CORPORATE INFORMATION

Registered Ofce & Head Ofce Bankers

9th Floor, Magnus Towers, Citibank N. A.
Mindspace, Link Road,
Malad (West), Standard Chartered Bank
Mumbai - 400 064
Maharashtra Deutsche Bank
Tel: 91-22-2844 9700/ 66795151
Fax: 91-22- 2844 9791 HDFC Bank Limited
CIN: U29150MH1953PLC009158
Canara Bank
www.otis.com

Manufacturing Facility
Bengaluru
92, KIADB Industrial Estate Phase II, Auditors
Jigani Industrial Area Anekal Taluk,
Bengaluru -560 105 M/s. Price Waterhouse & Co Bangalore LLP
Chartered Accountants

National Service Centre

Sai Dhara, Block D2, Warehouse No. 3 & 4,
Mumbai-Nasik Highway (NH3),
Opp. R.K. Petrol Pump, Cost Auditors
Next to Shangrila Resort,
Borivali (Kuksha) Village, M/s. Kishore Bhatia & Associates
Bhiwandi, Pin: 421302 Cost Accountants
Dist: Thane

Regional Ofces
9th Floor, Magnus Towers,
Mindspace, Link Road, Secretarial Auditors
Malad (West), M/s. JSP Associates
Mumbai - 400 064 Company Secretary
Maharashtra

Bengal Intelligent Park,

Block D - 4th Floor,
Block EP & GP, Sector-V
Salt Lake,
Kolkata - 700 091
West Bengal
Registrar & Share Transfer Agents
Link Intime India Pvt Ltd.
Unit Nos. 171 & 271, C 101, 247 Park, L.B.S Marg ,
Aggarwal Cyber Plaza - II Vikhroli (West),
C-7, Netaji Subhash Place, Mumbai – 400083, Maharashtra
Pitampura, New Delhi - 110034
Tel.: 91-22-49186270
Otis House, MK Towers, Fax: 91-22-49186060
#27, Langford Road,
Shanti Nagar, Email: rnt.helpdesk@linkintime.co.in
Bengaluru - 560 027 Website: www.linkintime.co.in.
BOARD OF DIRECTORS CONTENTS
Sebi Joseph - Managing Director
P. S. Dasgupta - Independent Director Notice 03
Anil Vaish - Independent Director
Suma P N - Director
Directors’ Report & Annexures 10
N. K. Mohanty - Director

Standalone Financial Statements

CHIEF FINANCIAL OFFICER

Independent Auditor’s Report 26
Mitesh Mittal

Balance Sheet 32
COMPANY SECRETARY
Sanu Kapoor
Statement of Profit and Loss 33

Cash Flow Statement 34

AUDIT COMMITTEE
P. S. Dasgupta - Chairman
Sebi Joseph - Member Notes forming a part of the Financial
Anil Vaish - Member Statements 37

Consolidated Financial Statements

Independent Auditors’ Report 86

CORPORATE SOCIAL RESPONSIBILITY COMMITTEE
Sebi Joseph - Chairman
Suma P N - Member Balance Sheet 89
P. S. Dasgupta - Member

Statement of Profit and Loss 90

Cash Flow Statement 91

NOMINATION AND REMUNERATION COMMITTEE

P. S. Dasgupta - Chairman Notes forming a part of the Consolidated

N. K. Mohanty - Member Financial Statements 94
Anil Vaish - Member
Statement in Form AOC-1 related to
Subsidiary Companies / Associate
Companies / Joint Ventures 147

STAKEHOLDERS RELATIONSHIP COMMITTEE

Proxy Form 149
N. K. Mohanty - Chairman
Sebi Joseph - Member
Suma P N - Member Attendance Slip 151

Route Map to the AGM Venue 153

01
NOTICE OF ANNUAL GENERAL MEETING
NOTICE is hereby given that the SIXTY THIRD ANNUAL
GENERAL MEETING of the shareholders of OTIS ELEVATOR
COMPANY (INDIA) LIMITED will be held on Friday,
September 22, 2017, at 10:30 am at Senate 2, Grand Sarovar
Premiere, A.K. Plaza, Veer Savarkar Flyover, S.V. Road,
Goregaon (W), Mumbai - 400062 to transact the following
business:
ORDINARY BUSINESS
1. To receive, consider and adopt :
a. The Audited Standalone Financial Statements of the
Company for the Financial Year ended March 31,
2017 together with the reports of the Board of
Directors and Auditors thereon; and
b. The Audited Consolidated Financial Statements of
the Company for the Financial Year ended March 31,
2017 together with the report of the Auditors
thereon.
2. To appoint a Director in place of Mr. N K Mohanty (DIN:
07220804) who retires by rotation at this meeting and
being eligible, offers himself for re-appointment.
3. To appoint Auditors and fix their remuneration and if
thought fit, to pass, the following resolution as an Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of
Sections 139, 142 and other applicable provisions, if any,
of the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014 (including any statutory
modification(s) or re-enactment(s) thereof, for the time
being in force), and pursuant to the recommendation of the
Audit Committee, M/s. BSR & Co. LLP, Chartered
Accountants (FRN 101248W/W- 100022) be and are
hereby appointed as the Statutory Auditors of the
Company, in place of M/s. Price Waterhouse & Co
Bangalore LLP, Chartered Accountants (FRN 007567S/S-
200012), the retiring Auditors for a term of five years
commencing from the financial year 2017-18, to hold
office from the conclusion of the 63rd Annual General
Meeting until the conclusion of the 68th Annual General
Meeting, to be held in the calendar year 2022, subject to
ratification of their appointment by the Members at every
Annual General Meeting on such remuneration plus out-
of-pocket expenses, as may be decided by the Board of
Directors of the Company.
RESOLVED FURTHER THAT Mr. Sebi Joseph,
Managing Director (DIN: 05221403), the Chief Financial
Officer and the Company Secretary be and are hereby
severally authorized to do all acts and take all such steps
as may be necessary, proper and expedient to give effect
to this resolution.”
SPECIAL BUSINESS
4. To re-appoint Mr. Sebi Joseph (DIN: 05221403) as
Managing Director of the Company and if thought fit, to
pass the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section
196, 197, 198 & 203 of the Companies Act 2013 (“Act”)
read with Schedule V and Rules framed thereunder and
any other applicable provisions , if any, of the said Act
(including any amendment, modification, variation or re-
enactment thereof), and Articles of Association of the
Company and necessary approvals, if any, as may be
required, the approval of the members be and is hereby
accorded for the re-appointment of Mr. Sebi Joseph
(DIN:05221403) as the Managing Director of the
Company for a further period of 3 (three) years with effect
from March 16, 2018 to March 15, 2021 upon payment of
remuneration per annum, not exceeding 5% (five percent)
of the net profits of the Company computed under Section
198 of the Act and as may be permitted under other related
provisions, if any, of the Act read with the Rules framed
thereunder, from time to time, within the above stated limit,
during the aforesaid period on the terms and conditions of
his appointment , as recommended by the Nomination and
Remuneration Committee and approved by the Board of
Directors at their meeting held on August 10, 2017 and in
this regard authorize the Board of Directors including the
Nomination and Remuneration Committee of the Board to
alter and vary the remuneration as it may deem fit and to fix
the quantum, composition and periodicity of the
remuneration payable to the said Managing Director
subject however that the annual remuneration does not
exceed the limit approved hereinbefore;
RESOLVED FURTHER THAT the Company in
accordance with its policy will meet all the approved
expenses in connection with the duties exercised by Mr.
Sebi Joseph (DIN:05221403) in the capacity of a
Managing Director and he shall not be paid any sitting
fees for attending meetings of the Board of Directors or
Committees thereof;
RESOLVED FURTHER THAT notwithstanding anything
to the contrary herein contained, where in any financial
year during the currency of his tenure, in the event of loss
or inadequacy of profits, the Company will pay
remuneration within the limits specified in the Schedule V
and any other applicable provisions, if any, of the Act read
with the Rules framed thereunder (including any
amendment, modification, variation or re-enactment
thereof);
RESOLVED FURTHER THAT the remuneration payable
to the Managing Director shall not exceed the overall
ceiling of the total managerial remuneration as provided
under Section 197 of the Companies Act, 2013 or any
such other limits as may be prescribed from time to time;
RESOLVED FURTHER THAT all other terms and
conditions of his employment, including incentive
payment, will be governed by his appointment letter
already issued to him and the relevant Company policies;
RESOLVED FURTHER THAT any one Director, Chief
Financial Officer and Company Secretary of the Company,
be and are hereby severally authorised to take such steps
and do all other acts, deeds and things as may be
necessary or desirable to give effect to this resolution.”
5. To appoint Ms. Suma P N (DIN: 05350680) as Whole-time
Director and, if thought fit, to pass the following resolution
as an Ordinary Resolution:
03
Annual Report 2016 - 2017
NOTICE OF ANNUAL GENERAL MEETING
“RESOLVED THAT pursuant to the provisions of
Sections 196, 197, 198 & 203 and other applicable
provisions of the Companies Act, 2013 ( “Act”) read with
Schedule V and the Rules made thereunder (including any
statutory modification or re-enactment thereof) and
Articles of Association of the Company, approval of the
members of the Company be and is hereby accorded to
the appointment of Ms. Suma Puthan Naduvakkat (DIN:
05350680), as Whole-time Director of the Company for a
term of (three) years with effect from August 16, 2017 to
August 15, 2020 and liable to retire by rotation, upon
payment of remuneration per annum, not exceeding 5%
(five percent) of the net profits of the Company computed
under Section 198 of the Act and as may be permitted
under other related provisions, if any, of the Act read with
the Rules framed thereunder, from time to time, within the
above stated limit, during the aforesaid period on the
terms and conditions of her appointment, as
recommended by the Nomination and Remuneration
Committee and approved by the Board of Directors at
their meeting held on August 10, 2017 and in this regard
authorize the Board of Directors including the Nomination
and Remuneration Committee of the Board to alter and
vary the remuneration as it may deem fit and to fix the
quantum, composition and periodicity of the remuneration
payable to Ms. Suma Puthan Naduvakkat (DIN:
05350680) subject however that the annual remuneration
does not exceed the limit approved hereinbefore;
RESOLVED FURTHER THAT the Company in
accordance with its policy will meet all the approved
expenses in connection with the duties exercised by Ms.
Suma Puthan Naduvakkat (DIN: 05350680), in the
capacity of a Whole-time Director and she shall not be
paid any sitting fees for attending meetings of the Board of
Directors or Committees thereof;
RESOLVED FURTHER THAT notwithstanding anything
to the contrary herein contained, where in any financial
year during the currency of her tenure, in the event of loss
or inadequacy of profits, the Company will pay
remuneration within the limits specified in the Schedule V
and any other applicable provisions, if any, of the Act read
with the Rules framed thereunder (including any
amendment, modification, variation or re-enactment
thereof);
RESOLVED FURTHER THAT the remuneration payable
to Ms. Suma Puthan Naduvakkat (DIN: 05350680), shall
not exceed the overall ceiling of the total managerial
remuneration as provided under Section 197 of the Act or
such other limits as may be prescribed from time to time.
RESOLVED FURTHER THAT Mr. Sebi Joseph,
Managing Director (DIN: 05221403), the Chief Financial
Officer and the Company Secretary be and are hereby
severally authorized to do all acts and take all such steps
as may be necessary, proper and expedient to give effect
to this resolution.”
6. To ratify remuneration payable to the Cost Auditors for the
financial year 2017-18 and, if thought fit, to pass the
following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section
148 and other applicable provisions, if any, of the
04
Companies Act, 2013 (“Act”) and the Rules framed
thereunder as amended from time to time, the
remuneration payable to M/s. Kishore Bhatia & Associates
(FRN: 00294), Cost Accountants, Mumbai, re-appointed
by the Board of Directors of the Company, on the
recommendation of the Audit Committee, as Cost Auditors
to conduct the audit of the cost records of the Company
for the financial year 2017-18, amounting to Rs. 1,90,000/-
(Rupees One Lakh Ninety Thousand Only) plus applicable
taxes and reimbursement of out of pocket expenses at
actuals, be and is hereby ratified and approved.
RESOLVED FURTHER THAT Mr. Sebi Joseph,
Managing Director (DIN: 05221403), the Chief Financial
Officer and the Company Secretary be and are hereby
severally authorized to do all acts and take all such steps
as may be necessary, proper and expedient to give effect
to this resolution.”
7. To approve payment of commission to the Independent
Directors and if thought fit, to pass the following resolution
as an Special Resolution:
“RESOLVED THAT pursuant to the provisions of Section
197,198 an all other applicable provisions of the
Companies Act, 2013 (“Act”) and the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014 (including any statutory
modification or re-enactment thereof ) (“Act”) and upon
recommendations of the Board of Directors, a sum not
exceeding one percent (1%) per annum of the net profits of
the Company calculated in accordance with the provisions
of Section 198 of the Act, be paid to and distributed
amongst the Independent Directors of the Company in
such amounts or proportions and in such manner and in all
respects as may be directed by the Board of Directors and
such payments shall be made in respect of the profits of
the Company for each financial year for the period of five
years commencing from 1 April, 2018.
RESOLVED FURTHER THAT the above remuneration
shall be in addition to fee payable to the Independent
Directors for attending the meetings of the Board or
Committee thereof or for any other purpose whatsoever as
may be decided by the Board of Directors and
reimbursement of expenses for participation in the Board
and other meetings.”
By Order of the Board of Directors
Sanu Kapoor
Company Secretary
REGISTERED OFFICE:
9th Floor, Magnus Towers,
Mindspace, Malad Link Road
Malad (W), Mumbai- 400 064
Maharashtra
Tel: 91-22-2844 9700/ 66795151
Fax: 91-22- 2844 9791
CIN: U29150MH1953PLC009158
www.otis.com
Mumbai, August 10, 2017
NOTICE OF ANNUAL GENERAL MEETING
Notes:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT
THE ANNUAL GENERAL MEETING IS ENTITLED TO
APPOINT A PROXY TO ATTEND AND VOTE INSTEAD
OF HIMSELF/HERSELF, AND THE PROXY NEED NOT
BE A MEMBER OF THE COMPANY.
2. Proxy, in order to be effective, must be received at the
Registered Office of the Company, duly completed and
signed, not less than 48 hours before the commencement
of the meeting. Proxies submitted by an authorized
representative of companies, societies etc., must be
supported by an appropriate resolution/ authority, as
applicable.
A person can act as a proxy on behalf of not exceeding 50
members and holding in the aggregate not more than 10%
of the total share capital of the Company carrying voting
rights. A member holding more than 10% of the total share
capital of the Company carrying voting rights may appoint
a single person as proxy and such person shall not act as a
proxy for any other person or member.
3. An Explanatory Statement under Section 102 of the
Companies Act, 2013 in respect of Item Nos. 3 to 7 to be
transacted at the Meeting is appended hereto.
4. The Register of Members and the Share Transfer Books of
the Company will remain closed from Friday, September
15, 2017 to Friday, September 22, 2017 (both days
inclusive).
5. Members holding shares in electronic form may note that
bank particulars registered against their respective
depository accounts will be used by the Company for
payment of dividend. Members holding shares in
electronic form are requested to intimate immediately any
change in their address or bank mandates to their
Depository Participants with whom they are maintaining
their demat accounts. The Company or its Registrar and
Share Transfer Agents (RTA) cannot act on any request
received directly from the members holding shares in
electronic form for any change of bank particulars or bank
mandates.
Shareholders are requested to provide Bank details to
facilitate payment of dividend either in electronic mode or
for printing on the payment instruments.
6. For any quer ies/ gr ievances in respect of the
shareholdings, the shareholders are requested to send
their communication to the Company’s Registrar and
Share Transfer Agents (RTA) – Link Intime India Private
Limited located at C 101, 247 Park, LBS Road, Vikhroli
(West), Mumbai- 400089, Tel No. +91 22 49186270 Fax:
+91 22 49186060 Email Id: rnt.helpdesk@linkintime.co.in
Website: www.linkintime.co.in.
Further Members are requested to:
I. Quote their folio number / client ID no. in all
correspondence with the Company/RTA.
ii. Members holding shares in physical form are
requested to intimate the following directly to the
Company’s RTA:
a. Changes, if any, in their address with pin code
numbers.
b. Quote their ledger folio no. in all their
correspondence.
c. Request for nomination forms for making
nominations
7. The amount outstanding in unpaid dividend account in
respect of financial year ended March 31, 2012, March 31,
2013, March 31, 2014, March 31, 2015 and March 31,
2016 will be transferred to the Investor Education and
Protection Fund (IEPF) established by the Central
Government after the end of seven years from the
respective date of transfer of the same to the Company’s
unpaid dividend account. The shareholders are advised to
send all the un-encashed demand drafts/dividend
warrants pertaining to the above years to our RTA for
revalidation or issuance of fresh demand drafts/dividend
warrants.
8. In compliance with Section 108 of the Companies Act,
2013, Rule 20 of the Companies (Management and
Administration) Rules, 2014 as amended by the
C o m p a n i e s ( M a n a g e m e n t a n d A d m i n i s t ra t i o n )
Amendment Rules, 2015 the Company has provided a
facility to the members to exercise their votes
electronically through the electronic voting service facility
arranged by Central Depository Services Limited.
9. The facility for voting through ballot paper will also be
made available at the 63rd Annual General Meeting
(“AGM”) and the members attending the AGM who have
not already cast their votes by remote e-voting shall be
able to exercise their right at the AGM through ballot paper.
Members who have already cast their votes through
remote e-voting prior to AGM may attend the AGM but
shall not be entitled to cast their votes again.
10. The Company has appointed Mr. Jatin Popat, proprietor of
M/s. JSP Associates, Practicing Company Secretary,
Mumbai as Scrutinizers for conducting the remote e-voting
and physical voting at the AGM in a fair and transparent
manner.
11. The instructions for shareholders voting electronically are
as under:
(i) The remote e-voting period begins on September
19, 2017 at 9.00 am and ends on September 21,
2017 at 5.00 pm. During this period shareholders’ of
the Company, holding shares either in physical form
or in dematerialized form, as on the cut-off date
September 15, 2017, may cast their vote
electronically. The e-voting module shall be disabled
by CDSL for voting thereafter.
(ii) The shareholders should log on to the e-voting
website www.evotingindia.com.
(iii) Click on Shareholders.
(iv) Now, Select the “COMPANY NAME” from the drop
down menu and click on “SUBMIT”
(v) Now Enter your User ID
05
Annual Report 2016 - 2017
NOTICE OF ANNUAL GENERAL MEETING
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by 8
Digits Client ID,
c. Members holding shares in Physical Form
should enter Folio Number registered with the
Company.
(vi) Next enter the Image Verification as displayed and
Click on Login.
(vii) If you are holding shares in demat form and had
logged on to www.evotingindia.com and cast vote
earlier for EVSN of any company, then your existing
password is to be used.
(viii) If you are a first time user follow the steps given
below:
For Members holding shares in Demat Form and Physical Form
Enter your 10 digit alpha-numeric *PAN issued by
Income Tax Department (Applicable for both
demat shareholders as well as physical
shareholders)
• Members who have not updated their PAN with
the Company/Depository Participant are
requested to use the first two letters of their name
PAN and the 8 digits of the sequence number in the
PAN Field.
• In case the sequence number is less than 8
digits enter the applicable number of 0’s before the
number after the first two characters of the name
in CAPITAL letters. E.g. If your name is Ramesh
Kumar with sequence number 1 then enter
RA00000001 in the PAN Field.
Enter the Date of Birth as recorded in your demat
DOB account or in the company records for the said
demat account or folio in dd/mm/yyyy format.
• Enter the Dividend Bank Details as recorded in
your demat account or in the company records for
the said demat account or folio.
Dividend • Please enter the DOB or Dividend Bank Details
Bank in order to login. If the details are not recorded with
Details the depository or company please enter the
member id / folio number in the Dividend Bank
details field as mentioned in instruction (v).
(ix) After entering these details appropriately, click on
“SUBMIT” tab.
(x) Members holding shares in physical form will then
directly reach the Company selection screen.
However, members holding shares in demat form
will now reach ‘Password Creation’ menu wherein
they are required to mandatorily enter their login
password in the new password field. Kindly note that
this password is to be also used by the demat
holders for voting for resolutions of any other
company on which they are eligible to vote, provided
that company opts for e-voting through CDSL
platform. It is strongly recommended not to share
your password with any other person and take
utmost care to keep your password confidential.
06
(xi) For Members holding shares in physical form, the
details can be used only for e-voting on the
resolutions contained in this Notice.
(xii) Click on the EVSN for the relevant Otis Elevator
Company (India) Limited and on which you choose
to vote.
(xiii) On the voting page, you will see “RESOLUTION
DESCRIPTION” and against the same the option
“YES/NO” for voting. Select the option YES or NO as
desired. The option YES implies that you assent to
the Resolution and option NO implies that you
dissent to the Resolution.
(xiv) Click on the “RESOLUTIONS FILE LINK” if you wish
to view the entire Resolution details.
(xv) After selecting the resolution you have decided to
vote on, click on “SUBMIT”. A confirmation box will
be displayed. If you wish to confirm your vote, click
on “OK”, else to change your vote, click on
“CANCEL” and accordingly modify your vote.
(xvi) Once you “CONFIRM” your vote on the resolution,
you will not be allowed to modify your vote.
(xvii) You can also take out print of the voting done by you
by clicking on “Click here to print” option on the
Voting page.
(xviii) If Demat account holder has forgotten the same
password then Enter the User ID and the image
verification code and click on Forgot Password &
enter the details as prompted by the system.
(xix) Shareholders can also cast their vote using CDSL’s
mobile app m-Voting available for android based
mobiles. The m-Voting app can be downloaded from
Google Play Store. Apple and Windows phone users
can download the app from the App Store and the
Windows Phone Store respectively. Please follow
the instructions as prompted by the mobile app while
voting on your mobile.
(xx) Note for Non – Individual Shareholders and
Custodians
• Non-Individual shareholders (i.e. other than
Individuals, HUF, NRI etc.) and Custodian are
required to log on to www.evotingindia.com and
register themselves as Corporates.
• A scanned copy of the Registration Form bearing the
stamp and sign of the entity should be emailed to
helpdesk.evoting@cdslindia.com.
• After receiving the login details a compliance user
should be created using the admin login and
password. The Compliance user would be able to
link the account(s) for which they wish to vote on.
• The list of accounts should be mailed to
helpdesk.evoting@cdslindia.com and on approval
of the accounts they would be able to cast their vote.
NOTICE OF ANNUAL GENERAL MEETING
• A scanned copy of the Board Resolution and Power
of Attorney (POA) which they have issued in favour
of the Custodian, if any, should be uploaded in PDF
format in the system for the scrutinizer to verify the
same.
(xxi) In case you have any queries or issues regarding e-
voting, you may refer the Frequently Asked
Questions (“FAQs”) and e-voting manual available at
www.evotingindia.com, under help section or write
an email to helpdesk.evoting@cdslindia.com.
12. The results shall be declared on or after the annual
general meeting of the Company. The results declared
along with the scrutinizer’s report shall be placed on the
Company’s website www.otis.com and on the web site of
CDSL within two (2) days of passing of the resolutions at
the annual general meeting of the Company.
13. A member can opt for only one mode i.e. either through e-
voting or voting at the annual general meeting. If a member
casts votes by both modes, then voting done through e-
voting shall prevail and the voting at annual general
meeting shall be treated as invalid.
14. Members desiring any information as regards the Annual
Report are requested to write to the Company Secretary at
the Registered Office, Mumbai at least ten (10) days
before the date of the Annual General Meeting so that
information can be made available at the meeting.
15. To promote green initiative as per circular issued by
Ministry of Corporate Affairs in 2011, members are
requested to register their e-mail addresses through their
Depository Participants where they are holding their
demat accounts for sending the future communications by
e-mail. Members holding the shares in physical form may
register their e-mail addresses through the RTA, giving
reference of their Folio Number.
16. Members are requested to bring their copy of the Annual
Report with them to the Annual General Meeting.
17. All documents referred to in the accompanying Notice and
the Explanatory Statement shall be open for inspection at
the Registered Office of the Company during normal
business hours from Monday to Friday, up to and including
the date of the Annual General Meeting of the Company.
Annexure to the Notice
The Explanatory Statement as required under Section 102
(1) of the Companies Act, 2013
Item No. 3
This Explanatory Statement is provided though strictly not
required as per 102 of the Companies Act, 2013
M/s. Price Waterhouse & Co. Bangalore LLP, (Firm Registration
No. 007567S/S-200012), Chartered Accountants were
appointed as the Statutory Auditors at 61st Annual General
Meeting (“AGM”) held on September 23, 2015 for a period of
three years. Pursuant to the provisions of Section 139 of the
Companies Act, 2013 (“Act”) read with applicable Rules framed
thereunder, as amended, M/s. Price Waterhouse & Co.
Bangalore LLP, the present Auditors of the Company completed
their term as Auditors and in terms of their appointment made at
the 61st AGM, they are holding office of the Auditors up to the
conclusion of the 63rd AGM and hence, would retire at the
conclusion of the forthcoming 63rd AGM. As per Section 139(2)
of the Companies Act, 2013 ('the Act'), an additional transition
period of three years from the commencement of the Act was
provided to appoint a new auditor when the existing audit firm
(including its affiliate firms) would complete their two terms of
five consecutive years.
M/s. Price Waterhouse & Co. Bangalore LLP (along with its
network Firms) have completed period of ten years and will also
complete the additional transition period of three years at the
conclusion of the forthcoming 63rd AGM. The Audit Committee
and the Board of Directors have placed on record their
appreciation for the professional services rendered by M/s. Price
Waterhouse & Co. Bangalore LLP, (FRN 007567S/S-200012)
and its network Firms during their association with the Company
as the Auditors. For the purpose of appointment of new Auditors,
the Management, invited proposals from the reputed firms of
Chartered Accountants and had detailed discussion with
representatives of those firms. The Audit Committee considered
various parameters such as reputation of the firm, knowledge
and experience of the partners, understanding of business,
technical assessment of the Audit skills and the Audit fees and
based on these detailed analysis, the Audit Committee
recommended M/s. BSR & Co. LLP, (FRN 101248W/W- 100022)
as the Company's new Statutory Auditors.
M/s. BSR & Co. LLP(FRN 101248W/W- 100022), Chartered
Accountants is an independent Indian Limited Liability
Partnership with its head office at : IT Building No. 2, Hall 4,
Nesco IT park, Nesco Complex, Western Express Highway,
Goregaon (East), Mumbai 400 063.
M/s. BSR & Co. LLP (FRN 101248W/W- 100022), Chartered
Accountants have consented to the said appointment and
confirmed that their appointment, if made, would be within the
limits specified under Section 141(3)(g) of the Act. They have
further confirmed that they are not disqualified to be appointed
as statutory auditors in terms of the provisions of the proviso to
Section 139(1), Section 141(2) and Section 141(3) of the Act
and the provisions of the Companies (Audit and Auditors) Rules,
2014 as amended. Accordingly, as per the said requirements of
the Act, BSR & Co. LLP (FRN 101248W/W- 100022), Chartered
Accountants are proposed to be appointed as auditors for a
period of five consecutive years, commencing from the
conclusion of this 63rd AGM until the conclusion of the 68th
AGM subject to ratification by members every AGM .
The Board of Directors recommends the Ordinary Resolution as
set out at item no. 3 of the Notice for approval of the Members.
Interest of Directors:
None of the Directors and Key Managerial Personnel of the
Company or their relatives are concerned or interested
financially or otherwise, in the resolution.
Item No. 4
Mr. Sebi Joseph (DIN: 05221403) (aged 55 years) leads the core
team that drives the growth and performance at Otis India and
has contributed significantly to the transformation of the
Company in the past 5 years.
Mr. Joseph joined the Board of the Company as Additional and
Whole-time Director with effect from March 07, 2012. He was
07
Annual Report 2016 - 2017
NOTICE OF ANNUAL GENERAL MEETING
appointed as Managing Director with effect from March 16, 2012
for a tenure of three years till March 15, 2015 and was further re-
appointed as Managing Director from March 16, 2015 till March
15, 2018.
As part of the initiative to create enduring guidance for the
Company the Board of Directors of the Company has approved
re-appointment of Mr. Joseph for a further period of three years
with effect from March 16, 2018 till March 15, 2021 in its meeting
held on August 10, 2017, on the recommendation of the
Nomination & Remuneration Committee.
Mr. Joseph holds a Bachelor’s Degree in Mechanical
Engineering and Master’s Degree in Business Administration.
He is the Chairman of IEEMA ( Indian Electrical & Electronics
Manufacturers’ Association)- Elevator & Escalator Division and
has overall 30 years of valuable experience. He is also director
on the Boards of: Supriya Elevator Company (India) Limited
(Wholly Owned Subsidiary of the Company) and Elevators
(Private) Limited (Sri Lanka).
He has attended four out of five Meetings of the Board held
during the financial year 2016-17. He holds the membership of
the following Committees of the Board :
Sr. No. Name of the Company Name of the Committee
Audit Committee -
Member
Corporate Social
1. Otis Elevator Co. (India) Ltd. Responsibility Committee
– Chairman
Stakeholders Relationship
Committee-Member
Mr. Sebi Joseph does not hold any shares in the Company and is
not related with any other Director or Key Managerial Personnel
of the Company. Remuneration last drawn by him for the
financial year 2016-17 was INR 36,874,681. The re-appointment
will be on the existing terms and conditions of his employment
with the Company and remuneration shall be as set out in the
resolution.
The Board considered the various aspects relating thereto
including experience, future business prospectus, effect of re-
appointment in the effective management of the affairs of the
Company etc. and such re-appointment is in accordance with
the provisions of the Companies Act, 2013 read with Schedule V
and the Rules framed thereunder as amended and is subject to
the approval of the members of the Company.
In terms of the provisions of the Companies Act, 2013, the
consent of the members is required for the re-appointment and
remuneration of Mr. Sebi Joseph (DIN 05221403) as the
Managing Director of the Company.
The Board recommends the Ordinary Resolution as set out at
item no. 4 of the Notice for approval of the members.
The terms set out in the resolution and in the explanatory
statement may be treated as an abstract of the terms and
conditions governing his re-appointment and remuneration and
memorandum of interest pursuant to Section 190 of the
Companies Act, 2013.
Interest of Directors:
None of the Directors, Key Managerial Personnel or their
08
relatives are concerned or interested, financially or otherwise, in
this resolution except Mr. Sebi Joseph and his relatives.
Item No. 5
Ms. Suma Puthan Naduvakkat (DIN: 05350680), (aged 48
years) was appointed as an Additional Director by the Board of
Directors in its meeting held on March 10, 2015 and appointed
as Director in the 61st Annual General Meeting held on
September 23, 2015.
The Board of Director has approved her appointment as Whole-
time Director in its meeting held on August 10, 2017 for a period
of three years with effect from August 16, 2017 to August 15,
2020 on the recommendation of the Nomination &
Remuneration Committee (“NRC”).
Ms. Suma holds a Post Graduate Diploma in Personnel
Management from St. Josephs College and she is an MBA from
Indira Gandhi National Open University. She also completed a
two year Management Program (MTP). Ms. Suma brings in over
28 years of valuable experience.
She is not holding any Directorships, Memberships/
Chairmanship of Committees of any other Company. She has
attended all the five (5) Meetings of the Board held during the
financial year 2016-17 and holds the membership of the
following Committees of the Board :
Sr. No. Name of the Company Name of the Committee
Corporate Social
Responsibility Committee
1. Otis Elevator Co. (India) Ltd.
Stakeholders Relationship
Committee
Ms. Suma P N does not hold any shares in the Company and is
not related to any other Director or Key Managerial Personnel of
the Company. Remuneration drawn by her for the financial year
2016-17 was INR 14,387,872. The appointment including the
remuneration is on the existing terms and conditions of her
employment with the Company.
The NRC while recommending her appointment as Whole-time
Director, considered the various aspects relating thereto
including experience, future business prospectus etc. She has
also given her consent to act as Whole-time Director of the
Company. Her appointment as the whole-time director is in
accordance with the provisions of the Companies Act, 2013 read
with Schedule V and the Rules framed thereunder as amended
and is subject to the approval of the members of the Company.
In terms of the provisions of the Companies Act, 2013, the
consent of the members is required for the appointment and
remuneration of Ms. Suma Puthan Naduvakkat (DIN:
05350680), as the whole-time Director of the Company.
The Board recommends the Ordinary Resolution as set out at
item no. 5 of the Notice for approval of the members.
The terms set out in the resolution and in the explanatory
statement may be treated as an abstract of the terms and
conditions governing his appointment and remuneration and
memorandum of interest pursuant to Section 190 of the
Companies Act, 2013.
NOTICE OF ANNUAL GENERAL MEETING
Interest of Directors: Accordingly, consent of the members is sought for passing a
None of the Directors, Key Managerial Personnel or their Special Resolution set out at item no. 7 of the Notice.
relatives are concerned or interested, financially or otherwise, in
this resolution except Ms. Suma PN and her relatives. None of the Directors, Key Managerial Personnel or their
relatives are concerned or interested, financially or otherwise, in
Item No. 6 the resolution, except the Independent Directors of the
Company and their respective relatives.
The Board of Directors, on the recommendation of the Audit
Committee, has approved the re-appointment of M/s. Kishore
Bhatia & Associates as the Cost Auditors to conduct the audit of
the cost records of the Company for the financial year ending By Order of the Board of Directors
March 31, 2018 at a remuneration of Rs.1,90,000/- plus
applicable taxes and out-of pocket expenses at actuals. Sanu Kapoor
Company Secretary
In accordance, with the provisions of Section 148 of the
Companies Act, 2013 read with the Rules framed thereunder as REGISTERED OFFICE:
amended, the remuneration payable to the Cost Auditors has to 9th Floor, Magnus Towers,
be ratified by the members of the Company. Mindspace, Malad Link Road
Malad (W), Mumbai- 400 064
Accordingly, consent of the members is sought for passing an Maharashtra
Ordinary Resolution set out at item no. 6 of the Notice. Tel: 91-22-2844 9700/ 66795151
Fax: 91-22- 2844 9791
Interest of Directors: CIN: U29150MH1953PLC009158
None of the Directors, Key Managerial Personnel or their
relatives are concerned or interested, financially or otherwise, in www.otis.com
this resolution.
Mumbai, August 10, 2017
Item No. 7

The members of the Company at their 58th Annual General

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

Taking into account the responsibilities of the Independent

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

09
Annual Report 2016 - 2017

DIRECTORS’ REPORT
DIRECTORS’ REPORT On Consolidated basis, Sales from operations for FY 2016-17 at
Rs. 12,850 million was higher by 18.85% over last year (Rs.
Dear Members,
10,812 million in FY 2015-16). Profit after tax (“PAT”) for the year
was Rs. 1,401 million recording an increase of 9.20 % over the
Your Directors have pleasure in presenting the Sixty Third
PAT of Rs.1,282 million of FY 2015-16.
Annual Report on the business and operations of the Company,
together with the Audited Financial Statements for the Financial BUSINESS
Year ended March 31, 2017. The fiscal year 2016-17 saw a GDP growth rate of 7.1%. We
have seen improvement in overall economy, in terms of
FINANCIAL HIGHLIGHTS:
Industrial production, inflation, FDI investments etc. While the
Financial highlights of the Company are presented in the table
Real estate sector has seen some sign of revival with increase in
below:
absorption, the new launches continue to show declining trend
(Rs. in millions) due to high inventory pile up. However, with absorption trend
Standalone Consolidated improving and inventory level dropping, the new launches are
2016-17 2015-16 2016-17 2015-16 expected to see an improving trend in the near future.

Revenue from operation 12,703 10,686 12,851 10,812 Even though in the short term there will be an impact of the
Other Income 1,119 1,008 1,119 1,009 Demonetization, GST as well as the Real Estate (Regulation
Total Income 13,822 11,694 13,970 11,821 and Development) Act, 2016 (“RERA”), the overall outlook
Profit before tax 2,175 1,913 2,168 1,920 remains to be positive for the industry. The RERA, which will
Add / (Less): bring more transparency to the industry and fuel long term
Exceptional items (14) (68) - efficiency and growth in the industry. The drop in borrowing rate
is also expected to boost demand for more housing.
Provision for Tax 764 625 767 637
Net Profit after tax 1,396 1,220 1,401 1,283
As you are aware, your Company’s revenue accrues from three
Share of Net Profit of Associates - 14 15 major business segments-New Equipment sales, Service and
Surplus brought forward 9,063 8,641 9,036 8,550 Modernisation:
Profit after tax available for 10,459 9,861 10,451 9,848
appropriation NEW EQUIPMENT SALES
Items of Other Comprehensive Income 12 (16) 13 (16)
Appropriation: The market is going through the lag effect of Demonetization
and with the impending GST the outlook is of moderate growth.
Interim & Proposed Dividend 1,122 650 1,122 650
Your Company has been improving share in the segment and
Dividend Distribution tax 228 132 228 132
will continue the journey to grow our share further. The products
Transaction with Non-controlling (207) portfolio and the Sales footprint has been enhanced. Your
Interest Company intends to continue to invest to further expand the
Surplus carried forward 9,121 9,063 9,084 9,037 product portfolio & the foot-print to enhance turnkey execution
and service capabilities. The Gen2 Core launched last year has
been a consistent performer and has captured significant share
DIVIDEND in its segment this has helped in the overall share growth. Your
Your Company paid interim dividend of 3600%, being Rs. 360 Company will continue to leverage its access to world class
per equity share of Rs. 10 each fully paid up in July 2017 for the technologies and processes.
financial year 2017-18. In view of this, no final dividend is
recommended for the year under review. The Register of SERVICE
Members and Share Transfer Books shall remain closed from
Friday September 15, 2017 to Friday September 22, 2017 (both Your Company continues to be the largest Company in terms of
days inclusive) for the purpose of Annual General Meeting. service portfolio and revenue, in India. Today, we have a network
of 97 service centres spread across India, serving more than
TRANSFER TO RESERVE 300 cities and towns. 24/7 call centre and extensive service
During the year under review, an amount of Rs. 9,121 million is network ensures speedy and efficient response to customers.
proposed to be carried forward to the Profit & loss Account and Your Company has registered healthy growth in Service revenue
no amount was transferred to General Reserve. in the year under review. To stay ahead of competition and retain
our leadership position, Your Company is investing heavily in
REVIEW OF OPERATIONS digitalization, technology, manpower and skill development.
FINANCIALS MODERNISATION (MOD)
On Standalone basis, Sales from operations for FY 2016-17 at
Rs. 12,703 million, was higher by 2,017 million over last year With new MOD products and increase in the sales coverage
(Rs.10,686 million in FY 2015-16) reflecting increase of 18.90%. your Company has registered growth in modernisation revenues
New equipment sales and service business has shown good in the year under review. In the 1st quarter of 2017, the Company
revenue growth. Profit after tax (“PAT”) for the year was Rs. 1,396 has launched a new package for modernization and planning to
million registering an increase of 14.40% over the PAT of launch few more packages, in the coming year, which will fuel
Rs.1,220 million in FY 2015-16, driven by reduction in non - growth in Modernization business.
operating other income.

