Httpshavells.comir 2023pdfFINANCIAL20STATEMENTS.pdf

Integrated Report Statutory Reports Financial Statements
Standalone
Independent Auditor’s Report

To the Members of Havells India Limited Basis for Opinion
3. We conducted our audit in accordance with the Standards
Report on the Audit of the Standalone Financial on Auditing (SAs) specified under Section 143(10) of
Statements the Act. Our responsibilities under those Standards are
further described in the “Auditor’s Responsibilities for the
Opinion Audit of the Financial Statements” section of our report.
1. We have audited the accompanying standalone financial We are independent of the Company in accordance with
statements of Havells India Limited (“the Company”), the Code of Ethics issued by the Institute of Chartered
which comprise the Standalone Balance Sheet as at Accountants of India together with the ethical requirements
March 31, 2023, and the Standalone Statement of Profit that are relevant to our audit of the financial statements
and Loss (including Other Comprehensive Income), the under the provisions of the Act and the Rules thereunder,
Standalone Statement of Changes in Equity and the and we have fulfilled our other ethical responsibilities
Standalone Statement of Cash Flows for the year then in accordance with these requirements and the Code
ended, and notes to the financial statements, including of Ethics. We believe that the audit evidence we have
a summary of significant accounting policies and other obtained is sufficient and appropriate to provide a basis
explanatory information. for our opinion.
2. In our opinion and to the best of our information and Key audit matters
according to the explanations given to us, the aforesaid 4. Key audit matters are those matters that, in our
standalone financial statements give the information required professional judgement, were of most significance in our
by the Companies Act, 2013 (“the Act”) in the manner so audit of the standalone financial statements of the current
required and give a true and fair view in conformity with period. These matters were addressed in the context
the accounting principles generally accepted in India, of the of our audit of the standalone financial statements as a
state of affairs of the Company as at March 31, 2023, and whole and in forming our opinion thereon, and we do not
total comprehensive income (comprising of profit and other provide a separate opinion on these matters. We have
comprehensive income), changes in equity and its cash determined the matter described below to be the key
flows for the year then ended. audit matters to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Assessment of impairment of goodwill and intangible Our audit procedures among others, included the
assets with indefinite useful lives following:
Refer Note 4 to the standalone financial statements. a. Understanding and evaluating the design and operating
effectiveness of internal controls over the impairment
As at March 31, 2023, the standalone financial statements assessment process, including preparation of the DCF model;
include goodwill of ` 310.47 crores and intangible assets with
indefinite useful lives of ` 1,029 crores pertaining to acquisition b. Evaluating the Company’s accounting policy in respect of
of Lloyd business in an earlier year. impairment assessment of goodwill and intangible assets
with indefinite useful lives;
In accordance with the requirements of Indian Accounting
Standard (Ind AS) 36 ‘Impairment of Assets’, the management c. Understanding the cash flow projections and assumptions
has allocated the said goodwill and intangible assets to the used in the DCF model, evaluating the mathematical accuracy
underlying Cash Generating Unit (CGU) and tested the same and reading the report of the management’s expert;
for impairment using a Discounted Cash Flow (DCF) model. d. Together with auditor’s valuation experts, testing the
Based on such testing, the recoverable amount of the CGU appropriateness of the DCF model and key assumptions
is higher than the carrying amount of the said assets and therein and performing sensitivity analysis over key
accordingly no adjustment for impairment is necessary. assumptions to corroborate that the recoverable amount
We considered this as a key audit matter because of the of the CGU is within a reasonable range; and
significant carrying value of the above mentioned assets and e. Testing related presentation and disclosures in the
high estimation uncertainty in assumptions used such as standalone financial statements.
discount rate, rate of growth over the estimation period and
terminal growth rate which are affected by future market and Based on the above procedures performed, the management’s
economic conditions and, hence, are inherently uncertain. impairment assessment of the goodwill and intangible assets
was found to be reasonable.
Integrated Annual Report 2022-23 153

Other Information Auditor’s responsibilities for the audit of the financial
5. The Company’s Board of Directors is responsible for the statements
other information. The other information comprises the 8. Our objectives are to obtain reasonable assurance about
information included in the Annual report but does not whether the financial statements as a whole are free from
include the financial statements and our auditor’s report material misstatement, whether due to fraud or error, and
thereon. to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is
Our opinion on the financial statements does not cover not a guarantee that an audit conducted in accordance
the other information and we do not express any form of with SAs will always detect a material misstatement when
assurance conclusion thereon. it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate,
In connection with our audit of the financial statements, they could reasonably be expected to influence the
our responsibility is to read the other information and, economic decisions of users taken on the basis of these
in doing so, consider whether the other information financial statements.
is materially inconsistent with the financial statements
or our knowledge obtained in the audit or otherwise 9. As part of an audit in accordance with SAs, we exercise
appears to be materially misstated. If, based on the work professional judgement and maintain professional
we have performed, we conclude that there is a material scepticism throughout the audit. We also:
misstatement of this other information, we are required to
report that fact. • Identify and assess the risks of material
misstatement of the financial statements, whether
We have nothing to report in this regard. due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
Responsibilities of management and those audit evidence that is sufficient and appropriate
charged with governance for the financial to provide a basis for our opinion. The risk of not
statements detecting a material misstatement resulting from
6. The Company’s Board of Directors is responsible for the fraud is higher than for one resulting from error,
matters stated in Section 134(5) of the Act with respect to as fraud may involve collusion, forgery, intentional
the preparation of these standalone financial statements omissions, misrepresentations, or the override of
that give a true and fair view of the financial position, internal control.
financial performance, changes in equity and cash flows
of the Company in accordance with the accounting • Obtain an understanding of internal control relevant
principles generally accepted in India, including the to the audit in order to design audit procedures that
Accounting Standards specified under Section 133 of are appropriate in the circumstances. Under Section
the Act. This responsibility also includes maintenance 143(3)(i) of the Act, we are also responsible for
of adequate accounting records in accordance with the expressing our opinion on whether the Company has
provisions of the Act for safeguarding of the assets of the adequate internal financial controls with reference
Company and for preventing and detecting frauds and to financial statements in place and the operating
other irregularities; selection and application of appropriate effectiveness of such controls.
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation • Evaluate the appropriateness of accounting policies
and maintenance of adequate internal financial controls, used and the reasonableness of accounting
that were operating effectively for ensuring the accuracy estimates and related disclosures made by
and completeness of the accounting records, relevant management.
to the preparation and presentation of the financial
statements that give a true and fair view and are free from • Conclude on the appropriateness of management’s
material misstatement, whether due to fraud or error. use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
7. In preparing the financial statements, management a material uncertainty exists related to events or
is responsible for assessing the Company’s ability to conditions that may cast significant doubt on the
continue as a going concern, disclosing, as applicable, Company’s ability to continue as a going concern.
matters related to going concern and using the going If we conclude that a material uncertainty exists, we
concern basis of accounting unless management either are required to draw attention in our auditor’s report
intends to liquidate the Company or to cease operations, to the related disclosures in the financial statements
or has no realistic alternative but to do so. Those Board or, if such disclosures are inadequate, to modify our
of Directors are also responsible for overseeing the opinion. Our conclusions are based on the audit
Company’s financial reporting process. evidence obtained up to the date of our auditor’s
154 Havells India Limited

Standalone
report. However, future events or conditions may of Cash Flows dealt with by this Report are in
cause the Company to cease to continue as a going agreement with the books of account.
concern.
(d) In our opinion, the aforesaid standalone financial
• Evaluate the overall presentation, structure and statements comply with the Accounting Standards
content of the financial statements, including the specified under Section 133 of the Act.
disclosures, and whether the financial statements
represent the underlying transactions and events in (e) On the basis of the written representations received
a manner that achieves fair presentation. from the directors as on March 31, 2023, taken
on record by the Board of Directors, none of the
10. We communicate with those charged with governance directors is disqualified as on March 31, 2023, from
regarding, among other matters, the planned scope and being appointed as a director in terms of Section
timing of the audit and significant audit findings, including 164(2) of the Act.
any significant deficiencies in internal control that we
identify during our audit. (f) With respect to the adequacy of the internal financial
controls with reference to financial statements of the
11. We also provide those charged with governance with Company and the operating effectiveness of such
a statement that we have complied with relevant controls, refer to our separate Report in “Annexure A”.
ethical requirements regarding independence, and to
communicate with them all relationships and other (g) With respect to the other matters to be included in
matters that may reasonably be thought to bear on our the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014 (as
independence, and where applicable, related safeguards.
amended), in our opinion and to the best of our information
12. From the matters communicated with those charged with and according to the explanations given to us:
governance, we determine those matters that were of
i. The Company has disclosed the impact of
most significance in the audit of the financial statements
pending litigations on its financial position in its
of the current period and are therefore the key audit
standalone financial statements – Refer Note
matters. We describe these matters in our auditor’s report
31 to the standalone financial statements;
unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we
ii. The Company was not required to recognise
determine that a matter should not be communicated in
a provision as at March 31, 2023 under the
our report because the adverse consequences of doing
applicable law or accounting standards, as it
so would reasonably be expected to outweigh the public
does not have any material foreseeable losses on
interest benefits of such communication. long-term contract. The Company did not have
any derivative contracts as at March 31, 2023.
Report on other legal and regulatory requirements
13. As required by the Companies (Auditor’s Report) Order, iii. There has been no delay in transferring
2020 (“the Order”), issued by the Central Government amounts, required to be transferred, to the
of India in terms of sub-section (11) of Section 143 of Investor Education and Protection Fund by the
the Act, we give in the Annexure B a statement on the Company during the year.
matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable. iv. (a) The management has represented that,
to the best of its knowledge and belief,
14. As required by Section 143(3) of the Act, we report that: as disclosed in the notes to the accounts,
no funds have been advanced or loaned
(a) We have sought and obtained all the information and or invested (either from borrowed funds
explanations which to the best of our knowledge and or share premium or any other sources or
belief were necessary for the purposes of our audit. kind of funds) by the Company to or in
any other person(s) or entity(ies), including
(b) In our opinion, proper books of account as required foreign entities (“Intermediaries”), with
by law have been kept by the Company so far as it the understanding, whether recorded in
appears from our examination of those books. writing or otherwise, that the Intermediary
shall, whether, directly or indirectly, lend or
(c) The Standalone Balance Sheet, the Standalone invest in other persons or entities identified
Statement of Profit and Loss (including other in any manner whatsoever by or on behalf
comprehensive income), the Standalone Statement of the Company (“Ultimate Beneficiaries”)
of Changes in Equity and the Standalone Statement or provide any guarantee, security or the

like on behalf of the Ultimate Beneficiaries v. The dividend declared and paid during the year
(Refer Note 32(19)(ii) to the standalone by the Company is in compliance with Section
financial statements); 123 of the Act.
(b) The management has represented that, 15. The Company has paid/ provided for managerial
to the best of its knowledge and belief, as remuneration in accordance with the requisite approvals
disclosed in the notes to the accounts, no
mandated by the provisions of Section 197 read with
funds have been received by the Company
Schedule V to the Act.
from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with the
16. As proviso to Rule 3(1) of the Companies (Accounts)
understanding, whether recorded in writing
or otherwise, that the Company shall, Rules, 2014 (as amended), which provides for the feature
whether, directly or indirectly, lend or invest of recording of audit trail (edit log) facility in the accounting
in other persons or entities identified in any software used by the Company for maintenance of books
manner whatsoever by or on behalf of the of account and related matters, is applicable for the
Funding Party (“Ultimate Beneficiaries”) Company only with effect from financial year beginning
or provide any guarantee, security or the April 1, 2023, the reporting under clause (g) of Rule 11 is
like on behalf of the Ultimate Beneficiaries currently not applicable.
(Refer Note 32(19)(ii) to the standalone
financial statements); and For Price Waterhouse & Co Chartered Accountants LLP
Firm Registration Number: 304026E/E-300009
(c) Based on such audit procedures that we
considered reasonable and appropriate in
the circumstances, nothing has come to Sougata Mukherjee
our notice that has caused us to believe that Partner
the representations under sub-clause (a) Place: Gurugram Membership Number: 057084
and (b) contain any material misstatement. Date: May 03, 2023 UDIN: 23057084BGYFRB3443

Standalone
Annexure A to Independent Auditor’s Report
Referred to in paragraph 14(f) of the Independent Auditor’s Report of even date to the
members of Havells India Limited on the standalone financial statements for the year
ended March 31, 2023
Report on the Internal Financial Controls with reference 4. Our audit involves performing procedures to obtain audit
to Financial Statements under clause (i) of sub-section evidence about the adequacy of the internal financial
3 of Section 143 of the Act controls system with reference to financial statements
1. We have audited the internal financial controls with and their operating effectiveness. Our audit of internal
reference to financial statements of Havells India Limited financial controls with reference to financial statements
(“the Company”) as of March 31, 2023 in conjunction included obtaining an understanding of internal financial
with our audit of the standalone financial statements of controls with reference to financial statements, assessing
the Company for the year ended on that date. the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness
Management’s Responsibility for Internal Financial of internal control based on the assessed risk. The
Controls procedures selected depend on the auditor’s judgement,
2. The Company’s management is responsible for including the assessment of the risks of material
establishing and maintaining internal financial controls misstatement of the financial statements, whether due to
based on the internal control over financial reporting fraud or error.
criteria established by the Company considering the
essential components of internal control stated in the 5. We believe that the audit evidence we have obtained
Guidance Note on Audit of Internal Financial Controls is sufficient and appropriate to provide a basis for our
Over Financial Reporting (“the Guidance Note”) issued by audit opinion on the Company’s internal financial controls
the Institute of Chartered Accountants of India (“ICAI”). system with reference to financial statements.
These responsibilities include the design, implementation
and maintenance of adequate internal financial controls Meaning of Internal Financial Controls with reference
that were operating effectively for ensuring the orderly
to financial statements
and efficient conduct of its business, including adherence
to company’s policies, the safeguarding of its assets, 6. A company’s internal financial controls with reference to
the prevention and detection of frauds and errors, the financial statements is a process designed to provide
accuracy and completeness of the accounting records, reasonable assurance regarding the reliability of financial
and the timely preparation of reliable financial information, reporting and the preparation of financial statements
as required under the Act. for external purposes in accordance with generally
accepted accounting principles. A company’s internal
Auditor’s Responsibility financial controls with reference to financial statements
3. Our responsibility is to express an opinion on the includes those policies and procedures that (1) pertain
Company’s internal financial controls with reference to to the maintenance of records that, in reasonable
financial statements based on our audit. We conducted detail, accurately and fairly reflect the transactions and
our audit in accordance with the Guidance Note and the dispositions of the assets of the company; (2) provide
Standards on Auditing deemed to be prescribed under reasonable assurance that transactions are recorded as
Section 143(10) of the Act to the extent applicable to an necessary to permit preparation of financial statements
audit of internal financial controls, both applicable to an in accordance with generally accepted accounting
audit of internal financial controls and both issued by the principles, and that receipts and expenditures of the
ICAI. Those Standards and the Guidance Note require company are being made only in accordance with
that we comply with ethical requirements and plan authorisations of management and directors of the
and perform the audit to obtain reasonable assurance company; and (3) provide reasonable assurance
about whether adequate internal financial controls with regarding prevention or timely detection of unauthorised
reference to financial statements was established and acquisition, use, or disposition of the company’s
maintained and if such controls operated effectively in all assets that could have a material effect on the financial
material respects. statements.

Inherent Limitations of Internal Financial Controls with reference to financial statements and such internal
reference to financial statements financial controls with reference to financial statements
7. Because of the inherent limitations of internal financial were operating effectively as at March 31, 2023, based
controls with reference to financial statements, including the on the internal control over financial reporting criteria
possibility of collusion or improper management override
established by the Company considering the essential
of controls, material misstatements due to error or fraud
components of internal control stated in the Guidance
may occur and not be detected. Also, projections of any
evaluation of the internal financial controls with reference to Note issued by ICAI.
financial statements to future periods are subject to the risk
that the internal financial controls with reference to financial For Price Waterhouse & Co Chartered Accountants LLP
statements may become inadequate because of changes
Firm Registration Number: 304026E/E-300009
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Sougata Mukherjee
Opinion Partner
8. In our opinion, the Company has, in all material respects, Place: Gurugram Membership Number: 057084
an adequate internal financial controls system with Date: May 03, 2023 UDIN: 23057084BGYFRB3443

Standalone
Annexure B to Independent Auditor’s Report
Referred to in paragraph 13 of the Independent Auditors’ Report of even date to the

members of Havells India Limited on the standalone financial statements as of and for the
year ended March 31, 2023
i. (a) (A) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of
Property, Plant and Equipment.
(B) The Company is maintaining proper records showing full particulars of Intangible Assets.
(b) The Property, Plant and Equipment of the Company have been physically verified by the Management during the year and no
material discrepancies have been noticed on such verification. In our opinion, the frequency of verification is reasonable.
(c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee), as disclosed in Note 3 to the standalone financial statements, are held
in the name of the Company, except for the following:
Description of Gross carrying Held in the Whether promoter, Period held Reason for not being
property value name of director or their held in the name of
(` crores) relative or employee the Company
Freehold Land 15.89 Late Shri Qimat Rai Erstwhile Promoter/ From March Refer Note 3 (viii) to the
in Delhi Gupta, on behalf of M/s Director 31, 2011 standalone financial
Guptajee & Company statements.
Building in 0.04 Mrs. Shakrereh No From April 01,
Bengaluru Shraddhanand 2012
Further, the Company has taken the following immovable properties on lease, but the lease agreement has not been duly executed
in favour of the Company:
Description of Gross carrying Held in the Whether promoter, Period held Reason for lease
property value (right-of-use name of director or their agreement not executed
asset) (` crores) relative or employee with the Company
Building in 43.20 QRG Enterprises Promoter till October From August 01, Refer Note 3(ix) to the
Sahibabad Limited 12, 2022 2007 standalone financial
Building in Noida 96.79 QRG Enterprises Promoter till October From July 01, statements.
Limited 12, 2022 2008
(d) The Company has chosen cost model for its Property, Plant and Equipment (including Right-of-Use assets) and intangible
assets. Consequently, the question of our commenting on whether the revaluation is based on the valuation by a Registered
Valuer, or specifying the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each
class of Property, Plant and Equipment (including Right-of-Use assets) or intangible assets does not arise.
(e) Based on the information and explanations furnished to us, no proceedings have been initiated or are pending against the
Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in
2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder, and therefore the
question of our commenting on whether the Company has appropriately disclosed the details in its financial statements does
not arise.
ii. (a) The physical verification of inventory, excluding stocks with third parties, has been conducted at reasonable intervals by the
Management during the year and, in our opinion, the coverage and procedure of such verification by Management is appropriate.
In respect of inventory lying with third parties, these have substantially been confirmed by them.The discrepancies noticed on
physical verification of inventory as compared to book records were not 10% or more in aggregate for each class of inventory.

(b) During the year, the Company has not been sanctioned working capital limits in excess of ` 5 crores, in aggregate
from banks and financial institutions on the basis of security of current assets and accordingly, the question of our
commenting on whether the quarterly returns or statements are in agreement with the unaudited books of account of
the Company does not arise.
iii. (a) The Company has made investments in one company during the year. The Company has not granted secured/
unsecured loans/advances in nature of loans, or stood guarantee, or provided security to any parties. Therefore, the
reporting under clause 3(iii), (iii)(a), (iii)(c), (iii)(d), (iii)(e) and (iii)(f) of the Order are not applicable to the Company.
(b) In respect of the investments, the terms and conditions under which such investments were made are not prejudicial to
the Company’s interest.
iv. The Company has not granted any loans, or provided any guarantees or security to the parties covered under Section 185 of
the Act. Further, in our opinion, and according to the information and explanations given to us, the Company has complied
with the provisions of Sections 186 of the Companies Act, 2013 in respect of the investments made by it and the Company
has not provided any loans, guarantees or security to the parties covered under Section 186 of the Act.
v. The Company has not accepted any deposits or amounts which are deemed to be deposits within the meaning of Sections
73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified
under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same and are of the opinion that,
prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our
opinion, the Company is regular in depositing the undisputed statutory dues, including goods and services tax, provident
fund, employees’ state insurance, income tax, duty of customs, cess, and other material statutory dues, as applicable,
with the appropriate authorities.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are
no statutory dues of provident fund, employees’ state insurance and cess, which have not been deposited on account
of any dispute. The particulars of other statutory dues referred to in sub-clause (a) as at March 31, 2023 which have not
been deposited on account of a dispute, are as follows:
Name of the Nature of Amount of demand without Amount Period to which Forum where dispute
statute dues netting-off amount paid paid under the amount relates is pending
under protest (` crores) protest (Financial Year)
(` crores)
Income Tax Income tax 1.59 0.21 2008-09, 2011-12 High Court, Delhi
Act, 1961 and 2013-14
Income Tax Income tax 19.34 8.23 2010-11, 2014-15 Income Tax Appellate
Act, 1961 and 2016-17 Tribunal, New Delhi
Income Tax Income tax 16.62 2.29 2009-10, 2017-18 Commissioner of
Act, 1961 and 2019-20 Income Tax (Appeals),
New Delhi
Income Tax Income tax 0.01 0.01 2018-19 Assessing Officer, New
Act, 1961 Delhi
Central Excise Excise duty 0.23 - 2007-08 to CESTAT, (Chandigarh)
Act, 1944 2009-10
Central Excise Excise duty 15.96 0.60 2015-16 to CESTAT, (Karnataka)
Act, 1944 2017-18
The Customs Customs 0.04 - 2019-20 Commissioner of Customs
Act, 1962 duty (Appeals), New Delhi

Standalone
Name of the statute Nature of Amount of demand without Amount paid Period to which Forum where dispute
dues netting-off amount paid under protest the amount relates is pending
under protest (` crores) (` crores) (Financial Year)
The Customs Act, 1962 Customs duty 0.09 - 2017-18 Commissioner of
Customs (Appeals),
New Delhi
Bihar Value Added Tax Sales tax 0.62 0.41 2016-17 Commissioner (Appeals)
Act, 2005 Patna
Haryana Value Added Tax Sales tax 0.25 0.15 2003-04, 2005-06 High Court (Punjab and
Act, 2003 to 2006-07 Haryana)
Kerala Value Added Tax Sales tax 0.33 0.28 2005-06 Appellate Tribunal,
Act, 2003 Commercial Tax,
Ernakulam, (Kerala)
Tamil Nadu Value Added Sales tax 0.05 0.03 2007-08 Appellate Tribunal,
Tax Act, 2006 Commercial Tax, (Tamil
Nadu)
Orissa Entry Tax Entry tax 0.77 0.30 2008-09 to High Court, Orissa
Act, 1999 2011-12
Haryana Local Area Local Area 0.12 - 2001-02 Joint Commissioner
Development Tax Development (Appeals), Faridabad
Act, 2000 Tax
Octroi Tax Act, Octroi 0.03 0.03 2010-11 Nagpur Municipal
Maharashtra Corporation
Goods and Services Tax Goods and 0.46 0.46 2017-18 High Court, Uttar
Act, 2017 services tax Pradesh
Goods and Services Tax Goods and 0.11 - 2019-20 Additional

Act, 2017 services tax Commissioner (A),
Dehradun (Uttarakhand)
Goods and Services Tax Goods and 0.58 0.06 2017-18 Commissioner of GST
Act, 2017 services tax Appeals-Ghaziabad
Goods and Services Tax Goods and 0.08 - 2017-18 Deputy Commissioner,
Act, 2017 services tax Kerala
The above amounts contain interest and penalty where (b) According to the information and explanations given
included in the order issued by the taxation authority to the to us and on the basis of our audit procedures, we
Company. report that the Company has not been declared
Wilful Defaulter by any bank or financial institution or
viii. According to the information and explanations given to us government or any government authority.
and the records of the Company examined by us, there are
(c) According to the records of the Company examined by
no transactions that has been surrendered or disclosed
us and the information and explanations given to us, the
as income during the year in the tax assessments under
Company has not taken any term loan during the year.
the Income Tax Act, 1961, that has not been recorded in
the books of account. (d) According to the information and explanations given to us,
and the procedures performed by us, and on an overall
ix. (a) According to the records of the Company examined examination of the financial statements of the Company,
by us and the information and explanation given to we report that no funds raised on short-term basis have
us, the Company has not defaulted in repayment been used for long-term purposes by the Company.
of loans or other borrowings or in the payment of (e) According to the information and explanations given to us
interest to any lender during the year. and on an overall examination of the financial statements

of the Company, we report that the Company has not transactions have been disclosed in the standalone
taken any funds from any entity or person on account of financial statements as required under Indian Accounting
or to meet the obligations of its subsidiaries. Standard 24 “Related Party Disclosures” specified under
Section 133 of the Act.
(f) According to the information and explanations given to
us and procedures performed by us, we report that the xiv. (a) In our opinion and according to the information
Company has not raised loans during the year on the and explanation given to us, the Company has an
pledge of securities held in its subsidiaries. internal audit system commensurate with the size
and nature of its business.
x. (a) The Company has not raised any money by way
of initial public offer or further public offer (including (b) The reports of the Internal Auditor for the period
debt instruments) during the year. Accordingly, the under audit have been considered by us.
reporting under clause 3(x)(a) of the Order is not
applicable to the Company. xv. The Company has not entered into any non-cash
transactions with its directors or persons connected with
(b) The Company has not made any preferential him. Accordingly, the reporting on compliance with the
allotment or private placement of shares or fully or provisions of Section 192 of the Act under clause 3(xv) of
partially or optionally convertible debentures during the Order is not applicable to the Company.
the year. Accordingly, the reporting under clause 3(x)
(b) of the Order is not applicable to the Company. xvi. (a) The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act,
xi. (a) During the course of our examination of the 1934. Accordingly, the reporting under clause 3(xvi)
books and records of the Company, carried out in (a) of the Order is not applicable to the Company.
accordance with the generally accepted auditing
practices in India, and according to the information (b) The Company has not conducted non-banking
and explanations given to us, we have neither financial / housing finance activities during the year.
come across any instance of material fraud by the Accordingly, the reporting under clause 3(xvi)(b) of
Company or on the Company, noticed or reported the Order is not applicable to the Company.
during the year, nor have we been informed of any
such case by the Management. (c) The Company is not a Core Investment Company
(CIC) as defined in the regulations made by the
(b) During the course of our examination of the books and Reserve Bank of India. Accordingly, the reporting
records of the Company, carried out in accordance under clause 3(xvi)(c) of the Order is not applicable
with the generally accepted auditing practices in India, to the Company.
and according to the information and explanations
given to us, a report under Section 143(12) of the (d) Based on the information and explanations provided
Act, in Form ADT-4, as prescribed under rule 13 of by the management of the Company, the Group does
Companies (Audit and Auditors) Rules, 2014 was not have any CICs, which are part of the Group. We
not required to be filed with the Central Government. have not, however, separately evaluated whether
Accordingly, the reporting under clause 3(xi)(b) of the the information provided by the management is
Order is not applicable to the Company. accurate and complete. Accordingly, the reporting
under clause 3(xvi)(d) of the Order is not applicable
(c) During the course of our examination of the to the Company.
books and records of the Company carried out in
accordance with the generally accepted auditing xvii. The Company has not incurred any cash losses in the
practices in India, and according to the information financial year or in the immediately preceding financial
and explanations given to us, the Company has year.
received whistle-blower complaints during the year,
which have been considered by us for any bearing xviii. There has been no resignation of the statutory auditors
on our audit and reporting under this clause. during the year and accordingly the reporting under
clause (xviii) is not applicable.
xii. As the Company is not a Nidhi Company and the Nidhi
Rules, 2014 are not applicable to it, the reporting under xix. According to the information and explanations given to
clause 3(xii) of the Order is not applicable to the Company. us and on the basis of the financial ratios (Also refer Note
32(17)) to the standalone financial statements, ageing
xiii. The Company has entered into transactions with related and expected dates of realisation of financial assets
parties in compliance with the provisions of Sections and payment of financial liabilities, other information
177 and 188 of the Act. The details of such related party accompanying the financial statements, our knowledge

Standalone
of the Board of Directors and management plans and (b) The Company had transferred the amount of
based on our examination of the evidence supporting the Corporate Social Responsibility remaining unspent
assumptions, nothing has come to our attention, which under sub-section (5) of Section 135 of the Act
causes us to believe that any material uncertainty exists pursuant to ongoing projects, to a special account
as on the date of the audit report that Company is not in compliance with the provision of sub-section (6) of
capable of meeting its liabilities existing at the date of Section 135 of the Act. Also refer Note 32(8) to the
balance sheet as and when they fall due within a period of financial statements.
one year from the balance sheet date. We, however, state
that this is not an assurance as to the future viability of the xxi. The reporting under clause 3(xxi) of the Order is not
Company. We further state that our reporting is based on applicable in respect of audit of Standalone Financial
the facts up to the date of the audit report and we neither Statements. Accordingly, no comment in respect of the
give any guarantee nor any assurance that all liabilities said clause has been included in this report.
falling due within a period of one year from the balance
sheet date will get discharged by the Company as and For Price Waterhouse & C0 Chartered Accountants LLP
when they fall due. Firm Registration Number: 304026E/ E-300009
xx. (a) In respect of other than ongoing projects, as at Sougata Mukherjee

balance sheet date, the Company does not have any Partner
amount remaining unspent under Section 135(5) of Place: Gurugram Membership Number: 057084
the Act. Accordingly, reporting under clause 3(xx)(a) Date: May 3, 2023 UDIN: 23057084BGYFRB3443
of the Order is not applicable. Also refer Note 32(8)
to the financial statements

HAVELLS INDIA LIMITED
(CIN: L31900DL1983PLC016304)
Balance Sheet
as at March 31, 2023
(` in crores)
Notes As At As At
March 31, 2023 March 31, 2022
ASSETS
1 Non-current assets
Property, plant and equipment 3 2,227.77 2,021.34
Capital work in progress 3 163.42 56.75
Goodwill 4 310.47 310.47
Other intangible assets 4 1,082.33 1,101.69
Intangible assets under development 4 2.99 0.46
Investment in subsidiaries 5 0.45 1.63
Financial assets 7
(i) Investments 7(A) 20.00 272.68
(ii) Trade receivables 7(B) 1.59 2.67
(iii) Other financial assets 7(C) 148.86 41.94
Contract assets 6(B) 25.57 38.83
Other non-current assets 8 78.94 42.93
Non Current tax assets (net) 9 29.03 26.54
Total non current assets 4,091.42 3,917.93
2 Current assets
Inventories 10 3,708.47 2,968.08
Financial assets 11
(i) Investments 11(A) 180.87 153.42
(iii) Cash and cash equivalents 11(C) 456.86 763.70
(iv) Bank balances other than (iii) above 11(D) 1,405.01 1,772.14
(v) Other financial assets 11(E) 116.89 29.89
Other current assets 12 175.15 107.89
Total current assets 7,041.25 6,586.50
Assets classified as held for sale 13 10.53 0.73
7,051.78 6,587.23
Total assets 11,143.20 10,505.16
EQUITY AND LIABILITIES
1 Equity 14
Equity share capital 14(A) 62.65 62.63
Other equity 14(B) 6,551.83 5,926.01
Total equity 6,614.48 5,988.64
2 Liabilities
Non-current liabilities
Financial liabilities 15
(i) Borrowings 15(A) - 272.57
(ii) Lease liabilities 15(B) 186.91 178.82
(iii) Other financial liabilities 15(C) 7.21 3.96
Contract liabilities 6(C) 4.10 4.99
Provisions 16 136.72 76.25
Deferred tax liabilities (Net) 17 361.51 350.62
Total non current liabilities 696.45 887.21
Current liabilities
(iii) Trade payables 18(C)
a) Total outstanding dues of micro enterprises and small enterprises; and 154.96 114.08
b) Total outstanding dues of creditors other than micro enterprises and small enterprises 2,487.58 2,265.33
(iv) Other financial liabilities 18(D) 624.85 525.46
Other current liabilities 21 138.99 189.05
Provisions 19 274.91 253.23
Current tax liabilities (net) 20 32.26 62.85
Total current liabilities 3,832.27 3,629.31
Total liabilities 4,528.72 4,516.52
Total equity and liabilities 11,143.20 10,505.16
Summary of significant accounting policies 2
Commitments and contingencies 31
Other notes on accounts 32
The above standalone balance sheet should be read in conjunction with the accompanying notes.
As per our report of even date For and on behalf of Board of Directors
For Price Waterhouse & Co Chartered Anil Rai Gupta Rajesh Kumar Gupta
Accountants LLP Chairman and Director (Finance)
Firm Registration No. 304026E/E-300009 Managing Director and Group CFO
DIN: 00011892 DIN: 00002842
Sougata Mukherjee Ameet Kumar Gupta Sanjay Kumar Gupta Pankaj Jain
Partner Director Company Secretary Head–Finance and Accounts
Membership No. 057084 DIN: 00002838 FCS No.: F 3348
Date: May 03, 2023 Date: May 03, 2023
Place: Gurugram Place: Noida

Standalone
HAVELLS INDIA LIMITED

(CIN: L31900DL1983PLC016304)
Statement of Profit and Loss

for the year ended March 31, 2023
(` in crores)
Notes Year ended Year ended
March 31, 2023 March 31, 2022
I INCOME
Revenue from operations 22 16,868.38 13,888.53
Other income 23 177.02 160.42
Total Income 17,045.40 14,048.95
II EXPENSES
Cost of raw materials and components consumed 24 9,317.92 7,772.06
Purchase of traded goods 25 2,994.58 1,831.48
Changes in inventories of finished goods, traded goods and work in progress 26 (641.20) (219.48)
Employee benefits expense 27 1,261.66 1,014.65
Finance costs 28 33.62 53.41
Depreciation and amortization expenses 29 296.11 260.83
Other expenses 30 2,316.55 1,729.82
Net impairment losses on financial and contract assets 30A 15.91 2.39
Total expenses 15,595.15 12,445.16
III Profit before exceptional items and tax 1,450.25 1,603.79
IV Exceptional Items
Loss due to fire 32(15) 112.52 -
Insurance claim receivable 32(15) (112.52) -
Profit before tax 1,450.25 1,603.79
V Income tax expense 17
Current tax 364.41 397.55
Deferred tax {refer note 17(d)} 10.89 11.51
Total tax expense 375.30 409.06
VI Profit for the year 1,074.95 1,194.73
VII Other comprehensive income
Items that will not be reclassified to profit or loss
i) Re-measurement gain / (loss) on defined benefit plans {refer note 32(4)} (10.25) 7.38
ii) Income tax effect on above {refer note no 17(b)} 2.58 (1.86)
Other comprehensive income/(loss) for the year, net of tax (7.67) 5.52
VIII Total comprehensive income for the year 1,067.28 1,200.25
IX Earnings per equity share (EPS) {refer note no. 32 (12)}
(nominal value of share Re.1/-)
Basic EPS (`) 17.16 19.08
Diluted EPS (`) 17.16 19.08
The above standalone statement of profit and loss should be read in conjunction with the accompanying notes.
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Statement of Changes in Equity
A) Equity Share Capital

(` in crores)
Particulars Notes Numbers Amount
As at April 1, 2021 14(A) 62,60,13,006 62.60
Add: Exercise of employee stock purchase plan - proceeds received 2,90,061 0.03
As at March 31, 2022 62,63,03,067 62.63
Add: Exercise of employee stock purchase plan - proceeds received 2,06,671 0.02
As at March 31, 2023 62,65,09,738 62.65
B) Other Equity
(` in crores)
Particulars Reserves and surplus
Notes Capital Securities General Share options Retained Total
reserve premium reserve outstanding earnings
account
As at April 1, 2021 7.63 90.38 722.72 0.64 4,280.48 5,101.85
Profit for the year {14(b)e} - - - - 1,194.73 1,194.73
Other comprehensive income for the year
Re-measurement gains / (losses) on defined - - - - 5.52 5.52
benefit plans net of tax
Total comprehensive income for the year - - - - 1,200.25 1,200.25
Transactions with owners in their capacity
as owners:
Final and interim dividend paid during the year {14(b)e} - - - - (407.10) (407.10)
Equity shares issued under employee stock 14(b)(b)/ - 31.12 - - - 31.12
purchase plan 14(b)(c)
Options recognised during the year {14(b)c} - - - 1.15 - 1.15
Options vested and exercised during the year {14(b)c} - - - (1.26) - (1.26)
As at March 31, 2022 7.63 121.50 722.72 0.53 5,073.63 5,926.01
Profit for the year {14(b)e} - - - - 1,074.95 1,074.95

Other comprehensive income for the year
Re-measurement gains / (losses) on defined - - - - (7.67) (7.67)
Total Comprehensive income for the year - - - - 1,067.28 1,067.28
Transaction with owners in their capacity
as owners:
Final and interim dividend paid during the year {14(b)e} - - - - (469.88) (469.88)
Equity shares issued under employee stock 14(b)(b)/ - 26.65 - 3.23 - 29.88
purchase plan 14(b)(c)
Options vested and exercised during the year {14(b)c} - - - (1.46) - (1.46)
As at March 31, 2023 7.63 148.15 722.72 2.30 5,671.03 6,551.83
The above standalone statement of changes in equity should be read in conjunction with the accompanying notes.
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Standalone
Statement of Cash Flows

(` in crores)
Year ended Year ended
March 31, 2023 March 31, 2022
A. CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for
Depreciation and amortisation expense 296.11 260.83
Loss /(gain) on disposal of property, plant and equipment (net) 0.14 1.43
Unrealized foreign exchange loss /(gain) (net) (6.25) (5.55)
Net impairment losses on financial and contract assets 15.91 2.39
Impairment/ (reversal of impairment) on investment in subsidiary (2.85) -
Credit impaired trade receivables written off 2.52 10.39
Discounting of long term warranty provision (12.11) (5.79)
Lease rent concession (0.12) (0.49)
Interest income on bank deposits and investment (123.23) (103.76)
Finance cost 33.44 53.24
Liabilities no longer required written back (0.23) (0.15)
Operating Profit before working capital changes 1,653.58 1,816.33
Change in operating assets and liabilities
(Increase)/ Decrease in trade receivables (223.47) (215.29)
(Increase)/ Decrease in contract assets 13.14 4.52
(Increase)/ Decrease in other financial assets (86.34) 14.80
(Increase)/ Decrease in non current assets 4.47 4.10
(Increase)/ Decrease in other current assets (67.26) 1.34
(Increase)/ Decrease in inventories (740.39) (348.19)
Increase/ (Decrease) in trade payables 272.72 787.52
Increase/ (Decrease) in financial liabilities 74.73 (40.49)
Increase/ (Decrease) in other current liabilities (50.06) 105.73
Increase/ (Decrease) in contract liabilities 27.34 7.57
Increase/ (Decrease) in provisions 78.22 20.43
Cash generated from operations 956.68 2,158.37
Income tax paid (net of refunds) (391.94) (413.80)
Net cash inflow from operating Activities (A) 564.74 1,744.57
B. CASH FLOWS FROM INVESTING ACTIVITIES

Payment for property, plant and equipment and intangible assets (587.77) (258.28)
Receipt of grant related to assets - 3.72
Proceeds from liquidation of subsidiary 4.03 -
Proceeds from sale of property, plant and equipment 2.27 5.56
Investment in fixed deposits with bank and financial institution 520.43 (605.13)
Payment for investments (20.00) -
Interest on fixed deposit and investment received 120.12 94.92
Net Cash inflow /(outflow) used in Investing Activities (B) 39.08 (759.21)

Statement of Cash Flows
(` in crores)
March 31, 2023 March 31, 2022
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 - securities 26.65 31.12
premium received
Payment of principal portion of lease liabilities (44.28) (34.54)
Payment of interest portion of lease liabilities (18.35) (14.89)
Proceeds from long term borrowing - 0.04
Repayment of long term borrowings (393.69) (97.35)
Interest paid (6.98) (24.46)
Dividends paid to Company's shareholders (470.30) (407.29)
Net cash inflow /(outflow) from Financing Activities (C) (906.93) (547.34)
Net increase / (decrease) in cash and cash equivalents (A+B+C) (303.11) 438.02
Cash and cash equivalents at the beginning of the year 763.70 326.57
Effect of foreign exchange rate changes on cash and cash equivalents held in (3.73) (0.89)
foreign currency
Cash and cash equivalents at the end of the year 456.86 763.70
Notes :
1 The above statement of cash flows 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, 2023 March 31, 2022
Cash and cash equivalents
Balances with banks:
Current accounts 63.24 24.72
Cash credit accounts 29.92 114.02
Deposits with a original maturity of less than three months 363.57 624.72
Cash on hand 0.13 0.24
456.86 763.70
The above standalone statement of cash flows should be read in conjunction with the accompanying notes.
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Standalone
Notes to Financial Statements

1. CORPORATE INFORMATION notified under the Companies (Indian Accounting

Havells India Limited (‘the Company’) is a public limited Standards) Rules, 2015 (as amended from time
Company domiciled in India and incorporated on August to time) and presentation requirements of Division
08, 1983 under the provisions of the Companies Act, II of Schedule III to the Companies Act, 2013, (Ind
1956 having its registered office at 904, 9th Floor, Surya AS compliant Schedule III). These standalone
Kiran Building, K.G. Marg, Connaught Place, New financial statements are presented in INR and
Delhi-110001. The Company is listed on BSE Limited and all values are rounded to the nearest crore (INR
National Stock Exchange of India Limited. The CIN of the 0,000,000), except when otherwise indicated.
Company is L31900DL1983PLC016304
The financial statements have been prepared
The Company is consumer electrical/electronics and on a historical cost convention, except for the
power distribution equipment manufacturer with products following assets and liabilities:
ranging from Industrial and Domestic Circuit Protection
Switchgears, Cables, Motors, Pumps, Solar Products, i) Certain financial assets and liabilities that is
Fans, Power Capacitors, LED Lamps and Luminaries measured at fair value
for Domestic, Commercial and Industrial applications,
ii) Assets held for sale-measured at fair value
Modular Switches, Water Heaters, Coolers and Domestic
less cost to sell
Appliances, Personal Grooming, Air Purifier, Water
Purifier, Air conditioner, Television, Washing machine
iii) Defined benefit plans-plan assets
and Refrigerator covering the entire range of household,
measured at fair value
commercial and industrial electrical needs.
iv) Share based payments

The Company’s manufacturing facilities are located at
Faridabad in Haryana, Alwar, Ghiloth and Neemrana in
2.02 Current versus non-current classification
Rajasthan, Haridwar in Uttarakhand, Sahibabad in Uttar
Pradesh, Baddi in Himachal Pradesh, Sri City in Andhra The Company presents assets and liabilities in
Pradesh. The research and development facilities are the balance sheet based on current/non- current
located at Noida (Uttar Pradesh), Bangalore and Ghiloth classification. An asset is treated as current when
(Rajasthan) it is:
These standalone financial statements were approved for - Expected to be realized or intended to be sold
issue in accordance with a resolution of the directors on or consumed in normal operating cycle
May 3, 2023
- Held primarily for purpose of trading
2. Summary of significant accounting policies
- Expected to be realized within twelve months
This note provides a list of the significant accounting
after the reporting period, or
policies adopted in the preparation of these Indian
Accounting Standards (Ind-AS) Standalone financial
- cash or cash equivalent unless restricted from
statements. These policies have been consistently applied
being exchanged or used to settle a liability for
to all the years except where newly issued accounting
at least twelve months after the reporting period
standard is initially adopted.
All other assets are classified as non-current.
These standalone financial statement are separate
financial statements including Havells Employees Welfare A liability is current when:
Trust prepared in accordance with Ind AS-27 “ Separate
Financial Statements”. - It is expected to be settled in normal operating
cycle
2.01 Basis of preparation of Standalone
Financial Statements - It is held primarily for purpose of trading
These standalone financial statements of the
Company have been prepared in accordance - It is due to be settled within twelve months after
with Indian Accounting Standards (Ind AS) the reporting period, or

- There is no unconditional right to defer the An item of property, plant and equipment and any
settlement of the liability for at least twelve significant part initially recognised is derecognized
months after the reporting period upon disposal or when no future economic
benefits are expected from its use or disposal.
All other liabilities are classified as non current. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the
Deferred tax assets and deferred tax liabilities are net disposal proceeds and the carrying amount
classified as non- current assets and liabilities. of the asset) is included in the income statement
when the asset is derecognised.
The operating cycle is the time between the
acquisition of assets for processing and their Capital work- in- progress includes cost of
realization in cash and cash equivalents. the property, plant and equipment under installation /
Company has identified twelve months as its under development as at the balance sheet date.
operating cycle.
The residual values, useful lives and methods of
2.03 Property, plant and equipment depreciation of property, plant and equipment are
Freehold Land is carried at historical cost. All reviewed at each financial year end and adjusted
other items of Property, Plant and equipment are prospectively, if appropriate.
stated at cost, less accumulated depreciation
and accumulated impairment losses, if any. Depreciation on property, plant and equipment
Capital work in progress is stated at cost, net is calculated on prorata basis on straight-line
of accumulated impairment loss, if any. The method using the useful lives of the assets
historical cost comprises of purchase price, taxes, estimated by management. The useful life is as
duties, freight and other incidental expenses follows:
directly attributable and related to acquisition
Assets Useful life (in years)
and installation of the concerned assets and are
Building 30 and 60
further adjusted by the amount of input tax credit
Plant and Equipment 15
availed wherever applicable.
Moulds and Dies 6
Such cost includes the cost of replacing part of Furniture and Fixtures 10
the plant and equipment and borrowing costs for Vehicles 8 and 10
long-term construction projects if the recognition R &D Equipment 5 and15
criteria are met. When significant parts of plant Office Equipment 3 and 5
and equipment are required to be replaced Mobile Phones 3
at intervals, the Company depreciates them Electric Fans and 10
separately based on their specific useful lives. Installations
Likewise, when a major inspection is performed, Computers 3
its cost is recognised in the carrying amount of Laptops 4
the plant and equipment as a replacement if the
recognition criteria are satisfied. All other repair The useful lives of all the assets except moulds
and maintenance costs are recognised in profit and dies, mobile phones and laptops have
or loss as incurred. The present value of the been determined as those specified by part ‘C’
expected cost for the decommissioning of an of Schedule II to the Companies Act, 2013. In
asset after its use is included in the cost of the respect of moulds and dies and mobile phones,
respective asset if the recognition criteria for a useful lives are lower than those specified by
provision are met. schedule II to the Companies Act 2013 and
are depreciated over the estimated useful lives
Subsequent costs are included in asset’s carrying of 6 years, 3 years respectively, in respect of
amount or recognised as separate assets, as laptop useful life is more than those specified
appropriate, only when it is probable that future by schedule II to the Company Act 2013 and
economic benefit associated with the item will are depreciated over the estimated useful life of
flow to the Company and the cost of item can be 4 years, in order to reflect the actual usage of
measured reliably. assets. The residual values are not more than

