OTIS ANNUAL REPORT 2017-2018...

CORPORATE INFORMATION

Registered Ofce & Head Ofce

9th Floor, Magnus Towers, Mindspace, Link Road, Malad (West),Mumbai - 400 064MaharashtraTel: 91-22-2844 9700/ 66795151Fax: 91-22- 2844 9791CIN: U29150MH1953PLC009158

www.otis.com

Manufacturing Facility

Bengaluru92, KIADB Industrial Estate Phase II,Jigani Industrial Area Anekal Taluk, Bengaluru -560 105

National Service CentreSai Dhara, Block D2, Warehouse No. 3 & 4, Mumbai-Nasik Highway (NH3), Opp. R.K. Petrol Pump,Next to Shangrila Resort,Borivali (Kuksha) Village, Bhiwandi, Pin: 421302Dist: Thane

Regional Ofces9th Floor, Magnus Towers, Mindspace, Link Road, Malad (West),Mumbai - 400 064Maharashtra

Bengal Intelligent Park,Block D - 4th Floor,Block EP & GP, Sector-V Salt Lake,Kolkata - 700 091West Bengal

Unit Nos. 171 & 271,Aggarwal Cyber Plaza - IIC-7, Netaji Subhash Place,Pitampura, New Delhi - 110034

Otis House, MK Towers,#27, Langford Road,Shanti Nagar, Bengaluru - 560 027

Bankers

Citibank N. A.

Standard Chartered Bank

Deutsche Bank

HDFC Bank Limited

Canara Bank

Auditors

M/s. Price Waterhouse & Co Bangalore LLPChartered Accountants

Cost Auditors

M/s. Kishore Bhatia & AssociatesCost Accountants

Secretarial Auditors

M/s. JSP AssociatesCompany Secretary

Registrar & Share Transfer Agents

Link Intime India Pvt Ltd.

C 101, 247 Park, L.B.S Marg , Vikhroli (West),Mumbai – 400083, Maharashtra

Tel.: 91-22-49186270Fax: 91-22-49186060

Email: [email protected] Website: www.linkintime.co.in.

BOARD OF DIRECTORS

Sebi Joseph - Managing DirectorP. S. Dasgupta - Independent DirectorAnil Vaish - Independent DirectorSuma P N - DirectorN. K. Mohanty - Director

CHIEF FINANCIAL OFFICER

Mitesh Mittal

AUDIT COMMITTEE

P. S. Dasgupta - ChairmanSebi Joseph - MemberAnil Vaish - Member

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

Sebi Joseph - Chairman Suma P N - MemberP. S. Dasgupta - Member

NOMINATION AND REMUNERATION COMMITTEE

P. S. Dasgupta - ChairmanN. K. Mohanty - MemberAnil Vaish - Member

STAKEHOLDERS RELATIONSHIP COMMITTEE

N. K. Mohanty - Chairman Sebi Joseph - MemberSuma P N - Member

CONTENTS

Notice

Directors’ Report & Annexures

Standalone Financial Statements

Independent Auditor’s Report

Balance Sheet

Statement of Profit and Loss

Cash Flow Statement

Notes forming a part of the FinancialStatements

Consolidated Financial Statements

Independent Auditors’ Report

Balance Sheet

Statement of Profit and Loss

Cash Flow Statement

Notes forming a part of the Consolidated Financial Statements

Statement in Form AOC-1 related to Subsidiary Companies / Associate Companies / Joint Ventures

Proxy Form

Attendance Slip

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COMPANY SECRETARY

Sanu Kapoor

Route Map to the AGM Venue 153

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NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the SIXTY THIRD ANNUAL GENERAL MEETING of the shareholders of OTIS ELEVATOR COMPANY (INDIA) LIMITED will be held on Friday, September 22, 2017, at 10:30 am at Senate 2, Grand Sarovar Premiere, A.K. Plaza, Veer Savarkar Flyover, S.V. Road, Goregaon (W), Mumbai - 400062 to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt :

a. The Audited Standalone Financial Statements of the Company for the Financial Year ended March 31, 2017 together with the reports of the Board of Directors and Auditors thereon; and

b. The Audited Consolidated Financial Statements of the Company for the Financial Year ended March 31, 2017 together with the report of the Auditors thereon.

2. To appoint a Director in place of Mr. N K Mohanty (DIN: 07220804) who retires by rotation at this meeting and being eligible, offers himself for re-appointment.

3. To appoint Auditors and fix their remuneration and if thought fit, to pass, the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Sections 139, 142 and other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), and pursuant to the recommendation of the Audit Committee, M/s. BSR & Co. LLP, Chartered Accountants (FRN 101248W/W- 100022) be and are hereby appointed as the Statutory Auditors of the Company, in place of M/s. Price Waterhouse & Co Bangalore LLP, Chartered Accountants (FRN 007567S/S-200012), the retiring Auditors for a term of five years commencing from the financial year 2017-18, to hold office from the conclusion of the 63rd Annual General Meeting until the conclusion of the 68th Annual General Meeting, to be held in the calendar year 2022, subject to ratification of their appointment by the Members at every Annual General Meeting on such remuneration plus out-of-pocket expenses, as may be decided by the Board of Directors of the Company.

RESOLVED FURTHER THAT Mr. Sebi Joseph, Managing Director (DIN: 05221403), the Chief Financial Officer and the Company Secretary be and are hereby severally authorized to do all acts and take all such steps as may be necessary, proper and expedient to give effect to this resolution.”

SPECIAL BUSINESS

4. To re-appoint Mr. Sebi Joseph (DIN: 05221403) as Managing Director of the Company and if thought fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 196, 197, 198 & 203 of the Companies Act 2013 (“Act”) read with Schedule V and Rules framed thereunder and

any other applicable provisions , if any, of the said Act (including any amendment, modification, variation or re-enactment thereof), and Articles of Association of the Company and necessary approvals, if any, as may be required, the approval of the members be and is hereby accorded for the re-appointment of Mr. Sebi Joseph (DIN:05221403) as the Managing Director of the Company for a further period of 3 (three) years with effect from March 16, 2018 to March 15, 2021 upon payment of remuneration per annum, not exceeding 5% (five percent) of the net profits of the Company computed under Section 198 of the Act and as may be permitted under other related provisions, if any, of the Act read with the Rules framed thereunder, from time to time, within the above stated limit, during the aforesaid period on the terms and conditions of his appointment , as recommended by the Nomination and Remuneration Committee and approved by the Board of Directors at their meeting held on August 10, 2017 and in this regard authorize the Board of Directors including the Nomination and Remuneration Committee of the Board to alter and vary the remuneration as it may deem fit and to fix the quantum, composition and periodicity of the remuneration payable to the said Managing Director subject however that the annual remuneration does not exceed the limit approved hereinbefore;

RESOLVED FURTHER THAT the Company in accordance with its policy will meet all the approved expenses in connection with the duties exercised by Mr. Sebi Joseph (DIN:05221403) in the capacity of a Managing Director and he shall not be paid any sitting fees for attending meetings of the Board of Directors or Committees thereof;

RESOLVED FURTHER THAT notwithstanding anything to the contrary herein contained, where in any financial year during the currency of his tenure, in the event of loss or inadequacy of profits, the Company will pay remuneration within the limits specified in the Schedule V and any other applicable provisions, if any, of the Act read with the Rules framed thereunder (including any amendment, modification, variation or re-enactment thereof);

RESOLVED FURTHER THAT the remuneration payable to the Managing Director shall not exceed the overall ceiling of the total managerial remuneration as provided under Section 197 of the Companies Act, 2013 or any such other limits as may be prescribed from time to time;

RESOLVED FURTHER THAT all other terms and conditions of his employment, including incentive payment, will be governed by his appointment letter already issued to him and the relevant Company policies;

RESOLVED FURTHER THAT any one Director, Chief Financial Officer and Company Secretary of the Company, be and are hereby severally authorised to take such steps and do all other acts, deeds and things as may be necessary or desirable to give effect to this resolution.”

5. To appoint Ms. Suma P N (DIN: 05350680) as Whole-time Director and, if thought fit, to pass the following resolution as an Ordinary Resolution:

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“RESOLVED THAT pursuant to the provisions of Sections 196, 197, 198 & 203 and other applicable provisions of the Companies Act, 2013 ( “Act”) read with Schedule V and the Rules made thereunder (including any statutory modification or re-enactment thereof) and Articles of Association of the Company, approval of the members of the Company be and is hereby accorded to the appointment of Ms. Suma Puthan Naduvakkat (DIN: 05350680), as Whole-time Director of the Company for a term of (three) years with effect from August 16, 2017 to August 15, 2020 and liable to retire by rotation, upon payment of remuneration per annum, not exceeding 5% (five percent) of the net profits of the Company computed under Section 198 of the Act and as may be permitted under other related provisions, if any, of the Act read with the Rules framed thereunder, from time to time, within the above stated limit, during the aforesaid period on the terms and condi t ions of her appointment, as recommended by the Nomination and Remuneration Committee and approved by the Board of Directors at their meeting held on August 10, 2017 and in this regard authorize the Board of Directors including the Nomination and Remuneration Committee of the Board to alter and vary the remuneration as it may deem fit and to fix the quantum, composition and periodicity of the remuneration payable to Ms. Suma Puthan Naduvakkat (DIN: 05350680) subject however that the annual remuneration does not exceed the limit approved hereinbefore;

RESOLVED FURTHER THAT the Company in accordance with its policy will meet all the approved expenses in connection with the duties exercised by Ms. Suma Puthan Naduvakkat (DIN: 05350680), in the capacity of a Whole-time Director and she shall not be paid any sitting fees for attending meetings of the Board of Directors or Committees thereof;

RESOLVED FURTHER THAT notwithstanding anything to the contrary herein contained, where in any financial year during the currency of her tenure, in the event of loss or inadequacy of profits, the Company will pay remuneration within the limits specified in the Schedule V and any other applicable provisions, if any, of the Act read with the Rules framed thereunder (including any amendment, modification, variation or re-enactment thereof);

RESOLVED FURTHER THAT the remuneration payable to Ms. Suma Puthan Naduvakkat (DIN: 05350680), shall not exceed the overall ceiling of the total managerial remuneration as provided under Section 197 of the Act or such other limits as may be prescribed from time to time.


6. To ratify remuneration payable to the Cost Auditors for the financial year 2017-18 and, if thought fit, to pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148 and other applicable provisions, if any, of the

Companies Act, 2013 (“Act”) and the Rules framed thereunder as amended from time to time, the remuneration payable to M/s. Kishore Bhatia & Associates (FRN: 00294), Cost Accountants, Mumbai, re-appointed by the Board of Directors of the Company, on the recommendation of the Audit Committee, as Cost Auditors to conduct the audit of the cost records of the Company for the financial year 2017-18, amounting to Rs. 1,90,000/- (Rupees One Lakh Ninety Thousand Only) plus applicable taxes and reimbursement of out of pocket expenses at actuals, be and is hereby ratified and approved.


7. To approve payment of commission to the Independent Directors and if thought fit, to pass the following resolution as an Special Resolution:

“RESOLVED THAT pursuant to the provisions of Section 197,198 an all other applicable provisions of the Companies Act, 2013 (“Act”) and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification or re-enactment thereof ) (“Act”) and upon recommendations of the Board of Directors, a sum not exceeding one percent (1%) per annum of the net profits of the Company calculated in accordance with the provisions of Section 198 of the Act, be paid to and distributed amongst the Independent Directors of the Company in such amounts or proportions and in such manner and in all respects as may be directed by the Board of Directors and such payments shall be made in respect of the profits of the Company for each financial year for the period of five years commencing from 1 April, 2018.

RESOLVED FURTHER THAT the above remuneration shall be in addition to fee payable to the Independent Directors for attending the meetings of the Board or Committee thereof or for any other purpose whatsoever as may be decided by the Board of Directors and reimbursement of expenses for participation in the Board and other meetings.”

By Order of the Board of Directors

Sanu Kapoor Company Secretary

REGISTERED OFFICE: 9th Floor, Magnus Towers,Mindspace, Malad Link Road Malad (W), Mumbai- 400 064 Maharashtra Tel: 91-22-2844 9700/ 66795151Fax: 91-22- 2844 9791CIN: U29150MH1953PLC009158

www.otis.com

Mumbai, August 10, 2017

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Annual Report 2016 - 2017

NOTICE OF ANNUAL GENERAL MEETINGNotes: 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT

THE ANNUAL GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF, AND THE PROXY NEED NOT BE A MEMBER OF THE COMPANY.

2. Proxy, in order to be effective, must be received at the Registered Office of the Company, duly completed and signed, not less than 48 hours before the commencement of the meeting. Proxies submitted by an authorized representative of companies, societies etc., must be supported by an appropriate resolution/ authority, as applicable.

A person can act as a proxy on behalf of not exceeding 50

members and holding in the aggregate not more than 10% of the total share capital of the Company carrying voting rights. A member holding more than 10% of the total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other person or member.

3. An Explanatory Statement under Section 102 of the Companies Act, 2013 in respect of Item Nos. 3 to 7 to be transacted at the Meeting is appended hereto.

4. The Register of Members and the Share Transfer Books of the Company will remain closed from Friday, September 15, 2017 to Friday, September 22, 2017 (both days inclusive).

5. Members holding shares in electronic form may note that bank particulars registered against their respective depository accounts will be used by the Company for payment of dividend. Members holding shares in electronic form are requested to intimate immediately any change in their address or bank mandates to their Depository Participants with whom they are maintaining their demat accounts. The Company or its Registrar and Share Transfer Agents (RTA) cannot act on any request received directly from the members holding shares in electronic form for any change of bank particulars or bank mandates.

Shareholders are requested to provide Bank details to facilitate payment of dividend either in electronic mode or for printing on the payment instruments.

6. For any quer ies/ gr ievances in respect of the shareholdings, the shareholders are requested to send their communication to the Company’s Registrar and Share Transfer Agents (RTA) – Link Intime India Private Limited located at C 101, 247 Park, LBS Road, Vikhroli (West), Mumbai- 400089, Tel No. +91 22 49186270 Fax: +91 22 49186060 Email Id: [email protected] Website: www.linkintime.co.in.

Further Members are requested to:

I. Quote their folio number / client ID no. in all correspondence with the Company/RTA.

ii. Members holding shares in physical form are requested to intimate the following directly to the Company’s RTA:

a. Changes, if any, in their address with pin code numbers.

b. Quote their ledger folio no. in all their correspondence.

c. Request for nomination forms for making nominations

7. The amount outstanding in unpaid dividend account in respect of financial year ended March 31, 2012, March 31, 2013, March 31, 2014, March 31, 2015 and March 31, 2016 will be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Government after the end of seven years from the respective date of transfer of the same to the Company’s unpaid dividend account. The shareholders are advised to send all the un-encashed demand drafts/dividend warrants pertaining to the above years to our RTA for revalidation or issuance of fresh demand drafts/dividend warrants.

8. In compliance with Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014 as amended by the Companies (Management and Administrat ion) Amendment Rules, 2015 the Company has provided a facil ity to the members to exercise their votes electronically through the electronic voting service facility arranged by Central Depository Services Limited.

9. The facility for voting through ballot paper will also be made available at the 63rd Annual General Meeting (“AGM”) and the members attending the AGM who have not already cast their votes by remote e-voting shall be able to exercise their right at the AGM through ballot paper. Members who have already cast their votes through remote e-voting prior to AGM may attend the AGM but shall not be entitled to cast their votes again.

10. The Company has appointed Mr. Jatin Popat, proprietor of M/s. JSP Associates, Practicing Company Secretary, Mumbai as Scrutinizers for conducting the remote e-voting and physical voting at the AGM in a fair and transparent manner.

11. The instructions for shareholders voting electronically are as under:

(i) The remote e-voting period begins on September 19, 2017 at 9.00 am and ends on September 21, 2017 at 5.00 pm. During this period shareholders’ of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date September 15, 2017, may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

(ii) The shareholders should log on to the e-voting website www.evotingindia.com.

(iii) Click on Shareholders.

(iv) Now, Select the “COMPANY NAME” from the drop down menu and click on “SUBMIT”

(v) Now Enter your User ID

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a. For CDSL: 16 digits beneficiary ID, b. For NSDL: 8 Character DP ID followed by 8

Digits Client ID, c. Members holding shares in Physical Form

should enter Folio Number registered with the Company.

(vi) Next enter the Image Verification as displayed and Click on Login.

(vii) If you are holding shares in demat form and had logged on to www.evotingindia.com and cast vote earlier for EVSN of any company, then your existing password is to be used.

(viii) If you are a first time user follow the steps given below:

(ix) After entering these details appropriately, click on “SUBMIT” tab.

(x) Members holding shares in physical form will then directly reach the Company selection screen. However, members holding shares in demat form will now reach ‘Password Creation’ menu wherein they are required to mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential.

(xi) For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this Notice.

(xii) Click on the EVSN for the relevant Otis Elevator Company (India) Limited and on which you choose to vote.

(xiii) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies that you dissent to the Resolution.

(xiv) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

(xv) After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote.

(xvi) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

(xvii) You can also take out print of the voting done by you by clicking on “Click here to print” option on the Voting page.

(xviii) If Demat account holder has forgotten the same password then Enter the User ID and the image verification code and click on Forgot Password & enter the details as prompted by the system.

(xix) Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based mobiles. The m-Voting app can be downloaded from Google Play Store. Apple and Windows phone users can download the app from the App Store and the Windows Phone Store respectively. Please follow the instructions as prompted by the mobile app while voting on your mobile.

(xx) Note for Non – Individual Shareholders and Custodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on to www.evotingindia.com and register themselves as Corporates.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to [email protected].

• After receiving the login details a compliance user should be created using the admin login and password. The Compliance user would be able to link the account(s) for which they wish to vote on.

• The l ist of accounts should be mailed to [email protected] and on approval of the accounts they would be able to cast their vote.

For Members holding shares in Demat Form and Physical Form

PAN

Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for both demat shareholders as well as physical shareholders)• Members who have not updated their PAN with the Company/Depository Participant are requested to use the first two letters of their name and the 8 digits of the sequence number in the PAN Field.• In case the sequence number is less than 8 digits enter the applicable number of 0’s before the number after the first two characters of the name in CAPITAL letters. E.g. If your name is Ramesh Kumar with sequence number 1 then enter RA00000001 in the PAN Field.

DOBEnter the Date of Birth as recorded in your demat account or in the company records for the said demat account or folio in dd/mm/yyyy format.

• Enter the Dividend Bank Details as recorded in your demat account or in the company records for the said demat account or folio.• Please enter the DOB or Dividend Bank Details in order to login. If the details are not recorded with the depository or company please enter the member id / folio number in the Dividend Bank details field as mentioned in instruction (v).

Dividend Bank Details

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• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.

(xxi) In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or write an email to [email protected].

12. The results shall be declared on or after the annual general meeting of the Company. The results declared along with the scrutinizer’s report shall be placed on the Company’s website www.otis.com and on the web site of CDSL within two (2) days of passing of the resolutions at the annual general meeting of the Company.

13. A member can opt for only one mode i.e. either through e-voting or voting at the annual general meeting. If a member casts votes by both modes, then voting done through e-voting shall prevail and the voting at annual general meeting shall be treated as invalid.

14. Members desiring any information as regards the Annual Report are requested to write to the Company Secretary at the Registered Office, Mumbai at least ten (10) days before the date of the Annual General Meeting so that information can be made available at the meeting.

15. To promote green initiative as per circular issued by Ministry of Corporate Affairs in 2011, members are requested to register their e-mail addresses through their Depository Participants where they are holding their demat accounts for sending the future communications by e-mail. Members holding the shares in physical form may register their e-mail addresses through the RTA, giving reference of their Folio Number.

16. Members are requested to bring their copy of the Annual Report with them to the Annual General Meeting.

17. All documents referred to in the accompanying Notice and the Explanatory Statement shall be open for inspection at the Registered Office of the Company during normal business hours from Monday to Friday, up to and including the date of the Annual General Meeting of the Company.

Annexure to the Notice

The Explanatory Statement as required under Section 102(1) of the Companies Act, 2013

Item No. 3

This Explanatory Statement is provided though strictly not required as per 102 of the Companies Act, 2013

M/s. Price Waterhouse & Co. Bangalore LLP, (Firm Registration No. 007567S/S-200012), Chartered Accountants were appointed as the Statutory Auditors at 61st Annual General Meeting (“AGM”) held on September 23, 2015 for a period of three years. Pursuant to the provisions of Section 139 of the Companies Act, 2013 (“Act”) read with applicable Rules framed thereunder, as amended, M/s. Price Waterhouse & Co. Bangalore LLP, the present Auditors of the Company completed

their term as Auditors and in terms of their appointment made at the 61st AGM, they are holding office of the Auditors up to the conclusion of the 63rd AGM and hence, would retire at the conclusion of the forthcoming 63rd AGM. As per Section 139(2) of the Companies Act, 2013 ('the Act'), an additional transition period of three years from the commencement of the Act was provided to appoint a new auditor when the existing audit firm (including its affiliate firms) would complete their two terms of five consecutive years.

M/s. Price Waterhouse & Co. Bangalore LLP (along with its network Firms) have completed period of ten years and will also complete the additional transition period of three years at the conclusion of the forthcoming 63rd AGM. The Audit Committee and the Board of Directors have placed on record their appreciation for the professional services rendered by M/s. Price Waterhouse & Co. Bangalore LLP, (FRN 007567S/S-200012) and its network Firms during their association with the Company as the Auditors. For the purpose of appointment of new Auditors, the Management, invited proposals from the reputed firms of Chartered Accountants and had detailed discussion with representatives of those firms. The Audit Committee considered various parameters such as reputation of the firm, knowledge and experience of the partners, understanding of business, technical assessment of the Audit skills and the Audit fees and based on these detailed analysis, the Audit Committee recommended M/s. BSR & Co. LLP, (FRN 101248W/W- 100022) as the Company's new Statutory Auditors.

M/s. BSR & Co. LLP(FRN 101248W/W- 100022), Chartered Accountants is an independent Indian Limited Liability Partnership with its head office at : IT Building No. 2, Hall 4, Nesco IT park, Nesco Complex, Western Express Highway, Goregaon (East), Mumbai 400 063.

M/s. BSR & Co. LLP (FRN 101248W/W- 100022), Chartered Accountants have consented to the said appointment and confirmed that their appointment, if made, would be within the limits specified under Section 141(3)(g) of the Act. They have further confirmed that they are not disqualified to be appointed as statutory auditors in terms of the provisions of the proviso to Section 139(1), Section 141(2) and Section 141(3) of the Act and the provisions of the Companies (Audit and Auditors) Rules, 2014 as amended. Accordingly, as per the said requirements of the Act, BSR & Co. LLP (FRN 101248W/W- 100022), Chartered Accountants are proposed to be appointed as auditors for a period of five consecutive years, commencing from the conclusion of this 63rd AGM until the conclusion of the 68th AGM subject to ratification by members every AGM .

The Board of Directors recommends the Ordinary Resolution as set out at item no. 3 of the Notice for approval of the Members.

Interest of Directors:None of the Directors and Key Managerial Personnel of the Company or their relatives are concerned or interested financially or otherwise, in the resolution.

Item No. 4

Mr. Sebi Joseph (DIN: 05221403) (aged 55 years) leads the core team that drives the growth and performance at Otis India and has contributed significantly to the transformation of the Company in the past 5 years.

Mr. Joseph joined the Board of the Company as Additional and Whole-time Director with effect from March 07, 2012. He was

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appointed as Managing Director with effect from March 16, 2012 for a tenure of three years till March 15, 2015 and was further re-appointed as Managing Director from March 16, 2015 till March 15, 2018.

As part of the initiative to create enduring guidance for the Company the Board of Directors of the Company has approved re-appointment of Mr. Joseph for a further period of three years with effect from March 16, 2018 till March 15, 2021 in its meeting held on August 10, 2017, on the recommendation of the Nomination & Remuneration Committee.

Mr. Joseph holds a Bachelor’s Degree in Mechanical Engineering and Master’s Degree in Business Administration. He is the Chairman of IEEMA ( Indian Electrical & Electronics Manufacturers’ Association)- Elevator & Escalator Division and has overall 30 years of valuable experience. He is also director on the Boards of: Supriya Elevator Company (India) Limited (Wholly Owned Subsidiary of the Company) and Elevators (Private) Limited (Sri Lanka).

He has attended four out of five Meetings of the Board held during the financial year 2016-17. He holds the membership of the following Committees of the Board :

Mr. Sebi Joseph does not hold any shares in the Company and is not related with any other Director or Key Managerial Personnel of the Company. Remuneration last drawn by him for the financial year 2016-17 was INR 36,874,681. The re-appointment will be on the existing terms and conditions of his employment with the Company and remuneration shall be as set out in the resolution.

The Board considered the various aspects relating thereto including experience, future business prospectus, effect of re-appointment in the effective management of the affairs of the Company etc. and such re-appointment is in accordance with the provisions of the Companies Act, 2013 read with Schedule V and the Rules framed thereunder as amended and is subject to the approval of the members of the Company.

In terms of the provisions of the Companies Act, 2013, the consent of the members is required for the re-appointment and remuneration of Mr. Sebi Joseph (DIN 05221403) as the Managing Director of the Company.

The Board recommends the Ordinary Resolution as set out at item no. 4 of the Notice for approval of the members. The terms set out in the resolution and in the explanatory statement may be treated as an abstract of the terms and conditions governing his re-appointment and remuneration and memorandum of interest pursuant to Section 190 of the Companies Act, 2013.

Interest of Directors:None of the Directors, Key Managerial Personnel or their

relatives are concerned or interested, financially or otherwise, in this resolution except Mr. Sebi Joseph and his relatives.

Item No. 5

Ms. Suma Puthan Naduvakkat (DIN: 05350680), (aged 48 years) was appointed as an Additional Director by the Board of Directors in its meeting held on March 10, 2015 and appointed as Director in the 61st Annual General Meeting held on September 23, 2015.

The Board of Director has approved her appointment as Whole-time Director in its meeting held on August 10, 2017 for a period of three years with effect from August 16, 2017 to August 15, 2020 on the recommendation of the Nomination & Remuneration Committee (“NRC”).

Ms. Suma holds a Post Graduate Diploma in Personnel Management from St. Josephs College and she is an MBA from Indira Gandhi National Open University. She also completed a two year Management Program (MTP). Ms. Suma brings in over 28 years of valuable experience.

She is not holding any Directorships, Memberships/ Chairmanship of Committees of any other Company. She has attended all the five (5) Meetings of the Board held during the financial year 2016-17 and holds the membership of the following Committees of the Board :

Ms. Suma P N does not hold any shares in the Company and is not related to any other Director or Key Managerial Personnel of the Company. Remuneration drawn by her for the financial year 2016-17 was INR 14,387,872. The appointment including the remuneration is on the existing terms and conditions of her employment with the Company.

The NRC while recommending her appointment as Whole-time Director, considered the various aspects relating thereto including experience, future business prospectus etc. She has also given her consent to act as Whole-time Director of the Company. Her appointment as the whole-time director is in accordance with the provisions of the Companies Act, 2013 read with Schedule V and the Rules framed thereunder as amended and is subject to the approval of the members of the Company. In terms of the provisions of the Companies Act, 2013, the consent of the members is required for the appointment and remuneration of Ms. Suma Puthan Naduvakkat (DIN: 05350680), as the whole-time Director of the Company.

The Board recommends the Ordinary Resolution as set out at item no. 5 of the Notice for approval of the members. The terms set out in the resolution and in the explanatory statement may be treated as an abstract of the terms and conditions governing his appointment and remuneration and memorandum of interest pursuant to Section 190 of the Companies Act, 2013.

Sr. No.

1.

Name of the Company Name of the Committee

Otis Elevator Co. (India) Ltd.

Corporate Social Responsibility Committee

Stakeholders RelationshipCommittee

Sr. No.

1.

Name of the Company Name of the Committee

Otis Elevator Co. (India) Ltd.Corporate SocialResponsibility Committee– ChairmanStakeholders Relationship Committee-Member

Audit Committee - Member

08


Interest of Directors:None of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financially or otherwise, in this resolution except Ms. Suma PN and her relatives.

Item No. 6

The Board of Directors, on the recommendation of the Audit Committee, has approved the re-appointment of M/s. Kishore Bhatia & Associates as the Cost Auditors to conduct the audit of the cost records of the Company for the financial year ending March 31, 2018 at a remuneration of Rs.1,90,000/- plus applicable taxes and out-of pocket expenses at actuals.

In accordance, with the provisions of Section 148 of the Companies Act, 2013 read with the Rules framed thereunder as amended, the remuneration payable to the Cost Auditors has to be ratified by the members of the Company.

Accordingly, consent of the members is sought for passing an Ordinary Resolution set out at item no. 6 of the Notice.

Interest of Directors:None of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financially or otherwise, in this resolution.

Item No. 7

The members of the Company at their 58th Annual General Meeting held on September 28, 2012 approved by way of special resolution, the payment of remuneration by way of commission to the Independent Directors of the Company, of a sum not exceeding 1% per annum of the net profits of the Company. Calculated in accordance with the Companies Act 1956, for a period of five years.

Taking into account the responsibilities of the Independent Directors, it is proposed that in terms of Section 197 of the Act and based on the recommendation of the Board, the Independent Directors be paid for each of the five financial years of the Company commencing from 1 April, 2018, remuneration not exceeding one (1) percent per annum of the net profits of the Company computed with the provisions of the Companies Act, 2013 read with the Rules framed thereunder as amended. This remuneration will be distributed amongst the Independent Directors in accordance with the directions given by the Board.

Accordingly, consent of the members is sought for passing a Special Resolution set out at item no. 7 of the Notice.

None of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financially or otherwise, in the resolution, except the Independent Directors of the Company and their respective relatives.

By Order of the Board of Directors


REGISTERED OFFICE: 9th Floor, Magnus Towers,Mindspace, Malad Link Road Malad (W), Mumbai- 400 064Maharashtra Tel: 91-22-2844 9700/ 66795151Fax: 91-22- 2844 9791CIN: U29150MH1953PLC009158

www.otis.com



09

DIRECTORS’ REPORT

DIRECTORS’ REPORT

Dear Members,

Your Directors have pleasure in presenting the Sixty Third Annual Report on the business and operations of the Company, together with the Audited Financial Statements for the Financial Year ended March 31, 2017.

FINANCIAL HIGHLIGHTS: Financial highlights of the Company are presented in the table below:

DIVIDENDYour Company paid interim dividend of 3600%, being Rs. 360 per equity share of Rs. 10 each fully paid up in July 2017 for the financial year 2017-18. In view of this, no final dividend is recommended for the year under review. The Register of Members and Share Transfer Books shall remain closed from Friday September 15, 2017 to Friday September 22, 2017 (both days inclusive) for the purpose of Annual General Meeting.

TRANSFER TO RESERVEDuring the year under review, an amount of Rs. 9,121 million is proposed to be carried forward to the Profit & loss Account and no amount was transferred to General Reserve.

REVIEW OF OPERATIONS

FINANCIALSOn Standalone basis, Sales from operations for FY 2016-17 at Rs. 12,703 million, was higher by 2,017 million over last year (Rs.10,686 million in FY 2015-16) reflecting increase of 18.90%. New equipment sales and service business has shown good revenue growth. Profit after tax (“PAT”) for the year was Rs. 1,396 million registering an increase of 14.40% over the PAT of Rs.1,220 million in FY 2015-16, driven by reduction in non - operating other income.

(Rs. in millions)Standalone Consolidated

2016-17 2015-16 2016-17 2015-16

Revenue from operation Other IncomeTotal IncomeProfit before taxAdd / (Less):Exceptional itemsProvision for TaxNet Profit after taxShare of Net Profit of AssociatesSurplus brought forwardProfit after tax available for appropriation Items of Other Comprehensive IncomeAppropriation:Interim & Proposed DividendDividend Distribution taxTransaction with Non-controlling InterestSurplus carried forward

On Consolidated basis, Sales from operations for FY 2016-17 at Rs. 12,850 million was higher by 18.85% over last year (Rs. 10,812 million in FY 2015-16). Profit after tax (“PAT”) for the year was Rs. 1,401 million recording an increase of 9.20 % over the PAT of Rs.1,282 million of FY 2015-16.

BUSINESSThe fiscal year 2016-17 saw a GDP growth rate of 7.1%. We have seen improvement in overall economy, in terms of Industrial production, inflation, FDI investments etc. While the Real estate sector has seen some sign of revival with increase in absorption, the new launches continue to show declining trend due to high inventory pile up. However, with absorption trend improving and inventory level dropping, the new launches are expected to see an improving trend in the near future. Even though in the short term there will be an impact of the Demonetization, GST as well as the Real Estate (Regulation and Development) Act, 2016 (“RERA”), the overall outlook remains to be positive for the industry. The RERA, which will bring more transparency to the industry and fuel long term efficiency and growth in the industry. The drop in borrowing rate is also expected to boost demand for more housing.

As you are aware, your Company’s revenue accrues from three major business segments-New Equipment sales, Service and Modernisation:

NEW EQUIPMENT SALES The market is going through the lag effect of Demonetization and with the impending GST the outlook is of moderate growth. Your Company has been improving share in the segment and will continue the journey to grow our share further. The products portfolio and the Sales footprint has been enhanced. Your Company intends to continue to invest to further expand the product portfolio & the foot-print to enhance turnkey execution and service capabilities. The Gen2 Core launched last year has been a consistent performer and has captured significant share in its segment this has helped in the overall share growth. Your Company will continue to leverage its access to world class technologies and processes. SERVICE Your Company continues to be the largest Company in terms of service portfolio and revenue, in India. Today, we have a network of 97 service centres spread across India, serving more than 300 cities and towns. 24/7 call centre and extensive service network ensures speedy and efficient response to customers. Your Company has registered healthy growth in Service revenue in the year under review. To stay ahead of competition and retain our leadership position, Your Company is investing heavily in digitalization, technology, manpower and skill development.

MODERNISATION (MOD) With new MOD products and increase in the sales coverage your Company has registered growth in modernisation revenues in the year under review. In the 1st quarter of 2017, the Company has launched a new package for modernization and planning to launch few more packages, in the coming year, which will fuel growth in Modernization business.

12,7031,119

13,8222,175

(14)764

1,396

9,06310,459

12

1,122228

9,121

10,6861,008

11,6941,913

(68)625

1,220-

8,6419,861

(16)

650132

9,063

12,8511,119

13,9702,168

-767

1,40114

9,03610,451

13

1,122228

(207)

9,084

10,8121,009

11,8211,920

6371,283

158,5509,848

(16)

650132

9,037

10


DIRECTORS’ REPORT

CURRENT OUTLOOK: Otis India has been progressing well in their effort to localize their global products at their state of art manufacturing facility in Bangalore. There are a number of products that are being planned to be launched both in the short term and long term. Our launches during the year 2014, 2015, 2016 and for products like Gen2 Infinity, Nova MRL and Gen2 Core will continue to bear traction in years to come. In the 2nd quarter of 2017, we had new product launch for Infinity MRL and also your Company launched the new aesthetics program. On the Modernization front there was a new product Manual to Auto. With these initiatives and execution, as planned, we are now poised to see sound growth in Order booking as well as segment share improvement. India remains to be the second largest elevator-escalator market in the world after China, expected to grow at a healthy rate 6-7% for the next 5 years. The Company management is closely monitoring and reviewing these changes to suitably modify its business strategy in accordance with the changing market environment. The Company continues to promote green products which will have a positive environmental impact. Your Company is confident of forging ahead without compromising on its core values, while sustaining its brand-value with its customers.

SAFETY

Your Company continues to strive to ensure that its products and services are safe; its workplaces are safe from hazards. During the year under review the Company continued to maintain high safety standard.

CERTIFICATION

Your Company is certified for ISO 9001:2008 (Quality Management System) and ISO 14001:2004 (Environmental Management System).

CONSOLIDATED FINANCIAL STATEMENTS

The Annual Consolidated Financial Statements together with the Report of the Auditors’ thereon forms part of this Annual Report.

REVIEW OF SUBSIDIARIES AND ASSOCIATES

Your Company had one Subsidiary Company -Supriya Elevator Company (India) Ltd. (Supriya) with 80% stake. During the year, your Company purchased the remaining 20% stake in Supriya, by virtue of this, Supriya Elevator Co. (India) Ltd is now a Wholly Owned Subsidiary of your Company. Your Company has one Associate Company Trio Elevators Company (India) Ltd. Financials of the Subsidiary Company are disclosed in the Consolidated Financial Statements, which form part of the Annual Report.

A Statement containing salient features of the Financial Statements of the Subsidiaries and Associate Companies is attached to the Financial Statements pursuant to section 129(3) of the Companies Act, 2013 and Rules made thereunder as amended in the prescribed Form AOC -1.

There has been no change in the nature of business of the Company and its Subsidiary Company during the year.

The Company has obtained a Certificate from the Statutory Auditors of the Company for the year under review certifying that the Company is in compliance with the FDI conditionality's under Foreign Exchange Management Act, 1999 for downstream investment by the Company.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 134(3) (c) of the Companies Act, 2013, your Directors state that:I. in the preparation of the annual accounts for the year

ended March 31, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures if any;

ii. the directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2017 and of the profit and loss of the Company for the year ended March 31, 2017;

iii. the directors had 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;

iv. the directors had prepared the annual accounts on a going concern basis.

v. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and such systems were adequate and operating effectively.

