BHARAT DYNAMICS LIMITED

(A Govt. of India Enterprise, Ministry of Defence)

CIN :- L24292TG1970GOI001353
Corporate Office: - Plot No. 38-39, TSFC Building, Near ICICI Towers, Financial District,
Nanakramguda, Hyderabad-500032
Registered Office: - Kanchanbagh, Hyderabad-500058
Tel: 040-23456145; Fax: 040-23456110
e-mail: investors@[Link]; website: [Link]
Ref -BDL/CS/2023/SE-45 Date: 05/09/2023

To, To,
Compliance Department Compliance Department
The National Stock Exchange of India Ltd BSE Limited
Exchange Plaza, Phiroze Jeejeebhoy Tower,
Bandra-Kurla Complex, Bandra (East) Dalal Street,
Mumbai- 400051 Mumbai- 400001
Scrip Code- BDL Scrip Code-541143

Sub: - Intimation of 53rd Annual General Meeting and Book Closure.

1. We wish to inform you that the 53rd Annual General Meeting (AGM) of the Members of
Bharat Dynamics Limited will be held on Thursday, 28 September 2023 at 03:00 PM through
Video Conferencing (VC) /Other Audio Visual Means (OAVM).

2. Pursuant to Regulation 42 of the SEBI (Listing and Disclosure Requirements) Regulations,

2015 (as amended), we wish to inform you that the Register of Members and Share Transfer
Books of the Company will remain closed from Thursday, 21 September, 2023 to Thursday,
28 September, 2023 (both days inclusive) for the purpose of payment of Final Dividend and
for the 53rd Annual General Meeting of the Company. The company has fixed Wednesday, 20
September, 2023 as the “Record Date” for determining the members eligible to receive final
dividend. The dividend, if declared by the members at the AGM, will be paid within 30 days
from the date of declaration.

3. The Notice of 53rd AGM and copy of Annual Report 2022-23 containing Directors' Report,
CSR Report, MD&A, Report on Corporate Governance, Business Responsibility and
Sustainability Report, Financial Statements along with Auditors' Report is being uploaded in
the company’s website i.e. [Link] and also on Listing Portals of
the exchanges for your records.

For Bharat Dynamics Limited

NAGULA Digitally signed by NAGULA
NAGARAJA
NAGARAJA Date: 2023.09.05 [Link] +05'30'

N. Nagaraja
Company Secretary
53rd Annual Report
2022-23

• Dedication • Commitment • Perseverance

THE FORCE BEHIND PEACE

Since its establishment, Bharat Dynamics Ltd., has been in the service
of the services by developing and manufacturing various types of
guided missiles and allied defence products through inhouse R&D
as well as under ToT. Today, BDL is one of the leading manufacturer
and a supplier of missile systems with latest technologies to Indian
Armed Forces as well as to friendly foreign countries.

Table of Contents
Corporate Overview Financial Statements
Who we are 01 Independent Auditors' Report 108

Corporate Information 02 C & AG Report 129

Board Members 03 Balance Sheet 133

Chairman’s Statement 04 Statement of Profit and Loss 134

Our Products 08 Statement of Changes in Equity 135

Financial Highlights 10 Statement of Cash Flows 136

Ten Years at a Glance 11 Accounting Policies 137

Notes to Financial Statements 150

Boards’ Report
Directors' Report 12

Management Discussion & Analysis 47

Report on Corporate Governance 56

Business Responsibility & Sustainability Report 80

 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

who we are
Established in 1970, Bharat Dynamics Limited (BDL), is a Government of India Enterprise under
the Ministry of Defence and a manufacturer of Surface to Air Missiles (SAM), Air to Air Missiles
(AAM), Anti - Tank Guided Missiles (ATGMs), Torpedoes, and Allied Defence Equipments. Head
Quarters of the Company is located at Hyderabad and has currently three manufacturing units,
located at Kanchanbagh, Hyderabad in Telangana State, Bhanur, Sangareddy District in Telangana
State and Visakhapatnam in Andhra Pradesh. BDL is in the process of setting up additional facilities
at Amaravati, Maharashtra, lbrahimpatnam, Telangana and Jhansi, Uttar Pradesh. The Company also
commenced export of selected defence equipments and has entered into strategic alliances with
public and private sector companies. The Company has 2560 employees as on 31 March 2023 and
during the year 2022-23 reported a net sales turnover of ₹ 2489 crore.

Objectives Vision Mission

- To become self-reliant To be a world-class enterprise To establish itself as a
and competitive in producing international leading manufacturer in the
Guided Missile and standard quality products for aerospace & underwater
Underwater Guided the Defence industry. weapons industry and emerge
Weapon Technology and as a world class sophisticated,
Production. State-of-the-a rt, global
- To maximize utilization enterprise, providing soluti-
of existing production ons to the security system
capacities needs ofthe country.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 1
Corporate Information
Corporate Office Auditors
Plot No.38-39, TSFC Building Near ICICI Towers M/s. G. Natesan & Co.,
Gachibowli, Financial District Hyderabad-500032 Chartered Accountants, Hyderabad
Tel:-040-23456145 Fax:040-23456107
Internal Auditors
E-Mail: investors@[Link]
website: [Link] M/s. A.V. Ratnam & Co.,
Chartered Accountants
Registered Office
M/s. Raju & Prasad
Kanchanbagh Post Hyderabad - 500058 Telangana, India
Chartered Accountants
EPABX: 040-24587466 & 040-24587777
Fax:- 040 24340464 M/s. A.R. Sulekhe & Co.,
E-Mail: bdlitd@[Link] Chartered Accountants
website: [Link] M/s. Vaithisavaran & Co.,
Chartered Accountants
Chief Vigilance Officer
Dr. Upender Vennam, IPoS Cost Auditors
M/s. Narasimha Murthy & Co.,
Company Secretary
Cost Accountants
Shri N Nagaraja
Tax Consultants
Principal Executives
M/s Bansal & Dave,
(As on 31 March 2023)
Income Tax Consultant
Cmde Girish Raghunath Pradhan (Retd.)
M/s Price water house Coopers,
Executive Director (BU)
GST Consultant
Shri PV Raja Ram
Legal Advisors
Executive Director (KBU)
Smt V Uma Devi
Smt V Latha Shri D Ravi Shankar Rao
General Manager (KBU) Smt D. Radhika
Shri SV Kameshwar Bankers
General Manager (VU) Union Bank of India
State Bank of India
Shri L Kishan
UCO Bank
General Manager (Konkurs-M)
Punjab national bank
Shri M Ravi ICICI Bank
General Manager (BD & Mktg.)
Registrar & Share Transfer Agent
Shri S Murali Mohan Alankit Assignments Limited
General Manager (Refurbishment & TSD) SEBI Registration Number: INR000002532
4E/2 Jhandewalan Extension, New Delhi-110055
Shri M Sreedhar Rao
Telephone: +91 11 42541234 ; Facsimile : +91 11 41543474
General Manager (IBU & New Projects)
Email: rta@[Link]; Website: [Link]
Shri G Gayatri Prasad
General Manager (Finance)
Shri DV Srinivas Rao
General Manager (D&E and ED)

2 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

BOARD MEMBERS
(As on 31 July 2023)

CHAIRMAN & MANAGING DIRECTOR

Commodore A Madhavarao (Retd.)

