About Bharat Electronics Ltd

Bharat Electronics Limited, established in 1954, is a Navratna Public Sector Undertaking. The Company possess expertise in a spectrum of activities, encompassing the design, development, manufacturing, supply and life cycle support of strategic electronic products and systems. It hold a prominent position in the Indian Defence segment, and are making inroads into the civilian segments while expanding their defence operations into the international markets. The Company is engaged in manufacture and supply of strategic electronic products primarily to Defense Services. The company exported a range of products and sub-assemblies exported includes LYNX II, radar warning receivers, composite communication system, night vision devices, versatile communication system (VCS), IFF Interrogator, LRF, X-Ray tube, radar finger printing system, ESM system, V/ultra high frequency (UHF) search receivers, shelters, printed circuit board (PCB) assembly, cable harness, components and mechanical assemblies. Bharat Electronics Ltd was set up at Bangalore, India, by the Government of India under the Ministry of Defence to meet the specialized electronic needs of the Indian defence services. Over the years, then company has grown into a multi-product, multi-technology, multi-unit company serving the needs of customers in diverse fields in India and abroad. The company started with the manufacture of few communication equipment in the year 1956. They went on to produce Receiving Valves in the year 1961, Germanium Semiconductors in the year 1962 and Radio Transmitters for AIR in the year 1964. In the year 1966, the company set up a Radar manufacturing facility for the Army and in-house R&D. In the year 1967, they started manufacture of Transmitting Tubes, Silicon Devices and Integrated Circuits. In the year 1968, they established the PCB manufacturing facility. In the year 1970, the company started manufacture of Black & White TV Picture Tube, X-ray Tube and Microwave Tubes. In the year 1971, they set up facilities for manufacture of Integrated Circuits and Hybrid Micro Circuits. In the year 1972, they started manufacturing TV Transmitters for Doordarshan. In the year 1973, they started manufacture of Frigate Radars for the Navy. Under the government's policy of decentralization and due to strategic reasons, the company ventured to set up new Units at various places. In the year 1974, the company set up their second unit at Ghaziabad to manufacture Radars and Tropo communication equipment for the Indian Air Force. In the year 1979, they established their third Unit at Pune to manufacture Image Converter and Image Intensifier Tubes. In the year 1980, the company's first overseas office was set up at New York for procurement of components and materials. In the year 1981, the company set up a manufacturing facility for Magnesium Manganese Dioxide batteries at the Pune Unit. In the year 1982, they set up the Space Electronic Division at Bangalore to support the satellite programme. In the year 1983, the company took over an ailing Andhra Scientific Company (ASCO) as the fourth manufacturing Unit at Machilipatnam. In the year 1985, the company set up their fifth Unit in Chennai for supply of Tank Electronics, with proximity to HVF, Avadi. Also, they set up their sixth Unit at Panchkula to manufacture Military Communication equipment. In the year 1985, the company started manufacturing on a large scale Low Power TV Transmitters and TVROs for the expansion of Doordarshan's coverage. In the year 1986, the company set up their seventh Unit at Kotdwara to manufacture Switching Equipment. They set up their eighth Unit to manufacture TV Glass Shell at Taloja (Navi Mumbai). Also, they set up their ninth Unit at Hyderabad to manufacture Electronic Warfare Equipment. In the year 1987, the company set up a separate Naval Equipment Division at Bangalore to give greater focus to Naval projects. In the year 1988, they established first Central Research Laboratory at Bangalore to focus on futuristic R&D. In the year 1989, the company started the manufacture of Telecom Switching and Transmission Systems. Also, they set up the Mass Manufacturing Facility in Bangalore and the manufacture of the first batch of 75,000 Electronic Voting Machines. In the year 1990, the company entered an agreement Delft of Holland for setting up first joint venture company, BE DELFT. Later, the joint venture company became a subsidiary of the company with the exit of the foreign partner and was renamed BEL Optronic Devices Ltd. In the year 1992, the company established their second Central Research Laboratory at Ghaziabad. Also, the company made their first disinvestment (20%) and their shares were listed on the Bangalore and Mumbai Stock Exchanges. During the year 1993-94, the company's Units obtained ISO 9000 certification. In the year 1994, the second disinvestment (4.14%) took place. In the year 1997, GE BEL, the joint venture company with GE, USA, was formed. In the year 1998, the company set up their second overseas office at Singapore to source components from South East Asia. In the year 2000, the company's shares were listed in the National Stock Exchange. In the year 2002, the company became the first defence PSU to get operational Mini Ratna Category I status. In June 16, 2007, the company inaugurated the state-of-the-art, new building of the Central Research Laboratory of the company at Ghaziabad. They also inaugurated the Near Field Antenna Development and Test Centre at BEL's Ghaziabad Unit. In June 22, 2007, the company was conferred the prestigious Navratna status based on their consistent performance. The company has bagged the IETE Corporate Award in August of the year 2007 for performance excellence in the field of software development. During the year 2007-08, the company executed important orders which include STARS V Frequency Hopping, a VHF Manpack Transreceiver; Advanced Land Navigation System for Tanks, a Command & Control System, Command Information and Decision Support System, Installation of LINK II System on board Ship, Gunners Main Sight, EW Systems, Flycatcher Radar, Surveillance Radar Element, Integrated Observation Equipment, Hand Held Thermal Imagers, Central Acquisition Radar, Passive Night Vision Device (both monocular and binocular), and Doppler Weather Radar for prediction of meteorological data. These equipments have been supplied to a wide range of Customers including the Army, Navy, Air Force, Paramilitary forces, Indian Meteorological Department and others. The company set up a new DF Range test facility at the Hyderabad Unit for testing, calibration and evaluation of ESM Systems. During the year, the company signed MoUs with aerospace majors, Lockheed Martin &Boeing and global defence companies EADS & Northrop Grumman and other companies like Raytheon, Honeywell to exploit opportunities arising out of offsets. They signed an MoU with Elisra, Israel, for working on various airborne electronic warfare programmes for the Indian defence. Also, they signed an MoU with IAI-Malat for working in the field of Unmanned Aerial Vehicles. The company signed an term sheet with Rafael, Israel, which is expected to lead to the formation of a joint venture, for missile electronics and guidance technologies. Also, they signed an MoU with Elbit Systems, Israel for co-operation in the area of Wireless Local Area Network. During the year 2008-09, the company signed an MoU with Bharat Heavy Electricals Ltd, to explore formation of a Joint Venture for solar photovoltaic business. They signed an MoU with Boeing to jointly develop an analysis and experimentation centre in India to offer customers the ability to make better-informed decisions in modernising the Country's defence forces. They signed an MoU signed with Astra Microwave Products Ltd, for setting up of a Joint Venture for microwave components. They signed an MoU with Selex Galileo for collaboration on Electronic Warfare programmes. Also, they company was selected by Northrop Grumman Corporation for the manufacture of components for Fire Control Radar for its Fighter Aircraft programme. During the year 2009-10, the company introduced some new products namely, 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. The company set up a state-of-the-art integrated manufacturing facility for assembly, inspection and testing of Digital Flight Control Computer (DFCC), all under one roof. During the year 2010-11, the company supplied some of the important equipment / systems to customers, which includes 3-D Central Acquisition Radar (Rohini), Surveillance Radar Element, Artillery Combat Command Control System, Battle Field Surveillance Radar, L-Band Surveillance Radar, Fire Control Systems, Shipborne Electronic Warfare System, Integrated Communication Network System for ships, Mobile Radar band Electronic Intelligence System, Mobile Communication Terminal, Handheld UHF Radios, Secure Communication Network, Passive Night Vision Weapon Sight and Doppler Weather Radar. In December 2010, the company handed over four numbers of India's first wholly indigenous Nuclear, Biological and Chemical (NBC) Recce Vehicles, designed and developed by DRDO and integrated with NBC instruments at BEL's Pune Unit to Indian Army. The NBC Recce Vehicle surveys, detects, identifies and marks areas of radiological and chemical contamination. In December 24, 2010, the company inaugurated a modern D&E facility at BEL's Hyderabad Unit, which is equipped with Embedded Systems Lab, Software Development Lab, Communication Systems and Integration Labs, Video Conferencing, etc. In February 8, 2011, the company inaugurated the company's Product Support Centre at Kalamassery in Kochi, Kerala to provide waterfront support for the Southern Naval Command and to support outsourcing of Naval system projects to BEL's outsourcing partner, KELTRON. The company is in the process of signing a Technology Collaboration Agreement (TCA) with Optelian International Corporation for establishing a long-term partnership between the two Companies for the manufacture and design of optical networking systems in India. BEL expects to address a business of about Rs 60,000 lakh in the next five years from this initiative. The company is in discussions with a reputed foreign OEM for forming an Indian Joint Venture in the area of civilian radars & select defence radars. The business plan for setting up a JVC with BHEL for manufacture of Solar PV wafers, cells and modules was finalized. The company is working on establishing a Company for the design, development and manufacture of RF and Microwave components and subsystems. In 2012, Bharat Electronics Limited India (BEL) signed an MoU with Israel Aerospace Industries (IAI) for cooperation on future Long Range Surface to Air Missile (LRSAM) Ship-defence Systems'. In 2014, the company has decided to form a Joint Venture Company (JVC) with Thales Air Systems SA, France and Thales India in Radar Business Area. In 2015, The Company has allotted the Bonus Shares to its shareholders in the Ratio of 2:1. On 31 May 2016, Bharat Electronics announced that it will inaugurate an 8.4 MW wind energy power plant at Hanumanthappa site, Harappanahalli, in the Davangere district of Karnataka for captive consumption of energy for its factory at Bengaluru on 2 June 2016. The Board of Directors of Bharat Electronics at its meeting held on 5 August 2016 approved the proposal to buyback of not exceeding 1.66 crore equity shares of the company, representing 6.93% of the total number of equity shares in the paid-up share capital of the company at a price of Rs 1,305 per share payable in cash for an aggregate consideration not exceeding Rs 2171.15 crore, which is not exceeding 25% of the aggregate of the fully paid-up share capital and free reserves as per audited accounts of the company for the financial year ended 31 March 2016 from all the equity shareholders of the company, as on the record date, on a proportionate basis through the Tender Offer route. The Board of Directors noted the intention of the Promoter of the Company to participate in the proposed Buyback. On 17 September 2016, Bharat Electronics announced that foundation stone for the company's Advanced Night Vision Products factory at Nimmaluru, Krishna district, Andhra Pradesh will be laid on 19 September 2016. It will be the largest such facility in the country once it is commissioned, covering an area of over 50 acres. The Advanced Night Vision Products factory will enable Bharat Electronics to expand its Electro-Optics business and carry out manufacturing and integration for the ongoing and upcoming projects. The Board of Directors of Bharat Electronics at its meeting held on27 January 2017 approved sub-division of existing one equity share of Rs 10 each face value fully paid-up into 10 number of equity shares of Re 1 each face value. On 14 February 2017, Bharat Electronics Ltd (BEL) unveiled a new Weapon Control system - Remote Controlled Weapon Station (RCWS)/Air Defence Weapon Station (ADWS) for 12.7 mm Gun of MBT Arjun Mk II battle tank, at Aero India 2017. The RCWS is an improvised version of the manually operated air defence gun. On 15 February 2017, Bharat Electronics announced that Elbit Systems Electro-Optics Elop Ltd (ELOP), Israel, has awarded the company an Offset Contract for the supply of 10 numbers of CoMPASS Systems for use in the Light Combat Helicopters (LCH) being manufactured by Hindustan Aeronautics Limited (HAL). BEL received the CoMPASS Offset Contract at Aero India 2017, Bengaluru. BEL has entered into a Technical Collaboration Agreement with ELOP for the joint production and D-Level maintenance of Compact Multi-Purpose Advanced Stabilised System (CoMPASS, the trade name for EO/IR payload) for the helicopter programmes. BEL has absorbed transfer of technology (ToT) for production and maintenance of CoMPASS in India. The CoMPASS is a day-and-night surveillance system that includes a colour TV daylight camera, 3rd Generation 3-5 f m Forward Looking Infrared (FLIR) sensor, Laser Target Designator and Range Finder (LTDRF) and automatic tracking capabilities, as well as command and control capabilities. On 22 and 23 February 2017, the Government of India divested 5% stake in Bharat Electronics through Offer for Sale via the stock exchanges mechanism. Post the stake-sale, Government of India's stake in the company declined to 69.41% from 74.41%. Bharat Electronics Limited (BEL) and Larsen & Toubro signed an MoU on 11 April 2018 at Defexpo 2018 in Chennai to share their expertise in design, development, engineering and manufacturing to develop and produce products and systems to meet the requirement of the defence services as well as for export markets. BEL and L&T have agreed to explore and address defence products/systems for the Indian Defence Services as well as export opportunities. BEL has expertise in design, development, engineering, manufacture of Radar & Weapon Systems, NCS and Communications systems, Electronic Warfare & Avionics, Naval Systems, Electro-optics products, Tank Electronics & Gun Systems, Satcom systems, Strategic Components and Civilian products, while L&T has expertise in design, engineering and manufacture of Defence systems, Platforms and Weapon delivery, Armoured platforms and Fire control systems, Military Communication, Naval Equipment, Warships & Submarines. The MoU sets to define the roles and responsibilities of both the companies to cooperate and work in partnership mode for select programmes and thus give a boost to indigenous defence production. This collaboration will support the Make in India mission. On 11 April 2018, Bharat Electronics launched eight new products at Defexpo 2018 in Chennai, including 100 Mbps Radio, Secure Military Wireless Local Area Network, Multi-Function Hand Held Thermal Imager, Long Range Surveillance System, Chemical Agent Monitor (CAM), Multi-Purpose Reflex Weapon Sight, Light Weight Composite Shelter and Mine Field Recording System. On 12 April 2018 at DefExpo 2018 in Chennai, Bharat Electronics Limited (BEL) and Mahindra Defence Systems Limited committed to a long-term partnership through a MoU, to jointly address emerging opportunities in the domestic market under the policy initiatives of the Government of India, like Make in India and the Export Promotion Policy of the Ministry of Defence to target the export market. BEL has the expertise in design, development, engineering, manufacture of Radar & Weapon Systems, NCS and Communications systems, Electronic Warfare & Avionics, Naval Systems, Electro-optics products, Tank Electronics & Gun Systems, Satcom systems, Strategic Components and select Civilian products, while Mahindra Defence has the expertise in manufacture, maintenance of Defence equipment, Light Military Vehicle, Armoured Vehicles, Aerospace/Aviation Platforms, Simulators, Electronics, Airborne Equipment, Naval Equipment and materials for Defence sector. During the year 2018-19,the Company has spent Rs 67,359 Lakhs as part of CAPEX investment towards modernization of plant & machinery, test instruments, R&D investments, infrastructure up-gradation etc. During the year 2019-20, Company has spent Rs 51,297 Lakhs as part of CAPEX investment towards modernization of plant & machinery, test instruments, R&D investments, infrastructure up-gradation etc. During 2020-21, the Company commissioned major projects like Systems for Akash-NG, Compact Tracking Radar for Lynx U2 Gun Fire Control System, technology modules for Multi Target Tracking Radar, Integrated Air Command and Control System (IACCS) Batch 2, Variants of Software Defined Radios, Low profile Ku Band Satellite communication on the move (SOTM) mobile terminal, Combat Management System for P-15B class of ships, Electronic Counter Measure (ECM) Jammer MK-III and Digital Beam Former for 3D E/F Band Airport Surveillance Radar (ASR). During FY 2020-21, BEL-THALES Systems Limited (BTSL), a subsidiary, was formed for design, development, marketing, supply and support of civilian and select Defence radars for Indian and global markets. During FY 2021-22, Company commissioned major projects such as, Akash-NG System, Record & Replay Operations, Single Combat Vehicle, Compact GFCS (LYNX U3 GFCS), Multi Target Tracking Radar, BMP EO Upgrade, AGMS and CPS for MBT Arjun, Spotterscope, Space Situational Awareness, IAF Order for 7 Sqn of Akash Missile System (AMS), Revathi Stabilized Platform, CMS16A, GaAs based C-band MMICs, Uncooled TI weapon sights for MMG and Assault Rifle, Range Extension Kit for General Purpose Bombs, Command Post for MRSAM-Army, Active Range Gating Camera for long range surveillance application, Development of HHT for BEST Buses, Gunner TI sight for T-90, Laser Dazzler, D4 System, ToT for Fibre Optic Sensor Package and IPSS Pathankot. During FY 2021-22, the Company introduced major products/systems including, SDR Variants, Improved Version of Data link system for Ship (Link2-MOD3), Sensors for VSHORAD, IFF Mk XII for MRSAM, Navigational Complex System, IIR Seeker for HELINA/NAG/PROSPINA, Gunner TI Sight for T-90, Spotter scope with Digital Camera, Continuous Zoom Lens 20-860 mm, Image Stabilisation for EO's, MultiFunction Radar-VLSRSAM, Electrical Power System (EPS) for Weapon Control (P15B), Hand Held Laser Dazzler, ACCS for 1135.6/ ACCS for SVL etc. It launched new products like Compact Indoor Robotic Vehicle and Oxygen Concentrator. In FY 2022-23, the Company acquired technology from DRDO for high capacity Lithium-ion cells for strategic applications and set up a production facility. BEL-developed Air Traffic Management Automation System was installed at Bhubaneswar Airport. It established BELIndian Navy Incubation Cell for Artificial Intelligence (INICAI) and signed MoU with IISc Bengaluru on AI-ML for which the projects have been initiated. A Software Development Centre was opened at Visakhapatnam. During FY 2022-23, the Company completed projects in technology areas like Missile Systems, Radars, Electronic Warfare, Avionics, Military Communication, Naval Systems, Sonars, C4I Systems, Electro-optics and Laser, Tank Electronics, Gun Upgrades, Civilian Equipment, Homeland Security, Medical Electronics, and Components.

