ACROSS THE PAGES CORPORATE OVERVIEW 02-55 DRIVEN BY VALUES INSPIRED BY THE FUTURE 2 VOLTAS AT A GLANCE 4 VALUE CREATION PROCESS 14 Business Model OUR QUEST FOR SUSTAINABLE PROFITABLE GROWTH 16 Financial Capital BEING OPERATIONALY EXCELLENT IN ALL WE DO 20 Manufactured Capital COVER NOTE BUILDING CUSTOMER DELIGHT 26 The cover features images of our consumers who Intellectual Capital inspire us each day. They constantly drive us to explore FOSTERING A HIGH-PERFORMANCE CULTURE 34 opportunities that help us improve and move closer Human Capital to our goals. With consumer centricity at the core of our business CREATING ENDURING VALUE FOR ALL 40 strategy, the images on the cover resonate our brand Social and Relationship Capital promise of providing comfort and convenience to our STEPPING TOWARDS A LOW CARBON FUTURE 48 consumers across the diversified industries that we Natural Capital operate in. The upward arrow formation captures the direction of our progress fortified by the organisational RISKS AND MITIGATION 52 theme - Driven by Value, Inspired by The Future. Finally, accentuating the visual and thematic appeal, the BOARD OF DIRECTORS 54 subtle use of blue and green tinges across both the CORPORATE MANAGEMENT TEAM 55 front and back cover, reflect our commitment towards building a trusted and healthy brand. STATUTORY REPORTS 56-142 Please fnd our online version at MANAGEMENT DISCUSSION AND ANALYSIS 58 https://voltas.com/inv_fnance HIGHLIGHTS 80 REPORT OF THE BOARD OF DIRECTORS 82 REPORT ON CORPORATE GOVERNANCE 110 BUSINESS RESPONSIBILITY REPORT 133 Scan to download FINANCIAL STATEMENTS 143-315 CONSOLIDATED FINANCIAL STATEMENTS 144 Disclaimer: This document contains statements about expected future events and financials of Voltas Limited, STANDALONE FINANCIAL STATEMENTS 234 which are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions and other forward-looking statements may not prove to be accurate. Investor information Readers are cautioned not to place undue reliance on CIN: L29308MH1954PLC009371 forward-looking statements as several factors could cause assumptions, actual future results and events to differ BSE Code: 500575 materially from those expressed in the forward-looking NSE Symbol: VOLTAS statements. Accordingly, this document is subject to the Bloomberg Code: VOLT:Natl disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the Management AGM Date: 21 August, 2020 Discussion and Analysis section of this Annual Report. About this Report At Voltas Limited, we are pleased to present our Integrated Annual Report. This is one of our principal communication documents catering to all our stakeholders. This Report contains comprehensive information on our operational and fnancial performance and how these infuence our strategic direction, resulting in our ability to create sustainable value. Our Approach to Reporting Reporting Standards and Through this Report, we aspire to provide Frameworks our stakeholders, an all-inclusive depiction of In this report, we have attempted to bring in the organisation’s value creation ability using more transparency and accountability through both financial and non-financial resources. The the disclosures and information provided Report provides insights of our key strategies, in the initial pages of the Report, following operating environment, material issues the guiding principles of the International mitigation strategies, operating risks and Integrated Reporting Council (IIRC). The other opportunities, governance structure and our statutory reports, including the Director’s approach towards long-term sustainability. Report, Management Discussion and Analysis (MD&A) section, the Corporate Governance Reporting Period, Scope and Report and the Business Responsibility Report, Boundary are in line with the Companies Act, 2013, The reporting period for this Integrated Report Securities Exchange Board of India (Listing is 1 April, 2019 to 31 March, 2020. It provides Obligations and Disclosure Requirements) an overview of our operations and business Regulations, 2015, and the prescribed development activities. The Report, further, Secretarial Standards. covers information on our business segments in India and abroad, along with associated Management Assurance activities that enable short, medium, and long- Our Company’s senior management, under term value creation. supervision of the Managing Director & CEO, has reviewed the Report content. The Board members of our Company have provided the required governance oversight. Integrity | Responsibility | Excellence DRIVEN BY | Pioneering | Unity Five words, one emotion. These are not just words. These are values embodying VALUES the