Videocon Industries Ltd. - Quarterly/Annual Result Disclosures and Notes dated 30 Jun 2017

1. The above standalone financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 20th November, 2017. The Limited Review under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been carried out by the Statutory Auditors of the Company.

2. The Company has adopted the Indian Accounting Standards ('Ind AS') from 1st April, 2017 (transition date 1st January, 2016) and accordingly, these standalone financial results for the quarter ended 30th June, 2017 together with the results of the comparative previous period have been prepared in accordance with recognition and measurement principles laid down in the Ind AS 34 'Interim Financial Reporting' prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued there under and the other accounting principles generally accepted in India.

3. The impact of transition has been accounted for in the opening reserves and the comparable period results have been restated accordingly. The results for the quarter ended 30th June, 2016 have not been subjected to limited review or an audit in-line with SEBI Circular dated 5th July, 2016. However, the Management has exercised necessary due diligence to ensure that such financial results provide a true and fair view.

4. Reconciliation between standalone financial results previously reported (referred to as the 'Indian GAAP') and the Ind AS for quarter ended 30th June, 2016 is given below:

Particulars Quarter ended 30.06.2016



Net Profit/(Loss) as per previous Indian GAAP (286.64)

Amortised cost measurement of borrowings (29.69)



Incremental Depreciation on account of fair valuation of property, (44.71)

plant and equipment

Others 0.41

Actuarial loss on defined benefit plans recognised in Other Comprehensive Income 0.07

Deferred tax impact on above adjustments (8.19)

Profit/(Loss) after Tax under Ind AS (368.75)



Other Comprehensive Income

Remeasurement of defined benefit plans (0.07)



Equity instruments through other comprehensive income 1.37

- net change in fair value

Deferred tax impact on remeasurement of defined benefit plans 0.03

Other Comprehensive Income/(Loss) 1.33



Total Comprehensive Income/(Loss) for the period under Ind AS (367.42)

The above reconciliation of net profit/(loss) after tax under Ind AS of the corresponding quarter with net profit/(loss) reported under previous Indian GAAP has been reported by the management and have not been subjected to limited review or audit.

5. The Statement does not include Ind AS compliant results for the preceding quarter and previous year ended 31st March, 2017 as the same are not mandatory as per SEBI's Circular dated 5th July, 2016.

6. During the quarter ended 30th June, 2017, the Company has provided impairment loss of Rs. 281.52 Crore in respect of the fixed assets comprising plant and machinery.

7. The Company has, directly and through its subsidiaries, made investments of Rs. 7,500.20 Crore in Videocon Telecommunications Limited (VTL), the subsidiary. Though VTL has huge accumulated losses, its networth is positive and the management is confident of continuing its commercial operations in the National Long Distance (NLD) and International Long Distance (ILD) Business. Accordingly, in the opinion of the management, no provision is required for diminution in the value of aforesaid investments in VTL.

8. The figures of the previous period have been regrouped and reclassified to conform to the classification of current period, wherever considered necessary.