Bharat Electronics Ltd Chairman Speech

Growth powered by technology and R&D excellence

Dear Shareholders,

It is with immense pleasure that I address you as the Chairman and Managing Director and share the Company's achievements and financial highlights during the past year.

FY 2022-23 has been an exceptional year for your Company. We grew on all fronts and emerged stronger with all your support, despite the geo-political crisis and global chip shortages. We continued to prioritise R&D, quality, technology and infrastructure modernisation, sustainability and excellence in operations which positions us on a stronger footing.

The year also saw us creating value for all stakeholders. I am pleased to share that BEL has achieved a market capitalisation of ` 71,307 Crore as on 31 March 2023. This is a testament to our commitment of adequately rewarding our shareholders. Great progress was also made with regards to extending support to the communities and ensuring sustainable operations.

I take this opportunity to share with you the performance highlights during the past year and the future outlook for the company.

Setting New Benchmarks in Performance

In FY 2022-23, BEL achieved a turnover of ` 17,333 Crore as against ` 15,044 Crore in FY 2021-22, thereby registering a growth of 15.22%. The growth was driven by strong performances of both domestic and export business, across both defence and non-defence segments. Defence continued to be our mainstay, contributing to 87% of revenue in FY 2022-23 as against 90% in FY 2021-22, with the balance 13% coming from the non-defence segment.

Our export sales increased about 45% to USD 48.33 Million; we mainly exported to countries like France, USA, Spain, Germany, Mauritius, Switzerland, Vietnam, Sri Lanka, etc. The major products/systems exported include Sonar, Coastal System, Radar Warning Receiver, Missile Approach Warning System, T/R Modules, Communication Equipment, Low Band Receiver LRUs, Medical Technical Parts, Cable Looms, Sonar Spares, Software for Integration of Radar, Radar Spares, EOS CoMPASS, etc.

The Profit after Tax grew by 28% to ` 3,007 Crore in FY 2022-as against ` 2,349 Crore in FY 2021-22. Our net worth is now stronger at ` 13,582 Crore as against ` 11,984 Crore in the previous year. Turnover per employee has increased from

` 1.69 Crore in FY 2021-22 to ` 1.96 Crore in FY 2022-23.

We continued the momentum in order acquisition by booking an inflow of ` 20,344 Crore during FY 2022-23. Order book position now stands at ` 60,690 Crore as on 01 April 2023, giving stable revenue visibility for the next few years. We anticipate good order inflow in the next couple of years.

Progressing the path of innovation

Innovation is a key differentiator for us. During the year, we continued investments in advanced technologies to deliver unique products and solutions to the customers, fulfilling our commitment to increase indigenised content and add value to our offerings. R&D investment as a percentage of turnover during the year was 6.28%, helping us to achieve 75% of our turnover from indigenous products.

