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2015-2016Annual Report
Electrical Devices and Systems India Limited
2015-2016Annual Report
Electrical Devices and Systems India Limited
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
01
BOARD OF DIRECTORS (as on July 29, 2016)
Mr. Rohit Bansal (Whole-time Director)
Mr. Inder Jeet Singh (Independent Director)
Mr. Chan Chee Leong (Director)
Ms. Neelu Khatri (Director)
BANKERS
Citibank N.A.
REGISTERED OFFICE AUDITORS
rd th3 & 4 Floor, Deloitte Haskins & Sells LLP
Dowlath Towers, Chartered Accountants
Taylors Road, Kilpauk, Pune
Chennai – 600010
WORKS
780/1-A-1, 782/2B, Khasra No.323 (MI)
Chennai Bangalore Highway Camp Road, Central Hopetown,
Pappanchathiram Selaqui Industrial Area
Kuthambakkam Village Selaqui, Dehradun 248 197
Tiruvallur District 602 103
Contents
Notice ......................................... 3-10
Directors’ Report ........................ 11-34
Auditors’ Report ......................... 35-42
Balance Sheet ............................ 43
Profit & Loss Account ................. 44
Cash flow Statement .................. 45-46
Notes 1 to 40 .............................. 47-75
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notice
03
Notice is hereby given that the Thirty First Annual General Meeting of the Members of Honeywell Electrical Devices and
Systems India Limited will be held on Friday, September 23, 2016 at the registered office of the Company at 3rd & 4th Floor,
Dowlath Towers, Taylors Road, Kilpauk, Chennai – 600010 at 11.00 AM to transact the following business:
ORDINARY BUSINESS:
1. To consider and adopt the audited financial statement of the Company for the financial year ended March 31, 2016, the
Reports of the Directors and Auditors thereon
2. To ratify appointment of Statutory Auditors
3. To appoint a Director in place of Mr. Rohit Bansal who retires by rotation and being eligible, has offered himself for re-
appointment
SPECIAL BUSINESS:
4. Ratification of remuneration of Cost Auditors:
To consider and if thought fit to pass with or without modification(s) the following resolution as ORDINARY RESOLUTION:
“RESOLVED THAT pursuant to the provisions of Section 148(3) and other applicable provisions, if any, of the Companies
Act, 2013 and the Rules made thereunder, the remuneration payable to M/s. C.S. Adawadkar & Co; Cost Accountant
having Membership No. M-22758, appointed by the Board of Directors as Cost Auditors to conduct the audit of the cost
records of the Company for the financial year ending March 31, 2017, amounting to Rs. 1,75,000/- as also the payment of
service tax as applicable and reimbursement of out of pocket expenses incurred in connection with the aforesaid audit, be
and is hereby ratified and confirmed.”
RESOLVED FURTHER THAT any of the Directors of the Company be and are hereby severally authorized to do all such
acts, deeds and things, and to execute all such deeds, documents, writings as it may in its absolute discretion deem
necessary or incidental and pay such fees, etc. and incur such expenses in relation thereto as it may deem appropriate for
giving effect to this resolution including but not limited to filing of necessary forms and documents with statutory authorities
and with any other regulatory authorities, as may be required.”
5. Waiver of recovery of excess remuneration paid to Mr. Sadannd Teje for the financial year 2015-16
To consider and if thought fit to pass with or without modification(s) the following resolution as SPECIAL RESOLUTION:
“RESOLVED THAT pursuant to the provisions of Section 197(10) of the Companies Act, 2013 and such other applicable
provisions of the Act, if any, and subject to approval of the shareholders in the General Meeting and subject to the approval
of the Central Government, if any, the Board hereby gives its consent for waiver of the recovery of excess remuneration of
Rs. 38,53,188/- paid to Mr. Sadanand Vitthal Teje , Managing Director of the company, which is in excess pursuant to the
provisions of Section 197 read with Schedule V of the Companies Act, 2013, towards salary and allowances during the
period commencing from April 1, 2015 and ending on March 31, 2016.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all such acts,
deeds, matters and things as in its absolute discretion to give effect to the above resolution and to settle any question or
doubt that may arise in relation thereto and the Board shall have absolute power to give effect to the forgoing resolution, or
as may be otherwise considered by it to be in the best interest of the Company.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
04
RESOLVED FURTHER THAT any of the Directors of the Company be and are hereby severally authorized to take such
steps including filing of necessary forms with the Central Government for obtaining necessary approvals as may be
necessary and desirable to give effect to this resolution.”
6. Waiver of recovery of excess remuneration paid to Mr. Anil Ramachandra Kini for the financial year 2015-16:
To consider and if thought fit to pass with or without modification(s) the following resolution as SPECIAL RESOLUTION:
“RESOLVED THAT pursuant to the provisions of Section 197(10) of the Companies Act, 2013 and such other applicable
provisions of the Act, if any, and subject to approval of the shareholders in the General Meeting, if any and subject to the
approval of the Central Government, the Board hereby gives its consent for waiver of the recovery of excess remuneration
of Rs. 23,09,269/- paid to Mr. Anil Ramachandra Kini, Whole-Time-Director of the company, which is in excess pursuant to
the provisions of Section 197 read with Schedule V of the Companies Act, 2013, towards salary and allowances during the
period commencing from April1, 2015 and ending on March 31, 2016.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all such acts,
deeds, matters and things as in its absolute discretion to give effect to the above resolution and to settle any question or
doubt that may arise in relation thereto and the Board shall have absolute power to give effect to the forgoing resolution, or
as may be otherwise considered by it to be in the best interest of the Company.
RESOLVED FURTHER THAT any of the Directors of the Company be and are hereby severally authorized to take such
steps including filing of necessary forms with the Central Government for obtaining necessary approvals as may be
necessary and desirable to give effect to this resolution.”
Notes:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS ENTITLED TO
APPOINT A PROXY TO ATTEND AND VOTE IN THE MEETING AND THE PROXY NEED NOT BE A MEMBER
OF THE COMPANY
2. The instrument appointing the proxy must be deposited at the registered office of the Company not less than 48
hours before the commencement of the meeting.
3. Members / proxies should bring duly filled Attendance Slips sent herewith to attend the meeting.
4. The Statutory Registers maintained under the Companies Act, 2013, will be available for inspection by the
members at the ANNUAL GENERAL MEETING.
5. Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 is annexed hereto
6. A route map to the venue of the Annual General Meeting has been provided at the end of the Annual Report.
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013
Item No. 4
The Board of Directors of the Company approved the appointment and remuneration of M/s. C.S. Adawadkar & Co; Cost
Accountant, to conduct the audit of the cost records of the Company for the financial year ended March 31, 2016.
In terms of the provisions of Section 148(3) of the Companies Act, 2013 read with Rule 14(a)(ii) of the Companies (Audit and
Auditors) Rules, 2014, the remuneration payable to the Cost Auditor is required to be ratified by the members of the
Notice (contd.)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notice (contd.)
05
Company. Accordingly, the members are requested to ratify the remuneration payable to the Cost Auditors for audit of cost
records of the Company for the financial year 2015-16 as set out in the resolution for the aforesaid services to be rendered
by them.
None of the Directors are, in any way has any interest or concern in the resolution. The Board recommends the resolution
set forth in Item No. 4 for the approval of the members.
Item No. 5
The Company has paid an excess remuneration of Rs. 38,53,188/- for the year ended March 31, 2016, to Mr. Sadanand
Vitthal Teje. The said remuneration is in excess of the amount permissible under the Act and the excess remuneration paid
is proposed to be waived during the current financial year.
In order to authorise the Board for taking further action, it is necessary to take the approval of the members by passing the
said special resolution for waiver of excess remuneration paid to Mr. Sadanand Vitthal Teje which is subject to approval of
Central Government, as may be required.
No director or their relatives, except Mr. Sadanand Vitthal Teje, to whom the resolution relates, is interested or concerned in
the resolution.
The Board accordingly recommends the resolution as set out in Item No. 5 for approval of the members.
Item No. 6
The Company has paid an excess remuneration of Rs. 23,09,269/- for the year ended March 31, 2016, for Mr. Anil
Ramchandra Kini. The said remuneration is in excess of the amount permissible under the Act and the excess remuneration
paid is proposed to be waived during the current financial year.
In order to authorise the Board for taking further action, it is necessary to take the approval of the members by passing the
said special resolution for waiver of excess remuneration paid to Mr. Anil Ramchandra Kini which is subject to approval of
Central Government, as may be required.
No director or their relatives, except Mr. Anil Ramchandra Kini, to whom the resolution relates, is interested or concerned in
the resolution.
The Board accordingly recommends the resolution as set out in Item No. 6 for approval of the members
For and on Behalf of Board of
Honeywell Electrical Devices and Systems India Limited
Mr. Rohit Bansal
(DIN: - 07152089)
thDate: 29 July 2016Place: Pune
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notice (contd.)
06
Details of Director to be appointed/ re-appointed at the Annual General Meeting to be held on Friday, September 23,
2016 in terms of Secretarial Standard -2.
Item No. 3
We provide below the brief resume, nature of expertise in specific functional areas, name of the companies in which the
director also holds the directorship, chairmanship/membership of the committees of the Board, if any (information provided
herein is restricted only to membership in Audit Committee, Nomination and Remuneration Committee & Corporate Social
Responsibility Committee), shareholding, etc.
NAME Mr. Rohit Bansal (DIN: 07152089)
DATE OF BIRTH AND AGE November 20, 1972 Age: 43 Years
DATE OF FIRST April 30, 2015
APPOINTMENT ON
BOARD IF ANY
QUALIFICATION Post-Graduate diploma in Sales and Marketing Management from Bhartiya Vidya
Bhawan, Jaipur and Engineering degree in Technical from M.B.M Engineering
College, Jodhpur
EXPERIENCE More than 18 Years' experience in the field of Business development management
which includes setting up and managing business operations, managing sales team
serving original equipment manufacturers, end users, panel builders and contractors
and building a distribution network.
Besides this, He led 5 year Strategic plan (LTBP), Annual operating Plan(AOP),
Management Report Review(MRR) processes for business. He is also experienced
in the field of building sales and marketing team's skill set and cross functional co-
ordination to execute the strategy. He has developed AP S&C channel sales strategy
and product specific strategies for Indian Market.
Prior to joining Honeywell, he has been associated with Omron India Industrial
Automation and also worked for Schneider Electric holding various positions
beginning as Resident Sales Engineer at Jaipur to Business Development Manager
at Paris for Switchgear and Industrial Automation products.
DIRECTORSHIP HELD Nil
IN OTHER COMPANEIS
MEMBERSHIP/ He is a member of the Audit Committee, Nomination and Remuneration Committee
CHAIRMANSHIP OF & Corporate Social Responsibility Committee in the company.
COMMITTEES ACROSS
ALL COMPANIES He does not hold membership/chairmanship of committees in any other company.
NUMBER OF SHARES Nil
HELD IN THE COMPANY
AS ON DATE OF THIS
NOTICE
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
07
TERMS AND CONDITIONS Mr. Rohit Bansal was appointed as Additional Director and also appointed as
OF APPOINTMENT Time Director for the period of five years with effect from April 30, 2015. His
appointment for the term of five years was subsequently approved by shareholders
in the Annual General Meeting held on December 23, 2015, on the terms and
conditions as agreed with the Company. The shareholders in the Annual General
Meeting held on December 23, 2015, have approved the payment of remuneration to
Mr. Rohit Bansal, with effect from April 30, 2015 consisting of Basic pay, HRA, Other
allowances, and Employer PF contributions and subject to such increase from time to
time as may be mutually agreed between the Board and Mr. Rohit Bansal up to a
maximum period of three years.
RELATIONSHIP WITH Mr. Rohit Bansal is not related to any of the directors of the Company.
OTHER DIRECTORS,
KEY MANAGERIAL
PERSONNEL OF THE
COMPANY
NUMBER OF MEETINGS The number of meetings attended by Mr. Rohit Bansal is as disclosed elsewhere in
OF THE BOARD the Directors' Report.
ATTENDED DURING THE
YEAR
Whole
For and on Behalf of Board of
Honeywell Electrical Devices and Systems India Limited
Mr. Rohit Bansal
(DIN: - 07152089)
thDate: 29 July 2016Place: Pune
Notice (contd.)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
08
Annexure to the Notice of Thirty First Annual General Meeting of Honeywell Electrical Devices And Systems India
Limited
The following Resolution No. 7 is proposed for approval of Shareholders and forms part of the Notice:
7. Appointment of Mr. Virender Shankar as Independent Director:
To consider and if thought fit to pass, with or without modification(s), the following resolution as ORDINARY RESOLUTION:
"RESOLVED THAT pursuant to the provisions of Section 149 and 152 read with Schedule IV of the Companies Act, 2013
and the Rules made thereunder, (including any statutory modification(s) or re-enactment thereof for the time being in force)
Mr. Virender Shankar (DIN No. 00169553) who was appointed as an Additional Director of the Company on August 10,
2016 pursuant to the provisions of Section 161 and all other applicable provisions of the Companies Act, 2013 and who
holds office up to the date of this Annual General Meeting and in respect of whom the Company has received a Notice in
writing under Section 160, along with a deposit of Rs.1,00,000/-, proposing his candidature for the office of Director of the
Company, be and is hereby appointed as an Independent Director of the Company to hold the office for a period of 5 years
with effect from the date of this meeting and that he shall not be liable to retire by rotation..
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all such acts,
deeds, matters and things as are incidental thereto or as may be deemed necessary to give effect to this resolution.”
Explanatory Statement Pursuant to Section 102 of the Companies Act 2013
Item No. 7
The Board appointed Mr. Virender Shankar as an Additional Director of the Company on August 10, 2016, pursuant to
Section 161 of the Companies Act, 2013
Pursuant to the provisions of Section 161 of the Companies Act, 2013, Mr. Virender Shankar will hold office up to the date of
the ensuing Annual General Meeting. The Company has received notice in writing under the provisions of Section 160 of the
Companies Act, 2013, along with a deposit of Rs.1,00,000/- proposing his candidature for the office of Director.
Section 149 of the Act inter alia stipulates the criteria of independence should a company propose to appoint an
independent director on its Board. As per the said Section 149, an independent director can hold office for two terms each of
5 (five) consecutive years on the Board of the company and he shall not be included in the total number of directors for
retirement by rotation.
The company has received a declaration from Mr. Virender Shankar that he meets with the criteria of independence as
prescribed under sub-section (6) of Section 149 of the Act.
No director or their relatives, except Mr. Virender Shankar, to whom the resolution relates, is interested or concerned in the
resolution.
The Board recommends the resolution set forth in Item No.7 for the approval of the members.
Annexure to the Notice
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
09
Details of Director to be appointed/ re-appointed at the Annual General Meeting to be held on Friday, September
23, 2016 in terms of Secretarial Standard -2.
