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Annual Report 2017 - 18 BELOP
MISSION
To be a customer focused technology driven company in the field of Image

Intensifiers and other chosen areas
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BOARD OF DIRECTORS OF BEL OPTRONIC DEVICES LIMITED AS ON 13 AUGUST 2018
a) Mr. M.V. Gowtama Chairman CMD, BEL
b) Dr. Ajit. T. Kalghatgi (upto 31.05.2018) Director Director (R & D), BEL
c) Mrs. Anandi Ramalingam Director Director (Mktg.), BEL
d) Mr. Koshy Alexander(w.e.f. 24.10.2017) Director Director (Fin.), BEL
e) Mr. R.N. Bagdalkar(w.e.f. 05.07.2018) Director Director (HR), BEL
PRINCIPAL EXECUTIVE
1. Mr. DCN Srinivasa Rao Chief Executive Officer
COMPANY SECRETARY
1. Ms. Priya Iyer Company Secretary & CFO
BANKERS AUDITORS
1. State Bank of India M/s M.S.D.N. & Associates,

Chartered Accountants,
Pune
2. AXIS Bank Ltd.
CONTENTS PAGE NO.

1. Board of Directors, Principal Executives, Bankers & Auditors 1
2. Past Financial Statistics 2
3. Chairman’s Letter 3
4. Board’s Report 5
a) Management Discussion and Analysis Report(Annexure 1) 12
b) Corporate Governance Report (Annexure 2) 16
c) Report on CSR Activities (Annexure 3) 23
d) Sustainability Report (Annexure 4) 25
e) Extract of Annual Return- Form No. MGT-9 (Annexure 5) 26
f) Report on Conservation of Energy etc. (Annexure 6) 32
g) Secretarial Auditor’s Report (Annexure 7) 33
h) Form AOC - II (Annexure 8) 36
5. Financial Statements 37
a) Balance Sheet 38
b) Statement of Profit & Loss 39
c) Cash Flow Statement 40
d) Statement of Changes in Equity 42
e) Significant Accounting Policies 43
f) Notes to the Financial Statements (Note 1 to Note 39) 51
6. Independent Auditor’s Report 81
7. Comments of the C & AG 88
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TEN YEAR FINANCIAL STATISTICS

(`. in Millions)
Particulars 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Income 322 610 534 702 1578 1843 1242 1087 1312 1246
Profit after tax (36) 23 45 82 58 50 37 24 48 116
Equity capital 183 183 183 183 183 183 183 378 592 663
Reserves & Surplus 106 129 173 255 312 362 398 676 1014 1219
Working Capital 205 245 299 881 272 (185) (322) (86) 35 221
Capital Employed 304 325 366 942 347 37 573 745 892 1024
Net Worth 289 312 356 438 495 545 581 1055 1597 1868
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CHAIRMAN'S LETTER
Dear Shareholders,
It gives me immense pleasure to share with you the highlights of performance of your company during
the past year and the future outlook for the Company.
HIGHLIGHTS OF THE YEAR 2017-18
Financial Performance
Your company achieved a turnover of ` 12,164 Lakhs during the year 2017-18. During 2017-18, the
company has posted the highest ever net profit of ` 1,155 lakhs which is an increase of 139% over that
of the previous year. The higher profits are mainly on account of increase in net sales by 15% and
increase in value addition. The Networth of the Company has increased to ` 16,059 lakhs as on
31.03.2018, registering an increase of 17.19% mainly due to increase in profits and issue of additional
equity shares of ` 1,745 lakhs(including premium value).
Dividend
Your Directors have recommended a dividend of 30% of PAT for the year 2017-18 which amounts to
` 3.46 Crores.
Other achievements :
MoU Rating
Your company has been awarded “Very Good” rating for the year 2016-17 in respect of the MoU which
BELOP enters with it's holding company Bharat Electronics Limited (BEL) for establishing the
performance parameters and targets for each year with the approval of the Department of Public
Enterprises (DPE).
Credit Rating
During the year 2017-18, ICRA has assigned the following ratings to the company for the year 2017-18
(i) Long-term rating of [ICRA]AA+(pronounced ICRA double A+) to ` 4,000 lakhs fund based bank
limits.
(ii) Short-term rating of [ICRA]A1+ (pronounced ICRA A one plus) to ` 600 lakhs non-fund based
bank limits.
The long term rating of [ICRA] AA+ is with a stable outlook. These ratings indicate the high credit
quality in the long- and short-term.
RESEARCH AND DEVELOPMENT

The Company's D&E Department is driving and executing the developments towards products,
process and upgradation of manufacturing and Test Equipment.
The R & D team has also carried out the following activities in the areas of development of intensified
nd
C-MOS camera, re-design of power supply unit, design of upgrade for existing 2 gen PNVD's
On account of the above R&D efforts, the company has progressed in identification of additional
products / improving market potential of the existing products of the Company. The Company is also in
the process of upgrading the existing Products, to provide better product quality and increased
productivity in the manufacture and supply.
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FUTURE OUTLOOK
The XR-5 project is in the final stages of implementation.
BELOP is planning to diversify into related areas to improve business opportunities and to have
variety of products in it’s portfolio.
PERFORMANCE IN 2018-19
Your company has an order book position of ` 9.10 Crores as on 30.06.2018. However, the company
expects to receive further orders and execute them during the year and is expected to achieve a sales
of around ` 125 Crores for the year 2018-19.
GOVERNANCE AND SUSTAINABILITY

Your company endeavours to uphold the best practices in corporate governance. A report on
compliance of the guidelines on Corporate Governance as per the guidelines issued by the Department
of Public Enterprises for CPSEs forms part of the Board’s Report.
ACKNOWLEDGEMENTS
I am grateful to the Board of Directors for their support and guidance. I deeply appreciate the support
provided by the holding company, our customers and our business associates. The dedication and
commitment of our employees and officers at all levels continues to be the major strength of our
company. We shall make continuous efforts to build on these strengths to face future challenges and
sustain the momentum for profitable growth.
Best Wishes,
Sincerely,
-sd-
(M.V. Gowtama)
Chairman
Place: - Bengaluru
Date: - 6th August 2018
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BOARDS’ REPORT
To the Members,
I have great pleasure in presenting to you, on behalf of the Board of Directors, the
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28 Annual Report highlighting the Company’s performance in various metrics through the
period along with the Audited Accounts for the year ended 31st March 2018 together with the
reports of the Statutory Auditors and the Comptroller and Auditor General of India thereon.
1. Financial Highlights
The company has achieved turnover (Gross) of ` 12,164 Lakhs and has made a Profit for the year
of ` 1,155 Lakhs and Total Comprehensive Income of ` 1,170 Lakhs during the year.
The summary of the company’s financial results is given below:-
` In Lakhs
Particulars 2017-2018 2016-2017
Total Income 12,455 13,122

Profit Before Depreciation, Finance Costs and Tax 3,804 3,597
Finance Costs 482 741
Depreciation 2,054 1,997
Profit Before Tax 1,268 859
Provision for Taxation 113 375
Profit for the year 1,155 484
Total Comprehensive Income 1,170 419
2. Dividend
The Directors have recommended a dividend of 30% of PAT for the year 2017-18 which amounts to
` 3.46 Cr.
3. Order Book Position

The order status of the company as on 1st April, 2018 was ` 31.42 Crores as compared to
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` 0.52 Crores as on 1 April, 2017. During the year the company has received orders worth
` 146.85 Cr.
4. Future Outlook
The XR-5 project is in the final stages of implementation.
BELOP is planning to diversify into related areas to improve business opportunities and to have
variety of products in it’s portfolio.
5. Finance
During the financial year 2017-18, your company has met it’s fund requirements towards
incremental working capital and additional investments on upgradation of infrastructure and capital
equipments mainly from internal resources and the balance by borrowing working capital from it’s
consortium bankers. Borrowing has been minimised through close monitoring of cash flows and
efficient cash management. BEL has also committed to fund the XR-5 project cost by way of
infusion of equity and by way of loan.
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6. Credit Rating
During the year 2017-18, ICRA has assigned the following ratings to the company for the year
2017-18
( i) Long-term rating of [ICRA] AA+ (pronounced ICRA double A+) to ` 4,000 lakhs fund based
bank limits.
(ii) Short-term rating of [ICRA] A1+ (pronounced ICRA A one plus) to ` 600 lakhs non-fund based
bank limits.
The long term rating of [ICRA] AA+ is with a stable outlook. These ratings indicate the high credit
quality in the long- and short-term. Both the ratings are valid till 31st October 2018. These ratings will
help the company in obtaining the better terms for the various working capital facilities being
availed from the Consortium Banks.
7. Research & Development (R&D)

The Company's D&E Department is driving and executing the developments towards products,
process and upgradation of manufacturing and Test Equipment.
During the year, the R&D team has also carried out the following activities in specific areas as
outlined below:-
• Development of Intensified C-MOS Camera. The product is under evaluation.
• Re-design of Power Supply Unit (PSUs), Type PS-12I, with encapsulated Voltage Multipliers.
Prototypes are under manufacture. Use of encapsulated Voltage Multipliers enable
improvement in Yield and productivity in the manufacture of the PSUs, especially with Epoxy
based potting compounds for higher Humidity sustenance.
• Design of Upgrade, for existing 2nd Gen PNVDs to make them compatible with I.I. Tube with
AVG Glass Input Window, e.g., Type XD-4, has been prepared. The upgraded design has been
evaluated. Few minor corrections / additions are required to the upgraded design to make the
PNVD fit for supply / use. This is planned to be carried out based on Customer requirement for
such upgraded PNVDs.
On account of the above R&D efforts, the company has progressed in identification of additional
products / improving market potential of the existing products of the Company. The Company is
also in the process of upgrading the existing Products, to provide better product quality and
increased productivity in the manufacture and supply.
The R & D team is planning the following activities in future:-

• Development of Equipment for measurement of Signal to Noise Ratio of I.I. Tube. The
Equipment will augment the measurement capacity at BELOP and will also enable additional
Product for the Company in the Field of Electro-optical Test Equipment.
• Design improvements in Power Supply Unit (PSU), to enhance PSU Manufacturing
Productivity.
• Development of C-MOS Camera Board for the Intensified C-MOS Camera. This development
will improve indigenous content in the developed Product.
8. Customer Satisfaction
As a part of it’s customer focus initiative, workshops on I.I. Tubes was conducted for the
maintenance technicians in Indian Army to increase the awareness on handling of I.I. Tubes.
9. MoU with Government

BELOP has been signing a Memorandum of Understanding (MoU) with it’s holding company
Bharat Electronics Limited (BEL) and the performance parameters and targets for each year are
finalised with the approval of the Department of Public Enterprises (DPE). The Directors are
pleased to inform you that for the year (2016-17) the company’s performance has been rated as
‘Very Good’. The MoU rating for the year 2017-18 would be taken up for evaluation by the
Government in the third quarter of the year.
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10. Human Resources

Your company employed 137 persons as on 31st March 2018 as against 129 persons as on
st
31 March 2017. Of these employees, 37 were executives and 5 were women employees. Twelve
employees were inducted and 4 employees left during the year.
11. Industrial Relations

The pay revision for non-executives is due with effect from 1st April 2017. The negotiations based
on the government guidelines in respect of pay revision of non-executives in CPSE’s is expected to
commence between the Pay Revision Negotiation Committee and the Workers Union.
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The pay revision proposal for Executives below Board level in the company from 1 January, 2017
onwards for a period of ten years is put up for approval to the Ministry of Defence in accordance
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with the revised guidelines (based on the recommendations of 3 PRC) for revision of pay issued
by the Department of Public Enterprises (DPE) vide Office Memorandum No.W-02/0028/2017-
DPE (WC)-GL-XIII/17 dated 3rd August, 2017
Industrial relations during the year were cordial.
12. Environment Management

BELOP maintains clean surroundings and green environment at it’s premises. The company also
undertakes, measures for stringent pollution control, waste water treatment, zero effluent
discharge, energy conservation, water conservation, systematic management and disposal of
hazardous and other forms of waste.
The Sustainability Report at Annexure 4 to the Board’s Report contains further details on
Environment Management.
13. Safety
The company has a structured organisation for safety of it’s personnel, plant and machinery. The
Safety Committee reviews safety requirements and safety performance on a regular basis.
• During the year factory Safety Audit done by M/s National Safety Council, Maharashtra
Chapter, Mumbai and BELOP has taken steps to implement the safety measures
recommended during the above safety audit.
• BELOP is periodically checking all the Safety Gadgets, PPEs being issued to the
employees, & also has conducted health check up for the employees.
14. Quality
The company continues to use 8D and SPC tools for process control quality enhancements
during the year.
15. Vigilance
A Vigilance Officer for BELOP has been appointed from the year 2012-13 by Chief Vigilance
Officer, BEL. The Vigilance Department examines procurements, contracts and processes on
continual basis, conducts regular and surprise inspections and investigates instances of any
suspected transactions referred to it. Any employee or third parties can refer any suspected
transaction to the notice of Vigilance Officer for investigation.
Performance of the Vigilance Department during the year has been satisfactory. All the executives
of the company have filed their Annual Property Returns(APR’s) till the date mandated and 20% of
the APR’s have been scrutinised and found in order. 79 Nos Purchase Orders/Contracts and all
high value orders/contracts have been reviewed/scrutinised during the year and found to be in
order. 60 Regular and 52 Surprise inspections were conducted. There is no case pending under
investigation.
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16. Integrity Pact

The Central Vigilance Commission has taken an initiative of introduction of the Integrity Pact for
large value contracts in all Government Organisations for eradication of corruption in procurement
activity. In line with the directives from the Ministry of Defence and the Central Vigilance
Commission, during the year 2017-18, BELOP has entered into an Integrity Pact with all the
vendors/suppliers/contractors/ service providers for all Orders / Contracts of value ` 300 lakhs and
above.
17. Implementation of RTI Act(RTIA)
The company has designated certain executives as Public Information Officer, Asst. Public
Information Officer and Appellate Authority as specified under the Right to Information Act, 2005.
During the year 2017-18, the company received three requests for information under the RTI
Act, 2005 and the requisite information was furnished within the stipulated time.
18. Directorate
Dr. Ajit. T. Kalghatgi, Director has superannuated on 31st May 2018. The Board places on record
it’s sincere appreciation of the support and guidance provided by Dr. Ajit T. Kalghatgi during his
tenure in the company.
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Mrs. Anandi Ramalingam was appointed as a Director, retiring by rotation at the 27 Annual
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General Meeting of the company held on 9 September 2017. In accordance with the
requirements of the Companies Act, 2013 and Articles of Association of the company,
Mrs. Anandi Ramalingam retires by rotation and being eligible offers herself for re-appointment.
19. Board Meetings/ Change in Directors and Key Managerial Personnel
During the year 5 Board meetings were held, the details of which form part of the Corporate
Governance Report.
The details of changes with regard to the Directorate and Key Managerial Personnel of the
company during the financial year are as follows :-
Date of
Sr.No. Name of Director/KMP Designation appointment Remarks
/cessation
Appointed as Additional Director in
accordance to the nomination by
1 Mr. Koshy Alexander Director 24.10.2017 BEL subsequent to the appointment
as Director (Finance), BEL.
Ceased to be Director due to
withdrawal of nomination,
2 Dr. Ajit T. Kalghatgi Director 31.05.2018 subsequent to his superannuation
as Director (R & D), BEL
20. Directors’ responsibility statement

To the best of their knowledge and belief and according to the information and explanations
obtained by them, your Directors make the following statements in terms of Section 134 (3) ( C ) of
the Companies Act, 2013:
a) that in the preparation of the annual accounts, the applicable accounting standards had been
followed along with proper explanation relating to material departures;
b) that 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 at the end of the financial year and of the profit of the
company for the year ended on that date;
c) that 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) that the directors have prepared the annual accounts on a going concern basis;
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e) that proper internal financial controls were in place and such financial controls were adequate
and were operating effectively;
f) that systems to ensure compliance with the provisions of all applicable laws were in place and
were adequate and operating effectively.
21. 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 Company's operations in future.
22. Events Subsequent to the Date of Financial Statements

Material changes and commitments affecting the financial position of the company which have
occurred between 31stMarch, 2018 and date of signing this report is NIL.
23. Statutory Auditors

The Comptroller and Auditor General of India has appointed M/s M.S.D.N & Associates, Chartered
Accountants, Pune as the statutory auditors for the year 2017-18 pursuant to the provisions of
Section 139(5) of the Companies Act, 2013. The internal audit of the company for the year 2017-18
was conducted by the internal audit team of BEL.
24. Secretarial Auditors

Pursuant to Section 204 of the Companies Act, 2013 and the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 the company has appointed
Mr. Abhijit Dakhawe, practising Company Secretary as the Secretarial Auditor for the year 2017-18.
The Secretarial Audit Report submitted by Mr. Abhijit Dakhawe is enclosed at Annexure 7.
The Secretarial Auditor has observed that the company did not appoint independent directors as
st th
mandated in the Companies Act, 2013 for the period 1 April 2017 to 4 July 2017 and as a result
the composition of the Board and Board Committees viz. Audit Committee, Nomination and
Remuneration Committee and CSR Committee was not in accordance with the requirements of the
Companies Act, 2013 for small part of the year. Subsequently, the government has issued
notification that with effect from 5th July 2017 wholly owned subsidiaries are not required to appoint
independent directors.
BELOP would also be initiating steps to ensure compliance with DPE guidelines on Corporate
Governance.
25. Auditors’ Report

The Auditors’ Report on the Annual accounts for the year 2017-18 and the ‘Nil’ comments report of
the Comptroller & Auditor General of India for the year 2017-18 under Section 143(6)(b) of the
Companies Act, 2013 are appended to this report.
26. Composition of the Audit Committee

The composition of the Audit Committee is as follows :
1) Dr. Ajit.T. Kalghatgi (from 28.11.2016) Chairman**
2) Mr. Koshy Alexander (from 24.10.2017) Chairman***
3) Mrs. Anandi Ramalingam Member
4) Mr. R.N. Bagdalkar (w.e.f. 05.07.2018) Member
** Chairman upto 31.05.2018 *** Chairman w.e.f. 05.07.2018
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27. Related Party Transactions

There were no materially significant related party transactions with the company’s promoters,
Directors, Management or their relatives, which could have had a potential conflict with the
interests of the company. Transactions with related parties that were entered into during the
financial year were on an arm’s length basis and were in the ordinary course of business. All
related party transactions are placed before the Audit Committee as also the Board for
approval, if required. Members may refer to the notes to the accounts for details of related party
transactions. Information pursuant to Section 134(3)(h) of the Companies Act, 2013 read with
Rule 8(2) of the Companies (Accounts) Rules, 2014 is enclosed at Annexure 8.
28. Loans / Guarantees / Investments

The particulars of loans, guarantees and investments under Section 186 of the Companies Act,
2013 are ‘NIL’.
29. Extract of Annual Return
In accordance with Section 134(3)(a) of the Companies Act, 2013 an extract of the Annual
Return in Form MGT 9 is annexed herewith as Annexure 5.
30. Remuneration Policy
The Board has on the recommendation of the Nomination & Remuneration Committee framed a
Draft Policy relating to the remuneration for the directors, key managerial personnel and other
employees. The details are set out in the Corporate Governance Report at Annexure 2.
31. 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.
32. Management Discussion and Analysis Report

The Management Discussion and Analysis Report as per the Government (DPE) Guidelines on
Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report
at Annexure 1.
33. Corporate Governance Report

A report on Corporate Governance as per the DPE guidelines for Central Public Enterprises is
attached to this Report at Annexure 2.
34. Risk Management

The measures taken for managing risks is set out in the Corporate Governance Report.
35. Corporate Social Responsibility