Your Company has always been at the forefront in continuously developing innovative and quality products for customers. Some of the major products/systems introduced during FY 2022-23 include Coastal Surveillance System Ph.-II, SDR Variants, Combat Management System for ships, Voice Communication & Control Systems for C4I project, 4.8M Ku band Antenna, Gun Fire Control System (GFCS), Antenna System for Flight Level Radar MK-II, Navigation Complex System, 4KW GaN Transmitter, 0.4M Ku band Satcom on the Move (SoTM) System, Night Sight for 7.62mm LMG, Indigenous Goniometer, IFF MK XII(S), Super SCADA for Metro, etc.

Our unwavering dedication to R&D and strengthening of intellectual property has yielded remarkable results. In_FY 2022-23, we filed 242 IPRs including 121 patent applications in domains of Communications, Artificial

Intelligence, Radars, Antennae, Embedded Systems, etc. We have been granted 22 patents, taking our total to 46. Furthermore, our scientists and R&D engineers published 79 technical papers in prestigious national and international journals, seminars and conferences.

Fortifying competencies, unleashing potential

Your Company continues to maintain a strong commitment to future readiness by investing for the future. This includes creating infrastructure and test facilities for various projects, establishing a Software Development Centre in Visakhapatnam to develop and access competencies from Tier-2 city. Additionally, we also expanded the manufacturing and storage facility of Ballot Unit & Voter-Verified Paper Audit Trail (VVPAT) for EVMs at Bengaluru.

To foster synergistic R&D efforts and propel innovation journey, we have empanelled 309 partners. This includes 39 R&D solution providers, 198 design service providers, 40 consultants and 39 production service providers.

In recognition of our commitment to quality and sustainability, we are proud to have received 19 AS-9100 D standard certifications and 22 Green Channel Certificates for our products.

Laurels and Accolades

It gives us great pleasure to inform that our persistent endeavours have been duly recognised and rewarded across various prestigious platforms. Our accolades span corporate excellence, governance, R&D, software development and sustainability domains, and are a testament to our continued excellence and improvement across all facets of operations.

Some of the noteworthy awards being:

The Economic Times - Iconic Brand of India Award - 2022

International Aerospace & Defence Award for Excellence in Innovation, Design, Technology or R&D

Twin honour of CII EXIM Bank Business Excellence Award (2022) and the Jury's Commendation for Role Model Organisation for BEL's Ghaziabad Unit Winner of Raksha Mantri's Export Raksha Niryat Ratna Award 2021-22 among Large Companies ICC (Indian Chamber of Commerce) PSE Excellence Awards for the Company of the Year Quantic Technology Excellence Award 2022 for Best Security, Defence, or Law Enforcement IT Project Urban Infra Business Leadership Award 2022 for BEL's contributions to the transformation of Metro and Rail commutation in India, aligned with the Government's Make in India initiative Innovative CFO Award at the 2^nd edition of The Business Leadership Awards for Director (Finance) & CFO

Most Iconic Organisation Award for BEL's Panchkula Unit by the World Manufacturing Congress

Innovative Digital Smart City Project Award for Chandigarh Smart City to BEL's Panchkula Unit from Indian Institute of Material Management, Chandigarh These achievements inspire us and fuel our ambition to continue the pursuit of excellence and conquer new summits.

Foreseeable Future

As we look ahead, we have a lot of promising opportunities as well as challenges.

BEL being a key player in defence with multiple existing competencies and strong R&D is well-placed. We are vigorously responding to many ‘Make-II' projects under Defence Acquisition Policy (DAP) 2020 and target to increase participation. We are also emphasising on progressing towards enhancing indigenous development of Sub-Systems, Systems and Services for which capabilities and competencies are being built. This includes investing in infrastructure creation and modernisation, skill development and outsourcing to Indian industries, especially MSMEs.

We will also continue to closely work with DRDO labs, research and premier academic institutions and niche technology players for developing new products and systems in emerging technologies. Further, considering increased private participation, we are increasingly interacting with the Indian defence industry towards building long-term relationships. In our non-defence business, we seek to continue building on our existing competencies as well as diversifying into new business areas.

We are continuously pursuing opportunities to expand business by capturing new customers in the existing and new markets. To give greater thrust to exports, we have plans to further expand the network of our marketing offices. The target is to increase business opportunities in South East Asia, Europe, Middle East, Africa and North and South America through incessant engagement with customers and collaborating with other Indian companies and local partners.

Our overarching goal is to maintain strategic electronics leadership. Towards this, we have established strategies and initiated actions to rise above competition and maintain a technological edge. We intend to do this by staying abreast with latest technologies and meet the changing requirements of customers with thrust on cost-effective and innovative solutions. Roadmaps have been drawn for future products, new technology areas, creation of IPRs and acquisition of key technologies. On the employee's front, we have solidified our reputation as a preferred employer with efforts around continuous learning, innovation, and empowerment.

In FY 2023-24, we target a healthy growth of 15-17% driven by both defence and non-defence businesses. We have several prestigious orders lined up and will be focussed on executing them on time. While the opportunities are many, we also anticipate challenges due to geopolitical situations, emerging new technologies, changing policies and regulatory landscapes, competition and evolving customer expectations. We will remain watchful and take necessary actions.

Contribution to Environmental, Social and Governance (ESG) Area

ESG and commitment to stakeholders' interests is a priority at BEL, guided by our value of ‘Endeavouring to fulfil social responsibilities'. It underpins our long-term success. We are making great strides towards reducing emissions, achieving water positivity and circular economy. A sharp focus is to reduce, reuse, recover and recycle through improvement in process and intend to build on them and create a greener future. Our community efforts focusses on health, nutrition, education, skill development and environment sustainability. A noteworthy initiative was the launch of ProGame, self-learning coding kit, designed to equip children with programming skills and logic development, particularly targeted at those without access to computers. 42,000 students benefited from it.

Your Company takes pride in constantly adopting and maintaining the highest standards of values and principles. Your Company has received ‘Nil' comments certificate from the C&AG for FY 2022-23. A detailed report on compliance of the guidelines on Corporate Governance can be read in Board's Report.

Acknowledgements

I extend my gratitude to all shareholders, esteemed customers and business associates for believing in us and partnering in our journey of value-creation. I thank my colleagues on the Board and the members of the Management Committee for their ongoing support and bringing in expertise to drive BEL's success. I am grateful to the Ministry of Defence and Defence Services for providing guidance, opportunities and having confidence in us. Employees have been our pillars of success in every sense, helping BEL reach newer heights and enabling us to deliver on the expectation of customers and all stakeholders. We look ahead to better times and seek the sustained support of all stakeholders to unlock greater value creation.

I remain dedicated to our continued success and eagerly look forward to working with each one of you to take BEL to greater heights.

Thank you for the continuous support to Bharat Electronics Limited

With Best Wishes,

Yours Sincerely,

Mr Bhanu Prakash Srivastava

Chairman and Managing Director (Additional Charge)

Bengaluru

1 August 2023

   

Bharat Electronics Ltd Directors Reports

To the Members,

Your Directors take pleasure in presenting this Integrated Annual Report and the Audited Financial Statements for the financial year ended 31 March 2023 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

Financial Results and Performance Highlights

Financial results and performance highlights of the Company are summarised below:

Particulars	2022-23	2021-22
Value of Production	17,73,082	15,32,064
Turnover	17,33,337	15,04,367
Profit Before Depreciation, Interest and	4,40,754	3,54,283
Tax
Finance Cost	1,479	485
Depreciation & Amortisation	40,787	38,018
Profit Before Tax	3,98,488	3,15,780
Provision for Tax	97,821	80,887
Profit After Tax	3,00,667	2,34,893
Other Comprehensive Income / (Loss)	(16,624)	(14,921)
Total Comprehensive Income	2,84,043	2,19,972
Dividend Paid	1,24,266	1,02,337
Tax on Dividend	-	-
Transfer to General Reserve	40,000	40,000
Other Equity (including Reserves &	12,85,101	11,74,060
Surplus)
Net Worth	13,58,199	11,98,426
Earnings Per Share (in `)	4.11	3.21
Book Value Per Share (in `)	18.58	16.39

Distribution of Value of Production for 2022-23 is given below:

Particulars	Amount	Percentage
Materials	10,20,629	57.56%
Employee Cost	2,29,773	12.96%
Other Expenses (Net)	83,405	4.70%
Depreciation & Amortisation	40,787	2.30%
Provision for Tax	97,821	5.52%
Profit After Tax	3,00,667	16.96%
Total	17,73,082	100.00%

The Company's turnover for the FY 2022-23 increased to ` 17,33,337 Lakhs from ` 15,04,367 Lakhs in 2021-22, registering a growth of 15.22%. The Profit After Tax (PAT) for the FY is ` 3,00,667 Lakhs as compared to ` 2,34,893 Lakhs in the previous year. Turnover from indigenously developed products was 75%. Contribution for Defence supplies was at 87% of the turnover in 2022-23 as compared to 90% in the previous year.

Dividend

In pursuant to Regulation 43A of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company formulated a Dividend Distribution Policy keeping in view the provisions of the SEBI (LODR) Regulations, 2015, the Companies Act, 2013, Guidelines issued by the SEBI, DPE, DIPAM, Ministry of Finance and other Guidelines to the extent applicable to the Company. The Policy is placed on the Company's website at -https://www.bel-india.in/ContentPage.aspx?MId=17&CId=5 27&LId=1&link=527

The Board of Directors has recommended a final dividend of

` 0.60/- per equity share (60%), amounting to ` 43,859 Lakhs for the year 2022-23. The first interim dividend of ` 0.60 per equity share (60%) and the second interim dividend of ` 0.60 per equity share (60%) have been paid to the shareholders for the financial year 2022-23. Thus, the total dividend for the year 2022-23 is ` 1.80/- per equity share (180%), amounting to ` 1,31,576 Lakhs.

Transfer to Reserves

An amount of ` 40,000 Lakhs has been transferred to General Reserves for the financial year 2022-23.

Share Capital

The Company's paid-up Equity Share Capital as on 31 March 2023 was ` 73,098 Lakhs and its Authorised Share Capital was ` 75,000 Lakhs. During FY 2022-23 the Authorised Share Capital of the Company has been increased from ` 25,000 Lakhs to ` 75,000 Lakhs.

