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Company Information

Home » Market » Company Information

Bharat Electronics Ltd.

Aug 23
99.85 +6.55 (+ 7.02 %)
VOLUME : 1040136
Prev. Close 93.30
Open Price 93.55
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
Aug 23
99.90 +6.60 (+ 7.07 %)
VOLUME : 17316377
Prev. Close 93.30
Open Price 93.80
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
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Market Cap. ( ₹ ) 24341.56 Cr. P/BV 2.64 Book Value ( ₹ ) 37.80
52 Week High/Low ( ₹ ) 119/73 FV/ML 1/1 P/E(X) 12.90
Bookclosure 24/08/2019 TTM EPS ( ₹ ) 0.00 Div Yield (%) 2.05
You can view full text of the latest Director's Report for the company.
Year End :2018-03 

To the Members,

The Directors take pleasure in presenting their Report and the Audited Financial Statements for the financial year ended 31 March 2018 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

Financial Results and Performance Highlights

A summary of the Company’s financial results is given below :

(Rs. in Lakhs)




Value of Production



Turnover (Gross)



Profit Before Depreciation, interest and Tax



Finance Cost



Depreciation & Amortisation



Profit Before Tax



Provision for Tax



Profit After Tax



Other Comprehensive Income / (Loss)



Total Comprehensive Income



Dividend paid



Tax on Dividend



Transfer to General Reserve



Other equity (Including Reserves & Surplus)



Net Worth



Earnings Per Share (in Rs.)



Book Value Per Share (in Rs.)



* adjusted due to issue of bonus shares in 2017-18.

Distribution of Value of Production for 2017-18 is given below :


Amount (Rs. in Lakhs)





Employee Cost



Other Expenses (Net)



Depreciation & Amortisation



Provision for Tax



Profit After Tax






Company’s turnover (Gross) for the year 2017-18 has increased to Rs.1,008,484 Lakhs from Rs.882,470 Lakhs in 2016-17, registering a growth of 14.28%. Profit after Tax for the year is Rs.139,929 Lakhs as against Rs.154,762 Lakhs in the previous year. Turnover from indigenously developed products is 89%. Supplies to the defence contributed to 85% of turnover as against 88% in 2016-17.


The Board of Directors of the Company has formulated a Dividend Distribution Policy keeping in view the provisions of SEBI (LODR) Regulations, 2015, the Companies Act 2013 and also taking into consideration the guidelines issued by SEBI, DPE, DIPAM, Ministry of Finance and also other guidelines to the extent applicable to the Company. The Policy is annexed to this Report as “Annexure 1” and also placed on the Company’s website at http://bel-india. in / ContentPage.aspx?MId=17&CId=527&Lid =1&link=527

The Board of Directors has recommended a Final Dividend of Rs.0.40/- per equity share (40%), Rs.9,746 Lakhs for the year 2017-18. An interim dividend of Rs.1.60 per equity share (160%), Rs.39,312 Lakhs was paid for the year 2017-18 in February 2018. Thus, the total dividend for the year 2017-18 is Rs.2/- per equity share (200%), Rs.49,058 Lakhs (excluding dividend distribution tax).

Amount Transferred to Reserves

An amount of Rs.40,000 Lakhs is transferred to General Reserves for the financial year 2017-18.

Share Capital

The Company’s paid-up Equity Share Capital as on 31 March 2018 was Rs.24,366 Lakhs.

During the year 2017-18, your Company issued bonus shares in the ratio of 1:10 (one fully paid-up equity shares of Rs.1/each for every ten fully paid-up equity shares held) to all its shareholders in the month of October 2017. As a consequence, the paid-up share capital of the Company increased from Rs.22,336 Lakhs to Rs.24,570 Lakhs.

Subsequently, your Company bought back 20,397,780 equity shares of Rs.1/- each fully paid-up at price of Rs.182.50 per equity share in the month of March 2018 consequent to which the paid-up equity share capital of the Company stands reduced to Rs.24,366 Lakhs as on 31 March 2018.

The details of Directors and Key Managerial Personnel’s shareholdings in the Company as on 31 March 2018 is given below :

Sl. No.



No. of equity shares held


Mr M V Gowtama

Chairman and Managing Director



Dr Ajit T Kalghatgi

Director (Research & Development)



Mr Nataraj Krishnappa

Director (Other Units)



Mrs Anandi Ramalingam

Director (Marketing)



Mr R N Bagdalkar

Director (Human Resources)



Mr Koshy Alexander

Director (Finance)



Mr S Sreenivas

Company Secretary


The Company has not issued any convertible security during the year.

Major Orders Executed

Major Projects executed during the year for tri services and non-defence customers include : Integrated Air Command and Control System to Airforce, Weapon Locating Radar to Army, Hand Held Thermal Imager to Army, Akash Weapon System to Army, Fire Control System to Navy, Integrated Communication Systems to Navy, 3-D Tactical Control Radar to Army, Electronic Warfare Systems to Navy, Integrated Submarine Sonar Suite to Navy, Home Land Security to ONGC, L70 Gun Upgrade to Army, Electronic Voting Machine (EVM) & Voter Verifiable Paper Audit Trail (VVPAT) to ECI, Schilka Gun Tank upgrade to Army, Intelligence Gathering Systems to Airforce.


Your Company has been giving an increased thrust towards harnessing the export potential of defence electronics products and systems which represent its core area of business. BEL has been exporting various products and systems to various friendly countries. Apart from this BEL is interacting with electoral commissioners of various democratic countries to market Electronic Voting Machines. Having established a Coastal Surveillance System (CSS) for few neighboring countries, BEL is interacting with Ministry of External Affairs on a regular basis for supply of CSS to other friendly countries of India.

BEL is focusing on the various opportunities in the area of helping OEM’s to meet offset obligations in various RFPs of MoD on account of offset policy incorporated in the Defence Procurement Procedure. In this regard BEL is closely working with various major foreign Aerospace and Defence Companies. BEL has identified contract manufacturing (build to print and build to spec) to foreign OEM’s as one of the areas of emerging export opportunities. Further efforts are being made to establish long term supply chain relationship with global players.

Company has achieved an export sale of US$ 26.3 Million during 2017-18, to various countries, viz., Sri Lanka, Myanmar, Maldives, Mauritius, Vietnam, Indonesia, Israel, Switzerland, Germany, Sweden and USA. Major Products / Systems exported are Advanced Composite Communication System (ACCS), Compact Airborne Surveillance System (CoMPASS), Bharti Radio, Cable Looms Mechanical Parts, Coastal Surveillance System, Spares for TRS 2215 Radar & V/UHF Radio.

The decline in export sale is mainly due to the nonestablishment of Letter of Credit by customer for various Naval Systems contracted for Project 21, Offshore Patrol Vessels. The transformation in political and economic scenarios in the Myanmar, Sri Lanka, and Maldives was another factor contributing to reduced exports in the current year.

Initiative taken to increase exports by development of new markets, for products & services during the financial year 2017-18 :

- Marketing Offices Abroad

- BEL has put in efforts for increasing the business opportunities in South East Asia and Middle East by incessant engagement with customers.

- A Marketing office in Vietnam was established during 2017-18.

- During 2018-19, the following Marketing Offices are proposed to be established in : Muscat - Oman; Colombo - Sri Lanka; Yangon - Myanmar.

- Strategic Alliance with the Indian Platform Manufacturers

BEL has initiated discussions and process for signing agreements with the following major Indian Platform manufacturers :

- Goa Shipyard Limited, Goa

- Mazagaon Dockyard Limited, Mumbai

- Larsen & Toubro Limited, Mumbai

- Mahindra Defence Systems Limited, Mumbai

* Strategic Alliance with the Foreign OEMs

Proposed strategic alliance with foreign OEMs to address global markets by offering the best value proposition

- SAAB, Sweden - Marketing agreement for various equipments.