(w.e.f 19 July 2023)

GOVERNMENT DIRECTORS WHOLE TIME DIRECTOR

Shri U Raja Babu Shri Anurag Bajpai Shri N. Srinivasulu

Director General (MSS) Joint Secretary (DIP) Director (Finance) & CFO
(w.e.f. 21 July 2023)

INDEPENDENT DIRECTORS

Shri Sunil Chintaman Mone Prof. (Dr.) Sanghamitra Mishra Shri Rajendra Singh Shekhawat KEY MANGERIAL
PERSONNEL

Shri Nandakumar Subburaman Dr. Pawan Sthapak Shri Jashwant Lal Shri N Nagaraja
(w.e.f 24 February 2023) Company Secretary &
Compliance Officer

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 3
Chairman’s Statement

DEAR SHAREHOLDERS,
At the outset, I would like to extend my gratitude to each of you for your continued support and investment in BDL. Your unwavering
support and faith in us inspires us to achieve new milestones of success.
I take pleasure in sharing with you the 53rd Annual Report of BDL, a company built over more than five decades of spirited and
perseverant efforts by a highly skilled work force.
Despite the operational and supply chain disruptions caused by the current global scenario, BDL’s performance throughout the
financial year 2022–23 has been impressive, bearing testimony to the hard work put forth by all the stakeholders associated with the
company.
The Government of India’s initiatives to make India self-reliant in providing state-of-the-art weapon systems to the Indian Armed
Forces and clearance for export to Friendly Foreign Countries (FFCs) have opened plenty of opportunities for BDL to grow and expand
into the market. BDL has set the path to work towards more opportunities and live up to the expectations of investors.
I take this opportunity to share the performance highlights during the last financial year and the future outlook for BDL.
FINANCIAL AND PERFORMANCE HIGHLIGHTS OF THE YEAR:
BDL achieved production of ₹2508.43 crore as against ₹ 2901.76 crore of previous financial year and also achieved sales turnover of
₹2489.39 crore as against ₹2817.40 crore of previous financial year.
BDL has achieved a profit after tax (PAT) of ₹352.17 crore as against a profit of ₹499.92 crore reported in the previous financial year.
I am extremely pleased to inform you that BDL continues to maintain a consistent dividend payment. Your Board has recommended
a final dividend of ₹1.20 per equity share of ₹10 each, amounting to ₹21.99 crore. It also gives me great pleasure to inform you that
BDL has already paid an interim dividend of ₹8.15 per share in February 2023. The total dividend for FY 2022–23 declared by the
company is ₹9.35 per share (face value of ₹10 each).

4 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

PERFORMANCE VIS-A-VIS MoU:

In terms of the Memorandum of Understanding (MoU) signed with the Department of Defence Production, Ministry of Defence
(MoD), Government of India, BDL has been rated “Very Good” for the year 2021–22, and for 2022–23, it is under evaluation.
NEW PARTNERS IN PURSUIT OF TECHNOLOGY UPGRADATION:
Technology upgradation has always been an area of priority for BDL in order to keep pace with the current requirements in the global
defence industry. In pursuit of this, BDL has entered into MoUs or teaming agreements with several entities, like:
¾¾ MoU with MBDA, France, for the manufacturing of Mistral missiles in India for supply to the IAF.
¾¾ MoU with a startup, i.e., M/s New Space Technologies, Bangalore, on product development, including integration of BDL
payload(s) onto the UAV platforms of M/s NRT for military applications, technical support, armament support, and infrastructure
support.
¾¾ MoU with BHEL for jointly working on the emerging opportunities in the Indian defence and aerospace market, especially the
space sector.
¾¾ MoU with Raphe mPhibr Private Limited, Noida, to work together on UAVs and launch systems for the ULPGM project.
¾¾ MoU with Dassault Aviation Pvt. Ltd., France, for the integration of BDL weapon systems like Astra and SAAW on Rafale aircraft
for the Indian Armed Forces and future export markets
¾¾ MoU with Thales Belgium S.A. and Thales India Private Limited for the setting up of manufacturing facilities for the Laser Guided
Rocket and its major components in India, to be a part of Thales global supply chain for future requirements of Thales export
markets and also for the India market.
¾¾ MoU with BARIJ Dynamics LLC (“AL TARIQ”), Abu Dhabi, United Arab Emirates, to cooperate together for the manufacturing of
PGM kits in India, both for India as well as the export market.
¾¾ MoU with BULTEXPRO LTD., Bulgaria, for setting up the manufacturing facilities for 122mm GRAD BM ER and non-ER rockets
in India, including ToT.
¾¾ BDL has also entered into a Licencing Agreement for Transfer of Technology (LAToT) with Research Centre Imarat (RCI, DRDO
Lab) for the manufacturing of Ceramic Radomes (GELCAST Process).
DIVERSIFICATION PLAN:
As part of BDL’s diversification plan, we have identified new verticals such as guided bombs, drone-delivered payloads, warhead
manufacturing, products for space applications and propellants. These endeavors are expected to create new business opportunities
Apart from missiles, which have been the mainstay of BDL, infrastructure is being set up in the Jhansi plant for the manufacture of
rockets and propellants. Production will commence on receipt of orders from the Indian Armed Forces with ToT from the foreign
technology partner.
NEW INFRASTRUCTURE:
To support our growth, BDL has undertaken initiatives to set up new infrastructure facilities, including the RF SEEKER facility,
Warhead Manufacturing Facility, SMT Line and High Computing Testing Facility, State-of-the-Art Stores and Environmental Test
Facility, and a modular Automatic Storage and Retrieval System facility. These initiatives will enhance our self-reliance and contribute
to BDL’s Atmanirbhar campaign.
QUALITY SYSTEMS:
Being a missile manufacturing company and producing single-shot devices, the quality of the product is of paramount importance, and
our products should work the first time and every time. Hence, these products require stringent quality standards and a high degree of
reliability. In pursuit of this objective, BDL has adopted and maintains international quality standards. As you are aware, the production
units in Kanchanbagh and Bhanur are already certified with the International Aerospace Quality Management Standard AS 9100D.
BDL’s corporate office has been re-certified with ISO 9001:2015 by the certification body, M/s Novo Star Management Systems
Solution India Pvt. Ltd.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 5
NEW INITIATIVES:
In the spirit of Atmanirbharta in defence, BDL has taken up many new initiatives during the year. In this endeavour, Hon’ble RM
inaugurated the Warhead Manufacturing Facility at the BDL Bhanur Unit, the Seeker Manufacturing Facility at the BDL Kanchanbagh
Unit, and the Central Storage Facility at the BDL Visakhapatnam Unit.
RESEARCH AND DEVELOPMENT (R&D):
Research and Development (R&D) remain crucial for BDL, and we continuously work on new product development and the up-
gradation of existing products to meet customer requirements.
CORPORATE GOVERNANCE:
BDL has a well-established relationship between Company’s Management, its board, its shareholders, and other stakeholders. With
its well-laid-out principles, policies, procedures, and clearly defined responsibilities and accountabilities, BDL has the perfect means
of attaining its objectives and systems in place for monitoring the performance.
BDL conducts business with the highest ethical standards and prohibits all forms of bribery and corruption across all units of the
organisation. During the year under review, no such instances of bribery or corruption were reported.
BDL’s activities are monitored by several external agencies like the Statutory Auditors, Comptroller and Auditor General of India, CVC,
MoD (Dept. of Defence Production), etc.
I am glad to inform you that BDL has been consistently rated “excellent” by the MoD in the Corporate Governance category, which
itself is a testimony to the established mechanisms, relations, regulations, and processes by which it is governed.
CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY DEVELOPMENT:
BDL is conscious of its responsibilities towards society, and as per the provisions of the Companies Act, 2013, BDL is spending 2% of
the average net profits of the immediate three preceding financial years towards CSR activities. The core areas of focus under CSR are
healthcare, nutrition, education and literacy, skill development and sanitation, PM TB Mukth Abhiyan, Sahara hostel for Veer Naaris,
etc. BDL, as per DPE Guidelines, has also ventured into aspirational districts and underdeveloped areas in Telangana and Andhra
Pradesh to undertake corporate social responsibility (CSR).
Some of the major projects taken up during the year are as follows:
¾¾ Establishment of Molecular Oncology Dept. and Procurement of equipment at MNJIO and Regional Cancer Centre, Hyderabad,
Telangana State, with an estimated budget of ₹100 lakh, wherein BDL is supporting up to ₹75 lakh.
¾¾ Fitment of Cochlear Implants to Children with Hearing Impairment through ALIMCO in Telangana and Andhra Pradesh, with an
Outlay of ₹335 lakh
¾¾ Distribution of aids and appliances, including Artificial Limbs and Callipers, to Persons with Disabilities (PwDs) through ALIMCO
in Aspirational Districts of Telangana, with an estimated budget of ₹50 lakh
¾¾ Awareness creation and supply of sanitary napkins to girl students of government schools in Telangana, through NIRD&PR, with
an outlay of ₹100 lakh.
¾¾ Construction of Panah (Sahara) Hostel for Veer Naaris (Naval Widows) with an estimated budget of ₹250 lakh, wherein BDL is
supporting up to ₹200 lakh
¾¾ Supporting the Dokra and Terracota Craft Development Project at Kumurumbheem Asifabad (Aspirational District), Telangana,
with an estimated budget of ₹76.35 lakh
¾¾ Contributed for Pradhan Mantri TB Mukth Abhiyan towards nutrition support to TB patients at Jayashankar Bhupalpally and
Mulugu District of Telangana State to the extent of ₹35 lakh.
WAY FORWARD:
The year 2022–23 ended with turnover of ₹2489.39 crore as compared to ₹2817.40 crore of previous financial year. The execution
of orders got hampered due to various operational and technical challenges such as design improvements, delays in receipt of critical
electronic components etc. BDL is taking all steps to overcome these constraints and looking forward to execute the orders within
the given time frames of the contracts.

