MIRA
INFORM REPORT
|
Report Date : |
17.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BHARAT
ELECTRONICS LIMITED |
|
|
|
|
Registered Office : |
Outer Ring Road, Nagavara,
Bangalore – 560 045, Karnataka |
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|
Country : |
India |
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|
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|
Financials (as on) : |
31.03.2008 |
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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.] |
L32309KA1954GOl000787 |
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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 |
|
|
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 |
|
Maximum Credit Limit : |
USD 160000000 |
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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
|
Registered
Office : |
Nagavara, Outer
Ring Road, Bangalore-560045, Karnataka, India |
|
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 |
|
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 : |
Jalahalli Post,
Bangalore - 560 013, Karnataka, India |
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Tel. No.: |
91-80-28382626 /
22195621 / 22195683 |
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Fax No.: |
91-80-28380266 |
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Factory : |
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 : |
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 : |
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 : |
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 : |
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 : |
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 : |
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 : |
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: |
DIRECTORS
|
Name : |
Mr. V V R. Sastry |
|
Designation : |
Chairman and
Managing Director |
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|
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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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|
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|
Name: |
Mr. S K Mehta |
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Designation: |
Director (
Research & Development) |
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Address : |
“Trade Centre”, 116/2,
Race Course Road, Bangalore-560001, Karnataka, India |
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|
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|
Name: |
Mr. M. L.
Shanmukh |
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Designation: |
Director (Human
Resources) |
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Name : |
Mr. A.K. Datt |
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Designation : |
Director |
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Name : |
Mr. H.S. Bhadona |
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Designation : |
Director (Bangalore Complex) |
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Name : |
Mr. N.K. Sharma |
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Designation : |
Director (Marketing) |
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Name : |
Mr. I V Sharma |
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Designation : |
Director
(Research and Development) |
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|
Name : |
Mr. Ashwini Kumar
Datt |
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Designation : |
Director |
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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 and
Bar, ADC, Signal Officer in Chief, Army Headquarters |
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Part - Time Directors |
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Name: |
Mr. Gyanesh Kumar |
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Designation: |
Director |
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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.P 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 |
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Name: |
Mr. P Mohapatra |
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Designation: |
Director |
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Permanent Special Invitees to all the Board
meetings : |
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Name: |
Air Marshal B.N. Gokhale, |
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Designation: |
PVSM, VM, Vice Chief of Air Staff, Indian Air Force |
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Name: |
Vice Admiral D.S.P. Varma, |
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Designation: |
PVSM, AVSM, VSM, Chief of Material, Indian Navy |
KEY EXECUTIVES
|
Name: |
Mr. CM. Bhat, IPS |
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Designation: |
Chief Vigilance Officer |
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Name: |
Mr. C.R. Prakash |
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Designation: |
Company Secretary |
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Principal Executives : |
Chennai |
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|
Mr. Anil Kumar |
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General
Managers |
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|
Ghaziabad |
Mr. Anand Kumar |
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|
Mr. Chander
Prakash |
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|
Mr. Sushil Chand
Jain |
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Hyderabad |
Mr. Sunil Kumar Sharma |
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Kotdwara |
Mr. Ramesh Kumar
Marhatha |
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Machilipacnam |
Mr. Vijay Gundannavar |
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Navi Mumbai |
Mr. M.V
Narayanan |
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Panchkula |
Mr. R.K. Singhal |
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Pune |
Mr. Ramesh Chandra Nautiyal |
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|
CRL, Bangalore |
Dr. AjitT.
Kalghatgi, Chief Scientist |
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|
CRL, Delhi |
Mr. K.C.
Pandita, Chief Scientist |
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|
CRL, Ghaziabad |
Mr. K.C. Pandita - Chief Scientist |
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|
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Bangalore |
Mr. M.G.
Raghuveer |
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|
Mr. D.A. Mohan |
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|
Mr. M.S. Sreedhara |
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|
Mr. A.A. Mohan
Ram |
|
|
Mr. K.L Rajaram |
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|
Mr. H.N.
Ramakrishna |
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|
Mr. H.S.
