MIRA INFORM REPORT
|
Report
Date : |
30.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
BHARAT ELECTRONICS LIMITED |
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Registered
Office : |
Nagavara, Outer Ring Road, Bangalore – 560 045, Karnataka,
India |
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Country: |
India |
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Financials
as on: |
31.03.2006 |
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Date of
Incorporation : |
21.04.1954 |
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Com.
Reg. No.: |
08-787 |
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CIN
No.: [Company
Identification No.] |
L32309KA1954G0l000787 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
BLRB04051F BLRC00582B |
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PAN
No.: (Permanent
Account No.) |
AAACB5985C |
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Legal
Form : |
Public Limited Liability Company. Company’s shares are
listed on the stock Exchanges. |
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Line
of Business : |
Engaged in manufacturing, importing and exporting of
Radars and Communication Equipments for the defence services communication
including Satcom Systems, Optical & Opto Electronics and
Telecommunications, Broadcast (Radio and TV) for I & B Ministry and
Electronic Components I.E. Semiconductors Electron Tubes and X-Ray Tubes. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
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Maximum
Credit Limit : |
USD
80000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a very old, well established and reputed
company. The company is making steady progress in its turnover and profits.
Its products are well accepted in Indian as well as overseas markets. The
company’s payments are correct and as per commitments. It can be
considered good for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered
Office : |
Nagavara, Outer Ring Road, Bangalore-560045, Karnataka,
India |
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Tel.
No.: |
91-80-25039300/25039266 |
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Fax
No.: |
91-80-25039305/25039233 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
2nd
Floor, Shankaranarayana Building, 25, M. G. Road, Bangalore - 560 001,
Karnataka, India |
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Tel.
No.: |
91-80-2559
5001 / 2559 5017 / 2558 3851 |
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Fax
No.: |
91-80-2558
4911 / 2558 3675 |
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E-Mail
: |
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Factory
1 : |
Jalahalli Post, Bangalore - 560 013, Karnataka, India |
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Tel.
No.: |
91-80-28382626 |
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Fax No.: |
91-80-28380266 |
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Factory
2 : |
Bharat
Nagar Post, Ghaziabad - 201 010, Uttar Pradesh, India |
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Tel.
No.: |
91-120-2619786
/ 2619500 |
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Fax
No.: |
91-120-2776730
/ 2770926 |
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Factory
3 : |
NDA Road,
Pashan, Pune - 411 021, Maharashtra, India |
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Tel.
No.: |
91-20-25881400/01/02 |
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Fax
No.: |
91-20-25880577/5888789 |
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Factory
4 : |
Post Box No. 26, Ravindranath Tagore Road, Machalipatnam -
521 001, Andhra Pradesh, India |
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Tel.
No.: |
91-8672-223581-83 |
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Fax
No.: |
91-8672-222640 |
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Factory
5 : |
Plot No.
405, Industrial Area, Phase III, Panchkula - 134 113, Haryana, India |
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Tel.
No.: |
91-172-2588252
/ 2588400 |
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Fax
No.: |
91-172-2594548
/ 2591463 |
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Factory
6 : |
Balbhadrapur,
Kotdwara - 246 149, Uttaranchal, India |
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Tel.
No.: |
91-1382-231171
/ 231178 |
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Fax
No.: |
91-1382-231132
/ 231112 / 231156 |
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Factory
7 : |
Plot No. L-1, MIDC, Industrial Area, Raigad District,
Taloja - 410 308, Maharashtra, India |
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Tel.
No.: |
91-22-27412701 |
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Fax
No.: |
91-22-27412888
/ 27412887 |
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Factory
8 : |
Post Box
No. 981, Nandambakkam, Chennai – 600 089, Tamil Nadu, India |
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Tel.
No.: |
91-44-22326906 |
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Fax
No.: |
91-44-22326905 |
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Factory
9 : |
Nacharam
Industrial Estate, Hyderabad – 500076, Andhra Pradesh, India |
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Tel.
No.: |
91-40-27150113-17 |
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Fax
No.: |
91-40-27171406 |
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Overseas
Office: |
53-55,
Hilton Avenue, Garden City, New York – 11530, USA |
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Tel.
No.: |
516-248-4020 |
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Fax
No.: |
516-741-5894 / 516-877-7907 |
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Email: |
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Overseas
Office: |
06-01, BSL Industrial Building, 156, MacPherson Road,
Singapore – 348 528 |
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Tel.