Item No. 7
We provide below the brief resume, nature of expertise in specific functional areas, name of the companies in which the
director also holds the directorship, chairmanship/membership of the committees of the Board, if any (information provided
herein is restricted only to membership in Audit Committee, Nomination and Remuneration Committee & Corporate Social
Responsibility Committee), shareholding, etc.
NAME Mr. Virender Shankar (DIN: 00169553)
DATE OF BIRTH AND AGE October 30, 1958 Age: 57
DATE OF FIRST August 10, 2016
APPOINTMENT ON
BOARD IF ANY
QUALIFICATION B.com
Fellow Member of The Institute of Chartered Accountants of India
Associate Member of The Institute of Company Secretaries of India
EXPERIENCE More than 30 years experience covering wide range from accounts, taxation, fund
management, mergers and acquisitions, corporate governance and supply chain.
Besides this, he has been key member for Implementation of SAP, forming and
managing Employee Trusts ( Gratuity and Superannuation). He was also actively
involved in Strategy work related to new opportunities and economic analysis for India &
International operations, tax and Treasury advice for new subsidiaries formation. ?
Prior to Honeywell, he was a Member of the Supervisory Board of Schneider Electric
representing World Wide Employees WESOP. He was also member of the Board of
Directors of Schneider Electric in India and Srilanka and member of the Board of
Directors of all the subsidiaries of Schneider Electric in India.
DIRECTORSHIP HELD IN Nil
OTHER COMPANEISHe is Partner in Mathur Gupta & Associates, Chartered Accountants, Delhi
MEMBERSHIP/ –
CHAIRMANSHIP OF
COMMITTEES ACROSS
ALL COMPANIES
Annexure to the Notice (contd.)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
10
NUMBER OF SHARES Nil
HELD IN THE COMPANY
AS ON DATE OF THIS
NOTICE
TERMS AND CONDITIONS Mr. Virender Shankar has been appointed as Additional Independent Director with
OF APPOINTMENT effect from August 10, 2016.
As per Companies Act, it is proposed to appoint him as Independent Director for the
period of 5 years effective August 10, 2016; in the ensuing Annual General Meeting.
RELATIONSHIP WITH Mr. Virender Shankar is not related to any of the directors of the Company.
OTHER DIRECTORS, KEY
MANAGERIAL PERSONNEL
OF THE COMPANY
NUMBER OF MEETINGS Nil
OF THE BOARD ATTENDED
DURING THE YEAR
For and on Behalf of Board of
Honeywell Electrical Devices and Systems India Limited
Mr. Rohit Bansal
(DIN: - 07152089)
Date: August 22, 2016
Place: Pune
Annexure to the Notice (contd.)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report
11
Dear Members,
Your Directors have pleasure in presenting their Directors' Report of your Company along with the Balance Sheet and Profit
and Loss Account for the year ended March 31,2016
FINANCIAL RESULTS
Your company achieved a turnover of Rs. 14,842 Lacs and the profit after tax is Rs. 212 Lacs. The key aspects of financial
performance of the Company for the financial year 2015-2016 are tabulated below:
PARTICULARS 2015-16 2014-2015
Sales and Other Incom 14,842 14,460
Profit before depreciation and Interest 1,045 1012
Less: Depreciation and Interest 591 408
Profit before Tax 454 604
Provision for Tax
Current 273 131
Deferred Tax (31) 26
Profit After Tax 212 447
Add: Surplus brought forward from previous year 10,161 9,714
Balance carried to Balance Sheet 10,373 10,161
RESERVES
The Company has not transferred any amounts to reserves during the year. The Company has carried the amount of Profit
for the year i.e. Rs. 21,202,971/- to the Surplus Account.
DIVIDEND
In view of conserving the resources for future business growth of the Company, the directors do not recommend any
dividend for the year.
DEVELOPMENTS
The Financial Year 2015-16 has remained tough due to slowdown in Indian Economy (especially construction sector),
moderate inflation & high interest rates, however Indian currency remained relatively stable. During this period real estate
industry got impacted significantly as developers ended up with higher inventory as well as reduced capital expenders by
IT/ITES sector.
Rs. in Lacs
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
12
Further to this, high interest scenario made situation further difficult for the industry. During the year company has
introduced a new range citric catering medium segment and was well received in the market. The Circuit protection line
which company added to its portfolio last year is also getting good response from the market. With the circuit protection
range, we are able to offer “one-stop” solution to real estate developers. The company has also introduced small home safe
products to cater to residential segment. (USB Chargers, Auto Change overs etc.)
THE YEAR AHEAD
The real estate sector has been through a sluggish period for the last few years. However, we are seeing some
improvement in economy and real estate sector. Further government reform measures are expected to benefit real estate
sector, which will help our business favorably. Similarly, we are looking forward to strengthening our Circuit protection line.
In addition to this we will continue to strengthen our existing portfolio with new product range in lower end of midmarket
segment.
PEOPLE DEVELOPMENT AND INDUSTRIAL RELATIONS
Chennai facility once again received two awards from CII South region for EHS excellence in the factory. The Hopetown
factory Achieved Gold Award in quality circle organized by QCFI (Quality Circle Forum of India Haridwar chapter). The site
also achieved 2nd position in India ISC HOS Sub council Kaizen competition. The Management continues to invest on
employee devolvement initiatives and top talent retention programs. The two ways communication process between
Management and Employees has further strengthened with regular town hall meetings and leadership interactions.
DEPOSITS
In terms of the provisions of Sections 73 of the Act read with the relevant Rules of the Act, the Company has not accepted any
deposits during the year under review and as such, no amount of principal or interest was outstanding as on March 31, 2016.
SHARE CAPITAL
The Authorized Share Capital of the Company is Rs. 20,000,000/- (Rupees Two Crores Only) divided into 2,000,000
(Twenty Lakhs Only) Equity Shares of Rs. 10/- (Rupees Ten Only) each. The paid up Share Capital of the company is
951,640 Equity Shares of Rs. 10/- each amounting to Rs. 9,516,400/- (Rupees Ninety Five Lakh Sixteen Thousand and
Four Hundred Only).
MANAGEMENT STRUCTURE
During the period under review Mr. Vinayak Kashinath Deshpande resigned as Independent Director of the company with
effect from May 16 2016. The Board is thankful for his contribution and guidance during the tenure of his directorship and
wishes him the very best in their future endeavors.
As per the provisions of the Companies Act, 2013, Mr. Rohit Bansal – Whole Time Director , retires by rotation at the
forthcoming AGM and being eligible, offers himself for reappointment. The Board recommends his reappointment.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
13
The current Directors of the Company are as under:
Sl. No. Name of the Person Designation
1. Mr. Rohit Bansal Whole - time Director
2. Mr. Inder Jeet Singh Independent Director
3. Ms. Neelu Khatri Director
4. Mr. Chan Chee Leong (Mr. Derek Chan) Director
None of the Directors of the Company are disqualified under section 164(1) & 164(2) of the Companies Act, 2013.
STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTOR UNDER SUB – SECTION (6) OF SECTION
149:
The Company has received necessary declarations from each Independent Director under Section 149(7) of the Companies
Act, 2013, that he meets the criteria of Independence laid down in and Section 149(6) of the Companies Act, 2013
BOARD COMMITTEES
The Company has the following committees –
1. Audit Committee
2. Nomination and Remuneration Committee
3. Corporate Social Responsibility Committee
The composition of each of the above Committees, their respective role and responsibility is as detailed below –
AUDIT COMMITTEE
The Company has constituted an Audit Committee with the primary objective to monitor and provide effective supervision of
the Management's financial reporting process, to ensure accurate and timely disclosures, with highest levels of transparent,
integrity and quality of financial reporting. Currently the Committee is comprised of Mr. Inder Jeet Singh, Ms. Neelu Khatri
and Mr. Rohit Bansal. Mr. Vinayak Deshpande, who was member of Committee resigned as Independent Director with
effect from 16 May 2016.
NOMINATION AND REMUNERATION COMMITTEE
The Company has constituted Nomination and Remuneration Committee. The Committee is responsible for formulating
criteria for determining qualifications, positive attributes and independence of director, determining the remuneration of
individual members of the Board of Directors of the company. Currently the Committee is comprised of Mr. Inder Jeet Singh,
Ms. Neelu Khatri and Mr. Rohit Bansal. Mr. Vinayak Deshpande, who was member of Committee resigned as Independent
Director with effect from 16 May 2016.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
14
CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
The Company has constituted a Corporate Social Responsibility Committee. Currently the Committee is comprised of
Mr. Inder Jeet Singh, Ms. Neelu Khatri and Mr. Rohit Bansal, Mr. Vinayak Deshpande, who was member of Committee
resigned as Independent Director with effect from 16 May 2016.
Your Company has a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the
Company, which has been approved by the Corporate Social Responsibility Committee and the Board.
As part of its Corporate Social Responsibility (CSR) initiatives, the Company has undertaken the projects in accordance
with Schedule VII of the Companies Act, 2013. The annual report on Corporate Social Responsibility activities as required
under Sections 134 and 135 of the Companies Act, 2013 read with Rule 8 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 and Rule 9 of the Companies (Accounts) Rules, 2014 is provided in the report as
Annexure 2.
MEETINGS OF BOARD AND ITS COMMITTEES
The details of meetings of Board and its Committees and directors attending the same are given below:-
A. BOARD OF DIRECTORS
Name of Sadanand Vinayak Inder Jeet Neelu Rohit Anil Chan Frank Paul 1 2 5 Director Teje Deshpande Singh Khatri Bansal Ramchandra Chee Nonnenmann
3 4Kini Leong
Date of Meeting
April 30 2015 Yes No Yes NA NA Yes NA No
August 28 2015 NA Yes Yes Yes Yes Yes NA NA
October 15 2015 NA Yes Yes Yes Yes NA No NA
January 22 2016 NA Yes Yes Yes Yes NA Yes NA
1 th Resigned w.e.f. 28 August 20152 th Resigned w.e.f. 16 May 20163 thResigned w.e.f. 28 August 20154 th Appointed w.e.f. 28 August 2015
th Resigned w.e.f. 28 August 20155
VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the provisions of sub – section (10) of section 177 of the Companies Act, 2013, the Vigil Mechanism of the
Company, which also incorporates a whistle blower policy, includes Code of Ethics. Protected disclosures can be made by
a whistle blower through an e-mail, or telephone line. The policy has been displayed on Company's website at the link:
https://www.mkelectric.com/en-in/AboutUs/AboutMKElectricIndia/Documents/Vigil%20Mechanism%20%
28Whistle%20Blower%20Policy%29.pdf
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
15
COMPANYS' POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
In terms of provisions of clause (e) of sub – section (3) of section 134, the Company has formulated the criteria for
determining qualification, positive attributes and independence of a director and a policy relating to the remuneration for the
directors, key managerial personnel and other employees. The criteria and the policy is as under:
Policy relating to Directors
a. The person to be chosen as a Director shall be of high integrity with relevant expertise and experience so as to have a
diverse Board having expertise in the fields of Information Technology, sales /marketing, finance, taxation, law,
governance and general management.
b. In case of appointment of Independent Directors, the Board shall satisfy itself with regard to the independent nature of
the Directors vis-à-vis the Company so as to enable the Board to discharge its function and duties effectively.
c. The Board / Committee shall consider the following attributes / criteria, whilst recommending the candidature for
appointment as Director:
(i) Qualification, expertise and experience of the Directors in their respective fields;
(ii) Personal, Professional or business standing; and
(iii) Diversity of the Board.
d. In case of re-appointment of Non-Executive Directors, the Board shall take into consideration the performance
evaluation of the Director and his engagement level.
Remuneration Policy
The Company's remuneration policy is driven by the success and performance of the individual employees and the
Company. The Company pays remuneration by way of salary, benefits, perquisites and allowances (fixed component) and
performance incentives, commission (variable component) to its Managing Director and other Executive Directors. The
Company also proposes to remunerate its Independent Directors with profit-based commission subject to the limits laid
down under the Companies Act 2013.
IMPLEMENTATION OF RISK MANAGEMENT POLICY
In terms of the provisions of clause (n) of sub – section (3) of section 134 of the Companies Act, 2013, the Company has a
robust policy to identify, evaluate business risks and opportunities. The Company has in place a mechanism to identify,
assess, monitor and mitigate various risks to key business objectives. Major risks identified by the businesses and functions
are systematically addressed through mitigating actions on a continuing basis. This framework seeks to create
transparency, minimize adverse impact on the business objectives and enhance the Company's competitive advantage.
These are discussed at various department level meetings of the Company. The Company has identified various risks and
also has mitigation plans for each risk identified.
INTERNAL CONTROL SYSTEMS AND ADEQUACY OF INTERNAL FINANCIAL CONTROLS
The Board has adopted the policies and procedures for ensuring the orderly and efficient conduct of its business, including
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
16
adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
BOARD EVALUATION
The Board has carried out an annual evaluation of its own performance, performance of its Committees and of the directors
individually, as per the criteria laid down by the Nomination and Remuneration Committee. The evaluation was carried out
based on various parameters such as the participation in the Board & and its Committee meetings, contribution towards
accurate financial reporting, strategic guidance, risk mitigation, internal controls, governance, leadership and talent
development and managing external stakeholders. There was a separate meeting of the Independent Directors (without
the presence of non-independent directors and members of the management) to discuss the evaluation of the Board,
Committees and the Non-Executive Directors. The discussions covered both strategic and operational aspects of the
Board functioning, as well as the quality, content and timeliness of the flow of information between the Management and the
Board. The inputs from the meeting were shared with the Nomination and Remuneration Committee. The performance
evaluation of the Independent Directors was carried out by the entire Board.
SUBSIDIARY COMPANIES
The company has no subsidiary company as on the end of the financial year March 31, 2016. Further there were no
subsidiary companies which have become or ceased to be its subsidiaries, joint ventures or associate companies during
the year under review.
EXTRACTS OF THE ANNUAL RETURN
The extract of Annual Return of your company as on March 31, 2016 as provided under sub-section (3) of Section 92 has
been given in the prescribed Form MGT 9 as Annexure1.
RELATED PARTY TRANSACTIONS
There have been no materially significant related party transactions between the Company and the Directors, the
management, the subsidiaries or the relatives except for those disclosed in the financial statements. Particulars as
prescribed under contracts or arrangements with related parties referred to in Section 188(1) of the Companies Act, 2013
read with Rule 8 of Companies (Accounts) Rules, 2014 in Form AOC -2 is attached to the report as Annexure 3.
DIRECTORS' RESPONSIBILITY STATEMENT
In compliance with clause (c) of sub – section (3) of section 134 and sub – section (5) of section 134 of the Companies Act,
2013, your Directors confirm and state as follows:
1. That in preparation of the annual accounts, the applicable accounting standards have been followed along with proper
explanation relating to material departures.
