Bharat Heavy Electricals Ltd. — Audit Report / Information 2021

Sep 4, 2020

Kalyan Kumar Coari ATTA eat Soren fates Bharat Heavy Electricals Limited General Manager (Finance)

No. AA/FIN/Books/2020 Dated: 03/09/2020

BSE Limited Phiroze Jeejeebhoy Towers, Dalal! Street, Mumbai- 400001

National Stock Exchange of India Limited Exchange Plaza Plot No C-1, G Block, Bandra- Kurla Complex, Bandra (East), Mumbai- 400051

Dear Sirs,

Sub: Intimation of Appointment of Auditors for FY 2020-21

Pursuant to Regulation 30 of SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015, it is informed that the Comptroller & Auditor General of India has issued communication (received on August 10, 2020) regarding appointment of Auditors of the Company u/s 139 (5) of the Companies Act, 2013 for the FY 2020-21.

A copy of communication is enclosed for your information and record please.

Thanking you,

Yours faithfully,

03/94 /ro20

(Kalyan Kumar Coari) General Manager (Finance)

Encl: a/a

D plot loty/

aaa OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA CE 10, BAHADUR SHAH ZAFAR MARG, NEW DELHI - 110 124

NoJ/CA. V/ COY/CENTRAL GOVERNMENT, BHEL(8)/67 Dated :10/08/2020

To THE MANAGING DIRECTOR BHARAT HEAVY ELECTRICALS LTD BHEL HOUSE, SIRI FORT NEW DELHI-110049

Subject : Appointment of Auditors under section 139 of the Companies Act, 2013 for the financial year 2020-2021

Sir/Madam,

I am directed to state that in exercise of the powers conferred by section 139 of the Companies Act 2013, the Comptroller and Auditor General of India is pleased to appoint the Chartered Accountant firms/Limited Liability Partnerships As per Annexure - Il as the Statutory/Joint Statutory/ Branch Auditors of the company for the year(s) : 2020-2021. Statutory/Joint Statutory Auditor (s) of holding company shall also be the auditors of Consolidated Financia] Statements under section 139 read with section 129(4), of the Companies Act, 2013.

1. You are requested to contact the concerned auditors individually under intimation to this office

2. The supplementary/test audit under sections 143 (6) & (7) of the Companies Act, 2013 of your company is entrusted to PRINCIPAL DIRECTOR OF AUDIT (ENERGY) 4th & 5th FLOOR, ANNEXE BLDG 10, BAHADUR SHAH MARG NEW DELHI-110124

3. The remuneration and other allowances payable to the auditors may be regulated as per the provisions of section 142 of the Companies Act 2013 read with guidelines issued by the Department of Company Affairs vide no. 7/76 dated 8th April, 1976 and no. 8/6/83 dated 07th June, 1984.

4. The audit fees paid/payable to the auditors as intimated by the Company has been indicated in Annexure-I. Any revision in the audit fees payable (including fees for consolidation) for the year 2020-2021 and itemwise details of all remuneration paid to the auditors for other services (other than statutory audit) alongwith the amount of TA/DA paid for 2019-2020 may be intimated.

The said information may be provided as soon as the Accounts for the year 2019-2020 is finalised so as to enable this office to review the appointment/ re-appointment of the appointed auditors.

1. The above appointment is subject to the other conditions stipulated in Annexure-I( available on the CAG's website http://care.cag.gov.in/policy/terms. pdf).

Yours faithfully, Nine mn ( Preethy Naeeannn ) Sr. Administrative Officer

Phone : 011-23509240 Fax : 91-11-23237730, 91-11-23509241 E-mail : saoca5(@cag.gov.in, sao2caS@cag.gov.in