No.: |
65-741-8401 |
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Fax
No.: |
65-741-8402 |
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Email:
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DIRECTORS
|
Name : |
Dr. Y Gopal Rao |
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Designation
: |
Chairman and Managing Director |
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Address
: |
“Trade Centre”, 116/2, Race Course Road, Bangalore-560001,
Karnataka, India |
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Name : |
Mr. V V R. Sastry |
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Designation
: |
Director (Marketing) |
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Name : |
Mr. A.K. Datt |
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Designation
: |
Director (Other Units) |
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Name : |
Mr. H.S. Bhadona |
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Designation
: |
Director (Bangalore Complex) |
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Name : |
Mr. P. R. K. Hara Gopal |
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Designation
: |
Director (Finance) |
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Address
: |
“Trade Centre”, 116/2, Race Course Road, Bangalore-560001,
Karnataka, India |
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Name: |
Mr. S. C. Khanna |
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Designation: |
Director (Commercial & Management Services) |
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Address: |
“Trade Centre”, 116/2, Race Course Road, Bangalore-560001,
Karnataka, India |
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Name: |
Dr. M. Rammohan Rao |
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Designation: |
Director |
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Name: |
Mr. S K Mehta |
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Designation: |
Director ( Research & Development) |
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“Trade Centre”, 116/2, Race Course Road, Bangalore-560001,
Karnataka, India |
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Name: |
Mr. Basavarajaiah |
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Designation: |
Director |
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Name: |
Lt. Gen. Davinder Kumar, VSM and Bar |
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Designation: |
Director |
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Name: |
Mr. A. Muralidhar |
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Designation: |
Director (Other Unit) |
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Name: |
Mr. M. L. Shanmukh |
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Designation: |
Director (Personnel) |
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Name: |
Mr. Matcheri S. Sreedhara |
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Designation: |
Chief Regional Manager |
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Date
of Birth/Age : |
56 Years |
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Qualification
: |
B.E. (Mechanical) |
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Experience
: |
32 Years |
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Date
of Appointment : |
2nd March, 1973 |
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Part-time Government Directors |
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Name: |
Mr. Alok Perti |
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Designation: |
Joint Secretary (Shipyards),
Ministry of Defence, Department of Defence Production |
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Name: |
Lt. Gen. Davinder Kumar |
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Designation: |
PVSM, VSM & Bar, ADC, Signal Officer in Chief, Army
Headquarters |
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Independent Directors |
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Name: |
Dr. V Bakthavatsalam |
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Designation: |
Former MD, Indian Renewable Energy
Development Agency |
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Name: |
Prof. N. Balakrishnan |
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Designation: |
Associate Director, Indian
Institute of Science, Bangalore |
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Name: |
Dr. Ashok Jhunjhunwala |
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Designation: |
Professor (Electrical Engg.), NT,
Chennai |
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Name: |
Prof. Goverdhan Mehta |
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Designation: |
CSIR Bhatnagar Fellow, Indian
Institute of Science, Bangalore |
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Name: |
Dr. S.R Parashar |
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Designation: |
Director, Indian Institute of
Management, Indore |
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Name: |
Mr. K.G. Ramachandran |
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Designation: |
Director, Infosys Leadership
Institute, Mysore |
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Name: |
Dr. M. Rammohan Rao |
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Designation: |
Dean, Indian School of Business,
Hyderabad |
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Name: |
Prof. S. Sadagopan |
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Designation: |
Director, International Institute
of Information Technology, Bangalore |
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Name: |
Mr. Bhupindar Singh |
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Designation: |
Former CMD, State Trading
Corporation of India |
KEY EXECUTIVES
|
Name: |
Mr. CM. Bhat, IPS |
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Designation: |
Chief Vigilance Officer |
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Principal Executives : |
Chennai |
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Mr. Anil Kumar |
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Ghaziabad |
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Mr. N.K. Sharma |
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Mr. Chandra Prakash |
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Hyderabad |
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Mr. I.V Sarma |
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Kotdwara |
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Mr. Ramesh Kumar Marhatha |
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Machilipacnam |
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Mr. V Sundararaman |