As per the provisions of Section 135 of the Companies Act, 2013 and The Companies (Corporate
Social Responsibility) Rules, 2014 it is recommended that the company should undertake CSR
activities and spend at least two percent of the average net profits of the three preceding financial
years on CSR activities.
BELOP has developed Electronics Laboratory at ITI, Khed, Pune and handed it over during
May 2018. The said Laboratory was built at a total cost of Rs. 14.16 lakhs utilising funds from
the CSR 2016-17 and CSR 2017-18 budget. BELOP is also in the process of carrying out other
CSR activities approved by the CSR Committee.
Pursuant to Rule 8 of The Companies (Corporate Social Responsibility) Rules, 2014 a report on
CSR activities for the financial year 2017-18 is annexed herewith at Annexure 3.
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36. Sustainability Report

As required under the Guidelines on “Sustainable Development” issued by the Department of
Public Enterprises, Govt. of India a separate chapter on the company’s efforts on “Sustainable
Development” is annexed to this Report at Annexure 4.
37. Particulars of Employees

During the financial year there were no employees in the company who were employed
throughout the financial year and in receipt of the remuneration, in aggregate more than
` 60 lakhs per annum or who were employed for part of the financial year and in receipt of the
remuneration, in aggregate more than ` 5 lakhs per month.
38. 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. The company has constituted an internal complaints
committee to redress complaints relating to sexual harassment. No complaints on sexual
harassment has been received during the year.
39. Other Disclosures

Information required to be disclosed in accordance with Section 134(3)(m) of the Companies
Act, 2013 read with Companies (Accounts) Rules, 2014 regarding conservation of energy,
technology absorption and foreign exchange earnings and outgo is given at Annexure 6.
40. Acknowledgement
Your Directors place on record their appreciation for the valuable support received from all the
Customers particularly the Defence Services and the para military forces and also the Ministry
of Defence, Department of Defence Production and look forward to their continued support and
co-operation in future. Your Directors also appreciate the co-operation extended by
M/s Photonis for implementation of ToT at BELOP and look forward to a continued fruitful
association in future. Your Directors express their sincere thanks to the Comptroller and Auditor
General of India, Chairman, Members and Employees of the Audit Board, Statutory Auditors,
Cost Auditors, Secretarial Auditors, Company’s Bankers and Vendors. Your Directors
appreciate the sincere efforts put in by all the employees at all levels which enabled your
company to achieve the good performance during the year. Your Directors express their
appreciation and gratitude for the support received from the holding Company,
M/s Bharat Electronics Limited and look forward to it’s continued support and participation in
sustaining the growth of the company in the coming years.
For and on behalf of the Board

-sd-
M.V. GOWTAMA
Chairman
Place : Bengaluru
Date : 13th August 2018
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Annexure No. 1 to Board’s Report

MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A) Industry Structure and Developments, Strengths, Weaknesses, Opportunities and Threats

and Major Initiatives undertaken and planned to ensure sustained performance and growth
a) General outlook of economy, industry in which the Company operates, market conditions
and how these impact the Company, measures taken / action plan to protect the interest of
the Company;
As per first Advance Estimates released by Central Statistics Office (CSO), the Indian
economy’s growth is estimated to be 6.5 % in 2017-18, after registering GDP growth of over 7%
for the third year in succession in 2016-17. Even with this growth for 2017-18, GDP growth
has averaged 7.3 % for the period from 2014-15 to 2017-18, which is the highest among the
major economies of the world. In addition to the introduction of GST, the year also witnessed
significant steps being undertaken towards resolution of problems associated with
non-performing assets of the banks, further liberalization of FDI, etc., thus strengthening the
momentum of reforms. The growth of exports rebounded into positive one during 2016-17 and
strengthened further in 2017-18, after remaining in negative territory for a couple of years.
Though, concerns have been expressed about growing protectionist tendencies in some
countries, it remains to be seen as to how the situation unfolds. With world growth likely to
witness moderate improvement in 2018, expectation of greater stability in GST, likely recovery
in investment levels, and ongoing structural reforms, among others, should be supporting
higher growth and on balance, country’s economic performance should witness an
improvement in 2018-19.
b) SWOT Analysis
♣ Strengths:
• Availability of State of the Art Technology, Infrastructure and trained Manpower to manufacture
high performance I.I Tubes indigenously
• Over two decades of experience resulting in excellent domain knowledge and core
competencies in the area of Image Intensifier Tubes.
• Established Vendor base for supply of Raw Materials and Components for sustained
manufacture of I.I. Tubes.
• Strong D&E and Project Team for continual upgradation of Processes, Manufacturing and Test
Infrastructure to provide better Product to the Customers.
• Strong customer support due to long term commitment to customers
.
• Good work ethics.
• Quality Management System (QMS) certified to ISO 9001:2015
♣ Weaknesses:
• Lack of diversified product portfolio, dependence on single product
• Major Raw Materials & Components (RM&Cs) are not available in the Country. Needs
increased technical efforts to develop indigenous sources for supply of import substitutes for
RM&Cs.
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♣ Opportunities:
• Growing Defence and Security needs
• Potential Market for High Performance I.I. Tubes for minimum 8-10 Years considering
enhanced Defence and internal Security needs of the Country.
• Government’s emphasis on Make in India manufacture of defence equipments
• Increased impetus on modernization of central paramilitary forces
♣ Threats:
• Increasing competition from Private players
• Low Prices of NVD’s quoted by competition using refurbished I.I. Tube or using I.I. Tubes with
low image quality on account of image quality requirements not being specified by user
department
• Rapid changes in night vision technology
• Policy interventions favouring Private sector
c) Major initiatives undertaken and planned to ensure sustained performance and growth:
a) Technology updation and R & D
BELOP has commenced supply of XD-4 I.I. Tubes through in-depth manufacturing to it’s
customers from December 2014 onwards. The company is also making efforts for
upgradation of its manufacturing & Test Infrastructure through in-house R & D. In order
to meet the requirements of further enhanced performance Tubes by the Indian Army,
the Company has entered, into a ToT Agreement with M/s Photonis SAS, France
and their Sister Company, M/s Imaging Sensors International, France for the
manufacture XR-5 I.I. Tubes during May 2014. The XR-5 project is under final stages of
implementation.
The Company is also making systematic efforts to diversify into associated / new products
to increase the Sales / reduce the risk of incurring fixed expenditure during the period of
non-receipt / delayed receipt of Customer Orders.
d) Specific Measures on Risk Management, Cost Reduction and Indigenisation

a) Risk Management
The Company has an established Risk Management Policy, which outlines a framework for
risk identification, evaluation, prioritization and treatment of various risks associated with
different areas of operation such as technology, product, market, human resources, finance
and other operations. The company has put in place a comprehensive’ Risk Management
Framework’ for the continuous identification, updation, evaluation, prioritization and
management of risks. Under this framework, at Apex Level there is Risk Management
Committee(RMC) headed by the Chief Executive Officer (BELOP) and members drawn
from important functional areas like manufacturing, Marketing, Design and Engineering,
Finance and HR.
The Risk Champion (RC) is at the level of Sr. DGM. The RMC reviews the risk management
efforts in the company as a whole on a quarterly basis. The RMC submits quarterly report to
the management and the Audit Committee. The company reports about the status of RM to
the Board annually.
Certain risks which have been identified are being addressed by introducing suitable Risk
mitigation processes. Similarly, in case of any key managerial decisions the risk factors are
highlighted for the decision making authority to take informed decision.
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b) Cost Reduction and Indigenisation

The company’s Cost Reduction activities focus both on manufacturing and
non-manufacturing areas and encompass all facets of business like production,
administration, finance, services etc. The company has carried out various activities in
manufacturing and sub-contract area which has resulted in increase in the quality and
productivity and in consequent cost reduction.
B) Internal Control System and it’s adequacy

The company has an adequate system of Internal Control commensurate with it’s size and
nature of it’s operations. These have been designed to provide measures with a view to
provide reasonable assurance with regard to recording and providing reliable financial and
operational information, complying with applicable statutes, safeguarding assets from
unauthorised use or losses, executing transactions with proper authorisation and ensuring
compliance of company’s policies and procedures issued from time to time.
The internal audit of the company for the year 2017-18 was conducted by the internal audit team
of BEL.
Your company has an Audit Committee which reviews the Internal Control Systems and the
significant audit observations submitted by the internal audit. The Audit Committee meets the
company’s Statutory Auditors to ascertain, inter alia, their views on the financial statements,
including the financial reporting system, compliance to accounting policies and procedures, the
adequacy and effectiveness of the internal control systems followed by the company. The
adequacy of the Internal Control procedures is reviewed and reported by the Statutory Auditors
in their Audit Report. BELOP being a Government Company is subject to audit by the
Comptroller and Auditor General of India.
C) Financial / Operational Performance

a. Strategy & Objectives
The main objectives of the financing strategy of the company are as follows:-
(i) To make available funds by effective cash flow management with a view to have least
borrowing and consequently least interest cost;
(ii) To maintain the highest credit rating in the short term to be able to raise funds at most
economical rates as and when required;
(iii) To effectively execute tax planning thereby improving the post tax yield;
(iv) To meet the expectations of the various stakeholders;
(v) To maintain highest standards of financial reporting by following the mandatory accounting
standards
Each of the objectives listed continue to be accorded the highest priority by BELOP. During the
financial year, the company made efforts to fund the working capital needs and the funding for
capital expenditure from the internal resources to the maximum extent and minimising the
borrowing for working capital from banks. During the year the company has also partially repaid
the working capital loan obtained from the holding company.
14
b. Performance Highlights
` In Lakhs
Particulars 2017-2018 2016-2017
Gross Sales 12,164 12,388

Total Expenditure Before Financing Costs 12,162 12,920
Profit Before Financing Costs and Tax 1,750 1,600
Operating Margin(PBIT/Gross Sales) Ratio% 14.38 12.92
Profit After Tax 1,155 484
No.of Days Inventory/Value of Production (DPE Method) 96 85
No. of Days Trade Receivables/Turnover 42 179
Current Ratio 1.23 1.03
Debt Equity Ratio 11.23 14.02
c. Analysis of Financial performance of 2017-18

• Turnover (Net) registered a growth of 15.47% from ` 10,008 Lakhs in 2016-17 to `11,556 Lakhs
in 2017-18.
• Value of Production has decreased by ` 528 Lakhs from ` 12,738 Lakhs in 2016-17 to
` 12,210 Lakhs in 2017-18.
• PAT has increased by 138.64% from ` 484 Lakhs in 2016-17 to ` 1,155 Lakhs in 2017-18.
• PAT to Turnover(net) Ratio in 2017-18 is 9.99%.
• Turnover (Net) per Employee have increased by 6.33% from ` 79 Lakhs in 2016-17 to
` 84 Lakhs in 2017-18.
• Earnings per share is ` 19.20.
• Net worth has grown by 17.19% from ` 16,059 Lakhs in 2016-17 to ` 18,820 Lakhs in 2017-18.
D) Development in Human Resources

The company has provided training on technical and quality related topics of total 430 mandays
amounting to an average of 3.14 mandays per employee.
15
Annexure No. 2 to the Board’s Report

CORPORATE GOVERNANCE REPORT
Philosophy and Code of Governance
BELOP’s philosophy of Corporate Governance is based on the principles of honesty, integrity,
accountability, adequate disclosures, legal compliances, transparency in decision-making and
avoiding conflicts of interest. BELOP believes in customer satisfaction, financial prudence and
commitment to values. Our corporate structure, business and disclosure practices have been aligned
to our Corporate Governance philosophy.
Board of Directors
Composition
Pursuant to the Companies Act, 2013, BELOP being a wholly owned subsidiary of Bharat Electronics
Limited is a ‘Government Company”.
At present, the Board of Directors comprises of four Directors including the Chairman. The Chairman
of the BEL Board is the Chairman of the Board and BELOP. All the four Directors are nominated by BEL
(as per the Articles of Association) of BELOP.
The composition of the Board of Directors is given below :-
a) Shri. M.V. Gowtama,Chairman CMD,BEL & Chairman, BELOP
b) Dr. Ajit.T. Kalghatgi, Director (upto 31.05.2018) Director (R&D),BEL& Director, BELOP
c) Mrs. Anandi Ramalingam Director(Mktg.),BEL & Director, BELOP
d) Mr. Koshy Alexander(w.e.f. 24.10.2017) Director(Fin.),BEL & Director, BELOP
e) Mr. R.N. Bagdalkar(w.e.f.05.07.2018) Director(HR),BEL & Director, BELOP
Meetings and Attendance

During the financial year ended 31.03.2018, five Board Meetings were held and the maximum interval
between any two meetings was 92 days. The Board Meetings were held on 20.05.2017, 07.08.2017,
24.10.2017, 25.01.2018, and 22.03.2018. Details of attendance of the Directors at the Board
Meetings, Annual General Meeting and the number of other Directorships/Committee memberships
held by them during 2017-18 etc. are given below :-
Meetings Attendance
No. of *Number of Committee
Directors held No. of at the last
Sr. other membership across
during Board AGM held
No. th director all companies
respective Meetings on 9
ships
tenure of attended September As As
Part time Directors held
Director 2017 Chairman Member
1 Mr. M.V.Gowtama 5 4 Yes 1 Nil Nil
2 Dr. Ajit .T. Kalghatgi 5 5 Yes 2 2 0
3 Mrs. Anandi Ramalingam 5 4 Yes 2 Nil 1
4 Mr. Koshy Alexander 3 2 NA 3 Nil 2
• Membership of Audit Committee and Stakeholders’ Relationship Committee alone are considered.
Code of Conduct
Board of Directors of your company has laid down a Code of Conduct for all Board members and senior
management personnel of the company as per the Guidelines on Corporate Governance for Central
Public Sector Enterprises issued by the Department of Public Enterprises(DPE Guidelines). All Board
members and senior management personnel have affirmed compliance with the Code of Conduct
during the year 2017-18. A declaration to this effect signed by the Chairman is attached to this Report.
16
Audit Committee
The composition of the Company’s Audit Committee is three Directors as specified in Section 177 of the
Companies Act, 2013. In addition, the Statutory Auditor of the Company and the Internal Auditor attend
the meetings of the Audit Committee. The Company Secretary is the Secretary to the Audit Committee.
The Chairman of the Audit Committee attended the Annual General Meeting of the Company held on
9th September 2017. The terms of reference of the Audit Committee are as specified in Section 177
of the Companies Act, 2013 and as per the DPE guidelines.
Some of the important functions performed by the Audit Committee are as follows:
• Oversight of the Company’s financial reporting process and the disclosure of financial information
to ensure that the financial statement is correct, sufficient and credible
• Reviewing the quarterly unaudited financial statements
• Approval of remuneration to statutory auditors
• Recommendation for appointment, remuneration and terms of appointment of auditors of the
company
• Reviewing the Management Discussion & Analysis Report on financial and operational
performance
• Reviewing the adequacy and effectiveness of the Company’s system and internal controls and
Governance and audit Processes and risk management systems
• Reviewing and discussing with the Management the company’s major financial risk exposures and
steps taken by the Management to monitor and control such exposure
• Review the significant audit findings from the statutory and internal audits carried out, the
recommendations and Management’s response thereto.
• To grant approval for transactions with related parties including any subsequent modifications
thereto.
• Scrutiny of inter-corporate loans and investments
• Valuation of undertakings or assets of the company, wherever it is necessary
During the year ended 31.03.2018, the Audit Committee met five times on 20.05.2017, 07.08.2017,
24.10.2017, 25.01.2018 and 22.03.2018.
The composition of the Audit Committee is as outlined below:-
1) Dr. Ajit.T. Kalghatgi (upto 31.05.2018) Chairman**
2) Mr. Koshy Alexander (w.e.f. 24.10.2017) Chairman***
Chairman**(w.e.f. 28.11.2016) Chairman ***(w.e.f. 05.07.2018)
The attendance of the Chairman and members of the Audit Committee in the above meetings was as
follows:-
Meetings held
Name No. of meetings
during respective
attended
tenure of Director
Dr. Ajit T. Kalghatgi 5 5
Mrs. Anandi Ramalingam 5 4
Mr. Koshy Alexander 3 2
17
Risk Management
The company has put in place a comprehensive ’Risk Management Framework’ for the continuous
identification, updation, evaluation, prioritization and management of risks. Under this framework, at Apex
Level there is Risk Management Committee(RMC) headed by the Chief Executive Officer (BELOP) and
members drawn from important functional areas like manufacturing, Marketing, Design and Engineering,
Finance and HR. The Risk Champion (RC) is at the level of Sr.DGM. The RMC reviews the risk management
efforts in the company as a whole on a quarterly basis. The RMC submits quarterly report to the
management and the Audit Committee. The company reports about the status of RM to the Board annually.
Nomination and Remuneration Committee

The composition of the Nomination and Remuneration Committee is as outlined below:-
1) Dr. Ajit.T. Kalghatgi(upto 31.05.2018) Chairman**
2) Mr. R.N. Bagdalkar(w.e.f. 05.07.2018) Chairman***
4) Mr. Koshy Alexander(w.e.f. 24.10.2017) Member
Chairman**(w.e.f. 28.11.2016 and upto 31.05.2018) Chairman *** (w.e.f. 05.07.2018)
During the year ended 31.03.2018, the NRC Committee met five times on 20.05.2017, 07.08.2017,
24.10.2017, 25.01.2018 and 22.03.2018.
The attendance of the Chairman and members of the Nomination and Remuneration Committee in the
above meetings was as follows:-
Meetings held
No. of meetings
Name during respective
attended
tenure of Director
Some of the functions of the Nomination and Remuneration Committee is as follows:-
• Recommending policy to the Board in line with the provisions of the Companies Act, 2013, DPE
guidelines and Presidential directives/guidelines issued by the Government of India.
• Recommendation to the Board of all pay related matters
Remuneration Policy
a) Remuneration to Directors
BELOP would fix the remuneration of Directors whenever required, in a manner that is compliant
with the prescriptions laid down by Government of India communicated from the Ministry of
Defence, from time to time.
b) Remuneration to Key Managerial Personnel(KMP) and other Employees
BELOP would ensure the following while fixing the remuneration of the Key Managerial
Personnel (KMP) and other Employees
i) The company shall abide by any directives issued by the Government of India in this regard.
ii) The level and composition of remuneration fixed would be reasonable and sufficient to attract,
retain and motivate the employees required to run the company successfully.
iii) The level of remuneration would meet the appropriate benchmarks and there would exist a
clear relationship between performance and remuneration.
iv) The remuneration would comprise of a fixed pay and incentive pay in a judicious proportion
appropriate to the working of the company and enabling the company to achieve it’s short-term
and long term performance objectives and goals
18
Remuneration to Directors
The Company does not pay any remuneration to its Directors. The Company has not issued any stock
options to its Directors.
Corporate Social Responsibility Committee

In pursuant to the provisions of section 135 of the Companies Act, 2013 the Corporate Social
Responsibility Committee has been constituted.
The salient terms of reference of the Corporate Social Responsibility Committee (CSR) include
a) To formulate and recommend to the Board, a Corporate Social Responsibility Policy which
shall indicate the activities to be undertaken by the company as specified in Schedule VII.
b) To recommend the amount of expenditure to be incurred on the activities referred to in clause ‘a’
c) To monitor the Corporate Social Responsibility Policy of the company from time to time.
The composition of the Corporate Social Responsibility Committee is as outlined below:-

1) Dr. Ajit.T. Kalghatgi(upto 31.05.2018) Chairman**
2) Mrs. Anandi Ramalingam Chairman***
3) Mr. R.N. Bagdalkar(w.e.f. 05.07.2018) Member
4) Mr. Koshy Alexander(w.e.f. 24.10.2017) Member
** Chairman w.e.f. 28.11.2016 and upto 31.05.2018 *** Chairman w.e.f. 05.07.2018
During the year ended 31.03.2018, the CSR Committee met five times on 20.05.2017, 07.08.2017,
24.10.2017, 25.01.2018 and 22.03.2018.
The attendance of the Chairman and members of the Corporate Social Responsibility Committee in the
above meetings was as follows:-
Meetings held
No. of meetings
Name during respective
attended
tenure of Director
The details of the various CSR activities is furnished at Annexure 3.

