Bharat Electronics Ltd. — Interim / Quarterly Report 2020

Jan 30, 2020

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BSE Ltd. Phiroze Jeejeebhoy Towers Dalai Street iti Mumbai - ^{400 001}

f.No. 17565/4/SE/MUMC/SEC / Date: 30.01.2020

BHARATELECTRONICS ÿHRcf ÿcfÿRRT feftrÿ (OTRW CRT ÿJ£R, 7«T HÿlcHij) 4ÿ1<£d cpaea : 3nv3cT7 fÿT Te, HHWHJI, #Tc£T - ⁵⁶⁰ 045, W?T Bharat Electronics Limited (Govt, of India Enterprise, Ministry of Defence) Registered Ofice : Outer Ring Road, Nagavara, Bangalore - 560 045, INDIA. CIN : L32309KA1954GOI000787 tÿRT/Teiefax : +91 (80) ^25039266 #-*fw/E-mail : secretary@bel. co.in a/Web : www.bel-lndia.com

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Pursuant to Regulation 33(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Statement of Unaudited Standalone and Consolidated Financial Results and Limited Review Report for the quarter and nine months ended 315* December, 2019 along with copy of Press Release.

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For Bnÿrat Electronics Limited

?HT- ÿ«TT STTtrF ^I Ends: As stated above.

BHARAT ELECTRONICS LIMITED (CIN: L32309KA1954001000787) Registered & Corporate Office: Outer Ring Road, Nagavara, Bengaluru - ⁵⁶⁰ 045. E-mail: secretary@bel. co.in, Website: www.bel-india.in. Ph: 080-25039300 / 25039266 Fax: 080-25039266

(CIN: L32309KA1954001000787)
- & Corporate Office: Road, Nagavara, Bengaluru Registered Outer Ring 560 045.
	E-mail: secretary@bel. co.in, Website: www.bel-india.in.				Ph: 080-25039300 / 25039266 Fax: 080-25039266
	Statement of standalone and consolidated	unaudited results for the quarter and nine			months ended 31st December, 2019
_ A. Standalone Results
							(? in Lukhs)
SI.			Quarter ended		Nine months ended 31.12.2018		Year ended 31.03.2019
No.	Particulars	31.12.2019	30.09.2019 (Unaudited)	31.12.2018	31.12.2019 (Unaudited)		(Audited)
1	Revenue from operations
i.	from Sales / income operations	217,904	266,125	265,638	688,227	801,662	1, 178,922
ii.	Other operating income	9, 200	8, 146	011 6,	23,300	18,334	29,538
	Total revenue from operations	227,104	274,271	271,649	711,527	819,996	208,460 1,
2	Other income	317 3,	503 1,	762 1,	7, 364	4, 075	16,954
3	(1+2) Total income	230,421	275,774	273,411	718,891	824,071	225,414 1,
4	Expenses (a) Cost of	128,209	118,147	112,789	336,794	382,436	532,087
	materials consumed (b) Consumption of stock-in-trade	38,381	31,739	12,086	92,762	31,083	75,906
	i of (c) Changes in inventories nished goods,
	work-in-progress and scrap	(39,008)	(3,894)	649	(50,336)	(15,314)	(13,220)
	i (d) Employee ts expense bene	45,133	50,728	499 49,	148, 280	143,705	187,905
	(e) Finance costs	11	122	-	165	27	221 1,
	(f) Depreciation and amortisation expense	612 8,	565 8,	971 7,	25,461	22,294	31,622
	(g) Other expenses	18,917	23,077	19,814	59,270	84,781	139,574
	Total expenses	200,255	228,484	202,808	612,396	649,012	955,095
5	i t before exceptional items & tax ( 3 - 4 ) Pro	30,166	47,290	70,603	106,495	175,059	270,319
6	Exceptional items	-	-	-	-	-	-
	i t before tax (5 - 6)	30,166	47,290	70,603	106,495	175,059	270,319
7	Pro
8	Tax expense (including deferred tax)	657 8,	13,341	19,840	30,564	49,192	77,590
9	i t for the period (7 - 8) Pro	21,509	33,949	50,763	75,931	125,867	192,729
10	Income / (Loss) (net oftax) Other Comprehensive	2, 866	(1,494)	(4,217)	945 1,	(1,385)	(4,021)
11	Total comprehensive income for the period (9 + 10)	24,375	32,455	46,546	77,876	124,482	188,708
	i [comprising t and other comprehensive income for pro
	the period]
12	Paid-up equity share capital (Face Value of ? 1/- each)	24,366	24,366	24,366	24,366	24,366	24,366
13	Revaluation Other Equity excluding Reserves	-	-	-	-	-	877,525
14	Earnings per share (Basic & Diluted) (?) (not annualised)	0. 89	39 1.	2. 09	3. 12	5. 17	91 7.