During FY 2022-23, your Company issued bonus shares in the ratio of 2:1 (two fully paid-up equity shares of ` 1/- each for every one fully paid-up equity shares held) to all its shareholders in September 2022. As a consequence, the paid-up share capital of the Company has increased from

` 24,366 Lakhs to ` 73,098 Lakhs.

Major Orders Executed

Long-Range Surface-to-Air Missile (LRSAM) Systems, Akash Missile Systems, SATCOM Network, Command & Control Systems, various Radars, Electronic Warfare Systems, Communication Equipment, Sonars, Coastal Surveillance Systems, Electro-optic Systems, Fire Control Systems, Home Land Security Systems, Smart City Projects etc.

Exports

Your Company has been giving an increased thrust towards harnessing the export potential of Defence electronics products and systems including Homeland Security Solutions, Border Protection Systems and state-of-the-art systems and solution and professional electronics to address the Civilian Market, which represent its core area of business.

BEL has been exporting various products and systems to foreign countries and OEM's. Having established a healthy relationship with its current and prospective customers and based on their requirements, BEL is regularly interacting with the Ministry of External Affairs (MEA) & Ministry of Defence (MoD) for enabling supply of various products and systems.

BEL is also exploring the civil equipment's and systems market in developed, developing & third-world countries with products and solutions like Artificial Intelligence-based solutions, Software development for various civilian projects like Smart Cities, Critical Infrastructure Development, Solar Power Generation Projects, Hybrid Power Solutions, etc.

BEL is focussing on the various opportunities in the area of helping OEM's to meet offset obligations in various RFPs of MoD on account of offset policy incorporated in the Defence Procurement Procedure. To this end, the Company is closely working and partnering with various major foreign Aerospace and Defence Companies. BEL is also offering proven products and systems to meet the specific requirements of customers. BEL has identified contract manufacturing (build-to-print and build-to-spec) and Transfer of Technology of the latest systems and solutions as new areas of emerging export opportunities. Further, efforts are on to establish a long-term supply chain connect with global players.

BEL, with concentrated effort, is focussing on the various ‘Make in India' programmes. BEL has offered its various products and services to major Platform OEM's and their Tier-I suppliers. This has helped the Company in leveraging partnerships for co-development, co-production and similar arrangements with various OEM's to get the manufacturing of the products at BEL and utilisation of services of BEL not only for Indian programmes but also for their global requirements.

The Company has achieved an export order acquisition worth US$ 75.66 Million during FY 2022-23, from various customers viz., USA, France, Germany, Israel, Sweden, Mauritius, Armenia, etc. Export order book position on 1 April 2023 was all-time high with US$ 295 Million.

The Company has achieved an export sale of US$ 48.33 Million during FY 2022-23 to various countries, viz., Spain, USA, France, Germany, Israel, Sweden, Russia, Mauritius, Vietnam, Sri Lanka and SEZ's. Major products/systems exported are Radar Warning Receiver, Missile Approach Warning Systems, T R Modules, Coastal Radar Systems, Sub Systems of Radar and EW Systems, Data Link II, Mechanical Parts, Communication Equipment, EOS, Radar & Sonar Spares, Smart Mail Box, etc.

Persistence efforts have yielded results in establishing new customers from targeted geographical locations such as USA, Israel and SEZ - India. With concentrated efforts and in conjunction with R&D, the proposal for Hybrid Power Solution, C4I, etc. was offered to global customers and Foreign Ministries.

The increase in export sales was mainly due to the concentrated efforts made by the Company and new Export initiatives taken such as continuous and focussed discussion with the Ministry of External Affairs & Ministry of Defence and Customers, proactive approach to the customers with offering new and complete systems and procedures, increase in the customer's base, taking up customised & critical projects and delivering them on time as per the requirement of customers, more directed efforts in support/services extended to customers to develop solutions based on their requirement and future threats and opportunities.

Initiatives taken to increase exports by development of new markets, for products and services during FY 2022-23.

1. Major Initiatives taken in the FY 2022-23:

Regular interactions with DRDO for Joint offerings

MoU for a specific program for a target country on an exclusive basis

Working with the local Defence Industry

MoUs with foreign companies for local production

Readiness of technical offerings to Indian missions

MoU with foreign shipyards

Establishing long-term supply chain with Global OEMs

Focus on big programs (C4I, Gun / Missile Systems, etc.)

Proactively offering solutions to customers

2. Major leads in pipe-line for the following products and systems offered to foreign countries/customers:

Coastal Surveillance System

Weapon Locating Radar

Battle Field Surveillance Radar

Upgradation of Naval Radar and Sonars

Contract Manufacturing

Communication Equipment's

Avionics

Hybrid Power Solutions

L-70, Schilka upgrade

3. International Customers:

Airbus Defence and Space, Spain

Lockheed Martin, USA

Thales, France

Elbit, Systems

SAAB, Sweden

GE Medical Systems

GE Healthcare

MoU with the Government

Your Company has been signing a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India based on guidelines issued by DPE. Performance of the Company for the financial year 2021-22 has been rated as "Very Good". The MoU rating for FY 2022-23 is under review by the Government.

Order Book Position

The order book of the Company as on 1 April 2023 is around

` 60,690 Crore. The order book comprises major programmes like Long-Range Surface-to-Air Missile (LRSAM) Systems, Missile Systems, Electronic Warfare, Avionics, Anti-Submarine Warfare, Network Centric Systems, Communication Equipment, Radars, Fire Control Systems, Thermal Imagers, Electronic Voting Machines, Kerala Fibre Optic Network (K-FON), Smart City Projects etc.

Finance

Your Company has been prudent in its financial management practices. It has been much disciplined in its Capital allocation Strategy and efficient in managing its operational expenses. During the FY 2022-23, the Company has met all its CAPEX and working capital requirements through internal accruals.

All the above measures have contributed to consistent growth in all parameters. The Company's PBT has grown to

` 3,98,488 Lakhs in the FY 2022-23 from ` 3,15,780 Lakhs in the FY 2021-22. During the FY 2022-23, EPS (normalized) has increased to ` 4.11 from ` 3.21 in the FY 2021-22. Net worth of BEL has increased to ` 13,58,199 Lakhs in the FY 2022-23 from ` 11,98,426 Lakhs in FY 2021-22 and corresponding Book Value per Share (BVPS) has increased to ` 18.58 in the FY 2022-23 from ` 16.39 in the FY 2021-22.

In spite of increase in Turnover in the FY 2022-23 to

` 17,33,337 Lakhs from ` 15,04,367 Lakhs in the FY 2021-22, Trade Receivable as a number of Days of Turnover has remained same at 148 days in line with the previous year. Similarly, during the FY 2022-23, Inventory as number of days of Value of Production has reduced to 132 days from 133 days in Previous Year.

Our consistent performance and long-term value creation has been reflected in the quantum of Profits/Reserves distributed to Shareholders by the company. During the FY 2022-23, the Company issued 48,732 Lakhs Bonus Shares in the ratio of 2:1 to the shareholders of the Company. Further, during the FY 2022-23, BEL also has disbursed 2 Interim Dividends of 60% each amounting to ` 87,717 Lakhs. The Board of Directors has recommended a final Dividend of `0.60/- per equity share (60%), amounting to ` 43,859 Lakhs for the FY 2022-23. Thus, the total dividend for the FY 2022-23 is ` 1.80/- per equity share (180%), amounting to `1,31,576 Lakhs.

Deposits

The Company does not have any Public Deposit Scheme at present. However, the matured Public Deposit amount (collected prior to February 2006) with the Company was

` 36.95 Lakhs as on 31 March 2023. Out of this, 34 deposits amounting to ` 36.50 Lakhs have not been claimed or have not been paid as these accounts were frozen on the advice of the Karnataka Lokayukta. The remaining matured deposits of

` 0.45 Lakhs as on 31 March 2023 is unpaid due to insufficient documents/records produced by the Depositors.

Research & Development

BEL's Research and Development (R&D) Philosophy is to enhance its pre-eminence in products/services for Defence and Professional Electronics through Research & Development. BEL's R&D strives for the development of new products built with cutting-edge technology modules. While fully meeting the customer requirements, the products developed by the Company are state-of-the-art, competitive and incorporate the highest levels of quality.

R&D has been one of BEL's core strengths which is being enhanced through in-house and collaborative R&D modes.

Various divisions of BEL are involved in the development of Strategic Components, Technology Modules, Subsystems, Products, Systems and Systems of Systems.

BEL has a Three-Tier R&D structure, namely Central Research Laboratories (CRLs); Product Development and Innovation Centre (PDIC) & Centres of Excellence (CoEs); and Development and Engineering (D&E) groups attached to Strategic Business Units (SBUs)/Units. All the R&D/D&E centres of BEL, as recognised by the Department of Scientific & Industrial Research (DSIR), function at multiple locations across India. D&Es are located at each of the SBUs and Units namely Bengaluru, Chennai, Ghaziabad, Hyderabad, Kotdwara, Machilipatnam, Navi Mumbai, Panchkula and Pune. PDIC and CoEs are located in Bengaluru while CRLs are located in Bengaluru and Ghaziabad. The D&Es/PDIC/ CoEs/CRLs work in the identified technology and product areas, based on three-year R&D plans and after due approval of budget/time by the competent authority.

Apart from in-house efforts, BEL R&D Engineers collaborate with DRDO, ISRO, CSIR, other Research Laboratories, National and International Academia, Research Institutes, OEMs/Industries, Experts/Consultants, MSMEs and Start-ups in niche technology areas. BEL has created an ecosystem to co-create products/solutions in many business segments.

The D&E groups at SBUs / Units provide Systems and System of Systems solutions to the end users. Towards this, they get necessary technology modules and subsystems developed through CRLs, PDIC, CoEs and collaborative R&D partners. They conduct all evaluations and trials needed in the process of inducting these systems into service. They also extend technical support during the entire product life-cycle, and upgrades and also take care of obsolescence management.

