Your Directors take pleasure in presenting this Integrated
Annual Report and the Audited Financial Statements for the
financial year ended 31 March 2025 together with the reports
of the Statutory Auditors and the Comptroller and Auditor
General of India thereon.

Financial Results and Performance Highlights

Financial results and performance highlights of the Company
are summarised below:

Distribution of Value of Production for 2024-25 is
given below:

The Company's turnover for FY 2024-25 increased to
' 23,02,410 Lakhs from ' 19,81,993 Lakhs in FY 2023-24,
registering a growth of 16.17%. The Profit After Tax (PAT)
for FY is ' 5,28,825 Lakhs as compared to ' 4,02,000 Lakhs
in the previous year. Turnover from indigenously developed
products was 74%. Contribution for Defence supplies was at
94% of the turnover in FY 2024-25.

Dividend

In pursuant to Regulation 43A of the SEBI (LODR) Regulations,
2015, the Board of Directors of the Company formulated a
Dividend Distribution Policy keeping in view the provisions
of the SEBI (LODR) Regulations, 2015, the Companies Act,
2013, Guidelines issued by the SEBI, DPE, DIPAM, Ministry
of Finance and other Guidelines to the extent applicable to
the Company. The Policy is placed on the Company's website
at https://bel-india.in/wp-content/uploads/2023/01/Board-
approved-Dividend-Distribution-Policy.pdf

Our consistent performance and long-term value creation have
been reflected in the quantum of Profits/Reserves distributed
to Shareholders by the Company. The Board of Directors has
recommended a final dividend of ' 0.90/- per equity share
(90%), amounting to ' 65,788 Lakhs for the year 2024-25.
The interim dividend of ' 1.50 per equity share (150%) has
been paid to the shareholders for the financial year 2024-25.
Thus, the total dividend for the year 2024-25 is ' 2.4 per equity
share (240%), amounting to ' 1,75,435 Lakhs.

Transfer to Reserves

An amount of ' 40,000 Lakhs has been transferred to General
Reserves for the financial year 2024-25.

Share Capital

The Company's authorised capital was ' 75,000 Lakhs
(7,50,00,00,000 equity shares of ' 1/- each) and paid-up share
capital was ' 73,098 Lakhs (7,30,97,78,829 equity shares of ' 1/-
each fully paid-up) as on 31 March 2025. There was no change
in the authorised/paid-up share capital of the Company
during FY 2024-25.

Major Orders Executed

Weapon Systems, Electronic Warfare & Avionics Systems,
Radar & Fire Control Systems, Communication Systems,
Command & Control Systems, Anti-Submarine Warfare
Systems, Tank & Gun Upgrade, Electro-optic Systems, Arms
& Ammunition, Home Land Security Systems etc.

Exports

Your Company has been exporting various products, systems
and services to a number of foreign countries. Your Company
has been giving enhanced thrust towards addressing the
export opportunities in defence and non-defence areas and
this has resulted in achieving all time highest export sales of
USD 106.17 Million in FY 2024-25 compared to USD 92.98
Million in FY 2023-24. Some of the countries to which your
Company has exported its products and systems are France,
Spain, USA, UK, Israel, Sweden, Mauritius, Armenia, Sri Lanka,
Seychelles, and SEZs. The major products/systems exported
include Radar Warning Receiver, Missile Approach Warning
System, T R Modules, Data Link II, Coastal Radar Systems,
Mechanical Parts, Communication Equipment, EO System,
Upgradation of Sonar, Software, Services, etc.

Increase in export sales was mainly due to the concerted
efforts and new initiatives taken by your Company. Continuous
interactions with prospective foreign OEMs & Customers,
proactive offering of products, systems and services,
development of customised solutions, offerings of products in
new defence and civilian segments, interactions with MEA and
MoD undertaking and completing on-time delivery of projects
have resulted in increased export sales. More efforts have
been directed towards providing new/customised solutions
and efficient support/services to the customers.

During FY 2024-25, your Company has acquired export orders
worth USD 54.16 from countries like France, USA, Sweden,
Sri Lanka, SEZ, etc. Your Company has export order book of
USD 348.46 Million as on 1 April 2025. Over the years, your
Company has established long term relationships with current
and prospective customers.

Along with Defence, your Company is also exploring
opportunities for civilian products and solutions in developed
and developing countries in the areas of Artificial Intelligence
(AI), Software Applications, Vacuum Interrupters, Civil
Aviation Radars, Critical Infrastructure Protection, Solar
Power Solutions, Electronics System Design & Manufacturing
Services, etc.

Your Company is also focussing on various opportunities in
Offset Business from foreign OEMs. Your Company is also
closely working and partnering with various major foreign
Aerospace and Defence Companies by offering products and
systems to meet their specific requirements. Your Company
has identified Contract Manufacturing (Build to Print and Build
to Spec) and Transfer of Technology absorption for Make in
India and sell global as emerging export opportunities.

Further, efforts are put in to establish long-term supply chain
relationships with Indian and global OEMs. In this regard, your
Company has offered various products and services to major
Platform OEMs and their Tier-I suppliers. Your Company has
also offered complete solutions globally in partnership from
India OEMs. This has helped your Company in leveraging
partnership for co-development, co- production, transfer of
technology, and similar arrangements with various OEMs to
undertake manufacturing of their products at your Company's
facilities and utilisation of services of your Company not only
for Indian programmes but also for their global requirements.

Persistent efforts by your Company have resulted in acquiring
new customers from geographical locations such as USA,
Europe and SEZ - India. During the year, new proposals for
Radar, Gun and Tank Upgrades, Antenna with Pedestals, Radar
Sub-Assemblies, Fuzes, Avionics, Shelters, Communication
equipment', Avionics and EW systems, C4I etc. were submitted
to global customers and foreign ministries. Your Company
has established itself as a part of global supply chain of M/s
Thales, SAAB, Elbit Systems, etc.

Actions by your Company to enhance exports are as follows:

a. Major initiatives undertaken

• Emphasis on Make & "Sell Globally" approach.

• Co-development/Co-production of products with
foreign OEMs.

• Transfer of Critical Technology.

• Efforts to achieve "Single Vendor" status by offering
customised solutions / products.

• Collaboration with Indian and Global OEMs to offer
complete platform solutions to foreign customers.

• Establishing long term supply chain agreements with
global OEMs.

• Focus on big programmes (Radar Systems, C4I, Gun/
Missile Systems/ Tank & Gun Upgrades etc.).

• Partnership with foreign local industries for entering
new global markets.

• Offering new products in new geographical locations.

• Leveraging the reach of Channel Partners.

b. Following products and systems have been
offered to foreign countries/customers:

• Weapon Locating Radar

• Avionics Systems

• Communication Equipment

• Naval Products and Systems

• Coastal Radar System

• Ship Upgrade, Tank & Gun Upgrade

• Electronic System Design & Manufacturing

c. Interactions were held with the following major
international customers (OEMs):

• General Atomics, USA

• Boeing, USA

• Dynapar, USA

• SVT Group, Czech Republic

• Lockheed Martin, USA

• Airbus Defence & Space, Spain

• Terma, Denmark

• Elbit Systems, Israel

• IAI, Israel

• Thales, France

• SAAB, Sweden

d. Interactions were held with the following
international customers (Defence Forces/
Ministries):

• Ministry of Defence, Armenia

• Seychelles Peoples Defence Forces

• Ministry of Defence, Oman

• Ministry of Defence, Columbia

e. Following were the major products exported
during FY 2024-25:

• Radar Warning Receiver

• Missile Approach Warning System

• T R Modules

• Data Link II

• Coastal Radar Systems

• Medical Mechanical Parts

• Communication Equipment

• EO System

• Upgradation of Sonar

• Software Services, etc.