6 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

In addition to above, BDL has now started concentrating on export opportunities. Even though our main customers are the Indian
Armed Forces, Company is exploring new markets for immediate growth. Many leads have been received from friendly foreign
countries which are been pursued vigorously to convert them into firm orders. In order to sustain business and grow, BDL is making
all efforts to ensure that these orders are executed within the delivery schedule with high quality at a competitive price.
The government is putting a lot of restrictions on imports and giving impetus to reduce foreign exchange outflow, hence the
importance of enhancing indigenization for self-reliance is noted. In R&D, we have increased the expenditure and extended all the
support. Emphasis is being laid on timelines for R&D Projects. Accordingly, marketing efforts are put in place to generate revenue
from successful R&D Projects.
FUTURE OUTLOOK:
BDL is going to witness high growth in the coming years. As on 01 April, 2023, the order book position of BDL is ₹20054 Crore
(Net). We are further able to consolidate our order book with more orders that are in various stages of finalisation and are expected
to materialise in 2023–24.
The positive Indigenization List brought out by the Gol in terms of restriction of imports in different phases has opened up an
opportunity to get continuous orders for these products for BDL from the Indian Armed Forces in the ensuing years, which will help
to improve the BDL order book as well as help further growth of the company.
In the export market, there is interest in BDL’s products like Akash Weapon Systems from potential buyers. BDL is in the process of
converting the leads received into orders. In order to further consolidate the order book of the company, there is a huge emphasis laid
by BDL on the necessity of realising export orders, and the company is pursuing the same aggressively.
BDL is confident in the realisation of the potential orders due to the policy initiatives of the government and the ease of doing
business in the country.
BDL is also investing in R&D activities both in-house and in association with DRDO for various development and production
programmes. BDL is also entering into various agreements with foreign OEMs, both for manufacturing in India as well as joint
development programmes.
BDL’s future prospects appear promising, buoyed by a robust order book position and a stream of anticipated orders in the pipeline.
In addition to that, the right support and policy initiatives from the Government of India further bolster the positive outlook ahead
for your Company.
ACKNOWLEDGEMENT:
I wish to place on record, on behalf of the entire BDL family, our sincere thanks and gratitude to investors and shareholders who have
reposed trust in this company and continued to support us in all our endeavours through this financial year. I also look forward to the
same support from investors in the years to come.
My special thanks also go to the MoD, Government of India, DIPAM, State Governments, Customers, Inspection Agencies, DPSUs, our
vendors, Employees of BDL and all the agencies involved directly or indirectly in the growth of this company.
I also thank the board members for their valuable guidance and encouraging support in the functioning of the company.
Finally, let me assure you that BDL is poised to reach greater heights. The entire fraternity of BDL will strive to achieve the desired
results and exceed the investors’ expectations.
I am proud of what we’ve accomplished together in the past few years, and I am even more optimistic about the opportunities ahead.

Jai Hind!!!

Cmde A Mahavarao (Retd)

Chairman and Managing Director
DIN: 09808949

Date : 04 August 2023

Place : Hyderabad

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 7
Our Products
BDL is the leading DPSU in India in manufacturing guided missile systems. The company has a
product portfolio consisting of Surface to Air Missiles (SAMs), Air-to-Air Missiles, Anti-Tank Guided
Missiles (ATGMs), Underwater weapons, Launchers, Countermeasures and Test Equipment. The
company also undertakes life-extension and refurbishment of missile systems.

Akash SAM Long Range SAM (“LR SAM”) and Astra Weapon System
The Akash Surface to Air Missile ( SAM) Medium Range SAM (“MR SAM”) Astra is an indigenously developed
is an all weather area defence system The SAM is a high response quick Air-to-Air Beyond Visual Range Missile
which can engage multiple targets reaction vertical launch supersonic comprising of Astra Missile and
simultaneously. The Akash SAM can missile to neutralise enemy aerial Launcher
target helicopters, fighter aircraft and threats such as missiles, aircraft, guided
unmanned aerial vehicles. In addition bombs and helicopters.
to the Akash SAM, we also supply the
ground support system and construct
infrastructure facilities for the Akash
SAM to our customers.

The Milan 2T ATGM The Konkurs – M ATGM The INVAR (3 UBK 20) ATGM
The Milan 2T ATGM is a man portable The Konkurs – M ATGM is a second The INVAR (3 UBK 20) ATGM is a
second generation ATGM with a generation, semi-automatic tube second generation plus mechanized
tandem warhead to destroy tanks. The launch optically tracked, wire guided infantry weapon which can be fired
Milan 2T ATGM can target both moving and canard controlled missile which from the gun barrel of a T-90 tank to
and stationary targets. has been designed to destroy moving destroy armored vehicles.
and stationary armoured targets. The
Konkurs – M ATGM can be launched
from vehicles and ground launchers.

8 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Our Products

CMDS Anti Torpedo Decoy Launching Submarine Fired Decoy (“SFD”)

The CMDS is a micro controller chaff System (“Anti Torpedo System”) The SFD acts as preferred target in the
and flare based airborne defence The Anti Torpedo System is meant presence of an own submarine to a
system. The CMDS can be activated by to counter the threat posed to any passive or active homing torpedo.
the pilot or the radar warning receiver submarine by any active and / or passive
of the aircraft. The CMDS provides homing torpedo.
protection to the aircraft against radar
guided and heat seeking missiles (air
and ground) by dispensing chaff and /
or flare payloads.

Heavy Weight Torpedo

Heavy Weight Torpedo is a ship launched, electrically propelled
Light Weight Torpedo underwater weapon equipped with one of the most advanced
The light weight torpedo can be automatic guidance systems. The weapon system uses its own
launched from a ship or a helicopter. intelligence in tracking the target
The light weight torpedo is used for
anti-submarine warfare.

Launchers for the Konkurs M ATGM Test Equipments

and the Milan 2T ATGM

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 9
Financial Highlights
Revenue from Operations (in INR Cr) EBITDA (in INR Cr) & EBITDA Margin

3500 1000 30%

3,069.4 3,104.9
2,817.4 900 755.5
3000 25.8% 25%
2,489.4 800 24.3% 726.1
2500 700 622.1
20.3% 20%
1,913.8
2000 600 16.4%
500 344.7 15%
1500 408.6
400
1000 10%
300
500 200 5%
100
0
FY19 FY20 FY21 FY22 FY23 0 0%
FY19 FY20 FY21 FY22 FY23
EBITDA (in INR Cr) EBITDA Margin

PAT (in INR Cr) Net Worth (in INR Cr)

3500 3211.49
3030.56
600 534.9
499.9 3000 2,684.8
2,606.8
500 422.6 2,268.6
2500
400 352.2
2000
300 257.8 1500
200 1000
100 500
0 0
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23

Return on Equity (in %) Total Dividend (in INR Cr) & Dividend Payout Ratio

25% 180 52.3% 55%

21.9%
20.0% 160 48.6%
20% 50%
17.5% 140
120 45%
15%
100
9.7% 11..3% 40%
80
10%
60 30.4% 35%
30.1% 30.1%
5% 40
30%
20 127 161 135 152 171
0% 0 25%
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Total Dividend (in INR Cr) Dividend Payout Ratio

Trade Receivables (in INR Cr) & Turnover Ratio (Days) Inventory (in INR Cr) & Turnover Ratio (Days)
3000 350 2000 1,822.4 300
2,676.2
315 266
300 1800 1,664.5 1,654.5
2500 281
267 250
1600
250 1,397.0
2000 1,884.5 1400
224 212
214 200
194
1,475.2 200 1200 198
1,495.4 1,446.2
1500 1000 856.5 150
150
800
1000 100
100 600 101

500 400 50
50
200
0 0 0 0
FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Trade Receivables (in INR Cr) Turnover Ratio (Days) Inventory (in INR Cr) Turnover Ratio (Days)

10 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

TEN YEARS AT A GLANCE

Particulars Units 2022-23* 2021-22* 2020-21* 2019-20* 2018-19* 2017-18* 2016-17* 2015-16* 2014-15 2013-14
Sales (Gross) ₹ Cr. 2489.39 2817.40 1913.76 3104.87~ 3069.35 &
4587.60 4886.62 4159.97 2799.68 1779.89
Changes in ₹ Cr. 19.04 84.36 128.91 (503.66) 165.87 53.70 124.38 137.86 (29.63) 24.60
WIP/SIT
Value of ₹ Cr. 2508.43 2901.76 2042.67 2601.21~ 3235.22 4641.30 5011.00 4297.83 2770.05 1804.49
Production
Material ₹ Cr. 1210.33 1263.37 970.08 1014.09~ 1818.97 2907.59 3125.23 2620.30 1855.10 1226.01
Consumption
Value Added ₹ Cr. 1298.10 1638.39 1072.59 1587.12~ 1416.25 1733.71 1885.77 1677.53 914.95 578.48
Profit Before ₹ Cr. 481.80 709.91 340.88 742.45 671.36 773.82 802.81 847.31 614.19 508.59
Tax
Profit After Tax ₹ Cr. 352.17 499.92 257.77 534.90 422.59 528.15 524.06 564.88 418.57 345.51
Equity ₹ Cr. 183.28 183.28 183.28 183.28 183.28 183.28 122.19 97.75 115.00 115.00
Reserves & ₹ Cr. 3028.22 2847.28 2501.47 2423.55 2085.26 1773.10 2072.79 1702.27 1418.58 1102.97
Surplus
Gross Block ₹ Cr. 1415.68 1451.08 1368.51 1291.36 1219.61 1048.62 869.66 746.38 940.04 834.56
([Link])
Inventory ₹ Cr. 1822.44 1654.45 1397.01 856.52 1664.53 1925.87 2240.42 2057.66 1480.12 1382.51
Trade ₹ Cr. 1446.23 1495.36 1475.20 2676.19~ 1844.53 2208.13 1735.36 1478.22 865.72 398.81
Receivables
Working ₹ Cr. 5394.18 2942.18 2378.03 2259.40 1390.38 1085.68 1569.75 2052.30 2740.34^ 812.68$
Capital
Capital ₹ Cr. 3155.08 2973.45 2637.01@ 3191.76 2347.34 1954.05 2326.87 2745.18 3134.20^ 1172.29$
Employed
Net Worth ₹ Cr. 3211.49 3030.56 2684.75 2606.83 2268.55 1956.38 2194.98 1800.02 1533.37 1217.75
Number of Nos. 2560 2674 2812 2950 3034 3095 3182 3132 3183 3266
Employees
Employee ₹ Cr. 532.46 570.66 501.09 534.03 534.21 529.34 448.39 326.23 313.07 307.28
Costs
Value Added ₹ 2.44 2.87 2.14 2.97~ 2.65 3.28 4.21 5.14 2.92 1.88
per ₹ of Wage
Value Added ₹ 50.71 61.27 38.14 53.80~ 46.68 56.02 59.26 53.56 28.74 17.71
per Employee Lakh
Earnings per ₹ 19.22 27.28 14.06 29.18 23.06 26.65 24.51! 42.73! 36.40! 30.04!
Share (EPS)
~
Re-adjusted due to regrouping of certain items of 2019-20 in 2020-21.
&
Sales are after deduction of LD as per Ind AS 115 from 2018-19 onwards.
* Amounts from 2015-16 onwards are shown as per Ind AS.
@
Capital Employed for FY 2021-22 onwards is worked out as per the Guidance Note issued by ICAI on Schedule III to Companies Act 2013.
Accordingly, Capital Employed for FY 2020-21 is also changed from ₹ 3239.01 to ₹ 2637.01 but this doesnot represent any fall.
$
Re-adjusted due to regrouping of Current Assets and Current Liabilities of 2013-14 in 2014-15.
^
Re-adjusted due to regrouping of Current Assets and Current Liabilities of 2014-15 in 2015-16.
!
Splitting of shares from ₹ 1000/- to ₹ 10/- during the year 2017-18 and accordingly EPS is readjusted in previous years for Face Value
of ₹ 10/-

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 11
DIRECTORS’ REPORT
Dear Members,
Your Directors presents the 53rd Annual Report together with the audited financial statements of the Company for the year ended
31 March 2023.
1. HIGHLIGHTS ON OPERATIONS:
• Despite facing challenging circumstances and technical challenges, your Company achieved a sales turnover of ₹2489 Crore
during the fiscal year. This is a slight decrease compared to the sales turnover of ₹2817 Crore in the previous year.
• On 2nd July 2022, the Hon’ble Raksha Mantri Shri Rajnath Singh visited BDL along with Vice Chief of Air Staff Air Marshal.

• The Hon’ble Raksha Mantri inaugurated the Warhead facility and virtually inaugurated the RF (Radio Frequency) Seeker facility
and Central Storage facility. These facilities are essential for realizing Atmanirbharta in Defence manufacturing by the Company.

12 BHARAT
DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

• During the Bandhan Ceremony at DefExpo-2022 and Aero India-2023 new products were launched.
• A contract was received for the supply of an upgraded version of the Akash Weapon System to the Indian Army, worth about
₹8161 Crore.
• The Company received its highest-ever export order of USD 255.4 million for SAMs (Surface-to-Air Missiles) and USD 27 million
for ATGMs (Anti-Tank Guided Missiles) from friendly foreign countries.
• Contracts were received for the supply of Counter Measures Dispensing System (CMDS) from Bharat Electronics Limited, valued
at ₹261 Crore, and from Hindustan Aeronautics Limited, Bangalore, valued at ₹77.18 Crore.
2. FINANCIAL RESULTS AND PERFORMANCE HIGHLIGHTS:
2.1 Performance of the Company in financial terms is summarized below:

₹. in Crore % of Increase/
Particulars
2022-23 2021-22 (Decrease)

Sales/Revenue from Operations 2489 2817 (11.64)

Value of Production 2508 2902 (13.58)
i) Import Material Consumed 345 271 27.31
ii) Indigenous Material Consumed 865 992 (12.80)
Total Material Consumed 1210 1263 (4.20)
Value Added 1298 1639 (20.81)
Profit Before Tax 482 710 (32.11)
Profit After Tax 352 500 (29.60)
Earnings per share# (in Rupee) 19.22 27.28 (29.55)
# EPS has been calculated based on profits excluding the other comprehensive income.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 13
 2.2 Following data reflect the financial position of the Company:

₹.in Crore % of Increase/

Particulars
2022-23 2021-22 (Decrease)
Gross Block (Excl. CWIP) 1416 1451 (2.41)
Accumulated Depreciation 607 577 5.20%
Net Block 809 874 (7.44)
Working Capital (Net) 5394 2942 83.34%
Capital Employed 3155 2973 6.12%
Net Worth 3211 3031 5.94%
* Figures have been reclassified and regrouped, wherever necessary.
2.3 During the year under review, your company achieved revenue from operations of ₹2489 Crore despite facing very
challenging circumstances and technical issues, compared to the revenues of ₹2817 Crore in the previous year. The main
reasons for the revenue shortfall were, delays in receiving imported electronic items and critical explosive materials from
Foreign Original Equipment Manufacturer (OEM), design changes in the production of naval products and delays in receiving
MR-SAM kits from OEM, which resulted in non-completion of production. Your company is expected to recover from this
shortfall in the current financial year 2023-24.
Despite the aforementioned technical issues, your company performed well and achieved a turnover of ₹2489 Crore and
a production value of ₹2508 Crore. The profit before tax (PBT) was ₹482 Crore, a decrease from the previous year’s ₹710
Crore. The profit after tax amounted to ₹352 Crore, down from ₹500 Crore in the previous year. The EBITDA margin was
16.40%, a decrease from 25.77%. This decrease in margin is mainly attributed to a decline in manufacturing activities and
changes in the product mix.
2.4 The major products executed during the year are ATGMs, Akash-SAM, Varunastra and MR-SAM. The order book position
of the company as on 01 April 2023 is about ₹ 20054 Crore (Net).
2.5 Future Outlook:
Your company expects significant growth in the coming years, considering its consolidated order book position, which has
reached a staggering figure of ₹20054 Crore as of April 1, 2023. The order book position is expected to further increase as
several orders are in various stages of finalization. Your company is also actively promoting its products in the international
market and has successfully converted some export leads into orders with friendly foreign countries.
In recent years, your company has forged alliances with various foreign and Indian companies through Memorandums of
Understanding (MoUs) across a range of business interests. These alliances include Thales, Naval Group, MBDA Missile
Systems Ltd, Rafael Advanced Defence System Ltd (Naval Division), Dassault Aviation Pvt Ltd, Defence Research and
Development Organisation (DRDO), Larsen and Toubro (L&T), Ashok Leyland Defence Systems Ltd, Newspace Technologies
Pvt Ltd, IIT-Madras, and Tamilnadu Industrial Development Corporation Ltd (TIDCO). These partnerships will create new
opportunities for manufacturing state-of-the-art weapon systems by your company in India, catering to both domestic and
international markets. Your company is confident that these alliances will elevate its standing in the coming years.
Your company will continue its efforts to make the Indian Armed Forces Atmanirbhar (self-reliant) by reducing dependency on
imported arms in the future. In this direction, your company has placed a strong emphasis on the concept of indigenization
across all its programmes. It has commenced the indigenization of components and subassemblies that were previously
imported and successfully achieved indigenization of 47 critical items over the past four years, resulting in significant
foreign exchange savings. With an average indigenization percentage ranging between 80-90%, your company’s philosophy
has led to reduced import costs and increased the ability to offer competitively priced products to the Indian Armed Forces.
The Government of India, in its continuous pursuit of self-reliance in defence manufacturing under the ‘Aatmanirbhar Bharat
Abhiyan’, has periodically issued a Positive Indigenization list of sub-systems/assemblies/sub-assemblies/components. As
a result, the future outlook for your company appears promising buoyed by a robust order book position. With decades of
experience, your company is well-prepared to face upcoming challenges.

14 BHARAT
DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

3. FIXED DEPOSITS FROM PUBLIC:

The Company did not accept any fixed deposits from Public during the year, and there was no outstanding Fixed Deposits at the
beginning/end of the year. Accordingly, there was no default in payment of deposits/interest thereon.
4. Dividend & transfer to general reserve:
Your Company has a consistent track record of Dividend Payment. The Board has recommended a Final Dividend of ₹1.20/- per
equity share of ₹10/-each amounting to ₹21.99 Crore for the year 2022-23. Further, your Company has paid interim dividend
of ₹8.15 per share amounting to ₹149.37 Crore in February, 2023. An amount of ₹150 Crore is being transferred to General
Reserve for the year 2022-23.
Commodore Siddharth Mishra (Retd), the then Chairman & Managing Director, BDL presented the cheque for ₹ 111.9203 Crore,
being the interim dividend pertaining to the Government of India shareholding in BDL, to Shri. Rajnath Singh, Hon’ble Raksha
Mantri at New Delhi. Shri. Giridhar Aramane, Secretary (Defence Production), Shri. T. Natarajan, Additional Secretary (Defence
Production), Ministry of Defence and Shri. Nuka Srinivasulu, Director (Finance) from BDL were present on the occasion.

5. CAPITAL STRUCTURE:
The paid up capital of the Company as on 31st March, 2023 stood at ₹183.28 Crore (18,32,81,250 equity shares of ₹10/- each).
The Authorized Capital of the Company is ₹200 Crore (20,00,00,000 equity shares of ₹10/- each) as on 31st March 2023.
As on 31 March 2023, the Govt. of India shareholding in the Company stands at 74.93% (representing 137,325,527 equity
shares of ₹10/- each).
6. PERFORMANCE AGAINST MoU:
Your Company signs a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India.
The performance of the Company for the year 2021-22 was rated as “Very Good” and the performance for the year 2022-23 is
under evaluation.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 15
7. MODERNIZATION & UPGRADATION:
During the year, an amount of ₹113.91 Crore has been spent towards Capital Expenditure (CAPEX) programme for the
modernization of Plant & Machinery and other infrastructure development. The majority of this amount was dedicated to
establishing the Warhead building, RF Seeker facility, Storage facility, and firefighting systems. Additionally, your company has
planned to spend approximately ₹100 Crore during the current financial year 2023-24 on various CAPEX programmes, including
Phase-II infrastructure development at Ibrahimpatnam and for enhancing the integration facility at Vizag.
Your company is making determined efforts to increase the indigenization content in the manufacturing of ATGMs, SAMs, Air to
Air Missiles, and Torpedoes. This objective aims to enhance self-reliance and reduce dependence on imports.
8. RESEARCH & DEVELOPMENT:
Your company acknowledges that Research and Development (R&D) plays a pivotal role in the growth of the organization. To
cater to the requirements of the Indian Armed Forces, your company has identified several products for R&D.
The following table shows the recent trend of in-house R&D expenditure:

Particulars 2022-23 2021-22 2020-21

Sales Turnover (Gross) (₹ in Cr) 2489.39 2817.40 1913.76
R&D expenditure (₹ in Cr) 152.03 48.14 42.95
R&D expenditure as % of Sales Turnover 6.11% 1.71% 2.24%
PBT 481.80 709.91 340.88
R&D expenditure as % of PBT 31.55% 6.78% 12.60%

9. PROCUREMENT FROM MSMEs:

In compliance with the Procurement Policy of the Government of India, your company has surpassed the mandated procurement
requirement of 25% from Micro, Small, and Medium Enterprises (MSMEs). During the year 2022-23, your company procured
29.82% of goods and services, amounting to approximately ₹487.98 crore, from MSMEs out of its total procurement of ₹1636.61
crore. By achieving the mandated target of 25% from MSMEs, your company has demonstrated its commitment in supporting
and promoting the growth of these enterprises.
Vendor Development:
Your company endeavors to expand its vendor base through special drives and by offering free registration in certain cases and
on specific occasions. Throughout the year, your company conducted 7 vendor meets, resulting in over 1000 registered vendors
as of the current date. Furthermore, your company has implemented an updated Integrity Pact in accordance with the directives
of the Central Vigilance Commission’s latest circular issued on 25th January 2022, and adheres to the Standard Operating
Procedure outlined therein.
Government e Market Place (GeM):
Your company registered as both a Buyer and Seller with the Government e-Marketplace (GeM). GeM is utilized for procuring
common items and services. Throughout the year, your company has successfully procured common goods and services worth
approximately ₹125 crore through GeM. This demonstrates your company’s active engagement and utilization of GeM for
streamlined procurement processes.

16 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

10. Exhibitions:
During the year, the Senior Executives and Directors have participated in National and International Exhibitions. The details
along with the photographs of some of the exhibitions are as follows

Hon’ble President of India Smt Droupadi Murmu being briefed about Hon’ble Prime Minister of India Shri Narendra Modi at BDL stall during
BDL products during an exhibition held at Hyderabad on 28 Dec 2022. an exhibition at Vadodara on 30 Oct 2022.

Honble Raksha Mantri Shri Rajnath Singh at BDL pavilion during Aero Raksha Rajya Mantri Shri Ajay Bhatt at BDL pavilion during Aero India –
India – 2023. 2023.

Chief of Defence Staff General being briefed about product display Chief of the Army Staff General being briefed about product display
during Aero India - 2023. during Aero India - 2023.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 17
 Chief of Naval Staff Admiral at BDL pavilion during Defexpo – 2022. Chief of the Air Staff Air Chief Marshal being briefed about the latest
products displayed during Aero India – 2023 on his visit to BDL pavilion.

A delegation from Armenia led by Deputy Defence Minister was briefed A delegation from Bahrain was briefed about products being offered for
about BDL products by CMD, BDL on visit to BDL pavilion during Exports by BDL on their visit to BDL pavilion today during DefExpo -
AeroIndia 2023 2022.

A delegation led by CEO, Al Tariq, UAE visited BDL Pavilion during A delegation led by Chief of Staff of the Egyptian Air Force visited BDL
AeroIndia2023. BDL and Al Tariq entered into MoU to jointly produce Pavilion during Aero India 2023.
Long Range Precision Guided Munition kits in India.

18 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Chief of Defence Staff, Algeria visited BDL stall during LAAD - 2023 Defence Minister Republic of Armenia HE Suren Papikyan -
exhibition held at Brazil. Defexpo-2022.

Egypt Delegation -Defexpo-2022 Honoured by visit of Minister of National Defence, Republic of Angola at
BDL Pavilion during Defexpo-2022.

UAE Delegation Defexpo-2022. Vice Minister of EL Salvador at BDL pavilion during Aero India 2023.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 19
11. EXPORTS:
Your company has placed significant emphasis on the export of Weapon Systems. To explore the export potential of its products,
identify potential markets, and pursue export opportunities, an export cell has been established within the Business Development
Division of BDL. The products offered by your company are state-of-the-art, designed indigenously, competitively priced, and
not heavily reliant on any foreign Original Equipment Manufacturers (OEMs). With existing facilities, your company is well-
prepared to meet both domestic and export demands.
Several leads have been received from various friendly foreign countries for the export of products such as the Akash Weapon
System, ATGMs, Air to Air Missile (Astra), Smart Anti-Airfield Weapon, Helina (Air-to-Surface Weapons), Light Weight Torpedo,
Heavy Weight Torpedo (Underwater weapons), Counter Measures Dispensing System, and Anti-Submarine Warfare Suite
(Counter Measure Systems) etc.. These leads are actively being pursued by the export cell, which is engaged in interactions
with overseas customers to achieve export targets. As a result, your company has secured orders for the export of Light Weight
Torpedoes, Counter Measures Dispensing System, ATGM, and Akash Weapon System from friendly foreign countries. Channel
Partners/Agents have been appointed in several countries to promote your company’s exportable products. Your company
has also participated in various Foreign Defence Exhibitions to showcase its products and facilitate one-on-one meetings with
participants from the Armed Forces/Ministries of Defence of other countries.
To strengthen international engagement, BDL is working closely with Indian Embassies/Defence Attaches to arrange meetings
and visits with stakeholders from foreign countries. Furthermore, plans are underway to open Representative Offices in three
foreign countries.
During the year, your company received its highest-ever export order of USD 255.4 million for SAMs and USD 27 million for
ATGMs from friendly foreign countries. As of April 1, 2023, the total export order book of BDL stands at ₹2586 Crore, reflecting
the growing success in the international market
12. ATMA NIRBHAR BHARAT & INDEGINISATION:
As part of its contribution to the creation of an Atmanirbhar Bharat (Self-Reliant India), your company has been focused on
indigenizing technology from the moment a contract is signed. Your company manufactures missiles under Technology Transfer
(ToT) agreements with DRDO and with Foreign Original Equipment Manufacturers (OEMs). The ToT for foreign OEM designed
products is only 60%, however your company has achieved indigenization levels of more than 80% to 90% in many of its products
through its indigenization initiatives. In the case of DRDO-designed products, most of them have achieved indigenization levels
of more than 90%. Your company is putting forth maximum efforts to achieve higher levels of indigenization for all its products.
The “Make in India” initiative is an ongoing process, and under this scheme a number of initiatives were taken by GoI/MoD.
Your company’s new product under development falls under the Make-II project category of the Indian Indigenously Designed
Developed and Manufactured (Indian IDDM) classification in the Defence Procurement Procedure. Successful completion of this
project will establish India as self-reliant in manufacturing 3rd generation ATGMs.
Your company is utilizing the Srijan Portal, a Ministry of Defence indigenization portal, which serves as a one-stop-shop for
vendors to engage in indigenization efforts. BDL has uploaded 1187 items on the portal, including all the items imported by the
company. Out of these items, vendors have shown interest in 413 items, and 36 sanction orders have been placed. Necessary
technical support is being provided to Micro and Small Enterprises (MSEs) to encourage them to produce quality items. Your
company is also fostering collaboration with startup companies, identifying problem definitions for them to work on and develop
solutions. MoUs are being signed with these companies to support their growth and create business opportunities.
An Indigenization Plan has been formulated by your company for a five-year period (2020-21 to 2024-25). The plan and its
achievements for the last three years are as follows:

Year [Link] items Targeted for Indigenisation [Link] items Indigenized

2020-21 72 items 79 items
2021-22 53 items 53 items
2022-23 14 items 16 items
Furthermore, the Ministry of Defence has issued a Positive List of Indigenization on December 27, 2021, as part of the continuous
effort towards self-reliance in defence manufacturing under the ‘Aatmanirbhar Bharat Abhiyan’. This list includes 2500 items that
have already been indigenized, along with 351 items that will be procured from the Indian industry within specified timelines.

20 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Out of the total 2851 items, 50 items belong to BDL, and as of now, your company has achieved indigenization for 37 of these
items.
Additionally, on March 28, 2022, the Ministry of Defence issued a 2nd Positive Indigenization list of 107 Line Replacement Units
(LRUs)/sub-systems for indigenization by Defence Public Sector Undertakings (DPSUs), with an embargo on imports beyond the
indicated timelines. Out of these 107 items, 4 items belong to BDL, providing an opportunity for your company to scale up its
operations.
Furthermore, on August 28, 2022, the Ministry of Defence issued a 3rd Positive Indigenization list of 780 Line Replacement
Units (LRUs)/sub-systems for indigenization by DPSUs, with an embargo on imports beyond the specified timelines. Out of these
780 items, 2 items belong to BDL, presenting another opportunity for your company to expand its operations.
13. MANPOWER AND RESERVATION OF POSTS FOR SCs/STs:
13.1 The Company has been following Presidential Directives of the Government with regard to reservation of posts for SCs/
STs/OBC/EWS in recruitments.
13.2 Total manpower strength as on 31 March 2023 is at 2560 (including four functional directors). Of the total strength, 85 are
ex-servicemen, 503 are of Schedule Caste, 209 are of Scheduled Tribes and 781 are of OBC category. The percentage of
Scheduled Caste and Scheduled Tribes in respect of Employees is at 19.65% and 8.16% respectively.
13.3 The No. of Scheduled Caste, Scheduled Tribes, OBC and EWS in various categories of posts as on 31 March 2023 is given
below:

Number of Employees

Category Total Strength Scheduled Castes Scheduled Tribes OBC EWS

31-03-2023 31-03-2022 31-03-2023 31-03-2022 31-03-2023 31-03-2022 31-03-2023 31-03-2022 31-03-2023 31-03-2022

Group-A 801 755 149 145 86 81 187 158 4 -

Group-B 2 65 0 16 0 4 1 22 - -
Group-C 1571 1649 304 316 109 109 525 527 - -
Group-D 171 189 46 48 14 14 66 72 - -
Temporary 11 12 4 4 2 2 - -
Total 2556* 2670* 503 529 209 208 781 781 4 -

*excluding four functional directors & CVO.