2. That your Directors have selected such accounting policies and have applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at
the end of the financial year and of the profit of the Company for the period under review.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
17
3. That your Directors have taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities.
4. That the annual financial statements have been prepared on a going concern basis.
5. The directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such
system were adequate and operating effectively.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS MADE BY THE COMPANY
During the year, the Company has not made any loans or investments to any persons within the meaning of Section 186 and
has also not given any guarantees within the meaning of that section.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS AND OUTGO
The particulars as prescribed under clause (m) of sub – section (3) of section 134 of the Companies Act, 2013 read with Rule
8 of the Companies (Accounts) Rules, 2014, are set out in Annexure 4.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS
There are no significant material orders passed by the Regulators or Courts or Tribunal which would impact the going
concern status of the Company and its future operations.
AUDITORS AND AUDITORS REPORT
STATUTORY AUDITORS
Pursuant to the provisions of Section 139 of the Companies Act, 2013 and the rules framed there under M/s Deloitte
Haskins & Sells LLP (Firm Registration No. 117366W/W-100018) were appointed as the Statutory Auditors for a period of 5
years to hold office from the conclusion of the last AGM of the Company held on December 23, 2015, subject to ratification of
their appointment at every AGM. A resolution seeking ratification of their appointment forms part of the Notice of AGM.
QUALIFICATION(S) IN THE STATUTORY AUDITOR'S REPORT
We draw your attention to Note 38 regarding the total remuneration paid to the Managing Director and Whole-time
Director(s) of the Company as below:
a) ` 29,645,246 (from FY 2011-12 to FY 2014-15), which is in excess of the limits prescribed under Section 198 of the
Companies Act, 1956 / 197 of the Act read with Schedule XIII of the Companies Act, 1956 / Schedule V of the Act and
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 [collectively referred to as
“specific requirements”]; the Company has applied to the Central Government of India as per the specific requirements.
stb) ` 16,895,464 for the year ended 31 March, 2016, is subject to shareholders approval. Managerial remuneration of ₹
6,162,457 is in excess of the limits prescribed as per the specific requirements, as applicable. The Company is in the
process of seeking necessary approval from Central Government of India.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
18
In case the Company is unable to obtain the requisite approvals from the Central Government of India, the Company will
have to recover back the managerial remuneration paid in excess for the respective years. This matter was also qualified in stthe report of the predecessor auditors on the financial statements for the year ended 31 March 2015.
As required by Section 143 (3) of the Act, we report that-
(e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect
on the functioning of the Company.
(h) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses a qualified opinion on
the adequacy and operating effectiveness of the Company's internal financial controls over financial reporting: -
According to the information and explanations given to us and based on our audit, a material weakness has been identified
as at 31st March, 2016 relating to inadequate internal financial controls over financial reporting in respect of payment of
managerial remuneration. The Company has not obtained the approval from the Central Government as required by the
provisions of the Companies Act, 2013 and rules thereof, for the excess managerial remuneration paid during the financial
year 2015-16, more fully described in Note 38 to the financial statements which could potentially result in non-compliance
with the provision of Companies Act, 2013.
MANAGEMENT RESPONSE TO THE QUALIFICATIONS
The Management of the Company provides the following response in compliance with clause (f) of sub – section (3) of
Section134 of the Companies Act, 2013 to the adverse remark/qualification made by the statutory auditors in their reports
respectively:
The Directors wish to state that –
a. The Company is in the process of obtaining necessary approvals for waiver of excess managerial remuneration paid
from FY 2011-12 to FY 2014-15 in terms of provisions of the Companies Act.
b. The Company is in the process of obtaining approval of shareholders in the ensuing Annual General Meeting, for
waiver of excess managerial remuneration paid from FY 2015-2016 in terms of the provisions of the Companies Act.
The Company will then make necessary applications to Central Government for its approval in the matter.
COST AUDITORS
In terms of the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013, read with the
Companies (Audit and Auditors) Rules, 2014, Cost Audit is applicable to your Company for the financial year 2015-2016.
Your Company submitted its Cost Audit Report for the FY 2014-2015, duly audited by M/s Chandrashekar S Adawadkar,
Cost Accountants, with the Ministry of Corporate Affairs within the stipulated time period. The Board has reappointed him as
Cost Auditor for the year 2016-2017.
PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES
As the Company is an unlisted company, the Company is not required to disclose the details of employee remuneration in
this Report.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
19
DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
Your Company respects and values diversity reflected in various backgrounds, experiences, and ideas and is committed to
providing employees with a workplace that is free from discrimination or harassment. The Company has adopted a policy
on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Every employee is required to
complete mandatory online training on 'Prevention of Sexual Harassment at Workplace'. Senior employees and managers
are required to complete two-hour live training. The Company has Internal Complaints Committee (ICC) established in
accordance with the aforesaid Act for addressing sexual harassment incidents.
1 complaint on sexual harassment was received by the Company during the financial year under review and is open as on
March 31, 2016.
ACKNOWLEDGEMENT
Your Directors acknowledge the support and co-operation received from business partners and investors. The Directors
are proud and thankful to each and every employee, each of whom has contributed in the growth of the Company. The
support received from the Government of India was valuable and is thankfully acknowledged. We thank all our stakeholders
for the confidence reposed on us and for the support they have given in building the success of the Company.
For and on behalf of the Board of Directors
Rohit Bansal Neelu Khatri
Whole – time Director Director
DIN: 07152089 DIN: 07152087
thDate: 29 July 2016
Place: Pune
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
20
Annexure 1
EXTRACTS OF THE ANNUAL RETURN AS ON FINANCIAL YEAR ENDED MARCH 31, 2016[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and
Administration) Rules, 2014]
I. Registration and Other Details:
i) CIN:- U31901TN1984PLC011107
ii) Registration Date:22/08/1984
iii) Name of the Company: Honeywell Electrical Devices And Systems India Limited
iv) Category/Sub category of the Company: Company Limited by shares Indian Non-government Company
v) Address of the Registered Office and contact details: Dowlath Tower, 3 & 4 Floor, Taylors Road, Kilpauk,
Chennai – 600 010, Tamil Nadu
vi) Whether listed Company : No
vii) Name, Address and Contact details of Registrar or Transfer Agent if any: NIL
II. Principal Business Activities of the Company:
The business activities contributing 10% or more of the total turnover of the Company are as under:
Sl. No Name and Description of main products/ NIC code of the product/ Percentage of contribution to
Services Services total turnover (%)
01 Manufacturing and Trading of Electricals 31200 100%
devices and control systems
III. Particulars of Holding, Subsidiary and Associate Companies:
Sl. No Name and Address of the Company CIN/GLN Holding/ Subsidiary Percentage of Applicable
Associates or share held Section
1. NOVAR ED&S LTD. -------------- Holding Company 91.32 2(46)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
21
I.S
hare
ho
ldin
g P
att
ern
(Eq
uit
y s
ha
re c
ap
ital B
reaku
p a
s p
erc
en
tag
e o
f To
tal E
qu
ity)
i)C
ate
gory
– w
ise s
hare
hold
ing
Cate
go
ries o
f sh
are
ho
lders
No
. o
f sh
are
s h
eld
at
the b
eg
inn
ing
of
the
No
. o
f s
ha
res
he
ld a
t th
e e
nd
of
the
% c
ha
ng
e
year
ye
ar
du
rin
g
the
ye
ar
A. P
rom
ote
rs
(1)
India
n
a)
Indiv
idua
l--
----
----
----
----
b)
Centr
al G
ovt
----
----
----
----
–
c) S
tate
Govt
(s)
----
----
----
----
–
d)
Bodie
s C
orp
.--
----
----
----
--–
e)
Banks
/ F
I--
----
----
----
--–
f) A
ny
Oth
er
----
----
----
----
–
Su
b-t
ota
l (A
) (1
)--
----
----
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--–
(2)
Fore
ign
a)
NR
Is -
Indiv
iduals
----
----
----
----
–
b)
Oth
er
Indiv
iduals
----
----
----
----
–
c) B
odie
s C
orp
.--
8,6
9,1
00
8,6
9,1
00
91.3
2--
8,6
9,1
00
8,6
9,1
00
91
.32
--
d)
Banks
/ F
I--
----
----
----
--–
e)
Any
Oth
er
----
----
----
----
–
Su
b-t
ota
l (A
) (2
)--
8,6
9,1
00
8,6
9,1
00
91.3
2--
8,6
9,1
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8,6
9,1
00
91
.32
--
To
tal sh
are
ho
ldin
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f --
8,6
9,1
00
8,6
9,1
00
91.3
2--
8,6
9,1
00
8,6
9,1
00
91
.32
--
Pro
mo
ter
(A)
= (
A)(
1)+
(A)(
2)
B. P
ublic
Sh
are
hold
ing
1. In
stitu
tions
a)
Mutu
al F
unds
----
----
----
----
–
b)
Banks
/ F
I--
----
----
----
--–
c) C
entr
al G
ovt
----
----
----
----
–
d)
Sta
te G
ovt
(s)
----
----
----
----
--
D
em
at
Ph
ysic
al
To
tal
% o
f to
tal
Dem
at
Ph
ys
ica
lT
ota
l%
of
tota
l
sh
are
ss
ha
res
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
22
Cate
go
ries
of
sh
are
ho
lders
No
. o
f sh
are
s h
eld
at
the b
eg
inn
ing
of
the
No
. o
f s
ha
res
he
ld a
t th
e e
nd
of
the
% c
ha
ng
e
year
ye
ar
du
rin
g
the
ye
ar
e)
Ventu
re C
apita
l Funds
----
----
----
----
–
f) Insu
rance
Com
panie
s--
----
----
----
--–
g)
FIIs
----
----
----
----
–
h)
Fore
ign V
entu
re C
apita
l Funds
----
----
----
----
–
i) O
thers
(sp
eci
fy)
Tru
st--
----
----
----
--–
Su
b-t
ota
l (B
)(1)
----
----
----
----
--
2. N
on-I
nst
itutio
ns
a)
Bodie
s C
orp
.--
----
----
----
--–
i) India
n--
350
350
0.0
4--
45
04
50
0.0
5--
ii) O
vers
eas
----
----
----
----
–
b)
Indiv
idua
ls--
----
----
----
--–
i) Indiv
idua
l share
hold
ers
hold
ing n
om
inal
--82,1
90
82,1
90
8.6
4--
82
,09
08
2,0
90
8.6
3--
s
hare
cap
ital u
pto
Rs.
1 la
kh
ii) Indiv
idua
l share
hold
ers
hold
ing n
om
inal
----
----
----
----
–
sh
are
ca
pita
l in e
xcess
of R
s 1 la
kh
c) O
thers
(sp
eci
fy)
----
----
----
----
–
H
UF
Su
b-t
ota
l (B
)(2)
To
tal P
ub
lic
--82,5
40
82,5
40
8.6
8--
82
,54
08
2,5
40
8.6
8--
Sh
are
ho
ldin
g
(B)=
(B)(
1)+
(B)(
2)
C. S
hare
s held
by
----
----
----
----
–
Cust
odia
n for
GD
Rs
& A
DR
s
Gra
nd
To
tal
--9,5
1,6
40
9,5
1,6
40
100
--9
,51
,64
09
,51
,64
01
00
--
(A+
B+
C)
D
em
at
Ph
ysic
al
To
tal
% o
f to
tal
Dem
at
Ph
ys
ica
lT
ota
l%
of
tota
l
sh
are
ss
ha
res
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
23
ii) Shareholding of Promoters:
Sl. Shareholders Shareholding at the beginning of the year Shareholding at the end of the year No Name
1 Novar ED&S LTD 869100 91.32 Nil 869100 91.32 Nil Nil
No. of % of total %of Shares No. of % of total %of Shares % change in
Shares Shares of the Pledged / Shares Shares of the Pledged / shareholding
company encumbered company encumbered during the
to total shares to total shares year
iii) Change in Promoters' Shareholding ( please specify, if there is no change)
in Promoters' Shareholding during the year.
iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
There is no change
1 Reyaz Ratan Mama
At the beginning of the year 2000 0.21% 2000 0.21%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 2000 0.21% 2000 0.21%
(or on the date of separation, if separated during the year)
2 Mahendra Girdharilal
At the beginning of the year 1200 0.12% 1200 0.12%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 1200 0.12% 1200 0.12%
(or on the date of separation, if separated during the year)
3 For Manoj Jalan
At the beginning of the year 1100 0.11% 1100 0.11%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 1100 0.11% 1100 0.11%
(or on the date of separation, if separated during the year)
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
24
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
4 For Sheila P Bajaj
At the beginning of the year 800 0.08% 800 0.08%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 800 0.08% 800 0.08%
(or on the date of separation, if separated during the year)
5 For Prakash H Bajaj
At the beginning of the year 700 0.07% 700 0.07%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 700 0.07% 700 0.07%
(or on the date of separation, if separated during the year)
6 For Rajkumar S Mehta
At the beginning of the year 700 0.07% 700 0.07%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 700 0.07% 700 0.07%
(or on the date of separation, if separated during the year)
7 For Parimal K Shah
At the beginning of the year 600 0.06% 600 0.06%
Date wise Increase / Decrease in Promoters Share NIL NIL NIL NIL
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 600 0.06% 600 0.06%
(or on the date of separation, if separated during the year)
8 For Ajay Sheth
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share NIL NIL NIL NIL
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
25
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
9 For Joseph Louise
At the beginning of the year 1700 0.18% NIL NIL
Date wise Increase / Decrease in Promoters Share
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
Transfer on 22 January 2016 (1700) NIL NIL NIL
At the End of the year NIL NIL NIL NIL
(or on the date of separation, if separated during the year)
10 For Ganesh Shridhar Shanbag
At the beginning of the year NIL NIL NIL NIL
Date wise Increase / Decrease in Promoters Share
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
Transfer on 28 August 2015 25050 2.63% 25050 2.63%
At the End of the year 25050 2.63% 25050 2.63%
(or on the date of separation, if separated during the year)
11 Jerome Hereford Lazaro
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
12 Nirmala Murali
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
26
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
13 Darius Cama
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
14 Dhaval Thakkar
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
15 Ganapati Kashi
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
16 Indra Saraf
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
17 Kamla Balumal Khatri
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
27
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
18 MICHEAL GEORGE MIRANDA
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
19 RAJNI KHOKHANI
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
20 SAJU I BHOJWANI
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
21 SHAH ALAM PAWASKAR
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
22 SACHIN P BAJAJ
At the beginning of the year 500 0.05% 500 0.05%
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
28
Sl. Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
23 AMBARAM RAMJI ALIPURIA
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
24 CHANDRAMANIBEN D JOSHI
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share Nil Nil Nil Nil
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the End of the year 500 0.05% 500 0.05%
(or on the date of separation, if separated during the year)
25 NITESH A THAKKAR
At the beginning of the year 500 0.05% 500 0.05%
Date wise Increase / Decrease in Promoters Share
holding during the year specifying the reasons for
increase / decrease (e.g. allotment / transfer / bonus/
sweat equity etc): Nil Nil Nil Nil
At the End of the year
(or on the date of separation, if separated during the year) 500 0.05% 500 0.05%
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
29
Sl. Particulars Shareholding at the Cumulative Shareholding
No beginning of the year during the year
No. of Shares % of total No. of shares % of total
shares of the shares of the
Company company
v) Shareholding of Directors and Key Managerial Personnel:
1. At the beginning of the year 100 0.01% 100 0.01%
2. Date wise Increase / Decrease in Shareholding during Nil Nil Nil Nil
the year specifying the reasons for increase / decrease
(e.g. allotment / transfer / bonus/ sweat equity etc.)