ANNEXURE - II

LIST OF CHARTERED ACCOUNTANT FIRMS FOR THE YEAR 2020-2021

ANNEXURE - I ILIST OF CHARTERED ACCOUNTANT FIRMS FOR THE YEAR 2020-2021Fees in Rs
SI.N 0	Firm Name	PSU Code /Unit Code	Station	Audit Details	(A 5 )intimatedby the PSU).
	STATUTORY AUDITOR
	RAJ HAR GOPAL &CO(DE0336)412 - ANSAL BHAWAN16 - KASTURBAGANDHI MARGNEW DELHINEW DELHI-110001, DELHI	BHEL(3)	NEWDELHI NEW DELHI	STATUTORY AUDITOR-CONSOLIDATION OF A/C,CORPORATE OFFICE NEW DELHI,POWER SECTOR (HQ), POWERSECTOR (COMML), PEMCONSOLIDATION OF POWERSECTOR,INDUSTRY SECTOR, REG OPN NEWDELHI (INCLU REGIONS) ANDPOWER SECTOR NR/NOIDA & ER	1665800
$\vert$ 2	TIWARI &ASSOCIATES$\vert$ (DE0613)T-8 GREEN PARKEXTENSIONNEW DELHINEW DELHI -110016, DELHI	BHELHARDWAR HARDWAR(3)		STATUTORY AUDITOR-CONSOLIDATION OF A/C, HEEP &CFFP AT HARDWAR, INDUSTRIALVALVES PLANT GOINDWAL(AMRITSAR DISTT),INTERNATIONAL OPERATIONS IAND TRANSMISSION PROJECT,INSULATOR PLANT JAGDISHPUR,COMPANY FABRICATION PLANTRUDRAPUR	1688400
3	MAHESH C SOLANKI& CO(CR2052)E-3/2, NUPURKUNJ,ARERA COLONYBHOPALBHOPAL - 462016	BHELHEPUNIT(4)	BHOPAL	STATUTORY AUDITOR-CONSOLIDATION OF A/C, HEAVYELECTRICALS PLANT, POWERSECTOR (WESTERN REGION)NAGPUR, TRANSFORMER PLANTJHANSI,OIL SECTOR BUSINESS ANDELECTRICAL MACHINES REPAIRPLANT, MUMBAI, R & M SYSTEMGROUP, HERP VARANASI	1671300
	BRANCH AUDITOR
$\overline{\mathbf{4}}$	PONRAJ & CO(MD0255)TELC DIAMONDJUBILEE BUILDINGSCANTONMENT IIFLOOR MADURAIROADTRICHYTRICHY - 620001	BHELTRICHY(3)	TRICHY	HP BOILER PLANT TRICHY,MAGNETO HYDRO DYNAMICSTRICHY	1069900
5	RAO & EMMAR(BA0634)P-6C,CHAMPAKABUILDING, 3RD FLOORIST MAIN, IST STAGEPEENYA INDUSTRIALAREABENGALURUBENGALURU -560058, KARNATAKA	BHELELEC DN(1)	BENGALURU	ELECTRONICS DIVISION, INDL SYSGROUP ELE PROCLAINS GROUPELECTRO PORCEL- AIN DIVISION,BANGALORE	502400

RAO & KUMAR(SRO025)RAO and KUMARCHARTEREDACCOUNTANTSSriLakshmi Vishnusa,Thankur Manson RoadSomajiguda, HyderabadHYDERABAD - 500329	BHELHPPLANT(4)		HEAVY POWER EQUIPMENT PLANTHYDERABAD, CORPORATE R&DHYDERABAD HYDERABAD PROJECT ENGINEERING & SYSTEM 1932000DIVISION, HYDERABAD, HEAVYPLATES & VESSELS PLANTSVISHAKHAPATNAM
GOPALAIYER ANDSUBRAMANIAN(SR1043)11, RAJAN STREETT.NAGARCHENNAICHENNAI- 600017	BHEL--RANIPET(1)	RANIPET	BOILER AUXILLARY PLANTRANIPET, POWER SECTOR(SOUTHERN REGION)	424600

OFFICE OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA 10, BAHADUR SHAH ZAFAR MARG, NEW DELHI-110 002

Appointment of auditors of Government Company/Government controlled other company under Section 139 (5 & 7) of the Companies Act, 2013.

I CONDITIONS FOR THE COMPANY

1. The Company may send a list of Directors and the previous Auditors of the Company giving their names and addresses to the newly appointed Auditors immediately on receipt of this letter.

