About Bharat Electronics Ltd

Bharat Electronics Ltd is engaged in manufacture and supply of strategic electronic products primarily to Defense Services. The company exported a range of products and sub-assemblies exported includes LYNX II, radar warning receivers, composite communication system, night vision devices, versatile communication system (VCS), IFF Interrogator, LRF, X-Ray tube, radar finger printing system, ESM system, V/ultra high frequency (UHF) search receivers, shelters, printed circuit board (PCB) assembly, cable harness, components and mechanical assemblies. Bharat Electronics Ltd was set up at Bangalore, India, by the Government of India under the Ministry of Defence in the year 1954 to meet the specialized electronic needs of the Indian defence services. Over the years, then company has grown into a multi-product, multi-technology, multi-unit company serving the needs of customers in diverse fields in India and abroad. The company started with the manufacture of few communication equipment in the year 1956. They went on to produce Receiving Valves in the year 1961, Germanium Semiconductors in the year 1962 and Radio Transmitters for AIR in the year 1964. In the year 1966, the company set up a Radar manufacturing facility for the Army and in-house R&D. In the year 1967, they started manufacture of Transmitting Tubes, Silicon Devices and Integrated Circuits. In the year 1968, they established the PCB manufacturing facility. In the year 1970, the company started manufacture of Black & White TV Picture Tube, X-ray Tube and Microwave Tubes. In the year 1971, they set up facilities for manufacture of Integrated Circuits and Hybrid Micro Circuits. In the year 1972, they started manufacturing TV Transmitters for Doordarshan. In the year 1973, they started manufacture of Frigate Radars for the Navy. Under the government's policy of decentralization and due to strategic reasons, the company ventured to set up new Units at various places. In the year 1974, the company set up their second unit at Ghaziabad to manufacture Radars and Tropo communication equipment for the Indian Air Force. In the year 1979, they established their third Unit at Pune to manufacture Image Converter and Image Intensifier Tubes. In the year 1980, the company's first overseas office was set up at New York for procurement of components and materials. In the year 1981, the company set up a manufacturing facility for Magnesium Manganese Dioxide batteries at the Pune Unit. In the year 1982, they set up the Space Electronic Division at Bangalore to support the satellite programme. In the year 1983, the company took over an ailing Andhra Scientific Company (ASCO) as the fourth manufacturing Unit at Machilipatnam. In the year 1985, the company set up their fifth Unit in Chennai for supply of Tank Electronics, with proximity to HVF, Avadi. Also, they set up their sixth Unit at Panchkula to manufacture Military Communication equipment. In the year 1985, the company started manufacturing on a large scale Low Power TV Transmitters and TVROs for the expansion of Doordarshan's coverage. In the year 1986, the company set up their seventh Unit at Kotdwara to manufacture Switching Equipment. They set up their eighth Unit to manufacture TV Glass Shell at Taloja (Navi Mumbai). Also, they set up their ninth Unit at Hyderabad to manufacture Electronic Warfare Equipment. In the year 1987, the company set up a separate Naval Equipment Division at Bangalore to give greater focus to Naval projects. In the year 1988, they established first Central Research Laboratory at Bangalore to focus on futuristic R&D. In the year 1989, the company started the manufacture of Telecom Switching and Transmission Systems. Also, they set up the Mass Manufacturing Facility in Bangalore and the manufacture of the first batch of 75,000 Electronic Voting Machines. In the year 1990, the company entered an agreement Delft of Holland for setting up first joint venture company, BE DELFT. Later, the joint venture company became a subsidiary of the company with the exit of the foreign partner and was renamed BEL Optronic Devices Ltd. In the year 1992, the company established their second Central Research Laboratory at Ghaziabad. Also, the company made their first disinvestment (20%) and their shares were listed on the Bangalore and Mumbai Stock Exchanges. During the year 1993-94, the company's Units obtained ISO 9000 certification. In the year 1994, the second disinvestment (4.14%) took place. In the year 1997, GE BEL, the joint venture company with GE, USA, was formed. In the year 1998, the company set up their second overseas office at Singapore to source components from South East Asia. In the year 2000, the company's shares were listed in the National Stock Exchange. In the year 2002, the company became the first defence PSU to get operational Mini Ratna Category I status. In June 16, 2007, the company inaugurated the state-of-the-art, new building of the Central Research Laboratory of the company at Ghaziabad. They also inaugurated the Near Field Antenna Development and Test Centre at BEL's Ghaziabad Unit. In June 22, 2007, the company was conferred the prestigious Navratna status based on their consistent performance. The company has bagged the IETE Corporate Award in August of the year 2007 for performance excellence in the field of software development. During the year 2007-08, the company executed important orders which include STARS V Frequency Hopping, a VHF Manpack Transreceiver; Advanced Land Navigation System for Tanks, a Command & Control System, Command Information and Decision Support System, Installation of LINK II System on board Ship, Gunners Main Sight, EW Systems, Flycatcher Radar, Surveillance Radar Element, Integrated Observation Equipment, Hand Held Thermal Imagers, Central Acquisition Radar, Passive Night Vision Device (both monocular and binocular), and Doppler Weather Radar for prediction of meteorological data. These equipments have been supplied to a wide range of Customers including the Army, Navy, Air Force, Paramilitary forces, Indian Meteorological Department and others. The company set up a new DF Range test facility at the Hyderabad Unit for testing, calibration and evaluation of ESM Systems. During the year, the company signed MoUs with aerospace majors, Lockheed Martin &Boeing and global defence companies EADS & Northrop Grumman and other companies like Raytheon, Honeywell to exploit opportunities arising out of offsets. They signed an MoU with Elisra, Israel, for working on various airborne electronic warfare programmes for the Indian defence. Also, they signed an MoU with IAI-Malat for working in the field of Unmanned Aerial Vehicles. The company signed an term sheet with Rafael, Israel, which is expected to lead to the formation of a joint venture, for missile electronics and guidance technologies. Also, they signed an MoU with Elbit Systems, Israel for co-operation in the area of Wireless Local Area Network. During the year 2008-09, the company signed an MoU with Bharat Heavy Electricals Ltd, to explore formation of a Joint Venture for solar photovoltaic business. They signed an MoU with Boeing to jointly develop an analysis and experimentation centre in India to offer customers the ability to make better-informed decisions in modernising the Country's defence forces. They signed an MoU signed with Astra Microwave Products Ltd, for setting up of a Joint Venture for microwave components. They signed an MoU with Selex Galileo for collaboration on Electronic Warfare programmes. Also, they company was selected by Northrop Grumman Corporation for the manufacture of components for Fire Control Radar for its Fighter Aircraft programme. During the year 2009-10, the company introduced some new products namely, Integrated Air Command and Control System, Advanced Naval Gun Fire Control System for IN Ships, Gap Measuring Device Mk III, Perimeter Security Jammer, Frequency Hopping HF Transreceivers for paramilitary forces, Data Facility Kit for VHF radios and V / UHF Protocol Analyzer. The company set up a state-of-the-art integrated manufacturing facility for assembly, inspection and testing of Digital Flight Control Computer (DFCC), all under one roof. During the year 2010-11, the company supplied some of the important equipment / systems to customers, which includes 3-D Central Acquisition Radar (Rohini), Surveillance Radar Element, Artillery Combat Command Control System, Battle Field Surveillance Radar, L-Band Surveillance Radar, Fire Control Systems, Shipborne Electronic Warfare System, Integrated Communication Network System for ships, Mobile Radar band Electronic Intelligence System, Mobile Communication Terminal, Handheld UHF Radios, Secure Communication Network, Passive Night Vision Weapon Sight and Doppler Weather Radar. In December 2010, the company handed over four numbers of India's first wholly indigenous Nuclear, Biological and Chemical (NBC) Recce Vehicles, designed and developed by DRDO and integrated with NBC instruments at BEL's Pune Unit to Indian Army. The NBC Recce Vehicle surveys, detects, identifies and marks areas of radiological and chemical contamination. In December 24, 2010, the company inaugurated a modern D&E facility at BEL's Hyderabad Unit, which is equipped with Embedded Systems Lab, Software Development Lab, Communication Systems and Integration Labs, Video Conferencing, etc. In February 8, 2011, the company inaugurated the company's Product Support Centre at Kalamassery in Kochi, Kerala to provide waterfront support for the Southern Naval Command and to support outsourcing of Naval system projects to BEL's outsourcing partner, KELTRON. The company is in the process of signing a Technology Collaboration Agreement (TCA) with Optelian International Corporation for establishing a long-term partnership between the two Companies for the manufacture and design of optical networking systems in India. BEL expects to address a business of about Rs 60,000 lakh in the next five years from this initiative. The company is in discussions with a reputed foreign OEM for forming an Indian Joint Venture in the area of civilian radars & select defence radars. The business plan for setting up a JVC with BHEL for manufacture of Solar PV wafers, cells and modules was finalized. The company is working on establishing a Company for the design, development and manufacture of RF and Microwave components and subsystems. In 2012, Bharat Electronics Limited India (BEL) signed an MoU with Israel Aerospace Industries (IAI) for cooperation on future Long Range Surface to Air Missile (LRSAM) Ship-defence Systems'. In 2014, the company has decided to form a Joint Venture Company (JVC) with Thales Air Systems SA, France and Thales India in Radar Business Area. In 2015, The Company has allotted the Bonus Shares to its shareholders in the Ratio of 2:1. On 31 May 2016, Bharat Electronics announced that it will inaugurate an 8.4 MW wind energy power plant at Hanumanthappa site, Harappanahalli, in the Davangere district of Karnataka for captive consumption of energy for its factory at Bengaluru on 2 June 2016. The Board of Directors of Bharat Electronics at its meeting held on 5 August 2016 approved the proposal to buyback of not exceeding 1.66 crore equity shares of the company, representing 6.93% of the total number of equity shares in the paid-up share capital of the company at a price of Rs 1,305 per share payable in cash for an aggregate consideration not exceeding Rs 2171.15 crore, which is not exceeding 25% of the aggregate of the fully paid-up share capital and free reserves as per audited accounts of the company for the financial year ended 31 March 2016 from all the equity shareholders of the company, as on the record date, on a proportionate basis through the Tender Offer route. The Board of Directors noted the intention of the Promoter of the Company to participate in the proposed Buyback. On 17 September 2016, Bharat Electronics announced that foundation stone for the company's Advanced Night Vision Products factory at Nimmaluru, Krishna district, Andhra Pradesh will be laid on 19 September 2016. It will be the largest such facility in the country once it is commissioned, covering an area of over 50 acres. The Advanced Night Vision Products factory will enable Bharat Electronics to expand its Electro-Optics business and carry out manufacturing and integration for the ongoing and upcoming projects. The Board of Directors of Bharat Electronics at its meeting held on27 January 2017 approved sub-division of existing one equity share of Rs 10 each face value fully paid-up into 10 number of equity shares of Re 1 each face value. On 14 February 2017, Bharat Electronics Ltd (BEL) unveiled a new Weapon Control system - Remote Controlled Weapon Station (RCWS)/Air Defence Weapon Station (ADWS) for 12.7 mm Gun of MBT Arjun Mk II battle tank, at Aero India 2017. The RCWS is an improvised version of the manually operated air defence gun. On 15 February 2017, Bharat Electronics announced that Elbit Systems Electro-Optics Elop Ltd (ELOP), Israel, has awarded the company an Offset Contract for the supply of 10 numbers of CoMPASS Systems for use in the Light Combat Helicopters (LCH) being manufactured by Hindustan Aeronautics Limited (HAL). BEL received the CoMPASS Offset Contract at Aero India 2017, Bengaluru. BEL has entered into a Technical Collaboration Agreement with ELOP for the joint production and D-Level maintenance of Compact Multi-Purpose Advanced Stabilised System (CoMPASS, the trade name for EO/IR payload) for the helicopter programmes. BEL has absorbed transfer of technology (ToT) for production and maintenance of CoMPASS in India. The CoMPASS is a day-and-night surveillance system that includes a colour TV daylight camera, 3rd Generation 3-5 f m Forward Looking Infrared (FLIR) sensor, Laser Target Designator and Range Finder (LTDRF) and automatic tracking capabilities, as well as command and control capabilities. On 22 and 23 February 2017, the Government of India completed divestment of 5% stake in Bharat Electronics through Offer for Sale via the stock exchanges mechanism. Post the stake-sale, Government of India's stake in the company declined to 69.41% from 74.41%. The Board of Directors of Bharat Electronics at its meeting held on 10 August 2017 approved the proposal for issue of bonus shares to the existing shareholders of the company in the ratio of 1:10. The Board of Directors of Bharat Electronics at its meeting held on 30 January 2018 approved the proposal to buyback of not exceeding 2.03 crore equity shares of the company, representing 0.83% of the total number of equity shares in the paid-up share capital of the company at a price of Rs 182.50 per equity share payable in cash for an aggregate consideration not exceeding Rs 372.25 crore, representing 5% of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone financial statements of the company for the financial year ended 31 March 2017 from all the equity shareholders of the company on a proportionate basis through a Tender Offer route. The Board of Directors noted the intention of the Promoter of the Company to participate in the proposed Buyback. During the FY2018, 2,03,97,780 equity shares with face value Re.1 was bought back for Rs 182.50 per share at a premium of Rs 181.50 per share, resulting into a total cash outflow of Rs 37,226. On 2 April 2018, Bharat Electronics announced that it has achieved landmark turnover of more than Rs 10000 crore (Provisional & Unaudited) during 2017-18, sustaining the double digit growth over the previous year's turnover of Rs 8825 crore. Bharat Electronics Limited (BEL) and Larsen & Toubro signed an MoU on 11 April 2018 at Defexpo 2018 in Chennai to share their expertise in design, development, engineering and manufacturing to develop and produce products and systems to meet the requirement of the defence services as well as for export markets. BEL and L&T have agreed to explore and address defence products/systems for the Indian Defence Services as well as export opportunities. BEL has expertise in design, development, engineering, manufacture of Radar & Weapon Systems, NCS and Communications systems, Electronic Warfare & Avionics, Naval Systems, Electro-optics products, Tank Electronics & Gun Systems, Satcom systems, Strategic Components and Civilian products, while L&T has expertise in design, engineering and manufacture of Defence systems, Platforms and Weapon delivery, Armoured platforms and Fire control systems, Military Communication, Naval Equipment, Warships & Submarines. The MoU sets to define the roles and responsibilities of both the companies to cooperate and work in partnership mode for select programmes and thus give a boost to indigenous defence production. This collaboration will support the Make in India mission. On 11 April 2018, Bharat Electronics announced the launch of eight new products at Defexpo 2018 in Chennai. The products launched are - 100 Mbps Radio, Secure Military Wireless Local Area Network, Multi-Function Hand Held Thermal Imager, Long Range Surveillance System, Chemical Agent Monitor (CAM), Multi-Purpose Reflex Weapon Sight, Light Weight Composite Shelter and Mine Field Recording System. On 12 April 2018 at DefExpo 2018 in Chennai, Bharat Electronics Limited (BEL) and Mahindra Defence Systems Limited committed to a long-term partnership through a MoU, to jointly address emerging opportunities in the domestic market under the policy initiatives of the Government of India, like Make in India and the Export Promotion Policy of the Ministry of Defence to target the export market. BEL has the expertise in design, development, engineering, manufacture of Radar & Weapon Systems, NCS and Communications systems, Electronic Warfare & Avionics, Naval Systems, Electro-optics products, Tank Electronics & Gun Systems, Satcom systems, Strategic Components and select Civilian products, while Mahindra Defence has the expertise in manufacture, maintenance of Defence equipment, Light Military Vehicle, Armoured Vehicles, Aerospace/Aviation Platforms, Simulators, Electronics, Airborne Equipment, Naval Equipment and materials for Defence sector. BEL Optronic Devices Limited (BELOP), engaged in the business of manufacturing of Image Intensifier Tubes, is a wholly owned subsidiary of BEL. The Company has made further investment to the tune of Rs 1,449.37 Lakhs (589,176 equity shares of Rs 100/- each at a premium of Rs 146/- per share) during the year 2018-19 in the equity shares of BELOP by subscribing to right issue made by BELOP. During the year 2018-19,the Company has spent Rs 67,359 Lakhs as part of CAPEX investment towards modernization of plant & machinery, test instruments, R&D investments, infrastructure up-gradation etc. The company bagged Business Leader of the Year' Award (Aerospace & Defence) 2019. BEL Chennai Unit secured the CII Total Cost Management (TCM) Level 3 award. BEL Optronic Devices Limited (BELOP), engaged in the business of manufacturing of Image Intensifier Tubes, is a wholly owned subsidiary of BEL. The Company has made further investment of Rs 2,832.69 Lakhs (11,65,716 equity shares of Rs 100/- each at a premium of Rs 143/- per share) during the FY2020 by subscribing to right issue for equity shares made by BELOP. During the year 2019-20, Company has spent Rs 51,297 Lakhs as part of CAPEX investment towards modernization of plant & machinery, test instruments, R&D investments, infrastructure up-gradation etc. The Company's operations were shut down from the last week of March 2020 following the nationwide lockdown imposed by the Government of India in view of the COVID-19 pandemic. The Company's plants have since resumed operations in line with the various directives of the Government in a phased manner.

