Bel Ar 2009-10

1
TO
ALL SHAREHOLDERS
NOTICE IS HEREBY GIVEN THAT the ffy sixth Annual General Meetng of the
Shareholders of Bharat Electronics Limited will be held on Tuesday, the 28th of
September 2010, at 2.30. p.m. at Kalinga Hall, The Lalit Ashok Hotel, Kumara
Park High Grounds, Bangalore - 560 001, to transact the following business:-
ORDINARY BUSINESS
1. To receive, consider and adopt the Proft & Loss Account for the year
ended 31 March 2010 and the Balance Sheet as at that date and the
Reports of the Directors and the Auditors thereon.
2. To confrm the Interim Dividend and declare Final Dividend on Equity
Shares.
3. To appoint a Director in place of Mr M L Shanmukh, who
retres by rotaton and being eligible, ofers himself for
re-appointment.
4. To appoint a Director in place of Lt Gen P Mohapatra, AVSM,
who retres by rotaton and being eligible, ofers himself for
re-appointment.
SPECIAL BUSINESS
ORDINARY RESOLUTION
5. To consider and if thought ft, to pass, with or without modifcatons, the
following resoluton as Ordinary Resoluton:
"RESOLVED THAT Mr Anil Razdan who was appointed as Additonal
Director by the Board of Directors of the Company in its meetng held
on 29th of January, 2010, to hold ofce upto the date of this Annual
General Meetng and for the appointment of whom the Company has
received a notce under Secton 257 of the Companies Act, 1956 from
a member proposing his candidacy for the ofce of Director, be and is
hereby appointed as a Director of the Company whose period of ofce
shall be liable to determinaton by retrement by rotaton."
"RESOLVED THAT Prof Vinod Kumar Bhalla who was appointed as
Additonal Director by the Board of Directors of the Company in its
meetng held on 29th of January, 2010, to hold ofce upto the date of
this Annual General Meetng and for the appointment of whom the
t
BHARAT ELECTRONICS LIMITED
( ^ maV g aH$ma H$mC _ )
(A Government of India Enterprise)
..|+. . +... +..... - . |. . ...... ... - 560 045
Registered & Corporate Ofce: Outer Ring Road, Nagavara, Bangalore 560 045
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2
Company has received a notce under Secton 257 of the Companies Act,
1956 from a member proposing his candidacy for the ofce of Director,
be and is hereby appointed as a Director of the Company whose period
of ofce shall be liable to determinaton by retrement by rotaton."
"RESOLVED THAT Mr M S Ramachandran who was appointed as
Additonal Director by the Board of Directors of the Company in its
meetng held on 29th of January, 2010, to hold ofce upto the date of
this Annual General Meetng and for the appointment of whom the
Company has received a notce under Secton 257 of the Companies Act,
1956 from a member proposing his candidacy for the ofce of Director,
be and is hereby appointed as a Director of the Company whose period
of ofce shall be liable to determinaton by retrement by rotaton."
"RESOLVED THAT Mr Satyajeet Rajan who was appointed as Additonal
Director by the Board of Directors of the Company in its meetng held
on 29th of January, 2010, to hold ofce upto the date of this Annual
General Meetng and for the appointment of whom the Company has
received a notce under Secton 257 of the Companies Act, 1956 from
a member proposing his candidacy for the ofce of Director, be and is
hereby appointed as a Director of the Company whose period of ofce
shall be liable to determinaton by retrement by rotaton."
By order of the Board,
For Bharat Electronics Limited

Bangalore C R Prakash
25 August 2010 Company Secretary
NOTE
1. Relevant Explanatory Statement pursuant to Secton 173(2) of the
Companies Act, 1956 (the Act), in respect of Special Business as set out
above is annexed hereto and forms part of the Notce.
2. A member enttled to atend and vote at the Annual General Meetng
(the meetng) is enttled to appoint a proxy to atend and vote on
a poll instead of himself and the proxy need not be a member of the
Company. The instrument appointng a proxy should, however, be
deposited at the Registered Ofce of the Company duly completed, not
less than 48 hours before the commencement of the meetng.
3. Corporate members intending to send their authorised representatves
to atend the Meetng are requested to send to the Company a certfed
copy of the Board Resoluton authorising their representatve to atend
and vote on their behalf at the Meetng.
4. The Company has already notfed closure of Register of Members
and Share Transfer Books from 15/09/2010 to 28/09/2010 (both days
inclusive) for determining the names of members eligible for dividend on
Equity shares, if declared at the Meetng.
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3
5. The Final Dividend for the year 2009-10, if declared at the Meetng,
will be payable within 30 days from the date of declaraton, to those
members whose names shall appear on the Companys Register of
Members as on 14 September, 2010.
Company will be making the dividend payment by ECS (Electronic
Clearing System), wherever possible and by dividend warrant / Bank
demand drafs in other cases. In respect of shares held in electronic
form, the dividend will be paid on the basis of benefcial ownership
details furnished by the Depositories (NSDL & CDSL), as at the close
of business hours on 14 September, 2010, for this purpose. Members
holding shares in electronic form may note that bank partculars
registered against their respectve depository accounts will be
used by the Company for payment of dividend. The Company or
its Registrars cannot act on any request received directly from the
members holding shares in electronic form for any change of bank
partculars or bank mandate. Such changes are to be advised only
to the Depository Partcipant of the Members. Members who have
changed their bank account afer opening the Depository Account and
want to receive dividend in an account other than the one specifed
while opening the Depository Account, are requested to change /
correct their bank account details (including the nine digit Bank code)
with their Depository Partcipant, before 14th of September, 2010.
6. Under Secton 205A(5) of the Act, companies are required to transfer to
the Investor Educaton and Protecton Fund (the Fund) established by
the Government under Secton 205C of the Act the money transferred
by the companies to the Unpaid Dividend Account and which remain
unclaimed / unpaid for a period of seven years. As per Secton 205C of
the Act no claims shall lay against the Fund or the Company in respect of
individual amounts thus transferred to the Fund and no payment shall
be made in respect of any such claims. During the year 2009-10 the
Company transferred to the Fund an amount of Rs. 195,711 / - from the
unpaid Dividend Account for the year 2001-02. The unclaimed / unpaid
dividend for the year 2002-03 is due for transfer to the Fund in 2010.
Notces to this efect have been sent to the respectve shareholders to
enable them to claim and receive the amount. Company has posted
on its website www.bel-india.com in a separate page ttled Informaton
for Investors the details of dividend payment since 2002-03 onwards
and guidance informaton for claiming unpaid dividend. Members are
requested to make use of the claim form provided therein to claim
unpaid / unclaimed dividend.
7. Members desirous of getng any informaton in respect of Accounts
of the Company are requested to send their queries, in writng, to the
Company at the Registered Ofce so as to reach at least 7 days before
the meetng so that the required informaton can be made available at
the meetng.
8. Members are requested to bring their copies of the Annual Report and
the Notce to the meetng.
9. Members / Proxies atending the meetng are requested to complete
the enclosed Atendance Slip and deliver the same at the entrance of
the meetng venue.
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4
10. In case of joint holders atending the Meetng, only such joint holder
who is higher in the order of names will be enttled to vote.
11. Members holding shares in physical form are requested to notfy to
the Companys Registrars and Transfer Agent, M/s Alpha Systems
Pvt. Ltd., 30, Ramana Residency, Ground Floor, 4th Cross, Sampige
Road, Malleswaram, Bangalore 560003, Tel. 080-23460815-18,
Fax : 080-23460819 immediately any change in their address, by sending
a writen communicaton. Members who are holding shares in demat
form are requested to contact the respectve Depository Partcipants
with whom they have opened the Demat Account and get the change
of address recorded.
12. Members stll holding shares in physical form are advised to dematerialise
the shares in their own interest to avoid difcultes arising from
loss / misplacement / thef / forgery of share certfcates. Company has
entered into agreements with both the depositories, viz. NSDL and CDSL
to enable the shareholders to dematerialise BEL shares. Members may
please contact the Registrar and Transfer Agent, M/s Alpha Systems Pvt.
Ltd. in this connecton.
ANNEXURE TO THE NOTICE
EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE
COMPANIES ACT, 1956.
In respect of item No. 5 - 8
Your Company being a Government Company, the Directors on the Board
are appointed by the Government of India (Government). Government has
appointed following Directors on the Board of Directors of the Company:
1. Mr Anil Razdan
2. Prof Vinod Kumar Bhalla
3. Mr M S Ramachandran
4. Mr Satyajeet Rajan
Pursuant to Secton 260 of the Companies Act, 1956 and Artcle 71C of the
Artcles of Associaton of the Company, the Board of Directors at Board
meetng held on 29-01-2010 appointed above persons as Additonal Directors
to hold ofce upto the date of the next Annual General Meetng.
Subsequently, the Company has received four notces in writng under
Secton 257 of the Act from members signifying their intenton to propose the
appointment of above persons as Directors of the Company and a deposit of
Rs. 500/- each has been received along with notces.
Brief resume of the above new directors including the details required to be
forwarded to the Shareholders as per Listng Agreement with Stock Exchanges,
enclosed. Your Directors feel that the Company would immensely beneft
from the knowledge and rich experience possessed by these persons and
accordingly recommend the passing of the resolutons proposed at Items No.
5 - 8 of the Notce.
No Director other than the Additonal Directors (the persons proposed to
be appointed as Directors in these resolutons) is in any way concerned or
interested in the resolutons set out at Items No. 5 - 8.
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5
Brief Resume of Directors Proposed to be Reappointed/Appointed
Directors Proposed to be Reappointed
Mr M L Shanmukh joined BEL as Director (Human Resources) on 14 August
2004. He holds a BA in Economics, LLB and Post Graduate Diploma in
Personnel and Industrial Relatons. Before being elevated to the BEL Board,
Mr Shanmukh was Group General Manager (HRD) at Container Corporaton
of India, a blue chip PSU under the Ministry of Railways. Prior to that, he had
worked in the Kerala State Electronics Development Corporaton Limited.
He brings with him a wealth of experience in the felds of Human Resources
Management, Industrial Relatons and Employee Welfare.
Mr M L Shanmukh is a BEL nominee Director on the Board of BELs subsidiary
Company, BEL Optronic Devices Ltd. (BELOP). He is also the Chairman of
the Audit Commitee in BELOP. He is a member of Shareholders / Investors
Grievance Commitee in BEL. He does not hold any shares in BEL.
Lt Gen P Mohapatra was appointed as a part-tme ofcial Director on the
Board of Directors of the Company in September, 2008. He is the Signal
Ofer-in-Chief and Colonel Commandant of the Corps of Signals in the
Indian Army. An alumnus of NDA and DSSC, he has done the prestgious
Higher Command Course and also atended the Natonal Security and
Strategic Studies Course at the NDC. During Higher Command Course,
he was awarded the Commandants medal for best Research Study. The
General Ofcer has had an illustrious career spanning over three decades
and tenanted some very prestgious Command and Staf appointments.
Lt Gen P Mohapatra is a Director on the Boards of two other Public Sector
Enterprises, viz., ITI Limited and Electronics Corporaton of India Ltd. He
does not hold any shares in BEL.
Directors proposed to be appointed
Mr Anil Razdan was appointed as an Independent Director on BEL Board
on 23 November 2009 for a period of three years. He was borne on the
Haryana cadre of the Indian Administratve Service. He is an alumnus of St.
Stephens College, Delhi for B.Sc. (Hons.), Physics and Faculty of Law, Delhi
University for LL.B. Mr Razdan was Secretary to the Government of India,
Ministry of Power. He held various signifcant assignments in the energy sector
in the Government of India and the Government of Haryana. He has been
Director / Joint Secretary with the Department of Atomic Energy and Joint
Secretary, Ministry of Power, Additonal Secretary and Special Secretary with
the Ministry of Petroleum and Natural Gas in the Government of India. He
has also been Financial Commissioner and Principal Secretary, Government. of
Haryana in the Power, Irrigaton and Public Works Departments.
Mr Anil Razdan is not on the Board of any other Company. He is a member of
BEL Audit Commitee. He does not hold any shares in BEL.
Prof Vinod Kumar Bhalla was appointed as an Independent Director on BEL
Board on 23 November 2009 for a period of three years. He is a Professor
at the Faculty of Management Studies in the University of Delhi. He is
M.A. Economics from Punjab University and he did his Ph.D at Delhi School
of Economics, University of Delhi. His expertse is in the feld of Finance
[Corporate Finance; Internatonal Finance, Security Analysis & Portolio
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6
Management; Risk Management; Internatonal Business]. He has total
experience of more than 35 years and as Professor for more than 17 years.
Prof Bhalla has published more than 100 research papers. He has also writen
a number of books and artcles in various journals in the feld of Financial
Management and Policy, Foreign Direct Investment, etc.
Prof Vinod Kumar Bhalla is a Director on the Boards of 4 companies other
than BEL: (1) Northern Coalfelds Ltd. (NCFL), (2) Rico Auto Industries Ltd.
(RAIL), (3) IFCI Financial Services Ltd (IFSL) and (4) Sanlam Trustee Company
(India) Ltd. He is a member of BEL Audit Commitee. He is the Chairman of
the Audit Commitee in IFSL. He is also a member of Audit Commitees in: RAIL
and NCFL and a member of the Grievance Commitee in RAIL. He does not
hold any shares in BEL.
Mr M S Ramachandran is the former Chairman of the Indian Oil Corporaton
Ltd. He graduated in Mechanical Engineering from the College of Engineering,
Guindy, Chennai in 1966. Afer working for about 4 years in Ashok Leyland he
joined IOC in the year 1969. He worked with IOC for about 36 years tll 2005.
During these 36 years he held various responsible positons including that of
Executve Director, Director (Planning & Business Development) and fnally
as Chairman. During 1998-2000 he was Executve Director, Oil Co-ordinaton
Commitee. As head of the de facto regulatory body and an extended arm
of the Ministry of Petroleum and Natural Gas, led industry-wide supply and
logistcs planning including imports, inventory, management and eco-friendly
product introducton. He also oversaw the phased deregulaton of this sector,
including dismantling of the administered pricing mechanism and introducton
of market linked pricing.
Mr M S Ramachandran is a Director on the Boards of 5 companies other
than BEL: (1) Supreme Petrochemicals Ltd., (2) Ester Industries Ltd.,
(3) CALS Refneries Ltd. [Director (Chairman)], (4) Gulf Oil Corporaton Ltd.
and (5) ICICI Bank Ltd. He is a member of BEL Audit Commitee. He does not
hold any shares in BEL.
Mr Satyajeet Rajan was appointed as Government Director on BEL Board
of Directors w.e.f. 27th January, 2010. He is a graduate in Physics from IIT,
Kharagpur and a postgraduate in management from IIM, Calcuta is an IAS
Ofcer of Kerala Cadre. Mr Rajan has been exposed to an array of
developmental, administratve, legal experiences, magisterial and quasi-
judicial experiences as District Collector, both in the most advanced district
of Kotayam and the most backward district of Kasaragod of Kerala. He
contributed in various capacites to the industries, agriculture, fsheries and
welfare sectors in Kerala. He worked for 5 years in the Ministry of Coal & Mines
and in the Ministry of Informaton & Broadcastng in his earlier deputaton to
the post of JS. He has been handling exports division in the department of
defence producton since he joined the federal government afer working for
3 years in Kerala House. He has been on the Board of BEML since October
2007. Afer restructuring of the departmental functons recently, he has been
assigned the task of coordinatng electronics segment of the defence sector.
Mr Satyajeet Rajan is not on the Board of any other Company. He is a member
of BEL Audit Commitee. He does not hold any shares in BEL in his personal
capacity. However, he holds 100 shares on behalf of the Government of
India.
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ANNUAL REPORT 2009 - 10
Contents
Descripton PageNo.
Chairmans Leter 1
Corporate Vision, Mission, Values and Objectves 3
Board of Directors 4
Principal Executves, Bankers, Auditors 5
The Past Decade 6
Directors Report 7
Statement pursuant to Secton 212 of the Companies Act 1956 17
Management Discussion and Analysis Report 21
Corporate Governance Report 28
Auditors Report 38
Comments of the C&AG 42
Signifcant Accountng Policies 44
Balance Sheet 48
Proft and Loss Account 49
Schedules to Financial Statements (1-22) 50
Cash Flow Statement 68
Auditors Report on the Consolidated Financial Statements 69
Consolidated Financial Statements 74
1
ANNUAL REPORT 2009 - 10 ANNUAL REPORT 2009 - 10
ChairmansLeter
Dear Shareholders,
It gives me immense pleasure to communicate to you directly
through this leter about the achievements of your Company
during the past one year and the future outlook for the
Company.
Highlightsoftheyear
Your Company achieved a record turnover of Rs. 521,977
lakhs during the year 2009-10 as against Rs. 462,369 lakhs in
2008-09, registering a growth of 12.89%. Export sales has
increased from Rs. 8,243 lakhs in 2008-09 to Rs. 10,669 lakhs
in 2009-10, an increase of 29.43%. Turnover per employee
has increased from Rs. 38.66 lakhs in 2008-09 to Rs. 45.21 lakhs
in 2009-10. All the 9 manufacturing Units of the Company
have performed well and earned profts during the year.
The Proft Afer Tax for 2009-10 was Rs. 72,087 lakhs as against
Rs. 74,576 lakhs last year, a decrease of 3.34%. Networth
of the Company has increased from Rs. 378,368 lakhs in
2008-09 to Rs. 432,526 lakhs in 2009-10. R&D expenditure
as a percentage of sales has increased from 5.26% in
2008-09 to 6.05% in 2009-10.
Supplies to the Defence Sector consttuted 83.44% of the sales,
balance 16.56% being supplies to the civilian sector. Turnover
from indigenously developed products is 75%, balance 25% is
from products developed with foreign technology.
Some of the other highlights during 2009-10 are:
The Defence Minister inaugurated the state-of-the-art
manufacturing facility dedicated to the manufacture of
the Digital Flight Control Computer of the LCA (Tejas) on 2
Feb 2010. On the occasion, the Advanced Gun Fire Control
System for P-28 class of ships was also handed over.
The Artllery Combat Command & Control System
developed by BEL in associaton with DRDO was dedicated
to the Indian Army.
BEL Sofware Technology Centre certfed for SEI CMMI
Level 5.
BEL is the lead technology provider for the 2010 Common
wealth Games Queens Baton. BEL has conceptualized,
designed, engineered and manufactured all electronic
subsystems of the Baton including sofware development.
Futureoutlook
As you may be aware, BEL is the only company that has equal
business presence in all the 3 defence sectors of Army, Navy and
Air Force. BEL is planning to achieve a turnover of Rs. 10,000
crores by 2012-13. Segments like radar, communicatons and
electronic warfare will drive the Companys growth.
BEL is considering foray into new business areas like nuclear
power instrumentaton, railway instrumentaton, solar/clean
energy solutons and homeland security. Our internal teams
are analyzing these sectors. The idea is to get into these
felds in the next 3 to 4 years and generate an additonal
Rs. 500 crores business annually. We have chalked out a
plan to expand our product portolio without making large
investments, but by utlizing the existng infrastructure available
in the 9 Units of the Company across the country.
We are keen to forge joint ventures in areas such as missiles,
electro-optcs and sub-systems / category of radars, like radars for
civilian areas. We are already progressing work in this regard.
The rato of defence and non-defence business is likely to be
in the range of 80% defence and 20% civil in future as well.
Though there wont be much change in this rato compared to
the present mix, we are hoping to increase volume within this
proporton. Currently, BEL is the sole manufacturer of radar
systems in India. Radars will be one of our primary segments in
future as well. Defence Communicaton equipment and systems
will contnue to be our other major business segment. Command
and control systems, electronic warfare and electro-optcs are
going to grow in a big way in the coming years.
2
It is important for BEL to contnue to focus on technology and
new product development and provide R&D thrust across the
Company. We are initatng projects and programmes to further
strengthen our R&D base in the feld of Defence electronics in
which technology changes at a rapid pace.
The year 2010-11 is full of promise and challenge. The opening
of the defence sector to private partcipaton and DPP 2008
have impelled the Company to be far more compettve and
productve. The Company has strengthened its in-house R&D
and works closely with DRDO labs, other research and academic
insttutons at the inital stages of development itself to introduce
new products and systems.
This year, the Company will work for strategically important
projects like the Batle Field Surveillance System, next generaton
Electronic Warfare Systems and 3D Tactcal Control Radar.
The Company will launch many new systems including the
Akash Missile System and the Coastal Surveillance System. The
Company will achieve growth in ofset business and exports.
Governanceandsustainability
BEL endeavours to uphold the best practces in corporate
governance. By doing this, BEL provides the structure through
which the company objectves are set, and the means of ataining
those objectves and monitoring performance. A detailed report
on compliance of the guidelines on Corporate Governance as per
the Listng Agreement with Stock Exchanges and the guidelines
issued by the Department of Public Enterprises for CPSEs forms
part of the Directors Report.
The corporate performance of BEL measured in terms of the
triple botom line economic, environmental and social augurs
well to reinforce the image of BEL as a socially responsible
organisaton. Sustainability in BEL is the contnuing commitment
to behave ethically and contribute to economic development
while improving the quality of life of the workforce and
their families as well as the local community and society at
large.
Acknowledgements
I am grateful to the Board of Directors for their unwavering
support and guidance. I also take this opportunity to express
grattude to all our stakeholders, who have reposed trust in us
and extended their constant support, especially our customers,
business associates, Ministry of Defence, Defence Services and
shareholders. The dedicaton and commitment of our employees
and ofcers at all level contnues to be the major strength of the
Company. We shall make contnuous eforts to build on these
strengths to face future challenges and sustain the momentum
for proftable growth.
Best wishes,
Sincerely,
Bangalore AshwaniKumarDat
20 August 2010 Chairman & Managing Director
3
CorporateVision,Mission,ValuesandObjectves
Vision
To be a world-class enterprise in professional electronics.
Mission
To be a customer focused, globally compettve company in defence electronics and in other chosen areas of professional
electronics, through quality, technology and innovaton.
Values
*
Putng customers frst.
*
Working with transparency, honesty & integrity.
*
Trustng & respectng individuals.
*
Fostering team work.
*
Striving to achieve high employee satsfacton.
*
Encouraging fexibility and innovaton.
*
Endeavouring to fulfl social responsibilites.
*
Proud of being a part of the organisaton.
Objectves
*
To be a customer focused company providing state-of-the-art products & solutons at compettve prices, meetng
the demands of quality, delivery & service.
*
To generate internal resources for proftable growth.
*
To atain technological leadership in defence electronics through in-house R&D, partnership with defence / research
laboratories & academic insttutons.
*
To give thrust to exports.
*
To create a facilitatng environment for employees to realise their full potental through contnuous learning & team
work.
*
To give value for money to customers & create wealth for shareholders.
*
To constantly benchmark companys performance with best-in-class internatonally.
*
To raise marketng abilites to global standards.
*
To strive for self-reliance through indigenisaton.
4
BoardofDirectors
WholetmeDirectors
1. Mr Ashwani Kumar Dat, Chairman & Managing Director
2. Mr M L Shanmukh, Director (Human Resources)
3. Mr H S Bhadoria, Director (Bangalore Complex)
4. Mr I V Sarma, Director (Research & Development)
5. Mr M G Raghuveer, Director (Finance)
6. Mr H N Ramakrishna, Director (Marketng)
7. Mr Anil Kumar, Director (Other Units)
Part-tmeGovernmentDirectors
8. Mr Satyajeet Rajan, IAS, Joint Secretary (Electronics), Ministry of Defence, Department of Defence Producton
9. Lt Gen P Mohapatra, AVSM, Signal Ofcer-in-Chief, Army Headquarters
Part-tmeIndependentDirectors
10. Lt Gen (Retd) G Sridharan, Former Director General Quality Assurance, Ministry of Defence
11. Mr M S Ramachandran, ex-Chairman, Indian Oil Corporaton Ltd
12. Prof V K Bhalla, Professor, FMS, University of Delhi
13. Mr Anil Razdan, ex-Secretary to Government of India
PermanentSpecialInviteestoalltheBoardmeetngs
1. Air Marshal P K Barbora, PVSM, VM, ADC, Vice Chief of Air Staf, Indian Air Force
2. Vice Admiral Ganesh Mahadevan, AVSM, VSM, Chief of Material, Indian Navy
5
PrincipalExecutves
CORPORATEOFFICE
ChiefVigilanceOfcer
Mr Syed Kabeer Ahmad, IRSME
GeneralManagers