MoU with the Government

Your Company has been signing a Memorandum of
Understanding (MoU) every year with the Ministry of Defence,
Government of India based on guidelines issued by DPE.
Performance of the Company for the financial year 2023-24
has been rated as "Excellent". The MoU rating for FY 2024-25
is under review by the Government.

Order Book Position

The order book of the Company as on 1 April 2025 is around
' 71,650 Crore. The order book comprises major programmes
like Electronic Warfare & Avionics Systems, Radar & Fire
Control Systems, Communication Systems, Weapon Systems,
Command & Control Systems, Tank & Gun Upgrade, Arms &
Ammunition, Anti-Submarine Warfare Systems, Electro-optic
Systems, Home Land Security Systems etc.

Finance

We are happy to inform you that your Company has continued
to maintain its growth momentum during FY 2024-25. Your
Company's top line has grown by 16.17% to ' 23,024 Crore
as compared to previous FY 2023-24. Our technological
capability coupled with "Aatmanirbhar Bharat' initiatives
of Govt. of India and growing opportunities in exports has
helped the Company to achieve significant milestones during
the current year. BEL's PBT has grown from ' 5,335 Crore to
' 7,090 Crore an increase of 32.91%. Similarly, PAT has grown
by more than 30% to ' 5,288 Crore. Our Earnings per Share
EPS for the year 2024-25 has increased to ' 7.23 from ' 5.50.

Your Company continues to invest in R&D and Capex which
helps the Company to maintain its competitive advantage
over its domestic and international competitors. We have
invested to the tune of ' 1,472 Crore during the current year
in several R&D projects, which works out to 6.4% of turnover.
Similarly, in line with our growth strategy we have invested
more than ' 908 Crore during the current year in Capex.

Our working capital continues to remain healthy, Inventory
and Trade receivables as at the end of FY 2024-25 works out
to 139 days of Value of Production and 144 days of Turnover
respectively. We are able to meet Capex and Working Capital
requirement entirely through Internal Accruals. We continue to
remain Debt Free. BEL's Net worth in FY 2024-25 has increased
to ' 19,697 Crore and corresponding Book Value per share has
increased from ' 22.00 to ' 26.95. Our performance across
all financial metrics be it Turnover, Profitability, Investment in
Capex and R&D have continued to show an improving trend
during the current year.

Deposits

The Company does not have any Public Deposit Scheme
at present. However, the matured Public Deposit amount
(collected prior to February 2006) with the Company was
' 36.95 Lakhs as on 31 March 2025. Out of this, 34 deposits
amounting to ' 36.50 Lakhs have not been claimed or have
not been paid as these accounts were frozen on the advice of
the Karnataka Lokayukta. The remaining matured deposits of
' 0.45 Lakhs as on 31 March 2025 is unpaid due to insufficient
documents/records produced by the Depositors.

Research & Development

BEL's Research and Development (R&D) philosophy is to
enhance its pre-eminence in products/services for Defence and
Professional Electronics through Research & Development.
BEL's R&D strives for the development of new products built
with cutting-edge technology modules. While fully meeting
the customer requirements, the products developed by the
Company are state-of-the-art, competitive and incorporate
the highest levels of quality.

R&D has been one of BEL's core strengths which is being
enhanced through in-house and collaborative R&D modes.
Various divisions of BEL are involved in the development of
Strategic Components, Technology Modules, Subsystems,
Products, Systems and Systems of Systems.

BEL has a Three-Tier R&D structure, namely Central
Research Laboratories (CRLs); Product Development and
Innovation Centre (PDIC) & Centres of Excellence (CoEs);and
Development and Engineering (D&E) groups attached to
Strategic Business Units (SBUs)/Units. All the R&D/D&E
centres of BEL, as recognised by the Department of Scientific
& Industrial Research (DSIR), function at multiple locations
across India. D&Es are located at each of the SBUs and
Units namely Bengaluru, Chennai, Ghaziabad, Hyderabad,
Kotdwara, Machilipatnam, Navi Mumbai, Panchkula and
Pune. PDIC and CoEs are located in Bengaluru while CRLs
are located in Bengaluru and Ghaziabad. The D&Es/PDIC/
CoEs/CRLs work in the identified technology and product
areas, based on three-year R&D plans and after due approval
of budget/time by the competent authority.

The D&E groups at SBUs/Units provide Systems and System
of Systems solutions to the end users. Towards this, they get
necessary technology modules and subsystems developed
through CRLs, PDIC, CoEs and collaborative R&D partners.
They conduct all evaluations and trials needed in the process
of inducting these systems into service. They also extend
technical support during the entire product life-cycle, and
upgrades and also take care of obsolescence management.

Apart from in-house efforts, BEL R&D Engineers collaborate
with DRDO, ISRO, CSIR, other Research Laboratories, National
and International Academia, Research Institutes, OEMs/
Industries, Experts/Consultants, MSMEs and Start-ups in niche
technology areas. BEL has created an ecosystem to co-create
products/solutions in many business segments.

D&E Projects Initiated During FY 2024-25: Several R&D
projects have been initiated during FY 2024-25 both through
in-house development and collaborative efforts (mainly with
DRDO). Major projects initiated during FY 2024-25 are Radars
for Kusha Weapon System, ADTCR - Sky Shield, Kavach
System, Autonomous Surface Vessel - Mine Counter Measure
(ASV-MCM), Anunaad - Advanced Integrated Submarine
Sonar Suite, BSS Roll-out, Multi-Function Radar, Network
Elements for TCS Program, Foliage Penetration Radar, WLR
- AESA (X).

D&E Projects Realised During FY 2024-25: Some of the
major projects realised/completed during FY 2024-25 are
Engineering Improvements of D4 System, AD Gun Training
Simulator, Decoy System for AMS, Himshakti (COM Segment),
X Band DWR (SSPA Based), QT Model for Sarang, MSSR
Mk-XIIA, CMS Test-Bed, Super-SCADA for DMR, CBRN
HAZMAT Vehicle

Important R&D Awards/Recognitions Received
During FY 2024-25:

• I ETE Awards - 2024: NV Gadadhar Memorial Award and
Young Scientist Award.

• Elets Technology Excellence Award 2024: AI-powered
Digital Agriculture Platform with FPO Automation
(Technology Excellence).

• PSU IT Awards, New Delhi, 2024: Excellence in Software
Development, Employee Training & Development.

• SIDM Champion Award-2024 from Raksha Mantri: Import
Institution for the development of Thermal Imager
Technology Modules for T90 Tanks.

• ilouge Media 3^rd PSU Transformation Conclave & Awards:
Innovative Product Development Award for Air Defence
Simulation and Evaluation System (ADSES).

• Aerospace Defence Awards 2025: Outstanding Contribution
to Naval Systems.

• PSU Governance Now Award 2024: Excellence in R&D
Initiative & Excellence in Innovation.

• Manufacturing Today Award 2024: Excellence in Innovation
& Excellence in Technology.

New Products Developed Through In-house
Development Efforts During FY 2024-25 are:

• Photonic Transmitter and Receiver for Atulya (ADFCR) Radar

• NMS software for SDR

• Air Traffic Management System for Civil Airports

• GIS Display for FMRH (VHF Radar).

• 3.1 - 3.5GHz 150W GaN Amplifier.

• Missile Check Facility Computer for QRSAM Radar.

• DVB-S2x Modem Waveforms.

• RFSoC based 3U VPX based baseband processing module.

• Electro Optical Imaging Intelligent and Stabilised System
(EOIISS).

• 2 KW Fibre Laser source.

• RF - based SP for AMDR (2D).

