ANNUAL REPORT 2010 - 11

Contents
Description Chairman’s Letter Corporate Vision, Mission, Values and Objectives Board of Directors Principal Executives, Bankers, Auditors The Past Decade Directors’ Report Statement pursuant to Section 212 of the Companies Act 1956 Management Discussion and Analysis Report Corporate Governance Report Auditors’ Report Comments of the C&AG Significant Accounting Policies Balance Sheet Profit and Loss Account Schedules to Financial Statements (1-22) Cash Flow Statement Auditors’ Report on the Consolidated Financial Statements Consolidated Financial Statements Page No. 1 3 4 5 6 7 18 21 28 39 42 44 48 49 50 68 69 70

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ANNUAL REPORT 2010 - 11

Chairman’s Letter

indigenous agencies. 22 % of the turnover was contributed by products using foreign technology. A few of the other highlights are : • The Defence Minister inaugurated the newly set up Product Support Centre at Kalamessery, Kochi, for providing product support to Southern Naval Command. A modern D&E facility with Embedded Systems Lab was started at BEL’s Hyderabad Unit. During FY 2010 - 11, BEL took up some major and prestigious projects like Akash Weapon System, Humsa NG, Integrated Fire Detection and Suppression System for Tanks and Armoured Vehicles, and Coastal Security System for the Indian Coast Guards. Four numbers of India’s first and wholly indigenous Nuclear, Biological and Chemical Recce Vehicles developed by BEL in association with DRDO were delivered to the Indian Army. On the civil business side, Ministry of Home Affairs has nominated us for the creation of the National Population Register for the Country.

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Dear shareholders It is a great pleasure to communicate to you directly once again and to share with you the highlights of the achievements of your Company during the past year and the future outlook for the Company. Highlights of the year In FY 2010-11, new records have been set for order acquisition, revenues, order book, profits and exports. Your Company achieved a turnover of ` 552,969 lakhs in 2010 - 11 as against ` 521,977 lakhs in 2009 - 10, registering a growth of 5.94 %. Exports sales saw a quantum jump from US $ 23.67 millions in 2009 - 10 to US $ 41.53 millions in 2010 - 11, an increase of 75.45 %. The order book more than doubled from ` 1,135,000 lakhs as on 1st April 2010 to ` 2,360,000 lakhs as on 1 April 2011. All the nine manufacturing Units of the Company have performed well and earned profits during the year. Our efforts to streamline our costs and execution capabilities yielded dividends, which resulted in increase of Profit After Tax for 2010-11 to ` 86,147 lakhs from ` 72,087 lakhs last year, an increase of 19.50% in spite of the additional cost of wage revision. R&D continues to be our thrust area and our expenditure on R&D was ` 38,818 lakhs, which is 7 % of the sales revenue. Defence being our mainstay, the sector contributed 80 % to our sales revenue with the balance of 20 % coming from the civilian sector. Indigenously developed products contributed 78% to the turnover out of which 57 % came from in - house developments and 21 % from products developed by other •

You will be happy to know that your Company has received several accolades, the most notable being : • • The Gold trophy for "SCOPE Meritorious Award for Corporate Governance" for the year 2009 - 10. Award for the Top Indian Company under the Electrical and Electronic Equipment, Technology Development Sector for the Dun and Bradstreet – Rolta Corporate Awards 2010. International Aerospace Awards 2011 under the category of "Most Influential Company of the Year" and "Excellence in Innovation".

Future outlook The Govt. of India has put in place a policy for replacing and acquiring weapon systems / platforms for its defence and paramilitary forces. Helped by the steady economic growth in the Country, the Govt. is in a position to provide the required resources too. The Govt’s modernisation drive for its security forces will provide business opportunities for BEL in future. Starting with an all time high order book, we are targeting a turnover of 1

ANNUAL REPORT 2010 - 11 ` 620,000 lakhs during 2011 - 12. As stated before, segments like radar, communications, network centric warfare and weapon systems will drive the Company’s growth. While pursuing our forays into new businesses like nuclear instrumentation, solar / clean energy solutions and homeland security, we are continuing our efforts in forging alliances in the areas of radars for civilian and select defence applications, seekers for missiles, and RF & microwave components. Radars are and will continue to be one of our primary business segments in future also. Another major segment will be defence communication equipments and systems. The weapon systems segment is emerging as a major area along with command and control systems. Electro optics will grow due to its demand from both defence and civil sectors. Defence will continue to be our priority and provide close to 80 % of our revenues while civilian business will continue to provide the balance 20 %. It is extremely important for BEL to stay abreast of technology and develop new products regularly. Thrust on R&D across the Company will continue. I am pleased to inform you that during the last year, your Company developed many new products and systems. Some of the major new products / systems introduced during 2010 - 11 include Akash Weapon System, New Generation Humsa Sonar, Mobile Communication Terminal, and Combat Management Systems for ships. The year 2011 - 12 looks promising as well as challenging. The Defence Sector is increasingly being opened up for private sector participation and changes are being brought into the Defence Purchase Procedure. All this has pushed the Company towards much higher competitiveness and productivity. Apart from strengthening its in - house R&D, the Company is also laying greater emphasis on working closely with DRDO labs, other research institutions and academic institutions for development of new products and systems. This year the Company will work for many strategically important projects like Akash Weapon System, Battlefield Surveillance System, Upgraded Weapon Locating Radar, next generation Electronic Warfare Systems and Coastal Surveillance System. On the exports front, we shall be achieving growth through offsets as well as export of Coastal Security Network for Government of Mauritius. Governance and sustainability Your Company takes pride in constantly adopting and maintaining the highest standards of ethics in all its business activities. The tenets of Corporate Governance are implemented in letter and spirit and the results are obvious through recognition of this fact by SCOPE. A detailed report on compliance with the Corporate Governance guidelines / norms as per Clause 49 of the Listing Agreement with Stock Exchanges and the DPE Guidelines on Corporate Governance for CPSEs forms part of the Directors’ Report. The major principles for fulfilling its social, environmental and economic responsibilities have been integrated and embedded in the core business processes of BEL, and these principles have been incorporated into its strategy for responsible business. Sustainability in BEL is the outcome achieved by balancing the social, environmental and economic impacts of business. This process ensures that the business goals are pursued without compromising any of the three elements. Acknowledgements I deeply appreciate the continuing support of our customers, especially Ministry of Defence and Defence Services, our business associates, shareholders, my colleagues and members of the Board for their support and guidance. I also wish to express my sincere gratitude to all the officers and employees of BEL for their dedication and commitment, which is a major strength for driving growth in the Company. It shall be our continuous endeavour to build on these strengths to face future challenges to continue the journey of profitable growth. Best wishes, Sincerely,

Bangalore 12th August 2011

Ashwani Kumar Datt Chairman & Managing Director

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64 13038 321209 323497 12228 175823 44161 7147 906 39092 68596 23964 44632 8.62 12371 462369 527327 22997 304106 75579 10560 1077 49319 109684 35108 74576 14960 8000 370368 121 157990 111245 242096 227653 313556 360301 378368 93.86 13750 279859 280783 9199 147977 43826 6227 506 44544 46902 15292 31610 8000 8000 115582 3295 104096 75298 101529 66754 84952 113750 122908 39.21 11180 6 .66 11545 552969 552080 38931 313577 104186 12204 43 44886 116115 29968 86147 17280 8000 490571 41 178900 130529 246077 290325 426765 475136 498571 107.88 253.11 The Past Decade (` in lakhs) Particulars Sales & Services Value of Production Other Income Materials Salaries.96 11961 521977 524788 37641 302454 100958 11594 53 42867 104502 32415 72087 15360 8000 424526 73 170217 121221 244871 216836 365629 414625 432526 90. Wages & Benefits Depreciation / Amortisation Interest Manufacturing & Other Expenses (including Excise Duty & Exceptional items) Profit Before Tax Provision For Tax Profit After Tax Dividend Equity Capital Reserves & Surplus Loan Funds Gross Block Cumulative Depreciation / Amortisation Inventory Debtors Working Capital Capital Employed Net Worth Earning per Share (in Rupees) Book Value per share (in Rupees) No.ANNUAL REPORT 2010 .22 472.58 121.79 197.51 153. of Employees 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 194199 202998 2960 108663 36388 4909 2026 25499 28473 8505 19968 4000 8000 73854 8368 86265 66174 94130 62971 59433 79524 77712 24.11 540.14 13572 250802 253639 5511 147907 36761 5528 1197 29141 38616 12555 26061 5600 8000 92997 4075 94165 70943 94795 71224 70441 93663 97486 32.68 623.34 401.96 97.38 12262 395269 401275 19781 213522 51968 8459 80 41780 105247 33431 71816 14400 8000 249231 171 132480 93913 124635 169341 200996 239563 257135 89.960 8000 150008 1536 112928 80994 106496 69912 110903 142832 157637 55.42 12357 410254 411137 27824 206889 65917 9264 25 39736 117130 34456 82674 16560 8000 313295 138 143076 101727 135157 205571 263090 304438 321295 103.77 321.05 12390 353628 345003 11858 185063 43693 7944 2564 32071 85526 27225 58301 11680 8000 194931 881 124031 86993 103714 101769 151777 188817 202705 72.

969.967.94 %.78 86.10 lakhs.68 623.20 521. 2010.59 432. Integrated Communication Network System for ships.00 10.204.17 5.60 100. Biological and Chemical (NBC) Recce Vehicles. The turnover from indigenously developed products is 78%.66 40.01 5. inaugurated BEL’s Product Support Centre at Kalamassery in Kochi. Kerala. Other Highlights Union Defence Minister.65 498.23 43.08 2. designed and developed by DRDO and integrated with NBC instruments at BEL’s Pune Unit.00 90.146. were handed over to the Indian Army on December 21.000 lakhs Proposed Final Dividend @ ` 15. Interest and Tax Interest Depreciation Provision for Tax Profit After Tax Add : Balance brought forward from previous year Less : Amount transferred to Capital Reserve Balance available for Appropriation Interim Dividend @ ` 6 per share on paid up Capital of ` 8.78 86. detects.146. Profit after Tax for the year was ` 86.204.87 1.303.233. an increase of 19. Major Orders Executed Some of the important equipment / systems supplied to customers by your Company during the year include : 3-D Central Acquisition Radar (Rohini). etc.788.408. Battle Field Surveillance Radar.21 0.21 2009-10 524.560.60 per share on paid up Capital of ` 8.11 540.00 41.59 90. Your Directors are pleased to present the 57th Annual Report of the Company. Secure Communication Network. a DRDO lab.146.ANNUAL REPORT 2010 .36 12. Kochi.66 Company’s sales turnover during the year 2010-11 has increased to ` 552. Artillery Combat Command Control System.51 41.10 177.080.969. Distribution of Value of Production for 2010-11 is given below : Amount Percentage (` in lakhs) Materials Employee Cost Other Expenses (Net) Depreciation Interest Provision for Tax Profit After Tax Total 313.85 552.525.25 72.821. Mobile Radar band Electronic Intelligence System.53 million during 2010-11.087. on February 8.800. Video Conferencing.00 2.98 277.415.000. identifies and marks areas of radiological and chemical contamination.000 lakhs Tax on Dividend Transfer to General Reserve Transfer to Capital Reserve Reserves & Surplus Net Worth Earnings Per Share (in `) Book Value Per Share (in `) 552.32 lakhs from ` 521.525.000.570.45% from US $ 23.00 7 . The Centre has been set up to provide waterfront support for the Southern Naval Command and to support outsourcing of Naval system projects to BEL’s outsourcing partner. KELTRON. Software Development Lab.67 million in the previous year to US $ 41.36 29.362.186. All the nine manufacturing Units of your Company performed well and earned profits during the year.00 12.967. Exports turnover has registered a growth of 75.32 128. registering a growth of 5. 2010. Performance Highlights A summary of the Company’s financial results is given below : (` in lakhs) 2010-11 Value of Production Turnover (Gross) Profit Before Depreciation. Four numbers of India’s first wholly indigenous Nuclear.977. Mobile Communication Terminal. Shipborne Electronic Warfare System.34 552.11 Directors’ Report To the Members. Fire Control Systems.569.23 29.570.080.34 56.955.95 104. together with the Audited Accounts for the financial year ended 31st March 2011.84 90.00 2.50 % in spite of additional burden due to revision of wages for workmen. The NBC Recce Vehicle surveys.80 18. The facility is equipped with Embedded Systems Lab. inaugurated a modern D&E facility at BEL’s Hyderabad Unit on December 24.087.77 424.150. Passive Night Vision Weapon Sight and Doppler Weather Radar.00 12.594.576. 2011. Dr V K Saraswat.77 249. Surveillance Radar Element.23 32.65 107.06 53.800.40 116. Mr A K Antony.48 11. Communication Systems and Integration Labs. It is also envisaged to co-ordinate equipment supply and support to the Air Defence Ship Project at Cochin Shipyard Limited and to support Sonar development projects at the National Physical & Oceanographic Laboratory (NPOL).43 15.79 40.236.17 4. Handheld UHF Radios.977.22 43. L-Band Surveillance Radar.480.38 4.40 lakhs in 2009-10.85 191. Scientific Advisor to Defence Minister. Supplies to the Defence Services contributed to 80% of the turnover.85 lakhs as against ` 72.98 490.

