Have Lls

2nd June, 2021
The National Stock Exchange of India Limited BSE Limited

Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers
Plot No. C/1, G Block Dalal Street
Bandra Kurla Complex Mumbai- 400 001
Bandra (E)
Mumbai- 400 051 Scrip Code : 517354
NSE Symbol : HAVELLS
Sub: Annual Report for FY 2020-21 alongwith Notice of AGM
Dear Sir,
Please find enclosed herewith the 38th Annual Report of the Company for the financial
year 2020-21 as the 3rd Integrated Report of the Company alongwith the Notice convening
the 38th Annual General Meeting of the Company scheduled to be held on 30th day of June,
2021.
Also enclosed is the Sustainability Report of the Company published in respect of financial
year 2020-21.
This may be taken as due compliance of relevant provisions of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
Kindly acknowledge receipt.
Thanking you.
Yours faithfully,
for Havells India Limited
Digitally signed by
Sanjay Sanjay Kumar Gupta
Kumar Gupta Date: 2021.06.02
14:49:31 +05'30'
(Sanjay Kumar Gupta)

Company Secretary
Encl: As above
CLASSIFICATION | EXTERNAL PRINT

HAVELLS INDIA LIMITED
Regd. Office: 904, 9th Floor, Surya Kiran Building, K G Marg, Connaught Place, New Delhi - 110 001
Corp. Office: QRG Towers, 2D, Sector – 126, Expressway, Noida (U.P.) – 201 304
Tel. No.: 0120-3331000, Fax No.: 0120-3332000, E-mail: investors@havells.com
Website: www.havells.com, CIN: L31900DL1983PLC016304
NOTICE
NOTICE is hereby given that the 38th (Thirty Eighth) Annual General and also authorized to do all such acts, deeds and things and
Meeting of Havells India Limited will be held on 30th June, 2021, execute all such documents, instruments and writings as may
Wednesday at 10:00 am through Video Conferencing (VC) or Other be required and to delegate all or any of its powers herein
Audio Visual Means (OAVM) for which purpose the Registered Office conferred to any committee of Director or Director(s), to give
of the Company situated at 904, 9th Floor, Surya Kiran Building, K G effect to the aforesaid Resolution.”
Marg, Connaught Place, New Delhi – 110 001 shall be deemed as
the venue for the Meeting and the proceedings of the AGM shall be SPECIAL BUSINESS
deemed to be made thereat, to transact the following businesses:
7. Ratification of Cost Auditor’s Remuneration
To consider and if thought fit, to pass with or without
ORDINARY BUSINESS
modification(s), the following Resolution as an ORDINARY
To receive, consider and adopt the Audited Financial
1. RESOLUTION:
Statements of the Company for the Financial Year ended
31st March, 2021, the Reports of the Board of Directors and “RESOLVED THAT pursuant to the provisions of Section 148
Auditors thereon and the Audited Consolidated Financial and all other applicable provisions of the Companies Act,
Statements of the Company for the Financial Year ended 31st 2013 and the Companies (Audit and Auditors) Rules, 2014
March, 2021 and the Report of Auditors thereon. (including any statutory modification(s), enactment(s) or re-
enactment(s) thereof, for the time being in force), the Cost
2. To confirm the payment of Interim Dividend of ` 3/- per equity
Auditors appointed by the Board of Directors of the Company,
share of ` 1/- each already paid during the year as Interim
to conduct the audit of the cost records of the Company
Dividend for the Financial Year 2020-21.
for the Financial Year ending 31st March, 2022, be paid the
3. To declare a Final Dividend of ` 3.50 per equity share of remuneration as set out in the Statement annexed to the
` 1/- each for the Financial Year 2020-21. Notice convening this Meeting.”
4. To appoint a Director in place of Shri Ameet Kumar Gupta
(DIN: 00002838), who retires by rotation and being eligible, 8. ppointment of Smt. Namrata Kaul (DIN: 00994532) as an
A
offers himself for re-appointment. Independent Director
5. To appoint a Director in place of Shri Surjit Kumar Gupta To consider and if thought fit, to pass with or without
(DIN: 00002810), who retires by rotation and being eligible, modification(s), the following Resolution as an ORDINARY
offers himself for re-appointment. RESOLUTION:
6.
To appoint M/s Price Waterhouse & Co Chartered
“RESOLVED THAT Smt. Namrata Kaul (DIN: 00994532),
Accountants LLP (Registration No. 304026E/ E300009) as who was appointed as an Additional Director on the Board
Statutory Auditors of the Company of Directors of the Company in terms of Section 161(1) of the
Companies Act, 2013 (‘the Act’) and whose term of office
To consider and if thought fit, to pass with or without
expires at the ensuing Annual General Meeting and who
meets the criteria of Independence as provided under Section
RESOLUTION:
149(6) of the Act and the SEBI Listing Regulations and who is
“RESOLVED THAT in accordance with the provisions of eligible for appointment and is recommended by the Board
Sections 139, 142 and other applicable provisions of the of Directors upon the recommendation of the Nomination
Companies Act, 2013 and the Rules made thereunder, and Remuneration Committee for the office of Director as
M/s Price Waterhouse & Co Chartered Accountants LLP an Independent Director, be and is hereby appointed, in
(Registration No. 304026E/ E300009) be and are hereby accordance with Sections 149, 150, 152 read with Schedule
appointed as the Statutory Auditors of the Company from the IV and any other applicable provisions of the Act and the
conclusion of this Meeting to hold such office for a period of 5 corresponding Rules framed thereunder, as an Independent
(five) years till the conclusion of the 43rd (Forty Third) Annual Director to hold office for a first term of 5 (Five) years with
General Meeting and to conduct the audit for the financial effect from the date of this Annual General Meeting upto
year 2021-22, at a remuneration of INR 1.40 crores (Rupees the conclusion of the Annual General Meeting to be held in
One Crore and Forty lakhs only) payable in one or more calendar year 2026.”
instalments plus GST as applicable, and reimbursement of
9.
Appointment of Shri Ashish Bharat Ram
out-of-pocket expenses incurred.
(DIN: 00671567) as an Independent Director
RESOLVED FURTHER THAT the Board of Directors/ Audit To consider and if thought fit, to pass with or without
Committee of the Company be and is hereby authorised to modification(s), the following Resolution as an ORDINARY
fix the remuneration for the rest of tenure of the appointment RESOLUTION:
1
Havells India Limited
“RESOLVED THAT Shri Ashish Bharat Ram (DIN: 00671567), to determination by retirement by rotation, by the Shareholders in
who was appointed as an Additional Director on the Board the Annual General Meeting (AGM) of the Company held in year
of Directors of the Company in terms of Section 161(1) of the 2018 for a term of 3 (Three) years upto the forthcoming AGM of
Companies Act, 2013 (‘the Act’) and whose term of office 2021 and who is eligible for re-appointment and is recommended
expires at the ensuing Annual General Meeting and who meets by the Board of Directors upon the recommendation of the
the criteria of Independence as provided under Section 149(6) Nomination and Remuneration Committee for the office of
of the Act and the SEBI Listing Regulations and who is eligible Director, be and is hereby re-appointed, in accordance
for appointment and is recommended by the Board of Directors with Section 152 and any other applicable provisions of the
upon the recommendation of the Nomination and Remuneration Companies Act, 2013 and the corresponding rules framed
Committee for the office of Director as an Independent Director, thereunder, as a Director whose period of office shall be liable to
be and is hereby appointed, in accordance with Sections determination by retirement by rotation, for a further period of 5
149, 150, 152 read with Schedule IV and any other applicable (Five) years upto the conclusion of the Annual General Meeting
provisions of the Act and the corresponding Rules framed to be held in calendar year 2026.”
thereunder, as an Independent Director to hold office for a first
term of 5 (Five) years with effect from the date of this Annual 13.
Re-appointment of Shri Puneet Bhatia
General Meeting upto the conclusion of the Annual General (DIN: 00143973) as a Director
Meeting to be held in calendar year 2026.” To consider and if thought fit, to pass with or without

10. Re-appointment of Shri Jalaj Ashwin Dani (DIN: 00019080)
RESOLUTION:
as an Independent Director for a Second Term
o consider and if thought fit, to pass with or without modification(s),
T “RESOLVED THAT Shri Puneet Bhatia (DIN: 00143973), who
the following Resolution as a SPECIAL RESOLUTION: was appointed as a Director whose period of office was liable to
determination by retirement by rotation, by the Shareholders in
“RESOLVED THAT Shri Jalaj Ashwin Dani (DIN: 00019080), who
the Annual General Meeting (AGM) of the Company held in year
was appointed as an Independent Director by the Shareholders
2018 for a term of 3 (Three) years upto the forthcoming AGM of
in the Annual General Meeting (AGM) of the Company held in
2021 and who is eligible for re-appointment and is recommended
year 2018 for a term of 3 (Three) years upto the forthcoming
by the Board of Directors upon the recommendation of the
AGM of 2021 and who meets the criteria of Independence as
Nomination and Remuneration Committee for the office of
provided under Section 149(6) of the Companies Act, 2013 (‘the
Director, be and is hereby re-appointed, in accordance
Act’) and the SEBI Listing Regulations and who is eligible for re-
with Section 152 and any other applicable provisions of the
appointment and is recommended by the Board of Directors
Companies Act, 2013 and the corresponding rules framed
upon the recommendation of the Nomination and Remuneration
thereunder, as a Director whose period of office shall be liable
Committee for the office of Director as an Independent Director,
to determination by retirement by rotation, for a further period
be and is hereby re-appointed, in accordance with Sections
of 5 (Five) years upto the conclusion of the Annual General
149, 150, 152 read with Schedule IV and any other applicable
Meeting to be held in calendar year 2026.”
provisions of the Act and the corresponding rules framed
thereunder, as an Independent Director for a further period of
14. R
e-appointment of Shri Siddhartha Pandit (DIN: 03562264) as
5 (Five) years with effect from the date of this Annual General
a Whole-time Director for another term of 3 years
Meeting upto the conclusion of the Annual General Meeting to
be held in calendar year 2026.” To consider and if thought fit, to pass with or without

11. R
e-appointment of Shri Upendra Kumar Sinha RESOLUTION:
(DIN: 00010336) as an Independent Director for a Second Term
To consider and if thought fit, to pass with or without modification(s), “RESOLVED THAT in line with the Nomination and
the following Resolution as a SPECIAL RESOLUTION: Remuneration Policy of Directors, Key Managerial Personnel
and Other Employees of the Company and pursuant to the
“ RESOLVED THAT Shri Upendra Kumar Sinha (DIN: provisions of Sections 196, 197, 198, 203 read with Schedule
00010336), who was appointed as an Independent Director V and other applicable provisions, if any, of the Companies
by the Shareholders in the Annual General Meeting (AGM) of Act, 2013 (‘the Act’) (including any statutory modification(s),
the Company held in year 2018 for a term of 3 (Three) years enactment(s) or re-enactment(s) thereof for the time being
upto the forthcoming AGM of 2021 and who meets the criteria in force), consent be and is hereby accorded for the re-
of Independence as provided under section 149(6) of the appointment of Shri Siddhartha Pandit (DIN: 03562264)
Companies Act, 2013 (‘the Act’) and the SEBI Listing Regulations as a Whole-time Director of the Company, for another term
and who is eligible for re-appointment and is recommended of 3 (Three) years from 29th May, 2022 to 28th May, 2025 on
by the Board of Directors upon the recommendation of the the terms and conditions including remuneration (and also
Nomination and Remuneration Committee for the office of including the remuneration to be paid in the event of loss or
Director as an Independent Director, be and is hereby re- inadequacy of profits in any financial year during the aforesaid
appointed, in accordance with Sections 149, 150, 152 read with period, subject to the requirements of Schedule V to the Act)
Schedule IV and any other applicable provisions of the Act and as enumerated herein below:
the corresponding rules framed thereunder, as an Independent
1. Period From 29th May, 2022 to
Director for a further period of 5 (Five) years with effect from the
28th May, 2025
date of this Annual General Meeting upto the conclusion of the 2. Remuneration
Annual General Meeting to be held in calendar year 2026.” Total Salary, perquisites and allowances ` 1.05 crores per
including benefits & incentives towards annum which may go
12. Re-appointment of Shri T. V. Mohandas Pai (DIN: 00042167) P.F., NPS, Personal Accident and Term upto ` 2.00 crores per
as a Director Life Insurance, Mediclaim Coverage, annum over a period of
To consider and if thought fit, to pass with or without modification(s),
Executive Health check-up, Leave 3 years.
the following Resolution as an ORDINARY RESOLUTION: Encashment etc. as per Company’s
Policy
“RESOLVED THAT Shri T. V. Mohandas Pai (DIN: 00042167), 3. ESOP/ ESPS As per policies and
who was appointed as a Director whose period of office was liable rules of the Company.
2

RESOLVED FURTHER THAT the Board of Directors of the 4. The attendance of the Members attending the AGM through
Company and/ or any Committee thereof be and is hereby VC/ OAVM will be counted for the purpose of reckoning the
authorised to alter or vary any or all of the terms, conditions of quorum under Section 103 of the Companies Act, 2013.
Shri Siddhartha Pandit as approved within the limits specified
5. Pursuant to the provisions of Section 108 of the Companies
in Schedule V to the Act, without any further reference to the
Act, 2013 read with Rule 20 of the Companies (Management
Company in General Meeting.
and Administration) Rules, 2014 (as amended) and Regulation
44 of SEBI (Listing Obligations & Disclosure Requirements)
RESOLVED FURTHER THAT for the purpose of giving
Regulations, 2015 (as amended), and the MCA Circulars
effect to the foregoing Resolution, Shri Sanjay Kumar Gupta,
the Company is providing facility of remote e-voting to its
Company Secretary of the Company be and is hereby
Members in respect of the business to be transacted at
authorised to do all such acts, deeds, matters and things, as
the AGM. For this purpose, the Company has entered into
may be considered necessary, proper or desirable in the said
an agreement with National Securities Depository Limited
regard including filing of returns with any authority.”
(NSDL) for facilitating voting through electronic means, as the
authorized agency. The facility of casting votes by a member
By Order of the Board using remote e-voting system as well as e-voting on the day of
For Havells India Limited the AGM will be provided by NSDL.
Sanjay Kumar Gupta The Notice calling the AGM has been uploaded on the website
6.
Company Secretary of the Company in the Investor Relations Section under Financials
Delhi, May 20, 2021 Membership No. F3348 in the Annual Reports tab. The complete Integrated Annual
Report is also available in the same section. The Notice can
Registered Office: also be accessed from the websites of the Stock Exchanges
904, 9th Floor, Surya Kiran Building i.e. BSE Limited and National Stock Exchange of India Ltd. at
K G Marg, Connaught Place, New Delhi – 110 001 www.bseindia.com and www.nseindia.com respectively and the
CIN: L31900DL1983PLC016304 AGM Notice is also available on the website of NSDL (agency for
providing the Remote e-Voting facility) i.e. www.evoting.nsdl.com.
7.
This AGM has been convened through VC/ OAVM in
compliance with applicable provisions of the Companies Act,
NOTES 2013 read with the MCA Circular No. 14/2020 dated 8th April,
1. Amidst the ongoing COVID-19 pandemic, social distancing 2020 and MCA Circular No. 17/2020 dated 13th April, 2020,
is a norm to be followed and pursuant to the Circular Nos. MCA Circular No. 20/2020 dated 5th May, 2020 and MCA
14/2020, 17/2020 and 20/2020 dated 8th April, 2020, 13th Circular No. 2/2021 dated 13th January, 2021.
April, 2020 and 5th May, 2020 followed by Circular No.
8. The recorded transcript of the forthcoming AGM on 30th June,
02/2021 dated 13th January, 2021 issued by the Ministry of
2021 shall also be made available on the website of the
Corporate Affairs (hereinafter collectively referred to as “MCA Company www.havells.com in the Investor Relations Section,
Circulars”) and ‘SEBI’ Circular No. SEBI/HO/CFD/CMD1/ as soon as possible after the Meeting is over.
CIR/P/2020/79 dated 12th May, 2020 followed by Circular
No. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th January, 9. All documents referred to in the accompanying Notice and
2021 (hereinafter referred to as “SEBI Circulars”) physical the Explanatory Statement can be obtained for inspection by
attendance of the Members to the Annual General Meeting writing to the Company at its email ID investors@havells.com
(AGM) venue is not required and AGM be held through Video till the date of AGM.
Conferencing (VC) or Other Audio Visual Means (OAVM). 10.
The Register of Members and Share Transfer Register will
Hence, Members can attend and participate in the ensuing remain closed from 19th June, 2021, Saturday to 23rd June,
AGM through VC/ OAVM. 2021, Wednesday (both days inclusive).
2. ince this AGM is being held through VC/ OAVM pursuant to

S 11.
The Dividend, if any declared, shall be payable to those
the MCA Circulars, physical attendance of members has been Shareholders whose name(s) stand registered:
dispensed with, accordingly, the facility to appoint proxy to attend (a) as Beneficial Owner as at the end of business hours
and cast vote for the members is not available for this AGM and on 18th June, 2021 as per the lists to be furnished by
hence the Proxy Form and Attendance Slip are not Annexed National Securities Depositories Limited and Central
hereto. However, the Body Corporates are entitled to appoint Depository Services (India) Limited in respect of the
authorised representatives to attend the AGM through VC/ OAVM shares held in electronic form, and
and participate thereat and cast their votes through e-voting.
(b) as Member in the Register of Members of the Company/
3.
The Members can join the AGM in the VC/ OAVM mode Registrar & Share Transfer Agent after giving effect to
15 minutes before and after the scheduled time of the valid share transmissions, if any, in physical form lodged
commencement of the Meeting by following the procedure with the Company as at the end of business hours on
mentioned in the Notice. The facility of participation at the AGM 18th June, 2021.
through VC/ OAVM will be made available for 1,000 members 12. urther pursuant to the amendments introduced in the
F
on first come first served basis. However, this number does Income-tax Act, 1961 (‘the Act’) vide Finance Act, 2020,
not include the large Shareholders i.e. Shareholders holding w.e.f. April 1, 2020, dividend declared, paid or distributed
2% or more shareholding, Promoters, Institutional Investors, by a Company on or after April 1, 2020, shall be taxable
Directors, Key Managerial Personnel, the Chairpersons of the in the hands of the shareholders. The Company shall,
Audit Committee, Nomination and Remuneration Committee therefore, be required to deduct TDS/ WHT at the time of
and Stakeholders Relationship Committee, Auditors etc. who payment of dividend at the applicable tax rates. The rates of
are allowed to attend the AGM without restriction on account TDS/ WHT would depend upon the category and residential
of first come first served basis. status of the shareholder as briefed hereunder:
3
A. RESIDENT SHAREHOLDERS:
A.1
No tax will be deducted on payment of dividend to the RESIDENT INDIVIDUAL SHAREHOLDER if the total dividend, paid during
Financial year (‘FY’), does not exceed INR 5,000/-.
A.2
Tax deductible at source for RESIDENT SHAREHOLDER (OTHER THAN RESIDENT INDIVIDUAL SHAREHOLDER RECEIVING
DIVIDEND NOT EXCEEDING INR 5,000/- DURING FY)
Sl. No. Particulars Withholding tax rate Declaration(s)/ document(s) required
1. Valid PAN updated with the Depository Participant in case shares 10% N.A.
are held in dematerialized form; or Registrar and Transfer Agent
(‘RTA’) in case shares are held in physical form and no exemption
sought by Resident Shareholder
2. No/ Invalid PAN with the Depository Participant in case shares 20% N.A.
are held in dematerialized form; or RTA in case shares are held
in physical form and no exemption sought by Shareholder
3. Availability of lower/ nil tax deduction certificate issued by Income Rate specified in Lower • Copy of PAN card; and
Tax Department under section 197 of the Act tax withholding certificate • Copy of lower tax withholding
obtained from Income Tax certificate obtained from
Department Income Tax Department
A.3
NIL TAX-DEDUCTIBLE AT SOURCE/ NIL WITHHOLDING on dividend payment to Resident Shareholders if the Shareholders submit
documents mentioned in the below table with the Company/ RTA:
Sl. No. Particular Declaration(s)/ document(s) required

1. An Individual furnishing Form • Copy of PAN card
15G/ 15H • Declaration in Form No 15G (applicable to an individual who is less than 60 years)/ Form 15H
(applicable to an Individual who is 60 years and above), fulfilling prescribed conditions.
2. Shareholders to whom section 194 of • Copy of PAN card
the Act does not apply such as LIC, • Self-declaration*, along with adequate documentary evidence (e.g., registration certificate),
GIC, etc. to the effect that the no tax withholding is required as per provisions of section 194 of the Act.
3. Shareholder covered u/s 196 of the • Copy of PAN card
Act such as Government, RBI, Mutual • Self-declaration*, along with adequate documentary evidence, substantiating applicability of
Funds specified under section 10(23D), 196 of the Act.
corporations established by Central Act
and exempt from Income Tax.
4. Category I and II Alternative Investment • Copy of PAN card
Fund (AIF) • Self-declaration* that AIF’s income is exempt under Section 10(23FBA) of the Act and they
are governed by SEBI regulations as applicable to Category I or Category II AIFs, along with
copy of registration certificate.
5. Any other entity exempt from withholding • Copy of PAN card
tax under the provisions of section 197A • Self-declaration* along with adequate documentary evidence, substantiating the nature of
of the Act (including those mentioned in the entity.
Circular No. 18/2017 issued by CBDT) • Copy of the lower tax withholding certificate obtained from Income Tax Department (except
those covered by Circular 18/2017)
B. NON-RESIDENT SHAREHOLDERS:
Tax deductible at source/ tax withholding for non-resident shareholders.
Sl. Category Withholding Declaration(s)/ document(s) required

No. tax rate
1. Foreign Institutional 20% (plus applicable • Copy of PAN card (if available)
Investors (FIIs)/ Foreign surcharge and cess) or • Self-declaration* along with adequate documentary evidence
Portfolio Investors (FPIs) tax treaty rate whichever substantiating the nature of the entity
is beneficial • To avail beneficial rate of tax treaty, tax documents as mentioned
in SI. No. 3 below would be required to be submitted
2. Alternative Investment 10% (plus applicable • Copy of PAN card (if available)
Fund – Category III located surcharge and cess)# • Self-declaration* along with adequate documentary evidence
in International Financial substantiating the nature of the entity
Services Centre
4
Sl. Category Withholding Declaration(s)/ document(s) required
No. tax rate
3. Other Non-resident 20% (plus applicable To avail beneficial rate of tax treaty following tax documents would
shareholders (except those surcharge and cess) or be required:
who are tax residents of tax treaty rate • Copy of PAN card (if available)
Notified Jurisdictional Area) whichever is beneficial
• Copy of Tax Residency certificate issued by revenue authority of
country of residence of shareholder for the financial year 2020-21
(covering the period from April 1, 2020 to March 31, 2021)
• Self-declaration* in Form 10F
•
Self-declaration* for no permanent establishment/ fixed base/
business connection in India, place of effective management,
beneficial ownership and eligibility to avail tax treaty benefit [on
shareholder’s letterhead]
(Note: Application of beneficial Tax Treaty Rate shall depend upon
the completeness and satisfactory review by the Company of the
documents submitted by the non-resident shareholders. In case the
documents are found to be incomplete, the Company reserves the
right to not consider the tax rate prescribed under the tax treaty).
4. Non-Resident Shareholders 30% N. A.
who are tax residents of
Notified Jurisdictional Area as
defined u/s 94A(1) of the Act
5. Sovereign Wealth funds NIL • opy of the notification issued by CBDT substantiating the
C
and Pension funds notified applicability of section 10(23FE) of the Act issued by the
by Central Government u/s Government of India
10(23FE) of the Act • elf-declaration* that the conditions specified in section 10(23FE)
S
have been complied with
6. Subsidiary of Abu Dhabi NIL • Self-declaration* substantiating the fulfillment of conditions
Investment Authority (ADIA) prescribed under section 10(23FE) of the Act
as prescribed u/s 10(23FE) of
the Act
7. Availability of Lower/ NIL tax Rate specified in • Copy of the lower tax withholding certificate obtained from Income
deduction certificate issued Lower tax withholding Tax Department
by Income Tax Department certificate obtained from
u/s 195 or 197 of the Act Income Tax Department
*Formats for the Self-declarations referred to hereinabove are available at the website of the RTA which can be accessed at https://linkintime.co.in/client-downloads.html
#
In case PAN is not updated with the Company’s RTA or depository or PAN is not available and information sought in the declaration is not provided, higher
rate of withholding tax as per section 206AA shall be applied.
Notes:
(i) Duly completed and signed documents should be provided to the Company/ RTA. Incomplete and/ or unsigned forms and declarations will not be
considered by the Company. Further, in case, where copy of documents (such as, PAN card, Registration certificate, etc.) is provided, the copy
should be self-attested by the Shareholder or its authorized signatory. For all documents being uploaded by the Member, the Member undertakes
to send the original document(s) on the request of the Company.
(ii) The aforesaid documents such as Form 15G/ 15H, documents under sections 196, 197A, FPI Registration Certificate, Tax Residency Certificate,
Lower Tax certificate etc. can be uploaded on the link https://linkintime.co.in/formsreg/submission-of-form-15g-15h.html on or before Wednesday,
23rd June, 2021 to enable the Company to determine the applicable TDS rate.
Any communication in relation to tax rate determination/ deduction received post Wednesday, 23rd June, 2021 shall not be considered.
It is advisable to upload the documents at the earliest to enable the Company to collate the documents to determine the appropriate TDS rates.
(iii) Determination of withholding tax rate is subject to necessary verification by the Company of the shareholder details as available with the
Depository Participant in case shares are held in dematerialized form; or RTA in case shares are held in physical form, as on the Record Date
and other documents available with the Company/ RTA. Shareholders holding shares under multiple accounts under different residential status/
category and single PAN, may note that, higher of the tax rate as applicable to different residential status/ category will be considered for their
entire shareholding under different accounts.
(iv) In case of any discrepancy in documents submitted by the shareholder, the company will deduct tax at higher rate as applicable, without any further
communication in this regard.
(v) In case withholding tax is deducted at a higher rate, an option is still available with the shareholder to file the return of income and claim an
appropriate refund. No claim shall lie against Company for any taxes deducted by the Company.
(vi) The certificate in respect of tax deducted at source, if any, will be available at https://vendors.havells.com/login/login.aspx, (post filing of 2nd quarter
TDS Return for the Financial Year 2021-22). You can login by entering your folio No. as user Id and your income tax Permanent Account Number
(PAN) as password. You will also be able to view the credit of TDS in Form 26AS, which can be downloaded from your e-filing income tax portal at
https://www.incometaxindiaefiling.gov.in/home
(vii) In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information
provided by the shareholder, the shareholder will be responsible to indemnify the Company and also, provide the Company with all information/
documents and co-operation in any tax proceedings.
(viii) This Communication is not exhaustive and does not purport to be a complete analysis or listing of all potential tax consequences in the matter of
dividend payment. Shareholders should consult their tax advisors for requisite action to be taken by them.
(ix) In case of any query in the matter please reach out at delhi@linkintime.co.in.
5
13. i)
Members holding shares in physical form are 17.
I n case the Dividend has remained unclaimed in
requested to intimate his/ her PAN/ any change in respect of financial years 2013-14 (Final) to 2020-21,
their address/bank details/ email id/ mobile number the Shareholders may approach the Company with their
instantly by filling the KYC Form and by sending it dividend warrants for revalidation with the Letter of
to Link Intime India Private Limited, Noble Heights, Undertaking for issue of duplicate dividend warrants. The
1st floor, Plot No NH-2, C-1 Block, LSC, Near Savitri Company regularly sends letters/ emails to this effect to
Market, Janakpuri, New Delhi - 110 058, Registrar the concerned Shareholders.
and Transfer Agent of the Company or at Company’s
Corporate Office, so that change could be effected in 18. The annual accounts of the subsidiary companies along with
the Register of Members. the related detailed information are available for inspection at
the Corporate Office of the Company and of the subsidiaries
ii)
Members who are holding shares in demat concerned and copies will be made available to Shareholders
mode are requested to notify any change in their of Havells India Limited and its subsidiary companies upon
residential address, Bank A/c details and/ or email request.
address immediately to their respective Depository
Participants. 19. To prevent fraudulent transactions, Members are advised to
exercise due diligence and notify the Company of any change
iii) Members who have not opted for ECS facility earlier in address or demise of any member as soon as possible.
are requested to fill up the enclosed KYC form and Members are also advised not to leave their demat account(s)
return it to the Corporate Office of the Company, to dormant for long. Periodic statement of holdings should be
avail the ECS facility otherwise they are requested to obtained from the concerned Depository Participant and
intimate their Savings Account/ Current Account No. holdings should be verified.
and the name of Bank with whom such account is
held. Please refer to the KYC Form being enclosed 20. Pursuant to the requirements of the SEBI (Listing Obligations
with this Notice. and Disclosure Requirements) Regulations, 2015 on Corporate
Governance and secretarial standard on general meetings,
14. The SEBI has mandated the submission of the Permanent the information about the Directors proposed to be appointed/
Account Number (PAN) by every participant in the securities re-appointed at the Annual General Meeting is given in the
market. Members holding shares in electronic form are, Annexure to the Notice.
therefore, requested to submit their PAN to their depository
participant(s). Members holding shares in physical form are 21.
An Explanatory Statement pursuant to Section 102 of the
required to submit their PAN details to the Registrar and Share Companies Act, 2013 in respect of the Special Businesses
Transfer Agent. specified in the notice is annexed hereto.
15. During the year, amount of Un-claimed Final Dividend for the 22.
Additional information, pursuant to the Securities and
financial year 2012-13 and after the close of financial year, Exchange Board of India (Listing Obligations and Disclosure
amount of Un-claimed Interim Dividend for the financial Requirements) Regulations, 2015, with respect to appointment
year 2013-14 has been deposited in the Investor Education of the Statutory Auditors of the Company, as proposed under
and Protection Fund. Further, amount of Un-claimed Final Item No. 6 of this Notice under Ordinary Business, is also
Dividend for financial year 2013-14 is due for deposit to provided in the Explanatory Statement.
the Investor Education and Protection Fund on 15th August,
2021. 23.
Corporate Members are encouraged to attend the AGM through
their Authorized Representatives. They are requested to send
by email at investors@havells.com, a certified copy of the Board
The Company also transmitted 28,593 (on account of Un-
Resolution/ Power of Attorney authorizing their representatives
claimed Dividend for FY 2012-13) and 13,079 [on account of
to attend and vote on their behalf in the Meeting.
Un-claimed Dividend for FY 2013-14 (Interim)] Equity Shares
of the Company into the DEMAT Account of the IEPF Authority
24. Pursuant to Section 72 of the Companies Act, 2013 read with
held with NSDL (DPID/ Client ID IN300708/10656671) in
Rule 19(1) of the Rules made thereunder, Shareholders are
terms of the provisions of section 124(6) of the Companies entitled to make nomination in respect of shares held by them
Act, 2013 and the IEPF Authority (Accounting, Audit, Transfer in physical form. Shareholders desirous of making nominations
and Refund) Rules, 2016, as amended from time to time. are requested to send their requests in Form SH.13, which is
These Equity Shares were the Shares of such Shareholders available on the website of the Company.
whose unclaimed/ unpaid dividend pertaining to financial
years 2012-13 and 2013-14 (Interim) had been transferred 25. Pursuant to the provisions of Section 108 of the Companies
into IEPF and who have not encashed their dividends for 7 Act, 2013 read with Rule 20 of the Companies (Management
(Seven) years. and Administration) Rules, 2014 (as amended) and
Regulation 44 of SEBI (Listing Obligations & Disclosure
16. Concerned Shareholders may still claim the shares or apply Requirements) Regulations, 2015 (as amended), and the
for refund to the IEPF Authority in Web Form No. IEPF-5 MCA Circulars, the Company is providing facility for voting
available on www.iepf.gov.in by electronic means for all its Members to enable them
6
to cast their vote electronically and the business may be Notice of the AGM under “Access to NSDL e-Voting
transacted through such e-voting. system”.
A member may exercise his/ her vote at the General Meeting d. Once the vote on a Resolution is cast by the Member, the
by electronic means and the Company may pass any Member shall not be allowed to change it subsequently
resolution by electronic voting system in accordance with the or cast the vote again.
provisions of the aforesaid Rule.
e.
Member may participate in the AGM even after
For this purpose, the Company has entered into an agreement exercising his right to vote through remote e-voting but
with National Securities Depository Limited (NSDL) for shall not be allowed to vote again.
facilitating voting through electronic means, as the authorized
agency. f. At the end of remote e-voting period, the facility shall
forthwith be blocked.
The facility of casting votes by a member using remote
e-voting system as well as e-voting on the day of the AGM will 27. The Board vide its Resolution passed on 20th May, 2021 has
be provided by NSDL. appointed Ms Balika Sharma, Practicing Company Secretary
(Membership No. F4816, COP No. 3222), as Scrutinizer for
The Members attending the AGM who have not already cast conducting the e-voting process in accordance with the law
their vote by remote e-voting shall be able to exercise their and in a fair and transparent manner.
right at the meeting.
The Scrutinizer shall immediately after the conclusion of

The Members who have cast their vote by remote e-voting
prior to the Meeting may also attend the AGM but shall not be voting at the AGM, unblock the votes cast through remote
entitled to cast their vote again. Members may contact Shri e-voting and e-voting on the date of the AGM and make, not
Sanjay Kumar Gupta, Company Secretary, for any grievances later than 2 working days of the conclusion of the Meeting,
connected with electronic means at investors@havells.com, a consolidated Scrutinizer’s Report of the total votes cast
Tel. # 0120-3331000. in favour or against, if any, forthwith to the Chairman of the
Company or any person authorized by him in writing and the
The remote e-voting period commences on 27th June,
26. Results shall be declared by the Chairman or any person
2021, Sunday (8:30 am) and ends on 29th June, 2021, authorized by him thereafter.
Tuesday (5:00 pm).
The Results declared along with the Scrutinizer’s Report
a. Members of the Company, holding shares either in

shall be placed on the website of the Company www.
physical form or in dematerialized form, as on the cut-off
havells.com and on the website of NSDL immediately after
date i.e. 23rd June, 2021, Wednesday may opt for remote
the declaration of Results by the Chairman or any person
e-voting and cast their vote electronically.
authorized by him in writing. The results shall also be
forwarded to the stock exchanges where the shares of the
b.
A person, whose name is recorded in the register
Company are listed.
of members or in the register of beneficial owners
maintained by the depositories as on cut-off date only
shall be entitled to avail the facility of remote e-voting or THE INSTRUCTIONS FOR MEMBERS FOR REMOTE
e-voting at the Meeting. E-VOTING ARE AS UNDER:-
The remote e-voting period begins on 27th June, 2021, Sunday
c. Any person holding shares in physical form and non- at 08:30 A.M. and ends on 29th June, 2021, Tuesday at 05:00
individual shareholders, who acquires shares of the P.M. The remote e-voting module shall be disabled by NSDL for
Company and becomes member of the Company after voting thereafter.
the notice is send through e-mail and holding shares
as of the cut-off date i.e. 23rd June, 2021, may obtain How do I vote electronically using NSDL e-Voting system?
the login ID and password by sending a request at The way to vote electronically on NSDL e-Voting system consists of
evoting@nsdl.co.in or Issuer/ RTA. However, if you “Two Steps” which are mentioned below:
are already registered with NSDL for remote e-voting,
then you can use your existing user ID and password Step 1: Access to NSDL e-Voting system
for casting your vote. If you forgot your password, A) ogin method for e-Voting and joining virtual meeting for
L
you can reset your password by using “Forgot User Individual shareholders holding securities in demat mode
Details/Password” or “Physical User Reset Password”
option available on www.evoting.nsdl.com or call on In terms of SEBI circular dated December 9, 2020 on e-Voting
toll free no. 1800 1020 990 and 1800 22 44 30. In facility provided by Listed Companies, Individual shareholders
case of Individual Shareholders holding securities in holding securities in demat mode are allowed to vote through
demat mode who acquires shares of the Company and their demat account maintained with Depositories and
becomes a Member of the Company after sending of Depository Participants. Shareholders are advised to update
the Notice and holding shares as of the cut-off date their mobile number and email id in their demat accounts in
i.e. 23rd June, 2021 may follow steps mentioned in the order to access e-Voting facility.
7
Login method for Individual shareholders holding securities in demat mode is given below:
Type of shareholders Login Method
Individual Shareholders holding securities in demat 1. If you are already registered for NSDL IDeAS facility, please visit the e-Services
mode with NSDL. website of NSDL. Open web browser by typing the following URL: https://
eservices.nsdl.com/ either on a Personal Computer or on a mobile. Once
the home page of e-Services is launched, click on the “Beneficial Owner”
icon under “Login” which is available under “IDeAS” section. A new screen
will open. You will have to enter your User ID and Password. After successful
authentication, you will be able to see e-Voting services. Click on “Access
to e-Voting” under e-Voting services and you will be able to see e-Voting
page. Click on options available against company name or e-Voting service
provider - NSDL and you will be re-directed to NSDL e-Voting website for
casting your vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting.
2. If the user is not registered for IDeAS e-Services, option to register is available at
https://eservices.nsdl.com. Select “Register Online for IDeAS” Portal or click at
https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
3. Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once the
home page of e-Voting system is launched, click on the icon “Login” which is available
under ‘Shareholder/Member’ section. A new screen will open. You will have to enter
your User ID (i.e. your sixteen digit demat account number held with NSDL), Password/
OTP and a Verification Code as shown on the screen. After successful authentication,
you will be redirected to NSDL Depository site wherein you can see e-Voting page.
Click on options available against company name or e-Voting service provider-
NSDL and you will be redirected to e-Voting website of NSDL for casting your vote
during the remote e-Voting period or joining virtual meeting & voting during the
meeting.
Individual Shareholders holding securities in demat 1. Existing users who have opted for Easi/Easiest, they can login through their user
mode with CDSL id and password. Option will be made available to reach e-Voting page without
any further authentication. The URL for users to login to Easi/Easiest are https://
web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on New
System Myeasi.
2. After successful login of Easi/Easiest the user will be also able to see the E Voting
Menu. The Menu will have links of e-Voting service provider i.e. NSDL. Click on
NSDL to cast your vote.
3. If the user is not registered for Easi/Easiest, option to register is available at
https://web.cdslindia.com/myeasi/Registration/EasiRegistration
4. Alternatively, the user can directly access e-Voting page by providing demat
Account Number and PAN No. from a link in www.cdslindia.com home page. The
system will authenticate the user by sending OTP on registered Mobile & Email
as recorded in the demat Account. After successful authentication, user will
be provided links for the respective e-Voting Service Provider (ESP) i.e. NSDL
where the e-Voting is in progress.
Individual Shareholders (holding securities in demat You can also login using the login credentials of your demat account through your
mode) login through their depository participants Depository Participant registered with NSDL/CDSL for e-Voting facility. Once login,
you will be able to see e-Voting option. Once you click on e-Voting option, you will
be redirected to NSDL/CDSL Depository site after successful authentication, wherein
you can see e-Voting feature. Click on options available against company name
or e-Voting service provider-NSDL and you will be redirected to e-Voting website
of NSDL for casting your vote during the remote e-Voting period or joining virtual
meeting & voting during the meeting.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option
available at abovementioned website.
8
Helpdesk for Individual Shareholders holding securities in 5.
Password details for shareholders other than Individual
demat mode for any technical issues related to login through shareholders are given below:
Depository i.e. NSDL and CDSL.
a) If you are already registered for e-Voting, then you can
use your existing password to login and cast your vote.
Login type Helpdesk details
b) If you are using NSDL e-Voting system for the first time,
Individual Members facing any technical issue in you will need to retrieve the ‘initial password’ which was
Shareholders login can contact NSDL helpdesk by communicated to you. Once you retrieve your ‘initial
holding securities sending a request at evoting@nsdl.co.in password’, you need to enter the ‘initial password’ and
in demat mode with or call at toll free no.: 1800 1020 990 and
the system will force you to change your password.
NSDL 1800 22 44 30
c) How to retrieve your ‘initial password’?
Individual Members facing any technical issue in (i) If your email ID is registered in your demat account
Shareholders login can contact CDSL helpdesk by or with the company, your ‘initial password’ is
holding securities sending a request at helpdesk.evoting@
communicated to you on your email ID. Trace the
in demat mode with cdslindia.com or contact at 022- 23058738
CDSL or 022-23058542-43 email sent to you from NSDL from your mailbox.
Open the email and open the attachment i.e. a .pdf
file. Open the .pdf file. The password to open the
B) L
ogin Method for e-Voting and Joining virtual .pdf file is your 8 digit client ID for NSDL account,
meeting for shareholders other than Individual last 8 digits of client ID for CDSL account or folio
shareholders holding securities in demat mode and number for shares held in physical form. The .pdf file
shareholders holding securities in physical mode. contains your ‘User ID’ and your ‘initial password’.
How to Log-in to NSDL e-Voting website? (ii)

If your email ID is not registered, please
follow steps mentioned below in process for
1. Visit the e-Voting website of NSDL. Open web browser by
those shareholders whose email ids are not
typing the following URL: https://www.evoting.nsdl.com/ either
registered
on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click 6. If you are unable to retrieve or have not received the “Initial
on the icon “Login” which is available under ‘Shareholders/ password” or have forgotten your password:
Member’ section.
a) Click on “Forgot User Details/Password?” (If you are
3. A new screen will open. You will have to enter your User ID, holding shares in your demat account with NSDL or
your Password Otp and a Verification Code as shown on the CDSL) option available on www.evoting.nsdl.com.
screen.
b) “Physical User Reset Password?” (If you are

Alternatively, if you are registered for NSDL eservices i.e. holding shares in physical mode) option available on
IDeAS, you can log-in at https://eservices.nsdl.com/ with your www.evoting.nsdl.com.
existing IDeAS login. Once you log-in to NSDL eservices after
using your log-in credentials, click on e-Voting and you can c) I f you are still unable to get the password by aforesaid two
proceed to Step 2 i.e. Cast your vote electronically. options, you can send a request at evoting@nsdl.co.in
mentioning your demat account number/folio number,
4. Your User ID details are given below: your PAN, your name and your registered address etc.
Manner of holding Your User ID is d) Members can also use the OTP (One Time Password)
shares i.e. Demat based login for casting the votes on the e-Voting system
(NSDL or CDSL) or of NSDL.
Physical
a) For Members who 8 Character DP ID followed by 8 7. After entering your password, tick on Agree to “Terms and
hold shares in Digit Client ID Conditions” by selecting on the check box.
demat account with For example if your DP ID is
NSDL. 8. Now, you will have to click on “Login” button.
IN300*** and Client ID is 12******
then your user ID is IN300***12******
9. After you click on the “Login” button, Home page of e-Voting
b) For Members who 16 Digit Beneficiary ID will open.
hold shares in For example if your Beneficiary ID
demat account with is 12************** then your user Step 2: Cast your vote electronically and join General Meeting
CDSL. ID is 12************** on NSDL e-Voting system.
c) For Members EVEN Number followed by Folio How to cast your vote electronically and join General Meeting
holding shares in Number registered with the on NSDL e-Voting system?
Physical Form. company
1. After successful login at Step 1, you will be able to see all
For example if folio number is
001*** and EVEN is 101456 then the companies “EVEN” in which you are holding shares
user ID is 101456001*** and whose voting cycle and General Meeting is in active
status.
9
2. Select “EVEN” of company for which you wish to cast your 2. In case shares are held in demat mode, please provide
vote during the remote e-Voting period and casting your vote DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary
during the General Meeting. For joining virtual meeting, you ID), Name, client master or copy of Consolidated
need to click on “VC/OAVM” link placed under “Join General Account statement, PAN (self attested scanned copy
Meeting”. of PAN card), AADHAAR (self attested scanned
copy of Aadhaar Card) to investors@havells.com
3. Now you are ready for e-Voting as the Voting page opens.
If you are an Individual shareholders holding securities in
4. Cast your vote by selecting appropriate options i.e. assent or demat mode, you are requested to refer to the login method
dissent, verify/modify the number of shares for which you wish explained at step 1 (A) i.e. Login method for e-Voting
to cast your vote and click on “Submit” and also “Confirm” and joining virtual meeting for Individual shareholders
when prompted. holding securities in demat mode.
5. Upon confirmation, the message “Vote cast successfully” will 3. Alternatively shareholders/members may send a request to
be displayed. evoting@nsdl.co.in for procuring user id and password for
6. You can also take the printout of the votes cast by you by e-voting by providing above mentioned documents.
clicking on the print option on the confirmation page.
4. In terms of SEBI circular dated December 9, 2020 on e-Voting
7. Once you confirm your vote on the Resolution(s), you will not facility provided by Listed Companies, Individual shareholders
be allowed to modify your vote. holding securities in demat mode are allowed to vote through
their demat account maintained with Depositories and
General Guidelines for shareholders: Depository Participants. Shareholders are required to update
1.
Institutional shareholders (i.e. other than individuals, HUF, their mobile number and email ID correctly in their demat
NRI etc.) are required to send scanned copy (PDF/JPEG account in order to access e-Voting facility.
Format) of the relevant Board Resolution/ Authority letter
etc. with attested specimen signature of the duly authorized THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON
signatory(ies) who are authorized to vote, to the Scrutinizer by THE DAY OF THE AGM ARE AS UNDER:
e-mail to csbalikasharma.h@gmail.com with a copy marked to 1. The procedure for e-Voting on the day of the AGM is same as
evoting@nsdl.co.in. the instructions mentioned above for remote e-voting.
2. Only those Members/ shareholders, who will be present in the

2.
It is strongly recommended not to share your password
AGM through VC/OAVM facility and have not casted their vote on
with any other person and take utmost care to keep your
the Resolutions through remote e-Voting and are otherwise not
password confidential. Login to the e-voting website will be
barred from doing so, shall be eligible to vote through e-Voting
disabled upon five unsuccessful attempts to key in the correct
system in the AGM.
password. In such an event, you will need to go through the
“Forgot User Details/Password?” or “Physical User Reset 3. Members who have voted through Remote e-Voting will be
Password?” option available on www.evoting.nsdl.com to eligible to attend the AGM. However, they will not be eligible to
reset the password. vote at the AGM.
4.
The details of the person who may be contacted for any
3. In case of any queries, you may refer the Frequently Asked
grievances connected with the facility for e-Voting on the day
Questions (FAQs) for Shareholders and e-voting user
of the AGM shall be the same person mentioned for Remote
manual for Shareholders available at the download section
e-voting.
of www.evoting.nsdl.com or call on toll free no.: 1800 1020
990 and 1800 22 44 30 or send a request at evoting@nsdl.
co.in or Ms. Soni Singh, Asst. Manager, National Securities INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE
Depository Limited, Trade World, ‘A’ Wing, 4th Floor, Kamala AGM THROUGH VC/OAVM ARE AS UNDER:
Mills Compound, Senapati Bapat Marg, Lower Parel,
1. Members will be provided with a facility to attend the AGM
Mumbai – 400 013, at the designated email id – evoting@
through VC/OAVM through the NSDL e-Voting system.
nsdl.co.in or SoniS@nsdl.co.in or at telephone nos.:- +91
Members may access by following the steps mentioned
22 24994545, +91 22 24994559, who will also address the
above for Access to NSDL e-Voting system. After successful
grievances connected with voting by electronic means.
login, you can see link of “VC/OAVM link” placed under
Members may also write to the Company Secretary at the
“Join General meeting” menu against company name. You
Company’s email address investors@havells.com
are requested to click on VC/OAVM link placed under Join
Process for those shareholders whose email ids are not General Meeting menu. The link for VC/OAVM will be available
registered with the depositories for procuring user id and in shareholders/members login where the EVEN of Company
password and registration of email ids for e-voting for the will be displayed. Please note that the members who do not
resolutions set out in this notice: have the User ID and Password for e-Voting or have forgotten
the User ID and Password may retrieve the same by following
1. In case shares are held in physical mode please provide the remote e-Voting instructions mentioned in the Notice to
Folio No., Name of shareholder, scanned copy of the share avoid last minute rush.
certificate (front and back), PAN (self attested scanned copy
of PAN card), AADHAAR (self attested scanned copy of 2. Members are encouraged to join the Meeting through Laptops
Aadhaar Card) by email to investors@havells.com for better experience.
10
3. Further Members will be required to allow Camera and use only) in respect of Statutory Audit to be undertaken for the financial
Internet with a good speed to avoid any disturbance during year 2021-22.
the meeting.
The fee has been proposed after considering various parameters
4. Please note that Participants Connecting from Mobile Devices like technical knowledge, expertise, industry experience, market
or Tablets or through Laptop connecting via Mobile Hotspot standing of the firm and the time and efforts required to be put in
may experience Audio/Video loss due to Fluctuation in their by M/s. Price Waterhouse & Co to conduct the statutory audit of
respective network. It is therefore recommended to use Stable the Company. The proposed fees is also in line with the industry
Wi-Fi or LAN Connection to mitigate any kind of aforesaid benchmarks.
glitches.
The Company has also received consent and eligibility letter

5.
Members who would like to express their views or ask
from the proposed auditors to act as the Statutory Auditors of the
questions during the AGM may register themselves as a
Company, in accordance with the provisions of Section 139 and
speaker by sending their request from their registered email
Section 141 of the Companies Act, 2013 and the Companies (Audit
address mentioning their Name, DP ID and Client ID/ Folio
and Auditors) Rules, 2014.
Number, PAN, Mobile Number at investors@havells.com
latest by 27th June, 2021, Sunday. Those Members who have
registered themselves as a speaker will only be allowed Price Waterhouse & Co (‘the Firm‘) was constituted on 1 st April
to express their views/ ask questions during the AGM. 1991 having Firm Registration No. 304026E. It was converted
The Company reserves the right to restrict the number of into Limited Liability Partnership, i.e., Price Waterhouse & Co
speakers depending on the availability of time for the AGM. Chartered Accountants LLP with effect from 24th July, 2014,
thereby having a new Firm Registration No. 304026E/E300009.
The registered office of the Firm is at Plot No. Y 14, Block EP,
By Order of the Board Sector V, Salt Lake, Electronic Complex Bidhan Nagar, Kolkata
For Havells India Limited 700 091. Price Waterhouse & Co Chartered Accountants LLP
is a separate, distinct and independent member firm of the PW
Sanjay Kumar Gupta India Network of Firms which consists of 12 separate, distinct
Company Secretary and independent member firms, each of which is incorporated
Delhi, May 20, 2021 Membership No. F3348 in accordance with the local legal requirements and are
registered with the Institute of Chartered Accountants of India
Registered Office: (‘Price Waterhouse & Affiliates’). Price Waterhouse & Affiliates
904, 9th Floor, Surya Kiran Building are cumulatively more than 100 years old in India and have
K G Marg, Connaught Place, New Delhi – 110 001 offices in 10 cities in India - Mumbai, Ahmedabad, Gurgaon,
CIN: L31900DL1983PLC016304 Bangalore, Kolkata, Hyderabad, Pune, Chennai, New Delhi
and Jamshedpur. The Firm audits various companies listed on
stock exchanges in India. The Firm has 75 Partners as on date
and many qualified professionals having years of experience
EXPLANATORY STATEMENT PURSUANT TO SECTION
in auditing clients across various sectors. The Chartered
102 OF THE COMPANIES ACT, 2013
Accountant profession in India is governed by the Chartered
ITEM NO. 6 Accountants Act,1949 (‘the Act’).
The Members of the Company at the 33rd Annual General Meeting
(‘AGM’) held on 13th July, 2016 approved the appointment of Accordingly, consent of the members is being sought for passing
M/s S. R. Batliboi & Co. LLP (‘SRB’), Chartered Accountants an Ordinary Resolution as set out at Item No. 6 of the Notice for
(Registration No. 301003E/ E300005) as the Auditors of the appointment of M/s Price Waterhouse & Co as Statutory Auditors of
Company for a second term of five years from the conclusion of the Company for a period of 5 (Five) years.
the said AGM. SRB will complete their second term on conclusion
of this AGM in terms of the said approval and Section 139 of None of the Directors / Key Managerial Personnel of the
the Companies Act, 2013 (‘the Act’) read with the Companies Company / their relatives are, in any way, concerned or
(Audit and Auditors) Rules, 2014. The present remuneration of interested, financially or otherwise, in the Resolution set out at
SRB for conducting the audit for the financial year 2020-21, is Item No. 6 of the Notice.
` 1.40 crores (Rupees One Crore Forty lakhs only) subject to
TDS and GST, as applicable apart from out of pocket expenses The Board recommends the Ordinary Resolution set out at Item
incurred. No. 6 of the Notice for approval by the shareholders.
The Board of Directors of the Company upon the recommendation ITEM NO. 7
of the Audit Committee recommended for the approval of the The Board, on the recommendation of the Audit Committee, in its
Members, the appointment of M/s Price Waterhouse & Co Meeting held on 20th May, 2021 has approved the appointment
Chartered Accountants LLP (Registration No. 304026E/ E300009) and remuneration of M/s. Sanjay Gupta & Associates, Cost
as Statutory Auditors of the Company for a period of five years from Accountants, (Registration No. 00212), as the Cost Auditors
the conclusion of this Annual General Meeting till the conclusion of the Company to conduct the audit of the cost records of
of the 43rd (Forty Third) Annual General Meeting of the Company the Company for the Financial Year 2021-22 at a fee of ` 9.00
at a remuneration of ` 1.40 crores (Rupees One Crore Forty lakhs Lakhs subject to TDS, GST etc., as applicable, apart from out of
11
pocket expenses, as remuneration for cost audit services for the interested, financial or otherwise, in the Resolution set out at Item
Financial Year 2021-22. No. 8 of this Notice.
In accordance with the provisions of Section 148 of the Act read with Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure
the Companies (Audit and Auditors) Rules, 2014, the remuneration Requirements) Regulations, 2015 are set out in the annexure to
payable to the Cost Auditors has to be ratified by the shareholders the Explanatory Statement. Other details as required under ICSI
of the Company. Secretarial Standard SS-2 are also included in the Corporate
Governance Report of the Integrated Annual Report of the
Accordingly, consent of the members is being sought for passing Company.
an Ordinary Resolution as set out at Item No. 7 of the Notice for
ratification of the remuneration payable to the Cost Auditors for the
ITEM NO. 9
Financial Year ending 31st March, 2022.
The Board of Directors upon the recommendation of the Nomination
None of the Directors / Key Managerial Personnel of the and Remuneration Committee, appointed Shri Ashish Bharat Ram
Company / their relatives are, in any way, concerned or (DIN: 00671567) as an Additional Director with effect from 20th
interested, financially or otherwise, in the Resolution set out at May, 2021 pursuant to Section 161(1) of the Companies Act, 2013
Item No. 7 of the Notice. and as an Independent Director pursuant to Section 149 of the
Companies Act, 2013 and the SEBI Listing Regulations. In terms
The Board recommends the Ordinary Resolution set out at Item No. of the provisions of Section 161(1) of the Companies Act, 2013, Shri
7 of the Notice for approval by the Shareholders. Ashish Bharat Ram will hold office only upto the date of ensuing
Annual General Meeting.
ITEM NO. 8
The Company has received consent in writing to act as Director
The Board of Directors upon the recommendation of the Nomination in Form DIR-2 and intimation in Form DIR-8 to the effect that he
and Remuneration Committee, appointed Smt.Namrata Kaul (DIN: is not disqualified u/s 164(2) to act as Director. The Company
00994532) as an Additional Director with effect from 20th January,
has also received declaration from him that he meets the criteria
2021 pursuant to Section 161(1) of the Companies Act, 2013
of independence as prescribed u/s 149(6) of the Companies
and as an Independent Director pursuant to Section 149 of the
Act, 2013 and the SEBI Listing Regulations. In the opinion of the
Companies Act, 2013 and the SEBI Listing Regulations. In terms of
Board, Shri Ashish Bharat Ram fulfils the conditions specified
the provisions of Section 161(1) of the Companies Act, 2013, Smt.
in the Act and rules made thereunder for his appointment as an
Namrata Kaul will hold office only upto the date of ensuing Annual
Independent Director of the Company and is independent of the
General Meeting.
management.
The Company has received consent in writing to act as Director

Shri Ashish Bharat Ram, being eligible and offering himself for
in Form DIR-2 and intimation in Form DIR-8 to the effect that she
appointment, is proposed to be appointed as an Independent
is not disqualified u/s 164(2) to act as Director. The Company has
Director for a First Term of 5 (Five) years from the date of this
also received declaration from her that she meets the criteria of
AGM upto the conclusion of the AGM to be held in the calendar
independence as prescribed u/s 149(6) of the Companies Act,
year 2026.
2013 and the SEBI Listing Regulations. In the opinion of the Board,
Smt. Namrata Kaul fulfils the conditions specified in the Act and
rules made thereunder for her appointment as an Independent Copy of the draft letter for appointment of Shri Ashish Bharat Ram
Director of the Company and is independent of the management. as an Independent Director setting out the terms and conditions
would be available for inspection without any fee by the Members at
Smt. Namrata Kaul, being eligible and offering herself for the Registered Office of the Company during normal business hours
appointment, is proposed to be appointed as an Independent on any working day till the date of AGM.
Director for a First Term of 5 (Five) years from the date of this
AGM upto the conclusion of the AGM to be held in the calendar The Board upon the recommendation of the Nomination and
year 2026. Remuneration Committee, in its Meeting held on 20th May, 2021
has approved the appointment of Shri Ashish Bharat Ram as an
Copy of the draft letter for appointment of Smt. Namrata Kaul as an Independent Director and recommends the Ordinary Resolution for
Independent Director setting out the terms and conditions would the approval by the Shareholders of the Company.
be available for inspection without any fee by the Members at the
Registered Office of the Company during normal business hours on Except Shri Ashish Bharat Ram, no other Director and Key
any working day till the date of AGM. Managerial Personnel of the Company and their relatives is
concerned or interested, financial or otherwise, in the Resolution set
The Board upon the recommendation of the Nomination and out at Item No. 9 of this Notice.
Remuneration Committee, in its Meeting held on 20th May, 2021 has
approved the appointment of Smt. Namrata Kaul as an Independent Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure
Director and recommends the Ordinary Resolution for the approval Requirements) Regulations, 2015 are set out in the annexure to
by the Shareholders of the Company. the Explanatory Statement. Other details as required under ICSI
Secretarial Standard SS-2 are also included in the Corporate
Except Smt. Namrata Kaul, no other Director and Key Managerial Governance Report of the Integrated Annual Report of the
Personnel of the Company and their relatives is concerned or Company.
12
ITEM NO. 10 In terms of Section 149 of the Companies Act, 2013, an Independent
Shri Jalaj Ashwin Dani (DIN: 00019080) was appointed as an Director is eligible for re-appointment on passing of Special
Resolution.
Independent Director on the Board of Directors of the Company
in the Annual General Meeting (AGM) held in the Calendar year
Shri Upendra Kumar Sinha being eligible and offering himself
2018 to hold office for a period of 3 (Three) years with effect from
for re-appointment, is proposed to be appointed as an
20th July, 2018 (the date of AGM 2018) upto the conclusion of
Independent Director for a Second Term of 5 (Five) years from
Annual General Meeting of the Company to be held in the calendar
the date of ensuing AGM upto the conclusion of the AGM to
year 2021.
be held in the calendar year 2026. In the opinion of the Board,
Shri Upendra Kumar Sinha fulfils the conditions specified in the
In terms of Section 149 of the Companies Act, 2013, an Independent
Act and rules made thereunder for his re-appointment as an
Director is eligible for re-appointment on passing of Special
Independent Director of the Company and is independent of
Resolution. the Management.
Shri Jalaj Ashwin Dani being eligible and offering himself for re- In the Performance Evaluation conducted for the year 2020-21,
appointment, is proposed to be appointed as an Independent the performance of Shri Upendra Kumar Sinha was evaluated
Director for a Second Term of 5 (Five) years from the date of ensuing satisfactory in the effective and efficient discharge of his role and
AGM upto the conclusion of the AGM to be held in the calendar year responsibilities as an Independent Director of the Company. The
2026. In the opinion of the Board, Shri Jalaj Ashwin Dani fulfils the Board and its allied Committees have benefitted from his relevant
conditions specified in the Act and rules made thereunder for his specialisation and expertise.
re-appointment as an Independent Director of the Company and is
independent of the Management. Details on his attendance of various Board and Committee Meetings
held during the last financial year are included in the Corporate
In the Performance Evaluation conducted for the year 2020-21, the Governance Report of the Integrated Annual Report.
performance of Shri Jalaj Ashwin Dani was evaluated satisfactory in
the effective and efficient discharge of his role and responsibilities The Board upon the recommendation of the Nomination and
as an Independent Director of the Company. The Board and its Remuneration Committee, in its Meeting held on 20th May, 2021, has
allied Committees have benefitted from his relevant specialisation approved the re-appointment of Shri Upendra Kumar Sinha as an
and expertise. Independent Director and recommends the same for the approval
by the Shareholders of the Company by way of Special Resolution.
Details on his attendance of various Board and Committee Meetings
held during the last financial year are included in the Corporate Except Shri Upendra Kumar Sinha, no other Director and Key
Governance Report of the Integrated Annual Report. Managerial Personnel of the Company and their relatives is
concerned or interested, financial or otherwise, in the Resolution set
The Board upon the recommendation of the Nomination and out at Item No. 11 of this Notice.
Remuneration Committee, in its Meeting held on 20th May, 2021,
has approved the re-appointment of Shri Jalaj Ashwin Dani as Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure
an Independent Director and recommends the same for the Requirements) Regulations, 2015 is set out in the annexure to
the Explanatory Statement. Other details as required under ICSI
approval by the Shareholders of the Company by way of Special
Resolution.
Governance Report of the Integrated Annual Report of the Company.
Except Shri Jalaj Ashwin Dani, no other Director and Key Managerial
Personnel of the Company and their relatives is concerned or ITEM NO. 12
interested, financial or otherwise, in the Resolution set out at Item Shri T. V. Mohandas Pai (DIN: 00042167) was appointed as a Director
No. 10 of this Notice. whose period of office was liable to determination by retirement by
rotation, by the Shareholders in the Annual General Meeting (AGM)
Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure of the Company held in calender year 2018 to hold office for a
Requirements) Regulations, 2015 is set out in the annexure to period of 3 (Three) years with effect from 20th July, 2018 (the date of
the Explanatory Statement. Other details as required under ICSI AGM 2018) upto the conclusion of AGM of the Company to be held
Secretarial Standard SS-2 are also included in the Corporate in the calendar year 2021.
Governance Report of the Integrated Annual Report of the
Company. In the Performance Evaluation conducted for the year 2020-
21, the performance of Shri T. V. Mohandas Pai was evaluated
satisfactory in the effective and efficient discharge of his role
ITEM NO. 11
and responsibilities as a Director of the Company. The Board has
Shri Upendra Kumar Sinha (DIN: 00010336) was appointed as an benefitted from his relevant specialisation and expertise. Details
Independent Director on the Board of Directors of the Company on his attendance of various Board Meetings held during the last
in the Annual General Meeting (AGM) held in the Calendar year financial year are included in the Corporate Governance Report
2018 to hold office for a period of 3 (Three) years with effect of the Integrated Annual Report.
from 20th July, 2018 (the date of AGM 2018) upto the conclusion
of Annual General Meeting of the Company to be held in the The Board upon the recommendation of the Nomination and
calendar year 2021. Remuneration Committee, in its Meeting held on 20th May, 2021,
13
has approved the re-appointment of Shri T. V. Mohandas Pai as a Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure
Director liable to retire by rotation, for a further period of 5 (five) Requirements) Regulations, 2015 is set out in the annexure to
years upto the date of AGM of the Company to be held in the the Explanatory Statement. Other details as required under ICSI
calendar year 2026 and recommends the same for the approval by Secretarial Standard SS-2 are also included in the Corporate
the Shareholders of the Company. Governance Report of the Integrated Annual Report of the Company.
Except Shri T. V. Mohandas Pai, no other Director and Key Managerial ITEM NO. 14
Personnel of the Company and their relatives is concerned or
The prevailing 3 (Three) year term of Shri Siddhartha Pandit
interested, financial or otherwise, in the Resolution set out at Item
(DIN: 03562264) as a Whole-time Director of the Company which
No. 12 of this Notice.
commenced from 29th May, 2019 shall expire on 28th May, 2022.
Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure

The Board of Directors upon the recommendation of the Nomination
Requirements) Regulations, 2015 is set out in the annexure to
and Remuneration Committee, in its Meeting held on 20th May,
the Explanatory Statement. Other details as required under ICSI
2021 and subject to the approval of members of the Company,
re-appointed Shri Siddhartha Pandit, as a Whole-time Director
Governance Report of the Integrated Annual Report of the Company.
of the Company for a further period of 3 (Three) years w.e.f.
29th May, 2022.
ITEM NO. 13
Shri Puneet Bhatia (DIN: 00143973) was appointed as a Director Pursuant to the provisions of Sections 196, 197, 198, 203 read
whose period of office was liable to determination by retirement by with Schedule V and other applicable provisions, if any, of the
rotation, by the Shareholders in the Annual General Meeting (AGM) Companies Act, 2013, the Board recommends the re-appointment
of the Company held in calender year 2018 to hold office for a of Shri Siddhartha Pandit, as a Whole-time Director of the Company,
period of 3 (Three) years with effect from 20th July, 2018 (the date of to the Members for their approval.
AGM 2018) upto the conclusion of AGM of the Company to be held
in the calendar year 2021. Except Shri Siddhartha Pandit, no other Director(s) and Key
Managerial Personnel of the Company and their relatives is
In the Performance Evaluation conducted for the year 2020-21, the concerned or interested, financial or otherwise, in the Resolution set
performance of Shri Puneet Bhatia was evaluated satisfactory in out at Item No. 14 of this Notice.
the effective and efficient discharge of his role and responsibilities
as a Director of the Company. The Board has benefitted from his Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure
relevant specialisation and expertise. Details on his attendance Requirements) Regulations, 2015 is set out in the annexure to
of various Board Meetings held during the last financial year are the Explanatory Statement. Other details as required under ICSI
included in the Corporate Governance Report of the Integrated Secretarial Standard SS-2 are also included in the Corporate
Annual Report. Governance Report of the Integrated Annual Report of the Company.
The Board upon the recommendation of the Nomination and

By Order of the Board
Remuneration Committee, in its Meeting held on 20th May, 2021, has
For Havells India Limited
approved the re-appointment of Shri Puneet Bhatia as a Director
liable to retire by rotation, for a further period of 5 (five) years
Sanjay Kumar Gupta
upto the date of AGM of the Company to be held in the calendar
Company Secretary
year 2026 and recommends the same for the approval by the
Delhi, May 20, 2021 Membership No. F3348
Shareholders of the Company.
Registered Office:
Except Shri Puneet Bhatia, no other Director and Key Managerial
904, 9th Floor, Surya Kiran Building
Personnel of the Company and their relatives is concerned or
K G Marg, Connaught Place, New Delhi – 110 001
interested, financial or otherwise, in the Resolution set out at Item
CIN: L31900DL1983PLC016304
No. 13 of this Notice.
14
ANNEXURE
PURSUANT TO REGULATION 36 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECRETARIAL
STANDARD 2 ISSUED BY ICSI, INFORMATION ABOUT THE DIRECTORS PROPOSED TO BE APPOINTED/ RE-APPOINTED IS FURNISHED BELOW:
Name of Date of Birth Qualification Nature of Expertise Name of Companies Name of Committees of the
Director (No. of Equity (Relationship with in which he/ she holds Companies of which he/ she
(DIN) Shares held) other Directors) Directorship# holds Membership
Shri Ameet 16th January, BE (Electronics & Shri Ameet Kumar Gupta has • Havells India Limited Havells India Limited
Kumar Gupta 1972 Communication) DU, been working with the QRG • Q
RG Enterprises - Stakeholders Relationship/
MBA (Marketing & group for over 2 decades Limited Grievance Redressal
Finance) from Wake and is actively involved in Committee- Member
(DIN: 00002838) (Nil) Forest University, North new business development • QRG Medicare Limited - Executive Committee- Member
Carolina, USA activities along with Shri Anil • Q
RG Investments and
Rai Gupta. In addition, he Holdings Limited QRG Enterprises Limited
has been accredited with - Audit Committee- Member
new product introduction - Nomination and Remuneration
(Related with Shri Surjit and development and also Committee- Member
Kumar Gupta) for setting up new plants and - Corporate Social Responsibility
manufacturing facilities for Committee- Member
the QRG group. His functions - Executive Committee- Member
include spearheading new
projects being undertaken by QRG Medicare Limited
the organisation. - Audit Committee- Member
- Nomination and Remuneration
Committee- Member
- Executive Committee- Member
QRG Investments and Holdings

Limited
- Audit Committee- Member
- ALCO Committee- Member
Shri Surjit 13th January, F.Sc. from Punjab Shri Surjit Kumar Gupta is • Havells India Limited Havells India Limited
Kumar Gupta 1942 University and holds a an esteemed member of the • Q
RG Enterprises - Audit Committee- Member
Diploma in Mechanical Promoter Group and is one Limited - Nomination and Remuneration
Engineering from State of the First Directors of the Committee- Member
(DIN: 00002810) (Nil) Board of Technical Company. He has been on • Q
RG Investments and - Executive Committee- Chairman
Education, Punjab. the Board of Directors since Holdings Limited
incorporation on 8th August, • QRG Medicare Limited QRG Investments and Holdings
1983. Under his guidance Limited
the Company has emerged - Audit Committee- Member
(Related with Shri as a leading organisation in - ALCO Committee- Member
Ameet Kumar Gupta) the Electrical Industry with an
outstanding prominence for high- QRG Enterprises Limited
quality engineered products. - Corporate Social Responsibility
He was the prime motivator Committee- Chairman
for initial exposures of Havells - Executive Committee- Chairman
to international manufacturers
and technology. Havells has QRG Medicare Limited
successfully entered into several - Executive Committee- Chairman
foreign alliances under his
supervision.
Smt. Namrata 15th March, B. Com (H), LSR, MBA, Smt. Namrata Kaul is a career • Havells India Limited Havells India Limited
Kaul 1964 IIM (Ahemadabad), banker with extensive experience • B
hopal Smart - Nomination and Remuneration
Chevening scholar, of over 30 years across Treasury, City Development Committee- Member
London School of Corporate Banking, Debt Capital Corporation Limited
(DIN: 00994532) (Nil) Economics markets and Corporate finance chneider Electric Infrastructure
S
in India and UK. As Managing • P
rime Securities Limited
Director at Deutsche Bank AG, Limited - Audit Committee- Member
Smt. Kaul led the Corporate Bank • S
chneider Electric - Risk Management Committee-
(Not related with any practice as its India Head. In Infrastructure Limited Member
Director/ KMP of the Deutsche Bank U.K., as part of • P
rime Research and
Company) the Strategic Leadership Team Advisory Limited Prime Securities Limited
aiming to strengthen cross border - Audit Committee- Member
networks, she set up an Asia Desk - Stakeholder Relationship-
in London. She was a member Member
of the Deutsche Bank Asia - Nomination and Remuneration
Executive Committee, a Member Committee- Member
of the Board of Deutsche Bank - Corporate Social Responsibility
India and a founding member Committee- Chairman
of the Deutsche Bank Diversity
Council.
Actively engaged in the Social

Development sector, Smt. Kaul
is Vice Chair and Director on
the Supervisory Board of Care
International (Geneva).
15
Director (DIN) (No. of Equity (Relationship with in which he/ she Companies of which he/ she
Shares held) other Directors) holds Directorship# holds Membership
Shri Ashish Bharat 31st December, Degree in Economics Shri Ashish Bharat Ram took over as • Havells India Limited Kama Holding Limited
Ram 1968 from Delhi University MD of SRF Ltd. in January 2007. Prior - Stakeholders Relationship
and an MBA from The to joining SRF Ltd. in 1994, he had • SRF Limited Comittee- Chairman
Johnson Graduate School successful stints at American Express • Transport Corporation - Committee of Directors- financial
(DIN: 00671567) (Nil) of Management, Cornell Bank, Toyota Motor Corporation, Japan of India Limited resources- Member
University and DCM Toyota handling a variety of
functions that included Sales, Strategy, • Kama Holdings - Nomination and remuniration
Marketing, TQM, among others. Limited Committee- Member
- Risk Management Committee-
(Not related with any • SRF Holiday Home Chairman
He has been the Regional Chair for Limited
Director/ KMP of the South Asia for the Young Presidents SRF Limited
Company) Organization (YPO) and is an active • Shri Educare Limited - Stakeholders Relationship
member of the Confederation of Indian Committee- Member
Industry (CII). - Committee of Directors- Financial
Resources- Member
- Risk Management Committee-
Chairman
ransport Corporation of India
T
Limited
- Compensation/ Nomination and
Remuneration Committee -
Chairman
- Corporate Social Responsibility
Committee- Chairman
- Corporate & Restructuring
Committee- Chairman
Shri Jalaj Ashwin 20th October, Chemical Engineering Shri Jalaj Ashwin Dani has spent over 2 • Havells India Limited Havells India Limited
Dani 1969 from USA. Shri Dani decades in various capacities with Asian - Stakeholders Relationship/
also holds Certificate Paints, a leading paint company in India • Housing Grievance Redressal Commiittee-
for participation in the with presence in 19 countries across the Development Member
(DIN: 00019080) (Nil) Advanced Management globe. He was the President of Indian Finance Corporation - Corporate Social Responsibility
Program conducted by Paints Association (IPA) for 2015-17 and Limited Committee- Chairman
INSEAD, Fontainebleau, has been chairing the Paints and Coatings • Gujrat Organics - Enterprises Risk Management
Paris. Sector Skill Council (PCSC) from its Limited Committee- Member
inception 2015. Shri Dani is also actively Housing Development Finance
involved with the CII (Confederation of • Rise Worldwide Corporation Limited
Indian Industry), YPO (Young President's Limited - Audit and Governance Committee-
(Not related with any Organisation), FICCI (Federation of Indian Chairman
Director/ KMP of the Chambers of Commerce and Industry) • Hitech Specialities
Solutions Limited - Stakeholders Relationship
Company) and some other Business Councils in Committee- Member
various capacities. He is also part of the - Corporate Social Responsibility
Pradhan Mantri Kaushalya Vikas Yojana Committee- Member
(PMKVY) Steering Committee. - Directors- Member
- IT Strategy Committee- Member
- Wilful Defaulter Review- Member
RISE Worldwide Limited
- Audit Committee- Chairman
- Corporate Social Responsibility
Committee- Chairman
- Nomination & Remuneration
Committee- Member
Shri Upendra 2nd March,1952 IAS-1976 batch. Shri Upendra Kumar Sinha is the former • Havells India Limited Havells India Limited
Kumar Sinha He holds an M.Sc. and Chairman, SEBI. Prior to this, Shri Sinha - Audit Committee- Chairman
LLB degree. was Chairman and Managing Director • Vedanta Limited - Stakeholder Relationship/
of UTI Asset Management Company • Housing Development Grievance Redressal Committee-
(DIN: 00010336) (Nil) Ltd. and Chairman of Association of Mutual Finance Corporation Chairman
Funds in India. Shri Sinha has held several Limited Vedanta Limited
(Not related with any responsible positions with distinction in - Audit Committee- Member
Director/ KMP of the the State and Central Governments. He • Max Healthcare - Stakeholder Relationship
Company) was Joint Secretary (Banking) and Joint Institute Limited Committee- Chairman
Secretary (Capital Markets), Ministry of - Corporate Social Responsibility
Finance, GoI. Shri U K Sinha was the Committee- Member
Chairman of the Working Group on Foreign - Sustainability Committee- Member
Investment in India formed by the GoI. He - Nomination and Remuneration
was a member of several committees set Committee- Chairman
up by the Government of India including
the Committees on Liquidity Management, Housing Development Finance
FIIs, Corporate Bond Market and Investor Corporation Limited
Protection. Shri Sinha is credited with - Nomination and Remuneration
starting the micro pension movement in the Committee- Member
country. He was responsible for drafting the Max Healthcare Institute Limited
SEBI (Amendment) Act, 2002, UTI (Repeal) - Audit Committee- Member
Act, 2002, the Securities Law Amendment - Nomination and Remuneration
Act, 2004 and the PFRDA Bill, 2005. Committee- Member
16
Director (DIN) (No. of Equity (Relationship with in which he/ she holds Companies of which he/
Shares held) other Directors) Directorship# she holds Membership
Shri T.V. 5th November, FCA, LLB, B.Com The fundamental activist in the development • Havells India Limited Havells Inida Limited
Mohandas Pai 1958 of the IT services industry in India, Shri T. V. - Enterprises Risk Management
Mohandas Pai have successfully instituted Committee- Member
several industry-firsts in the Country. Prior
(DIN: 00042167) (Nil) (Not related with any to this, he was a Member of the Board at
Director/KMP of the Infosys Ltd., where he also served as CFO
Company) and the lead for Human Resources and
Education & Research. He co-founded
Aarin Capital Partners in early 2012 to fund
opportunities in Health Care, Life Sciences,
Education and Technology-led businesses.
He is also the Chairman of SEBI Primary
Markets Advisory Committee (PMAC). He
was a Trustee of the International Financial
Reporting Standards (IFRS) Foundation
and a Member of the Dr. Anil Kakodkar
Committee on Autonomy for the IITs and
the Karnataka Knowledge Commission.
He is currently a Member on the Boards of
IIT, Hyderabad. Chairperson, FICCI Higher
Education Committee. He was a Member of
various important national committees like
the Kelkar Committee, constituted by the
Ministry of Finance, GoI; the Non-Resident
Taxation Committee as well as the Chair
of the Karnataka ICT Group 2020. A keen
philanthropist, Sh. T.V. Mohandas Pai helped
set up the Akshaya Patra Foundation in
Bangalore with other likeminded persons. In
April 2015, the President of India awarded
him the Padma Shri in recognition of his
efforts for the betterment of the nation in
areas of Trade and Industry.
Shri Puneet 16th December, B.Com Honors, SRCC, Shri Puneet Bhatia is the successful • Havells India Limited Shriram Capital Limited
Bhatia 1966 MBA, IIM-Calcutta. Managing Director and Country Head of - Audit Committee- Member
India for TPG Asia. Prior to joining TPG • Jana Capital Limited - Nomination and Remuneration
Asia in April 2002, Shri Puneet Bhatia was • Shriram Capital Limited Committee- Member
(DIN: 00143973) (Nil) Chief Executive, Private Equity Group for
(Not related with any GE Capital India, where he was responsible • S
ai Life Sciences R.R Kabel Limited
Director/ KMP of the for conceptualizing and creating its direct Limited - Nomination & Remuneration
Company) and strategic private equity investment Committee- Member
• R.R Kabel Limited - Corporate Social Responsibility
group. Before that, he was also associated
with ICICI Ltd. from 1990 to 1995 in the Committee- Member
Project and Corporate Finance group Sai Life Sciences Limited
and thereafter worked as Senior Analyst - Nomination & Remuneration
with Crosby Securities from 1995 to 1996 Committee- Member
covering the automobiles and consumer - Corporate Social Responsibility
sectors. Committee- Member
Shri Siddhartha 30th May,1968 BA, LLB Shri Siddhartha Pandit has been heading • Havells India Limited None
Pandit the Legal Department of the Company since
2015. LEP (Leadership Excellence Program)
(DIN: 03562264) (4,652 Equity from Harvard Business School and BA LLB
Shares of ` 1/- (Not related with any from Delhi University, Shri Pandit is an
each) Director/ KMP of the astute legal professional with over 27 years
Company) of extensive experience across industries
with expertise in Contract Drafting &
Negotiations, Litigation Management (Civil
& Criminal), Dispute Resolution, Mergers
and Aquisitions, Statutory Compliances,
Intellectual Property Rights (IPR) etc.
He began his career by gaining court
experience under Mr. P.P Malhotra (Sr.
Advocate) and also worked with Rajinder
Narain & Co. Later he moved into Corporate
to work with Max India, Samsung, Ciena,
Carrier and Tower Vision. In his last
assignment, he was associated with Indus
Towers as VP - Legal.
Directorship indicates directorship in Indian Public Companies including Havells India Limited.
#
Note: For other details, please refer to the Corporate Governance Section of the Integrated Annual Report.
17
HAVELLS INDIA LIMITED
Regd. Office: 904, 9th Floor, Surya Kiran Building, K G Marg, Connaught Place, New Delhi - 110 001
Corp. Office: QRG Towers, 2D, Sector – 126, Expressway, Noida (U.P.) – 201 304
Tel. No.: 0120-3331000, Fax No.: 0120-3332000, E-mail: investors@havells.com
Website: www.havells.com, CIN: L31900DL1983PLC016304
Dear Member,
Sub: Updation of KYC Details in the Master Data
In order to ensure that all communications and monetary benefits are received promptly by all Shareholders holding shares in
physical form, the Company, through periodic communiques, advises such shareholders to notify to the Company their PAN
details and any change/ updation in their address/ bank details/ email id etc. under the signatures of sole/ first named joint
holder along with relevant supporting documents.
th
SEBI vide its Circular dated 20 April, 2018 had also greatly emphasized on collection of the Bank Account details and the
PAN details of the shareholders in order to enable Companies/ RTAs to raise standards and provide improved services to the
Shareholders.
In this background, we are attaching herewith a KYC Form for all the shareholders holding shares in physical form to get all
their details updated in the Master Data.
Kindly note that this Form is only for the purpose of master data Updation of Shareholders holding Shares in
Physical form.
In case of Dematerialised Shareholding, the Company takes note of the details furnished only by the Depositories, whenever
such information is available. You are therefore requested to provide such information only to your Depository Participant
(DP), in case the shares are held in demat form.
We recommend and request you to get your details updated in the master data and submit the attached KYC Form to
the RTA or Company at its Corporate Office at Havells India Limited, QRG Towers, 2D, Sector – 126, Expressway, Noida
(U.P.) – 201 304.
Assuring you of our best services.
Thanking you.
Yours faithfully,
For Havells India Limited
(Sanjay Kumar Gupta)

Company Secretary
KYC FORM
(Only for physical shareholding)
To, Date:______//____//____________
The Secretarial Department
HAVELLS INDIA LIMITED Folio No:______________________
QRG Towers, 2D Sector – 126,
Expressway, Noida (U.P.) – 201 304 No of Shares:______________________
Dear Sir/ Madam,
We wish to update the KYC and in this matter are forwarding herewith the required supporting documents by ticking in the
appropriate checkbox below
A For registering PAN of the registered and/ or joint shareholders (as applicable)
Registered shareholder Joint holder 1 Joint holder 2 Joint holder 3
Please attach self- attested legible copy of PAN card (exempted for Sikkim Shareholders).
B For registering Bank details of the registered shareholder

1. In cases wherein the original cancelled cheque leaf has the shareholder’s name printed
Aadhar/ Passport/ utility bill Original cancelled cheque leaf
2. In cases wherein the cancelled cheque leaf does NOT contain the shareholder’s name printed on it
Aadhar/ Passport/ Utility bill Original cancelled cheque leaf Bank Passbook/ Bank Statement
Please note that bank passbook/ Bank Statement should be duly attested by the officer of the same bank with his
signature, name, employee code, designation, bank seal & address stamp, phone no. and date of attestation.
C For updating the Specimen Signature of the registered and/ or joint shareholders
1. In cases wherein the original cancelled cheque leaf has the shareholder’s name printed
Affidavit Banker verification Original cancelled cheque leaf
2. In cases wherein the cancelled cheque leaf does NOT contain the shareholder’s name printed on it
Affidavit Banker verification Original cancelled cheque leaf Bank Passbook/ Bank Statement
• he format of Banker Verification is available on the website of the Company www.havells.com under shareholder’s
T
corner in investor relations section.
• Please note that Bank passbook/ Bank Statement should be duly attested by the officer of the same bank with his
signature, name, employee code, designation, bank seal & address stamp, phone no. and date of attestation.
D For Updating the email id for the purpose of receiving all communications in electronic mode
_________________________________________________________________________________________________________
E For updating the Mobile No
I /We hereby state that the above mentioned details are true and correct and we consent towards updating the particulars
based on the self-attested copies of the documents enclosed with this letter by affixing my/our signature(s) to it
Sign:_______________ Sign:_______________ Sign:__________________ Sign:__________________

Registered holder Joint holder 1 Joint holder 2 Joint holder 3
havells india limited
3
rd
Integrated Report 2020-21
38TH ANNUAL Report
Creating Delivering Sustaining

What’s
Inside?
Introduction
02 04 06 07 08 10 12
Creating. Chairman’s Our New Our Direct A Complete Performance Leadership for
Delivering. Message Product Presence Consumer Highlights Sustainable
Sustaining. Launch Across India Durable Player Value Creation
and Delivery
Integrated Statutory Financial

Report 14 Report 45 Statements 142
Our Strategic Business 14 Directors’ Report 45 Standalone 142
Objectives Business 97 Financial Statements
Risk Management Framework 16 Responsibility Report Consolidated 222
Our Business Model 20 Management Discussion 106 Financial Statements
Financial Capital 22 and Analysis 10 Years Progress 309
Corporate 117 at a Glance
Manufactured Capital 24
Governance Report
Intellectual Capital 28
Human Capital 32
Social and 36
Relationship Capital
Natural Capital 42
Corporate Information 44
The Statutory Reports and Financial Statements which are part of this report, adhere to the requirements of
the Companies Act, 2013 (including the rules made thereunder), the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, Indian Accounting Standards and the
applicable Secretarial Standards. The financial information of the Integrated Report has been extracted from
the audited financial statements and the non-financial information from the Sustainability Report. For more
details, please refer to Financial Statements and Statutory Reports.
Those charged with governance at Havells have provided direction for the report and reviewed its content.
This report discloses pertinent information material to Havells’ value creation process in the short, medium
and long-term.
Forward-looking Statements
Statements in this Report describing the Company’s objectives, projections, estimates and expectations may be ‘forward-looking
statements’ within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed
or implied. Important factors that could make a difference to the Company’s operations include economic conditions affecting demand/
supply and price conditions in the domestic and overseas markets in which the Company operates, changes in government regulations,
tax laws and other statutes and incidental factors. We neither assume any obligation nor intend to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
To achieve our vision
To be a globally
through business
recognised corporation
ethics, global
known for excellence, reach, technological
governance, consumer expertise,
delight and fairness building long-term
to each stakeholder relationships with
including the society all our associates,
and environment in customers, partners
which we operate. and employees.
Vision mission
Values
CUSTOMER LEADERSHIP INTEGRITY AND PURSUIT OF
DELIGHT BY EXAMPLE TRANSPARENCY EXCELLENCE
A commitment A commitment to A commitment to be A commitment to

to surpass set standards for ethical, sincere strive relentlessly, to
our customer our business and and open in constantly improve
expectations transactions based our dealings ourselves, our teams,
on mutual trust our services and
products so as to
become the
best-in-class
Creating. Delivering. Sustaining.

At Havells India, sustainability is embedded and
integrated into our core business strategy.
we maintain the integrity of our bottom line and continue to have
a values-driven approach for long-term success. We assess our
business model from a sustainability lens, which involves three key
elements – value proposition, value creation and value capture.
Robust balance sheet, domestic

manufacturing, transparent and fair
trade practices and increasing the
depth of our supply chain have helped
to create a long-term sustainable
business model. Regular and astute
investment in technology, R&D and
Brand have enabled to build a strong
and scalable portfolio.
We maintain a constant focus on

sharpening our competitive edge on all
With aligned goals, Sustaining.
fronts – operational efficiency, optimal
mission and
use of assets, high level of automation values – and a
and backward integration. Strong well-defined strategy,
relationships with dealers, vendors and
Delivering.
we are creating,
an effective governance framework
delivering and sustaining
have been the key to our enduring
enterprise. An effective organisational value for all our
culture, environment-friendly and stakeholders. Our Creating.
socially responsible practices further well-crafted business
help deliver holistic change to achieve
strategies, solid
long-term social and environmental
sustainability
foundation and strong
lineage fosters
longevity and brings
resilience to scale.
02
Integrated Annual Report 2020-21
Our
Introduction 01-13
Stakeholders
Consumers
Committed to Investors
Value Creation Employees
This is our third integrated report which
Media & Analysts
articulates our approach to value creation
Dealers & Retailers
by incorporating other capitals, besides
Local Communities
Integrated Report
Financial Capital, like Manufactured, Social,
Intellectual, Human and Natural Capital. Suppliers
Regulators
Contributing to UN Our material matters Aligned with IIRC

Sustainable Development Our integrated report contains the results framework
14-44
Goals (UN-SDGs) of the materiality assessment, which The Report discloses financial and
informs the content and structure of our non-financial performance of Havells’
Our strategy, developed through
annual report that is segregated into
internal and external engagement, operations across India for the reporting
Statutory Reports
key issues: (a) Our business model:
informed by an analysis of opportunities period from 1st April 2020 to 31st March
how we create value; (b) Outcomes:
and risks, includes long-term targets 2021. This Report is prepared in line
significant impact and influence of our
that are aligned with the United Nations activities on the six capitals; (c) The with the requirements of the Integrated
Sustainable Development Goals. For external environment: material risks and Reporting framework suggested by
further details on UN-SDGs mapping, opportunities impacting value creation; the International Integrated Reporting
please refer our Sustainability Report (d) Stakeholders: material interests Council (IIRC).
for the Financial Year 2020-21. of key participants; and (e) Strategy:
implications of our business model.
45-141
Creating value through Six Capitals
Financial Statements
FINANCIAL MANUFACTURED INTELLECTUAL

Access to cost-effective financial Substantial investment in purchase, Delivering on our strategy and
capital is an essential basis for development and maintenance of our business model requires a strong
sustaining and creating further value plants and equipment has given us the performance-based culture and
across all capital stocks capacity to generate long-term returns continuous innovation in processes
142-309
and technology to produce most

efficient and effective outcomes
HUMAN NATURAL SOCIAL & RELATIONSHIP

Everything we do depends on the Our business model converts natural Our trusted relationship with our
skills, knowledge and experience of resources into sustainable, stakeholders helps us secure our
our employees and the social and economic value reputation enabling us to deliver
leadership team on our vision and mission
03
Chairman’s Message
Our Valued Shareholders,

I am pleased to present the
Integrated Report of your
Company for the financial
year 2020-21.
A challenging year exemplary contribution and efforts. Creating, delivering and

The year was indeed unique as the I would single out our factory staff, the sustaining
COVID-19 contagion ravaged socio- frontline staff, supervisors and supply Havells has always believed in creating
economic developments globally. chain team for their inexhaustible a long-term sustainable business with
We are living through unprecedented energy to keep going and fulfil an innovative product development,
times. When it felt like the worst was deliveries against all odds. They are
aspirational brand, own manufacturing,
over, unfortunately a second wave Havells’ Covid warriors and I would
well-entrenched distribution network, a
of Covid again gripped the country thank them on your behalf.
strong supply chain and a responsive
with even higher ferocity. During this customer service setup.
Resilience tested
protracted pandemic, I wish that all
members of Havells’ family and the As business gradually gained traction Volumes and efficiency were the key
country at large stay safe and follow post lockdown, Havells was able to during these times, and I am glad to
Covid safety protocol. fulfil consumers’ demands through its share that your Company was able
vast distribution network supported by to deliver results because of the
Our response continuity in product supply through in- investments committed over the years.
house production. We provided digital While one can scamper their way in,
At Havells, we relied on agility,
solutions not just to the trade partners exploiting access to the trade network,
and a pragmatic approach to the
but also to our consumers who were success is ephemeral unless backed
unprecedented and unforeseen
able to access our service team by solid infrastructure and a value
pandemic. In the initial period, we
through multiple mediums and were system.
focussed on the safety of our employees,
provided solutions through audio and
dealers and other stakeholders. As in
video assistance. Business sustainability is the key
the past, during times of uncertainty,
the constant communication provides metric for our entry and expansion
There have been numerous examples
some relief if not the entire solution to into any new category. Sustainability
set by each function of your Company
stakeholders. We held online townhalls is not confined to Environment,
where best results have been achieved
with our workforce, dealers and Social and Governance, it is in
this year. Sales, supply chain and
vendors to assuage their anxieties each aspect of the organisation
manufacturing have surpassed
while assuring our support in such whether it is quality of the product or
their previous best by improving
difficult times. We invoked the spirit of efficient utilisation of resource in the
productivity. We are determined
togetherness, hope and humanity to be manufacturing process. For instance,
to continuously drive ‘Innovation’,
helpful to each other. we help customers build sustainable
‘Growth’ and ‘Productivity’ throughout
homes with our long-lasting, high
the organisation.
I would like to express my sincere quality switchgear and wires,
gratitude to the entire team for their which are the lifeline of any electric
04
Introduction 01-13
distribution in the house. Similarly, we consumer appliances and Havells with excessive dependence on consumption
maintain strong liquidity and prudent its offering is well positioned to cater to growth to investment growth.
Capex and Opex mix to retain the varied needs at different price ladders
nimbleness in the organisation. and applications. Consumer preferences are changing
too, moving towards reliable and
We, at Havells, over the years have Lloyd, our consumer appliances quality brands, thereby creating a
continued to take important strides in business, improved its performance, unique opportunity for organised
playing our part towards a sustainable led by ACs, washing machines and players driving premiumisation with
environment. We have been working recently launched refrigerators. It’s products which are feature led, energy
Integrated Report
steadily towards conservation a journey wherein we are constantly efficient and have a digital footprint.
and management of water resources, implementing fresh ideas including
by increasing our renewable expansion of product portfolio, ‘PHYGITAL’ is a new reality where
energy footprint. distribution network, increasing physical (offline channels) co-exist with
in-house product development and digital (online) channels. The Alternate
How we performed better consumer awareness. We channels (Online, MFR, Canteen etc.)
The external challenges, a weakened remain positive on industry growth and are expected to gain relevance over
macro-economic environment and Lloyd progression on key parameters. the years. Havells has nurtured strong
slowdown in infrastructure impacted relationships with these channels,
14-44
demand for electrical goods and After setting a strong foothold in which would reflect in additive growth
affected consumer sentiment the urban markets, Havells is now in the medium term.
especially in the first half of the year. reaching the heartland by setting up a
Covid-19 led lockdown impacted distribution network in semi-urban and
Statutory Reports
Way forward
sales in April and May across the rural markets with our focussed initiative
The challenge related to inflationary
business, yet was profound for the ‘Rural Vistaar’. The rural channel was
trends in commodity and the second
Fans and Air conditioners categories. more resilient during the pandemic and
wave of Covid-19 might affect
Despite these challenges, Havells Havells had a disproportionate growth
consumer sentiment in the short-
performed satisfactorily, registering from rural areas.
term. However, we are confident of
revenue growth of 11% at ` 10,428
Suitable adoptions have been done the medium to long-term demand
crores during FY2021. Net Profit was
` 1,040 crores, compared to ` 733 to the product range to make it more trends. With strategic building
45-141
crores earlier. EBITDA was ` 1,565 relevant and affordable to the relevant blocks in place – strengthening the
crores, up 52% from ` 1,027 crores in market. We expect Rural channel to core, broadening our portfolio and
the earlier year. Our EBITDA margins be a meaningful contributor in medium investing in people and process
remained at an all-time high of 15%. term. capability – we are looking at
improved and sustainable growth.
Havells, a Bellwether Megatrends

Electrification is a Megatrend driving Last fiscal, we gained market share
We remain proud of our lineage and
our growth creating new opportunities across categories along with increased
the quality of products we churn out.
Ubiquitous with our established brands to participate in the infrastructure distribution penetration and Rural
– Havells, Lloyd, Standard, Crabtree development and demand emanating Vistaar. We will continue to strengthen
and Reo, we are one of India’s most from semi-urban and rural markets. our credentials in product development,
penetrated household brands in the emerging consumer trends and serving
through omni-channel network. We
142-309
electrical goods industry. We are an The recent impetus to ‘AatmaNirbhar

aspirational brand ranked among the Bharat’ augurs well for integrated believe in secular growth potential of
top 5 in every product category that we manufacturers like Havells. The India and Havells.
entered during the last two decades. Government’s push towards large
Our vast product range gives us the capital outlays, uptick in the private I wish you health and safety and urge
opportunity to capture demand from capital investment cycle supported by you to follow Covid protocol.
both Consumer and Residential as well low interest rate regime too, will provide
as Industrial and Infrastructure sector. the much-needed stimulus. This will Regards,
With focus on home improvement, provide the necessary fundamental Anil Rai Gupta
consumers are investing in good quality transformation in balancing our Chairman and Managing Director
05
Product Launch
Our New
Intelli-Logic AC
Advance Android LED TV Stealth Puro Air: Air Purifier Fan Carnesia I: Smart Fan
Heat Pump Water Heater Wave Fin Digital OFR Silencio Mixer Stealth Dry Iron
Frost Free Side-by-Side Direct Cool Purodry Fully Automatic Front

Refrigerator Refrigerator Refrigerator Load Washing Machine
06
Our Direct Presence Across India
Introduction 01-13
14 25
Jammu and
Kashmir
30 36
Integrated Report
1 1 57 64
Himachal
Pradesh
Punjab 20 27
Chandigarh
40 59 Uttarakhand 3 4 2 4
Haryana Delhi 1 1 Arunachal

Pradesh
84 149 Sikkim 26 44 2 4
14-44
64 86
33 70 2 2
Uttar Pradesh Assam Nagaland
Rajasthan
1 1
Bihar Meghalaya
Statutory Reports
79 97 54 116 71 99 1 1 Manipur
24 39
2 2
Gujarat Madhya West Tripura
Jharkhand
Pradesh 30 32 Bengal
Mizoram
2 3
Chhattisgarh 38 83
Daman & Diu,
Dadra and 80 123 Odisha
Nagar Haveli
45-141
Maharashtra 29 45
Telangana
10 9 Financial Statements
47 72
Goa 50 81
Andhra
Karnataka Pradesh
3 3
77 107
Puducherry
77 73 Tamil
142-309
Nadu
Kerala
FY 2020-21
FY 2012-13 1,562
1,054
number of cities
number of cities
07
A Complete Consumer Durable Player
Numbers We are proud of our lineage and increased

footprint. What makes us unique is that we
that are the most penetrated household brand in

India with a Range of brands, and amongst the
define top three across product categories.
Havells
60+ Countries
Geographical Presence
Strong market
presence with
diversified
Resilient
and growing
distribution
product portfolio network
~14,270
Strong Dealer Network
What sets
us apart
Products
Strong
range with
Brand
39
highest quality
recall
standards
Branch Offices
14
Manufacturing
Facilities across India
At Havells India Limited, we are a

fast-moving electrical consumer
goods company and a major power
distribution equipment manufacturer
for domestic, commercial and
industrial applications. We are reputed
for having dedicated infrastructure and
manufacturing operations. We are one
of the brands with a deep and wide
presence in every nook and corner of
a consumer’s home.
08
Introduction 01-13
Nurturing high-quality brands
Integrated Report
Wide product spectrum
Switchgears Electrical Consumer Durables
14-44
Switches Domestic Industrial Fans Water Heaters
Statutory Reports
Switchgears Switchgears
Automation Appliances
& Control
Lighting & Fixtures Cable
45-141
Professional Lighting Consumer Lighting Power Cables Flexible Cables
Others Lloyd Consumer

142-309
Motors Solar Pump AC TV
Personal Grooming Water Purifier Refrigerator Washing Machines
09
Performance Highlights
Net Revenue EBIDTA & EBIDTA Margin

(` in Crores) 15.0
13.4 12.9
11.8
10,428
1,565
10.9
10,068
9,429
8,139
1,184
1,049
1,027
6,135
824
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
EBIDTA (` in Crores) EBIDTA Margin (%)
Profit Before Tax and Exceptional Items Return on Average Capital

(PBT) & PBT as % to Net Revenue Employed (ROACE) (%)*
13.5 13.7
12.3
11.4
1,432
32%
30%
29%
9.6
26%
25%
1,146
1,003
902
827
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Profit Before Tax (PBT) - (` in Crores) ROACE
PBT as % to Net Revenue
*on normalised basis
Earnings Per Share (`) and

Dividend Payout Ratio (%)
44 43 43
41* 39%**
16.61
12.59
11.71
11.21
9.55
FY17 FY18 FY19 FY20 FY21

Earnings Per Share (`)
Dividend Payout Ratio (%)
* Dividend payout for FY20 is calculated based on interim dividend paid during FY20
**Dividend payout for FY21 also includes interim dividend
10
Introduction 01-13
Current Ratio Fixed Asset Turnover
(in times) (in times)
FY17 2.04 FY17 5.11
FY18 1.47 FY18 6.58
FY19 1.51 FY19 6.85
Integrated Report
FY20 1.49 FY20 5.17
FY21 1.92 FY21 5.31
Dealer Network Product Categories

(in nos.) (in nos.)
FY17 7,800 FY17 15
FY18 10,900 FY18 20
14-44
FY19 11,700 FY19 20
FY20 12,450 FY20 20
FY21 14,270 FY21 21
Statutory Reports
Research and Development Spend CSR Spend
(in ` cr.) (in ` cr.)
FY17 49 FY17 13
FY18 58 FY18 15
FY19 79 FY19 17
FY20 102 FY20 20
45-141
FY21 96 FY21 21
Employee Strength Employee Spend Financial Statements

(in nos.) (in ` cr.)
FY17 4,974 FY17 500
FY18 5,789 FY18 650
FY19 6,536 FY19 832

FY20 5,781 FY20 900
FY21 5,727 FY21 885
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Renewable Energy Capacity Tree Plantation

(in MW) (in Lakhs)
FY17 2.3
FY18 3.3 FY18 1.0
FY19 3.9 FY19 2.0

FY20 5.6 FY20 4.5
FY21 5.6 FY21 5.0
11
Leadership for Sustainable Value

Creation and Delivery
For a business to be truly sustainable, it has to create and deliver
value on a continuous basis on various parameters and achieve
synergy. At Havells, the Company’s Board of Directors is fully
committed to STEERING the organisation in such a way that it always
Non-Independent Directors
Anil Rai Gupta Surjit Kumar Gupta Ameet Kumar Gupta Rajesh Kumar Gupta
Chairman and Non-Executive Whole-Time Director Whole-Time Director
Managing Director Non-Independent Director (Finance) and Group CFO
Siddhartha Pandit T. V. Mohandas Pai Puneet Bhatia

Whole-time Director Non-Executive Non-Executive
Non-Independent Director Non-Independent Director
12
Introduction 01-13
maintains its innovation edge and increasingly enables society to
live greener & better. The depth and diversity of Havells’ Board
ensures a very high quality of governance, rooted in ethics and
prudence, keeping the Company on the path of sustainable growth.
Integrated Report
Independent Directors
14-44
Statutory Reports
Pratima Ram Jalaj Ashwin Dani Upendra Kumar Sinha Subhash S Mundra
Independent Director Independent Director Independent Director Independent Director
45-141
B Prasada Rao Vivek Mehra Namrata Kaul Ashish Bharat Ram

142-309

(Additional) (Additional)
Notes:
1. With effect from 20th January, 2021, Smt. Namrata Kaul was appointed as an Additional Director (Independent) subject to approval of
the shareholders at the ensuing AGM of the Company on 30th June, 2021
2. With effect from 20th May, 2021, Shri Ashish Bharat Ram was appointed as an Additional Director (Independent) subject to approval of
the shareholders at the ensuing AGM of the Company on 30th June, 2021
13
Our Strategic Business Objectives

We have defined 8 strategic objectives and continue to work towards
them to penetrate deeper into our consumers’ home.
Brand Product Extension

Reinforcement and Expansion
Reinforcing essence of Comprehensive product

brand “Havells” portfolio
Focussed investment in Brand Investment in R&D for
to strengthen connect with Innovative and quality
stakeholders products
Enhancing Brand reach
through multiple channels
Proximity to In-House
Consumer Manufacturing
Strengthening connect with Leveraging technology to

dealer network optimise resources and
increase efficiency
Tap newer markets including
semi-urban and rural market Capital expenditure in
enhancing manufacturing
Tie-up with multi-brand outlets,
capacity
regional retailers and modern
formats Better control over supply chain
14
Introduction 01-13
Integrated Report
Financial Digitisation
Management
14-44
Maintain lean balance sheet Digital transformation by
accommodating growth and leveraging IT infrastructure
Statutory Reports
acquisitions for improving overall product
experience
Cost rationalisation and Net
cash positive Harnessing digital technologies
in all aspects of business to
create value
00-00
Strengthening Sustainable
Lloyd Business Business Our Outlook
on Industry
Segment wise outlook on
industry has been covered
00-000
To establish it as a “Mass Invest and nurture in building in detail in Management

Premium Segment” brand business for tomorrow Discussion and Analysis
Leverage own production Ensure our operations and section of this report.
capacities to strengthen products do not negatively
offerings impact the environment
Expanding product portfolio
15
Risk Management Framework

At Havells, our strong governance and
business structure, with stakeholder
interest at the core, makes us cognizant
of the risk that our business faces.
Company has well established Enterprise

risk Management framework to ensure
achievement of its strategic objectives.
Internationally accepted framework,
issued by the Committee of Sponsoring
Organisations of the treadway Commission
(COSO), is considered as a self-benchmarking
for Company’s Enterprise Risk Management
framework.
Our integrated risk management framework provides an enterprise-wide view i.e., from entity to operational level with a top-
down and bottom-up approach, focussing on leveraging next-generation technology, informed decision-making process and
culture of no surprise.
Our objectives towards ERM is to minimise adverse impacts and to leverage market opportunities effectively and efficiently,
which helps to sustain and enhance short & long-term competitive advantage to the Company.
The Risk Management coordinator works with all the business and functional teams on a regular basis for performance
monitoring of the execution plan and identification of the emerging risks. An update on enterprise risk management is
presented to the ERM Council and Leadership Council on a periodical interval, and is subsequently presented to the ERM
Committee of the Board of Directors.
Entity Business Division Functional Process Operational

Level Level Level Level Level Level
Board of
Directors
Strategic Risk
Enterprise Reputational
Risk Risk
Management Likelihood,
Compliance Performance
Committee Identification Consequence,
Risk Action Plan & Monitoring,
of challenges / Cost Benefit
Scheduling Communicating
opportunities Operational Analysis &
and Reporting
Leadership Risk priortisation
Council
Financial Risk
Reporting Risk
ERM
Council
Brainstorming & Assessment Monitoring &
Categorisation Risk Response
Risk Identification to Rating Reporting
16
Introduction 01-13
Risk Assessment Matrix
Likelihood Possible Velocity Overall Rating
Risk Category Key Identified Risks
(A) Impact (B) (C) (A*B)+C
Risk of business disruption due to
Black swan events
Strategic
Risk of geographical and channel
concentration
Risk of timely leveraging technology to
Integrated Report
meet customer expectation and risk of
technical obsolescence
Third-party dependence for
critical technology
Cyber threats and risk of
Information Security
Risk to brand positioning
Reputational Risk due to digitalisation
and social media
14-44
Risk of supply disruption and
Financial inventory obsolescence
Risk relating to commodity and
Statutory Reports
currency fluctuation
Intellectual property infringement
and counterfeit products
Compliance
Non-compliance risk - statutory
and other provisions
Risk relating to Environment,
Operational Social & Governance (ESG)
Risk of import dependency
Risk of employee attrition
00-00
Risk on Brand reputation on
account of customer service
Risk relating to quality assurance
Likely Less Likely Very Rapid Rapid Slow High Medium
Key Risks and Their Minimisation/Optimisation Plan

We have mapped our risk and mitigation actions to respective capitals. Summarised action taken status with
respect to top identified risks are given below:
Geographical & Channel Concentration Risk Response

Risk for having Geographical and Channel Over the last few years, the Company has adopted a focussed

00-000
Concentration w.r.t key Product Categories, approach towards expanding its reach in Tier II, III and rural markets
Customers and Geography under the Rural Vistaar initiatives.
Hitherto, we have achieved 2,500 Rural Distributors covering

27,000 outlets.
We created a separate team to focus on MFR/RR, CPC/CSD and

E-Commerce and adopted DMDC (Different models for different
channels) to avoid conflict with existing channels.
17
Technological Obsolescence Risk Response

Risk of timely leveraging technology to The Company has taken multiple initiatives to address the challenges
meet customer expectation and risk of on account of technological obsolescence and to meet customer
technical obsolescence expectation like:
Introduced BLDC (Brushless DC) fans
Launch of Silencio - Quietest Juicer Mixer Grinder (50% reduced
perceptible noise)
Advanced Engineering Plastic developed for Reo Elegant switches
High recovery / Flow point-of-use Water purification system (55%
water recovery)
Brand Positioning and Impact of Risk Response

digitalisation and social media
Risk to Brand Positioning and Impact of The Company keeps track of Brand Perception and continuously

Digitalisation and Social Media conducts brand audit and monitors brand health parameters
The Company has implemented online reputation management

(ORM) system and a state-of-the-art integrated digital command
centre where feedback, post and complaints are monitored and
responded on a real-time basis
Compliance Risk Risk Response

Legal and Statutory provisions The Company has zero tolerance policy against non-compliance

Mapping of applicable compliances through Control Manager

Advance alert to concerned stakeholders

Periodical compliance status along with exception (if any) reported to

Senior Management, Audit Committee and Board of Directors
Protection of Intellectual Property Rights Risk Response

Intellectual property infringement and There is a defined mechanism to protect our intellectual properties like
counterfeit products trademarks, logos, patents, and aesthetics of products by registering
under relevant acts.
To protect our brands, we are taking appropriate action by initiating
civil & criminal actions both domestically and globally
Procurement Management Risk Response

Risk relating to fluctuation in Commodity The purchase of major commodities, such as Copper, Aluminium,
prices, Currency and Import dependency Steel, and Engineering Plastics is based on the average price model,
linked to the London Metal Exchange (LME) or related indices
The average price is further benchmarked against current market
prices (domestic/global) periodically
Alternate sourcing avenues are identified for critical parts and raw
materials for appropriate de-risking
Accelerated localisation plan is initiated to reduce import dependency
18
Customer Service and Spare Management Risk Response
Introduction 01-13
Risk on Brand reputation on There is established mechanism to address customer complaints on
account of customer service priority

Monitoring customer loyalty cum satisfaction index through NPS
methodology
Use of Automation and enhanced technology for better customer
experience
Service personnel are given online and offline trainings on technical
aspects and soft skills to improve service quality
Supply Disruption Risk Response

Risk of Supply Disruption and Inventory • Prepared a disruption calendar of foreseen and unforeseen events
Integrated Report
obsolescence – Business continuity and an action plan is prepared to reduce impact of disruption
• Response and mitigating actions codified into SOPs for advance
preparedness and quick response
• Integrated, synchronised and visible supply chain for quick response
to disruptions
Quality Assurance Risk Response

Product life cycle management, Established Integrated Quality Risk Assessment framework:
14-44
Manufacturing process maturity, Supplier • Application-based product validation
quality and product performance • Transportation torture test
Manufacturing process strengthening through:
Statutory Reports
• Built-in-Quality (BiQ)
• CTQ workstations
Direct-on-Line (DOL) for components supplier, Critical part management
Information and Cyber Security Risk Response

Data Protection, End-point Security, network Well-defined cyber security architecture is in place
and application security, business continuity, Next-generation (including AIML based) security solutions are used
disaster management and IT security to protect cyber threats. For e.g.:
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governance • Advance email phishing and threat protection
• Next-gen antivirus with behavioural analytics
• Endpoint detect and response (EDR) to protect from “zero day” Financial Statements
attack
• Data encryption
• Use of VPN and VDI for ‘WFH’
• Implementation of Privilege Identity Management
• Implementation of Multi Factor Authentication (MFA) for critical
apps (Email, Microsoft Teams, OneDrive)
Appropriate focus is given on BCDR (Business Continuity & Disaster
Recovery)
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Environmental, Social & Risk Response

Governance (ESG)
Risk relating to Environment, Health & Safety • All our manufacturing plants are ISO 45001/OHSAS18001 certified
• Global Benchmarking is done w.r.t. Environment, Health & Safety
• As part of CSR initiatives, 11.5 lakh trees have been planted
• IGBC Gold Certificate awarded to Alwar plant for the Green Factory
Building
19
Our Business Model

Our business model is based on our vision to provide superior
electrical and consumer durable products delivered by skilled people.
Customer-centricity continues to remain the core of our business. The
operations are within the boundary created by our core values which
guide and enable us to leverage our pillars of growth in creating
sustained value.
Customer Delight
Inputs (FY 2020-21)
Financial Capital
Equity ` 5,164 crores In-House Manufacturing
Cash (net of debt) ` 1,438 crores
Capital expenditure ` 219 crores
Manufactured Capital
Manufacturing plants 14
Warehousing space in Sq. ft. 2.5 million sq ft Patents and
(incl. temporary Designs
storage during
season) Product
Gross Block Value ` 2,739 crores Management
Intellectual Capital
Total R&D spend ` 96 crores
1. Capital expenditure ` 5 crores
Leadership by Example
2. Operating expenditure ` 91 crores

No. of R&D Centres 10
Procurement
Product Portfolio
R&D team strength 382

and Supply
Human Capital
Chain
Total permanent employee count 5,727
Total no. of training hours to
Customer
permanent employees 25,500+
No. of New Hires 911
Social & Relationship Capital

No. of Dealers ~14,270
No. of Retailers ~1.80 lakhs
Manufacturing
No. of Electricians ~1.50 lakhs
Suppliers base 1,965
No. of MSMEs having business 414 Distribution
relationships
Channels
% of procurement spent on
domestic suppliers 76%
CSR spend ` 21 crores
Natural Capital
Energy consumed 191674 MWh Support Function
Solar plants capacity 5.6 MW
Renewable energy consumed Distribution Network
out of total electricity 8.5%
Tree plantation Integrity and Transparency
Recycling of Water
E-waste disposal
20
Introduction 01-13
The six capitals feed the desired
inputs to the business model,
to generate output and create
outcomes too; which is the
essential Value creation.
Integrated Report
Outputs Outcomes
Outcomes
Financial Capital
Key Products
Turnover ` 10,428 crores
EBIDTA ` 1,565 crores
PAT ` 1,040 crores
Dividend payout ratio 39%
Contribution to exchequer ` 2,438 crores
Switchgear
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No. of product categories 21
After Sales
service
Statutory Reports
Cable
Number of new SKUs launched 4,766
No. of patents and designs filed 123
Pursuit of Excellence
Brand Reinforcement
Human Capital
Permanent Employees trained 2,682
Lighting & Fixtures No. of occupational fatalities Zero
Sales and
Marketing
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Social & Relationship Capital
Distribution of sanitary pads 66,000+
to school girls
Electrical Consumer
Total no. of suppliers accessed 256
Retailer on sustainability aspects
Durables
Net promoter score 64%
Natural Capital
CO2 emission intensity 47% w.r.t
Air Conditioners reduction baseline
FY 2015-16
00-000
Green energy generated 6577.8 MWh

% Total waste recycled 94%
Number of saplings planted 5 Lakhs+
Water recycled 0.059 Mn
Cubic Meter
TVs Achievement in e-waste
disposal against target 105%
21
Financial Capital
Financial Capital strength is an important foundation for building a sustainable and
long-lasting organisation. At Havells, we have always focussed on continuously
building a strong financial capital framework while utilising the financial resources
prudently and ensuring availability of capital for funding growth over the years.
Last financial year was a unique year which required both abundant caution for
initial few months given the unprecedented challenges posed by the pandemic
onset and then a full throttle business acceleration and growth opportunity for the
rest of the year. Accordingly, Havells adopted a very nimble-footed approach to
the situation with several key initiatives:
We emphasise on building
a strong financial capital Financial
framework, even as we Capital
make use of our financial Social &
resources prudently. During Relationship
Capital Manufactured
the year under review, the Company has consistently Capital
challenges in the backdrop contributed towards Capital expenditure
the welfare of the community
of the Covid-19 outbreak owing to its philosophy of
` 219 crores
‘Shubh Labh’
were followed by a full
throttle acceleration in Interlinkage
business and opportunities among Capitals
for growth for the remaining
part of the year. Natural Capital Intellectual
Total environmental Capital
expenditure R&D spend
` 2 crores ` 96 crores
Human Capital
Employee spend
` 885 crores
22
Introduction 01-13
Net Worth
(` in Crores)
5,164
4,305
4,192
3,739
Integrated Report
3,274
FY17 FY18 FY19 FY20 FY21
14-44
Ensuring adequate liquidity: person activities only, can progress capital maintained throughout the
A comfortable cash position was remotely - with significant productivity year to support growth. Cash & Bank
Statutory Reports
created not only with bank borrowing benefits resulting in lesser travel balance and Current Investments of
but also by organisation-wide sharp & administration costs. Interesting ` 1,931 crores as at the end of the year
focus on reducing non-essential concepts such as ‘E-travel’, digital reflect robust liquidity.
spends. launches and channel meets etc.
were adopted to maintain continuity
Supporting stakeholders: of connect with trade partners and
`1,040 CR.
business development.
Havells’ prudent financial management
ensured timely payment to all
Automation:
stakeholders like the employees,
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vendors and need-based credit During the year, Company has
support to the customers. also implemented various Robotic
Net Profit
Process Automation software (RPA)
CFTs formation to drive specific for performing some of its rule-based
`1,931 CR.
& well-defined outcomes: office tasks in the finance and accounts
Various Cross functional teams (CFTs) function with an intent to reduce cycle
were formed early on in last financial year time and drive efficiencies further.
with specific focussed objectives related
to many key areas including bringing Capex:
Cash and Bank Balance &
cost efficiency across the organisation. In order to preserve precious liquidity
Current Investments
This format ensured a wider cross all non-critical Capital Expenditure for
functional participation and quick the year were truncated, however, all
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` 219 CR.
decision-making. These CFT also came essential and critical expansion plans
up with various ‘new ways of workings’ were fully supported. Net Capital
with dual objective of improving ease of expenditure for the year was Rs. 219
doing business within the organisation crores.
and bringing overall efficiency.
Strong Balance Sheet: Net Capital Expenditure
Digital adoption: Net worth at the year-end is Rs. 5,164
COVID made us realise that various crores, an increase of Rs. 860 crores
activities hitherto thought of as in- during the year. Healthy working
23
Substantial investments in purchase, development and maintenance of plant
and equipment have given us the capacity to generate long-term returns. We
deliver value by promoting technological innovation at our plants, and through
their performance and development of capacity.
Daily temperature scanning of workers at the time of entry while maintaining

social distance
We aim to utilise our

Financial Capital
manufacturing resources Capital expenditure
efficiently. During the year, ` 219 crores
our single-minded aim was
to improve our management Social &
Relationship Capital
practices and to nurture 1,348 number of
Manufactured
our people skills at the Health and Safety Capital
trainings
manufacturing plants. We
are taking several initiatives
at our facilities, which have
Interlinkage
helped develop a strong base among Capitals
for establishing cost-effective Intellectual
Natural Capital
options. 47% reduction in CO2 Capital
emission intensity with Patents and Designs
regard to baseline filed 133
FY 2015-16
Human Capital
3,034 trainings for
skills upgradation
24
Our Manufacturing Facilities
Introduction 01-13
1. Cable Plant, Alwar, Rajasthan concepts, the plant aims to reduce has also been awarded as the ‘Best
The plant in Alwar, which is now its environmental impact through Employer by Employers’ Association
completing 25 years, is India’s largest green concepts and techniques. of Rajasthan (EAR) for its excellent
integrated plant for manufacturing It has installed the 4th generation business practices and people
cables and wires. The new site of Wires energy-efficient Maillefer Extruder with empowerment. The new state-of-the-art
plant has been certified as IGBC Gold- proven European technology, which Buss Kneader plant delivers diversified
rated Green Building. Constructed on guarantees excellent centricity and process engineering applications with
sustainable architecture and design highly stable product with homogeneity high quality PVC compounds.
at the speed of 1200m/min.This plant
2. Water Heater Plant,