• Digital Beam Former (64 channel) Hardware & Software for
AMDR (3D)

New Products Developed through Collaborative
Development Efforts During FY 2024-25 are:

• LRSAM & MFSTAR sub-systems for P17B/P17A.

• C Band 25 W GaN RF Device.

• Ferroelectric based Thin Film for tunable capacitors

Future Plan of Action: BEL will enable scaling of R&D for
innovative Products / Services across the organisation to
align with the objective of growth and transformation. All
the tiers of R&D (D&Es, PD&IC, CoEs and CRLs) will continue
to collaborate in identifying new areas of development and
complementing each other in addressing the requirements
through in-house and collaborative modes of development.
BEL plans to continue investing in R&D for meeting the
continuously evolving requirements of its customers as well as
for diversification. While a major thrust would be given for in¬
house development, collaboration with national laboratories,
academic institutions, research institutes, industry and MSMEs
will also continue to be strengthened. Focussed technology/
product development efforts have been initiated in diversified
areas like Arms & Ammunition, Smart Agriculture and AI-
based projects including Predictive Maintenance. BEL has
consistently been investing about 7% of its annual revenue
every year in R&D and will continue to support R&D initiatives
for enabling an Atmanirbhar Bharat, making & delivering high-
quality defence & professional electronics products, systems
& solutions for India and the world.

New Facilities Established

Infrastructure enhancement is one of the major objectives
of the Company in order to stay upgraded for global
opportunities and to be the best in business. During the
year 2024-25, the Company has spent around ' 908 Crore as
part of CAPEX investment towards modernisation of Plant &
Machinery, Test instruments, R&D investments, Infrastructure
up-gradation etc. Following are some of major facilities were
established during FY 2024-25:

• New Li-ion Battery integration & Testing facility at
BEL, Pune.

• New Assembly line for Electronic Fuzes at BEL, Pune.

• RPSC at Agra.

• Software development Centre at Vizag & New Delhi.

• RPSC at Bhatinda.

Information Technology (IT) Initiatives:

All SAP applications like ERP, File Lifecycle Management and
Employee Self Service have been migrated to new hardware.
For ERP, Supplier Relationship Management, Customer
Relationship Management and Business Intelligence
applications, the Database has been migrated from Oracle
to HANA which is an in-memory database. This migration has
resulted in significant performance improvement.

In the SAP system, IS/CO has implemented Automation &
Mass payment process, Agreement Management System,
Material Loan process, New RMA process, Digitization of
Quality Champion Award and Green Wave Revolution for
ESG System.

Cyber Security Initiatives:

• Cyber security threats are continuously growing on BEL
IT infrastructure. Innovative, sophisticated techniques &
tactics are being deployed by adversaries for breaches &
data exfiltration. To mitigate and keep a check on such risks,
Cyber Defence Center (CDC) is established as dedicated
centralized facility to monitor, improve the organiza¬
tion's cyber security posture while preventing, detecting,
analyzing, and responding to cyber security threats in BEL.
CDC is built on layered security approach (defense-in¬
depth) and continuously getting augmented with latest
tools & technologies for main-taining the cyber resiliency.

• To further strengthen the cyber security preparedness, BEL
Security Operation Center (SOC) is integrated with MoD
CSOC. As part of integration, two log collector appliances
are installed in BEL and logs of security appliances such as
perimeter Firewall, Web Proxy, Email Gateway, DNS servers

etc. are forwarded to these installed log collectors. This
setup has facilitated real time integration with MOD Threat
Intelligence Platform for automated blocking of Indicators
of Compromises (IOCs) at perimeter Firewall. As part
of the project CHAKRA VYUH Server is also installed for
monitoring & managing internet facing endpoints installed
with MAYA OS.

• For access for BEL's Internet mail from outside of BEL
premises, new Grid-based au-thentication method has
been implemented. This is a Make-in-India product that ad¬
dresses the security requirements without any dependency
on third party hardware (like hardware tokens, smart¬
phones, mobile networks for SMSs, OTPs and agent in¬
stallation on user devices). Though the registered PIN and
Target number is fixed, grid pin will be changing on each
login to avoid the risk of credential compromise.

• Centralized Internet Gateway was established for uniform
deployment of cyber security policies across all BEL units.
Secure web gateway (SWG) was deployed to further up¬
grade, streamline and enforce the granular policies on
internet access. The objectives of deployed secure web
gateway are to filter internet traffic, enforce security
and ac-ceptable use policies, and protect users and
organizations from online threats. Web gateway scrutinizes
every outgoing web request from user system, ensuring
requests do not breach set policies and only permitting
them if deemed safe. Similarly, incom-ing data is inspected
before reaching users. Web Gateway ensures safe internet
access, prevent malware from reaching corporate Network
and shield organization from po-tential data breaches.

• Total Business Data resides in SAP's HANA Database which
is deployed with Secure configuration and hardening.
Access control to Database is possible only through
SAP application. Support patches released by SAP are
regularly applied. Granular access control of User Roles and
authorizations is enabled based on the principles of least
privilege, need-to-know basis and Segregation of Duties.
Audit trail log is enabled for all Users. Entire infrastructure is
subject to Annual VAPT from CERT-in empanelled agency.
Daily automated backup is enabled. Three way Disaster
Recovery (DR) system is deployed with Primary, Secondary
site (Near DR) in BEL Bangalore and Far DR site at BEL
Hyderabad. Synchronous replication is enabled between
Primary and Near DR sites with auto failover capabilities
ensuring Business Continuity.

• BEL has adopted Virtual Desktop Infrastructure (VDI) to
avoid storing of Data on PCs and enhancing Information

Security. PCs with Windows OS are inherently vulnerable to
malware, viruses, worms, data leakage and other Security
vulnerabilities. These is-sues have been overcome by
the implementation of centralised VDI and replacing
or converting End Point PCs to Thin Clients. The Data
Centre facilities of Units have been upgraded for hosting
VDI. Separate VDI has been commissioned for intranet
and In-ternet. VDI Intranet Data are now stored in Data
Centres in encrypted form. Central-ised security policies
and Security patching are enforced centrally for the entire
infra-structure.

Quality

Quality, Technology, Innovation are three guiding pillars of
BEL's Business initiatives. Quality being the first pillar, has
been one of the focus area for the company. The company
is committed for continual improvement through process
approach in line with World-Class Quality Systems. All
Units/Strategic Business Units (SBUs)/ Common Services
Groups (CSGs) are accredited to AS9100D/ISO 9001 Quality
Management Systems (QMS). All Units/SBUs of the company
are committed to Environment Management System through
ISO 14001 Std and Occupational Health Safety Management
System through ISO45001 Std. 14 Units/SBUs/Divisions of the
company are certified for Information Security Management
System (ISMS) ISO 27001. Test Equipment, Calibration and
Maintenance Divisions of Bangalore Complex, Ghaziabad,
Panchkula, Chennai, NAMU and Hyderabad Units (Total 13
Labs) are certified by NABL in accordance with ISO/IEC 17025
Standard. Software SBU is certified for CMMi level 5 and also
for ITSMS ISO 20000-1. NCS & DCCS SBUs of Ghaziabad, CRL-
GAD, Chennai and Hyderabad Units are certified for CMMi
Level 3. BAE and BEEI are certified for EOMS ISO 21001.

Some of the significant achievements in 2024-25 on Quality
area front are: BEL received additional Green Channel Status
for 3 Products from Ghaziabad Unit, 3 Products from Panchkula
Unit & 5 Products from Chennai Unit during the year 2024-25.
With this, BEL now has 28 certificates for 86 Products across
13 SBUs/Units. EW- LS Hyderabad was certified for AFQMS
and As9100D for first time. Panchkula & Chennai Units are
certified with ISO27001:2022 for first time. Ghaziabad unit was
certified for Energy Management System (EnMS) ISO 50001.
Chennai, Hyderabad Pune & Navi Mumbai units were certified
combined Standards ISO 1400 & ISO45001.