CompanySecretary
Mr C R Prakash
UNITS
ExecutveDirectors/GeneralManagers

BANKERS AUDITORS
State Bank of India HDFC Bank StatutoryAuditors BranchAuditors
State Bank of Hyderabad Canara Bank M/s R G N Price & Co M/s B R Maheswari & Co
State Bank of Patala Syndicate Bank M/s Argade Shyam & Co
State Bank of Travancore Vijaya Bank M/s N Koteswara Rao & Co
State Bank of Mysore Bank of Baroda
State Bank of Bikaner & Jaipur Andhra Bank
Mr G D Gupta
Mr Ramesh Kumar Marhatha
Mrs Elaine Mathias
Mr Jagdish Kumar Batheja
Mr Ramesh Chandra Nautyal
Mr H S Bhata
Mr Girish Kumar
Mr M V Gowtama
Mr Vipin Katara
Chennai
Mr D K Mehrotra
Ghaziabad
Mr Chandra Prakash
Executve Director
Mr Sunil Kumar Sharma
Mr Sushil Chand Jain
Hyderabad
Mr G Raghavendra Rao
Kotdwara
Mr R Chandrakumar
Machilipatnam
Mr Vijay Gundannavar
Panchkula
Mr N Suresh
Pune
Mr Amarendra Dasari
NaviMumbai
Mr R K Handa
CRL,Bangalore
Dr Ajit T Kalghatgi
Chief Scientst
CRL,Ghaziabad
Mr K C Pandita
Chief Scientst
Bangalore
Mr A A Mohan Ram
Executve Director
Mr Philip Jacob
Mr M S Venkatesh Murthy
Mr Amol Newaskar
Mr C Nageshwar Rao
Mr S Ramachandran
Mr Manmohan Handa
Mr A R Krishna Murthy
Mr P C Jain
Mr M Vijayaraghavan
Mr Sanmoy Kumar Acharya
6
ThePastDecade
(Rs. in lakhs)
Partculars 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Sales & Services 171533 194199 250802 279859 321209 353628 395269 410254 462369 521977
Value of Producton 178757 202998 253639 280783 323497 345003 401275 411137 527327 524788
Other Income 4382 2960 5511 9199 12228 11858 19781 27824 22997 37641
Materials 91928 108663 147907 147977 175823 185063 213522 206889 304106 302454
Salaries, Wages & Benefts 39423 36388 36761 43826 44161 43693 51968 65917 75579 100958
Depreciaton / Amortsaton 5192 4909 5528 6227 7147 7944 8459 9264 10560 11594
Interest 2464 2026 1197 506 906 2564 80 25 1077 53
Manufacturing & Other
Expenses (including Excise
Duty & Exceptonal items)
22141 25499 29141 44544 39092 32071 41780 39736 49319 42867
Proft Before Tax 21991 28473 38616 46902 68596 85526 105247 117130 109684 104502
Provision For Tax 6470 8505 12555 15292 23964 27225 33431 34456 35108 32415
Proft Afer Tax 15521 19968 26061 31610 44632 58301 71816 82674 74576 72087
Dividend 3200 4000 5600 8000 8960 11680 14400 16560 14960 15360
Equity Capital 8000 8000 8000 8000 8000 8000 8000 8000 8000 8000
Reserves & Surplus 56478 73854 92997 115582 150008 194931 249231 313295 370368 424526
Loan Funds 8226 8368 4075 3295 1536 881 171 138 121 73
Gross Block 80933 86265 94165 104096 112928 124031 132480 143076 157990 170217
Cumulatve Depreciaton /
Amortsaton
61970 66174 70943 75298 80994 86993 93913 101727 111245 121221
Inventory 84477 94130 94795 101529 106496 103714 124635 135157 242096 244871
Debtors 59993 62971 71224 66754 69912 101769 169341 205571 227653 216836
Working Capital 45519 59433 70441 84952 110903 151777 200996 263090 313556 365629
Capital Employed 64482 79524 93663 113750 142832 188817 239563 304438 360301 414625
Net Worth 62688 77712 97486 122908 157637 202705 257135 321295 378368 432526
Earning per Share (In Rupees) 19.40 24.96 32.58 39.51 55.79 72.88 89.77 103.34 93.22 90.11
Book Value per share
(In Rupees)
78.36 97.14 121.86 153.64 197.05 253.38 321.42 401.62 472.96 540.66
No. of Employees 14177 13572 13750 13038 12390 12262 12357 12371 11961 11545
7
Directors Report
To the Members,
On behalf of the Board of Directors of your Company, I am
delighted to present the Annual Report on the performance and
achievements of your Company for the year ended 31st March
2010 along with the Audited Statement of Accounts, Auditors
Report and the Report on the Accounts by the Comptroller and
Auditor General of India.
During the year 2009-10 your Company achieved a major milestone
by surpassing, for the frst tme, Rs. 500,000 lakhs mark in turnover.
By logging-in Rs. 521,977.40 lakhs turnover, BEL achieved excellent
ratng in turnover parameter for the year, as per the MoU with the
Government of India. This is against Rs. 462,368.89 lakhs turnover in
the previous year, registering a growth of 12.89 % over the previous
year. The Value of Producton during the year was Rs. 524,788.20
lakhs as against Rs. 527,327.27 lakhs in the previous year, marginally
lesser by 0.48 % over previous year. The Proft Afer Tax for the
year was Rs. 72,087.10 lakhs as against Rs. 74,575.97 lakhs in the
previous year. Value added per employee for the year was Rs. 18.69
lakhs, as against previous year's fgure of Rs. 18.11 lakhs. Supplies
to the Defence Sector consttuted 83.44 % of the sales, balance
16.56 % being supplies to the civilian sector.
All the nine manufacturing Units of your Company performed well
and earned profts during the year.
Operatng Results
The summarised operatng results for the years 2009-10 and
2008-09 are given below:
(Rs. in lakhs)
2009-10 2008-09
Value of Producton 524,788.20 527,327.27
Turnover (Gross) 521,977.40 462,368.89
Proft Before Depreciaton,
Interest and Tax
116,150.06 121,320.21
Interest 53.48 1,076.85
Depreciaton 11,594.23 10,559.77
Provision for Tax 32,415.25 35,107.62
Proft Afer Tax 72,087.10 74,575.97
Distributon of Value of Producton for 2009-10 is given below:
Amount
(Rs. in lakhs)
Percentage
Materials 302,453.65 57.63
Employee Cost 100,958.47 19.24
Other Expenses (Net) 5,226.02 1.00
Depreciaton 11,594.23 2.21
Interest 53.48 0.01
Provision for Tax 32,415.25 6.18
Proft Afer Tax 72,087.10 13.73
Total 524,788.20 100.00
Appropriatons & Dividend
Your Directors recommend the following appropriatons from the
disposable surplus:
(Rs. in lakhs)
Capital Reserve 90.77
Interim Dividend on paid up Capital of Rs. 8,000
lakhs @ Rs. 6 per share
4,800.00
Proposed Final Dividend on paid up Capital of
Rs. 8,000 lakhs @ Rs. 13.20 per share
10,560.00
Dividend Tax 2,569.66
Transfer to General Reserve 40,000.00
Balance retained in Proft & Loss Account 191,303.51
Your Company declared and paid during 2009-10 an interim
dividend @ Rs. 6 per share.
Signifcant Achievements
Major Orders Executed
Some of the important orders executed during the year include
supply of High Power HF Communicaton Sets, Frequency Hopping
VHF Transreceivers, UHF Handheld Radio, UHF Radio Relays,
Upgraded Fire Control Systems, Surveillance Radar Element,
Thermal Imager based Integrated Observaton Equipment, 3D
Central Acquisiton Radar (Rohini), Shipborne and Airborne
Electronic Warfare Systems, Night Vision Binoculars, Low Flying
Detecton Radars (Indra II), L Band Surveillance Radar (Mk III),
Ship-based 3D Surveillance Radar, Doppler Weather Radar, Digital
Mobile Radio Relay and Upgraded EVMs. These equipment have
been supplied to a wide range of customers from the Army, Navy,
Air Force, Defence PSUs, Paramilitary and others.
Among the many orders executed during the year, the following
merit special atenton:
Air Trafc Control Radar 33S Surveillance Radar Element (SRE)
Phase II: It is an S band Air Trafc Control Radar suited for
Terminal Control applicatons. It detects and automatcally
tracks a large number of aircraf within LFA (Local Flying Area)
under all weather conditons and is confgured for high
availability.
Radio Relay F - Low Band: It is a digital communicaton equipment
that provides fast, reliable and secure communicaton. It can
operate in a fxed frequency mode or in two diferent hopping
modes - conventonal and adaptve. The transmission security
in the network is increased considerably by the use of frequency
hopping techniques.
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Central Acquisiton Radar, Rohini: It is a 3D surveillance Radar
in S band. Stacked beam recepton gives 3D informaton
of height apart from range and bearing. It is developed jointly
with LRDE.
Indra II: L-band 2D low level Surveillance Radar caters to the vital
gap-flling role in air defence environment.
Frequency Hopping VHF Transceivers: A frequency hopping,
sofware confgurable ECCM radio (5W & 25W) in the VHF band.
It has in-built data communicaton features to enable transfer of
any type of fles / free text and has GPS functonality.
Thermal Imager Based Integrated Observaton Equipment: It
consists of a Digital Goniometer, Artllery Mounted Long Range
Thermal Imager and Laser Range Finder. Hand Held GPS is
interfaced to it through a cable. It is mounted on a Tripod stand
and used by Forward Observers of Artllery. Targets at a distance of
10 km and beyond can be located and their co-ordinates
computed.
Intelligent CCTV Surveillance System for Indian Parliament: BEL
won the prestgious order for the supply and installaton of this
system for Parliament. It involves integraton of large numbers of
cameras on an IP platorm with an integrated Command & Control
Centre. The intelligent features of the system include video and
audio content analysis, redundant recording, reportng and
response matrix and integraton with 3D modeling of Parliament
House and Tetra Communicaton System.
New Products
Some of the new products / systems introduced during the year
include Integrated Air Command and Control System, Advanced
Naval Gun Fire Control System for IN Ships, Gap Measuring
Device Mk III, Perimeter Security Jammer, Frequency Hopping HF
Transreceivers for paramilitary forces, Data Facility Kit for VHF radios
and V / UHF Protocol Analyzer.
A closer look at some of the new products:
IACCS: Integrated Air Command and Control System (IACCS)
is an automated Air Defence Command and Control Center
for controlling and monitoring of air operatons. It receives
data from diferent types of homogeneous / heterogeneous
Radars (2-D or 3-D), mobile observaton posts and various
other Air Force or civilian agencies to create real tme,
comprehensive recognised air situaton picture (RASP) at the
ADCC, which is an IACCS Command & Control Centre (C&C
Centre).
Advanced Naval Gun Fire Control System: This state-of-
the-art system, developed by BEL to be installed on board
IN Ships is a quick reacton, mult-sensor, mult-weapon,
short / medium / long-range defence system against
air / surface / shore targets on board naval ships. It consists
of 5 functonal sub-systems: Tracker, Weapon Control, Sight
Control, Combat Management System and Support Systems,
each of which can be used as an independent system.
Gap Measuring Device Mk III: It is an electro-optcal system
developed for accurate range fnding during day and
night. It's inbuilt computer calculates the height diference
between the two banks of same water body. It can measure
a minimum distance of 10 m and a maximum distance of
1.5 km.
Business Initatves
New business initatves during the year include:
For the last few years, the Indian Defence Forces are in the
process of modernising their infrastructure and their areas
of operatons. BEL has been proactvely partcipatng in
their modernisaton actvites. Development & Engineering
teams have been set up to work in the areas of Tactcal
Communicaton Systems, Batlefeld Management System,
Command Informaton Decision Support System, Future
Infantry Soldier System and High Data Rate Mult-band
Sofware Defned Radio.
BEL is discussing with technology leaders for forming joint
ventures in the areas of defence electronics, namely, Missile
Electronics & Guidance Systems, Airborne Electronic Warfare
products, civilian & select defence Radars. Some of these
proposals are in the advanced stage of discussions.
BEL is also discussing with BHEL for setng up a joint venture
Company (JVC) for Solar Photovoltaic manufacturing.
MoU signed with M/s Indus Teqsite, Chennai, for exploring
the setng up of JVC for development of digital subsystems
& test systems for Radars, Avionics, Electronic Warfare, etc.
MoU signed with M/s Thales Internatonal, France, for
exploring possibility of setng up of a JVC for civilian and
select defence Radars.
A medium term perspectve plan of your Company has
been drawn up for the period 2009-2014. The plan lists the
challenges, opportunites and strategies for the Company to
face the current defence business scenario due to increased
partcipaton by private companies. Also, an actvity has been
launched to study the preparedness of BEL to meet futuristc
customer requirements and achieve accelerated growth in
the next decade. The present capability of your Company in
technology, products and solutons vis--vis business growth
along with capability enhancements is being assessed.
9
Manufacturing Initatves
State-of-the-art Digital Flight Control Computer (DFCC)
manufacturing facility.
During the year your Company has set up a state-of-the-art
integrated manufacturing facility for assembly, inspecton
and testng of Digital Flight Control Computer (DFCC),
all under one roof. DFCC is a state-of-the-art, multple
redundant (improving its reliability, one channel will take
over if another fails) Digital Fly-By-Wire Flight Control System
of the Light Combat Aircraf (LCA), Tejas, which basically
controls the maneuvering (pitch, yaw and roll) of the aircraf.
The facility includes Thermal Cycling Chamber, Vibraton
Machine, Dehumidifying Chambers for storing PCBs, high-
resoluton inspecton tools for identfying process errors,
Automated Test Equipment for rigorous performance testng
and Engineering Test Staton for testng the DFCC unit. The
facility has ESD safe fooring and ESD safeguards for assembly,
inspecton and testng. Refow and wave soldering facilites
have been set up to enhance reliability. With this unique
facility, your Company has acquired the capability to meet
the requirements of the LCA programme.
Walk-in Thermal Chambers have been commissioned
which can test the performance of the products within a
temperature range of - 40C to +70C.
Spark 400 Machine has been commissioned for SMT
Assemblies.
Vibraton Machine has been installed to carry out vibraton
test of large subsystem / Test Rack of various projects like
Combat Management System and Central Acquisiton
Radar.
Rapid Thermal Cycling Chamber (Capacity 270 Ltr), an
Environmental Stress Screening chamber with very fast
temperature change rate, has been installed.
Electro-Platng Facility for Ferrous and Non-ferrous and
Magnesium metals has been established in the platng shop
at Machilipatnam Unit.
Exports
During the year, your Companys exports turnover registered
an impressive growth of 33 per cent from US $ 177.7 lakhs in
2008-09 to US $ 236.7 lakhs during 2009-10. The range of
products exported includes Composite Communicaton System,
Versatle Communicaton System, Fire-Control System, Radar
Warning Receiver, Enhanced Tactcal Computer, Night Vision
Devices, Data Link II, FM Transmiters, Crypt-fax, LED based trafc
signaling system, Secure Telephone, Non-Eye Safe & Eye Safe Laser
Range Finders, Vacuum Interrupter for Switchgears, Solar Cells,
Magnetrons, X-Ray Tube parts like Casings, Stators, Magnetc and
Electro-mechanical assemblies. These exports were made to
various countries including USA, UK, Israel, Suriname, Malaysia,
Indonesia, Singapore, Philippines, Czech Republic, Sri Lanka,
Russia, Zimbabwe, UAE, Switzerland, Belgium, Turkey, Bangladesh
and Germany.
Over the years, BEL has established its presence in many countries,
supplying number of equipment and components covering
various types of Radios, Radar and spares, Communicaton
System, Solar Products and Vacuum Interrupters. Export is a
thrust area for BEL. Your Company has been making eforts
for contnuous growth in this area and has also put-in specifc
eforts and investments to address the emerging ofset business
opportunites due to implementaton of ofset policy by the
Government of India.
During the last fnancial year, newer markets and ofset
opportunites have been addressed and orders worth US $ 583.3
lakhs have been obtained including US $ 480 lakhs pertaining to
ofset business segment. The orders obtained during the year,
include Naval systems such as Composite Communicaton System,
Versatle Communicaton System, ESM System, Electro-Optc Fire
Control System & their integraton onboard the Fleet Tanker
in Italy, airborne equipment such as Data Link II, IFF and Radar
Finger Printng system and Radar sub-systems. As on 1.4.2010,
your Company has an export order book of US $ 738.9 lakhs.
Finance
During the year, your Company has been able to meet its entre
fund requirement towards Capital investments and additonal
working capital needs without resortng to borrowings, through
efcient management of funds. Your Company has been able to
retain the highest ratng by ICRA, for both short term and long term
sanctoned bank limits, which will contnue to help in securing the
best rates for the services availed from the consortum banks.
During the year, many of the actvites related to accountng of
transactons have been suitably changed to take advantage of
the online ERP platorm, thereby reducing the transacton tme
of accountng. With passage of tme the availability of centralised
data on a real tme basis is expected to result in the desired
improvement in the informaton fow, thereby improving the
decision making process further.
The inventory positon of your Company has marginally increased
from 169 days of value of producton as on 31st March 2009 to
172 days as on 31st March 2010. Eforts are on to ratonalise the
procurement process further with a view to achieving further
reducton in the inventory levels. The level of debtors to sales has
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improved from 180 days as on 31st March 2009 to 152 days as on
31.03.2010. This reducton in debtors has been brought about
by an increase in the collecton of both opening debtors and the
current year debtors, which could be achieved due to beter even
fow of sales throughout the year, aided by constant follow up and
regular reviews.
The working capital positon will be closely monitored to ensure
that the improvement seen in the positon of debtors and
inventory is sustained. During the coming year, it is planned to
take up the job of IFRS implementaton and your Company will
be able to prepare the accounts in line with the IFRS requirement
within the scheduled dead line, as stpulated by the Accountng
Standards Board.
Your Company does not have any public deposit scheme at
present. However, the matured past public deposits is Rs. 38.55
lakhs as on 31.3.2010. Of these, 34 deposits amountng to
Rs. 36.50 lakhs are claimed but not paid as these accounts
are frozen on advice of Karnataka Lok Ayukta. Remaining
past deposits of Rs. 2.05 lakhs as on 31.3.2010 is unclaimed.
The entre amount of public deposits outstanding as on
31.3.2010 is included in the Current Liabilites, Schedule No. 12
of the Balance Sheet.
Performance against MoU
Your Company has been signing a Memorandum of Understanding
with its Administratve Ministry, Ministry of Defence (MoD) every
year. The performance of your Company against the MoU for
2009-10 is Excellent. The MoU between the MoD and BEL for the
year 2010-11 was signed on 4 March 2010. Sales target set in the
MoU for 2010-11 is Rs. 535,000 lakhs for achieving Very Good
performance ratng and Rs. 561,750 lakhs for achieving Excellent
performance ratng.
Order Book Positon
The order book positon of your Company as on 1 April 2010 was
Rs. 1,135,000 lakhs, out of which orders worth Rs. 447,800 lakhs
are executable during 2010-11. The balance will get executed in
2011-12 and beyond.
Research & Development
Research and Development is the core strength of BEL and focused
atenton was given during the year for nurturing and monitoring
of R&D for the development of new technologies and products
for business generaton. Other than in-house eforts, BEL R&D
engineers had actve interactons with DRDO and other natonal
research and development agencies and academic insttutes and
also with foreign partners for joint development eforts.
Your Company contnued its R&D actvites in all the areas
of its business segments, namely: Radars, Naval Systems,
Communicaton, Encrypton, Electronic Warfare, Command
Control Systems, Opto-electronics, Tank & Weapon electronics,
Fire Control Systems, Avionics, Civilian equipment & systems
and Components during the year. Development & Engineering
Divisions atached to all the Strategic Business Units of
Bangalore and Other Units concentrated on product
development in the respectve areas of allocated business
segments. Central D&E and the two Central Research Laboratories
of the Company supported the D&E Divisions by way of
developing specialised core modules and other technology and
sofware modules for the product development.
The analysis of turnover of your Company for the year 2009-
10 indicates that 57% of the turnover is due to BEL designed
products, 18% of the turnover due to DRDO and other indigenous
agencies developed products and remaining 25% is due to
products for which technologies were acquired through foreign
ToTs.
During the year, R&D Divisions of BEL have completed more
than 30 projects each in the areas of equipment / systems and
components. Some of the new products / systems introduced
during the year include Integrated Air Command and Control
System (IACCS), Advanced Naval Gun Fire Control System for
IN Ships, Gap Measuring Device MK-III, Statc Jammers, Frequency
Hopping HF Transreceiver for Paramilitary forces, Data Facility Kit
for VHF radios, V / UHF Protocol Analyzer etc. Brief informaton
about some of the introduced products are given below:
(a) Advanced Naval Gun Fire Control System: This is a quick
reacton mult-sensor and mult-weapon based defence
system mounted on board naval ships for short / medium / long
range defence system against air / surface / shore targets.
(b) Statc Jammers: Statc Jammers is a counter RCIED system
meant for protecton of high risk and high value targets
viz. Ship Building Centre etc. The system is installed in
shelters, which are located at pre-defned positons in order
to provide protecton to the entre Security Threat area.
This is a statc broad band transmitng equipment used to
mute the receivers likely to be operated remotely by hostle
transmiters in V / UHF, GSM & CDMA bands.
(c) Frequency Hopping HF Transreceiver: This is a DSP based
light weight 20W High Frequency man pack radio providing
complete soluton to the short-range communicaton
requirements in the HF band. The radio provides Voice,
Data, Telegraphy and Flash Message Communicaton.
Communicaton reliability has been enhanced with the
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introducton of Automatc Link Enhancement (Best Call)
feature. Frequency Hopping feature of the radio provides
secure transmission and ant-jamming protecton.
(d) V / UHF Protocol Analyzer: This equipment is used for analysis
and decoding of wide range of signals. The equipment
facilitates search and monitoring of signals, demultplexing
of both Frequency Division and Time Division Multplexing
structures and reconstructon of voice, fax, VFT (Voice
Frequency Telegraph) and modem data.
Scientsts from Central Research Laboratories and other R&D
divisions of BEL have contributed 38 technical papers in the
natonal and internatonal journals during the year. R&D
Engineers of BEL have submited 2 Patent applicatons during the
year.
Quality
The Company has adopted the Six Sigma methodology about a
decade back for achieving breakthrough improvements. Quality
Insttute of Bharat Electronics has been impartng training on Six
Sigma since July 1999 and has trained 1,078 ofcers so far. During
the year, 265 six-sigma projects were completed, resultng in cost
reducton, process improvement and customer satsfacton.
BEL has adopted the CII-EXIM Bank Business Excellence Model
since 2002 and select Units / SBUs have been partcipatng in the
Award scheme of this Model every year since then. This Model
depicts that Excellent Organisatons achieve and sustain superior
levels of performance that meet or exceed the expectatons of all
their stakeholders.
During the year, four of our Units / SBUs applied for the CII-
EXIM Bank Award for Business Excellence. While MILCOM SBU
became the frst BEL Unit to receive higher level Commendaton
Certfcate for Signifcant Achievement, other three, viz.
Ghaziabad Unit, Panchkula Unit and Components SBU received
Commendaton Certfcate for Strong Commitment to Excel
under this Award scheme.
With a view to insttutonalise the business excellence in the
Company, an internal BEL Business Excellence Award scheme
has been introduced from the year 2009-10. Under this, all
Units / SBUs of the Company will partcipate in this award scheme
every year and best four Units / SBUs will be identfed and
rewarded. Introducton of this scheme is likely to bring a healthy
competton among the Units / SBUs to achieve higher levels of
excellence.
As a part of our endeavor to enhance the customer satsfacton
level, we have been conductng customer satsfacton surveys
every year. This survey is being conducted through a third party
to bring in objectvity. Based on the feedback obtained from the
survey, correctve actons are taken to improve our processes so
as to enhance the satsfacton level of customers. During the
year 2009-10 the customer satsfacton survey was conducted
for six products, each belonging to a diferent Unit / SBU. Overall
customer satsfacton index was found to be 82%.
SAP Implementaton
Based on the study and recommendaton by Tata Consultancy
Services, your Company undertook implementaton of SAP across
all Units / Ofces of the Company. Implementaton of SAP R / 3
including Payroll, Product Lifecycle Management module at all
Units and Ofces of BEL was completed in a phased manner by July,
2008. A number of improvements, checks and validatons have
since been incorporated in the system based on user feedback.
Standard SAP package does not cater to several requirements
such as Material Gate Pass, Visitors Pass etc. The following add
on modules have been developed and released to users during
2009-10: Material Gate Pass System, Visitors Gate Pass System,
Vendor Payment Informaton System, Quality Control Circles
Monitoring System, Six Sigma Projects Monitoring System and
Contract Monitoring System
Implementaton of the following new dimension modules is
in progress: supplier Relatonship Management (SRM) and
Knowledge Management (C Folders) modules have been
confgured and tested. Employee Self Service (ESS) module has
been confgured and testng is in progress. Customer Relatonship
Management (CRM), Strategic Enterprise Management (SEM) and
Supply Chain Management (SCM) modules are under confguraton.
All the above modules are planned to be implemented during
2010-11.
Following new tools / modules have been licensed from SAP.
These tools / modules are planned to be implemented during
2010-11.
Test Data Migraton Server (TDMS): This facilitates migraton of
select test data for testng of new developments.
Adobe Forms: This facilitates users to generate informaton in an
of line mode and upload the data to SAP directly.
Business Objects: This module facilitates presentaton of reports
to Senior Management to see reports in a fexible and dynamic
manner.
Procurement for Public Sector (PPS) Module: This module
facilitates e-procurement with provision for online bidding by
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vendors, 2 Part Bidding, Accountng of Earnest Money Deposit,
opening of Bids by Tender Opening Commitee etc.
Human Resources
The employee strength of your Company was 11,545 as on
31.3.2010 as against 11,961 as on 31.3.2009. The Company
employed 2447 women employees as on 31.3.2010. As a refecton
of the Company operatng in high tech area, it employed 3420
engineers and scientsts as on 31.3.2010
The partculars of SC / ST and other categories of employees as on
31.3.2010 are as under:
Category of Employees
Executves Non-Executves
Group A Group B Group C Group D
Scheduled Caste 763 78 1,295 117
Scheduled Tribe 222 06 129 30
OBC 712 67 999 60
Ex-Servicemen 83 48 328 86
Physically Handicapped 72 09 168 18
To address the learning and organisaton development needs,
various HRD training programmes were organised in Companys
Learning & Development Divisions. These included in-house
developed modules as well as modules developed and imparted
with the assistance of various outside HR specialists. In additon,
various management development programmes as well as
technology programmes were organised during the year through
premier training insttutons for all grades of executves. The
Company-wide per capita training days for the year was 3.0.
Some of the specifc HR initatves during the year are discussed
separately as part of the Management Discussion and Analysis
Report atached.
Industrial Relatons & Welfare
Industrial relatons contnued to be harmonious throughout your
Company. During the year pay revision, due from 1.1.2007, was
implemented for Board level and below Board level executves.
Wage setlement with non-executve employees, also due from
1.1.2007, was concluded in May, 2010. Various programmes
were organised for the beneft of all sectons of employees and
their families, some which were exclusively for women employees
and SC / ST employees to improve their awareness in legal issues,
safety maters, etc. Special programmes were organised for
diferently-abled employees on the topics of Team Building,
Interpersonal Skills, Habits for Excellence & Improving Quality of
Life. Besides various statutory and voluntary welfare measures,
the Company encourages various cultural and sports events for its
employees.
Your Companys comprehensive medical scheme covers all
employees, their dependent family members as well as retred
employees and their spouses. BEL Hospital at Bangalore extends
outpatent medical treatment to the residents of neighbouring
villages and employees of BEL associate insttutons / societes
in additon to its own employees, their dependents and retred
employees / their spouses. Welfare programmes organised by
BEL Hospital during the year includes: Pulse Polio Immunisaton
programme, administering of Vitamin A soluton to children
between 9 months and 5 years as measure of preventon of
blindness and to increase resistance to infecton, Screening
program, counselling and preventve measures for respiratory
diseases, Eye camp for screening Retnal diseases, Medical camp for
Heart check-up was conducted for retred employees, programme
for employees, family members for detecton and preventon of
cancer, etc.
Educatonal insttutons run by the Company for educaton of
children of employees and also of neighboring villages, performed
well during the year.
Awards & Recogniton
Important awards and recognitons received during the year by your
Company and its employees include:
Raksha Mantri's Awards for Import Substtuton, Design
Eforts, Innovaton and Best Performing Division among
DPSUs. (2007-08)
Commendaton Certfcate of SCOPE Meritorious Award for
R&D, Technology Development & Innovaton (2007-08)
SODET Award 2008-09 for two of BEL's engineers in the
Gold and Bronze category for Technology Innovaton and
Development, respectvely.
Dun & Bradstreet Corporate Award 2009 in the category of
Electrical and Electronic Equipment sector.
Indian Semiconductor Associaton Technovaton Award
for the Best Electronic Product of the Year 2010 for the
Pre-shower 32 Channel Silicon Strip Detector supplied to
CERN, Geneva, for the Big Bang Experiment.
Concern Age Care Award in recogniton of BEL's contributon
towards elderly care.
Ghaziabad Unit's Six Sigma project, 'Productvity
Improvement in Assembly of STARS - V Accessory Cables,
was adjudged frst in the Lean Manufacturing Category by
the Symbiosis Center for Management & Human Resource
Development, Pune.
Ghaziabad Unit won the Internatonal Safety Award for the
18th tme from the Britsh Safety Council, UK.
13
Environment Management
Your Company is commited to clean and healthy environment
and has been maintaining the surroundings free from polluton.
As an organisaton accredited to ISO 14001:2004 standard, the
Company has great regard to environment and puts in every efort
to prevent polluton of any kind in all its actvites. BEL adopts
cleaner technology, zero efuent discharge, rain water harvestng
techniques, conservaton of natural resources, use of renewable
energy etc., to name a few, in its endeavour towards maintaining
a cleaner environment. The signifcant features of the initatves
are illustrated below.
Cleaner Technology: Eforts have been made to prevent polluton
through introducton of cleaner technology. Changing over to
Cyanide-free Zinc and Copper platng in electroplatng process
has resulted in eliminaton of use of hazardous Cyanide.
Alternatve electronic components have been introduced
in many of the designs to exclude the hazardous efects of
materials such as Polybrominated compounds, Hexavalent
Chromium, Mercury, Beryllium Oxide, PVC and Lead. Use
of Energy efcient devices introduced in the equipment
designs results in resource conservaton in additon to
reducing the operatng cost. Other measures undertaken
include minimising signifcant environmental impacts by
replacement / change of Hazardous operaton / process / chemicals
with Non-Hazardous processes like replacement of Ozone
depletng substance like Trichloroethylene with Ozone friendly
Non-chlorinated solvent, replacement of Asbestos sheet roof
with Aluminum sheets, improvement in Elctro-Platng
processes and operaton by modernisaton of Electro-Platng
and ETP, provision of Acoustc Enclosures for Noise generatng
systems, etc.
Water Management: Rainwater harvestng and innovatve
recharging of bore wells enable the Company to collect the runof
water and recharge the ground water table. The large-scale
rainwater-harvestng reservoir at Bangalore unit has a capacity
of 1,700 lakhs litres with expected annual yield of around 2,340
lakhs litres. Rainwater harvestng reservoirs are set up in other
Units also. During the year two more rain water harvestng sites
were installed at Ghaziabad Unit covering a very wide catchment
area of rain water. By Rainwater harvestng and recharging of bore
wells ground water yield has improved. Water sofening plant
of 1.00 lakh litres per day is in operaton at Hyderabad Unit for
sofening the ground water to reduce the scaling etc.
Waste water generated in the manufacturing process is treated
to meet reusable standards and recycled for producton purpose.
In the same way domestc waste water generated in the factory
and colony is treated and recycled for hortculture purpose.
Emission To Air: Emission to air is checked through stack monitoring
and with appropriate air polluton control equipments. Emissions
passing through chimneys are treated to bring down the level of
pollutants much below the stpulatons of State Polluton Control
Boards (SPCBs).
Hazardous Waste Management System: The problem associated
with generaton of hazardous waste is addressed at root cause
level itself. By utlising appropriate chemicals in the waste water
treatment, less sludge is generated in the process of chemical
detoxifcaton. BEL has ted up with the State Polluton Control
Boards Treatment, Storage & Disposal Facility operators for
disposal of landfllable solid hazardous waste. The hazardous
wastes are disposed in a scientfc manner as per the guidelines of
State Polluton Control Boards.
Biomedical Waste: Biomedical wastes generated in hospital and
medical centers are collected and disposed of scientfcally as per
the regulatory guidelines.
OHSAS 18001(2007) - In additon to caring for the environment,
BEL equally respects the well being of its workforce through
OHSAS 18001(2007) implementaton. Bangalore Complex and
Ghaziabad Unit are certfed for OHSAS 18001: 2007.
Other Initatves: Your Company has taken acton to mitgate
climate change as per the Natonal Policy by establishing two
Wind Energy power plants, one 2.5 MW plant near Davanagere
during 2006-07 and another 3 MW plant near Hassan during
2007-08. The two Wind Energy power plants together have
generated 106.5 lakhs units of energy during 2009-10 and has
resulted in reducton in CO
2
emission to the tune of 9934 tons.
The Company has taken up replacement of two old centrifugal
chillers, which were running with ozone depletng CFC 11 with
new energy efcient screw chillers using eco-friendly refrigerant
R134a. The replacement has resulted in energy savings to the
tune of 1.5 lakhs KWhr per year. Old air compressors, blowers
& Air Handling Units have been replaced with energy efcient
ones leading to energy conservaton of around 75,000 KWhr
per year. In order to keep the environment of the factory and
township green, 1,35,000 trees and 3,60,000 Sq Mtrs of lawn
are being maintained at Bangalore Complex. A herbal park has
been developed inside the Ghaziabad factory premises. During
the year 1000 Jatropha Plants (Bio diesel crops) were planted in
Bangalore Complex. A green belt has been developed around Test
Platorms at Hyderabad Unit.
Subsidiary / Joint Ventures
Your Companys subsidiary at Pune, BEL Optronic Devices Ltd,.
(BELOP) recorded a turnover of Rs. 5,874.48 lakhs as against the
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turnover of Rs. 3,114.67 lakhs in the previous year, an increase
of 89 % over the previous year. BELOP achieved Proft Afer
Tax of Rs. 227.42 lakhs as against a net loss of Rs. 358.05 lakhs
in the previous year. BELOP manufactures mainly Image
Intensifer Tubes (I.I. Tubes). These Tubes are supplied to the
Defence customers and also used in the Night
Vision Devices manufactured by BEL. Though
the subsidiary has performed well during the
year as compared with its performance in the previous year,
it stll has problems on the technology front. Indian Army,
has shifed its requirement from II Generaton I.I. tubes to
higher specifcaton I.I. Tubes for which technology does not
exist with BELOP. Eforts are on to source technology for the
higher specifcaton tubes from available sources in the world
market. Meanwhile, BELOP is importng kits in SKD / CKD form
to manufacture higher specifcaton Tubes to take care of the
immediate requirements of the customers. Due to this, the
contributon is low and proftability is afected.
In accordance with Secton 212(8) of the Companies Act 1956 (the
Act) your Company has obtained exempton from the Govt. from
ataching the Balance Sheet, Proft & Loss Account, Auditors Report,
Directors' Report, etc., of the subsidiary Company to the Balance
Sheet of BEL. Hence, Annual Accounts of the subsidiary Company,
BEL Optronic Devices Ltd., are not atached to the Balance Sheet
of BEL. A copy of the Annual Accounts of BELOP and the related
informaton will be made available upon request by any member
of BEL or BELOP. The Annual Accounts of BELOP are kept for
inspecton by investors at the registered ofce of BEL and BELOP.
Any investor interested to inspect the same may please contact the
Company Secretary of BEL or BELOP. A statement as per Secton 212
of the Act relatng to the subsidiary Company, BELOP, is annexed to
this report. Further, the informaton required to be disclosed as per
the directons while grantng exempton under Secton 212(8) of the
Companies Act 1956 is provided in this Annual Report.
The Joint Venture Company (JVC) with General Electric, USA, viz.,
GE BE Pvt Ltd., manufacturing CT Max and other latest version
X-Ray Tubes contnues to perform well. BEL supplies some parts
required for the products manufactured by this JVC. GE BE
Pvt Ltd., achieved a turnover of Rs. 50,928.95 lakhs as against
Rs. 52,820.49 lakhs in the previous year. The Proft Afer Tax was
Rs. 6,608.33 lakhs as against Rs. 5,249.55 lakhs in the previous
year. The JVC declared and paid 100% dividend for the year
2009-10 and BEL received Rs. 260 lakhs as dividend from the JVC
on BELs share of investment.
The other JVC, viz., BEL Multtone Pvt Ltd., jointly promoted by BEL
and Multtone plc, UK was set up to supply, install and service Private
Paging Systems and Pagers. The JVC is presently in shell stage with
no business transactons being efected, and acton is in progress
to close down this Company, as there are no business prospects for
paging systems in the country.
Consolidated Accounts
Consolidated Financial Statements of your Company and its
Subsidiary and Joint Venture Companies are atached to this
Report.
Vigilance
The performance of Vigilance Department during 2009-10 has
been satsfactory. 99.6% of the Executves of the Company
have fled their Annual Property Returns. 1189 Purchase
Orders / Contracts including 536 high value Orders / Contracts
have been reviewed / scrutnised during the year and found
to be in order. As per the CVC / CTE Guidelines, 2 teams for
Inspecton of Works Contracts and 2 teams for Inspecton of
Purchase Orders have been consttuted. During 2009-10, 12
Works Contracts and 8 high value POs have been inspected
by in-house inspecton teams and 2,341 Regular / Surprise
inspectons were conducted.
During the year 225 Executves and 10 Non-executves have taken
part in Vigilance Awareness Training Programme. 35 Executves
& 50 Non Executves working in sensitve areas for 3 years and
above have been transferred to diferent posts.
In terms of CVCs guidelines for Leveraging Technology to ensure
transparency through efectve use of website, the following
informaton has been made available in the BEL website:
Applicaton forms for Registraton of Subcontractors / Vendors
online for being included in the Approved Vendors List and
applicatons for recruitment have also been facilitated
online.
Details of awarded Contracts / Purchase Orders valuing
more than Rs. 10 lakhs in respect of works contracts, service
contracts, capital items and non-producton items are being
published on BEL website.
Details of awarded Contracts / Purchase Orders issued on
nominaton / single tender basis value exceeding Rs. 5 lakhs
are being published on BEL website.
Details of awarded Purchase Orders / Sub Contract Orders
for producton items with a threshold value of Rs. 100 lakhs
and above are being published on BEL website.
Vendor Payments Informaton System is made available on
BEL website.
15
In additon to the above, a new Vigilance page has been put
on BEL website (www.bel-india.com). E-procurement is under
development and it is expected to be implemented shortly.
Integrity Pact
The Central Vigilance Commission (CVC) has advised Government
organisatons to adopt Integrity Pact (IP) voluntarily in their major
procurement actvites. IP essentally envisages an agreement
between the prospectve vendors / bidders and the buyer,
commitng the persons / ofcials of both sides not to resort to
any corrupt practces in any aspect / stage of the contract. Only
those vendors / bidders, who commit themselves to such a pact
with the buyer, would be considered competent to partcipate in
the bidding process. The CVC guidelines further advises CPSUs
to appoint Independent External Monitors as approved by the
CVC to oversee the compliance of obligatons under the IP. BEL is
pursuing the adopton of IP in compliance with CVC guidelines.
Implementaton of Ofcial Language
Being a Government Company, BEL is commited to complying
with the Ofcial Language policies of the Government of India.
Nine Units / Ofces have been notfed under rule 10(4) of OL
rules and orders have been issued under rule 8(4) of OL Rules
for those having profciency in Hindi to do their Ofcial work in
Hindi. Eforts are on to ensure the progressive use of Hindi in all
spheres of actvites of the Company. Hindi workshops for those
having working knowledge in Hindi were conducted during the
year. Companys website is available in both Hindi and English
version and eforts are on to progressively have the entre website
in bilingual.
During the year the Commitee of Parliament on Ofcial
Language has visited the Companys Regional Ofce at Kolkata
and ofcials of the Ministry of Defence inspected the Pune Unit
and CRL, Bangalore. The Drafing and Evidence Sub commitee of
Parliament inspected the Ghaziabad Unit. Ministry of Home Afairs
(MHA) ofcials also inspected the Regional Ofce at Kolkata.
Implementaton of RTI Act
The informaton required to be provided to citzens under Secton
4(1)(b) of the RTI Act 2005 has been posted on the website of
Company, www.bel-india.com. The informaton posted on the
website contains general informaton about the Company, powers
and dutes of employees, informaton about decision-making, rules,
regulatons, manuals and records held by BEL, directory of the
Companys ofcers, pay scales, procedure for requestng additonal
informaton about the Company by citzens and associated request
formats. During the year 2009-10 the Company received and
atended to 91 requests for informaton under RTIA.
Directorate
Following changes took place in the Directorate of your Company
since the last report. Three Independent Directors, viz. Mr Anil
Razdan, ex-Secretary to Government of India, Prof. VK Bhalla,
Professor, FMS, University of Delhi and Mr MS Ramachandran,
ex-Chairman, Indian Oil Corporaton Ltd., have been appointed
w.e.f. 27 November 2009. Mr Satyajeet Rajan, Joint Secretary
(Electronics), Ministry of Defence has been appointed as
part-tme Ofcial Director w.e.f. 27th January, 2010 in place of
Mr Gyanesh Kumar, Joint Secretary (Shipyards), Ministry of
Defence. Mr Anil Kumar has been appointed as Director (Other
Units) w.e.f. 3rd February, 2010.
Directors Responsibility Statement
Pursuant to the provisions under Secton 217(2AA) of the
Companies Act, 1956 your Directors state:
(i) that in the preparaton of the annual accounts, the applicable
Accountng Standards have been followed and in respect of
Accountng Standard 17, necessary explanaton for departure
has been given in Note No. 19 of the Notes to Accounts
(Schedule 21);
(ii) that the directors have selected such accountng policies
and applied them consistently and made judgments and
estmates that are reasonable and prudent so as to give a
true and a fair view of the state of afairs of the Company at
the end of the fnancial year and of the proft of the Company
for the year;
(iii) that the directors have taken proper and sufcient care
for the maintenance of adequate accountng records in
accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of the Company and for preventng
and detectng fraud and other irregularites;
(iv) that the directors have prepared the annual accounts on a
going concern basis.
Auditors
Pursuant to Secton 619(2) of the Companies Act 1956, the
Comptroller and Auditor General of India appointed M/s R G N
Price & Co., Chartered Accountants, Chennai as Statutory Auditors
for the year 2009-10 for audit of accounts of Bangalore Complex,
Hyderabad and Chennai Units and Corporate Ofce. M/s B
R Maheswari & Co, Chartered Accountants, New Delhi, were
reappointed as Branch Auditors of Ghaziabad, Panchkula and
Kotdwara Units for 2009-10. M/s Argade Shyam & Co, Chartered
Accountants, Pune were reappointed as Branch Auditors for
Pune and Taloja Units for 2009-10. M/s N Koteswara Rao & Co,
Chartered Accountants, Guntur were reappointed as Branch
Auditors for Machilipatnam Unit for 2009-10.
16
Auditors Report
Auditors Report on the Annual Accounts for the fnancial year
2009-10 and Comments of the Comptroller & Auditor General
of India under Secton 619(4) of the Companies Act, 1956 are
appended to this report.
Corporate Governance
A report on Corporate Governance along with a Compliance
Certfcate from the Auditors as prescribed under the Listng
Agreements with the Stock Exchanges on which BELs shares are
listed as well as Government Guidelines on Corporate Governance
for Central Public Enterprises, is annexed to this Report.
Management Discussion and Analysis Report
Management Discussion and Analysis Report required under
the Listng Agreements with the Stock Exchanges on which BELs
shares are listed as well as Government Guidelines on Corporate
Governance for Central Public Enterprises, is annexed to this
Report.
Other Disclosures
Informaton required to be disclosed in accordance with
Secton 217 (1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Partculars in the Report of Board
of Directors) Rules 1988 regarding conservaton of energy,
technology absorpton and foreign exchange earnings and outgo, is
atached to this report.
The partculars of employees to be given as per Secton 217(2A)
of the Companies Act 1956, read with the Companies
(Partculars of Employees) Rules 1975 are appended to this
report.
Acknowledgement
Your Directors take this opportunity to acknowledge with a
deep sense of appreciaton the support and co-operaton
received from the Government of India, Ministry of Defence,
Departments of Defence Producton, Defence Acquisiton,
Defence Finance and Defence Research & Development
Organisaton. The Board also gratefully acknowledges
the patronage extended to the Company by its esteemed
customers, partcularly the Indian Army, Indian Navy, Indian
Air Force, para-military forces and others. We thank the
Comptroller and Auditor General of India, Chairman, Members
and employees of the Audit Board, Statutory Auditors and Branch
Auditors, Company's Bankers, collaborators and vendors. The
Board appreciates the untring eforts and contributon by the
employees at all levels, which enabled your Company to achieve
the signifcant performance during the year. The Board of Directors
also wishes to place on record its appreciaton and grattude to all
the shareholders / investors for the trust and confdence reposed
in the Company and look forward to their contnued support and
partcipaton in sustaining the growth of your Company in the
coming years.
For and on behalf of the Board
Place : Bangalore Ashwani Kumar Dat
Date : 20th August 2010 Chairman & Managing Director
17
Annexure to Directors Report
Statement PurSuant to Section 212 of the comPanieS act 1956 relating to SubSidiary comPany
1. Name of the Subsidiary : BEL Optronic Devices Limited
2. Holding Companys Interest at the end of the fnancial year 2009-10
(as at 31.3.2010) :
(a) The number of equity shares held : 17,00,223 shares of Rs. 100 each fully paid
(b) Extent of interest in the capital of subsidiary : 92.79%
3. The net aggregate amount, so far as it concerns members of the holding
Company and is not dealt with in the Companys accounts, of the subsidiarys
profts afer deductng its losses or vice versa
i) for the fnancial year of the subsidiary as aforesaid : Rs. 211 lakhs
ii) for the fnancial years / period of the subsidiary since it became the
holding Companys subsidiary
: Rs. 1,978 lakhs (cumulatve proft)
The net aggregate amount of the profts of the subsidiary afer deductng
its losses or vice versa
i) for the fnancial year of the subsidiary aforesaid : NIL
ii) for the previous fnancial years of the subsidiary since it became the
holding Companys subsidiary : NIL
so far as those profts are dealt with, or provision is made for those losses,
in the Companys accounts.
Place : Bangalore C R Prakash M G Raghuveer Ashwani Kumar Dat
Date : 25th June 2010 Company Secretary Director (Finance) Chairman & Managing Director

