MIRA INFORM REPORT
|
Report Date : |
18.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHARAT
ELECTRONICS LIMITED |
|
|
|
|
Registered Office : |
Outer Ring Road,
Nagavara, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
21.04.1954 |
|
|
|
|
Com. Reg. No.: |
08-000787 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L32309KA1954GOl000787 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRB04051F /
BLRC00582B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACB5985C |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. Company’s Shares are Listed on the stock Exchanges. |
|
|
|
|
Line of Business : |
Provides
Software Development, Semiconductor Device Packing and Quality Assurance
Services. Manufacturers of Defence and Civil Communication Products. |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
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 170000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well
established and a reputed company having fine track. Financial position of
the company appears to be sound. Fundamentals are strong and healthy. Trade relations
are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered normal for business at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
Outer Ring Road, Nagavara,
|
|
Tel. No.: |
91-80-25039300/25039266 |
|
Fax No.: |
91-80-25039305/25039233 |
|
E-Mail : |
|
|
Website : |
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|
|
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|
Head Office : |
IC Design Centre, Jallahalli, |
|
Tel. No.: |
91-80-22195857 |
|
Fax No.: |
91-80-28380108 |
|
|
|
|
Corporate
Office : |
2nd
Floor, |
|
Tel. No.: |
91-80-2559 5001 /
2559 5017 / 2558 3851 |
|
Fax No.: |
91-80-2558 4911 /
2558 3675 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Jalahalli Post, |
|
Tel. No.: |
91-80-28382626 /
22195621 / 22195683 |
|
Fax No.: |
91-80-28380266 |
|
|
|
|
Factory 2 : |
Bharat Nagar
Post, |
|
Tel. No.: |
91-120-2619786 /
2619500 |
|
Fax No.: |
91-120-2776730 /
2770926 |
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|
|
|
Factory 3 : |
|
|
Tel. No.: |
91-20-25881400/
01/ 02 |
|
Fax No.: |
91-20-25880577/
25888789 |
|
|
|
|
Factory 4 : |
Post Box No. 26, |
|
Tel. No.: |
91-8672-223581-83 |
|
Fax No.: |
91-8672-222640 |
|
|
|
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Factory 5 : |
Plot No. 405,
Industrial Area, Phase III, Panchkula - 134 113, |
|
Tel. No.: |
91-172-2588252 /
2588400 |
|
Fax No.: |
91-172-2594548 /
2591463 |
|
|
|
|
Factory 6 : |
Balbhadrapur,
Kotdwara - 246 149, |
|
Tel. No.: |
91-1382-231171 to
231178 |
|
Fax No.: |
91-1382-231132 /
231112 / 231156 |
|
|
|
|
Factory 7 : |
Plot No. L-1,
MIDC, Industrial Area, Raigad District, Taloja - 410 308, |
|
Tel. No.: |
91-22-27412701 |
|
Fax No.: |
91-22-27412888 /
27412887 |
|
|
|
|
Factory 8 : |
Post Box No. 981,
Nandambakkam, Chennai – 600 089, Tamil Nadu, |
|
Tel. No.: |
91-44-22326906 |
|
Fax No.: |
91-44-22326905 |
|
|
|
|
Factory 9 : |
Nacharam
Industrial Estate, |
|
Tel. No.: |
91-40-27150113 to
17 |
|
Fax No.: |
91-40-27171406 |
|
|
|
|
Overseas
Office: |
53-55, |
|
Tel. No.: |
516-248-4020 |
|
Fax No.: |
516-741-5894 /
516-877-7907 |
|
Email: |
|
|
|
|
|
Overseas
Office: |
06-01, |
|
Tel. No.: |
65-741-8401 |
|
Fax No.: |
65-741-8402 |
|
Email: |
DIRECTORS
As on 28.09.2010
|
Name : |
Mr. Ashwani Kumar Datt |
|
Designation : |
Chairman and
Managing Director |
|
|
|
|
Name: |
Mr. M. L.