P A R T I C U L A R S O F L O A N S G U A R A N T E E S O R

INVESTMENT U/S 186

Details of Loans, Guarantees and Investment covered under the provisions of Section 186 of the Companies Act, 2013 read with the Rules framed thereunder as amended, are given in the notes to the Financial Statements. The Company has complied with the requirements of Section 186 of the Companies Act, 2013 read with the Rules framed thereunder as amended.

FIXED DEPOSITS

The Company has not accepted any deposits within the meaning of section 73 of the Companies Act, 2013 read with the Companies (Acceptance of Deposits) Rules, 2014 as amended from time to time and as such, no amount on account of principal or interest on public deposits was outstanding as on the date of balance sheet.

RISK MANAGEMENT POLICY

In today’s economic environment, Risk Management is a very important part of business. Your Company’s risk management is embedded in business. The Company has formulated and implemented a mechanism for Risk Management and has developed a Risk Management Policy. Risks are classified in different categories such as Business and Compliance related risks. These risks are reviewed on a periodic basis and controls are put in place and mitigation planned with identified process owners and defined timelines.

11

DIRECTORS’ REPORTDIRECTORS

Mr. N K Mohanty retires by rotation at the ensuing Annual General Meeting and being eligible offers herself for re-appointment.

Attention of the Members is invited to the relevant items in the Notice of the Annual General Meeting seeking your approval to the aforesaid appointments.

Mr. P S Dasgupta (DIN: 00012552) and Mr. Anil Vaish (DIN: 00208119), the Independent Directors of the Company have furnished declarations that they meet the criteria of Independence as laid down under section 149(6) of the Companies Act, 2013 and there has been no change in the circumstances which may affect their status as independent director during the year.

There has been no change in the key managerial personnel during the year.

REMUNERATION POLICY

The Board on the recommendation of the Nomination and Remuneration Committee had adopted the policy for selection, appointment and remuneration of Directors, Key Managerial Personnel and Senior Management.

The Company’s policy on directors’ appointment and remuneration and other matters provided in section 178(3) of the Act and rules framed thereunder as amended, has been disclosed on the Company’s website at http://www.otis.com/site/in/pages/Investor_Relations.aspx?menuID=6

NUMBER OF MEETINGS OF THE BOARD

The Board met five times during the financial year 2016-17 on June 20 2016, August 05, 2016, November 21, 2016, February 14, 2017 and March 07, 2017. The necessary quorum was present for all the meetings. The maximum interval between any two meetings did not exceed 120 days.

Details of attendance of directors at the Board Meetings and Annual General Meeting (AGM) during the financial year 2016-17 are provided below:

+Mr. Sebi Joseph did not attend the Board meeting held on February 14, 2017.^Mr. P S Dasgupta did not attend the Board meetings held on November 21, 2016 and February 14, 2017. *Mr. Nirmal Kumar Mohanty did not attend the Board meetings held on November 21, 2016 and March 07, 2017.

# Mr. Anil Vaish did not attend the Board meeting held on March 07, 2017.

AUDIT COMMITTEE

The constitution of the Audit Committee, its scope, role and terms of reference are as per the provisions of the Companies Act, 2013, and the Rules framed thereunder as amended. All the recommendations made by the Audit Committee were accepted by the Board.The members of the Audit Committee are as under:

1. Mr. P S Dasgupta, Independent Director -Chairman2. Mr. Anil Vaish, Independent Director – Member 3. Mr. Sebi Joseph -Member

AUDITORS

M/s. Price Waterhouse & Co LLP Bangalore, Chartered Accountants (FRN 007567S/S-200012), were appointed as Statutory Auditors to hold office from the conclusion of the 61st Annual General Meeting (“AGM”) to the conclusion of the 63rd AGM.

Pursuant to the provisions of Section 139 of the Companies Act, 2013 (“Act”) and the Rules framed thereunder as amended, an additional transition period of three years from the commencement of the Act was provided to appoint a new auditor when the existing Audit Firm (including its affiliate firms) would complete their two terms of five consecutive years.

M/s. Price Waterhouse & Co. Bangalore LLP (along with its network Firms) have completed period of ten years and will also complete the additional transition period of three years at the conclusion of the forthcoming 63rd AGM.

Pursuant to Section 139 of the Act and on the recommendation of the Audit Committee, it is now proposed to appoint M/s. BSR & Co. LLP, Chartered Accountants (FRN 101248W/W- 100022), as Statutory Auditors of the Company for a term of 5 (five) years from the conclusion of 63rd AGM until the conclusion of 68th AGM. The said Auditors have given their eligibility certificate in terms of Section 139 of the Companies Act, 2013.

A Resolution seeking the appointment of M/s. BSR & Co. LLP, Chartered Accountants (FRN 101248W/W- 100022), as Statutory Auditors of the Company forms part of the Notice convening the 63rd AGM and the same is recommended for the members approval.

During the year under review, the retiring Auditors have not reported any matter under section 143(12) of the Act and therefore no details are disclosed under Section 134 (3) (ca) of the Act.

The Auditors' Report for the financial year 2016-17 does not contain any qualifications, reservations or adverse remarks.

COST AUDITORS

The Board of Directors at its Meeting held on August 10, 2017, based on the recommendation of the Audit Committee, re-appointed, M/s. Kishore Bhatia & Associates, (FRN: 00294) Cost Accountants, Mumbai as the Cost Auditor of the Company for undertaking cost audit of the Cost Accounting Records to be maintained by the Company for the financial year 2017-18 at a remuneration of Rs.1,90,000/- (Rupees One Lakh Ninety

Name Designation Number of Board Whether attendedMeetings last AGM held onattended September 22, 2016

+Mr. Sebi Joseph Managing Director Yes

^Mr. P S Dasgupta Non-Executive Yesindependent Director

Ms. Suma P N Director Yes

*Mr. Nirmal Kumar Mohanty Director No

##Mr. Anil Vaish Non- Executive

4

3

5

3

4 NoIndependent Director

12


DIRECTORS’ REPORT

Thousand) plus applicable taxes and out-of pocket expenses at actuals. The said Auditors have given their eligibility certificate for appointment as Cost Auditors. The remuneration payable to the said Cost Auditors needs to be ratified by members at the ensuing 63rd Annual General Meeting. The Cost Audit Report for the financial year 2015-16, was filed with the Ministry of Corporate Affairs on September 2, 2016.

SECRETARIAL AUDITOR

Pursuant to the provision of Section 204 of Companies Act, 2013 read with the Rules framed there under, the Board has appointed M/s. JSP Associates, Company Secretary in Practice (having Firm Registration Number S2004MH073200), to undertake Secretarial Audit of the Company for the Financial Year 2016-17. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark. Report of the secretarial auditor is annexed as Annexure-A which forms part of this report.

ENERGY CONSERVATION, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The particulars as required under Section 134(3) (m) of the Companies Act, 2013, and Rules made thereunder as amended are set out in Annexure-B to this Report.

PARTICULARS OF EMPLOYEES

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rule (5) (2) and Rule (5) (3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 as amended, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said Rules is annexed as Annexure- C to this Report.

EXTRACT OF ANNUAL RETURN

The Extract of the Annual Return in Form No. MGT-9 as per Section 134 (3) (a) of the Companies Act, 2013 and Rules made thereunder as amended is annexed as Annexure-D to this Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Your Company has been supporting charitable and social causes in the communities, where it does business. The CSR Committee of the Board of Directors of the Company consists of Mr Sebi Joseph - Chairman of the CSR Committee, Mr P S Dasgupta - Independent Director and Ms Suma P – Director.

The present CSR initiatives focus is on promoting education a recognised activity mentioned in Schedule VII of the Companies Act, 2013. The Company’s CSR policy is available on the website of the Company and the report on Corporate Social Responsibility (CSR) activities as required under Section 135 of the Companies Act, 2013 is annexed as Annexure-E to this Report.

During the year under review, the Company has spent 2% of the average profits, for the last three financial years as stipulated in the Companies Act, 2013 read with the Rules framed thereunder, as amended.

RELATED PARTY TRANSACTIONS

All the Related Party Transactions that were entered into during the financial year under review were in ordinary course of business and on arm’s length basis. The Audit Committee has given its approval for the Related Party Transactions. The material transactions on arm’s length basis are furnished in the prescribed Form- AOC 2 is annexed to this Report as Annexure-F.

INTERNAL FINANCIAL CONTROLS

The Company has an adequate internal financial control with reference to the Financial Statements operating effectively for ensuring the accuracy and completeness of the accounting records.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

The Company has in place a Prevention of Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. The Policy has set guidelines on the redressal and enquiry process that is to be followed by complainants and the ICC, whilst dealing with issues related to sexual harassment at the work place. All employees (permanent, contractual, temporary, trainees), third parties who deal with our Company are covered under this Policy. The Company has not received any complaints during the year.

ACKNOWLEDGEMENTS:

Your Directors acknowledge the support and wise counsel extended to the Company by analysts, bankers, government agencies, members, investors, suppliers, distributors and others associated with the Company as its business partners for their continued and unstinted support.

For and on behalf of the Board of Directors

Sebi Joseph Managing Director DIN 05221403


Suma P NDirectorDIN 05350680

13

ANNEXURE A TO THE DIRECTORS' REPORTSECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2017[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014]

To,The MembersOtis Elevator Company (India) LimitedMagnus Tower, 9th Floor,Mind Space, Link RoadMalad (West), Mumbai – 400 064

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to corporate practices by Otis Elevator Company (India) Limited (hereinafter called 'the Company') for the audit period covering the financial year ended on 31st March, 2017 (the 'audit period'). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing my opinion thereon.

Based on my verification of the Company's books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, and subject to my separate letter attached as Annexure I; I hereby report that in my opinion, the Company has, during the audit period generally complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter.

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on 31st March, 2017 according to the provisions of:

(I) The Companies Act, 2013 ('the Act') and the Rules made thereunder;

(ii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iii) Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign Direct Investment;

(iv) The following Regulations prescribed under the Securities and Exchange Board of India Act, 1992 ('SEBI Act'):-(a) The Securities and Exchange Board of India

(Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

I have also examined compliance with the applicable clauses of the Secretarial Standards issued by the Institute of Company Secretaries of India related to meetings and minutes.

During the period under review, the Company has generally complied with the provisions of the Act, Rules, Regulations, Standards mentioned above.

During the period under review, provisions of the following regulations were not applicable to the Company:

(i) The Securities Contracts (Regulation) Act, 1956 (SCRA) and the Rules made thereunder;

(ii) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

(iii) The Securities and Exchange Board of India (Prohibition

of Insider Trading) Regulations, 2015;(iv) The Securities and Exchange Board of India (Issue of

Capital and Disclosure requirements) Regulations, 2009;(v) The Securities and Exchange Board of India (Share

Based Employee Benefits) Regulations, 2014; (vi) The Securities and Exchange Board of India (Issue and

Listing of Debt Securities) Regulations, 2008;(vii) The Securities and Exchange Board of India (Delisting of

Equity Shares) Regulations, 2009; (viii) The Securities and Exchange Board of India (Buyback of

Securities) Regulations, 1998;(ix) The Securities and Exchange Board of India (Listing

Obligations and Disclosure Requirements) Regulations, 2015;

I further report that -The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act.

Proper notice was given to all Directors to schedule the Board meetings in compliance with the provisions of Section 173(3) of the Companies Act, 2013, agenda and detailed notes on agenda were generally sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Decisions at the meetings of the Board of Directors of the Company were carried through on the basis of majority. There were no dissenting views by any member of the Board of Directors during the period under review.

I further report that –There are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations.

I further report that during the audit period, the Company has acquired 20% equity stake (in addition to the existing 80%) in its subsidiary company namely, Supriya Elevators Company (India) Limited (“Supriya”) and as a result of which Supriya has become the wholly owned subsidiary of Otis Elevator Company (India) Limited.

For JSP Associates Company Secretary [Firm Regn. No. S2004MH073200]

Jatin Popat Proprietor FCS 4047/ CP No. 6880

Place: MumbaiDate: 10th August, 2017

14


ANNEXURE A TO THE DIRECTORS' REPORTAnnexure I to the Secretarial Audit Report for the nancial year ended 31st March, 2017

To,The MembersOtis Elevator Company (India) LimitedMagnus Tower, 9th Floor,Mind Space, Link RoadMalad (West), Mumbai – 400 064

My secretarial audit report of even date is to be read along with this letter.

1. Maintenance of secretarial records and compliance of the provisions of corporate and other applicable laws, rules, regulations, standards are the responsibility of the management of the Company. My responsibility is to express an opinion on these secretarial records and compliance based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on the test basis to ensure that correct facts are reflected in secretarial records. I believe that the processes and practices followed by me provide a reasonable basis for my opinion.

3. I have not verified the correctness and appropriateness of the financial records and books of accounts of the Company.

4. Wherever required, I have obtained the management representation about the compliance of laws, rules and regulations and happening of events, etc.

For JSP Associates Company Secretary [Firm Regn. No. S2004MH073200]

Jatin Popat Proprietor FCS 4047/ CP No. 6880

Place: MumbaiDate: 10th August, 2017

15

ANNEXURE B TO THE DIRECTORS' REPORT

Information Pursuant to Section 134 (3) (m) of the Companies Act, 2013 Read with Rule 8(3) of the Companies (Accounts)Rules, 2014 for the year ended March 31, 2017.

(A) Conservation of energy –

(i) The steps taken or impact on conservation of energy:

The Company's focus remains on energy conservation through challenging existing processes and finding ways for lower

energy consumption

a) Energy conservation awareness in factory and offices by constant communication and involvement of employees.

b) Promotion of energy saving components in elevators and while erecting the same.

(ii) The steps taken by the Company for utilizing alternate sources of energy: Nil

(iii) The capital investment on energy conservation equipment: Nil

(B) Technology absorption –

(i) The efforts made towards technology absorption:

Research & Development (R&D)

The Company continues to carry out R&D w.r.t. elevator and escalator equipment.

The Company has strengthened R&D engineering team and also invested on Test Tower that provides strong capability for system level evaluation & qualification of the elevator systems.

(ii) The benets derived like product improvement, cost reduction, product development or import substitution:

a) Improvement of overall performance, reliability, service, maintenance and safety of existing products.

b) Cost reduction primarily by the efficient use of indigenous raw materials and extensive value analysis/ value engineering.

c) Continuous optimization exercises to improve products and reduce costs, thereby maintaining market competitiveness.

d) Finding innovative products and technologies which are energy and environment friendly.

e) Improvement in installation method for elevator and improvement of maintenance Practice of elevator

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of the nancial year) – Not Applicable

(a) The details of technology imported;

(b) The year of import;

(c) Whether the technology been fully absorbed;

(d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and

(iv) The expenditure incurred on Research and Development: Revenue expenditure of Rs. 134,126,720 & Capital expenditure Rs.9,068,780.

(C) Foreign exchange earnings and Outgo –

The details of foreign exchange earnings and outgo are given in the Notes to the accounts.


Sebi Joseph Managing Director DIN 05221403 Place: MumbaiDate: August 10, 2017

Suma P N Director DIN 05350680

16


ANNEXURE C TO THE DIRECTORS' REPORT

Pursuant to section 197 (12) of the Companies Act,2013, and Rules 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Ammendment Rules, 2016

A. The name of the top ten Employees Employed throughout the nancial year and was in receipt of remuneration

aggregating not less than Rs. 1,02,00,000 per annum

Notes:

1. The nature of employment of the above mentioned employee is contractual.

2. Remuneration received as shown in the statement includes salary, dearness allowance, other allowances, incentive payment, commission, bonus, house rent allowance,or value of perquisits for company owned accomodation, employer's contribution to provident fund and superannuation scheme, group insuarnce scheme, leave encashment, leave, travel policy, education subsidy, merit award, reimbursement of medical as applicable but excludes provision/ payment under approved voluntary retirement scheme, gratuity provided or paid.

3. The above employee is not a relative of any Director of the Company


Sebi JosephManaging DirectorDIN 05221403

Suma P NDirectorDIN 05350680Place: Mumbai

Date: August 10, 2017

Name Designation Remuneration Date of Age Qualication Experi-(in INR) commencement (years) ence

LastEmployment

of employment in years p y

DesignationIn LastEm lo ment

B. Employed for part of the nancial year and was in receipt of remuneration aggregating not less than Rs. 8,50,000 per month

Name Designation Remuneration Date of Age Qualication Experi- Name of the(in INR) commencement (years) ence Company with

of employment in years which last

DesignationIn LastEmployment

with us employed &designation

Paresh Kariya Director - Business Development, Head-JV's

5,112,304 5th April 2011 51 BE (Mech), Doctor of Business Admin, Master of Mgmt (Mkt)

28 Elecon Engg. Co. Ltd Marketing Manager

Sebi Joseph President Otis India 36,874,681 1st March 2012 55 BE (Mech), MBA Otis SEMA UAE Area Director -Gulf Region

30

Sanjay Sudhakaran Director - Marketing & Sales Strategy and Service Sales

17,832,101 1st March 2014 45 BE (Production) UTC CCS India Mg Director CCS Solutions Divn

24

Dheeraj Vohra Sr. Director- Operations& FOD

17,294,758 1st April 2012 47 BE (Production), MBA UTC India Pvt Ltd Director Operations25

Wilfred Stephen Dsouza Director - North Region 14,526,963 9th November 1987 51 Director - North Region –30 –

Suma P N Director - Human Resources 14,387,872 5th August 2013 48 PG in personnel Mgmt& IR, MBA

UTC India Pvt Ltd28 Director - HR

K Manivannan Director - West Region 13,720,512 25th October 2011 51 Diploma ElectricalEngg., MBA,

Kone Elevators IndiaPvt Ltd

31 Regional Director (East& West)

Mitesh Mittal Director Finance 11,017,788 17th March 2014 39 CA, CPA, CS, MBA CCS BIS India20 CFO - CCS India Solutions Div.

Jitin Wasan Director- Legal 10,944,985 22nd October, 2012 41 LLB, CS, B.com Bharati Airtel Ltd18 VP- Legal & Compliance

Director - North Region 1,314,764 47 25 Zayani Otis Elevator Company

General ManagerAlok Mahajan 2nd January 2013 BE (Electrical)

17

ANNEXURE D TO THE DIRECTORS' REPORT

(Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration ) Rules, 2014.)

FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31, 2017.

II. PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY

Name and Description of main NIC Code of the % to total turnoverSl.No. products / services products / services of the company

1 Manufacture and Maintenance of Elevator/Lifts 2915

*

100%

* Source: As per NIC-2004 available on site of Ministry of Corporate Affairs

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

No. of Companies for which information is being filled 2

S. NAME AND ADDRESS CIN/GLN HOLDING/ % of shares ApplicableNo. OF THE COMPANY SUBSIDIARY held Section

/ ASSOCIATE

1 Supriya Elevator Company U29150TN2008PLC068160 Subsidiary 100.00 2(87) (India) Limited

2. Trio Elevators Company U33103GJ2006PLC048885 Associate 19.90 2(6)(India) Limited

I REGISTRATION & OTHER DETAILS:

i CIN U29150MH1953PLC009158

ii Registration Date October 30, 1953

iii Name of the Company OTIS ELEVATOR CO (INDIA) LTD

iv Category of the Company PUBLIC COMPANY

v Address of the Registered ofce & contact details

Address : MAGNUS TOWERS, 9TH FLOOR, MINDSPACE, LINK ROAD,MALAD WEST

Town / City : MUMBAI - 400064

State : MAHARASHTRA

Country Name : INDIA

Telephone (with STD Code) : 022 - 28449700Fax Number : 022 - 28449791

Email Address : [email protected]

Website, if any: www.otis.com

vi Whether listed company NO

vii Name, Address & contact details of theRegistrar & Transfer Agent, if any.

Name of RTA: LINK INTIME INDIA PRIVATE LIMITED

Address : C - 101, 247 PARK, L.B.S. MARG, VIKHROLI (WEST)

Town / City : MUMBAI – 400083

State : MAHARASHTRA

Telephone : 022-49186270

Fax Number : 022-49106060

Email Address : [email protected]

*

18


ANNEXURE D TO THE DIRECTORS' REPORT

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i. Category-wise Share Holding

FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31,2016

Category of No. of Shares held at the beginningof the year (as on April 1, 2016)

No. of Shares held at the endof the year (as on March 31, 2017)Shareholders

Demat Physical Total % of Total Demat Physical Total % of TotalShares Shares

A. Promoters

(1) Indiana) Individual/ HUF 0 0 0 0% 0 0 0 0% 0%b) Central Govt 0 0 0 0% 0 0 0 0% 0%c) State Govt(s) 0 0 0 0% 0 0 0 0% 0%d) Bodies Corp. 0 0 0 0% 0 0 0 0% 0%e) Banks / FI 0 0 0 0% 0 0 0 0% 0%f) Any other 0 0 0 0% 0 0 0 0% 0%

Sub-Total (A) (1) 0 0 0 0% 0 0 0 0% 0%

(2) Foreigna) NRI - Individuals 0 0 0 0% 0 0 0 0% 0%b) Other - Individuals 0 0 0 0% 0 0 0 0% 0%c) Bodies Corp. 11599819 0 11599819 98.24% 11599819 0 11599819 98.24% 0%d) Banks / FI 0 0 0 0% 0 0 0 0% 0%e) Any other 0 0 0 0% 0 0 0 0% 0%

B. Public Shareholding1. Institutionsa) Mutual Funds 25 0 25 0% 25 0 25 0.00% 0%b) Banks / FI 114 963 1077 0.01% 164 963 1127 0.01% 4.64c) Central Govt 0 0 0 0% 0 0 0 0.00% 0%d) State Govt(s) 0 0 0 0% 0 0 0 0.00% 0%e) Venture Capital Funds 0 0 0 0% 0 0 0 0.00% 0%f) Insurance Companies 50 0 50 0% 0 0 0 0.00% (100)g) FIIs 0 0 0 0% 0 0 0 0.00% 0%h) Foreign Venture Capital Funds 0 0 0 0% 0 0 0 0.00% 0%i) Others (specify) 0 0 0 0% 0 0 0 0.00% 0%

Sub-total (B) (1):- 189 963 1152 0.01% 189 963 1152 0.01% 0%

2. Non-Institutionsa) Bodies Corp.i) Indian 1814 64384624 0.05% 0 7319 0.06% 13.68ii) Overseas 0 0 0 0% 0 0 0 0.00% 0%b) Individualsi) Individual shareholders

holding nominal sharecapital upto Rs. 1 lakh 105445 88965 194410 1.65% 103850 89076 192926 1.63%

ii) Individual shareholdersholding nominal share capitalin excess of Rs 1 lakh 0 0 0 0% 0 0 0 0.0% 0%

% Changeduring

the year

7319

Sub-Total (A) (2) 11599819 0 11599819 98.24% 11599819

11599819 0 11599819 98.24% 11599819

0 11599819 98.24% 0%Total shareholding ofPromoter(A)=(A)(1) +(A)(2) 0 11599819 98.24% 0%

(0.76)

19

ANNEXURE D TO THE DIRECTORS' REPORTFORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31,2016

Shareholding at the Cumulative ShareholdingSl. No. I - Mr.___________________________ beginning of the year during the year

No. of shares % of total No. of shares % of totalshares of the shares of the

company company

At the beginning of the year 0 0% 0 0%

Changes During the Year

Increase

Date Reason for Increase

0 Allotment 0 0% 0 0%0 Bonus 0 0% 0 0%0 Sweat 0 0% 0 0%0 Other 0 0% 0 0%

Decrease

Date Reason for Decrease

0 Transfer 0 0% 0 0%0 Other 0 0% 0 0%

At the End of the year 0 0 0%

iii Change Promoters’ Shareholding : Not Applicable

c) Others (specify)Individuals

Non Domestic Company

Sub-total (B)(2):-Total Public Shareholding(B)=(B)(1)+ (B)(2)

Grand Total (A+B+C) 90484 11808222

9.42

0%

0%

5958 445 6403 0.05%

116027 91224 207251 1.76%

116216 92187 208403 1.77%

11716035 92187 11808222 100% 0%

Category of No. of Shares held at the beginningof the year (as on April 1, 2016)Shareholders

Demat Physical Total % of Total Demat Physical Total % of Total % ChangeShares Shares during

the year

No. of Shares held at the endof the year (as on March 31, 2017)

445 7006

89521 207251

11717738

6561

117730

117919 90484 208403

0.06%

1.75%

1.76%

100

C. Shares held by Custodianfor GDRs & ADRs 0%0 0 0 0.00% 0 0 0 0%

%

ii Shareholding of Promoters

Shareholding at the beginning of the year Share holding at the end of the year

Sl Shareholder’s Name No. of % of total % of Shares No. of % of total % of Shares % changeNo. Shares Shares of Pledged / Shares Shares of Pledged / in share

the encumbered the encumbered holdingcompany to total company to total during

share shares the year

1 United Technologies South 11599819 98.24% 0% 11599819 98.24% 0% N.A.Asia Pacific Pte. Ltd.

TOTAL 1599819 98.24% 0% 11599819 98.24% N.A.0%

20



Shareholding at the Cumulative ShareholdingSl. No. I - Mr.___________________________ beginning of the year during the year

No. of shares % of total No. of shares % of totalshares of the shares of the

company company

At the beginning of the year 0 0% 0 0%

Changes During the Year

Increase

Date Reason for Increase

0 Allotment 0 0% 0 0%0 Bonus 0 0% 0 0%0 Sweat 0 0% 0 0%0 Other 0 0% 0 0%

Decrease

Date Reason for Decrease

0 Transfer 0 0% 0 0%0 Other 0 0% 0 0%

At the End of the year 0 0% 0%

v Shareholding of Directors and Key Managerial Personnel: Not Applicable

iv Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

No. of % of total Increase Decrease No. of % of totalSl. No.: 1 For each of the Top 10 Shareholders shares shares of shares shares of

the thecompany company

Shareholding at thebeginning of the year

Change inShareholding

(Number of Shares)

Shareholding at theend of the year

1. Vinod Dadlani2. Pushpa Jagannath3. RTG Share Broking Limited 4. Arjan Thawardas Hathiramani5. Ashoke Dass6. Yunus Zia7. Mohammad Junaid Farooq8. Nariman Hormusji Daroowala9. Anjana Vasant Jhaveri10. Zainuddin Hatim Popat

6114298829882850239023002200215820862030

0.05%0.03%0.03%0.02%0.02%0.02%0.02%0.02%0.02%0.02%

178000000000

0000000000

6292298829882850239023002200215820862030

0.05%0.03%0.03%0.02%0.02%0.02%0.02%0.02%0.02%0.02%

* The details of holding has been clubbed based on PAN.# % of total Shares of the Company is based on the paid up Capital of the Company at the end of the Year.

21


VI. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment

Indebtedness at the beginning of the Secured Loans Unsecured Deposits Totalnancial year excluding Loans Indebtness

deposits

i) Principal Amount N.A. N.A. N.A. N.A.

ii) Interest due but not paid N.A. N.A. N.A. N.A.

iii) Interest accured but not due N.A. N.A. N.A. N.A.

Total (i+ii+iii) N.A. N.A. N.A. N.A.

Change in Indebtedness during the Secured Loans Unsecured Deposits Totalnancial year excluding Loans Indebtness

deposits

* Addition N.A. N.A. N.A. N.A.

* Reduction N.A. N.A. N.A. N.A.

Net Change N.A. N.A. N.A. N.A.

Indebtedness at the end of the Secured Loans Unsecured Deposits Totalnancial year excluding Loans Indebtness

deposits

i) Principal Amount N.A. N.A. N.A. N.A.ii) Interest due but not paid N.A. N.A. N.A. N.A.iii) Interest accured but not due N.A. N.A. N.A. N.A.

Total (i+ii+iii) N.A. N.A. N.A. N.A.

VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amount in Rs.)

Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total

no. Sebi Joseph Amount

Managing Director

1 Gross salary

(a) Salary as per provisions containedin 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 section17(3) Income- tax Act, 1961

2 Stock Option

3 Sweat Equity

4 Commission- as % of profit- others, specify

5 Others, please specify

Total (A)

29,729,816

5,533,350

-

1,611,515

-

- -

-

36,874,681

-

29,729,816

5,533,350

-

1,611,515

-

- -

-

36,874,681

-

22



VIII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Nil

Type Section of the Brief Details of Penalty /Punishment/ Compounding

fees imposed

Authority Appeal made,Companies Act Description [RD / NCLT / COURT] if any (give Details)

A. COMPANY

Penalty - - - - -

Punishment - - - - -

Compounding - - - - -

B. DIRECTORS

Penalty - - - - -



C. OTHER OFFICERS IN DEFAULT

Penalty - - - - -



B. Remuneration to other Directors:

Sl. Particulars of Remuneration Name of Directors Total Amount

no. Mr. P. S. Dasgupta

1. Independent DirectorsFee for attending board &committee meetingsCommissionOthers, please specifyTotal (1)

2 Other Non-Executive Directors

Fee for attending boardcommittee meetingsCommissionOthers, please specifyTotal (2)Total (B)=(1+2)Total Managerial Remuneration

(Amount in Rs.)

1,40,000

6,00,000 -

7,40,000

-

- - -

7,40,000 -

1,60,000

- - -

1,60,000

- -

- - - - - -

1,60,000 -

Mr. Anil Vaish

3,00,000

6,00,000

9,00,000

9,00,000

C. Remuneration To Key Managerial Personnel Other Than MD/Manager/WTD

Sl. Particulars of Remuneration Key Managerial Personnel

no. Sanu Kapoor Mitesh Mittal TotalCompany Secretary CFO

1 Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 2,529,096

1,84,575

- - -

- - -

- - -

- - - - - - - - -

27,13,671

(b) Value of perquisites u/s 17(2)Income-tax Act, 1961

(c) Profits in lieu of salary undersection 17(3) Income-tax Act, 1961

2 Stock Option

3 Sweat Equity

4 Commission - as % of profit - others, specify…

5 Others, please specify

Total

(Amount in Rs.)

1,07,10,564

3,07,224

1,10,17,788

1,32,39,660

4,91,799

1,37,31,459

23

ANNEXURE E TO THE DIRECTORS' REPORTANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE FINANCIAL YEAR 2016-2017.

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 programs.Otis Elevator Company (India) Limited has been supporting charitable and social causes in the communities. In line with the requirements of Section 135 of the Companies Act, the Company has instituted a CSR Policy, duly approved by the Board. The policy highlights the key areas of focus for the Company. The present CSR initiatives focus is on promoting education a recognised activity mentioned in Schedule VII of the Companies Act, 2013. The Company’s CSR policy is available on the Company’s website at http://www.otis.com/site/in/pages/CSR_Policy.aspx?menuID=6

2. The Composition of CSR Committee Mr. Sebi Joseph – Chairman & Managing Director. Mr. P S Dasgupta – Independent Director Ms. Suma P N – Director

3. Average net prot of the Company for last three nancial years Rs. 17,960 lakhs

4. Prescribed CSR Expenditure (two percent of the amount as in item 3 above) Rs. 360 lakhs

5. Details of CSR spent during the nancial year. (a) Total amount to be spent for the financial year: Rs. 360 lakhs (b) Total amount spent for the Financial Year: Rs. 361 lakhs (c) Amount unspent : Nil (d) Manner in which the amount spent during the financial year is detailed below6.

6. In case the Company has failed to spend the two percent of the average net prot of the last three nancial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board report:

Not Applicable

7. A responsibility statement of CSR Committee that the implementation and monitoring of CSR Policy is in compliance with the CSR objectives and Policy of the Company:

The CSR Committee declares that the implementation and monitoring of our CSR Policy is in compliance with the CSR objectives and Policy of the Company. The projects have been considered and undertaken with the best of our intentions to contribute to the greater good of the society. In line with the requirements of the Companies Act, 2013 we have also instituted monitoring mechanisms to ensure the projects are implemented as planned.

Sebi Joseph (DIN: 05221403)

Managing Director & Chairman of CSR CommitteePlace: MumbaiDate: August 10, 2017

Sr. CSR Project / Sector in Projects or program Amount Amount Spent Cumulative Amount spent:No. Activity which the (1) Local area or other outlay Sub-heads: expenditure Direct or

project is (2) Specify the State (budget) 1. Direct expenditure on up to the Implementingcovered District where projects or project or projects or programs reporting Agency(Schedule VII) programs was undertaken programs 2. Overheads period

(1) (2) (3) (4) (5) (6) (7) (8)

1 EducationProject “Shine”

PromotingEducation

Trichur, Rourkela, Raipur, Pune, Pondicherry, nagapattinam, Kolkatta, Jaipur, Hyderabad, Guwahati, Greenfields, Cochin, Chennai, Bhuj, Bhopal, Bawana, Bangalore, Alibaug.

250 Direct Expenditure 876 NGO -“ SOSChildren'sVillages of India”

Bangalore, Belgaum, Delhi, Hyderabad & Jharkhand.

2 Skilling Project PromotingEducation

48 Direct Expenditure 48 NGO -“SamarthanamTrust forDisabled”

3 EducationProject

PromotingEducation

Tamil Nadu, Karnataka, Kerala, Telangana, Andra Pradesh, West Bengal, Puduchery Union Territory.

56 Direct Expenditure 56 NGO- “MotherTeresaCharitable Trust”

4 IncidentalExpenses

IncidentalExpenses

Local 7 Overheads 12 Direct

361 992TOTAL

(Rs. in lakhs)

24


ANNEXURE F TO THE DIRECTORS' REPORTFORM AOC-2

[Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act,2013 and Rules 8(2) of the Companies (Accounts)Rules, 2014.]

Form for 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 arm's length transaction under third proviso thereto: N.A.

1) Details of contracts or arrangements or transactions not at Arm's length basis: N.A.

a) Name(s) of the related party & nature of relationship : N.A.

b) Nature of contracts/arrangements/transactions : N.A.

c) Duration of the contracts/arrangements/transactions : N.A.

d) Salient terms of the contracts or arrangements or transaction including the value, if any : N.A.

e) Justification for entering into such contracts or arrangements or transactions : N.A.

f) Date(s) of approval by the Board : N.A.

g) Amount paid as advances, if any : N.A.

h) Date on which the special resolution was passed in General meeting as required under first proviso to section 188 : N.A.

2) Details of material contracts or arrangements or transactions at arm's length basis: N.A.

a) Name(s) of the related party & nature of relationship : N.A.

b) Nature of contracts/arrangements/transactions : N.A.

c) Duration of the contracts/arrangements/transactions : N.A.

d) Salient terms of the contracts or arrangements or transaction including the value, if any : N.A.

e) Date(s) of approval by the Board, if any : N.A.

f) Amount paid as advances, if any : N.A.

*** The transactions were entered into by the Company in its ordinary course of business & at arm's length basis. Materiality threshold is as prescribed in Rule 15(3) of the Companies (Meeting of Board and it Powers) Second amendment Rules, 2014.

Place: MumbaiDate : August 10, 2017



Suma P NDirectorDIN 05350680

25

INDEPENDENT AUDITORS' REPORTTO THE MEMBERS OF OTIS ELEVATOR COMPANY (INDIA) LIMITED

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying standalone financial statements of Otis Elevator Company (India) Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2017, 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 ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Ind AS Financial Statements

2. 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 standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

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

4. We have taken into account the provisions of the Act and the Rules made thereunder including 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.

5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view, in order to design audi t procedures that are appropr ia te 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 standalone Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 principles generally accepted in India, of the state of affairs of the Company as at March 31, 2017, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Other Matter

9. The financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015, prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated August 10, 2016 and August 19, 2015, respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor’s Report) Order, 2016, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (“the Order”), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.

26


INDEPENDENT AUDITORS' REPORT

11. 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) 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 (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

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

f) 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.

g) 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 knowledge and belief and according to the information and explanations given to us:

(I) The Company has disclosed the impact of pending litigations as at March 31, 2017 on its financial position in its standalone Ind AS financial statements – Refer Notes 20 and 46 to the standalone Ind AS financial statements.

(ii) The Company has made provision as at March 31, 2017, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts - Refer Note 26 to the standalone Ind AS financial statements. The Company did not have long term derivative contracts as at March 31, 2017.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017.

(iv) The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management – Refer Note 14 to the standalone Ind AS financial statements.

For Price Waterhouse & Co Bangalore LLP Firm Registration Number: 007567S/S-200012Chartered Accountants

Asha RamanathanPartnerMembership Number: 202660

Place: MumbaiDate: August 17, 2017

27

ANNEXURE A TO INDEPENDENT AUDITORS' REPORTReferred to in paragraph 11(f) of the Independent Auditors' Report of even date to the members of Otis ElevatorCompany (India) Limited on the standalone Ind AS nancial statements for the year ended March 31, 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act1. We have audited the internal financial controls over

financial reporting of Otis Elevator Company (India) Limited (“the Company”) as of March 31, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls2. 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 internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Char tered Accountants of India ( ICAI). 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' Responsibility3. 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”) and the Standards on Auditing under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. 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.