BEL Quality continued to win several Awards & Accolades
during 2024-25. BEL Panchkula Unit received the coveted CII
Exim Bank "Business Excellence Award for 2024", similarly
BEL Pune Unit received the Platinum Award. BEL received
the prestigious "Golden Peacock" award for Quality from

the Institute of Directors (IOD). Bangalore Complex and
Ghaziabad units received National Safety "Kalinga Award"
from IQEMS. BEL also received "Governance now PSU Award"
& "PSU Transformation Award" for Digital transformation in
the area of Quality.

As part of quality initiatives, a Web based Inspection and
Quality Assurance Software (WIQAS) developed by BEL is a
complete Digital Solution streamlining the QA process across
DGQA Units and Defence Industries.

Fifty Four products were identified for Hybrid QA 4.0
implementation by September 2025. WIQAS software for
Navy developed and deployed, version for Airforce and Army
taken up.

The Company has facilitated involvement of employees in
the Quality Movement through Quality Control Circle (QCC).
During the year 596QCC presentations are made by various
QCC Teams. Many QCC teams are nominated for national
competitions and all are adjudged for various categories
of Awards. QCC Pragati Team from Kotdwara and Anubhav
team from Panchkula Unit have participated in ICQCC 2024
conducted by Sri Lanka, and both teams won Gold awards.
Around 5017 suggestions are awarded in FY 2024-25. A total
savings of '95.36 Crore was achieved through this Suggestion
Scheme implementation in various process improvements
during this year.

During the year 17 Executives from various Unit/SBUs are
certified as "Certified Quality Engineers (CQE)" from ASQ. 13
Executives from various Unit/SBUs are certified as "Certified
Reliability Engineers (CRE)" from ASQ. 31 Executives got
certified as "Project Management Professional (PMP)" from
PMI USA. 18 mid-level and senior executives are certified as
"Certified Data Analytics (CDA)" by Indian Statistical Institute
(ISI), Bangalore.

Total 164 Six Sigma Projects have been completed during the
year 2024-25, resulting in an estimated savings of ' 7,037.97
Lakhs to the company.15 BEL Six Sigma teams participated
in regional level competitions CCQC-2024 organised by
QCFI and all 15 teams won highest award "GOLD". 14 BEL
Six Sigma teams participated in National level competitions
NCQC-2024 organised by QCFI and all 14 teams won highest
award "PAR Excellence".

ADSN SBU from Bangalore Complex won the First Prize,
Panchkula Unit, Antenna SBU of GAD won second and third
prizes respectively in companywide Quality Recognition
Award (QRA) 2024. Innovation teams from EM, Components
Software & ADSN Teams won Gold & Silver Awards in CII
Digitalisation, Low Cost Automation implementation.

Quality Champion is a new flag ship award introduced this
FY 2024-25 and conferred to three executives of the company
for their extraordinary involvement and dedication towards
Quality improvement in the Organisation.

This year also the company conducted the Integrated
Customer Satisfaction Survey, and the Satisfaction Index is
85.67 with a net promoter score of 64.37 which is very good
in comparison with bench mark companies.

The company aiming the comprehensive Digital
Transformation, implementation of Industry 4.0 for best
Productivity, and to achieve higher growth rate in the
coming year.

Human Resources

Your Company employed 8,844 people as on 31 March 2025
compared to 8,937 people as on 31 March 2024. Out of these
employees, 5,420 were engineers/scientists and 1,951 were
women employees. A total of 478 employees were inducted
during FY 2024-25. 81 employees belonging to the Scheduled
Castes (SC), 27 employees belonging to the Scheduled Tribes
(ST), 180 employees from the Other Backward Classes (OBC),
22 employees belonging to the Minority Community and
6 Physically Challenged employees were inducted during
FY 2024-25.

Your Company has been complying with the Government
directives on reservations. The particulars of SC/ST and other
categories of employees as on 31 March 2025 are as under:

Various training programmes were conducted during the year
to enhance competencies in Technical, Functional, Managerial
and Leadership areas. Structured Executive Development
Programmes were conducted regularly with premier institutes
to meet the evolving training needs of executives as they
progress through various grades. A detailed write-up on
HR initiatives during the year is provided separately in the
Management Discussion and Analysis Report, which forms a
part of this report.

Disclosure Under Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal)
Act, 2013

The Company is an equal-opportunity employer and
consciously strives to build a work culture that promotes the
dignity of all employees. As required under the provisions of
the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the rules framed
thereunder, the Company has implemented the policy on
prevention, prohibition and redressal of sexual harassment at
the workplace, which has been uploaded on the Company's
intranet portal. All women, permanent, temporary or
contractual, including those of the service providers, are
covered under the Policy.

An Internal Complaints Committee has been constituted in
each of the nine constituent units, including the corporate
office to redress complaints relating to sexual harassment.
Awareness programmes were conducted across the Company
to sensitise employees and uphold the dignity of their
colleagues at the workplace, particularly with respect to the
prevention of sexual harassment. The details of the complaints
filed, disposed of and pending during the year pertaining to
sexual harassment are provided in the Business Responsibility
and Sustainability Report, which forms a part of this report.

Awards and Accolades

Your Company strives to achieve the highest level of quality
in all its products by considering consumer insights and by
reaching out to consumers. During the year, your Company
has received the following various Awards and Accolades:

• BEL Panchkula Unit received the coveted CII EXIM Bank
'Business Excellence Award for 2024'.

• BEL Pune unit received the 'Platinum Award' and BEL
Bengaluru Complex was recognised as a "Winner"
by the Confederation of Indian Industry (CII) for the
sustainable initiatives.

• Outstanding Contribution to Naval Systems Award'.

• 'Kalinga National Safety Platinum Award'.

• 'PSU Transformation Awards 2024'.

• ' Indian Chamber of Commerce (ICC) PSE Excellence
Awards'.

• "Special Jury Supplier Award" from Thales Group.

• BEL bagged three Awards at "PRCI Global Conclave 2024".

• 'Risk Management Leadership Award'.

• 'Digital Transformation Award'.

• 'Green Initiative Award'.

• 'Innovative Product Development Award'.

• 'Digital Champions Award for Document Management'.

• 'Climate Action Champion Award'.

• Silver Award for 'Implementation (Digitisation) of Employee
Self-Service' in Economic Times PSU Leadership &
Excellence Awards 2024.

• Elets Technology Excellence Award 2024.

• SCOPE Excellence Award for Digitalisation.

• National Export Excellence Award.

• 'Governance Now Award for Excellence in Digital
Procurement, Reskilling of Employees, R&D, HR & Finance'.

• 'SIDM Champion Award'.

Subsidiaries, Joint Ventures and Associates

BEL Optronic Devices Limited (BELOP) is a wholly-owned
subsidiary of BEL, which manufactures Image Intensifier.
BELOP achieved a turnover of ' 18,325 Lakhs for the year
compared to ' 12,645 Lakhs in the previous year. The Profit
After Tax (PAT) for the year was ' 2,068 Lakhs compared to
' 1,659 Lakhs in the previous year.

BEL-THALES Systems Limited (BTSL) is a subsidiary of BEL.
Your Company holds 74% of the equity capital in BTSL. During
the year, BTSL recorded a turnover of ' 11,747 Lakhs compared
to ' 9,368 Lakhs in the previous year. The Profit After Tax (PAT)
for the year was ' 476 Lakhs compared to ' 277 Lakhs in the
previous year.