It is a ground surveillance and acquisition radar capable of automatically detecting and displaying diverse moving targets such as pedestrians. Geographical Information System (GIS) and Global Positioning System (GPS) to achieve quick and accurate fire. cyclones and other severe weather conditions. The operator interface is user-friendly with minimum number of controls.It is an S band Air Traffic Control Radar suited for Terminal Control applications with a range of 130 km. Very Short Range Air Defence (VSHORAD) and the Mine Counter Measures Vessel (MCMV) program. meant for long-range weather surveillance (up to 500 km). etc.It is a UHF Handheld Radio. fitted in Armored vehicle. Surveillance Radar Element . Air Defence Control & Reporting System . US $ 300 million is expected in the next 5-7 years from now. with built-in High Grade Digital Secrecy. It has an integrated IFF (Identify Friend or Foe) with co-mounted antenna and has been developed jointly with LRDE for the Indian Air Force.D surveillance radar in S band.the . It can forecast storms. It has been developed by DRDO and engineered by BEL with indigenous technology. It has been developed by BEL with indigenous technology. Interface is provided for handset / headgear and Crypto key loading.11 Among the many projects executed during the year. Battle Field Surveillance Radar .It is a long-range surveillance radar. VPS Mk III . BEL expects to address a business of about ` 60.ANNUAL REPORT 2010 . It is designed for use onboard large and medium Naval ships and for shore establishments and provides long . It has higher threat-handling capability and improved DF accuracy. The system has been developed by BEL with indigenous technology and security solution from DRDO.The system automates artillery functions with the use of latest technologies such as Tactical Computers integrated with communication capabilities.It is a 3. Ground Based Mobile ELINT . It detects and automatically tracks a large number of aircraft within Local Flying Area under all weather conditions and is configured for high availability.art system has been developed by BEL to be installed onboard IN ships for short / medium range Gun Fire Control using high accuracy tracking radar and electro optic tracking system.It is an S-band Radar.flying helicopters. ranges and roles. It uses Pulse Doppler techniques for accuracy and has been developed as a national initiative involving IMD. Combat Net Radio . ISRO and BEL.This system enables internal and external communication for Naval ships. § The business plan for setting up a JVC with BHEL for manufacture of Solar PV wafers. compact and light .It is a lightweight ESM system for helicopters of the Navy.Medium Range (BFSRMR) with Mast . vehicles. The system has location-fixing and Radar Finger Printing capability. low . It has stabilised hydraulic-driven antenna platforms. § BEL is in discussions with a reputed foreign OEM for forming an Indian Joint Venture in the area of civilian radars & select defence radars.000 lakhs in the next five years from this initiative.It is a VHF Frequency Hopping Communication Radio. 3-D Central Acquisition Radar (Rohini) . an Offset business of approx. It is a fully solid state modular transmitter with integrated IFF. The radio set is provided with various types of antenna for use in different types of terrains. It has been developed by BEL with indigenous technology. Business Initiatives Business initiatives during the year include : § BEL 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.weight. Advanced Naval Gun Fire Control System (LYNX U-1) This state .of . the following merit special attention : Artillery Combat Command Control System . From these MoUs.CCS Mk III .ADC&RS is a Command & Control System for integration of various Radars and other Army Systems for Air Defence. BEL has discussed and signed MoUs with OEMs participating in these programs. It has been developed with indigenous technology by DRDO and engineered by BEL.range air warning and target detection. 8 . Doppler Weather Radar . § As a proactive step for addressing the Offset business for defence programmes like the Medium Multi-Role Combat Aircraft (MMRCA). Composite Communication System .An Electronic Intelligence Gathering System (Radar band) used during peacetime. Naval Heliborne ESM System . cells and modules has been finalised. tanks. RAWL 02 Mk III .

Germany. V / UHF search receivers. X – Ray tube. etc. out of which orders worth ` 560. Finance During the financial year 2010-11.000 lakhs per year in four to five years from the starting of these companies. The inventory as on 31st March 2011 works out to 164 days of the Value of Production (DPE) for the year 2010-11 as against the corresponding position at 172 days as on 31st March 2010. USA. France. PCB assembly. Sri Lanka. (b) Non-realisation of bills due to budgetary constraints of the Customers. Based on the user requirements many changes have been incorporated in the online ERP system which should help in better information flow to all concerned.871 lakhs (Net) as on 31st March 2010.836 lakhs (Net) as on 31st March 2010. Switzerland. etc. With the above initiatives the Company expects to achieve significant increase in export turnover in the coming years. Italy. registering an impressive growth of 75. IFF Interrogator. The position of sundry debtors as on 31st March 2011 was ` 290. USA and Northrop Grumman. It has a very significant opportunity in the offset business related to various platforms such as : l was ` 2. From these JVCs. USA.000 lakhs. Indonesia. This has been possible through efficient cash management which has ensured that the Company continues to be debt free. The debtors as on 31st March 2011 works out to 192 days of the Sales for the year 2010-11 with the corresponding position at 152 days as on 31st March 2010. Cable Harness. BEL has signed MoU / NDAs with various OEMs for offsets in respect of RFPs issued by Indian MoD. development and manufacture of RF and Microwave components and subsystems. Composite Communication System. as against ` 244. It has identified African and South East Asian countries for special focus on product exports. The increase in sundry debtors as at the end of the financial year is mainly due to the following reasons : (a) Higher sales in the last quarter. The inventory position of the Company as on 31st March 2011 was ` 246. Canada. The Company has been able to retain the highest rating by ICRA for both short term and long term sanctioned bank limits. The range of products and sub-assemblies exported includes Lynx II. Shelters. your Company has met all its fund requirements towards additional investments on Capital equipments and incremental working capital needs without any borrowing.45% over previous year export of US $ 23. The Company does not have any public deposit scheme at Air platform l Naval platform l Radar and Missile platforms l Gun platforms Your Company is closely working with various major foreign Aerospace and Defence companies to secure business under the mandatory Offset clause in the RFPs for Indian Defence Procurement. Radar Finger Printing system. Efforts will be made during the current year to reduce the inventory levels further without compromising the production plan for the forthcoming year. particularly in March as compared to the corresponding period of the previous year. Malaysia. Countries to which the products were exported include Italy. Versatile Communication System (VCS). Exports Your Company’s export turnover during the year was US $ 41. The balance will get executed in 2012 . Mechanical assemblies. Namibia. The Company plans to increase its exports through direct exports and offsets. (c) Payment terms in the sale contracts where the release of money is linked to certain specific milestones. LRF. Israel. Components.360. Radar Warning Receivers.67 million.000 lakhs are executable during 2011-12.11 § BEL is working on establishing a Company for the design. BEL has over the years taken a number of initiatives to increase exports. which will help in continuing to secure the best rates for any of the services.325 lakhs (Net) as against ` 216. Zimbabwe. UK. A very significant portion of the export is related to offset.53 Million.077 lakhs (Net). BEL expects a turnover of about ` 200.ANNUAL REPORT 2010 . Order Book Position The order book position of your Company as on 1 April 2011 9 . availed from the consortium banks. The debtors realisation will continue to be closely monitored to ensure speedy collection which should result in a reduction in debtors in number of days of sales by the end of this financial year. etc. Night Vision Devices.13 and beyond. ESM system. even after delivery of the items like Harbor Acceptance Trials / Sea Acceptance Trials. Boeing. The Company executed large offset contracts for companies such as M/s Fincantieri. Philippines.

The analysis of turn over of the Company for the year 2010-11 indicates that 57% of the turn over is due to BEL designed products. (c) ATM based Integrated Shipboard Data Network : This is a multi-services shipboard network designed to cover all voice traffic. The system has been developed with technology transfer from DRDO.55 lakhs as on 31st March 2011. namely. The system provides communication services to Auto Subscribers and ISDN subscribers and can be interfaced to other exchanges. which activates the audiovisual alarm and actuates the squib of the fire extinguishers to extinguish the fire. 34 deposits amounting to ` 36. Semi Ruggedised Automatic Exchange MK-II. semi-mobile and static vulnerable forces and areas. video and data. (b) New Generation Advanced Hull Mounted Sonar : This is an advanced version of the existing HUMSA sonar for fitment in naval ships.ANNUAL REPORT 2010 . integrate and present a comprehensive tactical picture of the area of operation to provide the decision support to the Command.11 present. Remaining past deposits of ` 2. Electronic Warfare. Fire Control Systems. Research & Development Research and Development is the core strength of BEL and focused attention was given during the year for planning and reviewing of development of technology modules and products. real time video and traditional data communications onto a single broadband infrastructure. New Generation HUMSA Sonar. Combat Management System. (f) Combat Management System : This system facilitates automatic handling of tactical data from ship’s various sensors including helicopters / aircrafts in the fleet through data link to collate. Civilian equipment & systems and Components during the year 2010-11. (d) Semi Ruggedised Automatic Exchange MK-II : This semi-ruggedised Automatic Exchange is an Automatic Telephone Exchange designed to meet communication requirements of an Army unit or formation. 10 . Mobile Communication Terminal. Low Power Jammer. Missile Systems. During 2010 .05 lakhs as on 31st March 2011 is unclaimed. The system is capable of automatic tracking of multiple targets simultaneously and provides long range detection of threats. The system integrates all weapons. replay. other national research and development agencies and academic institutes has been further strengthened. sensors and communication services on board the naval ship onto the single broadband network and provides integrated and simultaneous transmission of voice. Of these. the R&D Divisions of BEL have completed development of more than 35 new products. Schedule No. The entire amount of public deposits outstanding as on 31st March 2011 is included in the current liabilities. Central-D&E and two Central Research Laboratories of the Company supported the D&E Divisions of all the units by way of developing core technology modules and software required for the development of products and systems. recording. localizing. Encryption. Development & Engineering (D&E) Divisions attached to the Strategic Business Units of Bangalore and Other Units outside Bangalore concentrated on the development of products and associated technologies in their respective areas of business segments. The system has been developed with technology transfer from DRDO.11. IR Sensors of the detector unit detects the fire in the crew compartment and the control logic sends the confirmation of fire to Master Control Unit. 12 of the Balance sheet. The system is capable of detecting. GSM and extended GSM bands. Brief information about some of the introduced products is given below : (a) Akash Weapon System : This is a surface-to-air medium range air defence missile system which provides air defence against multifarious air threats to mobile. ATM based Integrated Shipboard Data Network. The system is capable of simultaneous engagement of many targets with multiple missiles. Apart from in-house efforts. Tank & Weapon electronics. Communication. analysis and jamming of hostile transmissions in V / UHF. the matured past public deposits with the Company was ` 38. Radars. Avionics. Naval Systems. IRLM Radio etc. Optoelectronics. monitoring. Integrated Fire Detection and Suppression System for BMP-2 / 2K. However.50 lakhs are claimed but not paid as these accounts are frozen on advice by Karnataka Lok Ayukta. Command Control Systems. detection. BEL’s association with DRDO. The system is portable as well as designed for vehicle mounting. process. 21% of the turn over due to DRDO and other indigenous agencies developed products and remaining 22% is due to products for which technologies were acquired through foreign ToTs. (e) Low Power Jammer : This is a light vehicle based communication Electronic Warfare System capable of doing rapid search. Some of the new products / systems introduced during the year include Akash Weapon System. classifying and tracking under water targets in both active and passive modes. (g) Integrated Fire Detection and Suppression System : This is a micro controller based fire detection and suppression system for armored vehicles and tanks. Research & Product development has been carried out in all the business segments.