Shanmukh |
|
Designation: |
Director (Human Resources) |
|
|
|
|
Name : |
Mr. H.S. Bhadoria |
|
Designation : |
Director ( |
|
|
|
|
Name : |
Mr. H N Ramakrishna |
|
Designation : |
Director
(Marketing) |
|
|
|
|
Name : |
Mr. I V Sarma |
|
Designation : |
Director (Research
and Development) |
|
|
|
|
Name : |
Mr. M G Raghuveer |
|
Designation : |
Director
(Finance) |
|
|
|
|
Part-time Government Directors |
|
|
|
|
|
Name: |
Mr. Satyajeet Rajan |
|
Designation: |
IAS, Joint Secretary (Shipyards), Ministry of Defence,
Department of Defence Production |
|
|
|
|
Name: |
Lt Gen P Mohapatra |
|
Designation: |
AVSM, Signal Officer-in-Chief, Army
Headquarters |
|
|
|
|
Part - Time Independent
Directors |
|
|
|
|
|
Name: |
Lt Gen (Retd) G Sridharan |
|
Designation: |
Former Director General Quality
Assurance, Ministry of Defence |
|
|
|
|
Name: |
Mr M S Ramachandran |
|
Designation: |
Ex-Chairman, Indian Oil Corporation
Limited |
|
|
|
|
Name: |
Prof V K Bhalla |
|
Designation: |
Professor, FMS, |
|
|
|
|
Name: |
Mr Anil Razdan, |
|
Designation: |
Ex-Secretary to Government of |
|
|
|
|
Permanent
Special Invitees to all the Board Meetings : |
|
|
|
|
|
Name: |
Air
Marshal P K Barbora |
|
Designation: |
PVSM,
VM, ADC, Vice Chief of Air Staff,
Indian Air Force |
|
|
|
|
Name: |
Vice
Admiral Dilip Deshpande |
|
Designation: |
AVSM,
AVSM, VSM, Chief of Material, Indian Navy |
KEY EXECUTIVES
|
Name: |
Mr. Syed Kabeer Ahmed, IRSME |
|
Designation: |
Chief Vigilance Officer |
|
|
|
|
Name: |
Mr. C.R. Prakash |
|
Designation: |
Company Secretary |
|
|
|
|
General Managers : |
·
Mr.
G D Gupta ·
Mr.
Ramesh Kumar Marhatha ·
Ms.
Elaine Mathias ·
Mr.
Jagdish Kumar Batheja ·
Mr.
Ramesh Chandra Nautiyal ·
Mr.
H S Bhatia ·
Mr.
Girish Kumar ·
Mr.
M V Gowtama ·
Mr.
Vipin Katara |
|
|
|
|
UNITS :
(Executive Directors / General Manager) |
|
|
|
|
|
|
·
Mr.
A A Mohan Ram ·
Mr.
Philip Jacob ·
Mr.
M S Venkatesha Murthy ·
Mr.
Amol Newaskar ·
Mr.
C Nageshwar Rao ·
Mr.
S Ramachandran ·
Mr.
Monmohan Handa ·
Mr.
A R Krishna Murthy · Mr. P C Jain · Mr. M Vijayaraghavan · Mr. Sanmoy Kumar Acharya |
|
|
|
|
Chennai
: |
·
Mr.
D. K Mehrotra |
|
|
|
|
|
· Mr. Sunil Kumar Sharma ·
Mr. Chander Prakash (Executive Directors) ·
Mr. Sushil Chand Jain |
|
|
|
|
|
·
Mr. G Raghavendra Rao |
|
|
|
|
Kotdwara : |
·
Mr. R Chandra Kumar |
|
|
|
|
Machilipacnam |
·
Mr. Vijay Gundannavar |
|
|
|
|
Navi Mumbai |
·
Mr. R K Handa |
|
|
|
|
Panchkula |
·
Mr. N Suresh |
|
|
|
|
Pune : |
·
Mr. Amarendra Dasari |
|
|
|
|
CRL, |
Dr. AjitT. Kalghatgi, Chief Scientist |
|
|
|
|
CRL, |
Mr.
