The Directors present the THIRTIETH ANNUAL REPORT with the audited
statements of accounts of the Company for the year ended
1. FINANCIAL RESULTS:
Particulars Year ended Year ended
December 31, 2013 December 31,
(Rs. in lacs) (Rs. in lacs)
Sales & Other Income 172563 167192
Operating Profit 13709 13365
Less: Interest 39 34
Depreciation 1392 1399
Profit for the year 12278 11932
Provision for tax 5390 3610
Deferred Tax Adjustment (1728) (195)
PROFIT AFTER TAX 8616 8517
Profit brought forward from
the previous year 54585 47947
Profit available for appropriations 63201 56464
General Reserve 862 852
Proposed Dividend 884 884
Tax on proposed dividend 150 143
BALANCE CARRIED FORWARD 61305 54585
Final dividend @Rs. 10/-per share of Rs.10/-each was recommended by the
Board in their meeting held on February 5,2014.
The Management Discussion & Analysis Report annexed herewith provides
full details of operational performance and business analysis of these
- Honeywell Process Solutions (HPS) serves core industrial sectors of
Refining, Oil & Gas, Pulp & Paper, Metal and Cement etc.
- Honeywell Building Solutions (HBS) provides solutions and services
for facilities such as Commercial & Industrial Buildings, IT & ITES
industry, Hospitals, Hotels, Airports etc.
- Environment and Combustion Control (ECC) serves multiple brands
through channels and offers environmental and combustion products and
solutions to commercial, hospitality and industrial segments.
- Sensing & Control (S&C) business provides various sensors and
switches to manufacturing and automobile industry. This business serves
primarily OEMs in various manufacturing industries such as auto,
medical instrumentation, IT, etc.
- Exports Business Group (EBG) addresses manufacturing and engineering
services needs of Honeywell along with some other non Honeywell
customers across the globe, leveraging the cost, skills and knowledge
4. COMMUNITY DEVELOPMENT WORK:
HAIL remains committed to making the world a better place and expanding
community outreach through wide-ranging CSR activities with focus on
Education, Community Health and Environment.
Some of the initiatives under CSR were as follows:
- Sponsored 5 female students studying in College of Engineering, Pune
who are economically under privileged, through the Catalyst Project
in order to promote diversity in the engineering talent pool.
- Supported teaching skill development programs for teachers at 13
rural schools in and around Pune, benefitting over 50 teachers and 2500
students during the past year.
- The computer training program for disabled children conducted by
employee volunteers is in its 5 consecutive year.
- School kits and merit scholarships have been awarded to over 106
children of contract workforce associated with the Company.
- Over 300 school kits were distributed among underprivileged children
- The Company supported vocational skill development programs on
plumbing technology conducted by the IIEDR, Wagholi.
- The Company has also supported and enabled 125 school dropouts to
appear for the SSC Board exam. Health:
- A basic health and hygiene awareness camp was conducted in
association with students from BJ Medical College for over 200 students
from rural areas.
- Blood donation camp for employees at Pune location led to 500 bags of
blood being donated.
- The Company continues to support the AABHA initiative related to
public health awareness in tribal areas of Kolvan valley. 22 local
girls from 12 villages in the valley were trained to be Health
Messengers for their villages.
- The Company sponsored health insurance for 50 school going children
and their parents. Environment:
- Tree plantation and conservation activities have been taken up in
association with rural schools leading to the plantation of over 200
trees during the last year.
- The Company has also provided financial and volunteer support to
Project Green Thumb focused on the de- silting of the Khadakvasala
5. HONEYWELL OPERATING SYSTEM (HOS):
Your Company has been driving operational excellence initiative of
Honeywell Operating System (HOS). Integrated Supply Chain function
(ISC) and Global Services (GS) back office supporting the business of
Honeywell Process Solutions (HPS) worked further towards sustenance of
HOS maturity during 2013, after achieving Silver level accreditation in
2012. Silver is the highest level that an individual HOS site can
achieve. Focus in 2014 at these HOS sites will be on Silver Excellence
through adopting more advanced version of HOS strongly impacting
Safety, Quality, Delivery, Cost and Inventory metrics. Additional drive
in 2014 will be on (1) HOS from day one at new manufacturing |
facility of Environmental and Combustion Controls business being set up
at Vadodara (Gujarat) (2) Enabling operational excellence for India
business and global back office for Honeywell Building Solutions to
improve Quality, Delivery and Productivity performance.
As per the provisions of the Companies Act, 1956 and Articles of
Association of the Company, Mr. M.N. Bhagwat and Mr. Norman Gilsdorf,
retire by rotation and are eligible for reappointment.
7. HUMAN RESOURCES:
Honeywell''s Positive Employee Relationships (PER) strategy aims at
engaged and motivated workforce and to create a positive and productive
Honeywell''s Global PER Assessment Process outlines the Communication,
Action Planning, Surveys (Employee and Manager Survey) and Focus Groups
to make it more effective.
Honeywell has also made great strides to get the Employee Value
Proposition (EVP) in place. It focuses on 5 key themes i.e. 1.
Challenging work that matters 2. Right People 3. Talent and Leader
Development 4. Differentiated Rewards and 5. Community Engagement.
As on December 31, 2013, the Company''s employee strength was 2713 as
compared to 2735 as on December 31, 2012.
8. MANAGEMENT DISCUSSION & ANALYSIS/CORPORATE GOVERNANCE REPORT:
As per Clause 49 of the Listing Agreement with the Stock Exchanges,
Management Discussion and Analysis Report and Corporate Governance
report are annexed and form part of the Directors Report.
9. CODE OF CONDUCT COMPLIANCE:
As per Clause 49 of the Listing Agreement with the Stock Exchanges, the
declaration signed by the Managing Director affirming compliance with
the Code of Conduct by Directors and Senior Management, for the
Financial Year 2013 is annexed and forms part of the Directors Report.
10. DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors,
based on the representations received from the Operating Management,
confirm that -
a) In the preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures;
b) They have, in the selection of the accounting policies, consulted
the Statutory Auditors and have applied them consistently and made
judgements and estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company at the end
of the financial year and of the profit of the Company for that period;
c) They have taken proper and sufficient care, to the best of their
knowledge and ability, for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956,
for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) They have prepared the annual accounts on a going concern basis.
M/s. Price Waterhouse & Co., Bangalore the Statutory Auditors retire at
the forthcoming Annual General Meeting and are eligible for
reappointment. The Company has received the certificate from the
retiring auditors to the effect that the appointment, if made, will be
in accordance with the limits specified in Section 224(1 -B) of the
Companies Act, 1956.
12. OTHER INFORMATION:
Information as per Section 217 (2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Rules, 1975 pertaining to
absorption of technology, foreign exchange earnings, is given as an
Annexure to this Report and forms part of it. As per provisions of
Section 219(1 )(b)(iv) of the Act, the Directors'' Report and Accounts
are being sent to the shareholders excluding the statement giving
particulars of employees under Section 217(2A) of the Act. Any
Shareholder interested in obtaining a copy of the statement may write
to the Company Secretary at the Registered Office of the Company.
The Board would like to place on record its appreciation and thanks to
all its employees for their contribution. The Board also wishes to
acknowledge the support it has received from its investors, customers,
vendors, regulatory authorities and bankers.
For and on behalf of the Board
Gurgaon, February 5, 2014 Chairman
56 & 57, Hadapsar Industrial Estate,