- ELOP, Israel - Electro-optics.

- Elbit, Israel - Airborne EW, TIFCS, SAR, HMDS.

- Controp, Israel - Night Vision and Laser Equipment.

- Meprolight, Israel - Co-production agreement for LRFs, GLS, Day Sights for small Arms.

- Beretta, Italy - MoU for supplying of Reflex Sight and NVDs for Assault / Sniper Rifle for Global requirement.

- Thales - Radar for Rafale, EW Suite and Search Master Radar.

- Coastal Surveillance Systems to countries of Indian

Ocean Region :

- Submitted proposal for establishment of Coastal Surveillance System for Sultanate of Oman in response to a tender.

* Export Version of EVM and VVPAT

- BEL earlier exported EVMs and accessories to Namibia and now they have indicated the requirement of VVPAT. Botswana also has shown keen interest in obtaining EVMs and VVPATs.

- As per directives of the Election Commission of India, Export Versions of both the EVM and VVPAT are presently under development, qualification and certification.

The following were the scope for offset business during 2017-18 :

- F18 Flight Control Panel for Boing USA

- Cable Harness for Pilatus Switzerland

- EoSCoMPASS for Elop Israel

- G4 A Technical platform (Shelters) for SAAB Sweden

* An MoU has been signed with Thales, France for

Integration of the Air Borne Radar EW Suite for Rafale aircraft contracted by Dassault Aviation to Indian Air Force. Six modules have been ordered by Thales for necessary qualification. This is expected to be ramped up quickly in the coming years.

MoU with Government

Your Company has been signing a Memorandum of Understanding (MoU) every year with the Government of India, Ministry of Defence. Performance of BEL for the year 2016-17 has been rated as “Excellent” in terms of the MoU with the Government. The MoU rating for 2017-18 is under review by the Government.

Order Book Position

The order book of Company as on 01 April 2018 was around Rs.40,115 Crores. The order book comprises mainly major programs like Long Range Surface to Air Missile, Integrated Air Command Control System, Battlefield Surveillance System, Advanced Composite Communication System, Command Information Decision Support System, Commander Thermal Imaging Sights, Electronic Voting Machine (EVM) & Voter Verifiable Paper Audit Trail (VVPAT), Intelligence Gathering Systems, Weapon Locating Radar, Sonars etc.


During this year, your Company has enhanced shareholders value through Buyback of shares and higher dividend payout. The Company returned 5% of share capital and free reserves amounting to Rs.37,226 Lakhs to the shareholders. Apart from the final dividend of Rs.23,453 Lakhs (105%) for 2016-17 which was paid out in 2017-18, an interim dividend amounting to Rs.39,312 Lakhs (160%) was paid out in the month of February 2018 in respect of 2017-18.

The initiatives taken by your Company in taking up some major capital projects is progressing well and the outcome should strengthen the Company’s journey to a higher trajectory of turnover and growth. During the year, your Company has been able to meet all the incremental working capital requirements and most of the capital requirements through its internal accruals. Company has availed a term loan of Rs.10,000 Lakhs to fund its CAPEX requirements, out of which Rs.6,666 Lakhs is outstanding as on 31 March 2018. Your Company has retained the highest rating by ICRA for both short term and long term borrowing.

The Inventory position (net) of the Company as on 31 March 2018 was Rs.477,552 Lakhs as against Rs.490,501 Lakhs as on 31 March 2017. This works out to 181 days of value of production as on 31 March 2018 as against 206 days achieved as on 31 March 2017. This has been possible due to close monitoring of the inventory levels.

The position of trade receivables (net) as on 31 March 2018 was Rs.570,458 Lakhs as against Rs.435,488 Lakhs as on 31 March 2017. This works out to 206 days of turnover as against 180 days of turnover achieved during the previous year. The increase in trade receivables is mainly due to deferment of payments by the customers due to budget constraint.


The Company does not have any Public Deposit Scheme at present. However, the matured Public Deposit amount (collected prior to February 2006) with the Company was Rs.36.95 Lakhs as on 31 March 2018. Out of these 34 deposits amounting to Rs.36.50 Lakhs are not claimed or not paid as these accounts are frozen on advice by Karnataka Lokayukta, remaining mature deposits of Rs.0.45 lakh as on 31 March 2018 is unpaid due to in-sufficient documents / records produced by Depositors.

Research & Development

Research and Development (R&D) has been the core strength of BEL. Various Divisions of BEL are involved in developments of Strategic Components, Technology Modules, Subsystems, Products, Systems and System of Systems Apart from in-house efforts, BEL R&D Engineers are working with DRDO, ISRO, CSIR, other national Research Laboratories and Academic Institutes for Joint development. During 2017-18, R&D activities have been carried out in all the business segments namely, Missile Systems, Radars, Electronic Warfare, Avionics, Military Communication, Naval Systems, C4I systems, Electro-optics, Tank Electronics, GUN Upgrades, Civilian Equipments, Systems and components.

BEL has three-Tier R&D structure namely CRL, Central D&E and PD&IC and D&Es attached to SBUs / Units. As a Philosophy and Policy, these R&D Labs work in the identified technology and product area, with well documented three year R&D plans based on ROP / marketing forecast / TPCR and after due approval of budget / time by the competent authority.

In R&D, BEL has many challenges to overcome. Size, weight, power and quality requirements always push the R&D to the edge. At component level, R&D needs to work on the newer requirements of MMICs, highly integrated processor ICs, microwave super-components, etc. At product level, R&D needs to create configurable, multifunction and fault tolerant products. The System of Systems needs expertise in Project management along with system integration expertise. With short life of components, obsolescence is the issue to be on alert on all the time. All these challenges are addressed with well planned R&D initiatives, system driven obsolescence alert, training of R&D Manpower and in collaboration with external agencies.

The major development initiated in 2017-18 are next generation Weapon Systems, Smart elements of HLS, IIR Seekers, Indigenous CSS software, On-the -move Satcom with low profile Antenna, Satcom Man pack terminal, Electronic Sub-Systems for Twin Barrel 30 mm AD Gun, Advanced system for Identification of Friend & Foe for Weapon Systems, Upgraded Voice Control and Communication systems, Coastal Situation Awareness Radar, Ultra light-weight shelter and modular High Altitude Shelters.

Some of the major projects completed in 2017-18 are 3D Airport Radars, Electronic upgrade of gun systems, EOTS for a new Weapon System program, Weapon System Software Upgrade, Medium Power Radar, OPS shelter for Radar and Electronic Warfare System for Tethered Buoy.

During 2017-18, the R&D revenue expenditure was Rs.883 Crores and Capital expenditure was Rs.105 Crores, totaling to Rs.988 Crores, amounting to 9.79% of turnover. The turnover due to indigenous development efforts in 2017-18 is 89% of turnover.

The Important R&D Awards /recognitions received during 2017-18 are the Raksha Mantri Awards for Excellence for the year 2014-15 and 2015-16 in the categories of Indigenization, Design Effort, Institutional Award and Best Performing division of DPSUs and SODET awards for the years 2013-14, 2014-15 and 2015-16 in the categories of Technology Innovations and Technology Developments.

New Products developed :

1. Intelligence gathering System

It consists of one Control and three Receiver stations in Master-Slave mode to search, detect, monitor, record and process hostile emissions and locate the emitter

2. Gun Fire Control System (FCS) for ships

It is a gun FCS with up mast mountable compact Radar with Auto search - Works in auto / Control (controlled by CIAO) modes.