K.C. Pandita - Chief Scientist |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
60,689,600 |
75.86 |
|
|
60,689,600 |
75.86 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
60,689,600 |
75.86 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,788,504 |
5.99 |
|
|
63,043 |
0.08 |
|
|
6,932,801 |
8.67 |
|
|
4,195,272 |
5.24 |
|
|
15,979,620 |
19.97 |
|
|
|
|
|
|
1,792,165 |
2.24 |
|
|
|
|
|
|
1,341,154 |
1.68 |
|
|
94,400 |
0.12 |
|
|
103,061 |
0.13 |
|
|
26,496 |
0.03 |
|
|
47,937 |
0.06 |
|
|
28,628 |
0.04 |
|
|
3,330,780 |
4.16 |
|
Total Public shareholding (B) |
19,310,400 |
24.14 |
|
Total (A)+(B) |
80,000,000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Provides
software development, semiconductor device packing and quality assurance
services. Manufacturers of defence and civil communication products. |
||||||||
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|
|
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|
Products : |
|
GENERAL INFORMATION
|
Bankers : |
·
State
Bank of ·
State
Bank of ·
State
Bank of ·
State
Bank of Travancore ·
State
Bank of ·
State
Bank of ·
HDFC
Bank ·
Canara
Bank ·
Syndicate
Bank ·
Vijaya
Bank ·
Bank
of ·
Andhra
Bank |
|||||||||
|
|
|
|||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
RGN Price and
Company Chartered
Accountants Branch Auditors
·
B R
Maheswari and Company Chartered Accountants ·
Argade
Shyam and Company Chartered Accountants ·
N.
Koteswara Rao and Company Chartered Accountants |
|
|
|
|
Memberships : |
Confederation of
Indian Industry |
|
|
|
|
Associates/Subsidiaries : |
·
BEL
Optronic Devices Limited (Equity
Holding 92.79%) |
|
|
|
|
Joint Venture Company: |
· GE-BE Private Limited · BEL-Multitone Limited |
CAPITAL STRUCTURE
As on 31.03.2010
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 |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
800.000 |
800.000 |
800.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
42452.559 |
37036.815 |
31531.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
43252.559 |
37836.815 |
32331.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
7.261 |
12.108 |
13.800 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
7.261 |
12.108 |
13.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
Government Grants |
204.196 |
234.431 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43464.016 |
38083.354 |
32345.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4899.628 |
4674.573 |
4134.900 |
|
|
Capital work-in-progress |
314.285 |
467.216 |
337.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
119.811 |
119.811 |
119.800 |
|
|
DEFERREX TAX ASSETS |
1567.388 |
1466.191 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
24487.052
|
24209.611 |
14234.400 |
|
|
Sundry Debtors |
21683.620
|
22765.276 |
20588.900 |
|
|
Cash & Bank Balances |
35784.050
|
26419.452 |
24534.900 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
4333.283
|
4975.461 |
16727.200 |
|
Total
Current Assets |
86288.005
|
78369.800 |
76085.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
8027.991
|
9612.182 |
|
|
|
Other Current Liabilities |
36282.258
|
31773.193 |
33345.200 |
|
|
Provisions |
5414.852
|
5628.862 |
14987.000 |
|
Total
Current Liabilities |
49725.101
|
47014.237 |
48332.200 |
|
|
Net Current Assets |
36562.904
|
31355.563 |
27753.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
43464.016 |
38083.354 |
32345.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
51804.388 |
45835.339 |
41025.400 |
|
|
|
Other Income |
3633.489 |
2257.107 |
2605.500 |
|
|
|
Profit on sale of fixed assets (net) |
34.196 |
10.569 |
0.000 |
|
|
|
Transfer from grants |
96.434 |
32.029 |
0.000 |
|
|
|
TOTAL (A) |
55568.507 |
48135.044 |
43630.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption of raw materials and components |
22739.521 |
23663.071 |
|
|
|
|
Consumption of stores and spares |
413.469 |
388.668 |
|
|
|
|
Purchase of finished goods |
7092.375 |
6358.824 |
|
|
|
|
Employees remuneration and benefits |