information for the inVeStorS aS reQuired by the miniStry of corPorate affairS
Informaton related to BEL Optronic Devices Ltd., Subsidiary Company of Bharat Electronics Ltd., for the Financial Year
Ended 31.3.2010:
(Rs. in lakhs)
(a) Capital : 1,832.29 (f) Turnover (Gross) : 5,874.48
(b) Reserves & surplus : 1,285.91 (g) Proft before Taxaton : 258.19
(c) Total assets (Gross Block) : 5,011.38 (h) Provision for Taxaton : 30.76
(d) Total liabilites : 134.39 (i) Proft Afer Tax : 227.42
(e) Details of investment : NIL (j) Proposed dividend (%) : NIL
18
Annexure to Directors Report (Contd.)
Informaton required to be provided under the Companies
(Disclosure of partculars in the report of Board of Directors)
Rules, 1988
A. Conservaton of Energy
(a) Energy conservaton measures taken during the year
2009-10
Energy conservaton measures taken during the year
2009-10 include the following:
Incorporaton of variable frequency drives for
AHUs, cooling tower motors and centrifugal fans.
Provision of PVC curtains for the identfed doors
of air-conditoned area to minimise losses.
Optmising compressed air operaton through
decentralised compressed air systems.
Replacement of old Reciprocatng Chillers in AC
plants with energy efcient screw chillers for
meetng variable cooling load demand.
KVA demand management by improving power
factor using automatc power factor controllers.
Installaton of servo voltage stabilizers for
optmising lightng voltage and Energy
consumpton.
Use of energy efcient light ftngs in
modernisaton projects and day light harvestng.
Use of solar water heatng systems for hot water
applicatons.
Incorporaton of wind-driven roof ventlators
based exhaust systems.
(b) Additonal investments and proposals being
implemented for reducton of consumpton of
Energy
Additonal investments made during the year for
implementng the measures at (a) above, was around
Rs. 169 lakhs.
(c) Impact of measures at (a) and (b) above for reducton
of energy consumpton and consequent impact on the
cost of producton of goods
The electricity consumpton in KWhrs per each lakh
rupee of producton has come down to 100 units during
2009-10 from 112 units during 2008-09.
The electricity consumpton for the year 2009-10 is
51.8 MKWhrs, same as in 2008-09 in spite of additonal
facilites added and increased producton actvites.
The Companys two wind Energy power plants, 2.5 MW
plant near Davanagere and 3 MW plant near Hassan
together generated 106.5 lakhs units of energy during
2009-10 and has resulted in reducton in CO
2
emission
to the tune of 9,934 tons.
B. Technology Absorpton
Form B
R&D Actvites
1. Specifc areas in which R&D was carried out by the
Company
During 2009-10, the Company has carried out R&D
actvites in all the areas of its business as already
mentoned in the Directors report under secton
Research and Development. Some of the completed
R&D projects during the year in the various business
areas of the Company are:
- Radar : Support vehicles for Akash
System, revised confguraton
of the Upgraded Batle Field
Surveillance Radar
- Communicaton : High data rate VHF Radio,
Compact VHF Handheld Radio,
CNR man pack Radio, UHF
Satcom System, BEACON MK-
III, MHA Exchange (MEX-089),
test bed and interim system for
Tactcal Communicaton System
- Electronic Warfare : V / UHF Communicaton
Jammer, Wide Band Surveillance
Receiver, Additve Scrambler
Analyzer & Descrambler
- Command
Control System : Update of Batlefeld
Surveillance System, Test Bed
for F-INSAS
- Control System
and Gun Upgrades : LYNX U1 Gun Fire Control System
for P-28 class of ships, Stabilized
Turret System for EON-51
- Opto-electronics : TI Sight for IGLA , Cooled TI
with 640x512 detector, Laser
Target Designator, Eye-safe LRF
Monocular (class-1)
- Tank Electronics : Digital Intercom System DAVIS,
Indigenisaton of Auto Loading
of Gun mechanism
19
- Other Products : Electronic Baton for
Commonwealth Games 2010,
Vehicle Underside Scanning
System, Prateeksha Rail Mobile,
Ship Jety connectvity network,
EVM for TN State Electon
Commission
2. Benefts derived as a result of R&D actvites
As a result of R&D actvites in the Company, a large
number of new products were developed, which will
bring new business to the Company in future. Other than
development of new business for the Company, R&D
actvites save foreign exchange for the Company due to
indigenous development of products and indigenisaton
of components & assemblies. R&D actvites promote
self-reliance in the area of technology development.
3. Future plan of acton
R&D plan made for each R&D division of BEL for the
next 3 years based on customers perspectves and
market feedback, will be closely monitored for the
progress of the projects. Infrastructure, capital items
and requisite manpower as required for the R&D
divisions will be allocated on priority. Interactons with
DRDO, other Natonal Labs and design agencies and
academic insttutons will be further strengthened.
Interactons with foreign companies for taking up of
joint development projects will be encouraged where
necessary.
4. Expenditure on R&D
During 2009-10, BEL has spent a sum of Rs. 31,594.64
lakhs on R&D. The expenditure on revenue account
was Rs. 29,161.21 lakhs and on capital account was
Rs. 2,433.43 lakhs. The total expenditure as percentage
of turnover during the year was 6.05%.
5. Technology absorpton, adaptaton and innovaton:
(a) Eforts in brief, made towards technology
absorpton, adaptaton & innovaton
R&D divisions of BEL take interest in the absorpton
of state-of-art technologies in the areas of BELs
business acquired either through indigenous or
imported routes other than its own in-house
developments.
In respect of indigenous technologies, BEL R&D
divisions have made eforts to interact with
various Defence Research and Development
Organisatons laboratories, other Natonal
laboratories, Private design houses, academic
insttutons etc., for either technology absorpton
of state-of-art products developed by them or by
taking up of joint development programmes with
them.
During 2009-10, R&D Engineers of BEL have
completed development of products like TETRA
System from C-DAC technology, Man pack
version of Combat Net Radio from DRDO (DEAL)
technology, Integrated Fire Detecton and
Suppression System for BMP from DRDO (CFEES)
technology, BEACON MK-III from DRDO (CAIR)
technology etc.
(b) Benefts derived as a result of the above eforts
BEL Engineers are able to absorb the indigenous
technologies as a result of close interactons
with DRDO and other Natonal Labs. This helps
to commercialise the products at BEL and
provide product support to the customers. BEL
engineers try to bring out updates of the existng
technologies and apply the technologies acquired
in diferent applicatons. All these eforts help to
commercialise state-of-art technologies for the
customers, develop further business, save foreign
exchange and promote self-reliance.
(c) Informaton regarding technology imported
during the last 5 years
During the last 5 years, certain technologies
of interest from various countries have been
imported and productonised at BEL and brought
to the level of indigenous manufacture for cost
reducton and improving indigenous content.
BEL engineers make efort to absorb / assimilate
the imported technologies to provide necessary
product support to the customers, try to bring
out updates for these products and apply the
knowledge gained in the development of new
products for business development.
C. Foreign Exchange Earnings and Outgo
Detailed informaton on export has been provided in the
Directors Report. Foreign Exchange Earnings on account of
export (FOB) was Rs. 9,936.71 lakhs as against Rs. 7,227.96
lakhs in the previous year. Foreign Exchange Outgo was
Rs. 2,14,573.86 lakhs as against Rs. 2,43,789.68 lakhs in the
previous year.
20
Annexure to Directors Report (contd.)
Informaton as per Secton 217(2A) of the Companies Act 1956 read with the Companies (Partculars of Employees) Rules 1975 and
forming part of the Directors Report for the year ended 31st March 2010
Sl.
No.
Name of the
Employee
Shri/Smt.
Designaton/
Nature of Duty
Age
Yrs.
Previous
Employment/
Positon Held
Qualifcaton
Date of
Joining
Experience
Yrs.
Gross
(a) Statement showing the partculars of employees who were in receipt of remuneraton of not less than Rs. 24,00,000/- per annum
during the fnancial year 2009-10
1 A K Dat Chairman & Managing Director 59 Nil BE (Mech) 11.1.1973 37 4,516,834
2 M L Shanmukh Director (Human Resources) 54 GGM (HRD)
at Container
Corpn. Ltd.
BA, LLB 14.4.2004 30 5,056,118
3 H S Bhadoria Director (Bangalore Complex) 59 Nil BE (Mech) 12.1.1973 37 4,403,148
4 I V Sarma Director (Research & Development) 58 Nil BE (E&C) 10.2.1975 35 3,483,045
5 M G Raghuveer Director (Finance) 58 GM(Fin.),
Tungabhadra
Steel Products
Ltd.
B.Sc, FCA 27.5.1997 33 3,176,917
6 H N Ramakrishna Director (Marketng) 57 Nil BE
(Electronics)
1977 33 2,830,470
7 Gokhale S S Addl. General Manager 54 Nil B.E. (Mech.) 6.10.1978 31 2,725,869
8 N A Narasimha
Murthy
Chief Regional Manager, New York 56 Nil B.E. (Mech.) 16.2.1978 32 2,566,236
9 Jayprakash S Dy. Chief Regional Manager, New York 35 Nil B.E. (Mech.) 1.7.1997 12 3,289,807
(b) Statement showing the partculars of employees who were in receipt of remuneraton of not less than Rs. 2,00,000/- per month
during the part of the fnancial year 2009-10.
1 V V R Sastry Chairman & Managing Director 60 Nil BE (E&C) 1.5.1969 40 3,260,452
2 P R K Hara Gopal Director (Finance) 60 Jt. Managing
Director
in Andhra
Pradesh
Gas Power
Corporaton
Limited
B.Com
FCA
5.7.2002 37 3,446,544
3 N K Sharma Director (Marketng) 60 Nil
B.Tech
(Mech)
3.11.1971 37 3,294,723
21
Management Discussion and Analysis Report
A) Industry Structure and Developments, Strengths,
Weaknesses, Opportunites and Threats, Major Initatves
undertaken and planned to ensure sustained Performance
and Growth
(a) General outlook of economy, industry in which the
Company operates, Government Budget, partcularly
the Defence Budget and how these impact the
Company:
The economy has grown at 7.4% in 2009-10 and
is expected to grow at 8% in the coming year. India
is emerging as a strong growing economy. This is
substantated by this year's positve growth in the
general Index of Industrial Producton (IIP) compared
to negatve growth of last year. The cumulatve growth
in index of manufacturing sector is 10.9% during
April-March 2009-10 compared to previous year and
this has resulted in growth of overall General Index of
IIP to 10.4%.
India is currently the 10th largest defence spender in the
world with a 3rd highest growth rate. The Government
of India has increased the total defence allocaton from
Rs. 14,170,300 lakhs to Rs. 14,734,400 lakhs. This
increase in defence budget and the modernisaton
plans of defence services has the potental for providing
enhanced growth opportunity for the Company's
products and services.
The Defence Public Sector Undertakings (DPSUs) have
dominated the defence industry in the past. This
scenario is likely to change with the introducton of
new Defence Procurement Policy (DPP) allowing more
partcipaton from private companies to manufacture
defence products. On the other hand, the growing
Indian defence market is atractng major global defence
equipment manufacturers to compete for business in
India.
The above scenario provides an opportunity as well
as a challenge to BEL. The challenge to BEL is to keep
pace with technological developments so that state-
of-the-art products can be ofered to the Defence
customers. BEL is taking proactve steps to protect and
further consolidate its leadership positon in the Indian
Defence Market while at the same tme acceleratng
the eforts to get into new business areas, aligned with
its core strengths.
The amendments in DPP have given an opportunity to
BEL for forming JVs with leading global defence players
and acquire required critcal technologies. The above
approach will also put BEL in a positon, wherein it
can source state-of-the-art subsystems / products
from such Joint Ventures and play the role of a system
integrator for large strategic defence systems.
The ofset clause in DPP has also created an additonal
opportunity for BEL, with the foreign vendors
approaching BEL for partnership to fulfll their ofset
obligatons. Export revenues of BEL have grown due
to ofset contracts and this trend may contnue in the
coming years.
(b) SWOT Analysis
Strengths:
Clearly defned Vision, Mission, Objectves and
Values.
Good image and reputaton resultng from
performance and track record.
Company under Ministry of Defence - Strong
customer relatonships
In-depth understanding of Defence Market in
India.
Good R&D base - Technology and new product
development.
Close relatonship with DRDO Labs.
Good infrastructure and manufacturing facilites.
Well-established systems and procedures,
including use of advanced ERP.
Skilled and commited workforce with excellent
domain knowledge.
Weaknesses:
Not proactve enough in providing futuristc
solutons to customers.
Dependence on defence market.
Time to market - long product development cycle
tme.
Slower response tme.
Limited value additon in system integraton
projects.
Inability to atract top class talent.
Inadequate Internatonal business knowledge and
exposure.
22
Opportunites:
Expanding defence acquisiton plans.
"Ofset" business - Strategic alliances and access
to global business.
Large investments in infrastructure, energy and
e-governance projects.
Homeland security business.
Maintenance, Repair and Overhaul (MRO)
business.
Upgrade programmes of defence.
Access to critcal technology.
Threats:
Changes in defence procurement policies - growing
competton with private industry partcipaton in
defence sector.
Rapid changes in technology.
Global sourcing of technology - Non-availability
and exorbitant cost.
Emergence of Joint Venture companies of foreign
OEMs with Indian private industry.
(c) Major initatves undertaken and planned to ensure
sustained performance and growth of the Company
1. Technology updaton and R&D:
i. Challenges:
Core technologies of BELs business involve
applicatons of fast changing technological felds
like Electronics, IT and Sofware. Some of the
most challenging tasks of R&D Engineers of BEL
are to keep abreast with latest technologies in
the various felds of BELs business areas, quickly
master the emerging technologies and apply
them during the development of new products.
The technologies required to manufacture various
products in the areas of BELs business are required
to be developed and upgraded contnuously to
meet emerging user requirements including
overcoming of obsolescence issues. The need for
constant technological upgrades juxtaposed with
the need for maintaining legacy systems places
an enormous responsibility on BEL to be not
only current in the world class technologies but
also to be innovatve in fnding means to tackle
obsolescence of legacy products and systems.
ii. Measures:
BEL has responded to the above challenges with
a positve note and has identfed various
measures to meet them. The measures include
strengthening the technology development
process through short, medium and long term
technology roadmaps, increased investments
in R&D and setng up of a Company-wide
knowledge management system to harness
the complete potental of the R&D engineers
and sharing of accumulated R&D knowledge in
various felds amongst the R&D engineers. BEL is
enhancing its eforts for in-house developments
and also strengthening interactons with DRDO
Labs, other natonal research laboratories and
R&D organisatons including academia to enhance
indigenous developments. BEL is also taking
adequate initatves for joint developments with
reputed foreign companies to quickly harness
specialised technologies into the new products.
iii. Initatves:
Following are some of the new initatves
undertaken by BEL in the areas of R&D and
technology development during the year
2009-10:
A new Central Research Laboratory has been
established at Bangalore for carrying out
research in new technologies of Electronic
Warfare Systems and Electro-optcs.
A Radar Chair has been set up by BEL at the
Indian Insttute of Science for encouraging
research in the fronter areas of Radar science
and technologies.
BEL Sofware Technology Centre, Bangalore
has been upgraded to CMMI Level-5
Certfcaton to take up high end sofware
module developments.
Scope of in-house Excellence R&D Awards
Scheme has been enhanced to accommodate
several new categories of awards for further
encouragement of excellent R&D work at
BEL.
Obsolescence management process for legacy
equipment has been simplifed by linking
SAP with obsolescence Database Sofware
2. Manufacturing:
State-of-the-art Digital Flight Control Computer
(DFCC) manufacturing facility
The Company has set up a state-of-the-art
integrated manufacturing facility for assembly,
inspecton and testng of Digital Flight Control
Computer (DFCC), all under one roof. DFCC is a
state-of-the-art, multple redundant (improving
its reliability, one channel will take over if another
23
fails) Digital Fly-By-Wire Flight Control System
of the Light Combat Aircraf (LCA), Tejas, which
basically controls the maneuvering (pitch, yaw
and roll) of the aircraf.
The facility includes Thermal Cycling Chamber,
Vibraton Machine, Dehumidifying Chambers for
storing PCBs, high resoluton inspecton tools
for identfying process errors, Automated Test
Equipment for rigorous performance testng and
Engineering Test Staton for testng the DFCC
unit. The facility has ESD safe fooring and ESD
safeguards for assembly, inspecton and testng.
Refow and wave soldering facilites have been
set up to enhance reliability. With this unique
facility, BEL has acquired the capability to meet
the requirements of the LCA programme.
Walk-in Thermal Chambers have been
commissioned which can test the
performance of the products within a
temperature range of - 40C to +70C.
Spark 400 Machine has been commissioned
for SMT Assemblies.
Vibraton Machine has been installed to carry
out vibraton test of large subsystem / test
rack of various projects like Combat
Management System and Central Acquisiton
Radar.
Rapid Thermal Cycling Chamber (Capacity
270 Ltr), an Environmental Stress Screening
Chamber with very fast temperature change
rate, has been installed.
Electro-platng Facility for ferrous and
Non-ferrous and magnesium metals has
been established in the platng shop at
Machilipatnam Unit.
3. New initatves taken, diversifcaton / expansion plans
BEL is adaptng to changing business environment
with an objectve to assess its positon with emphasis
on structured business development actvity for
understanding and ofering products / solutons to
customers proactvely by having a medium-term
perspectve plan in place.
(i) Preparaton of 5 year perspectve plan for the
Company (2009-14)
A medium-term perspectve plan of the Company
has been prepared and released for the period
2009-14. The major systems and products of BEL
for next 5 year dispatch period and R&D plans for
the Company have been projected. The primary
input considered for these projectons is the
marketng leads based on inputs from defence
services and other inputs by direct interactons
with customers. The perspectve plan also lists the
challenges, opportunites and strategies for BEL to
face the current defence business scenario due to
increased partcipaton by private companies.
Financial performance of the Company for the
next 5 years based on the dispatch plans has
been projected. Various initatves in technology
development and R&D, human resource
management, quality, cost reducton have
been brought out, including export and ofsets
strategies and new business initatves planned.
Few selected areas for priority acton during the
plan period also have been identfed.
(ii) Benchmarking of BEL with leading Indian / foreign
companies in the defence business.
Benchmarking of BEL at a Company level has been
carried out with the help of an external consultant.
The Indian / foreign companies against which
BEL has been benchmarked are medium and big
sized companies operatng in the areas similar to
major business areas of BEL. The key functonal
areas of the organisaton have been considered
for comparing performance and positon of BEL
against the targeted companies. The fndings
show BEL as one of the strong companies among
the Indian players. However in comparison
with Internatonal companies, some gaps have
been observed which needs to be studied and
improved.
(iii) Strategic alliances for emerging businesses
through co-development, co-producton, product
manufacture through technology transfer.
BEL has been entering into strategic alliances with
Indian and foreign players to ensure business in a
compettve market scenario. These alliances are
for addressing various emerging markets where
BEL tes up with suitable partners / defence labs
for collaboraton. It is being pursued proactvely
and addressed at SBU / Unit level in their area of
operaton and strength. BEL has been pursuing
the following partnerships:
Technical collaboraton agreement with M/s
Indra Sistemas, Spain for Radar band ESM
system (for Indian Navy).
Development and ToT for Ant Submarine
Warfare (ASW) system with NSTL, India.
24
Co-operaton on sofware defned Radio
systems technology with M/s Thales.
Development for medium power Radar with
DRDO.
(v) Forming of Joint Ventures / acquiring technology
companies (for both existng / emerging business
areas)
BEL is discussing with reputed foreign / Indian
players for forming Indian Joint Ventures in the
areas of defence electronics, namely, missile
electronics and guidance systems with Rafael,
Israel and with Thales, France for civilian and
select defence Radars. These proposals are in
the advanced stages of discussions. BEL is also
discussing with BHEL for setng up a JVC for Solar
PV manufacturing.
MoU signed with M/s Indus Teqsite, Chennai for
exploring the setng up of JVC for development
of digital subsystems and test systems for Radars,
avionics, electronic warfare etc.
(v) Identfed areas of diversifcaton
Currently BEL is engaged in executng large strategic
weapon system contract received from MoD and
many similar programs are on the anvil. This has
necessitated BEL to assess and create necessary
infrastructure to handle such large programs.
However, in order to sustain and enhance the
growth of the Company and be in the forefront
of professional electronics domain, BEL has plans
to diversify into the following new non-defence
areas:
ATM Radars.
Solar PV business.
Critcal infrastructure (Government) protecton
systems.
Intercepton and monitoring systems
Terrestrial wireless, satellite communicaton,
email, etc.
Next generaton optcal networking solutons.
Nuclear, Biological and Chemical (NBC) warfare
defence and protecton.
Mobile WiMAX broadband networks.
Lightweight multpurpose shelters.
Satellite On The Move (SOTM) systems.
Terminals for micro fnancing agencies.
Pilot project for railway
communicaton / disaster management.
(d) Specifc Measures on Risk Management, Cost Reducton
and Indigenisaton
1. Risk Management:
The Risk Management Commitee consttuted
by the Company has identfed the various risks
associated with diferent areas of operatons
of the Company and recommended risk
mitgaton measures. These measures are being
implemented. To address the product and
technology related risks, two separate Divisions
have been set up at the Corporate Ofce, viz.,
(i) "Strategic Business Planning Group" and (ii)
Technology Planning Group.
The Company has adopted the Project
Management concept to minimise / mitgate the
risk of losses on liquidated damages due to delays
in executon of projects and project managers and
associated executves are being trained on latest
Project Management systems / tools.
The marketng functon is also being strengthened
and marketng executves are imparted intensive
training on marketng skills in a compettve
environment. To enhance marketng skills to
compete in a fast changing market, marketng
executves are contnuously nominated for a
6-months residental Marketng program at IMI,
New Delhi. The program is focused on providing
key marketng knowledge and skills required for
business.
All the assets of the Company are covered by
Insurance. Necessary measures are being taken
to manage risks associated with FE variaton and
other areas of Finance, HRD, etc.
2. Cost Reducton:
In the era of global and private partcipaton in
Defence sector, there is a constant and compelling
need for the Company to remain compettve in all
areas of its operatons. One of the approaches to
retain this compettve edge is to constantly strive
to achieve reducton in costs in an environment in
which technological superiority has to be matched
with compettve price. To give more impetus to
this, BEL has adopted cost reducton strategy as one
of the thrust areas from late 90s. Various avenues
like design change, alternate material, labour,
indigenisaton, alternatve sourcing, inventory
management, process / yield improvement,
energy conservaton, quality initatves like Six
Sigma, QCC, Suggestons, Value Engineering are
identfed for cost reducton. During the year
25
2009-2010 more than 50 task forces were working
on cost reducton in various Units / SBUs and
the Company achieved a cost reducton of
Rs. 19,400 lakhs.
3. Indigenisaton:
Self-reliance is one of the objectves of the
Company to meet the strategic needs of the
naton. In view of the increasing competton
in the open market era, indigenisaton actvity
has become one of the thrust areas of BEL to be
cost compettve. Each of the units of BEL takes
measures towards indigenisaton actvity for the
high cost imported assemblies & modules used in
the BEL products under manufacture.
Apart from indigenisaton of imported
components / assemblies, indigenised technology
at BEL is developed in the following ways.
Development of indigenous technology
through in house R&D eforts at BEL.
Development of indigenous technologies
jointly between natonal labs (like DRDO,
ISRO, CSIR, C-DOT, academic insttutons,
etc.,)
Product ionisaton of indigenous technologies
of interest of BEL developed by various
indigenous design houses in India.
System & turnkey projects designed by BEL
and realised through integraton of bought
out subsystems for faster availability of
desired systems to customer.
During the design stage, all out eforts are
made to identfy the indigenous source of
procurement for components / modules.
The source identfcaton is carried out with
the help of a well-developed online (SAP)
Approved Vendor Directory (AVD) of all
components / modules available across 9
units of BEL spread across the Country.
Every year the Company introduces new
products as well as upgrades the existng
products through indigenous eforts. BEL
has been receiving prestgious RM awards
in the category of import substtuton. The
turnover from indigenously developed
products during 2009-10 was 75%.
B) Internal Control System and its Adequacy
The Company has an adequate system of Internal Controls
implemented towards achieving efectveness and efciency
of operatons, reliability of fnancial reportng and compliance
with applicable laws and regulatons.
The system comprises well defned organisaton structure,
pre-identfed authority levels and procedures issued by
management covering all vital and important areas of
actvites, viz., Budget, Purchase, Material Management,
Works, Finance & Accounts, Human Resources, etc. These
procedures are updated from tme to tme and are subject
to strict compliance.
The Company has implemented ERP (SAP) System in all of its
manufacturing Units / Ofces. This has further strengthened
the Internal Control Systems with its in-built checks and
balances at various levels of operatons.
The Company has an Internal Audit Department which
contnuously reviews compliance with Companys
procedures, policies, applicable laws and regulatons with
well defned annual audit programme. The Company
revised the Internal Audit manual during the year to
ensure adequate audit coverage under SAP environment.
Signifcant audit observatons are reported to the
management level Audit Commitee / Audit Commitee of
Board of Directors. The Internal Audit functon is headed by
General Manager (Internal Audit) reportng to the Chairman
& Managing Director.
The Internal Control Systems are reviewed by the Audit
Commitee. The adequacy of Internal Control procedures
is reviewed and reported by the Statutory Auditors in their
Audit Report. BEL being a Government Company, is subject
to Government Audit also.
C) Financial / Operatonal Performance
1. Strategy & Objectves
The main objectves of the fnancing strategy of the
Company are as follows:
(i) To make available the required funds through
internal accruals and / or by efectve cash fow
management with a view to have the least interest
cost.
(ii) To maintain the highest credit ratng in the short-
term to be able to raise funds at most economical
rate if required.
(iii) To meet the expectatons of the various
stakeholders.
(iv) To efectvely execute tax planning thereby
improving the post tax yield to the shareholders.
(v) To maintain highest standards of fnancial
reportng by following the mandatory as well as
recommendatory accountng standards.
26
Each of the objectves listed contnue to be
accorded the highest priority by BEL. During the
fnancial year, the entre working capital needs
and the funding for capital expenditure was met
from the internal resources without resortng to
any external borrowing.
2. Performance Highlights
(Rupees in lakhs)
Year ended
31.3.2010
Year ended
31.3.2009
Gross Sales / Income from
Operatons
521,977.40 462,368.89
Total Expenditure Before
Interest
457,873.56 439,563.88
Proft Before Interest and Tax 104,555.83 110,760.44
Operatng Margin
(PBIT / Gross Sales) Rato
20.03 % 23.95 %
Proft Afer Tax 72,087.10 74,575.97
No. of Days Inventory / Value
of Producton (DPE Method)
172 169
No. of Days Sundry
Debtors / Sales & Services
152 180
Current Rato 1.74 1.67
Debt Equity Rato 0.00017 0.00032
3. Analysis of Financial Performance of 2009-10
Turnover registered a growth of 12.89 %, from
Rs. 462,368.89 lakhs in 2008-09 to Rs. 521,977.40
lakhs in 2009-10.
Value of Producton has marginally decreased
from Rs. 527,327.27 lakhs in 2008-09 to
Rs. 524,788.20 lakhs in 2009-10. Reducton of
0.48 %.
3.34% decrease in Proft Afer Tax, from
Rs. 74,575.97 lakhs in 2008-09 to Rs. 72,087.10
lakhs in 2009-10.
Reduced PAT to Sales Rato, from 16.13% in
2008-09 to 13.81 % in 2009-10.
Sales Per Employee has increased from Rs. 38.66
lakhs in 2008-09 to Rs. 45.21 lakhs in 2009-10.
Earning Per Share has decreased from Rs. 93.22 in
2008-09 to Rs. 90.11 in 2009-10.
Book Value Per Share has increased from
Rs. 472.96 in 2008-09 to Rs. 540.66 in 2009-10.
Networth has grown from Rs. 378,368.15 lakhs in
2008-09 to Rs. 432,525.59 lakhs in 2009-10.
D) Development in Human Resources
In order to address the Learning and Organisaton
Development needs, various Management Development
programs as well as technology programs were organised in
the year 2009-10. These programs were organised through
premier training insttutons for employees at diferent
levels. The Company-wide per capita training mandays for
the year 2009-10 was 3.
Some of the important HRD initatves during the year
included:
Competency modeling interventon has been initated
to identfy the critcal competencies having an impact
on business outcomes that had to be demonstrated
at all levels across the Organisaton. The competency
model for BEL has 9 competencies and was arrived at
with the help of an external consultant. A total of 70 job
descriptons and competency profles have been made
for senior executve roles. Development centres have
been conducted through an external HR Consultant
for 61 senior executves including GMs / AGMs and
individual development plans have been made for
addressing their developmental needs.
Outward bound learning program was conducted
for executves to internalise learning from the
performances in realistc situaton. This training takes
the partcipant away from the comfort zone, in an
informal risk-free environment, thereby enabling the
partcipant to experiment and explore their hidden
potental. Three cross-functonal teams - a total of 70
partcipants were sent for the training during the year
2009-10.
To enhance marketng skills to compete in a fast
changing market, 21 executves completed a 6-months
residental marketng program at IMI, New Delhi. The
program was focused on providing key marketng
knowledge and skills required for business.
In order to strengthen the leadership capability, three
Programs on 360 Degree Feedback and Leadership
were conducted and 60 AGMs / Sr DGMs / DGMs
atended the program.
Four Leadership Review Workshops were conducted
in various units with assistance of Prof T V Rao from
M/s TVRLS. 71 DGMs / Sr DGMs / AGMs atended the
program. The acton plans were reviewed.
To enable our senior executves to be change agents,
4 programs on Leading the Change was conducted at
MDI, Gurgaon. 83 executves in DGM / Sr DGM / AGM
grade atended.
In order to hone Project Management skills, executves
were trained in Project Management and 58 executves
are PMP certfed.
27
Technology Programmes to enhance the knowledge
of BEL engineers in various technology areas were
conducted: Finite Element Method, basic course on
Digital Signal Processing, advanced course on Digital
Signal Processing, VHDL, Embedded System Design,
RF Measurement, Basics of LAN / WAN technologies,
Advanced Data Communicaton, Designing with
VHDL and essentals of FPGA, basics of Digital
Communicaton and advanced FPGA.
E) Corporate Social Responsibility (CSR)
BEL is commited to contributng to the socio-economic
development of its stakeholders and the business decisions
of the Company will be in line with its obligatons of CSR.
The Companys sustained initatves shall aim at earning
the goodwill of the community and enhancing the image
of the Company. Pursuing this objectve, the Company
has prepared a policy on Corporate Social Responsibility.
The CSR policy has laid down the following broad areas for
providing beneft to the stakeholders:
Health care
Educaton
Rural development
Environment protecton
Conservaton of resources
During the year the Company has approved the following CSR initatves with a total fnancial outlay of Rs. 259.3 lakhs:
Name of Agency Project
BEL Ashankura Special School, Bangalore Augment facilites in the School
University Visveswaraya College of Engineering, Bangalore Augment facilites in the Electronics Laboratory
Akshay Patra Foundaton, Bangalore Assistance for procurement of food distributon vehicles
Karnataka Parent's Associaton for Mentally Retarded Citzens,
Bangalore
Assistance for procurement of a vehicle
Nightngales Medical Trust, Bangalore Assistance of establishing a comprehensive Dementa
Care Centre
Helpage India, New Delhi Adopton of one mobile medical van
Helpage India, New Delhi Assistance for procurement of equipments for
physiotherapy centre for elderly people
Blind Relief Associaton, New Delhi Literacy for the Blind - Braille Producton Centre
Equipments
People for Animals, New Delhi Assistance for Mobile Animal Unit / Ambulance
Neighbouring villages near BEL Navi Mumbai Unit and health centers
situated in Navi Mumbai
Provide solar street lightng
NGOs in Hyderabad - MEANS, FBA - Home for the desttute, Save Child,
Lakshya Sadhana and ZP High School, Mallapur, Hyderabad
Providing materials for infrastructure
Govt. Hospital, Kotdwara Providing assistance for infrastructure upgradaton
Govt. Primary School, Budanpur District Providing assistance for renovaton and infrastructure
upgradaton
District Administraton - Panchkula Providing solar trafc lights near BEL, Panchkula Unit
Govt. of Karnataka Chief Minister's Relief Fund for Flood Relief
Govt. of Andhra Pradesh Chief Minister's Relief Fund for Flood Relief
28
Corporate Governance Report
Philosophy and Code of Governance
BELs philosophy of Corporate Governance is based on the principles
of honesty, integrity, accountability, adequate disclosures, legal
compliances, transparency in decision-making and avoiding
conficts of interest. BEL gives importance to adherence to
adopted corporate values and objectves and discharging social
responsibilites as a corporate citzen. BEL believes in customer
satsfacton, fnancial prudence and commitment to values. Our
corporate structure, business and disclosure practces have been
aligned to our Corporate Governance philosophy.
BEL strives to transcend much beyond the basic requirements of
Corporate Governance focusing consistently towards value additon
for all its stakeholders. In keeping with its professional approach,
BEL is implementng the precepts of Corporate Governance in leter
and spirit.
Board of Directors
Compositon
The compositon of BEL Board of Directors is in line with Clause 49
of Listng Agreements with Stock Exchanges and the guidelines on
Corporate Governance issued by the Government of India. BEL
Board of Directors consists of 7 Wholetme Directors (Executve
Directors), including the Chairman & Managing Director, 2
Govt. Directors (Non-executve Directors) and 9 Non-executve
Independent Directors. In additon, as per Govt. directves, the
Vice Chief of Air Staf, Indian Air Force and the Chief of Material,
Indian Navy are Permanent Special Invitees to all the Board
Meetngs of the Company. Of the nine Independent Directors, one
had resigned in January, 2009 and seven completed their tenure
in May, 2009. Of these eight casual vacancies, three were flled up
during the year. The competent authority in the Government is in
the process of appointng fve more Independent Directors.
Meetngs and Atendance
During the fnancial year ended 31.3.2010, seven board Meetngs
were held and the maximum interval between any two meetngs
was 90 days. The board meetngs were held on 15.4.2009,
24.4.2009, 24.6.2009, 24.7.2009, 11.8.2009, 30.10.2009 and
29.1.2010. Details of atendance of the Directors at the Board
Meetngs, Annual General Meetng and the number of other
directorships / commitee memberships held by them during
2009-10 etc., are given below:
Sl.
No.
Directors
Meetngs
held during
respectve
tenure of
Director
No. of
Board
Meetngs
atended
Atendance
at the last
AGM held
on 25 Sep
2009
No. of other
directorships
held
* Number of Commitee
membership across all
companies
As Chairman As Member
Wholetme (Executve) Directors
1 Mr V V R Sastry (up to 30.4.2009) 2 2 No 2 Nil Nil
2 Mr A K Dat 7 7 Yes 1 Nil 1
3 Mr P R K Hara Gopal (up to 31.7.2009) 4 4 No 2 2 -
4 Mr M L Shanmukh 7 7 Yes 1 1 1
5 Mr H S Bhadoria 7 7 Yes 2 Nil 1
6 Mr N K Sharma (up to 31.8.2009) 5 5 No Nil Nil Nil
7 Mr I V Sarma 7 7 Yes 2 Nil 1
8 Mr M G Raghuveer (w.e.f. 1.8.2009) 3 3 Yes 2 1 1
9 Mr H N Ramakrishna (w.e.f.. 1.9.2009) 2 2 Yes Nil Nil Nil
29
Sl.
No.
Directors
Meetngs
held during
respectve
tenure of
Director
No. of
Board
Meetngs
atended
Atendance
at the last
AGM held
on 25 Sep
2009
No. of other
directorships
held
* Number of Commitee
membership across all
companies
10 Mr Anil Kumar (w.e.f.. 3.2.2010) Nil Nil No Nil Nil 1
Part-tme Govt. (Non-executve) Directors
11 Mr Gyanesh Kumar (up to 26.1.2010) 6 4 No 3 1 3
12 Mr Satyajeet Rajan (w.e.f. 27.1.2010) 1 1 No Nil Nil 1
13 Lt Gen P Mohapatra 7 1 No 2 Nil Nil
Non-executve Independent Directors
14 Dr V Bakthavatsalam (up to 22.5.2009) 2 2 No 4 1 -
15 Prof N Balakrishnan (up to 22.5.2009) 2 Nil No 3 1 -
16 Dr Ashok Jhunjhunwala (up to 22.5.2009) 2 Nil No 12 1 6
17 Prof Goverdhan Mehta (up to 22.5.2009) 2 1 No 2 Nil 3
18 Mr K G Ramachandran (up to 22.5.2009) 2 1 No 1 1 1
19 Prof S Sadagopan (up to 22.5.2009) 2 2 No 3 Nil 2
20 Mr Bhupindar Singh (up to 22.5.2009) 2 2 No 4 1 2
21 Lt Gen (Retd) G Sridharan (w.e.f. 18.5.2009) 5 5 Yes Nil 2 -
22 Mr Anil Razdan (w.e.f. 23.11.2009) 1 1 No Nil Nil 1
23 Prof V K Bhalla (w.e.f. 23.11.2009) 1 1 No 3 1 4
24 Mr M S Ramachandran (w.e.f. 23.11.2009) 1 1 No 6 Nil 1
Note: * As per Clause 49, chairmanship / membership of the Audit Commitee and the Shareholders Grievance Commitee are considered.
The numbers of directorship and commitee positons given above
are as notfed by the Directors and it is confrmed that no Director
has been a member of more than 10 commitees or acted as
Chairman of more than 5 commitees across all Companies in which
he / she is a Director.
Code of Conduct
Board of Directors of your Company has laid down a Code
of Conduct for all Board members and senior management
personnel of the Company as per Clause 49 and the Guidelines
on Corporate Governance for Central Public Sector Enterprises
issued by the Dept. of Public Enterprises (DPE Guidelines). The
Code of Conduct has been posted on the Companys website,
www.bel-india.com. All Board members and senior management
personnel have afrmed compliance with the Code of Conduct
during the year 2009-10. A declaraton to this efect signed by the
Chairman & Managing Director is atached to this report.
Audit Commitee
The compositon of the Audit Commitee is in line with Secton
292A of the Companies Act 1956, Clause 49 of Listng Agreements
with Stock Exchanges and the guidelines on Corporate Governance
issued by the Government of India. The Companys Audit Commitee
consisted of four Independent Directors, one Govt. Director and
one Wholetme Director. In additon, the Statutory Auditors of the
Company, the Director (Finance) and the General Manager (Internal
Audit) also atend the meetngs of the Audit Commitee, regularly.
The Company Secretary is the Secretary to the Audit Commitee.
Chairman of the Audit Commitee is an Independent Director.
Chairman of the Audit Commitee atended the Annual General
Meetng of the Company held on 25th September 2009. The terms
of reference of the Audit Commitee are as specifed in Secton 292A
of the Act, Clause 49 and the DPE Guidelines.
30
During the year ended 31.3.2010, the Audit Commitee met six
tmes on 24.4.2009, 24.6.2009, 24.7.2009, 11.8.2009, 30.10.2009
and 29.1.2010.
The atendance of the Chairman and members of the Audit
Commitee in these meetngs were as follows:
Name
Meetngs held
during respectve
tenure of Director
No. of meetngs
atended
Lt Gen (Retd) G Sridharan
(w.e.f. 18.5.2009)
5 5
Mr Gyanesh Kumar
(up to 26.1.2010)
5 4
Mr Satyajeet Rajan
(w.e.f. 27.1.2010)
1 1
Mr K G Ramachandran
(up to 22.5.2009)
1 1
Prof S Sadagopan
(up to 22.5.2009)
1 1
Mr Bhupindar Singh
(up to 22.5.2009)
1 1
Mr H S Bhadoria 6 6
Name
Meetngs held
during respectve
tenure of Director
No. of meetngs
atended
Mr Anil Razdan
(w.e.f. 27.11.2009)
Nil Nil
Prof V K Bhalla
(w.e.f. 27.11.2009)
Nil Nil
Mr M S Ramachandran
(w.e.f. 27.11.2009)
Nil Nil
Remuneraton Commitee / Remuneraton Policy
Being a Central Govt. Public Sector Enterprise, the appointment,
tenure and remuneraton of Directors are decided by the Govt. of
India, and hence the Company has not consttuted any remuneraton
commitee. The Govt. leter appointng the Chairman & Managing
Director and other functonal directors indicate the detailed
terms and conditons of their appointment, including the period
of appointment, basic pay, scale of pay, dearness allowance, city
compensatory allowance, enttlement to accommodaton, etc., and
it also indicates that in respect of other terms and conditons not
covered in the leter, the relevant rules of the Company shall apply.
Details of remuneraton of Wholetme Directors during the year 2009-10 are given below:
(Remuneraton in Rs.)
Name of Director Salary * Benefts **
Company
contributon to
PF & Incremental
Gratuity***
Incentve
Leased
Accommodaton
Total
Mr V V R Sastry (up to 30.4.2009) 2,453,315 167,242 118,574 268,229 253,092 3,260,452
Mr A K Dat 2,768,821 48,477 486,634 223,644 989,258 4,516,834
Mr P R K Hara Gopal (up to 31.7.2009) 2,219,461 197,199 435,615 226,207 368,062 3,446,544
Mr M L Shanmukh 2,624,314 39,542 # 1,348,003 226,207 818,052 5,056,118
Mr H S Bhadoria 2,770,011 41,028 561,454 224,399 806,256 4,403,148
Mr N K Sharma (up to 31.8.2009) 2,460,301 87,657 150,317 178,386 418,062 3,294,723
Mr I V Sarma 2,193,840 41,152 414,197 185,488 648,368 3,483,045
Mr M G Raghuveer (w.e.f. 1.8.2009) 1,189,477 177,740 748,732 162,735 0 2,278,684
Mr H N Ramakrishna (w.e.f. 1.9.2009) 1,109,834 27,305 570,227 164,683 0 1,872,049
Mr Anil Kumar (w.e.f. 3.2.2010) 324,110 5,507 205,994 197,905 0 733,516
* Includes terminal benefts.
** Medical and other perquisites valued as per IT Rules.
*** Includes Leave Encashment at the tme of retrement.
# Includes past service cost pertaining to previous employment.
31
Part-tme Govt. Directors (Non-executve Directors) are not
paid any remuneraton. They are also not paid sitng fees for
atending Board / Commitee meetngs. Non-executve Independent
Directors are paid sitng fees of Rs. 20,000 / - per meetng of the
Board / Commitee of the Board atended. However, if the same
Non-ofcial Part-tme Director atends more than one meetng (of
Board / Commitee) on the same day, the sitng fees payable for
each of such additonal meetng is Rs. 10,000 / -. Details of sitng
fees paid to the Independent Directors during the year 2009-10 are
given below:
(Sitng fees in Rs.)
Name
Sitng Fees
Total
Board
Meetngs
Commitee
Meetngs
Dr V Bakthavatsalam
(up to 22.5.2009)
40,000 0 40,000
Prof N Balakrishnan
(up to 22.5.2009)
0 0 0
Dr Ashok Jhunjhunwala
(up to 22.5.2009)
0 0 0
Prof Goverdhan Mehta
(up to 22.5.2009)
20,000 0 20,000
Mr K G Ramachandran
(up to 22.5.2009)
20,000 10,000 30,000
Prof S Sadagopan
(up to 22.5.2009)
40,000 10,000 50,000
Mr Bhupindar Singh
(up to 22.5.2009)
40,000 10,000 50,000
Lt Gen (Retd) G Sridharan
(w.e.f. 18.5.2009)
100,000 140,000 240,000
Mr Anil Razdan
(w.e.f. 27.11.2009)
20,000 0 20,000
Prof V K Bhalla
(w.e.f. 27.11.2009)
20,000 0 20,000
Mr M S Ramachandran
(w.e.f. 27.11.2009)
20,000 0 20,000
The Company does not pay any commission to its Directors. The
Company has not issued any stock optons to its Directors. None
of the Non-executve Directors had any pecuniary relatonship or
transactons with the Company during the year.
The Chairman & Managing Director and other Functonal Directors
are appointed by the Govt. initally for a period of 5 years from
the date of appointment or up to the date of superannuaton of
the individual or promoton to next grade, or untl further orders
of the Govt., whichever is the earliest. Depending on the age
and performance and on meetng other stpulated conditons the
inital period is extendable for further period of 5 years or up to the
date of superannuaton or promoton to next grade, whichever is
earlier. The Part-tme Govt. Directors are ex-ofcio appointees and
their term is co-terminus with the term of respectve positon held
by them in Govt. at the tme of appointment on the Companys
Board. The non-executve independent Directors are appointed for
a period of 3 years.
Directors Shareholding
Mr Ashwani Kumar Dat and Mr Satyajeet Rajan hold 100 shares each
in the Company, on behalf of the Govt. of India. No other Directors
of the Company hold any BEL shares or convertble instruments of
the Company as on 31.3.2010.
Shareholders / Investors Grievance Commitee
Your Company has consttuted a Shareholders / Investors
Grievance Commitee for reviewing and resolving grievances of
shareholders / investors. The Shareholders / Investors Grievance
Commitee consist of following members of the Board:
1. Lt Gen (Retd) G Sridharan : Chairman
2. Mr M L Shanmukh : Member
3. Mr Anil Kumar : Member
Transfer requests and complaints from the shareholders are
atended to promptly as and when they are received. 5 grievances
from shareholders, mainly relatng to dividend payment, were
received and resolved during the year. No grievance was pending
as on 31.3.2010. There were no pending share transfers at the
close of the fnancial year.
Other Board Subcommitees
Your Directors have consttuted the following Subcommitees of
the Board:
1. Procurement Commitee consistng of the Chairman
& Managing Director, Govt. Director representng the
Administratve Ministry, Director (Finance), concerned
operatonal Director [ie, Director(BC) / Director(OU)] and
one Independent Director to consider and approve:
(i) purchase of capital items, plant, machinery and
equipment and material for capital works valuing more
than Rs. 1,000 lakhs per purchase order and approve
the terms of purchase, and
(ii) purchase of direct or indirect materials and sub-contracts
on outside partes with or without the Companys
materials to meet the needs of the planned producton
and sales and approve the terms of purchase valuing
more than Rs. 3,000 lakhs per purchase / subcontract.
32
2. R&D Commitee consistng of the Chairman & Managing
Director, Govt. Director representng the Administratve
Ministry, Director (R&D), Director (Finance) and one
Independent Director to consider and approve research,
development and engineering proposals with expenditure
exceeding Rs. 500 lakhs and up to Rs. 1,500 lakhs in each case.
3. Investment Commitee consistng of the Chairman &
Managing Director, the Director (Other Units) and the
Director (Finance) to approve investment of short-term
surplus funds.
4. Appointments Commitee consistng of the Chairman &
Managing Director and Wholetme Directors of relevant
functonal areas and one Part-tme Director for flling up
vacancies in the posts of General Managers / Executve
Directors.
Compliance Ofcer
Mr C R Prakash, Company Secretary, is the Compliance Ofcer.
His contact details are:
Mr C R Prakash, Company Secretary,
Bharat Electronics Ltd, Regd. & Corp. Ofce
Outer Ring Road, Nagavara, Bangalore - 560045
T. 080 25039300; F. 080 25039266; E. secretary@bel.co.in
General Body Meetngs
Details of last three Annual General Meetngs are as follows:
Year Locaton Date & Time
2006-07 The Grand Ball Room, Hotel Grand
Ashok, Kumara Park, High Grounds
Bangalore 560 001
20th September
2007 at 2.30 PM
2007-08 The Kalinga Hall, Hotel Grand
Ashok, Kumara Park, High Grounds
Bangalore 560 001
29th September
2008 at 2.30 PM
2008-09 Magadh Hall, The Lalit Ashok
Hotel, Kumara Park, High Grounds
Bangalore 560 001
25th September
2009 at 2.30 PM
All the resolutons, including special resolutons, set out in the
respectve notces of last three Annual General Meetngs were
passed by the shareholders. No resolutons were put through postal
ballot last year.
Disclosures
(a) Related Party Transactons are disclosed in Note No. 22 of
Notes to the Accounts (Schedule 21 to the Proft & Loss
Account of the Company for the year-ended 31.3.2010). The
Company does not have any materially signifcant related
party transactons, which may have potental confict with
its interest at large.
(b) There were no cases of non-compliance by the Company and
no penaltes / strictures were imposed on the Company by the
Stock Exchanges or SEBI or any other Statutory Authority on
any mater related to capital markets, during the last three
years.
(c) No items of expenditure, other than those directly related to
its business or incidental thereto, those spent towards the
welfare of its employees / ex-employees, towards fulflling
its Corporate Social Responsibility, were debited in books of
accounts.
(d) Expenses incurred for the Board of Directors and Top
Management are in the nature of salaries, allowances,
perquisites, benefts and sitng fees as permissible under
the rules of the Company. No other expenses, which are
personal in nature, were incurred for the Board of Directors
and Top Management.
(e) Administratve and ofce expenses as a percentage of total
expenses and reasons for increase, if any:
Administratve and ofce expenses were 3.02 % of the total
expenses for the year 2009-10 as against 3.85 % in the previous
year. No signifcant increase during the year.
Training of Directors
Directors were sponsored for training programme on Corporate
Governance conducted by the Insttute of Public Enterprises,
Hyderabad in the previous year.
Presidental Directves and Guidelines
Your Company has been following the Presidental Directves and
guidelines issued by the Govt. of India from tme to tme regarding
reservaton for SCs, STs and OBCs in leter and spirit. Liaison Ofcers
are appointed at various Units / Ofces all over the Country to
ensure implementaton of the Govt. Directves. Ofcials dealing
with the subject were provided necessary training to enable them
to update their knowledge on the subject and perform their job
efectvely. BEL has been implementng the Government Directves
on reservaton and the representaton of SC / ST / OBCs in BEL as on
31.3.2010 are as under:
Group
A
Group
B
Group
C
Group
D
Scheduled Caste 763 78 1,295 117
Scheduled Tribe 222 06 129 30
OBC 712 67 999 60
Your Company has been implementng the Govt. Directves on
reservaton for Persons with Disabilites and Ex-Servicemen and
33
their representaton as on 31.3.2010 are as under:
Group
A
Group
B
Group
C
Group
D
Physically Handicapped 72 09 168 18
Ex-Servicemen 83 48 328 86
During the year, a Presidental Directve was issued vide Govt. of
India, Ministry of Defence, Department of Defence Producton
No.17(1) / 2009-D(BEL) dt. 27th April, 2009 on revision of pay scales,
ftment formula, allowances and perquisites of board level and
below board level executves of the Company and the same has
been implemented.
Means of Communicaton
The quarterly and annual fnancial results of the Company are sent
to the Stock Exchanges by facsimile / e-mail and leter by courier
immediately afer the Board has taken them on record. The quarterly
unaudited fnancial results are published in one of the newspapers,
ie, Economic Times / Mint Express / Business Standard / Financial
Express / Business Line / Business Bhaskar (in English / Hindi) and
Samyuktha Karnataka / Times of India, Kannada / Prajavani / Kannada
Prabha (in Kannada).
The quarterly unaudited results are simultaneously posted on
the Companys website, viz., www.bel-india.com. The Company
has been fling all Corporate announcements, quarterly results,
shareholding patern, other informaton submited to the
Stock Exchanges on the NSE / BSE managed common platorm,
viz., www.corpfling.co.in. Investors may please log on to
www.corpfling.co.in to view the informaton fled by the Company
on this common platorm. Press releases are also being sent to
the Stock Exchanges and posted on your Companys website.
No presentatons have been made to insttutonal investors or to
the analysts.
Code for Preventon of Insider Trading
In accordance with the SEBI (Prohibiton of Insider Trading)
Regulatons 1992, the Company has put in place a Code of Conduct
and Disclosure Procedure (the Code) to prevent insider trading
in the Companys securites and for transparent / streamlined
disclosure / disseminaton of informaton to the investors / public.
The Code is applicable to all Directors, ofcers (top three ters in
all the Units / Ofces of the Company) and certain other specifed
employees at the Corporate Ofce.
Secretarial Audit
The Company obtains a Secretarial Audit Report from a Practsing
Company Secretary every quarter to reconcile the total admited
capital with the Natonal Securites Depository Ltd, (NSDL) and
Central Depository Services (India) Ltd, (CDSL) and the total issued
and listed capital. The Secretarial Audit Report confrms that the
total issued / paid up capital is in agreement with the total number
of shares in physical form and the total number of dematerialised
shares held with NSDL and CDSL. The Secretarial Audit Report is
forwarded to all the Stock Exchanges where BEL shares are listed.
The Company also obtains a Certfcate of Compliance from a
Practsing Company Secretary at half-yearly intervals certfying that
transfer requests complete in all respects have been processed and
share certfcates with transfer endorsements have been issued
by the Company within one month from the date of lodgement
thereof. This Certfcate of Compliance is forwarded to all the Stock
Exchanges where BEL shares are listed.
MCA-21 Compliance
The e-governance initatve of the Ministry of Corporate Afairs in
the administraton of the Companies Act 1956 (MCA-21) provides
the public, corporate enttes and others an easy and secure online
access to the corporate informaton including the fling of documents
and public access to the informaton required to be in public domain
under the statute, at any tme and from anywhere. The Company
has complied with all mandatory e-fling requirements under
MCA-21, during 2009-10.
Listng on Stock Exchanges
BELs shares are listed on the following three Stock Exchanges:
1. Bangalore Stock Exchange Ltd
Stock Exchange Towers
No. 51, 1st Cross, J C Road
Bangalore - 560 027
2. Bombay Stock Exchange Ltd
25th Floor, Phiroze Jeejeebhoy Towers
Dalal Street,
Mumbai - 400 001
3. Natonal Stock Exchange of India Ltd
Exchange Plaza, Plot No. C / 1
G Block, Bandra-Kurla Complex
Bandra (E), Mumbai - 400 051
The Company has paid listng fees for the Financial Year 2009-10 and
2010-11 to all the three Stock Exchanges.
The Stock Code assigned to the Companys equity shares by the
respectve Stock Exchanges and the ISIN number assigned by the
Depositories for demat trade of the Companys equity shares are
given below:
Stock Exchange Stock Code
Bangalore Stock Exchange Ltd BEL
Bombay Stock Exchange Ltd 500049
Natonal Stock Exchange of India Ltd BEL
Demat Share ISIN INE263A01016
34
Custody Fees to Depositories
The Company has paid annual custody fees for the Financial Year
2009-10 and 2010-11 to both the Depositories, viz., NSDL and
CDSL.
Market Price Data
The details of high / low market prices of the shares of the Company
at the Bombay Stock Exchange Ltd (BSE) and the Natonal Stock
Exchange of India Ltd (NSE) are as under:
Month
Quotaton on BSE -
Rupees Per Share
Quotaton on NSE -
Rupees Per Share
High Low High Low
April 2009 1,000.00 830.00 998.00 826.00
May 2009 1,385.00 889.00 1,395.00 940.00
June 2009 1,469.00 1,270.00 1,468.00 1,254.60
Month
Quotaton on BSE -
Rupees Per Share
Quotaton on NSE -
Rupees Per Share
High Low High Low
July 2009 1,571.15 1,285.00 1,542.00 1,283.00
August 2009 1,548.00 1,385.00 1,509.00 1,382.00
September 2009 1,547.85 1,364.00 1,547.00 1,352.50
October 2009 1,655.00 1,390.05 1,655.95 1,383.00
November 2009 1,864.85 1,446.00 1,814.95 1,435.00
December 2009 1,958.00 1,790.00 1,961.00 1,791.00
January 2010 2,170.00 1,880.05 2,166.00 1,879.30
February 2010 2,100.00 1,900.00 2,095.05 1,925.00
March 2010 2,252.00 1,922.00 2,251.90 1,996.85
A comparison of closing quotaton of the Companys share price on NSE with the closing positon of NSE NIFTY during the year 2009-10
(positon as on frst trading day of every month) is presented in the following graph:1
Both NSE NIFTY index and your Companys share price on NSE have been indexed to 100 as on 1 April 2009 to prepare the above chart.
35
Liquidity
The Companys shares are very liquid and are actvely traded on the
Indian Stock Exchanges. Relevant data of turnover for the fnancial
year 2009-10 is given below:
BSE NSE BSE+NSE
No. of shares traded 4,135,576 17,837,391 21,972,967
Value (Rs in Lakhs) 64,300 285,060 349,360
Share Transfer
Alpha Systems Pvt. Ltd., Bangalore, a SEBI registered Category I
Registrar and Share Transfer Agent is the Companys Registrar and
Share Transfer Agent. Address of Alpha Systems Pvt. Ltd., is given
below, to forward all share transfer / transmission / split /
consolidaton / issue of duplicate certfcates / change of address
requests as well as all dematerialisaton / rematerialisaton
requests and related maters as well as all dividend related queries,
complaints:
Alpha Systems Pvt. Ltd.,
# 30, Ramana Residency, 4th Cross
Sampige Road, Malleswaram
Bangalore 560 003
T. 080 23460815 to 818; F. 080 23460819; E. alfnt@vsnl.com
Share Transfer System
Shares sent for transfer are registered within the stpulated period.
Shares under objecton are returned within the stpulated period
seeking suitable rectfcaton. The Share Transfer Commitee meets
periodically to approve the transfers within the specifed period.
Shareholding Patern as on 31 March 2010
Sl.
No.
Category
No. of
Shareholders
No. of
Shares
%
Holding
1 Central Govt. (Govt. of India) 6 60,689,600 75.86
2 Mutual Funds / UTI 113 5,473,834 6.84
3 Financial Insttutons / Banks 5 15,100 0.02
4 Insurance Companies 12 5,907,149 7.38
5 Foreign Insttutonal Investors 92 4,262,749 5.33
6 Bodies Corporate 722 1,707,451 2.13
7 Individuals 19,456 1,804,252 2.26
8 Clearing Members 143 38,643 0.05
9 NRIs 575 93,340 0.12
10 Trusts 7 7,882 0.01
Total 21,131 80,000,000 100.00
Top 10 Shareholders as on 31 March 2010
Sl.
No.
Name
No. of
Shares
%
Holding
1 President of India (including 5 Govt. nominees) 60,689,600 75.86
2 Life Insurance Corporaton of India 2,119,931 2.65
3 LIC of India - Market Plus 1,421,822 1.78
4 LIC of India - Money Plus 799,601 1.00
5 LIC of India Market Plus - 1 729,525 0.91
6 Life Insurance Corporaton of India - Proft Plus 553,353 0.69
7 HDFC Trustee Company Ltd - HDFC Top 200 Fund 530,000 0.66
8 DSP Blackrock India T.I.G.E.R. Fund 476,890 0.60
9 Birla Sun Life Insurance Company Ltd., 437,513 0.55
10 Fidelity Northstar Fund 400,000 0.50
Distributon of Shareholding as on 31 March 2010
No. of Equity
Shares Held
No. of
Shareholders
%
No. of
Shares
%
Upto 500 20,269 95.92 1,027,939 1.28
501-1000 373 1.77 279,919 0.35
1001-2000 176 0.83 260,623 0.33
2001-3000 57 0.27 142,322 0.18
3001-4000 27 0.13 98,226 0.12
4001-5000 31 0.15 146,112 0.18
5001-10,000 48 0.23 375,986 0.47
10001 and above 150 0.71 77,668,873 97.09
Total 21,131 100.00 80,000,000 100.00
Dematerialisaton of Shares
99.98% of total equity capital disinvested by the Govt. (i.e. 24.14%
of the total paid up capital) is held by the investors in dematerialised
form with NSDL and CDSL.
Outstanding GDRs / ADRs / Warrants: Not Applicable
Transfer to IEPF Account
Under Secton 205A(5) of the Companies Act 1956 (the Act)
companies are required to transfer to the Investor Educaton and
Protecton Fund (the Fund) established by the Govt under Secton
205C of the Act the money transferred by the companies to the
Unpaid Dividend Account and which remain unclaimed / unpaid for
a period of 7 years. As per Secton 205C of the Act no claims shall lie
against the Fund or the Company in respect of individual amounts
thus transferred to the Fund and no payment shall be made in
respect of any such claims. During the year 2009-10 the Company
transferred to the Fund an amount of Rs. 195,711 / - from the unpaid
dividend account for the year 2001-2002. The unclaimed / unpaid
dividend for the year 2002-03 is due for transfer to the Fund in 2010.
Notces to this efect have been sent to the respectve shareholders
to enable them to claim and receive the amount. The Company has
36
posted on its website www.bel-india.com in a separate page ttled
Informaton for Investors the details of dividend payment since
2002-03 onwards and guidance informaton for claiming unpaid
dividend. Shareholders are requested to make use of the claim
form provided therein to claim unpaid / unclaimed dividend.
Credit Ratng
In order to comply with the Basel II requirements of Banks, the
Company has got its entre working capital facilites rated by
ICRA, besides contnuing the existng ratng for short-term debt
programme. ICRA has reafrmed the LAAA (pronounced as L triple
A) ratng to the Rs. 2 billion fund based limit and the A1+ (pronounced
as A one plus) ratng to the Rs. 10 billion non-fund based limit of the
Company. The ratngs indicate the highest credit quality in the long-
and short-term. The existng ratng of A1+ for the short-term debt
programme has also been reafrmed for Rs. 50 lakhs.
CEO / CFO Certfcaton
In terms of the requirements of Clause 49 and DPE Guidelines, the
CEO / CFO certfcate has been obtained and placed before the Audit
Commitee and the Board.
Compliance
The Company has complied with the Corporate Governance
norms / guidelines under Clause 49 and DPE Guidelines. The
Company has also been submitng to the Stock Exchanges and to
the Govt., quarterly compliance report on Corporate Governance.
As required under the Listng Agreement with the Stock Exchanges,
the Auditors Certfcate on compliance of conditons of Corporate
Governance by the Company is atached.
Non-mandatory Requirements
The Company has not adopted the non-mandatory requirements
as mentoned in Annexure-I D of Clause 49.
Additonal / General Informaton for Shareholders
Annual General Meetng
Date : 28th September 2010
Time : 2.30 PM
Venue : Kalinga Hall, The Lalit Ashok Hotel,
Kumara Park, High Grounds,
Bangalore - 560 001.
Financial Calendar 2010-11
Financial Year : 1 April 2010 to 31 March 2011
First quarter results : By end of July 2010
Second quarter results : By end of October 2010
Third quarter results : By end of January 2011
Fourth quarter results : By end of April 2011
Annual General Meetng : September 2011
Book Closure
15 September 2010 to 28 September 2010 (both days inclusive)
Dividend Payment Date
Dividend will be paid within 30 days of declaraton.
Plant Locatons
1. Jalahalli, Bangalore - 560013 (Karnataka)
Phone: (080) 28382626 Fax: (080) 28380266
2. Bharat Nagar Post, Ghaziabad - 201010 (Utar Pradesh)
Phone: (0120) 2777707 Fax: (0120) 2776730
3. Plot No. 405, Industrial Area, Phase III
Panchkula - 134113 (Haryana)
Phone: (0172) 2588252, 2588400
Fax: (0172) 2594548, 2591463
4. Balbhadrapur, Kotdwara - 246149, Dist.
Pauri Garhwal (Utarakhand)
Phone: (01382) 231171 to 231178
Fax: (01382) 231132, 231135
5. Plot No. L-1, M.I.D.C. Industrial Area
Navi Mumbai - 410208. (Maharashtra)
Phone: (022) 27412701 Fax: (022) 27412888, 27412887
6. N.D.A. Road, Pashan, Pune - 411021 (Maharashtra)
Phone: (020) 22903000 / 25881400 / 01 / 02
Fax: (020) 25880577, 25888789
7. Industrial Estate, Nacharam
Hyderabad - 500076, (Andhra Pradesh)
Phone: (040) 27150113 to 27150117 Fax: (040) 27171406
8. Post Box No. 26, Ravindranath Tagore Road
Machilipatnam - 521001 (Andhra Pradesh)
Phone: (08672) 223581 to 223583 Fax: (08672) 222640
9. Post Box No. 981, Nandambakkam
Chennai - 600089 (Tamil Nadu)
Phone: (044) 22326906 Fax: (044) 22326905
Registered Ofce / Address for Correspondence
Bharat Electronics Ltd.,
Registered Ofce, Outer Ring Road
Nagavara, Bangalore - 560 045
Phone: (080) 25039300; Fax: (080) 25039233;
e-mail:. secretary@bel.co.in;
Website: www.bel-india.com
37
DECLARATION
Pursuant to the relevant provisions under Clause 49 of the Listng Agreement with Stock Exchanges, and the Department of
Public Enterprises (DPE) Guidelines on Corporate Governance for Central Public Sector Enterprises as contained in the DPE
OM No. 18(8) / 2005-GM dated 22 June 2007, all Board Members and Senior Management Personnel of the Company have afrmed
compliance with the Code of Business Conduct & Ethics for Board Members & Senior Management of Bharat Electronics Ltd., for the
year ended 31 March 2010.
For Bharat Electronics Ltd
Place : Bangalore Ashwani Kumar Datt
Date : 25th June 2010 Chairman & Managing Director
R.G.N. Price & Co. 1051, IInd Floor
Chartered Accountants 20th Main, 5th Block
Rajajinagar,
Phone: 23113158/23300331
E-mail: priceblr@yahoo.co.uk
AUDITORS CERTIFICATE
To
The Members
Bharat Electronics Limited
Bangalore
We have examined the compliance of conditons of Corporate Governance by Bharat Electronics Limited, for the year ended on 31st
March, 2010, as stpulated in clause 49 of the Listng Agreement of the said Company with Stock Exchanges and Department of Public
Enterprises (DPE) Guidelines on Corporate Governance for Central Public Sector Enterprises.
The compliance of the conditons of Corporate Governance is the responsibility of the Management. Our examinaton was limited
to the procedures and implementaton thereof, adopted by the Company for ensuring compliance of the conditons of the Corporate
Governance. It is neither an audit nor an expression of opinion on the fnancial statements of the Company.
In our opinion, and to the best of our informaton and according to the explanatons given to us, we certfy that, the Company has
complied with the conditons of Corporate Governance as stpulated in the above mentoned Listng Agreement and DPE Guidelines.
However, we observed that there are only four Independent Directors on the Board against the requirement of nine Independent
Directors.
We state that no investor grievances are pending for a period exceeding one month against the Company as per the records maintained
by the Shareholders/Investors Relatons Commitee.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efciency or efectveness with
which the Management has conducted the afairs of the Company.
For R.G.N. Price & Co.
Chartered Accountants
H.S. Venkatesh
Partner
Place : Bangalore Membership No. 026666
Date : 25th June 2010 Firm Regn. No. 002785S
38
Auditors Report
The Members
Nagavara, Outer Ring Road
Bangalore - 560045
1. We have audited the atached Balance Sheet of Bharat
Electronics Limited as at 31st March 2010, the Proft
and Loss Account and also the cash fow statement for
the year ended on that date annexed thereto. These
fnancial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
2. We conducted our audit in accordance with auditng
standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain
reasonable assurance about whether the fnancial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supportng
the amounts and disclosures in the fnancial statements.
An audit also includes assessing the accountng principles
used and signifcant estmates made by the management,
as well as evaluatng the overall fnancial statement
presentaton. We believe that our audit provides a
reasonable basis for our opinion.
3
.
As required by the Companies (Auditors Report) Order,
2003 (as modifed on 25 Nov 2004) issued by the Central
Government in terms of sub-secton (4A) of secton 227 of
the Companies Act, 1956, we enclose in the Annexure a
statement on the maters specifed in paragraphs 4 and 5 of
the said Order.
4. Further to our comments in the Annexure referred to in
Paragraph 3 above, we report that:
a. We have obtained all the informaton and
explanatons which to the best of our knowledge
and belief were necessary for the purpose of our
audit.
b. In our opinion, proper books of account, as required
by law, have been kept by the Company in so far
as it appears, from our examinaton of those books.
The audit of the accounts of Bangalore, Hyderabad
and Chennai Units and Corporate Ofce were carried
out by us, whilst the audit of Ghaziabad, Panchkula,
Kotdwara, Pune, Navi Mumbai and Machilipatnam
units were audited by respectve branch auditors. The
reports of branch auditors have been considered by us
while preparing our report. In the case of New York
and Singapore ofces, not visited by us, in respect
of which the accounts are maintained at Corporate
Ofce, the returns / records received from the said
ofces have been verifed and found to be adequate
for the purpose of our audit. We further state that the
disclosure in Note No. 24 of Schedule 21 of Companys
share of Assets, Liabilites, Income and Expenses in the
joint ventures is based on audited fnancial statements
of GE BE Pvt. Ltd., and audited fnancial statements of
BEL Multtone Pvt. Ltd., as provided by the respectve
operators of joint ventures.
c. The Balance Sheet and the Proft and Loss Account
cash fow dealt with by this report, are in agreement
with the books of account of this Company;
d. In our opinion, the Balance Sheet, Proft and Loss
Account and Cash fow Statement dealt with by this
report comply with the accountng standards referred
to in Secton 211(3C) of the Companies Act, 1956, read
with Secton 211(3B) of the Companies Act, 1956 and
Item No. 19 on Notes on Accounts regarding segment
reportng.
e. As the Company is a Government Company, it is
exempt from the provisions of Secton 274 (1) (g) of
the Companies Act, 1956 regarding disqualifcaton of
directors.
f. In our opinion and to the best of our informaton
and according to the explanatons given to us, the
said accounts read together with the Signifcant
Accountng Policies and the Notes forming part
of accounts give the informaton required by the
Companies Act, 1956, in the manner so required
and give a true and fair view in conformity with the
accountng principles generally accepted in India:
i) In the case of the Balance Sheet, of the State
of afairs of the Company as at 31
st
March,
2010,
ii) In the case of the Proft and Loss Account, of
the proft of the Company, for the year ended
on that date.
iii) In the case of Cash Flow Statement, of the cash fow
for the year ended on that date.
For R.G.N Price & Co.
H. S. Venkatesh
Partner
Bangalore Firm Regn. No. 002785S
25th June 2010 Membership No. 026666
39
(i) (a) The Company has generally maintained proper records
showing full partculars including quanttatve details and
situaton of Fixed Assets.
(b) As explained to us, the Management has generally
carried out the physical verifcaton of a porton of the
Fixed Assets in accordance with their phased programme
of physical verifcaton, which is considered reasonable
having regard to the size of the Company and nature of
its business and discrepancies, if any, were properly dealt
with on such verifcaton during the year.
(c) During the year, the Company has not disposed of
substantal porton of the Fixed Assets.
(ii) (a) The raw material, stores and spare parts, tools, work
in progress and semi fnished goods inventory with the
Company have been physically verifed during the year
by the management. In our opinion, the frequency of
verifcaton is reasonable. In case of fnished goods,
stock verifcaton was done at year end.
(b) The procedures of physical verifcaton of raw
material inventories followed by the management are
generally reasonable and adequate in relaton to the
size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory.
The discrepancies notced on verifcaton between the
physical stocks and the book records were not material
and have been appropriately dealt in the books. In the
case of materials with sub-contractors confrmatons
from certain sub-contractors were not received and
in this regard please refer Item No. 10 (a) of Notes to
Accounts.
(iii) The Company has not granted / taken any loans to / from
partes covered in the register maintained under Secton
301 of the Companies Act, 1956 and hence, Clause No. iii of
Companies Audit Report Order, 2003, as amended in 2004,
is not applicable.
(iv) In our opinion and according to the informaton and
explanatons given to us, there are adequate internal control
systems commensurate with the size of the Company and
the nature of its business with regard to purchases of
inventory, Fixed Assets and with regard to the sale of goods
and services. During the course of our audit, we have not
observed any contnuing failure to correct major weaknesses
in internal control system.
(v) According to the informaton and explanatons given to us, we
are of the opinion that there are no transactons that need to
be entered in register maintained under Secton 301 of the
Companies Act, 1956.
(vi) Company has not accepted any deposit from public in the
current year and all deposits had matured and setled except
for Rs. 38.55 Lakhs, out of which Rs. 36.50 lakhs are being
retained as per Garnishee Order of Lok Ayukta, Bangalore
and the balance Rs. 2.05 lakhs though matured have not been
claimed by the depositors. In our opinion and according to
the informaton and explanatons given to us, the Company
has complied with the provisions of Secton 58AA and other
relevant provisions of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) The Company, pursuant to the rules made by the Central
Government for the maintenance of cost records under
secton 209(1)(d) of the Companies Act, 1956 has to
maintain cost records for electronic products and we are of
the opinion that prima facie the prescribed accounts and
records have been made and maintained. However, we have
not made a detailed scrutny of the same.
(ix) (a) The Company is generally regular in depositng with
appropriate authorites undisputed statutory dues
including Provident Fund, Investor Educaton and
Protecton Fund, Employees State Insurance, Income
Tax, Sales Tax (VAT), Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Cess and other material statutory
dues applicable to it.
(b) According to the informaton and explanatons given to
us, no undisputed amounts payable in respect of Income
Tax, Service Tax, Sales Tax (VAT), Customs Duty, Excise
Duty and Cess were in arrears, as at March 31, 2010 for
a period of more than six months from the date they
became payable.
(c) According to the informaton and explanatons given to
us, there are no dues of Income Tax, Service Tax, Sales
Tax (VAT), Customs Duty, Excise Duty and Cess which
Annexure referred to in Para 3 of our report of even date on the accounts of Bharat Electronics
Limited, for the year ended 31st March 2010.
40
have not been deposited on account of any dispute
except as follows:
Nature of
Statute
Nature of Dues
Amount
disputed
(Rs. in
thousands)
Forum where dispute is
pending
The Central
Excise Act,
1944
Excise Duty
Demand
6,490 Custom Excise and
Service Tax Appealate
Tribunal, New Delhi
572.6 CESTAT
418.8 Commissioner (Appeals)
192.53 Commissioner
U.P. Trade
Tax Act,
1948
Beneft of
Concessional Form
3D not allowed.
(Year 1979-80)
192 Case remanded to 1
st

