52nd

Annual Report 2018-19

Technology Innovations
Enabling Customers
Contents

Corporate Overview 01-24 Statutory Reports 25-57

ECIL in a nutshell 02 Directors’ Report 25

ECIL in numbers 04 Annexure to Directors’
Report 34 Scan this QR code to know more about us
Financial Highlights 06
Chairman’s Message 08
Operational and Financial Statements 58-159
Strategic Highlights 12
Innovation at heart Standalone Financials 58
of our business 14 Consolidated Financials 110
A responsible
business entity 16
Board of Directors 20
Senior Management 22
View our Annual Report and
Awards and Recognition 23
Accounts and other information
Corporate Information 24 at www.ecil.co.in

Technology Innovations Enabling Customers

The standards of excellence change from time to time, and today it has a lot to do with
technological finesse in whatever we do. For us, operating at the best level of our expertise
translates to using more and more innovation in our work process and leveraging the best
of technologies to ensure consistently skilled and top notch results. And all of the above
is directed towards empowering our customers by providing them with the kind of quality
they have come to expect from us. With technology and innovation in the driver’s seat, we
are geared to set higher benchmarks of excellence!
Remembering our Founder Chairman
... to play a meaningful
role nationally, and in the
community of nations, we
must be second to none in
the application of advanced
technologies to the real
problems of man and society.
Dr. Vikram A Sarabhai
1919-1971
Electronics Corporation of
India Limited was established
under Department of Atomic
Energy on 11th April 1967 with
Dr. Vikram Sarabhai as Chairman.
ECIL and its growth were dear to
Dr. Vikram Sarabhai and amidst
other important work he always
devoted considerable time for
the Corporation all through his
tenure from 1967 to 1971. ECIL
fondly remembers Dr. Vikram
Sarabhai’s innovative leadership
and commitment for Self-Reliance
in electronics on his 100th Birth
Anniversary.
 Annual Report 2018-19

ECIL in a nutshell

Electronics Corporation of India Limited (ECIL), is a pioneer in development of

various complex electronic products covering multiple sectors and domains. ECIL is
an integrated player in strategic electronics covering designing, manufacturing and
marketing of some of the key electronic products.
ECIL is a wholly-owned government enterprise, under the Department of Atomic Energy, catering to control and instrumentation
requirements of nuclear projects and manufacturing of electronic instruments and systems. Over the years, we have diversified into
manufacturing communications and electronic warfare equipment, electronic voting machines and security systems along with
offering support services.

We have expanded our offerings to serve multiple industries including Defence, Civil Aviation, Information & Broadcasting,
Telecommunications, Insurance, Banking, Police, Para-Military Forces, Oil & Gas, Power, Space, Education, Health, Agriculture, Steel
and Coal sectors and various user departments in the Government domain.

With self-reliance as our guiding principle, ECIL has pioneered in a number of products and technologies. The early forays in to
consumer electronics has enabled us to build a house-hold name with introduction of many ‘firsts’ in the country such as Digital
Computers, TVs, Electronic Voting Machines, Earth Station Antenna, Control & Instrumentation for Nuclear Power Plants, Radiation
Monitoring & Detection Systems, Programmable Logic Controller etc. We are widely recognised as a torch-bearer of Electronics
and IT revolution in the country.

Vision Objectives

To contribute to the country in
achieving self-reliance in strategic
electronics.
• To continue services to the country’s
needs for the peaceful uses of
Atomic Energy. Special and Strategic
requirements of Defence and Space,
Electronics Security Systems and
Support for Civil Aviation sector.
• To progressively improve shareholder
value of the Company.
• To strengthen the technology base,
enhance skill base and ensure
succession planning in the Company.

Mission
To strengthen its status as a valued
technology provider to the nation
particularly in the areas of Strategic
Electronics meeting the requirements
of Atomic Energy, Defence, Space,
Civil Aviation, Security and such other
sectors of strategic, economic and
social importance.
•
To establish newer technology •
To re-engineer the Company to
products such as Container Scanning become nationally and internationally
competitive by paying particular
Systems and Explosive Detectors.
attention to delivery, cost and quality
• To explore new avenues of business in all its activities.
and work for growth in strategic
sectors in addition to working for • To consciously work for finding export
realizing technological solutions markets for the Company’s products.
for the benefit of society in areas
like Agriculture, Education, Health,
Power, Transportation, Food, Disaster
Management, etc.

02
 Corporate Overview Statutory Reports Financial Statements

Our Offerings

Security Defence IT & eGov

Our security vertical delivers legacy
security solutions which includes Access
Control Systems and integrated security
solutions. Through our technological tie-
ups we even provide variety of Jamming
solutions to various State prisons and
Police Departments.
One of the key verticals of ECIL is
Defence. Through this vertical we offer
a range of products including Universal
Electronic Fuzes for Artillery, Military
Radios, C4I systems for Missile Systems,
Communication Intelligent Systems and
various Strategic projects of Defence.
The major offerings of the vertical
consists of Electronic Voting Machines,
Voter Verifiable Paper Audit Trail
equipment, BSNL exchange upgrades
to MAX-NG. We also provide IT training
to various state departments and
digitization of Sales tax Departments
through this vertical.

5 %
Share in total revenue
20 %
Share in total revenue
61 %
Share in total revenue

Aerospace Nuclear

Through this segment we design,
manufacture and produce Antenna
Systems, Electro-mechanical sub systems
like Gyros, Synchros and Actuator
Our offering through this vertical includes
Control and Instrumentation Systems,
Radiation Monitoring Instruments and
Systems, Operator Training Simulators of
Nuclear Power Plants and Facilities.

1 %
Share in total revenue
13 %
Share in total revenue

03
 Annual Report 2018-19

ECIL in numbers

Financial Capital Human Capital Manufacturing Capital

Rs. 2663 Crore 1894 Rs. 278 Crore

Gross Turnover Employees as on 31st March 2019 Gross Block

Rs. 1026 Crore 23 Rs. 2826 Crore

Net worth In-house training programs Closing order book as on
organized for employees March 31, 2019

38.79%
5-year CAGR growth in PAT

Note: All the figures are for FY 2018-19 until otherwise state

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 Corporate Overview Statutory Reports Financial Statements

Intellectual Capital Natural Capital Social & Relationship Capital

Rs. 47.69 Crore 7,81,721units Rs. 1,35,61,728

Spent towards R&D activities Power produced through roof top Spent in CSR activities
solar system of 500 kWp

1.79% 100% 100 +

R&D expenditure as a percentage of Of treated water generated from Products offered in 2018-19 to our
Net Turnover Effluent Treatment Plants used for customers
gardening / horticulture purpose

5+ 25 22,681
Decades of experience in the Rain water harvesting pits People benefitted from our CSR
Industry constructed and commissioned activities
during the year

Tree plantation at ECIL to increase Green Cover

05
 Annual Report 2018-19

Financial Highlights

Gross Turnover Net Turnover

(Rs. in Crore) (Rs. in Crore)

2015 1320 2015 1265

2016 1474 2016 1404

2017 1446 2017 1373

2018 1275 2018 1269

2019 2663 2019 2663

PAT EPS
(Rs. in Crore) (in Rs.)

2015 50 2015 307

2016 75 2016 462

2017 58 2017 353

2018 53 2018 323

2019 242 2019 1484

Networth Closing Order Book

(Rs. in Crore) (Rs. in Crore)

2015 714 2015 1719

2016 792 2016 1695

2017 851 2017 2560

2018 849 2018 3520

2019 1026 2019 2826

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 Corporate Overview Statutory Reports Financial Statements

Ten Years at a Glance

(Rs. in Crore)

Particulars 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Gross Turnover
(Inclusive of Excise
Duty) 1104 1298 1474 1729 1456 1320 1474 1446 1275 2663
Net Turnover 1058 1266 1417 1678 1390 1265 1404 1373 1269 2663
Closing Order Book 1490 1148 2425 1756 1932 1719 1695 2560 3520 2826
Material Consumed 713 728 911 1081 754 706 863 822 865 1596
Employee
Remuneration 296 382 357 365 344 340 315 294 365 384
Depreciation 8 9 10 18 19 26 22 25 27 38
Profit Before Tax 54 22 55 31 68 66 81 84 84 367
Provision for Tax 12 (1) 18 5 21 16 6 26 31 125
Profit after Tax 42 23 37 26 47 50 75 58 53 242
Earnings per Share
(in Rupees) 257 140 224 158 290 307 462 353 323 1484
Equity Capital 163 163 163 163 163 163 163 163 163 163
Reserves & Surplus 430 443 469 486 522 550 629 667 686 862
Gross Block 237 242 259 284 318 311 149 170 228 278
Inventory 195 157 198 162 165 171 240 281 581 1009
Debtors 846 809 1011 1159 1177 1207 1435 1374 1693 1615
Working Capital 660 430 343 233 412 379 629 603 771 1044
Net Worth 593 606 629 647 682 714 792 851 849 1026
Production at
Realisable Value
(PRV) 1114 1226 1442 1678 1374 1270 1413 1359 1470 2690
Value Addition 401 498 531 597 620 564 550 537 605 1094

07
 Annual Report 2018-19

Chairman’s Message

Innovation at
the heart of
our business

Dear Shareholders,
It is my honor and privilege to share with you, with a sense of pride, the financial highlights and achievements of your Company for
the fiscal 2018-19. Your Company was able to overcome stiff challenges and meet its customer’s aspirations by delivering quality
products and services in appropriate time limits at the backdrop of research and development, that remain a strong foundation for
our Company.

Financial Highlights
for the year 2018-19
Your Company recorded a turnover of Rs. 2663
Crore in the year 2018-19 as against Rs. 1275
Crore in the year 2017-18. Correspondingly,
the Company achieved a PBT of Rs. 367 Crore
with a PAT of Rs. 242 Crore in 2018-19 against
PBT of Rs. 84 Crore with PAT of Rs. 53 Crore
in FY 2017-18.In line with DPE guidelines and
Presidential Directives, the pay revision was
implemented with effect from 01.01.2017
for executives of your Company. Wage
negotiations were successfully completed
for workmen of your Company as per DPE
guidelines and negotiated wages were
implemented with effect from 01.01.2017.

08
Corporate Overview Statutory Reports Financial Statements
All the business verticals of your Company
Business review have demonstrated a healthy performance
for the current fiscal. The IT & e-Governance
verticals contributed about 61% of the
turnover, primarily because of the supply of
Electronic Voting Machines (EVMs) and Voter
Verifiable Paper Audit Trail (VVPAT) for the
General Elections 2019. The Defence vertical’s
contribution stood at 20% of the turnover,
derived mainly from supply and installation
of Electronic Fuses, Strategic Communication
Networks and Military Radios. The Nuclear
business vertical contributed 13% to the total
turnover with contributions from Control
and Instrumentation Systems for upcoming
Research and Development plus Innovations
Significant (R&D+I) continue to remain the driving force
Achievements in building a growth-oriented company.
Your Company is proactive in identifying
and adopting technologies for developing
new products. The Technology Development
Council (TDC) of the Department steered
the R&D+I effort to enable your Company
in providing new products and customised
solutions to Customers.
During the year, your Company successfully
completed the design, development,
production and deployment of
• Next Generation of EVMs and VVPATs and
provided field services in accomplishing the
successful completion of General Elections
-2019;
Your Company was conferred with the
Recognitions and following awards during the year:
Awards
• ‘Governance Now’ 6th PSU Award 2018 for
Technology Adaptation
• The Prestigious Institute of Engineers India
(IEI) ‘Industry Excellence Award 2018’ as
Nuclear Projects and Passive Catalytic Re-
combiners for operating plants. The Homeland
Security vertical, with contributions from
Integrated Security and Surveillance Systems
and Aerospace vertical, with contributions
from Antenna Systems for Space Programs
contributed 5% and 1% to the total turnover.
Your Company also strengthened its
governance practices with adoption of the
new Accounting Standards IND AS 115, which
was implemented as per revised revenue from
contracts with the customers. Your Company
continued with Provision for pension for the
employees which was started since last year.
• 7.5 meter ‘Ka Band Antenna System’
required for high-end communication
Satellite to cater to Broadband applications
and terrestrial communications;
• Ion Mobility Spectrometry (IMS) based
Trace Detector for explosives detection for
security agencies;
• Web-based On-line Flight Plan System with
a mobile application that allows users of
Airports Authority of India to file Flight Plans
(FPLs);
• 30 varieties of Ultra Stable Power Converters
for Facility for Antiproton and Ion Research
(FAIR ) Germany,
a recognition for demonstrating highest
order of business.
•
44th ELCINA (Electronic Industries
Association of India) Award for Outstanding
Achievements in “PCB Manufacturing” for
the year 2018-19
09

Your Company’s EMI/EMC Test Facility (ETF)
Certification has been granted NABL accreditation as
Received per ISO 17025:2017. This accreditation also
qualifies your Company to be designated
The outlook for the Company is extremely
Outlook for 2019-20 promising yet challenging. Your Company
acknowledges these challenges and is
adequately prepared to meet them and the
associated competition in the Electronics
Manufacturing Sector. Your Company is
suitably positioned with the support of the
Administrative Ministry to take up design,
development and production of Defence
Equipment under ‘Indigenously Designed,
Developed and Manufactured (IDDM)’
category and MAKE II procedures of Defence
Procurement Procedure (DPP).
Your Company has taken initiatives to:
• Upgrade Printed Circuit Board Facility with
the state of art technology to manufacture
High Density Multilayer PCBs
Your Company believes that Human Resources
Talent Acquisition are its biggest strength. Consequently, your
and Management Company assigns a high priority to Talent
Acquisition, Management and Succession
Planning. Structured induction programmes
Your Company has always been in the forefront
Corporate of adopting and practicing the highest
Governance, standards of values, business ethics and full
Sustainability compliance to statutes and procedures. Your
and CSR Board of Directors assign highest priority to
practicing ethical business at all levels in your
Company. Necessary and robust processes,
regulation and checks are in place to ensure
full compliance to Corporate Governance.
The Company is fully committed to include
sustainable development initiatives in its
growth. Your Company is fully committed to
become a water positive corporation with
commissioning of second affluent treatment
10
Annual Report 2018-19
as CAB (Conformity Assessment Body) by
Telecommunication Engineering Center (TEC)
for EMI/EMC testing of all telecom systems to
be inducted in the country.
•
Commission a Combined Altitude
Temperature Humidity (CATH) Chamber,
Highly Accelerated Life Test (HALT) and
Highly Accelerated Stress Screen (HASS)
to augment the in-house testing and
qualification facility
• Construct a Class 10000 Clean Room to
provide controlled environment for high-
end manufacturing
•
Establish High Precision Machines
for production of critical mechanical
components
• Develop Drone Guard Systems
• Produce Super Capacitor based appliances
at various levels with customized knowledge
and skill development capsules have been
implemented to adequately prepare your
Company executives and workmen to
overcome various challenges.
plant of 650KLD was a small step in this
direction. Your Company has eliminated single
use plastic from the corporation since January
2019.
Your Company firmly believes that its
contribution to societal benefits is an
important parameter of its performance and
business sustainability. Accordingly, CSR
activities are undertaken in full compliance
to the promulgated guidelines to ensure that
the benefits reach the intended audience.
Your Company has focused on undertaking
activities and allocating resources for making
“Swachh Bharat” Mission a success and has
Corporate Overview Statutory Reports Financial Statements
contributed a sum of Rs. 136 Lakhs towards
Corporate improving health care, sanitation, education,
Governance, and skill development.
Sustainability
and CSR Your Company has passionately pursued the
use of Rajbhasha in its day to day work and
has been awarded with the Rajbhasha Shield
in the category of Large PSUs in Hyderabad
region for 5th year in a row.
Under the “Skill India” initiative, your Company
imparted Skill Development Training to the
beneficiaries who are mostly unemployed
I would like to reassure every single
Acknowledgments stakeholder that your Company is adequately
prepared to overcome the challenges in the
strategic electronics sector and is well poised
for sustainable growth.
I would like to record my gratitude to the
Board of Directors and members of the
Corporate Management Committee for their
support, guidance and belief in the values of
your Company. Department of Atomic Energy
has provided the mentoring and hand holding
youth belonging to weaker sections of
the Society. The training is provided in the
required domain to equip the trainees with
the required skill sets so as to make them
‘Industry Ready’.
Under Skill Development Training, your
Company has trained 6897 youth in design
and development of academic projects in
electronics and computer software domain.
About 900 polytechnic students have been
provided industrial training of six months
duration as part of their academic curriculum.
that has enabled your Company in meeting its
growth goals. I am thankful to our bankers,
partners, esteemed customers and business
associates for their unflinching support. The
dedication, hard work and commitment of the
executives and workmen of the Company have
been the single most factor in your Company
achieving a niche position in the strategic
electronics industry. It is my firm belief that
our corporation is on a sustainable growth
path and together we make our country ‘Self
Reliant’ in strategic electronics.
Jai Hind!
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
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 Annual Report 2018-19

Operational and Strategic Highlights

1
ECIL in association with BARC,
Mumbai, VECC, Kolkata and RRCAT,
Indore developed Ultra Stable Power
Converters required for the International
Discovery Science Program called
Facility for Antiproton and Ion Research
(FAIR) and shipped the first production
batch consisting 67 Nos to Germany.
ECIL will be supplying totally 533 Nos
of such Ultra Stable Power Converters
costing around 9 Million Euros in the
next two years for this program.

2
ECIL successfully manufactured latest
model Electronic Voting Machines
(EVM) and Voter verifiable Paper Audit
Trail (VVPAT) Equipment at the newly
established Secure Manufacturing
Facility (SMF) and supplied to Election
Commission of India for General
Elections - 2019.

3 Handing over of Ultra Stable High Power Converters to FAIR, GERMANY

ECIL in association with IGCAR, Kalpakam
and RRCAT, Indore successfully
developed Ion Mobility Spectrometry
(IMS) based Trace Detector for detecting
explosives.

ECIL manufactured, tested and handed

over 12 nos of these systems to IB
Director in for field deployment by
various security agencies.

Electronic Voting Machine (EVM) and Voter Verifiable Paper Audit Trail (VVPAT)

12
Corporate Overview Statutory Reports Financial Statements

4
For the first time in the country, ECIL
in association with Space Application
Center, Ahmedabad designed,
manufactured and commissioned a 7.5
meter Ka Band Antenna System required
for high end communication satellite to
cater to Broadband applications and
terrestrial Communications.

Ion Mobility Spectrometry (IMS)

5
based Trace Detector for detecting
explosives
ECIL successfully manufactured BARC
7.5 meter Ka Band Antenna developed Passive Catelytic Recombiner
Devices required for removing
Hydrogen gas in Reactor Building during
postulated severe accident conditions in
Nuclear Power Plant and delivered for all
operating plants and upcoming 700 MW
projects.

6
ECIL successfully designed,
manufactured and delivered 1000nos
of Electronic Voting Machines for the
requirements of Election Commission of
Bhutan.
BARC developed Passive Catelytic Recombiner Devices

Flagging of EVM consignment to Election Commission of Bhutan

13
 Annual Report 2018-19

Innovation at heart of our business

One of the key pillars of our success is our legacy of innovation. Our consistent
efforts are to provide innovative technology solutions driven by spirit of self-reliance,
confluence of customers, market insight and the strategic needs of the country.
We associate ourselves with leading R&D creativity into superior technologies and edge, both today and in the future. Our
centers and Academic Institutions to innovative product platforms. works in development and pioneering
deliver ground breaking products with of new products in India, has led us to
the strategic customer inputs throughout ECIL develops products which earn the name and fame of torch-bearer
the product development cycle. With are underpinned by cutting-edge of Electronics and IT revolution in the
our strong collaborative network, we technologies and we are continuing country.
are able to transform diverse ideas and to invest to maintain our competitive

916 Rs. 47.69 Crore

Qualified and well trained engineers R&D expenditure for FY 2018-19
across our operations as on
31st March, 2019

RF seeker jointly developed by ECIL and DRDO for missile program

14
 Corporate Overview Statutory Reports Financial Statements

Following are the highlights of innovations during the year 2018-19:

Flash X-Ray (FXR) System is developed

to provide an unique method of imaging
very fast events, which cannot be
captured utilizing normal High Speed
and Ultra High Speed photographic
techniques. The System is designed
to give extremely short duration (sub
microsecond) and very high intense
bursts of X-Ray Radiation. This innovation
has significant applications in Nuclear,
Defence, Space and other industries.

Portable Gamma Survey Meter is

developed for ambient equivalent
dose rate measurement. The meter is
Flash X-Ray (FXR) System
designed with two detectors – one with
Cesium Iodide and PIN diode to cover
the range from 1µR/h to 10µR/h and
another with Cesium Iodide with Silicon
Photo Multiplier to cover the range from Monitoring and Control System developed for EMISAT launch implements the
1µR/h to 100mR/h. Ground Station operations in a fully automated and controlled environment. It
automates the work flow of Satellite Tracking for Satellite Pass Scheduling. The software
also monitors and controls the RF, IF and other baseband devices connected in the
network. This was successfully utilised during the launch of PSLV-C45

Portable Gamma Survey Meter MC Software Screenshot

15
 Annual Report 2018-19

A Responsible business entity

In order to build a sustainable business organisation, our focus has always been on
creating long-term value for our stakeholders, especially for the society in which we
operate.
As a responsible corporate, we seek to actively contribute towards well-being of the people and upliftment of the society as whole
along with managing our environment footprints. Our key focus areas of CSR activities include:

Health & Sanitation Education Environment Contribution to Govt. Funds

22,681 Rs. 1,35,61,728

People benefitted from our CSR Spent on CSR activities (in Rs.)
activities

23% 25%

Break-up of
5%
CSR Spent Health & Sanitation

Education

Environment

Contribution to Govt. Funds

47%

16
Corporate Overview Statutory Reports Financial Statements

17
 Annual Report 2018-19

Rear Admiral Sanjay Chaubey (Retd.)

Shri D S Choudhary

Shri M R Ranjit Karthikeyan

Shri Ajay Ramesh Sule

18
 Corporate Overview Statutory Reports Financial Statements

Vice Admiral Atul Kumar Jain, AVSM, VSM

Air Marshal Rajeev Sachdeva, AVSM

Shri Gulshan Rai Wadhwa

Dr. S Mervin Alexander

19
 Annual Report 2018-19

Board of Directors

Rear Admiral Sanjay Chaubey (Retd.)

Chairman & Managing Director

Shri Kishor Rungta Shri D V Shastry

Director (Finance) Director (Personnel)
(Upto 01.02.2019) (From 12.12.2018 to 10.05.2019)

Shri M A Inbarasu Dr. S Mervin Alexander

Jt. Secretary (I&M) Jt. Secretary (I&M)
Department of Atomic Energy Department of Atomic Energy
Govt. Nominee Director Govt. Nominee Director
(Upto 25.03.2019) (From 16.04.2019)

20
 Corporate Overview Statutory Reports Financial Statements

Shri M Bharath Kumar Shri D S Choudhary Vice Admiral Atul Kumar Jain, AVSM,
Executive Director (E&I) Director (O) VSM
NPCIL NPCIL DCIDS (PP&FD)
(Upto 31.12.2018) (From 12.02.2019) Ministry of Defence
(From 27.02.2019 to 29.05.2019)

Air Marshal Rajeev Sachdeva, AVSM Shri Gulshan Rai Wadhwa Shri M R Ranjit Karthikeyan
DCIDS (PP&FD) Ex-Principal Advisor (Cost), DGAD, Ministry Chartered Accountant
Ministry of Defence of Commerce, Government of India Independent Director
(From 21.07.2019) Independent Director (From 22.10.2018)
(From 01.08.2018)

Shri MSRS Prasad

Company Secretary

21

Senior Management
Shri N Rambabu
Executive Director (Nuclear)
Smt Swarna Sankaran
Executive Director (Finance)
Brig. Kuldeep Singh Dalal (Retd.)
Executive Director (North)
Shri Anurag Kumar
General Manager (Security)
Dr. Braja B Nayak
General Manager
(Aerospace & Operations)
Shri V Ajaya Babu
General Manager (Corporate Purchase
& Corporate Quality)
Shri Utpal Sen
General Manager (Strategic Electronics
Division & Marketing)
Shri Anil Kumar Singhai
General Manager
(Customer Support Division)
Shri K C Meenakshi Sundaram
Head (Corporate Vigilance Department)
22
Annual Report 2018-19
(as on the date of AGM)
Wg. Cdr. Hemant Lokras (Retd.) Shri N S Sekhar Babu
Head (Corporate Planning & Head (Engineering Services Division)
Performance Monitoring & Corporate
Communications) Shri B Srinivasa Rao
Head (Telecommunication Division)
Shri K V S N Raju
Head (Electronic Warfare Division) Shri C S Ramteke
Zonal Manager (West)
Shri R N Mishra
Head (Servo Systems Division) Shri D Debnath
Zonal Manager (East)
Shri Himadri Sekhar Mondal
Head (Corporate Business Development Shri R Mahendran
Group & ITSD) Zonal Manager (South)
Shri Asifulla Baig
Head (Personnel & Administration)
Shri G V Rao
Head (Control & Automation Division)
Shri V V Satyanarayana
Head (Instruments & Systems Division)
Smt T Praseeda
Head (Security Systems & Projects
Division)
Shri A Venugopal
Head (Antenna Products & Satcom
Division)
Corporate Overview Statutory Reports Financial Statements

Awards and Recognition

Governance Now 6th PSU Award - 2019 IEI Industry Excellence Award 2018

Skoch Award of Merit and Skoch award for R&D for the 44th ELCINA Award for Outstanding Achievements in
year 2017-18 “PCB Manufacturing” for the year 2018-19

23
 Annual Report 2018-19

Corporate Information

Board of Directors Remuneration Committee Zonal / Branch Offices

Rear Admiral Sanjay Chaubey (Retd.) Shri Gulshan Rai Wadhwa North Zone
Chairman & Managing Director Independent Director Electronics Corporation of India
Dr. S Mervin Alexander Shri M R Ranjit Karthikeyan Limited
Govt. Nominee Director Independent Director B -1, B - 2 & B – 7, DDA Local
Shopping Center
Air Marshal Rajeev Sachdeva, AVSM Shri D S Choudhary A Block, Ring Road, Naraina
Director Director New Delhi – 110 028
Shri D S Choudhary
West Zone
Director Auditors
Electronics Corporation of India
Shri Gulshan Rai Wadhwa M/s Ramanatham & Rao., Chartered Limited
Independent Director Accountants
1207, Veer Savarkar Marg
Shri M R Ranjit Karthikeyan Dadar, Prabha Devi
Independent Director Cost Auditors Mumbai – 400 028

M/s Nageswara Rao & Co., Cost East Zone

Chief Vigilance Officer Accountants Electronics Corporation of India
Limited
Shri M Srinivas, IDAS
Bankers 2nd & 4th Floor, Apeejay House
15 Park Street, Kolkata – 700 016
Company Secretary State Bank of India
South Zone
Shri MSRS Prasad Bank of Bahrain & Kuwait BSC
Electronics Corporation of India
ICICI Bank
Limited
Audit Committee YES Bank
Panagal Building, Ground Floor
HDFC Bank
Shri Gulshan Rai Wadhwa 1-A, Jeenis Road,
Independent Director IndusInd Bank Saidapet, Chennai – 600 015
Allahabad Bank
Shri M R Ranjit Karthikeyan Bangalore Branch
IDBI Bank Limited
Independent Director Electronics Corporation of India
Federal Bank
Limited
Shri D S Choudhary
Director 1/1, 2nd Floor, Jeevan Sampige
Registered Office Complex
LIC Building, Sampige Road
Corporate Social Electronics Corporation of India
Malleswaram, Bangalore – 560 003
Responsibility Committee Limited
ECIL Post, ECIL
Shri M R Ranjit Karthikeyan
Hyderabad
Independent Director
Telangana – 500 062
Shri Gulshan Rai Wadhwa
Independent Director

Shri D S Choudhary
Director

24
 Corporate Overview Statutory Reports Financial Statements

Directors’ Report
To
The Members of
Electronics Corporation of India Limited

Gentlemen,

Your Directors have immense pleasure in presenting the 52nd Annual Report on the performance of your Company along with
Audited Financial Statements for the year ended 31st March, 2019.

Performance Highlights
(Rs. in Crore)
Sl. Particulars Financial Year
No. 2018-19 2017-18
i) Gross Turnover 2663 1275
ii) Production at realizable value 2690 1470
iii) Profit before depreciation, finance costs and tax 428 131
iv) Finance costs 23 20
v) Depreciation 38 27
vi) Profit before tax 367 84
vii) Provision for tax 125 31
viii) Profit after tax 242 53
ix) Net worth 1026 849
x) Capital employed 1216 927
xi) Value addition 1094 605

Financial Performance
During the year, the Company recorded a gross turnover of
Rs. 2,663 Crores compared to Rs. 1,275 Crores achieved in the
previous year. This year the Company achieved a land mark
turnover because of time bound supply of EVM and VVPAT
for General Elections 2019. The Company has recorded Profit
Before Tax of Rs. 367 Crores compared to Rs. 84 Crores in the
previous year. Profit After Tax for the current year is Rs. 242
Crores compared to Rs. 53 Crores for the previous year.
Defence: Rs. 532.60 Crores @ 20% of the Turnover. The major
contribution is from Electronic Fuzes, Strategic Communications
Network and Military Radios.
Aerospace: Rs. 26.63 Crores @ 1% of the Turnover. The major
contribution is from supply of various types of Antennas and Rate
Gyroscopes for national Space Program and Solid State Cockpit
Voice Recorders.

Security: Rs. 133.15 Crores @ 5% of the Turnover. The major

Major achievements during the year
During the financial year 2018-19, various verticals of the Company
contributed as follows towards the turnover:
Nuclear: Rs. 346.19 Crores @ 13% of the Turnover. The major
contribution came from Nuclear Instrumentation Package for
upcoming Nuclear Power Plants, life cycle support for C&I Systems
and Passive Catalytic Recombiner Devices (PCRD) for operating
Nuclear Power Plants.
contribution is from the Access Control Systems, Explosive
Detectors, Integrated Security & Surveillance Systems and various
types of Jammers.
IT & e-Governance: Rs. 1624.43 Crores @ 61% of the Turnover.
The major contribution is from supply of EVMs and Voter Verifiable
Paper Audit Trail (VVPAT) Equipment for General Elections 2019,
EVM Power Packs and IT training.

25

Share Capital & Unsecured Loans
The authorised share capital of the Company has remained
unchanged at Rs. 200.00 Crores. The called up and paid up Share
capital as on 31st March, 2019 stood at Rs. 163.37 Crores. Further,
no loans were taken from the Government during the year.
Dividend
Your Directors are pleased to recommend a dividend @ Rs. 153.02
per share of Rs. 1000/- each amounting to Rs. 25.00 Crores for
the year 2018-19. The dividend shall be paid after approval at the
Annual General Meeting.
Transfer to Reserves
During the year under review no amount is being proposed to be
transferred to General Reserve.
Significant Achievements
New Products Introduced
Your Company has been persistent in its efforts to provide
innovative technology solutions which are driven by spirit of self
reliance, customer’s requirement, market insight and the strategic
needs of the nation.
Research and Development with Innovations (R&D+I) continues
to remain the Company’s hall mark. The Company is in active
collaboration with leading R&D organizations and Academic
Institutions of the nation. In addition the strategic customer inputs
throughout the product development cycle have enabled us to
successfully develop products that are fully compliant to user
requirement. With the collaborative network the Company is able
to transform diverse ideas and creativity into superior technologies
and innovative product platforms.
The new products introduced during the year covered major
sectors in which the Company operates. Some of the new
products introduced during the year include Flash X-Ray System,
NUCON Programmable Logic Controllers, Upgraded Dosimeter,
Remote Dosimeter System, Micro R Survey Meter, Monitoring and
Control system for EMISAT Launch, Passive Catylitic Recombiner
Device (PCRD) and Class Room Jammer. Details of new products
introduced during the year are part of the annexure attached to
this report.
MOU
Your Company has been signing a Memorandum of Understanding
(MoU) every year with the Department of Atomic Energy,
Government of India. The performance of your Company for the
year 2017-18 has been rated ‘GOOD’. The MoU self-evaluation
report for 2018-19 has been submitted to the Department of Public
Enterprises and the rating is under finalization by the Government.
26
Annual Report 2018-19
Order Book Position
Your Company had an order book position of Rs. 2826 Crore as on
1st April, 2019 out of which Rs. 1589 Crore are executable during
the year 2019-20. The Company has booked the total order of Rs.
2034 Crore during the year.
Research and Development
Your Company has a strong belief that Research & Development
plus Innovation is the key enabler of an electronics organization
to meet the challenges from fast changing technologies, business
dynamics and competition from new entrants. To meet these
challenges of the business, your Company has established strong
R&D eco-system with motivated engineers to cater for state-of-the-
art needs in the strategic business areas of the Company.
ECIL has always accorded a high priority for continual improvement
in products and processes. While each strategic business unit
carries out developmental activities in its areas of interest, the
Corporate R&D unit coordinates with all the SBUs for undertaking
development activities which involve more than one SBU.
During the year your Company continued its collaborations with
several national laboratories and premier engineering institutions
with an emphasis to commercialize the technologies developed by
them. Your Company also enlists their support in developing new
products as well as enhancements to the existing products to meet
the dynamic requirements of customer.
Quality
• Surveillance audits of ISO 9001:2015 has been completed
in CAD & RID Divisions.
• Internal Audits of ISO 9001:2015 has been completed
in ISG, EMSD, RID, AP&SD, SED and IT&TG (TCD & CSD)
Divisions.
• Re-certification audit of ISO 9001:2015 completed in
ISG&EMSD Division.
• Quality Management: Re-assessment Audit of SHE
Management System as per ISO 14001:2015, BS OHSAS
18001:2007 and PA 99:2012 completed during September,
2018 and recommended for extension of certification.
• Re-certification Audit of NABL as per ISO/IEC 17025:2017
completed during November, 2018 and recommended
for continuation of the accreditation for Calibration &
Measurements Laboratory.
New Facilities
The Company has established a Printed Circuit Board Facility
to meet the PCB requirement in its various sectors of operation.
The facility was upgraded with the state of art technology to
 Corporate Overview Statutory Reports Financial Statements

manufacture High Density Multilayer PCBs and installed Automatic
Optical inspection and Flying probe bare board tester.
The Systems and Quality Assurance Group (SQAG) facilities has
been upgraded with Combined Altitude Temperature Humidity
(CATH) Chamber , Highly Accelerated Life Test HALT & Highly
accelerated Stress Screen (HASS) to augment the in-house testing
facility.
Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo
Particulars of Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo as required pursuant to
Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of
the Companies (Accounts) Rules, 2014, as amended from time to
time are given in Annexure- ‘A’ to this report.
Particulars of Employees
Pursuant to Section 197(12) of the Companies Act, 2013, read with
Rule 5 (1) of The Companies (Appointment and Remuneration of
Managerial Personnel) Rules, as amended, none of the employees
of the Company were in receipt of remuneration in excess of limits
prescribed under the said rules.
Extract of Annual Return
In accordance with Section 134(3) of the Companies Act, 2013 an
extract of the Annual Return in the prescribed form in Form MGT-9
is annexed to this report as Annexure ‘B’.
Loans / Guarantees / Investments
Particulars of Investments, Loans and Guarantees as required under
Section 186 of the Companies Act, 2013 are provided in Financial
Statements (refer Note No.7 & 17).
Management Discussion and Analysis
The Management Discussion and Analysis Report as required
under the guidelines issued by the Department of Public
Enterprises, Government of India on Corporate Governance
for Central Public Sector Enterprises (CPSEs) is annexed as
Annexure ‘H’ to this report.
Human Capital
The Company being a technology-oriented organization always
considers human resource as its most vital asset and core strength.
Company has been making significant investments in training
and skill development of its human resource. The Company
believes that the assessment of human resource requirements
and the development of skill/knowledge to meet the emerging
business requirements is an on-going process. Accordingly, the
management has put a system of continuously monitoring the
requirements for recruitment and training policies to strengthen
the managerial/technical competencies of the executives and
workmen to enhance the skill/knowledge.
During the year total 134 persons were recruited at various levels
including two higher appointments. Total 232 employees were
separated from the Company.