Important R&D Awards/Recognitions Received During the FY 2022-23:

1. Raksha Mantri's Awards for Excellence in Defence & Aerospace Sector for the FY 2021-22 received for: a. "VHF Marine Radio Communication System for CSS" under Raksha Srijan Ratn 2021-22 by Naval Systems – Radar and Fire Control Systems SBU, Bangalore Complex b. "AI-Based Gesture Identification for Integrated Perimeter Security Surveillance" under Raksha Anveshan Ratn 2021-22 by Central Research Laboratory, Bengaluru

2. SODET Awards for Technology Development and Innovation Category for the FY 2020-21 and FY 2021-22 were received for: a. Technology Development Gold Award (2020-21) to Central Research Laboratory, Ghaziabad b. Technology Innovation Silver Award (2020-21) to Central Research Laboratory, Bengaluru c. Technology Development Gold Award (2021-22) to Product Development and Innovation Centre, Bengaluru d. Technology Innovation Silver Award (2021-22) to Homeland Security & Smartcity SBU, Bangalore Complex

3. SIDM Champion Award 2022 in the category of Technology & Product Innovation among Large Companies.

4. Quantic Technology Excellence Award 2022 in the category of Best Security, Defence or Law Enforcement IT project.

5. Governance Now PSU Award 2022 in the category of Excellence Award for Research & Innovation.

6. International Aerospace and Defence Award 2022 for "Excellence in Innovation, Design and Technology in R&D".

BEL has met the MoU parameter w.r.t R&D expenditure on R&D/ innovations initiatives as % of PBT for FY 2022-23.

BEL R&D Cell at Kochi has realised core technology modules for Sonar applications. Emergency Pinger for AUV/ ROV applications and Ultra Short Base Line (USBL) under water acoustic positioning system. BEL R&D Cell at IIT Madras Research Park has established a node for Quantum Key Distribution.

Future Plan of Action: BEL will enable the scaling of R&D for innovative Products / Services across the organisation to align with the objective of growth and transformation. All the tiers of R&D (D&Es, PD&IC/CoEs and CRLs) will continue to collaborate in identifying new areas of development and complementing each other in addressing the requirements through in-house and collaborative modes of development. BEL plans to continue investing in R&D for meeting the continuously evolving requirements of its customers as well as for diversification. While a major thrust would be given to in-house development, collaboration with national laboratories, academic institutions, research institutes, industry and MSMEs will also continue to be strengthened.

Focussed technology/product development efforts have been initiated in diversified areas like Arms & Ammunition,

Smart Agriculture and AI-based projects including Predictive Maintenance.

BEL has consistently been investing about 6.28% of its annual revenue every year in R&D and will continue to support R&D initiatives for enabling an Atmanirbhar Bharat, making & delivering high-quality defence & professional electronics products, systems & solutions for India and the world.

New Facilities Established

Infrastructure enhancement is one of the major objectives of the Company in order to stay upgraded for global opportunities and to be the best in business. During the year 2022-23, the Company has spent around ` 54,137 Lakhs as part of CAPEX investment towards modernisation of Plant & Machinery, Test instruments, R&D investments, Infrastructure up-gradation etc.

Information Technology (IT) Initiatives

BEL has adopted Virtual Desktop Infrastructure (VDI) to avoid storing of Data on all PCs and for enhancing Information Security. PCs with Windows OS are inherently vulnerable to malware, viruses, worms, data leakage and other Security vulnerabilities. Due to the Lack of central visibility and control over PCs in BEL Units and Offices, it was not practically possible to implement a uniform security policy. These issues have been overcome by the implementation of centralised VDI and replacing or converting End Point PCs to Thin Clients. The Data Centre facilities of Units have been upgraded for hosting VDI. Separate VDI has been commissioned for Intranet and Internet. All data are now stored only in Data Centres in encrypted form. Centralised security policies and Security patching are now enforced centrally for the entire infrastructure.

Primavera Project Management System has been rolled out for selected projects for planning, managing and execution of projects. The system has scheduling, risk analysis, resource management and control capabilities and is fully integrated with BEL's SAP ERP. It has several features like dashboard for Management, various graphical charts and histograms which enable Management to focus on the projects key performance indicators, and empowers senior management to take informed decisions.

Network Detection and Response (NDR) has been implemented to complement the existing signature-based Detection and Prevention systems in BEL's Security Operations Center. This solution uses Machine Learning and other analytic techniques to monitor and detect suspicious network traffic on enterprise networks. NDR gives visibility into everything happening on the network, including hackers lateral movements, giving the opportunity to quickly respond and contain the malware before suffering an actual breach.

Face recognition based attendance system has been implemented which is directly integrated with SAP ERP to ensure contactless attendance. In future it will be integrated with the SAP log-on based on attendance and many more security features can be built on it.

Quality

Quality, Technology, Innovation are three guiding pillars of BEL's business initiatives. Quality, being the first pillar, has been one of the focus areas for the company. The Company is committed for continual improvement through process approach in line with World-Class Quality Systems. All Units / Strategic Business Units (SBUs) / Common Services Groups (CSGs) are accredited to ISO 9001 Quality Management System (QMS). Nineteen Units / SBUs of the company have upgraded their QMS to Aerospace Standard, AS 9100D. All Units of the Company are committed to Environment Management System through ISO 14001 Certification. Ghaziabad and Kotdwara Units are certified for Combined Certificate of ISO14001 & ISO 45001. Bangalore Complex is certified for first time for ISO 45001 a, standard for Occupational Health and Safety management System. (OHSMS). BEL Ghaziabad Unit is been conferred with CII-EXIM Bank Business Excellence Award and also Role Model Organization Award, in this year 2022.

BEL received 22 Green Channel Certificates covering 12 Units/ SBUs from DGQA for a total of 65 products, in the areas of Radars, Naval Systems, Communications, and Electro Optics Products. Mast, Batteries and Gun Upgrade. BEL is the first PSU to reach this new height on Quality aspects; Ghaziabad SBU DCCS has received the Green Channel Certificate for the first time for CMS Systems in this year. 13 Units/SBUs/ Divisions of the company are certified for Information Security Management System ISMS ISO 27001. During the year Pune Unit is certified for ISMS ISO 27001 for first time, EW&A, Components SBUs of BG CX and Pune Unit are recertified for AS9100D and HLS&SCB SBU, CSGs C-QA, CMS, ES are recertified for ISO 9001 Quality Management System Standard. BEL has a total of 19 AS9100D certificates and 8 ISO 9001 Certificates. Software SBU is certified for CMMi level 5 and also for ITSMS ISO 20000-1. NCS & DCCS SBUs of Ghaziabad, CRL – Ghaziabad, Chennai, and Hyderabad Units are certified for CMMi level 3.

The company has facilitated involvement of Non-executives in the Quality Movement through Quality Control Circles (QCC). During the year 2022-23, 717 QCC Presentations are made by various QCC Teams. Many QCC teams are nominated to for national competitions and all are adjudged for various categories of Awards. SC & US SBU QCC Team Digma has participated in ICQCC 2022 at Jakarta, Indonesia and won the Platinum Award. Around 4,203 suggestions are awarded in the FY 2022-23. A total savings of ` 80 Crore was achieved through this Suggestion Scheme implementation in various process improvements during this year.

During the year, 15 senior executives from various units have been trained as "Six Sigma Black Belts" by Indian Statistical Institute, Bangalore. One senior executive is trained on "Master Black Belt" by Indian Statistical Institute, Bangalore. Total 474 Six Sigma Projects have been completed during the year 2022-23, resulting in an estimated savings of ` 146.72 crore to the company. 15 BEL Six Sigma teams participated in regional level competitions CCQC-2022 organized by QCFI and all 15 teams won highest award "GOLD" award. 15 BEL Six Sigma teams participated in National level competitions NCQC-2022 organized by QCFI and all 15 teams won highest award "PAR Excellence" award.

The Company is nominated D&E Engineers for Global Certification on Reliability "Certified Reliability Engineer (CRE)" certification by ASQ. During the year, 24 D&E and Testing Engineers are certified as CREs. The Company is also nominated D&E Engineers for Design for Six Sigma Green Belt (DFSS-GB) certification by Indian Statistical Institute. During the year 26 D&E Engineers are certified as "DFSS Green Belts" (DFSS-GB). During the year, 25 mid-level and senior executives are trained on "Business Analytics & Data Management" by Indian Statistical Institute, Bangalore.

The Company is nominated Software Engineers for Global Certification on "Certified Software Quality Engineer" (CSQE) conducted by ASQ, during the year 9 Software Engineers are certified as CSQEs. During the year, 30 operating level Quality Engineers are certified as "Certified Quality Engineers (CQE)" by ASQ. The Company is also nominated Executives working in supply chain fields, like Purchase, Subcontract, Production control for the Global Certification on "Certified Supplier Quality Professional (CSQP)" by ASQ, during the year 8 Executives are certified as CSQPs. Certified Manager for Quality and Organisation Excellence (CMQ&OE) by ASQ for senior level executives is also conducted during the year and 7 senior executives are certified as CMQ-OEs. In order to inculcate a culture of Project Management, training programs for Project Management Professionals (PMP) are conducted. During the year 49 PMPs are certified by Project Management Institute (PMI).

Panchkula Unit won the First Prize, Chennai Unit and EW&A SBU of BG cx and Panchkula Unit won second and third prizes respectively in internal Quality Recognition Award (QRA) 2022.

This year also the company conducted the Integrated Customer satisfaction survey, and the Satisfaction Index is 87.60 with a net promoter score of 63.20 which very good in comparison with bench mark companies.

Human Resources

Your Company employed 8,832 people as on 31 March 2023 compared to 8,853 people as on 31 March 2022. Out of these employees, 4,839 were engineers/scientists and 1,911 were women employees. A total of 503 employees were inducted during the FY 2022-23. 87 employees belonging to the Scheduled Castes (SC), 34 employees belonging to the Scheduled Tribes (ST), 173 employees from the Other Backward Classes (OBC), 32 employees belonging to the Minority Community and 7 physically challenged employees were inducted during FY 2022-23.

Your Company has been complying with the Government directives on reservations. The particulars of SC/ST and other categories of employees as on 31 March 2023 are as under:

Category of	Executives		Non-Executives
Employees	Group ‘A'	Group ‘B'	Group ‘C'	Group ‘D'
Scheduled	1,061	35	495	20
Caste
Scheduled Tribe	381	18	120	14
OBC	1,376	59	778	29
Ex-Servicemen	17	1	23	-
Physically	401	14	227	4
Challenged

Various training programmes were conducted during the year to enhance competencies in Technical, Functional, Managerial and Leadership areas. Structured Executive Development Programmes were conducted regularly with premier institutes to meet the evolving training needs of executives as they progress through various grades. A detailed write-up on HR initiatives during the year is provided separately in the Management Discussion and Analysis Report, which forms a part of this report.