See accompanying notes to the financial results.

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^B Consolidated Results

Nine months ended Year ended Quarter ended SI. 31 122018 31 122019 31.12 2019 31 03 2019 Particulars 30 09 2019 31 12.2018 No (Unaudited) (Audited) (Unaudited) Revenue from operations 1 807,183 218,272 690,801 1, 185,470 266, Sales / income from operations 357 267,534 i li 19,310 30,947 475 6, 24,289 Other operating income 9, 536 337 8, 216, 417 273,871 715,090 808 826,493 Total revenue from operations 227, 274, 832 1, 919 Other income 718 299 076 3, 339 1, 153 7, 7, 3, 2 1, 830,211 Total income (1+2) 223,716 231, 722,166 147 275,985 275,790 1, 3 Expenses 4 (a) Cost of 531,592 128,014 materials consumed 385,505 117,964 114,262 337,254 (b) Consumption of 31,083 38,381 31,739 12,086 92,762 75,906 stock-in-trade (15,582) (c) Changes in inventories offinished (13,068) (4,117) (50,617) 494 (38,944) goods, work-in-progress and scrap 189,514 (d) Employee benefits expense 51,094 49,838 149,434 144, 45,550 764 275 167 (e) Finance costs 123 134 37 1, 12 27,128 (f) 9, 33,813 9, 484 23,874 Depreciation and amortisation expense 170 122 8, 19,137 141,850 85,865 23,280 20,329 60,207 (g) Other expenses 616,335 201, 960,882 205,530 655,643 Total expenses 320 229,205 share ofnet profit of Profit before exceptional items, 105,831 262,834 29,827 70,260 174,568 46,780 5 associates accounted under equity method & tax (3-4) - - Exceptional items - - - - 6 Profit before share of 831 net profit of associates accounted 174,568 29,827 262, 46, 70,260 105, 834 780 7 under equity method & tax (5 - 6) 13,261 78,031 Tax Expense (including deferred tax) 19,845 30,460 49,223 8, 574 8 Profit before share of net profit of associates accounted 21,253 50,415 33,519 75,371 125,345 184,803 9 under equity method (7 - 8) Share of net profit ofassociates 2, 244 030 908 1, 404 3, 3, 864 140 10 accounted 1, under equity method 51,555 Profit for the period (9 + 10) 188,667 22, 34,427 77,775 128,589 11 283 (1,396) Other Comprehensive Income / (Loss) (net oftax) (1,493) (4,127) 2, (4,221) 864 944 12 1, 127,193 Total comprehensive income for the period (11 + 12) 79,719 184, 47,334 25, 147 540 32,934 13 [comprising profit and other comprehensive income for the period] 14 Net Profit / (Loss) attributable to 77,712 128,581 a) Owners of the Company 51, 22, 34,385 268 188,640 552 b) Non Controlling 63 42 27 Interest 15 8 3 Other Comprehensive Income attributable to (4,127) a) Owners ofthe (1,396) (1,493) 2, 864 (4,221) 944 Company 1, b) Non Controlling Interest Total Comprehensive Income attributable to 25,132 127,185 a) Owners ofthe 513 47,331 32,892 184, 79,656 Company b) Non Controlling Interest 63 27 42 15 3 8 Paid-up equity share capital 24,366 24,366 24,366 24,366 24,366 24,366 15 (Face Value of ? 1/- each) - - - - - Other Equity excluding Revaluation Reserves 896,784 16 091 Earnings per share (Basic & Diluted) (?) (not annualised) 2. 5. 28 1 42 12 7 74 3 19 17						(? in Lakhs)