Neemrana, Rajasthan Alwar, Rajasthan
Integrated Report
This most modern manufacturing Neemrana, Rajasthan
set-up of Water Heaters in India
has been integrated with saving on
manpower and space, bringing it on
par with global standards and making
Baddi,
it capable of shifting to Industry 4.0. Himachal Pradesh Haridwar,
It is most compatible to have artificial Uttarakhand
intelligence and its modernised and
Ghiloth, Sahibabad, UP
integrated enamel coating section
Rajasthan
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contains advance castings and has
the capability of running 24/7. The MiG
welding machines are energy-efficient
with latest inverter-based technology
Statutory Reports
and pulse mode, while the projection
welding machines are also aligned with
the latest technology.
3. Power Capacitor
Manufacturing Plant,
Sahibabad, Uttar Pradesh
This is India’s first automated magnetic
contactor assembly line with a capacity
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Faridabad, Haryana
to manufacture 1.5 million contactors
per annum. The plant is equipped
with state-of-the-art fully automatic
testing machines and enables real-
time basis data capturing and sharing

through cloud. In the previous year,
the plant had entered into a technical
collaboration with Hyundai Korea for
magnetic contactors and MCCBs to
manufacture world-class products.
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Buss Kneader plant
25
Attaining operational excellence saving and special processes. As a

part of digitisation, efforts were taken
The manufacturing plants conducted
a special drive to inculcate operational on improving efficiency, reducing skill Our four-
excellence during the year, termed
as WoW (Ways of Working), with a
dependency and implementing MES.
pillared
time bound target-oriented approach. approach
Based on a four-pillared approach, a
sub-taskforce was created for each
plant which trained employees to
follow a standardised approach. The
45-50% Improving plant and
machinery equipment
efficiency through
Measure of performance in OEE Drive
journey will help in optimum utilisation
of machines and equipment. The plants prior to OEE*
Learning from each
drive enabled plants to measure their
70%
other in developing best
current efficiency levels. It also worked
practices across the
on making the plant operations more
plants
effective and eliminating the losses.
Through MOST techniques, plants Measurement of performance Improving manpower

measured manpower utilisation and post-OEE* efficiency of operators
productivity. By way of knowledge through MOST
sharing, the plants worked on horizontal
deployment of techniques like energy *OEE - Overall Equipment Effectiveness Digitisation
Cost optimisation
Key elements of cost Havells undertook cost optimisation at

all its manufacturing facilities. Based
optimisation on suggestions from the nominated

team, the manufacturing facilities
revalidated operational and manpower
Improving plant efficiency and productivity efficiency and aimed at improving
localisation to reduce dependency on
Implementing value engineering in products and imports. We fully achieved the cost-
processes optimisation measures planned for the
year under review.
Reducing cost of procurement through alternate
sourcing, localisation and negotiation
26
Managing Covid-19 at the 3. Driving productivity at a distance: We continued to effectively manage the
Introduction 01-13
manufacturing plants plant’s performance, while physical distancing and remote working policies
As the COVID-19 induced lockdown remained in place.
ended in May, an urgent priority was
to keep the factory workers safe. 4. Developing skilled manpower: Due to the pandemic situation, public
Providing a secure manufacturing transportation was affected and there was a severe shortage of migrant labour.
environment and giving employees Plant leaders developed teams, trained and nurtured them according to the
the confidence to return to work was industrial culture and brought them to the desired skill level.
crucial. While we maintained hygiene
and physical distancing, we formulated
SOPs to establish operational
procedures / protocols for resuming
work at the manufacturing units once
the lockdown was lifted.
Integrated Report
All SOPs aimed at preventing and
controlling the spread of Covid-19 were
adhered to at all the manufacturing
facilities to make the employees,
apprentices, contract workers and
stakeholders feel safe and secure. We
used Artificial intelligence to monitor
social distancing in some plants. We
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also used camera feeds of employees
at work, which once uploaded onto
the cloud, issued an alert to the Safety
Officer, in case a worker broke social
Statutory Reports
distancing guidelines.
We focussed on four key areas to help

Plant Leaders navigate the transition
from initial crisis response to the
“next normal”:
1. Protecting the workforce: We

formalised and standardised Key learnings
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operating procedures, processes
and tools to keep workforce safe. We
built workforce confidence through Paperless working Mistake proofing of critical
effective, two-way communication operations to minimise
and addressed their concerns

through flexible adaptation.
dependency on human factor
2. Managing risks to ensure

Regular health Use of Artificial
business continuity: We
anticipated potential changes and monitoring Intelligence
modelled the way a plant should
react ahead of fluctuations to Use of IT in organising virtual Effective use of
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enable rapid, fact-based actions.

meetings and interactions mobile apps
27
The cumulative value of Intellectual Capital that Havells has refined over the years
drives our evolving business strategy. Our Intellectual Capital includes our industry
insight, competitive intelligence, understanding of markets and customers, logistics
management and our human assets. Building on to the other five capitals, this
capital enables us to remain sustainable and serve the customers with better
quality and innovative products.
At Havells, Intellectual Capital is manifested in the knowledge base we have created over the years. It is one of the core
pillars of our Enterprise Risk Management (ERM) strategy.
We use technology as an enabler and collaborate with our customers, vendors, academia and employees to enrich this
capital. We democratise the technology by making it easily amenable to our consumers through enriched product designs
and features.
Strengthening our 1. By consistently innovating and 2. By blocking competition from copying our ideas.
competitive market improving our products, services We do this by protecting our intellectual property
positioning through and manufacturing processes. primarily through patent filings and design
Intellectual Capital registrations.
Readying digital
transformation of our
Financial Capital
operations and processes R&D spend
to cater to the emerging ` 96 crores
needs of our business and
Social & Manufactured
the disruptive nature of Relationship Capital Capital
technology has been a 96% of our orders Strengthening this capital
by our innovative efforts
key focus area for us. We are made through the
leading to high quality
Dealer Portal
aim to create and deliver products
sustainable products - from Interlinkage
usage to safe disposal.
among Capitals
Natural Capital
Reduction in carbon
footprint of products Intellectual
and operations through
the use of latest and Capital
efficient technology
Human Capital
R&D strength
382 employees
28
Introduction 01-13
4,766 686
New Stock Keeping Units (SKUs) Total number of patents and designs
launched
Integrated Report
Innovate for Customer Delight innovative design solutions to the
Our foray into digital platforms and our market.
119
emerging digital customer experience
In order to provide a seamless, easy-
journey is another keystone of our
to-use and superior experience to our
intellectual capital.
consumers, UX design specialists
The Customer Experience & Design in CRI-CXD developed the Havells
Sync app. This was done through the New designs filed in FY 2020-21
Centre set up at our head office in
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Noida is a state-of-the-art design and process of design thinking and by
14
consumer experience studio which utilising in-depth research tools and
spearheads consumer-centricity and customer insight driven methodologies.
design thinking. It captures the unmet, The App caters to all of Havells brands
Statutory Reports
unarticulated and latent needs of the for service, IoT products and e-store
consumers to deliver sector-leading from a single touchpoint. New patents filed in FY 2020-21
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CUSTOMER EXPERIENCE & DESIGN

00-000
29
Awards
received
Two Red Dot Awards Four CII Excellence Design Seven India Design Mark
Awards Awards
30%
Innovative Applications of energy and material consumption,
Materials in line with meeting the goals of
Materials technology is a cornerstone sustainable product development.
for all our innovations and we are We catapulted the REO Elegant
continuously investing in building new range of electrical switches using Energy savings from range of
competencies and infrastructure for advanced engineered plastics. These electrical switches of Reo Elegant
this technology. We pioneered the products are light weight, easy-to-
launch of anti-bacterial anti-fungal process and are recyclable and are
Switches and Sockets in the Electrical environmentally safe.
Wiring and Accessories (EWA)
segment, augmenting the existing
Crabtree range. The nano-sized metal
oxide-based technology provides
“Safe Touch” against transmission
of harmful microbes, including fungi
that causes healthcare associated
infections, with 99.99% efficacy. The
inorganic nanoparticle produces
reacting oxygen species (ROS) that
damages the DNA, cell membranes
and other vital components of
the microbes.
We have launched several new

initiatives to explore the use of different
engineered materials to optimise
30
Introduction 01-13
Alternate to Copper in Electrical Industry
With the growing demand of copper and its availability to meet the growing industry demand, there is a need to work
on alternative and sustainable conductive materials at par with copper in performance. These materials need to have
a smaller energy footprint, should be capable of operating in a harsh environment (corrosion resistant) and need to be
environmentally safe.
Integrated Report
“Soch” “Quality Circle” “Technology”
Customers and Vendors Grassroot Employees for Growth
With an objective to encouraging Through this initiative, we Internet of Things, Cloud
the spirit of innovation, we created encourage cross-functional Computing, Artificial Intelligence
a dedicated platform “Soch” teams from the shop floor to and Machine Learning, digital
to invite suggestions from our come together and recommend transformation, immersive realities
14-44
stakeholders on innovation. The improvements in products. and green technologies are major
platform is fast gaining popularity areas of technological investment.
with an increasing number of
responses.
Statutory Reports
00-00
00-000
31
Human Capital
Human Capital refers to the strength of our employees including their health and
well-being, expertise, experience, innovative capacity and attitude. We strive to
cultivate and harness the power of our employees’ passion and commitment, and
differentiate ourselves through our people-centric approach to the business. Our
focus in FY2021 has been to continue to transform our culture, making Havells a
‘Great Place to Work’ with people and skills to grow the business.
The year under review had indeed been a challenging one as the world witnessed the first-of-its-kind black swan event with
the outbreak of the Covid-19 pandemic. However, the Havells family displayed great resilience, agility and entrepreneurial
zeal in serving its customers during the tough environment.
Outreach by CMD
The year changed the world and employees and ensured their well- their own health and well-being
the way we operate, bringing in new being to the best of our abilities. We and the future of their families, our
challenges, outlook and opportunities. remain committed to promote a culture CMD Shri Anil Rai Gupta utilised the
However, one thing that remained of togetherness and team spirit, opportunity to address the employees.
constant was our commitment and along with a professional working He engaged into regular online
compassion towards our employees environment, to reward the inhouse discussions with employees and tried
and their well-being. At a time when talent. to constantly motivate them to stay
several organisations, per force, positive, committed and focussed to
took drastic measures to remain cost During the Covid-induced lockdown, best serve the customer.
competitive, we fully supported our as employees were concerned about
Financial
During the challenging Capital
times of Covid-19 Employee spend
pandemic, we provided ` 885 crores
complete support to our

employees and ensured Social & Manufactured
Relationship Capital Capital
their well-being. Besides 64% Net Promoter 1,548 employees
focussing on continuing Score for customer involved in
satisfaction manufacturing
a professional working process
environment, we focussed
on promoting a culture of
Interlinkage
togetherness and among Capitals
team spirit.
Natural Capital Intellectual
Tree plantation at Capital
manufacturing facilities Conducted 386 virtual
on employees birthday training sessions across
organisation
Human
Capital
32
Introduction 01-13
Integrated Report
14-44
Statutory Reports
38 years 13.67%
Young Workforce
The average age of our 5,727
00-00
permanent workforce is 38 years.
India being a young country, we wish
to provide opportunities to youngsters. Average age of permanent Ratio of women employees in
The average age of the 911 new workforce the CRI division Financial Statements
joinees in the organisation is 29 years.
29 years 6.4%
We maintain a keen focus on talent
deployment at our Centre of Research
& Innovation (CRI) division. We
recruited 373 engineers in this division
with an average age of 34 years. This
was much lower than the average Average age of new hires Ratio of apprentice hired – Out of
age of the entire organisation. To total hiring
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ensure better diversity, 13.67% women
34 years
employees were added in CRI, which
is higher than the overall organisational
percentage of 4.32%. We are also
committed towards developing the
skills of our freshers. We hired 369
Average age in the CRI division
apprentices during the year, which is
6.4% of the total hiring and way higher
than the statutory limits.
33
Initiated “Buddy Program” for new employees

in lower and middle level management for
smooth induction and imparting them a better
understanding about Company's value, ethics
and culture
Buddy Program
Talent Development,
Engagement & Retention
Amidst the changing scenario, we
115
leveraged the opportunity to connect
participants from Sales
with all our stakeholders through
the digital medium for upskilling
and learning within the group and
even outside. We conducted around
300 training sessions during the
year, which was attended by 4,418 Internal Job Posting (IJP)
employees on MS Teams, including
trade partners and end-users.
These sessions included training on
250
functional / behavioural and technical
topics, in close coordination with
our in-house experts from Business,
CRI, Functions and Plants. This also
included knowledge-sharing sessions
jobs posted
on new technologies such as IoT and
other advanced digital technologies.
Key findings of GPTW Survey
81 88 83 84 82 80 78 84 90 87 83 84
76 75 73
HIL 2020 HIL 2021 Best Companies to Work for in Manufacturing & Production (>500 employees)
34
Providing Equal We reassured the employees that Engaging with employees
Introduction 01-13
Opportunities their safety is paramount to us and • Havells Music Studio
Havells is an equal opportunity the organisation will do everything
• Lockdown Engagement Video
employer. The employees within the possible to safeguard their health and
organisation are evaluated solely wellness. We were among the initial few
Increased digitalisation
on the basis of their qualification organisations in India that announced
reimbursement of the cost of Covid-19 To further emphasise and achieve our
and performance. We provide objective of online working, we moved
equal opportunities in all aspects of vaccination for all direct and indirect
employees. a step ahead through digitalisation of
employment, including retirement, our recruitment process and launch of
training, work conditions, and career an in-house e-recruitment solution by
Work from Home
progression, among others. This way of a portal.
reinforces our commitment that Our factories resumed operations with
equal employment opportunities strong compliance on hygiene and
is a key element of our growth and social distancing, along with other
Integrated Report
competitiveness. Further, Havells regulatory requirements. With social
is also committed to maintaining a distancing becoming the new normal,
workplace where each employee’s we introduced Work from Home
privacy and personal dignity is (WFH) facility for our employees and
respected and protected. encouraged them to attend office
only as per the roster. Flexi-timings
Great Place To Work (GPTW) as well as age and proximity-related
Despite the challenges of the pandemic, relaxations were provided to enable
Havells participated in the ‘Great Place employees balance home and work
14-44
to Work Assessment’ during the year. It responsibilities suitably.
was certified as a ‘Great Place to Work’
Proactive measures for employees
for the second year in succession. The
during pandemic
Statutory Reports
organisation has also been recognised
among ‘India’s Best Workplaces in • Workplace SOP and guidelines for
Manufacturing 2021’ – Top 30. Covid-19
• Dedicated Covid-19 helpline for
Out of 110 organisations in the information sharing and support
manufacturing sector participating in
the assessment, top 30 organisations • Constant communication on
preparedness and safety procedures
were identified which excelled not only
in people practices, but also in gaining • Health support and guidelines
Processes
handled
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feedback from their employees and
creating a culture of high trust. This • Suggestive measures at home
recognition showcases the solidarity • Awareness sessions at different by the
and resilience of the Havells family, locations involving local authorities
Recruitment
particularly in the current scenario
where the ways of interaction and
working is fast changing. This also
Samvaad
During the lockdown, an initiative called
Portal
reflects the pride and passion of our
Samvaad was started with the help of
teams to achieve greater heights. We Shortlisting > Offer release
health and wellness professionals in
have been rated higher vis-à-vis the
order to bring different perspectives
industry on most of the parameters.
on life: Health, Happiness, Karma, Interviewing > Digital
Work-life balance for employees and
Employee Welfare During acceptance of e-appointment
00-000
their families. A series of interactive

Covid; New Way of Working; letter
virtual sessions helped our employees
Digitisation
stay focussed and motivated during
To deal with the COVID outbreak, the unprecedented times and also
we adopted a holistic approach work on their mental health and
Approvals > On-boarding
to spread awareness amongst our well-being.
employees through various platforms.
35
Social and Relationship Capital

Our business largely depends on our ability to create and sustain long-term and
strong relationships with our customers, employees and the wider community.
Through our approach, we find newer ways to engage with our customers
and consumers, interact with stakeholder groups, support the growth of our
communities, thus generating a positive impact on the society. This forms a part
of our commitment to build and fair and more inclusive society.
At Havell’s India, one of our major key attributes of the larger sustainability domain is “thriving with the communities”. This
single-minded focus became even more critical in 2020, as the entire world, including all the communities around us, were
engulfed in the wave of the outbreak of the Covid-19 pandemic. We faced the challenging and tough times with great
resilience and zeal. A few of the key initiatives we undertook during those times have been featured further in the report.
As we pledge our hands towards serving the society, our Stakeholders are a part of our larger family, and their health & safety
is our key concern. The pandemic had a profound impact on our corporate social responsibility (CSR) initiatives. Facing the
challenges and overcoming them even during adverse times showcases our commitment towards delivering our corporate
social responsibilities in the most effective manner.
Our endeavour is to
have a more profound Financial
impact on the world Capital
Growing responsibly
around us and go through our various
beyond our business CSR initiatives
Natural Capital Manufactured
focus to contribute to ~5,000 benches made Capital
the well-being of all the of waste recycled wood
200 vendors participated
from cable drums donated
in virtual training
stakeholders, including to govt. schools at Alwar,
sessions for capability
Rajasthan
the community at large. enhancement
Being a responsible Interlinkage

corporate citizen, we among Capitals
have taken several
initiatives in the areas of Social &
Intellectual
Capital
education, health and Relationship 380+ total employee
sanitation. Capital strength in R&D
activities
Human Capital
100% of new
vendors assessed for
sustainability
practices
36
Introduction 01-13
~3.5 Lakh
Resilient Social Initiatives
Mid-day Meals
One of our largest flagship CSR migrant labourers in need of food and
Meals distributed to the needy
initiatives is the “Mid- day meal”, which nutrition during the pandemic. More
FY 2020-21
serves around 60,000 students in 693 than 3.5 lakh meals were distributed
60,000
schools in Alwar district, Rajasthan, in FY 2020-21. Till date more than 90
on a daily basis. This was further million meals have been distributed
enhanced to support people and through this initiative.
Integrated Report
Students served daily meals in 693
schools in Alwar (till date)
Water, Health and Sanitation

Through our WASH (Water, Health and
Sanitation) initiative, we contribute
of children and their families in the
areas of our intervention. Our key
128
14-44
to the United Nations’ Sustainable programmes include development Biotoilets constructed in FY 2021
Development Goals and Swachh and maintenance of bio-toilets in
Bharat Mission advocated by the government schools in the district of
Government of India. The initiative Alwar and the distribution of reusable
60,000
Statutory Reports
has gained immense significance sanitary napkins to the girls.
in ensuring the overall development
Sanitary Napkins distributed

to young girls in view of better
hygiene and sanitation
00-00
Imparting quality education
We have partnered with Ashoka
University, one of the most prestigious
institutions in India, to develop and
Environment protection
Foreseeing a vision of better and
greener tomorrow, we planted 5 lakh
tree saplings during the year, of these,
5 Lakh Financial Statements
Saplings planted in FY 2021

support education infrastructure 4 lakh saplings were planted at Bhopal,
for higher education. Focussing on Madhya Pradesh, while the remaining
our plan to strengthen the school 1 lakh were planted in Neemrana,
11Lakh+
infrastructure, we have donated Rajasthan.
over 2,500 education sets benefiting
students in government schools in
Alwar, Neemrana and Haridwar. These
education sets are created out of waste Trees planted in last 3 years
00-000
recycled wood pallets in plants.
37
Supply Chain
At Havells, we have adopted a We believe one of the key drivers With an ever-increasing define VUCA
progressive approach towards enabling for our sustainable supply chain is (Volatility, Uncertainty, Complexity
a sustainable supply chain. Our aim transparency and visibility. Warehouse and Ambiguity) world, we work
is to create and cascade sustainable and transport management system, on risk mitigation plans with our
practices that flow smoothly throughout digitisation and automation of tasks, strategic partners and maintain strong
the supply chain or supply network. shipment tracker systems like EPOD, partner connect to avoid any supply
Our Supply Chain approach involves DPOD and API with service providers, disruptions. We enable this through
integration of regulatory compliances, e-bidding and e-indenting, availability flexible and strong networks, plug
financial viability, environmental and of dashboards and inventory visibility and play supply chain, converting
internal business drivers to complete are some key initiatives that help build learnings into SOPs through disruption
supply chain practices. These practices transparency and visibility into our calendar, smart inventory build-ups
include product design development, supply chain. We believe in medium to and the iterative planning process.
procurement, manufacturing, packaging, long-term infrastructure development
warehousing and transportation, that is ahead of the curve in meeting
distribution, return and disposal. the sustainable growth plans of
the organisation.
Supply Chain
The pandemic has led the organisation to prioritise its supply chain resilience significantly in order to adapt to the new
normal. In order to react and adapt quickly to potential disruption, we made our supply chain more flexible and agile by
enhancing our efforts in development of domestic sources and de-risking dependencies on overseas suppliers.
In the environment of new normal, survival is possible only with implementation of digital technologies. Hence, we moved
from traditional to virtual mode and focussed on new capabilities of procurement. Technology played a much bigger role in
implementation of our solutions as we faced the key challenges of handling risks, building collaborative resilience, financial
crisis and technological upgradation. Our focus changed from being only cost effective to becoming economically and
technically sustainable.
Increased competition in the global market drew attention towards the necessity for technology adoption and for an efficient
supply chain innovative network. We maintained our focus on integrating, strategising, and planning to reassess and
developing new platforms across functions. This further helped us effectively utilise our advanced digital platforms.
Challenges in Supply Chain
Difficulty in monitoring Delayed Shipments/

of end-to-end Longer lead time
supply chain
Difficulty in manpower Shortage of cash flow
scaling up/down
Planning Sourcing Logistics
Finance
Difficulty in material Difficulty of material
planning due to availability due
high fluctuations in to shipment held
demand Shortage of parts/ across ports/borders Difficulty in
material controlling costs
38
As part of the “Samanvay” Vendor
Introduction 01-13
Meet, the Chairman and Directors
shared Havell’s vision, its future growth
and integrity practices with around
150 suppliers.
During the period of Covid-19 related

lockdown, we kept our suppliers
engaged through virtual meetings
in order to increase their awareness
on quality practices, environment
regulations and safety. We conducted
7 Vendor Training sessions with
around 200 suppliers and continues to
Integrated Report
conduct business with more and more
business partners. As the vendor
fraternity was facing cash flow crisis
during Covid times, we extended our
support to them and made timely and
full payments in order to help them
recover from the crisis quickly which
further strengthened our supply chain.
14-44
Principles to maintain resilience in supply operations:
Statutory Reports
Health and Safety Agility Visibility End-to-End Cost
Transparency
00-00
We defined guidelines for We ensured preparedness for We handled inventories, We revamped procurement
safety of manpower, including production schedules based demand and supply conditions, strategies to review cost drivers
COVID-19 protocols. on available inventories, rapid flexible logistics to enable and have better visibility on
re-planning and scheduling to smooth flow of material. costs and saving potential.
avoid supply disruptions. During the lockdown, we Financial Statements
reconsidered existing purchase
orders and renegotiated
contracts to optimise spend.
Localisation Leveraging Sustainability

Technology
00-000
We encouraged regional We enabled information We assessed financial health,

manufacturers and developing technology into the supply statutory compliances, Energy
competent suppliers locally to chain for smooth and intelligent & Environment Management,
reduce our transport costs. operations like WMS, TMS, and Safety & Fire compliance
Vendor Portal. status of our suppliers.
39
Various initiatives undertaken

with Vendors:
•
Initiated process of electronic
signing of Vendor Code of Conduct
(VCoC) through Vendor Portal
which highlights ethical, legal
and environmentally responsible
business practices.
• Initiated electronic signing of Quality
Policy to make suppliers aware of
company policies and procedures.
• Implemented sustainability drive to
evaluate suppliers and mitigate risks
related to statutory and regulatory,
financial, fire and safety, energy
and environmental compliance
in Components and Finished
Goods suppliers. Suppliers have
been audited covering 80% of the
business spend.
Relationship with Channel Partners

Valuing the channel partner Tech to connect Going above and beyond
relationship We engaged with our partners over Our manufacturing plants, warehouses
We instilled confidence in the minds of multiple digital events. We also and sales teams worked cohesively
our dealers by simplifying the corporate established a two-way communication round-the-clock to service our
and product schemes to ensure that it channel to better understand their partners. As the lockdown was lifted
was easier for them to start business requirements. and markets began opening up, the
again. We did not differentiate between dealers returned the favour in spirit.
small and big dealers and gave them We not only recovered all the sale
the necessary push to reach the back, but we also outperformed the
last mile. previous year’s sales numbers despite
having faced challenging times during
the year.
40
Customer Service
Introduction 01-13
Omni
For Havells, customer experience is a Channels
top priority, and several initiatives are
adopted to provide better customer
experience during the pandemic.
This led to the Company securing the Delight Ground
industry’s highest Net Promotor Score Customer Zero
of 65%. Today, customers have full
control over opening and closing a
service request through the unique
Integrated Report
“Khushiyo Ki Guarantee”.
Core of Havells
Service
Training Leading
& Skill Edge
The year under review witnessed
the biggest challenge with restricted
movement of people owing to the
14-44
Covid-19 pandemic. It was indeed a
Infra
great challenge in meeting the training
& Speed
and development needs. With the
quick IT solutions, around, the entire
Statutory Reports
training system was moved online and
self-assisted. Through Saksham, our
inhouse self-learning app, Microsoft
Teams, we undertook over 91,000 man
hours of training.
The lockdown led to closing down of customer care centres, resulting in a complete
00-00
communication breakdown. However, with quick technology adoption, other online
channels including WhatsApp were quickly made available. Through the unique
video assisted on call resolution (OCR) programme, DIY (Do It Yourself) videos,
the customers’ needs were addressed seamlessly. We resumed our operations in Financial Statements
May, 2020. Health and safety of the customer and employees was paramount to
us. A Covid-19 protocol was developed and widely published to ensure customer
comfort and safety.
Besides WhatsApp, we are using world-class CRM, Offline Technician App, Smart
IVR and Automated Call Creation without the need for a physical agent. We are the
first in the industry to have achieved this.
00-000
41
Natural Capital
Our business model involves converting natural resources into social and economic
value. We actively support responsible manufacturing practices, robust resource
management and strict regulatory compliance. We have made environmental
performance a strategic initiative. We utilise a systematic approach to improve our
energy usage and incorporate environmental goals into our routine operations.
We measure and manage our impact on the environment in an effort to reduce
this to a minimum.
COVID-19 pandemic indirectly has been attributed to human interferences such as fragmentation of forest areas,
un-sustainable use of resources, encroachment on animal habitats and loss of bio-diversity. The emergence of the pandemic
has redefined the way we look at human-environment relationship. The impact of the lockdown on natural environment
brought to the fore the need to improve aspects of environmental parameters such as quality of water, decreasing global
emissions, and increase in bio-diversity richness, among others.
At Havells, our approach towards environmental sustainability is aimed at decoupling our business growth from emissions
and resource use, while increasing our positive contribution. In the aegis of our resilient strategies on the aspects of
clean manufacturing, we have sustained and improved our performance on natural parameters. We follow a long‐term
developmental process of accumulation and sound management of our portfolio of Natural Capital assets.
Financial
Capital
Set up a Wire plant
at Alwar as an IGBC
Green Building with
gold certification
Social &
Relationship Capital Manufactured
Planted 5 lakh saplings Capital
in reporting year, taking 100% of our plant
the total number of trees sites are equipped with
planted over 11 lakhs in rainwater harvesting
last 3 years
Key areas system
of action, Interlinkage
aligned with among Capitals
Strategy 2022 Intellectual
Capital
Natural Majority of our products
Climate and Energy
Capital are energy-efficient
Circular Economy
Human Capital
Environment All the plants underwent
online sustainability
Communities audit for the 1st time
42
Introduction 01-13
Rising share of
5.6 MW
Renewable Energy
In our contribution towards government’s generation capacity of 5.6 MW as of
push to increase the renewable energy March 2020-21. The manufacturing site
capacity, the Company has installed at Alwar, Rajasthan added 1.95 MW solar
captive solar power plants at its capacity, which will be commissioned in Total Capacity of
manufacturing sites with total power FY 2021-22.
solar power generation
8.5% 5394 tons 47%
Integrated Report
Share of renewable energy in total CO2 emissions mitigated with Reduction in energy intensity
electricity consumed in FY2021 substitution of conventional fuel (compared to base year 2015-16)
based electricity with solar energy
14-44
Statutory Reports
Manufacturing Facility at Ghiloth, Waste Management
Rajasthan has been recognised and We have installed Sewage Treatment
certified for Indian Green building Plants (STPs) at all our manufacturing
council (IGBC) Gold-rated certificate, sites, and Effluent Treatment Plants
under IGBC Factory Building Rating (ETPs), wherever needed, for the
system. This is aimed at implementing treatment of waste water. This treated
green concepts and techniques in the water is used for horticulture, which
industrial sector to address national reduces the need for fresh water.
00-00
priorities such as handling consumer About 95% of our non-hazardous
waste, water efficiency, reduction in waste avoids landfill and 100% of our
Promoting Green Infrastructure use of fossil fuels, energy efficiency hazardous waste generated is sold
and conserving natural resources. to pollution control board authorised
In view of enlarging our greener
recyclers.
footprint and growing our environmental
cautiousness, we have taken a step Water Stewardship
46114 KL
ahead towards green infrastructure. Water shortage and depleting water
During the year, the wire manufacturing resources has led to its rise as a valuable
plant at Alwar and Air Conditioner asset. At Havells, we are a water
positive company and understand
the value of water as a resource.
Water recycled in FY2021
We have implemented various
00-000
systems to reduce its consumption,

increase recycling and reuse waste
water, and recharge groundwater
through rainwater harvesting. All our
manufacturing plants are equipped
with rainwater harvesting systems that
include rooftop and paved surfaces for
94%
replenishment of groundwater. Share of Recycled Water consumed
43
Corporate Information
Company Registrars and

Secretary Share Transfer Agent
Sanjay Kumar Gupta Link Intime India Private Limited
Noble Heights, 1st Floor,
Plot No. NH 2, LSC, C-1 Block,
Near Savitri Market,
Janakpuri, New Delhi - 110 058
Auditors Tel: 011-41410592, 93
011-49411000
Statutory Auditors Fax: 011-41410591
S. R. Batliboi & Co. LLP Email id: delhi@linkintime.co.in
Chartered Accountants Website: www.linkintime.co.in
Internal Auditors Listed on

KPMG • National Stock Exchange of
India Ltd.
Cost Auditors • BSE Limited
M/s Sanjay Gupta & Associates
Cost Accountants
Secretarial Auditors
M/s MZ & Associates
Registered Office
Company Secretaries
904, 9th Floor, Surya Kiran Building,
K G Marg, Connaught Place,
New Delhi - 110 001
Bankers Corporate Office

• Canara Bank QRG Towers, 2D, Sector - 126,
Expressway, Noida - 201 304, (U.P.)
• IDBI Bank Limited
Tel: +91-120-3331000
• Yes Bank Limited Fax: +91-120-3332000
• HSBC Limited Website: www.havells.com
• Standard Chartered Bank CIN: L31900DL1983PLC016304
• Citi Bank
• Axis Bank Limited
• ICICI Bank Limited
• HDFC Bank Limited
44
Directors’ Report
Introduction 01-13
To
The Members
Your Directors take pleasure in presenting the 38th Integrated Annual Report on the business and operations of the Company
and the accounts for the Financial Year ended 31st March, 2021.
1. Financial Summary or Highlights

The Board’s Report is prepared based on the standalone financial statements of the Company. The Company’s financial
performance for the year under review alongwith previous year’s figures are given hereunder:
Integrated Report
(` in Crores)
Standalone Consolidated
Particulars
2020-21 2019-20 2020-21 2019-20
Revenue from Operations 10,427.92 9,429.20 10,457.30 9,440.26
Other Income 187.82 111.98 187.36 113.41
Operating Profit before Finance Costs, Depreciation, Tax and 1,753.08 1,139.36 1,759.14 1,142.06
Extraordinary items
Less: Depreciation and amortisation expenses 248.86 217.91 248.91 217.97
14-44
Finance Cost 72.64 19.72 72.68 19.72
Profit before Tax and Exceptional Expenses 1,431.58 901.73 1,437.55 904.37
Less: Tax 391.94 168.70 393.24 168.76
Statutory Reports
Net Profit for the Year from Continuing operations 1,039.64 733.03 1,044.31 735.61
Net Profit for the Year from Discontinued Operations - - - (0.26)
Profit for the year 1,039.64 733.03 1,044.31 735.35
Other Comprehensive Income (2.02) (3.73) (1.59) (3.23)
Total comprehensive income for the year, net of tax 1,037.62 729.30 1,042.72 732.12
Profit for the year attributable to:
Equity holders of the parent company 1,039.64 733.03 1,044.31 735.35
45-141
Non-controlling interest - - - -
Total comprehensive income for the year attributable to:
Equity holders of the parent company 1,037.62 729.30 1,042.72 732.12
Non-controlling interest - - - - Financial Statements
The year gone by started with an unprecedented optimisation and operating leverage. The finance cost
nation-wide lockdown due to pandemic which increased as the Company availed bank facilities
negatively impacted the economic activities across the during the year to meet any unforeseen exigencies.
globe. Post relaxation of lockdown economic activities However, as Company generated healthy cashflows,
gradually started picking up from mid May 2020. a significant part of the borrowings was repaid within
Havells, backed by manufacturing strength, robust same fiscal year. Effective tax rate was higher due to
supply chain management and strong distribution one-time tax reversal during FY2019-20 as Company
142-309
network made a strong come back. The recovery was adopted lower tax regime in FY2019-20 as announced
led by consumer segments of the business followed by by Finance Ministry.
pick up in industrial segments.
Economic environment continues to remain uncertain
Since second half of the year, input costs have been and challenging owing to Covid and partial lockdowns
on the rise. The Company is managing the same with across the country. However, we as an organisation
constant monitoring and swift decisions in line with remain vigilant to the ground developments with
the market dynamics. EBIDTA margins improved YoY confidence and optimism to manage emerging
(15.0% in FY21 vs 10.9% in FY 20) on account of cost scenarios.
45
2. Brief Description of the Company’s Working  Expanding distribution footprint in Urban

During the Year/ State of Company’s Affairs markets alongside treading into alternate
The raging pandemic is posing formidable and channels such as Online and CPC/CSD
unprecedented challenges across the business value canteens
chain. Team Havells is facing the headwinds, taking
nimble footed decisions and executing them with speed  Higher rural reach, both in terms of increased
to meet the current challenges on the ground as well penetration in smaller towns and introduction
as remain firmly on course for long term sustainable of new product lines especially developed
growth. for these markets
Our Approach  Robust supply chain gave an opportunity

to capitalize on the vacuum created in the
• In the beginning of FY21 when the situation
market due to supply chain disruptions faced
warranted, entire company’s focus was on
by the unorganized sector and import related
employee safety, conservation of cash and all-
challenges especially in Switchgear, Wires
round improvement of efficiency. Most of the
and Lighting
non-essential OPEX and CAPEX were curtailed
and sufficient liquidity was maintained without
 Home improvement emerged as one of the
affecting payments to stakeholders. The plans
big growth drivers for all the product offerings
for capex were minimized, still maintaining the
but more so for Electrical Consumer durables
continuity of projects in hand. Cross-functional
teams (CFTs) were formed with senior leadership
Air conditioners spearheaded the growth in
across the country focusing on different aspects
Lloyd, supported by washing machines and
of the Company such as Manufacturing, Branch
recently launched Refrigerators. Significant AC
operations, Supply chain, Go to Market etc. for
growth owing to perceived change in industry
swift decision making & execution during an
dynamics consequent to import prohibitions,
unprecedented & uncertain environment.
better availability from own production and wider
network coverage through regional retail chains.
• When the opportunity presented in H2 with pent up
demand, improved consumer sentiment and brand
Balance sheet
preference we made a strong comeback with
highly motivated teamwork across organization. The speed and scale of recovery ensured that
The operations were taken to full scale, factories Havells at overall level improved upon last
were ramped up to full capacities, supply chain financial year performance in both volumes and
strengths ensured continued availability of profitability, despite loosing crucial initial part of
stocks at all levels. Consumer engagement was the year.
augmented through digital modes, Marketing
spends were amplified. Despite this being a very Havells carries a robust Balance sheet with
challenging year, the R&D team continued to healthy working capital and liquidity position.
churn out new products to entice the consumers Short term loan was taken to meet exigencies
which were launched through digital events with during lockdown but the same was fully repaid
extensive trade participation. 4,766 new SKUs during the year. Post the payment of Interim
were launched across various categories. dividend of ` 188 crores and net Capex of
` 219 crores, there is a healthy cash balance of
Operations ` 1,931 crores as at the end of the year.
As we entered 2021, the outlook was uncertain
& no specific expectations for growth were set, Awards and Accolades
however as the year progressed, Havells was able Your Company received the following awards
to scale up and all the Business Units surpassed during the Financial Year ended 31st March, 2021:
the 2020 base year revenue. Encouraging 1. 10th CII Design Excellence Awards 2020 for
business performance with highest ever sales and
Crabtree SmartH Automation Range given by
profitability achieved during the year.
India’s 30 Best Workplaces in Manufacturing
The revenue growth was secular across divisions 2. Received India Design Mark award for Edgelit
and regions led by: – No dark edges Batten and Nu Bulb+ given
by Indian Design Council
 Improvement in consumer sentiment as
they adopted and learned to live with Covid 3. Gold Certification award for Green Factory
related challenges Building Rating System by Indian Green
46
Building Council (IGBC) to Havells Wire The annual accounts of the subsidiary companies shall
Introduction 01-13
Manufacturing Plant at Alwar, Rajasthan also be kept for inspection by any shareholder in the
Head Office of the Company and the respective offices
4. Great Place to Work award “India’s 30 Best
of its subsidiary companies.
Workplaces in Manufacturing – 2021” given
by Great Place to Work® Institute Joint Venture
5. Award for runner up Quality Circle Your Company had formed a 50:50 joint venture in
Competition FY 2020-21 given to Baddi Plant, People’s Republic of China with Shanghai Yaming
by CII (Confederation of Indian Industry) Lighting Co. Limited under the name of Jiangsu Havells
Sylvania Lighting Co. Limited (JV). This Joint Venture
6. Best CEO Award to CMD Shri Anil Rai Gupta
Company was created with an objective to produce
by the Business Today
energy efficient lighting lamps. In Financial Year 2017-
7. Gold Certification award for Green Factory 18, owing to the technological changes in the lighting
Building Rating System by Indian Green Industry, the Company along with its JV partner had
Integrated Report
Building Council (IGBC) to Havells AC decided to close down the business and liquidate
manufacturing plant, Ghiloth the JV. Accordingly, the regular operations were fully
closed in October 2017. Liquidation of the company is
Subsidiary Companies, Joint Venture and under process.
Consolidated Financial Statements
As on 31st March, 2021, the Company had two direct 3. Names of Companies which have become or
overseas subsidiaries: ceased to be its Subsidiaries, Joint Ventures
or Associate Companies during the year
1. Havells Holdings Limited based at Isle of Man. There are no companies which have become or ceased
14-44
2. Havells Guangzhou International Limited based at to be subsidiary, joint venture and / or associate of the
company during the financial year 2020-21.
China.
4. Reserves
Statutory Reports
The Consolidated Profit and Loss Account for the
period ended 31st March, 2021, includes the Profit and Your Directors do not propose to transfer any amount to
Loss Account for the subsidiaries and the Joint Venture the general reserve and entire amount of profit for the
Company for the complete Financial Year ended 31st year forms part of the ‘Retained Earnings’
March, 2021. The Board of Directors of the Company
has, by Resolution passed in its Meeting held on 5. Dividend
20th May, 2021, given consent for not attaching the In line with the Dividend Policy of the Company
Balance Sheets of the subsidiaries concerned. The which is available in the “Codes & Policies” section
Consolidated Financial Statements of the Company in the Investor Relations section on the website of the
45-141
including all subsidiaries duly audited by the statutory Company and can be accessed at https://www.havells.
auditors are presented in the Integrated Annual com/en/discover-havells/investor-relation/codes-and-
Report. The consolidated financial statements have policies.html The Board of Directors, in its Meeting held
been prepared in strict compliance with applicable on 20th January, 2021, declared an interim dividend of Financial Statements
Accounting Standards and wherever applicable, the ` 3/- per equity share of face value of ` 1/- each, to all
SEBI (Listing Obligations and Disclosure Requirements) the shareholders who were recorded on the register of
members as on 29th January, 2021, being the record
Regulations, 2015, as prescribed by the Securities and
date fixed for this purpose.
Exchange Board of India. A Report on Performance
and Financial Position of each of the Subsidiaries and
In addition to the Interim Dividend, your Directors are
Joint Venture Companies included in the Consolidated
pleased to recommend a Final Dividend @ ` 3.50 per
Financial Statement is presented in a separate section
equity share for the year 2020-21.
in this Integrated Annual Report. Please refer (Form
142-309
No. AOC-1) annexed to the Financial Statements The proposed dividend, subject to approval of
in the Integrated Annual Report. The standalone Shareholders in the ensuing Annual General Meeting
annual accounts of the subsidiary companies and of the Company, would result in appropriation of
the detailed related information shall be made ` 219.10 crores (inclusive of TDS). The dividend would
available to Shareholders of the Company and of its be payable to all Shareholders whose names appear in
subsidiary companies upon request and it shall also the Register of Members as on the Book Closure Date.
be made available on the website of the Company i.e. The Register of Members and Share Transfer books
https://www.havells.com/en/discover-havells/investor- shall remain closed from 19th June, 2021, Saturday to
relation/financials/balance-sheet.html 23rd June, 2021, Wednesday (both days inclusive).
47
6. Material changes and commitments, if any, Further, upon the recommendation of the Nomination
affecting the financial position of the company and Remuneration Committee, the Board of Directors,
which have occurred between the end of the in its Meeting held on 20th January, 2021, appointed
financial year of the Company to which the Smt. Namrata Kaul (DIN: 00994532) as an Independent
financial statements relate and the date of the Director (Additional) with effect from 20th January, 2021
Report and further in its Meeting held on 20th May, 2021,
No material changes and commitments affecting the appointed Shri Ashish Bharat Ram (DIN: 00671567) as
financial position of the Company occurred between an Independent Director (Additional) with effect from
the end of the financial year to which these financial 20th May, 2021. Both the Directors hold office upto the
date of forthcoming AGM.
statements relate and the date of this Report.
The Company has received consent in writing from

However, in terms of the Employee Stock Purchase
both the Directors to act as Director in Form DIR-2
Schemes of the Company, which are administered
and intimation in Form DIR-8 to the effect that they are
by Havells Employees Welfare Trust, 2,86,810 Equity
not disqualified u/s 164(2) to act as Director. Both the
Shares of ` 1/- each, were approved for Grant on
persons are eligible to be appointed as Directors of the
20th May, 2021 and Vested (pursuant to the respective
Company and their appointment requires the approval
Employee Stock Purchase Plan as hereunder) to the
of Members at the ensuing Annual General Meeting.
eligible employees, which, if exercised, shall result in
The Board recommends for shareholders’ approval at
an equivalent no. of Equity Shares of ` 1/- each to be
the forthcoming AGM, the appointment of Smt. Namrata
allotted/ transferred to the eligible employees under the
Kaul and Shri Ashish Bharat Ram as Independent
respective schemes.
Directors for a First Term of 5 (five) years.
A summary is given below:
During the year, Shri Vellayan Subbiah (DIN: 01138759),
No. of No. of resigned as an Independent Director on 22nd October, 2020.
Shares Shares
Granted Vested The Board places on record its appreciation for the
Havells Employees Stock 68,356 68,356 valuable contributions made by Shri Vellayan Subbiah
Purchase Plan 2014 in all areas of Board’s functioning during their tenure as
Havells Employees Stock 2,10,000 2,10,000 Non-executive Independent Director on the Board.
Purchase Scheme 2015
Havells Employees Stock 8,454 11,705* The Members may also note that, Shri Upendra Kumar
Purchase Scheme 2016 Sinha (DIN: 00010336) and Shri Jalaj Ashwin Dani
*2,818 Shares vested as 1st tranche out of a total of 8,454
(DIN: 00019080) were appointed as Independent
Shares Granted for financial year 2020-21, 4,386 Shares Directors for a 1st term of 3 (Three) years with effect
vested as 2nd tranche out of a total of 13,157 Shares Granted from 20th July, 2018 (the date of AGM 2018) upto the
for financial year 2019-20 and 4,501 Shares vested as conclusion of Annual General Meeting of the Company
3rd tranche out of a total of 16,273 Shares Granted for financial to be held in the calendar year 2021.
year 2018-19.
The Board upon the recommendation of the Nomination
7. Change in the nature of business, if any and Remuneration Committee, in its Meeting held
There was no change in the nature of business of the on 20th May, 2021, has approved and recommends
Company during the financial year ended 31st March, the same for approval by the Shareholders, the re-
2021. appointment of Shri Upendra Kumar Sinha and Shri
Jalaj Ashwin Dani, for a Second Term of 5 (Five) years
8. Details of Directors or Key Managerial with effect from the date of the forthcoming Annual
Personnel including those who were appointed General Meeting of the Company.
or have resigned during the year
The Company has received declarations from the
During the financial year 2020-21, the following were
Independent Directors that they meet the criteria of
appointed as Independent Directors for a First Term of
independence as prescribed u/s 149(6) of the Companies
5 (Five) years as approved by the Shareholders in the
Act, 2013 and the SEBI Listing Regulations. In the opinion
last Annual General Meeting of the Company held on
of the Board, they fulfil the condition for appointment/
22nd June, 2020.
re-appointment as Independent Directors on the Board.
• Shri Subhash S Mundra (DIN: 00979731) Further, in the opinion of the Board, the Independent
Directors also possess the attributes of integrity, expertise
• Shri Bontha Prasada Rao (DIN: 01705080)
and experience as required to be disclosed under Rule
• Shri Vivek Mehra (DIN: 00101328) 8(5) (iiia) of the Companies (Accounts) Rules, 2014.
48
The Members may also note that, Shri T. V. Mohandas Company were also held on 29th October, 2020 and 24th
Introduction 01-13
Pai (DIN: 00042167) and Shri Puneet Bhatia March, 2021, without the presence of Non-Independent
(DIN: 00143973), were appointed as directors liable to Directors and members of the management, to review
retire by rotation, in the AGM held on 20th July, 2018, the performance of Non-Independent Directors and the
upto the conclusion of Annual General Meeting of the Board as a whole, the performance of the Chairperson
Company to be held in the calendar year 2021. of the company, taking into account the views of
Executive Directors, Non-Executive Non-Independent
The Board upon the recommendation of the Nomination Directors and also to assess the quality, quantity and
and Remuneration Committee, in its Meeting held on 20th timeliness of flow of information between the Company
May, 2021, has approved and recommends the same management and the Board.
for approval by the Shareholders, the re-appointment
of Shri T. V. Mohandas Pai and Shri Puneet Bhatia, for
a further period of 5 (five) years upto the date of AGM
10. Directors’ Responsibility Statement
to be held in the calendar year 2026. Pursuant to Section 134(3)(c) of the Companies Act,
2013, the Directors to the best of their knowledge
Integrated Report
Shri Siddhartha Pandit (DIN: 03562264), Whole-time hereby state and confirm that:
Director, was last appointed by the Shareholders of the
Company in the Annual General Meeting held in 2019 a) in the preparation of the annual accounts, the
for a term of 3 (three) years with effect from 29th May, applicable accounting standards had been
2019. His term shall expire next year on 28th May, 2022. followed along with proper explanation relating to
material departures;
Accordingly, the Board of Directors, upon the
recommendation of the Nomination and Remuneration b) the directors had selected such accounting
Committee, in its Meeting held on 20th May, 2021, policies and applied them consistently and made
14-44
has approved the re-appointment of Shri Siddhartha judgments and estimates that are reasonable
Pandit, as a Whole-time Director of the Company for and prudent so as to give a true and fair view of
another term of 3 (three) years with effect from 29th the state of affairs of the company at the end of
May, 2022. The re-appointment is subject to approval the financial year and of the profit and loss of the
Statutory Reports
of the shareholders in general meeting and the Board Company for that period;
recommends the same at the ensuing AGM.
c) the directors had taken proper and sufficient
Further, pursuant to the provisions of Section 152 of care for the maintenance of adequate accounting
the Companies Act, 2013, Shri Ameet Kumar Gupta records in accordance with the provisions of this
(DIN: 00002838) and Shri Surjit Kumar Gupta (DIN: Act for safeguarding the assets of the Company
00002810), are due to retire by rotation at the ensuing and for preventing and detecting fraud and other
Annual General Meeting, and being eligible, offer irregularities;
themselves for re-appointment. The Board recommends
45-141
d) the directors had prepared the annual accounts
their appointment.
on a going concern basis;
The details of Directors being recommended for
e) the directors, had laid down internal financial
re-appointment as required under the SEBI (Listing Financial Statements
controls to be followed by the Company and that
Obligations and Disclosure Requirements) Regulations,
such internal financial controls are adequate and
2015 are contained in the accompanying Notice
were operating effectively; and
convening the ensuing Annual General Meeting of
the Company. Appropriate Resolution(s) seeking your f) the directors had devised proper systems to
approval to the re-appointment of Directors are also ensure compliance with the provisions of all
included in the Notice. applicable laws and that such systems were
adequate and operating effectively.
9. Number of Meetings of the Board of Directors
142-309
During the Financial Year 2020-21, the Board of

11. Declaration by Independent Director(s) and
Directors of the Company, met 5 (Five) times on 12th
re-appointment, if any
May, 2020, 27th July, 2020, 29th October, 2020, 20th
January, 2021 and 24th March, 2021. All the Independent Directors have submitted
their disclosures to the Board that they fulfil all the
Pursuant to the requirements of Schedule IV to the requirements as stipulated in Section 149(6) of the
Companies Act, 2013 and the SEBI (Listing Obligations Companies Act, 2013 and and the SEBI Listing
and Disclosure Requirements) Regulations, 2015 and Regulations, so as to qualify themselves to be appointed
upholding the good norms of Corporate Governance, as Independent Directors under the provisions of the
separate Meetings of the Independent Directors of the Companies Act, 2013 and the relevant rules.
49
12. Nomination and Remuneration Policy of are tested to see how well the Board and Committees
Directors, Key Managerial Personnel and other have performed in achieving their desired roles and
employees responsibilities. Board, Committee and individual
In adherence of Section 178(1) of the Companies director evaluation parameters cover topics that
Act, 2013, the Board of Directors of the Company in elicit valuable, candid and useful feedback on board
its Meeting held on 22nd December, 2014, approved dynamics, operations, structure, performance and
a policy on directors’ appointment and remuneration composition.
including criteria for determining qualifications, positive
attributes, independence of a director and other matters Performance evaluation of the Board and
provided u/s 178(3), based on the recommendations Committees
of the Nomination and Remuneration Committee. The The performance of the Board was evaluated by the
broad parameters covered under the Policy are – Board Members after considering inputs from all the
Company Philosophy, Guiding Principles, Nomination Directors primarily on:
of Directors, Remuneration of Directors, Nomination
• Board composition with emphasis on its size,
and Remuneration of the Key Managerial Personnel
diversity, skill set of members;
(Other than Managing/ Whole-time Directors),
Key-Executives and Senior Management and the • Board processes, structure and communication
Remuneration of Other Employees. The Company’s with emphasis on the frequency of meetings,
Policy relating to appointment of Directors, payment attendance thereof, flow of information,
of Managerial remuneration, Directors’ qualifications, accessibility to product heads, senior management
positive attributes, independence of Directors and for informed decision making;
other related matters as provided under Section
178(3) of the Companies Act, 2013 is furnished in • Board responsibilities wherein disclosure of
ANNEXURE – 1 and forms part of this Report. The information and other key functions of the Board
Policy is also available in the Investor Relations section, like monitoring effectiveness of Company’s
under the “Codes & Policies” tab, on the website of the governance practices, ensuring integrity of
Company and can be accessed at the weblink https:// Company’s accounting and financial reporting
www.havells.com/en/discover-havells/investor-relation/ systems, including independent audit, adequacy
codes-and-policies.html of controls for risk management, compliance with
statutory laws etc. were evaluated.
13. Formal Annual Evaluation
The Board then evaluated the performance of the
The Companies Act, 2013 and SEBI (Listing Obligations
Committees on the following parameters:
and Disclosure Requirements) Regulations, 2015
(“SEBI LODR”) contain provisions for the evaluation of • appropriateness of size, delegation of power basis
the performance of: the complexity and operations of the organisation;
(i) the Board as a whole, • standards of legal compliance;
(ii) the individual directors (including independent • Standards of financial reporting and control;
directors and Chairperson) and
• Reporting to the Board on the Committee’s
(iii) various Committees of the Board. activities;
The Board of Directors has carried out an annual • Major issues discussed and Recommendations
evaluation of its own performance, Board Committees made to the Board;
and Individual Directors pursuant to the provisions • Effectiveness of supporting the Board in fulfilling
of the Companies Act, 2013 and Regulation 17(10) its responsibilities.
of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. Consequently, the Performance Evaluation of Individual Directors
Company is required to disclose the manner of formal
annual evaluation. The performance evaluation of the Chairman and the
Non-Independent Directors were carried out by the
Evaluation process tests whether the Board’s Independent Directors, considering aspects such as:
composition, dynamics, operations and structure are
• Effectiveness as Chairman, in developing and
effective for the Company and its business environment,
implementing the strategic vision of the Company;
both in the short- and long-term. The benchmarking
of standards of performance and identifying areas of • Display of effective leadership and promoting a
improvement help decide the future trajectory. Both behaviour consistent with the culture and values
inter member relations and intra committee relations of the organisation;
50
• Contributing objectively to thoughtful and clear As a strategic management exercise, the setting of
Introduction 01-13
discussions for decision making; long-term vision of the Company is paramount. In
order to facilitate this operation, positive feedback was
• Ability of perceiving risks for the Company;
also received on the exclusive meeting of the Board,
• Demonstrating integrity, avoidance of conflict- focused on matters including long term business
of-interest disclosures and upholding utmost strategies in different product segments, different
confidentiality of sensitive matters. market segments-including e-commerce strategy,
export strategy, market share plans, capex etc.
The performance evaluation of the Independent
Directors was carried out by the entire Board, other 14. Annual Return
than the Independent Director concerned, taking into
A copy of the Extracts of the Annual Return of the
account parameters such as:
Company as required under section 134(3)(a) of the
• ensuring that no action lead to loss of Companies Act, 2013, in Form MGT-9, as they stood
independence; on the close of the financial year i.e. 31st March, 2021
Integrated Report
• absolute compliance of prevention from disclosure is furnished in ANNEXURE – 2 and forms part of this
of confidential information, including, but not Report.
limited unpublished price sensitive information;
Further, a copy of the Annual Return of the Company
• support to Chairman and executive directors in containing the particulars prescribed u/s 92 of the
instilling appropriate culture, values and behaviour Companies Act, 2013, in Form MGT-7, as they stood
in the boardroom;
on the close of the financial year i.e. 31st March, 2020
• Facilitating well deliberated decision making; is uploaded on the website of the Company in the
Investor Relations Section under Disclosures and can
14-44
• Expressing clearly their assent, dissent or
be accessed from https://havells.com/en/discover-
neutrality to any decision
havells/investor-relation/disclosures.html
• Updating the Company’s external environment in
which it operates; 15. Auditors
Statutory Reports
• Facilitate the promotion of the interest of the 1. Statutory Auditors
Company as a whole, in situations of conflict As per provisions of Section 139(1) of the
between management and shareholders’ Companies Act, 2013, at the forthcoming Annual
interest etc. General Meeting, M/s S.R. Batliboi & Co. LLP,
Chartered Accountant (Regn. No. 301003E/
Evaluation Outcome E300005) are completing their 2nd five year term
The Board considered and discussed the inputs as Statutory Auditors.
received from the Directors. Further, the Independent
45-141
Directors at a separate meeting reviewed the Upon the recommendation of the Audit Committee,
performance of the Non-Independent Directors, the the Board of Directors approves and recommends
Board as a whole and Chairman of the Board after for shareholders’ approval the appointment of M/s
taking into account the views of Executive Directors Price Waterhouse & Co Chartered Accountants
and other Non-Executive Directors. LLP (Registration No. 304026E/ E300009) for a
first term of 5 (five) years to hold office from the
It was found that the Board of Directors provided conclusion of this 38th Annual General Meeting
strategic leadership and contribution towards until the conclusion of the 43rd Annual General
achieving the organizational objectives amidst the
Meeting of the Company to be held in the calendar
current pandemic situation. It was felt that the Board
year 2026.
had provided appropriate support and guidance to
lead the Company. The Board played a strategic role
Statutory Auditors’ Report
142-309
in ensuring the Company dealt with the unforeseen

circumstances which could not have been provided for The observations of Statutory Auditor in its reports
beforehand. The Board of Directors therefore ensured on standalone and consolidated financials are
that all stakeholders were not adversely affected by self-explanatory and therefore do not call for any
the market exigencies. Individual Board Members further comments.
continued to demonstrate a strong commitment to the
principles of ethics and transparency which are the Details in respect of frauds reported by
cornerstones of the Company’s corporate governance auditors
framework. The Board itself and its Committees There were no instances of fraud reported by the
continued to function effectively. auditors.
51
2. Cost Auditors 17. Particulars of contracts or arrangements with

As per Section 148 of the Companies Act, 2013, Related Parties
the Company is required to have the audit of its The particulars of every contract and arrangement if
cost records conducted by a Cost Accountant in entered into by the Company with related parties referred
practice. to in sub-section (1) of Section 188 of the Companies
Act, 2013 including certain arm’s length transactions
Pursuant to the provisions of Section 141 under third proviso thereto are disclosed in Form No.
read with Section 148 of the Companies AOC-2 in ANNEXURE – 5 and forms part of this Report.
Act, 2013 and Rules made thereunder, M/s
Sanjay Gupta & Associates, Cost Accountants 18. Contribution to Exchequer
(Firm Regn. No. 000212) were appointed as the
The Company is a regular payer of taxes and other
Cost Auditor of the Company for the year ending
duties to the Government. During the year under
31st March, 2021.
review your Company paid ` 271.78 crores towards
The due date for filing the Cost Audit Report of the Corporate Income Tax as compared to ` 352.24 crores
Company for the financial year ended 31st March, paid (including Corporate Dividend Tax) during the last
2020 was 10th June, 2020 and the same was filed financial year. The Company has also paid an amount of
in XBRL mode by the Cost Auditor within due date. ` 2,166.38 crores on account of GST and Custom duty
and not claimed any government assistance and support
Disclosure on maintenance of Cost Records during financial year 2020-21 as compared to ` 1,991.40
The Company made and maintained the Cost crores paid and claimed a government assistance and
Records under section 148 of the Companies Act, support of ` 26.92 crores during last Financial Year.
2013 (18 of 2013) for the Financial Year 2020-21.
19. Details relating to deposits covered under
3. Secretarial Auditors Chapter V of the Companies Act, 2013
Pursuant to the provisions of Section 204 of the The Shareholders vide their Special Resolution dated
Companies Act, 2013 read with corresponding 9th June, 2014, passed by way of Postal Ballot, have
Rules framed thereunder, M/s MZ & Associates approved inviting/ accepting/ renewing deposits, in
were appointed as the Secretarial Auditors of the terms of the provisions of Companies Act, 2013 making
Company to carry out the secretarial audit for the the Company eligible for the same. However, the
year ending 31st March, 2021. Company has not accepted any deposits during the
year under review.
Annual Secretarial Audit Report
In terms of Section 204 of the Companies Act, 20. Corporate Social Responsibility (CSR)
2013 and Regulation 24A of the SEBI (Listing
Havells India Limited, since its inception has always
Obligations and Disclosure Requirements)
believed that any organization with its roots in India
Regulations, 2015, a Secretarial Audit Report
owes a moral duty towards the people, environment
given by the Secretarial Auditors in Form No. MR-3
and society in which it operates. This belief has led to
is annexed with this Report as ANNEXURE – 3.
There are no qualifications, reservations or targeted efforts by the organization for the communities
adverse remarks made by Secretarial Auditors in in fields related to sanitation and hygiene, nutrition,
their Report. infrastructural support, etc. Being a responsible
corporate citizen, our initiatives are focused at
Annual Secretarial Compliance Report delivering maximum value to the society, under our
A Secretarial Compliance Report for the financial Corporate Social Responsibility (CSR) initiatives.
year ended 31st March, 2021 on compliance of
all applicable SEBI Regulations and circulars/ Company’s approach to CSR has been more than just
guidelines issued thereunder, was obtained from compliance. Our social initiatives started way before
M/s MZ & Associates Secretarial Auditors and CSR was mandated by the government under the
submitted to both the stock exchanges. Companies Act, 2013. We try and strike an optimum
balance between long-term plans and strategies and
16.
Particulars of Loans, Guarantees or our medium- and short-term initiatives which in turn are
Investments under section 186 guided by our strong CSR policy foundation.
The particulars of loans given, investments made and
guarantees provided by the Company, under Section Our focus primarily always has been towards the core
186 of the Companies Act, 2013, as at 31st March, areas for example our CSR activities focusses a great deal
2021, are furnished in ANNEXURE – 4 and forms part on activities pertaining to Child welfare, where, nutrition,
of this Report. sanitation and education plays crucial role in shaping
52
their future. Our initiatives are also aligned to United support to the society, we have been supporting Ashoka
Introduction 01-13
Nation’s Sustainable development goals (UN-SDGs). Our University for developing educational infrastructure
various core areas of CSR interventions include Health facilities.
& nutrition, Sanitation, Education, Environment, Skill
development, Heritage conservation, Healthcare and Focusing on our plan to strengthen the school
Humanitarian causes. Some of our major initiatives are: infrastructure, the company also donates tables and
benches to the government schools in district Alwar
Meals Distribution during COVID times and Neemrana in Rajasthan and district Haridwar in
To counter malnutrition, eradicate hunger and promote Uttarakhand, that are made from recycled waste wood
pallets in plants. This innovative approach ensures
education, Havells started the mid-day meal program in
dual benefit, by not only reducing wastage of wood but
Alwar district in Rajasthan, way back in 2005. We started
by also effectively uses the left-over wood in making
our journey with serving just 1,500 children across 5
furniture. Till date we have donated over 2,500 such
schools and have over the years increased our reach to
sets that is benefitting over 5,000 students in the
693 schools where we are serving over 60,000 students
Integrated Report
government schools.
daily. In wake of pandemic last year, the program has
been suspended due to shutdown of schools.
Towards greener society
However, in line with the local governments’ initiative of Rapid urbanisation and defragmentation of forests is
food distribution to the needy people, we extended our having severe effects on the environment. In view of
mid-day meal kitchen facilities to provide food to the our commitment to become wood and paper neutral
in coming years, the company has undertaken large
people impacted by the pandemic. During the year we
scale tree plantation exercise outside its premises.
distributed around 3.5 lakh meals. Since the inception
Since last 3 years, we have planted over 11 lakhs,
14-44
of the initiative i.e. in 2005, we have served over 90
out of which approximately 5 lakhs tree saplings were
million meals to the students.
planted in the present FY i.e. 2020-21 only.
Hygiene and Sanitation – Bio-toilets and
Further, the company has existing CSR Committee and
Statutory Reports
distribution of Re-usable Sanitary Napkins
Policy as per the applicable laws and regulations. The
The company has been proactive in delivering its disclosures on the same as per Rule 8 of Companies
responsibility in the areas of hygiene and sanitation (Corporate Social Responsibility Policy) Rules, 2014,
to the society. It is our firm belief that WaSH (Water, as amended, are annexed herewith as ANNEXURE – 6
Health and Sanitation) initiative is critical for ensuring to this Report in the prescribed format.
overall development of the child. This initiative aligns
with the ambitious ‘Swachh Bharat Mission’ advocated 21. Audit Committee
by the Government of India and with the United Nations As at 31st March, 2021, the Audit Committee of the
45-141
Sustainable Development Goal No-3 & 6. Board of Directors of the Company comprised of
4 (Four) Members, namely Shri Upendra Kumar
It has been proved by various researchers across the Sinha, Smt. Pratima Ram, Shri Subhash S Mundra
world that in addition to intake of nutritional food, better and Shri Surjit Kumar Gupta, majority of them being
sanitation and hygiene are also must for balanced
Independent Directors except Shri Surjit Kumar Gupta,
growth and development of a child. Sanitation is one who is a Non-Independent Non-Executive Director. Shri
of the most basic amenities for which awareness has Upendra Kumar Sinha, an Independent Director, is the
been continuously increased over the years. Our Chairman of the Audit Committee. The Board accepted
activities include development and maintenance of the recommendations of the Audit Committee whenever
bio-toilets. Till last year we have constructed around made by the Committee during the year.
400 bio-toilets in the government schools in Alwar,
Rajasthan. To further enhance the female health and 22. Enterprises Risk Management Framework
hygiene standards, we also distribute reusable sanitary The Company has robust systems for Internal Audit
142-309
napkins to the girls in the government schools. and Enterprise Risk assessment and mitigation. As
part of the Annual Internal Audit Plan, all the locations
Contributing to Societal Education and including plants, branches, warehouses and Head
Infrastructure Office are covered. At the start of the year Risk
Education is one of the most important elements for any Assessment refresh is done basis which Risk Based
nation to reap benefits of its demographic dividend. A Internal Audits (RBIA) are carried out. The audit plan
quality school education includes well defined-course is approved by the audit committee. Further, on a
curriculum and adequate infrastructure support to make quarterly basis summary of key findings is presented to
it effective and sustainable. Contributing to educational the Audit committee.
53
With increasing globalization and unprecedented Dashboard/ Compliance Management System/ GRC
changes in business environment Companies are Process Control. The internal control system ensures
currently operating in VUCA (Volatility, uncertainty, compliance with all applicable laws and regulations.
complexity and ambiguity) environment. The
To ensure effective Internal Financial Controls,
omnipresence and growing intensity of VUCA presents
Company has laid down the following measures:
roadblock and uncertainties to most company’s journey
towards their objectives. 1. Company has defined and documented the
Standard Operating Procedures (SOPs) and
At Havells, our strong Governance and business Delegation of Authority (DOA) which forms the
structure, with stakeholder interest at the core, makes basis for compliance to laid down procedures. The
us cognizant of these risks and uncertainties that our SOPs and DOA are refreshed on a periodic basis.
business faces. The Company on a periodic basis 2. All regulatory compliances are monitored for all
identifies these uncertainties and after assessing them, locations Pan India through a fully automated tool.
formulates short-term and long-term action plans to Company has a “Zero Tolerance” Policy towards
mitigate any risk which could materially impact the non-compliances.
Company’s long-term goals and Vision.
SAP GRC (with respect to access control) has been
The Company has a well-established Enterprise risk implemented which also take care of users’ conflict
Management framework and process to ensure relating to Segregation of Duties (SOD).
achievement of its strategic objectives. Internationally
accepted framework, issued by the Committee of 24. Details of establishment of Vigil Mechanism
Sponsoring Organizations (COSO) of the treadway for Directors and Employees
Commission, is considered as a self-benchmarking for The Company has established a vigil mechanism
Company’s Enterprise Risk Management framework. “Satark” through which employees and business
associates may report unethical behaviour, wrong
Our sustainable focus on leveraging next generation doing, malpractices, fraud, violation of Company’s
technology, supports an enterprise-wide view of risks and code of conduct, leak or suspected leak of unpublished
compliance, enabling a more holistic approach towards price sensitive information without fear of reprisal.
informed decision making. Risks are assessed and
managed at various levels with a top-down and bottom-up The Policy provides that the Company investigates
approach covering the enterprise, the Strategic business such reported matters in an impartial manner and takes
units, the geographies and the functions. appropriate action to ensure that requisite standards
of confidentiality, professional and ethical conduct
ERM Committee comprising of the Board Members, are always upheld. Any complaint received under
reviews the progress status of identified risks including Satark policy are also reported to the Chairman of
emerging business challenges on a periodic basis. the Audit Committee. Satark policy of the Company is
ERM Council works closely with all the business & also available on the website of the Company https://
functional teams for monitoring the agreed execution www.havells.com/en/discover-havells/investor-relation/
plan and identification of new emerging business codes-and-policies.html
challenges under the guidance of Top Leadership.
25. Details of significant and material orders
23. Details in respect of adequacy of internal passed by the regulators or courts or tribunals
financial controls with reference to the impacting the going concern status and
Financial Statements Company’s operations in future
The Company has robust internal financial controls There was no significant and material order passed by
(IFC) systems, which is in line with requirement of the the regulators or courts or tribunals impacting the going
Companies Act, 2013, which is intended to increase concern status and Company’s operations in future.
transparency & accountability in an organization’s
process of designing and implementing a system of 26. Compliance with Secretarial Standards
internal control. Our IFC process, facilitates orderly and The Company is in compliance with the applicable
efficient conduct of its business including adherence Secretarial Standards issued by the Institute of
to Company’s policies, safeguarding of its assets, Company Secretaries of India and approved by the
prevention and detection of frauds and errors, accuracy Central Government under Section 118(10) of the Act.
and completeness of the accounting records and timely
preparation of reliable financial information. Risk Control 27. Employee Relations
Matrices (RCMs) have been prepared for all Business This year has changed the world and the way we
functions along with the mapping with Functional operate, bringing new challenges, outlook and
54
opportunities, but one thing that didn’t change for us office premise as per roster. Flexi timing and various
Introduction 01-13
was our commitment and compassion towards our relaxations related to age, proximity etc. were also
employees and their wellbeing. provided, to help employees balance their home and
work responsibilities suitably.
During Lockdown, when the whole country was on a
standstill and everyone was concerned about health, As part of our open and transparent culture, we always
well-being and future of their family, our CMD – Shri encourage employees to share their feedback and
Anil Rai Gupta led from the front and addressed the work upon it. Despite the challenges due to pandemic,
employees online on regular basis. The intent was to we participated in the Great Place to Work Assessment
reassure employees that we are all in this together and and got certified for the second consecutive year.
motivate them to stay positive and see how best to We have also been recognized among ‘India’s Best
Workplaces in Manufacturing 2021’ – Top 30. Out of
serve the customer.
110 organizations in the Manufacturing sector who
undertook the assessment, Top 30 organizations are
To deal with COVID outbreak, we adopted a holistic
Integrated Report
identified, which excel both on people practices and
approach to spread awareness among employees
the feedback from their employees on creating a High
through various platforms. We reassured employees
Trust Culture. This recognition is evidence of solidarity
that their safety is paramount and their company is and resilience of Havells family, especially in today’s
and will do everything to safeguard their interest and scenario where our way of interactions and working is
wellbeing. Our proactive measures included initiatives changing. It also reflects the pride and passion of our
like Workplace SOP & Guidelines for COVID, dedicated teams to achieve greater heights.
Covid helpline for information sharing and support,
constant communication on our preparedness and Towards our vision & focus of digital working, we
have moved one step forward through digitalization
14-44
safety procedures, health support and guidelines,
suggestive measures at home, awareness session at of our Recruitment Process & launch of in-house
locations involving local authorities etc. Our factories e-recruitment solution. The portal facilitates the entire
also resumed operations with strong compliance process of shortlisting, interviewing, approvals, offer
release & acceptance digitally, along with on-boarding
Statutory Reports
on hygiene and social distancing along with other
& e-appointment letter.
regulatory requirements.
At Havells, we ensure that there is full adherence to
During Lockdown, an initiative of SAMVAAD was
the Code of Ethics and fair business practices. Havells
started with the help of health & wellness professional, is an equal opportunity employer and employees are
for bringing different perspectives of life: Health, evaluated solely on the basis of their qualification
Happiness, work-life balance and many more for and performance. We provide equal opportunity in all
employees and their families. The series of interactive aspects of employment, including retirement, training,
virtual sessions helped employees stay focussed and
45-141
work conditions, career progression etc. that reconfirms
motivated during these unprecedented times and work our commitment that equal employment opportunity is
on mental health and wellbeing. Many other initiatives component of our growth and competitiveness. Further,
like Havells Music Studio, Lockdown Engagement Havells is committed to maintaining a workplace where
Video etc. were also promoted to increase engagement each employee’s privacy and personal dignity is
level of employees. respected and protected from offensive or threatening

behaviour including violence.
We assessed the opportunity in changed scenario, to
connect with all stakeholders through digital medium
Nirbhaya
for upskilling & learning across the group and outside. As a responsible employer, Havells has always been
In all, over 300 sessions on MS teams were conducted conscious of its duty towards prevention and control
of sexual harassment at workplace. Reckoned to be a
covering all our employees, trade partners and end
Great Place to Work® organization, is an achievement
users. Sessions included training on functional /
142-309
which puts the organization amongst its global peers. As

behavioural and technical topics in close coordination
mandated by law, Havells has in place the “Nirbhaya”
with our in-house experts from Business, CRI (R&D),
policy for women employees. An Internal Complaints
Functions and Plants. It also included knowledge Committee has also been constituted as per the policy
sharing sessions on new technology like IoT and other to provide a forum to all female personnel to lodge
advanced technical tools. complaints (if any) and seek redressal. The Committee
meets regularly to take note of useful tools, mobile
With social distancing becoming the new normal, applications, media excerpts, interactive sessions, etc.,
we introduced Work from Home (WFH) facility for that sensitize the female employees. The Committee
our employees and encourage them to come to submits an Annual Report to the Audit Committee of the
55
Board of Directors on the complaints received and action 31. Global Certifications
taken by it during the relevant financial year. During the The Company augmented its global certifications
Financial Year 2020-21, no complaint was lodged with armory from its existing bucket like BASEC, KEMA,
the Internal Complaints Committee (ICC). TIS, TÜV Rheinland and CB, for its various products to
expand its reach in international arena. The Company
28. Details pursuant to Section 197(12) of the further obtained the following certifications during the
Companies Act, 2013 year:
Details pursuant to section 197(12) of the Companies
Act, 2013 read with the Companies (Appointment and • “CB Cert. - IEC 60335-1:2010 +A1:2013 +A2:2016,
Remuneration of Managerial Personnel) Rules, 2014 IEC 60335-2-80:2015” for Fan models
forms part of this Report and are annexed herewith as • “CB Cert. - IEC 60335-2-80:2015 in conjunction
ANNEXURE - 7. with IEC 60335-1:2010,” for fan models
29. Employees Stock Option Plans • “SONCAP” for various Fans & Lighting models
The Company has in place 3 (Three) employee benefit • IEC / GSO 2115/2011 for various fans and lighting
schemes, namely, Havells Long Term Incentive Plan 2014 models
(LTIP 2014), Havells Stock Purchase Scheme 2015 (ESPS
• LED Panels & Round Highbay - UL & DLC 5.1 for
2015) and Havells Stock Purchase Scheme 2016 (ESPS
USA Market
2016). All these benefit schemes are administered by
Havells Employees Welfare Trust under the supervision • LED Lighting Fixtures – IEC 60598
of the Nomination and Remuneration Committee.
• LED Lamps – ESMA certification
Promoters, Independent Directors, Directors directly or
indirectly holding 10% or above of the equity share capital • CE & CB DEKRA Certificates on MCB 6kA
of the Company, Employees not residing in India or Non
• CE & CB UL certification 7.5kA MCB
Resident Indians (NRIs) are not eligible for the grant of
options/ issue of shares under any of the Schemes. The • CE & CB UL l certification MCB 10kA as per IEC
Company has received a certificate dated 20th May, 2021 60947-2
from the Auditors of the Company that the Schemes have
• CE & CB Dekra Certificate on RCCB
been implemented in accordance with the applicable
SEBI Guidelines and the Resolutions passed by the • CE / CB certification from UL certifications as per
shareholders dated 9th June, 2014, 4th December, 2015 IEC 61439-3
and 13th July, 2016 in respect of LTIP 2014, ESPS 2015
and ESPS 2016 respectively. The Certificates would be 32. Corporate Governance
available at the Annual General Meeting for inspection Our shareholders are at the heart of our business,
by Members. There has been no material change in any with this philosophy we have grown as a global brand
of the subsisting Schemes. Disclosures pursuant to SEBI creating shareholders value. At the core of our growth
(Share Based Employee Benefits) Regulations, 2014, in are our ethical beliefs. Your management as steward of
respect of LTIP 2014, ESPS 2015 and ESPS 2016 as at 31st governance has ensured that your Company not only
March, 2021 are available on the website of the Company contributes economically but also grows sustainably.
at https://www.havells.com/en/discover-havells/investor- All business decisions are taken in adherence of the
relation/disclosures.html spirit of governance as it ensures that the core of our
business built over years is kept intact. The virtues of
30. Credit Ratings governance generate the much-needed trust of our
CARE Ratings stakeholders. The Board reassesses its governance
CARE has yet again assigned a CARE AAA [Triple processes and controls to meet the stakeholders’
A] rating to the long-term facilities of your Company expectations. The strategically scheduled meetings
during the current Financial Year. This rating is of directors and it committees foster truly frank
applicable to facilities having a tenure of more than discussions and informed decisions. Creating harmony
one year. Instruments with this rating are considered amongst the modern era and the core principles of the
to have the highest degree of safety regarding timely founder Chairman, Havells has portrayed to the world
servicing of financial obligations. CARE has also how good corporate governance can lead to sustained
reaffirmed the CARE A1+ [A One Plus] rating assigned growth.
to the short-term facilities of your Company. This rating
is applicable to facilities having a tenure upto one year. Parameters of Statutory compliances evidencing the
Instruments with this rating are considered to have very standards expected from a listed entity have been
strong degree of safety regarding timely payment of duly observed and a Report on Corporate Governance
financial obligations. as well as the Certificate from Statutory Auditors
56
confirming compliance with the requirements of SEBI online and in field, following stringent COVID-19
Introduction 01-13
(Listing Obligations and Disclosure Requirements) protocols. Even though our company is not being
Regulations, 2015 forms part of the Integrated Annual categorized as part of the major polluting industry, we
Report. are still watchful of impact on the environment due to
our operations. Contributing proactively to Nation’s
Further, the Management Discussion and Analysis ambition to achieve the United Nations sustainable
Report and CEO/ CFO Certificate as prescribed under development goals (UN-SDGs), we have mapped our
SEBI (Listing Obligations and Disclosure Requirements) activities accordingly and have taken various steps in
Regulations, 2015 are also presented in separate this direction. In pursuit to reduce our resource footprint,
sections forming part of the Integrated Annual Report. some of the major initiatives includes, planting over
11 lakhs tree saplings in the last 3 years, harnessing
33. Environment, Health and Safety renewable solar power with a total installed capacity of
The impact of the COVID-19 pandemic is unprecedented, 5.6 MW, sustaining on our status of net water positivity,
unique and perhaps unparalleled in recent human 100% sites installed with rainwater harvesting systems
Integrated Report
history. During the year under review, Havells has etc. With our efforts we embrace the power of resilient
emerged stronger and more resilient in the wake of the strategic framework of our company during these tough
ongoing pandemic. For us, Environment, Health and pandemic times, which helped us to grow sustainably.
Safety (EHS) is an integral part of our larger ambit of
Sustainability umbrella. Our initiatives in response to 34. Research and Development
Covid-19 have been detailed in ANNEXURE - 8. Over the last few years, we embarked upon a journey
of strengthening our R&D – an initiative driven by
All of our manufacturing facilities are certified for our vision to grow Havells into a technology and
adopting best management systems such as ISO
14-44
engineering led organization bringing customer-centric
45001/OHSAS 18001 (Occupational Health and value propositions for our end consumers. We took this
Safety) and ISO 14001 (Environment Management strategic call to complement our strengths in products
system). This year also we sustained our status of distribution and indigenized world-class manufacturing
Zero occupational fatality following best health and
Statutory Reports
by bringing R&D within the same purview of our
safety measures. Adhering to the COVID-19 prevention enhanced focus.
directions, we maintained the highest level of health
and safety protocols at our all our establishments and As a rapidly growing Fast-Moving Electrical Goods
working profiles. Our approach at workplaces was (FMEG) Company we operate in an extremely
strategically formulated and implemented, considering diverse product portfolio – ranging from seemingly
the nature of working site, employee strength, floor simple products like capacitors to lighting solutions
density and other relevant attributes, through the robust to electrical consumer durables, to large white
COVID-19 Standard Operating Procedure (SOP). goods to complex low-voltage switchgear products.
45-141
Detailed directions through SOPs were systematically The complexity posed by this diverse portfolio gets
issued and communicated to the workforce via work- further compounded by rapid changes in consumer
email, employee intranet, displays at factory/office sites, preferences/aspirations and technological advances
online trainings, etc. Further, we are also reimbursing (such as IoT, Data Analytics, AI, Machine Learning). Financial Statements
the COVID-19 Vaccination costs to our both permanent However, our emphasis has been on addressing this
as well as contractual employees. complexity using technology as a common denominator
across our products – leading to democratization of
Though the manufacturing activity at our different
technology making it amenable to our vast consumer
locations were impacted during the pandemic over the
base. Despite the adversities that came along with
entire year, but we sustained best environmental and
COVID we stayed focused on our vision of being
health & safety standards and norms that are derived
a company recognised as an early adopter of new
out of our Integrated Management System- Quality
technologies with agility to launch innovative products
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Energy Environment Health and Safety (IMS-QEEHS)

addressing explicit and latent needs of our customers.
Policy. Continuing our adherence to implement
industry best sustainable practices, once again we
With this vision, we have remained focused on our
have secured our position in the globally recognized
mission - investing in strengthening our in-house R&D
S&P global Dow Jones Sustainability Index (DJSI)
capabilities which forms the foundation for our future.
2020, additionally acquiring entry in the reputed S&P
Our emphasis has always been on driving customer
global yearbook.
centricity with focus on three core pillars:
Our trainings and events on various aspects of health, 1. end-to-end (concept to end-of-useful life)
safety and environmental awareness were conducted responsibility for our products;
57
2. self-reliance for all critical technologies of our 1. The product vertical teams work in close
products; and collaboration with business marketing teams on
near term innovative products, and
3. technologically differentiated innovative products.
2. The COEs working on mid-term to long-term
During Financial Year 2020-21, our R&D spend stood at focused innovation ideas that we believe have the
96cr – marginally lower than the previous year – partly potential of being game changers. These teams
due to the OPEX savings arising during COVID. During have also been working on common platforms
FY 2019-20, we also had one-time effect of higher (such as IoT and Cloud based connected
CAPEX investments in our new R&D infrastructure products) and design methodologies (such as
build-up (E1-Noida, Customer Design Studio in HO Simulations, Design for Six Sigma, Reliability,
Noida and the innovation hub in Bangalore). Our total Materials and Manufacturing processes etc) that
R&D spend stood at 0.9% of total revenue and we unify our product portfolio.
continued to ramp-up our R&D infrastructure and new
Our Bengaluru Innovation centre launched in 2019-
competencies in all our R&D locations. Our target is
20 continues to drive our transformational innovation
to further intensify our efforts towards research and
strategy with clear focus on select Centres of Excellence
development and grow it towards ~2% of our revenues
(COEs) - IoT, Software, Engineering Design and Power
in coming years. This will clearly stand out as one of
Electronics. These COEs are playing a pivotal role in
the highest allocations amongst our competition in the
our innovation strategy and self-reliance for critical
regional markets.
technologies while accelerating the digital journey for
our products giving an unparalleled digital experience
The Company continues to invest in world class to our customers. In a short span of less than two years,
infrastructure and test laboratories that is driving in- this centre has grown to a team of 75+ top-notch R&D
house research & development thus promoting a staff who are actively leveraging the Silicon Valley of
strong culture for open and collaborative innovation. India ecosystem by collaborating with technology
We continued to build new competencies and providers, start-ups and academia.
infrastructure across our three core locations:
The Company currently holds a broad collection of
1. Our dedicated R&D Centre located at Sector-59, intellectual property rights. This includes patent filings,
Noida, copyrights, trademarks and other forms of intellectual
2. Customer Experience and Design (CXD) Centre property rights in India and select foreign countries. The
located at our Corporate Headquarters in Noida, Company continues to strengthen its Intellectual Property
and position with new 133 IPR’s during the year (includes 119
Design Registrations and 14 Patent Filings).
3. The innovation hub (CRI-BLR) based out of
Bangalore that works primarily on advanced All around the globe, last year will stand out as a year
technologies and digital platforms. of adversities – with COVID causing major disruptions
in normal functioning of any organization. The impact
Our investments in state-of-the-art Customer was felt by R&D as well –with limited access of
Experience Design (CXD) Centre are being leveraged our lab/testing infrastructure during the duration
for directing design thinking approach into our product of complete lockdown. We were also fortunate to
development process – allowing us to co-create and have launched some of our specific initiatives over
co-innovate the products along with our multiple the past years which let our R&D activities continue
stakeholders including potential customers. While the with least impact of COVID. Our investments in
efforts of the CXD team are continuously appreciated digital tools and technologies – such as virtual
by our customers, they were also recognized by product development, software engineering, digital
external design agencies. We received the prestigious platforms, DevOps framework for remote and secure
CII Design Excellence award for Crabtree SmartHome collaborations enabled us to move many of our R&D
Automation Range. Two of our products – Edgelit development efforts to remote and safe environment
Glow Batten and Nu Bulb+ were conferred the India of individual’s homes. We stayed focused and
Design Mark for 2020. successfully delivered on our commitments to the
customers. We re-affirm our commitment to all our
Our new matrix structured organization – comprised stakeholders that R&D within Havells will be the
of product development teams as verticals and corner-stone of our future strategy – getting closer to
technology-based Centres of Excellence (COEs) as the consumer and creating a formidable entry barrier
horizontals is working out quite well. for the competition.
58
35. Transfer to Investor Education and Protection Authority, hereinabove mentioned. Concerned
Introduction 01-13
Fund Shareholders may still claim the shares or
(A) Transfer of Unpaid Dividend apply for refund to the IEPF Authority in Web
Form No. IEPF-5 available on www.iepf.gov.in.
Pursuant to the provisions of Section 124(5) of
The voting rights on shares transferred to the
the Companies Act, 2013, your Company has
IEPF Authority shall remain frozen until the
transferred ` 13,57,193 during the year to the
rightful owner claims the shares. The shares held
Investor Education and Protection Fund. Further,
in such DEMAT account shall not be transferred
after the close of Financial Year, the Company
or dealt with in any manner whatsoever except
has also transferred ` 8,96,365 in the Investor
for the purpose of transferring the shares back
Education and Protection Fund.
to the claimant as and when he approaches
These amounts were lying unclaimed/ unpaid with the Authority. All benefits except rights issue
the Company for a period of 7 (Seven) years after accruing on such shares e.g. bonus shares,
declaration of Final Dividend for FY ended 2012-13 split, consolidation, fraction shares etc., shall
Integrated Report
and Interim Dividend for FY ended 2013-14. also be credited to such DEMAT account. Any
further dividend received on such shares shall
(B) Transfer of Shares underlying Unpaid be credited to the IEPF Fund.
Dividend
36. Shares lying in unclaimed suspense account
During the Financial Year, the Share Allotment and
in electronic mode
Transfer Committee, in its meeting held on 28th
August, 2020, transmitted 28,593 Equity Shares As at 31st March, 2021, total 2,10,100 Shares
of the Company into the DEMAT Account of the were lying in the Unclaimed Suspense Account
IEPF Authority held with NSDL (DPID/ Client ID in dematerialised form in the Havells India Limited
14-44
IN300708/10656671) in terms of the provisions of Unclaimed Suspense A/c held with IDBI Bank
Section 124(6) of the Companies Act, 2013 and Limited (DP). The voting rights on the said shares
the IEPF Authority (Accounting, Audit, Transfer shall remain frozen till the rightful owner of such
shares claims the shares. The rightful owner can
Statutory Reports
and Refund) Rules, 2016, as amended from time
to time. These Equity Shares were the Shares of still claim his/ her shares from the suspense account
such 14 Shareholders whose unclaimed/ unpaid after complying with the procedure laid down in the
dividend pertaining to Financial Year 2012-13 statute regarding the same. The Company had so
had been transferred into IEPF and who had not far transferred 2,27,100 (Two Lakhs Twenty Seven
encashed their dividends for 7 (Seven) years. Thousand and One Hundred Only) Equity Shares
into Unclaimed Share Suspense Account in terms of
The Share Allotment and Transfer Committee Regulation 39(4) read with Schedule VI to the SEBI
in its Meeting held on 28th April, 2021, also (Listing Obligations and Disclosure Requirements)
45-141
transmitted 13,079 Equity shares on account Regulations, 2015. Subsequently, 17,000 Shares of
of Un-claimed Dividend for FY 2013-14 ` 1/- each were transferred to the rightful owners
(Interim) into the DEMAT Account of the IEPF as approved by the Share Transfer and Allotment
Authority. These Equity Shares were the Shares Committee. Further, the unpaid dividend for the last 7
of such 7 Shareholders whose unclaimed/ unpaid (Seven) years was also paid to the said shareholders.
dividend pertaining to Financial Year 2013-14

(Interim) had been transferred into the IEPF and 37. Listing of shares
who had not encashed their dividends for 7 years. The equity shares of the Company are listed on the
National Stock Exchange of India Ltd. (NSE) and BSE
Individual reminders were sent to concerned
Limited (BSE). The listing fee for the year 2021-22
Shareholders advising them to encash their
has already been paid to the credit of both the Stock
dividend and the complete List of such
Exchanges
Shareholders whose Shares were due for transfer
142-309
to the IEPF was also placed in the Unclaimed

38.
Conservation of Energy, Technology
Dividend section of the Investor Relations
Absorption and Foreign Exchange Earnings
Section on the website of the Company at
and Outgo
https://www.havells.com/en/discover-havells/
investor-relation/unclaimed-dividend.html The information pertaining to conservation of energy,
technology absorption, foreign exchange earnings
With the transfer of abovesaid shares into IEPF, and outgo as required under Section 134(3)(m) of
a total of 2,18,258 Shares of the Company (after the Companies Act, 2013 read with Rule 8(3) of the
taking into account the shares claimed back out Companies (Accounts) Rules, 2014 is furnished in
of IEPF) were lying in the Demat A/c of the IEPF ANNEXURE - 9 and forms part of this Report.
59
39. Business Responsibility Report (BRR) We have also provided the requisite mapping of
Continuing the endeavour of our approach to principles between the Sustainability Report and
report aspects of corporate responsibility, we are the Business Responsibility Report as prescribed
publishing 5th Business Responsibility Report (BRR) by SEBI. The same is also available on the website
of the company for the year 2020-21, that forms part www.havells.com.
of this Integrated Annual Report as required under
Regulation 34(2(f) of the SEBI (Listing Obligations 40. Acknowledgements
and Disclosure Requirements) Regulations, 2015. The The continued co-operation and support of its loyal
BRR for Financial Year 2020-21 is aligned with the customers has enabled the Company to make every
nine principles of the National Voluntary Guidelines effort in understanding their unique needs and deliver
on Social, Environmental & Economic Responsibilities maximum customer satisfaction. Our employees at all
of Business (NVG-SEE) notified by the Ministry of levels, have been core to our existence and their hard
Corporate Affairs, Government of India. Havells work, co-operation and support is helping us as a
strongly believes that sustainable and inclusive growth company face all challenges. Our vendors, who form
is only possible by using the levers of environmental a part of our global footprint reinforce our presence
and social responsibility based on strong governance across the globe and relentlessly push forward in
fundamentals. While setting aspirational targets and
establishing the Havells brand. Our Company is
improving economic performance to ensure business
always grateful for their efforts. The flagbearers of fair
sustainability and rapid growth, the company has
play and regulations, which includes the regulatory
been resilient to the impacts of pandemic fluctuations
authorities, the esteemed league of bankers, financial
to a larger degree. We are committed to leverage
institutions, rating agencies, stock exchanges and
our focus on indigenous manufacturing to build
depositories, auditors, legal advisors, consultants
competitive advantage in achieving high shareholder
returns through customer centricity, innovation, good and other stakeholders have all played a vital role
governance and inclusive human development while in instilling transparency and good governance. The
being sensitive to the environment. Company deeply acknowledges their support and
guidance.
The report is a testimony to our continuous efforts
towards embracing and implementing balanced For and on behalf of
approach to ESG parameters in our business operations Board of Directors of Havells India Limited
that are communicated to the stakeholders in addition
to our annually published voluntary sustainability report
based on globally accepted Global Reporting Initiative Anil Rai Gupta
(GRI) standards that is available at www.havells.com. Delhi, May 20, 2021 Chairman and Managing Director
60
ANNEXURE – 1
Introduction 01-13
NOMINATION AND REMUNERATION POLICY OF
DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEE
Principle and Rationale Guiding Principles

Section 178 of the Companies Act, 2013 and the provisions In the formulation of this Policy, the Nomination and
of SEBI (Listing Obligations and Disclosure Requirements) Remuneration Committee has also endeavored to ensure
Regulations, 2015 require the Nomination and Remuneration the guiding principles as prescribed u/s 178(4) of the
Committee of the Board of Directors of every listed entity, Companies Act, 2013 and the section on Responsibilities
among other classes of companies, to of Board under SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, summarized hereunder:
Integrated Report
- formulate the criteria for determining qualifications,
positive attributes and independence of a director a) the level and composition of remuneration is reasonable
and recommend to the Board a policy, relating to and sufficient to attract, retain and motivate human
the remuneration for the directors, key managerial resource including directors of the quality required to
personnel and other employees.
run the company successfully;
- identify persons who are qualified to become directors

b) relationship of remuneration to performance is clear
and who may be appointed in senior management in
and meets appropriate performance benchmarks;
accordance with the criteria laid down, recommend to
14-44
the Board their appointment and removal.
c) remuneration to directors, key managerial personnel
- carry out evaluation of every director’s performance. and senior management reflecting short and long-term
performance objectives appropriate to the working of
Statutory Reports
- formulate the criteria for evaluation of Independent the company and its goals;
Directors and the Board.
d) facilitating effective shareholder participation in
Accordingly, in adherence to the abovesaid requirements key Corporate Governance decisions such as the
and in line with the Company philosophy towards nurturing nomination and election of board members;
its human resources, the Nomination and Remuneration
Committee of the Board of Directors of Havells India Limited e) aligning key executive and board remuneration with
hereinbelow recommends to the Board of Directors for its the longer term interests of the company and its
adoption the Nomination and Remuneration Policy for the shareholders;
45-141
directors, key managerial personnel and other employees of
the Company as set out below: f) ensuring a transparent board nomination process
with the diversity of thought, experience, knowledge,
Company Philosophy perspective and gender in the Board. Financial Statements
Havells is an equal opportunities employer. The organization

does not discriminate on grounds of age, gender, colour, Nomination of the Directors
race, ethnicity, language, caste, creed, economic or social The Nomination and Remuneration Committee of the Board
status or disability. The global workforce spread across of Directors is dedicated to ensuring the continuance of a
continents, which has over the years transformed Havells dynamic and forward-thinking Board and recommend to the
into a global organisation forms the backbone of the entity.
Board qualified candidates for directorship.
Pay revisions and other benefits are designed in such a
way to compensate good performance of the employees
Before recommending a nominee’s candidature to the Board
142-309
of the Company and motivate them to do better in future.

for being appointed as a Director, the following criteria set
Employee recognition schemes in the form of ESOPs/
out may be applied as guidelines in considering potential
ESPS have also been introduced as successful tools in
nominees to the Board of Directors.
acknowledging their contribution and making them partners
in the wealth created by Havells. The endeavour of the
organization is to acknowledge the contributions of its
General Criteria
directors, key managerial personnel and other employees The background and qualifications of the Directors
with best compensation and benefits that appropriately considered as a group should provide a significant breadth
reward performance in line with the regulatory and industry of experience, knowledge and abilities to assist the Board in
best practices. fulfilling its responsibilities.
61
- Directors should be selected so that the Board of - He/ she is committed to superior corporate
Directors should remain as a diverse body, with performance, consistently striving to go beyond the
diversity reflecting gender, ethnic background, legal and/ or regulatory governance requirements
country of citizenship and professional to enhance, not just protect, shareholder value.
experience. Because a mix of viewpoints and
ideas enhances the Board’s ability to function - Nominee contributes to effective governance
effectively, the Committee shall consider the through superior, constructive relationships with
diversity of the existing Board when considering the Executive Directorate and management.
potential nominees, so that the Board maintains
a body of directors from diverse professional and Remuneration of the Directors
personal backgrounds. The Company strives to provide fair compensation to
directors, taking into consideration industry benchmarks,
- Potential nominees shall not be discriminated Company’s performance vis-à-vis the industry,
against on the basis of race, religion, national origin, responsibilities shouldered, performance/ track record,
sex, disability, or any other basis prohibited by law. macroeconomic review on remuneration packages of heads
of other organizations.
- Any nominee should be free of any conflict of
interest which would violate any applicable law or The remuneration payable to the directors of the company,
regulation or interfere with the performance of the shall at all times be determined, in accordance with the
responsibilities of a director. provisions of the Companies Act, 2013
- Commitment of the nominee to understanding Appointment and Remuneration of Managing

the Company and its industry, embracing the Director and Whole-time Director
organization’s values to help shape its vision, The terms and conditions of appointment and remuneration
mission and strategic direction including oversight payable to a Managing Director and Whole-time Director(s)
of risk management and internal control. shall be recommended by the Nomination and Remuneration
Committee to the Board for its approval which shall be
- Commitment of the nominee to spending the time subject to approval by shareholders at the next general
necessary to function effectively as a Director, meeting of the Company and by the Central Government
including attending and participating in meetings in case such appointment is at variance to the conditions
of the Board and its Committees. specified in Schedule V to the Companies Act, 2013.
Approval of the Central Government is not necessary if the
Specific Criteria appointment is made in accordance with the conditions
specified in Schedule V to the Act.
- Demonstrated business acumen, experience and
ability to use sound judgment and to contribute
In terms of the provisions of Companies Act, 2013, the
to the effective oversight of the business and
Company may appoint a person as its Managing Director
financial affairs of a large, multifaceted, global
or Whole-time Director for a term not exceeding 5 (years)
organization.
at a time.
- The nominee reflects the right corporate tone The executive directors may be paid remuneration either by
and culture and excels at board-management way of a monthly payment or at a specified percentage of
relationships. the net profits of the Company or partly by one way and
partly by the other.
- Experience in strategic planning and managing
multidisciplinary responsibilities, the ability to The break-up of the pay scale, performance bonus and
navigate among diverse professional groups and quantum of perquisites including, employer’s contribution
points of view, a track record of communicating to P.F, pension scheme, medical expenses, club fees
effectively in a global environment and high etc. shall be decided and approved by the Board on the
standards of integrity and professional conduct. recommendation of the Committee and shall be within the
overall remuneration approved by the shareholders and
- Nominees understand and endeavour to balance Central Government, wherever required.
the interests of shareholders and/ or other
stakeholders and put the interests of the company While recommending the remuneration payable to a
or organization above self-interest. He/ she has Managing/ Whole-time Director, the Nomination and
demonstrated a commitment to transparency and Remuneration Committee shall, inter alia, have regard to the
disclosure. following matters:
62
• Financial and operating performance of the Company Evaluation of the Directors
Introduction 01-13
As members of the Board, the performance of the individual
• Relationship between remuneration and performance Directors as well as the performance of the entire Board and
its Committees is required to be formally evaluated annually.
• Industry/ sector trends for the remuneration paid to
executive directorate Section 178 (2) of the Companies Act, 2013 also mandates
the Nomination and Remuneration Committee to carry out
Annual Increments to the Managing/ Whole Time Director(s)
evaluation of every director’s performance.
shall be within the slabs approved by the Shareholders.
Increments shall be decided by the Nomination and In developing the methodology to be used for evaluation
Remuneration Committee at times it desires to do so but on the basis of best standards and methods meeting
preferably on an annual basis. international parameters, the Board / Committee may take
the advice of an independent professional consultant.
Insurance Premium as Part of Remuneration
Integrated Report
Where any insurance is taken by a company on behalf Nomination and Remuneration of the Key
of its managing director, whole-time director, manager, Managerial Personnel (other than Managing/
Chief Executive Officer, Chief Financial Officer or Company Whole-time Directors), Key executives and Senior
Secretary for indemnifying any of them against any liability in Management
respect of any negligence, default, misfeasance, breach of The executive management of a company is responsible for
duty or breach of trust for which they may be guilty in relation the day to day management of a company. The Companies
to the company, the premium paid on such insurance shall Act, 2013 has used the term “key managerial personnel” to
not be treated as part of the remuneration payable to any define the executive management.
such personnel.
14-44
The KMPs are the point of first contact between the
However, if such person is proved to be guilty, the premium company and its stakeholders. While the Board of Directors
paid on such insurance shall be treated as part of the are responsible for providing the oversight, it is the key
remuneration. managerial personnel and the senior management who are
Statutory Reports
responsible for not just laying down the strategies as well as
Remuneration of Independent Directors its implementation.
Independent Directors may receive remuneration by way of
• Sitting fees for participation in the Board and other The Companies Act, 2013 has for the first time recognized
meetings the concept of Key Managerial Personnel. As per section
2(51) “key managerial personnel”, in relation to a company,
• Reimbursement of expenses for participation in the means—
Board and other meetings
(i) the Chief Executive Officer or the managing director or
45-141
• Commission as approved by the Shareholders of the the manager;
Company
(ii) the whole-time director;
Independent Directors shall not be entitled to any stock (iii) the Chief Financial Officer; Financial Statements
options.
(iv) the company secretary;
Based on the recommendation of the Nomination and (v) such other officer, not more than one level below the
Remuneration Committee, the Board may decide the directors who is in whole-time employment, designated
sitting fee payable to independent directors. Provided that as key managerial personnel by the Board and
the amount of such fees shall not exceed the maximum
permissible under the Companies Act, 2013. (v) such other officer as may be prescribed.
Remuneration to Directors in other Capacity Among the KMPs, the remuneration of the CEO or the
142-309
Managing Director and the Whole-time Director(s), shall

The remuneration payable to the directors including
be governed by the Section on REMUNERATION OF THE
managing or whole-time director or manager shall be
DIRECTORS of this Policy dealing with “Remuneration of
inclusive of the remuneration payable for the services
Managing Director and Wholetime- Director”.
rendered by him in any other capacity except the following:
(a) the services rendered are of a professional nature; and Apart from the directors, the remuneration of
(b) in the opinion of the Nomination and Remuneration • All the Other KMPs such as the company secretary
Committee, the director possesses the requisite or any other officer that may be prescribed under the
qualification for the practice of the profession. statute from time to time; and
63
• “Senior Management” of the Company which here including professional experience, responsibility, job
means, the core management team comprising of complexity and local market conditions.
such members of management as determined by
the Company under Layer 1 of the System-Driven The Company considers it essential to incentivize the
Disclosures in respect of Regulation 7(2) (b) of PIT workforce to ensure adequate and reasonable compensation
Regulations, shall be determined by the Human to the staff. The Human Resources Department shall ensure
that the level of remuneration motivates and rewards high
Resources Department of the Company in consultation
performers who perform according to set expectations for
with the Managing Director and/ or the Whole-time
the individual in question.
Director Finance.
The various remuneration components, basic salary,
The remuneration determined for all the above said senior allowances, perquisites etc. may be combined to ensure an
personnel shall be in line with the Company’s philosophy to appropriate and balanced remuneration package.
provide fair compensation to key - executive officers based
on their performance and contribution to the Company and The annual increments to the remuneration paid to the
to provide incentives that attract and retain key executives, employees shall be determined based on the annual
instill a long-term commitment to the Company and develop appraisal carried out by the HoDs of various departments.
a pride and sense of Company ownership, all in a manner
consistent with shareholder interests. Decisions on Annual Increments shall be made on the basis
of this annual appraisal.
The break-up of the pay scale and quantum of perquisites
including, employer’s contribution to P.F, pension scheme, General
medical expenses, club fees etc. shall be decided by the This Policy shall apply to all future employment of Company’s
Company’s HR department. Senior Management including Key Managerial Personnel
and Board of Directors.
Decisions on Annual Increments of the Senior Personnel
shall be decided by the Human Resources Department Any or all the provisions of this Policy would be subject to the
revision/ amendment in the Companies Act, 2013, related
in consultation with the Managing Director and/ or the
rules and regulations, guidelines and the SEBI (Listing
Whole-time Director Finance of the Company.
Obligations and Disclosure Requirements) Regulations,
2015 on the subject as may be notified from time to time.
Remuneration of other Employees
Any such amendment shall automatically have the effect of
Apart from the Directors, KMPs and Senior Management, amending this Policy without the need of any approval by
the remuneration for rest of the employees is determined on the Nomination and Remuneration Committee and/ or the
the basis of the role and position of the individual employee, Board of Directors.
64
ANNEXURE - 2
Introduction 01-13
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March, 2021
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]
I. Registration and Other Details

i) CIN L31900DL1983PLC016304
Integrated Report
ii) Registration Date: 08th August, 1983
iii) Name of the Company Havells India Limited
iv) Category / Sub-Category of the Company
Category Public Company
Sub-Category Company Limited by Shares
v) Address of the Registered office and
contact details
14-44
Address of Registered Office 904, 9th Floor, Surya Kiran Building, K.G. Marg, Connaught
Place, New Delhi – 110001
Contact Telephone No.: 0120-3331000;
Statutory Reports
Fax No.: 0120-3332000
Email id: investors@havells.com
Website: www.havells.com
vi) Whether listed company Yes / No Yes
vii) Name, Address and Contact details of
Registrar and Transfer Agent, if any
Name Link Intime India Private Limited
Address Noble Heights, 1st Floor, Plot No. NH 2, LSC, C-1 Block,
45-141
Near Savitri Market, Janakpuri, New Delhi-110058
Contact Telephone No.: 011-41410592, 93, 011-49411000
Fax No. : 011-41410591;
Email id: delhi@linkintime.co.in;
Website: www.linkintime.co.in
II. Principal Business Activities of the Company

All the business activities contributing 10% or more of the total turnover of the company shall be stated:
Sl. Name and Description of main products / services NIC Code of the % to total turnover of
No. Product / service the company
142-309
1. Cable 2732 30%

2. Switchgears 2710 14%
3. Electric Consumer Durables 2750 23%
4. Lighting & Fixtures 2740 10%
5. Lloyd Consumer 2750, 2640 16%
65
III. Particulars of Holding, Subsidiary and Associate Companies

Sl. Name and Address of the Company CIN/GLN Holding/ % of Applicable
No. Name Address Subsidiary/ Shares Section
Associate Held
1. Havells Holdings 33, Athol Street, Douglas, Isle 00475V Subsidiary 100% Section 2(87)
Limited of Man of Companies
Act, 2013
2. Havells Guangzhou 905, North Tower, International S0102016009200 (1-1) Subsidiary 100% Section 2(87)
International Limited Commerce Place, 1168 Xin of Companies
Gang East Road, 1168 Xin Gang Act, 2013
East Road, Guangzhou- 510330,
People’s Republic of China
3. Jiangsu Havells 1, Shanghai Road, Economic, 320900400022938 Joint Venture 50%
Sylvania Lighting Co. Development Zone of Jianhu,
Ltd. County, Yan Cheng City,
Jiangsu, Province
IV. Share Holding Pattern (Equity Share Capital Breakup as Percentage of Total Equity)
1) Category-wise Share Holding
Category of Shareholder No. of Shares held at the beginning of the Year No. of Shares held at the end of the Year %
Demat Physical Total % of Total Demat Physical Total % of Total change
Shares Shares during
the year
A. Promoters
(1) Indian
(a) Individuals / HUF 0 0 0 0.00 0 0 0 0.00 0.00
(b) Central Government 0 0 0 0.00 0 0 0 0.00 0.00
(c) State Government(s) 0 0 0 0.00 0 0 0 0.00 0.00
(d) Bodies Corporate 25,86,00,540 0 25,86,00,540 41.32 25,86,00,540 0 25,86,00,540 41.31 -0.01
(e) Financial Institiutions/Banks 0 0 0 0.00 0 0 0 0.00 0.00
(f) Any Other - Trust 11,38,57,380 0 11,38,57,380 18.19 11,38,57,380 0 11,38,57,380 18.19 -0.01
Sub-Total (A)(1) 37,24,57,920 0 37,24,57,920 59.52 37,24,57,920 0 37,24,57,920 59.50 -0.02
(2) Foreign
(a) NRIs- Individuals 0 0 0 0.00 0 0 0 0.00 0.00
(b) Other-Individuals 0 0 0 0.00 0 0 0 0.00 0.00
(c) Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00
(d) Banks/FI 0 0 0 0.00 0 0 0 0.00 0.00
(e) Any Other 0 0 0 0.00 0 0 0 0.00 0.00
Sub-Total (A)(2) 0 0 0 0.00 0 0 0 0.00 0.00
Total Shareholding of Prom. & 37,24,57,920 0 37,24,57,920 59.52 37,24,57,920 0 37,24,57,920 59.50 -0.02
Prom. Grp. (A)=(A)(1)+(A)(2)
B. Public Shareholding
(1) Institutions
(a) Mutual Funds 1,99,23,911 0 1,99,23,911 3.18 140,07,989 0 1,40,07,989 2.24 -0.95
(b) Financial Institiutions/Banks 2,59,91,439 0 2,59,91,439 4.15 3,10,512 0 3,10,512 0.05 -4.10
(c) Central Government 14,60,996 0 14,60,996 0.23 11,98,496 0 11,98,496 0.19 -0.04
(d) State Government(s) 0 0 0 0.00 0 0 0 0.00 0.00
(e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00
(f) Insurance Companies 41,86,955 0 41,86,955 0.67 3,41,43,933 0 3,41,43,933 5.45 4.79
(g) FPIs/FFIs 14,41,59,365 0 14,41,59,365 23.04 15,59,39,124 0 15,59,39,124 24.91 1.87
(h) Foreign Venture Capital 0 0 0 0.00 0 0 0 0.00 0.00
Investors
(i) Others
(a)
Alternate Investment 16,63,544 0 16,63,544 0.27 9,22,497 0 9,22,497 0.15 -0.12
Funds
66
Category of Shareholder No. of Shares held at the beginning of the Year No. of Shares held at the end of the Year %
Introduction 01-13
Demat Physical Total % of Total Demat Physical Total % of Total change
Shares Shares during
the year
Sub-Total (B)(1) 19,73,86,210 0 19,73,86,210 31.54 20,65,22,551 0 20,65,22,551 32.99 1.45
(2) Non-institutions
(a) Bodies Corporate
1) Indian 59,94,761 0 59,94,761 0.96 34,72,034 0 34,72,034 0.55 -0.40
2) Overseas 0 0 0 0.00 0 0 0 0.00 0.00
(b) Individual
(i) Indiv. hldg. nom. shr. cap.<= 9,62,332 3,43,70,315 3,53,32,647 5.65 2,90,48,430 8,32,327 2,98,80,757 4.77 -0.87
` 1 Lakh
(ii) Indiv. hldg. nom. shr. cap.> 57,57,431 0 57,57,431 0.92 56,61,623 0 56,61,623 0.90 -0.02
` 1 Lakh
Integrated Report
(c) Others
(1) Trusts 38,55,281 0 38,55,281 0.62 39,08,045 0 39,08,045 0.62 0.01
(2) Non Resident Indians 27,25,812 4,64,000 31,89,812 0.51 22,06,791 4,40,000 26,46,791 0.42 -0.09
(3) Clearing Members 7,13,909 0 7,13,909 0.11 4,43,990 0 4,43,990 0.07 -0.04
(4) Hindu Undivided Families 7,11,845 0 7,11,845 0.11 5,96,016 8,000 6,04,016 0.10 -0.02
(5) IEPF 1,92,918 0 1,92,918 0.03 2,05,179 0 2,05,179 0.03 0.00
(6) Unclaimed Shares 2,10,100 0 2,10,100 0.03 2,10,100 0 2,10,100 0.03 0.00
Sub-Total (B)(2) 2,11,24,389 3,48,34,315 5,59,58,704 8.94 4,57,52,208 12,80,327 4,70,32,535 7.51 -1.43
14-44
Total Public Shareholding(B)=(B) 21,85,10,599 3,48,34,315 25,33,44,914 40.48 25,22,74,759 12,80,327 25,35,55,086 40.50 0.02
(1)+(B)(2)
C. Shares held by Custodian for 0 0 0 0.00 0 0 0 0.00 0.00
GDR & ADR
Statutory Reports
GRAND TOTAL (A+B+C) 59,09,68,519 3,48,34,315 62,58,02,834 100.00 62,47,32,679 1280327 62,60,13,006 100.00 0.00
(ii) Shareholding of Promoters

Sl. Shareholder’s Name Shareholding at the beginning of the Year Shareholding at the end of the Year
No. No. of % of total % of Shares No. of % of total % of Shares % Change
Shares Shares Pledged/ Shares Shares Pledged/ in shares
of the encumbered to of the encumbered to holding
Company total shares of the Company total sharesof during the
Company the Company Year
45-141
1. Shri Anil Rai Gupta 0 0.00 N.A 0 0.00 N.A 0.000
2. Shri Surjit Kumar Gupta 0 0.00 N.A 0 0.00 N.A 0.000
3. Shri Ameet Kumar Gupta 0 0.00 N.A 0 0.00 N.A 0.000
4. Smt. Vinod Gupta 0 0.00 N.A 0 0.00 N.A 0.000 Financial Statements
5. Smt. Santosh Gupta 0 0.00 N.A 0 0.00 N.A 0.000

6. Smt. Sangeeta Rai Gupta 0 0.00 N.A 0 0.00 N.A 0.000
7. Smt. Shalini Gupta 0 0.00 N.A 0 0.00 N.A 0.000
8. Shri Abhinav Rai Gupta 0 0.00 N.A 0 0.00 N.A 0.000
9. Shri Anil Rai Gupta (as Managing 7,74,25,200 12.37 N.A 7,74,25,200 12.37 N.A -0.004
Trustee of ARG family Trust)
10. Shri Surjit Kumar Gupta (as Trustee of 3,64,32,180 5.82 N.A 3,64,32,180 5.82 N.A. -0.002
SKG family Trust)
142-309
11. Qrg Investments and Holdings Limited 6,87,41,660 10.98 N.A 6,87,41,660 10.98 N.A -0.004
12. QRG Enterprises Limited 18,98,58,880 30.34 N.A 18,98,58,880 30.33 N.A -0.010
Total 37,24,57,920 59.52 37,24,57,920 59.50 -0.020
The change in % is a reflection of and purely on account of the increase in paid-up capital due to allotment made to Eligible Employees of the Company under
the Havells Employees Long Term Incentive Plan 2014 (LTIP Plan), Havells Employees Stock Purchase Scheme 2015 (ESPS) and Havells Employees Stock
Purchase Scheme 2016.
(iii) Change in promoters’ shareholding

There was no Change in the Promoters’ Shareholding during the financial year 2020-21.
67
(iv) Shareholding Pattern of Top ten Shareholders (other than Directors, Promoters and Holders of
GDRs and ADRs.)
Sl. For Each of the TOP 10 Shareholders Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of
company the company
1. NALANDA INDIA EQUITY FUND LIMITED
At the beginning of the year 3,30,44,930 5.28
Sale(-)/Purchase(+) during the Year As on No. of
Benpos shares
Date
N.A. 0
At the End of the Year (or on the date of Separation, if 3,30,44,930 5.28
Separated during the Year)
2. LIFE INSURANCE CORPORATION OF INDIA

Benpos shares
Date
03.04.2020 50,000 1,69,44,840 2.71
10.04.2020 1,42,942 1,70,87,782 2.73
17.04.2020 8,92,790 1,79,80,572 2.87
24.04.2020 6,47,000 1,86,27,572 2.98
01.05.2020 5,49,040 1,91,76,612 3.06
08.05.2020 3,95,686 1,95,72,298 3.13
15.05.2020 9,03,098 2,04,75,396 3.27
22.05.2020 3,55,684 2,08,31,080 3.33
19.06.2020 5,31,432 2,13,62,512 3.41
26.06.2020 14,83,163 2,28,45,675 3.65
30.06.2020 1,03,005 2,29,48,680 3.67
03.07.2020 6,16,848 2,35,65,528 3.76
10.07.2020 34,480 2,36,00,008 3.77
17.07.2020 2,97,438 2,38,97,446 3.82
24.07.2020 9,89,431 2,48,86,877 3.98
31.07.2020 14,96,367 2,63,83,244 4.21
07.08.2020 12,16,085 2,75,99,329 4.41
14.08.2020 2,72,154 2,78,71,483 4.45
21.08.2020 2,11,826 2,80,83,309 4.49
20.11.2020 -9,90,499 2,70,92,810 4.33
27.11.2020 -8,30,774 2,62,62,036 4.20
04.12.2020 -12,54,875 2,50,07,161 3.99
11.12.2020 -8,49,325 2,41,57,836 3.86
18.12.2020 -57,914 2,40,99,922 3.85
19.02.2021 -2,20,817 2,38,79,105 3.81
26.02.2021 -4,12,389 2,34,66,716 3.75
05.03.2021 -10,14,785 2,24,51,931 3.59
12.03.2021 -8,07,676 2,16,44,255 3.46
19.03.2021 -7,56,987 2,08,87,268 3.34
31.03.2021 -37,388 2,08,49,880 3.33
3. GOVERNMENT PENSION FUND GLOBAL

Benpos shares
Date
15.05.2020 -92,000 1,20,76,461 1.93
68
Introduction 01-13
company the company
10.07.2020 -85,000 1,19,91,461 1.92
16.10.2020 1,55,000 1,21,46,461 1.94
30.10.2020 1,55,140 1,23,01,601 1.97
27.11.2020 -1,34,877 1,21,66,724 1.94
11.12.2020 -1,77,741 1,19,88,983 1.92
05.02.2021 -1,20,000 1,20,04,413 1.92
26.03.2021 1,35,430
Integrated Report
4. SMALLCAP WORLD FUND, INC
At the beginning of the year 63,64,000 1.02
Benpos shares
Date
16.04.2020 3,15,000 66,79,000 1.07
24.04.2020 1,44,478 68,23,478 1.09
28.08.2020 7,05,522 75,29,000 1.20
18.09.2020 19,50,444 94,79,444 1.51
14-44
25.09.2020 6,56,711 1,01,36,155 1.62
09.10.2020 8,74,000 1,10,10,155 1.76
Statutory Reports
5. LIFE INSURANCE CORPORATION OF INDIA P &
GS FUND
Benpos shares
Date
03.04.2020 1,66,000 64,70,475 1.03
10.04.2020 62,000 65,32,475 1.04
45-141
17.04.2020 50,283 65,82,758 1.05
24.04.2020 1,96,858 67,79,616 1.08
01.05.2020 4,76,000 72,55,616 1.16
08.05.2020 2,74,818 75,30,434 1.20 Financial Statements
15.05.2020 8,21,665 83,52,099 1.33
22.05.2020 2,27,517 85,79,616 1.37
19.06.2020 1,33,000 87,12,616 1.39
26.06.2020 4,30,948 91,43,564 1.46
30.06.2020 49,548 91,93,112 1.47
03.07.2020 1,68,599 93,61,711 1.50
17.07.2020 1,28,000 94,89,711 1.52
24.07.2020 2,68,350 97,58,061 1.56
142-309
31.07.2020 2,78,650 1,00,36,711 1.60

07.08.2020 75,000 1,01,11,711 1.62
14.08.2020 2,09,608 1,03,21,319 1.65
21.08.2020 3,17,197 1,06,38,516 1.70
11.09.2020 2,00,000 1,08,38,516 1.73
18.09.2020 2,91,618 1,11,30,134 1.78
25.09.2020 1,58,618 1,12,88,752 1.80
30.09.2020 2,25,000 1,15,13,752 1.84
06.11.2020 -3,13,600 1,12,00,152 1.79
69
company the company
13.11.2020 -5,02,550 1,06,97,602 1.71
20.11.2020 -4,08,389 1,02,89,213 1.64
27.11.2020 -1,74,422 1,01,14,791 1.62
04.12.2020 -37,701 1,00,77,090 1.61
11.12.2020 -25,000 1,00,52,090 1.61
18.12.2020 -1,90,000 98,62,090 1.58
25.12.2020 -1,45,000 97,17,090 1.55
31.12.2020 -62,844 96,54,246 1.54
01.01.2021 -22,156 96,32,090 1.54
08.01.2021 -1,70,000 94,62,090 1.51
15.01.2021 -64,463 93,97,627 1.50
22.01.2021 -537 93,97,090 1.50
29.01.2021 -50,000 93,47,090 1.49
05.02.2021 -77,500 92,69,590 1.48
12.02.2021 -22,500 92,47,090 1.48
19.02.2021 -35,000 92,12,090 1.47
At the End of the Year (or on the date of Separation, if 92,12,090 1.47
6. STEADVIEW CAPITAL MAURITIUS LIMITED

Benpos shares
Date
17.04.2020 -8,65,000 44,08,488 0.70
24.04.2020 -16,35,000 27,73,488 0.44
01.05.2020 -3,73,488 24,00,000 0.38
08.05.2020 -13,61,320 10,38,680 0.17
15.05.2020 -10,38,680 0 0.00
At the End of the Year (or on the date of Separation, if 0 0.00
7. MIRAE ASSET LARGE CAP FUND