Standalone

5% of the original cost of the assets. The asset’s level. The assessment of indefinite life is reviewed
residual values and useful lives are reviewed, and annually to determine whether the indefinite life
adjusted if appropriate. continues to be supportable. If not, the change
in useful life from indefinite to finite is made on a
Lease hold improvements are depreciated on prospective basis. The Company has assessed
straight line basis over shorter of the asset’s indefinite life for such brand considering the
useful life and their lease term unless the entity expected usage, expected investment on brand,
expects to use the asset beyond the lease term. business forecast and challenges to establish a
premium electronic segment. These are carried at
Leasehold land is amortized on a straight line historical cost and tested for impairment annually.
basis over the unexpired period of their respective
lease ranging from 90-99 years. An intangible asset is derecognised upon
disposal or when no future economic benefits are
2.04 Intangible assets expected from its use or disposal. Gains or losses
Separately acquired intangible assets arising from disposal of the intangible assets are
measured as the difference between the net
Intangible assets acquired separately are
disposal proceeds and the carrying amount of
measured on initial recognition at cost. Cost
the asset and are recognized in the statement of
of intangible assets acquired in business
profit and loss when the assets are disposed off.
combination is their fair value at the date of
acquisition. Following initial recognition, intangible
Intangible assets with finite useful life are
assets are carried at cost less accumulated
amortized on a straight line basis over their
amortization and accumulated impairment
estimated useful life as under
losses, if any. Internally generated intangibles,
excluding capitalized development cost, are Assets Useful life (in years)
not capitalized and the related expenditure is Computer Software 6
reflected in statement of Profit and Loss in the R&D Software 6
period in which the expenditure is incurred. Cost Distributor/ Dealer 8
comprises the purchase price and any attributable Network
cost of bringing the asset to its working condition Non-Compete Fee 7
for its intended use. Brand and Trademarks Indefinite
The useful lives of intangible assets are assessed Research and development cost
as either finite or indefinite. Intangible assets with Research costs are expensed as incurred.
finite lives are amortized over their useful lives Development expenditure incurred on an
and assessed for impairment whenever there individual project is recognized as an intangible
is an indication that the intangible asset may asset when the Company can demonstrate all
be impaired. The amortization period and the the following:
amortization method for an intangible asset with
a finite useful life is reviewed at least at the end of i) The technical feasibility of completing the
each reporting period. Changes in the expected intangible asset so that it will be available
useful life or the expected pattern of consumption for use or sale;
of future economic benefits embodied in the asset
is accounted for by changing the amortization ii) Its intention to complete the asset;
period or method, as appropriate, and are
treated as changes in accounting estimates. The iii) Its ability to use or sale the asset;
amortization expense on intangible assets with
finite lives is recognized in the statement of profit iv) How the asset will generate future
and loss. economic benefits;
Intangible assets with indefinite useful lives are not v) The availability of adequate resources to
amortized, but are tested for impairment annually, complete the development and to use or
either individually or at the cash-generating unit sale the asset; and

vi) The ability to measure reliably the Company re-assesses whether it has correctly
expenditure attributable to the intangible identified all of the assets acquired and all of the
asset during development. liabilities assumed and reviews the procedures
used to measure the amounts to be recognised
Following the initial recognition of the
at the acquisition date. If the reassessment
development expenditure as an asset, the
still results in an excess of the fair value of net
cost model is applied requiring the asset
assets acquired over the aggregate consideration
to be carried at cost less any accumulated
transferred, then the gain is recognised in other
comprehensive income and accumulated in
losses. Amortization of the asset begins
equity as capital reserve. However, if there is no
when development is complete and the
clear evidence of bargain purchase, the entity
asset is available for use. It is amortized
recognizes the gain directly in equity as capital
on straight line basis over the estimated
reserve, without routing the same through other
useful life and is recognised in the
comprehensive income.
statement of profit and loss. During the
period of development, the asset is tested After initial recognition, goodwill is measured at
for impairment annually. cost less any accumulated impairment losses,
if any. For the purpose of impairment testing,
Trademarks
goodwill acquired in a business combination
Brand and Trademarks acquired in business
is, from the acquisition date, allocated to each
combination are initially recognised at fair
of the Company’s cash-generating units that
value at the date of acquisition. Following initial
are expected to benefit from the combination,
recognition, brand and trademark are carried at
irrespective of whether other assets or liabilities
the above recognised value less accumulated
of the acquire are assigned to those units.
losses, if any. These Brand and trademarks have A cash generating unit to which goodwill has
been in existence for considerable period and been allocated is tested for impairment annually
Company intends to continue use this intangible or earlier, when there is an indication that the unit
assets. Consequently it is believed that they have may be impaired. If the recoverable amount of
an indefinite life and are not amortised. Instead the cash generating unit is less than its carrying
impairment testing is performed annually and amount, the impairment loss is allocated first
whenever a triggering event has occurred to to reduce the carrying amount of any goodwill
determine whether the carrying value exceeds allocated to the unit and then to the other assets
the recoverable amount. of the unit pro rata based on the carrying amount
of each asset in the unit. Any impairment loss
Distributor/ Dealer Network
for goodwill is recognised in profit or loss. An
Distributor/ Dealer Network acquired in impairment loss recognised for goodwill is not
business combination are initially recognised at reversed in subsequent periods.
fair value at the date of acquisition. Following
initial recognition, Distributor/ Dealer Network Where goodwill has been allocated to a cash-
are carried at the above recognised value less generating unit and part of the operation within that
accumulated amortization and accumulated unit is disposed of, the goodwill associated with
impairment losses, if any. They are amortised on the disposed operation is included in the carrying
a straight line basis over their estimated useful life amount of the operation when determining the
of 8 years assessed by the management. gain or loss on disposal. Goodwill disposed in
these circumstances is measured based on the
Goodwill relative values of the disposed operation and the
Goodwill is initially measured at cost, being the portion of the cash-generating unit retained.
excess of the aggregate of the consideration
transferred over the fair value of net identifiable 2.05 Impairment of non- financial assets
assets acquired and liabilities assumed. If the The Company assesses, at each reporting date,
fair value of the net assets acquired is in excess whether there is an indication that an asset may
of the aggregate consideration transferred, the be impaired. If any indication exists, or when

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annual impairment testing for an asset is required, properties, the impairment is recognised in OCI
the Company estimates the asset’s recoverable up to the amount of any previous revaluation
amount. An asset’s recoverable amount is the surplus.
higher of an asset’s or cash-generating unit’s
(CGU) fair value less costs of disposal and For assets excluding goodwill and intangible
its value in use. The recoverable amount is assets having indefinite life, an assessment
determined for an individual asset, unless the is made at each reporting date to determine
asset does not generate cash inflows that are whether there is an indication that previously
largely independent of those from other assets recognised impairment losses no longer exist
or groups of assets. When the carrying amount or have decreased. If such indication exists,
of an asset or CGU exceeds its recoverable the Company estimates the asset’s or CGU’s
amount, the asset is considered impaired and is recoverable amount. A previously recognised
written down to its recoverable amount. impairment loss is reversed only if there has been
a change in the assumptions used to determine
In assessing value in use, the estimated future the asset’s recoverable amount since the last
cash flows are discounted to their present value impairment loss was recognised. The reversal is
using a pre-tax discount rate that reflects current limited so that the carrying amount of the asset
market assessments of the time value of money does not exceed its recoverable amount, nor
and the risks specific to the asset. In determining exceed the carrying amount that would have
fair value less costs of disposal, recent market been determined, net of depreciation, had no
transactions are taken into account. If no such impairment loss been recognised for the asset
transactions can be identified, an appropriate in prior years. Such reversal is recognised in the
valuation model is used. These calculations are statement of profit and loss unless the asset is
corroborated by valuation multiples, quoted carried at a revalued amount, in which case, the
share prices for publicly traded companies or reversal is treated as a revaluation increase.
other available fair value indicators.
Goodwill is tested for impairment annually and
The Company bases its impairment calculation
when circumstances indicate that the carrying
on detailed budgets and forecast calculations,
value may be impaired. Impairment is determined
which are prepared separately for each of the
for goodwill by assessing the recoverable amount
Company’s CGUs to which the individual assets
of each CGU (or group of CGUs) to which the
are allocated. These budgets and forecast
goodwill relates. When the recoverable amount
calculations generally cover a period of five
of the CGU is less than its carrying amount, an
years. For longer periods, a long-term growth
impairment loss is recognised. Impairment losses
rate is calculated and applied to project future
relating to goodwill cannot be reversed in future
cash flows after the fifth year. To estimate cash
periods.
flow projections beyond periods covered by the
most recent budgets/forecasts, the Company
Intangible assets with indefinite useful lives
extrapolates cash flow projections in the budget
are tested for impairment annually as at March
using a steady or declining growth rate for
31 at the CGU level, as appropriate, and when
subsequent years, unless an increasing rate can
circumstances indicate that the carrying value
be justified. In any case, this growth rate does not
may be impaired.
exceed the long-term average growth rate for the
products, industries, or country or countries in
2.06 Financial instruments
which the Company operates, or for the market
in which the asset is used. A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
Impairment losses of continuing operations, liability or equity instrument of another entity.
including impairment on inventories, are
recognised in the statement of profit and loss, (i) Financial Assets
except for properties previously revalued with The Company classifies its financial assets
the revaluation surplus taken to OCI. For such in the following measurement categories:

- Those to be measured subsequently at fair Subsequent measurement

value (either through other comprehensive For purposes of subsequent measurement
income, or through profit or loss) financial assets are classified in following
categories:
- Those measured at amortized cost
- Financial assets at amortised cost (debt
The classification of financial assets at initial instruments)
recognition depends on the financial asset’s
contractual cash flow characteristics and the - Financial assets at fair value through other
Company’s business model for managing them comprehensive income (FVTOCI) with
recycling of cumulative gains and losses
Initial recognition measurement (debt instruments)
With the exception of trade receivables that do
not contain a significant financing component or - Financial assets designated at fair value
for which the Company has applied the practical through OCI with no recycling of cumulative
expedient, the Company initially measures a gains and losses upon derecognition
financial asset at its fair value plus, in the case of (equity instruments)
a financial asset not at fair value through profit or
loss, transaction costs. - Financial assets at fair value through profit
or loss
Trade receivables that do not contain a significant
financing component or for which the Company Financial assets at amortised cost (debt
has applied the practical expedient are measured instruments)
at the transaction price determined under Ind AS A ‘financial asset’ is measured at the amortised
115. Refer to the accounting policies in section cost if both the following conditions are met:
‘Revenue from contracts with customers’.
a) Business Model Test : The objective is
In order for a financial asset to be classified
to hold the financial asset to collect the
and measured at amortised cost or fair value
contractual cash flows (rather than to
through OCI, it needs to give rise to cash flows
sell the instrument prior to its contractual
that are ‘solely payments of principal and interest
maturity to realize its fair value changes)
(SPPI)’ on the principal amount outstanding. This
and;
assessment is referred to as the SPPI test and is
performed at an instrument level. Financial assets
b) Cash flow characteristics test: The
with cash flows that are not SPPI are classified
contractual terms of the financial asset
and measured at fair value through profit or loss,
give rise on specific dates to cash flows
irrespective of the business model.
that are solely payments of principal and
The Company’s business model for managing interest on principal amount outstanding.
financial assets refers to how it manages its
financial assets in order to generate cash flows. This category is most relevant to the Company.
The business model determines whether cash After initial measurement, such financial assets
flows will result from collecting contractual cash are subsequently measured at amortized cost
flows, selling the financial assets, or both. using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into
Financial assets classified and measured at account any discount or premium on acquisition
amortised cost are held within a business model and fees or costs that are an integral part of
with the objective to hold financial assets in order EIR. EIR is the rate that exactly discounts the
to collect contractual cash flows while financial estimated future cash receipts over the expected
assets classified and measured at fair value life of the financial instrument or a shorter period,
through OCI are held within a business model where appropriate, to the gross carrying amount
with the objective of both holding to collect of the financial asset. When calculating the
contractual cash flows and selling. effective interest rate, the Company estimates

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the expected cash flows by considering all the Financial assets designated at fair value through
contractual terms of the financial instrument but OCI (equity instruments)
does not consider the expected credit losses. The Upon initial recognition, the Company can elect
EIR amortization is included in other income in to classify irrevocably its equity investments
profit or loss. The losses arising from impairment as equity instruments designated at fair value
are recognized in the profit or loss. This category through OCI when they meet the definition of
generally applies to trade and other receivables. equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The
Financial assets at fair value through OCI (FVTOCI) classification is determined on an instrument-
(debt instruments) by-instrument basis. Equity instruments which
A ‘financial asset’ is classified as at the FVTOCI if are held for trading and contingent consideration
both of the following criteria are met: recognised by an acquirer in a business
combination to which Ind AS103 applies are
a) Business Model Test : The objective of classified as at FVTPL.
financial instrument is achieved by both
collecting contractual cash flows and Gains and losses on these financial assets are
selling the financial assets; and never recycled to profit or loss. Dividends are
recognised as other income in the statement of
b) Cash flow characteristics test: The profit and loss when the right of payment has
contractual terms of the Debt instrument been established, except when the Company
give rise on specific dates to cash flows benefits from such proceeds as a recovery of
that are solely payments of principal and part of the cost of the financial asset, in which
interest on principal amount outstanding. case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI
Debt instrument included within the FVTOCI are not subject to impairment assessment.
category are measured initially as well as at
each reporting date at fair value. Fair value Embedded Derivatives
movements are recognized in the other A derivative embedded in a hybrid contract,
comprehensive income (OCI), except for the with a financial liability or non-financial host,
recognition of interest income, impairment gains is separated from the host and accounted
or losses and foreign exchange gains or losses for as a separate derivative if: the economic
which are recognized in statement of profit and characteristics and risks are not closely related
loss and computed in the same manner as for to the host; a separate instrument with the same
financial assets measured at amortised cost. terms as the embedded derivative would meet the
The remaining fair value changes are recognised definition of a derivative; and the hybrid contract
in OCI. Upon derecognition, the cumulative fair is not measured at fair value through profit or
value changes recognised in OCI is reclassified loss. Embedded derivatives are measured at fair
from the equity to profit or loss. value with changes in fair value recognised in
profit or loss. Reassessment only occurs if there
Financial assets at fair value through profit or loss is either a change in the terms of the contract that
Financial assets at fair value through profit or significantly modifies the cash flows that would
loss are carried in the balance sheet at fair otherwise be required or a reclassification of a
value with net changes in fair value recognised financial asset out of the fair value through profit
in the statement of profit and loss. This or loss category.
category includes derivative instruments and
listed equity investments which the Group Derecognition
had not irrevocably elected to classify at fair A financial asset (or, where applicable, a part of
value through OCI. Dividends on listed equity a financial asset or part of a Company of similar
investments are recognised in the statement of financial assets) is primarily derecognised (i.e.
profit and loss when the right of payment has removed from the Company’s statement of
been established. financial position) when:

- The rights to receive cash flows from the - Financial assets measured at amortized
asset have expired, or cost;
- the Company has transferred its rights to - Financial assets measured at fair
receive cash flows from the asset or has value through other comprehensive
assumed an obligation to pay the received income(FVTOCI);
cash flows in full without material delay
to a third party under a “pass through” ECLs are based on the difference between the
arrangement and either; contractual cash flows due in accordance with
the contract and all the cash flows that the
(a) the Company has transferred substantially Group expects to receive, discounted at an
all the risks and rewards of the asset, or approximation of the original effective interest
rate. The expected cash flows will include cash
(b) the Company has neither transferred nor flows from the sale of collateral held or other
retained substantially all the risks and credit enhancements that are integral to the
rewards of the asset, but has transferred contractual terms.
control of the asset.
ECLs are recognised in two stages. For credit
When the Company has transferred its rights to exposures for which there has not been a
receive cash flows from an asset or has entered significant increase in credit risk since initial
into a pass-through arrangement, it evaluates recognition, ECLs are provided for credit losses
if and to what extent it has retained the risks that result from default events that are possible
and rewards of ownership. When it has neither within the next 12-months (a 12-month ECL). For
transferred nor retained substantially all of the those credit exposures for which there has been
risks and rewards of the asset, nor transferred a significant increase in credit risk since initial
control of the asset, the Company continues to recognition, a loss allowance is required for credit
recognise the transferred asset to the extent of losses expected over the remaining life of the
the Company’s continuing involvement. In that exposure, irrespective of the timing of the default
case, the Group also recognises an associated (a lifetime ECL).
liability. The transferred asset and the associated
liability are measured on a basis that reflects The Company follows “simplified approach” for
the rights and obligations that the Group has recognition of impairment loss allowance on:
retained.
- Trade receivables or contract revenue
Continuing involvement that takes the form of a receivables; Trade receivables which are
guarantee over the transferred asset is measured held to collect and sale basis accounted
at the lower of the original carrying amount of the for as FVTPL
asset and the maximum amount of consideration
that the group could be required to repay. - All lease receivables resulting from the
transactions within the scope of Ind AS
Investment in associates, joint venture and 116 -Leases
subsidiaries
the Company has accounted for its investment Under the simplified approach, the Company
in subsidiaries and associate and joint venture at does not track changes in credit risk. Rather, it
cost. recognizes impairment loss allowance based on
lifetime ECLs at each reporting date, right from its
Impairment of financial assets initial recognition. The Company uses a provision
In accordance with IND AS 109, the Company matrix to determine impairment loss allowance on
applies expected credit losses(ECL) model for the portfolio of trade receivables. The provision
measurement and recognition of impairment loss matrix is based on its historically observed default
on the following financial asset and credit risk rates over the expected life of trade receivable
exposure and is adjusted for forward looking estimates.

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At every reporting date, the historical observed Subsequent measurement

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

amortized cost using the Effective interest rate Offsetting of financial instruments
method. Gains and losses are recognized in Financials assets and financial liabilities are offset
profit or loss when the liabilities are derecognised and the net amount is reported in the balance
as well as through the Effective interest rate sheet if there is a currently enforceable legal right
amortization process. Amortized cost is to offset the recognized amounts and there is an
calculated by taking into account any discount or intention to settle on a net basis, to realize the
premium on acquisition and fees or costs that are assets and settle the liabilities simultaneously.
an integral part of the Effective interest rate. The
Effective interest rate amortization is included as Reclassification of financial assets/ financial
finance costs in the statement of profit and loss. liabilities
The Company determines classification of
Trade Payables financial assets and liabilities on initial recognition.
These amounts represents liabilities for goods and After initial recognition, no reclassification is made
services provided to the Company prior to the end for financial assets which are equity instruments
of financial year which are unpaid. The amounts and financial liabilities. For financial assets
are unsecured and are usually paid per the term of which are debt instruments, a reclassification is
contract with suppliers. Trade and other payables made only if there is a change in the business
are presented as current liabilities unless payment model for managing those assets. Changes
is not due within 12 months after the reporting to the business model are expected to be
period. They are recognized initially at fair value infrequent. The Company’s senior management
and subsequently measured at amortized cost determines change in the business model as
using Effective interest rate method. a result of external or internal changes which
are significant to the Company’s operations.
Financial guarantee contracts Such changes are evident to external parties. A
change in the business model occurs when the
Financial guarantee contracts issued by the
Company either begins or ceases to perform
Company are those contracts that require a
an activity that is significant to its operations.
payment to be made to reimburse the holder
If the Company reclassifies financial assets, it
for a loss it incurs because the specified debtor
applies the reclassification prospectively from
fails to make a payment when due in accordance
the reclassification date which is the first day of
with the terms of a debt instrument. Financial
the immediately next reporting period following
guarantee contracts are recognized initially as a
the change in business model. The Company
liability at fair value, adjusted for transaction costs does not restate any previously recognised gains,
that are directly attributable to the issuance of the losses (including impairment gains or losses) or
guarantee. Subsequently, the liability is measured interest.
at the higher of the amount of loss allowance
determined as per impairment requirements of 2.07 Derivative financial instruments and hedge
IND AS 109 and the amount recognized less accounting
cumulative amortization. Initial recognition and subsequent measurement
Derivative financial instruments are initially
Derecognition
recognised at fair value on the date on which
A financial liability is derecognised when the a derivative contract is entered into and
obligation under the liability is discharged or are subsequently re-measured at fair value.
cancelled or expires. When an existing financial Derivatives are carried as financial assets when
liability is replaced by another from the same the fair value is positive and as financial liabilities
lender on substantially different terms, or the when the fair value is negative.
terms of an existing liability are substantially
modified, such an exchange or modification The purchase contracts that meet the definition
is treated as the derecognition of the original of a derivative under Ind AS 109 are recognised
liability and the recognition of a new liability. The in the statement of profit and loss. Commodity
difference in the respective carrying amounts is contracts that are entered into and continue to
recognized in the statement of profit and loss. be held for the purpose of the receipt or delivery

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of a non-financial item in accordance with the an adjustment exists and no later than when the
Company’s expected purchase, sale or usage hedged item ceases to be adjusted for changes in
requirements are held at cost. its fair value attributable to the risk being hedged.
Any gains or losses arising from changes in If the hedged item is derecognised, the
the fair value of derivatives are taken directly to unamortised fair value is recognised immediately
profit or loss, except for the effective portion of in profit or loss. When an unrecognised firm
cash flow hedges, which is recognised in OCI commitment is designated as a hedged item, the
and later reclassified to profit or loss when the subsequent cumulative change in the fair value of
hedge item affects profit or loss or treated as the firm commitment attributable to the hedged
basis adjustment if a hedged forecast transaction risk is recognised as an asset or liability with a
subsequently results in the recognition of a non- corresponding gain or loss recognised in profit
financial asset or non-financial liability. and loss.
For the purpose of hedge accounting, hedges (ii) Cash flow hedges
are classified as: The effective portion of the gain or loss
on the hedging instrument is recognised
(i) Fair value hedges when hedging the in OCI in the cash flow hedge reserve,
exposure to changes in the fair value while any ineffective portion is recognised
of a recognised asset or liability or an immediately in the statement of profit and
unrecognised firm commitment loss.
(ii) Cash flow hedges when hedging the The ineffective portion relating to foreign currency
exposure to variability in cash flows that contracts is recognised in finance costs and the
is either attributable to a particular risk ineffective portion relating to commodity contracts
associated with a recognised asset or is recognised in other income or expenses.
liability or a highly probable forecast
transaction or the foreign currency risk in
Amounts recognised as OCI are transferred to
an unrecognised firm commitment
profit or loss when the hedged transaction affects
profit or loss, such as when the hedged financial
(iii) Hedges of a net investment in a foreign
income or financial expense is recognised or
operation
when a forecast sale occurs. When the hedged
item is the cost of a non-financial asset or non-
Hedges that meet the strict criteria for hedge
financial liability, the amounts recognised as OCI
accounting are accounted for, as described
are transferred to the initial carrying amount of the
below:
non-financial asset or liability.
(i) Fair value hedges
If the hedging instrument expires or is sold,
The change in the fair value of a hedging
terminated or exercised without replacement
instrument is recognised in the statement
or rollover (as part of the hedging strategy),
of profit and loss as finance costs. The
or if its designation as a hedge is revoked, or
change in the fair value of the hedged item
when the hedge no longer meets the criteria for
attributable to the risk hedged is recorded
hedge accounting, any cumulative gain or loss
as part of the carrying value of the hedged
previously recognised in OCI remains separately
item and is also recognised in the statement
in equity until the forecast transaction occurs or
of profit and loss as finance costs.
the foreign currency firm commitment is met.
For fair value hedges relating to items carried
at amortised cost, any adjustment to carrying 2.08 Investment in Subsidiaries and joint venture
value is amortised through profit or loss over The investment in subsidiary and Joint venture are
the remaining term of the hedge using the EIR carried at cost as per IND AS 27. The Company
method. EIR amortization may begin as soon as regardless of the nature of its involvement with

an entity (the investee), determines whether it incurred in bringing the inventories

is a parent by assessing whether it controls the to their present location and
investee. The Company controls an investee condition.
when it is exposed, or has rights, to variable
returns from its involvement with the investee ii) Cost of finished goods and work-
and has the ability to affect those returns through in-progress includes direct labour
its power over the investee. Thus, the Company and an appropriate share of fixed
controls an investee if and only if it has all the and variable production overheads.
following: Fixed production overheads are
allocated on the basis of normal
(a) power over the investee; capacity of production facilities.
Cost is determined on moving
(b) exposure, or rights, to variable returns weighted average basis.
from its involvement with the investee and
iii) Cost of traded goods has been
(c) the ability to use its power over the investee determined by using moving
to affect the amount of the returns. weighted average cost method and
comprises all costs of purchase,
Investments are accounted in accordance with duties, taxes (other than those
IND AS 105 when they are classified as held for subsequently recoverable from
sale. On disposal of investment, the difference tax authorities) and all other costs
between its carrying amount and net disposal incurred in bringing the inventories
proceeds is charged or credited to the statement to their present location and
of profit and loss condition.
2.09 Inventories iv) Net realizable value is the estimated

a) Basis of valuation: selling price in the ordinary course
i) Inventories other than scrap of business, less estimated costs
materials are valued at lower of of completion and estimated costs
cost and net realizable value after necessary to make the sale.
providing cost of obsolescence, if
any. However, materials and other 2.10 Non-current assets held for sale
items held for use in the production The Company classifies non-current assets
of inventories are not written down as held for sale if their carrying amounts will
below cost if the finished products be recovered principally through a sale rather
in which they will be incorporated than through continuing use and the sale is
are expected to be sold at or above considered highly probable. Such non-current
cost. The comparison of cost and assets classified as held for sale are measured at
net realizable value is made on an the lower of their carrying amount and fair value
item-by-item basis. less costs to sell. Any expected loss is recognized
immediately in the statement of profit and loss.
ii) Inventory of scrap materials have been
valued at net realizable value. The criteria for held for sale classification is
regarded as met only when the assets is available
b) Method of Valuation: for immediate sale in its present condition, subject
i) Cost of raw materials has been only to terms that are usual and customary for
determined by using moving sales of such assets, its sale is highly probable;
weighted average cost method and and it will genuinely be sold. The Company treats
comprises all costs of purchase, sale of the asset to be highly probable when:
duties, taxes (other than those
subsequently recoverable from i) The appropriate level of management is
tax authorities) and all other costs committed to a plan to sell the asset

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ii) An active programme to locate a buyer Computation and Disclosure Standards

and complete the plan has been initiated (ICDS) enacted in India by using tax rates
(if applicable) and the tax laws that are enacted at the
reporting date.
iii) The asset is being actively marketed for
sale at a price that is reasonable in relation The current income tax charge is
to its current fair value, calculated on the basis of the tax laws
enacted or substantively enacted at
iv) The sale is expected to qualify for the end of the reporting period in the
recognition as a completed sale within one countries where the company operate and
year from the date of classification, and generate taxable income. Management
periodically evaluates positions taken in
v) Actions required to complete the plan
tax returns with respect to situations in
indicate that it is unlikely that significant
which applicable tax regulation is subject
changes to the plan will be made or that
to interpretation and considers whether
the plan will be withdrawn.
it is probable that a taxation authority will
accept an uncertain tax treatment. The
The criteria for held for sale classification is
group measures its tax balances either
regarded as met only when the sale is highly
based on the most likely amount or the
probable and the asset is available for immediate
sale in its present condition and the assets expected value, depending on which
must have actively marketed for sale at a price method provides a better prediction of the
that is reasonable in relation to its current fair resolution of the uncertainty.
value. Actions required to complete the sale
should indicate that it is unlikely that significant Current income tax relating to item
changes to the plan to sale these assets will be recognized outside the statement of profit
made. Management must be committed to the and loss is recognized outside profit or loss
sale, which should be expected to qualify for (either in other comprehensive income or
recognition as a completed sale within one year equity).Current tax items are recognized in
from the date of classification. correlation to the underlying transactions
either in OCI or directly in equity.
Property, plant and equipment and intangible
assets once classified as held for sale are not b) Deferred Tax
depreciated or amortized. Assets and liabilities Deferred tax is provided in full using the
classified as held for sale are presented separately balance sheet method on temporary
as current items in the balance sheet. differences arising between the tax bases
of assets and liabilities and their carrying
2.11 Income Tax amounts in the financial statements.
The income tax expense or credit for the period However, deferred tax liabilities are not
is the tax payable on the current period’s taxable recognised if they arise from the initial
income based on the applicable income tax rate recognition of goodwill.
adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and Deferred tax liabilities are recognised for all
to unused tax losses. Income Tax expense for the taxable temporary differences, except:
year comprises of current tax and deferred tax.
i) When the deferred tax liability arises
a) Current income tax from the initial recognition of goodwill
Current income tax, assets and liabilities or an asset or liability in a transaction
are measured at the amount expected that is not a business combination
to be paid to or recovered from the and, at the time of the transaction,
taxation authorities in accordance with affects neither the accounting profit
the Income Tax Act, 1961 and the Income nor taxable profit or loss

ii) In respect of taxable temporary to the extent that it has become probable
differences associated with that future taxable profits will allow the
investments in subsidiaries, deferred tax asset to be recovered.
associates and interests in joint
ventures, when the timing of the Deferred tax assets and liabilities are
reversal of the temporary differences measured at the tax rates that are
can be controlled and it is probable expected to apply in the year when the
that the temporary differences will asset is realized or the liability is settled,
not reverse in the foreseeable future based on tax rates (and tax laws) that have
been enacted or substantively enacted at
Deferred tax assets are recognised for the reporting date.
all deductible temporary differences, the
carry forward of unused tax credits and Deferred tax relating to items recognized
any unused tax losses. Deferred tax assets outside the statement of profit and loss is
are recognised to the extent that it is recognized outside the statement of profit
probable that taxable profit will be available and loss (either in other comprehensive
against which the deductible temporary income or in equity). Deferred tax items are
differences, and the carry forward of recognized in correlation to the underlying
unused tax credits and unused tax losses transaction either in OCI or direct in equity.
can be utilised, except:
Tax benefits acquired as part of a business
i) When the deferred tax asset combination, but not satisfying the
relating to the deductible temporary criteria for separate recognition at that
difference arises from the initial date, are recognised subsequently if new
recognition of an asset or liability in information about facts and circumstances
a transaction that is not a business change. Acquired deferred tax benefits
combination and, at the time of recognised within the measurement period
the transaction, affects neither the reduce goodwill related to that acquisition
accounting profit nor taxable profit if they result from new information obtained
or loss. about facts and circumstances existing at
the acquisition date. If the carrying amount
ii) In respect of deductible temporary of goodwill is zero, any remaining deferred
differences associated with tax benefits are recognised in OCI/ capital
investments in subsidiaries, reserve depending on the principle
associates and interests in joint explained for bargain purchase gains. All
ventures, deferred tax assets are other acquired tax benefits realized are
recognised only to the extent that recognised in profit or loss.
it is probable that the temporary
differences will reverse in the 2.12 Revenue from contract with customers
foreseeable future and taxable The Company manufactures/ trades and sells
profit will be available against which a range of consumer electrical and electronic
the temporary differences can be products. Revenue from contracts with customers
utilised. involving sale of these products is recognized at a
point in time when control of the product has been
The carrying amount of deferred tax assets transferred, and there are no unfulfilled obligation
is reviewed at each reporting date and that could affect the customer’s acceptance of
reduced to the extent that it is no longer the products which usually happen on delivery of
probable that sufficient taxable profit will be goods. The Company also provides installation,
available to allow all or part of the deferred annual maintenance and warranty services
tax asset to be utilized. Unrecognized that are either sold separately or bundled
deferred tax assets are re-assessed at together with the sale of goods. The Company
each reporting date and are recognized recognizes these service revenue from sales

Standalone

of services over a period of time, because the incentive programmes wherein

customer simultaneously receives and consumes the customers are eligible for
the benefits provided by the Company. The several benefits on achievement of
Company has objective evidence that all criterion underlying conditions as prescribed
for acceptance has been satisfied. A receivable in the scheme programme such
is recognised when the control of the product is as credit notes, reimbursement,
transferred as the consideration is unconditional investments etc. Revenue from
and payment becomes due upon passage of contract with customer is presented
time as per the terms of contract with customers. after deducting cost of all these
schemes.
(a) Sale of goods
Revenue from sale of goods is recognised (ii) Warranty obligations
at the point in time when control of the The Company generally provides for
goods is transferred to the customer,
warranties for general repair of defects.
generally on delivery of the goods and
These warranties are assurance-type
there are no unfulfilled obligations.
warranties under Ind AS 115, which
are accounted for under Ind AS 37
The Company considers, whether there
(Provisions, Contingent Liabilities and
are other promises in the contract in which
Contingent Assets). However, in certain
their are separate performance obligations,
to which a portion of the transaction price non-standard contracts in respect of sale
needs to be allocated. In determining the of consumer durable goods, the Company
transaction price for the sale of goods, provides extended warranties and such
the Company allocates a portion of the warranties are termed as service-type
transaction price to different performance warranties and therefore, accounted for
obligations goods bases on its relative as separate performance obligations to
standalone prices and also considers the which the Company allocates a portion
following:- of the transaction price. Revenue from
service-type warranties is recognised over
(i) Variable consideration the period in which the service is provided
The Company recognizes revenue based on the time elapsed
from the sale of goods measured at
the standalone selling price of the (iii) Significant Financing Components
consideration received or receivable, In respect of short-term advances from its
net of returns and allowances, trade customers, using the practical expedient in
discounts and volume rebates. Ind AS 115, the Company does not adjust
If the consideration in a contract the promised amount of consideration
includes a variable amount, the for the effects of a significant financing
Company estimates the amount component if it expects, at contract
of consideration to which it will be inception, that the period between the
entitled in exchange for transferring transfer of the promised good or service
the goods to the customer. to the customer and when the customer
The variable consideration is pays for that good or service will be within
estimated at contract inception normal operating cycle.
and constrained until it is highly
probable that a significant revenue
In respect of long term contracts, the transaction
reversal in the amount of cumulative
price for these contracts is discounted, using
revenue recognised will not occur
when the associated uncertainty the interest rate implicit in the contract (i.e.,
with the variable consideration the interest rate that discounts the cash selling
is subsequently resolved. The price of the equipment to the amount paid in
Company operates several sales advance).

No significant element of financing is deemed when the Company performs under

present as the sales are made with a credit the contract (i.e., transfers control
term of 21 to 90 days, which is consistent with of the related goods or services to
market practice. the customer).
(b) Sale of services A trade receivable is recognised

if an amount of consideration
The Company provides installation, that is unconditional (i.e., only the
annual maintenance and extended passage of time is required before
warranty services that are sold separately. payment of the consideration is
The Company recognizes revenue from due). Refer to accounting policies of
sales of services over time, because the financial assets in section (Financial
customer simultaneously receives and instruments – initial recognition and
consumes the benefits provided by the subsequent measurement).
Company. Revenue from services related
activities is recognised as and when (d) Income from Service Concession
services are rendered and on the basis of Arrangement
contractual terms with the parties.
Revenue related to Street Lights
Upgrade services provided under
(c) Contract balances
service concession arrangement is
A contract asset is the right to recognized as per the agreement
consideration in exchange for with the grantor. The Company
goods or services transferred to the recognizes a financial asset arising
customer. Contract assets are in the from the service concession
nature of unbilled receivables, which agreement when it has an
arises when Company satisfies a unconditional contractual right to
performance obligation but does receive cash or another financial
not have an unconditional rights asset from or at the direction of the
to consideration. A receivables grantor of the concession for the
represents the Company’s right to upgrade services provided. Such
an amount of consideration that is financial assets are measured at fair
unconditional. Contract assets are value upon initial recognition.
subject to impairment assessment.
Refer to accounting policies on 2.13 Other Income
impairment of financial assets in
(a) Interest Income
section (Financial instruments –
initial recognition and subsequent For all debt instruments measured either at
measurement). amortised cost or at fair value through other
comprehensive income, interest income is
A contract liability is the obligation recorded using the effective interest rate
to transfer goods or services to a (EIR). EIR is the rate that exactly discounts
customer for which the Company the estimated future cash payments or
has received consideration (or an receipts over the expected life of the
amount of consideration is due) financial instrument or a shorter period,
from the customer. If a customer where appropriate, to the gross carrying
pays consideration before the amount of the financial asset or to the
Company transfers goods or amortised cost of a financial liability. When
services to the customer, a contract calculating the effective interest rate, the
liability is recognised when the Company estimates the expected cash
payment is made or the payment is flows by considering all the contractual
due (whichever is earlier). Contract terms of the financial instrument (for
liabilities are recognised as revenue example, prepayment, extension, call and

Standalone

similar options) but does not consider the (ii) Post employment
expected credit losses. Interest income is a) Gratuity
included in other income in the statement
The Employee’s Gratuity Fund Scheme,
of profit and loss.
which is defined benefit plan, is managed
by Trust with its investments maintained
2.14 Other Operating Revenues
with Bajaj Allianz Life Insurance Co.Ltd.
(a) Export benefit The liabilities with respect to Gratuity Plan
Revenue from export benefits arising are determined by actuarial valuation on
from Duty entitlement pass book (DEPB projected unit credit method on the balance
scheme), duty drawback scheme, sheet date, based upon which the Company
merchandise export incentive scheme, contributes to the Gratuity Scheme. The
Remission of duties and taxes on exported difference, if any, between the actuarial
product scheme are recognised on valuation of the gratuity of employees at
export of goods in accordance with their the year end and the balance of funds is
respective underlying scheme at fair value provided for as assets/ (liability) in the books.
of consideration received or receivable. Net interest is calculated by applying the
discount rate to the net defined benefit
(b) Government Grants liability or asset. The Company recognizes
Government Grants are recognized at the following changes in the net defined
their fair value when there is reasonable benefit obligation under Employee benefit
assurance that the grant will be received expense in statement of profit or loss:
and all the attached conditions will be
a) Service costs comprising current
complied with.
service costs, past-service costs,
When the grant relates to an expense gains and losses on curtailments
item, it is recognized as income on a and non-routine settlements
systematic basis over the periods that the
b) Net interest expense or income
related costs, for which it is intended to
compensate, are expensed. Government
Remeasurements, comprising of actuarial
grant related to the non-monetary asset
gains and losses, the effect of the asset
are recognised at nominal value and
ceiling, excluding amounts included in net
presented by deducting the same from
interest on the net defined benefit liability
carrying amount of related asset and the
and the return on plan assets (excluding
grant is then recognised in profit or loss
amounts included in net interest on the
over the useful life of the depreciable asset
net defined benefit liability), are recognized
by way of a reduced depreciation charge.
immediately in the Balance Sheet with a
corresponding debit or credit to retained
2.15 Retirement and other employee benefits
earnings through other comprehensive
(i) Short-term obligations income in the period in which they occur.
Liabilities for wages and salaries, including Remeasurements are not reclassified to
non monetary benefits that are expected profit or loss in subsequent periods.
to be settled wholly within twelve months
after the end of the period in which the b) Provident fund
employees render the related service are Retirement benefit in the form of provident
recognized in respect of employee service fund is a defined contribution scheme. the
upto the end of the reporting period and Company has no obligation, other than the
are measured at the amount expected contribution payable to the provident fund.
to be paid when the liabilities are settled. The Company recognizes contribution
The liabilities are presented as current payable through provident fund scheme
employee benefit obligations in the balance as an expense, when an employee renders
sheet. the related services. If the contribution

payable to scheme for service received The Company provides long term incentive plan
before the balance sheet date exceeds to employees via equity settled share based
the contribution already paid, the deficit payments as enumerated below:
payable to the scheme is recognized as
liability after deducting the contribution (a) Havells Employee Stock Purchase Plan:
already paid. If the contribution already The fair value of options granted under this
paid exceeds the contribution due for option plan is recognised as an employee
services received before the balance sheet benefit expense with corresponding
date, then excesses recognized as an increase in equity in accordance with
asset to the extent that the prepayment recognition and measurement principles
will lead to, for example, a reduction in as prescribed in Ind AS 102 Share Based
future payment or a cash refund. Payments when grant is made. The total
expense is recognised over the vesting
(iii) Other employee benefits period, which is the period over which
Employees (including senior executives) of all of the specified vesting conditions are
the Company receive remuneration in the to be satisfied. At end of the reporting
form of share based payment transactions, period, the entity revises its estimates of
whereby employees render services as the number of options that are expected
consideration for equity instruments. to vest based on the non-market vesting
In accordance with the Securities and and service conditions. It recognizes the
Exchange Board of India (Share Based impact of the revision to original estimates,
Employee Benefits) Regulations, 2014 and if any, in profit or loss, with corresponding
the Ind-AS 102 Share based payments, adjustment to equity.
the fair value of options granted under the
Havells Long Term cumulative expense
recognized for equity-settled transactions (b) Havells Employees Long term Incentive
at each reporting date until the vesting plan : These are in nature of employee
date reflects the extent to which the benefit wherein employees (including
vesting period has expired and the senior executives) of the Company
Company’s best estimate of the number of purchase shares of the Company at fair
equity instruments that will ultimately vest. value on the grant cum allotment date and
The expense or credit recognized in the receives remuneration in the form of ex-
Statement of Profit and Loss for a period gratia equivalent to predefined percentage
of purchase price paid by designated
represents the movement in cumulative
employee subject to serving of relevant
expense recognized as at the beginning
period of service after the grant cum
and end of that period and is recognized
allotment date. These are recognised at
in employee benefits expense.
fair value of shares granted and allotted as
Where the terms of an equity-settled employee benefit expense over the period
transaction award are modified, the of employee serving relevant period.
minimum expense recognized is the
expense as if the terms had not been
2.16 Leases
modified, if the original terms of the The Company assesses at contract inception
award are met. An additional expense whether a contract is, or contains, a lease. That
is recognized for any modification that is, if the contract conveys the right to control the
increases the total intrinsic value of the use of an identified asset for a period of time in
share-based payment transaction, or is exchange for consideration.
otherwise beneficial to the employee as
measured at the date of modification. Company as a lessee
The Employee stock option scheme is The Company’s lease asset classes primarily
administered through Havells Employee comprise of lease for land and building. The
Welfare Trust. Company applies a single recognition and

Standalone

measurement approach for all leases, except guarantees. The lease payments also
for short-term leases and leases of low-value include the exercise price of a purchase
assets. The Company recognises lease liabilities option reasonably certain to be exercised
to make lease payments and right-of-use assets by the Company and payments of penalties
representing the right to use the underlying for terminating the lease, if the lease term
assets. reflects the Company exercising the option
to terminate. Variable lease payments that
i) Right-of-use assets (ROU) do not depend on an index or a rate are
The Company recognises right-of-use recognised as expenses (unless they are
assets at the commencement date of the incurred to produce inventories) in the
lease (i.e., the date the underlying asset is period in which the event or condition that
available for use). Right-of-use assets are triggers the payment occurs.
measured at cost, less any accumulated
depreciation and impairment losses, and In calculating the present value of
adjusted for any remeasurement of lease lease payments, the Company uses its
liabilities. The cost of right-of-use assets incremental borrowing rate at the lease
includes the amount of lease liabilities commencement date because the interest
recognised, initial direct costs incurred, rate implicit in the lease is not readily
and lease payments made at or before determinable. After the commencement
the commencement date less any lease date, the amount of lease liabilities is
incentives received. Right-of-use assets increased to reflect the accretion of interest
are depreciated on a straight-line basis and reduced for the lease payments
over the shorter of the lease term and the made. In addition, the carrying amount of
estimated useful lives of the building (i.e. lease liabilities is remeasured if there is a
30 and 60 years) modification, a change in the lease term,
a change in the lease payments (e.g.,
If ownership of the leased asset transfers changes to future payments resulting
to the Company at the end of the lease from a change in an index or rate used
term or the cost reflects the exercise to determine such lease payments) or a
of a purchase option, depreciation is change in the assessment of an option to
calculated using the estimated useful life purchase the underlying asset.
of the asset. The right-of-use assets are
also subject to impairment. Refer to the Lease payments are allocated between
accounting policies in section ‘Impairment principal and finance cost. The finance
of non-financial assets’. cost is charged to profit or loss over the
lease period so as to produce a constant
The Company classifies ROU assets as periodic rate of interest on the remaining
part of Property plant and equipment balance of the liability for each period.
in Balance Sheet and lease liability in “
Financial Liability”. Variable lease payments that depend on
sales are recognised in profit or loss in the
ii) Lease Liabilities period in which the condition that triggers
At the commencement date of the lease, those payments occurs.
the Company recognises lease liabilities
measured at the present value of lease (iii) Short-term leases and leases of low-value
payments to be made over the lease assets
term. The lease payments include fixed The Company applies the short-term
payments (including in substance fixed lease recognition exemption to its short-
payments) less any lease incentives term leases (i.e., those leases that have a
receivable, variable lease payments that lease term of 12 months or less from the
depend on an index or a rate, and amounts commencement date and do not contain a
expected to be paid under residual value purchase option). It also applies the lease

of low-value assets recognition exemption (consolidation of shares) if any that have changed
to leases that are considered to be low the number of equity shares outstanding, without
value. Lease payments on short-term a corresponding change in resources.
leases and leases of low-value assets are
recognised as expense on a straight-line For the purpose of calculating diluted earnings
basis over the lease term. per share, the net profit or loss for the period
attributable to equity shareholders and the
2.17 Segment reporting : weighted average number of shares outstanding
Operating segments are reported in a manner during the period are adjusted for the effect of all
consistent with the internal reporting provided potentially dilutive equity shares.
to the decision making authority. The Board of
directors monitors the operating results of all 2.19 Borrowing Costs
product segments separately for the purpose of Borrowing cost includes interest and other
making decisions about resource allocation and costs incurred in connection with the borrowing
performance assessment. of funds and charged to Statement of Profit
& Loss on the basis of effective interest rate
The operating segments have been identified (EIR) method. Borrowing cost also includes
on the basis of the nature of products/services. exchange differences to the extent regarded as
Further: an adjustment to the borrowing cost.
1 Segment revenue includes sales and other Borrowing costs directly attributable to the
income directly identifiable with / allocable acquisition, construction or production of an
to the segment including inter - segment asset that necessarily takes a substantial period
revenue. of time to get ready for its intended use or sale are
capitalized as part of the cost of the respective
2 Expenses that are directly identifiable with asset. All other borrowing costs are recognized
/ allocable to segments are considered for as expense in the period in which they occur.
determining the segment result. Expenses
which relate to the Company as a whole 2.20 Cash and cash equivalents
and not allocable to segments are included
Cash and cash equivalent in the balance sheet
under unallocable expenditure.
comprise cash at banks and on hand and short-
term deposits with an original maturity of three
3 Income which relates to the Company as
months or less, that are readily convertible
a whole and not allocable to segments is
to a known amount of cash and subject to an
included in unallocable income.
insignificant risk of changes in value.
4 Segment assets and liabilities include
For the purpose of presentation in the statement
those directly identifiable with the
respective segments. Unallocable assets of cash flows, cash and cash equivalents includes
and liabilities represent the assets and cash on hand, deposit held at call with financial
liabilities that relate to the Company as a institutions, other short - term, highly liquid
whole and not allocable to any segment. investments with original maturities of three months
or less that are readily convertible to known amounts
2.18 Earnings Per Share of cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts. Bank
Basic earnings per share are calculated by dividing
overdrafts are shown within borrowings in current
the net profit or loss for the period attributable
liabilities in the balance sheet.
to equity shareholders by the weighted average
number of equity shares outstanding during the
2.21 Foreign currency translation
period. The weighted average number of equity
shares outstanding during the period is adjusted (i) Functional and presentation currency
for events such as bonus issue, bonus element in Items included in the financial statements
a rights issue, share split, and reverse share split are measured using the currency of the

