MIRA INFORM REPORT

 

 

Report Date :

08.06.2013

 

IDENTIFICATION DETAILS

 

Name :

BHARAT ELECTRONICS LIMITED

 

 

Registered Office :

Outer Ring Road, Nagavara, Bangalore – 560045, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

21.04.1954

 

 

Com. Reg. No.:

08-000787

 

 

Capital Investment / Paid-up Capital :

Rs.800.000 Millions

 

 

CIN No.:

[Company Identification No.]

L32309KA1954GOl000787

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRB04051F/ BLRC00582B

 

 

PAN No.:

[Permanent Account No.]

AAACB5985C

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

The Company is engaged in manufacture and supply of strategic electronic products primarily to Defence Services.

 

 

No. of Employees :

10791 (Approximately)

 

 

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 225000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well established and a reputed company having a fine track record. 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 good for business dealings 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

AAA- (Fund Based Limits)

Rating Explanation

Highest degree of safety and lowest credit risk.

Date

March 2013

 

Rating Agency Name

ICRA

Rating

A1+ (Short Term Debt)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

March 2013

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

Outer Ring Road, Nagavara, Bangalore – 560045, Karnataka, India

Tel. No.:

91-80-25039300/25039266

Fax No.:

91-80-25039305/25039233

E-Mail :

cmd@giasbg01.vsnl.net.in

imd@bel-india.com

info@bel-india.com

secretary@bel.co.in

rodel@bel.co.in

nmdel@bel.co.in

corpcomn@bel.co.in

Website :

http://www.bel-india.com

 

 

Head Office :

IC Design Centre, Jallahalli, Bangalore – 560013, Karnataka, India

Tel. No.:

91-80-22195857

Fax No.:

91-80-28380108

 

 

Corporate Office :

2nd Floor, Shankaranarayana Building, 25, M. G. Road, Bangalore – 560001, Karnataka, India

Tel. No.:

91-80-2559 5001 / 2559 5017 / 2558 3851

Fax No.:

91-80-2558 4911 / 2558 3675

E-Mail :

imd@bel-india.com

 

 

Factory 1 :

BEL – BG Complex, Jalahalli Post, Bangalore - 560013, Karnataka, India

Tel. No.:

91-80-28382626 / 22195621 / 22195683

Fax No.:

91-80-28380266

 

 

Factory  2 :

Bharat Nagar Post, Ghaziabad - 201 010, Uttar Pradesh, India

Tel. No.:

91-120-2619786 / 2619500

Fax No.:

91-120-2776730 / 2770926

 

 

Factory  3 :

NDA Road, Pashan, Pune - 411 021, Maharashtra, India

Tel. No.:

91-20-25881400/ 01/ 02

Fax No.:

91-20-25880577/ 25888789

 

 

Factory  4 :

Post Box No. 26, Ravindranath Tagore Road, Machalipatnam - 521 001, Andhra Pradesh, India

Tel. No.:

91-8672-223581-83

Fax No.:

91-8672-222640

 

 

Factory  5 :

Plot No. 405, Industrial Area, Phase III, Panchkula - 134 113, Haryana, India

Tel. No.:

91-172-2588252 / 2588400

Fax No.:

91-172-2594548 / 2591463

 

 

Factory  6 :

Balbhadrapur, Kotdwara - 246 149, Uttaranchal, India

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, Maharashtra, India

Tel. No.:

91-22-27412701

Fax No.:

91-22-27412888 / 27412887

 

 

Factory 8 :

Post Box No. 981, Nandambakkam, Chennai – 600 089, Tamilnadu, India

Tel. No.:

91-44-22326906

Fax No.:

91-44-22326905

 

 

Factory  9 :

Nacharam Industrial Estate, Hyderabad – 500076, Andhra Pradesh, India

Tel. No.:

91-40-27150113 to 17

Fax No.:

91-40-27171406

 

 

Overseas Office:

53-55, Hilton Avenue, Garden City, New York – 11530, USA

Tel. No.:

516-248-4020

Fax No.:

516-741-5894 / 516-877-7907

Email:

belnyro@ix.netcom.com

 

 

Overseas Office:

06-01, BSL Industrial Building, 156, Mac Pherson Road, Singapore – 348528

Tel. No.:

65-741-8401

Fax No.:

65-741-8402

Email:

besing@singnet.com.sg

 

 

DIRECTORS

 

(AS ON 31.03.2012)

 

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 (Bangalore Complex)

 

 

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)

 

 

Name :

Mr. Anil Kumar

Designation :

Director (Other Units)

 

 

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, University of Delhi

 

 

Name:

Mr Anil Razdan,

Designation:

Ex-Secretary to Government of India

 

 

Name:

Mr. N Sitaram

Designation:

Former Chief Controller (R&D), Defense Research and Development Organization

 

 

Name:

Professor Anurag Kumar

Designation:

Indian Institute of Science, Bangalore

 

 

Name:

Professor G Madhavan Nair

Designation:

Chairman, Indian Space Research Organization

 

 

Name:

Professor R Venkata Rao

Designation:

Vice-Chancellor, National Law School of India University, Bangalore

 

 

Name:

Dr. S N Dash

Designation:

Secretary to Government of India

 

 

Permanent Special Invitees to all the Board Meetings :

 

 

Name:

Mr. P K Kataria

Designation:

Additional Financial Advisor and Joint Secretary, Ministry of Defense

 

 

Name:

Vice Admiral Dilip Deshpande

Designation:

AVSM, AVSM, VSM, Chief of Material, Indian Navy

 

 

 

KEY EXECUTIVES

 

Name:

Mr. M N Krishnamurthy, IPS

Designation:

Chief Vigilance Officer

 

 

Name:

Mr. C.R. Prakash

Designation:

Company Secretary

 

 

General Managers :

·         Mr. Ramesh Kumar Marhatha

·         Ms. Elaine Mathias

·         Mr. Jagdish Kumar Batheja

·         Mr. Ramesh Chandra Nautiyal

·         Mr. Vipin Katara

·         Mr. Ghanshyam Narain

·         Mr. M M Joshi

·         Mr. V V Balkrishnan

·         Mr. R. N. Bagdalkar

·         Mr. V. K. Mehta

 

 

 UNITS : (Executive Directors / General Manager)

 

Bangalore :

·         Mr. Philip Jacob

·         Mr. Manmohan Handa

·         Mr. A R Krishna Murthy

·         Mr. P C Jain

·         Mr. M Vijayaraghavan

·         Mr. Sanmoy Kumar Acharya

·         Mr. M V Gowtama

·         Mr. K R Natarajan

·         Mr. Suresh Katyal

·         Mr. S Chandrasekar

·         Cdr (Retd) T Jagannath

 

 

Chennai :

·         Mr. Vijay Gundannavar

 

 

Ghaziabad :

·         Mr. Sushil Chand Jain (Executive Directors)

·         Mr. Girish Kumar

·         Mr. R K Handa

·         Mr. A K Sharma

 

 

Hyderabad :

·         Mr. G Raghavendra Rao

 

 

Kotdwara :

·         Mr. D K Mehrotra 

 

 

Machilipacnam

·         Mr. R Chandra Kumar

 

 

Navi Mumbai

·         Mr. S S Gokhale

 

 

Panchkula

·         Mr. N Suresh

 

 

Pune :

·         Mr. A R Vaidya

 

 

CRL, Bangalore :

Dr. Ajit T. Kalghatgi, Chief Scientist

 

 

CRL, Ghaziabad

Mr. K.C. Pandita - Chief Scientist

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 31.03.2013

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

60689600

75.86

http://www.bseindia.com/include/images/clear.gifSub Total

60689600

75.86

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

60689600

75.86

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

3945441

4.93

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

47408

0.06

http://www.bseindia.com/include/images/clear.gifInsurance Companies

8182767

10.23

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

2975962

3.72

http://www.bseindia.com/include/images/clear.gifSub Total

15151578

18.94

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

2703980

3.38

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

1265896

1.58

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

101000

0.13

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

87946

0.11

http://www.bseindia.com/include/images/clear.gifClearing Members

11084

0.01

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

48612

0.06

http://www.bseindia.com/include/images/clear.gifTrusts

28250

0.04

http://www.bseindia.com/include/images/clear.gifSub Total

4158822

5.20

Total Public shareholding (B)

19310400

24.14

Total (A)+(B)

80000000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

80000000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

The Company is engaged in manufacture and supply of strategic electronic products primarily to Defence Services.