BEL Quality Institute has been imparting training on Six Sigma since July 1999 and has trained 1. Reliability & Maintainability are essential features of a well-designed product. customer related measurement and external audit / assessment scores. During the year 2010-11. a futuristic communication equipment. The main attributes of this Index are procurement efficiency. 11 .ANNUAL REPORT 2010 . MILCOM SBU and Kotdwara Unit achieved Level-II recognition i. A number of joint development programs with DRDO labs also have been initiated. Chennai. Ø Introduction of lean manufacturing concepts to achieve on-time delivery. STQC Directorate. New Product Development : Considering the need for developing new technologies and products to meet the requirements of customers. Medium power Radar. Ø Reduction in cycle time of key business processes. a total of 28 engineers were certified as Reliability Professionals by the Centre for Reliability. Application of the principles of R&M at design stage can ensure robustness of the product during its entire life cycle. 18 processes were identified and brought under SPC. In order to monitor the quality performance of various Units and SBUs of the Company. ‘Commendation Certificate for Significant Achievement’. control and improvement technique. Battle field Surveillance System. employee involvement.e.264 officers so far. Adoption of this Model since 2002 has helped the Company in understanding the expectations of various stakeholders and in enhancing their satisfaction level. manufacturing efficiency. Resources have been augmented and enhanced budgets have been sanctioned for R & D to realise the plans. Following Awards have been received by R&D teams during the year : Ø ELCINA-EFY Award (Certificate of Merit) for Outstanding achievements in R&D for 2009-10 Ø SODET Award (Gold) for Technology Innovation (2009-10) Ø Raksha Mantri’s Awards for Import Substitution. 134 Six Sigma projects were completed. Export Manufacturing SBU and Panchkula Unit received ‘Commendation Certificate for Strong Commitment to Excel’ under this Award scheme. Quality The Company adopted the Total Quality Management (TQM) philosophy in the year 1990 under the acronym “TORQUE” which stands for Total Organisational Quality Enhancement. All the key and special manufacturing processes in the Company are being brought under Statistical Process Control (SPC) which is an on-line process monitoring. During the year 2010-11. Design Effort and Innovation (2008-09) Ø Indian Semiconductor Association’s Technovation Award for the development of Best Electronic Product of the year 2011 in the Aerospace sector for developing High Voltage Relay Driver ASIC. a Quality Index metric has been developed during the year 2010-11. Ø Key processes stabilisation and capability improvement through Statistical Process Control (SPC) techniques. Military Wimax. Software Defined Radio. During the year 2010-11. Following are the thrust areas of TORQUE in BEL to improve operational excellence : Ø Deployment of Reliability & Maintainability concepts during design stage of product development. Technology roadmap and a three year R&D plan have been prepared to set goals for all R&D divisions. During the year 2010-11. process improvement and customer satisfaction. Ø Improvement in Quality of design through DFSS projects. TORQUE is based on the premise that the quality of products and services is not only the responsibility of the production / shop floor personnel. Surface Surveillance Radar.11 Scientists from Central Research Laboratories and other R&D divisions of BEL have contributed 49 technical papers in the national and international journals during the year. Ø Employee motivation and empowerment through introduction of QCC and Suggestion Schemes. Combat Management System for different class of ships. Keeping this in mind the Company has embarked on getting its design engineers certified as reliability professional from Centre for Reliability. but other support services also have a role to play in meeting and exceeding customer’s expectations through supply of quality products and services. and Tablet PCs are some of the important projects whose development will be completed in the next one to two years. Ø Customer satisfaction surveys to measure and improve satisfaction level of customers. Control Charts and Process Capability studies of these processes have been put into practice. Company has adopted CII-EXIM Bank Business Excellence Model to improve its overall Business and strategic excellence. Radio Relays for Military backbone networks. Components SBU. Ø Continual improvement of products and processes through deployment of six sigma methodology. five of the BEL Units / SBUs participated in the ‘CII-EXIM Bank Award for Business Excellence’. resulting in cost reduction. BEL has initiated a number of actions for providing the necessary thrust.

Accounting of Earnest Money Deposit.180 persons as on 31st March 2011 as against 11. Another award won by the Company during the year is ‘QCI-DL Shah National Award on Economics of Quality’ under the Category ‘Projects submitted by Public Sector & Government Enterprises’. Employee Relation & Welfare Employee relations continued to be conducive marked by industrial harmony and mutual trust. Intrusion Prevention System are under implementation for secure Internet access by customers and vendors to SRM and CRM servers. A number of process improvements such as automation of accounting of inter unit transactions. l l l l l l Security measures. such as. corrective actions are taken to improve our processes so as to enhance the satisfaction level of customers. The award has been instituted with a view to establish that bottom line benefits are achieved through quality initiatives. some of which were SRM version 5. This survey is being conducted through a third party to bring in objectivity. Reverse Proxy. BEL won the ELCINA-EFY Award for Excellence in Quality (first prize) for the year 2010-11. Implementation of SAP R / 3 including Payroll Product Lifecycle Management module at all Units and Offices of BEL were completed in a phased manner by July 2008. Export Documentation etc. security measures.e.545 as on 31st March 2010. Women employees were 2. and Supply Chain Management (SCM) are in final stages of implementation and testing. Regular interactions take place among the management. allowances and perquisites for workmen were discussed and settled during the year for a period of 10 years w. SAP Implementation BEL has undertaken implementation of SAP across all the Units / Offices. checks and validations have been incorporated in the system based on user feedback. Firewall and Intrusion Prevention Systems have been implemented to secure Data Centre and DR site which are in BEL’s Intranet. A detailed write up on Company’s HR philosophy and specific HR initiatives during the year is provided separately in the Management Discussion and Analysis Report attached.2007. This module facilitates e-procurement with 2 Part Bidding. opening of Bids by Tender Opening Committee etc. A number of improvements. 12 . executives and the workmen through the apex forums. During the year 2010 . Web Application Firewall. The Company-wide per capita training man-days for the year 2010-11 was 3. scientists and other professionals were inducted during the year. Of this. the Joint Standing Committee consisting of Negotiating Trade Unions and Apex Joint Council consisting of Officers Associations and TC Cadre and also separately with respective Trade Unions and Officers Associations. 1. viz. Various programmes were organised for the benefit of all sections of employees and their families. bar code for issue and accounting of materials from stores etc.37 as against 3 in 2009-10. Pilot implementation of the following new dimension modules of SAP was done in 2010-11. Human Resources Your Company employed 11. Revised wage scales. Overall customer satisfaction index was found to be 80. 3. Customer Relationship Management (CRM). A total of 353 executives consisting of engineers.0 to implement Procurement for Public Sector (PPS) module. the Company has been conducting customer satisfaction surveys every year. Similarly. Based on the feedback obtained from the survey. Standard SAP package does not cater to several requirements such as Consignment Receipt Report.366 as on 31st March 2011.11 the customer satisfaction survey was conducted for five products.1. These features have been developed in SAP platform. Firewall. various management development programmes as well as technology programmes were organised during 2010-11 through premier training institutions for all grades of executives.ANNUAL REPORT 2010 .f. The particulars of SC / ST and other categories of employees as on 31st March 2011 are as under : Category of Employees Scheduled Caste Scheduled Tribe OBC Ex-Servicemen Physically Handicapped Executives Non-Executives Group ‘A’ Group ‘B’ Group ‘C’ Group ‘D’ 796 64 1172 115 235 8 125 29 782 67 934 66 91 149 309 113 79 7 164 18 Supplier Relationship Management (SRM) Knowledge Management (C Folders) Employee Self Service (ESS) Strategic Enterprise Management (SEM) Consolidation Business Objects Reporting Tool Procurement for Public Sector (PPS) module In order to address the learning and organisation development needs. each belonging to different Unit / SBU. such as.11 As a part of Company’s endeavor to enhance the customer satisfaction level.670 were engineers / scientists.52 %.0 was upgraded to SRM version 7.