Standalone

primary economic environment in which the estimate can be made of the amount of the
entity operates (‘the functional currency’). obligation. These estimates are reviewed at each
The Company’s financial statements are reporting date and adjusted to reflect the current
presented in Indian rupee (INR) which best estimates. If the effect of the time value of
is also the Company’s functional and money is material, provisions are discounted
presentation currency. using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
(ii) Transactions and balances discounting is used, the increase in the provision
Foreign currency transactions are due to the passage of time is recognized as a
translated into the functional currency finance cost.
using the exchange rate prevailing at the
date of the transaction. Foreign exchange Insurance claims are accounted for on the basis
gains and losses resulting from the of claims admitted / expected to be admitted and
settlement of such transaction and from to the extent that the amount recoverable can
the translation of monetary assets and be measured reliably and realisation in respect
liabilities denominated in foreign currencies thereof is virtually certain.
at year end exchange rate are generally
Warranty Provisions
recognised in the statement of profit and
loss. Provision for warranty-related costs are
recognized when the product is sold or service
Non-monetary items that are measured in is provided to customer. Initial recognition is
terms of historical cost in a foreign currency based on historical experience. the Company
are translated using the exchange rates at periodically reviews the adequacy of product
the dates of the initial transactions. Non- warranties and adjust warranty percentage and
monetary items measured at fair value in warranty provisions for actual experience, if
a foreign currency are translated using the necessary. The timing of outflow is expected to
exchange rates at the date when the fair be with in one to seven years.
value is determined.
Provision for E-Waste/Plastic-Waste
(iii) Exchange differences
Provision for E-Waste/Plastic-Waste management
Exchange differences arising on settlement costs are recognized when the liability in respect
or translation of monetary items are of products sold to customer is established in
recognized as income or expense in accordance with E-waste Management Rules,
the period in which they arise with the 2016 as notified by Government of India. Initial
exception of exchange differences on recognition is based on liability computed
gain or loss arising on translation of non- based on Extended Producer Responsibility
monetary items measured at fair value as promulgated in said Rules including cost to
which is treated in line with the recognition comply the said regulation and as reduced by
of the gain or loss on the change in expected realisation of collectable waste. The
fair value of the item (i.e., translation Company has assessed the liability to arise on
differences on items whose fair value gain year to year basis.
or loss is recognized in OCI or profit or loss
are also recognized in OCI or profit or loss, Contingent liabilities
respectively).
A contingent liability is a possible obligation that
arises from past events whose existence will be
2.22 Provisions and Contingent Liabilities
confirmed by the occurrence or non-occurrence
Provisions (including reimbursement) of one or more uncertain future events beyond the
A provision is recognized when the Company has control of the Company or a present obligation
a present obligation (legal or constructive) as a that is not recognized because it is not probable
result of past event, it is probable that an outflow that an outflow of resources will be required to
of resources embodying economic benefits will settle the obligation. A contingent liability also
be required to settle the obligation and a reliable arises in extremely rare cases, where there is

a liability that cannot be recognized because it market participant that would use the asset in its
cannot be measured reliably. the Company does highest and best use.
not recognize a contingent liability but discloses
its existence in the financial statements unless The Company uses valuation techniques that are
the probability of outflow of resources is remote. appropriate in the circumstances and for which
sufficient data are available to measure fair value,
Provisions, contingent liabilities, contingent maximising the use of relevant observable inputs
assets and commitments are reviewed at each and minimizing the use of unobservable inputs.
balance sheet date.
All assets and liabilities for which fair value is
2.23 Dividend Distributions measured or disclosed in the financial statements
The Company recognizes a liability to make are categorized within the fair value hierarchy,
the payment of dividend to owners of equity, described as follows, based on the lowest
when the distribution is authorised and the level input that is significant to the fair value
distribution is no longer at the discretion of the measurement as a whole:
Company. As per the corporate laws in India,
a distribution is authorised when it is approved Level 1- Quoted(unadjusted) market prices in
by the shareholders. A corresponding amount is active markets for identical assets or liabilities
recognised directly in equity.
Level 2- Valuation techniques for which the
2.24 Fair value measurement lowest level input that is significant to the fair value
measurement is directly or indirectly observable
The Company measures financial instruments at
fair value at each balance sheet date.
Level 3- Valuation techniques for which the
lowest level input that is significant to the fair
Fair value is the price that would be received to sell
value measurement is unobservable
an asset or paid to transfer a liability in an ordinary
transaction between market participants at the
For assets and liabilities that are recognized in
measurement date. The fair value measurement
the financial statements on a recurring basis,
is based on the presumption that the transaction
the Company determines whether transfers
to sell the asset or transfer the liability takes place
have occurred between levels in the hierarchy
either:
by re-assessing categorization (based on the
lowest level input that is significant to fair value
(i) In the principal market for asset or liability,
measurement as a whole) at the end of each
or
reporting period.
(ii) In the absence of a principal market, in the
For the purpose of fair value disclosures, the
most advantageous market for the asset
Company has determined classes of assets and
or liability.
liabilities on the basis of the nature, characteristics
The principal or the most advantageous market and risks of the asset or liability and the level of
must be accessible by the Company. the fair value hierarchy as explained above.
The fair value of an asset or liability is measured 2.25 Business Combinations

using the assumptions that market participants (i) Business combinations are accounted
would use when pricing the asset or liability, for using the acquisition method. The
assuming that market participants act in their cost of an acquisition is measured as the
economic best interest. aggregate of the consideration transferred
measured at acquisition date fair value
A fair value measurement of a non- financial asset and the amount of any non-controlling
takes into account a market participant’s ability to interests in the acquire. For each business
generate economic benefits by using the asset in combination, the Company elects
its highest and best use or by selling it to another whether to measure the non-controlling

Standalone

interests in the acquire at fair value or at balance appearing in the financial

the proportionate share of the acquiree’s statements of the transferee or is
identifiable net assets. Acquisition-related adjusted against revenue reserve.
costs are expensed as incurred.
e) The identity of the reserves shall
At the acquisition date, the identifiable be preserved and shall appear
assets acquired, and the liabilities assumed in the financial statements of the
are recognised at their acquisition date transferee in the same form in
fair values. For this purpose, the liabilities which they appeared in the financial
assumed include contingent liabilities statements of the transferor.
representing present obligation and they
are measured at their acquisition fair values f) The difference, if any, between
irrespective of the fact that outflow of the amounts recorded as share
resources embodying economic benefits capital issued plus any additional
is not probable. consideration in the form of cash
or other assets and the amount
(ii) Business Combinations involving entities of share capital of the transferor is
or businesses in which all the combining transferred to revenue reserves/
entities or businesses are ultimately capital reserves.
controlled by the same party or parties
both before and after the business 2.26 Significant accounting judgments,
combination, and where that control is not estimates and assumptions
transitory is accounted using the pooling The preparation of these standalone financial
of interests method as enumerated below: statements requires the management to make
judgments, use estimates and assumptions
a) The assets and liabilities of the that affect the reported amounts of revenues,
combining entities are reflected at expenses, assets and liabilities, and the
their carrying amounts. accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about
b) No adjustments are made to these judgements, assumptions and estimates
reflect fair values, or recognise any could result in outcomes that require a material
new assets or liabilities. The only adjustment to the carrying amount of the asset or
adjustments that are made are to liability affected in future periods.
harmonise accounting policies.
a) Leases
c) The financial information in the The Company determines the lease term
financial statements in respect of as the non-cancellable term of the lease,
prior periods should be restated together with any periods covered by an
as if the business combination had option to extend the lease if it is reasonably
occurred from the beginning of the certain to be exercised, or any periods
preceding period in the financial covered by an option to terminate the
statements, irrespective of the lease, if it is reasonably certain not to be
actual date of the combination. exercised.
However, if business combination
had occurred after that date, the The Company has several lease contracts
prior period information shall be that include extension and termination
restated only from that date. options. The Company applies judgement
in evaluating whether it is reasonably
d) The balance of the retained certain whether or not to exercise the
earnings appearing in the financial option to renew or terminate the lease.
statements of the transferor is That is, it considers all relevant factors
aggregated with corresponding that create an economic incentive for it to

exercise either the renewal or termination. India. Future salary increases and pension
After the commencement date, the increases are based on expected future
Company reassesses the lease term if inflation rates for India. Further details
there is a significant event or change in about the assumptions used, including a
circumstances that is within its control sensitivity analysis, are given in Note 32(4).
and affects its ability to exercise or not to
exercise the option to renew or to terminate d) Impairment of non-financial assets
(e.g., construction of significant leasehold The Company assesses at each reporting
improvements or significant customisation date whether there is an indication that an
to the leased asset). asset including intangible assets having
indefinite useful life and goodwill may be
b) Taxes impaired. If any indication exists, or when
Uncertainties exist with respect to the annual impairment testing for an asset
interpretation of tax regulations, changes is required, the Company estimates the
in tax laws, and the amount and timing asset’s recoverable amount. An assets
of future taxable income. Given the wide recoverable amount is the higher of an
range of business relationships differences asset’s CGU’S fair value less cost of
arising between the actual results and the disposal and its value in use. Where the
assumptions made, or future changes to carrying amount of an asset or CGU
such assumptions, could necessitate future exceeds its recoverable amount, the asset
adjustments to tax income and expense is considered impaired and is written down
already recorded. The Company establishes to its recoverable amount.
provisions, based on reasonable estimates.
The amount of such provisions is based In assessing value in use, the estimated
on various factors, such as experience of future cash flows are estimated based on
previous tax assessments and differing past rend and discounted to their present
interpretations of tax regulations by the value using a pre-tax discount rate that
taxable entity and the responsible tax reflects current market assessments of
authority. (Refer Note 17) the time value of money and the risks
specific to the asset. In determining fair
c) Gratuity benefit value less costs of disposal, recent market
The cost of defined benefit plans (i.e. transactions are taken into account. If no
Gratuity benefit) is determined using such transactions can be identified, an
actuarial valuations. An actuarial valuation appropriate valuation model is used. These
involves making various assumptions which calculations are corroborated by valuation
may differ from actual developments in the multiples, or other fair value indicators.
future. These include the determination of
the discount rate, future salary increases, e) Provision for warranty
mortality rates and future pension Warranty provisions is determined based
increases. Due to the complexity of the on the historical percentage of warranty
valuation, the underlying assumptions expense to sales for the same types of
and its long-term nature, a defined benefit goods for which the warranty is currently
obligation is highly sensitive to changes being determined. The same percentage
in these assumptions. All assumptions to the sales is applied for the current
are reviewed at each reporting date. In accounting period to derive the warranty
determining the appropriate discount expense to be accrued. It is adjusted to
rate, management considers the interest account for unusual factors related to the
rates of long term government bonds with goods that were sold, such as defective
extrapolated maturity corresponding to the inventory lying at the depots. The warranty
expected duration of the defined benefit claims may not exactly match the historical
obligation. The mortality rate is based warranty percentage, so such estimates
on publicly available mortality tables for are reviewed annually for any material

Standalone

changes in assumptions and likelihood and reviewed periodically including at the

of occurrence. The assumptions are end of each year. The useful life is based
consistent with prior years. (Refer Note 19) on historical experience with similar assets,
in anticipation of future events, which may
f) Provision for expected credit losses (ECL) have impact on their life such as change in
of trade receivables and contract assets technology.
The Company uses a provision matrix to
calculate ECLs for trade receivables and 2.27 Exceptional items
contract assets. The provision rates are The Company recognises exceptional item when
based on days past due for groupings items of income and expenses within Statement
of various customer segments that have of Profit and Loss from ordinary activities are
similar loss patterns (i.e., by geography, of such size, nature or incidence that their
product type, customer type and rating, disclosure is relevant to explain the performance
and coverage by letters of credit and other of the enterprise for the period.
forms of credit insurance). The provision
matrix is initially based on the Company’s 2.28 New and amended standards adopted by
historical observed default rates. The the Company
Company will calibrate the matrix to adjust The Ministry of Corporate Affairs had vide
the historical credit loss experience with notification dated March 23, 2022 notified
forward-looking information. At every Companies (Indian Accounting Standards)
reporting date, the historical observed Amendment Rules, 2022 which amended
default rates are updated and changes certain accounting standards, and are effective
in the forward-looking estimates are April 1, 2022. These amendments did not have
analysed. any impact on the amounts recognised in prior
periods and are not expected to significantly
The assessment of the correlation affect the current or future periods.
between historical observed default rates,
forecast economic conditions and ECLs is New and amended standards issued but not
a significant estimate. The amount of ECLs effective
is sensitive to changes in circumstances The Ministry of Corporate Affairs has vide
and of forecast economic conditions. notification dated March 31, 2023 notified
The Company’s historical credit loss Companies (Indian Accounting Standards)
experience and forecast of economic Amendment Rules, 2023 (the ‘Rules’) which
conditions may also not be representative amends certain accounting standards, and are
of customer’s actual default in the future. effective April 1 2023.
The information about the ECLs on the
Company’s trade receivables and contract The Rules predominantly amend Ind AS 12,
assets is disclosed in Note 32(10) Income taxes, and Ind AS 1, Presentation of
financial statements. The other amendments to
g) Property, Plant and Equipment and Ind AS notified by these rules are primarily in the
intangible assets nature of clarifications.
Property, Plant and Equipment represent
significant portion of the asset base of the These amendments are not expected to have a
Company. The charge in respect of periodic material impact on the company in the current or
depreciation is derived after determining future reporting periods and on foreseeable future
an estimate of assets expected useful transactions. Specifically, no changes would be
life and expected value at the end of its necessary as a consequence of amendments
useful life. The useful life and residual value made to Ind AS 12 as the companies accounting
of Company’s assets are determined by policy already complies with the now mandatory
Management at the time asset is acquired treatment.

3. Property, plant and equipment
194
(` in crores)
Particulars Freehold Buildings Leasehold Plant and Moulds Furniture Vehicles R&D Office Electrical Right of use asset Total Capital Grand
Land Improvements Machinery and Dies and Equipments Equipments Installations Leasehold Leasehold Work in Total
fixtures Land Buildings progress
Gross carrying amount (at cost)
At April 01, 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
Additions 0.50 16.37 2.02 129.51 79.45 20.67 6.19 5.11 12.31 4.19 1.87 132.69 410.87 243.32 654.19
Recognition of grant related to - (0.47) - (1.59) (1.41) (0.05) - - (0.10) (0.11) - - (3.72) - (3.72)
Havells India Limited

assets {Refer note 3 (v)}
Disposals/Adjustments* (0.01) (1.09) (0.06) (11.20) (1.31) (0.77) (2.75) (0.91) (9.51) (0.15) - (13.13) (40.89) (272.83) (313.72)
At March 31, 2022 27.77 789.89 15.12 975.91 372.18 73.38 16.18 46.33 119.25 50.75 230.15 302.06 3,018.97 56.75 3,075.72
Additions - 95.11 0.03 200.51 97.65 11.28 5.87 9.97 26.83 6.56 1.34 51.86 507.01 514.87 1,021.88
Recognition of grant related - - - - - - - - - - - - - - -

to assets
Disposals/adjustments * - (9.50) (1.10) (28.77) (13.41) (4.37) (0.72) (1.66) (5.01) (1.64) - (8.85) (75.03) (408.20) (483.23)
At March 31, 2023 27.77 875.50 14.05 1,147.65 456.42 80.29 21.33 54.64 141.07 55.67 231.49 345.07 3,450.95 163.42 3,614.37
Accumulated Depreciation
At April 01, 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
Charge for the year - 29.93 1.60 76.52 48.85 6.34 1.10 6.68 17.11 3.91 2.53 39.24 233.81 - 233.81
Disposals/adjustments - (0.81) (0.04) (6.93) (1.08) (0.53) (2.59) (0.76) (8.78) (0.13) - (6.54) (28.19) - (28.19)
At March 31, 2022 - 177.69 8.42 379.52 167.62 25.96 6.56 22.44 86.13 24.74 6.24 92.31 997.63 - 997.63
At March 31, 2023 - 205.82 9.28 455.16 217.66 30.70 7.58 27.96 96.86 27.63 8.78 135.75 1,223.18 - 1,223.18
Net carrying amount
At April 01, 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
At March 31, 2022 27.77 612.20 6.70 596.39 204.56 47.42 9.62 23.89 33.12 26.01 223.91 209.75 2,021.34 56.75 2,078.09
At March 31, 2023 27.77 669.68 4.77 692.49 238.76 49.59 13.75 26.68 44.21 28.04 222.71 209.32 2,227.77 163.42 2,391.19
* Disposal includes assets held for sale amounting to 10.53 crores (March 31, 2022 ` 0.73 Crores), and includes transfers in relation to Capital work in progress.
Notes: -
(i) Right of Use asset includes:-
(a) “Leasehold Land” represents land obtained on long term lease from various Government authorities.
(b) Leasehold Buildings represent properties taken on lease for its offices and warehouses accounted for in accordance with principle of Ind AS 116 ‘Leases’. Refer Note 32(3)
(ii) Capital work in progress as at March 31, 2023 includes assets under construction at various plants including air conditioning plant,washing machine, cable and flexible cable, lighting and fixtures etc.
Adjustment in relation to capital work in progress relates to addition in property, plant and equipment made during the year.
(iii) Disclosure of Contractual commitment for the acquisition of property plant and equipment has been provided in note 31(B).
(iv) The grant related to assets incudes:
(a) Subsidy of ` Nil (March 31, 2022 ` 3.72 core) on account of Modified Special Incentive Package (MSIP) scheme for making capital investment at Ghiloth District, General Zone Industrial Area RIICO
in the state of Rajasthan.
(v) The Company has not revalued its Property Plant and Equipment (Including Right of use assets) or Intangible assets during the year
Standalone

(vi) Net Block as on July 27, 2022 has been recognised as Exceptional Item in the Current year towards loss on account of fire at Neemrana plant
of the company for the following item. {Refer note32(15)}
(` in crores)
Particulars Plant and Moulds and Furniture and R&D Office Electrical Capital Work Grand
Equipments Dies fixtures Equipments Equipments Installations in progress Total
Gross carrying 17.90 0.58 3.05 0.04 2.13 1.32 0.55 25.57
amount (at cost)
Accumulated (6.72) (0.46) (1.56) (0.02) (1.76) (0.89) (11.41)
Depreciation
Net Block - 11.18 0.12 1.49 0.02 0.37 0.43 0.55 14.16
July 27,2022
(vii) Capital work-in-progress (“CWIP”) Ageing schedule
As at March 31, 2023

(` in crores)
Capital Work in progress Amount in CWIP for a period of Total
Less than 1 year 1-2 years 2-3 years More Than 3 Year
Projects in progress 163.42 - - - 163.42
Projects temporarily suspended - - - - -

(` in crores)
Projects in progress 53.58 3.17 - - 56.75
Note: There are no projects under Capital Work in progress where the completion is overdue or has exceeded its cost compared to its original plan.
(viii) Title deeds of Immovable Property not held in the name of the Company
Relevant line Description Gross Title deeds Whether title deed holder Property Reason for Immovable
item in the of item of carrying held in the is a promoter, director held since Property not held in the
Balance Sheet property value (` in name of or relative of promoter/ which date name of Company
crores) director or employee of
promoter/director
Property, plant Freehold 15.89 Late Shri Erstwhile Promoter/ Director March 31, The possession and original
and equipment land in Delhi Qimat Rai 2011 agreement to sell, of the
Gupta, on property is in the name of
behalf of M/s Company. The title deeds
Guptajee & will be registered in the
Company name of the Company once
state government's policy
on registry is changed.
Property, plant Building In 0.04 Shakereh No April 01, The possession and original
and equipment Bengaluru Shraddhanand 2012 agreement to sell, of the
property is in the name of
Company. The Company
is taking adequate legal
steps to get the title deeds
registered with appropriate
authority,

(ix) Property where company is a lessee but agreements are not executed
(` in crores)
Relevant line Description Gross Net Net Title deeds Whether title deed holder Property Reason for lease
item in the of item of carrying Carrying Lease held in the is a promoter, director held since agreement not executed
Balance Sheet property value value liabillity name of or relative of promoter/ which date with the Company
director or employee of
promoter/director
Property, plant Building in 43.20 39.44 41.82 QRG Promoter till Oct.12, 2022 August 01, Rent is being paid
and equipment Sahibabad Enterprises {refer note 32(6)} 2007 based on the mutual
Limited understanding and the
Property, plant Building in 96.79 82.29 86.93 QRG Promoter till Oct 12, 2022 July 01, 2008 monthly invoice for usage
and equipment Noida Enterprises {refer note 32(6)} charges raised by QRG
Limited Enterprises {refer note
32(6)}
4. Goodwill and other Intangible assets

(` in crores)
Particulars Computer R&D Trademarks Distributor/ Non- Total Goodwill Intangibles Total
Software Software Dealer compete Other Intangible assets under Intangible
Network Fee Assets development Assets
Gross carrying amount
(at cost)
At April 01, 2021 53.72 9.66 1,029.00 82.40 58.50 1,233.28 310.47 3.65 1,547.40
Additions 8.70 1.91 - - - 10.61 - 0.69 11.30
Disposals/adjustments (9.75) (0.06) - - - (9.81) - (3.88) (13.69)
At March 31, 2022 52.67 11.51 1,029.00 82.40 58.50 1,234.08 310.47 0.46 1,545.01
Additions 2.88 3.89 - - - 6.77 - 2.99 9.76
Disposals/adjustments - - - - - - - (0.46) (0.46)
At March 31, 2023 55.55 15.40 1,029.00 82.40 58.50 1,240.85 310.47 2.99 1,554.31
Accumulated
amortization
At April 01, 2021 35.81 5.56 - 40.20 32.58 114.15 - - 114.15
Charge for the year 6.93 1.43 - 10.30 8.36 27.02 - - 27.02
Disposals/adjustments (8.74) (0.04) - - - (8.78) - - (8.78)
At March 31, 2022 34.00 6.95 - 50.50 40.94 132.39 - - 132.39
Disposals/adjustments - - - - - - - - -
At March 31, 2023 39.75 8.67 - 60.80 49.30 158.52 - - 158.52
Net carrying amount
At April 01, 2021 17.91 4.10 1,029.00 42.20 25.92 1,119.13 310.47 3.65 1,433.25
At March 31, 2022 18.67 4.56 1,029.00 31.90 17.56 1,101.69 310.47 0.46 1,412.62
At March 31, 2023 15.80 6.73 1,029.00 21.60 9.20 1,082.33 310.47 2.99 1,395.79
Note:-
Impairment testing of goodwill and intangible assets with indefinite lives
Goodwill and Brand & Trademarks acquired on acquisition of Lloyd business having indefinite useful lives have been allocated to a separate single cash
generating unit (CGU) i.e. LLOYD consumers. The Company has performed an annual impairment test to ascertain the recoverable amount of such goodwill
and intangible assets. 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 a 5 years period. 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.
Management has determined following assumptions for impairment testing of CGU as stated Below :-
Assumption March 31, 2023 Approach used in determining value

Weighted average Cost of capital % (WACC) 15.30% 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% Long term growth rate has been taken basis on overall economic growth
rate, industry trend & expected long-term inflation in india.

Standalone

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 GGU 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.
Intangible assets under development

(` in crores)
Intangible assets under Amount in intangible assets under Total
development development for a period of

(` in crores)
Note: There are no projects under Intangible assets under development where the completion is overdue or has exceeded its cost compared to
its original plan.
5. Investments in Subsidiaries - Financial Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Investments in equity instruments of subsidiary
companies (unquoted)
(valued at cost, unless stated otherwise) {refer note 32(1)}
Havells Holdings Limited* - 13.65
Nil (March 31, 2022 : 17,37,362) ordinary shares of 1 GBP
each fully paid up
Less: Provision for impairment - - 12.47 1.18
Havells Guangzhou International Limited
(100% contribution fully paid in capital) (March 31, 2022: 0.45 0.45
100% contribution fully paid in capital)
Aggregate amount of unquoted investments 0.45 1.63
Aggregate amount of Impairment in value of - 12.47
investments
* Havells Holdings Limited, a wholly owned subsidiary of the Company, situated in Isle of man was dissolved on October 27, 2022 after completing
the process of voluntary winding up.

6. Contract Balances
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) Trade Receivables {refer note (a) below and note 11(B) } 972.92 767.50
972.92 767.50
(B) Contract Assets (Unsecured, considered good) {refer note (b)} 52.24 65.38
52.24 65.38
Non-current portion 25.57 38.83
Current portion 26.67 26.55
(C) Contract Liability {refer note (c) and note 22(v)} 86.63 59.29
86.63 59.29
Note:
(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 Company had entered in to agreements to customers wherein the Company had identified multiple performance
obligations as per Ind AS 115 “Revenue from contracts with customers”. The Company’s right to receive consideration is conditional
upon satisfaction of all performance obligations. Accordingly, the Company has recognised contract assets in respect of performance
obligations satisfied during the year. The contract assets arises when Company satisfies a performance obligation but does not have an
unconditional right to consideration. Contract assets have decreased in the current year on account of decrease in the time frame for a” right
to consideration” becoming unconditional.
(c) The Company has entered into the agreements with customer for sale of goods and services. The Company has identified these performance
obligations and recognised the 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
March 31, 2023 March 31, 2022
(A) NON-CURRENT INVESTMENT (valued at amortised cost)
Unsecured, considered good
(i) Deposits account with financial institution having remaining maturity period of - 272.68
more than twelve months (refer note (a) below)
(II) Investment in preference shares (fully paid-up)
Unquoted
1,72,563 (0.001%) compulosorily convertible cumulative participative 20.00 -
preference shares Singularity Furniture Pvt Ltd. (March 31, 2022 Nil)
20.00 272.68
Total non-current investments 20.00 -
Aggregate amount of unquoted investments 20.00 -
(a) The deposits maintained by the Company with financial institution comprise of the time deposits and are made of varying
periods between one year to two years depending on the cash requirements of the Company and earn interest at the
respective deposit rates.
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(B) TRADE RECEIVABLES (valued at amortised cost)
Unsecured {refer note 11(B)}
Trade receivables from contracts with customers - considered good 1.59 2.67
1.59 2.67
(C) OTHER FINANCIAL ASSETS (valued at amortised cost)
Earnest money and Security Deposits 33.62 21.74
Others
Bank deposits with original and remaining maturity of more than twelve months 115.24 20.20
148.86 41.94

Standalone

8. Other Non-Current Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Capital advances 47.70 7.22
Others
Prepaid expenses 4.71 5.82
Deposits with Statutory and Government authorities 26.53 29.89
78.94 42.93
9. Non Current Tax Assets (Net)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Current tax assets net of current tax payable 29.03 26.54
29.03 26.54
10. Inventories
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(Valued at lower of cost and net realisable value unless otherwise stated)
Raw materials and components 836.69 754.89
Work-in-progress 165.56 202.06
Finished goods 1,764.20 1,359.07
Traded goods 851.64 581.31
Stores and spares 46.19 34.07
Loose tools 4.21 2.62
Packing materials 23.87 20.19
Scrap materials 16.11 13.87
3,708.47 2,968.08
Notes:
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) The above includes goods in transit as under:
Raw materials 148.92 180.41
Finished goods 201.21 234.65
(b) The stock of scrap materials have been taken at net realisable value.

11. Current Financial Assets

(A) Current Investment (valued at amortised cost)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Deposits account with financial institution with original maturity of more than 180.87 153.42
twelve months but remaining maturity less than 12 months
180.87 153.42
Aggregate amount of impairment in the value of investments - -
Note:
(a) The deposits maintained by the Company with financial institution comprise of the time deposits and are made for varying
periods between one year to two years depending on the cash requirements of the Company and earn interest at the respective
deposit rates.
(B) Trade Receivables (valued at amortised cost)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Unsecured
Trade receivables from contract with customers - considered good 1031.69 812.08
Trade receivables - Credit impaired 28.89 27.16
Trade receivables (gross) 1060.58 839.24
Less : Impairment allowance for trade receivables 87.66 71.74
Trade receivables (net) 972.92 767.50
Non - current portion {refer note 7(B)} 1.59 2.67
(I) Trade receivables ageing schedule as at March 31, 2023

Particulars Outstanding for following periods from due date of payment
Unbilled Not due Less than 6 months 1-2 2-3 More than Total
dues 6 months - 1 year years years 3 years
(i) Undisputed Trade receivables - - 266.47 601.83 69.77 51.13 40.49 2.00 1031.69
considered good
(ii) Undisputed Trade receivables - - - - - - - - -
which have significant increase
in credit risk
(iii) Undisputed Trade receivables - - - - - - - - -
credit impaired
(iv) Disputed Trade receivables - - - - - - - - -
considered good
(v) Disputed Trade receivables - which - - - - - - - -
have significant increase in credit risk
(vi) Disputed Trade receivables - - - 0.18 1.59 5.03 1.53 20.56 28.89
credit impaired
Total - 266.47 602.01 71.36 56.16 42.02 22.56 1060.58
Less : Allowance for trade - (0.01) (0.21) (5.03) (17.83) (42.02) (22.56) (87.66)
receivables
Total - 266.46 601.80 66.33 38.33 - - 972.92

Standalone

(II) Trade receivables ageing schedule as at March 31, 2022

Unbilled Not Less than 6 months 1 - 2 years 2 - 3 More than Total
dues due 6 months - 1 year years 3 years
(i) Undisputed Trade receivables - 524.44 162.10 44.97 61.18 16.58 2.81 812.08
- considered good
(ii) Undisputed Trade - - - - - - - -
receivables - which have
significant increase in
credit risk
(iii) Undisputed Trade receivables - - - - - - - -
- credit impaired
(iv) Disputed Trade receivables - - - - - - - -
- considered good
(v) Disputed Trade receivables - - - - - - - -
- which have significant
increase in credit risk
(vi) Disputed Trade receivables - - 0.05 2.64 1.80 7.17 15.50 27.16
- credit impaired
Total - 524.44 162.15 47.61 62.98 23.75 18.31 839.24
Less : Allowance for trade - (0.01) (0.50) (4.43) (24.74) (23.75) (18.31) (71.74)
receivables
Total - 524.43 161.65 43.18 38.24 - - 767.50
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 Company 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) Cash and Cash Equivalents

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Current accounts (net) {refer note (c)} 63.24 24.72
Deposits with original maturity of less than three months {refer notes (b) and (d)} 363.57 624.72
456.86 763.70
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 for varying periods between one day to three months depending on the immediate cash requirements of the
Company and earn interest at the respective short-term deposits rates.
(c) Includes amount of ` 0.47 crores (March 31, 2022 ` 0.15 cr) related to Unspent CSR amount kept in separate bank account as per provision
of section 135(6) of Companies Act, 2013.
(d) Includes Fixed Deposit amounting ` 1.03 crores (March 31, 2022 ` 0.96 crores) related to Havells Employees Welfare Trust.
(e) Change in liabilities arising from financing activities

Long Term Borrowing Short Term Borrowing Lease Liabilities

March 31, March 31, March 31, March 31, March 31, March
2023 2022 2023 2022 2023 31, 2022
Opening balance 395.53 492.20 - - 220.87 130.66
Addition on account of new leases during - - - - 50.73 131.92
the year {refer Note 32(3)}
Deletion on account of termination of leases - - - - (4.10) (6.68)
during the year {refer Note 32(3)}
Cash inflow from borrowings - 0.04 - - - -
Cash outflows (393.69) (97.35) - - (44.28) (34.54)
Interest expense 5.14 25.10 - - 18.35 14.89
Interest paid (6.98) (24.46) - - (18.35) (14.89)
Closing balance - 395.53 - - 223.10 220.87
Non-current Borrowing {refer note 15 (A)} - 272.57 - - - -

Non-current lease liability {refer note 15 (B)} - - - - 186.91 178.82
Current maturity of long term borrowing - 122.96 - - - -
{refer note 18 (A)}
Current maturity of long term lease liability - - - - 36.19 42.05
{refer note 18 (B)}
(D) Other Bank Balances

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Deposits account with original maturity of more than three months but expiring less 551.59 72.07
than twelve months {refer notes (a) and (e)}
Deposits account with original maturity of more than twelve months 851.16 1,697.39
{refer notes (b) and (d)}
Unpaid dividend account {refer note (c)} 2.26 2.68
1405.01 1772.14
Notes:
(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.
(d) Includes Fixed Deposit amounting ` 4.34 crores (March 31, 2022 ` 4.14 crores) related to Unspent CSR amount kept in separate bank
account as per provision of section 135(6) of Companies Act, 2013.
(e) Includes Fixed Deposit amounting ` 6.45 crores (March 31, 2022 ` 4.82 crores) related to Havells Employees Welfare Trust.
(E) Other Financial Assets (valued at amortised cost)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Earnest money and security deposits 3.71 3.32
Contractual claims and other receivables {refer note (a)} 113.18 26.57
116.89 29.89
Notes:
(a) Contractual claims and other receivables includes claims in accordance with contract with vendors {refer Note 32(15)}

Standalone

12. Other Current Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Advances other than capital advances
Advances for materials and services 27.22 19.14
Others
Duty free licenses in hand 4.19 2.40
Government grant receivable 4.98 9.34
Balance with Statutory and Government authorities/Others 92.39 50.51
175.15 107.89
Movement of Government grant receivable
Opening balance 9.34 23.02
Accrual of grant related to income (credited to statement of profit and loss 10.13 10.66
account) (refer note 22)
Grant related to asset realised - (3.72)
Grant related to income realised (14.49) (20.62)
Closing Balance 4.98 9.34
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, 2023 March 31, 2022
Property, plant and equipment
Assets retired from active use 10.53 0.73
10.53 0.73
14. Equity
(A) Share capital
(` in crores)
As at As at
March 31, 2023 March 31, 2022
a) Authorized Share Capital
1,032,000,000 equity shares of `1/- each (March 31, 2022: 1,032,000,000 103.20 103.20
equity shares of `1/- each)
5,50,000 preference shares of `10/- each (March 31, 2022: 5,50,000 preference 0.55 0.55
shares of `10/- each)
103.75 103.75
b) Issued, subscribed and fully paid-up
626,509,738 equity shares of `1/- each (March 31, 2022: 626,303,067 equity 62.65 62.63
shares of `1/- each)

c) Reconciliation of the shares outstanding at the beginning and at the end of the year
March 31, 2023 March 31, 2022
No. of shares ` in crores No. of shares ` in crores
At the beginning of the year 62,63,03,067 62.63 62,60,13,006 62.60
Add: Exercise of employee stock purchase plan - 2,06,671 0.02 2,90,061 0.03
proceeds received {refer note 32(7)}
62,65,09,738 62.65 62,63,03,067 62.63
d) Shareholding of promoters
S. Shares held by promoters at the end As at As at % change
No of the year March 31, 2023 March 31, 2022 during the year
Promoter Name No. of equity % of Total No. of equity % of Total
shares shares shares shares
1 Shri Anil Rai Gupta (as Managing Trustee 7,74,25,200 12.35% 7,74,25,200 12.36% -
of ARG Family Trust)
2 Shri Surjit Kumar Gupta (as Trustee of 3,64,32,180 5.82% 3,64,32,180 5.82% -
SKG Family Trust)
3 QRG Investments and Holdings Limited 25,86,00,540 41.28% 6,87,41,660 10.98% 276.19%
4 QRG Enterprises Limited - - 18,98,58,880 30.31% -100.00%
Total 37,24,57,920 59.45% 37,24,57,920 59.47%
S. Shares held by promoters at the As at As at % change

No beginning of the year March 31, 2022 March 31, 2021 during the year
1 Shri Anil Rai Gupta (as Managing Trustee 7,74,25,200 12.36% 7,74,25,200 12.37% -
of
ARG Family Trust)
2 Shri Surjit Kumar Gupta (as Trustee of 3,64,32,180 5.82% 3,64,32,180 5.82% -
SKG Family Trust)
3 QRG Investments and Holdings Limited 6,87,41,660 10.98% 6,87,41,660 10.98% -
4 QRG Enterprises Limited 18,98,58,880 30.31% 18,98,58,880 30.33% -
Total 37,24,57,920 59.47% 37,24,57,920 59.49%
e) 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, 2022 : `1/- per share). Each holder of equity shares is entitled to one vote per shares. 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.

Standalone

f) Details of shareholders holding more than 5% shares in the Company is set out below (representing legal
and beneficial ownership):
Name of Shareholders As at As at
March 31, 2023 March 31, 2022
No. of shares % holding No. of shares % holding
Shri Anil Rai Gupta as Managing Trustee of 7,74,25,200 12.35 7,74,25,200 12.36
ARG Family Trust
Shri Surjit Kumar Gupta as Trustee of SKG Family Trust 3,64,32,180 5.82 3,64,32,180 5.82
QRG Enterprises Limited - - 18,98,58,880 30.31
QRG Investments and Holdings Limited 25,86,00,540 41.28 6,87,41,660 10.98
Nalanda India Equity Fund Limited 3,30,44,930 5.28 3,30,44,930 5.28
g) 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 (7).
(B) Other Equity

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Capital reserve 7.63 7.63
Securities premium 148.15 121.50
Share option outstanding account 2.30 0.53
General reserve 722.72 722.72
Retained earnings 5,671.03 5,073.63
Total other equity 6,551.83 5,926.01
a) Capital reserve 7.63 7.63
b) Securities premium
Add: Exercise of Employee stock purchase plan - proceeds received 26.65 31.12
Closing balance 148.15 121.50
c) Stock options outstanding account
Add : Options recognised during the year 3.23 1.15
Less : Options vested and exercised during the year (1.46) (1.26)
d) General reserve 722.72 722.72
e) Retained earnings
Opening balance 5,073.63 4,280.48
Net profit for the year 1,074.95 1,194.73
Items of other comprehensive income recognised directly in retained
earnings
Re-measurement gains / (losses) on defined benefit plans (net of tax) (7.67) 5.52
Dividends
Final Dividend of ` 4.50 per share for FY 2021-22 (` 3.50 per share for FY (281.93) (219.21)
2020-21)
Interim dividend of ` 3 per share for FY 2022-23 (` 3.00 per share for FY (187.95) (187.89)
2021-22)
Closing balance 5,671.03 5,073.63

(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.
(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 requirement to mandatorily transfer a specified percentage of the net profit
to general reserve before declaration of dividend 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) 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.
Net of shares 41,960 (March 31, 2022: 41,960) held by employee welfare trust included in the financial statements
(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, 2023 March 31, 2022
Term loans from bank (secured) {refer note (a) to (d) below} - 395.49
Term loans others (secured) - 0.04
- 395.53
Less : Current maturity of long term borrowing {refer note 18 (A)} - 121.12
Less: Interest accrued (included in current borrowing) - 1.84
Non-current portion - 272.57
Notes:
(a) The Company has availed secured loan of ` Nil (March 31, 2022: ` 250 crores), carrying interest rate of (3 months TBill rate plus
(288 - 488 base points)) against the sanctioned term loan amount of ` Nil (March 31, 2022: ` 250 crores) from CITI Bank N.A. The
Company has repaid its loan during the year. The current outstanding amount against the loan is ` Nil (March 31, 2022: ` 203.13
crores).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 was repayable in 16 equated quarterly instalments commencing from 15th month
from first drawdown date of April 21, 2020. This term 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 (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

Standalone

(b) The Company has availed secured loan of ` Nil (March 31, 2022: ` 250 Crores) carrying interest rate of 4 - 6 % against the sanctioned
amount of ` Nil (March 31, 2022: ` 350 crores) from HDFC Bank Limited. The Company has repaid its loan during the year. The current
outstanding amount against the loan is ` Nil (March 31, 2022: ` 190.52 crores).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 date of May 29,
2020. The term loan was repayable in quarterly instalments over the period of 5 years as per terms of agreement starting from [1st Loan of
` 120 Crores (June 2020- May 2025) and 2nd Loan of ` 130 Crores (April 2021- May-2025)]. This loan was 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.
(c) The Company was required to maintain the Debt Covenants i.e., Fixed assets coverage ratio, Debt service coverage ratio, gearing ratio,
leverage ratio and interest coverage ratio and Company had complied with all such covenants in the previous year i.e. March 31, 2022.
(d) During the previous year, The Company had borrowings from banks and financial institutions on the basis of security of current assets. The
Company had complied with the requirement of filing of monthly/ quarterly returns/statements of current assets with the banks or financial
institutions, as applicable, and these returns were in agreement with the books of accounts for the year ended March 31, 2022. During the
year, the Company has not been sanctioned working capital limits in excess of ` 5 crores, in aggregate from banks and financial institutions
on the basis of security of current assets and accordingly, the quarterly returns or statements are not required to be filed with banks or
financial institutions.
(e) As on the balance sheet date there is no default in repayment of loans and interest.
(f) The borrowings obtained by the company from banks and financial institutions had been applied for the purposes for which such loans were
taken. In respect of the term loans which were taken in the previous years, those were applied in the respective years for the purpose for
which the loans were obtained.
(g) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
(B) Lease Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Lease Liabilities {refer note 32(3)} 186.91 178.82
186.91 178.82
(C) Other Financial Liabilities (valued at amortised cost)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Employees payable pursuant to employee stock purchase plan 0.54 0.56
Long Term Employee Retention scheme 0.67 0.66
Employees ownership plan 3.23 -
Other Liabilities (retention money) 2.77 2.74
7.21 3.96
16. Non Current Provisions

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Provision for Gratuity 4.15 -
Product warranties and E-waste {Refer note 19(a)} 132.57 76.25
136.72 76.25

17. Income Taxes

The major components of income tax expense for the year ended March 31, 2023 and March 31, 2022 are:
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(a) Income tax expense in the statement of profit and loss comprises :
Current tax charge 361.17 407.80
Adjustment in respect of current tax of previous year 3.24 (10.25)
Total current income tax 364.41 397.55
Deferred tax charge / (credit)
Relating to origination and reversal of temporary differences 10.89 11.51
Income tax expense reported in the statement of profit or loss 375.30 409.06
(b) Other Comprehensive Income
Current income tax related to items recognised in OCI during the year:
Current income tax on re-measurement loss on defined benefit plans 2.58 (1.86)
Income tax related to items recognised in OCI during the year 2.58 (1.86)
(c) Reconciliation of tax expense and the accounting profit multiplied by
India’s domestic tax rate :
Accounting Profit before tax 1,450.25 1,603.79
Applicable tax rate 25.168% 25.168%
Computed Tax Expense 365.00 403.64
Expenses not allowed for tax purpose 8.53 5.69
Additional allowances for tax (0.08) (0.03)
Provisons for litigation 2.97 -
Utilisation of previously unrecognised tax losses - (0.24)
Others (1.12) -
Income tax charged to Statement of Profit and Loss at effective rate of 25.88% 375.30 409.06
(March 31, 2022: 25.51%) {Refer Note (ii) below}
(d) Deferred tax liabilities comprises :

(` in crores)
Balance Sheet Statement of profit and loss
As at As at Year ended Year ended
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Accelerated depreciation for tax purposes 393.84 382.72 11.12 14.09
Right of Use as per Ind AS 116 52.68 52.79 (0.11) 21.86
Lease liability as per Ind AS 116 (56.15) (55.59) (0.56) (22.71)
Expenses allowable on payment basis (9.82) (12.69) 2.87 (1.04)
Allowance for doubtful debts (22.06) (18.04) (4.02) (0.59)
Other Items giving rise to temporary 3.02 1.43 1.59 (0.10)
differences
Deferred tax liabilities (net) 361.51 350.62 10.89 11.51
(e) Deferred tax liabilities (net)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Opening balance as per last balance sheet 350.62 339.11
Deferred tax charged/(credited) to profit and loss account during the year 3.17 3.10
Adjustment in respect of deferred tax of previous year 7.72 8.41

Standalone

Notes:
(i) The Company has unabsorbed capital loss of ` 390.84 crores as on March 31, 2023 (March 31, 2022: ` 369.61 crores) out of which capital
loss of ` 219.75 crores will expire in financial year 2023-24, capital loss of ` 122.30 crores will expire in financial year 2025-26, capital loss
of ` 27.51 crores will expire in financial year 2029-30 and capital loss of ` 21.27 crores will expire in financial year 2030-31, 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 ` 89.28 crores (March 31, 2022: ` 84.56 Crore).
(ii) Effective tax rate has been calculated on profit before tax.
18. Current Financial Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) Short Term Borrowings
Current maturities of long term borrowings (Refer note 15(A)) - 121.12
Add: Interest accrued - 1.84
- 122.96
Current maturities of Lease liability {refer note 32 (3)} 36.19 42.05
36.19 42.05
(C) Trade Payables
Total outstanding dues of micro enterprises and small enterprises; and 154.96 114.08
Total outstanding dues of creditors other than micro enterprises and small enterprises 2,487.58 2,265.33
2,642.54 2,379.41
Trade payables ageing schedule as at March 31, 2023

Outstanding for following periods from due date of payment
Particulars Unbilled Not due Less than 1-2 2-3 More than Total
dues 1 year years years 3 years
(i) MSME - 150.32 4.64 - - - 154.96
(ii) Others 120.11 2,167.69 188.62 9.77 - - 2,486.19
(iii) Disputed dues - MSME - - - - - - -
(iv) Disputed dues - Others - - - - - 1.39 1.39
Total 120.11 2318.01 193.26 9.77 - 1.39 2642.54

Particulars Unbilled Not due Less than 1-2 years 2-3 years More than Total
dues 1 year 3 years
(i) MSME - 112.68 1.40 - - - 114.08
(ii) Others 83.02 1,971.00 206.63 3.29 - - 2263.94
Total 83.02 2,083.68 208.03 3.29 - 1.39 2379.41
Notes:
(i) Trade Payables include due to related parties ` 16.00 crores (March 31, 2022 : `16.92 crores) {refer note 32(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 32(6)}
(iv) The amounts falling in the category of more than 1 year are related to pending obligations on the part of the supplier as per agreed terms
and conditions mentioned in respective contracts.

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, 2023 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.
March 31, 2023 March 31, 2022

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 154.96 114.08
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
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
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, 2022 : ` Nil)
(D) Other Financial Liabilities (valued at amortised cost)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Unpaid dividend {refer note (a)} 2.26 2.68
Other payables
Employees payable pursuant to employee stock purchase plan
Long Term Employee Retention Scheme 2.04 2.06
Creditors for capital goods 45.30 21.47
Deposits from customers 48.48 45.55
Retention Money 18.62 9.43
Other liabilities
Employee benefit obligations 121.54 110.25
Interest accrued - 5.94
Sales incentives payable 381.23 319.29
Others {refer note (b)} 5.38 8.79
624.85 525.46
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 ` 0.26 crores (March 31, 2022 : `0.26 crores) 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) Other includes amount against E-waste liability {refer note 19(a)(ii)}.

Standalone

19. Current Provisions

(` in crores)
As at As at
March 31, 2023 March 31, 2022
i) Provision for employee benefits
Gratuity {refer note no. 32(4)} 31.21 8.65
(A) 31.21 8.65
ii) Other provisions
Product warranties {refer note (a)} 237.00 237.30
Litigations {refer note (b)} 6.70 7.28
(B) 243.70 244.58
(A) + (B) 274.91 253.23
a) Provision for warranties

(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) The table below gives information about movement in Warranty and E-waste provision
(` in crores)
As at As at
March 31, 2023 March 31, 2022
As at April 01, 2022 313.55 284.80
Charged/(credited) to profit or loss
- additional provisions recognized (refer note 30) 292.44 211.27
- unused amounts reversed - -
- unwinding of discount {refer note no. 28 } 5.78 6.24
Amounts used during the period (242.20) (188.76)
As at March 31, 2023 369.57 313.55
Non-current portion {refer note no. 16} 132.57 76.25
b) Provision for litigations

Provision for litigation amounting to ` 6.70 Crores (March 31, 2022: `7.28 Crores) is created against demands raised 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, 2023 March 31, 2022
As at April 01, 2022 7.28 12.93
Charged/(credited) to profit or loss 2.97 -
As at March 31, 2023 6.70 7.28
Non-current portion - -

20. Current Tax Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Current tax liabilities (net of advance tax and tax deducted at source amounting to 32.26 62.85
` 334.38 crores (March 31, 2022 ` 346.86 crores)
32.26 62.85
21. Other Current Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Advance against Land 0.50 -
Others
Goods and Services Tax Payable 55.69 123.45
Other statutory dues payable 82.80 65.60
138.99 189.05
22. Revenue From Operations:

(` in crores)
March 31, 2023 March 31, 2022
Revenue from contract with customers:
Sale of products 16,694.74 13,706.50
Sales of services 68.63 79.00
(A) 16,763.37 13,785.50
Other operating revenues
Export Incentive 10.13 10.66
Scrap sales 94.88 92.37
(B) 105.01 103.03
Total revenue from operations (A) + (B) 16,868.38 13,888.53
(i) Timing of revenue recognition

Goods transferred at a point in time 16,789.62 13,798.87
Services transferred over the time 68.63 79.00
Total revenue from contract with customers 16,858.25 13,877.87
Add : Export Incentive 10.13 10.66
Total revenue from operations 16,868.38 13,888.53
(ii) Disaggregation of revenue based on product or service

Switchgears 2,114.89 1,781.35
Cables 5,529.16 4,642.77
Lighting and fixtures 1,601.42 1,370.71
Electrical consumer durables 3,294.21 3,064.11
Lloyd Consumer* 3,368.43 2,260.21
Others 950.14 758.72
* Includes revenue from installation services and service-type warranties.

Standalone

(` in crores)
March 31, 2023 March 31, 2022
(iii) Revenue by location of customers
India 16,372.67 13,373.43
Outside India 485.58 504.44
(iv) Reconciliation of revenue recognised in statement of profit and loss

with contracted price
Revenue as per contracted price 16,967.20 13,964.90
Less: Cash discount (108.95) (87.03)
(v) Performance obligation

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 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, 2023 and expected time to recognise the same as revenue is as follows:-
(` in crores)
March 31, 2023 March 31, 2022
Within one year 82.53 54.30
More than one year 4.10 4.99
86.63 59.29
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 expected to be
recognised within one year. During the year ended March 31, 2023, revenue recognised from amount included in contract liability at the beginning
of year is ` 54.30 crores (March 31, 2022: ` 34.94 crores).
(vi) Disclosure pursuant to Appendix C of Ind AS 115

The Company was awarded a contract for replacement of existing conventional street/ park lights with LED street/ park lights
by a Municipal Corporation in April 2017. As per the agreement, the Company shall also be responsible for the operation and
maintenance of LED street/ park lights for a period of 7 years after installation. The consideration received by the Company
under the contract is based on the energy savings resulting from the LED street/ park lights. The revenue recognised during
the year and the contract assets balance as at year-end from such contract amounts to ` 45.89 Crores (March 31, 2022: `
45.43 crores) and ` 43.57Crores (March 31, 2022: ` 56.83 crores) respectively.