3. Advanced Communication network for ship

It is an advanced communication network providing quick & reliable ship-ship, ship-shore, ship-Air communication.

4. High Data Rate Ship Data Network

It is a Ship Data Network, providing a broadband network for VVD comm. It is a Backbone NW to connect ship combat systems, other ship systems, Gateway and Access switches.

5. Compact Airborne Transmitter

It is based n Coherent Master Oscillator Power Amplifier, with medium peak power and moderate duty cycle. The transmitter is designed for operation under Air borne conditions reliably.

6. Pedestal for AESA Radar

It is a Subsystem of a Fire Control System which detects, tracks target & positions gun at exact angle for engagement.

7. Radio with Communication on the Move capability for Weapon system

It is a radio which is capable of working in partial mesh network, supports medium speed mobility and also supports simultaneous operation in two different Bands simultaneously.

8. Multi Purpose Reflex Weapon Sight (MRWS)

It is a parallax free, compact, light-weight and rugged weapon sight for instant target acquisition.

9. Light Weight Portable Laser Target Designator (LWPLD)

It is a Target Designator with dual magnificent sight and night operation capability through TI (Thermal Imager). It is light weight and portable.

10. Vehicle mounted X Ray Baggage Inspection System

It is a Low bed 60X40 baggage machine (XBIS) mountable on vehicle, capable of scanning metal up to 30mm with high resolutions.

11. Electro Optic System - SCGC Topaz

It is an Electro Optic system installed on the patrol vehicles for surveillance at the sea.

12. Cdr TI Sight for T-72

State of the Art high resolution large format thermal imager based sights have replaced the obsolete Image intensifier tube based Commander Sights.

13. HHTI Bi Ocular

It is a Hand Held TI camera with night vision capability, working with Li-ion battery.

It has a multiple FoV lens with focus adjustments for better range capability.

14. Gunner TI Sight for T-90

It has continuous zoon lens, with improved detection capabilities.

15. EO system for Air Defence Radar

It is an Electro Optic system with zoom lens, Optical extender for TI sight, long range CCD and LAN compatibility.

16. Observation Unit for BoSS

It is a Day and Night camera and LRF with target localization capability for BSS.

17. Mine Field Recording System (MFRS)

MFRS is used to plot and record coordinates of any desired point on a mine field (ground) at which the MFRS is taken, with higher accuracy.

18. Radio Relay Upgrade (Low Band)

It is an upgrade to BEL’s existing Radio Relay which had limited data rate capability.

19. Secure Phone

In-house developed secure phone caters for secure voice, SMS, data and video. It has higher internal storage capacity.

20. Handheld Digital Compass

It provides stable heading info for the Infantry soldier of Indian Army by giving accurate bearing information of targets, storing and recalling of target angels. Facility is provided for map reading during night navigation. It is light weight and compact.

21. Multi Channel Encryptor Unit (MCEU)

It is a versatile encryptor with - Bulk encryption capabilities at different data rates.

22. Electronic Voting Machine-M3 (EVM-M3)

This is an upgrade to the Electronic Voting Machine developed by BEL, with enhanced security and tamper proof features, reduced size and self diagnostics features.

23. VVPAT-M3

This is an upgrade to the VVPAT machine with enhanced security and tamper proof features, built-in-display unit and code readout facility.

New Facilities Established During the Year

Company has been continuously modernizing its infrastructure to be in tune with the changing needs of the technology / products. Specific groups in all the units scan the technology changes that are taking place and identify new processes in the world market for acquisition. This enables the Company to maintain its infrastructure on par with international standards. During the year 2017-18, Company has spent Rs.634 Crores as part of CAPEX investment towards Modernization of Plant & Machinery, Test Instruments, R&D investments, infrastructure up-gradation etc.

Following are some of the major facilities established during the year :

- Solar PV Power Plant at Ordnance Factory, Medak (OFMK).

- BEL Academy to address the training needs of BEL employees, as well as of its customers and vendors / partners.

- Advanced EMC Testing Facilities having Anechoic Chamber. It can be used to carry out system level EMC testing for many projects of national importance.

- Near Field Antenna Test Range (NFTR) facility at BEL, Bengaluru for calibration and testing of Radars and communication antennas. The NFTR facility at Bengaluru is the third such set-up in BEL.

- High level Shock Testing Facility established at BEL, Bengaluru.

- Secured Manufacturing Test facility established in BEL, Bengaluru and Panchkula units for production of EVMs and VVPATs.

- State of the art Electronic Artillery Fuze manufacturing at BEL Pune.

SAP Implementation in BEL and other IT Initiatives

ERP- SAP was implemented in BEL in 2006-07 and all Business Processes in BEL are mapped in SAP. Over a period of time, BEL has matured in the core Modules of SAP like PP, MM, SD, QM, HR, FICO, PLM, PS etc, and many additional Modules like Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Business Intelligence (BI), File Life Cycle Management (FLM), Employee Self Service (ESS), Knowledge Management (KM), etc have been implemented successfully. BEL has implemented many of the processes in SAP which are not in the standard ERP modules like Standardization, Contract Management System for Engineering Services, Online Spares Order Management

System for Navy, Factory Complaint Management System, Township Management System, BEL Guest Management System, Employee Grievance System, Lead Management System, Vigilance Process, Visitors Management System etc. BEL has implemented Governance Risk and Compliance (GRC) module on a pilot scale in one of the SBUs and this will be implemented company wide from 2018-19.

The migration to GST tax system is totally integrated with SAP system. All requirements in form of returns like 3B, 1, etc are taken from the system directly without any manual activities outside system. The migration was zero step movement to new system without a single day discontinuity of business.

BEL implemented Real Time Information system in the form of e-mail and SMS to Stakeholders like Vendors, Customers, Management, Employees and Visitors. BEL implemented GST and Pay Revision of Executives in SAP completely by the inhouse IT team.

BEL SAP team has won the prestigious award of “Excellent Contribution” in the category of “Best Institutional Practice to Fight Corruption”.

BEL implemented Company wide, State of the Art, Multi Party Video Conferencing facility covering various locations across India. This has improved the efficiency and ease of Communication and Reviews.

BEL has implemented Air Gap concept between Internet and Intranet. Hence the Risk due to external cyber attacks on Information system which is on the intranet is avoided. BEL has released the upgraded Information Security Manual and Procedure in 2017-18. BEL complies with all Cyber Security guidelines issued by Ministry. Various initiatives have been undertaken to improve the Information Security.


Quality, Technology and Innovation are three guiding pillars of BEL’s business initiatives. Quality, being the first pillar, has been one of the focus areas for the Company. Quality initiatives have been taken up for improvement in performance related to Product Design, On-time-Delivery, Process Cycle Times, SPC, Quality Control etc. in order to enhance Quality of Products and Services rendered to customers.

The Company is committed for improvement of its activities through process approach in line with World-Class Quality Systems. All Units / Strategic Business Units (SBUs) / Common Services Groups (CSGs) are accredited to ISO 9001 Quality Management System (QMS) since early nineties. Seven Units / SBUs, viz. Ghaziabad, Panchkula, Kotdwara, Hyderabad, Military Communications, Electronics Warfare & Avionics and Export Manufacturing have upgraded their QMS to Aerospace Standard, AS 9100.

Units of the Company are committed to Environment Management System through ISO 14001 Certification. Ghaziabad Unit is accredited to OHSAS (Occupational Health Safety and Assessment Series) 18001.