Satyanarayana |
|
|
Mr. Philip Jacob |
|
|
Mr. Amol
Newaskar |
|
|
Mr. C. Nageshwar
Rao |
|
|
Mr. I.V. Sarma |
|
Profile
: |
Mr I V Sarma has taken charge as Director (RandD) on April 1, 2008. Mr Sarma was till recently the General Manager of the Electronic Warfare and Avionics Strategic Business Unit (SBU) at BEL’s Bangalore complex. Mr Sarma joined BEL in 1975 after completing BE in Electronics and Communications. Mr Sarma also holds an MBA from FMS, Delhi University. In a career spanning 33 years, Mr Sarma has worked in 5 Units and 2 offices of BEL. He has handled diverse functions including Operations, Development and Engineering, Marketing and Business Development (domestic and international), Quality Assurance, and Project Management, at various locations like Ghaziabad, Kotdwara, Bangalore, Navi Mumbai and Hyderabad. In July 2003, Mr Sarma was promoted as General Manager to head the BEL Unit in Navi Mumbai. He was GM of BEL’s Hyderabad Unit, which specialises in Electronic Warfare Systems, from July 2005 to July 2007. Mr Sarma was GM of the EW and A SBU at BEL’s Bangalore Complex from August 2007 till March 2008. Mr Sarma is widely travelled and well read. |
MAJOR SHAREHOLDING
PATTERN
As on 31.03.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian Promoters
(Government of India) |
60689600 |
75.86 |
|
Mutual Funds a
UTI |
5501010 |
6.88 |
|
Banks, Financial
Institutions and Insurance Companies |
1654127 |
2.07 |
|
Foreign
Institutional Investors |
8273721 |
10.34 |
|
Private
Corporate Bodies |
1909849 |
2.38 |
|
NRI's/OCB's |
85825 |
0.11 |
|
Others (Indian public) |
1885868 |
2.36 |
|
GRAND TOTAL |
80000000 |
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
and B Ministry and Electronic Components I.E. Semiconductors Electron Tubes
and X-Ray Tubes. |
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Products : |
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Imports : |
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Countries : |
·
France ·
Germany ·
Japan ·
Netherlands ·
Singapore ·
Sweden ·
Switzerland ·
UK ·
USA. |
GENERAL
INFORMATION
|
No. of Employees : |
12371 |
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Bankers : |
·
State Bank of India ·
State Bank of Hyderabad ·
State Bank of Patiala ·
State Bank of Travancore ·
State Bank of Mysore ·
State Bank of Bikaner and Jaipur ·
HDFC Bank ·
Canara Bank ·
Syndicate Bank ·
Vijaya Bank ·
Bank of Baroda ·
Andhra Bank |
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Facilities : |
|
|
|
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Banking
Relations : |
Good |
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|
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|
Auditors : |
|
|
Name : |
Statutory Auditors
·
Suri and
Company Chartered Accountants Branch Auditors
Chartered Accountants
Chartered Accountants
Chartered Accountants |
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|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
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 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs.10/- each |
Rs.800.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2006 |
||
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
800.000 |
800.000 |
800.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
31531.300 |
24923.123 |
19493.111 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
32331.300 |
25723.123 |
20293.111 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13.800 |
8.805 |
15.081 |
|
|
2] Unsecured
Loans |
0.000 |
8.357 |
72.985 |
|
TOTAL
BORROWING
|
13.800 |
17.162 |
88.066 |
|
|
DEFERRED TAX
LIABILITIES |
0.000 |
198.370 |
131.453 |
|
|
|
|
|
|
|
TOTAL
|
32345.100 |
25938.655 |
20512.630 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4134.900 |
3856.667 |
3703.806 |
|
|
Capital work-in-progress |
337.200 |
336.750 |
211.473 |
|
|
|
|
|
|
|
|
INVESTMENT |
119.800 |
122.801 |
122.801 |
|
|
DEFERREX TAX ASSETS |
0.000 |
1513.203 |
1274.338 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
14234.400 |
12463.533 |
10371.376 |
|
|
Sundry Debtors |
20588.900 |
16934.143 |
10176.876 |
|
|
Cash & Bank Balances |
24534.900 |
20817.283 |
18314.091 |
|
|
Loans & Advances |
16727.200 |
2362.958 |
7542.844 |
|
Total Current Assets |
76085.400 |
52577.917 |
46405.187 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
33345.200 |
28291.605 |
22534.202 |
|
|
Provisions |
14987.000 |
4186.671 |
8693.111 |
|
Total Current Liabilities |
48332.200 |
32478.276 |
31227.313 |
|
|
Net Current Assets |
27753.200 |
20099.641 |
15177.874 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
9.593 |
22.338 |
|
|
|
|
|
|
|
|
TOTAL |
32345.100 |
25938.655 |
20512.630 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
41025.400 |
39527.000
|
35362.800
|
|
|
Other Income |
2605.500 |
1964.400
|
1186.900
|
|
|
Total Income |
43630.900 |
41491.400 |
36549.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
11713.000 |
10524.700
|
8552.600
|
|
|
Provision for Taxation |
3445.600 |
3343.100
|
2722.500
|
|
|
Profit/(Loss) After Tax |
8267.400 |
7181.600
|
5830.100
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
20189.100 |
20960.800
|
18215.000
|
|
|
Excise Duty |
430.400 |
637.000
|
354.700
|
|
|
Stock Adjustments |
(88.200) |
(600.600) |
862.400
|
|
|
Power & Fuel Cost |
320.000 |
327.600
|
326.600
|
|
|
Other Manufacturing Expenses |
1185.900 |
1115.900
|
938.700
|
|
|
Employee Cost |
6481.300 |
5044.200
|
4170.300
|
|
|
Selling and Administration Expenses |
897.700 |
842.300
|
719.500
|
|
|
Miscellaneous Expenses |
1539.100 |
1755.300
|
1339.100
|
|
|
Preoperative Expenditure Capitalised |
(1.000) |
0.000 |
(5.100) |
|
|
Interest & Financial Charges |
37.200 |
42.400
|
281.500
|
|
|
Depreciation |
926.400 |
845.900
|
794.400
|
|
Total Expenditure |
31917.900 |
30970.800 |
27997.100 |
|