 

 

Products :

Products Description

Item Code No.

 

Radar

85261000

Communication Transmitters cum Receivers

85252000

Hand Held Thermal Magers/ Electro Optic Products

90058090

 

 

GENERAL INFORMATION

 

No. of Employees :

10791 (Approximately)

 

 

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

·         ICICI Bank Limited

·         IDBI Bank

·         HDFC Bank Limited

·         Canara Bank

·         Syndicate Bank

·         Vijaya Bank

·         Bank of Baroda

·         Andhra Bank

·         Axis Bank

 

 

Facilities :

(Rs. In Millions)

Secured Loans

31.03.2012

Long Term Maturity of Finance Lease Obligations

 

Liability on Leased Assets (Vehicles)

0.138

 

 

Total

0.138

 

Secured Loan

 

As on 31.03.2011

Cash Credit from Banks secured by hypothecation of Inventories and Book Debts

0.000

Liability on Leased Assets (Secured by vehicles of lease)

4.105

 

 

Total

4.105

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R G N Price and Company

Chartered Accountants

 

 

Branch Auditors :

 

Name :

·         Mittal Gupta and Company

·         N Koteswara Rao and Company

·         G D Apte and Company

 

 

Subsidiary :

·         BEL Optronic Devices Limited (Equity Holding 92.79%)

 

 

Joint Venture Companies :

·         GE BE Private Limited (Equity Holding 26 %)

·         BEL Multitone Private Limited (Equity Holding 49 %)

 

 

CAPITAL STRUCTURE

 

(AS ON 31.03.2012)

 

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

 

 

 

 

 

 

i. Reconciliation of No. of Shares

 

Particulars

 

2011-2012

 

No. of Shares

Rs. In Millions

 

 

 

Shares outstanding at the beginning of the reporting period

80,000,000

800.00

Add : Shares issued during the year

--

--

Less : Shares Bought Back, Others etc., during the period

--

--

Shares outstanding at the end of the reporting period

80,000,000

800.00

 

 

ii. Details of shareholders holding more than 5% of paid up share capital as on 31.03.2012 is given below:

 

Particulars

 

2011-2012

 

No. of Shares

% of

Shareholding

 

 

 

Government of India

60,689,600

75.86%

 

 

iii. Shares reserved for issue under options and contracts / commitments for the sale of shares/ disinvestment. NIL

 

iv. The aggregate value of calls unpaid (including Director / Officers of Company) NIL

 

v. The Company has only one class of shares viz., Equity Shares.

 

vi. Each holder of Equity Shares is entitled to one vote per share on show of hands and in poll in proportion to the Number of shares held by him / her.

 

vii. Each Share Holder has a right to receive the dividend declared by the Company.

 

viii. On winding up of the Company, the equity shareholders will be entitled to get the realised value of the remaining assets of the Company, if any, after distribution of all preferential amounts as per law. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

800.000

800.000

800.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

55422.101

49057.065

42452.559

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

56222.101

49857.065

43252.559

LOAN FUNDS

 

 

 

1] Secured Loans

0.138

4.105

7.261

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.138

4.105

7.261

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

Government Grants

147.456

168.642

204.196

 

 

 

 

TOTAL

56369.695

50029.812

43464.016

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

5101.591

4837.110

4899.628

Capital work-in-progress

1135.646

589.860

314.285

 

 

 

 

INVESTMENT

119.811

119.811

119.811

DEFERREX TAX ASSETS

2281.557

1806.490

1567.388

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
26737.970
24607.659
24487.052

 

Sundry Debtors
26869.489
29032.466
21683.620

 

Cash & Bank Balances
67725.223
65193.564
35784.050

 

Other Current Assets
1796.948
0.000
0.000

 

Loans & Advances
16815.309
5553.136
4333.283

Total Current Assets
139944.939
124386.825

86288.005

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
10814.270
9045.047
8027.991

 

Other Current Liabilities
75512.397
66929.200
36282.258

 