Benpos shares
Date
26.06.2020 -2,72,838 45,11,839 0.72
31.07.2020 -2,20,000 42,91,839 0.69
07.08.2020 -7,52,059 35,39,780 0.57
14.08.2020 -67,412 34,72,368 0.55
30.09.2020 -2,08,094 32,64,274 0.52
23.10.2020 -1,28,000 31,36,274 0.50
30.10.2020 -1,38,560 29,97,714 0.48
06.11.2020 -5,08,000 24,89,714 0.40
25.12.2020 -23,425 24,66,289 0.39
05.02.2021 -2,00,000 22,66,289 0.36
05.03.2021 -1,10,000 21,56,289 0.34
70
Introduction 01-13
company the company
8. VANGUARD TOTAL INTERNATIONAL STOCK INDEX
FUND
Benpos shares )
Date
24.04.2020 -1,07,604 42,75,869 0.68
12.06.2020 -5,53,45 42,20,524 0.67
21.08.2020 -9,587 42,10,937 0.67
Integrated Report
04.09.2020 -95,958 41,14,979 0.66
30.09.2020 -1,03,106 40,11,873 0.64
16.10.2020 -95,652 39,16,221 0.63
30.10.2020 -93,936 38,22,285 0.61
13.11.2020 -92,132 37,30,153 0.60
04.12.2020 -89,147 36,41,006 0.58
15.01.2021 -78,373 35,62,633 0.57
29.01.2021 -81,989 34,80,644 0.56
14-44
05.02.2021 -88,740 33,91,904 0.54
05.03.2021 -1,65,233 32,26,671 0.52
12.03.2021 -28,892 31,97,779 0.51
Statutory Reports
9. GOVERNMENT OF SINGAPORE
Benpos shares )
Date
10.04.2020 11,867 43,50,096 0.70
45-141
17.04.2020 -78,248 42,71,848 0.68
08.05.2020 -2,615 42,69,233 0.68
15.05.2020 84,613 43,53,846 0.70 Financial Statements
29.05.2020 69,292 44,23,138 0.71
05.06.2020 3,96,048 48,19,186 0.77
12.06.2020 32,897 48,52,083 0.78
19.06.2020 -2,796 48,49,287 0.77
03.07.2020 8,112 48,57,399 0.78
10.07.2020 5,210 48,62,609 0.78
17.07.2020 -3,857 48,58,752 0.78
142-309
24.07.2020 -678 48,58,074 0.78

31.07.2020 -62,191 47,95,883 0.77
07.08.2020 -11,160 47,84,723 0.76
14.08.2020 -2,304 47,82,419 0.76
21.08.2020 11,344 47,93,763 0.77
04.09.2020 -6,60,565 41,33,198 0.66
11.09.2020 -1,20,706 40,12,492 0.64
18.09.2020 -1,388 40,11,104 0.64
71
company the company
02.10.2020 -16,916 39,94,188 0.64
09.10.2020 -6,80,193 33,13,995 0.53
16.10.2020 -1,49,002 31,64,993 0.51
23.10.2020 14,117 31,79,110 0.51
30.10.2020 -1,02,734 30,76,376 0.49
06.11.2020 -32,167 30,44,209 0.49
13.11.2020 1,60,622 32,04,831 0.51
27.11.2020 -1,51,139 30,53,692 0.49
04.12.2020 -7,66,849 22,86,843 0.37
11.12.2020 35,574 23,22,417 0.37
18.12.2020 332 23,22,749 0.37
08.01.2021 46,928 23,69,677 0.38
15.01.2021 33,510 24,03,187 0.38
22.01.2021 -5,328 23,97,859 0.38
29.01.2021 -337 23,97,522 0.38
05.02.2021 -3,16,695 20,80,827 0.33
12.02.2021 -5,136 20,75,691 0.33
05.03.2021 -5,89,430 14,86,261 0.24
12.03.2021 25,339 15,11,600 0.24
19.03.2021 -4,832 15,06,768 0.24
26.03.2021 -2,786 15,03,982 0.24
10. CREDIT SUISSE (SINGAPORE) LIMITED - ODI

Benpos shares
Date
17.04.2020 -180 40,00,000 0.64
25.09.2020 -1,50,674 38,49,326 0.61
30.09.2020 -2,23,085 36,26,241 0.58
27.11.2020 -1,54,879 34,71,362 0.55
04.12.2020 -84,824 33,86,538 0.54
11.12.2020 -1,86,442 32,00,096 0.51
18.12.2020 -2,35,689 29,64,407 0.47
25.12.2020 -3,17,898 26,46,509 0.42
01.01.2021 -27,780 26,18,729 0.42
08.01.2021 -2,87,300 23,31,429 0.37
15.01.2021 -5,01,510 18,29,919 0.29
22.01.2021 -1,98,450 16,31,469 0.26
29.01.2021 -1,01,005 15,30,464 0.24
05.02.2021 -85,617 14,44,847 0.23
05.03.2021 -50,867 13,93,980 0.22
72
(v) Shareholding of Directors and Key Managerial Personnel
Introduction 01-13
Sl. For Each of the Directors and KMPs Shareholding at the Cumulative Shareholding
shares of the shares of the
company company
1. Shri SURJIT KUMAR GUPTA
At the beginning of the year 0 0.00
Increase(+)/Decrease(-) during the Year As on No. of
Benpos shares
Date
N.A. 0
Integrated Report
2. Shri ANIL RAI GUPTA
Benpos shares
Date
3. Shri AMEET KUMAR GUPTA
14-44
Benpos shares
Date
Statutory Reports
4. Shri RAJESH KUMAR GUPTA

Benpos shares
Date
Shares allotted under Havells Employees Stock 22.05.2020 60,000 9,60,688 0.15
Purchase Scheme 2015
45-141
5. SMT. PRATIMA RAM Financial Statements

Benpos shares
Date
N.A. 0
142-309
6. SHRI T. V. MOHANDAS PAI

Benpos shares
Date
N.A. 0
73
company company
7. SHRI PUNEET BHATIA
Benpos shares
Date
N.A. 0
8. SHRI VELLAYAN SUBBIAH*

Benpos shares
Date
N.A. 0
* Resigned wef 22nd October, 2020
9. SHRI JALAJ ASHWIN DANI

Benpos shares
Date
N.A. 0
10. SHRI UPENDRA KUMAR SINHA

Benpos shares
Date
N.A. 0
11. SHRI VIVEK MEHRA*

Benpos shares
Date
N.A. 0
* Appointed wef 12th May, 2020
74
Introduction 01-13
company company
12. SHRI SUBHASH SHEORATAN MUNDRA*
Benpos shares
Date
N.A. 0
Integrated Report
13. SHRI BONTHA PRASADA RAO*
Benpos shares
Date
N.A. 0
14-44
14. Smt. NAMRATA KAUL*
Statutory Reports
Benpos shares
Date
N.A. 0
* Appointed wef 20th January, 2021
45-141
15. SHRI SIDDHARTHA PANDIT
At the beginning of the year 3,077 0.00
Increase(+)/Decrease(-) during the Year As on No. of Financial Statements
Benpos shares
Date
Shares allotted under Havells Employees Long Term 22.05.2020 1,575 4,652 0.00
Incentive Plan 2014
At the End of the Year (or on the date of Separation, if 4,652 0.00
16. SHRI SANJAY KUMAR GUPTA (KMP)

142-309
At the beginning of the year 3,857 0.00

Benpos shares
Date
Shares alloted under Havells Employees Long Term 22.05.2020 1,364 5,221 0.00
Incentive Plan 2014
20.11.2020 -3,000 2,221 0.00
At the End of the Year (or on the date of Separation, if 2,221 0.00
75
IV. Indebtedness
Indebtedness of the Company including interest outstanding/ accrued but not due for payment
(` in Crores)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 40.50 - - 40.50
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ii+iii) 40.50 - - 40.50
Change in Indebtedness during the financial year
• Addition 500.00 1,000.00 - 1,500.00
• Reduction 49.50 1,000.00 - 1,049.50
Net Change (450.50) - - (450.50)
Indebtedness at the end of the financial year
i) Principal Amount 491.00 - - 491.00
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 1.20 - - 1.20
Total (i+ii+iii) 492.20 - - 492.20
Note: Unsecured Loans includes short term loan and commercial papers
V. Remuneration of Directors and Key Managerial Personnel

A. Remuneration to Managing Director, Whole-time Directors and/ or Manager
Sl. Particulars of Remuneration Name of MD/ WTD/ Manager Total
No. Shri Anil Rai Shri Ameet Shri Rajesh Shri Amount (`)
Gupta Kumar Gupta Kumar Gupta Siddhartha
(Chairman (Whole-time (Whole-time Pandit
and Director) Director (Whole-time
Managing (Finance) and Director)
Director) Group CFO)
1. Gross salary
(a) Salary as per provisions contained in 5,53,50,000 2,19,00,000 5,00,50,000 91,43,464 13,64,43,464
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the 39,600 39,600 39,600 -$ 1,18,800
Income-tax Act, 1961
(c) Profits in lieu of salary u/s 17(3) of the - - - - -
Income- tax Act, 1961
2. Stock Option / ESPS (no. of shares) - - 60,000# 1575# -
3. Sweat Equity - - - - -
4. Commission
- as % of profit 18,34,91,000* 7,33,97,000** 7,33,97,000** - 33,02,85,001
- others, specify…
5. Others, (PF Contribution) 66,42,000 26,28,000 60,06,000 4,71,961 1,57,47,961
Total (A) 24,55,22,600 9,79,64,600 12,94,92,600 96,15,425 48,25,95,226
Ceiling as per the Act 10% of Net profit for all Executive Directors - Managing and Whole-time Directors
5% of Net profit to any one Managing or Whole-time Director
$
Perquisites exclude value of shares exercised during financial year 2020-21 under the Havells Employees Stock Purchase Scheme
2015 and Havells Employees Long Term Incentive Plan 2014.
#
During the year 2020-21, 60,000 Equity Shares of ` 1/- each, were allotted to Shri Rajesh Kumar Gupta under Havells Employees Stock
Purchase Scheme 2015 and 1,575 Equity Shares of ` 1/- each were allotted to Shri Siddhartha Pandit under the Havells Employees
Long Term Incentive Plan 2014 of the Company.
*As per the approved terms, entitled to receive Commission @ 1.25% of the profit before tax.
**As per the approved terms, entitled to receive Commission @ 0.50% of the profit before tax.
76
B. Remuneration to other directors
Introduction 01-13
Sl. Particulars of Name of Directors Total
no. Remuneration Amount
Shri Smt. Shri Jalaj Shri Shri B Shri Shri Vivek Smt Shri Surjit Shri Shri T. V.
(`)
Upendra Pratima Ashwin Vellayan Prasada Subhash S Mehra% Namrata Kumar Puneet Mohan-
Kumar Ram Dani Subbiah$ Rao% Mundra% (ID) Kaul^ Gupta Bhatia das Pai
Sinha (ID) (ID) (ID) (ID) (ID) (ID) (NED, (NED, (NED,
(ID) Non- Non- Non-Inde-
Indepen- Indepen- pendent)
dent) dent)
1. Independent Directors (ID)

• Fee for attending board 6,00,000 6,90,000 6,00,000 2,40,000 4,80,000 5,40,000 4,50,000 1,50,000 NA NA NA 37,50,000
committee meetings
• Commission 10,00,000 10,00,000 10,00,000 7,50,000 10,00,000 10,00,000 10,00,000 2,50,000 NA NA NA 70,00,000
Integrated Report
• Others - - - - - - - - NA NA NA -
Total (1) 16,00,000 16,90,000 16,00,000 9,90,000 14,80,000 15,40,000 14,50,000 4,00,000 NA NA NA 1,07,50,000
2. Other Non-Executive
Directors (NED)
• Fee for attending board NA NA NA NA NA NA NA NA - 3,60,000 4,20,000 7,80,000
committee meetings
• Commission NA NA NA NA NA NA NA NA - 10,00,000 10,00,000 20,00,000
• Others NA NA NA NA NA NA NA NA - - - -
14-44
Total (2) NA NA NA NA NA NA NA NA - 13,60,000 14,20,000 27,80,000
Total (B)=(1+2) 16,00,000 16,90,000 16,00,000 9,90,000 14,80,000 15,40,000 14,50,000 4,00,000 - 13,60,000 14,20,000 1,35,30,000
Total Managerial Remuneration - - - - - - - - - - - 49,61,25,226
Statutory Reports
Overall Ceiling as per the Act 1% of Net Profits of the Company for all Non-executive Directors
Resigned as Director wef 22nd October, 2020.
$
%
Appointed as Director wef 12th May, 2020.
^
Appointed as Director wef 20th January, 2021.
C. Remuneration to Key Managerial Personnel other than MD/ Manager/ WTD

Sl. Particulars of Remuneration Key Managerial Personnel Total Amount
No. CEO* Company CFO* (`)
45-141
Secretary
1. Gross salary
(a) Salary as per provisions contained in - 78,64,594 - 78,64,594
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the - - - -

(c) Profits in lieu of salary u/s 17(3) of the - - - -
2. Stock Option / ESPS (no. of shares) - 1,364# - 1,364#
3. Sweat Equity - - - -
4. Commission
142-309
- as % of profit - - - -
- others, specify… - - - -
5. Others, (PF Contribution) - 4,08,642 - 4,08,642
Total - 82,73,236 - 82,73,236
*Particulars of Remuneration of CEO {Shri Anil Rai Gupta, Chairman and Managing Director} and CFO {Shri Rajesh Kumar Gupta,
Whole-time Director (Finance) and Group CFO} are given under point VI(A) above.
#
During the year 2020-21, 1,364 Equity Shares of ` 1/- each, were allotted to the Company Secretary under Havells Employees Long
Term Incentive Plan 2014. In respect of these shares, amount has been contributed by the beneficiary himself.
77
VII. Penalties/ Punishment/ Compounding of Offences

Type Section of the Brief Details of penalty/ Authority Appeal
Companies Act Description punishment/ [RD / NCLT / made, if any
compounding fees Court] (give details)
imposed
A. COMPANY
Penalty NIL
Punishment NIL
Compounding NIL
B. DIRECTORS
Penalty NIL
Punishment NIL
Compounding NIL
C. OTHER OFFICERS IN DEFAULT
Penalty NIL
Punishment NIL
Compounding NIL
78
ANNEXURE - 3
Introduction 01-13
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31.03.2021
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To, (b) The Securities and Exchange Board of India

The Members, (Prohibition of Insider Trading) Regulations, 2015;
Integrated Report
(c) The Securities and Exchange Board of India
We have conducted the secretarial audit of the compliances (Issue of Capital and Disclosure Requirements)
of applicable statutory provisions and the adherence to good Regulations, 2018;
corporate practices by Havells India Limited (hereinafter (d) The Securities and Exchange Board of India
referred to as the Company). Secretarial Audit has been
(Share Based Employee Benefits) Regulations,
conducted in a manner that provided us a reasonable basis
2014;
for evaluating the corporate conduct/ statutory compliances
and expressing our opinion thereon. (e) The Securities and Exchange Board of India
(Issue and Listing of Debt Securities) Regulations,
14-44
Based on our verification of the books, papers, minute 2008;
books, forms and returns filed and other records maintained
by the Company and also the information provided by the (f) The Securities and Exchange Board of India
Company, its officers, agents and authorized representatives (Registrars to an Issue and Share Transfer Agents)
Statutory Reports
during the conduct of secretarial audit, we hereby report that (Amendment) Regulations, 2006 regarding the
in our opinion, the Company has, during the audit period Companies Act and dealing with client;
covering the financial year ended on 31st March, 2021,
(g) The Securities and Exchange Board of India
complied with the statutory provisions listed here under and
(Listing Obligations and Disclosure Requirements)
also that the Company has proper Board-processes and
Regulations 2015;
compliance-mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter:- (vi) The Employees State Insurance Act, 1948
(vii)
Employees Provident Fund and Miscellaneous
45-141
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the Provisions Act, 1952
Company for the financial year ended on 31st March, 2021
(viii) Employers Liability Act, 1938
to ascertain the compliance of various provisions of:- Financial Statements
(ix) Environment Protection Act, 1986 and other
(i) The Companies Act, 2013 and the rules made environmental laws
thereunder;
(x) Air (Prevention and Control of Pollution) Act, 1981
(ii) The Securities Contracts (Regulation) Act, 1956
(‘SCRA’) and the rules made thereunder; (xi) Factories Act, 1948
(iii) The Depositories Act, 1996 and the Regulations and (xii) Industrial Dispute Act, 1947
Bye-laws framed thereunder;
(xiii) Payment of Wages Act, 1936 and other applicable
142-309
(iv) The Foreign Exchange Management Act, 1999 and the labour laws
rules and regulations made thereunder;
(v) The following Regulations and Guidelines prescribed We have also examined compliance with the applicable
under the Securities and Exchange Board of India Act, clauses of the Secretarial Standards issued by The Institute
1992 (‘SEBI Act’):- of Company Secretaries of India.
(a) The Securities and Exchange Board of India We report that during the period under review, the Company
(Substantial Acquisition of Shares and Takeovers) has complied with the provisions of the Act, Rules,
Regulations, 2011; Regulations, Guidelines, Standards, etc. mentioned above.
79
We further report that currently traded at both the Stock Exchanges. Further, the
Company successfully issued and redeemed Commercial
• The Board of Directors of the Company is duly
Paper on the due date of maturity i.e. 26th March 2021, for an
constituted with proper balance of Executive Directors,
amount of ` 500 crores, which were duly listed on National
Non-Executive Directors and Independent Directors.
Stock Exchange of India Limited. Furthermore, we report
• Adequate notice is given to all directors to schedule the that there were no instances of:
Board Meetings, agenda and detailed notes on agenda
were sent at least seven days in advance and a system i. Public/Right/Preferential issue of shares / debentures/
exists for seeking and obtaining further information and sweat equity, etc.
clarifications on the agenda items before the meeting ii. Redemption / buy-back of securities.
and for meaningful participation at the meeting.
iii. Foreign technical collaborations
• Dissenting member’s view were not required to be
captured and recorded as part of the minutes as there Note: This report is to be read with our letter of even date
was no such instance. which is annexed as ‘Annexure A’ and forms an integral part
• There are adequate systems and processes in the of this report.
Company commensurate with the size and operations
of the company to monitor and ensure compliance with For MZ & ASSOCIATES
applicable laws, rules, regulations and guidelines. Company Secretaries
We further report that during the audit period the Company CS Mohd Zafar
has issued and allotted Equity Shares under Havells Partner
Employees Stock Purchase Plan 2014, Havells Employees Membership No: FCS 9184
Stock Purchase Scheme 2015 and Havells Employees Stock Date: 05th May, 2021 CP: 13875
Purchase Scheme 2016 which were successfully listed and Place: New Delhi UDIN: F009184C000244683
ANNEXURE A
To
The Members,
Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to
express an opinion on these secretarial records based on our audit.
2. We 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 test basis to ensure that correct facts
are reflected in secretarial records. We believe that the processes and practices, we followed provide a reasonable
basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the company.
4. Where ever required, we have obtained the Management representation about the compliance of laws, rules and
regulations and happening of events etc.
5. The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility
of management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company.
For MZ & ASSOCIATES

Company Secretaries
CS Mohd Zafar
Partner
Membership No: FCS 9184
Date: 05th May, 2021 CP: 13875
Place: New Delhi UDIN: F009184C000244683
80
ANNEXURE - 4
Introduction 01-13
Details of Investments as on 31st March, 2021
Name of Company Amount (INR)
Havells Holdings Limited 1,18,74,365
Jiangsu Havells Sylvania Lighting Limited 17,27,36,045
Havells Guangzhou International Limited 45,29,301
Total 18,91,39,711
Notes:
Integrated Report
a) The Company is carrying an amount of ` 13.59 crores as provision for impairment of investment held in Havells Holdings Limited.
b) The Company has measured its investment in its Joint Venture (Jiangsu Havells Sylvania Lighting Limited) at fair value less cost to sell
{refer note 11(E)(b) and note 13(b)} of Standalone Financial Statements).
Details of Loans as on 31st March, 2021

As at 31st March, 2021, the Company has not given any loan.
Details of Guarantees as on 31st March, 2021
14-44
As at 31st March, 2021, the company has not given any guarantee.
Statutory Reports
45-141
142-309
81
ANNEXURE - 5
Form No. AOC-2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
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 transactions under third
proviso thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis –
NONE; DURING THE REPORTING PERIOD, ALL TRANSACTIONS WERE AT ARM’S LENGTH BASIS.
(a) Name(s) of the related party and 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 transactions 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 arrangement or transactions at arm’s length basis –

NONE; DURING THE REPORTING PERIOD, THERE WAS NO MATERIAL* CONTRACT OR ARRANGEMENT.
(*As defined under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and adopted by the
Board of Directors in the Related Party Transactions Policy of the Company, “Material Related Party Transaction” means
a transaction with a related party if the transaction / transactions to be entered into individually or taken together with
previous transactions during a financial year, exceeds 10% of the annual consolidated turnover of the company as per
the last audited financial statements of the company.)
(a) Name(s) of the related party and 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 transactions 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.
For and on behalf of

Board of Directors of Havells India Limited
Anil Rai Gupta

Delhi, May 20, 2021 Chairman and Managing Director
82
ANNEXURE - 6
Introduction 01-13
ANNUAL REPORT ON CSR PURSUANT TO RULE 8 OF COMPANIES
(CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014
The CSR programmes and pursuits of the Company are illustrated in the Social & Relationship
Capital section of the Integrated Report on page 37
1. Brief outline on CSR Policy of the Company

I n adherence to section 135 of the Companies Act 2013 read with the Companies (Corporate Social Responsibility Policy)
Rules, 2014, the Board of Directors upon the recommendation of CSR Committee, in its meeting held on 23rd April, 2014,
Integrated Report
approved a CSR Policy of the Company. The CSR Policy was last reviewed by the Board on 20th March, 2019.
In accordance with the primary CSR philosophy of the group and the specified activities under Schedule VII to the
Companies Act, 2013, the CSR activities of the Company cover certain thrust areas such as mid-day meals, sanitation
facilities, preservation of heritage monuments, afforestation etc.
The Corporate Social Responsibility Policy of the Company is available on the website of the Company https://havells.
com/en/discover-havells/investor-relation/codes-and-policies.html in the ‘Investor Relations Section’ under “Codes &
Policies”.
14-44
2. Composition of CSR committee
As at 31st March, 2021, the Corporate Social Responsibility Committee comprised of 4 (four) Members of the Board,
Statutory Reports
2 (two) of which were Independent Directors and 2 (two) were Executive. The Chairman of the Committee is an
Independent Director.
Sl. Name and Designation/ Nature of Directorship Total No. of CSR Committee Meetings
No. held during the year – 3
Attendance in CSR Committee Meetings held on
12 -May- 20
23- Mar- 21
29- Oct- 20
45-141
1. Shri Jalaj Ashwin Dani,   
Independent Director, CHAIRMAN
2. Shri Bontha Prasada Rao# NA  
Independent Director, MEMBER

3. Shri Vellayan Subbiah*  NA NA
Independent Director, MEMBER
4. Shri Anil Rai Gupta,   
Executive Director, MEMBER
5. Shri Rajesh Kumar Gupta,   
Executive Director, MEMBER
142-309
#
Appointed as a Member after the Committee Meeting held on 12th May, 2020.
* Shri Vellayan Subbiah resigned as an Independent Director on 22nd October, 2020.
3. Provide the web-link where Composition of CSR Committee, CSR Policy and CSR projects approved by the Board are
disclosed on the website of the Company
CSR Committee – https://www.havells.com/en/aboutus/committees.html
CSR Policy – https://www.havells.com/en/discover-havells/investor-relation/codes-and-policies.html
CSR Programmes – https://www.havells.com/en/corporate-social-responsibility.html
83
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
Not applicable for financial year 2020-21.
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any - NIL
Sl. Financial Year Amount available for set-off from Amount required to be setoff for
No. preceding financial the financial year, if any (in `)
years (in `)
1.
2.
3.
TOTAL
6. Average net profit of the Company as per Section 135(5) – ` 1,048.55 crores
7. (a) Two percent of average net profit of the company as per section 135(5) 20.97 crores
(b) Surplus arising out of the CSR projects or programmes or activities of the NIL
previous financial years.
(c) Amount required to be set off for the financial year, if any NIL
(d) Total CSR obligation for the financial year (7a+7b-7c) 20.97 crores
8. (a) CSR spent or unspent for the financial year:

Total Amount Amount Unspent (in `)
Spent for the Total Amount transferred to Amount transferred to any fund
Financial Year Unspent CSR Account as per specified under Schedule VII as per second
(in `) section 135(6) proviso to section 135(5)
Amount Date of Transfer Name of the Fund Amount Date of Transfer
22.47 crores 12 crores 29.04.2021 NA Nil NA
(b) Details of CSR amount spent against ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl Name of the Item from Local Location of the Project Amount Amount Amount Mode of Mode of Impleme-ntation
No. project the list of area project Duration allocated spent in transferred to Impleme- - Through Implementing
activities (Yes/ No) for the the current Unspent CSR ntation - Agency
in project financial Account for the Direct
Schedule State District (in `) Year project as per (Yes/ No) Name CSR
VII to the (in `) Section 135(6) Registration
Act. (in `) Number
1. Supporting (ii)
education
IFRE- Ashoka Yes Haryana Sonepat 3 years 16.00 cr 4.00 cr 12.00 cr No IFRE CSR00000712
University.
TOTAL 16.00 cr 4.00 cr 12.00 cr
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Project Project Local Location Amount Mode of Mode of implementation -
No. Item from the list area of spent for impleme- Through implementing
of activities in (Yes/ the project the ntation - Agency
schedule VII to No) project Direct
State District Name CSR Regn No., if
the Act. (in `) (Yes/No)
already registered
1. Environment (iv)
Conservation
Plantation Works Yes MP, HP, Bhopal, 3.31 cr Yes Yes
Rajasthan Baddi,
Neemrana
NCR, UP 0.05 cr No QRG Foundation CSR00001995
84
(1) (2) (3) (4) (5) (6) (7) (8)
Introduction 01-13
Sl. Name of the Project Project Local Location Amount Mode of Mode of implementation -
No. Item from the list area of spent for impleme- Through implementing
of activities in (Yes/ the project the ntation - Agency
schedule VII to No) project Direct
State District Name CSR Regn No., if
the Act. (in `) (Yes/No)
already registered
Electric Charging Station Yes Delhi Anand 0.08 cr No Rotary
Installation (Under Vihar Panchshila
process of Park Service
installation)
Kanya Upvan Yes Rajasthan Alwar 0.21 cr Yes Yes
2. Providing sanitation (i)

facilities
Integrated Report
Distribution of re-usable Yes Across 1.44 cr No QRG CSR00001995
sanitary pads for young various Foundation
girls major States
Building toilets in schools Yes Rajasthan Alwar 0.44 cr Yes
where mid-day meals are
provided.
3. Mid-Day Meal (MDM) and (i)/ (xii)

Covid -19 Programme
14-44
Covid Meals to poor Yes Rajasthan Alwar 0.74 cr No QRG CSR00001995
through QRG Foundation Foundation
Covid Meals to Poor Yes Rajasthan Neemrana 0.04 cr Yes
Statutory Reports
4. Supporting education of (ii)
underprivileged children
Providing tables and Yes Rajasthan, Haridwar, 0.04 cr Yes
benches to children in HP Baddi,
government primary Alwar &
schools in Haridwar & Neemrana
Neemrana.
5. Protection and (v)
45-141
Conservation of
Heritage
Contributing to Aga Yes Delhi Delhi 0.07 cr No Aga Khan
Khan Foundation India, Foundation Financial Statements
a private non-profit
foundation registered
under the Companies
Act, 2013 engaged
in restoration and
conservation of various
heritage monuments
6. Covid care support (xii)

142-309
Fans for Quarantine Yes Uttarakhand Rudrapur 0.05 cr Yes

Centre
TOTAL 6.47 cr
(d) Amount spent in Administrative Overheads : NIL
(e) Amount spent on Impact Assessment, if applicable : NIL
(f) Total amount spent for the Financial Year (8b+8c+8d+8e) : ` 22.47 crores
85
(g) Excess amount for set off, if any
Sl. No. Particular Amount (in `)

(i) Two percent of average net profit of the company as per section 135(5) 20.97 cr
(ii) Total amount spent for the Financial Year 22.47 cr
(iii) Excess amount spent for the financial year [(ii)-(i)] 1.50 cr
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous NIL
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 1.50 cr
9. (a) Details of Unspent CSR amount for the preceding three financial years: NIL
Sl. Preceding Amount Amount Amount transferred to any fund specified Amount
No. Financial transferred to spent in the under Schedule VII as per section 135(6), remaining to
Year. Unspent CSR reporting if any be spent in
Account under Financial Name Amount Date of succeeding
section 135 (6) Year (in `) of the (in `) transfer. financial
(in `) Fund years. (in `)
1.
2.
3.
TOTAL
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): NIL
(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project ID Name Financial Project Total Amount Cumulative Status of the
No. of the Year in duration. amount spent on the amount spent project -
Project which the allocated project in the at the end of Completed
project was for the reporting reporting /Ongoing
commenced. project Financial Year Financial Year
(in `) (in `) (in `)
1.
2.
3.
TOTAL
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through
CSR spent in the financial year
Date of creation or Amount of CSR Details of the entity or public authority or Provide details of the capital
acquisition of the spent for creation or beneficiary under whose name such capital asset(s) created or acquired
capital asset(s) acquisition of capital asset is registered, their address etc. (including complete address
asset (` in cr.) and location of the capital asset)
27-04-20 0.03 Govt. Sec. School Village-Bhaggu Ka Bas, Bio Toilet at Bansur
Tehsil-Bansur-301412
27-04-20 0.03 Govt. Sr. Sec. School Village-Devson, Tehsil- Bio Toilet at Bansur
Bansur-301412
04-05-20 0.03 Govt. Sr. Sec. School Shivaji Park, Alwar Bio Toilet at Alwar
City, Tehsil-Alwar-301001
07-05-20 0.03 Govt. Sec. School Village-Jangiwada, Bio Toilet at Mundawar
Tehsil-Mundawar-301401
07-05-20 0.03 Govt. Sr. Sec. School Village-Babriya, Bio Toilet at Bansur
09-05-20 0.03 Govt. Sec. School Village-Jalawas Manethi, Bio Toilet at Mundawar
Tehsil-Mundawar-301401
86
Date of creation or Amount of CSR Details of the entity or public authority or Provide details of the capital
Introduction 01-13
acquisition of the spent for creation or beneficiary under whose name such capital asset(s) created or acquired
capital asset(s) acquisition of capital asset is registered, their address etc. (including complete address
asset (` in cr.) and location of the capital asset)
11-05-20 0.03 Govt. Sr. Sec. School Village-Girundi, Tehsil- Bio Toilet at Bansur
Bansur-301402
11-05-20 0.03 Govt. Upper Primary School, Village- Bio Toilet at Mundawar
Bichala, Tehsil-Mundawar-301024
11-05-20 0.03 Govt. Upper Primary School Village- Bio Toilet at Behror
Chobara, Tehsil-Behror-301706
20-05-20 0.03 Govt. Upper Primary School Village-Choroti Bio Toilet at Ramgarh
Bas, Tehsil-Ramgarh-301001
20-05-20 0.03 Govt. Sr. Sec. School Village-Bilali, Tehsil- Bio Toilet at Bansur
Integrated Report
Bansur-301024
20-05-20 0.03 Govt. Sr. Sec. School Village-Choola, Tehsil- Bio Toilet at Bansur
Bansur-301402
25-05-20 0.03 Govt. Sr. Sec. School Village-Mothuka, Bio Toilet at Bansur
25-05-20 0.03 Govt. Sr. Sec. School Village-Rasnali, Tehsil- Bio Toilet at Bansur
Bansur-301402
Total 0.38
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11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section
135(5). NA
Statutory Reports
Anil Rai Gupta Jalaj Ashwin Dani
Chairman and Managing Director Chairman CSR Committee
Date: 20th May, 2021
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142-309
87
ANNEXURE - 7
(A) Details pursuant to the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(1)
of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
Relevant Prescribed Requirement Particulars
clause u/r 5(1)
(i) Ratio of the remuneration (excluding - Ratio of the remuneration of Shri Anil Rai Gupta,
Commission) of each director to the median Chairman and Managing Director to the median
remuneration of the employees of the company remuneration of the employees – 74:1
for the financial year - Ratio of the remuneration of Shri Ameet Kumar
Gupta, Whole-time Director to the median
remuneration of the employees – 29:1
- Ratio of the remuneration of Shri Rajesh Kumar
Gupta, Whole-time Director (Finance) and Group
CFO – 67:1
- Ratio of the remuneration of Shri Siddhartha
Pandit, Whole-time Director – 14:1
(ii) Percentage increase in remuneration - Shri Anil Rai Gupta, CMD – 2.47%
(excluding Commission) of each director, - Shri Ameet Kumar Gupta, WTD – 2.75%
Chief Financial Officer, Chief Executive Officer,
- Shri Rajesh Kumar Gupta, WTD (CFO) – 6.91%
Company Secretary or Manager, if any, in the
financial year - Shri Siddhartha Pandit, WTD – 6.98%
- Shri Sanjay Kumar Gupta, CS – 6.82%
(iii) Percentage increase in the median 6.76%
remuneration of employees in the financial year
(iv) Number of permanent employees on the rolls 5,727 Employees
of company
(v) Average percentile increase already made - Average increase in remuneration of Managerial
in the salaries of employees other than the Personnel – 4.39%
managerial personnel in the last financial year - Average increase in remuneration of employees
and its comparison with the percentile increase other than the Managerial Personnel – 5.81%
in the managerial remuneration and justification
The top level compensation is linked to Profit Before
thereof and point out if there are any exceptional
Tax.
circumstances for increase in the managerial
remuneration
(vi) Affirmation that the remuneration is as per the The remuneration is as per the Nomination
remuneration policy of the company and Remuneration Policy for the Directors, Key
Managerial Personnel and Other Employees of the
Company, formulated pursuant to the provisions of
Section 178 of the Companies Act, 2013.
(B)
Statement Showing Particulars of under provisions of Section 197 of the Companies Act,
Employees Pursuant to the Provisions 2013 and Rule 5(2) and 5(3) of the Rules are available
of Section 197(12) of the Companies Act, to any shareholder for inspection on request.
2013 Read with Rule 5(2) of the Companies
(Appointment and Remuneration of Such details are also available on your Company’s
Managerial Personnel) Rules, 2014 website at https://havells.com/en/discover-havells/
investor-relation/disclosures.html
Details of employee remuneration as required
88
ANNEXURE - 8
Introduction 01-13
Our response to Covid- 19
Despite the difficult situation, Havells remained resilient drawing strength from its Culture, Brand, Digital & Physical
Infrastructure, strong trust & relationships with channel partner along with Entrepreneurial spirit of the team.
Scale of the Problem

Covid-19 led lockdown was an unprecedented event which was beyond the risks conceptualized in traditional ERM exercise.
Though there have been several disruptions in the past which were either supply led or demand led however Covid-19
dwarfed all previous disruptions seen in the recent decades.
Integrated Report
Leadership team came to Fore
It was important to ensure that when the opportunity presents, Havells should be able to sprint back. Priorities were set:
• Employee safety
Health and safety of the employees remained absolute priority for the Company. Regular sanitization at offices and
factory, roster-based working, AI based tools to monitor social distancing were deployed.
• High Morale
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Several digital events were organized for the employees which varied from subject trainings, ideation sessions,
entertainment programs, live celebrity engagements, Yoga and motivational sessions to ensure physical as well as
psychological wellbeing.
Statutory Reports
• Communication
The frequency and intensity of the communication with channel partners and vendors was increased through digital
modes addressing large audience while maintaining close appearance.
• Adequate liquidity
Cash buffer was created with bank borrowing and reducing non- essential spends.
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• Support stakeholders
ensuring timely payment to the employees, its vendors and need based credit support to the customers.
Business Continuity
From May 2020, we concentrated on business continuity with strict safety protocols. Agility and digitisation were the key
enablers to ensure a quick bounce back once the lockdown was relaxed.
Factories operations resumed with focus on manufacturing the SKUs in demand from the trade. Supply chain team went out of
the way to ensure that the deliveries alongside the credit team which offered varied solutions to the customers to facilitate quick
restart and pave way towards normalization. Customer service team approached the situation with extreme empathy, helping
customers through on-call resolutions, DIY videos and need based contact-less physical visits. SOPs were defined for the field
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service engineers, including hygiene protocols and zero contact service and trained them to use virtual tools including video
call-assisted self-service.
Second wave
The second wave has been ferocious and disruptive, there were heightened call for medical assistance which were addressed
as feasible with entire support from Havells infrastructure and connect including hospitalization, provision of medicines,
oxygen and other needs.
89
• Contributed ventilators to QRG Health City, hospital in Faridabad

• We assisted in establishing a temporary 20 beds Covid facility with oxygen concentrators at Civil Lines in Delhi
• Facilitated in importing 1,000 Oxygen concentrators for employees and channel partners. Have created a pool of
Oxygen concentrators at branches and factories to be made available to Employee for exigencies
• The 45+ employee category has been fully vaccinated in the company. We are engaged with hospital chains to
evaluate vaccination for the remaining employees. The company would bear the cost of vaccination of employees
While Covid is an unfortunate event which has brought misery to public at large, it has strengthened our resolve for increased
technology adoption and become stronger than ever before with skilled & motivated employees.
90
ANNEXURE – 9
Introduction 01-13
Disclosure pursuant to Section 134(3)(m) of the Companies Act, 2013
read with Rule 8(3) of the Companies (Accounts) Rules, 2014
(A) Conservation of Energy (b) Steps taken by the Company for utilizing
alternate sources of energy
(i) Steps taken/ impact on Conservation of energy
Contributing to sustainable development
and the steps taken for utilising alternate
goals and government’s agenda of adopting
sources of energy
clean and green energy, the company has
Integrated Report
(a) Steps taken or Impact on conservation of been substituting a share of its total electricity
Energy requirement through solar energy. The company
At Havells, our continuous pursuit has been at present has solar power generation capacity
towards gaining maximum energy efficiency of 5.6 MW, which is about 8.5% of total electricity
in our operations and products. We do it consumption. Recently, the company has added
through implementing one of the best Energy 1.95 MW rooftop solar power plant at its Alwar
Management Systems (ISO 50001-EnMs), cutting plant site, which will be commissioned in FY
edge technology and dedicated research and 2021-22 thereby taking the captive solar power
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development centres. In the present financial generation capacity to 7.4 MW.
year the company undertook about 37 nos. of
ii Capital Investment on Energy Conservation
projects towards conservation of energy. Through
Equipment
Statutory Reports
our initiatives, we were able to mitigate 1,884.13
During the financial year the company has invested
tons of CO2 emissions, thereby contributing
INR 71.5 Lakhs for purchase and installation of state-
to combatting climate change. Details for the
of-the-art technology equipment and in projects for
projects is given below:
achieving energy efficiency through upgradations and
Description of the Energy saved Capital process optimization.
project per year Expenditure
(KWh) incurred in Havells’ R&D Commitment
purchase Havells is investing significantly in R&D, both in people
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of energy and infrastructure. With an aspiration to be a global
conservation peer in Electrical products, Havells has invested in a
equipment new R&D centre in Noida with a capacity for more than
(INR) 400 R&D engineers and technicians. The centre located Financial Statements
Energy Saved due in Sector 59, boasts of state-of-the-art laboratories for

to Optimization of 9,80,782 18,40,369 performance and endurance testing, prototyping,
motors and pumps materials testing & characterization, metrology for
multiple product categories. Additionally, the Company
Process
has invested in another centre in Bengaluru which
Optimization and
focuses on Innovation, platform creation and digital
Elimination of
5,31,128 1,97,250 products and services. While the Company is and will
Ideal running of
continue to be very focused on the building blocks for
machines and
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organic R&D activities, it is also working with leading

equipment
academic institutions, national research institutes
Savings through and product and services vendors for creating future
Installation of products. The open innovation portal “Soch” has been
New machines, an enabler for such partnerships. Finally, the Company
7,85,808 51,12,873
technology (dryer has been nurturing an Innovative culture with specific
installation, energy
emphasis on meaningfully protecting its Intellectual
efficient fans, etc)
Property through a proper framework for evaluating all
Total 22,97,718 71,50,492 invention disclosures and design registrations.
91
Basic Tenets of Technology Absorption technology with unique algorithm to sense room
Operating in a fast-moving electrical goods (FMEG) temperature and humidity, intelligently regulate
space, we have an imperative to respond quickly fan speed based on Heat Index thus delivering
to evolving changes in customer preferences and maximum comfort. We have added more intelligent
technological advances. Of course, an agile R&D effort algorithms into our smart appliances and devices to
is a key lever to meet these market needs. In the spirit enable situation-based decision-making capabilities.
of agility and flexibility, we are using a combination introduction of Glamax Smart Batten 20 W Tunable
of both our internal R&D resources and those of our White, Glamax Smart Bulb 9W Tunable White and RGB,
partners to ensure that we are at the forefront of these 16A Smart Socket and smart accessories for home
changes that are happening in the industry. Some of the automation. Other intelligent product introductions
cornerstones driving new technology introduction in our include: Color temperature (CCT) varying Street Lights
industry are listed below, which also form the strategic in line with our smart city and smart office ecosystem
basis of our technology absorption, adaptation, and initiatives which is first of its kind in India and one of
innovation for our products: the few installations worldwide, Entire range of Human
Centric Lighting launched for office segment, ST^DX
SMART Connected Products Range of communication ready MCBs, RCCBs with
all accessories for final distribution protection, Wi-Fi
There is a technological revolution happening by the
Enabled 6/16A Smart Sockets, Smart extensions, Voice
convergence of mechanical, electrical, electronics and
& App control, Wired & Wireless Home automation to
information technology-based systems, also referred to
control Modular Switches, Curtains, Smart Surveillance
as Cyber-physical systems. These technologies which
& Security products to provide a suite of home
swept the large industrial products few years ago are
automation solutions and all-in-one solar street
now getting more and more pervasive in consumer
light with motion sensor, Long Range (LoRa) based
electrical goods as well. The future is not restricted
system monitoring and control with user settable
to connected (IoT) devices but extending into Smart
dimming profiles that enables individual as well as
home living concepts with more and more appliances
remote management of streetlight lamps along with
becoming intelligent and capable of autonomous
autonomous operation based on predefined schedules,
learning facilitated by technologies such as Machine
light level sensor, and adaptive lighting.
Learning (ML), Artificial Intelligence (AI), Natural
Language Processing (NL) and edge computing.
Energy Conservation/ Efficiency
In the past, we made our forays into IoT, AI enabled
devices with the launch of connected products such We see energy efficiency as a big thrust in years to
as Adonia-I (WiFi enabled water heater), Lloyd Grande come. Havells continues to launch products that
Heavy Duty Smart Air conditioner, Futuro ceiling fan, are energy efficient, whether it be in the field of star
smart connected lighting platform for individual and labeled LED lighting (both indoor and outdoor),
group lighting control. fan or appliances. In this year, we have launched
Enticer & Efficiencia Neo ceiling fan with BLDC motor,
During 2020-21, we further intensified our smart which saves more than 50% power consumption as
connected product journey by strategic decision compared to normal Induction motor. With the revision
to standardize on indigenously developed IoT & of BEE energy start rating in induction motors, we were
AI platform which is comprehensive platform with able to save 75,000 MWH energy consumption in 2020.
connectivity, control hardware, product cloud, voice Majority of our SWAM series washing machine is already
control with AI/ ML capability & syncing of Havells fulfilling 5-star rating well ahead in the market where
unified app - addressing the need of scalability, mandatory BEE regulation is going to be effective by
security & complete data ownership- to provide an Jan 01, 2022. Reo Elegant Switch range used energy
unmatched consumer experience into Havells digital efficient materials which will save 30% more energy
products. Our smart products are providing voice- than previously used materials. Our refrigeration
activated services such as Alexa, Google Assistant system with frost free model and DC inverter models
and Siri that provide convenience and flexibility of are energy efficient and development is in progress for
hands-free voice computing to our Consumers. We 4 & 5 star rated refrigerators. Our Silencio mixer grinder
have planned many more smart products & devices in is capable of reducing 50% perceived noise level and
the forthcoming years which augment the life style and equipped with energy efficient HVDC motors.
well-being factors of consumers with the help of data
driven processing and decision making. Sustainability
Havells is committed to Sustainability, whether it be in
We extended our smart product portfolios with our the choice of materials during the design development
flagship product in the Fans category – Carnesia-I, process or in design/ development of products that
Stealthwood-I which have integrated smart sense are resource efficient (energy and/or water), or in
92
operational practices at its manufacturing plants or other • Electrical Wiring and Accessories – REO
Introduction 01-13
locations. From a design side, Havells has decided to Elegant switch range design, development and
use only RoHS compatible materials and manufacturing commercialization completed in record time
processes. We have initiated RoHS compliant under the tough situation of COVID-19 pandemic
electrical contact materials for EWA and started lead using energy efficient & cost-effective advanced
free soldering in electronic components of lighting engineering plastic material. Adaptation of
products. In Packaging design, the focus areas were unique & first in its kind with 8+1 (8step with
technology innovations for eco-friendly and recyclable zero mode) Electro-Mechanical Fan Regulator
materials. Our Lloyd top & front load washing machines to meet the consumer’s need. Development &
are capable of minimizing water consumption by use commercialization of antifungal antibacterial
of selective logic programs. We are well on our target Crabtree Switch ranges which is first time in India
of 15% increase in usage of sustainable packaging with concurrent demand against germ safety
material (bio-degradable or recyclable or recycled or during COVID-19 pandemics along with locally
material from renewable sources) against the baseline developed cost effective WiFi Switches.
Integrated Report
of Financial Year 2019-20.
• Lighting – Indigenous development of decorative
Adherence to Regulations and Standards Nu batten & Glamus antiglare batten Completed
and commercialized. App based smart home
This is an overarching driver which ensures quality
lighting (Glamax RGB/ Tunable White, Glamax
standards in development of all new products as
Batten), UV-C handheld UVED T8-8W for
mandated by governing/certifying bodies to ensure
disinfection and antibacterial cabinet for kitchen
compliance to worldwide (and country specific) norms.
application against germ in this concurrent
Our goal is to design, develop and launch products that
demand of pandemic COVID-19. Besides, viaduct
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will meet global requirements for safety, performance
lighting, tunnel lighting, variable connected solar
and reliability. Towards this, we are adopting global
street projects completed and commercialized
best practices such as the adoption of safety standard
in various parts of India. Havells is first entrant
IEC60335, RoHS compliance, relevant certifications
in the lighting market with driver on board (DOB)
Statutory Reports
as required for all our products. Our export markets
Technology in LED lamp & Downlighter segments.
continue to expand. Havells takes special pride in
developing products that comply to all electrical
• Water and air purifier – Adaptation of alkaline
industry standards and quality marks as regulated by
water media from Globexi Japan was completed
local institutions such as BIS, BEE, CEAMA, and IEEMA.
and MOU signed with ionic water solutions Canada
Specifically, for Lighting, washing machine (BIS is not
for CiM (Capacitive ion Movement) desalinization
applicable and BEE is voluntary), BEE star rating for
technology for the point of usability.
Water Heaters, AC, Domestic/kitchen appliances, AC,
and Fans.
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• Fans – The flagship model of smart connected
device with smart sensing, Stealth wood-I has
Specific Efforts of Technology Absorption
been launched which is more premium & elegant
To list a few of the examples where technology in look & finish with state-of-the-art temperature & Financial Statements
absorption has helped us create differentiated products humidity control. UV metallization process used
in the market include: to replace chrome plating with improved finish &
lifespan, protecting environment from the use of
• Small Domestic Appliances – Digitalization and hazardous substances and is RoHS compliant.
adoption of WiFi in small appliance segment was Stepping towards health and environment, coating
the major technological development in this year. material & process for the fans has been improved
India’s first digital OFR commercialized by Havells with minimum energy use and low organic volatile
along with In-house developed & launch of WiFi contents (VOCs). Implemented coating process
platform for Adonia-I and Preset Menu digital mixer
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with 2C1B paints (2-coat 1-bake) instead of 3C2B

grinder. Development of odor-free honeycomb (3-coat 2-bake) to save fuel and reduce VOCs for
pad for air cooler and descalant to get rid of fans. Controller for BLDC technology motor for
scale due to hard water in water heater is going ceiling fans developed locally in India.
to bring smile at consumer’s face. Localization of
components in appliances has also been done • Circuit Breakers (Distribution Products and
with development of sealed submersible pump Industrial Switchgear) - Electronic Sub metering
PCBA and swing motor for air cooler and heating in Current Limiting devices having unique features
element for water heater as substitute for the of Dual Energy Meter with online display, analysis
import. reports & user mobile application experience has
93
been introduced along with electronic accessories under various segments such as water purifiers,
for protection & control devices to monitor, control connected products in the appliance, switches and
its working from local as well as remote locations. lighting areas, low noise ceiling fans and mixer grinders,
Development of Arc Fault Protection in existing power saving BLDC (Brush-Less DC) fans. In many
circuit breakers with integrated as well as add cases, products are evolved from previous versions
on possibilities will provide option to consumers. to be more robust and better performing. This has
IPR5+ ACB (Intelligent Protection Release for Air been achieved through a combination of prevention
Circuit Breakers) with MODBUS communication and detection methodologies used in the development
and protection features, Hyundai contactor range process. Prevention methodology includes FMEA
local manufacturing initiated to aid business (Failure Modes and Effects Analysis), Finite Element,
growth and DFSS (Design for Six Sigma) process CFD (Computational Fluid Dynamics) Simulation,
adopted in HIM+ MCCB to improve robust design DFSS (Design for Six Sigma) and Mold flow analysis
& product reliability. (MFA). The use of different simulation techniques is to
establish optimize design & performance with first time
• Lloyd – During 2020-21, we introduced Plasma right approach of tool & product manufacturing. The
ion generator in Air Conditioners to safeguard organization continues to drive more rigor in testing
from air-borne pathogens (bacteria & viruses), and validation process by using larger sample size and
PM0.3 (Particulate Matter 0.3 micron) & bad odor failure testing amongst others to detect potential field
removal. We accelerated the development of our issues prior to launch of product in the market. All these
indigenized AC Controller with dual objectives of efforts have led to sizeable impact on the revenue from
(a) important substitution and (b) taking control of the new product launches. During FY 2020-21, the
critical technologies to help better positioning of contribution to the top line was approximately 14% from
our products in future. products launched during FY20-21 (Apr’20 – Mar’21)
and 29% from products launched during FY19-20
For LED’s we went for technological upgradation with (Apr’19 – Mar’20) – thereby yielding 43% of FY revenues
launch of official Android TVs ranging from 32’’ to 55’’ from products launched during last 8 quarters.
screen with HD (High Definition), FHD (Fully HD), and
4K resolution. In washing machines category, our efforts Value enhancement through product engineering –
have been directed towards making our products lead Havells has a continuous improvement methodology
the market in terms of energy efficiency – more so since consisting of analyzing field returns, finished goods
5-star energy rating is going to be mandatory from Jan rejects, in process rejects and validation rejects. Based
1, 2022. We have also launched 5-star rated SAWM on the data, we continuously improve our products using
(Semi-Automatic Washing Machine) series developed FMEA’s, Structured Problem-solving methodologies,
with glass top and damper lid technology which is the Stress and environmental Failure testing. We also
widest range of washing machines in the industries. In continuously improve the cost position of our products
refrigeration category, we launched complete series by using tools such as Functional Analysis where cost
of refrigerators with different capacity with frost free is assigned to important functions and cost due to
and inverter models which are capable of continuous unimportant functions are deleted using brainstorming
operation even on home inverter during power outage. and innovation.
We are also actively pursuing initiatives for indigenous
development against import substitutes. Havells is focused on innovative products and
encourages employees to be creative and file for
Benefits derived from these R&D Efforts: patents and registrations as part of their day to day
We had a successful launch of several new products – activity. In Financial Year 2020-21, the Company
Over 400 projects completed in the Financial Year filed for 133+ new IPRs (Intellectual Property Rights)
2020-21. This includes multiple new category projects including Patent filings and Design Registrations.
The company has Imported following technologies during last three years reckoned from the beginning of the
financial year:
Details of Technology Imported Year of Import/ Whether If not fully
Introduction technology absorbed, areas
has been fully where this has
absorbed not taken place
Ansys License for CFD (Computational Fluid Dynamics) 2018 Yes N.A.
Microsoft Office PMO – Project Management Office 2018 Yes N.A.
Microsoft Project Online 2018 Yes N.A.
Goniometer for Luminaire Spatial 2018 Yes N.A.
94
Details of Technology Imported Year of Import/ Whether If not fully
Introduction 01-13
Introduction technology absorbed, areas
has been fully where this has
absorbed not taken place
FTIR for material identification 2019 Yes N.A.
Surge Protection Testing Equip. 2019 Yes N.A.
Programmable AC Power Source 2019 Yes N.A.
Chroma make Prog DC Electronic Load main & load Module 2019 Yes N.A.
5 H Surge Generator & Isolated Voltage Regulator 2019 Yes N.A.
Electric Water Heater Life Testing Machine with Accessories 2019 Yes N.A.
Artec Space Spider 3D Scanner & Accessories 2019 Yes N.A.
Integrated Report
Programmable DC Power Supply 2019 Yes N.A.
Creo for Simulate to give quick design guidance from 2019 Yes N.A.
structural perspective
Altair Hypermesh License 2019 Yes N.A.
Ansys HPC Licenses for Parallel computing 2019 Yes N.A.
View Master – Advanced Gerber and PCB layout editor 2020 Yes N.A.
(software)
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4 channels isolated hand-held oscilloscope 2020 Yes N.A.
4 channel 500Mhz oscilloscope with function generator and 2020 Yes N.A.
logic analyzer
SMD rework station 2020 Yes N.A.
Statutory Reports
High power (12KW) variable DC power supplies 2020 Yes N.A.
Isolation transformers 2020 Yes N.A.
High power Variac 2020 Yes N.A.
power analyser 2020 Yes N.A.
Multi-channel data logger 2020 Yes N.A.
Precision multi output power supply 2020 Yes N.A.
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6.5-digit multimeter 2020 Yes N.A.
LCR meter 2020 Yes N.A.
MATLAB Licenses (2 Nos) 2020 Yes N.A. Financial Statements
MATLAB Licenses (2 Nos) 2020 Yes N.A.
Submersible pump with sealed technology air cooler 2020 Localized N.A.
The company shall continue its endeavor to adopt (c) Foreign Exchange Earnings and Outgo
technologies for its product range to meet the During FY 2020-21, our international business
requirements of a globally competitive market. spread to many more geographies & we also
The expenditure incurred on Research and started exporting new product categories like
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Development Air-conditioners, British standards Switchgear &

RoHS 3.0 & REACH compliant Switchboards.
(` in Crores)
Particulars 2020-21 2019-20 We saw growth on all product categories across
(a) Capital 5.16 16.00 all regions in this FY.
(b) Recurring 90.43 85.56 Major Highlights on markets, Certifications,
TOTAL 95.59 101.56 Branding & Channel Partners:
Total R & D expenditure as 0.92% 1.08% • We went started a new strategic alliance with
% of Total Turnover a prominent International player with signing
95
of new contracts this year for Switchgear he details of Foreign exchange earnings and outgo
T
Category and we are exploring new product during the period under review is as under
categories for cooperation.
(` in Crores)
• We have successfully entered into newer
markets this year and added more than 20 Particulars 2020-21 2019-20
new countries this year. Foreign Exchange earned 309.28 245.59
• We are continuously investing on international Foreign Exchange used 1,785.55 1,881.40
certification & have added UL certifications
for American subcontinent and RoHS 3.0 for
European markets. We are optimistic that this For and on behalf of
will help us grow at developed markets. Board of Directors of Havells India Limited
• We are continuing the investment in Brand
building & Channel engagement activities
like Retail branding, display, merchandising Anil Rai Gupta
and other dealers/ electrician/ architect Delhi, May 20, 2021 Chairman and Managing Director
meets across different markets.
96
Business Responsibility Report
Introduction 01-13
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
Sl. No. Disclosures Information/Reference Sections
1 Corporate Identity Number (CIN) of the Company L31900DL1983PLC016304
2 Name of the Company Havells India Limited
3 Registered address 904, 9th Floor, Surya Kiran Building, K G Marg,
Connaught Place, New Delhi – 110001
4 Website http://www.havells.com/
Integrated Report
5 E-mail id investors@havells.com
6 Financial Year reported 1st April 2020 to 31st March 2021
7 Sector(s) that the Company is engaged in (industrial Group NIC Code / Description Main
activity code-wise) Class Description
273 2732 Manufacture of other Cables
electronic and electric wires
and cables
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271 2710 Manufacture of electric Switchgears
motors, generators,
transformers, electricity
distribution and control
Statutory Reports
apparatus
275 2750 Manufacture of domestic Electronic
appliances Consumer
Durables
274 2740 Manufacture of electric Lighting &
lighting equipment Fixtures
275, 2750, Manufacture of consumer Lloyd
264 2640 electronics Consumer
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8 List three key products/services that the Company 1. SWITCHGEAR: Switches, Domestic Switchgears, Industrial
manufactures/provides (as in balance sheet) Switchgears, Capacitors, Automation and Control
2. CABLES : Power Cable and Flexible Cables
3. LIGHTING AND FIXTURES : Professional Luminaires and
Consumer Luminaires
4. ELECTRICAL CONSUMER DURABLES: Fans, Small
domestic appliances and Water Heaters
5. LLOYD CONSUMER : Air Conditioners, Refrigerator, Washing
Machine Televisions, and other domestic appliances
6. Others : Motors, Solar, Pump, water purifiers and Personal
Grooming Products
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9 Total number of locations where business activity is

undertaken by the Company:
a. No. of International Location
Our Business activity is spread across both National and
(Provide Details of Major 5)
International locations. For details please refer page no. 08
b. No. of National Location &132 of this Integrated Annual Report.
10 Markets served by the Company We have sales presence in over 60+ countries
97
SECTION B: FINANCIAL DETAILS OF THE COMPANY

Sl. No. Disclosures Information/Reference Sections
1 Paid-up Capital (INR) 62.60 Crores
2 Total Turnover (INR) 10427.92 Crores
3 Total Profit after Taxes (INR) 1039.64 Crores
4 Total Spending on Corporate Social Responsibility During the Financial Year 2020-21, the Company spent 20.97
(CSR) as a percentage of profit after Tax (%) Crores on Corporate Social Responsibility activities.
5 List of activities in which expenditure in 4 above List of major CSR Activities undertaken by Havells India
has been incurred Limited are :
1. Meals to Needy during COVID Times (extended Havells
Mid-Day meal) – Distributed meals to the needy people,
during COVID times.
2.
Hygiene and sanitation Initiative –
a. Construction and maintenance of bio-toilets in
govt. schools.
b. Distribution of re-usable sanitary napkins to girls,
across various states.
3. Education and School Infrastructure-
a. Providing support and assistance to Ashoka
university for developing educational infrastructure.
b. Donating table and benches to government schools,
made from recycled waste wood.
4.
Tree Plantation- Large scale tree plantation initiative in
Madhya Pradesh and Rajasthan.
SECTION C: OTHER DETAILS

1. Does the Company have any Subsidiary Company/ Companies?
Please refer Director’s report
2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then
indicate the number of such subsidiary company(s).
The Subsidiary Companies do not participate in the BR Initiatives of the Company.
3. Do any other entity/entities (e.g. Suppliers, distributors etc.) that the Company does business with, participate in
the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%,
30-60%, More than 60%].
The other entities e.g. Suppliers, distributors, etc. with whom the Company does business, do not participate in the BR
Initiatives of the Company.
SECTION D: BR INFORMATION
1. Details of Director / Directors responsible for BR:
a) Details of the Director / Directors responsible for implementation of the BR policy / policies:
DIN Number : 00002838
Name : Ameet Kumar Gupta
Designation : Director
b) Details of the BR head:

Name : Shri Nitin Singh
Designation : Head CSR & Sustainability
Telephone no. : 0120-477-2465
e-mail id : Nitin.Singh@havells.com
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2. Principle-wise (as per NVGs) BR Policy / policies (Reply in Y / N):
Introduction 01-13
The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs) released
by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility.
Principle 1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
Principle 2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their
life cycle
Principle 3 Businesses should promote the wellbeing of all employees.
Principle 4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who
are disadvantaged, vulnerable and marginalized
Principle 5 Businesses should respect and promote human rights
Integrated Report
Principle 6 Businesses should respect, protect, and make efforts to restore the environment
Principle 7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Principle 8 Businesses should support inclusive growth and equitable development.

Principle 9 Businesses should engage with and provide value to their customers and consumers in a responsible
manner
Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
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1 Do you have a policy / policies for... Y Y Y Y Y Y NA Y Y
2 Has the policy been formulated Relevant internal and external stakeholders were consulted,
in consultation with the relevant as deemed appropriate, during the formulation of the policies
Statutory Reports
stakeholders?
3 Does the policy conform to any National All the policies have been developed considering relevant
/ international standards? If Yes, specify? national and international standards including but not limited
(50 words) to Companies Act, Factories Act, ISO standards, UN Global
compact and GRI.
4 Has the policy being approved by the Y Y Y Y Y Y NA Y Y
Board? If yes, has it been signed by MD /
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Owner / CEO / appropriate Board Director?
5 Does the Company have a Y Y Y Y Y Y NA Y Y
specified committee of the Board/ Director
/ Official to oversee the implementation of Financial Statements
the policy?
6 Indicate the link for the policy to be viewed
Refer list of policies below
online?
7 Has the policy been formally Y Y Y Y Y Y NA Y Y
communicated to all relevant internal and
external stakeholders?
8 Does the Company have in-house structure Y Y Y Y Y Y NA Y Y
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to implement the policy/ policies?

9 Does the Company have a grievance Y Y Y Y Y Y NA Y Y
redressal mechanism related to the
policy/policies to address stakeholders’
grievances related to the policy/policies?
10 Has the Company carried out independent Y Y Y Y Y Y NA Y Y
audit / evaluation of the working of this
policy by an internal or external agency?
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List of policies
P1: Code of Conduct for Board Members and Senior Management and Other employees, Vendor Code of Conduct, Idea
and Satark Policy- http://www.havells.com/en/investor-relations/Codes-and-Policies.html
P2: IMS QEEHS Policy – https://www.havells.com/en/discover-havells/investor-relation/codes-and-policies.html
P3: Human Resources Policies including Recruiting and Employment Policy, Leave Policy, Medical and Hospitalization Policy
– These are internal policies, available on Company’s intranet
P4: C
SR Policy - http://www.havells.com/en/investor-relations/Codes-and-Policies.html
P5: Human Rights Policy - http://www.havells.com/en/investor-relations/Codes-and-Policies.html
P6: IMS QEEHS Policy - https://www.havells.com/en/discover-havells/investor-relation/codes-and-policies.html
P7: No specific policy exists for this principle; however Havells actively participate in policy advocacy through its memberships
in various industry associations and forums.
P8: CSR Policy - http://www.havells.com/en/investor-relations/Codes-and-Policies.html
P9: Quality Policy- This is an internal policy available on Company’s intranet.
2a. If answer to Sr. No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
1 The Company has not understood the NA NA NA NA NA NA NA NA NA
principles
2 The Company is not at a stage where it finds NA NA NA NA NA NA NA NA NA
itself in a position to formulate and implement
the policies on specified Principles
3 The Company does not have financial or NA NA NA NA NA NA NA NA NA
manpower resources available for the task.
4 It is planned to be done within next six months NA NA NA NA NA NA NA NA NA
5 It is planned to be done within next one year NA NA NA NA NA NA NA NA NA
6 Any other reason (please specify) NA NA NA NA NA NA NA NA NA
3. Governance related to BR Business Responsibility Report:

(a)
Indicate the frequency with which the Board h ttps://www.havells.com/en/discover-havells/
of Directors, Committee of the Board or CEO to investor-relation/financials/annual-reports.html
assess the BR performance of the Company. Corporate Sustainability Report:
Within 3 months, 3 -6 months, Annually, More than
h ttps://www.havells.com/en/discover-havells/
1 year sustainability/reports.html

The Management assess the Business
responsibility performance periodically annually. SECTION E: PRINCIPLE- WISE PERFORMANCE
Principle 1
(b) Does the Company publish a BR or a Sustainability
Report? What is the hyperlink for viewing this 1.
Does the policy relating to ethics, bribery and
report? How frequently it is published? corruption cover only the company? Yes/ No. Does
it extend to the Group/Joint Ventures/ Suppliers/
As required under SEBI (Listing Obligations and Contractors/NGOs /Others?
Disclosure Requirements) Regulations, 2015
(LODR Regulations), the Company has been Policy relating to ethics, bribery and corruption is
publishing BRR from the FY 2016-17 onwards as applicable to all stakeholders (employees/ Vendors/
an integral part of the Annual Report. Customers) including Group Companies. The values
and conduct mentioned in its existing “Code of

Besides, the Company also publishes a
ethics for directors, senior management and other
voluntary Corporate Sustainability Report based
employees” is practiced by all of its permanent staff.
on internationally accepted Global Reporting
All the employees sign this Code at the time of joining
Initiative (GRI) Framework since FY 2012-13.
the Company. Every year, the board members and
Above reports are available on website of the senior management affirm compliance with this Code
Company: of Conduct. Further, the company has a separate
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“Code of Conduct for Vendors”, it is imperative that our aspects is getting further streamlined as we
Introduction 01-13
Vendors/suppliers, which we regard as our ‘Extended are already progressing with them in advance.
Enterprise’, conducts business respectfully in line As per voluntary measures we consider some
with the values and principles on which Havells itself major methods for measuring the performance,
respects and operates. such as, Wash performance, Rinse performance,
Energy consumption, Water consumption,
2.
How many stakeholder complaints have been Water extraction performance (residual water
received in the past financial year and what content), etc. Our products are Restriction of
percentage was satisfactorily resolved by the Hazardous Substances (ROHS) compliant which
management? If so, provide details thereof, in about makes them environment friendly. Also, E-Waste
50 words or so disposal process is communicated to the end
user in the User Guidebook for environment
During the FY the company received 4 (Four)
protection obligations.
complaints and 100% of the received complaints were
Integrated Report
satisfactorily resolved by the management.
Majority of our “ Semi-Automatic Washing Machine
(SAWM)” range is now 5 star rated as per Bureau
1. List up to 3 of your products or services whose
of Energy Efficiency (BEE). The Fully automatic
design has incorporated social or environmental
range is tested and falls under 5 Star category,
concerns, risks and/or opportunities.
under registration process. The Front loaders are
At Havells, we acknowledge that product design is being fine-tuned to achieve 5-star rating which
integral to our core business strategy and following will be completed before the stipulated date of
the path of sustainable development requires actual date coming into force of BEE regulations,
commitment, goodwill and passion for which addressing important aspects of Socio economic
14-44
we rely on nourishing ideas and innovation. Our responsibility.
products are designed and developed keeping in
mind their resource efficiency in their developing c)
Electrical wiring Accessories (EWA): Keeping
and use phase. Most of the products are energy in view the pandemic that caused huge setback
Statutory Reports
efficient. Our manufacturing facilities are certified to human health around the world, Havells
for implementing international system standards ISO was first in market to launch Anti-Fungal Anti-
90001, for Quality Management System, ISO14001 bacterial Switches and Sockets in Electrical
Environment Management System and ISO50001 Wiring and Accessories segment, ameliorating
for Energy Management System, etc. The 3 most existing Crabtree range at no additional cost.
innovative products are given below: The Nano sized inorganic metal oxide based
technology deployed offers “Safe Touch”
a)
Heat Pump Water Heaters: Our recently launched against transmission of harmful microbes
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Heat Pump water heaters work at high energy including fungi that cause healthcare associated
efficiency as compared to conventional water infections (HAI), impeding their proliferation
heaters. Their ‘Coefficient of Performance’ (COP) with an efficacy of 99.99%. Havells catapulted
is as high as 4, which means that for every single REO Elegant range of Electrical switches and Financial Statements
unit of energy input to the compressor of this heat sockets crafted for rural segment with advanced
pump, one would get 4 units of output energy engineered plastics, which is light weight, easy
as heat. This makes them 4 times more energy to process, recyclable offering, 30% energy
efficient than conventional water heaters. Thus, saving and environmental safety in production
with Heat Pump water heaters, a customer gets and after end of life.
an economical and effective water heating source,
with additional benefits of reduced environmental 2. For each such product, provide the following details
footprint. in respect of resource use (energy, water, raw
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material etc.) per unit of product(optional):

b)
Resource Efficient Washing Machines: The
(a) Reduction during sourcing/production/
Socio-economic responsibility is vital to Washing
distribution achieved since the previous year
Machine (WM) products and is given high
throughout the value chain?
prominence. All the products are validated to
comply Safety, performance and prevailing Our specific water consumption (Million Litres/
statutory regulations. With the Bureau of Revenue in Crores) has reduced to 0.010
Energy Efficiency (BEE) Certification program compared to 0.014 in FY 2019-20. For energy
coming into force from 1st Jan 2022, important efficiency initiatives please refer to the Annexure-9
parameters pertaining to socio economic of the Annual Report.
101
(b) Reduction during usage by consumers (energy, 5. Does the company have a mechanism to recycle
water) has been achieved since the previous products and waste? If yes what is the percentage
year? of recycling of products and waste (separately as

Being a responsible company, we believe <5%, 5-10%, >10%). Also, provide details thereof, in
in judicious use of natural resources during about 50 words or so.
manufacturing as well as during the use phase of
In our commitment to ensuring a greener tomorrow, we
products. Most of our product offerings are energy
efficient in nature. However, tracking of reduction at Havells strive to reduce and recycle our waste. We
achieved is not possible due to variable use of have a strong processes and system in place which
various equipment at consumer end. ensures that we minimise generation of waste. Around
95% of our non-hazardous waste is recycled and
3.
Does the company have procedures in place for reused. We also provide E-Waste take-back & recycling
sustainable sourcing (including transportation)?
services as per the applicable laws and guidelines. All
(a)
If yes, what percentage of your inputs was the domestic wastewater generated in our facilities is
sourced sustainably? Also, provide details recycled through the Sewage treatment Plants and
thereof, in about 50 words or so. treated water is utilized in development of greenbelt

Believing in responsible Sourcing, we are and plantation.
committed to ethical, legal, safe, fair and
environmentally responsible business practices.
Principle 3
As per company policy, signing of Product
sourcing Agreement (PSA) & Supplier code of 1. Please indicate the Total number of employees.
conduct is mandated before on-boarding of 5727
suppliers. We believe integrating sustainability
aspects at the stage of selecting a supplier
2. Please indicate the Total number of employees hired
covering financial health, statutory & regulatory
on temporary/contractual/casual basis.
compliances, energy & environment management,
safety & fire compliance, etc. 256 suppliers 12159
covering major purchase value in accordance
with sustainability drive. We further encourage 3. Please indicate the Number of permanent women
our supply chain partners to follow aspects of employees.
sustainable manufacturing in their business.
241
Our supply chain partners are key stakeholders
and are being updated on company policies,
4. Please indicate the Number of permanent employees
quality guidelines, business plan through various
with disabilities
engagement drives. Supplier are assessed based
on Quality, Cost, Delivery and Service parameters 02
on monthly basis and action plan is generated for
improvement. 5.
Do you have an employee association that is
recognized by management.
4. Has the company taken any steps to procure goods
and services from local & small producers, including No.
communities surrounding their place of work?
6. What percentage of your permanent employees is
If yes, what steps have been taken to improve their
(a)
members of this recognized employee association?
capacity and capability of local and small vendors?
Not Applicable.
With increasing business variants and to maintain
flexibility, Havells always intend to develop
suppliers in close vicinity of its manufacturing 7. Please indicate the Number of complaints relating
Plants. We are continuously working for exploring to child labour, forced labour, involuntary labour,
and selecting competent suppliers locally, thereby sexual harassment in the last financial year and
supporting government’s initiative of “Atmanirbhar pending, as on the end of the financial year.
Bharat Abhiyaan”. About 76% of total is sourced
from Local & Small Vendors. In our efforts to Nil, there were no complaints relating to child labour,
support Micro, Small and Medium Enterprise forced labour, involuntary labour, sexual harassment in
(MSME) in the reporting year we engaged with the last financial year and pending, as on the end of the
400+ MSME suppliers. financial year.
102
Sl. Category No. of No. of of our major interventions over the year includes,
Introduction 01-13
No. complaints complaints providing more than 3.4 lakh meals to needy, under our
filed during pending as extended mid- day meal programme through which we
the financial on end of the served about 60,000 students daily prior to pandemic
year financial year and distribution of more than 60,000 reusable sanitary
1 Child labour/forced NIL NIL napkins to the girls in view of better hygiene and
labour/involuntary sanitation.
labour
2 Sexual harassment NIL NIL Continuing its Chaanv program, of large-scale tree
3 Discriminatory NIL NIL sapling plantation, the company during the year has
employment planted 5 lakh tree saplings in Madhya Pradesh and
Rajasthan, totalling to more than 11 lakh tree saplings
8.
What percentage of your under mentioned over the course of last 3 years. Also, in view of promoting
employees were given safety & skill upgradation education, the company through Ashoka University
Integrated Report
training in the last year? provides support and assistance to build educational
infrastructure.
Total 1384 nos. of health and safety trainings and total

3034 nos. of skill up-gradation training were provided Principle 5
to the employees.
1. Does the policy of the company on human rights
Total 2682 nos. of permanent employees were provided cover only the company or extend to the Group/Joint
skill-upgradation training, out of which 2611 were males Ventures/Suppliers/Contractors/NGOs/Others?
and 71 were females.
At Havells, stakeholder engagement is a key pillar
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Total 217 nos. of permanent employees were given of sustainability that encompasses policies and
health and safety trainings, out of which 205 were programmes which supports internationally recognized
males and 12 were females. human rights and seeks to avoid human rights abuses.
We support the principles contained within the ILO

100% employees under disabled category were
Statutory Reports
Core Conventions on Labour Standards, UN Guiding
imparted safety & skill up-gradation training.
Principles on Business and Human Rights, Universal
Declaration of Human Rights. The policy on human
Principle 4
rights covers the company, its suppliers and contractors
1. Has the company mapped its internal and external and society.
stakeholders? Yes/No
Yes, the company has mapped its internal and external 2.
How many stakeholder complaints have been
stakeholders. received in the past financial year and what percent
was satisfactorily resolved by the management?
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2.
Out of the above, has the company identified
There were no complaints in the FY 2020-21.
the disadvantaged, vulnerable & marginalized
stakeholders.
Principle 6
Yes, the company has identified the disadvantaged, Financial Statements
vulnerable & marginalized stakeholders. 1. Does the policy related to Principle 6 cover only the
company or extends to the Group/Joint Ventures/
3.
Are there any special initiatives taken by the Suppliers/Contractors/NGOs/others.
company to engage with the disadvantaged,
The policies cover the company, suppliers and
vulnerable and marginalized stakeholders. If so, contractors.
provide details thereof, in about 50 words or so.
2.
Does the company have strategies/ initiatives
Being a responsible corporate citizen, we focus on

to address global environmental issues such as
taking everyone along in our journey of growth. Our
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climate change, global warming, etc? Y/N. If yes,

agenda of sustainability provides for key focus on
please give hyperlink for webpage etc.
Social responsibility and its delivery. We have in place
various social interventions that are aimed towards Yes, the company have strategies/ initiatives towards
betterment of community w.r.t Food and Nutrition, addressing the global environmental issues. Some of
Healthcare, Sanitation, Environment, Education, Skill the major Initiatives includes installation of 5.6 MW roof-
Development, etc. Our CSR program started way back top solar power plants to harness renewable energy,
in 2005 even when CSR was not mandated by law. large plantation programmes to sequester the CO2
Our initiatives are aligned to the various Sustainable emissions and adding value to biodiversity, maintaining
Development Goals given by United Nations. Some water positivity, etc.
103
3.
Does the company identify and assess potential 4. Indian Fan Manufacturers Association (IFMA)
environmental risks? Y/N 5. Water Quality Association
Yes, the Company has identified and assessed potential 6. United Nations Global Compact (UNGC)
environmental risks associated with its operations. 7. Confederation of Indian Industries (CII)
8. PHD Chamber of Commerce and Industry
4. Does the company have any project related to Clean
Development Mechanism? If so, provide details 9. National Safety Council
thereof, in about 50 words or so. Also, if yes, whether
any environmental compliance report is filed? 2.
Have you advocated/lobbied through above
associations for the advancement or improvement
No, the company do not have any project related to of public good? Yes/No; if yes specify the broad
Clean Development Mechanism. areas (drop box: Governance and Administration,
Economic Reforms, Inclusive Development Policies,
5. Has the company undertaken any other initiatives Energy security, Water, Food Security, Sustainable
on –clean technology, energy efficiency, renewable Business Principles, Others)
energy, etc. Y/N. If yes, please give hyperlink for web
page etc. No.
The company believes that climate change is a defining Principle 8

issue of our time and we must act responsibly to 1.
Does the company have specified programmes/
mitigate its impact. Various initiatives have been taken initiatives/projects in pursuit of the policy related to
by the company in view of aspects of clean technology, Principle 8? If yes details thereof.
energy efficiency, renewable energy, etc. Some of the
major initiatives includes, rainwater harvesting at Sites, Yes, our strategy of doing business is supported
sewage and effluent treatment plants for recycling by our careful concern towards society. We believe
wastewater, captive solar power plants with total that community is an integral part of any business to
capacity of 5.6 MW, etc. More initiatives can be found exist and grow. Our various interventions under CSR
in our sustainability reports at- https://havells.com/en/ initiatives have been part of our larger contribution to
discover-havells/sustainability/reports.html social sustainability.
6. Are the Emissions/Waste generated by the company 2. Are the programmes/projects undertaken through
within the permissible limits given by CPCB/SPCB in - house team/own foundation/external NGO/
for the financial year being reported? government structures/any other organization?
All the Emissions/Waste generated by the company Our programmes/initiatives undertaken towards
are within the permissible limits given by the regulatory welfare of community are strategically designed
bodies for the financial year being reported. and implemented. To drive the maximum value for
the society, we believe in doing things on our own
7. Number of show cause/ legal notices received from and through external partners like NGOs, Govt.
CPCB/SPCB which are pending (i.e. not resolved to bodies, etc.
satisfaction) as on end of Financial Year.
3.
Have you done any impact assessment of your
Nil. initiative?
Principle 7 No.
1. Is your company a member of any trade and chamber 4.

What is your company’s direct contribution to
or association? If Yes, Name only those major ones community development projects Amount in INR
that your business deals with: and the details of the projects undertaken.
Yes the company is member of various trade and Our approach to implement programmes and initiatives
chamber associations, some of the major are listed for welfare of community has been in place even when
below: corporate social responsibility was not mandated by
1.
Indian Electrical and Electronics Manufacturers law. Our contributions largely lie in the areas of nutrition,
Association (IEEMA) sanitation infrastructure, female hygiene, environment
2.
Electric Lamp and Component Manufacturers conservation and education.
Association of India (ELCOMA) Expenditure and other details for the above said
3.
Consumer Electronics and Appliances interventions are provided at page 83-87 of the annual
Manufacture Association (CEAMA) report.
104
5. Have you taken steps to ensure that this community 3. Is there any case filed by any stakeholder against
Introduction 01-13
development initiative is successfully adopted by the company regarding unfair trade practices,
the community? Please explain in 50 words, or so irresponsible advertising and/or anti- competitive
Our efforts towards betterment of society through behaviour during the last five years and pending
various interventions are being successfully adopted as on end of financial year. If so, provide details
by the community. Our flagship programmes like thereof, in about 50 words or so.
distributing Mid-day meal to around 60,000 students
During the year we did not receive any such
daily, Distribution of re-usable sanitary pads to more complaints.
than 60,000 girls in the year and providing funding
to educational institutes to promote education have
4. Did your company carry out any consumer survey/
helped created positive impact in the society.
consumer satisfaction trends?
Principle 9 Yes, we carry out periodic survey for our customers

1. What percentage of customer complaints/consumer & Partners to analyse the satisfaction level using Net
Integrated Report
cases are pending as on the end of financial year. Promoter Score (NPS) methodology. We achieved an
NPS score of 64% and average survey undertaken

During the year, we have received 59 complaints relating
were over 10,000 per month since August 2020 for this
to minor product defects, of which 9 have already been
Fiscal, as activity was suspended from April- July 2020
resolved/ closed and 50 are in the process of being resolved.
due to pandemic lockdown.
2.
Does the company display product information on the
product label, over and above what is mandated as per
local laws? Yes/No/N.A. /Remarks (additional information).
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Yes, the company display product information on the
product label as per applicable rules & guidelines.
Statutory Reports
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142-309
105
Management Discussion and Analysis

The events of 2020 tested the resilience of our business • Home: Work from home (WFH) has channelised greater
model, people and financial strength. The pandemic has awareness around home, garnering better share of the
been ferocious, unrelenting and unprecedented in its scope wallet. There seems to be higher demand for housing
and coverage. In face of such uncertainty, we relied on products including new and additional housing. It is
our established tenets of communication, engagement, early to conclude whether the real-estate cycle has
positive support and team working to tide over challenges. revived though green shoots are visible in the sector
The satisfactory outcome has further affirmed our resolve to which augurs well for Havells portfolio.
deepen our principles of sustainability, technology & trust
with exceptional standards of governance. Our strategy:
• Availability, Assurance and Affordability: Havells has
Industry trends and relative position emerged as a bellwether being a trusted brand with
growing footprint having innovative and large product
The electrical industry has immense growth potential
basket. We plan to continue the portfolio expansion in
especially considering the increased penetration of
the relevant categories building on the trust established
electricity and home improvement drive. Historically, the
with the trade channel and consumers. We maintain
industry has high incidence of unorganised suppliers. Over
and expand the markets through retail penetration, high
the years, there has been a gradual shift of demand from
quality standards and manufacturing scale respectively.
unorganised to organised, Covid has in fact accelerated this
We are further focussing on price laddering with Reo
process. It was seen that supplies in the unorganised space
covering the affordable housing and rural channels.
were disrupted severely due to Covid led challenges such
as working capital shortage, unavailability of labour, gaps • Transitioning skill set: Havells has been investing
in supply chain and alike. Further, the imported supplies in people, developing existing manpower and
were adversely impacted, causing disruption for those who accumulating fresh talent to have a workforce which
infiltrate the market with substandard imported items. is apt for changing consumer preferences. Over
the years, the product portfolio has evolved and so
In this environment, Havells having extensive manufacturing has the expectations from product development and
base with backward integration could seize the opportunity. customer service teams. We are able to appreciate and
We believe channel partners tend to have long-term adapt to the different dynamics between the customer
sustainable relationship with company such as Havells who expectations from a sturdy product like cable and a
can ensure continuity in supply of fast moving goods. The daily rugged product like mixer grinder.
preference of end consumers is also structurally shifting
towards branded and good quality products which augurs • Technology adoption: Technology is ubiquitous in
well with our strategy to continue investment in R&D, brand every aspect of doing business. We embrace and
building and manufacturing. accelerate technology in everything we do. Automation,
simplification and data integrity are key drivers for
We have a robust infrastructure to support our aspirational acceleration in tech adoption. We are constantly
growth and we are further committed to continued investment working on positioning every Havells product as tech-
towards R&D, talent acquisition and manufacturing. Havells enabled and future-ready. The entire ecosystem with
believes in self-reliance for its manufacturing requirements. stakeholders viz. employees, dealers and vendors is
through online platforms and mobile apps.
Structural boosters
• Sustainability: A sustainable growth is at the core
• olicy: The central government has recently announced
P of Havells’ philosophy. It is a multifaceted endeavour
its intent to give production linked incentives (PLI) to inculcating the long-term interests of each stakeholder
promote manufacturing in India. PLI is an extensive, including the society, customers, local communities
investment-based, time bound incentive module which and shareholders. The decisions are predicated on
can trigger a virtuous capex-led demand cycle. It may enduring business model, with proportionality, balance
not immediately reflect in demand yet a fairly positive and fairness and to impart a positive impact on our
development for industry. The government has also stakeholders. We believe in what’s good for society is
notified PLI scheme for air-conditioners and lighting. good for business.
We are in the process of reviewing details and seeking
clarifications from the concerned ministry before we • I nflationary trends: Past few months have seen sharp
finalise our plans. increase in the commodity prices leading to increase in
106
cost of products. While we have been able to pass on Few events were first of its kind for the industry where
Introduction 01-13
most of the impact of cost increase to the customers, we connected with the family members of our Channel
the full impact is yet to be reflected. We are evaluating Partners.
alternate materials to reduce costs as also improve
productivity to minimise incidence of asymmetric rise • rihalaxmi - 2k+ spouses of our Channel Partners
G
in commodities on our pricing and profitability. joined us for an informal interaction on importance
of women in home & family business.
Business Growth Levers: • YEF (Young Entrepreneurs Forum) - The upcoming

(A) KEY GTM INITIATIVES: younger generation of our Channel partners

Havells has constantly maintained its position in bonded over a motivational session with Mr. Sonam
the industry with a growth mindset driving channel Wangchuk wherein our CMD also introduced our
expansion, improved sales phasing, engagement Company’s vision & culture.
with employees & seamless communication with all
• Product launches - During the year, we had several
Integrated Report
stakeholders by leveraging digital technology at scale.
digital events of product launch for Refrigerators,
Air conditioners and Fans. These events were
SMALL DEALER ACTIVATION attended by more than 1 lakh channel partners.

Dealers doing limited business with Havells but
otherwise having high growth potential were identified. REGISTRATION PROCESS AUTOMATION
Detailed information was gathered including digital We leveraged the technological tools to continue
survey on SFA & basis the diagnostics, 4 stage with our business without interruptions as right from
programme was devised and implemented to support registration to order booking to query resolution was
14-44
their business with Havells, resulting in an encouraging possible digitally.
overall growth.
A completely paperless process to help our channel
IMPROVED SALES PHASING partners & influencers to quickly initiate their sales
transactions with Havells was also launched. All
Statutory Reports
Covid gave an opportunity to reflect upon our sales
direct Channel Partners were enrolled through Online
phasing wherein it was realised that the sales skew
Customer Registration (OCR). All indirect Channel
usually is towards later part of the month. Initially
Partners & Influencers were onboarded in Sampark &
a conscious effort was made to communicate the
E-Plus via Sales Force Automation App (SFA)
concept of uniform billing also termed as ‘daily billing’
but later this became way of life at Havells now. Both the ORDER BOOKING AUTOMATION
sales team as well as channel partners latched on the
Order booking portal though an initiative taken two
practice as it not only made supply chain more efficient
years ago, had come in very handy during the social
45-141
but also gave an opportunity to the trade partners to
distancing era. During Covid, trade partners were able
grow more with improved working capital cycle.
to continue their business transactions by booking their
orders digitally through Havells mKonnect Mobile App
LIVE DIGITAL EVENTS & Dealer Portal. Currently 96% of the orders from our Financial Statements
As part of the Havells culture, we always like to maintain trade business are through these digital portals bringing
a transparent channel of communication with our in greater transparency, accuracy and efficiency.
stakeholders; especially with our Channel Partners. We
were quick to adapt to the new normal where physical This year, we have launched order booking functionality
meetings weren’t feasible, so we switched to digital for our Indirect Channel Partners also facilitating
platforms and continued our dialogue to keep them seamless order booking experience through Retailer
informed and engaged. App (Sampark)
Havells has conducted multiple digital events with its (B) SEMI-URBAN AND RURAL:
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partners, employees, and consumers during the year. In the recent years, there has been a significant
Participants attending these events were engaged improvement in power supplies to rural areas due to
keeping in mind the theme of event. Events were hosted Government’s rural electrification programmes. Apart
by our CMD Mr. Anil Rai Gupta along with a celebrity from this, increasing telecom and internet penetration
(selected as per the target audience). has also created an awareness for good quality
products in rural markets. Havells with a large range
We had conducted 6 distinguished events including of electrical products backed by R&D investments and
product launches covering 1,72,000+ participants manufacturing capabilities is well placed to capture
(including Channel Partners & consumers) rural markets.
107
Havells’ approach is to focus on consumers in towns past few years especially for the Electrical consumer
with population between 10,000 and 50,000 and delight durable (ECD) portfolio. Our offering to E-commerce
them with our products and services. New category platforms are in such a way that the prices and terms
segments launched this year includes Personal of trade are in sync with the offline channel. Covid-19
Grooming, Water Heater and Capacitors. This is in has presented an opportunity to have higher growth
addition to so far launched categories of switchgears, aspirations from this channel since the online traffic
wires, lighting, fans and appliances. has increased significantly. Thrust in the demand for
products like personal grooming, fans, small domestic
Last year, the Covid-19 pandemic led to disruption in the appliances and water heaters have helped to almost
conventional supply chain which impacted all. However, double the revenue from E-commerce. We plan to
it was seen that Rural Markets were more resilient and strengthen the brand position for these products
showed a quick recovery in terms of demand. and expand the offering with LED Lighting and large
consumer appliances such as Air Conditioners,

Havells has now reached 2,500+ Rural towns with a Refrigerators and Washing Machines.
numerical reach of more than 28,000 outlets. The plan
is to reach 3000+ towns within the next financial year Havells also took the opportunity to expand its direct
with a retail footprint of 40,000+ outlets. to consumer (D2C) online business by incepting its
own O2O (online to offline) model. The objective was
(C) E-COMMERCE: to give opportunity to the offline trade partners to also

Havells has an omnichannel approach and accordingly participate in the spurt of online business. This would
E-commerce has been part of the mainstream for the generate additional business to the trade partners from
108
online orders, enhance hyper-local network around primarily driven by our vision to secure our technology
Introduction 01-13
dealers, increase in consumer data for the local area future and leverage R&D as a key differentiator for our
and accelerate sales in the slowdown period. products.
While we are already among the top three brands on Our emphasis has been to democratise technology
the online platforms in few of the product categories, making it amenable to our vast consumer base by
the potential which E-commerce channel offers is huge delivering customer value propositions – be it in
and we will continue to expand our online presence in terms of incremental innovations for our existing
tandem with the offline channel expansion. product portfolio or creating new platforms that form
the common basis for new products. Despite the
(D) EXPORTS: adversities that came along with COVID last year, we
Exports has been one of the priorities for Havells and stayed focussed on our vision of being a company
with supply chains evolving post Covid-19, international recognised as an early adopter of new technologies
business is at its inflection point. Many large with agility to launch innovative products addressing
Integrated Report
organisations around the world are looking beyond explicit and latent needs of our customers.
China. Havells, with its brand strength, manufacturing
base and R&D capabilities is well equipped to take
Our three-pronged strategy for R&D is focussed on (1)
advantage of this opportunity.
end-to-end (concept to end-of-useful life) responsibility
for our products; (2) self-reliance for all critical
Havells is a well-recognised brand in the Indian sub-
technologies, and (3) technologically differentiated
continent & Africa, backed up with 40+ international
innovative products. This helped us bring several
certifications. We are present in 60+ countries across
“industry first” innovations to the market. To name a
SAARC, Middle East, Africa and Asia. We are investing
14-44
few: (a) Silencio, backed by four patent filings branded
strongly on new product development especially on
as industry’s quietest mixer grinder with 50% less
Air-Conditioners and Switchgears to fill the product
perceptible noise, (b) Carnesia-I and Stealthwood-I
gaps for international markets. Specific focus is on
fans with integrated smart sense technology to
penetrating newer geographies and large customers.
Statutory Reports
intelligently regulate fan speed based on temperature
With these initiatives, International business reported
and humidity thus delivering maximum comfort, (c)
growth of 14% over last year.
16A Smart Socket and smart accessories for home
(E) ENTERPRISE BUSINESS: automation, (d) Intellilogic – country’s first AC with
energy-efficient simultaneous control of temperature

Enterprise business though interwoven with the
and humidity. We are extremely proud of the fact that
respective segments maintains a focussed approach
the technology building blocks for these products are
towards projects in Residential, Government, Industrial
being developed in-house by our innovation centre in
and Commercial segments. The growth drivers for
Bengaluru. All our future smart product developments
45-141
these segments has been the augmentation and
are being built using our own in-house developed IoT
improvement in the transmission and distribution
platform – tested and proven to be highly secure with
networks, Government’s initiatives on smart cities &
data hosted entirely in India.
focus on affordable housing etc. Financial Statements
‘Prescription’ approach has been adopted to expand

Segment-wise Overview including industry
the footprint in the specifier segment constituted structure, developments and outlook
by Architects and Consultants. This has helped us • Switchgears
participate in several prestigious projects in the Private Havells’ switchgear portfolio offers a complete range
and the Government sectors including smart city for Circuit protection for the rapidly urbanising Indian
projects. We are currently working closely with 1,500+ market. Though the real estate sector has been
end customer accounts and 2,000+ Architects and generally underperforming over the last couple of
Consultants.
142-309
years, however uptick in residential and commercial

construction and ongoing electrification programmes

Enterprise Business Approach has been a key
of Government would support growth of switchgear
contributor to the business generated across business
market.
units, getting approvals for the basket of products &
solutions and steadily consolidating the B2B base.
Havells continues to invest in R&D and introduced
technology-driven, operationally efficient products like
(F) RESEARCH & DEVELOPMENT (CRI): SPD, PV range, Industrial Plug and socket and modular
We continued to strengthen our strategic positioning of contactor which have received excellent response. Havells
R&D – a journey that we embarked upon three years ago R&D is developing new range of MCCB & ACB to capture
109
Leverage
SMART Flagship offer
Communication to drive Trade
range dominance
the expanding Government and private infrastructure expansion of semi-urban and rural markets. While
sector along with IOT-enabled communication capable the unorganised sector faced challenges in supply
MCBs, RCCBs and Energy meter. chain, Havells was able to leverage its manufacturing
capacity spread over four units to produce and feed
Electrical Wiring and Accessories which is part of the the requirement of the market.
switchgear segment is primarily constituted by modular
& non-modular switches and accessories. Havells The Switchgear division registered net revenues at
competes in this market with four brands – Crabtree, ` 1,461 crores during FY 2020-21 with contribution
Havells, Standard and REO addressing the distinctive margins at 39.8% compared to net revenues of
customer segments with differentiated go-to market
` 1,339 crores with contribution margins at 41.0%
approach. Crabtree competes in the luxury and B2B
during FY 2019-20.
segments, Havells and Standard are addressing the
mass premium and value plus segment while Reo
• Cables
brand addresses fastest growing affordable customer
segment. With slew of new product launches, over the Due to the pandemic, first half of the year was
past 3 years, Havells has been gaining market share. challenging for the Indian Cable & Wire Industry as the
demand from Industrial and Infrastructure segment was
Post Covid there was sharp recovery in demand owing severely impacted and the recovery in housing sector
to our comprehensive product basket and focus on was tepid. The second half of the year though has been
110
Introduction 01-13
India’s first Anti-viral
New All-Weather range
switches
with WeatherPruf tech
Integrated Report
14-44
Statutory Reports
promising supported by positive demand sentiment in compliant lighting solutions and smart cities are the
the residential segment and revival of Infrastructure new growth drivers for LED lights in the urban sector.
projects. Havells was able to register a healthy Havells is well placed in the Smart lighting segment with
performance owing to one of the largest network of a strong product profile, well-entrenched trade network
highly engaged channel partners, introduction of digital along with supportive Consultants, Contractors,
platforms and our recently revamped manufacturing Specifiers & ESCOs.
45-141
capacity at Alwar.
avells has a strong presence both in Consumer lighting
H
The infusion of fund by the Government in infrastructure and Professional luminaire market segment. Focus is on
projects, implementation of strict RERA norms in real Innovation, Brand building and customer engagement. Financial Statements
estate and push for schemes such as ‘AatmaNirbhar Specialised lighting design offering such as Tunnel
Bharat’ and Saubhagya would help sustained demand Lighting, Facade & Landscaping Lighting, Smart
for wires and power cables. Lower interest rate regime lighting Solutions and Highway lighting designs are also
for home loans is expected to spur the first-time home expected to be growth drivers.
buyers and the affordable home segment.
Lighting is the spearhead product in Havells’ journey of
The Cables division registered net revenues at ` 3,180 expansion into rural markets.
crores during FY 2020-21 with contribution margins at
142-309
16.3% compared to net revenues of ` 2,994 crores with

The Lighting and Fixtures division registered net
contribution margins at 16.3% during FY 2019-20. revenues at ` 1,085 crores during FY 2020-21 with
contribution margins at 31.3% compared to net
• Lighting and Fixtures revenues of ` 1,014 crores with contribution margins at
LED Lighting Industry has been growing with investment 30.1% during FY 2019-20.
in infrastructure, commercial spaces and residential
demand. Government’s drive towards demand side • Electrical Consumer Durables
electricity management has supported in adoption of Improving comfort and décor at home has now become
LED lighting in India. Demand for smart lighting, IoT the highest priority among the household and consumer
111
ENVIRONMENTAL LIGHTING
Avian Life
Marine Life
Mood
Setup
Environmental lighting - “GO SOFT”
on wildlife
durable industry is adopting to the associated changes with contribution margins at 25.1% compared to net
in consumer behaviour. Products like fan, water heater revenues of ` 2,005 crores with contribution margins at
are no longer just necessity but are also seen as an 26.1% during FY 2019-20.
important part of Home décor driving premiumisation.
Modern design and technologically advanced models Fan Purifier
are gaining popularity.
Post covid, the In-Home Focus towards health and

hygiene and ‘Do It Yourself’ (DIY) have given a big
thrust to the Kitchen appliances and Personal grooming
portfolio. Havells continues to broaden its reach and
portfolio in these segments, the expansion strategy
includes:
• Omnipresence: Strong presence in all key

E-commerce platforms: Horizontal as well as vertical
• Deeper distribution: Leveraging both urban and

rural channel
• xpanding Non-Trade Presence: Canteens and

E
Modern format retail
• Multiple India Multiple Opportunities: Expanding

the addressable base with Geography / Consumer Carnesia I: IoT-based Smart Ceiling Fan
need-based product launches such as ‘Thalaiva’
a super speed fan launched for Tamil Nadu, Wet
Grinder catering to the cooking needs of South
and Instant water heaters catering to Western
India
Innovation has always been core to our offerings,

exciting the customer with aspirational products. Some
of recent launches such as Fan with inbuilt Air Purifier,
Feeling Fan range of smart IoT fans which can sense
temperature / humidity & adjust speed, Induction-based
water heater and Low noise mixer grinder Silencio are
testaments of the inhouse innovation capabilities.
The Electronic Consumer Durables division registered

net revenues at ` 2,377 crores during FY 2020-21
112
• Lloyd Consumer retail. In the last two years, entry into large retail chains
Introduction 01-13
With the structural improvements undertaken in Lloyd in the has been a priority as it helps premiumise the brand and
last two years, the brand is now moving confidently towards increase customer reach. Lloyd is now present in most
being an aspirational consumer durable brand with a of the national and regional retail chains. We are also
comprehensive portfolio. Consumer durables present a making concerted efforts to build strong presence on
vast opportunity for the ‘deeper into homes’ strategy. E-Commerce platforms for Lloyd products going forward.
With own manufacturing facility of Air Conditioners The Lloyd Consumer division registered net revenues
(AC), Lloyd is well placed to take advantage of the at ` 1,689 crores during FY 2020-21 with contribution
opportunity created by prohibition on import of gas- margins at 12.7% compared to net revenues of
filled ACs. In order to cater to the aspirational growth in ` 1,590 crores with contribution margins at 10.6% during
both domestic as well as export markets, Havells has FY 2019-20.
decided to setup its second AC manufacturing facility
Integrated Report
in Sricity, Andhra Pradesh. Opportunities and Threats:
Infrastructure investment: Government’s focus on
(A)
With improved trade confidence, Lloyd has entered
Infrastructure developments such as roads, railways,
Refrigerator category which is biggest sub segment
ports, housing is expected to create demand for
of the home appliances industry having market Size of
electrical goods such as Cables, Switchgears and
12.5 Million Units with value of ` 20,000 crores. Lloyd
Lighting. Slowdown in the infrastructure activities may
has launched a wide range of models both for Direct
impact the near to mid-term growth prospects for
cool and Frost-free segment. The products are Made in
Industrial and Infra segments.
India with superior quality and aesthetics.
14-44
Encouraged with the performance of Washing Favourable demographics: Favourable demographic
(B)
machines, Lloyd is setting up facility to manufacture indicators like urbanisation, young aspirational
own patented design semi-automatic machines population, increase in disposable income of
Statutory Reports
in Ghiloth Rajasthan with a capacity of 3 lakh individuals, aspiration for good quality branded
units p.a. products, nuclear families etc. are expected to
catalyse the growth for electrical and electronic goods.
Lloyd has been expanding its distribution reach both in Economic slowdown may impact disposable income
the traditional channels as well as in the modern format resulting in low consumer sentiment.
Ladakh
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Jammu &
Kashmir
Himachal 1 Grande Heavy Duty

Pradesh
Punjab Uttara
-
Khan
d
a
yan
Delhi
Har
sh
rade
al P
ach
Sikkim Arun
Rajasthan Uttar Pradesh
Assam
Nagaland
Bihar Meghalaya
Manipur
Jharkhand Tripura
Gujarat West Mizoram
Madhya Pradesh Bengal
rh Hot & Dry
sga
Daman atti
& Diu Chh
Odisha
Dadra & Nagar Haveli
142-309
Maharashtra 2 Intelli-Logic AC
Telangana
Goa Andhra
Pradesh
Karnataka
Puducherry
Lakshadweep Andaman and Nicobar Islands

Tamil
Ker
Nadu
ala
Hot & Humid
Hot & Dry Hot & Humid
113
Electricity penetration: India has seen rapid growth in

(C) focus and Investment and exposure to a degrowing
access to electricity in deeper pockets and improvement segment to impact the overall performance.
in quality of supply in urban and semi-urban geographies.
Various Government schemes are focussed towards the Risk and Concerns:
mission of ‘electricity for all’ and reducing transmission (A) Economic slowdown: Slowdown in the Indian
loss of electricity. This has created opportunity for economy due to global developments could adversely
the Company to expand into Rural and Semi-urban impact growth in the short-term.
markets. Any reduction on Government expenditure on
electrification might impact the Rural vistaar. (B) Commodity inflation: Sharp increase in commodity
prices could lead to increase in cost of finished goods
Under penetration: Majority of consumer facing
(D) impacting the affordability and consumer sentiment.
products in India have lower penetration vis-à-vis other
emerging countries. It is expected that increase in per lower than expected pick-up in housing: Demand
(C) S
capita income and yearning for comfort could lead to for new housing has been sluggish since couple of
exponential rise in penetration in medium-to-long term years. Continued weak demand for housing could
timeframe. However, under penetration could lead to impact demand for electrical goods.
hyper competitive environment due to smaller pie.
Increase in competition: Hyper competitiveness is
(D)
Exports: The world market is evaluating Indian
(E) normal, but it becomes a risk in case it leads to irrational
companies as an alternative to other Asian countries. behaviour in the market in terms of pricing and other
Having a large manufacturing base, gives an trade practices.
opportunity to capture the export market especially the
developing countries in Africa and South East Asia. (E)
Non-availability of regular and quality power:
Global economic slowdown led due to pandemic or Availability of quality electricity is the key for demand
other factors might reduce the growth opportunity. of electrical products, any substantial shortfall in the
supply of electricity may hamper growth prospects for
Product basket: Having a large product basket across
(F) the industry.
Industrial & Infrastructure and Consumer & Residential
segment is a great opportunity to increase the shelf (F) Pandemic: Deterioration in supply chain and demand
space at the retail counter and share of wallet of the due to pandemic such as COVID-19 have emerged
consumer. It increases the chances of disproportionate as a significant business risk. Strong supply chain
gain when the consumer sentiment is positive and system with robust digitisation and interlinking of
serves as a natural hedge in case of economic various divisions is the need of the hour to tackle similar
downturn. Management of Large basket requires situations in future.
114
Key financial ratios:
Introduction 01-13
The key financial ratios are given as below:
Ratio FY 2020-21 FY 2019-20 Explanation to significant change wherever applicable
Debtors turnover (times) 25.67 28.02
Inventory turnover (times) 4.64 4.97
Interest Coverage Ratio (times) 18.12 41.05 Increased interest cost on account of increase in borrowings
led to change in interest coverage ratio
Current Ratio (times) 1.92 1.49 Current ratio is higher due to increase in inventory which
was mainly increased as a conscious effort to cater to
forthcoming season
Debt-Equity Ratio (times) 0.10 0.01 Variance in debt-equity ratio is on account of bank facilities
availed during the year to meet Covid-led exigencies
Operating Profit Margin (%) 15.0% 10.9% Substantial improvement in margins and profitability is
7.8% owing to cost efficiencies and operating leverage
Integrated Report
Net Profit Margin (%) 10.0%
Return on Net Worth (%) 22.0% 17.3%
Note: For the purpose of calculating interest coverage ratio and operating profit margin, EBIT and EBIDTA have been considered before
other income.
Financial Performance accorded to people immediately post lockdown. As the

The key highlights of financial performance is as under: things started to ease, proactive measures for employees
were undertaken like, workplace SOPs, awareness
14-44
• otal revenue for FY 2020-21 was ` 10,428 crores
T sessions, roster facilities to suit the age and proximity-
compared to ` 9,429 crores in the previous FY 2019-20. related requirements of our workforce etc. Similarly, our
• arnings before interest, depreciation, tax and
E factories resumed operations with robust hygiene norms
and considering all the social-distancing regulations.
Statutory Reports
amortisation (EBIDTA) for FY 2020-21 was ` 1,565
crores compared to ` 1,027 crores in the previous
FY 2019-20. Despite the challenges of the pandemic, Havells participated
in the ‘Great Place to Work Assessment’ during the year. It
• rofit before tax for FY 2020-21 was ` 1,432 crores
P was certified as a ‘Great Place to Work’ for the second year
compared to ` 902 crores in the previous FY 2019-20. in succession. The organisation has also been recognised
• Profit after tax for FY 2020-21 was ` 1,040 crores among ‘India’s Best Workplaces in Manufacturing 2021’–
compared to ` 733 crores in the previous FY 2019-20. Top 30.
45-141
• he Board of Directors of the Company has approved
T In our commitment towards building an eco-friendly &
Final Dividend of ` 3.50 per equity share, making a total efficient workplace, we have digitalised our various HR
dividend of ` 6.50 per equity share for the financial year processes through e-recruitment, e-appointment letter,
2020-21, including interim dividend of ` 3.00 per equity e-boarding, e-separation and moved towards a paperless
share declared earlier during the financial year 2020-21.
working. This has enhanced process efficiencies with
secured and faster transfer of information. Our Performance
Material developments in Human Resources/ Management Process and discussion at various levels has
Industrial Relations front: helped employees get developmental feedback.
At Havells, we are committed to sustainable work practices
and a transparent work culture. Our standing as an exciting The Company had a total of 5,727 permanent employees as
and enriching workplace attracts some of the most talented on 31st March, 2021.
people in the industry. The year gone by brought many
Internal Control Systems and Their Adequacy
142-309
challenges owing to Covid led disruptions which posed

serious threats to the entire mankind. Amidst all these The Company has robust internal financial controls (IFC)
thought-provoking scenarios, we leveraged use of digital systems, which facilitates orderly and efficient conduct of
assets to connect with various stakeholders, including its business including adherence to Company’s policies,
our employees. IT tools were optimally utilised for skills safeguarding of its assets, prevention and detection of
enhancement and training of employees when most of the frauds and errors, accuracy and completeness of the
business activities were standstill everywhere. accounting records and timely preparation of reliable
financial information. The internal control system ensures
Maintaining balance between safety of employees and compliance with all applicable laws & regulations, key
business continuity, Work From Home (WFH) facility was controls, significant business challenges, fraud prevention
115
and controls. Our internal control system facilitates in Vigil Mechanism: The Company also has a very strong
optimum utilisation of available resources and protect the Whistle blower policy in place under the name “Satark”,
interests of all stakeholders. whereby a forum is available for all Employee(s), business
associate(s) engaged with the Company who can report
The Company has a clearly defined Policies, Standard any fraud, irregularity, wrongdoing and unethical behaviour.
Operating Procedures (SOP), Financial & Operation The Policy provides that the Company investigates
Delegation of Authority (DOA) and organisational structure such reported matters in an impartial manner and takes
for its business functions to ensure a smooth conduct of its appropriate action to ensure that requisite standards of
business across the organisation. We leverage technologies confidentiality, professional and ethical conduct are always
in processes standardisation, automation and their controls. upheld. Any complaint received under Satark policy are
even mapped to the Chairman of the Audit Committee.
SAP GRC (with respect to Access control) has been
This Satark policy is also available on the website of the
implemented which also takes care of users’ conflict relating
Company www.havells.com.
to Segregation of Duties (SOD). COSO (The Committee of
Sponsoring Organisations of the Treadway Commission)
framework is considered as a self-benchmarking for
Disclaimer Clause
Company’s Enterprise Risk Management. Non-compliance, Statements in the Management Discussion and Analysis
if any, is seriously taken by the Management and corrective Report describing the Company’s objectives, projections,
and preventive actions are taken immediately. estimates, expectations may be “forward-looking
statements” within the meaning of applicable securities
Risk-based Internal audit is performed, basis which laws and regulations. Actual results could differ materially
significant audit observations and follow-up actions from those expressed or implied. Important factors that
thereon are reported to the Sub Audit Committee and Audit could make a difference to the Company’s operations
Committee. The Audit Committee reviews adequacy and include economic conditions affecting demand/supply
effectiveness of the Company’s internal control environment and price conditions in the domestic and overseas
and monitors the implementation of audit recommendations, markets in which the Company operates, changes in the
including those relating to strengthening of the Company’s Government regulations, tax laws and other statutes and
risk management policies and systems. incidental factors.
116
Corporate Governance Report
Introduction 01-13
In terms of Regulation 34(3) read with Section C of SCHEDULE V to SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended, a Report on Corporate Governance for the year
ended 31st March, 2021 is presented below:
(1) A Brief Statement on Listed Entity’s Philosophy We uphold the policy of “Leadership with trust” that has
on Code of Governance come to play a vital role in how our customers perceive
Who we are is defined by what we do and how we do us. This is important, given the climate of unparalleled
public distrust of people in positions of power and

This simple philosophy underlines our approach to
authority in contemporary business and politics.
Corporate Governance. So, if growth is our intention,
Integrated Report
how we achieve this growth is a part of our Corporate (2) Board of Directors
Governance. For us, Corporate Governance goes The Board of Directors has an optimum combination
beyond philanthropy and compliance but actually deals of Executive and Non-Executive Directors with Two
with how we manage our triple bottom lines – economic, Woman Directors and fifty per cent of the Board of
social and environmental impacts. It monitors our role as Directors comprises of Non-Executive and Independent
well as the quality of our relationships in key spheres of Directors. The Chairperson of the Board is an Executive
influence including the workplace, the market place, the Director. The profiles of Directors can be accessed on
supply chain, the community and the public policy realm. the Company’s website at https://www.havells.com/en/
14-44
As a Company, we distinguish ourselves in the market aboutus/directors.html
by offering a portfolio of ecologically responsible The Board meets atleast 4 (Four) times a year and more
electrical products and services that deliver powerful, often if Company needs merit additional oversight and
sustainable and energy efficient solutions that do not guidance. During the Financial year 2020-21, the time
Statutory Reports
compromise on capacity or security. gap between any two board meetings did not exceed 120
Our eco-friendly approach is evident in our efforts to (One Hundred and Twenty) days. The Board of Directors
develop an alternate energy strategy so as to reduce the periodically reviews compliance reports pertaining to
environmental impact from our business. We are equally all laws applicable to the Company. All statutory and
committed to managing a responsible supply chain in other matters of significance including information as
a manner that is consistent and compliant with our high mentioned in Part A of Schedule II to the SEBI (Listing
standards for environment and business practices. Obligations and Disclosure Requirements) Regulations,
2015 are informed to the Board to enable it to discharge
45-141
We recognise that there are barriers that constrain its responsibility of strategic supervision of the Company.
innovation, both, in individuals and communities and
we work to overcome them. We build communities Tenure of Independent Directors
and promote the exchange of ideas through The Board has adopted the provisions with respect
assistive technologies; participative programs and to appointment and tenure of Independent Directors
standardization that transforms the way people consistent with the Companies Act, 2013 and the
experience our products. Our energy efficient solutions Listing Regulations. As per the provisions of the
enable people to save money and protect their capital Companies Act, 2013, the Independent Directors shall
investment while also lowering their energy usage and be appointed for not more than two terms of maximum
protecting the environment. of five years each and shall not be liable to retire by
rotation. At the time of appointment of an Independent

This contributes to our social responsibility of
Director, the Company issues a formal letter of
sustenance of depleting environmental resources.
appointment outlining his/ her role, function, duties and
142-309
responsibilities as a Director. The template of the letter

Corporate Governance and Ethics
of appointment is available on our website.
As a Company we have always worked on the side
of ethics and have shunned expediency in any form. Lead Independent Director
We believe that if something is important enough The Independent Directors of the Board had nominated
to be done, it is important that we do it ethically. We Shri Upendra Kumar Sinha as the Lead Independent
supplement our traditionally held values of ethical Director of the Company. The role of the Lead
behaviour and moral conduct with explicit rules and Independent Director is to provide leadership to the
regulations that guide our efforts in financial, propriety, Independent Directors, liaise on their behalf and ensure
customer care and business excellence. effective functioning of the Board.
117
(a)
Composition and category of Directors (e.g. Promoter, Executive, Non-Executive, Independent
Non-Executive, Nominee Director - institution represented and whether as lender or as equity investor)
As at 31st March, 2021, the composition of the Board of Directors of the Company was as follows:
Sr. No. Name of the Director Category
1. Shri Anil Rai Gupta Executive
Chairman and Managing Director
2. Shri Surjit Kumar Gupta Non-Executive
Promoters
Non-Independent Director
3. Shri Ameet Kumar Gupta Executive
Whole-time Director
4. Shri Rajesh Kumar Gupta Executive
Whole-time Director (Finance) and Group CFO
5. Shri Siddhartha Pandit Executive
Whole-time Director
6. Smt. Pratima Ram Independent Director
7. Shri Jalaj Ashwin Dani Independent Director
8. Shri T. V. Mohandas Pai Non-Executive
Non- Non-Independent Director
Promoters
9. Shri Puneet Bhatia Non-Executive
10. Shri Upendra Kumar Sinha Independent Director
11. Shri Subhash S Mundra Independent Director
12. Shri B Prasada Rao Independent Director
13. Shri Vivek Mehra Independent Director
14. Smt. Namrata Kaul* Independent Director
*With effect from 20th January, 2021, Smt. Namrata Kaul was appointed as an Additional Director (Independent) subject to approval of
the shareholders at the ensuing AGM of the Company.