23. Other Income

(` in crores)
March 31, 2023 March 31, 2022
Interest received on financial assets carried at amortised cost:
Deposits with banks 104.17 80.74
Investment 12.99 15.26
Others - Finance Income and Interest 6.07 7.76
Other non-operating income
Exchange fluctuations (net) 21.58 33.48
Liabilities no longer required written back 0.23 0.15
Lease rent concession {refer note 32(3)} 0.12 0.49
Profit on sale of Investments - 0.97
Discount on License utilised 9.43 8.65
Subsidy Income 2.36 4.83
Miscellaneous income 20.07 8.09
177.02 160.42
24. Cost of Raw Materials and Components Consumed

(` in crores)
March 31, 2023 March 31, 2022
Copper 3,361.20 2,604.08
Aluminium 1,009.60 922.07
General plastic and Engineering Plastic 438.02 365.51
Paints and chemicals 509.45 486.41
Steel 275.73 217.59
Other material 3,349.50 2,868.87
9,317.92 7,772.06
25. Purchase of Traded Goods

(` in crores)
March 31, 2023 March 31, 2022
Switchgears 175.23 157.37
Lighting and fixtures 523.90 308.75
Electrical consumer durables 506.07 440.69
Lloyd Consumer 1,427.53 681.95
Cables 1.02 0.77
Others 360.83 241.95
2,994.58 1,831.48

Standalone

26. Change in Inventories of Finished Goods, Traded Goods and Work-in-Progress

(` in crores)
As at As at (Increase)/
March 31, 2023 March 31, 2022 Decrease
Inventories at the end of the year
Finished goods 1,764.20 1,359.07 (405.13)
Traded goods 851.64 581.31 (270.33)
Work in progress 165.56 202.06 36.50
Scrap materials 16.11 13.87 (2.24)
2,797.51 2,156.31 (641.20)
(` in crores)
March 31, 2022 March 31,2021 Decrease
Inventories at the beginning of the year
Finished goods 1,359.07 1,211.73 (147.34)
Traded goods 581.31 542.66 (38.65)
Work in progress 202.06 167.53 (34.53)
Scrap materials 13.87 14.91 1.04
2,156.31 1,936.83 (219.48)
27. Employee Benefits Expenses

(` in crores)
March 31, 2023 March 31, 2022
Salaries, wages, bonus, commission and other benefits 1,148.29 922.01
Contribution towards Provident Fund, Family Pension and ESI 47.72 40.45
Employee stock purchase plan expense {refer note no. 32(7)} 25.33 26.76
Gratuity expense {refer note no. 32(4)} 25.11 16.03
Staff welfare expenses 15.21 9.40
1,261.66 1,014.65
28. Finance Costs

(` in crores)
March 31, 2023 March 31, 2022
Interest expense on borrowings 5.14 25.10
Interest on income tax 4.17 7.01
Interest on lease liability {refer note no. 32(3)} 18.35 14.89
Miscellaneous financial expenses 0.18 0.17
Total interest expense 27.84 47.17
Unwinding of discount on long term provisions {refer note no. 19(a)(ii)} 5.78 6.24
Total Finance cost 33.62 53.41
29. Depreciation and Amortisation Expenses

(` in crores)
March 31, 2023 March 31, 2022
Depreciation of property, plant and equipment {refer note 3} 219.37 192.04
Amortization of intangible assets {refer note 4} 26.13 27.02
Depreciation of Right of use assets (refer note 3) 50.61 41.77
296.11 260.83

30. Other Expenses

(` in crores)
March 31, 2023 March 31, 2022
Consumption of stores and spares 53.25 54.68
Power and fuel 119.27 99.57
Job work and service charges 332.96 279.10
Rent 31.57 23.76
Repairs and maintenance:
Plant and machinery 41.04 15.35
Buildings 4.63 3.60
Others 68.62 52.57
Rates and taxes 2.41 2.58
Insurance 28.32 25.23
Trade mark fee and royalty 0.42 0.39
Travelling and conveyance 123.87 66.54
Communication expenses 5.95 6.59
Legal and professional charges 23.12 32.72
Payment to Auditors
Audit fee 1.35 1.35
Certification fee 0.03 0.01
Reimbursement of expenses 0.16 0.05
Payment to Tax Auditors
Tax audit fee 0.04 0.04
Contribution towards Corporate Social Responsibility (CSR) {refer note no. 32(8)} 26.68 23.66
Directors sitting fees 0.90 0.45
Exchange fluctuations (net) - -
Freight and forwarding expense 547.07 431.21
Advertisement and sales promotion 437.40 246.82
Commission on sales 120.66 98.30
Product warranties and after sales services (net of reversals) 292.44 211.27
Bank Charges 21.34 13.34
Loss on sale/ discard of property, plant and equipment (net) 0.14 1.43
Miscellaneous expenses 33.24 28.82
2,316.55 1,729.82
30A. Net Impairment Losses on Financial and Contract Assets

(` in crores)
March 31, 2023 March 31, 2022
Impairment allowance for trade receivables considered doubtful 15.91 2.39
15.91 2.39

Standalone

31. Commitments and Contingencies

(` in crores)
As At As At
March 31, 2023 March 31, 2022
A Contingent liabilities (to the extent not provided for)
a Claims / Suits filed against the Company not acknowledged as debts (Refer point (i)) 6.83 7.07
b Disputed tax liabilities in respect of pending litigations before appellate authorities 54.74 74.88
{Amount deposited under protest ` 13.04 crores (March 31, 2022: ` 29.13
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.
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, 2023 March 31, 2022
a) Excise / Customs / Service Tax
Demands raised by Excise and 2007-08 to 2009- 16.32 2007-08 to 2009-10, 16.34
Custom department. 10, 2015-16 to 2015-16 to 2017-18
2017-18 and and 2019-20
2019-20
b) Income Tax*
Disallowances / additions made by 2005-06, 2008-09 35.17 2005-06, 2009-10 38.78
the income tax department. to to
2014-15, 2016-17 2014-15, 2016-
to 2017-18 and 17,2018-19 and
2019-20 2019-20
c) Goods and Service Tax
Demands raised by GST 2017-18 1.23 2017-18 1.26
Department and and
2019-20 2019-20
d) Sales Tax / VAT
Demands raised by Sales tax / VAT 2003-04 1.87 2005-06 18.35
department. to to
2016-17 2016-17
e) Others
Demand of local area development 2001-02 0.12 2001-02 0.12
tax by the concerned authorities.
Demand of octroi along with 2010-11 0.03 2010-11 0.03
penalty in the state of Maharashtra
by the concerned authorities.
54.74 74.88
Notes:
The above figures are net off provisions made by the Company. The Company is contesting these demands and the management, believe that
its position will likely to be upheld in the appellate process. 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 19(ii)}.
The above amounts contain interest and penalty where included in the order issued by the department to the Company

B. Commitments
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Estimated amount of capital contracts remaining to be executed and not provided for 476.73 59.27
(Net of Advances amounting to ` 52.52 crores (March 31, 2022: ` 7.45 crores))
476.73 59.27
C Undrawn committed borrowing facility

(a) During the Year, the company has availed fund and non fund based unsecured working capital limit amounting to
` 1382.50 Crores under multiple banking arrangements from IDBI Bank Limited, Yes Bank Limited, Standard Chartered
Bank Limited, HSBC Bank, ICICI Bank Limited, IndusInd Bank Limited, HDFC Bank Limited, DBS Bank Limited and CITI
Bank N.A. An amount of ` 1102.86 crores remain undrawn as at Mach 31, 2023.
D Other Litigations
The Company has some sales tax and other tax related litigation of ` 6.70 crores (March 31, 2022: ` 7.28 crores) against
which liability has been assessed as probable and adequate provisions have been made with respect to the same.
E The Company has outstanding obligation amounting to ` 0.51 crores (March 31, 2022: ` 0.52 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.
F The Company has export obligation of ` 158.68 crores (March 31, 2022: ` 34.95 crores) on account of import duty exemption
of ` 8.72 crores (March 31, 2022: `1.50 crore) on capital goods under the Export Promotion Capital Goods (EPCG) and
` 0.15 crores Advance Authorisation scheme laid down by the Government of India. The Company expects to fulfil the
obligation in due course of time.
32. Other Notes on Accounts

1 Investment in subsidiaries
The Company ‘s investments in subsidiaries are as under:
Name of the subsidiaries Country of Portion of ownership Portion of ownership Method used to
incorporation interest as at interest as at account for the
March 31, 2023 March 31, 2022 investment
Havells Holdings Limited* Isle of Man 0% 100% At cost
Havells Guangzhou International China 100% 100% At cost
Limited
*dissolved on October 27, 2022
2 During the year, the Company has capitalised the following 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 Company.
(` in crores)
Particulars Year ended Year ended
March 31, 2023 March 31, 2022
Cost of material consumed 13.33 11.35
Employee benefits expense* 11.76 6.61
Other expenses 4.83 0.56
29.92 18.52
*Employee benefits expense includes overheads

Standalone

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 Company applies
the ‘short-term lease’ recognition exemptions for these leases. Payment made towards short term leases of low value assets
(lease of assets worth less than ` 2 Lacs) other than building and warehouse are recognized in the statement of Profit and
Loss as rental expenses over the tenure of such 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 1, 2021 224.57 122.89 347.46
Additions during the year 1.87 132.69 134.56
Recognition of grant related to assets - -
Deletion during the year - (6.59) (6.59)
Depreciation of Right of use assets (refer note 29) (2.53) (39.24) (41.77)
Balance as at March 31, 2022 223.91 209.75 433.66
Recognition of grant related to assets - - -
Depreciation on Right of use assets (refer note 29) (2.54) (48.07) (50.61)
iii The following is the carrying value of lease liability and movement thereof :
(` in crores)
Particulars Amount
Balance as at April 1, 2021 130.66
Additions during the year 131.92
Finance cost accrued during the year 14.89
Deletion during the year (6.68)
Lease rent concession (0.49)
Payment of lease liabilities including interest (49.43)
Balance as at March 31, 2022 220.87
Current maturities of Lease liability {refer note 18 (B)} 36.19
Non-Current Lease Liability {refer note 15 (B)} 186.91
223.10
iv The maturity analysis of lease liabilities are disclosed in Note 32(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, 2023 March 31, 2022
Depreciation charge of right-of-use assets - leasehold building 48.07 39.24
Depreciation charge of right-of-use assets - leasehold land 2.54 2.53
Finance cost accrued during the year (included in finance cost) (refer note 28) 18.35 14.89
Expense related to short term leases (included in other expense) (refer note 30) 31.57 23.76

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 The Company has received the Covid-19-related rent concessions for lessees amounting to ` 0.12 crores (March 31, 2022:
` 0.49 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, 2023 March 31, 2022
Acquisition of right of use assets 53.20 134.56
Disposals of right of use assets (4.22) (6.59)
4 Gratuity and other post-employment benefit plans

Disclosures pursuant to Ind AS - 19 “Employee Benefits” (notified 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) are given below :
Contribution to Defined Contribution Plan, recognised as expense for the year is as under:
(` in crores)
March 31, 2023 March 31, 2022
Employer's Contribution towards Provident Fund (PF) and National Pension 47.40 40.12
Scheme (NPS)
Employer's Contribution towards Employee State Insurance (ESI) 0.32 0.33
47.72 40.45
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 at 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.
The following tables summaries the components of net benefit expense recognised in the statement of profit or loss, the funded
status and amounts recognised in the balance sheet for the respective plans:
(` in crores)
March 31, 2023 March 31, 2022
a) Reconciliation of opening and closing balances of Defined Benefit
obligation
Present value of Defined Benefit obligation at the beginning of the year 140.29 129.22
Interest Expense 9.90 8.51
Current Service Cost 24.80 15.41
Benefit paid (6.64) (6.68)

Standalone

(` in crores)
March 31, 2023 March 31, 2022
Remeasurement of (Gain)/loss recognised in other comprehensive income
Actuarial changes arising from changes in financial assumptions 3.62 (5.06)
Actuarial changes arising from changes in experience adjustments 5.84 (1.11)
Present value of Defined Benefit obligation at year end 177.81 140.29
b) Reconciliation of opening and closing balances of fair value of plan

assets
Fair value of plan assets at beginning of the year 131.64 110.97
Expected return on plan assets 9.59 7.89
Employer contribution 8.65 18.25
Remeasurement of Gain/(loss) in other comprehensive income
Return on plan assets excluding interest income (0.79) 1.21
Benefits paid (6.64) (6.68)
Fair value of plan assets at year end 142.45 131.64
c) Net defined benefit asset/ (liability) recognised in the balance sheet

Fair value of plan assets 142.45 131.64
Present value of defined benefit obligation (177.81) (140.29)
Amount recognised in Balance Sheet- Asset / (Liability) (35.36) (8.65)
Current portion {refer note 19(i)} (31.21) (8.65)
Non-current portion (4.15) -
d) Net defined benefit expense (recognised in the Statement of profit and

loss for the year)
Current service cost 24.80 15.41
Interest cost (net) 0.31 0.62
Net defined benefit expense debited to statement of profit and loss 25.11 16.03
e) Remeasurement (gain)/ loss recognised in other comprehensive income

Return on Plan assets excluding amounts included in net interest expense 0.79 (1.21)
Recognised in other comprehensive income 10.25 (7.38)
f) Broad categories of plan assets as a percentage of total assets

Insurer managed funds 100% 100%
g) Principal assumptions used in determining defined benefit obligation

March 31, 2023 March 31, 2022
Employees Employees
Mortality Table (LIC) 2012-14 2012-14
(Ultimate) (Ultimate)
Discount rate (per annum) 7.37% 7.23%
Salary Escalation 9.50% 9.00%
Attrition Rate 7.00% 7.00%

h) Quantitative sensitivity analysis for significant assumptions is as below:

Increase / (decrease) on present value of defined benefits obligations at the end of the year
March 31, 2023 March 31, 2022
Discount rate Employees Employees
Increase by 0.50% (5.89) (4.90)
Decrease by 0.50% 6.71 5.59
Salary increase
Increase by 0.50% 6.58 5.49
Decrease by 0.50% (5.89) (4.91)
Attrition rate
Increase by 0.50% (0.75) (0.57)
Decrease by 0.50% 0.85 0.65
i) Maturity profile of defined benefit obligation

March 31, 2023 March 31, 2022
Employees Employees
Within the next 12 months (next annual reporting period) 12.75 10.22
Between 2 and 5 years 75.71 65.53
More than 5 years 248.85 198.35
Total expected payments 337.31 274.10
j) The average duration of the defined benefit plan obligation at the end of the reporting period is 21.87 years (March 31, 2022:
21.66 years).
k) The Company expects to contribute ` 29.08 crores (March 31, 2022 : ` 8.65 crores) to the plan during the next financial year.
l) 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.
m) 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.
n) 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.
o) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period
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

Standalone

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.
(` in crores)
Summary of Segmental Information Year ended Year ended
March 31, 2023 March 31, 2022
A. Revenue from operations
Segment Revenue (Sales and other operating revenue)
Switchgears 2,119.63 1,786.40
Cables 5,532.60 4,645.08
Lloyd Consumer 3,368.55 2,260.59
Others 950.27 758.73
16,868.38 13,888.53
Inter Segment Sale - -
Total segment revenue 16,868.38 13,888.53
B. Results
Segment results
Cables 524.67 540.26
Lloyd Consumer (220.89) (71.10)
Others 35.00 56.71
Segment profit 1,560.91 1,731.80
Reconciliation of segment operating profit to operating profit

Unallocated:
Other unallocable expenses net off (254.06) (235.02)
Other unallocable income 177.02 160.42
Operating Profit 1,483.87 1,657.20
Finance Costs {refer note 28} (33.62) (53.41)
Profit before exceptional items and tax 1,450.25 1,603.79
Exceptional Items:
a) Loss due to fire 112.52 -
b) Insurance claim receivable (112.52) -

(` in crores)
March 31, 2023 March 31, 2022
Net Profit/ (Loss) for the year before tax and after exceptional items 1,450.25 1,603.79
Income tax expense {refer note 17} (375.30) (409.06)
Profit after tax 1,074.95 1,194.73
C. Reconciliations to amounts reflected in the financial statements

Segment Assets
Cables 1,309.14 1,126.47
Others 285.57 239.43
Segment operating assets 8,275.84 6,906.24
Reconciliation of segment operating assets to total assets
Cash and bank balance {refer note, 7(C), 11(C) and (D)} 1,977.11 2,556.04
Fixed deposits with financial institutions {refer note 7(A) and 11(A)} 200.87 426.10
Investment in Subsidiaries{refer note 5} 0.45 1.63
Other unallocable assets 688.93 615.15
Total assets 11,143.20 10,505.16
Segment Liabilities
Cables 859.26 742.99
Others 201.92 124.07
Segment operating liabilities 3,521.94 3,051.64
Reconciliation of segment operating liabilities to total liabilities
Borrowings {refer note 15(A) and 18(A)} - 395.53
Lease Liabilities{refer note 15(B) and 18(B)} 223.10 220.87
Deferred tax liability {refer note 17(d)} 361.51 350.62
Current tax liabilities (net){refer note 20} 32.26 62.85
Other unallocable liabilities 389.91 435.01
Other non-current assets
Cables 27.78 4.11
Lloyd Consumer 5.10 0.35
Others 2.64 0.10
45.99 5.85
Unallocable assets 32.95 37.08
78.94 42.93
Capital Expenditure
Cables 19.67 21.04

Standalone

(` in crores)
March 31, 2023 March 31, 2022
Others 6.88 7.43
522.38 227.79
Unallocable capital expenditure 48.74 28.30
571.12 256.09
Depreciation and Amortization Expenses
Cables 64.38 61.01
Others 13.10 11.55
296.11 260.83
Non-cash expenses (net) other than depreciation
Cables 6.47 (1.07)
Others 0.89 0.08
18.57 14.21
15.72 14.21
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
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 16,382.80 13,384.09
Revenue-Overseas Market 485.58 504.44
16,868.38 13,888.53
Geographical Segment assets
Within India 11,085.34 10,443.61
11,143.20 10,505.16
Geographical Non-current assets
Within India 3,858.58 3,532.41
3,865.92 3,533.64
Note:- Non Current assets for this purpose excludes investment in subsidiaries, Contract assets, non current financial assets and non current tax assets
Notes:
(i) Finance income and costs on financial assets are not allocated to individual segments as the underlying instruments are managed at
company level.
(ii) Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed at
company level
(iii) Capital expenditure consists of additions of property, plant and equipment, Capital work in progress and intangible assets
(iv) There is no single external customer accounting to 10 per cent or more of an Company’s revenues

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 disclosed
below:-
(A) Names of related parties and description of
relationship :
Related party where control exists
Subsidiary Companies Relationship
1 Havells Holdings Limited Wholly Owned Subsidiary (WOS), (dissolved on October 27, 2022)
2 Havells Guangzhou International Limited Wholly Owned Subsidiary (WOS)
(B) Names of other related parties :

(i) Enterprises having significant influence (iv) Key Management Personnel
over company
QRG Enterprises Limited Shri Anil Rai Gupta, Chairman and Managing Director
QRG Investment and Holding Limited Shri Rajesh Kumar Gupta, Director (Finance) and Group CFO
Shri Ameet Kumar Gupta, Wholetime Director
(ii) Enterprises in which directors are having Shri Siddhartha Pandit, Wholetime Director
significant influence
QRG Foundation Shri Sanjay Kumar Gupta, Company Secretary
Guptajee & Company Non Executive Directors
QRG Medicare limited (till November 26, 2021) Smt. Pratima Ram (retired w.e.f June 30, 2021)
SRF Limited Shri Puneet Bhatia
Manipal Health Enterprises Pvt. Ltd Shri T V Mohandas Pai
Shri Surjit Kumar Gupta
Shri Jalaj Ashwin Dani
(iii) Employee benefit trust for the benefited Shri U K Sinha
employees
Havells India Limited Employees Gratuity Trust Shri B P Rao
Havells Employees Welfare Trust Shri S S Mundra
Shri Vivek Mehra
Smt Namrata Kaul
Shri Ashish Bharat Ram (appointed w.e.f. May 20, 2021)
(v) Other Related Parties

Shri Rakesh Mehrotra
- Associate Director
- HKHR Ventures LLP (Partner)
Shri Yogesh Kumar Gupta
- Eastern Distributors (Partner)
- Gupta Enterprise (Partner)
- YKG Enterprises (Partner)
- OP Gupta and Company (Partner)
- OPG Travels (Partner)

Standalone

(` in crores)
March 31, 2023 March 31, 2022
(C) Transactions during the year
(i) Commission paid on purchase
Subsidiaries / Step down Subsidiaries
Havells Guangzhou International Ltd. - 2.14
- 2.14
(ii) Sale of products (refer note (c) below)
Enterprises in which directors are having significant influence
Manipal Health Enterprises Pvt. Ltd - 0.01
Other Related Parties
OP Gupta and Company 1.63 0.77
1.63 0.78
(iii) Purchase of goods and stores & spares
SRF Limited 17.87 3.93
17.87 3.93
(iv) Sale of products (refer note (c) below) 7.21 -
SRF Limited 7.21 -
(v) Commission on sales (refer note (c) below)
Guptajee and Company 20.65 16.18
Eastern Distributors 19.07 16.24
Gupta Enterprise 2.01 2.23
YKG Enterprises 2.95 2.95
HKHR Ventures LLP 38.10 31.85
82.78 69.45
(vi) Rent / Usage Charges Paid
Enterprises having significant influence over company
QRG Enterprises Limited 29.52 27.07
(vii) Reimbursement of expenses paid
Enterprises having significant influence over company
QRG Medicare limited - 0.02

OPG Travels 1.15 0.45
1.15 0.47
(viii) CSR Contribution
Enterprises having significant influence
QRG Foundation 9.70 3.63
9.70 3.63
(ix) Contribution to post employee benefit plan
Havells India Limited Employees Gratuity Trust 8.65 18.25
(x) Managerial remuneration
Key Management Personnel
Salaries, wages, bonus, commission and other benefits 51.44 53.20
Contribution towards PF, Family Pension and ESI 2.01 1.82
Post-employment benefits 1.15 1.00
ESPP expense 13.01 15.16
Non-Executive Directors
Director sitting fees 0.90 0.45

(` in crores)
March 31, 2023 March 31, 2022
Commission 1.80 0.93
Remuneration to other Related Parties
73.31 75.56
(D) Balances at the year end

(i) Amount Payables
Enterprises in which directors are interested
Guptajee & Company 5.26 1.68
OP Gupta and Company - 0.03
16.00 16.92
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 through
payment. There have been no guarantees provided or received for any related party receivables or payables. For the year
ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related
parties (March 31, 2022: ` 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) As at March 31, 2023, the Company has not granted any loans to the promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person (March 31, 2022: Nil),
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) regulations, 2021 :
(a) Havells Employee Long Term Incentive Plan 2014 : In accordance with this scheme, 41,817 (March 31, 2022 : 68,356)
share options of Re. 1 each were granted, out of which 41,415 (March 31, 2022: 68,356) share options of Re. 1 each
were vested and allotted on June 03, 2022 (March 31, 2022 : June 05, 2021) to eligible employees at ` 1,289.85 (March
31, 2022: ` 1,074.10) 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 ` 2.23 crores (March 31, 2022 : ` 2.94 crores) has been recognised as employee stock purchase
plan expense (refer note 27).
(b) Havells Employee Stock Purchase Plan 2015 : In accordance with this scheme, 150,000 (March 31, 2022: 210,000)
share options of Re. 1 each were granted, vested and allotted on June 03,2022 (March 31, 2022: June 05, 2021) at
` 1,289.85 (March 31, 2022: ` 1,074.10) per share to eligible employees as contributed by the Company. 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 ` 19.35 crores (March 2022 :` 22.56 crores) has been recognised as employee stock
purchase plan expenses (refer note 27).

Standalone

(c) Havells Employee Stock Purchase Plan 2016 : In accordance with the said scheme, 24,942 (March 31, 2022: 8,454)
share options of Re. 1 each were granted to eligible employees with graded vesting in three years starting from 2022.
During the year, 13534 equity shares of Re. 1 each (March 31, 2022 : 11705 equity shares) were allotted at ` 1,289.85
(March 31, 2022 : `1,074.10) per share on June 03, 2022. Accordingly, a sum of `2.69 crores (March 31,2021: 1.26
crores) has been recognised as employee stock purchase plan expense refer note 29 and balance outstanding of ` 1.48
crores (March 31, 2022 : 0.53 crores) (refer note 14).’
(d) Havells Employee Stock Purchase Plan 2022 : In accordance with the said scheme, 17,733 (March 31, 2022: NIL) share
options of Re. 1 each were granted to eligible employees with graded vesting in three years starting from 2022. During
the year, 1722 equity shares of Re. 1 each (March 31, 2022 : NIL equity shares) were allotted at ` 1,348.55 (March 31,
2022 : NIL) per share on Nov 03, 2022. Accordingly, a sum of `1.06 crores (March 31,2021: NIL) has been recognised
as employee stock purchase plan expense refer note 27 and balance outstanding of ` 0.82 crores (March 31, 2022 :
NIL) (refer note 14).’
(i) Set out below is a summary of options granted and vested during the year under the plan
2022-23 2021-22
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 10,023 - 13,274 -
Options granted during the year 2,34,492 1,290.34 2,86,810 1,074.10
Options vested and exercised during the year (2,06,671) 1,290.34 (2,90,061) 1,074.10
Options lapsed during the year (3,153) - - -
Options outstanding at the end of the year 34,691 - 10,023
The weighted average share price at the date of exercise of options exercised during the year ended March 31, 2023 was
` 1290.34 per share (March 31, 2022 : ` 1074.10) per share. For share options outstanding at the end of the year, exercise
price ranges from 763.50 to 1348.55.
(ii) Share options outstanding at the end of the year have the following expiry dates and exercise prices:
Particulars March 31, 2023 March 31, 2022

ESPP Scheme ESPP 2022 ESPP 2016 ESPP 2016 ESPP 2016
Grant date Oct 03, 2022 May 05, 2022 May 22, 2021 March 31, 2020
Expiry date 2023-24 to 2026-27 2023-24 and 2024-25 2022-23 and 2023-24 2022-23
Outstanding share options 16011 18680 5636 4387
Weighted average remaining 4 years 2 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, 2023 was within range of ` 1271.53 to `
1348.16 per share (March 31, 2022 was within range of ` 1059.27 to ` 1073.90 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 (ESPP 2016) :

(a) Particulars March 31, 2023 March 31, 2022
Expected Price volatility of the company's share 10.10% to 15.29% 10.69% - 14.16%
Expected Dividend Yield 0.70% 0.68%
Share price at the grant date ` 1289.85 ` 1074.10
Risk free interest rate 7.15% 6.20%
The Model inputs for options granted (ESPP 2022) :

(b) Particulars March 31, 2023 March 31, 2022
Expected Price volatility of the company's share 7.78% to 15.30% -
Expected Dividend Yield 0.70% -
Share price at the grant date ` 1348.55 -
Risk free interest rate 7.41% -
(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

Havells Employees Long Term Incentive Plan 2014 2.23 2.94
Havells Employees Stock Purchase Plan 2015 19.35 22.56
Havells Employees Stock Purchase Plan 2022 1.06 -
Total expense recognised in the statement of profit and loss account as 25.33 26.76
a part of employee benefit expense:
8 Corporate Social Responsibility

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of
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:

March 31, 2023 March 31, 2022
Contribution to Reimagining Higher Education Foundation for building 13.00 11.00
educational infrastructure
Contribution to QRG Foundation for providing mid day meal, promotion of 9.70 3.63
sanitation & hygiene and free coaching
Contribution to Aga Khan Foundation for protection of national heritage - 4.12
Others: for development of healthcare infrastructure, trees plantation, etc. 4.19 4.13
Accrual towards unspent obligation in relation to
Ongoing Project - -
Other than ongoing Project - -
Total 26.89 22.88
Add : Carried forward from previous year 0.72 1.50
Less: Excess spent during the year to be carry forward to next year 0.93 0.72
Amount recognised in Statement of Profit and Loss 26.68 23.66
Amount required to be spent as per section 135 of the Act 26.68 23.66
Amount approved by the Board to be spent during the year 26.68 23.66
Amount spent during the year on
(i) Construction/ acquisition of assets 14.55 -

Standalone


March 31, 2023 March 31, 2022
(ii) Contribution to Trust/Universities/Society 8.30 15.19
(iii) On purpose other than above 4.04 7.69
Total Amount Spent 26.89 22.88
Excess spent from previous year utilised during the current year 0.72 1.50
Amount yet to be spent - -
Total 27.61 24.38
Total 26.68 23.66
Details of ongoing CSR projects under Section 135(6) of the Act

Year 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
FY 2020-21 - - 16 4.00 - 12 -
FY 2021-22 - 12.00 - - 4.00 - 8.00
FY2022-23 - 8.00 - - 4.00 - 4.00
Note: The company had earned an interest of INR 0.41 crores (0.48 crores in March 2021) on the funds in CSR unspent bank account during
the year, which is proposed to be spent in FY 2023-24 on ongoing project.
Details of CSR expenditure under Section 135(5) of the Act in respect of unspent amount other than ongoing projects
Year Opening Balance Amount deposited in Specified Amount required to be Amount spent Closing
unspent Fund of Schedule VII of the spent during the year during the year Balance
Act within 6 months unspent
FY 2021-22 - - 23.66 23.66 -
FY2022-23 - - 26.68 26.68 -
Details of excess CSR expenditure under Section 135(5) of the Act

Year Opening balance Amount required to be Amount spent Closing balance
excess spent spent during the year during the year excess spent
FY 2021-22 1.50 23.66 22.88 0.72
FY2022-23 0.72 26.68 26.89 0.93
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 200.87 426.10 200.87 426.10
Cash and bank balances (Current) 1,861.87 2,535.84 1,861.87 2,535.84
Trade Receivables 972.92 767.50 972.92 767.50
Other Financial assets (Current) 116.89 29.89 116.89 29.89
Other Financial assets (Non-current) 148.86 41.94 148.86 41.94
3,301.41 3,801.27 3,301.41 3,801.27

(` in crores)
Financial Liabilities valued at amortized cost
Trade Payables 2,642.54 2,379.41 2,642.54 2,379.41
Borrowings (current and non-current) - 395.53 - 395.53
Lease Liability (current and non current) 223.10 220.87 223.10 220.87
Other financial liabilities (non-current) 7.21 3.96 7.21 3.96
Other financial liabilities (current) 624.85 525.46 624.85 525.46
3,497.70 3,525.23 3,497.70 3,525.23
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 March 31, 2023
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.
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.
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

Standalone

Quantitative disclosures of fair value measurement hierarchy for assets as on March 31, 2023
March 31, 2023 Level 1 Level 2 Level 3
Assets carried at amortized cost for which fair value
are disclosed
Other Financial assets (Non-current) 148.86 - - 148.86
Other Financial assets (Current) 116.89 - - 116.89
Liabilities carried at amortized cost for which fair
value are disclosed
Borrowings (current and non-current) - - - -
Lease Liability (current and non current) 223.10 - - 223.10
Other financial liabilities (non-current) 7.21 - - 7.21
Other financial liabilities (current) 624.85 - - 624.85
are disclosed
Other Financial assets (non-current) 41.94 - - 41.94
Other Financial assets (current) 29.89 - - 29.89
value are disclosed
Borrowings (non-current) 395.53 - - 395.53
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, 2023 and
March 31, 2022
(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, JPY, CNY and other
currencies including KES,NPR, CHF, LKR, MWK,AED,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:
Gain/ (loss)
March 31, 2023 Impact on profit before tax and equity
Currency Currency Symbol Foreign Currency Indian Rupees 5% increase 5% decrease
in Crores in Crores in Crores in Crores
United States Dollar USD $ (3.16) (259.58) (12.98) 12.98
EURO EUR € (0.04) (3.77) (0.19) 0.19
Chinese RMB\CNY CNY CNY (5.88) (70.17) (3.51) 3.51
Other currencies (8.54) (5.33) (0.27) 0.27
March 31, 2022 Impact on profit before tax and equity

Currency Currency Symbol Foreign Currency Indian Rupees 5% increase 5% decrease
in Crores in Crores in Crores in Crores
United States Dollar USD $ (4.22) (319.78) (15.99) 15.99
EURO EUR € (0.06) (5.02) (0.25) 0.25

Note:
Figures in bracket represents payables

Standalone

(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 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, 2023
and March 31, 2022 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, 2023 March 31, 2022

Increase/decrease in Impact on profit before Increase/decrease in Impact on profit before
basis points tax and Equity basis points tax and Equity
Term Loan - - +0.50 (1.97)
- - -0.50 1.97
(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 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.
(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.

The group assigns the following internal credit ratings to each class of financial assets based on the assumptions, inputs and
factors specific to the class of the financial assets. The group provides for expected credit loss based on the following:
Internal Category Description of category Basis for recognition of Basis for recognition of
Rating expected credit loss provision expected credit loss
Trade receivables and Loans & Deposits
contract assets
VL 1 High quality assets, Assets where the counterparty has strong
negligible credit risk capacity to meet the obligations and
where the risk of default is negligible or nil
VL 2 Quality assets, low Assets where there is low risk of default Lifetime expected credit losses 12 month expected credit
credit risk and where the counterparty has sufficient (simplified approach) losses
capacity to meet the obligations and
where there has been low frequency of
defaults in the past
VL 3 Doubtful assets, credit- Assets where there is high risk of default 100 % provision is considered 100 % provision is
impaired and there is no reasonable expectation of for doubtful assets, credit considered for doubtful
recovery,the group continues to engage in impaired assets, credit impaired
enforcement activity to attempt to recover
the receivable due. Where recoveries are
made, these are recognised in profit or loss.

Particulars Unbilled Not due Less than 6 months - 1 - 2 2 - 3 years More than Total
dues 6 months 1 year years 3 years
(i) Gross carrying amount – trade - 266.47 602.01 71.36 56.16 42.02 22.56 1,060.58
receivables
(ii) Gross carrying amount – - 52.24 - - - - - 52.24
contract assets
(iii) Expected loss rate - 0.00% 0.03% 7.05% 31.75% 100.00% 100.00% 8.27%
(iv) Expected credit losses – trade - 0.01 0.21 5.03 17.83 42.02 22.56 87.66
receivables
(v) Expected credit losses – - - - - - - - -
contract assets
(vi) Carrying amount of trade - 266.46 601.80 66.33 38.33 - - 972.92
receivables (net of impairment)
Carrying amount of contract - 52.24 - - - - - 52.24
assets (net of impairment)

Outstanding for following periods from due date of
payment
Particulars Unbilled Not Less than 6 months - 1-2 2 - 3 More than 3 Total
dues due 6 months 1 year years years years
(i) Gross carrying amount – trade - 524.44 162.15 47.61 62.98 23.75 18.31 839.24
receivables
(ii) Gross carrying amount – contract assets - 65.38 - - - - - 65.38
(iv) Expected credit losses– trade - 0.01 0.50 4.43 24.74 23.75 18.31 71.74
receivables
(v) Expected credit losses– contract assets - - - - - - - -
(vi) Carrying amount of trade receivables - 524.43 161.65 43.18 38.24 - - 767.50
(net of impairment)
Carrying amount of contract assets - 65.38 - - - - - 65.38
(net of impairment)

Standalone

(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 March 31, 2023 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.
Financial assets for which allowance is measured using 12 months Expected Credit Loss Method (ECL)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Investment with financial institution 200.87 426.10
Cash and cash equivalents (Current) 456.86 763.70
Bank balances other than above (Current) 1405.01 1,772.14
Other bank balances (Non-current)
Others Non Current financial assets 148.86 41.94
Others Current financial assets 116.89 29.89
2,328.49 3,033.77
Financial assets for which allowance is measured using Life time Expected
Credit Loss Method (ECL)
Trade Receivables 972.92 767.50
972.92 767.50
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)
As at As at
March 31, 2023 March 31, 2022
Particulars
Trade Receivables
Not past due 266.46 524.43
0 to 180 days due past due date 601.80 161.65
More than 180 days past due date 104.66 81.42
Total Trade Receivables 972.92 767.50
The following table summarizes the change in loss allowance

measured using the life time expected credit loss model:-
As at the beginning of year 71.74 69.35
Addition and utilization during the year 15.91 2.39
As at the end of year 87.65 71.74
(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

The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting date based
on contractual undiscounted payments.

Less than 1 year 1 to 5 years More than 5 years Total
Borrowings - - - -
Other non current financial liabilities - 7.21 - 7.21
Trade payables 2,642.54 - - 2,642.54
Lease Liability (undiscounted) 54.49 166.07 121.92 342.48
Other current financial liabilities 624.85 - - 624.85

Less than 1 year 1 to 5 years More than 5 years Total
Borrowings 139.40 289.23 - 428.63
Trade payables 2,379.41 - - 2,379.41
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 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 capital requirements.
No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023
and March 31, 2022.
(` in crores)
Loans and borrowings ** - 428.63
Cash and cash equivalents {refer note 11(C)} (456.86) (763.70)
Net Debt (456.86) (335.07)
Equity / Net Worth 6,614.48 5,988.64
Total Capital 6,614.48 5,988.64
Capital and Net Debt 6,157.62 5,653.57
Gearing ratio (Net Debt/Capital and Net Debt) NA* NA*
Note: No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and
March 31, 2022
* This ratio is not relevant for both year as the Cash and cash equivalents exceed the Loans and Borrowings.
** Borrowings does not includes Lease liabilities

Standalone

12 Earnings per share

(` in crores)
March 31, 2023 March 31, 2022
a) Basic Earnings per share
Numerator for earnings per share
Profit after taxation (` in crores) 1074.95 1194.73
Denominator for earnings per share
Weighted average number of equity shares outstanding (Numbers) 62,64,88,642 62,62,50,618
during the year
Earnings per share-Basic (one equity share of Re. 1/- each) ` 17.16 19.08
b) Diluted Earnings per share

Weighted average number of equity shares for basic (Numbers) 62,64,88,642 62,62,50,618
earning per share
Effect of dilution
Share options (Numbers) 44,860 10,610
Weighted average number of equity shares outstanding (Numbers) 62,65,33,502 62,62,61,228
during the year adjusted for the effect of dilution
Earnings per share- Diluted (one equity share of Re. 1/- each) ` 17.16 19.08
13 Dividend Paid and Proposed

(` in crores)
March 31, 2023 March 31, 2022
Dividend declared and paid during the year:
Final Dividend of ` 4.50 per share for FY 2021-22 (` 3.50 per share for FY 2020-21) 281.93 219.21
Interim dividend of ` 3.00 per share for FY 2022-23 (` 3.00 per share for FY 2021-22) 187.95 187.89
469.88 407.10
Proposed Dividends on equity shares:
Final Dividend recommended by the board of directors for the year ended March 31, 281.93 281.84
2023 ` 4.50 per share of Re 1 each (March 31, 2022: `4.50 per share of Re 1 each)
subject to approval of shareholders in the ensuing annual general meeting.
281.93 281.84
Note: Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as liability as at reporting date.
14 Disclosure required under Section 186 (4) of the Companies Act, 2013.
Particulars of Investments made:
As at March 31, 2023 As at March 31, 2022
Sl. Name of the Investee Investment made Outstanding Investment made Outstanding
No Balance Balance
1 Havells Holdings Limited - - - 1.18
2 Havells Guangzhou - 0.45 - 0.45
International Limited
3 Singularity Furniture Pvt Ltd. 20.00 20.00 - -
4 Deposits account with - 180.87 50.00 426.10
financial institution

15 Fire Incident in Neemrana Plant

There was a fire at Neemrana plant of the Company in July 2022 resulting in destruction/ damage of property, plant and
equipment and inventories with book value of ` 47.53 crores and ` 64.99 crores respectively. The loss aggregating to `
112.52 crores has been accounted for in the books and disclosed as “Exceptional Items” in the standalone statement of
profit and loss. The process relating to filing of claim with the insurance company has been completed for property, plant and
equipment and subsequent to the year-end, the Company has received interim payment amounting to ` 23.98 crores. The
process of filing the surveyor report in respect of claim for inventories is in progress. The Company has adequate insurance
coverage for the aforesaid loss and based on its assessment of the loss and the terms and conditions of the insurance
policies, the claim is fully admissible. Accordingly, ` 112.52 crores has been disclosed as part of “Exceptional Items” in the
standalone statement of profit and loss. Also refer to Note 11 (E).”
16 The Company has not been declared as a Wilful Defaulter by any bank or financial institution or government or any government
authority.
17 Analytical ratio 2022-23
Ratio Numerator Denominator As at As at Change Explanation for

March 31, March 31, change in the ratio
2023 2022 by more than 25%
as compared to the
previous year
(a) Current Ratio (times) March 31, 2023: 7041.25 March 31, 1.84 1.81 1.24% Not Applicable
= Current assets/ (March 31, 2022 :6586.50) 2023: 3832.27
Current liabilities (March 31, 2022
:3629.31)
(b) Debt-Equity March 31, 2023: NA March 31, 0.00 0.07 -100.00% Debt repayment
Ratio (times) = (March 31, 2022 : 395.53) 2023:6614.48
Total Borrowings/ (March 31, 2022
Shareholder's equity* :5988.64)
(c) Debt Service March 31, 2023: 1388.44 March 31, 3.00 8.71 -65.59% Debt repayment
Coverage Ratio = (March 31, 2022 : 1491.43) 2023: 463.29
Earnings available for (March 31,
debt service/ Debt 2022: 171.24)
service {refer note
15(A)(c)}
(d) Return on Equity March 31, 2023: 1074.95 March 31, 17.06% 21.42% -4.37% Not Applicable
Ratio % = Net Profits (March 31, 2022 : 1194.73) 2023: 6301.56
after taxes/ Average (March 31,
shareholder's equity 2022: 5576.55)
(e) Inventory turnover March 31, 2023: 16858.25 March 31, 5.05 4.97 1.67% Not Applicable
ratio (times) = Revenue (March 31, 2022 : 2023: 3338.28
from operations/ 13877.87) (March 31,
Average inventory 2022: 2793.99)
(f) Trade receivables March 31, 2023: 16858.25 March 31, 19.37 20.85 -7.09% Not Applicable
turnover ratio (times) = (March 31, 2022 : 2023: 870.21
Net credit revenue from 13,877.87) (March 31,
operations/ Average 2022: 665.57)
trade receivables
(g) Trade payables March 31, 2023: 14715..14 March 31, 5.87 5.77 1.58% Not Applicable
turnover ratio (times) = (March 31, 2022 : 2023: 2508.53
Net credit purchases/ 11480.37) (March 31,
Average trade payables 2022: 1988.10)

Standalone


2023 2022 by more than 25%
as compared to the
previous year
(h) Net capital turnoverMarch 31, 2023: 16858.25 March 31, 5.25 4.69 11.94% Not Applicable
ratio (times) = Revenue (March 31, 2022 : 2023: 3208.98
from operations/ 13877.87) (March 31,
Working capital 2022: 2957.19)
(i) Net profit ratio % =March 31, 2023: 1074.95 March 31, 6.38% 8.61% -2.23% Not Applicable
Net profit/ Revenue (March 31, 2022 : 1194.73) 2023: 16858.25
from operations (March 31,
2022:13877.87)
(j) Return on capital March 31, 2023: 1306.85 March 31, 18.73% 22.22% -3.49% Not Applicable
employed % = EBIT/ (March 31, 2022 : 1496.78) 2023: 6975.99
Capital employed {refer (March 31,
note ii} 2022: 6734.79)
(k) Return on March 31, 2023: 1306.85 March 31, 12.07% 15.49% -3.42% Not Applicable
investment % = EBIT/ (March 31, 2022 : 1496.78) 2023: 10824.18
Average total assets (March 31,
2022: 9662.69)
Analytical ratio 2021-2022

2022 2021 by more than 25%
as compared to the
previous year
(a) Current Ratio (times) March 31, 2022: 6586.50 March 31, 1.81 1.92 -5.35% Not Applicable
= Current assets/ (March 31, 2021 : 5286.57) 2022: 3629.31
Current liabilities (March 31, 2021
: 2757.19)
(b) Debt-Equity March 31, 2022 : 395.53 March 31, 2022 0.07 0.10 -30.70% Debt repayment
Ratio (times) = (March 31, 2021 : 492.2) : 5988.64
Total Borrowings/ (March 31, 2021
Shareholder's equity* : 5164.45)
(c) Debt Service Coverage March 31, 2022 : 1491.43 March 31, 2022 8.71 9.88 -11.82% Not Applicable
Ratio = Earnings available (March 31, 2021 : 1306.17) : 171.24
for debt service/ Debt (March 31, 2021
service {refer note 15(A) : 132.25)
(c)}
(d) Return on Equity March 31, 2022 : 1194.73 March 31, 2022 21.42% 21.96% -2.43% Not Applicable
Ratio % = Net Profits (March 31, 2021 : 1039.64) : 5576.55
after taxes/ Average (March 31, 2021
shareholder's equity : 4734.63)
(e) Inventory turnover March 31, 2022 : March 31, 4.97 4.64 7.08% Not Applicable
ratio (times) = Revenue 13877.87 2022:2793.99
from operations/ (March 31, 2021 : (March 31, 2021
Average inventory 10418.05) :2245.89)
(f) Trade receivables March 31, 2022: March 31, 2022 20.85 25.64 -18.69% Not Applicable
turnover ratio (times) = 13,877.87 : 665.57
Net credit revenue from (March 31, 2021 : (March 31, 2021
operations/ Average 10418.05) : 406.26)
trade receivables


2022 2021 by more than 25%
as compared to the
previous year
(g) Trade payables March 31, 2022: 9773.06 March 31, 4.92 4.82 1.98% Not Applicable
turnover ratio (times) =(March 31, 2021 : 7256.74) 2022: 1988.10
Net credit purchases/ (March 31, 2021
Average trade payables : 1505.43)
(h) Net capital turnover March 31, 2022 : March 31, 4.69 4.12 13.94% Not Applicable
ratio (times) = Revenue 13,877.87 2022: 2957.19
from operations/ (March 31, 2021 : (March 31, 2021
Working capital 10,418.05) : 2529.38)
(i) Net profit ratio % = March 31, 2022: 1194.73 March 31, 2022 8.61% 9.98% -13.73% Not Applicable
Net profit/ Revenue (March 31, 2021 : 1039.64) : 13877.87
from operations (March 31, 2021
: 10418.05)
(j) Return on capital March 31, 2022 : 1496.78 March 31, 22.22% 21.96% 1.23% Not Applicable
employed % = EBIT/ (March 31, 2021 : 1316.4) 2022: 6734.79
Capital employed {refer (March 31, 2021
note ii} : 5995.76)
(k) Return on March 31, 2022 : 1496.78 March 31, 2022 15.49% 16.59% -6.64% Not Applicable
investment % = EBIT/ (March 31, 2021 : 1316.4) : 9662.69
Average total assets (March 31, 2021
: 7934.04)
Notes:
(i) Debt service = Interest & Lease Payments + Principal Repayments
(ii) Capital Employed = Tangible Net Worth + Total Borrowings + Deferred Tax Liability
(iii) Tangible Net worth is computed as Total Assets - Total Liabilities.
*Borrowings does not includes Lease liabilities
18 Struck off Companies: Details of relationship with Companies struck off under Section 248 of Companies Act, 2013
or Section 560 of the Companies Act, 1956:
Name of the struck off Company Nature of Balance Balance Relation with
transaction outstanding as at outstanding as at struck off
with struck off March 31, 2023 March 31, 2022 Company
Company (Nos.) (Nos.)
Manilal Patel Private Limited Shares held by 35 number of shares 35 number of shares Shareholder
(CIN: U17110MH1947PTC005911) struck off company of ` 1/- each of ` 1/- each
Multitech System Industrial Automation Purchase ` 0.01 crore - Vendor
Private Limited
U28910TN2014PTC097924
Naveli Decor Pvt. Ltd. Sales ` 0.04 crore - Customer
U52609UP2017PTC099523
Apostle Solutions Private Limited Sales ` 0.00 crore ` 0.01 crore Customer
U74110UP2007PTC032990
Samadhan Srbh Opc Private Limited Sales ` 0.00 crore - Customer
U74999UP2020OPC126709
Extreme Automation Pvt Ltd Sales ` 0.08 crore ` 0.08 crore Customer
U29220PN2010PTC135444
Ramesh Sales Corporation Pvt.Ltd. Sales ` 0.21 crore ` 0.21 crore Customer
U52390DL2014PTC266899

Standalone

19 Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(ii) Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
of the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed
under the Companies Act, 2013.
(iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of
arrangement which has an accounting impact on current or previous financial year.
(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the
tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual
currency during the current or previous year.
(vii) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and
equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(viii) The company has not granted any loans or advances in the nature of loans either repayable on demand.
20 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/-.
21 Note No.1 to 32 form integral part of the Standalone Balance Sheet and Standalone Statement of Profit and Loss.
As per our report of even date attached For and on behalf of Board of Directors
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023


Independent Auditor’s Report
To the Members of Havells India Limited Basis for Opinion
3. We conducted our audit in accordance with the Standards
Report on the Audit of the Consolidated Financial on Auditing (SAs) specified under Section 143(10) of the
Statements
Act. Our responsibilities under those Standards are further
described in the “Auditor’s Responsibilities for the Audit
Opinion
of the Consolidated Financial Statements” section of our
1. We have audited the accompanying consolidated report. We are independent of the Group, in accordance
financial statements of Havells India Limited (hereinafter with the ethical requirements that are relevant to our audit
referred to as the “Holding Company”) and its subsidiaries of the consolidated financial statements in India in terms
(Holding Company and its subsidiaries together referred of the Code of Ethics issued by the Institute of Chartered
to as “the Group”) (refer Note 30B to the attached
Accountants of India and the relevant provisions of the
consolidated financial statements), which comprise
Act, and we have fulfilled our other ethical responsibilities
the consolidated Balance Sheet as at March 31, 2023,
in accordance with these requirements. We believe
and the consolidated Statement of Profit and Loss
that the audit evidence we have obtained and the audit
including Other Comprehensive Income, the consolidated
evidence obtained by the other auditors in terms of their
Statement of Changes in Equity and the consolidated
reports referred to in sub-paragraph 15 of the Other
Statement of Cash Flows for the year then ended, and
Matters section below, other than the unaudited financial
notes to the consolidated financial statements, including
statements as certified by the management and referred
a summary of significant accounting policies and other
to in sub-paragraph 14 of the Other Matters section
explanatory information (hereinafter referred to as “the
below, is sufficient and appropriate to provide a basis for
consolidated financial statements”).
our opinion.
2. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Key Audit Matters
consolidated financial statements give the information 4. Key audit matters are those matters that, in our professional
required by the Companies Act, 2013 (“the Act”) in judgment, were of most significance in our audit of the
the manner so required and give a true and fair view consolidated financial statements of the current period.
in conformity with the accounting principles generally These matters were addressed in the context of our audit
accepted in India, of the consolidated state of affairs of of the consolidated financial statements as a whole, and
the Group, as at March 31, 2023, and consolidated total in forming our opinion thereon, and we do not provide a
comprehensive income (comprising of profit and other separate opinion on these matters. We have determined
comprehensive income), consolidated changes in equity the matters described below to be the key audit matters
and its consolidated cash flows for the year then ended. to be communicated in our report.
Key audit matter How our audit addressed the key audit matter
Assessment of impairment of goodwill and intangible assets with Our audit procedures among others, included the following:
indefinite useful lives a. Understanding and evaluating the design and operating
Refer Note 4 to the consolidated financial statements. effectiveness of internal controls over the impairment
assessment process, including preparation of the DCF model;
As at March 31, 2023, the consolidated financial statements includes
goodwill of ` 310.47 crores and intangible assets with indefinite useful b. Evaluating the Group's accounting policy in respect of
lives of ` 1,029 crores pertaining to acquisition of Lloyd business in impairment assessment of goodwill and intangible assets with
an earlier year. indefinite useful lives;
c. Understanding the cash flow projections and assumptions used
In accordance with the requirements of Indian Accounting Standard
in the DCF model, evaluating the mathematical accuracy and
(Ind AS) - 36 'Impairment of Assets', the management has allocated the
reading the report of the management’s expert;
said goodwill and intangible assets to the underlying Cash Generating
Unit (CGU), and tested the same for impairment using a Discounted d. Together with auditor's valuation experts, testing the
Cash Flow (DCF) model. Based on such test, the recoverable amount appropriateness of the DCF model and key assumptions therein
of the CGU is higher than the carrying amount of the said assets and and performing sensitivity analysis over key assumptions to
accordingly no adjustment for impairment is necessary. corroborate that the recoverable amount of the CGU is within a
reasonable range; and
We considered this as a key audit matter because of the significant carrying e. Testing related presentation and disclosures in the consolidated
value of the above mentioned assets and high estimation uncertainty financial statements.
in assumptions used such as discount rate, rate of growth over the
estimation period and terminal growth rate which are affected by future Based on the above procedures performed, the management's
market and economic conditions and, hence, are inherently uncertain. impairment assessment of the goodwill and intangible assets was
found to be reasonable.