Provisions
5887.182
5736.037
5414.852

Total Current Liabilities
92213.849
81710.284

49725.101

Net Current Assets
47731.090
42676.541
36562.904

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

56369.695

50029.812

43464.016

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

57676.412

54717.462

51804.388

 

 

Other Income

5854.908

3841.622

3633.489

 

 

Profit on sale of fixed assets (net)

--

13.610

34.196

 

 

Transfer from grants

--

37.845

96.434

 

 

TOTAL                                     (A)

63531.320

58610.539

55568.507

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption of raw materials and components

30452.648

20928.559

22739.521

 

 

Consumption of stores and spares

275.327

302.189

413.469

 

 

Purchase of finished goods

5962.373

10126.947

7092.375

 

 

Employees remuneration and benefits

10812.305

10418.617

10095.847

 

 

Other expenses of manufacturing, administration, selling and distribution

4927.125

4111.830

3581.323

 

 

Exceptional items 

0.000

0.000

313.491

 

 

Prior periods items

38.560

(200.833)

2.129

 

 

Expenditure allocated to capital jobs

0.000

(1.890)

(3.574)

 

 

Accretion/ decretion to work in progress, finished goods and scrap 

(899.489)

88.898

(281.080)

 

 

TOTAL                                     (B)

51568.849

45774.317

43953.501

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

11962.471

12836.222

11615.006

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

6.001

4.336

5.348

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

11956.470

12831.886

11609.658

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1207.989

1220.423

1159.423

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

10748.481

11611.463

10450.235

 

 

 

 

 

Less

TAX                                                                  (H)

2449.503

2996.778

3241.525

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

8298.978

8614.685

7208.710

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

21730.659

19130.351

17723.684

 

 

 

 

 

Less

TRANSFER TO CAPITAL RESERVE (CAPITAL PROFIT ON SALE OF FIXED ASSETS INCLUDED ABOVE)

NA

4.198

9.077

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

480.000

480.000

 

 

Proposed Final Dividend

 

1248.000

1056.000

 

 

Dividend Tax

 

282.179

256.966

 

 

Transfer to General Reserve

 

4000.000

4000.000

 

BALANCE CARRIED TO THE B/S

NA

21730.659

19130.351

 

 

 

 

 

 

Earnings Per Share (Rs.)

103.74

107.68

90.11

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

31.03.2013

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

7969.200

10635.600

14652.200

27781.100

Total Expenditure

9032.200

10737.100

13055.200

21852.700

PBIDT (Excl OI)

(1063.000)

(101.500)

1597.100

5928.400

Other Income

1632.400

1444.300

1295.100

1728.000

Operating Profit

569.400

1342.800

2892.200

7656.500

Interest

3.100

0.200

0.800

3.700

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

566.300

1342.500

2891.300

7652.800

Depreciation

306.100

308.600

318.500

373.800

Profit Before Tax

260.200

1033.900

2572.900

7279.000

Tax

66.900

231.800

596.900

1352.000

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

193.300

802.200

1976.000

5927.000

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

193.300

802.200

1976.000

5927.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
13.06
14.70
12.97

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
18.64
2.95
20.17

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
7.41
8.86
11.46

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.19
0.23
0.24

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.00

0.00

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.52
1.52
1.74

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

-----

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes 

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes 

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS

WP 18110 / 2011

WPSR 94161 / 2011

CASE IS:PENDING

 

PETITIONER

 

RESPONDENT

M/S. ANDHRA SCIENTIFIC COMPANY LIMITED AND 2 ORS.