Note: Additionally, Shri Ashish Bharat Ram was also appointed as an Additional Director (Independent), with effect from 20th May, 2021,
subject to approval of the shareholders at the ensuing AGM of the Company.
(b)
Attendance of each Director at the Meeting of the Board of Directors and the last Annual General Meeting
Sr. No. Name of the Director Attendance in Board Meetings
AGM 22 Jun 20
27 July 20
12 May 20
24 Mar 21
20 Jan 21
29 Oct 19
1. Shri Anil Rai Gupta      

2. Shri Surjit Kumar Gupta      
3. Shri Ameet Kumar Gupta      
4. Shri Rajesh Kumar Gupta      
5. Smt. Pratima Ram      
6. Shri T. V. Mohandas Pai      
7. Shri Puneet Bhatia      
8. Shri Vellayan Subbiah*   NA NA NA 
9. Shri Jalaj Ashwin Dani      
10. Shri Upendra Kumar Sinha      
11. Shri Siddhartha Pandit      
12. Shri Subhash S Mundra      
13. Shri B Prasada Rao      
14. Shri Vivek Mehra      
15. Smt. Namrata Kaul# NA NA NA   NA
*Shri Vellayan Subbiah resigned from the office of Director (Independent) wef 22nd October, 2020.
#
Smt. Namrata Kaul was appointed as an Additional Director (Independent) wef 20th January, 2021.
118
(c) Number of other Board of Directors or Committees in which a Director is a member or chairperson as
Introduction 01-13
on 31st March, 2021
Sr. Name of the Director Directorships in Membership of Chairmanship of
No. Other Board of Committees of Committees of
Directors* Other Boards** Other Boards**
1. Shri Anil Rai Gupta 1 1 1
2. Shri Surjit Kumar Gupta 1 2 0
3. Shri Ameet Kumar Gupta 1 4 0
4. Shri Rajesh Kumar Gupta 1 0 0
5. Smt. Pratima Ram 2 3 0
6. Shri T. V. Mohandas Pai 1 0 0
7. Shri Puneet Bhatia 1 1 0
Integrated Report
8. Shri Jalaj Ashwin Dani 2 4 2
9. Shri Upendra Kumar Sinha 4 5 3
10. Shri Siddhartha Pandit 1 0 0
11. Shri Subhash S Mundra 4 4 1
12. Shri B Prasada Rao 2 2 1
13. Shri Vivek Mehra 7 7 3
14. Smt. Namrata Kaul 3 3 0
14-44
Data presented above is after taking into account the disclosures furnished by the continuing Directors in the first board meeting of the
Financial Year 2021-22.
* Directorships are reported for listed companies only including Havells India Limited in terms of Regulation 17A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015. The count for the number of listed entities on which a person is a
Statutory Reports
Director/ Independent Director is of only those whose equity shares are listed on a Stock Exchange.
** Committee Memberships/ Chairmanships are reported for listed and unlisted public companies put together (including Havells India
Limited) in terms of Regulation 26(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Committee
Memberships include Chairmanship, if any. Committees considered for the purpose are those prescribed under SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 viz. Audit Committee and Stakeholders’ Relationship Committee.
Names of the Listed entities where the person is a Director and the category of Directorship as on
31st March, 2021
Sr. Name of Director Name of Listed Entity in which Director Category of Directorship
45-141
No.
1. Shri Anil Rai Gupta Havells India Limited Chairman and Managing
Director
2. Shri Surjit Kumar Gupta Havells India Limited Non-Executive Non- Financial Statements
Independent Director
3. Shri Ameet Kumar Gupta Havells India Limited Whole-time Director
4. Shri Rajesh Kumar Gupta Havells India Limited Whole-time Director (Finance)
and Group CFO
5. Shri Siddhartha Pandit Havells India Limited Whole-time Director
6. Smt. Pratima Ram Havells India Limited Independent Director
Minda Corporation Limited Independent Director
7. Shri T. V. Mohandas Pai Havells India Limited Non-Executive
142-309
8. Shri Puneet Bhatia Havells India Limited Non-Executive

9. Shri Jalaj Ashwin Dani Havells India Limited Independent Director
Housing Development Finance Corporation Independent Director
Limited (HDFC Ltd.)
10. Shri Upendra Kumar Sinha Havells India Limited Independent Director
Vedanta Limited Independent Director
Housing Development Finance Corporation Independent Director
Limited (HDFC Ltd.)
Max Healthcare Institute Limited Independent Director
119
Sr. Name of Director Name of Listed Entity in which Director Category of Directorship
No.
11. Shri Subhash S Mundra Havells India Limited Independent Director
PTC India Limited Independent Director
Indiabulls Housing Finance Limited Independent Director
BSE Limited Independent Director
12. Shri B Prasada Rao Havells India Limited Independent Director
Magma Fincorp Limited Independent Director
13. Shri Vivek Mehra Havells India Limited Independent Director
HT Media Limited Independent Director
Jubilant Pharmova Limited Independent Director
Chambal Fertilisers and Chemicals Limited Independent Director
DLF Limited Independent Director
Digicontent Limited Independent Director
Zee Entertainment Enterprises Limited Independent Director
14. Smt. Namrata Kaul Havells India Limited Independent Director
Prime Securities Limited Independent Director
Schneider Electric Infrastructure Limited Independent Director
1. The count for the number of listed entities on which a person is a Director/ Independent Director is of only those whose equity
shares are listed on a Stock Exchange.
2. Data presented above is after taking into account the disclosures furnished by the continuing Directors in the first Board Meeting
of the Financial Year 2021-22.
(d) Number of Meetings of the Board of Directors

The details regarding Independent Directors’
held and dates on which held Familiarisation Programmes are given under the
During the financial year 2020-21, 5 (Five) Board Meetings “Codes & Policies” in the Corporate Governance
were held. The dates on which these Meetings were held section on the website of the Company and can be
are given in the Table provided in pt. no. (b) hereinabove. accessed at https://www.havells.com/en/aboutus/
corporate-governance.html
(e) Disclosure of relationships between directors
inter-se (h) S
kills/ Expertise/ Competence of the Board of
Shri Ameet Kumar Gupta, Whole-time Director on the Directors including the areas as identified by the
Board of Directors is the son of Shri Surjit Kumar Gupta, Board in the context of the Company’s Business
Non-Executive Non-Independent Director. The Company is a Fast Moving Electrical Goods
(FMEG) Company with the individual Members of
(f) Number of shares and convertible instruments
its Board of Directors bringing in knowledge and
held by Non-Executive Directors
experience from a variety of sectors, demonstrating
None of the Non-Executive Directors holds any share in breadth and depth of management and leadership
the Company. experience in the following competence areas:
(g)
Web link where details of familiarisation • Financial and business acumen;
programmes imparted to Independent • Guiding and setting the pace for Company’s
Directors is disclosed Operations and future development by aiding
All Independent Directors are familiarized with the implementation of best systems and processes;
Company, their roles, rights, responsibilities in the • Building effective Sales & Marketing strategies,
Company, nature of the industry in which the Company Corporate Branding and Advertising functions;
operates, business model of the Company, etc. from
• Overseeing the development and implementation
time to time. The Company makes consistent efforts
of Risk Management/ GRC tools;
to acquaint the Board with the overall business
performance covering all Business verticals, by way • anagement and strategy of the Information
M
of presenting specific performance of each Plant, Technology function; and
Product Category and Corporate Function from time to • Human Resources Management.
time. The entire Board including Independent Directors
has access to Product Heads/ Factory Heads and The Nomination and Remuneration Policy of Directors,
other commercial/ technical staff, wherever required for KMPs and Other Employees of the Company sets out
informed decision making. Detailed agenda are sent the criteria which serve as guidelines in considering
well in advance to all the Directors in order for the Board potential nominees to the Board of Directors to ensure the
to perform its function and fulfill its role effectively. continuance of a dynamic and forward-thinking Board.
120
Expertise/ Skill of Directors
Introduction 01-13
Sr. No. Name of the Director Expertise/ Skill
1. Shri Anil Rai Gupta Strategic Marketing, Brand transformation and Finance.
2. Shri Surjit Kumar Gupta Technical planning and foreign alliances.
3. Shri Ameet Kumar Gupta Business development, spearheading new projects.
4. Shri Rajesh Kumar Gupta Finance and allied fields, standardization of systems and processes across
the organization.
5. Shri Siddhartha Pandit Contract Drafting & Negotiations, Litigation Management, Dispute
Resolution, M&A Statutory Compliances, Intellectual Property Rights (IPR) etc.
6. Smt. Pratima Ram Investment Banking, Corporate Advisory and Project Appraisal.
Integrated Report
7. Shri T. V. Mohandas Pai IT reforms, Human Resources, Education & Research, Social Reforms
and betterment of the nation in areas of Trade and Industry.
8. Shri Puneet Bhatia Strategic private equity investment and Business Management.
9. Shri Jalaj Ashwin Dani Supply Chain, Human Resources, Corporate Quality and Safety
Functions, Advanced Management and Skill Development.
10. Shri Upendra Kumar Sinha Asset Management, Securities Laws, Corporate Governance, Banking, Finance,
Foreign Investment, Corporate Bond Management and Investor Protection.
14-44
11. Shri Subhash S Mundra Banking, Risk Management, Corporate Governance, Operations and Process
Optimization.
12. Shri B Prasada Rao Corporate Management, Planning & Development activity, Capacity &
Statutory Reports
Capability building.
13. Shri Vivek Mehra Tax and Regulatory reforms, Cross-border Investments and Transaction Structuring
14. Smt. Namrata Kaul Banking & Finance, Treasury Operations, Debt Capital Market & Corporate
Finance, Risk and Credit management, Social development.
(i) Confirmation that in the opinion of the Board, that apart from the above, there was no other material
the Independent Directors fulfill the conditions reason for his resignation.
45-141
specified in these Regulations and are Separate Meeting of the Independent Directors
independent of the management
Abiding the highest norms of Corporate Governance,

Based on the declaration submitted by the separate Meetings of the Independent Directors
Independent Directors of the Company provided
of the Company are held every year in terms of
at the beginning of the Financial Year 2021-22, the Schedule IV to the Companies Act, 2013 and
the Board hereby certify that all the Independent Regulation 25 of the SEBI (Listing Obligations
Directors appointed by the Company fulfills the and Disclosure Requirements) Regulations, 2015,
conditions specified in these regulations and are whereat, inter alia, the following prescribed items are
independent of the management. discussed:
a)
Review of performance of Non-Independent
(j)
Detailed reasons for the resignation of the
Directors and the Board as a whole;
Independent Director who resigns before the
142-309
expiry of his tenure along with a confirmation b)

Review of performance of the Chairperson of
by such director that there are no other material the Company, taking into account the views of
reasons other than those provided: Executive and Non-Executive Directors;
Shri Vellayan Subbiah (DIN: 01138759) resigned from c) Assessment of the quality, quantity and timeliness
the office of Independent Director of the Board of of flow of information between the Company
Directors of the Company with effect from 22nd October, management and the Board that is necessary for
2020, due to increasing commitments with other the Board to effectively and reasonably perform
businesses. Further, Shri Vellayan Subbiah confirmed their duties.
121
In respect of the financial year 2020-21, the Independent transactions and arrangements entered into by the
Directors met separately twice on 29th October, 2020 unlisted foreign subsidiary companies.
and 24th March, 2021 without the presence of any
Non-Independent Director or representatives of Related Party Transactions
management. The Board of Directors has approved a Policy on “Related
Party Transactions” and also on dealing with Related

Company’s Code of Conduct to Regulate, Party Transactions and the same was last reviewed by
Monitor, Report Trading by Designated Persons the Board of Directors on 22nd January, 2019.
The Company has formulated a Code of Conduct to
Regulate, Monitor, Report Trading by Designated
The Policy is available on the website of the Company
Persons to deter the insider trading in the securities of under “Codes & Policies” in the Corporate Governance
the Company based on the unpublished price sensitive section and can be accessed at https://havells.com/en/
information. aboutus/corporate-governance.html

The shareholders of the Company vide Special
The Code envisages procedures to be followed and
Resolution passed on 9th June, 2014 approved per
disclosures to be made while dealing in the securities
annum limits (beginning 1st April, 2014) for certain
of the Company. The said policy was last updated by
Related Party Transactions of the Company.
the Board of Directors on 21st January, 2020 pursuant
to SEBI (Prohibition of Insider Trading) (Amendment) Within the permissible limits under the Companies
Regulations, 2019. Act, 2013 and/ or shareholder approved limits, the
Audit Committee and Board approve the annual limits
The full text of the Code is available on the website of for related party transactions projected for the next
Company under “Codes & Policies” in the Corporate financial year.
Governance section and can be accessed at https://
havells.com/en/aboutus/corporate-governance.html Further, a statement on all related party transactions
is presented before the Audit Committee on a quarterly
For the purpose of monitoring the Policy, the Company basis for its review.
uses a system-based software through which reports
and analytics are made available based on the criteria (3) Audit Committee
defined in the SEBI (Prohibition of Insider Trading) (a) Brief description of terms of reference
Regulations, 2015. The terms of reference of the Audit Committee are as
per the governing provisions of the Companies Act,
Subsidiary 2013 (section 177) and the SEBI (Listing Obligations
The Company has 2 (two) Subsidiary Companies and Disclosure Requirements) Regulations, 2015
which are incorporated outside India. (specified in Part C of Schedule II).
The Role of the Audit Committee includes the following:
Please refer to the Directors’ Report for further details
regarding subsidiaries. (i)
oversight of the Company’s financial reporting
process and the disclosure of its financial
The Board has approved a “Policy for determining information to ensure that the financial statement
Material Subsidiaries” of the Company viz. Havells India is correct, sufficient and credible;
Limited and the same is available on the website of the
(ii)
recommendation for appointment, remuneration
Company under “Codes & Policies” in the Corporate
and terms of appointment of auditors of the
Governance section and can be accessed at https://
Company;
havells.com/en/aboutus/corporate-governance.html
(iii) approval of payment to statutory auditors for any
The Audit Committee of the Company reviews the other services rendered by the statutory auditors;
financial statements, in particular, the investments
(iv)
reviewing, with the management, the annual
made by the unlisted foreign subsidiary company.
financial statements and auditor’s report thereon
before submission to the Board for approval, with
The Minutes of the Board Meetings of the unlisted
particular reference to:
foreign subsidiary companies are placed at the Board
Meeting(s) of the Company held at the end of every (a)
matters required to be included in the
quarter for approval of financial results. director’s responsibility statement to be
included in the Board’s Report in terms of
The Management periodically brings to the attention clause (c) of sub-section (3)of Section 134 of
of the Board of Directors, a statement of all significant the Companies Act, 2013;
122
(b) changes, if any, in accounting policies and (xvi) discussion with statutory auditors before the audit
Introduction 01-13
practices and reasons for the same; commences, about the nature and scope of audit
as well as post-audit discussion to ascertain any
(c) major accounting entries involving estimates
area of concern;
based on the exercise of judgment by
management; (xvii) to look into the reasons for substantial defaults in
the payment to the depositors, debenture holders,
(d) significant adjustments made in the financial
shareholders (in case of non-payment of declared
statements arising out of audit findings;
dividends) and creditors;
(e)
compliance with listing and other legal
(xviii)
to review the functioning of the whistle blower
requirements relating to financial statements;
mechanism;
(f) disclosure of any related party transactions;
(xix) approval of appointment of chief financial officer
(g) modified opinion(s) in the draft audit report; after assessing the qualifications, experience and
background, etc. of the candidate;
Integrated Report
(v)
reviewing, with the management, the quarterly
financial statements before submission to the (xx)
considering such other matters the Board may
Board for approval; specify;
(vi)
reviewing, with the management, the statement (xxi) reviewing the utilization of loans and/ or advances
of uses/ application of funds raised through an from/ investment by the holding company in the
issue (public issue, rights issue, preferential subsidiary exceeding rupees 100 crore or 10% of
issue, etc.), the statement of funds utilized for the asset size of the subsidiary, whichever is lower
purposes other than those stated in the offer including existing loans/ advances/ investments
14-44
document/ prospectus/ notice and the report existing as on the date of coming into force of this
submitted by the monitoring agency monitoring provision;
the utilization of proceeds of a public or rights (xxii) reviewing other areas that may be brought under
issue and making appropriate recommendations the purview of role of Audit Committee as specified
Statutory Reports
to the Board to take up steps in this matter; in SEBI Regulations and the Companies Act, from
(vii)
reviewing and monitoring the auditor’s time to time.
independence and performance, and
effectiveness of audit process;
The Audit Committee has been granted powers
as prescribed under Regulation 18 of the SEBI
(viii)
approval or any subsequent modification of (Listing Obligations and Disclosure Requirements)
transactions of the Company with related parties; Regulations, 2015, to investigate any activity within
(ix) scrutiny of inter-corporate loans and investments; its terms of reference, seek information from any
45-141
employee, obtain outside legal or other professional
(x)
valuation of undertakings or assets of the advice and secure attendance of outsiders with
Company, wherever it is necessary; relevant expertise, if it considers necessary. The
(xi) evaluation of internal financial controls and risk Committee also mandatorily reviews the information
as specified in the SEBI Regulations –management
management systems;
discussion and analysis of financial condition and
(xii) reviewing, with the management, performance of results of operations, statement of significant related
statutory and internal auditors, adequacy of the party transactions, submitted by management,
internal control systems; management letters/ letters of internal control
(xiii) reviewing the adequacy of internal audit function, weaknesses issued by the statutory auditors, if any,
if any, including the structure of the internal audit internal audit reports relating to internal control
department, staffing and seniority of the official weaknesses and the appointment, removal and terms
of remuneration of the chief internal auditor.
142-309
heading the department, reporting structure

coverage and frequency of internal audit;
(b) Composition, Name of Members and Chairperson
(xiv) discussion with internal auditors of any significant
The Audit Committee comprises of 4 (Four) Non-
findings and follow up thereon;
Executive Directors as Members. All Members are
(xv) reviewing the findings of any internal investigations financially literate and possess sound knowledge of
by the internal auditors into matters where there accounts, finance and audit matters. The Company
is suspected fraud or irregularity or a failure of Secretary of the Company acts as Secretary to the
internal control systems of a material nature and Audit Committee. The Internal/ Statutory Auditors of the
reporting the matter to the Board; Company attend the Meetings of the Audit Committee
123
on invitation of the Chairman of the Committee. The (b)

Composition, Name of Members and
Composition of Audit Committee as on 31st March, Chairperson
2021, is given below:
The Nomination and Remuneration Committee
Sr. Name Category Designation comprises of 4 (Four) Non-Executive Directors, the
No. Chairman being Non-Executive and Independent. The
1. Shri Upendra Non-Executive Chairman Company Secretary of the Company acts as Secretary
Kumar Sinha* Independent to the Nomination and Remuneration Committee.
2. Smt. Pratima Non-Executive Member The Composition of Nomination and Remuneration
Ram Independent Committee as on 31st March, 2021, is given below:
3. Shri Subhash Non-Executive Member
S Mundra# Independent Sr. Name Category Designation
4. Shri Surjit Non-Executive Member No.
Kumar Gupta Non-Independent 1. Shri Vivek Non-Executive Chairman
Mehra* Independent
*Appointed as Chairman wef 12 May, 2020 th
2. Smt. Pratima Non-Executive Member

#
Appointed as Member wef 12th May, 2020
Ram$ Independent
(c) Meetings and attendance during the year 3. Smt. Namrata Non-Executive Member
Kaul# Independent
Sr. Name Attendance in Audit
No. Committee Meetings held on 4. Shri Surjit Non-Executive Member
Kumar Gupta Non-Independent
12 May 20
28 Sep 20
23 Mar 21
20 Jan 21
29 Oct 20
27 Jul 20
*Appointed as Member wef 12th May, 2020 and Chairman with

effect from 20th January, 2021
Appointed as Member wef 12th May, 2020
$
1. Shri Upendra Appointed as a Member with effect from 20th January, 2021
#
     
Kumar Sinha Note: Shri Vellayan Subbiah, Independent Director, was
2. Smt. Pratima appointed as Member & Chairman of the Committee wef
     
Ram 12th May, 2020 upto his resignation on 22nd October, 2020
3. Shri Subhash
NA*      (c) Meetings and attendance during the year
S Mundra
4. Shri Surjit Kumar Sr. Name Attendance in
     
Gupta No. Nomination and
*Shri Subhash S Mundra was appointed as a Member on Remuneration Committee
12th May, 2020 after the Committee Meeting held on that date. Meetings held on
12 May 20
(4) Nomination and Remuneration Committee 20 Jan 21
(a) Brief description of terms of reference

The Nomination and Remuneration Committee
determines on behalf of the Board and on behalf of 1. Shri Vivek Mehra NA$ 
the Shareholders, the Company’s policy governing 2. Shri Vellayan
remuneration payable to the Managing Director and  NA
Subbiah*
Whole-time Directors as well as the nomination and 3. Smt. Pratima Ram  
appointment of Directors. 4. Smt. Namrata Kaul NA# NA#

The terms of reference of the Nomination and 5. Shri Surjit Kumar
 
Remuneration Committee are as per the governing Gupta
provisions of the Companies Act, 2013 (Section 178) $
Appointed wef 12th May, 2020 after the Committee Meeting
and the SEBI (Listing Obligations and Disclosure held on that date
Requirements) Regulations, 2015 (specified in Part D
*Resigned as Director wef 22nd October, 2020
of Schedule II).
Appointed wef 20th January, 2021 after the Committee
#
Further, in terms of the SEBI (Share Based Employee Meeting held on that date
Benefits) Regulations, 2014, the Nomination and ote: During the financial year 2020-21, the Nomination and
N
Remuneration Committee also supervises the Remuneration Committee also passed 2 (Two) Resolutions by
ESOP/ ESPS Plans of the Company namely - Havells Circulation dated 14th December, 2020 with the consent of all
Employees Long Term Incentive Plan 2014, Havells Members of the Committee for the purpose of appointment of Smt.
Employees Stock Purchase Scheme 2015 and Havells Namrata Kaul as Additional Director (Independent) of the Company
Employees Stock Purchase Scheme 2016. and appointment of Trustee(s) for Havells Employees Welfare Trust.
124
(d) Performance evaluation criteria for Independent Remuneration Policy for Directors, Key Managerial
Introduction 01-13
Directors Personnel and other Employees; regulated by the

The Nomination and Remuneration Committee of Nomination and Remuneration Committee of the
the Board has laid out the evaluation criteria for Board. The Policy is also available on the website of the
performance evaluation of the Board, its Committees Company at https://havells.com/en/aboutus/corporate-
and all the individual directors, in adherence of SEBI governance.html in the “Code & Policies” section in
(Listing Obligations and Disclosure Requirements) Corporate Governance.
Regulations, 2015.
Brief synopsis of the performance evaluation carried The Non-Executive Directors, except for promoter
out for the financial year is provided in the Directors’ director, are entitled to Sitting fees for attending
Report Section of this Report. meetings of the Board, its Committees and the
(5) Remuneration of Directors Shareholders. The Non-Executive Directors, except
promoter directors are also paid an annual commission
(a) Pecuniary relationship or transactions of the
Non-Executive Directors vis-à-vis the listed entity of ` 10 lakhs per annum in addition to the fee payable
Integrated Report
to such Directors for attending the Board and other
None, except for the Sitting Fee or the payment of
Commission to Non-Executive Directors (except for Meetings or reimbursement of expenses, if any.
promoter director).
he remuneration to the Managing Director and Whole-
T
(b) Criteria of making payments to Non-Executive time Director(s) is paid on the scale determined by the
Directors
Nomination and Remuneration Committee within the limits
The
Company has adopted a Nomination and approved by the Shareholders at the General Meeting.
(c) Disclosures with respect to Remuneration
14-44
(i) Details of remuneration/ sitting fees paid to Directors during the Financial Year 2020-21 are given below:
(` in lakhs)
Sr. Name of Director Service No. of shares Sitting Salary Perks Commi- Total
Statutory Reports
No. Term allotted/ Fee (A) (B) (C) ssion (D) (A+B+
transferred C+D)
under ESPS
1. Shri Anil Rai Gupta* 1-4-19 to 0 NA 619.92 0.40 1,834.91 2,455.23
(Chairman and Managing Director) 31-3-24
2. Shri Ameet Kumar Gupta** 1-1-20 to 0 NA 245.28 0.40 733.97 979.65
(Whole-time Director) 31-12-24
3. Shri Rajesh Kumar Gupta** 1-4-20 to 60,000 NA 560.56 0.40# 733.97 1,294.93
(Whole-time Director (Finance) and 31-3-25
45-141
Group CFO)
4. Shri Surjit Kumar Gupta - 0 NA - - - -
5. Shri Siddhartha Pandit 29-5-19 to 1,575 NA 96.15 -# - 96.15
(Whole-time Director) 28-5-22 Financial Statements
6. Smt. Pratima Ram - 0 6.90 - - 10.00 16.90
7. Shri T. V. Mohandas Pai - 0 4.20 - - 10.00 14.20
8. Shri Puneet Bhatia - 0 3.60 - - 10.00 13.60
9. Shri Vellayan Subbiah$ - 0 2.40 - - 7.50 9.90
10. Shri Jalaj Ashwin Dani - 0 6.00 - - 10.00 16.00
11. Shri Upendra Kumar Sinha - 0 6.00 - - 10.00 16.00
12. Shri Subhash S Mundra% - 0 5.40 - - 10.00 15.40
13. Shri B Prasada Rao% - 0 4.80 - - 10.00 14.80
142-309
14. Shri Vivek Mehra% - 0 4.50 - - 10.00 14.50

15. Smt. Namrata Kaul^ - 0 1.50 - - 2.50 4.00
*Entitled to Commission @ 1.25% of the profit before tax.
**Entitled to Commission @ 0.50% of the profit before tax
#
Excluding the value of shares i.e. ` 280.41 lakhs exercised by Shri Rajesh Kumar Gupta and ` 3.22 lakhs exercised by
Shri Siddhartha Pandit during the financial year 2020-21 under the employees stock purchase plan of the Company.
$
Resigned as Director wef 22nd October, 2020.
%
Appointed as Director wef 12th May, 2020.
^
Appointed as Director wef 20th January, 2021.
125
(ii)
Service contracts, notice period, severance fees (b) Name and designation of compliance officer

The appointment of the Executive Directors Shri Sanjay Kumar Gupta, Vice President & Company
is governed by Resolutions passed by the Secretary is the Compliance Officer of the Company.
Shareholders of the Company, which cover
the terms and conditions of such appointment, (c) Number of shareholders’ complaints received
read with the service rules of the Company. A so far
separate Service Contract is not entered into by The number of shareholders’ complaints received and
the Company with Executive Directors. No notice
resolved during financial year 2020-21 is given below:
period or severance fee is payable to any Director.
(i) Number of shareholders’ complaints received – 4
(iii) Stock option details, if any and whether issued
at a discount as well as the period over which
(ii) Number of shareholders’ complaints resolved – 4
accrued and over which exercisable

During the financial year 2020-21, 60,000 Equity (d)
Number not solved to the satisfaction of
Shares of ` 1/- each were allotted under Havells shareholders
Employees Stock Purchase Scheme 2015 to Shri
None. All complaints were resolved to the satisfaction
Rajesh Kumar Gupta and 1,575 Equity Shares of `
of shareholders.
1/- each were allotted under Havells Employees Long
Term Incentive Plan 2014 to Shri Siddhartha Pandit.
(e) Number of pending complaints
(6) Stakeholders Relationship/ Grievance Redressal As at 31st March, 2021, no complaint was pending
Committee unresolved.
The terms of reference and the ambit of powers of
(f) Meetings and attendance during the year
Stakeholders Relationship/ Grievance Redressal
Committee are as per the governing provisions of During the financial year 2020-21, the Stakeholders
the Companies Act, 2013 (Section 178) and the SEBI Relationship/ Grievance Redressal Committee met
(Listing Obligations and Disclosure Requirements) once on 12th May, 2020 which was attended by all the
Regulations, 2015 (specified in Part D of Schedule II). Members of the Committee.
The status of shareholder correspondences, queries,
grievances etc. are endeavored to be addressed
Besides the above, the Board of Directors has Corporate
instantaneously by the secretarial department and Social Responsibility (CSR) Committee, Enterprises
status thereof is also placed before the Stakeholders Risk Management Committee, Share Allotment and
Relationship/ Grievance Redressal Committee. Transfer Committee and an Executive Committee. In
respect of these Committees brief details of the role,
(a) Name of Non-Executive Director heading the terms of reference, composition and no. of meetings
committee held etc. are given below:
The Stakeholders Relationship/ Grievance Redressal
Committee comprises of 3 (Three) members of which, Corporate Social Responsibility Committee
2 (Two) are Non-Executive and Independent Directors, (a) Brief description of terms of reference
the Chairman being Non-Executive and Independent. The Corporate Social Responsibility Committee was
The Company Secretary of the Company acts as formed pursuant to section 135 of the Companies Act,
Secretary to the Stakeholders Relationship/ Grievance 2013 as amended read with the Companies (Corporate
Redressal Committee. The Composition of Stakeholders Social Responsibility Policy) Rules, 2014, to formulate
Relationship/ Grievance Redressal Committee as on and recommend to the Board, a Corporate Social
31st March, 2021, is given below:
Responsibility Policy indicating the activities to be
Sr. Name Category Designation undertaken by the Company as specified in Schedule
No. VII to the Act, to recommend the amount of expenditure
to be incurred on such activities, action plan and to
1. Shri Upendra Non-Executive Chairman
monitor the Corporate Social Responsibility Policy of
Kumar Sinha Independent
the Company from time to time.
2. Shri Jalaj A Dani Non-Executive Member
Independent
The Corporate Social Responsibility Policy of the
3. Shri Ameet Kumar Executive Member Company (“CSR Policy”) is available on the website of
Gupta the Company under “Codes & Policies” in the Corporate
Note: The Committee was reconstituted and each of the Governance section and can be accessed from https://
Members was appointed wef 12th May, 2020 havells.com/en/aboutus/corporate-governance.html
126
The details of the Corporate Social Responsibility The Committee comprises of 5 (Five) members out of which
Introduction 01-13
Policy of the Company have also been disclosed in the 3 (Three) are Non-Executive Directors. The Chairman being
Directors’ Report section of the Annual Report. Non-Executive and Independent Director. The Company
(b)
Composition, Name of Members and Secretary of the Company acts as Secretary to the
Chairperson Enterprises Risk Management Committee. The Composition

The Corporate Social Responsibility Committee of Enterprises Risk Management Committee as on 31st
comprises of 4 (Four) members of which 2 (Two) are Non- March, 2021, is given below:
Executive and Independent, the Chairman being Non-
Sr. Name Category Designation
Executive and Independent. The Company Secretary
No.
of the Company acts as Secretary to the Corporate
Social Responsibility Committee. The Composition of 1. Smt. Pratima Ram Non-Executive Chairman
Corporate Social Responsibility Committee as on 31st Independent
March, 2021, is given below: 2. Shri Jalaj A Dani* Non-Executive Member
Integrated Report
Independent
Sr. Name Category Designation 3. Shri T. V. Non-Executive Member
No. Mohandas Pai* Non-Independent
1. Shri Jalaj A Dani* Non-Executive Chairman 4. Shri Anil Rai Executive Member
Independent Gupta
2. Shri B Prasada Non-Executive Member 5 Shri Rajesh Executive Member
Rao# Independent Kumar Gupta
3. Shri Anil Rai Executive Member
*Appointed as Member wef 12th May, 2020
Gupta
14-44
4. Shri Rajesh Kumar Executive Member
Gupta The Enterprises Risk Management Committee met on
12th May, 2020 and 23rd March, 2021. The Meetings were
*Appointed as Member and Chairman wef 12th May, 2020
attended by all the Members of the Committee.
#
Appointed as Member wef 12th May, 2020 after the Committee
Statutory Reports
Meeting held on that date
Share Allotment and Transfer Committee
Shri Vellayan Subbiah was the Chairman upto 12th May, 2020
The Share Allotment and Transfer Committee meets
and a Member upto 22nd October, 2020
regularly to consider requests of share transfer/
(c) Meetings and attendance during the year transmission/ transposition/ split/ consolidation/ sub-
Sr. Name Attendance in Corporate division/ duplicate share certificate etc. and also to
No. Social Responsibility take note of the investor grievances. The summary of
Committee Meetings number of requests/ grievances received and resolved
45-141
held on in every quarter is also placed before the Stakeholders
Relationship/ Grievance Redressal Committee for its
12 May 20
23 Mar 21
29 Oct 20
information and review.
The Committee comprises of 1 (One) Non-Executive

1. Shri Jalaj A Dani    Director and 2 (Two) Executive Directors. Shri Surjit Kumar
2. Shri B Prasada Rao NA#   Gupta being Non-Executive Director is the Chairman of the
3. Shri Vellayan Committee. The Company Secretary of the Company acts
 NA NA
Subbiah* as Secretary to the Share Allotment and Transfer Committee.
4. Shri Anil Rai Gupta    The Composition of Share Allotment and Transfer Committee
5. Shri Rajesh Kumar as on 31st March, 2021, is given below:
  
Gupta
Sr. Name Category Designation
142-309
Appointed as Member wef 12th May, 2020 after the Committee

#
No.
Meeting held on that date
1. Shri Surjit Kumar Non-Executive Chairman
*Resigned as Director wef 22nd October, 2020
Gupta Non-Independent
Enterprises Risk Management Committee 2. Shri Anil Rai Gupta Executive Member
The role of the Enterprises Risk Management Committee 3. Shri Rajesh Kumar Executive Member
is to identify the risks impacting the Company’s business Gupta
and formulate and administer policies/ strategies aimed
at risk minimization and risk mitigation as part of risk During the financial year 2020-21, the Share Allotment and
management. Transfer Committee met 5 (Five) times.
127
Executive Committee Date of AGM Details of Special Resolutions

The role of the Executive Committee is to expeditiously passed, if any
decide business matters of routine nature and 20th July, 2018 1. Appointment of a Director
implementation of strategic decisions of the Board. The in place of Shri Surjit Kumar
Committee functions within the approved framework and Gupta (DIN: 00002810), who
directions of the Board. The Committee also performs other retires by rotation and being
activities as per the terms of reference of the Board. The eligible, offers himself for re-
Committee comprises of 1 (One) Non-Executive Director appointment
and 3 (Three) Executive Directors. Shri Surjit Kumar 2. Re-appointment of Smt.
Gupta being Non-Executive Director is the Chairman of Pratima Ram (DIN: 03518633)
the Committee. The Company Secretary of the Company as an Independent Director for
acts as Secretary to the Executive Committee. The a Second Term
Composition of Executive Committee as on 31st March, 3. Re-appointment of Shri T. V.
2021, is given below: Mohandas Pai (DIN: 00042167)
as a Director for a Second Term
Sr. Name Category Designation 4. Re-appointment of Shri Puneet
No. Bhatia (DIN: 00143973) as a
1. Shri Surjit Kumar Non-Executive Chairman Director for a Second Term
Gupta Non-Independent 5. Amendment to Main Object
2. Shri Anil Rai Gupta Executive Member Clause of the Memorandum of
3. Shri Ameet Kumar Executive Member Association
Gupta
(c) Special Resolution passed last year through
4. Shri Rajesh Kumar Executive Member
postal ballot – details of voting pattern and
Gupta
procedure thereof
Nil
During the financial year 2020-21, the Executive Committee
met 20 (Twenty) times. (d)
Person who conducted the postal ballot
exercise
(7) General Body Meetings Not Applicable
(a)
Location and time, where last three Annual
General Meetings held (e) Special Resolution proposed to be conducted
through postal ballot
Date of AGM Location Time
No Resolution requiring Postal Ballot as required
22nd June, Through Video 10:00 a.m. by the Companies (Passing of Resolution by Postal
2020 Conferencing (VC) or Ballot) Rules, 2011, has been placed for Shareholder’s
Other Audio Visual Means approval at this Annual General Meeting.
(OAVM)
(8) Means of Communication
27th July, Sri Sathya Sai 10:00 a.m.
2019 International Centre, (a) Quarterly Results
Pragati Vihar, Lodhi Road,
The Company publishes limited reviewed un-audited
New Delhi – 110 003 standalone & consolidated financial results on a quarterly
20th July, Kamani Auditorium, 1, 10:00 a.m. basis. In respect of the fourth quarter, the Company
2018 Copernicus Marg, New publishes the audited financial results both standalone
Delhi - 110 001 & consolidated for the complete financial year.
(b)
Newspapers wherein results normally published
(b) Whether any special resolutions passed in the
The quarterly, half-yearly and annual financial results
previous three annual general meetings are published in Economic Times in English and
Date of AGM Details of Special Resolutions Jansatta Hindi Daily editions.
passed, if any (c) Website, where displayed
22nd June, 2020 Re-appointment of Shri Vellayan
T
he financial results and the official news releases are
Subbiah (DIN: 01138759) as an
also placed on the Company’s website www.havells.com
Independent Director for a
in the investor relations section and can be accessed from
Second Term.
https://www.havells.com/en/discover-havells/investor-
27th July, 2019 Nil relation/financials/quarterly-results.html
128
(d) Official news releases (c) Dividend Payment Date
Introduction 01-13
Yes, the Company regularly publishes an information
The Board of Directors of your Company declared an
update on its financial results and also displays official interim dividend of ` 3/- per equity share of ` 1/- each
news releases in the investor relations section. i.e. @300% during the financial year 2020-21. Payment
of dividend was done within 30 days from date of
(e) Presentations made to institutional investors declaration i.e. 20th January, 2021.
or to the analysts
The Board of Directors of your Company has also
The Company holds analysts calls in each quarter, to
recommended a Final Dividend of ` 3.50 per equity
apprise and make public the information relating to the
share of ` 1/- each i.e. @ 350% for the financial year
Company’s working and future outlook.
2020-21. Date of payment of dividend would be within
30 days from the date of AGM.
(9) General Shareholder Information
(a) Annual General Meeting - Date, Time and Venue (d) Name and address of each stock exchange(s)
at which the listed entity’s securities are listed
Integrated Report
Day : Wednesday
and a confirmation about payment of annual
Date : 30th June, 2021 listing fee to each of such stock exchange(s)
Time : 10:00 a.m. The equity shares of the Company are listed at:
Venue : Through Video Conferencing (VC) or Other • he National Stock Exchange of India Ltd. (NSE),
T
Audio Visual Means (OAVM) Exchange Plaza, C-1, Block G, Bandra Kurla
Complex, Bandra (E), Mumbai- 400 051

Company’s Registered Office i.e. 904,
9th Floor, Surya Kiran Building, KG Marg, • SE Limited (BSE), Phiroze Jeejeebhoy Towers,
B
14-44
Connaught Place, New Delhi – 110 001 will Dalal Street, Mumbai- 400 001
be considered as Venue for the purpose of

The annual listing fee for the financial year 2021-22 has
this Annual General Meeting
been paid by the Company to both the stock exchanges
within the stipulated time.
Statutory Reports
(b) Financial year
(e) Stock code
The Financial year of the Company starts from
1st April of a year and ends on 31st March of the NSE BSE ISIN
following year. HAVELLS 517354 INE176B01034 (Shares)
(f) Market price data- high, low during each month in last financial year
Monthly high & low prices and volumes of the equity shares of the Company at the National Stock Exchange of India Ltd.
45-141
(Nifty) and BSE Limited (Sensex) during financial year 2020-21 are as under:
(Amount in `)
NSE BSE
Period High Low Volume High Low Volume Financial Statements
(No. of shares) (No. of shares)
Apr 2020 579.85 466.50 3,70,90,505 579.25 466.60 16,44,582
May 2020 552.75 447.05 6,06,78,562 559.90 447.20 21,65,667
Jun 2020 593.40 502.05 6,26,34,145 593.00 503.95 23,33,293
Jul 2020 612.65 562.20 5,13,95,601 613.00 562.40 21,68,695
Aug 2020 667.90 576.70 3,78,06,503 667.15 577.05 20,05,933
Sep 2020 693.00 608.45 3,59,72,422 692.95 609.10 11,63,849
Oct 2020 741.00 663.85 3,71,05,083 740.65 664.10 7,88,737
142-309
Nov 2020 855.00 730.00 6,46,23,451 854.60 726.00 18,03,377

Dec 2020 928.50 798.10 5,67,15,994 928.60 798.00 16,33,305
Jan 2021 1,194.85 904.75 9,31,35,948 1,195.30 904.60 36,90,870
Feb 2021 1,231.90 1,033.05 4,90,93,553 1,237.80 1,033.75 26,47,282
Mar 2021 1,185.80 986.50 4,30,04,579 1,185.55 986.55 20,96,635
(Source: NSE and BSE website)
Note: High and low are in rupees per traded share. Volume is the total monthly volume of trade (in numbers) in the Company’s share
on the respective Stock Exchanges.
129
(g) Performance in comparison to broad-based indices such as BSE Sensex, CRISIL Index etc.
Havells share price vis-a-vis BSE Sensex Havells Share Price vis-a-vis NSE Nifty
250.00
-------Prices (Indexed to 100) -----

-----Prices (Indexed to 100)------
250.00 200.00
200.00
150.00
150.00 SNP CNX Nifty
Sensex
100.00 100.00
Havells’ share price
50.00 Havells’ 50.00 at NSE
share price
0.00 at BSE 0.00
Apr 20
May 20
Jun 20
Jul 20
Aug 20
Sep 20
Oct 20
Nov 20
Dec 20
Jan 21
Feb 21
Mar 21
Apr 20
May 20
Jun 20
Jul 20
Aug 20
Sep 20
Oct 20
Nov 20
Dec 20
Jan 21
Feb 21
Mar 21
-----Months ------
-----Months ------
Note: The graph indicates monthly closing positions. Share prices and Note: The graph indicates monthly closing positions. Share prices and
BSE Sensex are indexed to 100 as on 1st April. NSE Nifty are indexed to 100 as on 1st April.
(h)
In case the securities are suspended from
As per Regulation 40 of the Listing Regulations, except
trading, the directors report shall explain the in case of transmission or transposition of securities,
reason thereof requests for effecting transfer of securities shall not be
Not applicable. processed unless the securities are held in demat form
with a depository.
(i) Registrar to an issue and share transfer agent
Link Intime India Private Limited
Noble Heights, 1st Floor, Plot No. NH 2,
In compliance of the provisions of Listing
LSC, C-1 Block, Near Savitri Market, Regulations, the share transfer system of the
Janakpuri, New Delhi-110 058 Company is audited every six months by a
Telephone: 011-41410592,93, 011-49411000 Practicing Company Secretary and a certificate to
Fax: 011-41410591 that effect is issued by him/ her.
Email: delhi@linkintime.co.in
Website: www.linkintime.co.in In case of request for dematerialization of shares,
confirmation of dematerialization is sent to the respective
(j) Share transfer system
depository i.e. National Securities Depository Limited
rading in equity shares of the Company through
T
recognized Stock Exchanges can be done only in (NSDL) or Central Depository Services (India) Limited
dematerialized form. (CDSL), expeditiously.
(k) Distribution of shareholding as on 31st March, 2021

Shareholding of Shareholders % of Total No. of Shares Nominal Value % of Nominal
Nominal Value of (Numbers) Share Holders (in `) Value
`1/- each
Upto 5,000 1,61,062 98.88 2,20,83,162 2,20,83,162 3.53
5,001 - 10,000 796 0.49 58,86,764 58,86,764 0.94
10,001 - 20,000 360 0.22 51,55,129 51,55,129 0.82
20,001 - 30,000 147 0.09 36,54,777 36,54,777 0.58
30,001 - 40,000 68 0.04 24,21,481 24,21,481 0.39
40,001 - 50,000 45 0.03 20,61,456 20,61,456 0.33
50,001 - 1,00,000 126 0.08 89,82,142 89,82,142 1.43
1,00,001 & Above 276 0.17 57,57,68,095 57,57,68,095 91.97
GRAND TOTAL 1,62,880 100.00 62,60,13,006 62,60,13,006 100.00
130
Ownership Pattern as on 31st March, 2021
Introduction 01-13
Category No. of Shareholders No. of Shares Held % of Total Holding
Promoters
Indian Promoters 4 37,24,57,920 59.50
Non Promoters
Institutional Investors
Mutual Fund and Alternative Investment Funds 39 1,49,30,486 2.39
Foreign Portfolio Investors 622 15,59,39,099 24.91
Bank, Financial Institutions and Insurance 21 3,44,54,445 5.50
Companies
Central Government/ State Government(s) 3 11,98,496 0.19
Non-Institutions
Indian Public* 1,52,040 4,08,71,750 6.53
NRI 4,731 26,46,816 0.42
Integrated Report
Bodies Corporate 1,053 34,72,034 0.55
Non Promoter Non Public
Employee Benefit Trust 1 41,960 0.01
Grand Total 1,58,514 62,60,13,006 100.00
*Indian Public shareholding includes shareholdings of individuals, shares with IEPF Authority, Trusts, HUF, Unclaimed Suspense A/c,
and Clearing Members.
Details of Ownership Pattern given above are based on the Shareholding Pattern filed with the Stock Exchanges as
14-44
at 31st March, 2021, wherein the Shareholding is consolidated on the basis of PAN in terms of SEBI Circular dated
19th December, 2017.
Ownership Pattern as on 31st March 2021
Statutory Reports
Promoters, 59.50 Private Corporate Bodies, 0.55
Mutual Funds and UTI, 2.39 Indian Public, 6.53
Banks, FIs and Insurance Companies, 5.50 NRI/ Foreign Bodies, 0.42
Foreign Portfolio Investors, 24.91
45-141
Central Government/ State Government(s), 0.19
List of Shareholders other than Promoters holding more than 1% as on 31st March, 2021
Sr. No. Name of Shareholder No. of Shares held % of Total Shareholding
1. NALANDA INDIA EQUITY FUND LIMITED 3,30,44,930 5.28
2. LIFE INSURANCE CORPORATION OF INDIA 3,04,27,370 4.86
3. GOVERNMENT PENSION FUND GLOBAL 1,20,04,413 1.92
4. SMALLCAP WORLD FUND, INC 1,10,10,155 1.76
142-309
Total 8,64,86,868 13.82
(l) Dematerialization of shares and liquidity Equity Shares of the Company, forming 99.80%

The shares of the Company are in compulsory of the Company’s paid up capital is held in the
demat segment and are available for trading in the dematerialized form. Majority of demat shares are with
depository systems of both the National Securities National Securities Depository Limited. The status of
Depository Limited (NSDL) and Central Depository shares held in demat and physical format is given
Services (India) Limited (CDSL). As at 31st March, below. The Company’s shares are liquid and actively
2021, 62,47,32,679 Equity shares out of 62,60,13,006 traded on the NSE and BSE.
131
Particulars As on 31st March, 2021 As on 31st March, 2020

Number of Shares Percentage Number of Shares Percentage
Shares in Demat Form 62,47,32,679 99.80 62,43,76,502 99.77
NSDL 61,62,45,670 98.44 61,54,10,656 98.34
CDSL 84,87,009 1.36 89,65,846 1.43
Shares in Physical Form 12,80,327 0.20 14,26,332 0.23
Total 62,60,13,006 100.00 62,58,02,834 100.00
Ownership in Demat and Physical Mode
NSDL, 98.44%
CDSL, 1.36%
Physical, 0.20%
(m)
Outstanding global depository receipts or exposure, the Company has in place a Board approved
American depository receipts or warrants or Policy on Foreign Exchange for the management
any convertible instruments, conversion date
of corporate foreign exchange risk by defining its
and likely impact on equity
exposures, measuring them and defining appropriate
There are no GDRs/ ADRs/ Warrants outstanding as on
31st March, 2021. actions to control the risk. The intent of this Policy is to
minimise the financial statement impact of fluctuating
(n) Commodity price risk or foreign exchange risk
foreign currency exchange rates.
and hedging activities
In order to manage the Company’s Foreign Exchange
(o) Plant locations

Sr. Unit/ Plant Products
No.
1. Distt. Solan, Baddi, Himachal Pradesh Electrical wire Accessories and
Switchgears
2. Plot No. 2 and 2A, Sector - 12, SIDCUL Industrial Area, Haridwar, Uttarakhand Water Purifier and Appliances
3. 14/3, Mathura Road, Faridabad, Haryana Switchgears
4. Plot No.6, Site - IV, Sahibabad Industrial Area, Sahibabad (U.P.) Switchgears and Capacitors
5. SP-181 – 189 & 191(A) Industrial Area, Phase II, Neemrana, Alwar, Motor and Pump
Rajasthan Lighting & Fixture, Water Heater
and Water Cooler
6. A/461-462, & SP – 215, 204 & 204(A) Matsya Industrial Area, Alwar, Rajasthan Industrial & Domestic Cable
7. Plot No. 2A, Sector - 10, SIDCUL Industrial Area, Haridwar, Uttarakhand Fan
8. SP1-133, Rico Industrial Area, Behror, Ghiloth, Alwar, Rajasthan - 301706 Air Conditioner
(p) Address for correspondence

The Company Secretary
(Secretarial Department)
QRG Towers, 2D, Sector – 126,
Expressway, Noida – U.P.
Pin – 201304
Telephone No.: 0120 – 3331000
Fax No.: 0120 – 3332000
Email: investors@havells.com
132
Address for Correspondence with the Registrar (c) Details of establishment of vigil mechanism,
Introduction 01-13
and Transfer Agents whistle blower policy and affirmation that no
Link Intime India Private Limited personnel has been denied access to the audit
Noble Heights, 1st Floor, Plot No. NH 2, committee
LSC, C-1 Block, Near Savitri Market, The Company has adopted a Whistle Blower Policy
Janakpuri, New Delhi-110058 called ‘Satark’ which means alert/ vigilant empowering
Telephone: 011-41410592,93, 011-49411000 any person associated with the organization to file a
Fax: 011-41410591 grievance if he/ she notices any irregularity. ‘Satark’
Email: delhi@linkintime.co.in Policy is available on the website of the Company at
https://www.havells.com/en/aboutus/corporate-
(q) List of all credit ratings obtained by the entity governance.html
along with any revisions thereto during the
relevant financial year, for all debt instruments No person has been denied access to the Audit
of such entity or any fixed deposit programme Committee for any grievance.
Integrated Report
or any scheme or proposal of the listed entity
The Company has in addition to Whistle Blower Policy
involving mobilization of funds, whether in
also adopted a policy named ‘Idea’ to promote a
India or abroad
culture of innovative thinking, creativity and vigilance
The Company has obtained the following Credit Ratings in all areas of its business. The ideas may be related
from CARE: to technical aspects of business, non-technical
Long-term Bank Facilities CARE AAA (Triple A) aspects, commercial aspects, administrative aspects,
Short-term Bank Facilities CARE A1+ (A One Plus) processes, cost saving or any such other aspect that
may benefit the Company.
14-44
The details on credit ratings are provided in the
Directors Report and are also available on the website (d)
Details of compliance with mandatory
of the Company in the Investor Relations section and requirements and adoption of the non-
can be accessed at https://www.havells.com/en/ mandatory requirements
Statutory Reports
discover-havells/investor-relation/credit-rating.html The Company has fully complied with the mandatory
requirements of SEBI (Listing Obligations and
During the year ended 31 March, 2021, there was no
Disclosure Requirements) Regulations, 2015.
change in the above ratings by CARE.
Till 31st May, 2020, the Company also had a Corporate (e) Web link where policy for determining ‘material’
Governance Rating of CARE CGR 2+ (Two Plus) issued subsidiaries is disclosed
by CARE. Subsequently, the credit rating agencies, in The policy for determining ‘material’ subsidiaries is
terms of SEBI mandate, discontinued such ratings. available on the website of the Company under “Codes
45-141
& Policies” in the Corporate Governance section and
(10) Other Disclosures can be accessed at https://www.havells.com/en/
(a) Disclosures on materially significant related aboutus/corporate-governance.html
party transactions that may have potential
(f) Web link where policy on dealing with related
conflict with the interests of listed entity at large
party transactions

During the financial year 2020-21, there was no
materially significant related party transaction that The policy on dealing with related party transactions is
may have potential conflict with the interests of the available on the website of the Company under “Codes
Company at large. For reference, the details of related & Policies” in the Corporate Governance section and
party transactions in accordance with IND AS–24 are can be accessed at https://www.havells.com/en/
given in Note No. 6 of Other Notes on Accounts of the aboutus/corporate-governance.html
Annual Report.
(g)
Disclosure of commodity price risks and
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(b) Details of non-compliance by the listed entity, commodity hedging activities

penalties, strictures imposed on the listed In order to manage the Company’s Foreign Exchange
entity by stock exchange(s) or the board or exposure, the Company has in place a Board approved
any statutory authority, on any matter related Policy on Foreign Exchange Management for the
to capital markets, during the last three years management of corporate foreign exchange risk by
The Company has not been penalized, nor have the defining its exposures, measuring them and defining
stock exchanges, SEBI or any statutory authority appropriate actions to control the risk. The intent of this
imposed any strictures, during the last three years, on Policy is to minimise the financial statement impact of
any matter relating to capital markets. fluctuating foreign currency exchange rates.
133
Policy on Foreign Exchange Risk and Commodity Price (l) D

isclosures in relation to the Sexual Harassment
Risk alongwith Foreign Currency exposure is given of Women at Workplace (Prevention, Prohibition
under Note No. 10 of Other Notes on Accounts of the and Redressal) Act, 2013
Annual Report. The Company is committed to providing and promoting
a safe and healthy work environment for all its
(h) D
etails of utilization of funds raised
employees. A Nirbhaya policy which is in line with the
through preferential allotment or qualified
statutory requirements is in place.
institutions placement as specified under
Regulation 32(7A) a.
number of complaints filed during the financial
year – 0

The Company did not raise any funds through
preferential allotment or qualified institutions placement b.
number of complaints disposed of during the
during the year. financial year – 0
c. number of complaints pending as on end of the
(i)
Certificate from a company secretary in financial year – 0
practice that none of the directors on the
board of the company have been debarred (11)
Disclosure of the Extent to which the
or disqualified from being appointed or Discretionary Requirements as specified in
continuing as Directors of Companies by the Part E of Schedule II have Been Adopted
Board/Ministry of Corporate Affairs or any (a) The Board: As the Chairman of the Company is
such statutory authority an Executive Chairman, hence the provision on
On the basis of written representations/ declaration entitlement of chairperson’s office at the expense
received from the directors, as on March 31, 2021, M/s of the Company in case of a non-executive
MZ & Associates, Company Secretaries (Membership chairperson is not applicable.
No. FCS 9184, CP No. 13875), have issued a certificate,
confirming that none of the Directors on Board of the Shareholder Rights: Quarterly financial statements
Company has been debarred or disqualified from being are published in leading newspapers and
appointed or continuing as Director of companies by uploaded on Company’s website https://www.
SEBI/ MCA or any such authority and the same also havells.com/en/discover-havells/investor-relation/
forms part of this Report. financials/quarterly-results.html
(b) Modified opinion(s) in audit report: The Company

(j)
Where the board had not accepted any
already has a regime of un-qualified financial
recommendation of any committee of the board
statements. Auditors have raised no qualification
which is mandatorily required, in the relevant
on the financial statements.
financial year, the same to be disclosed along
with reasons thereof (c)
Separate posts of Chairperson and CEO:

The Board accepted the recommendations of its Presently, Shri Anil Rai Gupta is the Chairman and
Committees, wherever made, during the year. Managing Director of the Company. He is also the
CEO of the Company.
(k) Total fees for all services paid by the listed
entity and its subsidiaries, on a consolidated (d)
Reporting of Internal Auditor: The Company
basis, to the statutory auditor and all entities appointed KPMG as the Internal Auditors for
in the network firm/ network entity of which the conducting the internal audit for the financial
statutory auditor is a part year 2020-21, representatives whereof report to
The details of total fees for all services paid by the the Head, Risk Management and Governance
Company and its subsidiaries, on a consolidated basis, Department who reports to the Director (Finance)
to the statutory auditor and all entities in the network and Group CFO and has direct access to the
firm/ network entity of which the statutory auditor is a Audit Committee.
part, are as follows:
(12) Disclosures of the Compliance with Corporate
Type of Service Amount (` in crores) Governance Requirements Specified in
Audit Fee 1.35 Regulations 17 to 27 and clauses (B) to (I) of
Tax Audit Fee 0.05 Sub-Regulation (2) of Regulation 46
Other Certification Fee 0.04 The Company has complied with all the mandatory
requirements specified in Regulations 17 to 27 and
Reimbursement of expenses 0.01
clauses (b) to (i) of sub – regulation (2) of Regulation
Total 1.45
46 of the SEBI (Listing Obligations and Disclosure
Note: Out of Pocket expenses are reimbursed on actual basis. Requirements) Regulations, 2015.
134
Declaration signed by the Chief Executive Officer (a) Aggregate number of shareholders and the outstanding
Introduction 01-13
stating that the Members of Board of Directors shares in the suspense account lying at the beginning
and Senior Management Personnel have affirmed of the Year – 30 (No. of shareholders) 2,10,100 (No. of
Compliance with the Code of Conduct of Board of shares) respectively.
Directors and Senior Management (b) Number of shareholders who approached listed entity
The Company is committed to conduct its business in for transfer of shares from suspense account during the
accordance with the applicable laws, rules and regulations year – Nil
and with the highest standards of business ethics. Havells’ (c)
Number of shareholders to whom shares were
Code of Ethics is intended to provide guidance and help transferred from suspense account during the
in recognizing and dealing with ethical issues, mechanisms year – NA
to report unethical conduct and to help foster a culture of
(d) Aggregate number of shareholders and the outstanding
honesty and accountability. shares in the suspense account lying at the end of
year – 30 (No. of shareholders) 2,10,100 (No. of shares)
Integrated Report
The Board has adopted a Code of Ethics for Directors, respectively
Senior Management and other Employees of the
Company. (e)
that the voting rights on these shares shall remain
frozen till the rightful owner of such shares claims the
The Code is available on the website of the Company under shares.
“Codes & Policies” in the Corporate Governance section and
Other useful Information for Shareholders
can be accessed at https://www.havells.com/en/aboutus/
corporate-governance.html ECS Facility
The Company provides facility of “Electronic Clearing
14-44
Service” (ECS) for payment of dividend to its shareholders.
Declaration pursuant to
ECS facility assists in quick remittance of dividend without
SEBI (Listing Obligations and Disclosure
possible loss/delay in postal transit. Shareholders holding
Requirements) Regulations, 2015
shares in physical form are requested to provide details of
Statutory Reports
All Board Members and Senior Management Personnel their bank account for availing ECS facility. However, if the
have affirmed compliance with the code of ethics for the shares are held in dematerialized form, the ECS mandate
financial year ended 31st March, 2021. has to be communicated to the respective Depository
Participant (DP). Changes, if any, in the details furnished
Anil Rai Gupta earlier may also be communicated to the Company or DP,
Chairman and as the case may be.
Delhi, May 20, 2021 Managing Director
Updation of KYC Details
45-141
In order to ensure that all communications and monetary
Compliance Certificate from either the auditors benefits are received promptly by all Shareholders holding
or Practicing Company Secretaries regarding shares in physical form, the Company, through periodic
compliance of conditions of Corporate communiques, advises such shareholders to notify to the Financial Statements
Governance Company, any change in their address/ bank details/ email
The Certificate from the Statutory Auditors of the Company id etc. under the signatures of sole/ first named joint holder
along with relevant supporting documents by using the KYC
regarding compliance of conditions of Corporate
Forms.
Governance forms an integral part of the Annual Report.
SEBI vide its Circular dated 20th April, 2018 had also greatly
Disclosures with Respect to Demat Suspense
emphasized on collection of the Bank Account details
Account/ Unclaimed Suspense Account
and the PAN details of the shareholders in order to enable
The Company has 2,10,100 Equity Shares of ` 1/- each in Companies/ RTA to raise standards and provide improved
142-309
respect of 30 Shareholders, lying into one folio, namely, the services to the Shareholders.
Unclaimed Suspense A/c and in the demat account held
with NSDL (IN30045014669162). Further, the dividend Update E-mails for receiving notice/ documents in
accruing on such Shares was also credited to Unpaid e-mode
Dividend Account. The shareholders who have not registered their email
addresses with the Company are requested to kindly
The requisite disclosures as per Schedule V (F) of SEBI register their e-mail addresses with the Company in the Form
(Listing Obligations and Disclosure Requirements) annexed with the Notice of Annual General Meeting enabling
Regulations, 2015 in this regard are given below: the Company to better service shareholder correspondence
135
through e-mode. The shareholders have also an option to may apply for the same with the IEPF authority by making an
register their email addresses with their Depository through application in the prescribed Form No. IEPF-5.
Depository Participant. Financial Dividend Dividend Date of Due date of
Year Type Per Share Declaration transfer to
In line with the General Circular No. 20/2020 dated 5th May,
(`) IEPF
2020 and General Circular No. 02/2021 dated 13th January,
2013-14 Final 10.00 09.07.2014 15.08.2021
2021 issued by the Ministry of Corporate Affairs, your
2014-15 Final 3.00* 13.07.2015 19.08.2022
Company is sending the Notice calling the AGM along with
2015-16 Interim 3.00 03.02.2016 12.03.2023
the Annual Report to the shareholders in electronic mode at
2015-16 Final 3.00 13.07.2016 19.08.2023
their email addresses.
2016-17 Final 3.50 07.07.2017 14.08.2024
2017-18 Final 4.00 20.07.2018 26.08.2025
Encash Dividend Promptly
2018-19 Final 4.50 27.07.2019 31.08.2026
The shareholders are advised to encash their dividend 2019-20 Interim 4.00 06.03.2020 10.04.2027
promptly to avoid hassles of revalidation or losing right to 2020-21 Interim 3.00 20.01.2021 24.02.2028
claim dividend owing to transfer of unclaimed dividends *During the Financial Year 2014-15, the Equity Shares of the
beyond seven years to the Investor Education and Protection Company, which were of the face value of ` 5/- each, were
Fund. sub-divided into 5 Equity Shares of ` 1/- each.
Note: The amount lying in the unpaid Interim dividend for the
Unclaimed Dividend and shares financial year 2013-14 due date whereof was 20th April, 2021 was
In terms of the provisions of the Companies Act, 2013, transferred to IEPF account as per the provision of the Companies
Act, 2013.
dividends remaining unpaid/ unclaimed for a period of
seven years have to be statutorily transferred to the Investor Dematerialization of Shares
Education and Protection Fund (IEPF) and such shares in
Equity Shares of the Company are under compulsory demat
respect of which dividend entitlements remained unclaimed
trading segment. Considering the advantages of scrip less
for seven consecutive years or more are also required to be
trading, members are advised to consider dematerialization
transferred by the Company to the Investor Education and
of their shareholding so as to avoid inconvenience involved
Protection Fund, administered by the Central Government.
in the physical shares such as mutilation, possibility of loss/
To ensure maximum disbursement of unclaimed dividend,
misplacement, delay in transit etc. and also to ensure safe
the Company regularly sends reminder to the relevant
and speedy transaction in securities.
investors.
The Company periodically sends communications to all
Unclaimed Dividend in respect of the financial year 2013- those Shareholders of the Company who have not yet
14 (Final) and the shares in respect of which dividend dematerialized their physical share certificates, outlining the
entitlements remain unclaimed for seven consecutive years procedure for dematerialization and benefits thereof.
will be due for transfer to the IEPF on 15th August, 2021
in terms of Section 124 of the Companies Act, 2013 read Transfer/ Transmission/ Transposition of Shares
with the Investor Education and Protection Fund Authority As per Regulation 40 of the SEBI Listing Regulations,
(Accounting, Audit, Transfer and Refund) Rules, 2016. securities of listed companies can be transferred only in
Members who have not encashed their Final Dividend in dematerialised form. Members holding shares in physical
respect of the financial year ended 31st March, 2014 or any form are advised to avail the facility of dematerialisation.
subsequent year(s) are requested to lodge their claims with These provisions are not applicable for transmission (i.e.
the Company. transfer of title of shares by way of inheritance/ succession)
and transposition (i.e. re-arrangement/ interchanging of the
A separate communication in this regard has already been order of name of shareholders) cases.
sent to the Shareholders of the Company who have not
In terms of the relevant SEBI circulars, a copy of the PAN
encashed their dividend warrants, providing them details of
card is to be furnished to the Company in the following cases:
the unencashed warrants and requesting them to comply
with the procedure for seeking payment of the same. (a) deletion of name of deceased shareholder(s) where
shares are held jointly in the name of two or more
In respect of Final Dividend for the financial year ended 31st shareholders;
March, 2014, it will not be possible to entertain claims which
(b) transmission of shares to the legal heirs where shares
are received by the Company after 15th August, 2021.
are held solely in the name of deceased shareholder;
and
Members are advised that in terms of the provisions of
Section 124 of the Companies Act, 2013, once unclaimed (c)
transposition of shares where order of names of
dividend and shares are transferred to IEPF, no claim shall lie shareholders are to be changed in the physical shares
against the Company in respect thereof. However members held jointly by two or more shareholders.
136
Investors, therefore, are requested to furnish the self-attested are requested to notify to the Company, change in their
Introduction 01-13
copy of PAN card, at the time of sending the physical share address/ bank details/ email id instantly by written request
certificate(s) to the Company, for effecting any of the above under the signatures of sole/ first joint holder.
stated requests.
Shareholder(s) holding shares in dematerialized form are
Shareholders are also requested to keep record of their specimen requested to notify change in bank details/ address/ email
signature before lodgment of shares with the Company to avoid Id directly with their respective DPs.
probability of signature mismatch at a later date.
Quote Folio No./ DP id No.
Nomination Facility
Shareholders/ Beneficial Owners are requested to quote
Provision of Section 72 of the Companies Act, 2013 read with rule their Folio Nos./ DP ID Nos., as the case may be, in all
19(1) of the rules made thereunder extends nomination facility correspondence with the Company.
to individuals holding shares in the physical form. To help the
legal heirs/ successors get the shares transmitted in their favour, Shareholders are also requested to quote their E-mail
Integrated Report
shareholder(s) are requested to furnish the particulars of their iDs, Contact/ Fax numbers for prompt reply to their
nomination in the prescribed Nomination Form. Shareholder(s) correspondence.
holding shares in Dematerialized form are requested to register
their nominations directly with their respective DPs.
For and on behalf of
Update your Correspondence Address/ Bank Mandate/ Board of Directors of Havells India Limited
Email Id
To ensure all communications/ monetary benefits received Anil Rai Gupta
14-44
promptly, all shareholders holding shares in physical form Delhi, May 20, 2021 Chairman and Managing Director
Statutory Reports
45-141
142-309
137
CEO’S/ CFO’S CERTIFICATE
We, Anil Rai Gupta, Chairman and Managing Director and Rajesh Kumar Gupta, Director (Finance) and Group CFO of
Havells India Limited, to the best of our knowledge and belief, certify that:
a. We have reviewed the financial statements and the cash flow statement for the year ended 31st March, 2021 and that to
the best of our knowledge and belief:
i. these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
ii. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which
are fraudulent, illegal or violative of the Company’s code of conduct.
c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have
evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting and we have
disclosed, to the auditors and the Audit Committee, wherever applicable, deficiencies in the design or operation of
such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these
deficiencies.
d. We have indicated to the auditors and the Audit Committee, wherever applicable,
i. significant changes in internal control over financial reporting during the year;
ii. significant changes in accounting policies during the year and that the same have been disclosed in the notes to
the financial statements; and
iii. instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or any employee having a significant role in the Company’s internal control system over financial reporting.
For Havells India Limited For Havells India Limited
(Anil Rai Gupta) (Rajesh Kumar Gupta)

Chairman and Managing Director Director (Finance) and Group CFO
Delhi, May 20, 2021
138
Certificate of non-disqualification of directors (pursuant to regulation 34(3) and schedule v para c clause
Introduction 01-13
(10)(i) of the sebi (listing obligations and disclosure requirements) regulations, 2015
To,
The Members of
Add.: 904, 9th Floor, Surya Kiran Building,
KG Marg, Connaught Place, New Delhi 110001
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Havells India
Limited having CIN L31900DL1983PLC016304 and having registered office at 904, 9th Floor, Surya Kiran Building, K G Marg,
Connaught Place, New Delhi 110001 (hereinafter referred to as ‘the Company’), produced before us by the Company for the
purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the
Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Integrated Report
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company
& its officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial
Year ending on 31st March, 2021 have been debarred or disqualified from being appointed or continuing as Directors of
companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.
Sr. No. Name of Director DIN Date of Appointment in Company

1. Shri Anil Rai Gupta 00011892 30/09/1992
14-44
2. Shri Surjit Kumar Gupta 00002810 08/08/1983
3. Shri Ameet Kumar Gupta 00002838 22/12/2014
4. Shri Rajesh Kumar Gupta 00002842 21/03/1992
5. Smt. Pratima Ram 03518633 28/07/2014
Statutory Reports
6. Shri Mohandas Pai Tellicheery Venkataraman 00042167 22/12/2014
7. Shri Puneet Bhatia 00143973 22/12/2014
8. Shri Jalaj Ashwin Dani 00019080 16/08/2017
9. Shri Upendra Kumar Sinha 00010336 01/03/2018
10. Shri Siddhartha Pandit 03562264 29/05/2019
11. Shri Subhash Sheoratan Mundra 00979731 12/05/2020
12. Shri Bontha Prasada Rao 01705080 12/05/2020
45-141
13. Shri Vivek Mehra 00101328 12/05/2020
14. Smt. Namrata Kaul 00994532 20/01/2021
Ensuring the eligibility of every Director for the appointment/ continuity on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
For MZ & ASSOCIATES

Company Secretaries
142-309
CS Mohd Zafar
Partner
M No.: FCS 9184
CP: 13875
UDIN: F009184C000244650
Date: May 05, 2021
Place: New Delhi
139
Independent Auditor’s Report on compliance with the conditions of Corporate Governance as per
provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, as amended
The Members of Havells India Limited
1. The Corporate Governance Report prepared by Havells India Limited (hereinafter the “Company”), contains details as
specified in regulations 17 to 27, clauses (b) to (i) and (t) of sub – regulation (2) of regulation 46 and para C, D, and
E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“the Listing Regulations”) (‘Applicable criteria’) for the year ended March 31, 2021 as
required by the Company for annual submission to the Stock exchange.
Management’s Responsibility
2. The preparation of the Corporate Governance Report is the responsibility of the Management of the Company including
the preparation and maintenance of all relevant supporting records and documents. This responsibility also includes
the design, implementation and maintenance of internal control relevant to the preparation and presentation of the
Corporate Governance Report.
3. The Management along with the Board of Directors are also responsible for ensuring that the Company complies with
the conditions of Corporate Governance as stipulated in the Listing Regulations, issued by the Securities and Exchange
Board of India.
Auditor’s Responsibility
4. Pursuant to the requirements of the Listing Regulations, our responsibility is to provide a reasonable assurance in the
form of an opinion whether, the Company has complied with the conditions of Corporate Governance as specified in the
Listing Regulations.
5. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports
or Certificates for Special Purposes and the Guidance Note on Certification of Corporate Governance, both issued
by the Institute of Chartered Accountants of India (“ICAI”). The Guidance Note on Reports or Certificates for Special
Purposes requires that we comply with the ethical requirements of the Code of Ethics issued by ICAI.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services
Engagements.
7. The procedures selected depend on the auditor’s judgement, including the assessment of the risks associated in
compliance of the Corporate Governance Report with the applicable criteria. Summary of procedures performed include:
i. Read and understood the information prepared by the Company and included in its Corporate Governance Report;
ii. Obtained and verified that the composition of the Board of Directors with respect to executive and non-executive
directors has been met throughout the reporting period;
iii. Obtained and read the Register of Directors as on March 31, 2021 and verified that atleast one independent woman
director was on the Board of Directors throughout the year;
iv. Obtained and read the minutes of the following committee meetings / other meetings held April 01, 2020 to March 31, 2021:
(a) Board of Directors;
(b)
Audit Committee;
(c) Nomination and Remuneration Committee;
(d) Corporate Social Responsibility Committee;
(e) Enterprise Risk Management Committee;
(f) Stakeholders Relationship/ Grievance Redressal Committee;
(g) Share Allotment and transfer committtee;
(h) Annual General Meeting (AGM)
140
v. Obtained necessary declarations from the directors of the Company.
Introduction 01-13
vi. Obtained and read the policy adopted by the Company for related party transactions.
vii. Obtained the schedule of related party transactions during the year and balances at the year- end. Obtained and
read the minutes of the audit committee meeting where in such related party transactions have been pre-approved
prior by the audit committee.
viii. Performed necessary inquiries with the management and also obtained necessary specific representations from
management.
ix. Verified the fee disclosures as required by Clause 10(k), Part C, Schedule V of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Integrated Report
8. The above-mentioned procedures include examining evidence supporting the particulars in the Corporate Governance
Report on a test basis. Further, our scope of work under this report did not involve us performing audit tests for the
purposes of expressing an opinion on the fairness or accuracy of any of the financial information or the financial
statements of the Company taken as a whole.
Opinion
9. Based on the procedures performed by us, as referred in paragraph 7 above, and according to the information and
explanations given to us, we are of the opinion that the Company has complied with the conditions of Corporate
Governance as specified in the Listing Regulations, as applicable for the year ended March 31, 2021, referred to in
14-44
paragraph 4 above.
Other matters and Restriction on Use

10. This report is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which
Statutory Reports
the management has conducted the affairs of the Company.
11. This report is addressed to and provided to the members of the Company solely for the purpose of enabling it to comply
with its obligations under the Listing Regulations with reference to compliance with the relevant regulations of Corporate
Governance and should not be used by any other person or for any other purpose. Accordingly, we do not accept or
assume any liability or any duty of care or for any other purpose or to any other party to whom it is shown or into whose
hands it may come without our prior consent in writing. We have no responsibility to update this report for events and
circumstances occurring after the date of this report.
45-141
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Pankaj Chadha

Partner
Membership Number: 091813
UDIN: 21091813AAAACP2142
Place of Signature: Gurugram
Date: May 20, 2021
142-309
141
Independent Auditor’s Report

To the Members of Havells India Limited We are independent of the Company in accordance with
the ‘Code of Ethics’ issued by the Institute of Chartered
Report on the Audit of the Standalone Financial Accountants of India together with the ethical requirements
Statements that are relevant to our audit of the financial statements under
the provisions of the Act and the Rules thereunder, and we
Opinion
have fulfilled our other ethical responsibilities in accordance
We have audited the accompanying standalone financial with these requirements and the Code of Ethics. We believe
statements of Havells India Limited (“the Company”), that the audit evidence we have obtained is sufficient and
which comprise the Balance sheet as at March 31 2021, appropriate to provide a basis for our audit opinion on the
the Statement of Profit and Loss, including the statement standalone financial statements.
of Other Comprehensive Income, the Cash Flow Statement
and the Statement of Changes in Equity for the year then Key Audit Matters
ended, and notes to the standalone financial statements,
Key audit matters are those matters that, in our professional
including a summary of significant accounting policies and
judgment, were of most significance in our audit of the
other explanatory information.
standalone financial statements for the financial year ended
March 31, 2021. These matters were addressed in the
In our opinion and to the best of our information and
context of our audit of the standalone financial statements
according to the explanations given to us, the aforesaid
as a whole, and in forming our opinion thereon, and we do
standalone financial statements give the information
not provide a separate opinion on these matters. For each
required by the Companies Act, 2013, as amended (“the
matter below, our description of how our audit addressed
Act”) in the manner so required and give a true and fair
the matter is provided in that context.
view in conformity with the accounting principles generally
accepted in India, of the state of affairs of the Company as We have determined the matters described below to be
at March 31, 2021, its profit including other comprehensive the key audit matters to be communicated in our report. We
loss, its cash flows and the changes in equity for the year have fulfilled the responsibilities described in the Auditor’s
ended on that date. responsibilities for the audit of the standalone financial
statements section of our report, including in relation to these
Basis for Opinion matters. Accordingly, our audit included the performance of
We conducted our audit of the standalone financial procedures designed to respond to our assessment of the
statements in accordance with the Standards on Auditing risks of material misstatement of the standalone financial
(SAs), as specified under section 143(10) of the Act. statements. The results of our audit procedures, including
Our responsibilities under those Standards are further the procedures performed to address the matters below,
described in the ‘Auditor’s Responsibilities for the Audit of provide the basis for our audit opinion on the accompanying
the Standalone Financial Statements’ section of our report. standalone financial statements.
Key audit matters How our audit addressed the key audit matter
Assessment of impairment of goodwill and intangible assets with indefinite useful life
(as described in note 4 of the standalone financial statements)
As at March 31, 2021 the standalone financial statements Our audit procedures, among others included the followings:
includes Goodwill of ` 310.47 crores and intangible assets
(a) We obtained an understanding of the process and tested
of ` 1029.00 crores having indefinite useful life pertaining to
the operating effectiveness of internal controls over the
acquisition of a business in earlier years.
impairment assessment process and preparation of the
cash flow forecast based on assumptions and inputs to
In accordance with Indian Accounting Standards (Ind-AS)
the model used to estimate the future cash flows.
– 36 ‘Impairment of Assets’, the management has allocated
goodwill and intangible assets having indefinite life to the (b) We assessed the Company’s methodology applied
underlying cash generating unit (CGU) and tested these for in determining the CGU to which these assets are
annual impairment using a discounted cash flow model. allocated.
(c) We assessed the assumptions used in the cash flow
The impairment test model used by management factors
forecasts including discount rates, expected growth
impact of COVID-19 and also includes sensitivity testing of
rates and terminal growth rates.
key assumptions.
142
Introduction 01-13
The annual impairment of goodwill and intangible assets (d) We compared the cash flow forecasts used in
having indefinite useful life and impact of COVID-19 impairment testing to approved budget and other
pandemic on such assessment is considered as significant relevant market and economic information, as well as
accounting judgement and estimate and a key audit matter testing the underlying calculations.
because the assumptions on which the tests are based
(e) We discussed the potential changes in key assumptions
are highly judgmental and are affected by future market
as compared to previous year and impact of COVID-19
and economic conditions which are inherently uncertain,
in order to evaluate whether the inputs and assumptions
and materiality of the balances to the standalone financial
used in the cash flow forecasts were suitable.
statements as a whole.
Integrated Report
(f) We obtained the management testing of impairment
and report of management specialist on impairment
assessment and discussed the assumptions and other
factors used in the assessment.
(g) We also engaged specialist to assess the assumptions
and methodology used by the management to
determine the recoverable amount and also assessed
the recoverable value headroom by performing
14-44
sensitivity testing of key assumptions used.
(h) We tested the arithmetical accuracy of the models.
(i)
We evaluated the adequacy of disclosures in the
Statutory Reports
standalone financial statements related to management’s
assessment including impact of COVID-19 on the
annual impairment tests and as required under Indian
Accounting Standard (Ind-AS) -36 Impairment of Assets
Other Information the preparation of these standalone financial statements that

The Company’s Board of Directors is responsible for the give a true and fair view of the financial position, financial
other information. The other information comprises the performance including other comprehensive income, cash
45-141
information included in the Annual report, but does not flows and changes in equity of the Company in accordance
include the standalone financial statements and our auditor’s with the accounting principles generally accepted in India,
report thereon. including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies
Our opinion on the standalone financial statements does not (Indian Accounting Standards) Rules, 2015, as amended.
cover the other information and we do not express any form This responsibility also includes maintenance of adequate
of assurance conclusion thereon. accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
In connection with our audit of the standalone financial for preventing and detecting frauds and other irregularities;
statements, our responsibility is to read the other information selection and application of appropriate accounting policies;
and, in doing so, consider whether such other information making judgments and estimates that are reasonable and
is materially inconsistent with the financial statements or prudent; and the design, implementation and maintenance
our knowledge obtained in the audit or otherwise appears of adequate internal financial controls, that were operating
142-309
to be materially misstated. If, based on the work we have effectively for ensuring the accuracy and completeness
performed, we conclude that there is a material misstatement of the accounting records, relevant to the preparation and
of this other information, we are required to report that fact. presentation of the standalone financial statements that give
We have nothing to report in this regard. a true and fair view and are free from material misstatement,
whether due to fraud or error.
Responsibilities of Management for the
Standalone Financial Statements In preparing the standalone financial statements,
The Company’s Board of Directors is responsible for the management is responsible for assessing the Company’s
matters stated in section 134(5) of the Act with respect to ability to continue as a going concern, disclosing, as
143
applicable, matters related to going concern and using the on the audit evidence obtained, whether a material
going concern basis of accounting unless management uncertainty exists related to events or conditions that
either intends to liquidate the Company or to cease may cast significant doubt on the Company’s ability
operations, or has no realistic alternative but to do so. to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to
Those Board of Directors are also responsible for overseeing
draw attention in our auditor’s report to the related
the Company’s financial reporting process.
disclosures in the financial statements or, if such
Auditor’s Responsibilities for the Audit of the disclosures are inadequate, to modify our opinion. Our
Standalone Financial Statements conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future
Our objectives are to obtain reasonable assurance about
events or conditions may cause the Company to cease
whether the standalone financial statements as a whole
to continue as a going concern.
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our • valuate the overall presentation, structure and content
E
opinion. Reasonable assurance is a high level of assurance, of the standalone financial statements, including the
but is not a guarantee that an audit conducted in accordance disclosures, and whether the standalone financial
with SAs will always detect a material misstatement when it statements represent the underlying transactions and
exists. Misstatements can arise from fraud or error and are events in a manner that achieves fair presentation.
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic We communicate with those charged with governance
decisions of users taken on the basis of these standalone regarding, among other matters, the planned scope and
financial statements. timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
As part of an audit in accordance with SAs, we exercise during our audit.
professional judgment and maintain professional skepticism
throughout the audit. We also: We also provide those charged with governance with a
statement that we have complied with relevant ethical
• Identify and assess the risks of material misstatement requirements regarding independence, and to communicate
of the standalone financial statements, whether due to with them all relationships and other matters that may
fraud or error, design and perform audit procedures reasonably be thought to bear on our independence, and
responsive to those risks, and obtain audit evidence where applicable, related safeguards.
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material From the matters communicated with those charged with
misstatement resulting from fraud is higher than for governance, we determine those matters that were of
one resulting from error, as fraud may involve collusion, most significance in the audit of the standalone financial
forgery, intentional omissions, misrepresentations, or statements for the financial year ended March 31, 2021
the override of internal control.
and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation
• btain an understanding of internal control relevant to
O
precludes public disclosure about the matter or when, in
the audit in order to design audit procedures that are
extremely rare circumstances, we determine that a matter
appropriate in the circumstances. Under section 143(3)
should not be communicated in our report because the
(i) of the Act, we are also responsible for expressing
adverse consequences of doing so would reasonably be
our opinion on whether the Company has adequate
expected to outweigh the public interest benefits of such
internal financial controls with reference to financial
communication.
statements in place and the operating effectiveness of
such controls.
Report on Other Legal and Regulatory
• Evaluate the appropriateness of accounting policies
Requirements
used and the reasonableness of accounting estimates 1. As required by the Companies (Auditor’s Report) Order,
and related disclosures made by management. 2016 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
• onclude on the appropriateness of management’s use
C the Act, we give in the “Annexure 1” a statement on the
of the going concern basis of accounting and, based matters specified in paragraphs 3 and 4 of the Order.
144
Introduction 01-13
2. As required by Section 143(3) of the Act, we report that: (h) With respect to the other matters to be included in
(a) We have sought and obtained all the information the Auditor’s Report in accordance with Rule 11 of
and explanations which to the best of our the Companies (Audit and Auditors) Rules, 2014,
knowledge and belief were necessary for the as amended in our opinion and to the best of our
purposes of our audit; information and according to the explanations
given to us:
(b)
In our opinion, proper books of account as
required by law have been kept by the Company i. The Company has disclosed the impact of
so far as it appears from our examination of those pending litigations on its financial position
books; in its standalone financial statements –
Integrated Report
Refer Note 32 to the standalone financial
(c) The Balance Sheet, the Statement of Profit and Loss
statements;
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement ii.
The Company did not have any long-term
of Changes in Equity dealt with by this Report are contracts including derivative contracts for
in agreement with the books of account; which there were any material foreseeable
(d) In our opinion, the aforesaid standalone financial losses;
statements comply with the Accounting Standards
iii.
There has been no delay in transferring
14-44
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules, amounts, required to be transferred, to the
2015, as amended; Investor Education and Protection Fund by
the Company
(e)
On the basis of the written representations
Statutory Reports
received from the directors as on March 31, 2021
taken on record by the Board of Directors, none of
the directors is disqualified as on March 31, 2021
from being appointed as a director in terms of
Section 164 (2) of the Act; For S.R. Batliboi & Co. LLP
(f)
With respect to the adequacy of the internal
financial controls with reference to these ICAI Firm Registration Number: 301003E/E300005
45-141
standalone financial statements and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure 2” to this report; per Pankaj Chadha
Partner
(g) In our opinion, the managerial remuneration for Financial Statements
the year ended March 31, 2021 has been paid
/ provided by the Company to its directors in UDIN: 21091813AAAACL9343
accordance with the provisions of section 197 Place of Signature: New Delhi
read with Schedule V to the Act; Date: May 20, 2021
142-309
145
Annexure 1 referred to in paragraph 1 under the heading “Report on other legal and
regulatory requirements” of our report of even date
Re: Havells India Limited (the Company) section 189 of the Companies Act, 2013. Accordingly,
the provisions of clause 3(iii)(a), (b) and (c) of the
(i) (a)
The Company has maintained proper records Order are not applicable to the Company and hence
showing full particulars, including quantitative not commented upon.
details and situation of fixed assets.
(iv)
In our opinion and according to the information
(b)
All fixed assets were physically verified by the and explanations given to us, there are no loans,
management in the previous year in accordance investments, guarantees, and securities given in
with a planned programme of verifying them once respect of which provisions of section 185 and 186 of
in two years which, in our opinion, is reasonable the Companies Act 2013 are applicable and hence not
having regard to the size of the Company and the commented upon.
nature of its assets. No material discrepancies
were noticed on such verification. (v) The Company has not accepted any deposits within
the meaning of Sections 73 to 76 of the Act and the
(c)
According to the information and explanations Companies (Acceptance of Deposits) Rules, 2014 (as
given by the management and audit procedures amended). Accordingly, the provisions of clause 3(v) of
performed by us, the title deeds of immovable the Order are not applicable.
properties included in property, plant and
equipment are held in the name of the Company (vi)
We have broadly reviewed the books of account
except for: maintained by the Company pursuant to the rules made
by the Central Government for the maintenance of cost
• Land taken on lease by the Company from records under section 148(1) of the Companies Act,
its group company duly approved by board 2013, related to the manufacture or service of electricals
of directors for which lease deed is yet to be and electronic goods and are of the opinion that prima
registered with appropriate authorities. The facie, the specified accounts and records have been
Company has constructed building on such made and maintained. We have not, however, made a
land which is appearing in the Company’s detailed examination of the same.
property, plant and equipment having gross
block of ` 31.67 crores and net block of (vii) (a)
The Company is regular in depositing with
` 26.74 crores. appropriate authorities undisputed statutory
• reehold land having gross block of
F dues including provident fund, employees’ state
` 15.89 crores and net block of ` 15.89 crores insurance, income-tax, duty of custom, goods
for which title deed is not in the name of the and service tax, cess and other statutory dues
Company. The Company has constructed applicable to it. The provisions relating to sales
building on such land amounting to gross tax, service tax, duty of excise and value added
block of ` 2.43 crores and net block of ` 1.05 tax are not applicable to the Company.
crores. The Company is in the process of (b)
According to the information and explanations
getting them registered in its name. given to us and audit procedures performed by
us, no undisputed amounts payable in respect
(ii)
The inventory has been physically verified by the of provident fund, employees’ state insurance,
management during the year. In our opinion, the income-tax, duty of custom, goods and service tax,
frequency of verification is reasonable. No material cess and other statutory dues were outstanding,
discrepancies were noticed on such physical at the year end, for a period of more than six
verification. Inventories lying with third parties have months from the date they became payable. The
been confirmed by them as at year end and no provisions relating to sales tax, service tax, duty of
material discrepancies were noticed in respect of such excise and value added tax are not applicable to
confirmations. the Company.
(iii) According to the information and explanations given to (c)

According to the records of the Company, the
us and audit procedures performed by us, the Company dues of income-tax, sales-tax, service tax, duty of
has not granted any loans, secured or unsecured to custom, duty of excise, value added tax, goods
companies, firms, Limited Liability Partnerships or and service tax and cess on account of any
other parties covered in the register maintained under dispute, are as follows:
146
Introduction 01-13
Name of the Statute Nature of the Dues Amount of Amount paid Period to which Forum where dispute is
Demand without under protest the amount pending
netting of amount (` in crores) relates
paid under protest (Financial Year)
(` in crores)
Income Tax Act, 1961 Disallowances and 19.48 9.68 2005-06, 2009-10 Income Tax Appellate
additions to taxable to 2013-14 Tribunal, New Delhi
income.
Income Tax Act, 1961 Disallowances and 26.45 1.98 2009-10 to 2012- Commissioner of Income
additions to taxable 13 Tax (Appeal), New Delhi
income.
Integrated Report
Income Tax Act, 1961 Disallowances and 1.87 1.87 2016-17 and Assessing Officer, New Delhi
additions to taxable 2018-19
income.
Central Excise Act, Excise duty demand/ 0.23 - 2007-08 to 2009- CESTAT, (Chandigarh)
1944 disallowance of 10
Cenvat credit on
various items.
The Custom Act,1944 Custom duty demand 0.16 0.01 2019-20 Commissioner of customs
on various Matter (Appeals)
Finance Act,1994 Service tax demand 0.01 - 2015-16 Assistant Commissioner
14-44
on various matter (CGST), Alwar
Sales Tax/ VAT Sales tax demand on 0.12 - 2001-02 Joint Commissioner
various matter (Appeal), Faridabad
Sales Tax/ VAT Sales tax demand on 2.68 1.74 2010-11, 2013-14 Joint Commissioner
Statutory Reports
various matter to 2016-17 (Appeal), Uttarakhand
Sales Tax/ VAT Sales tax demand on 20.03 13.47 2007-08 to 2015- Tribunal Commercial Tax
various matter 16 (Patna)
Sales Tax/ VAT Sales tax demand on 0.62 0.41 2016-17 Commissioner (appeal)
various matter Patna
Sales Tax/ VAT Sales tax demand on 0.33 0.28 2005-06 Appellate Tribunal,
various matter Commercial Tax, Ernakulam,
(Kerala)
Sales Tax/ VAT Sales tax demand on 0.05 0.03 2007-08 Appellate Tribunal,
various matter Commercial Tax, (Tamil
45-141
Nadu)
Sales Tax/ VAT Sales tax demand on 2.32 0.30 2008-09 to 2011- Appellate Tribunal,
various matter 12 Commercial Tax, (Orissa)
Sales Tax/ VAT Sales tax demand on 1.25 1.23 2009-10 to 2012- Commercial Tax Tribunal,
various matter 13 (Uttarakhand)
Sales Tax/ VAT Sales tax demand on 0.03 0.03 2010-11 Nagpur Municipal
various matter Corporation
Sales Tax/ VAT Sales tax demand on 0.04 0.01 2013-14 Appellate Tribunal
various matter Commercial Tax (Punjab)
Sales Tax/ VAT Sales tax demand on 0.25 0.15 2003-04, 2005-06 High Court (Punjab and
various matter to 2006-07 Haryana)
Sales Tax/ VAT Sales tax demand on 0.21 - 2005-06 High Court (Rajasthan)
various matter
142-309
Goods and Service GST demand on 0.46 0.46 2017-18 High Court (Uttar Pradesh)
Tax (GST) various matter
Goods and Service GST demand on 0.10 0.10 2019-20 Additional Commissioner
Tax (GST) various matter (A), Noida, (Uttar Pradesh)
Goods and Service GST demand on 0.11 0.11 2019-20 Additional Commissioner
Tax (GST) various matter (A), Dehradun (Uttarakhand)
Goods and Service GST demand on 0.58 - 2017-18 High Court (Uttar Pradesh)
Tax (GST) various matter
147
viii) In our opinion and according to the information and Companies Act, 2013 where applicable and the details
explanations given by the management, the Company have been disclosed in the notes to the standalone Ind
has not defaulted in repayment of loans or borrowing AS financial statements, as required by the applicable
dues to banks and financial institutions. The Company accounting standards.
did not have any outstanding loan or borrowing dues in
respect of a government or dues to debenture holders. (xiv) According to the information and explanations given to
us and on an overall examination of the balance sheet,
(ix) In our opinion and according to the information and the company has not made any preferential allotment or
explanations given by the management and audit private placement of shares or fully or partly convertible
procedures performed by us, the Company has utilized debentures during the year under review and hence,
the monies raised by way of debt instruments in the reporting requirements under clause 3(xiv) are not
nature of commercial papers and term loans for the applicable to the company and, not commented upon.
purposes for which they were raised. The Company
has not raised any money way of initial public offer and (xv) According to the information and explanations given
further public offer. by the management and audit procedures performed
by us, the Company has not entered into any non-
(x)
Based upon the audit procedures performed for the cash transactions with directors or persons connected
purpose of reporting the true and fair view of the financial with him as referred to in section 192 of Companies
statements and according to the information and Act, 2013.
explanations given by the management, we report that
no fraud by the company or no fraud on the company by (xvi) According to the information and explanations given to
the officers and employees of the Company has been us, the provisions of section 45-IA of the Reserve Bank
noticed or reported during the year. of India Act, 1934 are not applicable to the Company.
(xi) According to the information and explanations given

by the management, the managerial remuneration has
been paid / provided in accordance with the requisite For S.R. Batliboi & Co. LLP
approvals mandated by the provisions of section 197 Chartered Accountants
read with Schedule V to the Companies Act, 2013. ICAI Firm Registration Number: 301003E/E300005
(xii) In our opinion, the Company is not a nidhi company.

Therefore, the provisions of clause 3(xii) of the order per Pankaj Chadha
are not applicable to the Company and hence not
Partner
commented upon.
(xiii) According to the information and explanations given UDIN: 21091813AAAACL9343
by the management, transactions with the related Place of Signature: New Delhi
parties are in compliance with section 177 and 188 of Date: May 20, 2021
148
ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE
Introduction 01-13
FINANCIAL STATEMENTS OF HAVELLS INDIA LIMTED
Report on the Internal Financial Controls under Clause Meaning of Internal Financial Controls With
(i) of Sub-section 3 of Section 143 of the Companies Act, Reference to these Standalone Financial
2013 (“the Act”) Statements
We have audited the internal financial controls with reference A company’s internal financial controls with reference to
to standalone financial statements of Havells India Limited standalone financial statements is a process designed to
(“the Company”) as of March 31, 2021 in conjunction with provide reasonable assurance regarding the reliability of
our audit of the standalone financial statements of the financial reporting and the preparation of financial statements
Company for the year ended on that date. for external purposes in accordance with generally accepted
accounting principles. A company’s internal financial
Management’s Responsibility for Internal controls with reference to standalone financial statements
Financial Controls includes those policies and procedures that (1) pertain to the
Integrated Report
maintenance of records that, in reasonable detail, accurately
The Company’s Management is responsible for establishing and and fairly reflect the transactions and dispositions of the
maintaining internal financial controls based on the internal control assets of the company; (2) provide reasonable assurance that
over financial reporting criteria established by the Company transactions are recorded as necessary to permit preparation
considering the essential components of internal control stated of financial statements in accordance with generally accepted
in the Guidance Note on Audit of Internal Financial Controls accounting principles, and that receipts and expenditures
Over Financial Reporting issued by the Institute of Chartered of the company are being made only in accordance with
Accountants of India (“ICAI”). These responsibilities include the authorisations of management and directors of the company;
design, implementation and maintenance of adequate internal and (3) provide reasonable assurance regarding prevention
financial controls that were operating effectively for ensuring or timely detection of unauthorised acquisition, use, or
14-44
the orderly and efficient conduct of its business, including disposition of the company’s assets that could have a material
adherence to the Company’s policies, the safeguarding of its effect on the financial statements.
assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the Inherent Limitations of Internal Financial
timely preparation of reliable financial information, as required Controls With Reference to Standalone Financial
Statutory Reports
under the Companies Act, 2013. Statements
Auditor’s Responsibility Because of the inherent limitations of internal financial controls
Our responsibility is to express an opinion on the Company’s with reference to standalone financial statements, including
internal financial controls with reference to these standalone the possibility of collusion or improper management override
financial statements based on our audit. We conducted of controls, material misstatements due to error or fraud
our audit in accordance with the Guidance Note on Audit may occur and not be detected. Also, projections of any
of Internal Financial Controls Over Financial Reporting (the evaluation of the internal financial controls with reference to
“Guidance Note”) and the Standards on Auditing, as specified standalone financial statements to future periods are subject
under section 143(10) of the Act, to the extent applicable to an to the risk that the internal financial control with reference
45-141
audit of internal financial controls, both issued by ICAI. Those to standalone financial statements may become inadequate
Standards and the Guidance Note require that we comply because of changes in conditions, or that the degree of
with ethical requirements and plan and perform the audit compliance with the policies or procedures may deteriorate.
to obtain reasonable assurance about whether adequate
internal financial controls with reference to these standalone Opinion
financial statements was established and maintained and if In our opinion, the Company has, in all material respects,
such controls operated effectively in all material respects. adequate internal financial controls with reference to standalone
financial statements and such internal financial controls with
Our audit involves performing procedures to obtain audit
reference to standalone financial statements were operating
evidence about the adequacy of the internal financial controls
effectively as at March 31, 2021, based on the internal control
with reference to these standalone financial statements and
over financial reporting criteria established by the Company
their operating effectiveness. Our audit of internal financial
considering the essential components of internal control stated
controls with reference to standalone financial statements
in the Guidance Note issued by the ICAI.
included obtaining an understanding of internal financial
142-309
controls with reference to these standalone financial

statements, assessing the risk that a material weakness For S.R. Batliboi & Co. LLP
exists, and testing and evaluating the design and operating Chartered Accountants
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
per Pankaj Chadha
of the financial statements, whether due to fraud or error.
Partner
We believe that the audit evidence we have obtained is Membership Number: 091813
sufficient and appropriate to provide a basis for our audit UDIN: 21091813AAAACL9343
opinion on the Company’s internal financial controls with Place of Signature: New Delhi
reference to these standalone financial statements. Date: May 20, 2021
149
Balance Sheet
as at March 31, 2021
(` in crores)
As at As at
Notes
March 31, 2021 March 31, 2020
ASSETS
1 Non-current assets
Property, plant and equipment 3 1,860.70 1,899.44
Capital work in progress 3 86.26 82.77
Goodwill 4 310.47 310.47
Other intangible assets 4 1,119.13 1,139.51
Intangible assets under development 4 3.65 3.36
Investment in subsidiaries 5 1.63 1.63
Contract assets 6 49.79 60.58
Financial assets 7
(i) Trade receivables 3.32 7.96
(ii) Other financial assets 19.94 21.37
Other non-current assets 8 54.62 50.67
Non current tax asset (net) 9 23.56 16.53
Total Non current assets 3,533.07 3,594.29
2 Current assets
Inventories 10 2,619.89 1,871.88
Financial assets 11
(i) Investments 306.30 -
(ii) Trade receivables 560.31 240.92
(iii) Cash and cash equivalents 326.57 242.09
(iv) Bank balances other than (iii) above 1,298.17 864.83
(v) Other financial assets 45.99 29.44
Other current assets 12 109.23 164.60
Total Current assets 5,286.57 3,433.77
Assets classified as held for sale 13 0.58 19.80
5,287.15 3,453.57
Total assets 8,820.22 7,047.86
EQUITY AND LIABILITIES
1 Equity 14
Equity share capital 62.60 62.58
Other equity 5,101.85 4,242.23
Total equity 5,164.45 4,304.81
2 Liabilities
Non-current liabilities
Contract liabilities 6 4.57 4.32
Financial liabilities 15
(i) Borrowings 393.65 -
(ii) Lease liabilities 101.51 89.74
(iii) Other financial liabilities 1.31 1.13
Provisions 16 58.43 35.57
Deferred tax liabilities (Net) 17 339.11 286.52
Other non-current liabilities 18 - 17.71
Total Non current liabilities 898.58 434.99
Current liabilities
(i) Lease liabilities 29.15 31.87
(ii) Trade payables
a) Total outstanding dues of micro enterprise and small enterprises 188.78 106.28
b) Total outstanding dues of creditors other than micro enterprises and small 1,408.00 1,307.79
enterprises
Provisions 20 257.55 210.01
Current tax liabilities (net) 21 74.26 -
Other current liabilities 22 120.93 105.07
Total current liabilities 2,757.19 2,308.06
Total liabilities 3,655.77 2,743.05
Total equity and liabilities 8,820.22 7,047.86
Summary of significant accounting policies 2
Commitments and contingencies 32
Other notes on accounts 33
The accompanying notes are an integral part of the standalone financial statements.
As per our report of even date For and on behalf of Board of Directors
For S.R. Batliboi & Co. LLP Anil Rai Gupta Rajesh Kumar Gupta
Chartered Accountants Chairman and Director (Finance)
ICAI Registration No. 301003E/E300005 Managing Director and Group CFO
DIN: 00011892 DIN: 00002842
Per Pankaj Chadha Ameet Kumar Gupta Sanjay Kumar Gupta Pankaj Jain
Partner Director Company Secretary Associate Vice President- Finance
Membership No. 091813 DIN: 00002838 FCS No.: F 3348
Date: May 20, 2021
Place: Delhi
150
Statement of Profit and Loss
Introduction 01-13
for the year ended March 31, 2021
(` in crores)
Year ended Year ended
Notes
March 31, 2021 March 31, 2020
I INCOME
Revenue from operations 23 10,427.92 9,429.20
Other income 24 187.82 111.98
Total Income 10,615.74 9,541.18
II EXPENSES
Cost of raw materials and components consumed 25 5,390.51 4,389.58
Integrated Report
Purchase of traded goods 26 1,615.46 1,272.82
Change in inventories of finished goods, traded goods and work in progress etc. 27 (531.07) 172.74
Employee benefits expense 28 885.33 899.58
Finance costs 29 72.64 19.72
Depreciation and amortization expenses 30 248.86 217.91
Other expenses 31 1,502.43 1,667.10
Total expenses 9,184.16 8,639.45
III Profit before tax 1,431.58 901.73
14-44
IV Income tax expenses 17
Current tax 339.35 198.93
Deferred tax charge / (credit) {(refer note 17(ii)} 52.59 (30.23)
Statutory Reports
Total tax expense 391.94 168.70
V Profit for the year 1,039.64 733.03
VI Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods
i) Re-measurement gains / (loss) on defined benefit plans {refer note 33(4)} (2.70) (4.98)
ii) Income tax effect on above {refer note no 17(b)} 0.68 1.25
Other comprehensive income/(loss) for the year, net of tax (2.02) (3.73)
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VII Total comprehensive income for the year, net of tax 1,037.62 729.30
VIII Earnings per equity share (EPS) {refer note no. 33(12)}
(nominal value of share ` 1/-)
Basic EPS (`) 16.61 11.71
Diluted EPS (`) 16.61 11.71

142-309
DIN: 00011892 DIN: 00002842
Date: May 20, 2021
Place: Delhi
151
Statement of Changes in Equity

A) Equity Share Capital

Numbers Amount
Particulars
(` in crores)
As at April 01, 2019 625,472,910 62.55
Add: Exercise of employee stock purchase plan - proceeds received 329,924 0.03
As at March 31, 2020 625,802,834 62.58
As at March 31, 2021 626,013,006 62.60
B) Other Equity
(` in crores)
Reserves and surplus Total
Particulars Capital Securities General Share options Retained
reserve premium reserve outstanding earnings
account
As at April 01, 2019 7.63 56.40 722.72 0.27 3,342.63 4,129.65
Profit for the year - - - - 733.03 733.03
Other comprehensive income for the year
Re-measurement gains / (losses) on defined benefit - - - - (3.73) (3.73)
plans net of tax
Total Comprehensive income for the year 729.30
Transaction with owners in their capacity as owners:
Final Dividend paid for financial year ended March - - - - (281.61) (281.61)
31, 2019
Dividend distribution tax on Final Dividend - - - - (57.89) (57.89)
Interim Dividend paid during the year - - - - (250.32) (250.32)
Dividend distribution tax on interim dividend - - - - (51.45) (51.45)
Employee stock option expense - - - 0.37 - 0.37
Equity shares issued under employee stock - 24.18 - - - 24.18
purchase plan
As at March 31, 2020 7.63 80.58 722.72 0.64 3,430.66 4,242.23
Profit for the year - - - - 1,039.64 1,039.64
Re-measurement gains / (losses) on defined benefit - - - - (2.02) (2.02)
plans net of tax
Total Comprehensive income for the year 1,037.62
Transaction with owners in their capacity as owners:
Interim Dividend paid during the year - - - - (187.80) (187.80)
Equity shares issued under employee stock - 9.80 - 0.01 - 9.81
purchase plan
Options lapsed during the year (0.01) (0.01)
As at March 31, 2021 7.63 90.38 722.72 0.64 4,280.48 5,101.85
DIN: 00011892 DIN: 00002842
Date: May 20, 2021
Place: Delhi
152
Statement of Cash Flows
Introduction 01-13
(` in crores)
March 31, 2021 March 31, 2020
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 1,431.58 901.73
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 248.86 217.91
Loss /(gain) on disposal of property, plant and equipment (net) (40.39) 6.73
Unrealized foreign exchange loss /(gain) (net) 1.30 (1.31)
Integrated Report
Impairment allowance for trade receivables and other assets - credit impaired 24.48 18.23
Impairment of investment in subsidiary company/Joint Venture 1.10 0.03
Bad debts written off 1.43 0.82
Unwinding of discount on long term provisions 4.21 3.55
Discounting of long term warranty provision (6.24) (4.21)
Lease rent concession (2.54) -
Interest income on bank deposits and investment (99.42) (69.58)
14-44
Interest expenses 58.29 5.17
Interest on lease liability 9.68 10.92
Liabilities no longer required written back (4.49) (4.33)
Statutory Reports
Employee stock option expense - 0.37
Operating Profit before working capital changes 1,627.85 1,086.03
Movement in working capital
(Increase)/ Decrease in trade receivables and contract assets (329.20) 157.32
(Increase)/ Decrease in financial assets 2.82 (1.89)
(Increase)/ Decrease in non-financial assets 33.58 (20.03)
(Increase)/ Decrease in inventories (748.01) 47.09
Increase/ (Decrease) in trade payables 181.44 (148.76)
45-141
Increase/ (Decrease) in financial liabilities 81.25 (59.64)
Increase/ (Decrease) in non financial liabilities and contract liabilities 9.91 4.33
Increase/ (Decrease) in provisions 69.73 0.11 Financial Statements
Cash generated from operations 929.37 1,064.56
Income tax paid (net of refunds) (271.44) (239.79)
Net Cash flow from Operating Activities (A) 657.93 824.77
B. CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment and intangible assets (249.89) (360.93)
Receipt of grant related to assets 30.90 -
142-309
Proceeds from sale of property, plant and equipment 96.32 1.69

Investment in fixed deposits with the bank and financial institutions made during the year (729.64) (250.87)
Interest on fixed deposit and investment received 89.42 62.46
Net Cash flow used in Investing Activities (B) (762.89) (547.65)
153
Statement of Cash Flows

(` in crores)
March 31, 2021 March 31, 2020
C. CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of employee stock purchase plan - share capital 0.02 0.03
Proceeds from exercise of employee stock purchase plan - security premium received 9.80 24.18
Payment of principal portion of lease liabilities (27.19) (28.75)
Payment of interest portion of lease liabilities (9.68) (10.92)
Proceeds from issue of Commercial Paper {refer note 11 (C)} 488.25 -
Proceeds from short term borrowing {refer note 11 (C)} 500.00 -
Proceeds from long term borrowing 500.00 -
Repayment of short term borrowings {refer note 11 (C)} (500.00) -
Repayment of long term borrowings (49.50) (54.00)
Repayment of Commercial Paper {refer note 11 (C)} (488.25) -
Interest paid (45.88) (5.17)
Final Dividend paid to equity shareholders of the Company - (339.50)
(including Dividend Distribution Tax)
Interim Dividend paid to equity shareholders of the Company (187.80) (301.77)
(including Dividend Distribution Tax)
Net Cash Flow from Financing Activities (C) 189.77 (715.90)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 84.81 (438.78)
Cash and cash equivalents at the beginning of the year 242.09 680.87
Net foreign exchange differences on cash and cash equivalents held in foreign currency (0.33) -
Cash and Cash Equivalents at the end of the period 326.57 242.09
Notes :
1 The above Cash flow statement has been prepared under the "Indirect Method" as set out in
Indian Accounting Standard-7, "Statement of Cash Flows".
2 Components of cash and cash equivalents :- (` in crores)
As at As at
March 31, 2021 March 31, 2020
Cash and cash equivalents
Balances with banks:
Current accounts 20.11 12.52
Cash credit accounts 32.09 54.10
Fixed deposits account with a original maturity of less than three months 274.27 175.35
Cash on hand 0.10 0.12
326.57 242.09
DIN: 00011892 DIN: 00002842
Date: May 20, 2021
Place: Delhi
154
Notes to financial statements
Introduction 01-13
1 CORPORATE INFORMATION The amendments did not have any impact on the
Havells India Limited (‘the Company’) is a public limited amounts recognised in prior periods and are not
Company domiciled in India and incorporated on expected to significantly affect the current or future
August 08, 1983 under the provisions of the Companies periods.
Act, 1956 having its registered office at 904, 9th Floor,
Surya Kiran Building, K.G. Marg, Connaught Place,
2.01 Basis of preparation of Standalone Financial
New Delhi-110001. The Company is listed on BSE Statements
Limited and National Stock Exchange of India Limited. These standalone financial statements of the Company
have been prepared in accordance with Indian
Integrated Report

The Company is consumer electrical/electronics Accounting Standards (Ind AS) notified under the
and power distribution equipment manufacturer with Companies (Indian Accounting Standards) Rules,
products ranging from Industrial and Domestic Circuit 2015 (as amended from time to time) and presentation
Protection Switchgears, Cables, Motors, Pumps, Solar requirements of Division II of Schedule III to the
Products, Fans, Power Capacitors, LED Lamps and Companies Act, 2013, (Ind AS compliant Schedule III).
Luminaries for Domestic, Commercial and Industrial These standalone financial statements are presented
applications, Modular Switches, Water Heaters, in INR and all values are rounded to the nearest crore
Coolers and Domestic Appliances, Personal Grooming, (INR 0,000,000), except when otherwise indicated.
Air Purifier, Water Purifier, Air conditioner, Television,
14-44
Washing machine and Refrigerator covering the The financial statements have been prepared on a
entire range of household, commercial and industrial historical cost convention, except for the following
electrical needs. assets and liabilities:
Statutory Reports
i)
Certain financial assets and liabilities that is
The Company’s manufacturing facilities are located at
measured at fair value
Faridabad in Haryana, Alwar, Ghiloth and Neemrana in
Rajasthan, Haridwar in Uttarakhand, Sahibabad in Uttar ii) Assets held for sale-measured at fair value less
Pradesh, Baddi in Himachal Pradesh. The research cost to sell
and development facilities are located at Noida (Uttar iii)
Defined benefit plans-plan assets measured at
Pradesh) and Bangalore.
fair value
These standalone financial statements were approved iv) Share based payments
45-141
for issue in accordance with a resolution of the directors
on May 20, 2021. 2.02 Current versus non-current classification

The Company presents assets and liabilities in
2 Summary of significant accounting policies the balance sheet based on current/non- current Financial Statements
This note provides a list of the significant accounting classification. An asset is treated as current when it is:
policies adopted in the preparation of these Indian
- Expected to be realized or intended to be sold or
Accounting Standards (Ind-AS) Standalone financial
consumed in normal operating cycle
statements. These policies have been consistently
applied to all the years except where newly issued - Held primarily for purpose of trading
accounting standard is initially adopted. - Expected to be realized within twelve months after the
reporting period, or
New and amended standards adopted by the Company
142-309
The Company has applied the following amendments - cash or cash equivalent unless restricted from being
to Ind AS for the first time for their annual reporting exchanged or used to settle a liability for at least twelve
period commencing April 01, 2020: months after the reporting period
- Definition of Material – amendments to Ind AS 1 and
All other assets are classified as non-current.
Ind AS 8
A liability is current when:
- Definition of a Business – amendments to Ind AS 103
- It is expected to be settled in normal operating cycle
- COVID-19 related concessions – amendments to Ind
AS 116 - It is held primarily for purpose of trading
155

- It is due to be settled within twelve months after the upon disposal or when no future economic benefits
reporting period, or are expected from its use or disposal. Any gain or loss
arising on derecognition of the asset (calculated as the
- There is no unconditional right to defer the settlement
difference between the net disposal proceeds and the
of the liability for at least twelve months after the
carrying amount of the asset) is included in the income
reporting period
statement when the asset is derecognised.
All other liabilities are classified as non current.
Capital work- in- progress includes cost of property,
Deferred tax assets and deferred tax liabilities are
plant and equipment under installation / under
classified as non- current assets and liabilities.
development as at the balance sheet date.
The operating cycle is the time between the acquisition
of assets for processing and their realization in cash The residual values, useful lives and methods of
and cash equivalents. The Company has identified depreciation of property, plant and equipment are
twelve months as its operating cycle. reviewed at each financial year end and adjusted
prospectively, if appropriate.
2.03 Property, plant and equipment
Freehold Land is carried at historical cost.All other Depreciation on property, plant and equipment is
items of Property, Plant and equipment are stated at calculated on prorata basis on straight-line method
cost, less accumulated depreciation and accumulated using the useful lives of the assets estimated by
impairment losses, if any. Capital work in progress is management. The useful life is as follows:
stated at cost, net of accumulated impairment loss, if Assets Useful life (in years)
any. The historical cost comprises of purchase price, Building 30 and 60
taxes, duties, freight and other incidental expenses Plant and Equipment 15
directly attributable and related to acquisition and Moulds and Dies 6
installation of the concerned assets and are further Furniture and Fixtures 10
adjusted by the amount of input tax credit availed Vehicles 8 and 10
wherever applicable. R &D Equipment 5 and15
Office Equipment 3 and 5
Such cost includes the cost of replacing part of the Mobile Phones 3
plant and equipment and borrowing costs for long- Electric Fans and Installations 3 and 10
term construction projects if the recognition criteria are Computers 3
met. When significant parts of plant and equipment Laptops 4
are required to be replaced at intervals, the Company
depreciates them separately based on their specific The useful lives have been determined based on
useful lives. Likewise, when a major inspection is technical evaluation done by the management’s expert.
performed, its cost is recognised in the carrying In respect of moulds and dies and mobile phones and
amount of the plant and equipment as a replacement if laptops, useful lives are lower than those specified
the recognition criteria are satisfied. All other repair and by schedule II to the Companies Act 2013 and are
maintenance costs are recognised in profit or loss as depreciated over the estimated useful lives of 6 years,
incurred. The present value of the expected cost for the 3 years and 4 years respectively, in order to reflect the
decommissioning of an asset after its use is included actual usage of assets. The residual values are not
in the cost of the respective asset if the recognition more than 5% of the original cost of the assets. The
criteria for a provision are met. asset’s residual values and useful lives are reviewed,
and adjusted if appropriate.
Subsequent costs are included in asset’s carrying
amount or recognised as separate assets, as Lease hold improvements are depreciated on straight
appropriate, only when it is probable that future line basis over shorter of the asset’s useful life and their
economic benefit associated with the item will flow to initial agreement period unless the entity expects to
the Company and the cost of item can be measured use the asset beyond the lease term.
reliably.
Leasehold land is amortized on a straight line basis
An item of property, plant and equipment and any over the unexpired period of their respective lease
significant part initially recognised is derecognized ranging from 90-99 years.
156
Introduction 01-13
2.04 Intangible assets Intangible assets with finite useful life are amortized on
Separately acquired intangible assets a straight line basis over their estimated useful life as
under:
Intangible assets acquired separately are measured
on initial recognition at cost. Cost of intangible assets Assets Useful life (in years)
acquired in business combination is their fair value at Computer Software 6
the date of acquisition. Following initial recognition, R&D Software 6
intangible assets are carried at cost less accumulated Distributor/ Dealer Network 8
amortization and accumulated impairment losses, Non-Compete Fee 7
if any. Internally generated intangibles, excluding Brand and Trademarks Indefinite
Integrated Report
capitalized development cost, are not capitalized and
the related expenditure is reflected in statement of Research and development cost
Profit and Loss in the period in which the expenditure
Research costs are expensed as incurred.
is incurred. Cost comprises the purchase price and Development expenditure incurred on an individual
any attributable cost of bringing the asset to its working project is recognized as an intangible asset when the
condition for its intended use. Company can demonstrate all the following:
The useful lives of intangible assets are assessed as i)

The technical feasibility of completing the
either finite or indefinite. Intangible assets with finite intangible asset so that it will be available for use
or sale;
14-44
lives are amortized over their useful economic lives
and assessed for impairment whenever there is an ii) Its intention to complete the asset;
indication that the intangible asset may be impaired.
The amortization period and the amortization method iii) Its ability to use or sale the asset;
Statutory Reports
for an intangible asset with a finite useful life is iv)
How the asset will generate future economic
reviewed at least at the end of each reporting period. benefits;
Changes in the expected useful life or the expected
v) The availability of adequate resources to complete
pattern of consumption of future economic benefits
embodied in the asset is accounted for by changing the development and to use or sale the asset; and
the amortization period or method, as appropriate, and vi)
The ability to measure reliably the expenditure
are treated as changes in accounting estimates. The attributable to the intangible asset during
amortization expense on intangible assets with finite development.
lives is recognized in the statement of profit and loss.
45-141
Following the initial recognition of the development
Intangible assets with indefinite useful lives are not
expenditure as an asset, the cost model is applied
amortized, but are tested for impairment annually,
requiring the asset to be carried at cost less any
either individually or at the cash-generating unit level.
accumulated amortization and accumulated impairment
The assessment of indefinite life is reviewed annually
losses. Amortization of the asset begins when
to determine whether the indefinite life continues to
development is complete and the asset is available
be supportable. If not, the change in useful life from
for use. It is amortized on straight line basis over the
indefinite to finite is made on a prospective basis.
estimated useful life and is recognised in the statement
The Company has separately acquired brand.The
of profit and loss. During the period of development,
Company has assessed indefinite life for such brand
the asset is tested for impairment annually.
considering the expected usage,expected investment
on brand,business forecast and challenges to establish
Goodwill
142-309
a premium electronic segment.These are carried at

historical cost and tested for impairment annually. Goodwill is initially measured at cost, being the excess
of the aggregate of the consideration transferred over
An intangible asset is derecognised upon disposal or the fair value of net identifiable assets acquired and
when no future economic benefits are expected from liabilities assumed. If the fair value of the net assets
its use or disposal.Gains or losses arising from disposal acquired is in excess of the aggregate consideration
of the intangible assets are measured as the difference transferred, the Company re-assesses whether it has
between the net disposal proceeds and the carrying correctly identified all of the assets acquired and all
amount of the asset and are recognized in the statement of the liabilities assumed and reviews the procedures
of profit and loss when the assets are disposed off. used to measure the amounts to be recognised at
157

the acquisition date. If the reassessment still results period adjustments. The measurement period does not
in an excess of the fair value of net assets acquired exceed one year from the acquisition date.
over the aggregate consideration transferred, then the
gain is recognised in other comprehensive income and 2.05 Impairment of non- financial assets
accumulated in equity as capital reserve. However, The Company assesses, at each reporting date, whether
if there is no clear evidence of bargain purchase, there is an indication that an asset may be impaired.
the entity recognizes the gain directly in equity as If any indication exists, or when annual impairment
capital reserve, without routing the same through other testing for an asset is required, the Company estimates
comprehensive income. the asset’s recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or cash-generating
After initial recognition, goodwill is measured at cost unit’s (CGU) fair value less costs of disposal and its
less any accumulated impairment losses,if any. For the value in use. The recoverable amount is determined for
purpose of impairment testing, goodwill acquired in an individual asset, unless the asset does not generate
a business combination is, from the acquisition date, cash inflows that are largely independent of those from
allocated to each of the Company’s cash-generating other assets or groups of assets. When the carrying
units that are expected to benefit from the combination, amount of an asset or CGU exceeds its recoverable
irrespective of whether other assets or liabilities of the amount, the asset is considered impaired and is written
acquiree are assigned to those units. down to its recoverable amount.
A cash generating unit to which goodwill has been In assessing value in use, the estimated future cash
allocated is tested for impairment annually, when flows are discounted to their present value using
there is an indication that the unit may be impaired. a pre-tax discount rate that reflects current market
If the recoverable amount of the cash generating assessments of the time value of money and the risks
unit is less than its carrying amount, the impairment specific to the asset. In determining fair value less costs
loss is allocated first to reduce the carrying amount of disposal, recent market transactions are taken into
of any goodwill allocated to the unit and then to the account. If no such transactions can be identified, an
other assets of the unit pro rata based on the carrying appropriate valuation model is used. These calculations
amount of each asset in the unit. Any impairment are corroborated by valuation multiples, quoted share
loss for goodwill is recognised in profit or loss. An prices for publicly traded companies or other available
impairment loss recognised for goodwill is not reversed fair value indicators.
in subsequent periods.
The Company bases its impairment calculation on

Where goodwill has been allocated to a cash- detailed budgets and forecast calculations, which
generating unit and part of the operation within that are prepared separately for each of the Company’s
unit is disposed of, the goodwill associated with the CGUs to which the individual assets are allocated.
disposed operation is included in the carrying amount These budgets and forecast calculations generally
of the operation when determining the gain or loss on cover a period of five years. For longer periods, a long-
disposal. Goodwill disposed in these circumstances is term growth rate is calculated and applied to project
measured based on the relative values of the disposed future cash flows after the fifth year. To estimate cash
operation and the portion of the cash-generating unit flow projections beyond periods covered by the most
retained. recent budgets/forecasts, the Company extrapolates
cash flow projections in the budget using a steady or
If the initial accounting for a business combination declining growth rate for subsequent years, unless
is incomplete by the end of the reporting period in an increasing rate can be justified. In any case, this
which the combination occurs, the Company reports growth rate does not exceed the long-term average
provisional amounts for the items for which the growth rate for the products, industries, or country or
accounting is incomplete. Those provisional amounts countries in which the Company operates, or for the
are adjusted through goodwill during the measurement market in which the asset is used.
period, or additional assets or liabilities are recognised,
to reflect new information obtained about facts and Impairment losses of continuing operations, including
circumstances that existed at the acquisition date that, if impairment on inventories, are recognised in the
known, would have affected the amounts recognized at statement of profit and loss, except for properties
that date. These adjustments are called as measurement previously revalued with the revaluation surplus taken to
158
Introduction 01-13
OCI. For such properties, the impairment is recognised The classification of financial assets at initial
in OCI up to the amount of any previous revaluation recognition depends on the financial asset’s
surplus. contractual cash flow characteristics and the
Company’s business model for managing them.
For assets excluding goodwill and intangible assets
having indefinite life, an assessment is made at Initial recognition and measurement
each reporting date to determine whether there is With the exception of trade receivables that do
an indication that previously recognised impairment not contain a significant financing component or
losses no longer exist or have decreased. If such for which the Company has applied the practical
indication exists, the Company estimates the expedient, the Company initially measures a
Integrated Report
asset’s or CGU’s recoverable amount. A previously financial asset at its fair value plus, in the case of
recognised impairment loss is reversed only if there a financial asset not at fair value through profit or
has been a change in the assumptions used to loss, transaction costs.
determine the asset’s recoverable amount since the
Trade receivables that do not contain a significant
last impairment loss was recognised. The reversal is
financing component or for which the Company has
limited so that the carrying amount of the asset does
applied the practical expedient and are measured
not exceed its recoverable amount, nor exceed the
at the transaction price determined under Ind AS
carrying amount that would have been determined, 115. Refer to the accounting policies in section
14-44
net of depreciation, had no impairment loss been ‘Revenue from contracts with customers’.
recognised for the asset in prior years. Such reversal
is recognised in the statement of profit and loss In order for a financial asset to be classified
unless the asset is carried at a revalued amount, in and measured at amortised cost or fair value
Statutory Reports
which case, the reversal is treated as a revaluation through OCI, it needs to give rise to cash flows
increase. that are ‘solely payments of principal and interest
(SPPI)’ on the principal amount outstanding. This
Goodwill is tested for impairment annually and when assessment is referred to as the SPPI test and is
circumstances indicate that the carrying value performed at an instrument level. Financial assets
may be impaired. Impairment is determined for with cash flows that are not SPPI are classified
goodwill by assessing the recoverable amount of and measured at fair value through profit or loss,
each CGU (or group of CGUs) to which the goodwill irrespective of the business model.
relates. When the recoverable amount of the CGU
45-141
The Company’s business model for managing
is less than its carrying amount, an impairment
financial assets refers to how it manages its
loss is recognised. Impairment losses relating to
financial assets in order to generate cash flows.
goodwill cannot be reversed in future periods.
The business model determines whether cash
Intangible assets with indefinite useful lives are tested
flows will result from collecting contractual cash
for impairment annually as at March 31 at the CGU
flows, selling the financial assets, or both.
level, as appropriate, and when circumstances indicate
that the carrying value may be impaired. Financial assets classified and measured at
amortised cost are held within a business model
2.06 Financial instruments with the objective to hold financial assets in order
A financial instrument is any contract that gives rise to to collect contractual cash flows while financial
a financial asset of one entity and a financial liability or assets classified and measured at fair value
equity instrument of another entity. through OCI are held within a business model with
142-309
the objective of both holding to collect contractual

(i) Financial Assets cash flows and selling.
The Company classifies its financial assets in the Subsequent measurement
following measurement categories:

For purposes of subsequent measurement
- Those to be measured subsequently at fair financial assets are classified in following
value (either through other comprehensive categories:
income, or through profit or loss)
-
Financial assets at amortised cost (debt
- Those measured at amortized cost instruments)
159

- Financial assets at fair value through other a)

Business Model Test : The objective of
comprehensive income (FVTOCI) with financial instrument is achieved by both
recycling of cumulative gains and losses collecting contractual cash flows and selling
(debt instruments) the financial assets; and
b)
Cash flow characteristics test: The
-
Financial assets designated at fair value
contractual terms of the Debt instrument give
through OCI with no recycling of cumulative
rise on specific dates to cash flows that are
gains and losses upon derecognition (equity
solely payments of principal and interest on
instruments)
principal amount outstanding.
- Financial assets at fair value through profit or
loss Debt instrument included within the FVTOCI
category are measured initially as well as at each

Financial assets at amortised cost (debt reporting date at fair value. Fair value movements
instruments) are recognized in the other comprehensive
A ‘financial asset’ is measured at the amortised income (OCI), except for the recognition of interest
cost if both the following conditions are met: income, impairment gains or losses and foreign
exchange gains or losses which are recognized in
Business Model Test : The objective is
a)
statement of profit and loss and computed in the
to hold the financial asset to collect the
same manner as for financial assets measured at
contractual cash flows (rather than to sell the
amortised cost. The remaining fair value changes
instrument prior to its contractual maturity to
are recognised in OCI. Upon derecognition, the
realize its fair value changes) and;
cumulative fair value changes recognised in OCI
b)
Cash flow characteristics test: The is reclassified from the equity to profit or loss.
contractual terms of the financial asset give
rise on specific dates to cash flows that are Financial assets at fair value through profit or loss
solely payments of principal and interest on Financial assets at fair value through profit or
principal amount outstanding. loss are carried in the balance sheet at fair
value with net changes in fair value recognised
This category is most relevant to the Company. in the statement of profit and loss. This category
After initial measurement, such financial assets are includes derivative instruments and listed equity
subsequently measured at amortized cost using the investments which the Group had not irrevocably
effective interest rate (EIR) method. Amortised cost elected to classify at fair value through OCI.
is calculated by taking into account any discount or Dividends on listed equity investments are
premium on acquisition and fees or costs that are recognised in the statement of profit and loss
an integral part of EIR. EIR is the rate that exactly when the right of payment has been established.
discounts the estimated future cash receipts over
the expected life of the financial instrument or a
shorter period, where appropriate, to the gross through OCI (equity instruments)
carrying amount of the financial asset. When
Upon initial recognition, the Company can elect
calculating the effective interest rate, the Company
to classify irrevocably its equity investments as
estimates the expected cash flows by considering
equity instruments designated at fair value through
all the contractual terms of the financial instrument
OCI when they meet the definition of equity under
but does not consider the expected credit losses.
Ind AS 32 Financial Instruments: Presentation
The EIR amortization is included in other income in
and are not held for trading. The classification is
profit or loss. The losses arising from impairment
determined on an instrument-by-instrument basis.
are recognized in the profit or loss. This category
Equity instruments which are held for trading
generally applies to trade and other receivables.
and contingent consideration recognised by an
acquirer in a business combination to which Ind
Financial assets at fair value through OCI
AS103 applies are classified as at FVTPL.
(FVTOCI) (debt instruments)
A ‘financial asset’ is classified as at the FVTOCI if Gains and losses on these financial assets are
both of the following criteria are met: never recycled to profit or loss. Dividends are
160
Introduction 01-13
recognised as other income in the statement of what extent it has retained the risks and rewards
profit and loss when the right of payment has been of ownership. When it has neither transferred nor
established, except when the Company benefits retained substantially all of the risks and rewards of
from such proceeds as a recovery of part of the the asset, nor transferred control of the asset, the
cost of the financial asset, in which case, such Company continues to recognise the transferred
gains are recorded in OCI. Equity instruments asset to the extent of the Company’s continuing
designated at fair value through OCI are not involvement. In that case, the Company also
subject to impairment assessment. recognises an associated liability. The transferred
asset and the associated liability are measured on
Embedded Derivatives a basis that reflects the rights and obligations that
Integrated Report
A derivative embedded in a hybrid contract, with a the Company has retained.
financial liability or non-financial host, is separated
from the host and accounted for as a separate Continuing involvement that takes the form of a
derivative if: the economic characteristics and guarantee over the transferred asset is measured
risks are not closely related to the host; a separate at the lower of the original carrying amount of the
instrument with the same terms as the embedded asset and the maximum amount of consideration
derivative would meet the definition of a derivative; that the Company could be required to repay.
and the hybrid contract is not measured at fair
Impairment of financial assets
14-44
value through profit or loss. Embedded derivatives
are measured at fair value with changes in fair In accordance with IND AS 109, the Company
value recognised in profit or loss. Reassessment applies expected credit losses(ECL) model for
only occurs if there is either a change in the terms measurement and recognition of impairment loss
Statutory Reports
of the contract that significantly modifies the on the following financial asset and credit risk
cash flows that would otherwise be required or a exposure
reclassification of a financial asset out of the fair - Financial assets measured at amortized cost;
value through profit or loss category.
- Financial assets measured at fair value through
Derecognition other comprehensive income(FVTOCI);
A financial asset (or, where applicable, a part of
ECLs are based on the difference between the
a financial asset or part of a Company of similar
contractual cash flows due in accordance with
financial assets) is primarily derecognised (i.e.
45-141
the contract and all the cash flows that the Group
removed from the Company’s statement of
expects to receive, discounted at an approximation
financial position) when:
of the original effective interest rate. The expected
- The rights to receive cash flows from the cash flows will include cash flows from the sale of Financial Statements
asset have expired, or collateral held or other credit enhancements that
are integral to the contractual terms.
- the Company has transferred its rights to
receive cash flows from the asset or has
ECLs are recognised in two stages. For credit
assumed an obligation to pay the received
exposures for which there has not been a
cash flows in full without material delay
significant increase in credit risk since initial
to a third party under a “pass through”
recognition, ECLs are provided for credit losses
arrangement and either;
that result from default events that are possible
142-309
(a) the Company has transferred substantially all within the next 12-months (a 12-month ECL). For
the risks and rewards of the asset, or those credit exposures for which there has been
a significant increase in credit risk since initial
(b)
the Company has neither transferred nor
recognition, a loss allowance is required for credit
retained substantially all the risks and
losses expected over the remaining life of the
rewards of the asset, but has transferred
exposure, irrespective of the timing of the default
control of the asset.
(a lifetime ECL).
When the Company has transferred its rights to
receive cash flows from an asset or has entered into The Company follows “simplified approach” for
a pass-through arrangement, it evaluates if and to recognition of impairment loss allowance on:
161

- Trade receivables or contract revenue receivables; directly attributable transaction costs. All financial
liabilities are recognised initially at fair value and,
- All lease receivables resulting from the transactions
in the case of loans and borrowings and payables,
within the scope of Ind AS 116 -Leases
net of directly attributable transaction costs. The
Under the simplified approach, the Company Company financial liabilities include loans and
does not track changes in credit risk. Rather, it borrowings, trade payables, trade deposits,
recognizes impairment loss allowance based on retention money, liabilities towards services, sales
lifetime ECLs at each reporting date, right from its incentive and other payables.
initial recognition. The Company uses a provision
matrix to determine impairment loss allowance on Subsequent measurement
the portfolio of trade receivables. The provision For purposes of subsequent measurement, financial
matrix is based on its historically observed default liabilities are classified in two categories:
rates over the expected life of trade receivable
and is adjusted for forward looking estimates. (i) Financial liabilities at fair value through profit or
At every reporting date, the historical observed loss
default rates are updated and changes in the (ii) Financial liabilities at amortised cost (loans and
forward looking estimates are analysed. borrowings)
ECL impairment loss allowance (or reversal) Financial liabilities at fair value through profit or loss
recognized during the period is recognized as Financial liabilities at fair value through profit or loss
income/ expense in the statement of profit and include financial liabilities held for trading and financial
loss. This amount is reflected under the head liabilities designated upon initial recognition as at fair
‘other expenses’ in the statement of profit and value through profit or loss. Financial liabilities are
loss. The balance sheet presentation for various classified as held for trading if they are incurred for
financial instruments is described below: the purpose of repurchasing in the near term. This
category also includes derivative financial instruments
(a) Financial assets measured as at amortised entered into by the Company that are not designated as
cost: ECL is presented as an allowance, hedging instruments in hedge relationship as defined
i.e., as an integral part of the measurement by Ind AS 109. The separated embedded derivate
of those assets in the balance sheet. The are also classified as held for trading unless they are
allowance reduces the net carrying amount. designated as effective hedging instruments.
Until the asset meets write-off criteria, the
group does not reduce impairment allowance Gains or losses on liabilities held for trading are
from the gross carrying amount. recognized in the statement of profit and loss.
(b) Loan commitments and financial guarantee
contracts: ECL is presented as a provision in Financial liabilities designated upon initial recognition at
the balance sheet, i.e. as a liability. fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria
(c) Debt instruments measured at FVTOCI: in IND AS 109 are satisfied. For liabilities designated as
For debt instruments measured at FVTOCI, FVTPL, fair value gains/ losses attributable to changes
the expected credit losses do not reduce the in own credit risk are recognized in OCI. These gains/
carrying amount in the balance sheet, which loss are not subsequently transferred to profit and loss.
remains at fair value. Instead, an amount However, the Company may transfer the cumulative
equal to the allowance that would arise if gain or loss within equity. All other changes in fair value
the asset was measured at amortised cost is of such liability are recognized in the statement of profit
recognised in other comprehensive income or loss. the Company has not designated any financial
as the accumulated impairment amount. liability as at fair value through profit and loss.
(ii) Financial liabilities: Financial liabilities at amortised cost (Loans and

Initial recognition and measurement borrowings)
Financial liabilities are classified at initial recognition After initial recognition, interest-bearing borrowings
as financial liabilities at fair value through profit or are subsequently measured at amortized cost using
loss, loans and borrowings, and payables, net of the Effective interest rate method. Gains and losses
162
Introduction 01-13
are recognized in profit or loss when the liabilities are

Reclassification of financial assets/ financial
derecognised as well as through the Effective interest liabilities
rate amortization process. Amortized cost is calculated The Company determines classification of financial
by taking into account any discount or premium on assets and liabilities on initial recognition. After
acquisition and fees or costs that are an integral part initial recognition, no reclassification is made for
of the Effective interest rate. The Effective interest financial assets which are equity instruments and
rate amortization is included as finance costs in the
financial liabilities. For financial assets which are debt
statement of profit and loss.
instruments, a reclassification is made only if there is
a change in the business model for managing those
Trade Payables
Integrated Report
assets. Changes to the business model are expected
These amounts represents liabilities for goods and to be infrequent. The Company’s senior management
services provided to the Company prior to the end determines change in the business model as a result
of financial year which are unpaid. The amounts are of external or internal changes which are significant to
unsecured and are usually paid per the term of contract
the Company’s operations. Such changes are evident
with suppliers. Trade and other payables are presented
to external parties. A change in the business model
as current liabilities unless payment is not due within 12
occurs when the Company either begins or ceases to
months after the reporting period. They are recognized
perform an activity that is significant to its operations. If
initially at fair value and subsequently measured at
the Company reclassifies financial assets, it applies the
14-44
amortized cost using Effective interest rate method.
reclassification prospectively from the reclassification
date which is the first day of the immediately next
Financial guarantee contracts
reporting period following the change in business
Financial guarantee contracts issued by the Company
model. The Company does not restate any previously
Statutory Reports
are those contracts that require a payment to be made
recognised gains, losses (including impairment gains
to reimburse the holder for a loss it incurs because the
or losses) or interest.
specified debtor fails to make a payment when due
in accordance with the terms of a debt instrument.
2.07 Derivative financial instruments and hedge
Financial guarantee contracts are recognized initially
accounting
as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the Initial recognition and subsequent measurement
guarantee. Subsequently, the liability is measured at Derivative financial instruments are initially recognised
the higher of the amount of loss allowance determined at fair value on the date on which a derivative contract
45-141
as per impairment requirements of IND AS 109 and the is entered into and are subsequently re-measured at
amount recognized less cumulative amortization. fair value. Derivatives are carried as financial assets
when the fair value is positive and as financial liabilities
Derecognition when the fair value is negative.
A financial liability is derecognised when the obligation

under the liability is discharged or cancelled or expires. The purchase contracts that meet the definition of
When an existing financial liability is replaced by another a derivative under Ind AS 109 are recognised in the
from the same lender on substantially different terms, or statement of profit and loss. Commodity contracts
the terms of an existing liability are substantially modified, that are entered into and continue to be held for the
such an exchange or modification is treated as the purpose of the receipt or delivery of a non-financial item
derecognition of the original liability and the recognition in accordance with the Company’s expected purchase,
of a new liability. The difference in the respective carrying sale or usage requirements are held at cost.
142-309
amounts is recognized in the statement of profit and loss.