Consolidated
Other Information 8. The respective Board of Directors of the companies

5. The Holding Company’s Board of Directors is responsible included in the Group are responsible for overseeing the
for the other information. The other information comprises financial reporting process of the Group.
the information included in the Annual report but does
not include the consolidated financial statements and our Auditor’s Responsibilities for the Audit of the
auditor’s report thereon.
Consolidated Financial Statements
9. Our objectives are to obtain reasonable assurance about
Our opinion on the consolidated financial statements whether the consolidated financial statements as a whole
does not cover the other information and we do not are free from material misstatement, whether due to fraud
express any form of assurance conclusion thereon. or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of
In connection with our audit of the consolidated financial assurance but is not a guarantee that an audit conducted
statements, our responsibility is to read the other in accordance with SAs will always detect a material
information and, in doing so, consider whether the other misstatement when it exists. Misstatements can arise from
information is materially inconsistent with the consolidated fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected
financial statements or our knowledge obtained in the
to influence the economic decisions of users taken on the
audit or otherwise appears to be materially misstated. If,
basis of these consolidated financial statements.
based on the work we have performed and the reports of
the other auditors as furnished to us (Refer paragraph 15
10. As part of an audit in accordance with SAs, we exercise
below), we conclude that there is a material misstatement
professional judgment and maintain professional
of this other information, we are required to report that
scepticism throughout the audit. We also:
fact. We have nothing to report in this regard.
• Identify and assess the risks of material misstatement
Responsibilities of Management and Those Charged of the consolidated financial statements, whether
with Governance for the Consolidated Financial due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
Statements
audit evidence that is sufficient and appropriate
6. The Holding Company’s Board of Directors is responsible to provide a basis for our opinion. The risk of not
for the preparation and presentation of these consolidated detecting a material misstatement resulting from
financial statements in term of the requirements of the Act that fraud is higher than for one resulting from error,
give a true and fair view of the consolidated financial position, as fraud may involve collusion, forgery, intentional
consolidated financial performance and consolidated cash omissions, misrepresentations, or the override of
flows, and changes in equity of the Group in accordance internal control.
with the accounting principles generally accepted in India,
including the Accounting Standards specified under • Obtain an understanding of internal control relevant
Section 133 of the Act. The respective Board of Directors to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
of the companies included in the Group are responsible for
Section 143(3)(i) of the Act, we are also responsible
maintenance of adequate accounting records in accordance
for expressing our opinion on whether the Holding
with the provisions of the Act for safeguarding the assets
Company has adequate internal financial controls with
of the Group and for preventing and detecting frauds and
reference to consolidated financial statements in place
other irregularities; selection and application of appropriate
and the operating effectiveness of such controls.
accounting policies; making judgments and estimates that
are reasonable and prudent; and the design, implementation • Evaluate the appropriateness of accounting policies
and maintenance of adequate internal financial controls, used and the reasonableness of accounting
that were operating effectively for ensuring accuracy and estimates and related disclosures made by
completeness of the accounting records, relevant to the management.
preparation and presentation of the consolidated financial • Conclude on the appropriateness of management’s
statements that give a true and fair view and are free from use of the going concern basis of accounting and,
material misstatement, whether due to fraud or error, which based on the audit evidence obtained, whether
have been used for the purpose of preparation of the a material uncertainty exists related to events or
consolidated financial statements by the Directors of the conditions that may cast significant doubt on the
Holding Company, as aforesaid. ability of the Group to continue as a going concern.
If we conclude that a material uncertainty exists,
7. In preparing the consolidated financial statements, the we are required to draw attention in our auditor’s
respective Board of Directors of the companies included report to the related disclosures in the consolidated
in the Group are responsible for assessing the ability of financial statements or, if such disclosures are
the Group to continue as a going concern, disclosing, as inadequate, to modify our opinion. Our conclusions
applicable, matters related to going concern and using the are based on the audit evidence obtained up to the
going concern basis of accounting unless management date of our auditor’s report. However, future events
either intends to liquidate the Group or to cease operations, or conditions may cause the Group to cease to
or has no realistic alternative but to do so. continue as a going concern.

• Evaluate the overall presentation, structure and of this subsidiary and our report in terms of sub-section (3) of
content of the consolidated financial statements, Section 143 of the Act including report on Other Information
including the disclosures, and whether the in so far as it relates to the aforesaid subsidiary, is based
consolidated financial statements represent the solely on such unaudited financial statements. In our opinion
underlying transactions and events in a manner that and according to the information and explanations given to
achieves fair presentation. us by the Management, these financial statements are not
material to the Group.
• Obtain sufficient appropriate audit evidence
regarding the financial information of the entities or 15. The financial statements of one subsidiary located outside
business activities within the Group to express an India, included in the consolidated financial statements,
opinion on the consolidated financial statements. which constitute total assets of ` 14.69 crores and net
We are responsible for the direction, supervision and assets of ` 11.42 crores as at March 31, 2023, total revenue
performance of the audit of the financial statements of ` 42.35 crores, total comprehensive income (comprising
of such entities included in the consolidated financial of loss and other comprehensive income) of ` 0.36 crores
statements of which we are the independent and net cash inflows amounting to ` 0.55 crores for the
auditors. For the other entities included in the year then ended have been prepared in accordance with
consolidated financial statements, which have accounting principles generally accepted in its country
been audited by other auditors, such other auditors and have been audited by other auditors under generally
remain responsible for the direction, supervision and accepted auditing standards applicable in its country.
performance of the audits carried out by them. We The Holding Company’s management has converted the
remain solely responsible for our audit opinion. financial statements of such subsidiary located outside
India from the accounting principles generally accepted in
11. We communicate with those charged with governance of its country to the accounting principles generally accepted
the Holding Company and such other entities included in in India. We have audited these conversion adjustments
the consolidated financial statements of which we are the made by the Holding Company’s management. Our opinion
independent auditors regarding, among other matters,
in so far as it relates to the balances and affairs of such
the planned scope and timing of the audit and significant
subsidiary located outside India, including other information,
audit findings, including any significant deficiencies in
is based on the report of other auditors and the conversion
internal control that we identify during our audit.
adjustments prepared by the management of the Holding
Company and audited by us.
12. We also provide those charged with governance with
a statement that we have complied with relevant
Our opinion on the consolidated financial statements, and
ethical requirements regarding independence, and to
our report on Other Legal and Regulatory Requirements
communicate with them all relationships and other
below, is not modified in respect of the above matters
matters that may reasonably be thought to bear on our
with respect to our reliance on the work done and the
independence, and where applicable, related safeguards.
reports of the other auditors and the financial statements
certified by the Management.
13. From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial Report on Other Legal and Regulatory Requirements
statements of the current period and are therefore the key 16. As required by paragraph 3(xxi) of the Companies
audit matters. We describe these matters in our auditor’s (Auditor’s Report) Order, 2020 (“CARO 2020”), issued by
report unless law or regulation precludes public disclosure the Central Government of India in terms of sub-section
about the matter or when, in extremely rare circumstances, (11) of Section 143 of the Act, we report that there are no
we determine that a matter should not be communicated qualifications or adverse remarks included in the CARO
in our report because the adverse consequences of doing 2020 report issued in respect of the standalone financial
so would reasonably be expected to outweigh the public statements of the Holding Company which are included
interest benefits of such communication. in these Consolidated Financial Statements.
In our opinion, and according to the information and
Other Matters
explanations given to us, CARO 2020 is not applicable to
14. We did not audit the financial statements of one subsidiary the subsidiary companies included in these Consolidated
located outside India, whose financial statements reflect Financial Statements, hence, this report does not contain
total assets of ` Nil and net assets of ` Nil as at March 31, a statement on the matter specified in paragraph 3(xxi) of
2023, total revenue of ` Nil, total comprehensive income CARO 2020 in relation to the subsidiary companies.
(comprising of loss and other comprehensive income) of `
(0.04) crores and net cash outflows amounting to ` 4.39 17. As required by Section 143(3) of the Act, we report, to the
crores for the period April 01, 2022 till October 27, 2022
extent applicable, that:
(dissolution date), as considered in the consolidated financial
statements. These financial statements are unaudited and (a) We have sought and obtained all the information and
have been furnished to us by the Management, and our explanations which to the best of our knowledge and
opinion on the consolidated financial statements in so far as belief were necessary for the purposes of our audit
it relates to the amounts and disclosures included in respect of the aforesaid consolidated financial statements.

Consolidated
(b) In our opinion, proper books of account as required (“Intermediaries”), with the understanding,
by law relating to preparation of the aforesaid whether recorded in writing or otherwise,
consolidated financial statements have been kept that the Intermediary shall, directly or
so far as it appears from our examination of those indirectly, lend or invest in other persons or
books and the reports of the other auditors. entities identified in any manner whatsoever
by or on behalf of the Holding Company
(c) The Consolidated Balance Sheet, the Consolidated
or any of such subsidiaries (“Ultimate
Statement of Profit and Loss (including other
Beneficiaries”) or provide any guarantee,
comprehensive income), the Consolidated Statement
security or the like on behalf of the Ultimate
of Changes in Equity and the Consolidated Statement
Beneficiaries (Refer Note 31(16)(ii) to the
of Cash Flows dealt with by this Report are in
consolidated financial statements).
agreement with the relevant books of account and
records maintained for the purpose of preparation of (b) The Management of the Holding Company
the consolidated financial statements. has represented to us that, to the best of
their knowledge and belief, as disclosed
(d) In our opinion, the aforesaid consolidated financial
in the notes to the accounts, no funds
statements comply with the Accounting Standards
(which are material either individually or
specified under Section 133 of the Act.
in the aggregate) have been received
(e) On the basis of the written representations received by the Holding Company or any of
from the directors of the Holding Company as on such subsidiaries from any person(s)
March 31, 2023 taken on record by the Board of or entity(ies), including foreign entities
Directors of the Holding Company, none of the (“Funding Parties”), with the understanding,
directors of the Holding Company is disqualified whether recorded in writing or otherwise,
as on March 31, 2023 from being appointed as a that the Holding Company or any of such
director in terms of Section 164(2) of the Act. subsidiaries shall, directly or indirectly,
lend or invest in other persons or entities
(f) With respect to the adequacy of internal financial
identified in any manner whatsoever by or
controls with reference to consolidated financial
on behalf of the Funding Party (“Ultimate
statements of the Group and the operating
Beneficiaries”) or provide any guarantee,
effectiveness of such controls, refer to our separate
security or the like on behalf of the Ultimate
report in Annexure A.
Beneficiaries (Refer Note 31(16)(ii) to the
(g) With respect to the other matters to be included in consolidated financial statements).
the Auditor’s Report in accordance with Rule 11 of
(c) Based on the audit procedures, that has been
the Companies (Audit and Auditor’s) Rules, 2014, in
considered reasonable and appropriate in
our opinion and to the best of our information and
the circumstances, performed by us, nothing
according to the explanations given to us:
has come to our notice that has caused us
i. The consolidated financial statements disclose to believe that the representations under
the impact, if any, of pending litigations on the sub-clause (i) and (ii) of Rule 11(e) contain any
consolidated financial position of the Group – Refer material misstatement.
Note 30A to the consolidated financial statements.
v. The dividend declared and paid during the year
ii. The Group was not required to recognise a by the Holding Company is in compliance with
provision as at March 31, 2023 under the Section 123 of the Act.
applicable law or accounting standards, as it
18. The Group has paid/ provided for managerial remuneration
does not have any material foreseeable losses
in accordance with the requisite approvals mandated by the
on long-term contract. The Group did not have
provisions of Section 197 read with Schedule V to the Act.
any derivative contracts as at March 31, 2023.
19. As proviso to Rule 3(1) of the Companies (Accounts)
iii. There has been no delay in transferring
Rules, 2014 (as amended), which provides for the feature
amounts required to be transferred to the
of recording of audit trail (edit log) facility in the accounting
Investor Education and Protection Fund by the
software used by the Group, for maintenance of books of
Holding Company during the year.
account and related matters, is applicable for the Holding
iv. (a) The Management of the Holding Company Company only with effect from financial year beginning
has represented to us that, to the best of April 1, 2023, the reporting under clause (g) of Rule 11 is
their knowledge and belief, as disclosed in currently not applicable.
the notes to the accounts, no funds (which
are material either individually or in the For Price Waterhouse & Co Chartered Accountants LLP
aggregate) have been advanced or loaned Firm Registration Number: 304026E/ E-300009
or invested (either from borrowed funds or
share premium or any other sources or kind Sougata Mukherjee
of funds) by the Holding Company or any of Partner
such subsidiaries to or in any other person(s) Place: Gurugram Membership Number: 057084
or entity(ies), including foreign entities Date: May 03, 2023 UDIN: 23057084BGYFRC1110

Annexure A to Independent Auditor’s Report
Referred to in paragraph 17(f) of the Independent Auditor’s Report of even date to the
members of Havells India Limited on the consolidated financial statements for the year
ended March 31, 2023
Report on the Internal Financial Controls with reference financial controls, both applicable to an audit of internal
to Consolidated Financial Statements under clause (i) financial controls and both issued by the ICAI. Those
of sub-section 3 of Section 143 of the Act Standards and the Guidance Note require that we
1. In conjunction with our audit of the consolidated financial comply with ethical requirements and plan and perform
statements of the Company as of and for the year ended the audit to obtain reasonable assurance about whether
March 31, 2023, we have audited the internal financial adequate internal financial controls with reference to
controls with reference to financial statements of Havells financial statements was established and maintained
India Limited (hereinafter referred to as “the Holding and if such controls operated effectively in all material
respects.
Company”). Reporting under clause (i) of sub section 3
of Section 143 of the Act in respect of the adequacy of
4. Our audit involves performing procedures to obtain audit
the internal financial controls with reference to financial
evidence about the adequacy of the internal financial
statements is not applicable to two subsidiaries as they
controls system with reference to financial statements
are not incorporated in India namely Havells Guangzhou
and their operating effectiveness. Our audit of internal
International Limited and Havells Holdings Limited
financial controls with reference to financial statements
(dissolved on October 27, 2022).
included obtaining an understanding of internal financial
controls with reference to financial statements, assessing
Management’s Responsibility for Internal Financial
the risk that a material weakness exists, and testing
Controls
and evaluating the design and operating effectiveness
2. The Board of Directors of the Holding Company, is of internal control based on the assessed risk. The
responsible for establishing and maintaining internal procedures selected depend on the auditor’s judgement,
financial controls based on internal control over financial including the assessment of the risks of material
reporting criteria established by the Company considering misstatement of the financial statements, whether due to
the essential components of internal control stated in the fraud or error.
Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (“the Guidance Note”) issued by 5. We believe that the audit evidence we have obtained
the Institute of Chartered Accountants of India (“ICAI”). is sufficient and appropriate to provide a basis for our
These responsibilities include the design, implementation audit opinion on the Holding Company’s internal financial
and maintenance of adequate internal financial controls controls system with reference to consolidated financial
that were operating effectively for ensuring the orderly statements.
and efficient conduct of its business, including adherence
to the Company’s policies, the safeguarding of its assets, Meaning of Internal Financial Controls with reference
the prevention and detection of frauds and errors, the to financial statements
accuracy and completeness of the accounting records, 6. A company’s internal financial control with reference to
and the timely preparation of reliable financial information, financial statements is a process designed to provide
as required under the Act. reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements
Auditor’s Responsibility for external purposes in accordance with generally
3. Our responsibility is to express an opinion on the accepted accounting principles. A company’s internal
Company’s internal financial controls with reference to financial control with reference to financial statements
financial statements based on our audit. We conducted includes those policies and procedures that (1) pertain
our audit in accordance with the Guidance Note issued to the maintenance of records that, in reasonable
by the ICAI and the Standards on Auditing deemed to detail, accurately and fairly reflect the transactions and
be prescribed under Section 143(10) of the Companies dispositions of the assets of the company; (2) provide
Act, 2013, to the extent applicable to an audit of internal reasonable assurance that transactions are recorded as

Consolidated
necessary to permit preparation of financial statements may become inadequate because of changes in conditions, or
in accordance with generally accepted accounting that the degree of compliance with the policies or procedures
principles, and that receipts and expenditures of the may deteriorate.
company are being made only in accordance with
authorisations of management and directors of the Opinion
company; and (3) provide reasonable assurance 8. In our opinion, the Holding Company has, in all material
regarding prevention or timely detection of unauthorised respects, an adequate internal financial controls system
acquisition, use, or disposition of the company’s with reference to financial statements and such internal
assets that could have a material effect on the financial financial controls with reference to financial statements
statements. were operating effectively as at March 31, 2023, based
on the internal control over financial reporting criteria
Inherent Limitations of Internal Financial Controls with established by the Company considering the essential
reference to financial statements components of internal control stated in the Guidance
Note issued by the ICAI.
7. Because of the inherent limitations of internal financial
controls with reference to financial statements, including the For Price Waterhouse & Co Chartered Accountants LLP
possibility of collusion or improper management override of Firm Registration Number: 304026E/ E-300009
controls, material misstatements due to error or fraud may
occur and not be detected. Also, projections of any evaluation Sougata Mukherjee
of the internal financial controls with reference to financial Partner
statements to future periods are subject to the risk that the Place: Gurugram Membership Number: 057084
internal financial control with reference to financial statements Date: May 03, 2023 UDIN: 23057084BGYFRC1110

Consolidated Balance Sheet
as at March 31, 2023
(` in crores)
As at As at
Notes
March 31, 2023 March 31, 2022
ASSETS
1 Non-current assets
Property, plant and equipment 3 2,227.85 2,021.45
Capital work in progress 3 163.42 56.75
Goodwill 4 310.47 310.47
Other intangible assets 4 1,082.33 1,101.69
Intangible assets under development 4 2.99 0.46
Financial assets 6
(i) Investments 6(A) 20.00 272.68
(iii) Other financial assets 6(C) 149.08 42.18
Other non-current assets 7 78.94 42.93
Non Current tax assets (net) 8 29.03 26.54
Total non current assets 4,091.27 3,916.65
2 Current assets
Inventories 9 3,708.58 2,968.08
Financial assets 10
(i) Investments 10(A) 180.87 153.42
(iii) Cash and cash equivalents 10(C) 465.16 775.84
(iv) Bank balances other than (iii) above 10(D) 1,405.01 1,772.14
(v) Other financial assets 10(E) 116.89 29.89
Other current assets 11 178.52 113.65
Total current assets 7,055.64 6,605.83
Assets classified as held for sale 12 10.53 0.73
7,066.17 6,606.56
Total assets 11,157.44 10,523.21
EQUITY AND LIABILITIES
1 Equity 13
Equity share capital 13(A) 62.65 62.63
Other equity 13(B) 6,562.80 5,940.26
Total equity 6,625.45 6,002.89
2 Liabilities
Non-current liabilities
(iii) Other financial liabilities 14(C) 7.21 3.96
Provisions 15 136.72 76.25
Deferred tax liabilities (Net) 16 361.51 350.62
Total non current liabilities 696.45 887.21
Current liabilities
(iii) Trade payables 17(C)
a) Total outstanding dues of micro enterprises and small enterprises; and 154.96 114.08
b) Total outstanding dues of creditors other than micro enterprises and 2,488.23 2,265.94
small enterprises
(iv) Other financial liabilities 17(D) 624.85 525.48
Other current liabilities 20 139.72 189.51
Provisions 18 274.91 253.23
Current tax liabilities (net) 19 32.26 62.83
Total current liabilities 3,835.54 3,633.11
Total equity and liabilities 11,157.44 10,523.21
Commitments and contingencies 30A
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Consolidated
Consolidated Statement of Profit and Loss

(` in crores)
Notes
March 31, 2023 March 31, 2022
I INCOME
Revenue from operations 21 16,910.73 13,938.48
Other income 22 177.71 160.44
Total Income 17,088.44 14,098.92
II EXPENSES
Cost of raw materials and components consumed 23 9,317.92 7,770.07
Purchase of traded goods 24 3,028.75 1,871.40
Changes in inventories of finished goods, traded goods and work in progress 25 (641.20) (219.48)
Employee benefits expense 26 1,268.32 1,020.69
Finance costs 27 33.62 53.41
Depreciation and amortization expenses 28 296.17 260.89
Other expenses 29 2,321.89 1,732.99
Net impairment losses on financial and contract assets 29A 15.91 2.39
Total expenses 15,641.38 12,492.36
III Profit before exceptional items and tax 1,447.06 1,606.56
IV Exceptional Items
Loss due to fire 112.52 -
Insurance claim receivable (112.52) -
V Income tax expense 16
Current tax 364.44 398.58
Deferred tax {refer note 16(d)} 10.89 11.51
Total tax expense 375.33 410.09
VI Profit for the year 1,071.73 1,196.47
VII Other comprehensive income
Items that will not be reclassified to profit or loss
i) Re-measurement gain/(loss) on defined benefit plans {refer note 31(3)} (10.25) 7.38
ii) Income tax effect on above {refer note no 16(b)} 2.58 (1.86)
Items will be reclassified to profit or loss in subsequent periods
(i) Exchange difference on translation of financial statements of foreign operations (0.06) 0.66
(ii) Income tax effect on others -
(0.06) 0.66
VIII Total comprehensive income for the year, net of tax 1,064.00 1,202.65
Profit for the year attributable to
Equity holders of the parent company 1,071.73 1,196.47
Non controlling interests -
1,071.73 1,196.47
Other comprehensive income/(loss) for the year attributable to
Equity holders of the parent company (7.73) 6.18
Non controlling interests -
(7.73) 6.18
Total comprehensive income for the year attributable to
Equity holders of the parent company 1,064.00 1,202.65
Non controlling interests - -
1,064.00 1,202.65
IX Earnings per equity share (EPS) {refer note no. 31 (11)}
(nominal value of share ` 1/-)
a) Basic EPS (`) 17.11 19.11
b) Diluted EPS (`) 17.11 19.10
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Consolidated Statement of Changes in Equity
A) Equity Share Capital

(` in crores)
Particulars Notes Numbers Amount
As at April 1, 2021 13(A) 626,013,006 62.60
Add: Exercise of employee stock purchase plan - proceeds received 290,061 0.03
As at March 31, 2022 626,303,067 62.63
Add: Exercise of employee stock purchase plan - proceeds received 206,671 0.02
As at March 31, 2023 626,509,738 62.65
B) Other Equity
(` in crores)
Particulars Attributable to equity shareholders of parent company
Reserves and surplus Items of OCI
Notes Capital Securities General Share Retained Foreign currency Total
reserve premium reserve options earnings translation
outstanding reserve
account
As at April 1, 2021 7.63 90.38 722.72 0.64 4,292.09 0.24 5,113.70
Profit for the year {13(B)e} - - - - 1,196.47 1,196.47
Other comprehensive income
for the year
Re-measurement gains/(losses) on defined - - - - 5.52 5.52
Exchange difference on translation of - - - - - 0.66 0.66
financial statements of foreign operations
Total comprehensive income - - - - 1,201.99 0.66 1,202.65
for the year
Transactions with owners in their
capacity as owners:
Final and interim dividend paid {13(B)e} - - - - (407.10) (407.10)
during the year
Equity shares issued under employee {13(B)b} - 31.12 - - - 31.12
stock purchase plan
Options recognised during the year {13(B)c} - - - 1.15 - 1.15
Options vested and exercised {13(B)c} - - - (1.26) - (1.26)
during the year
As at March 31, 2022 7.63 121.50 722.72 0.53 5,086.98 0.90 5,940.26
Profit for the year {13(B)e} - - - - 1,071.73 1,071.73

Other comprehensive income
for the year
Re-measurement gains/(losses) on - - - - (7.67) (0.06) (7.73)
defined benefit plans net of tax
Total Comprehensive income - - - - 1,064.06 (0.06) 1,064.00
for the year

Consolidated
Consolidated Statement of Changes in Equity

(` in crores)
Particulars Attributable to equity shareholders of parent company
Reserves and surplus Items of OCI
Notes Capital Securities General Share Retained Foreign currency Total
reserve premium reserve options earnings translation
outstanding reserve
account
Transaction with owners in their
capacity as owners:
Final and interim dividend paid {13(B)e} - - - - (469.88) (469.88)
during the year
Equity shares issued under employee {13(B)b} - 26.65 - 3.23 - 29.88
stock purchase plan
Options vested and exercised {13(B)c} - - - (1.46) - (1.46)
during the year
As at March 31, 2023 7.63 148.15 722.72 2.30 5,681.16 0.84 6,562.80

DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Consolidated Statement of Cash Flows
(` in crores)
March 31, 2023 March 31, 2022
A. CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for
Depreciation and amortisation expense 296.17 260.89
Loss/(gain) on disposal of property, plant and equipment (net) 0.14 1.43
Unrealized foreign exchange loss/(gain) (net) (6.25) (5.55)
Exchange difference on translation of financial statements (0.06) 0.66
foreign operatons
Net impairment losses on financial and contract assets 15.91 2.39
Discounting of long term warranty provision (12.11) (5.79)
Interest income on bank deposits and investment (123.24) (104.45)
Finance costs 33.44 53.24
Liabilities no longer required written back (0.23) (0.15)
Operating Profit before working capital changes 1,653.23 1,819.13
Change in operating assets and liabilities
(Increase)/Decrease in trade receivables (224.65) (213.30)
(Increase)/Decrease in contract assets 13.14 4.52
(Increase)/Decrease in other financial assets (86.35) 14.91
(Increase)/Decrease in non current assets 4.47 0.18
(Increase)/Decrease in other current assets (64.87) 1.34
(Increase)/Decrease in inventories (740.50) (348.19)
Increase/(Decrease) in trade payables 272.74 787.65
Increase/(Decrease) in financial liabilities 74.73 (58.84)
Increase/(Decrease) in other current liabilities (52.52) 107.47
Increase/(Decrease) in contract liabilities 29.23 7.57
Increase/(Decrease) in provisions 78.22 20.43
Cash generated from operations 956.87 2,142.87
Income tax paid (net of refunds) (391.94) (414.85)
Net cash inflow from operating Activities (A) 564.93 1,728.02
B. CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant and equipment and intangible assets (587.79) (258.32)
Receipt of grant related to assets - 3.72
Proceeds from sale of property, plant and equipment 2.27 5.56
Investment in fixed deposits with bank and financial institution 520.43 (605.13)
Payment for Investments (20.00) -
Interest on fixed deposit and investment received 120.13 95.61
Net Cash inflow/(outflow) used in Investing Activities (B) 35.04 (758.56)

Consolidated
Consolidated Statement of Cash Flows

(` in crores)
March 31, 2023 March 31, 2022
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 - securities 26.65 31.12
premium received
Payment of principal portion of lease liabilities (44.28) (34.54)
Payment of interest portion of lease liabilities (18.35) (14.89)
Proceeds from long term borrowing - 0.04
Repayment of long term borrowings (393.69) (97.35)
Interest paid (6.98) (24.46)
Dividend paid to company's shareholder (470.30) (407.29)
Net cash inflow/(outflow) from Financing Activities (C) (906.93) (547.34)
Net increase/(decrease) in cash and cash equivalents (A+B+C) (306.96) 422.12
Cash and cash equivalents at the beginning of the year 775.84 354.62
Effect of foreign exchange rate changes on cash and cash equivalents held in (3.73) (0.90)
foreign currency
Cash and cash equivalents at the end of the year 465.15 775.84
Notes:
1 The above statement of cash flows 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, 2023 March 31, 2022
Cash and cash equivalents
Current accounts 71.54 36.86
Deposits with a original maturity of less than three months 363.57 624.72
465.16 775.84
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

Notes to Consolidated Financial Statements
1. Corporate Information 2.01 Basis of preparation of Consolidated Financial

Havells India Limited (‘the Group’) is a public limited Statements
Group domiciled in India and incorporated on August These Consolidated financial statements of the Group
08, 1983 under the provisions of the Companies Act, have been prepared in accordance with Indian Accounting
1956 having its registered office at 904, 9th Floor, Surya Standards (Ind AS) notified under the Companies (Indian
Kiran Building, K.G. Marg, Connaught Place, New Accounting Standards) Rules, 2015 (as amended from
Delhi-110001. The Group is listed on BSE Limited and time to time) and presentation requirements of Division II of
National Stock Exchange of India Limited. The CIN of the Schedule III to the Companies Act, 2013, (Ind AS compliant
Group is L31900DL1983PLC016304 Schedule III). These consolidated financial statements are
presented in INR and all values are rounded to the nearest
The Group is consumer electrical/electronics and power crore (INR 0,000,000), except when otherwise indicated.
distribution equipment manufacturer with products
ranging from Industrial and Domestic Circuit Protection The financial statements have been prepared on a
Switchgears, Cables, Motors, Pumps, Solar Products, historical cost convention, except for the following assets
Fans, Power Capacitors, LED Lamps and Luminaries and liabilities:
for Domestic, Commercial and Industrial applications, i) Certain financial assets and liabilities that is
Modular Switches, Water Heaters, Coolers and Domestic measured at fair value
Appliances, Personal Grooming, Air Purifier, Water
ii) Assets held for sale-measured at fair value less
Purifier, Air conditioner, Television, Washing machine
cost to sell
and Refrigerator covering the entire range of household,
commercial and industrial electrical needs. iii) Defined benefit plans-plan assets measured at fair
value
The Group’s manufacturing facilities are located at iv) Share based payments
Faridabad in Haryana, Alwar, Ghiloth and Neemrana in
Rajasthan, Haridwar in Uttarakhand, Sahibabad in Uttar 2.02 Current versus non-current classification
Pradesh, Baddi in Himachal Pradesh, Sri City in Andhra
The Group presents assets and liabilities in the balance
Pradesh. The research and development facilities are
sheet based on current/non- current classification. An
located at Noida (Uttar Pradesh), Bangalore and Ghiloth
asset is treated as current when it is:
(Rajasthan)
- Expected to be realized or intended to be sold or
These consolidated financial statements were approved consumed in normal operating cycle
for issue in accordance with a resolution of the directors - Held primarily for purpose of trading
on May 03, 2023.
- Expected to be realized within twelve months after
The Group along with its subsidiaries has been the reporting period, or
collectively hereinafter referred to as “the Group”. These - cash or cash equivalent unless restricted from
consolidated financial statements were approved for being exchanged or used to settle a liability for at
issue in accordance with a resolution of the directors on least twelve months after the reporting period
May 03, 2023. All other assets are classified as non-current.
2 Summary of significant accounting policies A liability is current when:

This note provides a list of the significant accounting
- It is expected to be settled in normal operating
policies adopted in the preparation of these Indian
cycle
Accounting Standards (Ind-AS) CONSOLIDATED
financial statements. These policies have been - It is held primarily for purpose of trading
consistently applied to all the years except where newly - It is due to be settled within twelve months after the
issued accounting standard is initially adopted. reporting period, or
These consolidated financial statement are separate - There is no unconditional right to defer the
financial statements including Havells Employees Welfare settlement of the liability for at least twelve months
Trust prepared in accordance with Ind AS-27 “Separate after the reporting period
Financial Statements”. All other liabilities are classified as non current.

Consolidated

Deferred tax assets and deferred tax liabilities are consolidated financial statements from the date the
classified as non- current assets and liabilities. Group gains control until the date the Group ceases to
control the subsidiary.
The operating cycle is the time between the acquisition
of assets for processing and their realization in cash and Consolidated financial statements are prepared using
cash equivalents. the Group has identified twelve months uniform accounting policies for like transactions and other
as its operating cycle. events in similar circumstances. If a member of the Group
uses accounting policies other than those adopted in the
2.03 Basis of Consolidation consolidated financial statements for like transactions and
The consolidated financial statements comprises the events in similar circumstances, appropriate adjustments
financial statement of the Havells India Limited (‘the are made to that Group member’s financial statements
Parent company’) and subsidiaries (collectively “the in preparing the consolidated financial statements to
Group) as at March 31, 2022. Control is achieved when ensure conformity with the Group’s accounting policies.
the Group is exposed, or has rights, to variable returns
from its involvement with the investee and has the The financial statements of all entities used for the
ability to affect those returns through its power over the purpose of consolidation are drawn up to same reporting
investee. Specifically, the Group controls an investee if date as that of the parent company, i.e., year ended on
and only if the Group has: March 31. When the end of the reporting period of the
parent company is different from that of a subsidiary,
(i) Power over the investee (i.e. existing rights that the subsidiary prepares, for consolidation purposes,
give it the current ability to direct the relevant additional financial information as of the same date as the
activities of the investee) financial statements of the parent company to enable the
(ii) Exposure, or rights, to variable returns from its parent company to consolidate the financial information
involvement with the investee, and of the subsidiary, unless it is impracticable to do so or
there are no significant transaction or event between the
(iii) The ability to use its power over the investee to
date of those financial statement and date of financial
affect its returns.
statement of parent company.
Generally, there is a presumption that a majority of voting

2.04 Consolidation Procedure:
rights result in control. To support this presumption and
when the Group has less than a majority of the voting (A) Subsidiaries:
or similar rights of an investee, the Group considers all a) Combine like items of assets, liabilities, equity,
relevant facts and circumstances in assessing whether it income, expenses and cash flows of the parent with
has power over an investee, including: those of its subsidiaries. For this purpose, income
and expenses of the subsidiary are based on the
(i) The contractual arrangement with the other vote
amounts of the assets and liabilities recognised
holders of the investee
in the consolidated financial statements at the
(ii) Rights arising from other contractual arrangements acquisition date.
(iii) The Group’s voting rights and potential voting

b) Offset (eliminate) the carrying amount of the
rights
parent’s investment in each subsidiary and the
(iv) The size of the Group’s holding of voting rights parent’s portion of equity of each subsidiary.
relative to the size and dispersion of the holdings Business combinations policy explains how to
of the other voting rights holders. account for any related goodwill.
The Group re-assesses whether or not it controls an c) Eliminate in full intragroup assets and liabilities,
investee if facts and circumstances indicate that there equity, income, expenses and cash flows
are changes to one or more of the three elements of relating to transactions between entities of the
control. Consolidation of a subsidiary begins when the group (profits or losses resulting from intragroup
Group obtains control over the subsidiary and ceases transactions that are recognised in assets, such
when the Group loses control of the subsidiary. Assets, as inventory and fixed assets, are eliminated in
liabilities, income and expenses of a subsidiary acquired full). Intragroup losses may indicate an impairment
or disposed of during the year are included in the that requires recognition in the consolidated

financial statements. Ind AS - 12 “Income Taxes” the relevant activities require unanimous consent of the
applies to temporary differences that arise from parties sharing control. The considerations made in
the elimination of profits and losses resulting from determining whether significant influence or joint control
intragroup transactions. are similar to those necessary to determine control over
the subsidiaries.
Profit or loss and each component of other comprehensive
income (OCI) are attributed to the equity holders of the The Group’s investments in its associate and joint venture
parent of the Group and to the non-controlling interests, are accounted for using the equity method. Under the
even if this results in the non-controlling interests having a equity method, the investment in an associate or a joint
deficit balance. When necessary, adjustments are made venture is initially recognised at cost. The carrying amount
to the financial statements of subsidiaries to bring their of the investment is adjusted to recognise changes in
accounting policies into line with the Group’s accounting the Group’s share of net assets of the associate or joint
policies. All intra-group assets and liabilities, equity, venture since the acquisition date. Goodwill relating to
income, expenses and cash flows relating to transactions the associate or joint venture is included in the carrying
between members of the Group are eliminated in full on amount of the investment and is not tested for impairment
consolidation. individually.
A change in the ownership interest of a subsidiary, without The statement of profit and loss reflects the Group’s
a loss of control, is accounted for as an equity transaction. share of the results of operations of the associate or
If the Group loses control over a subsidiary, it: joint venture. Any change in OCI of those investees
(i) Derecognises the assets (including goodwill) and is presented as part of the Group’s OCI. In addition,
liabilities of the subsidiary when there has been a change recognised directly in
the equity of the associate or joint venture, the Group
(ii) Derecognises the carrying amount of any non- recognises its share of any changes, when applicable,
controlling interests in the statement of changes in equity. Unrealised gains
(iii) Derecognises the cumulative translation differences and losses resulting from transactions between the
recorded in equity Group and the associate or joint venture are eliminated
to the extent of the interest in the associate or joint
(iv) Recognises the fair value of the consideration
venture.
received
(v) Recognises the fair value of any investment If Group’s share of losses of an associate or a joint
retained venture equals or exceeds its interest in the associate or
joint venture (which includes any long term interest that,
(vi) Recognises any surplus or deficit in profit or loss
in substance, form part of the Group’s net investment in
(vii) Reclassifies the parent’s share of components the associate or joint venture), the Group discontinues
previously recognised in OCI to profit or loss or recognising its share of further losses. Additional losses
retained earnings, as appropriate, as would be are recognised only to the extent that the Group has
required if the Group had directly disposed of the incurred legal or constructive obligations or made
related assets or liabilities. payments on behalf of the associate or joint venture.
If the associate or joint venture subsequently reports
(B) Investment in associates and joint ventures profits, the Group resumes recognising its share of those
An associate is an entity over which the Group has profits only after its share of the profits equals the share
significant influence. Significant influence is the power to of losses not recognised.
participate in the financial and operating policy decisions
of the investee, but is not control or joint control over The aggregate of the Group’s share of profit or loss of an
those policies. associate and a joint venture is shown on the face of the
statement of profit and loss.
A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement The financial statements of the associate or joint venture
have rights to the net assets of the joint venture. Joint are prepared for the same reporting period as the Group.
control is the contractually agreed sharing of control of When necessary, adjustments are made to bring the
an arrangement, which exists only when decisions about accounting policies in line with those of the Group.

Consolidated

After application of the equity method, the Group outflow of resources embodying economic benefits is
determines whether it is necessary to recognise an not probable. However, the following assets and liabilities
impairment loss on its investment in its associate or joint acquired in a business combination are measured at the
venture. At each reporting date, the Group determines basis indicated as mentioned hereinafter
whether there is objective evidence that the investment
(i) Deferred tax assets or liabilities, and the assets or
in the associate or joint venture is impaired. If there is
liabilities related to employee benefit arrangements
such evidence, the Group calculates the amount of
are recognised and measured in accordance with
impairment as the difference between the recoverable
Ind AS 12 “Income Tax” and Ind AS 19 “Employee
amount of the associate or joint venture and its carrying
Benefits” respectively.
value, and then recognises the loss as ‘Share of profit of
an associate and a joint venture’ in the statement of profit (ii) Potential tax effects of temporary differences
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 or acquisition are accounted in accordance with Ind
joint control over the joint venture, the Group measures AS 12.
and recognises any retained investment at its fair (iii) Liabilities or equity instruments related to share
value. Any difference between the carrying amount of based payment arrangements of the acquiree
the associate or joint venture upon loss of significant or share – based payments arrangements of
influence or joint control and the fair value of the retained the Group entered into to replace share-based
investment less cost to sell is recognised in profit or loss. payment arrangements of the acquiree are
measured in accordance with Ind AS 102 “Share-
The Group discontinue the use of equity method from based Payments” at the acquisition date.
the date the investment is classified as held for sale in
accordance with Ind AS 105 - Non-current Assets Held (iv) Assets (or disposal groups) that are classified as
for Sale and Discontinued Operations and measures the held for sale in accordance with Ind AS 105 “Non-
interest in associate and joint venture held for sale at the current Assets Held for Sale” and Discontinued
lower of its carrying amount and fair value less cost to Operations are measured in accordance with that
sell. standard.
(v) Reacquired rights are measured at a value
(C) Business combination and goodwill determined on the basis of the remaining
Business combinations other than those under contractual term of the related contract. Such
common control transactions are accounted for using valuation does not consider potential renewal of
the acquisition method. The cost of an acquisition the reacquired right.
is measured as the aggregate of the consideration
transferred measured at acquisition date fair value When the Group acquires a business, it assesses the
and the amount of any non-controlling interests in the financial assets and liabilities assumed for appropriate
acquiree. For each business combination, the Group classification and designation in accordance with
elects whether to measure the non-controlling interests the contractual terms, economic circumstances and
in the acquiree at fair value or at the proportionate share pertinent conditions as at the acquisition date. This
of the acquiree’s identifiable net assets. In respect to includes the separation of embedded derivatives in host
the business combination for acquisition of subsidiary, contracts by the acquiree.
the Group has opted to measure the non-controlling
interests in the acquiree at the proportionate share of If the business combination is achieved in stages, any
the acquiree’s identifiable net assets. Acquisition-related previously held equity interest is re-measured at its
costs are expensed as incurred. acquisition date fair value and any resulting gain or loss
is recognised in profit or loss or OCI, as appropriate.
At the acquisition date, the identifiable assets
acquired and the liabilities assumed are recognised (D) Change in ownership interest
at their acquisition date fair values. For this purpose, The Group treats transaction with non-controlling
the liabilities assumed include contingent liabilities interests that do not result in a loss of control as
representing present obligation and they are measured transaction with the equity owners of the Group. A change
at their acquisition fair values irrespective of the fact that in ownership interest results in adjustment between the

carrying amounts of the controlling and non-controlling The residual values, useful lives and methods of
interest to reflect their relative interest in the subsidiary. depreciation of property, plant and equipment are
Any difference between the amount of the adjustment to reviewed at each financial year end and adjusted
non-controlling interests and any consideration paid or prospectively, if appropriate.
received is recognised within equity.
Depreciation on property, plant and equipment is
2.05 Property, plant and equipment calculated on prorata basis on straight-line method using
Freehold Land is carried at historical cost. All other items the useful lives of the assets estimated by management.
of Property, Plant and equipment are stated at cost, less The useful life is as follows:
accumulated depreciation and accumulated impairment
losses, if any. Capital work in progress is stated at cost, Assets Useful life (in years)
net of accumulated impairment loss, if any. The historical Building 30 and 60
cost comprises of purchase price, taxes, duties, freight Plant and Equipment 15
and other incidental expenses directly attributable and Moulds and Dies 6
related to acquisition and installation of the concerned Furniture and Fixtures 10
assets and are further adjusted by the amount of input Vehicles 8 and 10
tax credit availed wherever applicable.
R & D Equipment 5 and15
Office Equipment 3 and 5
Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long- Mobile Phones 3
term construction projects if the recognition criteria are Electric Fans and Installations 10
met. When significant parts of plant and equipment Computers 3
are required to be replaced at intervals, the Group Laptops 4
depreciates them separately based on their specific
The useful lives of all the assets except moulds and
useful lives. Likewise, when a major inspection is
dies, mobile phones and laptops have been determined
performed, its cost is recognised in the carrying amount
as those specified by part ‘C’ of Schedule II to the
of the plant and equipment as a replacement if the
Companies Act, 2013. In respect of moulds and dies
recognition criteria are satisfied. All other repair and
and mobile phones, useful lives are lower than those
maintenance costs are recognised in profit or loss as
specified by schedule II to the Companies Act 2013
incurred. The present value of the expected cost for the
and are depreciated over the estimated useful lives of
decommissioning of an asset after its use is included in
6 years, 3 years respectively, in respect of laptop useful
the cost of the respective asset if the recognition criteria
life is more than those specified by schedule II to the
for a provision are met.
Group Act 2013 and are depreciated over the estimated
useful life of 4 years, in order to reflect the actual usage
Subsequent costs are included in asset’s carrying amount
of assets. The residual values are not more than 5% of
or recognised as separate assets, as appropriate,
the original cost of the assets. The asset’s residual values
only when it is probable that future economic benefit
and useful lives are reviewed, and adjusted if appropriate.
associated with the item will flow to the Group and the
cost of item can be measured reliably.
Lease hold improvements are depreciated on straight
line basis over shorter of the asset’s useful life and their
An item of property, plant and equipment and any
lease term unless the entity expects to use the asset
significant part initially recognised is derecognized
beyond the lease term.
upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss
Leasehold land is amortized on a straight line basis over
arising on derecognition of the asset (calculated as the
the unexpired period of their respective lease ranging
difference between the net disposal proceeds and the
from 90-99 years.
carrying amount of the asset) is included in the income
statement when the asset is derecognised.
2.06 Intangible assets
Capital work- in- progress includes cost of property, plant Separately acquired intangible assets
and equipment under installation/under development as Intangible assets acquired separately are measured
at the balance sheet date. on initial recognition at cost. Cost of intangible assets

Consolidated

acquired in business combination is their fair value at Assets Useful life (in years)
the date of acquisition. Following initial recognition, Computer Software 6
intangible assets are carried at cost less accumulated R&D Software 6
amortization and accumulated impairment losses, if any. Distributor/Dealer Network 8
Internally generated intangibles, excluding capitalized Non-Compete Fee 7
development cost, are not capitalized and the related Brand and Trademarks Indefinite
expenditure is reflected in statement of Profit and Loss
in the period in which the expenditure is incurred. Cost Research and development cost
comprises the purchase price and any attributable cost Research costs are expensed as incurred. Development
of bringing the asset to its working condition for its expenditure incurred on an individual project is recognized
intended use. as an intangible asset when the Group can demonstrate
all the following:
The useful lives of intangible assets are assessed as
i) The technical feasibility of completing the intangible
either finite or indefinite. Intangible assets with finite
asset so that it will be available for use or sale;
lives are amortized over their useful lives and assessed
for impairment whenever there is an indication that the ii) Its intention to complete the asset;
intangible asset may be impaired. The amortization
iii) Its ability to use or sale the asset;
period and the amortization method for an intangible
asset with a finite useful life is reviewed at least at the end iv) How the asset will generate future economic
of each reporting period. Changes in the expected useful benefits;
life or the expected pattern of consumption of future
v) The availability of adequate resources to complete
economic benefits embodied in the asset is accounted
the development and to use or sale the asset; and
for by changing the amortization period or method, as
appropriate, and are treated as changes in accounting vi) The ability to measure reliably the expenditure
estimates. The amortization expense on intangible attributable to the intangible asset during
assets with finite lives is recognized in the statement of development.
profit and loss.
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 Group has assessed indefinite life for such brand of profit and loss. During the period of development, the
considering the expected usage, expected investment
asset is tested for impairment annually.
on brand, business forecast and challenges to
establish a premium electronic segment. These are Trademarks
carried at historical cost and tested for impairment
Brand and Trademarks acquired in business combination
annually.
are initially recognised at fair value at the date of acquisition.
An intangible asset is derecognised upon disposal or Following initial recognition, brand and trademark are
when no future economic benefits are expected from its carried at the above recognised value less accumulated
use or disposal. Gains or losses arising from disposal amortization and accumulated impairment losses, if any.
of the intangible assets are measured as the difference These Brand and trademarks have been in existence for
between the net disposal proceeds and the carrying considerable period and Group intends to continue use
amount of the asset and are recognized in the statement this intangible assets. Consequently it is believed that
of profit and loss when the assets are disposed off. they have an indefinite life and are not amortised. Instead
impairment testing is performed annually and whenever a
Intangible assets with finite useful life are amortized on a triggering event has occurred to determine whether the
straight line basis over their estimated useful life as under carrying value exceeds the recoverable amount.