As on 31st March, 2019 the manpower of the Company stood at 1894 employees. Your Company has complied the Government of India
guidelines on reservations. The group-wise break-up including SC / ST employees in the Company as on 31st March, 2019 is as under:

Category Group A Group B Group C Group D

Total employees 1136 283 340 133
Scheduled Castes 198 50 55 38
(17.43%) (17.67%) (16.18%) (28.57%)
Scheduled Tribes 95 44 38 3
(8.36%) (15.55%) (13.82%) (2.26%)

Human Resource Development and Training

During the year 2018-19, the Company continued its efforts to
develop the technical, functional, managerial and leadership
competencies of employees and workmen. Corporate Learning
and Development Centre has organized 23 in-house Training
Programmes on various technical, functional, safety and
management topics by eminent faculty from reputed Institutions
and internal faculty. 125 employees were nominated for
participating in the training programmes organized by premier
educational institutions and reputed training organisations in India.
In the Financial Year 2018-19, your Company carried out an
assessment of its HR policies and practices against the globally
acclaimed People Capability Maturity Model (PCMM) frame
work. The Company was assessed at Maturity Level 2.
Employee Relations:
Employee relations continued to be smooth, cordial and
harmonious across the Company. Regular interactions took
place among the management, executives and the workmen

27

through various forums such as Corporate Management
Committee at the apex level and the Divisional Production
Committees at base level. The industrial relations situation was
normal during the year 2018-19.
Personnel & Welfare:
The Company is proud to inform that the industrial relations
have been very cordial and harmonious during the year. All
Associations, Statutory Committees, Recognized Union and
other participative forums have extended their cooperation at
all levels. The culture of participative management continues to
be the hall mark of your Company.
The Company has assigned the highest priority and
consequently taken care of the medical needs of the employees
through its medical policy as also the medical needs of the
retired employees. The employees were encouraged to
participate in various programmes and sports meets organized
by DAE.
Workers participation in Management:
The participation of workmen and officers representatives in
the joint forums has been a tradition in your Company. The
representatives of workmen actively participate in the following
meetings:
a) Participation in Sectional/Divisional Production
Committee: The Divisional Production Committees are
constituted under the Scheme of Workers Participation
in the Management. The Head of the Division concerned
is the Chairman for the Committee and the members are
drawn from Production shops, Quality Control, Materials
Planning, Personnel and Finance Groups. The meetings
are convened periodically for discussion on the issues
pertaining to working plans to realize the production
targets, sales targets and sundry debts, order booking
status, etc.
b) Corporate Management Committee: It is a high-level
policy making body at the corporate level. The committee
is headed by Chairman & Managing Director, Functional
Directors and Heads of Business Divisions/Groups are the
members. The President and Secretary of ECIL Worker’s
Union and ECIL Officer’s Association are the special invitees
to the meetings of the committee.
c) Apex Committee: The Apex Committee is constituted
under the Scheme of Workers Participation in Management
headed by Chairman & Managing Director. Other members
include Functional Directors on the Board, Head, Personnel
Group and President & General Secretary of ECIL Worker’s
Union and President and Secretary of Officer’s Association.
The Committee meets periodically and deliberates
to formulate the way ahead on the issues concerning
improvement of production, performance and other major
policy issues for smooth functioning and harmonious
industrial relations in the Corporation.
28
Annual Report 2018-19
Social Justice:
The Company has constituted a separate cell to look after and
safeguard the statutory provisions for SC/ST/OBC & Persons
with Disabilities (PwD) category of employees. The reservation
cell assists the liaison officer who looks after the welfare &
safeguard of SC/ST/OBC & PwD employees and special
emphasis is given for their welfare.
Prevention of Sexual harassment at workplace:
Women enjoy significant positions at all levels in your
Company. The Company provides growth opportunity for
the woman in line with Government of India philosophy
on the subject. Woman employees are encouraged to take
higher responsibilities across the organization at all levels and
represent in all committees including Departmental Promotion
Committee. During the year International Women’s Day was
celebrated with fervor and joy.
In line with the requirement under the provisions of Sexual
Harassment of Women at work place (Prevention, Prohibitions
and Redressal) Act, 2013, and Rules made there under, Internal
Complaints Committee is in place to redress the complaints
received regarding sexual harassment. All employees
(permanent, contractual, temporary, trainees) are covered
under this policy. No complaints were received during the year
and there are no pending complaints at the beginning of the
year.
Implementation of the Rights of Persons with
Disabilities Act, 2016
The Company is continuously implementing the guidelines
issued by the Government of India from time to time with regard
to recruitment, promotions, grant of applicable allowance, free
transport and income-tax exemption. Your Company has a
total 138 differently abled persons employed as apprentices &
consultants. The Company is taking care of Safety requirements
of employees at workplace keeping in view of their disability by
providing necessary safety gadgets depending on their nature
of work. Separate entry/exit gates were made available at Main
Gate to facilitate free movement during incoming/outgoing shift
timings. Suitable sanitary fittings are provided at the rest rooms
for the convenience of such employees. The orthopedically
challenged employees who could not walk from Main Gate to
work locations are being permitted to enter into the factory on
their Trio Motor Cycle up to the work spot. Differently abled
persons also been provided with transportation from main gate
to work spot and vice versa.
Right to Information Act
The Company has put in place the appropriate mechanism
across the Company for promoting transparency and
accountability in compliance of the Right to Information Act,
2005. The Company nominated Central Public Information
Officer/Appellate Authority at its Corporate Office to provide
 Corporate Overview Statutory Reports Financial Statements
required information under the provisions of the Act. The
Company has posted the information required under the
provisions of Section 4(1)(b) of Right to Information Act, 2005
on its website. For the Financial Year 2018-19 the Company has
received 214 RTI requests for information in addition to the 106
requests which are pending at the end of the previous year.
Information was provided against 213 requests, 4 applications
were returned due to non-conformity and the balance 103
was pending for disposal as on 31st March, 2019. Most of the
requests were for information on personal, service related and
commercial related matters.
Implementation of Official Language Policy
In pursuance of Government of India Guidelines on promoting
Indian Languages and Rajbhasha ‘Hindi’ your Company during
the year made all round efforts to promote use of Hindi in its
official works. It is a matter of pride that the Company has been
awarded with ‘Rajbhasha Shield’ (1st Prize) by the Town Official
Language Implementation Committee (PSUs) Hyderabad-
Secunderabad for its outstanding implementation of Official
Language Implementation Policy. The prize has been received
by ECIL for the fifth time in a row.
Technical article published in ‘ECIL Gaurav’ Hindi Magazine was
awarded with ‘Rajbhasha Gaurav’ 1st prize (non-Hindi Category)
at ‘All India level’ by the Department of Official Languages. ECIL
Gaurav is a half yearly magazine bring published regularly.
Apart from this, Corporate R&D Report also being published in
bilingual. ‘ECIL Gaurav’ has also been awarded with 1st Runner
up award by Department of Atomic Energy under PSU category.
Various Hindi competitions were conducted for Hindi and Non-
Hindi speaking employees during ‘Hindi Week’ and ‘World
Hindi Day’.
Rajbhasha inspection was carried out at Zonal Offices situated
in Kolkata, Chennai and Unit office at Tirupati. The documents
placed before the Committees of Parliament, various notes
submitted to the Government, MoUs, etc., have been prepared
in bilingual. Hindi incentive scheme for use of Hindi in official
work and special Hindi Incentive allowance for Typists/
Stenographers for doing their official work in Hindi, in addition
to English has been implemented.
Awards
During the year the Company received the following awards
• 6th Edition of Governance Now PSU Award in 2018 under
the category of Technology Adaptation
• Institution of Engineers (India) Industry Excellence Awards
for 2018
• ELCINA EFY Award for Outstanding Achievement in
Research & development for 2017-18
• SKOCH Order of Merit and SKOCH Award for R&D for the
year 2017-18
Joint Venture
ECIL-Rapiscan Limited, Joint Venture Company is into the
business of manufacturing and selling of X-ray baggage
inspection systems and post-sale services. During the year the
JV Company has achieved a Total Income of Rs. 81.68 Crores
out of which Rs. 76.65 Crores is from sale of X-Ray Baggage
Inspection Systems (XBIS) & Spares, services and Rs. 5 Crores is
other income. The profit before depreciation & tax is Rs. 11.38
Crores compared to Rs. 8.84 Crores for the previous financial
year. JV Company achieved profit after tax of Rs. 8.32 Crores
compared to Rs. 4.56 Crores for the previous financial year and
recorded around 80% increase in net profits.
Since the envisaged Make in India program of the XBIS did
not take off as envisioned in the formation of JV, a proposal for
dissolution of the Joint Venture Company has been proposed
by the Joint Venture partner. A valuer was appointed for
conducting the financial due diligence of the Joint Venture.
Based on the valuation report submitted, the Joint Venture
partner has made an offer to take over the ECIL share and
ECIL is yet to take a decision in this regard. Further, presently
no products are being manufactured and sold by ECIL to the
Joint Venture Company as part of Joint Venture Agreement. In
line with the requirement the consolidated financial statements
have been prepared and form part of this report.
A Statement containing the salient features of the financial
statement of joint venture annexed in the prescribed format
AOC-1 as Annexure I.
Corporate Governance
The Department of Public Enterprises has laid down the
Guidelines of Corporate Governance for CPSEs. The Department
of Atomic Energy (DAE), the Administrative Ministry of ECIL has
directed to comply with the guidelines.
The Board Members and senior management have reaffirmed
the compliance with the Code of Conduct. A report on
Corporate Governance is given as Annexure ‘C’.
The Company has obtained a Certificate from Shri N.V.S.S.
Suryanarayana Rao, Practicing Company Secretary regarding
compliance of conditions of Corporate Governance as
indicated in the DPE Guidelines. The Compliance certificate is
annexed to this report as Annexure-‘D’.
The Practicing Company Secretary has observed that the Company
has complied with the conditions of Corporate Governance as
indicated in the DPE Guidelines except for the appointment of
sufficient number of Independent Directors on the Board. It is
hereby informed that the appointment of Independent Directors
is done by the Government of India and the said appointment of
Independent Directors is pending at the appropriate authority.
29
 Annual Report 2018-19

Sustainability Report
The DPE guidelines on Sustainable Development for CPSEs require CPSEs to disclose their Sustainable Development efforts in a
‘Stand Alone Report’ or as a separate chapter in the Annual Report. Pursuant to this requirement, the following activities have been
undertaken during the year 2018-19:

Sl. Sustainability Project undertaken by the

Achievement
No. Company
1. Energy conservation 500 kWp Roof Top Solar system produced 7,81,721 units of power
and consumed.
Replacement of 400W & 250W Conventional type security lighting
in factory with 200W and 100W LED lighting respectively was
completed and energy saving is observed.
Replacement of 80W Fluorescent Lighting with 40W LED fixtures in
false ceiling was undertaken in SMD, RPD, RFPA & ISG.
All Conventional Window Air Conditioning Units were replaced
with Star rated Energy efficient Split Air Conditioning Units.
2. Re-Use of ETP treated water In Effluent Treatment Plants, treated water generated is 100% used
for gardening / horticulture purpose with the help of 5 HP solar
based pump set supplied by BARC at ETP-2 and Electricity driven
pump set at ETP-1. This is replacing the use of fresh water.
3. Drip Irrigation System for on land gardening 4 Division lawns were equipped with drip irrigation system to
conserve water used for on land gardening.
4. Rain water harvesting pits with injection bore wells 25 No’s of 9 Cum capacity Rain water harvesting pits with 6 inch
dia injection bore wells were constructed & commissioned. It was
observed that the ground water table is increased due to rain
water recharge in the range of minimum 1.2 meter to 10.2 meter
depth in the bore wells.
Under CSR 10 No’s of 9 Cum capacity Rain water harvesting pits with
6 inch dia injection bore wells were constructed & commissioned
at Government Schools.
5. Tree plantation 1000 Nos of tree saplings were planted & >80% is the survival rate.
Green Cover in the factory premises is increased.
6. Vermi Compost Plant Vermi Compost plant was commissioned and every 45 days cycle
produces a Thousand Kilograms of manure. It is used for in-house
gardening & nursery development purpose.
7. Dry Leaves composting pits Four numbers of 10 Cu.M pits were dug one each at Canteen,
Cycle stand, RCD and IT&TG. Dry leaves were buried in layers
of one feet depth and covered with a layer of 5 inch earth and
again one layer of dry leaves & earth. Like this over a period of 3-4
months time up to Top and allowed to bio-degrade naturally. After
a year the matured earth is excavated back and used to improve
the soil conditions for development of existing and new lawns.

Statutory Auditors Comments of the Comptroller and Auditor

The Statutory auditors of your Company have been appointed by
the Comptroller and Auditor General of India. M/s. Ramanatham
& Rao, Chartered Accountants have been appointed as statutory
auditors of the Company for the year 2018-19. The Company’s
responses to the statutory auditors’ qualifications on the
accounts of the Company for the year ended 31st March, 2019
are furnished at Annexure ‘E’ to this report.
General of India
The Annual Accounts for the year ended 31stMarch, 2019have
been reviewed by Comptroller and Auditor General (C&AG) of
India. There are nil comments from the Comptroller and Auditor
General of India under Section 143(6) of the Companies Act,
2013 on the Accounts of your Company for the year 2018-19 as
given in Annexure ‘F’ to this report.

30
 Corporate Overview Statutory Reports Financial Statements
Cost Auditors
Pursuant to Section 148 of the Companies Act, 2013 read with the
Companies (Cost Records and Audit) Rules, 2014 (as amended),
the cost records maintained by the Company in respect of its
manufacturing activities are required to be audited by the Cost
Auditor. The Board of Directors has appointed M/s Nageswara
Rao & Co., Cost Accountants, Secunderabad as Cost Auditors
for the Financial Year 2018-19. The Cost Audit Report for the
Financial Year 2018-19 will be filed with the Central Government
within the stipulated time.
Vigilance
During the year 2018-19, the thrust of the Corporate Vigilance
Department (CVD) was to incorporate vigilance as a part of all
activities and make it as a managerial function. Continuing with
the initiatives taken in the previous years, the CVD focused on
preventive vigilance in a proactive and participative manner.
During the year, five complaints were received and two
complaints were disposed off. Three complaints were pending
at the end of the year 2018-19. One departmental enquiry
proceeding was completed and final order issued for conclusion.
Business Divisions are maintaining searchable vender database
and continuing the e-tendering system. During the year 1086
Executives have filed Immovable Property Returns online.
Vigilance Awareness Programs have been conducted during
vigilance awareness week in November 2018 and GET induction
training program.
Related Party Transactions
There were no materially significant related party transactions
with the Company’s Promoters, Directors, Management or their
relatives, which could have had a potential conflict with the
interests of the Company. Transactions with related parties that
were entered into during the financial year were on an arm’s
length basis and were in the ordinary course of business. All
Related Party Transactions are placed before the Audit Committee
as also the Board for approval, if required. Members may refer
the note no. 46 to the Financial Statements for details of related
party transactions. Particulars of contracts or arrangements with
related parties referred in Section 188 (1) of the Companies Act,
2013, in the prescribed Form AOC-2, are given as Annexure ‘J’.
Board Meetings, Change in Directors and Key
Managerial Personnel
During the year Five Board meetings were held, the details
of which are given in Corporate Governance Report which is
annexed to this report.
Following changes took place in the Directorship & Key
Managerial Personnel of the Company:
Shri M Bharath Kumar, ceased to be Director of the Company
w.e.f. 31st December, 2018 on attaining superannuation.
Shri Kishor Rungta, has demitted the office of Director (F) on
1st February, 2019 consequent to his appointment as Chairman
& Managing Director of Fertilizers and Chemicals Travancore
Limited.
Shri M A Inbarasu, Government Nominee Director also demitted
the office of Director of the Company w.e.f. 25th March, 2019 on
being relieved from the post of Joint Secretary (I&M), Department
of Atomic Energy.
Shri D V Shastry who assumed charge as Director (Personnel) on
12th December, 2018 was relieved from the office of Director
(Personnel) w.e.f. 10th May, 2019 on acceptance of his resignation
by the appointing authority.
Vice Admiral Atul Kumar Jain, AVSM, VSM who was appointed as
Director w.e.f. 27th February, 2019 ceased to be Director of the
Company on 29th May, 2019 consequent on his relinquishment
of office of DCIDS(PP&FD), Ministry of Defence.
The Directors would like to place on record their sincere
appreciation for the valuable insights, guidance provided and
service rendered by them during their tenure.
Shri Gulshan Rai Wadhwa, was appointed as Independent
Director on the Board of the Company w.e.f. 1st August, 2018 by
the Government of India.
Shri M R Ranjit Karthikeyan, was appointed as part-time
Independent Director on the Board of the Company w.e.f. 22nd
October, 2018 by the Government of India.
Shri D S Choudhary, Director (Operations), NPCIL has been
appointed as Ex-officio Director on the Board of the Company
w.e.f. 12th February, 2019 by the Government of India.
Dr. S Mervin Alexander, Joint Secretary (I&M), Department of
Atomic Energy has been appointed as Government Nominee on
the Board of the Company w.e.f. 16th April, 2019.
Air Marshal Rajeev Sachdeva, AVSM was appointed as ex-officio
Director on the Board of the Company w.e.f. 21st July, 2019 by
the Government of India on taking over charge as DCIDS (PP
&FD), Ministry of Defence in place of Vice Admiral Atul Kumar
Jain, AVSM, VSM.
Declaration from Independent Directors
The Company has received necessary declaration from each
Independent Director of the Company under Section 149(7) of
the Companies Act, 2013 that the Independent Directors of the
Company meet with the criteria of their Independence laid down
in Section 149(6) of the Companies Act, 2013.
31

Directors’ Responsibility Statement
Pursuant to Section 134(3)(c) and 134(5) of the Companies Act,
2013, to the best of their knowledge and belief and according
to the information and explanations obtained by them, your
Directors state that:
(a) in preparation of accounts for the financial year ended 31st
March, 2019, the applicable accounting standards have
been followed along with proper explanation relating to
material departures;
(b) the accounting policies have been selected and applied
them consistently and made judgments and estimates,
that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as on 31st
March, 2019 and of the profit and loss of the Company for
the year ended on that date;
(c) proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of
Companies Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and
other irregularities;
(d) the Accounts have been prepared on a ‘going concern’
basis;
(e) internal financial controls have been laid down and that
such controls are adequate and were operating effectively
during the year ended 31st March, 2019; and
(f) proper systems have been devised to ensure compliance
with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
Corporate Social Responsibility
Pursuant to the provisions of Section 135 of the Companies
Act, 2013, the Companies (Corporate Social Responsibility
Policy) Rules, 2014 read with various clarifications issued by
Ministry of Corporate Affairs and DPE Guidelines, the Company
has undertaken various activities as per the CSR Policy of the
Company. The Programmes/Initiatives/Projects are taken-up in
line with the Schedule-VII of the Companies Act, 2013 which
are duly incorporated in Company’s CSR Policy and forms the
guiding principle for all CSR Programmes/Initiatives/Projects. The
Company has a Corporate Social Responsibility Policy approved
by the Board of Directors.
Pursuant to the Rule 8 of the Companies (Corporate Social
Responsibility) Rules, 2014, a report on CSR activities for the
financial year 2018-19 is annexed herewith as Annexure ‘G’.
32
Annual Report 2018-19
Micro, Small and Medium Enterprises
Government of India, Ministry of Micro, Small and Medium
Enterprises, vide order dated 23rd March, 2012, notified the
public procurement policy in respect of procurement of goods
and services produced and provided by Micro and Small
Enterprises. The policy was amended in November, 2018. As
per the directive, every Central Ministry or Department or Public
Sector Undertaking shall sent an annual goal of procurement
from Micro and Small Enterprises from the Financial year 2012-
13 and onwards with the objective of achieving an overall
procurement of products and services rendered by Micro and
Small Enterprises to the extent of minimum of 25% of total annual
purchases. Necessary provision has been made in all the tenders
stating the eligibility of MSEs to participate in the tender. To
encourage and develop Micro and Small Manufacturers, vendor
development programs were conducted on regular intervals
with the assistance of state MSME Development Institute,
Hyderabad. The Company regularly updates the procurement
details at public procurement policy monitoring portal of MSME
Sambandh. Your Company has complied with the norms as
prescribed for procurement during the year.
Statutory Disclosures
a) There was no change in the nature of business of the
Company during the financial year 2018-19.
b) The Company has not accepted any public deposits during
the financial year 2018-19.
c) No significant and material orders were passed by the
Regulators or Courts or Tribunals impacting the going
concern status and Company’s operations in future.
d) The Company maintains an adequate system of internal
controls including suitable monitoring procedures, which
ensure adequate and timely financial reporting of various
transactions, efficiency of operations and compliance with
statutory laws, regulations and Company policies.
e) There are no material changes and commitments affecting
the financial position of the Company which have occurred
between the end of the financial year i.e. 31st March, 2019
and the date of this report.
Acknowledgments
The Board of Directors places on record their deep sense of
appreciation and gratitude for the support and encouragement
received from the Department of Atomic Energy and its
constituent units such as Bhabha Atomic Research Centre,
 Corporate Overview Statutory Reports Financial Statements

IGCAR, RRCAT, VECC, NFC, AMD, AERB, NPCIL and BHAVINI,
Defence Research and Development Organization, Ministry
of Defence and its constituent units, Indian Space Research
Organization, Election Commission of India, Department
of Information Technology, Department of Science and
Technology, Ministry of Shipping, Ministry of Finance, Ministry
of Civil Aviation, Ministry of Corporate Affairs, Ministry of Home
Affairs, Department of Public Enterprises and other ministries
and departments of Government of India, the Government of
Andhra Pradesh and Telangana. Your Directors express their
sincere thanks to the Statutory Auditors, the Chairman and
members of the Board Sub-Committees and the office of the
Principal Director and Director General of Commercial Audit,
Bankers, Foreign Collaborators, all the customers and agencies,
who are directly or indirectly associated with your Company.
The Board wishes to place on record its sincere appreciation
for the efforts and invaluable contribution made and excellent
co-operation extended by the employees and executives at all
levels which has resulted in the Company achieving historic
performance during the year.

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 27th September, 2019 Chairman & Managing Director

33
 Annual Report 2018-19

ANNEXURE – ‘A’
TO DIRECTORS’ REPORT TO SHAREHOLDERS
Information required to be disclosed in accordance with Section 134(3)(m) of the Companies Act, 2013 read with Rule
8(3) of the Companies (Accounts) Rules, 2014.

A. Conservation of Energy
Current Year Previous Year
(2018-19) (2017-18)
Units Consumed 78,59,380 KWH 80,91,360KWH
Total Amount Rs. 671,55,445/- Rs. 673,88,998/-
Rate/Unit Rs. 8.54/- Rs. 8.32/-

Own Generation iii. The capital investment on energy conservation

• 500 kWp Solar PV Power plant installed on IT&TG
rooftop of ECIL and is in operation.
• 2 Nos of 125KVA & 01 no of 250 KVA DG sets located
in NID Sub-station, Admin & NPR Bldg respectively
were installed to meet the emergencies in case of total
power failure to ECIL.
The energy consumption is maintained as minimum as possible.
equipment:
a) Rs. 40,00,000/- spent on replacement of
conventional type lighting with Energy efficient
LED lighting.
b) Rs. 60,00,000/- spent on replacement of
conventional type Air-conditioning units with
Energy efficient Air conditioning units.

i. The Steps Taken or impact on conservation of energy B. Technology absorption, adaptation and
innovation
a) Replacement of Tube light fixtures and
conventional street light fixtures with LED Lighting i. Efforts, in brief made, towards technology
fixtures in different divisions and service areas. absorption, adaptation and innovation

b) Replacement of Window Air Conditioners with
Star rated Energy efficient split Air conditioners
and conventional type Air conditioning plants with
Energy efficient compact Air conditioning plants in
rooms and labs was continued.
c) Preventive maintenance of Sub-station equipment like
HT & LT Switchgears, Protection system and Solar water
heating system for better performance of the system.
ii. Steps taken by Company for utilizing alternative
sources of energy.
a) 500 kWp Solar PV Power Plant installed on rooftop
of IT&TG Building has generated 7,89,148KWH
Units (from April-2018 upto March-2019).
An MoU was signed with Avrora Scientific and
Production association Joint Stock Company, Russian
Federation to carry out joint projects on development,
manufacturing, delivery, commissioning and after
sales support of Automation facilities for ships and
submarines for Integrated Platform Management
System (IPMS).
ii. Benefits derived as a result of the above efforts
e.g. Product Improvement, Cost Reduction, Import
Substitution etc.
This MoU will enable the Company to get into new
technologies and improve business prospects.

iii. In case of imported technology (imported during last 3 years reckoned from beginning of financial year)
Technology imported during the last 3 years (reckoned from the beginning of the financial year)
Sl. Name & Address of Year of Technology Has Technology If not fully absorbed
Product
No. the collaborator Import Imported been fully absorbed give reasons
Nil

34
 Corporate Overview Statutory Reports Financial Statements

iv. Research & Development from 1uR/h to 100 mR/h. This development
has resulted in import substitution and cost
a. Specific Areas in which R&D is carried out reduction.
i. Flash X-Ray System vi. Monitoring and Control System for EMISAT
ii. NUCON Programmable Logic Controllers Launch is a web-based network management
(PLC) Software, it was used for automation of ground
station and data reception from EMISAT
iii.
Upgraded Dosimeter satellite during the launch of PSLV-C45 for
iv. Remote Dosimeter System Kautilya mission. This development resulted
to enhance the Company’s software product
v. Micro R Survey Meter
profile in Space sector.
vi. Monitoring and Control System for EMISAT
Launch vii. The Class Room Jammer provides an effective
jamming for across all standard cell phone
vii.
Class Room Jammer frequencies by blocking all transmissions
of mobile devices in examination centers.
b. Benefits derived as a result of the above R&D
This development has resulted in import
i. Flash X-ray technology has become the substitution and cost reduction.
primary imaging and engineering diagnostic
c. Future plan of action (for R&D in Products and
tool on nearly every ballistic and explosive
Technologies)
test range worldwide. The FXR System has
significant applications in Nuclear, Defence, i. Enhanced NUCON PLC
Space and other industries. This development
has resulted in business worth Rs. 4 Crores. ii. Different types of Jammers for strategic
A 500 kV FXR system based on a vertically applications
configured Marx and an FXR diode has been iii.
Software Defined Radios
developed with and will be supplied to VSSC,
iv. Advance Integrated Security Systems
ISRO. This development has enabled import
substitution, cost reduction and add to profile v. Artificial Intelligence and Big Data Analytics
of the Company.
vi.
Crypto Products
ii. The NUCON Programmable Logic Controller
d. The expenditure incurred on Research and
(PLC)enriched with safe & secure features is
Development
developed jointly by BARC, IGCAR and ECIL
for indigenous process automation solution
(Rs. in Crore)
for strategic applications. This development
has resulted in import substitution and a timely Particulars 2018-19 2017-18
addition to Indian Nuclear program of the Capital 8.00 4.69
Company. Revenue 39.69 22.46
Total 47.69 27.15
iii. The Upgraded Dosimeter is used to estimate Total R&D expenditure as a 1.79% 2.14%
the effective dose received by the human body percentage of Net Turnover
through exposure to external ionizing radiation.
These are required for DAE facilities and other
industrial applications. This development has C. Foreign Exchange Earnings and outgo:
resulted in import substitution, cost reduction I. During the year, the Company exported (including
and an addition to ECIL’s product profile. third party exports) Rs. 0.41 Crore worth of its products.
iv. The Remote Personal Dosimeter is a low power II. The total exchange used and earned
Pocket dosimeter. It is used for monitoring the
real-time dose rate from the personnel working (Rs. in Crore)
in remote locations. This development has
Particulars 2018-19 2017-18
resulted in import substitution, cost reduction.
Foreign exchange used 809.92 524.65
v. The Micro R Gamma Survey Meter is used for Foreign exchange earned 0.41 1.89
ambient equivalent dose rate measurement.
With CsI crystal coupled with SiPM measures

35

D. Facilities Setup, Successful Trails Conducted
During 2018-19
1. Combined Altitude Temperature Humidity (CATH)
Chamber:
4. NUCON PLC Test Facility:
2. Highly Accelerated Life Test (HALT) & Highly
Accelerated Stress Screen (HASS) Chamber:
3. High Density PCB Facility:
The facility was upgraded with the state-of-the-art
technology to manufacture High Density Multilayer
36
Annual Report 2018-19
PCBs with micro vias. The facility got quality clearance
from LCSO and NPCIL for manufacturing multilayer
PCBs up to 20 layers:
32 Node and 9 Node NUCON PLC system integrated
test facility was setup . The facility has two independents
32 Node & 9 Node Redundant PLC Systems and these
can be reorganized for Stand Alone, Dual Redundant
Hot standby and distributed configurations.
NUCON PLC Test Facility components:
• 32 & 9 Node NUCON PLC based integrates facility
• Field Signal I/O Simulator catering to facility
• SCADA HMI Interface
• Engineering Work Stations for user application
logic development
This Integrated facility can be used as a test bed to for
evaluation, testing and demonstration of PLC based
I&C requirements of upcoming plants in DAE and
other national critical infrastructures. It facilitates use of
indigenous SCADA package, secured communication
devices; secured communication protocol will make
available an indigenous safe and secure automation
solution to end-users.
 Corporate Overview Statutory Reports Financial Statements
E. New Products & Technologies
1. Flash X-Ray (FXR) System:
Flash X-ray (FXR) radiography is a technique used to take
stop-action pictures of dynamic events. Such dynamic events
may include detonation of high explosives and in ballistic
testing. FXR system provides a unique method of imaging
very fast events, which cannot be captured utilizing normal
high speed and ultra-high-speed photographic techniques.
FXR machines are designed to give extremely short duration
(sub-microsecond), and extremely intense bursts of x-ray
radiation. These sources have higher radiation power
than continuously emitting conventional x-ray tubes which
makes them useful for the investigation of non-transparent
high-speed transient phenomena. The FXR system can see
through smoke and fire to reveal how a projectile or weapon
interacts with armour at the exact moment of impact. The
FXR System has significant applications in Nuclear, Defence,
Space and other industries. A 500kV FXR system based on
a vertically configured Marx and an FXR diode has been
developed with know-how from BARC.
2. NUCON Programmable Logic Controllers (PLC):
The NUCON PLCs are Safe and Secure PLC models.
These PLC systems are flexible available in modular form
factor with varied capacity and performance ranges and
can be tailored to suit both open loop and closed loop
control requirements in Industrial Automation.
A graphical User Interface(GUI) based programming
software ECLOGIC10 enables the NUCON 1000 Series
PLC System user to configure, design, develop, compile,
load, debug and document the control application logic
and view PLC diagnostics. The programming software
also provides means to monitor control application
logic variables, force the variables to any given state and
maintain the NUCON 1000 Series PLC System.
HMI Interface to NUCON PLC System
NUCON PLC System provides necessary interfaces
to connect to the third-party HMI packages. Modbus/
TCP, Modbus/Serial and OPC server interfaces are
supported. ECIL offers an indigenously developed
HMI package with a brand name “ECSCADA” on LINUX
platform which makes the connectivity to the NUCON
PLC system a simple affair.
3. Upgraded Dosimeter:
The Pocket Dosimeter is intended to use to estimate
the effective dose received by the human body
through exposure to external ionizing radiation. These
are required in all DAE facilities and other industrial
applications for measurement of dose rate and dose
absorbed by personnel.
It is a light weight, small (pocket size), and low power
pocket dosimeter and developed using state-of-the-
art electronics like Silicon Photo Multiplier (SiPM).
With a CsI Scintillation detector coupled to SiPM, the
sensitivity achieved is approximately 0.6 CPS/µR/h,
which is of the order 100 times more sensitive than PIN
diode. The power consumption is less than 20 mW. The
range of measurement is from 1 uR/h to 100 mR/h.
4. Remote Dosimeter System:
The real time personal dosimeter system is intended to
use for monitoring the real time dose/dose rate from the
personnel working in remote locations. The system consists
of three sub systems viz: Wireless pocket dosimeter, LORA
37

(Long-Range, Low-Power) receiver and PC software to
manage more no of wireless pocket dosimeters.
The LORA receiver receives the data from multiple
numbers of pocket dosimeters and few receivers are to be
placed at vantage pints and are connected to a common
gateway, which in turn communicates to a central server
for monitoring the dose received by person and also/
dose rate to control the movement of the person.
5. Micro R Gamma Survey Meter:
The Portable Gamma Survey Meter is developed
for ambient equivalent dose rate measurement. The
instrument is designed with two detectors, CsI and PIN
diodes to cover the range from 1uR/h to 10 R/h. CsI crystal
coupled with SiPM measures from 1uR/h to 100 mR/h.
6. Class Room Jammer:
The Class room jammer is a compact size jammer with a
power output of 38 Watts, providing an effective jamming
across all standard cell Phone frequencies by blocking
all transmissions (incoming and outgoing) of mobile
phones, electronic devices and associated accessories
in the examination Centres. The output power has been
optimized to avoid any significant side-effect on human
beings during its operation.
Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)
Date: 27th September, 2019 Chairman & Managing Director
38
Annual Report 2018-19
The model is compact in size requiring minimum area
for easy installation and transportation.
7. Monitoring and Control System for EMISAT Launch:
Monitoring and Control System (MCS) is indigenously
designed and developed web-based Network
Management Software for Satellite Communication.
The 7.5m dia Antenna is used for tracking EMISAT
either in LHCP or RHCP in S-Band or in both LHCP and
RHCP in X-Band. Telemetry data can be received in
S-Band and Pay load data can be received in X-Band in
both LHCP and RHCP.
The MCS automates the ground station activities
required for the satellite pass by configuring and
monitoring different RF, IF and Baseband devices
connected in the network, for successful tracking and
data reception in S and X-Band simultaneously. The
MCS has support for communication protocols – TCP,
UDP, SNMP, HTTP, FTP, NTP etc.
The MCS software was successfully used for automation
of Ground Station and Data Reception from EMISAT
Satellite during the launch of PSLV-C45 for Kautilya
Mission on 1st April 2019 at DSST, RCI, Hyderabad.
For and on behalf of the Board of Directors
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE – ‘B’
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on financial year ended on 31st March, 2019

Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration)
Rules, 2014.

I. Registration & other Details:

1. CIN U32100TG1967GOI001149
2. Registration Date 11th April, 1967
3. Name of the Company Electronics Corporation of India Limited
4. Category/Sub-category of the Company Private Company limited by shares/Government Company
5. Address of the Registered office & contact details ECIL Post, Hyderabad – 500062, Telangana, Tel:040-
27121802
6. Whether listed company No
7. Name, Address & contact details of the Registrar & Transfer N.A
Agent, if any.

II. Principal Business Activities of the Company (contributing 10 % or more of the total turnover of the Company)

Sl. Name and Description of main products NIC Code of the % to total turnover of the Company
No. / services Product/service
1. Nuclear Equipment -
2. Defence Equipment - Nuclear, Defence and Security Equipment and
3. Security Equipment - E-Governance Projects consists more than 90% of the
4. Aerospace Equipment - Turnover.
5. E-governance -

III. Particulars of Holding, Subsidiary and Associate Companies

Sl. Name and Address of the CIN/GLN Holding/ Subsidiary/ % of shares Applicable
No. Company Associate held Section
1. ECIL-Rapiscan Limited U99999TG1995PLC019129 Associate 49% 2(6)

39
 Annual Report 2018-19

IV Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity)
A. Category-wise Share Holding

Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year % Change
year [As on 01st April, 2018] [As on 31st March, 2019] during
Demat Physical Total % of Demat Physical Total % of the year
Total Total
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 0 0 0 0 0 0 0 0 Nil
b) Central Govt 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil
c) State Govt(s) 0 0 0 0 0 0 0 0 Nil
d) Bodies Corporate 0 0 0 0 0 0 0 0 Nil
e) Banks / Financial
Institutions 0 0 0 0 0 0 0 0 Nil
f) Any Other 0 0 0 0 0 0 0 0 Nil
Sub-Total: A (1) 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil
(2) Foreign
a) NRI-Individuals 0 0 0 0 0 0 0 0 Nil
b) Other Individuals 0 0 0 0 0 0 0 0 Nil
c) Bodies Corporate 0 0 0 0 0 0 0 0 Nil
d) Banks/Financial
Institutions 0 0 0 0 0 0 0 0 Nil
e) Any Other 0 0 0 0 0 0 0 0 Nil
Sub-Total: A(2) 0 0 0 0 0 0 0 0 Nil
Total Shareholding of Promoter
(A) = A(1) +A(2) - 16,33,712 16,33,712 100 - 16,33,712 16,33,712 100 Nil
B. Public Shareholding
(1) Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 Nil
b) Banks 0 0 0 0 0 0 0 0 Nil
c) Financial Institutions
d) Central Govt 0 0 0 0 0 0 0 0 Nil
e) State Govt(s) 0 0 0 0 0 0 0 0 Nil
f) Venture Capital Funds 0 0 0 0 0 0 0 0 Nil
g) Insurance Companies 0 0 0 0 0 0 0 0 Nil
h) FIIs 0 0 0 0 0 0 0 0 Nil
i) Foreign Venture Capital
Funds 0 0 0 0 0 0 0 0 Nil
j) Others (specify) 0 0 0 0 0 0 0 0 Nil
Sub-total (B)(1):- 0 0 0 0 0 0 0 0 Nil
(2) Non-Institutions
a) Bodies Corp.
i) Indian 0 0 0 0 0 0 0 0 Nil
ii) Overseas 0 0 0 0 0 0 0 0 Nil
b) Individuals
i) Individual
shareholders holding
nominal share capital
upto Rs. 1 Lakh 0 0 0 0 0 0 0 0 Nil
ii) Individual
shareholders holding
nominal share capital
in excess of Rs. 1 Lakh 0 0 0 0 0 0 0 0 Nil

40
 Corporate Overview Statutory Reports Financial Statements

Category of Shareholders No. of Shares held at the beginning of the No. of Shares held at the end of the year % Change
year [As on 01st April, 2018] [As on 31st March, 2019] during
Demat Physical Total % of Demat Physical Total % of the year
Total Total
Shares Shares
c) Others (specify)
Non Resident Indians 0 0 0 0 0 0 0 0 Nil
Overseas Corporate
Bodies 0 0 0 0 0 0 0 0 Nil
Foreign Nationals 0 0 0 0 0 0 0 0 Nil
Clearing Members 0 0 0 0 0 0 0 0 Nil
Trusts 0 0 0 0 0 0 0 0 Nil
Foreign Bodies - D R 0 0 0 0 0 0 0 0 Nil
Sub-total (B)(2):- 0 0 0 0 0 0 0 0 Nil
Total Public Shareholding (B)=(B)
(1)+ (B)(2) 0 0 0 0 0 0 0 0 Nil
C. Shares held by Custodian for
GDRs & ADRs 0 0 0 0 0 0 0 0 Nil
Grand Total (A+B+C) 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil

B) Shareholding of Promoter:

Sl. Shareholder’s Name Shareholding at the beginning of the Shareholding at the end of the year % change
No. year in
No. of % of total %of Shares No. of % of total %of Shares share
Shares Shares Pledged / Shares Shares Pledged / holding
of the encumbered of the encumbered during
Company to total Company to total the
shares shares year

1. President of India 1633709 99.97 NIL 1633709 99.97 Nil Nil

Chairman, AEC & Secretary to
Govt. of India, Department of
2. Atomic Energy 1 0.01 NIL 1 0.01 Nil Nil
Jt. Secretary (I&M), Department of
3. Atomic Energy 1 0.01 Nil 1 0.01 Nil Nil
Chairman & Managing Director,
4. ECIL 1 0.01 Nil 1 0.01 Nil Nil

C) Change in Promoters’ Shareholding (please specify, if there is no change) (There is no change in the promoter’s
shareholding during the year)

Sl. Particulars Shareholding at the beginning of the Cumulative Shareholding during the
No. year year
No. of Shares % of total Shares No. of Shares % of total Shares
of the Company of the Company
1. At the beginning of the year 16,33,712 100 16,33,712 100
Date wise Increase / Decrease in
Promoters Shareholding during the
year specifying the reasons for increase
/ decrease (e.g. allotment /transfer /
2. bonus/ sweat equity etc.): Nil Nil
3. At the end of the year 16,33,712 100 16,33,712 100

41
 Annual Report 2018-19

D) Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs):

Sl. For each of the Top 10 Shareholding at the beginning of the Cumulative Shareholding during the
No. Shareholders year year
No. of Shares % of total Shares No. of Shares % of total Shares
of the Company of the Company
At the beginning of the year Nil Nil Nil Nil
Date wise Increase / Decrease in
Shareholding during the year specifying
the reasons for increase /decrease
(e.g. allotment / transfer / bonus/ sweat
equity etc): Nil Nil Nil Nil
At the end of the year Nil Nil Nil Nil

E) Shareholding of Directors and Key Managerial Personnel:

Sl. For each of the Directors and Key Shareholding at the beginning of the Cumulative Shareholding during the
No. Managerial Personnel year year
No. of Shares % of total Shares of No. of Shares % of total Shares
the Company of the Company
1. Chairman & Managing Director, ECIL
At the beginning of the year 1 0.01 1 0.01
Date wise Increase / Decrease
in Shareholding during the year
specifying the reasons for increase /
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc.): Nil 0.01 Nil Nil
At the end of the year 1 0.01 1 0.01

V) Indebtedness - Indebtedness of the Company including interest outstanding/accrued but not due for payment.
(Rs. In Lakhs)
Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 0 0 0 0
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 0 0 0 0
Total (i+ii+iii) 0 0 0 0
Change in Indebtedness during the financial year
* Addition 4483.96 97000.00 0 101483.96
* Reduction 0 97000.00 0 97000.00
Net Change 4483.96 0 0 4483.96
Indebtedness at the end of the financial year
i) Principal Amount 4483.96 0 0 4483.96
ii) Interest due but not paid 0 0 0 0
iii) Interest accrued but not due 0 0 0 0
Total (i+ii+iii) 4483.96 0 0 4483.96

42
 Corporate Overview Statutory Reports Financial Statements

VI. Remuneration of Directors and Key Managerial Personnel

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(Amount in Rs.)
Sl. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No. Shri Debashis Rear Admiral Sanjay Sh. Kishor Shri V S Shri D V
Das, Chaubey (Retd.) Rungta, B Babu, Shastry,
Chairman & Director (Tech) (upto Director (F) Director (P) Director (P)
Managing 30th june, 2018) (Upto 01st (Upto 04th (w.e.f. 12th
Director Chairman & February, April, 2019) December,
(upto 1st July, Managing Director 2019) 2018)
2018)* (from 01st July,
2018)
1. Gross salary
(a) Salary as per provisions
contained in section 17(1)
of the Income-tax Act, 1961 37,01,091 37,93,247 7,41,050 10,75,307 93,10,695
(b) Value of perquisites u/s
17(2) Income-tax Act, 1961
(c) Profits in lieu of salary
under section 17(3)
Income- tax Act, 1961
2. Stock Option
3. Sweat Equity
Commission
- as % of profit
4. - others, specify…
Others, please specify
(EL encashment, PF, Gratuity,
5. PRP, etc.) 3,29,148 44,50,486 11,67,184 2,34,558 61,81,376
Total (A) 40,30,239 82,43,733 19,08,234 13,09,865 1,54,92,071
Ceiling as per the Act N.A#
* Shri Debashis Das, DS, Chairman & Managing Director is acting on additional charge and he has drawn remuneration from his parent organisation.
# ECIL being Government Company the provisions of Section 197 of Companies Act, 2013 are not applicable.

B. Remuneration to other directors

(Amount in Rs.)
1 Independent Directors
Sl. Particulars of Remuneration Name of Directors Total Amount
No. Shri Gulshan Rai Wadhwa Sri M R Ranjit Karthikeyan
(w.e.f. 01st August, 2018) (w.e.f. 22nd October, 2018)
1 Independent Directors
Fee for attending board and committee meetings 60,000 40,000 1,00,000
Commission Nil Nil Nil
Others, please specify Nil Nil Nil
Total (B1) 60,000 40,000 1,00,000

2 Other Non-Executive Directors

Sl. Particulars of Remuneration Name of Directors Total
No. Shri M A Inbarasu Shri M Bharath Vice Admiral Atul Amount
(upto 25th March, Kumar (upto 31st Kumar Jain, AVSM,
2019) December, 2018) VSM
Fee for attending board and committee meetings Nil Nil Nil Nil
Commission Nil Nil Nil Nil
Others, please specify Nil Nil Nil Nil
Total (B2) Nil Nil Nil Nil
Total (B)=(B1+B2) Nil Nil Nil 1,00,000
Total Managerial Remuneration 1,55,92,071
Overall Ceiling as per the Act NA NA

43
 Annual Report 2018-19

C. Remuneration to Key Managerial Personnel Other Than MD/Manager/WTD

(Amount in Rs.)
Sl. Particulars of Remuneration Key Managerial Personnel Total
No. CEO Company CFO
Secretary
MSRS Prasad
1. Gross salary Nil Nil
(a) Salary as per provisions contained in section 17(1) of the
Income-tax Act, 1961 Nil 13,74,150 Nil 13,74,150
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 Nil - Nil Nil
(c) Profits in lieu of salary under section 17(3) Income-tax Act,
1961 Nil - Nil Nil
2. Stock Option Nil - Nil Nil
3. Sweat Equity Nil - Nil Nil
4. Commission Nil - Nil Nil
- as % of profit Nil - Nil Nil
others, specify (PF) Nil 1,22,909 Nil 1,22,909
5. Others, please specify Nil Nil Nil Nil
Total Nil 14,97,059 Nil 14,97,059

VII. Penalties / Punishment/ Compounding of Offences:

Type Section Brief Details of Authority Appeal
of the Description Penalty / [RD / NCLT/ made,
Companies Punishment/ COURT] if any (give
Act Compounding Details)
fees imposed
A. Company
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
B. Directors
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
C. Other Officers in Default
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil

44
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE – ‘C’
TO DIRECTORS’ REPORT TO SHAREHOLDERS
Corporate Governance
The Company’s business philosophy recognizes the need of
upholding the highest standard of Corporate Governance in
all its operations. The management of the Company believes
that strong and sound corporate governance practices would
enable it to face the challenges of sustainable growth effectively
and successfully. The Company continued its best efforts in
enhancing the openness and transparency in all its operations.
Board of Directors
In terms of Sec 2(45) of the Companies Act, 2013, ECIL is
a Government Company. The entire paid up capital of the
Company is held by the President of India, including 3 shares
held by his nominees.
The Board, as at 31st March, 2019 comprises Six Directors -
Two Whole-time Functional Directors and Four Part time Non-
Executive Directors. The Board meets at regular intervals and
is responsible for the proper direction and management of the
Company.
During the financial year, 5 (Five) Board Meetings were held
on 23rd May, 2018, 4th August, 2018, 24th September, 2018,
27th December, 2018 and 8th March, 2019. The composition
of the Directors, their attendance at the Board Meetings during
the financial year and at the last Annual General Meeting is as
follows:

Sl. Directors Board Meetings Attendance No. of other

No. Held during Attended At last AGM Director-ships
the tenure held on 24th
September,
2018
Whole-Time Functional Directors
1. Shri Debashis Das, Chairman & Managing 1 1 NA Nil
Director (upto 1st July, 2018)
2. Rear Admiral Sanjay Chaubey (Retd.) 5 5 Yes 1
Director (Technical) (upto 30th June, 2018)
& Chairman & Managing Director
(from 1st July, 2018)
3. Shri Kishor Rungta 4 4 Yes 1
Director (Finance) (Upto1st February, 2019)
4. Shri D V Shastry, Director(Personnel) 2 2 NA Nil
(From 12th December, 2018)
Part time Non-Executive Directors
5. Shri M A Inbarasu, Government Nominee 5 5 Yes 4
(Upto 25th March, 2019)
6. Shri M Bharath Kumar, Executive Director (E&I), 4 4 Yes Nil
NPCIL (Upto 31st December, 2018)
7. Lt Gen Ashish Ranjan Prasad, AVSM, VSM, ADC 1 0 NA Nil
(Up to 30th May, 2018)
8. Shri Gulshan Rai Wadhwa, Independent Director 3 3 Yes Nil
(From 01st August, 2019)
9. Shri M R Ranjit Karthikeyan, Independent Director 2 2 NA 2
(From 22nd October, 2018)
10. Vice Admiral Atul Kumar Jain, AVSM, VSM 1 1 NA Nil
(From 27th February, 2019)
11. Shri Dilbag Singh Choudhary, Director 1 1 NA 1
(From 12th February, 2019)

45
 Annual Report 2018-19

The remuneration of the Whole-time Functional Directors is
fixed by the Government of India. Part-time Official Directors
on the Board are officials from the Government / other CPSEs
and, therefore, are not paid any remuneration and sitting fees
for the meetings attended. Part-time Non-official Directors
(Independent Directors) are paid sitting fee of Rs. 10000/- per
each meeting of Board or Committee of the Board attended.
The memberships or chairmanships of the committees of the
Directors across all the companies in which he is a Director
is within the limit of ten committees for memberships and
five committees for chairmanship as specified under the DPE
guidelines on Corporate Governance.
Board Procedures
The Agenda along with notes is circulated well in advance to
the Board members. The items in the Agenda are backed by
comprehensive background information to enable the Board to
take appropriate decisions. The Board has been kept informed
of major events/items and approvals taken wherever necessary.
Chairman & Managing Director/Director (F), at the Board
Meetings, keep the Board apprised of the overall performance
of the Company.
Code of Conduct
The Board of Directors of your Company has laid down a Code
of Conduct for all Board Members and Senior Management of
the Company. The Code of Conduct has been posted on the
Company’s website www.ecil.co.in. All the Board members and
the Senior Management personnel have affirmed compliance
with the Code of Conduct during the year 2018-19.
The following are the Sub Committees of the Board:
2. Shri M R Ranjit Karthikeyan, Independent Director – Member
3. Shri Dilbag Singh Choudhary, Director - Member
One meeting was held on 7th March, 2019. All the members of
the Committee attended the meeting.
The terms of reference of the Audit Committee are in line with
Section177 of the Companies Act, 2013 and DPE Guidelines.
Corporate Social Responsibility Committee
The Board has constituted Corporate Social Responsibility
Committee and the committee met Two times during the
financial year on 4th August, 2018 and 27th December, 2018.
The composition of the committee and the attendance of the
members of the committee of its meeting are given below:
Sl. Name No. of meetings
No. attended
1. Shri M. Bharath Kumar, Chairman 2
2. Shri Kishor Rungta, Director 2
(Finance), Member
3. Shri Deepak Vijayendra Shastry, 1
Director (Personnel), Member
(w.e.f. 12th December, 2018)
The committee is re-constituted with Shri M R Ranjit Karthikeyan,
Independent Director as Chairman, Shri Gulshan Rai Wadhwa,
Independent Director and Shri D S Choudhary, Director as
members of the Committee in June, 2019.
The specific areas identified by the Company through its
approved CSR policy to take up the projects/programmes are
in line with Schedule VII of the Companies Act, 2013 and the
DPE guidelines.