  VS

C AND M.D., M/S. BHARAT ELECTRONICS LIMITED, BANGALORE

PET.ADV. : RAJAGOPAL REDDY

 

RESP.ADV. : SUBRAHMANYAM

SUBJECT: CENTRAL GOVT. UNDERTAKINGS

 

DISTRICT:  HYDERABAD

FILING DATE:  28-06-2011

POSTING STAGE :  FINAL HEARING (C.G.MATTERS)

 

REG. DATE    :   29-06-2011

LISTING DATE :  21-01-2013

STATUS   :  ---------

HON'BLE JUDGE(S):

G.CHANDRAIAH    

 

 

 

 

 

CHARGES

 ENTITY

COMPETENT AUTHORITY

 REGULATORY CHARGES

REGULATORY ACTION(S) / DATE OF ORDER

BHARAT ELECTRONICS LIMITED

EPFO 

EXEMPTED AND UNEXEMPTED ESTABLISHMENTS DEFAULTED WITH EPFO INCLUDING PROVIDENT FUND, PENSION AND EDLI CONTRIBUTION, ADMINISTRATION CHARGES AND PENAL DAMAGES OF RS.1.761 MILLIONS

AMONG OTHER ACTIONS, NAMES OF DEFAULTERS PUT ON THE EPFO WEBSITE

31-MAR-2012

 

 

PERFORMANCE HIGHLIGHTS

 

Company’s sales turnover for the year 2011 - 12 has increased to Rs.57036.336 Millions from Rs.55296.932 Millions in 2010 - 11, registering a growth of 3.15 %. The growth in sales turnover is marginal due to the inability of the Company to execute a few orders for reasons such as delay in Bulk Production Clearance of new products, partial receipt of items from Consortium Partners, delay in customer trials and evaluation of certain products, etc. Profit after tax for the year was Rs.8298.978 Millions as against Rs.8614.685 Millions, lower by Rs.315.707 Millions (3.66%) over previous year. The main reasons for lower profits are: Lower value addition – Rs.3292.800 Millions and Increase in Employee cost - Rs.393.687 Millions. These are, however, compensated partly by increase in other income – Rs.3905.100 Millions. The lower value addition is mainly on account of high material content in some major products supplied / projects executed during the year, such as, Radio Trunking System, AKASH Missile System, Coastal Surveillance System, Tablet PC, National Population Register and Socio Economic Caste Census, Passive Night Vision System, etc.

 

 

OTHER HIGHLIGHTS

 

·         Turnover from indigenously developed products is 81 percent.

·         Supplies to the defence contributed to 73 percent of turnover as against 80 percent in 2010-11.

·         User trials of Weapon Locating Radar (WLR) were successfully completed.

·         On Board Acceptance Test successfully completed for Combat Management System.

·         6 lakhs Tablet PCs were developed and supplied in record time to the Ministry of Rural Development. This is used for conducting Socio Economic Caste Census to identify Below Poverty Line families.

·         The Prime Minister of Mauritius inaugurated the Coastal Surveillance Radar System in Mauritius during April 2011.

·         Major progress in Socio Economic Caste Census and National Population Register.

·         Customer Co - ordination Cell was inaugurated at Bangalore. This facility will serve as single point window for complaint registration on wide range of company products and maintain status of complaints online.

·         E-procurement was implemented during the year.

 

 

EXPORTS

 

The company’s export turnover during the year 2011-12 was US $ 38.45 million as against the previous year export of US $ 41.53 million.

 

The range of products exported include Coastal Surveillance Radar System, Radar Finger Printing System, HF communication sets, Radar Warning Receiver, Fitted - up Shelters, Electronic Voting Machines, X - Ray tubes, electro - mechanical parts (like Stators, Casing, etc.) and electronic assemblies.

 

During the year, the Company participated in 5 international exhibitions to show case its products and systems capabilities. Countries in Africa, Latin America, Southeast Asia, SAARC, Middle East and CIS countries are the markets for export of company products and systems. Company has also been interacting with the Ministry of External Affairs on a regular basis to supply Coastal Surveillance Radar System to Indian friendly countries under the Government of India one time aid.

 

Apart from the export of products and services, company is focusing on the opportunities in the areas of offset obligations of vendors in the various RFPs of Ministry of Defence. Company has also identified contract manufacturing (both build to print and build to specs) as one of the new areas to address the emerging opportunities with OEMs. Company is closely working with various major foreign Aerospace and Defence companies to secure business under the mandatory Offset Clause in the RFPs for Indian Defence Procurement. Further, efforts are being made to establish long - term supply chain relationships with global players. Company has successfully completed supply of first off sample for flight panel for Boeing, USA. This is expected to result in a business of about US $ 2 Million every year.

