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Honeywell Automation India Ltd.

BSE: 517174 Sector: Engineering
NSE: HONAUT ISIN Code: INE671A01010
BSE LIVE 15:40 | 19 Sep 17104.05 751.70
(4.60%)
OPEN

16499.90

HIGH

17837.00

LOW

16499.00

NSE 15:42 | 19 Sep 17004.70 656.70
(4.02%)
OPEN

16405.00

HIGH

17789.00

LOW

16100.20

OPEN 16499.90
PREVIOUS CLOSE 16352.35
VOLUME 818
52-Week high 17837.00
52-Week low 8021.00
P/E 81.02
Mkt Cap.(Rs cr) 15,120
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16499.90
CLOSE 16352.35
VOLUME 818
52-Week high 17837.00
52-Week low 8021.00
P/E 81.02
Mkt Cap.(Rs cr) 15,120
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Honeywell Automation India Ltd. (HONAUT) - Auditors Report

Company auditors report

To

The Members of

Honeywell Automation India Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Honeywell AutomationIndia Limited ("the Company") which comprise the Balance Sheet as at 31stMarch 2017 and the Statement of Profit and Loss (including Other Comprehensive Income)the Cash Flow Statement and the Statement of Changes in Equity for the year then endedand a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit.

In conducting our audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditors consider internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit total comprehensive income its cashflows and the changes in equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit we report to theextent applicable that:

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2017 from being appointed as a director in termsof Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A".Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements - Refer Note 35 to the Ind AS financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts - Refer Note 38 to the Ind AS financial statements;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company

iv. The Company does not transact in cash and accordingly the Company did not have anyholdings or dealings in Specified Bank Notes during the period from November 8 2016 toDecember 30 2016. Refer Note 42 to the Ind AS financial statements

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 theOrder.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
(Membership No. 208238)
Gurugram 25th May 2017

Annexure 'A' to Independent Auditors' Report

(Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of HoneywellAutomation India Limited ("the Company") as of 31st March 2017 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to respective Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors' judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the Company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31stMarch 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
(Membership No. 208238)
Gurugram 25thMay 2017

Annexure 'B' to Independent Auditors' Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report of even date)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of five years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the Management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the copy of the registered sale deed title searchreport and tax paid receipts provided to us we report that the title deeds comprisingall the immovable properties of land and buildings which are freehold are held in thename of the Company as at the balance sheet date. The Company does not have any immovableproperties of leasehold land and building.

(ii) As explained to us the inventories were physically verified during the year bythe Management at reasonable intervals and no material discrepancies were noticed onphysical verification.

(iii) The Company has not granted any loans secured or unsecured to Companies FirmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act.

(iv) The Company has not granted any loans made investments or provided guarantees andhence reporting under clause 3 (iv) of the Order is not applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposit and hence reporting under clause 3 (v) of the Order is notapplicable.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of Act. We have broadly reviewed the cost records maintained by the Companypursuant to the Companies (Cost Records and Audit) Rules 2014 as amended prescribed bythe Central Government under sub-section (1) of Section 148 of the Act and are of theopinion that prima facie the prescribed cost records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

(vii) According to the information and explanations given to us in respect ofstatutory dues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Sales Tax Service TaxDuty of Customs Duty of Excise Value Added Tax Cess and other material statutory duesapplicable 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 Duty of Customs Duty of ExciseValue Added Tax Cess and other material statutory dues in arrears as at 31stMarch2017 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Dutyand Value Added Tax which have not been deposited as on 31st March 2017 onaccount of disputes are given below:

Nature of Due Forum where Dispute is Pending Period to which amount relates Amount Unpaid Amount paid under protest
Income Tax Act 1961 (Rs. in Lakhs) (Rs. in Lakhs)
Income Tax Bombay High Court (HC) 1999-00 to 2002-03 311.02 815.69
Income Tax Income Tax Appellate Tribunal (ITAT) Pune 2003-04 and 2005-06 to 2012-13 3748.36 9179.41
Income Tax Commissioner of Income Tax (A) Pune 2004-05 550.94 110.11
Respective Sales Tax Laws - Value Added Tax (VAT) Central Sales Tax (CST) Works Contract Tax (WCT) and Entry Tax
VAT AVATO Delhi 2012-13 5.99 NIL
VAT & CST Sales tax officer Uttar Pradesh 2010-11 13.69 16.50
WCT CST & VAT Joint Commissioner (A)Maharashtra 2001-02 and 2006-07 to 2009-10 2785.72 905.44
Entry Tax Deputy Commissioner Uttar Pradesh 2005-06 & 2006-07 26.00 NIL
VAT & CST Assistant Commissioner Gujarat 2001-02; 2006-07; 2008-09 48.86 10.00
VAT & CST Deputy Commissioner (A) Karnataka 2008-09 to 2010-11 55.59 21.94
VAT Senior Joint Commissioner West Bengal 2007-08 19.25 NIL
VAT & CST Joint Commissioner (A)West Bengal 2010-11 to 2013-14 289.34 40.71
VAT & CST Assistant Commissioner Rajasthan 2006-07 to 2009-10 50.63 NIL
VAT & CST Deputy Commissioner (A) Rajasthan 2009-10 to 2012-13 91.71 NIL
VAT & CST Deputy Commissioner (A) Kerala 2009-10 to 2012-13 214.78 9.63
VAT & CST Special Commissioner Delhi 2007-08 341.48 NIL
VAT & CST Assistant Commissioner Karnataka 2009-10 to 2012-13 294.50 105.00
VAT Deputy Commissioner Jharkhand 1997-98 to 1999-00 & 2011-12 39.73 NIL
VAT Additional Commissioner (Appeal) Uttar Pradesh 2011-12 2012-13 & 2015-16 380.03 NIL
CST Deputy Commissioner Tamilnadu 2012-13 8.05 NIL
VAT Deputy Commissioner (Commercial Tax) Kerala 2013-14 46.46 20.39
CST Deputy Commissioner (Appeals) Maharashtra 2010-11 & 2011-12 1391.79 100.00
VAT & CST Assistant Commissioner Jharkhand 2007-08 & 2012-13 20.46 NIL
VAT Deputy Commissioner Kerala 2009-10 0.74 0.19
VAT Joint Commissioner (A) Delhi 2012-13 & 2015-16 1381.86 NIL
VAT Assistant Commissioner Himachal Pradesh 2012-13 0.40 NIL
CST Deputy Commissioner West Bengal 2013-14 0.75 0.19
VAT Assistant Commissioner Telangana 2014-15 & 2015-16 79.02 11.29
VAT Deputy Commissioner Maharashtra 2012-13 559.87 NIL
CST Commercial Tax Officer Jammu & Kashmir 2011-12 5.33 NIL
CST Commissioner Tax officer Uttar Pradesh 2010-11 0.34 NIL
The Customs Act 1962
Penalty CESTAT Mumbai 2006-07 06.00 NIL
Customs Duty Deputy Commissioner (Customs) Mumbai 1994-95& 2007-08 81.35 NIL
The Central Excise Act 1944
Excise Duty Deputy / Assistant Commissioner Excise Pune 2000-01& 2006-07 to 2009-10 26.09 NIL

(viii) The Company has not taken any loans or borrowings from financial institutionsbanks and government or has not issued any debentures. Hence reporting under clause 3(viii) of the Order is not applicable to the Company.

(ix) During the year the Company has not raised moneys by way of initial public offeror further public offer (including debt instruments) or term loans and hence reportingunder clause 3 (ix) of the Order is not applicable.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) ofthe Order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3 (xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence provisions of Section 192 of the Act arenot applicable.

(xvi) The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's Registration No. 117366W/W-100018)
Sunil S Kothari
Partner
Gurugram 25th May 2017 (Membership No. 208238)