11.20 million) is
recognised as an expense and shown under the head "Salary, Wages and
Employees Benefits" (Schedule-11) in the Profit and Loss Account.
11. 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 principle and/or interest thereon
or on mismanagement to the affairs of the company.
12. 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 at par as per SEBI
guidelines on default in payment of dividend or a default in redemption
of Preference Shares thereon or any combination thereof.
13. The outstanding balances of certain Debtors, Creditors, Deposits
and Advances are subject to confirmation.
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
Investor Education and Protection Fund.
16. Figures of the previous year have been regrouped/ reclassified
wherever necessary.
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