4. 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.

5. 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 Reporting6. 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 Reporting7. 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.

Opinion8. In our opinion, the Company has, in all material respects,

an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, 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.



Place: Mumbai Date: August 17, 2017

28


ANNEXURE B TO INDEPENDENT AUDITORS’ REPORTReferred to in paragraph 10 of the Independent Auditors’ Report of even date to the members of Otis ElevatorCompany (India) Limited on the standalone Ind AS nancial statements as of and for the year ended March 31, 2017

i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

(c) The title deeds of immovable properties, as disclosed in Note 4 on Property Plant and Equipment to the financial statements, are held in the name of the Company.

ii. The physical verification of inventory [excluding

stocks with third parties and stocks in transit] have been conducted at reasonable intervals by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

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. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and 186

of the Companies Act, 2013 in respect of the loans and investments made. The Company has not provided any guarantees or security to the parties covered under Sections 185 and 186.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.

vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, employees’ state insurance, income tax, service tax, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory dues, including sales tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of duty of custom, entry tax and cess which have not been deposited on account of any dispute. The particulars of dues of income tax, sales tax, duty of excise, service tax and value added tax as at March 31, 2017 which have not been deposited on account of a dispute, are as follows:

29


Sr. Name of the Statute Nature of the Dues Amount under Forum where

No. dispute not yet dispute is pending

deposited

(Rs. in lakhs)

1. The Central Excise Act, 1944 2,079

1,036

1,356

20

Sub total 4,491

2.

30,818

Sub total 31,643

3.

4.

*

23,877

Commissioner of Incometax Appeals

Customs, Excise andService Tax Appellate Tribunal, Mumbai

First Appellate Authorities

Sub total *

Excise duty liability for the period July 2000 to March 2004 and April 2004 to March 2005

Excise duty liability for the period March 1993 to October 1995

Excise duty liability for the period March 1987 to February 1995, April 1996 to December 2003 and November 2008 to November 2009

Excise duty liability for the period November 1994 to August 1995

The Supreme Courtof India

The High Court of Mumbai

Customs, Excise andService Tax Appellate Tribunal, Mumbai

First AppellateAuthorities

Sales Tax / Value Added TaxAs per the statutes applicable in the following states – Haryana, West Bengal, Delhi, Maharashtra, Goa, Rajasthan, Punjab, Jharkhand, Uttar Pradesh , Uttaranchal, Kerala, Tamil Nadu

Sales Tax in dispute for the financial years 2002-2003 to 2004-2005

Sales Tax in dispute for the financial years 1995-1996, 1998-1999 to 2013-2014 and 2015-2016

825 Sales Tax Appellate Tribunal of various states

Assessing Authorities and First Appellate Authorities of various states

Demand in respect ofAssessment Year 2011-2012

Service tax in dispute for theyears 2007-08 to 2014-2015

Service tax in dispute for theyear 2007-2008 to 2009-2010

Income -tax Act, 1961

Service TaxThe Finance Act, 1994

278

Sub total 24,155

Grand Total 60,289

* Amount is below the rounding off norms adopted by the Company

30



viii. As the Company neither has any loans or borrowings from any financial institution or bank or Government, nor has it issued any debentures as at the balance sheet date, the provisions of Clause 3(viii) of the Order are not applicable to the Company.

ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.

xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such

related party transactions have been disclosed in the financial statements as required under Accounting Standard (AS) 18, Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.

xv. The Company has not entered into any non-cash transactions within the meaning of Section 192 of the Act with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.



Place: Mumbai Date: August 17, 2017

31

OTIS ELEVATOR COMPANY (INDIA) LIMITEDStandalone Balance Sheet as at March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

The above Standalone Balance sheet should be read in conjunction with the accompanying notes. This is the Standalone Balance Sheet referred to in our report of even date.

For Price Waterhouse & Co Bangalore LLPFirm Registration No. 007567S/S-200012Chartered Accountants

Asha RamanathanPartnerMembership No. 202660



Sebi Joseph Managing DirectorDIN 05221403

Mitesh Mittal Chief Financial Officer Place: Mumbai Date: August 10, 2017



Notes As at March 31, 2017

As at March 31, 2016

As at April 1, 2015

ASSETSNon-current assetsProperty, plant and equipment 4 6,331 7,152 7,744 Capital work-in-progress 4 26 - 285

Other intangible assets 4 - - -Investments 5 144

144

558

Financial assets(i) Loans 6(a) 60,459

14,159

10,246

(ii) Trade receivables 13(a) 47

20

20

(iii) Other financial assets 7 887

743

1,101

Deferred tax assets (net) 8 12,566

11,504

11,027

Non-current tax assets (net) 9(a) 5,854

3,421

2,366

Other non-current assets 10 6,197

6,800

5,434

Total non current assets 92,511

43,943

38,781

Current assetsInventories 11 10,362

8,218

7,842

Financial assets(i) Loans 6(b) 12,639

135

261 (ii) Contract work-in-progress 12 924

1,271

777

(iii) Trade receivables 13(b) 32,604

32,252

27,983

(iv) Cash and cash equivalents 14 51,751

107,025

103,714

(v) Bank balances other than (iv) above 15 64

46

20

(vi) Other financial assets 16 3,728

2,673

2,428

Current tax assets (Net) 9(b) 766

- -Other current assets 17 1,478

1,513

1,426

Total current assets 114,316

153,133

144,451

TOTAL ASSETS 206,827 197,076 183,232

EQUITY AND LIABILITIES

EQUITYEquity share capital 18 1,181

1,181 1,181Other equity 19 93,771

92,797

88,364

Total equity 94,952

93,978

89,545

LIABILITIESNon-current liabilitiesProvisions 20 15,614

18,590

19,080

Employee benefit obligations 21(a) - 50

919

Other non-current liabilities 22 1,027

970 929Total non-current liabilities 16,641

19,610 20,928

Current liabilitiesFinancial liabilities

(i) Trade payables 23 20,488

16,832

13,398

(ii) Other financial liabilities 24 487

225 649Provisions 25 16,984

12,614 10,024Employee benefit obligations 21(b) 3,064

3,185 2,543Liabilities for current tax (net) 26 - - 3,251

Other current liabilities 27 54,211

50,632

42,894

Total current liabilities 95,234

83,488

72,759

Total liabilities 111,875

103,098

93,687

TOTAL EQUITY AND LIABILITIES 206,827

197,076

183,232

32

Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITEDStandalone Statement of Prot and Loss for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

The above Standalone Statement of Profit and Loss should be read in conjunction with the accompanying notes.

This is the Standalone Statement of Profit and Loss referred to in our report of even date.









Year Ended March 31, 2017

Year Ended March 31, 2016

Revenue

Revenue from operationsOther incomeTotal income

Expenses

Cost of materials consumedChanges in inventories of work-in-progressExcise dutyEmployee benefits expensesInterest expenseDepreciation and amortization expensesOther expensesTotal expenses

Prot before exceptional items and tax

Exceptional items

Prot before tax

Income tax expense1. Current tax2. Deferred tax3. Adjustment of tax for earlier years

28

29

30

31

32

33

34

35

41

43

Prot for the year

Other comprehensive incomeItems that will not be reclassified to Statement of Profit and Loss:

Actuarial gains / (loss) aring from remeasurements of post-employment benefit obligations

Deferred tax income / (expense) related to these items

Other comprehensive income for the year, net of tax

Total comprehensive income for the year

Earnings per Equity Share - (Basic and Diluted) [Refer Notes 3(n) and 36][Nominal value of share Rs. 10 each] (Previous Year - Rs. 10 each)

127,035

11,188

138,223

57,667

(126)

2,841

27,178

47

1,278

27,588

116,473

21,750

(144)

21,606

8,800

(1,128)

(29)

7,643

13,963

190

(66)

124

14,087

118.24

106,85510,082

116,937

42,78544

2,272

25,24573

1,373

26,01697,808

19,129

(683)

18,446

7,420

(393)

(777)

6,250

12,196

(245)

85

(160)

12,036

103.28

Notes

33

OTIS ELEVATOR COMPANY (INDIA) LIMITEDStandalone Statement of cash ows for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars For the year ended

March 31, 2017 For the year ended

March 31, 2016

Adjustments for :

Interest on :

Change in operating assets and liabilities

(Decrease) in Trade receiveables - non current (27)

Cash ow from operating activities:Profit Before Tax 21,606 18,446

Depreciation and Amortisation expense 1,278 1,373

Provision for trade receivables and other financial assets 427 2,035Provision for non-financial assets 113 22Unrealised Loss on fluctuation in Foreign exchange (net) 90 102Bad trade receivables and other financial assets written off 448 277Interest expense on delayed payments of taxes - 52Unwinding of Interest on Product Upgradation Expense Provision 47 21

- Deposits with Bank (6,834) (7,975)- Income Tax Refund (189) (283)- Loans to related parties (2,755) (1,379)- Others (14) (10)Profit on sale / disposal of property, plant and equipment (Net) (50) (33)Provision for Product Upgradation 444 2,112

Provision for contingency / write back of provision for contingency (Net) (898) 147

Unwinding of Interest on deposits/ retention money/ employee loans (103) (62)

Share based payments to Employees 389 214Exceptional items (Refer Note 41) 144 683

Operating Prot before working capital changes 14,143 15,742

(Decrease) in Trade receiveables - current (1,226) (6,581)

(Decrease) in Inventories (2,144) (376)

Increase in Trade Payables 3,566 3,331

Increase in other current financial assets 329 244

Increase / (Decrease) in other non-current assets 521 (1,588)

Increase / (Decrease) in other current assets 35 (87)

(Decrease) in long term provisions (3,024) (511)

Increase in short term provisions 4,824 330

(Decrease) in employee benefit obligations (non-current) (50) (869)

Increase in employee benefit obligations (current) 69 398

Increase / (Decrease) in other current financial liabilities 136 (331)

Increase in non-current liabilities 57 41

(Decrease) / Increase in other non current financial assets (144) 99

Increase in other current liabilities 3,578 7,739

Increase / (Decrease) in Contract work-in-progress 347 (494)

(Increase) in Other bank balances (17) (26)

Operating Prot after Working Capital changes 20,973 17,061

Taxes paid (Net) (11,781) (10,718)

Net cash generated from operating activities (A) 9,192 6,343

-

34


This is the Standalone Statement of Cash Flows referred to in our report of even date.









OTIS ELEVATOR COMPANY (INDIA) LIMITEDStandalone Statement of cash ows for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

Notes: 1.The above Standalone Statement of Cash Flows has been prepared under "Indirect Method" set out in Accounting Standard (Ind AS) 7

on the Statement of Cash Flow as notified under Companies (Accounts) Rules, 2015. 2.The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this note. (Refer

Note 51).

3.The above Standalone Statement of Cash Flows should be read in conjunction with the accompanying notes.

Cash and Cash Equivalents comprise :

Temporary overdrat with Banks (27)

Cash flow from financing activities

Dividend paid (6,474)(11,201)

Dividend Distribution Tax paid (1,322)(2,284)

Net cash utilised for Financing Activities ( C ) (7,796)(13,485)

Net (Decrease) / Increase in Cash and Cash Equivalents (A+B+C) 3,284(55,247)

Cash and Cash Equivalents at the Beginning of the Year 103,714 106,998

Cash and Cash Equivalents at the End of the Year 106,998 51,751

Cash on hand 2 1 Cheques on hand 404 86

Bank Balances: - In Current accounts 571 2,762

- In Demand Deposits 106,048 48,902

106,998 51,751

Cash flow from investing activities

(416)Purchase of Fixed Assets (463)

95Proceeds from Sale of Fixed Assets 61(150)Purchase of Investments -

(58,805)Loans Given (Net of repayment) (3,787)

8,322Interest received 8,926

(50,954)Net Cash (Utilised) for / Generated from Investing Activities (B) 4,737

-

Particulars For the year ended

March 31, 2017 For the year ended

March 31, 2016

35

OTIS ELEVATOR COMPANY (INDIA) LIMITEDStandalone Statement of changes in equity (SOCIE) for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

The above Standalone Statement of changes in equity should be read in conjunction with the accompanying notes.

As per our report of even date









A. Equity Share Capital (Refer Note 18)

Particulars Amount

Balance as at April 1, 2015 1,181

Changes in equity share capital -

Balance as at March 31, 2016 1,181

Changes in equity share capital -

Balance as at March 31, 2017 1,181

B. Other equity (Refer Note 19)

Other Equity

Capitalredemption

reserve

Generalreserve

Retainedearnings

Equity contribution from Ultimate Parent - Share based payments

Balance as at April 1, 2015 73 1,759 86,410 88,364

Profit for the year - - 12,196 12,196

Other comprehensive income - - (160) (160)

Total comprehensive income for the year - - 12,036 12,036

Dividends paid - - (6,495) (6,495)

Dividend distribution tax - - (1,322) (1,322)

Additions towards share based payments - - - 214

Balance as at March 31, 2016 73 1,759 90,629

122

-

-

-

-

-

214

336 92,797

Particulars Total

Reserves and Surplus

Other Equity

Capitalredemption

reserve

Generalreserve

Retainedearnings

Equity contribution from Ultimate Parent - Share based payments

Balance as at April 1, 2016 73 1,759 90,629 92,797

Profit for the year - - 13,963 13,963

Other comprehensive income - - 124

Total comprehensive income for the year - - 14,087 14,087

Dividends paid - - (11,218) (11,218)

Dividend distribution tax - - (2,284) (2,284)

Additions towards share based payments - - - 389

Balance as at March 31, 2017 73 1,759 91,214

336

-

-

-

-

-

389

725 93,771

Particulars Total


124

36


OTIS ELEVATOR COMPANY (INDIA) LIMITEDNotes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

1 Background of the Company

Otis Elevator Company (India) Limited ("the Company") was incorporated on October 30, 1953 under the provisions of the Companies Act, 1956 (the "Act"). The Company is engaged inter-alia in the business of manufacture, erection, installation and maintenance of elevators, escalators and travolators.

The registered office and principal place of business of the Company is 9th Floor, Magnus Tower, Mindspace, Link Road, Malad (West), Mumbai - 400064.

2 Basis of preparation

(a) Statement of compliance

The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements up to year ended March 31, 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act. These financial statements are the first financial statements of the Company under Ind AS. Refer note 51 for an explanation of how the transition from previously applicable Indian GAAP (hereinafter referred to as 'previous GAAP') to Ind AS has affected the Company’s financial position, financial performance and cash flows.

(b) Historical cost convention

These financial statements have been prepared on the historical cost basis except for the following:(i) Certain financial assets and liabilities (including derivative instruments) measured at fair value(ii) Defined benefit plans - plan assets measured at fair value and(iii) Share based payments

Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. This note provides an overview of the areas that involved higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are: (I) Estimation of defined benefit obligations (Refer Notes 21(a), 21(b) and 32) (ii) Estimation of current tax expense and receivables/payables (Refer Notes 9(a), 9(b), 26 and 43) (iii) Impairment of Investments (Refer Note 5) (iv) Impairment of trade receivables and other receivables (Refer Note 6(b), 7, 10, 13(a), 13(b), 16 and 17) (v) Recognition and measurement of provisions and contingencies (Refer Notes 20 and 25)

(d) Current vs non-current classication

Operating cycle All 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 III to the Companies Act, 2013. Based on the nature of business and the time between the supply of products/rendering of services 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.

3 Signicant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing the opening Ind AS balance sheet at April 1, 2015 for the purposes of the transition to Ind AS, unless otherwise indicated.

37

(a) Foreign currency translations

(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). The standalone financial statements are presented in Indian rupee (Rs.), which is Company’s functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are translated to the functional currency of the Company at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate prevailing on that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exhange rate are generally recongised in profit or loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

(b) F inancial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial Assets

A financial asset is (i) Cash; (ii) a contractual right to receive cash or another financial asset; to exchange financial assets or financial liabilities under potentially favorable conditions; (iii) or a contract that will or may be settled in the entity's own equity instruments and a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.

Recognition, measurement and classication A financial asset is recognised in the balance sheet only when the Company becomes party to the contractual provisions to the instrument. All financial assets are measured initially at its fair value plus, in the case of a financial asset not at fair value through statement of profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset. Transaction costs of financial assets carried at fair value through statement of profit or loss are expensed to profit or loss. The Company classifies its financial assets into a) financial assets measured at amortised cost, and b) financial assets measured at fair value (either through other comprehensive income or through profit or loss). Management determines the classification of its financial assets at the time of initial recognition or, where applicable, at the time of reclassification. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. (1) Financial assets measured at amortised cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a financial asset that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method. A financial asset is classified at amortised costs if it is held within a business model whose objective is to a) hold financial asset in order to collect contractual cash flows and b) the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial measurement, such financial assets are subsequently measured at amortised cost using effective interest rate method (EIR). Amortised cost is arrived at after taking into consideration any discount or fees or costs that are an integral part of the EIR. The amortisation of such interests forms part of finance income in the statement of profit and loss. Any impairment loss arising from these assets are recognised in the Statement of Profit and Loss.


38


(2) Financial assets measured at fair value through other comprehensive income (FVTOCI) A financial asset is classified at fair value through other comprehensive income if it is held within a business model whose objective is to a) hold financial asset in order to collect contractual cash flows and for selling the financial assets and b) the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment of gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included in other income using the effective interest rate method. (3) Financial assets measured at fair value through prot and loss (FVTPL) Any asset which do not meet the criteria for classification as at amortised cost or as FVTOCI, is classified as FVTPL. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in the Statement of Profit and Loss.

(ii) Financial Liabilities

A financial liability is (i) a contractual obligation to deliver cash or another financial asset to another entity; or to exchange financial instruments under potentially unfavorable conditions; (ii) or a contract that will or may be settled in the entity's own equity instruments and is a non-derivative for which the entity is or may be obliged to deliver a variable number of its own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.

Recognition, measurement and classication A financial liability is recognised in the balance sheet only when the Company becomes party to the contractual provisions to the instrument.Financial liabilities are classified as either held at a) fair value through profit or loss, or b) at amortised cost. Management determines the classification of its financial liabilities at the time of initial recognition or, where applicable, at the time of reclassification. After initial measurement, such financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

(iii) De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership is transferred. A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or expires.

(iv) Impairment of nancial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the financial assets. The Company follows ‘simplified approach’ permitted by Ind AS 109, Financial instruments, for recognition of impairment loss allowance on Trade Receivables which requires expected lifetime losses to be recognised from initial recognition of the receivables. At the time of recognition of impairment loss on other financial assets, the Company determines that whether there has been a significant increase in the credit risk since its initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the financial instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date. ECL impairment loss allowance/ reversal is recognized during the period as expense/ income in the Statement of Profit and Loss. In case of financial assets measured as at amortised cost, ECL is presented as an allowance. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount but is disclosed as net carrying amount.


39

(v) Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at fair value through Profit or Loss.

(vi) Offsetting nancial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Inventories

Inventories are valued at the lower of cost and net realisable value.

Cost of components for service and repair inventories are computed on weighted average cost basis. Cost for components of elevators includes materials, labour and manufacturing overheads and other costs incurred in bringing the inventories to their present location, and is determined using standard cost method that approximates actual cost.

(d) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are inclusive of excise duty and net of taxes collected on behalf of the third parties. Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from construction and repair contracts is recognised on Percentage of Completion Method with reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion of a contract is determined as the proportion that contract costs incurred for work performed up to the year end bear to the estimated total contract costs. However, provisions are made for the entire loss on a contract irrespective of the amount of work done. When two or more revenue generating activities or deliverables are provided under a single arrangement, each deliverable is considered to be a separate unit of account and accounted for separately. The allocation of consideration from a revenue arrangement to its separate units of account is based on the relative fair value of each unit. If the fair value of the delivered item is not reliably measurable, then revenue is allocated based on the difference between the total arrangement consideration and the fair value of the undelivered item. Under contracts for supplies and installation, the Company provides free service / maintenance to its customers. The consideration received is allocated between the equipment sale and service relative to the fair value of free service offered. The fair value of the free service is deferred and recognised as revenue on pro-rata basis over the contract period.

Revenue from maintaince contracts is recognised on pro-rata basis over the contract period. Revenue from the sale of raw materials and components, and sale of scrap are recognised when the significant risks and rewards of ownership of the goods have passed to the customer. Price Adjustment Claims, if any, are recognised as income after considering reasonable certainty of collection.

(e) Other Income

Interest income from financial asset is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial asset (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably. Recoveries from Group Companies include recoveries towards common facilities/ resources and other support provided to such parties which is recognised as per terms of agreement.


40


(f) Property, plant and equipment

Recognition and measurement Freehold land is stated at cost. All other items of property, plant and equipment are measured at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. Depreciation methods, estimated useful lives and residual value Depreciation on tangible assets is provided on written down value method at the rates and in the manner prescribed under Schedule II of the Companies Act, 2013. Depreciation is provided on pro-rata basis with reference to the month of addition/installation/ disposal of assets, except in case of assets costing Rs. 5,000 or less, which are depreciated fully in the year of acquisition. The Company has estimated the useful lives of assets equivalent to the useful lives prescribed in Schedule II to the Companies Act, 2013 as below:

The residual values are not more than 5% of the original cost of the asset. Depreciation methods, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is higher than its estimated recoverable amount. Gains or losses arising from the retirement or disposal of a tangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss. Leaseholds improvements are amortised over the lease period on Straight line basis.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

(g) Intangible assets

Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.

Softwares purchased are amortised over a period of 5 years on straight line basis. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss. Research and Development: Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are also charged to the Statement of Profit and Loss unless a product’s technical feasibility and other criteria set out in Ind AS 38 – ‘Intangible assets’ have been established, in which case such expenditure is capitalised. Transition to Ind AS On transition to Ind AS, the Company has elected to continue with the carrying value of all of intangible assets recognised as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.


Particulars Useful livesBuildings 30 yearsPlant and equipments 15 yearsFurniture and fixtures 10 yearsElectrical installations 10 yearsComputers 3 yearsVehicles 8 - 10 yearsOffice equipments 5 years

41

(h) Impairment of non-nancial assets

Non-Financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

(i) Leases

Operating leaseAs a Lessee, lease in which significant portion of risks and rewards of ownership are not transferred to the Company are classified as operating lease.

Payments made under operating leases are charged to Statement of Profit and Loss on a straight-line basis over the lease term unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

(j) Employee benets

I) Short term obligation Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Termination benefits are recognised as an expense as and when incurred. ii) Other long-term employee benet obligations Compensated Absences The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur. iii) Post employment obligations a) Dened contribution plans A defined contribution plan is a post-employment plan under which an entity pays fixed contributions and will have no legal or constructive obligation to pay further amounts.The Company contributes to Superannuation Fund, Employee’s State Insurance Fund and Employees Deposit Linked Insurance scheme, and has no further obligation beyond making its contribution. The Company’s contributions to the above funds are charged to the Statement of Profit and Loss.

b) Dened benet plans Provident Fund Contributions to Provident Fund and Employee’s Pension Scheme 1995 are made to Trust administered by the Company. The Company's liability is actuarially determined (using the Project Unit Credit method) at the end of the year and any shortfall in the fund size maintained by the Trust set up by the Company, is additionally provided for. Gratuity The Company provide 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 of vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees' salary and the tenure of employment. The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuary using the projected unit credit method.


42


The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost. iv) Termination Benets Termination benefits in the nature of voluntary separation plan are recognised in the Statement of Profit and Loss as and when incurred. v) Share based payments Share based compensation benefits are provided to employees by the Ultimate Parent Company without any cross charge.

The fair value of of options granted is recognised as an employee benefit expenses with a corresponding increase in equity as contribution from the parent.

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the Company revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of revision to original estimates, if any, in the profit or loss, with a corresponding adjustment to equity.

(k) Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates items recognised directly in equity or in other comprehensive income. Current tax The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the country where the company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Deferred tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.


43

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

(l) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or contructive 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 a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value, wherever company can estimate the time of settlement, of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The increase in the provisions due to passage of time is recognised as interest expense. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurance or non-occurance of one or more uncertain future events not wholly with in 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 can not be made.

Wherer the likelihood of outflow of resources is remote, no provision or disclosure as specified in Ind AS -37 - "Provision, contigent liablities and contigent assets" is made.

(m) Segment reporting

The Chief Operational Decision Maker (CODM) monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments are reported in a manner consistent with the internal reporting provided to the CODM.

(n) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

(o) Cash and cash equivalents

For the purpose of presentation in the Statement of Cashflows, Cash and cash equivalent comprise of cash/ cheques on hand and at banks including short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value, and bank overdrafts.

(p) Investments

Investments in subsidiary and associate are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiary / associate, the difference between net disposal proceeds and the carrying amounts are recognized in the Statement of Profit and Loss. Upon first-time adoption of Ind AS, the Company has elected to measure its investments in subsidiary and associate at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., April 1, 2015.

(q) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(r) Rounding of amounts All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees in lakhs as per the requirement of Schedule III, unless otherwise stated.


44


OTIS ELEVATOR COMPANY (INDIA) LIMITEDNotes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

4 Property, Plant and Equipment [Refer Notes 3(f) and (h)]

Description

Gross Block Depreciation Net Block


Freehold land Buildings Leasehold improvements Plant and equipment Furniture and fixtures Electrical installations Computers Vehicles Office equipments Total 8,518

Capital work-in-progress

Additions DeductionsAs at

March 31, 2017As at

March 31, 2016 For the

year Deductions As at

March 31, 2017 As at

March 31, 2017

250 4,394

449 2,670

141 297

88 49

180

- 76 13

313 31

- 8 5

56

- 25

1 - - -

17 16

1

250 4,445

461 2,983

172 297

79 38

235

- 429 132 548

48 76 34 13 86

- 404 228 467

37 56 16

9 61

- 5 1 - - - 3 6 *

- 828 359

1,015 85

132 47 16

147

250 3,617

102 1,968

87 165

32 22 88

502 60 8,960 1,366 1,278 15 2,629 6,331

- 528 502 26 - - 26- -

Description


As at April 1, 2015

Freehold land Buildings Leasehold improvements Plant and equipment Furniture and fixtures Electrical installations Computers Vehicles Office equipments Total 7,744



March 31, 2016As at

April 1, 2015 For the

year DeductionsAs at


March 31, 2016

250 4,252

219 2,368

106 297

60 44

148

- 149 230 313

36 *

32 13 36

- 7 -

11 1 - 4 8 4

250 4,394

449 2,670

141 297

88 49

180

- - - - - - - - -

- 429 132 550

48 76 34 16 88

- * - 2 * - * 3 2

- 429 132 548

48 76 34 13 86

250 3,965

317 2,122

93 221

54 36 94

809 35 8,518 - 1,373 7 1,366 7,152

285 524 809 - -- - - -

Intangible assets [Refer Notes 3(g) and (h)]

Description

Gross Block Amortisation Net Block

As at April 1, 2016

Software


March 31, 2017As at




March 31, 2016

- - - - - - - - - - - -

Description


As at April 1, 2015

Software


March 31, 2016As at



March 31, 2016

- - - - - - - - - -

Note: The Company has availed the deemed cost exemption in relation to the property plant and equipment and intangible assets on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the accumulated depreciation / amortisation on April 1, 2015 under the previous GAAP.

DESCRIPTION Freehold land Buildings Leasehold improvements

Plant and equipment

Furniture andxtures

Electricalinstallations

Computers VehiclesOfce

equipments Software Total

Gross BlockAccumulatedDepreciation/amortisationTotal

250

-

5,670

1,418

1,049

830

5,893

3,525

301

195

566

269

1,035

975

225

181

389

241

849

849

16,227

8,483

250 4,252 219 2,368 106 297 60 44 148 - 7,744

* Amounts are below rounding off norms adopted by the Company.

45


5 Non-current Investments [Refer Notes 3 (h), 3(p) and 41]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

564

(564)

414

(414)

414

-

- - 414

144

144 558144

144 144

Unquoted:

Subsidiary Company:

268,700 Equity Shares (March 31, 2016: 215,000, April 1, 2015: 215,000) of Rs. 100 each fully paid-up in 'Supriya Elevator Company (India) Limited

Less: Provision for impairment

Associate Company:

288,550 Equity Shares (March 31, 2016: 288,550, April 1, 2015: 288,550) of Rs. 10 each fully paid up in Trio Elevators Co (India) Limited

TOTAL

Aggregate book value of gross unquoted investments

Aggregate book value of net unquoted investments

Aggregate amount of impairment in value of investments

708 558 558

144 144 558

564 414 -

Note: During the current year, pursuant to the Board of Directors resolution dated February 14, 2017 and Share Purchase Agreement dated February 23, 2017, the Company has acquired 53,700 equity shares of Rs. 100 each on March 8, 2017, representing remaining 20% shareholding in its subsidiary company, Supriya Elevator Company (india) Limited for a consideration of Rs. 150 lakhs. Consequent to share purchased, Supriya Elevator Company (India) Limited has become wholly owned subsidiary of the Company.

6(a) Loans - Non-CurrentAs at

March 31, 2017As at

March 31, 2016As at

April 1, 2015Unsecured, considered good:

Loans to related partiesUTC Fire and Security India Limited Chubb Alba Control Systems Limited Carrier Race Technologies Private LimitedUnited Technologies Corporation India Private Limited

Loans to employees

15,430 42,053 2,930

-

9,980 965

2,930 235

7,680 850

1,400 282

46 49 34

14,159 10,246 60,459

6(b) Loans - CurrentAs at

March 31, 2017As at

March 31, 2016As at

April 1, 2015

12,524 - -

115 135 261

135 26112,639

Unsecured, considered good:

Loans to related partiesChubb Alba Control Systems Limited

Loans to employees

Unsecured, considered doubtful:

Loans to employees

Less: Allowance for doubtful loans

-

-

8

(8)

19

(19)

- - -

46



ParticularsAs at

March 31, 2017 Purpose Rate of interest %

Repayable onor before

UTC Fire and Security India Limited # 15,430 Project financing and working capital

12.50 June 15, 2017

15,430

Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 8, 201753,612 Project financing and

working capital11.25 Aug 22, 2017

54,577

Carrier Race Technologies Private Limited # 2,930 Working capital 12.50 May 24, 20172,930

Details of Loans to Related Parties


ParticularsAs at

March 31, 2016 Purpose Rate of interest %


UTC Fire and Security India Limited # 150 Project financing and working capital

12.50 April 04, 2016

9,980

Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 13, 2016

965

Carrier Race Technologies Private Limited # 50 Working capital 12.50 April 25, 2016

2,930

Project financing and working capital



100

300

9,430

12.50

12.50

12.50

May 25, 2016

June 14, 2016

June 20, 2016

2,880 Working capital 12.50 May 29, 2016

United Technologies Corporation India Private Limited 235 Fund the construction of an approved training

center project.

11.00 September 30,2020

235

47


ParticularsAs at

April 1, 2015 Purpose Rate of interest %



10.90 June 26, 2015

7,680





1,200

300

200

10.50

10.15

10.15

August 13, 2015

August 31, 2015

September 12,2015

850

Carrier Race Technologies Private Limited # 1,200 Working capital 10.25 June 04, 2015

1,400

200 Working capital 10.25 August 18, 2015

United Technologies Corporation India Private Limited 282 Fund the construction of an approved training

center project.

11.00 September 30,2020

282


250 Working capital 10.00 July 13, 2015

250 Working capital 10.15 September 2,2015

250 Working capital 10.15 September 23,2015

# The loans given to these parties are renewable with mutual consent. The Company has classified these loan amounts as 'Non-current' in Note 6 (a), considering the intention to recover these loan amounts beyond a period of 12 months from the balance sheet date.

7 Other nancial assets (Non current)

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

14 14 -

14 14 257

873

743 1,101887

729 844

- - 257

253 259 -

- - -

110 194 53

(253) (259) -

Unsecured, considered good

Receivable from related parties:

Trio Elevator Company (India) Limited

Security deposits

TOTAL

Supriya Elevator Company (India) Limited

Unsecured, considered doubtful

Receivable from related parties:

Supriya Elevator Company (India) Limited

Security deposits

Less: Allowance for doubtful receivables (Refer Note 42)

Less: Allowance for doubtful receivables (Refer Note 42) (110) (194) (53)

- - -

48



8 Deferred Tax assets (Net) [Refer Notes 3 (k) and 43D]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Deferred Tax Assets

Provision for doubtful debts/advancesProvision for Compensated Absences and GratuityVoluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961DepreciationProvision for ContingencyProvision for foreseeable losses on contractsDeferred revenue

11,504 11,02712,566

2,510 1,060

168 707 135 149

5,108 2,667

62

2,816 831 262 810 135 64

6,048 -

538

2,206 1,177

370 551 133

- 6,429

- 207

12,566 11,07311,504

Deferred Tax Liabilities

Depreciation - 46-

Deferred Tax Asset (Net)

9(a) Non-current tax assets (Net) [Refer Note 3 (k)]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Advance income taxProvision for tax

2,3665,854 3,421

56,614 (50,760)

49,966 (46,545)

52,571 (50,205)

5,854

Closing balance

Advance income tax (Net of provision for income tax) 3,421 2,366

Opening balancesAdd: Taxes paid (net of refund)Less: Current tax provision for the yearLess: Tax provision for earlier yearsLess: reclassified from long term provisionLess: reclassified to current tax assets

3,421 11,9708,771

- -

766

2,366 9,701 6,695

- 1,951

-

- - - - - -

9(b) Current tax assets (Net) [Refer Note 3 (k)]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

5,170 (4,404)

--

--

766

-766 -

- -

Advance income taxProvision for tax

Closing balance

Advance income tax (Net of provision for income tax)

Opening balancesAdd: reclassified to current tax assets

- 766

- -

- -

49


10 Other non-current assets

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Capital AdvancePrepaid Expenses Balances with Government Authorities Advance to employees

26 97

6,059 15

1 127

6,654 18

204 102

5,110 18


Balances with Government Authorities Less: Provision for doubtful balances

1,101 (1,101)

988 (988)

961 (961)

Unsecured, considered doubtrful

- - -

5,4346,197 6,800

11 Inventories [Refer Note 3(c)]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Raw materials:

Components [including Components In-transitRs. 4,255 lakhs (March 31, 2016: Rs. 2,200 lakhs, April 1, 2015: Rs. 1,341 lakhs)]

Work-in-progress for components for Elevators Constructions

10,089 8,071 7,651

273 147 191

7,84210,362 8,218

During the year, the Company has written down inventories by Rs. 42 lakhs (Previous Year Rs. 557 lakhs) in respect of provision for slow moving and obsolete items. These are recognised as an expense during the year.

Details of InventoryFollowing the industry pattern, the Company considers an Elevator as produced when total components comprising complete elevators are dispatched from the Shipping department. Accordingly, there is no closing stock of goods produced as of March 31, 2017, March 31, 2016 and April 1, 2015.

12 Contract Work-In-Progress [Refer Note 28]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Progress WorkLess: Aggregate amount of Progress Billings

777924 1,271

12,221 10,950

16,160 15,236

12,860 12,083

13(a) Trade receivables - non current (Unsecured)

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Considered Good

2047 20

2047 20

Total Trade receivables

50



13(b) Trade receivables - current (Refer Note 44) (Unsecured)

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Considered Good *Considered Doubtful

32,252 6,227

32,604 5,259

27,983 5,069

27,98332,604 32,252Total Trade receivables

38,479 (6,227)

37,863 (5,259)

33,052 (5,069)Less: Allowance for doubtful debts

* This includes amount receivable from related parties Rs. 39 lakhs (March 31, 2016 : Rs. Nil , April 1, 2015 : Rs. Nil)

The Company’s exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in Note 42

14 Cash and cash equivalents [Refer Note 3(o)]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

-In Current accounts-Deposits with original maturity of less than three months

571 106,048

2,762 48,902

272 102,824

103,71451,751 107,025

404 2

86 1

615 3

Cheques on handCash on hand

DISCLOSURE ON SPECIFIED BANK NOTES During the year, the Company held specified bank notes or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017. The details of Specified Bank Notes held and transacted during the period from November 8, 2016 to December 30, 2016, along with that of other notes given below as per the notification.

Balances with banks

ParticularSpecied Bank

Notes*Other notes Total

Closing cash on hand as on November 8, 2016 2 1 3Add : Receipts for permitted transactions - 1 1Less : Paid for permitted transactions - 1 1Less : Deposited in bank accounts 2 - 2

Closing cash on hand as on December 30, 2016 - 1 1

In Rs. Lakhs

* For the purposes of this note, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.

