Honeywell Electrical Devices and Systems India Unlisted Shares

Annual Report Summary

Honeywell Honeywell Electrical Devices and Systems India Limited’s annual report for 2020-2021 covers the company's financial performance, corporate development, people and industrial relations, and other key aspects of its operations.

Notice of Annual General Meeting The 36th Annual General Meeting was scheduled for December 15, 2021, to consider and adopt the audited financial statements for the year ended March 31, 2021. Key items for consideration include the reappointment of Mr. Vimal Chawla, the appointment of Mr. Satish Kumar Agarwal as Director, and the re-appointment of Mr. Virender Shankar as an Independent Director. Ratification of the remuneration of Cost Auditors, M/s. C. S. Adawadkar & Co, was also on the agenda.

Directors’ Report The company achieved a turnover of Rs. 8,548 Lakhs, but reported a Loss after Tax of Rs. 926 Lakhs. No dividend was recommended due to the loss incurred. The market conditions were challenging due to COVID-19, although there were signs of recovery in the residential segment in the second half of the year. The company launched two significant products, EVO and Horizon, and saw an increase in NPI vitality to 33%. The focus for the upcoming year includes scaling up new products, consolidating market share, and strengthening the Circuit Protection portfolio and providing a digital solution for distributors. Hopetown facility received north region Quality Circle Silver Award organized by QCF of India in 2020 and has 100% employee vaccination.

Management Structure & Board Committees: Mr. Girish Pargaonkar resigned from the Board on January 20, 2021. Mr. Satish Kumar Agarwal was co-opted as an Additional Director w.e.f. February 04, 2021. The board recommends the reappointment of Mr. Vimal Chawla and the appointment of Mr. Satish Kumar Agarwal as Director. The Board also seeks shareholder approval for the re-appointment of Mr. Virender Shankar as an Independent Director. The company has an Audit Committee, a Nomination and Remuneration Committee, and a Corporate Social Responsibility Committee.

Other Key Points from the Directors’ Report: The company has a Vigil Mechanism/Whistle Blower Policy. The company has formulated criteria for determining Director qualifications and remuneration. A Risk Management Policy is implemented to identify and mitigate business risks. The company has a proper and adequate system of internal controls, tested by Internal Auditors. There were no materially significant related party transactions. The Directors confirmed that the annual financial statements have been prepared on a going concern basis. M/s Deloitte Haskins & Sells LLP are the statutory auditors. A cost audit is applicable for the financial year 2020-21. The company has a zero tolerance policy for sexual harassment. The total foreign exchange used was Rs. 971 Lakhs and the total foreign exchange earned were Rs. 316 Lakhs.

Independent Auditor's Report: Deloitte Haskins & Sells LLP issued an unmodified opinion on the financial statements, stating that they present a true and fair view of the company's state of affairs as of March 31, 2021, in accordance with Indian Accounting Standards (Ind AS) and the Companies Act, 2013. The report also includes an Annexure A with the firm's report of internal financial controls over financial reporting which included the opinion that, in all material respects, the company had adequate internal financial controls in place.

Financial Statements: The balance sheet, statement of profit and loss, cash flow statement, and statement of changes in equity are included, providing a detailed breakdown of the company's financial position and performance. The company's authorized share capital is Rs. 20,000,000, and the paid-up share capital is Rs. 95,16,400.

Significant Accounting Policies and Notes to the Financial Statements: The annual report provides detailed notes on significant accounting policies, including revenue recognition, foreign currency transactions, employee benefits, taxation, leases, and financial instruments. It also provides specific information on items such as inventories, trade receivables, provisions, and contingent liabilities. Disclosure is provided in respect to related parties.