Directors’ Shareholding
No Director holds Equity shares in the company as on 31.03.2018.
Other Board Subcommittees

Your Directors have constituted the following Subcommittees of the Board:-
Investment Committee consisting of the Chairman, two Directors, CEO, and Head of Finance to
approve investment of short-term surplus funds.
Related Party Transactions

All transactions with related parties were in the ordinary course of business and on an arms length
pricing basis.
19
General Body Meetings

Details of last three Annual General Meetings are as follows:-
Year Location Date & Time

2014-15 Registered Office 31st August 2015 at 12.30 PM
2015-16 Registered Office 16th September 2016 at 12.30 PM
2016-17 Registered Office 9th September 2017 at 12.30 PM
All the resolutions, including special resolutions, set out in the respective notices of last three Annual
General Meetings were passed by the shareholders. No resolutions were put through postal ballot last
year.
Disclosures
(a) The Company has not entered into any materially significant related party transactions that may
have potential conflict with the interests of the Company at large. Nonetheless, transactions with
related parties have been disclosed in point No. 7 of Note 39 of Notes to Accounts in the Annual
Report.
(b) No other expenses, which are personal in nature, were incurred for the Board of Directors and Top
Management.
( c) No items of expenditure, other than those directly related to its business or incidental thereto, and
those spent towards the welfare of its employees/ex-employees, were debited in books of
accounts.
(d) Administrative and office expenses as a percentage of total expenses and reasons for increase, if
any:
Administrative and office expenses were 0.89 % of the total expenses for the year 2017-18 as against
1.05 % in the previous year. No significant deviation during the year.
MCA-21 Compliance
The e-governance initiative of the Ministry of Corporate Affairs in the administration of the Companies
Act, 1956 (MCA-21) provides the public, corporate entities and others an easy and secure online
access to the corporate information including the filing of documents and public access to the
information required to be in public domain under the statute, at any time and from anywhere. The
Company has complied with all mandatory e-filing requirements under MCA-21, during 2017-18.
Presidential Directives and Guidelines

Your company is required to follow the Presidential Directives and guidelines issued by the
Government of India from time to time regarding reservation for SC’s, ST’s and OBC’s in letter and
spirit. Liaison Officer is required to be appointed in the Company to ensure implementation of the
Government Directives. Officials dealing with the subject shall be provided necessary training to enable
him/her to update his/her knowledge on the subject and perform their job effectively. The verification of
the caste certificates submitted by the employees at the time of joining needs to be carried out in the
Company to ascertain the representation. The recruitment/promotion rosters are required to be
prepared and maintained in the Company after completion of the verification of caste certificates. Your
company is required to implement the Government Directives on reservation for persons with
Disabilities and Ex-Servicemen. The company has implemented the above presidential directives and
guidelines except appointment of Liaison Officer which is proposed to be undertaken during 2018-19.
20
st
Shareholding Pattern as on 31 March 2018
Category No. of % Holding

Sr. No. of Shares
Shareholders
1 Promoter – M/s Bharat Electronics Limited 1 66,31,367 100.00
st
Top 10 Shareholders as on 31 March 2018
Sr. Category No. of Shares % Holding
1 Promoter – M/s Bharat Electronics Limited 66,31,367 100.00
Credit Rating
ICRA has assigned the following credit ratings of the Company for 2017-18:
(i) Long-term rating of [ICRA]AA+ (pronounced ICRA double A plus) to ` 4000 lakhs fund based
bank limits.
(ii) Short-term rating of [ICRA]A1+ (pronounced ICRA A one plus) to ` 600 lakhs non-fund based
bank limits.
st
The outlook on the long-term rating is 'stable'. These ratings are valid till 31 October 2018.
CEO/CFO Certification
In terms of the requirements of DPE Guidelines, the CEO/CFO certificate has been obtained and
placed before the Audit Committee and the Board and is provided in this Annual report.
Compliance
The company has been submitting quarterly compliance report on Corporate Governance to the DPE.
The DPE guidelines on Corporate Governance for CPSEs provide that the CPSEs would be graded on
the basis of their compliance with the guidelines.
Registered Office/Address for Correspondence

BEL Optronic Devices Ltd.
Registered Office, EL-30,’J’, Block, MIDC, Bhosari Industrial Area, Pune- 411026
Phone: (020) 27130981/2/3/4; Fax: (020) 27130589; e-mail: info@belop.co.in
21
Declaration
Pursuant to the Department of Public Enterprises(DPE) Guidelines on Corporate Governance for
Central Public Sector Enterprises as contained in the DPE OM No. 18(8)/2005-GM dt. 14th May 2010,
all Board Members and Senior Management Personnel of the Company have affirmed compliance with
the Code of Business Conduct & Ethics for Board Members, KMP’s & Senior Management of BEL
Optronic Devices Limited for the year ended 31st March 2018.
For BEL OPTRONIC DEVICES LIMITED

-sd-
M.V. Gowtama
Chairman
Place:- Bengaluru
Date :- 13th August 2018
22
Annexure No. 3 to Board’s Report

REPORT ON CSR ACTIVITIES
1. A brief outline of the company’s CSR policy:-
a) BELOP recognises and accepts the Corporate Social Responsibility it shoulders whereby it
resolves to serve the environment that has sustained the activities and endeavours of BELOP
over the years.
b) BELOP is committed to its stakeholders to conduct CSR activities in an economically, socially
and environmentally sustainable manner that is transparent and ethical.
2. The Composition of the CSR Committee :-
1) Dr. Ajit.T. Kalghatgi (upto 31.05.2018) Chairman**
2) Mrs. Anandi Ramalingam Chairman ***
3) Dr. Koshy Alexander (w.e.f. 24.10.2017) Member
** Chairman w.e.f 28.11.2016 and upto 31.05.2018 *** Chairman w.e.f 05.07.2018
3. Average net profit of the company for last three financial years:-
Average net profit is ` 635.54 lakhs
4. Prescribed CSR Expenditure (two percent of the average net profit of the last three financial
years) :-
The company during the financial year 2017-18 is required to spend ` 12.71 lakhs.
5. Details of CSR spent during the financial year:-
BELOP has undertaken CSR activities from the year 2016-17 onwards and the total amount
provided in the books of accounts towards CSR activities for the years 2016-17 and 2017-18 is
` 24.47 lakhs. The actual expenditure incurred during the financial year 2017-18 is ` 6.15 lakhs.
The following projects have been undertaken and planned with utilisation of CSR funds from
2016-17 to 2018-19 as outlined below:-
i) Skill Development Activities
a) Development of Electronics Laboratory at ITI, Khed, Pune (Estimated Cost

` 14.16 lakhs)
This laboratory was completed during May 2018. (Funding from CSR-2016-17 budget
`11.76 lakhs and from 2017-18 budget ` 2.40 lakhs). The actual expenditure incurred
during the financial year 2017-18 is ` 6.15 lakhs.
Development of Smart Classroom at ITI, Khed, Pune -Total Cost - `11.50 lakhs.
This project is expected to be completed by December 2018 (Funding from
CSR-2017-18 budget ` 6.07 lakhs and from 2018-19 budget ` 5.43 lakhs).
ii) Swach Bharat Activities

a) Building of Compost Pit in Municipal Garden – Total Cost ` 2.15 lakhs
This project is expected to be completed by December 2018 (Funding from
CSR-2017-18 budget). The NoC from the PCMC is awaited.
b) Development of Garden around BELOP premises – Total Cost ` 8.61 lakhs
This project is expected to be completed by December 2018. (Funding from
CSR-2017-18 budget ` 2.09 lakhs and from 2018-19 budget ` 6.52 lakhs). The NoC
from the PCMC is awaited.
23
6. Reasons for not spending the two percent of the average net profit of the last three financial
years or any part thereof on CSR activities during the year:-
BELOP has undertaken CSR activities from the year 2016-17 onwards and the total amount
provided in the books of accounts towards CSR activities for the years 2016-17 and 2017-18 is
` 24.47 lakhs. The actual expenditure incurred during the financial year 2017-18 is ` 6.15 lakhs.
BELOP has been unable to spend the entire amount during 2017-18 due to insufficient time,
however it is expected that it would complete the activities planned with CSR budget 2017-18 in
the year 2018-19.
7. Responsibility statement of the CSR Committee that the implementation and monitoring of
CSR Policy, is in compliance with CSR objectives and Policy of the company is furnished
below:-
Responsibility Statement
The CSR Committee of BELOP hereby confirms that the implementation and monitoring of CSR Policy,
is in compliance with CSR objectives and Policy of the Company.
-sd-
(Anandi Ramalingam)
Chairman, CSR –Committee, BELOP
Place:- Bengaluru
th
Date :- 13 August 2018
24
Annexure No.4 to Board’s Report

SUSTAINABILITY REPORT
Government of India, Department of Public Enterprises (DPE) vide Office Memorandum
rd
No. 3(9)-2010-DPE (MoU) dated 23 September 2011 issued guidelines on Sustainable Development
for Central Public Enterprises.
Above DPE guidelines define” Sustainable Development” as “Development that meets the needs of the
present without compromising the ability of future generations to meet their own needs. Sustainable
Development involves an enduring and balanced approach to economic activity, social progress and
environmental responsibility.
BELOP is committed to sustain the environment with growth. It maintains a green environment in it’s
premises and has implemented various environmental management practices.
Sustainable Development Activities

Emissions to Air
Air emissions from process are controlled through appropriate air pollution control Equipment. Air
emission stacks are monitored as per Air (Prevention & Control of Pollution) Act, 1981 on quarterly
basis.
Water Management
As per MPCB Consent, Company has installed water meters at appropriate locations and is monitoring
consumption of water on daily basis.
Noise Pollution
The noise levels in the factory premises are measured periodically, as per MPCB Consent & Act on
quarterly basis.
Water Pollution
The industrial effluents are treated in ETP Plant & disposed off as per MPCB norms. The company has
also installed Sewage Treatment Plant (STP) for treatment of effluents & recycled water is used for
garden purpose.
Hazardous Waste Management System

The company is disposing its Hazardous Waste as per Hazardous Waste Rules 2008, to MPCB
authorised recycler. Regular returns of the same are being submitted in Form IV every year. During the
year the company has made efforts to re-use certain hazardous items used in manufacturing
processes in order to reduce their consumption and potential impact on the environment.
On Site Emergency Plan and Systems

Local & Company wide Mock Drill are conducted periodically & On Site Emergency Plan has been
displayed in factory premises at prominent locations.
Ecological Sustainability
The company focuses on planting trees and maintaining a green and clean environment.
25
Annexure No.5 to Board’s Report
Form No. MGT-9

EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31/03/2018
[Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
i. REGISTRATION AND OTHER DETAILS:
i) CIN: U31909PN1990GOI058096
ii) Registration Date: 10th September 1990
iii) Name of the Company BEL Optronic Devices Limited
iv) Category/Sub-Category of the Company Company having Share Capital
v) Address of the Registered office and EL 30, J Block, Bhosari Industrial Area,Pune 411026
contact details Tel No.020-27130981/2/3
vi) Whether Listed Company No
vii) Name, Address and contact details of Not Applicable

Registrar and Share Transfer Agent, if any
ii. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall
be stated:-
Sl. Name and Description of main NIC Code of the % to total turnover
No. products / services Product/service of the company
1 Image Intensifier Tube 3320 100.00%
iii. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -
Name and Address of the Holding/ "% of “Applicable

Sl. CIN/GLN Subsidiary/ shares
No. company Section"
Associate held"
1 Bharat Electronics Limited L32309KA1954GOI000787 Holding 100% 2(46)
26
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
(i) Category-wise Share Holding
No. of Shares held at the No. of Shares held at the end

beginning of the year of the year "% Change
"Category of
% of % of during
Shareholders"
Demat Physical Total Total Demat Physical Total Total the year"
Shares Shares
A. Promoters
(1) Indian
a) Individual / HUF
b) Central Govt
c) State Govt(s)
d) Bodies Corporate - 59,22,635 59,22,635 100.00 - 66,31,367 66,31,367 100.00
e) Banks / FI - - - - - - -
f) Any other - - - -
Sub Total(A) (1) - 59,22,635 59,22,635 100.00 66,31,367 66,31,367 100.00 11.97
(2) Foreign
a) NRI-Individuals
b) Other-Individuals -
c) Bodies Corporate
d) Banks/FI
e) Any other
Sub Total(A) (2)
Total Shareholding of
- 59,22,635 59,22,635 100.00 - 66,31,367 66,31,367 100.00 7,08,732
Promoter(A) = [(A)(1)+(A)(2)]
B. Public Shareholding
1. Institutions
a) Mutual Funds
b) Banks / FI
c) Central Govt.
d) State Govt(s).
e) Venture Capital Funds
f) Insurance Companies
g) FIIs
h) Foreign Venture Capital Funds
"i) Others (specify)- Shares
held by Trustee"
Sub-total (B)(1):-
2. Non-Institutions
a) Bodies Corporate
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders
holding nominal share - - - - - - -
capital upto Rs. 1 lakh
ii) Individual shareholders
holding nominal share
capital in excess ofRs 1 lakh
c) Others (specify)
Sub-total (B)(2):- - - - - - - - - -
Total Public Shareholding
- - - - - - - - -
(B) = [(B)(1)+ (B)(2)]
C. Shares held by Custodian
for GDRs & ADRs
Grand Total (A+B+C) - 59,22,635 59,22,635 100 - 66,31,367 66,31,367 100 7,08,732
27
(ii) Shareholding of Promoter

Share holding at the beginning Share holding at the end
of the year of the year
% change
% of % of
in share
Sl. % of Shares % of Shares
Shareholder’s Name holding
No. total Pledged/ total Pledged/
No. of during
Shares encumbered No. of Shares encumbered
Shares Shares the year
of the to total of the to total
company shares company shares
1 Bharat Electronics Ltd 59,22,635 100.00 - 66,31,367 100.00 - -
Total 59,22,635 100.00 - 66,31,367 100.00 - -
(iii) Change in Promoters’ Shareholding ( please specify, if there is no change)

Shareholding at the beginning Cumulative Shareholding
of the year during the year
Sl. For Each of the Top 10 Shareholders
No. % of total % of total
No. of shares shares of No. of shares shares of
the company the company
1 Bharat Electronics Ltd 59,22,635 100.00 66,31,367 100.00
(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders
of GDRs and ADRs):
Shareholding at the beginning Shareholding during the
of the year (01.04.2017) year (31.03.2018)
Sl. For Each of the Top 10 Shareholders
No. % of total % of total
NIL
(v) Shareholding of Directors and Key Managerial Personnel:
Shareholding at the beginning Cumulative Shareholding

of the year during the year
Sl.
For Each of the Directors and KMP %of total %of total
No.
At the beginning of the year None of the Directors and KMP Holds Shares in the Company
Date wise Increase / Decrease in
Promoters Share holding during the year
specifying the reasons for increase / None of the Directors and KMP Holds Shares in the Company
decrease (e.g. allotment / transfer / bonus/
sweat equity etc):
At the end of the year None of the Directors and KMP Holds Shares in the Company
28
INDEBTEDNESS
V. Indebtedness of the Company including interest outstanding/accrued but not

due for payment
Secured Loans Total
excluding Unsecured Deposits Indebtedness
Particulars
deposits Loans (Rs in Lakhs)
Indebtedness at the beginning of the
financial year
i) Principal Amount 1,358.00 4,349.00 - 5,707.00

ii) Interest due but not paid - - - -
iii) Interest accrued but not due 2.00 26.00 - 28.00
Total (i+ii+iii) 1,360.00 4,375.00 - 5,735.00
Change in Indebtedness during the
financial year
* Addition 13.00 - - 13.00
* Reduction - (1,018.00) - (1,018.00)
Net Change 13.00 1,018.00 - 1,031.00
Indebtedness at the end of the
financial year
i) Principal Amount 1,370.00 3,339.00 - 4,709.00
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 3.00 18.00 - 21.00
Total (i+ii+iii) 1,373.00 3,357.00 - 4,730.00
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl. Name of MD/WTD/Manager

Particulars of Remuneration Total Amount
No.
1 Gross salary Nil Nil Nil
(a) Salary as per provisions contained in section 17(1) of
the Income-tax Act, 1961 Nil Nil Nil
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 Nil Nil Nil
(c) Profits in lieu of salary under section 17(3)
Income- tax Act, 1961 Nil Nil Nil
2 Stock Option Nil Nil Nil
3 Sweat Equity Nil Nil Nil
4 Commission Nil Nil Nil
-as % of profit Nil Nil Nil
-others, specify Nil Nil Nil
5 Others, please specify Nil Nil Nil
Total (A) Nil Nil Nil
29
b. Remuneration to other directors:
Sl. Name of Directors Total Amount

Particulars of Remuneration
No.
1 Independent Directors Nil Nil Nil

Fee for attending Board/ committee meetings Nil Nil Nil
Commission Nil Nil Nil
Others, please specify Nil Nil Nil
Total (B) (1) Nil Nil Nil
2 Other Non-Executive Directors Nil Nil Nil
Fee for attending board / committee meetings Nil Nil Nil
Commission Nil Nil Nil
Others, please specify Nil Nil Nil
Total (B) (2) Nil Nil Nil
Total (B)= (B)(1)+(B)(2) Nil
c. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD
Sl. Company
Particulars of Remuneration *CEO Total
No. Secretary
& CFO
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of
the Income-tax Act, 1961 24 7 31
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 1 - 1
( c) Profits in lieu of salary under section 17(3) Income-tax
8 4 12
Act, 1961
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission - - -
-as % of profit - - -
-others, specify - - -
5 Others, please specify - - -
6 Retirement Benefit 7 2 9
7 Total 40 13 53
* Includes arrears for the period 01.01.2017 to 31.03.2017
30
VII.PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Details of
Section Appeal Appeal
Penalty / Authority
of the Brief made, made,
Type Punishment/ [RD / NCLT/
Companies Description Compounding if any (give if any (give
COURT]
Act Details) Details)
fees imposed
A. COMPANY
Penalty
Punishment None
Compounding
B. DIRECTORS
Penalty
Punishment None
Compounding
C. OTHER OFFICER IN DEFAULT
Penalty
Punishment None
Compounding
31
Information required to be disclosed in accordance with Section 134(3)(m) of the Companies

Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 regarding conservation
of energy, technology absorption and foreign exchange earnings and outgo.
A) CONSERVATION OF ENERGY
i) Energy conservation measures taken during the year 2017-18.
Installation of Energy Efficient Air Compressor
ii) The steps taken by the company for utilising alternate sources of energy
During the year the company has not taken any steps for utilising alternate sources of energy.
iii) The capital investment on energy conservation equipments.
A capital investment of ` 7.00 lakhs has been made for installation of Energy Efficient Air
Compressor.
B) TECHNOLOGY ABSORPTION
i) Efforts, in brief, made towards Technology absorption, adaptation and innovation
• The ToT Project on manufacture of XR-5 Tubes is in progress. The major ToT equipment
have been received, installed and commissioned in the Plant. Implementation of the XR-5
manufacturing processes have been carried out in the Plant, due to which the Performance
of I.I Tubes have improved.
• Installation of Clean Room, Class ISO 6, for the ToT has been completed as on date. An
additional Building, for large scale manufacture of Auto-gated Power Supply Units (PSUs),
alongwith conventional (Non Auto-gated) PSUs, has been constructed. Clean Room
installation activity for this new Building, would be completed during the Year 2019-20.
ii) Benefits derived as a result of the above efforts
• Commencement of implementation of indigenous manufacturing technology for delivery of
high performance I.I. Tubes, Type XR-5, to the Customers.
• Upgradation of Infrastructure for better productivity, process consistency, and process data
traceability, resulting in overall Customer satisfaction and extending the life of the existing
Assets
iii) Information regarding technology imported during the last three years
In order to meet the requirements of further enhanced performance Tubes by the Indian Army,
the Company has entered during May 2014, into incremental ToT Agreement with
M/s Photonis SAS, France and their Sister Company, M/s Imaging Sensors International,
France for the manufacture XR-5 I.I. Tubes. The XR-5 project is under implementation.
iv) Expenditure on R&D
The Company has incurred an expenditure of approx ` 14 Lakhs during the year 2017-18.
C) FOREIGN EXCHANGE EARNING AND OUTGO