3. At the End of the year(or on the date of separation, 100 0.01% 100 0.01%
if separated during the year)
*Resigned with effect from 28 August 2015
For Mr. Sadanand Vitthal Teje*
II. Indebtedness: NIL
Indebtedness of the Company including interest outstanding/accrued but not due for payment.
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year NIL NIL NIL NIL
i) Principal Amount NIL NIL NIL NIL
ii) Interest due but not paid NIL NIL NIL NIL
iii) Interest accrued but not due NIL NIL NIL NIL
Total (i+ii+iii) NIL NIL NIL NIL
Change in Indebtedness during the financial year NIL NIL NIL NIL
– Addition NIL NIL NIL NIL
– Reduction NIL NIL NIL NIL
Indebtedness at the end of the financial year NIL NIL NIL NIL
i) Principal Amount NIL NIL NIL NIL
ii) Interest due but not paid NIL NIL NIL NIL
iii) Interest accrued but not due NIL NIL NIL NIL
Total (i+ii+iii) NIL NIL NIL NIL
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
30
III. Remuneration of Directors And Key Managerial Personnel:
A. Remuneration to Managing Director, Whole-time Directors and/or Manager
1 Gross salary 4,153,188 2,343,809 10,733,007 17,230,004
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
2 Stock Option - - - -
3 Sweat Equity - - - -
4 Commission
- as % of profit
- others, specify - - - -
5 Others, please specify 66,528 106,580 357,465 530,573Contribution to provident and other funds
Total (A) 42,19,716 2,450,389 11,090,472 17,760,577
Ceiling as per the Act - - 120,000,000 -
Sl. Particulars of Remuneration Name of Managing director and Whole time director Total No Amount
Sadanand Vitthal Anil Ramachandra Rohit Bansal Teje Kini
B. Remuneration to other directors:
Certain directors of the Company are employees of the ultimate holding company and are remunerated by that company. Resultantly, remuneration of such directors has not been included in this section. --NA--
C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTDNot applicable since the company does not have any Key Managerial Personnel other than directors.
IV. Penalties / Punishment/ Compounding of Offences
There were no penalties or punishments levied on the company during the year. Further, there was no necessity for the Company to compound any offence.
For and on behalf of the Board of Directors
Rohit Bansal Neelu Khatri
Whole – time Director Director
DIN: 07152089 DIN: 07152087
thDate: 29 July 2016
Place: Pune
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
31
Annexure - 2
Annual Report on Corporate Social Responsibility (CSR) Activities
1. A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be
undertaken and a reference to the web-link to the CSR policy and projects or program
We, at Honeywell, are committed to creating tools and solutions to improve people's quality of life and to making a
measurable difference in our own neighborhoods and communities. Honeywell, in partnership with leading public and
non-profit institutions, has developed programs to address needs in the communities it serves. By applying the same
rigor and business tools we build such programs.
In 2014-15 the Company funded Safe Kids at Home India program, an educational program for teachers and parents to
help prevent and reduce common injuries to children at home. Safe Kids at Home has trained 37,000+ children in Pune
about home safety in the first year. Many of the Company's employees are participating in training conducted by Safe
Kids Foundation India and becoming volunteers.
With the 2015-16 CSR commitment, the Company added a new not-for-profit partner Agastya International
Foundation (AIF). Agastya International Foundation (AIF) is a Bangalore based non-profit organisation that brings
innovative hands-on science education and peer-to-peer learning to economically disadvantaged children and
government schoolteachers across India.
Weblink of CSR Policy – https://www.mkelectric.com/en-in/AboutUs/AboutMKElectricIndia/Documents/ CORPORATE_
SOCIAL_RESPONSIBILITY_POLICY.pdf
2. The Composition of CSR Committee
The Company has constituted a Corporate Social Responsibility Committee. Currently the Committee is comprised of
Mr. Inder Jeet Singh, Ms. Neelu Khatri and Mr. Rohit Bansal. Mr. Vinayak Deshpande, who was member of Committee
resigned as Independent Director with effect from 16 May 2016.
3. Average net profit of the company for last three financial years – Rs. 891 lacs
4. Prescribed CSR Expenditure (2% of the amount as in item 3 above) – Rs. 17.82 lacs
5. Details of CSR spent during the financial year
(a) Total amount spent for the financial year - During the period under review, your Company has contributed a
sum of Rs. 17.82 lacs towards its CSR commitment. Of this, Rs. 17.82 lacs was contributed to Agastya
International Foundation for the aforementioned project, which will be spent by Agastya International Foundation
over the period 2016-19.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
32
(b) Amount unspent, if any - NIL
(c) Manner in which the amount spent during the financial year is detailed below
(1) CSR project or activity identified Agastya International Foundation science centers,
mobile science labs, and student mentors
(2) Sector in which the Project is covered Education
(3) Projects or programs
(1) Local Area or other (1) Bangalore, Karnataka, and NCR
(2) Specify the State and district where projects (2) Karnataka, NCR
or programs was undertaken
(4) Amount outlay(budget) projects or programs wise Rs 17.82 lacs
(5) Amount spent on the projects or programs
Subheads
(1) Direct expenditure on projects or program (1) Rs. 17.82 lacs
(2) Overheads (2) Nil
(6) Cumulative expenditure upto the reporting period Rs. 17.82 lacs
(7) Amount spent: Through implementing agency:
Direct or through implementing agency Agastya International Foundation
Address: No. 101, Varsav Plaza, 12,
Jayamahal Main Road, Bangalore - 560 046
6. Responsibility Statement
The CSR committee confirms that the implementation and monitoring of CSR Policy, is in compliance with CSR
objectives and Policy of the company.
For and on behalf of the Board of Directors
Rohit Bansal Neelu Khatri
Whole – time Director Director
DIN: 07152089 DIN: 07152087
thDate: 29 July 2016
Place: Pune
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
33
Annexure 3
Form No. AOC-2
[Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014]
Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain arms' length transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm's length basis -
None
2. Details of material contracts or arrangement or transactions at arm's length basis –
All the transactions are on ongoing basis and in the ordinary course of business and at Arm's length and are disclosed
in the Financial Statements.
Directors’ Report (contd.)
For and on behalf of the Board of Directors
Rohit Bansal Neelu Khatri
Whole – time Director Director
DIN: 07152089 DIN: 07152087
thDate: 29 July 2016
Place: Pune
34
Annexure 4
Details of conservation of energy, technology absorption, foreign exchange
earnings and outgo
(a) Conservation of energy
Your Company continues to make every effort to conserve energy required for all its operations. Some of the key
initiatives undertaken during the period ended March 31, 2016 for the same are as under:
Factory at Chennai
– Achieved the Energy Conservation of 27408 KWH (Units) through Retro fitment of Energy Efficient servo Drive for
Hydraulic System in Higher capacity Injection Moulding
– Reduced the Power consumption of around 43230Kwh/ Annum through replacement of conventional induction
motor to Variable Speed Drive system in Air compressor system
– Reduced the 2400 KWH Power consumption/ Annum in Factory Lighting system through T5 and LED light fittings
Factory at Hope Town, Dehradun, Uttaranchal
– Saving In diesel wastage through usage of 900 ltrs Tank
– Daylight optimization by installation roof ventilator
– Replacing 15 HPMV street lights with solar light
– Reduction in electricity Bill by improving Power Factor
– Repair and Overhaul of Water piping to capture leakage
– Installation solar water heater for canteen, pantry & R&D washroom
– Reduced the 1500 KWH Power consumption/ Annum in Factory Lighting system through T5 and LED light fittings
(b) Technology absorption
Your Company is an affiliate Company of Honeywell International Inc., and on merits it continues to have access to
some of the latest products and technology of the parent Company.
(c) Foreign exchange earnings and Outgo
During the year, the total foreign exchange used was Rs. 2,865/- Lakhs and the total foreign exchange earned was
Rs. 3,664/- Lakhs
For and on behalf of the Board of Directors
Rohit Bansal Neelu Khatri
Whole – time Director Director
DIN: 07152089 DIN: 07152087
thDate: 29 July 2016
Place: Pune
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Directors’ Report (contd.)
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Independent Auditors’ Report
35
TO THE MEMBERS OF HONEYWELL ELECTRICAL DEVICES AND SYSTEMS INDIA LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of HONEYWELL ELECTRICAL DEVICES AND SYSTEMS stINDIA LIMITED (“the Company”), which comprise the Balance Sheet as at 31 March, 2016, the Statement of Profit and
Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other
explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013
(“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in accordance with the accounting principles generally
accepted in India, including the Accounting Standards specified under section 133 of the Act, as applicable. This
responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order
under section 143 (11) of the Act.
We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit
opinion on the financial statements.
Basis for Qualified Opinion
We draw your attention to Note 38 regarding the total remuneration paid to the Managing Director and Whole-time
Director(s) of the Company as below:
36
a) ₹ 29,645,246 (from FY 2011-12 to FY 2014-15), which is in excess of the limits prescribed under Section 198 of the
Companies Act, 1956 / 197 of the Act read with Schedule XIII of the Companies Act, 1956 / Schedule V of the Act and
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 [collectively referred to as
“specific requirements”]; the Company has applied to the Central Government of India as per the specific requirements.
stb) ₹ 16,895,464 for the year ended 31 March, 2016, is subject to shareholders approval. Managerial remuneration of
₹ 6,162,457 is in excess of the limits prescribed as per the specific requirements, as applicable. The Company is in the
process of seeking necessary approval from Central Government of India.
In case the Company is unable to obtain the requisite approvals from the Central Government of India, the Company will
have to recover back the managerial remuneration paid in excess for the respective years. This matter was also qualified in st the report of the predecessor auditors on the financial statements for the year ended 31 March 2015.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the
matter described in the Basis for Qualified Opinion paragraph above, the aforesaid financial statements give the
information required by the Act in the manner so required and give a true and fair view in conformity with the accounting stprinciples generally accepted in India, of the state of affairs of the Company as at 31 March, 2016, and its profit and its
cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion,
proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in
agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards prescribed under
section 133 of the Act, as applicable.
e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse
effect on the functioning of the Company.
stf) On the basis of the written representations received from the directors as on 31 March, 2016 taken on record by stthe Board of Directors, none of the directors is disqualified as on 31 March, 2016 from being appointed as a
director in terms of Section 164 (2) of the Act.
g) The qualification relating to the maintenance of accounts and other matters connected therewith are as
stated in the Basis for Qualified Opinion paragraph above.
h) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses a
qualified opinion on the adequacy and operating effectiveness of the Company's internal financial controls over
financial reporting.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Independent Auditors’ Report (contd.)
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
(Membership No. 208238)
Place: PunethDate: 29 July 2016
i) With respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the
explanations given to us:
(a) The Company has disclosed the impact of pending litigations on its financial position in its financial statements
– Refer Note 24 to the financial statements;
(b) The Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses;
(c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and
Protection Fund by the Company.
2. As required by the Companies (Auditor's Report) Order, 2016 (“the Order”) issued by the Central Government in terms
of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the
Order.
ANNEXURE “A” TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143
of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of HONEYWELL ELECTRICAL DEVICES AND stSYSTEMS INDIA LIMITED (“the Company”) as of 31 March, 2016 in conjunction with our audit of the financial statements
of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the Company considering the essential components of
37
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Independent Auditors’ Report (contd.)
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of
adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.
Auditors' Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established
and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the Company's internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company's internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance
with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to
the risk that the internal financial control over financial reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Annexure to Independent Auditors’ Report
38
Qualified Opinion
According to the information and explanations given to us and based on our audit, a material weakness has been identified stas at 31 March, 2016 relating to inadequate internal financial controls over financial reporting in respect of payment of
managerial remuneration. The Company has not obtained the approval from the Central Government as required by the
provisions of the Companies Act, 2013 and rules thereof, for the excess managerial remuneration paid during the financial
year 2015-16, more fully described in Note 38 to the financial statements which could potentially result in non-compliance
with the provision of Companies Act, 2013.
A 'material weakness' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting,
such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial
statements will not be prevented or detected on a timely basis.
In our opinion, to the best of our information and according to the explanations given to us, except for the effect of the
material weakness described above on the achievement of the objectives of the control criteria, the Company has
maintained, in all material respects, adequate internal financial controls over financial reporting and such internal financial stcontrols over financial reporting were operating effectively as at 31 March, 2016, based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in
the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
(Membership No. 208238)
Place: PunethDate: 29 July 2016
ANNEXURE B TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)
( i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation
of fixed assets.
(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of
five years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According
to the information and explanations given to us, no material discrepancies were noticed on such verification.
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
39
Annexure to Independent Auditors’ Report (contd.)
(c) According to the information and explanations given to us and the records examined by us and based on the
examination of the registered sale deeds in respect of the land properties and property tax/related compliance
documents in respect of the building properties, provided to us, we report that, the title deeds, comprising all the
immovable properties of land and buildings which are freehold, are held in the name of the Company as at the
balance sheet date.
(ii) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals
and no material discrepancies were noticed on physical verification.
(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or
other parties covered in the register maintained under section 189 of the Act.
(iv) The Company has not granted any loans, made investments or provide guarantees and hence reporting under clause
3 (iv) of the Order is not applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit and hence
reporting under clause 3 (v) of the Order is not applicable.
(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Act. We
have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and
Audit) Rules, 2014, as amended prescribed by the Central Government under sub-section (1) of Section 148 of the
Act, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have,
however, not made a detailed examination of the cost records with a view to determine whether they are accurate or
complete.
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has been regular has generally been regular in depositing undisputed statutory dues, including
Provident Fund, Employees' State Insurance, Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty,
Value Added Tax, cess and other material statutory dues applicable to it to the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income-
tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, cess and other material statutory stdues in arrears as at 31 March, 2016 for a period of more than six months from the date they became payable,
except as mentioned below:
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
40
Annexure to Independent Auditors’ Report (contd.)