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Navi Mumbai |
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Mr. M.V Narayanan |
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Panchkuta |
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Mr. Anand Kumar |
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Pune |
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Cdr. S. Roy Choudhury (Retd.) |
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CRL, Bangalore |
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Dr. AjitT. Kalghatgi, Chief
Scientist |
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CRL, Delhi |
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Mr. K.C. Pandita, Chief Scientist |
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General Managers : |
Mr. R.RS. Gahlaut |
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Mr. D. Krishna Gopal |
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Mr. G.D. Gupta |
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Mrs. Elaine Mathias |
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Mr. K. Prakash |
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Mr. VS. Radhakrishnan |
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Mr. M.G. Raghuveer |
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Mr. M. Mallaraj Urs |
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Name: |
Mr. C.R. Prakash |
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Designation: |
Company Secretary |
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UNITS |
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General Managers |
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Bangalore |
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Mr. G.S. Dayakar |
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Mr. D.A. Mohan |
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Mr. A.A. Mohan Ram |
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Mr. V Muthuswamy |
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Mr. K.L. Rajaram |
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Mr. H.N. Ramakrishna |
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Mr. RR.K.L.N. Sastry |
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Mr. H.S. Satyanarayana |
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Mr. M.S. Sreedhara |
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Mr. U. Vishnumurthy |
MAJOR SHAREHOLDERS
Particulars |
No. of shares |
% of shareholding |
|
Indian
Promoters |
60,689,600 |
75.86 % |
|
Mutual
Funds and UTI |
4,269,539 |
5.34 % |
|
Financial
Institutions |
44,518 |
0.06 % |
|
Insurance
Companies |
1,652,477 |
2.07 % |
|
Foreign
Institutional Investors |
9,279,829 |
11.60 % |
|
Private
Corporate Bodies |
1,885,797 |
2.36 % |
|
Individuals
|
2,178,240 |
2.71 % |
|
Total |
80,000,000 |
100.00 % |
BUSINESS DETAILS
|
Line
of Business : |
Engaged in manufacturing, importing and exporting of
Radars and Communication Equipments for the defence services communication
including Satcom Systems, Optical & Opto Electronics and
Telecommunications, Broadcast (Radio and TV) for I & B Ministry and
Electronic Components I.E. Semiconductors Electron Tubes and X-Ray Tubes. |
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Products
: |
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Imports
from : |
France,
Germany, Japan, Netherlands, Singapore, Sweden, Switzerland, UK and USA. |
GENERAL INFORMATION
|
No. of
Employees : |
12262 |
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Bankers
: |
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Facilities : |
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Banking Relations : |
Good |
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Auditors
: |
STATUTORY AUDITORS
Chartered Accountants BRANCH AUDITORS
Chartered Accountants
Chartered Accountants
Chartered Accountants |
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Associates/Subsidiaries
: |
This company is a subsidiary
company of the subject for conducting research, development and manufacture
of Image Intensifier Tubes and associated high voltage power supply units for
use in military, security and commercial systems. 1440 I series, GEN II, 18 mm
Microchannel Wafer Image Intensifiers are high gain, minimum volume, proximity
focussed devices, designed to produce high resolution, intensified images.
These devices are used in applications where ambient illumination levels are
low and auxiliary lighting is
inadvisable or not available. Its applications are :- Night vision goggles and
binoculars Night vision weapon sights Low light level input applications |
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Memberships : |
Confederation
of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 1000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
80,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 800.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
800.000 |
800.000 |
800.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
19493.111 |
15000.755 |
11558.164 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
20293.111 |
15800.755 |
12358.164 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
15.081 |
5.987 |
6.752 |
|
|
2]
Unsecured Loans |
72.985 |
147.070 |
322.740 |
|
TOTAL
BORROWING
|
88.066 |
153.057 |
329.492 |
|
|
DEFERRED
TAX LIABILITIES |
131.453 |
132.424 |
127.884 |
|
|
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|
|
|
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TOTAL
|
20512.630 |
16086.236 |
12815.540 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
3703.806 |
3193.393 |
2879.784 |
|
Capital work-in-progress
|
211.473 |
473.585 |
337.046 |
|
|
|
|
|
|
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INVESTMENT
|
122.801 |
122.801 |
122.801 |
|
DEFERREX TAX ASSETS
|
1274.338 |
1169.647 |
913.334 |
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
10371.376 |
10649.567 |
10152.879 |
|
|
Sundry Debtors
|
10176.876 |
6991.177 |
6675.412 |
|
|
Cash & Bank Balances
|
18314.091 |
13158.673 |
14345.157 |
|
|
Loans & Advances
|
7542.844 |
7419.872 |
5516.737 |
Total Current Assets
|
46405.187 |
38219.289 |
36690.185 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
22534.202 |
20116.341 |
24172.001 |
|
|
Provisions
|
8693.111 |
7013.195 |
4022.963 |
Total Current Liabilities
|
31227.313 |
27129.536 |
28194.964 |
|
Net
Current Assets
|
15177.874 |
11089.753 |
8495.221 |
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES
|
22.338 |
37.057 |
67.354 |
|
|
|
|
|
|
|
TOTAL
|
20512.630 |
16086.236 |
12815.540 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
35292.076 |
33304.900 |