No disclosure of the foreign exchange earning and outgo is furnished on account of the notification
received from the Government of India, Ministry of Company Affairs.
32

FORM NO. MR-3
Secretarial Audit Report
For the Financial Year Ended 31st March 2018
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
BEL Optronic Devices Limited,
EL 30, J Block, MIDC Bhosari, Pune 411026
I have conducted the secretarial audit of the compliance of applicable statutory provisions
and the adherence to good corporate practices by BEL Optronic Devices Limited
(CIN: U31909PN1990GOI058096) (hereinafter called “the Company”). Secretarial Audit was
conducted in a manner that provided me a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and
other records maintained by the Company and also the information provided by the Company, its
officers, agents and authorised representatives during the conduct of secretarial audit, I hereby report
that in my opinion, the Company has, during the audit period covering the financial year ended on
st
31 March 2018 complied with the statutory provisions listed hereunder and also that the Company has
proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject
to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records
maintained by the Company for the financial year period ended on 31st March 2018 according to the
provisions of:
(i) The Companies Act, 2013 (the Act) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder (during
the year under review not applicable to the Company);
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder (during the year
under review not applicable to the Company, as the shares of the company are not in
dematerialized form);
(iv) Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the
extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial
Borrowings (during the year under review not applicable to the Company as the Company does not
have any foreign direct investment, overseas direct investment and external commercial
borrowings);
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011 (during the year under review not applicable to the Company as the
Company is an unlisted company);
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
(during the year under review not applicable to the Company as the Company is an unlisted
company);
33
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009 (during the year under review not applicable to the Company as the
Company is an unlisted company and not proposing to get its securities listed);
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,
2014 (during the year under review not applicable to the Company as the Company is an
unlisted company);
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008 (during the year under review not applicable to the Company as the Company is an
unlisted company and not proposing to get debt securities listed);
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with Client (during the year under
review not applicable to the Company as the Company is not availing services of Registrars to
an Issue and Share Transfer Agents);
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009
(during the year under review not applicable to the Company as the Company has not done
delisting of shares); and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (during
the year under review not applicable to the Company as the Company is an unlisted company);
(vi) As informed to me, no other law is applicable specifically to the Company.
I have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India.
I have not examined compliance with the applicable clauses of the following since it is not
applicable to the Company during the period under review:
(i) The Listing Agreements entered into by the Company with Stock Exchange(s);
During the period under review the Company has complied with the provisions of the Acts, Rules,
Regulations, Guidelines, Standards etc. mentioned above, subject to the following observations:
The Companies Act, 2013:

(a) As per provisions of Section 149(4), the Company has not appointed Independent Directors for a
st th
period from April 1 , 2017 till July 5 , 2017.
(b) As per Section 135(1) the Corporate Social Responsibility Committees is not properly constituted
st th
for a period from April 1 , 2017 till July 5 , 2017.
( c) As per Section 177(2) the Audit Committees is not properly constituted for a period from
st th
April 1 , 2017 till July 5 , 2017.
(d) As per Section 178(1) the Nomination and Remuneration Committee is not properly constituted for
st th
a period from April 1 , 2017 till July 5 , 2017.
34
I further report that

Subject to the observations given above, the Board of Directors of the Company is duly constituted. The
Changes in the composition of the Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation
at the meeting.
All decisions of the Board were carried through unanimously. As per the records provided by the
Company, none of the member of the Board dissented on any resolution passed at the meeting.
I further report that there are adequate systems and processes in the company commensurate with
the size and operations of the Company to monitor and ensure compliance with applicable laws, rules,
regulations and guidelines.
I further report that during the audit period the Company has:
(a) Allotted 708732 equity shares of Rs. 100/- each on Rights basis, whereby paid up capital has
been increased from Rs. 59,22,63,500/- to Rs. 66,31,36,700/-.
-sd-
Abhijit Dakhawe
Company Secretary
FCS # 6126
CP No # 4474
Place: Pune
th
Date : 17 July 2018
35
Form No. AOC-II
(Pursuant to clause (h) of sub-section (3) of section 134 of the Companies Act, 2013 and Rule 8(2)
of the Companies (Accounts) Rules, 2014)
Form for disclosure of particulars of contracts/agreements entered into by the Company with related
parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain
arms length transactions under third proviso thereto:
1. Details of contracts or arrangements or transactions not at arm’s length basis

(a) Name(s) of the related party and nature of relationship: Not Applicable
(b) Nature of contracts/arrangements/transactions: Not Applicable
(c) Duration of the contracts/arrangements/transactions: Not Applicable
(d) Salient terms of the contracts or arrangements or transactions including the value, if any: Not
Applicable
(e) Justification for entering into such contracts or arrangements or transactions: Not Applicable
(f ) Date(s) of approval by the Board: Not Applicable
(g) Amount paid as advances, if any: Not Applicable
(h) Date on which the special resolution was passed in general meeting as required under first
proviso to section 188: Not Applicable
2. Details of material contracts or arrangements or transactions at arm’s length basis

(a) Name(s) of the related party and nature of relationship: Not Applicable
(b) Nature of contracts/arrangements/transactions: Not Applicable
(c) Duration of the contracts/arrangements/transactions: Not Applicable
(d) Salient terms of the contracts or arrangements or transactions including the value, if any: Not
Applicable
(e) Date(s) of approval by the Board: Not Applicable
(f ) Amount paid as advances, if any: None
For and on behalf of the Board

-sd-
M V Gowtama
Chairman
Place : Bengaluru
th
Date : 13 August 2018
36
Ind AS Financial Statements – 31 March 2018

Ind AS Financial statements
Ÿ Balance Sheet
Ÿ Statement of Profit and Loss
Ÿ Statement of Cash Flows
Ÿ Statement of Changes in Equity
Ÿ Notes to the Financial Statements
37
BALANCE SHEET AS AT MARCH 31, 2018

` In Lakhs
Sr. Note As at As at
Particulars 31st March, 2018 31st March, 2017
No. No.
ASSETS
(1) Non-Current assets
(a) Property, Plant and Equipment 1 8,028 8,575
(b) Capital work-in-progress 2 4,936 5,030
(c) Intangible assets 3 14,676 15,926
(d) Intangible assets under development 4 5,132 3,342
(e) Financial assets
(i) Trade Receivables 5 - -
(ii) Loans 6 33 33
(iii) Other Financial Assets 7 23 56
(f) Inventories 8 - -
(g) Other Non-Current Assets 9 1,441 1,875
Sub Total Non-Current Assets ((a) to (g)) 34,269 34,837
(2) Current Assets
(a) Inventories 10 3,196 2,951
(b) Financial Assets
(i) Trade Receivables 11 1,387 6,062
(ii) Cash and Cash equivalents 12 6,100 1,346
(iii) Bank Balances (other than (ii)above) 13 268 219
(iv) Other Financial Assets 14 23 17
(c) Current Tax Assets (Net) 15 80 78
(d) Other Current Assets 16 586 550
Sub Total Current Assets ((a) to (d)) 11,640 11,223
TOTAL ASSETS 45,909 46,060
EQUITY AND LIABILITIES

EQUITY
(a) Equity Share Capital 17 6,631 5,923
(b) Other Equity 12,189 10,136
Sub Total Equity ((a) + (b)) 18,820 16,059
LIABILITIES
(1) Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 18 2,114 2,252
(b) Government Grants-deferred 19 15,301 16,410
(c) Provisions 20 144 131
(d) Deferred Tax Liabilities (net) 21 99 333
Sub Total Non-Current Liabilities ((a) to (d)) 17,658 19,126
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings 22 2,595 3,455
(ii) Trade Payables 23 1,742 1,477
(iii) Other Financial Liabilities 24 2,964 4,805
(b) Other Current Liabilities 25 863 185
(c) Provisions 26 1,076 685
(d) Current Tax Liability (Net) 27 191 268
Sub Total Current Liabilities ((a) to (d)) 9,431 10,875
Sub Total Liabilities (1+2) 27,089 30,001
TOTAL EQUITY AND LIABILITIES 45,909 46,060
THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
As per our report attached

-sd- -sd-
MSDN & ASSOCIATES M. V. GOWTAMA ANANDI RAMALINGAM
Chartered Accountants Chairman Director
Firm Reg. No. 112479W
-sd- -sd- -sd-
DEEPAK SUGANDHI KOSHY ALEXANDER R. N. BAGDALKAR
Partner Director Director
MEM. NO. 104950
-sd- -sd-
Place: Pune DCN SRINIVASA RAO PRIYA. S. IYER
Date : 26th July 2018 Chief Executive Officer Company Secretary & CFO
Place : Bangalore
Date : 26th July 2018
38
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2018
` In Lakhs
Sr. Note For the year ended For the year ended
Particulars
No. No. 31st March, 2018 31st March, 2017
I Revenue from operations 28 12,164 12,388

II Other income 29 291 734
III Transfer of grant
(i) TPDUP 2 9
(ii) ToT XD-4 1,455 1,389
Total (i)+(ii) 1,457 1,398
IV Total Income (I+II+III) 13,912 14,520
V Expenses
(a) Cost of materials consumed 30 6,346 6,291
(b) Changes in inventories of finished goods, 31 (46) (350)
stock-in -trade and work-in-progress
(c) Employee benefit expense 32 1,265 926
(d) Excise Duty 608 2,380
(e) Finance costs 33 482 741
(f) Depreciation and amortisation expense 34 2,054 1,997
(g) Technical Assistance Fee And Travel Expenses 35 397 603
(h) Other expenses 36 1,538 1,073
Total expenses (V) ((a) to (h)) 12,644 13,661
VI Profit before exceptional items and tax (IV-V) 1,268 859
VII Exceptional items - -
VIII Profit before tax (VI-VII) 1,268 859
IX Tax expense:
(i) Current tax (MAT for the Year) 345 257
(ii) Deferred tax (Including MAT Credit Entitlement) (232) 118
Total Tax Expenses (i+ii) 113 375
X Profit for the year (VIII-IX) 1,155 484
XI Other Comprehensive Income
(A) Items that will not be reclassified to profit or loss
(i) Remeasurements of the defined benefit plans 17 (65)
(ii) Income tax effect on the above (2) -
(B) Items that will be reclassified to profit or loss - -
Other comprehensive income for the year, net of taxes
(A + B) 15 (65)
XII Total Comprehensive Income for the period
(X + XI) (Comprising Profit (Loss) and
Other Comprehensive Income for the period) 1,170 419
XIII Earning per equity share
(1) Basic 19.20 11.57
37(1)
(2) Diluted 19.20 11.57
THE ACCOMPANYING NOTES FORM AN INTEGRAL PART OF THE FINANCIAL STATEMENTS

-sd- -sd-
-sd- -sd- -sd-
MEM. NO. 104950
-sd- -sd-
Place : Bangalore
39
STATEMENT OF CASH FLOW FOR THE PERIOD 01.04.2017 TO 31.03.2018

` In Lakhs
For the year ended For the year ended
Particulars
31st March 2018 31st March 2017
Cash Flow From Operating Activities
Profit before tax 1,268 859
Adjustments for :
Depreciation & amortisation expense 2,054 1,997
Interest Income (111) (76)
Finance costs 482 740
Amortisation of government grants-deferred (1,457) (1,398)
Remeasurements of the defined benefit plans 17 (65)
Change In Operating Assets And Liabilities
(Increase) /decrease in trade receivables 4,675 (4,305)
(Increase) /decrease in inventories (244) (346)
Increase /(decrease) in trade payables 265 636
Increase /(decrease) in other financial liabilities (1,853) 4,618
(Increase)/ decrease in other financial assets 27 53
(Increase) /decrease in other non current assets 434 2,503
(Increase) /decrease in other current assets (36) 197
Increase /(decrease) in provisions 403 (54)
Increase/(decrease) in other current liabilites 678 (49)
Cash flow from/ (used) in operations 6,602 5,310
Income taxes paid (428) (58)
Cash Flow Before Extraordinary Items - -
Net Cash flow from /(used) in operating activities: (A) 6,174 5,252
Cash Flow From Investing Activities:

Payment for property, plant and equipment (257) (1,013)
Increase in CWIP and Intangibles (1,697) (8,363)
Investment from Term Deposits (48) (69)
Interest received 111 76
Net cash inflow from/ (used) in from investing activities (B) (1,891) (9,369)
Cash Flow From Financing Activities
Grant Received 348 151
Increase/(Decrease) In Term Loan Borrowings 509 1,042
Repayment from borrowings- Working Capital (1,473) (3,051)
Finance Costs (482) (740)
Dividend Paid ( including tax on dividend) (174) -
Proceeds from issue of shares 1,743 4,920
Net cash inflow from/(used) in financing activities (C) 471 2,322

Net Increase/(Decrease) In Cash And Cash Equivalents
((A)+(B)+(C)) 4,754 (1,795)
Cash and Cash Equivalents at the beginning of the year 1,346 3,141
Cash and cash equivalents at the end of the year 6,100 1,346
Reconciliation of cash and cash equivalents as per Cash flow
statement
Reconciliation of cash and cash equivalents as per above
comprise of following:
Cash and cash equivalents (Note 12) 6,100 1,346

Balance as per statement of cash flows 6,100 1,346
-sd- -sd-
-sd- -sd- -sd-
MEM. NO. 104950
-sd- -sd-
Place : Bangalore
40
RECONCILIATION BETWEEN THE OPENING AND CLOSING BALANCES IN BALANCE SHEET FOR
FINANCIAL LIABILITIES ARISING FROM FINANCING ACTIVITIES
` In Lakhs
Non- Cash Changes during the year
Cash Flows
Balance as on Balance as on
Particulars during Foreign Exchange Fair Value
01.04.2017 31.03.2018
the Year Movement Changes
*Term Loan 1,001 (20)

509 - 1,490
Borrowing ( BEL)
**Working Capital Loan 3,348 (14)

(1,485) - 1,849
Borrowing (BEL)
Short Term Borrowing 1,358 -

(68) 80 1,370
(Buyers Credit)
*The Fair Valuation of ` 17/- is included in the above amount of cash flow of ` 509/-.
**The Fair Valuation of (` 24)/- is included in the above amount of cash flow of (` 1,485)/-.
41
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31st MARCH, 2018
A. EQUITY SHARE CAPITAL
` In Lakhs
Changes in equity capital

Balance as on 01.04.2017 Note No during the year Balance as on 31.03.2018
No. of Shares Amount No. of Shares Amount No. of Shares Amount

17
59,22,635 5,923 7,08,732 709 66,31,367 6,631
B. OTHER EQUITY
` In Lakhs
Reserves and Surplus
Items of Other Total
Particulars Note Securities Other
Retained Comprehensive
No Premium Reserves Equity
Earnings Income
Reserve
Balance as on 01st April 2017 5,317 4,731 (68) 156 10,136
Issue of Equity Shares during the year 1,035 - - - 1,035
Profit for the year - 1,155 - - 1,155
Other comprehensive income for the
year (net of tax) - - 15 - 15
Capital Contribution on account of
below market rate borrowings - - - 34 34
st
Balance as at 31 March 2018 6,352 5,886 (53) 190 12,375
Expenditure towards Corporate Social
Responsibility (CSR) 37(2) - (13) - - (13)
Dividends 17 - (144) - - (144)
Dividend Distribution Tax 17 - (29) - - (29)
st
Balance as at 31 March 2018 6,352 5,700 (53) 190 12,189
-sd- -sd-
-sd- -sd- -sd-

MEM. NO. 104950
Place: Pune -sd- -sd-
Date : 26th July 2018 DCN SRINIVASA RAO PRIYA. S. IYER
Chief Executive Officer Company Secretary & CFO
Place : Bangalore
42
SIGNIFICANT ACCOUNTING POLICIES
CORPORATE INFORMATION
The accompanying financial statements comprise the financial statements of
BEL Optronic Devices Ltd.,Pune (BELOP) (the Company). The Company is a public company
domiciled in India and is incorporated under the provisions of the Companies Act applicable in India.
The registered office of the Company is located at Pune, Maharashtra. The Company is a wholly owned
subsidiary of Bharat Electronics Limited (BEL). The Company is engaged in manufacture of Image
Intensifier Tubes and associated high voltage Power Supply Units for use in defence system.
1. Basis of Preparation and Statement of Compliance

The financial statements are prepared and presented in accordance with Generally Accepted
Accounting Principles in India (GAAP), on the accrual basis of accounting. GAAP comprises the
mandatory Indian Accounting Standards (Ind-AS) [as notified under Section 133 of the
Companies Act, 2013 read Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015], to the extent applicable, the provisions of the Companies Act, 2013 and these have been
consistently applied.
2. Use of Estimates
The preparation of the financial statements in conformity with GAAP, requires that
the management makes estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent liability as at the date of financial statements and reported
amounts of revenue and expenses during the reporting period. Although such estimates are made
on a reasonable and prudent basis taking into account all available information, actual results could
differ from these estimates and such differences are recognised in the period in which the results
are ascertained.
3. Basis of Measurement
The financial statements have been prepared on a historical cost basis, except for the following
assets and liabilities which have been measured at fair value:
1. Derivative financial instruments, if any
2. Financial assets and liabilities those are qualified to be measured at fair value.
3. The defined benefit asset/liability is recognised as the present value of defined benefit
obligation less fair value of plan assets.
4. Functional and Presentation Currency

The financial statements are presented in Indian Rupee (INR) which is the functional and the
presentation currency of the Company.
5. Revenue Recognition
(i) SALE OF GOODS
Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when
the significant risks and rewards of ownership have been transferred to the customer as per the
terms of sale agreement, neither continuing management involvement nor effective control
over the goods is retained, recovery of the consideration is probable, and the amount of cost
incurred and the revenue can be measured reliably. The timing of the transfer of risks and
rewards is evaluated based on inco-terms of the sales agreement.
(ii) EX- WORKS CONTRACT

In case of Ex-works contract, revenue is recognised when the specified goods are
unconditionally appropriated to the contract after prior inspection and acceptance, if required.
43
(iii) FOR CONTRACTS

In the case of FOR contracts, when the goods are handed over to the carrier for transmission
to the buyer after prior inspection and acceptance, if stipulated, and in the case of FOR
destination contracts, if there is a reasonable expectation of the goods reaching destination
within the accounting period. Revenue is recognised even if goods are retained with the
company at the request of the customer.
(iv) REVENUE FROM SERVICES

Revenue and costs relating to Service contracts are recognised as the related services are
rendered. For fixed-price contracts, revenue is recognised in proportion to the stage of
completion of the transaction at the reporting date. The stage of completion is assessed by
reference to work performed. No revenue is recognised if there are significant uncertainties
regarding recovery of the consideration due or if the costs incurred or to be incurred cannot
be measured reliably.
(v) Sales exclude Sales Tax / Value Added Tax (VAT) and include Excise Duty till 30.06.2017.
From 01.07.2017 onwards, Sales exclude Goods and Service Tax (GST).
(vi) PRICE ESCALATIONS AND EXCHANGE RATE VARIATION CLAIMS

In case of contracts where additional consideration is to be determined and approved by the
customers, such additional revenue is recognised on receipt of confirmation from the
customer(s).
(vii) INTEREST INCOME

Interest income is recognized using the effective interest rate method.
(viii) OTHER INCOME