Nature of Dues Amount ( ) Period to which Due Date Date of subsequent
the Amount Relates payment
₹
Service tax 76,435 2014-15 06-Oct-14 8-Jul-16
Service tax 304,466 2014-15 06-Oct-14 8-Jul-16
Service tax 40,510 2015-16 06-Jan-15 8-Jul-16
Service tax 4,944 2015-16 06-Jan-15 8-Jul-16
Service tax 1,630 2015-16 06-May-15 8-Jul-16
Service tax 3,603 2015-16 06-Sep-15 8-Jul-16
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
41
( c) Details of dues of Income-tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, and Value Added Tax which sthave not been deposited as on 31 March, 2016on account of disputes are given below:
Nature of Due Forum where Dispute Period to which Amount Unpaid Amount paid
is Pending amount relates ( ) under protest ( )₹ ₹
Income Tax Act, 1961
Income tax High Court AY 2005-06 20,578,014 19,230,916
Income tax Commissioner of Income Tax, AY 2009-10 to 48,638,641 11,616,050
Appeals AY 2012-13
Respective Sales Tax Laws - Value Added Tax (VAT), Central Sales Tax (CST), Works Contract Tax (WCT) and Entry Tax
CST Additional Commissioner, VAT-Delhi AY 2009-10 to 33,610,079 -
AY 2012-13
CST Additional Commissioner, FY 2010-11 2,650,773 -
VAT - Maharashtra
CST Additional Commissioner, FY 2011-12 31,017,577 -
VAT - TamilNadu
VAT Deputy Commissioner, AY 2008-09 to 88,560,000 -
VAT -Dehradun AY 2011-12
CST Deputy Commissioner, AY 2008-09 to 592,700,000 -
CST-Dehradun AY 2011-12
CST Assessing authority, CST - Haryana AY 2013-14 3,460,500 -
(viii) The Company has not taken any loans or borrowings from financial institutions, banks and government or has not
issued any debentures. Hence reporting under clause 3 (viii) of the Order is not applicable to the Company.
(ix) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or
term loans and hence reporting under clause 3 (ix) of the Order is not applicable.
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company
and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us during the year, the Company has
paid/provided managerial remuneration in excess of the limits and approvals prescribed under section 197 read with
Schedule V to the Act to the following managerial personnel:
Annexure to Independent Auditors’ Report (contd.)
The Company is in the process of
submission of the application to the
Central Government seeking waiver
from recovery of the excess
managerial remuneration paid
during the financial year 2015-16.
Managerial Excess amount of Financial year Treatment of the Steps taken by the Company
Position remuneration paid/ ending excess remuneration for securing refund
provided ( ) in the respective year
financial statements
₹
Managing Director 3,853,188
Whole-time Director 2,309,269
Included in the profit
and loss account
Remuneration paid to managerial personnel during earlier years from FY 2011-12 to FY 2014-15, included ₹ 29,645,246,
which is in excess of the limits prescribed under Section 198 of the Companies Act, 1956 / 197 of the Act read with Schedule
XIII of the Companies Act, 1956 / Schedule V of the Act and the relevant rules thereon. In respect of these payments, the
Company has made necessary applications for approval from the Central Government of India which are awaited.
(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanations given to us the Company is in compliance with
Section 188 and 177 of the Act, where applicable, for all transactions with the related parties and the details of related
party transactions have been disclosed in the financial statements etc. as required by the applicable accounting
standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with its directors or persons connected with him and hence provisions of
section 192 of the Act are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
(Membership No. 208238)
Place: PunethDate: 29 July 2016
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
42
Annexure to Independent Auditors’ Report (contd.)
st31 March, 2016
Note As at March 31, 2016
Rs.
As at March 31, 2015
Rs.
43
Equity and Liabilities
Shareholders' Fund
Share Capital 2 9,516,400 9,516,400
Reserves and Surplus 3 1,037,356,172 1,016,153,201
1,046,872,572 1,025,669,601
Non-current Liabilities
Long-term Provisions 4 20,218,429 25,063,875
20,218,429 25,063,875
Current Liabilities
Trade Payables 5
- Total outstanding dues of Micro Enterprises and 162,476 45,048,799
Small Enterprises
- Total outstanding dues of creditors other than Micro 238,830,699 198,282,800
Enterprises and Small Enterprises"
Other Current Liabilities 6 63,751,824 57,382,993
Short-term Provisions 7 12,804,206 11,504,391
315,549,205 312,218,983
Total 1,382,640,206 1,362,952,459
Assets
Non-current assets
Fixed assets
- Tangible Assets 8(a) 151,282,081 168,446,988
- Intangible Assets 8(b) 1,418,241 1,418,241
Deferred Tax Assets (net) 9 19,946,810 16,848,913
Long-term Loans and Advances 10 178,558,879 203,797,669
351,206,011 390,511,811
Current assets
Inventories 11 229,486,553 225,213,348
Trade Receivables 12 440,324,836 377,731,036
Cash and Bank Balances 13 340,130,409 345,596,221
Short-term Loans and Advances 14 18,611,552 17,197,833
Other Current Assets 15 2,880,845 6,702,210
1,031,434,195 972,440,648
Total 1,382,640,206 1,362,952,459
The accompanying notes are an integral part of these financial statements.
In terms of our report of even date.
For Deloitte Haskins & Sells LLP For and on behalf of the Board
Chartered Accountants
Sunil S Kothari Rohit Bansal Neelu Khatri
Partner Director Director
Membership No: 208238
Place: Pune Place: Pune
Date: July 29, 2016 Date: July 29, 2016
Note For the year ended March 31, 2016
Rs.
For the year ended March 31, 2015
Rs.
Revenue from Operations (gross) 16 1,463,923,000 1,399,040,632
Less: Excise Duty 4,510,902 3,457,147
1,459,412,098 1,395,583,485
Other Income 17 24,847,281 50,432,309
Total Revenue 1,484,259,379 1,446,015,794
Expenses
Cost of Materials Consumed 18 489,877,501 464,330,329
Purchases of Stock-in-trade 32 239,841,876 238,661,157
Changes in Inventories of Finished Goods, Work-in- 19 10,124,138 44,564,844
progress and Stock-in-trade
Employee Benefits Expense 20 283,521,035 253,037,170
Finance Costs 21 2,842,467 1,987,546
Depreciation and Amortisation (net) 8(d) 56,242,452 38,758,941
Other Expenses 22 356,426,364 344,239,799
Total Expenses 1,438,875,833 1,385,579,786
Profit Before Tax 45,383,546 60,436,008
Tax Expenses
- Current Tax 36,160,994 17,012,120
- Reversal of Current Tax in respect of Previous Years 2,435,142 (2,149,698)
- Minimum Alternate Tax Credit (for the Previous Years) (11,317,664) (1,747,934)
- Deferred Tax (3,097,897) 2,601,143
Profit for the year 21,202,971 44,720,377
Earnings per Share
Nominal Value per share Rs.10/- 36
- Basic and Diluted 22.28 46.99
The accompanying notes are an integral part of these financial statements.
In terms of our report of even date.
For Deloitte Haskins & Sells LLP For and on behalf of the Board
Chartered Accountants
Sunil S Kothari Rohit Bansal Neelu Khatri
Partner Director Director
Membership No: 208238
Place: Pune Place: Pune
Date: July 29, 2016 Date: July 29, 2016
4444
Note For the year ended March 31, 2016
Rs.
For the year ended March 31, 2015
Rs.
A. Cash flow from operating activities:
Profit before tax 45,383,546 60,436,008
Adjustments:
Depreciation and Amortisation 56,242,452 38,758,941
Provision for Doubtful Debts (3,369,151) 1,715,481
AFDA Reversal for subsequent collections 6,887,959 -
Bad Debts 4,194,484 695,948
Provision for Retirement Benefits 7,289,091 (2,446,223)
Interest Income (19,862,972) (29,701,346)
Provision/Liabilities written back to the extent no longer required (1,908,736) (20,730,963)
Provision for Warranty 9,207,028 12,142,111
Provision for Indirect Tax Matters 1,500,000 -
Loss on Sale of Fixed Assets - 357,317
Unrealised Foreign Exchange (gain)/loss (1,108,111) (636,263)
Interest Expense 2,842,467 1,987,546
Operating profit before working capital changes 107,298,057 62,578,556
Adjustments for working capital changes:
(Increase) / Decrease in Inventories (4,273,205) 43,524,055
(Increase) / Decrease in Trade and Other Receivables (64,074,671) (27,717,785)
Increase / (Decrease) in Trade and Other Payables (20,418,760) (42,393,435)
Cash generated from operations 18,531,421 35,991,391
Less: Income tax paid (24,606,678) (18,759,981)
Net Cash generated from / (used in) operations (A) (6,075,257) 17,231,410
B. Cash flow from investing activities
Purchase of Fixed Assets (20,320,465) (65,005,619)
Proceeds on Sale of Fixed Assets 416,227 345,531
Interest Received 20,556,648 30,756,258
Net Cash generated from / (used in) Investing activities (B) 652,410 (33,903,830)
C. Cash flow from financing activities - -
D. Net cash used during the year ( A + B + C ) (5,422,847) (16,672,420)
Cash and Cash Equivalents at the beginning of the year 345,596,221 362,311,604
Effect of Exchange difference on balances with banks in foreign currency (42,963) (42,963)
Cash and Cash Equivalents at the end of the year 340,130,409 345,596,221
4445
Note As atMarch 31, 2016
Rs.
As atMarch 31, 2015
Rs.
Cash and Cash Equivalents
Balances with Banks:
- In Current Accounts 27,595,317 21,034,785
- In Exchange Earners Foreign Currency Account 26,535,092 24,561,436
- Deposits with original maturity less than 3 months 100,000,000 300,000,000
Other Bank Balances
- Deposits with original maturity more than 3 months 186,000,000 -
340,130,409 345,596,221
Note:
1. The above Cash Flow Statement has been prepared under the Indirect Method as set out in Accounting
Standard - 3 (AS 3) on Cash Flow Statement
In terms of our report of even date.
For Deloitte Haskins & Sells LLP For and on behalf of the Board
Chartered Accountants
Sunil S Kothari Rohit Bansal Neelu Khatri
Partner Director Director
Membership No: 208238
Place: Pune Place: Pune
Date: July 29, 2016 Date: July 29, 2016
4446
47
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes
Company Profile
Honeywell Electrical Devices and Systems India Limited, a Public Limited Company was incorporated in India on August
22,1984. The Company is a subsidiary of Novar ED&S Limited, U.K. The principal activities of the Company include
manufacturing and trading of electrical devices and control systems viz. Switches, Sockets, Cable Management Systems,
Lighting Management Systems and Other Wiring Devices.
1 Significant Accounting Policies
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared in accordance with the generally accepted accounting principles in
India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (Accounts) Rules, 2014, the existing Accounting Standards notified under the
Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to
comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act,
1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the
Companies Act, 2013. All the assets and liabilities have been classified as current or non-current as per the
Company's normal operating cycle and other criteria set out in the Schedule II of the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of assets for processing and their realisation in cash
and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -
non current classification of assets and liabilities."
1.2 Use of estimates
The preparation of the financial statements in conformity with generally accepted accounting principles in India
requires the management to make estimates and assumptions that affect the reported amount of assets and
liabilities as of the Balance Sheet date, reported amount of revenue and expenses for the year and disclosure of
contingent liabilities as of the Balance Sheet date. The estimates and assumptions used in the accompanying
financial statements are based upon the management's evaluations of the relevant facts and circumstances as of
the date of the financial statements. Actual results could differ from these estimates and the differences between
the actual results and the estimates are recognised in the periods in which the results are known/materialise.
1.3 Fixed Assets
Tangible assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment
losses, if any. Cost comprises of cost of acquisition, cost of improvement and any attributable cost of bringing the
asset to its working condition for intended use. Subsequent expenditures related to an item of tangible asset are
added to its book value only if they increase the future benefits from the existing asset beyond its previously
assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets, which are carried at
cost are recognised in the Statement of Profit and Loss."
Based on the technical evaluation carried out, depreciation on tangible assets is provided, on a pro-rata basis, on
the straight-line method over the following estimated useful lives of the assets. Technical evaluation parameters
such as nature of assets and its utility for business activities, estimated usage, service support, availability of
spares and technological changes were considered.The estimates of useful lives of the assets based on technical
evaluation have not undergone a change on account of transition to Companies Act ,2013.
48
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Asset Useful Life followed by the under Schedule II of the
Company Companies Act, 2013(Years) (Years)
Buildings 30 30
Plant and Machinery 10 15 *
Electrical Installation 10 10
Tooling 4 15
Furniture and Fixtures 10 10
Vehicles 4 8
Office Equipments 6 5
Computer 3 3
Useful Life prescribed
Notes (contd.)
* Based on Single shiftAll assets individually costing Rs.5000/- and below are fully depreciated in the year of addition.
Intangible assets are stated at cost of acquisition less accumulated amortisation/ impairment losses, if any.
Intangible assets relating to Computer Software are amortised on Straight line method over a period of four years
based on useful life and Leasehold Rights over Land and Building are amortised over the period of lease.
Impairment of assets
Assessment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and
intangible) may be impaired. For the purpose of assessing impairment, the smallest identifiable group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets
or groups of assets, is considered as a cash generating unit. If any such indication exists, an estimate of the
recoverable amount of the asset/cash generating unit is made. Assets whose carrying value exceeds their
recoverable amount are written down to the recoverable amount. Recoverable amount is higher of an asset’s or
cash generating unit’s net selling price and its value in use. Value in use is the present value of estimated future
cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may no longer exist or may have decreased.
1.4 Inventories
Inventories are stated at lower of cost and net realisable value. Cost is determined on weighted average basis.
The cost of finished goods comprises raw materials, direct labour, other direct costs and related production
overheads. Cost of trading goods is ascertained on weighted average cost method. Net realisable value is the
estimated selling price in ordinary course of business, less the estimated cost of completion and the estimated
costs necessary to make the sale.
Provisions are made for slow/ non-moving and obsolete inventories, if any,
1.5 Foreign Currency Transactions
Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Subsequent Recognition
As at the reporting date, non-monetary items which are carried in terms of historical cost denominated in a foreign
49
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
currency are reported using the exchange rate at the date of the transaction. All non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange
rates that existed when the values were determined.
All monetary assets and liabilities in foreign currency are translated at the year-end at the closing exchange rate
and the resultant exchange differences are recognised in the Statement of Profit and Loss.
Forward exchange contract
Forward exchange contracts outstanding as at the year end on account of firm commitment / highly probable
forecast transactions are marked to market and the losses, if any, are recognised in the Statement of Profit and
Loss and gains are ignored in accordance with the Announcement of Institute of Chartered Accountants of India on
‘Accounting for Derivatives’ issued in March 2008.
1.6 Revenue Recognition
Sale of products is recognised when all significant risks and rewards of ownership are transferred to the customer
and no significant uncertainty exists regarding the amount of consideration that is derived from the sale of goods.
Sales are recognised net of trade discounts, rebates, sales tax and excise duties."
1.7 Interest Income
Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rates
applicable.