15 Bank balances other than above

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Unpaid dividend accountsDeposit with bank [towards security deposit against sales tax and other matters]

31 15

48 16

11 9

2064 46

51


16 Other nancial assets

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

2,4283,728 2,673

Interest accrued on loans Other receivables

946 410

2,468 588

602 712

Receivables from related parties (Refer Note 44)

Deposits - OthersInterest accrued on fixed depositsInterest accrued on Employee loansOther receivables Derivative not designated as hedges- Foreign exchange forward contracts

804 366

8 135

4

426 134

- 108

4

574 260 21

259

-

Other receivables - Unsecured considered good

Security deposits - OthersLess: Allowance for doubtful deposits

420 (420)

501 (501)

354 (354)

Unsecured considered doubtful

-- -

Interest accrued on loan to subsidaryLess: Allowance for doubtful receivables

10 (10)

10 (10)

--

-- -

17 Other current assets

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Prepaid Expenses 268314 336

Advance to suppliersLess: Allowance for doubtful advances

598 (29)

650 (17)

851 (33)

1,4261,478 1,513

569633 818

Balances with Government Authorities 676531 272

18 Equity share capital

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

15,000,000 equity shares of Rs. 10 each 1,500

1,1811,181 1,181

Authorised

1,500 1,500

11,808,222 equity shares of Rs. 10 each fully paid-up 1,181Issued, subscribed and paid-up

1,181 1,181

TOTAL

52



(a) Reconciliation of the shares outstanding at the begining and at the end of the reporting period Particulars

Number ofshares

Amount Number ofshares

Amount Amount

11,808,222Balance as at the beginning of the year 1,181 11,808,222 1,181 11,808,222 1,181

Additions/ deletions during the year - - - - - -Balance as at the end of the year 11,808,222 1,181 11,808,222 1,181 11,808,222 1,181

As at April 1, 2015As at March 31, 2017 As at March 31, 2016Number of

shares

(b) The Company has one class of equity shares having a par value of Rs. 10 per equity 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 after distribution of all preferential amounts, in proportion to their shareholding.

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

11,599,819 equity shares are held by United Technologies South Asia Pacific Pte. Ltd.

1,160

1,1601,160 1,160

1,160 1,160

Relationship

Holding Company

The ultimate holding company is United Technologies Corporation Inc., USA.

(d) List of shareholders holding more than 5% shares as at the Balance Sheet date:

Name of the Shareholders Number ofshares

% holding Number ofshares

% holding % holding

11,599,819United Technologies South Asia Pacific Pte. Ltd.

98.24% 11,599,819 98.24% 11,599,819 98.24%

As at April 1, 2015As at March 31, 2017 As at March 31, 2016Number of

shares

19 Other equity

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Capital redemption reserveGeneral reserveRetained earningsESOP reserve - contribution from parent

73 1,759

91,214 723

88,36493,771 92,797

73 1,759

90,629 336

73 1,759

86,410 122

Balance as at the beginning of the year 73 73a. Capital redemption reserve

73 73

Balance as at the beginning of the year 1,759 1,759b. General reserve

1,759 1,759

Closing balance

Closing balance

Shares held by the holding company of the Company

53


As atMarch 31, 2017

As atMarch 31, 2016

Balance as at the beginning of the yearAdd: Profit for the yearItems of other comprehensive income recognised directly in retained earnings- Re-measurements of post employment benefit obligation (net of tax)

Less: Appropriations- Dividend - Dividend distribution tax

90,629 13,963

124

11,218 2,284

86,410 12,196

(160)

6,495 1,322

c. Retained earnings

91,214 90,629

Balance as at the beginning of the yearAdd: Additions during the year

336 389

122 214

d. Employees Share Option Plan (ESOP) reserve [Refer Note 3(j)]

725 336Closing balance

93,771 92,797Total - Other equity

Nature and purpose of reserves

a. Employees Share Option Plan (ESOP) reserveThe ESOP reserve is used to recognise the grant date fair value of shared based options issued to employees by the ultimate parent company. Refer Note 50 for details.

b. Capital redemption reseveCapital redemption reserve represents reserves created upon buy back of equity shares in earlier years, pursuant to the requirements of the Companies Act, 1956.

20 Provisions - Non-current

As atMarch 31, 2017

As atMarch 31, 2016

Other provisionsProvision for Product Upgradation [Refer Note 3(l) and 25]Provision for Contingency [Refer Note 3 (l)]

854 14,760

1,11417,476

As atApril 1, 2015

15,614 18,590

16718,913

19,080

Provision for contingencyProvision for Contingency represents estimates made for probable liabilities arising out of pending matters with various tax authorities. Outflow with regard to the said matters depends on exhaustion of remedies available to the Company under the law and hence, the Company is not able to reasonably ascertain the time of outflow.

Provision for Product Upgradation:Provision for product upgradation includes free product upgrade to be provided to the customers to enhance safety, quality and maintenance of elevators. The amount is determined based on the estimated cost of material and labour to be incurred on the affected units.

54



Provision forproduct

upgradation

Provision for contingency

Provision for product

upgradation

Provision forcontingency

Particulars

As atMarch 31, 2016

As atMarch 31, 2017

Opening balance

Provision made during the yearProvision used during the yearUnwinding of discountProvision reversals/written back during the year

2,339 444

(789)47

-

17,476 1,919

(1,818)-

(2,817)

1,622 2,112

(1,416)21

-

18,913 3,420

(1,584)-

(3,273)

Closing balance 2,041 14,760 2,339 17,476

(I) Movement in provisions

21 Employee benet obligations [Refer Notes 3(j) and 32]

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Provision for Gratuity -

(a) Non-current provisions for employee benets :

50 919

- 50 919

Provision for Gratuity Provision for Compensated Absences

389 2,675

(b) Current provisions for employee benets :

785 2,400

711 1,832

3,064 3,185 2,543

22 Other non-current liabilities

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Advance Service and Maintainance Billing 1,027 970 929

1,027 970 929

23 Trade payables

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Trade payables to related parties (Refer Note 44)

Trade Payables - Others

- Micro and Small Enterprises (Refer Note 45) - Others

6,422

8 14,058

20,488 16,832 13,398

4,243

6 12,583

2,967

2 10,429

The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in Note 42

24 Other nancial liabilities

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

487 225 649

Current

Capital creditors Unpaid dividendsTemporary overdraft with banksDerivative not designated as hedges- Foreign exchange forward contracts

200 48

-

239

64 31 27

103

205 11

381

52

55


25 Provisions - Current

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

16,984 12,614 10,024

Provision for foreseeable losses on contracts (Refer Note 3(I))Provision for Product Upgradation [Refer Notes 3(l) and 20]

15,796 1,188

11,388 1,226

8,569 1,455

26 Liabilities for current tax (Net)

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

- - 3,251

Provision for taxAdvance tax

--

--

8,658 (5,407)

- - 3,251

Opening balancesAdd: Current tax payable for the yearLess: Taxes paidReclassification to Long term provisions

----

3,251 -

1,300 (1,951)

Provision for tax (Net of advance tax)

----

27 Other current liabilities

As atMarch 31, 2017

As atMarch 31, 2016

As atApril 1, 2015

Advances from customersAdvance Service and Maintenance BillingStatutory liabilities Invoices raised in respect of Incomplete Contracts (Refer Note 28)Less: Adjusted against aggregated amount of cost incurred and recognised profits (less recognised losses)

Deferred Revenue for elevator contracts towards service and maintenance

5,314 11,385 1,944

123,263

88,550

34,713 855

5,772 10,969 1,930

108,356

77,235

31,121 840

5,158 10,200 1,902

96,401

71,481

24,920 714

54,211 50,632 42,894

28 Revenue from operations [Refer Note 3(d)]

Year endedMarch 31, 2017


Sale of products : Contracts for supply and installation of elevators, escalators and Trav-o-lators

Sale of services : Income from services Income from repairs

Other Operating Revenues : Sale of raw materials and components Sale of Scrap

72,430

46,805 7,480

112 208

1,27,035 1,06,855

54,650

44,925 7,036

107 137

Revenue from Operations (Net)

Closing Balance

56



I 72,430 54,650

II Revenue from sale of services recognised for the year

5,833 5,725

III 104,710 89,456

IV 5,314 5,772

V 231

Revenue from Contracts for supply and installation of elevators, escalators and Trav-o-lators recognised for the year

64

Aggregate amounts of costs incurred and recognised profits (less recognised losses) up to the reporting date

Amount of customer advances outstanding for contracts in progress as at the reporting date

Amount of retentions due from customers for contracts in progress as at the reporting date



Amount due from customers for contract work(Refer Note 12)

I 16,160 12,221

II Less: Aggregate amount of progress billings 15,236 10,950

924 1,271

Amount due to customers for contract work(Refer Note 27)

I Aggregate of progress billings 123,263 108,356

II 88,550 77,235

34,713 31,121

12,860

12,083

96,401

71,481

24,920

Amounts due from customers on contracts accounted under Percentage of Completion ('PoC') is arrived at as below [for all contracts in progress for which costs incurred plus recognised profits (less recognised losses) exceeds progress billings]

Aggregate amounts of costs incurred and recognised profits (less recognised losses) up to the reporting date

Amounts due to customers on contracts accountedunder PoC is arrived at as below [for all contracts inprogress for which progress billings exceeds costsincurred plus recognised profits (less recognised losses)]

Less: Aggregate amounts of costs incurred and recognised profits (less recognised losses) up to the reporting date

777

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

III. Excise duty paid but not recovered and the difference between provision of excise duty on opening and closing stock is disclosed as excise duty expense. Normally the Company enters into a fixed selling price contracts inclusive of excise duty. The excise duty is not separately billed to customers.

I) Disclosures pursuant to Ind AS 11:

57

29 Other Income [Refer Note 3(e)]



Interest Income: - Deposits with Banks - Income Tax Refund - Loans to Related Parties (Refer Note 44) - OthersProvision for Contingency no longer required written back (Net) (Refer Note 20)Recoveries of expenses from Related partiesGain on forward contracts not designated as hedges (Net)Unwinding of interest on deposits / retention money / employee loansProfit on sale / disposal of property, plant and equipmentOthers

6,834

189 2,755

14 898

345 -

103

50 -

11,188 10,082

7,975 283

1,379 10

-

304 4

62

33 32

30 Cost of material consumedYear ended

March 31, 2017Year ended

March 31, 2016

Opening stock of componentsAdd : Purchases of componentsLess: Closing stock of components

8,071 59,685 10,089

57,667 42,785

7,651 43,205 8,071

31 Changes In Inventories Of Work-In-ProgressYear ended


March 31, 2016

Opening Stock Components for Elevators Constructions

Less: Closing StockComponents for Elevators Contructions

147

147

273 273

(126) 44

191 191

147 147

32 Employee Benet Expenses [Refer Note 3 (j)]



Salaries, Wages, Allowances, Bonus and Benefits (Net)Contribution to Provident and Family Pension SchemeContribution to Superannuation SchemeContribution to Gratuity Fund Contribution to Employees' State Insurance and Employees' Deposit Linked Insurance SchemeShare-based payment to employees (Refer Note 50)Workmen and staff welfare expenses

23,869 1,176

170 579 66

389 931

27,178 25,245

22,110 1,148

168 591 81

214 933


58


I Dened Contribution Plans



Amount recognised in the Statement of Profit and Loss (i) Employers' Contribution to Superannuation (ii) Employers' Contribution to Employees State Insurance and Employees' Deposit Linked Insurance Scheme

170 66

236 249

168 81

a. Superannuation Fund b. State Defined Contribution Plans - Employers’ Contribution to Employees State Insurance

II Dened Benet Plans

i) Gratuity

A) The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

Particulars Fair Value of Plan Assets

Net dened benet (asset)/

liability

Present Value ofObligation

Balance as on April 1, 2015

Interest cost /incomeCurrent service costTotal amount recognised in the statement of prot or loss

Actuarial (Gains)/Losses on Obligations - Due to Change in Financial AssumptionsActuarial (Gains)/Losses on Obligations - Due to ExperienceReturn on Plan Asset, excluding interest incomeTotal amount recognised in other comprehensive income

Contributions by employerBenefit Paid Balance as on March 31, 2016

7,240 579 461

1,040

244 94

- 338

- (319)

8,299

5,610 449

- 449

- -

94 94

1,630 (319)7,464

1,630 130 461 591 244 94

(94)244

(1,630)-

835

Particulars Fair Value of Plan Assets

Net dened benet (asset)/

liability

Present Value ofObligation

Balance as on March 31, 2016

Interest cost /incomeCurrent service costTotal amount recognised in prot or loss

Actuarial (Gains)/Losses on Obligations - Due to Change in Financial AssumptionsActuarial (Gains)/Losses on Obligations - Due to ExperienceReturn on Plan Asset, excluding interest incomeTotal amount recognised in other comprehensive income

Contributions by employerBenefit Paid Balance as on March 31, 2017

8,299 627 516

1,143 259

(363)-

(104)

- (466)

8,872

7,464 564

- 564

- -

86 86

835 (466)8,483

835 63

516 579

259 (363)(86)

(190)

(835)-

389

B) The net liability disclosed above relates to funded and unfunded plans as below:

Particulars As at March 31, 2016

As atApril 1, 2015

As atMarch 31, 2017

Present Value of funded obligation as at the year endFair Value of Plan Assets as at the year end Funded StatusUnfunded Net Liability recognised in Balance Sheet

(8,872)8,483 (389)(389)

(8,299)7,464 (835)(835)

(7,240)5,610

(1,630)(1,630)


59

C) Amount recognised in the Balance Sheet

Particulars As at March 31, 2016

As atApril 1, 2015

As atMarch 31, 2017

Present Value of Obligation at the end of the yearFair value of plan assets at the end of the yearLiability recognised in the Balance Sheet

(8,872)8,483 (389)

(8,299)7,464 (835)

(7,240)5,610

(1,630)

D) Actuarial assumptionsValuation in respect of Gratuity has been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions:

Discount Rate (per annum)Rate of increase in SalaryRate of Return on Plan Assets


7.12%10.00%7.12%

7.56%10.00%7.56%


- The discount rates reflects the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligation.

- The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand and the employment market.

E) Sensitivity analysis Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Increase Decrease

Increase

Discount Rate (0.5 % movement)Compensation levels (0.5 % movement)Employee turnover (0.5 % movement)

313 (287)

59

(276)286 (44)

294 (271)

47


Impact on dened benet obligation of Gratuity

Decrease


(294)303 (56)

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligations as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change as compared to the previous year.

F) The major categories of plan assets for gratuity are as follows:

ParticularsAmount

Debts Instruments:

Central Government Securities State Government Securities Corporate Bonds

Investment Funds:

Special Deposits Scheme Insurance managed funds

Others:

Cash and cash equivalents (Net)


652 242

1,856

273 4,492

968

As at March 31, 2016 As at April 1, 2015

% Amount % Amount %

8 3

22

3 53

11

Total

605 340

2,102

273 3,925

219

8 5

28

452

3

594 415

2,383

2731,726

218

11 7

42

531

4

8,483 100 7,464 100 5,610 100


60


Recognised under: March 31, 2016 April 1, 2015

March 31, 2017

Non-current employee benefit obligations [Refer Note 21(a)]Current employee benefit obligations [Refer Note 21(b)]

- 389

50 785

919 711

Recognised under: March 31, 2016 April 1, 2015

March 31, 2017

Expected gratuity contribution for the next year 838 785 711

Less thana year

Between2 - 5 years Over 5 years Total

Particulars

March 31, 2017

Defined benefit obligation (gratuity)March 31, 2016

Defined benefit obligation (gratuity)April 1, 2015

Defined benefit obligation (gratuity)

764

685

609

I) Dened benet liability and employer contributions The weighted average duration of the defined benefit obligation is 8 years (March 31, 2016 – 8 years, April 1, 2015 - 8 years). The expected maturity analysis of undiscounted gratuity is as follows:

3,089

2,892

2,505

12,620

12,450

10,890

16,473

16,027

14,004

J) Risk exposureThrough its defined benfit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

Asset VolatilityThe plan liabilities are calculated using a discount rate set with reference to market yield of Government securities as at the Balance Sheet date; if plan asset underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grade and in Government of India securities, Group Gratuity Scheme of Life Insurance Corporation of India, Public Sector Undertaking Bonds, Special Deposit Scheme and Other Securities. These are subject to interest rate risk and the funds manages interest rate risk. The group has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The management intends to maintain the above investment mix in the continuing years.

Changes in yieldsA decrease in yields of plan assets will increase plan liabilities, although this will be partially offset by an increase in the value of the plan's holdings.

ii) Provident FundThe Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis.These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years.The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as at March 31, 2017 and March 31, 2016 and April 1, 2015, respectively.

The details of fund and plan asset position are given below:

ParticularsAs at

March 31, 2016As at

April 1, 2015

As atMarch 31, 2017

Plan assets at period end, at fair valuePresent value of benefit obligation at period endAsset recognized in balance sheet

27,154 (27,154)

-

24,056 (24,056)

-

21,214 (21,214)

-

The plan assets have been primarily invested in government securities.

Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach:

ParticularsAs at

March 31, 2016As at

April 1, 2015

As atMarch 31, 2017

Government of India (GOI) bond yieldRemaining term to maturity of portfolioExpected guaranteed interest rate - First year : - Thereafter :

7.12%5 years 8.65%8.65%

7.56%5 years 8.80%8.65%

7.90%5 years 8.75%8.65%

The Company contributed Rs. 1,176 lakhs and Rs. 1,148 lakhs to the provident fund during the years ended March 31, 2017 and March 31, 2016, respectively and the same has been recognised in the Standalone Statement of Profit and Loss under the head Employees Benefit Expenses (Refer Note 32).

G)

H)


61

III) The Liability for leave encashment and compensated absences as at year end is Rs. 2,675 lakhs (March 31, 2016 - Rs. 2,400 lakhs and April 1, 2015 - Rs. 1,832 lakhs). [Refer Note 21(b)]

33 Interest expense



Interest expense on delayed payments of taxesUnwinding of discount on product upgradation provision

- 47 47 73

52 21

34 Depreciation And Amortisation Expense



Depreciation of Property, Plant and equipmentAmortisation of Intangible Assets

1,278 -

1,278 1,373

1,373 -

35 Operating and other expenses



Consumption of stores and consumables Packing and forwarding charges Repairs and maintenance: - Buildings - Plant and machinery - Vehicles - Others Rent (Refer Note 37) Rates and taxes Insurance Power and fuel Expenses on contracts for installation/ service Advertising, publicity and sales promotion Commission Commission to Non-Executive Directors Royalties Communication costs Travelling and conveyance Printing and stationery Legal and professional charges [Refer Note (i) below] System and software maintenance expenses Bad trade receivables and other financial assets written off Less: Withdrawn from doubtful debts and receivable provision

Bad non-financial assets written off Less: Withdrawn from doubtful receivable provision

Provision for trade receivables and other financial assets Provision for non-financial assets Provision for product upgradation (Refer Note 20 and 25) Provision for contingency (Refer Note 20) Directors' fees Expenditure towards Corporate Social Responsibility activities [Refer Note (ii) below] Loss on fluctuation in foreign exchange Miscellaneous expenses

1,352 3,615

258 91 40

413 1,894

633 676 408

4,669 303 611

12 4,370

388 2,216

362 1,430 1,406 1,854

(1,406)448

12 (12)

- 427 113 444

- 2

362

628 17

27,588 26,016

- - -

2,035 22

2,112 147

2 343

695 77

924

2,077

242

62

40

550

1,710

317

345

390

3,478

314

410

8

3,855

314

2,112

342

1,117

1,699

958

(681)

277

Total


62


36 Earnings per share [Refer Note 3(n)]

Particulars

Profit attributable to the owners of the companyWeighted Average number of Equity Shares of Rs. 10 each during the yearEarnings Per Share (Basic and Diluted)Nominal Value of an Equity Share

Year ended March 31, 2017

13,96311,808,222

118.2410

12,196 11,808,222

103.28 10


The Company does not have any outstanding potential equity shares. Consequently, the basic and the diluted earnings per share of the Company remain the same.

37 Operating Leases [Refer Note 3(i)]The Company has entered into non-cancellable operating leases for warehouse and office premises for a primary period of 5 to 10 years. The Company has given refundable interest free security deposits under the agreements. Certain agreements contains provision for renewals.

Total future minimum lease payments in respect of the above mentioned premises being:

Particulars

Not later than one yearLater than one year and not later than five yearsLater than five years

For the year ended March 31, 2017

33 31

-

195 6 -


Lease payments recognised in the Statement of Profit and Loss during the year 1,894 1,710

(I) Legal and professional charges includes auditors' remuneration (net of taxes, where applicable):



For statutory auditFor tax auditFor other services Reimbursement of expenses

48 5

13 2

68 62

47 5 8 2

(ii) Corporate Social Responsibility expenses : (a) Gross amount required to be spent by the Company during the year was Rs. 359 lakhs (Previous year Rs. 343 lakhs) (b) Amount spent during the year on:

Particulars

(I) Construction/acquisition of any asset(ii) On purposes other than (i) above

- Rs. 1 Lakh

(Previous yearRs. NIL)

- Rs. 362 Lakhs(Previous yearRs. 343 lakhs)

TotalPaid during

the year

- Rs. 361 Lakhs(Previous yearRs. 343 lakhs)

38 Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company has identified the following segments i.e. (i) Contract for supply and installation of elevators, escalators and trav-o-lators and (ii) services for maintenance, repairs and modernization of elevators and escalators as reporting segments based on the information reviewed by CODM. As per Ind AS 108-Operating Segments - 'If a financial report contains both the consolidated financial statements of a parent that is within the scope of this Ind AS as well as the parent’s separate financial statements, segment information is required to be disclosed only in the consolidated financial statements.' Accordingly, the Segment information is disclosed in the consolidated financial Statements of the Company.

39 Research and development expenses [Refer Note 3 (g)]The Cost of Material Consumed, Employee Benefits Expense, Depreciation and Other Expenses shown in the Statement of Profit and Loss include Rs. 1,341 lakhs (Previous Year Rs. 1,293 lakhs) in respect of the research activities undertaken during the year.

40 The Company has carried out an independent review for assessing compliance up to March 31, 2016 with the “Transfer Pricing Rules, 2001” issued by the Central Board of Direct Taxes of India and no deviations were observed from the requirements of the aforesaid Transfer Pricing Rules. The Company is yet to commission an independent review for assessing compliance for the year April 1, 2016 to March 31, 2017 with the aforesaid Transfer Pricing Rules. However, on the basis of self-assessment of the operations during the year, and the conclusion drawn on independent review of its operations in the previous financial year, the Management does not expect any significant deviations from the requirements of the aforesaid Transfer Pricing Rules.


Yet to be paid

63

41 Exceptional Items

Impairment of investment in subsidiary [Refer Note (a) below] Provision for doubtful receivables and accrued interest receivable from subsidiary [Refer Note (b) below] (net of reversals)

(150)6

(414)(269)

ParticularsFor the year ended

March 31, 2017For the year ended

March 31, 2016

Total exceptional expenditure (144) (683)

Notes:

(a) During the current year, pursuant to Board of Directors resolution dated February 14, 2017 and Share Purchase Agreement dated February 23, 2017, the Company has acquired 53,700 equity shares of Rs. 100 each on March 8, 2017, representing remaining 20% shareholding in its subsidiary company, Supriya Elevator Company (India) Limited ("Supriya") for a consideration of Rs. 150 lakhs.

Supriya is having significant business losses and its net worth is fully eroded. The Company performed its annual impairment test for the years ended March 31, 2017 and March 31, 2016. The recoverable amount of investment in Supriya as at year end has been determined based on a "Value-in-use" method using cash flow projections / forecasts from the financial budget approved by the senior management of the Company. It was concluded that the fair value less costs of disposal did not exceed the value-in-use. As a result of this analysis, the management has recognised an impairment expense of Rs. 150 lakhs (Previous Year Rs. 414 lakhs) in the Statement of Profit and Loss. In determining the value-in-use, the cashflows were discounted at a rate of 16.75% on a pre-tax basis (Previous Year : 16.75%) considering current market assessment of the risk specific to the subsidiary company.

(b) During the previous year, in accordance with Ind AS 109 and Note 3(b), the Company had recognised expected credit loss of Rs. 259 lakhs on receivables and Rs. 10 lakhs on accrued interest from its subsidiary, Supriya Elevator Company (India) Limited ("Supriya"). During the current year, the company has reversed provision of Rs. 6 Lakhs upon receipt of amount from Supriya.

42 Financial instruments – Fair values and risk management

A. Accounting classication and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. – Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or

indirectly (i.e. derived from prices). – Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

March 31, 2017 Note No. FVTPL FVTOCIAmortised

Cost

Financial assets

(i) Loans(ii) Contract work-in-progress(iii) Trade receivables(iv) Cash and cash equivalents(v) Bank balance other than (iv) above(vi) Other financial assets(vii) Derivatives not designated as hedges - Foreign exchange forward contracts

4 - 163,099

Carrying amount

Total

163,103

Financial liabilities (i) Trade payables(ii) Other financial liabilities(iii) Derivative liabilities - Foreign exchange forward contracts

6(a) and 6(b)12

13(a) and (b) 1415

7 and 16

16

- - - - - -

4

- - - - - -

-

73,098 924

32,651 51,751

64 4,611

-

73,098 924

32,651 51,751

64 4,611

4

2324

24

- -

239

- -

-

20,488 248

-

20,488 248

239

239 - 20,736 20,975


64


March 31, 2016 Note No. FVTPL FVTOCIAmortised

Cost

Financial assets (i) Loans(ii) Contract work-in-progress(iii) Trade receivables(iv) Cash and cash equivalents(v) Bank balance other than (iv) above(vi) Other financial assets(vii) Derivatives not designated as hedges - Foreign exchange forward contracts

4 - 158,320

Carrying amount

Total


6(a) and 6(b)12

13(a) and (b) 1415

7 and 16

16

- - - - - -

4

- - - - - -

-

14,294 1,271

32,272 107,025

46 3,412

-

14,294 1,271

32,727 107,025

46 3,412

4

2324

24

- -

103

- -

-

16,832 122

-

16,832 122

103

103 - 16,954 17,057

158,324

April 1, 2015 Note No. FVTPL FVTOCIAmortised

Cost

Financial assets (i) Loans(ii) Contract work-in-progress(iii) Trade receivables(iv) Cash and cash equivalents(v) Bank balance other than (iv) above(vi) Other financial assets

Carrying amount

Total

6(a) and 6(b)12

13(a) and (b) 1415

7 and 16

- - - - - -

- - - - - -

10,507 777

28,003 103,714

20 3,529

10,507 777

28,003 103,714

20 3,529


2324

24

- -

52

- -

-

13,398 597

-

13,398 597

52

52 - 13,995 14,047

- - 146,550 146,550

B. Measurement of fair values

I) Valuation processesThe finance department of the Company includes a team that carries out the valuation of financial assets and liabilities required for financial reporting purposes.

ii) Fair value hierarchyNo financial instruments are recognised and measured at fair value, except derivative contracts which are measured at fair value through statement of profit and loss. These derivative contracts are over-the-counter short term foreign exchange forwards that are not traded in an active market. Their fair valuation is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity-specific estimates and quotes received from the banks. Since all significant inputs required to fair value these derivative contracts are observable, the instruments are classified as level 2. Other than derivatives liabilties, all other financial assets and liablities are classfied as level 3.

For all the financial assets and liabilities referred above that are measured at amortised cost, their carrying amounts are reasonable approximations of their fair values. The carrying amounts of loans, contract work in progress, trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial assets,are considered to be the same as their fair values due to their short term nature.


65

C. Financial risk management

Risk management frameworkThe Company's business activities expose it to a variety of financial risks, namely credit risk, liquidity risk and market risks. The Company's senior management and key management personnel have the ultimate responsibility for manageing these risks. The Company has mechanism to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

i) Management of the credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Trade ReceivablesThe Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Concentrations of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large. All trade receivables are reviewed and assessed for default on a regular basis. Our historical experience of collecting receivables, supported by the level of default, is that the credit risk is low. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. The Company assesses and manages credit risk based on the Company's credit policy. Under the Company credit policy each new customer is analyzed individually for credit worthiness before the Company's standard payment and delivery terms and conditions are offered. The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward looking information. The Company's accounts receivable are geographically dispersed. The Management do not believe there are any particular customer or group of customers that would subject the Company to any significant credit risks in the collection of accounts receivable. Following is the movement in Provision for Expected Credit Loss on Trade Receivables:

Loss allowance at the beginning of the yearChanges in allowance during the yearLoss allowance as at the end of the year

6,227 (968)5,259

5,069 1,158 6,227

ParticularsYear ended


March 31, 2016

Loans to related parties:The Company has given unsecured loans to other group entities of United Technologies Corporation Inc. Based on letter of support received from the parent companies of these group companies, the Company perceives low credit risk pertaining to carrying amount of loans receivable from group companies, considering 12-month’s expected credit loss.

Cash and cash equivalentsThe Company is also exposed to credit risks arising on cash and cash equivalents and term deposits with banks. The Company believes that its credit risk in respect to cash and cash equivalents and term deposits is insignificant as funds are invested in term deposits at pre -determined interest rates for specified period of time. For cash and cash equivalents only high rated banks are accepted.

DerivativesThe Company may be exposed to losses in the future if the counterparties to derivative contracts fail to perform. The Company is satisfied that the risk of such non-performance is remote due to its monitoring of credit exposures. Additionally, the Company enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default.

Other Financial Assets:The Company periodically monitors the recoverability and credit risks of its other financials assets including employee loans, deposits and other receivables. The Company evaluates 12 month expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.


66



622 (11)611

426 196 622

Security depositsYear ended


March 31, 2016

Following is the movement in Provision for Expected credit loss on Other non-current nancial assets:


269 (6)

263

- 269 269

Receivable from subsidiary companyYear ended


March 31, 2016

ii. Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintained a cautious funding strategy, with a positive cash balance throughout the years. This was the result of cash generated from the business. Cash flow from operating activities provides the funds to service the working capital requirement. Accordingly, low liquidity risk is perceived.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Particulars

Contractual cash ows

Carryingamount

TotalLess than

1 year1- 5 years More than

5 years

As at March 31, 2017Non-derivative nancial liabilities

Trade payablesOther financial liabilitiesDerivative Financial Liabilities

Foreign exchange forward contracts

20,488 248

239

20,488 248

239

20,488 248

239

- -

-

- -

-

As at March 31, 2016Non-derivative nancial liabilities



16,832 122

103

- -

-

- -

-

16,832 122

103

16,832 122

103

As at April 1, 2015Non-derivative nancial liabilities



13,398597

52

- -

-

- -

-

13,398597

52

13,398597

52


67

iii. Market risk

The Company’s size and operations result in it being exposed to foreign currency risk. The foreign currency risk may affect the Company’s income and expenses, or its financial position and cash flows. The objective of the Company’s management of foreign currency risk is to maintain this risk within acceptable parameters, while optimising returns. The Company manages currency exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are fully covered with strict limits placed on the amount of uncovered exposure, if any, at any point in time. The Company’s exposure to, and management of this risks is explained below:

The details of forward contracts outstanding as at the balance sheet date are as follows:

Particulars

As at March 31, 2017 As at March 31, 2016 As at April 1, 2015

Number ofcontracts

Import contractsEUROJPYUSDCHFCNHSGDHKD

Export contracts

Foreigncurrency Amount Number of

contractsForeigncurrency Amount Number of

contractsForeigncurrency Amount

13

6 4 4

10 - 1

2 1 74 6 - - -2 120

40

706 6 1

284 - 1

2,911

433 412

93 2,770

- 12

6,631

7 7

17 2

17 1 -

12 660

14 1

93 * -

988 405

1,011 50

997 5 -

3,456

2 2 3 - - - -

5 74 15

- - - -

367 40

970 - - - -

1,377

USD

74 - -120

Particulars

March 31, 2017 March 31, 2016 April 1, 2015

ReceivablesUSD

PayablesUSDEUROSGDHKDJPYCNHCHF

Foreigncurrency Amount



10

12 - * 9 - - -

627

764 - *

73 - - -

5

6 8 -

18 -

23 -

316

374 631

- 158

- 232

-

10

20 7 *

12 54 * *

617

1,240 497

2 99 28 *

27

Sensitivity analysis

A 10% strengthening / weakening of the respective foreign currencies with respect to functional currency of the Company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out based on the exposures as of the date of statements of financial position.

March 31, 2017 March 31, 2016

14- *7-

21 108

663

- 1623

Prot or lossEffect in INR

USDEUROSGDHKDCNH

Currencies

* Amounts are below rounding off norms adopted by the Company

The Company's exposure to foreign currency risk at the end of the reporting period expressed in INR lakhs, are as follows:

Total

Total


68


43 Tax expense



8,800 (29)

8,771

(1,128)(1,128)

7,643 6,250

Income tax expenseCurrent income tax

Current tax on profits for the yearAdjustments for current tax of prior periodsTotal current tax expense

Defered income tax asset /(liability), net

(Decrease) increase in deferred tax liabilitesTotal deferred tax expense/(benefit)

A. Amounts recognised in Statement of Prot and Loss

7,420(777)6,643

(393)(393)

B. Amounts recognised in other comprehensive income

Remeasurements of defined benefit liability (asset)

Before tax Tax (expense)benet

Net of tax

190 (66) 125

190 (66) 125

For the period ended 31 March, 2017

Remeasurements of defined benefit liability (asset)

Before tax Tax (expense)benet

Net of tax

(245) 85 (160)

(245) 85 (160)

For the period ended 31 March, 2016



21,6067,477

(29) -

52 134

9

Prot before tax

Tax using the Company’s domestic tax rate (Current year 34.61% and Previous Year 34.61%)Add Tax Effect on amounts which are not deductible (taxable) in calculating taxable income:

Adjustments for current tax of prior periodsInterest on delayed payments of taxesImpairment of investment in the subsidiaryShare based paymentsOthers

C. Reconciliation of effective tax rate

7,643 6,250

18,446 6,384

(777)18

143 74

408

Income Tax expense for the year


69

D. Movement in deferred tax balances

Provision for doubtful debts/advancesProvision for Compensated Absences and GratuityVoluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961DepreciationProvision for ContingencyRemeasurements of defined benefit obligationProvision for foreseeable losses on contractsDeferred revenue

Deferred Tax Assets/(Liability) April 1, 2016

Recognised in statementof prot or loss

Recognisedin OCI

Deferred tax assets

Deferred tax liability

Net Deferred Tax Asset March 31, 2017

2,816831 262 810 135

64 6,048

- -

538

(306)229 (94)

(103)-

85 (940)

66 2,667 (476)

- - - - - - - -

-

2,5101,060

168 707 135 149

5,108 -

2,667 62

2,510 1,060

168 707 135 149

5,108 -

2,667 62

- - - - - - -

(66)- -

Deferred Tax AssetsDepreciationNet tax assets

11,504

11,504

1,128

1,128

(66)-

(66)

12,566

12,566

-

-

12,566

12,566

Provision for doubtful debts/advancesProvision for Compensated Absences and GratuityVoluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961DepreciationProvision for ContingencyRemeasurements of defined benefit obligationDeferred revenue

Deferred Tax Assets/(Liability) April 1, 2015

Recognisedin OCI

Deferred tax asset

Deferred tax liability

Net Deferred Tax Asset March 31, 2016

2,206 1,177

370 551 133

- 6,429

- 207

610 (346)(108)

259 2

64 (381)

(85)331

- - - - - - - - -

2,816 831 262 810 135

64 6,048

- 538

2,816 831 262 810 135

64 6,048

- 538

- - - - - - -

85 -

Deferred Tax AssetsDepreciationNet tax assets

11,073 (46)

11,027

347 46

393

85 -

85

11,504 -

11,504

- --

11,504 -

11,504

Deferred Tax Assets and Deferred Tax Liabilities have been offset since they relate to the same governing taxation laws.

Deferred Tax Assets


Deferred Tax AssetsRecognised in statement

of prot or loss

70


44 Related Party Disclosures

A Relationships: (I) Where Control Exists United Technologies Corporation Inc., United States United Technologies South Asia Pacific Pte Ltd, Singapore (Formerly known as Singapore Holdco. Pte. Ltd, Singapore)

Ultimate Holding CompanyHolding Company

(II) Subsidiary Company

Supriya Elevator Company (India) Limited, India

(V) Key Managerial Personnel

Sebi JosephPedro Silva Ribeiro Geada Marcal (Till June 29, 2015)Puthan Naduvakkat SumaPriya Shankar DasguptaLate Ram Sukhraj Tarneja (Till August 07, 2015)Anil Vaish (From March 10, 2016)

Managing DirectorDirectorDirectorIndependent DirectorIndependent DirectorIndependent Director

(III) Associate Company

Trio Elevators Co (India) Limited, India

(IV) Parties Under Common Control with whom transactions have taken place during the year.