Distributor/Dealer Network of, the goodwill associated with the disposed operation
Distributor/Dealer Network acquired in business is included in the carrying amount of the operation
combination are initially recognised at fair value at the date when determining the gain or loss on disposal. Goodwill
of acquisition. Following initial recognition, Distributor/ disposed in these circumstances is measured based
Dealer Network are carried at the above recognised on the relative values of the disposed operation and the
value less accumulated amortization and accumulated portion of the cash-generating unit retained.
impairment losses, if any. They are amortised on a
straight line basis over their estimated useful life of 8 2.07 Impairment of non- financial assets
years assessed by the management. The Group assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If
Goodwill any indication exists, or when annual impairment testing
Goodwill is initially measured at cost, being the excess of for an asset is required, the Group estimates the asset’s
the aggregate of the consideration transferred over the recoverable amount. An asset’s recoverable amount is
fair value of net identifiable assets acquired and liabilities the higher of an asset’s or cash-generating unit’s (CGU)
assumed. If the fair value of the net assets acquired is in fair value less costs of disposal and its value in use. The
excess of the aggregate consideration transferred, the recoverable amount is determined for an individual asset,
Group re-assesses whether it has correctly identified all unless the asset does not generate cash inflows that are
of the assets acquired and all of the liabilities assumed largely independent of those from other assets or groups
and reviews the procedures used to measure the of assets. When the carrying amount of an asset or CGU
amounts to be recognised at the acquisition date. If the exceeds its recoverable amount, the asset is considered
reassessment still results in an excess of the fair value impaired and is written down to its recoverable amount.
of net assets acquired over the aggregate consideration
transferred, then the gain is recognised in other In assessing value in use, the estimated future cash flows
comprehensive income and accumulated in equity as are discounted to their present value using a pre-tax
capital reserve. However, if there is no clear evidence of discount rate that reflects current market assessments of
bargain purchase, the entity recognizes the gain directly the time value of money and the risks specific to the asset.
in equity as capital reserve, without routing the same In determining fair value less costs of disposal, recent
through other comprehensive income. market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation
After initial recognition, goodwill is measured at cost model is used. These calculations are corroborated by
less any accumulated impairment losses, if any. For valuation multiples, quoted share prices for publicly traded
the purpose of impairment testing, goodwill acquired companies or other available fair value indicators.
in a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units The Group bases its impairment calculation on detailed
that are expected to benefit from the combination, budgets and forecast calculations, which are prepared
irrespective of whether other assets or liabilities of the separately for each of the Group’s CGUs to which the
acquire are assigned to those units. individual assets are allocated. These budgets and
forecast calculations generally cover a period of five
A cash generating unit to which goodwill has been years. For longer periods, a long-term growth rate is
allocated is tested for impairment annually or earlier, when calculated and applied to project future cash flows
there is an indication that the unit may be impaired. If the after the fifth year. To estimate cash flow projections
recoverable amount of the cash generating unit is less beyond periods covered by the most recent budgets/
than its carrying amount, the impairment loss is allocated forecasts, the Group extrapolates cash flow projections
first to reduce the carrying amount of any goodwill in the budget using a steady or declining growth rate
allocated to the unit and then to the other assets of the for subsequent years, unless an increasing rate can be
unit pro rata based on the carrying amount of each asset justified. In any case, this growth rate does not exceed
in the unit. Any impairment loss for goodwill is recognised the long-term average growth rate for the products,
in profit or loss. An impairment loss recognised for industries, or country or countries in which the Group
goodwill is not reversed in subsequent periods. operates, or for the market in which the asset is used.
Where goodwill has been allocated to a cash-generating Impairment losses of continuing operations, including
unit and part of the operation within that unit is disposed impairment on inventories, are recognised in the statement

Consolidated

of profit and loss, except for properties previously revalued The classification of financial assets at initial recognition
with the revaluation surplus taken to OCI. For such depends on the financial asset’s contractual cash flow
properties, the impairment is recognised in OCI up to the characteristics and the Group’s business model for
amount of any previous revaluation surplus. managing them
For assets excluding goodwill and intangible assets having Initial recognition measurement
indefinite life, an assessment is made at each reporting With the exception of trade receivables that do not
date to determine whether there is an indication that contain a significant financing component or for which
previously recognised impairment losses no longer exist the Group has applied the practical expedient, the Group
or have decreased. If such indication exists, the Group initially measures a financial asset at its fair value plus,
estimates the asset’s or CGU’s recoverable amount. A in the case of a financial asset not at fair value through
previously recognised impairment loss is reversed only profit or loss, transaction costs.
if there has been a change in the assumptions used to
determine the asset’s recoverable amount since the last Trade receivables that do not contain a significant
impairment loss was recognised. The reversal is limited financing component or for which the Group has applied
so that the carrying amount of the asset does not exceed the practical expedient are measured at the transaction
its recoverable amount, nor exceed the carrying amount price determined under Ind AS 115. Refer to the
that would have been determined, net of depreciation, accounting policies in section ‘Revenue from contracts
had no impairment loss been recognised for the asset in with customers’.
prior years. Such reversal is recognised in the statement
of profit and loss unless the asset is carried at a revalued In order for a financial asset to be classified and
amount, in which case, the reversal is treated as a measured at amortised cost or fair value through OCI, it
revaluation increase. needs to give rise to cash flows that are ‘solely payments
of principal and interest (SPPI)’ on the principal amount
Goodwill is tested for impairment annually and when outstanding. This assessment is referred to as the SPPI
circumstances indicate that the carrying value may test and is performed at an instrument level. Financial
be impaired. Impairment is determined for goodwill by assets with cash flows that are not SPPI are classified and
assessing the recoverable amount of each CGU (or measured at fair value through profit or loss, irrespective
group of CGUs) to which the goodwill relates. When the of the business model.
recoverable amount of the CGU is less than its carrying
The Group’s business model for managing financial assets
amount, an impairment loss is recognised. Impairment
refers to how it manages its financial assets in order to
losses relating to goodwill cannot be reversed in future
generate cash flows. The business model determines
periods.
whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both.
Intangible assets with indefinite useful lives are tested for
impairment annually as at March 31 at the CGU level, as
Financial assets classified and measured at amortised
appropriate, and when circumstances indicate that the
cost are held within a business model with the objective
carrying value may be impaired.
to hold financial assets in order to collect contractual
cash flows while financial assets classified and measured
2.08 Financial instruments
at fair value through OCI are held within a business model
A financial instrument is any contract that gives rise to with the objective of both holding to collect contractual
a financial asset of one entity and a financial liability or cash flows and selling.
equity instrument of another entity.
Subsequent measurement
(i) Financial Assets For purposes of subsequent measurement financial
The Group classifies its financial assets in the following assets are classified in following categories:
measurement categories:
- Financial assets at amortised cost (debt
- Those to be measured subsequently at fair value instruments)
(either through other comprehensive income, or
- Financial assets at fair value through other
through profit or loss)
comprehensive income (FVTOCI) with recycling of
- Those measured at amortized cost cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through Debt instrument included within the FVTOCI category are
OCI with no recycling of cumulative gains and measured initially as well as at each reporting date at fair
losses upon derecognition (equity instruments) value. Fair value movements are recognized in the other
comprehensive income (OCI), except for the recognition
- Financial assets at fair value through profit or loss
of interest income, impairment gains or losses and
foreign exchange gains or losses which are recognized
Financial assets at amortised cost (debt instruments)
in statement of profit and loss and computed in the same
A ‘financial asset’ is measured at the amortised cost if manner as for financial assets measured at amortised
both the following conditions are met: cost. The remaining fair value changes are recognised
a) Business Model Test: The objective is to hold in OCI. Upon derecognition, the cumulative fair value
the financial asset to collect the contractual cash changes recognised in OCI is reclassified from the equity
flows (rather than to sell the instrument prior to its to profit or loss.
contractual maturity to realize its fair value changes)
and; Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are
b) Cash flow characteristics test: The contractual
carried in the balance sheet at fair value with net changes
terms of the financial asset give rise on specific
in fair value recognised in the statement of profit and loss.
dates to cash flows that are solely payments
This category includes derivative instruments and listed
of principal and interest on principal amount
equity investments which the Group had not irrevocably
outstanding.
elected to classify at fair value through OCI. Dividends on
This category is most relevant to the Group. After initial listed equity investments are recognised in the statement
measurement, such financial assets are subsequently of profit and loss when the right of payment has been
measured at amortized cost using the effective interest established.
rate (EIR) method. Amortised cost is calculated by taking
into account any discount or premium on acquisition and Financial assets designated at fair value through OCI
fees or costs that are an integral part of EIR. EIR is the rate (equity instruments)
that exactly discounts the estimated future cash receipts Upon initial recognition, the Group can elect to classify
over the expected life of the financial instrument or a irrevocably its equity investments as equity instruments
shorter period, where appropriate, to the gross carrying designated at fair value through OCI when they meet
amount of the financial asset. When calculating the the definition of equity under Ind AS 32 Financial
effective interest rate, the Group estimates the expected Instruments: Presentation and are not held for trading.
cash flows by considering all the contractual terms of the The classification is determined on an instrument-by-
financial instrument but does not consider the expected instrument basis. Equity instruments which are held for
credit losses. The EIR amortization is included in other trading and contingent consideration recognised by an
income in profit or loss. The losses arising from impairment acquirer in a business combination to which Ind AS103
are recognized in the profit or loss. This category generally applies are classified as at FVTPL.
applies to trade and other receivables.
Gains and losses on these financial assets are never
Financial assets at fair value through OCI (FVTOCI) recycled to profit or loss. Dividends are recognised as
(debt instruments) other income in the statement of profit and loss when
A ‘financial asset’ is classified as at the FVTOCI if both of the right of payment has been established, except when
the following criteria are met: the Group benefits from such proceeds as a recovery of
part of the cost of the financial asset, in which case, such
a) Business Model Test: The objective of financial gains are recorded in OCI. Equity instruments designated
instrument is achieved by both collecting at fair value through OCI are not subject to impairment
contractual cash flows and selling the financial assessment.
assets; and
b) Cash flow characteristics test: The contractual Embedded Derivatives
terms of the Debt instrument give rise on specific A derivative embedded in a hybrid contract, with a
dates to cash flows that are solely payments financial liability or non-financial host, is separated from
of principal and interest on principal amount the host and accounted for as a separate derivative if: the
outstanding. economic characteristics and risks are not closely related

Consolidated

to the host; a separate instrument with the same terms Impairment of financial assets
as the embedded derivative would meet the definition of In accordance with IND AS 109, the Group applies
a derivative; and the hybrid contract is not measured at expected credit losses (ECL) model for measurement
fair value through profit or loss. Embedded derivatives and recognition of impairment loss on the following
are measured at fair value with changes in fair value financial asset and credit risk exposure
recognised in profit or loss. Reassessment only occurs if
- Financial assets measured at amortized cost;
there is either a change in the terms of the contract that
significantly modifies the cash flows that would otherwise - Financial assets measured at fair value through
be required or a reclassification of a financial asset out of other comprehensive income(FVTOCI);
the fair value through profit or loss category.
ECLs are based on the difference between the contractual
Derecognition cash flows due in accordance with the contract and all the
A financial asset (or, where applicable, a part of a financial cash flows that the Group expects to receive, discounted
asset or part of a Group of similar financial assets) is at an approximation of the original effective interest rate.
primarily derecognised (i.e. removed from the Group’s The expected cash flows will include cash flows from the
statement of financial position) when: sale of collateral held or other credit enhancements that
are integral to the contractual terms.
- The rights to receive cash flows from the asset
have expired, or ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in
- the Group has transferred its rights to receive cash
credit risk since initial recognition, ECLs are provided
flows from the asset or has assumed an obligation
for credit losses that result from default events that are
to pay the received cash flows in full without
possible within the next 12-months (a 12-month ECL).
material delay to a third party under a “pass
For those credit exposures for which there has been a
through” arrangement and either;
significant increase in credit risk since initial recognition,
a loss allowance is required for credit losses expected
(a) the Group has transferred substantially all
over the remaining life of the exposure, irrespective of the
the risks and rewards of the asset, or
timing of the default (a lifetime ECL).
(b) the Group has neither transferred nor retained
The Group follows “simplified approach” for recognition
substantially all the risks and rewards of the
of impairment loss allowance on:
asset, but has transferred control of the
asset. - Trade receivables or contract revenue receivables;
Trade receivables which are held to collect and
When the Group has transferred its rights to receive cash sale basis accounted for as FVTPL
flows from an asset or has entered into a pass-through
- All lease receivables resulting from the transactions
arrangement, it evaluates if and to what extent it has within the scope of Ind AS 116 -Leases
retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the Under the simplified approach, the Group does not track
risks and rewards of the asset, nor transferred control changes in credit risk. Rather, it recognizes impairment
of the asset, the Group continues to recognise the loss allowance based on lifetime ECLs at each reporting
transferred asset to the extent of the Group’s continuing date, right from its initial recognition. The Group uses a
involvement. In that case, the Group also recognises provision matrix to determine impairment loss allowance
an associated liability. The transferred asset and the on the portfolio of trade receivables. The provision matrix
associated liability are measured on a basis that reflects is based on its historically observed default rates over
the rights and obligations that the Group has retained. the expected life of trade receivable and is adjusted
for forward looking estimates. At every reporting date,
Continuing involvement that takes the form of a the historical observed default rates are updated and
guarantee over the transferred asset is measured at the changes in the forward looking estimates are analysed.
lower of the original carrying amount of the asset and the
maximum amount of consideration that the group could ECL impairment loss allowance (or reversal) recognized
be required to repay. during the period is recognized as income/expense in

the statement of profit and loss. This amount is reflected purpose of repurchasing in the near term. This category
under the head ‘other expenses’ in the statement of also includes derivative financial instruments entered
profit and loss. The balance sheet presentation for into by the Group that are not designated as hedging
various financial instruments is described below: instruments in hedge relationship as defined by Ind
AS 109. The separated embedded derivate are also
(a) Financial assets measured as at amortised
classified as held for trading unless they are designated
cost: ECL is presented as an allowance, i.e., as an
as effective hedging instruments.
integral part of the measurement of those assets
in the balance sheet. The allowance reduces the
Gains or losses on liabilities held for trading are
net carrying amount. Until the asset meets write-
recognized in the statement of profit and loss.
off criteria, the group does not reduce impairment
allowance from the gross carrying amount. Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such
(b) Loan commitments and financial guarantee at the initial date of recognition, and only if the criteria
contracts: ECL is presented as a provision in the in IND AS 109 are satisfied. For liabilities designated as
balance sheet, i.e. as a liability. FVTPL, fair value gains/losses attributable to changes
(c) Debt instruments measured at FVTOCI: For debt in own credit risk are recognized in OCI. These gains/
instruments measured at FVTOCI, the expected loss are not subsequently transferred to profit and loss.
credit losses do not reduce the carrying amount However, the Group may transfer the cumulative gain or
in the balance sheet, which remains at fair value. loss within equity. All other changes in fair value of such
Instead, an amount equal to the allowance that liability are recognized in the statement of profit or loss.
would arise if the asset was measured at amortised the Group has not designated any financial liability as at
cost is recognised in other comprehensive income fair value through profit and loss.
as the accumulated impairment amount.
Financial liabilities at amortised cost (Loans and
(ii) Financial liabilities: borrowings)
Initial recognition and measurement After initial recognition, interest-bearing borrowings are
Financial liabilities are classified at initial recognition as subsequently measured at amortized cost using the Effective
financial liabilities at fair value through profit or loss, interest rate method. Gains and losses are recognized in
loans and borrowings, and payables, net of directly profit or loss when the liabilities are derecognised as well
attributable transaction costs. All financial liabilities are as through the Effective interest rate amortization process.
recognised initially at fair value and, in the case of loans Amortized cost is calculated by taking into account any
and borrowings and payables, net of directly attributable discount or premium on acquisition and fees or costs that
transaction costs. The Group financial liabilities include are an integral part of the Effective interest rate. The Effective
loans and borrowings, trade payables, trade deposits, interest rate amortization is included as finance costs in the
retention money, liabilities towards services, sales statement of profit and loss.
incentive and other payables.
Trade Payables
Subsequent measurement These amounts represents liabilities for goods and
For purposes of subsequent measurement, financial services provided to the Group prior to the end of financial
liabilities are classified in two categories: year which are unpaid. The amounts are unsecured and
are usually paid per the term of contract with suppliers.
(i) Financial liabilities at fair value through profit or loss
Trade and other payables are presented as current
(ii) Financial liabilities at amortised cost (loans and liabilities unless payment is not due within 12 months
borrowings) after the reporting period. They are recognized initially at
fair value and subsequently measured at amortized cost
Financial liabilities at fair value through profit or loss using Effective interest rate method.
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial Financial guarantee contracts
liabilities designated upon initial recognition as at fair Financial guarantee contracts issued by the Group are
value through profit or loss. Financial liabilities are those contracts that require a payment to be made to
classified as held for trading if they are incurred for the reimburse the holder for a loss it incurs because the

Consolidated

specified debtor fails to make a payment when due 2.09 Derivative financial instruments and hedge accounting
in accordance with the terms of a debt instrument. Initial recognition and subsequent measurement
Financial guarantee contracts are recognized initially as
Derivative financial instruments are initially recognised at
a liability at fair value, adjusted for transaction costs that
fair value on the date on which a derivative contract is
are directly attributable to the issuance of the guarantee.
entered into and are subsequently re-measured at fair
Subsequently, the liability is measured at the higher of the
value. Derivatives are carried as financial assets when
amount of loss allowance determined as per impairment
the fair value is positive and as financial liabilities when
requirements of IND AS 109 and the amount recognized
the fair value is negative.
less cumulative amortization.
The purchase contracts that meet the definition of

Derecognition
a derivative under Ind AS 109 are recognised in the
A financial liability is derecognised when the obligation
statement of profit and loss. Commodity contracts
under the liability is discharged or cancelled or expires.
that are entered into and continue to be held for the
When an existing financial liability is replaced by another
purpose of the receipt or delivery of a non-financial item
from the same lender on substantially different terms, or
in accordance with the Group’s expected purchase, sale
the terms of an existing liability are substantially modified,
or usage requirements are held at cost.
such an exchange or modification is treated as the
derecognition of the original liability and the recognition
Any gains or losses arising from changes in the fair value
of a new liability. The difference in the respective carrying
of derivatives are taken directly to profit or loss, except
amounts is recognized in the statement of profit and
for the effective portion of cash flow hedges, which is
loss.
recognised in OCI and later reclassified to profit or loss
when the hedge item affects profit or loss or treated
Offsetting of financial instruments
as basis adjustment if a hedged forecast transaction
Financials assets and financial liabilities are offset
subsequently results in the recognition of a non-financial
and the net amount is reported in the balance sheet if
asset or non-financial liability.
there is a currently enforceable legal right to offset the
recognized amounts and there is an intention to settle on For the purpose of hedge accounting, hedges are
a net basis, to realize the assets and settle the liabilities classified as:
simultaneously.
(i) Fair value hedges when hedging the exposure to
Reclassification of financial assets/financial liabilities changes in the fair value of a recognised asset or
The Group determines classification of financial assets liability or an unrecognised firm commitment
and liabilities on initial recognition. After initial recognition, (ii) Cash flow hedges when hedging the exposure to
no reclassification is made for financial assets which are variability in cash flows that is either attributable to
equity instruments and financial liabilities. For financial a particular risk associated with a recognised asset
assets which are debt instruments, a reclassification or liability or a highly probable forecast transaction
is made only if there is a change in the business model or the foreign currency risk in an unrecognised firm
for managing those assets. Changes to the business commitment
model are expected to be infrequent. The Group’s
senior management determines change in the business (iii) Hedges of a net investment in a foreign operation
model as a result of external or internal changes which
are significant to the Group’s operations. Such changes Hedges that meet the strict criteria for hedge accounting
are evident to external parties. A change in the business are accounted for, as described below:
model occurs when the Group either begins or ceases
to perform an activity that is significant to its operations. (i) Fair value hedges
If the Group reclassifies financial assets, it applies the The change in the fair value of a hedging instrument is
reclassification prospectively from the reclassification date recognised in the statement of profit and loss as finance
which is the first day of the immediately next reporting costs. The change in the fair value of the hedged item
period following the change in business model. The Group attributable to the risk hedged is recorded as part of the
does not restate any previously recognised gains, losses carrying value of the hedged item and is also recognised
(including impairment gains or losses) or interest. in the statement of profit and loss as finance costs.

For fair value hedges relating to items carried at production of inventories are not written down
amortised cost, any adjustment to carrying value is below cost if the finished products in which they
amortised through profit or loss over the remaining term will be incorporated are expected to be sold at
of the hedge using the EIR method. EIR amortization or above cost. The comparison of cost and net
may begin as soon as an adjustment exists and no later realizable value is made on an item-by-item basis.
than when the hedged item ceases to be adjusted for
ii) Inventory of scrap materials have been valued at
changes in its fair value attributable to the risk being
net realizable value.
hedged.
b) Method of Valuation:
If the hedged item is derecognised, the unamortised fair
value is recognised immediately in profit or loss. When i) Cost of raw materials has been determined by
an unrecognised firm commitment is designated as a using moving weighted average cost method and
hedged item, the subsequent cumulative change in comprises all costs of purchase, duties, taxes
the fair value of the firm commitment attributable to the (other than those subsequently recoverable from
hedged risk is recognised as an asset or liability with a tax authorities) and all other costs incurred in
corresponding gain or loss recognised in profit and loss. bringing the inventories to their present location
and condition.
(ii) Cash flow hedges ii) Cost of finished goods and work-in-progress
The effective portion of the gain or loss on the hedging includes direct labour and an appropriate share
instrument is recognised in OCI in the cash flow hedge of fixed and variable production overheads. Fixed
reserve, while any ineffective portion is recognised production overheads are allocated on the basis
immediately in the statement of profit and loss. of normal capacity of production facilities. Cost is
determined on moving weighted average basis.
The ineffective portion relating to foreign currency
iii) Cost of traded goods has been determined by
contracts is recognised in finance costs and the
using moving weighted average cost method and
ineffective portion relating to commodity contracts is
comprises all costs of purchase, duties, taxes
recognised in other income or expenses.
(other than those subsequently recoverable from
Amounts recognised as OCI are transferred to profit or tax authorities) and all other costs incurred in
loss when the hedged transaction affects profit or loss, bringing the inventories to their present location
such as when the hedged financial income or financial and condition.
expense is recognised or when a forecast sale occurs. iv) Net realizable value is the estimated selling price
When the hedged item is the cost of a non-financial in the ordinary course of business, less estimated
asset or non-financial liability, the amounts recognised as costs of completion and estimated costs necessary
OCI are transferred to the initial carrying amount of the to make the sale.
non-financial asset or liability.
2.11 Non-current assets held for sale
If the hedging instrument expires or is sold, terminated
The Group classifies non-current assets as held for sale
or exercised without replacement or rollover (as part of
if their carrying amounts will be recovered principally
the hedging strategy), or if its designation as a hedge
through a sale rather than through continuing use and
is revoked, or when the hedge no longer meets the
the sale is considered highly probable. Such non-current
criteria for hedge accounting, any cumulative gain or
assets classified as held for sale are measured at the
loss previously recognised in OCI remains separately in
lower of their carrying amount and fair value less costs to
equity until the forecast transaction occurs or the foreign
sell. Any expected loss is recognized immediately in the
currency firm commitment is met.
statement of profit and loss.
2.10 Inventories
The criteria for held for sale classification is regarded as
a) Basis of valuation: met only when the assets is available for immediate sale
i) Inventories other than scrap materials are valued in its present condition, subject only to terms that are
at lower of cost and net realizable value after usual and customary for sales of such assets, its sale is
providing cost of obsolescence, if any. However, highly probable; and it will genuinely be sold. The Group
materials and other items held for use in the treats sale of the asset to be highly probable when:

Consolidated

i) The appropriate level of management is committed The current income tax charge is calculated on the
to a plan to sell the asset basis of the tax laws enacted or substantively enacted
at the end of the reporting period in the countries
ii) An active programme to locate a buyer and where the Group operate and generate taxable
complete the plan has been initiated (if applicable) income. Management periodically evaluates positions
taken in tax returns with respect to situations in which
iii) The asset is being actively marketed for sale at a
applicable tax regulation is subject to interpretation
price that is reasonable in relation to its current fair
and considers whether it is probable that a taxation
value,
authority will accept an uncertain tax treatment. The
iv) The sale is expected to qualify for recognition as group measures its tax balances either based on the
a completed sale within one year from the date of most likely amount or the expected value, depending
classification, and on which method provides a better prediction of the
resolution of the uncertainty.
v) Actions required to complete the plan indicate that
it is unlikely that significant changes to the plan will Current income tax relating to item recognized outside
be made or that the plan will be withdrawn. the statement of profit and loss is recognized outside
profit or loss (either in other comprehensive income or
The criteria for held for sale classification is regarded as equity).Current tax items are recognized in correlation
met only when the sale is highly probable and the asset to the underlying transactions either in OCI or directly in
is available for immediate sale in its present condition equity.
and the assets must have actively marketed for sale at a
price that is reasonable in relation to its current fair value. b) Deferred Tax
Actions required to complete the sale should indicate Deferred tax is provided in full using the balance sheet
that it is unlikely that significant changes to the plan to method on temporary differences arising between the
sale these assets will be made. Management must be tax bases of assets and liabilities and their carrying
committed to the sale, which should be expected to amounts in the financial statements. However, deferred
qualify for recognition as a completed sale within one tax liabilities are not recognised if they arise from the
year from the date of classification. initial recognition of goodwill.
Property, plant and equipment and intangible assets Deferred tax liabilities are recognised for all taxable
once classified as held for sale are not depreciated or temporary differences, except:
amortized. Assets and liabilities classified as held for sale i) When the deferred tax liability arises from the initial
are presented separately as current items in the balance recognition of goodwill or an asset or liability in a
sheet. transaction that is not a business combination and,
at the time of the transaction, affects neither the
2.12 Income Tax accounting profit nor taxable profit or loss
The income tax expense or credit for the period is the tax
ii) In respect of taxable temporary differences
payable on the current period’s taxable income based
associated with investments in subsidiaries,
on the applicable income tax rate adjusted by changes
associates and interests in joint ventures, when the
in deferred tax assets and liabilities attributable to
timing of the reversal of the temporary differences
temporary differences and to unused tax losses. Income
can be controlled and it is probable that the
Tax expense for the year comprises of current tax and
temporary differences will not reverse in the
deferred tax.
foreseeable future
a) Current income tax Deferred tax assets are recognised for all deductible
Current income tax, assets and liabilities are measured at temporary differences, the carry forward of unused tax
the amount expected to be paid to or recovered from the credits and any unused tax losses. Deferred tax assets
taxation authorities in accordance with the Income Tax are recognised to the extent that it is probable that
Act, 1961 and the Income Computation and Disclosure taxable profit will be available against which the deductible
Standards (ICDS) enacted in India by using tax rates and temporary differences, and the carry forward of unused
the tax laws that are enacted at the reporting date. tax credits and unused tax losses can be utilised, except:

i) When the deferred tax asset relating to the 2.13 Revenue from contract with customers
deductible temporary difference arises from The Group manufactures/trades and sells a range of
the initial recognition of an asset or liability in a consumer electrical and electronic products. Revenue from
transaction that is not a business combination and, contracts with customers involving sale of these products
at the time of the transaction, affects neither the is recognized at a point in time when control of the product
accounting profit nor taxable profit or loss. has been transferred, and there are no unfulfilled obligation
that could affect the customer’s acceptance of the
ii) In respect of deductible temporary differences
products which usually happen on delivery of goods. The
associated with investments in subsidiaries,
Group also provides installation, annual maintenance and
associates and interests in joint ventures, deferred
warranty services that are either sold separately or bundled
tax assets are recognised only to the extent that
together with the sale of goods. The Group recognizes
it is probable that the temporary differences will
these service revenue from sales of services over a period
reverse in the foreseeable future and taxable profit
of time, because the customer simultaneously receives and
will be available against which the temporary
consumes the benefits provided by the Group. The Group
differences can be utilised.
has objective evidence that all criterion for acceptance
has been satisfied. A receivable is recognised when the
The carrying amount of deferred tax assets is reviewed
control of the product is transferred as the consideration is
at each reporting date and reduced to the extent that
unconditional and payment becomes due upon passage of
it is no longer probable that sufficient taxable profit
time as per the terms of contract with customers.
will be available to allow all or part of the deferred
tax asset to be utilized. Unrecognized deferred tax
(a) Sale of goods
assets are re-assessed at each reporting date and are
recognized to the extent that it has become probable Revenue from sale of goods is recognised at the point
that future taxable profits will allow the deferred tax in time when control of the goods is transferred to the
asset to be recovered. customer, generally on delivery of the goods and there
are no unfulfilled obligations.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply in the year when The Group considers, whether there are other promises
the asset is realized or the liability is settled, based in the contract in which their are separate performance
on tax rates (and tax laws) that have been enacted or obligations, to which a portion of the transaction price
substantively enacted at the reporting date. needs to be allocated. In determining the transaction
price for the sale of goods, the Group allocates a
Deferred tax relating to items recognized outside the portion of the transaction price to different performance
statement of profit and loss is recognized outside the obligations goods bases on its relative consolidated
statement of profit and loss (either in other comprehensive prices and also considers the following:
income or in equity). Deferred tax items are recognized in
correlation to the underlying transaction either in OCI or (i) Variable consideration
direct in equity. The Group recognizes revenue from the sale of
goods measured at the consolidated selling price
Tax benefits acquired as part of a business combination, of the consideration received or receivable, net
but not satisfying the criteria for separate recognition of returns and allowances, trade discounts and
at that date, are recognised subsequently if new volume rebates. If the consideration in a contract
information about facts and circumstances change. includes a variable amount, the Group estimates
Acquired deferred tax benefits recognised within the the amount of consideration to which it will be
measurement period reduce goodwill related to that entitled in exchange for transferring the goods to the
acquisition if they result from new information obtained customer. The variable consideration is estimated at
about facts and circumstances existing at the acquisition contract inception and constrained until it is highly
date. If the carrying amount of goodwill is zero, any probable that a significant revenue reversal in the
remaining deferred tax benefits are recognised in OCI/ amount of cumulative revenue recognised will not
capital reserve depending on the principle explained for occur when the associated uncertainty with the
bargain purchase gains. All other acquired tax benefits variable consideration is subsequently resolved. The
realized are recognised in profit or loss. Group operates several sales incentive programmes

Consolidated

wherein the customers are eligible for several consumes the benefits provided by the Group. Revenue
benefits on achievement of underlying conditions from services related activities is recognised as and when
as prescribed in the scheme programme such services are rendered and on the basis of contractual
as credit notes, reimbursement, investments etc. terms with the parties.
Revenue from contract with customer is presented
after deducting cost of all these schemes. (c) Contract balances
A contract asset is the right to consideration in exchange
(ii) Warranty obligations for goods or services transferred to the customer.
The Group generally provides for warranties Contract assets are in the nature of unbilled receivables,
for general repair of defects. These warranties which arises when Group satisfies a performance
are assurance-type warranties under Ind AS obligation but does not have an unconditional rights
115, which are accounted for under Ind AS 37 to consideration. A receivables represents the Group’s
(Provisions, Contingent Liabilities and Contingent right to an amount of consideration that is unconditional.
Assets). However, in certain non-standard Contract assets are subject to impairment assessment.
contracts in respect of sale of consumer durable Refer to accounting policies on impairment of financial
goods, the Group provides extended warranties assets in section (Financial instruments – initial recognition
and such warranties are termed as service- and subsequent measurement).
type warranties and therefore, accounted for
as separate performance obligations to which A contract liability is the obligation to transfer goods or
the Group allocates a portion of the transaction services to a customer for which the Group has received
price. Revenue from service-type warranties is consideration (or an amount of consideration is due) from
recognised over the period in which the service is the customer. If a customer pays consideration before
provided based on the time elapsed the Group transfers goods or services to the customer, a
contract liability is recognised when the payment is made
(iii) Significant Financing Components or the payment is due (whichever is earlier). Contract
In respect of short-term advances from its liabilities are recognised as revenue when the Group
customers, using the practical expedient in Ind performs under the contract (i.e., transfers control of the
AS 115, the Group does not adjust the promised related goods or services to the customer).
amount of consideration for the effects of a
significant financing component if it expects, at A trade receivable is recognised if an amount of
contract inception, that the period between the consideration that is unconditional (i.e., only the passage
transfer of the promised good or service to the of time is required before payment of the consideration
customer and when the customer pays for that is due). Refer to accounting policies of financial assets
good or service will be within normal operating in section (Financial instruments – initial recognition and
cycle. subsequent measurement).
In respect of long term contracts, the transaction (d) Income from Service Concession Arrangement
price for these contracts is discounted, using the
Revenue related to Street Lights Upgrade services
interest rate implicit in the contract (i.e., the interest
provided under service concession arrangement is
rate that discounts the cash selling price of the
recognized as per the agreement with the grantor. The
equipment to the amount paid in advance).
Group recognizes a financial asset arising from the service
concession agreement when it has an unconditional
No significant element of financing is deemed
present as the sales are made with a credit term contractual right to receive cash or another financial asset
of 21 to 90 days, which is consistent with market from or at the direction of the grantor of the concession for
practice. the upgrade services provided. Such financial assets are
measured at fair value upon initial recognition.
(b) Sale of services
2.14 Other Income
The Group provides installation, annual maintenance and
extended warranty services that are sold separately. The (a) Interest Income
Group recognizes revenue from sales of services over For all debt instruments measured either at amortised
time, because the customer simultaneously receives and cost or at fair value through other comprehensive

income, interest income is recorded using the effective (ii) Post employment
interest rate (EIR). EIR is the rate that exactly discounts
a) Gratuity
the estimated future cash payments or receipts over
the expected life of the financial instrument or a shorter The Employee’s Gratuity Fund Scheme, which
period, where appropriate, to the gross carrying amount is defined benefit plan, is managed by Trust with
of the financial asset or to the amortised cost of a its investments maintained with Bajaj Allianz Life
financial liability. When calculating the effective interest Insurance Co.Ltd. The liabilities with respect
rate, the Group estimates the expected cash flows by to Gratuity Plan are determined by actuarial
considering all the contractual terms of the financial valuation on projected unit credit method on
instrument (for example, prepayment, extension, call the balance sheet date, based upon which the
and similar options) but does not consider the expected Group contributes to the Gratuity Scheme. The
credit losses. Interest income is included in other income difference, if any, between the actuarial valuation of
in the statement of profit and loss. the gratuity of employees at the year end and the
balance of funds is provided for as assets/(liability)
2.15 Other Operating Revenues in the books. Net interest is calculated by applying
(a) Export benefit the discount rate to the net defined benefit liability
or asset. The Group recognizes the following
Revenue from export benefits arising from Duty
changes in the net defined benefit obligation under
entitlement pass book (DEPB scheme), duty drawback
Employee benefit expense in statement of profit
scheme, merchandise export incentive scheme,
or loss:
Remission of duties and taxes on exported product
scheme are recognised on export of goods in accordance
a) Service costs comprising current service
with their respective underlying scheme at fair value of
costs, past-service costs, gains and losses
consideration received or receivable.
on curtailments and non-routine settlements
(b) Government Grants
b) Net interest expense or income
Government Grants are recognized at their fair value
when there is reasonable assurance that the grant will be Remeasurements, comprising of actuarial gains
received and all the attached conditions will be complied and losses, the effect of the asset ceiling, excluding
with. amounts included in net interest on the net defined
benefit liability and the return on plan assets
When the grant relates to an expense item, it is recognized (excluding amounts included in net interest on the net
as income on a systematic basis over the periods that defined benefit liability), are recognized immediately
the related costs, for which it is intended to compensate, in the Balance Sheet with a corresponding debit
are expensed. Government grant related to the non- or credit to retained earnings through other
monetary asset are recognised at nominal value and comprehensive income in the period in which they
presented by deducting the same from carrying amount occur. Remeasurements are not reclassified to profit
of related asset and the grant is then recognised in profit or loss in subsequent periods.
or loss over the useful life of the depreciable asset by
way of a reduced depreciation charge. b) Provident fund
Retirement benefit in the form of provident fund
2.16 Retirement and other employee benefits
is a defined contribution scheme. the Group has
(i) Short-term obligations no obligation, other than the contribution payable
Liabilities for wages and salaries, including non monetary to the provident fund. The Group recognizes
benefits that are expected to be settled wholly within contribution payable through provident fund
twelve months after the end of the period in which the scheme as an expense, when an employee renders
employees render the related service are recognized in the related services. If the contribution payable to
respect of employee service upto the end of the reporting scheme for service received before the balance
period and are measured at the amount expected to be sheet date exceeds the contribution already paid,
paid when the liabilities are settled. The liabilities are the deficit payable to the scheme is recognized
presented as current employee benefit obligations in the as liability after deducting the contribution already
balance sheet. paid. If the contribution already paid exceeds the

Consolidated

contribution due for services received before the based on the non-market vesting and service
balance sheet date, then excesses recognized as conditions. It recognizes the impact of the revision
an asset to the extent that the prepayment will lead to original estimates, if any, in profit or loss, with
to, for example, a reduction in future payment or a corresponding adjustment to equity.
cash refund.
(b) Havells Employees Long term Incentive plan:
(iii) Other employee benefits These are in nature of employee benefit wherein
Employees (including senior executives) of the Group employees (including senior executives) of the
receive remuneration in the form of share based payment Group purchase shares of the Group at fair value
transactions, whereby employees render services as on the grant cum allotment date and receives
consideration for equity instruments. In accordance with remuneration in the form of ex-gratia equivalent to
the Securities and Exchange Board of India (Share Based predefined percentage of purchase price paid by
Employee Benefits) Regulations, 2014 and the Ind-AS designated employee subject to serving of relevant
102 Share based payments, the fair value of options period of service after the grant cum allotment
granted under the Havells Long Term cumulative expense date. These are recognised at fair value of shares
recognized for equity-settled transactions at each granted and allotted as employee benefit expense
over the period of employee serving relevant
reporting date until the vesting date reflects the extent
period.
to which the vesting period has expired and the Group’s
best estimate of the number of equity instruments that
2.17 Leases
will ultimately vest. The expense or credit recognized in
the Statement of Profit and Loss for a period represents The Group assesses at contract inception whether a
the movement in cumulative expense recognized as at contract is, or contains, a lease. That is, if the contract
the beginning and end of that period and is recognized in conveys the right to control the use of an identified asset
employee benefits expense. for a period of time in exchange for consideration.
Where the terms of an equity-settled transaction award Group as a lessee

are modified, the minimum expense recognized is the The Group’s lease asset classes primarily comprise of
expense as if the terms had not been modified, if the lease for land and building. The Group applies a single
original terms of the award are met. An additional expense recognition and measurement approach for all leases,
is recognized for any modification that increases the total except for short-term leases and leases of low-value
intrinsic value of the share-based payment transaction, assets. The Group recognises lease liabilities to make
or is otherwise beneficial to the employee as measured lease payments and right-of-use assets representing the
at the date of modification. The Employee stock option right to use the underlying assets.
scheme is administered through Havells Employee
Welfare Trust. i) Right-of-use assets (ROU)
The Group recognises right-of-use assets at the
The Group provides long term incentive plan to commencement date of the lease (i.e., the date the
employees via equity settled share based payments as underlying asset is available for use). Right-of-use
enumerated below: assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
(a) Havells Employee Stock Purchase Plan: The for any remeasurement of lease liabilities. The
fair value of options granted under this option cost of right-of-use assets includes the amount
plan is recognised as an employee benefit of lease liabilities recognised, initial direct costs
expense with corresponding increase in equity in incurred, and lease payments made at or before
accordance with recognition and measurement the commencement date less any lease incentives
principles as prescribed in Ind AS 102 Share received. Right-of-use assets are depreciated on
Based Payments when grant is made. The total a straight-line basis over the shorter of the lease
expense is recognised over the vesting period, term and the estimated useful lives of the building
which is the period over which all of the specified (i.e. 30 and 60 years)
vesting conditions are to be satisfied. At end of the
reporting period, the entity revises its estimates of If ownership of the leased asset transfers to
the number of options that are expected to vest the Group at the end of the lease term or the

cost reflects the exercise of a purchase option, Variable lease payments that depend on sales are
depreciation is calculated using the estimated recognised in profit or loss in the period in which
useful life of the asset. The right-of-use assets are the condition that triggers those payments occurs.
also subject to impairment. Refer to the accounting
policies in section ‘Impairment of non-financial (iii) Short-term leases and leases of low-value assets
assets’. The Group applies the short-term lease recognition
exemption to its short-term leases (i.e., those
The Group classifies ROU assets as part of leases that have a lease term of 12 months or less
Property plant and equipment in Balance Sheet from the commencement date and do not contain
and lease liability in “ Financial Liability”. a purchase option). It also applies the lease of low-
value assets recognition exemption to leases that
ii) Lease Liabilities are considered to be low value. Lease payments
At the commencement date of the lease, the on short-term leases and leases of low-value
Group recognises lease liabilities measured at assets are recognised as expense on a straight-
the present value of lease payments to be made line basis over the lease term.
over the lease term. The lease payments include
fixed payments (including in substance fixed 2.18 Segment reporting:
payments) less any lease incentives receivable, Operating segments are reported in a manner consistent
variable lease payments that depend on an index with the internal reporting provided to the decision
or a rate, and amounts expected to be paid under making authority. The Board of directors monitors the
residual value guarantees. The lease payments operating results of all product segments separately
also include the exercise price of a purchase for the purpose of making decisions about resource
option reasonably certain to be exercised by the allocation and performance assessment.
Group and payments of penalties for terminating
the lease, if the lease term reflects the Group The operating segments have been identified on the
exercising the option to terminate. Variable lease basis of the nature of products/services. Further:
payments that do not depend on an index or a
rate are recognised as expenses (unless they 1. Segment revenue includes sales and other income
are incurred to produce inventories) in the period directly identifiable with/allocable to the segment
in which the event or condition that triggers the including inter - segment revenue.
payment occurs.
2. Expenses that are directly identifiable with/allocable
to segments are considered for determining the
In calculating the present value of lease payments,
segment result. Expenses which relate to the
the Group uses its incremental borrowing rate at the
Group as a whole and not allocable to segments
lease commencement date because the interest
are included under unallocable expenditure.
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease 3. Income which relates to the Group as a whole and
liabilities is increased to reflect the accretion of not allocable to segments is included in unallocable
interest and reduced for the lease payments made. income.
In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change 4. Segment assets and liabilities include those
in the lease term, a change in the lease payments directly identifiable with the respective segments.
(e.g., changes to future payments resulting from a Unallocable assets and liabilities represent the
change in an index or rate used to determine such assets and liabilities that relate to the Group as a
lease payments) or a change in the assessment of whole and not allocable to any segment.
an option to purchase the underlying asset.
2.19 Earnings Per Share
Lease payments are allocated between principal Basic earnings per share are calculated by dividing the
and finance cost. The finance cost is charged net profit or loss for the period attributable to equity
to profit or loss over the lease period so as to shareholders by the weighted average number of equity
produce a constant periodic rate of interest on the shares outstanding during the period. The weighted
remaining balance of the liability for each period. average number of equity shares outstanding during the

Consolidated

period is adjusted for events such as bonus issue, bonus (ii) Transactions and balances
element in a rights issue, share split, and reverse share Foreign currency transactions are translated into the
split (consolidation of shares) if any that have changed functional currency using the exchange rate prevailing at
the number of equity shares outstanding, without a the date of the transaction. Foreign exchange gains and
corresponding change in resources. losses resulting from the settlement of such transaction
and from the translation of monetary assets and liabilities
For the purpose of calculating diluted earnings per share, denominated in foreign currencies at year end exchange
the net profit or loss for the period attributable to equity rate are generally recognised in the statement of profit
shareholders and the weighted average number of and loss.
shares outstanding during the period are adjusted for the
effect of all potentially dilutive equity shares. Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
2.20 Borrowing Costs the exchange rates at the dates of the initial transactions.
Borrowing cost includes interest and other costs Non-monetary items measured at fair value in a foreign
incurred in connection with the borrowing of funds and currency are translated using the exchange rates at the
charged to Statement of Profit & Loss on the basis of date when the fair value is determined.
effective interest rate (EIR) method. Borrowing cost also
includes exchange differences to the extent regarded as (iii) Exchange differences
an adjustment to the borrowing cost. Exchange differences arising on settlement or translation
of monetary items are recognized as income or expense
Borrowing costs directly attributable to the acquisition,
in the period in which they arise with the exception of
construction or production of an asset that necessarily
exchange differences on gain or loss arising on translation
takes a substantial period of time to get ready for its
of non-monetary items measured at fair value which is
intended use or sale are capitalized as part of the cost
treated in line with the recognition of the gain or loss
of the respective asset. All other borrowing costs are
on the change in fair value of the item (i.e., translation
recognized as expense in the period in which they occur.
differences on items whose fair value gain or loss is
recognized in OCI or profit or loss are also recognized in
2.21 Cash and cash equivalents
OCI or profit or loss, respectively).
Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits Group Companies
with an original maturity of three months or less, that
On consolidation, the results and financial position of
are readily convertible to a known amount of cash and
foreign operations that have a functional currency different
subject to an insignificant risk of changes in value.
from the presentation currency (INR) are translated to the
presentation currency (INR) in the following manner:
For the purpose of presentation in the statement of cash
flows, cash and cash equivalents includes cash on hand, a) Assets and liabilities are translated at the rate of
deposit held at call with financial institutions, other short exchange prevailing at the reporting date
- term, highly liquid investments with original maturities
of three months or less that are readily convertible to b) Their statements of profit and loss are translated
known amounts of cash and which are subject to an at exchange rates prevailing at the dates of the
insignificant risk of changes in value, and bank overdrafts. transactions. For practical reasons, the group
Bank overdrafts are shown within borrowings in current uses an average rate to translate income and
liabilities in the balance sheet. expense items, if the average rate approximates
the exchange rates at the dates of the transactions
2.22 Foreign currency translation
c) All resulting exchange differences arising on
(i) Functional and presentation currency
translation of financial statement of foreign
Items included in the financial statements are measured operations for consolidation are recognised in
using the currency of the primary economic environment other comprehensive income.
in which the entity operates (‘the functional currency’).
The Group’s financial statements are presented in Indian d) On disposal of a foreign operation, the component
rupee (INR) which is also the Group’s functional and of OCI relating to that particular foreign operation is
presentation currency. recognised in profit or loss.

e) Any Goodwill arising on the acquisition/business cost to comply the said regulation and as reduced by
combination of a foreign operation and any fair expected realisation of collectable waste. The Group has
value adjustments to the carrying amounts of assessed the liability to arise on year to year basis.
assets and liabilities arising on the acquisition
are treated as assets and liabilities of the foreign Contingent liabilities
operation and translated at the spot rate of A contingent liability is a possible obligation that arises
exchange at the reporting date. from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
f) Gain or loss on a subsequent disposal of any
uncertain future events beyond the control of the Group
foreign operation excludes translation differences
or a present obligation that is not recognized because it is
that arose before the date of transition but includes
not probable that an outflow of resources will be required
only translation differences arising after the
to settle the obligation. A contingent liability also arises in
transition date.
extremely rare cases, where there is a liability that cannot
be recognized because it cannot be measured reliably.
2.23 Provisions and Contingent Liabilities
the Group does not recognize a contingent liability but
Provisions discloses its existence in the financial statements unless
A provision is recognized when the Group has a present the probability of outflow of resources is remote.
obligation (legal or constructive) as a result of past event,
it is probable that an outflow of resources embodying Provisions, contingent liabilities, contingent assets and
economic benefits will be required to settle the obligation commitments are reviewed at each balance sheet date.
and a reliable estimate can be made of the amount of
the obligation. These estimates are reviewed at each 2.24 Dividend Distributions
reporting date and adjusted to reflect the current best The Group recognizes a liability to make the payment
estimates. If the effect of the time value of money is of dividend to owners of equity, when the distribution
material, provisions are discounted using a current pre- is authorised and the distribution is no longer at the
tax rate that reflects, when appropriate, the risks specific discretion of the Group. As per the corporate laws in
to the liability. When discounting is used, the increase in India, a distribution is authorised when it is approved by
the provision due to the passage of time is recognized as the shareholders. A corresponding amount is recognised
a finance cost. directly in equity.
Insurance claims are accounted for on the basis of claims 2.25 Fair value measurement
admitted/expected to be admitted and to the extent that
The Group measures financial instruments at fair value at
the amount recoverable can be measured reliably and
each balance sheet date.
realisation in respect thereof is virtually certain.
Fair value is the price that would be received to sell an
Warranty Provisions asset or paid to transfer a liability in an ordinary transaction
Provision for warranty-related costs are recognized when between market participants at the measurement date.
the product is sold or service is provided to customer. The fair value measurement is based on the presumption
Initial recognition is based on historical experience. the that the transaction to sell the asset or transfer the liability
Group periodically reviews the adequacy of product takes place either:
warranties and adjust warranty percentage and warranty
(i) In the principal market for asset or liability, or
provisions for actual experience, if necessary. The timing
of outflow is expected to be with in one to seven years. (ii) In the absence of a principal market, in the most
advantageous market for the asset or liability.
Provision for E-Waste/Plastic-Waste
Provision for E-Waste/Plastic-Waste management The principal or the most advantageous market must be
costs are recognized when the liability in respect of accessible by the Group.
products sold to customer is established in accordance
with E-waste Management Rules, 2016 as notified The fair value of an asset or liability is measured using
by Government of India. Initial recognition is based the assumptions that market participants would use
on liability computed based on Extended Producer when pricing the asset or liability, assuming that market
Responsibility as promulgated in said Rules including participants act in their economic best interest.