28408.151 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
8552.567 |
6859.607 |
4690.159 |
Provision for Taxation
|
2722.485 |
2396.362 |
1529.177 |
Profit/(Loss) After Tax
|
5830.082 |
4463.245 |
3160.982 |
|
|
|
|
|
Export Value
|
NA |
562.500 |
284.621 |
|
|
|
|
|
Total Expenditure
|
26739.509 |
26140.528 |
23142.498 |
QUARTERLY
|
Particulars |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Quarter
|
2nd Quarter
|
3rd Quarter
|
|
Sales Turnover |
4831.400 |
8342.800 |
8637.900 |
|
Other Income |
383.700 |
508.400 |
407.200 |
|
Total Income |
5215.100 |
8851.200 |
9045.100 |
|
Total Expenditure |
4110.300 |
6477.400 |
6661.500 |
|
Operating Profit |
1104.800 |
2373.800 |
2383.600 |
|
Interest |
02.500 |
00.700 |
01.500 |
|
Gross Profit |
1102.300 |
2373.100 |
2382.100 |
|
Depreciation |
208.300 |
198.200 |
204.700 |
|
Tax |
291.300 |
692.000 |
695.600 |
|
Reported PAT |
602.700 |
1482.900 |
1481.800 |
Notes
200606
Quarter 1 –
Expenditure Includes (Increase) / Decrease in
Stock in Trade & WIP Rs (197.40) million Consumption of Raw Materials Rs
2736.80 million Staff Cost Rs 1114.10 million Other Expenditure Rs 456.80
million EPS is Basic & Diluted Status of Investor Complaints for the
quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter Nil Complaints disposed off during
the quarter Nil Complaints unresolved at the end of the quarter Nil 1. Company
has obtained exemption from SEBI regarding Segment Reporting. 2. The quarterly
results of Subsidiary Company viz, BEL Optronic Devices Limited and Joint
Venture Companies viz. GE BE Private Limited and BEL Multitone Limited are not
included above. 3. Sales and Production are expected to pick up in the subsequent
quarters, considering the orders on hand / expected executable orders during
the remaining period of the year. 4. The Company has adopted the revised
Accounting Standard 15 (AS-15) on Employee Benefits w.e.f. April 01, 2006. As
per the Standard, an amount of Rs 76.40 million (additional Obligation as on
April 01, 2006, net of Deferred Tax Asset) has been adjusted against General
Reserve. 5. The Board of Directors at their meeting held on June 30, 2006 has
recommended a final dividend of 106% (Rs 10.6 per share of Rs 10) for the year
2005-06 in addition to an interim Dividend of 40% paid in November 2005. 6. The
Limited Review as required under clause 41 of Listing agreement has been
completed by the Statutory Auditors. 7. The above statement of financial
results was reviewed by Audit Committee and approved by the Board of Directors
at the meeting held on July 31, 2006.
200609
Quarter 2 –
Expenditure Includes (Increase) / Decrease in
Stock in Trade & WIP Rs (1039.60) million Consumption of Raw Materials Rs
5617.90 million Staff Cost Rs 1163.20 million Other Expenditure Rs 735.90
million EPS is Basic & Diluted Tax Includes Provision for Taxation
(Including Deferred tax & FBT) Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 02 Complaints disposed off
during the quarter 02 Complaints unresolved at the end of the quarter Nil 1.
Company has obtained exemption from SEBI regarding Segment Reporting. 2. The
half yearly results of Subsidiary Company, viz. BEL Optronic Devices Limited
and Joint Venture Companies viz- GE BE Private Limited and BEL Multitone
Limited are not included above. 3. Sales and production are expected to improve
further in the subsequent quarters, considering the orders on hand / expected
executable orders during the remaining period of the year. 4. The Company has
adopted the revised Accounting Standard 15 (AS-15) on Employee Benefits w.e.f.
April 01, 2006. As per the Standard, an amount of Rs 76.40 million (additional
obligation as on April 01, 2006, net of Deferred Tax Asset) has been adjusted
against General Reserve. 5. The Limited Review as required under clause 41 of
Listing agreement has been completed by the Statutory Auditors. 6. The above
statement of financial results was reviewed by the Audit Committee and approved
by the Board of Directors at the meeting held on October 27, 2006.
200612
Quarter 3 –
Expenditure Includes (Increase) / Decrease in
Stock in Trade & WIP Rs (210.80) million Consumption of Raw Materials Rs
4791.10 million Staff Cost Rs 1109.00 million Other Expenditure Rs 972.20
million Provision for Taxation (Including deferred tax and FBT) EPS is Basic
& Diluted Status of Investor Complaints for the quarter ended December 31,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 16 Complaints disposed off during the quarter 16 Complaints
unresolved at the end of the quarter Nil Previous/ current period figures have
been regrouped wherever necessary. 1. Company has obtained exemption from SEBI
regarding Segment Reporting. 2. The quarterly results of Subsidiary Company,
viz. BEL Optronic Devices Limited and Joint Venture Companies viz. GE BE
Private Limited and BEL Multitone Limited are not included above. 3. Sales and
production are expected to improve further in the next quarter, considering the
orders on hand / expected executable orders during the remaining period of the
year. 4. The Company has adopted the revised Accounting Standard 15 (AS-15) on
Employee Benefits w.e.f. April 01, 2006. As per the Standard, an amount of Rs
76.40 million (additional obligation as on April 01, 2006, net of Deferred Tax
Asset) has been adjusted against General Reserve. 5. The Limited Review as
required under clause 41 of listing agreement has been completed by the
Statutory Auditors. 6. Interim Dividend @ Rs 4 per share has been declared by
the Board at the meeting held on January 23, 2007. 7. The above statement of
financial results was reviewed by the Audit Committee and approved by the Board
of Directors at the meeting held on January 23, 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.01 |
0.02 |
0.03 |
|
Long Term Debt Equity Ratio |
0.01 |
0.02 |
0.03 |
|
Current Ratio |
1.48 |
1.38 |
1.33 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.98 |
2.96 |
2.82 |
|
Inventory |
3.19 |
2.95 |
2.74 |
|
Debtors |
4.12 |
4.70 |
4.06 |
|
Interest Cover Ratio |
30.15 |
60.29 |
64.21 |
|
Operating Profit Margin (%) |
27.27 |
23.94 |
19.25 |
|
Profit Before Interest and Tax Margin (%) |
25.02 |
21.72 |
17.02 |
|
Cash Profit Margin (%) |
18.74 |
16.12 |
13.52 |
|
Adjusted Net Profit Margin (%) |
16.49 |
13.90 |
11.29 |
|
Return on Capital Employed (%) |
48.42 |
48.44 |
41.39 |
|
Return on Net Worth (%) |
32.07 |
31.41 |
27.85 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.1409.70/- |
|
Low |
Rs.1340.00/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject was established to meet the Defence needs of the
Government of India. Since then, it has
grown to a multi-product, multi-unit and technology driven company.