1. Audit Committee
Remuneration Committee
2. Corporate Social Responsibility Committee
3. Remuneration Committee The Board has constituted Remuneration Committee and the
4. Contract Negotiation Committee terms of reference of the committee are in line with the DPE
guidelines. All the committee members are part-time Directors
and the Committee is headed by Independent Director. During
Audit Committee the year one meeting was held on 24th September, 2018. All
the members have attended the meeting.
Audit Committee consists of part-time directors as its members.
All the members of the committee are experienced professionals Details of remuneration paid to the Chairman & Managing
and have rich knowledge of financial matters of the Company Director and other Directors are given below:
including accounts and corporate law. The Statutory Auditors
have been the special invitees for all the meetings. The Head of Sl. Name of Director All elements of
the Internal Audit Department is also invited for participation in No. remuneration
discussions. of Directors
(In Rs. Lakhs)
During the year the Audit Committee was reconstituted on
1. Rear Admiral Sanjay Chaubey 40.30
appointment of Independent Directors on the Board of the
(Retd.), Director Technical (27th
Company by the Government of India with the following
April, 2018 to 30th June, 2018) &
Directors as its members.
Chairman & Managing Director (01st
1. Shri Gulshan Rai Wadhwa, Independent Director – Chairman July, 2018 to 31st March, 2019)

46
 Corporate Overview Statutory Reports Financial Statements

of Directors of the Company consists of C&MD, Functional

Sl. Name of Director All elements of
Directors and part-time Directors from DAE, BARC, Ministry of
No. remuneration
Defence and other Government organizations/Departments
of Directors
or other CPSEs. The Directors are having requisite knowledge
(In Rs. Lakhs)
relating to functioning of the Company. The management of
2. Shri Kishor Rungta, Director 82.44 the Company familiarizes the new Director about the Company,
(Finance) (01st April, 2018 to 01st its operations, various policies and processes of the Company,
February, 2019) various divisions and their role and responsibilities, the
3. Shri V S B Babu, Director (Personnel) 19.08 governance and internal control processes and other relevant
(01st April, 2018 to 04th April, 2019) important information concerning the Company.
4. Shri Deepak Vijayendra Shastry, 13.10
Director (Personnel) (12th Directors are also regularly encouraged and sponsored for
December, 2018 to 31st March, attending important training programmes relating to Board
2019) related practices and orientation programmes, etc., conducted
by various institutes of repute and DPE. Independent Directors
have attended DPE orientation programme at Dibrugarh during
Contract Negotiation Committee the year.
This committee is headed by Chairman & Managing Director
and provided with the authority to negotiate and approve the Disclosures:
contracts and purchases for the Company both proprietary
and non-proprietary, which are above the delegated powers to 1. During the year, there is no transaction of material nature
Chairman & Managing Director and committee of Functional with the Directors or their relatives or the Management that
Directors but upto a limit of Rs. 150 Crore. Presently, the had potential conflict with the interest of the Company.
composition of the committee is:
2. A statement of related party transactions during the year
1. Rear Admiral Sanjay Chaubey (Retd.), C&MD Chairman is given in Notes forming part of Annual Accounts of the
2. Shri Gulshan Rai Wadhwa Member Company for the year 2018-19. Details of these transactions
were also placed before the Board meetings.
3. Shri D S Choudhary Member
3. There were no instances on non-compliance on any matter
The committee meets regularly based on the requirements of
related to any guidelines issued by the Government during
the business.
the last three years and no penalties / strictures were
imposed on the Company by any Statutory Authority on
Separate Meeting of Independent Directors any matter.

During the year Independent Directors met on 8th March, 2019.
All the Independent Directors have present at the meeting.
Corporate Management Committee
The Corporate Management Committee is a high level policy
making body at the Corporate level which is headed by the
Chairman & Managing Director. The Committee consists of all
Functional Directors, Executive Directors, General Managers
and Heads of Divisions as members. The Committee meets
regularly and deliberates upon the major policy issues including
performance of the Company. The President and General
Secretary of ECIL workers Union and President and Secretary of
ECIL Officers Association are the special invitees.
4. ECIL has framed Risk Management Policy in accordance
with the Guidelines on Corporate Governance and risk
management is a part of its management system based on
safety conscious approach.
5. The Company being PSU, Central Vigilance Commission
Guidelines are applicable, which provide adequate
safeguard against victimization of employees. No person
has been denied access to the Audit Committee.
6. No items of expenditure, other than those directly related
to its business or incidental thereto, those spent towards
the welfare of its employees / ex-employees, towards
fulfilling its Corporate Social Responsibility, were debited
in books of accounts.

7. Expenses incurred for the Board of Directors and Top

Familiarisation & Training Programmes of Management are in the nature of salaries, allowances,
Directors perquisites, benefits and sitting fees as permissible under
the rules of the Company. No other expenses, which are
At the time of induction of a new Director, a welcome letter
personal in nature, were incurred for the Board of Directors
is addressed by Chairman & Managing Director to him along
and Top Management.
with details of business profile of the Company. The Board

47
 Annual Report 2018-19

8. Administrative and office expenses for the financial year No special resolution was passed in any of the last three Annual
2018-19 is 3.14% of the total expenses as compared to General meeting.
3.53% of previous year.

Presidential Directives and Guidelines
The Company has been following the Presidential Directives
and guidelines issued by the Govt. of India from time to time
regarding reservation for SCs, STs and OBCs in letter and spirit.
Officials dealing with the subject were provided necessary
training to enable them to update their knowledge on the
subject and perform their job effectively.
In line with DPE guidelines and Presidential Directives, the
pay revision was implemented with effect from 01.01.2017
for executives of your Company. Wage negotiations were
successfully completed for workmen of your Company as per
DPE guidelines and negotiated wages were implemented with
effect from 01.01.2017.
Means of Communications
1. The Company displays on its website at www.ecil.co.in the
information on the Company, its performance and other
relevant information including those required under the
Right to Information Act.
Postal Ballot
At the ensuing Annual General Meeting, there is no resolution
which is proposed to be passed by Postal Ballot.
Annual General Meeting
52nd Annual General Meeting for the financial year 2018-19
will be held on 27th September, 2019 at Registered Office of
the Company at Hyderabad.
Whistle Blower policy
With a view to establish a mechanism for the employees to
report to the Management about their concerns regarding
unethical behavior and the cases of actual or suspected fraud,
violation of Company’s general guidelines on Conduct and
Ethics, the Company implemented the Whistle Blower Policy.
The Policy ensures that adequate safeguards are provided to
the genuine Whistle Blower against victimization. In terms
of the policy any aggrieved employee can directly approach
Chairman of Audit Committee.

2. Matters of interest to employees are circulated internally in Compliance

the form of notices, office orders and instructions.
The Company has complied with the Guidelines on Corporate
Governance for CPSEs issued by the Department of Public
General Shareholder Information
Enterprises, Government of India. The Company is also
ECIL is not listed at any Stock Exchange in India or abroad. The submitting quarterly compliance report regularly to the
entire share capital of the Company is held by the President of Department of Atomic Energy, Government of India. The
India and his nominees. certificate received from the Company Secretary in Practice
on compliance with the DPE Guidelines is enclosed with this
report.
General Body Meetings
The DPE guidelines on Corporate Governance for CPSEs
The details of the last three Annual General Meeting of the provide that the CPSEs would be graded on the basis of their
Company are given below: compliance with the guidelines. DPE has graded ECIL as “Very
Good” for the year 2018-19.
Year Date Time Venue
2015-16 17th September, 09.30 hours Registered
2016 Office,
2016-17 28th September, 14.30 hours ECIL Post office,
2017 Hyderabad-
2017-18 24th September, 13:00 hours 500062
2018

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 27th September, 2019 Chairman & Managing Director

48
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE – ‘D’
Certificate on compliance of conditions on
Corporate Governance

To
The Members of
Electronics Corporation of India Limited
PO.ECIL
HYDERABAD-500 062

We have examined the compliance of the conditions of Corporate Governance by Electronics Corporation of India Limited (ECIL), for
the year ended on 31st March, 2019, as stipulated in the Guidelines on Corporate Governance for Central Public Sector Enterprises
– 2010 issued by Department of Public Enterprises (DPE Guidelines), which were forwarded by the Department of Atomic Energy
(DAE), the Administrative Ministry of ECIL., for compliance with the instructions contained therein.

The Compliance for the conditions of Corporate Governance is the responsibility of the Management. Our examination was
limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance with the
conditions of the Corporate Governance as stipulated in the DPE guidelines. It is neither an audit nor an expression of opinion on
the Financial Statements of the Company.

In our opinion and to the best of our information, according to the explanations given to us and the representations made by the
Management, we certify that the Company has adopted a Code of Business Conduct and Ethics for Board Members and Senior
Management as per the DPE Guidelines, as per which it is the responsibility of Directors and Senior Management Personnel to
familiarize themselves with the Code, comply with its Standards and affirmed the compliance with the Code of Conduct for the
Financial Year ended 31st March, 2019.

We further certify that the Company has complied with the conditions of the Corporate Governance as stipulated in the above
mentioned DPE Guidelines except with the condition regarding the composition of Independent Directors on the Board of
Directors. It is informed that the appointment of Directors is done by Government of India and the said appointment of required
number of Independent Directors is also pending with the appropriate authority namely Government of India.

We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

N V S S Suryanarayana Rao
Place: Hyderabad Company Secretary in Practice
Date: 29th August, 2019 ACS No.5868 C.P. No. 2886

49
 Annual Report 2018-19

ANNEXURE – ‘G’
Annual Report on CSR Activities for the Year 2018-19
Sl. Item description Information
No.
1. A brief outline of the Company’s CSR ECIL is committed towards holistic welfare of the Society by undertaking
policy, including overview of projects or CSR activities within the ambit of Schedule-VII of the Companies Act 2013,
programs proposed to be undertaken Companies (CSR Policy) Rules 2014 and the Guidelines on CSR issued
and a reference to the web-link to the CSR by DPE, Government of India. Out of the thrust areas mentioned in the
policy and projects or programs. Schedule-VII of the Companies Act 2013, priority will be given to under
privileged, neglected and weaker sections of Society.
The Company shall give preference to the local areas for spending at least
75% of the amount earmarked for CSR activities. The remaining amount will
be utilized beyond local areas. At least 75% of the new proposals shall be
taken up in Project mode. The provisions of the Companies Act, 2013 and
CSR Rules made thereafter (including DPE guidelines, as and when issued,
on CSR) shall have overriding effect vis-à-vis the provisions of this Policy.
Board level CSR committee will oversee the activities of CSR which is headed
by an Independent Director.
Company’s CSR Policy has been uploaded on the Website of the Company
under the following Website: www.ecil.co.in/CSR_Policy.pdf.
2. The Composition of the CSR Committee. Shri M R Ranjit Karthikeyan … Independent Director and Chairman, CSR
Committee
Shri Gulshan Rai Wadhwa … Independent Director and Member,
CSR Committee
Shri D S Choudhary … Director and Member, CSR Committee
3. Average net profit of the Company for last Rs. 8,290.88 Lakhs
three financial years
4. Prescribed CSR Expenditure (two per cent Rs. 165.82 Lakhs ( Which is 2% of the average stand-alone Profit Before Tax
of the amount as in item 3 above) as per the Companies Act, 2013 excluding dividend received from other
companies)
5. Details of CSR spent during the financial
year:
a) Total amount to be spent for the financial Rs. 173.00 Lakhs (Rs. 165.82 Lakhs for FY 2018-19 and Rs. 7.18 Lakhs carried
year forward from previous year)
b) Amount unspent, if any Rs. 37.38 Lakhs#
c) Manner in which the amount spent during During the FY 2018-19 Rs. 135.62 Lakhs has been spent towards CSR
the financial year detailed below activities as detailed below.

50
 Details of CSR Activities in Financial Year 2018-19

(1) (2) (3) (4) (5) (6) (7) (8)

Sl. CSR Project or activity Sector in Projects programs Amount Amount spent on the Cumulative Amount
No. identified which the (1) Local area or Other outlay projects or programs expenditure spent : Direct
project is (2) Specify the State and (budget) Sub-Heads: upto the or through
covered District where projects or Project or 1) Direct expenditure on reporting implemen-
Corporate Overview

programs was undertaken program projects or programs. period, (Rs.) tation agency
wise (Rs.) 2) Overhead (Rs.)
1. Construction of toilets in ZPHS, Sanitation Local area– Medchal 4,00,000 3,80,156 3,80,156 Direct
Boys & Girls (co-education) Malkajigiri Dist, Telangana (by ECIL)
School at Edulabad, Medchal State
Malkajgiri Dist.
2. Construction of Compound Education Local area– Medchal 80,000 80,713 80,713 -do-
Wall in ZPHS, Girls at Yapral, Malkajigiri Dist, Telangana
Statutory Reports

Medchal Malkajgiri Dist. State

3. Construction of toilets in Boys Sanitation Local area – Renigunta, 6,00,000 5,72,060 5,72,060 -do-
Hostel School at Renigunta, Tirupathi Dist, Andhra
Tirupathi Pradesh State
4. Construction of toilets and -do- Local area –Tirupathi Dist, 5,00,000 4,66,838 4,66,838 -do-
compound wall in MPPS School Andhra Pradesh State
at Panchalinagar, Renigunta,
Tirupathi
5. Construction of Toilets, -do- Local area – Medchal 8,00,000 8,11,880 8,11,880 -do-
Financial Statements

Sump & Kitchen of MPPS, Malkajgiri Dist, Telangana

Subhashnagar, Mallapur State
6. Construction of toilets in ZPHS -do- Local area– Medchal Malkajgiri 3,00,000 2,78,286 2,78,286 -do-
Girls School at Edulabad, Dist, Telangana State
Medchal
7. Construction of Sump at ZPHS, Education Local area– Medchal Malkajgiri 1,00,000 1,06,153 1,06,153 -do-
Moulali Dist, Telangana State
Sub Total C/F 27,80,000 26,96,086 26,96,086

51
52
Details of CSR Activities in Financial Year 2018-19

(1) (2) (3) (4) (5) (6) (7) (8)

Sl. CSR Project or activity Sector in Projects programs Amount Amount spent on the Cumulative Amount
No. identified which the (1) Local area or Other outlay projects or programs expenditure spent : Direct
project is (2) Specify the State and (budget) Sub-Heads: upto the or through
covered District where projects or Project or 1) Direct expenditure on reporting implemen-
programs was undertaken program projects or programs. period, (Rs.) tation agency
wise (Rs.) 2) Overhead (Rs.)
Sub Total B/F 27,80,000 26,96,086 26,96,086
8. Construction of Class Rooms at Education Local area– Medchal Malkajgiri 11,00,000 11,30,211 11,30,211 Direct
MPPS, Cheryala. Dist, Telangana State (by ECIL)
9. Providing Dual Desks for the -do- Local area– Medchal Malkajgiri 10,00,000 9,41,700 9,41,700 -do-
students in Govt. Schools at Dist, Telangana State
Medchal District
10. Supply of School Bags, Water -do- Local area– Medchal Malkajgiri 14,00,000 13,39,000 13,39,000 -do-
Bottles to the students in Govt. Dist, Telangana State
Schools
11. Health Camp at ZPHS, Kapra Healthcare Local area– Medchal Malkajgiri 1,00,000 89,750 89,750 -do-
Dist, Telangana State
12. Construction of Rain Water Environment Local area– Medchal Malkajgiri 7,00,000 6,89,377 6,89,377 -do-
Harvesting Pits Dist, Telangana State
13. Construction of Toilets at ZPHS, Sanitation Local area– Medchal Malkajgiri 10,00,000 9,27,821 9,27,821 -do-
Kowkoor Dist, Telangana State
14. Contribution to Clean Ganga Environmental Others: Uttar Pradesh 10,00,000 10,00,000 10,00,000 -do-
Fund sustainability
15. Contribution to Swachh Bharath Healthcare National cause – Ministry of 10,00,000 10,00,000 10,00,000 -do-
Kosh and Sanitation Finance, Govt. of India
16. Contribution to Indian Naval Contribution/ National cause – Ministry of 1,00,000 1,00,000 1,00,000 -do-
Development association Army Welfare Defence, Govt. of India
17. Construction of Sump at Education Local area– Medchal Malkajgiri 2,00,000 1,93,982 1,93,982 -do-
MPUPS, Gandhinagar. Dist, Telangana State
18. Computer Education to the Skill Local area– Medchal Malkajgiri 20,00,000 21,74,384 21,74,384 -do-
students in Govt. Schools Development Dist, Telangana State
19. Contribution to Armed Forces Contribution/ National cause – Ministry of 10,00,000 10,00,000 10,00,000 -do-
Flag Day Fund Army Welfare Defence, Govt. of India
20. Construction of Toilets at ZPHS, Sanitation Local area– Medchal Malkajgiri 35,000 32,628 32,628 -do-
Boys, Alwal Dist, Telangana State
21. Administrative Expenditure on CSR Comm- Administrative & other 2,60,000 2,46,789 2,46,789 -do-
CSR unication Overheads on CSR
Total 1,36,75,000 1,35,61,728 1,35,61,728
Annual Report 2018-19
 Corporate Overview Statutory Reports Financial Statements

Sl. Item description Information

No.
6. In case the Company has failed to spend the
two per cent of the average net profit of the
last three financial years or any part thereof,
the Company shall provide the reasons for
not spending the amount in its Board report.
7. A responsibility statement of the CSR
Committee that the implementation and
monitoring of CSR policy, is in compliance
with CSR objectives and Policy of the
Company.
The Company has spent nearly 78.39% of allocated amount during the
year. The remaining amount could not be spent due to longer gestation
of projects involving activities like construction of toilets and other civil
works, etc., and the completion of the works will stretch for more than one
year.
The implementation and monitoring of CSR activities are in compliance
with CSR objectives and Policy of the Company.

# DPE Guidelines allows carry forward of unspent amount to the next year for utilisation for the purpose for which it was allocated.

M. R. Ranjit Karthikeyan Rear Admiral Sanjay Chaubey (Retd.)

Chairman, CSR Committee Chairman & Managing Director

53

ANNEXURE – ‘H’
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Developments
India continued to be the fastest growing major economy in
the world in 2018- 19, despite slight moderation in its GDP
growth from 7.2% in 2017-18 to 6.8% in 2018-19. To achieve
the objective of becoming a USD 5 trillion economy by
2024-25, India needs to sustain a real GDP growth rate of 8%.
India’s gross domestic product (GDP) is expected to reach
USD 6 trillion by 2026-27 on the backdrop of digitization,
globalization, favorable demographics, and reforms. The
electronics hardware manufacturing has been given a high
priority by the Government of India and is considered an
important pillar under Make in India and Digital India programs
for its success.
Electronics Industry is the world’s largest and fastest growing
Industry and is increasing finding its applications in all sectors
of economy The National Electronics Policy 2019 envisions
positioning India as a global hub for Electronics Systems Design
and manufacturing by creating an enabling environment for
the Industry to compete globally with special thrust areas
including Strategic Electronics. The policy targets to promote
domestic manufacturing and export in the entire value chain
of ESDM for economic development to achieve turnover of
USD 400 billion. It will thus enable flow of investment and
technology leading to higher value addition in the domestically
manufactured electronic products, increased electronic
hardware manufacturing in the country and their export while
generating substantial employment opportunities.
SWOT Analysis
Strengths
• Large capacity for state-of-the-art Electronic Manufacturing
and Testing Facility
• Innovating for the customers with a vibrant in-house R&D
• Diverse talent pool
• Long and rich experience in high technology solutions and
products
• Tie-ups with leading R&D and Academic institutions
• Strong Product Life Cycle Management
• Ability and experience to handle large and complex projects
• Established Customer Service Network
Weaknesses
• Poor realization of Sundry debts
• Lack of proactive marketing and business development
54
Annual Report 2018-19
• Over dependence on selective markets
• Inability to participate in large Tenders
• Procurement Procedural constraints
• Long product development cycle
Opportunities
• Major Space Programs
• Strategic Defence programs
• Nuclear Power plant upgrades and upcoming Nuclear
reactors
• Electronic Fuze requirements from Indian Artillery
• Radiation Detection Systems at various vital locations
• Increasing Security Sector Market
• Various e-Governance programs
• Make in India and Digital India program
Threats
• High rate of Technology Change
• Operational Policy Changes
• Talent poaching by the competitors
• Non-level playing field in Defence sector
• Competitive Pricing
Outlook for 2019-20
The Company is confident of meeting its target of Rs. 1900
Crore for the financial year 2019-20 with the healthy orders
book position. The major opportunities being Electronic
Voting Machines and VVPATs, Electronic Fuzes, C4I systems
for missiles, Strategic communication networks, Control and
Instrumentation systems and Security systems. The Company
has augmented its manufacturing capacity and is future ready
for large scale manufacturing.
The Ministry of Defence with its modernization program
provides huge opportunity and the Company with its proven
products is well placed to meet the emerging requirement.
The C&I requirement for the upcoming Nuclear Reactors and
ongoing up-gradations gives a positive outlook to the Nuclear
Sector. The Company is actively pursuing newer domains
to expand its customer base and concurrently realigning its
business strategy as per the customer requirements.
 Corporate Overview Statutory Reports Financial Statements
Segment-wise Performance
Nuclear
Control and Instrumentation Systems, Radiation Detectors and
Instruments, SCADA systems, Operator Training Simulators of
Nuclear Power Plants and Facilities are the major constituents of
the Nuclear business of the Company. During the year 2018-19,
this vertical posted a turnover of Rs. 346.19 Crores contributing
to 13% of net turnover.
The major contribution came from Nuclear Instrumentation
Package for upcoming Nuclear Power Plants, life cycle support
for C&I Systems and Passive Catalytic Recombiner Devices
(PCRD) for operating Nuclear Power Plants.
With the opportunities of Control and Instrumentation systems
for the upcoming two more 700MW PHWRs and four more
1000MW LWRs this sector is poised for impressive growth.
Defence
During the year 2018-19, the sector contributed 20% of the
Company’s net turnover, amounting to Rs. 532.60 Crores with
major contribution coming from Electronic Fuzes for Indian
artillery, military radios, Strategic Communication networks and
other Strategic projects of National importance.
The continued demand of Electronic Fuzes for Indian Artillery
and legacy military radios promises a consistent business in the
near future. The enhanced infrastructure and the established
competence have positioned the Company favorably to handle
large projects with ease.
Aerospace
Supply of various types of Antennas and Rate Gyroscopes for
Indian Space Program and Solid State Cockpit Voice Recorders
are the major products of your Company catering to Aerospace
segment. In the year gone-by, the Company has successfully
installed various types of antennas for National Space Programs
initiated by ISRO. In the year 2018-19, the sector contributed
1% of the Company’s net turnover, amounting to Rs. 26.63
Crores this year.
The outlook of this segment predicts an increasing order book
position as supply of Antenna Platform Units for Aircrafts, Rate
Gyroscopes and Antennae for various Space Programs are in
the offing and would contribute to improve the performance
in this sector.
Security
The Company has continued to deliver the legacy security
solutions which include Access Control Systems, integrated
security & surveillance solutions and various types of Jammers.
Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)
Date: 27th September, 2019 Chairman & Managing Director
The technology tie-ups have enabled the Company to provide
variety of Jamming solutions to various State prisons and
Police Departments. The business in this sector contributed
Rs. 133.15 Crores constituting about 5% of the Company’s net
turnover. The outlook of this segment is positive with numerous
opportunities emerging in providing Security Solutions to vital
and Strategic installations.
IT & e-Governance
Electronic Voting Machines, Voter Verifiable Paper Audit
Trail equipment, and EVM Power Packs were the major
products of your Company in e-Governance segment. The IT
training provided to various State Departments and Societal
Applications are also contributed to this sector.
The e-Governance segment contributed Rs. 1624.43 Crores
contributing 61% of the Company’s turnover in 2018-19 with
sale of EVMs having the major share. The Company completed
the mammoth requirement of EVMs and VVPATs for the General
Elections 2019. The Company has upgraded its infrastructure
and manpower deployment to achieve its production capacity
to timely execute the ECI requirements.
Risks & Concerns
The government and its agencies are the exclusive customers
for Nuclear, Defence, Aerospace, Security and e-Governance
segments. The projects are subjected to unexpected delays due to
long procurement cycle and customer clearances. While executing
large and complex projects where multiple agencies are involved
there is an inherent risk due to increasing interdependencies
and uncertainties which eventually leads to delay in release of
payments from the customers. The large overheads become a
limiting factor to get a favorable position in a competitive bidding.
Internal Control Systems and their Adequacy
Your Company has a robust system of internal controls in
place which are commensurate with the size and nature of the
business. The internal controls are in line with the statutory
requirements and are designed to safeguard the assets against
loss from unauthorized use or disposal and ensure recording
and reporting of all transactions. The control framework
includes documented policies and procedures, internal audits
and management review. The internal controls are designed to
ensure that all records, financial or otherwise, are reliable for
preparing financial information and accountability of assets.
Apart from the monitoring mechanisms instituted internally, an
audit firm has also been appointed to conduct internal audit of
the Company’s operations as per the audit plan approved by
the Audit Committee. The areas covered by the annual audit
plan include material procurement, inventory management,
operations review and contract management.
For and on behalf of the Board of Directors
55
 Annual Report 2018-19

ANNEXURE - ‘I’
Form No. AOC-1
Statement containing salient features of the financial statement of Subsidiaries/associate companies/joint ventures
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)

Part "A": Subsidiaries

(Amount in Rs. Crores)
Sl. No. Item description
1 Reporting period for the subsidiary
2 Reporting currency of foreign subsidiary.
3 Share capital
4 Reserves & surplus
5 Total assets
6 Total Liabilities
7 Investments NIL
8 Turnover
9 Profit before taxation
10 Provision for taxation
11 Profit after taxation
12 Proposed Dividend
13 % of Shareholding

Note: The details with respect to names of subsidiaries which are yet to commence operations and liquidated or sold during the
year are Nil.

Part “B”: Associates and Joint Ventures

Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
(Amount in Rs. Crores)
Name of Associates/Joint Ventures ECIL-Rapiscan Limited
1. Latest audited Balance Sheet Date 31st March, 2019
2. Shares of Associate/Joint Ventures held by the Company on the year end
No. 14,70,000
Amount of Investment in Associates/Joint Venture 0.7350
Extend of Holding % 49%
3. Description of how there is significant influence Investment to the extent of 49%
in the equity share capital of the
Company
4. Reason why the associate/joint venture is not consolidated Not Applicable
5. Networth attributable to Shareholding as per latest audited Balance Sheet 40.91
6. Profit / Loss for the year 8.33
i. Considered in Consolidation 4.08
ii. Not Considered in Consolidation 4.24

1. Names of associates or joint ventures which are yet to commence operations.

2. Names of associates or joint ventures which have been liquidated or sold during the year.

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 27.09.2019 Chairman & Managing Director

56
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE - ‘J’
Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto

Sl. No. Particulars Details

1. Details of contracts or arrangements or transactions not at arm’s length basis
(a) Name(s) of related party and nature of relationship Not Applicable
(b) Nature of Contracts/arrangements/transactions Not Applicable
(c) Duration of the contracts/arrangements/transactions Not Applicable
(d) Salient terms of the contracts or arrangements or transactions including the value, if any Not Applicable
(e) Justification for entering into such contracts or arrangements or transactions Not Applicable
(f) Date(s) of approval by Board Not Applicable
(g) Amount paid as advances, if any: Not Applicable
(h) Date on which the special resolution was passed in General Meeting as required under first proviso Not Applicable
to section 188
2. Details of material contracts or arrangements or transactions at arm’s length basis
(a) Name(s) of the related party and nature of relationship Not Applicable
(b) Nature of contracts/arrangements/transactions Not Applicable
(c) Duration of the contracts/arrangements/transactions Not Applicable
(d) Salient terms of the contracts or arrangements or transactions including the value, if any Not Applicable
(e) Date(s) of approval by the Board, if any Not Applicable
(f) Amount paid as advance, if any None

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 27 .09.2019 Chairman & Managing Director

57
 Annual Report 2018-19

Electronics Corporation of India Limited

Standalone Balance Sheet as at March 31, 2019
(Rs. in Lakhs)

Particulars Note No Figures as at the end Figures as at the end

of Current Reporting of Previous Reporting
Period March 31, 2019 Period March 31, 2018

ASSETS
1. Non-current assets
(a) Property, Plant and Equipment 2 16,973.94 15,479.93
(b) Capital work-in-progress 3 2,140.94 1,956.35
(c) Investment Property 4 107.05 109.94
(d) Other intangible assets 5 166.24 27.70
(e) Intangible Assets Under Development 6 - -
(f) Financial Assets
(i) Investments 7 367.43 365.22
(ii) Trade Receivables 8 8,371.45 4,048.82
(iii) Loans 9 - -
(iv) Other Financial Assets 10 6,527.28 13,517.37
(g) Deferred tax Assets (net) 11 6,160.71 6,823.71
(h) Other non-current Assets 12 3,057.74 6,836.89
Total Non Current Assets 43,872.78 49,165.93
2. Current Assets
(a) Inventories 13 1,00,909.60 58,117.40
(b) Financial Assets
(i) Investments - -
(ii) Trade Receivables 14 1,53,052.64 1,65,277.76
(iii) Cash & Cash Equivalents 15 773.55 2,579.00
(iv) Bank Balances other than (iii) above 16 40.07 6,020.30
(v) Loans 17 51.77 536.33
(vi) Other Financial Assets 18 8,604.69 45,537.62
(c) Current Tax Assets - 3,888.70
(d) Other Current Assets 19 7,788.67 16,540.80
Total Current Assets 2,71,220.99 2,98,497.91
Total Assets 3,15,093.77 3,47,663.84
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 20 16,337.12 16,337.12
(b) Other Equity 21 86,235.64 68,599.59
Total Equity 1,02,572.76 84,936.71
LIABILITIES
1. Non-current liabilities
(a) Financial Liabilities
(i) Borrowings - -
(ii) Trade Payables 22
(A) Total Outstanding dues of Micro and Small enterprises - -
(B) Total Outstanding dues of Creditors other than Micro Enterprises and Small Enterprises 7,064.45 3,199.83
(iii) Other Financial Liabilities 23 5,388.00 13,367.86
(b) Provisions 24 12,590.98 10,913.81
(c) Other non-current liabilities 25 20,653.56 13,803.66
Total Non-Current Liabilities 45,696.99 41,285.16
2. Current liabilities
(a) Financial Liabilities
(i) Borrowings 26 4,483.96 -
(ii) Trade payables 27
(A) Total Outstanding dues of Micro and Small enterprises 7,011.32 4,053.68
(B) Total Outstanding dues of Creditors other than Micro Enterprises and Small Enterprises 69,955.47 89,531.94
(iii) Other Financial Liabilities 28 11,918.43 11,985.42
(b) Provisions 29 9,450.91 10,508.04
(c) Current Tax Liabilities 1,816.47 -
(d) Other current liabilities 30 62,187.46 1,05,362.89
Total Current Liabilities 1,66,824.02 2,21,441.97
Total Equity and Liabilities 3,15,093.77 3,47,663.84
Significant Accounting Policies and other Notes forming part of the Financial Statements

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

58
 Corporate Overview Statutory Reports Financial Statements

Electronics Corporation of India Limited

Standalone Statement of Profit and Loss for the year ended March 31, 2019
(Rs. in Lakhs)
Particulars Note Figures for Figures for
No the Current the Previous
Reporting period Reporting period
March 31, 2019 March 31, 2018
INCOME
i) Revenue From Operations 31 2,71,662.02 1,40,816.22
ii) Other Income 32 2,471.06 4,126.44
Total Income 2,74,133.08 1,44,942.66
EXPENSES
i) Cost of material consumed 33 1,59,571.27 86,475.26
ii) Changes in inventories of finished goods and work in progress 34 (2,655.15) (20,087.68)
iii) Excise Duty - 596.86
iv) Employees' Benefit Expenses 35 38,407.71 36,475.21
v) Finance Cost 36 2,273.57 2,024.04
vi) Depreciation & Amortization Expenses 37 3,776.42 2,713.28
vii) Other Expenses 38 36,055.54 28,345.09
Total Expenses 2,37,429.36 1,36,542.06
Profit before exceptional items and tax 36,703.72 8,400.60
Exceptional Items - -
Profit Before Tax 36,703.72 8,400.60
Tax Expenses
Current Tax 11,903.38 1,349.67
- Minimum Alternate Tax Credit Entitlement - -
- Tax relating to Earlier Years (112.64) 10.42
- Deferred Tax 662.23 1,768.58
Profit for the period from continuing operations 24,250.75 5,271.93
Profit/(loss) from discontinued operations - -
Tax expense of discontinued operations - -
Profit/(loss) from discontinued operations after tax - -
I Profit for the Period 24,250.75 5,271.93
II Other Comprehensive Income 39
Items that will not be reclassified to profit or loss:
Changes in fair value of Equity Instruments 2.21 58.71
Income Tax relating to these items (0.77) (20.51)
Remeasurement of Define Benefit Plans (753.82) (2,339.41)
Income Tax relating to these items 263.38 809.67
Other Comprehensive Income (489.00) (1,491.54)
Total Comprehensive Income for the period 23,761.75 3,780.39
Earnings per equity share :
No.of Equity shares of par value of Rs. 1000 each 1633712 1633712
(1) Basic (in Rs.) 1,484.40 322.70
(2) Diluted (in Rs.) 1,484.40 322.70
Significant Accounting Policies and other Notes forming part of the Financial
Statements
As per our report of even date attached
For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

59
 Annual Report 2018-19

Electronics Corporation of India Limited

Standalone Cash Flow Statement for the year ended March 31, 2019
(Rs. in Lakhs)
Particulars Figures as at the Figures as at the
Note end of Current end of Previous
No. Reporting Period Reporting Period
March 31, 2019 March 31, 2018
A. CASH FLOW FROM OPERATING ACTIVITIES
NET PROFIT/(LOSS) BEFORE TAX 36,703.72 8,400.60
Adjustments for :
Depreciation 3,776.42 2,713.28
Interest expense 2,273.57 2,024.04
Dividends received (18.38) (18.38)
Interest received on Short Term Deposit Receipts (14.68) (895.55)
Expenditure on Corporate Social Responsibility Activities 135.62 139.02
Write off of Fixed Assets 17.85 1.70
Operating profit before Working Capital changes 42,874.12 12,364.71
Increase/Decrease Inventories (42,792.20) (29,955.64)
Increase/Decrease Trade Receivables 7,902.49 (31,956.97)
Increase/Decrease Loans and advances 484.56 (134.35)
Increase/Decrease Other Current Assets 6,614.66 (11,044.43)
Increase/Decrease Current Tax Liabilities (9,710.89) -
Increase/Decrease Current liabilities (36,471.34) 23,718.68
Increase/Decrease Provisions 1,246.10 7,267.25
Increase/Decrease Trade Payables (12,754.21) 14,623.86
Increase/Decrease Other Financial Laibilities (8,046.85) 14,797.34
Increase/Decrease Other Financial Assets 43,923.02 19,919.03
Increase/Decrease Bank Balances 5,978.85 19,750.57
Increase/Decrease Current Tax Assets 3,888.70 (4,101.31)
Cash generated from operations 3,137.00 35,248.74
Expenditure on Corporate Social Responsibility Activities (135.62) (139.02)
Grants received 5,415.35 6,803.62
Grants utilisation (5,269.54) (4,251.58)
Cash flow before extraordinary items 3,147.19 37,661.76
Extraordinary items
Net cash from operating activities 3,147.19 37,661.76
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets (5,423.93) (5,874.96)
Fixed assets in transit and capital work in progress (184.59) 99.12
Interest received 16.06 1,866.25
Dividend received 18.38 18.38
Net cash from investing activities (5,574.10) (3,891.21)

60
 Corporate Overview Statutory Reports Financial Statements

Electronics Corporation of India Limited

Standalone Cash Flow Statement for the year ended March 31, 2019
(Rs. in Lakhs)
Particulars Figures as at the Figures as at the
Note end of Current end of Previous
No. Reporting Period Reporting Period
March 31, 2019 March 31, 2018
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from term loan from Banks 4,483.96 (28,334.60)
Interest expense (2,273.57) (2,024.04)
Dividend paid (1,317.98) (1,129.37)
Dividend tax paid (270.98) (229.91)
Net cash used in financing activities 621.43 (31,717.92)
Net increase in cash and cash equivalents (1,805.45) 2,052.63
Cash and cash equivalents (Opening Balance) 2,579.00 526.37
Cash and cash equivalents (Closing Balance) 773.55 2,579.00
Change in Liability arising from financing activities:
Particulars 1st April,2018 Cash Foreign 31st March,2019
Flow Exchange
Movement
Borrowings - 4,483.96 - 4,483.96
D. Notes forming part of the Financial Statements.