GE BE Private Limited is Associate Company of BEL. Your
Company holds 26% of the equity capital in GE BE Pvt. Ltd.
GE BE Pvt. Ltd. recorded a turnover of ' 1,80,621 Lakhs for the
year compared to ' 1,71,833 Lakhs in the previous year. The
Profit After Tax (PAT) was ' 13,739 Lakhs for the year compared
to ' 16,184 Lakhs in the previous year.

The Defence Innovation Organisation (DIO) is a 'Not for Profit'
Company as per the provisions of Section 8 of the Companies
Act, 2013 with an authorised share capital of ' 1 Crore. With an
equity participation of 50% from BEL and 50% from HAL, the
Company was formed with the objective of funding innovation
in the Defence sector.

Pursuant to the provisions of Section 129(3) of the Companies
Act, read with Rule 5 of Companies (Accounts) Rules,
2014 (as amended), a separate statement containing the
salient features of the financial statement of Subsidiaries/

Associate/ Joint Ventures in Form AOC-1 is appended to the
Financial Statements.

Further, pursuant to the provisions of Section 136 of the Act, the
financial statements of the Company, consolidated financial
statements along with relevant documents and separate
audited financial statements in respect of subsidiaries, are
available on the website of the Company www.bel-india.in.

Consolidated Financial Statements

Consolidated Financial Statements of your Company and its
Subsidiaries for the year ended 31 March 2025 have been
prepared in accordance with the provisions of Section 129(3) of
the Companies Act & applicable Indian Accounting Standards
and forms part of this report.

Vigilance

The Company's Vigilance Organisation is headed by Mr
Nilabhra Sengupta, IRSSE, Chief Vigilance Officer (CVO)
appointed as CVO / BEL on 02.12.2024. Full time Vigilance
Officers posted in Units / SBUs are handling vigilance activities
in the Units / SBUs. Vigilance Committees are formed to look
after the Vigilance Administration in the Units / SBUs. The
Unit/SBU Heads are designated as Chairman of the Vigilance
Committee. Preventive Vigilance has been the thrust area
of the Vigilance Organisation and the same received focus
during the year 2024-25. The Vigilance Department examines
procurement processes on continual basis, conducts regular
and surprise inspections and investigates instances of
any suspected transactions referred to it. An employee
or third parties can bring any suspected transaction to the
notice of CVO for investigation which is examined as per
the Complaint Handling Policy of the Company. Online
Complaint Management System has been made operational
and complaints can be filed by accessing the Vigilance Portal
in BEL website.

During the year, 3,011 Purchase Orders/ Contracts (>'25
Lakhs) have been reviewed by field Vigilance Officers.

Five Intensive Examination (IE) teams have been formed for
conducting CTE Type Intensive Examination. 60 High value
Procurements Contracts has been taken up by the IE Teams
during the year 2024-25.

Regular and Surprise checks and Inspections have also been
conducted by the field Vigilance Officers.

46 Complaints were received and 43 were disposed.
Disciplinary action and system/process improvement
have been recommended in some cases where lapses
were observed.

107 Executives (including TC Personnel) & 17 Non-Executives
working in sensitive areas for more than 3 years have
been rotated.

Vigilance Department has been certified for ISO 9001/2015
Certification for the Vigilance function of BEL.

In line with the CVC's guidelines on Leveraging Technology and
to ensure transparency through effective use of technology,
the following functions have been made operational through
SAP and the Company's website:

• E-Procurement.

• Online registration of Vendors.

• Vendor Payment Information System.

• E Payment/Bank transfer of payment to Vendors.

• Details of awarded Contracts/Purchase Orders valuing
more than ' 10 Lakhs in respect of works contracts, service
contracts, capital items and non-production items have
been posted in the website.

• Details of awarded Contracts/Purchase Orders issued on
nomination / single tender basis value exceeding ' 5 Lakhs
are posted on the website.

• Corruption Risk Management Policy is framed and
implemented across the Company.

• Vendors' Directory is maintained.

• File Life Cycle Management System (FLM) is fully
implemented across the company.

• Online filing of APRs is facilitated in SAP for all the
Executives and the Executives have been filing the APRs
in SAP.

• Vigilance Monthly and Quarterly Reports are generated
through SAP

• Vigilance clearance is accorded through the dedicated
Vigilance portal in SAP.

Vigilance setup in BEL has been continuously endeavouring
to bring transparency, fairness and equity in all transactions
and processes of the company through creating a sense of
awareness on Systems and Procedures through awareness
campaign and training programmes.

Key activities carried out during the year 2024-25:

A) Observation of Vigilance Awareness Week
2024:

Inauguration and Integrity Pledge taken:

BEL has observed Vigilance Awareness Week from 28
October to 3 November 2024 with the theme "Culture of
Integrity for Nation's Prosperity" at all Units/SBUs/Offices
across the country. Capacity Building Programmes
under three months campaign, competitions, outreach
programmes, gramsabha, guest lectures, seminars,
workshops, training on Vigilance Awareness, Vigithon,
Walkathon, Marathon, Street Plays, Storytelling Sessions,
Vendors Meet and other programmes were conducted
on the occasion.

Distribution of Pamphlets/Banners/Slogans/Standees
on Vigilance:

Display of Banners, Boards near the Entrance Gate of all
the 9 Units of BEL and in various Schools and Colleges
wherever Awareness Week programme was conducted.
Pamphlets on Integrity Pledge were made and distributed
among Employees, Executives and Contract Personnel.
Display of Banner during the Week at prominent places
like Lalbagh Botanical Garden, Kanteerava Stadium, BEL
Circle, Doddabommasandra Arch and Nanjappa Circle,
BEL Institutions, BEL Hospital, BEL Thales Systems Ltd.,
BEL Kalakshetra, Central Research Laboratory, PDIC
in Bengaluru.

Outreach activities:

1. Vigilance Awareness Programmes were held
at Govt. First Grade College, Yelahanka, Govt.
Polytechnic, Arakere, Srirangapatna, Mandya
and Jawahar Navodaya Vidyalaya, Bagalur,
Bangalore. Around 500 students attended the
programme. Essay writing, Slogan writing, Quiz
and Poster competitions were conducted and prizes
were distributed.

2. Vigilance Awareness Programme was held
for residents of Sumadhura Mathrushree
Residency Apartment.

3. 2 Street Plays sensitising the public on
corruption were conducted at Lalbagh Botanical
Garden, Bangalore.

4. 3 Street Plays sensitising the public on corruption
were conducted at BEL Circle Bus Stop,
Doddabommasandra Market and Lake.

5. Marathon, Walkathon and Cyclothon events were
conducted for BEL Educational Institution students.

6. Vigilance Awareness Programme for Gram Sabha
was conducted at Govt High School, Bashettihalli.

7. "VIGITHON" was conducted by Vigilance Study
Circle, Bangalore Chapter at Kanteerva Stadium,
Bangalore. Various Bangalore based PSUs like
BEL, HAL, BEML, KIOCL, ITI were participated in
large numbers.

8. Live Direct Phone-in Programme on "Corruption
Control and Vigilance Awareness Week 2024"
was organised by DD Chandana TV channel.
Shri Keshava Raju H. S., AGM (Vigilance)/ BEL
participated as guest in the programme. He was
interviewed by the channel. He provided valuable
insights into vigilance practices and anti-corruption
initiatives. He shared about lodging complaints
through PIDPI. He answered to the queries by
public through phone during the programme.

9. Vendors Meet were organised in Bangalore
Complex, Ghaziabad Unit, Chennai Unit, Navi
Mumbai Unit, Pune Unit, Kotdwara Unit, Panchkula
Unit and Regional Office Kolkata.