The ISO 9001:2008 version for QMS and ISO 14001:2004 version for EMS have been revised to 2015 versions in September 2015. Similarly, AS 9001 Rev ‘C’ has been upgraded to Rev ‘D’ in October 2016. In order to upgrade these certifications in BEL, Awareness Training programmes, Lead Auditor Training programmes and Conversion Programme for Lead Auditors of older versions of Standards to newer versions of the Standards have been conducted for personnel from various SBUs / Units. During the year 2017-18, 9 Units / SBUs got upgraded to 2015 version of ISO 9001 and 4 Units / SBUs to Revision D of AS 9100.

Test Equipments Calibration and Maintenance departments of Bangalore Complex, Ghaziabad and Panchkula Units are certified by National Accreditation Board for Testing and Calibration Laboratories (NABL) in accordance with ISO / IEC 17025 Standard. Pune Unit manufacturing X-ray tubes is certified for ISO 13485 Standard for Medical Devices. Bharat Electronics Software Technology Centre (BSTC) at Bangalore Complex is CMMi level 5 certified. D&E - NCS and CRL -Ghaziabad are certified for CMMi level 3.

EFQM (European Foundation of Quality Management) Model for Business Excellence is being followed in BEL since 2002 as another approach for overall strategic and operational excellence to meet and exceed the needs & expectations of stakeholders and enhancement in competitiveness. Its deployment status was assessed in the Company through participation in ‘CII-EXIM Bank Award for Business Excellence’ in a phased manner. All Units / SBUs of BEL have achieved ‘Commendation for Strong Commitment to Excel’ status. Bengaluru, Ghaziabad and Kotdwara Units achieved next higher level i.e. ‘Commendation for Significant Achievement’.

Continual improvements in products and processes are being brought out through various approaches. One such approach is ‘Six Sigma methodology’. Junior and Middle level executives select Sig Sigma projects from different areas of concern related to products and processes to bring about improvements. In order to effectively implement Six-Sigma methodology and to bring in a culture of improvement through analytical approach, selected senior executives (16 persons) from the Units are periodically trained as ‘Black Belt’ by Indian Statistical Institute, Bengaluru. These Black Belts guide other executives (Green Belts) in their Six Sigma projects. 519 Six Sigma projects were completed in financial year 2017-18. Out of 35 Six Sigma projects nominated for Regional / National level Competitions, 21 projects received regional level awards and the balance 14 projects received National Level Championships awards.

The organization has facilitated involvement of Nonexecutives in the Quality Movement through Quality Control Circles (QCC). In the year 2017-18, 656 QCC Presentations for improvement in products and processes were made by various QCCs. Many QCC circles were nominated to participate in national competitions / conventions and all were adjudged for various categories of Awards. One of the QCCs, which won CMD’s Rolling Shield in the Inter Unit QCC Competition, represented BEL in the International Convention, ICQCC 2017, held at Okada, Philippines and won the “Gold award”.

Another approach for Quality Improvement is through Suggestion Scheme, wherein employees from Non executives up to Managers provide suggestions for which they are suitably rewarded on implementation of their suggestions. Around 2549 suggestions were given by employees this year. Selected BEL employees participated at 28th National Level Convention conducted by Indian National Suggestion Schemes’ Association during January 2018 at Aurangabad and won 10 Awards under various categories. Bangalore Complex was awarded the First Prize for “Excellence in Implementation of Suggestion Scheme 2017” under Engineering Industry Category at the National Level.

The Company has nominated D&E engineers for Certified Reliability Engineer (CRE) program conducted by American Society for Quality (ASQ). 39 D&E engineers were professionally certified for CRE in year 2017-18 taking the number of CREs in the Company to 223.

35 operating level Quality Engineers in various SBUs / Units were certified during the year under Certified Quality Engineers (CQE) program by the American Society for Quality (ASQ) taking the number of CQEs in the Company to 141. Next higher level program, viz. Certified Manager for Quality and Organisation Excellence (CMQ&OE) for Senior level executives, was also conducted by ASQ and 13 senior executives were certified during the year taking cumulative total to 62.

Revised BEL Quality Manual (Revision 4) in line with the latest versions of the Quality Management Systems. Standards including Business Excellence was released during the year.

A ‘Quality Recognition Award’ scheme was introduced this year. Units / SBUs were evaluated for a number of Quality related parameters and best performing Units viz. Antenna & Radar SBUs of GAD, PK Unit and CHN Unit & MR SBU of BG-Cx were awarded prizes.

In order to inculcate a culture of Project Management, training programs for Project Management Professionals (PMP) were conducted. Post training, 146 PMPs (Cumulative 453 from the year 2007-08 onwards) was certified by Project Management Institute (PMI) in year 2017-18. Besides this, customised training programs, viz. Project Management Implementation Programme (PMIP) were conducted for lower level executives to enable them to use Project Management concepts in their work.

An independent Customer Satisfaction Survey (CSS) was done through an external agency, viz. M/s BPMBC Marketing Research(India) Pvt Ltd, Pune, to capture the Customers’ Perceptions on Quality of BEL’s Products and Services. Twenty products from 19 Units / SBUs were included in 2017-18 Customer Satisfaction Survey. Result for the same is awaited. Customer Satisfaction Index for the previous year 2016-17 was 83.8% (average).

New Transaction Codes are introduced in SAP ERP system based on user requirements for better management and analysis of the processes thereby helping in their overall improvement. Customer Relationship Management Module (CRM) and Supplier Relationship Management Module (SRM) in SAP are enabling improvements in Customer Services and Procurement Efficiencies.

Human Resources

Your Company employed 9,726 persons as on 31 March 2018 as against 9,716 persons as on 31 March 2017. Of these employees, 4,863 were engineers / scientists and 2,054 were women employees as on 31 March 2018. A total of 361 executives and 98 non-executives were inducted during the year. 82 employees belonging to SC, 31 employees belonging to ST, 133 employees belonging to OBC and 22 employees belonging to the minority community were recruited during the year.

Your Company has been implementing the Government Directives on Reservation. The particulars of SC/ST and other categories of employees as on 31 March 2018 are as under :

Category of Employees



Group ‘A’

P O to 1- -G

Group ‘C’

Group ‘D’

Scheduled Caste





Scheduled Tribe















Physically Challenged





Various Training programs were conducted during the year to enhance competencies in Technical, Functional, Managerial and Leadership areas. Structured Executive Development Programs were conducted regularly with premier Institutes to meet the evolving training needs of executives as they progress through various grades.

The training programs are designed to enhance competencies in various areas like Technical, Functional and Managerial / Leadership.

A detailed write up on Company’s HR philosophy and specific HR initiatives during the year is provided separately in the Management Discussion and Analysis Report which forms part of this report.

Disclosure under Sexual harassment of Women at Workplace Prevention, (Prohibition and Redressal) Act, 2013

The Company is an equal opportunity employer and consciously strives to build a work culture that promotes dignity of all employees. As required under the provisions of Sexual Harassment of Woman at Workplace (Prevention, prohibition and Redressal) Act and Rules framed there under, the Company has implemented the policy on prevention, prohibition and redressal of sexual harassment at the workplace, which has been uploaded on the Company’s intranet portal. All women, permanent, temporary or contractual including those of the service providers are covered under the policy.

An Internal Complaints Committee has been constituted in each of the nine constituent units including Corporate Office to redress complaints relating to sexual harassment. During the year, the Company received one complaint on sexual harassment and no complaint is pending as at the end of the financial year.

Awareness programs were conducted across the Company to sensitize the employees and uphold dignity of their colleagues at workplace, particularly with respect to prevention of sexual harassment.