Any gains or losses arising from changes in the fair
Offsetting of financial instruments value of derivatives are taken directly to profit or loss,
Financials assets and financial liabilities are offset except for the effective portion of cash flow hedges,
and the net amount is reported in the balance sheet which is recognised in OCI and later reclassified to
if there is a currently enforceable legal right to offset profit or loss when the hedge item affects profit or loss
the recognized amounts and there is an intention to or treated as basis adjustment if a hedged forecast
settle on a net basis, to realize the assets and settle the transaction subsequently results in the recognition of a
liabilities simultaneously. non-financial asset or non-financial liability.
163

For the purpose of hedge accounting, hedges are ineffective portion relating to commodity contracts
classified as: is recognised in other income or expenses.
(i) Fair value hedges when hedging the exposure to Amounts recognised as OCI are transferred to
changes in the fair value of a recognised asset or profit or loss when the hedged transaction affects
liability or an unrecognised firm commitment profit or loss, such as when the hedged financial
(ii) Cash flow hedges when hedging the exposure to income or financial expense is recognised or
variability in cash flows that is either attributable when a forecast sale occurs. When the hedged
to a particular risk associated with a recognised item is the cost of a non-financial asset or non-
asset or liability or a highly probable forecast financial liability, the amounts recognised as OCI
transaction or the foreign currency risk in an are transferred to the initial carrying amount of the
unrecognised firm commitment non-financial asset or liability.
(iii) Hedges of a net investment in a foreign operation If the hedging instrument expires or is sold,
terminated or exercised without replacement or
Hedges that meet the strict criteria for hedge accounting rollover (as part of the hedging strategy), or if its
are accounted for, as described below: designation as a hedge is revoked, or when the
hedge no longer meets the criteria for hedge
(i) Fair value hedges accounting, any cumulative gain or loss previously
The change in the fair value of a hedging recognised in OCI remains separately in equity
instrument is recognised in the statement of profit until the forecast transaction occurs or the foreign
and loss as finance costs. The change in the fair currency firm commitment is met.
value of the hedged item attributable to the risk
hedged is recorded as part of the carrying value 2.08 Investment in Subsidiaries and joint venture
of the hedged item and is also recognised in the The investment in subsidiary and Joint venture are
statement of profit and loss as finance costs. carried at cost as per IND AS 27. The Company
regardless of the nature of its involvement with an
For fair value hedges relating to items carried entity (the investee), determines whether it is a parent
at amortised cost, any adjustment to carrying
by assessing whether it controls the investee. The
value is amortised through profit or loss over
Company controls an investee when it is exposed, or
the remaining term of the hedge using the EIR
has rights, to variable returns from its involvement with
method. EIR amortization may begin as soon as
the investee and has the ability to affect those returns
an adjustment exists and no later than when the
through its power over the investee. Thus, the Company
hedged item ceases to be adjusted for changes in
controls an investee if and only if it has all the following:
its fair value attributable to the risk being hedged.
(a) power over the investee;

If the hedged item is derecognised, the
unamortised fair value is recognised immediately (b)
exposure, or rights, to variable returns from its
in profit or loss. When an unrecognised firm involvement with the investee and
commitment is designated as a hedged item, the (c) the ability to use its power over the investee to
subsequent cumulative change in the fair value of affect the amount of the returns.
the firm commitment attributable to the hedged
risk is recognised as an asset or liability with a Investments are accounted in accordance with IND
corresponding gain or loss recognised in profit AS 105 when they are classified as held for sale. On
and loss. disposal of investment, the difference between its
carrying amount and net disposal proceeds is charged
(ii) Cash flow hedges or credited to the statement of profit and loss

The effective portion of the gain or loss
2.09 Inventories
on the hedging instrument is recognised
in OCI in the cash flow hedge reserve, a) Basis of valuation:
while any ineffective portion is recognised i)
Inventories other than scrap materials are
immediately in the statement of profit and loss. valued at lower of cost and net realizable
The ineffective portion relating to foreign currency value after providing cost of obsolescence, if
contracts is recognised in finance costs and the any. However, materials and other items held
164
Introduction 01-13
for use in the production of inventories are not i) The appropriate level of management is committed
written down below cost unless the finished to a plan to sell the asset
products in which they will be incorporated
are expected to be sold at or above cost. The ii)
An active programme to locate a buyer and
comparison of cost and net realizable value complete the plan has been initiated (if applicable)
is made on an item-by-item basis.
iii) The asset is being actively marketed for sale at
ii)
Inventory of scrap materials have been a price that is reasonable in relation to its current
valued at net realizable value. fair value,
b) Method of Valuation: iv) The sale is expected to qualify for recognition as
Integrated Report
i) Cost of raw materials has been determined a completed sale within one year from the date of
by using moving weighted average cost classification, and
method and comprises all costs of purchase,
duties, taxes (other than those subsequently v) Actions required to complete the plan indicate that
recoverable from tax authorities) and all other it is unlikely that significant changes to the plan
costs incurred in bringing the inventories to will be made or that the plan will be withdrawn.
their present location and condition.
The criteria for held for sale classification is regarded as
ii) Cost of finished goods and work-in-progress met only when the sale is highly probable and the asset
14-44
includes direct labour and an appropriate is available for immediate sale in its present condition
share of fixed and variable production and the assets must have actively marketed for sale
overheads. Fixed production overheads are at a price that is reasonable in relation to its current
allocated on the basis of normal capacity of
Statutory Reports
fair value. Actions required to complete the sale should
production facilities. Cost is determined on
indicate that it is unlikely that significant changes to the
moving weighted average basis.
plan to sale these assets will be made. Management
iii) Cost of traded goods has been determined must be committed to the sale, which should be
by using moving weighted average cost expected to qualify for recognition as a completed sale
method and comprises all costs of purchase, within one year from the date of classification.
duties, taxes (other than those subsequently
recoverable from tax authorities) and all other Property, plant and equipment and intangible assets
costs incurred in bringing the inventories to once classified as held for sale are not depreciated or
45-141
their present location and condition. amortized. Assets and liabilities classified as held for
sale are presented separately as current items in the
iv) Net realizable value is the estimated selling
balance sheet.
price in the ordinary course of business, less
estimated costs of completion and estimated
costs necessary to make the sale.

2.11 Income Tax
The income tax expense or credit for the period is the
2.10 Non-current assets held for sale tax payable on the current period’s taxable income
The Company classifies non-current assets as held for based on the applicable income tax rate adjusted
sale if their carrying amounts will be recovered principally by changes in deferred tax assets and liabilities
through a sale rather than through continuing use and attributable to temporary differences and to unused tax
the sale is considered highly probable. Such non-current losses. Income Tax expense for the year comprises of
assets classified as held for sale are measured at the current tax and deferred tax.
142-309
lower of their carrying amount and fair value less costs

to sell. Any expected loss is recognized immediately in a) Current income tax
the statement of profit and loss. Current income tax, assets and liabilities are
The criteria for held for sale classification is regarded as measured at the amount expected to be paid
met only when the assets is available for immediate sale in to or recovered from the taxation authorities in
its present condition, subject only to terms that are usual accordance with the Income Tax Act, 1961 and the
and customary for sales of such assets, its sale is highly Income Computation and Disclosure Standards
probable; and it will genuinely be sold. The Company (ICDS) enacted in India by using tax rates and the
treats sale of the asset to be highly probable when: tax laws that are enacted at the reporting date.
165

The current income tax charge is calculated on tax assets are recognised to the extent that it is
the basis of the tax laws enacted or substantively probable that taxable profit will be available against
enacted at the end of the reporting period in the which the deductible temporary differences, and
countries where the company and its subsidiaries the carry forward of unused tax credits and unused
and associates operate and generate taxable tax losses can be utilised, except:
income. Management periodically evaluates
positions taken in tax returns with respect to i) When the deferred tax asset relating to the
situations in which applicable tax regulation is deductible temporary difference arises from
subject to interpretation and considers whether the initial recognition of an asset or liability in a
it is probable that a taxation authority will accept transaction that is not a business combination
an uncertain tax treatment. The group measures and, at the time of the transaction, affects
its tax balances either based on the most likely neither the accounting profit nor taxable
amount or the expected value, depending on profit or loss.
which method provides a better prediction of the
resolution of the uncertainty. ii)
In respect of deductible temporary
differences associated with investments in
Current income tax relating to item recognized subsidiaries, associates and interests in joint
outside the statement of profit and loss is ventures, deferred tax assets are recognised
recognized outside profit or loss (either in other only to the extent that it is probable that the
comprehensive income or equity).Current temporary differences will reverse in the
tax items are recognized in correlation to the foreseeable future and taxable profit will
underlying transactions either in OCI or directly in be available against which the temporary
equity. differences can be utilised.
b) Deferred Tax The carrying amount of deferred tax assets is

Deferred tax is provided in full using the liability reviewed at each reporting date and reduced
method on temporary differences arising between to the extent that it is no longer probable that
the tax bases of assets and liabilities and their sufficient taxable profit will be available to allow
carrying amounts in the financial statements. all or part of the deferred tax asset to be utilized.
However, deferred tax liabilities are not recognised Unrecognized deferred tax assets are re-assessed
if they arise from the initial recognition of goodwill. at each reporting date and are recognized to the
extent that it has become probable that future
Deferred tax liabilities are recognised for all taxable profits will allow the deferred tax asset to
taxable temporary differences, except: be recovered.
i) When the deferred tax liability arises from Deferred tax assets and liabilities are measured at the
the initial recognition of goodwill or an tax rates that are expected to apply in the year when
asset or liability in a transaction that is not a the asset is realized or the liability is settled, based on
business combination and, at the time of the tax rates (and tax laws) that have been enacted or
transaction, affects neither the accounting substantively enacted at the reporting date.
profit nor taxable profit or loss
Deferred tax relating to items recognized outside the
ii) In respect of taxable temporary differences statement of profit and loss is recognized outside
associated with investments in subsidiaries, the statement of profit and loss (either in other
associates and interests in joint ventures, comprehensive income or in equity). Deferred tax
when the timing of the reversal of the items are recognized in correlation to the underlying
temporary differences can be controlled and transaction either in OCI or direct in equity.
it is probable that the temporary differences
will not reverse in the foreseeable future Tax benefits acquired as part of a business
combination, but not satisfying the criteria for
Deferred tax assets are recognised for all deductible separate recognition at that date, are recognised
temporary differences, the carry forward of unused subsequently if new information about facts and
tax credits and any unused tax losses. Deferred circumstances change. Acquired deferred tax
166
Introduction 01-13
benefits recognised within the measurement (i) Variable consideration

period reduce goodwill related to that acquisition The Company recognizes revenue from the
if they result from new information obtained about sale of goods measured at the fair value of
facts and circumstances existing at the acquisition the consideration received or receivable, net
date. If the carrying amount of goodwill is zero, any of returns and allowances, trade discounts
remaining deferred tax benefits are recognised in and volume rebates. If the consideration
OCI/ capital reserve depending on the principle in a contract includes a variable amount,
explained for bargain purchase gains. All other the Company estimates the amount of
acquired tax benefits realized are recognised in consideration to which it will be entitled
profit or loss.
Integrated Report
in exchange for transferring the goods to
the customer. The variable consideration
2.12 Revenue from contract with customers is estimated at contract inception and

The Company manufactures/ trades and sells a constrained until it is highly probable that a
range of consumer electrical and electronic products. significant revenue reversal in the amount
Revenue from contracts with customers involving sale of cumulative revenue recognised will not
of these products is recognized at a point in time occur when the associated uncertainty with
when control of the product has been transferred, the variable consideration is subsequently
and there are no unfulfilled obligation that could affect resolved. The Company operates several
14-44
the customer’s acceptance of the products which sales incentive programmes wherein the
usually happen on delivery of goods. Delivery occurs customers are eligible for several benefits
when the products are shipped to specific location on achievement of underlying conditions
and control has been transferred to the customers. as prescribed in the scheme programme
Statutory Reports
The Company also provides installation, annual such as credit notes, reimbursement,
maintenance and warranty services that are either sold investments etc. Revenue from contract
separately or bundled together with the sale of goods. with customer is presented after deducting
The Company recognizes these service revenue from cost of all these schemes.
sales of services over a period of time, because the
customer simultaneously receives and consumes the (ii)
Warranty obligations
benefits provided by the Company. The Company has
The Company generally provides for
objective evidence that all criterion for acceptance warranties for general repair of defects.
45-141
has been satisfied. A receivable is recognised These warranties are assurance-type
when the control of the product is transferred as the warranties under Ind AS 115, which are
consideration is unconditional and payment becomes accounted for under Ind AS 37 (Provisions,
due upon passage of time as per the terms of contract Contingent Liabilities and Contingent
with customers. Assets), consistent with its current practice.
However, in certain non-standard contracts in

(a) Sale of goods respect of sale of consumer durable goods,
Revenue from sale of goods is recognised at the Company provides extended warranties
the point in time when control of the goods and such warranties are termed as service-
is transferred to the customer, generally on type warranties and therefore, accounted
delivery of the goods and there are no unfulfilled for as separate performance obligations to
obligations. which the Company allocates a portion of the
transaction price. Revenue from service-type
142-309
The Company considers, whether there are other warranties is recognised over the period in
promises in the contract in which their are separate which the service is provided based on the
performance obligations, to which a portion of time elapsed
the transaction price needs to be allocated. In
determining the transaction price for the sale (iii) Significant Financing Components
of goods, the Company allocates a portion of In respect of short-term advances from its
the transaction price to different performance customers, using the practical expedient in
obligations goods bases on its relative standalone Ind AS 115, the Company does not adjust
prices and also considers the following:- the promised amount of consideration for the
167

effects of a significant financing component customer. If a customer pays consideration

if it expects, at contract inception, that the before the Company transfers goods or services
period between the transfer of the promised to the customer, a contract liability is recognised
good or service to the customer and when when the payment is made or the payment is
the customer pays for that good or service due (whichever is earlier). Contract liabilities
will be within normal operating cycle. are recognised as revenue when the Company
In respect of long term contracts, the performs under the contract (i.e., transfers control
transaction price for these contracts is of the related goods or services to the customer).
discounted, using the interest rate implicit
in the contract (i.e., the interest rate that A trade receivable is recognised if an amount of
discounts the cash selling price of the consideration that is unconditional (i.e., only the
equipment to the amount paid in advance). passage of time is required before payment of
the consideration is due). Refer to accounting
(b) Sale of services policies of financial assets in section (Financial

The Company provides installation, annual instruments – initial recognition and subsequent
maintenance and extended warranty services that measurement).
are either sold separately or bundled together with
the sale of goods. Contracts for bundled sales of 2.13 Other Income
equipment and installation services are comprised (a) Interest Income
of two performance obligations because the For all debt instruments measured either at
equipment and installation services are both amortised cost or at fair value through other
sold on a stand-alone basis and are distinct comprehensive income, interest income is
within the context of contract. Accordingly, the recorded using the effective interest rate (EIR).
Company allocates the transaction price based EIR is the rate that exactly discounts the estimated
on the relative stand-alone selling prices of the future cash payments or receipts over the expected
equipment and installation services The Company life of the financial instrument or a shorter period,
recognizes revenue from sales of services over where appropriate, to the gross carrying amount
time, because the customer simultaneously of the financial asset or to the amortised cost of
receives and consumes the benefits provided a financial liability. When calculating the effective
by the Company. Revenue from services related interest rate, the Company estimates the expected
activities is recognised as and when services are cash flows by considering all the contractual
rendered and on the basis of contractual terms terms of the financial instrument (for example,
with the parties. prepayment, extension, call and similar options)
but does not consider the expected credit losses.
(c) Contract balances Interest income is included in other income in the
A contract asset is the right to consideration in statement of profit and loss.
exchange for goods or services transferred to
the customer. Contract assets are in the nature of 2.14 Other Operating Revenues
unbilled receivables, which arises when Company (a) Export benefit
satisfies a performance obligation but does not
Revenue from export benefits arising from Duty
have an unconditional rights to consideration.A
entitlement pass book (DEPB scheme), duty
receivables represents the Company’s right to
drawback scheme, merchandise export incentive
an amount of consideration that is unconditional.
scheme are recognised on export of goods in
Contract assets are subject to impairment
accordance with their respective underlying
assessment. Refer to accounting policies on
scheme at fair value of consideration received or
impairment of financial assets in section (Financial
receivable.
instruments – initial recognition and subsequent
measurement). (b) Government Grants
A contract liability is the obligation to transfer Government Grants are recognized at their fair
goods or services to a customer for which value when there is reasonable assurance that
the Company has received consideration (or the grant will be received and all the attached
an amount of consideration is due) from the conditions will be complied with.
168
Introduction 01-13
When the grant relates to an expense item, it is benefit liability and the return on plan assets
recognized as income on a systematic basis (excluding amounts included in net interest on the net
over the periods that the related costs, for which defined benefit liability), are recognized immediately
it is intended to compensate, are expensed. in the Balance Sheet with a corresponding debit
Government grant related to the non-monetary or credit to retained earnings through other
asset are recognised at nominal value and comprehensive income in the period in which they
presented by deducting the same from carrying occur. Remeasurements are not reclassified to profit
amount of related asset and the grant is then or loss in subsequent periods.
recognised in profit or loss over the useful life
of the depreciable asset by way of a reduced b) Provident fund
Integrated Report
depreciation charge. Retirement benefit in the form of provident
fund is a defined contribution scheme. the
2.15 Retirement and other employee benefits Company has no obligation, other than the
(i) Short-term obligations contribution payable to the provident fund.
Liabilities for wages and salaries, including non The Company recognizes contribution
monetary benefits that are expected to be settled payable through provident fund scheme
wholly within twelve months after the end of the period as an expense, when an employee renders
in which the employees render the related service the related services. If the contribution
14-44
are recognized in respect of employee service upto payable to scheme for service received
the end of the reporting period and are measured at before the balance sheet date exceeds the
the amount expected to be paid when the liabilities contribution already paid, the deficit payable
are settled. The liabilities are presented as current to the scheme is recognized as liability after
Statutory Reports
employee benefit obligations in the balance sheet. deducting the contribution already paid. If
the contribution already paid exceeds the
(ii) Other long-term employee benefit obligations
contribution due for services received before
a) Gratuity the balance sheet date, then excesses
The Employee’s Gratuity Fund Scheme, which recognized as an asset to the extent that
is defined benefit plan, is managed by Trust the prepayment will lead to, for example, a
with its investments maintained with Bajaj reduction in future payment or a cash refund.
Allianz Life Insurance Co.Ltd. The liabilities
with respect to Gratuity Plan are determined c) Other employee benefits
45-141
by actuarial valuation on projected unit credit The Company provides long term incentive
method on the balance sheet date, based plan to employees via equity settled share
upon which the Company contributes to based payments as enumerated below:
the Gratuity Scheme. The difference, if any,
between the actuarial valuation of the gratuity (i)

Havells Employees Long term Incentive
of employees at the year end and the balance plan:
of funds is provided for as assets/ (liability)
The fair value of options granted under this
in the books. Net interest is calculated by
option plan is recognised as an employee
applying the discount rate to the net defined
benefit expense with corresponding increase
benefit liability or asset. The Company
in equity in accordance with recognition and
recognizes the following changes in the net
measurement principles as prescribed in Ind
defined benefit obligation under Employee
AS 102 Share Based Payments when grant is
142-309
benefit expense in statement of profit or loss:

made. The total expense is recognised over
a)
Service costs comprising current service the vesting period, which is the period over
costs, past-service costs, gains and losses which all of the specified vesting conditions
on curtailments and non-routine settlements are to be satisfied. At end of the reporting
b) Net interest expense or income period, the entity revises its estimates of
the number of options that are expected
Remeasurements, comprising of actuarial gains to vest based on the non-market vesting
and losses, the effect of the asset ceiling, excluding and service conditions. It recognizes the
amounts included in net interest on the net defined impact of the revision to original estimates,
169

if any, in profit or loss, with corresponding lives of the building (i.e. 30 and 60 years)
adjustment to equity.
If ownership of the leased asset transfers to the
(ii)
Havells Employee Stock Purchase Plan: Company at the end of the lease term or the
These are in nature of employee benefit cost reflects the exercise of a purchase option,
wherein employees (including senior depreciation is calculated using the estimated
executives) of the Company purchase shares useful life of the asset. The right-of-use assets
of the Company at fair value on the grant cum are also subject to impairment. Refer to the
allotment date and receives remuneration in accounting policies in section ‘Impairment of non-
the form of ex-gratia equivalent to predefined financial assets’.
percentage of purchase price paid by
designated employee subject to serving The Company classifies ROU assets as part of
of relevant period of service after the grant Property plant and equipment in Balance Sheet
cum allotment date. These are recognised at and lease laibility in “ Financial Liability”.
fair value of shares granted and allotted as
employee benefit expense over the period of (ii) Lease Liabilities
employee serving relevant period. At the commencement date of the lease, the
Company recognises lease liabilities measured at
2.16 Leases the present value of lease payments to be made
The Company assesses at contract inception whether over the lease term. The lease payments include
a contract is, or contains, a lease. That is, if the contract fixed payments (including in substance fixed
conveys the right to control the use of an identified asset payments) less any lease incentives receivable,
for a period of time in exchange for consideration. variable lease payments that depend on an index
or a rate, and amounts expected to be paid under
Company as a lessee residual value guarantees. The lease payments
also include the exercise price of a purchase
The Company’s lease asset classes primarily comprise
option reasonably certain to be exercised by
of lease for land and building. The Company applies
the Company and payments of penalties for
a single recognition and measurement approach for
terminating the lease, if the lease term reflects
all leases, except for short-term leases and leases
the Company exercising the option to terminate.
of low-value assets. The Company recognises lease
Variable lease payments that do not depend on
liabilities to make lease payments and right-of-use
an index or a rate are recognised as expenses
assets representing the right to use the underlying
(unless they are incurred to produce inventories)
assets.As practical expedient of Ind AS 116 “Leases”,
in the period in which the event or condition that
the company has considered Covid-19-related rent
triggers the payment occurs.
concessions not to be lease modification, hence the
income towards rent concession is recognised in “Other
In calculating the present value of lease payments,
Income” in the statement of profit and loss account. the Company uses its incremental borrowing rate
at the lease commencement date because the
(i) Right-of-use assets (ROU)
interest rate implicit in the lease is not readily
The Company recognises right-of-use assets at determinable. After the commencement date, the
the commencement date of the lease (i.e., the amount of lease liabilities is increased to reflect
date the underlying asset is available for use). the accretion of interest and reduced for the
Right-of-use assets are measured at cost, less any lease payments made. In addition, the carrying
accumulated depreciation and impairment losses, amount of lease liabilities is remeasured if there
and adjusted for any remeasurement of lease is a modification, a change in the lease term, a
liabilities. The cost of right-of-use assets includes change in the lease payments (e.g., changes
the amount of lease liabilities recognised, initial to future payments resulting from a change in
direct costs incurred, and lease payments made an index or rate used to determine such lease
at or before the commencement date less any payments) or a change in the assessment of an
lease incentives received. Right-of-use assets option to purchase the underlying asset.
are depreciated on a straight-line basis over the
shorter of the lease term and the estimated useful Lease payments are allocated between principal
170
Introduction 01-13
and finance cost. The finance cost is charged 5

Segment assets and liabilities include those
to profit or loss over the lease period so as to directly identifiable with the respective segments.
produce a constant periodic rate of interest on the Unallocable assets and liabilities represent the
remaining balance of the liability for each period. assets and liabilities that relate to the Company as
a whole and not allocable to any segment.
Variable lease payments that depend on sales are
recognised in profit or loss in the period in which 6
Segment revenue resulting from transactions
the condition that triggers those payments occurs. with other business segments is accounted
on the basis of transfer price agreed between
(iii) Short-term leases and leases of low-value assets the segments. Such transfer prices are either
Integrated Report
determined to yield a desired margin or agreed

The Company applies the short-term lease
on a negotiated business.
recognition exemption to its short-term leases (i.e.,
those leases that have a lease term of 12 months
2.18 Earnings Per Share
or less from the commencement date and do not
contain a purchase option). It also applies the Basic earnings per share are calculated by dividing
lease of low-value assets recognition exemption the net profit or loss for the period attributable to
to leases that are considered to be low value. equity shareholders by the weighted average number
Lease payments on short-term leases and leases of equity shares outstanding during the period. The
of low-value assets are recognised as expense on weighted average number of equity shares outstanding
14-44
a straight-line basis over the lease term. during the period is adjusted for events such as bonus
issue, bonus element in a rights issue, share split, and
2.17 Segment reporting : reverse share split (consolidation of shares) if any that
have changed the number of equity shares outstanding,
Statutory Reports

Operating segments are reported in a manner
without a corresponding change in resources.
consistent with the internal reporting provided to the
chief operating decision maker. The Board of directors
For the purpose of calculating diluted earnings per
monitors the operating results of all product segments
share, the net profit or loss for the period attributable to
separately for the purpose of making decisions about
equity shareholders and the weighted average number
resource allocation and performance assessment.
of shares outstanding during the period are adjusted
Segment performance is evaluated based on profit and
for the effect of all potentially dilutive equity shares.
loss and is measured consistently with profit and loss in
the financial statements.
45-141
2.19 Borrowing Costs
The operating segments have been identified on the
Borrowing cost includes interest and other costs
basis of the nature of products/services. Further: incurred in connection with the borrowing of funds and
charged to Statement of Profit & Loss on the basis of Financial Statements
1 Segment revenue includes sales and other income effective interest rate (EIR) method. Borrowing cost also
directly identifiable with / allocable to the segment includes exchange differences to the extent regarded
including inter - segment revenue. as an adjustment to the borrowing cost.
2
Expenses that are directly identifiable with Borrowing costs directly attributable to the acquisition,
/ allocable to segments are considered for construction or production of an asset that necessarily
determining the segment result. Expenses which takes a substantial period of time to get ready for its
relate to the Company as a whole and not allocable intended use or sale are capitalized as part of the
cost of the respective asset. All other borrowing costs
142-309
to segments are included under unallocable

expenditure. are recognized as expense in the period in which
they occur.
3 Income which relates to the Company as a whole
and not allocable to segments is included in 2.20 Cash and cash equivalents
unallocable income. Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits
4
Segment results includes margins on inter- with an original maturity of three months or less, that
segment sales which are reduced in arriving at the are readily convertible to a known amount of cash and
profit before tax of the Company. subject to an insignificant risk of changes in value.
171

For the purpose of presentation in the statement of 2.22 Provisions and Contingent Liabilities
cash flows, cash and cash equivalents includes cash Provisions
on hand, deposit held at call with financial institutions,
A provision is recognized when the Company has a
other short - term, highly liquid investments with original
present obligation (legal or constructive) as a result of
maturities of three months or less that are readily
past event, it is probable that an outflow of resources
convertible to known amounts of cash and which are
embodying economic benefits will be required to settle
subject to an insignificant risk of changes in value,
the obligation and a reliable estimate can be made
and bank overdrafts. Bank overdrafts are shown within
of the amount of the obligation. These estimates are
borrowings in current liabilities in the balance sheet.
reviewed at each reporting date and adjusted to reflect
the current best estimates. If the effect of the time value
2.21 Foreign currency translation
of money is material, provisions are discounted using a
(i) Functional and presentation currency current pre-tax rate that reflects, when appropriate, the
Items included in the financial statements are risks specific to the liability. When discounting is used,
measured using the currency of the primary the increase in the provision due to the passage of time
economic environment in which the entity operates is recognized as a finance cost.
(‘the functional currency’). The Company’s
financial statements are presented in Indian rupee Warranty Provisions
(INR) which is also the Company’s functional and Provision for warranty-related costs are recognized
presentation currency. when the product is sold or service is provided to
customer. Initial recognition is based on historical
(ii) Transactions and balances experience. the Company periodically reviews the

Foreign currency transactions are translated adequacy of product warranties and adjust warranty
into the functional currency using the exchange percentage and warranty provisions for actual
rate prevailing at the date of the transaction. experience, if necessary. The timing of outflow is
Foreign exchange gains and losses resulting expected to be with in one to seven years.
from the settlement of such transaction and from
the translation of monetary assets and liabilities Provision for E-Waste
denominated in foreign currencies at year end
Provision for E-Waste management costs are
exchange rate are generally recognised in the recognized when the liability in respect of products sold
statement of profit and loss. to customer is established in accordance with E-waste
Management Rules, 2016 as notified by Government of
Non-monetary items that are measured in terms of India. Initial recognition is based on liability computed
historical cost in a foreign currency are translated based on Extended Producer Responsibility as
using the exchange rates at the dates of the initial promulgated in said Rules including cost to comply the
transactions. Non-monetary items measured said regulation and as reduced by expected realisation
at fair value in a foreign currency are translated of collectable waste. The Comapny has assessed the
using the exchange rates at the date when the fair liability to arise on year to year basis.
value is determined.
Contingent liabilities
(iii) Exchange differences A contingent liability is a possible obligation that arises
Exchange differences arising on settlement or from past events whose existence will be confirmed
translation of monetary items are recognized as by the occurrence or non-occurrence of one or more
income or expense in the period in which they uncertain future events beyond the control of the
arise with the exception of exchange differences Company or a present obligation that is not recognized
on gain or loss arising on translation of non- because it is not probable that an outflow of resources
monetary items measured at fair value which is will be required to settle the obligation. A contingent
treated in line with the recognition of the gain or liability also arises in extremely rare cases, where there
loss on the change in fair value of the item (i.e., is a liability that cannot be recognized because it cannot
translation differences on items whose fair value be measured reliably. the Company does not recognize
gain or loss is recognized in OCI or profit or a contingent liability but discloses its existence in the
loss are also recognized in OCI or profit or loss, financial statements unless the probability of outflow of
respectively). resources is remote.
172
Introduction 01-13
Provisions, contingent liabilities, contingent assets and Level 1- Quoted(unadjusted) market prices in active
commitments are reviewed at each balance sheet date. markets for identical assets or liabilities
2.23 Dividend Distributions Level 2- Valuation techniques for which the lowest level
The Company recognizes a liability to make the payment input that is significant to the fair value measurement is
of dividend to owners of equity, when the distribution directly or indirectly observable
is authorised and the distribution is no longer at the
discretion of the Company. As per the corporate laws
Level 3- Valuation techniques for which the lowest level
in India, a distribution is authorised when it is approved input that is significant to the fair value measurement is
by the shareholders. A corresponding amount is unobservable
Integrated Report
recognised directly in equity.
For assets and liabilities that are recognized in the
2.24 Fair value measurement financial statements on a recurring basis, the Company
determines whether transfers have occurred between
The Company measures financial instruments at fair
levels in the hierarchy by re-assessing categorization
value at each balance sheet date.
(based on the lowest level input that is significant to
fair value measurement as a whole) at the end of each
Fair value is the price that would be received to sell
reporting period.
an asset or paid to transfer a liability in an ordinary
14-44
transaction between market participants at the
For the purpose of fair value disclosures, the Company
measurement date. The fair value measurement is
has determined classes of assets and liabilities on the
based on the presumption that the transaction to sell
basis of the nature, characteristics and risks of the
the asset or transfer the liability takes place either:
asset or liability and the level of the fair value hierarchy
Statutory Reports
as explained above.
(i) In the principal market for asset or liability, or
2.25 Business Combinations
(ii) In the absence of a principal market, in the most
advantageous market for the asset or liability. (i) Business combinations are accounted for using
the acquisition method. The cost of an acquisition
The principal or the most advantageous market must is measured as the aggregate of the consideration
be accessible by the Company. transferred measured at acquisition date fair value
and the amount of any non-controlling interests
45-141
The fair value of an asset or liability is measured using in the acquiree. For each business combination,
the assumptions that market participants would use the Company elects whether to measure the non-
when pricing the asset or liability, assuming that market controlling interests in the acquiree at fair value
participants act in their economic best interest. or at the proportionate share of the acquiree’s Financial Statements
identifiable net assets. Acquisition-related costs
A fair value measurement of a non- financial asset takes are expensed as incurred.
into account a market participant’s ability to generate
economic benefits by using the asset in its highest and At the acquisition date, the identifiable assets
best use or by selling it to another market participant acquired, and the liabilities assumed are
that would use the asset in its highest and best use. recognised at their acquisition date fair values.
For this purpose, the liabilities assumed include
The Company uses valuation techniques that are contingent liabilities representing present
142-309
appropriate in the circumstances and for which obligation and they are measured at their
sufficient data are available to measure fair value, acquisition fair values irrespective of the fact
maximising the use of relevant observable inputs and that outflow of resources embodying economic
minimizing the use of unobservable inputs. benefits is not probable.
All assets and liabilities for which fair value is measured (ii)
Business Combinations involving entities or
or disclosed in the financial statements are categorized businesses in which all the combining entities
within the fair value hierarchy, described as follows, or businesses are ultimately controlled by the
based on the lowest level input that is significant to the same party or parties both before and after the
fair value measurement as a whole: business combination, and where that control is
173

not transitory is accounted using the pooling of a) Leases

interests method as enumerated below: The Company determines the lease term as the
non-cancellable term of the lease, together with
a)
The assets and liabilities of the combining
any periods covered by an option to extend the
entities are reflected at their carrying amounts.
lease if it is reasonably certain to be exercised, or
b)
No adjustments are made to reflect fair any periods covered by an option to terminate the
values, or recognise any new assets or lease, if it is reasonably certain not to be exercised.
liabilities. The only adjustments that are
made are to harmonise accounting policies. The Company has several lease contracts that
include extension and termination options.
c)
The financial information in the financial The Company applies judgement in evaluating
statements in respect of prior periods should whether it is reasonably certain whether or not to
be restated as if the business combination exercise the option to renew or terminate the lease.
had occurred from the beginning of That is, it considers all relevant factors that create
the preceding period in the financial an economic incentive for it to exercise either the
statements, irrespective of the actual date renewal or termination. After the commencement
of the combination. However, if business date, the Company reassesses the lease term
combination had occurred after that date, the if there is a significant event or change in
prior period information shall be restated only circumstances that is within its control and affects
from that date. its ability to exercise or not to exercise the option
to renew or to terminate (e.g., construction of
d)
The balance of the retained earnings significant leasehold improvements or significant
appearing in the financial statements of the customisation to the leased asset).
transferor is aggregated with corresponding
balance appearing in the financial statements Refer to Note 33(10) for information on potential
of the transferee or is adjusted against future rental payments relating to periods following
revenue reserve. the exercise date of extension and termination
options that are not included in the lease term.
e) The identity of the reserves shall be preserved
and shall appear in the financial statements b) Revenue from contract with customers
of the transferee in the same form in which The Company applied judgements that affect the
they appeared in the financial statements of determination of the amount and timing of revenue
the transferor. from contracts with customers, such as identifying
performance obligations in a bundled sales
f) The difference, if any, between the amounts
transactions, wherein, the Company sell goods
recorded as share capital issued plus any
and maintenance/ warranty services separately or
additional consideration in the form of cash or
bundled together with sales of goods. In certain
other assets and the amount of share capital
non-standard contracts, where the Company
of the transferor is transferred to revenue
provides extended warranties in respect of sale of
reserves.
consumer durable goods, the Company allocates
the portion of the transaction price to goods based
2.26
Significant accounting judgments, estimates
on its relative standalone prices. Also, certain
and assumptions
contracts of sale includes volume rebates that

The preparation of these standalone financial give rise to variable consideration. In estimating
statements requires the management to make the variable consideration the Company has used
judgments, use estimates and assumptions that affect a combination of most likely amount method and
the reported amounts of revenues, expenses, assets expected value method. Further, as the case may
and liabilities, and the accompanying disclosures, and be, in respect of long term contracts, the Company
the disclosure of contingent liabilities. Uncertainty about has used the incremental borrowing rate to the
these judgements, assumptions and estimates could discount the consideration as this is the rate which
result in outcomes that require a material adjustment to commensurate with rate that would be reflected
the carrying amount of the asset or liability affected in in separate financing arrangement between the
future periods. Company and its customer.
174
Introduction 01-13
c) Taxes Judgments include considerations of inputs such

Uncertainties exist with respect to the interpretation as liquidity risk, credit risk and volatility. Changes
of tax regulations, changes in tax laws, and the in assumptions about these factors could affect
amount and timing of future taxable income. the reported fair value of financial instruments.
Given the wide range of business relationships
differences arising between the actual results f) Impairment of financial assets
and the assumptions made, or future changes The impairment provisions of financial assets are
to such assumptions, could necessitate future based on assumptions about risk of default and
adjustments to tax income and expense already expected loss rates. the Company uses judgment
in making these assumptions and selecting the
Integrated Report
recorded. The Company establishes provisions,
based on reasonable estimates. The amount inputs to the impairment calculation, based on
of such provisions is based on various factors, Company’s past history, existing market conditions
such as experience of previous tax audits and as well as forward looking estimates at the end of
differing interpretations of tax regulations by the each reporting period. (Refer Note 31)
taxable entity and the responsible tax authority.
(Refer Note 17) g) Impairment of non-financial assets
The Company assesses at each reporting date
d) Gratuity benefit whether there is an indication that an asset
14-44
The cost of defined benefit plans (i.e. Gratuity including intangible assets having indefinite
benefit) is determined using actuarial valuations. useful life and goodwill may be impaired. If any
An actuarial valuation involves making various indication exists, or when annual impairment
assumptions which may differ from actual testing for an asset is required, the Company
Statutory Reports
developments in the future. These include the estimates the asset’s recoverable amount. An
determination of the discount rate, future salary assets recoverable amount is the higher of an
increases, mortality rates and future pension asset’s CGU’S fair value less cost of disposal and
increases. Due to the complexity of the valuation, its value in use. Where the carrying amount of an
the underlying assumptions and its long-term asset or CGU exceeds its recoverable amount,
nature, a defined benefit obligation is highly the asset is considered impaired and is written
sensitive to changes in these assumptions. All down to its recoverable amount.
assumptions are reviewed at each reporting
45-141
date. In determining the appropriate discount In assessing value in use, the estimated future
rate, management considers the interest rates of cash flows are estimated based on past rend
long term government bonds with extrapolated and discounted to their present value using a
maturity corresponding to the expected duration pre-tax discount rate that reflects current market
of the defined benefit obligation. The mortality assessments of the time value of money and the
rate is based on publicly available mortality risks specific to the asset. In determining fair value
tables for India. Future salary increases and less costs of disposal, recent market transactions
pension increases are based on expected future are taken into account. If no such transactions
inflation rates for India. Further details about the can be identified, an appropriate valuation model
assumptions used, including a sensitivity analysis, is used. These calculations are corroborated by
are given in Note 33(4). valuation multiples, or other fair value indicators.
(Refer Note no 30)
e) Fair value measurement of financial instrument
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When the fair value of financial assets and h) Provision for warranty and e- waste
financial liabilities recorded in the balance sheet Warranty provisions is determined based on the
cannot be measured based on quoted prices in historical percentage of warranty expense to
active markets, their fair value is measured using sales for the same types of goods for which the
valuation techniques including the Discounted warranty is currently being determined. The same
Cash Flow (DCF) model. The inputs to these percentage to the sales is applied for the current
models are taken from observable markets where accounting period to derive the warranty expense
possible, but where this is not feasible, a degree to be accrued. In respect of e-waste, management
of judgment is required in establishing fair values. calculates the obligation in accordance with
175

E-Waste management Rules, 2016 and accounts/

The assessment of the correlation between
fulfil the obligation on its own account or on 3rd historical observed default rates, forecast economic
party service provider. It is adjusted to account for conditions and ECLs is a significant estimate.
unusual factors related to the goods that were sold, The amount of ECLs is sensitive to changes
such as defective inventory lying at the depots. in circumstances and of forecast economic
The warranty/e-waste claims may not exactly conditions. The Company’s historical credit loss
match the historical warranty/e-waste percentage, experience and forecast of economic conditions
so such estimates are reviewed annually for any may also not be representative of customer’s
material changes in assumptions and likelihood of actual default in the future. The information about
the ECLs on the Company’s trade receivables and
occurrence.The assumptions are consistent with
contract assets is disclosed in Note 33(10)
prior years. (Refer Note 20)
j) Property, Plant and Equipment and intangible
i) Provision for expected credit losses (ECL) of
assets
trade receivables and contract assets
Property, Plant and Equipment represent significant
The Company uses a provision matrix to calculate
portion of the asset base of the Company. The
ECLs for trade receivables and contract assets. charge in respect of periodic depreciation is derived
The provision rates are based on days past due after determining an estimate of assets expected
for groupings of various customer segments that useful life and expected value at the end of its useful
have similar loss patterns (i.e., by geography, life. The useful life and residual value of Company’s
product type, customer type and rating, and assets are determined by Management at the
coverage by letters of credit and other forms of time asset is acquired and reviewed periodically
credit insurance). The provision matrix is initially including at the end of each year. The useful life is
based on the Company’s historical observed based on historical experience with similar assets, in
default rates. The Company will calibrate the matrix anticipation of future events, which may have impact
to adjust the historical credit loss experience with on their life such as change in technology.
forward-looking information. At every reporting
date, the historical observed default rates are 2.27 Standards issued but not effective
updated and changes in the forward-looking There are no standards that are issued but not yet
estimates are analysed. effective on March 31, 2021.
176
3 Property, plant and equipment
(` in crores)
Freehold Leasehold Buildings Leasehold Plant and Moulds Furniture Vehicles R&D Office Electrical Right to use asset Total Capital Grand
Particulars Land Land Improvements Equipments and and Equipment's Equipment's Installations Leasehold Leasehold Work in Total
Dies fixtures Land Building progress
Gross carrying amount (at cost)
At April 01, 2019 27.28 185.38 706.04 16.81 580.30 143.25 39.02 12.11 25.34 91.75 42.53 - - 1,869.81 232.15 2,101.96
Reclassified on account of adoption of - (185.38) - - - - - - - - - 176.98 - (8.40) - (8.40)
Ind AS 116 "Leases"
{refer note (ii) (c) below}
Transition impact on account of adoption - - - - - - - - - - - - 129.59 129.59 - 129.59
of Ind AS 116 "Leases"
Additions - - 85.37 0.77 254.19 83.67 8.45 1.38 14.09 19.18 4.72 40.82 24.95 537.59 58.66 596.25
Disposals/adjustments - - 1.50 (4.20) (0.73) (0.31) (0.39) (0.67) (0.10) (2.45) (1.02) - (1.36) (9.73) (208.04) (217.77)
Transfers to assets classified as held for sale - - (1.17) - (4.15) (0.98) (0.44) - (1.28) (0.87) (0.11) - - (9.00) - (9.00)
At March 31, 2020 27.28 - 791.74 13.38 829.61 225.63 46.64 12.82 38.05 107.61 46.12 217.80 153.18 2,509.86 82.77 2,592.63
Additions - - 35.57 1.45 41.81 79.56 10.03 4.08 12.12 3.19 39.58 56.96 284.35 143.34 427.69
Recognition of grant related to assets - - (0.21) - (3.08) (2.83) (0.69) - - (1.17) (0.26) (17.71) - (25.95) - (25.95)
{Refer note (vi) below}
Disposals/adjustments - - (52.02) (1.67) (0.94) (1.37) (2.45) (0.08) - (1.79) (2.23) (11.39) (27.64) (101.58) (139.85) (241.43)
Transfers to assets classified as held - - - - (8.21) (5.54) - - (0.22) - - - (13.97) - (13.97)

for sale
At March 31, 2021 27.28 - 775.08 13.16 859.19 295.45 53.53 12.74 42.13 116.55 46.82 228.28 182.50 2,652.71 86.26 2,738.97
Accumulated Depreciation
At April 01, 2019 - 8.40 100.19 4.92 181.93 61.72 12.25 5.60 6.20 41.77 13.33 - - 436.31 - 436.31
Reclassified on account of adoption of - (8.40) - - - - - - - - - - - (8.40) - (8.40)
Ind AS 116 "Leases"
{refer note (ii) (c) below)
Charge for the year - - 28.78 2.57 62.11 24.77 4.57 1.71 5.12 19.51 4.54 2.16 36.53 192.37 - 192.37
177
Disposals/adjustments - - 0.82 (1.52) (0.52) (0.14) (0.28) (0.60) (0.08) (2.03) (0.24) - (0.38) (4.97) - (4.97)
Transfers to assets classified as held - - (0.10) - (2.12) (0.76) (0.23) - (0.89) (0.75) (0.04) - - (4.89) - (4.89)
for sale
At March 31, 2020 - - 129.69 5.97 241.40 85.59 16.31 6.71 10.35 58.50 17.59 2.16 36.15 610.42 - 610.42
Disposals/adjustments - - (11.56) (0.84) (0.66) (1.14) (1.28) (0.07) - (1.48) (1.92) (0.89) (9.02) (28.86) - (28.86)
Transfers to assets classified as held - - - - (7.63) (4.52) - - - (0.14) - - - (12.29) - (12.29)
for sale
At March 31, 2021 - - 148.57 6.86 309.93 119.85 20.15 8.05 16.52 77.80 20.96 3.71 59.61 792.01 - 792.01
Net carrying amount

At March 31, 2020 27.28 - 662.05 7.41 588.21 140.04 30.33 6.11 27.70 49.11 28.53 215.64 117.03 1,899.44 82.77 1,982.21
At March 31, 2021 27.28 - 626.51 6.30 549.26 175.60 33.38 4.69 25.61 38.75 25.86 224.57 122.89 1,860.70 86.26 1,946.96
Notes:
(i) All property, plant and equipment (excluding “Right of Use” as per Ind AS 116) are held in name of the company, except:
(a) Building situated, at Sahibabad, net block amounting to ` 26.74 Crores constructed on the land taken on lease by the company from its related party for which lease deed is yet to be registered
with the appropriate authority.
(b) Freehold land, located at Samaypur Badli, Delhi, net block amounting to ` 15.89 Crores (March 31, 2020: ` 15.89 Crores) and building constructed on such land, net block amounting to ` 1.05
Crores (March 31, 2020: ` 1.28 Crores) which is pending for registration with appropriate authority.
(ii) Right of Use asset includes:-
(a) “Leasehold Land” represents land obtained on long term lease from various Government authorities.
(b) Leasehold Building represents properties taken on lease for its offices and warehouses accounted for in accordance with principle of Ind AS 116 ‘Leases’. Refer Note 33(3)
(c) During the previous year the net block of Leasehold land of ` 176.98 crores (Gross block - ` 185.28 crores and accumulated depreciation - ` 8.40 crores) was reclassified to “Right of Use” assets
on account of adoption of Ind AS 116 “Leases”.
(iii) Capital work in progress as at March 31, 2021 includes assets under construction at various plants including water heater, cable and wires and switch gears, etc. Adjustment in relation to capital work
in progress relates to addition in property, plant and equipment made during the year.
(iv) Plant and machinery, generators, furniture and fixtures, electric fans and installations has been pledged/hypothecated as security by the company {refer note 32(C)}
(v) Disclosure of Contractual commitment for the acquisition of property plant and equipment has been provided in note 32(B).
(vi) During the current year, the Company has recognised the grants related to assets in accordance with Ind As 20 - “Government Grant” as reduction from carrying value of assets.
142-309 Financial Statements 45-141 Statutory Reports 14-44 Integrated Report Introduction 01-13

4 Goodwill and other Intangible assets

(` in crores)
Particulars Computer R & D Trademarks Distributor/ Non- Total Other Goodwill Intangibles Total
Software Software Dealer compete Intangible assets under Intangible
Network Fee Asset development Asset
At April 01, 2019 45.26 7.27 1,029.00 82.40 58.50 1,222.43 310.47 0.51 1,533.41
Additions 3.88 1.31 - - - 5.19 - 3.30 8.49
Disposals/adjustments (0.05) - - - - (0.05) - (0.45) (0.50)
At March 31, 2020 49.09 8.58 1,029.00 82.40 58.50 1,227.57 310.47 3.36 1,541.40
Additions 4.83 1.08 - - - 5.91 - 1.28 7.19
Recognition of grant related to (0.17) - - - - (0.17) - (0.17)
assets {Refer note 3 (vi)}
At March 31, 2021 53.72 9.66 1,029.00 82.40 58.50 1,233.28 310.47 3.65 1,547.40
Accumulated amortization
At April 01, 2019 23.99 3.12 - 19.60 15.86 62.57 - - 62.57
Charge for the year 5.71 1.17 - 10.30 8.36 25.54 - - 25.54
Disposals/adjustments (0.05) - - - - (0.05) - - (0.05)
At March 31, 2020 29.65 4.29 - 29.90 24.22 88.06 - - 88.06
Charge for the period 6.19 1.27 - 10.30 8.36 26.12 - - 26.12
At March 31, 2021 35.81 5.56 - 40.20 32.58 114.15 - - 114.15
Net carrying amount

At March 31, 2020 19.44 4.29 1,029.00 52.50 34.28 1,139.51 310.47 3.36 1,453.34
At March 31, 2021 17.91 4.10 1,029.00 42.20 25.92 1,119.13 310.47 3.65 1,433.25
Note:
Impairment testing of goodwill and intangible assets with indefinite lives
Goodwill of ` 310.47 crores and Trademark of ` 1029.00 crores acquired on acquisition of Lloyd business having indefinite useful lives as
assessed by the Management have been allocated to a separate single cash generating unit (CGU) i.e. LLOYD consumer which is also
an operating and reportable segment, for impairment testing. The Company has performed an annual impairment test to ascertain the
recoverable amount of CGU. The recoverable amount is determined based on value in use calculation. These calculations uses management
assumptions and pre tax cash flow projections based on financed budgets approved by management covering generally over a period of 5
years. Cash flow projection beyond 5 years time period are extrapolated using the estimated growth rates which is consistent with forecasts
included in industry reports specific to industry in which CGU operates. Further the management have factored the impact of COVID-19
on the cash flow projections used in assessment of recoverable amount of CGU. Management has determined following assumptions for
impairment testing of CGU as stated below.
March 31, 2021 Approach used in determining value

Assumption
Weighted average Cost of capital % (WACC) 13.50% It has been determined basis risk free rate of return adjusted for equity
before tax (discount rate) risk premium.
Long Term Growth Rate 5.00% This is the weighted average growth rate used to extrapolate cash
flows beyond the budget period. The rates are consistent with forecasts
included in industry reports.
Management determined budgeted gross margin based on past performance and its expectations of market development.
The weighted average growth rates used are consistent with the forecasts included in industry reports. The calculations
performed indicate that there is no impairment of CGU of the company. Management has performed a sensitivity analysis
with respect to changes in assumptions for assessment of value-in-use of CGU. Based on this analysis, management believes
that change in any of above assumption would not cause any material possible change in carrying value of unit’s CGU over
and above its recoverable amount.
178
Introduction 01-13
5 INVESTMENTS IN SUBSIDIARIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Investments in equity instruments of subsidiary companies
(unquoted)
(valued at cost, unless stated otherwise) {refer note 33 (1) (b)}
Havells Holdings Limited 13.65 13.65
17,37,362 (March 31, 2020 : 17,37,362) ordinary shares of 1 GBP
each fully paid up
Integrated Report
Less: Provision for impairment (12.47) 1.18 (12.47) 1.18
Havells Guangzhou International Limited
(100% contribution fully paid in capital) (March 31, 2020: 100% 0.45 0.45
contribution fully paid in capital)
Aggregate amount of unquoted investments 1.63 1.63
Aggregate amount of Impairment in value of investments 12.47 12.47
6 CONTRACT BALANCES
(` in crores)
As at As at
14-44
March 31, 2021 March 31, 2020
(A) Trade Receivables {refer note (a) below and note 11(B)} 563.63 248.88
563.63 248.88
(B) Contract Assets (Unsecured, considered good) {refer note (b)} 69.90 80.59
Statutory Reports
69.90 80.59
Non-current portion 49.79 60.58
Current portion 20.11 20.01
(C) Contract Liability {refer note (c) and note 23(v)} 14.11 20.06
14.11 20.06
Note:
(a) Trade Receivable represents the amount of consideration in exchange for goods or services transferred to the customers that is
unconditional.
45-141
(b) During the earlier years, the Company had entered in to an agreement with customer wherein the Company had identified multiple
performance obligations in contract as per Ind AS 115 “Revenue from contract with customers”. The Company’s right to receive
consideration is conditional upon satisfaction of all performance obligations. Accordingly, the Company has recognised contract asset
in respect of performance obligation satisfied during the year. Contract assets are in the nature of unbilled receivables, which arises
when Company satisfies a performance obligation but does not have an unconditional rights to consideration. Contract assets have Financial Statements
decreased in the current year on account of change in the time frame for a” right to consideration” become unconditional.
(c) The Company has entered into the agreements with customers for sales of goods and services. The Company has identified these
performance obligations and recognised the same as contract liabilities in respect of contracts, where the Company has obligation to
deliver the goods and perform specified services to a customer for which the Company has received consideration. There has been
no significant change in the contract liabilities.
7 NON-CURRENT FINANCIAL ASSETS

(` in crores)
As at As at
142-309
March 31, 2021 March 31, 2020

(A) TRADE RECEIVABLES (valued at amortised cost)
Unsecured {refer note 11(B)}
Trade receivables from contract with customers - considered good 3.32 7.96
3.32 7.96
(B) OTHER FINANCIAL ASSETS (valued at amortised cost)

Unsecured, considered good
Earnest money and Security Deposits 19.94 21.37
19.94 21.37
179

8 OTHER NON-CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Capital advances 14.81 10.16
Others
Prepaid expenses 6.17 5.84
Deposits with Statutory and Government authorities 33.64 34.67
54.62 50.67
9 NON CURRENT TAX ASSET (NET)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Income tax assets (net of provision for income tax) 23.56 16.53
23.56 16.53
10 INVENTORIES
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(Valued at lower of cost and net realisable value unless otherwise stated)
Raw materials and components 635.71 427.67
Work-in-progress 167.53 100.52
Finished goods 1,211.73 836.99
Traded goods 542.66 459.30
Stores and spares 25.40 21.02
Loose tools 0.86 2.02
Packing materials 21.09 15.41
Scrap materials 14.91 8.95
2,619.89 1,871.88
Notes:
(a) The above includes goods in transit as under:
Raw materials 110.61 81.64
Finished goods 136.37 44.86
(b) The stock of scrap materials have been taken at net realisable value.
(c) Inventories are hypothecated with the bankers against working capital limits. {refer note 32(C)}
(d) During the year ` Nil (March 31, 2020 : ` 16.69 Crores) was recognised as an expense for
inventories carried at the net realisable value.
180
Introduction 01-13
11 CURRENT FINANCIAL ASSETS

(A) CURRENT INVESTMENT (valued at amortised cost)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deposits account with financial institution with original maturity of more than three 154.77 -
months but less than twelve months {refer note (a)}
Deposits account with financial institution with original maturity of more than twelve 151.53
months {refer note (a)}
Integrated Report
306.30 -
Note:
(a) The deposits maintained by the Company with financial institution comprise of the time deposits and are made of varying periods
between one day to twelve months depending on the immediate cash requirements of the Company and earn interest at the respective
short-term deposit rates.
(B) TRADE RECEIVABLES (valued at amortised cost)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
14-44
Unsecured
Trade receivables from contract with customers - credit impaired 69.35 44.87
Trade receivables (gross) 632.98 293.75
Statutory Reports
Less : Impairment allowance for trade receivables 69.35 44.87
Trade receivables (net) 563.63 248.88

Non - current portion {refer note 7 (A)} 3.32 7.96
Note:
(a) Trade receivables are usually on trade terms based on credit worthiness of customers as per the terms of contract with customers.
(b) Neither trade nor other receivables are due from directors or other officers of the company either severally or jointly with any other
45-141
person, Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a
director or a member.
(c) The Company has availed Receivable Buyout facility from banks against which a sum of ` 167.99 crores (March 31, 2020 : ` 404.31
crores) has been utilised as on the date of Balance Sheet. The Company has assigned all its rights and privileges to the bank and there
is no recourse on the Company. Accordingly the amount of utilization has been reduced from trade receivables. Financial Statements
(d) The Company has arranged channel finance facility for its customers from banks against which a sum of ` 681.35 crores
(March 31, 2020: ` 605.99 crores) has been utilised as on the date of Balance Sheet and correspondingly, the trade receivables stand
reduced by the said amount as there is no recourse on the Company.
(C) CASH AND CASH EQUIVALENTS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
142-309

Deposits with a original maturity of less than three months {refer note (b)} 274.27 175.35
326.57 242.09
Note:
(a) There are no restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior period.
(b) Short-term deposits are made of varying periods between one date to three months depending on the immediate cash requirements
of the Company and earn interest at the respective short-term deposits rates.
181

(c) Changes in liabilities arising from financing activities:
(` in crores)
Long Term Borrowing Short Term Borrowing Lease Liability
March 31, March 31, March 31, March March 31, March 31,
2021 2020 2021 31, 2020 2021 2020
Opening balance 40.50 94.50 - - 121.61 -
Transition impact on account of adoption - - - - - 126.80
of Ind AS 116 {refer Note 33(3)}
Addition on account of new leases during - - - - 56.84 24.95
the year {refer Note 33(3)}
Deletion on account of termination of - - - - (18.06) (1.39)
leases during the year {refer Note 33(3)}
Cash inflow from borrowings 500.00 500.00 - - -
Cash inflow from issue of commercial - - 488.25 - - -
paper {refer note (a)} below
Cash outflows (49.50) (54.00) (988.25) - (27.19) (28.75)
Interest expense 25.04 5.17 22.04 - 9.68 10.92
Interest paid (23.84) (5.17) (22.04) - (9.68) (10.92)
Closing balance 492.20 40.50 - - 130.66 121.61
Non-current Borrowing {refer note 15 (A)} 393.65 - - - - -

Non-current lease liability {refer note 15 (B)} - - - - 101.51 89.74
Current maturity of long term borrowing 98.55 40.50 - - - -
{refer note 19 (C}
Current maturity of long term lease - - - - 29.15 31.87
liability {refer note 19 (A)}
Note:
(a) During the year the Company has issued unsecured Commercial Paper (CP) worth ` 500 crores at the issue price of ` 488.25 crores
having maturity date of March 26,2021. These have been fully repaid on due date including interest thereon.
(b) During the year, the Company has availed working capital loan of ` 200 crores from HSBC Bank for general business purpose for a
period of 90 days and the same was rolled over for further 90 days. The same has been repaid on due date including interest theron.
(c) During the year company has availed unsecured working capital loan of ` 300 crores from DBS bank which was repayable on demand
and the same has been repaid fully during the year including interest theron.
(d) For term loan refer note 15A.
(D) OTHER BANK BALANCES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deposits account with original maturity of more than three months but less than twelve 384.62 625.58
months {refer note (a)}
Deposits account with original maturity of more than twelve months {refer note (b)} 910.68 235.62
Unpaid dividend account {refer note (c)} 2.87 3.63
1298.17 864.83
Note:
(a) The deposits maintained by the Company with banks comprise of the time deposits, which may be withdrawn by the Company at any
point of time without prior notice and are made of varying periods between one day to twelve months depending on the immediate cash
requirements of the Company and earn interest at the respective short-term deposit rates.
(b) Fixed deposit with original maturity of more than twelve months but remaining maturity of less than twelve months have been disclosed
under other bank balances.
(c) The Company can utilise the balance towards settlement of unclaimed dividend.
182
Introduction 01-13
(E) OTHER FINANCIAL ASSETS (valued at amortised cost)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Earnest money and security deposits 3.91 4.53
Retention money 1.67 1.67
Contractual claims and other receivables (refer note below) 23.14 23.24
Consideration Receivable 17.27 -
45.99 29.44
Integrated Report
Note:
(a) Contractual claims and other receivables includes claims in accordance with contract with vendors.
(b) Consideration receivable includes the amount receivable upon liquidation of joint venture namely “Jiangsu Havells Sylvania Lighting
Co. Limited” as per terms agreed with joint venture partner.
12 OTHER CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Advances other than capital advances
14-44
Advances for materials and services 16.49 21.44
Others
Duty free licenses in hand 0.19 1.85
Statutory Reports
Insurance claim receivable - 0.74
Government grant receivable 23.02 71.18
Balance with Statutory/ Government authorities 46.28 60.62
109.23 164.60
Movement of Government grant receivable

Opening balance 71.18 41.87
Accrual of grant related to income (credited to statement of profit and loss account) 9.87 33.16
(refer note 23)
Accrual of grant related to assets 8.41 22.49
45-141
Grant related to asset realised (30.90) -
Grant related to income realised (35.54) (26.34)
Closing Balance 23.02 71.18
Note: Government grant receivable includes export incentives, Budgetary support for refund of Goods and Service Tax and investment subsidy.
13 ASSETS CLASSIFIED AS HELD FOR SALE
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Property, plant and equipment
Assets retired from active use {refer note (a) below} 0.58 0.95
Investment in joint venture

Jiangsu Havells Sylvania Lighting Co., Limited {refer note (b)} - 18.85
142-309
(50% contribution in paid in capital) 0.58 19.80

Note:
(a) The Company classified certain items of Property Plant and Equipment retired from active use and are held for sale recognised and
measured in accordance with Ind-AS 105 “Non Current Assets Held For Sale and Discontinued Operations” at lower of its carrying
amount and fair value less cost to sell. The Company expects to complete the sale by September 2020 (previous year :-September
2019) by selling it in the open market.
(b) In the earlier year, the Company and its joint venture partner in respect of their joint venture namely “Jiangsu Havells Sylvania Lighting Co.
Limited”, have applied for liquidation and formed a liquidation committee. Accordingly, the investment in joint venture was classified as asset
held for sale, recognised and measured in accordance with Ind-AS 105 “Non-Current Assets Held for Sale and Discontinued Operations”
at lower of its carrying amount and fair value less cost to sell. During the current year, final consideration amounting to USD 2.35 million has
been agreed between the co-venturers, accordingly the same has been classified to other financial assets {refer note 11(E)(b)}
183

14 EQUITY
(A) Share capital
a) Authorized Share Capital
(` in crores)
As at As at
March 31, 2021 March 31, 2020
1,032,000,000 equity shares of ` 1/- each (March 31, 2020: 1,032,000,000 103.20 103.20
equity shares of ` 1/- each)
5,50,000 preference shares of ` 10/- each (March 31, 2020: 5,50,000 0.55 0.55
preference shares of ` 10/- each)
103.75 103.75
b) Issued, subscribed and fully paid-up

(` in crores)
As at As at
March 31, 2021 March 31, 2020
626,013,006 equity shares of ` 1/- each 62.60 62.58
(March 31, 2020: 625,802,834 equity shares of ` 1/- each)
c) Reconciliation of the shares outstanding at the beginning and at the end of the period/ year
As at March 31, 2021 As at March 31, 2020
No. of shares ` in crores No. of shares ` in crores
At the beginning of the year 625,802,834 62.58 625,472,910 62.55
Add: Exercise of employee stock purchase plan - 210,172 0.02 329,924 0.03
proceeds received
626,013,006 62.60 625,802,834 62.58
d) Terms/rights attached to equity shares

The Company has only one class of issued share capital i.e. equity shares having a par value of ` 1/- per share (March
31, 2020 : ` 1/- per share). Each holder of equity shares is entitled to one vote per share. The Company declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity
shares held by the shareholders.
e) Details of shareholders holding more than 5% shares in the Company is set out below (representing legal and
beneficial ownership):
Name of shareholders
No. of shares % holding No. of shares % holding
Shri Anil Rai Gupta as Managing Trustee of ARG 77,425,200 12.37 77,425,200 12.37
Family Trust
Shri Surjit Kumar Gupta as Trustee of SKG Family 36,432,180 5.82 36,432,180 5.82
Trust
QRG Enterprises Limited 189,858,880 30.33 189,858,880 30.34
QRG Investments and Holdings Limited 68,741,660 10.98 68,741,660 10.98
Nalanda India Equity Fund Limited 33,044,930 5.28 33,044,930 5.28
f) Shares reserved for issue under Employee stock purchase plan

Information relating to Employee stock purchase plan, including details of option issued, exercised and lapsed during
the financial year and options outstanding as at end of the reporting period are set out in note 33 (7).
184
Introduction 01-13
(B) Other Equity

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Capital reserve 7.63 7.63
Securities premium 90.38 80.58
Share option outstanding account 0.64 0.64
General reserve 722.72 722.72
Retained earnings 4,280.48 3,430.66
Total other equity 5,101.85 4,242.23
Integrated Report
a) Capital reserve 7.63 7.63
b) Securities premium
Add: Exercise of Employee stock purchase plan - proceeds received 9.80 24.18
Closing balance 90.38 80.58
c) Stock options outstanding account

14-44
Add : Employee stock option expense 0.01 0.37
Less: Options lapsed during the year (0.01) -
Statutory Reports
d) General reserve 722.72 722.72
e) Retained earnings
Opening balance 3,430.66 3,342.63
Net profit for the year 1,039.64 733.03
Items of other comprehensive income recognised directly in retained earnings
Re-measurement gains / (losses) on defined benefit plans (net of tax) (2.02) (3.73)
Dividends
Final Dividend ` Nil per share for 2019-20, (` 4.5 per share for FY 2018-19) - (281.61)
Dividend distribution tax on final dividend - (57.89)
45-141
Interim Dividend of ` 3 per share for FY 2020-21 (` 4 per share for FY 2019-20) (187.80) (250.32)
Dividend distribution tax on interim dividend - (51.45)
Closing balance 4,280.48 3,430.66
(C) Nature and Purpose of Reserves
(a) Capital reserve
During amalgamation/ merger approved by honourable court, the excess of net assets taken over the consideration paid, if
any, is treated as capital reserve. This capital reserve has arisen as a result of scheme of amalgamation in the past periods.
(b) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
142-309
(c) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at
a specified percentage in accordance with applicable regulations adjusted by utilisation of reserve in accordance
with scheme of Amalgamation in earlier years. The purpose of these transfers was to ensure that if a dividend
distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the
total dividend distribution is less than the total distributable results for that year. Consequent to introduction of
Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only
in accordance with the specific requirements of Companies Act, 2013.
185

(d) Share options outstanding account

The share option outstanding account is used to recognise the grant date fair value of options issued to employees
under Employee stock purchase plan.
(e) Retained earnings

Retained Earnings are profits that the Company has earned till date less transfer to General Reserve, dividend or
other distribution or transaction with shareholders.
15 NON CURRENT FINANCIAL LIABILITIES

(A) Borrowings (valued at amortised cost)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Term loans from banks (secured)
Term loans {refer note (a) to (d) below} 492.20 40.50
492.20 40.50
Non-current portion 393.65 -
Current maturity of long term borrowing {refer note 19 (C)} 98.55 40.50
Notes:
(a) The Company has availed a secured loan of ` 108 Crores against sanctioned amount of ` 300 crores from CITI bank N.A. during financial
year 2017-18.The current outstanding and sanctioned amount against the loan is ` Nil (March 31, 2020; ` 40.50 Crores). The loan was
obtained for the purpose of reimbursement of prior capital expenditure incurred by the company during 12 months previous to sanction
date. The loan was having 15 months moratorium period and repayable in 8 quarterly instalments thereafter. This loan was secured by
way of first exclusive charge by way of a hypothecation over the Company’s all movable fixed assets both present and future situated at
SP 181 to 189 and 191 (A), Industrial Area, Phase II, Neemrana, Alwar, Rajasthan, India. The Company has complied with all covenants
throughout the reporting period. The said loan has been repaid on due date during the year including interest thereon.
(b) The company has availed secured loan of ` 250 crores (March 31, 2020: ` Nil) against the sanctioned term loan amount of ` 250 crores
(March 31, 2020: ` Nil) from CITI Bank N.A.The current outstanding amount against the loan is ` 250 Crores (March 31, 2020: ` Nil).The
loan was obtained for the purpose of fresh capital expenditure and reimbursement of prior capital expenditure incurred by the company
during the previous year. The term loan is repayable in 16 equated quarterly instalments commencing from 15th month from first
drawdown. This term loan is secured by way of first exclusive charge by way of a hypothecation over the Company’s all movable fixed
assets both present and future situated at (i) SP 181 to 189 and 191 (A), Industrial Area, Phase II, Neemrana, Alwar, Rajasthan, India
(ii) Unit-1 Village Dharampur, Sai Road, Baddi, Dist Solan,Himachal Pradesh,(iii) Unit-II Village Gulerwala, Dist Solan, Baddi, Himachal
Pradesh, (iv) Unit-I, Sector -10, Plot No 2A,BHEL Complex,Haridwar (v) Unit-II, Plot No 2A and 2D/1 Sector-10, Sidcul Industrial Area,
Haridwar, Uttarakhand.
(c) The company has availed secured loan of ` 250 Crores (March 31, 2020 : ` Nil) against the sanctioned amount of ` 350 crores (March
31, 2020: ` Nil) from HDFC Bank Limited. The current outstanding amount against the loan is ` 241 Crores (March 31, 2020: ` Nil).
The loan was obtained for the purpose of fresh capital expenditure and reimbursement of prior capital expenditure incurred by the
company during 12 months of first drawdown.. The term loan is repayable in 16 quarterly instalments over the period of 5 years as per
terms of agreement. This loan is secured by way of first exclusive charge by way of a hypothecation over the Company’s all movable
fixed assets, plant and machinery and all movable properties both present and future situated at (i) A-461/462,SP-215 and 204 & 204A,
Matsya Industrial Area, Alwar, Rajasthan and (ii) SP-1-133,General Zone, RIICO Industrial Area, Ghiloth.
(d) The Company has satisfied all debt covenants prescribed in terms of term loan agreements.
(B) Lease Liabilities

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Lease Liability {refer note 33 (3)} 101.51 89.74
101.51 89.74
186
Introduction 01-13
(C) Other Financial Liabilities (valued at amortised cost)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Employee stock purchase plan compensation payable 0.58 1.13
Long Term Employee Retention scheme 0.73 -
1.31 1.13
16 NON-CURRENT PROVISIONS
(` in crores)
Integrated Report
As at As at
March 31, 2021 March 31, 2020
Product warranties and E-waste {Refer note 20(a)} 58.43 35.57
58.43 35.57
17 INCOME TAXES
The major components of income tax expense for the years ended March 31, 2021 and March 31, 2020 are:
(a) Income tax expense in the statement of profit and loss comprises :
14-44
(` in crores)
year ended year ended
March 31, 2021 March 31, 2020
Current income tax charge 346.73 198.93
Statutory Reports
Adjustment in respect of current income tax of previous year (7.38) -
Total current income tax 339.35 198.93
Deferred Tax charge / (credit)
Relating to origination and reversal of temporary differences {refer note (ii)} 52.59 (30.23)
Income tax expense reported in the statement of profit or loss 391.94 168.70
(b) Other Comprehensive Income

(` in crores)
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year ended year ended
March 31, 2021 March 31, 2020
Current income tax related to items recognised in Other comprehensive income
during the year:
Current income tax on re-measurement loss on defined benefit plans 0.68 1.25 Financial Statements
Income tax related to items recognised in Other comprehensive income 0.68 1.25
during the year
(c) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate :
(` in crores)
March 31, 2021 March 31, 2020
Accounting Profit before tax 1,431.58 901.73
142-309
Applicable tax rate 25.168% 25.168%

Computed Tax Expense 360.30 226.95
Impact of adoption of new tax regime under section 115BAA on deferred tax - (72.35)
liability including reversal of MAT credit entitlement
Expense not allowed for tax purpose 8.68 14.19
Additional allowances for tax (0.05) (0.09)
Impact of amendment in income tax law pursuant to Finance Act, 2021 on 32.96 -
deferred tax liability {refer note (ii)}
Utilisation of previously unrecognised tax losses (9.95) -
Income tax charged to Statement of Profit and Loss at effective rate of 391.94 168.70
27.38% (March 31, 2020: 18.71%) {Refer Note (v) below}
187

(d) Deferred tax liabilities comprises :

(` in crores)
Balance Sheet Statement of profit and loss
As at As at Year Ended Year Ended
March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020
Accelerated Depreciation for Tax purposes 368.63 315.47 53.16 (55.23)
Right of Use as per Ind AS 116 30.93 29.45 1.48 29.45
Lease liability as per Ind AS 116 (32.88) (30.61) (2.27) (30.61)
Expenses allowable on payment basis (11.65) (17.58) 5.93 1.26
Allowance for doubtful debts (17.45) (11.29) (6.16) (2.37)
Unabsorbed Depreciation and carried forwarded - - - 4.82
tax losses
Other Items giving rise to temporary differences 1.53 1.08 0.45 (0.13)
339.11 286.52 52.59 (52.81)
MAT credit entitlement - - - 22.58
Deferred tax liabilities (net) 339.11 286.52 52.59 (30.23)
(e) Deferred tax liabilities (net)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Opening balance as per last balance sheet 286.52 316.75
Deferred tax charged/(credited) to profit and loss account during the year 52.59 (30.23)
Notes:
(i) The Company has unabsorbed capital loss of ` 342.05 crores as on March 31, 2021 (previous year 368.55 crores) out of which capital
loss of ` 219.75 crores will expire in financial year 2023-24 and capital loss of ` 122.30 crores will expire in financial year 2025-26, on
which no deferred tax asset has been created by the management due to lack of probability of future capital gain against which such
deferred tax assets can be realised. If the Company were able to recognise all unrecognised deferred tax assets, the profit after tax
would have increased by ` 78.26 crores (Previous year ` 85.86 crore).
(ii) The union budget presented on February 1, 2021 which got enacted on March 28, 2021, made an important change by disallowing
depreciation on goodwill for tax deduction retrospectively from April 01, 2020. Accordingly, the tax base of goodwill as on April 01,
2020 has become Nil. As a result of above amendment, there is difference between book base and tax base of goodwill resulting in
recognition of deferred tax liability by ` 32.96 crores with consequential impact on deferred tax expense.
(iii) During the previous year, the Company had opted for reduced tax rate as per section 115BAA of the Income Tax Act, 1961 (introduced by
the Taxation Laws (Amendment) Ordinance, 2019). Accordingly, the Company had recognised Provision for Income Tax for that year and
re-measured its Deferred tax liability basis the rate prescribed in the said section and unutilised MAT credit entitlement was written off.
(iv) During the previous year, the Company had paid Final dividend to its shareholders for the year ended March 31, 2019 and Interim
Dividend for the year ended March 31, 2020. This had resulted in payment of dividend distribution tax (DDT) amounting to ` 109.34
crores to the taxation authorities. The Company believes that DDT represents additional payment to taxation authority on behalf of the
shareholders. Hence DDT paid is charged to equity in previous year.
(v) Effective tax rate has been calculated on profit before tax.
18 OTHER NON CURRENT LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deferred capital goods credit {refer note 32(E)} - 17.71
- 17.71
188
Introduction 01-13
19 CURRENT FINANCIAL LIABILITIES

(A) Lease Liabilities
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current maturities of Lease liability {refer note 33 (3)} 29.15 31.87
29.15 31.87
(B) Trade Payables
Integrated Report
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Total outstanding dues of micro enterprise and small enterprises 188.78 106.28
Total outstanding dues of creditors other than micro enterprises and small 1,408.00 1,307.79
enterprises
1,596.78 1,414.07
Notes:
14-44
(i) Trade Payables include due to related parties ` 15.85 crores (March 31, 2020 : ` 4.95 crores) {refer note 33(6)(D)}
(ii) The amounts are unsecured and non interest-bearing and are usually on varying trade term.
(iii) For terms and conditions with related parties. {refer to note 33(6)}
(iv) Trade payables includes acceptances of ` 64.11 crores (March 31, 2020: ` 389.71 crores)
Statutory Reports
a) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act) for the year ended March 31, 2021 is given below. This information has been determined to the extent such parties have been
identified on the basis of information available with the Company.
i) Principal amount and interest due thereon remaining unpaid to any supplier covered under MSMED Act, 2006 as at the end of each
accounting year
Principal 188.78 106.28
Interest - -
ii) The amount of interest paid by the buyer in terms of section 16, of the MSMED Act,
2006 along with the amounts of the payment made to the supplier beyond the appointed day - -
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during each accounting year.
iii) The amount of interest due and payable for the period of delay in making payment - -
(which have been paid but beyond the appointed day during the year) but without
adding the interest specified under MSMED Act, 2006 Financial Statements
iv) The amount of interest accrued and remaining unpaid at the end of each accounting year. - -
v) The amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise for the purpose
of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006 - -
The total dues of Micro and Small Enterprises which were outstanding for more than stipulated period
are ` Nil (March 31, 2020 : ` Nil)

142-309
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Unpaid dividend {refer note (a)} 2.87 3.63
Other payables
Current Maturity of Long term loan {refer note 15A)} 98.55 40.50
Creditors for capital goods 31.25 39.41
189

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Other liabilities
Payable for services 152.76 111.69
Payable to banks against receivable buyout facilities (refer note (b)) 28.03 155.28
Sales incentives payable 293.05 113.29
Others {refer note (c)} 8.33 16.98
668.98 531.30
Notes:
a) Investor Education and Protection Fund is being credited by the amount of unclaimed dividend after seven years from the due date.
The Company has transferred ` 0.14 crores (March 31, 2020: ` 0.11 crore) out of unclaimed dividend to Investor Education and
Protection Fund of Central Government in accordance with the provisions of section 124 of the Companies Act,2013.
b) Monies collected on behalf of banks and remitted after the balance sheet date.
c) Other includes amount against E-waste liability {refer note 20(a)(ii)} and amount refundable to customers.
20 CURRENT PROVISIONS
i) Provision for employee benefits
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Gratuity {refer note no. 33(4)} 18.25 19.08
(A) 18.25 19.08
ii) Other provisions

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Product warranties and E-waste 226.37 176.94
Litigations 12.93 13.99
(B) 239.30 190.93
(A) + (B) 257.55 210.01
a) Provision for warranties and E-waste

(i) Warranties
A provision is recognized for expected warranty claims and after sales services on products sold during the last one to
seven years, based on past experience of the level of repairs and defective returns. It is expected that significant portion
of these costs will be incurred in the next financial year and all will be incurred within seven years after the reporting date.
Assumptions used to calculate the provisions for warranties are based on current sales levels and current information
available about defective returns based on one to seven years warranty period for all products sold and are consistent
with those in the prior years. The assumptions made in relation to the current year are consistent with those in the
prior year.
(ii) E-waste
A provision is recognised for probable e-waste liability based on “Extended Producer Responsibility” as furnished
by the Company to Central Pollution Control Board in accordance with E-Waste Management Rules, 2016 notified
by Government of India during the year. A provision for the expected costs of management of historical waste is
recognised when the costs can be reliably measured. These costs are recognised as ‘Other expenses’ in the statement
of profit and loss. As a part of acquisition of Lloyd business in earlier year, the seller company had agreed to ensure
compliance with “ extended producer responsibility” (EPR) in accordance with E- waste management rules, 2016 in
190
Introduction 01-13
respect of sales made by the seller company in respect of Lloyd consumer durable business prior to date of business
acquisition i.e. May 08, 2017. Further management has assessed liability under E-Waste management rules on year
to year basis and same has been accounted for accordingly. Towards this, the seller company has paid an amount of
` 8.09 crore (March 31, 2020: ` 9.46 crore).
(iii) The table below gives information about movement in Warranty and E-waste provisions:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
At the beginning of the year 212.51 208.74
Integrated Report
Addition during the year(refer note 31) 243.37 192.61
Utilized during the year (175.29) (192.39)
Unwinding of discount {refer note no. 29} 4.21 3.55
At the end of the year 284.80 212.51
b) Provision for litigations

Provision for litigation amounting to ` 12.93 Crores (March 31, 2020: `13.99 Crores) is created against demands raised
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in various ongoing litigations in ordinary course of business. Based on the facts of the case and legal precedents, the
management believes there would be a probable outflow of resources and accordingly, has created a provision in books
of account.
Statutory Reports
The table below gives information about movement in litigation provisions:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Addition during the year - 6.39
Utilized during the year (1.06) -
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Non-current portion - -
21 CURRENT TAX LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current tax liabilities (net of advance tax and tax deducted at source) 74.26 -
74.26 -
22 OTHER CURRENT LIABILITIES

142-309
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Advances from customers 25.17 38.43
Others
Goods and Service Tax Payable 40.07 29.79
Other statutory dues payable 55.69 36.85
120.93 105.07
191

23 REVENUE FROM OPERATIONS

(` in crores)
March 31, 2021 March 31, 2020
Revenue from contract with customers
Sale of products 10,300.19 9,309.83
Sales of services 53.16 40.69
Scrap sales 64.70 45.52
(A) 10,418.05 9,396.04
Other operating revenues
Export Incentive 9.87 7.95
Government assistance for refund of Goods and Service Tax - 25.21
{refer note (a) below}
(B) 9.87 33.16
Total revenue from operations (A) + (B) 10,427.92 9,429.20
Notes:
(a) Government assistance for refund of Goods and Service Tax represents benefits provided by the Government to the Company in
respect of its manufacturing units in the state of Assam, Himachal Pradesh and Uttarakhand in accordance with the ‘Scheme of
budgetary support under Goods and Service Tax Regime’ as notified on October 05, 2017 which were earlier eligible for excise duty
exemption. The exemption in respect of its manufacturing unit at Himachal Pradesh and Uttarakhand has expired on December 11,
2019 and January 17, 2020 respectively while manufacturing facility situated at Assam has been closed during the current year.
(i) Timing of revenue recognition

(` in crores)
March 31, 2021 March 31, 2020
Goods transferred at a point in time 10,360.58 9,351.42
Goods transferred over the time 4.31 3.93
Services transferred over the time 53.16 40.69
Total revenue from contract with customers 10,418.05 9,396.04
(ii) Disaggregation of revenue based on product or service

(` in crores)
March 31, 2021 March 31, 2020
Switchgears 1,454.51 1,321.92
Cables 3,178.88 2,993.30
Lighting and fixtures 1,084.29 1,013.94
Electrical consumer durables 2,375.28 1,990.97
Lloyd Consumer* 1,688.61 1,590.27
Others 636.48 485.64
* Includes revenue from procurement services and service-type warranties.
(iii) Revenue by location of customers

(` in crores)
March 31, 2021 March 31, 2020
India 10,057.53 9,079.01
Outside India 360.52 317.03
192
Introduction 01-13
(iv) Reconciliation of revenue recognised in statement of profit and loss with contracted price
(` in crores)
March 31, 2021 March 31, 2020
Revenue as per contracted price 10,493.13 9,462.71
Less: Cash discount (75.08) (66.67)
(v) Performance obligation
Integrated Report

Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred
to the customer, generally on delivery of the goods and payment is generally due as per the terms of contract with
customers.
Sales of services: The performance obligation in respect of maintenance services is satisfied over a period of time and
acceptance of the customer. In respect of these services, payment is generally due upon completion of maintenance
period based on time elapsed and acceptance of the customer. In certain non-standard contracts, where the Company
provides warranties in service of consumer durable goods, the same is accounted for as a separate performance
obligation and a portion of the transaction price is allocated based on its relative standalone prices. The performance
14-44
obligation for the warranty service is satisfied over a period of time based on time elapsed.
The transaction price allocated to remaining performance obligation (unsatisfied performance obligation) pertaining to
sales of services as at March 31, 2021 and expected time to recognise the same as revenue is as follows:-
Statutory Reports
(` in crores)
March 31, 2021 March 31, 2020
Within one year 9.54 15.74
More than one year 4.57 4.32
14.11 20.06
Note: The remaining performance obligation expected to be recognised in more than one year relates to amounts received from customer
against which performance obligation is to be satisfied over the period of one to seven years. All other remaining performance obligation are
45-141
expected to be recognised within one year. During the year ended March 31, 2021, revenue recognised from amount included in contract
liability at the beginning of year is ` 15.22 crores (March 31, 2020: ` 1.32 crores). Revenue recognised from performance obligation satisfied
in the previous period is ` Nil (March 31, 2020: ` Nil)
24 OTHER INCOME
(` in crores)
March 31, 2021 March 31, 2020
Interest received on financial assets carried at amortised cost:
Deposits with banks 83.89 69.58
Investment 15.53 -
Others 8.10 7.02
142-309
Other non-operating income

Exchange fluctuations (net) 24.05 19.53
Liabilities no longer required written back 4.49 4.33
Gain on disposal of property, plant and equipment (net) 40.39 -
Lease rent concession {refer note 33(3)} 2.54 -
Miscellaneous income 8.83 11.52
187.82 111.98
193

25 COST OF RAW MATERIALS AND COMPONENTS CONSUMED

(` in crores)
March 31, 2021 March 31, 2020
Copper 1,830.22 1,370.66
Aluminium 514.16 532.21
General plastic and Engineering Plastic 238.98 220.45
Paints and chemicals 311.46 292.04
Steel 166.56 162.24
Other material 2,097.62 1,618.34
5,390.51 4,389.58
26 PURCHASE OF TRADED GOODS

(` in crores)
March 31, 2021 March 31, 2020
Switchgears 87.82 63.15
Lighting and fixtures 252.37 165.24
Electrical consumer durables 357.97 353.64
Lloyd Consumer 695.03 528.72
Cables 0.73 0.55
Others 221.54 161.52
1,615.46 1,272.82
27 CHANGE IN INVENTORIES OF FINISHED GOODS, TRADED GOODS AND WORK-IN-PROGRESS ETC.

(` in crores)
As at As at (Increase)/
March 31, 2021 March 31, 2020 Decrease
Inventories at the end of the year
Finished goods 1,211.73 836.99 (374.74)
Traded goods 542.66 459.30 (83.36)
Work in progress 167.53 100.52 (67.01)
Scrap materials 14.91 8.95 (5.96)
1,936.83 1,405.76 (531.07)
(` in crores)
Inventories at the beginning of the year
Finished goods 836.99 623.31 (213.68)
Traded goods 459.30 851.66 392.36
Work in progress 100.52 98.77 (1.75)
1,405.76 1,578.50 172.74
194
Introduction 01-13
28 EMPLOYEE BENEFITS EXPENSES

(` in crores)
March 31, 2021 March 31, 2020
Salaries, wages, bonus, commission and other benefits 819.68 818.89
Contribution towards PF, Family Pension and ESI 36.17 37.06
Employee stock purchase plan expense {refer note no. 33(7)} 7.59 17.06
Gratuity expense {refer note no. 33(4)} 15.55 14.11
Staff welfare expenses 6.34 12.46
Integrated Report
885.33 899.58
29 FINANCE COSTS
(` in crores)
March 31, 2021 March 31, 2020
Interest expense 47.08 5.17
Interest on income tax 11.21 -
Interest on lease liability {refer note no. 33(3)} 9.68 10.92
14-44
Miscellaneous financial expenses 0.46 0.08
Total interest expense 68.43 16.17
Unwinding of discount on long term provisions {refer note no. 20(a)(iii)} 4.21 3.55
Total Finance cost 72.64 19.72
Statutory Reports
30 DEPRECIATION AND AMORTISATION EXPENSES
(` in crores)
March 31, 2021 March 31, 2020
Depreciation of property, plant and equipment {refer note 3} 187.82 153.68
Amortization of intangible assets {refer note 4} 26.12 25.54
Depreciation of Right of use assets (refer note 3) 34.92 38.69
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248.86 217.91
31 OTHER EXPENSES
(` in crores) Financial Statements

March 31, 2021 March 31, 2020
Consumption of stores and spares 48.74 45.21
Power and fuel 84.32 92.44
Job work and service charges 246.91 203.09
Rent 31.22 37.49
Repairs and maintenance:
142-309
Plant and machinery 9.55 10.18

Buildings 2.85 2.31
Others 45.38 50.77
Rates and taxes 4.54 1.55
Insurance 20.86 17.66
Trade mark fee and royalty 0.21 0.15
Travelling and conveyance 40.98 83.78
195

(` in crores)
March 31, 2021 March 31, 2020
Communication expenses 6.83 10.27
Legal and professional charges 20.52 19.81
Payment to Auditors
As Auditors:
Audit fee 1.35 1.35
Tax audit fee 0.05 0.05
Certification fee 0.04 0.05
Reimbursement of expenses 0.01 0.09
Contribution towards Corporate Social Responsibility (CSR) {refer note no. 33(8)} 20.97 20.32
Directors sitting fees 0.45 0.35
Selling and distribution expense 361.54 343.04
Advertisement and sales promotion 132.55 320.94
Secondary sales promotion expense 33.88 48.56
Commission on sales 73.99 73.22
Product warranties and after sales services (net of reversals) 243.37 192.61
Bank Charges 17.33 31.48
Loss on sale/ discard of property, plant and equipment (net) - 6.73
Impairment allowance for trade receivables - credit impaired 24.48 18.23
Impairment of Investment in subsidiary company /Joint Venture 1.10 0.03
Miscellaneous expenses 26.98 34.52
1,502.43 1,667.10
32 COMMITMENTS AND CONTINGENCIES

A Contingent liabilities (to the extent not provided for)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
a Claims / Suits filed against the Company not acknowledged as debts 6.86 6.47
(Refer point (i))
b Disputed tax liabilities in respect of pending litigations before appellate 64.16 78.13
authorities {Amount deposited under protest ` 31.86 crores (March 31,
2020: ` 30.96 crores, included in “deposit with statutory and government
authorities” in note no. 8) {refer point (ii)}
Notes:
i) Claims / suits filed against the Company not acknowledged as debts which represents various legal cases filed against the company.
The Company has disclaimed the liability and defending the action. The Company has been advised by its legal counsel that its
position is likely to be upheld in the litigation process and accordingly no provision for any liability has been made in the financial
statement.
196
Introduction 01-13
ii) The various disputed tax litigations are as under :
(` in crores)
Sl. Description {refer note below} Period to which Disputed Amount Period to which Disputed Amount
relates As at relates As at
March 31, 2021 March 31, 2020
a) Excise / Customs / Service Tax
Demands raised by Excise and 2007-08 to 2009- 0.40 2007-08 to 2009-10 0.39
Custom department. 10, 2015-16 and and 2019-20
2019-20
Integrated Report
b) Income Tax
Disallowances / additions 2005-06, 2009-10 42.21 2003-04, 2005-06 56.21
made by the income tax to to
department. 2013-14 2013-14
c) Goods and Service Tax

Demands raised by GST 2017-18 1.26 2017-18 1.26
Department and and
2019-20 2019-20
14-44
d) Sales Tax / VAT
Demands raised by Sales tax / 2005-06 20.14 2005-06 20.12
VAT department. to
Statutory Reports
to
2016-17 2015-16
e) Others
Demand of local area 2001-02 0.12 2001-02 0.12
development tax by the
concerned authorities.
Demand of octroi along 2010-11 0.03 2010-11 0.03
with penalty in the state of
Maharashtra by the concerned
45-141
authorities.
64.16 78.13
Note:
The Company is contesting these demands and the management, believe that its position will likely to be upheld in the appellate process
and accordingly no provision has been accrued in the financial statements for these tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse effect on the Company’s financial position and results of operations.
Based on favourable decisions in similar cases, the Company does not expect any liability against these matters in accordance with
principles of Ind AS -12 ‘Income taxes’ read with Ind AS -37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and hence no provision
has been considered in the books of accounts except for provision created in respect of few years {refer note 20 (ii)}. Besides the above,
show cause notices from various departments received by the Company have not been treated as contingent liabilities, since the Company
has adequately represented to the concerned departments and does not expect any liability on this account.
B Commitments
142-309
(` in crores)
As at As at
March 31, 2021 March 31, 2020
a) Estimated amount of capital contracts remaining to be executed and not 112.04 103.16
provided for (net of advances)
b) Corporate Social Responsibility commitment - 28.16
112.04 131.32
197

C Undrawn committed borrowing facility

(a) The Company has availed fund based and non fund based working capital limits amounting to ` 235.00 crores
(March 31, 2020 : ` 235.00 crores) from banks under consortium of Canara Bank, IDBI Bank Limited, Standard
Chartered Bank, Axis Bank, ICICI Bank Limited, Yes Bank Limited and The Hong Kong and Shanghai Banking
Corporation Limited. An amount of ` 217.12 crores remain undrawn as at March 31, 2021 (March 31, 2020 :
` 212.28 crores). Further The limit availed is secured by way of:
i) Pari-passu first charge with consortium banks by way of hypothecation on entire paid stocks consisting of raw
material, work in progress, finished goods kept at Company’s godown, factories and book debts along with
receivables of the Company, both present and future.
ii) Pari-passu first charge with consortium banks by way of equitable mortgage of land and building at 14/3,
Mathura Road, Faridabad.
iii) Pari-passu second charge with consortium banks by way of hypothecation of plant and machinery, generators,
furniture and fixtures, electric fans and installations on which 1st charge is held with term lenders.
(b) The Company has availed a secured loan of ` 108 Crores against sanctioned amount of ` 300 crores from CITI
bank N.A. during financial year 2017-18.The current outstanding and sanctioned amount against the loan is ` Nil
(March 31, 2020; ` 40.50 Crores). The said loan has been repaid on due date during the year including interest
thereon. The loan is closed during the year and an amount of ` Nil is undrawn as at March 31, 2021 (March 31,
2020: ` 192 crores).{refer note 15 (A) (a)}
(c) The company has availed secured loan of ` 250 Crores (March 31, 2020 : ` Nil) against the sanctioned amount of
` 350 crores (March 31, 2020: ` Nil) from HDFC Bank Limited. The current outstanding amount against the loan is
` 241 Crores (March 31, 2020: ` Nil).An amount of ` 100 crores is undrawn as at March 31, 2021. {refer note
15(A)(c)}
D Other Litigations
The Company has some sales tax and other tax related litigation of ` 12.93 crores (March 31, 2020: ` 13.99 crores)
against which liability has been assessed as probable and adequate provisions have been made with respect to the
same.
E Land situated at Ghiloth District, General Zone Industrial Area RIICO in the state of Rajasthan was allotted to the
Company for a consideration of ` 71.21 crores which was to be adjusted by rebate of ` 17.71 crores subject of fulfilment
of certain condition attached to grant. As at March 31, 2021, the Company is reasonably certain that it will fulfil the
condition attached to the grant, accordingly grant related to assets has been recognised by the Company by deducting
the same from carrying amount of related asset as per Ind AS 20 - “Government Grant”
F The Company has outstanding obligation amounting to ` 0.80 crores (March 31, 2020: ` 1.65 crores) in respect of
bonds given to central tax department against import of goods at concessional rate of basic custom duty. The Company
expects to fulfil the obligation in due course of time.
G The Company has export obligation of ` 10.18 crore (March 31, 2020: ` Nil) on account of import duty exemption of
` 0.50 crores (March 31, 2020: ` Nil) on capital goods under the Export Promotion Capital Goods (EPCG) scheme laid
down by the Government of India. The Company expects to fulfil the obligation in due course of time.
198
Introduction 01-13
33 OTHER NOTES ON ACCOUNTS

1 Investment in subsidiaries and joint ventures
(a) These financial statement are separate financial statements prepared in accordance with Ind AS-27 “ Separate Financial
Statements”.
(b) The Company ‘s investments in subsidiaries are as under:
Name of the subsidiaries Country of Portion of Portion of Method used to
incorporation ownership ownership account for the
interest as at interest as at investment
March 31, 2021 March 31, 2020
Integrated Report
Havells Holdings Limited Isle of Man 100% 100% At cost
Havells Guangzhou International Limited China 100% 100% At cost
(c) The Company’s investment in Joint venture is as under:

Name of the Joint venture Country of Portion of Portion of Method used to
incorporation ownership ownership account for the
interest as at interest as at investment
March 31, 2021 March 31, 2020
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Jiangsu Havells Sylvania Lighting Co. China 50% 50% At cost
Limited {refer note 11(E)(b)}
2 During the year, the Company has capitalised the following pre-operative expenses directly relatable to the cost of
Statutory Reports
property, plant and equipment, being expenses related to projects and development of Dies and Fixtures. Consequently,
expenses disclosed under the respective notes are net of amounts capitalised by the Company.
(` in crores)
Particulars Year ended Year ended
March 31, 2021 March 31, 2020
Cost of material consumed 9.48 8.48
Employee benefits expense 2.27 5.12
Other expenses 0.74 2.42
12.49 16.02
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3 Leases
(i) The Company’s lease asset primarily consist of leases for land and buildings for branch offices and warehouses having
the various lease terms. The Company also has certain leases of with lease terms of 12 months or less. The Group Financial Statements
applies the ‘short-term lease’ recognition exemptions for these leases.
(ii) Following is carrying value of right of use assets and the movements thereof :
(` in crores)
Particulars Right of Use Asset Total
Leasehold Land Leasehold
Building
Balance as at April 01, 2019 (Restated) 176.98 129.59 306.57
Additions during the year 40.82 24.95 65.77
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Deletion during the year - (0.98) (0.98)

Depreciation of Right of use assets (refer note 30) (2.16) (36.53) (38.69)
Balance as at March 31, 2020 215.64 117.03 332.67
Recognition of grant related to assets (17.71) - (17.71)
Deletion during the year (10.50) (18.62) (29.12)
Depreciation on Right of use assets (refer note 30) (2.44) (32.48) (34.92)
199

(iii) The following is the carrying value of lease liability and movement thereof :
(` in crores)
Particulars Amount
Balance as at April 1, 2019 (Restated) 126.80
Additions during the year 24.95
Finance cost accrued during the year 10.92
Deletion during the year (1.39)
Payment of lease liabilities including interest (39.67)
Balance as at March 31, 2020 121.61
Lease rent concession (2.54)
Current maturities of Lease liability {refer note 19 (A)} 29.15

Non-Current Lease Liability {refer note 15 (B)} 101.51
130.66
(iv) The maturity analysis of lease liabilities are disclosed in Note 33(10).
(v) The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2019 is 8.5%
(vi) Amounts recognised in the statement of profit and loss during the year
(` in crores)
March 31, 2021 March 31, 2020
Depreciation charge of right-of-use assets - leasehold building 32.48 36.53
Depreciation charge of right-of-use assets - leasehold land 2.44 2.16
Finance cost accrued during the year (included in finance cost) (refer note 29) 9.68 10.92
Expense related to short term leases (included in other expense) (refer note 31) 31.22 37.49
(vii) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient
to meet the obligations related to lease liabilities as and when they fall due.
(viii) During the current year, the Company has received the Covid-19-related rent concessions for lessees amounting to
` 2.54 crores and on the basis of practical expedient as per Ind AS 116 “Leases”, the same is not considered to be lease
modification, hence the income towards rent concession is recognised in “Other Income” in the statement of profit and
loss account.
(ix) The Company has applied a single discount rate to a portfolio of leases of a similar assets in similar economic environment
with similar end date.
(x) Non-cash investing activities during the year:
(` in crores)
March 31, 2021 March 31, 2020
Acquisition of right of use assets 56.96 24.95
Recognition of grant related to assets (17.71) -
Disposals of right of use assets (18.62) (0.98)
200
Introduction 01-13
4 Gratuity and other post-employment benefit plans

isclosures pursuant to Ind AS - 19 “Employee Benefits” (notified under the section 133 of the Companies Act 2013 (the Act)
D
read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provision
of the Act) are given below :
Contribution to Defined Contribution Plan, recognised as expense for the year is as under:
(` in crores)
March 31, 2021 March 31, 2020
Integrated Report
Employer's Contribution towards Provident Fund (PF) and NPS 35.80 36.55
Employer's Contribution towards Employee State Insurance (ESI) 0.37 0.51
36.17 37.06
Defined Benefit Plan

The employees’ Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust which maintains its
investments with Bajaj Allianz Life Insurance Co.Ltd. The gratuity plan is governed by the Payment of Gratuity Act, 1972.
Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15
days of last drawn basic salary for each completed year of service. The present value of obligation is determined based
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on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The following tables summaries the components of net benefit expense recognised in the statement of profit or loss, the
Statutory Reports
funded status and amounts recognised in the balance sheet for the respective plans:
a) Reconciliation of opening and closing balances of Defined Benefit obligation

(` in crores)
March 31, 2021 March 31, 2020
Present value of Defined Benefit obligation at the beginning of the year 108.26 91.09
Opening obligation transferred to group companies - (0.08)
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Interest Expense 7.15 6.65
Current Service Cost 14.90 13.36
Benefit paid (4.75) (8.03)
Remeasurement of (Gain)/loss recognised in other comprehensive income
Actuarial changes arising from changes in financial assumptions 4.04 4.66

Actuarial changes arising from changes in experience adjustments (0.38) 0.61
Present value of Defined Benefit obligation at year end 129.22 108.26
b) Reconciliation of opening and closing balances of fair value of plan assets

(` in crores)
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March 31, 2021 March 31, 2020

Fair value of plan assets at beginning of the year 89.18 71.63
Expected return on plan assets 6.50 5.90
Employer contribution 19.08 19.39
Remeasurement of Gain/(loss) in other comprehensive income
Return on plan assets excluding interest income 0.96 0.29
Benefits paid (4.75) (8.03)
Fair value of plan assets at year end 110.97 89.18
201

c) Net defined benefit asset/ (liability) recognised in the balance sheet

(` in crores)
March 31, 2021 March 31, 2020
Fair value of plan assets 110.97 89.18
Present value of defined benefit obligation (129.22) (108.26)
Amount recognised in Balance Sheet- Asset / (Liability) (18.25) (19.08)
Current portion {refer note 20(i)} (18.25) (19.08)

d) Net defined benefit expense (recognised in the Statement of profit and loss for the year)
(` in crores)
March 31, 2021 March 31, 2020
Current service cost 14.90 13.36
Interest cost (net) 0.65 0.75
Net defined benefit expense debited to statement of profit and loss 15.55 14.11
e) Remeasurement (gain)/ loss recognised in other comprehensive income

(` in crores)
March 31, 2021 March 31, 2020
Return on Plan assets excluding amounts included in net interest expense (0.96) (0.29)
Recognised in other comprehensive income 2.70 4.98
f) Broad categories of plan assets as a percentage of total assets

(` in crores)
March 31, 2021 March 31, 2020
Insurer managed funds 100% 100%
g) Principal assumptions used in determining defined benefit obligation

March 31, 2021 March 31, 2020
Mortality Table (LIC) 2012-14 2012-14
(Ultimate) (Ultimate)
Discount rate (per annum) 6.76% 6.75%
Salary Escalation 9.00% 8.50%
Attrition Rate 7.00% 7.00%
202
Introduction 01-13
h) Quantitative sensitivity analysis for significant assumptions is as below:

(` in crores)
March 31, 2021 March 31, 2020
Increase / (decrease) on present value of defined benefits obligations at the
end of the year
Discount rate
Increase by 0.50% (4.37) (3.71)
Decrease by 0.50% 5.03 4.25
Integrated Report
Salary increase
Increase by 0.50% 4.90 4.17
Decrease by 0.50% (4.36) (3.72)
Attrition rate
Increase by 0.50% (0.70) (0.49)
Decrease by 0.50% 0.80 0.55
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i) Maturity profile of defined benefit obligation
(` in crores)
March 31, 2021 March 31, 2020
Statutory Reports
Within the next 12 months (next annual reporting period) 8.73 7.42
Between 2 and 5 years 57.65 50.45
More than 5 years 173.52 143.27
Total expected payments 239.90 201.14
The average duration of the defined benefit plan obligation at the end of the reporting period is 21.98 years (March 31,
j)
2020: 22.77 years)
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k) The plan assets are maintained with Bajaj Allianz Life Insurance Co.Ltd.
l) The Company expects to contribute ` 18.25 crores (March 31, 2020 : ` 19.08 crores) to the plan during the next financial
year. Financial Statements
m) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The above
information is as certified by the Actuary.
n) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligations.
o) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in an assumptions occurring at the end of the reporting period
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while holding all other assumption constraint. In practice it is unlikely to occur and change in some of the assumption
may be correlated. 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.
p) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.
203

5 Segment Reporting
The segment reporting of the Company has been prepared in accordance with Ind AS-108, “Operating Segment”
(specified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards)
Rule 2015 (as amended from time to time) and other relevant provision of the Act). For management purposes, the
Company is organized into business units based on its products and services and has six reportable segments as
follows:
a) Operating Segments
Switchgears : Domestic and Industrial switchgears, electrical wiring accessories and capacitors.
Cables : Domestic cables and Industrial underground cables.
Lighting and Fixtures : Energy Saving Lamps (LED, Fixtures) and luminaries.
Electrical Consumer Durables : Fans, Water Heaters, Coolers, and Domestic Appliances
Lloyd Consumer : Air Conditioner, Television, Refrigerator and Washing Machine
Others : Industrial motors, Pump, Water purifier, Solar, Personal Grooming
b) Identification of Segments:
The Board of Directors 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 have been
identified on the basis of the nature of product / services and have been identified as per the quantitative criteria
specified in the Ind AS.
c) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the
segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable
basis have been disclosed as “unallocable”.
d) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related
assets, borrowings and other assets and liabilities that can not be allocated to a segment on reasonable basis have
been disclosed as “unallocable”.
e) There is no transfer of products between operating segments.
f) There are no customers having revenue exceeding 10% of total revenues
g) No operating segments have been aggregated to form the above reportable operating segments.
Summary of Segmental Information

A Revenue from operations
(` in crores)
March 31, 2021 March 31, 2020
Segment Revenue (Sales and other operating revenue)
Switchgears 1,460.88 1,339.38
Cables 3,180.17 2,994.19
Lloyd Consumer 1,688.75 1,590.27
Others 636.53 485.67
10,427.92 9,429.20
Inter Segment Sale - -
Total segment revenue 10,427.92 9,429.20
204
Introduction 01-13
B Results
(` in crores)
March 31, 2021 March 31, 2020
Segment results
Cables 403.78 332.12
Integrated Report
Lloyd Consumer 74.12 (40.12)
Others 30.98 (25.01)
Segment operating profit 1,521.34 1,024.61
Reconciliation of segment operating profit to operating profit
Unallocated:
Other unallocable expenses net off 204.94 215.14
Other unallocable income (187.82) (111.98)
Operating Profit 1,504.22 921.45
Finance Costs {refer note 29} (72.64) (19.72)
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Income tax expense {refer note 17} (391.94) (168.70)
Profit after tax 1,039.64 733.03
Statutory Reports
C Reconciliations to amounts reflected in the financial statements
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Segment Assets
Cables 1,085.62 909.28
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Others 259.74 202.99
Segment operating assets 6,424.44 5,400.97
Reconciliation of segment operating assets to total assets Financial Statements
Cash and bank balance {refer note 11(C) and (D)} 1,624.74 1,106.92
Fixed deposits with financial institutions {refer note 11(A)} 306.30 -
Investment in Subsidiaries{refer note 5} 1.63 1.63
Other unallocable assets 463.11 538.34
Total assets 8,820.22 7,047.86
Segment Liabilities
Cables 377.63 521.89
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Others 122.50 101.85
Segment operating liabilities 2,322.94 1,902.11
Reconciliation of segment operating liabilities to total liabilities
Borrowings {refer note 15(A) and 19(C)} 492.20 40.50
Lease Liabilities{refer note 15(B) and 19 (A)} 130.66 121.61
Deferred tax liability {refer note 17(d)} 339.11 286.52
Current tax liabilities (net){refer note 21} 74.26 -
205

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Other unallocable liabilities 296.60 392.31
Other non-current assets
Cables 2.46 3.48
Others 0.43 1.19
17.68 19.35
Unallocable assets 36.94 31.32
54.62 50.67
(` in crores)
March 31, 2021 March 31, 2020
Capital Expenditure
Cables 26.98 104.72
Others 4.22 4.45
185.98 332.62
Unallocable capital expenditure 24.98 38.68
210.96 371.30
Depreciation and Amortization Expenses
Cables 65.36 61.15
Others 12.20 11.26
248.86 217.91
Non-cash expenses (net) other than depreciation
Cables (0.58) 7.27
Others 0.24 0.35
25.92 25.78
Impairment allowance on other assets 1.10 0.03
27.02 25.81
Note: Non cash expenses other than depreciation includes loss on disposal of property, plant and equipment, bad debts and
Impairment allowance for trade receivables and other assets considered doubtful
206
Introduction 01-13
(` in crores)
March 31, 2021 March 31, 2020
Segment Revenue by location of customers
The following is the distribution of Company's revenue by geographical market,
regardless of where the goods were produced.
Revenue-Domestic Market 10,067.40 9,112.17
Revenue-Overseas Market 360.52 317.03
10,427.92 9,429.20
Integrated Report
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Geographical Segment assets
Within India 8,744.87 6,966.54
8,820.22 7,047.86
Geographical Non-current assets
Within India 3,427.19 3,473.64
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3,434.83 3,486.22
Note: Non Current assets for this purpose excludes investment in subsidiaries, Contract assets, non current financial assets and non current
tax assets
Statutory Reports
(` in crores)
March 31, 2021 March 31, 2020
Geographical Capital Expenditure
Within India 210.95 371.30
Outside India 0.01 -
210.96 371.30
Notes:
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(i) Finance income and costs on financial assets are not allocated to individual segments as the underlying instruments are managed on
a group basis.
(ii) Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed
on a group basis.
(iii) Capital expenditure consists of additions of property, plant and equipment, Capital work in progress and intangible assets.
(iv) The Company has reviewed its reportable segments effective April 01, 2020. The product categories which are not strictly subscribing
to a specific product segment has been carved out into a new product segment ‘Others’ consisting of Motor, Pump, Solar, Personal
Grooming and Water Purifier businesses. The comparative figures for earlier periods have been accordingly reclassified.
6 Related party transactions

The related parties as per the terms of Ind AS-24,”Related Party Disclosures”, (under the section 133 of the Companies
Act 2013 (the Act) read with Companies (Indian Accounting Standards) Rules 2015 (as amended from time to time), as
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disclosed below:-
(A) Names of related parties and description of relationship :

(i) Related party where control exists
Subsidiary Companies Relationship
1 Havells Holdings Limited Wholly Owned Subsidiary (WOS)
2 Havells Guangzhou International Limited Wholly Owned Subsidiary (WOS)
3 Havells Exim Limited Closed and ceased to be subsidiary with effect from
September 13, 2019
207

Step Down Subsidiary Companies

1 Havells International Limited Closed and ceased to be subsidiary w.e.f July 22, 2019
2 Havells Sylvania Iluminacion (Chile) Ltda Closed and ceased to be subsidiary w.e.f November 28, 2019
(ii) Joint Venture