Appelate Authority
Central Sales
Tax Act,
1956
Sales Tax dues
and beneft of
concessional Form
C (Year 1989-90)
772 Case remanded to Deputy
Commissioner (Appeal).
Central Sales
Tax Act,
1956
Sales Tax dues
and beneft of
concessional Form
D(Year 1989-90)
213 Case remanded to AC
(Appeal).
UP Trade Tax
Act, 1948
Beneft of
concessional
Form 3B and 3D
not allowed (Year
1991-1992)
112 Appeal fled with DC
(Appeals) for acceptance
of duplicate copy of 3d(1)
UP Trade Tax
Act, 1948
Non-receipt of
Concessional forms
for sale to Army
and NTPC (Year
2008)
305 Joint Commissioner
Corporate Circle,
Ghaziabad.
Income Tax
(TDS)
Applicability of
Secton 194(C) or
194(I) (Financial
year 2007-08 and
2008-09).
7,337 CIT (Appeals), Ghaziabad.
ESI Act,
1948
Interest and
damage towards
late deposit
352 Punjab and Haryana High
Court, Chandigarh
Sales Tax
Act, Bihar
Sales Tax 664.4 Commissioner of
Commercial Taxes
(Appeals, Chirkunda,
Bihar)
AP Sales Tax Sales Tax 108.3 DC (Appeals)
Secundarabad Division,
Hyderabad
Rajasthan
Sales Tax
Sales Tax 160 DC (Appeals), Udaipur
Nature of
Statute
Nature of Dues
Amount
disputed
(Rs. in
thousands)
Forum where dispute is
pending
Karnataka
Sales Tax
Sales Tax 12,757.5 JC (Appeals), Bangalore
Service Tax Service Tax 84.2 Commissioner (Appeals)
Service Tax Service Tax 379.7 High Court of Karnataka
Service Tax Service Tax 363.3 Commissioner (Appeals)
Service Tax Service Tax 1033.8 Commissioner
Trade Tax
Department,
Kotdwara
Trade Tax Dues and
Interest on dues
16,512 Tribunal Commercial Tax
and Joint Commissioner
(Appeals), Commercial
Tax, Dehradun
Tamil Nadu
Sales Tax
Sales Tax 160,749 Andhra Pradesh High
Court
Andhra
Pradesh VAT
Sales Tax 2,604 Sales Tax Appellate
tribunal
CST Act
1956
CST 48,208 Sales Tax Appellate
tribunal
Urban Land
Tax
Land Tax 4,144 Land Tax Authorites
Vacant Land
Tax
Land Tax 1,035 Land Tax Authorites
(x) The Company does not have accumulated losses as at the
end of the Financial year and has not incurred Cash losses
during the fnancial year and in the immediately preceding
fnancial year.
(xi) In our opinion and according to the informaton and
explanatons given to us, the Company has not defaulted in
repayment of dues to bank.
(xii) According to informaton furnished, the Company has not
granted loans and advances on the basis of security by way
of pledge of shares, debentures and other securites.
(xiii) The Company is not a chit fund or a nidhi / mutual beneft
fund / society. Therefore, the provisions of clause 4(xiii)
of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
(xiv) The Company is not dealing in or trading in shares,
securites, debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company.
41
(xv) The Company has not given any guarantee for loans taken
by others from banks or fnancial insttutons.
(xvi) The Company has not availed any term loan, and hence,
clause (xvi) of CARO 2003 is not applicable.
(xvii) According to the informaton and explanaton given to us
and on an overall examinaton of the Balance Sheet of the
Company, we report that no funds raised on short term
basis have been used for long term investment.
(xviii) The Company has not made preferental allotment of shares
to partes covered in the register maintained under Secton
301 of the Companies Act, 1956.
(xix) The Company has not issued any debentures.
(xx) The Company has not raised money by public issues and
hence Clause 4 (xx) of CARO 2003is not applicable to the
Company.
(xxi) During the course of our examinaton of the books and
records of the Company, carried out in accordance with the
generally accepted auditng practces in India, and according
to the informaton and explanatons given to us, we have
neither come across any instance of fraud on or by the
Company notced or reported during the year nor have we
been informed of any such case by the management, that
causes the fnancial statements to be materially misstated.
For R.G.N Price & Co.
H. S. Venkatesh
Partner
Bangalore Membership No. 026666
25th June 2010 Firm Regn. No.002785S
42
43
44
Signifcant Accountng Policies
1. BASIS OF ACCOUNTING
The fnancial statements are prepared and presented under
the historical cost conventon, in accordance with Generally
Accepted Accountng Principles in India (GAAP), on the
accrual basis of accountng, except as stated herein. GAAP
comprises the mandatory Accountng Standards (AS) covered
by the Companies (Accountng Standards) Rules, 2006 issued
by the Central Government, to the extent applicable, and the
provisions of the Companies Act, 1956 and these have been
consistently applied.
2. USE OF ESTIMATES
The preparaton of the fnancial statements in conformity
with GAAP, requires that the management make estmates
and assumptons that afect the reported amounts of assets
and liabilites, disclosure of contngent liability as at the date
of fnancial statements and the reported amounts of revenue
and expenses during the reportng period. Although such
estmates are made on a reasonable and prudent basis taking
into account all available informaton, actual results could difer
from these estmates and such diferences are recognised in
the period in which the results are ascertained.
3. REVENUE RECOGNITION
(i) Revenue from sale of goods is recognised as under:
a. In the case of FOR contracts, when the goods are
handed over to the carrier for transmission to
the buyer afer prior inspecton and acceptance,
if stpulated, and in the case of FOR destnaton
contracts, if there is a reasonable expectaton
of the goods reaching destnaton within the
accountng period. Revenue is recognised even
if goods are retained with the Company at the
request of the customer.
b. In the case of ex-works contracts, when the
specifed goods are unconditonally appropriated
to the contract afer prior inspecton and
acceptance, if required.
c. In the case of contracts for supply of complex
equipments/systems where the normal cycle tme
of completon/delivery period is more than 24
months and the value of the equipment/system is
more than Rs. 100 Crores, revenue is recognised on
the percentage completon method. Percentage
completon is based on the rato of actual costs
incurred on the contract upto the reportng date
to the estmated total cost of the contract.
Since the outcome of such a contract can be
estmated reliably only on achieving certain
progress, revenue is recognised upto 25%
progress only to the extent of costs. Afer this
stage, revenue is recognised on proportonate
basis and a contngency provision equal to 20% of
the surplus of revenue over costs is made while
antcipated losses are recognised in full.
d. If the sale price is pending fnalisaton, revenue is
recognised on the basis of price expected to be
realised. Where break up prices of sub units sold
are not provided for, the same are estmated.
e. Price revisions and claims for price escalatons on
contracts are accounted on admitance.
f. Where installaton and commissioning is stpulated
and price for the same agreed separately, revenue
relatng to installaton and commissioning is
recognised on conclusion of installaton and
commissioning actvity. In case of a composite
contract, where separate fee for installaton and
commissioning is not stpulated and the supply is
efected and installaton and commissioning work
is pending, the estmated costs to be incurred on
installaton and commissioning actvity is provided
for and revenue is recognised as per the contract.
g. Sales exclude Sales Tax / Value Added Tax (VAT)
and include Excise Duty.
(ii) Other income is recognised on accrual.
4. FIXED ASSETS AND CAPITAL WORK-IN-PROGRESS:
(i) Tangible Assets:
Tangible Fixed Assets are stated at cost less accumulated
depreciaton / amortsaton including where the same
is acquired in full or in part with Government grant.
Cost for this purpose includes all atributable costs
for bringing the asset to its locaton and conditon,
cost of computer sofware which is an integral part
of the related hardware, and also includes borrowing
costs during the acquisiton / constructon phase, if
it is a qualifying asset requiring substantal period of
tme to get ready for intended use. The cost of Fixed
Assets acquired from a place outside India includes
the exchange diferences if any, arising in respect of
liabilites in foreign currency incurred for acquisiton of
the same upto 31.03.2007.
45
Capital work-in-progress comprises supply-cum-
erecton contracts, the value of capital supplies received
at site and accepted, capital goods in transit and under
inspecton and outstanding advances paid to acquire
Fixed Assets and the cost of Fixed Assets that are not
yet ready for their intended use as at the balance sheet
date.
(ii) Intangible Assets:
The cost of sofware (which is not an integral part of the
related hardware) acquired for internal use and resultng
in signifcant future economic benefts, is recognised as
an intangible asset in the books of accounts when the
same is ready for use.
(iii) Impairment of Assets:
The Company assesses the impairment of assets with
reference to each Cash Generatng Unit (CGU) at
each Balance Sheet date if events or changes in
circumstances, based on internal and external
factors, indicate that the carrying value may not be
recoverable in full. The loss on account of impairment,
which is the diference between the carrying amount
and recoverable amount, is accounted accordingly.
Recoverable amount of a CGU is its Net Selling Price or
Value in Use whichever is higher. The Value in Use is
arrived at on the basis of estmated future cash fows
discounted at Companys pre-tax borrowing rates.
Reversal of impairment provision is made when there
is an increase in the estmated service potental of an
asset, either from use or sale, on reassessment afer
the date when impairment loss for that asset was last
recognised.
5. DEPRECIATION / AMORTISATION
Tangible depreciable Fixed Assets are generally depreciated
on straight-line method at the rates (or higher rates as
disclosed) and in the manner prescribed in Schedule XIV to
the Companies Act, 1956. Special instruments are amortsed
over related producton. Intangible Assets are amortsed
over a period of three years on straight-line method. Prorata
depreciaton / amortsaton is charged from / upto the date
on which the assets are ready to be put to use / are deleted
or discarded. Leasehold land is amortsed over the period
of lease.
6. BORROWING COSTS
Borrowing costs that are specifcally atributable to qualifying
assets as defned in Accountng Standard AS 16 are added
to the cost of such assets untl use or sale and the balance
expensed in the year in which the same is incurred.
7. RESEARCH & DEVELOPMENT EXPENDITURE
Research and Development expenditure other than on specifc
development-cum-sales contracts is charged of as expenditure
when incurred. R & D expenditure on development cum sale
contracts is treated at par with other sales contracts. Such
expenditure on Fixed Assets is capitalised.
8. GOVERNMENT GRANTS
All Grants from Government are initally recognised as
Deferred Income.
The amount lying in Deferred Income on account of
acquisiton of Fixed Assets is transferred to the credit of
Proft and Loss Account in proporton to the depreciaton
charged on the respectve assets to the extent atributable
to Government Grants utlised for the acquisiton.
The amount lying in Deferred Income on account of Revenue
Expenses is transferred to the credit of Proft and Loss
Account to the extent of expenditure incurred in the rato of
the funding to the total sanctoned cost, limited to the grant
received.
Grants in the nature of promoters contributon are credited
to Capital Reserve.
9. INVESTMENTS
(i) Investments are categorised as Trade or Non-Trade.
Trade investments are the investments made to
enhance the Companys business interests.
(ii) Investments are further classifed either as long-term
or current based on the managements intenton at the
tme of purchase. Long term investments are valued
at acquisiton cost. Any diminuton in the value other
than of temporary nature is provided for. Current
investments are carried at lower of cost or fair value.
10. INVENTORY VALUATION
All inventories of the Company other than disposable scrap
are valued at lower of cost or net realisable value. Disposable
scrap is valued at estmated net realisable value. Cost of
materials is ascertained by using the weighted average cost
formula. Cost of work in progress and fnished goods include
materials, direct labour and appropriate overheads. Finished
goods at factories include applicable excise duty. Adequate
provision is made for inventory which are more than fve years
old which may not be required for further use.
46
11. SUNDRY DEBTORS
(i) Full provision is made for all debts considered
doubtul of recovery having regard to the following
consideratons:
a. Time barred debts from government / government
departments / government companies are
generally not treated as doubtul debts.
b. Where debts are disputed in legal proceedings,
provision is made if any decision is given against
the Company even if the same is taken up on
appeal to higher authorites / courts.
(ii) Provision for bad and doubtul debts is generally made
for debts outstanding for more than three years,
exceptng those which are contractually not due as per
the terms of the contract or those which are considered
realisable based on a case to case review.
12. INCOME TAX
Tax expense comprising current tax afer considering deferred
tax and fringe beneft tax as determined under the prevailing
tax laws are recognised in the Proft and Loss Account for the
period.
Certain items of income and expenditure are not considered
in tax returns and fnancial statements in the same period.
The net tax efect calculated at the current enacted tax rates
of this tming diference is reported as deferred income
tax asset / liability. The efect on deferred tax assets and
liabilites due to change in such assets / liabilites as at the
end of the accountng period as compared to the beginning
of the period and due to a change in tax rates are recognised
in the Proft and Loss Account for the period.
13. PROVISION FOR WARRANTIES
Provision for expenditure on account of performance
guarantee & replacement / repair of goods sold is made on the
basis of trend based estmates.
14. FOREIGN CURRENCY TRANSACTIONS
Foreign exchange transactons including that of integral
foreign branches are recorded using the exchange rates
prevailing on the dates of the respectve transactons.
Monetary assets and liabilites denominated in foreign
currencies as at the balance sheet date are translated at
period-end rates. The resultant exchange diference arising
from setlement of transactons during the period and
translatons at the period end, except those upto 31.03.2007
relatng to acquisiton of Fixed Assets from a place outside
India, is recognised in the Proft and Loss Account. Exchange
diferences relatng to the acquisiton of Fixed Assets
were adjusted in the carrying cost of the Fixed Assets tll
31.03.2007.
Premium or discount arising at the incepton of the forward
exchange contract is amortsed as income / expenditure
over the life of the contract.
The exchange rate diferences on the amount of forward
exchange contracts between the rate on the last reportng
date / the rate at the tme of entering into a contract
during the period and the rate on the setlement date are
recognised in the statement of Proft and Loss in the
reportng period in which the exchange rates change. The
exchange diferences arising from the rates prevailing at the
tme of entering into the contract and the reportng date are
also accrued and adjusted in the Proft and Loss Account.
Any Proft or Loss arising on cancellaton or renewal of a
forward exchange contract is recognised as income or as
expense in the period when the cancellaton or renewal
occurs.
15. EMPLOYEE BENEFITS
(i) All employee benefts payable wholly within twelve
months of rendering the related services are classifed
as short term employee benefts and they mainly
include (a) Wages & Salaries; (b) Short-term
compensated absences; (c) Proft-sharing, incentves
and bonuses and (d) Non-monetary benefts such as
medical care, subsidised transport, canteen facilites
etc., which are valued on undiscounted basis and
recognised during the period in which the related
services are rendered.
Incremental liability for payment of long term
compensated absences such as Annual and Sick leave as
well as Leave Travel Concession (LTC) is determined as
the diference between present value of the obligaton
determined annually on actuarial basis using projected
unit credit method and the carrying value of the
provision contained in the balance sheet and provided
for.
(ii) Defned contributon to Employee Pension Scheme is
made on monthly accrual basis at the applicable rates.
(iii) Incremental liability for payment of Gratuity and
Employee Provident Fund to employees is determined
as the diference between present value of the
47
obligaton determined annually on actuarial basis using
Projected Unit Credit Method and the Fair Value of
Plan Assets funded in an approved trust set up for the
purpose for which monthly contributons are made in
the case of provident fund and lump sum contributons
in the case of gratuity.
(iv) Incremental liability under BEL Retred Employees
Contributory Health Scheme (BERECHS) is determined
annually on actuarial basis using Projected Unit Credit
Method and provided for.
(v) Actuarial liability for the year is determined with
reference to employees at the end of January of each
year.
(vi) Payments of voluntary retrement benefts are charged
of to revenue on incurrence.
16. PRIOR PERIOD ADJUSTMENTS AND EXTRAORDINARY
ITEMS
Prior period adjustments and extraordinary items having
material impact on the fnancial afairs of the Company are
disclosed.
17. TECHNICAL KNOW-HOW
Revenue expenditure incurred on technical know-how
is charged of to Proft and Loss Account on incurrence.
18. PROVISIONS AND CONTINGENT LIABILITIES
Provisions for losses and contngencies arising as a result
of a past event where the management considers it
probable that a liability may be incurred, are made on
the basis of the best reliable estmate of the expenditure
required to setle the present obligaton on the Balance
Sheet date, and are not discounted to its present value.
Provisions are reviewed at each Balance Sheet date and
adjusted to refect the current best estmate. Signifcant
variatons thereof are disclosed.
Contngent liabilites to the extent the management is
aware, are disclosed by way of notes to the accounts.
19. CASH FLOW STATEMENT
Cash fow statement has been prepared in accordance with
the indirect method prescribed in Accountng Standard - 3 on
Cash Flow Statements.
For M/s RGN Price & Co. Ashwani Kumar Dat
Chartered Accountants Chairman & Managing Director
H S Venkatesh
Partner M G Raghuveer
Membership No. 026666 Director (Finance)
Firm Regn No. 002785S
Place : Bangalore C R Prakash
Date : 25th June 2010 Company Secretary
48
Balance Sheet as at 31st March 2010
(Rs. in Lakhs)
Schedule
As at
31.3.2010
As at
31.3.2009
SOURCES OF FUNDS
Shareholders Funds
Share Capital 1 8,000.00 8,000.00
Reserves & Surplus 2 424,525.59 370,368.15
432,525.59 378,368.15
Government Grants 3 2,041.96 2,344.31
Loan Funds
Secured Loans 4 72.61 121.08
Unsecured Loans - -
72.61 121.08
434,640.16 380,833.54
APPLICATION OF FUNDS
Fixed Assets
Gross Block 170,217.05 157,990.36
Less: Depreciaton 121,220.77 111,244.63
Net Block 5 48,996.28 46,745.73
Capital Work-in-Progress 6 3,142.85 4,672.16
52,139.13 51,417.89
Investments 7 1,198.11 1,198.11
Deferred Tax Assets 15,673.88 14,661.91
(Refer Note No. 21 of Schedule 21)
Current Assets, Loans & Advances
Inventories 8 244,870.52 242,096.11
Sundry Debtors 9 216,836.20 227,652.76
Cash & Bank Balances 10 357,840.50 264,194.52
Loans & Advances 11 43,332.83 49,754.61
862,880.05 783,698.00
Less: Current Liabilites and Provisions
Current Liabilites 12 443,102.49 413,853.75
Provisions 13 54,148.52 56,288.62
497,251.01 470,142.37
Net Current Assets 365,629.04 313,555.63
Miscellaneous Expenditure - -
(to the extent not writen of or adjusted)
434,640.16 380,833,54
Accountng Policies and Schedules 1 to 22 form part of Accounts.
As per our report of even date atached.
For R G N Price & Co. Ashwani Kumar Dat
H S Venkatesh
49
Proft and Loss Account for the year ended 31st March 2010
(Rs. in Lakhs)
Schedule
Year ended
31.3.2010
Year ended
31.3.2009
INCOME
Sales less returns 501,539.47 450,268.38
Revenue from Long Term Contracts - 1,908.50
Income from services 20,437.93 10,192.01
Turnover (Gross) 521,977.40 462,368.89
Less: Excise Duty 3,933.52 4,015.50
Turnover (Net) 518,043.88 458,353.39
Other revenues 14 36,334.89 22,571.07
Accreton / (Decreton) to Work-in-Progress, Finished Goods and Scrap 15 2,810.80 64,958.38
Proft on Sale of Fixed Assets (Net) 341.96 105.69
Transfer from Grants 964.34 320.29
558,495.87 546,308.82
EXPENDITURE
Consumpton of Raw Materials and Components 227,395.21 236,630.71
Consumpton of Stores & Spares 4,134.69 3,886.68
Purchase of Finished Goods 70,923.75 63,588.24
Employees Remuneraton and Benefts 16 100,958.47 75,579.35
Other Expenses of Manufacturing, Administraton, Selling and Distributon 17 35,813.23 37,591.91
Interest 18 53.48 1,076.85
Depreciaton / Amortsaton on Fixed Assets 11,594.23 10,559.77
450,873.06 428,913.51
Less: Expenditure allocated to Capital Jobs 35.74 37.36
450,837.32 428,876.15
Proft before Prior Period, exceptonal and extraordinary items 107,658.55 117,432.67
Less: Exceptonal Items - Expense 19 3,134.91 7,847.47
104,523.64 109,585.20
Less: Extraordinary items - -
Proft for the Year 104,523.64 109,585.20
Less: Prior Period Items (Net) 20 21.29 (98.39)
Proft Before Tax (PBT) 104,502.35 109,683.59
Less: Provision for Taxaton
- Current Year 33,500.00 34,727.00
- Earlier Years (72.78) 419.03
- Deferred Taxes (1,011.97) (418.41)
- Fringe Beneft Tax - 380.00
- Total Provision for Taxaton 32,415.25 35,107.62
Proft Afer Tax (PAT) 72,087.10 74,575.97
Less: Transfer to Capital Reserve (Capital Proft on sale of fxed assets included above) 90.77 8.73
Add: Balance Brought Forward from previous year 177,236.84 160,172.05
Proft available for appropriaton 249,233.17 234,739.29
Appropriatons:
Dividends:
Interim Dividend 4,800.00 4,800.00
Proposed Final Dividend 10,560.00 10,160.00
Dividend Tax 2,569.66 2,542.45
Transfer to General Reserve 40,000.00 40,000.00
Balance carried to Balance Sheet 191,303.51 177,236.84
249,233.17 234,739.29
Notes to Accounts 21
Balance Sheet Abstract & Companys General Business Profle 22
Earnings per Share (Equity Shares of Rupees Ten each) in Rupees:
Basic & Diluted:
Before Extraordinary Item Rs. 90.11 93.22
Afer Extraordinary Item Rs. 90.11 93.22
Face Value of share Rs. 10
)
10
Number of Shares used in computng earnings per share:
Basic & Diluted 80,000,000
)
80,000,000
Accountng Policies and Schedules 1 to 22 form part of Accounts.
H S Venkatesh
50
Schedules to Financial Statements
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 1
Share Capital
Authorised Capital
100,000,000 (100,000,000) Equity Shares of Rs. 10 each 10,000.00 10,000.00
Issued, Subscribed & Paid-up Capital
SCHEDULE 2
Reserves & Surplus
Capital Reserve
a) Land valuaton Reserve 200.64 200.64
b) Capital Proft:
At the beginning of the year 757.49 748.76
Add: Transfer from Proft & Loss Account 90.77 8.73
848.26 757.49
c) On acquisiton of Machilipatnam Unit 0.85 0.85
0.85 0.85
d) General Investment Subsidy for Kotdwara Unit 50.00 50.00
1,099.75 1,008.98
General Reserve
At the beginning of the year 192,122.33 152,122.33
Add: Transfer from Proft & Loss Account 40,000.00 40,000.00
232,122.33 192,122.33
Surplus
Balance carried from P & L Account 191,303.51 177,236.84
424,525.59 370,368.15
SCHEDULE 3
Government Grants
Grant from Government for Research and other purposes
Add: Additons during the year 661.99 645.75
Less: Transfer to Proft & Loss Account 964.34 320.29
2,041.96 2,344.31
2,041.96 2,344.31
SCHEDULE 4
Secured Loans
Cash Credit from Banks secured by hypothecaton
of Inventories and Book debts - -
Liability on Leased Assets (Secured by vehicles on lease) 72.61 121.08
72.61 121.08
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52
Schedules to Financial Statements (Contd.)
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 6
Capital Work in Progress at Cost
Civil Constructon 1,046.90 494.48
Plant, Machinery etc., 1,584.04 2,747.13
Capital Goods in Transit & under Inspecton 557.67 443.26
Less: Provision 368.03 368.03
189.64 75.23
Advances on account of Capital items 128.88 1,248.09
128.59 1,247.73
Intangible Assets Enterprise Resource Planning (ERP)
under implementaton
Opening Balance 107.59 112.41
Add: Amount incurred during the year 353.70 406.19
461.29 518.60
Less: Amount Capitalised during the year 267.61 411.01
193.68 107.59
3,142.85 4,672.16
SCHEDULE 7
Investments at Cost Long Term
Non-trade
Unquoted
Investment in Shares / Bonds:
40 Shares of Rs. 50 each fully paid in
Cufe Parade Persopolis Premises Co-op. Society, Mumbai 0.02 0.02
Sukh Sagar Premises Co-op. Society, Mumbai
Shri Sapta Ratna Co-op. Society Ltd., Mumbai 0.01 0.01
Dalamal Park Co-op. Society Ltd., Mumbai
Chandralok Co-op. Housing Society Ltd., Pune 0.02 0.02
Note: These are in respect of apartments owned by the Company,
cost of which is included under Fixed Assets
Trade
Unquoted
Subsidiary:
17,00,223 (17,00,223) Equity Shares of Rs. 100 each fully paid in
BEL Optronic Devices Ltd., Pune 936.08 936.08
Others:
GE BE Private Ltd., Bangalore 260.00 260.00
BEL Multtone Pvt. Ltd., Bangalore 31.88 31.88
Less: Provision for Diminuton in value of investment 29.90 29.90
1.98 1.98
1,198.11 1,198.11
Aggregate value of unquoted shares 1,198.11 1,198.11
53
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 8
Inventories
Stores and Spares 2,052.85 2,490.52
Raw Materials & Components 133,459.60 128,684.32
Materials in Transit and under Inspecton 6,069.28 10,344.86
5,868.62 10,230.68
Finished Goods 14,406.82 18,412.07
Work-in-Progress 97,824.51 91,017.51
Disposable Scrap 78.05 69.00
253,690.45 250,904.10
Less: Provision for obsolescence 8,819.93 8,807.99
244,870.52 242,096.11
SCHEDULE 9
Sundry Debtors
Debts Considered Good:
Debts over six months 100,080.13 85,278.06
Other debts 116,756.07 142,374.69
216,836.20 227,652.75
Debts Considered Doubtul:
Other debts 4,316.64 3,186.08
40,070.17 34,835.67
256,906.37 262,488.42
Less: Provision for doubtul debts 40,070.17 34,835.66
216,836.20 227,652.76
Partculars of Sundry Debtors:
Considered good in respect of which the
Company is fully secured
58.31 67.37
Considered good for which the Company holds
no security other than the debtors personal security
216,777.89 227,585.39
216,836.20 227,652.76
SCHEDULE 10
Cash and Bank Balances
Cash and Cheques on hand 14,589.61 21,926.23
With Scheduled Banks:
Current Accounts 45,067.50 33,166.29
Deposit Accounts (incl. Accrued Interest) 298,166.58 209,083.06
Unpaid Dividend Account 16.81 18.94
357,840.50 264,194.52
54
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 11
Loans and Advances
Loans to Employees * 1,814.42 1,974.33
Loans to Others 216.09 219.39
Advances Recoverable in cash or in kind or for
value to be received:
Advances to Employees * 820.42 1,211.37
Advances for Purchase 22,957.20 32,123.52
Claims Receivable Purchases 3,244.29 3,157.96
Advances to others 6,076.89 4,772.36
33,098.80 41,265.21
Advance payment of Income Tax (including FBT)
[Net of Provisions for Tax Rs. 104,886.74 (Rs. 107,623.77)] 5,498.01 3,633.16
Balances with Customs, Port Trust and Other
Government Authorites 1,667.97 1,633.31
Deposits 2,670.39 2,512.07
44,965.68 51,237.47
Less: Provision for Doubtul Loans, Advances and Claims 1,632.85 1,482.86
43,332.83 49,754.61
Partculars of Loans and Advances:
Considered good in respect of which the Company is fully secured - -
Considered good for which the Company holds no security
other than debtors personal security 43,332.83 49,754.61
Considered doubtul and provided for 1,632.85 1,482.86
44,965.68 51,237.47
* Includes due by Directors & Secretary Rs. 0.45 (Rs. 1.29)
[Maximum amount due at any tme during the year Rs. 0.80 (Rs. 2.00)]
SCHEDULE 12
Current Liabilites
Sundry Creditors:
Dues to Micro and Small Enterprises 166.79 154.98
Creditors - Others 80,113.12 95,966.84
Subsidiary Company 50.13 -
80,330.04 96,121.82
Other Liabilites 12,130.85 15,934.56
Advances / Progress Payments received from Customers 350,586.24 301,739.88
Investor Educaton & Protecton Fund to be credited when due:
Unpaid Dividend Account* 16.81 18.94
Unpaid Matured Deposits* 38.55 38.55
443,102.49 413,853.75
* Amount to be transferred to the Investor Educaton & Protecton Fund as
at Balance Sheet date.
NIL NIL