Bharat Electronics Ltd Chairman Speech

MESSAGE FROM CHAIRPERSON

DEAR SHAREHOLDERS,

In multiple ways, the year 2020-21 was a tumultuous and challenging year for us. The onslaught of Pandemic has shaken the humankind and economies across the world, including domestic economy. In this changed scenario, I would like to share the achievements and financial highlights of your Company during the past year.

BEL has always been at the forefront to serve the nation through its multiple products and innovative solutions. BEL is in constant pursuit of exploring new vistas and challenges in both Defence and Non-Defence segments, leveraging its core strength and expertise in the domain of Defence Electronics. During the Covid-19 crisis, BEL rose to the nation's call for supplying emergency medical equipment and within a short span of time, BEL manufactured and delivered 30,000 ICU grade ventilators to the Government of India. With the dedication of our workforce and support from stakeholders, we emerged stronger than ever before to meet the challenges.

During the financial year 2020-21, there were considerable challenges in the changing business environment we operate. Despite these challenges, your Company has achieved significant growth in revenues with greater emphasis on R&D, technology updation and constant infrastructure modernization.

Your Company has continued to maintain its leadership position in supplying equipment / systems to Defence Forces and is on a steady growth path. I take this opportunity to share with you the performance highlights during the past year and the future outlook for the company.

HIGHLIGHTS OF THE YEAR

Your Company achieved a turnover of Rs. 13,81,816 Lakh during 2020-21 against Rs. 12,60,776 Lakh in 2019-20, thereby registering a growth of 9.60%. BEL achieved an export sale of 51.93 Million USD during the year. Some of the countries, where your Company's products were exported include USA, France, Israel, Germany, Switzerland, Sweden, China, Republic of Armenia, Maldives, Indonesia, Srilanka,

Turkey, Bhutan and SEZs. The major Products/ Systems exported during the year include Coastal Surveillance System, Data Link II, EOS CoMPASS, IFF-I Mk-XI, Radar Finger Printing System, Communication Equipments, TR Modules, Vacuum Interrupters, Mechanical Parts, Cable Looms, Radar Spares, Sub Assembly of Radar & EW Systems, Assemblies and Sub-Assemblies of Missile systems, Shelter Spares, Electronic Fuzes, etc.

All the nine manufacturing Units of the Company have performed well. The Profit 2020-21 as against Rs. 1,79,383 Lakh in 2019-20 registering a growth of 15.14%. The Net Worth of the company has increased from Rs. 9,85,294 Lakh in year 2019-20 to Rs. 10,80,789 Lakh in 2020-21. Turnover per Employee has increased from Rs. 135.87 Lakh in 2019-20 to Rs. 150.66 Lakh in 2020-21. At Rs. 53,43,300 Lakh (as on 1st April 2021) the order book continues to be healthy and also good order inflow projections are expected in the next 2-3 years.