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2008 |
|
Type |
|
1st
Quarter |
|
Sales Turnover |
|
3838.700 |
|
Other Income |
|
612.200 |
|
Total Income |
|
4450.900 |
|
Total Expenditure |
|
4164.300 |
|
Operating Profit |
|
286.600 |
|
Interest |
|
0.500 |
|
Gross Profit |
|
286.100 |
|
Depreciation |
|
240.500 |
|
Tax |
|
20.400 |
|
Reported PAT |
|
25.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.01 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.01 |
|
Current Ratio |
1.56 |
1.53 |
1.48 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.98 |
3.08 |
2.98 |
|
Inventory |
2.99 |
3.26 |
3.19 |
|
Debtors |
2.19 |
2.92 |
4.12 |
|
Interest Cover Ratio |
315.87 |
249.22 |
31.38 |
|
Operating Profit Margin(%) |
30.9 |
28.87 |
27.23 |
|
Profit Before Interest And Tax Margin(%) |
28.64 |
26.73 |
24.98 |
|
Cash Profit Margin(%) |
22.41 |
20.31 |
18.73 |
|
Adjusted Net Profit Margin(%) |
20.15 |
18.17 |
16.49 |
|
Return On Capital Employed(%) |
40.33 |
45.53 |
48.35 |
|
Return On Net Worth(%) |
28.38 |
30.99 |
32.07 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
Navratna status Public Sector Unit (PSU) Subject was started
in the year 1954 to meet the defence electronics requirements of the Indian
Armed Forces, starting with a single Unit at Bangalore. Subject is an electronics
company with about nine factories in India. It is owned by the Indian
Government and primarily manufactures advanced electronic products for the
Indian Armed Forces, one of the eight PSUs under Ministry of Defence,
Government of India. Subject has its corporate office at Bangalore and
manufacturing units at nine locations in India, which includes, Bangalore
(Corporate Head Office), Panchkula, Kotdwara, Ghaziabad, Pune, Hyderabad,
Taloja, Machlipatnam and Chennai. In addition to these manufacturing units,
Subject has Regional offices situated in Delhi, Mumbai, Vizag and Kolkata. The
company's liaisoning offices are working at Agra, New York and Singapore.
The initial focus of the company was on valves, Germanium semiconductors and
Radars, which evolved over the 1960s and 1970's to include Transmitting Tubes,
Silicon, Semiconductors, Broadcast equipment, X-Ray Tubes and Defence
electronics. Now, Subject offers products and services in a wide spectrum of
technology like Radars, Military Communications, Naval Systems, Electronic
Warfare Systems, Telecommunications, Sound and Vision Broadcasting,
Opto-Electronics, Tank Electronics, Solar Photovoltaic Systems, Embedded
Software and Electronic Components. With its expertise developed over the
years, the company also provides turnkey systems solutions.
The Company developed a 10KW TV transmitter, system design of the Central
Production Centre at New Delhi for Doordarshan, solid-state FM transmitters and
a new generation of 10KW medium wave transmitters, 120 channels UHF digital
radio relay equipment for the Department of Telecommunications during the year
of 1988. Subject established a Central Research Laboratories (CRLs) at
Bangalore in the year 1989, to carry out futuristic research in cutting-edge technologies.
In the year of 1990, Subject had entered into the Satellite Communication and
simulators segments of business and widened the export base both in terms of
market and products, also introduced indigenously developed automatic test
equipment for the army, ship handling simulators for the Navy, low capacity 40
line electronic exchange for rural applications and high reliability semi
conductor devices for space applications. During 1991-92, Subject entered into
a joint venture with Delft Instruments, Holland, under the name BE-Delft
Electronics to manufacture second-generation image intensifier tubes at Pune.
The Company established a Central Research Laboratories (CRLs) at Ghaziabad in
the year 1992, to carry out futuristic research in cutting-edge technologies.
Subject has signed a MOU with General Electric Company, USA in the year of 1994
for forming a joint venture company for manufacture and supply of X-Ray Tubes.
The Company had set up a joint venture 100% export oriented unit with Oldelft, Netherlands,
for the manufacture of Image Intensifiers. In the same year of 1994, another
joint venture was entered with HMT and KSIIDC for manufacture of watch
crystals.
In the year of 1996, Subject diversified its activities into related areas of
like Energy Saver, Fish Finder, Solar Cells and Systems, and Emergency
Communication Systems for Railways, Contract Manufacturing etc. The Company has
entered into a number of collaboration agreements with leading foreign
companies during the year 1997 for manufacture of State-of-the-art equipment
and products. In the same year of 1997, Subject had signed a joint venture
agreement with Multitone Electronics Plc of UK to set up a joint venture
company under the name of BEL-Multitone Private Limited, which will offer
mobile communication products for the workplace.
The Company bagged a safety award of merit from National Safety Council, USA
through its Ghaziabad unit during the period of 1998. The company has
established a joint venture company with GE for the manufacture of medical
systems and also entered into a strategic alliance with National Semiconductor
Corporation to build motherboards for personal computers around the Media GX
processor. Subject has diversified its operations during the year of 1999 at
the Taloja unit in Maharashtra, which was producing glass shells for black and
White television tubes. In the year 2000, the company had signed a memorandum
of understanding with the aeronautics major Hindustan Aeronautics Limited, to
bring synergy in their core competencies and to complement one another's
capabilities. Subject became a Mini Ratna Category I company in February of the
year 2002. During the year 2002, the first batch of, indigenously produced
invar filters by subject have been handed over to ISRO.