55
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 13
Provisions
Taxaton (Including FBT) [Net of Advance Tax Rs. 104,886.74
(Rs. 107,623.77) refer advance tax Schedule - 11]
- -
Dividend Tax 1,753.88 1,726.69
Employee Benefts :
Gratuity 3,198.76 12,294.59
Long-term compensated absences 16,791.87 13,898.72
BERECHS 12,327.76 10,413.56
Proposed Pension Scheme 4,817.56 -
Contngencies towards Long-term Contracts 598.75 3,957.27
Performance Warranty 4,099.94 3,837.79
54,148.52 56,288.62
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 14
Other Revenues
Sale of Scrap & Surplus Stores 635.19 613.91
Export Benefts 174.09 169.81
Income from Long - Term Trade Investments Dividend Gross (TDS Nil) 260.00 260.00
Interest Income Gross [TDS 2,180.45 (3,631.64)] 16,986.89 16,071.75
Interest Income from Staf / Income Tax refund / others 152.35 185.34
Transport Receipts 224.56 65.86
Rent Receipts 249.95 122.43
Canteen Receipts 377.87 141.79
Water Charges collected 32.36 32.55
Provision withdrawn - Contngencies towards long term contracts 3,358.52 -
Provision withdrawn - Doubtul Debts, LD, Obsolete Inventory etc. 4,473.66 2,991.86
Provision withdrawn - Others 522.18 593.65
Foreign Exchange Rate Diferental (Gain) 6,663.21 -
Miscellaneous 2,224.06 1,322.12
36,334.89 22,571.07
SCHEDULE 15
Accreton / (Decreton) to Work-in-progress, Finished Goods and Scrap
Work-in-Progress:
Closing Balance 97,824.51 91,017.51
Opening Balance 91,017.51 38,167.16
6,807.00 52,850.35
Finished Goods:
Closing Stock 14,406.82 18,412.07
Opening Stock 18,412.07 6,294.02
(4,005.25) 12,118.05
Scrap:
Closing Stock 78.05 69.00
Opening Stock 69.00 79.02
9.05 (10.02)
2,810.80 64,958.38
SCHEDULE 16
Employees Remuneraton and Benefts
Salaries, Wages and Bonus / Ex-grata 78,169.80 57,074.96
Gratuity 4,199.17 5,047.12
Contributon to Provident and Pension Funds 7,253.26 4,506.23
Provision for BEL Retred Employees Contributory Health Scheme 1,914.20 1,181.89
Welfare Expenses
[including Salaries 1,031.00 (999.53), PF Contributon 62.56 (63.97)] 9,422.04 7,769.15
100,958.47 75,579.35
56
(Rs. in Lakhs)
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 17
Other Expenses of Manufacturing,
Administraton, Selling & Distributon
Power and Fuel [afer adjustng Rs. 421.24 (Rs. 559.07)
income from wind energy] 2,411.62 2,598.57
Water charges 310.21 291.17
Royalty & Technical Assistance 1,007.72 122.46
Rent 1,121.98 442.13
Rates & Taxes 270.23 285.32
Insurance 323.36 426.73
Auditors Remuneraton:
Audit 7.08 7.08
Tax Audit 1.60 1.60
Certfcaton 1.99 1.99
Expenses 6.37 5.94
17.04 16.61
Repairs & Maintenance:
Buildings 1,399.17 1,891.14
Plant & Machinery 579.72 566.18
Others 4,120.87 3,757.17
6,099.76 6214.49
Bank Charges 489.96 471.96
Printng and Statonery 349.06 388.11
Discounts, Allowances & Rebate 3.65 2.34
Advertsement & Publicity 515.93 827.59
Travelling Expenses 3,731.48 3,651.88
Hiring Charges for Van & Taxis 393.84 484.57
Excise Duty Others 254.55 63.01
Packing & Forwarding 1,164.77 830.77
Bad Debts & Advances writen of 104.39 2,637.33
Less: Charged to Provisions 101.11 2,636.90
3.28 0.43
Provision for Obsolete / Redundant Materials 1,188.51 2,179.99
Provisions for Doubtul Debts, Liquidated Damages,
Customers Claims and Disallowances 8,803.79 7,276.50
Provision for Doubtul Advances, Claims 260.03 237.96
Provision for Warrantes 262.15 13.92
Write of of Raw Materials, Stores & Components
due to obsolescence and redundancy 203.03 21.89
Write - back of Material writen of earlier - (29.77)
Less: Charged to Provisions 179.22 -
23.81 (7.88)
Sponsorship / Contributon for Professional & Social Actvites 422.59 177.35
Provision for Contngencies towards Long-term Contracts - 148.12
Others:
Expenditure on Service Orders / other Misc. Direct Expenditure 2,963.76 2,301.18
Foreign Exchange Rate Diferental (Loss) - 3,763.21
Afer Sales Service 391.63 679.80
Telephones 609.83 609.54
Expenditure on Seminars & Courses 510.94 530.51
Selling Commission 87.85 424.64
Other Selling Expenses 83.77 421.04
6,383.91 10,447.81
35,813.23 37,591.91
57
(Rs. in Lakhs)
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 18
Interest
On Cash Credit - 0.16
Interest on Fixed Loan - Lease Financing 13.55 16.56
On Dues to Micro & Small Enterprises 2.50 1.20
On Others 37.43 1,058.93
53.48 1,076.85
SCHEDULE 19
Exceptonal Items
Company Contributon to proposed Pension Scheme for the
period from 1.1.2007 to 31.03.2009 3,134.91 -
Gratuity past liability on account of enhancement in limit from Rs. 3.50 lakhs to
Rs. 10 lakhs w.e.f. 1.1.2007 tll 31.03.2008 - 7,847.47
3,134.91 7,847.47
SCHEDULE 20
Prior Period Items
Prior Period Income:
Sales - (17.33)
Others 109.27 118.61
Total Prior Period Income (A) 109.27 101.28
Prior Period Expenditure:
Material Consumpton - 1.22
Salaries & Wages 1.77 -
Depreciaton (0.50) (0.48)
Others 129.29 2.15
Total Prior Period Expenditure (B) 130.56 2.89
Total Prior Period Items Net (Income) Expenditure [(A) - (B)] 21.29 (98.39)
58
2009-10 2008-09
Gross Expenditure 29,161.21 22,499.77
Income
Sales 1,476.53 651.93
Accreton / (Decreton) to
WIP & FG
2,221.42 426.81
Others 1,191.85 525.65
Gross Income 4,889.80 1,604.39
Net Expenditure 24,271.41 20,895.38
5. The Company has made certain modifcatons / changes
to accountng policies during the year 2009-10 which are
generally clarifcatory in nature except in respect of policy on
Employee Benefts. The changes made in Employee Benefts
and the impact thereof is as under:
- Leave Travel Concessions beneft given to employees
were hitherto treated as short-term benefts and
accounted on payment basis. As per the expert opinion
given by Expert Advisory Commitee (EAC) of The Insttute
of Chartered Accountants of India (ICAI), the liability
towards this is a long-term beneft and accordingly
should be actuarially valued. As per the actuarial
valuaton, the liability as on 31st March 2010 is Rs. 202.75
and this has been accounted in 2009-10.
- As per AS-15, the liability, if any, towards shortall
in payment of minimum interest by the Company
managed Provident Funds is to be actuarially valued
and provided for. Accordingly the Company actuarially
valued the positon as on 31st March 2010 and as per
Actuarys report, no additonal liability exists on this
account as on 31st March 2010 (31st March 2009 -
Rs. Nil).
6. Leters requestng confrmaton of Balances have been sent
in respect of Sundry Debtors, Sundry Creditors, Advances
and Deposits. Wherever replies have been received,
reconciliaton has been done and provisions / adjustments
have been made wherever considered necessary.
7. The Company has analysed indicatons of impairment of
assets of each geographical composite manufacturing unit
considered as Cash Generatng Units (CGU). On the basis
of assessment of internal and external factors, none of the
Units has found indicatons of impairment of its assets and
hence no provision is considered necessary.
8. a) In respect of certain Fixed Assets mentoned below,
executon of ttle / sale Deed by the appropriate
authorites is pending.
SCHEDULE - 21
Notes forming part of the Accounts for the year ended
31st March, 2010
1. Estmated amount of contracts remaining to be executed on
Capital Account and not provided for amounts to Rs. 11,524.66
(Rs. 6,581.64).
2. Exempton has been granted [vide GOI Leter No. 46 / 3 /
2010-CL-III dated 5th March 2010] to the Company from
compliance with the following provisions contained in Part II
of Schedule VI to the Companies Act, 1956, as amended:
Para Partculars
3(i)(a) Details regarding sales in respect of each class of
goods with quanttes thereof.
3(ii)(a)(1) Value of raw materials consumed giving item wise
break up and quanttes thereof.
3(ii)(a)(2) Opening and closing stock of goods produced
giving break up in respect of each class of goods
with quanttes thereof.
3(ii)(d) Value of opening and closing stock of goods,
purchases, sales and consumpton of raw materials
with quanttatve break up and Gross Income from
services rendered.
4 C Details regarding licensed capacity, installed
capacity and actual producton in respect of each
class of goods manufactured.
4 D (a) Value of imports calculated on CIF basis for the
year in respect of raw materials, components,
spares and Capital goods.
4 D (c) Value of imported and indigenous raw materials,
components and spares consumed and percentage
of each to the total consumpton.
3. a) Expenditure in foreign exchange on account of royalty,
know how, interest and other maters (on payment basis)
amounted to Rs. 335.86 (Rs. 555.44).
b) Earnings in foreign exchange on account of exports on
FOB basis amounted to Rs. 9,936.71 (Rs. 7,227.96).
4. Expenditure incurred on Research and Development
during the year, which are included in the respectve natural
classifcaton, is given below:
2009-10 2008-09
Expenditure
Materials 7,071.70 3,855.07
Employees Remuneraton &
Benefts
15,421.46 12,914.59
Depreciaton 1,867.58 1,559.67
Others 4,800.47 4,170.44
(Rs. in Lakhs)
59
(Rs. in Lakhs)
(i) Freehold land Rs. 3.75 (Rs. 3.75)
(Machilipatnam - 0.516 acres)
(ii) Leasehold land Rs. 0.18 (Rs. 0.18)
(Ghaziabad)
(iii) Buildings Rs. 0.16 (Rs. 0.16)
(Ghaziabad)
Deeds containing the terms of transfer / grant of land
from State Governments / State Undertakings have not
been fnalised in respect of 86.78 acres (86.78 acres)
pertaining to Panchkula Unit. Out of this, ttle in respect
of land measuring 0.962 acres is under litgaton.
Pending fnalisaton of formal deeds, no provision towards
registraton and other costs have been made.
b) Pending executon of ttle / sale deeds and handing over
of physical possession of land alloted to BEL Hyderbad
by Andhra Pradesh Industrial Infrastruture Corporaton
(APIIC) admeasuring 5.60 acres (5.60 acres) in Mallapur,
Hyderabad, no provision towards registraton and other
cost has been made in the books of accounts. Cost of
land paid to APIIC amountng to Rs. 65.12 (Rs. 65.12) is
included in Capital WIP-Advances.
c) Based on a Memorandum of Understanding reached
with the Defence authorites, expenditure on civil works
was incurred on land alloted to BEL for setng up of the
Hyderabad Unit. Pending fnalisaton of the terms and
conditons by the appropriate authorites, the cost of land
measuring 25.110 (25.110) acres has not been provided
in the books of accounts.
d) Land acquired free of cost from the Government in
some units has been accounted at a notonal value by
corresponding credit to Capital Reserve.
e) The Company has installed Windmill Generator at two
locatons. The leasehold land of the Windmill Generator-I
is capitalised at the nominal value of Rs. 5 (Five Rupees
only) as the upfront lease cost is nil. The leasehold land
of Windmill Generator-II is capitalised at the cost of
Rs. 114.00. In both the cases the lease agreement for the
land is pending fnalisaton.
f) Freehold land of Pune Unit measuring 3897.52
square meters (cost Rs. 0.48) is to be handed over to
Pimpri Chinchwad Municipal Corporaton for the
purpose of road widening at an estmated provisional
compensaton of Rs. 245.00 based on the rates fxed by
Moolya Nirdharan Suchi of Government of Maharastra.
Approval from Ministry of Defence, Government of India
is awaited.
9. a) In pursuance of the Companies (Amendment) Act, 1988
and Schedule XIV thereof increased rates of depreciaton
on straight line method in accordance with the Schedule
XIV have been adopted wherever required, only on
additons afer 1.4.1987.
b) Wherever the rates of depreciaton applied prior to
1.4.1987 are higher than the rates specifed in Schedule
XIV to the Companies Act, 1956 they have been contnued.
However, additons forming part of existng machines are
depreciated on the same basis as the original machines.
c) Depreciaton for multple shifs is charged on block of
assets for the full year.
d) The straight line rates of depreciaton adopted other than
those under Schedule XIV are as under:
i) Buildings 2.5% / 5%
ii) Plant and
Machinery
10% / 11.31% / 15% /
16.21% / 20% / 25%
iii) Vehicles 20% / 25%
iv) Furniture, Fixture and
other equipment
10% / 15% /
20% / 25%
v) Assets under Build,
Own, Operate and
Transfer (BOOT)
Contract
Depreciated over the
period of Contract
vi) Intangible Assets Amortsed over three years
10. a) Raw Materials and Components include Rs. 2,765.88
(Rs. 1,869.89) being materials with subcontractors,
out of which Rs. 163.38 (Rs. 160.75) of material is
subject to confrmaton and reconciliaton. The impact,
if any, on consequent adjustment is considered not
material.
b) Pending reconciliaton, stock verifcaton discrepancies for
the year [shortages of Rs. 141.36 (Rs.63.99) and surplus
of Rs. 82.30 (Rs. 16.28)] have not been adjusted in the
accounts.
11. Liability, if any, in respect of labour maters under dispute
before various judicial authorites is not ascertainable, but is
expected to be not material.
12. The exchange rate variatons arising on transactons in
foreign currency between the date of recording of such
transactons and the setlement / the Balance Sheet date
resultng in a net exchange gain of Rs. 6663.21 (Loss
60
Rs. 3,763.21) during the year have been included in the
Proft and Loss Account in Schedule No. 14 - Other Revenues
[Previous Year: in Schedule No. 17 - Other Expenses of
Manufacturing, Administraton, Selling & Distributon].
13. Excise Duty, which is included in turnover (Gross) is
shown as a deducton from turnover (Gross) in the Proft
and Loss Account. Excise Duty - Others included in the
Schedule 17 - Other Expenses of Manufacturing,
Administraton, Selling & Distributon represents
incremental provision of Excise Duty on Finished Goods,
Excise Duty on Sale of Scrap etc.
14. The informaton regarding amounts due to Micro and Small
Enterprises as required under Micro, Small & Medium
Enterprises Development (MSMED) Act, 2006 as on 31st
March 2010 is furnished below:
i) The principal amount and the interest due thereon
remaining unpaid to any supplier as at 31st March
2010:
Principal Amount Rs. 163.95 (Rs. 153.62)
Interest Rs. 1.74 (Rs. 0.47)
ii) The amount of interest paid by the Company along
with the amount of the payment made to the supplier
beyond the appointed day during the year ending 31st
March 2010:
Principal Amount Rs. 7.85 (30.89)
Interest Rs. 0.80 (0.33)
iii) The amount of interest due and payable for the period
of delay in making payment (which have been paid
but beyond the appointed day during the year)
but without adding the interest specifed under the
Act: Rs. 0.17 (0.79).
iv) The amount of interest accrued and remaining
unpaid at the end of the year ending 31st March 2010:
Rs. 2.84 (Rs. 1.36)
v) The amount of further interest remaining due and
payable even in the succeeding years, untl such date
when the interest dues as above are actually paid to
the small enterprise, for the purpose of disallowance as
a deductble expenditure under secton 23 of MSMED
Act: Rs. 2.50 (Rs. 1.20)
The informaton has been given in respect of such
suppliers to the extent they could be identfed as Micro
& Small Enterprises on the basis of informaton available
with the Company.
15. Contngent Liabilites:
a. Claims not
acknowledged as debts
Rs. 8,654.70 (Rs. 4,506.46)
b. Outstanding
Leters of Credit
Rs. 22,658.62 (Rs. 33,714.78)
c. Others Rs. 397.30 (Rs. 291.81)
d. Provisional Liquidated Damages up to 31.03.2010 on
unexecuted customer orders where the delivery date has
expired is Rs. 4,873.96 (Rs. 6,852.52).
16. The following disclosure is made as per AS-7 (Accountng for
Constructon Contracts) in respect of accountng policy 3i(c)
relatng to revenue recogniton on contracts:
a) Contract revenue recognised during the year Rs. Nil
(Rs. 1,908.50).
b) No contract revenue is recognised in the current year.
In the previous year, contract revenue was recognised
using the percentage of completon method. Rato of
the actual cost incurred on the contracts upto
31.03.2009 to the estmated total cost of the contracts,
was used to determine the stage of completon.
c) Aggregate amount of cost incurred: Rs. 43,009.84
(Rs. 70,613.40).
d) Recognised proft upto 31.03.2010 (net of provision
for contngency): Rs. 2,817.66 (Rs. 15,829.10).
e) Amount of advances received and outstanding
as at 31.03.10 - Rs. 48.85 (Rs. 48.88)
f) The amount of retenton Rs. 1,404.70 (Rs. 8,111.26)
17. Provision for wage revision in respect of non-executves
has been made in the accounts of 2009-10 based on
the wage setlement reached with Negotatng Trade
Unions (NTUs) during May 2010. This includes Rs.
7,987.35 pertaining to the period upto 31st March 2009.
As per the guidelines issued by the Department of Public
Enterprises (DPE), GOI on the pay revision for Ofcers
of PSUs, the Company has submited a proposal to the
Ministry of Defence, GOI for a Pension Scheme (Defned
Contributon Scheme) for Executves which has been
duly considered by the Board of Directors. Pending
approval by the Administratve Ministry, a provision for
Rs. 4,817.56 has been made in the accounts of 2009-
10 which includes Rs. 3,134.91 being the past liability
towards management contributon to Pension Scheme
for the period up to 31.03.2009 and the same has
been treated as an Exceptonal item in the Proft and Loss
Account.
(Rupees in Lakhs)
(Rupees in Lakhs)
61
(Rupees in Lakhs)
(Rupees in Lakhs)
Further, as per the DPE guidelines the Company has formulated
a new incentve scheme in lieu of the existng Executve
Performance Incentve Scheme (EPI Scheme) for Executves
viz. Performance Related Pay (PRP Scheme) efectve from the
Financial Year 2007-08 which has been duly recommended by
the Remuneraton Commitee and approved by the Board of
Directors. Necessary provision on this account has been made
in the accounts of 2009-10.
18. As per the provisions of revised Accountng Standard 15, the
following informaton is disclosed in respect of Employee
Benefts:
Gratuity Scheme:
The Company has a gratuity scheme for its employees, which
is a funded plan. Every year the Company remits funds to
the gratuity trust to the extent of shortall of the assets over
the fund obligatons, which is determined through actuarial
valuaton. As per the gratuity scheme, gratuity is payable
to an employee on the cessaton of his employment afer
he has rendered contnuous service for not less than 5 (fve)
years in the Company. For every completed year of service
or part thereof in excess of six months, the Company shall
pay gratuity to an employee at the rate of 15 (ffeen) days
salary based on the last drawn basic & dearness allowance.
The following tables summarise the components of net
beneft expense recognised in the Proft and Loss Account
and the funded status and amounts recognised in the
Balance Sheet for the plan as furnished in the Disclosure
Report provided by the actuary:
GRATUITY SCHEME:
Partculars
2009-10 2008-09
i) Change in Beneft Obligatons :
Present Value of Obligaton as at the
beginning of the year
35,120.87 24,027.68
Current Service Cost 2,784.62 2,351.75
Interest Cost 2,707.55 1,724.57
Past Service Cost (Non vested Benefts) - -