C. Notes:

• ¹ These results have been prepared in accordance with the Ind AS notified under the Companies (Indian Accounting Standards) Rules 2015, as amended.
• ² Adoption ofInd AS ¹¹⁶ Leases :

Effective April 1, 2019, the company has adopted Ind AS 116 "Leases" using the cumulative effect method. The standard is applied retrospectively and hence the comparative information is not restated. The adoption of the standard did not have any material impact on the inancial statements ofthe company.

• ³ Ministry of Corporate Affairs (MCA) has exempted the companies engaged in defence production from the requirement of Segment Reporting.
• ⁴ The unaudited quarterly results of subsidiary company viz. BEL Optronic Devices Ltd (100 % shareholding), BEL Thales Systems Ltd (74 % shareholding) are included in consolidated financial results for the quarter ended 31st December 2019. The associate viz. GE BE Pvt. Ltd. has been consolidated under equity method [26 % Shareholding], The consolidated financial results have been prepared as per Ind AS 110 and Ind AS 28.
• ⁵ As required under clause ³³ of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Statutory Auditors have conducted ^a limited review ofthe above financial results for the quarter and period ended 31st December 2019.
• ⁶ An interim dividend of ? 1.40 per share for the year 2019-20 has been declared by the Board of Directors at the meeting held on 30th January 2020.
• ⁷ The above statement of financial results was reviewed by the Audit Committee and approved by the Board ofDirectors at the Meeting held on 30th January 2020.

Place: New Delhi Date: 30th January 2020

Offices: Chennai, Madurai , Coimbatore, Th'ruvananthapuram, Cooiiuui , Banyaluie & Kochi

Independent Auditor's Review report

Review report to the Board of Directors of Bharat Electronics Limited

We have reviewed the accompanying statement of unaudited standalone financial results of Bharat Electronics Limited ("the company") for the quarter and nine months ended 31f1 December 2019 ("the statement"),being submitted by the Company,s Management pursuant to the requirements of Regulation ³³ of SEB1 (Listing Obligation and Disclosure Requirements) Regulation, 2015 ("the regulation") as amended, read with SEBI circular CIR/CFD/CMD1/44/2019 dated 29"h March 2019 and in accordance with the recognition and measurement principles laid down in Indian Accounting Standard ³⁴ " Interim Financial Reporting" ("Ind AS 34"), prescribed under Section ¹³³ ofthe Companies Act, 2013, and other accounting principles generally accepted in India and has been approved by the Board of Directors. Our responsibility is to issue ^a report on these financial statements based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results prepared in accordance with applicable accounting standards and other recognized accounting practices and policies has not disclosed the information required to be disclosed in terms of Regulation ³³ of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner ⁱ which it is to be disclosed, or that it contains any material misstatement.

52/4, Basappa Road, Shanthi Nagar, Bangalore-560 027

9f ~ 5

GSTIN - 29AABFS5023Q1ZR

Other matters

A fraud on the company by the employees has been detected during the routine internal audit as estimated to Rs. ¹⁰ crores for which necessary provision is made.According to the information and explanations given to us, the matter is under enquiry/ investigation.

Our conclusion is not modified in respect ofthis matter.

For Suri & Co., Chartered Accountants Firm Registration No:004283S

Place: New Delhi Date:30thJanuary 2020 Partner

Membership Number: 223118

Independent Auditor's Review Report On consolidated unaudited quarterly and year to date financial results of the Company Pursuant to the Regulation ³³ ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To the Board of Directors of Bharat Electronics Limited