Sustenance of Zero discharge.ANNUAL REPORT 2010 . Import Substitution. verdant surroundings and afforestation are a way of life in BEL.. Welfare programmes organised by BEL Hospital during the year includes : Pulse Polio Immunisation programme. Educational institutions run by the Company for education of children of employees and also of neighboring villages. Based on the above guidelines. Low VOC metal finishing operation (Poly urethane) and anti IR coating system are adopted in the process to contain pollution. The workforce. Technology Development sector for the Dun & Bradstreet-Rolta Corporate Awards 2010. Technology Development & Innovation for the year 2007-08. Further our Corporate Standards published guidelines connected to environment . many of the RoHS compliant processes have been introduced in PCB manufacturing and metal finishing process. A Senior Technical Assistant of Bangalore Complex has been selected for the Prime Minister’s Shram Ratna for the year 2008.friendly Chorine . besides introduction of eco . Various summer camps / sports programmes were organised for the employees’ children. Ø Raksha Mantri’s Awards in the categories of Best Performing Division. and to address matters specific to these sections of employees. components and manufacturing process to be used across the Company. safety matters. Eye camps for employees.11 exclusively for women employees. BEL Hospital at Bangalore extends outpatient medical treatment to the residents of neighbouring villages and employees of BEL associate institutions / societies in addition to its own employees.free copier paper for photocopying and laser printing has been standardised for lower environmental impact. Various cultural programmes were organised by the Fine Arts Clubs in the Units for recreation of employees and their families. their dependent family members as well as retired employees and their spouses. Even this low level of emission is checked through stack monitoring and with appropriate air pollution control equipments. use of renewable energy and hazardous waste reduction. respectively. Environment Management Over the years. performed well during the year. Shram Vir / Veerangana and Shram Shree. energy conservation. Our Research and Development Departments search and introduce environment . Some of the initiatives taken are presented below : Cleaner Technology Relentless effort to introduce cleaner technologies in manufacturing processes has reduced the generation of pollutants to a large extent. Your Company’s comprehensive medical scheme covers all employees.friendly materials. Corporate standards have already commenced standardisation and introduction of many RoHS (Restriction of Certain Hazardous Substance) items complaint to European and other International directives. BEL has recognised that a more effective contribution to clean environment begins at design stage itself.Gynaecology camp. Eco . SC / ST employees and differently abled employees to improve their awareness in legal issues. Ø Selected as the top Indian Company under the Electrical & Electronic Equipment. aware of the consequences of environmental degradation. Legal compliance. The Company. passionately participates in our environmental endeavours to promote an environment free of pollution. Uro .friendly components. Design Effort and Innovation for the year 2008-09. addresses environmental issues in a wider perspective with a firm resolve to reduce all forms of pollution. BEL Hospital also conducted Growth and Development medical camp for the kids between 9 to 11 years of age and prizes were awarded to the healthy children. commitment to maintaining clean and green environment has taken deep roots in the organisation as evidenced by improved results in prevention of pollution. 2006 and 2007 in the categories of Shram Bhushan. etc. Shram Devi. 13 . measurement and monitoring. Ø International Aerospace Awards 2011 under the categories of ‘Most Influential Company of the Year’ and ‘Excellence in Innovation’. their dependents and retired employees / their spouses. Ø SCOPE Award for R&D. etc. Emission To Air Emission to air from processes is much below the pollution control norms. their dependants and retired employees covered under BERECHS. Ø Gold prize in the Heavy Industries category of DNA-Dainik Bhaskar India Pride Award (2010) for ‘Excellence in PSUs’. Ø employees received the prestigious Prime Minister’s Shram BEL Awards for the year 2005. Low smoke halogen cables have been introduced in manufacturing of Naval based electronic equipments. with its ISO 14001 (2004) certified Environmental Management System. screening programmes for Respiratory diseases.friendly processes and materials. Awards & Recognition Important Awards and recognitions received during the year by your Company and its employees include : Ø Standing Conference of Public Enterprises (SCOPE) Meritorious Award for Corporate Governance for the year 2009-10. water conservation.

Rainwater harvesting and innovative recharging of bore wells enable us to collect the runoff water and recharge the ground water table. is annexed to this report. By rainwater harvesting and recharging of bore wells ground water yield has improved. 5/12/2007-CL-III dated 8th February 2011. These Tubes are supplied to the Defence customers and also used in the Night Vision Devices manufactured by BEL. a significant move was made in eliminating the hazards in storing inflammable gas by changing over from LPG bullet system to LPG manifold system. BEL equally respects the well being of its workforce through OHSAS 18001(2007) implementation. Solid Waste Management BEL is taking utmost care by disposing of Municipal Solid Waste in a scientific manner.11 The results are substantiated with ambient air quality measured at different locations within the factory.43 lakhs in the previous year. Annual Accounts of the Subsidiary Company. BEL has been awarded ‘Excellent Water Management Industry’ under ‘Within the Fence’ competition and ‘Efficient Water Management Industry’ under ‘Beyond the Fence’ by CII – Godrej in 2010-11. sodium hypochlorite and sodium Meta bisulphate in place of lime.ANNUAL REPORT 2010 .11 against 906 ML in 2009 . Hence.06 lakhs as against the turnover of ` 5. are not attached to the Balance Sheet of BEL.10. We have an in-built capacity to treat about 900 Kilo Litres of process wastewater per day (KLPD). Presently such waste is sent for processing at a well-established solid waste treatment facility in Bangalore. Tubes). 5/12/2007-CL-III dated 8th February 2011 is also provided in this Annual Report. BELOP manufactures mainly Image Intensifier Tubes (I.I. Any investor interested to inspect the same may please contact the Company Secretary of BEL or BELOP. use of sodium hydrides.48 lakhs in the previous year. the information required to be disclosed as per the directions contained in the MCA Circular No. The Annual Accounts of BELOP are kept for inspection by investors at the registered office of BEL and BELOP. There is a drastic reduction in sludge-generation as a result of several process improvements carried out. BELOP achieved Profit After Tax of ` 445. Biomedical Waste Biomedical wastes generated in BEL hospital and medical centres are collected and disposed of scientifically as per regulatory guidelines. Not to leave out any possible improvement opportunity. OHSAS 18001(2007) In addition to caring for the environment. BEL Optronic Devices Ltd (BELOP) recorded a turnover of ` 5. The large-scale rainwater-harvesting reservoir at Bangalore unit has a capacity of 170 million litres with expected annual yield of around 234 million litres. Further. The Company has availed the general exemption under Section 212(8) of the Companies Act 1956 granted vide Ministry of Corporate Affairs Circular No. Water Pollution Waste water generated in the processes are treated to meet reusable standards and recycled for production purpose. Hazardous wastes generated are disposed of scientifically as per the direction of the State Pollution Control Board. help in reduction of large volume of hazardous sludge. bleaching powder and ferrous sulphate. 14 . We have an in-built capacity to treat about 1800 Kilo Litres of domestic waste water per day (KLPD) at Bangalore Complex. Hazardous Waste Management System By introduction of appropriate chemicals that generate less hazardous sludge in detoxification of wastewater and by adaption of cleaner technology. In the same way domestic wastewater generated in the factory and colony is treated and recycled for horticulture purpose. Our consumption of potable water stood at 888 ML in 2010 . Subsidiary / Joint Ventures Your Company’s subsidiary at Pune. BEL was quick enough to understand the issues posed by unscientific methods of disposal of municipal and other solid waste. hazardous waste generation has been reduced at the process level itself. Besides introduction of Cyanide-free Zinc and Copper plating processes. which is mainly due to implementation of number of water conservation projects. A copy of the Annual Accounts of BELOP and the related information will be made available upon request by any member of BEL or BELOP. BELOP. A statement as per Section 212 of the Act relating to the Subsidiary Company.236. Water Management There is a consistent reduction of water consumption every year in the past ten years.23 lakhs as against ` 227. On Site Emergency Plan and Systems In our effort to reduce the impact of storage of hazardous materials. Lead fume extraction systems have been introduced at soldering stations to prevent release of fumes containing lead and flux vapour to atmosphere.874. BEL Optronic Devices Ltd.

former Secretary. IAS (Retd. Official Language Implementation is a continuous process in the Company.07. Ltd.754. Mumbai on 25th June 2010. 2 Executives have been trained in the Principles of Natural Justice & Domestic Enquiry Training Programme (for Dy.95 lakhs in the previous year. Hindi workshops for those having working knowledge in Hindi were conducted. As per CVC’s recommendation. two more Units. viz. The Company has also revised its Works Contract Manual and issued an Office Order on 09.8% of the Executives of the Company have filed their Annual Property Returns.608.2010 for adoption by all Units of BEL. Your Company is committed to adhere with the OL policies of the Government of India.).com). 11 Works Contracts and 16 high value POs have been inspected by in-house inspection teams. Action plan has been made for Unicode activation on all the PCs Company wide and training sessions covering Executives and Employees. § Vendor Payments Information System is made available on BEL website. During the year 219 Executives and 15 Non-executives have taken part in Vigilance Awareness Training Programme. BEL has revised the Sub Contract Procedure and issued an Office Order on 01. § Details of awarded Purchase Orders / Sub Contract Orders for production items with a threshold value of Rs. total 11 Units / Offices have been notified under rule 10 (4) of OL rules. BEL has appointed Mr N K Sinha. and action is in progress to close down this Company. viz. GE BE Pvt Ltd achieved a turnover of ` 44. In terms of CVC’s guidelines for Leveraging Technology to ensure transparency through effective use of website. During the year. As per the CVC / CTE Guidelines.239. In addition to the above. During the year. Planning Commission and former Chairman.ANNUAL REPORT 2010 . During 2010-11. The JVC is presently in shell stage with no business transactions being effected. GE BE Pvt Ltd. 5 lakhs are being published on BEL website.928. BEL has adopted Integrity Pact on 31. 99. USA.20 lakhs as against ` 50. Implementation of Official Language The Committee of Parliament on Official Language visited BEL.. Orders have been issued under rule 8 (4) of OL Rules for those having proficiency in Hindi to do their Official work in Hindi. § Details of awarded Contracts / Purchase Orders valuing more than Rs. Consolidated Accounts Consolidated Financial Statements of your Company and its Subsidiary and Joint Venture Companies are attached to this Report. 2630 regular / surprise inspections were conducted. The JVC declared 100% dividend for the year 2010-11 and accordingly BEL received ` 260 lakhs as dividend from this JVC on BEL’s share of investment. 39 Executives & 32 Non Executives working in sensitive areas for 3 years and above have been moved to different posts. The other JVC. E-procurement is under development and it is expected to be implemented shortly. service contracts.79 lakhs as against ` 6.. One Crore and above are being published on BEL website. BEL Multitone Pvt. install and service Private Paging Systems and Pagers.bel-india. viz. the following information has been made available in the BEL website : § Application forms for Registration of Subcontractors / Vendors online for being included in the Approved Vendors List and applications for recruitment have also been facilitated online.2010 for all Orders / Contracts of value ` 20 Crores and above. 1400 Purchase Orders / Contracts and 451 high value Orders / Contracts were reviewed / scrutinised during the year and found to be in order. Ghaziabad Unit on 31st May 2010 and BEL Regional Office. In addition to revised Purchase Procedure Manual released during December 2009.11 The Joint Venture Company (JVC) with General Electric. Mgrs.. The Profit After Tax was ` 5. capital items and non-production items are being published on BEL website. Vigilance The performance of Vigilance Department during 2010-11 has been satisfactory. & above).. jointly promoted by BEL and Multitone plc. UK was set up to supply. a new Vigilance page has been put on BEL website (www. BEL supplies some parts required for the products manufactured by this JVC. 15 . PESB as one of the IEM for BEL. With this.07.2010 for adoption by all Units of BEL. Process is on for giving Indian names for all BEL Products. manufacturing CT Max and other latest version X-Ray Tubes continues to perform well.33 lakhs in the previous year. § Details of awarded Contracts / Purchase Orders issued on nomination / single tender basis value exceeding Rs. 10 lakhs in respect of works contracts. as there are no business prospects for paging systems in the Country.07. Bangalore Complex and Hyderabad Unit were notified under rule 10 (4) of OL rules. 2 teams for Inspection of Works Contracts and 2 teams for Inspection of Purchase Orders have been constituted.