As a part of Capacity Building Programmes - precursor

to VAW 2024, the following training programmes were

conducted during three months campaign period (16

August - 15 November 2024):

i) Ethics and Governance, ii) Cyber Hygiene and
Security, and iii) Procurement were conducted by
BAE for Bangalore Complex and through VC for
Other Units, iv) Conduct Rules, and v) Systems and
Procedures of the Organisation were conducted at
individual Units.

B) Vigilance Programmes and other Programmes

Organised in BEL:

1. As a part of Post Graduate Certificate in
Management course (PGCM) in supply chain
management, training on "Vigilance Overview",
"Overview of CVC Manual 2021 and BEL Vigilance
Manual 2023" and "Case Studies on Procurement"
for executives working in MM, Purchase and Finance
was conducted at BEL Academy for Excellence
(BAE), Bangalore.

2. As a part of Vigilance Induction Programme, a training
session was arranged for Probationary Engineers. It
includes talk by CVO as "Voice of Leader", training
on "Vigilance Overview and Structure", "Overview
of BEL Procurement, Purchase Procedure and Sub¬
Contract Procedure", "Salient Features of Vigilance
Manual, PIDPI Process and APR Filing", "Cyber

Hygiene and Security", "Ethics and Governance",
"Salient Features of RTI", "Preventive Vigilance"
and "Overview of BEL Procurement through Works
Contract".

3. Seminar on Cyber Hygiene and Security was
organised by Vigilance Study Circle, Bangalore
Chapter at BEL Academy for Excellence,
Nalanda, Bengaluru.

4. Story Telling Sessions were held on "Values and
Ethics through Folktales" covering ethics, honesty
and integrity, Ethical Leadership and Stage Play on
Punyakoti and Kannada Folk Song by students of
M/s. Dharithree Trust for senior management and
"Ethical and moral values" for BEL Educational
Institution students.

5. 1,448 Executives and 89 Non-Executives were given
basic awareness programme on Vigilance.

C) Vigilance Audit Conducted:

Second Surveillance Audit was conducted by M/s. TUV
SUD South Asia Pvt. Ltd. at Pune Unit, Corporate Office,
Bangalore Complex and Kotdwara Unit.

D) Annual Vigilance Meet 2024-25:

Annual Vigilance Meet 2024-25 was held at Lansdowne
(near Kotdwara) from 17.02.2025 to 19.02.2025. The
following talks/presentation was held during the meet:

1. Talk by Ms Kalyani Sethuraman, IRAS, CVO/ HAL on
various striking aspects of Vigilance investigation
into the irregularities by presenting case studies on
Civil Works and Bills Payable.

2. Talk by Brigadier Vinod Singh Negi from Garhwal
Rifles, Lansdowne on Vigilance activities in
Indian Army.

Vigilance Magazine "Jagriti" was released by CVO
during the meet.

Integrity Pact

One of the initiatives of the Central Vigilance Commission
(CVC) to eradicate corruption in procurement activity is
introduction of the Integrity Pact in large value contracts with
Government Organisations. In line with the directives from
Ministry of Defence and the Central Vigilance Commission,
your Company has adopted Integrity Pact with all vendors
/ suppliers / contractors / service providers for all Orders /
Contracts of value ' 300 Lakhs and above. The Integrity Pact
essentially envisages an agreement between the prospective

vendors / bidders and the principal (BEL), committing the
persons / officials of both sides, not to resort to any corrupt
practices in any aspect / stage of the contract. Only those
vendors/bidders, who commit themselves to such a Pact with
the principal, would be considered competent to participate
in the bidding process. Integrity Pact, in respect of a particular
contract, would be operative from the stage of invitation of
bids till the final completion of the contract. Any violation
of the same would entail disqualification of the bidders and
exclusion from future business dealings.

As recommended by the CVC, the Company has appointed Mr
Sanjay Kumar Srivastava, IAS (Retd.), Mr Rajiva Ranjan Verma
I.P.S (Retd.), Mr Ashwani Kumar, former CMD, Dena Bank for
monitoring implementation of Integrity Pact in the Company.

Procurement from Micro & Small Enterprises (MSEs)

Your Company has been providing increased thrust on
enhancing procurement from Micro & Small Enterprises (MSE)
and has been implementing Public Procurement Policy for
MSEs as per the guidelines/notification issued by the Ministry
of MSMEs. BEL has on-boarded on the TReDS Platform, GeM,
MSME Sambandh & MSME Samadhaan Portals complying
with Government guidelines.

The Company has conducted and participated in Vendor
Development Programmes for Indian vendors including
MSME/Start-ups on various occasions throughout the year.
BEL extends provisions as envisaged in Ministry of MSME
notifications, released from time to time, to MSME/Start-ups
in procurement.

BEL's procurement from MSEs is 34% of total Domestic
procurement during FY 2024-25 against the mandatory target
of 25% as per the Public Procurement Policy for MSEs.

Implementation of Official Language Policy

Your Company is committed to adhering to the Official
Language (OL) policy of the Government of India. During
2024-25, the Company has achieved targets prescribed in the
Annual Programme issued by Dept. of OL, Ministry of Home
Affairs (MHA), GoI to transact official work in Hindi.

OL Inspections: The First Sub-Committee of Committee of
Parliament on Official Language conducted OL inspections
of Central Research Laboratory, Ghaziabad on 20 November
2024 and Bengaluru Complex on 22 January 2025. MoD
officials conducted inspection of Ghaziabad Unit on 15
January 2025. Dy.Director (Implementation/South), Dept. of
OL, MHA conducted OL inspection of CO on 2 July 2024.
Corporate OL Inspection team conducted 06 inspections of
its subordinate Units/Offices in India and 1 overseas office.

Participation: OL teams of BEL participated in the 4^th All India
OL Conference and 02 Regional OL Conferences organised by
the Dept. of OL, MHA. Honourable Home Minister released
BEL Defence Electronic Glossary during the All India OL
Conference. Office Heads attended TOLIC meetings.

OL Programmes: All India BEL OL Conference was organised
in BEL Hyderabad on 28 February 2025. A competition on OL
Policy for the member offices of TOLIC (Undertakings) was
organised in Bengaluru. OLIC meetings, Hindi Workshops and
Technical Talks in Hindi were conducted by all Units/Offices.
Hindi Month and Hindi Day was observed during September
in all the Units and Offices of the Company.

Bilingualisation: All Units and Offices of the Company
including Corporate Office are issuing documents in bilingual
as per the Section 3(3) of Official Language Act, 1963. Usage
of Hindi is being encouraged in correspondence and on
computers. Individual orders under OL Rule 8 (4) were issued
to officers/employees who are having proficiency in Hindi to
do their complete work in Hindi. Also, a circular on creation of
Check Points under Rule 12(1) of OL Rules was issued.

Computerisation and Website: Updated information
pertaining to OL is being communicated through OL Portal
GARIMA introduced by OL Dept. of Corporate Office.
Quarterly progress reports from Units/Offices are being
received online in SAP. Hindi notings are being written in File
Life-cycle Management (FLM). Provision has been made to
open the Homepage of Company's website in Hindi also.

Training and Reporting: Roster is maintained for Hindi
language training and computer training which is updated
from time to time. As per the Roster, employees were
nominated for online training. Quarterly / half yearly reports
are sent to OL Dept., MHA, GoI, MoD, Hindi Teaching Scheme
and Town Official Language Implementation Committee
(TOLIC) as per schedule.