R&D has been the main focus area of your Company, aimed at increasing indigenisation and value addition in our products / systems. The total investment in R&D as a percentage of turnover during the year was 6.32%. It is our constant effort towards indigenous development that has led us to achieve 79% of our turnover from indigenous products. 21% of our revenues were generated from products manufactured through ToT from foreign OEMs. Defence being the mainstay of the Company, has contributed 78% of Sales revenue in 2020-21 as against 82% in 2019-20, with the balance 22% coming from the non-defence segment.

Your Company has always been in forefront in continuously developing innovative and quality products for customers.

Some of the major products/systems introduced during

2020-21 include Compact Tracking Radar (CTR) for Lynx U2, Gun Fire Control System (GFCS), Variants of Software

Defined Radios, Battle Field Surveillance Radar (BFSR)

Upgrade, Composite Communication System (CCS) MK-II, Electronic Counter Measure (ECM) Jammer MK-III, Counter Radio Controlled Improvised Explosive Devices (RCIED) equipment, Samyukta Electronic Warfare Non-Communication entities, Integrated Air Command and

Control System (IACCS) BatcRs. 2, Panoramic Night Vision Goggles (NVG) for Aviation, Artillery Combat Command and Control System Phase III, Digital Beam Former for Airport Surveillance Radar, Coastal Surveillance System (CSS) Phase 2, Encryptors, Link Encryptor for Versatile Environment (LIVE) MK-II and Secure Multi Interface Link Encryptor (SMILE) MK-

II, Adaptive Traffic Control System (ATCS) for smart cities, Electric Gun and Turret Drive System for Armoured Fighting Vehicles (AFV), Li-ion batteries for Two/Three-wheeler Electric Vehicles (EV), Train Simulator for Mumbai Monorail, AfterTaxis Rs.2,06,542Lakhfor Motion based vehicle driving simulator for Bus, Indigenous Airport Surveillance Radar (ASR) and Mono-pulse Secondary Surveillance Radar (MSSR), Re-engineered RAWL-02-MK-II-A Radar, IFF MK-XII(S) Interrogator, AI enabled solutions for various applications like Gesture recognition for surveillance applications, Automatic Information Extraction & Synthesis,

Traffic Analytics, Activity inference for enemy target using templating for air operations (C4I) etc.

Your Company has received orders worth about Rs. 15,27,800 Lakh during the year. Major Orders received include AFNET Performance & Security Enhancement and SATCOM Network, Ventilators including Services, Naval Fire

Control System, Software Defined Radio, Advance Torpedo Defence Systems, Digital Mobile Radio Relay etc.

Your company has been granted three (3) patents in 2020-21 and with this the total number of patents granted stands at thirteen (13). As many as 97 technical papers were published by scientists and R&D engineers of BEL in various National and International journals / seminars/ conferences. Your Company has filed 162 IPRs (including 84 Patents) during

2020-21.

Some of the performance highlights of your Company during the year are:

• Established Advance Torpedo Decoy System (ATDS) Maareech Integration Facility, Bangalore

• Export Manufacturing SBU has received ISO 13485

Medical Devices QMS certificate for ICU Ventilators.

• Creation of new SBU to address the opportunities in the “Software as a Service” domain.

• BEL has filed 162 Intellectual Property Rights (IPR) applications in the areas of Embedded Systems, Electro optics, Software, Communication, Radar, Network & Communications etc.

• BEL has empanelled 279 partners towards Collaborative R&D which includes 31 collaborative R&D partners, 178 design service providers, 37 Consultants and 39 Production service providers.

• Software SBU has received ITSMS ISO/IEC 20000-1

Certification.

• BEL received 12 Green Channel Certificate for 41

Products covering 10 Units/SBUs of BEL.

You will be happy to know that your Company has received several accolades during the Year, some of the noteworthy being:

• Times Ascent's CEO with HR Orientation Award

• International Aerospace Award

• PSE Excellence Award

• The Policy Times' appreciation Award

FUTURE OUTLOOK

The prevailing turbulence in the global business environment has been impacting business and posing a major threat for growth. To combat the risks associated, your company is foraying into new business areas and keeping pace with fast changing technological advancements besides enhancing operational efficiency. Also, the Government's emphasis on ‘Make in India' and ‘Atmanirbhar Bharat' initiatives in Defence sector provides a great opportunity for your Company to enhance indigenization efforts and address the emerging opportunities in the Indian Defence sector.

BEL is targeting a healthy growth of 12-15% during 2021-22. Segments like Radar and Missile Systems, Communication and Network Centric systems, Anti-Submarine Warfare & Sonar Systems, Tank Electronics, Gun upgrades, Electro Optic systems and Electronic Warfare & Avionics systems will continue to drive the Company's growth in the coming years. Along with this, the Non-Defence segment businesses like Homeland Security, Smart Cities, EVMs and other diversification Company.

To retain the leadership position in strategic electronics your Company has evolved various strategies and has initiated plans to rise above competition and maintain a technological edge.

Your Company has always been giving greater emphasis towards indigenous development of Systems and Services. In this regard, your Company is constantly focusing on enhancing capabilities and competitiveness through indigenisation, diversification, continuous modernization, creating several world-class facilities for R&D, Testing & Production, Skill development and outsourcing to Indian industries with increased thrust on MSME sectors. In the non-defence segment your Company is pursuing business in the field of Homeland Security solutions, Smart Cities, Electric

Vehicles (Li-ion & Fuel Cells, Charging Stations etc.), Space grade Solar Cells, Solar Business, Space /Satellite Electronics, Space Launch Vehicles, Satellite Communication Services, Satellite Assembly & Integration, Network & Cyber Security, Railways & Metro Solutions, Solutions for Civil Aviation sector including Air Traffic Controller Radars, Anti Drone systems,

Software as a Service, Smart Meters, Atmospheric Water Generator, a range of Medical Electronics & Healthcare solutions, Telecom Products, PNVDs, Composites, etc.

The future of your Company looks promising as well as challenging. The Defence Sector is being opened up for private sector participation with evolution of Defence Procurement Procedure. In this changing business scenario, your company is focusing on enhancing interaction at various levels and building long term relationships with customers, emerging Strategic Partners and other key stake holders in the Indian defence industry as a trusted and committed partner. Your company has taken several mitigation measures to reduce the impact of Covid-19 on the performance of the Company.

Defence Acquisition Procedure 2020 (DAP 2020) has been released with several improvements focusing on Self-reliance, wherein Indigenisation and Innovation is enabled through processes of Make, Design & Development and Strategic Partnership. Your company has always been working on providing indigenous solutions to the customers. This creates an opportunity to provide import substitution and helps to promote innovative solutions for defence equipment. Your Company has also responded to many

‘Make-II' projects which are in line with BEL's business.

The Focus is on building excellence through sustained growth in all the segments we operate. For that, it is important for BEL to stay abreast with new technology and develop new products, regularly meet the requirements of customers and provide cost effective & innovative solutions. Thrust on R&D across the company will continue with roadmaps drawn for future products, new technology areas, intellectual property creation, acquisition of key technologies and filing of patents.

Your Company is also laying greater emphasis on working closely with DRDO labs, Research institutions and academic institutions as well as with niche technology companies & consultants for development of new products and systems. Your Company is working on emerging technologies such as Artificial Intelligence, Big Data Analytics, Internet of Things, 5G Wireless communication, Robotics & Computer vision, Augmented & Virtual Reality, Quantum Cryptography etc. under the R&D collaboration with academia and start-ups.

Some of the major projects planned for execution during2021-22 are Long Range Surface to Air Missile System (LRSAM), Integrated Air Command & Control System (IACCS), Coastal Surveillance System (CSS)-Phase II, Kerala Fibre Optic Network (K-FON), Weapon Locating Radar, Integrated Perimeter Security System (IPSS), Samyukta EW Upgrade System, SAGAR III Systems, ACCS, HUMSA UG Systems, Lynx U1 Mod, Shakti Ph-III, Electronic Voting Machines (EVM) etc.

On the Export front, the order book, as on 1st April 2021, stands at US $ 125.93 Million including offset orders of US $ 46.35 Million. To give greater thrust to exports, your Company has opened marketing offices at Oman, New York, Singapore, Vietnam & Sri Lanka and has plans to open offices in other countries. Your Company also strives to increase business opportunities in South East Asia, Europe, Middle East, Africa and North America by incessant engagement with customers and is also working closely with other Indian Companies & local partners in respective countries to maximize geo-strategic reach and increase its global footprint.

CSR INITIATIVES

Your Company has undertaken various CSR programmes/ initiatives/projects as per the Company's Corporate Social Responsibility Policy, in line with Section 135 & Schedule VII of the Companies Act, 2013 & amendments thereof. Your Company has spent Rs. 2,279 Lakh in key sectors like Healthcare, Nutrition, Education and Vocational Skill Development. Your Company is diligently supporting the country's fight against COVID-19 and was one among the few CPSEs chosen by the Department of Public Enterprises (DPE) to supply Cold Chain Equipment for the COVID-19 Vaccination program of the Government of India.

GOVERNANCE AND SUSTAINABILITY

Your Company takes pride in constantly adopting and maintaining the highest standards of values and principles. A detailed report on compliance of the guidelines on Corporate Governance, as required by the SEBI (LODR) Regulations, 2015 and the guidelines issued by the Department of Public Enterprises for CPSEs, forms part of the Board's Report.

Your Company has received ‘NIL' comments certificate from the C&AG for the year 2020-21.

The corporate performance of BEL, which is measured in terms of the economic, environmental and societal parameters augurs well to reinforce the image of BEL as a socially responsible corporate entity. At BEL, sustainability endeavours are encompassed in its commitment to behave ethically and contribute towards economic development while improving the quality of life of its workforce, their families and the local community and society at large. The philosophy of recycle, reuse and reduce will also continue to be implemented to create a greener future.

ACKNOWLEDGEMENTS

I am grateful to the Board of Directors and members of the Management Committee for their unwavering support and guidance. Ministry of Defence and Defence Services have been continuously providing valuable guidance and support, bestowing their confidence in us. I deeply appreciate our shareholders, esteemed customers and business associates for providing opportunities to earn their confidence.

The dedication, resilience and commitment of our employees and officers at all levels continues to be the major strength of your Company by which we continue to deliver the solutions to constantly meet the Customers' requirements. We shall make continuous efforts to launch new initiatives and build on these strengths to face future challenges and sustain the momentum for profitable growth in the coming years.