(iii) that the directors have taken proper and sufficient care for the maintenance of adequate accounting records 16 . Bangalore.Chancellor. DRDO and (v) Prof R Venkata Rao. former Chairman. were appointed as Branch Auditors of Ghaziabad.11 Implementation of RTI Act The information required to be provided to citizens under Section 4(1)(b) of the RTI Act 2005 has been posted on the website of Company. Bangalore. Chartered Accountants. VM.f. Dr U D Choubey. Vice . Chartered Accountants. Dr M B Athreya. M/s Argade Shyam & Co. PVSM. AVSM. The SCOPE Awards 2009 . Subsequently. a well known Management Consultant. Guntur were reappointed as Branch Auditors for Machilipatnam Unit for 2010 . During the year 2010-11 the Company received and attended to 184 requests for information under RTIA. 1956 on the Annual Accounts are appended to this report.e. former Chief Controller (R&D). (i) Prof Anurag Kumar. Ministry of Defence also as one more Permanent Special Invitee to BEL Board Meetings. pay scales. 20th Dec 2010. necessary explanation for departure has been given in Note No. DG. NTPC. rules.. Hyderabad and Chennai Units and Corporate Office. Pune were reappointed as Branch Auditors for Pune and Taloja Units for 2010-11. Auditors’ Report Auditors’ Report on the Annual Accounts for the financial year 2010 .11. The information posted on the website contains general information about the Company. SCOPE and Prof B K Srivastava and his team of professors from International Management Institute. VM.10 were decided by an Independent panel of Judges under the Chairmanship of Justice P N Bhagwati. Mr M A Pathan. IOC. manuals and records held by BEL. Mr C P Jain. Chartered Accountants. Chartered Accountants. Government has nominated Mr P K Kataria. M/s N Koteswara Rao & Co. former Chief Justice of India and included Dr Abid Hussain.ANNUAL REPORT 2010 . former Secretary to Government of India. regulations.bel-india. procedure for requesting additional information about the Company by citizens and associated request formats. Government has nominated Air Marshal N A K Browne. former CMD. ADC. 18 of the Notes to Accounts (Schedule 21) . (ii) that the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and a fair view of the state of affairs of the Company at the end of the financial year and of the Profit of the Company for the year . New Delhi. Guidelines on Corporate Governance for Central Public Enterprises. in accordance with the provisions of the Companies Act 1956 for safeguarding the Assets of the Company and for preventing and detecting fraud and other irregularities . 1956 your Directors state : (i) that in the preparation of the annual accounts.com. is annexed to this Report. Chennai as Statutory Auditors for the year 2010 .11. A report on Corporate Governance along with a Compliance Certificate from the Auditors as prescribed under the Listing Agreements with the Stock Exchanges on which BEL’s shares are listed as well as Govt..11 and Comments of the Comptroller & Auditor General of India under section 619(4) of the Companies Act. former Chairman. www.10. ADC. M/s Mittal Gupta & Co. information about decisionmaking. (iii) Prof G Madhavan Nair. former Ambassador to USA. Five Independent Directors. IISc. Addl. directory of the Company’s officers. Financial Adviser & Joint Secretary. ISRO. viz. (iv) that the directors have prepared the annual accounts on a going concern basis. Corporate Governance Your Directors are happy to inform you that your Company has won the Standing Conference of Public Enterprises (SCOPE) Award for Corporate Governance 2009 . the Comptroller and Auditor General of India re-appointed M/s R G N Price & Co. Panchkula and Kotdwara Units for 2010 . Professor. Vice Chief of Air Staff as Permanent Special Invitee to BEL Board Meetings. powers and duties of employees. Vice Chief of Air Staff and Permanent Special Invitee to BEL Board Meetings exited the Board on his retirement from Service on 31st Dec 2010. Directorate Following changes took place in the Directorate of your Company since the last report. PVSM. Auditors Pursuant to Section 619(2) of the Companies Act 1956. (ii) Dr S N Dash. (iv) Mr N Sitaram. Directors’ Responsibility Statement Pursuant to the provisions under Section 217(2AA) of the Companies Act.11 for audit of accounts of Bangalore Complex. Air Marshal P K Barbora. the applicable Accounting Standards have been followed and in respect of Accounting Standard 17. National Law School of India University. have been appointed w.

Ministry of Defence. The Board of Directors also wishes to place on record its 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 your Company in the coming years. the Indian Air Force. Departments of Defence Place : Bangalore Date : 12th August 2011 Production.11 Management Discussion and Analysis Report Management Discussion and Analysis Report required under the Listing Agreements with the Stock Exchanges on which BEL’s shares are listed as well as Government Guidelines on Corporate Governance for Central Public Enterprises. Statutory Auditors and Branch Auditors. are ‘NIL’ for 2010-11. The Board appreciates the untiring efforts and contribution by the employees at all levels. The particulars of employees to be furnished as per Section 217 (2A) of the Companies Act 1956. Acknowledgement Your Directors acknowledge with a deep sense of appreciation the support and co-operation received from the Government of India. Company’s Bankers. as amended. is attached to this report. Members and employees of the Audit Board. which enabled your Company to achieve the significant performance during the year. Other Disclosures Information required to be disclosed in accordance with Section 217 (1) (e) of the Companies Act 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 regarding conservation of energy. technology absorption and foreign exchange earnings and outgo. the Indian Navy. read with the Companies (Particulars of Employees) Rules 1975. collaborators and vendors. For and on behalf of the Board Ashwani Kumar Datt Chairman & Managing Director 17 . particularly the Indian Army. Defence Finance and Defence Research & Development Organisation. Defence Acquisition. We thank the Comptroller and Auditor General of India. is annexed to this Report.ANNUAL REPORT 2010 . the para-military forces and others. Chairman. The Board also gratefully acknowledges the patronage extended to the Company by its esteemed customers.

legal compliances. Directors Meetings held during respective tenure of Director No. Details of attendance of the Directors at the Board Meetings.. are given below: Sl. Annual General Meeting and the number of other directorships / committee memberships held by them during 2010-11 etc. No. seven Board Meetings were held and the maximum interval between any two meetings was 90 days. Meetings and Attendance During the financial year ended 31st March 2011. Our corporate structure. Indian Navy and (iii) the Additional Financial Advisor & Joint Secretary from the Ministry of Defence are Permanent Special Invitees to all the Board Meetings of the Company. 2 Govt. (i) the Vice Chief of Air Staff. Board of Directors Composition The composition of BEL Board of Directors is in line with Clause 49 of Listing Agreements with Stock Exchanges and the guidelines on Corporate Governance issued by the Government of India. adequate disclosures. BEL gives importance to adherence to adopted corporate values and objectives and discharging social responsibilities as a corporate citizen. accountability. BEL strives to transcend much beyond the basic requirements of Corporate Governance focusing consistently towards value addition for all its stakeholders. of Board Meetings attended Attendance at the last No.11 Annexure to Directors’ Report (Contd. In keeping with its professional approach. 30th July 2010.ANNUAL REPORT 2010 . In addition. BEL Board of Directors consists of 7 Wholetime Directors (Executive Directors). integrity. as per Govt. 17th May 2010. 27th Jan 2011 and 28th Jan 2011. financial prudence and commitment to values. BEL is implementing the precepts of Corporate Governance in letter and spirit. including the Chairman & Managing Director. directives.) Corporate Governance Report Philosophy and Code of Governance BEL’s philosophy of Corporate Governance is based on the principles of honesty. 25th June 2010. of other AGM held directorships on 28 Sept held 2010 * Number of Committee membership across all companies As Chairman As Member Wholetime (Executive) Directors 1 2 3 4 5 6 7 Mr A K Datt Mr M L Shanmukh Mr H S Bhadoria Mr I V Sarma Mr M G Raghuveer Mr H N Ramakrishna Mr Anil Kumar 7 7 7 7 7 7 7 7 6 7 7 7 7 7 Yes Yes Yes Yes Yes Yes Yes 1 1 2 2 2 Nil Nil Nil 1 Nil Nil Nil Nil Nil Nil 1 1 1 2 Nil 1 28 . Directors (Non-executive Directors) and 9 Non-executive Independent Directors. 29th Oct 2010. BEL believes in customer satisfaction. The Board Meetings were held on 30th April 2010. business and disclosure practices have been aligned to our Corporate Governance philosophy. transparency in decision-making and avoiding conflicts of interest. Indian Air Force (ii) the Chief of Material.

e. During the year ended 31st March 2011. 30th July 2010. 21st Dec 2010) Mr N Sitaram (w. The Company Secretary is the Secretary to the Audit Committee. Clause 49 and the DPE Guidelines. one Govt. In addition.com. Audit Committee The composition of the Audit Committee is in line with Section 292 A of the Companies Act 1956. www. regularly. Chairman of the Audit Committee is an Independent Director.ANNUAL REPORT 2010 . 21st Dec 2010) Prof G Madhavan Nair (w.f. The Company’s Audit Committee consisted of four Independent Directors. Director and one Wholetime Director. 21st Dec 2010) Dr Satyanarayana Dash (w.e. 29th Oct 2010. The terms of reference of the Audit Committee are as specified in Section 292 A of the Act. Code of Conduct Board of Directors of your Company has laid down a Code of Conduct for all Board members and senior management personnel of the Company as per Clause 49 and the Guidelines on Corporate Governance for Central Public Sector Enterprises issued by the Dept of Public Enterprises (DPE Guidelines). Chairman of the Audit Committee attended the Annual General Meeting of the Company held on 28th Sept 2010.) G Sridharan Mr Anil Razdan Prof V K Bhalla Mr M S Ramachandran Prof Anurag Kumar (w. Clause 49 of Listing Agreements with Stock Exchanges and the guidelines on Corporate Governance issued by the Government of India. of other AGM held directorships on 28 Sept held 2010 Sl.e. 25th June 2010. The Code of Conduct has been posted on the Company’s website.Executive Independent Directors 10 11 12 13 14 15 16 17 18 Lt Gen (Retd. Directors No.f. All Board members and senior management personnel have affirmed compliance with the Code of Conduct during the year 2010-11. Chairmanship / membership of the Audit Committee and the Shareholders’ Grievance Committee are considered. of Board Meetings attended * Number of Committee membership across all companies Part-time Govt (Non . the Statutory Auditors of the Company. the Audit Committee met six times on 30th April 2010. 29 .11 Meetings held during respective tenure of Director Attendance at the last No.Executive) Directors 8 9 Mr Satyajeet Rajan Lt Gen P Mohapatra 7 7 5 3 No No Nil 2 Nil Nil 1 Nil Non .f. No. A declaration to this effect signed by the Chairman & Managing Director is attached to this Report. The number of directorship and committee positions given above are as notified by the Directors and it is confirmed that no Director has been a member of more than 10 committees or acted as Chairman of more than 5 committees across all Companies in which he is a Director. 9th Dec 2010 and 28th Jan 2011. 21st Dec 2010) Dr R Venkata Rao (wef 21st Dec 2010) 7 7 7 7 2 2 2 2 2 6 5 7 6 2 0 1 2 2 Yes No No No Nil 2 4 5 Nil Nil Nil Nil Nil 2 Nil 1 Nil Nil Nil Nil Nil Nil 1 3 1 Nil Nil Nil Nil Nil Note: * As per Clause 49.bel-india.e. the Director (Finance) and the General Manager (Internal Audit) are also invited to attend the meetings of the Audit Committee.f.