Subject is a
public sector giant and one of the largest manufacturers of radars, wireless
communication systems and other technical equipments for the defence forces in
the country. Until recently, the
company’s performance was under strain due to the post-Pokhran nuclear blast
sanctions by the USA. However, post
Kargil, the government has realised the need to increase its focus on acquiring
strategic technical equipment for defence forces which had dramatically changed
the fortunes of the company.
Subject was incorporated
at Bangalore and wholly owned by the Government of India, till disinvestment
took place in 1991-92.
In 1989-90,
the company diversified into consumer and entertainment electronics and
telecommunications. In 1991-92, it
entered into a joint venture with Delft Instruments, Holland, under the name
BE-Delft Electronics to manufacture second generation image intensifier tubes
at Pune. Another joint venture was
formed with the HMT and the Karnataka Government to manufacture quartz watch
crystals. In addition to the Defence
department, Department of Telecommunications, Doordarshan and Videsh Sanchar
Nigam are the major clients of the company.
During
2001-02, the company became the first Defence Public Sector Enterprise to
acquire operational Mini Ratna Category – I Status. The company has also been awarded Satellite Network contract by
Andhra Pradesh Beverages Corporation Limited.
The main application is for consolidating the sales transactions on-line
by 31 remote centres with APBCL HQ at Hyderabad. These projects were being executed under B-O-O-T model.
Significant landmark
|
Year |
Achievements
|
|
1954 |
Incorporation |
|
1956 |
Production of First Communication Equipment |
|
1961 |
Production of Receiving Value |
|
1963 |
In-house
R and D established |
|
1964 |
Manufacture
of Radio Transmitter for All India Radio |
|
1966 |
Military
Radar Manufacturing |
|
1967 |
Manufacture
of Transmitting, Tubes, Silicon, Devices and Integrated Circuits |
|
1972 |
TV
Transmitters for Doordarshan |
|
1974 |
Second
Unit at Ghaziabad for Air Defence Ground Environment Systems |
|
1976 |
First SFM
Radar exported |
|
1979 |
Third
Unit set up at Pune |
|
1980 |
First
Overseas office at New York |
Business:
The company is engaged in manufacturing, importing and
exporting of radars and communication equipments for the defence services
communication including satcom systems, optical & opto electronics and
telecommunications, broadcast (radio and TV) for I & B ministry and
electronic components i.e. semiconductors electron tubes and X-ray tubes.
It also offers services such as contract manufacturing,
telecom consultancy and semiconductor device packaging.
The company meets the bulk of electronic equipment needs of
Indian Defence Services, Parliamentary Forces and other Government users like
All India Radio, Doordarshan, Department of Telecommunication, Police Wireless,
Airport Authority of India, Meteorological Department, Railways, etc. It has a very wide product range and makes
over 350 different products.
The company is also taking export promotional efforts like appointment
of overseas agents, participation in foreign exhibitions, etc. The company has 9 operating units.
The company is
setting up a subsidiary in the IT sector and is in the process of arranging
venture capital and is also forging venture capital alliances.
It also
introduced new and upgraded products based on in-house technology. Many of the products like decoy radars,
upgraded air defence weapon control radars, coastal surveillance systems, lower
power transmitters, telemedicine systems, PC motherboard-based chipsets, etc.
have been inducted into services or are under final stages of evaluation by
various customer groups.