10
DIRECTORS’ REPORT
CURRENT OUTLOOK:
Otis India has been progressing well in their effort to localize
their global products at their state of art manufacturing facility in
Bangalore. There are a number of products that are being
planned to be launched both in the short term and long term. Our
launches during the year 2014, 2015, 2016 and for products like
Gen2 Infinity, Nova MRL and Gen2 Core will continue to bear
traction in years to come. In the 2nd quarter of 2017, we had new
product launch for Infinity MRL and also your Company
launched the new aesthetics program. On the Modernization
front there was a new product Manual to Auto. With these
initiatives and execution, as planned, we are now poised to see
sound growth in Order booking as well as segment share
improvement.
India remains to be the second largest elevator-escalator market
in the world after China, expected to grow at a healthy rate 6-7%
for the next 5 years. The Company management is closely
monitoring and reviewing these changes to suitably modify its
business strategy in accordance with the changing market
environment. The Company continues to promote green
products which will have a positive environmental impact. Your
Company is confident of forging ahead without compromising on
its core values, while sustaining its brand-value with its
customers.
SAFETY
Your Company continues to strive to ensure that its products and
services are safe; its workplaces are safe from hazards. During
the year under review the Company continued to maintain high
safety standard.
CERTIFICATION
Your Company is certified for ISO 9001:2008 (Quality
Management System) and ISO 14001:2004 (Environmental
Management System).
CONSOLIDATED FINANCIAL STATEMENTS
The Annual Consolidated Financial Statements together with
the Report of the Auditors’ thereon forms part of this Annual
Report.
REVIEW OF SUBSIDIARIES AND ASSOCIATES
Your Company had one Subsidiary Company -Supriya Elevator
Company (India) Ltd. (Supriya) with 80% stake. During the year,
your Company purchased the remaining 20% stake in Supriya,
by virtue of this, Supriya Elevator Co. (India) Ltd is now a Wholly
Owned Subsidiary of your Company. Your Company has one
Associate Company Trio Elevators Company (India) Ltd.
Financials of the Subsidiary Company are disclosed in the
Consolidated Financial Statements, which form part of the
Annual Report.
A Statement containing salient features of the Financial
Statements of the Subsidiaries and Associate Companies is
attached to the Financial Statements pursuant to section 129(3)
of the Companies Act, 2013 and Rules made thereunder as
amended in the prescribed Form AOC -1.
There has been no change in the nature of business of the
Company and its Subsidiary Company during the year.
The Company has obtained a Certificate from the Statutory
Auditors of the Company for the year under review certifying that
the Company is in compliance with the FDI conditionality's under
Foreign Exchange Management Act, 1999 for downstream
investment by the Company.
DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to the requirements under Section 134(3) (c) of the
Companies Act, 2013, your Directors state that:
I. in the preparation of the annual accounts for the year
ended March 31, 2017, the applicable accounting
standards have been followed along with proper
explanation relating to material departures if any;
ii. the directors had selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the Company as
on March 31, 2017 and of the profit and loss of the
Company for the year ended March 31, 2017;
iii. the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
2013, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv. the directors had prepared the annual accounts on a
going concern basis.
v. the directors had devised proper systems to ensure
compliance with the provisions of all applicable laws and
such systems were adequate and operating effectively.
PARTICULARS OF LOANS GUARANTEES OR
INVESTMENT U/S 186
Details of Loans, Guarantees and Investment covered under the
provisions of Section 186 of the Companies Act, 2013 read with
the Rules framed thereunder as amended, are given in the notes
to the Financial Statements. The Company has complied with
the requirements of Section 186 of the Companies Act, 2013
read with the Rules framed thereunder as amended.
FIXED DEPOSITS
The Company has not accepted any deposits within the
meaning of section 73 of the Companies Act, 2013 read with the
Companies (Acceptance of Deposits) Rules, 2014 as amended
from time to time and as such, no amount on account of principal
or interest on public deposits was outstanding as on the date of
balance sheet.
RISK MANAGEMENT POLICY
In today’s economic environment, Risk Management is a very
important part of business. Your Company’s risk management is
embedded in business. The Company has formulated and
implemented a mechanism for Risk Management and has
developed a Risk Management Policy. Risks are classified in
different categories such as Business and Compliance related
risks. These risks are reviewed on a periodic basis and controls
are put in place and mitigation planned with identified process
owners and defined timelines.
11
Annual Report 2016 - 2017
DIRECTORS’ REPORT
DIRECTORS
Mr. N K Mohanty retires by rotation at the ensuing Annual
General Meeting and being eligible offers herself for re-
appointment.
Attention of the Members is invited to the relevant items in the
Notice of the Annual General Meeting seeking your approval to
the aforesaid appointments.
Mr. P S Dasgupta (DIN: 00012552) and Mr. Anil Vaish (DIN:
00208119), the Independent Directors of the Company have
furnished declarations that they meet the criteria of
Independence as laid down under section 149(6) of the
Companies Act, 2013 and there has been no change in the
circumstances which may affect their status as independent
director during the year.
There has been no change in the key managerial personnel
during the year.
REMUNERATION POLICY
The Board on the recommendation of the Nomination and
Remuneration Committee had adopted the policy for selection,
appointment and remuneration of Directors, Key Managerial
Personnel and Senior Management.
The Company’s policy on directors’ appointment and
remuneration and other matters provided in section 178(3) of the
Act and rules framed thereunder as amended, has been
disclosed on the Company’s website at
http://www.otis.com/site/in/pages/Investor_Relations.aspx?me
nuID=6
NUMBER OF MEETINGS OF THE BOARD
The Board met five times during the financial year 2016-17 on
June 20 2016, August 05, 2016, November 21, 2016, February
14, 2017 and March 07, 2017. The necessary quorum was
present for all the meetings. The maximum interval between any
two meetings did not exceed 120 days.
Details of attendance of directors at the Board Meetings and
Annual General Meeting (AGM) during the financial year 2016-
17 are provided below:
Name Designation Number of Board Whether attended
Meetings
attended
+Mr. Sebi Joseph Managing Director 4 Yes
^Mr. P S Dasgupta Non-Executive 3 Yes
independent Director
Ms. Suma P N Director 5 Yes
*Mr. Nirmal Kumar Mohanty Director 3 No
##Mr. Anil Vaish Non- Executive 4 No
Independent Director
+Mr. Sebi Joseph did not attend the Board meeting held on
February 14, 2017.
^Mr. P S Dasgupta did not attend the Board meetings held on
November 21, 2016 and February 14, 2017.
*Mr. Nirmal Kumar Mohanty did not attend the Board meetings
held on November 21, 2016 and March 07, 2017.
12
# Mr. Anil Vaish did not attend the Board meeting held on March
07, 2017.
AUDIT COMMITTEE
The constitution of the Audit Committee, its scope, role and
terms of reference are as per the provisions of the Companies
Act, 2013, and the Rules framed thereunder as amended. All the
recommendations made by the Audit Committee were accepted
by the Board.
The members of the Audit Committee are as under:
1. Mr. P S Dasgupta, Independent Director -Chairman
2. Mr. Anil Vaish, Independent Director – Member
3. Mr. Sebi Joseph -Member
AUDITORS
M/s. Price Waterhouse & Co LLP Bangalore, Chartered
Accountants (FRN 007567S/S-200012), were appointed as
Statutory Auditors to hold office from the conclusion of the 61st
Annual General Meeting (“AGM”) to the conclusion of the 63rd
AGM.
Pursuant to the provisions of Section 139 of the Companies Act,
2013 (“Act”) and the Rules framed thereunder as amended, an
additional transition period of three years from the
commencement of the Act was provided to appoint a new auditor
when the existing Audit Firm (including its affiliate firms) would
complete their two terms of five consecutive years.
M/s. Price Waterhouse & Co. Bangalore LLP (along with its
network Firms) have completed period of ten years and will also
complete the additional transition period of three years at the
conclusion of the forthcoming 63rd AGM.
Pursuant to Section 139 of the Act and on the recommendation
of the Audit Committee, it is now proposed to appoint M/s. BSR
& Co. LLP, Chartered Accountants (FRN 101248W/W- 100022),
as Statutory Auditors of the Company for a term of 5 (five) years
from the conclusion of 63rd AGM until the conclusion of 68th
AGM. The said Auditors have given their eligibility certificate in
terms of Section 139 of the Companies Act, 2013.
A Resolution seeking the appointment of M/s. BSR & Co. LLP,
Chartered Accountants (FRN 101248W/W- 100022), as
Statutory Auditors of the Company forms part of the Notice
convening the 63rd AGM and the same is recommended for the
last AGM held on members approval.
September 22, 2016
During the year under review, the retiring Auditors have not
reported any matter under section 143(12) of the Act and
therefore no details are disclosed under Section 134 (3) (ca) of
the Act.
The Auditors' Report for the financial year 2016-17 does not
contain any qualifications, reservations or adverse remarks.
COST AUDITORS
The Board of Directors at its Meeting held on August 10, 2017,
based on the recommendation of the Audit Committee, re-
appointed, M/s. Kishore Bhatia & Associates, (FRN: 00294)
Cost Accountants, Mumbai as the Cost Auditor of the Company
for undertaking cost audit of the Cost Accounting Records to be
maintained by the Company for the financial year 2017-18 at a
remuneration of Rs.1,90,000/- (Rupees One Lakh Ninety
DIRECTORS’ REPORT
Thousand) plus applicable taxes and out-of pocket expenses at
actuals. The said Auditors have given their eligibility certificate
for appointment as Cost Auditors. The remuneration payable to
the said Cost Auditors needs to be ratified by members at the
ensuing 63rd Annual General Meeting. The Cost Audit Report
for the financial year 2015-16, was filed with the Ministry of
Corporate Affairs on September 2, 2016.
SECRETARIAL AUDITOR
Pursuant to the provision of Section 204 of Companies Act, 2013
read with the Rules framed there under, the Board has
appointed M/s. JSP Associates, Company Secretary in Practice
(having Firm Registration Number S2004MH073200), to
undertake Secretarial Audit of the Company for the Financial
Year 2016-17. The Secretarial Audit Report does not contain any
qualification, reservation or adverse remark. Report of the
secretarial auditor is annexed as Annexure-A which forms part
of this report.
ENERGY CONSERVATION, TECHNOLOGY, ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The particulars as required under Section 134(3) (m) of the
Companies Act, 2013, and Rules made thereunder as amended
are set out in Annexure-B to this Report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 197(12) of the Companies
Act, 2013 read with Rule (5) (2) and Rule (5) (3) of The
Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 as amended, a statement showing the
names and other particulars of the employees drawing
remuneration in excess of the limits set out in the said Rules is
annexed as Annexure- C to this Report.
EXTRACT OF ANNUAL RETURN
The Extract of the Annual Return in Form No. MGT-9 as per
Section 134 (3) (a) of the Companies Act, 2013 and Rules made
thereunder as amended is annexed as Annexure-D to this
Report.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company has been supporting charitable and social
causes in the communities, where it does business. The CSR
Committee of the Board of Directors of the Company consists of
Mr Sebi Joseph - Chairman of the CSR Committee, Mr P S
Dasgupta - Independent Director and Ms Suma P – Director.
The present CSR initiatives focus is on promoting education a
recognised activity mentioned in Schedule VII of the Companies
Act, 2013. The Company’s CSR policy is available on the
website of the Company and the report on Corporate Social
Responsibility (CSR) activities as required under Section 135 of
the Companies Act, 2013 is annexed as Annexure-E to this
Report.
During the year under review, the Company has spent 2% of the
average profits, for the last three financial years as stipulated in
the Companies Act, 2013 read with the Rules framed
thereunder, as amended.
RELATED PARTY TRANSACTIONS
All the Related Party Transactions that were entered into during
the financial year under review were in ordinary course of
business and on arm’s length basis. The Audit Committee has
given its approval for the Related Party Transactions. The
material transactions on arm’s length basis are furnished in the
prescribed Form- AOC 2 is annexed to this Report as Annexure-
F.
INTERNAL FINANCIAL CONTROLS
The Company has an adequate internal financial control with
reference to the Financial Statements operating effectively for
ensuring the accuracy and completeness of the accounting
records.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013
The Company has in place a Prevention of Sexual Harassment
Policy in line with the requirements of the Sexual Harassment of
Women at the Workplace (Prevention, Prohibition & Redressal)
Act, 2013. Internal Complaints Committee (ICC) has been set up
to redress complaints received regarding sexual harassment.
The Policy has set guidelines on the redressal and enquiry
process that is to be followed by complainants and the ICC,
whilst dealing with issues related to sexual harassment at the
work place. All employees (permanent, contractual, temporary,
trainees), third parties who deal with our Company are covered
under this Policy. The Company has not received any complaints
during the year.
ACKNOWLEDGEMENTS:
Your Directors acknowledge the support and wise counsel
extended to the Company by analysts, bankers, government
agencies, members, investors, suppliers, distributors and others
associated with the Company as its business partners for their
continued and unstinted support.
For and on behalf of the Board of Directors
Sebi Joseph Suma P N
Managing Director Director
DIN 05221403 DIN 05350680
Mumbai, August 10, 2017
13
Annual Report 2016 - 2017
ANNEXURE A TO THE DIRECTORS' REPORT
SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2017
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]
To,
The Members
Otis Elevator Company (India) Limited
Magnus Tower, 9th Floor,
Mind Space, Link Road
Malad (West),
Mumbai – 400 064
I have conducted the Secretarial Audit of the compliance of
applicable statutory provisions and the adherence to corporate
practices by Otis Elevator Company (India) Limited
(hereinafter called 'the Company') for the audit period covering
the financial year ended on 31st March, 2017 (the 'audit period').
Secretarial Audit was conducted in a manner that provided me a
reasonable basis for evaluating the corporate conducts /
statutory compliances and expressing my opinion thereon.
Based on my verification of the Company's books, papers,
minute books, forms and returns filed and other records
maintained by the Company and also the information provided
by the Company, its officers, agents and authorized
representatives during the conduct of Secretarial Audit, and
subject to my separate letter attached as Annexure I; I hereby
report that in my opinion, the Company has, during the audit
period generally complied with the statutory provisions listed
hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent, in
the manner and subject to the reporting made hereinafter.
I have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for
the financial year ended on 31st March, 2017 according to the
provisions of:
(I) The Companies Act, 2013 ('the Act') and the Rules made
thereunder;
(ii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
(iii) Foreign Exchange Management Act, 1999 and the Rules
and Regulations made thereunder to the extent of Foreign
Direct Investment;
(iv) The following Regulations prescribed under the Securities
and Exchange Board of India Act, 1992 ('SEBI Act'):-
(a) The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client;
I have also examined compliance with the applicable clauses of
the Secretarial Standards issued by the Institute of Company
Secretaries of India related to meetings and minutes.
During the period under review, the Company has generally
complied with the provisions of the Act, Rules, Regulations,
Standards mentioned above.
During the period under review, provisions of the following
regulations were not applicable to the Company:
(i) The Securities Contracts (Regulation) Act, 1956 (SCRA)
and the Rules made thereunder;
(ii) The Securities and Exchange Board of India (Substantial
Acquisition of Shares and Takeovers) Regulations, 2011;
(iii) The Securities and Exchange Board of India (Prohibition
14
of Insider Trading) Regulations, 2015;
(iv) The Securities and Exchange Board of India (Issue of
Capital and Disclosure requirements) Regulations, 2009;
(v) The Securities and Exchange Board of India (Share
Based Employee Benefits) Regulations, 2014;
(vi) The Securities and Exchange Board of India (Issue and
Listing of Debt Securities) Regulations, 2008;
(vii) The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009;
(viii) The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 1998;
(ix) The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations,
2015;
I further report that -
The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition of
the Board of Directors that took place during the period under
review were carried out in compliance with the provisions of the
Act.
Proper notice was given to all Directors to schedule the Board
meetings in compliance with the provisions of Section 173(3) of
the Companies Act, 2013, agenda and detailed notes on agenda
were generally sent at least seven days in advance, and a
system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.
Decisions at the meetings of the Board of Directors of the
Company were carried through on the basis of majority. There
were no dissenting views by any member of the Board of
Directors during the period under review.
I further report that –
There are adequate systems and processes in the Company
commensurate with the size and operations of the Company to
monitor and ensure compliance with applicable laws, rules,
regulations.
I further report that during the audit period, the Company has
acquired 20% equity stake (in addition to the existing 80%) in its
subsidiary company namely, Supriya Elevators Company (India)
Limited (“Supriya”) and as a result of which Supriya has become
the wholly owned subsidiary of Otis Elevator Company (India)
Limited.
For JSP Associates
Company Secretary
[Firm Regn. No. S2004MH073200]
Jatin Popat
Proprietor
FCS 4047/ CP No. 6880
Place: Mumbai
Date: 10th August, 2017
ANNEXURE A TO THE DIRECTORS' REPORT
Annexure I to the Secretarial Audit Report for the nancial year ended 31st March, 2017

To,
The Members
Otis Elevator Company (India) Limited
Magnus Tower, 9th Floor,
Mind Space, Link Road
Malad (West),
Mumbai – 400 064

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

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

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

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

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

For JSP Associates

Company Secretary
[Firm Regn. No. S2004MH073200]

Jatin Popat
Proprietor
FCS 4047/ CP No. 6880

Place: Mumbai
Date: 10th August, 2017

15
Annual Report 2016 - 2017

ANNEXURE B TO THE DIRECTORS' REPORT

Information Pursuant to Section 134 (3) (m) of the Companies Act, 2013 Read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 for the year ended March 31, 2017.
(A) Conservation of energy –
(i) The steps taken or impact on conservation of energy:

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

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

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

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

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

(B) Technology absorption –

(i) The efforts made towards technology absorption:

Research & Development (R&D)

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

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

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

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

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

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

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

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

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

(a) The details of technology imported;

(b) The year of import;

(c) Whether the technology been fully absorbed;

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

(iv) The expenditure incurred on Research and Development: Revenue expenditure of

Rs. 134,126,720 & Capital expenditure Rs.9,068,780.

(C) Foreign exchange earnings and Outgo –

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

For and on behalf of the Board of Directors

Sebi Joseph Suma P N

Managing Director Director
DIN 05221403 DIN 05350680
Place: Mumbai
Date: August 10, 2017
16
ANNEXURE C TO THE DIRECTORS' REPORT
Pursuant to section 197 (12) of the Companies Act,2013, and Rules 5 of the Companies (Appointment and Remuneration of
Managerial Personnel) Ammendment Rules, 2016
A. The name of the top ten Employees Employed throughout the nancial year and was in receipt of remuneration
aggregating not less than Rs. 1,02,00,000 per annum

Name Designation Remuneration Date of Age Qualication Experi- Last Designation

(in INR) commencement (years) ence Employment In Last
of employment in years Emp loy ment
Sebi Joseph President Otis India 36,874,681 1st March 2012 55 BE (Mech), MBA 30 Otis SEMA UAE Area Director -
Gulf Region
Sanjay Sudhakaran Director - Marketing & Sales 17,832,101 1st March 2014 45 BE (Production) 24 UTC CCS India Mg Director CCS
Strategy and Service Sales Solutions Divn
Dheeraj Vohra Sr. Director- Operations 17,294,758 1st April 2012 47 BE (Production), MBA 25 UTC India Pvt Ltd Director Operations
& FOD
Wilfred Stephen Dsouza Director - North Region 14,526,963 9th November 1987 51 Director - North Region 30 – –

Suma P N Director - Human Resources 14,387,872 5th August 2013 48 PG in personnel Mgmt 28 UTC India Pvt Ltd Director - HR
& IR, MBA
K Manivannan Director - West Region 13,720,512 25th October 2011 51 Diploma Electrical 31 Kone Elevators India Regional Director
Engg., MBA, Pvt Ltd (East& West)
Mitesh Mittal Director Finance 11,017,788 17th March 2014 39 CA, CPA, CS, MBA 20 CCS BIS India CFO - CCS India
Solutions Div.
Jitin Wasan Director- Legal 10,944,985 22nd October, 2012 41 LLB, CS, B.com 18 Bharati Airtel Ltd VP- Legal &
Compliance

B. Employed for part of the nancial year and was in receipt of remuneration aggregating not less than Rs. 8,50,000 per month
Name Designation Remuneration Date of Age Qualication Experi- Name of the Designation
(in INR) commencement (years) ence Company with In Last
of employment in years which last Employment
with us employed &
designation
Paresh Kariya Director - Business 5,112,304 5th April 2011 51 BE (Mech), Doctor of 28 Elecon Engg. Co. Ltd Marketing Manager
Development, Head-JV's Business Admin, Master
of Mgmt (Mkt)

Alok Mahajan Director - North Region 1,314,764 2nd January 2013 47 BE (Electrical) 25 Zayani Otis Elevator General Manager
Company

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

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

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

For and on behalf of the Board of Directors

Sebi Joseph Suma P N

Managing Director Director
Place: Mumbai DIN 05221403 DIN 05350680
Date: August 10, 2017

17
Annual Report 2016 - 2017

ANNEXURE D TO THE DIRECTORS' REPORT

FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31, 2017.
(Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration )
Rules, 2014.)

I REGISTRATION & OTHER DETAILS:

i CIN U29150MH1953PLC009158
ii Registration Date October 30, 1953
iii Name of the Company OTIS ELEVATOR CO (INDIA) LTD
iv Category of the Company PUBLIC COMPANY
v Address of the Registered ofce & contact details
Address : MAGNUS TOWERS, 9TH FLOOR, MINDSPACE, LINK ROAD,
MALAD WEST
Town / City : MUMBAI - 400064
State : MAHARASHTRA
Country Name : INDIA
Telephone (with STD Code) : 022 - 28449700
Fax Number : 022 - 28449791
Email Address : tanhieya.ghosh@otis.com
Website, if any: www.otis.com
vi Whether listed company NO
vii Name, Address & contact details of the
Registrar & Transfer Agent, if any.
Name of RTA: LINK INTIME INDIA PRIVATE LIMITED

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

Town / City : MUMBAI – 400083

State : MAHARASHTRA
Telephone : 022-49186270
Fax Number : 022-49106060
Email Address : rnt.helpdesk@linkintime.co.in

II. PRINCIPAL BUSINESS ACTIVITY OF THE COMPANY

Sl. Name and Description of main NIC Code of the % to total turnover
No. products / services products / services* of the company
1 Manufacture and Maintenance of Elevator/Lifts 2915* 100%
* Source: As per NIC-2004 available on site of Ministry of Corporate Affairs
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
No. of Companies for which information is being filled 2

S. NAME AND ADDRESS CIN/GLN HOLDING/ % of shares Applicable

No. OF THE COMPANY SUBSIDIARY held Section
/ ASSOCIATE
1 Supriya Elevator Company U29150TN2008PLC068160 Subsidiary 100.00 2(87)
(India) Limited
2. Trio Elevators Company U33103GJ2006PLC048885 Associate 19.90 2(6)
(India) Limited

18
ANNEXURE D TO THE DIRECTORS' REPORT
FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31, 2017

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding

Category of No. of Shares held at the beginning No. of Shares held at the end
Shareholders of the year (as on April 1, 2016) of the year (as on March 31, 2017) % Change
Demat Physical Total % of Total Demat Physical Total % of Total during
Shares Shares the year

A. Promoters
(1) Indian
a) Individual/ HUF 0 0 0 0% 0 0 0 0% 0%
b) Central Govt 0 0 0 0% 0 0 0 0% 0%
c) State Govt(s) 0 0 0 0% 0 0 0 0% 0%
d) Bodies Corp. 0 0 0 0% 0 0 0 0% 0%
e) Banks / FI 0 0 0 0% 0 0 0 0% 0%
f) Any other 0 0 0 0% 0 0 0 0% 0%
Sub-Total (A) (1) 0 0 0 0% 0 0 0 0% 0%
(2) Foreign
a) NRI - Individuals 0 0 0 0% 0 0 0 0% 0%
b) Other - Individuals 0 0 0 0% 0 0 0 0% 0%
c) Bodies Corp. 11599819 0 11599819 98.24% 11599819 0 11599819 98.24% 0%
d) Banks / FI 0 0 0 0% 0 0 0 0% 0%
e) Any other 0 0 0 0% 0 0 0 0% 0%
Sub-Total (A) (2) 11599819 0 11599819 98.24% 11599819 0 11599819 98.24% 0%
Total shareholding of
Promoter
(A)=(A)(1) +(A)(2) 11599819 0 11599819 98.24% 11599819 0 11599819 98.24% 0%
B. Public Shareholding
1. Institutions
a) Mutual Funds 25 0 25 0% 25 0 25 0.00% 0%
b) Banks / FI 114 963 1077 0.01% 164 963 1127 0.01% 4.64
c) Central Govt 0 0 0 0% 0 0 0 0.00% 0%
d) State Govt(s) 0 0 0 0% 0 0 0 0.00% 0%
e) Venture Capital Funds 0 0 0 0% 0 0 0 0.00% 0%
f) Insurance Companies 50 0 50 0% 0 0 0 0.00% (100)
g) FIIs 0 0 0 0% 0 0 0 0.00% 0%
h) Foreign Venture Capital Funds 0 0 0 0% 0 0 0 0.00% 0%
i) Others (specify) 0 0 0 0% 0 0 0 0.00% 0%
Sub-total (B) (1):- 189 963 1152 0.01% 189 963 1152 0.01% 0%

2. Non-Institutions
a) Bodies Corp.
i) Indian 4624 1814 6438 0.05% 7319 0 7319 0.06% 13.68
ii) Overseas 0 0 0 0% 0 0 0 0.00% 0%
b) Individuals
i) Individual shareholders
holding nominal share
capital upto Rs. 1 lakh 105445 88965 194410 1.65% 103850 89076 192926 1.63% (0.76)
ii) Individual shareholders
holding nominal share capital
in excess of Rs 1 lakh 0 0 0 0% 0 0 0 0.0% 0%

19
Annual Report 2016 - 2017

ANNEXURE D TO THE DIRECTORS' REPORT

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

Category of No. of Shares held at the beginning No. of Shares held at the end
Shareholders of the year (as on April 1, 2016) of the year (as on March 31, 2017)

Demat Physical Total % of Total Demat Physical Total % of Total % Change

Shares Shares during
the year
c) Others (specify)
Individuals 5958 445 6403 0.05% 6561 445 7006 0.06% 9.42
Non Domestic Company
Sub-total (B)(2):- 116027 91224 207251 1.76% 117730 89521 207251 1.75% 0%
Total Public Shareholding
(B)=(B)(1)+ (B)(2) 116216 92187 208403 1.77% 117919 90484 208403 1.76% 0%
C. Shares held by Custodian
for GDRs & ADRs 0 0 0 0.00% 0 0 0 0% 0%

Grand Total (A+B+C) 11716035 92187 11808222 100% 11717738 90484 11808222 100 % 0%

ii Shareholding of Promoters
Shareholding at the beginning ofthe year Share holding at the end of the year
Sl Shareholder’s Name No. of % of total % of Shares No. of % of total % of Shares % change
No. Shares Shares of Pledged / Shares Shares of Pledged / in share
the encumbered the encumbered holding
company to total company to total during
share shares the year
1 United Technologies South 11599819 98.24% 0% 11599819 98.24% 0% N.A.
Asia Pacific Pte. Ltd.
TOTAL 1599819 98.24% 0% 11599819 98.24% 0% N.A.

iii Change Promoters’ Shareholding : Not Applicable

Shareholding at the Cumulative Shareholding
Sl. No. I - Mr.___________________________ beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
At the beginning of the year 0 0% 0 0%
Changes During the Year
Increase
Date Reason for Increase
0 Allotment 0 0% 0 0%
0 Bonus 0 0% 0 0%
0 Sweat 0 0% 0 0%
0 Other 0 0% 0 0%
Decrease
Date Reason for Decrease
0 Transfer 0 0% 0 0%
0 Other 0 0% 0 0%
At the End of the year 0 0 0%

20
ANNEXURE D TO THE DIRECTORS' REPORT
FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31, 2017

iv Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Change in
Shareholding at the Shareholding Shareholding at the
beginning of the year (Number of Shares) end of the year
No. of % of total Increase Decrease No. of % of total
Sl. No.: 1 For each of the Top 10 Shareholders shares shares of shares shares of
the the
company company
1. Vinod Dadlani 6114 0.05% 178 0 6292 0.05%
2. Pushpa Jagannath 2988 0.03% 0 0 2988 0.03%
3. RTG Share Broking Limited 2988 0.03% 0 0 2988 0.03%
4. Arjan Thawardas Hathiramani 2850 0.02% 0 0 2850 0.02%
5. Ashoke Dass 2390 0.02% 0 0 2390 0.02%
6. Yunus Zia 2300 0.02% 0 0 2300 0.02%
7. Mohammad Junaid Farooq 2200 0.02% 0 0 2200 0.02%
8. Nariman Hormusji Daroowala 2158 0.02% 0 0 2158 0.02%
9. Anjana Vasant Jhaveri 2086 0.02% 0 0 2086 0.02%
10. Zainuddin Hatim Popat 2030 0.02% 0 0 2030 0.02%
* The details of holding has been clubbed based on PAN.
# % of total Shares of the Company is based on the paid up Capital of the Company at the end of the Year.

v Shareholding of Directors and Key Managerial Personnel: Not Applicable

Shareholding at the Cumulative Shareholding
Sl. No. I - Mr.___________________________ beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of the shares of the
company company
At the beginning of the year 0 0% 0 0%
Changes During the Year
Increase
Date Reason for Increase
0 Allotment 0 0% 0 0%
0 Bonus 0 0% 0 0%
0 Sweat 0 0% 0 0%
0 Other 0 0% 0 0%
Decrease
Date Reason for Decrease
0 Transfer 0 0% 0 0%
0 Other 0 0% 0 0%
At the End of the year 0 0% 0%

21
Annual Report 2016 - 2017

ANNEXURE D TO THE DIRECTORS' REPORT

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

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

Indebtedness at the beginning of the Secured Loans Unsecured Deposits Total

nancial year excluding Loans Indebtness
deposits
i) Principal Amount N.A. N.A. N.A. N.A.
ii) Interest due but not paid N.A. N.A. N.A. N.A.
iii) Interest accured but not due N.A. N.A. N.A. N.A.
Total (i+ii+iii) N.A. N.A. N.A. N.A.
Change in Indebtedness during the Secured Loans Unsecured Deposits Total
nancial year excluding Loans Indebtness
deposits
* Addition N.A. N.A. N.A. N.A.
* Reduction N.A. N.A. N.A. N.A.
Net Change N.A. N.A. N.A. N.A.
Indebtedness at the end of the Secured Loans Unsecured Deposits Total
nancial year excluding Loans Indebtness
deposits
i) Principal Amount N.A. N.A. N.A. N.A.
ii) Interest due but not paid N.A. N.A. N.A. N.A.
iii) Interest accured but not due N.A. N.A. N.A. N.A.
Total (i+ii+iii) N.A. N.A. N.A. N.A.

VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

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

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

no. Sebi Joseph Amount
Managing Director

1 Gross salary
(a) Salary as per provisions contained
in section 17(1) of the Income-tax Act, 1961 29,729,816 29,729,816
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 5,533,350 5,533,350
(c) Profits in lieu of salary under section
17(3) Income- tax Act, 1961 - -

2 Stock Option 1,611,515 1,611,515

3 Sweat Equity - -
4 Commission - -
- as % of profit - -
- others, specify - -
5 Others, please specify - -
Total (A) 36,874,681 36,874,681

22
ANNEXURE D TO THE DIRECTORS' REPORT
FORM NO. MGT 9 - EXTRACT OF ANNUAL RETURN AS ON FINANCIAL YEAR ENDED ON MARCH 31, 2017

B. Remuneration to other Directors: (Amount in Rs.)

Sl. Particulars of Remuneration Name of Directors Total Amount
no. Mr. P. S. Dasgupta Mr. Anil Vaish
1. Independent Directors
Fee for attending board & 1,40,000 1,60,000 3,00,000
committee meetings
Commission 6,00,000 - 6,00,000
Others, please specify - - -
Total (1) 7,40,000 1,60,000 9,00,000
2 Other Non-Executive Directors
Fee for attending board - - -
committee meetings
Commission - - -
Others, please specify - - -
Total (2) - - -
Total (B)=(1+2) 7,40,000 1,60,000 9,00,000
Total Managerial Remuneration - -

C. Remuneration To Key Managerial Personnel Other Than MD/Manager/WTD (Amount in Rs.)

Sl. Particulars of Remuneration Key Managerial Personnel
no. Sanu Kapoor Mitesh Mittal Total
Company Secretary CFO
1 Gross salary
(a) Salary as per provisions contained
in section 17(1) of the Income-tax Act, 1961 2,529,096 1,07,10,564 1,32,39,660
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 1,84,575 3,07,224 4,91,799
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961 - - -
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission
- as % of profit - - -
- others, specify… - - -
5 Others, please specify - - -
Total 27,13,671 1,10,17,788 1,37,31,459

VIII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES: Nil

Type Section of the Brief Details of Penalty / Authority Appeal made,

Companies Act Description Punishment/ Compounding [RD / NCLT / COURT] if any (give Details)
fees imposed

A. COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. DIRECTORS
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
C. OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -

23
Annual Report 2016 - 2017

ANNEXURE E TO THE DIRECTORS' REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THE FINANCIAL YEAR 2016-2017.
1. A brief outline of the Company's CSR policy, including overview of projects or programs proposed to be undertaken and a reference to the
web-link to the CSR policy and projects or programs.
Otis Elevator Company (India) Limited has been supporting charitable and social causes in the communities. In line with the requirements
of Section 135 of the Companies Act, the Company has instituted a CSR Policy, duly approved by the Board. The policy highlights the key
areas of focus for the Company. The present CSR initiatives focus is on promoting education a recognised activity mentioned in Schedule
VII of the Companies Act, 2013.
The Company’s CSR policy is available on the Company’s website at http://www.otis.com/site/in/pages/CSR_Policy.aspx?menuID=6
2. The Composition of CSR Committee
Mr. Sebi Joseph – Chairman & Managing Director.
Mr. P S Dasgupta – Independent Director
Ms. Suma P N – Director

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

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

Rs. 360 lakhs

5. Details of CSR spent during the nancial year.

(a) Total amount to be spent for the financial year: Rs. 360 lakhs
(b) Total amount spent for the Financial Year: Rs. 361 lakhs
(c) Amount unspent : Nil
(d) Manner in which the amount spent during the financial year is detailed below6.
(Rs. in lakhs)
Sr. CSR Project / Sector in Projects or program Amount Amount Spent Cumulative Amount spent:
No. Activity which the (1) Local area or other outlay Sub-heads: expenditure Direct or
project is (2) Specify the State (budget) 1. Direct expenditure on up to the Implementing
covered District where projects or project or projects or programs reporting Agency
(Schedule VII) programs was undertaken programs 2. Overheads period
(1) (2) (3) (4) (5) (6) (7) (8)
1 Education Promoting Trichur, Rourkela, Raipur, 250 Direct Expenditure 876 NGO -“ SOS
Project “Shine” Education Pune, Pondicherry, Children's
nagapattinam, Kolkatta, Villages of India”
Jaipur, Hyderabad, Guwahati,
Greenfields, Cochin, Chennai,
Bhuj, Bhopal, Bawana,
Bangalore, Alibaug.
2 Skilling Project Promoting Bangalore, Belgaum, Delhi, 48 Direct Expenditure 48 NGO -
Education Hyderabad & Jharkhand. “Samarthanam
Trust for
Disabled”

3 Education Promoting Tamil Nadu, Karnataka, 56 Direct Expenditure 56 NGO- “Mother

Project Education Kerala, Telangana, Andra Teresa
Pradesh, West Bengal, Charitable Trust”
Puduchery Union Territory.
4 Incidental Incidental Local 7 Overheads 12 Direct
Expenses Expenses
TOTAL 361 992

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

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

Sebi Joseph
Place: Mumbai (DIN: 05221403)
Date: August 10, 2017 Managing Director & Chairman of CSR Committee

24
ANNEXURE F TO THE DIRECTORS' REPORT
FORM AOC-2

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

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm's length transaction under third proviso
thereto: N.A.

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

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

b) Nature of contracts/arrangements/transactions : N.A.
c) Duration of the contracts/arrangements/transactions : N.A.
d) Salient terms of the contracts or arrangements or transaction including the value, if any : N.A.
e) Justification for entering into such contracts or arrangements or transactions : N.A.
f) Date(s) of approval by the Board : N.A.
g) Amount paid as advances, if any : N.A.
h) Date on which the special resolution was passed in General meeting as required under first proviso to section 188 : N.A.

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

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

b) Nature of contracts/arrangements/transactions : N.A.
c) Duration of the contracts/arrangements/transactions : N.A.
d) Salient terms of the contracts or arrangements or transaction including the value, if any : N.A.
e) Date(s) of approval by the Board, if any : N.A.
f) Amount paid as advances, if any : N.A.

