We have audited the accompanying Standalone Financial
Statements of BHARAT ELECTRONICS LIMITED ("the
Company"), which comprise the Balance Sheet as at March
31, 2025, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity
and the Statement of Cash Flows for the year then ended,
and notes to the Financial Statements, including a summary
of material accounting policies and other explanatory
information (hereinafter referred to as the "Standalone
Financial Statements"). These Standalone Financial
Statements include the financial information / statements of
the Company's branches located at Ghaziabad, Panchkula,
Kotdwara, Pune, Navi Mumbai, and Machilipatnam, which
have been audited by the respective branch auditors for the
year ended March 31, 2025.

In our opinion and to the best of our information and according
to the explanations given to us and based on the audit reports
provided by the branch auditors, the aforesaid Standalone
Financial Statements give the information required by the
Companies Act, 2013 (the "Act") in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the

Act, ("Ind AS") and other accounting principles generally
accepted in India, of the state of affairs of the Company as at
March 31, 2025, its profit and other comprehensive income,
its changes in equity and its cash flows for the year ended on
that date.

Basis for Opinion

We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
("SAs") specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the Auditor's Responsibilities for the Audit of the
Standalone Financial Statements section of our report. We are
independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant
to our audit of the Standalone Financial Statements under the
provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that
the audit evidence obtained by us and by the branch auditors
referred to in the "Other Matters" paragraph, is sufficient and
appropriate to provide a basis for our audit opinion on the
Standalone Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements of the current period. These
matters were addressed in the context of our audit of the
Standalone Financial Statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters. We have determined the matters described
below to be the key audit matters to be communicated in
our report.

Other Information

The Company's Board of Directors is responsible for the other
information. The other information comprises the Corporate
Governance Report included in the Annual Report but does
not include the Standalone Financial Statements and our
auditor's report thereon, which we obtained prior to the date
of this auditor's report, and the Management Discussion
and Analysis and Board of Directors' Report along with its
Annexures, which is expected to be made available to us after
that date. Our opinion on the Standalone Financial Statements
does not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other information
and, in doing so, consider whether the other information
is materially inconsistent with the Standalone Financial
Statements, or our knowledge obtained in the audit or
otherwise appears to be materially misstated.

If, based on the work we have performed on the other
information that we obtained prior to the date of this auditor's
report, we conclude that there is a material misstatement of
this other information; we are required to report that fact.
We have nothing to report in this regard. When we read
the Management Discussion and Analysis and Board of
Directors' Report along with its Annexures, if we conclude
that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance
and describe actions applicable under the applicable laws
and regulations.

Responsibilities of Management and Those Charged
with Governance for the Standalone Financial
Statements

The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to
the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position,
financial performance (including other comprehensive
income), changes in equity and cash flows of the Company
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards
("Ind AS") specified under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015,
as amended.

This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and
presentation of the Standalone Financial Statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the Standalone Financial Statements, the
management and Board of Directors are responsible for
assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless Management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to
do so.

Those Board of Directors are also responsible for overseeing
the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone
Financial Statements.

As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:

• I dentify and assess the risks of material misstatement
of the Standalone Financial Statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.

• Obtain an understanding of internal controls relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act we are also responsible for expressing our
opinion on whether the Company has adequate internal

financial controls with reference to the Standalone
Financial Statements in place and the operating
effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by Management.

• Conclude on the appropriateness of Management's use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Company's ability
to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw
attention in our auditor's report to the related disclosures
in the Standalone Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future
events or conditions may cause the Company to cease
to continue as a going concern.

• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial
Statements represent the underlying transactions and
events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding
the financial information of the branches or business
activities within the Company to express an opinion on
the Standalone Financial Statements. We are responsible
for the direction, supervision and performance of the
audit of the financial statements/financial information
of such branches included in the Standalone Financial
Statements of which we are the independent auditors.
For the other branches included in the Standalone
Financial Statements, which have been audited by other
auditors, such other auditors remain responsible for the
direction, supervision and performance of the audits
carried out by them. We remain solely responsible for
our audit opinion. Our responsibilities in this regard are
further described in the section titled 'Other Matter' in
this audit report.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the Standalone Financial
Statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the
Standalone Financial Statements.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal controls that we identify
during our audit.

We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest
benefits of such communication.

Other Matters

1. We did not audit the financial statements/financial
information of six branches included in the Standalone
Financial Statements of the Company whose financial
statements/ financial information reflect total assets of
' 7,85,047 Lakhs as at March 31, 2025, revenue from
operations of ' 7,81,861 Lakhs and total profit before
tax of ' 2,25,808 Lakhs for the year ended on March 31,
2025. The financial statements / financial information of
these branches has been audited by the branch auditors
appointed by the Comptroller & Auditor General of
India, whose reports have been furnished to us, and
our opinion in so far as it relates to the amounts and
disclosures included in respect of these branches, is
based solely on the report of such branch auditors.

2. As on 31 March 2025, the Company's Board of Directors
comprises six Whole-time Executive (Functional)
Directors including the Chairman and Managing
Director and two Part-time Government (Non-Executive)
Directors. The composition of the Board is not in terms
of Regulation 17(1) of SEBI (Listing Obligations and
Disclosure Requirements) Regulation, 2015 with effect
from 10 August 2024 and not in terms of section 149 of
the Companies Act, 2013 with effect from 28 December
2024, due to non-appointment of requisite number of
Independent Directors on the Board of the Company by
Ministry of Defence, Government of India.