000 0 0 0 0 0 180.173.000 Committee Meetings 180.688 606. 21st Dec 2010) Prof G Madhavan Nair (w.000 40.f. Details of sitting fees paid to the Independent Directors during the year 2010 .ANNUAL REPORT 2010 .005 366.129.000 600.000 140.000 40.245 318. However.185.190.667 39. city compensatory allowance. The Company has not issued any stock options to its Directors. Non .904 51.000 140. letter appointing the Chairman & Managing Director and other Functional Directors indicate the detailed terms and conditions of their appointment.273 507.time Director attends more than one meeting (of Board / Committee) on the same day. Part-time Govt.099 2.677 3.364.076 2.. They are also not paid sitting fees for attending Board / Committee meetings.045 4.615.f.executive Directors) are not paid any remuneration.410 839.743.744 0 0 0 Total Mr A K Datt Mr M L Shanmukh Mr H S Bhadoria Mr I V Sarma Mr M G Raghuveer Mr H N Ramakrishna Mr Anil Kumar 2. basic pay.e.964 465.000 The Company does not pay any commission to its Directors.000 60. entitlement to accommodation. the appointment. of meetings attended 6 4 4 6 6 6 Remuneration Committee / Remuneration Policy Being a Central Govt.256 Name of Director Salary Benefits * Incentive Leased Accommodation 687. and hence the Company has not constituted any Remuneration Committee.000 100.903 45.358 2. None of the Non-executive Directors had any pecuniary relationship or transactions with the Company during the year.000 0 20.000 40.000 60.469 33.000 40. Directors (Non .720 230.000 Total 300.471 2.000 40. of India.453 2. Details of remuneration of Wholetime Directors during the year 2010 .000 555.000 40.678 42.448 2. including the period of appointment.528 * Medical and other perquisites valued as per IT Rules.470 3.251 47. and it also indicates that in respect of other terms and conditions not covered in the letter.e.779.000 200.000 30 .153.11 are given below : (in `) Company contribution to PF & Incremental Gratuity 234.974 638.000 40.251 251.e. 21st Dec 2010) Dr Satyanarayana Dash (w. the relevant rules of the Company shall apply.611 4. 21st Dec 2010) Dr R Venkata Rao (w.029 2.11 The attendance of the Chairman and members of the Audit Committee in these meetings were as follows : Name Lt Gen (Retd) G Sridharan Mr Satyajeet Rajan Mr Anil Razdan Prof V K Bhalla Mr M S Ramachandran Mr H S Bhadoria Meetings held during respective tenure of Director 6 6 6 6 6 6 No.903 340.executive Independent Directors are paid sitting fees of ` 20.000.371 2. Mr M S Ramachandran Prof Anurag Kumar (w.175 655.000 0 20. dearness allowance. 21st Dec 2010) 120. 21st Dec 2010) Mr N Sitaram (w. if the same Non .254.746.f. The Govt.f.000 per meeting of the Board / Committee of the Board attended.official Part . the sitting fees payable for each of such additional meeting is ` 10.e.500 600.558. Public Sector Enterprise.179 52.958 4.f. tenure and remuneration of Directors are decided by the Govt.11 are given below : (in `) Sitting Fees Name Lt Gen (Retd) G Sridharan Mr Anil Razdan Prof V K Bhalla Board Meetings 120.e.604 428.825. etc.985. scale of pay.399 311.

11 Market Price Data The details of high / low market prices of the shares of the Company at the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE) are as under : Quotation on BSE ` Per Share High April 2010 May 2010 June 2010 July 2010 Aug 2010 Sept 2010 Oct 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 March 2011 2.90 Low 1791.00 Month A comparison of closing quotation of the Company’s share price on NSE with the closing position of NSE NIFTY during the year 2010-11 (position as on first trading day of every month) is presented in the following graph : Both NSE NIFTY index and your Company’s share price on NSE have been indexed to 100 as on 1st April 2010 to prepare the above chart.30 1651.00 1642.00 1661.00 1894.00 1842.00 1660.00 1887.00 1793. 34 .40 1758.80 1874.00 1651.90 1829.25 1610.05 1624.00 1650.30 1613.00 1848.00 1877.90 1928.55 1849.95 1874.00 1729.95 Low 1790.00 1708.50 1616.15 1657.00 Quotation on NSE ` Per Share High 2214.10 1600.00 1800.25 1647.00 1709.10 1620.80 1827.00 1795.25 1602.80 1727.00 1807.00 1927.20 1612.212.05 1620.00 1625.40 1760.00 1840.95 1859.00 1625.ANNUAL REPORT 2010 .90 1645.

000 4.00.56. of Shares 15. (formerly known as Alpha Systems Pvt. of Shares 6. 080 23460819. of Shareholders No. of India) Mutual Funds / UTI Financial Institutions / Banks No.000 % 1.86 2.05 0.372 8.75.HDFC Tax Saver Fund No.21 100.600 78 5 49.61 1.35. No.970 103 488 4 No.83.22 0.08 0.326 12.979 4..503 7.00 Category Insurance Companies Foreign Institutional Investors Bodies Corporate Individuals Clearing Members NRIs Trusts Total NSE 132.54 94.06.29 100.10 0.628 % Holding 8.76. Ltd.00.54 Distribution of Shareholding as on 31st March 2011 No.652 43.902 2.1 LIC of India .67 0.28.640 28. F.71 0.30. The Company has constituted a Share Transfer Committee consisting of the Chairman & Managing Director. the Director (Finance) and the Director (Other Units) to consider and approve all share transfer requests and related matters.89. 080 23460815 to 818. alfint@vsnl.542 2.27.706 20.27 0.03.16 0.37 0.48.04 0. of Equity Shares Held Upto 500 501-1000 1001-2000 2001-3000 3001-4000 4001-5000 No. of Shares % Holding 75.600 21.130 8.36.749 4. Shares under objection are returned within the stipulated period seeking suitable rectification.437 7. (Govt.13 1.ANNUAL REPORT 2010 .11 Liquidity The Company’s shares are very liquid and are actively traded on the Indian stock exchanges. Malleswaram Bangalore – 560 003 T.51.351 % Holding 75.660 2. 4th Cross Sampige Road.04 Sl. Relevant data of turnover for the financial year 2010-11 is given below : BSE No. of Shares 68.72. of Shareholders 20.25.769 13. to forward all share transfer / transmission / split / consolidation / issue of duplicate certificates / change of address requests as well as all dematerialisation / rematerialisation requests and related matters as well as all dividend related queries.00 6 6.89.05 0. nominees) Life Insurance Corporation of India LIC of India Market Plus .000 10001 and above Total 35 .898 42.081 12.56 0.71.72 1. 4 5 6 7 8 9 10 No.HDFC Top 200 Fund SBI Mutual Fund .86 6.970 7. Bangalore. The Share Transfer Committee meets periodically to approve the transfers within the specified period.11.210 BSE + NSE 159.54. of Shareholders 19 84 615 18.Market Plus HDFC Trustee Co Ltd – HDFC Equity Fund LIC of India .00.32 0.50 0.44.173 4.99 0.69 0.53 5.39 0.050 5001-10.36.224 33 21 16 9 11 16 42 20.Magnum Tax Gain 1993 HDFC Trustee Co Ltd ..19.982 5.07. Ramana Residency.00.04 100.101 17.Profit Plus HDFC Trustee Co Ltd .20.41 2.518 3. a SEBI registered Category I Registrar and Share Transfer Agent is the Company’s Registrar and Share Transfer Agent.05.154 29.916 26.372 % 99.931 13. Shareholding Pattern as on 31st March 2011 Sl.89. E. No.).04 0. complaints : Integrated Enterprises (India) Ltd # 30.88 0.06.65 1.83.08 0.362 2.000 Top 10 Shareholders as on 31st March 2011 Sl.242 47.89.56 0.Money Plus Life Insurance Corporation of India . 1 2 3 Category Central Govt. No. 1 2 3 4 5 6 7 8 9 10 Name President of India (including 5 Govt.96.50. Address of Integrated Enterprises (India) Ltd is given below. of shares traded Value (` in Lakhs) Share Transfer Integrated Enterprises (India) Ltd.97 0.00 No.508 32.369 5.com Share Transfer System Shares sent for transfer are registered within the stipulated period.

For R G N Price & Co. 2003 are not applicable to the Company. carried out in accordance with the generally accepted auditing practices in India. (xiii) The Company is not a chit fund or a nidhi / mutual benefit fund / society. Chandigarh 66. and according to the information and explanations given to us. (xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company. Hyderabad 1. 1956 Central Sales Tax Act.ANNUAL REPORT 2010 .584.P. No.44 Commissioner of Commercial Taxes (Appeals).99 JC (Appeals). Sales Tax Sales Tax 3.66 DC (Appeals).26 CESTAT Nature of Dues 49. New Delhi 57.P.95 Case remanded to Deputy Commissioner (Appeal) 2. (xx) The Company has not raised money by Public Issues and hence Clause 4 (xx) of CARO 2003 is not applicable to the Company. clause (xvi) of CARO 2003 is not applicable.01 High Court of Karnataka 103. the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order.002785S U.52 Punjab and Haryana High Court. 1948 damage towards late deposit. (xv) The Company has not given any guarantee for loans taken by others from banks or financial institutions. (xi) In our opinion and according to the information and explanations given to us. securities. Nainital Karnataka Sales Tax Sales Tax Service Tax Service Tax Service Tax Service Tax Service Tax Service Tax Andhra Pradesh VAT Sales Tax Trade Tax Benefit of Concessional Form not allowed (Year 2001-02) Urban Land Tax Land Tax Vacant Land Tax Land Tax 41. the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order. (xvi) The Company has not availed any term loan and hence.11 Tax(VAT).90 Customs.35 Land Tax Authorities Bangalore 29th June 2011 41 .97 Case remanded to 1st Appellate Authority (x) The Company does not have accumulated losses as at the end of the financial year and has not incurred Cash losses during the financial year and in the immediately preceding financial year. the Company has not defaulted in repayment of dues to bank. Chirkunda.42 Commissioner (Appeals) 34. 1948 1. 2003 are not applicable to the Company.09 Sales Tax Appellate Tribunal 73.44 Land Tax Authorities 10. Bangalore 8. debentures and other investments.04 Sales Tax Appellate Tribunal 220. that causes the financial statements to be materially misstated. 1948 Benefit of Concessional Form 3D not allowed (Year 1979-80) Benefit of Concessional Form 3B and 3D not allowed (Year 1991-92) Sales Tax dues and benefit of Concessional Form C (Year 1980-81) Benefit of Concessional Form D not allowed (Year 1989-90) Central Sales Tax 1. we have neither come across any instance of fraud on or by the Company noticed or reported during the year nor have we been informed of any such case by the management. 026666 Firm Regn.17 Appeal filed with DC (Appeals) for acceptance of Duplicate Copy of 3D(1) 7.85 Commissioner (Appeals) U. Therefore. the Company has not granted loans and advances on the basis of security by way of pledge of shares. 1956.38 Commissioner 26. Excise Duty and Cess which have not been deposited on account of any dispute except as follows : Nature of Statute The Central Excise Act.P. 1956 Central Sales Tax Act. 1956 482. Customs Duty. we report that no funds raised on short term basis have been used for long term investment. (xviii) The Company has not made preferential allotment of shares to parties covered in the register maintained under Section 301 of the Companies Act. (xix) The Company has not issued any debentures.21 Case remanded to AC (Appeal) Central Sales Tax Act. Chartered Accountants H S Venkatesh Partner Membership No. Trade Tax Act. Bihar 21. Excise and Demand Service Tax Appellate Tribunal. Secundarabad Division. Accordingly. 1944 Amount Forum where dispute disputed is pending (` in Lakhs) Excise Duty 64. (xii) According to information furnished. Sales Tax Act. (xiv) The Company is not dealing in or trading in shares. Delhi Income Tax (TDS) Applicability of 194 Cor 194 I (Financial Year 2007-08 and 2008-09) Interest and ESI Act. (xxi) During the course of our examination of the books and records of the Company. Sales Tax Bihar A.37 Income Tax Appellate Tribunal.08 Uttrakhand High Court. debentures and other securities. Trade Tax Act.