Buga Otis Asansor Sanayi Ve Ticaret A.S.,TurkeyCarrier Air Conditioning &Refrigeration R&D Management (Shanghai)Carrier Airconditioning & Refrigeration Limited, IndiaCarrier Race Technologies Private Limited, IndiaCarrier Singapore (PTE) Limited, SingaporeChubb Alba Control Systems Limited, IndiaConcepcion-Otis Philippines, Inc., PhilippinesElevators (Private) Limited, Sri LankaGuangzhou Otis Elevator Company Ltd, ChinaJSC MOS OTIS RussiaNippon Otis Elevator Company, JapanOtis A.S., Czech RepublicOtis AS, NorwayOtis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis Elevator Co., Ltd., China)Otis Elevator (China) Co., ChinaOtis Elevator Co Pty Ltd, AustraliaOtis Elevator Company (H.K.) Limited, Hong KongOtis Elevator Company (M) SDN BHD, MalasiyaOtis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevator Company Ltd, ThailandOtis Elevator Company Saudi Arabia Limited, Saudi ArabiaOtis Elevator Company, New Jersey, United StatesOtis Elevator Traction Machine (China) Co. Ltd., ChinaOtis Elevator VietNam Company Limited, VietnamOtis Elevator Worldwide SPRL, Belgium Otis Elevator, KoreaOtis Elevators International Inc., Hong KongOtis GMBH & Co. OHG, GermanyOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaOtis L.L.C., U. A. E.OTIS SCS, FranceP.T.Citas Otis Elevator, Indonesia Seral Otis Industria Metalurgica Ltda, ChileSigma Elevator (M) SDN BHD, MalasiyaSigma Elevator Singapore Pte Ltd, Singapore United Technologies Corporation India Private Limited, IndiaUTC Building & Industrial Systems EMEA SAS, FranceUTC Fire & Security India Limited, IndiaZardoya Otis S.A., Spain


71

(VI) Transaction with Post Employment benet entities Otis Elevator Company (India) Limited Employees' Gratuity Fund Otis Elevator Company (India) Limited Staff Provident Fund

B Transactions:(I) Transactions with parties referred to in (V) above

# In addition to the above, 600 units stock options (Previous Year 861 Units stock options) of United Technologies Corporation Inc., USA, the Ultimate Holding Company, were exercised during the year.

Total


Short term employee benefits: - Salaries and other employee benefitsPost employment benefits - gratuityLong term employee benefits - Compensated absencesEmployee share-based paymentCommission and sitting fee to non executive directors


March 31, 2016

522

52 21 16 14

364 55 24 43

8

625 494

(ii) The following are the details of transactions and balances with related parties:

Particulars Category For the year endedMarch 31, 2017

Purchase of Goods and Materials Otis Elevator (China) Co., ChinaOtis Electric Elevator Co., Ltd., China(Formerly known as Xizi Otis Elevator Co., Ltd., China)Zardoya Otis S.A., SpainOtis GMBH & Co. OHG, GermanyOtis Elevator Company, New Jersey, United StatesOtis Elevator Traction Machine (China) Co. Ltd., ChinaNippon Otis Elevator Company, JapanOTIS SCS, FranceGuangzhou Otis Elevator Company Ltd, ChinaOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaJSC MOS OTIS RussiaOtis A.S., Czech RepublicOtis Elevator, KoreaSupriya Elevator Company (India) Limited, India

Total 12,869


6,954

IVIV IVIVIVIVIVIVIVIVIVIVIVII

393

3,315

4,131 2,215

166 30

894 228 88

1,378 - 8 -

23

314

1,056

2,029 1,039

137 49

290 275 162

1,570 3

29 1 -

Purchase of Fixed Assets

Zardoya Otis S.A., SpainCarrier Airconditioning & Refrigeration Limited, IndiaChubb Alba Control Systems Limited, India

Total 36 60

IVIVIV

20 11 5

4

30 26

System and Software Maintenance Expenses

Otis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevator Company, New Jersey, United StatesOtis Elevators International Inc., Hong Kong

Total 892 831

IVIVIV

21

489 383

40

392 398

Legal and Professional Expenses

Otis Elevator Company, New Jersey, United StatesUnited Technologies Corporation India Private Limited, India

IVIV

11 14

17 20

Total 25 36


72



Royalty Expenses

Otis Elevator Company, New Jersey, United States

Total 4,370


3,855

IV

4,370

3,855

Repairs and Maintenance - Others

Carrier Airconditioning & Refrigeration Limited, IndiaChubb Alba Control Systems Limited, India

IVIV

26 18

20

-

Total 43 20

Reimbursement of Expenses to related parties

Otis Elevator Company, New Jersey, United StatesOtis Elevator VietNam Company Limited, VietnamOTIS SCS, FranceOtis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevator Co Pty Ltd, AustraliaNippon Otis Elevator Company, JapanOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaCarrier Airconditioning & Refrigeration Limited, IndiaBuga Otis Asansor Sanayi Ve Ticaret A.S.,TurkeyCarrier Race Technologies Private Limited, IndiaCarrier Air Conditioning &Refrigeration R&D Management (Shanghai) Co. Ltd.,ChinaUnited Technologies South Asia Pacific Pte Ltd, SingaporeOtis AS, NorwayOtis Elevator (China) Co., China

IVIVIVIVIVIVIVIVIVIVIV

IIVIV

44 1

42 * * - * - - * -

1 2

10

229

- 88 5 4 2 6 2 1 * 8

- - -

Total 99 346

Rent paid to Other Companies

Carrier Airconditioning & Refrigeration Limited, India IV

73

64

Total 73 64

Revenue from Sale of Goods/Services

Otis Elevator Co Pty Ltd, AustraliaSeral Otis Industria Metalurgica Ltda, ChileOtis Elevator Company (H.K.) Limited, Hong KongConcepcion-Otis Philippines, Inc., PhilippinesElevators (Private) Limited, Sri LankaP.T. Citas Otis Elevator, Indonesia

IVIVIVIVIVIV

-

63 * -

978 -

4

91 * 1

49 1

Total 1,042 147

Recovery from related parties

Otis Elevator Company, New Jersey, United StatesSigma Elevator Singapore Pte Ltd, Singapore United Technologies South Asia Pacific Pte Ltd, Singapore

IVIVI

38 7

300

* -

304

Total 345 304


73


Recovery of expenses from related parties

Otis Elevator Company (M) SDN BHD, MalasiyaOtis Elevator Company Ltd, ThailandConcepcion-Otis Philippines, Inc., PhilippinesCarrier Airconditioning & Refrigeration Limited, INDIAUTC Fire & Security India Limited, IndiaSigma Elevator (M) SDN BHD, MalasiyaSigma Elevator Singapore Pte Ltd,Singapore Chubb Alba Control Systems Limited, INDIACarrier Race Technologies Private Limited, IndiaOtis Elevator Company, New Jersey, United StatesUnited Technologies South Asia Pacific Pte Ltd, SingaporeOtis L.L.C., U. A. E.Otis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevator, KoreaTrio Elevators Co (India) Limited, IndiaSupriya Elevator Company (India) Limited, IndiaOtis Elevator (China) Co., ChinaOtis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis Elevator Co., Ltd., China)Carrier Air Conditioning &Refrigeration R&D Management (Shanghai) Co. Ltd.,ChinaCarrier Singapore (PTE) Limited, SingaporeUTC Building & Industrial Systems EMEA SAS, FranceNippon Otis Elevator Company, JapanOtis Elevator Company Saudi Arabia Limited, Saudi ArabiaOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaOtis Elevators International Inc., Hong KongOtis Elevator Worldwide SPRL,Belgium P.T. Citas Otis Elevator, Indonesia Others


Total 1,066 711

IVIVIVIVIVIVIVIVIVIVIIVIVIVIIIIIIVIV

IV

IVIVIVIVIVIVIVIVIV

102

1 59 57

* * 1 * *

158 11 7 4 - -

207 3 *

115

3 -

272 3 - -

61 1 -

- - - - - - - - -

114 21 7 4 2

14 183 13 14

131

17 140 41 3 2 2 - - 2

Recovery of rent from related parties (netted off from rent expense)

Supriya Elevator Company (India) Limited, IndiaCarrier Airconditioning & Refrigeration Limited, IndiaCarrier Race Technologies Private Limited, IndiaChubb Alba Control Systems Limited, IndiaUTC Fire & Security India Limited, India

IIIVIVIVIV

4 144 15 35 29

2 139 10 25 21

Total 226 197

Inter Corporate Loan Given / (Repaid) (Net)

UTC Fire & Security India Limited, IndiaChubb Alba Control Systems Limited, IndiaCarrier Race Technologies Private Limited, IndiaUnited Technologies Corporation India Private Limited, India

IVIVIVIV

5,450

53,612 -

(235)

2,300

115 1,530

(47)

Total 58,827 3,898

Interest on Inter Corporate Loan Given

UTC Fire & Security India Limited, IndiaChubb Alba Control Systems Limited, IndiaCarrier Race Technologies Private Limited, IndiaUnited Technologies Corporation India Private Limited, India

IVIVIVIV

1,661

715 366 13

1,047

100 204 28

Total 2,755 1,379


74



Dividend paid during the year

United Technologies South Asia Pacific Pte Ltd, Singapore


Total 11,020 6,380

I

11,020

6,380

OthersImpairment of investment

Supriya Elevator Company (India) Limited, India Provision for doubtful receivables

Supriya Elevator Company (India) Limited, India Provision for Interest accured on recievables

Supriya Elevator Company (India) Limited, India Reversal of provision for doubtful recievables

Supriya Elevator Company (India) Limited, India

II II

II

II

150

-

-

6

414

259

10

-

Total 156 683

Outstanding BalancesBalance as at

March 31, 2017

Loan Receivable

UTC Fire & Security India Limited, IndiaCarrier Race Technologies Private Limited, IndiaUnited Technologies Corporation India Private Limited, IndiaChubb Alba Control Systems Limited, India

Total 72,937 10,212

IVIVIVIV

9,980 2,930

235 965

7,680 1,400

282 850

Balance as atMarch 31, 2016

Balance as at April 1, 2015

15,430 2,930

- 54,577

14,110

Accrued Interest on Inter Corporate Deposit (net of TDS)

UTC Fire & Security India Limited, IndiaUnited Technologies Corporation India Private Limited, IndiaChubb Alba Control Systems Limited, IndiaSupriya Elevator Company (India) Limited, India (Net of provision of Rs. 10 lakhs (March 31, 2016, Rs. 10 lakhs, April 1, 2015 - Rs. Nil)Carrier Race Technologies Private Limited, India

IVIVIVII IV

942

4 - -

-

571

- -

10

21

1,495

- 644

-

330

Total 2,468 602 946

Payables

Otis Elevator Company, New Jersey, United StatesOtis Elevators International Inc., Hong KongOtis Elevator Company (S) Pte. Ltd., SingaporeOTIS SCS, FranceOtis AS, NorwayBuga Otis Asansor Sanayi Ve Ticaret A.S.,TurkeyCarrier Airconditioning & Refrigeration Limited, IndiaZardoya Otis S.A., SpainOtis GMBH & Co. OHG, GermanyNippon Otis Elevator Company, JapanGuangzhou Otis Elevator Company Ltd, ChinaOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaOtis Elevator (China) Co., ChinaOtis Elevator Traction Machine (China) Co. Ltd., ChinaOtis A.S., Czech RepublicOtis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis Elevator Co., Ltd., China)Otis Elevator VietNam Company Limited, Vietnam

IVIVIVIVIVIVIVIVIVIVIVIVIVIVIVIV IV

1,001

158 5

176 2 1

25 821 360 363 56

508 167 20 3

561

-

1,090

99 -

156 - -

25 256 315 40

109 173 324

- 12

343

-

1,099

85 *

173 - -

13 1,277

807 385 23

271 135 18 4

2,131

1


75

Outstanding BalancesBalance as at

March 31, 2017Balance as at

March 31, 2016Balance as at April 1, 2015

Carrier Race Technologies Private Limited, IndiaCarrier Air Conditioning &Refrigeration R&D Management (Shanghai) Co. Ltd.,ChinaUnited Technologies South Asia Pacific Pte Ltd, SingaporeUnited Technologies Corporation India Private Limited, IndiaPratt & Whitney, U. S. A.

IVIV IIVIV

* 8

- - 7

- -

- 18 7

- -

1 - -

Total 6,422 2,972 4,243

Receivables

Trade Recievables:

Elevators (Private) Limited, Sri LankaOther Non Current Financial Assets:

Supriya Elevator Company (India) Limited, India(Net of provision of Rs. 254 lakhs (March 31, 2016 -Rs. 259 lakhs, April 1, 201- Rs. Nil)United Technologies South Asia Pacific Pte Ltd, SingaporeOtis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevators International Inc., Hong KongOtis Elevator Company, KuwaitP.T. Citas Otis Elevator, Indonesia Otis Elevator, KoreaConcepcion-Otis Philippines, Inc., PhilippinesOtis Elevator Company (M) SDN BHD, MalasiyaSeral Otis Industria Metalurgica Ltda, ChileZayani Otis Elevator Company W.L.L., BahrainOtis Elevator Company Ltd, ThailandOtis Elevator Worldwide SPRL,Belgium Otis Elevator VietNam Company Limited, VietnamSigma Elevator (M) SDN BHD, MalasiyaSigma Elevator Singapore Pte Ltd,Singapore Trio Elevators Co (India) Limited, IndiaCarrier Airconditioning & Refrigeration Limited, IndiaChubb Alba Control Systems Limited, IndiaNippon Otis Elevator Company, JapanCarrier Race Technologies Private Limited, IndiaUTC Fire & Security India Limited, IndiaOtis Elevator (China) Co., ChinaOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaOtis Electric Elevator Co., Ltd.(Formerly known asXizi Otis Elevator Co., Ltd., China)Otis Elevator Co Pty Ltd, AustraliaOtis Elevator Company, New Jersey, United StatesOtis Elevator Company Saudi Arabia Limited, Saudi ArabiaCarrier Air Conditioning & Refrigeration R&D Management (Shanghai) Co. Ltd.,ChinaCarrier Singapore (PTE) Limited, SingaporeUTC Building & Industrial Systems EMEA SAS, France

IV

II IIVIVIVIVIVIVIVIVIVIVIVIVIVIVIIIIVIVIVIVIVIVIVIV IVIVIVIV IVIV

-

-

87 4 - - * - - - - - - - - - -

14 48 11 39 3 8

13 2

26

4 - 3

100

9 39

-

252

427 1 2 1 - 2 - -

34 3 - - 1 - - -

44 4 - 9

19 6 -

114

- 44

- -

- -

39

-

112 1 - - 1 -

11 32 34

- 1

59 - * 8

14 64 23 80 10 23 3 - -

- 18 2

91

- -

Total 627 969 410

588 712 410

Note:For information on transactions with post employment benefit plans mentions in A (VI) above, refer the note 32.

*amounts are below rounding off norms adopted by the company.


76


45 Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The disclosures pursuant to the said MSMED Act are as follows:



March 31, 2015


Principal amount due to suppliers registered under theMSMED Act and remaining unpaid as at year end

Interest due to suppliers registered under the MSMED Actand remaining unpaid as at year end

Principal amounts paid to suppliers registered under theMSMED Act beyond the appointed day during the year

Interest paid, other than under Section 16 of MSMED Actto suppliers registered under the MSMED Act beyond theappointed day during the year

Interest paid, under Section 16 of MSMED Act to suppliersregistered under the MSMED Act beyond the appointedday during the year

Interest due and payable towards suppliers registeredunder MSMED Act for payments already made

Further interest remaining due and payable for earlieryears

7

*

52

-

1

1

-

5

1

27

-

*

1

-

2

*

10

-

*

*

-

Detailed break-up of Interest is as follows:

* Amounts are below rounding off norms adopted by the Company for which following information is given in Rupees below:


March 31, 2016Rupees


Rupees


Rupees

Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end

Interest paid, under Section 16 of MSMED Act to suppliers registered under the MSMED Act beyond the appointed day during the year

Interest due and payable towards suppliers registered under MSMED Act for payments already made

12,270

73,000

126,476

73,000

33,066

65,353

33,066

27,842

30,270

The above information regarding total outstanding dues to Micro Enterprises and Small Enterprises and that is given in Note 23 has been determined to the extent such parties have been identified on the basis of information available with the Company.


77

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015 46 Contingent Liabilities

a) Claims against the Company not acknowledged as debt

(i) Income-tax matters

(ii) Sales tax matters

- Show Cause Notices

- Demand Notices 33,334

(iii) Excise and Service Tax matters

Excise matters

- Show Cause Notices 44,601


Service Tax matters



b) Litigations / claims against the Company by customers / ex-employees / general public. 3,643

The Company has strong grounds of appeal and does not foresee any outflow in this regard.

c) Commitments

19,691

14 14 14

646 646 1,323

32,648 28,123

40,356 37,637

3,234 3,234

- 1,515 137

22,602 22,465

4,335 4,358

507 172 264

14,028 9,554

- Matters decided against the Company in respect of which the Company has preferrred an appeal.

The demand outstanding against the Company not acknowledged as debts and not provided for, in respect of which the Company is in appeal, pertains to litigations/ disputes with various Income Tax Authorities.The Company has strong grounds of appeal and does not foresee any outflow in this regard.

Note: Assessed Sales Tax liabilities of the Company not acknowledged as debts and not provided for, in respect of which the Company is in appeal pertains to litigations/ disputes with various Sales Tax Authorities. Based on opinion received from legal consultants, the Management is of view that the Company does not expect an outflow in this regard.

Excise and Service tax liabilities of the Company not acknowledged as debts and not provided for, in respect of which the Company is in appeal pertains to litigations/ disputes with various Excise and Service Tax Authorities. Based on opinion received from legal consultants, the Management is of view that the Company has strong grounds of appeal and does not foresee any outflow in this regard.Interest with respect to above matters has been considered to the extent quantified by the tax authorities.

i. Estimated amount of contracts [net of capital advances of Rs. 26 lakhs (March 31, 2016 : Rs. 1 lakh, April 1, 2015 : Rs. 204 lakhs) remaining to be executed on Capital Account not provided for.

ii. Guarantees given by banks to various government departments and customers for specific business purpose. The Management is of opinion that there will be no impact on future cash flows of the Company.


78


47 Capital Management

The Company determines the capital requirements based on its financial performance, operating and long term investment plans.The funding requirements are met through operating cash flows generated. For the purpose of Company's Capital Risk Management, "Capital" includes issued equity share capital, securities premium and all other equity reserves attributable to it's shareholders.

The Company's objective in managing its capital is to safeguard its ability to continue as a going concern and to maximise shareholder's values.

The capital structure of the Company is based on management’s assessment of the appropriate balance of key elements in order to meet its strategic and day-to day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company maintains a stable and strong capital structure with a focus on total equity so as to maintain shareholders and creditors confidence and to sustain future development and growth of its business. The Company takes appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The management monitors the return on capital as well as the level of dividends to shareholders. Refer table below for the dividends paid :

For the year endedMarch 31, 2017

Equity sharesInterim dividend Rs. 40 per fully paid shareFinal dividend for the year ended March 31, 2016 of Rs. 95 (Previous year - Rs. 15) per fully paid share

ParticularsFor the year ended

March 31, 2016

- 11,218

4,724 1,771


Dividends not recognised at the end of the reporting periodIn addition to the above, subsequent to the year end the directors of the Company have recommended the payment of final dividend of Rs. Nil (March 31, 2016 - Rs. 95) per fully paid equity share.

ParticularsAs at

March 31, 2016

- 11,218

48 Events Occuring after the balance sheet date:

Subsequent to year end, the Board of directors of the Company have declared an interim dividend of Rs. 360 per share aggregating Rs. 42,510 lakhs vide Board resolution dated July 06, 2017. The dividend distribution tax paid on these dividend is Rs. 8,654 lakhs.


79

Gross AmountsAmounts subjectto master netting

arrangementsNet amount

Particulars

As at March 31, 2017Other nancial assets

Derivative not designated as hedges- Foreign exchange forward contracts

Other nancial liabilities

Derivative Financial LiabilitiesForeign exchange forward contracts





As at April 1, 2015Other nancial liabilities


239

4

103

52

(4)

(4)

(4)

-

4 (4) -

235

-

99

52

Related amounts not offset

49 Offsetting nancial assets and nancial liabilities

The following table presents the recognized financial instruments that are subject to enforceable master netting arrangements and other similar agreements but not offset, as at March 31, 2017, March 31, 2016 and April 1, 2015.

Master netting arrangements - not currently enforceable

Agreements with derivative counterparties are based on ISDA Master Agreement. Under the terms of these arrangements, only where certain credit events occur (such as default), the net position owing/receivable to a single counterparty in the same currency will be taken as owing and all the relevant arrangements terminated. As the company does not presently have a legally enforceable right of set-off, these amounts have not been offset in the balance sheet, but have been presented separately in the table above.

50 Employee share based payments

Certain employees of the Company have been granted Long-Term Incentive Plan (LTIP) namely - Stock Appreciation Rights (SAR), Performance Stock Units (PSU), and Restricted Stock Units (RSU) by the Ultimate Parent Company United Technologies Corporation (UTC).

- SARs are the grant of a “right” to acquire UTC shares based on the appreciation in value of a fixed number of shares. - PSUs are units (representing one UTC Share) transferred to the employee subject to the satisfaction of certain performance conditions. - RSUs are units (representing one UTC Share) transferred to the employee at the end of the vesting period.

Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. LTIP awards with performance based vesting generally have a minimum three-year vesting period and vest based on performance against pre-established metrics. The fair value of each option award is estimated on the date of grant using a binomial lattice model.

In accordance with Note 3 (j), the Company has recognised an employee benefit expense towards share based payment of Rs. 389 lakhs (March 31, 2016: Rs. 214 lakhs) with a corresponding increase in Other Equity as equity contribution from the Ultimate Holding Company.

51 Transition to Ind AS:

These are the Company’s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in Notes 2 and 3 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the


80


Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act ("Previous GAAP"). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Previous GAAP to Ind AS.

Ind AS optional exemptions 1) Investments in Subsidiary and Associate Company

Ind AS 101 allows a first time adopter to record the carrying value of investment in subsidiary and associate as per pervious GAAP (i.e. Indian GAAP carrying value on transition date) or fair value of investment in subsidiary and associate at transition date as deemed cost under Ind AS.

Accordingly, the Company has elected to carry its investments in subsidiary and associate at Previous GAAP carrying value on transition date.

2) Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its property, plant and equipment and other intangible assets at their previous GAAP carrying value. 3) Share based payments

A first-time adopter is not required to apply Ind AS 102 Share-based Payment to equity instruments that were vested on or before the date of transition to Ind AS. Accordingly, the Company has accounted only for the unvested options granted by the parent outstanding as on transition date. 4) Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date."

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investments in associates and subsidiary.

Ind AS mandatory exceptions 1) Estimates

An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for impairment of financial assets based on expected credit loss model.

2) Classication and measurement of nancial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that adjusts at the date of transition to Ind AS.


81

Reconciliation of total Equity as per Previous GAAP and Ind AS :

As atApril 1, 2015

Description

Total equity as per Previous GAAP

Add:

Proposed dividends(including dividend distribution tax)

Finance income recognised on effectiveinterest rate basis on security deposits

Finance income recognised on effectiveinterest rate basis on Employee loans

Fair valuation of ProductUpgradation Provision

Less:

Impact due to change in Revenuerecognition policy in line with Ind AS

Allowance on account of expected creditlosses on trade receivables

Mark to Market adjustmenton derivative contracts

OthersDeferred tax impact ofInd AS adjustments

Total

Total equity as per Ind AS

8

4

4

6

1

5

2

9

Notes to rsttime adoption

As atMarch 31, 2016

13,502

165

61

153

(1,478)

(419)

(99)

(16)

631

12,308

93,978

2,132

99

68

16

(515)

(318)

Rent recognised over lease periodtowards interest free security deposits 4 (122) (120)

Employee cost recognised overemployee loan period 4 (70) (79)

(27)

(20)

310

1,546

89,545

81,670 87,999

B. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.


82


For the yearended March 31, 2016

Description

Reconciliation of total comprehensive income for the year ended March 31, 2016

Adjustments:

ADD:


Finance income recognised on effectiveinterest rate basis on security deposits 4 65

Finance income recognised on effectiveinterest rate basis on Employee loans 4 9

Fair valuation of Product Upgradation Provision 6 137

Remeasurements of the net defined benefit plans 3 245

Others 4

Less:

Impact due to change in Revenue recognitionpolicy in line with Ind AS 1 (963)

Allowance on account of expected credit losses on trade receivables 5 (101)

Rent recognised over lease period towardsinterest free security deposits 4 (2)

Employee cost recognised over employee loan period 4 (7)

Mark to Market adjustment on derivative contracts 2 (72)

Share based payments 7 (214)

Deferred tax impact of Ind AS adjustments 9 237

Net Prot as per Ind AS for the year 12,196

Items that will not be reclassified to Statement of Profit and Loss

Actuarial loss arising from remeasurementsof post employments benefits 3 (245)

Deferred tax relating to this item 9 85

Other comprehensive income, net of income tax (160)

Total comprehensive income as per Ind AS 12,036

Prot after tax as per previous GAAP 12,858

Particulars

Previous GAAPInd AS adjustments (Refer notes to first time adoption below)Ind AS - Net cashflows

Net cashowfrom Operating

activities

Net cashow from Investing

activities

Net cashowfrom Financing

activities

Net increase/(decrease)in cash and

cash equivalents

Cash and cashequivalents asat April 1, 2015

Cash and cashequivalents as

at March 31, 2016

6,491 (148)

6,343

4,615 121

4,737

(7,796)-

(7,796)

3,310 (26)

3,284

103,715 -

103,714

107,025 (26)

106,999

Cash ow reconciliation: The impact of Ind AS adoption on the Standalone Statement of cash flows for the year ended March 31, 2016


83

Notes to the rst time adoption

1. Revenue Along with sale of products, the Company generally provides free services/maintenance to its customers. Under previous GAAP, provision was created for the expected cost of providing free services/ maintenance. Under Ind AS, instead of creating a provision towards cost of free services/ maintenance, fair value of revenue relating to free service/ maintenance is deferred and recognised over the service period.

Further, under previous GAAP, revenue from repairs job was recognised upon completion of job. Under Ind AS, revenue from repairs jobs is recognised under percentage of completion method.

2. Mark to market on forward contracts The Company uses forward contracts to hedge its risks of net exposure associated with foreign currency fluctuations. Under previous GAAP, the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, was amortised as expense or income over the life of the contract. Under Ind AS, all transactions have been marked to market at period end.

3. Remeasurement of post-employment benet obligations Under Ind AS, remeasurements of post employment benefits i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability, are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year.

4. Security deposits and Loans to employees Under the previous GAAP, interest free lease security deposits and employee loans were recorded at their transaction value. Under Ind AS, all financial instruments are required to be measured at their fair value on initial recognition. Accordingly, security deposits and employee loans have been fair valued under Ind AS. Difference between transaction value and fair value has been recognised as prepaid expenses. Prepaid expenses are amortised over the lease term or loan term and notional interest income is recognised on security deposits and employee loans.

5. Trade Receivables Unlike the previous GAAP, the Company has applied expected credit loss model for recognising allowance for doubtful debts, as per the requirements of Ind AS 109.

6. Provisions Under the previous GAAP, discounting of provisions was not allowed. Under Ind AS, provisions are measured at discounted amounts, if impact of time value is material. Accordingly, non-current provisions for Product Upgration have been discounted to their present values.

7. Employee share based payments The ultimate parent company has granted certain equity settled stock options to the senior employees of the Company, without any cross charge. Under Ind AS, cost of these stock options are recognised over the vesting period, based on their grant date fair value, with corresponding adjustment to equity.

8. Proposed dividend Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividends was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

9. Deferred taxes Under Ind AS, deferred tax has been recognised on the adjustments made on the transition to Ind AS.

10. Other comprehensive income Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as 'Other Comprehensive Income' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

11. Retained earnings Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

12. Bank Overdrafts Under Ind AS, bank overdrafts payable on demand and which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, bank overdrafts were considered as part of liabilities and movement in bank overdrafts were shown as part of Operating Activities.


84


52 Recent Accounting Pronouncements Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, 'Share-based Payment'. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of cash flows’ and IFRS 2, 'Share-based payment', respectively. The amendments are applicable to the company from April 1, 2017. Amendment to Ind AS 7: ‘Statement of cash flows’: The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. These ammendments are effective for annual periods beginning on or after April 1, 2017. Application of the ammendments will result in additional disclosures provided by the Company. Amendment to Ind AS 102: The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement. The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

The notes are an integral part of the Standalone Financial Statements










85

INDEPENDENT AUDITORS' REPORTTO THE MEMBERS OF OTIS ELEVATOR COMPANY (INDIA) LIMITED

Report on the Consolidated Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying consolidated Ind AS financial statements of Otis Elevator Company (India) Limited (“hereinafter referred to as the Holding Company”) and its subsidiary (the Holding Company and its subsidiary together referred to as “the Group”) and its associate company; (refer Note 2[B] to the attached consolidated financial statements), comprising of the consolidated Balance Sheet as at March 31, 2017, the consolidated Statement of Profit and Loss (including Other Comprehensive Income), the consolidated Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information prepared based on the relevant records (hereinafter referred to as “the Consolidated Ind AS Financial Statements”).

Management’s Responsibility for the Consolidated Ind AS Financial Statements

2. The Holding Company’s Board of Directors is responsible for the preparation of these consolidated Ind AS financial statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of the consolidated financial position, consolidated financial performance, consolidated cash flows and changes in equity of the Group including its associate in accordance with accounting principles generally accepted in India including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. The Holding Company’s Board of Directors is also responsible for ensuring accuracy of records including financial information considered necessary for the preparation of consolidated Ind AS financial statements. The respective Board of Directors of the companies included in the Group and of its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associate respectively and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the 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, which has been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act and the Rules made thereunder including the accounting standards and

matters which are required to be included in the audit report.

4. We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated Ind AS financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the consolidated Ind AS financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated Ind AS 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 Holding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated Ind AS financial statements.

6. We believe that the audit evidence obtained by us, other than the unaudited financial information as certified by the management and referred to in sub-paragraph 8 of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements.

Opinion

7. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated Ind AS 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 principles generally accepted in India of the consolidated state of affairs of the Group and its associates as at March 31, 2017, and their consolidated total comprehensive income (comprising of consolidated profit/ loss and consolidated other comprehensive income), their consolidated cash flows and consolidated changes in equity for the year ended on that date.

Other Matters

8. The consolidated Ind AS financial statements also include the Group’s share of total comprehensive income (comprising of profit and other comprehensive income) of Rs. 141 Lakhs for the year ended March 31, 2017 as considered in the consolidated Ind AS financial statements, in respect of an associate company, whose financial information has not been audited by us. These financial information are unaudited and have been

86

Annual Report 2016 - 2017 CONSOLIDATED

INDEPENDENT AUDITORS' REPORT

furnished to us by the Management, and our opinion on the consolidated Ind AS financial statements insofar as it relates to the amounts and disclosures included in respect of this associate company and our report in terms of sub-section (3) of Section 143 of the Act insofar as it relates to the aforesaid associate, is based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial information are not material to the Group.

9. The comparative financial information of the Company for the year ended March 31, 2016 and the transition date opening balance sheet as at April 1, 2015 included in these consolidated Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31, 2016 and March 31, 2015, prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated August 10, 2016 and August 19, 2015, respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.

Our opinion is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

10. As required by Section 143(3) of the Act, we report, to the extent applicable, 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 of the aforesaid consolidated Ind AS financial statements.

(b) In our opinion, proper books of account as required by law have been maintained by the Holding Company and its subsidiary included in the Group, including relevant records relating to preparation of the aforesaid consolidated Ind AS financial statements have been kept so far as it appears from our examination of those books and records of the Holding Company and its subsidiary.

The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including other comprehensive income), Consolidated Cash Flow Statement and the Consolidated Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account maintained by the Holding Company and its subsidiary included in the Group, including relevant records relating to the preparation of the consolidated Ind AS financial statements.

(d) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2017 taken on record by the Board of

Directors of the Holding Company and the reports of the statutory auditors of its subsidiary company, none of the directors of the Group companies, is disqualified as on March 31, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Holding Company and its subsidiary company and the operating effectiveness of such controls, refer to our separate Report in Annexure A.

(g) 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:

(i) The consolidated Ind AS financial statements disclose the impact, if any, of pending litigations as at March 31, 2017 on the consolidated financial position of the Group– Refer Notes 20 and 46 to the consolidated Ind AS financial statements.

(ii) Provision has been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts as at March 31, 2017– Refer (a) Note 26 to the consolidated Ind AS financial statements. The Company did not have long term derivative contracts as at March 31, 2017.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Holding Company, and its subsidiary company, incorporated in India during the year ended March 31, 2017.

(iv) The Group has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from November 8, 2016 to December 30, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Holding Company, and its subsidiary company, incorporated in India and as produced to us by the Management – Refer Note 14 to the consolidated Ind AS financial statements.

For Price Waterhouse & Co Bangalore LLPFirm Registration Number: 007567S/S-200012Chartered Accountants


Mumbai Date: August 17, 2017

87

ANNEXURE A TO INDEPENDENT AUDITORS’ REPORTReferred to in paragraph 10(f) of the Independent Auditors’ Report of even date to the members of Otis ElevatorCompany (India) Limited on the consolidated Ind AS nancial statements for the year ended March 31, 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act1. In conjunction with our audit of the consolidated Ind AS

financial statements of the Company as of and for the year ended March 31, 2017, we have audited the internal financial controls over financial reporting of Otis Elevator Company (India)Limited (hereinafter referred to as “the Holding Company”) and its subsidiary company as of that date.

Management's Responsibility for Internal Financial Controls2. The respective Board of Directors of the Holding company

and its subsidiary company are responsible for establishing and maintaining internal financial controls based on “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 Repor ting issued by the Institute of Char tered Accountants of India (ICAI)”. 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 the respective 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.

Auditor's Responsibility3. 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 ICAI and the Standards on Auditing under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. 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.

4. 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.

5. 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 Reporting6. 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 Reporting7. 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.

Opinion8. In our opinion, the Holding Company and its subsidiary

company have, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, 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 Repor ting issued by the Institute of Char tered Accountants of India.

For Price Waterhouse & Co Bangalore LLPFirm Registration Number: 007567S/S-200012Chartered Accountants


Mumbai Date: August 17, 2017

88


OTIS ELEVATOR COMPANY (INDIA) LIMITEDConsolidated Balance Sheet as at March 31, 2017

As at As at As at Notes in Rs. Lakhs in Rs. Lakhs in Rs. Lakhs

ASSETSNon-current assetsProperty, plant and equipment 4 6,333 7,747 Capital work-in-progress 4 26 285 Other intangible assets 4 1 -Investment in an Associate 5 440 151 Financial assets

(i) Loans 6(a) 60,458

10,246 (ii) Trade receivables 13(a) 47

20

(iii) Other financial assets 7 903

859

Deferred tax assets (net) 8 12,416

11,025

Non-current tax assets (net) 9(a) 5,870

2,384

Other non-current assets 10 6,196

5,434 Total non current assets 92,691 38,151

Current assetsInventories 11 10,519

8,027

Financial assets

(i) Loans 6(b) 12,639 261 (ii) Contract work-in-progress 12 932

784

(iii) Trade receivables 13(b) 32,792

28,226

(iv) Cash and cash equivalents 14 51,831

1,03,887

(v) Bank balances other than (iv) above 15 90

42

(vi) Other financial assets 16 3,729

2,418

Current Tax assets 9(b) 766

-

Other current assets 17 1,499

1,438

Total current assets 1,14,797 1,45,083

TOTAL ASSETS 2,07,488 1,83,234

EQUITY AND LIABILITIES

EQUITY

Equity share capital 18 1,181

1,181

Other equity 19 93,394 87,456 Non-controlling interest - - Total equity 94,575

88,637

LIABILITIESNon-current liabilitiesProvisions 20 15,614

19,080

Employee Benefit Obligations 21(a) 40 957

Other non-current liabilities 22 1,027 929

Total non-current liabilities 16,681

20,966 Current liabilitiesFinancial liabilities

(i) Short term borrowings 23 100

113

(ii) Trade payables 24 20,797

13,597

(iii) Other financial liabilities 25 525

766

Provisions 26 17,005

10,026

Employee Benefit Obligations 21(b) 3,090 2,563

Liabilities for current tax (net) 27 - 3,251

Other current liabilities 28 54,715

43,315 Total current liabilities 96,232 73,631 Total liabilities 1,12,913 94,597

TOTAL EQUITY AND LIABILITIES 2,07,488 1,83,234

7,154 - 2

299

14,159 20

755

11,380

3,433

6,800 44,002

8,358

135 1,282

32,463

1,07,143

62

2,675

-

1,526

1,53,643

1,97,645

1,181

92,535 (15)

93,701

18,590

89

970 19,649

100

17,048

258

12,620

3,206

- 51,063 84,295

1,03,944

1,97,645

This is the Balance Sheet referred to in our report of even date.For Price Waterhouse & Co Bangalore LLP


Firm Registration No. 007567S/S-200012Chartered AccountantsAsha Ramanathan

Sebi Joseph Suma P N

Partner

Managing Director Director

Membership No. 202660

DIN 05221403 DIN 05350680Mitesh Mittal Sanu KapoorChief Financial Officer Company Secretary

Place: MumbaiPlace: Mumbai


The above Balance sheet should be read in conjunction with the accompanying Notes.