• I. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of Bharat Electronics Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group"), and its share of the net profit ater tax and total comprehensive income of its associates for the quarter and nine months ended 31S, December, 2019 and for the period from 01ft April 2019 to 31ft December 2019 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation ³³ of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended read with SEBI circular CIR/CFD/CMD1/44/2019 dated 291h March 2019. Attention is drawn to the fact that the consolidated figures for the corresponding quarter and nine months ended 31S( December ,2018 and the corresponding period from 01®' April ²⁰¹⁸ to 31®( December 2018, as reported in these financial results have been approved by the Parent's Board of Directors,but have not been subjected to review.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard ³⁴ "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section ¹³³ of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express ^a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor ofthe Entity", issued by the Institute of Chartered Accountants of India. ^A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would & ^x-,

080-41240545 080-41270545 52/4, Basappa Road, Shanthi Nagar, Bangalore-560 027

9

GSTIN - 29AABFS5023Q1ZR

become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation ³³ (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

• 1. The Statement includes the results ofthe following entities'.
• a. BEL Optronics Devices Limited (BELOP) Subsidiary
• b. BEL Thales Systems Limited Subsidiary
• c. GE BE Private Limited Associate
• 1. Based on our review conducted and procedures performed as stated in paragraph ³ above and based on the consideration of the review reports ofthe other auditors referred to in paragraph ⁶ below, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation ³³ of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. We did not review the interim financial results of two subsidiaries included in the consolidated unaudited financial results, whose interim financial results reflect total revenues of Rs.6,948 lakhs, total net profit/(loss) ater tax of Rs. 45 lakhs, total comprehensive income of Rs. ⁴⁵ lakhs for the nine months ended 31S1 December 2019 as considered in the consolidated unaudited financial results.These interim financial results have been reviewed by other auditors whose repots have been furnished to us by the Management and our conclusion on the Statement , in so far as it relates to the amounts and disclosures included in respect of these subsidiaries is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph ³ above.

Our conclusion on the Statement is not modified in respect ofthe above matters.

1. The consolidated unaudited inancial results also includes the Group's share of net profit ater tax of Rs. 2,404 lakhs, total comprehensive income of Rs.2, 403 lakhs for nine months ended 31f1 December 2019, as considered in the consolidated unaudited inancial results, in respect of one associate, whose interim inancial results have not been audited by us. These interim inancial results are unaudited and have been furnished by the Management and our opinion on the statement, in so far as it relates to the amounts and disclosures included in respect of the associate is based solely on such unaudited interim inancial results. In our opinion and according to the information and explanations given to us by the Management, these interim inancial results are not material to the Group.

Our conclusion on the Statement is not modiied in respect ofthe above matter.

1. ^A fraud by the employees of the parent company has been detected during the routine internal audit as estimated to Rs. ¹⁰ crores for which necessary provision is made. According to the information and explanations given to us, the matter is under enquiry/ investigation.

Our conclusion on the Statement is not modiied in respect ofthe above matter.

For Suri & Co., Chartered Accountants Firm Registration No:004283S

Place: New Delhi Date:30)h January 2020 Partner Membership Number: 223118

: 0-02.2.3 >1 £ ^A

BEL registers ^a turnover of Rs. 6882 Cr upto 3rd Quarter of FY 2019-20.

Navratna Defence PSU Bharat Electronics Limited (BEL) has achieved ^a Turnover of Rs. 6882.27 cr, upto the 3rd Quarter of FY 2019-20 over ^a Turnover of Rs. 8016.62 cr recorded in the corresponding period of the previous year.

During the current period, turnover in respect of some major projects could not materialise due to factors like obsolescence in input material, modification in scope of work, non readiness of sites for carrying out installation activity, lengthy process for customer clearance for dispatch etc. The turnover in respect of these projects is expected to be realised in the next quarter of FY 2019-20.

Profit after Tax (PAT) upto the 3rd Quarter of FY 2019-20 stood at Rs. 759.31 cr, over the Profit after Tax (PAT) of Rs. 1258.67 cr recorded in the corresponding period of the previous year.

The profit for the current period is lower mainly due to lower sales realisation coupled with low margins on projects executed during the current period due to high material content. The profitability position is expected to improve in the last quarter of FY 2019-20 on higher sales realisation.

The order book position of the company as on 1S1 January, ²⁰²⁰ stood at Rs. 54959 cr.