Incentives and Awards: Company has various lucrative
Incentive Schemes for doing original work in Hindi. These
schemes are named after renowed Hindi Litterateur which
carry cash awards from ' 2000 to ' 10,000. Employees
have participated in the TOLIC competitions and won
prizes. Corporate Office was awarded for excellence in
OL implementation by TOLIC (Undertaking), Bengaluru.
CMDs OL Shield for Excellence in OL implementation was
awarded to the subordinate units situated in A, B and C
region respectively.

Publications: Hindi Magazines were published by the Units /
Corporate Office to propagate usage of Hindi in the company.

New Initiatives: In order to propagate Hindi among
employees, a Linguistic Harmony Programme was organised
in which popular television serials were screened. The first BEL
OL Coffee Table book 'ATHAK' was published highlighting
OL implementation, new initiatives and achievements of
BEL. A dedicated section for OL has been introduced in the
Company's website. Defence Electronics Glossary of BEL is
prepared in coordination with the Commission for Scientific
and Technical Terminology (CSTT), Ministry of Education.
World Hindi Day was celebrated on 10 January and message
of Honourable Prime Minister was read out. As part of Krishna
Sobti Hindi Lecture Series, lectures were organised on general
interest and technical topics.

Continuous efforts are being made to ensure OL
implementation and for increasing progressive usage of Hindi
across the Company.

Implementation of the Right to Information Act,
2005

In consonance with the provisions of the Right to Information
Act, 2005 (the Act), your Company has well-defined
mechanism in place to address the provisions of the Act. Your
Company has a designated General Manager level officer as a
"Nodal Officer" to oversee the implementation. The requests
received are processed by 17 senior personnel designated as
"Central Public Information Officers (CPIOs)" including one at
Corporate Office and each at the Units/ROs. Your Company
has a designated General Manager level officer as a "First
Appellate Authority" to dispose of first appeals filed under the
Act. In compliance to Government directives, your Company is
successfully processing the applications under the Act, online.

The information to be provided as per Section 4(1) (b) of the
Right to Information Act, 2005 has been posted on the website
of company www.bel-india.in

The FAA, CPIOs and other internal stakeholders involved
are sensitised about their obligations under the Act through
training and workshops.

Your Company received 620 applications (including 56
transferred by other Public Authorities to BEL) during the
period from April 2024 to March 2025, and 38 RTI applications
were carried forward from year 2023-24. A total of 619
applications were responded to including 115 applications
that were rejected, out of a total of 658 applications. Your
Company received 91 First Appeals during the period, out
of which 86 were disposed-off. Quarterly RTI returns for all
the four (4) quarters have been submitted to the Central
Information Commission.

Directors' Responsibility Statement

To the best of their knowledge and belief and according
to the information and explanations obtained by them,
your Directors, in terms of Sections 134(3)(c) & 134(5) of the
Companies Act, 2013 state that:

a) in the preparation of the annual accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;

b) the Directors had selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company
as at 31 March 2025 and of the profit of the Company for
the year ended 31 March 2025;

c) the Directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and
detecting fraud and other irregularities;

d) the Directors have prepared the annual accounts on a
going concern basis;

e) the Directors ensured proper internal financial controls
were in place and such financial controls were adequate
and were operating effectively; and

f) the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws
were in place and the same were adequate and
operating effectively.

Integrated Report

The Company, has voluntarily provided an Integrated
Report, which encompasses both financial and non-financial
information to enable the Members to take well-informed
decisions and have a better understanding of the Company's
short, medium and long-term perspective. The Report also
touches upon aspects such as the organisation's strategy,
governance framework, performance and prospects of value
creation based on the six forms of capital viz. financial capital,
manufactured capital, intellectual capital, human capital,
social and relationship capital and natural capital.

Significant and Material Orders

There are no significant and material orders passed by the
regulators or courts or tribunals impacting the going concern
status and the Company's operations in future.

Events Subsequent to the Date of Financial
Statements

There are no material changes and commitments affecting the
financial position of the Company which occurred between 31
March 2025 and the date of signing of this Report.

Related Party Transactions

There were no materially significant related party transactions
with the Company's Promoters, Directors, Management or
their relatives, which could have had a potential conflict with
the interests of the Company. Transactions with related parties
that were entered into during FY 2024-25 were on an arm's
length basis and were in the ordinary course of business. None
of the transactions with related parties fall under the scope
of Section 188(1) of the Companies Act, 2013. All Related
Party Transactions are placed before the Audit Committee
and also to the Board for approval, if required. Members may
refer to the notes to the accounts for details of related party
transactions. The policy for related party transactions has
been uploaded on the Company's website www.bel-india.in.
Information pursuant to Section 134(3)(h) of the Companies
Act, 2013 read with rule 8(2) of the Companies (Accounts)
Rules, 2014 is attached to this report as Annexure-1.

Corporate Social Responsibility

Your Company has formulated a Corporate Social
Responsibility Policy pursuant to the provisions of Section 135
& Schedule VII of the Companies Act, 2013 and the Companies
(Corporate Social Responsibility) Rules, 2014 read with various
clarifications, amendments issued by the Ministry of Corporate
Affairs (MCA). The Corporate Social Responsibility Policy is
posted on the Company's website, www.bel-india.in. The CSR
activities undertaken by your Company are in-line with the
applicable Government Legislations & Guidelines issued from
time to time, directing CSR fund distribution, themes for CSR
expenditure, areas of operation etc.

Our Community Interventions focus on holistic development,
institution building and sustainability-related initiatives. Our
focus sectors are Healthcare, Education, Skill Development,
Rural Development and Environmental Sustainability. By
implementing capacity building measures, empowering
marginalised and underprivileged communities, we strive for
inclusive growth and equitable societal development. During
FY 2024-25, DPE guidelines for CSR Expenditure stipulate
CPSEs to take up CSR interventions on the common theme of
Health & Nutrition with preference being given to Aspirational
Districts identified by NITI Aayog and PM Internship
Program. Accordingly, the Company has rolled out focussed
interventions to augment health infrastructure in Government
Hospitals and make available mobile healthcare services at

the door-step of the rural populace. Encouraging scientific
curiosity among students & general public, opening up
opportunities to experience technology-enabled learning aids
in government educational institutions, promoting vocational
skills training to enhance employability of youth and creating
a sustainable ecosystem for flora & fauna in the wild are high
points in the CSR space. Pursuant to the requirement under
the Companies (Corporate Social Responsibility) Rules, 2014
(as amended), a report on CSR activities for FY 2024-25 is
annexed herewith as Annexure-2.

Statutory Auditors

Pursuant to Section 139(5) of the Companies Act 2013,
for FY 2024-25, the Comptroller and Auditor General of
India (C&AG) appointed M/s RAO & EMMAR, Chartered
Accountants, Bengaluru, as Statutory Auditors of the
Company for the audit of accounts of Bangalore Complex,
Hyderabad unit, Chennai unit and Corporate Office. M/s C V
Chitale & Co., Chartered Accountants, Pune were appointed
as Branch Auditors of Pune & Navi Mumbai units. M/s Ashwani
& Associates, Chartered Accountants, New Delhi, were
appointed as Branch Auditors of Ghaziabad unit, Panchkula
unit and Kotdwara unit. M/s P Subbarayudu & Co, Chartered
Accountants, Vijayawada were appointed as Branch Auditors
for the Machilipatnam unit.

The Statutory Auditors' Report on financial statements
for the FY 2024-25 and 'Nil' comments of the Comptroller
& Auditor General of India (C&AG) under Section 143(6)
(b) of the Companies Act, 2013 on the financial statement,
including consolidated financial statement, are appended to
the Annual Report.