PicoPeta Simputers Private Limited was joined with the company to manufacture
and market a new range of hand-held indigenously developed Simputers. BE-Delft
Electronics has become a subsidiary of the company with effect from 30th July
2002. Further the name of BE-Delft Electronics was changed to BEL Optronic
Devices Limited. Subject became the first PSU to be adjudged 'The Best Company'
for 2002-03 by the Bangalore Stock Exchange. The Company received an order from
Tamil Nadu government in the year of 2003 to supply, install and commission the
2 GHz 120-channel Digital Microwave communication systems on turnkey basis.
PicoPeta Simputers Private Limited and Subject have collectively launched the
Simputer handheld computing device in the year 2004, for the enterprises called
'Amida Alchamy'. In the same year 2004, LandT joined hands with the company to
develop radar for Army and also subject had signed an agreement with Wipro
Infotech for company wide implementation of MySAP Business Suite. During 2004-05
the company has is implementing the Multi-purpose National Identity Card
Project for the Registrar General of India, Ministry of Home Affairs. Further
the company is also implementing the first phase of EDUSAT project, VSAT
communication links from 14 hubs to 800 Satellite Interactive Terminals. In
2005, Subject inked contract with Suriname worth of $1.6million. A year after
in 2007, the company had secured an order for Set Top Boxes.
Subject inaugurated the state-of-the-art, new building of the Central Research
Laboratory of the company at Ghaziabad in June 16th of the year 2007, also
inaugurated the Near Field Antenna Development and Test Centre at subject’s
Ghaziabad Unit. Premier defence PSU subject was formally conferred the Navratna
status at an investiture ceremony held at New Delhi in June 22nd of the year
2007. The company has bagged the IETE Corporate Award in August of the year
2007 for performance excellence in the field of software development. In the
year of 2008, ICRA has assigned an LAAA (pronounced as L triple A) rating to
the Rs 2 billion fund based limit and an A1+ (pronounced as A one plus) rating
to the Rs 10 billion non-fund based limit of the Company. The ratings indicate
the highest credit quality in the long- and short-term.
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 and opto electronics and telecommunications, broadcast (radio and TV)
for I and 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.
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 |
The Company has recorded its highest ever turnover of Rs.41025.4
million during the year 2007-08 as against Rs.39526.9 million in the previous
year. The Value of Production for 2007-08 was Rs.41113.7 million as against
Rs.40127.5 million in the previous year. The Profit After Tax for 2007-08 was
Rs.8267.4 million as against Rs.7181.6 million last year. Value added per
employee for the year was Rs.1.6 million, as against last year's figure of
Rs.1.4 million. Supplies to the Defence Sector constituted 83% of the sales,
balance 17% being supplies to the civilian sector.
All the nine manufacturing Units of the Company have performed well and
achieved profit.
FINANCE
During the financial year 2007-08, the Company had been able to meet both the incremental
working capital requirement and the capital expenditure requirement from the
internal funds generated. As a result, there has been virtually no borrowing
which has been possible through efficient cash management. The Company has
proactively got the sanctioned bank limits rated by ICRA and has been assigned
the highest rating for both short term and long term, which will help in
securing the best rates for any of the services availed from the consortium
banks. During the year, eight more Units of the Company have gone live on SAP
platform and with Corporate Office scheduled to be integrated in the financial
year 2008-09, plans are afoot to take advantage of the synergy and
rationalisation that would be possible with standard practices across all Units.
The inventory position of the Company has increased from 15 days of production
as on 31.3.2007 to 120 days of production as on 31.3.2008. The increase is
mainly in raw materials and components/goods in transit which is required to
cater to the increase in the planned turnover for the financial year 2008-09.
There has been an increase in the level of debtors from 156 days of sales as on
31.3.2007 to 183 days as on 31.3.2008 mainly because of: (a) increased sales at
the year end due to bunching of orders/production cycle time (b) products sold
with payment terms different from the standard defence payment terms, etc. The
debtors realisation will be very closely monitored to ensure speedy collection
and the monitoring mechanism in the Units will be further strengthened to
ensure reduction in debtors in number of days of sales. Public deposits with
the Company came down from Rs.12.24 million on 31.3.2007 to Rs.3.86 million (43
deposits) as on 31.3.2008. Of these, 34 deposits amounting to Rs.3.65 million are
claimed, but not paid as these accounts are frozen on advice by the Karnataka
Lok Ayukta. Remaining 9 deposits amounting to Rs.0.21 million are not claimed
as on 31st March 2008.
PERFORMANCE AGAINST MOU
The Company has been signing a Memorandum of Understanding (MoU)
every year with its Administrative Ministry, Ministry of Defence (MoD). The
performance of the Company against the MoU for 2007-08 is 'Very Good'. The MoU
between subject and the MoD for the year 2008-09 was signed on 27th March,
2008. Sales target set in the MoU for 2008-09 for achieving Very Good'
performance rating is Rs.46500 million, including exports equivalent to US $ 18
million.
ORDER BOOK POSITION:
The order book position of the Company as on 1st April, 2008 was Rs.95860
million, out of which orders worth Rs.37630 million are executable during
2008-09. The balance will get executed in 2009-10 and beyond.