 

The Company received the following Exports Awards during the year:

 

(i) Award for Outstanding Achievement in Export of Electronic Products from ELCINA - EFY for the year 2010 - 11; and

(ii) Award for Excellence in Export (Gold) from Karnataka State for the year 2009 - 10 and 2010 - 11.

 

 

FINANCE

 

During the financial year 2011-12, the company has met its fund requirements towards incremental working capital and additional investments on Capital equipments from internal resources. Borrowing has been avoided through close monitoring of cash flows and efficient cash management.

 

The company has retained the highest rating by ICRA for both short term and long term sanctioned bank limits. During the year, the Company inducted three more banks in the consortium of banks, which will help in securing the best rates for the various services availed from the consortium banks. Based on the user requirements, changes continue to be carried out in the online ERP system which should help in better information flow to all concerned.

 

The inventory position of the company as on 31 March 2012 was Rs.27918.182 Millions (Net), as against Rs. 24603.174 Millions (Net) as on 31 March 2011. The inventory as on 31 March 2012 works out to 178 days of the Value of Production (DPE) for the year 2011 - 12 as against the corresponding position at 164 days as on 31 March 2011. The increase in inventory levels at the year end is to meet the higher sales targets of the year 2012-13.

 

The position of Trade Receivables as on 31 March 2012 was Rs.26872.327 Millions (Net) as against Rs.28968.069 Millions (Net) as on 31 March 2011. This works out to 172 days of Turnover for the year 2011 - 12 with the corresponding position at 191 days in the previous year. The realisation of Trade Receivables will continue to be closely monitored to ensure speedy collection which should result in further reduction in Trade Receivables in number of days of Turnover by the end of 2012 - 13.

 

The company does not have any public deposit scheme at present. However, the matured past public deposits with the Company was Rs.3.855 Millions as on 31 March 2012. Of these, 34 deposits amounting to Rs.3.650 Millions are claimed but not paid as these accounts are frozen on advice by Karnataka Lok Ayukta. Remaining past deposits of Rs.0.205 Million as on 31 March 2012 are claimed and pending settlement for want of valid documentation.

 

 

NEW PRODUCT DEVELOPMENT

 

During 2011 - 12, different R and D Divisions of company have completed development of varieties of new products/ systems/ technology modules. Some of the new products / systems introduced during the year include the following:

 

Coastal Surveillance System - It is a major system under supply to the Indian Coast Guard. It is a chain of static sensors (Radar, Electro - optics and Meteorological) located along the Indian coast for monitoring the movement of ships, vessels and small boats. The images, captured through Radar and Electro - optic sensors are transmitted to the Control Centre through a hierarchical reporting system.

 

Tablet PC – company designed and manufactured Tablet PC for the Ministry of Rural Development for use in enumeration for the Socio Economic Caste Census. The Tablet PC was designed and developed in a record time of four months. It is a hand - held, low cost computing device. It has a 7” TFT LCD with touch screen, Internet connectivity through Ethernet, USB, Mini SD Card Slot, Headphone Jack and 2 GB Memory card. The next model with enhanced features is under development.

 

Integrated Anti Submarine Warfare Complex - It is a ship – based Fire Control System for control of launch of rockets and torpedoes to engage surface and sub - surface targets. The system interfaces with sonar systems and other ship borne systems like COTS radar, ship data network, ship house – hold data and computes the target’s motion parameters and controls the launch of rockets and torpedoes suitably. The system has consoles for interfacing with ASW Sonar Systems and External System Interfaces and two Fire Distribution Units for rocket launching and torpedo launching. This is done in collaboration with Naval Science and Technological Laboratory, Vishakhapatnam.

 

Advanced Torpedo Defence System - It is a ship – based system capable of passive detection of surface and submarine targets and torpedoes and active deception of torpedoes through decoys. The system consists of Sonar sub – system with towed transducer array and on - board electronics for target detection and a fire control sub - system with decoy launchers for expendable decoys. This is done in collaboration with Naval Physical and Oceanographic Laboratory, Kochi and Naval Science and Technological Laboratory, Vishakhapatnam.