Cost Auditors and Maintenance of Cost Records

Your Company appointed M/s GNV & Associates, Cost
Accountants, Bengaluru, as Cost Auditors of the Company for
FY 2024-25 for the audit of the cost records of the Company.
The Company maintains cost records as specified by the
Central Government under Section 148(1) of the Companies
Act, 2013.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act,
2013 and The Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 (as amended), the
Company has appointed M/s Thirupal Gorige & Associates
LLP, Practicing Company Secretaries, Bengaluru for FY 2024¬
25 to undertake the Secretarial Audit of the Company.
The Secretarial Audit Report is annexed to this report as
Annexure-3.

The Secretarial Auditor in his report observed that:

i) During the year under review, the composition of Board
was not in compliance with the Regulation 17(1) of
SEBI (LODR) Regulation, 2015 from 10 August 2024 to
31 March 2025, and it was not in compliance with Section
149 of the Companies Act, 2013 from 28 December 2024
to 31 March 2025, due to vacancies in the position of
Independent Directors.

ii) The Quorum of Board meeting held on 5 March 2025 was
not in compliance with Regulation 17(2A) of SEBI (LODR)
Regulations, 2015, due to vacancies in the position of
Independent Directors.

iii) The Composition of Audit Committee was not
in compliance with Section 177 of the Act and
Regulation 18(1) of SEBI (LODR) Regulation, 2015 w.e.f.
20 January 2025, due to vacancies in the position of
Independent Directors.

iv) The Quorum of Audit Committee meeting held on
30 January 2025 was not in compliance with Regulation
18(2)(b) of SEBI (LODR) Regulations, 2015, due to
vacancies in the position of Independent Directors.

v) The Composition of Nomination and Remuneration
Committee was not in compliance with Regulation 19(1)
& (2) of SEBI (LODR) Regulation, 2015 w.e.f. 28 December
2024 and was not in in compliance with Section 178(1) of
the Act w.e.f. 20 January 2025, due to vacancies in the
position of Independent Directors.

vi) The composition of Stakeholders Relationship
Committee was not in compliance with Regulation 20
of SEBI (LODR) Regulation, 2015 and Section 178(5) of
the Companies Act, 2013 w.e.f. 7 February 2025, due to
vacancies in the position of Independent Directors.

vii) The composition of Risk Management Committee was
not in compliance with Regulation 21 of SEBI (LODR)
Regulation, 2015 w.e.f. 7 February 2025, due to vacancies
in the position of Independent Directors.

viii) The composition of CSR Committee was not in
compliance with Section 135 of the Companies Act, 2013
w.e.f. 7 February 2025, due to vacancies in the position
of Independent Directors.

It is informed that the above mentioned non-compliance is

due to non-appointment of requisite number of Independent

Directors on the Board of BEL. BEL being a Govt. Company, all
Directors on the Board of BEL are appointed by the Govt. of
India and the selection process & appointment, which involves
various Ministries and approval by the ACC, takes time and is
beyond the control of the Company.

Reporting of Frauds by Auditors

During the year, neither the Statutory Auditor nor the
Secretarial Auditor have reported to the Audit Committee
under Section 143(2) of the Companies Act, 2013, any instance
of fraud committed against the Company by its officers or
employees, the details of which would need to be mentioned
in the Board's Report.

Annual Return

Pursuant to Section 92(3) read with Section 134(3)(a) of the
Act, the Annual Return in the prescribed format has been
hosted on the website of the company at - https://bel-india.
in/investors/#annualreports

Risk Management

Pursuant to the Reg.21 of SEBI (LODR) Regulations, 2015, the
Board of Directors of the Company has constituted a Risk
Management Committee. The details of the Committee and
its terms of reference, Risk Management Policy etc. are set out
in the Corporate Governance Report and a detailed note on
Risk Management is provided in the Management Discussion
and Analysis Report, which forms a part of this report.

Company's Policy on Director's Appointment,
Remuneration and Board Evaluation

The Board has, on the recommendation of the Nomination &
Remuneration Committee framed a policy for the selection
and appointment of Directors, Senior Management and their
remuneration, Board Evaluation etc. The details are set out
in the Corporate Governance Report, which forms part of
this report.

Vigil Mechanism / Whistle Blower Policy

The Company has a vigil mechanism named the Whistle¬
Blower Policy to deal with instances of fraud, mismanagement
and unethical behaviour, if any. The details of the policy are
set out in the Corporate Governance Report.

Declaration from Independent Director(s)

The Company has received necessary declaration from
Independent Director(s) of the Company under Section 149(7)
of the Companies Act, 2013 and Regulation 16(1)(b) of SEBI
(LODR) Regulations, 2015 that the Independent Director(s)
of the Company meet with the criteria of his Independence
laid down in the Companies Act, 2013 and SEBI (LODR)
Regulations, 2015.

Management Discussion and Analysis Report

Management Discussion and Analysis Report required
under the SEBI (LODR) Regulations, 2015 and also under the
Government (DPE) Guidelines on Corporate Governance for
Central Public Sector Enterprises (CPSEs), is attached to this
Report as Annexure-4.

Particulars of Loans, Guarantees & Investments

In terms of Circular No. GSR 463(E) dated 5 June 2015 issued
by the Ministry of Corporate Affairs, Government of India, the
Company being a Government Company engaged in Defence
production is exempt from Section 186 of the Companies
Act, 2013.

Particulars of Employees and Related Disclosures

The provisions of Section 197 of the Companies Act and the
relevant Rules regarding particulars of employees drawing
remuneration in excess of the limits specified are exempted for
Government Companies, in view of the Gazette Notification
No. GSR 463 (E) dated 5 June 2015 issued by the Ministry of
Corporate Affairs, Government of India.

Internal Financial Controls

The Company has in place adequate internal financial controls
with reference to financial statements. A detailed note on
Internal Financial Controls is provided in the Management
Discussion and Analysis Report, which forms part of this report.

Audit Committee

As on 31 March 2025, the Audit Committee comprised of
Non-Executive -Nominee Director viz., Mr Rajeev Prakash and
Dr. Binoy Kumar Das as its Members. During FY 2024-25, all
the recommendations made by the Audit Committee were
accepted by the Board.

Corporate Governance Report

In terms of Regulation 34 of the SEBI (LODR) Regulations,
2015 and DPE Guidelines, a Report on Corporate Governance
along with a Compliance Certificate issued by the Statutory
Auditors of the Company is attached with this report as
Annexure-5.

Business Responsibility and Sustainability Report
(BR&SR)

The SEBI (LODR) Regulations, 2015 mandated the inclusion
of the Business Responsibility & Sustainability Report (BR&SR)
as part of the Annual Reports for the top 1,000 listed entities
based on market capitalisation. In terms of Regulation 34(2)
(f) of Listing Regulations, a BR&SR for FY 2024-25 describing
the initiatives taken by the Company from an Environmental,
Social and Governance (ESG) perspective, in the format as
support and co-operation in future. Your Directors also place
on record their gratitude for the support received from the
various Ministries of the Government of India, especially the
Ministry of Defence, the Department of Defence Production.
Your Directors express their gratitude to the Defence
Research and Development Organisation (DRDO) and the
various Research Laboratories under DRDO, particularly in
the joint development programmes and new products. Your
Directors express their sincere thanks to the Comptroller and
Auditor General of India, Statutory Auditors, Branch Auditors,
Cost Auditors, Secretarial Auditors, Company's Bankers,
Collaborators and Vendors. Your Directors appreciate the
sincere effort by the employees at all levels, which enabled
the Company to achieve a good performance during the
year. Your Directors express their appreciation and gratitude
to all the shareholders/investors for the trust and confidence
reposed in the Company and look forward to their continued
support and participation in sustaining the growth of the
Company in the coming years.

For and on behalf of the Board

Bengaluru Manoj Jain

28 July 2025 Chairman & Managing Director