Important Achievements and New Business Initiatives:
Important orders executed by the Company during the year 2007-08 include STARS
V Frequency Hopping, a VHF Manpack Transreceiver; Advanced Land Navigation
System for Tanks, a Command and Control System, Command Information and
Decision Support System, Installation of LINK II System on board Ship, Gunners
Main Sight, EW Systems, Flycatcher Radar, Surveillance Radar Element,
Integrated Observation Equipment, Hand Held Thermal Imagers, Central
Acquisition Radar, Passive Night Vision Device (both monocular and binocular),
and Doppler Weather Radar for prediction of meteorological data. These
equipments have been supplied to a wide range of Customers including the Army,
Navy, Air Force, Paramilitary forces, Indian Meteorological Department and
others.
NEW
PRODUCTS
More than 20 new products were introduced and supplied during the
year. Some of the new products/projects implemented during the year which
deserve special mention are:
Central Acquisition Radar (CAR) - CAR is a medium range 3-D Surveillance Radar,
designed by LRDE and concurrently engineered by BEL. It employs
state-of-the-art planar array antenna and can handle over 150 targets
simultaneously in 'track while scan' mode.
Doppler Weather Radar (DWR) - The S-Band DWR provides long range weather
surveillance with capability of forecasting storms, cyclone and other weather
conditions for meteorological and aviation requirements.
STARS V FH - This is a frequency hopping, software-configurable ECCM radio in
the VHF band. It has in-built data communication features to enable transfer of
any type of files/free text and built-in GPS functionality. This radio is
available in man portable (5 W) and vehicle mounted (25 W) configurations. The
complex encryption algorithms of the radio have been developed in-house.
Artillery Combat Command and Control System - This system has been developed by
subject in association with the DRDO labs-CAIR, Bangalore, and ARDE, Pune. It
is a major sub-system of Tactical Command Control and Communication
Intelligence (TAC C3I) System.
Optronic Pedestal - Stabilised Optronic Pedestal Systems for remote control of
CRN 91 Naval Guns. It is used for detection, recognition and identification of
targets. It has day and night vision capability.
Briefcase Satcom Terminal - The Briefcase Satcom Terminal has been jointly
developed by BEL and DEAL, a DRDO lab, to meet emergency communication needs.
The product is portable, easy to install, can be deployed rapidly and enables
voice and data communication. It is ideal for communication during emergencies,
disaster management, control and relief operations.
Gap Measuring Device (GMD) Mk-II - GMD Mk-II is used to measure the distance
between the banks of a river or canal for laying bridges.
Combat Management System - This is a Command and Control System to connect all
household data in the ship as well as data from the array of radars, fire
control systems and underwater weapon systems on board ship to evolve a
composite tactical picture to facilitate further course of action by the ship
commander. The system consists of an integrated set of computers and displays
to provide separate tactical pictures in multi-dimensional warfare mode - air,
surface, submarine and electronic warfare.
IP Encryptor - It provides secure communication over TCP/IP (Internet)
connectivity with proprietary algorithms.
High Power Communication Jammer - The Communication Jammer operates in HF,
V/UHF and extended UHF range and enables the user to detect and jam analog and
digital communication signals. It consists of two sub-systems - ground based
(HF) and vehicle based (V/UHF and extended UHF). It counters all the new
threats in a dense spectrum environment. It was designed, manufactured, tested
and despatched in a record time of 9 months.
Project Prateeksha - It is a multi-layer, satellite-based road and rail mobile
communication system. It provides voice and data communication between mobile
remotes and a centralised hub.
Optical Tracking System - Optical Tracking System is for observation and
tracking of rockets and satellite launch vehicles. It employs electro-optical
sensors and aids post-flight analysis. It has been supplied to ISRO.
Space Grade Components - Subject has delivered Flight Model Travelling Wave
Tubes (TWTs), which are Space-qualified components used on board Communication
Satellites, to ISRO. The TWTs were designed and developed as part of a joint
project of BEL, Bangalore, ISRO Satellite Centre, Bangalore, and Central
Electronic Engineering Research Institute (CEERI), Pilani. Subject has also
given ISRO an indigenously developed and tested Application Specific Integrated
Circuit (ASIC) called BE03RD Relay Driver, which were used in SRE, HAMSAT and
CartoSAT-2 spacecraft successfully.
NEW BUSINESS INITIATIVES
New business initiatives during the year 2007-08 include:
New Partnerships:
·
MoUs signed with aerospace majors, Lockheed Martin and
Boeing and global defence companies EADS and Northrop Grumman and other
companies like Raytheon, Honeywell to exploit opportunities arising out of offsets.
·
MoU signed with Elisra, Israel, for working on various
airborne electronic warfare programmes for the Indian defence.
·
MoU signed with IAI-Malat for working in the field of
Unmanned Aerial Vehicles.
·
Term sheet signed with Rafael, Israel, which is expected to
lead to the formation of a joint venture, for missile electronics and guidance
technologies.
·
MoU signed with Elbit Systems, Israel for co-operation in
the area of Wireless Local Area Network.