Other income not specifically stated above is recognised on accrual basis.
6. INVENTORIES
(i) Raw materials, stores & spares and goods in transit have been valued at lower of cost and net
realisable value and Cost of material is determined on weighted average basis.
(ii) Work-in-Progress has been valued at the lower of cost and net realizable value. Cost includes
materials, direct labour and appropriate overheads.
(iii) Finished Goods have been valued at the lower of cost and net realisable value.
7. DEPRECIATION /AMORTISATION
DEPRECIATION
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets.The
Company, based on technical assessments made by technical experts and Management estimates
the useful life of the assets in the manner prescribed in Schedule II to the Companies Act, 2013. The
Management believes that these estimated useful lives are realistic and reflect fair approximation of
the period over which the assets are likely to be used.
Where cost of a part of the asset is significant to total cost of the asset and estimated useful life of
that part is different from the estimated useful life of the remaining asset, estimated useful life of that
significant part is determined separately and the significant part is depreciated on straight-line
method over its estimated useful life. The residual values, useful lives and methods of depreciation
of property, plant and equipment are reviewed at each financial year end and adjusted
prospectively, if appropriate.
Depreciation on certain items of Plant & Machinery is charged over the estimated useful life which
are different from the useful life prescribed in Schedule II to the Companies Act, 2013.
44
AMORTISATION
Amortisation is calculated to write off the cost of intangible assets using the straight line method
over their estimated useful lives and is generally recognised in Statement of Profit & Loss.
Amortisation methods, useful lives are reviewed at each reporting date and adjusted if appropriate.
8. DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT

An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the
Statement of Profit & Loss when the asset is derecognised.
9. EMPLOYEE BENEFITS
(i) All employee benefits payable wholly within twelve months of rendering the related services are
classified as short term employee benefits and they mainly include
(a) Wages & Salaries; (b) Short-term compensated absences; (c) Incentives and bonuses
which are valued on undiscounted basis and recognised during the period in which the related
services are rendered.
(ii) Incremental liability for payment of long term compensated absences such as Annual Leave is
determined as the difference between present value of the obligation determined annually on
actuarial basis using Projected Unit Credit method and the carrying value of the provision
contained in the balance sheet and provided for.
(iii) Defined contribution to Employee Provident Fund and Pension Scheme are made on a monthly
accrual basis at the applicable rates. Defined contribution to Superannuation Scheme is made
on yearly basis at the applicable rates.
(iv) Gratuity: Incremental liability for payment of gratuity to employees is determined as the
difference between present value of the obligation determined annually on actuarial basis using
Projected Unit Credit Method and the fair value of plan assets funded in an approved trust set
up for the purpose for which lumpsum contribution are made.
(v) Actuarial gains and losses and the return on plan assets (excluding interest) and the effect of
the asset ceiling (if any, excluding interest), are recognised immediately in Other
Comprehensive Income (OCI). Net interest expense (income) on the net defined liability
(assets) is computed by applying the discount rate, used to measure the net defined liability
(asset) at the start of the financial year after taking into account any changes as a result of
contribution and benefit payments during the year. Net interest expense and other expenses
related to defined benefit plans are recognised in Statement of Profit and Loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in
benefit that relates to past service or the gain or loss on curtailment is recognised
immediately in Statement of Profit & Loss.
10. INCOME TAXES

Income tax comprises of current and deferred tax.
(i) CURRENT INCOME TAX
Current tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at the reporting date. Current tax relating to
items recognised directly in equity is recognised in equity and not in the Statement of Profit &
Loss.
Deferred tax relating to items recognised outside Statement of Profit & Loss is recognised
outside Statement of Profit & Loss.
45
(ii) DEFERRED TAX

Deferred tax is provided using the Balance sheet method on temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of
unused tax credits and any unused tax losses to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences can be utilised. The
carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred tax asset to be utilised.
11. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are initially recorded by the Company at their respective
currency exchange rates at the date the transaction first qualifies for recognition. Monetary assets
and liabilities denominated in foreign currencies are translated at the functional currency exchange
rate at the reporting date. Differences arising on settlement or translation of monetary items are
recognised in Statement of Profit & Loss. Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using the functional currency exchange rate at
the dates of the initial transactions.
12. FORWARD CONTRACTS

Derivative financial instruments such as forward currency contracts, use for hedging foreign
currency risk are initially recognised at fair value on the date on which a derivative contract is
entered into and are subsequently re-measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities when the fair value is negative.
13. BORROWING COSTS

Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised
as part of the cost of the asset. General borrowing costs are capitalised to qualifying assets by
applying a capitalisation rate to the expenditure on that asset. The capitalisation rate is the weighted
average of the borrowing costs applicable to general borrowings outstanding, other than specific
borrowing. All other borrowing costs are expensed in the period in which they occur. Borrowing
costs consist of interest and other costs that an entity incurs in connection with the borrowing of
funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment
to the borrowing costs.
14. PROPERTY, PLANT AND EQUIPMENT, CAPITAL WORK IN-PROGRESS
PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is initially measured at cost and subsequently at cost less
accumulated depreciation and impairment losses, if any.
Cost for this purpose includes all attributable costs for bringing the asset to its location and
condition. The present value of the expected cost for the decommissioning of an asset after its
use is included in the cost of the respective asset, if the recognition criteria for a provision are
met.
CAPITAL WORK-IN-PROGRESS
The cost of fixed assets not ready for their intended use as at each balance sheet date is disclosed
as capital work-in-progress
Capital work-in-progress comprises supply-cum-erection contracts, the value of capital supplies
received at site and accepted, capital goods in transit and under inspection and the cost of
Property, Plant and equipment that are not yet ready for their intended use as at the balance
sheet date.
46
15. INTANGIBLE ASSETS , INTANGIBLE ASSETS UNDER DEVELOPMENT

The cost of license fee, technical know how etc acquired for transfer of technology resulting in
significant future economic benefits is recognised as an Intangible Asset in the books of accounts
when the same is ready for use. Intangible Assets that are not yet ready for their intended use as at
the Balance Sheet date are classified as “Intangible Assets under Development”.
Cost of Developmental work which is completed, wherever eligible, is recognised as an Intangible
Asset.
Cost of Developmental work under progress, wherever eligible, is classified as “Intangible Assets
under Development”.
16. EXPENDITURE ON TECHNICAL KNOW HOW

Expenditure incurred on technical know-how is charged off to Statement of Profit and Loss on
incurrence unless it qualifies for recognition as an Intangible Asset /Part of Tangible Assets either
separately on its own or in combination with other assets / expenses.
17. RESEARCH & DEVELOPMENT EXPENDITURE

(i) Expenditure on Research activity is recognized as an expense in the period when it is incurred.
(ii) Development expenditure (other than on specific development- cum sales contracts and
Developmental, projects initiated at customer’s request),is charged off as expenditure when
incurred. Developmental expenditure on development – cum – sale contracts and on
Developmental projects initiated at customer’s request are treated at par with other sales
contracts.
Where such developmental projects do not fructify into a customer order, the total expenditure
booked in respect of such projects is charged off in the year the project is closed.
(iii) Expenditure incurred towards other developmental activity (including joint developmental
activity in collaboration with external agencies ) where the research results or other knowledge
is applied for developing new or improved products or processes, are recognised as an
Intangible Asset if the recognition criteria specified in IND-AS 38 are met and when the product
or process developed is expected to be technically and commercially usable, the company has
sufficient resources to complete development and subsequently use or sell the intangible
asset, and the product or process is likely to generate future economic benefits.
(iv) R&D expenditure on Fixed Assets is capitalised.
18. GOVERNMENT GRANTS

Grants from Government are measured at fair value and initially recognized as Deferred Income.
The amount lying in Deferred Income on account of acquisition of Fixed Assets is transferred to the
credit of Statement of Profit & Loss in proportion to the depreciation charged on the respective
assets to the extent attributable to Government Grants utilised for the acquisition.
The amount lying in Deferred Income on account of Revenue Expenses is transferred to the credit
of Statement of Profit & Loss to the extent of expenditure incurred in the ratio of the funding to the
total sanctioned cost, limited to the Government grant received.
19. FINANCIAL ASSETS

INITIAL RECOGNITION AND MEASUREMENT
All financial assets are recognized initially at fair value. In the case of financial assets not recorded
at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset are included in the cost of the asset.
47
SUBSEQUENT MEASUREMENT
For purposes of subsequent measurement, financial assets are classified in four categories:
• Debt instruments at amortized cost,
• Debt instruments at fair value through other comprehensive income (FVTOCI),
• Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL),
• Equity instruments measured at fair value through other comprehensive income (FVTOCI).
DERECOGNITION
A financial asset or part of a financial asset is derecognised. The rights to receive cash flows from
the asset have expired.
TRADE RECEIVABLES AND OTHER RECEIVABLES

Receivables are initially recognised at fair value, which in most cases approximates the nominal
value. If there is any subsequent indication that those assets may be impaired, they are reviewed
for impairment.
20. CASH AND CASH EQUIVALENTS

Cash comprises of cash on hand and demand deposits. Cash equivalents are short-term highly
liquid investments with original maturities of three months or less that are readily convertible to
known amounts of cash, which are subject to an insignificant risk of change in value.Bank
overdrafts, if any, are classified as borrowings under current liabilities in the Balance Sheet.
21. IMPAIRMENT OF FINANCIAL ASSETS

In accordance with Ind-AS 109, the Company applies the expected credit loss (ECL) model for
measurement and recognition of impairment loss on financial assets with credit risk exposure.
a. Time barred dues from the government / government departments / government companies
are generally not considered as increase in credit risk of such financial asset.
b. Where dues are disputed in legal proceedings, provision is made if any decision is given
against the Company even if the same is taken up on appeal to higher authorities / courts.
c. Dues outstanding for significant period of time are reviewed and provision is made on a case to
case basis.
Impairment loss allowance (or reversal) is recognised as expense/(income) in the Statement of
Profit or Loss.
22. FINANCIAL LIABILITIES

(i) INITIAL RECOGNITION AND MEASUREMENT
Financial liabilities are classified, at initial recognition, at fair value through profit or loss as
loans, borrowings, payables, or derivatives, as appropriate.
Loans, borrowings and payables, are stated net of transaction costs that are directly
attributable
(ii) SUBSEQUENT MEASUREMENT

The measurement of financial liabilities depends on their classification, as described below
Financial liabilities at fair value through profit or loss.
Financial liabilities at fair value through profit or loss include financial liabilities designated upon
initial recognition as at fair value through profit or loss. This category also includes derivative
financial instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined in Ind-AS 109. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging
instruments. Gains or losses on liabilities held for trading are recognised in the Statement of
Profit & Loss.
48
(iii) LOANS AND BORROWINGS

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the Effective Interest Rate method. Gains and losses are recognised in
profit or loss when the liabilities are derecognized as well as through the EIR amortisation
process. A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires.
(iv) TRADE AND OTHER PAYABLES

Liabilities are recognised for amounts to be paid in future for goods or services received,
whether billed by the supplier or not.
23. RECLASSIFICATION OF FINANCIAL INSTRUMENTS
The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities. For financial assets which are debt instruments, a reclassification is made only if
there is a change in the business model for managing those assets. If the Company reclassifies
financial assets, it applies the reclassification prospectively.
24. OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are offset and the net amount is reported in the Balance
Sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
25. LEASES
A lease is classified at the inception date as a finance lease or an operating lease.
Company as a Lessee
Finance leases are capitalised at lower of fair value and the present value of the minimum lease
payments on commencement of the lease. Finance charges are recognised in finance costs in the
statement of Profit & Loss. A leased asset is depreciated over the estimated useful life of the asset
or lease term whichever is lower.
26. CASH DIVIDEND AND NON-CASH DISTRIBUTION TO EQUITY SHAREHOLDERS

The Company recognises a liability to make cash or non-cash distributions to equity holders when
the distribution is authorised and the distribution is no longer at the discretion of the Company.
27. PROVISION FOR WARRANTIES

Provision for Expenditure on account of performance guarantee and replacement / repair of goods
sold is made on the basis of trend based estimates.
28. PROVISIONS AND CONTINGENT LIABILITIES

(i) Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. When the Company expects some or all of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the reimbursement is virtually certain. The
expense relating to a provision is presented in the Statement of Profit & Loss net of any
reimbursement. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost. Contingent liabilities and contingent assets are not recognised
in the financial statements but are disclosed in the notes.
49
(ii) A provision for onerous contracts other than construction contracts is recognised when the
expected benefits to be derived by the Company from a contract are lower than the
unavoidable cost of meeting its obligations under the contract. The provision is measured at
the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the
Company recognises any impairment loss on the assets associated with that contract.
29. CASH FLOW STATEMENT
Cash flow statement has been prepared in accordance with the indirect method prescribed in
Ind AS-7 on Statement of Cash Flows.
30. EVENTS AFTER THE REPORTING PERIOD
Adjusting events are events that provide further evidence of conditions that existed at the end of
the reporting period. The financial statements are adjusted for such events before authorisation
for issue. Non-adjusting events are events that are indicative of conditions that arose after the
end of the reporting period. Non-adjusting events after the reporting date are not accounted, but
disclosed.
31. EARNINGS PER SHARE

The Company presents basic and diluted earnings per share data for its ordinary shares. Basic
earnings per share is calculated by dividing the profit or loss attributable to ordinary equity
holders of the Company by the weighted average number of ordinary shares outstanding during
the year, adjusted for own shares held. Diluted earnings per share is determined by adjusting
the profit or loss attributable to ordinary equity holders and the weighted average number of
ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential
ordinary shares.
32. IMPAIRMENT OF ASSETS
The assessment for the impairment of assets is done with reference to the Company [Cash
Generating Unit (CGU)] at each Balance Sheet date if events or changes in circumstances,
based on internal and external factors, indicate that the carrying value may not be recoverable
in full. The loss on account of impairment, which is the difference between the carrying amount
and recoverable amount, is accounted accordingly. Recoverable amount of a CGU is its Net
Selling Price or Value in use whichever is higher. The value in use is arrived at on the basis of
estimated future cash flows discounted at company’s pre-tax borrowing rate.
33. ERRORS AND ESTIMATES
The Company revises its accounting policies if the change is required due to a change in Ind-
AS or if the change will provide more relevant and reliable information to the users of the
financial statements. Changes in accounting policies are applied retrospectively.
A change in an accounting estimate that results in changes in the carrying amounts of
recognised assets or liabilities or to Statement of Profit & Loss is applied prospectively in the
period(s) of change.
Discovery of material errors results in revisions retrospectively by restating the comparative
amounts of assets, liabilities and equity of the earliest prior period in which the error is
discovered. The opening balances of the earliest period presented are also restated.
-sd- -sd-
-sd- -sd- -sd-

MEM. NO. 104950
Place: Pune
Date : 26th July 2018 -sd- -sd-
DCN SRINIVASA RAO PRIYA. S. IYER
Chief Executive Officer Company Secretary & CFO
Place : Bangalore
50
NOTE 1: PROPERTY, PLANT AND EQUIPMENT YEAR ENDED 31ST MARCH 2018
` In Lakhs
Gross Carrying Amount Accumulated Depreciation Net Carrying Value
As at Deduction / As at As at Deduction / As at As at As at
Particulars Additions Charge for
1st April, Re-classification 31st March, 1st April, Re-classification 31st March, 31st March, 1st April,
/Adjustments the year
2017 & Adjustments 2018 2017 & Adjustments 2018 2018 2017
TANGIBLE ASSETS
- -
Annual Report 2017 - 18
Leasehold Land 18 - 18 - - 1 17 17
Buildings 380 94 - 474 54 29 - 83 391 326
Plant & Machinery 9,501 153 - 9,654 1,367 753 7 2,127 7,527 8,134
Office Equipment 15 3 - 18 1 3 1 5 13 14
Electrical installation 65 1 - 66 19 8 - 27 39 46
Furniture & Fixtures 30 13 - 43 3 5 6 14 29 26
Computer Systems 17 7 - 24 5 6 - 12 12 12
Total 10,026 271 - 10,297 1,449 804 14 2,269 8,028 8,575
Previous Year 9,029 1,012 16 10,026 719 747 16 1,450 8,576 8,310
1. Plant and Machinery (Gross Carrying Value ) includes Assets to the tune of ` 33/- (Previous Year ` 33/-) which is funded out of grant under TPDUP Project.
2. Plant and Machinery (Gross Carrying Value) includes Assets to the tune of ` 5,611/- (Previous Year ` 5,611/-) which is funded out of grant received for
51
implementation of Transfer of Technology for XD- 4 I.I.Tubes.
3. Depreciation on Plant and Machinery of ` 753/- includes depreciation on ToT equipments (XD-4) of ` 540/-.
4. Depreciation is provided on Straight Line Method (SLM) in accordance with Schedule II of Companies Act 2013.
5. The useful life of assets for calculation of depreciation other than those under Schedule II of the Companies Act, 2013 are as under:
I) Plant and Machinery (Continuous Process plant) 15 Years -
As per the terms of the Technology License Agreement, the Linear Transfer Lines ( continuous process plant) are supported by the ToT provider for a period
of 15 Years.
It is ascertained on the basis of Technical Assessment by the Management that the Linear Transfer Lines would be used for a period of 15 Years.
6. Additional Depreciation of 50 % and 100% has been charged on Plant & Machinery items in respect of double shift working and triple shift working respectively.
7. The Company has acquired 13680 square meter of land on lease from MIDC for 95 years at a cost of ` 21/- on 25.11.1991 with renewable option of further 95
years on new terms and conditions.
Cost of leasehold land capitalised is ` 23/- & Gross Carrying Amount is ` 18/-
BELOP
NOTE 2 - CAPITAL WORK IN PROGRESS ` In Lakhs
As at As at
Civil Construction - 48
Plant and machinery 4,936 4,936 4,982 5,030
TOTAL 4,936 5,030
NOTE 3 - INTANGIBLE ASSETS FOR THE YEAR ENDED 31ST MARCH 2018.
Gross Carrying Amount Accumulated Amortisation Net Carrying Value

As at Additions Deduction / As at As at Deduction / As at As at As at
Particulars Charge for
1st April, During Re-classification 31st March, 1st April, Re-classification 31st March, 31st March, 31st March,
the year
2017 the year & Adjustments 2018 2017 & Adjustments 2018 2018 2017
License Fee 18,424 - - 18,424 2,500 1,250 - 3,750 14,674 15,924

Computer
52
Operating
System 2 - - 2 - - - - 2 2
Total 18,426 - - 18,426 2,500 1,250 - 3,750 14,675 15,926
Previous Year 18,426 - - 18,426 1,250 1,250 - 2,500 15,926 17,176
1. Intangible Assets (Gross Carrying amount) includes ` 13,689/- (Previous Year ` 13,689/-) which is funded out of grant received for implementation of Transfer
of Technology (ToT) XD-4.
2. Amortisation is calculated on straight -line basis over the estimated useful lives of asset.
3. Amortisation of Computer Operating System is ` 18,863/- wrt current year which is rounded off.
BELOP
NOTE 4 - INTANGIBLE ASSETS UNDER DEVELOPMENT

` In Lakhs
Particulars As at 31st March 2018 As at 31st March 2017
TOT (XR-5)
Opening balance 3,342 -
Add: Addition during the year 1,790 3,342
Less: Amount capitalised during the year - -
Total 5,132 3,342
The additons to intangible assets under development are on account of the license fees paid under
the XR-5 Agreement.
NOTE 5 - TRADE RECEIVABLES- NON CURRENT ` In Lakhs
Trade Receivable, Unsecured Considered

Doubtful
1. From Related Party 140 140
Less: Provision for doubtful debts 140 140
Sub Total (1) - -
2. From Others 217 217
Less: Provision for doubtful debts 217 217
Sub Total (2) - -
Total (1 + 2) - -
The movement in the allowance for doubtful receivables is presented as follows:

` In Lakhs
Balance at the beginning of the year 357 334

Impairment losses during the year - 23
Written off during the year - -
Credited to Profit or Loss - -
Balance at the end of the year 357 357
NOTE 6 - LOANS - NON CURRENT

` In Lakhs
Security Deposits Unsecured Considered Good

Deposits with MSEB 31 31
Deposits for water supply 1 1
Other deposits 1 1
Total 33 33
Please refer Note No. 38 for fair value measurements
53
NOTE 7 - OTHER FINANCIAL ASSETS- NON CURRENT

` In Lakhs
Term deposits with more than 12 months maturity 23 55

Interest Accured on term Deposits - 1
Total 23 56

1.The above Cash and Equivalents do not have any repatriation restrictions
NOTE 8 - INVENTORIES- NON CURRENT
` In Lakhs
Inventories
Raw materials 20 157
Less: Provision for obsolescence 20 157
Total - -
NOTE 9 - OTHER NON CURRENT ASSETS

` In Lakhs
Capital Advances 1,178 1,567

Prepaid Expenses 6 -
Advance service tax paid on (XR-5) 79 106
Advance TDS (XR-5) 121 161
Advances to suppliers
Unsecured considered doubtful 20 20
Less: Provision for doubtful advances 20 - 20 -
Deposits
Deposit with Excise Authorities - -
Deposit with Court 14 14
Deposit for Octroi 24 24
Deposit with Service tax authorities 20 58 3 41
Total 1,441 1,875
Deposit with Excise Authorities of ` 1,000/- wrt current and previous year is rounded off.
NOTE 10 - INVENTORIES
` In Lakhs
Raw materials 587 380

Goods In Transit (RMC) 169 15
Stores & consumables 121 110
Goods In Transit (Stores And Consumables) 3 2
Work- in- Progress 2,257 3,137 2,211 2,718
Machinery spares 59 233
Total 3,196 2,951
Notes
1) Raw material and components include ` 5/-(Previous year ` Nil) being material with sub-contractors
which is subject to confirmation and reconciliation.
54
NOTE 11 - TRADE RECEIVABLES- CURRENT

` In Lakhs
Trade Receivables, Considered Good

From related party 248 5,338
From others 1,139 724
Total 1,387 6,062

NOTE 12- CASH AND CASH EQUIVALENTS ` In Lakhs
1. Cash and cash equivalents

a. Balances with banks
In current accounts 27 13
In cash credit account 36 33
In term deposits 6,036 1,298
(Original Maturity of upto 3 months)
b. Cash and Stamps On Hand 1 2
Total 6,100 1,346
1. The cash and cash equivalents includes term deposits with original maturity period up to three
months. Term deposits with original maturity period beyond three months but up to maturity period
of 12 months have been included in Bank Balances in Note No .13
2. The above Cash and Cash Equivalents do not have any repatriation restrictions.
For the purpose of the cash flow statement, cash and cash equivalents comprise the following:
` In Lakhs
Balances with Banks 6,099 1,344

Cash and stamp on hand 1 2
Total 6,100 1,346
NOTE 13- BANK BALANCES

` In Lakhs
st st
Particulars As at 31 March 2018 As at 31 March 2017
In Term deposit
(Original Maturity of more than 3 months 158 207
and less than 12 months)
Margin Money Held With Bank 110 12
Total 268 219
1. Term Deposit with Original Matuirty period of more than 12 months is shown under Note No.7
2. The above Bank Balance do not have any repatriation Restrictions except to the extent of Margin
Money held with bank.
3. For an understanding of the Company's cash management policies, refer liquidity risk note
No.38 (vi)
4. Please refer Note No. 38 for fair value measurements.
55
NOTE 14 - OTHER FINANCIAL ASSETS

` In Lakhs
Interest accured on Term deposit 23 17

Total 23 17
NOTE 15 - CURRENT TAX ASSETS (NET)

` In Lakhs
Income Tax Refund (Due) 80 78

Total 80 78
NOTE 16 - OTHER CURRENT ASSETS

` In Lakhs
Prepaid expenses 20 11
Other Receivables - 1
Stipend receivables (trainees) 2 -
Sales tax receivable from BEL-MC - 6
Advance to suppliers 287 441
Advance TDS (XR-5) 23 31
Advance service tax paid on (XR-5) 14 21
Balance with revenue authorities
Input Service Tax - 12
Service Tax Receivable - 1
VAT refund receivable - -
FBT refund due - -
VAT input tax credit - -
CST refund receivable - 25
GST input tax credit 240 240 - 39
Total 586 550
1. Stipend receivables (trainees) of ` 43,351/- wrt previous year is rounded off.

2. VAT refund receivable of ` 10,494/- wrt previous year is rounded off.
3. FBT refund due of ` 45,928/- wrt current year & previous year is rounded off.
4. VAT input tax credit of ` 32,809/- wrt previous year is rounded off.
56
NOTE 17 - EQUITY SHARE CAPITAL ` In Lakhs

As at As at
Particulars
Authorised Capital:
1,00,00,000/- (Previous period 1,00,00,000/-) equity shares of ` 100/- each 10,000 10,000
Issued Capital:
66,31,367 (Previous period 59,22,635 ) equity shares of ` 100/- each 6,631 5,923
Subscribed and Paid - up Capital:

66,31,367 (Previous period 59,22,635 ) equity shares of ` 100/- each fully
paid up 6,631 5,923
Reconciliation of the no. of shares outstanding As at 31st March 2018 As at 31st March 2017
at the beginning and at the end of the year:
No. of shares Amount No. of shares Amount
No. of equity shares outstanding at the beginning
of the year 59,22,635 5,923 37,83,678 3,784
Add: Additional equity shares issued during the
year 7,08,732 709 21,38,957 2,139
Less: Equity Shares forfeited/Bought back during
the year - - - -
No. of equity shares outstanding at the end of the
year 66,31,367 6,631 59,22,635 5,923
Notes:
1. Out of the above, 66,31,367/- Equity Shares of ` 100 each (Previous Year 59,22,635) are held
by Bharat Electronics Ltd (BEL) the Holding Company, and it's nominees. BELOP is a wholly
th
owned subsidiary of BEL with effect from 30 July 2015.
2. Details of the Number of shares held by each shareholder holding more than 5% shares in the
company are as follows:
2017 - 18 2016 - 17
Particulars
Number of % of Number of % of
Shares Shareholding Shares Shareholding
Equity Shares:
Bharat Electronics Limited 66,31,367 100 59,22,635 100
Terms, Rights, preferences and restrictions attaching to each class of shares

a) The Company has only one class of shares viz, Equity Shares.
b) Each holder of Equity Shares is entitled to one vote on show of hands and in poll in proportion to
the Number of shares held.
c) Each Shareholder has a right to receive the dividend declared by the Company.
d) On winding up of the Company, the equity shareholders will be entitled to get the realised value of
the remaining assets of the Company, if any, after distribution of all preferential amounts as per
law. The distribution will be in proportion to the number of equity shares held by the
shareholders.
FINAL DIVIDEND ` In Lakhs

For the Year Ended For the Year Ended
Particulars
Final Dividend for FY 2016-17 144 -

Dividend Distribution Tax For FY 2016-17 29 -
57
NOTE 18- BORROWINGS

` In Lakhs
Loan from Related Party

Bharat Electronics Limited
(Holding Company)
Term Loan 1,490 1,001
Working Capital Loan 624 1,251
Total 2,114 2,252
Refer Note No 39 for details.

NOTE 19 - GOVERNMENT GRANTS ` In Lakhs
1 ) TPDUP PROJECT at the beginning of the year 2 11

Add: Received during the year - -
Less: Transferred to Statement of Profit & Loss
during the year 2 9
Balance at the end of the year -Sub-total (1) - 2
2) TOT (XD-4) PROJECT at the beginning of the year 16,408 17,646

Add: Received during the year 348 151
Less: Transferred to Statement of Profit & Loss
during the year 1,455 1,389
Balance at the end of the year Sub-total (2) 15,301 16,408
Total (1 + 2) 15,301 16,410
1. BELOP has entered into an Agreement with M/s Photonis, France for transfer of technology for
manufacture of Higher Specification I.I. Tubes at BELOP which is funded by way of Grant .The
percentage of grant to ToT Cost is 74.30% calculated on cumulative basis. Accordingly, 74.30% of
the expenses incurred in the year 2017-18 towards ToT has been transferred to income in the
Statement of Profit and Loss.
2. TPDUP Project is funded by way of Grant.
NOTE 20 - PROVISIONS ` In Lakhs
Long-term compensated absences 144 131

Total 144 131
The movement in the provisions during the year is as follows.

` In Lakhs
As at As at 31.03.2018
Particulars Additions Utilisation
01.04.2017 Long-term Short-term
Long-term compensated
144 24 10 144 15
absences
Total 144 24 10 144 15
58
NOTE 21 -
I) DEFERRED TAX LIABILITIES (NET)
` In Lakhs
st st
Nature of timing difference As at 31 March, 2018 As at 31 March, 2017
Deferred Tax Liabilities 1,014 953

Deferred Tax Assets 915 620
Total 99 333
II) AMOUNT RECOGNISED IN STATEMENT OF PROFIT & LOSS

` In Lakhs
st st
Particulars 31 March, 2018 31 March, 2017
Income Tax Expenses
Minimum Alternate Tax (MAT) 345 257

Less Deferred Tax 16 (375)
Less MAT Credit Entitlement 216 257
Income Tax Expenses 113 375
III) INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME ` In Lakhs

31st March, 2018 31st March, 2017
Particulars Tax Tax

Before Tax (expense) Net of Tax Before Tax (expense) Net of Tax
benefit benefit
Remeasurement (losses)/gains on
post employment defined benefit 17 (2) 15 (65) - (65)
plans
Total 17 (2) 15 (65) - (65)
DEFERRED TAX LIABILITY (NET)

IV) DEFERRED TAX ASSETS AND LIABILITIES ARE ATTRIBUTABLE TO THE FOLLOWING:
` In Lakhs
Net Deferred Tax
Deferred Tax (Assets) Deferred Tax Liability
Particulars (Assets)/Liability
` ` `
31.03.2018 31.03.2017 31.03.2018 31.03.2017 31.03.2018 31.03.2017
Trade Receivables-Provision (118) (118) - - (118) (118)

Provision others (231) (158) - - (231) (158)
Employee Benefits (52) (48) - - (52) (48)
Intangible Assets - - 623 394 623 394
Trade Payables (6) (7) - - (6) (7)
Plant Property and Equipment - - 391 559 391 559
MAT Credit (508) (289) - - (508) (289)
Total (915) (620) 1,014 953 99 333
59
V) MOVEMENT OF DEFERRED TAX ASSETS & LIABILITIES

` In Lakhs
Recognised in Recognised in
Balance as on Balance as on
Particulars P&L during OCI during
01.04.2017 31.03.2018
2017-18 2017-18
` ` ` `
Trade Receivables -Provision (118) - - (118)
Provision others (158) (73) - (231)
Employee Benefits (48) (5) - (52)
Intangible Assets 394 230 - 623
Trade Payables (7) (0) - (7)
Plant Property and Equipment 559 (168) - 391
MAT Credit (289) (216) - (508)
Total 333 (232) - 99
60
` In Lakhs ` In Lakhs
2017-18 2016-17
VI) Reconcilation of Effective Tax rate VI) Reconcilation of Effective Tax rate
Tax Tax
Amount Amount
SI no Particulars Effect Tax Rate SI no Particulars Effect Tax Rate
(`) (`)
(`) (`)
I Tax at Normal Rate I Tax at Normal Rate

1 Book profit 1,268 1 Book profit 857
2 Tax rate @33.06% 419 33.06 2 Tax rate @34.608% 296 34.61
Tax Provision expenses as per Books Tax Provision expenses as per Books
3 Tax Provision for Current Year 345 3 Tax Provision for Current Year 257
4 Less: Deferred Tax (including MAT credit) (232) 4 Less: Deferred Tax (including MAT credit) 118
5 Net Provision for Taxes 113 8.88 5 Net Provision for Taxes 375 43.77
Difference (2-5) 306 24.13% Difference (2-5) (79) -9.16%
Effect of Effect of
61
Non deductible Expenses 46 3.63 Non deductible Expenses (79) -9.16%
Set off Losses (352) (27.78) Total (79) -9.16%
Total (306) -24.13%
VII) TAX LOSSES CARRY FORWARD

` In Lakhs
Sr No Particulars 31.03.2018 31.03.2017
1 Tax Losses Carry forward NIL 745
viii) There are no items on which deferred tax has not been created.
BELOP
NOTE 22 - BORROWINGS ` In Lakhs

Loan from bank

SBI Buyers Credit 348 209
Axis Buyers Credit 1,022 1,149
Sub -Total (1) 1,370 1,358
Loan from related party
Bharat Electronics Limited
(Holding Company) 1,225 2,097
Sub -Total (2) 1,225 2,097
Total (1+2) 2,595 3,455
Refer Note No 39 for details.

NOTE 23- TRADE PAYABLES
` In Lakhs
As at As at
Particulars
(1) Dues to micro enterprises and small enterprises; and 145 -

(2) Dues to creditors other than micro enterprises and small enterprises 1,597 1,477
Total (1+2) 1,742 1,477
(i) Micro and Small Enterprises (MSE)

The information under MSMED Act, 2006 has been disclosed to the extent such vendors have
been identified by the company during the year. The details of amounts outstanding to them
based on available information with the Company is as under :
Particulars 2017-18 2016-17
Amount due and Payable at the year end

- Principal - -
- Interest on above Principal - -
Payments made during the year after the due date
- Principal 84 -
- Interest - -
Interest due and payable for principals already paid 1 -
Total Interest accrued and remained unpaid at year end 1 -
Interest remaining due and payable even in the
succeeding years, until such date when the interest dues
as above are actually paid to the small enterprise, for the - -
purpose of disallowance as deductible expenditure
under section 23 of MSMED Act, 2006.
(ii) The information is given in respect of such suppliers to the extent they could be indentified as a
Micro & Small Enterprises on the basis of information available with the Company.
(iii) Please refer Note No. 38 for fair value measurements
62
NOTE 24 - OTHER FINANCIAL LIABILITIES ` In Lakhs

st st
Capital Creditors 2,835 4,681
Accured interest on buyers credit 3 2
Accured Interest on Loan from BEL 18 26
EMD Deposits 6 5
Security Deposits 41 38
Outstanding Liabilities 61 53
Total 2,964 4,805

NOTE 25 - OTHER CURRENT LIABILITIES ` In Lakhs
st st
Advances from Customers 236 25
Statutory Dues Payable
33 40
TDS Payable
- 110
Sales Tax payable
GST Payable 583 -
Interest Payable to MSME 1 -
Other Statutory Dues Payable 10 627 10 160
Total 863 185
NOTE 26 - PROVISIONS ` In Lakhs

st st
Provision for Performance Warranty 698 477

Provisions towards employee benefits
Long-term compensated absences 15 13
Gratuity 4 78
Annual incentive 87 104
Provision for Bonus 2 -
Pay revision 270 378 13 208
Total 1,076 685
MOVEMENT OF PROVISIONS FOR THE YEAR 2017-18

I) PROVISION FOR PERFORMANCE WARRANTY ` In Lakhs
As at As at
Carrying Amount at the beginning of the year 477 158
Add: Additional Provision made during the year 239 322
Less : Amounts Used during the year 17 3
Less : Unused amounts reversed during the year - -
Carrying Amounts at the end of the year 699 477
Brief description of the nature of the obligation and the expected timing of any resulting
outflows of economic benefits :
1) Warranty Provision:
Costs are accrued at the time of sale of products.
Provisions towards warranty is based on the past experience. The provision is discharged over
the warranty period of 24/48 months from the date of sale. During the year additonal warranty
provision has been made in accordance with sales contracts.
63
EMPLOYEE BENEFITS ` In Lakhs

Ind AS-19
GRATUITY
Details of Employee Benefits as required by the Ind AS 19 Employee Benefits are as under:
Defined Benefit Plan

i) Actuarial gains and losses in respect of defined benefit plans recognised in the statement of Profit &
Loss is ` 21/- (Previous Year ` 13/-)
ii) Actuarial gains and losses in respect of defined benefit plans recognized in the statement Other
Compressive Income is ` (17)/- (Previous Year ` 65/-)
iii) Gratuity is a benefit to an employee based on 15 days last drawn salary for each completed year of
service.
iv) Gratuity plan is funded.
` In Lakhs
Particulars Gratuity
Changes in the present value of defined obligation representing Current Previous
(A)
reconciliation of opening and closing balances thereof are as follows : year Year
1 Present Value of Defined Benefit Obligation at the Beginning of the period 316 221
2 Interest Cost 23 18
3 Current Service Cost 16 12
4 Losses (gains) on Curtailment - -
5 Liabilities extinguished on settlements - -
6 Plan amendments - -
7 Actuarial (gains) / losses on obligations (16) 20
8 Actuarial (gains) / losses on obligations- Due to Experience 3 46
9 Benefits paid - -
10 Present value of Defined Benefit Obligation as on Balance Sheet date 343 316
` In Lakhs
Changes in the fair value of plan assets representing reconciliation
(B) Current year Previous Year
of opening and closing balances thereof are as follows:
1 Fair value of Plan assets at the Beginning of the period 238 205
2 Interest Income 17 16
3 Actual contributions by employers 78 16
4 Return on Plan Assets, Excluding Interest Income 5 1
5 Fair value of Plan assets at the End of the Period 339 238
` In Lakhs
(C) Amount Recognised in the Balance Sheet Current year Previous Year
1 Present value of Plan assets at the end of the period (343) (316)
2 Fair Value of Plan assets at the end of the year 339 238
3 Funded Status [Surplus/(Defecit)] (4) (78)
4 Net Asset/(Liability) recognized in the Balance Sheet (4) (78)
` In Lakhs
Reconciliation of Present Value of Defined Benefit Obligation and fair
(D) Current year Previous Year
value of plan assets showing amount recognized in the Balance Sheet
1 Present Value of Defined Benefit Obligation at the end of the period (343) (316)
2 Fair value of plan assets at the end of the period 339 238
3 Funded status [Surplus/(Deficit)] (4) (78)
4 Unrecognized Past Service Costs - -
5 Net asset/(Liability) recognized in Balance Sheet (4) (78)
64
` In Lakhs
(E) Expenses Recognised in the Statement of Profit or Loss for current Current year
Previous Year
Period
1 Current Service cost 16 12
2 Interest cost 6 1
3 Past Service cost - -
4 Total expense recognised in the Statement of Profit & Loss under
Contribution to Gratuity Fund 21 13
` In Lakhs
Expenses Recognised in the Other Comprehensive Income (OCI) for
(F) Current year Previous Year
Current Period
1 Acturial (Gains)/Losses on the Obligation for the period (12) 66
2 Return Plan Assets, Excluding Interest Income (5) (1)
3 Change in Asset Ceiling - -
4 Net (Income)/Expenses for the Period Recognised in OCI (17) 65
(G) In respect of Funded Benefits with respect to gratuity and superannuation, the fair value
of Plan assets represents the amounts invested through "Insurer Managed Funds"
` In Lakhs
(H) Principal Actuarial Assumptions : Current year Previous Year
1 Discount Rate (%) 7.78% 7.27%