Consolidated

A fair value measurement of a non- financial asset takes the acquiree’s identifiable net assets. Acquisition-related
into account a market participant’s ability to generate costs are expensed as incurred.
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that At the acquisition date, the identifiable assets
would use the asset in its highest and best use. acquired, and the liabilities assumed are recognised
at their acquisition date fair values. For this purpose,
The Group uses valuation techniques that are appropriate the liabilities assumed include contingent liabilities
in the circumstances and for which sufficient data are representing present obligation and they are measured
available to measure fair value, maximising the use of at their acquisition fair values irrespective of the fact that
relevant observable inputs and minimizing the use of outflow of resources embodying economic benefits is
unobservable inputs. not probable.
All assets and liabilities for which fair value is measured (ii) Business Combinations involving entities or businesses
or disclosed in the financial statements are categorized in which all the combining entities or businesses are
within the fair value hierarchy, described as follows, ultimately controlled by the same party or parties both
based on the lowest level input that is significant to the before and after the business combination, and where
fair value measurement as a whole: that control is not transitory is accounted using the
pooling of interests method as enumerated below:
Level 1- Quoted(unadjusted) market prices in active
markets for identical assets or liabilities a) The assets and liabilities of the combining entities
are reflected at their carrying amounts.
Level 2- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is b) No adjustments are made to reflect fair values,
directly or indirectly observable or recognise any new assets or liabilities. The
only adjustments that are made are to harmonise
Level 3- Valuation techniques for which the lowest level accounting policies.
input that is significant to the fair value measurement is
unobservable c) The financial information in the financial statements
in respect of prior periods should be restated as if
For assets and liabilities that are recognized in the the business combination had occurred from the
financial statements on a recurring basis, the Group beginning of the preceding period in the financial
determines whether transfers have occurred between statements, irrespective of the actual date of the
levels in the hierarchy by re-assessing categorization combination. However, if business combination
(based on the lowest level input that is significant to had occurred after that date, the prior period
fair value measurement as a whole) at the end of each information shall be restated only from that date.
reporting period.
d) The balance of the retained earnings appearing
For the purpose of fair value disclosures, the Group in the financial statements of the transferor is
has determined classes of assets and liabilities on the aggregated with corresponding balance appearing
basis of the nature, characteristics and risks of the asset in the financial statements of the transferee or is
or liability and the level of the fair value hierarchy as adjusted against revenue reserve.
explained above.
e) The identity of the reserves shall be preserved
2.26 Business Combinations and shall appear in the financial statements of the
(i) Business combinations are accounted for using transferee in the same form in which they appeared
the acquisition method. The cost of an acquisition in the financial statements of the transferor.
is measured as the aggregate of the consideration
transferred measured at acquisition date fair value f) The difference, if any, between the amounts
and the amount of any non-controlling interests in the recorded as share capital issued plus any additional
acquire. For each business combination, the Group consideration in the form of cash or other assets
elects whether to measure the non-controlling interests and the amount of share capital of the transferor is
in the acquire at fair value or at the proportionate share of transferred to revenue reserves/capital reserves.

2.27 Significant accounting judgments, estimates and c) Gratuity benefit

assumptions The cost of defined benefit plans (i.e. Gratuity benefit)
The preparation of these consolidated financial is determined using actuarial valuations. An actuarial
statements requires the management to make valuation involves making various assumptions which
judgments, use estimates and assumptions that affect may differ from actual developments in the future. These
the reported amounts of revenues, expenses, assets include the determination of the discount rate, future
and liabilities, and the acGrouping disclosures, and the salary increases, mortality rates and future pension
disclosure of contingent liabilities. Uncertainty about increases. Due to the complexity of the valuation, the
these judgements, assumptions and estimates could underlying assumptions and its long-term nature, a
result in outcomes that require a material adjustment to defined benefit obligation is highly sensitive to changes
the carrying amount of the asset or liability affected in in these assumptions. All assumptions are reviewed
future periods. at each reporting date. In determining the appropriate
discount rate, management considers the interest
a) Leases rates of long term government bonds with extrapolated
The Group determines the lease term as the non- maturity corresponding to the expected duration of the
cancellable term of the lease, together with any periods defined benefit obligation. The mortality rate is based on
covered by an option to extend the lease if it is reasonably publicly available mortality tables for India. Future salary
certain to be exercised, or any periods covered by an increases and pension increases are based on expected
option to terminate the lease, if it is reasonably certain future inflation rates for India. Further details about the
not to be exercised. assumptions used, including a sensitivity analysis, are
given in Note 31(3).
The Group has several lease contracts that include
extension and termination options. The Group applies d) Impairment of non-financial assets
judgement in evaluating whether it is reasonably certain The Group assesses at each reporting date whether there
whether or not to exercise the option to renew or terminate is an indication that an asset including intangible assets
the lease. That is, it considers all relevant factors that having indefinite useful life and goodwill may be impaired.
create an economic incentive for it to exercise either If any indication exists, or when annual impairment testing
the renewal or termination. After the commencement for an asset is required, the Group estimates the asset’s
date, the Group reassesses the lease term if there is recoverable amount. An assets recoverable amount is
a significant event or change in circumstances that is the higher of an asset’s CGU’S fair value less cost of
within its control and affects its ability to exercise or not disposal and its value in use. Where the carrying amount
to exercise the option to renew or to terminate (e.g., of an asset or CGU exceeds its recoverable amount, the
construction of significant leasehold improvements or asset is considered impaired and is written down to its
significant customisation to the leased asset). recoverable amount.
b) Taxes In assessing value in use, the estimated future cash flows

Uncertainties exist with respect to the interpretation of are estimated based on past rend and discounted to their
tax regulations, changes in tax laws, and the amount present value using a pre-tax discount rate that reflects
and timing of future taxable income. Given the wide current market assessments of the time value of money
range of business relationships differences arising and the risks specific to the asset. In determining fair
between the actual results and the assumptions value less costs of disposal, recent market transactions
made, or future changes to such assumptions, could are taken into account. If no such transactions can be
necessitate future adjustments to tax income and identified, an appropriate valuation model is used. These
expense already recorded. The Group establishes calculations are corroborated by valuation multiples, or
provisions, based on reasonable estimates. The other fair value indicators.
amount of such provisions is based on various factors,
such as experience of previous tax assessments e) Provision for warranty
and differing interpretations of tax regulations by the Warranty provisions is determined based on the historical
taxable entity and the responsible tax authority. (Refer percentage of warranty expense to sales for the same
Note 16) types of goods for which the warranty is currently being

Consolidated

determined. The same percentage to the sales is applied end of each year. The useful life is based on historical
for the current accounting period to derive the warranty experience with similar assets, in anticipation of future
expense to be accrued. It is adjusted to account for events, which may have impact on their life such as
unusual factors related to the goods that were sold, such change in technology.
as defective inventory lying at the depots. The warranty
claims may not exactly match the historical warranty 2.28 Exceptional Item
percentage, so such estimates are reviewed annually for
Exceptional Items Group recognises exceptional item
any material changes in assumptions and likelihood of
when items of income and expenses within Statement
occurrence. The assumptions are consistent with prior
years. (Refer Note 18) of Profit and Loss from ordinary activities are of
such size, nature or incidence that their disclosure is
f) Provision for expected credit losses (ECL) of trade relevant to explain the performance of the enterprise
receivables and contract assets for the period.
The Group uses a provision matrix to calculate ECLs
for trade receivables and contract assets. The provision 2.29 New and amended standards adopted by the
rates are based on days past due for groupings of various Group
customer segments that have similar loss patterns (i.e., The Ministry of Corporate Affairs had vide notification
by geography, product type, customer type and rating, dated March 23, 2022 notified Companies (Indian
and coverage by letters of credit and other forms of Accounting Standards) Amendment Rules, 2022 which
credit insurance). The provision matrix is initially based on amended certain accounting standards, and are effective
the Group’s historical observed default rates. The Group
April 1, 2022. These amendments did not have any
will calibrate the matrix to adjust the historical credit loss
impact on the amounts recognised in prior periods and
experience with forward-looking information. At every
are not expected to significantly affect the current or
reporting date, the historical observed default rates are
updated and changes in the forward-looking estimates future periods.
are analysed.
New and amended standards issued but not effective
The assessment of the correlation between historical The Ministry of Corporate Affairs has vide notification
observed default rates, forecast economic conditions dated March 31, 2023 notified Companies (Indian
and ECLs is a significant estimate. The amount of ECLs Accounting Standards) Amendment Rules, 2023 (the
is sensitive to changes in circumstances and of forecast ‘Rules’) which amends certain accounting standards,
economic conditions. The Group’s historical credit loss and are effective April 1, 2023.
experience and forecast of economic conditions may also
not be representative of customer’s actual default in the The Rules predominantly amend Ind AS 12, Income
future. The information about the ECLs on the Group’s
taxes, and Ind AS 1, Presentation of financial
trade receivables and contract assets is disclosed in
statements. The other amendments to Ind AS
Note 31(9)
notified by these rules are primarily in the nature of
g) Property, Plant and Equipment and intangible assets clarifications.
Property, Plant and Equipment represent significant

These amendments are not expected to have a material
portion of the asset base of the Group. The charge
impact on the group in the current or future reporting
in respect of periodic depreciation is derived after
periods and on foreseeable future transactions.
determining an estimate of assets expected useful
life and expected value at the end of its useful life. Specifically, no changes would be necessary as a
The useful life and residual value of Group’s assets consequence of amendments made to Ind AS 12 as
are determined by Management at the time asset is the group’s accounting policy already complies with
acquired and reviewed periodically including at the the now mandatory treatment.

3. Property, plant and equipment
280
(` in crores)
Particulars Freehold Buildings Leasehold Plant and Moulds Furniture Vehicles R&D Office Electrical Right of use asset Total Capital Grand
Land Improvements Machinery and Dies and Equipments Equipments Installations Leasehold Leasehold Work in Total
fixtures Land Buildings progress
Gross carrying amount (at cost)
At April 01, 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
Additions 0.50 16.37 2.02 129.51 79.45 20.67 6.19 5.11 12.35 4.18 1.87 132.69 410.91 243.32 654.23
Recognition of grant related to - (0.47) - (1.59) (1.41) (0.05) - - (0.10) (0.10) - - (3.72) - (3.72)

assets {Refer note 3 (iv)}
Disposals/Adjustments * (0.01) (1.09) (0.06) (11.20) (1.31) (0.77) (2.75) (0.91) (9.51) (0.15) - (13.13) (40.89) (272.83) (313.72)
At March 31, 2022 27.77 789.89 15.12 975.91 372.18 73.38 16.18 46.33 119.71 50.75 230.15 302.06 3,019.43 56.75 3,076.18
Additions - 95.11 0.03 200.51 97.65 11.28 5.87 9.97 26.93 6.56 1.34 51.86 507.11 514.87 1,021.98
Recognition of grant related to - - - - - - - - - - - - - - -

assets
Disposals/adjustments * - (9.50) (1.10) (28.77) (13.41) (4.37) (0.72) (1.66) (5.08) (1.64) - (8.85) (75.10) (408.20) (483.30)
At March 31, 2023 27.77 875.50 14.05 1,147.65 456.42 80.29 21.33 54.64 141.56 55.67 231.49 345.07 3,451.44 163.42 3,614.86
Accumulated Depreciation
At April 01, 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
At March 31, 2022 - 177.69 8.42 379.52 167.62 25.96 6.56 22.44 86.48 24.74 6.24 92.31 997.98 - 997.98
At March 31, 2023 - 205.82 9.28 455.16 217.66 30.70 7.58 27.96 97.27 27.63 8.78 135.75 1,223.59 - 1,223.59
Net carrying amount
At April 01, 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
At March 31, 2022 27.77 612.20 6.70 596.39 204.56 47.42 9.62 23.89 33.23 26.01 223.91 209.75 2,021.45 56.75 2,078.20
At March 31, 2023 27.77 669.68 4.77 692.49 238.76 49.59 13.75 26.68 44.29 28.04 222.71 209.32 2,227.85 163.42 2,391.27
* Disposal includes assets held for sale amounting to 10.53 crores (March 31, 2022 ` 0.73 Crores), and includes transfers in relation to Capital work in progress.
Notes:
(i) Right of Use asset includes:
(a) “Leasehold Land” represents land obtained on long term lease from various Government authorities.
(b) Leasehold Buildings represent properties taken on lease for its offices and warehouses accounted for in accordance with principle of Ind AS 116 ‘Leases’. Refer Note 31(2)
(ii) Capital work in progress as at March 31, 2023 includes assets under construction at various plants including air conditioning plant,washing machine, cable and flexible cable,
lighting and fixtures etc. Adjustment in relation to capital work in progress relates to addition in property, plant and equipment made during the year.
(iii) Disclosure of Contractual commitment for the acquisition of property plant and equipment has been provided in note 30(B).
(iv) The grant related to assets incudes:
(a) Subsidy of ` Nil (March 31, 2022 ` 3.72 core) on account of Modified Special Incentive Package (MSIP) scheme for making capital investment at Ghiloth District, General
Zone Industrial Area RIICO in the state of Rajasthan.
(v) The Group has not revalued its Property Plant and Equipment (Including Right of use assets) or Intangible assets during the year
Consolidated

(vi) Net Block as on July 27, 2022 has been recognised as Exceptional Item in the Current year towards loss on account of fire
at Neemrana plant of the Group for the following item. {Refer note 31(13)}
(` in crores)
Particulars Plant and Moulds and Furniture and R&D Office Electrical Capital Work Grand
Equipments Dies fixtures Equipments Equipments Installations in progress Total
Gross carrying 17.90 0.59 3.05 0.04 2.13 1.32 0.55 25.58
amount (at cost)
Accumulated (6.72) (0.46) (1.56) (0.02) (1.76) (0.89) (11.41)
Depreciation
Net Block - 11.18 0.13 1.49 0.02 0.37 0.43 0.55 14.17
July 27, 2022
(vii) Capital work-in-progress (“CWIP”) Ageing schedule
(` in crores)

(` in crores)
Projects in progress 53.58 3.17 - - 56.75
Note: There are no projects under Capital Work in progress where the completion is overdue or has exceeded its cost
compared to its original plan.
(viii) Title deeds of Immovable Property not held in the name of the Group
Relevant line Description Gross Title deeds Whether title deed holder Property Reason for Immovable
item in the of item of carrying held in the is a promoter, director held since Property not held in the
Balance Sheet property value (` in name of or relative of promoter/ which date name of Group
crores) director or employee of
promoter/director
Property, plant Freehold 15.89 Late Shri Qimat Erstwhile Promoter/Director March 31, The possession and original
and equipment land in Delhi Rai Gupta, on 2011 agreement to sell, of the
behalf of M/s property is in the name of
Guptajee & Co. Group. The title deeds will
be registered in the name
of the Group once state
government's policy on
registry is changed.
Property, plant Building In 0.04 Shakereh No April 01, The possession and original
and equipment Bengaluru Shraddhanand 2012 agreement to sell, of the
property is in the name of
Group. The Group is taking
adequate legal steps to get
the title deeds registered
with appropriate authority.

(ix) Property where Group is a lessee but agreements are not executed
(` in crores)
Relevant line Description Gross Net Net Title deeds Whether title deed holder Property Reason for lease
item in the of item of carrying Carrying Lease held in the is a promoter, director held since agreement not executed
Balance Sheet property value value liability name of or relative of promoter/ which date with the Group
director or employee of
promoter/director
Property, plant Building in 43.20 39.44 41.82 QRG Promoter till 12 Oct 2022 August 01, Rent is being paid
and equipment Sahibabad Enterprises {refer note 31(5)} 2007 based on the mutual
Limited understanding and the
Property, plant Building in 96.79 82.29 86.93 QRG Promoter till 12 Oct 2022 July 01, 2008 monthly invoice for usage
and equipment Noida Enterprises {refer note 31(5)} charges raised by QRG
Limited Enterprises {refer note
31(5)}
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 assets under Intangible
Network Fee development Assets
Gross carrying amount
(at cost)
At April 01, 2021 53.72 9.66 1,029.00 82.40 58.50 1,233.28 310.47 3.65 1,547.40
Additions 8.70 1.91 - - - 10.61 - 0.69 11.30
Disposals/adjustments (9.75) (0.06) - - - (9.81) - (3.88) (13.69)
At March 31, 2022 52.67 11.51 1,029.00 82.40 58.50 1,234.08 310.47 0.46 1,545.01
Additions 2.88 3.89 - - - 6.77 - 2.99 9.76
Disposals/adjustments - - - - - - - (0.46) (0.46)
At March 31, 2023 55.55 15.40 1,029.00 82.40 58.50 1,240.85 310.47 2.99 1,554.31
Accumulated
amortization
At April 01, 2021 35.81 5.56 - 40.20 32.58 114.15 - - 114.15
Disposals/adjustments (8.74) (0.04) - - - (8.78) - - (8.78)
At March 31, 2022 34.00 6.95 - 50.50 40.94 132.39 - - 132.39
Disposals/adjustments - - - - - - - - -
At March 31, 2023 39.75 8.67 - 60.80 49.30 158.52 - - 158.52
Net carrying amount
At April 01, 2021 17.91 4.10 1,029.00 42.20 25.92 1,119.13 310.47 3.65 1,433.25
At March 31, 2022 18.67 4.56 1,029.00 31.90 17.56 1,101.69 310.47 0.46 1,412.62
At March 31, 2023 15.80 6.73 1,029.00 21.60 9.20 1,082.33 310.47 2.99 1,395.79
Note:
Impairment testing of goodwill and intangible assets with indefinite lives
Goodwill and Brand & Trademarks acquired on acquisition of Lloyd business having indefinite useful lives have been allocated to a separate single cash
generating unit (CGU) i.e. LLOYD consumers. The Group has performed an annual impairment test to ascertain the recoverable amount of such goodwill
and intangible assets. 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 a 5 years period. 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.
Management has determined following assumptions for impairment testing of CGU as stated Below:
Assumption March 31, 2023 Approach used in determining value

Weighted average Cost of capital % (WACC) 15.30% 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% Long term growth rate has been taken basis on overall economic growth
rate, industry trend & expected long-term inflation in India.

Consolidated

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 GGU 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.
Intangible assets under development

(` in crores)

(` in crores)
Note: There are no projects under Intangible assets under development where the completion is overdue or has exceeded its cost compared to
its original plan.
5. Contract Balances
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) Trade Receivables {refer note (a) below and note 10(B)} 975.53 768.93
975.53 768.93
(B) Contract Assets (Unsecured, considered good) {refer note (b)} 52.24 65.38
52.24 65.38
(C) Contract Liability {refer note (c) and note 21(v)} 88.52 62.02
88.52 62.02
Note:
(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 agreement with customers where in the Group had identified multiple
performance obligations as per Ind AS 115 “Revenue from contracts with customers”. The Group’s right to receive
consideration is conditional upon satisfaction of all performance obligations. Accordingly, the Group has recognised contract
assets in respect of performance obligations satisfied during the year. The contract assets arises when Group satisfies a
performance obligation but does not have an unconditional right to consideration. Contract assets have decreased in the
current year on account of decrease in the time frame for a” right to consideration” becoming unconditional.

(c) The Group has entered into the agreements with customer for sale of goods and services. The Group has identified these
performance obligations and recognised the 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, 2023 March 31, 2022
(A) NON-CURRENT INVESTMENT (valued at amortised cost)
(i) Deposits account with financial institution having remaining maturity period of - 272.68
more than twelve months (refer note (a) below)
(II) Investment in preference shares (fully paid-up)
Unquoted
1,72,563 (0.001%) compulsorily convertible cumulative participative preference 20.00 -
shares Singularity Furniture Pvt Ltd. (March 31, 2022 Nil)
20.00 272.68
Total non-current investments 20.00 -
Aggregate amount of unquoted investments 20.00 -
(a) The deposits maintained by the Group with financial institution comprise of the time deposits and are made of varying
periods between one year to two years depending on the cash requirements of the Group and earn interest at the

Unsecured {refer note 10(B)}
Trade receivables from contracts with customers - considered good 1.59 2.67
1.59 2.67
(C) OTHER FINANCIAL ASSETS (valued at amortised cost)
Earnest money and Security Deposits 33.84 21.98
Others
Bank deposits with original and remaining maturity of more than twelve months 115.24 20.20
149.08 42.18
7. Other Non-Current Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Capital advances 47.70 7.22
Others
Deposits with Statutory and Government authorities 26.53 29.89
78.94 42.93
8. Non Current Tax Assets (Net)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Current tax assets net of current tax payable 29.03 26.54
29.03 26.54

Consolidated

9. Inventories
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(Valued at lower of cost and net realisable value unless otherwise stated)
Raw materials and components 836.69 754.89
Work-in-progress 165.56 202.06
Finished goods 1,764.20 1,359.07
Stores and spares 46.19 34.07
Loose tools 4.21 2.62
Scrap materials 16.11 13.87
3,708.58 2,968.08
Notes:
(a) The above includes goods in transit as under:
Raw materials 148.92 180.41
Finished goods 201.21 234.65
(b) The stock of scrap materials have been taken at net realisable value.
10. Current Financial Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) CURRENT INVESTMENT (valued at amortised cost)
Deposits account with financial institution with original maturity of more than 180.87 153.42
twelve months but remaining maturity less than 12 months
180.87 153.42
Aggregate amount of impairment in the value of investments - -
Note:
(a) The deposits maintained by the Group with financial institution comprise of the time deposits and are made for varying
periods between one year to two years depending on the cash requirements of the Group and earn interest at the

Unsecured
Trade receivables from contract with customers - considered good 1034.30 813.51
Trade receivables - Credit impaired 28.89 27.16
Trade receivables (gross) 1063.19 840.67
Less: Impairment allowance for trade receivables 87.66 71.74
Trade receivables (net) 975.53 768.93
Non - current portion {refer note 6(B)} 1.59 2.67

(I) Trade receivables ageing schedule as at 31 March 2023

(` in crores)
Particulars Outstanding for following periods from due date of payment Total
Unbilled Not Less than 6 months 1 - 2 years 2 - 3 years More than
dues due 6 months - 1 year 3 years
considered good
in credit risk
credit impaired
considered good
(v) Disputed Trade receivables - - - - - - - - -
in credit risk
credit impaired
Total - 269.08 602.01 71.36 56.16 42.02 22.56 1063.19
Less: Allowance for trade - (0.01) (0.21) (5.03) (17.83) (42.02) (22.56) (87.66)
receivables
Total - 269.07 601.80 66.33 38.33 - - 975.53
(II) Trade receivables ageing schedule as at March 31, 2022

(` in crores)
Particulars Outstanding for following periods from due date of payment Total
Unbilled Not Less than 6 months 1 - 2 years 2 - 3 years More than
dues due 6 months - 1 year 3 years
considered good
in credit risk
credit impaired
considered good
(v) Disputed Trade receivables - - - - - - - - -
in credit risk
credit impaired
Total - 524.44 163.58 47.61 62.98 23.75 18.31 840.67
Less: Allowance for trade - (0.01) (0.50) (4.43) (24.74) (23.75) (18.31) (71.74)
receivables
Total - 524.43 163.08 43.18 38.24 - - 768.93
Notes:
(a) Trade receivables are usually on trade terms based on credit worthiness of customers as per the terms of contract with
customers.

Consolidated

(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.
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(C) CASH AND CASH EQUIVALENTS
Current accounts (net) {refer note (c)} 71.54 36.86
Deposits with original maturity of less than three months {refer notes (b) 363.57 624.72
and (d)}
465.16 775.84
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 for varying periods between one day to three months depending on the immediate cash
requirements of the Group and earn interest at the respective short-term deposits rates.
(c) Includes amount of ` 0.47 crores (March 31, 2022 ` 0.15 cr) related to Unspent CSR amount kept in separate bank account
as per provision of section 135(6) of Companies Act, 2013.
(d) Includes Fixed Deposit amounting ` 1.03 crores (March 31, 2022 ` 0.96 crores) related to Havells Employees Welfare Trust.
(e) Change in liabilities arising from financing activities
(` in crores)
Long Term Borrowing Short Term Borrowing Lease Liabilities
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2023 2022 2023 2022 2023 2022
Opening balance 395.53 492.20 - - 220.87 130.66
Addition on account of new leases during the - - - - 50.73 131.92
year {refer Note 31(2)}
Deletion on account of termination of leases - - - - (4.10) (6.68)
during the year {refer Note 31(2)}
Cash inflow from borrowings - 0.04 - - - -
Cash outflows (393.69) (97.35) - - (44.28) (34.54)
Interest expense 5.14 25.10 - - 18.35 14.89
Interest paid (6.98) (24.46) - - (18.35) (14.89)
Closing balance 0.00 395.53 - - 223.10 220.87
Non-current Borrowing {refer note 14 (A)} - 272.57 - - - -

Non-current lease liability {refer note 14 (B)} - - - - 186.91 178.82
Current maturity of long term borrowing {refer - 122.96 - - - -
note 17 (A)}
Current maturity of long term lease liability {refer - - - - 36.19 42.05
note 17 (B)}

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(D) OTHER BANK BALANCES
Deposits account with original maturity of more than three months but expiring 551.59 72.07
less than twelve months {refer notes (a) and (e)}
Deposits account with original maturity of more than twelve months {refer 851.16 1,697.39
notes (b) and (d)}
Unpaid dividend account {refer note (c)} 2.26 2.68
1405.01 1772.14
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.
(d) Includes Fixed Deposit amounting ` 4.34 crores (March 31, 2022 ` 4.14 crores) related to Unspent CSR amount kept in
separate bank account as per provision of section 135(6) of Companies Act, 2013.
(e) Includes Fixed Deposit amounting ` 6.45 crores (March 31, 2022 ` 4.82 crores) related to Havells Employees Welfare Trust.
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(E) OTHER FINANCIAL ASSETS (valued at amortised cost)
Earnest money and security deposits 3.71 3.32
Contractual claims and other receivables {refer note (a)} 113.18 26.57
116.89 29.89
Note:
(a) Contractual claims and other receivables includes claims in accordance with contract with vendors.
11. Other Current Assets

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Advances other than capital advances
Advances for materials and services 29.46 23.54
Others
Duty free licenses in hand 4.19 2.40
Government grant receivable 4.98 9.34
Balance with Statutory and Government authorities/Others 92.39 50.51
178.52 113.65

Consolidated

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Movement of Government grant receivable
Accrual of grant related to income (credited to statement of profit and 10.13 10.66
loss account) (refer note 21)
Grant related to asset realised - (3.72)
Grant related to income realised (14.49) (20.62)
Closing Balance 4.98 9.34
Note: Government grant receivable includes export incentives, Budgetary support for refund of Goods and Service Tax and
investment subsidy.
12. Assets Classified as held for Sale

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Property, plant and equipment
Assets retired from active use 10.53 0.73
10.53 0.73
13. Equity
(A) Share Capital
(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) Share Capital
a) Authorized Share Capital
1,032,000,000 equity shares of ` 1/- each (March 31, 2022: 1,032,000,000 103.20 103.20
equity shares of ` 1/- each)
5,50,000 preference shares of ` 10/- each (March 31, 2022: 5,50,000 0.55 0.55
preference shares of ` 10/- each)
103.75 103.75
b) Issued, subscribed and fully paid-up
626,509,738 equity shares of ` 1/- each (March 31, 2022: 626,303,067 equity 62.65 62.63
shares of ` 1/- each)
c) Reconciliation of the shares outstanding at the beginning and at the end of the year
(` in crores)
As at March 31, 2023 As at March 31, 2022
No. of shares ` in crores No. of shares ` in crores
At the beginning of the year 626,303,067 62.63 626,013,006 62.60
Add: Exercise of employee stock purchase plan - 206,671 0.02 290,061 0.03
proceeds received {refer note 31(6)}
626,509,738 62.65 626,303,067 62.63

d) Shareholding of promoters
(` in crores)
1 Shri Anil Rai Gupta (as Managing 77,425,200 12.35% 77,425,200 12.36% -
Trustee of ARG Family Trust)
2 Shri Surjit Kumar Gupta (as Trustee of 36,432,180 5.82% 36,432,180 5.82% -
SKG Family Trust)
3 QRG Investments and Holdings Limited 258,600,540 41.28% 68,741,660 10.98% 276.19%
4 QRG Enterprises Limited - - 189,858,880 30.31% -100.00%
Total 372,457,920 59.45% 372,457,920 59.47% -
(` in crores)
1 Shri Anil Rai Gupta (as Managing 77,425,200 12.36% 77,425,200 12.37% -
Trustee of ARG Family Trust)
2 Shri Surjit Kumar Gupta (as Trustee of 36,432,180 5.82% 36,432,180 5.82% -
SKG Family Trust)
3 QRG Investments and Holdings Limited 68,741,660 10.98% 68,741,660 10.98% -
4 QRG Enterprises Limited 189,858,880 30.31% 189,858,880 30.33% -
Total 372,457,920 59.47% 372,457,920 59.49%
e) 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, 2022:
` 1/- per share). Each holder of equity shares is entitled to one vote per shares. 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.
f) Details of shareholders holding more than 5% shares in the Group is set out below (representing legal and beneficial
ownership):
(` in crores)
Name of Shareholders As at March 31, 2023 As at March 31, 2022
No. of shares % holding No. of shares % holding
Shri Anil Rai Gupta as Managing Trustee of ARG 77,425,200 12.35 77,425,200 12.36
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 30.31
QRG Investments and Holdings Limited 258,600,540 41.28 68,741,660 10.98
Nalanda India Equity Fund Limited 33,044,930 5.28 33,044,930 5.28

Consolidated

g) 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 31 (6).
(B) Other Equity

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Capital reserve 7.63 7.63
Securities premium 148.15 121.50
Share option outstanding account 2.30 0.53
General reserve 722.72 722.72
Retained earnings 5,681.16 5,086.98
Foreign currency translation reserves 0.84 0.90
Total other equity 6,562.80 5,940.26
a) Capital reserve 7.63 7.63
b) Securities premium
Add: Exercise of Employee stock purchase plan - proceeds received 26.65 31.12
c) Stock options outstanding account
Add: Options recognised during the year 3.23 1.15
Less: Options vested and exercised during the year (1.46) (1.26)
d) General reserve 722.72 722.72
e) Retained earnings
Opening balance 5,086.98 4,292.09
Net profit for the year 1,071.73 1,196.47
Items of other comprehensive income recognised directly in retained
earnings
Re-measurement gains/(losses) on defined benefit plans (net of tax) (7.67) 5.52
Dividends
Final Dividend of ` 4.50 per share for FY 2021-22 (` 3.50 per share for FY (281.93) (219.21)
2020-21)
Interim dividend of ` 3 per share for FY 2022-23 (` 3.00 per share for FY 2021- (187.95) (187.89)
22)
Closing balance 5,681.16 5,086.98
f) Foreign currency translation reserves
Exchange difference on translation of financial statements of foreign operations (0.06) 0.66
0.84 0.90
(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.

(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 requirement to mandatorily transfer a specified percentage of the net profit to general
reserve before declaration of dividend 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) 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.
Net of shares 41,960 (March 31, 2022: 41,960) held by employee welfare trust included in the financial statements
(e) 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.
(f) Foreign currency translation reserve

Exchange differences arising on translation of financial statements foreign operations are recognized 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 of/liquidated or classified as held for sale.
14. Non Current Financial Liabilities

(A) BORROWINGS (valued at amortised cost)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Term loans from bank (secured) {refer note (a) to (d) below} - 395.49
Term loans others (secured) - 0.04
- 395.53
Less: Current maturity of long term borrowing {refer note 17 (A)} - 121.12
Less: Interest accrued (included in current borrowing) - 1.84
Non-current portion - 272.57
Notes:
(a) The Group has availed secured loan of ` Nil (March 31, 2022: ` 250 crores), carrying interest rate of (3 months TBill rate
plus (288 - 488 base points)) against the sanctioned term loan amount of ` Nil (March 31, 2022: ` 250 crores) from CITI
Bank N.A. The Group has repaid its loan during the year. The current outstanding amount against the loan is ` Nil (March
31, 2022: ` 203.13 crores). 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 was repayable in 16 equated
quarterly instalments commencing from 15th month from first drawdown date of April 21, 2020. This term 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 (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.
(b) The Group has availed secured loan of ` Nil (March 31, 2022: ` 250 Crores) carrying interest rate of 4 - 6 %, against the
sanctioned amount of ` Nil (March 31, 2022: ` 350 crores) from HDFC Bank Limited. The Group has repaid its loan during

Consolidated

the year. The current outstanding amount against the loan is ` Nil (March 31, 2022: ` 190.52 crores). 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 date of May 29, 2020. The term loan was repayable in quarterly instalments over the period
of 5 years as per terms of agreement starting from [1st Loan of ` 120 Crores (June 2020- May 2025) and 2nd Loan of ` 130
Crores (April 2021- May-2025)]. This loan was 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.
(c) The Group was required to maintain the Debt Covenants i.e., Fixed assets coverage ratio, Debt service coverage ratio,
gearing ratio, leverage ratio and interest coverage ratio and Group had complied with all such covenants in the previous year
i.e. March 31, 2022.
(d) During the previous year, The Company had borrowings from banks and financial institutions on the basis of security of
current assets. The Company had complied with the requirement of filing of monthly/ quarterly returns/statements of current
assets with the banks or financial institutions, as applicable, and these returns were in agreement with the books of accounts
for the year ended March 31, 2022. During the year, the Company has not been sanctioned working capital limits in excess
of ` 5 crores, in aggregate from banks and financial institutions on the basis of security of current assets and accordingly, the
quarterly returns or statements are not required to be filed with banks or financial institutions.
(e) As on the balance sheet date there is no default in repayment of loans and interest.
(f) The borrowings obtained by the Group from banks and financial institutions had been applied for the purposes for which such
loans were taken. In respect of the term loans which were taken in the previous years, those were applied in the respective
years for the purpose for which the loans were obtained.
(g) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory
period.
(B) LEASE LIABILITIES

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Lease Liabilities {refer note 31(2)} 186.91 178.82
186.91 178.82
(C) OTHER FINANCIAL LIABILITIES (valued at amortised cost)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Employees payable pursuant to employee stock purchase plan 0.54 0.56
Long Term Employee Retention scheme 0.67 0.66
Employees ownership plan 3.23 -
Other Liabilities (retention money) 2.77 2.74
7.21 3.96
15. Non Current Provisions

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Provision for Gratuity 4.15 -
Product warranties and E-waste {Refer note 18(a)} 132.57 76.25
136.72 76.25

16. Income Taxes

(` in crores)
As at As at
March 31, 2023 March 31, 2022
The major components of income tax expense for the year ended March 31, 2023
and March 31, 2022 are:
(a) Income tax expense in the statement of profit and loss comprises:
Current tax charge 361.20 408.83
Adjustment in respect of current tax of previous year 3.24 (10.25)
Total current income tax 364.44 398.58
Deferred tax charge/(credit)
Relating to origination and reversal of temporary differences 10.89 11.51
Income tax expense reported in the statement of profit or loss 375.33 410.09
(b) Other Comprehensive Income
Current income tax related to items recognised in OCI during the year:
Current income tax on re-measurement loss on defined benefit plans 2.58 (1.86)
Income tax related to items recognised in OCI during the year 2.58 (1.86)
(c) Reconciliation of tax expense and the accounting profit multiplied by
India’s domestic tax rate:
Accounting Profit before tax 1,447.06 1,606.56
Applicable tax rate 25.168% 25.168%
Computed Tax Expense 364.20 404.34
Expenses not allowed for tax purpose 8.53 6.02
Additional allowances for tax (0.08) (0.03)
Provisions for litigation 2.97 -
Utilisation of previously unrecognised tax losses - (0.24)
Others (0.29) -
Income tax charged to Statement of Profit and Loss at effective rate of 25.94% 375.33 410.09
(March 31, 2022: 25.53%) {Refer Note (ii) below}
(d) Deferred tax liabilities comprises:
(` in crores)
Balance Sheet Statement of profit and loss
Accelerated depreciation for tax purposes 393.84 382.72 11.12 14.09
Right of Use as per Ind AS 116 52.68 52.79 (0.11) 21.86
Lease liability as per Ind AS 116 (56.15) (55.59) (0.56) (22.71)
Expenses allowable on payment basis (9.82) (12.69) 2.87 (1.04)
Allowance for doubtful debts (22.06) (18.04) (4.02) (0.59)
Other Items giving rise to temporary differences 3.02 1.43 1.59 (0.10)
Deferred tax liabilities (net) 361.51 350.62 10.89 11.51
(e) Deferred tax liabilities (net)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Opening balance as per last balance sheet 350.62 339.11
Deferred tax charged/(credited) to profit and loss account during the year 3.17 3.10
Adjustment in respect of deferred tax of previous year 7.72 8.41

Consolidated

Notes:
(i) The Group has unabsorbed capital loss of ` 390.84 crores as on March 31, 2023 (March 31, 2022: ` 369.61 crores) out of
which capital loss of ` 219.75 crores will expire in financial year 2023-24, capital loss of ` 122.30 crores will expire in financial
year 2025-26, capital loss of ` 27.51 crores will expire in financial year 2029-30 and capital loss of ` 21.27 crores will expire
in financial year 2030-31, 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 ` 89.28 crores (March 31, 2022: ` 84.56 Crore).
(ii) Effective tax rate has been calculated on profit before tax.
17. Current Financial Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(A) Short Term Borrowings
Current maturities of long term borrowings (Refer note 14(A)) - 121.12
Add: Interest accrued - 1.84
- 122.96
Current maturities of Lease liability {refer note 31(2)} 36.19 42.05
36.19 42.05
(C) Trade Payables
Total outstanding dues of micro enterprises and small enterprises; and 154.96 114.08
Total outstanding dues of creditors other than micro enterprises and 2,488.23 2,265.94
small enterprises
2,643.19 2,380.02
(` in crores)
Unbilled Not due Less than 1-2 years 2-3 years More than Total
dues 1 year 3 years
(i) MSME - 149.25 5.71 - - - 154.96
(ii) Others 120.11 2,168.34 188.62 9.77 - - 2,486.84
Total 120.11 2,317.59 194.33 9.77 - 1.39 2,643.19
(` in crores)
Unbilled Not due Less than 1-2 years 2-3 years More than Total
dues 1 year 3 years
(i) MSME - 112.68 1.40 - - - 114.08
(ii) Others 83.02 1,971.00 207.24 3.29 - - 2,264.55
Total 83.02 2,083.68 208.64 3.29 - 1.39 2,380.02

Notes:
(i) Trade Payables include due to related parties ` 16.00 crores (March 31, 2022: ` 16.92 crores) {refer note 31(5)(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 31(5)}
(iv) The amounts falling in the category of more than 1 year are related to pending obligations on the part of the supplier as per
agreed terms and conditions mentioned in respective contracts.
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, 2023 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.
(` in crores)
March 31, 2023 March 31, 2022
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 154.96 114.08
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 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
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, 2022: ` Nil)
(D) OTHER FINANCIAL LIABILITIES (valued at amortised cost)

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Unpaid dividend {refer note (a)} 2.26 2.68
Other payables
Employees payable pursuant to employee stock purchase plan
Long Term Employee Retention Scheme 2.04 2.06
Creditors for capital goods 45.30 21.47
Deposits from customers 48.48 45.55
Retention Money 18.62 9.43
Other liabilities
Employee benefit obligations 121.54 110.25
Interest accrued - 5.94
Sales incentives payable 381.23 319.29
Others {refer note (b)} 5.38 8.81
624.85 525.48

Consolidated

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 ` 0.26 crores (March 31, 2022: ` 0.26 crores) 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) Other includes amount against E-waste liability {refer note 18(a)(ii)}.
18. Current Provisions

(` in crores)
As at As at
March 31, 2023 March 31, 2022
i) Provision for employee benefits
Gratuity {refer note no. 31(3)}
(A) 31.21 8.65
ii) Other provisions 31.21 8.65
Product warranties {refer note (a)}
Litigations {refer note (b)} 237.00 237.30
(B) 6.70 7.28
243.70 244.58
(A) + (B)
274.91 253.23
a) Provision for warranties
(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) The table below gives information about movement in Warranty and E-waste provisions:
(` in crores)
As at As at
March 31, 2023 March 31, 2022
As at April 01, 2022 313.55 284.80
Charged/(credited) to profit or loss
- additional provisions recognized (refer note 29) 292.44 211.27
- unused amounts reversed - -
- unwinding of discount {refer note no. 27} 5.78 6.24
As at March 31, 2023 369.57 313.55
Non-current portion (refer note no. 15) 132.57 76.25
b) Provision for litigations

Provision for litigation amounting to ` 6.70 Crores (March 31, 2022: ` 7.28 Crores) is created against demands raised
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, 2023 March 31, 2022
As at April 01, 2022 7.28 12.93
Charged/(credited) to profit or loss 2.97 -
As at March 31, 2023 6.70 7.28
Non-current portion - -
19. Current Tax Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Current tax liabilities (net of advance tax and tax deducted at source amounting to 32.26 62.83
` 334.38 crores (March 31, 2022 ` 346.86 crores)
32.26 62.83
20. Other Current Liabilities

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Advance against Land 0.50 -
Others
Goods and Services Tax Payable 55.69 123.45
Other statutory dues payable 83.53 66.06
139.72 189.51
21. Revenue from Operations:

(` in crores)
As at As at
March 31, 2023 March 31, 2022
Revenue from contract with customers:
Sale of products 16,737.09 13,756.45
Sales of services 68.63 79.00
(A) 16,805.72 13,835.45
Other operating revenues
Export Incentive 10.13 10.66
Scrap sales 94.88 92.37
(B) 105.01 103.03
Total revenue from operations (A) + (B) 16,910.73 13,938.48
(i) Timing of revenue recognition
Goods transferred at a point in time 16,831.97 13,848.82
Services transferred over the time 68.63 79.00
Add: Export Incentive 10.13 10.66

Consolidated

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(ii) Disaggregation of revenue based on product or service
Switchgears 2,115.45 1,790.92
Cables 5,529.16 4,642.77
Lloyd Consumer* 3,394.80 2,272.78
Others 950.14 758.72
*Includes revenue from installation services and service-type
warranties.
(iii) Revenue by location of customers
India 16,415.02 13,423.38
(iv) Reconciliation of revenue recognised in statement of profit
and loss with contracted price
Revenue as per contracted price 17,009.55 14,014.85
Less: Cash discount (108.95) (87.03)
(v) Performance obligation

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 consolidated prices. The performance 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, 2023 and expected time to recognise the same as revenue is as follows:
(` in crores)
March 31, 2023 March 31, 2022
Within one year 84.42 57.03
More than one year 4.10 4.99
88.52 62.02
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 expected to be recognised within one year. During the year ended March 31, 2023, revenue recognised
from amount included in contract liability at the beginning of year is ` 57.03 crores (March 31, 2022: ` 34.94 crores).