1.8 Employee Benefits
a) Provident Fund
Contribution towards provident fund for employees is made to the regulatory authorities, where the Company has
no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not
carry any further obligations, apart from the contributions made on a monthly basis. The Company recognises such
contribution as expense in the Statement of Profit and Loss.
b) Superannuation Fund
This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation fund
administered by Life Insurance Corporation of India. The Company has no further obligation of future
superannuation benefits other than its annual contributions and recognises such contributions as expense as and
when due.
c) Gratuity
The Company provides for gratuity, a defined benefit plan (the “Gratuity Plan”) covering eligible employees in
accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested
employees at retirement, death, incapacitation or termination of employment, of an amount based on the
respective employee’s salary and the tenure of employment. The Company’s liability is actuarially determined by
an independent actuary (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains
are recognised in the Statement of Profit and Loss in the year in which they arise.
d) Compensated absences
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the
end of the year are treated as short term employee benefits. The obligation towards the same is measured at the
Notes (contd.)
expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of
the unused entitlement as at the year end.Accumulated compensated absences, which are expected to be availed
or encashed beyond 12 months from the end of the year are treated as other long term employee benefits. The
Company’s liability is actuarially determined by an independent actuary (using the Projected Unit Credit method) at
the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which
they arise.
e) Termination benefits
Termination benefits are recognised in the Statement of Profit and Loss as and when incurred.
1.9 Research and Development
Revenue expenditure of research and development is charged off as and when incurred.
1.10 Product warranty
The estimated liability for product warranties is recorded when products are sold. These estimates are established
using historical information on the nature, frequency and average cost of warranty claims and management
estimates regarding possible future incidence based on corrective actions on product failures.
1.11 Provisions and Contingent Liabilities
Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow
of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of
the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the
present obligation at the Balance sheet date and are not discounted to its present value.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
1.12 Taxation
Tax expense for the period, comprising current tax and deferred tax, are included in the determination of the net
profit or loss for the year. Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the relevant prevailing tax laws.
Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of
deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets
can be realised. In situations where the Company has unabsorbed depreciation or carry forward losses, all deferred
tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be
realised against future taxable profits. Deferred tax assets and liabilities are measured using the tax rates and tax
laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the
Company reassesses unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets
and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income
levied by the same governing taxation laws.
50
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
51
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Minimum Alternate Tax credit is recognised as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a
convincing evidence to the effect that the Company will pay normal income tax during the specified period.
1.13 Cash and Cash Equivalents
Cash and cash equivalents includes cash in hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
1.14 Lease (as lessee)
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a
straight-line basis over the period of the lease.
Notes (contd.)
As atMarch 31, 2016
Rs.
As atMarch 31, 2015
Rs.
2 Share Capital
Authorised
2,000,000 (March 31, 2015: 2,000,000) Equity Shares of Rs.10 each 20,000,000 20,000,000
Issued, Subscribed and paid up:
951,640 (March 31, 2015: 951,640) Equity Shares of Rs.10 each, fully paid 9,516,400 9,516,400
9,516,400 9,516,400
(a) Reconciliation of number of Equity Shares
Balance at the beginning of the year
Balance at the end of the year
As at March 31, 2016 Rs. As at March 31, 2015 Rs.
Number of shares Amount Number of shares AmountRs. Rs.
951,640 9,516,400 951,640 9,516,400
951,640 9,516,400 951,640 9,516,400
(b) Rights, preferences and restrictions attached to Equity Shares
)(c Equity Shares held by holding company
869,100 shares (March 31,2015: 869,100 shares) held by Novar ED&S Limited, U.K.
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
8,691,000 8,691,000
The Company has only one class of Equity Shares having par value of Rs.10 per share. Each Shareholder is eligible for
one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders
in the ensuing Annual General Meeting except in case of interim dividend. In the event of liquidation, the Equity
Shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.
869,100 91.33% 869,100 91.33%
(d) Details of Shareholders holding more than 5% of Equity Shares as at the year end
52
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
Novar ED&S Limited, U.K.
As at March 31, 2016 Rs. As at March 31, 2015 Rs.
Number of shares % holding Number of shares % holding
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
3 Reserves and Surplus
Capital Redemption Reserve
Balance as at the beginning of the year 483,600 483,600
Balance as at the end of the year 483,600 483,600
[Capital Redemption Reserve represents amounts transferred from Statement of
Profit and Loss pursuant to the provisions of Section 77AA of the Companies Act,
1956 in respect of 48,360 Equity shares of Rs 10/- each bought back during 2003
-2004]
Surplus in the Statement of Profit and Loss
Balance as at the beginning of the year 1,015,669,601 970,949,224
Add: Profit for the year 21,202,971 44,720,377
Balance as at the end of the year 1,036,872,572 1,015,669,601
1,037,356,172 1,016,153,201
4 Long-term Provisions
Provision for Employee Benefits:
- Gratuity (Refer Note 20a) - -
- Compensated Absences 5,298,630 4,436,372
Other Provisions:
- Warranty (Refer Note 7a) 14,919,799 20,627,503
20,218,429 25,063,875
5 Trade Payables
Trade Payables
- Total outstanding dues of Micro Enterprises and 162,476 45,048,799
Small Enterprises (Note 33)
- Total outstanding dues of creditors other than Micro 238,830,699 198,282,800
Enterprises and Small Enterprises
238,993,175 243,331,599
Notes to financial statements
53
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
6 Other Current Liabilities
Other Payables:
Employee Benefits Payable 15,176,034 9,819,801
Capital Creditors 186,787 3,647,634
Provision for Discount 34,121,644 23,422,349
Advance Payments From Customers 2,211,108 901,303
Statutory dues (including Provident Fund and Tax deducted at Source) 7,387,869 16,112,956
Interest due to suppliers registered under the MSMED Act 4,668,382 3,478,950
63,751,824 57,382,993
7 Short-term Provisions
Provision for Employee Benefits:
- Gratuity ( Refer Note 20a) 3,824,478 -
- Compensated Absences 809,086 1,334,424
Other Provisions: (Refer Note 7a)
- Warranty 1,670,642 5,169,967
- Indirect Tax Matters 6,500,000 5,000,000
12,804,206 11,504,391
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
Provisions:
Balance as at the beginning of the year 25,797,470 5,000,000 13,655,360 5,000,000
Additions/Reversals (6,609,247) 1,500,000 14,878,726 -
Amounts used (2,597,782) - (2,736,616) -
Balance as at the end of the year 16,590,441 6,500,000 25,797,470 5,000,000
Classified as Non-current: 14,919,799 - 20,627,503 -
Classified as Current: 1,670,642 6,500,000 5,169,967 5,000,000
16,590,441 6,500,000 25,797,470 5,000,000
Notes:
(1) Product warranty is generally extended for a period of one year to ten years from the date of sale to the end customer. Timing of outflow is over the period of warranty.
(2) Indirect Tax Matters - Provision represents estimates made for possible liabilities relating to Indirect tax matters. The outflow with regard to said matters depends on the exhaustion of remedies available under the law and hence the Company is not able to reasonably ascertain the timing of the outflow.
(a) Disclosure under Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets"
For the year ended March 31, 2016
Rs.
For the year ended March 31, 2015
Rs.
Warranty Indirect Tax Matters
Warranty Indirect Tax Matters
Notes to financial statements
54
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
8 F
ixed
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h 3
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ril
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2015
(R
efe
r N
ote
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Dele
tio
ns
Marc
h 3
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arc
h 3
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39
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om
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ters
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To
tal
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To
tal
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rev
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s Y
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r) (
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4)
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4)
(5
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52
0,0
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20
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1,0
90
) (
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) (
5,1
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) (
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8)
Gro
ss
Blo
ck
Ne
t B
loc
kD
ep
rec
iati
on
No
tes t
o f
inan
cia
l sta
tem
en
ts
55
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
8 F
ixed
Assets
(Co
ntd
....)
(Fig
ure
s in
Rs.)
(b)
Inta
ng
ible
As
se
ts
Co
st
as a
t
Ad
dit
ion
sD
ele
tio
ns
C
ost
as
at
U
pto
F
or
the
year
O
n
Up
to
As
at
Ap
ril
1,
2015
du
rin
g t
he
year
Marc
h 3
1,
2016
Ap
ril
1,
2015
Dele
tio
ns
Marc
h 3
1, 2016
M
arc
h 3
1, 2016
Inta
ng
ible
as
sets
Com
pute
r S
oft
ware
2,5
84,8
04
-
-
2,5
84
,80
4
1,1
66
,56
3
-
-
1,1
66
,56
3
1,4
18
,24
1
(5,5
16,8
29)
(3,0
19
,30
4)
(5
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1,3
29
) (
2,5
84
,80
4)
(5
,51
6,8
29
) (
1,6
01
,06
3)
(5
,95
1,3
29
) (
1,1
66
,56
3)
(1
,41
8,2
41
)
Lease
hold
Rig
hts
-
-
-
-
-
-
-
-
-
(2,4
50,0
00)
-
(
2,4
50
,00
0)
-
(
1,7
82
,79
5)
(6
67
,20
5)
(2
,45
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) -
-
To
tal
2,5
84,8
04
-
-
2,5
84
,80
4
1,1
66
,56
3
-
-
1,1
66
,56
3
1,4
18
,24
1
To
tal (
Pre
vio
us Y
ear)
(7,9
66,8
29)
(3,0
19
,30
4)
(8
,40
1,3
29
) (
2,5
84
,80
4)
(7
,29
9,6
24
) (
2,2
68
,26
8)
(8
,40
1,3
29
) (
1,1
66
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3)
(1
,41
8,2
41
)
Gro
ss
Blo
ck
Ne
t B
loc
kA
mo
rtis
ati
on
(c)
Fig
ure
s in
bra
cket re
pre
sent pre
vious
year.
(d)
The a
bove in
cludes
prior
periods'
am
ount
of
Rs.
13,1
28,8
67/-
bein
g r
ect
ifica
tion o
f bala
nce
s w
hic
h h
ad b
ee
n in
corr
ect
ly m
igra
ted
to
pre
sen
t a
cco
un
ting
sy
stem
fro
m le
gacy
sys
tem
.
(e)
The C
om
pany
has
capita
lised N
il (M
arc
h 3
1,
2015:
Nil)
borr
ow
ing c
ost
during t
he y
ear.
No
tes t
o f
inan
cia
l sta
tem
en
ts
56
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
9 Deferred Tax Asset (net)
Deferred Tax Asset
Disallowance u/s 40(a) of the Income Tax Act,1961 6,255,990 9,392,911
Provision for Doubtful Debts 6,561,494 7,675,436
Voluntary Retirement Scheme 819,225 2,479,297
Retirement Benefits 3,194,083 873,889
Bonus 4,594,598 3,008,516
21,425,390 23,430,049
Deferred Tax Liability
Depreciation 1,478,580 6,581,136
1,478,580 6,581,136
19,946,810 16,848,913
10 Long-term Loans and Advances
Un-secured and considered good (unless otherwise stated)
Capital Advances 4,396,332 27,030,481
Security Deposits 12,274,646 12,274,646
Other loans and advances
- Sales Tax paid under protest 31,084,731 31,017,578
- Minimum Alternate Tax Credit entitlement 11,317,664 7,579,497
Advance Income Tax (Net of provision of Rs.175,252,695 (March 31, 2015 : 119,485,506 125,895,467
Rs.118,666,624))
The provision for tax is net of cumulative utilisation of Minimum Alternate Tax Credit of Rs.38,582,295 includes Rs 3,738,167 for earlier years (March 31, 2015 : Rs.31,002,798)
178,558,879 203,797,669
11 Inventories
Raw Materials and Components 114,496,840 89,100,389
Raw Material in transit 5,600,241 13,974,286
Packing Materials 3,478,314 6,103,377
Work-in-progress 13,040,262 16,569,309
Finished Goods 45,612,640 51,482,847
Stock-in-trade 44,240,601 41,852,632
Stock-in-trade In transit 3,017,655 6,130,508
229,486,553 225,213,348
Notes to financial statements
57
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
(a) Details of inventory
(i) Details of Work-in-progress:
Wiring Devices 9,549,059 13,134,793
Cable Management Systems 13,056 -
Lighting Management Systems 76,803 111,973
Bells and Chimes 3,401,344 3,322,543
13,040,262 16,569,309
(ii) Details of Finished goods:
Wiring Devices 26,866,062 38,873,136
Cable Management Systems - 22,958
Lighting Management Systems 1,287 269,329
Bells and Chimes 341,017 79,598
Circuit Protection 18,404,274 12,237,826
45,612,640 51,482,847
(iii) Details of Stock-in-trade:
Wiring Devices 31,211,880 26,969,236
Cable Management Systems 9,443,578 13,318,561
Lighting Management Systems 3,775,925 2,995,225
Circuit Protection 2,826,873 4,700,118
47,258,256 47,983,140
12 Trade Receivables
Unsecured and considered good
Outstanding for a period exceeding 6 months
from the date they are due for payment 8,261,657 10,135,919
Others 432,063,179 367,595,117
Unsecured considered doubtful
Outstanding for a period exceeding 6 months from the date they are due for payment 19,845,428 23,214,579
Others 1,448,390 1,145,779
Less: Provision for doubtful debts (21,293,818) (24,360,358)
440,324,836 377,731,036
Notes to financial statements
Notes (contd.)
58
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
13 Cash and Bank Balances
Cash and Cash Equivalents
Balances with Banks:
- In Current Accounts 27,595,317 21,034,785
- In Exchange Earners Foreign Currency Account 26,535,092 24,561,436
- Deposits with original maturity less than 3 months 100,000,000 300,000,000
Other Bank Balances
- Deposits with original maturity More than 3 months 186,000,000 -
340,130,409 345,596,221
14 Short-term Loans and Advances
Un-secured and considered good (unless otherwise stated)
Other Loans and Advances:
Advance to Suppliers 6,275,307 7,924,507
Security Deposit - 303,030
Employee Advances 2,587,280 1,184,858
Balance with Government Authorities 9,748,965 7,785,438
18,611,552 17,197,833
15 Other current assets
Un-secured and considered good (unless otherwise stated)
Interest Receivable on Deposits 1,613,288 3,574,517
Other Receivables 1,267,557 -
Gratuity - Surplus Fund Balance (Note 20a) - 3,127,693
2,880,845 6,702,210
As at
March 31, 2016
Rs.
As at
March 31, 2015
Rs.
Notes (contd.)