10095.847 |
7557.935 |
|
|
|
|
Other expenses of manufacturing, administration, selling and
distribution |
3581.323 |
3759.191 |
30954.300 |
|
|
|
Exceptional items |
313.491 |
784.747 |
|
|
|
|
Prior periods items |
2.129 |
(9.839) |
|
|
|
|
Expenditure allocated to capital jobs |
(3.574) |
(3.736) |
|
|
|
|
Accretion/ decretion to work in progress, finished goods and
scrap |
(281.080) |
(6495.838) |
|
|
|
|
TOTAL (B) |
43953.501 |
36003.023 |
30954.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
11615.006 |
12132.021 |
12676.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.348 |
107.685 |
37.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11609.658 |
12024.336 |
12639.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1159.423 |
1055.977 |
926.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
10450.235 |
10968.359 |
11713.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3241.525 |
3510.762 |
3445.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
7208.710 |
7457.597 |
8267.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
17723.684 |
16017.205 |
NA |
|
|
|
|
|
|
|
|
|
Less |
TRANSFER
TO CAPITAL RESERVE (CAPITAL PROFIT ON |
9.077 |
0.873 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
480.000 |
480.000 |
NA |
|
|
|
Proposed Final Dividend |
1056.000 |
1016.000 |
NA |
|
|
|
Dividend Tax |
256.966 |
254.245 |
NA |
|
|
|
Transfer to General Reserve |
4000.000 |
4000.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
19130.351 |
17723.684 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
90.11 |
93.22 |
103.34 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
9241.77 |
9778.94 |
13729.960 |
|
Total Expenditure |
8324.56 |
8704.29 |
11502.250 |
|
PBIDT (Excl OI) |
917.21 |
1074.65 |
2227.710 |
|
Other Income |
514.48 |
678.74 |
460.450 |
|
Operating Profit |
1431.69 |
1753.39 |
2688.160 |
|
Interest |
0.45 |
0.55 |
0.450 |
|
PBDT |
1431.24 |
1752.84 |
2687.710 |
|
Depreciation |
297.50 |
299.27 |
295.560 |
|
Profit Before Tax |
1133.74 |
1453.57 |
2392.150 |
|
Tax |
319.60 |
412.87 |
686.180 |
|
Profit After Tax |
814.14 |
1040.71 |
1705.970 |
|
Net Profit |
814.14 |
1040.71 |
1705.970 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
12.97
|
15.49 |
18.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.17
|
23.92 |
28.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.46
|
13.21 |
14.60 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/ Net worth) |
|
0.24
|
0.29 |
0.36 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Net worth) |
|
1.15
|
1.24 |
1.50 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.74
|
1.67 |
1.57 |
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
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
Subject has signed a MOU with General Electric Company,
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
The Company bagged a safety award of merit from National Safety Council,
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
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
PERFORMANCES:
During the year 2009-10 the Company achieved a major milestone by
surpassing, for the first time, Rs. 50000.000 millions mark in turnover. By
logging-in Rs. 52197.740 millions turnover, BEL achieved excellent rating in
turnover parameter for the year, as per the MoU with the Government of India.
This is against Rs. 46236.889 millions turnover in the previous year,
registering a growth of 12.89 % over the previous year. The Value of Production
during the year was Rs. 52478.820 millions as against Rs. 52732.727 millions in
the previous year, marginally lesser by 0.48 % over previous year. The Profit
After Tax for the year was Rs. 7208.710 millions as against Rs. 7457.597
millions in the previous year. Value added per employee for the year was Rs.
1.869 millions, as against previous year's figure of Rs. 1.811 millions.
Supplies to the Defence Sector constituted 83.44 % of the sales, balance 16.56
% being supplies to the civilian sector.