89

RevenueRevenue from Operations 29Other Income 30

Total income

Expenses

Cost of materials consumed 31Changes in Inventories of work-in-progress 32Excise dutyEmployee Benefits Expenses 33Interest Expense 34Depreciation and amortization Expenses 35Other Expenses 36

Total expenses

Prot before share of net prots of investmentsaccounted for using equity method and tax

Share of net profits of investments accounted forusing equity method and tax

Prot before Tax

Income tax expense 431. Current Tax2. Deferred Tax3. Adjustment of tax for earlier years

Prot for the year

Other comprehensive income

Items that will not be reclassified to Statement of Profit and Loss:Actuarial gains/(loss) arising from remeasurements of post-employment benefit obligations

Deferred tax income/ (expense) related to these items

Share of Other comprehensive income of associateaccounted using equity method

Other comprehensive income for the year, net of tax

Total comprehensive income for the year

Prot is attributable to:Owners of Otis Elevator Company (India) LimitedNon-controlling interests

Other comprehensive income attributable toOwners of Otis Elevator Company (India) LimitedNon-controlling interests

Total comprehensive income attributable to :Owners of Otis Elevator Company (India) LimitedNon-controlling interests

Earnings per Share - (Basic and Diluted) [Refer Notes 37]

(Rs. per Equity Share of Rs. 10 each)

[Nominal value of share Rs. 10 each] (Previous Year - Rs. 10 each)

OTIS ELEVATOR COMPANY (INDIA) LIMITEDConsolidated Statement of Prot and Loss for the year ended March 31, 2017

Note Year ended March 31, 2017

in Rs. Lakhs


in Rs. Lakhs

1,08,121 10,092

1,18,213

43,443

44

2,272 25,568

921,376

26,368

99,163

19,050

149

19,199

7,420 (270)(777)

12,826

(243)

85

(1)

(159)

12,667

12,841 (15)

(159) -

12,682 (15)

108.62

1,28,505 11,190

1,39,695

58,465

(126)

2,841 27,532

72 1,280

28,094

1,18,158

21,537

142

21,679

8,800 (1,101)

(29) 14,009

196

(66)

(1)

129

14,138

14,051 (42)

128 1

14,179 (41)

118.64



Asha RamanathanPartnerMembership No : 202660


Mitesh MittalChief Financial Officer



The above consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.This is the Statement of Profit and Loss referred to in our report of even date.

Suma P N DirectorDIN 05350680

Sanu KapoorCompany Secretary

90


OTIS ELEVATOR COMPANY (INDIA) LIMITED

For the year endedMarch 31,2017


Consolidated Statement of cash ows for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

Cash ow from operating activities:

Profit Before Tax

Adjustments for :Depreciation and Amortisation expense

Provision for trade receivables and other financial assets

Provision for non-financial assets

Unrealised (Gain) / Loss on Forex (net)

Bad trade receivables and other financial assets written off

Interest expense on delayed payments of taxes

Interest - others

Unwinding of Interest on Product Upgradation Expense Provision

Interest on :

- Deposits with Bank

- Income Tax Refund

- Loans to related parties

- Others

Profit on sale / disposal of property, plant and equipment (Net)

Provision for Product Upgradation

Provision for contingency / write back of provision for contingency (Net)

Provision for Loss on contracts

Unwinding of Interest on deposits/ retention money/ employee loans

Share based payments to Employees

Share of net profits of investments accounted for using equity method

Operating Prot before working capital changes

Change in operating assets and liabilities

(Increase) / Decrease in Trade receiveables - non-current

(Increase) / Decrease in Trade receiveables - current

(Increase) / Decrease in Inventories

Increase in Trade Payables

(Increase) / Decrease in other current financial assets

(Increase) / Decrease in other non-current assets

(Increase) / Decrease in other current assets

Increase/ (Decrease) in long term provisions

Increase/ (Decrease) in short term provisions

Increase / (Decrease) in employee benefit obligations (non-current)

Increase / (Decrease) in employee benefit obligations (current)

Increase / (Decrease) in other current financial liabilities

Increase / (Decrease) in non-current liabilities

(Increase) / Decrease in other non current financial assets

Increase / (Decrease) in other current liabilities

(Increase)/ Decrease in Contract work-in-progress

(Increase)/ Decrease in Other bank balances

Operating Prot after Working Capital changes

Taxes paid (Net)Net cash generated from operating activities (A)

Particulars

19,199

1,376

2,053

27

102

277

6

52

21

(7,977)

(283)

(1,379)

(10)

(33)

2,112

4

147

(62)

214

(149)

15,697

-

(6,567)

(331)

3,339

253

(1,596)

(87)

(511)

331

(867)

400

(435)

41

104

7,748

(497)

(20)

17,003

(10,711) 6,291

21,679

1,280

488

111

90

448

9

-

47

(6,836)

(189)

(2,755)

(14)

(50)

444

11

(898)

(103)

389

(142)

14,009

(27)

(1,264)

(2,161)

3,653

331

516

27

(3,023)

4,828

(49)

80

161

57

(148)

3,652

350

(44)

20,948

(11,785) 9,163

91

Cash ow from nancing activities

Interest Paid on short term borrowings

Dividend paid

Dividend Distribution Tax paid

Repayment of Borrowings

Transactions with Non-controlling interest [Refer Note 50 (c )]

Net (cash utilised) for Financing Activities ( C )

Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C)

Cash and Cash Equivalents at the Beginning of the YearCash and Cash Equivalents at the End of the Year

Cash and Cash Equivalents comprise :

Cash on hand

Cheques on hand

Bank Balances:

- In Current accounts

- In Demand Deposits

Temporary overdrat with Banks

Cash ow from investing activities


Proceeds from Sale of Fixed Assets

Loans Given (Net of repayment)

Interest received

Net Cash (Utilised for) / Generated from Investing Activities (B)

OTIS ELEVATOR COMPANY (INDIA) LIMITEDConsolidated Statement of cash ows for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars

(13)

(11,201)

(2,284)

-

(150)

(13,648)

(55,288)

1,07,084 51,796

1

86

2,840

48,904

(34)

51,796

(418)

94

(58,803)

8,324

(50,803)


(11)

(6,474)

(1,322)

(13)

(7,820)

3,196

1,03,887 1,07,084

2

404

678

1,06,059

(59)

1,07,084

(466)

62

(3,787)

8,918

4,726





Notes:1. The above Cash Flow Statement has been prepared under "Indirect Method" set out in Accounting Standard (Ind AS) 7 on the Statement ofCash Flow as notified under Companies (Accounts) Rules, 2015. 2. The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this Note. (Refer Note 53). 3. The above Statement of Cash Flows should be read in conjunction with the accompanying Notes.

This is the Cash Flow Statement referred to in our report of even date.







92


Particulars

Particulars


Changes in equity share capital

Balance as at March 31, 2016

Changes in equity share capital

Balance as at March 31, 2017

OTIS ELEVATOR COMPANY (INDIA) LIMITEDConsolidated Statement of changes in equity for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)A. Equity Share Capital (Refer Note 18)

Amount

1,181

-

1,181

-

1,181

B. Other equity

Capitalredemption

reserve

Generalreserve

Retainedearnings

Non-controlling interests

TotalTotalOtherequity


Total comprehensive incomefor the period

Addition towards share based paymentsBalance as at March 31, 2016



Dividend distribution tax

Profit/(loss) for the year

Dividends paid

73 1,759 85,502 122 87,456 87,456

- - 12,841 - 12,841 (15) 12,826

- - (159) - (159) - (159)

- - 12,682 - 12,682 (15) 12,667

- - (6,495) - (6,495) - (6,495)

- - (1,322) (1,322) - (1,322)

- - - 214 214 - 214 73 1,759 90,367 336 92,535 (15) 92,520

Other Equity

Equitycontribution

fromUltimateParent -

Share based

Transactions with non controllinginterests (Refer Note 50 (c ))

Total comprehensive incomefor the period

Addition towards share based paymentsBalance as at March 31, 2017

Particulars



Dividend distribution tax

Profit/(loss) for the year

Dividends paid

Other Equity

Generalreserve

Retainedearnings

Equitycontribution

fromUltimateParent -

Share based

73 1,759 90,367 336 92,535 (15) 92,520

- 14,051 - 14,051 (42) 14,009

- 126 - 126 1 127

- 14,177 - 14,177 (41) 14,139

- (207) - (207) 56 (151)

- (11,218) - (11,218) - (11,218)

- (2,284) - (2,284) - (2,284)

- - 389 387 - 389 73 1,759 90,835 725 93,392 - 93,392

TotalTotal


-

-

-

-

-

-

-

Capitalredemption

reserve

Non-controlling interests

The above Consolidated Statement of changes in equity should be read in conjunction with the accompanying Notes. As per our report of even date








Place: MumbaiDate: August 17, 2017 Place: Mumbai


OTIS ELEVATOR COMPANY (INDIA) LIMITEDNotes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

1 Background of the Company Otis Elevator Company (India) Limited ("the Company") is incorporated on October 30, 1953 under the provisions of the

Companies Act, 1956 (the "Act"). The group is engaged inter-alia in the business of manufacture, erection, installation and maintenance of elevators, escalators and travolators. The financial statements are for the group consisiting of Otis Elevator Company (India) Limited and its subsidiary.

2 Basis of Preparation and Principles of Consolidation : (A) Basis of Preparation (a) Statement of compliance The consolidated financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under

Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements up to year ended March 31, 2016 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act. These financial statements are the first financial statements of the group under Ind AS. Refer Note 53 for an explanation of how the transition from previously applicable Indian GAAP (hereinafter referred to as 'previous GAAP') to Ind AS has affected the group’s financial position, financial performance and cash flows.

(b) Historical cost convention These financial statements have been prepared on the historical cost basis except for the following: (i) Certain financial assets and liabilities (including derivative instruments) measured at fair value (ii) Defined benefit plans - plan assets measured at fair value and (iii) Share based payments (c) Use of estimates and judgments The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and

assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

"This Note provides an overview of the areas that involved higher degree of judgment or complexity, and of items which are more

likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant Notes together with information about the basis of calculation for each affected line item in the financial statements.The areas involving critical estimates or judgments are:"

(i) Estimation of defined benefit obligations ((Refer Notes 33, 21(a) and 21(b)) (ii) Estimation of current tax expense and receivables/payables (Refer Notes 9(a), 9(b), 27 and 43) (iv) Impairment of trade and other receivables (Refer Note 6(a), 7, 10, 16 and 17) (v) Recognition and measurement of provisions and contingencies (Refer Notes 20 and 26) (d) Current vs non-current classication

Operating cycle All assets and liabilities have been classified as current or non-current as per the group’s normal operating cycle and other criteria

set out in the Schedule III to the Companies Act, 2013. Based on the nature of business and the time between the supply of products/rendering of services and their realisation in cash and cash equivalents, the group has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.

(B) Principles of Consolidation and equity accounting : (a) Subsidiary Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the

group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the group. "The group combines the financial statements of the parent and its subsidiaries line by line adding together like items of assets,

liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group."

94


Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit and loss, consolidated statement of changes in equity and balance sheet respectively.

(b) Associates Associates are all entities over which the group has significant influence but not control or joint control.This is generally the case

where the group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see (c) below), after initially being recognised at cost.

(c) Equity Method Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the

group's share of the post-acquisition profits or losses of the investee in profit and loss, and the group's share of other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment."

When the group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the group and its associates and joint ventures are eliminated to the extent of the group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the group.

The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described in Note 3(h) below.

(d) Change in ownership interests The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity

owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised within equity.

When the group ceases to consolidate or equity account for an investment because of a loss of control, or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

"If the ownership interest in an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate."

3 Signicant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in

preparing the opening Ind AS balance sheet at April 1, 2015 for the purposes of the transition to Ind AS, unless otherwise indicated.

(a) Foreign currency translations (i) Functional and presentation currency Items included in the financial statements of the group are measured using the currency of the primary economic environment in

which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Indian rupee (Rs.), which is group’s functional and presentation currency.

(ii) Transactions and balances Transactions in foreign currencies are translated to the functional currency of the group at exchange rates at the dates of the

transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate prevailing on that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denminated in foreign currecies at year end exhange rate are generally recongised in profit or loss.Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

(b) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of

another entity.


95

(i) Financial assets A financial asset is (i) Cash; (ii) a contractual right to receive cash or another financial asset; to exchange financial assets or

financial liabilities under potentially favorable conditions; (iii) or a contract that will or may be settled in the entity's own equity instruments and a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.

Recognition, measurement and classication A financial asset is recognised in the balance sheet only when the group becomes party to the contractual provisions to the

instrument. All financial assets are measured initially at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed to profit or loss.

The group classifies its financial assets into a) financial assets measured at amortised cost, and b) financial assets measured at fair value (either through other comprehensive income or through profit or loss). Management determines the classification of its financial assets at the time of initial recognition or, where applicable, at the time of reclassification. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

(1) Financial assets measured at amortised cost Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and

interest are measured at amortised cost. A gain or loss on a financial asset that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method."

A financial asset is classified at amortised costs if it is held within a business model whose objective is to a) hold financial asset in order to collect contractual cash flows and b) the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using effective interest rate method (EIR). Amortised cost is arrive at after taking into consideration any discount or fees or costs that are an integral part of the EIR. The amortisation of such interests forms part of finance income in the statement of profit and loss. Any impairment loss arising from these assets are recognised in the Statement of Profit and Loss.

(2) Financial assets measured at fair value through other comprehensive income (FVTOCI) A financial asset is classified at fair value through other comprehensive income if it is held within a business model whose

objective is to a) hold financial asset in order to collect contractual cash flows and for selling the financial assets and b) the contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of impairment of gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included in other income using the effective interest rate method.

(3) Financial assets measured at fair value through prot and loss (FVTPL) Any asset which do not meet the criteria for classification as at amortised cost or as FVTOCI, is classified as FVTPL. Financial

assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in the Statement of Profit and Loss.

(ii) Financial liabilities A financial liability is (i) a contractual obligation to deliver cash or another financial asset to another entity; or to exchange financial

instruments under potentially unfavorable conditions; (ii) or a contract that will or may be settled in the entity's own equity instruments and is a non-derivative for which the entity is or may be obliged to deliver a variable number of its own equity instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity's own equity instruments.

Recognition, measurement and classication A financial liability is recognised in the balance sheet only when the group becomes party to the contractual provisions to the

instrument. Financial liabilities are classified as either held at a) fair value through profit or loss, or b) at amortised cost. Management determines the classification of its financial liabilities at the time of initial recognition or, where applicable, at the time of reclassification.

After initial measurement, such financial liabilities are subsequently measured at amortised cost using the EIR method. Financial

liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

(iii) De-recognition The group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the

rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership is transferred. A financial liability is de-recognised when the obligation specified in the contract is discharged, cancelled or expires.


96


(iv) Impairment of nancial assets In accordance with Ind AS 109, the group applies expected credit loss (ECL) model for measurement and recognition of

impairment loss on the financial assets. The group follows ‘simplified approach’ permitted by Ind AS 109, Financial instruments, for recognition of impairment loss

allowance on Trade Receivables which requires expected lifetime losses to be recognised from initial recognition of the receivables.

At the time of recognition of impairment loss on other financial assets, the group determines that whether there has been a significant increase in the credit risk since its initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the financial instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.

ECL impairment loss allowance/ reversal is recognized during the period as expense/ income in the Statement of Profit and Loss. In case of financial assets measured as at amortised cost, ECL is presented as an allowance. Until the asset meets write-off criteria, the group does not reduce impairment allowance from the gross carrying amount but is disclosed as net carrying amount.

(v) Derivatives Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-

measured at fair value through Profit or Loss.

(vi) Offsetting nancial instruments Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable

right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.

Inventories Inventories are valued at the lower of cost and net realisable value.Cost of components for service and repair inventories are

computed on weighted average cost basis. Cost for components of elevators includes materials, labour and manufacturing overheads and other costs incurred in bringing the inventories to their present location, and is determined using standard cost method that approximates actual cost.

(d) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are inclusive of

excise duty and net of taxes collected on behalf of the third parties. Revenue is recognised to the extent it is probable that the economic benefits will flow to the group and the revenue can be reliably measured.

Revenue from construction and repair contracts is recognised on Percentage of Completion Method with reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion of a contract is determined as the proportion that contract costs incurred for work performed up to the year end bear to the estimated total contract costs. However, provisions are made for the entire loss on a contract irrespective of the amount of work done.

When two or more revenue generating activities or deliverables are provided under a single arrangement, each deliverable that is considered to be a separate unit of account and accounted for separately. The allocation of consideration from a revenue arrangement to its separate units of account is based on the relative fair value of each unit. If the fair value of the delivered item is not reliably measurable, then revenue is allocated based on the difference between the total arrangement consideration and the fair value of the undelivered item. Under contracts for supplies and installation, the group provides free service / maintenance to its customers. The consideration received is allocated between the equipment sale and service relative to the fair value of free service offered. The fair value of the free service is deferred and recognised as revenue on pro-rata basis over the contract period.

Revenue from Maintenance contracts is recognised on pro-rata basis over the contract period. Revenue for Repair jobs is recognised on completion of job.

Revenue from the sale of raw materials and components, and sale of scrap are recognised when the significant risks and rewards of ownership of the goods have passed to the customer.

Price Adjustment Claims, if any, are recognised as income after considering reasonable certainty of collection. (e) Other Income Interest income from financial asset is recognised using the effective interest rate method. The effective interest rate is the rate

that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the group estimates the expected cash flows by considering all the contractual terms of the financial asset (for example, prepayment, extension, call and similar options) but does not consider


97

the expected credit losses. Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic

benefits associated with the dividend will flow to the group, and the amount of the dividend can be measured reliably. Recoveries from Group Companies include recoveries towards common facilities/ resources and other support provided to such

parties which is recognised as per terms of agreement.

(f) Property, plant and equipment Recognition and measurement Freehold land is stated at cost. All other items of property, plant and equipment are measured at historical cost less depreciation.

Historical cost includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Depreciation methods, estimated useful lives and residual value Depreciation on tangible assets is provided on written down value method at the rates and in the manner prescribed under

Schedule II of the Companies Act, 2013. Depreciation is provided on pro-rata basis with reference to the month of addition/installation/ disposal of assets, except in case of assets costing Rs. 5,000 or less, which are depreciated fully in the year of acquisition. The group has estimated the useful lives of assets equivalent to the useful lives prescribed in Schedule II to the Companies Act, 2013 as below:

The residual values are not more than 5% of the original cost of the asset. Depreciation methods, residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is higher than its estimated recoverable amount.

Gains or losses arising from the retirement or disposal of a tangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.

Leaseholds improvements are amortised over the lease period on Straight line basis. Transition to Ind AS On transition to Ind AS, the group has elected to continue with the carrying value of all of its property, plant and equipment

recognised as at April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

(g) Intangible assets Intangible assets that are acquired by the group and have finite useful lives are measured at cost less accumulated amortisation

and accumulated impairment losses. Softwares purchased are amortised over a period of 3 to 5 years on straight line basis. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net

disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and Loss.

Research and Development: Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are

also charged to the Statement of Profit and Loss unless a product’s technical feasibility and other criteria set out in Ind AS 38 – ‘Intangible assets’ have been established, in which case such expenditure is capitalised.

Transition to Ind AS On transition to Ind AS, the group has elected to continue with the carrying value of all of intangible assets recognised as at April

1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.


Particulars Buildings Plant & equipment Furniture & fixtures Electrical installations Computers Vehicles Office equipments

Useful lives 30 years 15 years 10 years 10 years 3 years 8 - 10 years 5 years

98


(h) Impairment of non-nancial assets : Non-Financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount

may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

(I) Leases Operating leaseAs a Lessee, lease in which significant portion of risks and rewards of ownership are not transferred to the group

are classified as operating lease.Payments made under operating leases are charged to Statement of Profit and Loss on a straight-line basis over the lease term unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases.

(j) Employee benets i) Short term obligation Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to

be paid if the group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. Termination benefits are recognised as an expense as and when incurred.

ii) Other long-term employee benet obligations Compensated Absences The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in

which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

iii) Post employment obligations a) Dened contribution plans A defined contribution plan is a post-employment plan under which an entity pays fixed contributions and will have no legal or

constructive obligation to pay further amounts.The group contributes to Superannuation Fund, Employee’s State Insurance Fund and Employees Deposit Linked Insurance scheme, and has no further obligation beyond making its contribution. The group’s contributions to the above funds are charged to the Statement of Profit and Loss.

b) Dened benet plans Provident Fund Contributions to Provident Fund and Employee’s Pension Scheme 1995 are made to Trust administered by the group. The group's

liability is actuarially determined (using the Project Unit Credit method) at the end of the year and any shortfall in the fund size maintained by the Trust set up by the group, is additionally provided for.

Gratuity The group provide 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 of vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees' salary and the tenure of employment. The group’s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuary using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.


99

iv) Termination Benets Termination benefits in the nature of voluntary separation plan are recognised in the Statement of Profit and Loss as and when

incurred. v) Share based payments Share based compensation benefits are provided to employees by the Ultimate Parent group without any cross charge.The fair

value of of options granted is recognised as an employee benefit expenses with a corresponding increase in equity as contribution from the parent. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the group revises its estimates of the number of options that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of revision to original estimates, if any, in the profit or loss, with a corresponding adjustment to equity.

(k) Income tax Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates items

recognised directly in equity or in other comprehensive income. Current tax The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable

income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the country where the group operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of

assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognised only if it is

probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in

subsidiaries, branches and associates and interest in joint arrangements where the group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.Deferred tax assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries, branches and associates and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and taxable profit will not be available against which the temporary difference can be utilised

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

(l) Provisions and contingent liabilities Provisions are recognised when the group has a present legal or contructive 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 a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value, wherever group can estimate the time of settlement, of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The increase in the provisions due to passage of time is recognised as interest expense.

"Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurance or non-occurance of one or more uncertain future events not wholly with in the control of the group 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 can not be made. Wherer the likelihood of outflow of resources is remote, no provision or disclosure as specified in Ind AS -37 - ""Provision, contigent liablities and contigent assets"" is made."

(m) Segment reporting The Chief Operational Decision Maker (CODM) monitors the operating results of its business segments separately for the

purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based


100


on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments are reported in a manner consistent with the internal reporting provided to the CODM.

(n) Earnings per share "Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the

weighted average number of equity shares outstanding during the period.For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares."

(o) Cash and cash equivalents For the purpose of presentation in the Statement of Cashflows, Cash and cash equivalent comprise of cash/ cheques on hand

and at banks including short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value, and bank overdrafts.

(p) Dividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the

entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

(q) Rounding of amounts All amounts disclosed in the financial statements and Notes have been rounded off to the nearest Rupees in lakhs as per the

requirement of Schedule III, unless otherwise stated.


101

OTIS ELEVATOR COMPANY (INDIA) LIMITEDNotes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017(All amounts are in Rupees in Lakhs, except otherwise as stated)

4. Property, Plant and Equipment [Refer Notes 3(f) and (h)]

Description



Freehold land Buildings Leasehold improvements Plant and equipment Furniture and fixtures Electrical installations Computers Vehicles Office equipments Total



March 31, 2017As at

March 31, 2016 For the

year Deductions As at


March 31, 2017

250 4,394

448 2,670

145 297

90 48

182 8,523

- 76 13

313 31

- 8 5

57 503

- 25

1 * - -

17 16

1 60

250 4,445

460 2,983

175 297

81 37

239 8,966

- 429 132 549

49 76 35 12 87

1,369

- 403 228 467

38 56 17

9 62

1,280

- 5 1 * - - 3 7 *

16

- 828 359

1,016 87

132 49 14

149 2,633

250 3,616

102 1,967

89 165

32 22 91

6,333

- 528 502 26 - - 26- -

Description


As at April 1, 2015

Freehold land Buildings Leasehold improvements Plant and equipment Furniture and fixtures Electrical installations Computers Vehicles Office equipments Total



March 31, 2016As at




March 31, 2016

250 4,252

218 2,368

109 297

61 44

149 7,747

- 149 230 313

37 -

33 13 37

811

- 7 -

11 1 - 4 9 4

36

250 4,393

449 2,670

144 297

90 48

182 8,522

- - - - - - - - -

- 429 132 551

49 76 35 15 89

1,376

- - - 2 * - * 3 2 7

- 429 132 549

49 76 35 12 87

1,369

250 3,964

317 2,121

95 220

55 36 95

7,153

285 524 809 - -- - - -

Other Intangible assets Intangible assets - [Refer Notes 3(g) and (h)]

Description


As at April 1, 2016

Software


March 31, 2017As at




March 31, 2017

* - * 1 - 12 2 112 * 1 - - *2 1

Description


As at April 1, 2015

Software


March 31, 2016As at



March 31, 2016

2 - * 1 - - 2 12 * 1 - - 2- 1

Note: The Company has availed the deemed cost exemption in relation to the property plant and equipment and intangible assets on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer Note below for the gross block value and the accumulated depreciation / amortisation on April 1, 2015 under the previous GAAP.

* Amounts are below rounding off norms adopted by the group.


**

Total

Total

DESCRIPTION Goodwill Trademark Software Total

Gross BlockAccumulatedAmortisation

Net Block

418

418

175

175

859

859

1,451

1,451

- - - -

DESCRIPTION Freehold

land Buildings Leasehold

improvementsPlant and

equipmentFurniture and

xturesElectrical

installationsComputers Vehicles

Ofceequipments Total

Gross BlockAccumulatedDepreciation

250

-

5,670

1,418

1,049

831

5,896

3,528

310

202

566

269

1,052

991

227

182

396

247

15,415

7,667

250 4,252 219 2,368 108 297 61 44 149 7,748Net Block

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5 Investment in an Associate :[Refer Note 3 (h)]

Associate Company:288,550 Equity Shares (March 31, 2016: 288,550, April 1, 2015: 288,550) of Rs. 10 each fully paid up in Trio Elevators Company (India) Limited

TOTAL

6 (a) Loans - Non-Current

Unsecured, considered good:Loans to related parties UTC Fire and Security India Limited Chubb Alba Control Systems Limited Carrier Race Technologies Private Limited United Technologies Corporation India Private Limited

Loans to employees

6 (b) Loans - Current

Unsecured, considered good:Loans to related parties Chubb Alba Control Systems Limited

Loans to employees

Unsecured, considered doubtful:Loans to employeesLess: Allowance for doubtful loans

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

440 440

299 299

151 151

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

15,430 9,980 7,680

42,053 965 850

2,930 2,930 1,400

- 235 282 45 49 34

60,458 14,159 10,246

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

12,524 - -

115 135 261

- 8 19

- (8) (19) - - -

12,639 135 261

As atMarch 31, 2017

Amounts

Purpose Rate ofinterest %

Repayable on or

before


12.50 June 15, 2017

15,430


53,612 Project financing and working capital

11.25 Aug 22, 2017

54,577

Carrier Race Technologies Private Limited # 2,930 Working capital 12.50 May 24, 20172,930


Particulars

103


As at

March 31, 2016

AmountsPurpose

UTC Fire and Security India Limited # 150 Project financing and working capital

12.50 April 04, 2016

100 Project financing and working capital

12.50 May 25, 2016

300 Project financing and working capital

12.50 June 14, 2016

9,430 Project financing and working capital

12.50 June 20, 2016

9,980


Carrier Race Technologies Private Limited # 50 Working capital 12.50 April 25, 2016

2,880 Working capital 12.50 May 29, 20162,930

United Technologies CorporationIndia Private Limited

235 Fund the constructionof an approved

training center project.

11.00 September 30, 2020

235


ParticularsRate of

interest %Repayable on or

before

UTC Fire and Security India Limited #

Chubb Alba Control Systems Limited #

Carrier Race Technologies Private Limited #

United Technologies CorporationIndia Private Limited





Working capital

Working capital

Working capital

Working capital

Working capital

Working capital

10.90

10.50

10.15

10.15

10.85

10.00

10.15

10.15

10.25

10.25

11.00

June 26, 2015

August 13, 2015

August 31, 2015

September 12, 2015

May 19, 2015

July 13, 2015

September 2, 2015

September 23, 2015

June 04, 2015

August 18, 2015

September 30, 2020

5,980

1,200

300

200

7,680

100

250

250

250

850

1,200

2001,400

282

282

As at

April 1, 2015

Amounts

Purpose


ParticularsRate of

interest %Repayable on or

before

Fund the constructionof an approved

training center project.

# The loans given to these parties are renewable with mutual consent. The group has classified these loan amounts as 'Non-current' in Note 6 (a), considering the intention to recover these loan amounts beyond a period of 12 months from the balance sheet date.

104



As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015 7 Other nancial assets (Non current)

Unsecured, considered goodReceivable from related parties:Trio Elevator Company (India) Limited

Security depositsLong-term Deposits with bank with maturity period more than

12 months (Held as lien by bank against bank guarantees)Security depositsLess: Allowance for doubtful deposits (Refer Note 42)

* Amounts are below rounding off normsadopted by the group

8 Deferred Tax assets (Net)[Refer Notes 3 (k) and 43D]

Deferred Tax AssetsProvision for doubtful debts/advancesProvision for Compensated Absences and GratuityVoluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961Depreciation / AmortisationProvision for ContingencyProvision for forseeable losses on contractsDeferred RevenueGross Deferred Tax Assets

Deferred Tax LiabilitiesDepreciation/ AmortisationDividend Distribution Tax on undistributed profits of an Associate

Gross Deferred Tax Liabilities

Net Deferred Tax Assets (net)

9(a) Non-current tax assets (Net)[Refer Note 3 (k)]

Advance income taxProvision for taxAdvance income tax (Net of provision for income tax)

Opening balancesAdd: Taxes paid (net of refund)Less: Current tax provision for the yearAdd: Reclassified from long term provisionLess: Reclassified to current tax assetsClosing balance

14 14 -

884 741 858

5 * 1

110 194 53

(110) (194) (53)

- - - 903 755 859

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

2,419 2,723 2,206 1,060

831

1,177

168

262

369

708

810

551

135

135

133

149

64 -

5,108

6,048

6,429

2,667 - -

62

538

207

12,476 11,411 11,072

- - 46

60 31 1

60

31

47

12,416 11,380 11,025

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

56,632

48,683

52,594

(50,762)

(45,250)

(50,210)

5,870 3,433 2,384

3,433 2,384 -

11,976 9,695 -

8,773 6,695

- 1,951

766 -

5,870 3,433

2,384

105


As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015 9(b) Current tax assets (Net)

[Refer Note 3 (k)]

Advance income tax

Provision for tax

Advance income tax (Net of provision for income tax)

Opening balances

Add: reclassified to current tax assetsClosing balance

10 Other non-current assets


Capital Advance

Prepaid Expenses

Balances with Government Authorities

Advance to employees

Unsecured, considered doubrful


Less: Provision for doubtful receivables

5,170 - -

(4,404) - - 766 - -

- - -

766 - -

766 - -

26 1 204

97 127 102

6,059 6,654 5,110

15 18 18

1,104 993 966

(1,104) (993) (966)

- - -

6,197 6,800 5,434

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

11 Inventories

[Refer Note 3(c)]

Raw materials:

Components and Spares [including Components In-transitRs. 4,255 lakhs (March 31, 2016: Rs. 2,200 lakhs, April 1, 2015: Rs. 1,341 lakhs)]

Work-in-progress for components for Elevator Constructions

10,246 8,211 7,836

273 147 191

10,519 8,358 8,027

Details of InventoryFollowing the industry pattern, the group considers an Elevator as produced when total components comprising complete elevators are dispatched from the Shipping department. Accordingly, there is noclosing stock of goods produced as of March 31, 2017, March 31, 2016 and April 1, 2015.

During the year, the group has written down inventories by Rs. 42 lakhs (Previous Year Rs. 557 lakhs) in respect of provision for slow moving and obsolete items. These are recognised as an expenseduring the year and included in ‘Changes in inventories of work-in-progress’ in Statement of Profit and Loss.

12 Contract Work-In-Progress

[Refer Note 29]

Progress Work

Less: Aggregate amount of Progress Billings

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

16,306 12,315 12,904

15,374 11,033 12,120 932 1,282 784

106



As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

13 (a) Trade receivables - non current

(Unsecured)

Considered Good

Total Trade receivables

13 (b) Trade receivables - current (Refer Note 44)

(Unsecured)

Considered Good *

Considered Doubtful

Less: Allowance for doubtful debtsTotal Trade receivables

47 20 20

47 20 20

32,792 32,463 28,226

5,328 6,258 5,120 38,120 38,721 33,346

(5,328) (6,258) (5,120) 32,792 32,463 28,226

The group’s exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in Note 42.

* This includes amount receivable from related parties Rs. 39 lakhs (March 31, 2016 : Rs. Nil , April 1, 2015 : Rs. Nil)

14 Cash and Cash equivalents

Balances with banks

-In Current accounts

-Deposits with original maturity of less than three months

Cheques on hand

Cash on hand

2,840 678 442

48,904 1,06,059 1,02,827

86 404 615

1 2 3 51,831 1,07,143 1,03,887

Particular Specied Bank Notes* Other notes Total

Closing cash on hand as on November 8, 2016 2

1

3

Add : Receipts for permitted transactions -

1

1

Less : Paid for permitted transactions -

1

1

Less : Deposited in bank accounts 2

-

2

Closing cash on hand as on December 30, 2016 -

1

1

48 31 11

15 Bank balances other than above

Unpaid dividend

Deposit with banks [towards security deposit against sales tax and other matters] 42 31 31

90 62 42

Disclosure On Specied Bank Notes During the year, the group held specified bank notes or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017. The details of Specified Bank Notes held and transacted during the period from November 8, 2016 to December 30, 2016, along with that of other notes given below as per the notification.

* For the purposes of this note, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.

107


As at

As at

March 31, 2017

March 31, 2017

As at

As at

March 31, 2016

March 31, 2016

As at

As at

April 1, 2015

April 1, 2015

16 Other nancial assets

Receivables from related parties (Refer Note 44)

Interest accrued on loans

Other receivables

Other receivables - Unsecured considered good

Deposits - Others

Interest accrued on fixed deposits

Interest accrued on Employee loans

Other receivables

Derivative not designated as hedges

- Foreign exchange forward contracts

Unsecured, considered doubtful

Security deposits - Others

Less: Allowance for doubtful deposits

2,468 946 591

588 410 712

427 805 574

135 368 261

- 8 21

107 134 259

4 4 -

502 420 355

(502) (420) (355)

- - -

3,729 2,675 2,418

17 Other current assets

Prepaid Expenses

Advance to employees

Advance to suppliers

Less: Allowance for doubtful advances


316 268 338

2 5 3

654 605 858

(17) (29) (33)

637 576 825

544 676 272 1,499 1,525 1,438

1500 1,500 1,500

1,181 1,181 1,181 1,181 1,181 1,181

18 EQUITY SHARE CAPITAL

Authorised

15,000,000 equity shares of Rs. 10 each

Issued, subscribed and paid-up

11,808,222 equity shares of Rs. 10 each fully paid-upTOTAL

(a) Reconciliation of the shares outstanding at the begining and at the end of the reporting period

Balance as at the beginning of the year

Additions/ deletions during the yearBalance as at the end of the year

Number of shares Amount Number of shares Amount

1,18,08,222 1,181 1,18,08,222 1,181

- - - - 1,18,08,222 1,181 1,18,08,222 1,181

As at March 31, 2017 As at March 31, 2016

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

108



(b) The Group has one class of equity shares having a par value of Rs. 10 per equity 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 after distribution of all preferential amounts, in proportion to their shareholding.

Relationship

Holding Company

(c) Shares held by the holdingcompany of the company

11,599,819 equity shares(Previous Year: 11,599,819 equity shares)are held by United TechnologiesSouth Asia Pacific Pte. Ltd.

The ultimate holding company is UnitedTechnologies Corporation Inc., USA.

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

1,160 1,160 1,160

1,160 1,160 1,160

(d) List of shareholders holding more than 5% shares as at the Balance Sheet date:

Name of theShareholders

Number ofshares % holding

United TechnologiesSouth Asia Pacific Pte. Ltd.

1,15,99,819

98.24%

As at

March 31, 2017

Number of shares % holding Number of shares % holding

1,15,99,819 98.24% 1,15,99,819 98.24%

As at

March 31, 2016

As at

April 1, 2015

19 OTHER EQUITY

Capital redemption reserve

General reserve

Retained earnings

ESOP reserve - contributon from parent

a. Capital redemption reserve


Balance as at the end of the year

b. General reserve



73 73 73

1,759 1,759 1,759

90,837 90,367 85,502

725 336 122 93,394 92,535 87,456

73 73

73 73

1,759 1,759

1,759 1,759

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

c. Retained earnings

Balance as at the beginning of the year 90,367

Add: Profit for the year 14,051

Items of other comprehensive income recognised directly in retained earnings

- Re-measurements of post employment benefit obligation (net of tax) 128

Less : Appropriations

- Dividend 11,218

- Dividend distribution tax 2,284

Transactions with Non-Controlling Interest (207)

Balance as at the end of the year 90,837

85,502

12,841

(159)

6,495

1,322

-

90,367

109


As at

March 31, 2017

As at

March 31, 2016 d. ESOP reserve - contribution from parent


Add: Additions during the year


TOTAL - OTHER EQUITY 93,394

Nature and purpose of reserves

a. Capital redemption reseve

b. Employees Share Option Plan (ESOP) reserve

The ESOP reserve is used to recognise the grant date fair value of shared based options issued to employees by the ultimate parent company. Refer Note 52 for details.

Capital redemption reserve represents reserves created upon buy back of equity shares in earlier years, pursuant to the requirements of the Companies Act, 1956.