570.198.42 41.16 APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation / Amortisation Net Block Capital Work-in-progress Investments Deferred Tax Assets (Refer Note No.50 43. Chartered Accountants H S Venkatesh Partner Membership No.673.298.37 817.900.000.11 18.04 130.528.64 55.640. As per our report of even date attached.61 434.525. 20 of Schedule 21) Current Assets.52 216.47 57.12 8.85 52.11 Balance Sheet as at 31st March 2011 (` in Lakhs) Schedule SOURCES OF FUNDS Shareholders Funds Share Capital Reserves & Surplus Government Grants Loan Funds Secured Loans Unsecured Loans As at 31.59 290.05 121.935.243.ANNUAL REPORT 2010 .65 1.880.198.076.01 365.11 15.064.96 72.996.102.298.332.640.52 497. 026666 Firm Regn No.65 498.00 424.765.570.61 72.83 862.70 1.49 54.220.142.2010 1 2 3 4 8.88 8 9 10 11 246.66 651.90 170.148.28 3.629.360.217.269.531.324.868.898.04 434.36 1.10 5.3.05 443. Loans & Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure (to the extent not written off or adjusted) 5 6 7 178.00 490.16 12 13 Accounting Policies and Schedules 1 to 22 form part of Accounts.77 48.2011 As at 31.000.836.686.525.139. For R G N Price & Co.3.41 500.84 426.102.25 759.12 244.13 1.59 432.05 41.20 357.840.742.041.05 500.870.59 2. 002785S Place : Bangalore Date : 29th June 2011 Ashwani Kumar Datt Chairman & Managing Director M G Raghuveer Director (Finance) C R Prakash Company Secretary 48 .60 54.371.251.94 48.

658.10 90. 002785S Place : Bangalore Date : 29th June 2011 Ashwani Kumar Datt Chairman & Managing Director M G Raghuveer Director (Finance) C R Prakash Company Secretary 49 . For R G N Price & Co.59 3.408.134.40 3.51 249.Earlier Years .85 41.303.00 (72.47 104.88 36.47 35.68 10 80.00 10. Finished Goods and Scrap Profit on Sale of Fixed Assets (Net) Transfer from Grants EXPENDITURE Consumption of Raw Materials and Components Consumption of Stores & Spares Purchase of Finished Goods Employees Remuneration and Benefits Other Expenses of Manufacturing.62 38.80 341.89 2.285.01 18.97) 32.17 14 15 16 17 18 20 21 22 107.23 53.69 70.106.00 217.32 5.Current Year .79 40.02) 29.415.977.38 4.68 107.958.ANNUAL REPORT 2010 .90 471.000.594.495.00 458.000.78) (1.17 4.011.77 177.93 521.2010 501.106.52 518. Chartered Accountants H S Venkatesh Partner Membership No.146.043.36 12. Selling and Distribution Interest Depreciation / Amortisation on Fixed Assets Less: Expenditure allocated to Capital Jobs Profit before Prior Period.64 104.395.80 (2.41 209.21 4.17 41.000.523.480.306.800.000 90.437.2011 520.873.110.186.569.75 100.391.10 378.98 32.129.204.38 (` in Lakhs) Year ended 31.326.34 558.87 227.523.32 107.Total Provision for Taxation Profit After Tax (PAT) Less: Transfer to Capital Reserve (Capital Profit on sale of fixed assets included above) Add: Balance Brought Forward from previous year Profit available for appropriation Appropriations: Dividends: Interim Dividend Proposed Final Dividend Dividend Tax Transfer to General Reserve Balance carried to Balance Sheet Notes to Accounts Balance Sheet Abstract & Company’s General Business Profile Earnings per Share (Equity Shares of Rupees Ten each) in Rupees: Basic & Diluted: Before Extraordinary Item ` After Extraordinary Item ` Face Value of share ` Number of Shares used in computing earnings per share: Basic & Diluted 19 Year ended 31.303.008.106.00 12.11 Profit and Loss Account for the year ended 31st March 2011 Schedule INCOME Sales less returns Income from services Turnover (Gross) Less: Excise Duty Turnover (Net) Other revenues Accretion / (Decretion) to Work-in-Progress.30 (2.813.30 114.000 Accounting Policies and Schedules 1 to 22 form part of Accounts.408.22 (888.236.63 31.539.55 3.642.3.269.Deferred Taxes .74 450.11 114.216.821.502.087.30 114.810.78 86.837.118.233.933.00 2.30 43.3.98 191.06 35. As per our report of even date attached.900.967.000.500.35 33.114.021.98) 136.23 471. Administration.47 20.Expense Less: Extraordinary items Profit for the Year Less: Prior Period Items (Net) Profit Before Tax (PBT) Less: Provision for Taxation .00 191.59 277.34 552.66 40.84 249.91 104.29 104.233.969.48 11.70 547.51 277. exceptional and extraordinary items Less: Exceptional Items .334.416.45 585.33) 116.00 2.923.174.11 10 80. 026666 Firm Regn No.134.560.11 90.25 72.800.794.89 101.64 21.23 450.96 964.

099.42 SCHEDULE – 4 Secured Loans Cash Credit from Banks secured by hypothecation of Inventories and Book debts Liability on Leased Assets .33 40.000 (80.000.00 1.525.ANNUAL REPORT 2010 .122.61 2.570.686.45 1.49 90.00 272.26 0.000.34 2.122.2010 10.000) Equity Shares of ` 10 each SCHEDULE – 2 Reserves & Surplus Capital Reserve a) b) Land Valuation Reserve Capital Profit : At the beginning of the year Add : Transfer from Profit & Loss Account c) d) On acquisition of Machilipatnam Unit General Investment Subsidy for Kotdwara Unit 848.041.42 1.3.33 191.77 848.2011 As at 31.65 SCHEDULE – 3 Government Grants Grant from Government for Research and other purposes At the beginning of the year Add : Additions during the year Less : Transfer to Profit & Loss Account 2.306.000.33 40.96 22.000.041.24 0.122.59 490.00 50 .00 8.91 378.(Secured by vehicles on lease) 41.26 41.96 232.000. Subscribed & Paid-up Capital 80.122.85 50.85 50.000.59 General Reserve At the beginning of the year Add : Transfer from Profit & Loss Account Surplus Balance carried from P & L Account 217.05 41.64 757.33 232.00 10.00 200.75 192.31 661.00 200.344.61 72.686.000.11 Schedules to Financial Statements (` in Lakhs) Particulars SCHEDULE – 1 Share Capital Authorised Capital 100.51 424.73 1.000.96 2.05 72.00 8.000 (100.303.000.98 890.99 964.000) Equity Shares of ` 10 each Issued.141.041.3.64 As at 31.000.

2011 Accumulated Depreciation / Amortisation upto 31.92 577.365.27 858.05 157.815.81 356.52 4.82 48.64 376.43 121.611.82 757.860.31 130.77 177.217.502.026.19 48.96 433.70 18.086.11 14.099.12 1.204.217.535.20 17.3.04 2.90 1.380.508.60 24.27 5.31 742.28 61. Fixtures and other Equipment + + Assets acquired for Sponsored Research * * Leased Assets – Vehicles Total * * * Previous Year Intangible Assets : Enterprise Resource Planning (ERP) Software Licenses / Implementation charges 1.62 170.20 69.13 26.3.50 86.744.24) pertaining to assets not in active use.283.50 282.23 178.96 31.64 835.830.33 11.67 1.79 (` 401.45 16.896.93 1.23 11.689) Sq.575.353.04 1.34 168.220.82 156.22 13.284.11 810.732.996.725.500.83 44.121.996.233.334.67 8.2011 As at 31.73 Previous Year Grand Total * * * Previous Year * ** 51 Free Hold Land consists of 943. Assets are the property of the Government of India ++ Additions during the year include ` 426.634.19 8.73 2.27 131.41 1.086.06 4.631.306.91 1.82 11.034.61 1.3.865.20 605.086.20 551.88 12.745.41 1.48 128.07 56.27 14.91 146.49 487.309.17 15. Land includes 23.06 1.64 627.47 3.64 708.319.61 48.471.617.3.861.85 434.320.857.244.92 48.363.099.515 (20.645.710.435.483.524.84 816.61 79.45 419.528.04 1.4.43 5.2010 Additions / adjustments during the year Deductions / adjustments during the year Total cost as at 31.36 Depreciation / Amortisation SCHEDULE – 5 Fixed Assets Particulars ANNUAL REPORT 2010 .28 4.438.40 acres (302.82 120.13 3.47 8.896.072.02 1.717.81 64.675.16 171.697.40 6.42 11.168.273.33(` 2659.46 36.920.22 26.76 2.36 13.17 12.587.29 10.65 486.83 7.28 487. disposal of which is pending.587.57 984.29 1.666.56 14.101.990. .02 54.53 434.09 260. * * * Gross Block and Accumulated Depreciation include ` 2365.85 824.23 1.359.69 955.334.629.65 34.603.78 48.04 170.96 8.39 11.635.98 32.06 1.95 48.2010 Depreciation / Amortisation for the year Deductions / adjustments during the year 11.77 267.Schedules to Financial Statements (Contd.52 1.91 129.617.46 110.38 1.63 346.920.749.900.764.59 1.142.53 27.27 48.593.15 2.42 708.121.46 434.11 Tangible Assets : 1.64 3.08 168.36 46.47 5.43 120.2010 Cost as at 1.) (` in Lakhs) Gross Block (At Cost) Net Block As at 31.629.254.84 52.51 63.082.64 638.879.82 17.009.08) in respect of the assets of Central Research Laboratories of BEL.67 4.38 81.93 95. meters leased to commercial / religious organisations and in their possession.13 1.28 46.670.92 13.64 1.2011 As at 31.72 18.38 2.508.57 486.86 82.74 13.30 20.26 3.287.54 2.371.53 1.07 8.33 168.44 48.220.94 121.25 16.609.3.54 Free Hold Land * Lease Hold Land Roads and Culverts Buildings ++ Installations+ + Plant & Machinery ++ Electronic Equipment ++ Equipment for R & D Lab Vehicles Office Equipment ++ Furniture.05 1.009.593.40 acres).236.77 220.056.742.67 65.22 198.60 5.67 acres) and Lease Hold Land consists of 302.38 2.66 878.634.086.41 1.77 111.17 10.446.40 492.21 1.59 1.086.150.44 3.052.74 13.049.10 48.27 46.67 acres (943.975.