Significant Achievements Major Orders Executed
Some of the important orders executed during the year
include supply of High Power HF Communication Sets, Frequency Hopping VHF
Transreceivers, UHF Handheld Radio, UHF Radio Relays, Upgraded Fire Control
Systems, Surveillance Radar Element, Thermal Imager based Integrated
Observation Equipment, 3D Central Acquisition Radar (Rohini), Shipborne and
Airborne Electronic Warfare Systems, Night Vision Binoculars, Low Flying
Detection Radars (Indra II), L Band Surveillance Radar (Mk III), Ship-based 3D
Surveillance Radar, Doppler Weather Radar, Digital Mobile Radio Relay and
Upgraded EVMs. These equipment have been supplied to a wide range of customers
from the Army, Navy, Air Force, Defence PSUs, Paramilitary and others.
Among the many orders executed during the year, the following merit
special attention: Air Traffic Control Radar 33S Surveillance Radar Element (SRE)
Phase II: It is an S band Air Traffic Control Radar suited for Terminal Control
applications. It detects and automatically tracks a large number of aircraft
within LFA (Local Flying Area) under all weather conditions and is configured
for high availability. Radio Relay F - Low Band: It is a digital communication
equipment that provides fast, reliable and secure communication. It can operate
in a fixed frequency mode or in two different hopping modes - conventional and
adaptive. The transmission security in the network is increased considerably by
the use of frequency hopping techniques.
Business Initiatives
New business initiatives during the year include:
For the last few years, the Indian Defence Forces are in the process of
modernising their infrastructure and their areas of operations. BEL has been
proactively participating in their modernisation activities. Development &
Engineering teams have been set up to work in the areas of Tactical
Communication Systems, Battlefield Management System, Command Information
Decision Support System, Future Infantry Soldier System and High Data Rate
Multi-band Software Defined Radio.
- BEL is
discussing with technology leaders for forming joint ventures in the areas
of defence electronics, namely, Missile Electronics and Guidance Systems,
Airborne Electronic Warfare products, civilian and select defence Radars. Some of these
proposals are in the advanced stage of discussions.
- BEL is also
discussing with BHEL for setting up a joint venture Company (JVC) for Solar
Photovoltaic manufacturing.
- MoU signed
with M/s Indus Teqsite, Chennai, for exploring the setting up of JVC for
development of digital subsystems and test systems for Radars, Avionics,
Electronic Warfare, etc.
- MoU signed
with M/s Thales International, France, for exploring possibility of
setting up of a JVC for civilian and select defence Radars.
- A medium term
perspective plan of the Company has been drawn up for the period
2009-2014. The plan lists the
- challenges,
opportunities and strategies for the Company to face the current defence
business scenario due to increased participation by private companies.
Also, an activity has been launched to study the preparedness of BEL to
meet futuristic customer requirements and achieve accelerated growth in
the next decade. The present capability of the Company in technology,
products and solutions vis-ŕ-vis business growth along with capability
enhancements is being assessed.
Manufacturing Initiatives
State-of-the-art Digital Flight Control Computer (DFCC) manufacturing
facility. During the year the Company
has set up a state-of-the-art integrated manufacturing facility for assembly,
inspection and testing of Digital Flight Control Computer (DFCC), all under one
roof. DFCC is a state-of-the-art, multiple redundant (improving its
reliability, one channel will take over if another fails) Digital Fly-By-Wire
Flight Control System of the Light Combat Aircraft (LCA), Tejas, which
basically controls the maneuvering (pitch, yaw and roll) of the aircraft. The
facility includes Thermal Cycling Chamber, Vibration Machine, Dehumidifying
Chambers for storing PCBs, higher solution inspection tools for identifying
process errors, Automated Test Equipment for rigorous performance testing and
Engineering Test Station for testing the DFCC unit. The facility has ESD safe
flooring and ESD safeguards for assembly, inspection and testing. Reflow and
wave soldering facilities have been set up to enhance reliability. With this
unique facility, the Company has acquired the capability to meet the
requirements of the LCA program.
Walk-in Thermal Chambers have been commissioned which can
test the performance of the products within a temperature range of - 40˚C
to +70˚C.
- Spark 400
Machine has been commissioned for SMT Assemblies.
- Vibration
Machine has been installed to carry out vibration test of large subsystem
/ Test Rack of various projects like Combat Management System and Central
Acquisition Radar.