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

61
 Annual Report 2018-19

Electronics Corporation of India Limited

Standalone Statement of Changes in Equity for the year ended March 31, 2019
A. EQUITY SHARE CAPITAL
(Rs. in Lakhs)
Balance at the Beginning of the Reporting Period as at April 01, 2017 Changes in Equity Balance at the End of
Share capital during the Reporting Period as
the year at March 31, 2018
16337.12 - 16,337.12
Balance at the Beginning of the Reporting Period as at April 01, 2018 Changes in Equity Balance at the End of
Share capital during the Reporting Period as
the year at March 31, 2019
16337.12 - 16,337.12

B. OTHER EQUITY
(Rs. in Lakhs)
Particulars Reserves and Surplus Other items
of other
General Retained Total
comprehensive
Reserve Earnings Income
Balance at the Beginning of the Reporting Period as at April 2,056.46 66,473.80 222.90 68,753.16
01, 2017
Changes in accounting policy/ prior period errors - (2,445.41) (129.27) (2,574.68)
Restated balance at the beginning of the Accounting Period 2,056.46 64,028.39 93.63 66,178.48
as at April 01, 2017
Profit for the year - 3,742.19 - 3,742.19
Other comprehensive Income for the year - - 38.20 38.20
Dividend paid - (1,359.28) - (1,359.28)
Transfer to Retained Earnings - - - -
Balance at the end of the Reporting Period as at March 2,056.46 66,411.30 131.83 68,599.59
31, 2018

(Rs. in Lakhs)
Particulars Reserves and Surplus Other items
of other
General Retained Total
comprehensive
Reserve Earnings Income
Balance at the Beginning of the Accounting Period as at April 2,056.46 66,411.30 131.83 68,599.59
01, 2018
Changes in accounting policy/ prior period errors - (4,536.74) - (4,536.74)
Restated balance at the beginning of the Accounting Period 2,056.46 61,874.56 131.83 64,062.85
as at April 01, 2018
Profit for the year - 23,760.31 - 23,760.31
Other comprehensive income for the year - - 1.44 1.44
Dividend & Dividend Tax paid - (1,588.96) - (1,588.96)
Transfer to retained earnings - - - -
Balance at the end of the Accounting Period as at March 2,056.46 84,045.91 133.27 86,235.64
31, 2019

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

62
 Corporate Overview Statutory Reports Financial Statements
Notes to Standalone Financial Statements 2018-19
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
1. CORPORATE INFORMATION:
Electronics Corporation of India Limited (ECIL) (the
Company) is a public Company domiciled in India,
incorporated under the provisions of the Companies Act
applicable in India. The registered office of the Company is
located at Hyderabad, Telangana, India.
The Company is a public sector enterprise under the
administrative control of the Department of Atomic Energy,
Government of India. ECIL manufactures and supplies
electronic equipments and systems to Nuclear, Defence,
Aerospace, Telecom, IT and E-Governance etc., and renders
related services.
2. BASIS OF ACCOUNTING:
The financial statements have been prepared in accordance
with Indian Accounting Standards (here in after referred as
IND AS) as notified under section 133 of the Companies
Act, 2013 read with Rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 and the Companies
(Indian Accounting Standards) Amendment Rules, 2016.
3. USE OF ESTIMATES:
The preparation of financial statements in conformity
with IND AS requires management to make estimates,
judgments and assumptions (including revisions if any).
These estimates, judgments and assumptions affect the
application of accounting policies and reported amounts of
assets and liabilities, the disclosure of contingent assets and
liabilities at the date of financial statements and the reported
amounts of revenue and expenses during the period.
Appropriate changes in the estimates are made as
management becomes aware of changes in circumstances.
Changes in the estimates are reflected in the financial
statements in the period in which changes are made.
4. BASIS OF MEASUREMENT:
The financial statements have been prepared on a historical
cost basis except for certain assets and liabilities which
have been measured at fair value as per IND AS.
The financial statements are presented in Indian Rupees
(INR) being the functional currency of the Company,
rounded off to the nearest Lakh with two decimals, except
otherwise stated.
5. RECOGNITION OF REVENUE:
6. INVENTORY:
(i) Revenue from sale of goods and services is recognized
net of variable consideration and exclusive of Goods
and Service Tax (GST).
(ii) In respect of contracts with customers, Revenue is
recognized as follows:
(A) For every contract entered into by the Company
with the customer, at the inception of the contract,
if the Company promises to the customer to satisfy
the performance obligations over a period of time,
the Company recognizes revenue over a period
of time to the extent of units delivered /value of
the goods and services, as per the terms of the
contract, for which the control has been transferred
to the customer.
(B) At the inception of the contract, if the performance
obligations are not going to be performed over a
period of time, but at a point of time, then
a) Revenue is recognized on dispatch if there is
reasonable expectation of the goods reaching
the destination within the accounting period,
in the case of FOR destination cases.
b) Revenue is recognized when the goods are
handed over to the carrier for transmission to
the customer when the control of goods have
already been passed on to the customer, in the
case of Ex-works contracts.
(C) In case of Contracts where contract price is pending
for finalization, revenue is recognized at the provisional
price as per the terms of the contract.
(D) Revenue is recognized on transfer of goods to the
Bonded warehouse (for Defence) after receipt of the
bonding certificate in line with the business practice.
(E) In respect of composite contracts, involving supply and
services where price breakup is available, Revenue in
respect of supplies are recognized either at a point of
time or over a period of time as the case may be subject
to the control of goods passed on to the customer, and
the service income is recognized based on completion
of services.
(F) In respect of continuous service contracts, Revenue is
accrued and recognized over the contract period.
(G) Interest income is recognized using the effective
interest rate method.
(H) Income from dividend is recognized when the right to
receive the payment is established.
i. Raw materials, stores and spares and components
are valued at cost (excludingGST) by using weighted
63

Notes to Standalone Financial Statements 2018-19
average cost formula or Net Realisable Value (NRV)
whichever is lower. Inventories which are non-moving
for more than 3 years and which may not be required
for further use are suitably provided and in the case of
inventories which are less than 3 years old, provision is
made as assessed technically.
ii. Work in Progress of products / projects is valued at
Factory Cost or NRV whichever is lower and such
valuation is based on technical estimate as to the stage
of progress.
iii. Finished goods are valued at “factory cost” or “NRV”
whichever is lower.
iv. Scrap is valued at “NRV”.
v. “Factory cost” comprises Direct material, Direct labour,
Direct expenses and factory overheads
vi. “NRV” is the contracted selling price in the ordinary
course of business less the estimated cost of completion
and estimated costs necessary to make the sale.
7. PROPERTY, PLANT & EQUIPMENT:
A. a) Property, plant & equipment are stated at cost
net of eligible Input credits of Taxes and Duties
wherever applicable and subsequently at cost less
depreciation and impairment losses if any.
b) Equipment manufactured for internal use is
capitalized at Factory cost. Factory cost comprises
Direct Material, Direct labour, Direct expenses and
factory overheads.
c) Assets are depreciated on straight line method
and depreciation is charged on monthly pro rata
basis for the additions / deletions during the year.
The useful life of the assets adopted are as per
Schedule II to the Companies Act, 2013, except in
the following cases based on technical advice:
(i) Where the cost of the asset is Rs. 10,000/- or
below, depreciation is at 100% of the cost
retaining Re.1/- in the net block.
(ii) Computer Systems acquired by Computer
Education Division (CED) and systems sent on
hire or for demonstration or for use outside
factory is depreciated @50%.
(iii) Assets acquired by Electronic Manufacturing
Services Division (EMSD) under the account
heads of (i) Plant and Machinery and (ii)
Electronic Testing and Measuring Equipment
64
Annual Report 2018-19
are depreciated at a rate of 50%. Other account
heads grouped under the head of Plant and
Machinery (referred in note on Property,
Plant and Equipment) are continued to be
depreciated as per the useful life specified
under Schedule II of Companies Act.
(iv)
Structures, erections, Warehouses, Electrical
Installations and other similar enabling works
at projects / sites are depreciated considering
the tenure of the contracts.
(v) Assets acquired out of Grants are amortized
over a period of 3years.
B. IMPAIRMENT OF ASSETS:
As at the end of each Balance Sheet date, the carrying
amount of assets is assessed as to whether there is any
indication of impairment. If the estimated recoverable
amount is found less than its carrying amount, the
impairment loss is recognized and assets are written
down to their recoverable amount.
C. INTANGIBLE ASSETS:
a) The cost of software (which is not an integral part
of the related hardware) acquired for internal use,
together with outsourced cost of development /
implementation, resulting in significant future
economic benefits is recognized as an intangible
asset in the books of accounts when the same is
ready for use and will be amortized on straight line
method over a period to be specified as per the
technical evaluations from the year the asset is put
to use.
Intangible assets that are not yet ready for
their intended use as at the Balance sheet
date are classified as “Intangible Assets under
Development”
b) Technical Know-how charges incurred for new
product lines or up-gradations which generate
future economic benefits, such expenditure is
amortised, based on technical assessment over the
life cycle of the Project not exceeding 5 years.
8. PREPAID EXPENSES:
Prepaid expenses of items of Rs. 1,00,000 and below are
charged to natural heads of accounts.
9. FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currencies are accounted at functional
currency, at the exchange rate prevailing on the date of
 Corporate Overview Statutory Reports Financial Statements
Notes to Standalone Financial Statements 2018-19
transactions. Gains / losses arising out of the fluctuations in
the exchange rate between functional currency and foreign
currency are recognized in the Statement of Profit and Loss
in the period in which they arise.
The fluctuations between foreign currency and functional
currency relating to monetary items at the year ending are
accounted as gains / losses in the Statement of Profit and
Loss.
10. GOVERNMENT GRANTS:
Government grants are recognized where there is a
reasonable assurance that the grant will be received and all
the attached conditions will be complied with.
Grants relating to income are reduced from the related
expense.
Grants relating to asset is disclosed in Balance Sheet as
deferred income. The deferred income is recognized
in profit or loss on a systematic basis over 3 years as per
technical advice.
11. RESEARCH & DEVELOPMENT EXPENDITURE:
Research and development expenditure of revenue nature
is charged off to revenue when incurred. Assets acquired
for research purposes are capitalised.
12. EMPLOYEE BENEFITS:
The Company provides for Gratuity, a Defined Benefit
retirement plan covering eligible employees. The gratuity
plan provides a lump-sum payment to vested employees
at retirement, death or termination of employment of an
amount based on the respective employee’s salary and the
tenure of employment with the Company. Liabilities with
regard to Gratuity plan are determined by the actuarial
valuation at each balance sheet date. Actuarial gain/loss is
recognized in the statement of profit and loss.
Retirement benefit in the form of provident fund is a Defined
Contribution scheme. Contribution made to provident fund
trust is accounted on accrual basis.
Leave encashment liabilities are made on the basis of
actuarial valuations as at the end of the year and actuarial
gain/loss are recognized in the statement of Profit and Loss.
13. BORROWING COSTS:
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets are capitalised
till the month in which the asset is ready to use as part of the
cost of that asset. Other borrowing costs are recognised as
an expense in the period in which these are incurred.
14. INCOME TAXES:
Income tax expense represents the sum of current tax
payable and deferred tax.
Current Tax: The tax currently payable is based on the
current year taxable profit for the year. The current tax is
calculated using the tax rates that have been enacted or
substantively enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the Balance
Sheet method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is
probable that the taxable profits will be available against
which those deductible temporary differences can be
utilised. Deferred tax is calculated using the tax rates that
have been enacted or substantively enacted at the end of
the reporting period.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be
utilised.
15. INVESTMENTS:
Investments other than investments in Joint Venture are
valued at Fair Value through Other Comprehensive Income
(FVOCI) under Net Book value method. Investments in
Joint Venture are valued at Cost.
16. LEASES:
Assets given on operating lease are capitalized and related
lease income is recognized as income, over the lease
period, on a straight line basis.
Operating lease payments are recognised as expense on a
straight line basis over the lease term.
In respect of lease and sub-lease arrangement, the lease
rental received and payable are recognized as income and
expenditure respectively in the Statement of Profit and Loss
on accrual basis.
17. LIQUIDATED DAMAGES:
Claims for liquidated damages against the Company are
considered as and when contractually due except those
which are considered by Management as negotiable and
not payable. However, the same are treated as Contingent
Liability.
65

Notes to Standalone Financial Statements 2018-19
Revenue and Trade Receivables are accounted net off
Liquidated Damages considered as accrued on executed
contracts.
18.
PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS:
Provisions are recognized in the books when there is a
present obligation as a result of past events involving
substantial degree of estimation and it is probable that there
will be an outflow of economic resources. Show cause notices
issued by Government Authorities where the probability of
outflow of economic resources is remote are not considered
as obligations. When the demands are raised against show-
cause notices and are disputed by the Company, these are
treated as disputed obligations along with other contingent
liabilities. Such contingent liabilities are not recognized but
are disclosed in the notes. Contingent Assets are neither
recognized nor disclosed in the financial statements.
19. EARNINGS PER SHARE:
The Company presents basic and diluted earnings per
share data for its ordinary shares. Basic earnings per share
is calculated by dividing the profit or loss attributable to
ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during
the year, adjusted for own shares held. Diluted earnings
per share is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding, adjusted
for own shares held, for the effects of all dilutive potential
ordinary shares.
20. FINANCIAL INSTRUMENTS:
A. Non-Derivative Financial Instruments:
Non-derivative financial instruments are recognized
initially at fair value when the Company becomes a
party to the contractual provisions of the instrument.
Non-derivative financial instruments consists of
a) Financial Assets which includes trade receivables,
Contract Assets and eligible current and non-
current assets are subsequently measured at
amortised cost.
66
Annual Report 2018-19
b) Financial Liabilities include short term and long
term borrowings, bank overdrafts, trade payables
and eligible current and non-current liabilities
which are subsequently measured at amortised
cost.
B. Cash and cash equivalents:
Cash and cash equivalents include all cash balances
and short-term highly liquid investments with an
original maturity of three months or less that are readily
convertible into known amounts of cash which are
subject to insignificant risk of change in value.
Bank overdraft, if any is shown within borrowings in
current liabilities in the Balance Sheet.
C. Trade receivables:
Receivables are recognized initially at fair value, which
is the transaction value. The Company recognizes
impairment loss on Trade Receivables using expected
credit loss model which involves use of simplified
approach on the basis of historical credit loss experience
and is recognized through Statement of Profit and Loss.
Additional provision is made on review if there is an
indication that those may be impaired, consequent loss
is recognized through Statement of Profit and Loss.
D. Trade and other payables:
Liabilities are recognized for amounts to be paid in
future for goods or services received, whether billed
by the supplier or not.
21. EVENTS AFTER THE REPORTING PERIOD:
Adjusting events are events that provide further evidence
of condition that existed at the end of the reporting period.
The financial statements are adjusted for such events
before authorization for issue.
22. WARRANTY PROVISIONS:
Provision for warranty is recognized on revenue from
contracts with customers on sale of products based on
historical experience.
 Notes to Standalone Financial Statements 2018-19
NOTE 2 : PROPERTY, PLANT & EQUIPMENT
The changes in the Carrying value of the Property, Plant and Equipment for the year ended March 31, 2019 are as follows:
(Rs. in Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2019 Accumulated Depreciation as at 31.03.2019 Net Block
Corporate Overview

No As at Additions & Deductions & Total As at Upto Charged to Deductions Total As at As at

01.04.2018 Adj.During the Adj.During the 31.03.2019 31.03.2018 Statement & Adj. 31.03.2019 31.03.2019
Year Year of Profit & During the
Loss Year
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 4,025.60 637.44 0.01 4,663.03 559.30 248.17 - 807.47 3,855.56
3 Plant & Equipment 10,569.01 2,734.30 197.81 13,105.50 3,660.10 2,317.42 197.78 5,779.74 7,325.76
4 Furniture & Fixtures 4,504.43 861.75 2.03 5,364.15 1,388.41 617.64 0.84 2,005.21 3,358.94
5 Vehicles 87.82 15.45 - 103.27 39.53 14.19 - 53.72 49.55
6 Office Equipment 911.77 295.23 1.04 1,205.96 541.48 202.15 1.08 742.55 463.40
Statutory Reports

7 Others: - -
a) Research & Development- 1,502.01 722.73 23.89 2,200.85 839.83 356.60 6.21 1,190.22 1,010.64
Plant & Machinery
b) Computer Systems hired 169.95 - - 169.95 169.95 - - 169.95 -
out to Customers
c) Assets held at Customer 24.96 - - 24.96 24.96 - - 24.96 -
site (BOOT/BOMT)
d) Water Supply 17.90 2.64 0.80 19.74 2.70 1.23 0.80 3.13 16.61
e) Sewarage System 29.57 2.48 1.34 30.70 6.65 1.73 1.34 7.04 23.67
Total 22,712.83 5,272.02 226.92 27,757.93 7,232.91 3,759.13 208.05 10,783.99 16,973.94

The changes in the Carrying value of the Property, Plant and Equipment for the year ended March 31, 2018 are as follows:
Financial Statements

(Rs. in Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block
No As at Additions & Deductions & Total As at Upto Charged to Deductions Total As at As at
01.04.2017 Adj.During the Adj.During the 31.03.2018 31.03.2017 Statement & Adj. 31.03.2018 31.03.2018
Year Year of Profit & During the
Loss Year
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 3,116.34 906.76 (2.50) 4,025.60 332.09 224.71 (2.50) 559.30 3,466.30
3 Plant & Equipment 7,733.43 2,839.12 3.54 10,569.01 2,203.18 1,458.88 1.96 3,660.10 6,908.91
4 Furniture & Fixtures 3,026.98 1,478.07 0.62 4,504.43 797.69 591.20 0.48 1,388.41 3,116.02
5 Vehicles 85.20 2.62 - 87.82 25.65 13.88 - 39.53 48.29
6 Office Equipment 578.71 335.76 2.70 911.77 408.50 135.49 2.51 541.48 370.29
7 Others:
a) Research & Development- 1,259.50 249.52 7.01 1,502.01 577.80 276.83 14.80 839.83 662.18
Plant & Machinery
b) Computer Systems hired 169.95 - - 169.95 169.95 - - 169.95 -
out to Customers
c) Assets held at Customer 24.97 - 0.01 24.96 24.97 - 0.01 24.96 -
site (BOOT/BOMT)
d) Water Supply 16.70 1.20 - 17.90 1.61 1.09 - 2.70 15.20
e) Sewarage System 10.04 19.54 0.01 29.57 5.26 1.39 - 6.65 22.92

67
Total 16,891.63 5,832.59 11.39 22,712.83 4,546.70 2,703.47 17.26 7,232.91 15,479.93

Notes to Standalone Financial Statements 2018-19
NOTE : 2 A
1. a) The Department of Atomic Energy (DAE) has made
Deed of Grant in favour of the Company granting Acres
278-05 Guntas of land free of cost in Keesara and Uppal
Mandals, Rangareddy District. The land was granted for
the purpose for which ECIL was incorporated, provided
that no part of the Land shall be sold or brought to sale.
Out of the grant of Acres 278-05 Guntas, the Company
was conveyed Acres 229-01 Guntas and the same
were mutated in favour of the Company in the revenue
records.
b) Out of grant of Acres 278-05 Guntas DAE has identified
Acres 31-10 Guntas of lands in S. Nos. 223/7, 288,
711 and 24. However the land is yet to be transferred
and mutated in the revenue records in favour of the
Company. The Company is in possession of this land.
c ) Out of grant of Acres 278-05 Guntas balance Acres 17-
34 Guntas of land is neither identified nor mutated in
favour of the Company.
d) The Company is in excess possession of Acres 20-
30 Guntas of land under Survey No. 223/09, 223/10,
223/13 in Kapra Village, Keesara Mandal, Rangareddy
District. This land was transferred by State Government
to DAE. However, the land is not yet conveyed in favour
of the Company.
2. The Company has purchased Acres 2-11 Guntas of land
at Moula-Ali, Hyderabad from Andhra Pradesh Industrial
Infrastructure Corporation Ltd (APIIC). APIIC agreed for
exchange of this land with a land admeasuring Acres
2-65 Guntas in Moula-Ali. In the process the Company will
have title for an additional land of Acres 0-533 Guntas for
which the Company has paid additional consideration of
Rs. 1,65,103/-. Conveyance in respect of exchange properties
in favour of the Company from APIIC is not yet completed.
3. The Company acquired 60 residential quarters at DAE
Colony, D-Sector, each quarter admeasuring about 570 Sft.
in the year 1991-92 at cost of Rs. 81,80,000 from the DAE.
These quarters are not conveyed to the Company, however,
the Company is in possession of these quarters.
4. The DAE vide letter No.5/10(5)/2000-PSU/Vol.III/61, dated
10.01.2002 conveyed the approval of the President of India
for transfer of ownership of land admeasuring 2773.50 Sq.
yards and Buildings for its office situated at Prabhadevi,
68
Annual Report 2018-19
Mumbai free of cost to the Company. The mutation of the
property is not yet completed
5. The Company was allotted following flats in Local Shopping
Complex at Naraina Block, New Delhi for its office premises
by the Delhi Development Authority (DDA) in the year
1996. DDA has issued Allotment Letters and Possession
Slips for these flats in favour of the Company. The Company
is in possession of these properties. However, Sale Deeds
or other documents are not executed in respect of these
properties in favour of the Company.
a) Flat bearing No. B-7, B-Block, 2nd Floor, admeasuring
327-55 Sq. meters for a consideration of
Rs. 1,03,48,937/-.
b) Flat bearing No. D-15, D block, 3rd Floor, admeasuring
270-80 Sq. meters for a consideration of Rs. 93,31,300/-.
6. The Company has entered into Articles of Agreement on
10.12.1976 with Deepak Builders Pvt. Ltd., for purchase
of 2 shops bearing Nos. 37 and 38 at Vishal Co-operative
Housing Society Ltd., M.V. Road, Andheri (East), Mumbai
admeasuring 567 Sq.ft. for a consideration of Rs. 1,41,000/-.
The Sale Deed in respect of this property is not yet executed
in favour of the Company.
7. The Company entered into Agreements of Sale with three
partnership firms viz., M/s Haria Enterprises, M/s Package
Foods and M/s Jayesh Trading Company on 11.11.1974,
for the purchase of Shop Nos.1 to 3, Parasmani, M.G.Road,
Naupada, Thane, Mumbai admeasuring 1225 Sq. ft. for a
consideration of Rs. 2,09,950/-. The registered agreements
of sale are executed in favour of the Company. The Sale
deed is not yet executed in the favour of the Company.
8. The Company entered into a Registered Agreement of Sale
with Maganlal Popatlal Charity & Sarvodaya Hospital Trust
for purchase of 10 residential flats at Chembur, Mumbai
bearing No.B-3, 4, 7, 8, 11, 12, 16 & C-5 to C-7 in a total
area of 5,585 Sq. ft. in Survey No.S-470 to 479 in the year
1982-83 for the purpose of guest house and residence of
employees, for a consideration of Rs. 25,13,250/-. The Sale
Deed is not yet executed in favour of the Company.
Note : 2 B
1. The Property, Plant and Equipment additions made
during the year include assets acquired out of Grants by
DAE, Government of India amounting to Rs. 644.78 Lakhs
 Corporate Overview Statutory Reports Financial Statements

Notes to Standalone Financial Statements 2018-19

(previous year Rs. 218.85 Lakhs)and assets funded by BARC
amounting to Rs. 2111.75 Lakhs (Previous year Rs. 2716.65
Lakhs) aggregating to Rs. 2756.53 Lakhs (previous year
Rs. 2935.50 Lakhs ).
4. Based on the review of the tangible assets deployed in the
2. Obsolete assets having a net value of Rs. 17.85 Lakhs (previous
year Rs. 1.71 Lakhs) are reduced from Carrying Gross Block.
Aggregate Gross Value of all these assets as at March 31,
2019 is Rs. 223.64 Lakhs (previous Year Rs. 4.88 Lakhs).
3. Out of the total tool cost of Rs. 340.65 Lakhs, procured for
execution of order received from Election Commission of
India during the year 2013-14 for manufacture of EVMs,
an amount of Rs. 279 Lakhs was amortized upto the year
2017-18 leaving a balance of Rs. 61.65 Lakhs, which was
amortized during the year 2018-19 (previous year –Nil).
Company, the Technical Committee felt that though some
part of the asset is significant to total cost of the asset, the
useful life of such parts are not different from the useful
life of the remaining part(s), as all assets are in the nature
of electronic equipment where the useful life of intrinsic
parts of the equipment are almost uniform. Accordingly,
uniform useful lives have been adopted for fixed assets for
computation of depreciation.

NOTE 3 : CAPITAL WORK-IN-PROGRESS

The changes in the Capital Work-in-Progress for the year ended March 31, 2019 are as follows:
(Rs. in Lakhs)
S. Particulars Carrying Value as at 31.03.2019
No As at Additions Adjustments/ Value as at
01.04.2018 during the Deductions 31.03.2019
year during the year
1 Capital Equipment-in-transit 739.49 352.06 749.04 342.51
2 Capital Work-in-progress 1,216.86 1,643.21 1,061.64 1,798.43
Total 1,956.35 1,995.27 1,810.68 2,140.94

The changes in the Capital Work-in-Progress for the year ended March 31, 2018 are as follows:
(Rs. in Lakhs)
S. Particulars Carrying Value as at 31.03.2018
No As at Additions Adjustments/ Value as at
01.04.2017 during the Deductions 31.03.2018
year during the year
1 Capital Equipment-in-transit 177.90 951.57 389.98 739.49
2 Capital Work-in-progress 1,877.57 1,010.37 1,671.08 1,216.86
Total 2,055.47 1,961.94 2,061.06 1,956.35

NOTE 4 : INVESTMENT PROPERTY

The changes in the Carrying value of the Investment Property for the year ended March 31, 2019 are as follows:
(Rs. in Lakhs)

S. Particulars Carrying Value as at 31.03.2019 Depreciation as at 31.03.2019 Net Block

No as at
31.03.2019
As at Additions Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2018 & Adj. & Adj.During 31.03.2019 31.03.2018 Statement & Adj. 31.03.2019 31.03.2019
During the Year of Profit & During the
the Year Loss Year

1 Buildings 118.61 - - 118.61 8.67 2.89 - 11.56 107.05

(Leased)
Total 118.61 - - 118.61 8.67 2.89 - 11.56 107.05

69
 Annual Report 2018-19

Notes to Standalone Financial Statements 2018-19

NOTE 4 : INVESTMENT PROPERTY (Contd..)
The changes in the Carrying value of the Investment Property for the year ended March 31, 2018 are as follows:
(Rs. in Lakhs)

S. Particulars Carrying Value as at 31.03.2018 Depreciation as at 31.03.2018 Net Block

No as at
31.03.2018
As at Additions Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2017 & Adj. & Adj.During 31.03.2018 31.03.2017 Statement & Adj. 31.03.2018 31.03.2018
During the Year of Profit & During the
the Year Loss Year

1 Buildings 118.61 - - 118.61 5.78 2.89 - 8.67 109.94

(Leased)
Total 118.61 - - 118.61 5.78 2.89 - 8.67 109.94

NOTE 5 : OTHER INTANGIBLE ASSETS

The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2019 are as follows:
(Rs. in Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2019 Accumulated Depreciation as at 31.03.2019 Net Block
No As at Additions Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2018 & Adj. & Adj.During 31.03.2019 31.03.2018 Statement & Adj. 31.03.2019 31.03.2019
During the Year of Profit & During the
the Year Loss Year

1 Technical 649.62 - - 649.62 622.72 6.72 - 629.44 20.18

Knowhow
2 Software 1.18 152.94 - 154.12 0.38 7.68 - 8.06 146.06
Total 650.80 152.94 - 803.74 623.10 14.40 - 637.50 166.24

The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2018 are as follows:
(Rs. in Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block
No As at Additions Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2017 & Adj. & Adj.During 31.03.2018 31.03.2017 Statement & Adj. 31.03.2018 31.03.2018
During the Year of Profit & During the
the Year Loss Year

1 Technical 616.00 33.62 - 649.62 616.00 6.72 - 622.72 26.90

Knowhow
2 Software 0.18 1.00 - 1.18 0.18 0.20 - 0.38 0.80
Total 616.18 34.62 - 650.80 616.18 6.92 - 623.10 27.70

NOTE 6: INTANGIBLE ASSETS UNDER DEVELOPMENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Enterprise Resource Planning Licenses and Implementation 926.75 926.75
Less: Provision for Impairment (926.75) (926.75)
Total - -

70
 Corporate Overview Statutory Reports Financial Statements

Notes to Standalone Financial Statements 2018-19

NOTE 7: INVESTMENTS NON-CURRENT
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Investments in Equity Instruments (UnQuoted-Considered at Fair Value)
1. Investment in M/s Andhra Pradesh Gas Power Corporation limited
7,28,900 Equity Shares of Rs. 10/- each fully paid including 1,92,960 293.91 291.70
bonus shares of Rs. 10/-each

2. Investment in ECIL Employees Consumer Co-operative Society Limited, 0.02 0.02

250 shares of Rs. 10/- each fully paid
3. Investment in Joint Venture M/s. ECIL - Rapiscan Ltd.,
14,70,000 equity shares in Rs. 10/- each fully paid including 7,35,000 Bonus 73.50 73.50
shares of Rs. 10 each
Total 367.43 365.22

NOTE 8: TRADE RECEIVABLES NON-CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good 8,371.45 4,048.82
Doubtful 8,582.43 11,367.94
Allowances for doubtful debts/Liquidated Damages (8,582.43) (11,367.94)
Total 8,371.45 4,048.82

NOTE 9: LOANS NON-CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Others Loans 1.31 1.31
Less : Provision for Doubtful Loans (1.31) (1.31)
Total - -

NOTE 10: OTHER FINANCIAL ASSETS NON- CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good
Deposits 3,609.64 2,340.34
Unbilled Revenue - 10,581.68
Claims Receivable 2,917.64 595.35
Unsecured, Doubtful
Deposits 77.33 77.33
Less: Provision for Doubtful Deposits (77.33) (77.33)
Claims Receivable 5.31 5.31
Less: Provision for Doubtful Claims (5.31) (5.31)
Total 6,527.28 13,517.37

71
 Annual Report 2018-19

Notes to Standalone Financial Statements 2018-19

NOTE 11: DEFERRED TAX ASSET
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deferred Tax Liabilities
Property plant and equipment and intangible assets 6,886.37 4,934.77
Investments remeasurement 202.80 202.80
Change in the opening value of Investments(fair value)
Total Deferred Tax Liabilities 7,089.17 5,137.57
Deferred tax assets
Provision for employee benefits 12,547.30 10,538.70
Provision for doubtful debts and advances 9,128.95 11,820.58
Provision for warranty 1,696.84 987.27
Others 1,348.33 1,320.81
Total Deferred Tax Assets 24,721.42 24,667.36
Net Deferred Tax Assets 17,632.25 19,529.79
Deferred Tax Asset 6,160.71 6,823.71

NOTE 12: OTHER NON- CURRENT ASSETS

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good
Capital Advances 440.37 1,244.17
Others 2,617.37 5,592.72
Unsecured, Doubtful
Advance to Suppliers 469.70 375.82
Less : Provision for Doubtful Advances (469.70) (375.82)
Total 3,057.74 6,836.89

NOTE 13: INVENTORIES

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Raw Materials 27,042.44 28,355.80
(includes goods in transit valued at Rs. 6696.48 Lakhs as on 31st March ,2019,
Rs. 3916.71 Lakhs as on 31st March, 2018 )
Less : Provision for Obsolete Raw materials (415.78) (417.90)
Work-in-Progress 65,498.60 17,392.47
Finished Goods 6,250.05 10,066.41
Stores & Spares 2,118.05 2,214.24
Loose Tools 19.41 10.66
Others:
Packing Material 146.83 295.72
Scrap 250.00 200.00
Total 1,00,909.60 58,117.40

72
 Corporate Overview Statutory Reports Financial Statements

Notes to Standalone Financial Statements 2018-19

NOTE 14: TRADE RECEIVABLES- CURRENT
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good 1,53,052.64 1,65,277.76
Doubtful - -
Less: Provision for Doubtful Debts/Liquidated Damages - -
Total 1,53,052.64 1,65,277.76

NOTE 15: CASH & CASH EQUIVALENTS

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Balances with Banks
(a) in Current Account 763.90 2,551.33
Cash on hand 0.05 3.91
Others
(a) Imprest Cash With Officers 0.33 0.32
(b) Remittances in Transit 9.27 23.44
Total 773.55 2,579.00

NOTE 16: BANK BALANCES OTHER THAN ABOVE

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Earmarked Balance with Bank 40.07 20.30
Bank Deposits with maturity more than 3 months but less than 12 months - 6,000.00
Total 40.07 6,020.30

NOTE 17: LOANS - CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Advance to Employees 51.77 536.33
Total 51.77 536.33

NOTE 18: OTHER FINANCIAL ASSETS - CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Deposits 282.64 1,629.18
Unbilled Revenue - 37,019.56
Claims Receivable 5,334.00 1,762.91
Contract Asset-Accrued Income 2,988.05 5,125.97
Total 8,604.69 45,537.62

73
 Annual Report 2018-19

Notes to Standalone Financial Statements 2018-19

NOTE 19: OTHER CURRENT ASSETS
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Advance to Suppliers 5,431.58 8,036.06
Advance to Related Parties 0.12 502.44
Other Advances 1,303.13 658.26
Indirect Tax credits 1,053.84 7,344.04
Total 7,788.67 16,540.80

NOTE 20: EQUITY SHARES

Particulars As at As at
March 31, 2019 March 31, 2018
Authorized
Ordinary shares of par value of Rs. 1000/- each number 20,00,000 20,00,000
Amount in Lakhs 20,000.00 20,000.00
Issued, subscribed and fully paid
Ordinary shares of par value of Rs. 1000/- each number 16,33,712 16,33,712
Amount in Lakhs 16,337.12 16,337.12

Reconciliation of number of shares:

Particulars As at As at
March 31, 2019 March 31, 2018
Equity Shares outstanding at the begining of the year 16,33,712 16,33,712
Add:
1. No. of Shares allotted as fully paid up bonus shares during the year - -
2. No. of Shares allotted during the year as fully paid up pursuant to a contract - -
without payment being received in cash shares during the year - -
3. No. of Shares allotted to employees pursuant to ESOPs/ ESPs - -
4. No. of Shares allotted for cash pursuant to public issue. - -
Less:
1. No. of shares bought back during the year - -
Equity Shares outstanding at the end of the year 16,33,712 16,33,712

No. of Shares in the Company held by shareholder holding more than 5 percent

Name of the Shareholder As at As at

March 31, 2019 March 31, 2018
President of India* 16,33,712 16,33,712
Percentage of shares held 100% 100%
*Includes 3 Shares held by Nominees of Govt. of India

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NOTE 20: EQUITY SHARES (Contd..)
During the period of Five years immediately preceeding the reporting date:

Particulars As at As at
March 31, 2019 March 31, 2018
1. Shares allotted for consideration other than cash - -
2. Shares allotted as bonus shares issued and - -
3. shares bought back - -

NOTE 21: OTHER EQUITY

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
General Reserve
Opening Balance 2,056.46 2,056.46
Add: Transfer from Statement of P&L - -
Closing Balance 2,056.46 2,056.46
Surplus in the Statement of Profit and Loss
Opening Balance 66,411.30 66,473.80
Add: Restatement Adjustments (4,536.74) (2,445.41)
Add: Income/(loss) for the year 23,760.31 3,742.19
Less: Dividend (1,317.98) (1,129.37)
Dividend Tax (270.98) (229.91)
Closing Balance 84,045.91 66,411.30
Other Comprehensive Income
Opening Balance 131.83 222.90
Add: Restatement Adjustments - (129.27)
Add: Income/(loss) for the year 1.44 38.20
Closing Balance 133.27 131.83
Total 86,235.64 68,599.59

NOTE 22: TRADE PAYABLES- NON CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Dues to Micro, Small & Medium Enterprises - -
Other than Micro, Small & Medium Enterprises
i) Trade Payables 1,758.15 1,750.32
ii) Expenses Payable 5,306.30 1,449.51
Total 7,064.45 3,199.83

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NOTE 23: OTHER FINANCIAL LIABILITIES - NON CURRENT
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deposits 114.62 151.22
Security Deposit 1,069.20 1,069.20
Creditors for Capital Goods 2,543.08 9,965.28
Others 1,661.10 2,182.16
Total 5,388.00 13,367.86

NOTE 24: PROVISIONS -NON CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
For Employee Benefits
Gratuity 52.03 52.03
Leave Encashment 5,148.56 5,334.83
Pension 5,175.09 2,805.85
Warranty 2,215.30 2,721.10
Total 12,590.98 10,913.81

NOTE 25: OTHER LIABILITIES NON CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Contract Liabilities-Advance Received from Customers 14,216.64 12,145.83
Government Grants-Yet to be Utilized 4,538.26 228.96
Government Grants-Deferred Income 1,898.66 1,428.87
Total 20,653.56 13,803.66

NOTE 26: BORROWINGS - CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
(i) Loans repayable on Demand
From Banks - -
Cash Credit -Secured 1.91 -
Short Term Loans -Unsecured 4,482.05 -
(ii) Other Loans from Banks
Over Draft against Fixed Deposits -Secured - -
Total 4,483.96 -

The cash credit is secured by way of hypothecation of all chargeable current assets of the Company including raw material, stock
in progress, finished goods, stores and spares and receivables both present and future and first charge on movable fixed assets of
the Company both present and future as collateral security.

The cash credits was availed from State Bank of India as part of consortium facilities and is repayable on demand carrying an interest
rate of 8.70% p.a (Previous year 8.25% p.a).

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NOTE 27: TRADE PAYABLES - CURRENT
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Micro, Small & Medium Enterprises Payables 7,011.32 4,053.68
Other than Micro, Small & Medium Enterprises
i) Trade Payables 45,126.51 45,381.44
ii) Expenses Payable 24,828.96 44,150.50
Total 76,966.79 93,585.62

NOTE 28: OTHER FINANCIAL LIABILITIES - CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deposits 941.39 1,023.17
Interest accrued and due on borrowings - -
Others 10,977.04 10,962.25
Total 11,918.43 11,985.42

NOTE 29: PROVISIONS -CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
For Employee Benefits
Gratuity 5,359.55 6,171.18
Leave Encashment 2,187.59 2,379.47
Others
Warranty Provision 1,903.77 1,957.39
Total 9,450.91 10,508.04

NOTE 30: OTHER LIABILITIES CURRENT

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Contract Liabilities-Advance Received from Customers 56,468.77 97,655.37
Government Grants-Yet to be Utilized 3,718.66 6,202.28
Government Grants-Deferred Income 2,000.03 1,505.24
Total 62,187.46 1,05,362.89

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NOTE 31: REVENUE FROM OPERATIONS
(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Sale of Products 2,43,099.26 97,382.78
Sale of Services 30,643.95 30,096.14
2,73,743.21 1,27,478.92
Less: Liquidated Damages on Executed Contracts (7,403.14) -
2,66,340.07 1,27,478.92
Other Operating Revenue
a) Sale of Manuals 0.31 0.26
b) Customs Duty Realisations 49.87 1,326.20
c) Provisions no longer required 2,777.23 11,651.76
d) LD's recovered from Vendors 462.35 273.36
e) Reimbursement of Freight & Insurance 2,032.19 85.72
Total 2,71,662.02 1,40,816.22

NOTE 32: OTHER INCOME

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
1. Interest On
a) Term Deposit Receipts 14.68 895.55
b) Others 227.89 1,677.56
2. Dividend From Joint Venture Company 18.38 18.38
3. Other Non-Operating Income
a) Rent 67.06 60.26
b) Unclaimed liabilities written back 5.68 15.72
c) Grants related Deferred Income 1,791.93 966.91
d) Miscellaneous 345.44 492.06
Total 2,471.06 4,126.44

NOTE 33: COST OF MATERIALS CONSUMED

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
1. Consumption of Raw Materials and Components
Opening Stock 24,021.20 13,534.78
Add: Purchases 1,56,984.52 97,451.56
Less: Closing Stock (19,930.18) (24,021.20)
1,61,075.54 86,965.14
Less: Grants-in-aid (2,501.06) (1,316.08)
1,58,574.48 85,649.06
2. Consumption of :
Stores and Spares 557.25 111.31
Packing materials 171.93 150.04
Tools 23.28 15.15
3. Cost of Accessories Consumed 244.33 549.70
Total 1,59,571.27 86,475.26

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NOTE 34: CHANGES IN INVENTORY OF FINISHED GOODS AND WIP
(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
CLOSING STOCKS
Finished Stock 6,250.05 10,066.41
Work-in-Progress 65,498.60 17,392.47
Scrap 250.00 200.00
71,998.65 27,658.88
LESS: OPENING STOCKS
Finished Stock 10,066.41 583.32
Work-in-Progress 59,077.09 6,687.88
Scrap 200.00 300.00
69,343.50 7,571.20
Changes in Inventories Decretion/(Accretion) (2,655.15) (20,087.68)

NOTE 35: EMPLOYEES’ BENEFIT EXPENSES

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Salaries,Wages and Bonus 28,989.60 27,840.97
Contribution to Provident Fund including administrative charges 2,635.71 2,462.64
Provision for Pension 2,369.24 891.11
Provision for Gratuity 834.55 3,825.20
Welfare expenses 3,578.61 1,455.29
Total 38,407.71 36,475.21

NOTE 36: FINANCE COST

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Interest Expenses 2,262.53 2,015.90
Other Borrowing Costs 11.04 8.14
Total 2,273.57 2,024.04

NOTE 37: DEPRECIATION AND AMORTIZATION EXPENSES

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Depreciation / Amortisation for the year
Depreciation on PPE 1,967.20 1,736.56
Depreciation on Grants related assets 1,791.93 966.91
Depreciation on Investment Property 2.89 2.89
Amortization of Intangible Assets 14.40 6.92
Total 3,776.42 2,713.28

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NOTE 38: OTHER EXPENSES
(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
1. Power and Fuel 1,035.29 881.50
2. Water charges 570.43 617.68
3. Professional and Consultancy charges 3,342.31 1,781.73
4. Travelling and Conveyance expenses 2,294.28 1,149.90
5. Repairs & Maintenance
a) Buildings 313.69 290.20
b) Plant & Machinery 51.03 115.79
c) Others 557.01 324.05
6. Stores Incidentals-Inwards 11,268.08 5,086.25
7. Rents 253.53 250.62
8. Rates and Taxes 383.90 269.17
9. Insurance 129.16 103.41
10. Printing & Stationery 116.52 92.78
11. Postage, Telegram, Telephones & Telex 65.54 87.20
12. Advertisement 57.21 114.31
13. Guest House expenses 125.69 113.54
14. Entertainment expenses 9.99 6.08
15. Books and Periodicals 4.37 9.70
16. Vehicle expenses 314.94 290.74
17. Staff Training expenses 31.74 53.47
18. Security Expenses 1,816.78 1,631.43
19. Directors` fees and Travelling expenses 1.80 -
20. Payment to Auditors
a) As Statutory Auditor 10.00 10.00
b) For Taxation Matters - -
c) For Compnay Law Matters - -
d) For Management Services - -
e) For Other Services 0.20 0.10
f) For Reimbursement of expenses 0.62 0.51
21. Loss/(Gain) on Exchange Rate Variation (Net) 479.44 497.17
22. Bank Charges 96.80 160.75
23. Commission on Bank Guarantees 67.78 99.71
24. Selling Expenses 321.81 297.84
25. Commission to Selling Agents 8.54 50.44
26. Freight Outwards 2,105.68 26.73
27. Expenditure on Warranty 1,573.47 998.08
28. Liquidated Damages on Unexecuted Contracts 3,731.55 7,457.46
29. Royalties 137.34 191.16
30. Research & Development expenses 2,378.51 1,546.43
31. Provisions:
Doubtful Advances - 40.97
For Obsolete Stock 886.31 123.34
Doubtful Debts-S.Debtors 4,702.94 4,912.56
Others - 926.75

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NOTE 38: OTHER EXPENSES (Contd..)
(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
32. Amounts Written off
a) Bad Debts written off 6,214.21 0.18
Less: Provisions withdrawn (6,213.92) -
b) Write off of Raw Materials 871.66 -
Less: Provisions withdrawn (871.66) -
c) Fixed Assets written off 17.85 1.70
33. Corporate Social Responsibility 135.62 139.02
34. Transfer to other Accounts
a) Expenditure on Research & Development (2,378.51) (1,546.43)
b) Warranty charges (143.61) (115.07)
c) Departmental Transfers- Production (1,197.43) (537.61)
d) Service Tax Input Credit 80.22 (565.18)
e) Corporate Social Responsibility - (23.44)
f) Repairs & Maintenance (Internal) (24.09) (105.77)
g) Grants-in-Aid (Other than material) - -
35. Donations - 0.20
36. Miscellaneous expenses 320.92 487.94
Total 36,055.54 28,345.09

NOTE 39: OTHER COMPREHENSIVE INCOME

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Remeasurement of Investment in APGPCL 2.21 58.71
Income tax thereon (0.77) (20.51)
Remeasurement of Define Benefit Plans-Actuarial Loss (753.82) (2,339.41)
Income Tax relating to these items 263.38 809.67
Total (489.00) (1,491.54)

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NOTE 40: EXEMPTION FROM DISCLOSURE:
The Company has been exempted from disclosure of certain details mentioned below under Paragraph 5 of Part II of Schedule
III of the Companies Act 2013 under general instructions for preparation of Statement of Profit and Loss as per the notification
F.No:1/19/2013 -CL-V-Part dated 4th September 2015, issued by Ministry of Corporate Affairs.