Past Service Cost (vested Benefts) - 7,192.98
Actuarial (gain) / Loss 3,525.25 1,890.61
Benefts paid (2,552.91) (2,066.72)
Present Value of Obligaton as at the end
of the period
41,585.38 35,120.87
ii)
Change in Fair Value of Plan Assets:
Fair Value of Plan Assets at the beginning
of the year
24,579.01 23,785.92
Partculars
2009-10 2008-09
Expected return on Plan Assets 2,794.49 2,252.46
Contributons 10,541.86 841.76
Benefts paid (2,552.91) (2,066.72)
Actuarial gain / (loss) on Plan Assets 3,074.51 (234.41)
Fair Value of Plan Assets at the end of
the period
38,436.96 24,579.01
Excess of Obligaton over Plan Assets 3,148.42 10,541.86
iii) Expenses Recognised in the Statement
of Proft & Loss A/c

Opening Net Liability - -
Interest Cost 2,707.55 1,724.57
Expected return on Plan Assets (2,794.49) (2,252.46)
Net Actuarial (gain) / loss recognised in
the period
450.73 2,125.02
Expenses Recognised in the Statement
of Proft & Loss [Excluding Rs. 1,050.75
(Rs. 1,752.73) in respect of retred
employees which has been provided on
actual basis]
3,148.42 11,141.86
Actual Return on Plan Assets 9.78% 9.72%
iv) Amounts recognised in Balance Sheet:
Present Value of Obligaton as at the end
of the period
41,585.38 35,120.87
Fair Value of Plan Assets at the end of the
period
38,436.96 24,579.01
Funded Status (3,148.42) (10,541.86)
Unrecognised Actuarial (gains) / losses - -
Liability recognised in Balance Sheet
[excluding Rs. 1,050.75 (1,752.73) in
respect of retred employees which has
been provided on actual basis & afer
considering payment of Rs. 1,000.41 to
the Trust during the year]
3,148.42 10,541.86
v) Category of Assets as at March 31 2010
State Govt. Securites 14.30% 23.94%
Govt. of India Securites 2.77% 9.14%
High Quality Corporate Bonds 22.99% 45.64%
Special Deposit 0.61% 0.97%
Investment with Insurer 59.33% 20.31%
vi) Principal Assumptons:
Discountng rate 8.00% 7.50%
Salary escalaton rate 7.50% 6.25%
Expected rate of Return on Plan Assets 9.78% 9.72%
62
BEL Retred Employees Contributory Health Scheme
(BERECHS):
The Company has a contributory health scheme for its
retred employees BEL Retred Employees Contributory
Health Scheme (BERECHS), which is a non-funded scheme.
The primary objectve of the scheme is to provide medical
facilites to employees retring on ataining the age of
superannuaton, or on VRS. Benefts under the scheme shall
be available to the employees who become members and
their spouses only. The Company takes insurance cover for
in-patent treatment. In additon to the annual insurance
premium, the Company bears 50% of the medicine cost and
75% of the cost of diagnostc tests for outpatent treatment
and for the treatment of specifed diseases, the Company
bears the full cost of treatment, over and above the insurance
coverage.
The following tables summarise the components of net
beneft expense recognised in the Proft and Loss Account
and the funded status and amounts recognised in the
Balance Sheet for the plan as furnished in the disclosure
report provided by the actuary:
BEL RETIRED EMPLOYEES CONTRIBUTORY HEALTH SCHEME
(BERECHS):
Partculars 2009-10 2008-09
Present Value of Obligaton (PVO) as at
the beginning of the year
11,383.04 10,535.00
Current Service Cost 733.26 643.87
Interest Cost 878.45 767.26
Actuarial (gain) / Loss 773.53 46.65

Benefts paid (804.88) (609.74)
end of the period
12,963.40 11,383.04
ii) Change in Fair Value of Plan Assets:
Fair Value of Plan Assets at the
- -
Expected return on Plan Assets - -
Contributons 804.88 609.74
Beneft paid (804.88) (609.74)
Actuarial gain / (loss) - -
the period
- -
iii) Expenses Recognised in the Statement
of Proft & Loss

Interest on Defned beneft obligaton 878.45 767.26
Partculars 2009-10 2008-09
the period
773.53 46.65
iv) Expenses Recognised in the Statement
of Proft & Loss A/c
2,385.24 1,457.78
Add : Amortsaton of Inital Actuarial
Liability towards existng employees
(valued on 31.03.2004) over 14 years
333.85 333.85
Net Expenses Recognised in the
Statement of Proft & Loss A/c
(Expenses: Rs. 804.89, Provisions:
Rs. 1,914.20)
2,719.09 1,791.63
v) Principal Assumptons :
Discountng Rate 8.00% 7.50%
Rate of increase in compensaton level 7.50% 6.25%
Health care costs escalaton rate 6.00% 6.00%
Atriton Rate 1.50% 2.00%
vi) Amounts recognised in Balance Sheet :
end of the period
12,963.40 11,383.04
the period
- -
Funded Status (12,963.40) (11,383.04)
(as per actuarial valuaton)
12,963.40 11,383.04
Less : Inital actuarial Liability towards
existng employees (valued on
31.03.2004) Amortsed over 14 years
2,972.56 2,972.56
Add : Amortsaton of above inital
actuarial liability tll 2009-10
2,336.92 2,003.07
Liability recognised in Balance Sheet 12,327.76 10,413.56
vii) Efect of a one percentage point
increase in assumed health care cost
trend rates on the aggregate of the
service cost and interest cost and
defned beneft obligaton

Efect on the aggregate of the service
cost and interest cost
42.63 33.88
Efect on defned beneft obligaton 324.08 284.57
viii) Efect of a one percentage point
decrease in assumed health care cost

(42.41) 33.67
Efect on defned beneft obligaton (323.35) (284.01)
Long Term Compensated Absence Scheme:
The Company has a Long Term Compensated Absence
Scheme for its employees, which is a Non-Funded Scheme.
The employees of the Company are enttled to two types of
(Rupees in Lakhs)
(Rupees in Lakhs)
63
(Rupees in Lakhs)
(Rupees in Lakhs)
Long Term Compensated Absences: Annual Leave (AL) and
Sick leave (SL). The Scheme provides for compensaton to
employees against the unavailed Leave (both AL & SL) on
ataining the age of superannuaton, VRS, resignaton (only
AL) and death. AL can also be encashed during service.
The following table summarises the components of net
beneft expense recognised in the Proft & Loss Account and
the funded status and amount recognised in the Balance
Sheet for the plan as furnished in the disclosure Report
provided by the actuary:
Partculars 2009-10 2008-09
i) Expenses Recognised in the Statement
of Proft & Loss

Statement of Proft & Loss A/c
[Expenses: Rs. 2,348.92, Provisions:
Rs. 2,728.41 excluding Provision for
Retred Non Executve Employees Rs.
164.74]
5,077.33 4,451.23
ii) Principal Assumptons:
Rate of increase in compensaton level 7.50% 6.25%
iii) Amounts to be recognised in Balance
Sheet:

(as per actuarial valuaton) excluding
Provision for Retred Non Executve
Employees Rs. 164.74
16,627.13 13,898.72
Provident Fund Contributons:
During the year the Company has recognised an amount
of Rs. 5,633.16 (Rs. 4,570.20) towards contributon to
Employees Provident Fund and Pension Schemes in the
Proft and Loss Account. The guidance on implementng AS
15 (Revised) issued by the Insttute of Chartered Accountants
of India states that provident funds setup by employers
that guarantee a specifed rate of return and which require
interest shortalls to be met by the employer would be
defned beneft plans in accordance with the requirements
of paragraph 26(b) of AS 15 and acturially valued.
Pursuant to the Guidance Note, the Company has determined
on the basis of actuarial Valuaton carried out as at 31st
March 2010 that there is no liability towards the interest
shortall on valuaton date under para 55 and 59 of AS 15 (R)
(having regard to terms of plan that there is no compulsion
on the part of the Trust to distribute any part of the surplus,
if any, by way of additonal interest on PF balances).
The following tables summarise the disclosure report
provided by the actuary:
Partculars 2009-10 2008-09

73,834.61 70,481.25
Interest Cost 5,060.33 4,750.58
Past Service Cost (vested Benefts) - -
Actuarial (gain) / Loss 2,092.02 (1,542.88)
Benefts paid (12,727.15) (14,280.35)

end of the period
83,740.57 73,834.61

82,664.65 75,203.16
Contributons 14,422.76 14,955.71
Beneft paid (12,727.15) (14,280.35)
Actuarial gain / (loss) on Plan Assets 53.22 176.31

Fair Value of Plan Assets at the end of the
period
91,720.82 82,664.65
iii)
of Proft & Loss A/c

Interest Cost 5,060.33 4,750.58

the period
2,038.80 (1,719.19)

of Proft & Loss A/c
15,272.55 10,847.58
iv) Amounts recognised in Balance Sheet :

end of the period
83,740.57 73,834.61

the period
91,720.82 82,664.65
Diference (7,980.25) (8,830.04)
Liability recognised in Balance Sheet - -
v) Amount for the Current Period
Present Value of Obligaton 83,740.57 73,834.61
Plan Assets 91,720.82 82,664.65
Surplus / (Defcit) 7,113.25 8,830.04