NEW MANUFACTURING FACILITIES
Some of the new manufacturing facilities set up during the year 2007-08
are:
DF Range Test Facility - A new DF Range test facility has been set up at the
Hyderabad Unit for testing, calibration and evaluation of ESM Systems. The test
facility caters for simulation of Radar threats in 0.5-40 GHz and facility to
orient ESM System installed on a vehicle in any direction within 0.5 degrees
accuracy.
Radar Threat Simulator Facility - To support the design of Electronic Warfare
Systems, the Hyderabad Unit has created a new Radar Threat Simulator Facility
capable of simulating any type of Radar. Various types of Radars include
Frequency Agile/Chirp/Phase Coded/Stagger PRI/Jitter PRI.
Brazing Facility - Hydrogen atmosphere brazing facility for joining dissimilar
metals with gold-copper alloy has been set up in Bangalore Unit.
Manufacturing facility for C4I Systems - C4I being a growth area for subject,
it has taken the initiative of setting up a dedicated manufacturing facility
for C4I Systems.
EXPORTS
The Company achieved an export turnover of US $ 15.4 million during the year
2007-08 as against US $ 11.6 million during 2006-07, registering an increase of
about 33% over previous year. Data display unit and accessories as part of
Artillery Fire Control System, Small Arms Training Simulator, Radar Warning
Receiver for MIG 29 fighter upgrade program, Non Eye Safe and Eye Safe Laser
Range Finder, Radar spares, X-Ray parts, various components like Small Signal
Devices, Power Devices, Vacuum Interrupters, Magnetrons, Solar Cells, etc.,
contributed to this export turnover. These exports were made to various
countries including, USA, Israel, Indonesia, Ireland, Honduras and Suriname.
During the year, the Company bagged a high value export order worth US $ 9.0
million from Honduras. As on 1.4.2008, the Company had an export order book of
US $ 19.68 million.
During the year 2007-08, the Company and its engineers
received a number of awards/recognitions for the R and D efforts. These are
listed under the paragraph on Awards and Recognition.
23 Scientific papers were presented/published during 2007-08 in various
national/international seminars, conferences/journals by the scientists of
company Central Research Laboratories and the R and D Engineers.
During the year 2007-08 the Company spent 5.1% of its turnover on R and D and
it proposes to invest more on R and D in the coming years. In addition to the
two Central Research Laboratories at Bangalore and Ghaziabad, one more Central
Research Laboratory is planned to be set up at Hyderabad for focused research
work on Electro Optics and Electronic Warfare Systems.
PATENTS
During the year 2007-08 the Company has obtained Patent
registration for Electronic Voting Machine from the African Regional
Intellectual Property Organisation (ARIPO). This patent is valid for a period
of 20 years in 13 African Member countries of ARIPO, viz. Gambia, Ghana, Kenya,
Lesotho, Malawi, Mozambique, Sierra Leone, Sudan, Swaziland, Tanzania, Uganda, Zambia
and Zimbabwe.
SUBSIDIARY/JOINT VENTURES
Company's subsidiary at Pune, BEL Optronic Devices Limited, (BELOP) recorded a
turnover of Rs.440.2 million as against the turnover of Rs.604.9 million in the
previous year. The Profit After Tax was Rs.13.86 million as against Rs.81.56
million in the previous year. Performance of BELOP during the year was not
consistent with its past performance. BELOP manufactures Image Intensifier
Tubes (I.I.Tubes). These tubes are supplied to the Defence Customers and also
used in the Night Vision Devices manufactured by company. BELOP has not
received any major orders for I.I. Tubes during the year which has resulted in
lower sales and the lower turnover has resulted in lower profit also. The lower
demand for I.I. Tubes is because the main customer i.e. Indian Army has shifted
its requirement from IInd Gen tubes to higher specification I.I. Tubes. BELOP
does not have currently the technology for the higher specification tubes.
Efforts are on to source technology for the higher specification tubes from
available sources in the world market. Parallelly, efforts are being made for
in-house development of next generation I.I. Tubes. Recently, the subsidiary
has received an order for Rs.520 millions and performance of the Company is
expected to improve in coming years.
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 and Loss Account, Auditors Report, Directors' Report, etc., of
the subsidiary company to the Balance Sheet of company. Hence, Annual Accounts
of the subsidiary company, BEL Optronic Devices Limited, are not attached to
the Balance Sheet of company. A copy of the Annual Accounts of BELOP and the
related information will be made available upon request by any member of
subject or BELOP. The Annual Accounts of BELOP are kept for inspection by
investors at the registered office of subject and BELOP. Any investor
interested to inspect the same may please contact the Company Secretary of
subject or BELOP. A statement as per Section 212 of the Act relating to the
subsidiary company, BELOP, 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 Act is provided in this Annual Report.
The Joint Venture Company (JVC) with General Electric, USA, viz. GE BE Private
Limited., manufacturing CT Max and other latest version X-Ray Tubes continues
to perform well. Subject supplies some parts required for the products
manufactured by this JVC. GE BE Private Limited., achieved a turnover of
Rs.4356.5 million as against Rs.4365.4 million in the previous year. The Profit
After Tax was Rs. 355.86 million as against Rs.439.62 million in the previous
year. The JVC declared and paid 100% dividend for the year 2006-07 and subject
received Rs.26 million as dividend from the JVC on subject share of investment.