- Rapid Thermal
Cycling Chamber (Capacity 270 Ltr), an Environmental Stress Screening
chamber with very fast temperature change rate, has been installed.
- Electro-Plating
Facility for Ferrous and Non-ferrous and Magnesium metals has been
established in the plating shop at Machilipatnam Unit.
Exports
During the year, the Company’s exports turnover registered
an impressive growth of 33 per cent from US $ 177.7 lakhs in 2008-09 to US $
236.7 lakhs during 2009-10. The range of products exported includes Composite
Communication System, Versatile Communication System, Fire-Control System, Radar
Warning Receiver, Enhanced Tactical Computer, Night Vision Devices, Data Link
II, FM Transmitters, Crypt-fax, LED based traffic signaling system, Secure
Telephone, Non-Eye Safe and Eye Safe Laser Range Finders, Vacuum Interrupter for
Switchgears, Solar Cells, Magnetrons, X-Ray Tube parts like Casings, Stators,
Magnetic and Electro-mechanical assemblies. These exports were made to various
countries including
Finance
During the year, the Company has been able to meet its
entire fund requirement towards Capital investments and additional working
capital needs without resorting to borrowings, through efficient management of
funds. The Company has been able to retain the highest rating by ICRA, for both
short term and long term sanctioned bank limits, which will continue to help in
securing the best rates for the services availed from the consortium banks.
During the year, many of the activities related to accounting of transactions
have been suitably changed to take advantage of the online ERP platform,
thereby reducing the transaction time of accounting. With passage of time the
availability of centralized data on a real time basis is expected to result in
the desired improvement in the information flow, thereby improving the decision
making process further.
The inventory position of the Company has marginally
increased from 169 days of value of production as on 31st March 2009 to 172
days as on 31st March 2010. Efforts are on to rationalize the procurement
process further with a view to achieving further reduction in the inventory
levels. The level of debtors to sales has improved from 180 days as on 31st March 2009
to 152 days as on 31.03.2010. This reduction in debtors has been brought about
by an increase in the collection of both opening debtors and the current year
debtors, which could be achieved due to better even flow of sales throughout
the year, aided by constant follow up and regular reviews.
The working capital position will be closely monitored to ensure that
the improvement seen in the position of debtors and inventory is sustained.
During the coming year, it is planned to take up the job of IFRS implementation
and the Company will be able to prepare the accounts in line with the IFRS
requirement within the scheduled dead line, as stipulated by the Accounting
Standards Board.
The Company does not have any public deposit scheme at present. However,
the matured past public deposits is Rs. 3.855 millions as on 31.3.2010. Of
these, 34 deposits amounting to Rs. 3.650 millions are claimed but not paid as
these accounts are frozen on advice of Karnataka Lok Ayukta. Remaining past
deposits of Rs. 2.05 millions as on 31.3.2010 is unclaimed. The entire amount
of public deposits outstanding as on 31.3.2010
Performance against MOU
The Company has been signing a Memorandum of Understanding
with its Administrative Ministry, Ministry of Defence (MOD) every year. The
performance of the Company against the MoU for 2009-10 is ‘Excellent’. The MOU
between the MOD and BEL for the year 2010-11 was signed on 4 March 2010. Sales
target set in the MOU for 2010-11 is Rs. 53500.000 millions for achieving ‘Very
Good’ performance rating and Rs. 56175.000 millions for achieving ‘Excellent’
performance rating.
Order Book Position
The order book position of the Company as on 1 April 2010
was Rs. 113500.000 millions , out of which orders worth Rs. 44780.000
millions are executable during 2010-11.
The balance will get executed in 2011-12 and beyond.
Environment Management
The Company is committed to clean and healthy environment
and has been maintaining the surroundings free from pollution. As an
organization accredited to ISO 14001:2004 standard, the Company has great
regard to environment and puts in every effort to prevent pollution of any kind
in all its activities. BEL adopts cleaner technology, zero effluent discharge,
rain water harvesting techniques, conservation of natural resources, use of
renewable energy etc., to name a few, in it’s Endeavour towards maintaining a
cleaner environment. The significant features of the initiatives are
illustrated below.