Jiangsu Havells Sylvania Lighting Co. Limited 50% ownership interest held by Company.(Under
Liquidation)
(B) Names of other related parties with whom transactions have taken place during the year :
(i) Enterprises in which directors are interested (iii) Key Management Personnel
QRG Enterprises Limited Shri Anil Rai Gupta, Chairman and Managing Director
QRG Foundation Shri Rajesh Kumar Gupta, Director (Finance) and Group CFO
Guptajee & Company Shri Ameet Kumar Gupta, Wholetime Director
QRG Central Hospital and Research Centre Ltd Shri Siddhartha Pandit, Wholetime Director (appointed
(till 12th November,2020) w.e.f May 29,2019)
QRG Medicare limited Shri Sanjay Kumar Gupta, Company Secretary
The Vivekananda Ashrama
Aartas Care Private Limited
(ii) Employee benefit trust for the benefited employees (iv) Other Related Parties
Havells India Limited Employees Gratuity Trust (a) Non Executive Directors
Shri Vijay Kumar Chopra (retired w.e.f April 1, 2020)
Dr. Adarsh Kishore (retired w.e.f April 1, 2020)
Shri Surender Kumar Tuteja (retired w.e.f April 1,2020)
Smt. Pratima Ram
Shri Vellayan Subbiah (resigned on October 22, 2020)
Shri Puneet Bhatia
Shri T V Mohandas Pai
Shri Surjit Kumar Gupta
Shri Jalaj Ashwin Dani
Shri U K Sinha
Shri B P Rao (appointed w.e.f. May 12, 2020)
Shri S S Mundra (appointed w.e.f. May 12, 2020)
Shri Vivek Mehra (appointed w.e.f. May 12, 2020)
Smt Namrata Kaul (appointed w.e.f. January 20, 2021)
Shri Ashish Bharat Ram (appointed w.e.f. May 20, 2021)
(b) Others
Shri Rakesh Mehrotra
- Associate Director (appointed w.e.f Jun 01,2020)
- HKHR Ventures LLP (Partner)
Shri Yogesh Kumar Gupta
- Associate Director (appointed w.e.f Jun 01,2020)
- Eastern Distributors (Partner)
- Gupta Enterprise (Partner)
- YKG Enterprises (Partner)
- O.P. Gupta & Co.(Partner)
- OPG Travels (Partner)
208
Introduction 01-13
(C) Transactions during the year

(i) Commission paid on purchase
(` in crores)
March 31, 2021 March 31, 2020
Subsidiaries / Step down Subsidiaries
Havells Guangzhou International Ltd. 9.21 7.75
9.21 7.75
Integrated Report
(ii) Sale of products (refer note (c) below)
(` in crores)
March 31, 2021 March 31, 2020
Enterprises in which directors are interested
QRG Central Hospital and Research Centre Ltd - 0.01
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Aartas Care Private Limited 0.02
QRG Medicare limited 0.04 0.23
Other Related Parties
Statutory Reports
OP Gupta and Company 1.78 -
1.84 0.24
(iii) Sale Return of products (refer note (c) below)

(` in crores)
March 31, 2021 March 31, 2020
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Enterprises in which directors are interested 0.14 -
QRG Medicare limited 0.14 -
(iv) Commission on sales (refer note (c) below)
(` in crores)
March 31, 2021 March 31, 2020
Guptajee and Company 11.84 13.12
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Eastern Distributors 12.70 -

Gupta Enterprise 1.51 -
YKG Enterprises 3.40 -
HKHR Ventures LLP 26.82 -
56.27 13.12
209

(v) Rent / Usage Charges Paid

(` in crores)
March 31, 2021 March 31, 2020
QRG Enterprises Limited 21.41 22.83
(vi) Reimbursement of expenses paid

(` in crores)
March 31, 2021 March 31, 2020
OPG Travels 0.17 -
0.18 -
(vii) CSR Contribution

(` in crores)
March 31, 2021 March 31, 2020
QRG Foundation 2.23 2.67
The Vivekananda Ashrama - 0.05
2.23 2.72
(viii) Contribution to post employee benefit plan

(` in crores)
March 31, 2021 March 31, 2020
Havells India Limited Employees Gratuity Trust 19.08 19.38
(ix) Managerial remuneration

(` in crores)
March 31, 2021 March 31, 2020
Key Management Personnel
ESPP expense 2.86 7.40
Non-Executive Directors
Director sitting fees 0.45 0.35
Commission 0.90 0.90
Remuneration to other Related Parties
Salaries, wages, bonus, commission and other benefits 2.50 -
55.78 44.66
210
Introduction 01-13
(D) Balances at the year end

(i) Amount Payables
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Guptajee & Company 3.27 3.79
QRG Foundation 0.27 -
Aartas Care Private Limited 0.00 -
Integrated Report
OP Gupta and Company 0.00 -
Subsidiaries / Step down Subsidiaries
Havells Guangzhou International Ltd. 0.88 1.16
15.85 4.95
a) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs
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in cash. There have been no guarantees provided or received for any related party receivables or payables.
For the year ended March 31, 2021, the Company has not recorded any impairment of receivables relating to
amounts owed by related parties (March 31, 2020: ` Nil). This assessment is undertaken each financial year
through examining the financial position of the related party and the market in which the related party operates.
Statutory Reports
b) All the liabilities for post retirement benefits being ‘Gratuity’ are provided on actuarial basis for the Company as a
whole, accordingly the amount pertaining to Key management personnel are not included above.
c) Transactions with related parties are reported gross of Goods and Service Tax.
7 Share based payments

The Company has in place following employee stock purchase plan approved by shareholders of the Company in
compliance with Securities and Exchange Board of India (Share Based Employee Benefits) regulators, 2014 :
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(a) Havells Employee Long Term Incentive Plan 2014 : In accordance with this scheme, 110,949 (March 31, 2020 :
169,597) share options of ` 1 each were granted, out of which 109,259 (March 31, 2020: 169,195) share options of
` 1 each were vested and allotted on April 14,2020 (March 31, 2020 : May 28, 2019) to eligible employees at ` 467.35
(March 31, 2020: ` 733.90) per share as contributed by these employees. As per the scheme, 50% of the shares are
under lock in period of 13 months and balance 50% for 2 years. Also as per the scheme, the Company is obliged to pay
50% of the contribution made by eligible employees as retention bonus over a period of two years in equal instalments.
Accordingly, a sum of ` 2.88 crores (March 31, 2020 : ` 4.89 crores) has been recognised as employee stock purchase
plan expense in note 28.
(b) Havells Employee Stock Purchase Plan 2015 : In accordance with this scheme, 90,000 (March 31, 2020: 150,000)
share options of ` 1 each were granted, vested and allotted on April 14,2020 (March 31, 2020: May 28, 2019) at
` 467.35 (March 31, 2020: ` 733.90) per share to eligible employees as contributed by the Company. As per the
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scheme, 78% of the shares are under lock in period of 13 months and remaining 22% are under lock in period for 2
years. Accordingly, a sum of ` 4.21 crores (March 2020 : ` 11.01 crores) has been recognised as employee stock
purchase plan expenses in note 28.
(c) Havells Employee Stock Purchase Plan 2016 : In accordance with the said scheme, 13,157 (March 31, 2020: 16,273)
share options of ` 1 each were granted to eligible employees with graded vesting in three years starting from 2020.
During the year, 10913 equity shares of ` 1 each (March 31, 2020 : 10729 equity shares) were allotted at ` 467.35 (March
31, 2020 : ` 733.90) per share on April 14,2020. Accordingly, a sum of ` 0.50 crores (March 31, 2020: 1.16 crores) has
been recognised as employee stock purchase plan expense in note 28 and balance outstanding of ` 0.64 crores (March
31, 2020 : 0.64 crores) in note 14(B).
211

(i) Set out below is a summary of options granted and vested during the year under the plan
2020-21 2019-20
Summary of Stock Options Number of Weighted average Number of Weighted average
Stock Options exercise price per Stock Options exercise price per
share option share option
Options outstanding at the beginning of the year 11,030 - 11,150 -
Options granted during the year 214,106 467.35 335,870 733.90
Options vested and exercised during the year 210,172 467.35 329,924 733.90
Options lapsed during the year 1,690 467.35 6,066 733.90
Options outstanding at the end of the year 13,274 - 11,030 -
The weighted average share price at the date of exercise of options exercised during the year ended March 31, 2021 was
` 467.35 per share (March 31, 2020 : ` 733.90)
(ii) Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Particular March 31, 2021 March 31, 2020
Grant date March 31, May 28, 2019 May 28, 2019 May 10, 2018
2020
Expiry date 2021-22 and 2021-22 2021-22 2020-21
2022-23
Outstanding share options 8773 4501 9001 2029
Weighted average remaining contractual life of 2 years 1 year 2 years 1 year
options outstanding at the end of the year
The fair value at grant date of options granted during the year ended March 31, 2021 was ` 458.69 per share (March 31,
2020 was ` 723.44 per share). The fair value at the grant date is determined using Black Scholes valuation model which
takes into account the exercise price, the terms of the options, the share price at grant date and expected price volatility of
the underlying shares, the expected dividend yield and the risk free interest rate for the term of the option.
(iii) The Model inputs for options granted:

Expected Price volatility of the company's share 29.55% 28.72%
Expected Dividend Yield 0.75% 0.72%
Share price at the grant date ` 467.35 ` 733.90
Risk free interest rate 6.73% 6.73%
(iv) The expected price volatility is based on the historical volatility (based on remaining life of the options), adjusted
for any expected change to future volatility due to publically available information.
(v) Expense arising from shared based payment transactions
(` in crores)
Havells Employees Long Term Incentive Plan 2014 2.88 4.89
Havells Employees Stock Purchase Plan 2015 4.21 11.01
Total expense recognised in the statement of profit and loss account as a 7.59 17.06
part of employee benefit expense:
212
Introduction 01-13
8 Corporate Social Responsibility

s per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of
A
the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a CSR committee has been
formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013.Details are as under:
Details of CSR Expenditure:
(` in crores)
March 31, 2021 March 31, 2020
Integrated Report
Contribution to QRG Foundation 2.23 1.77
Contribution to Ashoka University 4.00 4.00
Contribution to BML - 8.00
Others 4.24 6.55
Accrual towards unspent obligation in relation to
Ongoing Project 12.00 -
Other than ongoing Project - -
Total 22.47 20.32
14-44
Less: Excess spent during the year to be carry forward to FY 2021-22 1.50 -
Amount recognised in Statement of Profit and Loss 20.97 20.32
Amount required to be spent as per section 135 of the Act 20.97 20.29
Statutory Reports
Amount approved by the Board to be spent during the year 20.97 20.29
Amount spent during the year on

(i) Construction/ acquisition of assets 0.52 1.57
(ii) Contribution to Trust/Universities 4.00 14.72
(iii) On purpose other than above 5.95 4.03
Total Amount Spent 10.47 20.32
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Amount yet to be spent 12.00 -
Total 22.47 20.32
Less: Excess spent during the year to be carry forward to FY 2021-22 1.50
Total 20.97 20.32
Details of ongoing CSR projects under Section 135(6) of the Act

(` in crores)
Opening Balance Amount required to be Amount spent during the year Closing Balance
spent during the year
With the In Separate From From Separate With the In Separate
Company CSR Unspent Company’s CSR Unspent Company CSR Unspent
A/c bank account account account
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- - 16.00 4.00 - 12.00 -
Details of CSR expenditure under Section 135(5) of the Act in respect of unspent amount other than
ongoing projects
(` in crores)
Balance Amount deposited in Specified Fund Amount required to Amount spent Balance
unspent as at of Schedule VII of the Act within 6 be spent during during the year unspent as at
April 01, 2020 months the year March 31, 2021
- - 6.47 6.47 -
213

Details of excess CSR expenditure under Section 135(5) of the Ac

(` in crores)
Balance excess spent as at Amount required to be Amount spent Balance excess spent as at
April 01, 2020 spent during the year during the year March 31, 2021
- 20.97 22.47 1.50
9 Fair value measurements

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments:
(` in crores)
Carrying Value Fair Value
As at As at As at As at
Financial instruments by category
Financial assets valued at amortized cost
Investments with financial institution 306.30 - 306.30 -
Cash and bank balances (Current) 1,624.74 1,106.92 1,624.74 1,106.92
Trade Receivables 563.63 248.88 563.63 248.88
Other Financial assets (Current) 45.99 29.44 45.99 29.44
Other Financial assets (Non-current) 19.94 21.37 19.94 21.37
2,560.60 1,406.61 2,560.60 1,406.61
Financial Liabilities valued at amortized cost
Trade Payables 1,596.78 1,414.07 1,596.78 1,414.07
Borrowings (non-current) 393.65 - 393.65 -
Lease Liability (current and non current) 130.66 121.61 130.66 121.61
Other financial liabilities (non-current) 1.31 1.13 1.31 1.13
Other financial liabilities (current) 668.98 531.30 668.98 531.30
2,791.38 2,068.11 2,791.38 2,068.11
The management assessed that cash and cash equivalents, trade receivables, trade payables, other current financial assets
and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.
The fair value of the other financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods
and assumptions were used to estimate the fair values:
1) The fair value of unquoted instruments, other non-current financial assets and non-current financial liabilities is estimated
by discounting future cash flows (DCF model) using rates currently available for debt on similar terms, credit risk
and remaining maturities. The valuation requires management to use unobservable inputs in the model, of which the
significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably
possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.
2) The fair values of the Company’s interest-bearing borrowings are determined by using DCF method using discount rate
that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at 31
March 2021 was assessed to be insignificant.
3) Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk
factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this
evaluation, allowances are taken into account for the expected credit losses of these receivables.
214
Introduction 01-13
4) Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: The fair value of financial instruments traded in active markets is based on quoted (unadjusted) market prices
at the end of the reporting period for identical assets or liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Integrated Report

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
There are no transfers among levels 1, 2 and 3 during the year.
This section explains the judgement and estimates made in determining the fair value of financial assets that are:
a) Recognised and measured at Fair value
b) Measured at amortised cost and for which fair value is disclosed in financial statements
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Quantitative disclosures of fair value measurement hierarchy for assets as on March 31, 2021
(` in crores)
March 31, 2021 Level 1 Level 2 Level 3
Statutory Reports
Assets carried at amortized cost for which fair value
are disclosed
Other Financial assets (Non-current) 19.94 - - 19.94
Other Financial assets (Current) 45.99 - - 45.99
Liabilities carried at amortized cost for which fair

value are disclosed
Borrowings (non-current) 393.65 - - 393.65
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Lease Liability (current and non current) 130.66 - - 130.66
Other financial liabilities (non-current) 1.31 - - 1.31
Other financial liabilities (current) 668.98 - - 668.98
(` in crores)
March 31, 2020 Level 1 Level 2 Level 3
Assets carried at amortized cost for which fair value
are disclosed
Other Financial assets (non-current) 21.37 - - 21.37
Other Financial assets (current) 29.44 - - 29.44
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Liabilities carried at amortized cost for which fair

value are disclosed
Lease Liability (current and non current) 121.61 - - 121.61
215

10 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets
include trade and other receivables, and cash and cash equivalents that are derived directly from its operations.
The Company’s financial risk management is an integral part of how to plan and execute its business strategies.
The Company is exposed to market risk, credit risk and liquidity risk.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees
the management of these risks. The senior professionals working to manage the financial risks and the appropriate
financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee.
This process provides assurance to Company’s senior management that the Company’s financial risk-taking activities
are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in
accordance with Company policies and Company risk objective. In the event of crisis caused due to external factors
such as caused by recent pandemic “COVID-19”, the management assesses the recoverability of its assets, maturity of
its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and
external source of funds. These forecast and assumptions are reviewed by board of directors.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below:
(a) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such
as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings,
deposits, investments, and foreign currency receivables and payables. The sensitivity analysis in the following sections
relate to the position as at reporting date. The analysis exclude the impact of movements in market variables on: the
carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.
The sensitivity of the relevant Profit and Loss item and equity is the effect of the assumed changes in the respective market
risks. This is based on the financial assets and financial liabilities held as of March 31, 2021 and March 31, 2020
(i) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company’s operating activities (when revenue or expense is denominated in foreign
currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective
countries. The Company basis their assessment believes that the probability of the occurrence of their forecasted
transactions is not impacted by COVID‐19 pandemic. The Company evaluates exchange rate exposure arising
from foreign currency transactions and follows established risk management policies.
Foreign currency risk sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, AED, JPY, CNY and
other currencies including KES, NPR, CHF, LKR, MWK, SLL and GBP exchange rates, with all other variables held
constant. The impact on the Company profit before tax and equity is due to changes in the fair value of monetary
assets and liabilities. Foreign currency exposures recognised by the Company that have not been hedged by a
derivative instrument or otherwise are as under:
(` in crores)
March 31, 2021 Gain/ (loss)
Impact on profit before tax and equity
Currency Currency Foreign Indian Rupees 1% increase 1% decrease
Symbol Currency
United States Dollar USD $ (3.06) (224.87) (2.25) 2.25
EURO EUR € (0.12) (10.73) (0.11) 0.11
Arab Emirates Dirham AED AED 0.02 0.38 0.00 (0.00)
Japanese Yen JPY JPY (0.41) (0.27) (0.00) 0.00
Chinese RMB\CNY CNY CNY (1.80) (20.11) (0.20) 0.20
Other currencies (4.50) (0.06) (0.00) 0.00
216
Introduction 01-13
(` in crores)
Gain/ (loss)
March 31, 2020
Symbol Currency
EURO EUR € (0.17) (14.51) (0.15) 0.15
Integrated Report

Notes:
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Figures in bracket represents payables
(ii) Interest Rate Risk
Statutory Reports
Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s long term debt obligation at floating interest rates. The Company’s borrowings
outstanding as at March 31, 2021 and March 31, 2020 comprise of long term loans.
Interest rate Sensitivity of Borrowings

With all other variables held constant, the following table demonstrates the sensitivity to a reasonably possible
change in interest rates on floating rate portion of loans and borrowings as on date.
March 31, 2021 March 31, 2020
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Increase/ Impact on profit Increase/ Impact on profit
decrease in before tax and decrease in before tax and
basis points Equity basis points Equity
Term Loan/External Commercial Borrowing +0.50 (2.46) +0.50 (0.20) Financial Statements
-0.50 2.46 -0.50 0.20
(iii) Commodity Price Risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of industrial and domestic cable and other electronic items and therefore require a continuous
supply of copper and aluminium being the major input used in the manufacturing. To mitigate the risk of supply
and price fluctuations, Domestic and overseas sources are bench-marked to Optimize the allocation of business
share among various sources. The Company’s Board of Directors has developed and enacted a risk management
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strategy regarding commodity price risk and its mitigation. The Company mitigated the risk of price volatility
by entering Long Term & Short term contracts for the Purchase of these commodities basis estimated annual
requirements.
(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other
financial instruments.
217

(i) Trade Receivables and Contract Assets

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures
and control relating to customer credit risk management. Credit quality of a customer is assessed based on an
extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment.
Outstanding customer receivables are regularly monitored and any shipments to major customers are generally
covered by Trade Receivable buyout facility without recourse, letters of credit and other forms of security.
An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss
method based on provision matrix. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables and contract assets as low, as its customers are located in
several jurisdictions and industries and operate in largely independent markets.
(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department
in accordance with the Company’s policy. Investments of surplus funds are made in bank deposits and other risk
free securities. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through
counterparty’s potential failure to make payments.
The Company’s maximum exposure to credit risk for the components of the balance sheet at 31 March 2021 is the
carrying amounts. The Company’s maximum exposure relating to financial instrument is noted in liquidity table below.
Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery,
such as debtor failing to engage in the repayment plan with the Company.
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Financial assets for which allowance is measured using 12 months Expected
Credit Loss Method (ECL)
Investment with financial institution 306.30 -
Cash and cash equivalents (Current) 326.57 242.09
Bank balances other than above (Current) 1,298.17 864.83
Others Non Current financial assets 19.94 21.37
Others Current financial assets 45.99 29.44
1,996.97 1,157.73
Financial assets for which allowance is measured using Life time Expected
Credit Loss Method (ECL)
Trade Receivables 563.63 248.88
563.63 248.88
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks.
The ageing analysis of trade receivables has been considered from the date the invoice falls due
(` in crores)
Particulars As at As at
March 31, 2021 March 31, 2020
Trade Receivables
Neither past due nor impaired 421.44 84.99
0 to 180 days due past due date 95.75 141.36
More than 180 days past due date 46.44 22.53
Total Trade Receivables 563.63 248.88
The following table summarizes the change in loss allowance measured

using the life time expected credit loss model:-
As at the beginning of year 44.87 26.64
Addition and utilization during the year 24.48 18.23
As at the end of year 69.35 44.87
218
Introduction 01-13
(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at
reasonable price. The Company’s objective is to at all times maintain optimum levels of liquidity to meet its cash and
liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management
system. It maintains adequate source of financing through the use of short term bank deposits, short term loans, short
term commercial papers and cash credit facility. Processes and policies related to such risks are overseen by senior
management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected
cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.
Maturity profile of financial liabilities
Integrated Report
The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting
date based on contractual undiscounted payments.
(` in crores)
As at March 31, 2021 Less than 1 year 1 to 5 years More than 5 years Total
Borrowings 98.55 393.65 - 492.20
Other non current financial liabilities - 1.31 - 1.31
Trade payables 1,596.78 - - 1,596.78
Lease Liability (undiscounted) 37.52 90.55 95.10 223.17
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Other current financial liabilities 541.28 - - 541.28
Borrowings 40.50 - - 40.50
Statutory Reports
Other non current financial liabilities - 1.13 - 1.13
Trade payables 1,414.07 - - 1,414.07
11 Capital Management
For the purposes of Company’s capital management, Capital includes equity attributable to the equity holders of the
Company and all other equity reserves. The primary objective of the Company’s capital management is to safeguard
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its ability to continue as going concern and to ensure that it maintains an efficient capital structure and maximize
shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed Financial Statements
capital requirements. No changes were made in the objectives, policies or processes for managing capital during the
year ended March 31, 2021 and March 31, 2020 except for budgeting for cash flow projections considering the impact
of ongoing pandemic COVID - 19. The Company monitors capital using gearing ratio, which is net debt divided by total
capital plus net debt. Net debt is calculated as loans and borrowings less cash and cash equivalent.
(` in crores)
March 31, 2021 March 31, 2020
Loans and borrowings {refer note 15(A) and 19(C)} 492.20 40.50
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Cash and cash equivalents {refer note 11(C)} (326.57) (242.09)

Net Debt 165.63 (201.59)
Equity / Net Worth 5,164.45 4,304.81

Total Capital 5,164.45 4,304.81
Capital and Net Debt 5,330.08 4,103.22

Gearing ratio (Net Debt/Capital and Net Debt) 3.11% (4.91%)
Note: No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2021 and
March 31, 2020
219

12 Earnings per share

a) Basic Earnings per share
(` in crores)
Particulars year ended year ended
March 31, 2021 March 31, 2020
Numerator for earnings per share
Profit after taxation (` in crores) 1039.64 733.03
Denominator for earnings per share
Weighted average number of equity shares outstanding (Numbers) 626,005,520 625,731,426
during the year
Earnings per share-Basic (one equity share of ` 1/- each) ` 16.61 11.71
b) Diluted Earnings per share

(` in crores)
Particulars year ended year ended
March 31, 2021 March 31, 2020
Profit after taxation (` in crores) 1039.64 733.03
Weighted average number of equity shares for basic earning (Numbers) 626,005,520 625,731,426
per share
Effect of dilution
Share options (Numbers) 13,380 14,929
Weighted average number of equity shares outstanding during (Numbers) 626,018,900 625,746,355
the year adjusted for the effect of dilution
Earnings per share- Diluted (one equity share of ` 1/- each) ` 16.61 11.71
13 Dividend Paid And Proposed

(` in crores)
March 31, 2021 March 31, 2020
Dividend declared and paid during the year:
Final Dividend paid for the year ended March 31, 2020 of ` Nil per share of ` 1 - 281.61
(` 4.5 per share of ` 1 each for the year ended March 31,2019)
Dividend distribution tax on final dividend - 57.89
Interim Dividend for the year ended March 31, 2021, ` 3 per share of ` 1 each (` 187.80 250.32
4 per share of ` 1 each for the year ended March 31, 2020)
Dividend distribution tax on interim dividend - 51.45
187.80 641.27
Proposed Dividends on equity shares:
Final Dividend recommended by the board of directors for the year ended March 219.10 -
31, 2021 ` 3.5 per share of ` 1 each (March 31, 2020: ` Nil) subject to approval
of shareholders in the ensuing annual general meeting.
Dividend distribution tax on above - -
219.10 -
Note: Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as liability
(Including Dividend Distribution Tax) as at reporting date.
220
Introduction 01-13
14 Disclosure required under Section 186 (4) of the Companies Act, 2013.
Particulars of Investments made:
Sr. Name of the Investee Investment Outstanding Investment Outstanding
No made Balance made Balance
1 Havells Holdings Limited - 1.18 - 1.18
2 Jiangsu Havells Sylvania Lighting Co. Limited {refer note no. - 17.27 - 18.85
11(E)(b) and note 13}
3 Havells Guangzhou International Limited - 0.45 - 0.45
Integrated Report
15 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
Company towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be
notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the
same in the financial statements in the period in which the Code becomes effective and the related rules are published.
16 Consequent to the disruption caused due to COVID-19, the Company has made an assessment as at March 31, 2021
of recoverability of the carrying values of its assets such as property, plant and equipment, intangible assets having
indefinite useful life, goodwill, inventory, trade receivables, and other current assets giving due consideration to the
14-44
internal and external factors. Further, on account of continued spread of COVID-19 disease in the country, the Company
has made timely and requisite changes in business model which has resulted in consistent growth across the product
segments during the year. The Company is continuously monitoring the situation arising on account of COVID-19 and
will make appropriate action required, if any.
Statutory Reports
17 The figures have been rounded off to the nearest crore of rupees upto two decimal places. The figure 0.00 wherever
stated represents value less than ` 50,000/-.
18 Note No.1 to 33 form integral part of the balance sheet and statement of profit and loss.
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DIN: 00011892 DIN: 00002842

Date: May 20, 2021
Place: Delhi
142-309
221
Independent Auditor’s Report

To the Members of Havells India Limited in the ‘Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements’ section of our report. We
Report on the Audit of the Consolidated Financial are independent of the Group in accordance with the ‘Code
Statements of Ethics’ issued by the Institute of Chartered Accountants
of India together with the ethical requirements that are
Opinion relevant to our audit of the financial statements under the
We have audited the accompanying consolidated financial provisions of the Act and the Rules thereunder, and we have
statements of Havells India Limited (hereinafter referred to fulfilled our other ethical responsibilities in accordance with
as “the Holding Company”), its subsidiaries (the Holding these requirements and the Code of Ethics. We believe
Company and its subsidiaries together referred to as “the that the audit evidence we have obtained is sufficient and
Group”) comprising of the consolidated Balance sheet appropriate to provide a basis for our audit opinion on the
as at March 31 2021, the consolidated Statement of Profit consolidated financial statements.
and Loss, including other comprehensive income, the
consolidated Cash Flow Statement and the consolidated Key Audit Matters
Statement of Changes in Equity for the year then ended, and Key audit matters are those matters that, in our professional
notes to the consolidated financial statements, including judgment, were of most significance in our audit of the
a summary of significant accounting policies and other consolidated financial statements for the financial year
explanatory information (hereinafter referred to as “the ended March 31, 2021. These matters were addressed in the
consolidated financial statements”). context of our audit of the consolidated financial statements
as a whole, and in forming our opinion thereon, and we do
In our opinion and to the best of our information and not provide a separate opinion on these matters. For each
according to the explanations given to us and based on matter below, our description of how our audit addressed
the consideration of reports of other auditor on separate the matter is provided in that context.
financial statements and on the other financial information of
the subsidiary company, the aforesaid consolidated financial We have determined the matters described below to be
statements give the information required by the Companies the key audit matters to be communicated in our report. We
Act, 2013, as amended (“the Act”) in the manner so required have fulfilled the responsibilities described in the Auditor’s
and give a true and fair view in conformity with the accounting responsibilities for the audit of the consolidated financial
principles generally accepted in India, of the consolidated statements section of our report, including in relation to these
state of affairs of the Group, as at March 31, 2021, their matters. Accordingly, our audit included the performance of
consolidated profit including other comprehensive loss, their procedures designed to respond to our assessment of the
consolidated cash flows and the consolidated statement of risks of material misstatement of the consolidated financial
changes in equity for the year ended on that date. statements. The results of audit procedures performed by
us and by other auditors of components not audited by us,
Basis for Opinion as reported by them in their audit reports furnished to us
We conducted our audit of the consolidated financial by the management, including those procedures performed
statements in accordance with the Standards on Auditing to address the matters below, provide the basis for our
(SAs), as specified under section 143(10) of the Act. Our audit opinion on the accompanying consolidated financial
responsibilities under those Standards are further described statements.
Assessment of impairment of goodwill and intangible assets with indefinite useful life (as described in note 4 of the
consolidated financial statements)
As at March 31, 2021 the consolidated financial statements Our audit procedures, among others included the followings:
includes Goodwill of ` 310.47 crores and intangible assets
(a) We obtained an understanding of the process and tested
of ` 1029.00 crores having indefinite useful life pertaining to
the operating effectiveness of internal controls over the
acquisition of a business in earlier years.
impairment assessment process and preparation of the
cash flow forecast based on assumptions and inputs to
the model used to estimate the future cash flows.
222
Introduction 01-13
Assessment of impairment of goodwill and intangible assets with indefinite useful life (as described in note 4 of the
consolidated financial statements)
In accordance with Indian Accounting Standards (Ind-AS) (b) We assessed the Group’s methodology applied in
– 36 ‘Impairment of Assets’, the management has allocated determining the CGU to which these assets are allocated.
goodwill and intangible assets having indefinite life to the
(c) We assessed the assumptions used in the cash flow
underlying cash generating unit (CGU) and tested these for
forecasts including discount rates, expected growth
annual impairment using a discounted cash flow model.
rates and terminal growth rates.
The impairment test model used by management factors
(d) We compared the cash flow forecasts used in
impact of COVID-19 and also includes sensitivity testing of
impairment testing to approved budget and other
key assumptions.
relevant market and economic information, as well as
The annual impairment of goodwill and intangible assets testing the underlying calculations.
having indefinite useful life and impact of COVID-19
(e) We discussed the potential changes in key assumptions
Integrated Report
pandemic on such assessment is considered as significant
as compared to previous year and impact of COVID-19
accounting judgement and estimate and a key audit matter
in order to evaluate whether the inputs and assumptions
because the assumptions on which the tests are based are
used in the cash flow forecasts were suitable.
highly judgmental and are affected by future market and
economic conditions which are inherently uncertain, and (f) We obtained the management testing of impairment
materiality of the balances to the consolidated financial and report of management specialist on impairment
statements as a whole. assessment and discussed the assumptions and other
factors used in the assessment.
(g) We also engaged specialist to assess the assumptions
14-44
and methodology used by the management to
determine the recoverable amount and also assessed
the recoverable value headroom by performing
sensitivity testing of key assumptions used.
Statutory Reports
(h) We tested the arithmetical accuracy of the models.
(i)
We evaluated the adequacy of disclosures in
the consolidated financial statements related to
management’s assessment including impact of
COVID-19 on the annual impairment tests and as
required under Indian Accounting Standard (Ind-AS)
-36 Impairment of Assets.
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Other Information Responsibilities of Management for the Consolidated
The Holding Company’s Board of Directors is responsible Financial Statements
for the other information. The other information comprises The Holding Company’s Board of Directors is responsible
the information included in the Annual report, but does for the preparation and presentation of these consolidated Financial Statements
not include the consolidated financial statements and our financial statements in terms of the requirements of the
auditor’s report thereon. Act that give a true and fair view of the consolidated
financial position, consolidated financial performance
Our opinion on the consolidated financial statements does including other comprehensive income, consolidated
cash flows and consolidated statement of changes in
not cover the other information and we do not express any
equity of the Group in accordance with the accounting
form of assurance conclusion thereon.
principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under
In connection with our audit of the consolidated financial
section 133 of the Act read with the Companies (Indian
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statements, our responsibility is to read the other information

Accounting Standards) Rules, 2015, as amended. The
and, in doing so, consider whether such other information respective Board of Directors of the companies included
is materially inconsistent with the consolidated financial in the Group are responsible for maintenance of adequate
statements or our knowledge obtained in the audit or accounting records in accordance with the provisions of
otherwise appears to be materially misstated. If, based the Act for safeguarding of the assets of the Group and for
on the work we have performed, we conclude that there preventing and detecting frauds and other irregularities;
is a material misstatement of this other information, we are selection and application of appropriate accounting
required to report that fact. We have nothing to report in this policies; making judgments and estimates that are
regard. reasonable and prudent; and the design, implementation
223
and maintenance of adequate internal financial controls, opinion on whether the Holding Company has adequate
that were operating effectively for ensuring the accuracy internal financial controls with reference to financial
and completeness of the accounting records, relevant statements in place and the operating effectiveness of
to the preparation and presentation of the consolidated such controls.
financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or • Evaluate the appropriateness of accounting policies
error, which have been used for the purpose of preparation used and the reasonableness of accounting estimates
of the consolidated financial statements by the Directors and related disclosures made by management.
of the Holding Company, as aforesaid.
• onclude on the appropriateness of management’s use
C
In preparing the consolidated financial statements, the of the going concern basis of accounting and, based
respective Board of Directors of the companies included on the audit evidence obtained, whether a material
in the Group are responsible for assessing the ability of uncertainty exists related to events or conditions that
the Group to continue as a going concern, disclosing, as may cast significant doubt on the ability of the Group
applicable, matters related to going concern and using the to continue as a going concern. If we conclude that
going concern basis of accounting unless management a material uncertainty exists, we are required to draw
either intends to liquidate the Group or to cease operations, attention in our auditor’s report to the related disclosures
or has no realistic alternative but to do so. in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our
Those respective Board of Directors of the companies conclusions are based on the audit evidence obtained
included in the Group are also responsible for overseeing up to the date of our auditor’s report. However, future
the financial reporting process of the Group. events or conditions may cause the Group to cease to
continue as a going concern.
Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements • valuate the overall presentation, structure and content
E
of the consolidated financial statements, including the
Our objectives are to obtain reasonable assurance about
disclosures, and whether the consolidated financial
whether the consolidated financial statements as a whole
statements represent the underlying transactions and
are free from material misstatement, whether due to fraud
events in a manner that achieves fair presentation.
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, • btain sufficient appropriate audit evidence regarding
O
but is not a guarantee that an audit conducted in accordance the financial information of the entities or business
with SAs will always detect a material misstatement when it activities within the Group of which we are the
exists. Misstatements can arise from fraud or error and are independent auditors, to express an opinion on the
considered material if, individually or in the aggregate, they consolidated financial statements. We are responsible
could reasonably be expected to influence the economic for the direction, supervision and performance of
decisions of users taken on the basis of these consolidated the audit of the financial statements of such entities
financial statements. included in the consolidated financial statements
of which we are the independent auditors. For the
As part of an audit in accordance with SAs, we exercise other entities included in the consolidated financial
professional judgment and maintain professional skepticism statements, which have been audited by other
throughout the audit. We also: auditors, such other auditors remain responsible for the
direction, supervision and performance of the audits
• Identify and assess the risks of material misstatement carried out by them. We remain solely responsible for
of the consolidated financial statements, whether due our audit opinion.
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence We communicate with those charged with governance
that is sufficient and appropriate to provide a basis of the Holding Company and such other entities
for our opinion. The risk of not detecting a material included in the consolidated financial statements of
misstatement resulting from fraud is higher than for which we are the independent auditors regarding,
one resulting from error, as fraud may involve collusion, among other matters, the planned scope and timing
forgery, intentional omissions, misrepresentations, or of the audit and significant audit findings, including
the override of internal control. any significant deficiencies in internal control that we
identify during our audit.
• btain an understanding of internal control relevant to
O
the audit in order to design audit procedures that are
We also provide those charged with governance
appropriate in the circumstances. Under section 143(3) with a statement that we have complied with relevant
(i) of the Act, we are also responsible for expressing our ethical requirements regarding independence, and
224
to communicate with them all relationships and other (b) The accompanying consolidated financial statements
Introduction 01-13
matters that may reasonably be thought to bear on include unaudited financial statements and other
our independence, and where applicable, related unaudited financial information in respect of one
safeguards. subsidiary company, whose financial statements and
other financial information reflect total assets of ` 22.31
From the matters communicated with those charged as at March 31, 2021, and total revenues of ` Nil,
with governance, we determine those matters that were total net (loss) of ` (0.10) crores, total comprehensive
of most significance in the audit of the consolidated income of ` 0.04 crores and net cash outflows of
financial statements for the financial year ended March ` 0.41 crores for the year ended on that date. These
31, 2021 and are therefore the key audit matters. We unaudited financial statements and other unaudited
describe these matters in our auditor’s report unless financial information have been furnished to us by the
law or regulation precludes public disclosure about the management. Our opinion, in so far as it relates amounts
matter or when, in extremely rare circumstances, we and disclosures included in respect of this subsidiary,
determine that a matter should not be communicated and our report in terms of sub-sections (3) of Section
Integrated Report
in our report because the adverse consequences of 143 of the Act in so far as it relates to the aforesaid
doing so would reasonably be expected to outweigh subsidiary, is based solely on such unaudited financial
the public interest benefits of such communication. statements and other unaudited financial information.
In our opinion and according to the information and
Other Matter explanations given to us by the Management, these
financial statements and other financial information are
(a) We did not audit the financial statements and other
not material to the Group.
financial information, in respect of one subsidiary
company whose financial statements include total

Our opinion above on the consolidated financial
14-44
assets of ` 12.23 crores as at March 31, 2021, and
statements, and our report on Other Legal and
total revenues of ` 37.94 crores total net profit of
Regulatory Requirements below, is not modified in
` 4.77 crores, total comprehensive income of ` 5.06
respect of the above matters with respect to our
crores and net cash inflows of ` 2.85 crores for the
reliance on the work done and the reports of the other
Statutory Reports
year ended on that date. These financial statement
auditor and the financial statements and other financial
and other financial information have been audited
information certified by the Management.
by other auditors, which financial statements, other
financial information and auditor’s reports have been Report on Other Legal and Regulatory Requirements
furnished to us by the management. Our opinion on the
As required by Section 143(3) of the Act, based on our
consolidated financial statements, in so far as it relates
audit and on the consideration of report of the other auditor
to the amounts and disclosures included in respect of
on separate financial statements and the other financial
this subsidiary company and our report in terms of sub-
information of subsidiary, as noted in the ‘other matter’
45-141
sections (3) of Section 143 of the Act, in so far as it
paragraph we report, to the extent applicable, that:
relates to the aforesaid subsidiary company, is based
solely on the report of such other auditor.
(a)
We/the other auditor whose report we have relied
upon have sought and obtained all the information and
The subsidiary company is located outside India whose
explanations which to the best of our knowledge and
financial statements and other financial information
belief were necessary for the purposes of our audit of
have been prepared in accordance with accounting
the aforesaid consolidated financial statements;
principles generally accepted in its respective country
and which have been audited by other auditors under (b) In our opinion, proper books of account as required by
generally accepted auditing standards applicable law relating to preparation of the aforesaid consolidation
in its respective country. The Holding Company’s of the financial statements have been kept so far as
management has converted the financial statements of it appears from our examination of those books and
such subsidiary located outside India from accounting
142-309
reports of the other auditors;

principles generally accepted in its respective country
to accounting principles generally accepted in India. (c)
The Consolidated Balance Sheet, the Consolidated
We have audited these conversion adjustments made Statement of Profit and Loss including the Statement
by the Holding Company’s management. Our opinion of Other Comprehensive Income, the Consolidated
in so far as it relates to the balances and affairs of Cash Flow Statement and Consolidated Statement
such subsidiary located outside India is based on the of Changes in Equity dealt with by this Report are in
report of other auditor and the conversion adjustments agreement with the books of account maintained for
prepared by the management of the Holding Company the purpose of preparation of the consolidated financial
and audited by us. statements;
225
(d)
In our opinion, the aforesaid consolidated financial (h)
With respect to the other matters to be included in
statements comply with the Accounting Standards the Auditor’s Report in accordance with Rule 11 of
specified under Section 133 of the Act, read with the Companies (Audit and Auditors) Rules, 2014,
Companies (Indian Accounting Standards) Rules, as amended, in our opinion and to the best of our
2015, as amended; information and according to the explanations given to
us and based on the consideration of the report of the
(e) On the basis of the written representations received other auditor on separate financial statements as also
from the directors of the Holding Company as on March the other financial information of the subsidiaries, as
31, 2021 taken on record by the Board of Directors of the noted in the ‘Other matter’ paragraph:
Holding Company, none of the directors of the Group’s i.
The consolidated Ind AS financial statements
companies incorporated in India, is disqualified as on disclose the impact of pending litigations on its
March 31, 2021 from being appointed as a director in consolidated financial position of the Group, in its
terms of Section 164 (2) of the Act. There is no Company consolidated financial statements – Refer Note 31
other than the Holding Company which is incorporated to the consolidated financial statements;
in India and hence reporting under this clause is not ii. The Group did not have any long term contracts
applicable to subsidiary companies; including derivative contracts for which there are
any material foreseeable losses;
(f)
With respect to the adequacy and the operating
effectiveness of the internal financial controls over iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
financial reporting with reference to consolidated Ind
and Protection Fund by the Holding Company,
AS financial statements of the Holding Company, refer
during the year ended March 31, 2021. There is no
to our separate Report in “Annexure 1” to this report.
Company other than the Holding Company which is
There is no Company other than the Holding Company
incorporated in India and hence reporting under this
which is incorporated in India and hence reporting clause is not applicable to subsidiary companies.
under this clause is not applicable to subsidiary
companies; For S.R. Batliboi & Co. LLP
(g) In our opinion, the managerial remuneration for the year ICAI Firm Registration Number: 301003E/E300005
ended March 31, 2021 has been paid / provided by
the Holding Company to its directors in accordance per Pankaj Chadha
with the provisions of section 197 read with Schedule Partner
V to the Act. There is no Company other than the Membership Number: 091813
Holding Company which is incorporated in India and UDIN: 21091813AAAACM5964
hence reporting under this clause is not applicable to Place of Signature: New Delhi
subsidiary companies; Date: May 20, 2021
226
ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED
Introduction 01-13
FINANCIAL STATEMENTS OF HAVELLS INDIA LIMITED
Report on the Internal Financial Controls under Clause Meaning of Internal Financial Controls Over Financial
(i) of Sub-section 3 of Section 143 of the Companies Act, Reporting With Reference to these Consolidated Ind AS
2013 (“the Act”) Financial Statements
In conjunction with our audit of the consolidated financial statements of A company’s internal financial control over financial reporting with
Havells India Limited as of and for the year ended March 31, 2021, we reference to these consolidated financial statements is a process
have audited the internal financial controls over financial reporting of designed to provide reasonable assurance regarding the reliability
Havells India Limited (hereinafter referred to as the “Holding Company”). of financial reporting and the preparation of financial statements
There is no Company other than the Holding Company which is for external purposes in accordance with generally accepted
incorporated in India and hence reporting about adequacy and the accounting principles. A company’s internal financial control
operating effectiveness of the internal financial controls over financial over financial reporting with reference to these consolidated Ind
reporting is not applicable for Company other than holding company. AS financial statements includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable
Integrated Report
Management’s Responsibility for Internal Financial Controls detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance
The Board of Directors of the Holding company are responsible for
that transactions are recorded as necessary to permit preparation
establishing and maintaining internal financial controls based on, “the
of financial statements in accordance with generally accepted
internal financial control over financial reporting criteria established
accounting principles, and that receipts and expenditures of the
by the Holding Company considering the essential components
company are being made only in accordance with authorisations
of internal control stated in the Guidance Note on Audit of Internal
of management and directors of the company; and (3) provide
Financial Controls Over Financial Reporting issued by the Institute
reasonable assurance regarding prevention or timely detection
of Chartered Accountants of India (ICAI)”. These responsibilities
of unauthorised acquisition, use, or disposition of the company’s
include the design, implementation and maintenance of adequate
assets that could have a material effect on the financial statements.
internal financial controls that were operating effectively for
14-44
ensuring the orderly and efficient conduct of its business, including
adherence to the respective company’s policies, the safeguarding Inherent Limitations of Internal Financial Controls Over
of its assets, the prevention and detection of frauds and errors, Financial Reporting With Reference to these Consolidated
the accuracy and completeness of the accounting records, and Ind AS Financial Statements
the timely preparation of reliable financial information, as required Because of the inherent limitations of internal financial controls
Statutory Reports
under the Companies Act 2013. over financial reporting with reference to these consolidated Ind
AS financial statements, including the possibility of collusion or
Auditor’s Responsibility improper management override of controls, material misstatements
Our responsibility is to express an opinion on the Company’s due to error or fraud may occur and not be detected. Also,
internal financial controls over financial reporting with reference projections of any evaluation of the internal financial controls over
to consolidated Ind AS financial statements based on our audit. financial reporting with reference to these consolidated Ind AS
We conducted our audit in accordance with the Guidance Note financial statements to future periods are subject to the risk that
on Audit of Internal Financial Controls Over Financial Reporting the internal financial control over financial reporting with reference
(the “Guidance Note”) and the Standards on Auditing, specified to these consolidated Ind AS financial statements may become
under section 143(10) of the Companies Act, 2013, to the extent inadequate because of changes in conditions, or that the degree of
45-141
applicable to an audit of internal financial controls, both issued by compliance with the policies or procedures may deteriorate.
the Institute of Chartered Accountants of India. Those Standards
and the Guidance Note require that we comply with ethical Opinion
requirements and plan and perform the audit to obtain reasonable In our opinion, the Holding Company have, maintained in all
assurance about whether adequate internal financial controls material respects, adequate internal financial controls over financial
over financial reporting with reference to consolidated financial reporting with reference to these consolidated Ind AS financial
statements was established and maintained and if such controls statements and such internal financial controls over financial
operated effectively in all material respects. reporting with reference to these consolidated Ind AS financial
statements were operating effectively as at March 31, 2021, based
Our audit involves performing procedures to obtain audit evidence on the internal control over financial reporting criteria established
about the adequacy of the internal financial controls over financial by the Holding Company considering the essential components
reporting with reference to these consolidated Ind AS financial of internal control stated in the Guidance Note on Audit of Internal
statements and their operating effectiveness. Our audit of internal Financial Controls Over Financial Reporting issued by the Institute
financial controls over financial reporting included obtaining an of Chartered Accountants of India.
understanding of internal financial controls over financial reporting with
142-309
reference to these consolidated financial statements, assessing the risk

For S.R. Batliboi & Co. LLP
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. per Pankaj Chadha
Partner
We believe that the audit evidence we have obtained, is sufficient and
UDIN: 21091813AAAACM5964
appropriate to provide a basis for our audit opinion on the Holding
Place of Signature: New Delhi
Company’s internal financial controls over financial reporting with
Date: May 20, 2021
reference to these consolidated Ind AS financial statements.
227
Consolidated Balance Sheet

as at March 31, 2021
(` in crores)
Notes As at As at
March 31, 2021 March 31, 2020
ASSETS
1 Non-current assets
Property, plant and equipment 3 1,860.83 1,899.59
Capital work in progress 3 86.26 82.77
Goodwill 4 310.47 310.47
Other Intangible assets 4 1,119.13 1,139.51
Intangible assets under development 4 3.65 3.36
Financial assets 6
(i) Trade receivables 3.32 7.96
(ii) Other financial assets 20.17 21.37
Other non-current assets 7 54.62 50.67
Non-current tax asset (net) 8 23.56 16.53
Total Non current assets 3,531.80 3,592.81
2 Current assets
Inventories 9 2,619.89 1,871.88
Financial assets 10
(i) Investments 306.30 -
(ii) Trade receivables 563.73 241.66
(iii) Cash and cash equivalents 354.62 267.70
(iv) Bank balances other than (iii) above 1,298.17 864.83
(v) Others financial assets 45.99 29.44
Other current assets 11 111.07 165.32
Total Current assets 5,319.88 3,460.84
Assets classified as held for sale 12 0.58 19.80
5,320.46 3,480.64
Total assets 8,852.26 7,073.45
EQUITY AND LIABILITIES

1 Equity
Equity share capital 13 62.60 62.58
Other equity 5,113.70 4,248.98
Total equity 5,176.30 4,311.56
2 Liabilities
Non-current liabilities
(i) Borrowings 393.65 -
(ii) Lease liabilities 101.51 89.74
Provisions 15 58.43 35.57
Deferred tax liabilities (Net) 16 339.11 286.52
Other non-current liabilities 17 - 17.71
Total Non current liabilities 898.58 434.99
Current liabilities
(i) Lease liabilities 29.15 31.87
(ii) Trade Payables
a) Total outstanding dues of micro enterprises and small enterprises 188.78 106.28
b) Total outstanding dues of creditors other than micro enterprises and small enterprises 1,408.36 1,307.54
Provisions 19 257.55 210.01
Current tax liabilities (net) 20 74.26 -
Other current liabilities 21 122.38 105.63
Total Current liabilities 2,777.38 2,326.90
Total equity and liabilities 8,852.26 7,073.45

The accompanying notes are an integral part of the consolidated financial statements.
DIN: 00011892 DIN: 00002842
Partner Director Company Secretary Associate
Membership No. 091813 DIN: 00002838 FCS No.: F 3348 Vice President- Finance
Date: May 20, 2021
Place: Delhi
228
Consolidated Statement of Profit and Loss
Introduction 01-13
(` in crores)
Notes Year ended Year ended
March 31, 2021 March 31, 2020
CONTINUING OPERATIONS
I INCOME
Revenue from operations 22 10,457.30 9,440.26
Other income 23 187.36 113.41
Total income 10,644.66 9,553.67
II EXPENSES
Integrated Report
Cost of raw materials and components consumed 24 5,381.95 4,379.64
Purchase of traded goods 25 1,638.82 1,280.81
Change in inventories of finished goods, traded goods and work in progress, etc. 26 (531.07) 172.74
Employee benefits expense 27 890.63 906.71
Finance costs 28 72.68 19.72
Depreciation and amortisation expenses 29 248.91 217.97
Other expenses 30 1,505.19 1,671.71
14-44
Total expenses 9,207.11 8,649.30
III Profit before tax from continuing operations 1,437.55 904.37
IV Income tax expenses 16
Current tax 340.65 198.99
Statutory Reports
Deferred tax (credit)/charge {refer note 16(e)} 52.59 (30.23)
Total tax expense 393.24 168.76
V Profit for the year from continuing operations 1,044.31 735.61
Discontinued Operations
Profit / (loss) before tax from discontinued operations {refer note 32(2)} - (0.26)
Tax expense on profit / (loss) from discontinued operations - -
VI Profit / (loss) for the year from discontinued operations net of tax - (0.26)
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VII Profit for the year 1,044.31 735.35
VIII Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods
(i) Re-measurement gains/(losses) on defined benefit plans {refer note 32(5)} (2.70) (4.98)
(ii) Income tax effect on above {refer note no 16(b)} 0.68 1.25
(2.02) (3.73)
Items will be reclassified to profit or loss in subsequent periods
(i) Exchange difference on translation of financial statements of foreign operations 0.43 0.50
(ii) Income tax effect on above - -
0.43 0.50
142-309
Other comprehensive income/(loss) for the year, net of tax (1.59) (3.23)
IX Total comprehensive income for the year, net of tax 1,042.72 732.12
Profit for the year attributable to
Equity holders of the parent company 1,044.31 735.35
Non controlling interests - -
1,044.31 735.35
229
Consolidated Statement of Profit and Loss

(` in crores)
Notes Year ended Year ended
March 31, 2021 March 31, 2020
Other comprehensive income / (loss) for the year attributable to
Equity holders of the parent company (1.59) (3.23)
(1.59) (3.23)
Total Comprehensive income for the year attributable to
Equity holders of the parent company 1,042.72 732.12
1,042.72 732.12
X Earnings per equity share (EPS) for continuing operations attributable to equity
holders of the parent company {refer note no. 32(13)}
Basic EPS (`) 16.68 11.76
Diluted EPS (`) 16.68 11.76
Earnings per equity share (EPS) for discontinued operations attributable to equity
holders of the parent company {refer note no. 32(13)}
Basic EPS (`) - (0.00)
Diluted EPS (`) - (0.00)
Earnings per equity share (EPS) for continuing and discontinued operations
attributable to equity holders of the parent company {refer note no. 32(13)}
(nominal value of share ` 1/-) 16.68 11.76
Basic EPS (`) 16.68 11.76
Diluted EPS (`)
DIN: 00011892 DIN: 00002842
Date: May 20, 2021

Place: Delhi
230
Consolidated Statement of Changes In Equity
Introduction 01-13
A) Equity Share Capital

Particulars Numbers Amount
(` in crores)
As at April 01, 2019 625,472,910 62.55
As at March 31, 2020 625,802,834 62.58
As at March 31, 2021 626,013,006 62.60
Integrated Report
B) Other Equity
(` in crores)
Particulars Attributable to equity shareholders of parent company
Reserves and surplus Items of OCI Total
Capital Securities General Share Retained Foreign
Reserve Premium Reserve Options earnings currency
Outstanding translation
14-44
account reserve
As at April 01, 2019 7.63 56.40 722.72 0.27 3,347.25 0.76 4,135.03
Profit for the year - - - - 735.35 - 735.35
Statutory Reports
Re-measurement gains / (losses) on defined - - - - (3.73) - (3.73)
benefit plans net of tax
Exchange difference on translation of - - - - - 0.50 0.50
financial statements of foreign operations
Total Comprehensive income for the year 732.12
Transaction with owners in their capacity
as owners:
45-141
Final Dividend paid for the financial year - - - - (281.61) - (281.61)
ended March 31,2019
Dividend distribution tax on Final Dividend - - - - (57.89) - (57.89)
Interim Dividend paid during the year - - - - (250.32) - (250.32)
Dividend distribution tax on interim dividend - - - - (51.45) - (51.45)

Employee stock option expense - - - 0.37 - - 0.37
Addition on equity shares issued under - 24.18 - - - 24.18
employee stock purchase plan
Transfer to statement of profit and loss - - - - - (1.45) (1.45)
account on account of liquidation of group
companies
142-309
As at March 31, 2020 7.63 80.58 722.72 0.64 3,437.60 (0.19) 4,248.98
Profit for the year - - - - 1,044.31 - 1,044.31

Other comprehensive income for the year - - -
Re-measurement gains / (losses) on defined - - - - (2.02) - (2.02)
benefit plans net of tax
Exchange difference on translation of - - - - - 0.43 0.43
financial statements of foreign operations
231
Consolidated Statement of Changes In Equity

(` in crores)
Particulars Attributable to equity shareholders of parent company
Reserves and surplus Items of OCI Total
Capital Securities General Share Retained Foreign
Reserve Premium Reserve Options earnings currency
Outstanding translation
account reserve
Total Comprehensive income for the year 1,042.72
Transaction with owners in their capacity
as owners:
Interim Dividend paid during the year - - - - (187.80) - (187.80)
Equity shares issued under employee stock - 9.80 - 0.01 - - 9.81
purchase plan
Options lapsedduring the year - - - (0.01) - - (0.01)
As at March 31, 2021 7.63 90.38 722.72 0.64 4,292.09 0.24 5,113.70

DIN: 00011892 DIN: 00002842
Date: May 20, 2021

Place: Delhi
232
Consolidated Statement of Cash Flows
Introduction 01-13
(` in crores)
March 31, 2021 March 31, 2020
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax from continued operations 1,437.55 904.37
Profit before tax from discontinued operations - (0.26)
Profit before tax for the year 1,437.55 904.11
Adjustments to reconcile profit before tax to net cash flows
Depreciation and amortisation expense 248.91 217.97
Loss /(gain) on disposal of property, plant and equipment (net) (40.39) 6.73
Integrated Report
Unrealized foreign exchange loss /(gain) (net) 1.30 (1.31)
Exchange difference on translation of financial statements foreign operations (0.43) (0.50)
Impairment allowance for trade receivables and other assets - credit impaired 24.48 18.23
Impairment of investment in joint venture 1.10 -
Unwinding of discount on long term provisions 4.21 3.55
Discounting of long term warranty provision (6.24) (4.21)
Interest income on bank deposits and investment (99.46) (69.58)
14-44
Interest expenses 58.29 5.17
Interest on lease liability 9.68 10.92
Liabilities no longer required written back (4.49) (4.33)
Employee stock option expense - 0.37
Statutory Reports
Operating Profit before working capital changes 1,633.40 1,087.94
Movement in working capital
(Increase)/ Decrease in trade receivables and contract assets (331.88) 156.58
(Increase)/ Decrease in financial assets 2.82 (1.88)
(Increase)/ Decrease in non-financial assets 32.46 (20.73)
(Increase)/ Decrease in inventories (748.01) 47.09
Increase/ (Decrease) in trade payables 182.05 (148.76)
Increase/ (Decrease) in financial liabilities 81.70 (45.71)
Increase/ (Decrease) in non-financial liabilities and contract liabilities 10.80 (8.08)
45-141
Increase/ (Decrease) in provisions 69.73 0.11
Cash generated from in operations 933.07 1,066.56
Income tax paid (net of refunds) (272.74) (239.85)
Net Cash flow from Operating Activities (A) 660.33 826.71
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment and intangible assets (249.89) (360.93)
Receipt of grant related to assets 30.90 -
Proceeds from sale of property, plant and equipment 96.32 1.69
Investment in fixed deposits with the bank and financial institution made during the year (729.64) (250.87)
Interest on fixed deposit and investment received 89.46 62.46
Net Cash flow used in Investing Activities (B) (762.85) (547.65)
142-309
C. CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of employee stock purchase plan - share capital 0.02 0.03
Proceeds from exercise of employee stock purchase plan - security premium received 9.80 24.18
Payment of principal portion of lease liabilities (27.19) (28.75)
Payment of interest portion of lease liabilities (9.68) (10.92)
Proceeds from issue of Commercial Paper {Refer 10(C)} 488.25 -
Proceeds from short term borrowing {Refer 10(C)} 500.00 -
Proceeds from long term borrowing 500.00 -
Repayment of short term borrowing {Refer 10(C)} (500.00) -
Repayment of long term borrowing (49.50) (54.00)
233
Consolidated Statement of Cash Flows

(` in crores)
March 31, 2021 March 31, 2020
Repayment of Commercial Paper {Refer 10(C)} (488.25)
Interest paid (45.88) (5.17)
Final Dividend paid to equity shareholders of the Parent Company (including Dividend - (339.50)
Distribution Tax)
Interim Dividend paid to equity shareholders of the Parent Company (including Dividend (187.80) (301.77)
Distribution Tax)
Net Cash flow from Financing Activities (C) 189.77 (715.90)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 87.25 (436.84)
Cash and cash equivalents at the beginning of the year 267.70 704.54
Net foreign exchange differences on cash and cash equivalents held in foreign currency (0.33) -
Cash and Cash Equivalents at the end of the year 354.62 267.70
Notes :
The above Cash flow statement has been prepared under the “Indirect Method” as set out in Indian Accounting Standard-7, “Statement
1
of Cash Flows”.
2 Components of cash and cash equivalents :-
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Cash and cash equivalents
Fixed deposits account with a original maturity of less than three months 296.37 175.35
354.62 267.70
DIN: 00011892 DIN: 00002842
Date: May 20, 2021

Place: Delhi
234
Notes to Consolidated financial statements
Introduction 01-13
1 CORPORATE INFORMATION - Definition of Material – amendments to Ind AS 1

The consolidated financial statements comprise and Ind AS 8
financial statements of Havells India Limited (“”the - Definition of a Business – amendments to Ind AS 103
Parent Company””) and its subsidiaries (collectively,
“”the Group””) for the year ended March 31, 2021. - COVID-19 related concessions – amendments to
Havells India Limited (‘the Parent Company’) is Ind AS 116
a public limited Group domiciled in India and
The amendments did not have any impact on the
incorporated on August 08, 1983 under the provisions
amounts recognised in prior periods and are not
of the Companies Act, 1956 having its registered
expected to significantly affect the current or future
office at 904, 9th Floor, Surya Kiran Building, K.G.
Integrated Report
periods.
Marg, Connaught Place, New Delhi-110001. The
parent company is listed on BSE Limited and National
2.01
Basis of preparation of Consolidated
Stock Exchange of India Limited.
The Group is consumer electrical/electronics and These consolidated financial statements of the Group
power distribution equipment manufacturer with have been prepared in accordance with Indian
products ranging from Industrial and Domestic Accounting Standards (Ind AS) notified under the
Circuit Protection Switchgears, Cables, Motors, Companies (Indian Accounting Standards) Rules,
2015 (as amended from time to time) and presentation
14-44
Pumps, Solar Products, Fans, Power Capacitors, LED
Lamps and Luminaries for Domestic, Commercial requirements of Division II of Schedule III to the
and Industrial applications, Modular Switches, Water Companies Act, 2013, (Ind AS compliant Schedule
Heaters, Coolers and Domestic Appliances, Personal III). These Consolidated financial statements are
Statutory Reports
Grooming, Air Purifier, Water Purifier, Air conditioner, presented in INR and all values are rounded to the
Television, Washing machine and Refrigerator nearest crore (INR 0,000,000), except when otherwise
covering the entire range of household, commercial indicated.
and industrial electrical needs.
The financial statements have been prepared on a
The Group’s manufacturing facilities are located at historical cost convention, except for the following
Faridabad in Haryana, Alwar, Ghiloth and Neemrana assets and liabilities:
in Rajasthan, Haridwar in Uttarakhand, Sahibabad in
i) Certain financial assets and liabilities measured
Uttar Pradesh and Baddi in Himachal Pradesh. The
at fair value
45-141
research and development facilities are located in
Noida (Uttar Pradesh) and Bangalore. ii) Assets held for sale-measured at fair value less
cost to sell
The Group along with its subsidiaries and its joint
venture has been collectively hereinafter referred iii) Defined benefit plans-plan assets measured at
to as “the Group”. These consolidated financial fair value

statements were approved for issue in accordance iv) Share based payments
with a resolution of the directors on May 20, 2021.
2.02 Current versus non-current classification
2 Summary of significant accounting policies
The Group presents assets and liabilities in the balance
This note provides a list of the significant accounting sheet based on current/non- current classification. An
policies adopted in the preparation of these Indian asset is treated as current when it is:
Accounting Standards (Ind-AS) consolidated financial
142-309
statements. These policies have been consistently - Expected to be realised or intended to be sold
applied to all the years except where newly issued or consumed in normal operating cycle
accounting standard is initially adopted. - Held primarily for purpose of trading
New and amended standards adopted by the - Expected to be realized within twelve months
Group after the reporting period, or
The Group has applied the following amendments - cash or cash equivalent unless restricted from
to Ind AS for the first time for their annual reporting being exchanged or used to settle a liability for
period commencing April 01, 2020: at least twelve months after the reporting period.
235

All other assets are classified as non-current. (ii)

Rights arising from other contractual
arrangements
A liability is current when:
(iii) The Group’s voting rights and potential voting
- It is expected to be settled in normal operating
rights
cycle
(iv)
The size of the Group’s holding of voting
- It is held primarily for purpose of trading
rights relative to the size and dispersion of the
- It is due to be settled within twelve months after holdings of the other voting rights holders.
the reporting period, or
The Group re-assesses whether or not it controls an
- There is no unconditional right to defer the investee if facts and circumstances indicate that there
settlement of the liability for at least twelve are changes to one or more of the three elements
months after the reporting period of control. Consolidation of a subsidiary begins
All other liabilities are classified as non current. when the Group obtains control over the subsidiary
and ceases when the Group loses control of the
Deferred tax assets and deferred tax liabilities are subsidiary. Assets, liabilities, income and expenses of
classified as non- current assets and liabilities. a subsidiary acquired or disposed of during the year
are included in the consolidated financial statements
The operating cycle is the time between the acquisition from the date the Group gains control until the date
of assets for processing and their realisation in cash the Group ceases to control the subsidiary.
and cash equivalents. The Group has identified twelve
months as its operating cycle. Consolidated financial statements are prepared using
uniform accounting policies for like transactions and
2.03 Basis of Consolidation other events in similar circumstances. If a member of
The consolidated financial statements comprises the the Group uses accounting policies other than those
financial statement of the Havells India Limited (‘the adopted in the consolidated financial statements for
Parent company’) and subsidiaries (collectively “”the like transactions and events in similar circumstances,
Group) as at March 31, 2021. Control is achieved appropriate adjustments are made to that Group
when the Group is exposed, or has rights, to variable member’s financial statements in preparing the
consolidated financial statements to ensure conformity
returns from its involvement with the investee and has
with the Group’s accounting policies.
the ability to affect those returns through its power
over the investee. Specifically, the Group controls an
The financial statements of all entities used for the
investee if and only if the Group has:
purpose of consolidation are drawn up to same reporting
(i) Power over the investee (i.e. existing rights that date as that of the parent company, i.e., year ended on
give it the current ability to direct the relevant March 31. When the end of the reporting period of the
activities of the investee) parent company is different from that of a subsidiary,
the subsidiary prepares, for consolidation purposes,
(ii) Exposure, or rights, to variable returns from its additional financial information as of the same date
involvement with the investee, and as the financial statements of the parent company to
(iii) The ability to use its power over the investee to enable the parent company to consolidate the financial
affect its returns. information of the subsidiary, unless it is impracticable
to do so or there are no significant transaction or event
Generally, there is a presumption that a majority between the date of those financial statement and date
of voting rights result in control. To support this of financial statement of parent company.
presumption and when the Group has less than a
majority of the voting or similar rights of an investee, the 2.04 Consolidation Procedure :
Group considers all relevant facts and circumstances (A) Subsidiaries:
in assessing whether it has power over an investee, a) Combine like items of assets, liabilities, equity,
including: income, expenses and cash flows of the parent
with those of its subsidiaries. For this purpose,
(i) The contractual arrangement with the other income and expenses of the subsidiary are
vote holders of the investee based on the amounts of the assets and
236
Introduction 01-13
liabilities recognised in the consolidated (vi)

Recognises any surplus or deficit in
financial statements at the acquisition date. profit or loss
(vii)
Reclassifies the parent’s share of
b) Offset (eliminate) the carrying amount of the
components previously recognised in
parent’s investment in each subsidiary and the
OCI to profit or loss or retained earnings,
parent’s portion of equity of each subsidiary.
as appropriate, as would be required if
Business combinations policy explains how to
the group had directly disposed of the
account for any related goodwill.
related assets or liabilities.
c) Eliminate in full intragroup assets and liabilities,
Integrated Report
equity, income, expenses and cash flows (B) Investment in associates and joint ventures
relating to transactions between entities of An associate is an entity over which the Group has
the group (profits or losses resulting from significant influence. Significant influence is the
intragroup transactions that are recognised power to participate in the financial and operating
in assets, such as inventory and fixed assets, policy decisions of the investee, but is not control or
are eliminated in full). Intragroup losses may joint control over those policies.
indicate an impairment that requires recognition
in the consolidated financial statements. Ind A joint venture is a type of joint arrangement whereby
AS - 12 “Income Taxes” applies to temporary the parties that have joint control of the arrangement
14-44
differences that arise from the elimination of have rights to the net assets of the joint venture.
profits and losses resulting from intragroup Joint control is the contractually agreed sharing of
transactions. control of an arrangement, which exists only when
decisions about the relevant activities require
Statutory Reports
Profit or loss and each component of other unanimous consent of the parties sharing control.
comprehensive income (OCI) are attributed to The considerations made in determining whether
the equity holders of the parent of the Group significant influence or joint control are similar to
and to the non-controlling interests, even if this those necessary to determine control over the
results in the non-controlling interests having a subsidiaries.
deficit balance. When necessary, adjustments
are made to the financial statements of The Group’s investments in its associate and joint
subsidiaries to bring their accounting policies venture are accounted for using the equity method.
45-141
into line with the Group’s accounting policies. Under the equity method, the investment in an
All intra-group assets and liabilities, equity, associate or a joint venture is initially recognised
income, expenses and cash flows relating to at cost. The carrying amount of the investment is
transactions between members of the Group adjusted to recognise changes in the Group’s share
are eliminated in full on consolidation.
of net assets of the associate or joint venture since
the acquisition date. Goodwill relating to the associate
A change in the ownership interest of a or joint venture is included in the carrying amount
subsidiary, without a loss of control, is of the investment and is not tested for impairment
accounted for as an equity transaction. If the individually.
Group loses control over a subsidiary, it:
(i)
Derecognises the assets (including The statement of profit and loss reflects the Group’s
goodwill) and liabilities of the subsidiary share of the results of operations of the associate or
joint venture. Any change in OCI of those investees
142-309
(ii)
Derecognises the carrying amount of is presented as part of the Group’s OCI. In addition,
any non-controlling interests when there has been a change recognised directly in
(iii) Derecognises the cumulative translation the equity of the associate or joint venture, the Group
differences recorded in equity recognises its share of any changes, when applicable,
in the statement of changes in equity. Unrealised
(iv)
Recognises the fair value of the
gains and losses resulting from transactions between
consideration received
the Group and the associate or joint venture are
(v)
Recognises the fair value of any eliminated to the extent of the interest in the associate
investment retained or joint venture.
237

If Group’s share of losses of an associate or a joint (C) Business combination and goodwill
venture equals or exceeds its interest in the associate or Business combinations other than those under

joint venture (which includes any long term interest that, common control transactions are accounted for using
in substance, form part of the Group’s net investment in the acquisition method. The cost of an acquisition
the associate or joint venture), the Group discontinues is measured as the aggregate of the consideration
recognising its share of further losses. Additional transferred measured at acquisition date fair value
losses are recognised only to the extent that the Group and the amount of any non-controlling interests in the
has incurred legal or constructive obligations or made acquiree. For each business combination, the Group
payments on behalf of the associate or joint venture. elects whether to measure the non-controlling interests
If the associate or joint venture subsequently reports in the acquiree at fair value or at the proportionate share
profits, the Group resumes recognising its share of of the acquiree’s identifiable net assets. In respect to
those profits only after its share of the profits equals the the business combination for acquisition of subsidiary,
share of losses not recognised. the Group has opted to measure the non-controlling
interests in the acquiree at the proportionate share
The aggregate of the Group’s share of profit or loss of of the acquiree’s identifiable net assets. Acquisition-
an associate and a joint venture is shown on the face related costs are expensed as incurred.
of the statement of profit and loss.
At the acquisition date, the identifiable assets
The financial statements of the associate or joint acquired and the liabilities assumed are recognised
venture are prepared for the same reporting period as at their acquisition date fair values. For this purpose,
the Group. When necessary, adjustments are made to the liabilities assumed include contingent liabilities
bring the accounting policies in line with those of the representing present obligation and they are
Group. measured at their acquisition fair values irrespective
of the fact that outflow of resources embodying
After application of the equity method, the Group economic benefits is not probable. However, the
determines whether it is necessary to recognise an following assets and liabilities acquired in a business
impairment loss on its investment in its associate combination are measured at the basis indicated as
or joint venture. At each reporting date, the Group mentioned hereinafter
determines whether there is objective evidence
that the investment in the associate or joint venture (i)
Deferred tax assets or liabilities, and the
assets or liabilities related to employee benefit
is impaired. If there is such evidence, the Group
arrangements are recognised and measured in
calculates the amount of impairment as the difference
accordance with Ind AS 12 “Income Tax” and
between the recoverable amount of the associate
Ind AS 19 “Employee Benefits” respectively.
or joint venture and its carrying value, and then
recognises the loss as ‘Share of profit of an associate (ii) Potential tax effects of temporary differences
and a joint venture’ in the statement of profit or loss. and carry forwards of an acquiree that exist at
the acquisition date or arise as a result of the
Upon loss of significant influence over the associate acquisition are accounted in accordance with
or joint control over the joint venture, the Group Ind AS 12.
measures and recognises any retained investment
(iii)
Liabilities or equity instruments related to
at its fair value. Any difference between the carrying
share based payment arrangements of
amount of the associate or joint venture upon loss
the acquiree or share – based payments
of significant influence or joint control and the fair
arrangements of the Group entered into to
value of the retained investment less cost to sell is
replace share-based payment arrangements
recognised in profit or loss.
of the acquiree are measured in accordance
with Ind AS 102 “Share-based Payments” at
The Group discontinue the use of equity method from
the acquisition date.
the date the investment is classified as held for sale
in accordance with Ind AS 105 - Non-current Assets (iv) Assets (or disposal groups) that are classified
Held for Sale and Discontinued Operations and as held for sale in accordance with Ind AS
measures the interest in associate and joint venture 105 “”Non-current Assets Held for Sale”” and
held for sale at the lower of its carrying amount and Discontinued Operations are measured in
fair value less cost to sell. accordance with that standard.
238
Introduction 01-13
(v)
Reacquired rights are measured at a value carrying amount of the plant and equipment as a
determined on the basis of the remaining replacement if the recognition criteria are satisfied. All
contractual term of the related contract. Such other repair and maintenance costs are recognised
valuation does not consider potential renewal in profit or loss as incurred. The present value of the
of the reacquired right. expected cost for the decommissioning of an asset
after its use is included in the cost of the respective
When the Group acquires a business, it assesses the asset if the recognition criteria for a provision are met.
financial assets and liabilities assumed for appropriate
classification and designation in accordance with Subsequent costs are included in asset’s carrying
the contractual terms, economic circumstances and amount or recognised as separate assets, as
Integrated Report
pertinent conditions as at the acquisition date. This appropriate, only when it is probable that future
includes the separation of embedded derivatives in economic benefit associated with the item will flow
host contracts by the acquiree. to the Group and the cost of item can be measured
reliably.
If the business combination is achieved in stages,
any previously held equity interest is re-measured An item of property, plant and equipment and any
at its acquisition date fair value and any resulting significant part initially recognised is derecognized
gain or loss is recognised in profit or loss or OCI, as upon disposal or when no future economic benefits
appropriate. are expected from its use or disposal. Any gain or loss
14-44
arising on derecognition of the asset (calculated as
(D) Change in ownership interest the difference between the net disposal proceeds and
The Group treats transaction with non-controlling the carrying amount of the asset) is included in the
interests that do not result in a loss of control as income statement when the asset is derecognised.
Statutory Reports
transaction with the equity owners of the Group. A
change in ownership interest results in adjustment Capital work-in-progress includes cost of property,
between the carrying amounts of the controlling and plant and equipment under installation / under
non-controlling interest to reflect their relative interest development as at the balance sheet date.
in the subsidiary. Any difference between the amount
of the adjustment to non-controlling interests and any The residual values, useful lives and methods of
consideration paid or received is recognised within depreciation of property, plant and equipment are
equity. reviewed at each financial year end and adjusted
45-141
prospectively, if appropriate.
2.05 Property, plant and equipment
Depreciation on property, plant and equipment is
Freehold Land is carried at historical cost. All other
calculated on prorata basis on straight-line method
items of Property, Plant and equipment are stated at
using the useful lives of the assets estimated by
cost, less accumulated depreciation and accumulated
management . The useful life is as follows:
impairment losses, if any. Capital work in progress is
stated at cost, net of accumulated impairment loss, if Assets Useful life (in Years)
any. The historical cost comprises of purchase price, Building 30 and 60
taxes, duties, freight and other incidental expenses
Plant and Equipments 15
directly attributable and related to acquisition and
installation of the concerned assets and are further Moulds and Dies 6
adjusted by the amount of input tax credit availed Furniture and Fixtures 10
142-309
wherever applicable. Vehicles 8 and 10

R &D Equipment's 5 and 15
Such cost includes the cost of replacing part of
the plant and equipment and borrowing costs for Office Equipment's 3 and 5
long-term construction projects if the recognition Mobile Phones 3
criteria are met. When significant parts of plant and Electric Fans and 3 and 10
equipment are required to be replaced at intervals, Installations
the Group depreciates them separately based on Computers 3
their specific useful lives. Likewise, when a major
Laptops 4
inspection is performed, its cost is recognised in the
239

The useful lives have been determined based on The amortization expense on intangible assets with
technical assessment made by management. In finite lives is recognized in the statement of profit and
respect of moulds and dies, mobile phones and loss.
laptops, useful lives are lower than those specified
by schedule II to the Companies Act 2013 and are Intangible assets with indefinite useful lives are not
depreciated over the estimated useful lives of 6 years, amortized, but are tested for impairment annually,
3 years and 4 years respectively, in order to reflect either individually or at the cash-generating unit
the actual usage of assets. The management believes level. The assessment of indefinite life is reviewed
that these estimated useful lives are realistic and annually to determine whether the indefinite life
reflect fair approximation of the period over which the continues to be supportable. If not, the change
assets are likely to be used. The residual values are in useful life from indefinite to finite is made on
not more than 5% of the original cost of the assets. The a prospective basis. The Group has separately
asset’s residual values and useful lives are reviewed, acquired brand. The Group has assessed indefinite
and adjusted if appropriate. life for such brand considering the expected usage,
expected investment on brand, business forecast
Lease hold improvements are depreciated on straight and challenges to establish a premium electronic
line basis over shorter of the asset’s useful life and segment. These are carried at historical cost and
their initial agreement period unless the entity expects tested for impairment annually.
to use the asset beyond the lease term.
An intangible asset is derecognised upon disposal
Leasehold land is amortized on a straight line basis or when no future economic benefits are expected
over the unexpired period of their respective lease from its use or disposal. Gains or losses arising from
ranging from 90-99 years. disposal of the intangible assets are measured as the
difference between the net disposal proceeds and
2.06 Intangible assets the carrying amount of the asset and are recognized
Separately acquired intangible assets in the statement of profit and loss when the assets are
Intangible assets acquired separately are measured disposed off.
on initial recognition at cost. Cost of intangible assets
acquired in business combination is their fair value Intangible assets with finite useful life are amortized
at the date of acquisition. Following initial recognition, on a straight line basis over their estimated useful life
intangible assets are carried at cost less accumulated as under:
amortization and accumulated impairment losses,
Assets Useful life (in years)
if any. Internally generated intangibles, excluding
Computer Software 6
capitalized development cost, are not capitalized and
the related expenditure is reflected in statement of R&D Software 6
profit and loss in the period in which the expenditure is Distributor/ Dealer Network 8
incurred. Cost comprises the purchase price and any Non-Compete Fee 7
attributable cost of bringing the asset to its working Brand and Trademarks Indefinite
condition for its intended use.
Research and development cost
The useful lives of intangible assets are assessed as
Research costs are expensed as incurred.
either finite or indefinite. Intangible assets with finite Development expenditure incurred on an individual
lives are amortized over their useful economic lives project is recognized as an intangible asset when the
and assessed for impairment whenever there is an Group can demonstrate all the following:
indication that the intangible asset may be impaired.
i)
The technical feasibility of completing the
The amortization period and the amortization method
intangible asset so that it will be available for
for an intangible asset with a finite useful life is
use or sale;
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected ii) Its intention to complete the asset;
pattern of consumption of future economic benefits
iii) Its ability to use or sale the asset;
embodied in the asset is accounted for by changing
the amortization period or method, as appropriate, iv) How the asset will generate future economic
and are treated as changes in accounting estimates. benefits;
240
Introduction 01-13
v)
The availability of adequate resources to unit is less than its carrying amount, the impairment
complete the development and to use or sale loss is allocated first to reduce the carrying amount
the asset; and of any goodwill allocated to the unit and then to the
other assets of the unit pro rata based on the carrying
vi) The ability to measure reliably the expenditure
amount of each asset in the unit. Any impairment
attributable to the intangible asset during
loss for goodwill is recognised in profit or loss.
development.
An impairment loss recognised for goodwill is not
reversed in subsequent periods.
Following the initial recognition of the development
expenditure as an asset, the cost model is applied
Where goodwill has been allocated to a cash-
Integrated Report
requiring the asset to be carried at cost less any
generating unit and part of the operation within that
accumulated amortization and accumulated
unit is disposed of, the goodwill associated with the
impairment losses. Amortization of the asset begins
disposed operation is included in the carrying amount
when development is complete and the asset is
of the operation when determining the gain or loss on
available for use. It is amortized on straight line basis
disposal. Goodwill disposed in these circumstances
over the estimated useful life and is recognised in is measured based on the relative values of the
the statement of profit and loss. During the period disposed operation and the portion of the cash-
of development, the asset is tested for impairment generating unit retained.
annually.
14-44
If the initial accounting for a business combination is
Goodwill incomplete by the end of the reporting period in which
Goodwill is initially measured at cost, being the excess the combination occurs, the Group reports provisional
of the aggregate of the consideration transferred over amounts for the items for which the accounting is
Statutory Reports
the fair value of net identifiable assets acquired and incomplete. Those provisional amounts are adjusted
liabilities assumed. If the fair value of the net assets through goodwill during the measurement period,
acquired is in excess of the aggregate consideration or additional assets or liabilities are recognised, to
transferred, the Group re-assesses whether it has reflect new information obtained about facts and
correctly identified all of the assets acquired and all circumstances that existed at the acquisition date
of the liabilities assumed and reviews the procedures that, if known, would have affected the amounts
used to measure the amounts to be recognised at the recognized at that date. These adjustments are
acquisition date. If the reassessment still results in an called as measurement period adjustments. The
45-141
excess of the fair value of net assets acquired over the measurement period does not exceed one year from
aggregate consideration transferred, then the gain the acquisition date.
is recognised in other comprehensive income and
accumulated in equity as capital reserve. However, 2.07 Impairment of non-financial Assets Financial Statements
if there is no clear evidence of bargain purchase, the The Group assesses, at each reporting date, whether
entity recognizes the gain directly in equity as capital there is an indication that an asset may be impaired.
reserve, without routing the same through other If any indication exists, or when annual impairment
comprehensive income. testing for an asset is required, the Group estimates the
asset’s recoverable amount. An asset’s recoverable
After initial recognition, goodwill is measured at cost amount is the higher of an asset’s or cash-generating
less any accumulated impairment losses, if any. For unit’s (CGU) fair value less costs of disposal and its
the purpose of impairment testing, goodwill acquired value in use. The recoverable amount is determined
142-309
in a business combination is, from the acquisition date, for an individual asset, unless the asset does not
allocated to each of the Group’s cash-generating units generate cash inflows that are largely independent
that are expected to benefit from the combination, of those from other assets or groups of assets. When
irrespective of whether other assets or liabilities of the the carrying amount of an asset or CGU exceeds its
acquiree are assigned to those units. recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
A cash generating unit to which goodwill has been
allocated is tested for impairment annually, when In assessing value in use, the estimated future cash
there is an indication that the unit may be impaired. flows are discounted to their present value using a
If the recoverable amount of the cash generating pre-tax discount rate that reflects current market
241

assessments of the time value of money and the Goodwill is tested for impairment annually and when
risks specific to the asset. In determining fair value circumstances indicate that the carrying value may be
less costs of disposal, recent market transactions impaired. Impairment is determined for goodwill by
are taken into account. If no such transactions can assessing the recoverable amount of each CGU (or
be identified, an appropriate valuation model is used. group of CGUs) to which the goodwill relates. When
These calculations are corroborated by valuation the recoverable amount of the CGU is less than its
multiples, quoted share prices for publicly traded carrying amount, an impairment loss is recognised.
companies or other available fair value indicators. Impairment losses relating to goodwill cannot be
reversed in future periods.
The Group bases its impairment calculation on
detailed budgets and forecast calculations, which are Intangible assets with indefinite useful lives are
prepared separately for each of the Group’s CGUs tested for impairment annually as at March 31 at the
to which the individual assets are allocated. These CGU level, as appropriate, and when circumstances
budgets and forecast calculations generally cover a indicate that the carrying value may be impaired.”
period of five years. For longer periods, a long-term
growth rate is calculated and applied to project future 2.08 Financial instruments
cash flows after the fifth year. To estimate cash flow
A financial instrument is any contract that gives rise to
projections beyond periods covered by the most
a financial asset of one entity and a financial liability
recent budgets/forecasts, the Group extrapolates
or equity instrument of another entity.
cash flow projections in the budget using a steady
or declining growth rate for subsequent years, unless (i) Financial Assets
an increasing rate can be justified. In any case, this
The Group classifies its financial assets in the following
growth rate does not exceed the long-term average
measurement categories:
growth rate for the products, industries, or country
or countries in which the Group operates, or for the - Those to be measured subsequently at fair
market in which the asset is used. value (either through other comprehensive
income, or through profit or loss)
Impairment losses of continuing operations, including
impairment on inventories, are recognised in the - Those measured at amortized cost
statement of profit and loss, except for properties
previously revalued with the revaluation surplus
The classification of financial assets at initial
taken to OCI. For such properties, the impairment is recognition depends on the financial asset’s
recognised in OCI up to the amount of any previous contractual cash flow characteristics and the Group’s
revaluation surplus. business model for managing them.
For assets excluding goodwill and intangible assets Initial recognition and measurement
having indefinite life, an assessment is made at With the exception of trade receivables that do not
each reporting date to determine whether there is contain a significant financing component or for
an indication that previously recognised impairment which the Group has applied the practical expedient,
losses no longer exist or have decreased. If such the Group initially measures a financial asset at its
indication exists, the Group estimates the asset’s or fair value plus, in the case of a financial asset not
CGU’s recoverable amount. A previously recognised at fair value through profit or loss, transaction costs.
impairment loss is reversed only if there has been a Trade receivables that do not contain a significant
change in the assumptions used to determine the financing component or for which the Group has
asset’s recoverable amount since the last impairment applied the practical expedient and are measured at
loss was recognised. The reversal is limited so that the transaction price determined under Ind AS 115.
the carrying amount of the asset does not exceed its Refer to the accounting policies in section ‘Revenue
recoverable amount, nor exceed the carrying amount from contracts with customers’.
that would have been determined, net of depreciation,
had no impairment loss been recognised for the asset In order for a financial asset to be classified and
in prior years. Such reversal is recognised in the measured at amortised cost or fair value through
statement of profit and loss unless the asset is carried OCI, it needs to give rise to cash flows that are ‘solely
at a revalued amount, in which case, the reversal is payments of principal and interest (SPPI)’ on the
treated as a revaluation increase. principal amount outstanding. This assessment is
242
Introduction 01-13
referred to as the SPPI test and is performed at an This category is most relevant to the Group. After
instrument level. Financial assets with cash flows that initial measurement, such financial assets are
are not SPPI are classified and measured at fair value subsequently measured at amortized cost using the
through profit or loss, irrespective of the business effective interest rate (EIR) method. Amortised cost
model. is calculated by taking into account any discount or
premium on acquisition and fees or costs that are
The Group’s business model for managing financial an integral part of EIR. EIR is the rate that exactly
assets refers to how it manages its financial assets discounts the estimated future cash receipts over the
in order to generate cash flows. The business model expected life of the financial instrument or a shorter
determines whether cash flows will result from period, where appropriate, to the gross carrying
Integrated Report
collecting contractual cash flows, selling the financial amount of the financial asset. When calculating
assets, or both. the effective interest rate, the Group estimates the
expected cash flows by considering all the contractual
Financial assets classified and measured at amortised terms of the financial instrument but does not consider
cost are held within a business model with the the expected credit losses. The EIR amortization is
objective to hold financial assets in order to collect included in other income in profit or loss. The losses
contractual cash flows while financial assets classified arising from impairment are recognized in the profit
and measured at fair value through OCI are held within or loss. This category generally applies to trade and
a business model with the objective of both holding to other receivables.
14-44
collect contractual cash flows and selling.
Financial assets at fair value through OCI (FVTOCI)
Subsequent measurement (debt instruments)
A ‘financial asset’ is classified as at the FVTOCI if both
Statutory Reports
For purposes of subsequent measurement financial
assets are classified in following categories: of the following criteria are met:
-
Financial assets at amortised cost (debt Business Model Test : The objective of
a)
instruments) financial instrument is achieved by both
collecting contractual cash flows and for selling
- Financial assets at fair value through other
financial assets.
comprehensive income (FVTOCI) with
recycling of cumulative gains and losses (debt Cash flow characteristics Test: The
b)
instruments) contractual terms of the financial asset give rise
45-141
on specific dates to cash flows that are solely
-
payments of principal and interest on principal
through OCI with no recycling of cumulative
amount outstanding.
gains and losses upon derecognition (equity
instruments)
Debt instrument included within the FVTOCI category
- Financial assets at fair value through profit or loss are measured initially as well as at each reporting date
at fair value. Fair value movements are recognized in
Financial assets at amortised cost (debt instruments) the other comprehensive income (OCI), except for
A ‘financial asset’ is measured at the amortised cost if the recognition of interest income, impairment gains
both the following conditions are met: or losses and foreign exchange gains or losses which
are recognized in statement of profit and loss and
a) Business Model Test : The objective is to hold computed in the same manner as for financial assets
measured at amortised cost. The remaining fair value
142-309
the financial asset to collect the contractual

cash flows (rather than to sell the instrument changes are recognised in OCI. Upon derecognition,
prior to its contractual maturity to realize its fair the cumulative fair value changes recognised in OCI
value changes) and; is reclassified from the equity to profit or loss.
Cash flow characteristics Test: The

b) Financial assets at fair value through profit or loss
contractual terms of the financial asset give rise Financial assets at fair value through profit or loss
on specific dates to cash flows that are solely are carried in the balance sheet at fair value with net
payments of principal and interest on principal changes in fair value recognised in the statement
amount outstanding. of profit and loss. This category includes derivative
243

instruments and listed equity investments which - The rights to receive cash flows from the asset
the Group had not irrevocably elected to classify at have expired, or
fair value through OCI. Dividends on listed equity
- the Group has transferred its rights to receive
investments are recognised in the statement of
cash flows from the asset or has assumed an
profit and loss when the right of payment has been
obligation to pay the received cash flows in full
established. without material delay to a third party under a
“pass through” arrangement and either;
Financial assets designated at fair value through
OCI (equity instruments) (a) the Group has transferred substantially
all the risks and rewards of the asset, or
Upon initial recognition, the Group can elect to classify
irrevocably its equity investments as equity instruments (b)
the Group has neither transferred nor
designated at fair value through OCI when they meet retained substantially all the risks and
the definition of equity under Ind AS 32 Financial rewards of the asset, but has transferred
Instruments: Presentation and are not held for trading. control of the asset.
The classification is determined on an instrument-by-
instrument basis. Equity instruments which are held When the Group has transferred its rights to receive
for trading and contingent consideration recognised cash flows from an asset or has entered into a
by an acquirer in a business combination to which Ind pass-through arrangement, it evaluates if and to
AS103 applies are classified as at FVTPL. what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
Gains and losses on these financial assets are never retained substantially all of the risks and rewards of
recycled to profit or loss. Dividends are recognised as the asset, nor transferred control of the asset, the
other income in the statement of profit and loss when Group continues to recognise the transferred asset to
the right of payment has been established, except the extent of the Group’s continuing involvement. In
when the Group benefits from such proceeds as a that case, the Group also recognises an associated
recovery of part of the cost of the financial asset, in liability. The transferred asset and the associated
which case, such gains are recorded in OCI. Equity liability are measured on a basis that reflects the
instruments designated at fair value through OCI are rights and obligations that the Group has retained.
not subject to impairment assessment.
Continuing involvement that takes the form of a
Embedded Derivatives guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
A derivative embedded in a hybrid contract, with a
and the maximum amount of consideration that the
financial liability or non-financial host, is separated from
group could be required to repay.
the host and accounted for as a separate derivative if:
the economic characteristics and risks are not closely Impairment of financial assets
related to the host; a separate instrument with the
In accordance with IND AS 109, the Group applies
same terms as the embedded derivative would meet
expected credit losses(ECL) model for measurement
the definition of a derivative; and the hybrid contract
and recognition of impairment loss on the following
is not measured at fair value through profit or loss.
financial asset and credit risk exposure
Embedded derivatives are measured at fair value
with changes in fair value recognised in profit or loss. - Financial assets measured at amortised cost;
Reassessment only occurs if there is either a change
- Financial assets measured at fair value through
in the terms of the contract that significantly modifies
other comprehensive income (FVTOCI);
the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value ECLs are based on the difference between the
through profit or loss category. contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects
Derecognition to receive, discounted at an approximation of the
A financial asset (or, where applicable, a part of a original effective interest rate. The expected cash
financial asset or part of a Group of similar financial flows will include cash flows from the sale of collateral
assets) is primarily derecognised (i.e. removed from held or other credit enhancements that are integral to
the Group’s statement of financial position) when: the contractual terms.
244
Introduction 01-13
ECLs are recognised in two stages. For credit (c) ebt instruments measured at FVTOCI:
D
exposures for which there has not been a significant For debt instruments measured at FVTOCI,
increase in credit risk since initial recognition, ECLs the expected credit losses do not reduce the
are provided for credit losses that result from default carrying amount in the balance sheet, which
events that are possible within the next 12-months (a remains at fair value. Instead, an amount
12-month ECL). For those credit exposures for which equal to the allowance that would arise if the
there has been a significant increase in credit risk asset was measured at amortised cost is
since initial recognition, a loss allowance is required recognised in other comprehensive income as
for credit losses expected over the remaining life of the accumulated impairment amount.
the exposure, irrespective of the timing of the default
Integrated Report
(a lifetime ECL). (ii) Financial liabilities
Initial recognition and measurement

The Group follows “simplified approach” for Financial liabilities are classified at initial recognition
recognition of impairment loss allowance on: as financial liabilities at fair value through profit or
-
Trade receivables or contract revenue loss, loans and borrowings, and payables, net of
receivables; directly attributable transaction costs. All financial
liabilities are recognised initially at fair value and, in
-
All lease receivables resulting from the the case of loans and borrowings and payables, net
transactions within the scope of Ind AS 116-
14-44
of directly attributable transaction costs. The Group
Leases financial liabilities include loans and borrowings, trade
payables, trade deposits, retention money, liabilities
Under the simplified approach, the Group does not towards services, sales incentive and other payables.
track changes in credit risk. Rather, it recognizes
Statutory Reports
impairment loss allowance based on lifetime ECLs at Subsequent measurement
each reporting date, right from its initial recognition. The
For purposes of subsequent measurement, financial
Group uses a provision matrix to determine impairment
liabilities are classified in two categories:
loss allowance on the portfolio of trade receivables. The
provision matrix is based on its historically observed (i) Financial liabilities at fair value through profit or
default rates over the expected life of trade receivable loss
and is adjusted for forward looking estimates. At every (ii) Financial liabilities at amortised cost (loans and
reporting date, the historical observed default rates are borrowings)
45-141
updated and changes in the forward looking estimates
are analysed. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss

ECL impairment loss allowance (or reversal)
include financial liabilities held for trading and financial
recognized during the period is recognized as
liabilities designated upon initial recognition as at fair
income/ expense in the statement of profit and
value through profit or loss. Financial liabilities are
loss. This amount is reflected under the head ‘other
classified as held for trading if they are incurred for
expenses’ in the statement of profit and loss. The
the purpose of repurchasing in the near term. This
balance sheet presentation for various financial
category also includes derivative financial instruments
instruments is described below:
entered into by the Group that are not designated as
(a) inancial assets measured as at amortised
F hedging instruments in hedge relationship as defined
cost: ECL is presented as an allowance, i.e., by Ind AS 109. The separated embedded derivate
142-309
as an integral part of the measurement of those are also classified as held for trading unless they are
assets in the balance sheet. The allowance designated as effective hedging instruments.
reduces the net carrying amount. Until the
Gains or losses on liabilities held for trading are
asset meets write-off criteria, the group does
recognised in the statement of profit and loss.
not reduce impairment allowance from the
gross carrying amount.
Financial liabilities designated upon initial recognition
(b) oan commitments and financial guarantee
L at fair value through profit or loss are designated
contracts: ECL is presented as a provision in as such at the initial date of recognition, and
the balance sheet, i.e. as a liability. only if the criteria in IND AS 109 are satisfied. For
245

liabilities designated as FVTPL, fair value gains/ expires. When an existing financial liability is replaced
losses attributable to changes in own credit risk by another from the same lender on substantially
are recognized in OCI. These gains/loss are not different terms, or the terms of an existing liability
subsequently transferred to profit and loss. However, are substantially modified, such an exchange or
the Group may transfer the cumulative gain or loss modification is treated as the derecognition of the
within equity. All other changes in fair value of such original liability and the recognition of a new liability.
liability are recognized in the statement of profit or The difference in the respective carrying amounts is
loss. the Group has not designated any financial recognized in the statement of profit and loss.
liability as at fair value through profit and loss.
Offsetting of financial instruments
Financial liabilities at amortised cost (Loans and
Financials assets and financial liabilities are offset
borrowings)
and the net amount is reported in the balance sheet
After initial recognition, interest-bearing borrowings if there is a currently enforceable legal right to offset
are subsequently measured at amortized cost using the recognized amounts and there is an intention to
the Effective interest rate method. Gains and losses settle on a net basis, to realize the assets and settle
are recognized in profit or loss when the liabilities
the liabilities simultaneously.
are derecognised as well as through the Effective
interest rate amortization process. Amortized cost
Reclassification of financial assets/ financial
is calculated by taking into account any discount or liabilities
premium on acquisition and fees or costs that are an
The Group determines classification of financial
integral part of the Effective interest rate. The Effective
assets and liabilities on initial recognition. After
interest rate amortization is included as finance costs
initial recognition, no reclassification is made for
in the statement of profit and loss.
financial assets which are equity instruments and
Trade and other payables financial liabilities. For financial assets which are
These amounts represents liabilities for goods and debt instruments, a reclassification is made only
services provided to the Group prior to the end of if there is a change in the business model for
financial year which are unpaid. The amounts are managing those assets. Changes to the business
unsecured and are usually paid as per the term of model are expected to be infrequent. The Group’s
contract with suppliers. Trade and other payables are senior management determines change in the
presented as current liabilities unless payment is not business model as a result of external or internal
due within 12 months after the reporting period. They changes which are significant to the Group’s
are recognized initially at fair value and subsequently operations. Such changes are evident to external
measured at amortized cost using effective interest parties. A change in the business model occurs
rate method. when the Group either begins or ceases to perform
an activity that is significant to its operations. If
Financial guarantee contracts the Group reclassifies financial assets, it applies
the reclassification prospectively from the
Financial guarantee contracts issued by the Group
are those contracts that require a payment to be made reclassification date which is the first day of the
to reimburse the holder for a loss it incurs because the immediately next reporting period following the
specified debtor fails to make a payment when due change in business model. The Group does not
in accordance with the terms of a debt instrument. restate any previously recognised gains, losses
Financial guarantee contracts are recognized initially (including impairment gains or losses) or interest.
as a liability at fair value, adjusted for transaction costs
that are directly attributable to the issuance of the
2.09
Derivative financial instruments and hedge
guarantee. Subsequently, the liability is measured at accounting
the higher of the amount of loss allowance determined Initial recognition and subsequent measurement
as per impairment requirements of IND AS 109 and Derivative financial instruments are initially recognised
the amount recognized less cumulative amortization. at fair value on the date on which a derivative contract
is entered into and are subsequently re-measured
Derecognition at fair value. Derivatives are carried as financial
A financial liability is derecognised when the obligation assets when the fair value is positive and as financial
under the liability is discharged or cancelled or liabilities when the fair value is negative.
246
Introduction 01-13
The purchase contracts that meet the definition of If the hedged item is derecognised, the unamortised
a derivative under Ind AS 109 are recognised in the fair value is recognised immediately in profit or loss.
statement of profit and loss. Commodity contracts that When an unrecognised firm commitment is designated
are entered into and continue to be held for the purpose as a hedged item, the subsequent cumulative change
of the receipt or delivery of a non-financial item in in the fair value of the firm commitment attributable to
accordance with the Group’s expected purchase, sale the hedged risk is recognised as an asset or liability
or usage requirements are held at cost. with a corresponding gain or loss recognised in profit
and loss.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to profit or loss, (ii) Cash flow hedges
Integrated Report
except for the effective portion of cash flow hedges,
The effective portion of the gain or loss on the
which is recognised in OCI and later reclassified to
hedging instrument is recognised in OCI in the cash
profit or loss when the hedge item affects profit or loss
flow hedge reserve, while any ineffective portion is
or treated as basis adjustment if a hedged forecast
recognised immediately in the statement of profit and
transaction subsequently results in the recognition of
loss.
a non-financial asset or non-financial liability.
The ineffective portion relating to foreign currency
For the purpose of hedge accounting, hedges are
contracts is recognised in finance costs and the
classified as:
14-44
ineffective portion relating to commodity contracts is
(i) Fair value hedges when hedging the exposure recognised in other income or expenses.
to changes in the fair value of a recognised
asset or liability or an unrecognised firm Amounts recognised as OCI are transferred to profit
Statutory Reports
commitment. or loss when the hedged transaction affects profit or
loss, such as when the hedged financial income or
(ii) Cash flow hedges when hedging the exposure
financial expense is recognised or when a forecast
to variability in cash flows that is either
sale occurs. When the hedged item is the cost of
attributable to a particular risk associated with a
a non-financial asset or non-financial liability, the
recognised asset or liability or a highly probable
amounts recognised as OCI are transferred to the
forecast transaction or the foreign currency risk
initial carrying amount of the non-financial asset or
in an unrecognised firm commitment.
liability.
(iii)
Hedges of a net investment in a foreign
45-141
operation. If the hedging instrument expires or is sold, terminated
or exercised without replacement or rollover (as part of
Hedges that meet the strict criteria for hedge
the hedging strategy), or if its designation as a hedge
accounting are accounted for, as described below:
is revoked, or when the hedge no longer meets the Financial Statements
criteria for hedge accounting, any cumulative gain or

(i) Fair value hedges
loss previously recognised in OCI remains separately
The change in the fair value of a hedging instrument in equity until the forecast transaction occurs or the
is recognised in the statement of profit and loss foreign currency firm commitment is met.
as finance costs. The change in the fair value of
the hedged item attributable to the risk hedged is 2.10 Inventories
recorded as part of the carrying value of the hedged
(a) Basis of valuation
item and is also recognised in the statement of profit
i) Inventories other than scrap materials are
142-309
and loss as finance costs.

valued at lower of cost and net realizable value
For fair value hedges relating to items carried at after providing cost of obsolescence, if any.
amortised cost, any adjustment to carrying value is However, materials and other items held for use
amortised through profit or loss over the remaining in the production of inventories are not written
term of the hedge using the EIR method. EIR down below cost unless the finished products
amortization may begin as soon as an adjustment in which they will be incorporated are expected
exists and no later than when the hedged item ceases to be sold at or above cost. The comparison
to be adjusted for changes in its fair value attributable of cost and net realizable value is made on an
to the risk being hedged. item-by-item basis.
247

ii) Inventory of scrap materials have been valued ii)

An active programme to locate a buyer
at net realizable value. and complete the plan has been initiated (if
applicable)
b) Method of Valuation
iii) The asset is being actively marketed for sale
i) Cost of raw materials has been determined
at a price that is reasonable in relation to its
by using moving weighted average cost
current fair value,
method and comprises all costs of purchase,
duties, taxes (other than those subsequently iv) The sale is expected to qualify for recognition
recoverable from tax authorities) and all other as a completed sale within one year from the
costs incurred in bringing the inventories to date of classification, and
their present location and condition.
v) Actions required to complete the plan indicate
ii) Cost of finished goods and work-in-progress
that it is unlikely that significant changes to
includes direct labour and an appropriate share
the plan will be made or that the plan will be
of fixed and variable production overheads.
withdrawn.
Fixed production overheads are allocated on
the basis of normal capacity of production
The criteria for held for sale classification is regarded
facilities. Cost is determined on moving
as met only when the sale is highly probable and the
weighted average basis.
asset is available for immediate sale in its present
iii) Cost of traded goods has been determined condition and the assets must have actively marketed
by using moving weighted average cost for sale at a price that is reasonable in relation to its
method and comprises all costs of purchase, current fair value. Actions required to complete the
duties, taxes (other than those subsequently sale should indicate that it is unlikely that significant
recoverable from tax authorities) and all other changes to the plan to sale these assets will be
costs incurred in bringing the inventories to made. Management must be committed to the sale,
their present location and condition. which should be expected to qualify for recognition
as a completed sale within one year from the date of
iv) Net realizable value is the estimated selling
classification.
price in the ordinary course of business, less
estimated costs of completion and estimated
Property, plant and equipment and intangible assets
costs necessary to make the sale.
once classified as held for sale are not depreciated or
2.11 Non-current assets held for sale amortized. Assets and liabilities classified as held for
sale are presented separately as current items in the
The Group classifies non-current assets as held
balance sheet.
for sale if their carrying amounts will be recovered
principally through a sale rather than through 2.12 Income Tax
continuing use and the sale is considered highly
The income tax expense or credit for the period is the
probable. Such non-current assets classified as held
tax payable on the current period’s taxable income
for sale are measured at the lower of their carrying
based on the applicable income tax rate adjusted
amount and fair value less costs to sell . Any expected
by changes in deferred tax assets and liabilities
loss is recognized immediately in the statement of
attributable to temporary differences and to unused
profit and loss.
tax losses. Income Tax expense for the year comprises
The criteria for held for sale classification is regarded of current tax and deferred tax.
as met only when the assets is available for immediate
sale in its present condition, subject only to terms that a) Current Income Tax
are usual and customary for sales of such assets, its Current income tax, assets and liabilities are measured
sale is highly probable; and it will genuinely be sold, at the amount expected to be paid to or recovered
not abandoned. The Group treats sale of the asset to from the taxation authorities in accordance with the
be highly probable when: Income Tax Act, 1961 and the Income Computation
and Disclosure Standards (ICDS) enacted in India by
i)
The appropriate level of management is using tax rates and the tax laws that are enacted at
committed to a plan to sell the asset the reporting date.
248
Introduction 01-13
The current income tax charge is calculated on forward of unused tax credits and unused tax losses
the basis of the tax laws enacted or substantively can be utilised, except:
enacted at the end of the reporting period in the
i) When the deferred tax asset relating to the
countries where the Group and its subsidiaries and
deductible temporary difference arises from
associates operate and generate taxable income.
the initial recognition of an asset or liability in a
Management periodically evaluates positions taken
transaction that is not a business combination
in tax returns with respect to situations in which
and, at the time of the transaction, affects neither
applicable tax regulation is subject to interpretation
the accounting profit nor taxable profit or loss.
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The ii) In respect of deductible temporary differences
Integrated Report
Group measures its tax balances either based on the associated with investments in subsidiaries,
most likely amount or the expected value, depending associates and interests in joint ventures,
on which method provides a better prediction of the deferred tax assets are recognised only to the
resolution of the uncertainty. extent that it is probable that the temporary
differences will reverse in the foreseeable
Current income tax relating to item recognized outside future and taxable profit will be available
the statement of profit and loss is recognized outside against which the temporary differences can
profit or loss (either in other comprehensive income or be utilised.
equity).Current tax items are recognized in correlation
14-44
to the underlying transactions either in OCI or directly The carrying amount of deferred tax assets is reviewed
in equity. at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit
b) Deferred Tax will be available to allow all or part of the deferred tax
Statutory Reports
Deferred tax is provided in full using the liability asset to be utilized. Unrecognized deferred tax assets
method on temporary differences arising between the are re-assessed at each reporting date and are
tax bases of assets and liabilities and their carrying recognized to the extent that it has become probable
amounts in the financial statements. However, that future taxable profits will allow the deferred tax
deferred tax liabilities are not recognised if they arise asset to be recovered.
from the initial recognition of goodwill.
Deferred tax assets and liabilities are measured at the
Deferred tax liabilities are recognised for all taxable tax rates that are expected to apply in the year when
45-141
temporary differences, except: the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
i) When the deferred tax liability arises from the
substantively enacted at the reporting date.
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
Deferred tax relating to items recognized outside the
combination and, at the time of the transaction,
statement of profit and loss is recognized outside
affects neither the accounting profit nor taxable
the statement of profit and loss (either in other
profit or loss.
comprehensive income or in equity). Deferred tax
ii) In respect of taxable temporary differences items are recognized in correlation to the underlying
associated with investments in subsidiaries, transaction either in OCI or direct in equity.
associates and interests in joint ventures, when
the timing of the reversal of the temporary Tax benefits acquired as part of a business
142-309
differences can be controlled and it is probable combination, but not satisfying the criteria for separate
that the temporary differences will not reverse recognition at that date, are recognised subsequently
in the foreseeable future. if new information about facts and circumstances
change. Acquired deferred tax benefits recognised
Deferred tax assets are recognised for all deductible within the measurement period reduce goodwill
temporary differences, the carry forward of unused related to that acquisition if they result from new
tax credits and any unused tax losses. Deferred tax information obtained about facts and circumstances
assets are recognised to the extent that it is probable existing at the acquisition date. If the carrying amount
that taxable profit will be available against which of goodwill is zero, any remaining deferred tax benefits
the deductible temporary differences, and the carry are recognised in OCI/ capital reserve depending on
249

the principle explained for bargain purchase gains. All the customer. The variable consideration is estimated
other acquired tax benefits realized are recognised in at contract inception and constrained until it is
profit or loss. highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised will
2.13 Revenue from contract with customers not occur when the associated uncertainty with the
The Group manufactures/ trades and sells a range variable consideration is subsequently resolved. The
of consumer electrical and electronic products. Group operates several sales incentive programmes
Revenue from contracts with customers involving wherein the customers are eligible for several
sale of these products is recognized at a point in time benefits on achievement of underlying conditions as
when control of the product has been transferred, and prescribed in the scheme programme such as credit
there are no unfulfilled obligation that could affect the notes, reimbursement, investments etc. Revenue from
customer’s acceptance of the products which usually contract with customer is presented after deducting
happen on delivery of goods. Delivery occurs when cost of all these schemes.
the products are shipped to specific location and
control has been transferred to the customers. The (ii) Warranty obligations
Group also provides installation, annual maintenance The Group generally provides for warranties for
and warranty services that are either sold separately general repair of defects. These warranties are
or bundled together with the sale of goods. The assurance-type warranties under Ind AS 115, which
Group recognizes these service revenue from sales of are accounted for under Ind AS 37 (Provisions,
services over a period of time, because the customer Contingent Liabilities and Contingent Assets),
simultaneously receives and consumes the benefits consistent with its current practice. However, in
provided by the Group. The Group has objective certain non-standard contracts in respect of sale
evidence that all criterion for acceptance has been of consumer durable goods, the Group provides
satisfied. A receivable is recognised when the control extended warranties and such warranties are termed
of the product is transferred as the consideration as service-type warranties and therefore, accounted
is unconditional and payment becomes due upon for as separate performance obligations to which the
passage of time as per the terms of contract with Group allocates a portion of the transaction price.
customers. Revenue from service-type warranties is recognised
over the period in which the service is provided based
(a) Sale of goods on the time elapsed.
Revenue from sale of goods is recognised at the point
in time when control of the goods is transferred to (iii) Significant Financing Components
the customer, generally on delivery of the goods and In respect of short-term advances from its customers,
there are no unfulfilled obligations. using the practical expedient in Ind AS 115, the Group
does not adjust the promised amount of consideration
The Group considers, whether there are other for the effects of a significant financing component
promises in the contract in which their are separate if it expects, at contract inception, that the period
performance obligations, to which a portion of the between the transfer of the promised good or service
transaction price needs to be allocated. In determining to the customer and when the customer pays for that
the transaction price for the sale of goods, the good or service will be within normal operating cycle.
Group allocates a portion of the transaction price to In respect of long term contracts, the transaction price
different performance obligations bases on its relative for these contracts is discounted, using the interest
standalone prices and also considers the following:- rate implicit in the contract (i.e., the interest rate that
discounts the cash selling price of the equipment to
(i) Variable consideration the amount paid in advance).
The Group recognizes revenue from the sale of goods
measured at the fair value of the consideration received (b) Sale of service
or receivable, net of returns and allowances, trade The Group provides installation, annual maintenance
discounts and volume rebates. If the consideration and extended warranty services that are either sold
in a contract includes a variable amount, the Group separately or bundled together with the sale of
estimates the amount of consideration to which it will goods. Contracts for bundled sales of equipment
be entitled in exchange for transferring the goods to and installation services are comprised of two
250
Introduction 01-13
performance obligations because the equipment and or receipts over the expected life of the financial
installation services are both sold on a stand-alone instrument or a shorter period, where appropriate,
basis and are distinct within the context of contract. to the gross carrying amount of the financial asset
Accordingly, the Group allocates the transaction or to the amortised cost of a financial liability. When
price based on the relative stand-alone selling prices calculating the effective interest rate, the Group
of the equipment and installation services The Group estimates the expected cash flows by considering
recognizes revenue from sales of services over all the contractual terms of the financial instrument
time, because the customer simultaneously receives (for example, prepayment, extension, call and similar
and consumes the benefits provided by the Group. options) but does not consider the expected credit
Revenue from services related activities is recognised losses. Interest income is included in other income in
Integrated Report
as and when services are rendered and on the basis the statement of profit and loss.
of contractual terms with the parties.
2.15 Others operating income

(c) Contract balances
(a) Export benefit
A contract asset is the right to consideration in
exchange for goods or services transferred to Revenue from export benefits arising from Duty
the customer. Contract assets are in the nature of entitlement pass book (DEPB scheme), duty drawback
unbilled receivables, which arises when Group scheme, merchandise export incentive scheme are
satisfies a performance obligation but does not recognised on export of goods in accordance with
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have an unconditional rights to consideration. A their respective underlying scheme at fair value of
receivables represents the Group’s right to an amount consideration received or receivable.
of consideration that is unconditional. Contract assets
Statutory Reports
are subject to impairment assessment. Refer to (b) Government Grants
accounting policies on impairment of financial assets
Government Grants are recognized at their fair value
in section (Financial instruments – initial recognition
when there is reasonable assurance that the grant will
and subsequent measurement).
be received and all the attached conditions will be
A contract liability is the obligation to transfer goods or complied with.
services to a customer for which the Group has received
consideration (or an amount of consideration is due) When the grant relates to an expense item, it is
from the customer. If a customer pays consideration recognized as income on a systematic basis over the
45-141
before the Group transfers goods or services to the periods that the related costs, for which it is intended
customer, a contract liability is recognised when the to compensate, are expensed. Government grant
payment is made or the payment is due (whichever is related to the non-monetary asset are recognised at
earlier). Contract liabilities are recognised as revenue nominal value and presented by deducting the same Financial Statements
when the Group performs under the contract (i.e., from carrying amount of related asset and the grant
transfers control of the related goods or services to is then recognised in profit or loss over the useful
the customer). life of the depreciable asset by way of a reduced
depreciation charge.
A trade receivable is recognised if an amount of
consideration that is unconditional (i.e., only the
passage of time is required before payment of the
2.16 Retirement and other employee benefits
consideration is due). Refer to accounting policies i) Short-term obligations
of financial assets in section (Financial instruments – Liabilities for wages and salaries, including non
142-309
initial recognition and subsequent measurement). monetary benefits that are expected to be settled
wholly within twelve months after the end of the
2.14 Other Income period in which the employees render the related
(a) Interest Income service are recognized in respect of employee
For all debt instruments measured either at amortised service upto the end of the reporting period and
cost or at fair value through other comprehensive are measured at the amount expected to be paid
income, interest income is recorded using the when the liabilities are settled. The liabilities are
effective interest rate (EIR). EIR is the rate that exactly presented as current employee benefit obligations
discounts the estimated future cash payments in the balance sheet.
251

(ii) Other long-term employee benefit obligations contribution already paid. If the contribution
a) Gratuity already paid exceeds the contribution due for
services received before the balance sheet
The Employee’s Gratuity Fund Scheme, which
date, then excesses recognized as an asset
is defined benefit plan, is managed by Trust
with its investments maintained with Bajaj to the extent that the prepayment will lead to,
Allianz Life Insurance Co. Ltd. The liabilities for example, a reduction in future payment or
with respect to Gratuity Plan are determined a cash refund.
by actuarial valuation on projected unit credit
method on the balance sheet date, based upon c) Other employee benefits
which the Group contributes to the Gratuity The parent company (‘’Havells India Limited”)
Scheme. The difference, if any, between the provides long term incentive plan to employees
actuarial valuation of the gratuity of employees via equity settled share based payments as
at the year end and the balance of funds is enumerated below:
provided for as assets/ (liability) in the books.
Net interest is calculated by applying the (i)
Havells Employee Long Term
discount rate to the net defined benefit liability Incentive Plan: The fair value of
or asset. The Group recognizes the following options granted under this option
changes in the net defined benefit obligation plan is recognised as an employee
under Employee benefit expense in statement benefit expense with corresponding
of profit or loss: increase in equity in accordance
with recognition and measurement
a) Service costs comprising current service
principles as prescribed in Ind AS 102
costs, past-service costs, gains and
Share Based Payments when grant is
losses on curtailments and non-routine
made. The total expense is recognised
settlements
over the vesting period, which is the
b) Net interest expense or income period over which all of the specified
Remeasurements, comprising of actuarial vesting conditions are to be satisfied.
gains and losses, the effect of the asset ceiling, At end of the reporting period, the
excluding amounts included in net interest on entity revises its estimates of the
the net defined benefit liability and the return number of options that are expected to
on plan assets (excluding amounts included in vest based on the non-market vesting
net interest on the net defined benefit liability), and service conditions. It recognizes
are recognized immediately in the Balance the impact of the revision to original
Sheet with a corresponding debit or credit to estimates, if any, in profit or loss, with
retained earnings through other comprehensive corresponding adjustment to equity.
income in the period in which they occur.
Remeasurements are not reclassified to profit (ii) avells Employee Stock Purchase
H
or loss in subsequent periods. Plan: These are in nature of employee
benefit wherein employees (including
b) Provident Fund senior executives) of the Group purchase
Retirement benefit in the form of provident shares of the Group at fair value on the
fund is a defined contribution scheme. grant cum allotment date and receives
the Group has no obligation, other than remuneration in the form of ex-gratia
the contribution payable to the provident equivalent to predefined percentage
fund. The Group recognizes contribution of purchase price paid by designated
payable through provident fund scheme as employee subject to serving of relevant
an expense, when an employee renders the period of service after the grant cum
related services. If the contribution payable allotment date. These are recognised at
to scheme for service received before the fair value of shares granted and allotted
balance sheet date exceeds the contribution as employee benefit expense over the
already paid, the deficit payable to the scheme period of employee serving relevant
is recognized as liability after deducting the period.
252
Introduction 01-13
2.17 Leases ii) Lease Liabilities

The Group assesses at contract inception whether At the commencement date of the lease, the
a contract is, or contains, a lease. That is, if the Group recognises lease liabilities measured at
contract conveys the right to control the use of an the present value of lease payments to be made
identified asset for a period of time in exchange for over the lease term. The lease payments include
consideration. fixed payments (including in substance fixed
payments) less any lease incentives receivable,
Group as a lessee variable lease payments that depend on an
index or a rate, and amounts expected to be
The Group’s lease asset classes primarily comprise
paid under residual value guarantees. The
Integrated Report
of lease for land and building. The Group applies
lease payments also include the exercise price
a single recognition and measurement approach for
of a purchase option reasonably certain to
all leases, except for short-term leases and leases
be exercised by the Group and payments of
of low-value assets. The Group recognises lease
penalties for terminating the lease, if the lease
liabilities to make lease payments and right-of-use
term reflects the Group exercising the option to
assets representing the right to use the underlying
terminate. Variable lease payments that do not
assets. As practical expedient of Ind AS 116 “Leases”, depend on an index or a rate are recognised as
the Group has considered Covid-19-related rent expenses (unless they are incurred to produce
concessions not to be lease modification, hence inventories) in the period in which the event or
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the income towards rent concession is recognised condition that triggers the payment occurs.
in “Other Income” in the statement of profit and loss
account. In calculating the present value of lease payments,
the Group uses its incremental borrowing rate
Statutory Reports
i) Right-of-use assets (ROU) at the lease commencement date because the
The Group recognises right-of-use assets at interest rate implicit in the lease is not readily
the commencement date of the lease (i.e., the determinable. After the commencement date, the
date the underlying asset is available for use). amount of lease liabilities is increased to reflect
Right-of-use assets are measured at cost, less the accretion of interest and reduced for the
any accumulated depreciation and impairment lease payments made. In addition, the carrying
losses, and adjusted for any remeasurement amount of lease liabilities is remeasured if there
of lease liabilities. The cost of right-of-use is a modification, a change in the lease term, a
45-141
assets includes the amount of lease liabilities change in the lease payments (e.g., changes
recognised, initial direct costs incurred, to future payments resulting from a change in
and lease payments made at or before the an index or rate used to determine such lease
payments) or a change in the assessment of an
commencement date less any lease incentives Financial Statements
option to purchase the underlying asset.
received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the
Lease payments are allocated between
lease term and the estimated useful lives of the
principal and finance cost. The finance cost is
building (i.e. 30 and 60 years)
charged to profit or loss over the lease period
so as to produce a constant periodic rate of
If ownership of the leased asset transfers to interest on the remaining balance of the liability
the Group at the end of the lease term or the for each period.
cost reflects the exercise of a purchase option,
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depreciation is calculated using the estimated Variable lease payments that depend on sales
useful life of the asset. The right-of-use assets are recognised in profit or loss in the period
are also subject to impairment. Refer to the in which the condition that triggers those
accounting policies in section ‘Impairment of payments occurs.
non-financial assets’.
(iii) Short-term leases and leases of low-value
The Group classifies ROU assets as part of assets
Property plant and equipment in Balance Sheet The Group applies the short-term lease
and lease liability in “Financial Liability”. recognition exemption to its short-term leases
253

(i.e., those leases that have a lease term of 12 2.19 Earnings Per Share
months or less from the commencement date Basic earnings per share are calculated by dividing
and do not contain a purchase option). It also the net profit or loss for the period attributable to equity
applies the lease of low-value assets recognition shareholders by the weighted average number of equity
exemption to leases that are considered to shares outstanding during the period. The weighted
be low value. Lease payments on short-term average number of equity shares outstanding during
leases and leases of low-value assets are the period is adjusted for events such as bonus issue,
recognised as expense on a straight-line basis bonus element in a rights issue, share split, and reverse
over the lease term.
share split (consolidation of shares) if any that have
changed the number of equity shares outstanding,
2.18 Segment Reporting
without a corresponding change in resources.
Operating segments are reported in a manner
consistent with the internal reporting provided to the For the purpose of calculating diluted earnings per
chief operating decision maker. The Board of directors share, the net profit or loss for the period attributable to
monitors the operating results of all product segments equity shareholders and the weighted average number
separately for the purpose of making decisions about of shares outstanding during the period are adjusted
resource allocation and performance assessment. for the effect of all potentially dilutive equity shares.
Segment performance is evaluated based on profit
and loss and is measured consistently with profit and 2.20 Borrowing Costs
loss in the financial statements.
Borrowing cost includes interest and other costs
incurred in connection with the borrowing of funds
The operating segments have been identified on the
and charged to Statement of Profit & Loss on the basis
basis of the nature of products/services. Further:
of effective interest rate (EIR) method. Borrowing cost
1 Segment revenue includes sales and other also includes exchange differences to the extent
income directly identifiable with / allocable to regarded as an adjustment to the borrowing cost.
the segment including inter - segment revenue.
Borrowing costs directly attributable to the acquisition,
2 Expenses that are directly identifiable with
construction or production of an asset that necessarily
/ allocable to segments are considered for
takes a substantial period of time to get ready for its
determining the segment result. Expenses
intended use or sale are capitalized as part of the
which relate to the Group as a whole and not
cost of the respective asset. All other borrowing costs
allocable to segments are included under
are recognized as expense in the period in which they
unallocable expenditure.
occur.
3 Income which relates to the Group as a whole
and not allocable to segments is included in 2.21 Cash and Cash Equivalents
unallocable income. Cash and cash equivalent in the balance sheet
4 Segment results includes margins on inter- comprise cash at banks and on hand and short-term
segment sales which are reduced in arriving at deposits with an original maturity of three months or
the profit before tax of the Group. less, that are readily convertible to a known amount of
cash and subject to an insignificant risk of changes in
5 Segment assets and liabilities include those
value.
directly identifiable with the respective
segments. Unallocable assets and liabilities
For the purpose of presentation in the statement of
represent the assets and liabilities that relate to
cash flows, cash and cash equivalents includes cash
the Group as a whole and not allocable to any
on hand, deposit held at call with financial institutions,
segment.
other short - term, highly liquid investments with
6 Segment revenue resulting from transactions original maturities of three months or less that are
with other business segments is accounted readily convertible to known amounts of cash and
on the basis of transfer price agreed between which are subject to an insignificant risk of changes
the segments. Such transfer prices are either in value, and bank overdrafts. Bank overdrafts are
determined to yield a desired margin or agreed shown within borrowings in current liabilities in the
on a negotiated business. balance sheet.
254
Introduction 01-13
2.22 Foreign currency translation the group uses an average rate to translate
(i) Functional and presentation currency income and expense items, if the average rate
approximates the exchange rates at the dates
Items included in the financial statements are
of the transactions
measured using the currency of the primary economic
environment in which the entity operates (‘the c) All resulting exchange differences arising on
functional currency’). The Group’s financial statements translation of financial statement of foreign
are presented in Indian rupee (INR) which is also the operations for consolidation are recognised in
Group’s functional and presentation currency. other comprehensive income.
d)
On disposal of a foreign operation, the
Integrated Report
(ii) Transactions and balances
component of OCI relating to that particular
Foreign currency transactions are translated into the
foreign operation is recognised in profit or loss.
functional currency using the exchange rate prevailing
at the date of the transaction. Foreign exchange e)
Any Goodwill arising on the acquisition/
gains and losses resulting from the settlement of such business combination of a foreign operation
transaction and from the translation of monetary assets and any fair value adjustments to the carrying
and liabilities denominated in foreign currencies at amounts of assets and liabilities arising on the
year end exchange rate are generally recognised in acquisition are treated as assets and liabilities
the statement of profit and loss. of the foreign operation and translated at the
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spot rate of exchange at the reporting date.
Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated f) Gain or loss on a subsequent disposal of
using the exchange rates at the dates of the initial any foreign operation excludes translation
Statutory Reports
transactions. Non-monetary items measured at fair differences that arose before the date of
value in a foreign currency are translated using the transition but includes only translation
exchange rates at the date when the fair value is differences arising after the transition date.
determined.
2.23 Provisions and Contingent Liabilities
(iii) Exchange differences Provisions
Exchange differences arising on settlement or provision is recognized when the Group has a
A
translation of monetary items are recognized as present obligation (legal or constructive) as a result of
45-141
income or expense in the period in which they arise past event, it is probable that an outflow of resources
with the exception of exchange differences on gain embodying economic benefits will be required to settle
or loss arising on translation of non-monetary items
the obligation and a reliable estimate can be made
measured at fair value which is treated in line with the
of the amount of the obligation. These estimates are Financial Statements
recognition of the gain or loss on the change in fair
reviewed at each reporting date and adjusted to reflect
value of the item (i.e., translation differences on items
the current best estimates. If the effect of the time value
whose fair value gain or loss is recognized in OCI or
of money is material, provisions are discounted using
profit or loss are also recognized in OCI or profit or
a current pre-tax rate that reflects, when appropriate,
loss, respectively).
the risks specific to the liability. When discounting is
Group Companies used, the increase in the provision due to the passage
of time is recognized as a finance cost.
On consolidation, the results and financial position
142-309
of foreign operations that have a functional currency

Warranty Provisions
different from the presentation currency (INR) are
translated to the presentation currency (INR) in the Provision for warranty-related costs are recognized
following manner: when the product is sold or service is provided to
customer. Initial recognition is based on historical
a) Assets and liabilities are translated at the rate experience. the Group periodically reviews the
of exchange prevailing at the reporting date
adequacy of product warranties and adjust warranty
b)
Their statements of profit and loss are percentage and warranty provisions for actual
translated at exchange rates prevailing at the experience, if necessary. The timing of outflow is
dates of the transactions. For practical reasons, expected to be with in one to seven years.
255

Provision for E-Waste (i) In the principal market for asset or liability, or

Provision for E-Waste management costs are
recognized when the liability in respect of products (ii) In the absence of a principal market, in the most
sold to customer is established in accordance with advantageous market for the asset or liability.
E-waste Management Rules, 2016 as notified by
Government of India. Initial recognition is based on The principal or the most advantageous market must
liability computed based on Extended Producer be accessible by the Group.
Responsibility as promulgated in said Rules including
The fair value of an asset or a liability is measured
cost to comply the said regulation and as reduced by
using the assumptions that market participants would
expected realisation of collectable waste. The Group
use when pricing the asset or liability, assuming that
has assessed the liability to arise on year to year
market participants act in their economic best interest.
basis.
Contingent liabilities A fair value measurement of a non-financial asset

takes into account a market participant’s ability to
A contingent liability is a possible obligation that
generate economic benefits by using the asset in its
arises from past events whose existence will be
highest and best use or by selling it to another market
confirmed by the occurrence or non-occurrence
participant that would use the asset in its highest and
of one or more uncertain future events beyond the
best use.
control of the Group or a present obligation that is not
recognized because it is not probable that an outflow
The Group uses valuation techniques that are
of resources will be required to settle the obligation. A
appropriate in the circumstances and for which
contingent liability also arises in extremely rare cases,
sufficient data are available to measure fair value,
where there is a liability that cannot be recognized
maximising the use of relevant observable inputs and
because it cannot be measured reliably. the Group
minimising the use of unobservable inputs.
does not recognize a contingent liability but discloses
its existence in the financial statements unless the All assets and liabilities for which fair value is
probability of outflow of resources is remote. measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described
Provisions, contingent liabilities, contingent assets
as follows, based on the lowest level input that is
and commitments are reviewed at each balance
significant to the fair value measurement as a whole:
sheet date.