Generic
Names of the Principal Products of the company are:
|
Item
Code No. |
Product
Description |
|
85261000 |
Radar |
|
85252000 |
Communication Transmitters cum Receivers |
|
90058090 |
Hand Held Thermal Magers |
The list of
products and services being exported to several countries is given below:
|
Products |
Countries |
|
Defence
Communication |
Algeria,
Botswana, Brazil, France, Germany, Malaysia, Mauritius, Russia, Sweden,
Switzerland and UK |
|
Civilian
Communication |
Brazil,
Iran, Italy, Kenya, Malaysia, Netherlands, Philippines, Germany, South Korea,
Singapore, Spain, Taiwan, Turkey, UAE, UK and USA |
|
Electron
Tubes, Magnetrons, Transmitting Tubes, TV Picture Tubes and parts |
Algeria,
Armenia, Bangladesh, Brazil Egypt, France, Greece, Hong Kong, Italy, Nepal,
UK, USA and Zambia |
|
Otpo
Electronic Products and parts |
Australia,
Egypt, France, Germany, Israel, Malaysia, Netherlands, New Zealand, Saudi Arabia,
Singapore, UAE, UK and USA |
|
Sound and
Vision Broadcast Equipments |
Vietnam,
Brazil and Middle East |
|
Radar and
Sub-systems |
Switzerland
and Ukraine |
|
Contract
Manufacturing |
USA,
Australia, Japan, Brazil and Canada |
|
Batteries,
Energy Saver and other products |
Australia,
Bahrain, Kuwait, Mauritius, Nepal, Oman, Philippines, Saudi Arabia, UAE and
USA |
Vision,
mission, values and objectives
The existing Mission and Objectives of the Company were formulated almost a
decade ago. Since then, the global scenario and the business environment in the
country have undergone significant changes. A need was felt to revisit the
Mission and Objectives of the Company and reframe these in line with the
current realities. It was also felt necessary to spell out the Company's Vision
so that along-term direction for future growth of the Company comes into focus.
In this background the Company has formulated the Vision, Mission, Values and
Objectives afresh as stated in the beginning of the Annual Report.
Finance
As a result of the continuous efforts the Company was able to achieve reduction
in total inventory in number of days of production from 120 days as on
31-3-2005 to 110 days as on 31-03-2006. In the case of receivables there has
been an increase in the level of Debtors from 79 days sales as on 31st March,
2005 to 105 days sales as on 31st March, 2006. This increase is mainly due to
the late receipt of the orders/ clearances resulted in higher value of sales at
the year end against which no advances / progressive payment could be received,
sale of products where the payment terms are not the standard payment terms of
Defence, etc, Efforts are continuing for the prompt collection of dues and to
bring down the level of sundry debtors. During the financial year 2005-06,
there was a substantial reduction in interest on Public Deposits from Rs.22.23
million in 2004-05 to Rs.7.70 million in 2005-06 and also on cash credit from
Rs. 1.67 million in 2004-05 to Rs.0.008 million in 2005-06. However, the total
interest expenditure during 2005-06 was Rs.268.29 million (Rs.90.62 million in
2004-05) because of provision of Rs.240.60 million towards likely liability of
interest on adhoc advance received. During the year 2001-02 an adhoc advance
was paid to the Company on Letter of Intent without any stipulation of interest
payment whereas the final contract was received in the year 2005-06, having a
stipulation that the adhoc advance paid including interest in accordance with
the Ministry of Defence norms will be adjusted from the initial advance payable
on the final contract value. Public deposits with the Company came down from
Rs. 147.1 million as on 31.03.2005 to Rs. 72.9 million as on 31.03.2006. Rs.
4.9 million of deposits that had matured but has not been claimed as on 31st March
2006 has been included under current liabilities. Out of this, an amount of
Rs.0.03 million was subsequently paid upto 31.07.2006.
Exports
The Company achieved an export turnover of US$ 13.70 million during 2005-06, an
increase of 9% against export of US$ 12.50 million in the previous year.
Contract manufacturing operations related to parts supplied to GE Medical
Systems, USA and Satellite Radios manufactured on 'build to print' basis and
delivered to ETON Corporation, USA formed substantial part of this turnover.
Export of Satellite Communication equipment to Nigeria, HF Radios to Suriname
and export of components including Vacuum Interrupter Tubes and Magnetrons to
various countries formed the remaining part.
The Company has planned to achieve an export turnover of US$ 24.8 million
during 2006-07. Marketing initiatives like product demonstration, participation
in exhibitions abroad, customization of products / systems meeting specific
customer requirements, etc. are being pursued vigorously.
Subsidiary/joint ventures
The Company's subsidiary, BEL Optronic Devices Limited (BELOP) at Pune
continued to perform well. BELOP recorded a turnover of Rs. 516.55 million as
against the turnover of Rs. 433.33 million in the previous year, an increase of
19.20%. The Profit After Tax rose by 31.15% from Rs. 45.78million in the
previous year to Rs. 60.05 million during the year. With good order book
position, BELOP is expected to perform well in the year 2006-07.
In accordance with Section 212(8) of the Companies Act 1956, (the Act), the
Company has obtained exemption from the Government from attaching the Balance
Sheet, Profit & Loss Account, Auditors Report, Directors' Report, etc., of
the subsidiary company to the Balance Sheet of BEL. Hence, Annual Accounts of
the subsidiary company, BEL Optronic Devices Limited, are not attached to the
Balance Sheet of the Company. The Company will make available copy of the
Annual Accounts of the subsidiary company and the related information upon
request by any member of the Company or its subsidiary company. The Annual
Accounts of the subsidiary company are kept for inspection by any investor at
the registered office of the Company and the subsidiary company and any
investor interested to inspect the same may please contact the Company
Secretary of the Company or its subsidiary. A statement as per Section 212 of
the Act relating to the subsidiary company is annexed to this report. Further,
the information required to be disclosed as per the directions while granting exemption
under Section 212(8) of the Companies Act, 1956 is annexed to this
Report.