Disclosure Under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company is an equal-opportunity employer and consciously strives to build a work culture that promotes the dignity of all employees. As required under the provisions of the Sexual Harassment of Woman at Workplace (Prevention,

Prohibition and Redressal) Act, 2013 and the rules framed thereunder, the Company has implemented the policy on prevention, prohibition and redressal of sexual harassment at the workplace, which has been uploaded on the Company's intranet portal. All women, permanent, temporary or contractual, including those of the service providers, are covered under the Policy.

An Internal Complaints Committee has been constituted in each of the nine constituent units, including the corporate office to redress complaints relating to sexual harassment. Awareness programmes were conducted across the Company to sensitise employees and uphold the dignity of their colleagues at the workplace, particularly with respect to the prevention of sexual harassment. The details of the complaints filed, disposed of and pending during the year pertaining to sexual harassment are provided in the Business Responsibility and Sustainability Report, which forms a part of this report.

Awards and Accolades

Your Company strives to achieve the highest level of quality in all its products by considering consumer insights and by reaching out to consumers. During the year, your Company has received the following various Awards and Accolades:

The Economic Times - Iconic Brand of India Award – 2022.

International Aerospace & Defence Award for Excellence in Innovation, Design, Technology or R&D.

Winner of Raksha Mantri's Export Raksha Niryat Ratna Award 2021-22 among Large Companies.

SIDM (Society of Indian Defence Manufacturers) Champion Award 2022 for Technology & Product Innovation among Large Companies.

ICC (Indian Chamber of Commerce) PSE Excellence Awards for the Company of the Year, Inclusivity - Contribution of Women and Differently Abled in PSEs, and Runner Up Award for Operational Performance Excellence.

Twin honour of CII EXIM Bank Business Excellence Award (2022) and the Jury's Commendation for Role Model Organisation for BEL's Ghaziabad Unit.

Governance Now 9^th PSU Awards for Excellence in Research & Innovation, Environment & Sustainability, Geo-Strategic Reach and Communication Leader of the Year.

Champion of Champions Award (First Prize) and the Vox Populi (Voice of the Audience) Award for outstanding contribution to raising manufacturing productivity, for the Export Manufacturing SBU of BEL's Bangalore Complex, presented at the National Productivity Summit organised by the Indian Machine Tool Manufacturers' Association (IMTMA).

IPC India Award is a recognition of BEL's long-term association with IPC for its training and certification needs.

Certificate of Appreciation from the Ministry of Micro, Small and Medium Enterprises (MSME) for the highest procurement amongst Navratna CPSEs from women entrepreneurs under the MSME category during the financial year 2021-22. The award acknowledges the efforts taken by BEL towards the mandate of implementation of the Public Procurement Policy of the Government of India.

Quantic Technology Excellence Award 2022 for Best Security, Defence, or Law Enforcement IT Project.

Best Supporting Organisation – PSU Award from QCFI.

Public Relations Council of India (PRCI) Excellence Awards including the PRCI Hall of Fame Award.

Awards for Excellence in OL Implementation from TOLIC, Bengaluru

Urban Infra Business Leadership Award 2022 in recognition of BEL's contributions in line with the Government's Make in India initiative, for the transformation of Metro and Rail commutation in India.

Innovative CFO Award at the 2^nd edition of The Business Leadership Awards for Director (Finance) & CFO.

Public Sector CFO of the Year Award for CFO.

Most Iconic Organisation Award for BEL-Panchkula by the World Manufacturing Congress.

Innovative Digital Smart City Project Award for Chandigarh Smart City to BEL-Panchkula from Indian Institute of Material Management, Chandigarh.

Elets Aatma Nirbhar Bharat Award for Chandigarh Smart City for BEL-Panchkula

CII Corporate Women Leadership Award in Technology Category for Mrs Prabha Goyal, GM (PK).

Raksha Mantri's Awards – 2^nd Runner Up for AI-based gesture identification and Integrated Perimeter Security Solution for Santosh Kumar & 2^nd Runner Up for Indigenisation of Coastal Radar System & VHF Marine Radio Communication System for Raghu Mallapuram.

Subsidiaries, Joint Ventures and Associates

BEL Optronic Devices Limited (BELOP) is a whollyowned subsidiary of BEL, which manufactures Image Intensifier Tubes. Your Company has made a further investment of

` 2,199 Lakhs (87,16,850 equity shares of ` 10/- each at a premium of ` 15.23/- per share) during the FY 2022-23 in the equity shares of BELOP, by subscribing to the right issue offered by BELOP. BELOP achieved a turnover of ` 6,098 Lakhs for the year compared to ` 4,586 Lakhs in the previous year. The Profit After Tax (PAT) for the year was ` 676 Lakhs compared to ` 516 Lakhs in the previous year.

BEL-THALES Systems Limited (BTSL) is a subsidiary of BEL. Your Company holds 74% of the equity capital in BTSL. During the year, BTSL recorded a turnover of ` 7,815 Lakhs compared to ` 3,901 Lakhs in the previous year. The Profit After Tax (PAT) for the year was ` 700 Lakhs compared to ` 521 Lakhs in the previous year.

The Associate Company GE BE Private Limited [26% shareholding by BEL] continues to perform well. It manufactures CT Max and other latest version X-Ray Tubes. GE BE Pvt. Ltd. recorded a turnover of ` 1,57,547 Lakhs for the year compared to ` 1,56,267 Lakhs in the previous year. The Profit After Tax (PAT) was ` 17,624 Lakhs for the year compared to ` 17,578 Lakhs in the previous year.

The Defence Innovation Organisation (DIO) is a ‘Not for Profit' Company as per the provisions of Section 8 of the Companies Act, 2013 with an authorised share capital of ` 1 Crore. With an equity participation of 50% from BEL and 50% from HAL, the Company was formed with an objective of funding innovation in the Defence sector.

In pursuant to provisions of Section 129(3) of the Companies Act, read with Rule 5 of Companies (Accounts) Rules, 2014 (as amended), a separate statement containing the salient features of the financial statement of Subsidiaries/ Associate/ Joint Ventures in Form AOC-1 is appended to the Financial Statements.

Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company, consolidated financial statements along with relevant documents and separate audited financial statements in respect of subsidiaries, are available on the website of the Company www.bel-india.in.

Consolidated Financial Statements

Consolidated Financial Statements of your Company and its Subsidiaries for the year ended 31 March 2023 have been prepared in accordance with the provisions of Section 129(3) of the Companies Act & applicable Indian Accounting Standards and forms part of this report.

Vigilance

The Company's Vigilance Organisation is headed by a Chief Vigilance Officer (CVO), an IAS Officer from Haryana Cadre (1991 batch). Permanent Vigilance Officers are posted in each of the Units and SBUs. Vigilance Committees are formed to look after the Vigilance Administration in the Units and SBUs. The Unit/SBU Heads are designated as Chairman of the Vigilance Committee. Apart from this, there exists a Vigilance Committee at the Corporate, where the Chairman cum Managing Director is the Chairman of the Committee and the CVO is the Member Secretary. Preventive Vigilance has been the thrust area of the Vigilance Organisation and the same received focussed attention during the current year. The Vigilance Department examines procurements and processes on a continual basis, conducts regular and surprise inspections and investigates instances of any suspected transactions referred to it. An employee or third parties can refer any suspected transaction to the notice of CVO for investigation which is examined as per the Complaint Handling Policy of the Company. Online Complaint Management System has been made operational and complaints can be filed by accessing the Vigilance Portal on the BEL website.

During the FY 2022-23, 802 high-value Purchase Orders/ Contracts (> ` 1 Crore) have been reviewed. CTE Type Intensive Examination has been restructured with the formation of Five Intensive Examination teams. CTE Type of Intensive Examination of 60 High-value Procurements Contracts has been taken up during the year 2022-23. Regular and Surprise Checks and Inspections have also been conducted by the field Vigilance Officers. During the year, 20 Complaints were received. A total of 12 Complaints were disposed of. Disciplinary action and System/process improvement has been recommended in some cases where lapses were observed.

During the year, 244 Executives and 106 Non-Executives were given a basic awareness programme on Vigilance. 62 Executives & 19 Non-Executives working in sensitive areas for more than 3 years have been job rotated and the percentage coverage is 96.3%.

First surveillance audit was carried-out by M/s. TUVSUD for ISO 9001/2015 Certification for the Vigilance function of BEL and recommended for continuation of certification.

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

E-Procurement.

Online registration of Vendors.

Vendor Payment Information System.

E-Payment/Bank transfer of payment to Vendors.

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

Details of awarded Contracts/Purchase Orders issued on nomination / single tender basis value exceeding ` 5 Lakhs are posted in the website.

Corruption Risk Management Policy is framed and implemented across the Company.

Vendors' Directory is maintained.

File Life Cycle Management System (FLM) is fully implemented across the Company.

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

Vigilance Monthly and Quarterly Reports are generated through SAP

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

Many system improvement projects are implemented across the Company and some of the system improvement projects are documented in CVC newsletter/bulletin.

Vigilance setup in BEL has been continuously endeavouring to bring transparency, fairness and equity in all transactions and processes of the Company through creating a sense of awareness of the System and Procedures through awareness campaigns and training programmes. Some of the key activities that have been carried out during the year are: a) BEL has observed Vigilance Awareness Week from

31 October to 6 November 2022 with the theme: "Corruption-free India for a Developed Nation" at all its offices across the country. Vigilance Awareness Week-2022 banners were displayed at prominent places at Corporate Office and also at Units / Regional Offices / Marketing Centers / Product Service Centers.

Various awareness programmes and activities were held to keep the spirit of celebrating Vigilance Awareness Week. Lecture Programmes, Competitions at Schools and Colleges, Street Play, Gram Sabhas, Vendors Meet and other activities were held during the Week.

E-Pledge was facilitated in the BEL intranet enabling employees to take E Pledge. Certificate of appreciation and commitment, issued by CVO/BEL was in downloadable option for the employees who have taken the E-Pledge through the BEL Intranet. 8,740 employees have taken e-pledge.