336 122

389 214725 336

92,535

20 Provisions - Non-Current

Other provisions

Provision for Product Upgradation [Refer Note 3(l)] 854

Provision for Contingency [Refer Note 3 (l)] 14,760 15,614

1,114 167

17,476 18,913 18,590 19,080

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

Provision for contingency Provision for Contingency represents estimates made for probable liabilities arising out of pending matters with various tax authorities. Outflow with regard to the said matters depends on exhaustion of remedies available to the Company under the law and hence, the Company is not able to reasonably ascertain the time of outflow.

Provision for Product Upgradation:Provision for product upgradation includes free product upgrade to be provided to the customers to enhance safety, quality and maintenance of elevators. The amount is determined based on the estimated cost of material and labour to be incurred on the affected units.

(i) Movement in provisions

ParticularsProvision for

product upgradation

Provision for contingency

Balance as at 31 March 2016 2,339

17,476

Provision made during the year 444

1,919

Provision used during the year (789)

(1,819)

Unwinding of discount 21

-

Provision reversals/written back during the year -

(2,817) Balance as at 31 March 2017 2,041

14,760


Provision forproduct

upgradation

Provision for

contingency

1,622

18,913

2,112

3,420

(1,416)

(1,584)

-

-

(3,273)

2,339

17,476


47

110



As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

21 Employee benet obligations

[Refer Notes 3(j) and 33]

(a) Non-current provisions for employee benets :

Provision for gratuity

(b) Current provisions for employee benets :

Provision for gratuity

Provision for Compensated Absences

22 Other Non-Current Liabilities

Advance Service and Maintenance Billing

23 Short-term Borrowings

Unsecured working capital loans repayable on demand from:

Directors of a Subsidiary Unsecured working capital loan from related parties

Carrier Airconditioning & Refrigeration Limited

TOTAL

40 89 95740 89 957

393 789 714

2,697 2,417 1,8493,090 3,206 2,563

1,027 970 9291,027 970 929

- - 13

100 100 100

100 100 113

25 Other nancial liabilities

Current

Capital creditors 200

64 205

Unpaid dividends 48

31 11

Interest accrued and due on borrowings 4

1 -

Temporary overdraft with banks 34

59 498

Derivative not designated as hedges

- Foreign exchange forward contracts 239 103 52525

258 766

24 Trade Payables

Trade payables to related parties (Refer Note 44) 6,422 4,243 2,967

Trade Payables - Others

- Micro and Small Enterprises (Refer Note 45) 48 28 4

- Others 14,327 12,777 10,626

20,797 17,048 13,597

The Group's exposure to currency and liquidity risks related to trade payables is disclosed in Note 42.

111

As at

March 31, 2017

As at

March 31, 2016


As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

26 Provisions - Current

Provision for foreseeable losses oncontracts (Refer Note 3(d))Provision for Product Upgradation[Refer Notes 3(l) and 20]

27 Liabilities for current tax (Net)

Provision for tax

Advance taxProvision for tax (Net of advance tax)

Movement in Current Tax Liabilities

Opening balances

Less: Taxes paid

Reclassification to Non-current provisionsClosing balance

28 Other Current Liabilities

Advances from customers

Advance Service and Maintenance Billing

Statutory liabilities

Invoices raised in respect of Incomplete Contracts(Refer Note 29)Less: Adjusted against aggregated amount of cost incurredand recognised profits (less recognised losses)

Deferred Revenue for elevator contracts forservice and maintenance

15,817 11,394 8,571

1,188 1,226 1,45517,005 12,620 10,026

- - 8,658

- - (5,407) - 3,251

- 3,251

- 1,300

(1,951)- -

5,401 5,882 5,325

11,442 11,017 10,244

1,944 1,939 1,914

1,24,287 1,09,225 97,328

89,233 77,850 72,221

35,054 31,375 25,107

874 850 725 54,715 51,063 43,315

29 Revenue from operations

[Refer Note 3(d)]

Sale of products :

Contracts for supply and installation of elevators, escalators and Trav-o-lators

73,509 55,559

Sale of services :

Income from services 47,120 45,203

Income from repairs 7,555 7,114

Other Operating Revenues :

Sale of raw materials and components 112 107

Sale of Scrap 209 138

Revenue from Operations (Net) 1,28,505 1,08,121

112


I) Disclosures pursuant to Ind AS 11:

I 73,509 55,559

II Revenue from sale of servicesrecognised for the year

5,833 5,725

III 1,05,539 90,165

IV 5,401 5,882

V 233

Amount due from customers for contract work(Refer Note 12)

I 16,306 12,315

II Less: Aggregate amount of progress billings 15,374 11,033 932 1,282

Amount due to customers for contract work(Refer Note 28)

I Aggregate of progress billings 1,24,287 1,09,225

II 89,233 77,850

35,054 31,375


Revenue from Contracts for supply andinstallation of elevators, escalators andTrav-o-lators recognised for the year

65

12,904

12,120

97,328

72,221

25,107

Aggregate amounts of costs incurred andrecognised profits (less recognised losses)up to the reporting date

Amount of customer advances outstanding forcontracts in progress as at the reporting date

Amount of retentions due from customers forcontracts in progress as at the reporting date

Amounts due from customers on contracts accountedunder Percentage of Completion ('PoC') is arrived atas below [for all contracts in progress for which costsincurred plus recognised profits (less recognised losses)exceeds progress billings]

Aggregate amounts of costs incurred and recognisedprofits (less recognised losses) up to the reporting date

Amounts due to customers on contracts accountedunder PoC is arrived at as below [for all contracts inprogress for which progress billings exceeds costsincurred plus recognised profits (less recognised losses)]

Less: Aggregate amounts of costs incurred and recognisedprofits (less recognised losses) up to the reporting date

As at

March 31, 2017

As at

March 31, 2016

784

As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015

II) Excise duty paid but not recovered and the difference between provision of excise duty on opening and closing stock is disclosed as excise duty expense. Normally the group enters into a fixed selling price contracts inclusive of excise duty. The excise duty is not separately billed to customers.

113


Year ended

Year ended

Year ended

Year ended

Year ended

Year ended

Year ended

Year ended

March 31, 2017

March 31, 2017

March 31, 2017

March 31, 2017

March 31, 2016

March 31, 2016

March 31, 2016

March 31, 2016

30 Other Income

Interest Income:

- Deposits with banks

- Income tax refund

- Loans to related parties (Refer Note 44)

- Others

Provision for Contingency no longer required written back (Net) (Refer Note 20)

Recoveries of expenses from related parties

Gain on forward contracts not designated as hedges (Net)

Unwinding of interest on deposits / retention money / employee loans

Profit on sale / disposal of property, plant and equipment

Others

31 Cost of material consumed

Raw material, components and spare parts

Opening stock

Add : Purchases during the year

Less: Closing stock

6,836 7,977

189 283

2,755 1,379

14 10

898 -

345 304

- 4

103 62

50 33

- 40

11,190 10,092

8,211 7,836

60,500 43,818

10,246

8,211

58,465

43,443

32 Changes In Inventories Of Work-In-Progress

Opening Stock

Components for Elevators Constructions

147 191

Less: Closing Stock

Components for Elevators Contructions 273 147

(126) 44

33 Employee Benet Expenses

Salaries, Wages, Allowances, Bonus and Benefits (Net) 24,192 22,399

Contribution to Provident and Family Pension Scheme 1,195 1,165

Contribution to Superannuation Scheme 170 168

Contribution to Gratuity Fund 587 599

Contribution to Employees' State Insurance and Employees' Deposit Linked Insurance Scheme 67 82

Share-based payment to employees (Refer Note 54) 389 214

Workmen and staff welfare expenses 932 941 27,532 25,568

*Amount below rounding off norms adopted by the company

114



Year ended Year ended

March 31, 2017 March 31, 2016

I Dened Contribution Plans

a. Superannuation Fund

b. State Defined Contribution Plans

- Employers’ Contribution to Employees State Insurance

- Other contribution plan

Amount recognised in the Statement of Profit and Loss

(i) Employers' Contribution to Superannuation 170 168 (ii) Employers' Contribution to Employees State Insurance and Employees'

Deposit Linked insurance scheme 67 82 (iii) Labour Welfare Fund * * (ii) Contribution to Provident and Family Pension Scheme 1,195 1,165

* Amounts below rounding off norms adopted by the company.

II Dened Benet Plans

i) Gratuity

A) The amounts recognised in the balance sheet and the movements in the net defined benefit obligation overthe year are as follows:

Particulars

PresentValue of

Obligation

Fair Valueof PlanAssets

Balance as on 1 April 2015 7,240

5,610

Interest cost 579

449Current service cost 461

Total amount recognisedin prot or loss 1,040

449

Actuarial (Gains)/Losses on Obligations -Due to Change in Financial Assumptions 245

Actuarial (Gains)/Losses onObligations - Due to Experience 94

Expected Return on Plan Assets

94

Total amount recognised inother comprehensive income 339

94

Contributions by employer

1,630Benefit Paid (319)

(319)Balance as on 31 March 2016 8,299

7,464

Funded Plan

Net denedbenet (asset)liability

PresentValue of

Obligation

1,630

130

461

591

244

94

(94)

244

(1,630)

-

835

41

3

5

8

(2)

-

-

(2)

-

(4) 43

Unfunded Plan

1,432 1,415

115

835

63

516

579

259

(363)

(86)

(190)

(835)

- 389


Particulars PresentValue of

Obligation

Fair Valueof PlanAssets

Balance as on 31 March 2016

Interest cost

Current service cost

Total amount recognisedin prot or loss

Actuarial (Gains)/Losses on Obligations -Due to Change in Financial Assumptions

Actuarial (Gains)/Losses onObligations - Due to Experience

Expected Return on Plan Assets

Total amount recognised inother comprehensive income

Contributions by employer

Benefit Paid

Balance as on 31 March 2017

Funded Plan

Net denedbenet (asset)liability

PresentValue of

Obligation

Unfunded Plan

8,299

627

516

8,872

1,143

259

(363)

-

(104)

-

(466)

7,464

564

564

-

86

86

835

(466)8,483

43

3

5

8

-

(6)

-

(6)

-

(1)44

The net liability disclosed above relates to funded and unfunded plans as below:B)

Present Value of funded obligationas at the year end (8,299)

Fair Value of Plan Assets asat the year end 7,464Funded Status (835)

Present Value of unfunded Obligationas at the year end

-

Unfunded Net Liability recognisedin Balance Sheet (835)

ParticularsAs at

March 31,2017

(8,872)

8,483(389)

-

(389)

(7,240) (44) (43) (41)

5,610(1,630) (44) (43) (41)

-

(1,630) (44) (43) (41)

Unfunded PlanAs at

March 31,2016

As atApril 1,

2015

As atMarch 31,

2017

As atMarch 31,

2016

As atApril 1,

2015

Funded Plan

C) Amount recognised in the Balance Sheet

Present Value of Obligationat the end of the year

(8,299)

Fair value of plan assetsat the end of the year 7,464

Liability recognised in the Balance Sheet

(8,872)

8,483

(389) (835)

Particulars

(7,240) (44) (43) (41)

5,610 - - -

(1,630) (44) (43) (41)

As atMarch 31,

2017

As atMarch 31,

2016

As atApril 1,

2015

As atMarch 31,

2017

As atMarch 31,

2016

As atApril 1,

2015

Unfunded PlanFunded Plan

-

116



D) Actuarial assumptions

As at

March 31, 2017

As at

March 31, 2016

Discount Rate (per annum) 7.12% 7.56%

Rate of increase in Salary 10.00% 10.00%

Rate of Return on Plan Assets 7.12% 7.56%

Valuation in respect of Gratuity has been carried out by an independent actuary, as at the Balance Sheet date, based on the following assumptions:

As at

March 31, 2017

As at

March 31, 2016

7.00% 7.50%

9.00% 9.00%

- -

Unfunded PlanFunded Plan

- The discount rates reflects the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligation.

- The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand and the employment market.

E) Sensitivity analysis

Discount Rate (0.5 % movement)

Compensation levels (0.5 % movement)

Employee turnover (0.5 % movement)

Increase

(294)

303

(56)

Decrease

313

(287)

59

Increase

(276)

286

(44)

Decrease

294

(271)

47

Increase Decrease Increase Decrease

Discount rate (1% movement) (41) 46 (41) 47

Compensation levels (1% movement) 46 (41) 47 (41)

Employee turnover (-/+50%) (42) 46 (44) 47


Funded Plan

Unfunded Plan

Impact on dened benet obligation of Gratuity (In Rs. Lakhs)

As at March 31, 2017 As at March 31, 2016

Impact on dened benet obligation of Gratuity (In Rs. Lakhs)


Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligations as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

As atApril 1, 2015Particulars

F) The major categories of plan assets for gratuity are as follows:

Amount %

Debts Instruments:

Central Government Securities

State Government Securities

Corporate Bonds

Investment Funds:

Special Deposits Scheme

Insurance managed funds

Others:

Cash and cash equivalents (Net)Total

8

3

22

3

53

11

652

242

1,856

273

4,492

968 8,483 100

As atMarch 31, 2017

Funded Plan

As atMarch 31, 2016

Amount % Amount %

605

340

2,102

273

3,924

220 7,464

8

5

28

4

53

3100

594 11

415 7

2,383 42

273 5

1,726 31

219 4

5610

100

117

J) Risk exposure

Through its defined benfit plans, The group is exposed to a number of risks, the most significant of which are detailed below:


G) Recognised under: March 31, 2017

March 31, 2017

March 31, 2016

March 31, 2016

Non-current employee benefit obligations [Refer Note 21(a)] 40 89

Current employee benefit obligations [Refer Note 21(b)] 393 789

H) Particulars

Expected gratuity contribution for the next year 838 785

April 1, 2015

April 1, 2015

957

714

711

Funded Plan

Unfunded Plan

I) Dened benet liability and employer contributions

The weighted average duration of the defined benefit obligation is 8 years (March 31, 2016 – 8 years, April 1, 2015 - 8 years). The expected maturity analysis of undiscounted gratuity is as follows:

Particulars

Particulars

Less than

Less than

a year

a year

Between

Between

2 - 5 years

2 - 5 years

March 31, 2017

March 31, 2017



764

1

3,089

19

March 31, 2016

March 31, 2016



685

-

2,892

22

April 1, 2015

April 1, 2015

Over 5

Over 5

years

years

Total

Total



609

-

2,505

9

12,620

21

16,473

41

12,450

19

16,027

41

10,890

28

14,004

37

Asset Volatility The plan liabilities are calculated using a discount rate set with reference to market yield of Government securities as at the Balance Sheet date; if plan asset underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grade and in Government of India securities, Group Gratuity Scheme of Life Insurance Corporation of India, Public Sector Undertaking Bonds, Special Deposit Scheme and Other Securities. These are subject to interest rate risk and the funds manages interest rate risk. The group has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The management intends to maintain the above investment mix in the continuing years.

Changes in yields

A decrease in yields of plan assets will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' holdings.

ii) Provident Fund The group has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates

on an annual basis.These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by The group has been higher in the past years.The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the below provided assumptions there is no shortfall as at March 31, 2017 and March 31, 2016 and April 1, 2015, respectively.

118



The details of fund and plan asset position are given below:

As at As at

March 31, 2017 March 31, 2016

Plan assets at period end, at fair value 27,154

24,056

Present value of benefit obligation at period end (27,154)

(24,056)

Asset recognized in balance sheet -

The plan assets have been primarily invested in government securities.

ParticularsFunded Plan

-

As at

April 1, 2015

21,214

(21,214)

-

Assumptions used in determining the present value obligation of the interest rate guarantee under the Deterministic Approach:

7.12% 7.56%5 years 5 years8.65% 8.80%

Government of India (GOI) bond yield

Remaining term to maturity of portfolio

Expected guaranteed interest rate - First year :

- Thereafter : 8.65% 8.65%

7.90%

5 years

8.75%

8.65%

As at As at

March 31, 2017 March 31, 2016

ParticularsFunded Plan

As at

April 1, 2015

The group contributed Rs. 1,195 lakhs and Rs. 1,165 lakhs to the provident fund during the years ended March 31, 2017 and March 31, 2016, respectively and the same has been recognised in the Consolidated Statement of Profit and Loss under the head Employees Benefit Expenses (Refer Note 33).

III) The Liability for leave encashment and compensated absences as at year end is Rs. 2,697 lakhs (March 31, 2016 - Rs. 2,417 lakhs and April 1, 2015 - Rs. 1,849 lakhs).

Year ended

Year ended

Year ended

Year ended

March 31, 2017

March 31, 2017

March 31, 2016

March 31, 2016

34 Interest expense

Unwinding of discount on Product Upgradation Provision

Interest on Borrowings

Interest expense on delayed payments of taxes

Interest - others

35 Depreciation And Amortisation Expense

Depreciation of Property, Plant and equipment

Amorisation of Intangible Assets

47 21

16 13

- 52

9 6 72 92

1,279 1,376

1 * 1,280 1,376

*Amount below rounding off norms adopted by the group

119


36 Operating and other expenses

Consumption of stores and consumables 1,352

Packing and forwarding charges 3,633

Repairs and maintenance:

- Buildings 258

- Plant and machinery

- Vehicles

- Others 417

Rent (Refer Note 38) 1,933

Rates and Taxes 644

Insurance 680

Power and fuel 412

Expenses on contracts for installation/ service 4,920

Advertising, publicity and sales promotion 303

Commission 611

Commission to Non-Executive Directors

Royalties 4,370

Communication costs 395

Travelling and conveyance 2,235

Printing and stationery 363

Legal and professional charges [Refer Note (i) below] 1,477

Housekeeping Expenses

Provision for Loss on contracts

System and software maintenance expenses 1,406

Bad trade receivables and other financial assets written off 1,878

Less: Withdrawn from doubtful debts and receivable provision (1,430)

448

Bad non-financial assets written off

Less: Withdrawn from doubtful receivable provision

Provision for trade receivables and other financial assets 488

Provision for non-financial assets 111

Provision for product upgradation (Refer Note 20) 444

Provision for contingency (Refer Note 20)

Directors' fees

Expenditure towards Corporate Social Responsibility activities [Refer Note (ii) below] 362

Loss on fluctuation in foreign exchange 628

Miscellaneous expenses TOTAL 28,094

(i) Legal and professional charges includes auditors' remuneration (net of taxes, where applicable):

For statutory audit

For tax audit

For other services

Reimbursement of expenses

924

2,090

242

91 62

40 40

555

1,747

330

348

394

3,626

314

410

12 8

3,855

322

2,129

351

1,156

11 9

11 4

1,699

1,001

(724)

277

12 -

(12) -

- -

2,053

27

2,112

- 147

2 2

343

695

37 93 26,368

55 55

8 8

13 8

4 380 74

Year ended Year ended

March 31, 2017 March 31, 2016

120



(ii) Corporate Social Responsibility Expense

(a) Gross amount required to be spent by the group during the year was Rs. 359 lakhs (Previous Year Rs. 343 Lakhs)

(b) Amount spent during the year on:

Paid during the year Yet to be paid

(i) Construction/acquisition of any asset

(ii) On purposes other than (i) above Rs. 361 Lakhs(Previous yearRs. 343 Lakhs)

Total

---

Rs.1 Lakh(Previous yearRs. Nil)

Rs. 362 Lakhs(Previous yearRs. 343 Lakhs)

Particulars

37 Earnings per share [Refer Note 3(n)]

Particulars

Profit attributable to the owners of the company

Weighted Average number of Equity Shares ofRs. 10 each during the year Earnings Per Share (Basic and Diluted)

Nominal Value of an Equity Share

38 Operating Leases [Refer Note 3(i)]

Total future minimum lease payments in respect of the above mentioned premises being:

Particulars

For the year

endedMarch 31, 2017

Amount

For the year

endedMarch 31, 2016

Amount

Not later than one year 33 195

Later than one year and not later than five years 31 6

Later than five years

Lease payments recognised in the Statement of Profit and Loss during the year 1,933 1,747

The Company does not have any outstanding potential equity shares. Consequently, the basic and the diluted earnings pershare of the Company remain the same.

The Group has entered into non-cancellable operating leases for warehouse and office premises for a primary period of 5 to 10 years. The Company has given refundable interest free security deposits under the agreements. Certain agreementscontains provision for renewals.

Year ended

March 31, 2017

Year ended

March 31, 2016

14,009 12,826

1,18,08,222 1,18,08,222 118.64 108.60

10 10

39 Segment Information Information about Primary Business Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company has identified the following segments i.e. (i) Contract for supply and installation of elevators, escalators and trav-o-lators and (ii) services for maintenance, repairs and modernization of elevators and escalators as reporting segments based on the information reviewed by CODM. The above business segments have been identified considering:a) the nature of products and servicesb) the differing risks and returnsc) the internal organisation and management structure, andd) the internal financial reporting systems.

The segment information presented is in accordance with the accounting policies adopted for preparing the consolidated financial statements of the Company.

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

121

New Equipment Service Total

73,613 54,892 1,28,505 55,649 52,472 1,08,121External Revenue

898

- 898 - - - Other Income

10,292 10,092

(310) (715)

Unallocable Income /(Expenses)

Other Income

Other Expenses

1,073 207 1,280 1,047 330 1,376

- -

Depreciation

Segment Depreciation

Unallocable Depreciation

1,928 (838) 1,090 3,184 1,078 4,262

322 1,149

Non Cash Expenses otherthan Depreciation

Segment Non Cash Expenditure

Unallocable Non Cash Expenditure


Particulars

New

Equipment Service Total

Installation Installation

2016-17

Rupees in Lakhs

2015-16

73,613

54,892 1,28,505 55,649 52,472 1,08,121

-

- - - - -

Revenue

Segment Revenue

Inter-segment Revenue

21,537 19,050 Prot Before Taxation

1,280 1,376 Total Depreciation

1,412 5,411Total Non Cash Expenditureother than Depreciation

Information about major customers There is no single customer which contributes more than 10% of the Company's total revenues.

40 Research and development expenses [Refer Note 3 (g)] The Cost of Material Consumed, Employee Benefits Expense, Depreciation and Other Expenses shown in the Statement of

Profit and Loss include Rs. 1,340 lakhs (Previous Year Rs. 1,293 lakhs) in respect of the research activities undertaken during the year.

41 The group has carried out an independent review for assessing compliance up to March 31, 2016 with the “Transfer Pricing

Rules, 2001” issued by the Central Board of Direct Taxes of India and no deviations were observed from the requirements of the aforesaid Transfer Pricing Rules. The Company is yet to commission an independent review for assessing compliance for the year March 31, 2016 to March 31, 2017 with the aforesaid Transfer Pricing Rules. However, on the basis of self-assessment of the operations during the year, and the conclusion drawn on independent review of its operations in the previous financial year, the Management does not expect any significant deviations from the requirements of the aforesaid Transfer Pricing Rules.

(12,429) 23,984 11,555 (11,873) 21,546 9,673Segment Result

122



42 Financial instruments – Fair values and risk management A. Accounting classication and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in

the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value. When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. – Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. – Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). – Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

March 31, 2017

March 31, 2016

Note No.

Note No.

FVTPL

FVTPL

FVTOCI

FVTOCI

Amortised

Amortised

Cost

Cost

Financial assets

(i) Loans 6(a) and 6 (b) - - 73,097

(ii) Contract work-in-progress 12 - - 932

(iii) Trade receivables 13 (a) and 13 (b) - - 32,839

(iv) Cash and cash equivalents 14 - - 51,831

(v) Bank balance other than (iv) above 15 - - 90

(vi) Other financial assets (including non-current bank balance)

7 and 16 - - 4,628

(vii) Derivatives not designated as hedges

- Foreign exchange forward contracts 4 -

4 - 1,63,417

Financial liabilities

(i) Short term borrowings 23 - - 100

(ii) Trade and other payables 24 - - 20,797

(iii) Other financial liabilities 25 - - 286

(iv) Derivative liabilities

- Foreign exchange forward contracts 25 239 - -

239 - 21,183

Carrying amount

Carrying amount

Total

Total

73,097

932

32,839

51,831

90

4,628

4

1,63,421

100

20,797

286

239

21,422

Financial assets

(i) Loans 6(a) and 6 (b) -

(ii) Contract work-in-progress 12 -

(iii) Trade receivables 13 (a) and 13 (b) -

(iv) Cash and cash equivalents 14 - (v) Bank balance other than (iv) above 15 -


7 and 16 -

(vii) Derivatives not designated as hedges

- Foreign exchange forward contracts 4 4


(i) Short term borrowings 23 -

(ii) Trade and other payables 24 -

(iii) Others 25 -


- Foreign exchange forward contracts 25 103

103

- 14,294 14,294

- 1,282 1,282

- 32,483 32,483

- 1,07,143 1,07,143 - 62 62

- 3,426 3,426

4 - 1,58,690 1,58,694

- 100 100

- 17,048 17,048

- 155 155

103

- 17,303 17,406

16

16

123

Financial assets

(i) Loans

(ii) Contract work-in-progress

(iii) Trade receivables

(iv) Cash and cash equivalents

(v) Bank balance other than (iv) above



(i) Short term borrowings

(ii) Trade and other payables(iii) Other financial liabilities


- Foreign exchange forward contracts

6(a) and 6 (b)

12

13 (a) and 13 (b)

14

15

7 and 16

23

24

25

25

-

-

-

-

-

-

-

-

-

52 52

-

-

-

-

-

-

-

-

-

-

10,507

784

28,246

1,03,887

42

3,277

113

13,597

714

14,424

10,507

784

28,246

1,03,887

42

3,277

113

13,597

714

52 14,476


April 1, 2015

Note No. FVTPL FVTOCI Amortised

Cost

Carrying amount

Total

- - 1,46,743 1,46,743

B. Measurement of fair values i) Valuation processes The finance department of the group includes a team that carries out the valuations of financial assets and liabilities required for

financial reporting purposes.

ii) Fair value hierarchy No financial instruments are recognised and measured at fair value, except derivative contracts which are measured at fair value

through profit and loss. These derivative contracts are over-the-counter short term foreign exchange forwards that are not traded in an active market. Their fair valuation is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on entity-specific estimates and quotes recieved from the banks. Since all significant inputs required to fair value these derivative contracts are observable, the instruments are classified as level 2.

For all the financial assets and liabilities referred above that are measured at amortised cost, their carrying amounts are reasonable approximations of their fair values. The carrying amounts of loans, contract work in progress, trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial assets,are considered to be the same as their fair values due to their short term nature.

C Risk management framework The group's business activities expose it to a variety of financial risks, namely credit risk, liquidity risk and market risks. The

group's senior management and key management personnel have the ultimate responsibility for manageing these risks. The group has mechanism to identify and analyse the risks faced by the group, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the group's activities.

i Management of the credit risk Credit risk is the risk of financial loss to the group if a customer or counterparty to a financial instrument fails to meet its

contractual obligations. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit-worthiness of customers to which the group grants credit terms in the normal course of business.

Trade and other receivables The group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Concentrations of

credit risk with respect to trade receivables are limited, due to the group’s customer base being large. All trade receivables are reviewed and assessed for default on a regular basis. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low.

124



Exposures to customers outstanding at the end of each reporting period are reviewed by the group to determine incurred and expected credit losses. The group assesses and manages credit risk based on the group's credit policy. Under the group credit policy each new customer is analyzed individually for credit worthiness before the group's standard payment and delivery terms and conditions are offered. The group assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the group applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the group’s historical experience and informed credit assessment and including forward looking information.

The group's accounts receivable are geographically dispersed. The Management do not believe there are any particular customer or group of customers that would subject the group to any significant credit risks in the collection of accounts receivable.

Following is the movement in Provision for Expected Credit Loss on Trade Receivables:

Loans to related parties: The group has given unsecured loans to other group entities of United Technologies Corporation Inc. Based on letter of support

received from the parent companies of these group companies and considering the , the group perceives low credit risk pertaining to carrying amount of loans receivable from group companies, considering 12-month’s expected credit loss.

Cash and cash equivalents The group is also exposed to credit risks arising on cash and cash equivalents and term deposits with banks. The Company

believes that its credit risk in respect to cash and cash equivalents and term deposits is insignificant as funds are invested in term deposits at pre -determined interest rates for specified period of time. For cash and cash equivalents only high rated banks are accepted.

Derivatives The group may be exposed to losses in the future if the counterparties to derivative contracts fail to perform. The group is

satisfied that the risk of such non-performance is remote due to its monitoring of credit exposures. Additionally, the group enter into master netting agreements with contractual provisions that allow for netting of counterparty positions in case of default.

Other Financial Assets: The group periodically monitors the recoverability and credit risks of its other financials assets including employee loans, deposits

and other receivables. The group evaluates 12 month expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the group considers life time expected credit losses for the purpose of impairment provisioning.

Following is the movement in Provision for Expected credit loss on Other nancial assets:



Particulars Year endedMarch 31, 2016

6,258 (930) 5,328

5,120 1,138 6,258



Security DepositsYear ended

March 31, 2016

622(11)611

426196622

125

ii. Liquidity risk Liquidity risk is the risk that the group will face in meeting its obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The group maintained a cautious funding strategy, with a positive cash balance throughout the years. This was the result of cash delivery from the business. Cash flow from operating activities provides the funds to service the working capital requirement. Accordingly, low liquidity risk is percieved." Exposure to liquidity risk The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.


Particulars

Funded Plan

Carryingamount


Non-derivative nancial liabilities

Short term borrowings

Trade payables

Other financial liabilitiesDerivative Financial Liabilities


March 31, 2016



Trade payables



April 1, 2015



Trade payables



100

20,797

286

239

100

17,048

155

103

113

13,597

714

52

100

20,797

286

239

100

17,048

155

103

113

52

100

286

239

100

17,048

155

103

113

52

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- -

Total Less than1 year

1- 5 years More than5 years

13,597

714

20,797

13,597

714

126


iii. Market risk The group’s size and operations result in it being exposed to foreign currency risk. The foreign currency risk may affect the group’s income and expenses, or its financial position and cash flows. The objective of the group’s management of foreign currency risk is to maintain this risk within acceptable parameters, while optimising returns. The group manages currency exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are fully covered with strict limits placed on the amount of uncovered exposure, if any, at any point in time. The group’s exposure to, and management of this risks is explained below:

The details of forward contracts outstanding as at the balance sheet date are as follows:


Particulars

Particulars

March 31, 2017

March 31, 2017

March 31, 2016

March 31, 2016

April 1, 2015

April 1, 2015

Number ofcontracts

Import contracts

EUROJPYUSDCHFCNHSGDHKD

ReceivablesUSDPayablesUSDEUROSGDHKDJPYCNHCHF

Export contracts

Foreigncurrency

Foreigncurrency

Amount

Amount

Number ofcontracts

Foreigncurrency

Foreigncurrency

Amount

Amount

Number ofcontracts

Foreigncurrency

Foreigncurrency

Amount

Amount

13 6 4 4

10 - 1

2 1 74 6 - - -2 120

40 706

6 1

284 - 1

10

12 - * 9 - - -

627

764 - *

73 - - -

5

6 8 -

18 -

23 -

316

374 631

- 158

- 232

-

10

20 7 *

12 54

* *

617

1,240 497

2 99 28

* 27

2,911 433 412

93 2,770

- 12

6,631

7 7

17 2

17 1 -

12 660

14 1

93 * -

988 405

1,011 50

997 5 -

3,456

2 2 3 - - - -

5 74 15

- - - -

367 40

970 - - - -

1,377

USD

74 - -120

The group's exposure to foreign currency risk at the end of the reporting period expressed in INR lakhs, are as follows:

Sensitivity analysis A 10% strenghtening / weakening of the respective foreign currencies with respect to functional currency of group would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out based on the exposures as of the date of statements of financial position.

Statement of Prot or loss (Amount)

* Amounts are below rounding off norms adopted by the group

CurrenciesUSDEUROSGDHKDCNH

March 31, 2017 March 31, 2016

14 - 0 7 -

21

6 63

- 16 23

108

127

43 A INCOME TAX EXPENSE

Amounts recognised in Statement of Prot and Loss

Income tax expense

Current tax

Current tax on profits for the year 8,800 7,420

Adjustments for current tax of prior periods (29) (777)

Total current tax expense 8,771 6,643

Defered tax

(Decrease) increase in deferred tax liabilites (1,101) (270)

Total deferred tax expense/(benefit) (1,101) (270)Income tax expense 7,670 6,373


Year ended

Year ended

Year ended

Year ended

March 31, 2017

March 31, 2017

March 31, 2016

March 31, 2016

B Amounts recognised in other comprehensive income

Remeasurements of defined benefit liability / (asset)

Remeasurements of defined benefit liability / (asset)

For the Year ended 31 March, 2016

For the Year ended 31 March, 2017

Before taxTax expense /

(benet)

(196)

(196)

Net of tax

66 (130)

66 (130)

Before taxTax expense /

(benet)

243 243

Net of tax

(85) 158 (85) 158

C Reconciliation of effective tax rate

Prot before tax

Tax using the Company’s domestic tax rate (Current year 34.61 % and Previous Year 34.61%)

Add Tax Effect on amounts which are not deductible(taxable) in calculating taxable income:

Adjustments for current tax of prior periods

Interest on delayed payments of taxes

Share based payments

Deferred Tax on undistributed Profits of an Associate

Tax losses for which no deferred income tax was recognised

Others

21,679 19,199

7,503 6,645

(29) (777)

- 18

134 74

29 30

74 28

(40) 356

7,670 6,373

128



Deferred Tax Assets/(Liabilities)

Deferred Tax Assets/(Liabilities)

Financial Year

March 31, 2017

March 31, 2016


Provision for doubtful debts/advances

Provision for Compensated Absences and Gratuity

Voluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961

DepreciationProvision for ContingencyDeferred Revenue

Provision for foresseable losses on contractsDeferred RevenueDeferred Tax AssetsDepreciationDividend Distribution Tax on undistributed profit of associateNet tax assets

Provision for doubtful debts/advancesProvision for Compensated Absences and Gratuity

Voluntary Separation PlanProvision for Product UpgradationDisallowances under Section 40(a) of the Income Tax Act, 1961DepreciationProvision for Contingency

Deferred RevenueDeferred Tax AssetsDepreciationDividend Distribution Tax on undistributed profit of associateNet tax assets

2009-102010-112011-122012-132013-142014-152015-162016-17

Net balanceApril 1, 2016

Net balanceApril 1, 2015

Recognised inprot or loss

Recognised inprot or loss

Recognisedin OCI

Recognisedin OCI

Unused tax Losses

Other

Other

Potential taxbenet

Net

Net

Unused tax Losses

Deferredtax asset

Deferredtax asset

Potential taxbenet

Deferredtax liability

Deferredtax liability

Year ofExpiry

2,723

831

262 810 135

64 6,048

-

- 538

11,411 -

(31) 11,380

2,206 1,177

369

551 133

- 6,429

207

11,072 (46)

(1) 11,025

(304)

295

(94) (102)

-

85 (940)

-

2,667 (476) 1,130

- (29)

1,101

517 (431)

(107) 259

2 64

(381)

331 254

46 (30) 270

2,419

1,060

168 708 135

149

5,108 -

2,667

62 12,475

- (60)

12,415

2,723 831

262 810 135

64 6,048

538 11,411

- (31)

11,380

50 14

101 58 35 14 59

-

2,419

1,060

168 708 135

149

5,108 -

2,667

62 12,475

- -

12,476

2,723 831

262

810 135

64 6,048

538

11,411 - -

11,411

154

311811

418

-

-

-

- - -

- - -

- - - -

(60) (60)

- -

- - - - -

- - -

(31) (31)

March 31, 2018March 31, 2019March 31, 2020March 31, 2021March 31, 2022March 31, 2023March 31, 2024March 31, 2025

-

-

- - -

- - -

- - - - - -

- -

- - - - -

- - - - -

15 4

31 18 11

4 18 47

-

(66)

- - -

- - -

- -

(66) - -

(66)

- 85

-

- - - -

- 85

- -

85

50 14

101 58 35 14 59

153

D Movement in deferred tax balances

D Movement in deferred tax balances

Deferred Tax Assets and Deferred Tax Liabilities have been offset because they related to the same governing taxation laws.

E. Unused tax losses for which no deferred tax asset has been recognised.


129


44 Related Party Disclosures

A Relationships: (I) Where Control Exists United Technologies Corporation Inc., United States United Technologies South Asia Pacific Pte Ltd, Singapore (Formerly known as Singapore Holdco. Pte. Ltd, Singapore)

Ultimate Holding CompanyHolding Company

(II) Associate Company

Trio Elevators Co (India) Limited, India

(III) Parties Under Common Control with whom transactions have taken place during the year.