The Joint Venture Company with General Electric, USA, viz. GE BE (P) Limited
achieved a turnover of Rs. 4157.6 million as against Rs. 4690.6 million in the
previous year. The Profit After Tax was Rs. 348.97 million as against Rs.
297.30 million in the previous year. The JVC paid 100% dividend for the year
2005-06 and the company received Rs. 26 million as dividend on its 26%
investment in this JVC.
The other joint Venture Company, BEL Multitone Limited, jointly promoted with
M/s. Multitone plc, UK has achieved a turnover of Rs. 14.49 million during the
year as against Rs.8.33 million in the previous year. The Profit After Tax
recorded was Rs. 3.3 million as against Rs. 0.81 million in the previous year.
The main objective of this JVC was to supply, install and service Private
Paging Systems and Pagers from M/s. Multitone plc, UK. With paging systems no
longer in demand and being phased out, there has not been much scope of
business for this JVC. Hence, the Directors have decided that this JVC be
closed down and accordingly the matter is taken up with Multitone to initiate
necessary steps for winding up of the JVC.
The list of
products and services with some of its major customers are as under :-
|
Products and Services |
Customers |
|
Defence Communication |
Indian Defence Services,
Para-military forces |
|
Radars and Sonars |
Indian Defence Services, Civil
Aviation, Meteorological Department, Space Department. |
|
Telecommunication |
Department of Telecommunication,
Para-Military Forces, Powers Sector, Oil Industry, Railways. |
|
Broadcasting Equipments and Studio
Systems |
All India. Radio, Doordarshan
(National Radio and TV Broadcasters) |
|
Electronic Voting Machine |
Election Commission of India |
|
Solar Products and Systems |
Individuals, Private and Government
Organisations. |
|
Turnkey Systems, E-Governance
Networks |
Police, State Governments, Public
Sector Undertakings. |
|
Components |
All India Radio and Doordarshan the
National Radio and TV Broadcasters, Instrumentation Industry, Switching
Industry, Entertainment Industry, Telephone Industry. |
The company is in trade terms with the
following :
- Agis
Industries
- Allied
Electronic Corporation
- Arien
Inc.
- Balhara
Industrial Corporation
- Borate
Plastic
- Carter
Hydraulic Powers Private Limited
- Dass
Electronics
- Gilard
Electronics Private Limited
- Kadevi
Engineering Company Private Limited
- MACR
Precision Components
- Mahip
Iron Company
- MCE
Products Sales Services Private Limited
- Microfine
Bushing Private Limited
- Rajshi
Processors
- Shashi
Packing Products
- Southern
Machine Tools
- Spare Age
Auto Industries
- Unique
Punch Systems Private Limited
- Victory
Heat Treaters
- Yoshma
and Company Private Limited
- Unisys
The company has been accredited with
ISO 9000 and ISO 9002 Certifications.
The company's fixed assets of
important value include freehold land, leasehold land, roads and culverts,
buildings, installations, plant & machinery, electronic equipment,
equipment for R & D Lab, Vehicles, office equipment and furniture, fixtures
& other equipment.
February, 2007
Mr V V R Sastry (57) has taken over as the
Chairman and Managing Director of premier Defence Public Sector Undertaking
Bharat Electronics Limited (BEL), with effect from February 1, 2007. He
succeeds Mr Y Gopala Rao, who retired on superannuation on January 31, 2007.
Mr V V R Sastry was Director (Marketing) of BEL
before his elevation as CMD. During his tenure as Director (Marketing) he took
initiatives to bring in marketing orientation to the organization and gave a
strong thrust to exports.
After graduating with two degrees - in Science
and Engineering (Electronics & Communication) from Andhra University, he
joined BEL-Bangalore in 1969 as Probationary Engineer. He has 38 years of
experience in diverse areas such as development and engineering, manufacturing,
project management, technology management and marketing.
Mr Sastry has rich experience in various fields
of defence electronics like military communication, electronic warfare and
strategic components.
He has widely travelled abroad. He has worked
for 13 months in the Development Laboratories of Philips (Mullard), UK, on
electronic circuit design and development of microprocessor based electrical
appliances.
He also headed BEL’s New York office for 3
years, during which he had extensive interactions with the US Department of
Commerce & State.
He is a Senior Assessor for the CII-EXIM Bank
Business Excellence Model. Mr Sastry is on the Board of BEL Optronic Devices
Limited, a wholly owned subsidiary of BEL. He has keen interest in classical
music, gardening and spiritual pursuits.