Thank you for the continuous support to Bharat Electronics Limited.

With best wishes,
Yours Sincerely,
Mrs Anandi Ramalingam
Chairman and Managing Director	Bengaluru
(Additional Charge)	31 August 2021

   

Bharat Electronics Ltd Directors Reports

To the Members,

Your Directors take pleasure in presenting their Report and the Audited Financial Statements for the financial year ended 31 March 2021 together with the reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.

Financial Results and Performance Highlights

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

(Rs. in Lakh)

Particulars	2020-21	2019-20
Value of Production	13,94,749	12,34,833
Turnover	13,81,816	12,60,776
Profit Before Depreciation, Interest and Tax	3,30,722	2,83,207
Finance Cost	608	326
Depreciation & Amortisation	36,633	34,964
Profit Before Tax	2,93,481	2,47,917
Provision for Tax	86,939	68,534
Profit After Tax	2,06,542	1,79,383
Other Comprehensive Income / (Loss)	(8,709)	(3,814)
Total Comprehensive Income	1,97,833	1,75,569
Dividend paid	1,02,337	75,534
Tax on Dividend	-	15,439
Transfer to General Reserve	40,000	40,000
Other Equity (Including Reserves & Surplus)	10,56,423	9,60,928
Net Worth	10,80,789	9,85,294
Earnings Per Share (in H)	8.48	7.36
Book Value Per Share (in H)	44.36	40.44

Distribution of Value of Production for 2020-21 is given below:

(Rs. in Lakh)

Particulars	Amount	Percentage
Materials	7,95,715	57.05%
Employee Cost	1,94,068	13.91%
Other Expenses (Net)	74,852	5.37%
Depreciation & Amortisation	36,633	2.63%
Provision for Tax	86,939	6.23%
Profit After Tax	2,06,542	14.81%
Total	13,94,749	100.00%

The Company's turnover for the year 2020-21 increased to RS. 13,81,816 lakh from RS. 12,60,776 lakh in 2019-20, registering a growth of 9.6%. The Profit After Tax (PAT) for the year is RS. 2,06,542 lakh compared to RS. 1,79,383 lakh in the previous year. Turnover from indigenously developed products was 79%. Contribution for Defence supplies was at 78% of the turnover in 2020-21 compared to 82% in the previous year.

Dividend

In pursuant to Regulation 43A of the SEBI (LODR) Regulations, 2015, the Board of Directors of the Company formulated a Dividend Distribution Policy keeping in view the provisions of the SEBI (LODR) Regulations, 2015, the Companies Act, 2013, Guidelines issued by the SEBI, DPE, DIPAM, Ministry of Finance and other Guidelines to the extent applicable to the Company. The Policy is placed on the Company's website at https://www.bel-india.in/ ContentPage.aspx?MId=17&CId=527&LId= 1&link=527 The Board of Directors has recommended a final dividend of RS. 1.20/- per equity share (120%), amounting to Rs. 29,239.12 lakh for the year 2020-21. The first interim dividend of RS. 1.40 per equity share (140%) and the second interim dividend of RS. 1.40 per equity share (140%) has been paid to the shareholders for the financial year 2020-21. Thus, the total dividend for the year 2020-21 is RS. 4.00/- per equity share (400%), amounting to RS. 97,463.72 lakh.

Transfer to Reserves

An amount of RS. 40,000 lakh has been transferred to General Reserves for the financial year 2020-21

Share Capital

The Company's authorised capital was RS. 25,000 lakh (250,00,00,000 equity shares of RS. 1/- each) and paid-up share capital was RS. 24,366 lakh as on 31 March 2021. There was no change in the authorised/paid-up share capital of the Company during the year.

Major Orders Executed

Major Defence and non-Defence Projects executed during the year are part supply of Long Range Surface-to-Air Missile (LRSAM) System, ICU Ventilators, Integrated Air Command and Control System (IACCS), Akash Missile System, Thermal Imagers for tanks, Vehicle based Shelters network (SAMYUKTA), various Radars, AFNET performance & security enhancement & SATCOM Network, Smart City Projects, Kerala Fibre Optic Network (K-FON), upgrade of the communication system (SHAKTI PH III), Coastal Surveillance System (CSS Phase II) and the Naval Airfield Integrated Security System (NAISS).

Exports

Your Company has been focusing increasingly towards harnessing the export potential of Defence electronics products & systems, including Homeland Security Solutions, Border Protection systems and state-of-the-art systems & solutions and professional electronics to address the civilian market, which represents its core area of business.

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

BEL is also exploring civil and medical equipment market in developed, developing & third world countries, with product and solutions like Artificial Intelligence-based solutions, software development for various civilian projects, IOT Sensors, Sensor Fusion and Management Systems, Unified Data Analytics Platform System, Smart Hub, security package for VVIP areas, Smart Cities, Critical infrastructure development, solar power generation projects etc.

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

BEL is focusing primarily on the various ‘Make in India' programmes. It has offered its various products and services to major Platform OEMs and their Tier I suppliers.

This has helped BEL in leveraging partnerships for co-development, co-production and similar arrangements with various OEM's to get the manufacturing of the products at BEL and utilization of services of BEL not only for Indian programs but also for global requirements.

Despite the Covid-19 pandemic worldwide, the Company achieved the export order acquisition of US $56.61 million during 2020-21, from various global customers viz., the US, France, Switzerland, Israel, Sweden, ASEAN countries,

Mauritius and Sri Lanka. With this, the export orders as on 1 April 2021 stood at more than US$ 125 million.

The Company achieved an export sale of US $51.93 million during 2020-21, to various countries, viz., Switzerland, the US, France, Israel, Sweden, Seychelles, Maldives, Sri Lanka, ASEAN countries and the various SEZs. Major products / systems exported were Coastal Surveillance Systems Radar, Sub Systems of Radar and EW Systems, Data Link II, Cable looms, mechanical parts, communication equipment, IFF-Interrogator, Radar Finger Printing System, EOS, Power Source, Radar Spares, etc.

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

Initiatives taken to increase exports by development of new markets for products & services during the financial year 2020-21:

Major initiatives taken in 2020-21

Exim / Buyer's Credit Project - Pursued market leads for various countries.

Collaborated with new local partners in Kenya,

Chile, Suriname, Malaysia, Nepal, Bangladesh.

Pursued G2G opportunities in various neighbouring countries.

• Increased contract manufacturing portfolio by increasing empanelment of BEL as global supply chain partner with OEMs.

• Explored businesses in the field of turnkey solutions based on software capabilities and Artificial Intelligence under secure environment.

• Strategic alliance with the Indian platform manufacturers and initiating discussions and processes for signing agreements with major Indian platform manufacturers to create strong support within the country

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

• Efforts towards increasing participation in Government tenders in foreign countries.

BEL regularly interacts with the Ministry of External Affairs, the Indian High Commission, the Defence Attach, and MoD, India for supply of products/systems under the Line of Credit (LoC)/grants to friendly countries to India.

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

• Coastal Surveillance System

• Naval Systems and Solutions

• Radar Systems and Solutions

• Upgradation of Naval Radar and Sonars

• Contract Manufacturing

• Communication Equipment's

• Electronic Warfare Avionics

• Solar Power Plants and Equipment's

• Civilian and Software solutions

The following were the scope for offset business during 2020-21:

• Data Link II

• IFF – Interrogator

• Radar Finger Printing Systems

• EoS CoMPASS

• EW & Radar Sub-Assemblies for Thales, France

• Missile Systems and Solutions

• Cable Looms

MoU with the Government

Your Company has been signing a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India. The MoU rating for 2019-20 and 2020-21 is under review by the Government.

Order Book Position

The order book of the Company as on 1 April 2021 is at around RS. 53,434 crore. The order book comprises major programmes like Long Range Surface-to-Air Missile System (LRSAM), the Akash Missile Systems, Command & Control System, Battle Field Surveillance Systems, Fire Control Systems, Software Defined Radios, Coastal Surveillance Systems, Advance Composite Communication System, Naval Systems, Electronic Warfare Suite etc.

Finance

During this year, your Company has declared a dividend of 400% compared to 280% in the previous year. Apart from the final dividend of RS. 34,112 lakh (140%) for the year 2019-20 which was paid out in 2020-21, the interim dividend(s) amounting to RS. 68,225 lakh (280%) has been paid during the year 2020-21.

To achieve the projected growth in the coming years, a focused initiative is taken up by your company in taking up some major projects, which are progressing well and the outcome from these projects should enable the Company to achieve the planned higher trajectory of turnover and growth. Despite some amount of budgetary constraints faced by customers, your Company has been able to meet all the incremental working capital requirements through internal accruals. It has retained highest rating by ICRA for both short term and long term borrowings.

The inventory position (net) of the Company as on 31 March 2021 was RS. 4,95,467 lakh compared to RS. 3,96,275 lakh as on 31 March 2020. This works out to 130 days of value of production as on 31 March 2021 against 117 days in the previous years.

The position of trade receivables (net) as on 31 March 2021 was RS. 6,55,154 lakh compared to RS. 6,73,291 lakh as on 31 March 2020. This works out to 173 days of turnover as on 31 March 2021 against 195 days of turnover achieved during the previous year. The decrease in trade receivables was mainly on account of the special efforts put in for collection of debtors during the year.

Deposits

The Company does not have any Public Deposit Scheme at present. However, the matured Public Deposit amount (collected prior to February 2006) with the Company was RS. 36.95 lakh as on 31 March 2021. Out of this, 34 deposits amounting to RS. 36.50 lakh have not been claimed or have not been paid as these accounts were frozen on the advice of the Karnataka Lokayukta. The remaining matured deposits of RS. 0.45 lakh as on 31 March, 2021 is unpaid due to insufficient documents/records produced by the Depositors.

Research & Development

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

Research and Development (R&D) has been the core strength of BEL, while enhancing the efficiency and relevance of R&D through in-house and collaborative R&D modes are top priorities. Various divisions of BEL are involved in the development of Strategic Components, Technology Modules, Subsystems, Products, Systems and Systems of Systems.