745) Equity Shares of ` 10 each fully paid in BEL Multitone Pvt.198. Society..68 95.000) Equity Shares of ` 10 each fully paid in GE BE Private Ltd.98 1.514.08 936... Pune Note : These are in respect of apartments owned by the Company. Bangalore 318.42 128. Capital Goods in Transit & under Inspection Less : Provision Advances on account of Capital items Less : Provision Intangible Assets .90 260.03 327.90 1.88 0.73 79. Mumbai 30 Shares of ` 50 each fully paid in Chandralok Co-op.3.68 3..11 1.046.59 193.33 2.67 368.29 557.223 (1.90 1.35 5.02 0. Society Ltd.02 0.29 234.198.000 (2.11 1.64 128.ANNUAL REPORT 2010 .61 193.11 31.84 695.02 936.71 0..00 Aggregate value of unquoted shares 1.under implementation Opening Balance Add : Amount incurred during the year Less : Amount Capitalised during the year As at 31.08 260.29 267.38 209. Society Ltd..745 (318.223) Equity Shares of ` 100 each fully paid in BEL Optronic Devices Ltd.700. Society.60 107.02 0.3.11 52 .198.198.03 1. Bangalore Less : Provision for Diminution in value of investment 0. Pune Others: 2. Housing Society Ltd.88 29..01 0.00 31.69 368.700. Mumbai 5 Shares of ` 50 each fully paid in Dalamal Park Co-op.98 1. Mumbai 10 Shares of ` 50 each fully paid in Shri Sapta Ratna Co-op. Ltd. cost of which is included under Fixed Assets Trade Unquoted Subsidiary : 1.898.11 Schedules to Financial Statements (Contd.05 288. Machinery etc.59 353.01 0.) Particulars SCHEDULE – 6 Capital Work in Progress at Cost Civil Construction Plant.04 189. Mumbai 10 Shares of ` 50 each fully paid in Sukh Sagar Premises Co-op.2011 (` in Lakhs) As at 31.Enterprise Resource Planning (ERP) .142.70 461.600.85 SCHEDULE – 7 Investments at Cost – Long Term Non-trade Unquoted Investment in Shares / Bonds : 40 Shares of ` 50 each fully paid in Cuffe Parade Persopolis Premises Co-op.66 234.612.584.600.2010 2.88 29.

840.836.753.66 SCHEDULE – 10 Cash and Bank Balances Cash and Cheques on hand With Scheduled Banks : Current Accounts Deposit Accounts (incl.819.51 78.31 216.05 290.34 127.11 92.07 2.50 53 .870.81 357.906.61 45.71 559.58 20.40 13.64 2.89 216.73 4.295.265.82 97.07 125.589.094.17 216.324.53 4.20 14.2010 2.3.59 SCHEDULE – 9 Sundry Debtors Debts – Considered Good : Debts over six months Other debts Debts – Considered Doubtful : Debts over six months Other debts 43.868.069.85 133.297.58 16.05 253.60 5.777.067.132.37 40.66 As at 31.836.080.52 216.015.ANNUAL REPORT 2010 .076.355.070.62 14.66 35.3. Accrued Interest) Unpaid Dividend Account 89.10 290.824.) Particulars SCHEDULE – 8 Inventories Stores and Spares Raw Materials & Components Materials in Transit and under Inspection Less : Provision Finished Goods Work .66 100.51 290.756.58 256.2011 (` in Lakhs) As at 31.052.94 10.17 256.28 200.690.20 40.316.935.860.45 8.445.26 6.15 290.295.35 246.531.13 116.324.28 651.552.279.98 197.61 156.619.71 47.406.836.10 337.50 298.94 17.Progress Disposable Scrap Less : Provision for obsolescence 13.64 133.37 47.108.20 58.11 Schedules to Financial Statements (Contd.793.324.93 244.208.76 Less : Provision for doubtful debts Particulars of Sundry Debtors : Considered good in respect of which the Company is fully secured Considered good for which the Company holds no security other than the debtors personal security 59.in .070.166.891.459.948.

Port Trust and Other Government Authorities Deposits Less : Provision for Doubtful Loans. 17.814.531.14 42.742.51 44.68 59.2010 1.36 631.450.81 2.81 57.01 151.84 5.79 59.332.31 166.27 5.199.3.74)] Balances with Customs.156.31 90.102.586.531.394.816.29 5.93 As at 31.63 6.206.498.55 759.81 38.371.85 43.47 25.21 * Includes due by Directors & Secretary ` 0.15 (` 104.46 3.965.667.85 57.15 90.28 38.Others Subsidiary Company Other Liabilities Advances / Progress Payments received from Customers Investor Education & Protection Fund to be credited when due: – Unpaid Dividend Account * – Unpaid Matured Deposits * * Amount to be transferred to the Investor Education & Protection Fund as at Balance Sheet date.49 NIL 54 .199.47 NIL 143.83 43.83 1.3.332.542.667.571.44 212.85 44.76 33.29 820.472.886.80)] SCHEDULE – 12 Current Liabilities Sundry Creditors: Dues to Micro and Small Enterprises Creditors .24 16.21 1.42 22.68 1.965.36 (` 0.11 Schedules to Financial Statements (Contd.11 3.244.2011 (` in Lakhs) As at 31.42 216.632.349. Advances and Claims Particulars of Loans and Advances : Considered good in respect of which the Company is fully secured Considered good for which the Company holds no security other than debtors personal security Considered doubtful and provided for 55.632.09 32.ANNUAL REPORT 2010 .532.) Particulars SCHEDULE – 11 Loans and Advances Loans to Employees * Loans to Others Advances Recoverable in cash or in kind or for value to be received : Advances to Employees * Advances for Purchase Claims Receivable – Purchases Advances to others Advance payment of Income Tax [Net of Provisions for Tax – ` 100.36 1.740.77 50.20 350.86 644.964.45) [Maximum amount due at any time during the year ` 0.21 (` 0.20 3.464.065.85 55.106.779.69 32.93 1.55 443.957.670.13 2.01 2.996.129.

406.47 55 .811.412.20 9.817.22 8.174.74) refer advance tax Schedule .430.11] Proposed Final Dividend Dividend Tax Employee Benefits : Gratuity Long .07 78.82 125.31 30.3.02 (` 1.445.088.252.07 Opening Balance 97.29 (4.89 152.311.198.826.18 6.Others Foreign Exchange Rate Differential (Gain) Miscellaneous SCHEDULE – 15 Accretion / (Decretion) to Work-in-progress.56 598.406.00 5.ANNUAL REPORT 2010 .024.099.44) Less : Adjustment pertaining to earlier years 1.824.00 24.52 4.824.76 4.58 3.3.183.51 13.53 (888.890.055.180.term Contracts Performance Warranty As at 31.Progress : Closing Balance 92.56 249.663.33 193.67 100.914.199.810.56)] 20.148.00).51 (5.51 6.19 174.58 78.438.360.00 14.21 2.95 377.80) 97.017.05 260.23 846.108.61 38.94 54.) (` in Lakhs) Particulars SCHEDULE – 13 Provisions Taxation[Net of Advance Tax ` 100.75 4.81 (` 62.3.00 2.218.005. Wages and Bonus / Ex-gratia Gratuity Contribution to Provident and Pension Funds Provision for BEL Retired Employees Contributory Health Scheme Welfare Expenses [including Salaries ` 1.22 17.45)] Interest Income from Staff / Income Tax refund / others Transport Receipts Rent Receipts Canteen Receipts Water Charges collected Provision withdrawn .807.900.87 32.11 Schedules to Financial Statements (Contd.06 36.816.334.379.35 (` 2.88 3.74 104.52 Year ended 31.91 2.648.11 14.560.809.57 2.327.186.Warranties Provision withdrawn .05 2.94 1.36 Finished Goods : Closing Stock Opening Stock Scrap : Closing Stock Opening Stock SCHEDULE – 16 Employees Remuneration and Benefits Salaries.17 7.01 57.27 495.98) 80. LD.75 3.40 11.87 12.753.Contingencies towards long term contracts Provision withdrawn .2011 As at 31.74 548.00 16.22 10.358.297.2010 12.02 598.2010 635.66 522.958.886.865.15 6.480.25) 47.39 4.80 78.14 327.473.term compensated absences BERECHS Proposed Pension Scheme Contingencies towards Long .37 345.04 1.17 9.2011 527.50 249.791.154.in .324.00 1.416.807.35 224.76 16.82 18.05 69.37 Year ended 31.031.09 260. Obsolete Inventory etc.51 91.00 6.Doubtful Debts.786. Finished Goods and Scrap Work .84 3.05 (6.447.986.36 3.35 2.224. Provision withdrawn .3.15 (` 104. PF Contribution ` 92.074.89 Particulars SCHEDULE – 14 Other Revenues Sale of Scrap & Surplus Stores Export Benefits Income from Long – Term Trade Investments – Dividend Gross (TDS – ` Nil) Interest Income – Gross [TDS ` 2.

803.22 104.24) income from wind energy] Water charges Royalty & Technical Assistance Rent Rates & Taxes Insurance Auditors’ Remuneration: Audit Tax Audit Certification Expenses Repairs & Maintenance: Buildings Plant & Machinery Others Bank Charges Printing and Stationery Discounts.76 489.03 179.44 7.36 17.03 19.72 1.61 1.59 341.12 406.118.11 1. Allowances & Rebate Advertisement & Publicity Travelling Expenses Hiring Charges for Van & Taxis Excise Duty – Others Packing & Forwarding Bad Debts & Advances written off Less : Charged to Provisions Provision for Obsolete / Redundant Materials Provisions for Doubtful Debts.72 4.41 1.19 295.94 87.28 1.736.11 Schedules to Financial Statements (Contd. Claims Provision for Warranties Write off of Raw Materials.48 393.38 2.39 101.094.13 4.121.10 5.62 310.007.76 391.731.120.411.028.258. Liquidated Damages.19 4. Stores & Components due to obsolescence and redundancy Less : Charged to Provisions Sponsorship / Contribution for Professional & Social Activities Others: Expenditure on Service Orders / Other Misc.37 2.96 349.46 131.73 41.75 (` 421.84 254.06 3.350.98 270.59 6.03 262.133.98 628.14 2.22 2.399.14 1.3.33 3.ANNUAL REPORT 2010 .13 203.2011 Year ended 31.23 323.3.038.30 2.01 269.21 1.19 7.632.63 609.93 3.41 621.963.77 3.58 4.90 4.81 422. Customers’ Claims and Disallowances Provision for Doubtful Advances.57 640.38 2.23 6.51 8.87 7.23 56 .99 6.00 2.59 532.18 197.15 23.164. Direct Expenditure After Sales Service Telephones Expenditure on Seminars & Courses Selling Commission Other Selling Expenses Miscellaneous Year ended 31.63 276.04 6.09 135.65 515.) (` in Lakhs) Particulars SCHEDULE – 17 Other Expenses of Manufacturing.768.351.83 554.08 1.49 744.47 1.188.55 1.17 579. Selling & Distribution Power and Fuel [after adjusting ` 424.67 10.19 8.60 1.90 430.55 62.328.099.85 83.196.83 510.80 444.2010 2.708.150.79 260.91 35.77 1.813.383.12 527. Administration.

27 109.29 130.24 34.33) (260.03.3.50 37.27 1.ANNUAL REPORT 2010 .91 109.56 21.50) 129.01.447.3.91 3.2007 to 31.2011 (` in Lakhs) Year ended 31.92 (2.2009 SCHEDULE – 20 Prior Period Items Prior Period Income: Sales Accretion to WIP Others Total Prior Period Income (A) Prior Period Expenditure : Salaries & Wages Depreciation Bank Charges Others Total Prior Period Expenditure (B) Total Prior Period Items Net (Income) / Expenditure [(A) .74) 1.55 2.) Particulars SCHEDULE – 18 Interest Interest on Fixed Loan .14 43.43 53.134.24 22.63 2.98 1.134.25 7.11 Schedules to Financial Statements (Contd.(B)] 3.008.29 57 .Lease Financing On Dues to Micro & Small Enterprises On Others SCHEDULE – 19 Exceptional Items Company Contribution to proposed Pension Scheme for the period from 01.48 3.031.77 (0.36 Year ended 31.36 844.68 19.2010 13.