Awards and Recognitions

Your Company continues to be a highly trusted for the quality of its products, innovation and renovation of its products based on strong consumer insights and the ability to engage with consumers across the country. During the year your Company has received various Awards and Recognitions. Some of the important accolades received during the year by your Company include :

- Raksha Mantri’s Awards (2014-15)

a) Indigenization Award :

- Doppler Weather Radar

b) Design Effort :

- LYNX U2 Naval Gun Fire Control System

- Raksha Mantri’s Awards (2015-16)

a) Institutional Award :

- Best Performance in Export

b) Division / Factory/Shipyard Award :

- Best Performing Division of DPSUs : Naval Systems (Radar & Fire Control System)

c) Indigenization Award :

- Light Weight Portable Laser Target Designator.

d) Design Effort :

- Test Bed of Automated Air Defence Control and Reporting System.

- Prime Minister’s Shram Awards to BEL Employees for the year 2013-14 & 2014-15.

- Scope Award for Excellence and Outstanding Contribution in the special Institutional category of Digitalization for the year 2016-17.

- All India Management Association (AIMA) Managing India Award for the ‘Outstanding PSU of the Year’.

- Governance Now Awards : for Business Diversification, Adoption of Technological Innovations, HR Excellence, Environmental Sustainability and Research & Development.

- Dun & Bradstreet India’s Top PSU Award 2017 in the Manufacturing Category under Medium & Light Engineering Sector.

- Amity Leadership Award for Business Excellence, for outstanding contributions to the field of Surveillance and Defence industry.

- Vigilance Excellence Award-2017 for ‘Excellent Contribution’ in the category of “Best Institutional Practice to Fight Corruption” for the successful implementation of company wide e-filing system called “File Lifecycle Management (FLM)”.

- INSSAN Award for Excellence in Suggestion Scheme : BEL Bengaluru Unit has been awarded 1st prize for Excellence in Performance of the Suggestion Scheme for the year 2016-17 in Engineering Industry Group.

- First prize in the PSU category for “Responsible Organization Excellence Award” for the year 2016-17 from Associated Chambers of Commerce & Industry of India (ASSOCHAM).

- ELCINA -EFY Award for Excellence in Export for the year 2016-17 from Electronic Industries Association of India.

Other significant achievements during the year : - Handing over of Intelligence Gathering System :

This was handed over to Air Vice Marshal B R Krishna, AVSM, SC, Assistant Chief of Air Staff (Plans), Indian Air Force, in the presence of Dr S Christopher, Chairman DRDO and Secretary Department of Defence R&D and Ms J Manjula, DS & DG (ECS) at BEL Hyderabad Unit on 18 March 2018.

- Foundation stone laid for Sewage Treatment Plant at Doddabommasandra Lake, Bengaluru :

BEL is setting up a 10 MLD (Million Litres per Day) Sewage Treatment Plant to rejuvenate the Doddabommasandra Lake, Bengaluru at a cost of Rs.13.5 Crores as part of its Corporate Social Responsibility activities, in collaboration with the Karnataka Lake Conservation and Development Authority (KLCDA), Bruhat Bengaluru Mahanagara Palike (BBMP) and the Revenue Department of Karnataka.

The foundation stone for the installing and commissioning of the proposed Sewage Treatment Plant was laid on 17 February 2018 by the Chief Guest Mr D V Sadananda Gowda, Hon’ble Union Minister for Statistics and Programme Implementation. Mr Krishna Byre Gowda, Hon’ble Minister for Agriculture, presided over the function. The Sewage Treatment Plant will be designed on the latest ‘Sequential Batch Reactor Technology’ (SBR). This is an advanced version of the well-established ‘Activated Sludge Process’ of the Central Public Health and Environment Engineering Organisation (CPHEEO).

- Contribution to Test flight of MALE UAV :

Test flight of Medium Altitude Long Endurance Unmanned Aerial Vehicle (MALE UAV) was successfully carried out in 25 February 2018.

BEL has contributed in the development of Ground Control Station (GCS), Ground Data Terminal (GDT), various payloads for UAV program and actively participated in the various phases of field evaluation & development trials. BEL has also funded Rs.90 Crores for the development program and deployed team of engineers at Aeronautical Development Establishment (ADE) for the development activities.

- Inauguration of Service Support Centre at Jammu :

The Service Support Centre at IAF Station, Kalu Chak, Jammu was inaugurated by Air Vice Marshal, Rajiv Gandotra, AVSM, Senior Maintenance Staff Officer, on 29 August 2017. This service support centre will support BEL products deployed by Indian Air Force & Indian Army in forward bases.

- Contribution to Firing Trials of Weapon Systems :

Indigenous Surface to Air Weapon Systems, was successfully test fired with BEL manufactured Radio Frequency Seeker on 15 December 2017.

- BEL Flagged off Advanced C4I System :

Advanced C4I System was flagged off on 7 December 2017 from BEL Ghaziabad unit by Major General R K Choudhary, ADG IS(A), Brig R S Mehta ADGQA(L), Brig Ajay Sethi DDG, Senior Officers from DGQA, CQAL and PMO-BSS, attended the Flagging off ceremony.

- BEL flagged off 100th upgrade Electro Optic gun from Chennai unit for use by Indian defence forces.

- Online Inventory Management System (OIMS) :

BEL inaugurated Online Inventory Management System for Indian Navy on 24 November 2017. OIMS system is developed in BEL and is expected to provide smooth post sales support of BEL supplied equipment to Indian Navy.

- Contribution to Test Firing of Indigenous Quick Reaction Missile : Indigenously developed Quick

Reaction Surface-to-Air Missiles (QR-SAM) was test fired on 4 June 2017 from Chandrapur in Odisha. The Quick Reaction Surface to Air Missile (QR-SAM) was jointly developed by the Defence Research and Development Organisation (DRDO) and Bharat Electronics Limited. The on board missile unit of Two-Way-Data-Link (TWDL) system developed by BEL, performed well during firing trial.

Subsidiaries, Joint Ventures and Associates

BEL Optronic Devices Limited (BELOP), engaged in the business of manufacturing of Image Intensifier Tubes, is a wholly owned subsidiary of BEL. Your Company has made further investment to the tune of Rs.1,744 Lakhs (708,732 equity shares of Rs.100/- each at a premium of Rs.146/- per share) during the year in the equity shares of BELOP by subscribing to right issue made by BELOP.

BELOP achieved a turnover of Rs.12,164 Lakhs for the year as against Rs.12,388 Lakhs in the previous year. The profit after tax (PAT) for the year was Rs.1,155 Lakhs as against Rs.484 Lakhs in the previous year. BELOP has proposed a dividend of Rs.5.22 per share for financial year 2017-18.

The Associate Company GE BE Private Limited continues to perform well. This Company manufactures CT Max and other latest version X-Ray Tubes. BEL supplies some parts required for the products manufactured by this Company. GE BE Pvt. Ltd. recorded a turnover of Rs.80,691 Lakhs for the year as against Rs.79,985 Lakhs in the previous year. The profit after tax (PAT) was Rs.9,146 Lakhs for the year as against Rs.10,130 Lakhs in the previous year. The Company has proposed 100% dividend for the financial year 2017-18.

M/s BEL-THALES Systems Limited (BTSL), a subsidiary, was formed for design, development, marketing, supply and support of civilian and select defence radars for Indian and Global markets. Your Company holds 74% of the equity capital in BTSL. During the year of its operation, it incurred a loss of Rs.259 Lakhs.

Defence Innovation Organization (DIO), was incorporated on 10 April 2017 as a ‘Not for Profit’ Company as per the provisions of Section - 8 of the Companies Act 2013 with an authorised share capital of Rs.1 Crore (BEL: 50%; HAL: 50%). The registered office of the company is situated at Centre for Learning and Development, Bharat Electronics Limited, Jalahalli, Bengaluru - 560 013. The Company has been formed with an objective of funding innovation in defence sector. The company has not yet commenced its operations.