Buga Otis Asansor Sanayi Ve Ticaret A.S.,TurkeyCarrier Air Conditioning & Refrigeration R&D Management (Shanghai) Co. Ltd.,ChinaCarrier Airconditioning & Refrigeration Limited, IndiaCarrier Race Technologies Private Limited, IndiaCarrier Singapore (PTE) Limited, SingaporeChubb Alba Control Systems Limited, IndiaConcepcion-Otis Philippines, Inc., PhilippinesElevators (Private) Limited, Sri LankaGuangzhou Otis Elevator Company Ltd, ChinaJSC MOS OTIS RussiaNippon Otis Elevator Company, JapanOtis A.S., Czech RepublicOtis AS, NorwayOtis Electric Elevator Co., Ltd., Chin a (Formerly known as Xizi Otis Elevator Co., Ltd., China)Otis Elevator (China) Co., ChinaOtis Elevator Co Pty Ltd, AustraliaOtis Elevator Company (H.K.) Limited, Hong KongOtis Elevator Company (M) SDN BHD, MalasiyaOtis Elevator Company (S) Pte. Ltd., SingaporeOtis Elevator Company Ltd, ThailandOtis Elevator Company Saudi Arabia Limited, Saudi ArabiaOtis Elevator Company, New Jersey, United StatesOtis Elevator Traction Machine (China) Co. Ltd., ChinaOtis Elevator VietNam Company Limited, VietnamOtis Elevator Worldwide SPRL,Belgium Otis Elevator, KoreaOtis Elevators International Inc., Hong KongOtis GMBH & Co. OHG, GermanyOtis High-Rise Elevator(Shanghai) Co., Ltd., ChinaOtis L.L.C., U. A. E.OTIS SCS, FranceP.T.Citas Otis Elevator, Indonesia Seral Otis Industria Metalurgica Ltda, ChileSigma Elevator (M) SDN BHD, MalasiyaSigma Elevator Singapore Pte Ltd,Singapore United Technologies Corporation India Private Limited, IndiaUTC Building & Industrial Systems EMEA SAS, FranceUTC Fire & Security India Limited, IndiaZardoya Otis S.A., Spain

(IV) Key Managerial Personnel

Sebi JosephPedro Silva Ribeiro Geada Marcal (Till June 29, 2015)Puthan Naduvakkat SumaPriya Shankar DasguptaRam Sukhraj Tarneja (Till August 07, 2015)Anil Vaish (From March 10, 2016)

Managing DirectorDirectorDirectorIndependent DirectorIndependent DirectorIndependent Director

130



(V) Transaction with Post Emploment benet entitiesOtis Elevator Company (India) Limited Employees' Gratuity FundOtis Elevator Company (India) Limited Staff Provident Fund

B Transactions:

(i) Transactions with parties referred to in (V) above

Total


Short term employee benfits: - Salaries and other employee benefitsPost employment benefits - gratuityLong term employee benefits- Compensated absencesEmployee share-based paymentCommission and sitting fee to non executive directors

Particulars Year endedMarch 31, 2016

522 52 21 16 14

625

364 55 24 43

8

494


Particulars Category For the year ended

March 31, 2017

Purchase of Goods and Materials

Otis Elevator (China) Co., China III 393

Otis Electric Elevator Co., Ltd., China(Formerly known as Xizi Otis Elevator Co., Ltd., China)

III 3,315

Zardoya Otis S.A., Spain III 4,131

Otis GMBH & Co. OHG, Germany III 2,215

Otis Elevator Company, New Jersey, United States III 166

Otis Elevator Traction Machine (China) Co. Ltd., China III 30

Nippon Otis Elevator Company, Japan III 894

OTIS SCS, France III 228

Guangzhou Otis Elevator Company Ltd, China III 88

Otis High-Rise Elevator(Shanghai) Co., Ltd., China III 1,378

JSC MOS OTIS Russia III -

Otis A.S., Czech Republic III 8

Otis Elevator, Korea III -

Total 12,846


Zardoya Otis S.A., Spain III 20

Carrier Airconditioning & Refrigeration Limited, India III 11

Chubb Alba Control Systems Limited, India III 5

Total 36

System and Software Maintenance Expenses

Otis Elevator Company (S) Pte. Ltd., Singapore III 21


Otis Elevators International Inc., Hong Kong III 383

Total 892

For the year ended

March 31, 2016

314

1,056

2,029

1,039

137

290

275

162

1,570

6,954

392

398

831

49

3

29

1

4

30

26

60

40

131

Legal and Professional Expenses

Otis Elevator Company, New Jersey, United States III 11 17

United Technologies Corporation India Private Limited, India III 14 20

Total 25 36

Royalty Expenses

Otis Elevator Company, New Jersey, United States III 4,370 3,855

Total 4,370 3,855

Repairs and Maintenance - Others

Carrier Airconditioning & Refrigeration Limited, India III 26 20

Chubb Alba Control Systems Limited, India III 18 -

Total 43 20

Reimbursement of Expenses to related parties

Otis Elevator Company, New Jersey, United States III 44 229

Otis Elevator VietNam Company Limited, Vietnam III 1 -

OTIS SCS, France III 42 88

Otis Elevator Company (S) Pte. Ltd., Singapore III * 5

Otis Elevator Co Pty Ltd, Australia III * 4

Nippon Otis Elevator Company, Japan III - 2

Otis High-Rise Elevator(Shanghai) Co., Ltd., China III * 6

Carrier Airconditioning & Refrigeration Limited, India III - 2

Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey III - 1

Carrier Race Technologies Private Limited, India III * *

Carrier Air Conditioning &Refrigeration R&D Management(Shanghai) Co. Ltd.,China III - 8

United Technologies South Asia Pacific Pte Ltd, Singapore I 1 -

Otis AS, Norway III 2 -

Otis Elevator (China) Co., China III 10 - Total 99 346

Rent paid to Other Companies

Carrier Airconditioning & Refrigeration Limited, India III 73 64 Total 73 64

Revenue from Sale of Goods/Services

Otis Elevator Co Pty Ltd, Australia III - 4

Seral Otis Industria Metalurgica Ltda, Chile III 63 91

Otis Elevator Company (H.K.) Limited, Hong Kong III * *

Concepcion-Otis Philippines, Inc., Philippines III - 1

Elevators (Private) Limited, Sri Lanka III 978 49

P.T.Citas Otis Elevator, Indonesia III - 1 Total 1,042 146




March 31, 2017

For the year ended

March 31, 2016

132




March 31, 2017

For the year ended

March 31, 2016

Recovery from related parties

Otis Elevator Company, New Jersey, United States III

Sigma Elevator Singapore Pte Ltd,Singapore III

United Technologies South Asia Pacific Pte Ltd, Singapore I 300

Total 345

Recovery of expenses from related parties

Otis Elevator Company (M) SDN BHD, Malasiya III 102

Otis Elevator Company Ltd, Thailand III

Concepcion-Otis Philippines, Inc., Philippines III

Carrier Airconditioning & Refrigeration Limited, INDIA III

UTC Fire & Security India Limited, India III

Sigma Elevator (M) SDN BHD, Malasiya III


Chubb Alba Control Systems Limited, INDIA III

Carrier Race Technologies Private Limited, India III


United Technologies South Asia Pacific Pte Ltd, Singapore I

Otis L.L.C., U. A. E. III

Otis Elevator Company (S) Pte. Ltd., Singapore III

Otis Elevator, Korea III

Trio Elevators Co (India) Limited, India II

Otis Elevator (China) Co., China III

Otis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis Elevator Co., Ltd., China)

III

Carrier Air Conditioning &Refrigeration R&D Management(Shanghai) Co. Ltd.,China

III 115

Carrier Singapore (PTE) Limited, Singapore III

UTC Building & Industrial Systems EMEA SAS, France III


Otis Elevator Company Saudi Arabia Limited, Saudi Arabia III

Otis High-Rise Elevator(Shanghai) Co., Ltd., China III

Otis Elevators International Inc., Hong Kong III

Otis Elevator Worldwide SPRL,Belgium III

P.T.Citas Otis Elevator, Indonesia III

Others III

Total 858

38 *

7 -

304

304

-

1 -

59 -

57 -

* -

* -

1 -

* -

* -

114

11 21

7 7

4 4

- 2

- 14

3 13

* 14

131

3 17

- 140

41

3 3

- 2

- 2

61 -

1 -

- 2

528

133

Recovery of rent from related parties(netted off from rent expense)


Carrier Race Technologies Private Limited, India III 15 10

Chubb Alba Control Systems Limited, India III 35 25

UTC Fire & Security India Limited, India III 29 21

Total 222 196

Inter Corporate Loan Given / (Repaid) (Net)

UTC Fire & Security India Limited, India III 5,450 2,300

Chubb Alba Control Systems Limited, India III 53,612 115

Carrier Race Technologies Private Limited, India III - 1,530

United Technologies Corporation India Private Limited, India III (235) (47)

Total 58,827 3,898

Interest on Inter Corporate Loan Given

UTC Fire & Security India Limited, India III 1,661 1,047

Chubb Alba Control Systems Limited, India III 715 100

Carrier Race Technologies Private Limited, India III 366 204

United Technologies Corporation India Private Limited, India III 13 28

Total 2,755 1,379

Interest Expense on Working Capital Loan


16 13Dividend paid during the year

United Technologies South Asia Pacific Pte Ltd, Singapore I 11,020 6,380

Total 11,020 6,380



March 31, 2017

For the year ended

March 31, 2016

Outstanding Balances Balance as at

March 31, 2017

Loan Receivable

UTC Fire & Security India Limited, India III 15,430

Carrier Race Technologies Private Limited, India III 2,930

United Technologies Corporation India Private Limited, India III

Chubb Alba Control Systems Limited, India III 54,577

Total 72,937

Accrued Interest on Inter Corporate Deposit (net of TDS)

UTC Fire & Security India Limited, India III 1,495


Chubb Alba Control Systems Limited, India III 644

Carrier Race Technologies Private Limited, India III 330

Total 2,468

Balance as at

March 31, 2016

Balance as at

April 1, 2015

9,980 7,680

2,930 1,400

- 235 282

965 850

14,110 10,212

942 571

- 4 -

- -

- 21

946 591

Category

134




March 31, 2017

Balance as at

March 31, 2016

Balance as at

April 1, 2015 Category

Loan Payable:

Carrier Airconditioning & Refrigeration Limited, India III 100

Total 100

Interest accrued and due on Working Capital Loan

Carrier Airconditioning & Refrigeration Limited, India III

Total

Payables

Otis Elevator Company, New Jersey, United States III 1,099



OTIS SCS, France III 173

Otis AS, Norway III

Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey III


Zardoya Otis S.A., Spain III 1,277

Otis GMBH & Co. OHG, Germany III 807


Guangzhou Otis Elevator Company Ltd, China III

Otis High-Rise Elevator(Shanghai) Co., Ltd., China III 271

Otis Elevator (China) Co., China III 135

Otis Elevator Traction Machine (China) Co. Ltd., China III

Otis A.S., Czech Republic III

Otis Electric Elevator Co., Ltd. III 2,131

Otis Elevator VietNam Company Limited, Vietnam III


Carrier Air Conditioning &Refrigeration R&D Management(Shanghai) Co. Ltd.,China

III



Pratt & Whitney, U. S. A. III

Total 6,422

100 100

100 100

4 1 -

4 1 -

1,001 1,090

85 158 99

* 5 -

176 156

- 2 -

- 1 -

13 25 25

821 256

360 315

363 40

23 56 109

508 173

167 324

18 20 -

4 3 12

561 343

1 - -

- * -

- 8 -

1 - -

- - 18

- 7 7

4,243 2,967

Receivables

Trade Recievables:

Elevators (Private) Limited, Sri Lanka III 39 - -

135

Other Financial Assets:




Otis Elevator Company, Kuwait III

P.T.Citas Otis Elevator, Indonesia III

Otis Elevator, Korea III

Concepcion-Otis Philippines, Inc., Philippines III

Otis Elevator Company (M) SDN BHD, Malasiya III

Seral Otis Industria Metalurgica Ltda, Chile III

Zayani Otis Elevator Company W.L.L., Bahrain III

Otis Elevator Company Ltd, Thailand III

Otis Elevator Worldwide SPRL,Belgium III

Otis Elevator VietNam Company Limited, Vietnam III

Sigma Elevator (M) SDN BHD, Malasiya III


Trio Elevators Company (India) Limited, India II


Chubb Alba Control Systems Limited, India III

Nippon Otis Elevator Company, Japan III


UTC Fire & Security India Limited, India III

Otis Elevator (China) Co., China III

Otis High-Rise Elevator(Shanghai) Co., Ltd., China III

Otis Electric Elevator Co., Ltd. III

Otis Elevator Co Pty Ltd, Australia III

Otis Elevator Company, New Jersey, United States III

Otis Elevator Company Saudi Arabia Limited, Saudi Arabia III

Carrier Air Conditioning & Refrigeration R&D Management

(Shanghai) Co. Ltd.,China

III

Carrier Singapore (PTE) Limited, Singapore III

UTC Building & Industrial Systems EMEA SAS, France III

Total

Note:

For information on transactions with post employment benefit plans mentions in A (V) above, refer the Note 36.

*Amounts are below rounding off norms adopted by Group.



March 31, 2017

Balance as at

March 31, 2016

Balance as at

April 1, 2015 Category

112 87 427

1 4 1

- - 2

- - 1

1 * -

- - 2

11 - -

32 - -

34 - 34

- - 3

1 - -

59 - -

- - 1

* - -

8 - -

14 14 -

64 48 44

23 11 4

80 39 -

10 3 9

23 8 19

3 13 6

- 2 -

- 26 114

- 4 -

18 - 44

2 3 -

91 100 -

- 9 -

- 39 -

588 410 712

627 410 712

136


45 Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development

Act, 2006 (MSMED Act). The disclosures pursuant to the said MSMED Act are as follows:





Particulars

Principal amount due to suppliers registered under the 42 24

MSMED Act and remaining unpaid as at year end

Interest due to suppliers registered under the MSMED Act

and remaining unpaid as at year end 6 4

Principal amounts paid to suppliers registered under the 213 182

MSMED Act beyond the appointed day during the year

Interest paid, other than under Section 16 of MSMED Act - -

to suppliers registered under the MSMED Act beyond the

appointed day during the year

Interest paid, under Section 16 of MSMED Act to suppliers 1 *

registered under the MSMED Act beyond the appointed

day during the year

Interest due and payable towards suppliers registered 4 3

under MSMED Act for payments already made

Further interest remaining due and payable for earlier

years 17 12

2

2

10

-

*

1

-

*Amounts are below rounding off norms adopted by the group.

The above information regarding total outstanding dues to Micro Enterprises and Small Enterprises and that is given in Note 24 has been determined to the extent such parties have been identified on the basis of information available with the Group.

137


As at

March 31, 2017

As at

March 31, 2016

As at

April 1, 2015 46 Contingent Liabilities

a) Claims against the Group not acknowledged as debt

(i) Income-tax matters

(ii) Sales tax matters



(iii) Excise and Service Tax matters

Excise matters

- Show Cause Notices 44,601


Service Tax matters



b) Litigations / claims against the Group by customers / ex-employees / general public. 3,643

The Group has strong grounds of appeal and does not foresee any outflow in this regard.

c) Commitments

19,718

14 14 14

646 646 1,323

32,648 28,123

40,356 37,637

3,234 3,234

- 1,515 137

22,602 22,465

4,335 4,358

507 172 264

14,043 9,567

- Matters decided against the Group in respect of which the Group has preferrred an appeal.

The demand outstanding against the Group not acknowledged as debts and not provided for, in respect of which the Group is in appeal, pertains to litigations/ disputes with various Income Tax Authorities.The Group has strong grounds of appeal and does not foresee any outflow in this regard.

Note: 'Assessed Sales Tax liabilities of the Group not acknowledged as debts and not provided for, in respect of which the Group is in appeal pertains to litigations/ disputes with various Sales Tax Authorities. Based on opinion received from legal consultants, the Management is of view that the Group does not expect an outflow in this regard.

Excise and Service tax liabilities of the Group not acknowledged as debts and not provided for, in respect of which the Group is in appeal pertains to litigations/ disputes with various Excise and Service Tax Authorities. Based on opinion received from legal consultants, the Management is of view that the Group has strong grounds of appeal and does not foresee any outflow in this regard. Interest with respect to above matters has been considered to the extent quantified by the tax authorities.

i. Estimated amount of contracts [net of capital advances of Rs. 26 Lakhs (March 31, 2016 : Rs. 1 Lakhs, April 1, 2015 Rs. 204 Lakhs) remaining to be executed on Capital Account not provided for.

ii. Guarantees given by banks to various government departments and customers for specific business purpose. The Management is of opinion that there will be no impact on future cash flow of the Group.

138



The Group determines the capital requirements based on its financial performance, operating and long term investment plans. The funding requirements are met through operating cash flows generated. For the purpose of Group's Capital Risk Management, ""Capital"" includes issued equity share capital, securities premium and all other equity reserves attributable to it's shareholders.

The Group's objective in managing its capital is to safeguard its ability to continue as a going concern and to maximise shareholder's values.

The capital structure of the Group is based on management’s assessment of the appropriate balance of key elements in order to meet its strategic and day-to day needs. The Group considers the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue new shares.

The Group maintains a stable and strong capital structure with a focus on total equity so as to maintain shareholders and creditors confidence and to sustain future development and growth of its business. The Group takes appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The management monitors the return on capital as well as the level of dividends to shareholders. Refer table below for the dividends paid :

47 Capital Management

For the year endedMarch 31, 2017

Equity sharesInterim dividend Rs. 40 per fully paid shareFinal dividend for the year ended March 31, 2016 of Rs. 95(Previous year - Rs. 15) per fully paid share

Particulars For the year endedMarch 31, 2016

- 11,218

4,724 1,771

As atMarch 31, 2017

Dividends not recognised at the end of the reporting periodIn addition to the above, subsequent to the year end the directorsof the Group have recommended the payment of final dividend ofRs. Nil (March 31, 2016 - Rs. 95) per fully paid equity share.

Particulars As atMarch 31, 2016

- 11,218

48 Events Occuring after the balance sheet date: Subsequent to year end, the Board of directors of the Group have declared an interim dividend of Rs. 360 per share aggregating

Rs. 42,510 lakhs vide Board resolution dated July 06, 2017. The dividend distribution tax paid on these dividend is Rs. 8,654 lakhs.

Name of Entity

Place of busines/country of incorporation

Ownership interest held by theownership group

Supriya Elevator Company(India) Limited

31 March, 2017 31 March, 2016 1 April, 2015 31 March, 2017 31 March, 2016 1 April, 2015 Principal activities

India 100% 80% 80% - 20% 20%Manufacture,

erection, installation andmaintenance of elevators.

49 Interests in other entities

(a) Subsidiary

The group's subsidiary as at 31 March 2017 is set out below. Subsidiary has capital consisting solely of equity shares thatare held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group.

Ownership interest held bythe non-controlling interests

139


(b) Non-Controlling interests : Non-wholly owned subsidiary is not material during current as well as previous period. Therefore, financial information about non-

wholly owned subsidiary is not separately disclsoed. (c) Transaction with Non-Controlling interests : The group had acquired additional 19.98% equity stake in Subsidiary, Supriya Elevators Company (India) Liimited, on March 08,

2017. The carrying amount of 19.98% non-controlling interest acquired in subsidiary was negative Rs. 57 Lakhs. The group has adjusted the carrying amount of non-controlling interest of negative Rs. 57 Lakhs and consideration of Rs. 150 Lakhs paid towards acquisition of 19.98% stake in subsidiary, with equity attributable to owners of the parent.

Name of EntityPlace of

Business

Quoted fair value

Trio Elevators Co(India) Limited

31 March, 2017 31 March, 2016 1 April, 2015 31 March, 2017 31 March, 2016 1 April, 2015 Principal activities

India * * * 440 299 151 Manufacture, erection,

installation andmaintenance of elevators,

escalators and travolators.

Particulars

Carrying amount of non-controlling interests acquired. Consideration paid to non-controlling interests.

Excess of consideration paid recognised in retained earnings within equity.

As at31 March, 2017

As at31 March, 2016

(57)(150)

(207)

---

(d) Investment in associates :

% ofownership

InterestAccounting

Method

Carrying amount

* Unlisted entity - No quoted price available.

Name of the entity

Net Assets, i.e., total assets minus total liabilities

Share in prot or loss Share in Totalcomprehensive income

Parent (Indian)Otis Elevator Company (India) Limited31 March 201731 March 2016

Subsidiaries (Indian)Supriya Elevator Company (India) Limited31 March 201731 March 2016

Inter-company eliminations and consolidation adjustments31 March 201731 March 2016

Associate (Indian)Trio Elevators Co (India) Limited 31 March 201731 March 2016

Total31 March 201731 March 2016

As % ofconsolidated

net assetsAmount

As % ofconsolidated prot or loss

AmountAs %

of consolidated other

comprehensiveinocme

As %of consolidated

othercomprehensive

inocme

Amount

50 Dislosures mandated by schedule III of Companies Act 2013, by way of additional information

20% Equitymethod

Share in othercomprehensive income

Amount

100%100%

-1%-1%

0%0%

0%0%

100%100%

94,952 93,978

(784) (576)

(33) 15

440 299

94,575 93,716

100%95%

-2%-1%

1%4%

1%1%

100%100%

13,963 12,196

(212) (79)

116 560

142 149

14,009 12,826

96%101%

5%-1%

0%0%

-1%0%

100%100%

124 (160)

6 2

- -

(1) (1)

129 (159)

100%95%

-1%-1%

1%4%

1%1%

100%100%

14,087 12,036

(206) (77)

116 560

141 148

14,138 12,667

140


51 Offsetting nancial assets and nancial liabilities

The following table presents the recognized financial instruments that are subject to enforceable master netting arrangements and other similar agreements but not offset, as at March 31, 2017, March 31, 2016 and April 1, 2015.


Gross AmountsAmounts subjectto master netting

arrangementsNet Amount

Particulars









As at April 1, 2015Other nancial liabilities


4

239

4

103

52

(4)

(4)

(4)

(4)

-

-

235

-

99

52

Related amounts not offset

Master netting arrangements - not currently enforceable Agreements with derivative counterparties are based on ISDA Master Agreement. Under the terms of these arrangements, only

where certain credit events occur (such as default), the net position owing/receivable to a single counterparty in the same currency will be taken as owing and all the relevant arrangements terminated. As the group does not presently have a legally enforceable right of set-off, these amounts have not been offset in the balance sheet, but have been presented separately in the table above.

52 Employee share based payments Certain employees of the group have been granted Long-Term Incentive Plan (LTIP) namely - Stock Appreciation Rights (SAR),

Performance Stock Units (PSU), and Restricted Stock Units (RSU) by the Ultimate Parent Company United Technologies Corporation (UTC).

- SARs are the grant of a “right” to acquire UTC shares based on the appreciation in value of a fixed number of shares. - PSUs are units (representing one UTC Share) transferred to the employee subject to the satisfaction of certain performance

conditions. - RSUs are units (representing one UTC Share) transferred to the employee at the end of the vesting period. Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. LTIP

awards with performance based vesting generally have a minimum three-year vesting period and vest based on performance against pre-established metrics. The fair value of each option award is estimated on the date of grant using a binomial lattice model.

In accordance with Note 3 (j), the group has recognised an employee benefit expense towards share based payment of Rs. 387

lakhs (March 31, 2016: Rs 214 lakhs) with a corresponding increase in Other Equity as equity contribution from the Ultimate Holding Company.

141


53 Transition to Ind AS: These are the group’s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in Notes 2 and 3 have been applied in preparing the financial statements for the year ended

March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (the group’s date of transition). In preparing its opening Ind AS balance sheet, the group has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act ("Previous GAAP"). An explanation of how the transition from previous GAAP to Ind AS has affected the group’s financial position, financial performance and cash flows is set out in the following tables and notes.

A Exemptions and exceptions availed Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian

GAAP to Ind AS.

Ind AS optional exemptions 1) Deemed Cost Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as

recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Group has elected to measure all of its property, plant and equipment and other intangible assets at their

previous GAAP carrying value.

2) Share based payments A first-time adopter is not required to apply Ind AS 102 Share-based Payment to equity instruments that were vested on or

before the date of transition to Ind AS. Accordingly, the Group has accounted only for the unvested options granted by the parent outstanding as on transition date. 3) Business combinations "Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the

transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date."

The group elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated. The group has applied same exemption for investment in associates and subsidiary.

Ind AS mandatory exceptions 1) Estimates An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the

same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for impairment of financial assets based on expected credit loss model.

2) Classication and measurement of nancial assets Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and

circumstances that adjusts at the date of transition to Ind AS. 3) Non - Controlling interests Ind AS 110 requires entity to attribute the profit or loss and each component of other comprehensive income to the owners of the

parent and to the non-controlling interest. This requirement needs to be followed even if this result in the non-controlling interest having a defecit balance. Ind AS 101 requires the above requirement to be followed propsectively from the date of transition. Consequently, the group has applied the above requirement prospectively.

B Reconciliations between previous GAAP and Ind AS Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent

the reconciliations from previous GAAP to Ind AS.

142


As atApril 1, 2015

Description

Reconciliation of total Equity as per Previous GAAP and Ind AS

Total equity as per Previous GAAPAdd:Proposed dividends(including dividend distribution tax)

Finance income recognised on effectiveinterest rate basis on security deposits

Finance income recognised on effectiveinterest rate basis on Employee loans

Fair valuation of ProductUpgradation Provision

Less:

Impact due to change in Revenuerecognition policy in line with Ind AS

Allowance on account of expected creditlosses on trade receivables

Rent recognised over lease periodtowards interest free security deposits

Employee cost recognised overemployee loan period

Mark to Market adjustmenton derivative contractsOthersDeferred tax impact ofInd AS adjustments Deferred Tax Liability on DividendDistribution Tax on undistributedprofit of associate

Total

Total equity as per Ind AS

8

4

4

6

1

5

4

4

2

9


As atMarch 31, 2016


13,502

164

61

153

(1,531)

(419)

(122)

(70)

(100)

(17)

538

(31)

12,128

93,701

2,132

99

68

16

(534)

(318)

(120)

(79)

(27)

(24)

310

(1)

1,522

88,637

81,573 87,115

9

143

For the yearended March 31, 2016

Description

Reconciliation of total comprehensive income for the year ended March 31, 2016

Adjustments:

ADD:

Less:



Finance income recognised on effectiveinterest rate basis on security deposits 4 65

Finance income recognised on effectiveinterest rate basis on Employee loans 4 9

Fair valuation of Product Upgradation Provision 6 136

Remeasurements of the net defined benefit plans 3 242

Others 6

Impact due to change in Revenue recognitionpolicy in line with Ind AS 1 (996)

Allowance on account of expected credit losses on trade receivables 5 (102)

Rent recognised over lease period towardsinterest free security deposits 4 (2)

Employee cost recognised over employee loan period 4 (7)

Mark to Market adjustment on derivative contracts 2 (72)

Share based payments 7 (214)

Deferred Tax Liability on Dividend DistributionTax on undistributed profit of associate (30)

Deferred tax impact of Ind AS adjustments 9 143

Net Prot as per Ind AS for the year 12,823

Items that will not be reclassified to Statement of Profit and Loss -

Actuarial loss arising from remeasurementsof post employments benefits 3 (243)

Other comprehensive income, net of income tax (158)

Total comprehensive income as per Ind AS 12,664

Prot after tax as per previous GAAP 13,645

Particulars

Previous GAAPInd AS adjustmentsInd AS - Net cashflows

Net cashowfrom Operating

activities

Net cashow from Investing

activities

Net cashowfrom Financing

activities

Net increase/(decrease)in cash and

cash equivalents

Cash and cashequivalents asat April 1, 2015

Cash and cashequivalents as

at March 31, 2016

6,450 159

6,291

4,600 (125) 4,726

(7,796) 24

(7,820)

3,255 58

3,197

1,03,887 -

1,03,887

1,07,142 58

1,07,084

Cash ow reconciliation: The impact of Ind AS adoption on the Standalone Statement of cash flows for the year ended March 31, 2016

9 85 Deferred tax relating to this item

Share of other comprehensive income of associatesaccounted using equity method (1)

144



Notes to the reconciliation 1 Revenue "Along with sale of products, the group generally provides a free services/maintenance to its customers. Under previous GAAP,

provision was created for the expected cost of providing free services/ maintenance. Under Ind AS, instead of creating a provision towards cost of free services/ maintenance, fair value of revenue relating to free service/ maintence is deferred and recognised over the service period.

Further, under previous GAAP, revenue from repairs job was recognsied upon completion of job. Under Ind AS, revenue from repairs jobs is recognised under percentage of completion method."

2 Mark to market on forward contracts The group uses forward contracts to hedge its risks of net exposure associated with foreign currency fluctuations. Under previous

GAAP, the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, was amortised as expense or income over the life of the contract. Under Ind AS, all transactions have been marked to market at period end.

3 Remeasurement of post-employment benet obligations Under Ind AS, remeasurements of post employment benefits i.e. actuarial gains and losses and the return on plan assets,

excluding amounts included in the net interest expense on the net defined benefit liability, are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year.

4 Security deposits and Loans to employees Under the previous GAAP, interest free lease security deposits and employee loans were recorded at their transaction value.

Under Ind AS, all financial instruments are required to be measured at their fair value on initial recognition. Accordingly, security deposits and employee loans have been fair valued under Ind AS. Difference between transaction value and fair value has been recognised as prepaid expenses. Prepaid expenses is amortised over the lease term or loan term and notional interest income is recognised on security deposits and employee loans.

5 Trade Receivables Unlike the previous GAAP, the group has applied expected credit loss model for recognising allowance for doubtful debts, as per

the requirements of Ind AS 109.

6 Provisions Under the previous GAAP, discounting of provisions was not allowed. Under Ind AS, provisions are measured at discounted

amounts, if impact of time value is material. Accordingly, non-current provisions for Product Upgration have been discounted to their present values.

7 Employee share based payments The ultimate parent group has granted certain equity settled stock options to the senior employees of the group, without any

cross charge. Under Ind AS, cost of these stock options are recognised over the vesting period, based on their grant date fair value, with corresponding adjustment to equity.

8 Proposed dividend Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of

the financial statements were considered as adjusting events. Accordingly, provision for proposed dividends was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

9 Deferred taxes Under Ind AS, deferred tax has been recognised on the adjustments made on transition to Ind AS and undistributed profit of

associate.

10 Other comprehensive income Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a

standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as 'Other Comprehensive Income' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

11 Retained earnings Retained earnings as at Aprill 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

12 Bank Overdrafts Under Ind AS, bank overdrafts payable on demand and which form an integral part of the cash management process are

included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, bank overdrafts were considered as part of liabilities and movement in bank overdrafts were shown as part of Operating Activities.

145


54 Recent Accounting Pronouncements Standards issued but not yet effective: In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, 'Share-based Payment'. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of cash flows’ and IFRS 2, 'Share-based payment', respectively. The amendments are applicable to the company from April 1, 2017. Amendment to Ind AS 7: ‘Statement of cash flows’: The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Group is evaluating the requirements of the amendment and the effect on the financial statements. Amendment to Ind AS 102: The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes. It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The group is evaluating the requirements of the amendment and the effect on the financial statements. The notes are an integral part of the consolidated financial statements. For Price Waterhouse & Co Bangalore LLPFirm Registration No. 007567S/S-200012Chartered Accountants









146


Form AOC-1(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)

Statement containing salient features of the nancial statement of subsidiaries/associate companies/joint ventures







Part “A”: Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in Rs. Lakhs)

Details

Name of the subsidiary

Reporting period for the subsidiary concerned,if different from the holding company’s reporting period

Reporting currency and Exchange rate as on the last date ofthe relevant Financial year in the case of foreign subsidiaries

Share capital

Reserves & surplus

Total assets

Total LiabilitiesInvestments

Turnover(Loss) / Profit before taxation

Provision for taxation(Loss) / Profit after taxation

Proposed Dividend

% of shareholding

Supriya Elevator Company(India) Limited

NA

NA

ParticularsSI. No.

1

2

3

4

5

6

78

9

1011

12

13

14

269

(1053)

520

1304

0

1493

(208)

0

(208)

-

100Notes: 1 Names of subsidiaries which are yet to commence operations :None 2 Names of subsidiaries which have been liquidated or sold during the year : None

Notes: 1. Names of associates or joint ventures which are yet to commence operations: None 2. Names of associates or joint ventures which have been liquidated or sold during the year:None

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Latest audited Balance Sheet Date

Shares of Associate/Joint Ventures held bythe company on the year endNo.Amount of Investment in AssociatesExtend of Holding %Description of how there is significant influenceReason why the associate is not consolidatedNet worth attributable to shareholding as per latestaudited Balance Sheet as on 31st March 2016Profit/Loss for the year March 2017 ( Unaudited)Considered in ConsolidationNot Considered in Consolidation

Trio Elevators Co (India) Limited

31st March 2016

Name of associates

1

2,88,550 144

19.90Participation in the Board of Directors

NA

1,456

141 -

2

34

5

6

147

1) Name:______________________Address: ________________________________________________________ E-mail id ___________________________ or failing him2) Name:______________________Address: ________________________________________________________ E-mail id ___________________________ or failing him3) Name:______________________Address: ________________________________________________________ E-mail id ___________________________ or failing him

I/We, _______________________________being the Member(s) of__________________shares of the above named Company,hereby appoint:

E-mail ID:

Folio No/ Client Id:

Dp ID :

OTIS ELEVATOR COMPANY (INDIA) LIMITED Reg. Office: 9th Floor, Magnus Towers, Mindspace, Link Road, Malad (W), Mumbai – 400064, Maharashtra

Tel: 91-22-2844 9700/ 66795151 Fax: 91-22- 2844 9791 Website: www.otis.com

CIN: U29150MH1953PLC009158

PROXY FORM[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies

(Management and Administration) Rules, 2014]

and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 63rd Annual General Meeting of the Company, to be held on Friday, September 22, 2017, at 10:30 am at Senate 2, Grand Sarovar Premiere, A. K. Plaza, Veer Savarkar Flyover, S. V. Road, Goregaon (W), Mumbai – 400 062, and at any adjournment thereof in respect of such resolutions as are indicated below:

Name of the Member(s):

Registered Address:

Signed this day of 2017 Signature of Shareholder

Signature of st1 Proxy holder Signature of nd 2 Proxy holder Signature of rd3 Proxy holder

Affix Re.1RevenueStamp

Notes: 1. The Proxy need not be a Member of the Company.2. 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.

3. It is optional to put an 'x' in the appropriate column against the resolutions indicated in the box. If you leave the 'For' or 'Against' column blank against any or all Resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.

4. In case of Joint holders, the signature of any one holder will be sufficient, but names of all the joint holders should be stated.

ResolutionNo.

1

2

3

45

6

7

Particulars

Ordinary Business:

To consider and adopt :(a) The Audited Standalone Financial Statements of the Company for the

Financial year ended March 31, 2017 together with the reports of the Board of Directors and Auditors thereon and

(b) The Audited Consolidated Financial Statements of the Company for the financial year ended March 31, 2017 together with the report of the Auditors thereon.

To appoint a Director in place of Mr. N K Mohanty (DIN: 07220804), who retires byrotation at this meeting and being eligible offers himself for re-appointment.

To appoint Auditors and fix their remuneration.Special Business:

To re-appoint Mr. Sebi Joseph (DIN: 05221403) as Managing Director of the Company.

To appoint Ms. Suma P N (DIN: 05350680) as the Whole-time Director of the Company.

To approve payment of Commission to the Independent Directors subject to an overall ceiling of 1 (one) % of the net profits of the Company.

Optional*

For Against

To ratify remuneration payable to the Cost Auditors for the Financial Year 2017-18.

149

September 21, 2017 at 5.00 p.m.

#If you have not registered/ updated your PAN with the Company/ Depository Participant, please use the DEFAULT PAN under PAN field to login for E-Voting.

*Please use your actual PAN, if you have already registered / updated your PAN with Company / Depository Participant.

Note: For detailed E-Voting instructions, please read “Instructions for Shareholders voting electronically” at note no. 11 of the Notice of 63rd Annual General Meeting dated August 10, 2017

E-Voting facility is available during the following period:

Note: 1) Only Shareholder / Proxyholders can attend the meetings.2) Shareholders / Proxyholders are requested to bring this Attendance Slip to the Meeting and hand over the same at the entrance

duly signed.3) Bodies Corporate who are members may attend through their authorized representatives appointed under Section 113 of the

Companies Act, 2013.4) Members/ Proxyholders should bring his/her copy of the Annual Report for reference at the Meeting.

SIGNATURE OF THE SHAREHOLDER/PROXY

rdI hereby record my presence at 63 Annual General Meeting of the Company held at Senate 2, Grand Sarovar Premiere, A. K. Plaza, Veer Savarkar Flyover, S. V. Road, Goregaon (W), Mumbai – 400 062 on Friday, September 22, 2017, at 10:30 a.m.

My /our e-mail ID for e-service of documents is

Name of the Proxy:

DP ID Client Id

OTIS ELEVATOR COMPANY (INDIA) LIMITED Reg. Office: 9th Floor, Magnus Towers, Mindspace, Link Road, Malad (W), Mumbai – 400064, Maharashtra

Tel: 91-22-2844 9700/ 66795151 Fax: 91-22- 2844 9791 Website: www.otis.com

CIN: U29150MH1953PLC009158

ATTENDANCE SLIP

Regd. Folio.No. No. of Shares held

NAME AND ADDRESS OF THE SHAREHOLDER:

ELECTRONIC VOTING PARTICULRS

EVSN USER ID # DEFAULT PAN

Commencement of E-Voting September 19, 2017 at 9.00 a. m

End of E-Voting September 21, 2017 at 5.00 p.m.

151

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