Para Particulars
5(ii)(a) In the case of manufacturing companies
5(ii)(a) 1 Raw materials under broad heads
5(ii)(a) 2 Goods purchased under broad heads
5(ii)(e) In case of other companies, gross income derived under broad heads
5(iii) In the case of all concerns having work in progress, works in progress under broad heads
5(viii) The statement of profit and loss shall also contain by way of a note the following information namely :-
a) Value of imports calculated on CIF basis by the Company during the financial year in respect of
I) Raw materials
II) Components and spare parts
III) Capital goods
b) Expenditure in foreign currency during the financial year on account of royalty, know how, professional and
consultation fees, interest and other matters.
c) Total value of all imported raw materials, spare parts and components consumed during the financial year
and the total value of all indigenous raw materials, spare parts and components similarly consumed and the
percentage of each to the total consumption.
e) Earnings in foreign exchange classified under the following heads, namely :-
I. Export of goods calculated on F.O.B. basis;
II. Royalty, know how, professional and consultation fees;
III. Interest and dividend;
IV. Other Income, indicating the nature thereof.

NOTE 41: IMPACT OF CHANGES IN ACCOUNTING POLICIES:

A. Ministry of Corporate affairs has issued the new Accounting standard IND AS 115–Revenue from Contracts with customers
which was made effective from 1st April, 2018 which supersedes the erstwhile IND AS 18–Revenue and IND AS 11–Construction
contracts. As the Company had opted to apply the standard retrospectively with cumulative effect of initially applying this
standard recognised as on 1st April, 2018, the previous year figures were not restated relevant to the line entries relating to this
standard.

B. The Accounting policy on revenue recognition was modified during the year 2018-19 in line with the Accounting Standard
IND AS 115 effective from 1st April, 2018 as per which revenue from sale of goods and services was accounted net of variable
consideration (Liquidated Damages and Penalties levied by the customer as per the terms of the contract). Accordingly an
amount of Rs. 7403.14 Lakhs being the liquidated damages and penalties accrued on executed contracts has been reduced
from revenue from operations during the year 2018-19. The liquidated damages accrued on unexecuted contracts were
included under note “Other Expenses”.

As the recognition of revenue under percentage completion method as per erstwhile IND AS 11 was discontinued, under
the new accounting policy on Revenue Recognition, the unbilled revenue outstanding as on 1st April, 2018 was brought into
books as work in progress to the extent of costs incurred and adjusted against the “Other Equity” to the extent of profit margin
included in the unbilled revenue. Accordingly opening work in progress as on 1st April, 2018 is increased by an amount of
Rs. 41684.62 Lakhs due to the above adjustment and “Other Equity” as on 1st April, 2018 is decreased by Rs. 5916.62 Lakhs.

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C. The Accounting policy on Liquidated damages is also modified during the year 2018-19 to net off the liquidated damages
against Trade Receivables on executed contracts. In line with the modified accounting policy the outstanding provisions
for liquidated damages on executed contracts as on 31st March, 2018 were also netted off against the outstanding Trade
Receivables. Accordingly an amount of Rs. 19372.29 Lakhs has been reduced from the Trade Receivables as well as outstanding
provisions for liquidated damages as on 31st March, 2019. There is no impact in Statement of Profit and Loss on account of this
adjustment.

D. As the Company is preparing the separate financial statements, investments in Joint Venture in standalone financial statements
can be considered at cost or at fair value as per IND AS 28. Accordingly the existing accounting policy on investments has been
changed to value the investments in Joint Venture at cost. In line with the above the value of investments in Joint Venture is
decreased by an amount of Rs. 3456.04 Lakhs and Other Equity” is decreased by Rs. 2259.90 Lakhs (net of taxes).

NOTE 42: REVENUE FROM CONTRACTS WITH CUSTOMERS:

A. Company has recognized the following revenue (before netting off liquidated damages) during the year from contracts with its
customers
(Rs. in Lakhs)
Particulars For the period ended For the period ended
March 31, 2019 March 31, 2018
Sales of Products 2,43,099.26 97,382.78
Sale of Services 30,643.95 30,096.14

B. Details of Contract Assets and Liabilities :

(Rs. in Lakhs)
Particulars Contract Assets Contract Liabilities
Opening Balance as on 1st April 2018 5,125.97 1,09,801.20
Closing Balance as on 31st March 2019 2,988.05 70,685.41

C. Cost to obtain / fulfill the contract: Amount recognised as asset as at 31st March, 2019: Rs. Nil.
D. Status of Unexecuted Contracts with Customers:
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Opening Balance of unexecuted portion of the contracts 3,52,000 2,56,000
Add: Contracts received during the year 2,03,400 2,22,900
Less: Contracts executed during the year 2,72,800 1,26,900
Closing balance of unexecuted portion 2,82,600 3,52,000

E. As the Company is mainly catering to the needs of Strategic sectors, the disaggregation of Revenue into various segments is
not disclosed due to reasons of confidentiality.

F. The contracts undertaken by the Company are large in number and the total estimated cost of contracts undergoes a change
on account of change in estimates as well as change in scope of work dynamically at the request of customer. Had the Company
followed erstwhile IND AS-11 and IND AS-18 during F.Y 2018-19, the impact of line items that would have been affected, could
not be worked out, as it is impracticable to work out the contract revenue, as, it is prone to subjective assumptions to arrive at
the percentage completion of the contract revenue and the profit element of the despatches made out of the opening unbilled
revenue.

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NOTE 43 : INCOME TAX :
A reconciliation of the Income Tax provision to the amount computed by applying the statutory income tax rate to the profit before
tax is summarized as follows:
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Profit before tax 36,703.72 8,400.60
Enacted Tax rates for the financial year 34.94% 34.61%
Expected tax expense (A) 12,824.28 2,907.44
Tax affect on allowable items (B) (6,195.23) (6,282.98)
Tax affect on disallowable items (C) 4,741.70 3,891.33
Tax affect of OCI - Gratuity items (D) (263.39) 809.67
Tax on incomes chargeable under other heads (E) 17.67 24.21
Provision for income tax for the current year (A+B+C+D+E) 11,125.03 1,349.67
Interest on income tax for the year 514.82 -
Current tax for the year 11,640.00 1,349.67
Tax credits allowable - -
Deferred tax for the year excluding OCI Items 662.23 1,768.57
Tax expense of earlier years adjusted (112.64) 10.42
Net tax expense for the year 12,189.59 3,128.66
Deferred Tax for the year on OCI Items (0.77) 20.51
Total deferred tax affect for the year 663.00 1,789.08

NOTE 44: EMPLOYEE BENEFITS

a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to a separate trust ECIL Employees
Provident Fund, which invests the funds in permitted securities. Contribution to family (Employees) pension scheme is paid to
the appropriate authorities. The contribution of Rs. 2635.71 Lakhs (Previous year Rs. 2462.64 Lakhs) including administrative
charges is recognized as expense and is charged in the Statement of Profit and Loss. The obligation of the Company is to
make such fixed contribution and to ensure a minimum rate of return as specified by GOI to the members. The overall interest
earnings and cumulative surplus is more than the statutory interest payment requirement during the year.

b) Gratuity: Gratuity is a funded Defined Benefit Plan payable to the qualifying employees on separation. It is managed by a
separate trust, ECIL Employees Gratuity Fund through ‘Employees Group Gratuity cum Life Assurance Scheme’ of the Life
Insurance Corporation of India.

Company makes annual contribution to the Fund based on the present value of the Defined Benefit obligation and the related
current service costs which are measured on actuarial valuation carried out as on Balance Sheet date. The liability has been
assessed using Projected Unit Credit (PUC) Actuarial Cost Method.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the year ended
March 31, 2019 are as follows.

I. Change in Benefit obligation :

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Present value of obligation as at the beginning 15,367.94 10,942.29
a) Interest Cost 1,076.05 779.36
b) Current Service Cost 394.48 396.32
c) Past Service Cost - 3,362.28
d) Benefits paid 3,834.48 2,400.55
e) Actuarial (gain) / loss 750.27 2,288.23
Present value of obligation at the end of the period 13,754.25 15,367.94

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II. Change in Fair value of plan assets
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Fair value of Plan Assets at the beginning of the year 9,196.76 9,237.04
a) Expected return on plan assets 635.98 710.96
b) Contributions 2,400.49 1,700.48
c) Benefits paid 3,834.48 2,400.55
d) Actuarial (gain)/loss on plan assets (3.55) (51.18)
Fair value of Plan Assets at the end of the period 8,395.20 9,196.76
Excess of Obligation over Plan Assets 5,359.05 6,171.18

III. Expenses recognized in the Statement of Profit & Loss :

(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
a) Total service Cost 394.47 3,758.60
b) Interest Cost 1,076.06 779.36
c) Expected return on Plan Assets 635.98 710.96
d) Net Actuarial (gain)/loss recognized in the period 753.82 2,339.41
Expenses recognized in the statement of Profit & Loss 1,588.37 6,166.41

IV. Amounts recognized in the Balance Sheet

(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
a) Present value of Obligation as at the end of the period 13,754.25 15,367.94
b) Fair value of Plan Assets at the end of the period 8,395.20 9,196.76
c) Funded Status (5,359.05) (6,171.18)
d) Liability recognized in Balance Sheet** 5,411.58 6,223.21
**The above amount includes Rs. 52.03 Lakhs (previous year Rs. 52.03 Lakhs) towards gratuity payable to ex-employees which is not claimed by them as at 31-3-2019.

V. Major Category of plan assets:

Not applicable as the funds were invested through Fund Manager, Central Office, Investment Department of Life Insurance
Corporation of India.

VI. Principal Assumptions

Particulars As at As at
March 31, 2019 March 31, 2018
a) Discounting Rate 7.5% 8%
b) Salary Escalation Rate 6% 6%

The estimates of future salary increase considered in actuarial valuation, have been factored in inflation, seniority, promotion
and other relevant factors.

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c) Leave Encashment:

Earned Leave/Vocation Leave can be encashed to a maximum of 50% of the leave at the credit of the employee subject to
the condition that the leave encashed at a time shall not be less than 10 days and shall not be more than 54 days in case of
Earned Leave, 90 days in case of Vocation Leave. However, employees are entitled to a maximum of 180 / 300 days towards the
terminal benefits on superannuation/ VR/Resignation/Termination. The scheme is unfunded and liability is recognized on the
basis of actuarial valuation. An amount of Rs. 1395.46 Lakhs (previous year Rs. 3273.97 Lakhs) has been provided during the
year 2018-19 to keep the leave encashment liability as per the actuarial valuation at Rs. 7336.15Lakhs (previous year Rs. 7714.30
Lakhs) as on 31.03.2019.

The actuarial assumption for salary rise is 6 % (Previous Year 6%) and discount rate is 7.5% (Previous Year 8%).

d) Pension:

As per the guidelines issued by Department of Public Enterprises, Government of India, the Company is allowed to extend
upto 30% of the basic pay plus dearness pay as Superannuation benefits including contributory provident fund, gratuity etc.
In compliance with the said DPE guidelines issued for pay revision of executives, a provision towards pension for executives is
made for Rs. 1211.09 Lakhs during the Financial Year 2018-19 (Previous year Rs. 891.11 Lakhs).

In line with the provision of Pension for Executives, Management has approved and extended similar benefit to workmen during
the year with effect from the year 2015-16. Accordingly a provision towards pension for workmen is made for Rs. 1158.07 Lakhs
during the financial year 2018-19.

e) Wage Revision for Workmen:

Wage scales for Workmen are due for revision from 1st January, 2017. The wage revision agreement with the management was
concluded in the year September 2018 and the new scales were implemented from October, 2018. The wage arrears from 1st
January, 2017 to 31st March, 2018 included in “Employees’ Benefit Expenses” amounting to Rs. 882.07 Lakhs was paid during
the year 2018-19.

f) Fringe Benefits:

The negotiations for implementing Fringe benefits on the revised scales for Officers were concluded and the negotiations with
workmen are at the final stage of negotiation. An amount of Rs. 674.64 Lakhs was provided during the year 2018-19 towards
the Fringe benefits.( Previous Year Nil.)

NOTE 45: GOVERNMENT GRANTS:

Unspent balance of Rs. 8256.92 Lakhs as on March 31, 2019 (previous year Rs. 5968.14 Lakhs) out of Grants-in-Aid received from
Bhabha Atomic Research Centre (BARC) under XII Five Year Plan for facility creation and Grants received from Government of India
(GOI) for undertaking various Research & Development Projects is included under “Other Current Liabilities” in the Balance Sheet.

(Rs. in Lakhs)
S. No. Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Grants
1 Opening Balance 5,968.14 3,386.58
2 Total receipts during the year 5,415.35 6,803.62
3 Adjustments 2,142.97 29.51
4 Utilized during the year towards
a) Revenue Items 2,513.02 1,316.08
b) Capital Items 2,756.52 2,935.50
5 Closing balance 8,256.92 5,968.14

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Notes to Standalone Financial Statements 2018-19

NOTE 46: RELATED PARTY DISCLOSURES:
i) Remuneration to Key Management Personnel – Rs. 169.89 Lakhs (Previous year Rs. 80.82 Lakhs) as detailed below:

Name of the Key Position Held Salary Contribution Pension and Total
Management Personnel to PF other benefits
Shri Debashis Das Chairman & Managing Director*
(from 01.04.2018 to 30.06.2018)
Rear Admiral Sanjay Director (Technical) 25.86 3.29 11.15 40.30
Chaubey (Retd.) (from 27.04.2018 to 30.06.2018) & (--) (--) (--) (--)
Chairman & Managing Director
(from 01.07.2018 onwards)
Shri Kishor Rungta Director (Finance) 41.42 3.30 37.72 82.44
(from 01.04.2018 to 01.02.2019) (25.51) (2.70) (9.02) (37.23)
Shri Deepak Vijayendra Director (Personnel) 8.22 1.07 3.81 13.10
Sastry (from 12.12.2018 to 09.05.2019) (--) (--) (--) (--)
Shri V S B Babu Director (Personnel) 18.54 0.54 0.00 19.08
(from 01.04.2018 to 04.04.2018) (25.50) (2.70) (5.93) (34.13)
Shri MSRS Prasad Company Secretary 10.07 1.23 3.67 14.97
(from 01.03.2018 onwards) (0.85) (0.09) (0.11) (1.05)
Shri Jai Bhagwan Sharma Company Secretary -- -- -- --
(from 01.04.2017 to 18.08.2017) (4.46) (0.47) (0.59) (5.52)
Shri Ashish Kumar Company Secretary -- -- -- --
Srivastava (from 02.11.2017 to 28.02.2018) (2.32) (0.25) (0.32) (2.89)
Grand Total 104.11 9.43 56.35 169.89
(58.64) (6.21) (15.97) (80.82)
*Shri Debashis Das was given Additional Charge as Chairman & Managing Director of ECIL with effect from November 01, 2016 to 30th June 2018 and his
remuneration was drawn from BARC.

ii) The Company has 49% stake in the equity share capital of M/s ECIL-Rapiscan Limited, incorporated as joint venture with OS Inc.USA.

Details of transactions, other than Joint Venture activities between ECIL and ECIL Rapiscan Limited are as under:
(Rs. in Lakhs)
Particulars For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Purchase of Goods during the year 32.00 Nil
Sale of Goods during the year Nil Nil
Services rendered during the year Nil Nil
Services received during the year 513.05 1,531.91
Advances outstanding 0.12 501.54
Amounts payable 721.39 1,059.09
Amounts receivable Nil 11.43

As the envisaged economic activity of the Joint Venture has ceased to exist due to obsolescence of the technology, the proposal
for dissolution of the Joint venture Company has been proposed by the Joint Venture partner M/s. OSI Systems Inc. USA.

The Board of Directors has decided to appoint a Financial Institution for conducting Financial Due Diligence of the Joint
Venture. M/s ECIL Rapiscan Limited has appointed IDBI Capital Markets Ltd as valuer of Joint Venture. Based on the valuation
report, M/s OSI Systems Inc. has proposed an offer to take over 49% ECIL Share in the Joint Venture. The Board of ECIL is yet
to take a decision in this regard. Further, presently no products are being manufactured and sold by ECIL to the Joint Venture
Company as a part of JV agreement.

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Notes to Standalone Financial Statements 2018-19

NOTE 47: EARNINGS PER SHARE:
(a) Earnings per share is calculated as shown below:

Particulars Units For the Year ended For the Year ended
March 31, 2019 March 31, 2018
Numerator : Rs. Lakhs 24,250.75 5,271.93
Net Profit after tax as per Statement of Profit and Loss
Denominator : No.s 16,33,712 16,33,712
Number of equity shares
Number of equity shares allotted during the year No.s NIL NIL
Weighted average number of equity shares for calculation of No.s 16,33,712 16,33,712
earnings per share (Basic & Diluted)
Nominal value of equity share Rs. 1,000/- 1,000/-
Earnings per share (Basic & Diluted) Rs. 1,484.40 322.70

b) Dividend: The Board of Directors have recommended a dividend at Rs. 153.02 Per share of Rs. 1000 amounting to Rs. 2500.00
Lakhs for the year 2018-19 excluding dividend distributiontax.

NOTE 48: PROVISIONS:

(a) Provision is made for warranty expenditure at 0.5% on sale value of “Point of sale contracts” and 2% on sale value of “Over the
time sale contracts”

The details of provisions made are as under:

(Rs. in Lakhs)
As at 31st March 2019
Particulars On Point of On over the
time sales period contracts
Opening Balance 987.27 3,691.22
Provisions made during the year 1,069.81 498.67
Amounts used / reversed (i.e, incurred and charged against provision) 360.24 1,767.66
Closing balance 1,696.84 2,422.23

Previous figures were not restated as per Note No.41A.

NOTE 49: INVESTMENT PROPERTY:

The Company is not holding any assets which qualify the definition of Investment property as there is no intension to earn rentals or
for capital appreciation. However, some properties are earning rental income due to administrative reasons; those assets are shown
separately in the investment property schedule. The measurement of the property is considered at cost.

The amounts recognized in Profit or Loss for

I. Rental income Rs. 67.06 Lakhs

II. Direct Operating expenses arising from Investment Property that generated rental income during the period - Nil.
III. Direct Operating expenses arising from Investment Property that did not generate rental income during the period - Nil.
IV. Restrictions in the realisability on Investment property or the remittance of income and proceeds of disposal - Nil
V. Contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements
- Nil.

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Notes to Standalone Financial Statements 2018-19

NOTE 50: CONTINGENT LIABILITIES:
(a) Contingent Liabilities and Capital Commitments
(Rs. in Lakhs)
S. No. Particulars As at As at
March 31, 2019 March 31, 2018
i) Contingent Liabilities
(to the extent not provided for)
a) Claims against the Company not acknowledged as debt
(i) Court/Arbitration cases 5,917.09 6,495.89
(ii) Demands from Government authorities and appeals filed against 48,057.11 45,380.16
the Company not provided for in respect of taxation matters
b) Others
i) Letters of Credit 8,568.38 6,730.08
ii) Indemnity Bonds 65,277.58 1,03,829.00
iii) Corporate Guarantees 35,844.99 29,051.29
iv) Others 1,729.82 1,760.11
c) No provision is considered necessary in respect of the differential sales tax liability of Rs. 66.49 Lakhs estimated at
next higher rate of tax that may devolve on the Company for non-receipt & submission of statutory forms in respect
of pending assessments for the years 2016-17 to 2017-18 (previous year Rs. 243.36 Lakhs), as the Company is
confident of collecting the statutory forms from the customers for onward submission to Commercial tax department.
d) The Company has no hedging arrangements with the banks for payment of foreign currency transactions during the year.
e) There exists no liability whether crystallized or contingent as on 31.03.2019 in terms of the Civil Liability for Nuclear
Damage Act, 2010.

ii) Commitments:
(Rs. in Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
(a) Estimated amount of contractual commitments for the acquisition of 2,244.30 2,808.82
Property, Plant & Equipment and not provided for (Net of Advances)
(b) Other commitments Nil Nil

NOTE 51: OPERATING SEGMENTS

As the Company is mainly engaged in Defence production, exemption is available from applicability of Accounting Standard on
Segment Reporting under Section 129 of Companies Act 2013 vide Notification dated 23rd February 2018 of Ministry of Corporate
Affairs.

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 Annual Report 2018-19

Notes to Standalone Financial Statements 2018-19

NOTE 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT
Fair Value Measurements:

Financial Instruments by Categories, its carrying value and Fair value:

(Rs. in Lakhs)
Particulars As at March, 2019
Amortized cost FVTPL FVTOCI Carrying value Total fair value as
of March 31, 2019
Assets:
Investments in Equity 73.52 0 293.91 367.43 367.43
Instruments
Cash & Cash Equivalents 773.55 773.55 773.55
Bank Balances 40.07 0 0 40.07 40.07
Trade Receivable 1,61,424.09 0 0 1,61,424.09 1,61,424.09
Loans 51.77 0 0 51.77 51.77
Other Financial Assets 15,131.97 15,131.97 15,131.97
Liabilities:
Trade Payable 84,031.24 0 0 84,031.24 84,031.24
Borrowings 4,483.96 0 0 4,483.96 4,483.96
Other Financial Liabilities 17,306.43 0 0 17,306.43 17,306.43

(Rs. in Lakhs)
Particulars As at March, 2018
Amortized cost FVTPL FVTOCI Carrying value Total fair value as
of March 31, 2018
Assets:
Investments in Equity 73.52 0 291.70 365.22 365.22
Instruments
Cash & Cash Equivalents 2,579.00 0 0 2,579.00 2,579.00
Bank Balances 6,020.30 0 0 6,020.30 6,020.30
Trade Receivable 1,69,326.58 0 0 1,69,326.58 1,69,326.58
Loans 536.33 0 0 536.33 536.33
Other Financial Assets 59,054.99 0 0 59,054.99 59,054.99
Liabilities:
Trade Payable 96,785.45 0 0 96,785.45 96,785.45
Borrowings - 0 0 - -
Other Financial Liabilities 25,353.28 0 0 25,353.28 25,353.28

The carrying amounts of above Financial Assets and Liabilities are considered to be same (except in case of investments) as their
fair values due to the nature of the contractual obligations.

Fair Value Hierarchy

Management considers that, the carrying amount of those financial assets and financial liabilities that are not subsequently measured
at fair value in the Financial Statements approximate their transaction value. No financial instruments are recognized and measured

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Notes to Standalone Financial Statements 2018-19

at fair value for which fair values are determined using the judgments and estimates. The fair value of Financial Instruments referred
below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the
highest priority to quoted prices in active market for identical assets or liabilities. (Level-1 measurements) and lowest priority to
unobservable (Level-3 measurements). The categories used are as follows:

• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.

• Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data
(unobservable inputs).

The following table presents fair value hierarchy as at March 31, 2019:
(Rs. in Lakhs)
Particulars As at Fair value measurement at end of the reporting period/year
March 31, 2019 Level 1 Level 2 Level 3
Financial Assets
Investment in Equity Instruments 293.91 - - 293.91

The following table presents fair value hierarchy as at March 31, 2018:
(Rs. in Lakhs)
Particulars As at Fair value measurement at end of the reporting period/year
March 31, 2018 Level 1 Level 2 Level 3
Financial Assets
Investment in Equity Instruments 291.70 - - 291.70

Valuation Process:

For Level-3 financial instruments, the fair values have been determined by applying the Net Book value method except for
investments in Joint Venture where the value is amortized cost.

The carrying amounts of receivables, payables and cash and cash equivalents are considered to be same as their fair value due to
their contractual obligations.

For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Financial Risk Management:

The Company’s activities expose to a variety of financial risks viz.,market risk, credit risk and liquidity risk. The Company’s focus is
to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The
primary market risk to the Company is credit risk and liquidity risk. The Company’s exposure to credit risk is influenced mainly by,
dealings with Government and Government agencies being the top customers.

a. Management of Market Risk:

Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate financial assets as
fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to any interest rate risk.
Similarly, the Company does not have any Financial Instrument which is exposed to change in price.

b. Foreign Currency Risks:

The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with respect to the
US Dollars (USD), Euro (EUR) and other foreign currencies for the imports being made by the Company for execution of its
contracts.

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Notes to Standalone Financial Statements 2018-19

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on March 31, 2019 is
as follows:
(Rs. in Lakhs)
Particulars US Dollars Euro Other Currencies Total
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings - - - -
Trade Payables 7,757.60 1,665.72 243.71 9,667.03
Other Liabilities - - - -
Less: Currency Forwards - - - -
Net Exposure to foreign currency risk (liabilities) - - - -
Increase/ (Decrease) to profit before tax for changes of 5% against INR:
(Rs. in Lakhs)
Particulars US Dollars Euro Other Currencies Total
Strengthened (387.88) (83.29) (12.16) (483.35)
Weakened 387.88 83.29 12.16 483.35

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on March 31, 2018 is
as follows:
(Rs. in Lakhs)
Particulars US Dollars Euro Other Currencies Total
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings
Trade Payables 10,351.71 1,552.95 52.88 11,957.54
Other Liabilities
Less: Currency Forwards
Net Exposure to foreign currency risk (liabilities) 10,351.71 1,552.95 52.88 11,957.54

Increase/(Decrease) to profit before tax for changes of 5% against INR :

(Rs. in Lakhs)
Particulars US Dollars Euro Other Currencies Total
Strengthened (517.59) (77.65) (2.64) (597.88)
Weakened 517.59 77.65 2.64 597.88

c. Credit Risk:

“Credit risk is the risk of financial loss to the Company if a customer or a counter party fails to meet its contractual obligations.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables”.

The Company recognizes impairment loss on trade receivables using expected credit loss model which involves use of
simplified approach on the basis of historical credit loss experience as permitted under IND AS 109.
(Rs. in Lakhs)
Particulars As at As at
31st March, 2019 31st March, 2018
Opening Balance 11,367.94 16,699.88
Changes in allowance for expected credit loss
- Loss based on ECL 2,227.65 2,336.71
- Additional Provision (net of withdrawls) 1,200.76 (7,668.65)
- Write off of bad debts (6,213.92) 0.00
Closing Balance 8,582.43 11,367.94

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Notes to Standalone Financial Statements 2018-19

d. Liquidity Risk:

The Company`s liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity are cash and
cash equivalents, cash generated from operations and availability of cash credit and overdraft facilities to meet the obligations
as and when due.

Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during the normal
course of business. The Company maintains sufficient balance in cash and cash equivalents and working capital facilities to
meet the short term liquidity requirements.

The Company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and
committed credit lines.

The following table shows the maturity analysis of the Companies Financial Liabilities based on contractually agreed,
undiscounted cash flows as at the balance sheet date.
(Rs. in Lakhs)
Particulars Carrying amount <12 months >12 months Total
As on March 2019
Trade Payables 84,031.24 76,966.79 7,064.45 84,031.24
Other Financial Liabilities 17,306.43 11,918.43 5,388.00 17,306.43
As on March 31, 2018
Trade Payables 96,785.45 93,585.62 3,199.83 96,785.45
Other Financial Liabilities 25,353.28 11,985.42 13,367.86 25,353.28

NOTE 53: CORPORATE SOCIAL RESPONSIBILITY (CSR):

As per Section 135 of the Companies Act, 2013 and rules made there under on CSR Activities, the Company has incurred an amount
of Rs. 135.62 Lakhs (Previous year Rs. 139.02 Lakhs) towards Corporate Social Responsibility activities during the Financial Year
2018-19 and debited to Statement of Profit and Loss.

The amount of expenditure to be spent on CSR activities and financial details as per the Companies Act, 2013 for the F.Y 2018-19
are as under:
(Rs. in Lakhs)
S.No Particulars As at As at
31st March, 2019 31st March, 2018
1 Aggregate net profits of last three financial years as per Section 198 of the 24,872.63 23,034.46
Companies Act, 2013
2 Average of net profits 8,290.88 7,678.15
3 Earmarked percentage U/s 135 of the Companies Act, 2013 towards CSR 2% 2%
Activities
4 Amount to be spent towards CSR Activities for the F.Y 2018-19 165.82 153.56
5 Amount actually incurred on CSR Activities during F.Y 2018-19 135.62 139.02

As per Paragraph 17(b) of the Guidance Note on CSR issued by ICAI, the details of expenditure incurred by the Company on CSR
activities are as follows:
(Rs. in Lakhs)
S.No Particulars In Cash Yet to be paid in Total
Cash
(i) Construction/Acquisition of asset 43.46 4.28 47.74
(27.72) (15.46) (43.18)
(ii) Other than (i) above: 84.32 3.56 87.88
(95.84) (-) (95.84)

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Notes to Standalone Financial Statements 2018-19

NOTE 54: OTHERS:
i. The disclosure relating to transactions with Micro, Small and Medium Enterprises are given below:
(Rs. in Lakhs)
S.No Particulars As at As at
31st March, 2019 31st March, 2018
a) The principal amount and the interest due thereon (to be shown
separately) remaining unpaid to any supplier at the end of the each
accounting year.
(i) Principal 7,011.32 4,053.68
(ii) Interest 11.04 8.14
b) The amount of interest paid by the buyer in terms of Section 16 of the Nil Nil
Micro, Small and Medium Enterprises Development Act, 2006, along
with the amount of the payment made to the supplier beyond the
appointed day during each accounting year.
c) The amount of interest due and payable for the period of delay in Nil Nil
making payment(which have been paid but beyond the appointed day
during the year) but without adding the interest specified under the
Micro, Small and Medium Enterprises Development Act, 2006
d) The amount of interest accrued and remaining unpaid at the end of Nil Nil
each accounting year end
e) The amount of further interest remaining due and payable even in the 11.04 8.14
succeeding years, until such date when the interest dues above are
actually paid to the small enterprise, for the purpose of disallowance
of a deductible expenditure under Section 23 of the Micro, Small,
Medium enterprises Development Act, 2006.

ii. Materials received pending inspection and acceptance and materials dispatched by vendors for which title has been transferred
to the Company as per the terms of the contract which are in transit are considered as Raw materials-in-transit or Capital goods-
in-transit as the case may be and included in Inventories and Capital work-in-progress respectively.

iii. Inventories include material with sub contractors amounting to Rs. 32.02 Lakhs (previous year Rs. 7.90 Lakhs) and finished
goods amounting to Rs. 0.14 Lakhs (previous year Rs. Nil) sent on demonstration/exhibition /approval.

iv. Two MCV and one MCP against the order of M/s. Bharat Dynamics Limited on which sale was recognized has been retained in
the premises of the Company for more than 10 years at the request of the customer and an amount of Rs. 23.94 Lakhs is due
from the customer.

v. The Company requested its debtors and creditors to confirm the balances as at the end of half year in respect of trade payables,
trade receivables and advances directly to the Statutory Auditors.

vi. Recent Accounting Pronouncements :

a) IND AS-116 – “Leases” The Ministry of Corporate Affairs notified the standard IND AS-116 “Leases” amendment on 30th
March 2019 . Measurement under this standard will be effective from the year beginning on or after 1st April 2019.
The Company has no significant leases, however the Company is evaluating the effect of this standard on the Financial
Statements.

b) Ind AS 12 – “Income Taxes” - Appendix C Uncertainty over Income tax treatments: Ministry of Corporate affairs notified
this amendment on 30th March 2019, with effective date of adoption of Ind AS 12 Appendix C from 1st April 2019. The
Company is evaluating the effect of this standard on the financial statements.

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Notes to Standalone Financial Statements 2018-19

c) Amendment to Ind AS 12 - “Income Taxes”: Ministry of Corporate affairs notified this amendment on 30th March 2019
relating to income tax consequences on dividend and distribution tax. The Company is evaluating the effect of this standard
on the financial statements.

d) Amendment to Ind AS 19 – “Employee Benefits” – Plan amendment, curtailment and settlement: Ministry of Corporate affairs
notified this amendment on 30th March 2019,issued amendments to Ind AS 19 Employee Benefits. These amendments are
applicable to the accounting period beginning on 1st April 2019. The Company is evaluating the impact of this amendment
in the financial statements

vii. Previous year’s figures have been regrouped/reclassified/restated wherever necessary to confirm to the current year’s
presentation.

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 Annual Report 2018-19

Annexure – ‘E’
Independent Auditors’ Report
To
The Members
Electronics Corporation of India Limited
Hyderabad

Report on the Audit of the Standalone financial
statements
Qualified Opinion
We have audited the accompanying standalone financial
statements of Electronics Corporation of India Limited
(ECIL), (“the Company”), Hyderabad, which comprise the
Balance Sheet as at 31st March, 2019, the Statement of Profit
& Loss (including other comprehensive income), the Cash Flow
Statement and Statement of Changes in Equity for the year then
ended, and a summary of the significant accounting policies
and other explanatory information hereinafter referred to as
“the Standalone financial statements”.
The report is issued modifying our Audit Report dated
8th August 2019, so as to include the impact of C & AG
observations on the Stand alone Financial Statements.
In our opinion and to the best of our information and according
to the explanations given to us, except for the effects of
the matter described in the ‘Basis for Qualified Opinion’
paragraph, the aforesaid standalone financial statements give
the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India including the Ind AS,
of the state of affairs of the Company as at 31st March, 2019
and its financial performance including other comprehensive
income, its cash flows and the changes in equity for the year
ended on that date.
We conducted our audit of the standalone financial statements
in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under
those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone financial
statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”) together
with the ethical requirements that are relevant to our audit
of the standalone financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our qualified opinion on the standalone
financial statements.
Emphasis of Matters:
a) We draw attention to the matter in the Note No 2A to the
financial statements regarding immovable properties title
whereof are not yet conveyed in favour of the Company.
b) We also draw attention to the matter in the Note No 45 to
the financial statements regarding amounts utilized under
Grants received from Govt. of India, wherein Rs. 1585.39
Lakhs was accounted towards cost of material consumed
though as per the terms of the Grant the same were to be
utilized for creation of capital assets.

Basis for Qualified Opinion

Key Audit Matters
There is an under provision on long pending receivables for
Key audit matters are those matters that, in our professional
Rs. 1865.41 Lakhs resulting in over statement of Trade Receivables
judgment, were of most significant in our audit of the standalone
by Rs. 1865.41 Lakhs and Trade Payables are over stated by
financial statements of the current period. These matters were
Rs. 1738.92 Lakhs as these accounts have been classified as In-
addressed in the context of our audit of the standalone financial
operative. However, the net impact of the above on Profit & Loss
statements as a whole, and in forming our opinion thereon, and
Statement is not material.

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 Corporate Overview Statutory Reports Financial Statements
we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit
matters to be communicated in our report.
S. No. Key Audit Matter
1. Accuracy of recognition, measurement, presentation
and disclosure revenues and other related balances in
view adoption of Ind AS 115 “Revenue from Contracts
with Customers” Revenue accounting standard
applicable from 1st April 2018.
Application of the new revenue accounting standard from
the current financial year involves certain key judgements
relating to identification of distinct performance
obligations, determination of transaction price of
identified performance obligation, appropriateness of the
basis used to measure revenue recognized over a period,
and disclosures including presentations of balances in the
standalone financial statements.
Estimated efforts is a critical estimate to determine revenue,
as it requires consideration of progress of the contract,
efforts incurred till date, efforts required to complete the
remaining performance obligation.
Refer Note 31 & 42 to the standalone financial statements.
2. Evaluation of uncertain tax positions
The Company has material uncertain tax positions including
matters under dispute which involves significant judgment
to determine the possible outcome of these disputes.
Refer Notes 50 to the Standalone financial statements
Auditor’s Response
Principal Audit Procedures:
We assessed the Company’s internal process to identify the
impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and
operating effectiveness of internal controls and procedures
as follows:
• Evaluated the design of internal controls relating
to implementation of the new revenue accounting
standard.
• Selected a sample of existing continuing contracts and
new contracts, and tested the operating effectiveness
of the internal control, relating to identification of the
distinct performance obligations and determination of
transaction price.
• Tested the relevant information, accounting systems and
change relating to contracts and related information
used in recording and disclosing revenue in accordance
with new revenue accounting standard.
• Reviewed a sample of contracts to identify possible
delays in achieving milestones, which require change
in estimated efforts to complete the remaining
performance obligations.
• Performed analytical procedures and test of details for
reasonableness and other related material items.
• We draw attention to Note 42 (F) to notes to account
regarding the Company’s inability in providing the
information with regard to the impact on the line items
had the erstwhile IND AS - 11 and IND AS -18 have been
continued to adopted for the current year. However, the
same has no impact on the financial statements.
Principal Audit Procedures
Obtained details of completed tax assessments and
demands for the year ended March 31, 2019 from
management. We involved our internal experts to challenge
the management’s underlying assumptions in estimating
the tax provision and the possible outcome of the disputes.
Our internal experts also considered legal precedence and
other rulings in evaluating management’s position on these
uncertain tax positions. Additionally, we considered the effect
of new information in respect of uncertain tax positions as at
April 1, 2018 to evaluate whether any change was required
to management’s position on these uncertainties.
97

Information Other than the Standalone financial
statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the
other information. The other information comprises the
information included in the Chairman’s statement, Directors
Report and Corporate Governance Report but does not
include the standalone financial statements and our auditor’s
report thereon. The Chairman’s statement, Directors Report
and Corporate Governance Report are expected to be made
available to us after the date of this auditor’s report.
Our opinion on the standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the standalone financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the Chairman’s statement, Directors report and
Corporate Governance Report if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance.
Management’s Responsibility for the Standalone
financial statements:
The Company’s Board of Directors is responsible for the matters
stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and
fair view of the financial position, financial performance, total
comprehensive income, cash flows and changes in equity of the
Company in accordance with the IND AS and other accounting
principles generally accepted in India. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the
assets of the Company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate
implementation and maintenance of accounting policies; making
judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management
is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the
Company’s financial reporting process.
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Annual Report 2018-19
Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of
these standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
 Corporate Overview Statutory Reports Financial Statements
Materiality is the magnitude of misstatements in the standalone
financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements
may be influenced. We consider quantitative materiality and
qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the standalone
financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory
Requirements:
1. As required by the Companies (Auditor’s Report) Order,
2016 (“the Order”), issued by the Government of India
in terms of Section 143(11) of the Act, we give in the
Annexure-A a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by section 143(5) of the Act, with regard to the
directions issued by the Comptroller and Auditor General
of India, we report that:
a) The Company has an adequate and a satisfactory
system in place to process all the accounting
transactions though IT system.
b) According to the information and explanations given
to us and based on our examination of the records of
the Company, there has been no restructuring / waiver
/ write-off of debts / loans / interest etc. made by a
lender due to the Company’s inability to repay the loan.
c) In respect of Grants received from Government of
India, we draw attention to the matter to Note No 45
to the financial statements, wherein Rs. 1585.39 Lakhs
was accounted towards cost of material consumed
though as per the of terms the Grant the same were to
be utilized for creation of capital assets.
3. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit,;
b) In our opinion proper books of account as required by
law have been kept by the Company so far as it appears
from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, the
Cash Flow Statement and the Statement of Changes in
equity dealt with by this Report are in agreement with
the books of account and with the Returns received
from Branches not visited by us;
d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified under
Section 133 of the Act.
e) Being a Government Company, the Company is
exempted from the provisions of Section 164 (2) of
the Act regarding disqualification of Directors vide
Notification GSR-463(E), dated 5th June, 2015 issued by
the Government of India, Ministry of Corporate Affairs;
f) We give our report in Annexure –B with respect
to the adequacy of internal financial controls over
financial reporting of the Company and the operating
effectiveness of such controls;
g) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules 2014, in
our opinion and to the best of our information and
according to the explanations give to us:
i. The Company has disclosed the impact of pending
litigations on its financial position in its standalone
financial statements – Refer Note No. 50 (a) (i) to
the standalone financial statements;
ii. The Company has made provision, as required
under the applicable law and accounting
standards, for material foreseeable losses, on long
term contracts – Refer Notes 22, 24 and 29. The
Company doest not have derivative contracts.
iii. There are no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company.
For RAMANATHAM & RAO
Chartered Accountants
Firm Registration No.S-2934
L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 13th September, 2019
99
 Annual Report 2018-19

Annexure-A to the Independent Auditors’ Report

The annexure referred to in the Independent Auditors’ Report of even date to the Members of Electronics Corporation of
India Limited (ECIL) (“the Company”), on the Standalone financial statements for the year ended 31st March, 2019, we
report that:

(i) (a) The Company has maintained proper records showing to Directors, companies other parties covered under
full particulars, including quantitative details and provisions of section 185 and 186 of the Act. Accordingly
situation of fixed assets. paragraph 3(iv) of the Order is not applicable.