 

Digital Radio Trunking System - It is a TETRA based 4 channel Radio, operating in the UHF band of 380 to 400MHz, supporting secure voice, data and message communication. Upgraded Indigenous Forward Observer Simulator - It is used to train Forward Observers for indirect firing, using guns of various range capabilities. This is a computer - based system with projection displays for presentation of various images. This is interfaced with models of Integrated Observation Equipment and Laser Designator and Range Finder.

 

Electro Optic Fire Control System - It is used for surveillance, tracking and engagement of sea / air targets. The system is interfaced with the existing gun of NOPV for engagement of targets.

 

Integrated Radio Line Modem - It is a frequency hopping Radio modem, operating in UHF band and integrated with Line modem, as standby for providing redundant data communication. This system is used for providing highly reliable data communication between elements of the weapon system.

 

Remotely Operated Vehicle - This is used for detection of Improvised Explosive Device and diffusion by remote control. The product is engineered based on DRDO technology. This features multiple cameras on - board with pan, tilt and zoom, Six Axis Manipulator Arm with versatile geometry, changeable 3 finger and parallel jaw grippers, touch screen and joystick control and stair climbing capability.

 

Thermal Imaging Camera for Flycatcher Radar - This provides thermal image of targets, which supplements the radar picture of the Flycatcher. It is co - mounted with the antenna for simultaneous viewing of thermal image along with the radar image. The Thermal Imager is a cooled, 3rd Gen camera, operating in 3 - 5μm band and has been completely developed in - house at Company.

 

Scientists from Central Research Laboratories and other R and D divisions of Company have contributed 55 Technical Papers in the national and international journals during the year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

Industry Structure and Developments, Strengths, Weaknesses, Opportunities and Threats, Major Initiatives undertaken and planned to ensure sustained Performance and Growth

 

The Indian economy was faced with a major challenge of managing growth and rising input costs in the past year. The growth in 2011 - 12 is 6.9%, compared to 8.4% in the previous two years. This slowdown is due to the weak industrial growth.

 

The Indian economy is estimated to register a further decline in the growth rate combined with poor profitability due to increase in interest rates leading to higher borrowing cost and other rising costs. This situation has led to using the internal accruals against borrowings. Overall, there has been a reduction in investment by Corporates, both in the public and private sector. However, in the defence segment, there have been investments by both private and public sector enterprises. Though some impact has been witnessed in terms of higher raw material costs, the defence industry has not seen any negative impact on the demand or manufacturing of defence products.

 

Despite Country’s fiscal deficit or inflation issues, the expansionary budget of the Government has helped in increasing the budget for the Defence Ministry this year also. There is an increase in total Defence allocation to Rs.1934070.000 Millions compared to Rs.1644150.000 Millions in the previous year, a growth of 17.63% over the previous year. Share of Capital Expenditure in the defence budget is projected as 41.15% with a growth of 15% compared to last year (additional Rs.103798.200 Millions). This amounts to Rs.664594.300 Millions, being earmarked for Capital

 

Acquisition or modernisation of forces. Further, Navy has been allotted Rs.241515.100 Millions for the modernisation, while the share of budget for Indian Air Force is Rs.285039.000 Millions and Army is Rs.138040.000 Millions. This gives tremendous opportunity for company as it supplies multiple products for Indian Navy, Army and Air force. Current order book position of company gives ample proof of the opportunities. The Defence Production Policy 2011 has emphasized on the self reliance by developing indigenous products and reducing the dependency on the foreign OEMs. This gives opportunities to Indian companies in terms of developing indigenous products required for the Defence forces.

 

The Defence Offset Policy also will gradually help in sourcing products or services from India. Many foreign companies will source directly from Indian Companies or set up Joint Venture to address the Offset Policy requirements. It is to be noted that for MMRCA projects the Offset is at 50% of the contract value whereas it is 30% for all contracts above Rs.3000.000 Millions. This gives immense opportunity for company not only in MMRCA project but also in other major projects.

 

Participation of company in Offset opportunities of Defence has provided an exposure to the best international practices in terms of project management, vendor management practices, risk assessment and management, vendor process certifications, latest manufacturing techniques, latest technologies etc.