BEL has a three-tier R&D structure, namely, the Central Research Laboratory (CRL), the Product Development and Innovation Centre (PD&IC) and the Development and Engineering (D&E) groups attached to the Strategic Business Units (SBUs) / Units. All the R&D centres of BEL, as certified by the Department of Scientific & Industrial Research (DSIR) are located across India; D&Es at each of the SBUs and Units are at Bengaluru, Chennai, Ghaziabad, Hyderabad, Kotdwara, Machilipatnam, Navi Mumbai, Panchkula and Pune, the PD&IC at Bengaluru and the CRLs at Bengaluru and Ghaziabad. The R&D Labs (CRL/PD&IC/D&E) work in the identified technology and product areas, based on three-year R&D plans and after due approval of budget/time by competent authorities.

Apart from the in-house efforts, BEL R&D engineers are collaborating with DRDO, ISRO, CSIR, other research laboratories, national and international academia, research institutes, OEMs/industry, experts/consultants, MSMEs and start-ups through collaborative R&D in niche technologies. BEL has created an ecosystem to co-create products / solutions in many business segments.

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

D&E Projects Initiated During 2020-21:

Several R&D projects have been initiated during the year 2020-21 both through in-house developments and collaborative efforts (mainly with the DRDO). Major projects initiated in 2020-21 are Communication ESM for Project Himasravan, Entities for Project Shatrughat and Samaghat (S&S), Multi-Function Radar for Vertical Launch Short Range Surface to Air Missile (VLSRSAM), Software Defined Radio (SDR-D, V/UHF manpack), SSPA based X-Band Doppler Weather Radar, Weapon Systems and Airborne Fire Control System for firing of Light weight Torpedoes from Helicopter.

D&E Projects Realised During 2020-21: Some of the major projects realised / completed during the year 2020-21 are Systems for Akash-NG, Compact Tracking Radar for Lynx U2 Gun Fire Control System, technology modules for Multi Target Tracking Radar, Integrated Air Command and Control System (IACCS) BatcRs. 2, Variants of Software Defined Radios, Low profile Ku Band Satellite communication on the move (SOTM) mobile terminal,

Combat Management System for P-15B class of ships, Electronic Counter Measure (ECM) Jammer MK-III and Digital Beam Former for 3D E/F Band Airport Surveillance Radar (ASR).

Important R&D awards /recognitions received during year are: the SODET Awards for the years 2018-19 and 2019-20 in the categories of Technology Innovation and Technology Development and the ‘SKOCH Award 2020' for Excellence in Digital India/Use of ICT for ‘BEL e-Sammelan Tool (BEST)'.

BEL has met all the MoU parameters w.r.t R&D by timely completion of the following:

1. Compact Tracking Radar for Lynx U2 Fire Control System

2. Train Simulator for Mumbai Monorail

3. Un-cooled Thermal Imager (UTI) for Sniper Rifle

4. Four AI enabled projects:

a. AI enabled gesture recognition for surveillance applications

b. AI enabled automatic information extraction & synthesis

c. AI based Traffic Analytics Module

d. AI enabled activity inference for enemy target using templating for air operations (C4I)

BEL R&D Cell at Kochi has realised core technology modules for sonar and simulators. BEL R&D Cell at IIT Madras Research Park is developing core technology modules for 5G communication systems.

New products developed through in-house / collaborative development efforts during the year 2020-21 are as follows:

1. Low profile Ku Band SOTM: Satellite communication on the move is a mobile terminal capable of providing satellite-based communication that supports tracking on the move to maintain the link and offers uninterrupted communication.

2. Instant Fire Detection and Suppression System (IFDSS): IFDSS is a digital system for Armoured Fighting Vehicles (AFV) to detect hydrocarbon fuel fire in the crew compartment using IR detectors, Engine compartment using linear thermal detector and automated suppression of fire, jointly developed with the DRDO.

3. Indigenous ASR-MSSR: Airport Surveillance Radar (ASR) is co-mounted with Mono-pulse Secondary Surveillance Radar (MSSR) which provides surveillance data for seamless Air Traffic Control application with location of targets and weather of interest detected within surveillance region.

4. Battle Field Surveillance Radar (Upgrade):

BFSR is lightweight, man-portable and effective against detection and tracking of crawling man, single man, group of men and small, medium and large vehicles, upgraded for extended range,

Thermal Imaging Camera integration and Artificial Intelligence based automatic classification of targets.

5. Compact Tracking Radar (CTR) for Lynx U2 GFCS: CTR is the indigenous tracking X-Band

Radar with autonomous search and surface target tracking for LYNX U2 Gun Fire Control System.

6. Combat Management System for P-15B class of ships: The CMS system has enhanced features and capabilities for connecting sensors and weapon systems onboard ship (P15B class) to provide common operational and tactical picture with Navigation and Surveillance, Surface Warfare, Aircraft/Helicopter Control, Anti-Submarine Warfare, Anti Air Warfare, Electronics Warfare and Data Link Functions.

7. Anti-Submarine Warfare (ASW) Fleet functionalities for CMS-17: Anti-Submarine

Warfare (ASW) fleet functionalities for CMS-17 Combat Management System developed jointly with Weapons and Electronics Systems Engineering Establishment (WESEE) and interoperable with other Ships with CMS ASW fleet.

8. Advanced Composite Communication System (ACCS) for P-17A: ACCS is an IP based highly flexible integrated communication system to provide quick and reliable communication over VLF/MF/HF/V/UHF and Satcom bands onboard ship (P17A class) for facilitating ship-to-ship, ship-to-shore and ship-to-air communications.

9. Composite Communication System (CCS) MK-

II: CCS MK-II system for submarine provides control and monitoring subsystem and associated equipment for meeting primary external communication needs on board submarines, with respect to communicating strategic commands, operation of tactical circuits, supervisory, diagnostic and other miscellaneous services.

10. Electronic Counter Measure (ECM) Jammer

MK-III: Counter Radio Controlled Improvised Explosive Devices (RCIED) equipment has smart cell phone jamming techniques to protect VIP / Army convoys.

11. Digital Beam Former for 3D ASR: Programmable digital beam former for 3D Airport Surveillance Radar (E/F Band) has multi-channel processing to detect targets in elevation.

12. Variants of Software Defined Radios: Software

Defined Radios supporting both voice and data operations to cater communication needs of network-centric warfare operations with different variants like SDR-Naval Combat, SDR-Manpack, SDR-Hand Held, Airborne SDR-AR, HF/VHF 100W Radio for Low Intensity Conflict Electronic Warfare system, intended for ship, shore and airborne deployments, jointly developed with DRDO.

13. Samyukta Electronic Warfare Non-Communication entities: Mobile integrated Electronic Warfare system to carry out Search, Monitoring, Analysis, Direction Finding, Location Fixing and Jamming functional operations jointly developed with the DRDO.

14. Re-engineered RAWL-02-MK-II-A Radar: The re-engineered systems are RF digital hybrid receiver, compact data and processing unit, profile based Radar operation, with a compact chiller and an improved Radar Controller for RAWL-02-MK-IIA Radar.

15. IFF MK-XII(S) Interrogator: Interrogator for Identification Friend or Foe MK-XII(S) is realised for Weapon System.

16. Integrated Air Command and Control System (IACCS): Integrated Air Command and Control System (IACCS) BatcRs. 2 provides additional level of redundancy from Standby Node to Sub-Node in case of failure of Main Node, war gaming like functionality and simulators.

17. Panoramic Night Vision Goggles (NVG): Light weight Aviation Goggles for surveillance application designed to enable full view of the scenario without moving head and to provide an exceptional depth perception.

18. Artillery Combat Command and Control System (Shakti) Phase III: ACCCS system automates and integrates all Artillery operational functions and provides Decision Support at all levels of artillery command, from Command down to battery/guns in a networked environment with inbuilt graded secrecy for communication.

19. Coastal Surveillance System (CSS) Phase 2: CSS subsystems for radar stations, mobile stations and data centres, including features like decision support and record-replay are realised for the Indian Coast Guard (ICG).

20. Encryptors: Link Encryptor for Versatile Environment (LIVE) MK-II and Secure Multi Interface Link Encryptor (SMILE) MK-II are developed to secure sensitive data transmitted over high-speed Links.

21. Adaptive Traffic Control System (ATCS): System developed to monitor real time traffic conditions to improve signal timing, using Adaptive Traffic Control in smart cities, installed across the city, depending on the real time traffic condition from a central location, provides green corridor synchronisation, ambulance/VIP for free flow movement.

22. Electric Gun and Turret Drive System: The Electric Gun and Turret drive system for Armoured Fighting Vehicles (AFV) in traverse axis and elevation axis based on brushless drive and gun stabilisation is developed to replace the hydraulic drive system.

23. Containerised Mobile Water Purification System:

Transportable containerised system to purify water having high turbidity, total dissolved solids, bacteria, virus and iron content, into product water in conformance to the BIS standards.

24. Batteries: Li-ion batteries are realised for two-wheeler electric vehicles (EV), three-wheeler electric vehicles (EV) and e-Bicycles.

25. Simulator for Weapon System: Operator training system with classroom-based simulator to train Weapon System operators.

26. Train Simulator for Mumbai Monorail: Train Driving Simulator for Mumbai Monorail with complete mock-up of driver compartment with visual display system for 3D Terrain, 3D Visualisation and dashboard with real controls and indicators, Instructor Station, data for performance evaluation of trainees and record replay of exercises.

27. Motion-based Vehicle (bus) Driving Simulator:

Bus Driving Simulator with Motion Platform for Bangalore Metropolitan Transport Corporation (BMTC) with complete mock-up of bus driver cabin with controls mounted on a 6 DOF motion platform, supporting 3D Terrain and 3D Visualisation, Instructor Station, data for performance evaluation of trainees and record replay of exercises.

Future Plan of Action: Plan to scale up R&D for innovative products / services across the organisation to align with the objective of growth and transformation. All the tiers of R&D, D&Es, PD&IC and CRLs will continue to collaborate in identifying new areas of development and complementing each other in addressing the requirements through in-house developments. BEL plans to continue investing in R&D to meet the continuously emerging requirements of its customers as well as for diversification. While a major thrust would be on in-house developments, collaborations with national laboratories, academic institutions, research institutes, industry and the MSMEs will also continue to be strengthened. Focussed technology/product development efforts have been initiated in diversified areas of arms and ammunition, unmanned systems, medical electronics, metro railways, GaN devices, etc. Special emphasis is being laid on AI with targets for specific projects being set and completed every year.