(b) According to the information and explanations given to
us and on the basis of our examination of the records of
the Company, the Company has a phased programme
of physical verification of its Fixed Assets once in three
years and accordingly external agencies have carried
out physical verification. In our opinion, the periodicity
of physical verification is reasonable having regard to the
size of the Company and the nature of its fixed assets. No
material discrepancies were noted on such verification.
(c) According to the information and explanations given
to us and on the basis of our examination of the
records of the Company, we state that the title deeds
of immovable properties are held in the name of the
Company except as specified in Note No.2A to the
standalone financial statements.
(ii) Physical verification of inventories except goods-in-transit
and stock lying with third parties, has been conducted
during the year by the in-house Internal Audit Department.
In our opinion the frequency of verification is reasonable.
The discrepancies noticed on verification between the
physical stocks and book records were not material and
they have been properly dealt with in the books of account.
(iii) During the year the Company has not granted any loans secured
or unsecured to companies, firms or other parties covered in the
register maintained under section 189 of the Act.
(iv) During the year Company has not given any loans,
made investments, given guarantees or given security
(v) During the year the Company has not accepted any
deposits from the public. Accordingly paragraph 3(v) of the
Order is not applicable.
(vi) We have broadly reviewed the books of account maintained
by the Company pursuant to the rules prescribed by the
Government of India for maintenance of cost records
under section 148(1) of the Act and are of the opinion that
prima facie, the prescribed accounts and records have
been made and maintained. However, we have not made
a detailed examination of the records.
(vii) (a) According to the information and explanations given
to us and on the basis of our examination of the
records of the Company, amounts deducted/accrued
in the books of account in respect of undisputed
applicable statutory dues including provident fund,
income tax, Goods & Services tax, sales tax, service tax,
duty of customs, duty of excise, value added tax, cess
and other material statutory dues have been regularly
deposited during the year by the Company with the
appropriate authorities.
According to the information and explanations given
to us, no undisputed amounts are payable in respect of
provident fund, income tax, Goods & Services tax, sales
tax, service tax, duty of customs, duty of excise, value
added tax, cess and other material statutory dues were
in arrears as at 31st March, 2019 for a period exceeding
six months from the date they become payable.

(b) According to the information and explanations given to us, the following dues of income tax, sales tax, service tax, duty of
excise, value added tax have not been deposited by the Company on account of disputes:
(Rs. in Lakhs)
Sl. Name of Nature Gross Amount Not Period to which the Forum where the
No Statute of the Disputed deposited deposited amount relates dispute is pending
Disputed Amount under due to
statutory Rs. In Lakhs protest / filing of
dues adjusted appeal
by tax
authorities
Rs. In Lakhs
1. The Income Income 424.37 - 424.37 1986-87 Central Board of
Tax Act, 1961 Tax Direct Taxes.
187.15 100.00 87.15 2002-03 High Court of
Andhra Pradesh

100
Corporate Overview Statutory Reports Financial Statements

(Rs. in Lakhs)
Sl. Name of Nature Gross Amount Not Period to which the Forum where the
No Statute of the Disputed deposited deposited amount relates dispute is pending
Disputed Amount under due to
statutory Rs. In Lakhs protest / filing of
dues adjusted appeal
by tax
authorities
Rs. In Lakhs
3,890.48 3266.63 623.85 2002-03 High Court of
Andhra Pradesh
71.77 - 71.77 2010-11 CPC Bangalore
35.85 - 35.85 2015-16 Assessing Officer
0.72 - 0.72 2015-16 CPC Bangalore
2. The Central Excise 82.26 - 82.26 2005-06 to 2007-08 High court, Hyderabad
Excise Act, Duty, 36.80 - 36.80 2008-09 High court, Hyderabad
1944 Interest & 25.26 - 25.26 2009-10 & 2010-11 High court, Hyderabad
Penalty 52.85 5.93 46.92 2011-12 to 2015-16 CESTAT, Hyderabad
9.36 - 9.36 2010-11 to 2013-14 CESTAT, Hyderabad
3.54 - 3.54 2009-10 to 2010-11 CESTAT, Hyderabad
93.73 - 93.73 2013-14 to 2014-15 CESTAT, Hyderabad
129.54 6.76 122.78 2010-11 to 2014-15 CESTAT, Hyderabad
69.93 4.58 65.35 2008-09 to 2014-15 CESTAT, Hyderabad
1,915.22 44.76 1,870.46 2000-01 to 2011-12 CESTAT, Hyderabad
73.66 3.90 69.76 2015-16 to 2017-18 Commissioner
(Appeals), Hyderabad
3. The Finance Service 27,523.12 - 27,523.12 2008-09 to 2011-12 High Court, Kolkata
Act, 1994 Tax 540.57 40.00 500.57 2007-08 to 2008-09 CESTAT, Chennai
4,842.16 91.54 4,750.62 2003-04 to 2012-13 CESTAT, Bangalore
2,882.72 486.62 2,396.10 2012-13 to 2013-14 CESTAT, Hyderabad
486.33 14.72 471.61 2012-13 to 2015-16 CESTAT, Hyderabad
516.04 - 516.04 2008-09 to 2016-17 Commissioner
(Appeals), Mumbai
4. Maharashtra Sales Tax 2.61 - 2.61 2010-11 Deputy
Value Added Commissioner
Tax Act, 2002 (Appeals), Mumbai
5. The Delhi Sales Tax 22.44 7.76 14.68 1993-94 Sales Tax Appellate
Value Added Tribunal, New Delhi.
Tax, 2004 0.20 - 0.20 2008-09 Commissioner
(Appeals), New Delhi
1,200.71 - 1,200.71 2009-10 & 2010-11 Commissioner
(Appeals), New Delhi
15.28 - 15.28 2010-11 Commissioner
(Appeals), New Delhi
57.50 - 57.50 2012-13 Commissioner
(Appeals), New Delhi
4.92 - 4.92 2011-12
2.54 - 2.54 2014-15
9.22 - 9.22 2015-16

101
 Annual Report 2018-19

(Rs. in Lakhs)
Sl. Name of Nature Gross Amount Not Period to which the Forum where the
No Statute of the Disputed deposited deposited amount relates dispute is pending
Disputed Amount under due to
statutory Rs. In Lakhs protest / filing of
dues adjusted appeal
by tax
authorities
Rs. In Lakhs
6. The Sales Tax 7.31 - 7.31 1997-98 High Court of
Telangana Andhra Pradesh
Value Added 654.04 647.83 6.21 2006-07 Sales Tax Appellate
Tax Act, 2005 Tribunal, Hyderabad
159.59 53.20 106.39 2006-07 Sales Tax Appellate
Tribunal, Hyderabad
399.43 236.12 163.30 2007-08 Sales Tax Appellate
Tribunal, Hyderabad
28.74 7.18 21.55 2007-08 Sales Tax Appellate
Tribunal, Hyderabad
361.51 266.88 94.63 2008-09 Sales Tax Appellate
Tribunal, Hyderabad
70.24 35.12 35.12 2009-10 Sales Tax Appellate
Tribunal, Hyderabad
908.49 227.12 681.37 2009-10 Sales Tax Appellate
Tribunal, Hyderabad
156.01 53.15 102.86 2011-12 Sales Tax Appellate
Tribunal, Hyderabad
72.97 24.86 48.11 2011-12 Appellate Deputy
Commissioner,
Telangana
61.94 7.74 54.20 2013-14 Appellate Deputy
Commissioner,
Telangana
2.03 0.25 1.78 2013-14 Appellate Deputy
Commissioner,
Telangana
83.96 52.48 31.48 2014-15 Appellate Deputy
Commissioner,
Telangana
Grand Total 48,175.11 5,685.13 42,489.96

(viii) In our opinion and according to the information and
explanations given to us, the Company has not defaulted
in repayment of dues to its bankers. The Company did not
have any outstanding dues to any financial institution or
debenture holders during the year.
(ix) The Company did not raise any money by way of initial
public offer or further public offer (including debt
instruments) during the year. During the year the Company
has applied the short term loans raised from banks for the
purpose for which they were raised.
(x) According to the information and explanations given to
us, no material fraud by the Company or on the Company
by its officers or employees has been noticed or reported
during the course of our audit.
(xi) Being a Government Company provisions of section
197 of the Act are not applicable to the Company as per
Notification GSR-463(E), dated 5th June, 2015 issued by
the Government of India, Ministry of Corporate Affairs.
Accordingly paragraph 3(xi) of the Order is not applicable
to the Company.

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 Corporate Overview Statutory Reports Financial Statements

(xii) Company is not a Nidhi Company; accordingly paragraph not entered into non-cash transactions with directors or
3(xii) of the Order is not applicable to the Company. persons connected with them.

(xiii) According to the information and explanations given to (xvi)

The Company is not required to be registered under
us and on the basis of our examination of the records of section 45-IA of the Reserve Bank of India Act, 1934.
the Company, in our opinion transactions with related
parties are in compliance with section 177 and 188 of the For RAMANATHAM & RAO
Act where applicable and details of such transactions have Chartered Accountants
been disclosed in the standalone financial statements as Firm Registration No.S-2934
required by the applicable accounting standards.

(xiv) During the year the Company has not made any preferential
allotment or private placement of share or fully or partly L Mahesh Kumar
convertible debentures during the year. Partner
Membership No.212851
(xv) According to the information and explanations given to us
and on the basis of our examination of the records of the Place: Hyderabad
Company, in our opinion during the year the Company has Date: 13th September, 2019.

103

Annexure-B to the Independent Auditors’ Report
Report on the Internal financial Controls of Section 143(3)(i) of the Act to the Members of Electronics Corporation of India
Limited (ECIL) (“the Company”), on the Standalone financial statements for the year ended 31st March, 2019.
We have audited the Internal financial Controls Over financial
Reporting of Electronics Corporation of India Limited (ECIL)
(“the Company”) as of 31 March 2019 in conjunction with our
audit of the standalone financial statements of the Company for
the year ended on that date.
Management’s Responsibility for Internal
financial Controls
The Company’s management is responsible for establishing
and maintaining internal financial controls based on the
internal control over financial reporting criteria established
by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of
Internal financial Controls over financial Reporting issued by
the Institute of Chartered Accountants of India (‘ICAI’). These
responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to Company’s
policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act,
2013 (“the Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal financial Controls Over
financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under
section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal
financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and whether such controls
operated effectively in all material respects. We have considered
the accounting manual, procurement manual and delegation of
powers for this purpose.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
104
Annual Report 2018-19
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the
risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks
of material misstatement of the standalone financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on
the Company’s internal financial controls system over financial
reporting.
Meaning of Internal financial Controls over
financial Reporting
A Company’s internal financial control over financial reporting is
a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
standalone financial statements for external purposes in
accordance with generally accepted accounting principles. A
Company’s internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the
Company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of standalone
financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the Company are being made only in accordance with
authorisations of management and directors of the Company;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or disposition
of the Company’s assets that could have a material effect on the
standalone financial statements.
Inherent Limitations of Internal financial Controls
Over financial Reporting
Because of the inherent limitations of internal financial controls
over financial reporting, including the possibility of collusion
or improper management override of controls, material
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
 Corporate Overview Statutory Reports Financial Statements
Qualified opinion
According to the information and explanations given to us
and based on our audit, the following material weakness has
been identified in the operating effectiveness of the Company’s
internal financial controls over financial reporting as at 31st
March, 2019:
Operating procedures in respect of reconciliation, obtaining
confirmations and adjustment of trade receivables, trade
payables, advances paid and advances received need to be
strengthened.
Accounting and reconciliation of balance pertaining to Indirect
tax credits needs to be improved.
A ‘material weakness’ is a deficiency or a combination of
deficiencies, in internal financial control over financial reporting,
such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim standalone
financial statements will not be prevented or detected on a
timely basis.
In our opinion, the Company has, in all material respects,
maintained adequate internal financial controls over financial
reporting as of 31st March 2019, except for the effects/
possible effects of the material weakness described above on
the achievement of the objectives of the control criteria, the
Company’s internal financial controls over financial reporting
were operating effectively as of 31st March, 2019.
We have considered the material weakness identified and
reported above in determining the nature, timing, and extent
of audit tests applied in our audit of the 31st March, 2019
standalone financial statements of the Company, and the
material weakness does not affect our opinion on the standalone
financial statements of the Company.
For RAMANATHAM & RAO
Chartered Accountants
Firm Registration No.S-2934
L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 13th September, 2019
105

Addendum to Directors’ Report
Company’s reply to qualification / observation of Statutory Auditors in the
Independent Auditors’ Report on Standalone Financial Statements 2018-19:
Auditors’ Qualification / Observation
There is an under provision on long pending receivables for
Rs. 1865.41 Lakhs resulting in over statement of Trade Receivables
by Rs. 1865.41 Lakhs and Trade Payables are over stated by
Rs. 1738.92 Lakhs as these accounts have been classified as In-
operative. However, the net impact of the above on Profit & Loss
Statement is not material.
Operating procedures in respect of reconciliation, obtaining
confirmations and adjustment of trade receivables, trade
payables, advances paid and advances received need to
be strengthened. Accounting and reconciliation of balance
pertaining to Indirect tax credits needs to be improved.
106
Annual Report 2018-19
Company’s Reply
The Company reviewed the status of long pending Trade
Receivables and necessary provisions were made in the
books as at the end of 31.03.2019. However, certain balances
in respect of long term projects are yet to be realized and
outstanding in the Debtors Ledger.
Inoperative trade payables for which payment
recommendations were not received from business divisions
and may have to be settled on receipt of claims from vendors
and are outstanding in the Creditors Ledger.
The pending balances will be reviewed and necessary
adjustment entries will be effected during the year 2019-20.
These being continuous in nature are reviewed periodically
and corrective actions are being taken. However, audit
observations are noted for further improvement.
Corporate Overview Statutory Reports Financial Statements

Annexure – ‘F’

107
 Annual Report 2018-19

108
Consolidated
Financial
Statements
 Annual Report 2018-19

Electronics Corporation of India Limited

Consolidated Balance Sheet as at March 31, 2019
(Rs. In Lakhs)

Particulars Note Figures as at the end Figures as at the end

No. of Current Reporting of Previous Reporting
Period March 31, 2019 Period March 31, 2018
ASSETS
1. Non-current assets
(a) Property, Plant and Equipment 2 16,973.94 15,479.93
(b) Capital work-in-progress 3 2,140.94 1,956.35
(c) Investment Property 4 107.05 109.94
(d) Other intangible assets 5 166.24 27.70
(e) Intangible Assets Under Development 6 - -
(f) Investments accounted for using the equity method 55A 3,952.85 3,578.74
(g) Financial Assets
(i) Investments 7 293.93 291.72
(ii) Trade Receivables 8 8,371.45 4,048.82
(iii) Loans 9 - -
(iv) Other Financial Assets 10 6,527.28 13,517.37
(h) Deferred tax Assets (net) 11 6,160.71 6,823.71
(i) Other non-current Assets 12 3,057.74 6,836.89
Total Non Current Assets 47,752.13 52,671.17
2. Current Assets
(a) Inventories 13 1,00,909.60 58,117.40
(b) Financial Assets
(i) Investments - -
(ii) Trade Receivables 14 1,53,052.64 1,65,277.76
(iii) Cash & Cash Equivalents 15 773.55 2,579.00
(iv) Bank Balances other than (iii) above 16 40.07 6,020.30
(v) Loans 17 51.77 536.33
(vi) Other Financial Assets 18 8,604.69 45,537.62
(c) Current Tax Assets - 3,888.70
(d) Other Current Assets 19 7,788.67 16,540.80
Total Current Assets 2,71,220.99 2,98,497.91
Total Assets 3,18,973.12 3,51,169.08
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 20 16,337.12 16,337.12
(b) Other Equity 21 90,115.09 72,104.93
Total Equity 1,06,452.21 88,442.05
LIABILITIES
1. Non-current liabilities
(a) Financial Liabilities
(i) Borrowings - -
(ii) Trade Payables 22
(A) Total Outstanding dues of Micro and Small enterprises - -
(B) Total Outstanding dues of Creditors other than Micro Enterprises and
7,064.45 3,199.83
Small Enterprises
(iii) Other Financial Liabilities 23 5,388.00 13,367.86
(b) Provisions 24 12,590.98 10,913.81
(c) Other non-current liabilities 25 20,653.56 13,803.66
Total Non-Current Liabilities 45,696.99 41,285.16
2. Current liabilities
(a) Financial Liabilities
(i) Borrowings 26 4,483.96 -
(ii) Trade payables 27
(A) Total Outstanding dues of Micro and Small enterprises 7,011.32 4,053.68
(B) Total Outstanding dues of Creditors other than Micro Enterprises and
69,955.47 89,531.94
Small Enterprises
(iii) Other Financial Liabilities 28 11,918.43 11,985.42
(b) Provisions 29 9,450.91 10,508.04
(c) Current Tax Liabilities 1,816.47 -
(d) Other current liabilities 30 62,187.46 1,05,362.89
Total Current Liabilities 1,66,824.02 2,21,441.97
Total Equity and Liabilities 3,18,973.12 3,51,169.08
Significant Accounting Policies and other Notes forming part of the Financial Statements

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

110
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Electronics Corporation of India Limited

Consolidated Statement of Profit and Loss for the year ended March 31, 2019
(Rs. In Lakhs)
Particulars Note Figures for the Figures for
No. Current reporting the Previous
period reporting period
March 31, 2019 March 31, 2018
INCOME
i) Revenue From Operations 31 2,71,662.02 1,40,816.22
ii) Other Income 32 2,452.68 4,108.06
Total Income 2,74,114.70 1,44,924.28
EXPENSES
i) Cost of material consumed 33 1,59,571.27 86,475.26
ii) Changes in inventories of finished goods, and work in progress 34 (2,655.15) (20,087.78)
iii) Excise Duty - 596.86
iv) Employees' Benefit Expenses 35 38,407.71 36,475.21
v) Finance Cost 36 2,273.57 2,024.04
vi) Depreciation & Amortization Expenses 37 3,776.42 2,713.28
vii) Other Expenses 38 36,055.54 28,345.09
Total Expenses 2,37,429.36 1,36,541.96
Share of the profit or loss of joint ventures accounted for using the equity method 55B 416.39 223.50
Profit before exceptional items and tax 37,101.73 8,605.82
Exceptional Items - -
Profit Before Tax 37,101.73 8,605.82
Tax Expenses
Current Tax 11,903.38 1,349.67
- Minimum Alternate Tax Credit Entitlement -
Tax relating to Earlier Years (112.64) 10.42
- Deferred Tax 662.23 1,768.58
Profit for the period from continuing operations 24,648.76 5,477.15
Profit/(loss) from discontinued operations -
Tax expense of discontinued operations -
Profit/(loss) from discontinued operations after tax -
I Profit for the Period 24,648.76 5,477.15
II Other Comprehensive Income 39
Items that will not be reclassified to profit or loss:
Changes in fair value of Equity Instruments 2.21 58.71
Income Tax relating to these items (0.77) (20.51)
Remeasurement of Define Benefit Plans (753.82) (2,339.41)
Income Tax relating to these items 263.38 809.67
Share of other comprehensive income of joint ventures accounted for using 55C
(20.12) (5.19)
the equity method
Other Comprehensive Income (509.12) (1,496.73)
Total Comprehensive Income for the period 24,139.63 3,980.42
Earnings per equity share :
No.of Equity shares of par value of Rs.1000 each 1633712 1633712
(1) Basic (in Rs.) 1508.76 335.26
(2) Diluted (in Rs.) 1508.76 335.26
Significant Accounting Policies and other Notes forming part of the Financial
Statements

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

111
 Annual Report 2018-19

Electronics Corporation of India Limited

Consolidated Cash Flow Statement for the year ended March 31, 2019
(Rs. In Lakhs)
Particulars Note Figures as at the Figures as at the
No. end of Current end of Previous
Reporting Period Reporting Period
March 31, 2,019 March 31, 2,018
A. CASH FLOW FROM OPERATING ACTIVITIES
NET PROFIT/(LOSS) BEFORE TAX 37,101.73 8,605.72
Adjustments for :
Depreciation 3,776.42 2,713.28
Interest expense 2,273.57 2,024.04
Interest received on Short Term Deposit Receipts (14.68) (895.55)
Expenditure on Corporate Social Responsibility Activities 135.62 139.02
Write off of Fixed Assets 17.85 1.70
Operating profit before Working Capital changes 43,290.51 12,588.21
Increase/Decrease Inventories (42,792.20) (29,955.64)
Increase/Decrease Trade Receivables 7,902.49 (31,956.97)
Increase/Decrease Loans and advances 484.56 (134.35)
Increase/Decrease Other Current Assets 6,614.66 (11,044.43)
Increase/Decrease Current Tax Liabilities (9,710.89) -
Increase/Decrease Current liabilities (36,471.34) 23,718.68
Increase/Decrease Provisions 1,246.10 7,267.25
Increase/Decrease Trade Payables (12,754.21) 14,623.86
Increase/Decrease Other Financial Laibilities (8,046.85) 14,797.34
Increase/Decrease Other Financial Assets 43,923.02 18,948.33
Increase/Decrease Bank Balances 5,978.85 20,721.27
Increase/Decrease Current Tax Assets 3,888.70 (4,306.43)
Cash generated from operations 3,553.40 35,267.12
Expenditure on Corporate Social Responsibility Activities (135.62) (139.02)
Grants received 5,415.35 6,803.62
Grants utilisation (5,269.54) (4,251.58)
Cash flow before extraordinary items 3,563.59 37,680.14
Extraordinary items
Net cash from operating activities 3,563.59 37,680.14
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets (5,423.93) (5,874.96)
Change in Value of Investments in Joint Venture (398.02) -
Fixed assets in transit and capital work in progress (184.59) 99.12
Interest received 16.06 1,866.25
Net cash from investing activities (5,990.50) (3,909.59)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from term loan from Banks 4,483.96 (28,334.60)
Interest expense (2,273.57) (2,024.04)
Dividend paid (1,317.98) (1,129.37)
Dividend tax paid (270.98) (229.91)
Net cash used in financing activities 621.43 (31,717.92)
Net increase in cash and cash equivalents (1,805.45) 2,052.63
Cash and cash equivalents (Opening Balance) 2,579.00 526.37
Cash and cash equivalents (Closing Balance) 773.55 2,579.00

(Rs. In Lakhs)
Particulars 1st April,2018 Cash Flow Foreign Exchange 31st March,2019
Movement
Borrowings - 4,483.96 - 4,483.96
D. Notes forming part of the Financial Statement.

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

112
 Corporate Overview Statutory Reports Financial Statements

Electronics Corporation of India Limited

Consolidated Statement of Changes in Equity for the year ended March 31, 2019
A. EQUITY SHARE CAPITAL
(Rs. In Lakhs)
Balance at the Beginning of the Changes in Equity Share capital during Balance at the End of the Reporting
Reporting Period as at April 01, 2017 the year Period as at March 31, 2018
16,337.12 0 16,337.12

(Rs. In Lakhs)
Balance at the Beginning of the Changes in Equity Share capital Balance at the End of the Reporting
Reporting Period as at April 01, 2018 during the year Period as at March 31, 2019
16,337.12 0 16,337.12

B. OTHER EQUITY
(Rs. In Lakhs)
Particulars Reserves and Surplus Other items of other Total
General Retained comprehensive
Reserve Earnings Income
Balance at the Beginning of the Reporting Period
2,056.46 69,755.54 222.90 72,034.90
as at April 01, 2017
Changes in accounting policy/ prior period errors - (2,445.41) (129.27) (2,574.68)
Restated balance at the beginning of the
2,056.46 67,310.13 93.63 69,460.22
Accounting Period as at April 01, 2017
Profit for the year - 3,965.79 - 3,965.79
Other comprehensive Income for the year - - 38.20 38.20
Dividend & Dividend Tax paid - (1,359.28) - (1,359.28)
Transfer to Retained Earnings - - - -
Balance at the end of the Reporting Period as at
2,056.46 69,916.64 131.83 72,104.93
March 31, 2018

(Rs. In Lakhs)
Particulars Reserves and Surplus Other items of other Total
General Retained comprehensive
Reserve Earnings Income
Balance at the Beginning of the Accounting Period
2,056.46 69,916.64 131.83 72,104.93
as at April 01, 2018
Changes in accounting policy/ prior period errors - (4,536.74) - (4,536.74)
Restated balance at the beginning of the
2,056.46 65,379.90 131.83 67,568.19
Accounting Period as at April 01, 2018
Profit for the year - 24,154.55 - 24,154.55
Other comprehensive income for the year - - (18.68) (18.68)
Dividend & Dividend Tax paid - (1,588.96) - (1,588.96)
Transfer to retained earnings - - - -
Balance at the end of the Accounting Period as 2,056.46 87,945.49 113.15 90,115.09
at March 31, 2019

As per our report of even date attached

For and on behalf of the Board For RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) Dr. S MERVIN ALEXANDER MSRS PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director Company Secretary Partner
M.No.:212851
Place : Hyderabad
Date : 08-08-2019

113
 Annual Report 2018-19

Notes to Consolidated Financial Statements 2018-19

Note 1: SIGNIFICANT ACCOUNTING POLICIES (Rs. In Lakhs)

1. CORPORATE INFORMATION: Name Country of Percentage of holding

of the Incorporation For the For the
Electronics Corporation of India Limited (ECIL)(the parent Company Current previous
Company) is a Public Company domiciled in India, reporting reporting
incorporated under the provisions of The Companies Act period period
applicable in India. The registered office of the Company is
ECIL -
located at Hyderabad, Telangana, India.
Rapiscan India 49% 49%
The Company is a Public sector enterprise under the Limited
administrative Control of the Department of Atomic
When a group entity transacts with a joint venture of the
Energy, Government of India. ECIL & the Joint controlled
Group,profits and losses resulting from the transactions
entity (together the “Group”) manufactures and supplies
with the associate or joint venture are recognised in the
electronic equipments and allied security systems
Group’s consolidated financial statements only to the
to Nuclear, Defence, Aerospace, Telecom, IT and
extent of interests in the associate or joint venture that are
E-Governance etc., and renders related services.
related to the Group.
2. BASIS OF ACCOUNTING:
3. USE OF ESTIMATES:
The Consolidated financial statements of the Group have
The preparation of Group financial statements in conformity
been prepared in accordance with Indian Accounting
with IND AS requires management to make estimates,
Standards (here in after referred as IND AS) as notified
judgments and assumptions (including revisions if any).
under section 133 of the Companies Act, 2013 read with
These estimates, judgments and assumptions affect the
Rule 3 of the Companies (Indian Accounting Standards)
application of accounting policies and reported amounts
Rules, 2015 and the Companies (Indian Accounting
of assets and liabilities, the disclosure of contingent assets
Standards) Amendment Rules, 2016.The consolidated
and liabilities at the date of financial statements and
financial statements have been prepared on accrual basis
the reported amounts of revenue and expenses during
under the historical cost convention unless otherwise
the period.
stated in the accounting policies.
Appropriate changes in the estimates are made as
Principles of consolidation
management becomes aware of changes in circumstances.
The Consolidated financial statements relate to Electronics Changes in the estimates are reflected in the financial
Corporation of India Limited (ECIL) (the “Company’’), statements in the period in which changes are made.
its jointly controlled entity. The consolidated financial
4. BASIS OF MEASUREMENT:
statements have been prepared on the following:
The Consolidated financial statements have been prepared
(a) The financial statements of the jointly controlled
on a historical cost basis except for certain assets and
entities used in the consolidation are drawn up to the
liabilities which have been measured at fair value as per
same reporting date as that of the Company i.e., year
IND AS.
ending 31st March.
The Consolidated financial statements are presented in
(b) Share of profit/loss,assets and liabilities in the jointly
Indian Rupees (INR) being the functional currency of the
controlled entity,have been consolidated on equity
Group, rounded off to the nearest Lakh with two decimals,
method by recognising profit proportionate to the
except otherwise stated.
extent of the Group’s equity interest in such entity
as per Ind AS 28 Financial Reporting of Interests in 5. RECOGNITION OF REVENUE:
Joint Ventures.
(i) Revenue from sale of goods and services is recognized
Following jointly controlled entity have been considered in net of variable consideration and exclusive of Goods
the preparation of the consolidated financial statements and Service Tax (GST).

114
 Corporate Overview Statutory Reports Financial Statements
Notes to Consolidated Financial Statements 2018-19
(ii) In respect of contracts with customers, Revenue is
recognized as follows:
(A) For every contract entered into by the Company
with the customer, at the inception of the contract,
if the Company promises to the customer to satisfy
the performance obligations over a period of time,
the Company recognizes revenue over a period
of time to the extent of units delivered /value of
the goods and services, as per the terms of the
contract, for which the control has been transferred
to the customer.
(B) At the inception of the contract, if the performance
obligations are not going to be performed over a
period of time, but at a point of time, then
a) Revenue is recognized on dispatch if there is
reasonable expectation of the goods reaching
the destination within the accounting period,
in the case of FOR destination cases.
b) Revenue is recognized when the goods are
handed over to the carrier for transmission to
the customer when the control of goods have
already been passed on to the customer, in the
case of Ex-works contracts.
(C) In case of Contracts where contract price is
pending for finalization, revenue is recognized
at the provisional price as per the terms of the
contract.
(D) Revenue is recognized on transfer of goods to the
Bonded warehouse (for Defence) after receipt of
the bonding certificate in line with the business
practice.
(E) In respect of composite contracts, involving supply
and services where price breakup is available,
Revenue in respect of supplies are recognized
either at a point of time or over a period of time
as the case may be subject to the control of goods
passed on to the customer, and the service income
is recognized based on completion of services.
(F) In respect of continuous service contracts,
Revenue is accrued and recognized over the
contract period.
(G) Interest income is recognized using the effective
interest rate method.
(H) Income from dividend is recognized when the
right to receive the payment is established.
6. INVENTORY:
i. Raw materials, stores and spares and components
are valued at cost (excluding GST) by using weighted
average cost formula or Net Realisable Value (NRV)
whichever is lower. Inventories which are non-moving
for more than 3 years and which may not be required
for further use are suitably provided and in the case of
inventories which are less than 3 years old, provision is
made as assessed technically.
ii. Work in Progress of products / projects is valued at
Factory Cost or NRV whichever is lower and such
valuation is based on technical estimate as to the stage
of progress.
iii. Finished goods are valued at “factory cost” or “NRV”
whichever is lower.
iv. Scrap is valued at “NRV”.
v. “Factory cost” comprises Direct material, Direct labour,
Direct expenses and factory overheads.
vi. “NRV” is the contracted selling price in the ordinary
course of business less the estimated cost of completion
and estimated costs necessary to make the sale.
7. PROPERTY, PLANT & EQUIPMENT:
A. a) Property, plant & equipment are stated at
cost net of eligible Input credits of Taxes and
Dutieswhereverapplicableand subsequently at
cost less depreciation and impairment losses
if any.
b) Equipment manufactured for internal use is
capitalized at Factory cost. Factory cost comprises
Direct Material, Direct labour, Direct expenses and
factory overheads.
c) Assets are depreciated on straight line method
and depreciation is charged on monthly pro rata
basis for the additions / deletions during the year.
The useful life of the assets adopted are as per
Schedule II to the Companies Act, 2013, except in
the following casesbased on technical advice:
(i) Where the cost of the asset is Rs.10, 000/- or
below, depreciation is at 100% of the cost
retaining Re.1/- in the net block.
(ii) Computer Systems acquired by Computer
Education Division (CED) and systems sent on
hire or for demonstration or for use outside
factory is depreciated @50%.
115

Notes to Consolidated Financial Statements 2018-19
(iii) Assets acquired by Electronic Manufacturing
Services Division (EMSD)under the account
heads of (i) Plant and Machinery and (ii)
Electronic Testing and Measuring Equipment
which are depreciated at a rate of 50%.Other
account heads grouped under the head of
Plant and Machinery (referred in note on
Property, Plant and Equipment) are continued
to be depreciated as per the useful life
specified under Schedule II of Companies Act.
(iv)
Structures, erections, Warehouses, Electrical
Installations and other similar enabling works
at projects / sites are depreciated considering
the tenure of the contracts.
(v) Assets acquired out of Grants are amortized
over a period of 3years.
B. IMPAIRMENT OF ASSETS:
As at the end of each Balance Sheet date, the carrying
amount of assets is assessed as to whether there is any
indication of impairment. If the estimated recoverable
amount is found less than its carrying amount, the
impairment loss is recognized and assets are written
down to their recoverable amount.
C. INTANGIBLE ASSETS:
a) The cost of software (which is not an integral part
of the related hardware) acquired for internal use,
together with outsourced cost of development
/ implementation, resulting in significant future
economic benefits is recognized as an intangible
asset in the books of accounts when the same is
ready for use and will be amortized on straight line
method over a period to be specified as per the
technical evaluations from the year the asset is put
to use.
Intangible assets that are not yet ready for
their intended use as at the Balance sheet
date are classified as “Intangible Assets under
Development”.
b) Technical- Know-how charges incurred for new
product lines or up-gradations which generate
future economic benefits, such expenditure is
amortised, based on technical assessment over the
life cycle of the Project not exceeding 5 years.
8. PREPAID EXPENSES:
Prepaid expenses of items of Rs.1,00,000 and below are
charged to natural heads of accounts.
116
Annual Report 2018-19
9. FOREIGN CURRENCY TRANSACTIONS:
Transactions in foreign currencies are accounted at functional
currency, at the exchange rate prevailing on the date of
transactions. Gains / losses arising out of the fluctuations in
the exchange rate between functional currency and foreign
currency are recognized in the Statement of Profit and Loss
in the period in which they arise.
The fluctuations between foreign currency and functional
currency relating to monetary items at the year ending
are accounted as gains / losses in the Statement of Profit
and Loss.
10. GOVERNMENT GRANTS:
Government grants are recognized where there is a
reasonable assurance that the grant will be received and all
the attached conditions will be complied with.
Grants relating to income are reduced from the related
expense.
Grants relating to asset is disclosed in Balance Sheet as
deferred income. The deferred income is recognized
in profit or loss on a systematic basis over 3 years as per
technical advice.
11. RESEARCH & DEVELOPMENT EXPENDITURE:
Research and development expenditure of revenue nature
is charged off to revenue when incurred. Assets acquired
for research purposes are capitalised.
12. EMPLOYEE BENEFITS:
The Group provides for Gratuity, a Defined Benefit
retirement plan covering eligible employees. The gratuity
plan provides a lump-sum payment to vested employees
at retirement, death or termination of employment of an
amount based on the respective employee’s salary and
the tenure of employment with the Group. Liabilities with
regard to Gratuity plan are determined by the actuarial
valuation at each balance sheet date. Actuarial gain/loss is
recognized in the statement of profit and loss.
Retirement benefit in the form of provident fund is a Defined
Contribution scheme. Contribution made to provident fund
trust is accounted on accrual basis.
Leave encashment liabilities are made on the basis of
actuarial valuations as at the end of the year and actuarial
gain/loss are recognized in the statement of Profit and Loss.
13. BORROWING COSTS:
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets are
 Corporate Overview Statutory Reports Financial Statements
Notes to Consolidated Financial Statements 2018-19
capitalised till the month in which the asset is ready to use
as part of the cost of that asset. Other borrowing costs are
recognised as an expense in the period in which these
are incurred.
14. INCOME TAXES:
Income tax expense represents the sum of current tax
payable and deferred tax.
Current Tax: The tax currently payable is based on the
current year taxable profit for the year. The current tax is
calculated using the tax rates that have been enacted or
substantively enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the Balance
Sheet method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that it is
probable that the taxable profits will be available against
which those deductible temporary differences can be
utilised. Deferred tax is calculated using the tax rates that
have been enacted or substantively enacted at the end of
the reporting period.
The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilised.
15. INVESTMENTS:
Investments are valued at Fair Value through Other
Comprehensive Income (FVOCI) under Net Book
value method.
16. LEASES:
Assets given on operating lease are capitalized and related
lease income is recognized as income, over the lease
period, on a straight line basis.
Operating lease payments are recognised as expense on a
straight line basis over the lease term.
In respect of lease and sub-lease arrangement, the lease
rental received and payable are recognized as income and
expenditure respectively in the Statement of Profit and Loss
on accrual basis.
17. LIQUIDATED DAMAGES:
Claims for liquidated damages against the Group are
considered as and when contractually due except those
which are considered by Management as negotiable
and not payable. However, the same are treated as
Contingent Liability.
Revenue and Trade Receivables are accounted net
off Liquidated Damages considered as accrued on
executed contracts.
18.
PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS:
Provisions are recognized in the books when there is a
present obligation as a result of past events involving
substantial degree of estimation and it is probable that
there will be an outflow of economic resources. Show
cause notices issued by Government Authorities where
the probability of outflow of economic resources is remote
are not considered as obligations. When the demands are
raised against show-cause notices and are disputed by the
Group, these are treated as disputed obligations along with
other contingent liabilities. Such contingent liabilities are
not recognized but are disclosed in the notes. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
19. EARNINGS PER SHARE:
The Group presents basic and diluted earnings per
share (“EPS”) data for its equity shares.Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders by the weighted average number of
equity shares outstanding during the year. Diluted EPS is
determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number
of equity shares outstanding for the effects of all dilutive
potential equity shares.
20. FINANCIAL INSTRUMENTS:
A. Non-Derivative Financial Instruments:
Non-derivative financial instruments are recognized
initially at fair value when the Company becomes a
party to the contractual provisions of the instrument.
Non-derivative financial instruments consists of
a) Financial Assets which includes trade receivables,
Contract Assets and eligible current and non-
current assets are subsequently measured at
amortised cost.
b) Financial Liabilities includes short term and long
term borrowings, bank overdrafts, trade payables
and eligible current and non-current liabilitieswhich
are subsequently measured at amortised cost.
117

Notes to Consolidated Financial Statements 2018-19
B. Cash and cash equivalents:
Cash and cash equivalents include all cash balances
and short-term highly liquid investments with an
original maturity of three months or less that are readily
convertible into known amounts of cash which are
subject to insignificant risk of change in value.
Bank overdraft, if any is shown within borrowings in
current liabilities in the Balance Sheet.
C. Trade receivables:
Receivables are recognized initially at fair value, which
is the transaction value. The Company recognizes
impairment loss on Trade Receivables using expected
credit loss model which involves use of simplified
approach on the basis of historical credit loss
experience and is recognized through Statement of
Profit and Loss.
118
Annual Report 2018-19
Additional provision is made on review if there is an
indication that those may be impaired, consequent loss
is recognized through Statement of Profit and Loss.
D. Trade and other payables:
Liabilities are recognized for amounts to be paid in
future for goods or services received, whether billed
by the supplier or not.
21. EVENTS AFTER THE REPORTING PERIOD:
Adjusting events are events that provide further evidence
of condition that existed at the end of the reporting period.
The financial statements are adjusted for such events
before authorization for issue.
22. WARRANTY PROVISIONS:
Provision for warranty is recognized on revenue from
contracts with customers on sale of products based on
historical experience.
 Notes to Consolidated Financial Statements 2018-19
Note 2 : Property, Plant & Equipment
The changes in the Carrying value of the Property,Plant and Equipment for the year ended March 31, 2019 are as follows:
(Rs. In Lakhs)
Corporate Overview

S. Particulars Gross Carrying Value as at 31.03.2019 Accumulated Depreciation as at 31.03.2019 Net Block
No As at Additions & Deductions & Total As at Upto Charged to Deductions & Total As at As at
01.04.2018 Adj.During the Adj.During the 31.03.2019 31.03.2018 Statement of Adj.During the 31.03.2019 31.03.2019
Year Year Profit & Loss Year
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 4,025.60 637.44 0.01 4,663.03 559.30 248.17 - 807.47 3,855.56
3 Plant & Equipment 10,569.01 2,734.30 197.81 13,105.50 3,660.10 2,317.42 197.78 5,779.74 7,325.76
4 Furniture & Fixtures 4,504.43 861.75 2.03 5,364.15 1,388.41 617.64 0.84 2,005.21 3,358.94
5 Vehicles 87.82 15.45 0.00 103.27 39.53 14.19 - 53.72 49.55
6 Office Equipment 911.77 295.23 1.04 1,205.96 541.48 202.15 1.08 742.55 463.40
7 Others: - -
Statutory Reports

a) Research &
Development-Plant & 1,502.01 722.73 23.89 2,200.85 839.83 356.60 6.21 1,190.22 1,010.64
Machinery
b) Computer Systems
169.95 - - 169.95 169.95 - - 169.95 -0.00
hired out to Customers
c) Assets held at
Customer site (BOOT/ 24.96 - - 24.96 24.96 - - 24.96 0.00
BOMT)
d) Water Supply 17.90 2.64 0.80 19.74 2.70 1.23 0.80 3.13 16.61
e) Sewarage System 29.57 2.48 1.34 30.70 6.65 1.73 1.34 7.04 23.67
Total 22,712.83 5,272.02 226.92 27,757.93 7,232.91 3,759.13 208.05 10,783.99 16,973.94
Financial Statements