Integrity pledge was administered to all employees in their respective workplaces across all the Units.

Apart from this, Employees were provided with a link to CVC Website to take the E-Pledge from the CVC website. E-mail on Vigilance Awareness was sent to all registered Indian vendors of BEL during the week.

b) Various workshops and lecture programmes were conducted during the Week:

Guest Lecture on "Corruption-Free India for a Developed Nation" by Mr Krishna Murthy A R (Retired GM (F) / BEL) was organised by CO/VIG, through VC on 2 November 2022. All Units Vigilance Officers, Dept. Heads, SBU Heads with nominated Executives participated in the VC.

Guest Lecture on "Corruption-Free India for a Developed Nation" by Justice N. Kumar, Retd. Judge of Karnataka High Court was organised at Rashtrakavi Kuvempu Kalakshetra on 3 November 2022. Director (BC), SBU Heads and around 500 nominated Non-Executives and Executives attended the programme.

Director of Technical Education, Smt. C. Naga Rajani, IAS visited Machilipatnam Unit and Vigilance Pledge was administered to all the Trainees. Also, the Vigilance Pledge was administered at Kendriya Vidyalaya, Machilipatnam and Govt. Girls Junior College, Machilipatnam.

A Workshop / Sensitisation programme was conducted on "Preventive Vigilance and Awareness" by Shri. Yogesh Kumar Sethi, Sr DGM (VO), BEL-GAD, for executives and employees working in sensitive areas, contract engineers and Apprentices in HRD Hall on 28 October 2022 at Kotdwara Unit.

Workshop at Panchkula Unit on Vigilance/Health awareness was conducted in the HRD auditorium on 2 November 2022 in which more than 60 employees were present.

Conducted Vigilance Awareness Training to New Recruits and Lecture on Preventive Vigilance through VC by Mr Krishnamurthy was organised at Pune Unit on 8 November 2022.

Vice Chancellor, Krishna University, Machilipatnam Visited and his message was delivered through media about Vigilance participation in Swachh Bharat.

Lecture by Shri Vijaya Vast ACP Crime Branch Navi Mumbai was given during Valedictory Function on 4 November 2022.

Guest Lecture by Justice Surrender Tirade, Bombay HC Retd., and presently President, State Consumer Dispute Redressal Commission, Maharashtra was delivered at Navi Mumbai on 12 November 2022.

Guest Lecture at Pune Unit on Preventive Vigilance by Dy. Commissioner (GST-Pune II).

c) Two-day Induction Level Training is imparted to the newly joined Probationary Engineers in August, September and October 2022.

d) Two-day Annual Vigilance Meet 2022-23 was held at Pune on 24 and 25 February 2023. Two guest lectures on the topic "Procurement Frauds and Case Studies" & "Cyber Crimes and Criminal Investigation" had been organised during the Meet. "Jagriti - Vigilance Bulletin", an internal Newsletter with the theme "Corruption Free India for a Developed Nation" was released by CVO.

Integrity Pact

One of the initiatives of the Central Vigilance Commission (CVC) to eradicate corruption in procurement activity is the introduction of the Integrity Pact in large-value contracts with Government Organisations. In line with the directives from the Ministry of Defence and the Central Vigilance Commission, your Company has adopted Integrity Pact with all vendors/suppliers/contractors/service providers for all Orders/Contracts of value ` 300 Lakhs and above. The Integrity Pact essentially envisages an agreement between the prospective vendors/bidders and the principal (BEL), committing the persons/officials of both sides, not to resort to any corrupt practices in any aspect/stage of the contract. Only those vendors/bidders, who commit themselves to such a Pact with the principal, would be considered competent to participate in the bidding process. Integrity Pact, in respect of a particular contract, would be operative from the stage of invitation of bids till the final completion of the contract. Any violation of the same would entail disqualification of the bidders and exclusion from future business dealings.

As recommended by the CVC, the Company has appointed Dr Joginder Paul Sharma, IAS (Retd.), Mr Sanjay Kumar Srivastava, IAS (Retd.) and Mr Rajiva Ranjan Verma, IPS (Retd.) for monitoring the implementation of the Integrity Pact in the Company.

Procurement from Micro & Small Enterprises (MSEs)

Your Company has been providing increased thrust on enhancing procurement from Micro & Small Enterprises (MSE) and has been implementing Public Procurement Policy for MSEs as per the guidelines / notification issued by the Ministry of MSMEs.

BEL has on-boarded on the TReDS Platform, GeM, MSME Sambandh & MSME Samadhaan Portals complying with Government guidelines.

The Company has conducted and participated in Vendor Development Programs for Indian vendors including MSME/ Start-ups on various occasions throughout the year.

BEL extends provisions as envisaged in Ministry of MSME notifications, released from time to time, to MSME/Start-ups in procurement.

BEL's procurement from MSEs is 32% of total Domestic procurement during 2022-23 against the mandatory target of 25% as per the Public Procurement Policy for MSEs.

Implementation of Official Language Policy

Your Company is committed to adhering to the Official Language (OL) policy of the Government of India. The Company has achieved the various targets prescribed in the Annual Programme issued by the Dept. of OL, Ministry of Home Affairs (MHA), GoI to transact official work in Hindi.

OL Inspections: Committee of Parliament on Official Language conducted OL inspection of the Chennai Unit on 21 May 2022 and Navi Mumbai Unit on 14 July 2022. Corporate OL Inspection team conducted 05 OL inspections of its subordinate Units/Offices. DDP, and MoD officials conducted an OL inspection of the Hyderabad Unit on 20 September 2022. AD (Implementation), Regional Implementation Office (South), Dept. of OL, Bengaluru conducted an OL inspection of the Corporate Office on 31 March 2023.

Bilingualisation: All Units and Offices of the Company including the Corporate Office are issuing documents in bilingual as per Section 3(3) of the Official Language Act, 1963. Usage of Hindi is being encouraged in correspondence and on computers. Individual orders under OL Rule 8 (4) were issued by CMD to officers/employees who are having proficiency in Hindi to do their complete work in Hindi. Also, a circular on the creation of Check Points under Rule 12(1) of OL Rules was issued.

Computerisation and Website: Updated information pertaining to OL is being communicated through OL Portal

GARIMA introduced by OL Dept. of Corporate Office. Quarterly progress reports from Units/Offices are being received online in SAP. Hindi notings are being written in File Life-cycle Management (FLM). Company's website is also available in Hindi.

Training and Reporting: Roster is maintained for Hindi language traning and computer training which is updated from time to time. As per the Roster, employees were nominated for online training. Quarterly/half-yearly reports are sent to OL Dept., MHA, GoI, MoD, Hindi Teaching Scheme and Town Official Language Implementation Committee (TOLIC) as per schedule.

Hindi Month Celebrations: Hindi Month and Hindi Day were observed during September in all the Units and Offices of the Company. 22 officers from BEL took part in the Hindi Day Function and 2^nd All India OL Conference organised by the Dept. of OL, MHA on 14 September 2022 at Surat (Gujrat).

Meetings/Workshops: Official Language Implementation Committee (OLIC) meetings, Hindi workshops and technical talks in Hindi were conducted in all Units / Offices.

Incentives and Awards: Company has various lucrative Incentive Schemes for doing original work in Hindi. These schemes are named after the renowned Hindi Litterateur which carries cash awards from ` 2,000 to ` 10,000. Employees have participated in the TOLIC competitions and won prizes. Hindi Magazine NavaPrabha of BEL Corporate Office awarded 1^st Prize among Bengaluru-based PSUs by TOLIC. CMDs OL Shield for excellence in OL implementation was awarded to the units situated in A, B and C regions.

Publications: Hindi Magazines were published in the Units / Corporate Office of the Company to propagate the usage of Hindi.

New Initiatives: A dedicated section for OL has been introduced on the Company's website. Defense Electronics Glossary of BEL is being prepared in coordination with the Commission for Scientific and Technical Terminology (CSTT), Ministry of Education. The first Bharatendu Rajbhasha Kaushal Abhimukheekaran Program was initiated by Corporate Office for OL Officers/Translators of Central Government Offices/ Banks/Undertakings located in Bangalore. World Hindi Day was celebrated on 10 January 2023. BEL Rajbhasha Gyan Kosh (501 Questions/Answers on OL Hindi) was published by Corporate OL. As part of the Krishna Sobti Hindi Lecture

Series, 05 lectures were organised on generic interest and technical topics.

Continuous efforts are in progress to ensure OL Implementation and for increasing the progressive usage of Hindi across the Company.

Implementation of the Right to Information Act, 2005

In consonance with the provisions of the Right to Information Act, 2005 (the Act), your Company has a well-defined mechanism in place to address the provisions of the Act. Your Company has a designated General Manager level officer as a "Nodal Officer" to oversee the implementation. The requests received are processed by 17 senior personnel designated as "Central Public Information Officers (CPIOs)" including one at Corporate Office and each at the Units/ROs. Your Company has a designated General Manager level officer as a "First Appellate Authority" to dispose of the first appeals filed under the Act. In compliance with Government directives, your Company is successfully processing the applications under the Act, online.

The information to be provided as per Section 4(1) (b) of the Right to Information Act, 2005 has been posted on the website of the Company www.bel-india.in

The FAA, CPIOs and other internal stakeholders involved are sensitised about their obligations under the Act through training and workshops.

Your Company received 450 applications (including 77 transferred by other Public Authorities to BEL) during the period from April 2022 to March 2023, and 15 RTI applications were carried forward from the FY 2021-22. A total of 422 applications were responded to including 96 applications that were rejected, out of a total of 465 applications. Your Company received 86 First Appeals during the period, out of which 85 were disposed-off. Quarterly RTI returns for all four (4) quarters have been submitted to the Central Information Commission.

Meetings of Board and Committee(s)

During the year, eight Board meetings were held and the maximum interval between any two meetings was not more than 120 days. The details of meetings of the Board and Committee(s) held during FY 2022-23 are furnished in the Corporate Governance Report, which forms a part of this report.