New Facilities Established

Infrastructure enhancement is one of the major objectives of the Company to stay upgraded for global opportunities and to be the best in the business. During the year 2020-21, the Company spent around RS. 48,000 lakh as part of its capex investment towards modernisation of plant & machinery, test instruments, R&D investments, infrastructure upgradation etc.

Following are some of the major facilities established during 2020-21:

• Advance Torpedo Decoy System (ATDS) Maareech Integration Facility, Bangalore

• Upgradation of Product Development & Innovation Centre (PDIC), Bangalore.

Information Technology (IT) Initiatives:

In SAP various new processes have been introduced for the automation and digitisation. SAP FLM access was not available in all remote offices. CRM file management system is a simplified system to create and approve the files using internet system. For remote offices access is provided for Employee Self Service (ESS).

Asset tracking through the Radio Frequency Identification

(RFID) technology has been introduced for tracking existing assets as well as new assets. The process has been integrated with SAP. RFID Tags are generated and affixed physically on all the assets.

Various Cyber Security initiatives are taken like Two-factor authentication using randomly generated Grid Pin has been introduced for internet emails for users logging in from outside BEL premises. This offers protection against hacking of passwords and data leakage while in transit. VAPT for both intranet and internet data centres have been completed. Far-DR for SRM has been setup for e-procurement systems.

Annual Financial statement is being generated from SAP directly from the financial year 2019-20 onwards.

Quality

Quality, technology, innovation are the three guiding pillars of BEL's business initiatives. The Company is committed to the continual improvement through a process approach in line with World-Class Quality Systems. All Units / Strategic Business Units (SBUs) /Common Services Groups (CSGs) are accredited to the ISO 9001 Quality Management System (QMS). Sixteen Units / SBUs of the company have upgraded their QMS to Aerospace Standard, AS 9100D. All units of the Company are committed to the Environment Management System through ISO 14001 Certification. The Ghaziabad unit has upgraded its OHSAS from ISO 18001 to ISO 45001.

Nine units/SBUs/divisions of the Company are certified for Information Security Management System ISMS ISO 27001. Product Development and Innovation Centre

(PD&IC) is certified for AS9100D, and Center for Learning and Development (CLD) is certified for ISO 9001:2015 for the first time. During the year SC & US SBU was from ISO 9001 to AS9100D, and PD&IC received the first ISMS ISO 27001 certificate. Export Manufacturing (EM) SBU received the ISO 13485 Medical Devices QMS certificate for ICU Ventilators and the Ghaziabad unit has upgraded its OHSAS certificate from ISO 18001 to ISO 45001. Test Equipment Calibration and Maintenance departments of Bangalore Complex, Ghaziabad, Panchkula and Navi Mumbai units are certified by NABL in accordance with the ISO / IEC 17025 Standards. Software SBU is certified for CMMi level 5 and also for ITSMS ISO 20000-1. NCS & DCCS SBUs of Ghaziabad, CRL Ghaziabad, Chennai, Hyderabad units are certified for the CMMi level 3.

Remarkable achievement of the company in this year is moving from 1 SBU, 1 Product Green Channel Certificate to 41 Products, 12 Certificates covering 10 units/SBUs.

The European Foundation of Quality Management (EFQM) Model for Business Excellence is being followed in BEL since 2002. BEL has drawn up a roadmap for the deep drive of the new EFQM Model 2019 and identified units for the challenging CII Exim Award.

During the year, 20 senior executives from various units have been trained as ‘Six Sigma Black Belts' by the Indian Statistical Institute, Bangalore. Total 535 Six Sigma

Projects have been completed during the year 2020-21, resulting in an estimated savings of RS. 176 crore to the company. Out of the 30 Six Sigma projects nominated for Regional/National level competitions, 15 received regional level awards and 15 projects received National Level Championships Awards.

The Company has facilitated the involvement of Non-executives in the Quality Movement through Quality Control Circles (QCC). During the year 2020-21, 781 QCC Presentations are made by various QCC teams. Many QCC teams are nominated for national competitions and all are adjudged for various categories of awards. One

QCC Team KARANJA from Milcom SBU of Bangalore Complex represented BEL in the International Convention ICQCC 2020, held at Dhaka, Bangladesh virtually, and won the ‘Platinum Award'. Around 4464 suggestions have been are awarded in the financial year 2020-21. Selected employees participated in the 31^st National Convention conducted by the Indian National Suggestion Schemes' Association (INSSAN).

During the year, Bangalore Complex received the 1st Prize under the Engineering Industry Category in ‘Excellence in Suggestion Scheme contest 2019-20' organised by INSSAN.

The Company has been nominated D&E Engineers for Global Certification on Reliability ‘Certified Reliability Engineer (CRE)' certification by the American Society for Quality (ASQ). During the year, 45 D&E and Testing Engineers have been certified as CREs. The Company is also nominated D&E Engineers for Design for Six Sigma Green Belt (DFSS-GB) certification by the Indian Statistical Institute. During the year 69 D&E Engineers were certified as ‘DFSS Green Belts'. During the year, 24 mid-level and senior executives were trained on ‘Business Analytics & Data Management' by the Indian Statistical Institute, Bengaluru.

The Company has been nominated Software Engineers for Global Certification on ‘Certified Software Quality Engineer (CSQE)' conducted by the ASQ, and during the year, 18 engineers were certified as CSQEs. During the year, 39 operating level Quality Engineers were certified as ‘Certified Quality Engineers (CQE)' by the ASQ.

The Company has also nominated Executives working in supply chain fields, like Purchase, Subcontract, Production control for the Global Certification on “Certified Supplier Quality Professional (CSQP)” by ASQ, and during the year, 8 Executives are certified as CSQP. Certified Manager for Quality and Organisation Excellence (CMQ&OE) by ASQ for senior level executives, is also conducted during the year and 13 Senior executives are certified as CMQ-OE.

MR-SBU of Bangalore Complex won the First Prize, Kotdwara and Panchkula units won the second and the third prizes respectively in the Internal Quality Recognition Award (QRA) 2020.

In order to inculcate a culture of Project Management, training programmes for Project Management Professionals (PMP) are conducted. During the year 99 PMPs are certified by the Project Management Institute (PMI).

This year the Company has conducted the Integrated Customer Satisfaction Survey and captured the holistic perceptions of external customers, right from the ordering phase through execution and the end-user phase with PDCA approach. Questionnaires for the three phases are developed and distributed and customer feedback are received and analysed by external surveying agency, using various analytical techniques. The Company received the Excellence Customer Satisfaction Index of 82.66% with a net promoter score of 51.98, which is commendable in comparison to benchmark companies.

Human Resources

Your Company employed 9,172 people as on 31 March 2021 compared to 9,279 people as on 31 March 2020. Out of these employees, 4,841 were engineers / scientists and 2,001 were women employees. A total of 245 employees were inducted during the year. 38 employees belonging to the Scheduled Caste (SC), 22 employees belonging to the Scheduled Tribes (ST), 67 employees from the Other

Backward Classes (OBC) and 21 employees from the minority community were recruited during the year.

Your Company has been complying with the Government directives on reservation. The particulars of SC/ST and other categories of employees as on 31 March 2021 are as under:

Category of Employees	Executives		Non- Executives
	Group ‘A'	Group ‘B'	Group ‘C'	Group ‘D'
Scheduled Caste	1,060	30	538	25
Scheduled Tribe	368	11	130	17
OBC	1343	39	765	30
Ex-Servicemen	84	-	271	26
Physically Challenged	93	5	110	2

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

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

The Company is an equal opportunity employer and consciously strives to build a work culture that promotes dignity of all employees. As required under the provisions of the Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed there-under, the Company has implemented the policy on prevention, prohibition and redressal of sexual harassment at the workplace, which has been uploaded on the Company's intranet portal. All women, permanent, temporary or contractual, including those of the service providers, are covered under the Policy.

An Internal Complaints Committee has been constituted in each of the nine constituent units, including the corporate office to redress complaints relating to sexual harassment.

Awareness programmes were conducted across the Company to sensitise employees and uphold the dignity of their colleagues at the workplace, particularly with respect to prevention of sexual harassment. The details of the complaints filed, disposed of and pending during the year pertaining to sexual harassment are provided in the Business Responsibility Report, which forms a part of this report.

Awards and Accolades

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

• Times Ascent's CEO with HR Orientation Award

• International Aerospace Award

• PSE Excellence Award

• The Policy Times' appreciation Award

• SKOCH Award for e-Sammelan Tool

• SKOCH Award for Indigenisation

Other Significant Achievements During the Year:

• BEL has achieved the highest ever turnover in excess of RS. 13,500 crore during the financial year 2020-21 despite the ongoing crisis due to Covid-19 pandemic.

• BEL registered a growth of 9.6% over the previous year's turnover.

• BEL has achieved an export turnover of US$ 51.93 million (Major items: Coastal Surveillance System, Communication Equipments, Data Link, IFF-Interrogator, Radar Finger Printing System, TR Modules, Low Band Receiver LRUs etc.)

• Rs. 15,000 crore worth orders received (major orders include AFNET Performance & Security Enhancement & SATCOM Network, Ventilators including Services, Naval Fire Control System, Software Defined Radio, Advance Torpedo Defence Systems, Digital Mobile Radio Relay etc.)

• Strategic partnerships signed with global players like Beretta Italy, Atlantis South Africa, Rosonboron Export, Russia and Okaya Powertec in the international segment to address the new business opportunities.

• Strategic partnerships with DMRCL, the Airports

Authority of India, Texmaco, BPL, IIT Dharwad, the Tamil Nadu Industrial Explosives Ltd (TEL), and several start-ups in the domestic segment towards development of various technologies/products to address business opportunities arising out of the ‘Make in India' initiatives of GoI.

• BEL Hall of Electronics was set up at Visvesvaraya Industrial and Technological Museum, Kasturba Road, Bangalore. Exhibits were created as a part of enhancing awareness amongst the student community and the society on Basic Electronics, Digital Electronics and Communications, Electronics in Defence, Imaging Technology and Telemedicine, Virtual Reality, Internet and Milestones in Electronics. The existing infrastructure at the museum is being upgraded as a CSR activity for exhibits showcasing the emerging sciences, technologies and engineering.

Subsidiaries, Joint Ventures and Associates

BEL Optronic Devices Limited (BELOP) is a wholly owned subsidiary of BEL, which manufactures Image Intensifier Tubes. Your Company has made further investment of RS. 156.58 lakh (64,438 equity shares of RS. 100/- each at a premium of RS. 143/- per share) during the year in the equity shares of BELOP, by subscribing to right issue offered by BELOP. BELOP achieved a turnover of RS. 4,075 lakh for the year compared to RS. 3,721 lakh in the previous year. The Profit After Tax (PAT) for the year was RS. 490 lakh compared to RS. 301 lakh in the previous year.

BEL-THALES Systems Limited (BTSL), a subsidiary, was formed for design, development, marketing, supply and support of civilian and select Defence radars for Indian and global markets. Your Company holds 74% of the equity capital in BTSL. During the year BTSL recorded a turnover of RS. 3,538 lakh compared to RS. 4,056 lakh in the previous year. The Profit After Tax (PAT) for the year was RS. 315 lakh compared to RS. 334 lakh in the previous year.

The Associate Company GE BE Private Limited [26% shareholding by BEL] continues to perform well. It manufactures CT Max and other latest version X-Ray Tubes. GE BE Pvt. Ltd. recorded a turnover of RS. 1,22,850 lakh for the year compared to RS. 1,17,685 lakh in the previous year.

The Profit After Tax (PAT) was RS. 11,673 lakh for the year compared to RS. 12,369 lakh in the previous year.

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

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

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

Consolidated Financial Statements

Consolidated Financial Statements of your Company and its Subsidiaries for the year ended 31 March 2021 have been prepared in accordance with the provisions of Section 129(3) of the Companies Act & applicable Indian Accounting Standards and forms part of this report.

Vigilance

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

During the year, 1779 high value purchase orders/ contracts have been reviewed. A CTE Type Intensive Examination has been restructured with the formation of Eleven Intensive Examination teams. The CTE Type of Intensive Examination of 61 high value procurement contracts has been taken up during the year 2020-21. Regular and surprise checks and inspections have also been conducted by the field Vigilance Officers. During the year, 26 complaints, including complaints referred by the CVC/MOD/CBI were received. A total of 35 complaints, including 5 complaints referred by CVC/MOD/CBI were disposed of. Disciplinary action and system/process improvement has been recommended in some cases where lapses were observed. One complaint, which was referred earlier, has been pending with the CBI, Bangalore for detailed investigation.

During the year, 850 Executives and 82 Non-executives were given basic awareness program on Vigilance. 166 Executives and 37 Non-executives working in sensitive areas for more than 3 years have undergone job rotation and the percentage coverage is 92.3%.

The Vigilance Department continues to be certified for ISO 9001/2015 Certification for the vigilance function of BEL. In line with the CVC's guidelines on leveraging technology and to ensure transparency through effective use of technology, the following functions have been made operational through SAP and the Company's website:

• E-Procurement - about 96.06% of the procurements, excluding the ToT procurement, long term rate contracts and repeat orders are covered under the e-procurement mode.

• Online registration of Vendors.

• Vendor Payment Information System.

• E-Payment/bank transfer of payment to vendors.

• Details of awarded contracts / purchase orders valuing more than RS. 10 lakh in respect of works contracts, service contracts, capital items and non-production items are posted on the website.

• Details of awarded Contracts/Purchase Orders issued on nomination / single tender basis value exceeding H5 lakh are posted on the website.

• Purchase and Works Contract Manuals are revised and posted on the BEL website.

• The Complaint Handling Policy and the Whistle Blower Policy are posted on the website.

• Corruption Risk Management Policy is framed and implemented across the Company. The same is posted on the web site.

• Vendors' Directory is posted on the Company's website.

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

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

• Vigilance Monthly and Quarterly Reports are generated through SAP

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

Vigilance setup in BEL has been continuously endeavoring to bring in transparency, fairness and equality in all transactions and processes of the Company by creating a sense of awareness on the system and procedures through awareness campaigns and training programmes. Some of the key activities that have been carried out during the year are:

a) Bharat Electronics Limited (BEL) has observed Vigilance Awareness Week with the theme ‘Vigilant

India, Prosperous India' from 27 October 2020 to

2 November 2020 at all its offices across the country by adhering to all the precautionary measures to contain the spread of Covid-19. In the given current situation various awareness programmes and activities were held to keep the spirit of celebrating the Vigilance Awareness Week.

Due to the pandemic, online lecture programmes, online competitions and other activities were held through video conferencing.

E-Pledge was facilitated through the BEL intranet, enabling employees to take the E-Pledge. Certificate of appreciation and commitment, issued by CVO/

BEL was downloadable by the employees who have taken the E-Pledge through the BEL intranet. 1940 employees have taken e-pledge.

Integrity pledge was administered to around 8000 employees in their respective workplaces across all the units.

Apart from this, employees were provided with a link to the CVC website to take the E-Pledge from the CVC website. SMS on Vigilance Awareness was sent to 14367 active vendors of BEL during the week.

b) Programme on Preventive Vigilance as part of the Mid-Career Training programme was organised at the BEL BAE Academy for Excellence on 22.12.2020. Shri Sanjay Sahay, IPS gave lecture on ‘Preventive Vigilance' and 63 officers from different units/SBUs participated.

Integrity Pact

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

As recommended by the CVC, the Company has appointed Mr Girish Chandra Chaturvedi, IAS (Retd.) and Dr Parvez Hayat, IAS (Retd.) for monitoring and implementation of the Integrity Pact in the Company. During the financial year 2020-21 the Independent External Monitors (IEMs) reviewed 199 contracts and held three structured meetings with the Chairman & Managing Director.

Procurement from Micro & Small Enterprises (MSEs)

Your Company has been providing an increased thrust on enhancing procurement from Micro & Small Enterprises (MSE) and is implementing the Public Procurement Policy for MSEs as per the guidelines / notification issued by the Ministry of MSMEs. During 2020-21, BEL complied with the mandate of the Government's Public Procurement Policy for MSEs.

BEL has on-boarded on the TReDS Platform, GeM, MSME Sambandh & MSME Samadhaan Portals complying with the Government guidelines. The Company actively participated in various Vendor Development Programmes held across the country. BEL has showcased various items for indigenisation for domestic vendors, including the MSEs on the MoD's Srijan Portal.

BEL's procurement from MSEs is 35% of total domestic procurement during 2020-21 against a mandatory target of 25% as per the Public Procurement Policy for MSEs.

Official Implementation of Language Policy

Your Company is committed to adhere to the Official Language (OL) policy of the Government of India. During 2020-21, despite COVID pandemic challenges, the Company achieved various targets prescribed in the Annual Programme issued by the Dept. of OL, Ministry of Home Affairs (MHA), GoI to transact on official work Hindi. The efforts made towards implementation of the Official Languages include:

OL Inspections: Committee Official of Parliament on Language conducted OL inspection of RO Delhi on 04.09.2020 and CRL-Ghaziabad on 14.10.2020. Corporate OL audit team conducted 05 OL inspections of its subordinate Units/Offices.

Bilingualisation: of the Company All units and offices including the Corporate Office, are issuing documents in bilingual as per the Section 3(3) of the Official Languages Act, 1963. Usage of Hindi is being encouraged for correspondence and on computers. Individual orders under OL Rule 10 (4) were issued by the CMD to officers/ employees who are proficient in Hindi to do their complete work in Hindi. Also, a circular on creation of Check Points under Rule 12(1) of OL Rules was issued.

Computerisation and Website: Updated information pertaining to OL is being communicated through the OL Portal GARIMA introduced by the OL Dept. of Corporate Office. Quarterly progress reports from units/offices are being received online in SAP. Hindi notings are being written in File Life-cycle Management (FLM). The Company's website is also available in Hindi.

Training and Reporting: A roster is maintained for Hindi language training and computer training, which is updated from time to time. As per the roster, employees were nominated for online training. Quarterly / half yearly reports are sent to the OL Dept., MHA, GoI, MoD,

Hindi Teaching Scheme and Town Official Language Implementation Committee (TOLIC) as per schedule.

Hindi Month Celebrations: Hindi Month and Hindi Day were observed during September in all the units and offices of the Company through the online mode.

Meetings/Workshops: Official Language Implementation Committee (OLIC) meetings, Hindi workshops and technical talks in Hindi were conducted through online mode in all units / offices.

Incentives and Awards: Incentive schemes are propagated among all employees and those who took part in these schemes were awarded with a cash prize.

Employees have participated in the TOLIC competitions and won prizes.

The Company won the ‘Rajshabha Kirti' (2^nd) Award for 2019-20 and the ‘Rajbhasha Gaurav' (2^nd) Award for 2018- 19 by the Dept. of OL, MHA. The Secretary (OL) bestowed a commendation letter for participation in the All-India Online Translation Competition ‘Kanthasth'. in

Publications: e-Maganizes were published in units / corporate office of the Company to propagate the usage of Hindi.

New Initiatives: A dedicated section for OL has been introduced in the Company's website.

Efforts are in progress to ensure OL implementation and the usage of Hindi across the Company.

Implementation of Right to Information Act, 2005

In consonance with the provisions of the Right to Information Act, 2005 (the Act), Your Company has a well- defined mechanism in place to address the provisions of the Act. Your Company has a designated General Manager level officer as a Nodal Officer to oversee the implementation. The requests received are processed by 15 senior personnel, designated as Central Public Information Officers (CPIOs) including the one at the corporate office and one each at the units/ROs. Your Company has a designated General Manager level officer as a First Appellate Authority to dispose of first appeals filed under the Act. In compliance with Government directives, Your Company is successfully processing the applications under the Act, online.