The changes in the Carrying value of the Property, Plant and Equipment for the year ended March 31, 2018 are as follows:
(Rs. In Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block
No As at Additions & Deductions & Total As at Upto Charged to Deductions & Total As at As at
01.04.2017 Adj.During the Adj.During the 31.03.2018 31.03.2017 Statement of Adj.During the 31.03.2018 31.03.2018
Year Year Profit & Loss Year
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 3,116.34 906.76 (2.50) 4,025.60 332.09 224.71 (2.50) 559.30 3,466.30
3 Plant & Equipment 7,733.43 2,839.12 3.54 10,569.01 2,203.18 1,458.88 1.96 3,660.10 6,908.91
4 Furniture & Fixtures 3,026.98 1,478.07 0.62 4,504.43 797.69 591.20 0.48 1,388.41 3,116.02
5 Vehicles 85.20 2.62 - 87.82 25.65 13.88 - 39.53 48.29
6 Office Equipment 578.71 335.76 2.70 911.77 408.50 135.49 2.51 541.48 370.29
7 Others:
a) Research &
Development-Plant & 1,259.50 249.52 7.01 1,502.01 577.80 276.83 14.80 839.83 662.18
Machinery
b) Computer Systems
169.95 - - 169.95 169.95 - - 169.95 -
hired out to Customers
c) Assets held at Customer
24.97 - 0.01 24.96 24.97 - 0.01 24.96 -
site (BOOT/BOMT)
d) Water Supply 16.70 1.20 - 17.90 1.61 1.09 - 2.70 15.20
e) Sewarage System 10.04 19.54 0.01 29.57 5.26 1.39 - 6.65 22.92
Total 16,891.63 5,832.59 11.39 22,712.83 4,546.70 2,703.47 17.26 7,232.91 15,479.93

119

Notes to Consolidated Financial Statements 2018-19
Note : 2 A
1. a) The Department of Atomic Energy (DAE) has made
Deed of Grant in favour of the Company granting Acres
278-05 Guntas of land free of cost in Keesara and Uppal
Mandals, Rangareddy District. The land was granted for
the purpose for which ECIL was incorporated, provided
that no part of the Land shall be sold or brought to sale.
Out of the grant of Acres 278-05 Guntas, the Company
was conveyed Acres 229-01 Guntas and the same
were mutated in favour of the Company in the revenue
records.
b) Out of grant of Acres 278-05 Guntas DAE has identified
Acres 31-10 Guntas of lands in S. Nos. 223/7, 288,
711 and 24. However the land is yet to be transferred
and mutated in the revenue records in favour of the
Company. The Company is in possession of this land.
c) Out of grant of Acres 278-05 Guntas balance Acres 17-
34 Guntas of land is neither identified nor mutated in
favour of the Company.
d) The Company is in excess possession of Acres 20-
30 Guntas of land under Survey No.223/09, 223/10,
223/13 in Kapra Village, Keesara Mandal, Rangareddy
District. This land was transferred by State Government
to DAE. However, the land is not yet conveyed in favour
of the Company.
2. The Company has purchased Acres 2-11 Guntas of land
at Moula-Ali, Hyderabad from Andhra Pradesh Industrial
Infrastructure Corporation Ltd (APIIC). APIIC agreed for
exchange of this land with a land admeasuring Acres 2-65
Guntas in Moula-Ali. In the process the Company will have
title for an additional land of Acres 0-533 Guntas for which
the Company has paid additional consideration of Rs.
1,65,103/-. Conveyance in respect of exchange properties
in favour of the Company from APIIC is not yet completed.
3. The Company acquired 60 residential quarters at DAE
Colony, D-Sector, each quarter admeasuring about 570 Sft.
in the year 1991-92 at cost of Rs. 81,80,000 from the DAE.
These quarters are not conveyed to the Company, however,
the Company is in possession of these quarters.
4. The DAE vide letter No.5/10(5)/2000-PSU/Vol.III/61, dated
10.01.2002 conveyed the approval of the President of India
for transfer of ownership of land admeasuring 2773.50 Sq.
yards and Buildings for its office situated at Prabhadevi,
Mumbai free of cost to the Company. The mutation of the
property is not yet completed
5. The Company was allotted following flats in Local Shopping
Complex at Naraina Block, New Delhi for its office premises
120
Annual Report 2018-19
by the Delhi Development Authority (DDA) in the year
1996. DDA has issued Allotment Letters and Possession
Slips for these flats in favour of the Company. The Company
is in possession of these properties. However, Sale Deeds
or other documents are not executed in respect of these
properties in favour of the Company.
a) Flat bearing No. B-7, B-Block, 2nd Floor, admeasuring
327-55 Sq. meters for a consideration of Rs.
1,03,48,937/-.
b) Flat bearing No. D-15, D block, 3rd Floor, admeasuring
270-80 Sq. meters for a consideration of Rs. 93,31,300/.
6. The Company has entered into Articles of Agreement on
10.12.1976 with Deepak Builders Pvt. Ltd., for purchase
of 2 shops bearing Nos. 37 and 38 at Vishal Co-operative
Housing Society Ltd., M.V. Road, Andheri (East), Mumbai
admeasuring 567 Sq.ft. for a consideration of Rs. 1,41,000/-
. The Sale Deed in respect of this property is not yet
executed in favour of the Company.
7. The Company entered into Agreements of Sale with three
partnership firms viz., M/s Haria Enterprises, M/s Package
Foods and M/s Jayesh Trading Company on 11.11.1974,
for the purchase of Shop Nos.1 to 3, Parasmani, M.G.Road,
Naupada, Thane, Mumbai admeasuring 1225 Sq. ft. for a
consideration of Rs. 2,09,950/-. The registered agreements
of sale are executed in favour of the Company. The Sale
deed is not yet executed in the favour of the Company.
8. The Company entered into a Registered Agreement of Sale
with Maganlal Popatlal Charity & Sarvodaya Hospital Trust
for purchase of 10 residential flats at Chembur, Mumbai
bearing No.B-3, 4, 7, 8, 11, 12, 16 & C-5 to C-7 in a total
area of 5,585 Sq. ft. in Survey No.S-470 to 479 in the year
1982-83 for the purpose of guest house and residence of
employees, for a consideration of Rs. 25,13,250/-. The Sale
Deed is not yet executed in favour of the Company.
Note : 2 B
1. The Property, Plant and Equipment additions made
during the year include assets acquired out of Grants by
DAE, Government of India amounting to Rs. 644.78 Lakhs
(previous year Rs. 218.85 Lakhs)and assets funded by BARC
amounting to Rs.2111.75 Lakhs (Previous year Rs. 2716.65
Lakhs) aggregating to Rs. 2756.53 Lakhs (previous year
Rs.2935.50 Lakhs ).
2. Obsolete assets having a net value of Rs. 17.85 Lakhs
(previous year Rs. 1.71 Lakhs) are reduced from Carrying
Gross Block. Aggregate Gross Value of all these assets as at
March 31, 2019 is Rs. 223.64 Lakhs (previous Year Rs. 4.88
Lakhs).
 Corporate Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements 2018-19

3. Out of the total tool cost of Rs.340.65 Lakhs, procured for
execution of order received from Election Commission of
India during the year 2013-14 for manufacture of EVMs,
an amount of Rs. 279 Lakhs was amortized upto the year
2017-18 leaving a balance of Rs.61.65 Lakhs, which was
amortized during the year 2018-19 (previous year –Nil).
4. Based on the review of the tangible assets deployed in the
Company, the Technical Committee felt that though some
part of the asset is significant to total cost of the asset, the
useful life of such parts are not different from the useful
life of the remaining part(s), as all assets are in the nature
of electronic equipment where the useful life of intrinsic
parts of the equipment are almost uniform. Accordingly,
uniform useful lives have been adopted for fixed assets for
computation of depreciation.

Note 3 : Capital Work-in-Progress

The changes in the Capital Work-in-Progress for the year ended March 31, 2019 are as follows:
(Rs. In Lakhs)
S. Particulars Carrying Value as at 31.03.2019
No As at Additions Adjustments/ Value as at
01.04.2018 during the year Deductions 31.03.2019
during the year
1 Capital Equipment-in-transit 739.49 352.06 749.04 342.51
2 Capital Work-in-progress 1,216.86 1,643.21 1,061.64 1,798.43
Total 1,956.35 1,995.27 1,810.68 2,140.94

The changes in the Capital Work-in-Progress for the year ended March 31, 2018 are as follows:
(Rs. In Lakhs)
S. Particulars Carrying Value as at 31.03.2018
No As at Additions Adjustments/ Value as at
01.04.2017 during the year Deductions 31.03.2018
during the year
1 Capital Equipment-in-transit 177.90 951.57 389.98 739.49
2 Capital Work-in-progress 1,877.57 1,010.39 1,617.08 1,216.86
Total 2,055.47 1,961.94 2,061.06 1,956.35

Note 4 : Investment Property

The changes in the Carrying value of the Investment Property for the year ended March 31, 2019 are as follows:
(Rs. In Lakhs)

S. Particulars Carrying Value as at 31.03.2019 Depreciation as at 31.03.2019 Net Block

No As at Additions & Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2018 Adj.During & Adj.During 31.03.2019 31.03.2018 Statement of & Adj.During 31.03.2019 31.03.2019
the Year the Year Profit & Loss the Year
1 Buildings
118.61 - - 118.61 8.67 2.89 - 11.56 107.05
(Leased)
Total 118.61 - - 118.61 8.67 2.89 - 11.56 107.05

The changes in the Carrying value of the Investment Property for the year ended March 31, 2018 are as follows:
(Rs. In Lakhs)

S. Particulars Carrying Value as at 31.03.2018 Depreciation as at 31.03.2018 Net Block

No As at Additions & Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2017 Adj.During & Adj.During 31.03.2018 31.03.2017 Statement of & Adj.During 31.03.2018 31.03.2018
the Year the Year Profit & Loss the Year
1 Buildings
118.61 - - 118.61 5.78 2.89 - 8.67 109.94
(Leased)
Total 118.61 - - 118.61 5.78 2.89 - 8.67 109.94

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Notes to Consolidated Financial Statements 2018-19

Note 5 : Other Intangible Assets
The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2019 are as follows:
(Rs. In Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2019 Accumulated Depreciation as at 31.03.2019 Net Block
No As at Additions & Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2018 Adj.During & Adj.During 31.03.2019 31.03.2018 Statement of & Adj.During 31.03.2019 31.03.2019
the Year the Year Profit & Loss the Year
1 Technical
649.62 - - 649.62 622.72 6.72 - 629.44 20.18
Knowhow
2 Software 1.18 152.94 - 154.12 0.38 7.68 - 8.06 146.06
Total 650.80 152.94 - 803.74 623.10 14.40 - 637.50 166.24

The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2018 are as follows:
(Rs. In Lakhs)

S. Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block
No As at Additions & Deductions Total As at Upto Charged to Deductions Total As at As at
01.04.2017 Adj.During & Adj.During 31.03.2018 31.03.2017 Statement of & Adj.During 31.03.2018 31.03.2018
the Year the Year Profit & Loss the Year

1 Technical 616.00 33.62 - 649.62 616.00 6.72 - 622.72 26.90

Knowhow
2 Software 0.18 1.00 1.18 0.18 0.20 - 0.38 0.80
Total 616.18 34.62 - 650.80 616.18 6.92 - 623.10 27.70

Note 6: Intangible Assets under Development

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Enterprise Resource Planning Licenses and Implementation 926.75 926.75
Less: Provision for Impairment (926.75) (926.75)
Total - -

Note 7: Investments Non-Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Investments in Equity Instruments (UnQuoted-Considered at Fair Value)
1. Investment in M/s Andhra Pradesh Gas Power Corporation limited 7,28,900 Equity
293.91 291.70
Shares of Rs.10/- each fully paid including 1,92,960 bonus shares of Rs.10/-each
2. Investment in ECIL Employees Consumer Co-operative Society Limited, 250 shares
0.02 0.02
of Rs.10/- each fully paid
Total 293.93 291.72

Note 8: Trade Receivables Non-Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good 8,371.45 4,048.82
Doubtful 8,582.43 11,367.94
Allowances for doubtful debts/Liquidated Damages (8,582.43) (11,367.94)
Total 8,371.45 4,048.82

122
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Notes to Consolidated Financial Statements 2018-19

Note 9: Loans Non-Current
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Others Loans 1.31 1.31
Less : Provision for Doubtful Loans (1.31) (1.31)
Total - -

Note 10: Other Financial Assets Non- Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good
Deposits 3,609.64 2,340.34
Unbilled Revenue - 10,581.68
Claims Receivable 2,917.64 595.35
Unsecured, Doubtful
Deposits 77.33 77.33
Less: Provision for Doubtful Deposits (77.33) (77.33)
Claims Re ceivable 5.31 5.31
Less: Provision for Doubtful Claims (5.31) (5.31)
Total 6,527.28 13,517.37

Note 11: Deferred Tax Asset

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deferred Tax Liabilities
Property plant and equipment and intangible assets 6,916.78 4,934.77
Investments remeasurement 200.58 200.55
Change in the opening value of Investments(fair value)
Total Deferred Tax Liabilities 7,117.36 5,135.32
Deferred tax assets
Provision for employee benefits 12,547.30 10,538.70
Provision for doubtful debts and advances 15,146.04 11,820.58
Provision for warranty 1,696.84 987.27
Others 2,223.47 1,318.57
Total Deferred Tax Assets 31,613.65 24,665.12
Net Deferred Tax Assets 24,496.29 19,529.80
Deferred Tax Asset 6,160.71 6,823.71

Note 12: Other Non- Current Assets

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good
Capital Advances 440.37 1,244.17
Others 2,617.37 5,592.72
Unsecured, Doubtful
Advance to Suppliers 469.70 375.82
Less : Provision for Doubtful Advances (469.70) (375.82)
Total 3,057.74 6,836.89

123
 Annual Report 2018-19

Notes to Consolidated Financial Statements 2018-19

Note 13: Inventories
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Raw Materials 27,042.44 28,355.80
(includes goods in transit valued at Rs.6696.48 Lakhs as on 31st March ,2019,
Rs.3916.71 Lakhs as on 31st March, 2018 )
Less : Provision for Obsolete Raw materials (415.78) (417.90)
Work-in-Progress 65,498.60 17,392.47
Finished Goods 6,250.05 10,066.41
Stores & Spares 2,118.05 2,214.24
Loose Tools 19.41 10.66
Others:
Packing Material 146.83 295.72
Scrap 250.00 200.00
Total 1,00,909.60 58,117.40

Note 14: Trade Receivables- Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured, considered good 1,53,052.64 1,65,277.76
Doubtful - -
Less: Provision for Doubtful Debts/Liquidated Damages - -
Total 1,53,052.64 1,65,277.76

Note 15: Cash & Cash Equivalents

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Balances with Banks
(a) in Current Account 763.90 2,551.33
Cash on hand 0.05 3.91
Others
(a) Imprest Cash With Officers 0.33 0.32
(b) Remittances in Transit 9.27 23.44
Total 773.55 2,579.00

Note 16: Bank Balances other than above

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Earmarked Balance with Bank 40.07 20.30
Bank Deposits with maturity more than 3 months but less than 12 months * - 6,000.00
Total (A) 40.07 6,020.30

124
 Corporate Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements 2018-19

Note 17: Loans - Current
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Advance to Employees 51.77 536.33
Total 51.77 536.33

Note 18: Other Financial Assets- Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Deposits 282.64 1,629.18
Unbilled Revenue - 37,019.56
Claims Receivable 5,334.00 1,762.91
Contract Asset-Accrued Income 2,988.05 5,125.97
Total 8,604.69 45,537.62

Note 19: Other Current Assets

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Unsecured (considered good)
Advance to Suppliers 5,431.58 8,036.06
Advance to Related Parties 0.12 502.44
Other Advances 1,303.13 658.26
Indirect Tax credits 1,053.84 7,344.04
Total 7,788.67 16,540.80

Note 20: Equity Shares

Particulars As at As at
March 31, 2019 March 31, 2018
Authorized
Ordinary shares of par value of Rs. 1000/- each number 20,00,000 20,00,000
Amount in Lakhs 20,000.00 20,000.00
Issued, subscribed and fully paid
Ordinary shares of par value of Rs. 1000/- each number 16,33,712 16,33,712
Amount in Lakhs 16,337.12 16,337.12

Reconciliation of number of shares:

Particulars As at As at
March 31, 2019 March 31, 2018
Equity Shares outstanding at the begining of the year 16,33,712 16,33,712
Add: - -
1. No. of Shares allotted as fully paid up bonus shares during the year

125
 Annual Report 2018-19

Notes to Consolidated Financial Statements 2018-19

Reconciliation of number of shares: (Contd..)

Particulars As at As at
March 31, 2019 March 31, 2018
2. No. of Shares allotted during the year as fully paid up pursuant to a contract - -
without payment being received in cash shares during the year
3. No. of Shares allotted to employees pursuant to ESOPs/ ESPs - -
4. No. of Shares allotted for cash pursuant to public issue.
Less:
1. No. Of shares bought back during the year - -
Equity Shares outstanding at the end of the year 16,33,712 16,33,712

No. of Shares in the Company held by shareholder holding more than 5 percent

Name of the Shareholder As at As at

March 31, 2019 March 31, 2018
President of India * 16,33,712 16,33,712
Percentage of shares held 100% 100%
*Includes 3 Shares held by Nominees of Govt. of India

During the period of Five years immediately preceeding the reporting date:
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
1. Shares allotted for consideration other than cash - -
2. Shares allotted as bonus shares issued and - -
3. shares bought back - -

Note 21: Other Equity

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
General Reserve
Opening Balance 2,056.46 2,056.46
Add: Transfer from Statement of P&L - -
Closing Balance 2,056.46 2,056.46
Surplus in the Statement of Profit and Loss
Opening Balance 69,916.64 69,755.54
Add: Restatement Adjustments (4,536.74) (2,445.41)
Add: Income/(loss) for the year 24,158.32 3,947.41
Add: Dividend Received 18.38 18.38
Dividend Paid by Joint Venture to be adjusted (22.15)
Less: Dividend (1,317.98) (1,129.37)
Dividend Tax (270.98) (229.91)
Closing Balance 87,945.49 69,916.64
Other Comprehensive Income
Opening Balance 131.83 228.09
Add: Restatement Adjustments - (129.27)
Add: Income/(loss) for the year -18.68 33.01
Closing Balance 113.15 131.83
Total 90,115.09 72,104.93

126
 Corporate Overview Statutory Reports Financial Statements

Notes to Consolidated Financial Statements 2018-19

Note 22: Trade Payables- Non Current
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Dues to Micro, Small & Medium Enterprises -
Other than Micro, Small & Medium Enterprises
i) Trade Payables 1,758.15 1,750.32
ii) Expenses Payable 5,306.30 1,449.51
Total 7,064.45 3,199.83

Note 23: Other Financial Liabilities - Non Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deposits 114.62 151.22
Security Deposit 1,069.20 1,069.20
Creditors for Capital Goods 2,543.08 9,965.28
Others 1,661.10 2,182.16
Total 5,388.00 13,367.86

Note 24: Provisions -Non Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
For Employee Benefits
Gratuity 52.03 52.03
Leave Encashment 5,148.56 5,334.83
Pension 5,175.09 2,805.85
Warranty 2,215.30 2,721.10
Total 12,590.98 10,913.81

Note 25: Other Liabilities Non Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Contract Liabilities-Advance Received from Customers 14,216.64 12,145.83
Government Grants-Yet to be Utilized 4,538.26 228.96
Government Grants-Deferred Income 1,898.66 1,428.87
Total 20,653.56 13,803.66

Note 26: Borrowings - Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
(i) Loans repayable on Demand
From Banks -
Cash Credit -Secured 1.91 -
Short Term Loans -Unsecured 4,482.05 -
(ii) Other Loans from Banks
Over Draft against Fixed Deposits -Secured -
Total 4,483.96 -

127
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Notes to Consolidated Financial Statements 2018-19

Note 26: Borrowings - Current (Contd..)
The cash credit is secured by way of hypothecation of all chargeable current assets of the Company including raw material , stock
in process, finished good, stores and spares and receivables both present and future and first charge on moveable fixed assets of
the Company both present and future as collateral security.

a) The cash credits was availed from State bank of India as part of consortium facilities and is repayable on demand carrying an
interest rate of 8.70% p.a (previous year 8.25 % p.a).

Note 27: Trade Payables - Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Micro, Small & Medium Enterprises Payables 7,011.32 4,053.68
Other than Micro, Small & Medium Enterprises
i) Trade Payables 45,126.51 45,381.44
ii) Expenses Payable 24,828.96 44,150.50
76,966.79 93,585.62

Note 28: Other Financial Liabilities - Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Deposits 941.39 1,023.17
Interest accrued and due on borrowings - -
Others 10,977.04 10,962.25
Total 11,918.43 11,985.42

Note 29: Provisions -Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
For Employee Benefits
Gratuity 5,359.55 6,171.18
Leave Encashment 2,187.59 2,379.47
Others
Warranty Provision 1,903.77 1,957.39
Total 9,450.91 10,508.04

Note 30: Other Liabilities Current

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Contract Liabilities-Advance Received from Customers 56,468.77 97,655.37
Government Grants-Yet to be Utilized 3,718.66 6,202.28
Government Grants-Deferred Income 2,000.03 1,505.24
Total 62,187.46 1,05,362.89

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Notes to Consolidated Financial Statements 2018-19

Note 31: Revenue from Operations
(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
Sale of Products 2,43,099.26 97,382.78
Sale of Services 30,643.95 30,096.14
2,73,743.21 1,27,478.92
Less: Liquidated Damages on Executed Contracts (7,403.14) -
2,66,340.07 1,27,478.92
Other Operating Revenue
a) Sale of Manuals 0.31 0.26
b) Customs Duty Realisations 49.87 1,326.20
c) Provisions no longer required 2,777.23 11,651.76
d) LD's recovered from Vendors 462.35 273.36
e) Reimbursement of Freight & Insurance 2,032.19 85.72
Total 2,71,662.02 1,40,816.22

Note 32: Other Income

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
1. Interest On
a) Term Deposit Receipts 14.68 895.55
b) Others 227.89 1,677.56
2. Other Non-Operating Income
a) Rent 67.06 60.26
b) Unclaimed liabilities written back 5.68 15.72
c) Grants related Deferred Income 1,791.93 966.91
d) Miscellaneous 345.44 492.06
Total 2,452.68 4,108.06

Note 33: Cost of Materials Consumed

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended March 31,
March 31, 2019 2018
1. Consumption of Raw Materials and Components
Opening Stock 24,021.20 13,534.78
Add: Purchases 1,56,984.52 97,451.56
Less: Closing Stock (19,930.18) (24,021.20)
1,61,075.54 86,965.14
Less: Grants-in-aid (2,501.06) (1,316.08)
1,58,574.48 85,649.06
2. Consumption of :
Stores and Spares 557.25 111.31
Packing materials 171.93 150.04
Tools 23.28 15.15
3. Cost of Accessories Consumed 244.33 549.70
Total 1,59,571.27 86,475.26

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Note 34: Changes in Inventory of Finished Goods and WIP
(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
CLOSING STOCKS
Finished Stock 6,250.05 10,066.41
Work-in-Progress 65,498.60 17,392.47
Scrap 250.00 200.00
71,998.65 27,658.88
LESS: OPENING STOCKS
Finished Stock 10,066.41 583.22
Work-in-Progress 59,077.09 6,687.88
Scrap 200.00 300.00
69,343.50 7,571.10
Changes in Inventories Decretion/(Accretion) (2,655.15) (20,087.78)

Note 35: Employees’ Benefit Expenses

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
Salaries,Wages and Bonus 28,989.68 27,840.97
Contribution to Provident Fund including administrative charges 2,635.71 2,462.64
Provision for Pension 2,369.16 891.11
Provision for Gratuity 834.55 3,825.20
Welfare expenses 3,578.61 1,455.29
Total 38,407.71 36,475.21

Note 36: Finance Cost

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
Interest Expenses 2,262.53 2,015.90
Other Borrowing Costs 11.04 8.14
Total 2,273.57 2,024.04

Note 37: Depreciation And Amortization Expenses

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
Depreciation / Amortisation for the year
Depreciation on PPE 1,967.20 1,736.56
Depreciation on Grants related assets 1,791.93 966.91
Depreciation on Investment Property 2.89 2.89
Amortization of Intangible Assets 14.40 6.92
Total 3,776.42 2,713.28

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Note 38: Other Expenses
(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
1. Power and Fuel 1,035.29 881.50
2. Water charges 570.43 617.68
3. Professional and Consultancy charges 3,342.31 1,781.73
4. Travelling and Conveyance expenses 2,294.28 1,149.90
5. Repairs & Maintenance
a) Buildings 313.69 290.20
b) Plant & Machinery 51.03 115.79
c) Others 557.01 324.05
6. Stores Incidentals-Inwards 11,268.08 5,086.25
7. Rents 253.53 250.62
8. Rates and Taxes 383.90 269.17
9. Insurance 129.16 103.41
10. Printing & Stationery 116.52 92.78
11. Postage, Telegram, Telephones & Telex 65.54 87.20
12. Advertisement 57.21 114.31
13. Guest House expenses 125.69 113.54
14. Entertainment expenses 9.99 6.08
15. Books and Periodicals 4.37 9.70
16. Vehicle expenses 314.94 290.74
17. Staff Training expenses 31.74 53.47
18. Security Expenses 1,816.78 1,631.43
19. Directors` fees and Travelling expenses 1.80 -
20. Payment to Auditors
a) As Statutory Auditor 10.00 10.00
b) For Taxation Matters - -
c) For Compnay Law Matters - -
d) For Management Services - -
e) For Other Services 0.20 0.10
f) For Reimbursement of expenses 0.62 0.51
21. Loss/(Gain) on Exchange Rate Variation (Net) 479.44 497.17
22. Bank Charges 96.80 160.75
23. Commission on Bank Guarantees 67.78 99.71
24. Selling Expenses 321.81 297.84
25. Commission to Selling Agents 8.54 50.44
26. Freight Outwards 2,105.68 26.73
27. Expenditure on Warranty 1,573.47 998.08
28. Liquidated Damages on Unexecuted Contracts 3,731.55 7,457.46
29. Royalties 137.34 191.16
30. Research & Development expenses 2,378.51 1,546.43
31. Provisions:
Doubtful Advances - 40.97
For Obsolete Stock 886.31 123.34
Doubtful Debts-S.Debtors 4,702.94 4,912.56
Others - 926.75

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Note 38: Other Expenses (Contd..)
(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
32. Amounts Written off
a) Bad Debts written off 6,214.21 0.18
Less: Provisions withdrawn (6,213.92) -
b) Write off of Raw Materials 871.66 -
Less: Provisions withdrawn (871.66) -
c) Fixed Assets written off 17.85 1.70
33. Corporate Social Responsibility 135.62 139.02
34. Transfer to other Accounts
a) Expenditure on Research & Development (2,378.51) (1,546.43)
b) Warranty charges (143.61) (115.07)
c) Departmental Transfers- Production (1,197.43) (537.61)
d) Service Tax Input Credit 80.22 (565.18)
e) Corporate Social Responsibility - (23.44)
f) Repairs & Maintenance (Internal) (24.09) (105.77)
g) Grants-in-Aid (Other than material)
35. Donations - 0.20
36. Miscellaneous expenses 320.92 487.94
Total 36,055.54 28,345.09

Note 39: Other Comprehensive Income

(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended March 31,
March 31, 2019 2018
Remeasurement of Investment in APGPCL 2.21 58.71
Income tax thereon (0.77) (20.51)
Remeasurement of Define Benefit Plans-Actuarial Loss (753.82) (2,339.41)
Income Tax relating to these items 263.38 809.67
Total (489.00) (1,491.54)

NOTE 40: EXEMPTION FROM DISCLOSURE:

The Company has been exempted from disclosure of certain details mentioned below under Paragraph 5 of Part II of Schedule
III of the Companies Act 2013 under general instructions for preparation of Statement of Profit and Loss as per the notification
F.No:1/19/2013 -CL-V-Part dated 4th September 2015, issued by Ministry of Corporate Affairs.

Para Particulars
5(ii)(a) In the case of manufacturing companies
5(ii)(a) 1 Raw materials under broad heads
5(ii)(a) 2 Goods purchased under broad heads
5(ii)(e) In case of other companies, gross income derived under broad heads
5(iii) In the case of all concerns having work in progress, works in progress under broad heads
5(viii) The statement of profit and loss shall also contain by way of a note the following information namely :-

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NOTE 40: EXEMPTION FROM DISCLOSURE:

Para Particulars
a) Value of imports calculated on CIF basis by the Company during the financial year in respect of
i) Raw materials
ii) Components and spare parts
iii) Capital goods
b) Expenditure in foreign currency during the financial year on account of royalty, know how, professional and
consultation fees, interest and other matters.
c) Total value of all imported raw materials, spare parts and components consumed during the financial year
and the total value of all indigenous raw materials, spare parts and components similarly consumed and the
percentage of each to the total consumption.
d) Earnings in foreign exchange classified under the following heads, namely :-
I. Export of goods calculated on F.O.B. basis;
II. Royalty, know how, professional and consultation fees;
III. Interest and dividend;
IV. Other Income, indicating the nature thereof.

Note 41: Impact of changes in Accounting Policies:

A. Ministry of Corporate affairs has issued the new Accounting standard IND AS 115 –Revenue from Contracts with customers
which was made effective from 1st April, 2018 which supersedes the erstwhile IND AS 18 –Revenue and IND AS 11 –Construction
contracts. As the Company had opted to apply the standard retrospectively with cumulative effect of initially applying this
standard recognised as on 1st April, 2018, the previous year figures were not restated relevant to the line entries relating to
this standard.

B. The Accounting policy on revenue recognition was modified during the year 2018-19 in line with the Accounting Standard
IND AS 115 effective from 1st April, 2018 as per which revenue from sale of goods and services was accounted net of variable
consideration (Liquidated Damages and Penalties levied by the customer as per the terms of the contract). Accordingly an
amount of Rs.7403.14 Lakhs being the liquidated damages and penalties accrued on executed contracts has been reduced
from revenue from operations during the year 2018-19. The liquidated damages accrued on unexecuted contracts were
included under note “Other Expenses”.

As the recognition of revenue under percentage completion method as per erstwhile IND AS 11 was discontinued, under
the new accounting policy on Revenue Recognition, the unbilled revenue outstanding as on 1st April, 2018 was brought into
books as work in progress to the extent of costs incurred and adjusted against the “Other Equity” to the extent of profit margin
included in the unbilled revenue. Accordingly opening work in progress as on 1st April, 2018 is increased by an amount of
Rs.41684.62 Lakhs due to the above adjustment and “Other Equity” as on 1st April, 2018 is decreased by Rs.5916.62 Lakhs.

C. The Accounting policy on Liquidated damages is also modified during the year 2018-19 to net off the liquidated damages
against Trade Receivables on executed contracts. In line with the modified accounting policy the outstanding provisions
for liquidated damages on executed contracts as on 31st March, 2018 were also netted off against the outstanding Trade
Receivables. Accordingly an amount of Rs.19372.29 Lakhs has been reduced from the Trade Receivables as well as outstanding
provisions for liquidated damages as on 31st March, 2019. There is no impact in Statement of Profit and Loss on account of
this adjustment.

D. As the Company is preparing the separate financial statements, investments in Joint Venture in standalone financial statements
can be considered at cost or at fair value as per IND AS 28. Accordingly the existing accounting policy on investments has been
changed to value the investments in Joint Venture at cost. In line with the above the value of investments in Joint Venture is
decreased by an amount of Rs.3456.04 Lakhs and Other Equity” is decreased by Rs.2,259.90 Lakhs (net of taxes).

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Note No.42: Revenue from Contracts with Customers:
A. Company has recognized the following revenue (before netting off liquidated damages) during the year from contracts with its
customers
(Rs. In Lakhs)
Particulars For the Year For the Year
ended ended
March 31, 2019 March 31, 2018
Sales of Products 2,43,099.26 97,382.78
Sale of Services 30,643.95 30,096.14

B. Details of Contract Assets and Liabilities :

(Rs. In Lakhs)
Particulars Contract Assets Contract
Liabilities
Opening Balance as on 1st April 2018 5,125.97 1,09,801.20
Closing Balance as on 31st March 2019 2,988.05 70,685.41

C. Cost to obtain / fulfill the contract: Amount recognised as asset as at 31st March, 2019: Rs. Nil.

D. Status of Unexecuted Contracts with Customers:

(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Opening Balance of unexecuted portion of the contracts 3,52,000 2,56,000
Add: Contracts received during the year 2,03,400 2,22,900
Less: Contracts executed during the year 2,72,800 1,26,900
Closing balance of unexecuted portion 2,82,600 3,52,000

E. As the Company is mainly catering to the needs of Strategic sectors, the disaggregation of Revenue into various segments is
not disclosed due to reasons of confidentiality.

F. The contracts undertaken by the Company are large in number and the total estimated cost of contracts undergoes a change on
account of change in estimates as well as change in scope of work dynamically at the request of customer. Had the Company
followed erstwhile IND AS-11 and IND AS-18 during F.Y 2018-19, the impact of line items that would have been affected, could not be
worked out, as it is impracticable to work out the contract revenue, as, it is prone to subjective assumptions to arrive at the percentage
completion of the contract revenue and the profit element of the despatches made out of the opening unbilled revenue.

Note No.43 : INCOME TAX :

A reconciliation of the Income Tax provision to the amount computed by applying the statutory income tax rate to the profit before
tax is summarized as follows:
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Profit before tax as per consolidated Financial Statements 37,101.73 8,605.82
Less: 49% share of profit pertaining to ECIL Rapiscan Ltd for the F.Y 2018-19 398.01 205.22
Profit before tax of ECIL for the F.Y 2018-19 36,703.72 8,400.60
Enacted Tax rates for the financial year 34.94% 34.61%
Expected tax expense (A) 12,824.28 2,907.44
Tax affect on allowable items (B) (6,195.23) (6,282.98)

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Note No.43 : INCOME TAX : (Contd..)
(Rs. In Lakhs)
Particulars As at As at
March 31, 2019 March 31, 2018
Tax affect on disallowable items (C) 4,741.70 3,891.33
Tax affect of OCI - Gratuity items (D) (263.39) 809.67
Tax on incomes chargeable under other heads (E) 17.67 24.21
Provision for income tax for the current year (A+B+C+D+E) 11,125.03 1,349.67
Interest on income tax for the year 514.82 0
Current tax for the year 11,640.00 1,349.67
Tax credits allowable 0.00 0.00
Deferred tax for the year excluding OCI Items 662.23 1,768.57
Tax expense of earlier years adjusted -112.64 10.42
Net tax expense for the year 12,189.59 3,128.66
Deferred Tax for the year on OCI Items -0.77 20.51
Total deferred tax affect for the year 663.00 1,789.08

Note No.44: EMPLOYEE BENEFITS

a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to a separate trust ECIL Employees
Provident Fund, which invests the funds in permitted securities. Contribution to family (Employees)pension scheme is paid to
the appropriate authorities. The contribution of Rs.2635.71 Lakhs (Previous year Rs. 2462.64Lakhs) including administrative
charges is recognized as expense and is charged in the Statement of Profit and Loss. The obligation of the Company is to
make such fixed contribution and to ensure a minimum rate of return as specified by GOI to the members. The overall interest
earnings and cumulative surplus is more than the statutory interest payment requirement during the year.

b) Gratuity: Gratuity is a funded Defined Benefit Plan payable to the qualifying employees on separation. It is managed by a
separate trust, ECIL Employees Gratuity Fund through ‘Employees Group Gratuity cum Life Assurance Scheme’ of the Life
Insurance Corporation of India.

Company makes annual contribution to the Fund based on the present value of the Defined Benefit obligation and the related
current service costs which are measured on actuarial valuation carried out as on Balance Sheet date. The liability has been
assessed using Projected Unit Credit (PUC) Actuarial Cost Method.

Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the year ended
March 31, 2019 are as follows.
(Rs. In Lakhs)
I. Change in Benefit obligation : As at As at
March 31, 2019 March 31, 2018
Present value of obligation as at the beginning 15,367.94 10,942.29
a) Interest Cost 1,076.05 779.36
b) Current Service Cost 394.48 396.32
c) Past Service Cost - 3,362.28
d) Benefits paid 3,834.48 2,400.55
e) Actuarial (gain) / loss 750.27 2,288.23
Present value of obligation at the end of the period 13,754.25 15,367.94

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Note No.44: EMPLOYEE BENEFITS (Contd..)
(Rs. In Lakhs)
II. Change in Fair value of plan assets As at As at
March 31, 2019 March 31, 2018
Fair value of Plan Assets at the beginning of the year 9,196.76 9,237.04
a) Expected return on plan assets 635.98 710.96
b) Contributions 2,400.49 1,700.48
c) Benefits paid 3,834.48 2,400.55
d) Actuarial (gain)/loss on plan assets (3.55) (51.18)
Fair value of Plan Assets at the end of the period 8,395.20 9,196.76
Excess of Obligation over Plan Assets 5,359.05 6,171.18

(Rs. In Lakhs)
III. Expenses recognized in the Statement of Profit & Loss : For the year For the year
ended ended
March 31, 2019 March 31, 2018
a) Total service Cost 394.47 3,758.60
b) Interest Cost 1,076.06 779.36
c) Expected return on Plan Assets 635.98 710.96
d) Net Actuarial (gain)/loss recognized in the period 753.82 2,339.41
Expenses recognized in the statement of Profit & Loss 1,588.37 6,166.41

(Rs. In Lakhs)
IV. Amounts recognized in the Balance Sheet As at As at
March 31, 2019 March 31, 2018
a) Present value of Obligation as at the end of the period 13,754.25 15,367.94
b) Fair value of Plan Assets at the end of the period 8,395.20 9,196.76
c) Funded Status (5,359.05) (6,171.18)
d) Liability recognized in Balance Sheet ** 5,411.58 6,223.21
** The above amount includes Rs.52.03 Lakhs (previous year Rs. 52.03 Lakhs) towards gratuity payable to ex-employees
which is not claimed by them as at 31-3-2019.

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Note No.44: EMPLOYEE BENEFITS (Contd..)

V. Major Category of plan assets:

Not applicable as the funds were invested through Fund Manager, Central Office, Investment Department of Life Insurance
Corporation of India.
(Rs. In Lakhs)
VI. Principal Assumptions As at As at
March 31, 2019 March 31, 2018
a) Discounting Rate 7.5% 8%
b) Salary Escalation Rate 6% 6%

The estimates of future salary increase considered in actuarial valuation, have been factored in inflation, seniority, promotion
and other relevant factors.

c) Leave Encashment:

Earned Leave/Vocation Leave can be encashed to a maximum of 50% of the leave at the credit of the employee subject to
the condition that the leave encashed at a time shall not be less than 10 days and shall not be more than 54 days in case of
Earned Leave, 90 days in case of Vocation Leave. However, employees are entitled to a maximum of 180 / 300 days towards
the terminal benefits on superannuation/ VR/Resignation/Termination. The scheme is unfunded and liability is recognized on
the basis of actuarial valuation. An amount of Rs. 1395.46Lakhs (previous year Rs.3273.97Lakhs) has been provided during
the year 2018-19 to keep the leave encashment liability as per the actuarial valuation at Rs.7336.15Lakhs (previous year Rs.
7714.30Lakhs) as on 31.03.2019.

The actuarial assumption for salary rise is 6 % (Previous Year 6%) and discount rate is 7.5% (Previous Year 8%).

d) Pension:

As per the guidelines issued by Department of Public Enterprises, Government of India, the Company is allowed to extend
upto 30% of the basic pay plus dearness pay as Superannuation benefits including contributory provident fund, gratuity etc.
In compliance with the said DPE guidelines issued for pay revision of executives, a provision towards pension for executives is
made for Rs.1211.09 Lakhs during the Financial Year 2018-19 (Previous year Rs.891.11 Lakhs).

In line with the provision of Pension for Executives, Management has approved and extended similar benefit to workmen during
the year with effect from the year 2015-16. Accordingly a provision towards pension for workmen is made for Rs. 1158.07 Lakhs
during the financial year 2018-19.

e) Wage Revision for Workmen:

Wage scales for Workmen are due for revision from 1st January, 2017. The wage revision agreement with the management was
concluded in the year September 2018 and the new scales were implemented from October, 2018. The wage arrears from 1st
January, 2017 to 31st March, 2018 included in “Employees’ Benefit Expenses” amounting to Rs. 882.07 Lakhs was paid during
the year 2018-19.

f) Fringe Benefits:

The negotiations for implementing Fringe benefits on the revised scales for Officers were concluded and the negotiations with
workmen are at the final stage of negotiation. An amount of Rs. 674.64 Lakhs was provided during the year 2018-19 towards
the Fringe benefits. (Previous Year Nil)

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Notes to Consolidated Financial Statements 2018-19

Note 45: GOVERNMENT GRANTS:
Unspent balance of Rs.8,256.92Lakhs as on March 31, 2019 (previous year Rs. 5,968.14Lakhs) out of Grants-in-Aid received from
Bhabha Atomic Research Centre (BARC) under XII Five Year Plan for facility creation and Grants received from Government of India
(GOI) for undertaking various Research & Development Projects is included under “Other Current Liabilities” in the Balance Sheet.