2 Expected Return on plan assets (%) 7.78% 7.27%
3 Salary Escalation (%) 5.00% 5.00%
4 Rate of Employee Turnover 2.00% 2.00%
a) The Discount rate is based on the prevailing market yields of Indian Government securities as at the
Balance Sheet date for the estimated terms of the obligations.
b) Expected Rate of Return of Plan Assets : This is based on the expectation of the average long term
rate of return expected on investments of the Fund during the estimated term of obligations.
c) Salary Escalation Rate : The estimates of future salary increases considered takes into account the
inflation, seniority, promotion and other relevant factors.
` In Lakhs
(I) Sensitivity Analysis
Current year Previous Year
Projected Benefit Obligation on Current Assumptions 343 316
1 Delta Effect +1% Change in Rate of Discouting (28) (28)
2 Delta Effect -1% Change in Rate of Discouting 32 -
3 Delta Effect +1% Change in Rate of salary increase 33 33
4 Delta Effect -1% Change in Rate of salary increase (29) (29)
5 Delta Effect +1% Change in Rate of Employee Turnover 6 5
6 Delta Effect -1% Change in Rate of Employee Turnover (7) (6)
(J) Investment of Gratuity Fund is with Insurance Company
65
EMPLOYEE BENEFITS ` In Lakhs
LEAVE ENCASHMENT
IND AS-19
The company has a leave encashment scheme which is a non-funded scheme.
As per the scheme all employees of the company are entitled to encash their accumulated Annual
Leave subject to the retention of minimum leave as prescribed for each grade, The encashed leave is
payable at the rate of (Basic + DA) / 30 per day.
The liability for payment of long term compensated absence such as annual leave valued on actuarial
basis is ` 144/- as on 31.03.2018. The actuarial valuation has been done using PUC method.
Particulars 31.03.2018 31.03.2017
Retirement Age 58 years 58 years

Attrition Rate 2% 2%
Future Salary Rise 5% 5%
Rate of Discounting 7.78% 7.27%
Mortality Table Indian Assured Lives Mortality (2006-08) Indian Assured Lives Mortality (2006-08)
The amount of Liability on long term compensated absences has been bifurcated between current and
non-current based on the report of Actuary.
Current Liability: ` 15/-

Non Current Liability ` 144/-
Total ` 159/-
66
NOTE 27 - CURRENT TAX LIABILITIES ` In Lakhs

st
Particulars st
As at 31 March, 2018 As at 31 March, 2017
Provision for income tax (Net of advance tax) 176 248

Interest on Income Tax 15 20
Total 191 268
NOTE 28 - REVENUE FROM OPERATION

` In Lakhs
Particulars
(a) Sale of products (Including Excise Duty) 12,146 12,341
(b) Sale of services 18 47
(c ) Total Revenue (a+b) 12,164 12,388
NOTE 29 - OTHER INCOME

` In Lakhs
Particulars 31st March 2018 31st March 2017
Interest on term deposits 105 74

Interest others 6 3
Sundry provisions and credit balances no longer required, written
back 172 202
Net gain on foreign currency transaction and translation (net) @ - 451
Miscellaneous income 8 4
Total 291 734
@ The foreign exchange Gain /( loss) is on account of rate variations arising on transactions in foreign
currency between the date of recording of such transactions and the settlement/ the reporting date.
NOTE 30 - COST OF MATERIAL CONSUMED

` In Lakhs
Particulars
1) Raw material and components

consumed
Opening stock 536 432
Add: Purchases 6,092 6,283
6,628 6,715
Less : Closing stock 607 536
Sub - Total (1) 6,021 6,179
2) Stores and consumables consumed

Opening stock 112 97
Add: Purchases 334 128
446 224
Less : Closing stock 121 112
Sub -Total (2) 325 112
Total (1+2) 6,346 6,291
67
NOTE 31 - CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK-IN -TRADE AND

WORK-IN-PROGRESS ` In Lakhs
Work-in Progress
Opening stock 2,211 1,861
Closing stock 2,257 (46) 2,211 (350)
Finished Goods
Opening stock - -
Closing stock - - - -
Total Decrease/ (Increase) (46) (350)
NOTE 32 - EMPLOYEE BENEFIT EXPENSES ` In Lakhs

Salaries and allowances 1,111 762
Leave encashment 28 49
Contribution to provident fund and other funds
Provident fund 59 61
Superannuation fund 11 13
Gratuity 21 13
Other funds 3 94 2 89
Administration and EDLI charges on PF 4 6
Staff welfare expenses 28 20
Total 1,265 926
NOTE 33 - FINANCE COSTS ` In Lakhs

Interest others 1 -
Interest on Short Term funding by BEL 221 273
Interest on Loans from BEL 211 359
Interest on Cash Credit - 22
Interest on Buyers Credit 9 12
Interest on Income Tax 15 20
Interest levied on Delayed Payment of IGST & BCD - -
Interest Levied on Delayed Payment to MSME 1 -
Interest on GST - -
Sub-Total (1) 458 686
Other borrowing cost
Loan processing charges 24 55
Sub-Total (2) 55
24
Total (1+2) 482 741
1. Interest Others of ` 40,946/- wrt previous year is rounded off.

2. Interest On Cash Credit of ` 41,929/- wrt current year is rounded off.
3. Interest levied on Delayed Payment of IGST & BCD ` 9,281/-wrt current year is rounded off.
4. Interest on GST ` 5,611/-wrt current year is rounded off.
5. T h e a m o u n t o f i n t e r e s t c a p i t a l i s e d o n l o a n f r o m B E L d u r i n g t h e Ye a r i s ` 8 4 / -
(Previous year - `17/-) which is not included above. Capitalisation Rate 6.99% p.a.
NOTE 34 - DEPRECIATION / AMORTIZATION ` In Lakhs

Depreciation / Amortization on Property, Plant &
Equipments 804 747
Amortization on Intangible Assets 1,250 1,250
Total 2,054 1,997
68
NOTE 35 - TECHNICAL ASSISTANCE FEE AND TRAVEL EXPENSES

` In Lakhs
Technical assistance fees 311 603

Travelling Expenses 86 -
Total 397 603
NOTE 36 - OTHER EXPENSES

` In Lakhs
Power and fuel 285 267

Water charges 4 3
Royalty 19 19
Travelling & conveyance 28 25
Communication 9 7
Printing and stationery 5 3
Insurance 18 19
Rates & taxes 22 28
Bank charges 76 66
Legal & professional charges 14 10
Loss on foreign exchange (net)** 456 -
Write-off of fixed assets - -
Repairs
Machinery 211 158
Building 4 4
General maintenance expenses 130 94
Provision for Doubtful Debts and Liquidated Damages - 23
Provision for Doubtful Advances 1 -
Provision for repairs during warranty period 239 322
Miscellaneous expenses 17 25
Total 1,538 1,073
1.** The Foreign Exchange Loss is on account of rate variations arising on transactions in foreign
currency between the date of recording of such transactions and the settlement/the reporting date.
2. Write off of fixed Assets of ` 5,698/- wrt previous year is rounded off.
69
NOTE 37(1) - Earning per Share

(a) The amount used as the numerator in calculating basic and diluted earning per share is the net
profit after tax for the year disclosed in the statement of Profit and Loss.
(b) The weighted average number of equity shares used as the denominator in calculating both
basic and diluted earnings per share is 60,15,838 Shares.
Earning Per Share 2017-18 2016-17
Earning Per Share (Basic & Diluted) from continuing Operation 19.20 11.57
Earning Per Share (Basic & Diluted) from discontinuing Operation - -
Amount used as the numerators in calculating basic & diluted earnings per share 1,155 483
Weighted average number of equity shares used in computing basic and diluted
earnings per share 60,15,838 41,75,846
NOTE 37(2)- DISCLOSURE RELATING TO CSR EXPENDITURE

` In Lakhs
Yet To be Appropriation CSR
Particulars In Cash Total For Unspent
Paid In Cash Amount Grant Total
i.Construction / Acquisition on any asset

- - - 13 13
ii.Purpose other than (i) above
- - - (12) (12)
70
NOTE NO. 38
FINANCIAL RISK MANAGEMENT
(i) RISK MANAGEMENT FRAMEWORK AND POLICIES
The Company is broadly exposed to credit risk, liquidity risk and market risk (fluctuations in
exchange rates, interest rates and price risk) as a result of financial instruments.
The Board of Directors has the overall responsibility for the establishment, monitoring and
supervision of the Company's risk management framework. For this purpose, the Board has
set up a Risk Management Committee which is responsible for developing and monitoring
the risk management policies. The Company has an established Risk Management Policy
that outlines risk management structure and provides a comprehensive frame work for
identification, evaluation, prioritization and treatment of various risks associated with
different areas of financial and operations.
(ii) MARKET RISK

Market risk is the risk due to changes in market prices – such as foreign exchange rates,
interest rates that affect the Company's income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
The Company’s activities expose it primarily to the financial risks of changes in foreign
exchange rates and interest rate movements (refer to notes below on currency risk and interest
risk).
(iii) CURRENCY RISK

BELOP is exposed to foreign exchange risk arising from foreign currency transactions
primarily relating to purchases and sales made in foreign currencies such as US Dollar
(USD), Euro, SGD, CHF. Foreign exchange risk arises from existing and future commercial
transactions and recognised assets and liabilities denominated in a currency that is not the
Company’s functional currency (INR).
The Company’s Risk Management Committee reviews the Company’s exposure to this risk
on a regular basis.
The Company’s export proceeds which are realized in USD are received in an Export Earners
Foreign Currency account (EEFC) which is then utilised for payments in USD foreign currency,
thereby mitigating the currency risk on exports.
In case of customer orders, the ERV clause is built-in the contract which eliminates the foreign
currency fluctuation risk.
The company has not entered into any derivative contracts during the financial year 2017-18.
st
As on 31 March 2018, there are no outstanding derivative contracts
Company’s exposure to currency risk is as follows: -

` In Lakhs
st st
Particulars 31 March, 2018 31 March, 2017
Euro USD Euro USD
Bank Balance - - - -
` - - 8/-
Bank Loans - Secured 12/- 5/- 17/- 3/-
` 1,022/- 347/- 1,171/- 187/-
Trade Payables 51/- - 86/- -
` 4,154/- 8/- 6,030/- 7/-
Net Exposure i.r.o recognised assets and liabilities 63/- 13/- 102/- 3/-
` 5,176 /- 355 /- 7,201/- 186 /-
71
iv) FOREIGN CURRENCY SENSITIVITY

` In Lakhs
A reasonably possible strengthening / (weakening) of the Indian Rupee against major currency
Euro as at 31 March 2018 would have affected the measurement of financial instruments
denominated in a foreign currency and affected Profit or Loss and Equity by the amounts shown
below. This analysis assumes that all other variables, in particular interest rates, remain
constant and ignores any impact of forecast sales and purchases.
Impact on Profit and Equity

Particulars
31st March, 2018 31st March, 2017
Currency Wise –
Euro Rate Increase by 5% -208 -360
Currency Wise –
Euro Rate Decrease by 5% 208 360
(v) INTEREST RATE RISK

Interest rate risk can either be fair value interest rate risk or cash flow interest rate risk. Fair
value interest rate risk is the risk of changes in fair values of fixed interest bearing investments
because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future
cash flows of floating interest bearing instruments will fluctuate because of fluctuations in
market interest rate.
a) The company has been sanctioned working capital loan for ` 5,000 by BEL. The interest is
charged monthly at the rate of yield earned by BEL on the deposits made with banks upto
previous month.
b) The company has been sanctioned Term loan for ` 4,600/- by BEL for execution of the XR-5
project. The interest is charged monthly at the rate of yield earned by BEL on the deposits
made with banks upto previous month or the interest rate of yield on a Government of India
bond of five year tenure whichever is higher.
c) BELOP has also been sanctioned fund based and non-fund based working capital limits of
` 4,600/- by the consortium bankers of SBI (Lead bank) and Axis Bank. The rate of interest is
8.45% p.a. (Axis Bank) and 8.35% p.a.(SBI). The rate of interest charged by SBI and Axis
Bank are linked to their base rate which is subject to fluctuations. Outstanding as on
st
31 March 2018 is NIL in respect of which interest payable is based on SBI and Axis Bank’s
base rate (as per the terms and conditions, both SBI and Axis Bank are eligible to reset the
interest charged on periodic basis).
(vi) LIQUIDITY RISK

Liquidity Risk is the risk that a Company could encounter if it faces difficulty in meeting the
obligations associated with financial liabilities by delivering cash and other financial asset or the
risk that the Company will face difficulty in raising financial resources required to fulfill its
commitments. The Company’s exposure to liquidity risk is very minimal as it has a prudent
liquidity risk management process in place which ensures maintaining adequate cash to pay its
liabilities when they are due. To ensure continuity of funding, the Company has access to
short-term bank facilities in the nature of cash credit facility to fund its ongoing working capital
requirements.
The Company meets its liquidity requirement mainly through internally generated cash flows
which is monitored by mapping expected cash inflows, to meet the liabilities.
The amounts disclosed are contractual undisclosed cash flows. The tables below analyse the
company’s financial liabilities based on their contractual maturities.
72
NOTE NO. 38 –FINANCIAL RISK MANAGEMENT – LIQUIDITY RISK ( POINT NO. VI)
(I) MATURITIES OF FINANCIAL LIABILITIES: -
The table below reflects the all financial liabilities into relevant maturity groupings based on their
contractual maturities. The amounts disclosed are gross and undiscounted cash flows.
st
AS AT 31 MARCH 2018 ` In Lakhs
Contractual maturities of Less than 3 months to 6 months to Between 1 Between 2
Sr No 3 months 6 months 1 year and 2 years and 5 years Total
financial liabilities
I Trade Payables 1,742 - - - - 1,742
II Borrowing 1,682 312 624 1594 496 4,708
III Other Financial Liabilities:-
A Other Payable 2,835 - - - - 2,835
B Security Deposits 46 - - - - 46
C Outstanding Expenses 61 - - - - 61
D Interest On Borrowing 20 - - - - 20
st
AS AT 31 MARCH 2017 ` In Lakhs
Contractual maturities of Less than 3 months to 6 months to Between 1 Between 2
Sr No 3 months 6 months 1 year and 2 years and 5 years Total
financial liabilities
I Trade Payables 1,477 - - - - 1,477
II Borrowing 1,620 623 1,245 2,219 - 5,707
III Other Financial Liabilities:-
A Other Payable 4,681 - - - - 4,681
B Security Deposits 43 - - - - 43
C Outstanding Expenses 53 - - - - 53
D Interest On Borrowing 28 - - - - 28
73
(vii) CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligations
resulting in financial loss to the Company. Credit risk arises from credit exposures from
customers, cash and cash equivalent with banks, security deposits and loans.
The credit risk of the Company is managed at a corporate level with directives of the risk
management committee.
Significant amount of trade receivables are due from Government / Government
Departments, Public Sector Companies (PSUs) consequent to which the Company does
not have a credit risk associated with such receivables. In case of non Government trade
receivables, sales are generally carried out based on Letter of Credit established by the
customer thereby reducing the credit risk.
Advance payments are made in very special cases without bank guarantee after obtaining
permission of the Board but the amount of advance payments is very minimal as compared to
the total payments. Impairment losses on financial assets (representing mainly liquidated
damages leviable for delayed deliveries and other disallowances) have been made after
factoring contractual terms, etc. and other indicators to reflect expected credit loss.
The cash and cash equivalent with banks are in the form of short term deposits with maturity
period of upto 1 year. The Company maintains it’s short-term deposits with nationalised
/scheduled commercial banks and it’s consortium bankers only. The Company has not
incurred any losses on account of default from banks on deposits.
The credit risk in respect of other financial assets is negligible as they comprise of term
deposits held with banks.
(viii) CAPITAL MANAGEMENT

The Company’s Capital Management objective is to maintain a strong capital base and
optimal capital structure to provide adequate returns to the shareholders and ensure the
ability of the company to continue as a going concern. The company has a conservative
approach for raising capital through debt. In order to meet the requirements of XR-5 project,
the company has raised funds by way of rights issue during 2016-17 and 2017-18 and by
way of loan during 2016-17 and 2017-18.
The Company plans to follow a Dividend Distribution Policy which proposes payments of
dividend and retention of surplus for future growth and enhancing shareholders wealth.
The company’s borrowing as on 31st march 2018 is outlined below:-
` In Lakhs
Amount Outstanding as on
Sr. No. Particulars Remarks
31st March 2018
Working Capital Loan from BEL 1,849 Refer Note No.18 and 22 of
1
Balance Sheet
2 Term Loan from BEL(XR-5 Project) 1,490 Refer Note No.18 .
3 Working Capital from Banks 1,370 Payment toward buyers credit availed
(Buyers Credit) not due on 31st March 2018. Refer
Note No. 22
THE GEARING RATIO IS GIVEN BELOW:-

` In Lakhs
Net debt 4,708 5,707
Total equity 18,819 16,059
Net debt to equity ratio 0.25 0.36
74
Note No. 38 –Financial Risk Management (ix)

Financial Instruments - Fair Value Measurements
1. Accounting classification and fair values

The following tables show the carrying amount and fair values of financial assets and liabilities:
a) Financial Assets ` In Lakhs
Sr.
No.
Particulars 31st March 2018 31st March 2017
Amortised Amortised
FVPL FVOCI FVPL FVOCI
Cost Cost
Financial Assets measured at fair value
Total
Financial Assets not measured at fair value
I Trade Receivables - - 1,387 - - 6,062
II Loans
A Security deposits - - 33 - - 33
III Cash and cash equivalents - - 6,100 - - 1,346
IV Other Bank Balances - - 268 - - 219
V Other Financial Assets
A Term Deposit 23 55
B Interest On Term Deposits - - 23 - - 18
Total 7,834 7,733
b) Financial Liabilities ` In Lakhs

Sr. st st
Particulars 31 March 2018 31 March 2017
No.
Amortised Amortised
FVPL FVOCI FVPL FVOCI
Cost Cost
Financial Liabilities measured at fair value - - - - - -

Total - - - - - -
Financial Liabilities not measured at fair value - - - - - -
I Borrowings - - 4,708 - - 5,707
II Trade Payables - - 1,742 - - 1,477
III Other Financial Liabilities
A Other Payable 2,835 4,681
B Security Deposits - - 46 - - 43
C Outstanding Expenses - - 61 - - 53
D Interest On Borrowing - - 20 - - 28
Total 9,412 11,989
75
GENERAL NOTES TO ACCOUNTS ` In Lakhs

NOTE NO. 39
1. BORROWINGS
i) WORKING CAPITAL LOAN FROM BANKS
a) The company has been sanctioned working capital limit of ` 4,600/- by the consortium
bankers of SBI (Lead bank) and Axis Bank. The rate of interest is 8.45% p.a. (Axis Bank)
and 8.35%p.a.(SBI).
b) Utilisation of Buyers Credit as on 31st March, 2018 is ` 1,370/- (Previous Year ` 1,358/-)
c) The above sanctioned limits are also secured by Hypothecation of raw materials,
stock-in-process, finished stocks, stores and spares, book debts and other current assets
(except spare parts relating to plant and machinery) by way of first charge as outlined below.
The sanctioned limits are also secured by first pari passu charge by way of equitable
mortgage on Land & Building.
Sr. No. Particulars 31.03.2018 31.03.2017
1 Inventories 3,196 2,951

2 Trade Receivables 1,387 6,062
3 Cash & Cash Equivalent 6,100 1,346
4 Bank Balance 268 219
5 Other Financial Assets 23 17
6 Other Current Assets 586 550
Total Current Assets 11,560 11,145
ii) WORKING CAPITAL LOAN FROM BEL

BELOP has availed a working capital Loan of ` 5,000/- from BEL. After reschedulement the
principal payments are payable from October 2017 to July 2019. The outstanding loan amount
as on 31.03.2018 is ` 1,849/- (` 3,348/-). The interest is charged monthly at the rate of yield
earned by BEL on the deposits made with banks upto previous month.
iii) TERM LOAN FOR XR-5 PROJECT FROM BEL
BELOP has availed a Term Loan of ` 4,600/- from BEL. After reshedulement, the principal
payments are payable in 36 equal instalments from August 2019. The outstanding loan amount
as on 31.03.2018 is ` 1,490/- (` 1,001/-) The interest is charged monthly at the rate of yield
earned by BEL on the deposits made with banks upto previous month or the interest rate of yield
on a Government of India bond of five year tenure whichever is higher.
2. DETAILS OF THE XR-5 PROJECT