 

The Ministry of Defence has come out with a Guidelines document for establishing Joint Venture Companies by Defence Public Sector Undertakings. This opens up the opportunity for Indian and foreign companies to jointly develop products with DPSUs in India within the framework of guidelines. The Guidelines give details on Need for JVC, Protection of DPSU’s interest in JVC, procedure for formation of JVC, exit policies etc.

 

The guidelines will help in enhancing fairness and transparency in the selection of the JV partner by the DPSUs while ensuring a well - defined nature and scope of the tie up. It also provides a streamlined, fair and transparent framework for entering into JVs by DPSUs, with the ultimate objective of obtaining advanced technologies from foreign sources and obtain self - reliance in defence production and shorter time frames for delivery to meet the increasing requirements of armed forces.

 

This will also help company to form JVs with reputed Indian and Foreign Companies with the Complementary strengths and address the various segments of defence market.

 

 

 

ANALYSIS OF FINANCIAL PERFORMANCE OF 2011-12

 

·         Turnover registered a growth of 3.15% from Rs.55296.900 Millions in 2010 - 11 to Rs.57036.300 Millions in 2011 - 12

·         Value of Production has increased from Rs.55208.000 Millions in 2010 - 11 to Rs.57935.800 Millions in 2011 - 12, an increase of 4.94%

·         Sales per employee has increased from Rs.4.946 Millions in 2010 - 11 to Rs.5.286 Millions in 2011 - 12

·         Book Value Per Share has increased from Rs.62.321 Millions in 2010 - 11 to Rs.70.278 Millions in 2011 – 12

·         Net Worth has grown from Rs.49857.065 Millions in 2010 - 11 to Rs.56222.101 Millions in 2011 - 12.

 

 

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

 

Press Release

 

BEL MIGHT NOT LOOK ATTRACTIVE FROM BUDGET PERSPECTIVE: ROY

 

Feb 23, 2013

 

According to Gautam Sinha Roy of Motilal Oswal Securities, Bharat Electronics (BEL) might not look attractive from a Budget perspective.

 

Sinha Roy told CNBC-TV18, "Given that fiscal deficit is running high and fiscal consolidation is definitely on the government’s agenda then the public sector spend on infrastructure as well as defense will definitely get impacted. So, stocks which are placed on that will be stocks where you should not take a long bias."

 

"One example of that will be Bharat Electronics, which is a defense play. And you will have many construction companies, which get a substantial part of their order book from government capex and government spend on infrastructure. So maybe these names might not look attractive from a Budget perspective," Roy added.

 

 

BEL INKS MOU WITH TCOM FOR AEROSTAT SURVEILLANCE SYSTEM

 

BANGALORE, Mar 14:

 

Navratna Defence PSU Bharat Electronics Limited (BEL) has signed an MoU with TCOM, USA, for co-operation on eveloping advanced aerostat surveillance and communication systems to address the Intelligence Surveillance and Reconnaissance (ISR) requirements of the Indian armed forces.


The MoU was signed by Mr. S K Sharma, Director (Bangalore Complex), BEL, and Mr. John Saverino, Chairman and Managing Director, TCOM here BEL said in a release here today, The MoU will strengthen the co-operation between BEL and TCOM, a world leader in Lighter-Than-Air (LTA) technologies, empowering both to leverage their strengths to provide cost-effective, world-class aerostat surveillance and communication systems. The partnership will augment the surveillance capabilities of the Indian Defence Services, Indian security services and Indian law enforcement agencies.


TCOM designs and manufactures a full line of aerostat systems that offer broad range of capabilities optimised for numerous applications. TCOM manufactures the largest Aerostat ever in operation with laminate fabric material for long endurance and surveillance operations. The company was first in the world to produce fiber optic powered tethered system.


Mr. S K Acharya, General Manager of the Electronic Warfare and Avionics Strategic Business Unit of BEL-Bangalore, said that as per the MoU, BEL will be the Prime Bidder to address the aerostat-based ISR requirements of the Indian Defence Services, Indian security services and Indian law enforcement agencies. This will enhance their ISR capabilities, he added. 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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.56.74

UK Pound

1

Rs.88.23

Euro

1

Rs.75.20

 

 

INFORMATION DETAILS

 

Report Prepared by :

VRN

 

 

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

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

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

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.