In pursuant to provisions of section 129(3) of the Companies Act, read with Rule 5 of Companies (Accounts) Rules, 2014, the statement containing salient features of the financials statement of Subsidiaries / Associate / Joint Ventures is attached to the financial Statements.

Consolidated Financial Statements

Consolidated Financial Statements of your Company and its Subsidiaries and Associate Companies are attached to this Report.


The Company’s Vigilance Organization is headed by Chief Vigilance Officer (CVO), an IAS Officer from Bihar cadre (1987 batch). Permanent Vigilance Officers were posted in each of the Units and in the SBUs. Vigilance Committees were formed in the each of the Units to look after the Vigilance Administration in the Units and SBUs and the Unit/SBU heads are also designated as Chairman of the Vigilance Committee. Apart from this, there exists a Vigilance Committee at the Corporate Office; where Chairman cum Managing Director is the Chairman of the Committee and the CVO is the Member Secretary. Preventive Vigilance has been the thrust area of the Vigilance Organisation and the same received focused attention during the current year. The Vigilance Department examines procurement/sub-contract Contracts and processes on continual basis, conducts regular and surprise inspections and investigates instances of any suspected transactions referred to it. Any employee or third parties can refer any suspected transaction to the notice of CVO for investigation which are examined as per the Complaint Handling Policy of the Company. Online Complaint Management System has been made operational and online complaints can be filed through accessing the Vigilance Portal in BEL web site.

During the year 1158 Purchase Orders / Contracts have been reviewed. CTE Type intensive examination has been restructured with the formation of 5 IE teams. CTE Type of Intensive Examination of 66 High value Procurements Contracts has been taken up during the year. Regular and Surprise checks and Inspections have also been conducted by the field Vigilance Officers. During the year, 54 Complaints, including the Complaints referred by CVC/MOD/CBI were received. A total of 56 Complaints and 5 Complaints referred by CVC/MOD/CBI were disposed. Disciplinary action and System / Process Improvement has been recommended in some cases where lapses were observed. Two Complaints each are pending with CBI, Ghaziabad and Bengaluru for detailed investigation.

During the year, 115 Probationary Engineers at the induction level, 1582 Executives and 629 Non Executives were given basic awareness program on Vigilance. Apart from this, 76 Senior Executives were given Customised Training Program on Vigilance, Cyber Crimes and Preventive Vigilance measures. 77 Executives & 54 Non Executives working in sensitive areas for more than 3 years have been job rotated and the percentage coverage is 100%.

Vigilance Department received the ISO 9001/2015 Certification for the Vigilance function of BEL in June 2016. The Second Surveillance audit has been completed during March 2018.

In line with the CVC’s guidelines on Leveraging Technology and to ensure transparency through effective use of technology, the following functions have been made operational through SAP and the Company’s website :

- E-Procurement - about 90% of the procurements excluding the ToT procurement, Long term Rate Contracts and Repeat Orders, were covered under e-procurement mode.

- Online registration of Vendors.

- Vendor Payment Information System.

- E-Payment / Bank transfer of payment to Vendors.

- Details of awarded contracts / Purchase Orders valuing more than Rs.10 Lakhs in respect of works contracts, service contracts, capital items and non-production items have been posted in the website.

- Details of awarded Contracts / Purchase Orders issued on nomination / single tender basis value exceeding Rs.5 Lakhs have been posted in the website.

- Purchase Procedures, sub contract procedures and Works Contract Manual have been revised and were posted in the BEL website.

- Complaint Handling Policy and Whistle Blower Policy are posted in the website.

- Corruption Risk Management Policy is framed and implemented across the Company for implementation. The same is posted in the website.

- Vendors’ Directory, after flagging removing defunct vendors, have been posted in the Company’s website.

- File Life Cycle Management System (FLM) has been implemented across the company and the coverage is about 95% of the total files generated in the Company.

- On-line filing of APRs is facilitated in SAP for all the Executives and the Executives have been filing the APRs in SAP.

- Vigilance Monthly Reports are generated through SAP.

- Vigilance clearance is accorded through the dedicated Vigilance portal in SAP.

Vigilance setup in BEL has been continuously endeavoring to bring transparency, fairness and equity in all transactions and processes of the company through creating a sense of awareness on System and Procedures through awareness campaign and training program. Some of the key activities that have been carried out during the year are :

i) Vigilance awareness week 2017 was observed during October/November 2017. The observance of the Week was marked with special address by eminent personalities. Gram Sabhas were organized as part of the outreach activities in Nelamangala and Dabaspet in Bangalore District, Rajpura and Mahmoodpur villages near Ghaziabad, Nimmaluru Village in Andhra Pradesh and in Vellanky Village of Bhongir District in Telegana State. Skit plays and Video films portraying national integration and anti Corruption messages were shown to School and College Students located near the location of BEL Factories. Similar anti corruption awareness program in the form of skit plays and inspirational video films were arranged for the School students of BEL Educational institutions covering about 750 students. Integrity Pledge was administered to School and College students during the occasion. Walkathon and Cycle rally by BEL School Children, Human chain by BEL employees, Vigilance Walk by employees of Bengaluru based PSUs and PSBs, Tree plantations and distribution of saplings, unveiling of Vigilance Slogan Boards and series of lecture by distinguished personalities and Competitions were organized as part of the observance of the Vigilance Awareness Week.

ii) E-pledge, an initiative of the Commission was facilitated in BEL-Intranet, apart from the facility of taking the e-pledge in the CVC website.

iii) About 3041 BEL employees have successfully completed the Online Certified Program on Public Procurement organized by World Bank. About 60 Executives who have successfully completed the CPPP with distinction have taken the next level course of “Professional Diploma in Public Procurement” conducted by Indian Institute of Materials Management (IIMM). Apart from this, 173 employees have successfully completed the CPCM (Certificate Program in Contract Management) conducted by World Bank.

iv) Training Programs and Works shop on subjects like “Disciplinary Proceedings and framing of Charge Sheet”, “Probity in Public Procurement, Integrity Pact & Cyber Security”, “Cyber Security for the Corporate”, “Arbitration and Alternate dispute resolution” were organized to increase the competency levels of executives who are performing these functions across the Company.

Integrity Pact

One of the initiatives of the Central Vigilance Commission (CVC) to eradicate corruption in procurement activity is introduction of the Integrity Pact in large value contracts in Government Organizations. In line with the directives from Ministry of Defence and the Central Vigilance Commission, your Company has adopted Integrity Pact with all vendors / suppliers / contractors / service providers for all Orders / Contracts of value Rs.2,000 Lakhs and above, initially. This threshold value was reduced to Rs.1,000 Lakhs from March 2013 and further reduced to Rs.500 Lakhs from May 2014 and further reduced to Rs.400 Lakhs from September 2016, subsequently it was further reduced to Rs.300 Lakhs from September 2017.

The Pact essentially envisages an agreement between the prospective vendors / bidders and the Principal (BEL), committing the Persons / officials of both sides, not to resort to any corrupt practices in any aspect / stage of the contract. Only those vendors / bidders, who commit themselves to such a Pact with the Principal, would be considered competent to participate in the bidding process. Integrity Pact, in respect of a particular contract, would be operative from the stage of invitation of bids till the final completion of the contract. Any violation of the same would entail disqualification of the bidders and exclusion from future business dealings.