January, 2007
BEL to showcase exportable products, contract manufacturing
capabilities
Premier Defence PSU Bharat Electronics Limited
(BEL) is constantly innovating to manufacture state-of-the-art professional
electronic equipment and components for the international market. BEL
manufactures a wide range of Military Communication Systems, Radars and Sonars,
Naval Systems, Telecom & Broadcast Systems, Electronic Warfare Systems,
Tank Electronics, Opto Electronics, Professional Electronic Components and
Solar Powered Systems.
At Aero India 2007, BEL will be displaying
products and equipment from its wide range which have very good export
potential. They include Communication equipment, Command and Control Systems,
Radars and Sonars, Opto Electronics and Thermal Imaging products, Electronic
Warfare Systems, Tank Electronics, Simulators and Avionic Systems.
BEL will also showcase its capabilities to offer
both ‘Build to Print’ and ‘Build to Spec’ solutions for foreign manufacturers
seeking Indian partners to meet their offset requirements. Some of BEL’s
facilities like electronic and mechanical assembly, vacuum brazing and dip
brazing will be highlighted.
The Communication equipment on display will
include UHF and VHF Hand Held Transreceivers; Secure Tactical Radio in VHF band
- STARS V Mark II; VHF and UHF Base Stations; Digital Radio Trunking System,
Secure Telephone and Secure Fax; CDMA and SATCOM Systems; S-Band Mobile Radio;
Encryption equipment; Unit Level Switch Board (ULSB) Mk II and Mk III –
portable telephone Switch Boards for field use at battalion level;
Semi-Ruggedised Automatic Exchange, SRAX Mk II; Ruggedised Data Terminal; ATM
Switch; and Tactical Communication System.
The Command and Control Systems on display will
include Artillery Combat Command Control System (ACCCS), Battlefield
Surveillance System (BSS), Battlefield Management System (BMS), Integrated Air
Command Control System (IACCS), Composite Communication System, Intelligent
Message Terminal and Ruggedised Simputer.
BEL’s Radars and Sonars on display will include
Battle Field Surveillance Radar – Short Range; Target Designator Sight,
Transducer – Sonar, IFF Mk XI (CLIFF), Surveillance Radar Element, Schilka
Upgrade, Navigational Radar and Electro Optical Director. Models of 3D Medium
Range Radar, Battery Level Radar, Reporter Radar, Weapon Locating Radar,
Flycatcher Radar and INDRA II Radar will also be exhibited.
Opto Electronics and Thermal Imager Products on
display will be Night Vision Binoculars; Night Vision Goggles; Night Weapon
Sights; Hand Held Thermal Imager; Hand Held Thermal Imager – Uncooled;
Integrated Observation Equipment (IOE) – an imaging system for observation and
fire monitoring by Artillery, it consists of a Thermal Imager, Laser Range Finder
mounted on a Goniometer with North Finding Facility and a Global Positioning
System; Laser Range Finder - Air Defence; Laser Range Finder – Hand Held Eye
Safe; Laser Range Finder – Binocular Eye Safe; Gap Measuring Device Mk II;
Laser Designator cum Range Finder for Mortar Fire Control; Video Communication
System with Image Compresseion and Image Intensifier Tubes Gen 2+.
Tank Electronics systems on display will be
Advanced Land Navigation System; Combat Net Radio; Tank Intercom System R-174
Mk II; Digital Universal Control Harness; Indigenous Gunner’s Main Sight and
Driver’s Night Periscope. The L-70 and Zu-23 Gun Upgrades will also be shown.
A few of BEL’s Electronic Warfare Systems will
also be on display including Cellphone Jammer and Sanket.
Avionic Systems on display will be Head Up
Display, Radar Warning Receiver and Airborne Electronic Warfare Systems.
Simulators on display will be Mortar Simulator,
Anti Tank Guided Missile Simulator, BMP II Driving Simulator and Forward
Observation Simulator.
BEL will also show some of its non-defence
products like Batteries, Simputer, Electronic Voting Machines, Direct To Home
Set Top Box, ADSL Modem, MEMS, Microwave Tubes, Smart Card-based Access System,
Intermediate Data Rate and Super Components.
In addition to an indoor display in Hall D, BEL
will also have an outdoor display of some of its larger products. These will
include the Upgraded Flycatcher Radar – an all weather anti-aircraft weapon
control system; Battle Field Surveillance Radar – Short Range with Thermal
Imager; 2-Axis Stabilised Optronic Pedestal to work in association with Guns to
make them operate in autonomous mode; Low Probability of Intercept Radar, which
is mounted on a wheeled vehicle; Radar SV 2000; Weapon Locating Radar; Battery
Level Radar and Aluminium Skin Shelter with NBC Power Source and Antenna Mast.
For the first time, BEL will be selling some of
its products like the Solar Lantern, Set Top Box for Free To Air Channels and
Memory Stick at its outdoor display area at Aero India 2007. A special discount
of 10 per cent is being offered on the products.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of Anti-Corruption
Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.17 |
|
UK Pound |
1 |
Rs.86.66 |
|
Euro |
1 |
Rs.57.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |