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FINANCIAL ACCOUNTING

ANALYSIS ON VIDEOCON INDUSTRY

ANNUAL REPORT 2007-08

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INTRODUCTION

Videocon Industries was founded in 1987 by Mr. Nandlal Madhavlal Dhoot. At that time they only used to manufacture TV and Washing Machines. Then after in 1989-90, they started manufacturing Home Entertainment Systems, Electric Motors & AC. Videocon entered Refrigerators and coolers segment in 1991. In 1995, Videocon started manufacturing Glass shells for CRT and in 1996 it ventured into Kitchen appliances and crude oil segment. In 1998, Videocon started manufacturing Compressors & Compressor Motors.
They introduce Colour TV Videocon took over Philips Plant. In 2005, Videocon took over 3 plants of Electrolux India and acquired Thomson CPT.
Today, it has evolved into a giant conglomerate with annual revenues of over U$4.1 billion. They have diversified their business in different segments. Now along with Consumer Durables they are also engaged in Oil & Gus, Telecom and Power Sectors.

DIRECTOR’S REPORT

1. The Net sales of the company registered an increase of 17.72% over the previous financial year. It increased from Rs. 82,854.24 Million as on September 30, 2007 to Rs. 97,536.Million. Profit after tax amounted to Rs. 8,542.95 Million as against Rs. 8,552.19 for the previous year. This was a difference of Rs. 9.42 Million.

2. Operations of the company in various sectors:
A.Consumer Electronics and Home Appliances:
The Company consolidated its position in the Business of Consumer Electronics and Home Appliances. During the year, inspite of economic slowdown, the company registered a satisfactory performance due to new technology introduction and focused penetration in key markets.

B.Oil and Gas:
During the year, the Company ventured further into oil and gas sector with continuing exploration activities in the concession areas in Australia,