There are nine vacancies of Independent Directors, including
one Independent Woman Director as on 31 March 2025. All
the vacancies were notified in time to the Government for
filling up and the matter is under consideration of the Ministry
of Defence, Government of India.

Our opinion on the Standalone Financial Statements is not
modified in respect of the above matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order"), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Act,
based on our audit and on the consideration of reports of
the branch auditors on the financial statements/financial
information of the branches, we give in Annexure 'A'; a
statement on the matters specified in paragraphs 3 and
4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, based on our
audit and on the consideration of reports of the branch
auditors on the financial statements/financial information
of the branches we report that:

a) We have sought and obtained all the information
and explanations which to the best of our knowledge
and belief were necessary for the purposes of
our audit.

b) In our opinion, proper books of account as required
by law have been kept by the Company so far as
it appears from our examination of those books
except for the matters stated in the paragraph 2
(j)(vi) below on reporting under Rule 11(g). In case
of New York, Singapore and Other offices, not
visited by us, the Returns/records received from
the said offices have been verified and found to be
adequate for the purpose of our audit.

c) The reports on the accounts of the branch offices of
the Company audited under Section 143(8) of the
Act by the branch auditors (Ghaziabad, Panchkula,
Kotdwara, Pune, Navi Mumbai and Machilipatnam)
have been sent to us and have been properly dealt
with by us in preparing this report.

d) The Balance Sheet, the Statement of Profit and
Loss (including other Comprehensive Income), the
Statement of Changes in Equity and the Statement
of Cash Flows dealt with by this Report are in
agreement with the books of account.

e) I n our opinion, the aforesaid Standalone Financial
Statements comply with the Indian Accounting

Standards specified under Section 133 of the Act,
read with Companies (Indian Accounting Standards)
Rules, 2015, as amended.

f) According to the information and explanation
provided to us and as per Notification no. GSR
463(E) dated 5 June 2015, Section 164 (2) of
the Act - 'Disqualifications for appointment of
director' is not applicable to the Company, being
a Government Company.

g) With reference to the maintenance of accounts and
other matters connected therewith, refer to our
comment in Paragraph 2 (b) above and refer to our
comment in paragraph 2(j)(vi) below, on reporting
under rule 11 (g).

h) With respect to the adequacy of the internal
financial controls with reference to the Standalone
Financial Statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy
and operating effectiveness of the Company's
internal financial controls with reference to the
Standalone Financial Statements.

i) According to the information and explanation
provided to us and as per Notification No. GSR
463(E) dated 5 June 2015, Section 197 of the Act
- 'Overall maximum managerial remuneration
and managerial remuneration in case of absence
or inadequacy of profits' is not applicable to a
Government Company. Accordingly, reporting
under section 197 (16) of the Act is not applicable.

j) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us and on
the consideration of reports of the branch auditors:

i. The Company has disclosed the impact of
pending litigations on its financial position in
its Standalone Financial Statements - Refer
Note 30(8)(i) and 30(8)(ii) to the Standalone
Financial Statements.

ii. The Company has made provision as required
under the applicable law or accounting
standards, for material foreseeable losses.
The Company did not have any long-term

derivative contracts. Refer Note 21 to the
Standalone Financial Statements.

iii. There has been no delay in amount required to
be transferred, to the Investor Education and
Protection Fund by the Company during the
year ended March 31, 2025.

iv. (a) The Management has represented to us

that, to the best of its knowledge and
belief, no funds have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the Company
to or in any other person or entity, including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend
or invest in other persons or entities
identified in any manner whatsoever by
or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate
Beneficiaries. Refer note 30 (21) (e) to the
Standalone Financial Statements.

(b) The Management has represented to us,
that, to the best of its knowledge and
belief no funds have been received by
the Company from any person or entity,
including foreign entities ("Funding
Parties"), with the understanding,
whether recorded in writing or otherwise,
that the Company shall, whether, directly
or indirectly, lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf of the
Funding Party ("Ultimate Beneficiaries")
or provide any guarantee, security
or the like on behalf of the Ultimate
Beneficiaries. Refer note 30 (21) (f) to the
Standalone Financial Statements.

(c) Based on the information and explanation
given to us and audit procedures
performed as considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
made by the Management under sub¬
clause j) (iv)(a) and (iv)(b) above, contain
any material misstatement.

v. As stated in Note 30(17) to the Standalone
Financial Statements

(a) The final dividend proposed in the
previous year, declared and paid by the
Company during the year is in accordance
with Section 123 of the Act, as applicable.

(b) The interim dividend declared and paid
by the Company during the year and until
the date of this report is in compliance
with Section 123 of the Act.

(c) The Board of Directors of the Company
have proposed final dividend for the year
which is subject to the approval of the
members at the ensuing Annual General
Meeting. The amount of dividend
proposed is in accordance with section
123 of the Act, as applicable.

vi. Based on our examination which included test
checks, the Company, has used an accounting
software, for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software except that no audit
trail (edit log) facility/feature was enabled at
the database level to log any direct changes.
During the course of our audit, so far it relates
to audit trail in respect of transactions, we did
not come across any instance of audit trail
feature being tampered with and the audit trail
has been preserved by the Company as per the
statutory requirements for record retention.

3. As required by Section 143(5) of the Act, we have
considered the directions issued by the Comptroller
and Auditor General of India, the action taken thereon
and its impact on the accounts and Standalone Financial
Statements of the Company in " Annexure C".

For RAO & EMMAR

Chartered Accountants
Firm Registration Number: 003084S

B J Praveen

Partner

Membership Number: 215713
UDIN: 25215713BMJHNV1362

Bengaluru
08 July 2025