constituents of the Tata Code of Conduct (TCOC), INSPIRED BY THE a guiding light for us in the conduct of our business. Every year, Voltas files an Annual Compliance Report to the Tata Group Ethics Office. We are delighted to share that the relative position in terms of process FUTURE deployment/implementation maturity for business ethics at Voltas is at the highest level. As a trusted market leader, our values go hand in hand with our future aspirations. We have a long and successful track record of growth, captured across various domestic and international geographies, delivering numerous innovative ` 7,889 engineering solutions and products. However, we crores believe, this is just the beginning. Our journey of Total income transformation as a conglomerate across businesses, people and culture, depicts our approach of taking steps today, towards a brighter tomorrow. Our growth is underpinned by several proactive measures. These steps raise our sustainability quotient, through ` 744 provision of innovative, insight-driven and energy crores efficient solutions for a promising future. Proft before tax ` 521 crores Proft after tax 2 Voltas Limited Corporate Overview Statutory Reports Financial Statements Annual Report 2019-20 3 Corporate Overview Statutory Reports Financial Statements VOLTAS AT A GLANCE A part of the prestigious USD 113 billion conglomerate, the Tata Group, Voltas Limited is among the largest Indian air conditioning companies. We are also one of the leading engineering solutions provider and project specialists in the world. Since our incorporation in 1954, we have been committed to ofer world-class solutions and value through smart engineering to our customers and industries. We operate in three business segments: Unitary Products, Engineering Projects and Engineering Products & Services. Through a 50:50 Joint Venture Company between Voltas Limited and Arçelik, we are now present in the Home Appliance segment as well. A proud moment: Inauguration of the Voltas Beko factory at Sanand 4 Voltas Limited Annual Report 2019-20 5 Corporate Overview Statutory Reports Financial Statements BUSINESS VERTICALS UNITARY PRODUCTS Voltas has been synonymous with cooling products in India for over six decades. We are well known for the quality of our products, our range, extensive reach, popular advertising 2 campaigns and sensible pricing. As market leaders in the Air Conditioners category, we million Units sold have always been in the forefront of innovation in the cooling and refrigeration segment. 19,000+ Touch points Product ofering: Air Conditioners (ACs) Air Coolers Freezers Visi Coolers Water Dispensers Other commercial refrigeration products Market share (%) ROOM AIR-CONDITIONERS INVERTER AIR-CONDITIONERS 23.7 24.2 20.9 21.4 22.1 21.9 16.6 7.7 7.2 6.8 2015-16 2016-17 2017-18 2018-19 2019-20 2015-16 2016-17 2017-18 2018-19 2019-20 Undisputed MARKET LEADER Fastest growing segment contributing since 2012 to 52% of the overall AC sales in 2019-20 4 Voltas Limited Annual Report 2019-20 5 Corporate Overview Statutory Reports Financial Statements ENGINEERING PROJECTS This business vertical operates both within the country – Domestic Projects Group (DPG), 5,000+ and overseas – International Operations Business Group (IOBG). Customer sites actively managed across India 6 Countries that IOBG operated in 2019-20 Product ofering: As a part of our Domestic Projects Business (DPG), we offer integrated end-to-end solutions in electromechanical projects. We extend Mechanical, Electrical and Plumbing (MEP) services in the areas of infrastructure and built environment. These comprise metro stations, airports, malls, hotels, hospitals and educational institutions. Further, we also have a diversified portfolio of rural electrification (including solar) and water treatment plants across Government as well as private sectors. Voltas’ (DPG) operations and maintenance team manages over 5,000 customer sites across India. The business vertical also offers retrofit solutions for HVAC systems and a range of other services like Energy Auditing, Energy Performance Indexing & Retrofitting, Remote Monitoring and control, etc. The International Operations Business Group of Voltas is a leading turnkey Electromechanical Solutions and Services provider. We are celebrated as the preferred MEP contractor for mid to large-size projects in various GCC countries such as UAE and Qatar. With over four decades of experience, the international projects business has completed over 130 projects across 35+ countries. Voltas Commercial Products factory in Waghodia 6 Voltas Limited Annual Report 2019-20 7 Corporate Overview Statutory Reports Financial Statements