Level 1- Quoted(unadjusted) market prices in active
2.24 Dividend Distributions
markets for identical assets or liabilities
The Group recognizes a liability to make the payment
of dividend to owners of equity, when the distribution Level 2- Valuation techniques for which the lowest level
is authorised and the distribution is no longer at the input that is significant to the fair value measurement
discretion of the Group. As per the corporate laws in is directly or indirectly observable
India, a distribution is authorised when it is approved
by the shareholders. A corresponding amount is Level 3- Valuation techniques for which the lowest level
recognised directly in equity. input that is significant to the fair value measurement
is unobservable
2.25 Fair value measurement
The Group measures financial instruments at fair For assets and liabilities that are recognized in the
value at each balance sheet date. financial statements on a recurring basis, the Group
determines whether transfers have occurred between
Fair value is the price that would be received to sell levels in the hierarchy by re-assessing categorization
an asset or paid to transfer a liability in an ordinary (based on the lowest level input that is significant to
transaction between market participants at the fair value measurement as a whole) at the end of each
measurement date. The fair value measurement reporting period.
is based on the presumption that the transaction
to sell the asset or transfer the liability takes place For the purpose of fair value disclosures, the Group
either: has determined classes of assets and liabilities on
256
Introduction 01-13
the basis of the nature, characteristics and risks of transferor is aggregated with corresponding
the asset or liability and the level of the fair value balance appearing in the financial statements
hierarchy as explained above. of the transferee or is adjusted against revenue
reserve.
2.26 Business Combinations
e) The identity of the reserves shall be preserved
(i)
Business combinations are accounted for and shall appear in the financial statements of
using the acquisition method. The cost of an the transferee in the same form in which they
acquisition is measured as the aggregate of appeared in the financial statements of the
the consideration transferred measured at transferor.
acquisition date fair value and the amount of
Integrated Report
any non-controlling interests in the acquiree. f) The difference, if any, between the amounts
For each business combination, the Group recorded as share capital issued plus any
elects whether to measure the non-controlling additional consideration in the form of cash or
interests in the acquiree at fair value or at other assets and the amount of share capital of
the proportionate share of the acquiree’s the transferor is transferred to revenue reserves.
identifiable net assets. Acquisition-related
costs are expensed as incurred. 2.27 Significant accounting judgements, estimates
and assumptions
At the acquisition date, the identifiable assets
The preparation of these consolidated financial
14-44
acquired, and the liabilities assumed are
statements requires the management to make
recognised at their acquisition date fair values.
judgments, use estimates and assumptions that affect
For this purpose, the liabilities assumed include
the reported amounts of revenues, expenses, assets
contingent liabilities representing present
and liabilities, and the grouping disclosures, and the
Statutory Reports
obligation and they are measured at their
disclosure of contingent liabilities. Uncertainty about
acquisition fair values irrespective of the fact
these judgements, assumptions and estimates could
that outflow of resources embodying economic
result in outcomes that require a material adjustment
benefits is not probable.
to the carrying amount of the asset or liability affected
(ii)
Business Combinations involving entities or in future periods.
businesses in which all the combining entities
or businesses are ultimately controlled by the a) Leases
same party or parties both before and after the The Group determines the lease term as the non-
45-141
business combination, and where that control cancellable term of the lease, together with any
is not transitory is accounted using the pooling periods covered by an option to extend the lease
of interests method as enumerated below: if it is reasonably certain to be exercised, or any
a) The assets and liabilities of the combining periods covered by an option to terminate the Financial Statements
entities are reflected at their carrying amounts. lease, if it is reasonably certain not to be exercised.
The Group has several lease contracts that include
b) No adjustments are made to reflect fair values, extension and termination options. The Group applies
or recognise any new assets or liabilities. judgement in evaluating whether it is reasonably
The only adjustments that are made are to certain whether or not to exercise the option to
harmonise accounting policies. renew or terminate the lease. That is, it considers all
c)
The financial information in the financial relevant factors that create an economic incentive for
statements in respect of prior periods should it to exercise either the renewal or termination. After
142-309
be restated as if the business combination had the commencement date, the Group reassesses the
occurred from the beginning of the preceding lease term if there is a significant event or change
period in the financial statements, irrespective in circumstances that is within its control and affects
of the actual date of the combination. However, its ability to exercise or not to exercise the option to
if business combination had occurred after renew or to terminate (e.g., construction of significant
that date, the prior period information shall be leasehold improvements or significant customisation
restated only from that date. to the leased asset).
d)
The balance of the retained earnings Refer to Note 32(11) for information on potential future
appearing in the financial statements of the rental payments relating to periods following the
257

exercise date of extension and termination options reviewed at each reporting date. In determining the
that are not included in the lease term. appropriate discount rate, management considers
the interest rates of long term government bonds with
b) Revenue from contract with customers extrapolated maturity corresponding to the expected
The Group applied judgements that affect the duration of the defined benefit obligation. The mortality
determination of the amount and timing of revenue rate is based on publicly available mortality tables for
from contracts with customers, such as identifying India. Future salary increases and pension increases
performance obligations in a bundled sales are based on expected future inflation rates for India.
transactions, wherein, the Group sell goods and Further details about the assumptions used, including
maintenance/ warranty services separately or a sensitivity analysis, are given in Note 32(5).
bundled together with sales of goods. In certain
non-standard contracts, where the Group provides e) Fair value measurement of financial instruments
extended warranties in respect of sale of consumer When the fair value of financial assets and financial
durable goods, the Group allocates the portion of liabilities recorded in the balance sheet cannot be
the transaction price to goods based on its relative measured based on quoted prices in active markets,
consolidated prices. Also, certain contracts of sale their fair value is measured using valuation techniques
includes volume rebates that give rise to variable including the Discounted Cash Flow (DCF) model.
consideration. In estimating the variable consideration The inputs to these models are taken from observable
the Group has used a combination of most likely markets where possible, but where this is not feasible,
amount method and expected value method. Further, a degree of judgment is required in establishing fair
as the case may be, in respect of long term contracts, values. Judgments include considerations of inputs
the Group has used the incremental borrowing rate to such as liquidity risk, credit risk and volatility. Changes
the discount the consideration as this is the rate which in assumptions about these factors could affect the
commensurate with rate that would be reflected in reported fair value of financial instruments.
separate financing arrangement between the Group
and its customer. f) Impairment of Financial assets
c) Taxes The impairment provisions of financial assets are

based on assumptions about risk of default and
Uncertainties exist with respect to the interpretation of
expected loss rates. the Group uses judgment in
tax regulations, changes in tax laws, and the amount
making these assumptions and selecting the inputs
and timing of future taxable income. Given the wide
to the impairment calculation, based on Group’s past
range of business relationships differences arising
history, existing market conditions as well as forward
between the actual results and the assumptions
looking estimates at the end of each reporting period.
made, or future changes to such assumptions, could
necessitate future adjustments to tax income and g) Impairment of Non-Financial assets
expense already recorded. The Group establishes
The Group assesses at each reporting date whether
provisions, based on reasonable estimates. The
there is an indication that an asset including
amount of such provisions is based on various factors,
intangible assets having indefinite useful life and
such as experience of previous tax audits and differing
goodwill may be impaired. If any indication exists,
interpretations of tax regulations by the taxable entity
or when annual impairment testing for an asset is
and the responsible tax authority. (Refer Note 16)
required, the Group estimates the asset’s recoverable
amount. An assets recoverable amount is the higher
d) Gratuity benefit
of an asset’s CGU’S fair value less cost of disposal
The cost of defined benefit plans (i.e. Gratuity benefit) and its value in use. Where the carrying amount of
is determined using actuarial valuations. An actuarial an asset or CGU exceeds its recoverable amount, the
valuation involves making various assumptions which asset is considered impaired and is written down to its
may differ from actual developments in the future. recoverable amount.
These include the determination of the discount rate,
future salary increases, mortality rates and future In assessing value in use, the estimated future
pension increases. Due to the complexity of the cash flows are estimated based on past rend and
valuation, the underlying assumptions and its long-term discounted to their present value using a pre-tax
nature, a defined benefit obligation is highly sensitive discount rate that reflects current market assessments
to changes in these assumptions. All assumptions are of the time value of money and the risks specific to the
258
Introduction 01-13
asset. In determining fair value less costs of disposal, is initially based on the Group’s historical observed
recent market transactions are taken into account. If default rates. The Group will calibrate the matrix
no such transactions can be identified, an appropriate to adjust the historical credit loss experience with
valuation model is used. These calculations are forward-looking information. At every reporting date,
corroborated by valuation multiples, or other fair value the historical observed default rates are updated and
indicators. changes in the forward-looking estimates are analysed.
The assessment of the correlation between historical
h) Provision for warranty and e- waste observed default rates, forecast economic conditions
Warranty provisions is determined based on the and ECLs is a significant estimate. The amount of
historical percentage of warranty expense to sales ECLs is sensitive to changes in circumstances and of
Integrated Report
for the same types of goods for which the warranty forecast economic conditions. The Group’s historical
is currently being determined. The same percentage credit loss experience and forecast of economic
to the sales is applied for the current accounting conditions may also not be representative of
period to derive the warranty expense to be accrued. customer’s actual default in the future. The information
In respect of e-waste, management calculates the about the ECLs on the Group’s trade receivables and
obligation in accordance with E-Waste management contract assets is disclosed in Note 32(11)(b).
Rules, 2016 and accounts/fulfil the obligation on its
own account or on 3rd party service provider. It is j) Property, Plant and Equipment and intangible
adjusted to account for unusual factors related to the
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assets
goods that were sold, such as defective inventory
Property, Plant and Equipment represent significant
lying at the depots. The warranty/e-waste claims
portion of the asset base of the Group. The charge
may not exactly match the historical warranty/e-
in respect of periodic depreciation is derived after
Statutory Reports
waste percentage, so such estimates are reviewed
annually for any material changes in assumptions determining an estimate of assets expected useful
and likelihood of occurrence. The assumptions are life and expected value at the end of its useful life.
consistent with prior years. (Refer Note 19) The useful life and residual value of Group’s assets
are determined by Management at the time asset is
i)
Provision for expected credit losses of trade acquired and reviewed periodically including at the
receivables and contract assets end of each year. The useful life is based on historical
The Group uses a provision matrix to calculate ECLs for experience with similar assets, in anticipation of future
trade receivables and contract assets. The provision events, which may have impact on their life such as
45-141
rates are based on days past due for groupings of change in technology.
various customer segments that have similar loss
patterns (i.e., by geography, product type, customer 2.28 Standards issued but not effective
type and rating, and coverage by letters of credit and There are no standards that are issued but not yet Financial Statements
other forms of credit insurance). The provision matrix effective on March 31, 2021.
142-309
259
3 Property, plant and equipment

(` in crores)
Particulars Freehold Leasehold Buildings Leasehold Plant and Moulds Furniture Vehicles R&D Office Electrical Right of Total Capital Grand
Land Land Improvements Equipments and Dies and Equipment's Equipment's Installations use asset Work in Total
fixtures progress
Leasehold Leasehold
Land Building
At April 1, 2019 27.28 185.38 706.04 16.81 580.30 143.25 39.02 12.11 25.34 92.09 42.53 - - 1,870.15 232.15 2,102.30
Reclassified on account of adoption of Ind AS - (185.38) - - - - - - - - - 176.98 - (8.40) - (8.40)
116 "Leases" {refer note (ii)(c) below}
Transition impact on account of adoption of Ind - - - - - - - - - - - - 129.59 129.59 - 129.59
AS 116 "Leases"
Additions - - 85.37 0.77 254.19 83.67 8.45 1.38 14.09 19.18 4.72 40.82 24.95 537.59 58.66 596.25
Disposals/adjustments - - 1.50 (4.20) (0.73) (0.31) (0.39) (0.67) (0.10) (2.40) (1.02) - (1.36) (9.68) (208.04) (217.72)
At March 31, 2020 27.28 - 791.74 13.38 829.61 225.63 46.64 12.82 38.05 108.00 46.12 217.80 153.18 2,510.25 82.77 2,593.02
Additions - - 35.57 1.45 41.81 79.56 10.03 - 4.08 12.12 3.19 39.58 56.96 284.35 143.34 427.69
Recognition of grant related to assets {Refer - - (0.21) - (3.08) (2.83) (0.69) - - (1.17) (0.26) (17.71) - (25.95) - (25.95)
note (vi) below}
Disposals/adjustments - - (52.02) (1.67) (0.94) (1.37) (2.45) (0.08) - (1.79) (2.23) (11.39) (27.64) (101.58) (139.85) (241.43)
Transfers to assets classified as held for sale - - - - (8.21) (5.54) - - - (0.19) - - - (13.94) - (13.94)
At March 31, 2021 27.28 - 775.08 13.16 859.19 295.45 53.53 12.74 42.13 116.97 46.82 228.28 182.50 2,653.13 86.26 2,739.39
260
Accumulated Depreciation
At April 1, 2019 - 8.40 100.19 4.92 181.93 61.72 12.25 5.60 6.20 41.95 13.33 - - 436.49 - 436.49
Reclassified on account of adoption of Ind AS - (8.40) - - - - - - - - - - - (8.40) - (8.40)
116 "Leases" {refer note (ii)(c) below}
Disposals/adjustments - - 0.82 (1.52) (0.52) (0.14) (0.28) (0.60) (0.08) (2.03) (0.24) - (0.38) (4.97) - (4.97)
At March 31, 2020 - - 129.69 5.97 241.40 85.59 16.31 6.71 10.35 58.74 17.59 2.16 36.15 610.66 - 610.66
Disposals/adjustments - - (11.56) (0.84) (0.66) (1.14) (1.28) (0.07) - (1.48) (1.92) (0.89) (9.02) (28.86) - (28.86)
Transfers to assets classified as held for sale - - - - (7.63) (4.52) - - - (0.14) - - - (12.29) - (12.29)
At March 31, 2021 - - 148.57 6.86 309.93 119.85 20.15 8.05 16.52 78.09 20.96 3.71 59.61 792.30 - 792.30
Net carrying amount
At March 31, 2020 27.28 - 662.05 7.41 588.21 140.04 30.33 6.11 27.70 49.26 28.53 215.64 117.03 1,899.59 82.77 1,982.36
At March 31, 2021 27.28 - 626.51 6.30 549.26 175.60 33.38 4.69 25.61 38.88 25.86 224.57 122.89 1,860.83 86.26 1,947.09
Notes:
(i) All property, plant and equipment (excluding “Right of Use” are held in name of the Group, except:
(a) Building situated, at Sahibabad, net block amounting to ` 26.74 Crores constructed on the land taken on lease by the Group from its related party for which lease deed is yet to be registered with the appropriate authority.
(b) Freehold land, located at Samaypur Badli, Delhi, net block amounting to ` 15.89 Crores (March 31, 2020: ` 15.89 Crores) and building constructed on such land, net block amounting to ` 1.05 Crores (March 31, 2020: ` 1.28 Crores) which is pending
for registration with appropriate authority.
(ii) Right of Use asset includes:-
(a) “Leasehold Land” represents land obtained on long term lease from various Government authorities.
(b) Leasehold Building represents properties taken on lease for its offices and warehouses accounted for in accordance with principle of Ind AS 116 ‘Leases’ . Refer Note 32(4)
(c) During the previous year the net block of Leasehold land of ` 176.98 crores (Gross block - ` 185.28 crores and accumulated depreciation - ` 8.40 crores) was reclassified to “Right of Use” assets on account of adoption of Ind AS 116 “Leases”.
(iii) Capital work in progress as at March 31, 2021 includes assets under construction at various plants including air conditioners, water heater, cable and wires and switch gears, etc. Adjustment in relation to capital work in progress relates to addition in
property, plant and equipment made during the year.
(iv) Plant and machinery, generators, furniture and fixtures, electric fans and installations has been pledged/hypothecated as security by the Group {refer note 31(C)}.
(v) Disclosure of Contractual commitment for the acquisition of property plant and equipment has been provided in note 31(B).
(vi) During the current year, the Group has recognised the grants related to assets in accordance with IND AS 20 - “Government Grant” as reduction from carrying value of assets.
4 Goodwill and other intangible assets

(` in crores)
Particulars Computer R&D Trademarks Distributor/ Non-compete Total Goodwill Intangibles Total Intangible
Software Software Dealer Network Fee Other Intangible assets under Asset
Asset development
At April 1, 2019 45.26 7.27 1,029.00 82.40 58.50 1,222.43 310.47 0.51 1,533.41
Additions 3.88 1.31 - - - 5.19 - 3.30 8.49
At March 31, 2020 49.09 8.58 1,029.00 82.40 58.50 1,227.57 310.47 3.36 1,541.40
Additions 4.83 1.08 - - - 5.91 - 1.28 7.19
Recognition of grant related to assets {Refer note 3 (vi)} (0.17) - - - - (0.17) - - (0.17)
At March 31, 2021 53.72 9.66 1,029.00 82.40 58.50 1,233.28 310.47 3.65 1,547.40
Amortization
At April 1, 2019 23.99 3.12 - 19.60 15.86 62.57 - - 62.57
261
At March 31, 2020 29.65 4.29 - 29.90 24.22 88.06 - - 88.06
At March 31, 2021 35.81 5.56 - 40.20 32.58 114.15 - - 114.15
Net carrying amount

At March 31, 2020 19.44 4.29 1,029.00 52.50 34.28 1,139.51 310.47 3.36 1,453.34
At March 31, 2021 17.91 4.10 1,029.00 42.20 25.92 1,119.13 310.47 3.65 1,433.25
Notes: -
Impairment testing of goodwill and intangible assets with indefinite lives
Goodwill of ` 310.47 crores and Trademarks of ` 1,029.00 crores acquired on acquisition of Lloyd business having indefinite useful lives as assessed by the management have been allocated to a separate single cash generating unit (CGU) i.e. LLOYD
consumer which is also an operating and reportable segment, for impairment testing. The Group has performed an annual impairment test to ascertain the recoverable amount of CGU. The recoverable amount is determined based on value in use calculation.
These calculations uses management assumptions and pre tax cash flow projections based on financed budgets approved by management generally covering over a period of 5 years. Cash flow projection beyond 5 years time period are extrapolated using the
estimated growth rates which is consistent with forecasts included in industry reports specific to industry in which CGU operates. Further the management have factored the impact of COVID-19 on the cash flow projections used in assessment of recoverable
amount of CGU . Therefore, Trademark is carried at cost without amortisation but instead of impairment. Management has determined following assumptions for impairment testing of CGU as stated below:-
Assumption March 31, 2021 Approach used in determining value

Weighted average Cost of capital % (WACC) before tax(discount rate) 13.50% It has been determined basis risk free rate of return adjusted for equity risk premium.
Long Term Growth Rate 5.00% This is the weighted average growth rate used to extrapolate cash flows beyond the budget period. The
rates are consistent with forecasts included in industry reports.
Management determined budgeted gross margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The calculations performed
indicate that there is no impairment of CGU of the Group. Management has performed a sensitivity analysis with respect to changes in assumptions for assessment of value-in-use of CGU. Based on this analysis, management believes that change in any of
above assumption would not cause any material possible change in carrying value of unit’s CGU over and above its recoverable amount.

5 Contract Balances
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(A) Trade Receivables {refer note (a) below and note 10(B)} 567.05 249.62
567.05 249.62
(B) Contract Assets (Unsecured, considered good) {refer note (b)} 69.90 80.59
69.90 80.59
(C) Contract liability {refer note (c) and note 22(v) } 14.11 20.06
14.11 20.06
Notes:
(a) Trade Receivable represents the amount of consideration in exchange for goods or services transferred to the customers that is
unconditional.
(b) During the earlier years, the Group had entered in to an agreement with customer wherein the Group had identified multiple performance
obligations in contract as per Ind AS 115 “Revenue from contract with customers”. The Group’s right to receive consideration is
conditional upon satisfaction of all performance obligations. Accordingly, the Group has recognised contract asset in respect of
performance obligation satisfied during the year. Contract assets are in the nature of unbilled receivables, which arises when Group
satisfies a performance obligation but does not have an unconditional rights to consideration. Contract assets have decreased in the
current year on account of change in the time frame for a” right to consideration” become unconditional.
(c) The Group has entered into the agreements with customers for sales of goods and services. The Group has identified these performance
obligations and recognised the same as contract liabilities in respect of contracts, where the Group has obligation to deliver the goods
and perform specified services to a customer for which the Group has received consideration. There has been no significant change
in the contract liabilities.
6 NON-CURRENT FINANCIAL ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
(A) Trade receivables (valued at amortised cost)
Unsecured {refer note 10(B)}
3.32 7.96
(B) Other financial assets (valued at amortised cost)
Earnest money and Security Deposits 20.17 21.37
20.17 21.37
7 OTHER NON-CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Capital advances 14.81 10.16
Others
Deposits with Statutory and Government authorities 33.64 34.67
54.62 50.67
262
Introduction 01-13
8 NON-CURRENT TAX ASSET (NET)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Income tax assets (net of provision for income tax) 23.56 16.53
23.56 16.53
9 INVENTORIES
(` in crores)
Integrated Report
As at As at
March 31, 2021 March 31, 2020
(Valued at lower of cost and net realisable value unless otherwise stated)
Raw materials and components 635.71 427.67
Work-in-progress 167.53 100.52
Finished goods 1,211.73 836.99
Stores and spares 25.40 21.02
Loose Tools 0.86 2.02
14-44
Scrap materials 14.91 8.95
2,619.89 1,871.88
Statutory Reports
Notes:
(` in crores)
As at As at
March 31, 2021 March 31, 2020
(a) The above includes goods in transit as under:
Raw Materials 110.61 81.64
Finished goods 136.37 44.86
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(b) The stock of scrap materials have been taken at net realisable value.
(c) Inventories are hypothecated with the bankers against working capital
limits. {Refer note 31(C)}
(d) During the year ` Nil (March 31, 2020 : ` 16.69 Crores) was recognised as
an expense for inventories carried at the net realisable value.
10 CURRENT FINANCIAL ASSETS

(A) Current Investment (valued at amortised cost)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
142-309
Deposits account with financial institution with original maturity of more than 154.77 -
three months but less than twelve months {refer note (a)}
Deposits account with financial institution with original maturity of more than 151.53 -
twelve months {refer note (a)}
306.30 -
Notes:
(a) The deposits maintained by the Group with financial institution comprise of the time deposits and are made of varying periods between
one day to twelve months depending on the immediate cash requirements of the Group and earn interest at the respective short-term
deposit rates.
263

(B) Trade Receivables (valued at amortised cost)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Unsecured
Trade receivables from contract with customers - credit impaired 69.35 44.87
Trade receivables (gross) 636.40 294.49
Less : Impairment allowance for trade receivables 69.35 44.87
Trade receivables (net) 567.05 249.62
Notes:
(a)
Trade receivables are usually on trade terms based on credit worthiness of customers as per the terms of contract with
customers.
(b) Neither trade nor other receivables are due from directors or other officers of the Group either severally or jointly with any other person,
Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or
a member.
(c) The Group has availed Receivable Buyout facility from banks against which a sum of ` 167.99 crores (March 31, 2020: ` 404.31 crores)
has been utilised as on the date of Balance Sheet. The Group has assigned all its rights and privileges to the bank and there is no
recourse on the Group. Accordingly the amount of utilization has been reduced from trade receivables.
(d) The Group has arranged channel finance facility for its customers from banks against which a sum of ` 681.35 crores (March 31, 2020:
` 605.99 crores) has been utilised as on the date of Balance Sheet and correspondingly, the trade receivables stand reduced by the
said amount as there is no recourse on the Group.
(C) Cash and Cash Equivalents

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deposits with a original maturity of less than three months {refer note (b)} 296.37 175.35
(C) 354.62 267.70
Notes:
(a) There are no restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior period.
(b) Short-term deposits are made of varying periods between one date to three months depending on the immediate cash requirements
of the Group and earn interest at the respective short-term deposits rates.
(c) Changes in liabilities arising from financing activities:

March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Opening balance 40.50 94.50 - - 121.61 -
Transition impact on account of adoption - - - - - 126.80
of Ind AS 116 {refer Note 32(4)}
Addition on account of new leases during - - - - 56.84 24.95
the year {refer Note 32(4)}
264
Introduction 01-13

March 31, March 31, March 31, March 31, March 31, March 31,
2021 2020 2021 2020 2021 2020
Deletion on account of termination of - - - - (18.06) (1.39)
leases during the year {refer Note 32(4)}
Lease Rent Concession - - - - (2.54) -
Cash Inflow from Borrowings 500.00 500.00
Cash inflow from issue of commercial - - 488.25 - - -
Integrated Report
paper {refer note (a)} below
Cash outflows (49.50) (54.00) (988.25) - (27.19) (28.75)
Interest expense 25.04 5.17 22.04 - 9.68 10.92
Interest paid (23.84) (5.17) (22.04) - (9.68) (10.92)
Closing balance 492.20 40.50 - - 130.66 121.61
Non-current Borrowing {refer note 14 (A)} 393.65 - - - - -
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Non-current lease liability {refer note 14 - - - - 101.51 89.74
(B)}
Current maturity of long term borrowing 98.55 40.50 - - - -
{refer note 18(C}
Statutory Reports
Current maturity of long term lease liability - - - - 29.15 31.87
{refer note 18 (A)}
Notes:
(a) During the year the Group has issued unsecured Commercial Paper (CP) worth ` 500 crores at the issue price of ` 488.25 crores having
maturity date of March 26,2021 . These have been fully repaid on due date including interest thereon.
(b) During the year, the Group has availed short term loan of ` 200 crores from HSBC Bank Ltd for general business purpose for a period
of 90 days and the same was rolled over for further 90 days .The same has been repaid including interest thereon
(c) During the year, the Group has availed unsecured working capital loan of ` 300 crores from DBS bank which was repayable on demand
45-141
and the Group has repaid fully during the year including interest thereon.
(d) For term loan (refer note 14(A))
(d) Other Bank Balances

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deposits account with original maturity of more than three months but less than 384.62 625.58
twelve months {refer note (a)}
Deposits account with original maturity of more than twelve months {refer note (b)} 910.68 235.62
Unpaid dividend account {refer note (c)} 2.87 3.63
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(D) 1,298.17 864.83
(C+D) 1,652.79 1,132.53

Notes:
(a) The deposits maintained by the Group with banks comprise of the time deposits, which may be withdrawn by the Group at any point
of time without prior notice and are made of varying periods between one day to twelve months depending on the immediate cash
requirements of the Group and earn interest at the respective short-term deposit rates.
(b) Fixed deposit with original maturity of more than twelve months but remaining maturity of less than twelve months have been disclosed
under other bank balances.
(c) The Group can utilise the balance towards settlement of unclaimed dividend.
265

(E) Other Financial Assets (valued at amortised cost)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Earnest money and security deposits 3.91 4.53
Contractual claims and other receivables 23.14 23.24
Consideration Receivable 17.27 -
45.99 29.44
Notes:
(a) Contractual claims and other receivables includes claims in accordance with contract with vendors.
(b) Consideration receivable includes the amount receivable upon liquidation of joint venture namely “Jiangsu Havells Sylvania Lighting
Co. Limited” as per terms agreed with joint venture partner.
11 OTHER CURRENT ASSETS

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Advances other than capital advances
Advances for materials and services 17.47 21.44
Others
Duty free licenses in hand 0.19 1.85
Insurance claim receivable - 0.74
Government grant receivable 23.02 71.18
Balance with Statutory/ Government authorities 46.28 60.62
111.07 165.32
Movement of Government grant receivable

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Accrual of Grant related to income (credited to statement of profit and loss 9.87 33.16
account) (refer note 22)
Accrual of Grant related to assets 8.41 22.49
Grant related to asset realised (30.90) -
Grant related to income realised (35.54) (26.34)
Closing Balance 23.02 71.18
Note: Government grant receivable includes export incentives, Budgetary support for refund of Goods and Service Tax and investment
subsidy.
266
Introduction 01-13
12 ASSETS CLASSIFIED AS HELD FOR SALE

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Property, plant and equipment
Assets retired from active use {refer note (a) below} 0.58 0.95
Investment in joint venture
Jiangsu Havells Sylvania Lighting Co., Limited {refer note (b) below} - 18.85
Integrated Report
(50% contribution in paid in capital)
0.58 19.80
Notes:
(a) The Group classified certain items of Property Plant and Equipment retired from active use and investment in joint venture under
liquidation and are held for sale recognised and measured in accordance with Ind-AS 105 “Non Current Assets Held For Sale and
Discontinued Operations” at lower of its carrying amount and fair value less cost to sell. The Group expects to complete the sale by
September 2020 (previous year :-September 2019) by selling it in the open market.
(b) In the earlier year, the holding company and its joint venture partner in respect of their joint venture namely “Jiangsu Havells Sylvania
14-44
Lighting Co. Limited”, have applied for liquidation and formed a liquidation committee. Accordingly, the investment in joint venture was
classified as asset held for sale, recognised and measured in accordance with Ind-AS 105 “Non-Current Assets Held for Sale and
Discontinued Operations” at lower of its carrying amount and fair value less cost to sell. During the current year, final consideration
amounting to USD 2.35 million has been agreed between the co-venturers, accordingly the same has been classified to other financial
Statutory Reports
assets {refer note 10(E)(b)}
13 EQUITY
(A) Share Capital
a) Authorized Share Capital
(` in crores)
As at As at
March 31, 2021 March 31, 2020
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1,032,000,000 equity shares of `1/- each (March 31,2020: 103.20 103.20
1,032,000,000 equity shares of `1/- each)
5,50,000 preference shares of ` 10/- each (March 31,2020: 5,50,000 0.55 0.55
preference shares of ` 10/- each) Financial Statements
103.75 103.75
b) Issued, subscribed and fully paid-up

(` in crores)
As at As at
March 31, 2021 March 31, 2020
626,013,006 equity shares of `1/- each 62.60 62.58
(March 31, 2020: 625,802,834 equity shares of `1/- each)
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c) Reconciliation of the shares outstanding at the beginning and at the end of the period/ year

No. of shares ` in crores No. of shares ` in crores
At the beginning of the year 625,802,834 62.58 625,472,910 62.55
Add: Exercise of Employee stock 210,172 0.02 329,924 0.03
purchase plan - proceeds received
626,013,006 62.60 625,802,834 62.58
267

d) Terms/rights attached to equity shares

The Group has only one class of issued share capital i.e. equity shares having a par value of `1/- per share (March
31,2020 : `1/- per share). Each holder of equity shares is entitled to one vote per share. The Group declares and
pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Group, the holders of equity shares will be entitled to receive remaining assets of
the Group after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of
equity shares held by the shareholders.
e) Details of shareholders holding more than 5% shares in the Group is set out below (representing legal and
beneficial ownership):
Name of shareholders As at March 31, 2021 As at March 31, 2020

No. of shares % holding No. of shares % holding
Shri Anil Rai Gupta as Managing Trustee 77,425,200 12.37 77,425,200 12.37
of ARG Family Trust
Shri Surjit Kumar Gupta as Trustee of 36,432,180 5.82 36,432,180 5.82
SKG Family Trust
QRG Enterprises Limited 189,858,880 30.33 189,858,880 30.34
QRG Investments and Holdings Limited 68,741,660 10.98 68,741,660 10.98
Nalanda India Equity Fund Limited 33,044,930 5.28 33,044,930 5.28
f) Shares reserved for issue under Employee stock purchase plan

Information relating to Employee stock purchase plan, including details of option issued, exercised and lapsed
during the financial year and options outstanding as at end of the reporting period are set out in note 32(8) .
(B) Other Equity

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Capital reserve 7.63 7.63
Securities premium 90.38 80.58
Share option outstanding account 0.64 0.64
General reserve 722.72 722.72
Retained Earnings 4,292.09 3,437.60
Foreign currency translation reserve 0.24 (0.19)
Total other equity 5,113.70 4,248.98
a) Capital reserve 7.63 7.63
b) Securities premium account

Add: Exercise of Employee stock purchase plan - proceeds received 9.80 24.18
c) Stock options outstanding account

Add : Employee stock option expense 0.01 0.37
Less: Deletions during the year (0.01) -
d) General Reserve 722.72 722.72
268
Introduction 01-13
(` in crores)
As at As at
March 31, 2021 March 31, 2020
e) Retained Earnings
Opening balance 3,437.60 3347.25
Net profit for the year 1,044.31 735.35
Items of other comprehensive income recognised directly in retained
earnings
Re-measurement gains / (losses) on defined benefit plans (net of tax) (2.02) (3.73)
Dividends
Integrated Report
Final Dividend ` Nil per share for 2019-20, (` 4.5 per share for FY 2018-19) - (281.61)
Dividend distribution tax on final dividend - (57.89)
Interim Dividend of Re 3 per share for FY 2020-21 (187.80) (250.32)
(` 4 per share for FY 2019-20)
Dividend distribution tax on interim dividend - (51.45)
Closing balance 4,292.09 3,437.60
f) Currency translation reserves

Opening balance (0.19) 0.76
14-44
Exchange difference on translation of financial statements of foreign operations 0.43 0.50
Transfer to statement of profit and loss account on account of liquidation of - (1.45)
group companies
Closing balance 0.24 (0.19)
Statutory Reports
(C) Nature and Purpose of Reserves
(a) Capital reserve

During amalgamation/ merger approved by honourable court, the excess of net assets taken over the consideration paid, if
any, is treated as capital reserve. This capital reserve has arisen as a result of scheme of amalgamation in the past periods.
(b) Securities premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited
purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.
45-141
(c) General reserve
Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at
a specified percentage in accordance with applicable regulations adjusted by utilisation of reserve in accordance Financial Statements
with scheme of Amalgamation in earlier years. The purpose of these transfers was to ensure that if a dividend
distribution in a given year is more than 10% of the paid-up capital of the Group for that year, then the total dividend
distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act
2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance
with the specific requirements of Companies Act, 2013.
(d) Stock options outstanding account
The share option outstanding account is used to recognise the grant date fair value of options issued to employees
142-309
under Employee stock purchase plan.

(e) Foreign currency translation reserve

Exchange differences arising on translation of financial statements foreign operations are recognised in other comprehensive
income as described in accounting policy and accumulated in a separate reserve within equity. The cumulative amount is
reclassified to statement of profit and loss when net investment is disposed off / liquidated or classified as held for sale.
(f) Retained earnings
Retained Earnings are profits that the Group has earned till date less transfer to General Reserve, dividend or other
distribution or transaction with shareholders.
269

14 NON CURRENT FINANCIAL LIABILITIES

(A) Borrowings (valued at amortised cost)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Term loans from banks (secured)
Term loans {refer note (a) to (d) below} 492.20 40.50
492.20 40.50
Non-current portion 393.65 -
Current maturity of long term borrowing {refer note 18(C)} 98.55 40.50
Notes:
(a) The Group has availed a secured loan of ` 108 Crores against sanctioned amount of ` 300 crores from CITI bank N.A. during financial
year 2017-18.The current outstanding and sanctioned amount against the loan is ` Nil (March 31,2020; ` 40.50 Crores). The loan was
obtained for the purpose of reimbursement of prior capital expenditure incurred by the Group during 12 months previous to sanction
date. The loan was having 15 months moratorium period and repayable in 8 quarterly instalments thereafter. This loan was secured by
way of first exclusive charge by way of a hypothecation over the Group’s all movable fixed assets both present and future situated at
SP 181 to 189 and 191 (A), Industrial Area, Phase II, Neemrana, Alwar, Rajasthan, India. The Group has complied with all covenants
throughout the reporting period. The said loan has been repaid on due date during the year including interest thereon.
(b) The Group has availed secured loan of ` 250 crores (March 31,2020: ` Nil) against the sanctioned term loan amount of ` 250 crores
(March 31,2020:` Nil) from CITI Bank N.A. The current outstanding amount against the loan is ` 250 Crores (March 31,2020: ` Nil).
The loan was obtained for the purpose of fresh capital expenditure and reimbursement of prior capital expenditure incurred by the
Group during the previous year .The term loan is repayable in 16 equated quarterly instalments commencing from 15th month from first
drawdown. This term loan is secured by way of first exclusive charge by way of a hypothecation over the Group’s all movable fixed
assets both present and future situated at (i) SP 181 to 189 and 191 (A), Industrial Area, Phase II, Neemrana, Alwar, Rajasthan, India (ii)
Unit-1 Village Dharampur, Sai Road, Baddi, Dist. Solan, Himachal Pradesh, (iii) Unit-II Village Gulerwala, Dist. Solan, Baddi, Himachal
Pradesh, (iv) Unit-I, Sector -10, Plot No 2A, BHEL Complex, Haridwar and (v) Unit-II, Plot No 2A and 2D/1 Sector-10, Sidcul Industrial
Area, Haridwar, Uttarakhand.
(c) The Group has availed secured loan of ` 250 Crores (March 31,2020 : ` Nil) against the sanctioned amount of ` 350 crores (March
31,2020: ` Nil) from HDFC Bank Limited. The current outstanding amount against the loan is ` 241 Crores (March 31,2020: ` Nil).The
loan was obtained for the purpose of fresh capital expenditure and reimbursement of prior capital expenditure incurred by the Group
during 12 months of first drawdown. The term loan is repayable in 16 quarterly instalments over the period of 5 years as per terms of
agreement .This loan is secured by way of first exclusive charge by way of a hypothecation over the Group’s all movable fixed assets,
plant and machinery and all movable properties both present and future situated at (i) A-461/462,SP-215 and 204 & 204A, Matsya
Industrial Area, Alwar, Rajasthan and (ii) SP-1-133, General Zone, RIICO Industrial Area, Ghiloth.
(d) The Group has satisfied all debt covenants prescribed in terms of term loan agreements
(B) Lease Liabilities

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Lease Liability {refer note 32(4)} 101.51 89.74
101.51 89.74

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Long Term Employee Retention scheme 0.73 -
1.31 1.13
270
Introduction 01-13
15 NON-CURRENT PROVISIONS
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Product warranties and E-waste {refer note 19(a)} 58.43 35.57
58.43 35.57
16 INCOME TAXES
The major components of income tax expense for the years ended March 31, 2021 and March 31, 2020 are:
Integrated Report
(a) Income tax expense in the statement of profit and loss comprises :
Continuing Operation
(` in crores)
March 31, 2021 March 31, 2020
Current income tax charge 348.03 198.99
Adjustments in respect of current income tax of previous year (7.38) -
Total current income tax 340.65 198.99
14-44
Deferred Tax charge / (credit)
Relating to origination and reversal of temporary differences (refer note (d) 52.59 (30.23)
Income tax expense reported in the statement of profit or loss 393.24 168.76
Statutory Reports
(b) Other Comprehensive Income
Current income tax related to items recognised in Other comprehensive income during the year:
(` in crores)
March 31, 2021 March 31, 2020
Current income tax on re-measurement loss on defined benefit plans 0.68 1.25
Income tax related to items recognised in Other comprehensive income 0.68 1.25
45-141
during the year
(c) Reconciliation of tax expense and the accounting profit multiplied by India’s domestic tax rate :
(` in crores)

March 31, 2021 March 31, 2020
Accounting Profit before tax from continuing operations 1,437.55 904.37
Accounting Profit before tax from discontinued operations - (0.26)
Accounting profit before tax 1,437.55 904.11
Applicable tax rate 25.168% 25.168%
Computed Tax Expense 361.80 227.55
142-309
Impact of adoption of new tax regime under section 115BAA on deferred tax - (72.35)
liability including reversal of MAT credit entitlement
Expense not allowed for tax purpose 8.68 14.19
Additional allowances for tax (0.25) (0.63)
Impact of amendment in income tax law pursuant to Finance Act, 2021 on 32.96 -
deferred tax liability {refer note (ii)}
Utilisation of previously unrecognised tax losses (9.95) -
Income tax charged to Statement of Profit and Loss at effective rate of 393.24 168.76
27.35% (March 31, 2020: 18.66%) (refer note (v) below)
271

(d) Deferred tax liabilities comprises :

(` in crores)
Balance Sheet Statement of profit and loss
As at As at Year Ended Year Ended
Accelerated Depreciation for Tax purposes 368.63 315.47 53.16 (55.23)
Right of Use as per Ind AS 116 30.93 29.45 1.48 29.45
Lease liability as per Ind AS 116 (32.88) (30.61) (2.27) (30.61)
Expenses allowable on payment basis (11.65) (17.58) 5.93 1.26
Allowance for doubtful debts (17.45) (11.29) (6.16) (2.37)
Unabsorbed Depreciation and carried forwarded - - - 4.82
tax losses
Other Items giving rise to temporary differences 1.53 1.08 0.45 (0.13)
339.11 286.52 52.59 (52.81)
MAT credit entitlement - - - 22.58
Deferred tax liabilities (net) 339.11 286.52 52.59 (30.23)
(e) Deferred tax liabilities (net)

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Opening balance as per last balance sheet 286.52 316.75
Deferred tax charged/(credited) to profit and loss account during the year 52.59 (30.23)
Notes:
(i) The Group has unabsorbed capital loss of ` 342.05 crores as on March 31, 2021 (previous year 368.55 crores) out of which capital
loss of ` 219.75 crores will expire in financial year 2023-24 and capital loss of ` 122.30 crores will expire in financial year 2025-26, on
which no deferred tax asset has been created by the management due to lack of probability of future capital gain against which such
deferred tax assets can be realised. If the Group were able to recognise all unrecognised deferred tax assets, the profit after tax would
have increased by ` 78.26 crores (Previous year ` 85.86 Crore).
(ii) The union budget presented on February 1, 2021 which got enacted on March 28, 2021, made an important change by disallowing
depreciation on goodwill for tax deduction retrospectively from April 01, 2020. Accordingly, the tax base of goodwill as on April 01,
2020 has become Nil. As a result of above amendment, there is difference between book base and tax base of goodwill resulting in
recognition of deferred tax liability by ` 32.96 crores with consequential impact on deferred tax expense.
(iii) During the previous year, the holding company had opted for reduced tax rate as per section 115BAA of the Income Tax Act, 1961
(introduced by the Taxation Laws (Amendment) Ordinance, 2019). Accordingly, the holding company had recognised Provision for
Income Tax for that year and re-measured its Deferred tax liability basis the rate prescribed in the said section and unutilised MAT credit
entitlement was written off.
(iv) During the previous year, the holding company had paid Final dividend to its shareholders for the year ended March 31, 2019 and
Interim Dividend for the year ended March 31,2020. This had resulted in payment of dividend distribution tax (DDT) amounting to
` 109.34 crores to the taxation authorities. The holding company believes that DDT represents additional payment to taxation authority
on behalf of the shareholders. Hence, DDT paid is charged to equity in the previous year.
(v) Effective tax rate has been calculated on profit before tax.
17 OTHER NON-CURRENT LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Deferred capital goods credit {refer note 31(E)} - 17.71
- 17.71
272
Introduction 01-13
18 CURRENT FINANCIAL LIABILITIES

(A) Lease Liabilities
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current maturities of Lease liability {refer note 32 (4)} 29.15 31.87
29.15 31.87
(B) Trade Payables
Integrated Report
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Total outstanding dues of micro enterprises and small enterprises 188.78 106.28
Total outstanding dues of creditors other than micro enterprises and small 1,408.36 1,307.54
enterprises
1,597.14 1,413.82
Notes:
14-44
(i) Trade Payables include due to related parties ` 14.97 crores (March 31, 2020 : ` 3.79 crores){refer note 32(7)(D)}
(ii) The amounts are unsecured and non interest-bearing and are usually on varying trade terms
(iii) For terms and conditions with related parties. {refer to note 32(7)}
(iv) Trade payables includes acceptances of ` 64.11 Crores (March 31, 2020: ` 389.71 crores)
Statutory Reports
a) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED
Act) for the year ended March 31, 2021 is given below. This information has been determined to the extent such parties have been
identified on the basis of information available with the Group.
i) Principal amount and interest due thereon remaining unpaid to any supplier covered under MSMED Act, 2006 as at the end of each
accounting year:
Principal 188.78 106.28
Interest - -
ii) The amount of interest paid by the buyer in terms of section 16, of the MSMED Act,
45-141
2006 along with the amounts of the payment made to the supplier beyond the appointed day
during each accounting year. - -
iii) The amount of interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without Financial Statements
adding the interest specified under MSMED Act, 2006. - -
iv) The amount of interest accrued and remaining unpaid at the end of each accounting year. - -
v) The amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise for the purpose
of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006 - -
The total dues of Micro and Small Enterprises which were outstanding for more than stipulated period
are ` Nil (March 31, 2020 : ` Nil)
142-309

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Unpaid dividend {refer point (a)} 2.87 3.63
Other payables
Current Maturity of long term loan {refer note 14(A) } 98.55 40.50
Creditors for capital goods 31.25 39.41
273

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Other liabilities
Payable for services 152.76 111.69
Payable to banks against receivable buyout facilities {refer note (b) below} 28.03 155.28
Sales incentives payable 293.05 113.29
Claims Payable {refer note (c) below} 18.38 18.53
Others {refer note (d) below} 8.33 16.98
687.36 549.83
Notes:
a) Investor Education and Protection Fund is being credited by the amount of unclaimed dividend after seven years from the due date.
The Group has transferred ` 0.14 crores (March 31,2020: ` 0.11 crore) out of unclaimed dividend to Investor Education and Protection
Fund of Central Government in accordance with the provisions of section 124 of the Companies Act,2013.
b) Monies collected on behalf of banks and remitted after the balance sheet date.
c) Claims payable includes an amount of ` 18.38 crores (March 31, 2020 : ` 18.53 crores) payable by Group under its Global Sylvania
business closure process.
d) Other includes amount against E-waste liability {refer note 19(a)(ii)} and amount refundable to customers.
19 CURRENT PROVISIONS
i) Provision for employee benefits
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Gratuity {refer note no. 32(5)} 18.25 19.08
(A) 18.25 19.08
ii) Other provisions

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Product warranties and E-waste 226.37 176.94
Litigations 12.93 13.99
(B) 239.30 190.93
(A) + (B) 257.55 210.01
a) Provision for warranties and E-waste

(i) Warranties
A provision is recognized for expected warranty claims and after sales services on products sold during the last one to
seven years, based on past experience of the level of repairs and defective returns. It is expected that significant portion
of these costs will be incurred in the next financial year and all will be incurred within seven years after the reporting date.
Assumptions used to calculate the provisions for warranties are based on current sales levels and current information
available about defective returns based on one to seven years warranty period for all products sold and are consistent
with those in the prior years. The assumptions made in relation to the current year are consistent with those in the prior
year.
(ii) E-waste
A provision is recognised for probable e-waste liability based on “Extended Producer Responsibility” as furnished by the
Group to Central Pollution Control Board in accordance with E-Waste Management Rules, 2016 notified by Government
274
Introduction 01-13
of India during the year. A provision for the expected costs of management of historical waste is recognised when the
costs can be reliably measured. These costs are recognised as ‘Other expenses’ in the statement of profit and loss. As
a part of acquisition of Lloyd business in earlier year, the seller Group had agreed to ensure compliance with “ extended
producer responsibility” (EPR) in accordance with E- waste management rules, 2016 in respect of sales made by the
seller Group in respect of Lloyd consumer durable business prior to date of business acquisition i.e. May 08, 2017 .Further
management has assessed liability under E-Waste management rules on year to year basis and same has been accounted
for accordingly. Towards this, the seller Group has paid an amount of ` 8.09 crore (March 31,2020: ` 9.46 crore).
(iii) The table below gives information about movement in Warranty and E-waste provisions:
(` in crores)
Integrated Report
As at As at
March 31, 2021 March 31, 2020
Addition during the year (refer note 30) 243.37 192.61
Utilized during the year (175.29) (192.39)
Unwinding of discount {refer note no. 28} 4.21 3.55
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b) Provision for litigations
Provision for litigation amounting to ` 12.93 Crores (March 31, 2020: ` 13.99 Crores) is created against demands raised
Statutory Reports
in various ongoing litigations in ordinary course of business. Based on the facts of the case and legal precedents, the
management believes there would be a probable outflow of resources and accordingly, has created a provision in books
of account.
The table below gives information about movement in litigation provisions:

(` in crores)
As at As at
March 31, 2021 March 31, 2020
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Addition during the year - 6.39
Utilized during the year (1.06) -
20 CURRENT TAX LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Current tax liabilities (net of advance tax and tax deducted at source) 74.26 -
74.26 -
142-309
21 OTHER CURRENT LIABILITIES

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Advances from customers 26.18 38.90
Others
Goods and Service Tax Payable 40.07 29.79
Other statutory dues payable 56.13 36.94
122.38 105.63
275

22 REVENUE FROM OPERATIONS

(` in crores)
March 31, 2021 March 31, 2020
Revenue from contract with customers:
Sale of products 10,329.57 9,320.89
Sale of Services 53.16 40.69
Scrap sales 64.70 45.52
(A) 10,447.43 9,407.10
Other operating revenues
Export Incentive 9.87 7.95
Government assistance for refund of Goods and Service Tax - 25.21
{refer note (a) below}
(B) 9.87 33.16
Total revenue from operations (A) + (B) 10,457.30 9,440.26
Notes:
(a) Government assistance for refund of Goods and Service Tax represents benefits provided by the Government to the Group in respect
of its manufacturing units in the state of Assam, Himachal Pradesh and Uttarakhand in accordance with the ‘Scheme of budgetary
support under Goods and Service Tax Regime’ as notified on October 05, 2017 which were earlier eligible for excise duty exemption.
The exemption in respect of its manufacturing unit at Himachal Pradesh and Uttarakhand has expired on December 11, 2019 and
January 17, 2020 respectively while manufacturing facility situated at Assam has been closed during the current year.
(i) Timing of revenue recognition

(` in crores)
March 31, 2021 March 31, 2020
Goods transferred at a point in time 10,389.96 9,362.48
Goods transferred over the time 4.31 3.93
Services transferred over the time 53.16 40.69
(ii) Disaggregation of revenue based on product or service

(` in crores)
March 31, 2021 March 31, 2020
Switchgears 1,454.51 1,321.92
Cables 3,178.88 2,993.30
Lloyd Consumer* 1,688.61 1,590.27
Others 636.48 485.64
* Includes revenue from procurement services and service-type warranties.
(iii) Revenue by location of customers

(` in crores)
March 31, 2021 March 31, 2020
India 10,057.53 9,079.01
276
Introduction 01-13
(iv) Reconciliation of revenue recognised in statement of profit and loss with contracted price
(` in crores)
March 31, 2021 March 31, 2020
Revenue as per contracted price 10,522.51 9,473.77
Less: Cash discount (75.08) (66.67)
(v) Performance obligation
Integrated Report

Sale of products: Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred
to the customer, generally on delivery of the goods and payment is generally due as per the terms of contract with
customers.

Sales of services: The performance obligation in respect of maintenance services is satisfied over a period of time and
acceptance of the customer. In respect of these services, payment is generally due upon completion of maintenance
period based on time elapsed and acceptance of the customer. In certain non-standard contracts, where the Group
provides warranties in service of consumer durable goods, the same is accounted for as a separate performance
obligation and a portion of the transaction price is allocated based on its relative standalone prices. The performance
14-44
obligation for the warranty service is satisfied over a period of time based on time elapsed.
The transaction price allocated to remaining performance obligation (unsatisfied performance obligation) pertaining to
sales of services as at March 31, 2021 and expected time to recognise the same as revenue is as follows:-
Statutory Reports
(` in crores)
March 31, 2021 March 31, 2020
Within one year 9.54 15.74
More than one year 4.57 4.32
14.11 20.06
Note: The remaining performance obligation expected to be recognised in more than one year relates to amounts received from customer
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against which performance obligation is to be satisfied over the period of one to seven years. All other remaining performance obligation are
expected to be recognised within one year. During the year ended March 31, 2021, revenue recognised from amount included in contract
liability at the beginning of year is ` 15.22 crores (March 31, 2020: ` 1.32 crores). Revenue recognised from performance obligation satisfied
in the previous period is ` Nil (March 31, 2020: ` Nil)
23 OTHER INCOME
(` in crores)
March 31, 2021 March 31, 2020
Interest received on financial assets carried at amortised cost :
Deposits with banks 83.93 69.58
Investment 15.53 -
142-309
Others 8.10 7.02

Other non-operating income
Exchange fluctuations (net) 23.53 20.94
Liabilities no longer required written back 4.49 4.33
Gain on disposal of property, plant and equipment (net) 40.39 -
Lease rent concession {refer note 32(4)} 2.54 -
Miscellaneous income 8.85 11.54
187.36 113.41
277

24 COST OF RAW MATERIALS AND COMPONENTS CONSUMED

(` in crores)
March 31, 2021 March 31, 2020
Copper 1,830.22 1,370.66
Aluminium 514.16 532.21
General plastic & Engineering Plastic 238.98 220.45
Paints and chemicals 311.46 292.04
Steel 166.56 162.24
Other material 2,089.06 1,608.40
5,381.95 4,379.64
25 PURCHASE OF TRADED GOODS

(` in crores)
March 31, 2021 March 31, 2020
Cables 0.73 0.55
Others 221.54 161.52
1,638.82 1,280.81
26 CHANGE IN INVENTORIES OF FINISHED GOODS, TRADED GOODS AND WORK-IN-PROGRESS ETC.

(` in crores)
Inventories at the end of the year
Finished goods 1,211.73 836.99 (374.74)
Traded goods 542.66 459.30 (83.36)
Work in progress 167.53 100.52 (67.01)
1,936.83 1,405.76 (531.07)
(` in crores)
Inventories at the beginning of the year
Finished goods 836.99 623.31 (213.68)
Traded goods 459.30 851.66 392.36
Work in progress 100.52 98.77 (1.75)
1,405.76 1,578.50 172.74
278
Introduction 01-13
27 EMPLOYEE BENEFITS EXPENSES

(` in crores)
March 31, 2021 March 31, 2020
Employee stock purchase plan expense {refer note no. 32(8)} 7.59 17.06
Gratuity expense {refer note no. 32(5)} 15.55 14.11
Staff welfare expenses 6.34 12.46
Integrated Report
890.63 906.71
28 FINANCE COSTS
(` in crores)
March 31, 2021 March 31, 2020
Interest on Income tax 11.21 -
Interest on lease liability {refer note no. 32(4)} 9.68 10.92
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Miscellaneous financial expenses 0.50 0.08
Total interest expense 68.47 16.17
Unwinding of discount on long term provisions {refer note no. 19(a)(iii)} 4.21 3.55
Total Finance cost 72.68 19.72
Statutory Reports
29 DEPRECIATION AND AMORTISATION EXPENSES
(` in crores)
March 31, 2021 March 31, 2020
Depreciation of property, plant and equipment {refer note 3} 187.87 153.74
Amortization of intangible assets {refer note 4} 26.12 25.54
Depreciation of Right of use assets {refer note 3} 34.92 38.69
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248.91 217.97
30 OTHER EXPENSES
(` in crores) Financial Statements

March 31, 2021 March 31, 2020
Consumption of stores and spares 48.74 45.21
Power and fuel 84.32 92.44
Job work and service charges 246.91 203.09
Rent 31.73 38.00
Repairs and maintenance:
142-309
Plant and machinery 9.55 10.18

Buildings 2.85 2.31
Others 45.38 50.84
Rates and taxes 5.03 2.42
Insurance 20.86 17.66
Trade mark fee and royalty 0.21 0.15
Travelling and conveyance 41.41 84.69
279

(` in crores)
March 31, 2021 March 31, 2020
Communication expenses 6.87 10.35
Legal and professional charges 21.12 20.53
Payment to Auditors
As Auditors:
Audit fee 1.35 1.35
Tax audit fee 0.05 0.05
Certification fee 0.04 0.05
Reimbursement of expenses 0.01 0.09
Contribution towards Corporate Social Responsibility (CSR) {refer note no. 32(9)} 20.97 20.32
Directors sitting fees 0.45 0.35
Selling and distribution expense 361.70 343.04
Advertisement and sales promotion 132.55 320.94
Secondary sales promotion expense 33.88 48.56
Commission on sales 73.99 73.22
Product warranties and after sales services (net of reversals) 243.37 192.61
Bank Charges 17.41 31.64
Loss on sale/ discard of Property, plant and equipment (net) - 6.73
Impairment allowance for trade receivables - credit impaired 24.48 18.23
Impairment of investment in joint venture 1.10 -
Miscellaneous expenses 27.43 35.84
1,505.19 1,671.71
31 COMMITMENTS AND CONTINGENCIES

A Contingent liabilities (to the extent not provided for)
(` in crores)
As at As at
March 31, 2021 March 31, 2020
a Claims / Suits filed against the Group not acknowledged as debts {Refer 6.86 6.47
point (i)}
Disputed tax liabilities in respect of pending litigations before appellate
b 64.16 78.13
authorities {Amount deposited under protest ` 31.86 crores (March 31,
2020: ` 30.96 crores, included in “deposit with statutory and government
authorities” in note no. 7) [refer point (ii)]}
Notes:
i) Claims / suits filed against the Group not acknowledged as debts which represents various legal cases filed against the Group. The
Group has disclaimed the liability and defending the action. The Group has been advised by its legal counsel that its position is likely
to be upheld in the litigation process and accordingly no provision for any liability has been made in the financial statement.
280
Introduction 01-13
ii) The various disputed tax litigations are as under :
(` in crores)
Sl. Description {refer note below } Period to which Disputed Amount Period to which Disputed Amount
relates As at relates As at
March 31, 2021 March 31, 2020
a) Excise / Customs / Service Tax
Demands raised by Excise and 2007-08 to 2009-10, 0.40 2007-08 to 2009-10 0.39
Custom department. 2015-16 and 2019-20 and 2019-20
Integrated Report
b) Income Tax
Disallowances / additions 2005-06, 2009-10 42.21 2003-04, 2005-06 56.21
made by the income tax to to
department. 2013-14 2013-14
c) Goods and Service Tax
Demands raised by GST 2017-18 1.26 2017-18 1.26
Department and and
2019-20 2019-20
14-44
d) Sales Tax / VAT
Demands raised by Sales tax / 2005-06 20.14 2005-06 20.12
VAT department . to to
2016-17 2015-16
Statutory Reports
e) Others
Demand of local area 2001-02 0.12 2001-02 0.12
development tax by the
concerned authorities.
Demand of octroi along 2010-11 0.03 2010-11 0.03
with penalty in the state of
Maharashtra by the concerned
authorities.
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64.16 78.13
Note:
The Group is contesting these demands and the management, believe that its position will likely to be upheld in the appellate process and Financial Statements
accordingly no provision has been accrued in the financial statements for these tax demand raised. The management believes that the
ultimate outcome of this proceeding will not have a material adverse effect on the Group’s financial position and results of operations. Based
on favourable decisions in similar cases, the Group does not expect any liability against these matters in accordance with principles of
Ind AS -12 ‘Income taxes’ read with Ind AS -37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and hence no provision has been
considered in the books of accounts except for provision created in respect of few years {refer note 19(ii)}. Besides the above, show cause
notices from various departments received by the Group have not been treated as contingent liabilities, since the Group has adequately
represented to the concerned departments and does not expect any liability on this account.
B Commitments
142-309
(` in crores)
As at As at
March 31, 2021 March 31, 2020
a Estimated amount of capital contracts remaining to be executed and not 112.04 103.16
provided for (net of advances)
b Corporate Social Responsibility commitment - 28.16
112.04 131.32
281

C Undrawn committed borrowing facility

(a) The Group has availed fund based and non fund based working capital limits amounting to ` 235.00 crores (March
31, 2020 : ` 235.00 crores) from banks under consortium of Canara Bank, IDBI Bank Limited, Standard Chartered
Bank, Axis Bank, ICICI Bank Limited, Yes Bank Limited and The Hong Kong and Shanghai Banking Corporation
Limited. An amount of ` 217.12 crores remain undrawn as at March 31, 2021 (March 31, 2020 : ` 212.28 crores).
Further The limit availed is secured by way of:
i) Pari-passu first charge with consortium banks by way of hypothecation on entire paid stocks consisting of
raw material, work in progress, finished goods kept at Group’s godown, factories and book debts along with
receivables of the Group, both present and future.
ii) Pari-passu first charge with consortium banks by way of equitable mortgage of land and building at 14/3,
Mathura Road, Faridabad.
iii) Pari-passu second charge with consortium banks by way of hypothecation of plant and machinery, generators,
furniture and fixtures, electric fans and installations on which 1st charge is held with term lenders.
(b) The Group has availed a secured loan of ` 108 Crores against sanctioned amount of ` 300 crores from CITI
bank N.A. during financial year 2017-18.The current outstanding and sanctioned amount against the loan is
` Nil (March 31,2020; ` 40.50 Crores). The said loan has been repaid on due date during the year including
interest thereon. The loan is closed during the year and an amount of ` Nil is undrawn as at March 31,2021
(March 31,2020: ` 192 crores). (refer note 14(A) (a))
(c) The Group has availed secured loan of ` 250 Crores (March 31,2020 : ` Nil) against the sanctioned amount of
` 350 crores (March 31,2020: ` Nil) from HDFC Bank Limited. The current outstanding amount against the loan
is ` 241 Crores (March 31,2020: ` Nil). An amount of ` 100 crores is undrawn as at March 31, 2021. (refer note
14(A) (c))
D Other Litigations
The Group has some sales tax and other tax related litigation of ` 12.93 crores (March 31, 2020: ` 13.99 crores) against
which liability has been assessed as probable and adequate provisions have been made with respect to the same.
E Land situated at Ghiloth District, General Zone Industrial Area RIICO in the state of Rajasthan was allotted to the Group
for a consideration of ` 71.21 crores which was to be adjusted by rebate of ` 17.71 crores subject of fulfilment of certain
condition attached to grant. As at March 31, 2021, the Group is reasonably certain that it will fulfil the condition attached
to the grant, accordingly grant related to assets has been recognised by the Group by deducting the same from carrying
amount of related asset as per Ind AS 20 - “Government Grant”
F The Group has outstanding obligation amounting to ` 0.80 crores (March 31, 2020: ` 1.65 crores) in respect of bonds
given to central tax department against import of goods at concessional rate of basic custom duty .The Group expects
to fulfil the obligation in due course of time.
G The Group has export obligation of ` 10.18 crores on account of import duty exemption of ` 0.50 crores (March 31, 2020:
Nil) on capital goods under the Export Promotion Capital Goods (EPCG) scheme laid down by the Government of India.
The Group expects to fulfil the obligation in due course of time.
282
32 OTHER NOTES ON ACCOUNTS

1 Group information
(i) The Consolidated financial statement of the Group includes subsidiaries and joint venture are mentioned below :-
Sr. Name of the entity Country of Nature Ownership Year Ended Net Assets, i.e., total assets Share in profit or loss Share in other Comprehensive Share in Total
No incorporation interest held minus total liabilities Income Comprehensive income
by the group As % of Amount As % of Amount As % of Amount As % of Amount
consolidated Net (` In consolidated (` In consolidated other (` In consolidated (` In
Assets crores) profit or loss crores) comprehensive crores) comprehensive crores)
Income Income
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(I) Parent
Havells India Limited India Parent Company Mar 31, 2021 99.77% 5,164.45 99.55% 1,039.64 127.04% (2.02) 99.51% 1,037.62
Mar 31, 2020 99.84% 4,304.81 99.68% 733.03 115.48% (3.73) 99.61% 729.30
(II) Foreign Subsidiaries having no non-controlling interest
1 Havells Holdings Limited Isle of Man Wholly Owned 100.00% Mar 31, 2021 0.07% 3.85 (0.01%) (0.10) (8.81%) 0.14 0.00% 0.04
Subsidiary
100.00% Mar 31, 2020 0.09% 3.81 (0.12%) (0.90) (8.98%) 0.29 (0.08%) (0.61)
283
2 Havells Guangzhou International China Wholly Owned 100.00% Mar 31, 2021 0.19% 9.63 0.46% 4.77 (18.24%) 0.29 0.49% 5.06
Limited Subsidiary
100.00% Mar 31, 2020 0.11% 4.54 0.24% 1.78 (6.50%) 0.21 0.27% 1.99
3 Havells International Limited Malta Wholly Owned NA Mar 31, 2021 0.00% - 0.00% - 0.00% - 0.00% -
(Ceased to be subsidiary w.e.f Subsidiary
July 22, 2019)
100.00% Mar 31, 2020 0.00% - (0.03%) (0.22) 0.00% - (0.03%) (0.22)
4 Havells Exim Limited Hong Kong Wholly Owned NA Mar 31, 2021 0.00% - 0.00% - 0.00% - 0.00% -
(Dissolved with effect from Subsidiary
September 13, 2019)
100.00% Mar 31, 2020 0.00% - (0.01%) (0.04) 0.00% - (0.01%) (0.04)
Consolidation adjustment Mar 31, 2021 (0.03%) (1.63) 0.00% - 0.00% - 0.00% -
Consolidation adjustment Mar 31, 2020 (0.04%) (1.60) 0.23% 1.70 0.00% - 0.23% 1.70
Total - March 31, 2021 100.00% 5,176.30 100.00% 1,044.31 100.00% (1.59) 100.00% 1,042.72
Total - March 31, 2020 100.00% 4,311.56 100.00% 735.35 100.00% (3.23) 100.00% 732.12

2 Discontinued operations
a. During the previous year, subsidiaries of Group namely “Havells Exim Limited”, “Havells International Limited” and
“Havells Sylvania Iluminacion (Chile) Ltda” have been liquidated w.e.f. September 13, 2019, July 22, 2019 and November
28, 2019 respectively,
b. The financial performance and cash flow information for Disposal Group related to previous year is given as below:-
(` in crores)
March 31, 2021 March 31, 2020
Revenue - -
Expenses - (0.26)
Profit/ (loss) before tax from discontinued operations - (0.26)
Tax expense on profit/(loss) from discontinued operations - -
Profit/ (loss) for the year from discontinued operations - (0.26)
Re-measurement (gains)/ losses on defined benefit plans - -
Exchange difference on translation of financial statement of foreign operations - -
Other comprehensive income from discontinued operation - -
Total comprehensive income from discontinued operation - (0.26)
Cash flows from discontinued operations
Net Cash inflow / (outflow) from Operating activities - (0.26)
Net Cash inflow / (outflow) from Investing activities - -
Net Cash inflow / (outflow) from Financing activities - -
Net Cash used in discontinued operations - (0.26)
Earnings per equity share (EPS) for discontinued operations attributable to
equity holders of the parent company {refer note no. 32(13)}
(nominal value of share `1/-)
Basic EPS (`) - (0.00)
Diluted EPS (`) - (0.00)
3 During the year, the Group has capitalised the following pre-operative expenses directly relatable to the cost of property,
plant and equipment, being expenses related to projects and development of Dies and Fixtures. Consequently, expenses
disclosed under the respective notes are net of amounts capitalised by the Group.
(` in crores)
March 31, 2021 March 31, 2020
Cost of material consumed 9.48 8.48
Employee benefits expense 2.27 5.12
Other expenses 0.74 2.42
12.49 16.02
4 Leases
(i) The Group’s lease asset primarily consist of leases for land and buildings for branch offices and warehouses having the
various lease terms. The Group also has certain leases of with lease terms of 12 months or less. The Group applies the
‘short-term lease’ recognition exemptions for these leases.
(ii) Following is carrying value of right of use assets and the movements thereof :
(` in crores)
Building
Balance as at April 01, 2019 (Restated) 176.98 129.59 306.57
Deletion during the year - (0.98) (0.98)
284
Introduction 01-13
(` in crores)
Building
Recognition of grant related to assets (17.71) - (17.71)
Deletion during the year (10.50) (18.62) (29.12)
Integrated Report
(iii) The following is the carrying value of lease liability and movement thereof :
(` in crores)
Particulars Amount
Balance as at April 1, 2019 (Restated) 126.80
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Statutory Reports
Lease Rent Concession (2.54)
Current maturities of Lease liability {refer note 18 (A)} 29.15

Non-Current Lease Liability {refer note 14 (B)} 101.51
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130.66
(iv) The maturity analysis of lease liabilities are disclosed in Note 32(11).
(v) The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2019 is 8.5% Financial Statements
(vi) Amounts recognised in the statement of profit and loss during the year
(` in crores)
March 31, 2021 March 31, 2020
Depreciation charge of right-of-use assets - leasehold building 32.48 36.53
Depreciation charge of right-of-use assets - leasehold land 2.44 2.16
Finance cost accrued during the year (included in finance cost) (refer note 28) 9.68 10.92
142-309
Expense related to short term leases (included in other expense) (refer note 30) 31.73 38.00
(vii) The Group does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient
to meet the obligations related to lease liabilities as and when they fall due.
(viii) During the current year, the Group has received the Covid-19-related rent concessions for lessees amounting to
` 2.54 crores and on the basis of practical expedient as per Ind AS 116 “Leases, the same is not considered to be lease
modification, hence the income towards rent concession is recognised in “Other Income” in the statement of profit and
loss account.
285

(ix) The Group has applied a single discount rate to a portfolio of leases of a similar assets in similar economic environment
with similar end date.
(x) Non-cash investing activities during the year:
(` in crores)
March 31, 2021 March 31, 2020
Acquisition of right of use assets 56.96 24.95
Recognition of grant related to assets (17.71) -
Disposals of right of use assets (18.62) (0.98)
5 Gratuity and other post-employment benefit plans

isclosures pursuant to Ind AS - 19 “Employee Benefits” (notified under the section 133 of the Companies Act 2013 (the Act)
D
read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provision
of the Act) are given below :
Contribution to Defined Contribution Plan, recognised as expense for the year is as under:
(` in crores)
March 31, 2021 March 31, 2020
Employer's Contribution towards Provident Fund (PF) and NPS 35.80 36.55
Employer's Contribution towards Employee State Insurance (ESI) 0.37 0.51
36.17 37.06
Defined Benefit Plan

he employees’ Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust which maintains its
T
investments with Bajaj Allianz Life Insurance Co.Ltd . The gratuity plan is governed by the Payment of Gratuity Act,
1972. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on
departure @ 15 days of last drawn basic salary for each completed year of service. The present value of obligation
is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation.
he following tables summarises the components of net benefit expense recognised in the statement of profit or loss and the
T
funded status and amounts recognised in the balance sheet for the respective plans:
a) Reconciliation of opening and closing balances of Defined Benefit obligation

(` in crores)
March 31, 2021 March 31, 2020
Present value of Defined Benefit obligation at the beginning of the year 108.26 91.09
Opening obligation transferred to group companies - (0.08)
Current service cost 14.90 13.36
Benefit paid (4.75) (8.03)
Remeasurement of (Gain)/loss in other comprehensive income
Present value of Defined Benefit obligation at year end 129.22 108.26
286
Introduction 01-13
b) Reconciliation of opening and closing balances of fair value of plan assets

(` in crores)
March 31, 2021 March 31, 2020
Fair value of plan assets at beginning of the year 89.18 71.63
Expected return on plan assets 6.50 5.91
Employer contribution 19.08 19.38
Remeasurement of (Gain)/loss in other comprehensive income
Return on plan assets excluding interest income 0.96 0.29
Integrated Report
Benefits paid (4.75) (8.03)
Fair value of plan assets at year end 110.97 89.18
c) Net defined benefit asset/ (liability) recognised in the balance sheet

(` in crores)
March 31, 2021 March 31, 2020
Fair value of plan assets 110.97 89.18
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Present value of defined benefit obligation (129.22) (108.26)
Amount recognised in Balance Sheet- Asset / (Liability) (18.25) (19.08)
Statutory Reports
Current portion {refer note 19(i)} (18.25) (19.08)
d) Net defined benefit expense (recognised in the Statement of profit and loss for the year)
(` in crores)
March 31, 2021 March 31, 2020
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Current Service Cost 14.90 13.36
Interest cost (net) 0.65 0.75
Net defined benefit expense debited to statement of profit and loss 15.55 14.11 Financial Statements
e) Remeasurement (gain)/ loss recognised in other comprehensive income

(` in crores)
March 31, 2021 March 31, 2020
142-309
Return on Plan assets excluding amounts included in net interest expense (0.96) (0.29)
Recognised in other comprehensive income 2.70 4.98
f) Broad categories of plan assets as a percentage of total assets

(` in crores)
March 31, 2021 March 31, 2020
Insurer managed funds 100% 100%
287

g) Principal assumptions used in determining defined benefit obligation

(` in crores)
March 31, 2021 March 31, 2020
Mortality Table (LIC) 2012-14 2012-14
(Ultimate) (Ultimate)
Discount rate (per annum) 6.76% 6.75%
Salary Escalation 9.00% 8.50%
Attrition Rate 7.00% 7.00%
h) Quantitative sensitivity analysis for significant assumptions is as below:

(` in crores)
March 31, 2021 March 31, 2020
Increase / (decrease) on present value of defined benefits obligations at the
end of the year
Discount Rate
Increase by 0.50% (4.37) (3.71)
Decrease by 0.50% 5.03 4.25
Salary Increase
Increase by 0.50% 4.90 4.17
Decrease by 0.50% (4.36) (3.72)
Attrition Rate
Increase by 0.50% (0.70) (0.49)
Decrease by 0.50% 0.80 0.55
i) Maturity profile of defined benefit obligation

(` in crores)
March 31, 2021 March 31, 2020
Within the next 12 months (next annual reporting period) 8.73 7.42
Between 2 and 5 years 57.65 50.45
More than 5 years 173.52 143.27
Total expected payments 239.90 201.14
j) The average duration of the defined benefit plan obligation at the end of the reporting period is 21.98 years (March 31,
2020: 22.77 years)
k) The plan assets are maintained with Bajaj Allianz Life Insurance Co.Ltd .
l) The Group expects to contribute ` 18.25 crores (March 31,2020 : ` 19.08 crores) to the plan during the next financial
year.
m) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation,
seniority, promotion and other relevant factors including supply and demand in the employment market. The above
information is as certified by the Actuary.
288
Introduction 01-13
n) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligations.
o) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined
benefit obligation as a result of reasonable changes in an assumptions occurring at the end of the reporting period
while holding all other assumption constraint. In practice it is unlikely to occur and change in some of the assumption
may be correlated. 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.
Integrated Report
p) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior
period.
6 Segment Reporting
The segment reporting of the Group has been prepared in accordance with Ind AS-108, “Operating Segment”
(specified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting
Standards) Rule 2015 (as amended from time to time) and other relevant provision of the Act). For management
14-44
purposes, the Group is organized into business units based on its products and services and has six reportable
segments as follows:
a) Operating Segments
Statutory Reports
Switchgears : Domestic and Industrial switchgears, electrical wiring accessories and capacitors.
Cables : Domestic cables and Industrial underground cables.
Lighting and Fixtures : Energy Saving Lamps (LED, Fixtures) and luminaries.
Electrical Consumer Durables : Fans, Water Heaters, Coolers, and Domestic Appliances
Lloyd Consumer : Air Conditioner, Television, Refrigerator and Washing Machine
Others : Industrial motors, Pump, Water purifier, Solar, Personal Grooming
45-141
b) Identification of Segments:
The Board of Directors 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 Financial Statements
or loss and is measured consistently with profit or loss in the financial statements. Operating segments have been
identified on the basis of the nature of product / services and have been identified as per the quantitative criteria
specified in the Ind AS.
c) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the
segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable
basis have been disclosed as “unallocable”.
142-309
d) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related
assets, borrowings and other assets and liabilities that can not be allocated to a segment on reasonable basis have
been disclosed as “unallocable”.
e) There is no transfer of products between operating segments.
f) There are no customers having revenue exceeding 10% of total revenues
g) No operating segments have been aggregated to form the above reportable operating segments.
289

Summary of Segmental Information

A Revenue
(` in crores)
March 31, 2021 March 31, 2020
Segment Revenue (Sales and other operating revenue)
Switchgears 1,460.88 1,339.38
Cables 3,180.17 2,994.19
Others 636.53 485.67
10,457.30 9,440.26
Inter Segment Sale - -
Total segment revenue 10,457.30 9,440.26
B Results
(` in crores)
March 31, 2021 March 31, 2020
Segment Results
Cables 403.78 332.12
Lloyd Consumer 74.12 (40.12)
Others 30.98 (25.01)
Segment operating profit 1,527.41 1,026.45
Reconciliation of segment operating profit to operating profit
Unallocated:
Other unallocable expenses net off 204.54 215.77
Other unallocable Income (187.36) (113.41)
Operating Profit 1,510.23 924.09
Finance costs {refer note 28} (72.68) (19.72)
Income tax expense {refer note 16} (393.24) (168.76)
Profit for the year from continuing operations 1,044.31 735.61
Profit/ (loss) for the year from discontinued operations - (0.26)
Profit after tax 1,044.31 735.35
C Reconciliations to amounts reflected in the financial statements

(` in crores)
As at As at
March 31, 2021 March 31, 2020
Segment Assets
Cables 1,085.62 909.28
290
Introduction 01-13
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Others 259.74 202.99
Segment operating assets 6,430.06 5,402.55
Reconciliation of segment operating assets to total assets
Cash and bank balance {refer note 10(C) and (D)} 1,652.79 1,132.53
Fixed deposits with financial institutions {refer note 10(A)} 306.30 -
Integrated Report
Other unallocable assets 463.11 538.37
Total assets 8,852.26 7,073.45
Segment Liabilities
Cables 377.63 521.89
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Others 122.50 101.85
Segment operating liabilities 2,324.67 1,902.04
Reconciliation of segment operating liabilities to total liabilities
Borrowings {refer note 14(A) and 18(C)} 492.20 40.50
Statutory Reports
Lease Liabilities {refer note 14(B) and 18(A)} 130.66 121.61
Deferred tax liability {refer note 16(d)} 339.11 286.52
Current tax liabilities (net) {refer note 20} 74.26 -
Other unallocable liabilities 315.06 411.22
Other non-current assets
Cables 2.46 3.48
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Others 0.43 1.19 Financial Statements
17.68 19.35
Unallocable assets 36.94 31.32
54.62 50.67
(` in crores)
March 31, 2021 March 31, 2020
Capital Expenditure
142-309

Cables 26.98 104.72
Others 4.22 4.45
185.98 332.62
Unallocable capital expenditure 24.98 38.68
210.96 371.30
291

(` in crores)
March 31, 2021 March 31, 2020
Depreciation and Amortisation Expenses
Cables 65.36 61.15
Others 12.20 11.27
248.91 217.97
Non-cash expenses (net) other than depreciation
Cables (0.58) 7.27
Others 0.24 0.35
25.92 25.78
Impairment allowance on other assets 1.10 0.03
27.02 25.81
Note: Non cash expenses other than depreciation includes loss on disposal of property, plant and equipment, bad debts and
impairment allowance for trade receivables and other assets considered doubtful.
(` in crores)
March 31, 2021 March 31, 2020
Segment Revenue by location of customers
The following is the distribution of Group's revenue by geographical market,
regardless of where the goods were produced.
Revenue-Domestic Market 10,067.40 9,112.17
Revenue-Overseas Market 389.90 328.09
10,457.30 9,440.26
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Geographical Segment assets
Within India 8,744.87 6,966.54
8,852.26 7,073.45
Geographical Non-current assets
Within India 3,427.32 3,473.79
3,434.96 3,486.37
Note: Non Current assets for this purpose excludes Contract assets, Non-current financial assets & Non-current tax assets.
(` in crores)
March 31, 2021 March 31, 2020
Geographical Capital Expenditure
Within India 210.95 371.30
Outside India 0.01 -
210.96 371.30
292
Introduction 01-13
Notes:
(i) Finance income and costs on financial assets are not allocated to individual segments as the underlying instruments are managed on
a group basis.
(ii) Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed
on a group basis.
(iii) Capital expenditure consists of additions of property, plant and equipment, Capital work in progress and intangible assets.
(iv) The Group has reviewed its reportable segments effective April 01, 2020. The product categories which are not strictly subscribing
to a specific product segment has been carved out into a new product segment ‘Others’ consisting of Motor, Pump, Solar, Personal
Grooming and Water Purifier businesses. The comparative figures for earlier periods have been accordingly reclassified.
Integrated Report
7 Related party transactions
The related parties as per the terms of Ind AS-24,”Related Party Disclosures”, (under the section 133 of the Companies
Act 2013 (the Act) read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time), as
disclosed below:-
(A) Names of related parties and description of relationship:

(i) Joint Venture
14-44
Jiangsu Havells Sylvania Lighting Co. Ltd. 50% ownership interest held by the Group
(Under Liquidation)
(B) Names of other related parties with whom transactions have taken place during the year :
Statutory Reports
(i) Enterprises in which directors are interested (iii) Key Management Personnel
QRG Enterprises Limited Shri Anil Rai Gupta, Chairman and Managing Director
QRG Foundation Shri Rajesh Kumar Gupta, Director (Finance) and Group CFO
Guptajee & Company Shri Ameet Kumar Gupta, Wholetime Director
QRG Central Hospital and Research Centre Ltd (till Shri Siddhartha Pandit, Wholetime Director
12th November,2020) (appointed w.e.f May 29,2019)
QRG Medicare limited Shri Sanjay Kumar Gupta, Company Secretary
The Vivekananda Ashrama
45-141
Aartas Care Private Limited
(iv) Other Related Parties
(ii) Post employee benefit plan for the benefited employees (a) Non Executive Directors
Havells India Limited Employees Gratuity Trust Shri Vijay Kumar Chopra (retired w.e.f
April 1, 2020)
Dr. Adarsh Kishore (retired w.e.f April 1,2020)
Shri Surender Kumar Tuteja (retired w.e.f
April 1,2020)
Smt. Pratima Ram
Shri Vellayan Subbiah (resigned on
October 22, 2020)
142-309
Shri Puneet Bhatia

Shri T V Mohandas Pai
Shri Surjit Kumar Gupta
Shri Jalaj Ashwin Dani
Shri U K Sinha
Shri B P Rao (appointed w.e.f. May 12, 2020)
Shri S S Mundra (appointed w.e.f.
May 12, 2020)
293

Shri Vivek Mehra (appointed w.e.f.

May 12, 2020)
Smt. Namrata Kaul (appointed w.e.f.
January 20, 2021)
Shri Ashish Bharat Ram (appointed w.e.f.
May 20, 2021)
(b) Others
Shri Rakesh Mehrotra
- Associate Director (appointed w.e.f
Jun 01,2020)
- H KHR Ventures LLP (Partner)
Shri Yogesh Kumar Gupta
- A ssociate Director (appointed w.e.f
Jun 01,2020)
- Eastern Distributors (Partner)
- Gupta Enterprise (Partner)
- YKG Enterprises (Partner)
- O.P. Gupta & Company (Partner)
- OPG Travels (Partner)
(C) Transactions during the year

(i) Sale of products (refer note (c) below)
(` in crores)
March 31, 2021 March 31, 2020
QRG Central Hospital and Research Centre Ltd - 0.01
QRG Medicare limited 0.04 0.23
O.P. Gupta & Company 1.78 -
1.84 0.24
(ii) Sale Return of products (refer note (c) below)

(` in crores)
March 31, 2021 March 31, 2020
0.14 -
(iii) Commission on sales (refer note (c) below)

(` in crores)
March 31, 2021 March 31, 2020
294
Introduction 01-13
(` in crores)
March 31, 2021 March 31, 2020
YKG Enterprises 3.40 -
56.27 13.12
Integrated Report
(iv) Rent / Usage Charges Paid
(` in crores)
March 31, 2021 March 31, 2020
QRG Enterprises Limited 21.41 22.83
(v) Reimbursement of expenses paid
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(` in crores)
March 31, 2021 March 31, 2020
Statutory Reports
OPG Travels 0.17 -
0.18 -
(vi) CSR Contribution

(` in crores)
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March 31, 2021 March 31, 2020
QRG Foundation 2.23 2.67
The Vivekananda Ashrama - 0.05 Financial Statements
2.23 2.72
(vii) Contribution to post employee benefit plan

(` in crores)
March 31, 2021 March 31, 2020
Havells India Limited Employees Gratuity Trust 19.08 19.38
142-309
(viii) Managerial remuneration

(` in crores)
March 31, 2021 March 31, 2020
Key Management Personnel
ESPP expense 2.86 7.40
295

(` in crores)
March 31, 2021 March 31, 2020
Non Executive Directors
Director sitting fees 0.45 0.35
Commission 0.90 0.90
Remuneration to other related parties
Salaries, wages, bonus, commission and other benefits 2.50 -
55.78 44.66
(D) Balances at the year end

(i) Amount Payables
(` in crores)
As at As at
March 31, 2021 March 31, 2020
QRG Foundation 0.27 -
O.P. Gupta & Company 0.00 -
14.97 3.79
a) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs in
cash. There have been no guarantees provided or received for any related party receivables or payables. For the
year ended March 31, 2021, the Group has not recorded any impairment of receivables relating to amounts owed
by related parties (March 31, 2020: ` Nil) .This assessment is undertaken each financial year through examining
the financial position of the related party and the market in which the related party operates.
b) All the liabilities for post retirement benefits being ‘Gratuity’ are provided on actuarial basis for the Group as a
whole, accordingly the amount pertaining to Key management personnel are not included above.
c) Transactions with related parties are reported gross of Goods and Service Tax.
8 Share based payments

The Group has in place following employee stock purchase plan approved by shareholders of the Group in compliance
with Securities and Exchange Board of India (Share Based Employee Benefits) regulators, 2014 :
(a) Havells Employee Long Term Incentive Plan 2014 : In accordance with this scheme, 110,949 (March 31, 2020 :
169,597) share options of ` 1 each were granted, out of which 109,259 (March 31, 2020: 169,195) share options of `
1 each were vested and allotted on April 14,2020 (March 31, 2020 : May 28, 2019) to eligible employees at ` 467.35
(March 31, 2020: ` 733.90) per share as contributed by these employees . As per the scheme, 50% of the shares are
under lock in period of 13 months and balance 50% for 2 years. Also as per the scheme, the Group is obliged to pay
50% of the contribution made by eligible employees as retention bonus over a period of two years in equal instalments.
Accordingly, a sum of ` 2.88 crores (March 31, 2020 : ` 4.89 crores) has been recognised as employee stock purchase
plan expense in note 27.
296
Introduction 01-13
(b) Havells Employee Stock Purchase Plan 2015 : In accordance with this scheme, 90,000 (March 31, 2020: 150,000)
share options of ` 1 each were granted, vested and allotted on April 14,2020 (March 31, 2020: May 28, 2019) at ` 467.35
(March 31, 2020: ` 733.90) per share to eligible employees as contributed by the Group. As per the scheme, 78% of
the shares are under lock in period of 13 months and remaining 22% are under lock in period for 2 years. Accordingly,
a sum of ` 4.21 crores (March 2020 :` 11.01 crores) has been recognised as employee stock purchase plan expenses
in note 27.
(c) Havells Employee Stock Purchase Plan 2016 : In accordance with the said scheme, 13,157 (March 31, 2020: 16,273)
share options of ` 1 each were granted to eligible employees with graded vesting in three years starting from 2020.
During the year, 10913 equity shares of ` 1 each (March 31, 2020 : 10729 equity shares) were allotted at ` 467.35 (March
Integrated Report
31, 2020 : ` 733.90) per share on April 14,2020. Accordingly, a sum of ` 0.50 crores (March 31,2020: 1.16 crores) has
been recognised as employee stock purchase plan expense in note 27 and balance outstanding of ` 0.64 crores (March
31,2020 : 0.64 crores) in note 13(B).
(i) Set out below is a summary of options granted and vested during the year under the plan
2020-21 2019-20
Summary of Stock Options Number of Stock Weighted average Number of Stock Weighted
Options exercise price per Options average exercise
14-44
share option price per share
option
Options outstanding at the beginning of the year 11,030 - 11,150 -
Options granted during the year 214,106 467.35 335,870 733.90
Statutory Reports
Options vested and exercised during the year 210,172 467.35 329,924 733.90
Options lapsed during the year 1,690 467.35 6,066 733.90
Options outstanding at the end of the year 13,274 - 11,030 -
The weighted average share price at the date of exercise of options exercised during the year ended March 31, 2021 was
` 467.35 per share (March 31, 2020 : ` 733.90)
(ii) Share options outstanding at the end of the year have the following expiry dates and exercise prices:
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Particulars March 31, 2021 March 31, 2020
Grant date March 31, 2020 May 28, 2019 May 28, 2019 May 10, 2018
Expiry date 2021-22 and 2021-22 2021-22 2020-21
2022-2023
Outstanding share options 8773 4501 9001 2029

Weighted average remaining 2 years 1 year 2 years 1 year
contractual life of options
outstanding at the end of the year
The fair value at grant date of options granted during the year ended March 31, 2021 was ` 458.69 per share (March 31,
2020 was ` 723.44 per share). The fair value at the grant date is determined using Black Scholes valuation model which
takes into account the exercise price, the terms of the options, the share price at grant date and expected price volatility of
142-309
the underlying shares, the expected dividend yield and the risk free interest rate for the term of the option.
(iii) The Model inputs for options granted:

Expected Price volatility of the Group's share 29.55% 28.72%
Expected Dividend Yield 0.75% 0.72%
Share price at the grant date ` 467.35 ` 733.90
Risk free interest rate 6.73% 6.73%
297

The expected price volatility is based on the historical volatility (based on remaining life of the options), adjusted for any
(iv)
expected change to future volatility due to publically available information.
(v) Expense arising from shared based payment transactions

Havells Employees Long Term Incentive Plan 2014 2.88 4.89
Total expense recognised in the statement of profit and loss account as a 7.59 17.06
part of employee benefit expense
9 Corporate Social Responsibility

s per provisions of section 135 of the Companies Act, 2013, the Group has to incur at least 2% of average net profits of the
A
preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a CSR committee has been
formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as under:
Details of CSR Expenditure:

(` in crores)
March 31, 2021 March 31, 2020
Contribution to QRG Foundation 2.23 1.77
Contribution to Ashoka University 4.00 4.00
Contribution to BML - 8.00
Others 4.24 6.55
Accrual towards unspent obligation in relation to
Ongoing Project 12.00 -
Other than ongoing Project - -
Total 22.47 20.32
Amount recognised in Statement of Profit and Loss 20.97 20.32
Amount required to be spent as per section 135 of the Act 20.97 20.29
Amount approved by the Board to be spent during the year 20.97 20.29
Amount spent during the year on
(i) Construction/ acquisition of assets 0.52 1.57
(ii) Contribution to Trust/Universities 4.00 14.72
(iii) On purpose other than above 5.95 4.03
Total Amount Spent 10.47 20.32
Amount yet to be spent 12.00 -
Total 22.47 20.32
Total 20.97 20.32
Details of ongoing CSR projects under Section 135(6) of the Act

Opening Balance Amount required to be Amount spent during the year Closing Balance
spent during the year
With the In Separate From From Separate With the In Separate
Group CSR Group’s CSR Unspent Group CSR
Unspent A/c bank account Unspent
account account
- - 16.00 4.00 - 12.00 -
298
Introduction 01-13
Details of CSR expenditure under Section 135(5) of the Act in respect of unspent amount other than ongoing projects
Balance Amount deposited in Specified Amount required to be Amount spent Balance
unspent as at Fund of Schedule VII of the Act spent during the year during the year unspent as at
April 01, 2020 within 6 months March 31, 2021
- - 6.47 6.47 -
Details of excess CSR expenditure under Section 135(5) of the Act

Balance excess spent Amount required to be Amount spent Balance excess spent
as at April 01, 2020 spent during the year during the year as at March 31, 2021
Integrated Report
- 20.97 22.47 1.50
10 Fair value measurements

Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments:

As at As at As at As at
Financial instruments by category
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Financial assets valued at amortised cost
Investment with financial institutions 306.30 - 306.30 -
Cash and bank balances (current) 1,652.79 1,132.53 1,652.79 1,132.53
Trade receivables 567.05 249.62 567.05 249.62
Statutory Reports
Other financial assets (current) 45.99 29.44 45.99 29.44
Other financial assets (non-current) 20.17 21.37 20.17 21.37
2,592.30 1,432.96 2,592.30 1,432.96
Financial Liabilities valued at
amortised cost
Trade payables 1,597.14 1,413.82 1,597.14 1,413.82
Borrowings (non-current) 393.65 - 393.65 -
Lease liability (current & non-current) 130.66 121.61 130.66 121.61
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Other financial liabilities (non-current) 1.31 1.13 1.31 1.13
Other financial liabilities (current) 687.36 549.83 687.36 549.83
2,810.12 2,086.39 2,810.12 2,086.39
The management assessed that cash and cash equivalents, trade receivables, trade payables, other current financial assets
and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.
The fair value of the other financial assets and liabilities is included at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods
and assumptions were used to estimate the fair values:
1) The fair value of unquoted instruments, other non-current financial assets and non-current financial liabilities is estimated
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by discounting future cash flows (DCF model) using rates currently available for debt on similar terms, credit risk
and remaining maturities. The valuation requires management to use unobservable inputs in the model, of which the
significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably
possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.
2) The fair values of the Group’s interest-bearing borrowings are determined by using DCF method using discount rate that
reflects the issuer’s borrowing rate as at the end of the reporting period . The own non-performance risk as at March 31,
2021 was assessed to be insignificant.
299

3) Long-term receivables/payables are evaluated by the Group based on parameters such as interest rates, risk factors,
individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this
evaluation, allowances are taken into account for the expected credit losses of these receivables.
4) Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation
technique:
Level 1: The fair value of financial instruments traded in active markets is based on quoted (unadjusted) market prices
at the end of the reporting period for identical assets or liabilities
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.
There are no transfers among levels 1, 2 and 3 during the year.
This section explains the judgement and estimates made in determining the fair value of financial assets that are:
a) Recognised and measured at Fair value
b) Measured at amortised cost and for which fair value is disclosed in financial statements
As at Level 1 Level 2 Level 3
March 31, 2021
Assets carried at amortised cost for which fair values
are disclosed
Other financial assets(current) 45.99 - - 45.99
Other financial assets (non-current) 20.17 - - 20.17
Liabilities carried at amortised cost for which fair

values are disclosed
Borrowings (non-current) 393.65 - - 393.65
Lease liability (current & non-current) 130.66 - - 130.66
As at Level 1 Level 2 Level 3
March 31, 2020
Assets carried at amortised cost for which fair values
are disclosed
Other financial assets(current) 29.44 - - 29.44
Other financial assets (non-current) 21.37 - - 21.37
Liabilities carried at amortised cost for which fair

values are disclosed
Lease liability (current & non-current) 121.61 - - 121.61
300
Introduction 01-13
11 Financial risk management objectives and policies

The Group’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Group’s operations. The Group’s principal financial assets include trade and
other receivables, and cash and cash equivalents that are derived directly from its operations.
The Group’s financial risk management is an integral part of how to plan and execute its business strategies. The Group
is exposed to market risk, credit risk and liquidity risk.
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the
management of these risks. The senior professionals working to manage the financial risks and the appropriate financial
risk governance framework for the Group are accountable to the Board of Directors and Audit Committee. This process
Integrated Report
provides assurance to Group’s senior management that the Group’s financial risk-taking activities are governed by
appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with
Group policies and Group risk objective. In the event of crisis caused due to external factors such as caused by recent
pandemic “COVID-19”, the management assesses the recoverability of its assets, maturity of its liabilities to factor it in
cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds.
These forecast and assumptions are reviewed by board of directors.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised as below:
(a) Market Risk
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Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such
as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings,
Statutory Reports
deposits, investments, and foreign currency receivables and payables. The sensitivity analysis in the following sections
relate to the position as at reporting date. The analysis exclude the impact of movements in market variables on: the
carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.
The sensitivity of the relevant Profit and Loss item and equity is the effect of the assumed changes in the respective market
risks. This is based on the financial assets and financial liabilities held as of March 31, 2021 and March 31, 2020.
(i) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates
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primarily to the Group’s operating activities (when revenue or expense is denominated in foreign currency). Foreign
currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Group
basis their assessment believes that the probability of the occurrence of their forecasted transactions is not impacted
by COVID‐19 pandemic. The Group evaluates exchange rate exposure arising from foreign currency transactions and Financial Statements
follows established risk management policies.
Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, AED, JPY, CNY and other
currencies including KES, NPR, CHF, LKR, MWK, SLL and GBP exchange rates, with all other variables held constant. The
impact on the Group profit before tax and equity is due to changes in the fair value of monetary assets and liabilities. Foreign
currency exposures recognised by the Group that have not been hedged by a derivative instrument or otherwise are as under:
(` in crores)
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Symbol Currency
EURO EUR € (0.12) (10.73) (0.11) 0.11
301

(` in crores)
Symbol Currency
EURO EUR € (0.17) (14.51) (0.15) 0.15
Note:
Figures in bracket represents payables
(ii) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s
long term debt obligation at floating interest rates. The Group’s borrowings outstanding as at March 31, 2021 and March
31,2020 comprise of long term loans .
Interest rate Sensitivity of Borrowings

With all other variables held constant, the following table demonstrates the sensitivity to a reasonably possible change
in interest rates on floating rate portion of loans and borrowings as on date.
March 31, 2021 March 31, 2020

Increase/decrease Impact on profit Increase/decrease Impact on profit
in basis points before tax and equity in basis points before tax and equity
Term Loan/External Commercial +0.50 (2.46) +0.50 (0.20)
Borrowing
-0.50 2.46 -0.50 0.20
(iii) Commodity Price Risk

The Group is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of industrial and domestic cable and other electronic items and therefore require a continuous supply
of copper and aluminium being the major input used in the manufacturing. To mitigate the risk of supply and price
fluctuations, Domestic and overseas sources are bench-marked to Optimize the allocation of business share among
various sources. The Group’s Board of Directors has developed and enacted a risk management strategy regarding
commodity price risk and its mitigation. The Group mitigated the risk of price volatility by entering Long Term & Short
term contracts for the Purchase of these commodities basis estimated annual requirements.
(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract,
leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and
from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.
(i) Trade Receivables and Contract Assets

Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control
relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit
rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored and any shipments to major customers are generally covered by Trade Receivable
buyout facility without recourse, letters of credit and other forms of security.
302
Introduction 01-13
An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method
based on provision matrix. The Group does not hold collateral as security. The Group evaluates the concentration of risk
with respect to trade receivables and contract assets as low, as its customers are located in several jurisdictions and
industries and operate in largely independent markets.
(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in
accordance with the Group’s policy. Investments of surplus funds are made in bank deposits and other risk free securities.
The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s
potential failure to make payments.
Integrated Report
The Group’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2021 is the carrying
amounts . The Group’s maximum exposure relating to financial instrument is noted in liquidity table below.
rade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as
T
debtor failing to engage in the repayment plan with the Group.
Financial assets for which allowance is measured using 12 months Expected Credit Loss Method (ECL)
14-44
(` in crores)
As at As at
March 31, 2021 March 31, 2020
Investment with financial institutions 306.30 -
Statutory Reports
Cash and cash equivalents (current) 354.62 267.70
Bank balances other than above (current) 1,298.17 864.83
Others Non-Current financial assets 20.17 21.37
Others Current Financial assets 45.99 29.44
2,025.25 1,183.34
Financial assets for which allowance is measured using Life time Expected Credit Loss Method (ECL)
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(` in crores)
As at As at
March 31, 2021 March 31, 2020
Trade receivables 567.05 249.62 Financial Statements
567.05 249.62
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks
The ageing analysis of trade receivables has been considered from the date the invoice falls due
(` in crores)
March 31, 2021 March 31, 2020
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Trade Receivables
Neither past due nor impaired 424.86 85.73
0 to 180 days due past due date 95.75 141.36
More than 180 days past due date 46.44 22.53
Total Trade Receivables 567.05 249.62
The following table summarises the change in loss allowance measured using the life time expected credit loss
model:
303

(` in crores)
As at As at
March 31, 2021 March 31, 2020
As at the beginning of year 44.87 26.64
Addition and utilization during the year 24.48 18.23
As at the end of year 69.35 44.87
(c) Liquidity risk

Liquidity risk is defined as the risk that the Group will not be able to settle or meet its obligations on time or at reasonable
price. The Group’s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements.
The Group closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate
source of financing through the use of short term bank deposits, short term loans, short term commercial papers and
cash credit facility. Processes and policies related to such risks are overseen by senior management. Management
monitors the Group’s liquidity position through rolling forecasts on the basis of expected cash flows. The Group assessed
the concentration of risk with respect to its debt and concluded it to be low.
Maturity profile of financial liabilities

The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting date
based on contractual undiscounted payments.
Borrowings 98.55 393.65 - 492.20
Other non-current financial liabilities - 1.31 - 1.31
Trade payables 1,597.14 - - 1,597.14
Borrowings 40.50 - - 40.50
Other non-current financial liabilities - 1.13 - 1.13
Trade payables 1,413.82 - - 1,413.82
12 Capital Management
or the purposes of Group’s capital management, Capital includes equity attributable to the equity holders of the Group and all
F
other equity reserves. The primary objective of the Group’s capital management is to safeguard its ability to continue as going
concern and to ensure that it maintains an efficient capital structure and maximize shareholder value. The Group manages
its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders or issue new
shares. The Group is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies
or processes for managing capital during the year ended March 31, 2021 and March 31, 2020 except for budgeting for cash flow
projections considering the impact of ongoing pandemic COVID - 19. The Group monitors capital using gearing ratio, which is net
debt divided by total capital plus net debt. Net debt is calculated as loans and borrowings less cash and cash equivalent.
(` in crores)
March 31, 2021 March 31, 2020
Loans and borrowings {refer note 14(A) and 18(C)} 492.20 40.50
Cash and cash equivalents {refer note 10(C)} (354.62) (267.70)
Net Debt 137.58 (227.20)
Equity / Net Worth 5,176.30 4,311.56
Total Capital 5,176.30 4,311.56
Total Capital and Net Debt 5,313.88 4,084.36
Gearing ratio (Net Debt/ Capital and Net Debt) 2.59% (5.56%)
Note: No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2021 and
March 31, 2020
304
Introduction 01-13
13 Earnings per share

(a) Basic Earnings per share
March 31, 2021 March 31, 2020
Profit attributable to equity holders of the parent company:
Continuing operations (` in crores) 1044.31 735.61
Discontinued operations (` in crores) - (0.26)
Integrated Report
1044.31 735.35
Weighted average number of equity shares outstanding during the year (Numbers) 626,005,520 625,731,426
(b) Diluted Earnings per share

March 31, 2021 March 31, 2020
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Profit attributable to equity holders of the parent company:
Continuing operations (` in crores) 1044.31 735.61
Discontinued operations (` in crores) - (0.26)
Statutory Reports
1044.31 735.35

the year for basic earning per share
Effect of dilution
Share options (Numbers) 13,380 14,929
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the year adjusted for the effect of dilution
Earnings per equity share(EPS) from continuing operations Financial Statements

(one equity share of ` 1/- each)
Basic EPS (`) ` 16.68 11.76
Diluted (EPS) (`) ` 16.68 11.76
Earnings per equity share(EPS) from discontinued

operations
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Basic EPS (`) ` - (0.00)

Diluted (EPS) (`) ` - (0.00)
Earnings per equity share (EPS) from continuing and

discontinued operations
Basic EPS (`) ` 16.68 11.76
Diluted (EPS) (`) ` 16.68 11.76
305

14 Dividend Paid and Proposed

March 31, 2021 March 31, 2020
Dividend declared and paid during the year:
Final Dividend paid for the year ended March 31,2020 of ` Nil per share of - 281.61
` 1 each (` 4.5 per share of ` 1 each for the year ended March 31,2019)
Dividend distribution tax on final dividend - 57.89
Interim Dividend for the year ended March 31, 2021, ` 3 per share of 187.80 250.32
` 1 each (` 4 per share of ` 1 each for the year ended March 31,2020)
Dividend distribution tax on interim dividend - 51.45
187.80 641.27
Proposed Dividends on equity shares: - (0.26)
Final Dividend recommended by the board of directors for the year ended 219.10 -
March 31, 2021 ` 3.50 per share of `1 each (March 31,2020: ` Nil) subject to
approval of shareholders in the ensuing annual general meeting.
Dividend distribution tax on above - -
219.10 -
Note: Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as liability
(Including Dividend Distribution Tax) as at reporting date.
15 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
group towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be
notified and the final rules are yet to be framed. The group will carry out an evaluation of the impact and record the same
in the financial statements in the period in which the Code becomes effective and the related rules are published.
16 Consequent to the disruption caused due to COVID-19, the Group has made an assessment as at March 31, 2021
of recoverability of the carrying values of its assets such as property, plant and equipment, intangible assets having
indefinite useful life, goodwill, inventory, trade receivables, and other current assets giving due consideration to the
internal and external factors. Further, on account of continued spread of COVID-19 disease in the country, the Group
has made timely and requisite changes in business model which has resulted in consistent growth across the product
segments during the year. The Group is continuously monitoring the situation arising on account of COVID-19 and will
make appropriate action required, if any.
17 The figures have been rounded off to the nearest crore of rupees upto two decimal places. The figure 0.00 wherever
stated represents value less than ` 50,000/-.
18 Note No.1 to 32 form integral part of the balance sheet and statement of profit and loss.
DIN: 00011892 DIN: 00002842
Date: May 20, 2021

Place: Delhi
306
Form AOC -1
Salient features of Financial Statements of Subsidiaries / Joint Ventures pusuant section 129 (3) read with Rule 5 of companies (Accounts) Rules, 2014
Part “A” : Subsidiaries
Sl Name of Subsidiary Country Reporting Reporting Currency Share Reserves Total Total Assets- Investment Turnover Profit Provision Profit OCI Total Proposed % of
No. Company period and Exchange rate as Capital & Surplus Assets Liabilities Liabilities other than before for after OCI Dividend Shareholding
for the on last date of financial Subsidiaries Taxation Taxation Taxation
subsidiary year in case of foreign
concerned subsidiaries
Currency Exchange
Rate
1. Havells Holdings Limited Isle of Man 31/03/2021 EURO 86.10 13.65 (9.80) 22.31 18.46 3.85 - - (0.10) - (0.10) 0.14 0.04 - 100%
2. Havells Guanzhou China 31/03/2021 CNY 11.17 0.45 9.18 12.23 2.60 9.63 - 37.94 6.07 1.30 4.77 0.29 5.06 - 100%
International Limited
Note:-
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
307
Part “B” : Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Joint Ventures
1 Name of Joint Ventures Jiangsu Havells Sylvania Lighting Co. Ltd.

2 Latest audited Balance Sheet Date December 31, 2020
3 Shares of Joint Ventures held by the company on 50% in paid in capital
the year end
Amount of Investment in Joint Venture ` 30.87 crores (Fair Value of ` 17.27 crores)
(Refer note no. 33(1)(c) of standalone financial statement)
Extend of Holding % 50%
4 Description of how there is significant influence Havells India Ltd. holds 50% of total capital contribution in
Jiangsu Havells Sylvania Lighting Co., Ltd.
5 Reason why the associate/joint venture is not The Joint venture is under liquidation as per terms agreed
consolidated with joint venture partner.
(Refer note no. 11(E)(b) of standalone financial statement)
6 Net worth attributable to shareholding as per ` 17.14 crores
latest audited Balance Sheet
7 Profit / (Loss) for the year
i. Considered in Consolidation 0
ii. Not Considered in Consolidation ` 1.47 crores
For and on behalf of Board of Directors
Anil Rai Gupta Ameet Kumar Gupta Rajesh Kumar Gupta Sanjay Kumar Gupta Pankaj Jain
Chairman and Director Director (Finance) Company Secretary Associate Vice President- Finance
Managing Director DIN: 00002838 and Group CFO FCS No.: F 3348
DIN: 00011892 DIN: 00002842
Date: May 20, 2021

Place: Delhi
308
Progress at a Glance of Last 10 Years- Havells India Limited (Standalone)
(` in crores)
Performance for the Year 2012 2013 2014 2015 2016 2017 2018 2019** 2020 2021
Turnover (Gross)* 3,830.56 4,506.37 5,031.11 5,557.79 5,775.42 6,585.96 8,260.27 10,067.71 9,429.20 10,427.92
Less: Excise Duty 214.95 281.38 311.42 319.10 397.10 450.70 121.70 - - -
Turnover (Net) 3,615.61 4,224.99 4,719.69 5,238.69 5,378.32 6,135.26 8,138.57 10,067.71 9,429.20 10,427.92
Profitability
Earnings Before Interest, 459.07 534.86 641.60 699.10 754.93 824.14 1,049.29 1,183.83 1,027.38 1,565.26
Depreciation, Amortisation and Taxes
Profit before Tax 373.81 457.18 595.10 646.25 909.03 768.83 1,014.70 1,146.10 901.73 1,431.58
Profit After Tax 305.43 371.39 478.69 464.94 712.03 539.04 712.52 787.34 733.03 1,039.64
Financial Position
Share Capital 62.39 62.39 62.39 62.44 62.46 62.49 62.51 62.55 62.58 62.60
Other Equity 1,545.93 1,807.83 2,067.46 2,313.35 2,891.21 3,211.09 3,676.64 4,129.65 4,242.23 5,101.85
Loan funds 128.58 108.78 195.52 83.46 44.40 198.05 108.00 94.50 40.50 492.20
Other Liabilities 854.44 817.38 1,020.99 1,146.23 1,004.65 1,374.60 2,487.31 2,468.27 2,267.56 2,658.64
309
Gross Block 975.32 1,108.91 1,188.23 1,349.03 1,328.52 1,452.27 3,111.48 3,635.37 4,142.81 4,286.37
Net Block 833.95 913.54 934.06 1,007.32 1,208.56 1,221.74 2,755.42 3,136.49 3,435.55 3,380.21
Total investments 775.07 791.92 882.52 1,011.76 309.61 227.41 41.70 1.66 1.63 1.63
Cash, Bank Balances and 136.21 246.54 626.16 522.34 1,365.21 1,937.53 1,526.17 1,287.71 1,106.92 1,931.04
Current Investments
Other Assets 901.72 906.28 955.36 1,107.43 1,205.60 1,573.31 2,218.12 2,699.80 2,503.76 3,507.34
Earning per share

EPS-as reported 24.48 29.76 38.36 7.45 11.40 8.63 11.40 12.59 11.71 16.61
EPS-adjusted for bonus issue/split 4.90 5.95 7.67 7.45 11.40 8.63 11.40 12.59 11.71 16.61
Note: The financial results summary for financial years 2015-16 and onwards are prepared in accordance with Ind-AS and financial results for other financial years are prepared as per the
prevailing GAAP.
*Turnover gross is after deducting turnover discount , incentive and rebates.
** The Company has received approval from the NCLT on January 31, 2020 in respect of a Scheme of Amalgamation, among the Company and its wholly owned subsidiaries namely; Promptec
Renewable Energy Solutions Private Limited, Havells Global Limited, Standard Electrical Limited, LLOYD Consumer Private Limited. Appointed date as per scheme is April 01, 2018 and
accordingly the figures for FY 2018-19 have been restated.
NOTES
NOTES
NOTES
Regd. Office: 904, 9th Floor, Surya Kiran Building, K.G. Marg,
Connaught Place, New Delhi - 110 001 (India)
Corp. Office: QRG Towers, 2D, Sector 126, Expressway, Noida - 201 304 (U.P.)
Ph.: +91-120-3331000 | Fax: +91-120-3332000 | Email: marketing@havells.com
www.havells.com
Investors Email: investors@havells.com
Consumer Care No.: 08045771313 (Havells), 08045775666 (Lloyd), 971177 3333 (WhatsApp)
Join us on Facebook at www.facebook.com/havells
and share your ways to save the planet!
CIN: L31900DL1983PLC016304
HAVELLS
CONSISTENT PERFORMANCE
SUSTAINABLE PROGRESS
9th Sustainability Report 2020-21

We are Havells
Havells India Limited (Havells) is one of India’s largest FMEG* and consumer
durable companies. Our offerings include cables, switches and switchgear, small
domestic appliances, fans, water purifiers, water heaters, personal grooming
products, LED lighting products for consumer and professional needs, and
white goods such as air conditioners, refrigerators, washing machines and
LED televisions.
*Fast-Moving Electrical Goods
Vision Mission
To be a globally recognised corporation for To achieve our vision through business ethics, global
excellence, governance, consumer delight and reach, technological expertise, building long-term
fairness to each stakeholder including the society relationships with all our associates, customers,
and environment we operate in partners and employees
Values
Customer Delight Leadership by Example
A commitment to surpass our customer A commitment to set standards for our business and
expectations transactions based on mutual trust
Integrity & Transparency Pursuit of Excellence

A commitment to be ethical, sincere and open in A commitment to strive relentlessly, to constantly
our dealings improve ourselves, our teams, our services and
products so as to become the best-in-class
Product portfolio
Switchgears Cables Lighting & Fixtures
Electrical Consumer Durables Lloyd Consumer Others
Read more on 6-7
HAVELLS INDIA LTD.