Experience Adjustments on Plan
liabilites - (Loss) / Gain
(1,572.56) 1,542.88

Experience Adjustments on Plan Assets
- (Loss) / Gain
53.22 176.31
vi) Category of Assets as at 31 March 2010
Government of India Securites 25.60% 15.42%
State Government Securites 15.28% 20.98%
Equity shares of listed companies 0.00% 0.00%
Property 0.00% 0.00%
Special Deposit Scheme 0.34% 18.22%
Mutual Funds 0.00% 0.01%
Cash 0.00% 0.00%
Total 100.00% 100.00%
64
Partculars 2009-10 2008-09
vii) Principal Assumptons:
Expected rate of Return on Plan Assets 8.75% 8.75%
Experience adjustments for funded schemes
The disclosure with respect to clause 120 (n) of AS-15(R)
towards experience adjustments are being made for funded
schemes viz. Gratuity. As long term compensated absences
and BERECHS are not funded, such disclosure is not required.
Partculars 2009-10 2008-09 2007-08
i) Present Value of Obligaton as
at the end of the period
41,585.38 35,120.87 24,027.68
ii) Fair Value of Plan Assets at the
end of the period
38,436.96 24,579.01 23,785.92
iii) Excess of Obligaton over Plan
Assets Surplus / (defcit)
(3,148.42) (10,541.86) (241.76)
Experience Adjustments
iv) Experience Adjustments on
Plan liabilites - (Loss) / Gain
(1,485.62) (472.76) (1,529.33)
v) Experience Adjustments on Plan
Assets - (Loss) / Gain
3,074.51 (234.41) 47.75
Best Estmate of Contributon to be paid
The best estmate of contributon to be paid towards Gratuity
during the annual period beginning afer the Balance Sheet
is Rs. 3,198.76 (Rs. 12,294.59). In case of Provident Fund,
there is no actuarial liability assessed for short fall in interest
as at year end.
19. The Company is engaged in manufacture and supply of
strategic electronic products primarily to Defence Services
and hence it would not be in public interest for the Company
to present segment informaton. For similar reasons the
Company has been granted exempton from publicaton in
the annual accounts the quanttatve partculars required
under Schedule VI to the Companies Act, 1956. The SEBI has
also granted exempton, for these reasons, to the Company
from publicaton of segment informaton required under
Accountng Standard 17 (AS 17) in quarterly unaudited
fnancial results. Hence Segment informaton required
under Accountng Standard 17 (AS 17) is not disclosed. Such
non-disclosure has no fnancial efect.
20. As per the provisions of Accountng Standard 19, the
following informaton is disclosed in respect of Finance
Lease:
a) The net carrying amount (WDV) at the Balance Sheet
date in respect of vehicles taken on lease is Rs. 63.44
(Rs. 113.06).
b) Total minimum lease payments as at the Balance Sheet
date is Rs. 85.49 (Rs. 149.46) and the present value is
Rs. 72.61 (Rs. 121.08).
The minimum lease amount payable with present value
for each of the following periods is given below:
Period
Minimum
Lease
Payments
Present
Value
i) not later than one year Rs. 37.24
(Rs. 47.84)
Rs. 35.16
(Rs. 45.20)
ii) later than one year
& not later than fve
years
Rs. 48.25
(Rs. 101.62)
Rs. 37.45
(Rs. 75.88)
iii) later than fve years NIL NIL
Rs. 85.49 Rs. 72.61
21. Break up of Net Deferred Tax Assets is given below:
Deferred Tax Assets 2009-10 2008-09
Provision against Debts, Inventory,
Performance Guarantee & Leave
Encashment etc.
19,888.78 18,811.29
Technical Know-how fee 302.55 228.35
20,191.33 19,039.64
Deferred Tax Liability
Depreciaton 4,517.45 4,377.73
4,517.45 4,377.73
Net Deferred Tax Assets 15,673.88 14,661.91
22. Related Party Disclosure:
(a) The related partes and their relatonship with the
Company are as under:
- Subsidiary Company viz. BEL Optronic Devices Ltd.,
(Equity Holding 92.79%);
- Joint Venture Companies:
GE BE Private Ltd. (Equity Holding 26%); and
BEL Multtone Private Ltd., (Equity Holding 49%)
The transactons with related partes are as follows:
Sl.
No.
Partculars
Subsidiary Joint Ventures
Grand
Total
BELOP GE BE
BEL
Multtone
1 Purchase of Goods 428.24
(255.87)
-
(-)
-
(-)
428.24
(255.87)
2 Sale of Goods -
(0.99)
1048.37
(930.18)
-
(-)
1048.37
(931.17)
3 Rendering Services 1.19
(-)
-
(0.12)
-
(-)
1.19
(0.12)
(Rupees in Lakhs)
65
Sl.
No.
Partculars
Subsidiary Joint Ventures
Grand
Total
BELOP GE BE
BEL
Multtone
4 Receiving Services -
(-)
1.41
(-)
-
(-)
1.41
(-)
5 Rent Received -
(-)
-
(-)
0.34
(0.32)
0.34
(0.32)
6 Provision of Corporate
Guarantees
-
(-)
-
(-)
-
(-)
-
(-)
7 Interest Income on
Loans
-
(-)
-
(-)
-
(-)
-
(-)
8 Dividend Income on
Investments
-
(-)
260.00
(260.00)
-
(-)
260.00
(260.00)
9 Creditors outstanding as
on 31.03.2010
50.13
(-)
0.07
(0.07)
-
(-)
50.20
(0.07)
10 Debtors outstanding as
on 31.03.2010
1.19
(1.02)
323.98
(273.76)
-
(-)
325.17
(274.78)
11 Provision for doubtul
debtors as on
31.03.2010
-
(-)
17.88
(18.41)
-
(-)
17.88
(18.41)
12 Investment in Equity as
on 31.03.2010*
936.08
(936.08)
260.00
(260.00)
31.88*
(31.88)
1227.96
(1227.96)
* Against this, a provision of Rs. 29.90 towards diminuton in
value of investment in BEL Multtone Private Limited has been
made.
(b) Management contracts including deputaton of
Employees:-
Two ofcials (Managers) of BEL have been deputed
to BELOP (Subsidiary) and their salary etc. is paid by
BELOP during the year as per terms and conditons of
employment.
(c) The key management personnel & their remuneraton
details are as follows:
The total salary including other benefts drawn by the key
management personnel during the year 2009-10 is Rs. 323.45
(Rs. 178.93) as detailed below:
Names with
designaton
Year
Salary &
Allowances
incl.
benefts*
Contribut-
ion to PF
& Incre-
mental
Gratuity /
Leave /
BERECHS
Leased
Accommo-
daton
Others Total
Shri A K Dat
[CMD from 01.05.09] &
D(OU) upto 30.04.09
2009-10 28.17 4.87 9.90 2.23 45.17
2008-09 10.54 14.00 2.74 0.58 27.86
Shri V V R Sastry
[CMD upto 30.04.09]
2009-10 26.20 1.19 2.53 2.68 32.60
2008-09 12.41 13.48 3.09 0.60 29.58
Shri P R K Hara Gopal
Director [Finance]-
upto 31.07.09
2009-10 24.17 4.36 3.68 2.26 34.47
2008-09 12.11 5.47 3.03 0.58 21.19
Names with
designaton
Year
Salary &
Allowances
incl.
benefts*
Contribut-
ion to PF
& Incre-
mental
Gratuity /
Leave /
BERECHS
Leased
Accommo-
daton
Others Total
Shri M.G. Raghuveer
Director [Finance]-
from 01.08.09
2009-10 13.67 7.48 - 1.63 22.78
2008-09 - - - - -
Shri M.L. Shanmukh
Dir [HR]
2009-10 26.64 13.48** 8.18 2.26 50.56
2008-09 9.95 5.95 3.03 0.58 19.51
Shri Anil Kumar
Dir [OU] -
from 03.02.10
2009-10 3.30 2.06 - 1.98 7.34
2008-09 - - - - -
Shri H S Bhadoria
Dir [BG CX]
2009-10 28.11 5.61 8.06 2.25 44.03
2008-09 9.58 13.55 3.03 0.58 26.74
Shri N K Sharma
Dir [Mktg] upto
31.08.09
2009-10 25.48 1.50 4.18 1.78 32.94
2008-09 10.88 14.35 3.03 0.54 28.80
Shri H N Ramakrishna
Dir [Mktg] -from
01.09.09
2009-10 11.37 5.70 - 1.65 18.72
2008-09 - - - - -
Shri I V Sarma
Dir [R&D]
2009-10 22.35 4.15 6.48 1.86 34.84
2008-09 12.37 12.41 - 0.47 25.25
Total [Current Year] 2009-10 209.46 50.40 43.01 20.58 323.45
Total [Previous Year] 2008-09 77.84 79.21 17.95 3.93 178.93
* includes terminal benefts at the tme of retrement.
** includes past service cost pertaining to previous
employment.
23. Disclosure as required under AS 29 - Provisions, contngent
liabilites and contngent assets:
Provision for warranty is made towards meetng the
expenditure on account of performance guarantee and
warrantes in accordance with accountng policy No. 13. The
details of the same are given below:
Opening
Balance
as on
01.04.2009
Additonal
Provisions
made during
the year
Amounts
used during
the year*
Unused
Amounts
reversed during
the year
Closing
Balance
as on
31.03.2010
3,837.79
(3,864.06)
1,464.99
(1,180.48)
485.26
(526.82)
717.58
(679.93)
4,099.94
(3,837.79)
* includes Rs. Nil (40.19) debited to opening provision.
24. Interest in Joint Venture Companies (JVCs):
Disclosure of interest in Joint Venture, as per Accountng
Standard 27, is as under:
Name of Joint Ventures
Proportonate
Ownership of BEL
a) GE BE Private Limited 26%
b) BEL Multtone Private Limited 49%
Country of Incorporaton India
(Rupees in Lakhs)
66
The proportonate share of assets, liabilites, income and
expenditure of the above JVCs are given below:
Partculars
GE BE Pvt. Ltd.
(Audited)
BEL Multtone Pvt.
Ltd. (Audited)
Sources of Funds 31.3.2010 31.3.2009 31.3.2010 31.3.2009
Share Capital 260.00 260.00 31.88 31.88
Reserves & Surplus 11,119.04 9,399.95
- -
Secured Loans 30.81 37.61 - -
Unsecured Loans - - 21.50 21.50
Total 11,409.85 9,697.56 53.38 53.38
Applicaton of Funds
Net Fixed Assets 1,285.10 1,125.36 - -
Capital Work in progress 122.98 281.03 - -
Investments 0.03 0.03 - -
Deferred Tax Assets 177.53 180.93 - -
Current Assets, Loans &
Advances:
Inventory 1,046.72 1,101.38 - -
Sundry Debtors 1,381.64 695.11 1.20 1.49
Cash & Bank 0.46 5.58 35.95 35.25
Loans & Advances 9,433.04 8,679.27 1.02 1.33
Total Current Assets 11,861.85 10,481.34 38.17 38.07
Current Liabilites & Provisions:
Current Liabilites 1,934.05 2,039.37 12.62 13.35
Provisions 103.59 331.77 - -
Total Current Liabilites 2,037.64 2,371.14 12.62 13.35
Net Current Assets 9,824.21 8,110.21 25.55 24.72
Debit balance in P & L A/c - - 27.83 28.66
Total 11,409.85 9,697.56 53.38 53.38
Particulars
GE BE Pvt. Ltd.
(Audited)
BEL Multitone Pvt.
Ltd. (Audited)
Income 31.3.2010 31.3.2009 31.3.2010 31.3.2009
Turnover 13,241.53 13,733.33 - -
Excise Duty (12.27) (10.15) - -
Other revenues 709.33 659.23 1.92 2.56
Total Income (A) 13,938.58 14,382.41 1.92 2.56
Expenditure
Mfg. & other expenses 10,974.85 12,000.20 1.08 1.32
Finance cost 5.54 7.77 - -
Depreciation 359.73 323.04 - -
Provision for taxation 880.29 686.51 - 0.18
Total Expenditure (B) 12,220.41 13,017.53 1.08 1.50
Proft (Loss) after tax (A) - (B) 1,718.17 1,364.88 0.84 1.06
The Companys share of contngent liabilites in the JVCs is
as under:
Partculars
GE BE Pvt. Ltd.
(Audited)
BEL Multtone Pvt. Ltd.
(Audited)
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Capital Commitments 25.27 45.93 - -
Other Contngent Liabilites 2,225.36 1,642.11 - -
25. Pursuant to the announcement of the ICAI requiring the
disclosure of Foreign Exchange Exposure, the major currency-
wise exposure as on 31.3.2010 is given below:
Currency
Payables Receivables Contngent Liability*
Foreign
Currency
Indian Rupee
equivalent
Foreign
Currency
Indian Rupee
equivalent
Foreign
Currency
Indian Rupee
equivalent
USD
439.01
(654.47)
20,095.82
(33,353.48)
53.48
(47.66)
2,389.07
(2427.36)
301.68
(432.38)
13,743.58
(22,034.01)
Euro
149.33
(269.48)
9,173.64
(18,186.69)
17.29
(0.01)
1,030.53
(0.67)
142.55
(118.62)
8756.76
(8,005.78)
GBP
12.93
(49.26)
893.33
(3,589.22)
0.15
(0.06)
10.18
(4.37)
11.41
(15.75)
788.53
(1,147.65)
JYEN
44.49
(97.99)
31.03
(50.93)
-
(-)
-
(-)
164.61
(172.21)
80.83
(89.34)
SGD
1.25
(1.34)
40.93
(45.47)
-
(-)
-
(-)
0.66
(-)
21.63
(-)
CHF
5.71
(47.82)
245.50
(2,157.75)
0.43
(-)
20.18
(-)
1.21
(2.23)
52.28
(100.85)
Canadian
Dollars
-
(-)
-
(-)
-
(-)
-
(-)
-
(0.05)
-
(1.84)
Others
-
(-)
363.67
(187.09)
-
(-)
11.11
(-)
-
(-)
34.49
(1,156.22)
Total (Rs.)
-
(-)
30,843.92
(57,570.63)
-
(-)
3,461.07
(2,432.40)
-
(-)
23,478.10
(32,535.69)
Amount covered
by Exchange Rate
variaton clause from
Customers out of the
above
14,809.49
(35,992.80)
-
(-)
-
(-)
-
(-)
3501.67
(14,350.72)
* includes exposures relatng to outstanding Leters of Credit and
Capital Commitments.
The Company does not have any derivatve instruments.
26. Previous years fgures have been regrouped wherever
necessary. Figures in brackets relate to previous year.
H S Venkatesh
(Rupees in Lakhs)
67
H S Venkatesh
Schedules 1 to 22 form part of the Accounts
Schedules to Financial Statements (Contd...)
SCHEDULE - 22
Balance Sheet Abstract and Companys General Business Profle
I Registraton Details
Registraton No 7 8 7 State Code 0 8
Balance Sheet Date 3 1 0 3 2 0 1 0
Date Month Year
II Capital raised during the year (Amount in Rs. Lakhs)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III Positon of Mobilisaton and Deployment of Funds (Amount in Rs. Lakhs)
Total Liabilites Total Assets
4 3 4 6 4 0 4 3 4 6 4 0
Sources of Funds
Paid-up Capital Reserves & Surplus
8 0 0 0 4 2 4 5 2 6
Secured Loans Unsecured Loans
7 3 N I L
Applicaton of Funds
Net Fixed Assets Investments
4 8 9 9 6 1 1 9 8
Net Current Assets Misc. Expenditure
3 6 5 6 2 9 N I L
Accumulated Losses
N I L
IV Performance of Company (Amount in Rs. Lakhs)
Turnover Total Expenditure
5 2 1 9 7 7 4 5 7 9 2 7
Proft Before Tax Proft Afer Tax
1 0 4 5 0 2 7 2 0 8 7
Earning Per Share in Rs. Dividend %
9 0 1 9 2
V Generic names of three Principal Products / Services of Company (as per monetary terms)
Item Code No. (ITC Code) 8 5 2 6 1 0 0 0
Product Descripton R A D A R
Product Descripton C O M M U N I C A T I O N
T R A N S M I T T E R S
C U M R E C E I V E R S
Product Descripton E L E C T R O
O P T I C P R O D U C T S
68
Cash Flow Statement for the year ended 31st March 2010
(Rs. in Lakhs)
Partculars 2009-10 2008-09
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Proft Before Tax as per Proft & Loss Account 104,502.35 109,683.59
Adjustments for:
Depreciaton (incl. prior period items) 11,593.73 10,559.28
Provision for Employee Benefts 529.08 15,732.08
Provision for Contngencies towards Long-term Contract -3,358.52 148.12
Provision for Performance Guarantee 262.15 -26.27
Interest Income -16,986.89 -16,071.75
Dividend Income -260.00 -260.00
Interest Expense 53.48 1,076.85
Proft on Sale of Fixed Assets -341.96 -105.69
Transfer from Government Grants -964.34 -320.29
Operatng Proft Before Working Capital Changes 95,029.08 120,415.92
Adjustments for:
Trade and Other Receivables 19,103.18 -22,142.22
Inventories -2774.41 -106,939.01
Trade Payables & Advances 29,250.87 84,938.04
Cash Generated from Operatons 140,608.72 76,272.73
Receipt of Grants 661.99 645.75
Direct Taxes Paid (Net) -35,292.07 -36,987.01
Cash Flow Before Extraordinary Items 105,978.64 39,931.47
Extraordinary Items - -
Net Cash from Operatng Actvites 105,978.64 39,931.47
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets -12,331.71 -17,078.35
Sale of Fixed Assets 358.70 126.54
Bank Deposits -128,223.37 3,731.25
Interest Received 16,986.89 16,071.75
Dividend Received 260.00 260.00
Net Cash from / (used in) Investng Actvites -122,949.49 3,111.19
C. CASH FLOW FROM FINANCING ACTIVITIES :
Increase / Decrease in Long-term Loan Borrowings -48.47 -16.73
Dividends Paid (including Dividend Tax) -17,504.60 -19,372.63
Increase / Decrease in Unpaid Matured Deposits - -0.07
Interest Expens -53.48 -1,076.85
Net Cash used in Financing Actvites -17,606.55 -20,466.28
Net Increase / Decrease in Cash and Cash Equivalents (A+B+C) -34,577.40 22,576.38
Cash and Cash Equivalents at the beginning of the Year 126,255.64 103,679.26
Cash and Cash Equivalents at the end of the Year 91,678.24 126,255.64
Notes:
1. The above statement has been prepared under indirect method as per the Accountng Standard on Cash Flow Statement (AS - 3).
2. Additons to Fixed Assets are stated inclusive of movements of Capital Work-in-Progress between the beginning and end of the period and treated
as Investng Actvites.
3. Cash and Cash Equivalents consists of Cash on hand, Balances with Banks and Deposits having a maturity period of three months or
less from the date of deposit. Cash and Bank Balance shown in Schedule No. 10 is inclusive of Rs. 266,162.26 (Rs. 137938.88) being the
deposits having an original maturity period of more than three months.
H S Venkatesh
Consolidated Financial Statements
69
Auditors Report
To
The Board of Directors
Regd. Ofce : Outer Ring Road
Nagavara
Bangalore-560 045
We have audited the atached Consolidated Balance Sheet of Bharat Electronics Limited Group as at 31st March 2010 and the Consolidated
Proft and Loss Account and also the Consolidated Cash Flow Statement for the year ended on that date annexed thereto. These
fnancial statements are the responsibility of the management. Our responsibility is to express an opinion on these fnancial statements
based on our audit.
We conducted our audit in accordance with generally accepted auditng standards in India. These standards require that we plan and
perform the audit to obtain reasonable assurance whether the fnancial statements are prepared, in all material respects, in accordance
with an identfed fnancial reportng frame work and are free of material misstatements. An audit includes examining, on a test basis,
evidence supportng the amounts and disclosures in fnancial statements. An audit also includes assessing the accountng principles
used and signifcant estmates made by management, as well as evaluatng the overall fnancial statements. We believe that our audit
provides a reasonable basis of our opinion.
We did not audit the fnancial statements of the Subsidiary BEL Optronics Devices Limited whose fnancial statements refect total assets
of Rs. 32.52 Crores as at 31st March 2010, total revenues of Rs. 63.58 Crores and Cash Out Flows amountng to Rs. 7.72 Crores for the
year ended, whose fnancial statements were audited by other auditors. The fnancial statements of Joint Venture GE BE Private Limited
and BEL Multtone Private Limited are audited by other auditors, and in our opinion, in so far as it relates to amounts included in respect
of joint venture, are based solely on these audit reports.
We report that the Consolidated Financial Statements have been prepared by the Companys management in accordance with the
requirements of Accountng Standard -21- Consolidated Financial Statements and Accountng Standard 27 - fnancial reportng of interest
in joint ventures issued by the Insttute of Chartered Accountants of India to the extent they are applicable.
Based on our audit and on consideraton of the reports of other auditors on separate fnancial statements, in our opinion and to the best
of our informaton and according to the explanatons given to us, the atached Consolidated Financial Statements give a true and fair
view in conformity with the accountng principle generally accepted in India:
(a) In the case of the Consolidated Balance Sheet, of the state of afairs of the Group as at 31st March 2010;
(b) In the case of the Consolidated Proft and Loss Account, of the Proft for the year ended on that date; and
(c) In the case of the Consolidated Cash Flow Statement, of the cash fows for the year ended on that date.
For R G N Price & Co.

H S Venkatesh
Place : Bangalore Partner
Date : 30th July 2010 Membership No.: 026666
FR No: 0027865S
70
Signifcant Accountng Policies on the Consolidated Financial Statements (CFS) for the year 2009-10
1. BASIS OF ACCOUNTING
The fnancial statements are prepared and presented
under the historical cost conventon, in accordance with
Generally Accepted Accountng Principles in India (GAAP),
on the accrual basis of accountng, except as stated herein.
GAAP comprises the mandatory Accountng Standards (AS)
covered by the Companies (Accountng Standards) Rules,
2006 issued by the Central Government, to the extent
applicable, and the provisions of the Companies Act, 1956
and these have been consistently applied.
2. USE OF ESTIMATES
The preparaton of the fnancial statements in conformity
with GAAP, requires that the management make estmates
and assumptons that afect the reported amounts of assets
and liabilites, disclosure of contngent liability as at the
date of fnancial statements and the reported amounts of
revenue and expenses during the reportng period. Although
such estmates are made on a reasonable and prudent basis
taking into account all available informaton, actual results
could difer from these estmates and such diferences are
recognised in the period in which the results are ascertained.
3. REVENUE RECOGNITION
(i) Revenue from sale of goods is recognised as under:
a. In the case of FOR contracts, when the goods are
handed over to the carrier for transmission to
the buyer afer prior inspecton and acceptance,
if stpulated, and in the case of FOR destnaton
contracts, if there is a reasonable expectaton
of the goods reaching destnaton within the
accountng period. Revenue is recognised even
if goods are retained with the Company at the
request of the customer.
b. In the case of ex-works contracts, when the
specifed goods are unconditonally appropriated
to the contract afer prior inspecton and
acceptance, if required.
c. In the case of contracts for supply of complex
equipments / systems where the normal cycle tme
of completon / delivery period is more than 24
months and the value of the equipment / system
is more than Rs. 100 crores, revenue is recognised
on the percentage completon method.
Percentage completon is based on the rato of
actual costs incurred on the contract upto the
reportng date to the estmated total cost of the
contract.
Since the outcome of such a contract can be
estmated reliably only on achieving certain
progress, revenue is recognised upto 25%
progress only to the extent of costs. Afer this
stage, revenue is recognised on proportonate
basis and a contngency provision equal to 20% of
the surplus of revenue over costs is made while
antcipated losses are recognised in full.
d. If the sale price is pending fnalisaton, revenue is
recognised on the basis of price expected to be
realised. Where break up prices of sub units sold
are not provided for, the same are estmated.
e. Price revisions and claims for price escalatons on
contracts are accounted on admitance.
f. Where installaton and commissioning is stpulated
and price for the same agreed separately, revenue
relatng to installaton and commissioning is
recognised on conclusion of installaton and
commissioning actvity. In case of a composite
contract, where separate fee for installaton and
commissioning is not stpulated and the supply is
efected and installaton and commissioning work
is pending, the estmated costs to be incurred
on installaton and commissioning actvity is
provided for and revenue is recognised as per the
contract.
g. Sales exclude Sales Tax / Value Added Tax (VAT)
and include Excise Duty.
(ii) Other income is recognised on accrual.
4. FIXED ASSETS AND CAPITAL WORK-IN-PROGRESS:
(i) Tangible Assets:
Tangible fxed assets are stated at cost less
accumulated depreciaton / amortsaton including
where the same is acquired in full or in part with
Government grant. Cost for this purpose includes
71
all atributable costs for bringing the asset to its
locaton and conditon, cost of computer sofware
which is an integral part of the related hardware,
and also includes borrowing costs during the
acquisiton / constructon phase, if it is a qualifying
asset requiring substantal period of tme to get ready
for intended use. The cost of Fixed Assets acquired
from a place outside India includes the exchange
diferences if any, arising in respect of liabilites in
foreign currency incurred for acquisiton of the same
upto 31.03.2007.
Capital work-in-progress comprises supply-cum-
erecton contracts, the value of capital supplies
received at site and accepted capital goods in
transit and under inspecton and outstanding
advances paid to acquire Fixed Assets and the
cost of Fixed Assets that are not yet ready for
their intended use as at the Balance Sheet date.
(ii) Intangible Assets:
The cost of sofware (which is not an integral part of
the related hardware) acquired for internal use and
resultng in signifcant future economic benefts, is
recognised as an intangible asset in the books of
accounts when the same is ready for use.
(iii) Impairment of Assets:
The Company assesses the impairment of assets
with reference to each Cash Generatng Unit (CGU)
at each Balance Sheet date if events or changes in
circumstances, based on internal and external
factors, indicate that the carrying value may not be
recoverable in full. The loss on account of impairment,
which is the diference between the carrying amount
and recoverable amount, is accounted accordingly.
Recoverable amount of a CGU is its Net Selling Price or
Value in Use whichever is higher. The Value in Use is
arrived at on the basis of estmated future cash fows
discounted at Companys pre-tax borrowing rates.
Reversal of impairment provision is made when there
is an increase in the estmated service potental of an
asset, either from use or sale, on reassessment afer
the date when impairment loss for that asset was last
recognised.
5. DEPRECIATION / AMORTISATION
Tangible depreciable Fixed Assets are generally depreciated
on straight-line method at the rates (or higher rates as
disclosed) and in the manner prescribed in Schedule XIV to
the Companies Act, 1956. Special instruments are amortsed
over related producton. Intangible Assets are amortsed
over a period of three years on straight-line method. Prorata
depreciaton / amortsaton is charged from / upto the date
on which the assets are ready to be put to use / are deleted
or discarded. Leasehold land is amortsed over the period of
lease.
6. BORROWING COSTS
Borrowing costs that are specifcally atributable to qualifying
assets as defned in Accountng Standard AS 16 are added
to the cost of such assets untl use or sale and the balance
expensed in the year in which the same is incurred.
7. RESEARCH & DEVELOPMENT EXPENDITURE
Research and Development expenditure other than on
specifc development-cum-sales contracts is charged of
as expenditure when incurred. R & D expenditure on
development-cum-sale contracts is treated at par with
other sales contracts. Such expenditure on fxed assets is
capitalised.
8. GOVERNMENT GRANTS
All Grants from Government are initally recognised as
Deferred Income.
acquisiton of Fixed Assets is transferred to the credit of
Proft and Loss Account in proporton to the depreciaton
charged on the respectve assets to the extent atributable
to government grants utlised for the acquisiton.
Revenue Expenses is transferred to the credit of Proft and
Loss Account to the extent of expenditure incurred in the
rato of the funding to the total sanctoned cost, limited to
the grant received.
Grants in the nature of promoters contributon are credited
to Capital Reserve.
9. INVESTMENTS
(i) Investments are categorised as Trade or Non-Trade.
Trade investments are the investments made to
enhance the Companys business interests.
72
(ii) Investments are further classifed either as long-term
or current based on the Managements intenton
at the tme of purchase. Long term investments are
valued at acquisiton cost. Any diminuton in the value
other than of temporary nature is provided for. Current
investments are carried at lower of cost or fair value.
10. INVENTORY VALUATION
All inventories of the Company other than disposable scrap
are valued at lower of cost or net realisable value. Disposable
scrap is valued at estmated net realisable value. Cost of
materials is ascertained by using the weighted average
cost formula. Cost of work in progress and fnished goods
include Materials, Direct Labour and appropriate overheads.
Finished goods at factories include applicable excise duty.
Adequate provision is made for inventory, which are more
than fve years old which may not be required for further
use.
11. SUNDRY DEBTORS
(i) Full provision is made for all debts considered
doubtul of recovery having regard to the following
consideratons:
a. Time barred debts from government / government
departments / government companies are
generally not treated as doubtul debts.
b. Where debts are disputed in legal proceedings,
provision is made if any decision is given against
the Company even if the same is taken up on
appeal to higher authorites / courts.
(ii) Provision for bad and doubtul debts is generally
made for debts outstanding for more than three
years, exceptng those which are contractually not
due as per the terms of the contract or those which
are considered realisable based on a case to case
review.
12. INCOME TAX
Tax expense comprising current tax afer considering
deferred tax and fringe beneft tax as determined under
the prevailing tax laws are recognised in the Proft and Loss
Account for the period.
Certain items of income and expenditure are not considered
in tax returns and fnancial statements in the same period.
The net tax efect calculated at the current enacted tax rates
of this tming diference is reported as deferred income
tax asset / liability. The efect on deferred tax assets and
liabilites due to change in such assets / liabilites as
at the end of the accountng period as compared
to the beginning of the period and due to a change in
tax rates are recognised in the Proft and Loss Account
for the period.
13. PROVISION FOR WARRANTIES
Provision for expenditure on account of performance
guarantee & replacement / repair of goods sold is made on
the basis of trend based estmates.
14. FOREIGN CURRENCY TRANSACTIONS
Foreign exchange transactons including that of integral
foreign branches are recorded using the exchange rates
prevailing on the dates of the respectve transactons.
Monetary assets and liabilites denominated in foreign
currencies as at the Balance Sheet date are translated at
period-end rates. The resultant exchange diference arising
from setlement of transactons during the period and
translatons at the period end, except those upto 31.03.2007
relatng to acquisiton of Fixed Assets from a place outside
India, is recognised in the proft and loss account. Exchange
diferences relatng to the acquisiton of Fixed Assets
were adjusted in the carrying cost of the Fixed Assets tll
31.03.2007.
Premium or discount arising at the incepton of the forward
exchange contract is amortsed as income / expenditure
over the life of the contract.
The exchange rate diferences on the amount of forward
exchange contracts between the rate on the last reportng
date / the rate at the tme of entering into a contract during
the period and the rate on the setlement date are recognised
in the statement of Proft and Loss in the reportng period in
which the exchange rates change. The exchange diferences
arising from the rates prevailing at the tme of entering into
the contract and the reportng date are also accrued and
adjusted in the Proft and Loss Account.
Any Proft or Loss arising on cancellaton or renewal of a
forward exchange contract is recognised as income or as
expense in the period when the cancellaton or renewal
occurs.
15. EMPLOYEE BENEFITS
(i) All employee benefts payable wholly within twelve
months of rendering the related services are
classifed as short term employee benefts and they
mainly include (a) Wages & Salaries; (b) Short-term
73
compensated absences; (c) Proft-sharing, incentves
and bonuses and (d) Non-monetary benefts such as
medical care, subsidised transport, canteen facilites
etc., which are valued on undiscounted basis and
recognised during the period in which the related
services are rendered.
Incremental liability for payment of long term
compensated absences such as Annual and Sick leave
as well as Leave Travel Concession (LTC) is determined
obligaton determined annually on actuarial basis
using Projected Unit Credit Method and the carrying
value of the provision contained in the balance sheet
and provided for.
(ii) Defned contributon to Employee Pension Scheme
is made on monthly accrual basis at the applicable
rates.
(iii) Incremental liability for payment of Gratuity and
Employee Provident Fund to employees is determined
obligaton determined annually on actuarial basis using
Projected Unit Credit Method and the Fair Value of
Plan Assets funded in an approved trust set up for the
purpose for which monthly contributons are made in
the case of provident fund and lump sum contributons
in the case of gratuity.
(iv) Incremental liability under BEL Retred Employees
Contributory Health Scheme (BERECHS) is determined
annually on actuarial basis using Projected Unit Credit
Method and provided for.
(v) Actuarial liability for the year is determined with
reference to employees at the end of January of each
year.
(vi) Payments of voluntary retrement benefts are charged
of to revenue on incurrence.
16. PRIOR PERIOD ADJUSTMENTS AND EXTRAORDINARY
ITEMS
Prior period adjustments and extraordinary items having
material impact on the fnancial afairs of the Company are
disclosed.
17. TECHNICAL KNOW-HOW
Revenue expenditure incurred on technical know-how is
charged of to Proft and Loss Account on incurrence.
18. PROVISIONS AND CONTINGENT LIABILITIES
Provisions for losses and contngencies arising as a result of
a past event where the management considers it probable
that a liability may be incurred, are made on the basis of the
best reliable estmate of the expenditure required to setle
the present obligaton on the Balance Sheet date, and are not
discounted to its present value. Provisions are reviewed at
each Balance Sheet date and adjusted to refect the current
best estmate. Signifcant variatons thereof are disclosed.
Contngent liabilites to the extent the management is aware,
are disclosed by way of notes to the accounts.
19. CASH FLOW STATEMENT
Cash fow statement has been prepared in accordance with the
indirect method prescribed in Accountng Standard - 3 on Cash
Flow Statements.
20. BASIS OF CONSOLIDATION
The consolidated fnancial statements are prepared in
accordance with the following Accountng Standards issued
by the Insttute of Chartered Accountants of India: Accountng
Standard 21 (Consolidated Financial Statements) in respect
of the Subsidiary Company and Accountng Standard 27
(Financial Reportng of Interests in Joint Ventures) in respect
of Joint Venture Companies.
H S Venkatesh
Partner
Membership No. 026666
Firm Regn. No. 002785S
Place : Bangalore
Date : 30th July 2010
Ashwani Kumar Dat
Chairman & Managing Director
M G Raghuveer
Director (Finance)
C R Prakash
Company Secretary
74
Consolidated Balance Sheet as at 31st March 2010
(Rs. in Lakhs)
Schedule
As at
31.3.2010
As at
31.3.2009
SOURCES OF FUNDS
Shareholders Funds
Share Capital 1 8,000.00 8,000.00
Reserves & Surplus 2 437,617.06 381,859.38
445,617.06 389,859.38
MINORITY INTEREST 2A 220.47 204.41
Government Grants 3 2,083.74 2,397.97
Loan Funds
Secured Loans 4 106.72 162.69
Unsecured Loans 5 21.51 21.51
128.23 184.20
448,049.50 392,645.96
APPLICATION OF FUNDS
Fixed Assets
Gross Block 179,880.50 167,096.22
Less: Depreciaton / Amortsaton 128,806.98 118,238.56
Net Block 6 51,073.52 48,857.66
Less: Unrealised Proft 0.12 0.12
Net Block afer Unrealised Proft 51,073.40 48,857.54
Capital Work-in-progress 7 3,272.93 4,989.38
54,346.33 53,846.92
Investments 8 0.07 0.07
Deferred Tax Assets
(Refer Note No. 17 of Schedule 22) 15,832.37 14,803.22
Current Assets, Loans & Advances
Inventories 9 246,884.90 244,250.47
Sundry Debtors 10 219,501.84 229,434.73
Cash & Bank Balances 11 358,669.65 265,773.65
Loans & Advances 12 53,268.66 59,384.88
878,325.05 798,843.73
Less: Current Liabilites and Provisions
Current Liabilites 13 445,849.20 417,707.78
Provisions 14 54,605.12 57,140.20
500,454.32 474,847.98
Net Current Assets 377,870.73 323,995.75
Miscellaneous Expenditure
(To the extent not writen of or adjusted)
Technical Know-how fee - -
448,049.50 392,645.96
Notes to CFS 22
Accountng Policies and Schedules 1 to 22 form part of CFS.
H S Venkatesh
Partner
Place : Bangalore
Ashwani Kumar Dat
M G Raghuveer
Director (Finance)
C R Prakash
Company Secretary
75
H S Venkatesh
Partner
Place : Bangalore
Ashwani Kumar Dat
M G Raghuveer
Director (Finance)
C R Prakash
Company Secretary
Consolidated Proft and Loss Account for the year ended 31st March 2010
(Rs. in Lakhs)
Schedule
Year ended
31.3.2010
Year ended
31.3.2009
INCOME
Sales less returns 519,527.71 466,323.06
Revenue from Long Term Contracts - 1,908.50
Income from services 20,943.74 10,517.67
Turnover (Gross) 540,471.45 478,749.23
Less: Excise Duty 4,018.17 4,058.80
Turnover (Net) 536,453.28 474,690.43
Other revenues 15 36,986.69 23,079.41
Accreton / (Decreton) to Work-in-Progress, Finished Goods and Scrap 16 2,958.62 65,047.18
Proft on Sale of Fixed Assets (Net) 343.30 108.34
Transfer from Grants 976.22 333.19
577,718.11 563,258.55
EXPENDITURE
Consumpton of Raw Materials and Components 241,388.33 248,792.13
Consumpton of Stores & Spares 4,205.85 3,927.98
Purchase of Finished Goods 70,923.75 63,588.24
Employees Remuneraton and Benefts 17 101,761.64 76,321.27
Other Expenses of Manufacturing, Administraton, Selling and Distributon 18 36,960.29 39,568.98
Interest 19 58.47 1,082.76
Depreciaton / Amortsaton on Fixed Assets 12,229.78 11,284.83
467,528.11 444,566.19
Less: Expenditure allocated to Capital Jobs 35.74 37.36
467,492.37 444,528.83
Proft before Prior Period and Extraordinary Items 110,225.74 118,729.72
Less: Exceptonal Items - Expens 20 3,134.91 7,847.47
107,090.83 110,882.25
Less: Extra ordinary item - -
Proft for the Year 107,090.83 110,882.25
Less: Prior Period Items (Net) 21 17.52 (97.12)
Proft Before Tax (PBT) 107,073.31 110,979.37
Less: Provision for Taxaton
- Current Year 34,462.99 35,427.91
- Earlier Years (107.53) 419.03
- Deferred Taxes (1,029.15) (553.89)
- Fringe Beneft Tax - 386.64
- Total Provision for Taxaton 33,326.31 35,679.69
Proft Afer Tax Before Minority Interest 73,747.00 75,299.68
Minority Interest 16.40 (27.37)
Proft Afer Tax Afer Minority Interest 73,730.60 75,327.05
Less: Transfer to Capital Reserve (Capital Proft included above) 90.77 8.73
Add: Balance Brought Forward from previous year 184,657.52 167,022.34
Proft available for appropriaton 258,297.35 242,340.66
Appropriatons:
Dividends:
Interim Dividend 4800.00 4,800.00
Dividend Tax 2,613.85 2,586.64
Transfer to General Reserve 40,171.86 40,136.50
Balance carried to Balance Sheet 200,151.64 184,657.52
258,297.35 242,340.66
Notes to CFS 22
Earnings per Share (Equity Shares of Rupees Ten each) in Rupees:
Basic & Diluted:
Before Extraordinary Item Rs. 92.16 94.16
Afer Extraordinary Item Rs. 92.16 94.16
Face Value of Share Rs. 10.00 10.00
Number of Shares used in computng earnings per share:
Basic & Diluted 80,000,000 80,000,000
Accountng Policies and Schedules 1 to 22 form part of CFS.
76
Schedules to Consolidated Financial Statements
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 1
Share Capital
Authorised Capital
Issued, Subscribed & Paid-up Capital
SCHEDULE 2
Reserves & Surplus
Capital Reserve
a) Land Valuaton Reserve 200.64 200.64
b) Capital Proft:
Add: Transfer from Proft & Loss Account 90.77 8.73
848.26 757.49
c) Capital Reserve on Consolidaton of Subsidiary 206.82 206.82
d) ESOP [JVC - GE BE Pvt. Ltd.,] 1.85 0.92
e) On acquisiton of MC Unit 0.85 0.85
f) General Investment Subsidy for Kotdwara Unit 50.00 50.00
1,308.42 1,216.72
General Reserve
Add: Transfer from Proft & Loss Account 40,171.86 40,136.50
233,714.42 193,542.56
Surplus
Balance carried from P & L Account 200,151.64 184,657.52
P & L Surplus / Adjst. on Consolidaton of JVCs 2,442.70 2,442.70
202,594.34 187,100.22
Less: Unrealised Proft on Stock 0.12 0.12
202,594.22 187,100.10
437,617.06 381,859.38
SCHEDULE 2A
Minority Interest
Add: Transfer from Proft & Loss Account 16.40 (27.37)
220.81 204.52
Less: Consolidaton Adjustments 0.34 0.11
220.47 204.41
SCHEDULE 3
Government Grants
Grant from Government for Research and other purposes
Add: Additons during the year 661.99 645.75
Less: Transfer to Proft & Loss Account 976.22 333.19
2,083.74 2,397.97
SCHEDULE 4
Secured Loans
Liability on Leased Assets (Secured by vehicles on lease) 106.72 162.69
106.72 162.69
SCHEDULE 5
Unsecured Loans
Others 21.51 21.51
21.51 21.51
77
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78
Schedules to Consolidated Financial Statements (Contd.)
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 7
Capital Work In Progress at Cost
Civil Constructon 1,046.90 513.65
Plant, Machinery etc. 1,714.12 3,042.24
Capital Goods in Transit & under Inspecton 557.67 446.20
189.64 78.17
Advances on account of Capital Items 128.88 1,248.09
128.59 1,247.73
Intangible Assets Enterprise Resource Planning (ERP)
under implementaton
Opening Balance 107.59 112.41
Add: Amount incurred during the year 353.70 406.19
461.29 518.60
Less: Amount Capitalised during the year 267.61 411.01
193.68 107.59
3,272.93 4,989.38
SCHEDULE 8
Investments at Cost Long Term
Non-trade
Unquoted
Investment in Shares / Bonds:
Cufe Parade Persopolis Premises Co-op. Society, Mumbai 0.02 0.02
Sukh Sagar Premises Co-op. Society, Mumbai
Shri Sapta Ratna Co-op. Society Ltd., Mumbai 0.01 0.01
Dalamal Park Co-op. Society Ltd., Mumbai
Chandralok Co-op. Housing Society Ltd., Pune 0.02 0.02
Note: These are in respect of apartments owned by BEL,
cost of which is included under Fixed Assets
Government Securites 0.02 0.02
0.07 0.07
Aggregate Value of Unquoted Shares 0.07 0.07
SCHEDULE 9
Inventories
Stores and Spares 2,134.46 2,600.08
Raw Materials & Components 134,596.10 129,788.27
Materials in Transit and under Inspecton 6,078.30 10,640.75
5,877.64 10,526.57
Finished Goods 14,453.22 18,574.49
Work-in-Progress 98,603.78 91,526.32
Disposable Scrap 78.05 69.00
255,743.25 253,084.73
Less: Provision for obsolescence 8,851.39 8,831.59
Unrealised Proft on Stock 6.96 2.67
246,884.90 244,250.47
79
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 10
Sundry Debtors
Debts Considered Good:
Debts over six months 99,992.70 85302.05
Other debts 119,509.14 144,132.67
219,501.84 229,434.72
Considered Doubtul:
Other debts 4,316.64 3,186.08
40,071.41 34,836.84
259,573.93 264,271.56
Less: Provision for doubtul debts 40,071.41 34,836.83
219,501.84 229,434.73
Partculars of Sundry Debtors:
Considered good in respect of which the Company is fully secured 58.31 67.37
Considered good for which the Company holds
no security other than the debtors personal security 219,443.53 229,367.36
219,501.84 229,434.73
SCHEDULE 11
Cash and Bank Balances
Cash and Cheques on hand 14,590.51 21,926.68
With Scheduled Banks:
Current Accounts 45,168.89 33,512.48
Deposit Accounts (incl. Accrued Interest) * 298,800.45 210,226.27
Margin Money Account 92.99 89.28
Unpaid Dividend Account 16.81 18.94
358,669.65 265,773.65
* Term deposits of Rs. 92.99 (89.28) have been pledged with bank
SCHEDULE 12
Loans and Advances
Loans to Employees 1,815.92 1,975.84
Loans to Others 216.09 219.39
Advances Recoverable in cash or in kind or for
value to be received:
Advances to Employees * 823.28 1,214.22
Advances for Purchase 22,991.47 32,146.74
Claims Receivable Purchases 3,244.29 3,157.96
Advances to others 6,867.80 4,802.02
33,926.84 41,320.94
Advance payment of Income Tax (including FBT)
[Net of Provisions for Tax Rs. 106,549.25 (Rs. 109,280.49)] 5,946.98 4,552.90
Balances with Customs, Port Trust and other Government Authorites 1,667.97 2,349.97
Deposits 11,347.30 10,468.29
54,921.10 60,887.33
Less: Provision for Doubtul Loans, Advances and Claims 1,652.44 1,502.45
53,268.66 59,384.88
80
(Rs. in Lakhs)
Partculars
As at
31.3.2010
As at
31.3.2009
SCHEDULE 12 (Contd.)
Partculars of Loans and Advances:
Considered Good in respect of which the Company is fully secured - -
Considered good for which the Company holds no security
other than debtors personal security 53,268.66 59,384.88
Considered doubtul and provided for 1,652.44 1,502.45
54,921.10 60,887.33
* Includes due by Directors & Secretary Rs. 0.45 (Rs. 1.29)
[Maximum amount at any tme during the year
Rs. 0.80 (Rs. 2.19)].
SCHEDULE 13
Current Liabilites
Sundry Creditors:
Dues to Micro and Small Enterprises 188.14 194.38
Creditors - Others 82,454.60 98,876.32
82,642.74 99,070.70
Other Liabilites 12,331.80 16,733.83
Advances / Progress Payments received from Customers 350,819.30 301,845.76
Investor Educaton & Protecton Fund to be credited when due:
Unpaid Dividend Account * 16.81 18.94
Unpaid Matured Deposits * 38.55 38.55
445,849.20 417,707.78
* Amount to be transferred to the Investor Educaton & Protecton Fund
as at Balance Sheet date
NIL NIL
SCHEDULE 14
Provisions
Taxaton
(Including FBT) [Net of Advance Tax Rs. 105,796.49 (Rs. 107,739.87)] 327.79 714.18
Dividend Tax 1,798.07 1,770.88
Employee Benefts
Gratuity 3,214.56 12,325.82
Long-term compensated absenses 16,837.27 13,938.39
BERECHS 12,327.76 10,413.57
Proposed Pension Scheme 4,817.56 -
Contngencies towards Long-term Contracts 598.75 3,957.27
Performance Guarantee 4,123.36 3,860.09
54,605.12 57,140.20