Notes to financial statements
16 Revenue from Operations
Sale of Products (Net of Rebates and Discount) 1,457,130,894 1,394,487,522
Sale of services (Testing of Products) 6,181,309 4,553,110
Total sale of products and services 1,463,312,203 1,399,040,632
Other operating revenueScrap sales 610,797 -
1,463,923,000 1,399,040,632
Less: Excise Duty 4,510,902 3,457,147
1,459,412,098 1,395,583,485
(a) Details of Sales of Products
(i) Details of Finished Goods:
Wiring Devices 624,520,924 572,922,330
Cable Management Systems 424,385 119,035
Lighting Management Systems 13,662,269 18,944,639
Bells and Chimes 299,902,198 246,594,107
Circuit Protection 83,529,798 57,680,055
Others Security 11,221,491 -
(ii) Details of Stock-in-trade:
Wiring Devices 223,707,445 249,526,957
Cable Management Systems 131,855,170 185,217,750
Lighting Management Systems 24,351,222 21,567,994
Circuit Protection 43,955,992 41,914,655
423,869,829 498,227,356
Grand Total 1,457,130,894 1,394,487,522
17 Other Income
Interest Income:
- On Bank Deposits 19,862,977 29,701,346
Gain on Foreign Currency Transactions/Translations 3,075,568 -
Provision/Liabilities written back to the extent no longer required 1,908,736 20,730,963
24,847,281 50,432,309
1,033,261,065 896,260,166
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
59
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
Notes to financial statements
18 Cost of Materials ConsumedRaw Materials Consumed
Inventory at the beginning of the year 103,074,675 104,192,924
Add: Purchases 486,639,907 445,290,428
589,714,582 549,483,352
Less: Inventory at the end of the year 120,097,081 103,074,675
Cost of Raw Materials Consumed 469,617,501 446,408,677
Packing Materials Consumed
Inventory at the beginning of the year 6,103,377 3,944,339
Add: Purchases 17,634,937 20,080,690
23,738,314 24,025,029
Less: Inventory at the end of the year 3,478,314 6,103,377
Cost of Packing Materials Consumed 20,260,000 17,921,652
489,877,501 464,330,329
19 Changes in Inventories of Finished Goods, Work-in-Progress
and Stock-in-Trade
Stock at the end of the year :
Work-in-progress 13,040,262 16,569,309
Finished Goods 45,612,640 51,482,847
Stock-in-trade 47,258,256 47,983,140
Total (A) 105,911,158 116,035,296
Stock at the beginning of the year :
Work-in-progress 16,569,309 13,941,879
Finished Goods 51,482,847 68,923,574
Stock-in-trade 47,983,140 77,734,687
Total (B) 116,035,296 160,600,140
Decrease/ (Increase) in stocks (B-A) 10,124,138 44,564,844
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
60
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
Notes to financial statements
61
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
20 Employee Benefits Expenses
Salaries, wages and bonus 240,577,809 225,738,174
Contribution to Provident and Other Funds 10,880,729 11,693,411
Gratuity 8,928,618 1,127,769
Staff Welfare 23,133,879 14,477,816
283,521,035 253,037,170
20 (a) Disclosure in respect of AS 15 (Revised) “Employee Benefits”
(i) Defined Contribution Plans
Amount recognised in Statement of Profit and Loss
(i) Provident Fund paid to authorities 10,824,920 9,720,683
(ii) Superannuation fund 55,809 10,275,366
10,880,729 19,996,048
Provident Fund: Provident fund for all eligible employees are remitted to the Regional Provident Fund Commissioner
towards Employee's Provident Fund and Employee's Family Pension Fund on monthly basis based on the statutory
provisions as per the Employee Provident Fund Scheme and are charged to Statement of Profit and Loss.The Company
has no further obligation in this regard.
Superannuation Fund: The Company contributes a sum equivalent to 10% of eligible employees salary for certain
employees to a Superannuation Fund administered and managed by Life Insurance Corporation of India (LIC).The
Company has no liability for future Superannuation Fund benefits other than its annual contribution and recognises such
contributions as an expense in the year incurred.
(ii) Defined Benefit Plan
Gratuity: The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life
insurance Corporation of India (LIC). Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for
each completed year of service in line with the Payment of Gratuity Act,1972. The amount is payable at the time of
separation from the Company or retirement, whichever is earlier.
Notes to financial statements
62
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
a) Defined benefit plan - Gratuity
Present value of obligation at the beginning of the year 29,712,372 28,541,265
Interest cost 1,937,866 2,362,513
Current service cost 3,253,879 3,133,950
Benefits paid (9,735,883) (495,397)
Actuarial (gain) / loss on obligation 7,439,842 (3,829,959)
Present value of obligation at the end of the year 32,608,076 29,712,372
Fair value of plan assets at the beginning of the year 32,840,065 27,955,306
Expected return on plan assets 2,508,675 2,636,228
Contributions 3,083,391 4,841,421
Benefits paid (9,735,883) (495,397)
Actuarial gain / (loss) on plan assets 87,350 (2,097,493)
Fair value of plan assets at the end of the year 28,783,598 32,840,065
Actual return on plan assets 2,596,025 538,735
Amounts recognized in the balance sheet
Present value of obligation as at the end of the year 32,608,076 29,712,372
Fair value of plan assets at the end of the year 28,783,598 32,840,065
Asset/(Liability) recognized in the balance sheet (3,824,478) 3,127,693
Classified as
Short-term Provision (3,824,478) -
Other Current Assets - 3,127,693
(3,824,478) 3,127,693
Amounts recognized in the statement of profit and loss
Current service cost 3,253,879 3,133,950
Interest cost 1,937,866 2,362,513
Expected return on plan assets (2,508,675) (2,636,228)
Net actuarial (gain) / loss recognized in the year 7,352,492 (1,732,466)
Expenses recognized in the statement of profit and loss 10,035,562 1,127,769
Notes to financial statements
63
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Major Category of Plan Assets as a % of total Plan Assets
Funds Managed by insurer 100% 100%
Expected contribution to be paid for next year 1,624,727 6,235,651
Principal actuarial assumptions
Discount rate 7.80% 7.80%
Salary escalation 9.00% 7.00%
Attrition rate 21-30 years - 20% 21-30 years - 20%
31-45 years - 12% 31-45 years - 12%
46 - 58 years - 8% 46 - 58 years - 8%
Expected return on plan assets 8.50% 8.75%
The estimate of future salary increases, considered in actuarial valuation, takes into account, inflation, seniority,
promotions and other relevant factors, such as demand and supply in the employment market. The expected rate of return
on plan assets is determined based on the assessment made at the beginning of the year on the return expected on its
existing portfolio, along with the estimated increment to the plan assets and expected yield on the respective assets in the
portfolio during the year.
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Notes (contd.)
Amounts recognised in current year and previous four years
Present value of Defined Benefit obligation 32,608,076 29,712,372 28,541,265 24,331,804 18,661,461
Fair value of Plan Assets 28,783,598 32,840,065 27,955,306 22,180,620 17,340,411
Surplus / (Deficit) (3,824,478) 3,127,693 (585,959) (2,151,184) (1,321,050)
Experience adjustments in plan liabilities - 4,767,677 7,502,597 2,206,149 (2,198,802) - gain/ (loss)
Experience adjustments in plan assets - (161,134) (2,097,493) 178,878 (118,891) - gain/ (loss)
b) Other long term benefit – Compensated absences as at year end amounts to Rs. 6,107,716 (March 31, 2015 Rs.5,770,796)
Notes to financial statements
March 31, 2016
March 31, 2015
March 31, 2014
March 31, 2013
March 31, 2012
64
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Notes (contd.)
21 Finance Costs
Interest expense 2,842,467 1,987,546
2,842,467 1,987,546
22 Other Expenses
Stores and Spares Consumed 5,456,968 8,045,888
Power and Fuel 14,249,727 14,511,640
Rent 30,218,465 29,262,391
Rates and Taxes 1,545,422 5,771,648
Professional Charges 7,352,264 12,504,674
Insurance 1,323,529 1,238,572
Repairs and Maintenance
Buildings 151,666 204,614
Machinery 32,684,743 31,202,897
Others - 3,292,240
Auditors' Remuneration:
- As Auditor:
- For Statutory Audit 1,935,570 1,294,500
- For Other Audit Services:
- For Tax Audit 200,000 200,000
- Reimbursement of Expenses * 227,305 26,494
Packing, Freight and Forwarding 54,726,966 55,680,393
Advertisement and Sales Promotion 31,048,393 15,485,015
Travelling and Conveyance 34,987,351 33,518,462
Cash Discount 6,770,305 5,223,607
Communication 5,193,534 6,271,032
Provision for Warranty (96,160) 14,878,726
Gain /(Loss) on sale of Fixed Assets (net) - 357,317
Loss on Foreign Currency Transactions/Translations - 1,797,170
Bad debts 4,194,484 695,948
Provision for Doubtful Debts (net) (3,369,151) 1,715,481
Provision for Indirect Tax Matters 1,500,000 -
Head Office Charges 87,561,620 66,192,358
Notes to financial statements
65
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Bank Charges and Commission 1,063,968 1,153,683
Labour Charges 8,492,897 5,848,749
Expenditure towards Corporate Social Responsibility (CSR) Activities (Note 1) 1,782,000 2,281,000
Miscellaneous Expenses 27,224,498 25,585,300
356,426,364 344,239,798
Note 1 Expenditure towards Corporate Social Responsibility (CSR) Activities:
a) Gross amount required to be spend by the company during the year 1,782,000 2,281,000
b) CSR expenses during the current year comprises of :
(i) Construction/acquisition of any asset - -
(ii) on purpose other than (i) above 1,782,000 2,281,000
(* Refers to payments made to erstwhile auditors)
23 Disclosure in respect of premises taken under operating lease
Rent Expenditure (included in Note 22) represent lease payments relating to operating leases for premises. These lease arrangements are generally for a period between 11 months to 10 years, which include both cancellable and non-cancellable lease. Most of the lease are renewable for further period on mutually agreeable terms and also include escalation clauses.
- Non-cancellable:
Due not later than one year 2,395,800 7,842,884
Due later than one year but not later than five years - 2,561,667
Dues later than five years - -
Lease charges recognised in the statement of profit and loss 6,969,600 7,341,602
for the year
- Cancellable:
Other operating lease charges recognised in the statement of 23,248,865 21,920,789
profit and loss for the year
Notes to financial statements
Notes (contd.)
22 Other Expenses (contd.)
66
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
Notes to financial statements
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
24 Contingent Liabilities and commitments
Contingent Liabilities:
- Claims against the Company not acknowledged as debt
(a) Demand from Income Tax Department under appeal 69,216,655 78,950,459
(b) Demand from Sales Tax Department under appeal 745,498,929 56,190,481
(c) Demand from Central Excise Department under appeal - 1,251,678
(d) Legal Case from Labour Court- Chennai 300,000 -
815,015,584 136,392,618
Note:
Future cash flows in respect of above, if any, is determinable only on receipt of
judgment/ decision pending with relevant authorities.
Commitments :
Estimated amount of contracts remaining to be executed on Capital Account 8,479,617 11,058,514
and not provided for, net of advance payments
Bank guarantees outstanding 8,900,000 8,900,000
25 Value of Imports on C.I.F. Basis
Capital Goods - 11,908,639
Raw Materials and Components 184,985,477 132,649,951
Stock-in-trade 43,575,235 65,581,620
228,560,712 210,140,210
26 Expenditure in Foreign Currency
Travelling 1,029,407 1,064,182
Data Communication Charges 1,030,154 1,408,439
Staff Training 703,175 18,384
Head Office Charges 55,177,625 36,777,896
57,940,361 39,268,901
27 Earnings in Foreign Currency
FOB value of Exports 360,215,047 287,544,090 Testing of products 6,181,309 4,553,110
366,396,356 292,097,200
67
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
28 Research and Development Cost
Research and Development expenditure debited to Statement of 16,451,105 21,808,088
Profit and Loss
29 Details of Raw Materials/ Packing Material Consumed
Polycarbonate (Kgs) 26,438,357 26,569,034
Silver (Kgs) 1,092,866 2,859,917
Electronic Component (Nos) 37,004 152,657
High Impact Polystrene (Kgs) 6,734,201 6,646,810
Poly Methyl Methacrylate (Kgs) 503,222 361,519
Packing Material 20,260,000 20,080,690
Others (individually less than 10% of the total consumption) 434,811,851 407,659,702
489,877,501 464,330,329
30 Consumption of Imported and Indigenous raw materials and components and the percentage of each to total consumption
Imported 221,131,087 45.14 85,571,705 18.43
Indigenous 268,746,414 54.86 378,758,624 81.57
489,877,501 100.00 464,330,329 100.00
31 Consumption of Imported and Indigenous stores and spares and the percentage of each to total consumption
Imported 1,149,338 21.06 - -
Indigenous 4,307,630 78.94 8,045,888 100.00
5,456,968 100.00 8,045,888 100.00
For the year ended March 31, 2016
Rs.
For the year ended March 31, 2015
Rs.
Value Rs.
% ValueRs.
%
For the year ended March 31, 2016
Rs.
For the year ended March 31, 2015
Rs.
Value Rs.
% ValueRs.
%
Notes (contd.)
Notes to financial statements
68
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Notes (contd.)
Notes to financial statements
32 Purchases of Stock-in-Trade
Wiring Devices 120,038,952 94,371,922
Cable Management Systems 67,958,946 98,742,015
Lighting Management Systems 12,030,370 13,014,724
Circuit Protection 39,813,608 32,532,496
239,841,876 238,661,157
33 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED’)
a Principal amount due to suppliers registered under the MSMED 162,476 45,048,799
Act and remaining unpaid as at year end
b Interest due to suppliers registered under the MSMED Act 4,668,382 3,478,950
and remaining unpaid as at year end
(included under Other Current Liabilities)
c Principal amounts paid to suppliers registered under the 68,827,434 146,966,440
MSMED Act, beyond the appointed day
during the year
d Interest paid, other than under Section 16 of MSMED Act, - -
to suppliers registered under the MSMED Act, beyond
the appointed day during the year
e Interest paid, under Section 16 of MSMED Act, - -
to suppliers registered under the MSMED Act, beyond
the appointed day during the year
f Interest due and payable towards suppliers registered 2,842,467 1,825,915
under MSMED Act, for payments already made
g Further interest remaining due and payable for 1,825,915 1,491,404
earlier years
69
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
34 Segment Reporting
The Company has identified business segment as its primary segment. In accordance with Accounting Standard 17-Segment
Reporting, the Company has determined its business segment as Manufacture and Trading in Electrical and Electronic
devices. Since, the entire Company's business is from Manufacture and Trading in Electrical and Electronic devices, there are
no other primary reportable segments. Thus, the segment revenue, segment results, total carrying value of segment assets,
total carrying amount of segment liabilities, total cost incurred to acquire segment assets, total amount of charge of
depreciation and amortisation during the year are all as reflected in the Financial Statement as at and for the year ended
March 31, 2016.
Geographic segment has been considered as the secondary segment.