Sustainability highlights
IN TR OD U C TI O N
Growing business, despite headwinds Congenial work culture
INR 10,428 Crores India Top 50 – Best Companies
Revenue to Work For 2020
(11% rise over FY 2019-20) Recognition by Great Place to Work
New products launched

Crabtree smart sockets
Refrigerators with Bactshield technology
50% 32,000+
Reduction in lost Hours of training
Dishwashers
time injury frequency imparted for skill
8-step smart fan regulator
rate (LTIFR) development, health
Antibacterial switches
(from FY 2019-20) and safety, etc.
Intelli-Logic ACs
Contribution towards community development 60,000+

INR 21 Crores Beneficiaries of
CSR Spend CSR-Sanitary pads
distribution initiative
Focused strategies drive environmental care

INR 2 Crores
Environmental expenditures
22% 5% 5.60 MW
Decrease in freshwater Decrease in greenhouse gas (GHG) Solar power generation
consumption since FY 2019-20 emissions from FY 2015-16 capacity as of march 2021
94% <5% 5 Lakhs

Recycled water consumed Waste going to landfill Tree saplings planted
Celebration of sustainability achievements Transparent disclosures lead to global

Gold-rated green building award and domestic industry recognitions
(for Alwar Wire Plant and Ghiloth AC Manufacturing Plant) 69
For Green Factory Building Rating System by Indian Green DJSI* score
Building Council (industry average is 41)
*Dow Jones Sustainability Indices (DJSI)
Economic and governance Social Environment
Note: All numbers showcased as highlights/call outs in this report are rounded off to
maintain design aesthetics.
9 TH SUSTAINABILITY REPORT FY 2020-21
What’s inside
01-25 50-61
Who we are How we care for the
01 Consistent performance
environment
Sustainable progress
50 Improving our performance on
02 Approach to reporting environmental factors
04 Delivering excellence across the world 52 Minimising environmental footprint
06 Making innovative and smart products 54 Contributing to climate
08 Expanding presence across markets change mitigation
10 Message from the Chairman and 56 Energy efficiency at every step
Managing Director 58 Making every drop count
14 Responding to a global crisis with agility 60 Optimising resource use,
16 Shaping a better future for everyone reducing waste
18 Sustainability model
20 Strengthening bonds with stakeholders
22 Prioritising what matters most
26-33 62-75
How we balance ethics, risks How we manage
and values at work our relationships
26 Upholding the highest 62 Building enduring bonds
governance standards 64 Aligned to customer needs
28 Ensuring accountability at all levels and aspirations
30 Proactive response to challenges 66 Promoting a culture of collaboration
32 Zero tolerance to non-compliance 70 Optimising the value chain
72 Driving inclusive development agenda
34-49 76-86
How we generate Annexures
sustainable value 76 GRI mapping
34 Growing responsibly with innovation 84 Assurance statement
36 Sustaining profitable growth
amid headwinds
38 Smart, safe and sustainable products
42 Intelligent solutions simplify life
46 Enhancing efficiency, optimising costs
HAVELLS INDIA LTD.

1
WH O WE A R E
CONSISTENT
PERFORMANCE
SUSTAINABLE
PROGRESS
At Havells, our sustainability agenda
is driven by the triple bottom line, i.e.,
economic, social and environmental.
As a leader in the fast-moving electrical
goods (FMEG) sector, we are setting
benchmarks with path-breaking
innovation while creating a wide and
vibrant ecosystem that has no parallels
in the industry.
We define our strategic objectives In a year of unprecedented challenges,

to deliver sustained value for our we managed to deliver a resilient
stakeholders while delivering meaningful performance, which testifies to the
progress for the society at large. sustainability of our ecosystem.
Our focus on energy and resource Together, with our stakeholders, we
efficiency, as well as product quality stood in solidarity with the nation and
and safety reduces our environmental the world to continue on the path of
footprint and enables our customers to sustainable progress, with renewed
meet their sustainability goals. confidence and reinforced commitment.
Our sustainability efforts are not limited

within the organisation but spans the
entire value chain – promoting optimal
use of resources. Today, we are a ‘water
positive company’ and are aiming to
be ‘wood and paper neutral’ in the
near future.

2
Approach to reporting
This sustainability report is prepared in accordance with the GRI Standards
Comprehensive option. It presents our material issues and how we are
contributing towards achieving those and aligning them with the United
Nations Sustainable Development Goals (UN SDGs). We are a signatory to
the United Nation Global Compact (UNGC). This sustainability report titled
‘Consistent performance Sustainable progress’, communicates our sustainability
commitment, initiatives and performance on different environmental, social and
governance aspects during FY 2020-21.
Reporting scope and boundary

Our 9th sustainability report provides information for the
period between 1st April 2020 to 31st March 2021
(FY 2020-21). The last sustainability report was released for
FY 2019-20. The reporting boundary for our disclosures,
unless otherwise stated, covers all operations of Havells
India Limited, its seven manufacturing locations and one
corporate office.
Performance indicators are provided based

on the following units in India:
Corporate office
5
7 1. Noida (Uttar Pradesh)
6 8
3 1
4 Production facilities
2
2. Alwar (Rajasthan)
3. Neemrana (Rajasthan)
4. Ghiloth (Rajasthan)
5. Baddi (Himachal Pradesh)
6. Faridabad (Haryana)
7. Haridwar (Uttarakhand)
8. Sahibabad (Uttar Pradesh)
HAVELLS INDIA LTD.

3
WH O WE A R E
External assurance Key icons used in this report
This sustainability report is externally assured by
M/s. KPMG India. The information on Business
Performance is derived from our audited financial
statements for FY 2020-21. The assurance is in
accordance with the ‘limited assurance’ criteria of the
International Standards on Assurance Engagements
Economic and governance
ISAE 3000 (Revised). Details of the assurance
approach, methodology, and observations are
presented in the assurance letter.
84-86
Social
Data integrity
We collected and analysed relevant data to support our
disclosures for this sustainability report. We exercised
strict internal controls to collect and analyse the relevant
data that we share here to support our disclosures Environment
captured through our integrated data management
system. Our aim is to provide information that is
accurate and reliable, and at the same time unbiased,
comparable, and comprehensible. Wherever applicable,
we have taken care to cite any significant limitations in
the information. Read more on
Materiality
We conduct a thorough materiality assessment every
three years, with the last one held in 2018. As part of the
materiality process, we engage with both internal and
external stakeholders to ascertain their expectations
and aspirations and how these factors impact our
business. The identification of material topics helps us
frame our strategies and guide us towards making the
relevant disclosures.
Precautionary approach
We follow a precautionary approach towards minimising
our business risks and the impact of our business
operations on the environment. We have implemented
environment, health and safety (EHS) management
systems in our plants to address issues related to these
subjects. We get our EHS management system audited
on a regular basis by independent auditors.
Feedback
Any queries on this report or about the sustainability
agenda of the Company may please be sent by email
to: sustainability@havells.com

4
Delivering excellence across the world

Havells manufactures and supplies an expansive product range for consumers
across India and 60+ countries worldwide. Synonymous with excellence and
precision, our products enjoy market dominance and are a preferred choice for
diverse individual and industrial consumers.
Key facts
14 21 5
Manufacturing units Product verticals Brands
2 6-7 7
2 5,700+ 15,500+
Major research centres Permanent employee strength Direct dealer/partners
43 66-69 70-71
HAVELLS INDIA LTD.

5
WH O WE A R E
Shareholding pattern (%) Indian Promoters 59.50
(as on 31st March 2021)
Did you know?
Mutual Fund 2.39
and Alternative
Investment Funds
We are rated as one of the Foreign 24.91
top‑most brands for miniature Portfolio Investors
circuit breaker (MCBs) in India Bank, Financial 5.50
We are among the lowest-cost Institutions and
MCB manufacturers Insurance Companies
Central Government/ 0.19
Our Sahibabad plant has
State Government(s)
India’s first automated magnetic
contactor assembly line Indian Public 6.53
Non-Resident Indians 0.42
Our Alwar plant, which is Corporate Bodies 0.55
completing its 25 years, is
Employee Benefit Trust 0.01
India’s largest integrated cable
manufacturing plant
Credit ratings
Trade body Long-term Bank facilities (CC and TL): CARE AAA
associations Short-term Bank facilities: CARE A1+
Indian Electrical and Electronics

Manufacturers Association
(IEEMA)
Electric Lamp and Component Ranked among the top 10 in DJSI rating
Manufacturers Association of
We have been consistently ranked among the top 10 companies
India (ELCOMA)
in the industry in Dow Jones Sustainability Index’s (DJSI) ESG
Consumer Electronics and assessment, since participating three years back. During the
Appliances Manufacture year, we ranked globally 7th in the DJSI index for our sector.
Association (CEAMA) For FY 2020‑21, we also improved our overall ESG score and
debuted in the S&P Global’s Yearbook.
Indian Fan Manufacturers
Association (IFMA)
Water Quality Association
Confederation of Indian
Industries (CII)
7th
Global DJSI rank for
PHD Chamber of Commerce FY 2020-21 in our sector
and Industry
National Safety Council
UNGC association
We are also signatory to the ten principles of United Nations Global Compact
(UNGC) pertaining to human rights, labour, environment and anti-corruption.
This affiliation influences our policies, strategies and decisions.

6
Making innovative and smart products

We deliver next-generation products and services, with latest
technologies to delight our consumers.
Product range
Switchgears Lighting & Fixtures

Switches Professional luminaires
Domestic switchgears Consumer luminaires
Industrial switchgears
Capacitors
Automation and control
Cables Electrical Consumer Durables

Power cables Fans
Flexible cables Small domestic appliances
Water heaters
HAVELLS INDIA LTD.

7
WH O WE A R E
Exciting and innovative
offerings
At Havells, we are building one of the
most exciting and innovative product lines.
With our steady investments in research and
development, emphasis on exploring new
product opportunities and focus on delivering
best-in-class products, we are building a
Lloyd Consumer comprehensive and complementary product
portfolio. During 2020, we continued to launch
Air conditioners
new-age products such as ‘Carnesia-I’ fans
Refrigerators that auto adjust fan speed based on room
Washing machines temperature and humidity, antibacterial switches,
Televisions refrigerators with Bactshield technology, alkaline
water purifier, Intelli-Logic ACs, smart sockets
Other small domestic appliances that allow mobile or voice commands on
ordinary devices and others.
38-39
Brands that find resonance

across markets
The Havells brand ranking rank on the Brand
Finance Brandirectory index improved from
four places to 80th spot in 2020. Our other
brands (Crabtree, Standard, REO and Lloyd)
also enjoy high recall and loyalty in several
Others domestic and international markets. Brands from
the house of Havells echo across markets
Motors
due to our best‑in‑class product quality and
Solar customer services.
Pump
Water purifiers
Personal grooming products

8
Expanding presence across markets

During the year, we penetrated further across markets, offering our customers
high-quality, world-class products and services.
In line with our overall commitment of ‘making in India and taking it to the
world’, we increased our sales presence from around 40 countries in the
previous year to over 60 nations across Asia, Africa and Europe, foraying
into the Americas during FY 2020-21.
Market-wise revenue mix (%)
40 Africa
60+
20 Middle East
19 Indian subcontinent
International markets 18 South East Asia

reached during FY 2020-21 2 Europe
1 The Americas
Map not to scale, only for illustration purpose.
HAVELLS INDIA LTD.

9
WH O WE A R E
Our international presence
Africa & Oceania
Burkina Faso Niger

Cameroon Nigeria
Côte d’Ivoire People’s Republic of the Congo
Democratic Republic of Senegal
the Congo Sierra Leone
Egypt Somalia
Ethiopia South Africa
Fiji Sudan
Gambia South Sudan
Ghana Tanzania
Kenya Togo
Liberia Tunisia
Malawi Uganda
Mauritius Zambia
Morocco Zimbabwe
Mozambique
South Asian Association Association of Southeast

for Regional Cooperation Asian Nations
(SAARC) countries (ASEAN) countries
Bangladesh Kazakhstan
India Malaysia
Maldives Myanmar
Nepal Phillippines
Sri Lanka Russia
South Korea
Thailand
Vietnam
Middle East Europe (OEM) The Americas
Bahrain Saudi Arabia Finland Columbia

Iraq Syria Greece Chile
Jordan UAE Poland Dominican Republic
Kuwait Yemen Portugal Mexico
Lebanon Spain Paraguay
Oman Turkey Peru
Qatar United Kingdom United States of America

10
Message from the Chairman

and Managing Director
11
WH O WE A R E
Dear Valued Stakeholders,
I am delighted to present the

9th edition of your Company’s
Annual Sustainability Report
for FY 2020‑21. The report is
a testimony to our continuous
efforts towards embracing
and implementing a balanced
approach towards economic,
Besides, sustainability is not confined to
environmental and social environment, social and governance at
impact in our day‑to-day Havells. It is in each aspect of the organisation
business operations. whether it is quality of the product or efficient
utilisation of resources in the manufacturing
A challenging year process. For instance, we help customers
build sustainable homes by creating
The year was indeed a unique one as the
COVID-19 contagion ravaged socio‑economic
long‑lasting, high‑quality switchgear and
developments globally. As we live through wires, which are lifeline of electric distribution
these unprecedented times, for once it felt like systems in buildings.
the worst is over but unfortunately the second
wave of COVID has gripped the country with
even more ferocity. During this protracted Anil Rai Gupta
pandemic, I wish that all in the Havells family Chairman and Managing Director
and every Indian stay safe and follow COVID
safety protocols.

12
Our response
At Havells, we relied on agile, nimble and
pragmatic approach to the unprecedented and
unforeseen pandemic. In the initial period, we
3,00,000+
Meals distributed through local
focused on safety of our employees, dealers
government’s food initiative for
and other stakeholders through effective and
the underprivileged groups of
constant communication. We held online
the society
townhalls with our workforce, dealers and
vendors to assuage their anxieties and assuring
our support in such difficult times. We invoked
the spirit of togetherness, hope and humanity to
be helpful to each other.
I would like to express my sincere gratitude to Delivering responsibly

the entire team for their exemplary contribution
We believe that climate change is an alarming
and efforts. I would single out our factory staff,
situation for the entire world with concerns such
the frontline staff, supervisors and supply chain
as: increase in average global temperature,
team for their inexhaustible energy to keep going
erratic weather and rainfall patterns, forest fires,
and deliver against all odds. They are Havells’
heatwaves, depleting water bodies and others.
COVID WARRIORS and I would thank them on
We strive to include environmental sensibilities
behalf of yourselves.
into our products, factories and buildings.
Our products are increasingly oriented towards
Resilience tested well-being like low-noise mixer grinder, low water
discharge in water purifiers, air‑conditioners
The core of our sustainable business performance and fans with air purifiers. Similarly, our
focuses on generating enduring value for factory buildings deploy materials which are
our stakeholders, whilst being conscious of eco-sensitive and consume less energy.
our environment, safety of our employees, Havells’ Wire Plant, Alwar and Air-Conditioner
business partners and customers, system and Plant, Ghiloth (both in Rajasthan) have been
operational excellence and contributing to recognised and certified as Gold-rated Green
community welfare. As a sustainable business Building by Indian Green Building Council
house, I am happy to report that continuing our (IGBC) for implementing the best green building
status, FY 2020-21 saw another year of ‘zero design and development features.
occupational fatality’ at Havells.
Besides, sustainability is not confined to
As business gradually gained traction post environment, social and governance at Havells.
the lockdown, we were able to fulfil consumer It is in each aspect of the organisation
demands through our vast distribution network whether it is quality of the product or efficient
supported by continuity in product supply utilisation of resources in the manufacturing
through in-house production. We provided digital process. For instance, we help customers build
solutions to our trade partners and consumers sustainable homes by creating long‑lasting,
who were able to access our service team high-quality switchgear and wires, which
through multiple mediums and were provided are lifeline of electric distribution systems
solutions through audio and video assistance. in buildings.
HAVELLS INDIA LTD.

13
WH O WE A R E
Working steadily towards conservations and distributed 60,000+ reusable sanitary pads to
management of water resources, we have been girls across the country. Working on our efforts
a water positive organisation since FY 2015‑16. to underline environmental sustainability and
We are constantly focused on enhancing grow as a wood and paper neutral company,
water recharging capacity through rainwater we planted more than 5 Lakhs tree saplings
harvesting coupled with conserving water during the year at Bhopal, Madhya Pradesh
consumption at each manufacturing plant. and Neemrana, Rajasthan. With our responsible
During the year, we curtailed our water use by efforts we have been able to align our ESG
~36% compared to FY 2017-18. activities to the UN-Sustainable Development
Goals for a better future.
Augmenting our renewable energy consumption,
we are installing an additional 1.95 MW roof-top
solar plant at our Alwar unit. It would increase Way forward
our solar power generation capacity to 7.55 MW,
We believe what’s good for society is good
thereby enhancing on our efforts to reduce
for the business. Growth with sensitivity,
our carbon emissions. It is expected to be
transparency and integrity would remain
commissioned during FY 2021-22.
leitmotif of Havells’ business aspirations. We will
deploy technology, including big data, robotics
We direct less than 5% of our wastes to landfills.
and artificial intelligence to stay ahead to the
This is accomplished by following the principles
competitive and efficiency curve.
of 5Rs – reduce, reuse, recycle, recover and
residual management. At present, ~94% of our
‘PHYGITAL’ is a new reality where physical
hazardous waste undergoes recycling.
(offline channels) co-exist with the digital
(online) channels. The alternate channels
It is through these continuous efforts that we
(Online, Modern Food Retail, Canteen and
have consistently maintained our listing on
others) are expected to gain relevance
S&P Global Dow Jones Sustainability Index,
over the years. Havells has nurtured strong
successfully making it to S&P Global Year Book
relationship with these channels which would
in 2021.
reflect in additive growth in the medium term.
Delivering our responsibility to society, we
In these challenging times of COVID second
team up with our community members to help
wave, we dedicate ourselves to the safety and
strengthen our corporate citizenship initiatives.
welfare of each stakeholder and the society.
Our activities focus on delivering quality
I urge you to follow COVID-appropriate behavior.
education, infrastructure, nutrition and hygienic
I wish you a healthy and sustainable future.
sanitary conditions for government schools.
We administer one of the largest corporate
mid‑day meal programmes across India and
Regards,
focus on environmental and cultural preservation
initiatives. During the pandemic, under our Anil Rai Gupta
flagship programme, Mid-day Meal Distribution, Chairman and Managing Director
we distributed over 3 Lakhs meals throught the
local government’s initiative of food distribution
to the unserved people. Also, through our
intervention on Sanitation and Hygiene, we

14
Responding to a global crisis with agility

COVID impacted every aspect of human life. At Havells, we consider it our duty
to serve humanity throughout this phase. During the year, we undertook several
measures to help and safeguard our different stakeholder groups, including:
Employees
Began work from home for our corporate team colleagues
Resumed operations and focused on the safety of our manufacturing

team with constant emphasis on hygiene and sanitisation at the COVID
workplace according to government directives
Engaged with our people constantly to assuage their fears and build
vaccine for
deeper connect
Team Havells
Encouraged our people to follow all social distancing and hygiene
norms, especially when dealing with their families and friends During the year, we also
Initiated Samvaad with the help of a health and wellness professional,
launched an initiative to
inspire our people to get
for bringing different perspectives of life for our people and
vaccinated for COVID-19.
their families
Under this programme,
Started Havells Music Studio, Lockdown Engagement Video and other Havells will reimburse
such light-hearted activities to promote increased engagement level every employee, who
of employees gets vaccinated, whether
permanent or contractual.
66-69
HAVELLS INDIA LTD.

15
WH O WE A R E
Channel partners
Extended full support to vendor and dealers
during the pandemic
Engaged regularly through the virtual
platforms to understand and cater to
their expectations
Deepened engagement and coordination
with the channel partners with respect to
specific initiatives
70-71
Customers
Increased the warranty period of our products
Utilised Whatsapp calls and videos to help

customers register their issues
Introduced Do it Yourself (DIY) maintenance
videos to help customers care for
their products
Organised online grooming classes by
celebrity stylists
64-65
Communities
Distributed 3,00,000+ meals in Alwar,
Rajasthan prepared in our state-of-the-art
centralised kitchen hygienically
Donated ceiling fans to COVID Care centres
Distributed 60,000+ reusable sanitary pads

to girls across the country
72-75

16
Shaping a better future for everyone

Sustainability has always played a significant role in steering Havells’
business decision-making. We remain dedicated to holistic growth, with
a focus on the triple bottom line. We are using technology and innovation
to reduce our impact on the environment, strengthen partnerships,
enhance social responsibilities and improve people practices.
Sustainability focus areas
Value Community
creation development
Lean balance sheet Increase in CSR beneficiaries
Net cash positive Expand green cover
Cost rationalisation Increase the number of bio-toilets
Governance
Risk management
framework
Compliance

Conducting supplier
assessment for
critical suppliers
Environmental care
Multi-fold water positivity
Reduce specific energy consumption
Decrease in waste to landfill
HAVELLS INDIA LTD.

17
WH O WE A R E
Sustainability governance Although, we believe every employee is a crucial
part for our organisational sustainability framework,
Sustainability at Havells is steered from the Boardroom.
a dedicated department of corporate sustainability is
Our policies are directed towards developing business
supported by designated sustainability champions at
strategies that influence our sustainability. At Havells,
our various locations. The entire team works together to
our value creation and sustainability agenda is driven
collect, monitor, analyse and improve different non-financial
by our top management that provides overall policy and
performance parameters such as reducing water and
design interventions based on inputs from all levels of
energy consumption, waste management and others.
the organisation.
Sustainability governance model
Board
Feedback and Policy and

reports resource support
Corporate
Sustainability
Department
Sustainability champions
Alwar Neemrana Ghiloth Baddi Faridabad Haridwar Sahibabad
Internal sustainability audits: Bi-annual
External sustainability audits: Annual

18
Sustainability model
Our sustainability model focuses on stakeholder value creation through identification
of the Havells’ material topics, developed in consultation with the stakeholders.
The strong foundation of governance with ethics, integrity, transparency help us
steer our way forward.
Waste generated Water withdrawal

POLICIES & and disposed and impact
PROCEDURES
Health and safety

MATERIAL TOPICS
STRATEGY
Talent
ESG
management
RESOURCE
INPUT
Technology and
digital transformation
STAKEHOLDER Research and Brand salience

ENGAGEMENT development
HAVELLS INDIA LTD.

19
WH O WE A R E
SUSTAINABILITY
Emissions Energy
efficiency
STAKEHOLDER
VALUE
CREATION
T
EN
M
N
SO
RO
C
ENVI
IAL
BUSINESS LONG-TERM
SYSTEM PERFORMANCE
GO
VERN NCE
A
SOCIETAL
IMPACT
Economic Customer and other

performance stakeholders’ delight

20
Strengthening bonds with stakeholders

We are building enduring relationships with our internal and external stakeholders
and connecting with them regularly to understand their perspective. Our stakeholder
identification and prioritisation process is based on the tenets of inclusivity, materiality
and responsiveness.
We continuously engage with our stakeholders through surveys, conferences, face-to-face meetings, email/telephonic
communications and others. Simultaneously, we ensure that their suggestions and comments are addressed. During the
year, we primarily used online/virtual platforms to connect with them.
Stakeholder Communication Activities during

Relevance to Havells Engagement topics
group channels FY 2020-21
Shareholders/ Provide financial Credit rating Financial results Routine disclosures

investors capital for the Sustainable declaration (quarterly) as per statutory
business and can business model Annual General requirements
influence business Transparency Shareholders Meetings
decisions with Governance Disclosure tools,
focus on ESG and Earnings per share including Annual
sustainable finance Exponential growth Reports, Sustainability
Cost rationalisation Reports, website
Complaints and others
and grievances
Employees Core of operations, Scope of learning Intranet/emails, etc. Regular online

business innovation and growth In-house newsletters sessions to motivate
and design, Remuneration Training programme people
and productivity and benefits Employee surveys Online learning
depend on Equal opportunities Rewards recognitions and development
their collective Promotion of programmes
knowledge occupational health Samvaad and
and experience and safety Havells Music Studio
Customers Their purchase Create better products Customer servicing Online engagement
decisions impacts and services and feedback collation through social
business, making Respond to complaints Marketing activities media platforms
it imperative to and grievances Online engagement
constantly engage Meet quality requirements through the website
with them to Provide information on and social media
understand their technical and pricing
requirements queries on time
and aspirations
HAVELLS INDIA LTD.

21
WH O WE A R E
Stakeholder Communication Activities during
Relevance to Havells Engagement topics
group channels FY 2020-21
Dealers Partners in Building long-term Dealer meets Frequent virtual

progress and business relations Dealer surveys meets with
provide direct Effective Welfare schemes the dealers
market feedback information dissemination Training and education Ensured timely
on various aspects Technical knowledge Dealer feedbacks and safe supply
of a product exchange and of products
other collaborations
Contract terms
and conditions
Vendors On-time delivery Building long-term Contract negotiations Samanvay – virtual

of quality raw business relations Supplier Code of vendor meet with
materials depend Effective information Conduct policies and 60+ vendors
on them dissemination standards
Technical knowledge Supplier meetings
exchange and Sustainability
other collaborations assessment
Contract terms Vendor due diligence
and conditions Pre-qualification
engagement
Communities Social licence Help in enhancing Social contribution/ Delivered 3,00,000+

to operate standard of living with CSR activities meals in the
better education and Public hearings communities we
health, hygiene and Community impact serve during
sanitation facilities assessment surveys the lockdown
Improved opportunities Complaints and Continue to
to gain employable grievance mechanisms supply dry rations
skills and scope for to mid-day
income generation meal beneficiaries
Bankers and Offer credit and Credit rating Credit rating Periodic sessions
other financial are influenced Sustainable Quarterly reports and engagement
institutions by government business model and updates in relation to credit
policies on Governance Compliance visits ratings, quarterly
industry segments and audits disclosures
Analyst meets and others
Regulators Rules and Compliance Regular Compliance refresh

and statutory regulations set Disclosures on compliance report of Acts and Rules by
bodies by them are to aspects defined by Statutory and third party
be followed the government internal audit
Media Provides regular, Important announcements Media meets Conducted

credible progress meant for mass Press conferences various online
information stakeholders Press releases media campaigns,
to stakeholders Management interviews especially on social
media platforms like
Facebook, Instagram
and others

22
Prioritising what matters most

Our material topics identification process, a comprehensive stakeholder engagement
procedure was conducted in 2018, helped us identify our material topics and
understand our obligations towards our stakeholders.
Five-step assessment methodology
Materiality
1 assessment
methodology
5
Identify Strategise
Used surveys, Incorporate these
meetings and other
interactions with our
2 4 factors on the broader
business strategy
stakeholder groups to
recognise potentially
relevant issues 3 Communicate the
new strategy to all
relevant stakeholders
21 potentially relevant
issues identified
Rank Score Manage

Issues were ranked Fresh ranking of Recognise significant
according to importance issues based on the environmental, social and
based on management weighted average governance risks and
and employee surveys score achieved by opportunities for Havells
each issue
189 responses received Determine areas
from employees Separate score for target setting to
assigned to each improve business and
9 responses material issue based sustainability performance
from management on the response
After this exercise was completed, we developed a comprehensive roadmap to manage our material topics.
The roadmap is being effectively tracked and monitored to ensure enhanced sustainable performance.
HAVELLS INDIA LTD.

23
WH O WE A R E
Materiality matrix
Brand salience
Health and safety Customer and other

stakeholders’ delight
Talent management Emissions

Economic
Water withdrawal and
impact
Waste generated and
disposed
Relevance to stakeholders
Customer data privacy

and cyber security Capacity utilisation
and product demand Research and
Energy development
efficiency
Resource optimisation
Governance and
culture
Technology and digital
Code of conduct and transformation
Labour issues human rights
Employee training Distribution network
Green supply chain

Gender
equality
Relevant Important Critical
Relevance to business
Economic and governance Social Environment

24
Critical material topics and SDGs mapped
Economic performance Brand salience

We focus on profitable growth, reducing We maintain brand promise of safety,
manufacturing costs, improving quality and world-class products.
margins, etc.
Technology and digital Research and development

transformation
Improvements in the existing product
Technology and digital infusion has been line and innovation of new devices to
a major focus area for us to build an herald next-generation offerings and
organisation that is future ready and meets features is a continuous critical phase
the intrinsic needs of our consumers for in our product development process.
Internet of Things (IoT) devices.
Social
Customer and other Health and safety

Safety is a priority at Havells.
Customer delight is central We ensure a safe and secure
to our value creation. Our workplace for our employees.
business reach, product We are dedicated and vigilant in
portfolio and strong service maintaining a zero occupational
network are nurturing a fatality workplace at all our units.
growing customer base that is We observe a zero-tolerance
creating shared value for all our policy in terms of not following
stakeholders. We continuously health and safety norms at
strive to exceed customer the workplace. We are an equal
expectations as customers opportunity employer and our
are our biggest advocates to employees display a strong
generate revenue. sense of loyalty.
Talent management
Our talent management policies
and programmes strive to balance
employee aspirations with
organisational aspirations to build
long-lasting, mutually rewarding
relationship with them. We aim
to provide a work environment
where our people are encouraged
to contribute their best and are
suitably recognised.
HAVELLS INDIA LTD.

25
WH O WE A R E
Environment
Emissions Waste generated and disposed

We are conscious of our responsibility Across all our processes, we try to
towards the environment. Accordingly, increase the share of recycled and
we have integrated environmental alternative materials as inputs in our
considerations into all phases of production process, reduce and
our value chain to minimise the reuse waste and improve the material
environmental impact of our products management process for greater
and operations. We have undertaken resource efficiency. We are dedicated
numerous initiatives to mitigate and to reducing dependency on virgin
offset our emissions. materials and are also working towards
phasing out hazardous materials.
Water withdrawal and impact Energy efficiency

Since inception, we have been We are conscious of environmental
committed to judicious use of water protection and encourage development
in our day-to-day operations. Being of products which have low
the first fast-moving electrical goods energy footprint for entire lifecycle
‘water positive’ company in India (manufacturing to end‑of‑life use).
is a testimony of our commitment. All our manufacturing units adhere to
We have undertaken several energy-efficient practices. We always
initiatives that have helped us in aim to do more and better with less, by
minimising water withdrawal and reducing resource use and pollution,
discharge impacts. along the entire product life cycle.

26
UPHOLDING
THE HIGHEST
GOVERNANCE
STANDARDS
AT HAVELLS, OUR
STRONG GOVERNANCE
ALLOWS US TO RUN A
TIGHT SHIP. OVER THE
YEARS, THIS APPROACH
HAS ENABLED US TO
CREATE A RESILIENT
ORGANISATION.
HAVELLS INDIA LTD.

27
H OW WE B A LA N C E ETH I C S, R I SK S A N D VA L U ES A T WO R K
Key corporate governance indicators
50% ~10 YEARS

Independent Directors Average tenure of the Board
5
Committees headed by
Material issues addressed in this segment
Economic and Social Environment

governance
Brand salience Customer & other Emissions

Technology and Health and safety Energy efficiency

Talent management
SDGs served

28
Ensuring accountability at all levels

Havells incorporates the highest levels of transparency, accountability, controls and
efficiency through a robust corporate governance system.
Board of Directors
Non-Independent Directors
Anil Rai Gupta Surjit Kumar Gupta Ameet Kumar Gupta Rajesh Kumar Gupta
Chairman and Managing Director Non-Executive Whole-Time Director Whole-Time Director (Finance) and
Non-Independent Director Group CFO
Siddhartha Pandit T.V. Mohandas Pai Puneet Bhatia

Whole-time Director Non-Executive Non-Executive
Non-Independent Director Non-Independent Director
Pratima Ram Jalaj Ashwin Dani Upendra Kumar Sinha Subhash S Mundra
C C C C
B Prasada Rao Vivek Mehra Namrata Kaul Ashish Bharat Ram

Independent Director Independent Director Independent Director (Additional) Independent Director (Additional)
Notes:
Corporate Social omination and
N
1. With effect from 20th January, 2021, Smt. Namrata Kaul was appointed
Responsibility Committee Remuneration Committee
as an Additional Director (Independent) subject to approval of the
Enterprise Risk takeholders Relationship/
S shareholders at the ensuing AGM of the Company on 30th June, 2021
Management Committee Grievance Redressal Committee 2. With effect from 20th May, 2021, Shri Ashish Bharat Ram was appointed
as an Additional Director (Independent) subject to approval of the
Audit Committee C Chairman
shareholders at the ensuing AGM of the Company on 30th June, 2021
HAVELLS INDIA LTD.

29
Composition of the Board
Whole-Time Independent
Director (Finance) Directors
and Group CFO Chairman &
Managing
Whole-Time Director Non- Executive
Director Non‑Independent
Directors
Mandate of the Board

Our Board and its Committees supervise our business with
the objective of enhancing shareholder value, periodically
overseeing review of all compliance reports, which may relate
to, though are not limited to energy efficiency, health and safety
incidents, significant labour concerns and proposed solutions.
Board committees and their functions
Best CEO award Audit Committee

Reviews our reporting process
Nomination and
Remuneration Committee
for consumer and disclosures; recommends

the appointment, remuneration
Determines our policy
governing remuneration
durables sector and terms of appointment

of auditors; scrutinises
to the Managing Director,
Whole-Time Directors and the
for 2020. inter‑corporate loans and

performs other such functions
nomination and appointment
of Directors
Stakeholder Enterprise Risk

Relationship/Grievance Management Committee
Redressal Committee Identifies the risks impacting
During FY 2020-21, there were five
Scrutinises the status of the business and formulates
(5) Board meetings, all of which were
shareholder correspondences, and administers policies
conducted virtually. The time gap
queries, grievances and other strategies aimed at minimising
between any two Board meetings did
such matters and mitigating risks
not exceed 120 days. We received four
(4) shareholder grievances, which were
resolved within the year. The average Corporate Social Responsibility Committee
tenure of the Board for the year ended Develops the Corporate Social Responsibility Policy indicating
31st March 2021 was 9.71 years. the activities to be undertaken by Havells and recommends the
expenditure to be incurred on such activities; also monitors the
policy from time to time

30
Proactive response to challenges

Our structured risk management approach regularly monitors and evaluates potential
risks to devise ways of mitigating them. We have a strong control system that plays a
significant role in strengthening our financial, environmental, social and governance
(ESG) risk management framework. We ensure to keep our stakeholder interests in
mind while formulating our policies for mitigating risks.
Enterprise Risk
Management (ERM) ERM policy
We use ERM as a strategic
tool to strengthen our Our ERM policy is holistically strategised and serves as the base
organisational risk supervision for our risk management system. We remain committed to global
and simultaneously minimise benchmarks in good corporate governance. This focus enables
challenges and capitalise us to promote long- and short-term interests of all stakeholders,
on opportunities efficiently. strengthen the Board, create self-accountability and help build
At Havells, our ERM architecture trust in the organisation.
is inspired by the Committee
Our ERM policy covers our ERM framework, risk categorisation
of Sponsoring Organisations
and assessment, risk prioritisation and analysis, risk governance
of the Treadway Commission
structure, assessment matrix and mitigation strategy, etc.
(COSO) Framework.
Risk management architecture

Governance
Enterprise Risk
Board of Directors Leadership Council ERM Council
Management Committee
Risk Mitigation Process

Entity Level Business Level Division Level Functional Level Process Level Operational Level
Identification Strategic risk Likelihood Action plan Performance

of challenges/ Compliance risk Velocity Team formation Monitoring
opportunities Operational risk Consequence Cost benefit Communicating
Financial risk Prioritisation analysis Reporting
Reporting risk
Reputational risk
Brainstorming Categorisation Assessment Risk Response Monitoring

to Rating and Reporting
HAVELLS INDIA LTD.

31
Key risk categories, risks and rating
Likelihood Impact Velocity Overall rating
Risk category Risk
(A) (B) (C) (AxB)+C
Strategic Business disruptions due to black swan

events
Geographical and channel concentration
Inability to timely leverage technology

to meet customer expectations and
technical obsolescence
Third-party dependence for critical

technology
Cyber threats and dangers to

information security
Reputational Brand positioning
Digitalisation and social media
Financial Supply disruption and inventory

obsolescence
Relating to commodity prices and

currency fluctuations
Operational Brand reputation due to unsatisfactory

customer services
Related to quality assurance
Import dependency
Employee attrition
Related to environment, social

and governance
Compliance Intellectual property infringement and

counterfeit products
Non-compliance risk statutory and

other provisions
Likely Less likely Rapid Slow High Medium New risk added during FY 2020-21

32
Zero tolerance to non-compliance

We have built internal control systems that commensurates with our scale and stature.
These systems ensure strict compliance with applicable laws and regulations while
safeguarding our assets, preventing and detecting frauds and errors, maintaining
accurate and complete accounting records and preparing reliable financial
information on schedule.
We have well-defined Standard Operating Procedures (SOPs), Financial

& Operation Delegation of Authority (DOA) and organisational structure
for business functions ensuring smooth operations. We also have a
consequence management grid and committee in place, where based on
the severity of the issues, specific actions are undertaken to ensure the
issues are not repeated and closed on a timely basis.
In addition, occupational health and safety is a key priority for us; our
manufacturing units are OHSAS 18001/ISO 45001 certified.
Robust compliance Respecting human rights

monitoring mechanism We recognise human rights practices security guards, and aspects of human
followed globally such as the Universal rights are part of our induction training.
For the reporting year,
Declaration of Human Rights, the UN During the year, we trained ~90
we observed no confirmed cases
Guiding Principles on Business and security personnel on human rights.
of non‑compliance regarding
Human Rights and the International Our human rights policy is available on
environmental laws/ regulations or
Labour Organisation (ILO) Core our corporate website.
voluntary codes concerning health
Conventions on Labour Standards and
and safety impacts of our products
are building our organisational culture We further ensure to prohibit any
and services, products‑related
based on them. We follow our Group undesirable practice at Havells.
communication and product
directive on human rights diligently. Moreover, we make sure that no
information disclosure, labelling
These policies are specified in our business transaction takes place with
and marketing communications
Code of Conduct and Business Ethics any individual/organisation that violates
(advertising, promotion and
as well. Besides, all our production the fundamentals of human rights.
sponsorship).
units are assessed for human rights
and our employee induction During the year, we recorded zero
programme also touches upon our incidents of discrimination and did
code of conduct, general rules and not receive any complaints pertaining
guidelines, especially human rights to child labour, forced labour and
policies at Havells. All our sites were involuntary labour.
assessed for human rights aspects
using a standard checklist in the year
under review. We also provide human
rights trainings to our employees and
HAVELLS INDIA LTD.

33
Code of Conduct Policy for encouraging an Policy against insider
We conduct our business according
innovation culture: Idea
trading
to the applicable laws, rules and With Idea, we inspire an
Our prevention of insider
regulations and with the highest organisation-wide culture of
trading policy is designed to
standards of business ethics. innovative thinking and creativity
restrict our employees from any
Our Code of Conduct (CoC) allows across all business functions.
security‑related malpractices.
us to recognise and deal with ethical It suitably encourages our
It regulates and reports trading
issues, provides mechanism to colleagues to be more innovative
by designated persons.
report unethical conduct and helps with rewards and recognitions,
The policy is available on
nurture a culture of honesty and wherein we treat the innovation as a
our website.
accountability. The CoC is applicable news item and it is put on our intranet
for all Directors, Senior Management portal or newsletter to share the
and other employees of Havells India best practices. Details of the policy
Limited, as well as the employees of are available on our website.
the entire Havells Group. It is available
on the organisational website at
Policy on Prevention of Sexual
havells.com and on our intranet portal.
Harassment: Nirbhaya
Nirbhaya works towards eliminating
Whistle-blower policy: Satark
sexual harassment of women at
Through Satark, anyone associated the workplace. It has a structured
with Havells can report any observed approach of dealing with such cases.
unethical behaviour directly to the During the year, we accounted no
management, without fear or bias. such cases. The policy is available
The policy is applicable for actual or on our website.
suspected fraud, violation of our CoC
or ethics policy.
Apart from Satark, our employee

and vendor code of conduct also
have reporting mechanisms for
unethical practices, including fraud
and corruption.
At Havells, we ensure to make the

relevant stakeholders aware of these
policies with the right communication
across the right forum. During the
financial year, no incidents of
corruption were reported.
The Satark policy is available on

our website.

34
GROWING
RESPONSIBLY
WITH
INNOVATION
TECHNOLOGY AND INNOVATION

ARE EMPOWERING US TO
CHANGE THE CONTOURS OF
THE FMEG INDUSTRY, SERVING
AS CATALYSTS FOR VALUE
CREATION AT HAVELLS AS THEY
ENCOMPASS EVERY ASPECT OF
THE ORGANISATION. IN FACT, OUR
PRO-INNOVATION CULTURE
ALLOWS US TO STRENGTHEN OUR
COMPETITIVE EDGE, DELIVERING
SUSTAINABLE VALUE.
HAVELLS INDIA LTD.

35
H OW WE G EN ER A TE SU STA I N A B LE VA L U E
Business performance for FY 2020-21
INR 10,428 CRORES INR 1,565 CRORES

Revenue EBITDA
INR 188 CRORES INR 219 CRORES

Dividend Net capital expenditure
Economic performance
Research and development
SDGs served

36
Sustaining profitable growth amid headwinds

At Havells, profitability is key to sustainability, which stems from our ability to deploy
financial resources prudently to fund growth and generate value for our shareholders.
In a year like no other, we focused on staying nimble, to navigate through the
enormous challenges during the first few months and then went full throttle in the
latter half to capitalise on emerging opportunities following all necessary guidelines
provided by the government and authorities during the pandemic.
Managing liquidity, improving efficiency, meeting all financial obligations
Created cash buffers Formed various cross Implemented the Robotic

through bank borrowings functional teams (CFTs) Process Automation (RPA)
and an organisation-wide with specific objectives such software for performing
austerity drive with a as efficiency improvement repeat functions such as
sharp focus on reducing across the organisation; Finance and Accounts to
non‑essential expenditures CFTs ensured wider reduce cycle time and drive
cross‑functional participation, further efficiencies
quicker decision-making
and newer ways of working,
resulting in cost efficiency
Ensured on-time Strengthened digitalisation Truncated all non-critical

payments to all dependent resulted in significant capital expenditure
stakeholders such as productivity benefits such as budgeted for the year to
employees and vendors, reduced cost on travel and preserve liquidity; however,
alongside assistance with administrative expenditure all essential and critical
need-based credit for through interesting concepts expansion were fully
distributors and retailers such as ‘E-travel’, digital supported
launches and online
channel meets
HAVELLS INDIA LTD.

37
Key financial performance indicators
Revenue
FY 2020-21 10,427.92
11% 14%
FY 2019-20 9,429.20
FY 2018-19 10,067.71
EBITDA
FY 2020-21 1,565.26
52% 16%
FY 2019-20 1,027.38
FY 2018-19 1,183.83
EBITDA margin
FY 2020-21 15.0%
FY 2019-20 10.9%
FY 2018-19 11.8%
PAT
FY 2020-21 1,039.64
42% 8%
FY 2019-20 733.03
FY 2018-19 787.34
PAT margin
FY 2020-21 10.0%
FY 2019-20 7.8%
FY 2018-19 7.8%
y-o-y growth 5-year CAGR

38
Smart, safe and sustainable products

Product responsibility entails manufacturing high-quality products which have minimal
impact on the environment. We drive sustainability through our innovative products
ensuring maximum safety standards and resource efficiency. At Havells, product
responsibility begins at the conception and design stage and continues throughout
the product’s lifecycle.
Our sustainable products
Water heaters with IoT-integrated

intelligent heating home appliances
Heat Pump Refrigerator with

Water Heater Bactshield technology
HAVELLS INDIA LTD.

39
App-based smart home Energy-efficient products
LED lighting system Smart lighting products, fan such
as Carnesia-I, stealth Puro Air with
App-based smart home
50% energy saving
lighting (Glamax RGB/ Tunable)
Anti-bacterial switches Smart Sense

for healthy homes technology‑based ceiling fan

40
Underlining market presence with next-gen offerings

With the use of latest technologies, we are creating more personalised experiences and products.
Research and innovation at Havells enables us to consistently introduce new products in the market.
Anti-bacterial switches for

healthy homes
Crabtree, our premium brand, celebrated its 100 years legacy
by introducing a new feature, with anti-bacterial properties,
among its Athena, Signia and Verona switch ranges.
Equipped with anti-bacterial and anti-fungal built-in polymer
technology (using metal compounds), they impede the growth
and spread of harmful microbes through human touch with
99.99% efficiency. These switches enable healthier living
and are likely to play a crucial role in controlling the spread
of diarrhoea, food poisoning, pneumonia, conjunctivitis,
and others. Moreover, they offer lasting use with good
weatherability ensuring non-discoloration under high humidity
and temperature. The product base material is approved
by international agencies like United States Food and Drug
Administration (FDA), European Union’s European Chemicals
Agency (ECHA), and United States Environmental Protection
Agency (EPA) and has been tested by the third‑party
laboratories using Japanese Industrial Standards (JIS) and
International Organization for Standardization (ISO).
Revolutionising
refrigeration in
tropical weather
Lloyd launched its refrigerator range equipped with
class‑leading features during FY 2020-21. The new
range uses Bactshield technology that eliminates
bacteria from the refrigerator, providing long‑lasting
freshness to the perishable items stored –
a much‑needed feature in India’s tropical climate.
The refrigerators also have the Decacool
technology, ensuring cooling in every corner and
use a flexi-max design, catering the underlying
need for more and flexible storage. These
energy‑efficient refrigerators are rated as per
the 2020 energy rating norms accentuating the
advantages of the Inverter technology, dual safety
compressor with over-load protector (OLP) and
over-heat relay (OHR) that enhances compressor
life. Lloyd refrigerators are also environment friendly
with a zero ozone depletion potential (zero ODP)
presence, thereby reducing their carbon footprint.
HAVELLS INDIA LTD.

41
India’s first residential
AC with automatic
humidity control
We launched Intelli-Logic Air Conditioners
with automatic humidity control through
real-time humidity sensing. These ACs are
equipped with nano silver coated fins that
impede growth of bacteria thus eliminating
bad odour while plasma protective shield
is capable of effectively reducing the
proliferation of bacteria and viruses.
The product is voice and wifi enabled
and can be operated through an app
and voice commands (Alexa and
Google Assistant). This is a heavy-duty
machine that performs efficiently even
when the outside temperature is 520 Celsius.
Incorporating new-age technologies

for better metrics
We inaugurated a new line for water heater
manufacturing. The new facility is at par with
international manufacturing units and can
incorporate Industry 4.0 technologies. Besides,
it will save 80% manpower and reduce the
space requirement by 50%. It is fully compatible
to Artificial Intelligence and is among the
most‑modern water heaters manufacturing units
in India.
Havells Smart Energy
Helping improve the quality of life Management Solution
We aim to enhance lifestyles by incorporating
Our Smart Energy Management Solution is a
latest technologies like Artificial Intelligence (AI),
cloud-based prepaid dual energy metering and
Internet of Things (IoT), real-time data sharing,
management system with current limiter for dual
data analytics and other cyber-physical tools into
supply (Electricity Board and Diesel Genset).
our smart products. We are continuously working
Havells uses latest technology and smart building
to add exciting and technologically winsome
concept of integration to harvest energy and
items to our product basket, which cater to the
provide a complete solution for cost-effective
constantly changing consumer taste. We employ
energy management system and cloud-based
a strong research and development team to
automation design and integration.
develop these new-age products and services.

42
Intelligent solutions simplify life

Innovation influences every aspect of our business, including how we address
the evolving market landscape, develop new products and services, and deliver
customer delight. We promote a pro-innovation culture that encourages our people to
find unique ways to solve day-to-day challenges.
We are transitioning from a product-focused to a solution-based strategy that concentrates

on ‘intelligent hardware, embedded software’ philosophy. This change will enable us to offer
comprehensive solutions to all electronic and electrical needs of customers, allowing us to widen
our portfolio engagement with them, besides providing opportunities to cross-sell.
HAVELLS INDIA LTD.

43
Customer
Experience & Design
380+
Research and development
Centre (CXD) team size
Our design and consumer experience

studio, CXD plays a vital role in
developing our products and delivers
category-leading, innovative design
solutions. It uses feedback from
select customers to further customise
our products.
686
Patents and designs filed
Recognitions for our unique design up till 31st March 2021
Won 10th CII Design Excellence
Awards 2020 for Crabtree SmartH
Automation Range
Bagged India Design Mark award for
Edgelit – No dark edges Batten
Received India Design Mark
for Nu Bulb+
133
Patents and designs filed
during FY 2020-21
Research and innovation:

the foci of our growth
We continuously invest in strengthening our research
and innovation (R&I) capabilities. Our focus on
strengthening research centres, alongside world‑class
test laboratories and production infrastructure is
helping us introduce first-in-the-market features and
products in our product suite.
At Havells, R&I initiatives enable the creation

of eco‑friendly and energy-efficient solutions
for all electronic requirements of modern life.
We continue to focus on sustainable product
innovations across the product lifecycle (design,
development, manufacturability and use phases)
and delivering future-ready products with two major
dedicated research and innovation centres – Centre
for Research and Innovation (CRI), Noida and
Innovation Hub, Bangaluru.
Over the years, we have garnered copyrights, patents

and trademarks in India and beyond its borders.
Note: Pre-pandemic image

44
8-step fan regulator Smart sockets for touchless switching

This is a new, first-in-the-market product and During FY 2020-21, we launched the wifi controlled
offers uniform speed regulation for all fan models smart sockets for enabling mobile or voice commands
available in the market with 360° rotation, soft on ordinary devices. Compatible with appliances such
operations and hum-free running. These can be as ACs, water heaters, water pumps and others, its
retrofitted in any normal or high-speed fan, without installation is easy and requires no change in structural or
any structural or electrical changes. electrical changes. It can be retrofitted into any device.
Easy to use through DigiTap Mobile App, it provides
multiple control options, including touch, app, remote and
Alexa voice control.
HAVELLS INDIA LTD.

45
Soch
We encourage the spirit of innovation
among our stakeholders, primarily
customers and vendors, by inviting
their suggestions on our digital
platform, Soch.
Smart H: India’s first full-modular Technology to enable remote switching

Home Automation During the year, we launched the Auto Recloser for
MCB/RCCB*/RCBO^. Auto Recloser helps users to
Smart H offers modular home automation range with
remotely control circuit breakers. It is ideal for use
relays, dimmer remote and sensors. It can be retrofitted
in a wide range of loads, including street lighting,
and provides enhanced automation experience with
interior remote lighting and plenty more.
wide range of accessories and multiple control options,
including touch, app, remote and Alexa voice control. *Residual Current Circuit Breaker
^Residual Current Breaker with Over-Current

46
Enhancing efficiency, optimising costs

We undertook a cost optimisation drive during FY 2020-21, which focused
primarily on improving plant productivity and efficiency, sourcing, and
incorporating value engineering in products and processes.
Each plant nominated team members to work on

these aspects. The teams came up with various ideas
on improving localisation, thereby reducing dependency
INR ~2 CRORES
on import sources. The facilities also revalidated Cost savings during FY 2020-21 as a result of
operating efficiency and spare capacity to review our using energy saving projects
make or buy options. We worked on overall equipment
effectiveness (OEE) drive and manpower efficiency
which enhanced our operations.
Ways of Working (WoW)

Under WoW, we identified a task force of senior
executives from various functions. They were given
a clear timeline to demonstrate results. With a
target‑oriented approach, priority for FY 2020-21 was
set on four key pillars:
OEE drive (for improving plant and machinery

equipment efficiency through)
Maynard operation sequence technique (MOST) (for
improving manpower efficiency of operators)
Driving cross-facility inspiration (learning from each
other in developing best practices across plants)
Digitalisation
Overall equipment effectiveness (OEE) drive

To strengthen this programme, we made a sub task
force in each plant and trained the teams. With a
structured approach, we achieved standardisation
across the plants, besides measuring the current
efficiencies and losses in our facilities. Teams worked
extensively to eliminate these losses and make the
operations more effective. By December 2020, most of
the plants reached ~70% OEE level. Going forward, we
will continue to enhance our efficiency in the utilisation
of machines and equipment, improving production and
productivity levels.
~70%
OEE level across all plants
HAVELLS INDIA LTD.

47
Maynard operation sequence technique (MOST) Driving cross-facility inspirations
We began measuring the productivity of Team Havells at Each Havells plant is unique and has a specialised
our manufacturing units through MOST, which evaluated style of working and process. We started a
manpower productivity, utilisation of manpower and knowledge‑sharing programme across our facilities
line balancing. Before we undertook this programme, our to adopt the best practices on energy savings,
plants functioned at 45-50% of measure of performance special processes and others. During the year, we
(MOP) level, which improved to 70% across all the eight also started working on horizontal deployment of
locations. In the upcoming financial year, we are looking identified learnings.
forward to implementing the same in other functions as well.

48
Digitalisation Ensuring product quality with

We leverage digital technologies and data analytics state-of-the-art manufacturing and
to transform how we work and engage with our
stakeholders, especially our customers, and create new
testing footprint
revenue streams. Over the years, we have adopted the Havells’ quality ecosystem is built around the culture
latest technologies to address identified topics. During of ‘customer centricity’. Our products meet stringent
FY 2020-21, we took digitalisation deeper to address requirements for global standards. We achieve this through
the needs of our channel partners by automating various process automation, robust IT integrated systems, capable
time-consuming and manual processes and systems. supplier value-chain and a highly engaged workforce.
Our modern plants at various locations are a testimony
We undertook the following initiatives during the year: to this. For us, quality is the key differentiator.
Deployed AI Chatbot to facilitate intelligent dialogue
between Havells and channel partners, service
partners and end consumers
Created several digital services platforms to support

process automation, increase business agility and
emphasise process improvement and standardisation
including digitalisation of the cable division and
international business, a cloud-IT backbone and
infrastructure to support and transition legacy IT
systems to cloud-native platforms Ensuring the quality of our air purifiers
Our air quality monitoring laboratory has been
These initiatives led to:
established to monitor the efficacy of our air purifiers.
Recorded faster registration of new channel The air quality lab is well equipped with instruments
partners, reducing the time taken from 15 days to such as volatile organic compounds (VOC) sampler,
only 15 minutes. inorganic gaseous pollutants detector/sampler,
microbiological air sampler and equipment to monitor
Increased digital registration of the new channel
all the parameters (particulate matter 10 and 2.5,
partners (~90% during FY 2020-21)
nitrogen dioxide, ozone, carbon monoxide, sulphur
Introduced WhatsApp Business API empowering dioxide, ammonia, formaldehyde, total volatile organic
communication with customers, facilitating touchpoints compounds and carbon dioxide) mentioned in
and transactions in a simple, secure and reliable way the guidelines. The laboratory is also equipped with
air sealed (3m3) stainless steel test chamber for testing
Transitioned seamlessly to a remote work environment
and validation of air purifiers.
during the nationwide lockdown
HAVELLS INDIA LTD.

49
Building quality culture at shop floor CII award for Quality Circle Competition
We introduced Quality Circle in FY 2018-19 to engage and Our Baddi Plant bagged a runner up Quality
develop problem-solving skills of our front-line operators Circle Competition award for FY 2020-21 by
and production shop supervisors. Under this programme, Confederation of Indian Industry (CII).
we actively engaged front-line operators and production
shop supervisors, resulting in savings of INR 13 Crores for
INR 13 CRORES
the year.
Currently, over 1,000 shop floor operators directly engage
in Quality Circle programmes to enhance their skills.
We also conduct inter-plant competitions every six Savings through Quality Circle
months, where top teams participate to win recognitions. during FY 2020-21
These competitions serve as the platform for inter-plant
cooperation and sharing of best practices, while promoting
healthy competition. One of our teams ‘Prawal’ has been
qualified for National CII Quality Circle competition.

50
IMPROVING OUR
PERFORMANCE ON
ENVIRONMENTAL
FACTORS
WE ARE STRATEGICALLY
MOVING TOWARDS
REDUCING OUR RESOURCE
FOOTPRINT, WITH A FOCUS
ON MAXIMISING OUR ENERGY
AND MATERIAL EFFICIENCY,
WHILE SIMULTANEOUSLY,
MINIMISING OUR EMISSIONS,
WASTES, AND WATER
UTILISATION TO LEAVE
BEHIND A BETTER PLANET
FOR THE FUTURE.
HAVELLS INDIA LTD.

51
H OW WE C A R E FO R TH E EN VI R O N M EN T
Tracking our environmental efforts
47% 56%
Reduction in GHG emissions intensity Of consumed water is recycled
54-55 58-59
12,319 MT 6,578 MWH

Total waste recycled Renewable energy used
60-61 56-57
Environment
Emissions
Water withdrawal and impact
Waste generated and disposed
Energy efficiency
SDGs served
Note: All MT and mt units signify metric tonnes and appear

different to please design aestehtics.
52
Minimising environmental footprint

With the objective of reducing the environmental impact of our operations,
we are working towards decreasing our energy consumption, increasing the use
of renewable and clean energy, reducing emissions, lowering fresh water intake
and limiting waste generation and waste that goes to landfill.
We have implemented Quality, Energy,

Environmental, Occupational Health and Safety
(QEEHS) policy, of which our environmental
100%
(ISO 14001) and energy (ISO 50001) management Havells’ production sites are
systems are integral parts. ISO 14001 and ISO 50001 certified
HAVELLS INDIA LTD.

53
Environmental compliance
Compliance to environmental laws is non-negotiable at
Havells and we adhere to all the relevant and applicable
regulations laid down by the government. We are strengthening
our environmental management and protection policies by
focusing on specific issues such as effective storage, handling,
transportation and disposal of the hazardous waste generated
at our units. We ensure to dispose these only through dealers
authorised by Central/State Pollution Control Boards.
Our report showcases the following KPIs for measuring

our sustainable progress:
INR 2 CRORES 28,878 GJ

Environmental expenditure Renewable energy used
1,20,502 MT 40 GJ/CRORES
Raw materials used Energy intensity (excluding purchased electricity)
7 MTCO EQV/CRORES 2
67 GJ/CRORES
GHG emission intensity Total energy intensity
1 MTCO EQV/CRORE 2
164 MEGA LITRES
GHG emission intensity (Scope-1) Total water consumption
6 MTCO EQV/CRORE 2
59 MEGA LITRES
GHG emission intensity (Scope-2) Water recycled
Note: mtCO2eqv is metric tonnes of carbon dioxide equivalents

54
Contributing to climate change mitigation

Climate change is one of the most pressing global challenges of the 21st century.
As a responsible organisation with global market footprint, we have a crucial role to play
in its worldwide mitigation efforts. Although we are not in a fossil-fuel-intensive industry,
we consciously focus on minimising our GHG emissions.
GHG emissions
Direct (Scope 1) GHG emissions
Over the years, we have been working persistently towards
lowering our carbon footprint through various initiatives,
decreasing our specific Scope 1 emissions, which forms a
small part of our total emissions.
Some of our initiatives include procurement and use of

battery-operated forklifts at our Ghiloth plant, instead
of conventional diesel-based forklifts, use of natural
gas‑based furnaces, etc.
Total direct GHG emissions - Scope 1 (mtCO2eqv)
Green buildings for a FY 2020-21

FY 2019-20
7,384
6,886
sustainable world FY 2018-19 7,339
Our integrated AC manufacturing facility

at Ghiloth, Rajasthan and the new wire
manufacturing site at our Alwar site in Rajasthan Energy indirect (Scope 2) GHG emissions
were rated as Gold Certified Green Buildings by
During the year, we implemented ISO 50001 energy
the Indian Green Building Council (IGBC).
management system and initiated 37 projects under the
Both units were developed according to same, saving 2,297.70 MWh energy, which is equal to
Green Building criteria under IGBC guidelines 1,884.20 tonnes of CO2 equivalent.
and norms. The Ghiloth facility is among the
Some of the initiatives we undertook to reduce our
most‑advanced AC manufacturing units globally
Scope 2 GHG emissions include the following:
and uses IoT‑enabled machines and processes
that ensure efficient resource utilisation and Optimised pumps and motors for efficient
minimises waste generation. The Alwar plant is power consumption
also designed on the principles of sustainable
Used synchronisation of chiller
architecture and design approach to reduce
environmental impacts through green concepts Prevented ideal running of lights and equipment
and techniques. through process optimisation
These sustainable buildings are constructed Installed all-in-one energy-efficient air dryer
with environment-friendly construction materials,
Replaced conventional ceiling fans with
have ample natural day light, proper ventilation
energy‑efficient ceiling fans
systems for optimised use of air conditioners,
rainwater harvesting systems and solar power Saved electricity and fuel consumption by reducing
generation facility, among others. cycle time of varnish oven
HAVELLS INDIA LTD.

55
Total indirect GHG emissions - Scope 2 Chlorofluorocarbons (CFCs)
(mtCO2eqv) (Kg CFC eqv)
FY 2020-21 63,068 FY 2020-21 9.70

FY 2019-20 69,275 FY 2019-20 16.80
FY 2018-19 68,859 FY 2018-19 23.60
Other indirect (Scope 3) GHG emissions R-22 consumption

Under Scope 3 emissions, we only considered
employee commuting for the reporting period. FY 2020-21 194.70
During this reporting year, we undertook detailed FY 2019-20 335.90
accounting of Scope 3 emissions, including all our
FY 2018-19 429.00
manufacturing units. Our total Scope 3 emission
were 5,182 mtCO2 equivalents.
NOx and SOx emissions

GHG emissions intensity
While nitrogen oxides (NOx) often act as indirect
Scope 1 (mtCO2eqv/Crores) GHGs damaging the environment, sulphur oxides
(SOx) frequently prove detrimental to life on earth,
FY 2020-21 0.70 making these two groups of emissions highly
FY 2019-20 0.70 dangerous. At Havells, our operations release
miniscule amounts of SOx and NOx and we have in
FY 2018-19 0.70 place state-of-the-art air pollution control equipment
to control these.
Scope 2 (mtCO2eqv/Crores) SOx (mt)

FY 2020-21 6.00 FY 2020-21 0.20
FY 2019-20 7.30 FY 2019-20 0.18
FY 2018-19 6.80 FY 2018-19 0.15
NOx (mt)
Other emissions
FY 2020-21 4.74
Ozone-depleting substances (ODS) FY 2019-20 4.50
ODS has a serious impact on the environment, FY 2018-19 3.40
including human health and agricultural productivity,
making it a key hindrance to sustainability. At Havells,
we are consciously moving away from the use of ODS
in our refrigerants for air conditioners and refrigerators,
thereby strategically moving towards R134a refrigerant Next steps
with no ozone-depleting properties. In fact, during
We are continuously working towards reducing
the year, we launched environment‑friendly Lloyd
our environmental impact with focused
refrigerators with zero ODS. Conscious of emissions
initiatives towards decreasing our emissions.
from air conditioning at our office buildings, we have
Going forward, we are aiming to build an
reduced our consumption of ozone-depleting R-22
organisation that is wood and paper neutral and
refrigerant by 50% in the last several years.
convert our facilities into green buildings.

56
Energy efficiency at every step

As an FMEG company, developing energy-efficient processes and products
remains at the core of our business. Over the years, we have increased the share
of renewable energy and clean energy such as natural gas in our fuel mix.
Technology adoption enables

energy efficiency 6,66,341 GJ
Our Alwar plant is the largest integrated cable and wire Total energy consumption within Havells
manufacturing plant in India. Recently, we developed
a new site for wire production at the factory. Designed
from non-renewable sources
on sustainability principles, the site reduces our
environmental impact through new-age technologies.
28,878 GJ
The plant has 4th generation energy-efficient Maillefer
Extruder with proven European technology, which
guarantees excellent centricity and high-stability
product with homogeneity at high speed of 1,200 m/min. Total energy consumption within Havells
from renewable sources
Renewable energy
Renewable energy infrastructure at Havells helps us to
reduce carbon footprint and lower our electricity cost
74,575 GJ
per unit. We have an overall solar power generation Total energy consumption
capacity of 5.6 MW. Also, we have installed 1.95 MW outside Havells
of additional rooftop solar capacity, which will be
commissioned in FY 2021-22.
Energy mix (%)
8.55 Increasing renewable

Energy from
renewable sources
energy generation
91.45 and use
Energy from
We are adding 1.95 MW rooftop solar
non‑renewable sources
power generation capacity in our
Alwar wire plant, which will take our
solar power generation capacity to
Renewable power generation capacity (MW) 7.55 MW upon commissioning
in FY 2021-22
FY 2020-21 5.60
FY 2019-20 5.60
FY 2018-19 4.50
HAVELLS INDIA LTD.

57
Reducing energy intensity Energy intensity ratio (GJ/Crores)
(excluding purchased electricity)
With a focus on lowering our energy consumption and
costs, we are progressing towards a low-emission FY 2020-21 40.12
technology, with a focus on clean energy, thereby FY 2019-20 45.10
decreasing our energy intensity. Total energy intensity is
66.66 GJ/ Crores. FY 2018-19 42.50
Enabling customers to become energy efficient

At Havells, we ensure to develop energy-efficient products
that help our customers to live with a sustainability focus.
We pursue Bureau of Energy Efficiency (BEE) star rating
and Conformitè Europëenne (CE) marking for our products.
Next steps
We are working towards energy efficiency across
Havells by incorporating better equipment and
processes. We are also increasing the share
of renewable energy resources (solar power)
in our activities. Going forward, we intend to
develop rooftop solar power generation systems
across all our facilities. Moreover, we ensure to
add energy‑efficient products to enhance energy
efficiency at our customers’ end as well.

58
Making every drop count

According to UN reports, over 40% of the world population will face acute water
shortages by 2050. At Havells, we are conscious of this fact and recognise that
water is a shared resource and every individual, including corporates must ensure
that every drop of water is accounted for.
106
Responsible water consumption is a priority
at Havells. We focus on gaining water efficiency.
We became a water-positive company during
FY 2015‑16 with the index improving 1.6 times
in FY 2018-19, as assured by an independent MEGA LITRES
third party.
Freshwater consumption during
FY 2020-21
Managing water Water consumption

Water management for us is based on the concept of With a disciplined day-to-day usage, our water
giving back to nature more than we extract. We have management strategy concentrates on every aspect of
clearly identified our units in water-deficit regions and its consumption – from intake to discharge.
work double hard to diminish our water consumption in
these units. We use different methods such as harvesting We reduced our freshwater water consumption with
rainwater and recharging the ground aquifers to realise targeted conservation measures and our regular efforts.
this aim. In fact, in FY 2020-21, we managed to bring it down
significantly. Also, the pandemic lockdown has contributed
As an FMEG, our manufacturing processes are not water to the reduction impact.
intensive, but some units like water-based paint shops
use water extensively. We ensure these procedures Decreasing water consumption (mega litres)
are managed efficiently and are incorporating new
technologies to reduce water consumption. As a FY 2020-21 105.55
result, we adopted dry-powder-based paint shops and FY 2019-20 135.26
air‑based screw compressors that do not utilise water like
the conventional technologies in use, thereby reducing FY 2018-19 158.20
our intake of this precious natural resource. We have
also installed digital water meters and updated our water
We introduced flow-optimised and sensor-based taps
balance diagram to enhance our water management
and urinals at our premises, checked water leakages and
systems and processes.
closed unnecessary water distribution points to reduce
water wastage. We also installed water meters for better
control and monitoring of water usage at Havells.
Water consumption sources*
(%) (mega litres)
Groundwater 65 68
Third-party
water tanker 12 24
Municipal water 23 13
*Figures rounded off
HAVELLS INDIA LTD.

59
Recycling water Harvesting rainwater
We treat and recycle wastewater generated from our All our manufacturing plants are equipped with
operations, toilet and canteen facilities. We have equipped rainwater harvesting systems that collect water from
all our units with sewage treatment plants (STPs) and rooftops and paved surfaces and channel it through
effluents treatment plants (ETPs) as required. We use dedicated rainwater drains into scientifically designed
recycled water for developing greenbelt and plantation. artificial groundwater recharging structures. Last year,
There is no impact on any water body or related habitats we added three new rainwater harvesting and
due to our strong wastewater management systems. groundwater recharge pits with capacity of 75 kilo litres
Only our Faridabad plant released treated water (after each at our Neemrana facility. These new structures
maintaining the minimum discharge standards) into receive runoff rainwater from the recently erected
municipal sewage line with necessary approvals from storage shed.
the concerned authorities during FY 2020-21. At Havells,
we maintain the required standards of STP and ETP
according to the applicable guidelines and directions of
Central Pollution Control Board (CPCB) and State Pollution
Control Boards (SPCBs).
46
MEGA LITRES
Total recycled water from STP
Next steps
13 At Havells, we will further work towards reducing
our water consumption and increasing our
MEGA LITRES water reclamation efforts. Going forward, we will
incorporate more rainwater harvesting projects
Total recycled water from ETP across our units and communities.

60
Optimising resource use, reducing waste

We are continuously focusing on improving material efficiency,
environment‑friendly packaging and waste recycling, among others. Material
efficiency at Havells contributes to reduced industrial waste volumes, lower
consumption of virgin raw materials, increased waste segregation, decreased
energy demand and reduced carbon emissions.
5Rs approach
at Havells Reduce
At Havells, the 5Rs philosophy
involves reduce, reuse,
recycle, recover and residual
Residual
management. With this technique Reuse
in place, we recycle ~95% of our
non-hazardous waste. We reuse
management
Havells
waste wood from cable drums to
build school furniture as part of
5R
our social responsibility activities
and ensure to never use paper
philosophy
cup or plastic water bottles,
paving the way for a circular
economy to flourish.
Recover Recycle
Efficiently using raw materials

We believe in judicious use of resources and try to minimise our consumption. We use a variety of raw materials, including
different metals, plastics, resins, PVC and others.
Virgin raw materials used in FY 2020-21
Raw materials Associated process material Semi-manufactured Packaging material

(grease, lubricants, paints, goods or parts
solvents, inks)
1,20,502 mt 33,478 mt 1,05,80,664 10,04,439 FT3

number
9,30,761 Litres 54,59,64,519 number
3,339 mt
2,29,60,265 Metres
HAVELLS INDIA LTD.

61
Waste management system Environment-friendly packaging
We have a stringent waste management system for At Havells, our objective is to maximise the use of
hazardous and non-hazardous waste generated at recycled materials for packaging. We partner with various
Havells. During the year, we recycled 12,907.60 MT of research institutes and NGOs to develop new-age
non‑hazardous waste and reused 478.87 MT, including packaging materials.
metal, rubber and plastic scrap.
Our packaging development management system
All hazardous waste generated at Havells is disposed (PDMS) helps us minimise packaging materials by
according to regulatory specifications provided by SPCB/ developing the product packaging parallel to its design.
CPCB and Ministry of Environment Forest and Climate This allows us to prepare the product prototype,
Change (MOEFCC). During the year, there were no alongside its packaging, optimising the need for
significant spills to be reported and total hazardous waste packaging materials. Moreover, vendors involved in
disposed were 196.55 MT through authorised vendors. packaging are better prepared to handle it, thereby
increasing material efficiency and reducing waste.
The use of PDMS allows us to capture inputs from various
12,319 MT
departments like Marketing, Sales, Marcom and others to
incorporate them into packaging development.
We are also working towards introducing recycled

Waste recycled materials in product design to diminish the use of virgin
materials and modernising our processes to handle
<5%
recyclable materials.
Total waste to landfill

E-waste management
Plastic Waste Management (PWM) We undertake e-waste management
service under the guidelines of E-Waste
We take responsibility of disposing plastic wastes (Management) Rules, 2016, issued by
associated with our product packaging. In order to the Ministry of Environment and Forest,
fulfil our extended producer responsibility (EPR) we are Government of India.
collecting plastic low-density polyethylene (LDPE) bags
Under this initiative, we have partnered with
and thermocol.
government-authorised recyclers. We collect
electronic products at the end of their lifecycle
at our e-waste drop-off centres and ensure
Decreased plastic use in packaging
environmentally safe management of these
electronics and/or defective spare parts.
Removed metallised Used pulp-moulded For safe disposal of their e-waste, customers
Polyethylene Terephthalate trays for our water can schedule doorstep pickup by calling
film from our packaging heater packaging to our toll‑free number 1800-1020-666. We are
replace thermocol urging our channel partners and customers
to take up this challenge of helping us collect
e-waste and defective spare parts.
Reduced lightweight Incorporated
All the necessary and legal authorisations
expanded polystyrene paper‑based tapes
required for the processing facilities have
(EPS) from our packaging to replace biaxial
been undertaken and approved by concerned
(especially in the professional oriented polypropylene
governmental agencies.
lighting segment) and (BOPP) tapes in lighter
replace with corrugated or weight packaging
honeycomb fillers
Next steps
Introduced Used recycling bins
bio‑degradable plastic instead of plastic We are working towards reducing our use of virgin
bags for our packaging packaging to move some materials and adopting the circular economy philosophy
of our raw materials to be to further strengthen our 5R philosophy while diminishing
used in production wastes in our production and packaging.

62
BUILDING
ENDURING
BONDS
WE HAVE EARNED THE

CONFIDENCE
OF OUR STAKEHOLDERS
(CUSTOMERS, PEOPLE, VENDOR
PARTNERS AND COMMUNITIES)
WITH CONTINUED EFFORTS
TO UNDERSTAND THEIR
ASPIRATIONS AND MEET
THEIR EXPECTATIONS.
HAVELLS INDIA LTD.

63
H OW WE M A N A G E O U R R ELA TI O N SH I PS
Social and relationship sustainability facts
9 90+ MILLION
Large virtual dealer meets Customer engagement via social media*
70-71 64-65
*Views, likes, comments and shares of our postings

on Facebook, Instagram, Twitter
386
Virtual training sessions for Team
Havells during FY 2020-21
66-69
Economic and Social Environment

governance
Brand salience Customer & other Emissions

Technology and Health and safety Energy efficiency

Talent management
SDGs served

64
Aligned to customer needs and aspirations

We are a customer-centric organisation, focused on providing a positive
customer experience across their journey with us. Our products offer
customer delight with convenience, sustainable value, energy efficiency
and enhanced experience for them.
Delighting customers digitally

During FY 2020-21, we connected with our customers
digitally through various online platforms to understand their
needs and meet their requirements. While this included
~96%
increasing our presence significantly on e-commerce sites Of our orders are made
and focusing on online-to-offline business strategy, we also through dealer portal
made sure to support our customers beyond sales.
Online-to-offline model
During FY 2020-21, we started the Online‑to‑Offline
(O2O) model to function as an online marketplace for
our existing channel partners (dealers, distributers and
retailers). Under this model, the channel partners list
our products (that they sell) on our e-store. Once the
customer makes a purchase on the online platform, they
ensure delivery like any other online shopping destination.
Online support services

We also delivered support services through digital
means, conducted various interactive programmes that
enabled their ‘new normal’ lifestyle and most importantly,
increased product guarantees wherever possible.
Support services using digital means

We continued to address and resolve customer
concerns during the lockdown by providing
seamless basic trouble‑shooting services.
As our field service engineers (FSEs) were unable
to reach complaint locations, we empowered them
to leverage digital communication techniques
such as WhatsApp chats and video calls to solve
standard service requests. Our customers can use
dedicated mobile apps (Havells Consumer Connect
and My Lloyd), WhatsApp Chat or send text
messages for the same. We encouraged customers
to take up Do It Yourself (DIY) maintenance drill
for specific products like air conditioners, washing
machines, air coolers and water purifiers that need
regular servicing. For the purpose, we created
DIY tutorial videos and step‑by-step illustrations.
HAVELLS INDIA LTD.

65
Deepening our customer bonds in Data safety and privacy
‘the new normal’ At Havells, we use Artificial Intelligence/Machine
Language (AI/ML) based security solutions to protect
We partnered with four celebrity stylists (Jawed
our business and our customers’ data stored with
Habib, Ambika Pillai, Sanky Evrus and Pompy
us from cyber threats. Further, we have a dedicated
Hans) who shared their perspective on styling at
IT Security and SOC Team to ensure operating
home, work from home styling, tips and tricks for
effectiveness of our cyber security architecture.
monsoon styling and myths around styling tools.
This is followed by employee awareness and training
programmes conducted regularly on data security
These stylists conducted sessions on our social
and privacy, cyber threats (phishing/spoofing etc.),
media platforms, which received stupendous
including tools like data encryption, access control and
traction. The brand campaign, #schoolofgrooming,
multi‑factor authentication (MFA) are implemented.
helped us cater to the evolving tastes of our target
customers and helped them stay ahead with the
latest grooming trends. Customer education
~3 MILLION
For us, educating customers on safety of electric
products is among our moral responsibilities. With this
mindset in place, we have always kept our customers
Reached through this programme updated on various safety focus areas for our offerings.
During the year, we designed an exciting campaign
roping in veteran actor Vijay Raaz in the role of
~2 MILLION an electrician.
Views on Facebook and Instagram

Driving customer awareness with
campaigns in vernacular languages
We designed a digital campaign that spread
awareness about the importance of installing
residual current circuit breaker (RCCB) to
Cushioning customers with increased safeguard from shock due to current leakage.
product guarantee The campaign is an extension of Havells’
long‑standing thought leadership and commitment
We extended warranty period for all our consumer
to electrical safety. The digital film visually
products, ensuring that warranties/service
emphasises the risks of an electric shock in the
contracts ending between 22nd March 2020
absence of an RCCB – a very simple yet vital
and 31st May 2020 lasted till 30th June 2020.
device, which should be a part of every home.
The expansion of the warranty/contract period
The campaign was launched in the several local
ensured that our customers had one less
languages such as Bengali, Malayalam, Telugu,
thing to worry about! It further underlined our
Tamil and Kannada, apart from Hindi.
customer‑centric approach, delighting customers.
Customer safety is a key priority Next steps

In today’s connected world of IoT-enabled electrical We will continue to deliver best-in-class products
products, safety concerns have come to include data and services to our customers. Going forward, we
and privacy as well. At Havells, we ensure our products will focus on increasing our engagement with our
offer complete electrical and data safety and ensure customers by educating them on our offerings and
to maintain privacy of our customers. We follow all safe usage.
relevant national and international standards for product
safety such as Bureau of Indian Standards (BIS),
Japanese Industrial Standards (JIS) and others wherever
applicable. During the year we have not received any
complaints/incidents concerning breach of customer
privacy and loss of customer data.

66
Promoting a culture of collaboration

We understand that how our employees perceive Havells reflects our success in
engaging with them. We constantly connect with them, encouraging them to grow
with us. We are a Great Place to Work certified organisation. During the year, our
mantra for human resource function, ‘motivate and collaborate’ helped our leadership
team to continue to interact with them regularly, inspiring them to stay focused.
People strength
The Buddy Program

17,886 5,727 We initiated the Buddy Program for easier
Team size Permanent employees
cultural integration of our recruits, wherein
they are assigned a Buddy during the initial
30 days of their journey with us. The Buddy
12,159
could be from the same or any other
department and acts as a go-to-person for
any query, information or support needed,
Contractual employees sharing the organisation’s formal/informal
practices and ways of working. During the
year, the programme was made available to
115 employees in Sales and 94 employees
in CRI. Going forward, we will expand it to
Finding the right cultural fit include all recruits at Havells.
At Havells, we continuously strive to align employee

aspirations with organisational values and
ambitions, translating individual performance into
holistic organisational accomplishment.
Our rigorous, multi-layered hiring process is

designed to onboard talent who are culturally fit for
our organisation and are committed to grow with us.
This is re-affirmed by the fact that more than 35% of
our employees have been with us for over five years.
Our hiring policy (within India) concentrates on

preferred local recruiting. During the year, we
started using digital platforms for induction wherein
Learning and development
we emphasised providing our recruits information on At Havells, we invest significantly in training and
organisational structure, core values and others. re‑skilling programmes for our people that improve
their competencies and skillsets. During the year, as
our teams worked from home, they had access to
911 the latest technological tools that ensured continued

interactions between the management and the team.
We used this phase to encourage upskilling and
New employees recruited
learning across the organisation. Over 300 sessions
in FY 2020-21 on MS teams were conducted, including training
on functional/behavioural and technical topics.
These programmes were facilitated by our in-house
experts from various departments.
HAVELLS INDIA LTD.

67
Trainings for permanent

employees during FY 2020-21
During the year, we conducted the
training programmes on automation
and IoT, consultative selling skills,
9,000
application‑oriented products, Trade partners across
786 personal effectiveness, SFA India were participated

application, Sampark and E-Plus, in an online training
sampling plan, negotiation skills, session by Mr. Anil Rai
Total training sessions electronics best practices, financial Gupta (CMD)
trainings like COPA, Vistex and
2,682 service‑related trainings. These

initiatives were conducted online.
Total people trained Our online trainings were extended

to our trade partners, customers,
specifiers, retailers/dealers and ISPs.
25,703
Total person-hours of trainings

68
A performance-driven work
Trainings on cyber atmosphere
We promote meritocracy at Havells and have a strong
security performance management system (PMS) in place
that rewards and recognises talent based on their
We conducted Havells Security Training to create achievements. The PMS engages with our colleagues
awareness and training among our people about through a bi-annual dialogue that allows our teams to
cyber threats such as phishing, ransomware, engage in constructive feedbacks to assess performance.
credential compromise, account takeover
attacks and others. The training was delivered Performance management at Havells aims at building
through videos, wherein after watching them a high-performance culture and fair work environment
participants answered questions to test retention for both individuals and teams, to enable a collaborative
of the information. approach towards improving business processes on
a continuous basis. Today, over 95% employees are
assessed based on defined KRAs.
Learning on-the-go
Saksham is our on-the-go learning portal that
enhances the knowledge of our sales team on
the entire Havells product suite. A compulsory
programme, Saksham is accessible through
smartphones and computers. Team members
complete the allotted modules by an assigned date
and are then tested on their retention. They are
allowed to revise any number of times before
attempting the test.
Virtual training on new products

Training on new products is one of the most critical
areas of customer service. During the year, we
Recognition for our
quickly adopted technology and shifted the entire
training programme to the online platform through
people practices
tools like Microsoft Teams, Zoom and our own
We bagged the ‘Great Place To Work’ certification
Saksham App.
second year in a row and are among India’s
Top 50 – Best Companies to Work For 2020.
Our scores this year have even surpassed some
Nurturing future leaders to enable of the benchmarks set by the Great Place To
Work institution.
smooth transition
Our Alwar facility, completing 25 years is the
We are strengthening succession planning across
country’s largest integrated cable manufacturing
all levels of Havells. We identify high performers
plant. It awarded the Best Employer by Employers’
by exposing them to a variety of opportunities and
Association of Rajasthan for its excellent business
experiences and enabling their growth. In the last few
practices and people empowerment.
years, we have enabled job rotation and cross‑functional
movement at Havells to allow our colleagues to
undertake larger roles through Internal Job Postings
(IJPs). During the year, we encouraged horizontal and
vertical movements through IJPs. This also helped us
reduce our attrition rate by around two-thirds during the
year under review.
11%
Employee attrition rate
during FY 2020-21
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Diversity and inclusion

1,348
We are an equal opportunities employer and focus on
increasing diversity at the workplace. With two female Health and safety
Directors in our Board, we are gradually increasing diversity training programmes
at the apex decision-making level.
Inculcating safe practices
Currently, ~4.32% our team members are female. However,
we are working steadily to increase this number. We create safety awareness at our plants by
observing special days and occasions such as
Also, we have two specially-abled people as part of National Safety Day, Road Safety Week and others.
our team. During the year, 16 people from our team availed
maternity leave and of them 13 have already resumed work
with us. Ensuring safety at workplace
with social distancing
Safety is our collective responsibility Post the lockdown, we restarted our
manufacturing units with airtight social distancing
Occupational health and safety is non-negotiable for us and
measures. We integrated an AI-based technology
everyone at Havells is responsible for it. As a responsible
product, Trust AI, that uses artificial intelligence
employer, we have set up world-class safety systems across
and computer vision powered video analytics to
the organisation. We are an ISO 45001/OHSAS 18001
monitor our shopfloors and offices, issuing an alert
certified company and have organisation‑wide Integrated
when the desired distance between colleagues
Management System (IMS), Quality, Environment, Energy
is not maintained. The cost‑effective technology
and Health and Safety (QEEHS) policy. During the year, we
uses the already installed IP* and CCTV^ cameras
celebrated zero fatalities.
combined with computer vision and also detects
when people are not wearing masks, helmets
Zero occupational or safety gear. The alert is sent through email

or text messages to the factory administrator.
fatalities The application has a number of AI algorithms

to ensure effective alerts and monitoring.
This AI- and IoT‑based solution delivers insights
During FY 2020-21
that help in our digital transformation and
ensures business continuity.
Key elements of safety management *Internet Protocol (IP)

^Closed-Circuit Television Camera (CCTV)
systems
Safety governance structure Improving lost time injury frequency rate (LTIFR)
All our manufacturing units have a safety committee that FY 2020-21 0.1
encourages our colleagues to be more attuned towards
safe practices. The committees have equal representation FY 2019-20 0.2
from our permanent as well as contractual teammates. FY 2018-19 0.6
Safety practices and trainings

We conduct regular safety trainings through classroom
educations, fire-fighting demonstrations, daily toolbox talk Zero occupational
and others. Additionally, we organise specific work-related
health and safety trainings for our colleagues who work at illness frequency
rate (OIFR)
high occupational-disease-prone areas. We also conduct
various safety programmes and drills, where we focus on
instilling good practices like identifying probable hazards
and risks, reporting near miss and others. We also provide During FY 2020-21
our people with proper personal protective equipment
where needed.
Next steps
During the year, we conducted 1,348 health and safety
As our people are our most important asset, we work
training programmes for our people. Also, special emphasis
continuously to ensure their good health and safety.
was given on creating awareness and educating the staff
We are building a congenial work environment to
both through online and offline modes, on the rules and
provide safer and healthier work atmosphere.
guidelines to be followed in the wake of COVID.

70
Optimising the value chain

FY 2020-21 witnessed an unprecedented time of supply disruptions, uncertainty in
material availability, unpredictable lead time and high price volatility. This phase also
offered ample growth opportunities with pent-up demand. Our robust local supplier
base responded to this challenge by ensuring that our entire supply chain remained
flexible and agile to fulfil demand. During the year, we facilitated our micro, small and
medium enterprise (MSME) suppliers with easy financing that helped us leverage
sourcing of raw materials on time.
~80%
In the spirit of bolstering ‘Make in India, and, Vocal
for Local’ initiatives of the government, suppliers were
engaged in localisation drive to reduce dependency on
imported parts and products. Post COVID lockdown, Of our suppliers have a rejection
we established new norms for supplier assessment and rate of only 100 ppm
covered 130+ new suppliers virtually.
Upstream supply chain Monitoring supplier performance

We whole-heartedly support the Government of India As a corporate policy, Havells ensures fair and
initiative Atmanirbhar Bharat that focuses on local transparent business allocation to performing suppliers.
manufacturing, local markets and local supply chain. We have an automated vendor rating system to
Accordingly, ~76% of our total requirement is sourced categorise suppliers into various grades based on
from local and small vendors. We further support performance parameters such as quality, cost, delivery
these suppliers with skill enhancement and process and service. Monthly performance rating is shared with
improvement initiaitves. Continuous engagements are suppliers through GVP. In order to meet future business
practiced through vendor commitment meeting, vendor needs, we tightened the supplier performance criteria
audit, management reviews and suggestions system to for continuous upgradation. We ensure flawless quality
improve business relationship. by identifying critical parts and critical suppliers and
supporting them at the development stage through
~76%
Production Part Approval Process and Quality Risk
Assessment activities.
Of total raw materials expenditure was Sustainability management programme

made locally (in India)
We have been working to enhance our sourcing
practices, through process of risk analysis and risk
Robust vendor base control. This includes securing our supply chain on
various risks such as single source parts, import
We have strengthened our supplier base through
dependency and sustainability risks such as financial,
continuous improvement in the areas of process
statutory and regulatory, energy, environment, fire and
improvement, skill enhancement and technology
safety, social aspects like child labour, working conditions
upgradation. These parameters are further incorporated
and others. Our sustainability roadmap focuses on
in assessment and selection of new suppliers while
these areas and ensures that our sourcing methods are
onboarding them. Continuous engagement with suppliers
sustainable. According to our sustainability agenda,
is ensured through supplier meets, business reviews,
~250 suppliers covering 80% of the spend are identified
multiple training sessions and a two-way interactive
in sustainability initiative and assessed. As a corporate
online global vendor portal (GVP), ensuring end-to‑end
philosophy, Havells believes in conducting ethical, legal,
procure-to-pay (P2P) through digital transactions.
safe, fair and environmentally responsible business
Performing suppliers are recognised and rewarded
practices. We follow a zero tolerance approach towards
by enhanced business share and new business
non-compliance to Product Sourcing Agreement and our
opportunities. During lockdown, we conducted various
CoC, which are mandatory before onboarding suppliers
virtual sessions on vendor capability enhancement that
and reviewed periodically.
involved ~200 suppliers.
HAVELLS INDIA LTD.

71
Distribution channels
Our record performance during the year can be directly attributable to our distributors, dealers and
retailers who have worked in tandem with us to ensure the last-mile delivery of our products.
Robust distribution network
14,200+ ~1.8+ LAKHS 650+

Dealers Retailers Brand showrooms
Deeper penetration with fortified Dealer care

distribution network
Our dealer network is tempered with our strong bonds
We connect with local electricians and groom them as forged for years on the fire of mutual trust and enablement.
our brand ambassadors. These influencers then educate We have developed various dealer‑centric programmes
customers on the benefits of RCCB, MCB and other that provide health insurance and channel financing,
safety devices that ensure customer safety. among others.
Some initiatives that helped us earn their loyalties are
~1.5 LAKHS as follows:

Channel Financing offers Havells’ guarantee to banks

Electrician influencers on behalf of our dealers. This ensures our dealers buy
more stocks and reduces our debtor turnover ratio.
Initiated in 2007, Channel Financing offers discount to
dealers, decreasing their net interest payable as well
Largest brand shop Griha Lakshmi scheme started in 2014. It recognises

and empowers the wives of our channel partners for
channel in the industry their contribution in the growth of their husbands’
businesses, and thereby Havells. In this scheme,
We launched the Havells Galaxy stores to create a we directly remit the incentive amount to the lady’s
unique platform that allows our customers/potential bank account
users to experience our products. The flagship
Under the QRG Growth Fund, we manage some
stores showcase all our products, even if they aren’t
funds on behalf of our channel partners. We use an
sold in that particular region. Designed for the
independent asset management service to invest
modern consumer, they serve as the one-stop shop
a portion of our channel partners’ income on their
for delivering end-to-end solutions for customers’
behalf. Channel partners can retrieve the amount
electrical goods requirements. Similarly, we have
whenever needed
also launched exclusive brand showrooms for Lloyd
across the country, which host all products under
the brand.
Next steps
As on 31st March 2021, we enjoy the largest brand
We are strengthening our bonds with our channel
shop channel in the industry with 566 Havells
partners with focused initiatives that enable them to grow
Galaxy stores and 94 Lloyd brand shops.
alongside us. Going forward, we will continue to do so.

72
Driving inclusive development agenda

At Havells, we believe in inclusive growth and sustainable development.
We identify focused intervention areas and create a participatory model
for transformation. Our social programmes focus on holistic development of
school children and infrastructure of educational institutions, aiding in green
development and conserving the nation’s heritage.
Holistic development of
school-going children
Children are the future of India and we focus on
providing them holistic opportunities of growth with
programmes such as mid-day meals (for nutrition),
hygienic sanitation facilities (for healthy living), school
furniture and building infrastructure at government
schools (for education).
Mid-day meals
Our mid-day meal programme provides nutritious
meals according to government‑approved diet chart for
693 government schools across Alwar district, Rajasthan.
We prepare the meals in our modern kitchen (spread over
4 acres) and ensure on-schedule delivery using our fleet Note: Pre-pandemic image
of ~30 vans and an in-house app. We manage the entire
operation, from procurement to delivery, every day.
Since inception (in 2005), we have served over 90 million
meals to students.
During the year, this service was suspended due to the

pandemic, although we continued to provide dry rations
to our beneficiaries and served meals to those severely
impacted by pandemic.
Going forward, we intend to serve 90,000 mid-day meals.

The groundwork for the mission has been laid, with
applications filed with district authorities. Currently, we
are awaiting approval.
~90 MILLION
Mid-day meals served
since inception
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73
Hygienic sanitation Project Baala
We aim to provide school-going children a hygienic Through Project Baala, we create awareness about
learning ambience and initiated Water, Health menstruation among adolescent girls in rural India.
and Sanitation (WaSH) in 2013 to promote healthy As part of the project, we distributed re-usable sanitary
habits among them. WaSH is aligned to the Swachh napkins to over 1,46,000 girls studying in government
Bharat Mission and reaches 500 schools in Alwar schools of Alwar district, Rajasthan and Haridwar district,
district, Rajasthan. Uttarakhand till date. During the year, we distributed
66,740 kits in collaboration with Agha Khan, Project
With a 360-degree view on sanitation, over the Mumbai, Akshay Patra and others. Going forward, we look
years we have set up 4,096 eco-friendly bio-toilets to distribute many more sanitary kits to women and girls
in the government schools of Alwar and conducted from marginalised socio‑economic families.
sensitisation workshops. We also ensure to maintain
the infrastructure in these schools throughout the year.
4,000+ 1,46,000+
Bio-toilets constructed Beneficiaries of Project Baala
till date

74
Educational infrastructure These CoEs will increase our rural outreach, improving
business, upskill existing electricians/ technicians on our
We have been donating funds to educational institutions
products, provide trained technicians for our distribution
for developing infrastructure and providing scholarships
channels and upcoming brand stores.
to meritorious students to promote and support
education. We have been continuously supporting
Ashoka University with such funds over the years. Also, in
FY 2019‑20, we supported students from economically
weaker backgrounds by providing assistance to BML
Munjal Foundation.
Till date, we have donated ~2,500 bench and table sets,

benefiting at least 5,000 students in Alwar and Haridwar.
During the year, we donated ~200 benches and table sets.
Aiming towards skill development

In collaboration with Electronics Sector Skill Council of
India (ESSCI), we will develop micro entrepreneurship
ecosystem by establishing Centres of Excellence (CoEs).
These CoEs will help develop industry-ready electrical/
appliance labs and provide trainings for installation,
service and maintenance of domestic and industrial
electrical appliances, solar and renewable energy and
air conditioning systems. Moreover, these institutes will
connect distribution channels for last-mile sales/service
points and provide handholding to micro entrepreneurs to
launch their own business, besides continuing to provide
mentoring support. The trainees will receive Havells’
brand certificates.
HAVELLS INDIA LTD.

75
Green development
At Havells, we do not wish to create economic value at Kanya Upwan
the expense of the environment. Therefore, it is precisely
In association with the Alwar district administration
why we focus on rejuvenating our natural ecosystems and
in Rajasthan, we are developing 1.86 hectare of land
biodiversity by planting trees in and around the nearby
near Kati Ghati (Alwar) as Kanya Upvan for the next
areas of our manufacturing facilities.
five years. The initiative began in FY 2017-18 and
the administrative authorities have been planting a
We are also working towards growing into a wood
sapling on the birth of a girl child in the district. We are
and paper neutral organisation in the long run. During
landscaping the area to turn it into a local attraction.
FY 2020‑21, we planted over 5 Lakhs trees, of which
4 Lakhs were planted in Bhopal, Madhya Pradesh and
1 Lakh in Neemrana, Rajasthan. Since FY 2017-18, we have
planted overall more than 11 Lakhs tree saplings.
Number of trees planted (in Lakhs)
FY 2020-21 5
FY 2019-20 4.5
FY 2018-19 2
Most of our operations are in the industrial areas/zones.

None of our operational sites owned, leased and managed
are in or adjacent to protected areas and/or areas of high
biodiversity value outside protected areas. Also, there is
no International Union for Conservation of Nature (IUCN)
Red List species and national conservation list species with
habitats in areas affected by operations. Hence, there is no
impact in relation to concerning biodiversity aspects.
Conserving India’s heritage Next steps

In association with the Aga Khan Foundation India Our community care programmes focus on the entire
(AKFI), we are contributing towards the development lifecycle of a child born, from education with mid-day meals
of Humayun’s Tomb Interpretation Centre. The centre is and school infrastructure to hygienic living by providing
spread over 10,000 sqm and would be the first-of-its-kind proper sanitary conditions through bio-toilets and Project
facility planned at any of Delhi’s World Heritage Sites. Baala, skill development for livelihood, recreation options
It will also serve as a cultural public facility. Alongside, this such as Kanya Upawan and conserving heritage sites.
we will also conserve ‘Sabz Burj’, a nationally important Going forward, we will focus more on these programmes.
monument in New Delhi.

76
GRI Content Index

GRI Standard Disclosure Page number
GRI 102: General Organisational Profile

Disclosures 2016
102-1 Name of the organization Cover, Inside front cover
102-2 Activities, brands, products, and services Inside cover, 4, 6, 7
102-3 Location of headquarters 2, back cover
102-4 Location of operations 2
102-5 Ownership and legal form 5
102-6 Markets served 8 and 9
102-7 Scale of the organization 14, 20, 66, 67, 68, 69
102-8 Information on employees and other workers 14, 20, 66, 67, 68, 69
102-9 Supply chain 70
102-10 Significant changes to the organization and its None
supply chain
102-11 Precautionary Principle or approach 3
102-12 External initiatives 3, 5, 32
102-13 Membership of associations 5
Strategy
102-14 Statement from senior decision-maker 10, 11, 12, 13
102-15 Key impacts, risks, and opportunities 22, 30, 31
Ethics and Integrity Inside front cover
102-16 Values, principles, standards, and norms of behavior 27, 28, 29
102-17 Mechanisms for advice and concerns about ethics 33
Governance
102-18 Governance structure 27, 28, 29
102-19 Delegating authority 27, 28, 29
102-20 Executive-level responsibility for economic, environmental, 18, 22, 30, 58, 64
and social topics
102-21 Consulting stakeholders on economic, environmental, and 18, 22
social topics
102-22 Composition of the highest governance body and 27, 28, 29
its committees
102-23 Chair of the highest governance body 27, 28, 29
102-24 Nominating and selecting the highest governance body Read in Annual Report 2020-21
102-25 Conflicts of interest Read in Annual Report 2020-21
102-26 Role of highest governance body in setting purpose, 27, 28, 29
values, and strategy
102-27 Collective knowledge of highest governance body 27, 28, 29
102-28 Evaluating the highest governance body’s performance 27, 28, 29
102-29 Identifying and managing economic, environmental, and 16-21
social impacts
102-30 Effectiveness of risk management processes 22, 30, 31
102-31 Review of economic, environmental, and social topics 17
HAVELLS INDIA LTD.

77
A N N EXU R ES
102-32 Highest governance body’s role in sustainability reporting 18, 22, 30, 58, 64
102-33 Communicating critical concerns 3, 20, 23
102-34 Nature and total number of critical concerns 3, 20, 23
102-35 Remuneration policies Read in Annual Report 2020-21
102-36 Process for determining remuneration Read in Annual Report 2020-21
102-37 Stakeholders’ involvement in remuneration Read in Annual Report 2020-21
102-38 Annual total compensation ratio Read in Annual Report 2020-21
102-39 Percentage increase in annual total compensation ratio Read in Annual Report 2020-21
Stakeholder engagement
102-40 List of stakeholder groups 18, 22
102-41 Collective bargaining agreements Read in Annual Report 2020-21
102-42 Identifying and selecting stakeholders 18, 22
102-43 Approach to stakeholder engagement 18, 22
102-44 Key topics and concerns raised 18, 22
Reporting practice
102-45 Entities included in the consolidated financial statements Read in Annual Report 2020-21
102-46 Defining report content and topic Boundaries Inside front cover
102-47 List of material topics 3, 20, 23
102-48 Restatements of information Inside front cover
102-49 Changes in reporting None
102-50 Reporting period Inside front cover
102-51 Date of most recent report Inside front cover
102-52 Reporting cycle Inside front cover
102-53 Contact point for questions regarding the report 3
102-54 Claims of reporting in accordance with the GRI Standards Inside front cover
102-55 GRI content index 76, 77, 78, 79
102-56 External assurance 76, 77, 78, 79
ECONOMIC STANDARDS
Economic Performance
GRI 103: Management 103-1 Explanation of the material topic and its boundaries 34-39
Approach 2016
GRI 103-2: The management approach and its components 34-39
GRI 103-3: Evaluation of the management approach 34-39
GRI 201: Economic Disclosure 201-1 Direct economic value generated 35, 36, 37
Performance 2016 and distributed
Disclosure 201-2 Financial implications and other risks and 52-55
opportunities due to climate change
Disclosure 201-3 Defined benefit plan obligations and other Read in Annual Report 2020-21
retirement plans
Disclosure 201-4 Financial assistance received from government Read in Annual Report 2020-21

78
Indirect Economic Impacts

Approach 2016
GRI 203: Indirect Economic Disclosure 203-1 Infrastructure investments and 70-75
Impacts 2016 services supported
Disclosure 203-2 Significant indirect economic impacts 70-75
Procurement Practices
GRI 103: Management 103-1 Explanation of the material topic and its boundaries 70
Approach 2016
GRI 103-2: The management approach and its components 70
GRI 103-3: Evaluation of the management approach 70
GRI 204: Procurement Disclosure 204-1 Proportion of spending on local suppliers 70
Practices 2016
Anti-corruption
Approach 2016
GRI 205: Anti-corruption Disclosure 205-1 Operations assessed for risks related 32-33
2016 to corruption
Disclosure 205-2 Communication and training about anti- 32-33
corruption policies and procedures
Disclosure 205-3 Confirmed incidents of corruption and 32-33
actions taken
ENVIRONMENTAL STANDARDS
Materials
Approach 2016
GRI 301: Materials 2016 Disclosure 301-1 Materials used by weight or volume 60
Disclosure 301-2 Recycled input materials used 60
Disclosure 301-3 Reclaimed products and their 60
packaging materials
Energy
Approach 2016
GRI 302: Energy 2016 Disclosure 302-1 Energy consumption within the organization 56
Disclosure 302-2 Energy consumption outside of the organization 60
Disclosure 302-3 Energy intensity 57
Disclosure 302-4 Reduction of energy Consumption 57
Disclosure 302-5 Reductions in energy requirements of products 38-45
and services
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79
A N N EXU R ES
Water and Effluents

GRI 103: Management 103-1 Explanation of the material topic and its boundaries 58, 59
Approach 2016
GRI 103-2: The management approach and its components 58, 59
GRI 103-3: Evaluation of the management approach 58, 59
GRI 303: Water and Effluents Disclosure 303-1 Interactions with water as a shared resource 58-59
2018 (MA)
Disclosure 303-2 Management of water discharge-related 58-59
impacts (MA)
Disclosure 303-3 Water withdrawal 58-59
Disclosure 303-4 Water discharge 58-59
Disclosure 303-5 Water consumption 58-59
Biodiversity
Approach 2016
GRI 304: Biodiversity 2016 Disclosure 304-1 Operational sites owned, leased, managed in, or 75
adjacent to, protected areas and areas of high biodiversity value
outside protected areas
Disclosure 304-2 Significant impacts of activities, products, and 75
services on biodiversity
Disclosure 304-3 Habitats protected or restored 75
Disclosure 304-4 IUCN Red List species and national 75
conservation list species with habitats in areas affected
by operations
Emissions
Approach 2016
GRI 305: Emissions 2016 Disclosure 305-1 Direct (Scope 1) GHG emissions 54-55
Disclosure 305-2 Energy indirect (Scope 2) GHG emissions 54-55
Disclosure 305-3 Other indirect (Scope 3) GHG emissions 54-55
Disclosure 305-4 GHG emissions intensity 54-55
Disclosure 305-5 Reduction of GHG emissions 54-55
Disclosure 305-6 Emissions of ozone-depleting substances 55
(ODS)
Disclosure 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and 55
other significant air emissions

80
Effluents and Waste

Approach 2016 GRI 103-2: The management approach and its components 60-61
GRI 306: Effluents and Waste Disclosure 306-1 Water discharge by quality and destination 61
2016 Disclosure 306-2 Waste by type and disposal method 61
Disclosure 306-3 Significant spills 61
Disclosure 306-4 Transport of hazardous waste 60-61
Disclosure 306-5 Water bodies affected by water discharges and/ 60-61
or runoff
Environmental Compliance
Approach 2016 GRI 103-2: The management approach and its components 32
GRI 307: Environmental Disclosure 307-1 Non-compliance with environmental laws 32
Compliance 2016 and regulations
Supplier Environmental Assessment
Approach 2016 GRI 103-2: The management approach and its components 70
GRI 308: Supplier Disclosure 308-1 New suppliers that were screened using 70
Environmental Assessment environmental criteria
2016
Disclosure 308-2 Negative environmental impacts in the supply 70
chain and actions taken
SOCIAL STANDARDS
Employment
Approach 2016
GRI 401: Employment 2016 Disclosure 401-1 New employee hires and employee turnover 66
Disclosure 401-2 Benefits provided to full-time employees that are 66-69
not provided to temporary or part-time employees
Disclosure 401-3 Parental leave 66
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81
A N N EXU R ES
Occupational Health & Safety

Approach 2016
GRI 403: Occupational Disclosure 403-1 Occupational health and safety management 69
Health and Safety 2018 system (MA)
Disclosure 403-2 Hazard identification, risk assessment, and 69
incident investigation (MA)
Disclosure 403-3 Occupational health services (MA) 69
Disclosure 403-4 Worker participation, consultation, and 69
communication on occupational health and safety (MA)
Disclosure 403-5 Worker training on occupational health and 69
safety (MA)
Disclosure 403-6 Promotion of worker health (MA) 69
Disclosure 403-7 Prevention and mitigation of occupational health 69
and safety impacts directly linked by business relationships (MA)
Disclosure 403-8 Workers covered by an occupational health and 69
safety management system
Disclosure 403-9 Work-related injuries 69
Disclosure 403-10 Work-related ill health 69
Training and Education
Approach 2016
GRI 404: Training and Disclosure 404-1 Average hours of training per year per employee 67
Education 2016
Disclosure 404-2 Programs for upgrading employee skills and 66-67
transition assistance programs
Disclosure 404-3 Percentage of employees receiving regular 66-67
performance and career development reviews
Diversity and Equal Opportunity
Approach 2016
GRI 405: Diversity and Equal Disclosure 405-1 Diversity of governance bodies and employees 68-69
Opportunity 2016
Disclosure 405-2 Ratio of basic salary and remuneration of 68-69
women to men

82
Non-Discrimination
Approach 2016
GRI 406: Non-discrimination Disclosure 406-1 Incidents of discrimination and corrective 32
2016 actions taken
Child Labor
Approach 2016
GRI 408: Child Labor 2016 Disclosure 408-1 Operations and suppliers at significant risk for 32
incidents of child labor
Forced or Compulsory Labor
Approach 2016
GRI 409: Forced or Disclosure 409-1 Operations and suppliers at significant risk for 32
Compulsory Labor 2016 incidents of forced or compulsory labor
Human Rights Assessment
Approach 2016
GRI 412: Human Rights Disclosure 412-1 Operations that have been subject to human 32
Assessment 2016 rights reviews or impact assessments
Disclosure 412-2 Employee training on human rights policies 32
or procedures
Disclosure 412-3 Significant investment agreements and contracts 32
that include human rights clauses or that underwent human
rights screening
Local Communities
Approach 2016
GRI 413: Local Communities Disclosure 413-1 Operations with local community engagement, 72-75
2016 impact assessments, and development programs
Disclosure 413-2 Operations with significant actual and potential 72-75
negative impacts on local communities
HAVELLS INDIA LTD.

83
A N N EXU R ES
Supplier Social Assessment

Approach 2016
GRI 414: Supplier Social Disclosure 414-1 New suppliers that were screened using 70
Assessment 2016 social criteria
Disclosure 414-2 Negative social impacts in the supply chain and 70
actions taken
Customer Health and Safety
Approach 2016
GRI 416: Customer Health Disclosure 416-1 Assessment of the health and safety impacts of 65
and Safety 2016 product and service categories
Disclosure 416-2 Incidents of non-compliance concerning the 65
health and safety impacts of products and services
Marketing and Labeling
Approach 2016
GRI 417: Marketing and Disclosure 417-1 Requirements for product and service 32
Labeling 2016 information and labeling
Disclosure 417-2 Incidents of non-compliance concerning product 32
and service information and labeling
"Disclosure 417-3 Incidents of non-compliance concerning 32
marketing communications"
Customer Privacy
Approach 2016
GRI 418: Customer Privacy Disclosure 418-1 Substantiated complaints concerning breaches 65
2016 of customer privacy and losses of customer data
Socioeconomic Compliance
Approach 2016
GRI 419: Socioeconomic Disclosure 419-1 Non-compliance with laws and regulations in the 32
Compliance 2016 social and economic area

84
Assurance Statement
KPMG Assurance and Consulting Services Telephone: +91 124 336 9000
LLP
Fax: +91 124 336 9001
Building No. 10, 4th Floor, Tower-C
Internet: www.kpmg.com/in
DLF Cyber City, Phase - II
Gurugram - 122 002 (India)
Independent Limited Assurance Statement to Havells India Limited on their Sustainability Report
for Financial Year 2020-21
To the Management of Havells India Limited,
QRG Towers, 2D,
Sector 126, Noida- Greater Noida Expressway Noida,
Uttar Pradesh- 201304.
Introduction
Havells India Limited (‘the Company’ or ‘HIL’) has requested KPMG Assurance and consulting Services LLP (‘KPMG’,
or We) to provide an independent assurance on its Sustainability Report 2020-21 (‘the Report’).
The Company’s management is responsible for identifying its material topics, engaging with its stakeholders and
developing the content of the Report.
KPMG’s responsibility is to provide limited assurance on the Report content as described in the scope of assurance.
Reporting Criteria
HIL applies its sustainability performance reporting criteria, derived from the ‘In-accordance Comprehensive’ option as
per Sustainability Reporting Standards of GRI as detailed in the ‘Report scope and boundary’.
Assurance standards used
We conducted the assurance in accordance with
• Limited Assurance requirements of International Federation of Accountants’ (IFAC) International Standard on

Assurance Engagement [(ISAE) 3000, (Revised) Assurance Engagements Other than Audits or Reviews of
Historical Financial Information]. Under this standard, we have reviewed the selected information presented in
the Report against the principles of relevance, completeness, reliability, neutrality and understandability.
Boundary Scope, and Limitations
The following is covered under the scope and boundary of the assurance engagement:
• The scope of assurance covers the sustainability performance of HIL’s sustainability performance disclosures
for the period of 01 April 2020 to 31 March 2021, as per the table below.
• The boundary of the report includes the data and information from HIL sites as mentioned in the Sustainability
Report section – Reporting Boundary:
o Haridwar (Uttarakhand)
o Neemrana (Rajasthan)
o Alwar (Rajasthan)
o Baddi (Himachal Pradesh)
o Faridabad (Haryana)
o Ghiloth, (Rajasthan)
o Sahibabad (Uttar Pradesh)
o Corporate Office, Noida (Uttar Pradesh)
• The assurance scope excludes:

o Aspects of the report other than those mentioned in the table below;
o The Company’s financial performance;
o Data and information outside the defined reporting period;
o The Company’s statements that describe expression of opinion, belief, aspiration, expectation, aim
or future intention provided by the Company and assertions related to Intellectual Property Rights
and other competitive issues.
HAVELLS INDIA LTD.

85
A N N EXU R ES
The disclosures subject to assurance as per GRI Standards were as follows:
Standard Disclosures Topic-Specific Standard Disclosures

• Organizational Profile: GRI 102-8 and GRI • Environment: Energy (GRI 302-1 to 302-5), Water and
102-13 Effluents (GRI 303-1 to GRI 303-5), Emissions (GRI
• Strategy and Analysis: GRI 102-14 305-1 to 305-7), Effluents and waste (GRI 306-1 to 306-
• Ethics and Integrity: GRI 102-16 5), Compliance (GRI 307-1)
• Governance: GRI 102-18 • Labour Practices and Decent Work: Employment (GRI
• Stakeholder Engagement: GRI 102-40 to GRI 401-1 to GRI 401-3), Occupational Health and Safety
102-44 (GRI 403-1 to 403-10), Training and Education (GRI
• Reporting Practice: GRI 102-45 to GRI 102-56 404-1 to GRI 404-3), Diversity (GRI 405-1 to GRI 405-
• Management Approach: 103-1 to 103-3 2), Non-Discrimination (GRI 406-1), Child Labor (GRI
408-1), Forced or Compulsory Labor (GRI 409-1),
Security Practices (GRI 410-1), Human Rights
Assessment (GRI 412-1 to GRI 412-3), Local
Communities (GRI 413-1 to GRI 413-2)
• Supply Chain: Supplier Social Assessment (GRI 414-1
to GRI 414-2), Supplier Environmental Assessment
(GRI 308-1)
• Public Policy (GRI 415-1)
• Product Responsibility: Customer Privacy (GRI 418-1),
Marketing and Labelling (GRI 417-1 to GRI 417-3)
Assurance procedures
We have obtained sample evidence, information and explanations that were considered necessary in relation to the
assurance scope and have arrived at conclusions mentioned below. Our work included a range of evidence-gathering
procedures including:
• Assessing that the report is prepared in accordance with the GRI Standards: Comprehensive option.
• Understanding the appropriateness of various assumptions used for estimation of data by HIL.
• Verifying systems and procedures used for quantification, collation and analysis of sustainability
performance indicators included in the Report.
• Assessing the systems used for data collection and reporting of the Universal Standard Disclosures and
Topic-Specific Standard Disclosures of material aspects as listed in the assurance scope above.
• Reviewing the Report to ensure that there is no misrepresentation of disclosures as per scope of assurance
and our findings.
• Reviewing the materiality and stakeholder engagement framework deployed at HIL.
• Testing on a sample basis, the evidence supporting the data and information.
• Holding discussion with senior executives at the plant locations and at the corporate office to understand the
risks and opportunities from a sustainability perspective including the strategy that HIL has adopted to
address the same.
• Assessing data reliability and accuracy.
• Verifying select key performance data through site visits to operational locations and corporate office for:
o Testing reliability and accuracy of data on a sample basis.
o Assessing stakeholder engagement process through interactions with relevant internal stakeholders
and review of related documentation.
o Limited review of the materiality assessment process.
o Reviewing the processes deployed for collection, compilation and reporting of sustainability
performance indicators at corporate and plant level.
Appropriate documentary evidence was obtained to support our conclusions on the information and data verified. Where
such documentary evidence could not be collected on account of confidential information our team verified the same at
HIL’s premises.
Conclusions
We have reviewed the Sustainability Report of HIL. Based on our review and procedures performed as described above,
nothing has come to our attention that causes us not to believe that the sustainability data and information presented
in the Report is appropriately stated, in material aspects, and in accordance with GRI Standards.
We have provided our observation to the company in a separate management letter. These, do not, however, affect
our conclusions regarding the Report.
CLASSIFICATION | PUBLIC
86
Independence
The assurance was conducted by a multidisciplinary team including professionals with suitable skills and experience in
auditing environmental, social and economic information in line with the requirements of the ISAE 3000 (revised)
standard. Our work was performed in conformance to the requirements of the IFAC Code of Ethics for Professional
Accountants, which requires, among other requirements, that the members of the assurance team (practitioners) as
well as the assurance firm (assurance provider) be independent of the assurance client, in relation to the scope of this
assurance engagement, including not being involved in writing the Report. The Code also includes detailed
requirements for practitioners regarding integrity, objectivity, professional competence and due care, confidentiality and
professional behavior. KPMG has systems and processes in place to monitor compliance with the Code and to prevent
conflicts regarding independence. The firm applies International Standard on Quality Control (ISQC) 1 and the
practitioner complies with the applicable independence and other ethical requirements of the International Ethics
Standards Board for Accountants (IESBA) code
Responsibilities
HIL is responsible for developing the Report contents. HIL is also responsible for identification of material sustainability
issues, establishing and maintaining appropriate performance management and internal control systems and derivation
of performance data reported. This statement is made solely to the Management of HIL in accordance with the terms
of our engagement and as per scope of assurance. Our work has been undertaken so that we might state to HIL those
matters for which we have been engaged to state in this statement and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than HIL for our work, for this Report, or
for the conclusions expressed in this independent assurance statement. The assurance engagement is based on the
assumption that the data and information provided to us is complete and true. We expressly disclaim any liability or co-
responsibility for any decision a person or entity would make based on this assurance statement. By reading this
assurance statement, stakeholders acknowledge and agree to the limitations and disclaimers mentioned above.
Manpreet Singh
Partner
KPMG Assurance and Consulting Services LLP
Dated: 11 May 2021
HAVELLS INDIA LTD.
CLASSIFICATION | PUBLIC
87
A N N EXU R ES
Notes

Regd. Office: 904, 9th Floor, Surya Kiran Building, K G Marg, Connaught Place, New Delhi – 110 001
Corp. Office: QRG Towers, 2D, Sector 126, Expressway, Noida – 201 304, Uttar Pradesh, India
Ph.: +91-120-3331000, Fax: +91-120-3332000
Email: marketing@havells.com
www.havells.com
Consumer Care No.: 1800 11 0303, 1800 103 1313 (All Connections), 011- 41660303 (Landline)
Join us on Facebook at www.facebook.com/havells and share your ways to save the planet!
CIN: L31900DL1983PLC016304
HAVELLS INDIA LTD.

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2nd June, 2021

The National Stock Exchange of India Limited BSE Limited

NSE Symbol : HAVELLS

Sub: Annual Report for FY 2020-21 alongwith Notice of AGM

Kindly acknowledge receipt.

(Sanjay Kumar Gupta)

CLASSIFICATION | EXTERNAL PRINT

2.  ince this AGM is being held through VC/ OAVM pursuant to

Sl. No. Particulars Withholding tax rate Declaration(s)/ document(s) required

Sl. No. Particular Declaration(s)/ document(s) required

Sl. Category Withholding Declaration(s)/ document(s) required

The Scrutinizer shall immediately after the conclusion of

Type of shareholders Login Method

How to Log-in to NSDL e-Voting website? (ii) 

2. Only those Members/ shareholders, who will be present in the

The Company has also received consent and eligibility letter

The Company has received consent in writing to act as Director

Disclosure u/r 36(3) of SEBI (Listing Obligations and Disclosure

The Board upon the recommendation of the Nomination and

QRG Investments and Holdings

Actively engaged in the Social

Sub: Updation of KYC Details in the Master Data

Assuring you of our best services.

(Sanjay Kumar Gupta)

Dear Sir/ Madam,

B For registering Bank details of the registered shareholder

E For updating the Mobile No

Sign:_______________ Sign:_______________ Sign:__________________ Sign:__________________

Creating Delivering Sustaining

Integrated Statutory Financial

A commitment A commitment to A commitment to be A commitment to

Creating. Delivering. Sustaining.

Robust balance sheet, domestic

We maintain a constant focus on

Contributing to UN Our material matters Aligned with IIRC

FINANCIAL MANUFACTURED INTELLECTUAL

and technology to produce most

HUMAN NATURAL SOCIAL & RELATIONSHIP

Our Valued Shareholders,

A challenging year exemplary contribution and efforts. Creating, delivering and

Havells, a Bellwether Megatrends

electrical goods industry. We are an The recent impetus to ‘AatmaNirbhar

Frost Free Side-by-Side Direct Cool Purodry Fully Automatic Front

Our Direct Presence Across India

Haryana Delhi 1 1 Arunachal

A Complete Consumer Durable Player

Numbers We are proud of our lineage and increased

that are the most penetrated household brand in

At Havells India Limited, we are a

Lighting & Fixtures Cable

Professional Lighting Consumer Lighting Power Cables Flexible Cables

Others Lloyd Consumer

Motors Solar Pump AC TV

Personal Grooming Water Purifier Refrigerator Washing Machines

Net Revenue EBIDTA & EBIDTA Margin

EBIDTA (` in Crores) EBIDTA Margin (%)

Profit Before Tax and Exceptional Items Return on Average Capital

Earnings Per Share (`) and

FY17 FY18 FY19 FY20 FY21

FY18 1.47 FY18 6.58

2. ince this AGM is being held through VC/ OAVM pursuant to

The Scrutinizer shall immediately after the conclusion of

How to Log-in to NSDL e-Voting website? (ii)

2. Only those Members/ shareholders, who will be present in the

Sign:_______ Sign:_ Sign: Sign:______