81
(Rs. in Lakhs)
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 15
Other Revenues
Sale of Scrap & Surplus Stores 655.35 633.04
Export Benefts 174.09 169.81
Interest Income Gross [TDS 2,260.34 (3,797.49)] 17,575.21 16,814.51
Interest Income from Staf / Income Tax refund / others 152.35 185.34
Transport Receipts 224.56 65.86
Rent Receipts 249.95 122.43
Canteen Receipts 377.87 141.79
Water Charges 32.36 32.55
Provision withdrawn Contngencies towards long term contracts 3,358.52 -
Provision withdrawn Doubtul Debts, LD, Obsolete Inventory etc., 4,473.66 2,991.86
Provision withdrawn Others 522.18 594.46
Foreign Exchange Rate Diferental (Gain) 6,939.75 -
36,986.69 23,079.41
SCHEDULE 16
Accreton / (Decreton) to Work-in-progress Finished Goods and Scrap
Work-in-Progress:
Closing Balance 98,603.78 91,526.32
Opening Balance 91,526.32 38,591.44
7,077.46 52,934.88
Finished Goods:
Closing Stock 14,453.22 18,574.49
Opening Stock 18,574.49 6,449.61
(4,121.27) 12,124.88
Scrap:
Closing Stock 78.05 69.00
Opening Stock 69.00 79.02
9.05 (10.02)
2,965.24 65,049.74
Less: Unrealised Proft on Stock 6.62 2.56
2,958.62 65,047.18
SCHEDULE 17
Employees Remuneraton and Benefts
Salaries, Wages and Bonus / Ex-grata 78,872.48 57,713.57
Gratuity 4,205.59 5,068.33
Contributon to Provident and Pension Funds 7,316.24 4,555.01
Provision for BEL Retred Employees Contributory Health Scheme 1,914.20 1,181.89
Welfare Expenses [including Salaries 1,031.00 (999.53),
PF Contributon 62.56 (63.97)] 9,453.13 7,802.47
101,761.64 76,321.27
82
(Rs. in Lakhs)
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 18
Other Expenses of Manufacturing, Administraton, Selling & Distributon
Power and Fuel
[afer adjustng Rs. 421.24 (Rs. 559.07) income from wind energy] 2,662.65 2,837.74
Water charges 313.18 294.96
Royalty & Technical Assistance 1,134.55 255.64
Rent 1,123.86 443.39
Rates & Taxes 296.06 310.45
Insurance 335.18 441.89
Auditors Remuneraton:
Audit 11.57 11.57
Tax Audit 1.98 2.03
Certfcaton 1.99 1.99
Expenses 6.42 6.00
21.96 21.59
Repairs & Maintenance:
Buildings 1,441.13 1,922.61
Plant & Machinery 704.80 714.90
Others 4,165.53 3,845.85
6,311.46 6,483.36
Bank Charges 503.21 481.35
Printng and Statonery 352.21 391.29
Discounts, Allowances & Rebate 3.65 2.34
Advertsement & Publicity 515.93 827.59
Travelling Expenses 3,789.03 3,709.76
Hiring Charges for Van & Taxis 393.84 484.57
Excise Duty Others 256.51 63.01
Packing & Forwarding 1,164.77 830.77
Bad Debts & Advances writen of 104.50 2,741.77
Less: Charged to Provisions 101.11 2,741.34
3.39 0.43
Provision for Obsolete / Redundant Materials 1,188.51 2,179.99
Provisions for Doubtul Debts, Liquidated damages,
Customers Claims and Disallowances 8,803.79 7,276.50
Provision for Doubtul Advances, Claims 260.03 237.96
Provision for Warrantes 265.76 13.71
Write of of Raw Materials, Stores & Components
due to obsolescence and redundancy 203.03 21.89
Write-back of Material writen of earlier - (29.77)
Less: Charged to Provisions 179.22 -
23.81 (7.88)
Sponsorship / Contributon for Professional & Social Actvites 422.59 177.35
Provision for Contngencies towards Long-term Contracts - 148.12
Others:
Expenditure on Service Orders / Other Misc. Direct Expenses 3,440.38 2,812.68
Foreign Exchange Rate Diferental - 4,452.81
Afer Sales Service 391.63 679.80
Telephones 628.01 627.74
Expenditure on Seminars & Courses 510.94 530.51
Selling Commission 87.85 424.64
Other selling Expenses 83.77 421.04
36,960.29 39,568.98
83
(Rs. in Lakhs)
Partculars
Year ended
31.3.2010
Year ended
31.3.2009
SCHEDULE 19
Interest
On Cash Credit from Bankers - 0.16
On Lease Financing 18.54 21.55
On Dues to Micro & Small Enterprises 2.50 2.10
On Others 37.43 1,058.95
58.47 1,082.76
SCHEDULE 20
Exceptonal Items
Company contributon to proposed Pension Scheme for the
period from 1 / 1 / 2007 to 31 / 3 / 2009 (BEL) 3,134.91 -
Gratuity past liability on account of enhancement in limit from Rs. 3.50 Lakhs
to Rs. 10 Lakhs w.e.f. 1 / 1 / 2007 tll 31 / 3 / 2008 (BEL) - 7,847.47
3,134.91 7,847.47
SCHEDULE 21
Prior Period Items
Prior Period Income:
Sales - (17.33)
Others 113.16 118.95
Total Prior Period Income (A) 113.16 101.62
Prior Period Expenditure:
Material Consumpton - 1.22
Repairs & Maintenance 1.77 -
Depreciaton (0.50) (0.48)
Others 129.41 3.76
Total Prior Period Expenditure (B) 130.68 4.50
Total Prior Period Items - Net Expenses / Income [(A) - (B)] 17.52 (97.12)
84
SCHEDULE 22
Notes to Consolidated Financial Statements for the year ended
31.3.2010
1.0 Consolidaton Procedure:
1.1 The Consolidated Financial Statements (CFS) have been
prepared on the basis of audited fnancial statements of
the Parent Company viz. Bharat Electronics Limited (BEL),
its subsidiary viz. BEL Optronic Devices Limited, Pune, India
(Share Holding 92.79%), and audited fnancial statements
of Joint Venture Company (JVC) viz. GE BE Private Limited,
Bangalore (Share Holding 26%) and BEL Multtone Private
Limited, Bangalore (JVC - Share Holding 49%). The fnancial
statements of the Parent and its Subsidiary have been
combined on a line-by-line basis by adding together like items
of assets, liabilites, income and expenses, afer eliminatng
intra-group transactons and unrealised proft / loss. In respect
of JVCs, consolidaton has been done on proportonate
consolidaton basis, afer eliminatng intra-group transactons
and unrealised proft / loss. The fnancial statements of the
subsidiary and JVCs are drawn up to the same reportng date
as that of the Parent Company.
1.2 The diference between the cost to the parent company of
its investment in the subsidiary company and the parent
companys porton of the equity in the subsidiary with
reference to the date of acquisiton of controlling interest is
recognised in the fnancial statements as Goodwill / Capital
Reserve. The parent companys share of post acquisiton
proft / losses of the subsidiary is adjusted in the revenue
reserves.
1.3 Minority interests in the net results of operatons and
the net assets of the subsidiary represent that part of the
proft / loss and the net assets not atributable to the parent
company.
2.0 Additonal informaton disclosed in individual fnancial
statements of the parent and subsidiary / JVCs having
no bearing on the true and fair view of the consolidated
fnancial statements and also the informaton pertaining to
the items which are not material have not been disclosed
in the consolidated fnancial statements in view of the
Accountng Standards Interpretaton (ASI)-15 issued by
the Insttute of Chartered Accountants of India (ICAI), New
Delhi.
3.0 Impact of Changes in Accountng Policies:
3.1 The Parent company has made certain modifcatons / changes
to accountng policies during the year 2009-10 which are
generally clarifcatory in nature except in respect of policy
on Employee Benefts. The changes made in Employee
Benefts and the impact thereof is as under:
- Leave Travel Concessions beneft given to employees
were hitherto treated as short-term benefts and
accounted on payment basis. As per the expert
opinion given by Expert Advisory Commitee (EAC) of
The Insttute of Chartered Accountants of India (ICAI),
the liability towards this is a long-term beneft and
accordingly should be actuarially valued. As per the
actuarial valuaton, the liability as on 31st March 2010
is Rs. 202.75 and this has been accounted in 2009-10.
- As per AS-15, the liability, if any, towards shortall in
payment of minimum interest by the Company managed
Provident Funds is to be actuarially valued and provided
for. Accordingly the Parent Company actuarially valued
the positon as on 31st March 2010 and as per Actuarys
report, no additonal liability exists on this account as on
31st March 2010 (31st March 2009 - Rs. Nil).
3.2 The Accountng Policy of the parent and subsidiary / JVCs are
generally uniform except in respect of the following items,
which are not material in nature and it is not practcable to
quantfy the proporton of such items in the CFS:
- Cost of inventories is generally assigned by using the
weighted average cost formula, except in case of JVCs,
which are following FIFO method for RMC and bought out
items for resale.
- Depreciaton on Fixed Assets is calculated generally
on the straight line method except in case of a Joint
(Rs. in Lakhs)
85
Venture Company viz M / s. BEL Multtone Private
Limited which is following WDV method consistently.
BEL Multtone Pvt. Ltd. (JVC) does not have any Fixed
Assets as on 31st March 2010.
4. Estmated amount of contracts remaining to be executed
on Capital Account and not provided for amounts to
Rs. 11,549.93 (Rs. 6,668.21).
5. Leters requestng confrmaton of balances have been sent
in respect of Sundry Debtors, Sundry Creditors, Advances
and Deposits. Generally replies have been received and
reconciled. Provisions / adjustments have been made
wherever considered necessary.
6. i) In pursuance of the Companies (Amendment) Act,
1988 and Schedule XIV thereof increased rates of
depreciaton on straight line method in accordance
with the Schedule XIV have been adopted wherever
required, only on additons afer 1.4.1987.
ii) Wherever the old rates of depreciaton applied prior to
1.4.1987 are higher than the rates specifed in Schedule
XIV of the Companies Act, 1956 they have been
contnued. However, additons forming part of existng
machines are depreciated on the same basis as the
original machines.
iii) Depreciaton for multple shifs is charged on block of
assets for the full year.
iv) The rates of depreciaton adopted other than those
under Schedule XIV are as under:
a) Buildings 2.5% / 5%
b) Plant and Machinery 10% / 11.31% / 15% /
16.21% / 20% / 25%
c) Vehicles 20% / 25%
d) Furniture, Fixture and 10% / 15% /
Other Equipment 20% / 25%
e) Computers
[in JVC - GE BE (P) Ltd.,] 50%
f) Assets under Build, Depreciated over
Own, Operate the period of
and Transfer (BOOT) contract
Contract
g) Intangible Assets Amortsed over
three years
7. The Parent Company has analysed indicatons of
impairment of assets of each geographical composite
manufacturing units considered as Cash Generatng
Units (CGU). On the basis of assessment of internal and
external factors, none of the Units has found indicatons
of impairment of its assets and hence no provision is
considered necessary. The subsidiary (BELOP) and GE BE
Pvt. Ltd. (JVC) have also analysed indicatons of impairment
of assets and found no indicaton of impairment of
assets and hence no provision for the same is considered
necessary. BEL Multtone Pvt. Ltd. (JVC) does not have any
Fixed Assets.
8. The exchange Rate variatons arising on transactons in
foreign currency (including relatng to fxed assets, in
previous excluding those relatng to Fixed Assets) between
the date of recording of such transactons and the
setlement / the Balance Sheet date resultng in a net
exchange gain of Rs. 6,939.75 (Loss Rs. 4,452.81) during the
year have been included in Schedule No. 14 - Other Revenues
[Previous Year: in Schedule No. 17 - Other Expenses of
Manufacturing, Administraton, Selling & Distributon].
9. Raw Materials and Components of Parent Company
includes Rs. 2,765.88 (Rs. 1,869.89) being materials with
subcontractors. Out of which Rs. 163.38 (Rs. 160.75) of
material is subject to confrmaton and reconciliaton.
The impact, if any, on consequent adjustment is considered
not material.
10. The informaton regarding amounts due to Micro and Small
Enterprises as required under Micro, Small & Medium
Enterprises Development (MSMED) Act, 2006 as on
31st March 2010 is furnished below:
i) The principal amount and the interest due thereon
(Rs. in Lakhs)
86
remaining unpaid to any supplier as at 31st March
2010:
ii) The amount of interest paid by the Company along
with the amounts of the payment made to the
supplier beyond the appointed day during the year
ending 31st March 2010:
iii) The amount of interest due and payable for the period
of delay in making payment (which have been paid
but beyond the appointed day during the year) but
without adding the interest specifed under the Act:
Rs. 0.17 (Rs. 1.59)
iv) The amount of interest accrued and remaining unpaid
at the end of the year ending 31st March 2010 :
Rs. 2.84 (Rs. 2.26)
v) The amount of further interest remaining due and
payable even in the succeeding years, untl such date
when the interest dues as above are actually paid to
the small enterprise, for the purpose of disallowance
as a deductble expenditure under secton 23 of
MSMED Act: Rs. 2.50 (Rs. 2.10)
The informaton has been given in respect of such suppliers
to the extent they could be identfed as Micro & Small
Enterprises on the basis of informaton available with the
Company.
11. The following disclosure is made as per AS-7 (Accountng
for Constructon Contracts) in respect of accountng policy
3i(c) relatng to revenue recogniton on contracts by Parent
Company:
a) Contract revenue recognised during the year Rs. Nil
(Rs. 1,908.50)
b) No contract revenue is recognised during the current
year. Percentage of completon method was used to
determine the contract revenue recognised in the
previous years. Rato of the actual cost incurred on the
contracts upto 31.03.2009 to the estmated total cost
of the contracts, was used to determine the stage of
completon.
c) Aggregate amount of cost incurred: Rs. 43,009.84
(Rs. 70,613.40)
d) Recognised proft upto 31.3.2010 (net of provision for
contngency): Rs. 2,817.66
(Rs. 15,829.10)
e) Amount of advances received and outstanding as at 31.
3.2010: Rs. 48.85
(Rs. 48.88)
f) The amount of retenton: Rs. 1,404.70
(Rs. 8,111.26)
12. As per the provisions of revised Accountng Standard 15, the
following informaton is disclosed in respect of employee
benefts:
Gratuity:
Partculars
Consolidated
2009-10 2008-09
Present Value of Obligaton (PVO)
as at the beginning of the year
35,230.33 24,105.61
Interest Cost 2,716.33 1,731.21
Actuarial (gain) / loss 3,521.67 1,910.58
Benefts paid (2,556.32) (2,070.04)
end of the period
41,707.78 35,230.33
24,657.24 23,849.81
Contributons 10,563.48 855.80
Beneft paid (2,554.91) (2,070.04)
(Rs. in Lakhs)
87
Partculars
Consolidated
2009-10 2008-09
Actuarial gain / (loss) on Plan Assets 3,075.88 (236.76)
Fair Value of Plan Assets at the end
of the period
38,543.55 24,657.23
Excess of Obligaton over Plan Assets 3,164.23 10,573.10
iii) Expenses Recognised in the
Statement of Proft & Loss A / c
Interest Cost 2,716.33 1,731.21
Net Actuarial (gain) / loss recognised
in the period
445.78 2,147.33
of Proft & Loss [excluding Rs. 1,050.75
(Rs. 1,752.73) in respect of retred
employees which has been provided
on actual basis]
3,156.02 11,172.89
Actual Return on Plan Assets 7.5% / 8% /
9.78%
7.5% / 8% /
9.72%
iv) Amounts recognised in Balance
Sheet:
end of the period
41,707.78 35,230.33
of the period
38,543.55 24,657.24
Funded Status (3,148.42) (10,541.86)
Unrecognised Actuarial (gains) /
losses
- -
[excluding Rs. 1,050.75 (Rs. 1,752.73)
in respect of retred employees
which has been provided on actual
basis & afer considering payments
to the Trust during the year]
3,164.23 10,573.09
v) Category of Assets as at
March 31, 2010
State Govt. Securites 14.30% 23.94%
Govt. of India Securites 2.77% 9.14%
Partculars
Consolidated
2009-10 2008-09
Special Deposit 0.61% 0.97%
Investment with Insurer
59.33% /
100%
20.31% /
100%
vi) Principal Assumptons:
Discountng rate 8% / 8.25% /
8.45%
6.25% / 7.50% /
8%
Salary escalaton rate 5% / 7.5% /
8%
5% / 6.25% /
8%
Expected rate of Return on Plan
Assets
7.50% / 8% /
9.78%
7.50% / 8% /
9.72%
BEL Retred Employees Contributory Health Scheme (BERECHS):
Partculars
Consolidated
2009-10 2008-09
Present Value of Obligaton (PVO) as
at the beginning of the year
11,383.04 10,535.00
Interest Cost 878.45 767.26
Actuarial (gain) / Loss 773.53 46.65
Benefts paid (804.88) (609.74)
end of the period
12,963.40 11,383.04
- -
Contributons 804.88 609.74
Beneft paid (804.88) (609.74)
Actuarial gain / (loss) - -
of the period
- -
(Rs. in Lakhs)
88
Partculars
Consolidated
2009-10 2008-09
Statement of Proft & Loss

Interest on Defned beneft
obligaton
878.45 767.26
Net Actuarial (gain) / loss recognised
in the period
773.53 46.65
Expenses Recognised in the
2,385.24 1,457.78
Add : Amortsaton of Inital Actuarial
Liability towards existng employees
(valued on 31.03.2004) over 14 years
333.85 333.85
(Expenses: Rs. 804.89, Provisions:
Rs. 1,914.20)
2,719.09 1,791.63
iv) Principal Assumptons :
Rate of increase in compensaton
level
7.50% 6.25%
Health care costs escalaton rate 6.00% 6.00%
Atriton Rate 1.50% 2.00%
v) Amounts recognised in Balance
Sheet:

end of the period
12,963.40 11,383.04
of the period
- -
Funded Status (12,963.40) (11,383.04)
Unrecognised Actuarial
(gains) / losses
- -
(as per actuarial valuaton)
12,963.40 11,383.04
Less: Inital actuarial Liability towards
existng employees (valued on
31.3.2004) Amortsed over 14 years
2,972.56 2,972.56
Partculars
Consolidated
2009-10 2008-09
Add : Amortsaton of above inital
actuarial liability tll 2009-10
2,336.92 2,003.07
Liability recognised in Balance Sheet 12,327.76 10,413.55
vi) Efect of a one percentage point
increase in assumed health care cost

42.63 33.88
Efect on defned beneft obligaton 324.08 284.57
vii) Efect of a one percentage point
decrease in assumed health care
cost trend rates on the aggregate
of the service cost and interest cost
and defned beneft obligaton

(42.41) 33.67
Efect on defned beneft obligaton (323.35) (284.01)
Long Term Compensated Absence Scheme:
Partculars
Consolidated
2009-10 2008-09
of Proft & Loss A / c
5,095.21 4,476.25
i) Principal Assumptons:
Discountng Rate
8% / 8.25% /
8.45%
6.25%
7.50% / 8%

Rate of increase in compensaton
level
5% / 7.55% /
8%
5% / 6.25% /
8%
ii)
Amounts recognised in Balance
Sheet:

Liability recognised in Balance
Sheet (as per actuarial valuaton)
16,672.53 13,938.39
Provident Fund Contributons:
The Parent Company has separate Trusts for Provident Fund.
During the year the Parent Company has recognised an amount of
Rs. 5,633.16 (Rs. 4,570.20) towards contributon to Employees
(Rs. in Lakhs)
89
Provident Fund and Pension Schemes in the Proft and Loss
Account. The guidance on implementng AS 15 (Revised) issued
by the Insttute of Chartered Accountants of India states that
provident funds setup by Employers that guarantee a specifed
rate of return and which require interest shortalls to be met by the
employer would be defned benefts plans in accordance with the
requirements of paragraph 26(b) of AS 15 and actuarially valued.
Pursuant to the Guidance Note, the Parent Company has
determined on the basis of Actuarial Valuaton carried out as at
31st March 2010 that there is no liability towards the interest
shortall on valuaton date under para 55 and 59 of AS 15 (R) (having
regard to terms of plan that there is no compulsion on the part
of the Trust to distribute any part of the surplus, if any, by way of
additonal interest on PF balances).
The following tables summarise the Disclosure Report provided by
the Actuary:
Partculars 2009-10 2008-09
Present Value of Obligaton as at
the beginning of the year
73,834.61 70,481.25
Interest Cost 5,060.33 4,750.58
Past Service Cost (Non vested
Benefts)
- -
Actuarial (gain) / Loss 2,092.02 (1,542.88)
Benefts paid (12,727.15) (14,280.35)
the end of the period
83,740.57 73,834.61
ii) Change in Fair Value of Plan
Assets:

82,664.65 75,203.16
Contributons 14,422.76 14,955.71
Beneft paid (12,727.15) (14,280.35)
Actuarial gain / (loss) on Plan
Assets
53.22 176.31
Partculars 2009-10 2008-09
of the period
91,720.82 82,664.65

Interest Cost 5,060.33 4,750.58
Net Actuarial (gain) / loss
recognised in the period
2,038.80 (1,719.19)
Past Service Cost (Non vested
Benefts)
- -
Expenses Recognised in the
15,272.55 10,847.58
iv) Amounts recognised in Balance
Sheet :

the end of the period
83,740.57 73,834.61
of the period
91,720.82 82,664.65
Diference (7,980.25) (8,830.04)
Unrecognised Actuarial
(gains) / losses
- -
Liability recognised in Balance
Sheet
- -
v) Amount for the Current Period
Present Value of Obligaton 83,740.57 73,834.61
Plan Assets 91,720.82 82,664.65
Surplus / (Defcit) 7,113.25 8,830.04
liabilites - (Loss) / Gain
(1,572.56) 1,542.88
Assets - (Loss) / Gain
53.22 176.31
vi) Category of Assets as at
31st March 2010

Government of India Securites 25.60% 15.42%
(Rs. in Lakhs)
90
Partculars 2009-10 2008-09
State Government Securites 15.28% 20.98%
Equity shares of listed companies 0.00% 0.00%
Property 0.00% 0.00%
Special Deposit Scheme 0.34% 18.22%
Mutual Funds 0.00% 0.01%
Cash 0.00% 0.00%
Total 100.00% 100.00%
vii) Principal Assumptons:
Expected rate of Return on Plan
Assets
8.75% 8.75%
The Subsidiary (BELOP) and JVC (GE BE) are funding the Provident
Fund contributons with the Government Provident Funds.
13. Interest in Joint Venture Companies (JVCs):
Disclosure of interest in joint ventures, as per Accountng
Standard 27, is as under:
Name of Joint Ventures
Proportonate
Ownership of BEL
(a) GE BE Private Limited
(b) BEL Multtone Private Limited
Country of Incorporaton
The Companys share of contngent liabilites
in the JVCs is included under Note 14.
26%
49%
India
14. Contngent Liabilites (including share in JVCs):
Claims not acknowledged as debts Rs. 10,893.97 (Rs. 6,162.48)
Outstanding leters of Credit Rs. 22,673.05 (Rs. 33,718.42)
Others Rs. 397.30 (Rs. 291.81)
LD on unexecuted supplies Rs. 4,873.96 (Rs. 6,852.52)
15. The Parent Company (BEL) is engaged in manufacture and
supply of strategic electronic products primarily to Defence
Services and hence it would not be in public interest
for the Company to present segment informaton. For
similar reasons the Company has been granted exempton
from publicaton in the annual accounts of Quanttatve
Partculars required under Schedule VI to the Companies
Act, 1956. The SEBI has also granted exempton, for these
reasons, to the Company from publicaton of segment
informaton required under Accountng Standard 17 (AS 17)
in quarterly un-audited fnancial results. Hence, Segment
informaton required under AS 17 are not disclosed.
Such non-disclosure has no fnancial efect.
16. Related Party Transactons:
The related party transactons during the year with JVCs are
given below :
GE BE Private Limited (Equity Holding 26%); and
BEL Multtone Private Limited (Equity Holding 49%)
Natures of transactons with these Companies (on 100%
basis) are as follows:
Sl.
No.
Partculars
Joint Ventures
Companies
Grand
Total
GE BE
Private
Limited
BEL
Multtone
Pvt. Limited
1 Purchase of Goods -
(-)
-
(-)
-
(-)
2 Sale of Goods 1,048.37
(930.18)
-
(-)
1,048.37
(930.18)
3 Rendering Services
-
(0.12)
-
(-)
-
(0.12)
4 Receiving Services
1.41
(-)
-
(-)
1.41
(-)
5 Rent Received -
(-)
0.34
(0.32)
0.34
(0.32)
6 Dividend Income
on Investments
260.00
(260.00)
-
(-)
260.00
(260.00)
7 Creditors outstanding as on
31.3.2010
0.07
(0.07)
-
(-)
0.07
(0.07)
8 Debtors outstanding
as on 31.3.2010
323.98
(273.76)
-
(-)
323.98
(273.76)
9 Provision for doubtul
debtors as on 31.3.2010
17.88
(18.41)
-
(-)
17.88
(18.41)
10 Investment in
Equity as on 31.3.2010*
260.00
(260.00)
31.88 *
(31.88)
291.88
(291.88)
* A Provision of Rs. 29.90 towards diminuton in value of
investment in BEL Multtone Private Limited has been
made by BEL in 2007-08 and the JVC is in the process of
being wound up.
The Key Management Personnel are as follows:
(a) Shri A K Dat, Director, CMD from 1 / 5 / 2009
(b) Shri V V R Sastry, CMD upto 30 / 04 / 2009
(c) Shri P R K Hara Gopal, Director (Finance) upto
31 / 07 / 2009
91
H S Venkatesh
Partner
Place : Bangalore
Ashwani Kumar Dat
M G Raghuveer
Director (Finance)
C R Prakash
Company Secretary
(d) Shri M L.Shanmukh, Director (Human Resources)
(e) Shri H S Bhadoria Director (Bangalore Complex)
(f) Shri N K Sharma, Director (Marketng) upto
31 / 8 / 2009
(g) Shri M G Raghuveer, Director (Finance) from
1 / 8 / 2009
(h) Shri H N Ramakrishna, Director (Marketng) from
1 / 9 / 2009
(i) Shri I V Sarma, Director (R&D)
(j) Shri Anil Kumar, Director (OU) from 03 / 02 / 2010
(k) Shri Srikant Srinivasan, MD, GE BE Private Ltd.
The total salary including perquisites drawn by the above
key management personnel during the year 2009-10 are
Rs. 340.14 (Rs. 194.37) as detailed below:
Salary & Allowances including benefts Rs. 224.54 (Rs. 91.83)
Contributon to Provident Fund & Gratuity etc. Rs. 51.73 (Rs. 80.38)
Leased Accommodaton Rs. 43.01 (Rs. 17.95)
Others Rs. 20.86 (Rs. 4.21)
17. Break up of Net Deferred Tax Assets is given below:
2009-10 2008-09
Deferred Tax Assets:
Provision against Debts, Inventory,
Performance Guarantee & Leave
Encashment etc.
19,925.19 18,882.40
Technical Know-how Fee 302.55 228.35
20,227.74 19,110.75
Deferred Tax Liability:
Depreciaton 4,395.37 4,307.53
4,395.37 4,307.53
Net Deferred Tax Assets 15,832.37 14,803.22
18. Disclosure as required under AS 29 - Provisions, Contngent
Liabilites and Contngent Assets:
Provision for warranty is made towards meetng the
expenditure on account of Performance Guarantee and
warrantes in accordance with the Accountng Policy. The
details of the same are given below:
Opening
Balance
as on
01 / 04 / 2009
Additonal
Provisions
made
during the
year
Amounts
used
during the
year*
Unused
Amounts
reversed
during the
year
Closing
Balance
as on
31 / 03 / 2010
3,860.09
(3,889.64)
1,468.60
(1,180.48)
487.75
(529.89)
717.58
(680.14)
4,123.36
(3,860.09)
* includes Rs. Nil (Rs. 40.19) debited to opening provision.
19. The Parent, Subsidiary and JVCs do not have any derivatve
instruments. One of the JVC viz. GE BE Pvt. Ltd., has
taken forward contracts to mitgate its risks associated
with foreign currency fuctuatons in respect of highly
probable forecasted transactons. The JVC does not enter
into any forward contract which is intended for trading or
speculatve purposes.
20. Previous year fgures represent the corresponding fgures
as appearing in the Consolidated Financial Statements
of the Company as on 31.03.2009, which have been
regrouped / reclassifed wherever necessary. Figures for
the current year of the group have been regrouped /
reclassifed wherever necessary to conform to the Parent
Companys presentaton. Figures in brackets relate to
previous year.
92
Consolidated Cash Flow Statement for the year ended 31st March 2010
(Rs in Lakhs)
Partculars 2009-10 2008-09
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Proft Before Tax as per Proft & Loss Account 107,073.31 110,979.37
Adjustments for:
Depreciaton (incl. prior period items) 12,229.29 11,284.36
Income from Investments -17,575.21 -16,814.51
Provision for Employee Benefts 519.37 15,750.32
Provision for Contngencies towards Long-term Contract -3,358.52 148.12
Provision for Performance Guarantee 263.27 -29.55
Interest Expense 58.47 1,082.76
Proft on Sale of Fixed Assets -343.30 -108.34
Transfer from Government Grants -976.22 -333.19
ESOP amortsaton - GE BE Pvt. Ltd. 0.93 0.92
Operatng Proft Before Working Capital Changes 97,891.39 121,960.26
Adjustments for:
Trade and Other Receivables 17,442.85 -23,225.25
Inventories -2,634.43 -107,368.33
Trade Payables & Advances 28,143.55 86,696.08
Cash Generated from Operatons 140,843.36 78,062.76
Receipt of Grants 661.99 645.75
Direct Taxes Paid (Net) -36,135.93 -37,799.69
Cash Flow Before Extraordinary Items 105,369.42 40,908.82
Net Cash from Operatng Actvites 105,369.42 40,908.82
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets -12,751.67 -17,714.49
Sale of Fixed Assets 366.27 133.37
Bank Deposits -128,255.62 3,734.42
Interest Income 17,575.21 16,814.51
Net Cash from / (used) in Investng Actvites -123,065.81 2,967.81
C. CASH FLOW FROM FINANCING ACTIVITIES:
Increase / Decrease in Long-term Loan Borrowings -55.97 -24.16
Increase / Decrease in Short-term Borrowings - -
Dividends Paid (including Dividend Tax) -17,548.79 -19,416.82
Interest Expense -58.47 -1,082.76
Net Cash used in Financing Actvites -17,663.23 -20,523.74
Net Increase / Decrease in Cash and Cash Equivalents (A+B+C) -35,359.62 23,352.89
Cash and Cash Equivalents at the beginning of the year 127,774.01 104,421.12
Cash and Cash Equivalents at the end of the year 92,414.39 127,774.01
Notes:
1. The above statement has been prepared under indirect method as per the Accountng Standard on Cash Flow Statement (AS - 3)
2. Additons to Fixed Assets are stated inclusive of movements of Capital Work-in-Progress between the beginning and end of the period and treated as
Investng Actvites.
3. Cash and Cash Equivalents consists of Cash on hand, Balances with Banks and Deposits having a maturity period of three months or less from the date
of deposit. Cash and Bank Balance shown in Schedule No. 11 is inclusive of Rs. 266,255.26 (Rs. 137,999.64) being the deposits having an original maturity
period of more than three months.
H S Venkatesh
Partner
Place : Bangalore
Ashwani Kumar Dat
M G Raghuveer
Director (Finance)
C R Prakash
Company Secretary

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