Cleaner Technology: Efforts have been made to prevent
pollution through introduction of cleaner technology. Changing over to
Cyanide-free Zinc and Copper plating in electroplating process has resulted in
elimination of use of hazardous Cyanide. Alternative electronic components have
been introduced in many of the designs to exclude the hazardous effects of
materials such as Polybrominated compounds, Hexavalent Chromium, Mercury,
Beryllium Oxide, PVC and Lead. Use of Energy efficient devices introduced in
the equipment designs results in resource conservation in addition to reducing
the operating cost. Other measures undertaken include minimising significant
environmental impacts by replacement / change of Hazardous operation / process
/ chemicals with Non-Hazardous processes like replacement of Ozone depleting
substance like Trichloroethylene with Ozone friendly Non-chlorinated solvent,
replacement of Asbestos sheet roof with Aluminum sheets, improvement in
Elctro-Plating processes and operation by modernisation of Electro-Plating and
ETP, provision of Acoustic Enclosures for Noise generating systems, etc.
Water Management: Rainwater harvesting and innovative
recharging of bore wells enable the Company to collect the runoff water and
recharge the ground water table. The large-scale rainwater-harvesting reservoir
at
Emission To Air: Emission to air is checked through stack monitoring and
with appropriate air pollution control equipments. Emissions passing through
chimneys are treated to bring down the level of pollutants much below the
stipulations of State Pollution Control Boards (SPCBs).
Hazardous Waste Management System: The problem associated with
generation of hazardous waste is addressed at root cause level itself. By
utilizing appropriate chemicals in the waste water treatment, less sludge is
generated in the process of chemical detoxification. BEL has tied up with the
State Pollution Control Boards “Treatment, Storage and Disposal Facility”
operators for disposal of landfill able solid hazardous waste. The hazardous
wastes are disposed in a scientific manner as per the guidelines of State
Pollution Control Boards.
Biomedical Waste: Biomedical wastes generated in hospital and medical
centers are collected and disposed of scientifically as per the regulatory
guidelines.
OHSAS 18001(2007) - In addition to caring for the environment, SUBJECT
equally respects the well being of its workforce through OHSAS 18001(2007)
implementation. Bangalore Complex and Ghaziabad Unit are certified for OHSAS
18001: 2007.
Other Initiatives: The Company
has taken action to mitigate climate change as per the National Policy by
establishing two Wind Energy power plants, one 2.5 MW plant near Davanagere
during 2006-07 and another 3 MW plant near Hassan during 2007-08. The two Wind
Energy power plants together have generated 106.5 lakhs units of energy during
2009-10 and has resulted in reduction in CO2 emission to the tune of 9934 tons.
The Company has taken up replacement of two old centrifugal chillers, which
were running with ozone depleting CFC 11 with new energy efficient screw
chillers using eco-friendly refrigerant R134a. The replacement has resulted in
energy savings to the tune of 1.5 lakhs KWhr per year. Old air compressors,
blowers and Air Handling Units have been
replaced with energy efficient ones leading to energy conservation of around
75,000 KWhr per year. In order to keep the environment of the factory and
township green, 1,35,000 trees and 3,60,000 Sq Mtrs of lawn are being
maintained at Bangalore Complex. A herbal park has been developed inside the
Subsidiary / Joint Ventures
The Company’s subsidiary at Pune, BEL Optronic Devices Ltd,.
(BELOP) recorded a turnover of Rs. 587.448 millions as
against the turnover of Rs. 311.467 millions in the previous year, an increase of 89
% over the previous year. BELOP achieved Profit After Tax of Rs. 22.742
millions as against a net loss of Rs. 35.805 millions in the previous year.
BELOP manufactures mainly Image Intensifier Tubes (I.I. Tubes). These Tubes are
supplied to the Defence customers and also used in the Night Vision Devices
manufactured by SUBJECT. Though the subsidiary has performed well during the
year as compared with its performance in the previous year, it still has
problems on the technology front. Indian Army, has shifted its requirement from
II Generation I.I. tubes to higher specification I.I. Tubes for which
technology does not exist with BELOP. Efforts are on to source technology for
the higher specification tubes from available sources in the world market.