(vi) Disclosure pursuant to Appendix C of Ind AS 115

The Group was awarded a contract for replacement of existing conventional street/park lights with LED street/park lights
by a Municipal Corporation in April 2017. As per the agreement, the Group shall also be responsible for the operation and
maintenance of LED street/park lights for a period of 7 years after installation. The consideration received by the Group under
the contract is based on the energy savings resulting from the LED street/park lights. The revenue recognised during the year
and the contract assets balance as at year-end from such contract amounts to ` 45.89 Crores (March 31, 2022: ` 45.43
crores) and ` 43.57Crores (March 31, 2022: ` 56.83 crores) respectively.
22. Other Income

(` in crores)
March 31, 2023 March 31, 2022
Interest received on financial assets carried at amortised cost:
Deposits with banks 104.17 81.43
Investment 12.99 15.26
Others - Finance Income and Interest 6.08 7.76
Other non-operating income
Exchange fluctuations (net) 22.13 32.78
Liabilities no longer required written back 0.23 0.15
Lease rent concession {refer note 31(2)} 0.12 0.49
Profit on sale of Investments - 0.97
Discount on License utilised 9.43 8.65
Subsidy Income 2.36 4.83
Miscellaneous income 20.20 8.12
177.71 160.44
23. Cost of Raw Materials and Components Consumed

(` in crores)
March 31, 2023 March 31, 2022
Copper 3,361.20 2,604.08
Aluminium 1,009.60 922.07
General plastic and Engineering Plastic 438.02 365.51
Paints and chemicals 509.45 486.41
Steel 275.73 217.59
Other material 3,349.50 2,866.88
9,317.92 7,770.07
24. Purchase of Traded Goods

(` in crores)
March 31, 2023 March 31, 2022
Cables 1.02 0.77
Others 360.83 241.95
3,028.75 1,871.40

Consolidated

25. Change in Inventories of Finished Goods, Traded Goods and Work-in-Progress

(` in crores)
Inventories at the end of the year
Finished goods 1,764.20 1,359.07 (405.13)
Traded goods 851.64 581.31 (270.33)
Work in progress 165.56 202.06 36.50
Scrap materials 16.11 13.87 (2.24)
2,797.51 2,156.31 (641.20)
(` in crores)
Inventories at the beginning of the year
Finished goods 1,359.07 1,211.73 (147.34)
Traded goods 581.31 542.66 (38.65)
Work in progress 202.06 167.53 (34.53)
Scrap materials 13.87 14.91 1.04
2,156.31 1,936.83 (219.48)
26. Employee Benefits Expenses

(` in crores)
March 31, 2023 March 31, 2022
Salaries, wages, bonus, commission and other benefits 1,154.95 928.05
Contribution towards Provident Fund, Family Pension and ESI 47.72 40.45
Employee stock purchase plan expense {refer note no. 31(6)} 25.33 26.76
Gratuity expense {refer note no. 31(3)} 25.11 16.03
Staff welfare expenses 15.21 9.40
1,268.32 1,020.69
27. Finance Costs

(` in crores)
March 31, 2023 March 31, 2022
Interest expense on borrowings 5.14 25.10
Interest on income tax 4.17 7.01
Interest on lease liability {refer note no. 31(2)} 18.35 14.89
Miscellaneous financial expenses 0.18 0.17
Total interest expense 27.84 47.17
Unwinding of discount on long term provisions {refer note no. 18(a)(ii)} 5.78 6.24
Total Finance cost 33.62 53.41
28. Depreciation and Amortisation Expenses

(` in crores)
March 31, 2023 March 31, 2022
Depreciation of property, plant and equipment {refer note 3} 219.43 192.10
Amortization of intangible assets {refer note 4} 26.13 27.02
Depreciation of Right of use assets (refer note 3) 50.61 41.77
296.17 260.89

29. Other Expenses

(` in crores)
March 31, 2023 March 31, 2022
Consumption of stores and spares 53.25 54.68
Power and fuel 119.27 99.57
Job work and service charges 332.96 279.10
Rent 32.44 24.60
Repairs and maintenance:
Plant and machinery 41.04 15.35
Buildings 4.63 3.60
Others 68.62 52.57
Rates and taxes 2.80 3.25
Insurance 28.32 25.23
Trade mark fee and royalty 0.42 0.39
Travelling and conveyance 124.21 66.91
Communication expenses 5.99 6.66
Legal and professional charges 23.39 33.47
Payment to Auditors
Audit fee 1.35 1.35
Certification fee 0.03 0.01
Reimbursement of expenses 0.16 0.05
Payment to Tax Auditors
Tax audit fee 0.04 0.04
Contribution towards Corporate Social Responsibility (CSR) {refer note no. 31(7)} 26.68 23.66
Directors sitting fees 0.90 0.45
Exchange fluctuations (net) - -
Freight and forwarding expense 547.16 431.27
Advertisement and sales promotion 437.40 246.82
Commission on sales 120.66 98.30
Product warranties and after sales services (net of reversals) 292.44 211.27
Bank Charges 21.44 13.51
Loss on sale/discard of property, plant and equipment (net) 0.14 1.43
Miscellaneous expenses 33.63 29.06
2,321.89 1,733.06
29A. Net Impairment Losses on Financial and Contract Assets

(` in crores)
March 31, 2023 March 31, 2022
Impairment allowance for trade receivables considered doubtful 15.91 2.39
15.91 2.39

Consolidated

30A. Commitments and Contingencies

A Contingent liabilities (to the extent not provided for)
(` in crores)
As at As at
March 31, 2023 March 31, 2022
a. Claims/Suits filed against the Group not acknowledged as debts 6.83 7.07
(Refer point (i))
b. Disputed tax liabilities in respect of pending litigations before 54.71 74.88
appellate authorities
{Amount deposited under protest ` 13.04 crores (March 31, 2022: ` 29.13
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.
ii) The various disputed tax litigations are as under:

(` in crores)
Sl. Description {refer note below} Period to which Disputed Period to which Disputed
relates amount relates amount
As at As at
March 31, 2023 March 31, 2022
a) Excise/Customs/Service Tax
Demands raised by Excise and 2007-08 to 2009-10, 16.32 2007-08 to 2009-10, 16.34
Custom department. 2015-16 to 2017-18 2015-16 to 2017-18
and 2019-20 and 2019-20
b) Income Tax*
Disallowances/additions made by 2005-06, 2008-09 to 35.17 2005-06, 2009-10 to 38.78
the income tax department. 2014-15, 2016-17 to 2014-15, 2016-17,
2017-18 and 2019-20 2018-19 and 2019-20
c) Goods and Service Tax
Demands raised by GST 2017-18 1.23 2017-18 1.26
Department and 2019-20 and 2019-20
d) Sales Tax/VAT
Demands raised by Sales tax/VAT 2003-04 1.87 2005-06 to 2016-17 18.35
department. to 2016-17
e) Others
Demand of local area development 2001-02 0.12 2001-02 0.12
tax by the concerned authorities.
Demand of octroi along with penalty 2010-11 - 2010-11 0.03
in the state of Maharashtra by the
concerned authorities.
54.71 74.88

Notes:
The above figures are net off provisions made by the Group. The Group is contesting these demands and the management,
believe that its position will likely to be upheld in the appellate process. 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 18(ii)}.
The above amounts contain interest and penalty where included in the order issued by the department to the Company.
B Commitments
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Estimated amount of capital contracts remaining to be executed and not provided 476.73 59.27
for (Net of Advances amounting to ` 52.52 crores (March 31, 2022: ` 7.45 crores))
476.73 59.27
C Undrawn committed borrowing facility

a) During the Year, the Group has availed fund and non fund based unsecured working capital limit amounting to ` 1382.50
Crores under multiple banking arrangements from IDBI Bank Limited, Yes Bank Limited, Standard Chartered Bank
Limited, HSBC Bank, ICICI Bank Limited, IndusInd Bank Limited, HDFC Bank Limited, DBS Bank Limited and CITI Bank
N.A. An amount of ` NIL remain undrawn as at Mach 31, 2023.
D Other Litigations
The Group has some sales tax and other tax related litigation of ` 6.70 crores (March 31, 2022: ` 7.28 crores) against which
liability has been assessed as probable and adequate provisions have been made with respect to the same.
E The Group has outstanding obligation amounting to ` 0.51 crores (March 31, 2022: ` 0.52 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.
F The Group has export obligation of ` 158.68 crores (March 31, 2022: ` 34.95 crores) on account of import duty exemption of
` 8.72 crores (March 31, 2022: ` 1.50 crore) on capital goods under the Export Promotion Capital Goods (EPCG) and ` 0.15
crores Advance Authorisation scheme laid down by the Government of India. The Group expects to fulfil the obligation in due
course of time.

30B. Other Notes on Accounts
(1) Group information
(i) The Consolidated financial statement of the Group includes subsidiaries and joint venture are mentioned below:
S.N Name of the Country of Nature Ownership Year Net Assets, i.e., total Share in profit or loss Share in other Share in Total
entity incorporation interest Ended assets minus total Comprehensive Income Comprehensive income
held by liabilities
the group
As % of Amount As % of Amount As % of Amount As % of Amount
consolidated (` In consolidated (` In consolidated other (` In consolidated (` In
Net 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 India Parent Company Mar 31, 100% 6,614.48 100% 1,074.95 99% (7.67) 100% 1,067.28
Limited 2023
Mar 31, 100% 5,988.64 100% 1,194.73 89% 5.52 100% 1,200.25
2022
Integrated Report
(II) Foreign Subsidiaries having no non-controlling interest
1 Havells Holdings Isle of Man Wholly Owned 0.00% Mar 31, 0% - 0% (0.04) 0% - 0% (0.04)
Limited Subsidiary (WOS), 2023
(dissolved on
October 27, 2022)
0.00% Mar 31, 0% 4.10 0% 0.32 -1% (0.07) 0% 0.25

2022
2 Havells China Wholly Owned 100.00% Mar 31, 0% 11.42 0% (0.32) 1% (0.06) 0% (0.38)
Guangzhou Subsidiary 2023
International
Limited
Statutory Reports
100.00% Mar 31, 0% 11.78 0% 1.42 12% 0.73 0% 2.15

2022
Consolidation Mar 31, 0% (0.45) 0% (2.85) 0% - 0% (2.85)

adjustment 2023
Consolidation Mar 31, 0% (1.63) 0% - 0% - 0% -

adjustment 2022
Total - March 31, 100% 6,625.45 100% 100% - 7.73 100% 1,064.00
2023 1,071.73
Total - March 31, 100% 6,002.89 100% 1,196.47 100% 6.18 100% 1,202.65
Consolidated
2022
Integrated Annual Report 2022-23

Financial Statements
305
31. Other Notes on Accounts

1 During the year, the Group has capitalised the following 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, 2023 March 31, 2022
Cost of material consumed 13.33 11.35
Employee benefits expense* 11.76 6.61
Other expenses 4.83 0.56
29.92 18.52
*Employee benefits expense includes overheads
2 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. Payment made towards short term leases of low value assets (lease of
assets worth less than ` 2 Lacs) other than building and warehouse are recognized in the statement of Profit and Loss as
rental expenses over the tenure of such 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 1, 2021 224.57 122.89 347.46
Depreciation of Right of use assets (refer note 28) (2.53) (39.24) (41.77)
Depreciation on Right of use assets (refer note 28) (2.54) (48.07) (50.61)
(iii) The following is the carrying value of lease liability and movement thereof:
(` in crores)
Particulars Amount
Balance as at April 1, 2021 130.66

Consolidated

(` in crores)
Particulars Amount
Current maturities of Lease liability {refer note 17(B)} 36.19
Non-Current Lease Liability {refer note 14(B)} 186.91
223.10
(iv) The maturity analysis of lease liabilities are disclosed in Note 31(9).
(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, 2023 March 31, 2022
Depreciation charge of right-of-use assets - leasehold building 48.07 39.24
Depreciation charge of right-of-use assets - leasehold land 2.54 2.53
Finance cost accrued during the year (included in finance cost) (refer note 27) 18.35 14.89
Expense related to short term leases (included in other expense) (refer note 29) 32.44 24.60
(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) The Group has received the Covid-19-related rent concessions for lessees amounting to ` 0.12 crores (March 31, 2022:
` 0.49 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 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, 2023 March 31, 2022
Acquisition of right of use assets 53.20 134.56
Disposals of right of use assets (4.22) (6.59)
3 Gratuity and other post-employment benefit plans

Disclosures pursuant to Ind AS - 19 “Employee Benefits” (notified 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) are given below:
Contribution to Defined Contribution Plan, recognised as expense for the year is as under:
(` in crores)
March 31, 2023 March 31, 2022
Employer's Contribution towards Provident Fund (PF) and National Pension Scheme 47.40 40.12
(NPS)
Employer's Contribution towards Employee State Insurance (ESI) 0.32 0.33
47.72 40.45

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 at 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.
The following tables summaries the components of net benefit expense recognised in the statement of profit or loss, the funded
status and amounts recognised in the balance sheet for the respective plans:
(` in crores)
March 31, 2023 March 31, 2022
a) Reconciliation of opening and closing balances of Defined Benefit
obligation
Present value of Defined Benefit obligation at the beginning of the year 140.29 129.22
Interest Expense 9.90 8.51
Current Service Cost 24.80 15.41
Benefit paid (6.64) (6.68)
Remeasurement of (Gain)/loss recognised in other comprehensive income
Present value of Defined Benefit obligation at year end 177.81 140.29
b) Reconciliation of opening and closing balances of fair value of plan
assets
Fair value of plan assets at beginning of the year 131.64 110.97
Expected return on plan assets 9.59 7.89
Employer contribution 8.65 18.25
Remeasurement of Gain/(loss) in other comprehensive income
Return on plan assets excluding interest income (0.79) 1.21
Benefits paid (6.64) (6.68)
Fair value of plan assets at year end 142.45 131.64
c) Net defined benefit asset/(liability) recognised in the balance sheet
Fair value of plan assets 142.45 131.64
Present value of defined benefit obligation (177.81) (140.29)
Amount recognised in Balance Sheet- Asset/(Liability) (35.36) (8.65)
Current portion {refer note 18(i)} (31.21) (8.65)
Non-current portion (4.15) -
d) Net defined benefit expense (recognised in the Statement of profit and
loss for the year)
Current service cost 24.80 15.41
Interest cost (net) 0.31 0.62
Net defined benefit expense debited to statement of profit and loss 25.11 16.03
e) Remeasurement (gain)/loss recognised in other comprehensive income
Return on Plan assets excluding amounts included in net interest expense 0.79 (1.21)
Recognised in other comprehensive income 10.25 (7.38)
f) Broad categories of plan assets as a percentage of total assets
Insurer managed funds 100% 100%

Consolidated

g) Principal assumptions used in determining defined benefit obligation

(` in crores)
March 31, 2023 March 31, 2022
Employees Employees
Mortality Table (LIC) 2012-14 2012-14
(Ultimate) (Ultimate)
Discount rate (per annum) 7.37% 7.23%
Salary Escalation 9.50% 9.00%
Attrition Rate 7.00% 7.00%
h) Quantitative sensitivity analysis for significant assumptions is as below:

Increase/(decrease) on present value of defined benefits obligations at the end of the year
(` in crores)
March 31, 2023 March 31, 2022
Employees Employees
Discount rate
Increase by 0.50% (5.89) (4.90)
Decrease by 0.50% 6.71 5.59
Salary increase
Increase by 0.50% 6.58 5.49
Decrease by 0.50% (5.89) (4.91)
Attrition rate
Increase by 0.50% (0.75) (0.57)
Decrease by 0.50% 0.58 0.65
i) Maturity profile of defined benefit obligation

(` in crores)
March 31, 2023 March 31, 2022
Employees Employees
Within the next 12 months (next annual reporting period) 12.75 10.22
Between 2 and 5 years 75.71 65.53
More than 5 years 248.85 198.35
Total expected payments 337.31 274.10
j) The average duration of the defined benefit plan obligation at the end of the reporting period is 21.87 years (March 31, 2022:
21.66 years).
k) The Group expects to contribute ` 29.08 crores (March 31, 2022: ` 8.65 crores) to the plan during the next financial year.
l) 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.
m) 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.
n) 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.
o) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period

4 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 purposes, the Group 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
(` in crores)
March 31, 2023 March 31, 2022
A. Revenue from operations
Segment Revenue (Sales and other operating revenue)
Switchgears 2,120.19 1,795.97
Cables 5,532.60 4,645.08
Others 950.27 758.73
16,910.73 13,938.48
Inter Segment Sale - -
Total segment revenue 16,910.73 13,938.48
B. Results
Segment results

Consolidated

(` in crores)
March 31, 2023 March 31, 2022
Cables 524.67 540.50
Lloyd Consumer (223.27) (73.46)
Others 35.00 56.90
Segment profit 1,559.95 1,737.28
Reconciliation of segment operating profit to operating profit
Unallocated:
Other unallocable expenses net off (256.98) (237.75)
Other unallocable income 177.71 160.44
Operating Profit 1,480.68 1,659.97
Finance Costs (refer note 27) (33.62) (53.41)
Profit before exceptional items and tax 1,447.06 1,606.56
Exceptional Items
a) Loss due to fire 112.52 -
b) Insurance claim receivable (112.52) -
Net Profit/(Loss) for the year before tax and after exceptional items 1,447.06 1,606.56
Income tax expense (refer note 16) (375.33) (410.09)
Profit after tax 1,071.73 1,196.47
C. Reconciliations to amounts reflected in the financial statements
Segment Assets
Cables 1,309.14 1,126.72
Others 285.57 239.47
Segment operating assets 8,275.84 6,907.02
Reconciliation of segment operating assets to total assets
Cash and bank balance {refer note, 6(C), 10(C) and (D)} 1,985.41 2,568.18
Fixed deposits with financial institutions {refer note 6(A) and 10(A)} 200.87 272.68
Other unallocable assets 695.32 775.33
Total assets 11,157.44 10,523.21
Segment Liabilities
Cables 859.26 739.65
Others 201.92 123.43
Segment operating liabilities 3,521.94 3,052.08
Reconciliation of segment operating liabilities to total liabilities
Borrowings {refer note 14(A) and 17(A)} - 393.69
Lease Liabilities{refer note 14(B) and 17(B)} 223.10 220.87
Deferred tax liability {refer note 16(d)} 361.51 350.62
Current tax liabilities (net){refer note 19} 32.26 62.83
Other unallocable liabilities 393.18 440.23

(` in crores)
March 31, 2023 March 31, 2022
Other non-current assets
Cables 27.78 4.11
Others 2.64 0.10
45.99 5.84
Unallocable assets 32.95 37.09
78.94 42.93
Capital Expenditure
Cables 19.67 21.04
Others 6.88 7.43
522.38 227.79
Unallocable capital expenditure 48.74 28.30
571.12 256.09
Depreciation and Amortization Expenses
Cables 64.38 61.01
Others 13.10 11.54
296.17 260.82
Non-cash expenses (net) other than depreciation
Cables 6.47 (1.10)
Others 0.89 0.07
18.57 14.11
Impairment allowance on other assets - -
18.57 14.11
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
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 16,425.15 13,434.04
Revenue-Overseas Market 485.58 504.44
16,910.73 13,938.48
Geographical Segment assets
Within India 11,099.58 10,443.61

Consolidated

(` in crores)
March 31, 2023 March 31, 2022
11,157.44 10,523.21
Geographical Non-current assets
Within India 3,858.66 3,532.52
3,866.00 3,533.75
Note: Non Current assets for this purpose excludes investment in subsidiaries, Contract assets, non current financial assets and
non current tax assets
Notes:
(i) Finance income and costs on financial assets are not allocated to individual segments as the underlying instruments are
managed at Group level.
(ii) Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also
managed at Group level.
(iii) Capital expenditure consists of additions of property, plant and equipment, Capital work in progress and intangible assets.
(iv) There is no single external customer accounting to 10 per cent or more of an Group’s revenues
5 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 disclosed
below:
(A) Names of related parties and description of relationship:

Related party where control exists
Subsidiary Companies Relationship
1 Havells Holdings Limited Wholly Owned Subsidiary (WOS),
(dissolved on October 27, 2022)
2 Havells Guangzhou International Limited Wholly Owned Subsidiary (WOS)
(B) Names of other related parties:
(i) Enterprises having significant influence over (iv) Key Management Personnel
Group
QRG Enterprises Limited Shri Anil Rai Gupta, Chairman and Managing Director
QRG Investment and Holding Limited Shri Rajesh Kumar Gupta, Director
(Finance) and Group CFO
Shri Ameet Kumar Gupta, Wholetime Director
(ii) Enterprises in which directors are having Shri Siddhartha Pandit, Wholetime Director
significant influence
QRG Foundation Shri Sanjay Kumar Gupta, Company Secretary
Guptajee & Group Non Executive Directors
SRF Limited Smt. Pratima Ram (retired w.e.f June 30, 2021)
Manipal Health Enterprises Pvt. Ltd Shri Puneet Bhatia
QRG Medicare limited (till November 26, 2021) Shri T V Mohandas Pai
Shri Surjit Kumar Gupta
(iii) Employee benefit trust for the benefited Shri Jalaj Ashwin Dani
employees

Havells Employees Welfare Trust Shri U K Sinha

Shri B P Rao
Shri S S Mundra
Shri Vivek Mehra
Smt Namrata Kaul
Shri Ashish Bharat Ram (appointed w.e.f. May 20, 2021)
(v) Other Related Parties
Shri Rakesh Mehrotra
- HKHR Ventures LLP (Partner)
Shri Yogesh Kumar Gupta
- Eastern Distributors (Partner)
- Gupta Enterprise (Partner)
- YKG Enterprises (Partner)
- O.P. Gupta & Co.(Partner)
- OPG Travels (Partner)
(C) Transactions during the year
(` in crores)
March 31, 2023 March 31, 2022
(i) Sale of products (refer note (c) below)
Enterprises in which directors are having significant influence
Manipal Health Enterprises Pvt. Ltd - 0.01
OP Gupta and Company 1.63 0.77
1.63 0.78
(ii) Purchase of goods and stores & spares
17.87 3.93
(iii) Sale of products (refer note (c) below) 7.21 -
SRF Limited 7.21 -
(iv) Commission on sales (refer note (c) below)
Guptajee and Company 20.65 16.18
YKG Enterprises 2.95 2.95
82.78 69.45
(v) Rent/Usage Charges Paid
Enterprises having significant influence over Group
QRG Enterprises Limited 29.52 27.07
(vi) Reimbursement of expenses paid
QRG Medicare limited - 0.02
1.15 0.47
(vii) CSR Contribution

Consolidated

(` in crores)
March 31, 2023 March 31, 2022
QRG Foundation 9.70 3.63
(viii) Contribution to post employee benefit plan
Havells India Limited Employees Gratuity Trust 8.65 18.25
(ix) Managerial remuneration
Key Management Personnel
Contribution towards PF, Family Pension and ESI 2.01 1.82
Post-employment benefits 1.15 1.00
ESPP expense 13.01 15.16
Non-Executive Directors
Director sitting fees 0.90 0.45
Commission 1.80 0.93
Remuneration to other Related Parties
73.31 75.56
(D) Balances at the year end

(` in crores)
As at As at
March 31, 2023 March 31, 2022
(i) Amount Payables
Enterprises in which directors are interested
Guptajee & Co. 5.26 1.68
OP Gupta and Co. - 0.03
16.00 16.92
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 through
payment. There have been no guarantees provided or received for any related party receivables or payables. For the year
ended March 31, 2023, the Group has not recorded any impairment of receivables relating to amounts owed by related
parties (March 31, 2022: ` 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) As at March 31, 2023, the Group has not granted any loans to the promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person (March 31, 2022: Nil),
c) Transactions with related parties are reported gross of Goods and Service Tax.

6 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) regulations, 2021:
(a) Havells Employee Long Term Incentive Plan 2014: In accordance with this scheme, 41,817 (March 31, 2022: 68,356)
share options of Re. 1 each were granted, out of which 41,415 (March 31, 2022: 68,356) share options of Re. 1 each
were vested and allotted on June 03, 2022 (March 31, 2022: June 05, 2021) to eligible employees at ` 1,289.85 (March
31, 2022: ` 1,074.10) 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 ` 2.23 crores (March 31, 2022: ` 2.94 crores) has been recognised as employee stock purchase
plan expense (refer note 26).
(b) Havells Employee Stock Purchase Plan 2015: In accordance with this scheme, 150,000 (March 31, 2022: 210,000)
share options of ` 1 each were granted, vested and allotted on June 03, 2022 (March 31, 2022: June 05, 2021) at
` 1,289.85 (March 31, 2022: ` 1,074.10) 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 ` 19.35 crores (March 2022: ` 22.56 crores) has been recognised as employee stock
purchase plan expenses (refer note 26).
(c) Havells Employee Stock Purchase Plan 2016: In accordance with the said scheme, 24,942 (March 31, 2022: 8,454)
share options of Re. 1 each were granted to eligible employees with graded vesting in three years starting from 2022.
During the year, 13534 equity shares of Re. 1 each (March 31, 2022: 11705 equity shares) were allotted at ` 1,289.85
(March 31, 2022: ` 1,074.10) per share on June 03, 2022. Accordingly, a sum of ` 2.69 crores (March 31, 2021: 1.26
crores) has been recognised as employee stock purchase plan expense refer note 26 and balance outstanding of ` 1.48
crores (March 31, 2022: 0.53 crores) refer note 13.’
(d) Havells Employee Stock Purchase Plan 2022: In accordance with the said scheme, 17,733 (March 31, 2022: NIL) share
options of ` 1 each were granted to eligible employees with graded vesting in three years starting from 2022. During
the year, 1722 equity shares of Re. 1 each (March 31, 2022: NIL equity shares) were allotted at ` 1,348.55 (March 31,
2022: NIL) per share on Nov 03, 2022. Accordingly, a sum of ` 1.06 crores (March 31, 2021: NIL) has been recognised
as employee stock purchase plan expense refer note 26 and balance outstanding of ` 0.82 crores (March 31, 2022:
NIL) refer note 13.’
(i) Set out below is a summary of options granted and vested during the year under the plan
(` in crores)
Summary of Stock Options 2022-23 2021-22
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 10,023 - 13,274 -
Options granted during the year 234,492 1,290.34 286,810 1,074.10
Options vested and exercised during the year (206,671) 1,290.34 (290,061) 1,074.10
Options lapsed during the year (3,153) - - -
Options outstanding at the end of the year 34,691 - 10,023 -
The weighted average share price at the date of exercise of options exercised during the year ended March 31, 2023 was
` 1290.34 per share (March 31, 2022: ` 1074.10) per share. For share options outstanding at the end of the year, exercise price
ranges from 763.50 to 1348.55.

Consolidated

(ii) Share options outstanding at the end of the year have the following expiry dates and exercise prices:
(` in crores)
Particulars 2022-23 2021-22
ESPP Scheme ESPP 2022 ESPP 2016 ESPP 2016 ESPP 2016
Grant date Oct 03, 2022 May 05, 2022 May 22, 2021 March 31, 2020
Expiry date 2023-24 to 2023-24 and 2022-23 and 2022-23
2026-27 2024-25 2023-24
Outstanding share options 16011 18680 5636 4387
Weighted average remaining contractual life of 4 years 2 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, 2023 was within range of ` 1271.53 to ` 1348.16
per share (March 31, 2022 was within range of ` 1059.27 to ` 1073.90 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 (ESPP 2016):

(` in crores)
Expected Price volatility of the Group's share 10.10% to 15.29% 10.69% - 14.16%
Expected Dividend Yield 0.70% 0.68%
Share price at the grant date ` 1289.85 ` 1074.10
Risk free interest rate 7.15% 6.20%
The Model inputs for options granted (ESPP 2022):

(` in crores)
Expected Price volatility of the Group's share 7.78% to 15.30% -
Expected Dividend Yield 0.70% -
Share price at the grant date ` 1348.55 -
Risk free interest rate 7.41% -
(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 2.23 2.94
Havells Employees Stock Purchase Plan 2022 1.06 -
Total expense recognised in the statement of profit and loss account as a part 25.33 26.76
of employee benefit expense:
7 Corporate Social Responsibility

As per provisions of section 135 of the Companies Act, 2013, the Group has to incur at least 2% of average net profits of
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, 2023 March 31, 2022
Contribution to Reimagining Higher Education Foundation for building educational 13.00 11.00
infrastructure
Contribution to QRG Foundation for providing mid day meal, promotion of 9.70 3.63
sanitation & hygiene and free coaching
Contribution to Aga Khan Foundation for protection of national heritage - 4.12
Others: for development of healthcare infrastructure, trees plantation, etc. 4.19 4.13
Accrual towards unspent obligation in relation to
Ongoing Project - -
Other than ongoing Project - -
Total 26.89 22.88
Add: Carried forward from previous year 0.72 1.50
Amount recognised in Statement of Profit and Loss 26.68 23.66
Amount required to be spent as per section 135 of the Act 26.68 23.66
Amount approved by the Board to be spent during the year 26.68 23.66
Amount spent during the year on

(i) Construction/acquisition of assets 14.55 -
(ii) Contribution to Trust/Universities/Society 8.30 15.19
(iii) On purpose other than above 4.04 7.69
Total Amount Spent 26.89 22.88
Excess spent from previous year utilised during the current year 0.72 1.50
Amount yet to be spent - -
Total 27.61 24.38
Total 26.68 23.66
Details of ongoing CSR projects under Section 135(6) of the Act

(` in crores)
Year Opening Balance Amount required Amount spent during the year Closing Balance
With the In Separate CSR to be spent From Group’s From Separate CSR With the In Separate
Group Unspent A/c during the year bank account Unspent account Group CSR Unspent
account
FY 2020-21 - - 16 4.00 - 12 -
FY 2021-22 - 12.00 - - 4.00 - 8.00
FY2022-23 - 8.00 - - 4.00 - 4.00
Note: The group had earned an interest of INR 0.41 crores (0.48 crores in March 2022) on the funds in CSR unspent bank account
during the year, which is proposed to be spent in FY 2023-24 on ongoing project.
Details of CSR expenditure under Section 135(5) of the Act in respect of unspent amount other than ongoing projects
(` in crores)
Year Opening Balance Amount deposited in Amount required Amount spent Closing Balance
unspent Specified Fund of Schedule VII to be spent during during the year unspent
of the Act within 6 months the year
FY 2020-21 - - 23.66 23.66 -
FY2022-23 - - 26.68 26.68 -

Consolidated

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

(` in crores)
Year Opening balance Amount required to be spent Amount spent during Closing balance
excess spent during the year the year excess spent
FY 2020-21 1.50 23.66 22.88 0.72
FY2022-23 0.72 26.68 26.89 0.93
8 Fair value measurements

Set out below, is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments:
(` in crores)
March 31, March 31, March 31, March 31,
2023 2022 2023 2022
Financial instruments by category
Financial assets valued at amortized cost
Investments with financial institution 200.87 426.10 200.87 426.10
Cash and bank balances (Current) 1,870.17 2,547.98 1,870.17 2,547.98
Trade Receivables 975.53 768.93 975.53 768.93
Other Financial assets (Current) 116.89 29.89 116.89 29.89
Other Financial assets (Non-current) 149.08 42.18 149.08 42.18
3,312.54 3,815.08 3,312.54 3,815.08
Financial Liabilities valued at amortized cost
Trade Payables 2,643.19 2,380.02 2,643.19 2,380.02
Borrowings (current and non-current) - 395.53 - 395.53
Lease Liability (current and non current) 223.10 220.87 223.10 220.87
Other financial liabilities (non-current) 7.21 3.96 7.21 3.96
Other financial liabilities (current) 624.85 525.48 624.85 525.48
3,498.35 3,525.86 3,498.35 3,525.86
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 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, 2023
was assessed to be insignificant.
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
(` in crores)
are disclosed
Other Financial assets (Non-current) 149.08 - - 149.08
Other Financial assets (Current) 116.89 - - 116.89

value are disclosed
Borrowings (current and non-current) - - - -
(` in crores)
are disclosed
Other Financial assets (non-current) 42.18 - - 42.18
Other Financial assets (current) 29.89 - - 29.89

value are disclosed
Borrowings (non-current) 395.53 - - 395.53

Consolidated

9 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 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 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, 2023 and
March 31, 2022
(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
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
follows established risk management policies.
Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EUR, CNY and other currencies
including JPY, KES, NPR, CHF, LKR, MWK, AED, 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)
Gain/(loss) Impact on profit
March 31, 2023
Currency Currency Symbol before tax and equity
Foreign Currency Indian Rupees 5% increase 5% decrease
United States Dollar USD $(3.16) (259.58) (12.98) 12.98
EURO EUR € (0.04) (3.77) (0.19) 0.19
(` in crores)
Gain/(loss) Impact on profit
March 31, 2022
Currency Currency Symbol before tax and equity
Foreign Currency Indian Rupees 5% increase 5% decrease
United States Dollar USD $(4.22) (319.78) (15.99) 15.99
EURO EUR € (0.01) (0.98) (0.05) 0.05
Chinese RMB\CNY CNY CNY (0.57) 1.91 0.10 (0.10)
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, 2023 and March 31,
2022 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.
(` in crores)
March 31, 2023 March 31, 2022
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 0 - +0.50 (1.97)
0 - -0.50 1.97
(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.

Consolidated

(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.
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.
The group assigns the following internal credit ratings to each class of financial assets based on the assumptions, inputs and
factors specific to the class of the financial assets. The group provides for expected credit loss based on the following:
Internal Category Description of category Basis for recognition Basis for recognition
Rating of expected credit loss of expected credit loss
provision provision
Trade receivables and Loans and deposits
contract assets
VL 1 High quality assets, Assets where the counterparty has strong Lifetime expected credit 12-month expected
negligible credit risk capacity to meet the obligations and where losses (simplified approach) credit losses
the risk of default is negligible or nil
VL 2 Quality assets, low Assets where there is low risk of default and
credit risk where the counterparty has sufficient capacity
to meet the obligations and where there has
been low frequency of defaults in the past
VL 3 Doubtful assets, Assets where there is high risk of default 100 % provision is considered 100 % provision is
credit-impaired and there is no reasonable expectation of for doubtful assets, credit considered for doubtful
recovery,the group continues to engage in impaired assets, credit impaired
enforcement activity to attempt to recover
the receivable due. Where recoveries are
made, these are recognised in profit or loss.

(` in crores)
Unbilled Not due Less 6 1-2 2-3 More Total
dues than 6 months - years years than 3
months 1 year years
(i) Gross carrying amount – - 266.47 602.01 71.36 56.16 42.02 22.56 1,060.58
trade receivables
contract assets
(iv) Expected credit losses– - 0.01 0.21 5.03 17.83 42.02 22.56 87.66
trade receivables
(v) Expected credit losses– - - - - - - - -
contract assets
(vi) Carrying amount of - 266.46 601.80 66.33 38.33 - - 972.92
trade receivables (net of
impairment)


(` in crores)
Unbilled Not due Less 6 1-2 2-3 More Total
dues than 6 months - years years than 3
months 1 year years
(i) Gross carrying amount – - 525.87 162.15 47.61 62.98 23.75 18.31 840.67
trade receivables
contract assets
(iv) Expected credit losses– - 0.01 0.50 4.43 24.74 23.75 18.31 71.74
trade receivables
(v) Expected credit losses– - - - - - - - -
contract assets
(vi) Carrying amount of - 525.86 161.65 43.18 38.24 - - 768.93
trade receivables (net of
impairment)
(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.
The Group’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 is the carrying
amounts. The Group’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 Group.
(` in crores)
As at As at
March 31, 2023 March 31, 2022
Financial assets for which allowance is measured using 12 months Expected
Investment with financial institution 200.87 426.10
Cash and cash equivalents (Current) 465.16 775.84
Bank balances other than above (Current) 1,405.01 1,772.14
Other bank balances (Non-current)
Others Non Current financial assets 149.08 42.18
Others Current financial assets 116.89 29.89
2,337.01 3,046.15
Financial assets for which allowance is measured using Life time Expected
Trade Receivables 975.53 768.93
975.53 768.93
Balances with banks is subject to low credit risks due to good credit ratings assigned to these banks

Consolidated

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, 2023 March 31, 2022
Trade Receivables
Not past due 269.07 524.43
0 to 180 days due past due date 601.80 163.08
More than 180 days past due date 104.66 81.42
Total Trade Receivables 975.53 768.93
The following table summarizes the change in loss allowance measured using
the life time expected credit loss model:
As at the beginning of year 71.74 69.35
Addition and utilization during the year 15.91 2.39
As at the end of year 87.65 71.74
(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.
(` in crores)
As at March 31, 2023 Less than 1 year 1 to 5 years More than 5 years Total
Borrowings - - - -
Trade payables 2,643.19 - - 2,643.19
(` in crores)
As at March 31, 2022 Less than 1 year 1 to 5 years More than 5 years Total
Borrowings 139.40 289.23 - 428.63
Trade payables 2,380.02 - - 2,380.02
10 Capital Management
For the purposes of Group’s capital management, Capital includes equity attributable to the equity holders of the Group
and all 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, 2023 and March 31, 2022.

(` in crores)
Loans and borrowings ** - 428.63
Cash and cash equivalents {refer note 10(C)} (465.16) (775.84)
Net Debt (465.16) (347.21)
Equity/Net Worth 6,625.45 6,002.89

Total Capital 6,625.45 6,002.89
Capital and Net Debt 6,160.29 5,655.68

Gearing ratio (Net Debt/Capital and Net Debt) NA* NA*
Note: No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023
and March 31, 2022
* This ratio is not relevant for both year as the Cash and cash equivalents exceed the Loans and Borrowings.
** Borrowings does not includes Lease liabilities
11 Earnings per share

(` in crores)
March 31, 2023 March 31, 2022
a) Basic Earnings per share
Weighted average number of equity shares outstanding (Numbers) 626,488,642 626,250,618
during the year
Earnings per share-Basic (one equity share of Re. 1/- each) ` 17.11 19.11
b) Diluted Earnings per share

Weighted average number of equity shares for basic earning (Numbers) 626,488,642 626,250,618
per share
Effect of dilution
Weighted average number of Share options (Numbers) 44,860 10,610
Weighted average number of equity shares outstanding (Numbers) 626,533,502 626,261,228
during the year adjusted for the effect of dilution
Earnings per share- Diluted (one equity share of Re. 1/- each) ` 17.11 19.10
12 Dividend Paid and Proposed

(` in crores)
March 31, 2023 March 31, 2022
Dividend declared and paid during the year:
Final Dividend of ` 4.50 per share for FY 2021-22 (` 3.50 per share for FY 2020-21) 281.93 219.21
Interim dividend of ` 3.00 per share for FY 2022-23 (` 3.00 per share for 187.95 187.89
FY 2021-22)
469.88 407.10
Proposed Dividends on equity shares:
Final Dividend recommended by the board of directors for the year ended March 281.93 281.84
31, 2023 ` 4.50 per share of Re. 1 each (March 31, 2022: ` 4.50 per share of Re. 1
each) subject to approval of shareholders in the ensuing annual general meeting.
281.93 281.84

Consolidated

Note: Proposed dividends on equity shares are subject to approval at the annual general meeting and are not recognised as
liability as at reporting date.
13 Fire Incident in Neemrana Plant

There was a fire at Neemrana plant of the Group in July 2022 resulting in destruction/ damage of property, plant and
equipment and inventories with book value of ` 47.53 crores and ` 64.99 crores respectively. The loss aggregating to
` 112.52 crores has been accounted for in the books and disclosed as “Exceptional Items” in the consolidated statement
of profit and loss. The process relating to filing of claim with the insurance company has been completed for property, plant
and equipment and subsequent to the year-end, the Group has received interim payment amounting to ` 23.98 crores. The
process of filing the surveyor report in respect of claim for inventories is in progress. The Group has adequate insurance
coverage for the aforesaid loss and based on its assessment of the loss and the terms and conditions of the insurance
policies, the claim is fully admissible. Accordingly, ` 112.52 crores has been disclosed as part of “Exceptional Items” in the
consolidated statement of profit and loss. Also refer to Note 10 (E).”
14 The Group has not been declared as a Wilful Defaulter by any bank or financial institution or government or any
government authority.
15 Struck off Companies: Details of relationship with Companies struck off under Section 248 of Companies Act, 2013 or
Section 560 of the Companies Act, 1956:
(` in crores)
Name of the struck off Company Nature of Balance Balance Relation with
transaction outstanding as at outstanding as at struck off
with struck off March 31, 2023 March 31, 2022 Company
Company (Nos.) (Nos.)
Manilal Patel Private Limited Shares held by 35 number of shares 35 number of shares Shareholder
(CIN: U17110MH1947PTC005911) struck off Company of ` 1/- each of ` 1/- each
Multitech System Industrial Purchase ` 0.01 crore - Vendor
Automation Private Limited
U28910TN2014PTC097924
Naveli Decor Pvt. Ltd. Sales ` 0.04 crore - Customer
U52609UP2017PTC099523
Apostle Solutions Private Limited Sales ` 0.00 crore ` 0.01 crore Customer
U74110UP2007PTC032990
Samadhan Srbh Opc Private Limited Sales ` 0.00 crore - Customer
U74999UP2020OPC126709
Extreme Automation Pvt Ltd Sales ` 0.08 crore ` 0.08 crore Customer
U29220PN2010PTC135444
Ramesh Sales Corporation Pvt.Ltd. Sales ` 0.21 crore ` 0.21 crore Customer
U52390DL2014PTC266899
16 Additional regulatory information required by Schedule III of Companies Act, 2013
(i) Details of Benami property: No proceedings have been initiated or are pending against the Group for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(ii) Utilisation of borrowed funds and share premium:

The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
of the Group (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group shall:
of the Funding Party (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(iii) Compliance with number of layers of companies: The Group has complied with the number of layers prescribed under
the Companies Act, 2013.
(iv) Compliance with approved scheme(s) of arrangements: The Group has not entered into any scheme of arrangement
which has an accounting impact on current or previous financial year.
(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the
tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(vi) Details of crypto currency or virtual currency: The Group has not traded or invested in crypto currency or virtual currency
during the current or previous year.
(vii) Valuation of PP&E, intangible asset and investment property: The Group has not revalued its property, plant and
equipment (including right-of-use assets) or intangible assets or both during the current or previous year.
(viii) The Group has not granted any loans or advances in the nature of loans either repayable on demand.
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 31 form integral part of the Consolidated Balance Sheet and Consolidated Statement of Profit and Loss.
DIN: 00011892 DIN: 00002842
Date: May 03, 2023 Date: May 03, 2023

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 Company Country Reporting Reporting Currency Share Reserves Total Total Assets- Investment Turnover Profit Provision Profit OCI Total Proposed % of
No. 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 31/03/2023 EURO 89.61 - - - - - - - (0.04) - (0.04) - (0.04) - 100%
(dissolved on October 27, 2022) Man
2 Havells Guanzhou International China 31/03/2023 CNY 11.96 0.45 10.97 14.69 3.27 11.42 - 42.35 (0.29) 0.03 (0.32) (0.06) (0.38) - 100%
Limited
Note:-
1. Names of subsidiaries which are yet to commence operations: None
Integrated Report
2. Names of subsidiaries which have been liquidated or sold during the year: Havells Holding Limited (Isle of Man)
Part “B” : Joint Ventures

Note:-
1. Joint ventures : Company do not have any joint venture as on reporting date.
For and on behalf of Board of Directors
Anil Rai Gupta Rajesh Kumar Gupta

Chairman and Director (Finance)
Statutory Reports
Managing Director and Group CFO

DIN: 00011892 DIN: 00002842
Ameet Kumar Gupta Sanjay Kumar Gupta

Director Company Secretary
DIN : 00002838 FCS No.: F 3348
Pankaj Jain
Head- Accounts and Finance
Consolidated
Date: May 03, 2023
Integrated Annual Report 2022-23

Place: Noida
Financial Statements
329
Progress at a Glance of Last 10 Years- Havells India Limited (Standalone)
330
Performance for the Year 2014 2015 2016 2017 2018 2019** 2020 2021 2022 2023
Turnover (Gross)* 5,031.11 5,557.79 5,775.42 6,585.96 8,260.27 10,067.71 9,429.20 10,427.92 13,889.00 16,868.38
Less: Excise Duty 311.42 319.10 397.10 450.70 121.70 - - - - -
Turnover (Net) 4,719.69 5,238.69 5,378.32 6,135.26 8,138.57 10,067.71 9,429.20 10,427.92 13,889.00 16,868.38
Profitability
Earnings Before Interest, Depreciation, 641.60 699.10 754.93 824.14 1,049.29 1,183.83 1,027.38 1,565.26 1,757.61 1,602.96

Taxes and Amortisation
Profit before Tax 595.10 646.25 909.03 768.83 1,014.70 1,146.10 901.73 1,431.58 1,603.79 1,450.25
Profit After Tax 478.69 464.94 712.03 539.04 712.52 787.34 733.03 1,039.64 1,194.73 1,074.95
Financial Position
Share Capital 62.39 62.44 62.46 62.49 62.51 62.55 62.58 62.60 62.63 62.65
Other Equity 2,067.46 2,313.35 2,891.21 3,211.09 3,676.64 4,129.65 4,242.23 5,101.85 5,926.01 6,551.83
Loan funds 195.52 83.46 44.40 198.05 108.00 94.50 40.50 492.20 395.53 -
Other Liabilities 1,020.99 1,146.23 1,004.65 1,374.60 2,487.31 2,468.27 2,267.56 2,658.64 3,629.31 3,832.27
Gross Block 1,188.23 1,349.03 1,328.52 1,452.27 3,111.48 3,635.37 4,142.81 4,286.37 4,620.73 5,168.68
Net Block 934.06 1,007.32 1,208.56 1,221.74 2,755.42 3,136.49 3,435.55 3,380.21 3,490.71 3,786.98
Investment in Subsidiaries/JV 882.52 1,011.76 309.61 227.41 41.70 1.66 1.63 1.63 1.63 0.45
Cash and Bank Balance 626.16 522.34 1,365.21 1,937.53 1,526.17 1,287.71 1,106.92 1,931.04 2,982.14 2,157.98
Other Assets 955.36 1,107.43 1,205.60 1,573.31 2,218.12 2,699.80 2,503.76 3,507.34 4,030.68 4,559.75
Earning per share

EPS-as reported 38.36 7.45 11.40 8.63 11.40 12.59 11.71 16.61 19.08 17.16
EPS-adjusted for bonus issue/split 7.67 7.45 11.40 8.63 11.40 12.59 11.71 16.61 19.08 17.16
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.
GRI INDEX
GRI Content Index 2022-23

Disclosure Disclosure Title Section Page Number
No.
General Disclosures - The organisation and its reporting practices
2-1 Name Of the Organisation About Havells 4
2-2 Entities included in the About this report
organization’s
sustainability reporting
2-3 Reporting period, frequency and About this report
contact point
2-4 Restatements of information Business Responsibility and In FY 2022-23 Intregated report follow-
Sustainability report ing figures are being restated
• Total Fuel Consumption as report-
ed last year i.e. 133489 GJ( IR FY
2021-22 Page no 109) while the
correct number was 133609.
• Total Volume of water Consumption
as reported last year i.e. 217034 KL
( IR FY 2021-22 Page no 109) while
the correct number was 217077 KL
• Total Non hazardous waste as re-
ported last year i.e. 8662 MT( IR
FY 2021-22 Page no 111) while the
correct number was 13591 MT
We have further strengthened our
reporting checks and balance to pre-
vent such misinformation in future.
2-5 External assurance About This report M/S KPMG has been appointed for
assuring the non-financial information
[included in the Integrated Report in ac-
cordance with the ‘limited assurance’
criteria of the International Standards
on Assurance Engagements ISAE 3000
(Revised)].
General Disclosures - Activities and workers
2-6 Activities, value chain and other Manufacturing, Business 2, 12
business relationships model
2-7 Employees Business Responsibility and 95
Sustainability report
2-8 Workers who are not employees Business Responsibility and 95
Sustainability report
General Disclosures - Governance
2-9 Governance structure and Report on Corporate 129-130
composition Governance
2-10 Nomination and selection of the Board's report 64
highest governance body
2-11 Chair of the highest governance Governance - Board of 58-59
body Directors
2-12 Role of the highest governance Board's report 76
body in overseeing the
management of impacts
2-13 Delegation of responsibility for Governance 58
managing impacts

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Integrated Report Statutory Reports Financial Statements

Independent Auditor’s Report

Integrated Annual Report 2022-23 153

154 Havells India Limited

Integrated Annual Report 2022-23 155

156 Havells India Limited

Annexure A to Independent Auditor’s Report

Integrated Annual Report 2022-23 157

158 Havells India Limited

Annexure B to Independent Auditor’s Report

Referred to in paragraph 13 of the Independent Auditors’ Report of even date to the

Integrated Annual Report 2022-23 159

160 Havells India Limited

Goods and Services Tax Goods and 0.11 - 2019-20 Additional

Integrated Annual Report 2022-23 161

162 Havells India Limited

xx. (a) In respect of other than ongoing projects, as at Sougata Mukherjee

Integrated Annual Report 2022-23 163

164 Havells India Limited

HAVELLS INDIA LIMITED

Statement of Profit and Loss

Integrated Annual Report 2022-23 165

A) Equity Share Capital

Profit for the year {14(b)e} - - - - 1,074.95 1,074.95

166 Havells India Limited

Statement of Cash Flows

B. CASH FLOWS FROM INVESTING ACTIVITIES

Integrated Annual Report 2022-23 167

168 Havells India Limited

Notes to Financial Statements

1. CORPORATE INFORMATION notified under the Companies (Indian Accounting

iv) Share based payments

Integrated Annual Report 2022-23 169

170 Havells India Limited

Notes to Financial Statements

Integrated Annual Report 2022-23 171

172 Havells India Limited

Notes to Financial Statements

Integrated Annual Report 2022-23 173

- Those to be measured subsequently at fair Subsequent measurement

174 Havells India Limited

Notes to Financial Statements

Integrated Annual Report 2022-23 175

176 Havells India Limited

Notes to Financial Statements

At every reporting date, the historical observed Subsequent measurement

Integrated Annual Report 2022-23 177

178 Havells India Limited

Notes to Financial Statements

Integrated Annual Report 2022-23 179

an entity (the investee), determines whether it incurred in bringing the inventories

2.09 Inventories iv) Net realizable value is the estimated

180 Havells India Limited

Notes to Financial Statements

ii) An active programme to locate a buyer Computation and Disclosure Standards

Integrated Annual Report 2022-23 181

182 Havells India Limited

Notes to Financial Statements

of services over a period of time, because the incentive programmes wherein

Integrated Annual Report 2022-23 183