2. While the auditor is responsible for forming and expressing an independent opinion on the financial statements, the responsibility for their preparation is that of the management of the enterprise. The audit of the financial statements does not relieve the management of its responsibilities relating to the maintenance of adequate accounting records, internal controls and safeguarding of the assets of the enterprise. As provided in Section 134 of the Act, the Company should submit to the auditors the Financial Statements/Consolidated Financial Statements duly approved by the Board of Directors for their report thereon.

3. According to Section 143 (1) of the Act, the books of accounts and vouchers may be made available to the Auditors. A suitable program of audit in consultation with the statutory auditors and the concerned MAB/AG be drawn up so as to complete the audit within the prescribed time schedule. Details of transactions or explanation called for by the Statutory Auditors must be furnished expeditiously.

4 (i). The remuneration payable to the Auditors fixed by the Company in accordance with section 142 of the Companies Act, 2013 may be intimated immediately to this office and to the auditors.

(i) While fixing the auditor

accounts as per SEBI guidelines, VAT audit required under various State Legislations and other statutory certificates related to the audit assignment

6(a) The Company should confirm past audit details including audit fees. The changes in details including the fees in the future may be intimated to this office from time to time. Any other remuneration like TA/DA, Certification fees, tax audit fees, quarterly/half yearly review fees, VAT audit etc. paid to the Statutory/Branch Auditors in addition to the audit fees in the last three years and in future may also be intimated. The remuneration for other work like review of quarterly accounts as per SEBI guidelines, fees for tax audit, other statutory certificates etc should be restricted to a reasonable the percentage of the total audit fee payable to the auditors and which in total should not exceed the fee payable for carrying out the statutory audit. The details of such remuneration may also be intimated to this office for record.

6(b) The Auditors have to comply with the directions issued by this office under Section 143 (5) of the Companies Act, 2013 and for this purpose the auditors have to attend meetings called by the concerned DG/PAG/MAB/AG. For attending such meetings, reasonable expenditure on TA/DA incurred by the auditors may be reimbursed by the company.

7.Proposals for re-organisation of units in the future may be sent to this Office well before the beginning of the financial year the accounts of which are to be audited.

1. The Company may also intimate to this office (1) the date of commencement of audit; and the date on which the comments of the C&AG of India along with the Auditors Report is placed in AGM as per the provisions of 143 (6) of the Companies Act, 2013.

2. To reduce the arrears, in case of Companies whose accounts are in arrears, and to avoid delays in appointing auditors for the past few accounting years in arrears, the Company may initiate action for appointment of auditors for the subsequent years soon after the completion of audit of the preceding years. A copy of such certified accounts may be made available direct to the Principal Director (Commercial) in this Office. If the process is repeated in succession, the Company can hold a series of meetings of the shareholders and present the accounts. It can thus clear the accounts for 3-4 years within a period of one year.

Il. CONDITIONS FOR THE AUDITORS

1. The Firm/LLP may please intimate their acceptance as auditors of the Company within 3 weeks of receipt of this appointment letter (i) to the Company (ii) to this Office (111) to the concerned DG/PAG/AG/MAB entrusted with the Supplementary Audit of the Company. If, for any reason the Auditors are not in a position to accept the appointment, they may intimate all the above-mentioned offices immediately along with the reasons for their decision.

2. The appointment / re-appointment of Firm/LLP is subject to its performance in the previous years

5 The time schedule for conducting the audit may be drawn up with scheduling of audit i.e indicating the period of audit of different departments/ units of the PSU and also the name of personnel & their qualification who will be deployed for audit of each unit. A copy of the time schedule so fixed may be sent to the concerned DG/PAG/AG/MAB so that they may also draw their time schedule for supplementary audit.

6 The Firm/LLP must complete the audit of the units/branches allotted to them within the time schedule stipulated by the management so that the statutory time schedule for placing the accounts in the AGM could be adhered to.

7 Record of audit work done in the form of working papers should be retained with sufficient information so as to support the auditors