Honeywell Automation India Limited submitted the disclosure regarding the Notice of Intent to Levy and Notice of Rights to a Hearing received from Department of the Treasury, Internal Revenue Service, Houston, United States for not reporting details of Affordable Care Act (ACA) compliant insurance offered to Honeywell Project assignees based in US to Internal Revenue Service. Please note that the delay in intimation is on account of delay in receiving intimation from the US counterpart as also on account of connecting with US lawyers to understand and take follow up actions. Notice received from the Authority for payment of fines and Penalties under IRC Section 6331 on account of failure to file & furnish Form 1094 and Form 1095 for Fiscal Year 2020 to Internal Revenue Service confirming the provision of ACA (Affordable Care Act) compliant insurance issued to Project Assignees to the US.

The Company has provided ACA (Affordable Care Act) compliant insurance to project assignees in USA. However the same was not reported to Internal Revenue Service. There is a financial impact of $84,016.03, no impact on operations and/or other activities of the Company due to the Notice.

This Notice is currently appealable, and the appeal would be filed for abatement of penalties as ACA compliant insurance has been offered (but not reported to IRS) as required.