The other JVC, viz. BEL Multitone Limited, jointly promoted by subject and
Multitone plc, UK was set up to supply, install and service Private Paging
Systems and Pagers. With paging systems no longer in demand and phased out,
there has been no scope of business for this JVC. Hence, it was decided to
close down this JVC and action is in progress. The JVC is presently in shell
stage with no business transactions being effected.
CONSOLIDATED ACCOUNTS
Consolidated Financial Statements of the Company and its Subsidiary and Joint
Venture Companies are attached to this Report.
QUALITY
All Units/SBUs/Divisions of subject are certified to ISO 9001:2000 QMS
Standards. Third party Surveillance audits are conducted at six monthly
intervals and no major non-conformities were reported. The Company as a whole
has 20 certificates with accreditation from UKAS, UK. 17 Units/SBUs/Divisions
are certified for ISO 14001:2004 EMS standards. Seven Units/SBUs have been
identified for AS 9100 certification meeting the aerospace requirement. Of
these, three Business Units, viz. EW and A SBU-Bangalore Complex, Panchkula
Unit and Kotdwara Unit have been certified. Other four Business Units are in
various stages of the certification process. Pune Unit has been certified for
ISO 13485:2003. This is an international standard covering design and development,
production, installation and servicing of medical devices and related services.
It is a prerequisite for being considered for CE marking, which the Unit is
pursuing. Obtaining CE marking will enable marketing of subject's X-ray
products in Europe.
During the year 138 Six Sigma projects were completed, facilitating continuous
improvements in products/processes. More than 1,000 officers have been trained
on Six Sigma methodology.
Participation in the Inter Unit Quality Circle Competition (IUQCC) has been
widened to cover more work areas and provide opportunity for performing circles
to come to lime light. The number of circles participating in the IUQCC has
been increased from 13 to 17. The number of prizes won by circles in national
level competitions sponsored by Unit/SBU level has increased manifold. About
700 QC Circles are operating in various Units/SBUs across the organisation.
About 40% of employees are members of the Quality Circles.
During the year several officers across the Company were sponsored for Quality
related training programs. Corporate TORQUE, over the years, has built a strong
team of trained lead auditors for QMS, EMS and also assessors for CII EXIM Bank
Award.
TRADE
TERMS
·
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
FIXED ASSETS
Freehold land
Leasehold land
Roads and Culverts
Buildings
Installations
Plant and Machinery
Electronic Equipment
Equipment for R and D Lab
Vehicles
Office Equipment and Furniture
Fixtures and other Equipment.
As Per Website
Details
Subject was established
at Bangalore, India, by the Government of India under the Ministry of Defence
in 1954 to meet the specialised electronic needs of the Indian defence
services. Over the years, it has grown into a multi-product, multi-technology,
multi-unit company serving the needs of customers in diverse fields in India
and abroad.
Subject offers products and services in a wide spectrum of technology like
Radars, Military Communications, Naval Systems, Electronic Warfare Systems,
Telecommunications, Sound and Vision Broadcasting, Opto-Electronics, Tank
Electronics, Solar Photovoltaic Systems, Embedded Software and Electronic
Components. With its expertise developed over the years, the company also
provides turnkey systems solutions.
Defence continues to be Subject’s prime focus but the Company has also
diversified into civilian areas. Some of the successful civilian products
include the Electronic Voting Machines, Solar Powered LED-Based Traffic Signal
Lights, Simputers and Set Top Boxes.
Subject offers contract-manufacturing services for both domestic and
international customers. It has automated assembly, inspection and testing
facilities as also precision machining capabilities. It adheres to strict
process and manufacturing standards, producing world-class products.
Subject has its corporate office at Bangalore and manufacturing units at nine
locations in India. A network of marketing and customer support centers across
India completes the vertically integrated company profile. Two offices, one in
New York and the other in Singapore mark the company’s current international
presence. SS.
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.
The company has been accredited with ISO 9000 and
ISO 9002 Certifications.
Press Release
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 and
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 and 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 and 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.
May, 2007
Sweden’s Foreign Minister visits BEL
Top Swedish firms are upbeat about forging new business ties with Bharat Electronics Limited (BEL) in the defence and civilian segments.
On a two-day visit to the City, Sweden’s Minister for Foreign Affairs Mr Carl Bildt on Wednesday said there were many areas where BEL, with its wide range of products – from radars to electronic voting machines – and Swedish companies could explore fresh business avenues.
The minister visited the Bangalore Complex of the premier defence public sector unit along with a high-level Swedish business delegation today.
On the occasion, BEL’s Chairman and Managing Director Mr V V R Sastry made a
presentation on the PSU’s capabilities and areas of operations in the defence
and civilian sectors, such as military communication systems, radars and
sonars, naval systems, telecom and broadcast systems, electronic warfare
systems, tank electronics, opto electronics, professional electronic
components, solar-powered systems et al.
Mr Sastry highlighted the possible areas where BEL could contribute in meeting the offset requirements of Swedish firms. This includes design modifications to customise products, software development in embedded processes, real time applications, development of command control systems and encryption products/modules, assembly and testing of electronic assemblies/products, maintenance, repair and overhaul (MRO), system integration, installation and commissioning, as well as contract manufacturing based on ‘Build to Print’ and ‘Build to Spec’.