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

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

Your Company received 313 applications (including 71 transferred by other Public Authorities to BEL) during the period from April 2020 to March 2021, and 10 RTI applications were carried forward from year 2019-20. A total of 290 applications were responded to, including 41 applications that were rejected, out of a total of 323 applications. Your Company received 92 First Appeals during the period, out of whicRs. 88 were disposed-off. Quarterly RTI returns for all the four (4) quarters have been submitted to the Central Information Commission.

Meetings of Board and Committee(s)

During the year, nine Board meetings were held and the maximum interval between any two meetings was not more than 120 days. The details of meetings of Board and Committee(s) held during 2020-21 are furnished in the Corporate Governance Report, which forms a part of this report.

Directors & Key Managerial Personnel and their Shareholding

The following changes took place in the Directorate and Key Managerial Personnel of your Company during the financialyear:

Name of the Director	Designation	Date of Appointment	Date of Cessation
1 Mr Koshy Alexander	Director (Finance) & CFO	Not Applicable	31.07.2020
2 Mr Dinesh Kumar Batra	Director (Finance) & CFO	01.08.2020	Not Applicable
3 Mr Mahesh V	Director (R&D)	Not Applicable	31.08.2020
4 Mr Rajasekhar M V	Director (R&D)	01.09.2020	Not Applicable
5 Mr Mukha Harish Babu	Independent Director	Not Applicable	10.09.2020
6 Mr Surendra S Sirohi	Independent Director	Not Applicable	10.09.2020
7 Dr Vijay S Madan	Independent Director	Not Applicable	10.09.2020
8 Dr Amit Sahai	Govt. Nominee Director	Not Applicable	29.10.2020
9 Mr Anurag Bajpai	Govt. Nominee Director	29.10.2020	Not Applicable

Mr M V Gowtama, Chairman & Managing Director, Mr Dinesh Kumar Batra, Director (Finance) and Chief Financial Officer and Mr S Sreenivas, Company Secretary are the KMPs as on 31 March 2021, as defined under the Section 2(51) of the

Companies Act, 2013.

Mr Anurag Bajpai, Govt. Nominee Director was appointed as Additional Director w.e.f 29 October 2020 in place of Dr Amit Sahai, who ceased to be Govt. Nominee Director on 29 October 2020. Mr Anurag Bajpai, Additional Director is being appointed as Director on terms as set out in the Notice of the 67^th Annual General Meeting.

Mr. Vinay Kumar Katyal, Director (Bangalore Complex), retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment.

Mrs Shikha Gupta, Director (Other Units) ceased to be Director w.e.f 7 May 2021. Mr M V Gowtama, Chairman & Managing Director superannuated on 30 June 2021.

The Govt. of India vide its letter no.DDP-E0032/2/2020-D (BEL) dated 9 June 2021 and letter no.DDP-E0032/4/2020-D (BEL) dated 11 June 2021 assigned the additional charge for the post of Chairman and Managing Director and the post of Director (Other Units) respectively to Mrs Anandi Ramalingam, Director (Marketing) w.e.f 1 July 2021.

The details of Directors and Key Managerial Personnel (KMPs) who are holding shares in the Company as on 31 March 2021 are given below:

Name	Designation	No. of Equity Shares Held
1 Mr M V Gowtama	Chairman and Managing Director	1,263
2 Mrs Anandi Ramalingam	Director (Marketing)	1,263
3 Mr Vinay Kumar Katyal	Director ( Bangalore Complex)	1,263
4 Mr Shivakumaran K M	Director (HR)	1,263
5 Mr Dinesh Kumar Batra	Director (Finance) & CFO	1,263
6 Mr M V Rajasekhar	Director (R&D)	1,263
7 Mr S Sreenivas	Company Secretary	1,263

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

Directors' Responsibility Statement

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

a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;

b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at 31 March 2021 and of the profit of the

Company for the year ended 31 March 2021;

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

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

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

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

Significant and Material Orders

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

Events Subsequent to the Date of Financial Statements

There are no material changes and commitments affecting the financial position of the Company which occurred between 31 March 2021 and date of signing of this Report.

Related Party Transactions

There were no materially significant related party transactions with the Company's Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interests of the Company.

Transactions with related parties that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. None of the transactions with related parties fall under the scope of Section 188(1) of the Companies Act, 2013. All Related Party Transactions are placed before the Audit Committee and also to the Board for approval, if required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transaction has been uploaded on the Company's website www.bel-india.in. Information pursuant to Section 134(3) (h) of the Companies Act, 2013 read with rule 8(2) of the Companies (Accounts) Rules, 2014 is attached to this report as Annexure-1.

Corporate Social Responsibility

Your Company has formulated a Corporate Social Responsibility Policy pursuant to the provisions of Section 135 of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 read with various clarifications, amendments issued by the Ministry of Corporate Affairs (MCA). The CSR Programmes

/ Initiatives / Projects are taken up in line with the Schedule-VII of the Companies Act, 2013, which is duly incorporated in the Corporate Social Responsibility Policy and forms the guiding principle for all our programmes.

The Corporate Social Responsibility Policy of BEL is posted on the Company's website, www.bel-india.in. For other details regarding the CSR Committee, including its composition, please refer to the Corporate Governance Report, which is a part of this report.

The objective of CSR is to contribute towards inclusive growth, sustained and equitable development in society through capacity building measures, empowerment of the marginalised and underprivileged sections/communities. Focused interventions are undertaken in the sectors of healthcare, education, rural development, environmental sustainability & vocational skill development.

During the financial year 2020-21, the DPE guidelines for CSR Expenditure stipulate CPSEs to take up focused CSR interventions on the common theme of Health and Nutrition, with preference to Aspirational Districts identified by the NITI Aayog. Accordingly, the CSR budget has been allocated for thematic CSR programmes - thrust being on initiatives that support the Government's concerted efforts in dealing with the challenges arising out of the Covid-19 pandemic. Further, CSR projects that impart technical & employability skill training to the rural youth from economically weaker sections of society are being implemented under Skill India.

Pursuant to the requirement under the Companies (Corporate Social Responsibility) Rules, 2014 (as amended), a report on CSR activities for the financial year 2020-21 is annexed herewith as Annexure-2.

Statutory Auditors

Pursuant to Section 139(5) of the Companies Act 2013, for the financial year 2020-21, the Comptroller and Auditor General of India (C&AG) appointed M/s SURI & CO., Chartered Accountants, Bengaluru, as Statutory Auditors of the Company for audit of accounts of Bangalore Complex, Hyderabad unit, Chennai unit and Corporate Office. M/s Tambi & Jaipurkar, Chartered Accountants, Pune were appointed as Branch Auditors of Pune & Navi Mumbai units. M/s J P Kapur & Uberai, Chartered Accountants, New Delhi, were appointed as

Branch Auditors of Ghaziabad, Panchkula and Kotdwara units. M/s Piramana & Associates, Chartered Accountants, Vijayawada were appointed as Branch Auditors for the Machilipatnam unit.

The Statutory Auditors' Report on financial statements for the financial year 2020-21 and ‘Nil' comments of the Comptroller & Auditor General of India (C&AG) under Section 143(6)(b) of the Companies Act, 2013 on the financial statement, including consolidated financial statement, are appended to the Annual Report.

Cost Auditors and Maintenance of Cost Records

Your Company appointed M/s Murthy & Co. LLP, Cost Accountants, Bengaluru, as Cost Auditors of the Company for the financial year 2020-21 for the audit of the cost records of the Company. The Company maintains cost records as specified by the Central Government under Section 148(1) of the Companies Act, 2013, in respect of its manufacturing activities.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (as amended), the Company has appointed M/s Thirupal Gorige & Associates LLP, Practicing Company Secretaries, Bengaluru for the financial year 2020-21 to undertake the Secretarial Audit of the Company. The Secretarial Audit Report is annexed to this report as Annexure-3.

The Secretarial Auditor in his Report observed that the Company is yet to appoint the adequate number of Independent Directors, including one Woman Independent Director as per the requirements of the SEBI (LODR) Regulations, 2015 and the composition of the Audit Committee, Nomination & Remuneration Committee & Stakeholders Relationship Committee is not in line with Regulation 18, 19 & 20 respectively of the SEBI (LODR) Regulations, 2015 (the Stakeholder Relationship Committee was reconstituted on 31 March 2021 in line with Reg.20 of the SEBI (LODR) Regulations, 2015). It is informed that the appointment of Directors is done by the Govt. of India and filling up of vacancies of the said Independent Directors is also pending with the appointing authority, namely the Government of India.

Reporting of Frauds by Auditors

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

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as on March 31, 2021 is available on the Company's website https://www.bel-india.in/ ContentPage.aspx?MId=17&CId=427&LId=1&link=427.

Risk Management

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

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

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

Vigil Mechanism / Whistle Blower Policy

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

Declaration from Independent Director(s)

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

Management Discussion and Analysis Report

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

Particulars of Loans, Guarantees & Investments

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

Particulars of Employees and Related Disclosures

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

Internal Financial Controls

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

Audit Committee

As on 31 March 2021, the Audit Committee comprises of Mr Sunil Kumar Kohli, Independent Director as Chairman of the Committee, Ms Manjula J and Mr Anurag Bajpai as members. During the year, all the recommendations made by the Audit Committee were accepted by the Board.

Corporate Governance Report

In terms of Regulation 34 of the SEBI (LODR) Regulations, 2015 and DPE Guidelines, a Report on Corporate Governance along with Compliance Certificate issued by the Statutory Auditors of the Company is attached with this report as Annexure-5.

Sustainability Report

A Report on your Company's efforts on ‘Sustainable Development' is attached with this Report as Annexure-6.

Business Responsibility Report

The SEBI (LODR) Regulations, 2015 mandated the inclusion of the Business Responsibility Report (BRR) as part of the Annual Reports for the top 1000 listed entities based on market capitalisation. In terms of Regulation 34(2)(f) of Listing Regulations, a BRR for the year 2020-21 describing the initiatives taken by the Company on environmental, social and governance perspective, in the format as specified by SEBI from time to time is attached with this report as Annexure-7.

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

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

Compliance with Secretarial Standards

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

Acknowledgement

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

	For and on behalf of the Board
Bengaluru	Anandi Ramalingam
31 August 2021	Chairman & Managing Director
	(Additional Charge)