As recommended by the CVC, the Company has appointed Mr M D Paliath, IDAS (Retd) and Mr Shankar Narayan, Dy CAG (Retd) for monitoring implementation of Integrity Pact in the Company. During the financial year 2017-18 the IEMs reviewed 294 contracts and held structured meetings with the Chairman & Managing Director.

Procurement from MSEs

Your Company has been providing increased thrust on enhancing procurement from MSEs and is implementing Public Procurement Policy for Micro & Small Enterprises (MSEs) as per the guidelines / notification issued by the Ministry of MSEs. Out of the total procurement during 2017-18, Procurement from MSE vendors in line with Public Procurement Policy requirements.

In order to facilitate MSEs, the company is deploying all efforts to classify the existing vendors into Micro & Small Enterprises in the Company’s procurement system through web-based real time centralized ERP System (SAP). Online Vendor registration forms are available in the Company’s official website ( Nodal Officers are nominated to assist vendors regarding Procedure for Registration, understanding the requirements of BEL, report grievances, if any, etc. Some of the other initiatives include uploading of company’s procurement plan for MSEs based on the production plan, with periodic update and details of Unit / SBU specific Nodal Officers in the Company’s official website, participation in various vendor development programmes like exhibitions, workshops, establishment of industrial estate to give maximum encouragement to ancillaries etc.

BEL participated in the State Level MSME Vendor development meet organised by MSME Development Institute at BEL, Chennai on 9 January 2018 and showcased various items for indigenization for MSMEs vendors.

BEL Participated in the Defence Industry Development Meet, which was inaugurated by Smt Nirmala Sitharaman, Hon’ble Raksha Mantri, at Chennai on 18 January 2018 and showcased various items for indigenization for domestic vendors including MSEs.

BEL participated in the Defence Indigenization exhibition organized by Coimbatore District Small Industries Association (CODISSIA) during 5th to 6th March 2018 and showcased various items for indigenization for domestic vendors including MSEs.

Implementation of Official Language Policy

Your Company is committed to adhere to the OL policy of the Government of India. During 2017-18, company has achieved the various targets prescribed in the Annual Program 2017-18 issued by Dept. of OL, MHA, GoI to transact official work in Hindi. The efforts made towards implementation of Official Languages include :

OL Inspections : Committee of Parliament on Official Language conducted OL inspection of Central Research Laboratory, Bengaluru on 16 February 2018. MoD officials conducted OL inspections of Machilipatnam Unit on 8 January 2018 and R.O. Vizag on 9 January 2018. Corporate OL Audit team conducted OL audits at Panchkula, Chennai, Kotdwar Units, CRL-Bengaluru, R.O. Kolkata, EW & A and Components SBU’s of BC.

Bilingualisation : A comprehensive document of bilingual standard correspondence (Pre recruitment to post retirement) of HR Department was prepared and issued by OL Dept. for usage in all Units / Offices of the Company. Section 3(3) documents, replies to the letters received in Hindi, correspondence, Rule 11 items (stationary, codes and manuals, procedural literature) are being issued in bilingual in all Units and offices of company in accordance with OL rules.

Hindi Month Celebrations : During September Hindi Month and Hindi Day was observed in all the Units and Offices of the Company. During the month, employees and officers participated enthusiastically in various programs / competitions. Employees of various Units / Offices and Corporate Office bagged prizes in the Inter Organization TOLIC Competitions. Hindi workshops for those having working knowledge in Hindi were conducted during the year. Various Incentive Schemes were propagated among all employees and number of Executives / Employees took part in these schemes.

OL in SAP and Website : OL Portal GARIMA is in place to facilitate OL implementation across the Company and to provide latest inputs pertaining to OL and is regularly updated. QPR reports from Units / Offices are being received online in SAP. Hindi notings are being written in File Lifecycle Management (FLM). Company’s website is also available in Hindi and being updated simultaneously.

At Corporate level, initiative has been taken to prepare a compilation of bilingual Electronic Terminology (Defence & Non Defence) of BEL. Two issues (half yearly) of Corporate Hindi Journal “Nava Prabha” were published during the current FY. Efforts are in progress to ensure OL Implementation and achieving progressive usage of Hindi across BEL.

Implementation of RTI Act

The information required to be provided as per Section 4(1)(b) of the Right to Information Act, 2005 has been posted on the website of the Company The Information posted on the website contains general information about the Company, powers and duties of employees, decision making process, rules, regulations, manuals and records held by BEL, a directory of the Company’s officers, pay scales, procedure for requesting additional information about the Company by citizens and associated request formats.

During the year 2017-18 the Company received and attended 444 requests for information under RTI Act. Most of the requests were for information related to recruitment, service related matters, third party and commercial secrets information.

Board Meetings / Change in Directors and Key Managerial Personnel

During the year, nine Board meetings were held, the details of which form part of the Corporate Governance Report.

Following changes took place in the Directorate and Key Managerial Personnel (KMP) of your Company during the financial year :

Sl. No.

Name of the Director


Date of Appointment

Date of Cessation


Mr Mukka Harish Babu

Independent Director


Not Applicable


Dr Vijay S Madan

Independent Director


Not Applicable


Mr Surendra S Sirohi

Independent Director


Not Applicable


Mr Koshy Alexander

Director (Finance)


Not Applicable


Mrs Kusum Singh

Govt. Nominee Director




Mr Chandraker Bharti

Govt. Nominee Director




Dr Amit Sahai

Govt. Nominee Director


Not Applicable


Mr Girish Kumar

Director (Bangalore Complex)



During the year there was no change in the Key Managerial Personnel of the Company.

Mr M V Gowtama, Chairman & Managing Director, Mr Koshy Alexander, Director (Finance) and Chief Financial Officer and Mr S Sreenivas, Company Secretary are the KMPs, as defined under the Section 2(51) of the Companies Act, 2013.

Mrs J Manjula, Govt. Nominee Director was appointed on 23 April 2018 and Mr Mahesh V, Director (Research & Development) was appointed on 1 June 2018 in place of Dr Ajit T Kalghatgi who retired from his services on 31 May 2018 on attaining the age of superannuation.

The following Additional Directors are being appointed as Directors on terms as set-out in the Notice of the 64th Annual General Meeting :

Mr Harish Babu Mukka, Dr Vijay S Madan, Mr Surendra S Sirohi, Mr Koshy Alexander, Dr Amit Sahai, Ms J Manjula and Mr Mahesh V.

Mrs Anandi Ramalingam, Director (Marketing), retires by rotation at the ensuing Annual General Meeting and being eligible, offers herself for reappointment.

Directors’ Responsibility Statement

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors in terms of Sections 134(3)(c) & 134(5) of the Companies Act, 2013 state that :

a) in the preparation of the annual accounts, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;

b) the directors had selected such accounting policies and applied them consistently and made judgments 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 at 31 March 2018 and of the profit of the Company for the year ended on that date;

c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) the directors have prepared the annual accounts on a going concern basis;

e) proper internal financial controls were in place and such financial controls were adequate and were operating effectively; and

f) systems to ensure compliance with the provisions of all applicable laws were in place and same were adequate and operating effectively.

Significant and Material Orders

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future.

Events Subsequent to the Date of Financial Statements

Material changes and commitments affecting the financial position of the company which have occurred between 31 March 2018 and date of signing of this Report are - Nil.

Related Party Transactions

There were no materially significant related party transactions with the Company’s Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties that were entered into during the financial year were on an arm’s length basis and were in the ordinary course of business. All Related Party Transactions were placed before the Audit Committee and also to the Board for approval, if required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transaction has been uploaded on the Company’s website Information pursuant to section 134(3)(h) of the Companies Act, 2013 read with rule 8(2) of the Companies (Accounts) Rules, 2014 is attached to this report as “Annexure 2”.