The XR-5 project was under implementation during the year. Majority of the tangible assets under
the XR-5 project have been installed. The License Fees paid is shown as intangible assets under
development. The technical assistance rendered under the project during the year has been
charged to the Statement of Profit and Loss.
FUNDING OF THE XR-5 PROJECT
In order to enhance the specifications of the I.I. Tubes to meet the customer requirements, BELOP
has entered into an Agreement with M/s Photonis, France for ToT for XR-5 I.I. Tubes during May
2014. BEL has committed to fund the basic project cost of Euro 22.95 Million by way of infusion of
equity and the balance amount of the project cost amounting to apprx. ` 4,600/- towards related
taxes and duties and towards infrastructure upgradation at BELOP by way of loan.
RIGHTS ISSUE
During the year as part of the funding for the XR-5 project, BELOP has made rights issue for
7,08,732 (21,38,957) equity shares at a premium and the same has been subscribed and shares
have been allotted.
76
AVAILMENT OF LOAN ` In Lakhs

During the year as part of the funding for the XR-5 project, BELOP has availed loan of ` 492/-
(`1,039/-) (against sanctioned term loan of ` 4,600/-) from BEL towards funding of the XR-5
project.
3. Estimated amount of contracts remaining to be executed on capital account and not provided for
`169/- (Previous Year ` 159/-).
4. DETAILS OF GRANT TRANSFER IN RESPECT OF TOT (XD-4)
Sr.No Particulars ` in lakhs

2017-18 2016-17
1 Depreciation 540 548
2 Amortisation of License Fee 1,250 1,250
3 Repairs & Maintenance 169 72
4 Total 1,959 1,870
5 % of Grant Transfer 74.30% 74.30%
6 Grant Transfer (4*5) 1,455 1,389
5. In case of TPDUP project the excess Net Block of fixed assets procured represents the amount of
expenses incurred by the company for which no grant was received.
6. PAYMENT TO AUDITORS (NET OF GST/SERVICETAX)
` In Lakhs
Particulars 2017-18 2016-17
Audit fees 1 1
Total 1 1
7. RELATED PARTY DISCLOSURES:

A) NAME OF THE RELATED PARTY AND NATURE OF RELATIONSHIP WHERE CONTROL
EXISTS :
Name of Related Party Nature of Relationship
Bharat Electronics Limited Holding Company
B) RELATED PARTY TRANSACTIONS WITH HOLDING COMPANY BHARAT ELECTRONIC

LIMITED :
` In Lakhs
Amount of Amount of Amount Outstanding Amount Outstanding
Nature of Transactions Transactions Transactions at the end of year at the end of year
2017-18 2016-17 31.03.2018 31.03.2017
(`) (`) Debit (`) Credit (`) Debit (`) Credit (`)
Sales 5,057 7,614 - - - -
Purchases 4 - - - - -
Interest Paid 516 649 - - - -
Trade Receivables** - - 388 - 5,479 -
Working Capital Loan
from BEL - - - 1,849 - 3,348
Term Loan From BEL - - - 1,490 - 1,001
Interest on BEL Loan
(Working Capital) - - - 9 - 20
Interest on Term Loan
from BEL - - - 9 - 6
Sales Tax receivable - - - - 6 -
77
` In Lakhs
** Debtors includes ` 140/- (previous year ` 117/-) for which provision for doubtful debts has
been made.
th
i. BELOP has entered in to an agreement with BEL on 30 April 2013 for temporary funding of TOT
cost by BEL for `104.16/- and as per the terms of the agreement BELOP will compensate BEL for
the cost of funds in the form of price discount against supplies of Image Intensifier Tubes.
ii. Two Officials are on deputation from, BEL i.e Holding Company and salaries etc is paid by the
BEL Optronic Devices Limited during the year as per the terms and conditions of employment.
iii. BEL Optronic Devices Limited has also borne the proportionate salary paid to a vigilance officer
appointed by BEL.
Transaction with Government and Government Related Entities :-

As BELOP is a government entity under the control of Ministry of Defence (MoD) and has availed
exemption from detailed disclosures required under IND-AS 24 with respect to related party
transactions with government and government related entities. An amount of ` 1,260/-
(previous year ` 706/- ) is outstanding as Trade Receivables as on 31.03.2018.
C) KEY MANAGEMENT PERSONNEL ARE AS FOLLOWS:
Sr.No. Name of Key Management Personnel Designation
1 Mr. M.V. Gowtama CMD,BEL and Chairman, BELOP
2 Dr. Ajit. T. Kalghatgi Director (R & D), BEL and Director, BELOP
3 Mrs. Anandi Ramalingam Director (Mktg.), BEL and Director, BELOP
4 Mr. Koshy Alexander (From 24.10.2017) Director (Finance),BEL & Director BELOP
5 Mr. DCN Srinivasa Rao Chief Executive Officer, BELOP
6 Ms. Priya .S. Iyer Company Secretary & CFO, BELOP
The above four Directors are Part time directors and no remuneration has been paid by the
company to them during this year. The remuneration paid to CEO,BELOP and to the Company
Secretary & CFO, BELOP is given below:-
` In Lakhs
Sr.No. Particulars Short-term benefits Retirement Benefit Total
2017-18 2016-17 2017-18 2016-17 2017-18 2016-17
1 Mr. DCN Srinivasa Rao 33* 8 7 3 40 11
2 Ms. Priya .S. Iyer 11 14** 2 3 13 17
* Includes arrears for the period 01.01.2017 to 31.03.2017

** Includes arrears for the period 01.04.2012 to 31.03.2016
8. As per the IND-AS Accounting Standard – 108 on “Operating Segments” the company’s product
falls in one segment only viz., Image Intensifier Tubes, hence separate segment wise results are
not disclosed.
9. The company which is a single composite cash generating unit has on the basis of assessment of
internal and external factors found that there are no indications of impairment of its assets and
hence no provision for the same is considered necessary.
10. The company has incurred an expenditure of ` 14/- (Gross –Revenue) (Previous year ` 27/- in
respect of capital equipments) related to Research and Development during the year 2017-18.
78
11. The details of the company’s superannuation Scheme is outlined below:-

a) As per the terms of the pay revision for executives for the period 01.04.2012 to 31.03.2017
a revised superannuation scheme was to be formulated covering all the executives with
effect from 01.04.2017.
b) Accordingly, Management approval is being obtained for opting for enrolling all the
executives in the National Pension Scheme (NPS).
c) As per the terms of the Scheme, the company would contribute a maximum of 7% of the
applicable(Basic+ DA) (2012) scales per year. The remittance in the fund would be made in the
month of June of the subsequent financial year based on the profitability earned by the
company.
d) The executives would also be required to contribute 1% of the applicable (Basic + DA) (2012)
scales per year on a quarterly basis.
12. CONTINGENT LIABILITIES

` In Lakhs
Sr.No. Particulars 31.03.2018 31.03.2017
a) Outstanding Letters of Credit 260 116

b) Outstanding Bank Guarantees (Counter Guarantee given
against same by Company) 294 10
c) Octroi Demand disputed by the Company and deposited with
Sr. Divisional Bench of Pune 14 14
Court in the financial year 2005-06. Presently the case is
pending with Small Causes Court, Pune.
d) Service tax disputed by the company 198 28
st
e) Provisional Liquidated damages upto 31 March unexecuted Nil Nil
customer orders where the delivery date has expired.
f) Appeal filed by the Income Tax Department in Mumbai, High 387 387
Court against order by ITAT in favour of the company in respect
benefits availed under Section 10B of the Income Tax Act, 1961.
g) Total (a to f) 1,120 555
13. Liability, if any, in respect of labour matters under dispute before various judicial authorities is not
ascertainable.
14. Consequent to introduction of Goods and Service Tax (GST) with effect from 01.07.2017, Excise
Duty is no longer leviable on manufacture of goods and hence is not part of Gross Turnover w.e.f
1st July 2017.
th
15. Ind AS 115- Revenue from Contract with Customers: On March 28 , 2018, Ministry of Corporate
Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. This standard
st
shall apply for accounting periods beginning on or after 1 April, 2018. The standard permits two
methods of transition.
1. Retrospectively to each prior reporting period presented in accordance with Ind AS 8, Accounting
Policies, Changes in Accounting Estimates and Errors.
2. Retrospectively with the cumulative effect of initially applying the Standard recognized at the
date of initial application.
The Company will adopt this standard on April 1st, 2018 retrospectively with the cumulative effect of
initially applying the Standard as an adjustment to the opening balance of retained earnings (or
other component of equity, as appropriate) of the accounting period. The effect on adoption of Ind
AS 115 is not expected to be material.
79
16. Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On
th
March 28 , 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies
(Indian Accounting Standards) Amendment Rules, 2018 to Ind AS 21 (The Effects of Changes in
Foreign Exchange Rates) with effect from April 1st, 2018. This amendment clarifies the date of the
transaction for the purpose of determining the exchange rate to use on initial recognition of the
related asset, expense or income (or part of it) is the date when an entity has received or paid
advance consideration in a foreign currency. The Company is evaluating the effect of this
amendment on the financial statements. However, the impact is expected not to be material.
17. Previous year's figures have been regrouped/ reclassified where ever considered necessary.
Figure in brackets relate to previous year.
18. The Accounts for the year approved by the Board of Directors on 23rd May 2018 and certified by the
Statutory Auditors on 23rd May 2018 were revised in the light of C & AG’s observations under
Section 143(6)(b) of the Companies Act, 2013.
a) Correction in Note 12- Cash and Cash Equivalents in additional disclosure “Original maturity up
to three months” instead of “Original Maturity more than three months.”
b) Correction in Note 39- General Notes to Accounts – Sub Point 7 (b) Related Party Transactions
with holding Company Bharat Electronics Limited.
Trade Receivables was “Rs. 388 Lakhs” instead of “Rs. 394 Lakhs.”
There is no impact on the Statement of Profit and Loss and Balance Sheet due to the above
changes.
80
Independent Auditor’s Report
To the Members of BEL Optronic Devices Limited,
Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of BEL Optronic Devices
st
Limited (‘the Company’), which comprise the Balance Sheet as at 31 March 2018, the Statement of
Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement
of Changes in Equity for the year then ended, and a summary of significant accounting policies and
other explanatory information.
In light of the observations arising out of audit by the office of the Comptroller and Auditor General
(CAG) on certain disclosures in standalone financial statements, the relevant disclosures are updated,
refer note 39(18). These updates don’t lead to any change in our opinion on the standalone financials
statements.
This report supersedes our earlier report dated 23rd May 2018.
Management’s Responsibility for the Standalone Ind AS Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these standalone
Ind AS financial statements that give a true and fair view of the financial position, financial performance,
cash flows and the statement of changes in equity of the Company in accordance with the accounting
principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes 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
frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of
the standalone Ind AS financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on
our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the provisions of the Act and the
Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the
Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the standalone Ind AS financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the standalone
Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company’s preparation of the standalone Ind
AS financial statements that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of the
accounting policies used and the reasonableness of the accounting estimates made by the Company’s
Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
81
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid standalone Ind AS financial statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the accounting principles generally accepted
in India including the Ind AS, of the state of affairs (financial position) of the Company as at 31 March
2018 and its profit (financial performance including other comprehensive income), its cash flows and
the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure
A”, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(b) in our opinion proper books of account as required by law have been kept by the Company so
far as it appears from our examination of those books;
( c) the balance sheet, the statement of profit and loss, the cash flow statement and the statement
of changes in equity dealt with by this Report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2018
taken on record by the Board of Directors, none of the directors is disqualified as on
31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate report in
“Annexure B”; and
(g) with respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its standalone Ind AS
financial position in its financial statements – Refer Note 39(12) to the financial statements;
ii. the Company does not require to make provision, as required under the applicable law or
accounting standards for material foreseeable losses, if any on long term contracts including
derivate contracts, since no such contracts have been entered into.
iii. the provisions related to the said clause relating to transfer of amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company are not
applicable to the company.
For MSDN & Associates

Chartered Accountants
Firm’s registration number: 112479W
-sd-
CA. Deepak Sugandhi
Partner
Membership number: 104950
Pune
July 26th, 2018
82
Annexure - A to the Auditors’ Report

The Annexure referred to in Independent Auditors’ Report to the members of BEL Optronic Devices
Limited on the standalone Ind AS financial statements for the year ended 31 March 2018, we report
that:
1. The Company has maintained proper records showing full particulars, including quantitative details
and situation of fixed asset
a. The Company has a regular programme of physical verification of its fixed assets by which fixed
assets are verified in a phased manner over a period of three years.
b. In accordance with this programme certain fixed assets were verified during the year and no
material discrepancies were noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the company and the nature of its
assets.
c. According to the information and explanations given to us and on the basis of our examination of
the records of the company, the title deeds of immovable properties are held in the name of the
company.
2. The physical verification of inventory has been conducted at the year-end by the management and
no material discrepancies were noticed between books of accounts and physical verification.
3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited
Liability partnerships or other parties covered in the register maintained under Section 189 of the
Companies Act, 2013 ('the Act'). Hence sub paras (a), (b) and (c) are not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has not
given any loans or made any investments and hence the said clause regarding the compliance with
the provisions of section 185 and 186 of the Act, with respect to the loans and investments made is
not applicable
5. The Company has not accepted any deposits from the public.
6. The Company is required to maintain cost records as prescribed in section 148 (1) of the
Companies Act. As informed, the company is in the process of compilation of relevant cost
statements and records. We have relied on the certificate given by an independent professional
appointed by the company in this behalf.
7. According to the information and explanations given to us and on the basis of our examination of the
records of the Company, amounts deducted/ accrued in the books of account in respect of
undisputed statutory dues including provident fund, income-tax, sales tax, value added tax, duty of
customs, employees' state insurance and duty of excise, service tax, cess and other material
statutory dues have been regularly deposited during the year by the Company with the appropriate
authorities.
a. According to the information and explanations given to us, no undisputed amounts payable in
respect of provident fund, income tax, sales tax, value added tax, duty of customs, service tax,
cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more
than six months from the date they became payable.
b. According to the information and explanations given to us, there are no material dues of income
tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax
or cess which have not been deposited on account of any dispute apart from the amounts as
disclosed in Notes to accounts. (Note No. 39(12))
8. The Company has not defaulted in repayment of loans or borrowings from any financial institution,
banks, government or dues to debenture holders during the year. Accordingly, the said clause of the
Order is not applicable.
9. In our opinion and according to the information and explanations given to us, the Company has
utilized the money raised by way of term loans during the year for the purposes for which they were
raised. The company has not raised any funds from initial public offer/ further public offer
(including debt instruments).
83
10. According to the information and explanations given to us, no material fraud by the Company or on
the Company by its officers or employees has been noticed or reported during the course of our
audit
11. According to the information and explanations given to us and based on our examination of the
records of the Company, the Company has not paid/provided for any managerial remuneration and
hence the requisite approvals mandated by the provisions of section 197 read with Schedule V to
the Act are not called for.
12. In our opinion and according to the information and explanations given to us, the Company is not a
Nidhi company. Accordingly, this clause of the Order is not applicable.
records of the Company, transactions with the related parties are in compliance with sections 177
and 188 of the Act where applicable and details of such transactions have been disclosed in the
financial statements as required by the applicable accounting standards.
14. According to the information and explanations give to us and based on our examination of the
records of the Company, the Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures during the year
records of the Company, the Company has not entered into non-cash transactions with directors or
persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act
1934.

-sd-
CA. Deepak Sugandhi
Partner
Pune
July 26th, 2018
84
Annexure - B to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of BEL Optronic Devices Limited
(“the Company”) as of 31 March 2018 in conjunction with our audit of the standalone Ind AS financial
statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls
based on the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’).
These responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the
timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of standalone
Ind AS financial statements for external purposes in accordance with generally accepted accounting
principles. A company's internal financial control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS
financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets
that could have a material effect on the financial statements.
85
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial
controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March 2018, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India.

-sd-
CA. Deepak Sugandhi
Partner
Pune
July 26th, 2018
86
Annexure - C to the Auditors’ Report
Response to the directions issued by the Comptroller and Auditor-General of India under
Sec 143 (5) of the Companies Act, 2013.
Based on Management response and our review of accounts, we submit the following:
Sr.No. Directions Response
1 Whether the company has clear The company has taken a land (situated at EL 30, J
title/lease deeds for freehold and block, Bhosari Industrial Area admeasuring 13,680
leasehold land respectively? If not sq meters) on lease for a period of 95 years with
please state the area of freehold and renewable option of further 95 years from
leasehold land for which title/lease Maharashtra Industrial Development Corporation
deeds are not available. on 25.11.1991. This fact is disclosed in Note 1 to the
standalone Ind AS financial statements. Further, the
company also confirms that it does not hold any land
other than the mentioned above. Based on this we
state that the company is in possession of the lease
deed for leasehold land.
2 Whether there are any cases of waiver / Based on our review of books of accounts and
write off of debts / loans/interest etc., if management confirmation there are no cases of
yes, the reasons there for and the waiver /write off of debts / loans / interest.
amount involved.
3 Whether proper records are maintained The company follows a particular procedure
for inventories lying with third parties & regarding the records to be maintained for inventory
assets received as gift / grant(s) from lying with the third parties. We have reviewed the
Government or other authorities. procedure and subject to same we are of the opinion
that the company has a proper system in place
which is meticulously followed.
Based on our review of books of accounts and

management confirmation the company has not
received any assets as gifts.

-sd-
CA. Deepak Sugandhi
Partner
Pune
July 26th, 2018
87
88
89
NOTES
NOTES
NOTES

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Annual Report 2017 - 18 BELOP

To be a customer focused technology driven company in the field of Image

1. State Bank of India M/s M.S.D.N. & Associates,

CONTENTS PAGE NO.

TEN YEAR FINANCIAL STATISTICS

Profit after tax (36) 23 45 82 58 50 37 24 48 116

HIGHLIGHTS OF THE YEAR 2017-18

RESEARCH AND DEVELOPMENT

GOVERNANCE AND SUSTAINABILITY

Particulars 2017-2018 2016-2017

Total Income 12,455 13,122

3. Order Book Position

7. Research & Development (R&D)

The R & D team is planning the following activities in future:-

9. MoU with Government

10. Human Resources

11. Industrial Relations

12. Environment Management

16. Integrity Pact

20. Directors’ responsibility statement

21. Significant and material orders

22. Events Subsequent to the Date of Financial Statements

23. Statutory Auditors

24. Secretarial Auditors

25. Auditors’ Report

26. Composition of the Audit Committee

27. Related Party Transactions

28. Loans / Guarantees / Investments

31. Internal Financial Controls

32. Management Discussion and Analysis Report

33. Corporate Governance Report

34. Risk Management

35. Corporate Social Responsibility

36. Sustainability Report

37. Particulars of Employees

39. Other Disclosures

For and on behalf of the Board

Annexure No. 1 to Board’s Report

A) Industry Structure and Developments, Strengths, Weaknesses, Opportunities and Threats

d) Specific Measures on Risk Management, Cost Reduction and Indigenisation

b) Cost Reduction and Indigenisation

B) Internal Control System and it’s adequacy

C) Financial / Operational Performance

Particulars 2017-2018 2016-2017

Gross Sales 12,164 12,388

c. Analysis of Financial performance of 2017-18

D) Development in Human Resources

Annexure No. 2 to the Board’s Report

Meetings and Attendance

Nomination and Remuneration Committee

Corporate Social Responsibility Committee

The composition of the Corporate Social Responsibility Committee is as outlined below:-

The details of the various CSR activities is furnished at Annexure 3.

Other Board Subcommittees

Related Party Transactions

General Body Meetings

Year Location Date & Time

Presidential Directives and Guidelines

Category No. of % Holding