(Rs. In Lakhs)
S. Particulars For the year For the year
No. ended ended
March 31, 2019 March 31, 2018
Grants
1 Opening Balance 5,968.14 3,386.58
2 Total receipts during the year 5,415.35 6,803.62
3 Adjustments 2,142.97 29.51
4 Utilized during the year towards
a) Revenue Items 2,513.02 1,316.08
b) Capital Items 2,756.52 2,935.50
5 Closing balance 8,256.92 5,968.14

Note 46: RELATED PARTY DISCLOSURES:

Remuneration to Key Management Personnel – Rs.169.89Lakhs (Previous year Rs.80.82Lakhs) as detailed below:
(Rs. In Lakhs)
Name of the Key Management Position Held Salary Contribution Pension and Total
Personnel to PF other benefits
Shri Debashis Das, Chairman & Managing Director * (from 01.04.2018 to 30.06.2018)
Rear Admiral Sanjay Chaubey Director (Technical) (from
27.04.2018 to 30.06.2018)& 25.86 3.29 11.15 40.30
Chairman & Managing Director (--) (--) (--) (--)
(from 01.07.2018 onwards)
Shri Kishor Rungta Director (Finance) (from 41.42 3.30 37.72 82.44
01.04.2018 to 01.02.2019 (25.51) (2.70) (9.02) (37.23)
Shri Deepak Vijayendra Sastry Director (Personnel) ( from 8.22 1.07 3.81 13.10
12.12.2018 to 09.05.2019 (--) (--) (--) (--)
Shri V S B Babu Director (Personnel) ( from 18.54 0.54 0.00 19.08
01.04.2018 to 04.04.2018) (25.50) (2.70) (5.93) (34.13)
Shri MSRS Prasad Company Secretary( from 10.07 1.23 3.67 14.97
01.03.2018 onwards) (0.85) (0.09) (0.11) (1.05)
Shri Jai Bhagwan Sharma Company Secretary(from -- -- -- --
01.04.2017 to 18.08.2017) (4.46) (0.47) (0.59) (5.52)
Shri Ashish Kumar Srivastava Company Secretary (from -- -- -- --
02.11.2017 to 28.02.2018) (2.32) (0.25) (0.32) (2.89)
Grand Total 104.11 9.43 56.35 169.89
(58.64) (6.21) (15.97) (80.82)
* Shri Debashis Das was given Additional Charge as Chairman & Managing Director of ECIL with effect from November 01, 2016 to 30th June 2018 and his remuneration
was drawn from BARC.

Other Key Managerial Personnel:

Shri Mohinder Chopra, Director, ECIL Rapiscan Limited

Shri Deepak Chopra, Director, ECIL Rapiscan Limited
Shri VinodKapoor, Whole Time Director, ECIL Rapiscan Limited

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Note 47: EARNINGS PER SHARE:
(a) Earnings per share is calculated as shown below:

Particulars Units For the year For the year

ended ended
March 31, 2019 March 31, 2018
Numerator : Net Profit after tax as per Statement of Profit and Loss Rs. Lakhs 24,648.76 5,477.05
Denominator : Number of equity shares No.s 16,33,712 16,33,712
Number of equity shares allotted during the year No.s NIL NIL
Weighted average number of equity shares for calculation No.s
16,33,712 16,33,712
of earnings per share (Basic & Diluted)
Nominal value of equity share Rs. 1,000/- 1,000/-
Earnings per share (Basic & Diluted) Rs. 1,508.76 335.25

(b) Dividend: The Board of Directors have recommended a dividend at Rs.153.02 Per share ofRs.1,000 amounting to Rs.2,500.00
Lakhs for the year2018-19 excluding dividend distributiontax.

Note 48: PROVISIONS:

(a) Provision is made for warranty expenditure at 0.5% on sale value of “Point of sale contracts” and 2% on sale value of “Over the
time sale contracts

The details of provisions made are as under:

(Rs. In Lakhs)
Particulars As at 31st March 2019
On Point of On over the
time sales period contracts
Opening Balance 987.27 3,691.22
Provisions made during the year 1,069.81 498.67
Amounts used / reversed (i.e, incurred and charged against provision) 360.24 1,767.66
Closing balance 1,696.84 2,422.23

Previous figures were not restated as per Note No.41A.

Note 49: INVESTMENT PROPERTY:

The Company is not holding any assets which qualify the definition of Investment property as there is no intension to earn rentals or
for capital appreciation. However, some properties are earning rental income due to administrative reasons; those assets are shown
separately in the investment property schedule. The measurement of the property is considered at cost.

The amounts recognized in Profit or Loss for

I. Rental income Rs.67.06 Lakhs

II. Direct Operating expenses arising from Investment Property that generated rental income during the period - Nil.
III. Direct Operating expenses arising from Investment Property that did not generate rental income during the period - Nil.
IV. Restrictions in the realisability on Investment property or the remittance of income and proceeds of disposal - Nil
V. Contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements - Nil.

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Note 50: CONTINGENT LIABILITIES:
(a) Contingent Liabilities and Capital Commitments
(Rs. In Lakhs)
S. Particulars As at As at
No. March 31, 2019 March 31, 2018
i) Contingent Liabilities (to the extent not provided for)
a) Claims against the Company not acknowledged as debt 5,917.09 6,495.89
(i) Court/Arbitration cases 48,057.11 45,380.16
(ii) Demands from Government authorities and appeals filed against the
Company not provided for in respect of taxation matters
b) Others 8,568.38 6,730.08
i) Letters of Credit 65,277.58 1,03,829.00
ii) Indemnity Bonds 35,844.99 29,051.29
iii) Corporate Guarantees 1,729.82 1,760.11
iv) Others
c) No provision is considered necessary in respect of the differential sales tax liability of Rs.66.49Lakhs estimated at next
higher rate of tax that may devolve on the Company for non-receipt & submission of statutory forms in respect of
pending assessments for the years 2016-17 to 2017-18 (previous year Rs. 243.36 Lakhs), as the Company is confident of
collecting the statutory forms from the customers for onward submission to Commercial tax department.
d) The Company has no hedging arrangements with the banks for payment of foreign currency transactions during the
year.
e) There exists no liability whether crystallized or contingent as on 31.03.2019 in terms of the Civil Liability for Nuclear
Damage Act, 2010.
ii) Commitments:
a) Estimated amount of contractual commitments for the acquisition of 2,244.30 2,808.82
Property, Plant & Equipment and not provided for (Net of Advances)
b) Other commitments Nil Nil

Note 51: OPERATING SEGMENTS

As the Company is mainly engaged in Defence production, exemption is available from applicability of Accounting Standard on
Segment Reporting under Section 129 of Companies Act 2013 vide Notification dated 23rd February 2018 of Ministry of Corporate
Affairs.

Note 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT

Fair Value Measurements:

Financial Instruments by Categories, its carrying value and Fair value:

(Rs. In Lakhs)
As at March, 2019
Particulars Amortized cost FVTPL FVTOCI Carrying Total fair value
value as of
March 31, 2019
Assets:
Investments in Equity Instruments 0.02 0 293.91 293.93 293.93
Cash & Cash Equivalents 773.55 773.55 773.55
Bank Balances 40.07 0 0 40.07 40.07
Trade Receivable 1,61,424.09 0 0 1,61,424.09 1,61,424.09
Loans 51.77 0 0 51.77 51.77
Other Financial Assets 15,131.97 15,131.97 15,131.97

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Notes to Consolidated Financial Statements 2018-19

Note 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (Contd..)
(Rs. In Lakhs)
As at March, 2019
Particulars Amortized cost FVTPL FVTOCI Carrying Total fair value
value as of
March 31, 2019
Liabilities:
Trade Payable 84,031.24 0 0 84,031.24 84,031.24
Borrowings 4,483.96 0 0 4,483.96 4,483.96
Other Financial Liabilities 17,306.43 0 0 17,306.43 17,306.43

(Rs. In Lakhs)
As at March, 2018
Particulars Amortized cost FVTPL FVTOCI Carrying Total fair value
value as of
March 31, 2018
Assets:
Investments in Equity Instruments 0.02 0 291.70 291.72 291.72
Cash & Cash Equivalents 2,579.00 0 0 2,579.00 2,579.00
Bank Balances 6,020.30 0 0 6,020.30 6,020.30
Trade Receivable 1,69,326.58 0 0 1,69,326.58 1,69,326.58
Loans 536.33 0 0 536.33 536.33
Other Financial Assets 59,054.99 0 0 59,054.99 59,054.99
Liabilities:
Trade Payable 96,785.45 0 0 96,785.45 96,785.45
Borrowings - 0 0 - -
Other Financial Liabilities 25,353.28 0 0 25,353.28 25,353.28

The carrying amounts of above Financial Assets and Liabilities are considered to be same (except in case of investments) as their
fair values due to the nature of the contractual obligations.

Fair Value Hierarchy

Management considers that, the carrying amount of those financial assets and financial liabilities that are not subsequently measured
at fair value in the Financial Statements approximate their transaction value. No financial instruments are recognized and measured
at fair value for which fair values are determined using the judgments and estimates. The fair value of Financial Instruments referred
below has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the
highest priority to quoted prices in active market for identical assets or liabilities. (Level-1 measurements) and lowest priority to
unobservable (Level-3 measurements). The categories used are as follows:

• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted) in active markets.
• Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted prices included within Level
1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on observable market data
(unobservable inputs).

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Notes to Consolidated Financial Statements 2018-19

Note 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (Contd..)

The following table presents fair value hierarchy as at March 31, 2019:
(Rs. In Lakhs)
Particulars As at Fair value measurement at end of the reporting
March 31, 2019 period/year
Level 1 Level 2 Level 3
Financial Assets
Investment in Equity Instruments 293.91 - - 293.91

The following table presents fair value hierarchy as at March 31, 2018:
(Rs. In Lakhs)
Particulars As at Fair value measurement at end of the reporting
March 31, 2018 period/year
Level 1 Level 2 Level 3
Financial Assets
Investment in Equity Instruments 291.70 - - 291.70

Valuation Process:

For Level-3 financial instruments, the fair values have been determined by applying the Net Book value method.

The carrying amounts of receivables, payables and cash and cash equivalents are considered to be same as their fair value due to
their contractual obligations.

For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Financial Risk Management:

The Company’s activities expose to a variety offinancial risks viz.,market risk, credit risk and liquidity risk. The Company’s focus is to
fore see the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The
primary market risk to the Company is credit risk and liquidity risk. The Company’s exposure to credit risk is in fluenced mainly by,
dealings with Government and Government agencies being the top customers.

a. Management of Market Risk:

Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate financial assets as
fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company is not exposed to any interest rate risk.
Similarly, the Company does not have any Financial Instrument which is exposed to change in price.

b. Foreign Currency Risks:

The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with respect to the US
Dollars (USD), Euro (EUR) and other foreign currencies for the imports being made by the Company for execution of its contracts.

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Note 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (Contd..)

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on March 31, 2019 is
as follows:
(Rs. In Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings - - - -
Trade Payables 7,757.60 1,665.72 243.71 9,667.03
Other Liabilities - - - -
Less: Currency Forwards - - - -
Net Exposure to foreign currency risk
- - - -
(liabilities)

Increase/ (Decrease) to profit before tax for changes of 5% against INR:

(Rs. In Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Strengthened (387.88) (83.29) (12.16) (483.35)
Weakened 387.88 83.29 12.16 483.35

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on March 31, 2018 is
as follows:
(Rs. In Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings
Trade Payables 10,351.71 1,552.95 52.88 11,957.54
Other Liabilities
Less: Currency Forwards
Net Exposure to foreign currency risk
10,351.71 1,552.95 52.88 11,957.54
(liabilities)

Increase/(Decrease) to profit before tax for changes of 5% against INR :

(Rs. In Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Strengthened (517.59) (77.65) (2.64) (597.88)
Weakened 517.59 77.65 2.64 597.88

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Notes to Consolidated Financial Statements 2018-19

Note 52: FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT (Contd..)

c. Credit Risk:

“Credit risk is the risk of financial loss to the Company if a customer or a counter party fails to meet its contractual obligations.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables”.

The Company recognizes impairment loss on trade receivables using expected credit loss model which involves use of
simplified approach on the basis of historical credit loss experience as permitted under IND AS 109.
(Rs. In Lakhs)
Particulars As at As at
31st March, 2019 31st March, 2018
Opening Balance 11,367.94 16,699.88
Changes in allowance for expected credit loss
- Loss based on ECL 2,227.65 2,336.71
- Additional Provision (net of withdrawls) 1,200.76 (7,668.65)
- Write off of bad debts (6,213.92) 0.00
Closing Balance 8,582.43 11,367.94

d. Liquidity Risk:

The Company`s liquidity needs are monitored on the basis of monthly projections. The principal sources of liquidity are cash and
cash equivalents, cash generated from operations and availability of cash credit and overdraft facilities to meet the obligations
as and when due.

Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee dues during the normal
course of business. The Company maintains sufficient balance in cash and cash equivalents and working capital facilities to
meet the short term liquidity requirements.

The Company assesses long term liquidity requirements on a periodical basis and manages them through internal accruals and
committed credit lines.

The following table shows the maturity analysis of the Companies Financial Liabilities based on contractually agreed,
undiscounted cash flows as at the balance sheet date.
(Rs. In Lakhs)
Particulars Carrying amount <12 months >12 months Total
As on March 2019
Trade Payables 84,031.24 76,966.79 7,064.45 84,031.24
Other Financial Liabilities 17,306.43 11,918.43 5,388.00 17,306.43
As on March 31, 2018
Trade Payables 96,785.45 93,585.62 3,199.83 96,785.45
Other Financial Liabilities 25,353.28 11,985.42 13,367.86 25,353.28

Note 53: CORPORATE SOCIAL RESPONSIBILITY (CSR):

As per Section 135 of the Companies Act, 2013 and rules made there under on CSR Activities, the Company has incurred an amount
of Rs.135.62 Lakhs (Previous year Rs.139.02 Lakhs) towards Corporate Social Responsibility activities during the Financial Year
2018-19 and debited to Statement of Profit and Loss.

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Notes to Consolidated Financial Statements 2018-19

Note 53: CORPORATE SOCIAL RESPONSIBILITY (CSR) (Contd..)

The amount of expenditure to be spent on CSR activities and financial details as per the Companies Act, 2013 for the F.Y 2018-19
are as under:
(Rs. In Lakhs)
S. Particulars As at As at
No. March 31,2019 March 31,2018
1 Aggregate net profits of last three financial years as per Section 198 of the
24,872.63 23,034.46
Companies Act, 2013
2 Average of net profits 8,290.88 7,678.15
3 Earmarked percentage U/s 135 of the Companies Act, 2013 towards CSR Activities 2% 2%
4 Amount to be spent towards CSR Activities for the F.Y 2018-19 165.82 153.56
5 Amount actually incurred on CSR Activities during F.Y 2018-19 135.62 139.02

As per Paragraph 17(b) of the Guidance Note on CSR issued by ICAI, the details of expenditure incurred by the Company on CSR
activities are as follows:
(Rs. In Lakhs)
S. Particulars In Cash Yet to be paid Total
No. in Cash
(i) Construction/Acquisition of asset 43.46 4.28 47.74
(27.72) (15.46) (43.18)
(ii) Other than (i) above: 84.32 3.56 87.88
(95.84) (-) (95.84)

NOTE 54: OTHERS:

i. The disclosure relating to transactions with Micro, Small and Medium Enterprises are given below:
(Rs. In Lakhs)
S. Particulars As at As at
No. March 31,2019 March 31,2018
a) The principal amount and the interest due thereon (to be shown separately) 7,011.32 4,053.68
remaining unpaid to any supplier at the end of the each accounting year. 11.04 8.14
(i) Principal
(ii) Interest
b) The amount of interest paid by the buyer in terms of Section 16 of the Micro, Nil Nil
Small and Medium Enterprises Development Act, 2006, along with the
amount of the payment made to the supplier beyond the appointed day
during each accounting year.
c) The amount of interest due and payable for the period of delay in making Nil Nil
payment(which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the Micro, Small and
Medium Enterprises Development Act, 2006
d) The amount of interest accrued and remaining unpaid at the end of each Nil Nil
accounting year end
e) The amount of further interest remaining due and payable even in the 11.04 8.14
succeeding years, until such date when the interest dues above are actually
paid to the small enterprise, for the purpose of disallowance of a deductible
expenditure under Section 23 of the Micro, Small, Medium enterprises
Development Act, 2006.

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Notes to Consolidated Financial Statements 2018-19

NOTE 54: OTHERS: (Contd..)
ii. Materials received pending inspection and acceptance and materials dispatched by vendors for which title has been transferred
to the Company as per the terms of the contract which are in transit are considered as Raw materials-in-transit or Capital goods-
in-transit as the case may be and included in Inventories and Capital work-in-progress respectively.

iii. Inventories include material with sub contractors amounting to Rs.32.02 Lakhs (previous year Rs.7.90 Lakhs) and finished goods
amounting to Rs.0.14 Lakhs (previous year Rs.Nil) sent on demonstration/exhibition /approval.

iv. Two MCV and one MCP against the order of M/s. Bharat Dynamics Limited on which sale was recognized has been retained in
the premises of the Company for more than 10 years at the request of the customer and an amount of Rs. 23.94 Lakhs is due
from the customer.

v. The Company requested its debtors and creditors to confirm the balances as at the end of half year in respect of trade payables,
trade receivables and advances directly to the Statutory Auditors.

vi. Recent Accounting Pronouncements :

a) IND AS-116 – “Leases” The Ministry of Corporate Affairs notified the standard IND AS-116 “Leases” amendment on
30th March 2019. Measurement under this standard will be effective from the year beginning on or after 1st April 2019.
The Company has no significant leases, however the Company is evaluating the effect of this standard on the Financial
Statements.

b) IND AS 12 – “Income Taxes” - Appendix C Uncertainty over Income tax treatments: Ministry of Corporate affairs notified
this amendment on 30th March 2019, with effective date of adoption of IND AS 12 Appendix C from 1st April 2019. The
Company is evaluating the effect of this standard on the financial statements.

c) Amendment to IND AS 12 - “Income Taxes”: Ministry of Corporate affairs notified this amendment on 30th March 2019
relating to income tax consequences on dividend and distribution tax. The Company is evaluating the effect of this standard
on the financial statements.

d) Amendment to IND AS 19 – “Employee Benefits” – Plan amendment, curtailment and settlement: Ministry of Corporate
affairs notified this amendment on 30th March 2019, issued amendments to IND AS 19 Employee Benefits. These
amendments are applicable to the accounting period beginning on 1st April 2019. The Company is evaluating the impact
of this amendment in the financial statements

vii. Previous year’s figures have been regrouped/reclassified/restated wherever necessary to confirm to the current year’s
presentation.

Note 55A: Investments in Joint Venture accounted for using the “Equity Method”
(Rs. In Lakhs)
Reconciliation of Carrying Amount of Joint Venture ECIL Rapiscan Limited: As at As at
March 31,2019 March 31,2018
Opening Net Assets 7,303.55 6,903.14
Profit for the year 849.77 456.13
Other Comprehensive Income (41.07) (10.59)
Less Dividend Paid 45.20 45.13
Closing Net Assets 8,067.05 7,303.55
ECIL Share in % 49% 49%
ECIL Share in Rs. Lakhs 3,952.85 3,578.74
Carrying amount 3,952.85 3,578.74

Note: The above figures are as per the Audited Financial Statements of ECIL Rapiscan Limited for the Financial Year 2018-19.

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Notes to Consolidated Financial Statements 2018-19

Note 55B: Share of the profit or loss of associates and joint ventures accounted for using the
equity method
(Rs. In Lakhs)
Particulars As at As at
March 31,2019 March 31,2018
Revenue 8,193.43 10,457.49
Purchases of Traded Goods 2,226.81 5,161.19
Increase/(Decrease) in Inventory 725.41 894.99
Depreciation and Amortisation 23.58 37.36
Finance Cost 234.46 210.23
Employee benefit 1,389.37 1,182.20
Other Expense 2,454.04 2,124.54
Profit before tax 1,139.76 846.98
Income Tax Expense 289.99 390.85
Profit for the year ( Continuing operations) 849.77 456.13
ECIL Share in Profit % 49% 49%
ECIL's Share in Profit 416.39 223.50

Note: The above figures are as per the Audited Financial Statements of ECIL Rapiscan Limited for the Financial Year 2018-19.

Note 55 C: Share of other comprehensive income of joint ventures accounted for using the
equity method
(Rs. In Lakhs)
Particulars As at As at
March 31,2019 March 31,2018
Other Comprehensive Income (Net of Tax) (41.07) (10.59)
ECIL Share in Profit % 49% 49%
ECIL's Share in Profit (20.12) (5.19)

(Rs. In Lakhs)
Total Other Comprehensive Income As at As at
March 31,2019 March 31,2018
Total Other Comprehensive Income 808.70 445.54
ECIL Share in Profit % 49% 49%
Share of profit from ECRL 396.26 218.31

Note: The above figures are as per the Audited Financial Statements of ECIL Rapiscan Limited for the Financial Year 2018-19.

(Rs. In Lakhs)
Summary Balance sheet of ECIL Rapiscan As at As at
March 31,2019 March 31,2018
Current Assets
Cash and Cash equvalents 3,369.06 1,534.29
Other Current Assets 5,340.28 7,040.49
Total Current Assets 8,709.34 8,574.78
Total Non Current Assets 3,522.39 4,817.72
Current Liabilities
Financial Liabilites other than Trade payables 198.26 180.00
Other Current Liabilities 3,211.67 3,944.70
Total Current Liabilites 3,409.93 4,124.7
Non Current Liabilites
Financial Liabilites other than Trade payables 3.58 870.25
Other CurrentLiabilities 451.18 794.00
Total Non Current Liabilites 454.76 1,664.25
Net Assets (Networth) 8,367.04 7,603.55

Note: The above figures are as per the Audited Financial Statements of ECIL Rapiscan Limited for the Financial Year 2018-19.

147
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Notes to Consolidated Financial Statements 2018-19

Note 55D: Additional Information required for Consolidated Financial Statements as per Schedule III
of Companies Act, 2013 and applicable IND AS
(Rs. In Lakhs)
Name of the Entity Net Assets, i.e total assets Share in profit or loss Share in other Share in total comprehensive
minus total liabilities comprehensive income income
As % of Amount As % of Amount As % of Amount As % of Consolidated Amount
Consolidated Consolidated Consolidated total comprehensive
net assets Profit or Loss other income
Joint Venture
(Investment as per the
equity method)
Indian
ECIL RAPISCAN
LIMITED
2018-19 49% 3952.85 49% 416.39 49% (20.12) 49% 396.26
2017-18 49% 3578.74 49% 223.50 49% (5.19) 49% 218.31

(Rs. In Lakhs)
Summary Balance sheet of ECIL Rapiscan As at As at
March 31,2019 March 31,2018
Current Assets
Cash and Cash equvalents 3,369.06 1,534.29
Other Current Assets 5,340.28 7,040.49
Total Current Assets 8,709.34 8,574.78
Total Non Current Assets 3,522.39 4,817.72
Current Liabilities
Financial Liabilites other than Trade payables 198.26 180.00
Other Current Liabilities 3,211.67 3,944.70
Total Current Liabilites 3,409.93 4,124.70
Non Current Liabilites
Financial Liabilites other than Trade payables 3.58 870.25
Other Non Current Liabilities 451.18 794.00
Total Non Current Liabilites 454.76 1,664.25
Net Assets (Networth) 8,367.04 7,603.55

(Rs. In Lakhs)
Reconciliation of Carrying Amount of Joint Venture ECIL Rapiscan Limited: As at As at
March 31,2019 March 31,2018
Opening Net Assets 7,303.55 6,903.14
Profit for the year 849.77 456.13
Other Comprehensive Income (41.07) (10.59)
Less Dividend Paid 45.20 45.13
Closing Net Assets 8,067.05 7,303.55
ECIL Share in % 49 49
ECIL Share in Rs. Lakhs 3,952.85 3,578.74
Carrying amount 3,952.85 3,578.74

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Notes to Consolidated Financial Statements 2018-19

Note 55D: Additional Information required for Consolidated Financial Statements as per Schedule III
of Companies Act, 2013 and applicable IND AS (Contd..)
(Rs. In Lakhs)
Statement of Profit and Loss As at As at
March 31,2019 March 31,2018
Revenue 8,193.43 10,457.49
Purchases of Traded Goods 2,226.81 5,161.19
Increase/(Decrease) in Inventory 725.41 894.99
Depreciation and Amortisation 23.58 37.36
Finance Cost 234.46 210.23
Employee benefit 1,389.37 1,182.2
Other Expense 2,454.04 2,124.54
Profit before tax 1,139.76 846.98
Income Tax Expense 289.99 390.85
Profit for the year ( Continuing operations) 849.77 456.13
ECIL Share in Profit % 49 49
ECIL's Share in Profit 416.39 223.50
Other Comprehensive Income (Net of Tax) (41.07) (10.59)
ECIL Share in Profit % 49 49
ECIL's Share in Profit (20.12) (5.19)
Total Other Comprehensive Income 808.70 445.54
ECIL Share in Profit % 49 49
Share of profit from ECRL 396.26 218.31
Dividend Received by ECIL 18.35 18.35

Commitments and Contingent Liabilities in respect of Joint Venture ECIL Rapiscan Limited (ECRL)
(Rs. In Lakhs)
Particulars As at As at
March 31,2019 March 31,2018
Joint Venture's total Contingent Liability in respect of Service Tax and Bank 1,701.02 1,590.55
Guarantees as per Audited Financial Statements
ECIL Share in % 49 49
Share of Joint Venture's Contingent Liability in respect of Service Tax and Bank 833.50 779.37
Guarantees as per Audited Financial Statements
Joint Venture's total Capital Commitments Netoff Advances as per Audited Financial - -
Statements
ECIL Share in % 49 49
Share of Joint Venture's Capital Commitments Netoff Advances as per Audited - -
Financial Statements

149

Annexure – ‘E’
Independent Auditors’ Report
To
The Members
Electronics Corporation of India Limited
Hyderabad
Report on the Audit of the Consolidated financial
statements
Qualified Opinion
We have audited the accompanying Consolidated financial
statements of Electronics Corporation of India Limited (ECIL),
(hereinafter referred to as “the Company”) and its Jointly
controlled entity (the Company and its Jointly controlled entity
are collectively referred to as “the Group”), which comprise
the consolidated Balance Sheet as at 31st March, 2019, the
consolidated Statement of Profit & Loss (including other
comprehensive income), the consolidated Cash Flow Statement
and consolidated Statement of Changes in Equity for the year
then ended, and a summary of the significant accounting
policies and other explanatory information hereinafter referred
to as “the Consolidated financial statements”.
The report is issued modifying our Audit Report dated
8th August 2019, so as to include the impact of C & AG
observations on the Consolidated Financial Statements.
In our opinion and to the best of our information and according
to the explanations given to us, except for the effects of the
matter described in the ‘Basis for Qualified Opinion’ paragraph,
the aforesaid Consolidated financial statements give the
information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting
principles generally accepted in India including the IND AS, of
the consolidated state of affairs of the Group as at 31st March,
2019 and its consolidated financial performance including
consolidated other comprehensive income, its consolidated
cash flows and the consolidated changes in equity for the year
ended on that date.
Basis for Qualified Opinion
a) There is an under provision on long pending receivables
for Rs.1,865.41 Lakhs resulting in over statement of Trade
Receivables by Rs.1,865.41Lakhs and Trade Payables are
over stated by Rs.1,738.92 Lakhs as these accounts have
been classified as In-operative. However, the net impact of
the above on Profit & Loss Statement is not material.
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Annual Report 2018-19
b) The valuation of Investment in the Joint Venture under
equity method does not include original cost of investment
of Rs.73.50 Lakhs, resulting in understatement of
“Investment accounted for using the equity method” and
understatement of “Other Equity” by Rs.73.50 Lakhs.
We conducted our audit of the Consolidated financial
statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the consolidated financial
statements section of our report. We are independent of the
Group in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (“ICAI”) together
with the ethical requirements that are relevant to our audit of
the Consolidated financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our qualified opinion on the consolidated
financial statements.
Emphasis of Matters:
a) We draw attention to the matter in the Note No 2A to the
financial statements regarding immovable properties title
whereof are not yet conveyed in favour of the Company.
b) We also draw attention to the matter in the Note No 45 to
the financial statements regarding amounts utilized under
Grants received from Govt. of India, wherein Rs.1,585.39
Lakhs was accounted towards cost of material consumed
though as per the terms of the Grant the same were to be
utilized for creation of capital assets.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significant in our audit of the consolidated
financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated
 Corporate Overview Statutory Reports Financial Statements
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We
have determined the matters described below to be the key audit matters to be communicated in our report.
S.
Key Audit Matter
No.
1. Accuracy of recognition, measurement, presentation and
disclosure revenues and other related balances in view
adoption of IND AS 115 “Revenue from Contracts with
Customers” Revenue accounting standard applicable
from 1st April 2018.
Application of the new revenue accounting standard from
the current financial year involves certain key judgments
relating to identification of distinct performance obligations,
determination of transaction price of identified performance
obligation, appropriateness of the basis used to measure
revenue recognized over a period, and disclosures including
presentations of balances in the Consolidated financial
statements.
Estimated efforts is a critical estimate to determine revenue,
as it requires consideration of progress of the contract,
efforts incurred till date, efforts required to complete the
remaining performance obligation.
Refer Note 31 & 42 to the Consolidated financial statements.
2. Evaluation of uncertain tax positions
The Company has material uncertain tax positions including
matters under dispute which involves significant judgment
to determine the possible outcome of these disputes.
Refer Notes 50 to the Consolidated financial statements
Auditor’s Response
Principal Audit Procedures:
We assessed the Group’s internal process to identify the
impact of adoption of the new revenue accounting standard.
Our audit approach consisted testing of the design and
operating effectiveness of internal controls and procedures
as follows:
• Evaluated the design of internal controls relating
to implementation of the new revenue accounting
standard.
• Selected a sample of existing continuing contracts and
new contracts, and tested the operating effectiveness
of the internal control, relating to identification of the
distinct performance obligations and determination of
transaction price.
• Tested the relevant information, accounting systems and
change relating to contracts and related information
used in recording and disclosing revenue in accordance
with new revenue accounting standard.
• Reviewed a sample of contracts to identify possible
delays in achieving milestones, which require change
in estimated efforts to complete the remaining
performance obligations.
• Performed analytical procedures and test of details for
reasonableness and other related material items.
• We draw attention to Note 42 (F) to notes to account
regarding the Company’s inability in providing the
information with regard to the impact on the line items
had the erstwhile IND AS - 11 and IND AS -18 have been
continued to be adopted for the current year. However,
the same has no impact on the financial statements.
Principal Audit Procedures
Obtained details of completed tax assessments and
demands for the year ended March 31, 2019 from
management. We involved our internal experts to challenge
the management’s underlying assumptions in estimating
the tax provision and the possible outcome of the disputes.
Our internal experts also considered legal precedence and
other rulings in evaluating management’s position on these
uncertain tax positions. Additionally, we considered the effect
of new information in respect of uncertain tax positions as at
April 1, 2018 to evaluate whether any change was required
to management’s position on these uncertainties.
151

Information Other than the Consolidated financial
statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the other
information. The other information comprises the information
included in the Chairman’s statement, Directors Report and
Corporate Governance Report but does not include the
Consolidated financial statements and our auditor’s report
thereon. The Chairman’s statement, Directors Report and
Corporate Governance Report are expected to be made
available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
When we read the Chairman’s statement, Directors report and
Corporate Governance Report if we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance.
Management’s Responsibility for the
Consolidated financial statements:
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these Consolidated financial statements
that give a true and fair view of the consolidated financial
position, consolidated financial performance, consolidated
total comprehensive income, consolidated cash flows and
consolidated changes in equity of the Group in accordance with
the IND AS and other accounting principles generally accepted
in India. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate implementation
and maintenance of accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the Consolidated
financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, Board
of Directors of the Group are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
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Annual Report 2018-19
going concern basis of accounting unless management either
intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the
Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not
a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions
of users taken on the basis of these Consolidated financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our
 Corporate Overview Statutory Reports Financial Statements
opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the
Consolidated financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the Consolidated financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the
consolidated financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the Consolidated financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such
communication.
Other Matters
The consolidated financial statements include the group’s
share of net profit of Rs.416.39 Lakhs and loss under other
comprehensive income of Rs.20.12 Lakhs for the year ended
31st March 2019 as considered in the consolidated financial
statements in respect of jointly controlled entity. These financial
statements have been audited by other auditor whose reports
have been furnished to us by management and our opinion
on the consolidated financial statements, in so far it relates to
the amounts and disclosures included in respect of the jointly
controlled entity, and our report on terms of the section 143
(3) and section 143 (11) of the Act, in so far it relates to the
aforesaid Jointly owned entity, is based solely on the report of
the other auditor.
Our opinion on the consolidated financial statements and our
report on other legal and regulatory requirements below, is not
modified in respect of the above matters with respect to our
reliance on the work done and the reports of other auditors.
Report on Other Legal and Regulatory
Requirements:
1. As required by Section 143(3) of the Act based on our audit
and consideration of audit report of jointly controlled entity
as referred in “Other Matters” paragraph, we report, to the
extent applicable that:
a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit,
except for the effects of the matters described in the
Basis of Qualified Opinion paragraph;
b) Except for the possible effects of the matters described
in the Basis for Qualified Opinion paragraph above,
in our opinion proper books of account as required
by law have been kept so far as it appears from our
examination of those books and report of the other
auditor;
c) The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss (including other
comprehensive income), the Consolidated Cash Flow
Statement and the Consolidated Statement of Changes
in equity dealt with by this Report are in agreement with
the books of account and with the Returns received
from Branches not visited by us;
d) Except for the possible effects of the matters described
in the Basis for Qualified Opinion paragraph, in our
opinion, the aforesaid consolidated financial statements
comply with the Indian Accounting Standards specified
under Section 133 of the Act read with Companies
(Indian Accounting Standards) Rules 2015 as amended
and other accounting principles generally accepted in
India;
e) Being a Government Company, the Company is
exempted from the provisions of Section 164 (2) of
the Act regarding disqualification of Directors vide
Notification GSR-463(E), dated 5th June, 2015 issued
by the Government of India, Ministry of Corporate
Affairs;
f) We give our report in Annexure – A with respect
to the adequacy of internal financial controls over
financial reporting of the Company and the operating
effectiveness of such controls;
153
 Annual Report 2018-19

g) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules 2014, in our
opinion and to the best of our information and based
on the consideration of the report of other auditor on
separate financial statements as also the other financial
information of the jointly controlled entity as noted in
“Other matters” paragraph:
i. The Group has disclosed the impact of pending
litigations on its financial position in its Consolidated
financial statements – Refer Note No. 50 (a) (i) and
55D to the Consolidated financial statements;
ii. The Group has made provision, as required under
the applicable law and accounting standards, for
material foreseeable losses, on long term contracts
– Refer Notes 22, 24 and 29. The Group does not
have derivative contracts.
iii. There are no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company and the Jointly
controlled Company incorporated in India.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration No.S-2934

L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 13th September, 2019

154
 Corporate Overview Statutory Reports Financial Statements
Annexure-A to the Independent Auditors’ Report
on the Consolidated Financial Statements
Report on the Internal financial Controls of Section 143(3) (i) of the Act to the Members of Electronics Corporation of India
Limited (ECIL) (“the Company”), on the Consolidated financial statements for the year ended 31st March, 2019.
We have audited the Internal financial Controls Over financial
Reporting of Electronics Corporation of India Limited (ECIL)
(hereinafter referred to as the “Company”) as of 31 March 2019
in conjunction with our audit of the consolidated financial
statements of the Company for the year ended on that date.
We did not audit the financial statements of Jointly Controlled
Entity which has been audited by other auditor.
Management’s Responsibility for Internal
financial Controls
Respective Board of Directors the Company and Jointly
controlled entity are responsible for establishing and maintaining
internal financial controls based on the internal control over
financial reporting criteria established by the Company
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal financial Controls
over financial Reporting issued by the Institute of Chartered
Accountants of India (‘ICAI’). These responsibilities include the
design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring
the orderly and efficient conduct of its business, including
adherence to Company’s policies, the safeguarding of its
assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required
under the Companies Act, 2013 (“the Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s
internal financial controls over financial reporting based on
our audit. We conducted our audit in accordance with the
Guidance Note on Audit of Internal financial Controls Over
financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under
section 143(10) of the Act, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal
financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and whether such controls
operated effectively in all material respects. We have considered
the accounting manual, procurement manual and delegation of
powers for this purpose.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing the
risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained and
audit evidence obtained by the other auditor is sufficient and
appropriate to provide a basis for our audit opinion on the
Company’s internal financial controls system over financial
reporting.
Meaning of Internal financial Controls over
financial Reporting
A Company’s internal financial control over financial reporting is
a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
Consolidated financial statements for external purposes in
accordance with generally accepted accounting principles. A
Company’s internal financial control over financial reporting
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation
of Consolidated financial statements in accordance with
generally accepted accounting principles, and that receipts
and expenditures of the Company are being made only in
accordance with authorisations of management and directors of
the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition,
use, or disposition of the Company’s assets that could have a
material effect on the Consolidated financial statements.
Inherent Limitations of Internal financial Controls
Over financial Reporting
Because of the inherent limitations of internal financial controls
over financial reporting, including the possibility of collusion
or improper management override of controls, material
155

misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
Other Matters
Our aforesaid reports under Section 143 (3) (i) of the act on the
adequacy and operating effectiveness of internal controls over
financial reporting in so far as it relates to the Jointly controlled
entity, which is a Company incorporated in India, is based on
corresponding report of the other auditor.
Qualified opinion
According to the information and explanations given to us
and based on our audit, the following material weakness has
been identified in the operating effectiveness of the Company’s
internal financial controls over financial reporting as at 31st
March, 2019:
Operating procedures in respect of reconciliation, obtaining
confirmations and adjustment of trade receivables, trade
For RAMANATHAM & RAO
Chartered Accountants
Firm Registration No.S-2934
L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 13th September, 2019
156
Annual Report 2018-19
payables, advances paid and advances received need to be
strengthened.
Accounting and reconciliation of balance pertaining to Indirect
tax credits needs to be improved.
A ‘material weakness’ is a deficiency or a combination of
deficiencies, in internal financial control over financial reporting,
such that there is a reasonable possibility that a material
misstatement of the Company’s annual or interim Consolidated
financial statements will not be prevented or detected on a
timely basis.
In our opinion, the Company has, in all material respects,
maintained adequate internal financial controls over financial
reporting as of 31st March 2019, except for the effects/
possible effects of the material weakness described above on
the achievement of the objectives of the control criteria, the
Company’s internal financial controls over financial reporting
were operating effectively as of 31st March, 2019.
We have considered the material weakness identified and
reported above in determining the nature, timing, and extent
of audit tests applied in our audit of the 31st March, 2019
Consolidated financial statements of the Company, and
the material weakness does not affect our opinion on the
Consolidated financial statements of the Company.
 Corporate Overview Statutory Reports Financial Statements

Addendum to Directors’ Report

Company’s reply to qualification / observation of Statutory Auditors in the
Independent Auditors’ Report on Consolidated Financial Statements 2018-19:
Auditors’ Qualification / Observation Company’s Reply
There is an under provision on long pending receivables The Company reviewed the status of long pending Trade
for Rs.1865.41 Lakhs resulting in over statement of Trade Receivables and necessary provisions were made in the
Receivables by Rs.1865.41Lakhs and Trade Payables are books as at the end of 31.03.2019. However, certain balances
over stated by Rs1738.92 Lakhs as these accounts have been in respect of long term projects are yet to be realized and
classified as In-operative. However, the net impact of the above outstanding in the Debtors Ledger.
on Profit & Loss Statement is not material.
Inoperative trade payables for which payment
recommendations were not received from business divisions
and may have to be settled on receipt of claims from vendors
and are outstanding in the Creditors Ledger.

The pending balances will be reviewed and necessary

adjustment entries will be effected during the year 2019-20.
The valuation of Investment in the Joint Venture under equity The observation of Audit is noted and necessary adjustment
method does not include original cost of investment of Rs.73.50 entries will be effected during the year 2019-20.
Lakhs, resulting in understatement of “Investment accounted
for using the equity method” and understatement of “Other
Equity” by Rs.73.50 Lakhs
Operating procedures in respect of reconciliation, obtaining These being continuous in nature are reviewed periodically
confirmations and adjustment of trade receivables, trade and corrective actions are being taken. However, audit
payables, advances paid and advances received need to observations are noted for further improvement.
be strengthened. Accounting and reconciliation of balance
pertaining to Indirect tax credits needs to be improved.

157
 Annual Report 2018-19

Annexure – ‘F’

158
Corporate Overview Statutory Reports Financial Statements

159
Handing over of Dividend cheque for the year Shri Ashok Lavasa, IAS, Election Commissioner and Shri
2017-18 to Government Sudeep Jain, IAS, Deputy Election Commissioner visiting
EVM & VVPAT Production setup

Lt. Gen. P K Srivastava, DG –Artillery, visiting ECIL Vice Admiral K O Thakare (Retd.), DG ATVP & Vice Admiral
Production facilities S R Sarma, PD ATVP showing keen interest in EMI/EMC
Test Facility

Delegation from FERMI LAB, USA discussing about RF Mrs Sudha Krishnan, IA&AS, Member Finance, Atomic
Amplifier requirements with ECIL Energy Commission with ECIL Senior Officials
Chief General of Staff, Bangladesh (Security) showing German Delegates discussing about Power Converters
keen interest in Security Systems installed at ECIL with ECIL

ECIL Officials with Parliamentary Standing Committee on C&MD ECIL presenting ECIL capabilities at “Parmanu Tech
Empowerment of Woman 2019” organized by Department of Atomic Energy

Parliamentary Committee Meeting at ECIL on Science & Vice Admiral G Pabby, AVSM, VSM, Chief of Material
Technology discussing the supply chain mechanism of defence
products
 Compact Antenna Test Range Facility

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