Meanwhile, BELOP is importing kits in SKD / CKD form to manufacture higher
specification Tubes to take care of the immediate requirements of the
customers. Due to this, the contribution is low and profitability is affected.
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
CONTINGENT
LIABILITIES:
|
Particular
|
As on 31.03.2010 (Rs. in Millions) |
As on 31.03.2009 (Rs. in Millions) |
|
Claims not acknowledged as debts |
865.470 |
450.646 |
|
Outstanding letters of credit |
2265.862 |
3371.478 |
|
Others |
39.730 |
29.181 |
|
Total |
3171.062 |
3851.305 |
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 31 DECEMBER 2010
Rs. In Millions
|
Particular |
Quarter
Ended |
Six
Months Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Gross Sales/
Income From Operations |
13364.081 |
32276.436 |
|
Less: Excise Duty
|
151.558 |
325.050 |
|
Net Sales/ Income
form operation |
13212.523 |
31951.386 |
|
Other Operating
Income |
517.441 |
799.290 |
|
Total Income |
13729.964 |
32750.676 |
|
Expenditure |
|
|
|
Increase /
Decrease in stock |
512.381 |
515.169 |
|
Consumption of
raw material / purchase |
5070.965 |
12336.040 |
|
Purchase of
traded goods |
2542.124 |
6008.120 |
|
Employees cost |
2462.032 |
7542.156 |
|
Depreciation |
295.561 |
892.331 |
|
Other expenditure
|
914.747 |
2129.617 |
|
Total expenditure
|
11797.810 |
29423.433 |
|
Profit from
operation before other income, interest and exceptional items |
1932.154 |
3327.243 |
|
Other income |
460.446 |
1653.666 |
|
Profit before
interest and exceptional items |
2392.600 |
4980.909 |
|
Interest |
0.449 |
1.439 |
|
Profit after
interest but before exceptional items |
2392.151 |
4979.470 |
|
Exceptional items |
-- |
-- |
|
Profit / Loss from
ordinary activities before tax |
2392.151 |
4979.470 |
|
Tax expenses |
686.181 |
148.651 |
|
Net profit/ Loss
from ordinary activities after tax |
1705.970 |
3560.819 |
|
Extra ordinary
items |
-- |
-- |
|
Net profit / Loss
for the period |
1705.970 |
3560.819 |
|
Paid up equity
share capital (face value of equity shares of Rs. 10/- each) |
800.000 |
800.000 |
|
Reserves
excluding revaluation reserves |
-- |
-- |
|
Earning per
shares (in Rs) Basic/ Diluted |
21.32 |
44.51 |
|
Public
shareholding |
|
|
|
Number
of Shares |
19310400 |
19310400 |
|
% of
Shareholding |
24.14 |
24.14 |
|
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
Nil |
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
Nil |
Nil |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
|
b)
Non Encumbered |
|
|
|
-
Number of Shares |
60689600 |
60689600 |
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
100.00 |
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
75.86 |
75.86 |
Previous year/quarter figures have been regrouped wherever necessary.
Notes:
(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 Private Limited
are not included above.
(3) The employees
cost for the current period is higher on account of implementation of pay
revision for non-executives during the current year and consequential increase
in other benefits.
(4) An Interim
Dividend of ` 6 per share for the year 2010-11 has been declared by the Board
of Directors at the meeting held on 28 Jan 2011.
(5) The number of
investor complaints pending at the beginning of the quarter, received and
disposed of during the quarter, and lying unresolved at the end of the quarter
ended 31 Dec 2010 are nil, nil, nil and nil respectively.
(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 the Audit Committee and approved
by the Board of Directors at the meeting held on 28 Jan 2011.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records 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.44.52 |
|
|
1 |
Rs.72.71 |
|
Euro |
1 |
Rs.64.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
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 |
|
73 |
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 |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.