BEL has already tied up with a few Swedish firms to take advantage of the offset clause for defence procurements from abroad. The offset policy of the Government of India makes it mandatory for foreign companies to invest 30 per cent of the contract amount in India for procurements valued at Rs.3000 Millions or more.
The delegation later took a tour of the Electronic Warfare and Avionics and Telecom and Broadcast Systems strategic business units and Quality Assurance facilities at BEL.
BEL conferred
Navratna status today
Premier defence PSU Bharat Electronics Limited (BEL) was formally conferred the Navratna status by the Finance Minister, Mr P Chidambaram, at an investiture ceremony held at New Delhi today (June 22, 2007).
Bharat Electronics Limited, the leading Indian defence PSU, manufactures a wide range of products in the areas of Military Communication, Radars, Naval Systems, Telecom and Broadcast, Electronic Warfare, Tank Electronics, Opto-electronics, Professional Electronic Components and Solar Photovoltaic Systems. BEL became a Mini Ratna Category I company in February 2002 and has now been elevated to a Navratna based on its consistent performance.
BEL was started in 1954 to meet the defence electronics requirements of the Indian Armed Forces. Starting with a single Unit at Bangalore, BEL now has nine Units spread across the country. From a humble beginning, BEL has grown steadily over the years to register a CAGR of around 15% in the last 5 years. During 2006-07, BEL recorded a turnover of Rs.39603.800 millions (provisional), PAT of Rs.7138.500 millions (provisional). 81% of the turnover accrued from products of indigenous design, which included BEL's own RandD efforts and its collaboration with DRDO labs. BEL spends nearly 5 per cent of its turnover on RandD. BEL is constantly innovating and coming out with new products to meet customers' requirements.
Mr V V R Sastry, Chairman and Managing Director of BEL, says, "They are delighted. It is a recognition of the company's inherent strengths in research and development, manufacturing, quality and thrust on self-reliance. It is also a recognition of the company's ability to face global competition and become an international player."
"On the occasion of BEL formally being conferred Navratna status, they would like to thank all their stakeholders – the Ministry of Defence, customers, particularly the Armed Forces, employees, technology partners like DRDO, business associates, vendors and shareholders, without whose unstinting support they would not have reached this milestone," Mr Sastry reiterates.
The eligibility for considering a PSU for Navratna status is that it should be a Mini Ratna I, Schedule 'A' company and have obtained 'excellent or 'very good' MoU rating in three of the last five years and a composite performance score of 60 or above on various financial
parameters for the last three years including Net Profit to Net Worth, Manpower
Cost to Total Cost of Production, PBDIT to Capital Employed, PBIT to Turnover
and Earning Per Share.
It is also appropriate to mention that BEL has been ranked first among mid-size aerospace / defence companies worldwide by Aviation Week and Space Technology for 2004 and 2005. BEL was named Star PSU for 2004-05 by Business Standard.
By becoming a Navratna PSU, BEL will have greater financial and operational autonomy. BEL looks forward to leverage this for further business growth and diversification.
BEL hands over
spacecraft components to ISRO
Premier defence PSU Bharat Electronics Limited (BEL) on Thursday handed over to the Indian Space Research Organisation (ISRO) two Flight Model Travelling Wave Tubes (TWTs), Space-Qualified Components that are used on board Communication Satellites.
At present, there are only a handful of companies in the world, which make Space-Qualified Components for spacecrafts.
Speaking on the occasion, ISRO Chairman Mr Madhavan Nair complimented the indigenisation effort, saying it opened a new leaf in the area of space-qualified components. He also stressed on the need to develop highly efficient solar cells for satellite applications.
BEL Chairman and Managing Director Mr V V R Sastry said that Bharat Electronics Limited, which supplied state-of-the-art defence equipment to the armed forces, was keen to explore the space segment. “They have had successes on land, underwater and air. And now they are all set to venture into the realm of space,” Mr Sastry said.
The TWTs were designed and developed as part of a joint project of BEL, Bangalore, ISRO Satellite Centre, Bangalore, and Central Electronic Engineering Research Institute (CEERI), Pilani.
Based on a design provided by CEERI, Pilani, BEL developed the two Flight Model TWTs called BTC 60 FM1 and BTC 60 FM2 after a series of acceptance tests at its Bangalore unit.
BEL also handed over to ISRO an indigenously developed and tested Application Specific Integrated Circuit (ASIC) called BE03RD Relay Driver on the occasion. Ideal for industrial purposes, the relay driver replaces a bulky HMC version and has high breakdown voltage, internal suppression diodes and can resist inductive loads operating with a peak current of 500 milli amperes.
The BE03RD Relay Driver comes in a six-in-one package and all six channels can be used simultaneously. The circuit design, simulation, physical verification and wafer fabrication for this product has been done by BEL using high-voltage, bi-polar technology at its Bangalore unit.
The Relay Driver ASICs were used in SRE, HAMSAT and CartoSAT-2 spacecrafts successfully.
The successful completion of these Space Qualified Components heralds a new era in the synergistic indigenisation and development efforts of scientific organisations in India.
Dr K N Shankara, Director, ISAC, and Dr S N Joshi, Director, CEERI, also spoke
on the occasion.
CMT REPORT
(Corruption, Money Laundering and 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 :
The 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.
The 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.46.63 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.66.49 |
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|