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

For and on behalf of the Board of Directors

Sebi Joseph Suma P N

Managing Director Director
DIN 05221403 DIN 05350680
Place: Mumbai
Date : August 10, 2017

25
Annual Report 2016 - 2017
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF OTIS ELEVATOR COMPANY (INDIA) LIMITED
Report on the Standalone Indian Accounting Standards
(Ind AS) Financial Statements
1. We have audited the accompanying standalone financial
statements of Otis Elevator Company (India) Limited (“the
Company”), which comprise the Balance Sheet as at
March 31, 2017, the Statement of Profit and Loss
(including Other Comprehensive Income), the Cash Flow
Statement and the Statement of Changes in Equity for the
year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management’s Responsibility for the Standalone Ind
AS Financial Statements
2. The Company’s Board of Directors is responsible for the
matters stated in Section 134(5) of the Companies Act,
2013 (“the Act”) with respect to the preparation of these
standalone Ind AS financial statements to give a true and
fair view of the financial position, financial performance
(including other comprehensive income), cash flows and
changes in equity of the Company in accordance with the
accounting principles generally accepted in India,
including the Indian Accounting Standards specified in the
Companies (Indian Accounting Standards) Rules, 2015
(as amended) under Section 133 of the Act. This
responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the standalone Ind AS
financial statements that give a true and fair view and are
free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these
standalone Ind AS financial statements based on our
audit.
4. We have taken into account the provisions of the Act and
the Rules made thereunder including the accounting and
auditing standards and matters which are required to be
included in the audit report under the provisions of the Act
and the Rules made thereunder.
5. We conducted our audit of the standalone Ind AS financial
statements in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other
applicable authoritative pronouncements issued by the
Institute of Chartered Accountants of India. Those
Standards and pronouncements require that we comply
with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the
standalone Ind AS financial statements are free from
material misstatement.
26
6. An audit involves performing procedures to obtain audit
evidence about the amounts and the disclosures in the
standalone Ind AS financial statements. The procedures
selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the
standalone Ind AS financial statements, whether due to
fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the
Company’s preparation of the standalone Ind AS financial
statements that give a true and fair view, in order to design
audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the
Company’s Directors, as well as evaluating the overall
presentation of the standalone Ind AS financial
statements.
7. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the standalone Ind AS financial statements.
Opinion
8. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone Ind AS financial statements give the
information required by the Act in the manner so required
and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the
state of affairs of the Company as at March 31, 2017, and
its total comprehensive income (comprising of profit and
other comprehensive income), its cash flows and the
changes in equity for the year ended on that date.
Other Matter
9. The financial information of the Company for the year
ended March 31, 2016 and the transition date opening
balance sheet as at April 1, 2015 included in these
standalone Ind AS financial statements, are based on the
previously issued statutory financial statements for the
years ended March 31, 2016 and March 31, 2015,
prepared in accordance with the Companies (Accounting
Standards) Rules, 2006 (as amended) which were audited
by us, on which we expressed an unmodified opinion
dated August 10, 2016 and August 19, 2015, respectively.
The adjustments to those financial statements for the
differences in accounting principles adopted by the
Company on transition to the Ind AS have been audited by
us.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor’s Report) Order,
2016, issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act (“the Order”),
and on the basis of such checks of the books and records
of the Company as we considered appropriate and
according to the information and explanations given to us,
we give in the Annexure B a statement on the matters
specified in paragraphs 3 and 4 of the Order.
INDEPENDENT AUDITORS' REPORT
11. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss
(including other comprehensive income), the Cash
Flow Statement and the Statement of Changes in
Equity dealt with by this Report are in agreement
with the books of account.
d) In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Indian
Accounting Standards specified under Section 133
of the Act.
e) On the basis of the written representations received
from the directors as on March 31, 2017 taken on
record by the Board of Directors, none of the
directors is disqualified as on March 31, 2017 from
being appointed as a director in terms of Section 164
(2) of the Act.
f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to
our separate Report in Annexure A.
g) With respect to the other matters to be included in
the Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our knowledge and
belief and according to the information and
explanations given to us:
(I) The Company has disclosed the impact of pending
litigations as at March 31, 2017 on its financial
position in its standalone Ind AS financial
statements – Refer Notes 20 and 46 to the
standalone Ind AS financial statements.
(ii) The Company has made provision as at March 31,
2017, as required under the applicable law or
accounting standards, for material foreseeable
losses, if any, on long-term contracts - Refer Note 26
to the standalone Ind AS financial statements. The
Company did not have long term derivative contracts
as at March 31, 2017.
(iii) There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company during the year ended March
31, 2017.
(iv) The Company has provided requisite disclosures in
the financial statements as to holdings as well as
dealings in Specified Bank Notes during the period
from November 8, 2016 to December 30, 2016.
Based on audit procedures and relying on the
management representation we report that the
disclosures are in accordance with books of account
maintained by the Company and as produced to us
by the Management – Refer Note 14 to the
standalone Ind AS financial statements.
For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/S-200012
Chartered Accountants
Asha Ramanathan
Partner
Membership Number: 202660
Place: Mumbai
Date: August 17, 2017
27
Annual Report 2016 - 2017
ANNEXURE A TO INDEPENDENT AUDITORS' REPORT
Referred to in paragraph 11(f) of the Independent Auditors' Report of even date to the members of Otis Elevator
Company (India) Limited on the standalone Ind AS nancial statements for the year ended March 31, 2017
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over
financial reporting of Otis Elevator Company (India)
Limited (“the Company”) as of March 31, 2017 in
conjunction with our audit of the standalone Ind AS
financial statements of the Company for the year ended on
that date.
Management's Responsibility for Internal Financial
Controls
2. The Company's management is responsible for
establishing and maintaining internal financial controls
based on the internal control over financial reporting
criteria established by the Company considering the
essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of
Char tered Accountants of India (ICAI). These
responsibilities include the design, implementation and
maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to
company's policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information,
as required under the Act.
Auditors' Responsibility
3. Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the
“Guidance Note”) and the Standards on Auditing under
section 143(10) of the Act to the extent applicable to an
audit of internal financial controls, both applicable to an
audit of internal financial controls and both issued by the
ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial
reporting was established and maintained and if such
controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system over financial reporting and their
operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an
understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and
operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the
auditor's judgement, including the assessment of the risks
of material misstatement of the financial statements,
whether due to fraud or error.
5. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls
system over financial reporting.
28
Meaning of Internal Financial Controls Over Financial
Reporting
6. A company's internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company's internal financial
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being made
only in accordance with authorisations of management
and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the
company's assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting
7. Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of
the internal financial controls over financial reporting to
future periods are subject to the risk that the internal
financial control over financial reporting may become
inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects,
an adequate internal financial controls system over
financial reporting and such internal financial controls over
financial reporting were operating effectively as at March
31, 2017, based on the internal control over financial
reporting criteria established by the Company considering
the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of
Chartered Accountants of India.
For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/S-200012
Chartered Accountants
Asha Ramanathan
Partner
Membership Number: 202660
Place: Mumbai
Date: August 17, 2017
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the members of Otis Elevator
Company (India) Limited on the standalone Ind AS nancial statements as of and for the year ended March 31, 2017
i. (a) The Company is maintaining proper records
showing full particulars, including quantitative
details and situation, of fixed assets.
(b) The fixed assets are physically verified by the
Management according to a phased programme
designed to cover all the items over a period of three
years which, in our opinion, is reasonable having
regard to the size of the Company and the nature of
its assets. Pursuant to the programme, a portion of
the fixed assets has been physically verified by the
Management during the year and no material
discrepancies have been noticed on such
verification.
(c) The title deeds of immovable properties, as
disclosed in Note 4 on Property Plant and
Equipment to the financial statements, are held in
the name of the Company.
ii. The physical verification of inventory [excluding
stocks with third parties and stocks in transit] have
been conducted at reasonable intervals by the
Management during the year. In respect of
inventory lying with third parties, these have
substantially been confirmed by them. The
discrepancies noticed on physical verification of
inventory as compared to book records were not
material.
iii. The Company has not granted any loans, secured or
unsecured, to companies, firms, Limited Liability
Partnerships or other parties covered in the register
maintained under Section 189 of the Act. Therefore,
the provisions of Clause 3(iii), (iii)(a), (iii)(b) and
(iii)(c) of the said Order are not applicable to the
Company.
iv. In our opinion, and according to the information and
explanations given to us, the Company has
complied with the provisions of Section 185 and 186
of the Companies Act, 2013 in respect of the loans
and investments made. The Company has not
provided any guarantees or security to the parties
covered under Sections 185 and 186.
v. The Company has not accepted any deposits from
the public within the meaning of Sections 73, 74, 75
and 76 of the Act and the Rules framed there under
to the extent notified.
vi. Pursuant to the rules made by the Central
Government of India, the Company is required to
maintain cost records as specified under Section
148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the
opinion that, prima facie, the prescribed accounts
and records have been made and maintained. We
have not, however, made a detailed examination of
the records with a view to determine whether they
are accurate or complete.
vii. (a) According to the information and explanations given
to us and the records of the Company examined by
us, in our opinion, the Company is generally regular
in depositing undisputed statutory dues in respect of
provident fund, employees’ state insurance, income
tax, service tax, though there has been a slight delay
in a few cases, and is regular in depositing
undisputed statutory dues, including sales tax, duty
of customs, duty of excise, value added tax, cess
and other material statutory dues, as applicable,
with the appropriate authorities.
(b) According to the information and explanations given
to us and the records of the Company examined by
us, there are no dues of duty of custom, entry tax and
cess which have not been deposited on account of
any dispute. The particulars of dues of income tax,
sales tax, duty of excise, service tax and value
added tax as at March 31, 2017 which have not been
deposited on account of a dispute, are as follows:
29
Annual Report 2016 - 2017

ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT

Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the members of Otis Elevator
Company (India) Limited on the standalone Ind AS nancial statements as of and for the year ended March 31, 2017

Sr. Name of the Statute Nature of the Dues Amount under Forum where
No. dispute not yet dispute is pending
deposited
(Rs. in lakhs)

1. The Central Excise Act, 1944 Excise duty liability for the 2,079 The Supreme Court
period July 2000 to March of India
2004 and April 2004 to March
2005

Excise duty liability for the 1,036 The High Court of

period March 1993 to October Mumbai
1995

Excise duty liability for the 1,356

period March 1987 to Customs, Excise and
February 1995, April 1996 to Service Tax Appellate
December 2003 and Tribunal, Mumbai
November 2008 to November
2009
20
Excise duty liability for the First Appellate
period November 1994 to Authorities
August 1995

Sub total 4,491

2. Sales Tax / Value Added Tax
As per the statutes applicable
in the following states –
Haryana, West Bengal, Delhi,
Maharashtra, Goa, Rajasthan,
Punjab, Jharkhand, Uttar
Pradesh , Uttaranchal, Kerala,
Tamil Nadu
Sales Tax in dispute for the 825 Sales Tax Appellate
financial years 2002-2003 to Tribunal of various states
2004-2005
Sales Tax in dispute for the 30,818 Assessing Authorities and
financial years 1995-1996, First Appellate Authorities
1998-1999 to 2013-2014 and of various states
2015-2016

Sub total 31,643

3. Income -tax Act, 1961 Demand in respect of * Commissioner of Income

Assessment Year 2011-2012 tax Appeals

Sub total *

4. Service Tax Service tax in dispute for the 23,877 Customs, Excise and
The Finance Act, 1994 years 2007-08 to 2014-2015 Service Tax Appellate
Tribunal, Mumbai

Service tax in dispute for the 278 First Appellate Authorities

year 2007-2008 to 2009-2010

Sub total 24,155

Grand Total 60,289

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

30
ANNEXURE B TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the members of Otis Elevator
Company (India) Limited on the standalone Ind AS nancial statements as of and for the year ended March 31, 2017
viii. As the Company neither has any loans or
borrowings from any financial institution or bank or
Government, nor has it issued any debentures as at
the balance sheet date, the provisions of Clause
3(viii) of the Order are not applicable to the
Company.
ix. The Company has not raised any moneys by way of
initial public offer, further public offer (including debt
instruments) and term loans. Accordingly, the
provisions of Clause 3(ix) of the Order are not
applicable to the Company.
x. During the course of our examination of the books
and records of the Company, carried out in
accordance with the generally accepted auditing
practices in India, and according to the information
and explanations given to us, we have neither come
across any instance of material fraud by the
Company or on the Company by its officers or
employees, noticed or reported during the year, nor
have we been informed of any such case by the
Management.
xi. The Company has paid/ provided for managerial
remuneration in accordance with the requisite
approvals mandated by the provisions of Section
197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the
Nidhi Rules, 2014 are not applicable to it, the
provisions of Clause 3(xii) of the Order are not
applicable to the Company.
xiii. The Company has entered into transactions with
related parties in compliance with the provisions of
Sections 177 and 188 of the Act. The details of such
related party transactions have been disclosed in
the financial statements as required under
Accounting Standard (AS) 18, Related Party
Disclosures specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts)
Rules, 2014.
xiv. The Company has not made any preferential
allotment or private placement of shares or fully or
partly convertible debentures during the year under
review. Accordingly, the provisions of Clause 3(xiv)
of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash
transactions within the meaning of Section 192 of
the Act with its directors or persons connected with
him. Accordingly, the provisions of Clause 3(xv) of
the Order are not applicable to the Company.
xvi. The Company is not required to be registered under
Section 45-IA of the Reserve Bank of India Act,
1934. Accordingly, the provisions of Clause 3(xvi) of
the Order are not applicable to the Company.
For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/S-200012
Chartered Accountants
Asha Ramanathan
Partner
Membership Number: 202660
Place: Mumbai
Date: August 17, 2017
31
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Standalone Balance Sheet as at March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Notes As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
ASSETS
Non-current assets
Property, plant and equipment 4 6,331 7,152 7,744
Capital work-in-progress 4 26 - 285
Other intangible assets 4 - - -
Investments 5 144 144 558
Financial assets
(i) Loans 6(a) 60,459 14,159 10,246
(ii) Trade receivables 13(a) 47 20 20
(iii) Other financial assets 7 887 743 1,101
Deferred tax assets (net) 8 12,566 11,504 11,027
Non-current tax assets (net) 9(a) 5,854 3,421 2,366
Other non-current assets 10 6,197 6,800 5,434
Total non current assets 92,511 43,943 38,781
Current assets
Inventories 11 10,362 8,218 7,842
Financial assets
(i) Loans 6(b) 12,639 135 261
(ii) Contract work-in-progress 12 924 1,271 777
(iii) Trade receivables 13(b) 32,604 32,252 27,983
(iv) Cash and cash equivalents 14 51,751 107,025 103,714
(v) Bank balances other than (iv) above 15 64 46 20
(vi) Other financial assets 16 3,728 2,673 2,428
Current tax assets (Net) 9(b) 766 - -
Other current assets 17 1,478 1,513 1,426
Total current assets 114,316 153,133 144,451
TOTAL ASSETS 206,827 197,076 183,232

EQUITY AND LIABILITIES

EQUITY
Equity share capital 18 1,181 1,181 1,181
Other equity 19 93,771 92,797 88,364
Total equity 94,952 93,978 89,545

LIABILITIES
Non-current liabilities
Provisions 20 15,614 18,590 19,080
Employee benefit obligations 21(a) - 50 919
Other non-current liabilities 22 1,027 970 929
Total non-current liabilities 16,641 19,610 20,928

Current liabilities
Financial liabilities
(i) Trade payables 23 20,488 16,832 13,398
(ii) Other financial liabilities 24 487 225 649
Provisions 25 16,984 12,614 10,024
Employee benefit obligations 21(b) 3,064 3,185 2,543
Liabilities for current tax (net) 26 - - 3,251
Other current liabilities 27 54,211 50,632 42,894
Total current liabilities 95,234 83,488 72,759

Total liabilities 111,875 103,098 93,687

TOTAL EQUITY AND LIABILITIES 206,827 197,076 183,232

The above Standalone Balance sheet should be read in conjunction with the accompanying notes.
This is the Standalone Balance Sheet referred to in our report of even date.
For and on behalf of the Board of Directors
For Price Waterhouse & Co Bangalore LLP
Firm Registration No. 007567S/S-200012 Sebi Joseph Suma P N
Chartered Accountants Managing Director Director
DIN 05221403 DIN 05350680
Asha Ramanathan
Partner
Mitesh Mittal Sanu Kapoor
Membership No. 202660
Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: August 17, 2017 Date: August 10, 2017

32
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Standalone Statement of Prot and Loss for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Notes Year Ended Year Ended

March 31, 2017 March 31, 2016

Revenue
Revenue from operations 28 127,035 106,855
Other income 29 11,188 10,082
T otal income 138,223 116,937

Expenses
Cost of materials consumed 30 57,667 42,785
Changes in inventories of work-in-progress 31 (126) 44
Excise duty 2,841 2,272
Employee benefits expenses 32 27,178 25,245
Interest expense 33 47 73
Depreciation and amortization expenses 34 1,278 1,373
Other expenses 35 27,588 26,016
T otal expenses 116,473 97,808
Prot before exceptional items and tax 21,750 19,129
Exceptional items 41 (144) (683)
Prot before tax 21,606 18,446
Income tax expense
1. Current tax 43 8,800 7,420
2. Deferred tax (1,128) (393)
3. Adjustment of tax for earlier years (29) (777)
7,643 6,250

Prot for the year 13,963 12,196

Other comprehensive income

Items that will not be reclassified to Statement of
Profit and Loss:
Actuarial gains / (loss) aring from remeasurements 190 (245)
of post-employment benefit obligations
Deferred tax income / (expense) related to these items (66) 85
Other comprehensive income for the year, net of tax 124 (160)
T otal comprehensive income for the year 14,087 12,036

Earnings per Equity Share - (Basic and Diluted) [Refer

Notes 3(n) and 36]
[Nominal value of share Rs. 10 each] (Previous Year - 118.24 103.28
Rs. 10 each)

The above Standalone Statement of Profit and Loss should be read in conjunction with the accompanying notes.
This is the Standalone Statement of Profit and Loss referred to in our report of even date.

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants Sebi Joseph Suma P N
Managing Director Director
Asha Ramanathan DIN 05221403 DIN 05350680
Partner
Membership No. 202660 Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Date: August 17, 2017 Place: Mumbai
Date: August 10, 2017

33
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Standalone Statement of cash ows for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Cash ow from operating activities:

Profit Before Tax 21,606 18,446

Adjustments for :
Depreciation and Amortisation expense 1,278 1,373
Provision for trade receivables and other financial assets 427 2,035
Provision for non-financial assets 113 22
Unrealised Loss on fluctuation in Foreign exchange (net) 90 102
Bad trade receivables and other financial assets written off 448 277
Interest expense on delayed payments of taxes - 52
Unwinding of Interest on Product Upgradation Expense Provision 47 21
Interest on :
- Deposits with Bank (6,834) (7,975)
- Income Tax Refund (189) (283)
- Loans to related parties (2,755) (1,379)
- Others (14) (10)
Profit on sale / disposal of property, plant and equipment (Net) (50) (33)
Provision for Product Upgradation 444 2,112
Provision for contingency / write back of provision for contingency (Net) (898) 147
Unwinding of Interest on deposits/ retention money/ employee loans (103) (62)
Share based payments to Employees 389 214
Exceptional items (Refer Note 41) 144 683
Operating Prot before working capital changes 14,143 15,742

Change in operating assets and liabilities

(Decrease) in Trade receiveables - current (1,226) (6,581)
(Decrease) in Trade receiveables - non current (27) -
(Decrease) in Inventories (2,144) (376)
Increase in Trade Payables 3,566 3,331
Increase in other current financial assets 329 244
Increase / (Decrease) in other non-current assets 521 (1,588)
Increase / (Decrease) in other current assets 35 (87)
(Decrease) in long term provisions (3,024) (511)
Increase in short term provisions 4,824 330
(Decrease) in employee benefit obligations (non-current) (50) (869)
Increase in employee benefit obligations (current) 69 398
Increase / (Decrease) in other current financial liabilities 136 (331)
Increase in non-current liabilities 57 41
(Decrease) / Increase in other non current financial assets (144) 99
Increase in other current liabilities 3,578 7,739
Increase / (Decrease) in Contract work-in-progress 347 (494)
(Increase) in Other bank balances (17) (26)
Operating Prot after Working Capital changes 20,973 17,061

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

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

34
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Standalone Statement of cash ows for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Cash flow from investing activities

Purchase of Fixed Assets (416) (463)
Proceeds from Sale of Fixed Assets 95 61
Purchase of Investments (150) -
Loans Given (Net of repayment) (58,805) (3,787)
Interest received 8,322 8,926

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

Cash flow from financing activities

Dividend paid (11,201) (6,474)
Dividend Distribution Tax paid (2,284) (1,322)
Net cash utilised for Financing Activities ( C ) (13,485) (7,796)

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

Cash and Cash Equivalents at the Beginning of the Year 106,998 103,714
Cash and Cash Equivalents at the End of the Year 51,751 106,998

Cash and Cash Equivalents comprise :

Bank Balances:
- In Current accounts 2,762 571
- In Demand Deposits 48,902 106,048
Cash on hand 1 2
Cheques on hand 86 404
Temporary overdrat with Banks - (27)
51,751 106,998

Notes:
1.The above Standalone Statement of Cash Flows has been prepared under "Indirect Method" set out in Accounting Standard (Ind AS) 7
on the Statement of Cash Flow as notified under Companies (Accounts) Rules, 2015.

2.The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this note. (Refer
Note 51).

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

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

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants Sebi Joseph Suma P N
Managing Director Director
Asha Ramanathan DIN 05221403 DIN 05350680
Partner
Membership No. 202660 Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Date: August 17, 2017 Place: Mumbai
Date: August 10, 2017

35
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

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

A. Equity Share Capital (Refer Note 18)

Particulars Amount
Balance as at April 1, 2015 1,181
Changes in equity share capital -
Balance as at March 31, 2016 1,181
Changes in equity share capital -
Balance as at March 31, 2017 1,181

B. Other equity (Refer Note 19)

Reserves and Surplus Other Equity

Particulars Capital Retained Equity contribution Total
redemption General from Ultimate Parent -
reserve earnings
reserve Share based payments
Balance as at April 1, 2015 73 1,759 86,410 122 88,364
Profit for the year - - 12,196 - 12,196
Other comprehensive income - - (160) - (160)
Total comprehensive income for the year - - 12,036 - 12,036
Dividends paid - - (6,495) - (6,495)
Dividend distribution tax - - (1,322) - (1,322)
Additions towards share based payments - - - 214 214
Balance as at March 31, 2016 73 1,759 90,629 336 92,797

Reserves and Surplus Other Equity

Particulars Capital Retained Equity contribution Total
redemption General from Ultimate Parent -
reserve earnings
reserve Share based payments
Balance as at April 1, 2016 73 1,759 90,629 336 92,797
Profit for the year - - 13,963 - 13,963
Other comprehensive income - - 124 - 124
Total comprehensive income for the year - - 14,087 - 14,087
Dividends paid - - (11,218) - (11,218)
Dividend distribution tax - - (2,284) - (2,284)
Additions towards share based payments - - - 389 389
Balance as at March 31, 2017 73 1,759 91,214 725 93,771

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

As per our report of even date

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants Sebi Joseph Suma P N
Managing Director Director
Asha Ramanathan DIN 05221403 DIN 05350680
Partner
Membership No. 202660 Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Date: August 17, 2017 Place: Mumbai
Date: August 10, 2017

36
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

1 Background of the Company

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

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

(a) Statement of compliance

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

(b) Historical cost convention

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

Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected.

This note provides an overview of the areas that involved higher degree of judgment or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Detailed information about each of these estimates and judgments is included in relevant notes together with information about
the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

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

(d) Current vs non-current classication

Operating cycle
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of business and the time between the supply
of products/rendering of services and their realisation in cash and cash equivalents, the Company has ascertained its
operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities.

3 Signicant accounting policies

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

37
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

(a) Foreign currency translations

(i) Functional and presentation currency

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

(ii) Transactions and balances

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

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

(b) Financial instruments

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

(i) Financial Assets

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

Recognition, measurement and classication

A financial asset is recognised in the balance sheet only when the Company becomes party to the contractual provisions to the
instrument. All financial assets are measured initially at its fair value plus, in the case of a financial asset not at fair value through
statement of profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset.
Transaction costs of financial assets carried at fair value through statement of profit or loss are expensed to profit or loss.

The Company classifies its financial assets into a) financial assets measured at amortised cost, and b) financial assets
measured at fair value (either through other comprehensive income or through profit or loss). Management determines the
classification of its financial assets at the time of initial recognition or, where applicable, at the time of reclassification. The
classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash
flows.

(1) Financial assets measured at amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost. A gain or loss on a financial asset that is subsequently measured at amortised cost and
is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in finance income using the effective interest rate method.

A financial asset is classified at amortised costs if it is held within a business model whose objective is to a) hold financial asset in
order to collect contractual cash flows and b) the contractual terms of the financial asset give rise on specific dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using effective interest rate
method (EIR). Amortised cost is arrived at after taking into consideration any discount or fees or costs that are an integral part of
the EIR. The amortisation of such interests forms part of finance income in the statement of profit and loss. Any impairment loss
arising from these assets are recognised in the Statement of Profit and Loss.

38
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

(2) Financial assets measured at fair value through other comprehensive income (FVTOCI)

A financial asset is classified at fair value through other comprehensive income if it is held within a business model whose
objective is to a) hold financial asset in order to collect contractual cash flows and for selling the financial assets and b) the
contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of
impairment of gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to
profit or loss. Interest income from these financial assets is included in other income using the effective interest rate method.

(3) Financial assets measured at fair value through prot and loss (FVTPL)

Any asset which do not meet the criteria for classification as at amortised cost or as FVTOCI, is classified as FVTPL. Financial
assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in the Statement of
Profit and Loss.

(ii) Financial Liabilities

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

Recognition, measurement and classication

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

(iii) De-recognition

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

(iv) Impairment of nancial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on the financial assets.

The Company follows ‘simplified approach’ permitted by Ind AS 109, Financial instruments, for recognition of impairment loss
allowance on Trade Receivables which requires expected lifetime losses to be recognised from initial recognition of the
receivables.

At the time of recognition of impairment loss on other financial assets, the Company determines that whether there has been a
significant increase in the credit risk since its initial recognition. If credit risk has not increased significantly, 12-month ECL is
used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent
period, credit quality of the financial instrument improves such that there is no longer a significant increase in credit risk since
initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12
months after the reporting date.

ECL impairment loss allowance/ reversal is recognized during the period as expense/ income in the Statement of Profit and
Loss. In case of financial assets measured as at amortised cost, ECL is presented as an allowance. Until the asset meets write-
off criteria, the Company does not reduce impairment allowance from the gross carrying amount but is disclosed as net carrying
amount.

39
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

(v) Derivatives

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

(vi) Offsetting nancial instruments

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

Inventories

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

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

(d) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amount disclosed as revenue are inclusive of
excise duty and net of taxes collected on behalf of the third parties. Revenue is recognised to the extent it is probable that the
economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from construction and repair contracts is recognised on Percentage of Completion Method with reference to the stage
of completion of the contract activity at the end of the reporting period. The stage of completion of a contract is determined as
the proportion that contract costs incurred for work performed up to the year end bear to the estimated total contract costs.
However, provisions are made for the entire loss on a contract irrespective of the amount of work done.

When two or more revenue generating activities or deliverables are provided under a single arrangement, each deliverable is
considered to be a separate unit of account and accounted for separately. The allocation of consideration from a revenue
arrangement to its separate units of account is based on the relative fair value of each unit. If the fair value of the delivered item is
not reliably measurable, then revenue is allocated based on the difference between the total arrangement consideration and
the fair value of the undelivered item. Under contracts for supplies and installation, the Company provides free service /
maintenance to its customers. The consideration received is allocated between the equipment sale and service relative to the
fair value of free service offered. The fair value of the free service is deferred and recognised as revenue on pro-rata basis over
the contract period.

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

(e) Other Income

Interest income from financial asset is recognised using the effective interest rate method. The effective interest rate is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying
amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial asset (for example, prepayment, extension, call and similar options) but
does not consider the expected credit losses.

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic
benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

Recoveries from Group Companies include recoveries towards common facilities/ resources and other support provided to
such parties which is recognised as per terms of agreement.

40
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

(f) Property, plant and equipment

Recognition and measurement

Freehold land is stated at cost. All other items of property, plant and equipment are measured at historical cost less
depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs
are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognised when replaced. The costs of the
day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation on tangible assets is provided on written down value method at the rates and in the manner prescribed under
Schedule II of the Companies Act, 2013. Depreciation is provided on pro-rata basis with reference to the month of
addition/installation/ disposal of assets, except in case of assets costing Rs. 5,000 or less, which are depreciated fully in the
year of acquisition. The Company has estimated the useful lives of assets equivalent to the useful lives prescribed in Schedule II
to the Companies Act, 2013 as below:
Particulars Useful lives
Buildings 30 years
Plant and equipments 15 years
Furniture and fixtures 10 years
Electrical installations 10 years
Computers 3 years
Vehicles 8 - 10 years
Office equipments 5 years

The residual values are not more than 5% of the original cost of the asset. Depreciation methods, residual values and useful
lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s carrying amount is higher than its estimated recoverable amount.

Gains or losses arising from the retirement or disposal of a tangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and
Loss.

Leaseholds improvements are amortised over the lease period on Straight line basis.

Transition to Ind AS

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

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

Softwares purchased are amortised over a period of 5 years on straight line basis.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and
Loss.

Research and Development:

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are
also charged to the Statement of Profit and Loss unless a product’s technical feasibility and other criteria set out in Ind AS 38 –
‘Intangible assets’ have been established, in which case such expenditure is capitalised.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of intangible assets recognised as at
April 1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.
41
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

(h) Impairment of non-nancial assets

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

(i) Leases

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

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

(j) Employee benets

I) Short term obligation

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected
to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee and the obligation can be estimated reliably. Termination benefits are recognised as an expense as and when
incurred.

ii) Other long-term employee benet obligations

Compensated Absences
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore measured as the present value of expected future
payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms
approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in
actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

iii) Post employment obligations

a) Dened contribution plans

A defined contribution plan is a post-employment plan under which an entity pays fixed contributions and will have no legal or
constructive obligation to pay further amounts.The Company contributes to Superannuation Fund, Employee’s State
Insurance Fund and Employees Deposit Linked Insurance scheme, and has no further obligation beyond making its
contribution. The Company’s contributions to the above funds are charged to the Statement of Profit and Loss.

b) Dened benet plans

Provident Fund
Contributions to Provident Fund and Employee’s Pension Scheme 1995 are made to Trust administered by the Company. The
Company's liability is actuarially determined (using the Project Unit Credit method) at the end of the year and any shortfall in the
fund size maintained by the Trust set up by the Company, is additionally provided for.

Gratuity
The Company provide for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment of vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employees' salary and the tenure of
employment. The Company’s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuary using the projected unit credit method.
42
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

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

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

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

iv) Termination Benets

Termination benefits in the nature of voluntary separation plan are recognised in the Statement of Profit and Loss as and when
incurred.

v) Share based payments

Share based compensation benefits are provided to employees by the Ultimate Parent Company without any cross charge.

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

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

(k) Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates items
recognised directly in equity or in other comprehensive income.

Current tax

The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses, if any.

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

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the standalone financial statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected
to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognised only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.

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

43
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2017

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

(l) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or contructive obligation as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Provisions are measured at the present value, wherever company can estimate the time of settlement, of management’s best
estimate of the expenditure required to settle the present obligation at the end of the reporting period. The increase in the
provisions due to passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurance or non-occurance of one or more uncertain future events not wholly with in the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount can not be made.

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

(m) Segment reporting

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

(n) Earnings per share

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

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

(o) Cash and cash equivalents

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

(p) Investments

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

(q) Dividends

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

(r) Rounding of amounts

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

44
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

4 Property, Plant and Equipment

[Refer Notes 3(f) and (h)]

Gross Block Depreciation Net Block

Description As at As at As at For the As at As at
March 31, 2016 Additions Deductions March 31, 2017 March 31, 2016 year Deductions March 31, 2017 March 31, 2017
Freehold land 250 - - 250 - - - - 250
Buildings 4,394 76 25 4,445 429 404 5 828 3,617
Leasehold improvements 449 13 1 461 132 228 1 359 102
Plant and equipment 2,670 313 - 2,983 548 467 - 1,015 1,968
Furniture and fixtures 141 31 - 172 48 37 - 85 87
Electrical installations 297 - - 297 76 56 - 132 165
Computers 88 8 17 79 34 16 3 47 32
Vehicles 49 5 16 38 13 9 6 16 22
Office equipments 180 56 1 235 86 61 * 147 88
Total 8,518 502 60 8,960 1,366 1,278 15 2,629 6,331
Capital work-in-progress - 528 502 26 - - - - 26

Gross Block Depreciation Net Block

Description As at As at As at For the As at As at
April 1, 2015 Additions Deductions March 31, 2016 April 1, 2015 year Deductions March 31, 2016 March 31, 2016
Freehold land 250 - - 250 - - - - 250
Buildings 4,252 149 7 4,394 - 429 * 429 3,965
Leasehold improvements 219 230 - 449 - 132 - 132 317
Plant and equipment 2,368 313 11 2,670 - 550 2 548 2,122
Furniture and fixtures 106 36 1 141 - 48 * 48 93
Electrical installations 297 * - 297 - 76 - 76 221
Computers 60 32 4 88 - 34 * 34 54
Vehicles 44 13 8 49 - 16 3 13 36
Office equipments 148 36 4 180 - 88 2 86 94
Total 7,744 809 35 8,518 - 1,373 7 1,366 7,152
Capital work-in-progress 285 524 809 - - - - - -

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

Gross Block Amortisation Net Block

Description As at As at As at For the As at As at
April 1, 2016 Additions Deductions March 31, 2017 April 1, 2016 year Deductions March 31, 2017 March 31, 2016
Software - - -
- - - - - - - - -
Gross Block Amortisation Net Block
Description As at As at As at For the As at
April 1, 2015 Additions Deductions March 31, 2016 April 1, 2015 year Deductions March 31, 2016
Software - -
- - - - - - - -
Note:
The Company has availed the deemed cost exemption in relation to the property plant and equipment and intangible assets on the date of transition and hence
the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the
accumulated depreciation / amortisation on April 1, 2015 under the previous GAAP.

Buildings Leasehold Plant and Furniture and Electrical Ofce

DESCRIPTION Freehold land improvements equipment Computers Vehicles Software Total
xtures installations equipments
Gross Block 250 5,670 1,049 5,893 301 566 1,035 225 389 849 16,227
Accumulated
Depreciation/ - 1,418 830 3,525 195 269 975 181 241 849 8,483
amortisation
Total 250 4,252 219 2,368 106 297 60 44 148 - 7,744
* Amounts are below rounding off norms adopted by the Company.

45
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

5 Non-current Investments
[Refer Notes 3 (h), 3(p) and 41]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unquoted:
Subsidiary Company:
268,700 Equity Shares (March 31, 2016: 215,000, April 1, 2015: 564 414 414
215,000) of Rs. 100 each fully paid-up in 'Supriya Elevator
Company (India) Limited
Less: Provision for impairment (564) (414) -

- - 414
Associate Company:
288,550 Equity Shares (March 31, 2016: 288,550, April 1, 2015: 144 144 144
288,550) of Rs. 10 each fully paid up in Trio Elevators Co (India)
Limited
TOTAL 144 144 558

Aggregate book value of gross unquoted investments 708 558 558

Aggregate book value of net unquoted investments 144 144 558
Aggregate amount of impairment in value of investments 564 414 -
Note:
During the current year, pursuant to the Board of Directors resolution dated February 14, 2017 and Share Purchase Agreement dated February 23, 2017, the
Company has acquired 53,700 equity shares of Rs. 100 each on March 8, 2017, representing remaining 20% shareholding in its subsidiary company, Supriya
Elevator Company (india) Limited for a consideration of Rs. 150 lakhs. Consequent to share purchased, Supriya Elevator Company (India) Limited has become
wholly owned subsidiary of the Company.

6(a) Loans - Non-Current

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good:
Loans to related parties
UTC Fire and Security India Limited 15,430 9,980 7,680
Chubb Alba Control Systems Limited 42,053 965 850
Carrier Race Technologies Private Limited 2,930 2,930 1,400
United Technologies Corporation India Private Limited - 235 282

Loans to employees 46 49 34
60,459 14,159 10,246

6(b) Loans - Current

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good:
Loans to related parties
Chubb Alba Control Systems Limited 12,524 - -

Loans to employees 115 135 261

Unsecured, considered doubtful:

Loans to employees - 8 19
Less: Allowance for doubtful loans - (8) (19)
- - -

12,639 135 261

46
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Details of Loans to Related Parties

As at Rate of interest Repayable on
Particulars March 31, 2017 Purpose
% or before
UTC Fire and Security India Limited # 15,430 Project financing and 12.50 June 15, 2017
working capital
15,430
Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 8, 2017
53,612 Project financing and 11.25 Aug 22, 2017
working capital
54,577
Carrier Race Technologies Private Limited # 2,930 Working capital 12.50 May 24, 2017
2,930

Details of Loans to Related Parties

As at Rate of interest Repayable on

Particulars March 31, 2016 Purpose
% or before
UTC Fire and Security India Limited # 150 Project financing and 12.50 April 04, 2016
working capital
100 Project financing and 12.50 May 25, 2016
working capital
300 Project financing and 12.50 June 14, 2016
working capital
9,430 Project financing and 12.50 June 20, 2016
working capital
9,980
Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 13, 2016
965
Carrier Race Technologies Private Limited # 50 Working capital 12.50 April 25, 2016
2,880 Working capital 12.50 May 29, 2016
2,930
United Technologies Corporation India Private Limited 235 Fund the 11.00 September 30,
construction of an 2020
approved training
center project.
235

47
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Details of Loans to Related Parties

As at Rate of interest Repayable on

Particulars April 1, 2015 Purpose
% or before
UTC Fire and Security India Limited # 5,980 Project financing and 10.90 June 26, 2015
working capital
1,200 Project financing and 10.50 August 13, 2015
working capital
300 Project financing and 10.15 August 31, 2015
working capital
200 Project financing and 10.15 September 12,
working capital 2015
7,680
Chubb Alba Control Systems Limited # 100 Working capital 10.85 May 19, 2015
250 Working capital 10.00 July 13, 2015
250 Working capital 10.15 September 2,
2015
250 Working capital 10.15 September 23,
2015
850
Carrier Race Technologies Private Limited # 1,200 Working capital 10.25 June 04, 2015
200 Working capital 10.25 August 18, 2015
1,400
United Technologies Corporation India Private Limited 282 Fund the 11.00 September 30,
construction of an 2020
approved training
center project.
282

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

7 Other nancial assets (Non current)

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good
Receivable from related parties:
Trio Elevator Company (India) Limited 14 14 -
Supriya Elevator Company (India) Limited - - 257
14 14 257
Security deposits 873 729 844

Unsecured, considered doubtful

Receivable from related parties:
Supriya Elevator Company (India) Limited 253 259 -
Less: Allowance for doubtful receivables (Refer Note 42) (253) (259) -
- - -

Security deposits 110 194 53

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

- - -

TOTAL 887 743 1,101

48
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

8 Deferred Tax assets (Net)

[Refer Notes 3 (k) and 43D]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Deferred Tax Assets
Provision for doubtful debts/advances 2,510 2,816 2,206
Provision for Compensated Absences and Gratuity 1,060 831 1,177
Voluntary Separation Plan 168 262 370
Provision for Product Upgradation 707 810 551
Disallowances under Section 40(a) of the Income Tax Act, 1961 135 135 133
Depreciation 149 64 -
Provision for Contingency 5,108 6,048 6,429
Provision for foreseeable losses on contracts 2,667 - -
Deferred revenue 62 538 207

12,566 11,504 11,073

Deferred Tax Liabilities
Depreciation - - 46
Deferred Tax Asset (Net) 12,566 11,504 11,027

9(a) Non-current tax assets (Net)

[Refer Note 3 (k)]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Advance income tax 56,614 49,966 52,571

Provision for tax (50,760) (46,545) (50,205)
Advance income tax (Net of provision for income tax) 5,854 3,421 2,366

Opening balances 3,421 2,366 -

Add: Taxes paid (net of refund) 11,970 9,701 -
Less: Current tax provision for the year 8,771 6,695 -
Less: Tax provision for earlier years - - -
Less: reclassified from long term provision - 1,951 -
Less: reclassified to current tax assets 766 - -
Closing balance 5,854 3,421 2,366

9(b) Current tax assets (Net)

[Refer Note 3 (k)]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Advance income tax 5,170 - -

Provision for tax (4,404) - -
Advance income tax (Net of provision for income tax) 766 - -

Opening balances - - -
Add: reclassified to current tax assets 766 - -

Closing balance 766 - -

49
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

10 Other non-current assets

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good
Capital Advance 26 1 204
Prepaid Expenses 97 127 102
Balances with Government Authorities 6,059 6,654 5,110
Advance to employees 15 18 18

Unsecured, considered doubtrful

Balances with Government Authorities 1,101 988 961
Less: Provision for doubtful balances (1,101) (988) (961)

- - -
6,197 6,800 5,434

11 Inventories
[Refer Note 3(c)]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Raw materials:
Components [including Components In-transit 10,089 8,071 7,651
Rs. 4,255 lakhs (March 31, 2016: Rs. 2,200 lakhs,
April 1, 2015: Rs. 1,341 lakhs)]
Work-in-progress for components for Elevators Constructions 273 147 191

10,362 8,218 7,842

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

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

12 Contract Work-In-Progress
[Refer Note 28]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Progress Work 16,160 12,221 12,860
Less: Aggregate amount of Progress Billings 15,236 10,950 12,083
924 1,271 777

13(a) Trade receivables - non current

(Unsecured)
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Considered Good 47 20 20

Total Trade receivables 47 20 20

50
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

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

(Unsecured)
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Considered Good * 32,604 32,252 27,983
Considered Doubtful 5,259 6,227 5,069
37,863 38,479 33,052
Less: Allowance for doubtful debts (5,259) (6,227) (5,069)
Total Trade receivables 32,604 32,252 27,983

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

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

14 Cash and cash equivalents

[Refer Note 3(o)]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Balances with banks
-In Current accounts 2,762 571 272
-Deposits with original maturity of less than three months 48,902 106,048 102,824
Cheques on hand 86 404 615
Cash on hand 1 2 3
51,751 107,025 103,714

DISCLOSURE ON SPECIFIED BANK NOTES

During the year, the Company held specified bank notes or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated
March 31, 2017. The details of Specified Bank Notes held and transacted during the period from November 8, 2016 to December 30, 2016,
along with that of other notes given below as per the notification.
In Rs. Lakhs
Specied Bank
Particular Notes*
Other notes Total
Closing cash on hand as on November 8, 2016 2 1 3
Add : Receipts for permitted transactions - 1 1
Less : Paid for permitted transactions - 1 1
Less : Deposited in bank accounts 2 - 2
Closing cash on hand as on December 30, 2016 - 1 1

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

15 Bank balances other than above

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unpaid dividend accounts 48 31 11
Deposit with bank [towards security deposit 16 15 9
against sales tax and other matters]

64 46 20

51
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

16 Other nancial assets

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Receivables from related parties (Refer Note 44)
Interest accrued on loans 2,468 946 602
Other receivables 588 410 712

Other receivables - Unsecured considered good

Deposits - Others 426 804 574
Interest accrued on fixed deposits 134 366 260
Interest accrued on Employee loans - 8 21
Other receivables 108 135 259
Derivative not designated as hedges
- Foreign exchange forward contracts 4 4 -

Unsecured considered doubtful

Security deposits - Others 501 420 354
Less: Allowance for doubtful deposits (501) (420) (354)
- - -
Interest accrued on loan to subsidary 10 10 -
Less: Allowance for doubtful receivables (10) (10) -
- - -
3,728 2,673 2,428

17 Other current assets

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Prepaid Expenses 314 268 336

Advance to suppliers 650 598 851

Less: Allowance for doubtful advances (17) (29) (33)

633 569 818

Balances with Government Authorities 531 676 272
1,478 1,513 1,426

18 Equity share capital

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Authorised
15,000,000 equity shares of Rs. 10 each 1,500 1,500 1,500

Issued, subscribed and paid-up

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

TOTAL 1,181 1,181 1,181

52
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

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

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

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

(b) The Company has one class of equity shares having a par value of Rs. 10 per equity share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company
after distribution of all preferential amounts, in proportion to their shareholding.

Shares held by the holding company of the Company

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

11,599,819 equity shares are held by Holding Company 1,160 1,160 1,160
United Technologies South Asia
Pacific Pte. Ltd.
1,160 1,160 1,160

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

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

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

Name of the Shareholders Number of Number of Number of
% holding % holding % holding
shares shares shares
United Technologies South 11,599,819 11,599,819 11,599,819
98.24% 98.24% 98.24%
Asia Pacific Pte. Ltd.

19 Other equity
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Capital redemption reserve 73 73 73
General reserve 1,759 1,759 1,759
Retained earnings 91,214 90,629 86,410
ESOP reserve - contribution from parent 723 336 122
93,771 92,797 88,364

a. Capital redemption reserve

Balance as at the beginning of the year 73 73
Closing balance 73 73

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

53
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

As at As at
March 31, 2017 March 31, 2016
c. Retained earnings
Balance as at the beginning of the year 90,629 86,410
Add: Profit for the year 13,963 12,196
Items of other comprehensive income recognised
directly in retained earnings
- Re-measurements of post employment 124 (160)
benefit obligation (net of tax)

Less: Appropriations
- Dividend 11,218 6,495
- Dividend distribution tax 2,284 1,322
91,214 90,629

d. Employees Share Option Plan (ESOP) reserve

[Refer Note 3(j)]
Balance as at the beginning of the year 336 122
Add: Additions during the year 389 214
Closing balance 725 336

Total - Other equity 93,771 92,797

Nature and purpose of reserves

a. Employees Share Option Plan (ESOP) reserve

The ESOP reserve is used to recognise the grant date fair value of shared based options issued to employees by the ultimate parent company.
Refer Note 50 for details.

b. Capital redemption reseve

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

20 Provisions - Non-current
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Other provisions
Provision for Product Upgradation [Refer Note 3(l) and 25] 854 1,114 167
Provision for Contingency [Refer Note 3 (l)] 14,760 17,476 18,913
15,614 18,590 19,080

Provision for contingency

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

Provision for Product Upgradation:

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

54
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(I) Movement in provisions

As at As at
March 31, 2017 March 31, 2016
Particulars Provision for Provision for
Provision for Provision for
product product
contingency contingency
upgradation upgradation
Opening balance 2,339 17,476 1,622 18,913
Provision made during the year 444 1,919 2,112 3,420
Provision used during the year (789) (1,818) (1,416) (1,584)
Unwinding of discount 47 - 21 -
Provision reversals/written back during the year - (2,817) - (3,273)
Closing balance 2,041 14,760 2,339 17,476

21 Employee benet obligations

[Refer Notes 3(j) and 32]
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
(a) Non-current provisions for employee benets :
Provision for Gratuity - 50 919
- 50 919

(b) Current provisions for employee benets :

Provision for Gratuity 389 785 711
Provision for Compensated Absences 2,675 2,400 1,832
3,064 3,185 2,543

22 Other non-current liabilities

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Advance Service and Maintainance Billing 1,027 970 929
1,027 970 929
23 Trade payables
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Trade payables to related parties (Refer Note 44) 6,422 4,243 2,967

Trade Payables - Others

- Micro and Small Enterprises (Refer Note 45) 8 6 2
- Others 14,058 12,583 10,429
20,488 16,832 13,398

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

24 Other nancial liabilities

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Current
Capital creditors 200 64 205
Unpaid dividends 48 31 11
Temporary overdraft with banks - 27 381
Derivative not designated as hedges
- Foreign exchange forward contracts 239 103 52
487 225 649

55
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

25 Provisions - Current
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Provision for foreseeable losses on contracts (Refer Note 3(I)) 15,796 11,388 8,569
Provision for Product Upgradation [Refer Notes 3(l) and 20] 1,188 1,226 1,455
16,984 12,614 10,024

26 Liabilities for current tax (Net)

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Provision for tax - - 8,658
Advance tax - - (5,407)
Provision for tax (Net of advance tax) - - 3,251

Opening balances - 3,251 -

Add: Current tax payable for the year - - -
Less: Taxes paid - 1,300 -
Reclassification to Long term provisions - (1,951) -
Closing Balance - - 3,251

27 Other current liabilities

As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Advances from customers 5,314 5,772 5,158
Advance Service and Maintenance Billing 11,385 10,969 10,200
Statutory liabilities 1,944 1,930 1,902
Invoices raised in respect of Incomplete Contracts 123,263 108,356 96,401
(Refer Note 28)
Less: Adjusted against aggregated amount of cost 88,550 77,235 71,481
incurred and recognised profits (less recognised losses)
34,713 31,121 24,920
Deferred Revenue for elevator contracts towards service 855 840 714
and maintenance
54,211 50,632 42,894

28 Revenue from operations

[Refer Note 3(d)]
Year ended Year ended
March 31, 2017 March 31, 2016
Sale of products :
Contracts for supply and installation of elevators, 72,430 54,650
escalators and Trav-o-lators

Sale of services :
Income from services 46,805 44,925
Income from repairs 7,480 7,036

Other Operating Revenues :

Sale of raw materials and components 112 107
Sale of Scrap 208 137
Revenue from Operations (Net) 1,27,035 1,06,855

56
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

I) Disclosures pursuant to Ind AS 11:

Year ended Year ended

March 31, 2017 March 31, 2016
I Revenue from Contracts for supply and 72,430 54,650
installation of elevators, escalators and
Trav-o-lators recognised for the year
II Revenue from sale of services 5,833 5,725
recognised for the year
III Aggregate amounts of costs incurred and 104,710 89,456
recognised profits (less recognised losses)
up to the reporting date
IV Amount of customer advances outstanding for 5,314 5,772
contracts in progress as at the reporting date

V Amount of retentions due from customers for 231 64

contracts in progress as at the reporting date

Amount due from customers for contract work As at As at As at

(Refer Note 12) March 31, 2017 March 31, 2016 April 1, 2015
Amounts due from customers on contracts accounted
under Percentage of Completion ('PoC') is arrived at as
below [for all contracts in progress for which costs
incurred plus recognised profits (less recognised losses)
exceeds progress billings]
I Aggregate amounts of costs incurred and recognised 16,160 12,221 12,860
profits (less recognised losses) up to the reporting date

II Less: Aggregate amount of progress billings 15,236 10,950 12,083

924 1,271 777

Amount due to customers for contract work

(Refer Note 27)
Amounts due to customers on contracts accounted
under PoC is arrived at as below [for all contracts in
progress for which progress billings exceeds costs
incurred plus recognised profits (less recognised losses)]
I Aggregate of progress billings 123,263 108,356 96,401

II Less: Aggregate amounts of costs incurred and recognised 88,550 77,235 71,481
profits (less recognised losses) up to the reporting date
34,713 31,121 24,920

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

57
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

29 Other Income
[Refer Note 3(e)]
Year ended Year ended
March 31, 2017 March 31, 2016
Interest Income:
- Deposits with Banks 6,834 7,975
- Income Tax Refund 189 283
- Loans to Related Parties (Refer Note 44) 2,755 1,379
- Others 14 10
Provision for Contingency no longer required 898 -
written back (Net) (Refer Note 20)
Recoveries of expenses from Related parties 345 304
Gain on forward contracts not designated as hedges (Net) - 4
Unwinding of interest on deposits / retention 103 62
money / employee loans
Profit on sale / disposal of property, plant and equipment 50 33
Others - 32
11,188 10,082

30 Cost of material consumed

Year ended Year ended
March 31, 2017 March 31, 2016
Opening stock of components 8,071 7,651
Add : Purchases of components 59,685 43,205
Less: Closing stock of components 10,089 8,071
57,667 42,785

31 Changes In Inventories Of Work-In-Progress

Year ended Year ended
March 31, 2017 March 31, 2016
Opening Stock
Components for Elevators Constructions 147 191
147 191
Less: Closing Stock
Components for Elevators Contructions 273 147
273 147
(126) 44

32 Employee Benet Expenses

[Refer Note 3 (j)]
Year ended Year ended
March 31, 2017 March 31, 2016
Salaries, Wages, Allowances, Bonus and Benefits (Net) 23,869 22,110
Contribution to Provident and Family Pension Scheme 1,176 1,148
Contribution to Superannuation Scheme 170 168
Contribution to Gratuity Fund 579 591
Contribution to Employees' State Insurance and 66 81
Employees' Deposit Linked Insurance Scheme
Share-based payment to employees (Refer Note 50) 389 214
Workmen and staff welfare expenses 931 933
27,178 25,245

58
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

I Dened Contribution Plans

a. Superannuation Fund
b. State Defined Contribution Plans
- Employers’ Contribution to Employees State Insurance
Year ended Year ended
March 31, 2017 March 31, 2016
Amount recognised in the Statement of Profit and Loss
(i) Employers' Contribution to Superannuation 170 168
(ii) Employers' Contribution to Employees State Insurance 66 81
and Employees' Deposit Linked Insurance Scheme
236 249

II Dened Benet Plans

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

Present Value of Net dened

Particulars Fair Value of benet (asset)/
Obligation Plan Assets liability
Balance as on April 1, 2015 7,240 5,610 1,630
Interest cost /income 579 449 130
Current service cost 461 - 461
Total amount recognised in the statement of prot or loss 1,040 449 591
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial Assumptions 244 - 244
Actuarial (Gains)/Losses on Obligations - Due to Experience 94 - 94
Return on Plan Asset, excluding interest income - 94 (94)
Total amount recognised in other comprehensive income 338 94 244
Contributions by employer - 1,630 (1,630)
Benefit Paid (319) (319) -
Balance as on March 31, 2016 8,299 7,464 835

Present Value of Net dened

Particulars Fair Value of benet (asset)/
Obligation Plan Assets liability
Balance as on March 31, 2016 8,299 7,464 835
Interest cost /income 627 564 63
Current service cost 516 - 516
Total amount recognised in prot or loss 1,143 564 579
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial Assumptions 259 - 259
Actuarial (Gains)/Losses on Obligations - Due to Experience (363) - (363)
Return on Plan Asset, excluding interest income - 86 (86)
Total amount recognised in other comprehensive income (104) 86 (190)
Contributions by employer - 835 (835)
Benefit Paid (466) (466) -
Balance as on March 31, 2017 8,872 8,483 389

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

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

Present Value of funded obligation as at the year end (8,872) (8,299) (7,240)
Fair Value of Plan Assets as at the year end 8,483 7,464 5,610
Funded Status (389) (835) (1,630)
Unfunded Net Liability recognised in Balance Sheet (389) (835) (1,630)

59
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

C) Amount recognised in the Balance Sheet

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

Present Value of Obligation at the end of the year (8,872) (8,299) (7,240)
Fair value of plan assets at the end of the year 8,483 7,464 5,610
Liability recognised in the Balance Sheet (389) (835) (1,630)

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

As at As at
March 31, 2017 March 31, 2016

Discount Rate (per annum) 7.12% 7.56%

Rate of increase in Salary 10.00% 10.00%
Rate of Return on Plan Assets 7.12% 7.56%

- The discount rates reflects the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated
term of the obligation.
- The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and other
relevant factors such as supply and demand and the employment market.

E) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation by the amounts shown below.
Impact on dened benet obligation of Gratuity
As at March 31, 2017 As at March 31, 2016
Increase Decrease Increase Decrease

Discount Rate (0.5 % movement) (294) 313 (276) 294

Compensation levels (0.5 % movement) 303 (287) 286 (271)
Employee turnover (0.5 % movement) (56) 59 (44) 47

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

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

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

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

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

Particulars
Amount % Amount % Amount %

Debts Instruments:
Central Government Securities 652 8 605 8 594 11
State Government Securities 242 3 340 5 415 7
Corporate Bonds 1,856 22 2,102 28 2,383 42

Investment Funds:
Special Deposits Scheme 273 3 273 4 273 5
Insurance managed funds 4,492 53 3,925 52 1,726 31

Others:
Cash and cash equivalents (Net) 968 11 219 3 218 4
Total 8,483 100 7,464 100 5,610 100

60
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

G) Recognised under: March 31, 2017 March 31, 2016 April 1, 2015
Non-current employee benefit obligations [Refer Note 21(a)] - 50 919
Current employee benefit obligations [Refer Note 21(b)] 389 785 711

H) Recognised under: March 31, 2017 March 31, 2016 April 1, 2015
Expected gratuity contribution for the next year 838 785 711

I) Dened benet liability and employer contributions

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

Less than Between

Particulars a year 2 - 5 years Over 5 years Total

March 31, 2017

Defined benefit obligation (gratuity) 764 3,089 12,620 16,473
March 31, 2016
Defined benefit obligation (gratuity) 685 2,892 12,450 16,027
April 1, 2015
Defined benefit obligation (gratuity) 609 2,505 10,890 14,004

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

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

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

As at As at As at
Particulars March 31, 2017 March 31, 2016 April 1, 2015
Plan assets at period end, at fair value 27,154 24,056 21,214
Present value of benefit obligation at period end (27,154) (24,056) (21,214)
Asset recognized in balance sheet - - -
The plan assets have been primarily invested in government securities.

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

As at As at As at
Particulars March 31, 2017 March 31, 2016 April 1, 2015
Government of India (GOI) bond yield 7.12% 7.56% 7.90%
Remaining term to maturity of portfolio 5 years 5 years 5 years
Expected guaranteed interest rate - First year : 8.65% 8.80% 8.75%
- Thereafter : 8.65% 8.65% 8.65%

The Company contributed Rs. 1,176 lakhs and Rs. 1,148 lakhs to the provident fund during the years ended March 31, 2017 and March 31,
2016, respectively and the same has been recognised in the Standalone Statement of Profit and Loss under the head Employees Benefit
Expenses (Refer Note 32).
61
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

III) The Liability for leave encashment and compensated absences as at year end is Rs. 2,675 lakhs (March 31, 2016 - Rs. 2,400 lakhs
and April 1, 2015 - Rs. 1,832 lakhs). [Refer Note 21(b)]
33 Interest expense
Year ended Year ended
March 31, 2017 March 31, 2016
Interest expense on delayed payments of taxes - 52
Unwinding of discount on product upgradation provision 47 21
47 73

34 Depreciation And Amortisation Expense

Year ended Year ended
March 31, 2017 March 31, 2016
Depreciation of Property, Plant and equipment 1,278 1,373
Amortisation of Intangible Assets - -
1,278 1,373

35 Operating and other expenses

Year ended Year ended
March 31, 2017 March 31, 2016
Consumption of stores and consumables 1,352 924
Packing and forwarding charges 3,615 2,077
Repairs and maintenance:
- Buildings 258 242
- Plant and machinery 91 62
- Vehicles 40 40
- Others 413 550
Rent (Refer Note 37) 1,894 1,710
Rates and taxes 633 317
Insurance 676 345
Power and fuel 408 390
Expenses on contracts for installation/ service 4,669 3,478
Advertising, publicity and sales promotion 303 314
Commission 611 410
Commission to Non-Executive Directors 12 8
Royalties 4,370 3,855
Communication costs 388 314
Travelling and conveyance 2,216 2,112
Printing and stationery 362 342
Legal and professional charges [Refer Note (i) below] 1,430 1,117
System and software maintenance expenses 1,406 1,699
Bad trade receivables and other financial assets written off 1,854 958
Less: Withdrawn from doubtful debts and receivable provision (1,406) (681)
448 277

Bad non-financial assets written off 12 -

Less: Withdrawn from doubtful receivable provision (12) -
- -
Provision for trade receivables and other financial assets 427 2,035
Provision for non-financial assets 113 22
Provision for product upgradation (Refer Note 20 and 25) 444 2,112
Provision for contingency (Refer Note 20) - 147
Directors' fees 2 2
Expenditure towards Corporate Social Responsibility activities 362 343
[Refer Note (ii) below]
Loss on fluctuation in foreign exchange 628 695
Miscellaneous expenses 17 77
Total 27,588 26,016

62
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(I) Legal and professional charges includes auditors' remuneration (net of taxes, where applicable):
Year ended Year ended
March 31, 2017 March 31, 2016
For statutory audit 48 47
For tax audit 5 5
For other services 13 8
Reimbursement of expenses 2 2
68 62
(ii) Corporate Social Responsibility expenses :
(a) Gross amount required to be spent by the Company during the year was Rs. 359 lakhs (Previous year Rs. 343 lakhs)
(b) Amount spent during the year on:

Paid during
Particulars the year Yet to be paid Total

(I) Construction/acquisition of any asset - - -

(ii) On purposes other than (i) above Rs. 361 Lakhs Rs. 1 Lakh Rs. 362 Lakhs
(Previous year (Previous year (Previous year
Rs. 343 lakhs) Rs. NIL) Rs. 343 lakhs)
36 Earnings per share [Refer Note 3(n)]
Year ended Year ended
Particulars March 31, 2017 March 31, 2016
Profit attributable to the owners of the company 13,963 12,196
Weighted Average number of Equity Shares of Rs. 10 each during the year 11,808,222 11,808,222
Earnings Per Share (Basic and Diluted) 118.24 103.28
Nominal Value of an Equity Share 10 10
The Company does not have any outstanding potential equity shares. Consequently, the basic and the diluted earnings per share of
the Company remain the same.
37 Operating Leases [Refer Note 3(i)]
The Company has entered into non-cancellable operating leases for warehouse and office premises for a primary period of 5 to 10
years. The Company has given refundable interest free security deposits under the agreements. Certain agreements contains
provision for renewals.

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

For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016
Not later than one year 33 195
Later than one year and not later than five years 31 6
Later than five years - -

Lease payments recognised in the Statement of Profit and Loss during the year 1,894 1,710
38 Segment information
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker
("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Managing Director of the Company. The Company has identified the following segments i.e. (i)
Contract for supply and installation of elevators, escalators and trav-o-lators and (ii) services for maintenance, repairs and modernization
of elevators and escalators as reporting segments based on the information reviewed by CODM. As per Ind AS 108-Operating Segments -
'If a financial report contains both the consolidated financial statements of a parent that is within the scope of this Ind AS as well as the
parent’s separate financial statements, segment information is required to be disclosed only in the consolidated financial statements.'
Accordingly, the Segment information is disclosed in the consolidated financial Statements of the Company.
39 Research and development expenses [Refer Note 3 (g)]
The Cost of Material Consumed, Employee Benefits Expense, Depreciation and Other Expenses shown in the Statement of Profit
and Loss include Rs. 1,341 lakhs (Previous Year Rs. 1,293 lakhs) in respect of the research activities undertaken during the year.

40 The Company has carried out an independent review for assessing compliance up to March 31, 2016 with the “Transfer Pricing Rules,
2001” issued by the Central Board of Direct Taxes of India and no deviations were observed from the requirements of the aforesaid Transfer
Pricing Rules. The Company is yet to commission an independent review for assessing compliance for the year April 1, 2016 to March 31,
2017 with the aforesaid Transfer Pricing Rules. However, on the basis of self-assessment of the operations during the year, and the
conclusion drawn on independent review of its operations in the previous financial year, the Management does not expect any significant
deviations from the requirements of the aforesaid Transfer Pricing Rules.
63
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

41 Exceptional Items
For the year ended For the year ended
Particulars March 31, 2017 March 31, 2016
Impairment of investment in subsidiary [Refer Note (a) below] (150) (414)
Provision for doubtful receivables and accrued interest receivable from subsidiary 6 (269)
[Refer Note (b) below] (net of reversals)
Total exceptional expenditure (144) (683)
Notes:
(a) During the current year, pursuant to Board of Directors resolution dated February 14, 2017 and Share Purchase Agreement dated
February 23, 2017, the Company has acquired 53,700 equity shares of Rs. 100 each on March 8, 2017, representing remaining 20%
shareholding in its subsidiary company, Supriya Elevator Company (India) Limited ("Supriya") for a consideration of Rs. 150 lakhs.

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

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

42 Financial instruments – Fair values and risk management

A. Accounting classication and fair values

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

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

– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Carrying amount

March 31, 2017 Note No. Amortised Total

FVTPL FVTOCI Cost
Financial assets
(i) Loans 6(a) and 6(b) - - 73,098 73,098
(ii) Contract work-in-progress 12 - - 924 924
(iii) Trade receivables 13(a) and (b) - - 32,651 32,651
(iv) Cash and cash equivalents 14 - - 51,751 51,751
(v) Bank balance other than (iv) above 15 - - 64 64
(vi) Other financial assets 7 and 16 - - 4,611 4,611
(vii) Derivatives not designated as hedges
- Foreign exchange forward contracts 16 4 - - 4
4 - 163,099 163,103
Financial liabilities
(i) Trade payables 23 - - 20,488 20,488
(ii) Other financial liabilities 24 - - 248 248
(iii) Derivative liabilities
- Foreign exchange forward contracts 24 239 - - 239
239 - 20,736 20,975

64
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Carrying amount

March 31, 2016 Note No. Amortised Total

FVTPL FVTOCI Cost
Financial assets
(i) Loans 6(a) and 6(b) - - 14,294 14,294
(ii) Contract work-in-progress 12 - - 1,271 1,271
(iii) Trade receivables 13(a) and (b) - - 32,272 32,727
(iv) Cash and cash equivalents 14 - - 107,025 107,025
(v) Bank balance other than (iv) above 15 - - 46 46
(vi) Other financial assets 7 and 16 - - 3,412 3,412
(vii) Derivatives not designated as hedges
- Foreign exchange forward contracts 16 4 - - 4
4 - 158,320 158,324
Financial liabilities
(i) Trade payables 23 - - 16,832 16,832
(ii) Other financial liabilities 24 - - 122 122
(iii) Derivative liabilities
- Foreign exchange forward contracts 24 103 - - 103
103 - 16,954 17,057

Carrying amount

April 1, 2015 Note No. Amortised Total

FVTPL FVTOCI Cost
Financial assets
(i) Loans 6(a) and 6(b) - - 10,507 10,507
(ii) Contract work-in-progress 12 - - 777 777
(iii) Trade receivables 13(a) and (b) - - 28,003 28,003
(iv) Cash and cash equivalents 14 - - 103,714 103,714
(v) Bank balance other than (iv) above 15 - - 20 20
(vi) Other financial assets 7 and 16 - - 3,529 3,529
- - 146,550 146,550
Financial liabilities
(i) Trade payables 23 - - 13,398 13,398
(ii) Other financial liabilities 24 - - 597 597
(iii) Derivative liabilities
- Foreign exchange forward contracts 24 52 - - 52
52 - 13,995 14,047

B. Measurement of fair values

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

ii) Fair value hierarchy

No financial instruments are recognised and measured at fair value, except derivative contracts which are measured at fair value through
statement of profit and loss. These derivative contracts are over-the-counter short term foreign exchange forwards that are not traded in an
active market. Their fair valuation is determined using valuation techniques that maximise the use of observable market data and rely as
little as possible on entity-specific estimates and quotes received from the banks. Since all significant inputs required to fair value these
derivative contracts are observable, the instruments are classified as level 2. Other than derivatives liabilties, all other financial assets and
liablities are classfied as level 3.

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

65
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

C. Financial risk management

Risk management framework

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

i) Management of the credit risk

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

Trade Receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Concentrations of credit risk
with respect to trade receivables are limited, due to the Company’s customer base being large. All trade receivables are reviewed and
assessed for default on a regular basis. Our historical experience of collecting receivables, supported by the level of default, is that the
credit risk is low.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected
credit losses. The Company assesses and manages credit risk based on the Company's credit policy. Under the Company credit policy
each new customer is analyzed individually for credit worthiness before the Company's standard payment and delivery terms and
conditions are offered. The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which
requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining whether the credit risk of a
financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers
reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward
looking information.

The Company's accounts receivable are geographically dispersed. The Management do not believe there are any particular customer or
group of customers that would subject the Company to any significant credit risks in the collection of accounts receivable.

Following is the movement in Provision for Expected Credit Loss on Trade Receivables:

Year ended Year ended

Particulars March 31, 2017 March 31, 2016
Loss allowance at the beginning of the year 6,227 5,069
Changes in allowance during the year (968) 1,158
Loss allowance as at the end of the year 5,259 6,227

Loans to related parties:

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

Cash and cash equivalents

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

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

Other Financial Assets:

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

66
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

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

Year ended Year ended

Security deposits March 31, 2017 March 31, 2016
Loss allowance at the beginning of the year 622 426
Changes in allowance during the year (11) 196
Loss allowance as at the end of the year 611 622

Year ended Year ended

Receivable from subsidiary company March 31, 2017 March 31, 2016
Loss allowance at the beginning of the year 269 -
Changes in allowance during the year (6) 269
Loss allowance as at the end of the year 263 269

ii. Liquidity risk

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

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

Exposure to liquidity risk

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

Contractual cash ows

Particulars Carrying Less than 1- 5 years More than

Total 1 year 5 years
amount
As at March 31, 2017
Non-derivative nancial liabilities
Trade payables 20,488 20,488 20,488 - -
Other financial liabilities 248 248 248 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 239 239 239 - -

As at March 31, 2016

Non-derivative nancial liabilities
Trade payables 16,832 16,832 16,832 - -
Other financial liabilities 122 122 122 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 103 103 103 - -

As at April 1, 2015
Non-derivative nancial liabilities
Trade payables 13,398 13,398 13,398 - -
Other financial liabilities 597 597 597 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 52 52 52 - -

67
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

iii. Market risk

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

The details of forward contracts outstanding as at the balance sheet date are as follows:
As at March 31, 2017 As at March 31, 2016 As at April 1, 2015
Particulars Number of Foreign Number of Foreign Number of Foreign
currency Amount currency Amount currency Amount
contracts contracts contracts
Import contracts
EURO 13 40 2,911 7 12 988 2 5 367
JPY 6 706 433 7 660 405 2 74 40
USD 4 6 412 17 14 1,011 3 15 970
CHF 4 1 93 2 1 50 - - -
CNH 10 284 2,770 17 93 997 - - -
SGD - - - 1 * 5 - - -
HKD 1 1 12 - - - - - -

Total 6,631 3,456 1,377

Export contracts
USD 2 1 74 6 2 120 - - -
Total 74 120 - -

The Company's exposure to foreign currency risk at the end of the reporting period expressed in INR lakhs, are as follows:
March 31, 2017 March 31, 2016 April 1, 2015
Particulars Foreign Foreign Foreign
currency Amount currency Amount currency Amount

Receivables
USD 10 627 5 316 10 617

Payables
USD 12 764 6 374 20 1,240
EURO - - 8 631 7 497
SGD * * - - * 2
HKD 9 73 18 158 12 99
JPY - - - - 54 28
CNH - - 23 232 * *
CHF - - - - * 27

Sensitivity analysis

A 10% strengthening / weakening of the respective foreign currencies with respect to functional currency of the Company would result in
increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular
interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out based
on the exposures as of the date of statements of financial position.
Effect in INR Prot or loss
Currencies March 31, 2017 March 31, 2016
USD 14 6
EURO - 63
SGD * -
HKD 7 16
CNH - 23
21 108
* Amounts are below rounding off norms adopted by the Company

68
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

43 Tax expense
A. Amounts recognised in Statement of Prot and Loss

Year ended Year ended

March 31, 2017 March 31, 2016
Income tax expense
Current income tax
Current tax on profits for the year 8,800 7,420
Adjustments for current tax of prior periods (29) (777)
Total current tax expense 8,771 6,643

Defered income tax asset /(liability), net

(Decrease) increase in deferred tax liabilites (1,128) (393)
Total deferred tax expense/(benefit) (1,128) (393)
Income Tax expense for the year 7,643 6,250

B. Amounts recognised in other comprehensive income For the period ended 31 March, 2017

Before tax Tax (expense) Net of tax

benet
Remeasurements of defined benefit liability (asset) 190 (66) 125
190 (66) 125

For the period ended 31 March, 2016

Before tax Tax (expense) Net of tax

benet
Remeasurements of defined benefit liability (asset) (245) 85 (160)
(245) 85 (160)

C. Reconciliation of effective tax rate

Year ended Year ended

March 31, 2017 March 31, 2016
Prot before tax 21,606 18,446
Tax using the Company’s domestic tax rate 7,477 6,384
(Current year 34.61% and Previous Year 34.61%)
Add Tax Effect on amounts which are not deductible
(taxable) in calculating taxable income:
Adjustments for current tax of prior periods (29) (777)
Interest on delayed payments of taxes - 18
Impairment of investment in the subsidiary 52 143
Share based payments 134 74
Others 9 408
7,643 6,250

69
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

D. Movement in deferred tax balances

Deferred Tax Assets Deferred Tax Assets/(Liability) Recognised in statement Recognised Deferred Deferred Net Deferred Tax Asset
April 1, 2016 of prot or loss in OCI tax assets tax liability March 31, 2017
Provision for doubtful debts/advances 2,816 (306) - 2,510 - 2,510
Provision for Compensated Absences and Gratuity 831 229 - 1,060 - 1,060
Voluntary Separation Plan 262 (94) - 168 - 168
Provision for Product Upgradation 810 (103) - 707 - 707
Disallowances under Section 40(a) of the Income Tax Act, 1961 135 - - 135 - 135
Depreciation 64 85 - 149 - 149
Provision for Contingency 6,048 (940) - 5,108 - 5,108
Remeasurements of defined benefit obligation - 66 (66) - - -
Provision for foreseeable losses on contracts - 2,667 - 2,667 2,667
Deferred revenue 538 (476) - 62 - 62

Deferred Tax Assets 11,504 1,128 (66) 12,566 - 12,566

Depreciation -
Net tax assets 11,504 1,128 (66) 12,566 - 12,566

Deferred Tax Assets/(Liability) Recognised in statement Recognised Deferred Deferred Net Deferred Tax Asset
Deferred Tax Assets April 1, 2015 of prot or loss tax liability March 31, 2016
in OCI tax asset
Provision for doubtful debts/advances 2,206 610 - 2,816 - 2,816
Provision for Compensated Absences and Gratuity 1,177 (346) - 831 - 831
Voluntary Separation Plan 370 (108) - 262 - 262
Provision for Product Upgradation 551 259 - 810 - 810
Disallowances under Section 40(a) of the Income Tax Act, 1961 133 2 - 135 - 135
Depreciation - 64 - 64 - 64
Provision for Contingency 6,429 (381) - 6,048 - 6,048
Remeasurements of defined benefit obligation - (85) 85 - - -
Deferred revenue 207 331 - 538 - 538

Deferred Tax Assets 11,073 347 85 11,504 - 11,504

Depreciation (46) 46 - - - -
Net tax assets 11,027 393 85 11,504 - 11,504

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

70
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

44 Related Party Disclosures

A Relationships:
(I) Where Control Exists
United Technologies Corporation Inc., United States Ultimate Holding Company
United Technologies South Asia Pacific Pte Ltd, Singapore Holding Company
(Formerly known as Singapore Holdco. Pte. Ltd, Singapore)
(II) Subsidiary Company
Supriya Elevator Company (India) Limited, India
(III) Associate Company
Trio Elevators Co (India) Limited, India
(IV) Parties Under Common Control with whom transactions have taken place during the year.
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey
Carrier Air Conditioning &Refrigeration R&D Management (Shanghai)
Carrier Airconditioning & Refrigeration Limited, India
Carrier Race Technologies Private Limited, India
Carrier Singapore (PTE) Limited, Singapore
Chubb Alba Control Systems Limited, India
Concepcion-Otis Philippines, Inc., Philippines
Elevators (Private) Limited, Sri Lanka
Guangzhou Otis Elevator Company Ltd, China
JSC MOS OTIS Russia
Nippon Otis Elevator Company, Japan
Otis A.S., Czech Republic
Otis AS, Norway
Otis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis Elevator Co., Ltd., China)
Otis Elevator (China) Co., China
Otis Elevator Co Pty Ltd, Australia
Otis Elevator Company (H.K.) Limited, Hong Kong
Otis Elevator Company (M) SDN BHD, Malasiya
Otis Elevator Company (S) Pte. Ltd., Singapore
Otis Elevator Company Ltd, Thailand
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia
Otis Elevator Company, New Jersey, United States
Otis Elevator Traction Machine (China) Co. Ltd., China
Otis Elevator VietNam Company Limited, Vietnam
Otis Elevator Worldwide SPRL, Belgium
Otis Elevator, Korea
Otis Elevators International Inc., Hong Kong
Otis GMBH & Co. OHG, Germany
Otis High-Rise Elevator(Shanghai) Co., Ltd., China
Otis L.L.C., U. A. E.
OTIS SCS, France
P.T.Citas Otis Elevator, Indonesia
Seral Otis Industria Metalurgica Ltda, Chile
Sigma Elevator (M) SDN BHD, Malasiya
Sigma Elevator Singapore Pte Ltd, Singapore
United Technologies Corporation India Private Limited, India
UTC Building & Industrial Systems EMEA SAS, France
UTC Fire & Security India Limited, India
Zardoya Otis S.A., Spain

(V) Key Managerial Personnel

Sebi Joseph Managing Director
Pedro Silva Ribeiro Geada Marcal (Till June 29, 2015) Director
Puthan Naduvakkat Suma Director
Priya Shankar Dasgupta Independent Director
Late Ram Sukhraj Tarneja (Till August 07, 2015) Independent Director
Anil Vaish (From March 10, 2016) Independent Director

71
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(VI)  Transaction with Post Employment benet entities

Otis Elevator Company (India) Limited Employees' Gratuity Fund
Otis Elevator Company (India) Limited Staff Provident Fund

B Transactions:
(I) Transactions with parties referred to in (V) above
Year ended Year ended
Particulars March 31, 2017 March 31, 2016
Short term employee benefits:
- Salaries and other employee benefits 522 364
Post employment benefits - gratuity 52 55
Long term employee benefits - Compensated absences 21 24
Employee share-based payment 16 43
Commission and sitting fee to non executive directors 14 8
Total 625 494
# In addition to the above, 600 units stock options (Previous Year 861 Units stock options) of United Technologies
Corporation Inc., USA, the Ultimate Holding Company, were exercised during the year.

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

Category For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Purchase of Goods and Materials

Otis Elevator (China) Co., China IV 393 314
Otis Electric Elevator Co., Ltd., China IV 3,315 1,056
(Formerly known as Xizi Otis Elevator Co., Ltd., China)
Zardoya Otis S.A., Spain IV 4,131 2,029
Otis GMBH & Co. OHG, Germany IV 2,215 1,039
Otis Elevator Company, New Jersey, United States IV 166 137
Otis Elevator Traction Machine (China) Co. Ltd., China IV 30 49
Nippon Otis Elevator Company, Japan IV 894 290
OTIS SCS, France IV 228 275
Guangzhou Otis Elevator Company Ltd, China IV 88 162
Otis High-Rise Elevator(Shanghai) Co., Ltd., China IV 1,378 1,570
JSC MOS OTIS Russia IV - 3
Otis A.S., Czech Republic IV 8 29
Otis Elevator, Korea IV - 1
Supriya Elevator Company (India) Limited, India II 23 -
Total 12,869 6,954
Purchase of Fixed Assets
Zardoya Otis S.A., Spain IV 20 4
Carrier Airconditioning & Refrigeration Limited, India IV 11 30
Chubb Alba Control Systems Limited, India IV 5 26
Total 36 60
System and Software Maintenance Expenses
Otis Elevator Company (S) Pte. Ltd., Singapore IV 21 40
Otis Elevator Company, New Jersey, United States IV 489 392
Otis Elevators International Inc., Hong Kong IV 383 398
Total 892 831
Legal and Professional Expenses
Otis Elevator Company, New Jersey, United States IV 11 17
United Technologies Corporation India Private Limited, India IV 14 20
Total 25 36

72
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Category For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Royalty Expenses
Otis Elevator Company, New Jersey, United States IV 4,370 3,855
Total 4,370 3,855
Repairs and Maintenance - Others
Carrier Airconditioning & Refrigeration Limited, India IV 26 20
Chubb Alba Control Systems Limited, India IV 18 -
Total 43 20
Reimbursement of Expenses to related parties
Otis Elevator Company, New Jersey, United States IV 44 229
Otis Elevator VietNam Company Limited, Vietnam IV 1 -
OTIS SCS, France IV 42 88
Otis Elevator Company (S) Pte. Ltd., Singapore IV * 5
Otis Elevator Co Pty Ltd, Australia IV * 4
Nippon Otis Elevator Company, Japan IV - 2
Otis High-Rise Elevator(Shanghai) Co., Ltd., China IV * 6
Carrier Airconditioning & Refrigeration Limited, India IV - 2
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey IV - 1
Carrier Race Technologies Private Limited, India IV * *
Carrier Air Conditioning &Refrigeration R&D Management IV - 8
(Shanghai) Co. Ltd.,China
United Technologies South Asia Pacific Pte Ltd, Singapore I 1 -
Otis AS, Norway IV 2 -
Otis Elevator (China) Co., China IV 10 -
Total 99 346
Rent paid to Other Companies
Carrier Airconditioning & Refrigeration Limited, India IV 73 64
Total 73 64
Revenue from Sale of Goods/Services
Otis Elevator Co Pty Ltd, Australia IV - 4
Seral Otis Industria Metalurgica Ltda, Chile IV 63 91
Otis Elevator Company (H.K.) Limited, Hong Kong IV * *
Concepcion-Otis Philippines, Inc., Philippines IV - 1
Elevators (Private) Limited, Sri Lanka IV 978 49
P.T. Citas Otis Elevator, Indonesia IV - 1
Total 1,042 147
Recovery from related parties
Otis Elevator Company, New Jersey, United States IV 38 *
Sigma Elevator Singapore Pte Ltd, Singapore IV 7 -
United Technologies South Asia Pacific Pte Ltd, Singapore I 300 304
Total 345 304

73
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Category For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Recovery of expenses from related parties

Otis Elevator Company (M) SDN BHD, Malasiya IV 102 -
Otis Elevator Company Ltd, Thailand IV 1 -
Concepcion-Otis Philippines, Inc., Philippines IV 59 -
Carrier Airconditioning & Refrigeration Limited, INDIA IV 57 -
UTC Fire & Security India Limited, India IV * -
Sigma Elevator (M) SDN BHD, Malasiya IV * -
Sigma Elevator Singapore Pte Ltd,Singapore IV 1 -
Chubb Alba Control Systems Limited, INDIA IV * -
Carrier Race Technologies Private Limited, India IV * -
Otis Elevator Company, New Jersey, United States IV 158 114
United Technologies South Asia Pacific Pte Ltd, Singapore I 11 21
Otis L.L.C., U. A. E. IV 7 7
Otis Elevator Company (S) Pte. Ltd., Singapore IV 4 4
Otis Elevator, Korea IV - 2
Trio Elevators Co (India) Limited, India III - 14
Supriya Elevator Company (India) Limited, India II 207 183
Otis Elevator (China) Co., China IV 3 13
Otis Electric Elevator Co., Ltd.(Formerly known as Xizi Otis IV * 14
Elevator Co., Ltd., China)
Carrier Air Conditioning &Refrigeration R&D Management IV 115 131
(Shanghai) Co. Ltd.,China
Carrier Singapore (PTE) Limited, Singapore IV 3 17
UTC Building & Industrial Systems EMEA SAS, France IV - 140
Nippon Otis Elevator Company, Japan IV 272 41
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia IV 3 3
Otis High-Rise Elevator(Shanghai) Co., Ltd., China IV - 2
Otis Elevators International Inc., Hong Kong IV - 2
Otis Elevator Worldwide SPRL,Belgium IV 61 -
P.T. Citas Otis Elevator, Indonesia IV 1 -
Others IV - 2
Total 1,066 711
Recovery of rent from related parties
(netted off from rent expense)
Supriya Elevator Company (India) Limited, India II 4 2
Carrier Airconditioning & Refrigeration Limited, India IV 144 139
Carrier Race Technologies Private Limited, India IV 15 10
Chubb Alba Control Systems Limited, India IV 35 25
UTC Fire & Security India Limited, India IV 29 21
Total 226 197
Inter Corporate Loan Given / (Repaid) (Net)
UTC Fire & Security India Limited, India IV 5,450 2,300
Chubb Alba Control Systems Limited, India IV 53,612 115
Carrier Race Technologies Private Limited, India IV - 1,530
United Technologies Corporation India Private Limited, India IV (235) (47)
Total 58,827 3,898
Interest on Inter Corporate Loan Given
UTC Fire & Security India Limited, India IV 1,661 1,047
Chubb Alba Control Systems Limited, India IV 715 100
Carrier Race Technologies Private Limited, India IV 366 204
United Technologies Corporation India Private Limited, India IV 13 28
Total 2,755 1,379

74
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Category For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016

Dividend paid during the year

United Technologies South Asia Pacific Pte Ltd, Singapore I 11,020 6,380
Total 11,020 6,380
Others
Impairment of investment
Supriya Elevator Company (India) Limited, India II 150 414
Provision for doubtful receivables
Supriya Elevator Company (India) Limited, India II - 259
Provision for Interest accured on recievables
Supriya Elevator Company (India) Limited, India II - 10
Reversal of provision for doubtful recievables
Supriya Elevator Company (India) Limited, India II 6 -
Total 156 683

Balance as at Balance as at Balance as at

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

Loan Receivable
UTC Fire & Security India Limited, India IV 15,430 9,980 7,680
Carrier Race Technologies Private Limited, India IV 2,930 2,930 1,400
United Technologies Corporation India Private Limited, India IV - 235 282
Chubb Alba Control Systems Limited, India IV 54,577 965 850
Total 72,937 14,110 10,212
Accrued Interest on Inter Corporate Deposit (net of TDS)
UTC Fire & Security India Limited, India IV 1,495 942 571
United Technologies Corporation India Private Limited, India IV - 4 -
Chubb Alba Control Systems Limited, India IV 644 - -
Supriya Elevator Company (India) Limited, India II - - 10
(Net of provision of Rs. 10 lakhs (March 31, 2016, Rs. 10 lakhs,
April 1, 2015 - Rs. Nil)
Carrier Race Technologies Private Limited, India IV 330 - 21
Total 2,468 946 602
Payables
Otis Elevator Company, New Jersey, United States IV 1,099 1,001 1,090
Otis Elevators International Inc., Hong Kong IV 85 158 99
Otis Elevator Company (S) Pte. Ltd., Singapore IV * 5 -
OTIS SCS, France IV 173 176 156
Otis AS, Norway IV - 2 -
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey IV - 1 -
Carrier Airconditioning & Refrigeration Limited, India IV 13 25 25
Zardoya Otis S.A., Spain IV 1,277 821 256
Otis GMBH & Co. OHG, Germany IV 807 360 315
Nippon Otis Elevator Company, Japan IV 385 363 40
Guangzhou Otis Elevator Company Ltd, China IV 23 56 109
Otis High-Rise Elevator(Shanghai) Co., Ltd., China IV 271 508 173
Otis Elevator (China) Co., China IV 135 167 324
Otis Elevator Traction Machine (China) Co. Ltd., China IV 18 20 -
Otis A.S., Czech Republic IV 4 3 12
Otis Electric Elevator Co., Ltd. IV 2,131 561 343
(Formerly known as Xizi Otis Elevator Co., Ltd., China)
Otis Elevator VietNam Company Limited, Vietnam IV 1 - -

75
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Balance as at Balance as at Balance as at

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

Carrier Race Technologies Private Limited, India IV - * -

Carrier Air Conditioning &Refrigeration R&D Management IV - 8 -
(Shanghai) Co. Ltd.,China
United Technologies South Asia Pacific Pte Ltd, Singapore I 1 - -
United Technologies Corporation India Private Limited, India IV - - 18
Pratt & Whitney, U. S. A. IV - 7 7
Total 6,422 4,243 2,972
Receivables
Trade Recievables:
Elevators (Private) Limited, Sri Lanka IV 39 - -
Other Non Current Financial Assets:
Supriya Elevator Company (India) Limited, India II - - 252
(Net of provision of Rs. 254 lakhs (March 31, 2016 -
Rs. 259 lakhs, April 1, 201- Rs. Nil)
United Technologies South Asia Pacific Pte Ltd, Singapore I 112 87 427
Otis Elevator Company (S) Pte. Ltd., Singapore IV 1 4 1
Otis Elevators International Inc., Hong Kong IV - - 2
Otis Elevator Company, Kuwait IV - - 1
P.T. Citas Otis Elevator, Indonesia IV 1 * -
Otis Elevator, Korea IV - - 2
Concepcion-Otis Philippines, Inc., Philippines IV 11 - -
Otis Elevator Company (M) SDN BHD, Malasiya IV 32 - -
Seral Otis Industria Metalurgica Ltda, Chile IV 34 - 34
Zayani Otis Elevator Company W.L.L., Bahrain IV - - 3
Otis Elevator Company Ltd, Thailand IV 1 - -
Otis Elevator Worldwide SPRL,Belgium IV 59 - -
Otis Elevator VietNam Company Limited, Vietnam IV - - 1
Sigma Elevator (M) SDN BHD, Malasiya IV * - -
Sigma Elevator Singapore Pte Ltd,Singapore IV 8 - -
Trio Elevators Co (India) Limited, India III 14 14 -
Carrier Airconditioning & Refrigeration Limited, India IV 64 48 44
Chubb Alba Control Systems Limited, India IV 23 11 4
Nippon Otis Elevator Company, Japan IV 80 39 -
Carrier Race Technologies Private Limited, India IV 10 3 9
UTC Fire & Security India Limited, India IV 23 8 19
Otis Elevator (China) Co., China IV 3 13 6
Otis High-Rise Elevator(Shanghai) Co., Ltd., China IV - 2 -
Otis Electric Elevator Co., Ltd.(Formerly known as IV - 26 114
Xizi Otis Elevator Co., Ltd., China)
Otis Elevator Co Pty Ltd, Australia IV - 4 -
Otis Elevator Company, New Jersey, United States IV 18 - 44
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia IV 2 3 -
Carrier Air Conditioning & Refrigeration R&D Management IV 91 100 -
(Shanghai) Co. Ltd.,China
Carrier Singapore (PTE) Limited, Singapore IV - 9 -
UTC Building & Industrial Systems EMEA SAS, France IV - 39 -
588 410 712
Total 627 410 969

Note:
For information on transactions with post employment benefit plans mentions in A (VI) above, refer the note 32.

*amounts are below rounding off norms adopted by the company.

76
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

45 Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act). The disclosures pursuant to the said MSMED Act are as follows:

Year ended Year ended Year ended

Particulars March 31, 2017 March 31, 2016 March 31, 2015
Principal amount due to suppliers registered under the
MSMED Act and remaining unpaid as at year end 7 5 2

Interest due to suppliers registered under the MSMED Act

and remaining unpaid as at year end * 1 *

Principal amounts paid to suppliers registered under the

MSMED Act beyond the appointed day during the year 52 27 10

Interest paid, other than under Section 16 of MSMED Act

to suppliers registered under the MSMED Act beyond the
appointed day during the year - - -

Interest paid, under Section 16 of MSMED Act to suppliers

registered under the MSMED Act beyond the appointed
day during the year 1 * *

Interest due and payable towards suppliers registered

under MSMED Act for payments already made 1 1 *

Further interest remaining due and payable for earlier

years - - -

* Amounts are below rounding off norms adopted by the Company for which following information is given in Rupees below:
Detailed break-up of Interest is as follows:

Year ended Year ended Year ended

Particulars March 31, 2017 March 31, 2016 March 31, 2015
Rupees Rupees Rupees
Interest due to suppliers registered under the MSMED Act and 12,270 73,000 33,066
remaining unpaid as at year end

Interest paid, under Section 16 of MSMED Act to suppliers registered 73,000 33,066 27,842
under the MSMED Act beyond the appointed day during the year

Interest due and payable towards suppliers registered under MSMED 126,476 65,353 30,270
Act for payments already made

The above information regarding total outstanding dues to Micro Enterprises and Small Enterprises and that is given in Note 23 has
been determined to the extent such parties have been identified on the basis of information available with the Company.

77
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

46 Contingent Liabilities As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
a) Claims against the Company not acknowledged as debt
(i) Income-tax matters
- Matters decided against the Company in respect of
which the Company has preferrred an appeal.

The demand outstanding against the Company not

acknowledged as debts and not provided for, in respect 14 14 14
of which the Company is in appeal, pertains to litigations/
disputes with various Income Tax Authorities.
The Company has strong grounds of appeal and does
not foresee any outflow in this regard.
(ii) Sales tax matters
- Show Cause Notices 646 646 1,323
- Demand Notices 33,334 32,648 28,123
Note:
Assessed Sales Tax liabilities of the Company not
acknowledged as debts and not provided for, in respect
of which the Company is in appeal pertains to litigations/
disputes with various Sales Tax Authorities. Based on
opinion received from legal consultants, the Management
is of view that the Company does not expect an outflow
in this regard.
(iii) Excise and Service Tax matters
Excise matters
- Show Cause Notices 44,601 40,356 37,637
- Demand Notices 3,234 3,234 3,234

Service Tax matters

- Show Cause Notices - 1,515 137
- Demand Notices 24,373 22,602 22,465
Excise and Service tax liabilities of the Company not
acknowledged as debts and not provided for, in respect
of which the Company is in appeal pertains to litigations/
disputes with various Excise and Service Tax Authorities.
Based on opinion received from legal consultants, the
Management is of view that the Company has strong
grounds of appeal and does not foresee any outflow in
this regard.
Interest with respect to above matters has been
considered to the extent quantified by the tax authorities.

b) Litigations / claims against the Company by customers /

ex-employees / general public. 3,643 4,335 4,358
The Company has strong grounds of appeal and does
not foresee any outflow in this regard.

c) Commitments

i. Estimated amount of contracts [net of capital advances of

Rs. 26 lakhs (March 31, 2016 : Rs. 1 lakh, April 1, 2015 : 507 172 264
Rs. 204 lakhs) remaining to be executed on Capital
Account not provided for.
ii. Guarantees given by banks to various government
departments and customers for specific business 19,691 14,028 9,554
purpose. The Management is of opinion that there will be
no impact on future cash flows of the Company.

78
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

47 Capital Management

The Company determines the capital requirements based on its financial performance, operating and long term investment plans.The
funding requirements are met through operating cash flows generated. For the purpose of Company's Capital Risk Management, "Capital"
includes issued equity share capital, securities premium and all other equity reserves attributable to it's shareholders.

The Company's objective in managing its capital is to safeguard its ability to continue as a going concern and to maximise shareholder's
values.

The capital structure of the Company is based on management’s assessment of the appropriate balance of key elements in order to meet
its strategic and day-to day needs. The Company considers the amount of capital in proportion to risk and manage the capital structure in
light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital
structure, the Company may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company maintains a stable and strong capital structure with a focus on total equity so as to maintain shareholders and creditors
confidence and to sustain future development and growth of its business. The Company takes appropriate steps in order to maintain, or if
necessary adjust, its capital structure.

The management monitors the return on capital as well as the level of dividends to shareholders. Refer table below for the dividends paid :

For the year ended For the year ended

Particulars March 31, 2017 March 31, 2016
Equity shares
Interim dividend Rs. 40 per fully paid share - 4,724
Final dividend for the year ended March 31, 2016 of Rs. 95 11,218 1,771
(Previous year - Rs. 15) per fully paid share

As at As at
Particulars March 31, 2017 March 31, 2016
Dividends not recognised at the end of the reporting period
In addition to the above, subsequent to the year end the directors of the
Company have recommended the payment of final dividend of - 11,218
Rs. Nil (March 31, 2016 - Rs. 95) per fully paid equity share.

48 Events Occuring after the balance sheet date:

Subsequent to year end, the Board of directors of the Company have declared an interim dividend of Rs. 360 per share aggregating
Rs. 42,510 lakhs vide Board resolution dated July 06, 2017. The dividend distribution tax paid on these dividend is Rs. 8,654 lakhs.

79
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

49 Offsetting nancial assets and nancial liabilities

The following table presents the recognized financial instruments that are subject to enforceable master netting arrangements and other
similar agreements but not offset, as at March 31, 2017, March 31, 2016 and April 1, 2015.

Particulars Related amounts not offset

Amounts subject
Gross Amounts to master netting Net amount
arrangements

As at March 31, 2017

Other nancial assets

Derivative not designated as hedges

- Foreign exchange forward contracts 4 (4) -

Other nancial liabilities

Derivative Financial Liabilities

Foreign exchange forward contracts 239 (4) 235

As at March 31, 2016

Other nancial assets
Derivative not designated as hedges
- Foreign exchange forward contracts 4 (4) -

Other nancial liabilities

Derivative Financial Liabilities

Foreign exchange forward contracts 103 (4) 99

As at April 1, 2015
Other nancial liabilities

Derivative Financial Liabilities

Foreign exchange forward contracts 52 - 52
Master netting arrangements - not currently enforceable

Agreements with derivative counterparties are based on ISDA Master Agreement. Under the terms of these arrangements, only where
certain credit events occur (such as default), the net position owing/receivable to a single counterparty in the same currency will be taken
as owing and all the relevant arrangements terminated. As the company does not presently have a legally enforceable right of set-off, these
amounts have not been offset in the balance sheet, but have been presented separately in the table above.
50 Employee share based payments

Certain employees of the Company have been granted Long-Term Incentive Plan (LTIP) namely - Stock Appreciation Rights (SAR),
Performance Stock Units (PSU), and Restricted Stock Units (RSU) by the Ultimate Parent Company United Technologies Corporation
(UTC).

- SARs are the grant of a “right” to acquire UTC shares based on the appreciation in value of a fixed number of shares.
- PSUs are units (representing one UTC Share) transferred to the employee subject to the satisfaction of certain performance conditions.
- RSUs are units (representing one UTC Share) transferred to the employee at the end of the vesting period.

Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. LTIP awards with
performance based vesting generally have a minimum three-year vesting period and vest based on performance against pre-established
metrics. The fair value of each option award is estimated on the date of grant using a binomial lattice model.

In accordance with Note 3 (j), the Company has recognised an employee benefit expense towards share based payment of Rs. 389 lakhs
(March 31, 2016: Rs. 214 lakhs) with a corresponding increase in Other Equity as equity contribution from the Ultimate Holding Company.
51 Transition to Ind AS:

These are the Company’s first standalone financial statements prepared in accordance with Ind AS.

The accounting policies set out in Notes 2 and 3 have been applied in preparing the financial statements for the year ended March 31,
2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an
opening Ind AS balance sheet at April 1, 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the

80
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards
notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act ("Previous GAAP").
An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance
and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Previous GAAP
to Ind AS.

Ind AS optional exemptions

1) Investments in Subsidiary and Associate Company

Ind AS 101 allows a first time adopter to record the carrying value of investment in subsidiary and associate as per pervious GAAP (i.e.
Indian GAAP carrying value on transition date) or fair value of investment in subsidiary and associate at transition date as deemed cost
under Ind AS.

Accordingly, the Company has elected to carry its investments in subsidiary and associate at Previous GAAP carrying value on transition
date.

2) Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised
in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at
the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Company has elected to measure all of its property, plant and equipment and other intangible assets at their previous
GAAP carrying value.

3) Share based payments

A first-time adopter is not required to apply Ind AS 102 Share-based Payment to equity instruments that were vested on or before the date
of transition to Ind AS. Accordingly, the Company has accounted only for the unvested options granted by the parent outstanding as on
transition date.

4) Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date.
This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition
date."

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business
combinations occurring prior to the transition date have not been restated. The Company has applied same exemption for investments in
associates and subsidiary.

Ind AS mandatory exceptions

1) Estimates

An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date
in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence
that those estimates were in error.

Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The
Company made estimates for impairment of financial assets based on expected credit loss model.

2) Classication and measurement of nancial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that
adjusts at the date of transition to Ind AS.

81
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

B. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent the
reconciliations from previous GAAP to Ind AS.

Reconciliation of total Equity as per Previous GAAP and Ind AS :

Description Notes to rst As at As at

time adoption March 31, 2016 April 1, 2015
Total equity as per Previous GAAP 81,670 87,999
Add:
Proposed dividends
8 13,502 2,132
(including dividend distribution tax)
Finance income recognised on effective
interest rate basis on security deposits 4 165 99

Finance income recognised on effective

interest rate basis on Employee loans 4 61 68

Fair valuation of Product

Upgradation Provision 6 153 16

Less:

Impact due to change in Revenue

1 (1,478) (515)
recognition policy in line with Ind AS

Allowance on account of expected credit (419) (318)

5
losses on trade receivables

Rent recognised over lease period

4 (122) (120)
towards interest free security deposits

Employee cost recognised over

4 (70) (79)
employee loan period

Mark to Market adjustment (99) (27)

2
on derivative contracts
Others (16) (20)
Deferred tax impact of
Ind AS adjustments 9 631 310

Total 12,308 1,546

Total equity as per Ind AS 93,978 89,545

82
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Reconciliation of total comprehensive income for the year ended March 31, 2016

Description Notes to rst For the year

time adoption ended March 31, 2016
Prot after tax as per previous GAAP 12,858

Adjustments:

ADD:

Finance income recognised on effective

interest rate basis on security deposits 4 65

Finance income recognised on effective

interest rate basis on Employee loans 4 9

Fair valuation of Product Upgradation Provision 6 137

Remeasurements of the net defined benefit plans 3 245

Others 4

Less:

Impact due to change in Revenue recognition

1 (963)
policy in line with Ind AS

Allowance on account of expected credit losses on trade receivables 5 (101)

Rent recognised over lease period towards

4 (2)
interest free security deposits

Employee cost recognised over employee loan period 4 (7)

Mark to Market adjustment on derivative contracts 2 (72)

Share based payments 7 (214)

Deferred tax impact of Ind AS adjustments 9 237

Net Prot as per Ind AS for the year 12,196

Items that will not be reclassified to Statement of Profit and Loss

Actuarial loss arising from remeasurements

3 (245)
of post employments benefits

Deferred tax relating to this item 9 85

Other comprehensive income, net of income tax (160)

Total comprehensive income as per Ind AS 12,036

Cash ow reconciliation:

The impact of Ind AS adoption on the Standalone Statement of cash flows for the year ended March 31, 2016
Net increase/ Cash and cash
Net cashow Net cashow Net cashow (decrease) Cash and cash
Particulars from Operating from Investing from Financing equivalents as equivalents as
in cash and at April 1, 2015
activities activities activities cash equivalents at March 31, 2016

Previous GAAP 6,491 4,615 (7,796) 3,310 103,715 107,025

Ind AS adjustments (Refer notes to (148) 121 - (26) - (26)
first time adoption below)
Ind AS - Net cashflows 6,343 4,737 (7,796) 3,284 103,714 106,999

83
Annual Report 2016 - 2017 STANDALONE

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Notes to the rst time adoption

1. Revenue
Along with sale of products, the Company generally provides free services/maintenance to its customers. Under previous GAAP, provision
was created for the expected cost of providing free services/ maintenance. Under Ind AS, instead of creating a provision towards cost of
free services/ maintenance, fair value of revenue relating to free service/ maintenance is deferred and recognised over the service period.

Further, under previous GAAP, revenue from repairs job was recognised upon completion of job. Under Ind AS, revenue from repairs jobs
is recognised under percentage of completion method.

2. Mark to market on forward contracts

The Company uses forward contracts to hedge its risks of net exposure associated with foreign currency fluctuations. Under previous
GAAP, the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing asset/liability, was
amortised as expense or income over the life of the contract. Under Ind AS, all transactions have been marked to market at period end.

3. Remeasurement of post-employment benet obligations

Under Ind AS, remeasurements of post employment benefits i.e. actuarial gains and losses and the return on plan assets, excluding
amounts included in the net interest expense on the net defined benefit liability, are recognised in other comprehensive income instead of
profit or loss. Under the previous GAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year.

4. Security deposits and Loans to employees

Under the previous GAAP, interest free lease security deposits and employee loans were recorded at their transaction value. Under Ind AS,
all financial instruments are required to be measured at their fair value on initial recognition. Accordingly, security deposits and employee
loans have been fair valued under Ind AS. Difference between transaction value and fair value has been recognised as prepaid expenses.
Prepaid expenses are amortised over the lease term or loan term and notional interest income is recognised on security deposits and
employee loans.

5. Trade Receivables
Unlike the previous GAAP, the Company has applied expected credit loss model for recognising allowance for doubtful debts, as per the
requirements of Ind AS 109.

6. Provisions
Under the previous GAAP, discounting of provisions was not allowed. Under Ind AS, provisions are measured at discounted amounts, if
impact of time value is material. Accordingly, non-current provisions for Product Upgration have been discounted to their present values.

7. Employee share based payments

The ultimate parent company has granted certain equity settled stock options to the senior employees of the Company, without any cross
charge. Under Ind AS, cost of these stock options are recognised over the vesting period, based on their grant date fair value, with
corresponding adjustment to equity.

8. Proposed dividend
Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial
statements were considered as adjusting events. Accordingly, provision for proposed dividends was recognised as liability. Under Ind AS,
such dividends are recognised when the same is approved by the shareholders in the general meeting.

9. Deferred taxes
Under Ind AS, deferred tax has been recognised on the adjustments made on the transition to Ind AS.

10. Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard
requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of Profit
and Loss as 'Other Comprehensive Income' includes remeasurements of defined benefit plans. The concept of other comprehensive
income did not exist under previous GAAP.

11. Retained earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

12. Bank Overdrafts

Under Ind AS, bank overdrafts payable on demand and which form an integral part of the cash management process are included in cash
and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, bank overdrafts were considered
as part of liabilities and movement in bank overdrafts were shown as part of Operating Activities.

84
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Standalone nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

52 Recent Accounting Pronouncements 

Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017,
notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, 'Share-based Payment'. These amendments are in
accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement of cash flows’
and IFRS 2, 'Share-based payment', respectively. The amendments are applicable to the company from April 1, 2017.

Amendment to Ind AS 7: ‘Statement of cash flows’:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in
liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a
reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the
disclosure requirement.

These ammendments are effective for annual periods beginning on or after April 1, 2017. Application of the ammendments will result in
additional disclosures provided by the Company.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards
and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity settled awards. Market-
based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance conditions and
service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the
terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled
share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment
requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The
cash payment to the tax authority is treated as if it was part of an equity settlement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

The notes are an integral part of the Standalone Financial Statements

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Sebi Joseph Suma P N
Chartered Accountants
Managing Director Director
Asha Ramanathan DIN 05221403 DIN 05350680
Partner
Membership No. 202660
Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Place: Mumbai
Date: August 17, 2017
Date: August 10, 2017

85
Annual Report 2016 - 2017
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF OTIS ELEVATOR COMPANY (INDIA) LIMITED
Report on the Consolidated Indian Accounting Standards
(Ind AS) Financial Statements
1. We have audited the accompanying consolidated Ind AS
financial statements of Otis Elevator Company (India)
Limited (“hereinafter referred to as the Holding Company”)
and its subsidiary (the Holding Company and its
subsidiary together referred to as “the Group”) and its
associate company; (refer Note 2[B] to the attached
consolidated financial statements), comprising of the
consolidated Balance Sheet as at March 31, 2017, the
consolidated Statement of Profit and Loss (including
Other Comprehensive Income), the consolidated Cash
Flow Statement and the Statement of Changes in Equity
for the year then ended and a summary of significant
accounting policies and other explanatory information
prepared based on the relevant records (hereinafter
referred to as “the Consolidated Ind AS Financial
Statements”).
Management’s Responsibility for the Consolidated Ind AS
Financial Statements
2. The Holding Company’s Board of Directors is responsible
for the preparation of these consolidated Ind AS financial
statements in terms of the requirements of the Companies
Act, 2013 (hereinafter referred to as “the Act”) that give a
true and fair view of the consolidated financial position,
consolidated financial performance, consolidated cash
flows and changes in equity of the Group including its
associate in accordance with accounting principles
generally accepted in India including the Indian
Accounting Standards specified in the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) under
Section 133 of the Act. The Holding Company’s Board of
Directors is also responsible for ensuring accuracy of
records including financial information considered
necessary for the preparation of consolidated Ind AS
financial statements. The respective Board of Directors of
the companies included in the Group and of its associate
are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for
safeguarding the assets of the Group and its associate
respectively and for preventing and detecting frauds and
other irregularities; the selection and application of
appropriate accounting policies; making judgements and
estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the financial statements that give a true
and fair view and are free from material misstatement,
whether due to fraud or error, which has been used for the
purpose of preparation of the consolidated Ind AS
financial statements by the Directors of the Holding
Company, as aforesaid.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on these
consolidated Ind AS financial statements based on our
audit. While conducting the audit, we have taken into
account the provisions of the Act and the Rules made
thereunder including the accounting standards and
86
CONSOLIDATED
matters which are required to be included in the audit
report.
4. We conducted our audit of the consolidated Ind AS
financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act and
other applicable authoritative pronouncements issued by
the Institute of Chartered Accountants of India. Those
Standards and pronouncements require that we comply
with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the
consolidated Ind AS financial statements are free from
material misstatement.
5. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
consolidated Ind AS financial statements. The procedures
selected depend on the auditors’ judgement, including the
assessment of the risks of material misstatement of the
consolidated Ind AS financial statements, whether due to
fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the
Holding Company’s preparation of the consolidated Ind
AS financial statements that give a true and fair view, in
order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the
Holding Company’s Board of Directors, as well as
evaluating the overall presentation of the consolidated Ind
AS financial statements.
6. We believe that the audit evidence obtained by us, other
than the unaudited financial information as certified by the
management and referred to in sub-paragraph 8 of the
Other Matters paragraph below, is sufficient and
appropriate to provide a basis for our audit opinion on the
consolidated Ind AS financial statements.
Opinion
7. In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
consolidated Ind AS financial statements give the
information required by the Act in the manner so required
and give a true and fair view in conformity with the
accounting principles generally accepted in India of the
consolidated state of affairs of the Group and its
associates as at March 31, 2017, and their consolidated
total comprehensive income (comprising of consolidated
profit/ loss and consolidated other comprehensive
income), their consolidated cash flows and consolidated
changes in equity for the year ended on that date.
Other Matters
8. The consolidated Ind AS financial statements also include
the Group’s share of total comprehensive income
(comprising of profit and other comprehensive income) of
Rs. 141 Lakhs for the year ended March 31, 2017 as
considered in the consolidated Ind AS financial
statements, in respect of an associate company, whose
financial information has not been audited by us. These
financial information are unaudited and have been
INDEPENDENT AUDITORS' REPORT
furnished to us by the Management, and our opinion on
the consolidated Ind AS financial statements insofar as it
relates to the amounts and disclosures included in respect
of this associate company and our report in terms of sub-
section (3) of Section 143 of the Act insofar as it relates to
the aforesaid associate, is based solely on such unaudited
financial information. In our opinion and according to the
information and explanations given to us by the
Management, these financial information are not material
to the Group.
9. The comparative financial information of the Company for
the year ended March 31, 2016 and the transition date
opening balance sheet as at April 1, 2015 included in
these consolidated Ind AS financial statements, are based
on the previously issued statutory financial statements for
the years ended March 31, 2016 and March 31, 2015,
prepared in accordance with the Companies (Accounting
Standards) Rules, 2006 (as amended) which were audited
by us, on which we expressed an unmodified opinion
dated August 10, 2016 and August 19, 2015, respectively.
The adjustments to those financial statements for the
differences in accounting principles adopted by the
Company on transition to the Ind AS have been audited by
us.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
10. As required by Section 143(3) of the Act, we report, to the
extent applicable, that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit
of the aforesaid consolidated Ind AS financial
statements.
(b) In our opinion, proper books of account as required
by law have been maintained by the Holding
Company and its subsidiary included in the Group,
including relevant records relating to preparation of
the aforesaid consolidated Ind AS financial
statements have been kept so far as it appears from
our examination of those books and records of the
Holding Company and its subsidiary.
The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss (including other
comprehensive income), Consolidated Cash Flow
Statement and the Consolidated Statement of
Changes in Equity dealt with by this Report are in
agreement with the relevant books of account
maintained by the Holding Company and its
subsidiary included in the Group, including relevant
records relating to the preparation of the
consolidated Ind AS financial statements.
(d) In our opinion, the aforesaid consolidated Ind AS
financial statements comply with the Indian
Accounting Standards specified under Section 133
of the Act.
(e) On the basis of the written representations received
from the directors of the Holding Company as on
March 31, 2017 taken on record by the Board of
Directors of the Holding Company and the reports of
the statutory auditors of its subsidiary company,
none of the directors of the Group companies, is
disqualified as on March 31, 2017 from being
appointed as a director in terms of Section 164 (2) of
the Act.
(f) With respect to the adequacy of the internal financial
controls over financial reporting of the Holding
Company and its subsidiary company and the
operating effectiveness of such controls, refer to our
separate Report in Annexure A.
(g) With respect to the other matters to be included in
the Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
(i) The consolidated Ind AS financial statements
disclose the impact, if any, of pending
litigations as at March 31, 2017 on the
consolidated financial position of the Group–
Refer Notes 20 and 46 to the consolidated Ind
AS financial statements.
(ii) Provision has been made in the consolidated
Ind AS financial statements, as required under
the applicable law or accounting standards, for
material foreseeable losses, if any, on long-
term contracts as at March 31, 2017– Refer (a)
Note 26 to the consolidated Ind AS financial
statements. The Company did not have long
term derivative contracts as at March 31,
2017.
(iii) There were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Holding Company, and
its subsidiary company, incorporated in India
during the year ended March 31, 2017.
(iv) The Group has provided requisite disclosures
in the financial statements as to holdings as
well as dealings in Specified Bank Notes
during the period from November 8, 2016 to
December 30, 2016. Based on audit
procedures and relying on the management
representation we report that the disclosures
are in accordance with books of account
maintained by the Holding Company, and its
subsidiary company, incorporated in India and
as produced to us by the Management – Refer
Note 14 to the consolidated Ind AS financial
statements.
For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/S-200012
Chartered Accountants
Asha Ramanathan
Partner
Membership Number: 202660
Mumbai
Date: August 17, 2017
87
Annual Report 2016 - 2017
ANNEXURE A TO INDEPENDENT AUDITORS’ REPORT
Referred to in paragraph 10(f) of the Independent Auditors’ Report of even date to the members of Otis Elevator
Company (India) Limited on the consolidated Ind AS nancial statements for the year ended March 31, 2017
Report on the Internal Financial Controls under Clause (i) of
Sub-section 3 of Section 143 of the Act
1. In conjunction with our audit of the consolidated Ind AS
financial statements of the Company as of and for the year
ended March 31, 2017, we have audited the internal
financial controls over financial reporting of Otis Elevator
Company (India)Limited (hereinafter referred to as “the
Holding Company”) and its subsidiary company as of that
date.
Management's Responsibility for Internal Financial
Controls
2. The respective Board of Directors of the Holding company
and its subsidiary company are responsible for
establishing and maintaining internal financial controls
based on “internal control over financial reporting criteria
established by the Company considering the essential
components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Repor ting issued by the Institute of Char tered
Accountants of India (ICAI)”. These responsibilities
include the design, implementation and maintenance of
adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of
its business, including adherence to the respective
company's policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information,
as required under the Act.
Auditor's Responsibility
3. Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the ICAI and the Standards on
Auditing under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal
financial controls, both applicable to an audit of internal
financial controls and both issued by the ICAI. Those
Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was
established and maintained and if such controls operated
effectively in all material respects.
4. Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system over financial reporting and their
operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an
understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and
operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the
auditor's judgement, including the assessment of the risks
of material misstatement of the financial statements,
whether due to fraud or error.
5. We believe that the audit evidence we have obtained is
88
CONSOLIDATED
sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls Over Financial
Reporting
6. A Company's internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company's internal financial
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being made
only in accordance with authorisations of management
and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorised acquisition, use, or disposition of the
company's assets that could have a material effect on the
financial statements.
Inherent Limitations of Internal Financial Controls Over
Financial Reporting
7. Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation of
the internal financial controls over financial reporting to
future periods are subject to the risk that the internal
financial control over financial reporting may become
inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may
deteriorate.
Opinion
8. In our opinion, the Holding Company and its subsidiary
company have, in all material respects, an adequate
internal financial controls system over financial reporting
and such internal financial controls over financial reporting
were operating effectively as at March 31, 2017, based on
the internal control over financial reporting criteria
established by the Company considering the essential
components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Repor ting issued by the Institute of Char tered
Accountants of India.
For Price Waterhouse & Co Bangalore LLP
Firm Registration Number: 007567S/S-200012
Chartered Accountants
Asha Ramanathan
Partner
Membership Number: 202660
Mumbai
Date: August 17, 2017
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Consolidated Balance Sheet as at March 31, 2017

As at As at As at
Notes in Rs. Lakhs in Rs. Lakhs in Rs. Lakhs
ASSETS
Non-current assets
Property, plant and equipment
4 6,333 7,154 7,747
Capital work-in-progress 4 26 - 285
Other intangible assets 4 1 2 -
Investment in an Associate 5 440 299 151
Financial assets
(i) Loans 6(a) 60,458 14,159 10,246
(ii) Trade receivables 13(a) 47 20 20
(iii) Other financial assets 7 903 755 859
Deferred tax assets (net) 8 12,416 11,380 11,025
Non-current tax assets (net) 9(a) 5,870 3,433 2,384
Other non-current assets 10 6,196 6,800 5,434
Total non current assets 92,691 44,002 38,151
Current assets
Inventories 11 10,519 8,358 8,027
Financial assets
(i) Loans 6(b) 12,639 135 261
(ii) Contract work-in-progress 12 932 1,282 784
(iii) Trade receivables 13(b) 32,792 32,463 28,226
(iv) Cash and cash equivalents 14 51,831 1,07,143 1,03,887
(v) Bank balances other than (iv) above 15 90 62 42
(vi) Other financial assets 16 3,729 2,675 2,418
Current Tax assets 9(b) 766 - -
Other current assets 17 1,499 1,526 1,438
Total current assets 1,14,797 1,53,643 1,45,083
TOTAL ASSETS 2,07,488 1,97,645 1,83,234
EQUITY AND LIABILITIES
EQUITY
Equity share capital 18 1,181 1,181 1,181
Other equity 19 93,394 92,535 87,456
Non-controlling interest - (15) -
Total equity 94,575 93,701 88,637
LIABILITIES
Non-current liabilities
Provisions 20 15,614 18,590 19,080
Employee Benefit Obligations 21(a) 40 89 957
Other non-current liabilities 22 1,027 970 929
Total non-current liabilities 16,681 19,649 20,966
Current liabilities
Financial liabilities
(i) Short term borrowings 23 100 100 113
(ii) Trade payables 24 20,797 17,048 13,597
(iii) Other financial liabilities 25 525 258 766
Provisions 26 17,005 12,620 10,026
Employee Benefit Obligations 21(b) 3,090 3,206 2,563
Liabilities for current tax (net) 27 - - 3,251
Other current liabilities 28 54,715 51,063 43,315
Total current liabilities 96,232 84,295 73,631
Total liabilities 1,12,913 1,03,944 94,597
TOTAL EQUITY AND LIABILITIES 2,07,488 1,97,645 1,83,234

The above Balance sheet should be read in conjunction with the accompanying Notes.
This is the Balance Sheet referred to in our report of even date.
For and on behalf of the Board of Directors
For Price Waterhouse & Co Bangalore LLP
Firm Registration No. 007567S/S-200012 Sebi Joseph Suma P N
Chartered Accountants Managing Director Director
DIN 05221403 DIN 05350680
Asha Ramanathan Mitesh Mittal Sanu Kapoor
Partner Chief Financial Officer Company Secretary
Membership No. 202660 Place: Mumbai
Place: Mumbai Date: August 10, 2017
Date: August 17, 2017

89
Annual Report 2016 - 2017 CONSOLIDATED
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Consolidated Statement of Prot and Loss for the year ended March 31, 2017
Note Year ended Year ended
March 31, 2017 March 31, 2016
in Rs. Lakhs in Rs. Lakhs
Revenue
Revenue from Operations 29 1,28,505 1,08,121
Other Income 30 11,190 10,092
Total income 1,39,695 1,18,213
Expenses
Cost of materials consumed 31 58,465 43,443
Changes in Inventories of work-in-progress 32 (126) 44
Excise duty 2,841 2,272
Employee Benefits Expenses 33 27,532 25,568
Interest Expense 34 72 92
Depreciation and amortization Expenses 35 1,280 1,376
Other Expenses 36 28,094 26,368
Total expenses 1,18,158 99,163
Prot before share of net prots of investments
accounted for using equity method and tax 21,537 19,050
Share of net profits of investments accounted for
using equity method and tax 142 149
Prot before Tax 21,679 19,199
Income tax expense 43
1. Current Tax 8,800 7,420
2. Deferred Tax (1,101) (270)
3. Adjustment of tax for earlier years (29) (777)
Prot for the year 14,009 12,826
Other comprehensive income
Items that will not be reclassified to Statement of Profit and Loss:
Actuarial gains/(loss) arising from remeasurements of
post-employment benefit obligations 196 (243)
Deferred tax income/ (expense) related to these items (66) 85
Share of Other comprehensive income of associate (1) (1)
accounted using equity method
Other comprehensive income for the year, net of tax 129 (159)
Total comprehensive income for the year 14,138 12,667
Prot is attributable to:
Owners of Otis Elevator Company (India) Limited 14,051 12,841
Non-controlling interests (42) (15)
Other comprehensive income attributable to
Owners of Otis Elevator Company (India) Limited 128 (159)
Non-controlling interests 1 -
Total comprehensive income attributable to :
Owners of Otis Elevator Company (India) Limited 14,179 12,682
Non-controlling interests (41) (15)

Earnings per Share - (Basic and Diluted) [Refer Notes 37]

(Rs. per Equity Share of Rs. 10 each) 118.64 108.62
[Nominal value of share Rs. 10 each] (Previous Year - Rs. 10 each)
The above consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.
This is the Statement of Profit and Loss referred to in our report of even date. For and on behalf of the Board of Directors
For Price Waterhouse & Co Bangalore LLP
Firm Registration No. 007567S/S-200012 Sebi Joseph Suma P N
Chartered Accountants Managing Director Director
Asha Ramanathan DIN 05221403 DIN 05350680
Partner Mitesh Mittal Sanu Kapoor
Membership No : 202660 Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date: August 17, 2017 Date: August 10, 2017

90
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Consolidated Statement of cash ows for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars For the year ended For the year ended

March 31,2017 March 31,2016

Cash ow from operating activities:

Profit Before Tax 21,679 19,199
Adjustments for :
Depreciation and Amortisation expense 1,280 1,376
Provision for trade receivables and other financial assets 488 2,053
Provision for non-financial assets 111 27
Unrealised (Gain) / Loss on Forex (net) 90 102
Bad trade receivables and other financial assets written off 448 277
Interest expense on delayed payments of taxes - 52
Interest - others 9 6
Unwinding of Interest on Product Upgradation Expense Provision 47 21
Interest on :
- Deposits with Bank (6,836) (7,977)
- Income Tax Refund (189) (283)
- Loans to related parties (2,755) (1,379)
- Others (14) (10)
Profit on sale / disposal of property, plant and equipment (Net) (50) (33)
Provision for Product Upgradation 444 2,112
Provision for contingency / write back of provision for contingency (Net) (898) 147

Provision for Loss on contracts 11 4

Unwinding of Interest on deposits/ retention money/ employee loans (103) (62)
Share based payments to Employees 389 214
Share of net profits of investments accounted for using equity method (142) (149)

Operating Prot before working capital changes 14,009 15,697

Change in operating assets and liabilities

(Increase) / Decrease in Trade receiveables - non-current (27) -
(Increase) / Decrease in Trade receiveables - current (1,264) (6,567)
(Increase) / Decrease in Inventories (2,161) (331)
Increase in Trade Payables 3,653 3,339
(Increase) / Decrease in other current financial assets 331 253
(Increase) / Decrease in other non-current assets 516 (1,596)
(Increase) / Decrease in other current assets 27 (87)
Increase/ (Decrease) in long term provisions (3,023) (511)
Increase/ (Decrease) in short term provisions 4,828 331
Increase / (Decrease) in employee benefit obligations (non-current) (49) (867)
Increase / (Decrease) in employee benefit obligations (current) 80 400
Increase / (Decrease) in other current financial liabilities 161 (435)
Increase / (Decrease) in non-current liabilities 57 41
(Increase) / Decrease in other non current financial assets (148) 104
Increase / (Decrease) in other current liabilities 3,652 7,748
(Increase)/ Decrease in Contract work-in-progress 350 (497)
(Increase)/ Decrease in Other bank balances (44) (20)

Operating Prot after Working Capital changes 20,948 17,003

Taxes paid (Net) (11,785) (10,711)
Net cash generated from operating activities (A) 9,163 6,291

91
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Consolidated Statement of cash ows for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars For the year ended For the year ended

March 31,2017 March 31,2016

Cash ow from investing activities

Purchase of Fixed Assets (418) (466)
Proceeds from Sale of Fixed Assets 94 62
Loans Given (Net of repayment) (58,803) (3,787)
Interest received 8,324 8,918

Net Cash (Utilised for) / Generated from Investing Activities (B) (50,803) 4,726

Cash ow from nancing activities

Interest Paid on short term borrowings (13) (11)
Dividend paid (11,201) (6,474)
Dividend Distribution Tax paid (2,284) (1,322)
Repayment of Borrowings - (13)
Transactions with Non-controlling interest [Refer Note 50 (c )] (150)

Net (cash utilised) for Financing Activities ( C ) (13,648) (7,820)

Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C) (55,288) 3,196

Cash and Cash Equivalents at the Beginning of the Year 1,07,084 1,03,887
Cash and Cash Equivalents at the End of the Year 51,796 1,07,084

Cash and Cash Equivalents comprise :

Cash on hand 1 2
Cheques on hand 86 404
Bank Balances:
- In Current accounts 2,840 678
- In Demand Deposits 48,904 1,06,059
Temporary overdrat with Banks (34) (59)
51,796 1,07,084

Notes:
1. The above Cash Flow Statement has been prepared under "Indirect Method" set out in Accounting Standard (Ind AS) 7 on the Statement of
Cash Flow as notified under Companies (Accounts) Rules, 2015.
2.The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this Note. (Refer Note 53).
3.The above Statement of Cash Flows should be read in conjunction with the accompanying Notes.

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

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants
Sebi Joseph Suma P N
Managing Director Director
Asha Ramanathan
DIN 05221403 DIN 05350680
Partner
Membership No : 202660 Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date: August 17, 2017 Date: August 10, 2017

92
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Consolidated Statement of changes in equity for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
A. Equity Share Capital (Refer Note 18)

Particulars Amount
Balance as at April 1, 2015 1,181
Changes in equity share capital -
Balance as at March 31, 2016 1,181
Changes in equity share capital -
Balance as at March 31, 2017 1,181

B.Other equity
Reserves and Surplus Other Equity
Equity
contribution Total Non-
Particulars from Other controlling Total
Capital Retained Ultimate equity interests
redemption General Parent -
reserve earnings
reserve Share based
Balance as at April 1, 2015 73 1,759 85,502 122 87,456 87,456
Profit/(loss) for the year - - 12,841 - 12,841 (15) 12,826
Other comprehensive income - - (159) - (159) - (159)
Total comprehensive income
for the period - - 12,682 - 12,682 (15) 12,667
Dividends paid - - (6,495) - (6,495) - (6,495)
Dividend distribution tax - - (1,322) (1,322) - (1,322)

Addition towards share based payments - - - 214 214 - 214

Balance as at March 31, 2016 73 1,759 90,367 336 92,535 (15) 92,520

Reserves and Surplus Other Equity

Equity
contribution Non-
Particulars from Total controlling Total
Capital Retained Ultimate
redemption General interests
reserve earnings Parent -
reserve Share based
Balance as at April 1, 2016 73 1,759 90,367 336 92,535 (15) 92,520
Profit/(loss) for the year - - 14,051 - 14,051 (42) 14,009
Other comprehensive income - - 126 - 126 1 127
Total comprehensive income
for the period - - 14,177 - 14,177 (41) 14,139
Transactions with non controlling
interests (Refer Note 50 (c )) - - (207) - (207) 56 (151)
Dividends paid - - (11,218) - (11,218) - (11,218)
Dividend distribution tax - - (2,284) - (2,284) - (2,284)
Addition towards share based payments - - - 389 387 - 389
Balance as at March 31, 2017 73 1,759 90,835 725 93,392 - 93,392
The above Consolidated Statement of changes in equity should be read in conjunction with the accompanying Notes.
As per our report of even date
For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants
Sebi Joseph Suma P N
Asha Ramanathan Managing Director Director
Partner DIN 05221403 DIN 05350680
Membership No : 202660
Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Date: August 17, 2017 Place: Mumbai
Date: August 10, 2017
93
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

1 Background of the Company

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

2 Basis of Preparation and Principles of Consolidation :

(A) Basis of Preparation

(a) Statement of compliance

The consolidated financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant
provisions of the Act. The financial statements up to year ended March 31, 2016 were prepared in accordance with the accounting
standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These financial statements are the first financial statements of the group under Ind AS. Refer Note 53 for an explanation of how
the transition from previously applicable Indian GAAP (hereinafter referred to as 'previous GAAP') to Ind AS has affected the
group’s financial position, financial performance and cash flows.

(b) Historical cost convention

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

(c) Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in any future periods affected.

"This Note provides an overview of the areas that involved higher degree of judgment or complexity, and of items which are more
likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Detailed information about each of these estimates and judgments is included in relevant Notes together with information about
the basis of calculation for each affected line item in the financial statements.The areas involving critical estimates or judgments
are:"
(i) Estimation of defined benefit obligations ((Refer Notes 33, 21(a) and 21(b))
(ii) Estimation of current tax expense and receivables/payables (Refer Notes 9(a), 9(b), 27 and 43)
(iv) Impairment of trade and other receivables (Refer Note 6(a), 7, 10, 16 and 17)
(v) Recognition and measurement of provisions and contingencies (Refer Notes 20 and 26)

(d) Current vs non-current classication

Operating cycle
All assets and liabilities have been classified as current or non-current as per the group’s normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013. Based on the nature of business and the time between the supply of
products/rendering of services and their realisation in cash and cash equivalents, the group has ascertained its operating cycle
as 12 months for the purpose of current-non current classification of assets and liabilities.

(B) Principles of Consolidation and equity accounting :

(a) Subsidiary
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the
group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is
transferred to the group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group.
"The group combines the financial statements of the parent and its subsidiaries line by line adding together like items of assets,
liabilities, equity, income and expenses. Intercompany transactions, balances and unrealised gains on transactions between
group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group."

94
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit and
loss, consolidated statement of changes in equity and balance sheet respectively.

(b) Associates
Associates are all entities over which the group has significant influence but not control or joint control.This is generally the case
where the group holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity
method of accounting (see (c) below), after initially being recognised at cost.

(c) Equity Method

Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the
group's share of the post-acquisition profits or losses of the investee in profit and loss, and the group's share of other
comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and
joint ventures are recognised as a reduction in the carrying amount of the investment."
When the group's share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any
other unsecured long-term receivables, the group does not recognise further losses, unless it has incurred obligations or made
payments on behalf of the other entity.
Unrealised gains on transactions between the group and its associates and joint ventures are eliminated to the extent of the
group's interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to
ensure consistency with the policies adopted by the group.
The carrying amount of equity accounted investments are tested for impairment in accordance with the policy described in Note
3(h) below.
(d) Change in ownership interests
The group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and
non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment
to non-controlling interests and any consideration paid or received is recognised within equity.
When the group ceases to consolidate or equity account for an investment because of a loss of control, or significant influence,
any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss.
This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an
associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in
respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognised in other comprehensive income are reclassified to profit or loss.
"If the ownership interest in an associate is reduced but joint control or significant influence is retained, only a proportionate share
of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where appropriate."

3 Signicant accounting policies

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

(a) Foreign currency translations

(i) Functional and presentation currency
Items included in the financial statements of the group are measured using the currency of the primary economic environment in
which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Indian rupee (Rs.),
which is group’s functional and presentation currency.

(ii) Transactions and balances

Transactions in foreign currencies are translated to the functional currency of the group at exchange rates at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the
functional currency at the exchange rate prevailing on that date. Foreign exchange gains and losses resulting from the settlement
of such transactions and from the translation of monetary assets and liabilities denminated in foreign currecies at year end
exhange rate are generally recongised in profit or loss.Non-monetary items that are measured in terms of historical cost in a
foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at
fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or
loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on
the change in fair value of the item.

(b) Financial instruments

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

95
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(i) Financial assets

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

Recognition, measurement and classication

A financial asset is recognised in the balance sheet only when the group becomes party to the contractual provisions to the
instrument. All financial assets are measured initially at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expensed to profit or loss.
The group classifies its financial assets into a) financial assets measured at amortised cost, and b) financial assets measured at
fair value (either through other comprehensive income or through profit or loss). Management determines the classification of its
financial assets at the time of initial recognition or, where applicable, at the time of reclassification. The classification depends on
the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

(1) Financial assets measured at amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost. A gain or loss on a financial asset that is subsequently measured at amortised cost and
is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income
from these financial assets is included in finance income using the effective interest rate method."
A financial asset is classified at amortised costs if it is held within a business model whose objective is to a) hold financial asset in
order to collect contractual cash flows and b) the contractual terms of the financial asset give rise on specific dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using effective interest rate
method (EIR). Amortised cost is arrive at after taking into consideration any discount or fees or costs that are an integral part of
the EIR. The amortisation of such interests forms part of finance income in the statement of profit and loss. Any impairment loss
arising from these assets are recognised in the Statement of Profit and Loss.

(2) Financial assets measured at fair value through other comprehensive income (FVTOCI)
A financial asset is classified at fair value through other comprehensive income if it is held within a business model whose
objective is to a) hold financial asset in order to collect contractual cash flows and for selling the financial assets and b) the
contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding. Movements in the carrying amount are taken through OCI, except for the recognition of
impairment of gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to
profit or loss. Interest income from these financial assets is included in other income using the effective interest rate method.
(3) Financial assets measured at fair value through prot and loss (FVTPL)
Any asset which do not meet the criteria for classification as at amortised cost or as FVTOCI, is classified as FVTPL. Financial
assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in the Statement of Profit
and Loss.
(ii) Financial liabilities
A financial liability is (i) a contractual obligation to deliver cash or another financial asset to another entity; or to exchange financial
instruments under potentially unfavorable conditions; (ii) or a contract that will or may be settled in the entity's own equity
instruments and is a non-derivative for which the entity is or may be obliged to deliver a variable number of its own equity
instruments; or a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of the entity's own equity instruments.

Recognition, measurement and classication

A financial liability is recognised in the balance sheet only when the group becomes party to the contractual provisions to the
instrument. Financial liabilities are classified as either held at a) fair value through profit or loss, or b) at amortised cost.
Management determines the classification of its financial liabilities at the time of initial recognition or, where applicable, at the
time of reclassification.

After initial measurement, such financial liabilities are subsequently measured at amortised cost using the EIR method. Financial
liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the
Statement of Profit and Loss.

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

96
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(iv) Impairment of nancial assets

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

(v) Derivatives

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

(vi) Offsetting nancial instruments

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

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

(d) Revenue recognition

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

(e) Other Income

Interest income from financial asset is recognised using the effective interest rate method. The effective interest rate is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount
of a financial asset. When calculating the effective interest rate, the group estimates the expected cash flows by considering all
the contractual terms of the financial asset (for example, prepayment, extension, call and similar options) but does not consider

97
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

the expected credit losses.

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

Particulars Useful lives

Buildings 30 years
Plant & equipment 15 years
Furniture & fixtures 10 years
Electrical installations 10 years
Computers 3 years
Vehicles 8 - 10 years
Office equipments 5 years

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

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

(g) Intangible assets

Intangible assets that are acquired by the group and have finite useful lives are measured at cost less accumulated amortisation
and accumulated impairment losses.
Softwares purchased are amortised over a period of 3 to 5 years on straight line basis.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net
disposal proceeds and the carrying amount of the asset and recognised as income or expense in the Statement of Profit and
Loss.

Research and Development:

Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss. Development costs of products are
also charged to the Statement of Profit and Loss unless a product’s technical feasibility and other criteria set out in Ind AS 38 –
‘Intangible assets’ have been established, in which case such expenditure is capitalised.

Transition to Ind AS
On transition to Ind AS, the group has elected to continue with the carrying value of all of intangible assets recognised as at April
1, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

98
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(h) Impairment of non-nancial assets :

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

(I) Leases
Operating leaseAs a Lessee, lease in which significant portion of risks and rewards of ownership are not transferred to the group
are classified as operating lease.Payments made under operating leases are charged to Statement of Profit and Loss on a
straight-line basis over the lease term unless the payments are structured to increase in line with expected general inflation to
compensate for the lessor’s expected inflationary cost increases.

(j) Employee benets

i) Short term obligation
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to
be paid if the group has a present legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably. Termination benefits are recognised as an expense as and when incurred.

ii) Other long-term employee benet obligations

Compensated Absences
The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in
which the employees render the related service. They are therefore measured as the present value of expected future payments
to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit
method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to
the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial
assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

iii) Post employment obligations

a) Dened contribution plans
A defined contribution plan is a post-employment plan under which an entity pays fixed contributions and will have no legal or
constructive obligation to pay further amounts.The group contributes to Superannuation Fund, Employee’s State Insurance Fund
and Employees Deposit Linked Insurance scheme, and has no further obligation beyond making its contribution. The group’s
contributions to the above funds are charged to the Statement of Profit and Loss.

b) Dened benet plans

Provident Fund
Contributions to Provident Fund and Employee’s Pension Scheme 1995 are made to Trust administered by the group. The group's
liability is actuarially determined (using the Project Unit Credit method) at the end of the year and any shortfall in the fund size
maintained by the Trust set up by the group, is additionally provided for.

Gratuity
The group provide for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the
Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment of vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the respective employees' salary and the tenure of
employment. The group’s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year.
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated
annually by actuary using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in
the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of
changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

99
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

iv) Termination Benets

Termination benefits in the nature of voluntary separation plan are recognised in the Statement of Profit and Loss as and when
incurred.

v) Share based payments

Share based compensation benefits are provided to employees by the Ultimate Parent group without any cross charge.The fair
value of of options granted is recognised as an employee benefit expenses with a corresponding increase in equity as
contribution from the parent. The total expense is recognised over the vesting period, which is the period over which all of the
specified vesting conditions are to be satisfied. At the end of each period, the group revises its estimates of the number of options
that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of revision to original
estimates, if any, in the profit or loss, with a corresponding adjustment to equity.

(k) Income tax

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates items
recognised directly in equity or in other comprehensive income.

Current tax
The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses, if any.The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the country where the group operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle
on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to
apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The carrying amount of deferred tax assets are reviewed at the end of each reporting period and are recognised only if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in
subsidiaries, branches and associates and interest in joint arrangements where the group is able to control the timing of the
reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.Deferred tax
assets are not recognised for temporary differences between the carrying amount and tax bases of investments in subsidiaries,
branches and associates and interest in joint arrangements where it is not probable that the differences will reverse in the
foreseeable future and taxable profit will not be available against which the temporary difference can be utilised
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority.
Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.

(l) Provisions and contingent liabilities

Provisions are recognised when the group has a present legal or contructive obligation as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
Provisions are measured at the present value, wherever group can estimate the time of settlement, of management’s best
estimate of the expenditure required to settle the present obligation at the end of the reporting period. The increase in the
provisions due to passage of time is recognised as interest expense.
"Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurance or non-occurance of one or more uncertain future events not wholly with in the control of the
group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount can not be made. Wherer the likelihood of outflow of resources is remote, no
provision or disclosure as specified in Ind AS -37 - ""Provision, contigent liablities and contigent assets"" is made."

(m) Segment reporting

The Chief Operational Decision Maker (CODM) monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based

100
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated Financial Statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments are reported in a
manner consistent with the internal reporting provided to the CODM.

(n) Earnings per share

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

(o) Cash and cash equivalents

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

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

(q) Rounding of amounts

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

101
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

4. Property, Plant and Equipment

[Refer Notes 3(f) and (h)]

Gross Block Depreciation Net Block

Description As at As at As at For the As at As at
March 31, 2016 Additions Deductions March 31, 2017 March 31, 2016 year Deductions March 31, 2017 March 31, 2017
Freehold land 250 - - 250 - - - - 250
Buildings 4,394 76 25 4,445 429 403 5 828 3,616
Leasehold improvements 448 13 1 460 132 228 1 359 102
Plant and equipment 2,670 313 * 2,983 549 467 * 1,016 1,967
Furniture and fixtures 145 31 - 175 49 38 - 87 89
Electrical installations 297 - - 297 76 56 - 132 165
Computers 90 8 17 81 35 17 3 49 32
Vehicles 48 5 16 37 12 9 7 14 22
Office equipments 182 57 1 239 87 62 * 149 91
Total 8,523 503 60 8,966 1,369 1,280 16 2,633 6,333
Capital work-in-progress - 528 502 26 - - - - 26

Gross Block Depreciation Net Block

Description As at As at As at For the As at As at
April 1, 2015 Additions Deductions March 31, 2016 April 1, 2015 year Deductions March 31, 2016 March 31, 2016
Freehold land 250 - - 250 - - - - 250
Buildings 4,252 149 7 4,393 - 429 - 429 3,964
Leasehold improvements 218 230 - 449 - 132 - 132 317
Plant and equipment 2,368 313 11 2,670 - 551 2 549 2,121
Furniture and fixtures 109 37 1 144 - 49 * 49 95
Electrical installations 297 - - 297 - 76 - 76 220
Computers 61 33 4 90 - 35 * 35 55
Vehicles 44 13 9 48 - 15 3 12 36
Office equipments 149 37 4 182 - 89 2 87 95
Total 7,747 811 36 8,522 1,376 7 1,369 7,153
Capital work-in-progress 285 524 809 - - - - - -

Other Intangible assets

Intangible assets - [Refer Notes 3(g) and (h)]
Gross Block Amortisation Net Block
Description As at As at As at For the As at As at
April 1, 2016 Additions Deductions March 31, 2017 April 1, 2016 year Deductions March 31, 2016 March 31, 2017
Software 2 * - 2 * 1 - 1 1
Total 2 * - 2 * 1 - 1 1
Gross Block Amortisation Net Block
Description As at As at As at For the As at As at
April 1, 2015 Additions Deductions March 31, 2016 April 1, 2015 year Deductions March 31, 2016 March 31, 2016
Software - 2 - 2 * 1 - * 1
Total - 2 - 2 * 1 - * 1
Note:
The Company has availed the deemed cost exemption in relation to the property plant and equipment and intangible assets on the date of transition and hence
the net block carrying amount has been considered as the gross block carrying amount on that date. Refer Note below for the gross block value and the
accumulated depreciation / amortisation on April 1, 2015 under the previous GAAP.
Freehold Leasehold Plant and Ofce
DESCRIPTION land Buildings improvements equipment Furniture and Electrical Computers Vehicles equipments Total DESCRIPTION Goodwill Trademark Software Total
xtures installations
Gross Block 250 5,670 1,049 5,896 310 566 1,052 227 396 15,415 Gross Block 418 175 859 1,451
Accumulated Accumulated
Depreciation - 1,418 831 3,528 202 269 991 182 247 7,667 Amortisation 418 175 859 1,451
Net Block - - - -
Net Block 250 4,252 219 2,368 108 297 61 44 149 7,748

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

102
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

5 Investment in an Associate : As at As at As at
[Refer Note 3 (h)] March 31, 2017 March 31, 2016 April 1, 2015

Associate Company:
288,550 Equity Shares (March 31, 2016: 288,550, April 1, 440 299 151
2015: 288,550) of Rs. 10 each fully paid 440 299 151
up in Trio Elevators Company (India) Limited
As at As at As at
TOTAL
March 31, 2017 March 31, 2016 April 1, 2015
6 (a) Loans - Non-Current

Unsecured, considered good:

Loans to related parties
UTC Fire and Security India Limited 15,430 9,980 7,680
Chubb Alba Control Systems Limited 42,053 965 850
Carrier Race Technologies Private Limited
2,930 2,930 1,400
United Technologies Corporation India Private Limited
- 235 282
Loans to employees 45 49 34
60,458 14,159 10,246

As at As at As at
6 (b) Loans - Current March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good:
Loans to related parties
Chubb Alba Control Systems Limited 12,524 - -

Loans to employees
115 135 261
Unsecured, considered doubtful:
Loans to employees - 8 19
Less: Allowance for doubtful loans - (8) (19)
- - -

12,639 135 261

Details of Loans to Related Parties

Particulars As at Purpose Rate of Repayable on or
March 31, 2017 interest % before
Amounts
UTC Fire and Security India Limited # 15,430 Project financing and 12.50 June 15, 2017
working capital
15,430

Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 8, 2017
53,612 Project financing and 11.25 Aug 22, 2017
working capital
54,577

Carrier Race Technologies Private Limited # 2,930 Working capital 12.50 May 24, 2017
2,930

103
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
Details of Loans to Related Parties
Particulars As at
Rate of Repayable on or
March 31, 2016 Purpose interest % before
Amounts
UTC Fire and Security India Limited # 150 Project financing and 12.50 April 04, 2016
working capital
100 Project financing and 12.50 May 25, 2016
working capital
300 Project financing and 12.50 June 14, 2016
working capital
9,430 Project financing and 12.50 June 20, 2016
working capital
9,980

Chubb Alba Control Systems Limited # 965 Working capital 12.50 May 13, 2016
965
Carrier Race Technologies Private Limited # 50 Working capital 12.50 April 25, 2016
2,880 Working capital 12.50 May 29, 2016
2,930
United Technologies Corporation 235 Fund the construction 11.00 September 30,
India Private Limited of an approved 2020
training center project.
235

Details of Loans to Related Parties

Particulars As at
Purpose Rate of Repayable on or
April 1, 2015 interest % before
Amounts
UTC Fire and Security India Limited # 5,980 Project financing and 10.90 June 26, 2015
working capital
1,200 Project financing and 10.50 August 13, 2015
working capital
300 Project financing and 10.15 August 31, 2015
working capital
200 Project financing and 10.15 September 12,
working capital 2015
7,680

Chubb Alba Control Systems Limited # 100 Working capital 10.85 May 19, 2015
250 Working capital 10.00 July 13, 2015
250 Working capital 10.15 September 2, 2015
250 Working capital September 23,
10.15 2015
850
Carrier Race Technologies Private Limited # 1,200 Working capital 10.25 June 04, 2015
200 Working capital 10.25 August 18, 2015
1,400

United Technologies Corporation 282 Fund the construction 11.00 September 30,
India Private Limited of an approved
2020
training center project.
282
# The loans given to these parties are renewable with mutual consent. The group has classified these loan amounts as 'Non-
current' in Note 6 (a), considering the intention to recover these loan amounts beyond a period of 12 months from the balance
sheet date.

104
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

7 Other nancial assets (Non current) As at As at As at

March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good
Receivable from related parties:
Trio Elevator Company (India) Limited 14 14 -

Security deposits
884 741 858
Long-term Deposits with bank with maturity period more than
12 months (Held as lien by bank against bank guarantees) 5 * 1
Security deposits
Less: Allowance for doubtful deposits (Refer Note 42) 110 194 53
(110) (194) (53)
* Amounts are below rounding off norms
adopted by the group - - -
903 755 859

8 Deferred Tax assets (Net) As at As at As at

[Refer Notes 3 (k) and 43D] March 31, 2017 March 31, 2016 April 1, 2015
Deferred Tax Assets
Provision for doubtful debts/advances 2,419 2,723 2,206
Provision for Compensated Absences and Gratuity 1,060 831 1,177
Voluntary Separation Plan 168 262 369
Provision for Product Upgradation 708 810 551
Disallowances under Section 40(a) of the Income Tax Act, 1961 135 135 133
Depreciation / Amortisation 149 64 -
Provision for Contingency 5,108 6,048 6,429
Provision for forseeable losses on contracts 2,667 - -
Deferred Revenue 62 538 207
Gross Deferred Tax Assets 12,476 11,411 11,072
Deferred Tax Liabilities
Depreciation/ Amortisation - - 46
Dividend Distribution Tax on undistributed profits of an Associate 60 31 1

Gross Deferred Tax Liabilities 60 31 47

Net Deferred Tax Assets (net) 12,416 11,380 11,025

9(a) Non-current tax assets (Net) As at As at As at

[Refer Note 3 (k)] March 31, 2017 March 31, 2016 April 1, 2015

Advance income tax 56,632 48,683 52,594

Provision for tax (50,762) (45,250) (50,210)
Advance income tax (Net of provision for income tax) 5,870 3,433 2,384

Opening balances 3,433 2,384 -

Add: Taxes paid (net of refund) 11,976 9,695 -
Less: Current tax provision for the year 8,773 6,695
Add: Reclassified from long term provision - 1,951
Less: Reclassified to current tax assets 766 -
Closing balance 5,870 3,433
2,384

105
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

9(b) Current tax assets (Net) As at As at As at

[Refer Note 3 (k)] March 31, 2017 March 31, 2016 April 1, 2015

Advance income tax 5,170 - -

Provision for tax (4,404) - -
Advance income tax (Net of provision for income tax) 766 - -

Opening balances - - -
Add: reclassified to current tax assets 766 - -
Closing balance
766 - -

10 Other non-current assets As at As at As at

March 31, 2017 March 31, 2016 April 1, 2015
Unsecured, considered good

Capital Advance 26 1 204

Prepaid Expenses 97 127 102
Balances with Government Authorities 6,059 6,654 5,110
Advance to employees 15 18 18

Unsecured, considered doubrful

Balances with Government Authorities 1,104 993 966
Less: Provision for doubtful receivables (1,104) (993) (966)
- - -

6,197 6,800 5,434

11 Inventories As at As at As at
[Refer Note 3(c)] March 31, 2017 March 31, 2016 April 1, 2015

Raw materials:
Components and Spares [including Components In-transit
Rs. 4,255 lakhs (March 31, 2016: Rs. 10,246 8,211 7,836
2,200 lakhs, April 1, 2015: Rs. 1,341 lakhs)]
Work-in-progress for components for Elevator Constructions 273 147 191

10,519 8,358 8,027

During the year, the group has written down inventories by Rs. 42 lakhs (Previous Year Rs. 557 lakhs) in respect of provision for slow
moving and obsolete items. These are recognised as an expenseduring the year and included in ‘Changes in inventories of work-in-
progress’ in Statement of Profit and Loss.

Details of Inventory
Following the industry pattern, the group considers an Elevator as produced when total components comprising complete elevators are
dispatched from the Shipping department. Accordingly, there is noclosing stock of goods produced as of March 31, 2017, March 31,
2016 and April 1, 2015.

12 Contract Work-In-Progress As at As at As at
[Refer Note 29] March 31, 2017 March 31, 2016 April 1, 2015

Progress Work 16,306 12,315 12,904

Less: Aggregate amount of Progress Billings 15,374 11,033 12,120
932 1,282 784

106
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

13 (a) Trade receivables - non current As at As at As at

(Unsecured) March 31, 2017 March 31, 2016 April 1, 2015

Considered Good 47 20 20

Total Trade receivables 47 20 20

13 (b) Trade receivables - current (Refer Note 44) As at As at As at

(Unsecured) March 31, 2017 March 31, 2016 April 1, 2015

Considered Good * 32,792 32,463 28,226

Considered Doubtful 5,328 6,258 5,120
38,120 38,721 33,346
Less: Allowance for doubtful debts (5,328) (6,258) (5,120)
Total Trade receivables 32,792 32,463 28,226

* This includes amount receivable from related parties Rs. 39 lakhs (March 31, 2016 : Rs. Nil , April 1, 2015 : Rs. Nil)
The group’s exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in Note 42.

14 Cash and Cash equivalents As at As at As at

March 31, 2017 March 31, 2016 April 1, 2015
Balances with banks
-In Current accounts 2,840 678 442
-Deposits with original maturity of less than three months 48,904 1,06,059 1,02,827

Cheques on hand 86 404 615

Cash on hand 1 2 3
51,831 1,07,143 1,03,887

Disclosure On Specied Bank Notes

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

Particular Specied Bank Notes* Other notes Total

Closing cash on hand as on November 8, 2016 2 1 3
Add : Receipts for permitted transactions - 1 1
Less : Paid for permitted transactions - 1 1
Less : Deposited in bank accounts 2 - 2
Closing cash on hand as on December 30, 2016 - 1 1

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

15 Bank balances other than above As at As at As at

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

Unpaid dividend 48 31 11
Deposit with banks [towards security deposit
against sales tax and other matters] 42 31 31
90 62 42

107
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

16 Other nancial assets As at As at As at

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

Receivables from related parties (Refer Note 44)

Interest accrued on loans 2,468 946 591
Other receivables 588 410 712

Other receivables - Unsecured considered good

Deposits - Others 427 805 574
Interest accrued on fixed deposits 135 368 261
Interest accrued on Employee loans - 8 21
Other receivables 107 134 259
Derivative not designated as hedges
- Foreign exchange forward contracts 4 4 -

Unsecured, considered doubtful

Security deposits - Others 502 420 355
Less: Allowance for doubtful deposits (502) (420) (355)
- - -

3,729 2,675 2,418

As at As at As at
17 Other current assets March 31, 2017 March 31, 2016 April 1, 2015

Prepaid Expenses 316 268 338

Advance to employees 2 5 3

Advance to suppliers 654 605 858

Less: Allowance for doubtful advances (17) (29) (33)
637 576 825
Balances with Government Authorities 544 676 272
1,499 1,525 1,438

18 EQUITY SHARE CAPITAL As at As at As at

March 31, 2017 March 31, 2016 April 1, 2015
Authorised
15,000,000 equity shares of Rs. 10 each 1500 1,500 1,500

Issued, subscribed and paid-up

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

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

As at March 31, 2017 As at March 31, 2016

Number of shares Amount Number of shares Amount
Balance as at the beginning of the year 1,18,08,222 1,181 1,18,08,222 1,181
Additions/ deletions during the year - - - -
Balance as at the end of the year 1,18,08,222 1,181 1,18,08,222 1,181

108
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(b) The Group has one class of equity shares having a par value of Rs. 10 per equity share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting, except in case of interim Dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(c) Shares held by the holding Relationship As at As at As at

company of the company March 31, 2017 March 31, 2016 April 1, 2015
Holding Company
11,599,819 equity shares
(Previous Year: 11,599,819 equity shares) 1,160 1,160 1,160
are held by United Technologies
South Asia Pacific Pte. Ltd. 1,160 1,160 1,160

The ultimate holding company is United

Technologies Corporation Inc., USA.

(d) List of shareholders holding more than 5% shares as at the Balance Sheet date:
As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Name of the Number of
Shareholders shares % holding Number of shares % holding Number of shares % holding
United Technologies
1,15,99,819 98.24% 1,15,99,819 98.24% 1,15,99,819 98.24%
South Asia Pacific Pte. Ltd.

19 OTHER EQUITY As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Capital redemption reserve 73 73 73

General reserve 1,759 1,759 1,759
Retained earnings 90,837 90,367 85,502
ESOP reserve - contributon from parent 725 336 122
93,394 92,535 87,456

a. Capital redemption reserve

Balance as at the beginning of the year 73 73

Balance as at the end of the year 73 73

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

Balance as at the end of the year 1,759 1,759

c. Retained earnings
Balance as at the beginning of the year 90,367 85,502
Add: Profit for the year 14,051 12,841
Items of other comprehensive income recognised directly in retained earnings
- Re-measurements of post employment benefit obligation (net of tax) 128 (159)
Less : Appropriations
- Dividend 11,218 6,495
- Dividend distribution tax 2,284 1,322

Transactions with Non-Controlling Interest (207) -

Balance as at the end of the year 90,837 90,367

109
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

d. ESOP reserve - contribution from parent As at As at

March 31, 2017 March 31, 2016

Balance as at the beginning of the year 336 122

Add: Additions during the year 389 214
Balance as at the end of the year 725 336

TOTAL - OTHER EQUITY 93,394 92,535

Nature and purpose of reserves

a. Capital redemption reseve

Capital redemption reserve represents reserves created upon buy back of equity shares in earlier years, pursuant to the
requirements of the Companies Act, 1956.
b. Employees Share Option Plan (ESOP) reserve
The ESOP reserve is used to recognise the grant date fair value of shared based options issued to employees by the
ultimate parent company. Refer Note 52 for details.

20 Provisions - Non-Current As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Other provisions
Provision for Product Upgradation [Refer Note 3(l)] 854 1,114 167
Provision for Contingency [Refer Note 3 (l)] 14,760 17,476 18,913
15,614 18,590 19,080

Provision for contingency

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

Provision for Product Upgradation:

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

(i) Movement in provisions

Year ended March 31, 2017 Year ended March 31, 2016

Provision for Provision for Provision for

Particulars Provision for
product product
contingency contingency
upgradation upgradation
Balance as at 31 March 2016 2,339 17,476 1,622 18,913
Provision made during the year 444 1,919 2,112 3,420
Provision used during the year (789) (1,819) (1,416) (1,584)
Unwinding of discount 47 - 21 -
Provision reversals/written back during the year - (2,817) - (3,273)
Balance as at 31 March 2017 2,041 14,760 2,339 17,476

110
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

21 Employee benet obligations As at As at As at

[Refer Notes 3(j) and 33] March 31, 2017 March 31, 2016 April 1, 2015

(a) Non-current provisions for employee benets :

Provision for gratuity 40 89 957
40 89 957
(b) Current provisions for employee benets :
Provision for gratuity 393 789 714
Provision for Compensated Absences 2,697 2,417 1,849
3,090 3,206 2,563

22 Other Non-Current Liabilities As at As at As at

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

Advance Service and Maintenance Billing 1,027 970 929

1,027 970 929

23 Short-term Borrowings As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured working capital loans repayable on demand from:
Directors of a Subsidiary - - 13
Unsecured working capital loan from related parties
Carrier Airconditioning & Refrigeration Limited 100 100 100

TOTAL 100 100 113

As at As at As at
24 Trade Payables March 31, 2017 March 31, 2016 April 1, 2015

Trade payables to related parties (Refer Note 44) 6,422 4,243 2,967

Trade Payables - Others

- Micro and Small Enterprises (Refer Note 45) 48 28 4
- Others 14,327 12,777 10,626

20,797 17,048 13,597

The Group's exposure to currency and liquidity risks related to trade payables is disclosed in Note 42.

25 Other nancial liabilities As at As at As at

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

Current
Capital creditors 200 64 205
Unpaid dividends 48 31 11
Interest accrued and due on borrowings 4 1 -
Temporary overdraft with banks 34 59 498
Derivative not designated as hedges
- Foreign exchange forward contracts 239 103 52
525 258 766

111
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

26 Provisions - Current As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

Provision for foreseeable losses on 15,817 11,394 8,571

contracts (Refer Note 3(d))
Provision for Product Upgradation 1,188 1,226 1,455
[Refer Notes 3(l) and 20] 17,005 12,620 10,026

27 Liabilities for current tax (Net)

Provision for tax - - 8,658
Advance tax - - (5,407)
Provision for tax (Net of advance tax) - 3,251

Movement in Current Tax Liabilities

Opening balances - 3,251
Less: Taxes paid - 1,300
Reclassification to Non-current provisions (1,951)
Closing balance - -

28 Other Current Liabilities As at As at As at

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

Advances from customers 5,401 5,882 5,325

Advance Service and Maintenance Billing 11,442 11,017 10,244
Statutory liabilities 1,944 1,939 1,914
Invoices raised in respect of Incomplete Contracts 1,24,287 1,09,225 97,328
(Refer Note 29)
Less: Adjusted against aggregated amount of cost incurred 89,233 77,850 72,221
and recognised profits (less recognised losses)
35,054 31,375 25,107
Deferred Revenue for elevator contracts for 874 850 725
service and maintenance 54,715 51,063 43,315

29 Revenue from operations

[Refer Note 3(d)] As at As at
March 31, 2017 March 31, 2016
Sale of products :
Contracts for supply and installation of 73,509 55,559
elevators, escalators and Trav-o-lators
Sale of services :
Income from services 47,120 45,203
Income from repairs 7,555 7,114

Other Operating Revenues :

Sale of raw materials and components 112 107
Sale of Scrap 209 138

Revenue from Operations (Net) 1,28,505 1,08,121

112
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
I) Disclosures pursuant to Ind AS 11:

As at As at
March 31, 2017 March 31, 2016
I Revenue from Contracts for supply and 73,509 55,559
installation of elevators, escalators and
Trav-o-lators recognised for the year
II Revenue from sale of services 5,833 5,725
recognised for the year
III Aggregate amounts of costs incurred and 1,05,539 90,165
recognised profits (less recognised losses)
up to the reporting date
IV Amount of customer advances outstanding for 5,401 5,882
contracts in progress as at the reporting date

V Amount of retentions due from customers for 233 65

contracts in progress as at the reporting date

Amount due from customers for contract work As at As at As at

(Refer Note 12) March 31, 2017 March 31, 2016 April 1, 2015
Amounts due from customers on contracts accounted
under Percentage of Completion ('PoC') is arrived at
as below [for all contracts in progress for which costs
incurred plus recognised profits (less recognised losses)
exceeds progress billings]
I Aggregate amounts of costs incurred and recognised 16,306 12,315 12,904
profits (less recognised losses) up to the reporting date
II Less: Aggregate amount of progress billings 15,374 11,033 12,120
932 1,282 784

Amount due to customers for contract work

(Refer Note 28)
Amounts due to customers on contracts accounted
under PoC is arrived at as below [for all contracts in
progress for which progress billings exceeds costs
incurred plus recognised profits (less recognised losses)]
I Aggregate of progress billings 1,24,287 1,09,225 97,328

II Less: Aggregate amounts of costs incurred and recognised 89,233 77,850 72,221
profits (less recognised losses) up to the reporting date
35,054 31,375 25,107

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

113
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

30 Other Income Year ended Year ended

March 31, 2017 March 31, 2016
Interest Income:
- Deposits with banks 6,836 7,977
- Income tax refund 189 283
- Loans to related parties (Refer Note 44) 2,755 1,379
- Others 14 10
Provision for Contingency no longer required written back (Net) (Refer Note 20) 898 -
Recoveries of expenses from related parties 345 304
Gain on forward contracts not designated as hedges (Net) - 4
Unwinding of interest on deposits / retention money / employee loans 103 62
Profit on sale / disposal of property, plant and equipment 50 33
Others - 40

11,190 10,092

Year ended Year ended

31 Cost of material consumed March 31, 2017 March 31, 2016
Raw material, components and spare parts

Opening stock 8,211 7,836

Add : Purchases during the year 60,500 43,818
Less: Closing stock 10,246 8,211
58,465 43,443

Year ended Year ended

32 Changes In Inventories Of Work-In-Progress March 31, 2017 March 31, 2016

Opening Stock
Components for Elevators Constructions
147 191
Less: Closing Stock
Components for Elevators Contructions 273 147

(126) 44

33 Employee Benet Expenses Year ended Year ended

March 31, 2017 March 31, 2016

Salaries, Wages, Allowances, Bonus and Benefits (Net) 24,192 22,399

Contribution to Provident and Family Pension Scheme 1,195 1,165
Contribution to Superannuation Scheme 170 168
Contribution to Gratuity Fund 587 599
Contribution to Employees' State Insurance and Employees' Deposit Linked Insurance Scheme 67 82

Share-based payment to employees (Refer Note 54) 389 214

Workmen and staff welfare expenses 932 941
27,532 25,568
*Amount below rounding off norms adopted by the company

114
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

I Dened Contribution Plans

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

Year ended Year ended

March 31, 2017 March 31, 2016
Amount recognised in the Statement of Profit and Loss
(i) Employers' Contribution to Superannuation 170 168
(ii) Employers' Contribution to Employees State Insurance and Employees'
Deposit Linked insurance scheme 67 82
(iii) Labour Welfare Fund * *
(ii) Contribution to Provident and Family Pension Scheme 1,195 1,165
1,432 1,415

* Amounts below rounding off norms adopted by the company.

II Dened Benet Plans

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

Funded Plan Unfunded Plan

Particulars
Net dened
Present Fair Value benet Present
Value of of Plan (asset) Value of
Obligation Assets liability Obligation

Balance as on 1 April 2015 7,240 5,610 1,630 41

Interest cost 579 449 130 3
Current service cost 461 461 5

Total amount recognised

in prot or loss 1,040 449 591 8

Actuarial (Gains)/Losses on Obligations -

Due to Change in Financial Assumptions 245 244 (2)
Actuarial (Gains)/Losses on
Obligations - Due to Experience 94 94 -
Expected Return on Plan Assets 94 (94) -
Total amount recognised in
other comprehensive income 339 94 244 (2)
Contributions by employer 1,630 (1,630) -
Benefit Paid (319) (319) - (4)
Balance as on 31 March 2016 8,299 7,464 835 43

115
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Funded Plan Unfunded Plan

Net dened Present

Present Fair Value benet
Particulars Value of of Plan Value of
(asset) Obligation
Obligation Assets liability
Balance as on 31 March 2016 8,299 7,464 835 43
Interest cost 627 564 63 3
Current service cost 516 - 516 5

Total amount recognised

in prot or loss 1,143 564 579 8

Actuarial (Gains)/Losses on Obligations -

259 - 259 -
Due to Change in Financial Assumptions
Actuarial (Gains)/Losses on
(363) (363) (6)
Obligations - Due to Experience
Expected Return on Plan Assets - 86 (86) -
Total amount recognised in
other comprehensive income (104) 86 (190) (6)
Contributions by employer - 835 (835)
-
Benefit Paid (466) (466) - (1)
Balance as on 31 March 2017 8,872 8,483 389 44

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

Funded Plan Unfunded Plan

As at As at As at As at As at As at
Particulars March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Present Value of funded obligation
as at the year end (8,872) (8,299) (7,240) (44) (43) (41)
Fair Value of Plan Assets as
at the year end 8,483 7,464 5,610
Funded Status (389) (835) (1,630) (44) (43) (41)
Present Value of unfunded Obligation - - -
as at the year end
Unfunded Net Liability recognised
in Balance Sheet (389) (835) (1,630) (44) (43) (41)

C) Amount recognised in the Balance Sheet

Funded Plan Unfunded Plan
Particulars As at As at As at As at As at As at
March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Present Value of Obligation (8,299) (7,240) (44) (43) (41)
(8,872)
at the end of the year
Fair value of plan assets
8,483 7,464 5,610 - - -
at the end of the year
Liability recognised in the Balance Sheet (389) (835) (1,630) (44) (43) (41)

116
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
D) Actuarial assumptions
Valuation in respect of Gratuity has been carried out by an independent actuary, as at the Balance Sheet date,
based on the following assumptions:
Funded Plan Unfunded Plan
As at As at As at As at
March 31, 2017 March 31, 2016 March 31, 2017 March 31, 2016
Discount Rate (per annum) 7.12% 7.56% 7.00% 7.50%
Rate of increase in Salary 10.00% 10.00% 9.00% 9.00%
Rate of Return on Plan Assets 7.12% 7.56% - -

- The discount rates reflects the prevailing market yields of Indian Government securities as at the Balance Sheet date for the
estimated term of the obligation.
- The estimates of future salary increases considered in actuarial valuation take into account inflation, seniority, promotion and
other relevant factors such as supply and demand and the employment market.
E) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below.
Funded Plan
Impact on dened benet obligation of Gratuity (In Rs. Lakhs)
As at March 31, 2017 As at March 31, 2016
Increase Decrease Increase Decrease
Discount Rate (0.5 % movement) (294) 313 (276) 294
Compensation levels (0.5 % movement) 303 (287) 286 (271)
Employee turnover (0.5 % movement) (56) 59 (44) 47

Unfunded Plan
Impact on dened benet obligation of Gratuity (In Rs. Lakhs)
As at March 31, 2017 As at March 31, 2016
Increase Decrease Increase Decrease
Discount rate (1% movement) (41) 46 (41) 47
Compensation levels (1% movement) 46 (41) 47 (41)
Employee turnover (-/+50%) (42) 46 (44) 47
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit
obligations as a result of reasonable changes in key assumptions occuring at the end of the reporting period.
F) The major categories of plan assets for gratuity are as follows:
Funded Plan
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 1, 2015
Amount % Amount % Amount %
Debts Instruments:
Central Government Securities 652 8 605 8 594 11
State Government Securities 242 3 340 5 415 7
Corporate Bonds 1,856 22 2,102 28 2,383 42

Investment Funds:
Special Deposits Scheme 273 3 273 4 273 5
Insurance managed funds 4,492 53 3,924 53 1,726 31

Others:
Cash and cash equivalents (Net) 968 11 220 3 219 4
Total 8,483 100 7,464 100 5610 100

117
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

G) Recognised under: March 31, 2017 March 31, 2016 April 1, 2015
Non-current employee benefit obligations
[Refer Note 21(a)] 40 89 957

Current employee benefit obligations

393 789 714
[Refer Note 21(b)]

H) Particulars March 31, 2017 March 31, 2016 April 1, 2015

Expected gratuity contribution
for the next year 838 785 711

I) Dened benet liability and employer contributions

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

Funded Plan
Particulars Less than Between Over 5 Total
a year 2 - 5 years years
March 31, 2017
Defined benefit obligation (gratuity) 764 3,089 12,620 16,473
March 31, 2016
Defined benefit obligation (gratuity) 685 2,892 12,450 16,027
April 1, 2015
Defined benefit obligation (gratuity) 609 2,505 10,890 14,004

Unfunded Plan
Particulars Less than Between Over 5 Total
a year 2 - 5 years years
March 31, 2017
Defined benefit obligation (gratuity) 1 19 21 41
March 31, 2016
Defined benefit obligation (gratuity) - 22 19 41
April 1, 2015
Defined benefit obligation (gratuity) - 9 28 37

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

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

ii) Provident Fund

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

118
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

The details of fund and plan asset position are given below:
Funded Plan
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Plan assets at period end, at fair value 27,154 24,056 21,214
Present value of benefit obligation at period end (27,154) (24,056) (21,214)
Asset recognized in balance sheet - - -

The plan assets have been primarily invested in government securities.

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

Funded Plan
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015
Government of India (GOI) bond yield 7.12% 7.56% 7.90%
Remaining term to maturity of portfolio 5 years 5 years 5 years
Expected guaranteed interest rate - First year : 8.65% 8.80% 8.75%
- Thereafter : 8.65% 8.65% 8.65%

The group contributed Rs. 1,195 lakhs and Rs. 1,165 lakhs to the provident fund during the years ended March 31, 2017 and
March 31, 2016, respectively and the same has been recognised in the Consolidated Statement of Profit and Loss under the
head Employees Benefit Expenses (Refer Note 33).

III) The Liability for leave encashment and compensated absences as at year end is Rs. 2,697 lakhs (March 31, 2016 - Rs.
2,417 lakhs and April 1, 2015 - Rs. 1,849 lakhs).

34 Interest expense Year ended Year ended

March 31, 2017 March 31, 2016

Unwinding of discount on Product Upgradation Provision 47 21

Interest on Borrowings 16 13
Interest expense on delayed payments of taxes - 52
Interest - others 9 6
72 92

Year ended Year ended

35 Depreciation And Amortisation Expense March 31, 2017 March 31, 2016

Depreciation of Property, Plant and equipment 1,279 1,376

Amorisation of Intangible Assets 1 *
1,280 1,376

*Amount below rounding off norms adopted by the group

119
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
36 Operating and other expenses Year ended Year ended
March 31, 2017 March 31, 2016

Consumption of stores and consumables 1,352 924

Packing and forwarding charges 3,633 2,090
Repairs and maintenance:
- Buildings 258 242
- Plant and machinery 91 62
- Vehicles 40 40
- Others 417 555
Rent (Refer Note 38) 1,933 1,747
Rates and Taxes 644 330
Insurance 680 348
Power and fuel 412 394
Expenses on contracts for installation/ service 4,920 3,626
Advertising, publicity and sales promotion 303 314
Commission 611 410
Commission to Non-Executive Directors 12 8
Royalties 4,370 3,855
Communication costs 395 322
Travelling and conveyance 2,235 2,129
Printing and stationery 363 351
Legal and professional charges [Refer Note (i) below] 1,477 1,156
Housekeeping Expenses 11 9
Provision for Loss on contracts 11 4
System and software maintenance expenses 1,406 1,699
Bad trade receivables and other financial assets written off 1,878 1,001
Less: Withdrawn from doubtful debts and receivable provision (1,430) (724)
448 277

Bad non-financial assets written off 12 -

Less: Withdrawn from doubtful receivable provision (12) -
- -
Provision for trade receivables and other financial assets 488 2,053
Provision for non-financial assets 111 27
Provision for product upgradation (Refer Note 20) 444 2,112
Provision for contingency (Refer Note 20) - 147
Directors' fees 2 2
Expenditure towards Corporate Social Responsibility activities [Refer Note (ii) below] 362 343
Loss on fluctuation in foreign exchange 628 695
Miscellaneous expenses 37 93
TOTAL 28,094 26,368

(i) Legal and professional charges includes auditors' remuneration (net of taxes, where applicable):
For statutory audit 55 55
For tax audit 8 8
For other services 13 8
Reimbursement of expenses 4 3
80 74

120
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

(ii) Corporate Social Responsibility Expense

(a) Gross amount required to be spent by the group during the year was Rs. 359 lakhs (Previous Year Rs. 343 Lakhs)
(b) Amount spent during the year on:

Particulars Paid during the year Yet to be paid Total

(i) Construction/acquisition of any asset - - -
(ii) On purposes other than (i) above Rs. 361 Lakhs Rs.1 Lakh Rs. 362 Lakhs
(Previous year (Previous year (Previous year
Rs. 343 Lakhs) Rs. Nil) Rs. 343 Lakhs)

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

Particulars Year ended Year ended
March 31, 2017 March 31, 2016
Profit attributable to the owners of the company 14,009 12,826
Weighted Average number of Equity Shares of
Rs. 10 each during the year 1,18,08,222 1,18,08,222
Earnings Per Share (Basic and Diluted) 118.64 108.60
Nominal Value of an Equity Share 10 10

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

38 Operating Leases [Refer Note 3(i)]

The Group has entered into non-cancellable operating leases for warehouse and office premises for a primary period of 5
to 10 years. The Company has given refundable interest free security deposits under the agreements. Certain agreements
contains provision for renewals.
Total future minimum lease payments in respect of the above mentioned premises being:

For the year For the year

Particulars ended ended
March 31, 2017 March 31, 2016
Amount Amount
Not later than one year 33 195
Later than one year and not later than five years 31 6
Later than five years
Lease payments recognised in the Statement of Profit and Loss during the year 1,933 1,747
39 Segment Information

Information about Primary Business Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Managing Director of the Company. The Company has identified the following
segments i.e. (i) Contract for supply and installation of elevators, escalators and trav-o-lators and (ii) services for
maintenance, repairs and modernization of elevators and escalators as reporting segments based on the information
reviewed by CODM.
The above business segments have been identified considering:
a) the nature of products and services
b) the differing risks and returns
c) the internal organisation and management structure, and
d) the internal financial reporting systems.
The segment information presented is in accordance with the accounting policies adopted for preparing the consolidated
financial statements of the Company.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third
parties.

121
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
Rupees in Lakhs
Particulars 2016-17 2015-16
New New
Equipment Service Total Equipment Service Total
Installation Installation

Revenue
Segment Revenue 73,613 54,892 1,28,505 55,649 52,472 1,08,121
Inter-segment Revenue - - - - - -

External Revenue 73,613 54,892 1,28,505 55,649 52,472 1,08,121

Other Income 898 - 898 - - -

Segment Result (12,429) 23,984 11,555 (11,873) 21,546 9,673

Unallocable Income /(Expenses)

Other Income 10,292 10,092
Other Expenses (310) (715)

Prot Before Taxation 21,537 19,050

Depreciation
Segment Depreciation 1,073 207 1,280 1,047 330 1,376
Unallocable Depreciation - -

Total Depreciation 1,280 1,376

Non Cash Expenses other

than Depreciation
Segment Non Cash Expenditure 1,928 (838) 1,090 3,184 1,078 4,262
Unallocable Non Cash Expenditure 322 1,149

Total Non Cash Expenditure 1,412 5,411

other than Depreciation

Information about major customers

There is no single customer which contributes more than 10% of the Company's total revenues.

40 Research and development expenses [Refer Note 3 (g)]

The Cost of Material Consumed, Employee Benefits Expense, Depreciation and Other Expenses shown in the Statement of
Profit and Loss include Rs. 1,340 lakhs (Previous Year Rs. 1,293 lakhs) in respect of the research activities undertaken
during the year.

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

122
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
42 Financial instruments – Fair values and risk management
A. Accounting classication and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in
the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount
is a reasonable approximation of fair value.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values
are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

March 31, 2017 Carrying amount

Note No. FVTPL FVTOCI Amortised Total
Cost
Financial assets
(i) Loans 6(a) and 6 (b) - - 73,097 73,097
(ii) Contract work-in-progress 12 - - 932 932
(iii) Trade receivables 13 (a) and 13 (b) - - 32,839 32,839
(iv) Cash and cash equivalents 14 - - 51,831 51,831
(v) Bank balance other than (iv) above 15 - - 90 90
(vi) Other financial assets 7 and 16 - - 4,628 4,628
(including non-current bank balance)
(vii) Derivatives not designated as hedges
- Foreign exchange forward contracts 16 4 - 4
4 - 1,63,417 1,63,421

Financial liabilities
(i) Short term borrowings 23 - - 100 100
(ii) Trade and other payables 24 - - 20,797 20,797
(iii) Other financial liabilities 25 - - 286 286
(iv) Derivative liabilities
- Foreign exchange forward contracts 25 239 - - 239
239 - 21,183 21,422

March 31, 2016 Carrying amount

Note No. FVTPL FVTOCI Amortised Total
Cost
Financial assets
(i) Loans 6(a) and 6 (b) - - 14,294 14,294
(ii) Contract work-in-progress 12 - - 1,282 1,282
(iii) Trade receivables 13 (a) and 13 (b) - - 32,483 32,483
(iv) Cash and cash equivalents 14 - - 1,07,143 1,07,143
(v) Bank balance other than (iv) above 15 - - 62 62
(vi) Other financial assets (including 7 and 16 - - 3,426 3,426
non-current bank balance)
(vii) Derivatives not designated as hedges
- Foreign exchange forward contracts 16
4 4
4 - 1,58,690 1,58,694
Financial liabilities
(i) Short term borrowings 23 - - 100 100
(ii) Trade and other payables 24 - - 17,048 17,048
(iii) Others 25 - - 155 155
(iv) Derivative liabilities
- Foreign exchange forward contracts 25 103 103
103 - 17,303 17,406

123
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

April 1, 2015 Carrying amount

Note No. FVTPL FVTOCI Amortised Total
Cost
Financial assets
(i) Loans 6(a) and 6 (b) - - 10,507 10,507
(ii) Contract work-in-progress 12 - - 784 784
(iii) Trade receivables 13 (a) and 13 (b) - - 28,246 28,246
(iv) Cash and cash equivalents 14 - - 1,03,887 1,03,887
(v) Bank balance other than (iv) above 15 - - 42 42
(vi) Other financial assets 7 and 16 - - 3,277 3,277
(including non-current bank balance)
- - 1,46,743 1,46,743

Financial liabilities
(i) Short term borrowings 23 - - 113 113
(ii) Trade and other payables 24 - - 13,597 13,597
(iii) Other financial liabilities 25 - - 714 714
(iv) Derivative liabilities
- Foreign exchange forward contracts 25 52 52
52 - 14,424 14,476

B. Measurement of fair values

i) Valuation processes

The finance department of the group includes a team that carries out the valuations of financial assets and liabilities required for
financial reporting purposes.

ii) Fair value hierarchy

No financial instruments are recognised and measured at fair value, except derivative contracts which are measured at fair value
through profit and loss. These derivative contracts are over-the-counter short term foreign exchange forwards that are not traded
in an active market. Their fair valuation is determined using valuation techniques that maximise the use of observable market
data and rely as little as possible on entity-specific estimates and quotes recieved from the banks. Since all significant inputs
required to fair value these derivative contracts are observable, the instruments are classified as level 2.

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

C Risk management framework

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

i Management of the credit risk

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

Trade and other receivables

The group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Concentrations of
credit risk with respect to trade receivables are limited, due to the group’s customer base being large. All trade receivables are
reviewed and assessed for default on a regular basis. Our historical experience of collecting receivables, supported by the level of
default, is that credit risk is low.

124
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
Exposures to customers outstanding at the end of each reporting period are reviewed by the group to determine incurred and
expected credit losses. The group assesses and manages credit risk based on the group's credit policy. Under the group credit
policy each new customer is analyzed individually for credit worthiness before the group's standard payment and delivery terms
and conditions are offered. The group assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost. For trade receivables, the group applies the simplified approach permitted by Ind AS 109 Financial
Instrument, which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining
whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit
losses, the group considers reasonable and supportable information that is relevant and available without undue cost or effort.
This includes both quantitative and qualitative information and analysis, based on the group’s historical experience and informed
credit assessment and including forward looking information.
The group's accounts receivable are geographically dispersed. The Management do not believe there are any particular customer
or group of customers that would subject the group to any significant credit risks in the collection of accounts receivable.
Following is the movement in Provision for Expected Credit Loss on Trade Receivables:

Particulars Year ended Year ended

March 31, 2017 March 31, 2016
Loss allowance at the beginning of the year 6,258 5,120
Changes in allowance during the year (930) 1,138
Loss allowance as at the end of the year 5,328 6,258

Loans to related parties:

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

Cash and cash equivalents

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

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

Other Financial Assets:

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

Following is the movement in Provision for Expected credit loss on Other nancial assets:

Year ended Year ended

Security Deposits March 31, 2017 March 31, 2016
Loss allowance at the beginning of the year 622 426
Changes in allowance during the year (11) 196
Loss allowance as at the end of the year 611 622

125
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
ii. Liquidity risk
Liquidity risk is the risk that the group will face in meeting its obligations associated with its financial liabilities. The Company’s
approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses.

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

Exposure to liquidity risk

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

Funded Plan
Carrying Less than More than
Particulars amount Total 1- 5 years
1 year 5 years

As at March 31, 2017

Non-derivative nancial liabilities
Short term borrowings 100 100 100 - -
Trade payables 20,797 20,797 20,797 - -
Other financial liabilities 286 286 286 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 239 239 239 - -

March 31, 2016

Non-derivative nancial liabilities
Short term borrowings 100 100 100 - -
Trade payables 17,048 17,048 17,048 - -
Other financial liabilities 155 155 155 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 103 103 103 - -

April 1, 2015
Non-derivative nancial liabilities
Short term borrowings 113 113 113
Trade payables 13,597 13,597 13,597 - -
Other financial liabilities 714 714 714 - -
Derivative Financial Liabilities
Foreign exchange forward contracts 52 52 52 - -

126
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
iii. Market risk
The group’s size and operations result in it being exposed to foreign currency risk. The foreign currency risk may affect the
group’s income and expenses, or its financial position and cash flows. The objective of the group’s management of foreign
currency risk is to maintain this risk within acceptable parameters, while optimising returns. The group manages currency
exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are fully covered
with strict limits placed on the amount of uncovered exposure, if any, at any point in time. The group’s exposure to, and
management of this risks is explained below:

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

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

Particulars Number of Foreign Number of Foreign Amount Number of Foreign Amount
contracts currency Amount contracts currency contracts currency
Import contracts

EURO 13 40 2,911 7 12 988 2 5 367

JPY 6 706 433 7 660 405 2 74 40
USD 4 6 412 17 14 1,011 3 15 970
CHF 4 1 93 2 1 50 - - -
CNH 10 284 2,770 17 93 997 - - -
SGD - - - 1 * 5 - - -
HKD 1 1 12 - - - - - -

6,631 3,456 1,377

Export contracts
USD 2 1 74 6 2 120 - - -
74 120 - -

The group's exposure to foreign currency risk at the end of the reporting period expressed in INR lakhs, are as follows:
March 31, 2017 March 31, 2016 April 1, 2015
Particulars Foreign Foreign Amount Foreign Amount
currency Amount currency currency
Receivables
USD 10 627 5 316 10 617
Payables
USD 12 764 6 374 20 1,240
EURO - - 8 631 7 497
SGD * * - - * 2
HKD 9 73 18 158 12 99
JPY - - - - 54 28
CNH - - 23 232 * *
CHF - - - - * 27

Sensitivity analysis
A 10% strenghtening / weakening of the respective foreign currencies with respect to functional currency of group would result in
increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular
interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out
based on the exposures as of the date of statements of financial position.
Statement of Prot or loss (Amount)
Currencies March 31, 2017 March 31, 2016
USD 14 6
EURO - 63
SGD 0 -
HKD 7 16
CNH - 23
21 108

* Amounts are below rounding off norms adopted by the group

127
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
43 A INCOME TAX EXPENSE Year ended Year ended
Amounts recognised in Statement of Prot and Loss March 31, 2017 March 31, 2016

Income tax expense

Current tax
Current tax on profits for the year 8,800 7,420
Adjustments for current tax of prior periods (29) (777)
Total current tax expense 8,771 6,643

Defered tax
(Decrease) increase in deferred tax liabilites (1,101) (270)
Total deferred tax expense/(benefit) (1,101) (270)
Income tax expense 7,670 6,373

For the Year ended 31 March, 2017

Tax expense /
B Amounts recognised in other comprehensive income Before tax Net of tax
(benet)
Remeasurements of defined benefit liability / (asset) (196) 66 (130)
(196) 66 (130)

For the Year ended 31 March, 2016

Tax expense /
Before tax Net of tax
(benet)
Remeasurements of defined benefit liability / (asset) 243 (85) 158
243 (85) 158

C Reconciliation of effective tax rate Year ended Year ended

March 31, 2017 March 31, 2016

Prot before tax 21,679 19,199

Tax using the Company’s domestic tax rate
(Current year 34.61 % and Previous Year 34.61%) 7,503 6,645
Add Tax Effect on amounts which are not deductible
(taxable) in calculating taxable income:
Adjustments for current tax of prior periods (29) (777)
Interest on delayed payments of taxes - 18
Share based payments 134 74
Deferred Tax on undistributed Profits of an Associate 29 30
Tax losses for which no deferred income tax was recognised 74 28
Others (40) 356

7,670 6,373

128
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
D Movement in deferred tax balances
March 31, 2017
Deferred Tax Assets/ Net balance Recognised in Recognised Other Net Deferred Deferred
(Liabilities) April 1, 2016 prot or loss in OCI tax asset tax liability
Provision for doubtful debts/advances 2,723 (304) - - 2,419 2,419 -

Provision for Compensated Absences and Gratuity 831 295 (66) - 1,060 1,060 -

Voluntary Separation Plan 262 (94) - - 168 168 -

Provision for Product Upgradation 810 (102) - - 708 708 -
Disallowances under Section 40(a) of the Income Tax Act, 1961 135 - - - 135 135 -

Depreciation 64 85 - - 149 149 -

Provision for Contingency 6,048 (940) - - 5,108 5,108 -
Deferred Revenue - - - - - - -

Provision for foresseable losses on contracts - 2,667 - - 2,667 2,667 -

Deferred Revenue 538 (476) - - 62 62 -
Deferred Tax Assets 11,411 1,130 (66) - 12,475 12,475 -
Depreciation - - - - - - -
Dividend Distribution Tax on undistributed profit of associate (31) (29) - - (60) - (60)
Net tax assets 11,380 1,101 (66) - 12,415 12,476 (60)

D Movement in deferred tax balances

March 31, 2016
Deferred Tax Assets/ Net balance Recognised in Recognised Other Net Deferred Deferred
(Liabilities) April 1, 2015 prot or loss in OCI tax asset tax liability
Provision for doubtful debts/advances 2,206 517 - - 2,723 2,723 -
Provision for Compensated Absences and Gratuity 1,177 (431) 85 - 831 831 -

Voluntary Separation Plan 369 (107) - - 262 262 -

Provision for Product Upgradation 551 259 - - 810 810 -
Disallowances under Section 40(a) of the Income Tax Act, 1961 133 2 - - 135 135 -
Depreciation - 64 - - 64 64 -
Provision for Contingency 6,429 (381) - - 6,048 6,048 -

Deferred Revenue 207 331 - - 538 538 -

Deferred Tax Assets 11,072 254 85 - 11,411 11,411 -
Depreciation (46) 46 - - - - -
Dividend Distribution Tax on undistributed profit of associate (1) (30) - - (31) - (31)
Net tax assets 11,025 270 85 - 11,380 11,411 (31)

Deferred Tax Assets and Deferred Tax Liabilities have been offset because they related to the same governing taxation laws.
E. Unused tax losses for which no deferred tax asset has been recognised.
As at March 31, 2017 As at March 31, 2016
Unused Potential tax Unused Potential tax Year of
Financial Year tax Losses benet tax Losses benet Expiry
2009-10 50 15 50 15 March 31, 2018
2010-11 14 4 14 4 March 31, 2019
2011-12 101 31 101 31 March 31, 2020
2012-13 58 18 58 18 March 31, 2021
2013-14 35 11 35 11 March 31, 2022
2014-15 14 4 14 4 March 31, 2023
2015-16 59 18 59 18 March 31, 2024
2016-17 153 47 - - March 31, 2025

129
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
44 Related Party Disclosures
A Relationships:
(I) Where Control Exists
United Technologies Corporation Inc., United States
United Technologies South Asia Pacific Pte Ltd, Singapore Ultimate Holding Company
(Formerly known as Singapore Holdco. Pte. Ltd, Singapore) Holding Company
(II) Associate Company
Trio Elevators Co (India) Limited, India
(III) Parties Under Common Control with whom transactions have taken place during the year.
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey
Carrier Air Conditioning & Refrigeration R&D Management (Shanghai) Co. Ltd.,China
Carrier Airconditioning & Refrigeration Limited, India
Carrier Race Technologies Private Limited, India
Carrier Singapore (PTE) Limited, Singapore
Chubb Alba Control Systems Limited, India
Concepcion-Otis Philippines, Inc., Philippines
Elevators (Private) Limited, Sri Lanka
Guangzhou Otis Elevator Company Ltd, China
JSC MOS OTIS Russia
Nippon Otis Elevator Company, Japan
Otis A.S., Czech Republic
Otis AS, Norway
Otis Electric Elevator Co., Ltd., China (Formerly known as Xizi Otis Elevator Co., Ltd., China)
Otis Elevator (China) Co., China
Otis Elevator Co Pty Ltd, Australia
Otis Elevator Company (H.K.) Limited, Hong Kong
Otis Elevator Company (M) SDN BHD, Malasiya
Otis Elevator Company (S) Pte. Ltd., Singapore
Otis Elevator Company Ltd, Thailand
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia
Otis Elevator Company, New Jersey, United States
Otis Elevator Traction Machine (China) Co. Ltd., China
Otis Elevator VietNam Company Limited, Vietnam
Otis Elevator Worldwide SPRL,Belgium
Otis Elevator, Korea
Otis Elevators International Inc., Hong Kong
Otis GMBH & Co. OHG, Germany
Otis High-Rise Elevator(Shanghai) Co., Ltd., China
Otis L.L.C., U. A. E.
OTIS SCS, France
P.T.Citas Otis Elevator, Indonesia
Seral Otis Industria Metalurgica Ltda, Chile
Sigma Elevator (M) SDN BHD, Malasiya
Sigma Elevator Singapore Pte Ltd,Singapore
United Technologies Corporation India Private Limited, India
UTC Building & Industrial Systems EMEA SAS, France
UTC Fire & Security India Limited, India
Zardoya Otis S.A., Spain

(IV) Key Managerial Personnel

Sebi Joseph
Pedro Silva Ribeiro Geada Marcal (Till June 29, 2015) Managing Director
Puthan Naduvakkat Suma Director
Priya Shankar Dasgupta Director
Ram Sukhraj Tarneja (Till August 07, 2015) Independent Director
Anil Vaish (From March 10, 2016) Independent Director
Independent Director

130
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
(V) Transaction with Post Emploment benet entities
Otis Elevator Company (India) Limited Employees' Gratuity Fund
Otis Elevator Company (India) Limited Staff Provident Fund

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

Particulars Year ended Year ended

March 31, 2017 March 31, 2016
Short term employee benfits:
- Salaries and other employee benefits 522 364
Post employment benefits - gratuity 52 55
Long term employee benefits- Compensated absences 21 24
Employee share-based payment 16 43
Commission and sitting fee to non executive directors 14 8
Total 625 494

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

Particulars Category For the year ended For the year ended
March 31, 2017 March 31, 2016
Purchase of Goods and Materials
Otis Elevator (China) Co., China III 393 314
Otis Electric Elevator Co., Ltd., China III 3,315 1,056
(Formerly known as Xizi Otis Elevator Co., Ltd., China)
Zardoya Otis S.A., Spain III 4,131 2,029
Otis GMBH & Co. OHG, Germany III 2,215 1,039
Otis Elevator Company, New Jersey, United States III 166 137
Otis Elevator Traction Machine (China) Co. Ltd., China III 30 49
Nippon Otis Elevator Company, Japan III 894 290
OTIS SCS, France III 228 275
Guangzhou Otis Elevator Company Ltd, China III 88 162
Otis High-Rise Elevator(Shanghai) Co., Ltd., China III 1,378 1,570
JSC MOS OTIS Russia III - 3
Otis A.S., Czech Republic III 8 29
Otis Elevator, Korea III - 1
Total 12,846 6,954
Purchase of Fixed Assets
Zardoya Otis S.A., Spain III 20 4
Carrier Airconditioning & Refrigeration Limited, India III 11 30
Chubb Alba Control Systems Limited, India III 5 26
Total 36 60
System and Software Maintenance Expenses
Otis Elevator Company (S) Pte. Ltd., Singapore III 21 40
Otis Elevator Company, New Jersey, United States III 489 392
Otis Elevators International Inc., Hong Kong III 383 398
Total 892 831

131
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
(ii) The following are the details of transactions and balances with related parties:

Particulars Category For the year ended For the year ended
March 31, 2017 March 31, 2016
Legal and Professional Expenses
Otis Elevator Company, New Jersey, United States III 11 17
United Technologies Corporation India Private Limited, India III 14 20
Total 25 36
Royalty Expenses
Otis Elevator Company, New Jersey, United States III 4,370 3,855
Total 4,370 3,855
Repairs and Maintenance - Others
Carrier Airconditioning & Refrigeration Limited, India III 26 20
Chubb Alba Control Systems Limited, India III 18 -
Total 43 20
Reimbursement of Expenses to related parties
Otis Elevator Company, New Jersey, United States III 44 229
Otis Elevator VietNam Company Limited, Vietnam III 1 -
OTIS SCS, France III 42 88
Otis Elevator Company (S) Pte. Ltd., Singapore III * 5
Otis Elevator Co Pty Ltd, Australia III * 4
Nippon Otis Elevator Company, Japan III - 2
Otis High-Rise Elevator(Shanghai) Co., Ltd., China III * 6
Carrier Airconditioning & Refrigeration Limited, India III - 2
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey III - 1
Carrier Race Technologies Private Limited, India III * *
Carrier Air Conditioning &Refrigeration R&D Management
(Shanghai) Co. Ltd.,China III - 8
United Technologies South Asia Pacific Pte Ltd, Singapore I 1 -
Otis AS, Norway III 2 -
Otis Elevator (China) Co., China III 10 -
Total 99 346
Rent paid to Other Companies
Carrier Airconditioning & Refrigeration Limited, India III 73 64
Total 73 64
Revenue from Sale of Goods/Services
Otis Elevator Co Pty Ltd, Australia III - 4
Seral Otis Industria Metalurgica Ltda, Chile III 63 91
Otis Elevator Company (H.K.) Limited, Hong Kong III * *
Concepcion-Otis Philippines, Inc., Philippines III - 1
Elevators (Private) Limited, Sri Lanka III 978 49
P.T.Citas Otis Elevator, Indonesia III - 1
Total 1,042 146

132
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars Category For the year ended For the year ended
March 31, 2017 March 31, 2016
Recovery from related parties
Otis Elevator Company, New Jersey, United States III 38 *
Sigma Elevator Singapore Pte Ltd,Singapore III 7 -
United Technologies South Asia Pacific Pte Ltd, Singapore I 300 304
Total 345 304
Recovery of expenses from related parties
Otis Elevator Company (M) SDN BHD, Malasiya III 102 -
Otis Elevator Company Ltd, Thailand III 1 -
Concepcion-Otis Philippines, Inc., Philippines III 59 -
Carrier Airconditioning & Refrigeration Limited, INDIA III 57 -
UTC Fire & Security India Limited, India III * -
Sigma Elevator (M) SDN BHD, Malasiya III * -
Sigma Elevator Singapore Pte Ltd,Singapore III 1 -
Chubb Alba Control Systems Limited, INDIA III * -
Carrier Race Technologies Private Limited, India III * -
Otis Elevator Company, New Jersey, United States III 158 114
United Technologies South Asia Pacific Pte Ltd, Singapore I 11 21
Otis L.L.C., U. A. E. III 7 7
Otis Elevator Company (S) Pte. Ltd., Singapore III 4 4
Otis Elevator, Korea III - 2
Trio Elevators Co (India) Limited, India II - 14
Otis Elevator (China) Co., China III 3 13
Otis Electric Elevator Co., Ltd. III * 14
(Formerly known as Xizi Otis Elevator Co., Ltd., China)
Carrier Air Conditioning &Refrigeration R&D Management III 115 131
(Shanghai) Co. Ltd.,China
Carrier Singapore (PTE) Limited, Singapore III 3 17
UTC Building & Industrial Systems EMEA SAS, France III - 140
Nippon Otis Elevator Company, Japan III 272 41
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia III 3 3
Otis High-Rise Elevator(Shanghai) Co., Ltd., China III - 2
Otis Elevators International Inc., Hong Kong III - 2
Otis Elevator Worldwide SPRL,Belgium III 61 -
P.T.Citas Otis Elevator, Indonesia III 1 -
Others III - 2
Total 858 528

133
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Particulars Category For the year ended For the year ended
March 31, 2017 March 31, 2016
Recovery of rent from related parties
(netted off from rent expense)
Carrier Airconditioning & Refrigeration Limited, India III 144 139
Carrier Race Technologies Private Limited, India III 15 10
Chubb Alba Control Systems Limited, India III 35 25
UTC Fire & Security India Limited, India III 29 21
Total 222 196
Inter Corporate Loan Given / (Repaid) (Net)
UTC Fire & Security India Limited, India III 5,450 2,300
Chubb Alba Control Systems Limited, India III 53,612 115
Carrier Race Technologies Private Limited, India III - 1,530
United Technologies Corporation India Private Limited, India III (235) (47)
Total 58,827 3,898
Interest on Inter Corporate Loan Given
UTC Fire & Security India Limited, India III 1,661 1,047
Chubb Alba Control Systems Limited, India III 715 100
Carrier Race Technologies Private Limited, India III 366 204
United Technologies Corporation India Private Limited, India III 13 28
Total 2,755 1,379
Interest Expense on Working Capital Loan
Carrier Airconditioning & Refrigeration Limited, India III 16 13
16 13
Dividend paid during the year
United Technologies South Asia Pacific Pte Ltd, Singapore I 11,020 6,380
Total 11,020 6,380

Outstanding Balances Balance as at Balance as at Balance as at

Category March 31, 2017 March 31, 2016 April 1, 2015
Loan Receivable
UTC Fire & Security India Limited, India III 15,430 9,980 7,680
Carrier Race Technologies Private Limited, India III 2,930 2,930 1,400
United Technologies Corporation India Private Limited, India III - 235 282
Chubb Alba Control Systems Limited, India III 54,577 965 850
Total 72,937 14,110 10,212
Accrued Interest on Inter Corporate Deposit (net of TDS)
UTC Fire & Security India Limited, India III 1,495 942 571
United Technologies Corporation India Private Limited, India III - 4 -
Chubb Alba Control Systems Limited, India III 644 - -
Carrier Race Technologies Private Limited, India III 330 - 21
Total 2,468 946 591

134
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Outstanding Balances Balance as at Balance as at Balance as at

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

Loan Payable:
Carrier Airconditioning & Refrigeration Limited, India III 100 100 100
Total 100 100 100
Interest accrued and due on Working Capital Loan
Carrier Airconditioning & Refrigeration Limited, India III 4 1 -
Total 4 1 -

Payables
Otis Elevator Company, New Jersey, United States III 1,099 1,001 1,090
Otis Elevators International Inc., Hong Kong III 85 158 99
Otis Elevator Company (S) Pte. Ltd., Singapore III * 5 -
OTIS SCS, France III 173 176 156
Otis AS, Norway III - 2 -
Buga Otis Asansor Sanayi Ve Ticaret A.S.,Turkey III - 1 -
Carrier Airconditioning & Refrigeration Limited, India III 13 25 25
Zardoya Otis S.A., Spain III 1,277 821 256
Otis GMBH & Co. OHG, Germany III 807 360 315
Nippon Otis Elevator Company, Japan III 385 363 40
Guangzhou Otis Elevator Company Ltd, China III 23 56 109
Otis High-Rise Elevator(Shanghai) Co., Ltd., China III 271 508 173
Otis Elevator (China) Co., China III 135 167 324
Otis Elevator Traction Machine (China) Co. Ltd., China III 18 20 -
Otis A.S., Czech Republic III 4 3 12
Otis Electric Elevator Co., Ltd. III 2,131 561 343
Otis Elevator VietNam Company Limited, Vietnam III 1 - -
Carrier Race Technologies Private Limited, India III - * -
Carrier Air Conditioning &Refrigeration R&D Management III - 8 -
(Shanghai) Co. Ltd.,China
United Technologies South Asia Pacific Pte Ltd, Singapore I 1 - -
United Technologies Corporation India Private Limited, India III - - 18
Pratt & Whitney, U. S. A. III - 7 7
Total 6,422 4,243 2,967

Receivables
Trade Recievables:
Elevators (Private) Limited, Sri Lanka III 39 - -

135
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Outstanding Balances Balance as at Balance as at Balance as at

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

Other Financial Assets:

United Technologies South Asia Pacific Pte Ltd, Singapore I 112 87 427
Otis Elevator Company (S) Pte. Ltd., Singapore III 1 4 1
Otis Elevators International Inc., Hong Kong III - - 2
Otis Elevator Company, Kuwait III - - 1
P.T.Citas Otis Elevator, Indonesia III 1 * -
Otis Elevator, Korea III - - 2
Concepcion-Otis Philippines, Inc., Philippines III 11 - -
Otis Elevator Company (M) SDN BHD, Malasiya III 32 - -
Seral Otis Industria Metalurgica Ltda, Chile III 34 - 34
Zayani Otis Elevator Company W.L.L., Bahrain III - - 3
Otis Elevator Company Ltd, Thailand III 1 - -
Otis Elevator Worldwide SPRL,Belgium III 59 - -
Otis Elevator VietNam Company Limited, Vietnam III - - 1
Sigma Elevator (M) SDN BHD, Malasiya III * - -
Sigma Elevator Singapore Pte Ltd,Singapore III 8 - -
Trio Elevators Company (India) Limited, India II 14 14 -
Carrier Airconditioning & Refrigeration Limited, India III 64 48 44
Chubb Alba Control Systems Limited, India III 23 11 4
Nippon Otis Elevator Company, Japan III 80 39 -
Carrier Race Technologies Private Limited, India III 10 3 9
UTC Fire & Security India Limited, India III 23 8 19
Otis Elevator (China) Co., China III 3 13 6
Otis High-Rise Elevator(Shanghai) Co., Ltd., China III - 2 -
Otis Electric Elevator Co., Ltd. III - 26 114
Otis Elevator Co Pty Ltd, Australia III - 4 -
Otis Elevator Company, New Jersey, United States III 18 - 44
Otis Elevator Company Saudi Arabia Limited, Saudi Arabia III 2 3 -
Carrier Air Conditioning & Refrigeration R&D Management III 91 100 -
(Shanghai) Co. Ltd.,China
Carrier Singapore (PTE) Limited, Singapore III - 9 -
UTC Building & Industrial Systems EMEA SAS, France III - 39 -
588 410 712
Total 627 410 712

Note:
For information on transactions with post employment benefit plans mentions in A (V) above, refer the Note 36.

*Amounts are below rounding off norms adopted by Group.

136
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
45 Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development
Act, 2006 (MSMED Act). The disclosures pursuant to the said MSMED Act are as follows:

Year ended Year ended Year ended

Particulars
March 31, 2017 March 31, 2016 March 31, 2015

Principal amount due to suppliers registered under the 42 24 2

MSMED Act and remaining unpaid as at year end

Interest due to suppliers registered under the MSMED Act

and remaining unpaid as at year end 6 4 2

Principal amounts paid to suppliers registered under the 213 182 10

MSMED Act beyond the appointed day during the year

Interest paid, other than under Section 16 of MSMED Act - - -

to suppliers registered under the MSMED Act beyond the
appointed day during the year

Interest paid, under Section 16 of MSMED Act to suppliers 1 * *

registered under the MSMED Act beyond the appointed
day during the year

Interest due and payable towards suppliers registered 4 3 1

under MSMED Act for payments already made

Further interest remaining due and payable for earlier

years 17 12 -

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

The above information regarding total outstanding dues to Micro Enterprises and Small Enterprises and that is given in Note 24
has been determined to the extent such parties have been identified on the basis of information available with the Group.

137
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

46 Contingent Liabilities As at As at As at
March 31, 2017 March 31, 2016 April 1, 2015

a) Claims against the Group not acknowledged as debt

(i) Income-tax matters
- Matters decided against the Group in respect of which
the Group has preferrred an appeal.

The demand outstanding against the Group not

acknowledged as debts and not provided for, in respect 14 14 14
of which the Group is in appeal, pertains to litigations/
disputes with various Income Tax Authorities.
The Group has strong grounds of appeal and does not
foresee any outflow in this regard.
(ii) Sales tax matters
- Show Cause Notices 646 646 1,323
- Demand Notices 33,334 32,648 28,123
Note: 'Assessed Sales Tax liabilities of the Group not
acknowledged as debts and not provided for, in respect
of which the Group is in appeal pertains to litigations/
disputes with various Sales Tax Authorities. Based on
opinion received from legal consultants, the Management
is of view that the Group does not expect an outflow in
this regard.

(iii) Excise and Service Tax matters

Excise matters
- Show Cause Notices 44,601 40,356 37,637
- Demand Notices 3,234 3,234 3,234

Service Tax matters

- Show Cause Notices - 1,515 137
- Demand Notices 24,373 22,602 22,465
Excise and Service tax liabilities of the Group not
acknowledged as debts and not provided for, in respect
of which the Group is in appeal pertains to litigations/
disputes with various Excise and Service Tax Authorities.
Based on opinion received from legal consultants, the
Management is of view that the Group has strong
grounds of appeal and does not foresee any outflow in
this regard. Interest with respect to above matters has
been considered to the extent quantified by the tax
authorities.
b) Litigations / claims against the Group by customers /
ex-employees / general public. 3,643 4,335 4,358
The Group has strong grounds of appeal and does
not foresee any outflow in this regard.

c) Commitments

i. Estimated amount of contracts [net of capital advances of

Rs. 26 Lakhs (March 31, 2016 : Rs. 1 Lakhs, April 1, 507 172 264
2015 Rs. 204 Lakhs) remaining to be executed on
Capital Account not provided for.
ii. Guarantees given by banks to various government
departments and customers for specific business 19,718 14,043 9,567
purpose. The Management is of opinion that there will be
no impact on future cash flow of the Group.

138
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

47 Capital Management
The Group determines the capital requirements based on its financial performance, operating and long term investment plans.
The funding requirements are met through operating cash flows generated. For the purpose of Group's Capital Risk
Management, ""Capital"" includes issued equity share capital, securities premium and all other equity reserves attributable to it's
shareholders.

The Group's objective in managing its capital is to safeguard its ability to continue as a going concern and to maximise
shareholder's values.

The capital structure of the Group is based on management’s assessment of the appropriate balance of key elements in order
to meet its strategic and day-to day needs. The Group considers the amount of capital in proportion to risk and manage the
capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders, return capital to
shareholders or issue new shares.

The Group maintains a stable and strong capital structure with a focus on total equity so as to maintain shareholders and
creditors confidence and to sustain future development and growth of its business. The Group takes appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

The management monitors the return on capital as well as the level of dividends to shareholders. Refer table below for the
dividends paid :

Particulars For the year ended For the year ended

March 31, 2017 March 31, 2016
Equity shares
Interim dividend Rs. 40 per fully paid share - 4,724
Final dividend for the year ended March 31, 2016 of Rs. 95 11,218 1,771
(Previous year - Rs. 15) per fully paid share

Particulars As at As at
March 31, 2017 March 31, 2016
Dividends not recognised at the end of the reporting period
In addition to the above, subsequent to the year end the directors
of the Group have recommended the payment of final dividend of - 11,218
Rs. Nil (March 31, 2016 - Rs. 95) per fully paid equity share.

48 Events Occuring after the balance sheet date:

Subsequent to year end, the Board of directors of the Group have declared an interim dividend of Rs. 360 per share aggregating
Rs. 42,510 lakhs vide Board resolution dated July 06, 2017. The dividend distribution tax paid on these dividend is Rs. 8,654
lakhs.

49 Interests in other entities

(a) Subsidiary
The group's subsidiary as at 31 March 2017 is set out below. Subsidiary has capital consisting solely of equity shares that
are held directly by the group, and the proportion of ownership interests held equals the voting rights held by the group.

Place of busines/ Ownership interest held by the Ownership interest held by

country ownership group the non-controlling interests
of incorporation
Name of Entity Principal activities
31 March, 2017 31 March, 2016 1 April, 2015 31 March, 2017 31 March, 2016 1 April, 2015

Supriya Elevator Company Manufacture,

India 100% 80% 80% - 20% 20% erection, installation and
(India) Limited
maintenance of elevators.

139
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
(b) Non-Controlling interests :
Non-wholly owned subsidiary is not material during current as well as previous period. Therefore, financial information about non-
wholly owned subsidiary is not separately disclsoed.

(c) Transaction with Non-Controlling interests :

The group had acquired additional 19.98% equity stake in Subsidiary, Supriya Elevators Company (India) Liimited, on March 08,
2017. The carrying amount of 19.98% non-controlling interest acquired in subsidiary was negative Rs. 57 Lakhs. The group has
adjusted the carrying amount of non-controlling interest of negative Rs. 57 Lakhs and consideration of Rs. 150 Lakhs paid
towards acquisition of 19.98% stake in subsidiary, with equity attributable to owners of the parent.

Particulars As at As at
31 March, 2017 31 March, 2016
Carrying amount of non-controlling interests acquired. (57) -
Consideration paid to non-controlling interests. (150) -
Excess of consideration paid recognised in retained earnings within equity. (207) -

(d) Investment in associates :

Quoted fair value Carrying amount

Name of Entity % of
Place of ownership Accounting 31 March, 2017 31 March, 2016 1 April, 2015 31 March, 2017 31 March, 2016 1 April, 2015 Principal activities
Business Interest Method
Manufacture, erection,
Trio Elevators Co India 20% Equity * * * 440 299 151 installation and
(India) Limited method maintenance of elevators,
escalators and travolators.

* Unlisted entity - No quoted price available.

50 Dislosures mandated by schedule III of Companies Act 2013, by way of additional information

Net Assets, i.e., total assets Share in prot or loss Share in other Share in Total
minus total liabilities comprehensive income comprehensive income
Name of the entity As % of As % of As % As %
consolidated Amount consolidated Amount of consolidated Amount of consolidated Amount
net assets prot or loss other other
comprehensive comprehensive
inocme inocme
Parent (Indian)
Otis Elevator Company (India) Limited
31 March 2017 100% 94,952 100% 13,963 96% 124 100% 14,087
31 March 2016 100% 93,978 95% 12,196 101% (160) 95% 12,036

Subsidiaries (Indian)
Supriya Elevator Company (India) Limited
31 March 2017 -1% (784) -2% (212) 5% 6 -1% (206)
31 March 2016 -1% (576) -1% (79) -1% 2 -1% (77)

Inter-company eliminations and

consolidation adjustments
31 March 2017 0% (33) 1% 116 0% - 1% 116
31 March 2016 0% 15 4% 560 0% - 4% 560

Associate (Indian)
Trio Elevators Co (India) Limited
31 March 2017 0% 440 1% 142 -1% (1) 1% 141
31 March 2016 0% 299 1% 149 0% (1) 1% 148

Total
31 March 2017 100% 94,575 100% 14,009 100% 129 100% 14,138
31 March 2016 100% 93,716 100% 12,826 100% (159) 100% 12,667

140
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
51 Offsetting nancial assets and nancial liabilities

The following table presents the recognized financial instruments that are subject to enforceable master netting arrangements
and other similar agreements but not offset, as at March 31, 2017, March 31, 2016 and April 1, 2015.

Particulars Related amounts not offset

Amounts subject
Gross Amounts to master netting Net Amount
arrangements

As at March 31, 2017

Other nancial assets

Derivative not designated as hedges

- Foreign exchange forward contracts 4 (4) -

Other nancial liabilities

Derivative Financial Liabilities

Foreign exchange forward contracts 239 (4) 235

As at March 31, 2016

Other nancial assets

Derivative not designated as hedges

- Foreign exchange forward contracts 4 (4) -

Other nancial liabilities

Derivative Financial Liabilities

Foreign exchange forward contracts 103 (4) 99

As at April 1, 2015
Other nancial liabilities
Derivative Financial Liabilities
Foreign exchange forward contracts 52 - 52

Master netting arrangements - not currently enforceable

Agreements with derivative counterparties are based on ISDA Master Agreement. Under the terms of these arrangements, only
where certain credit events occur (such as default), the net position owing/receivable to a single counterparty in the same
currency will be taken as owing and all the relevant arrangements terminated. As the group does not presently have a legally
enforceable right of set-off, these amounts have not been offset in the balance sheet, but have been presented separately in the
table above.

52 Employee share based payments

Certain employees of the group have been granted Long-Term Incentive Plan (LTIP) namely - Stock Appreciation Rights (SAR),
Performance Stock Units (PSU), and Restricted Stock Units (RSU) by the Ultimate Parent Company United Technologies
Corporation (UTC).
- SARs are the grant of a “right” to acquire UTC shares based on the appreciation in value of a fixed number of shares.
- PSUs are units (representing one UTC Share) transferred to the employee subject to the satisfaction of certain performance
conditions.
- RSUs are units (representing one UTC Share) transferred to the employee at the end of the vesting period.

Generally, stock appreciation rights and stock options have a term of ten years and a minimum three-year vesting period. LTIP
awards with performance based vesting generally have a minimum three-year vesting period and vest based on performance
against pre-established metrics. The fair value of each option award is estimated on the date of grant using a binomial lattice
model.

In accordance with Note 3 (j), the group has recognised an employee benefit expense towards share based payment of Rs. 387
lakhs (March 31, 2016: Rs 214 lakhs) with a corresponding increase in Other Equity as equity contribution from the Ultimate
Holding Company.

141
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

53 Transition to Ind AS:

These are the group’s first standalone financial statements prepared in accordance with Ind AS.

The accounting policies set out in Notes 2 and 3 have been applied in preparing the financial statements for the year ended
March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in
the preparation of an opening Ind AS balance sheet at April 1, 2015 (the group’s date of transition). In preparing its opening Ind
AS balance sheet, the group has adjusted the amounts reported previously in financial statements prepared in accordance with
the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant
provisions of the Act ("Previous GAAP"). An explanation of how the transition from previous GAAP to Ind AS has affected the
group’s financial position, financial performance and cash flows is set out in the following tables and notes.

A Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Indian
GAAP to Ind AS.
Ind AS optional exemptions
1) Deemed Cost
Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as
recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as
its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38.

Accordingly, the Group has elected to measure all of its property, plant and equipment and other intangible assets at their
previous GAAP carrying value.

2) Share based payments

A first-time adopter is not required to apply Ind AS 102 Share-based Payment to equity instruments that were vested on or
before the date of transition to Ind AS.
Accordingly, the Group has accounted only for the unvested options granted by the parent outstanding as on transition date.

3) Business combinations
"Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the
transition date. This provides relief from full retrospective application that would require restatement of all business combinations
prior to the transition date."

The group elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business
combinations occurring prior to the transition date have not been restated. The group has applied same exemption for investment
in associates and subsidiary.

Ind AS mandatory exceptions

1) Estimates
An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the
same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is
objective evidence that those estimates were in error.
Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous
GAAP. The Group made estimates for impairment of financial assets based on expected credit loss model.
2) Classication and measurement of nancial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and
circumstances that adjusts at the date of transition to Ind AS.

3) Non - Controlling interests

Ind AS 110 requires entity to attribute the profit or loss and each component of other comprehensive income to the owners of the
parent and to the non-controlling interest. This requirement needs to be followed even if this result in the non-controlling interest
having a defecit balance. Ind AS 101 requires the above requirement to be followed propsectively from the date of transition.
Consequently, the group has applied the above requirement prospectively.

B Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent
the reconciliations from previous GAAP to Ind AS.

142
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Reconciliation of total Equity as per Previous GAAP and Ind AS

Description Notes to rst As at As at

time adoption March 31, 2016 April 1, 2015
Total equity as per Previous GAAP 81,573 87,115
Add:
Proposed dividends
(including dividend distribution tax) 8 13,502 2,132

Finance income recognised on effective 164 99

4
interest rate basis on security deposits

Finance income recognised on effective 61 68

4
interest rate basis on Employee loans

Fair valuation of Product

6 153 16
Upgradation Provision

Less:

Impact due to change in Revenue 1 (1,531) (534)

recognition policy in line with Ind AS

Allowance on account of expected credit 5 (419) (318)

losses on trade receivables

Rent recognised over lease period 4 (122) (120)

towards interest free security deposits

Employee cost recognised over 4 (70) (79)

employee loan period

Mark to Market adjustment 2 (100) (27)

on derivative contracts
Others (17) (24)
Deferred tax impact of
9 538 310
Ind AS adjustments
Deferred Tax Liability on Dividend
Distribution Tax on undistributed 9 (31) (1)
profit of associate

Total 12,128 1,522

Total equity as per Ind AS 93,701 88,637

143
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)
Reconciliation of total comprehensive income for the year ended March 31, 2016

Description Notes to rst For the year

time adoption ended March 31, 2016
Prot after tax as per previous GAAP 13,645

Adjustments:

ADD:
Finance income recognised on effective
interest rate basis on security deposits 4 65

Finance income recognised on effective

interest rate basis on Employee loans 4 9

Fair valuation of Product Upgradation Provision 6 136

Remeasurements of the net defined benefit plans 3 242
Others 6
Less:
Impact due to change in Revenue recognition
1 (996)
policy in line with Ind AS

Allowance on account of expected credit losses on trade receivables 5 (102)

Rent recognised over lease period towards

4 (2)
interest free security deposits

Employee cost recognised over employee loan period 4 (7)

Mark to Market adjustment on derivative contracts 2 (72)

Share based payments 7 (214)

Deferred Tax Liability on Dividend Distribution

(30)
Tax on undistributed profit of associate

Deferred tax impact of Ind AS adjustments 9 143

Net Prot as per Ind AS for the year 12,823

Items that will not be reclassified to Statement of Profit and Loss -

Actuarial loss arising from remeasurements
3 (243)
of post employments benefits

Deferred tax relating to this item 9 85

Share of other comprehensive income of associates
accounted using equity method (1)

Other comprehensive income, net of income tax (158)

Total comprehensive income as per Ind AS 12,664

Cash ow reconciliation:

The impact of Ind AS adoption on the Standalone Statement of cash flows for the year ended March 31, 2016
Net increase/ Cash and cash
Net cashow Net cashow Net cashow (decrease) Cash and cash
Particulars from Operating from Investing from Financing equivalents as equivalents as
in cash and at April 1, 2015
activities activities activities cash equivalents at March 31, 2016

Previous GAAP 6,450 4,600 (7,796) 3,255 1,03,887 1,07,142

Ind AS adjustments 159 (125) 24 58 - 58
Ind AS - Net cashflows 6,291 4,726 (7,820) 3,197 1,03,887 1,07,084

144
OTIS ELEVATOR COMPANY (INDIA) LIMITED
Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

Notes to the reconciliation

1 Revenue
"Along with sale of products, the group generally provides a free services/maintenance to its customers. Under previous GAAP,
provision was created for the expected cost of providing free services/ maintenance. Under Ind AS, instead of creating a
provision towards cost of free services/ maintenance, fair value of revenue relating to free service/ maintence is deferred and
recognised over the service period.

Further, under previous GAAP, revenue from repairs job was recognsied upon completion of job. Under Ind AS, revenue from
repairs jobs is recognised under percentage of completion method."

2 Mark to market on forward contracts

The group uses forward contracts to hedge its risks of net exposure associated with foreign currency fluctuations. Under previous
GAAP, the premium or discount arising at the inception of forward exchange contracts entered into to hedge an existing
asset/liability, was amortised as expense or income over the life of the contract. Under Ind AS, all transactions have been marked
to market at period end.

3 Remeasurement of post-employment benet obligations

Under Ind AS, remeasurements of post employment benefits i.e. actuarial gains and losses and the return on plan assets,
excluding amounts included in the net interest expense on the net defined benefit liability, are recognised in other comprehensive
income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the Statement of Profit
and Loss for the year.

4 Security deposits and Loans to employees

Under the previous GAAP, interest free lease security deposits and employee loans were recorded at their transaction value.
Under Ind AS, all financial instruments are required to be measured at their fair value on initial recognition. Accordingly, security
deposits and employee loans have been fair valued under Ind AS. Difference between transaction value and fair value has been
recognised as prepaid expenses. Prepaid expenses is amortised over the lease term or loan term and notional interest income is
recognised on security deposits and employee loans.

5 Trade Receivables
Unlike the previous GAAP, the group has applied expected credit loss model for recognising allowance for doubtful debts, as per
the requirements of Ind AS 109.

6 Provisions
Under the previous GAAP, discounting of provisions was not allowed. Under Ind AS, provisions are measured at discounted
amounts, if impact of time value is material. Accordingly, non-current provisions for Product Upgration have been discounted to
their present values.

7 Employee share based payments

The ultimate parent group has granted certain equity settled stock options to the senior employees of the group, without any
cross charge. Under Ind AS, cost of these stock options are recognised over the vesting period, based on their grant date fair
value, with corresponding adjustment to equity.
8 Proposed dividend
Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of
the financial statements were considered as adjusting events. Accordingly, provision for proposed dividends was recognised as
liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

9 Deferred taxes
Under Ind AS, deferred tax has been recognised on the adjustments made on transition to Ind AS and undistributed profit of
associate.

10 Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a
standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in
the Statement of Profit and Loss as 'Other Comprehensive Income' includes remeasurements of defined benefit plans. The
concept of other comprehensive income did not exist under previous GAAP.

11 Retained earnings
Retained earnings as at Aprill 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

12 Bank Overdrafts
Under Ind AS, bank overdrafts payable on demand and which form an integral part of the cash management process are
included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, bank
overdrafts were considered as part of liabilities and movement in bank overdrafts were shown as part of Operating Activities.

145
Annual Report 2016 - 2017 CONSOLIDATED

OTIS ELEVATOR COMPANY (INDIA) LIMITED

Notes forming part of the Consolidated nancial statements as of and for the year ended March 31, 2017
(All amounts are in Rupees in Lakhs, except otherwise as stated)

54 Recent Accounting Pronouncements 

Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules,
2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, 'Share-based Payment'. These amendments
are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ‘Statement
of cash flows’ and IFRS 2, 'Share-based payment', respectively. The amendments are applicable to the company from April 1,
2017.

Amendment to Ind AS 7: ‘Statement of cash flows’:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate
changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes,
suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from
financing activities, to meet the disclosure requirement.

The Group is evaluating the requirements of the amendment and the effect on the financial statements.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled
awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity settled awards.
Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market performance
conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the
amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the
result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date
of the modification. Further, the amendment requires the award that include a net settlement feature in respect of withholding
taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity
settlement.

The group is evaluating the requirements of the amendment and the effect on the financial statements.

The notes are an integral part of the consolidated financial statements.

For Price Waterhouse & Co Bangalore LLP For and on behalf of the Board of Directors
Firm Registration No. 007567S/S-200012
Chartered Accountants
Sebi Joseph Suma P N
Managing Director Director
Asha Ramanathan
DIN 05221403 DIN 05350680
Partner
Membership No : 202660 Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai Place: Mumbai
Date: August 17, 2017 Date: August 10, 2017

146
 Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the nancial statement of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries
(Information in respect of each subsidiary to be presented with amounts in Rs. Lakhs)
SI. No. Particulars Details
1 Name of the subsidiary Supriya Elevator Company
(India) Limited
Reporting period for the subsidiary concerned,
2 NA
if different from the holding company’s reporting period
Reporting currency and Exchange rate as on the last date of
3 NA
the relevant Financial year in the case of foreign subsidiaries
4 Share capital 269
5 Reserves & surplus (1053)
6 Total assets 520
7 Total Liabilities 1304
8 Investments 0
9 Turnover 1493
10 (Loss) / Profit before taxation (208)
11 Provision for taxation 0
12 (Loss) / Profit after taxation
(208)
13 Proposed Dividend -
14 % of shareholding
100
Notes:
1 Names of subsidiaries which are yet to commence operations :None
2 Names of subsidiaries which have been liquidated or sold during the year : None

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Name of associates Trio Elevators Co (India) Limited
1 Latest audited Balance Sheet Date 31st March 2016
2 Shares of Associate/Joint Ventures held by
the company on the year end
No. 2,88,550
Amount of Investment in Associates 144
Extend of Holding % 19.90
3 Description of how there is significant influence Participation in the Board of Directors
4 Reason why the associate is not consolidated NA
Net worth attributable to shareholding as per latest
5 1,456
audited Balance Sheet as on 31st March 2016
6 Profit/Loss for the year March 2017 ( Unaudited)
Considered in Consolidation 141
Not Considered in Consolidation -

Notes:
1. Names of associates or joint ventures which are yet to commence operations: None
2. Names of associates or joint ventures which have been liquidated or sold during the year:None

For and on behalf of the Board of Directors

Sebi Joseph Suma P N

Managing Director Director
DIN 05221403 DIN 05350680
Mitesh Mittal Sanu Kapoor
Chief Financial Officer Company Secretary
Place: Mumbai
Date: August 10, 2017

147
 OTIS ELEVATOR COMPANY (INDIA) LIMITED
Reg. Office: 9th Floor, Magnus Towers, Mindspace, Link Road, Malad (W), Mumbai – 400064, Maharashtra
Tel: 91-22-2844 9700/ 66795151 Fax: 91-22- 2844 9791
Website: www.otis.com
CIN: U29150MH1953PLC009158

PROXY FORM
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014]

E-mail ID:
Name of the Member(s):
Folio No/ Client Id:
Registered Address: Dp ID :

I/We, _______________________________being the Member(s) of__________________shares of the above named Company,

hereby appoint:

1) Name:______________________Address: ________________________________________________________
E-mail id ___________________________ or failing him
2) Name:______________________Address: ________________________________________________________
E-mail id ___________________________ or failing him
3) Name:______________________Address: ________________________________________________________
E-mail id ___________________________ or failing him
and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the
63rd Annual General Meeting of the Company, to be held on Friday, September 22, 2017, at 10:30 am at Senate 2, Grand
Sarovar Premiere, A. K. Plaza, Veer Savarkar Flyover, S. V. Road, Goregaon (W), Mumbai – 400 062, and at any adjournment
thereof in respect of such resolutions as are indicated below:

Resolution Particulars
No. Optional*
Ordinary Business: For Against
1 To consider and adopt :
(a) The Audited Standalone Financial Statements of the Company for the
Financial year ended March 31, 2017 together with the reports of the
Board of Directors and Auditors thereon and
(b) The Audited Consolidated Financial Statements of the Company for the
financial year ended March 31, 2017 together with the report of the
Auditors thereon.
2 To appoint a Director in place of Mr. N K Mohanty (DIN: 07220804), who retires by
rotation at this meeting and being eligible offers himself for re-appointment.
3 To appoint Auditors and fix their remuneration.
Special Business:
4 To re-appoint Mr. Sebi Joseph (DIN: 05221403) as Managing Director of the Company.
5 To appoint Ms. Suma P N (DIN: 05350680) as the Whole-time Director of the Company.
6 To ratify remuneration payable to the Cost Auditors for the Financial Year 2017-18.
7 To approve payment of Commission to the Independent Directors subject to an overall
ceiling of 1 (one) % of the net profits of the Company.

Affix Re.1
Signed this day of 2017 Signature of Shareholder Revenue
Stamp

Signature of 1st Proxy holder Signature of 2nd Proxy holder Signature of 3rd Proxy holder

Notes:

1.The Proxy need not be a Member of the Company.

2.This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not
less than 48 hours before the commencement of the Meeting.

3. It is optional to put an 'x' in the appropriate column against the resolutions indicated in the box. If you leave the 'For' or 'Against'
column blank against any or all Resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.

4. In case of Joint holders, the signature of any one holder will be sufficient, but names of all the joint holders should be stated.

149
 OTIS ELEVATOR COMPANY (INDIA) LIMITED
Reg. Office: 9th Floor, Magnus Towers, Mindspace, Link Road, Malad (W), Mumbai – 400064, Maharashtra
Tel: 91-22-2844 9700/ 66795151 Fax: 91-22- 2844 9791
Website: www.otis.com
CIN: U29150MH1953PLC009158

ATTENDANCE SLIP

DP ID Client Id

Regd. Folio.No. No. of Shares held

NAME AND ADDRESS OF THE SHAREHOLDER:

rd
I hereby record my presence at 63 Annual General Meeting of the Company held at Senate 2, Grand Sarovar Premiere, A. K.
Plaza, Veer Savarkar Flyover, S. V. Road, Goregaon (W), Mumbai – 400 062 on Friday, September 22, 2017, at 10:30 a.m.

My /our e-mail ID for e-service of documents is

Name of the Proxy:

SIGNATURE OF THE SHAREHOLDER/PROXY

Note:
1) Only Shareholder / Proxyholders can attend the meetings.
2) Shareholders / Proxyholders are requested to bring this Attendance Slip to the Meeting and hand over the same at the entrance
duly signed.
3) Bodies Corporate who are members may attend through their authorized representatives appointed under Section 113 of the
Companies Act, 2013.
4) Members/ Proxyholders should bring his/her copy of the Annual Report for reference at the Meeting.

ELECTRONIC VOTING PARTICULRS

EVSN USER ID # DEFAULT PAN

#If you have not registered/ updated your PAN with the Company/ Depository Participant, please use the DEFAULT PAN under
PAN field to login for E-Voting.

*Please use your actual PAN, if you have already registered / updated your PAN with Company / Depository Participant.

Note: For detailed E-Voting instructions, please read “Instructions for Shareholders voting electronically” at note no. 11 of the Notice
of 63rd Annual General Meeting dated August 10, 2017

E-Voting facility is available during the following period:

Commencement of E-Voting September 19, 2017 at 9.00 a. m
End of E-Voting September 21, 2017 at 5.00 p.m.

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