Change in Directors & Key Managerial Personnel and their Shareholding

The following changes took place in the Directorate and Key Managerial Personnel of your Company during FY 2022-23:

Sl. No.	Name of the Director	Designation	Date of Appointment	Date of Cessation
1	Mr Bhanu Prakash Srivastava	Director (Other Units)	20.04.2022	Not Applicable
2	Ms Manjula Jillellamudi	Govt. Nominee Director	Not Applicable	01.05.2022
3	Dr Binoy Kumar Das	Govt. Nominee Director	04.07.2022	Not Applicable
4	Mrs Anandi Ramalingam	Chairman & Managing Director Additional	Not Applicable	31.08.2022
		Charge, Director (Marketing)
		& Director (HR) - Additional Charge
5	Mr Rajasekhar M V	Director (R&D)	Not Applicable	31.08.2022
6	Mr Manoj Jain	Director (R&D)	26.09.2022	Not Applicable
7	Mr Anurag Bajpai	Govt. Nominee Director	Not Applicable	23.12.2022
8	Mr Dinesh Kumar Batra	Chairman & Managing Director Additional Charge, Director (Finance) & CFO, Director (Marketing) Additional Charge & Director (HR) Additional Charge	Not Applicable	31.10.2022
9	Mr T Natarajan	Govt. Nominee Director	02.01.2023	Not Applicable
10	Mr Damodar Bhattad S	Director (Finance)	11.01.2023	Not Applicable
11	Mr Damodar Bhattad S	CFO	28.01.2023	Not Applicable

Mr Bhanu Prakash Srivastava, Chairman & Managing Director (Additional Charge), Mr Damodar S Bhattad, Director (Finance) & Chief Financial Officer and Mr S Sreenivas, Company Secretary are the KMPs, as defined under Section 2(51) of the Companies Act, 2013.

Mr Vikraman N was appointed as Additional Director [Director (HR)] w.e.f 01.06.2023 and Mr K V Suresh Kumar was appointed as Additional Director [Director (Marketing)] w.e.f 16.06.2023.

Mr Vinay Kumar Katyal, Director (Bangalore Complex) retired from his services on 31 July 2023 on attaining the age of Superannuation.

Mr T Natarajan, Mr Damodar Bhattad S, Mr Vikraman N and Mr K V Suresh Kumar, Additional Directors are being appointed as Directors on terms as set out in the Notice of the 69^th Annual General Meeting.

Mr Bhanu Prakash Srivastava, Director (Other Units), retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.

The details of Directors and Key Managerial Personnel (KMPs) who are holding shares in the Company as on 31 March 2023 are given below:

Sl. No.	Name	Designation	No. of Equity Shares Held
1	Mr Bhanu	Director (Other Units)	3,789
	Prakash	CMD Additional Charge
	Srivastava	Director (Marketing)
		Additional Charge

 

Sl. No.	Name	Designation	No. of Equity Shares Held
2	Mr Vinay Kumar	Director (Bangalore	3,789
	Katyal	Complex)
3	Mr Manoj Jain	Director (R&D)	7,590
4	Mr Damodar S Bhattad	Director (Finance) & CFO	3,789
5	Mr Sreenivas S	Company Secretary	3,789

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

Directors' Responsibility Statement

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors, in terms of Sections 134

(3)

(c) & 134

(5) of the Companies Act, 2013 state that: a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2023 and of the profit of the Company for the year ended 31 March 2023; c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) the Directors have prepared the annual accounts on a going concern basis; e) the Directors ensured proper internal financial controls were in place and such financial controls were adequate and were operating effectively; and f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws were in place and same were adequate and operating effectively.

Integrated Report

The Company, has voluntarily provided an Integrated Report, which encompasses both financial and non-financial information to enable the Members to take well-informed decisions and have a better understanding of the Company's short, medium and long term perspective. The Report also touches upon aspects such as the organisation's strategy, governance framework, performance and prospects of value creation based on the six forms of capital viz. financial capital, manufactured capital, intellectual capital, human capital, social and relationship capital and natural capital.

Significant and Material Orders

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

Events Subsequent to the Date of Financial Statements

There are no material changes and commitments affecting the financial position of the Company which occurred between 31 March 2023 and the date of signing of this Report.

Related Party Transactions

There were no materially significant related party transactions with the Company's Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company. Transactions with related parties that were entered into during FY 2022-23 were on an arm's length basis and were in the ordinary course of business. None of the transactions with related parties fall under the scope of Section 188

(1) of the Companies Act, 2013. All Related Party Transactions are placed before the Audit Committee and also to the Board for approval, if required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transaction has been uploaded on the Company's website www.bel-india.in. Information pursuant to Section 134

(3)

(h) of the Companies Act, 2013 read with rule 8

(2) of the Companies (Accounts) Rules, 2014 is attached to this report as Annexure-1.

Corporate Social Responsibility

Your Company has formulated a Corporate Social Responsibility Policy pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 read with various clarifications, and amendments issued by the Ministry of Corporate Affairs (MCA). The CSR Projects are taken up in line with Schedule-VII of the Companies Act, 2013, which is duly incorporated in the Corporate Social Responsibility Policy and forms the guiding principle for all our CSR programmes. The Corporate Social Responsibility Policy of BEL is posted on the Company's website, www.bel-india.in.

The objective is to contribute towards inclusive growth, sustained and equitable development in society through capacity-building measures, empowerment of the marginalised and underprivileged sections/communities. Focussed interventions are undertaken in the sectors of Healthcare, Education, Rural Development, Environmental Sustainability & Vocational Skill Development.

During the FY 2022-23, DPE guidelines for CSR Expenditure stipulate CPSEs to take up focussed CSR interventions on the common theme of Health & Nutrition with preference being given to Aspirational Districts identified by NITI Aayog. Accordingly, the Company has rolled out focussed interventions to augment health infrastructure in Government hospitals, PAN India. Encouraging innovative learning in remote Government schools, promoting Skill India – honing technical skills, providing industry exposure and imparting employability skills to youth from economically weaker sections of society, are high points in the CSR space.

Pursuant to the requirement under the Companies (Corporate Social Responsibility) Rules, 2014 (as amended), a report on CSR activities for the FY 2022-23 is annexed herewith as

Annexure-2.

Statutory Auditors

Pursuant to Section 139(5) of the Companies Act 2013, for the FY 2022-23, the Comptroller and Auditor General of India (C&AG) appointed M/s Guru & Jana, Chartered Accountants, Bengaluru, as Statutory Auditors of the Company for audit of accounts of Bangalore Complex, Hyderabad unit, Chennai unit and Corporate Office. M/s V A Dudhedia & Co, Chartered Accountants, Pune were appointed as Branch Auditors of Pune & Navi Mumbai units. M/s Ashwani & Associates, Chartered Accountants, New Delhi, were appointed as Branch Auditors of Ghaziabad, Panchkula and Kotdwara units. M/s P Subbarayudu & Co, Chartered Accountants, Vijayawada were appointed as Branch Auditors for the Machilipatnam unit.

The Statutory Auditors' Report on financial statements for the FY 2022-23 and 'Nil' comments of the Comptroller & Auditor General of India (C&AG) under Section 143(6)(b) of the Companies Act, 2013 on the financial statement, including consolidated financial statement, are appended to the Annual Report.

Cost Auditors and Maintenance of Cost Records

Your Company appointed M/s Murthy & Co. LLP, Cost Accountants, Bengaluru, as Cost Auditors of the Company for the FY 2022-23 for the audit of the cost records of the Company. The Company maintains cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (as amended), the Company has appointed M/s Thirupal Gorige & Associates LLP, Practicing Company Secretaries, Bengaluru for the FY 2022-23 to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed to this report as Annexure-3.

Reporting of Frauds by Auditors

During the year, neither the Statutory Auditor nor the Secretarial Auditor have reported to the Audit Committee under Section 143(2) of the Companies Act, 2013, any instance of fraud committed against the Company by its officers or employees, the details of which would need to be mentioned in the Board's Report.

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on 31 March 2022 is available on the Company's website: https://www.bel-india.in/ContentPage.aspx?MId=17&CId=4 27&LId=1&link=427

Risk Management

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

Company's Policy on Director's Appointment, Remuneration and Board Evaluation

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

Vigil Mechanism / Whistle Blower Policy

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

Declaration from Independent Director(s)

The Company has received necessary declaration from Independent Director(s) of the Company under Section 149(7) of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI (LODR) Regulations, 2015 that the Independent Director(s) of the Company meet with the criteria of his Independence laid down in the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Management Discussion and Analysis Report

Management Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the Government (DPE) Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report as Annexure-4.

Particulars of Loans, Guarantees & Investments

In terms of Circular No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India, the Company being a Government Company engaged in Defence production is exempt from Section 186 of the Companies Act, 2013.

Particulars of Employees and Related Disclosures

The provisions of Section 197 of the Companies Act and the relevant Rules regarding particulars of employees drawing remuneration in excess of the limits specified are exempted for Government Company, in view of the Gazette Notification No. GSR 463 (E) dated 5 June 2015 issued by the Ministry of Corporate Affairs, Government of India.

Internal Financial Controls

The Company has in place adequate internal financial controls with reference to financial statements. A detailed note on Internal Financial Controls is provided in the Management Discussion and Analysis Report, which forms part of this report.

Audit Committee

As on 31 March 2023, the Audit Committee comprised of Independent Directors viz., Mr Prafulla Kumar Choudhury, Chairman of the Committee, Dr Shivnath Yadav and Mr Gokulan B as its Members. During the FY 2022-23, all the recommendations made by the Audit Committee were accepted by the Board.

Corporate Governance Report

In terms of Regulation 34 of the SEBI (LODR) Regulations, 2015 and DPE Guidelines, a Report on Corporate Governance along with a Compliance Certificate issued by the Statutory Auditors of the Company is attached with this report as

Annexure-5.

Business Responsibility and Sustainability Report (BR&SR)

The SEBI (LODR) Regulations, 2015 mandated the inclusion of the Business Responsibility & Sustainability Report (BR&SR) as part of the Annual Reports for the top 1,000 listed entities based on market capitalisation. In terms of Regulation 34(2)(f) of Listing Regulations, a BR&SR for the FY 2022-23 describing the initiatives taken by the Company from an Environmental, Social and Governance (ESG) perspective, in the format as specified by SEBI from time to time is attached with this report as Annexure-6.

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

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

Compliance with Secretarial Standards

The Company complies with all applicable mandatory Secretarial Standards issued by the Institute of Company Secretaries of India.

Acknowledgement

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

	For and on behalf of the Board
	Bhanu Prakash Srivastava
Bengaluru	Chairman & Managing Director
1 August 2023	(Additional Charge)