Corporate Social Responsibility

Pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 read with various clarifications, amendments issued by Ministry of Corporate Affairs & DPE guidelines, the Company has undertaken various activities as per the CSR and Sustainability Policy. The programmes / initiatives / projects are taken up in line with the Schedule-VII of the Companies Act, 2013, which are duly incorporated in CSR and Sustainability Policy and forms the guiding principle for all our programmes.

The Corporate Social Responsibility and sustainability policy of the Company is posted on the Company’s website,

Pursuant to the requirement under the Companies (Corporate Social Responsibility) Rules, 2014, as amended, a report on CSR activities for financial year 2017-18 is annexed herewith as “Annexure 3”.

Maintenance of cost records

As per the provisions of section 148 (1) of the Companies Act, 2013, the Company is required to maintain cost records. Accordingly the prescribed cost accounts and records are made and maintained by the Company.


Statutory Auditors

Pursuant to Section 139(5) of the Companies Act 2013, the Comptroller and Auditor General of India appointed M/s SURI & CO., Chartered Accountants, Bengaluru, as Statutory Auditors for the financial year 2017-18 for audit of accounts of Bangalore Complex, Hyderabad and Chennai Units and Corporate Office. M/s Ved & Company, Chartered Accountants, Ghaziabad were appointed as Branch Auditors of Ghaziabad, Panchkula and Kotdwara Units for the financial year 2017-18. M/s Malani Somani Chandak & Associates, Chartered Accountants, Pune were appointed as Branch Auditors for Pune and Navi Mumbai Units for the financial year 2017-18. M/s Tungala & Co., Chartered Accountants, Machilipatnam were appointed as Branch Auditors for Machilipatnam Unit for the financial year 2017-18.

Cost Auditors

Pursuant to Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014 (as amended), the cost audit records maintained by the Company in respect of its Manufacturing activities are required to be audited by the Cost Auditor. Your Directors had, on the recommendation of the Audit Committee, appointed M/s GNV & Associates, Cost Accountants, Bengaluru, as Cost Auditors of the Company for the financial year 2017-18 for conducting the audit of cost records of the Company.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr Thirupal G, Practicing Company Secretary (PCS Registration No. 6424) for the financial year 2017-18 to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed to this report as “Annexure 4”.

The Secretarial Auditor in his Report observed that the Company is yet to appoint the adequate number of Independent Directors as per the requirements of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. It is informed that the appointment of Directors is done by Govt. of India and filling up of vacancies of the said Independent Directors is also pending with the appointing authority namely Government of India.

Auditors’ Report

Auditors’ Report on the Annual Accounts for the financial year 2017-18 and “Nil” Comments certificate of the Comptroller & Auditor General of India under Section 143(6)(b) of the Companies Act, 2013 on the Annual Accounts are appended to this report.

Extract of Annual Return

In accordance with Section 134(3)(a) of the Companies Act, 2013 an extract of the annual return in the form MGT-9 is annexed to this report as “Annexure 5”.

Business Risk Management

Pursuant to the Reg. 21 of SEBI (LODR) Regulations, 2015, the Company has constituted a Risk Management Committee. The details of Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report and a detailed note on Risk Management is provided in the Management Discussion and Analysis Report.

Remuneration Policy & Board Evaluation

The Board has, on the recommendations of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration, Board Evaluation etc. The details are set out in the Corporate Governance Report.

Vigil Mechanism / Whistle Blower Policy

The Company has a vigil mechanism named Whistle Blower Policy to deal with instance of fraud and mismanagement, if any. The details of the policy are set out in the Corporate Governance Report.

Declaration from Independent Directors

The Company has received necessary declaration from each Independent Director of the Company under Section 149(7) of the Companies Act, 2013 that the Independent Directors of the Company meet with the criteria of their Independence laid down in Section 149(6) of the Companies Act 2013.

Management Discussion and Analysis Report

Management Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the Government (DPE) Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report as “Annexure 6”.

Particulars of Loans, Guarantees & Investments

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Act, are given in the notes to the Financial Statements.

Internal Financial Controls

The Company has in place adequate internal financial controls with reference to financial statements. A detailed note on Internal Financial controls is provided in the Management Discussion and Analysis Report.

Composition of Audit Committee

The Audit Committee comprises of Independent Directors viz., Mrs Usha Mathur, Chairman of the Committee, Dr R K Shevgaonkar, Mr Mukka Harish Babu and Government Nominee Director, Dr Amit Sahai, as its members and all the recommendations made by the Audit Committee were accepted by the Board, during the year.

Corporate Governance Report

DPE guidelines on Corporate Governance for CPSEs provide that CPSEs would be graded on the basis of their compliance with the guidelines. DPE has graded BEL as “Excellent” for 2016-17. In terms of Regulation 34 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and DPE Guidelines, a Report on Corporate Governance along with Compliance Certificate issued by Statutory Auditors of the Company is attached to this report as “Annexure 7”.

Sustainability Report

The DPE guidelines on Sustainable Development for CPSEs mandate CPSEs to disclose their Sustainable Development efforts in a ‘Standalone Report’ or as a separate chapter in the Annual Report. Pursuant to this requirement, a Report on your Company’s efforts on “Sustainable Development” is attached to this Report as “Annexure 8”.

Business Responsibility Report

The Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility Report (“BR Report”) as part of the Annual Reports for the top 500 listed entities based on market capitalization. This SEBI mandate is also inserted as Regulation 34(2)(f) of SEBI (LODR) Regulations, 2015. The SEBI (LODR) Regulations, 2015 provide a format for BR reports. It also contains a list of nine Key Principles and various core elements under each principle to assess compliance with Environmental, Social and Governance norms. Listed Companies are required to prepare policies based on these nine Key principles and core elements, put in place a framework to integrate and embed the policies into business activities and a mechanism to measure and report the achievements as Business Responsibility Report.

Your Company has prepared a comprehensive policy framework for Business Responsibility Report, after studying the SEBI (LODR) Regulations, 2015 requirements and keeping in view the business and governance environment in which BEL as a Defence PSU operates. Highlights of this policy are posted on the Company’s website www.bel-india. in. The Company’s Business Responsibility Report for the year is attached to this Report as “Annexure 9”.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

Your Company being a defence PSU, the disclosure of information with respect to conservation of energy, technology absorption, foreign exchange earnings and outgo under the provisions of Section 134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is not required as the Ministry of Corporate Affairs vide Notification GSR No.680 (E) dated 4 September 2015 has granted exemption to Defence Public Sector Undertakings.


Your Directors place on record their deep appreciation and gratitude for the valuable support received from all the customers, particularly the Defence Services and the para-military forces and look forward to their continued support and co-operation in future. Your Directors also place on record their gratitude for the support received from various Ministries of the Government of India, especially the Ministry of Defence, Department of Defence Production. Your Directors express their gratitude to the Defence Research and Development Organisation and the various Research Laboratories under DRDO for the support it received, particularly in the joint development programmes and new products brought out with the help of them. Your Directors express their sincere thanks to the Comptroller and Auditor General of India, Chairman, Members and employees of the Audit Board, Statutory Auditors, Branch Auditors, Cost Auditors, Secretarial Auditors, Company’s Bankers, Collaborators and Vendors. Your Directors appreciate the sincere efforts put in by the employees at all levels, which enabled the Company to achieve the good performance during the year. Your Directors express their appreciation and gratitude to all the shareholders / investors for the trust and confidence reposed in the Company and look forward to their continued support and participation in sustaining the growth of the Company in the coming years.

For and on behalf of the Board

Bengaluru M V Gowtama

16 August 2018 Chairman & Managing Director