Notes to financial statements
External Sales 1,093,015,743 305,872,726 60,523,629 1,459,412,098
(1,103,486,285) (237,201,784) (54,895,416) (1,395,583,485)
Segment Assets (excluding Income Tax,
MAT Credit Entitlement and Deferred Tax) 1,107,630,143 111,101,637 13,158,446 1,231,890,226
(1,120,944,917) (90,410,947) (8,852,215) (1,220,208,079)
Capital Expenditure 16,859,623 - - 16,859,623
(41,224,079) (-) (-) (41,224,079)
Secondary Segment information - By Geographical Segments
Description India Outside India Total
Europe Others
All operating facilities are located in India.
Figures in bracket represent previous year’s figures
Notes (contd.)
Rs.
70
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes (contd.)
Notes to financial statements
35 Related Party Disclosures
Name of related parties and description of relationship:
I Entities exercising control over the Company
Ultimate Holding Company Honeywell International Inc.
Holding Company Novar ED&S Limited, UK
II Entities under common control - where transaction have taken place during the year and /or having
year end balance
Honeywell Automation India Limited
Honeywell China Limited
Honeywell International India Private Limited
Honeywell Lonon Electrical Systems Technology (Guangdong) Co., Ltd.
Honeywell ME FZE
Honeywell Pte Limited
Honeywell Security (Hong Kong) Limited
Honeywell Technology Solutions Lab Private Limited
Salisbury Electrical Safety LLC
MK Cable Management (Saudi Arabia) Limited
MK Electric (China) Limited
MK Electric (Malaysia) SDN BHD
MK Electric (Singapore) Pte Limited
Honeywell Protective Clothing
Honeywell Australia Limited
Honeywell New Zealand Limited
Honeywell Co., Ltd.
Ademco Asia Pacific Limited
Honeywell Technologies S.a.r.l.
III Key management personnel
Mr. Sadanand Teje (Managing Director) (Upto August 28, 2015)
Mr Rohit Bansal ( Whole-time Director) (From Apr 30,2015)
Mr. Anil Kini (Whole-time Director) (From September 6, 2014 to August 28, 2015)
71
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes to financial statements
a) Purchase of Capital Goods
Honeywell Automation India Limited 1,225,614 608,160
b) Purchase of Other Goods
Honeywell International India Private Limited - 172,337
Honeywell Security (Hong Kong) Limited 1,926,356 3,201,602
MK Cable Management (Saudi Arabia) Limited 11,405,822 3,656,253
MK Electric (Malaysia) Sdn Bhd 3,940,878 3,521,688
Ademco Asia Pacific Limited - 1,440,720
Salisbury Electrical Safety LLC 558,973 -
Novar ED&S Limited, UK 24,431,546 20,168,119
42,263,575 32,160,720
c) Sale of Goods and Services
Honeywell International India Private Limited 42,109,029 19,953,725
Honeywell ME FZE 8,608,941 3,913,338
Honeywell Technology Solutions Lab Private Limited 777,306 367,750
MK Electric (China) Limited 9,209,610 2,128,685
MK Electric (Malaysia) Sdn Bhd 21,406,754 10,044,125
MK Electric (Singapore) Pte Limited 2,044,322 2,240,186
Novar ED&S Limited, UK 305,872,726 237,189,753
Honeywell Automation India Limited 861,470 706,821
Honeywell International Inc 10,656,251 11,534,659
Honeywell Protective Clothing 5,446,337 1,628,780
Honeywell Australia Limited 5,793,580 4,086,497
Honeywell Technologies S.a.r.l. - 12,032
Honeywell Pte Limited 636,111 -
Honeywell Co., Ltd. 44,570 -
Honeywell New Zealand Limited 2,123,491 1,305,281
Honeywell Security (Hong Kong) Limited - 19,642,645
415,590,498 314,754,277
IV Related party transactions
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Notes (contd.)
72
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Notes to financial statements
Notes (contd.)
d) Head Office Charges and others
Honeywell International Inc 38,490,656 21,869,282
Honeywell Pte Limited 3,196,496 2,594,775
Honeywell Australia Limited - 255,338
Honeywell China Limited 10,952,294 8,352,708
Honeywell Security (Hong Kong) Limited - 3,098,622
Honeywell Automation India Limited 12,193,131 15,925,532
Novar ED&S Limited, UK - 469,736
Salisbury Electrical Safety LLC 2,538,180 -
Honeywell Lonon Electrical Systems Technology (Guangdong) Co., Ltd. - 137,434
Honeywell Technology Solutions Lab Private Limited 3,695,539 4,541,964
Honeywell International India Private Limited 14,410,652 8,946,967
85,476,948 66,192,359
e) Rent paid
Honeywell Automation India Limited 15,199,506 11,504,509
Honeywell International India Private Limited 6,805,546 7,051,714
22,005,052 18,556,223
f) Staff Training
Honeywell International India Private Limited 1,483,936 20,620
Honeywell International Inc 703,175 18,384
2,187,111 39,004
g) Data Communication Charges
Honeywell Automation India Limited 1,544,723 1,140,029
Honeywell Pte Limited 1,030,154 1,408,439
Honeywell International India Private Limited 5,251,585 400,000
7,826,462 2,948,468
h) Remuneration
Mr. Sadanand Teje 4,219,716 19,169,915
Mr.Rohit Bansal 11,090,472 -
Mr. Anil Kini 2,450,389 3,779,993
Mr. BRB Puthran - 2,921,465
17,760,577 25,871,372
IV Related party transactions (Contd.....)
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
73
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
a) Receivable Balances
Honeywell International India Private Limited 2,907,276 4,475,904
Honeywell ME FZE 532,448 800,003
MK Electric (China) Limited 1,777,446 459,857
MK Electric (Singapore) Pte Limited 1,719,254 868,045
Novar ED&S Limited, UK 112,516,345 90,324,856
Honeywell Protective Clothing 1,902,372 988,336
Honeywell Newzealand Limited 704,047 153,728
Honeywell Australia Limited 4,359,313 744,026
Honeywell Technology Solutions Lab Private Limited 27,849 -
Honeywell International Inc 1,300,691 3,402,575
MK Electric (Malaysia) Sdn Bhd 2,863,549 2,397,548
Honeywell Automation India Limited 869,734 869,734
131,480,324 105,484,612
b) Payable Balances
Honeywell Lonon Electrical Systems Technology (Guangdong) Co., Ltd. - 187,305
Honeywell Automation India Limited 5,086,506 992,038
Ademco Asia Pacific Limited - 607,063
Honeywell International India Private Limited 1,303,495 746,016
Honeywell Pte Limited 313,687 282,092
Honeywell Security (Hong Kong) Limited - 19,810
Salisbury Electrical Safety LLC 1,623,717 -
Honeywell Technology Solutions Lab Private Limited - 12,078
MK Electric (Malaysia) Sdn Bhd 524,294 1,139,861
Novar ED&S Limited, UK 5,078,619 4,169,096
13,930,318 8,155,359
V Balances as at year end
Rs.
As at
March 31, 2015
Rs.
Notes to financial statements
Notes (contd.)
As atMarch 31, 2016
74
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
36 Earnings Per Share
Profit after tax (Rs) - (A) 21,202,971 44,720,377
Weighted average number of equity shares outstanding – (B) 951,640 951,640
Earnings Per Share - Basic and Diluted (in Rs) – (A/B) 22.28 46.99
Nominal value per equity share 10 10
37 Derivative Instruments and unhedged foreign currency exposures
The Company has not taken any derivative contracts to hedge the foreign currency exposures.
The Company has the following
unhedged foreign currency exposure:
For the year ended
March 31, 2016
Rs.
For the year ended
March 31, 2015
Rs.
Notes (contd.)
Notes to financial statements
USD 1,849,286 122,737,109 1,574,606 98,176,672
GBP 26,855 2,570,370 22,336 2,076,763
Trade Payables
USD 341,460 25,957,094 537,171 33,492,627
GBP 54,969 5,254,240 45,648 4,244,183
EURO 850 64,023 11,400 780,944
AUD 2,000 95,761 - -
HKD 529,209 4,673,113 399,293 3,206,079
Trade Receivables
As atMarch 31, 2016
As atMarch 31, 2015
Foreign Currency Rs. Foreign Currency Rs.
2011-2012 11,707,03 57,507,035
2012-2013 8,585,969 4,385,969
2013-2014 15,112,328 6,712,328
2014-2015 23,448,086 11,039,914
2015-2016 16,895,464 6,162,457
Total 75,748,882 35,807,703
Financial Managerial Amount of ExcessYear Remuneration Paid Remuneration
38 Details of managerial remuneration paid by the Company are as below:
75
Honeywell Electrical Devices and Systems India Ltd.Annual Report 2015-2016
Companies Act, 2013 read with Schedule XIII of the Companies Act, 1956 / Schedule V of the Companies Act, 2013 and
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
The shareholders have approved the payments up to March 31, 2015 in its general meetings and the Company is in the
process of obtaining the approval from shareholders for the payments made during the financial year 2015-16.
In respect of all of the above years, the Company had applied for the required approvals with the Central Government. The
Company has got the requisite approval for the managerial remuneration amounting to Rs.5,848,782 out of total
managerial remuneration of Rs.15,112,328 paid during the financial year 2013-14.
In respect of the other amounts till financial year 2014-15, the Company is awaiting the necessary approvals and responses
to the clarifications submitted by it from the Central Government. In respect of the financial year 2015-16, out of the total
managerial remuneration of Rs.16,895,464 the company has submitted aforesaid application of Rs. 9,739,440. In respect
of balance amount, the company is in the process of submitting the required application.
39 The independent review for assessing compliance with Transfer Pricing Rules issued by the Central Board of Direct Taxes
for the year ended March 31, 2016 is yet to commence. However, on the basis of the self-assessment of the operations
during the year and the independent review carried out in the previous year, Management does not expect any significant
deviation from the requirements of the aforesaid Transfer Pricing Rules.
40 Previous period's figures have been regrouped, wherever necessary, to conform with current year's presentation. The
previous period figures have not been audited by the present auditors.
The above payments are governed by the requirements of the Section 198 of the Companies Act, 1956 / Section 197 of the
Notes to financial statements
For and on behalf of the Board
Rohit Bansal Neelu Khatri
Director Director
Place: Pune
Date: July 29, 2016
Notes (contd.)
"This
page has b
een inte
ntionally
left
blank”
ATTENDANCE SLIP
(To be handed over at the entrance of the meeting hall)
Annual General Meeting on 23 September 2016
Full name of the members attending
(In block capitals)
Ledger Folio No. No. of shares held:
Name of Proxy
(To be filled in, if the proxy attends instead of the member)
I hereby record my presence at the Annual General Meeting of Honeywell Electrical Devices And Systems India rd th Limited on on Friday, September 23, 2016, at the registered office of the Company at 3 & 4 Floor, Dowlath Towers,
Taylors Road, Kilpauk, Chennai – 600010 at 11 AM (IST)
(Member's /Proxy's Signature)
Note:
1) Members are requested to bring their copies of the Annual Report to the meeting, since further copies will not
be available.
2) The Proxy, to be effective should be deposited at the Registered Office of the Company not less than FORTY
EIGHT HOURS before the commencement of the meeting.
3) A Proxy need not be a member of the Company.
4) In the case of joint holders, the vote of the senior who tenders a vote, whether in person or by Proxy, shall be
accepted to the exclusion of the vote of the other joint holders. Seniority shall be determined by the order in
which the names stand in the Register of Members.
5) The submission by a member of this form of proxy will not preclude such member from attending in person and
voting at the meeting.
Road Map of Honeywell Electrical Devices and Systems India Limited
FORM NO. MGT-11
PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and
Administration) Rules, 2014]
Name of the Member(s)
Registered Address
E-mail Id Folio No
Name E-mail Id
Address
Signature
Name E-mail Id
Address
Signature
Name E-mail Id
Address
Signature
I/We, being the member(s) of shares of the above named company. Hereby appoint
as my/ our proxy to attend and vote( on a poll) for me/us and on my/our behalf at the Annual General Meeting of the rd thcompany, to be held on Friday, September 16, 2016, at the registered office of the Company at 3 & 4 Floor, Dowlath
Towers, Taylors Road, Kilpauk, Chennai – 600010 at 11 AM (IST) and at any adjournment thereof in respect of such
resolutions as are indicated below:
or failing him
or failing him
Sr. Resolution(S) Vote
No. For Against
1. Consideration and adoption of audited financial statements of the Company for the financial
year ended March 31, 2016, the Reports of the Directors and Auditors thereon
2. Ratification of appointment of Statutory Auditors
3. Appointment of Director in place of Mr. Rohit Bansal who retires by rotation and being
eligible, has offered himself for reappointment
4. Ratification of remuneration of Cost Auditors
5. Waiver of excess remuneration paid to Mr. Sadanand Vitthal Teje for the financial year 2015-16
6. Waiver of recovery of excess remuneration paid to Mr. Anil Ramachandra Kini for the financial
year 2015-16
7. Appointment of Mr. Virender Shankar as Independent Director for the period of five years
Signed this day of September 2016
Signature of Shareholder Signature of Proxy holder
Signature of the shareholder
across Revenue Stamp
Note:
1) This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company not less than 48 hours before the commencement of the Meeting.
2) The proxy need not be a member of the company
Affix
Revenue
Stamps
The finest architects, interior designers and engineers always recommend MK.Ask them or contact MK Team at [email protected]
COCHINnd41/2553, 2-A 2 Floor, Metro Palace, Opp. Town Railway Station, Cochin – 682 018
Tel: +91-484-2394379 Tel/Fax: +91-484-2394732 I Email: [email protected]
BANGALORErd3 Floor, Chambers@Mantri, Municipal No.10, Richmond Road, Bangalore – 560 025
Tel: +91-80-67124120/21/22/23 I Email: [email protected]
Honeywell Electrical Devices and Systems India Limited.rd th3 & 4 Floor, Dowlath Towers, Taylors Road, Kilpauk, Chennai - 600 010
Tel: +91-44-66326789, 66085600 Fax: +91-44-26161235Email: [email protected] Website: www.mkelectricindia.com
CHENNAIrd th3 & 4 Floor, Dowlath Towers, Taylors Road, Kilpauk, Chennai - 600 010
Tel: +91-44-66326789, 66085600 Fax: +91-44-26161235 I Email: [email protected]
HYDERABADrd8-2-418, Krishnama House, 3 Floor, Road No-7, Banjara Hills, Hyderabad – 500 034
Tel: +91-40-66030900 Fax: +91-40-66030971 I Email: [email protected]
KOLKATAthSrijan Techpark, 8 Floor, DN-52, Salt Lake, Sector-V, Kolkata – 700 091
Tel: +91-33-66283693/94, Fax: +91-33-66283701 I Email: [email protected]
MUMBAIndEco-elite Building, 2 Floor, Marol Maroshi Road, Marol, Next to Zakaria Industrial Estate,
Andheri (E), Mumbai – 400 059 I Tel: +91-22-67650680/81, Fax: +91-22-67650682Email: [email protected]
Call our Customer Care Number - 1800 103 3848 on weekdays from 9 A.M. to 6 P.M.