13.4 Recruitment of employees in Scheduled Caste, Scheduled Tribes, OBC, EWS during 2022-23 is given below:

Classification Total Total Recruitment Reservation Recruitment made

of posts Vacancies Released made of posts during the year 2022-23
(1) (2) (3) (4) (5)
SCs STs OBC EWS SCs STs OBC EWS
Group-A 55 45 9 3 11 6 2 3 13 4
Group-B 1 0 0 0 0 0 0 0 0 0
Group-C 0 0 0 0 0 0 0 0 0 0
Group-D 0 0 0 0 0 0 0 0 0 0
Total 56 45 9 3 11 6 2 3 13 4

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 21
 13.5 Employment of Women:
As per the recommendation No.51, Para (ii)(a) of the National Commission for Women (NCW) in its Annual Report for the
year 1995-96, the employment position of Women as on 31 March 2023 is given below as directed by the Ministry of
Defence, vide their letter Nos. 39(6)/99/D(B&C), dated 27 August 1999.
I. Executives

Grade No. of Employees Women Percentage

I 2 - -
II 135 23 17.04
III 127 19 14.96
IV 241 34 14.11
V 93 10 10.75
VI 164 14 8.54
VII 33 2 6.06
VIII 7 1 14.29
IX 1 - -
Functional Directors 3 - -
CMD 1 - -
Total 807 103 12.76
* CVO is not included in this report.
II. Non-Executives

Grade No. of Employees Women Percentage

WG-0 - - -
WG-1 3 - -
WG-2 60 11 18.33
WG-3 64 6 9.38
WG-4 125 23 18.40
WG-5 293 18 6.14
WG-6 159 30 18.87
WG-7 200 30 15.00
WG-8 131 16 12.21
WG-9 32 3 9.38
WG-10 101 4 3.96
WG-11 15 - -
WG-12 559 45 8.05
Total 1742 186 10.68
13.6 Persons with Disabilities (pwd) as on 31 March 2023:
The total number of Physically Challenged employees as on 31 March 2023 is 98 and its percentage to total employees
works out to 3.83%.

HI LD VI Total
Group-A 5 6 12 23
Group-B 0 0 0 0
Group-C 8 19 39 66
Group-D 3 2 4 9
Total 16 27 55 98

HI- Hearing Impaired, LD-Locomotive Disability, VI-Visually Impaired.

22 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

14. Human Resource Development:

During the year under review, your company conducted training programmes to enhance the knowledge, skills, and development
of its employees. A total of 839 executives and 393 non-executives participated in these training programmes, covering topics
that were knowledge-based, development-oriented, and tailored to meet the company’s specific needs. The training programs
were conducted both in-house and at external agencies’ premises to address both present and future requirements. In total,
6,063 man-days were devoted to training during the financial year 2022-23.
In addition to the regular training programs, your company organized several special training initiatives during the year:
1) Mid-Career Development Programme (MCDP): A two-week programme named “Abhyudaya” was launched for mid-level
executives who have completed 15 years of service in the company. The programme aimed to transform operational
managers into tactical managers. The training content incorporated a Preventive Vigilance Module in line with CVC
guidelines. Sessions on missile technology and Industry 4.0 were conducted to align with the company’s adoption of
Industry 4.0 practices. Furthermore, sessions on “Healthy lifestyle to reduce stress” and “Yoga” were organized to encourage
executives to adopt a balanced approach for overall well-being. A total of 81 mid-level executives were trained in the MCDP
in two batches during the year 2022-23.
2) Induction-cum-Orientation Programme for Management Trainees (MTs): A four-month programme named “Parichay” was
organized for the batch of 2022, consisting of 34 MTs. The programme aimed to introduce MTs to the organization and equip
them with the necessary knowledge and skills to excel as executives and contribute towards achieving organizational goals.
The programme covered various aspects of operations and included interactions with internal and external stakeholders.
This comprehensive training nurtured the MTs to become key contributors to the company’s success.
Additionally, 25 Technical MTs underwent specialized training at the Defence Institute of Advanced Technology (DIAT),
Pune, focusing on missile technology, underwater weapons, sonars, rocket launchers, and related areas.
3) On the International Day of Disabled Persons in 2022, an in-house workshop with the theme “UDAAN-Unleashing the
power within” was organized for all Persons with Disabilities (PwBDs) at BDL. The workshop featured guest speakers who
were specially-abled achievers in their respective fields. It aimed to motivate and inspire PwBDs to excel in their duties.
4) A total of 53 women employees received training on “Women Empowerment and Awareness Programme on POSH Act”
during the year 2022-23, focusing on promoting gender equality and creating awareness about the Prevention of Sexual
Harassment (POSH) Act.
5) The Department of Defence Production (DDP), Ministry of Defence (MoD), initiated MISSION RAKSHA GYAN SHAKTI
with the primary objective of promoting an intellectual property (IP) culture and encouraging the creation of IP in the
defence production sector. In alignment with this initiative, BDL trained 150 employees through a customized online
training (COLT) module during 2022-23. The programme, with a duration of approximately 16 hours, concluded with a
final assessment consisting of 30 questions to assess understanding and award a course completion certificate. A minimum
score of 60% was required to obtain the certificate.
These training initiatives highlight your company’s commitment to continuous learning, development, and fostering a
conducive work environment that empowers employees to excel in their roles.
15. PARTICULARS OF EMPLOYEES:
There were no employees of the Company who received remuneration in excess of the limits prescribed under Rule 5 of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Further, in accordance with Ministry of
Corporate Affairs Notification No. GSR 463(E) dated June 05, 2015, Government Companies are exempt from Section 197 of
the Companies Act, 2013 and its rules thereof.
16. Foreign Visits:
Your Company incurred an expenditure of around ₹2.44 Crore during the year under report towards foreign travel for business
trips.
17. Industrial Relations ANd Employee Welfare:
Your company maintains cordial and harmonious industrial relations, thanks to the cooperation and support of all employee
sections, including the Recognized Trade Union, associations representing SC, ST, OBC, Ex-Servicemen, and Officers. Statutory
and non-statutory committees such as the Works Committee, Safety Committee, Canteen Managing Committee, and Welfare
Committee contribute to maintaining discipline in the workplace.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 23
 Secret Ballot Elections were conducted simultaneously in all units of Bharat Dynamics Limited on May 6, 2022, by the Labour
Department (Central) in Hyderabad to verify the membership of Trade Unions. In the elections, Bharat Dynamics Employees Trade
Union Congress (BDETUC) Regd. No. A-4511 secured the majority of votes. Following the recommendations of the Ministry of
Labour & Employment, the management has recognized Bharat Dynamics Employees Trade Union Congress (BDETUC) as the
representative Union for the workers of the company for a period of two years starting from June 24, 2022.
Your company meticulously follows compliance with statutory welfare provisions. A Post Superannuation Medical Benefit Scheme
is in place to address the medical needs of retired employees and their family members. The Recognized Trade Union, along with
all the associations, extends full support to the management for the smooth functioning of the organization.
18. SECURITY:
The Central Industrial Security Force (CISF) is responsible for providing security and fire services at both the Kanchanbagh and
Bhanur Units. Throughout the year, CISF has played a crucial role in ensuring the security and protection of the company’s
property. The CISF team has implemented robust security measures, combining physical measures and advanced technology to
maintain the security of highly sensitive installations.
To oversee the security arrangements and the implementation of Intelligence Bureau (IB) guidelines, the Plant Security Council
is in place. Regular security review meetings are conducted by both the management and CISF to enhance security measures.
In addition to computerized photo identity cards, a Biometric Access Control System has been implemented to prevent
unauthorized entry. CCTV cameras are installed throughout the factory premises to expand the coverage of CCTV surveillance.
Door frames, metal detectors, and X-ray baggage machines are also utilized. Barricades, boom barriers, and mochas are provided
to reinforce physical security measures.
Regular security awareness programs are conducted, along with the observation of Security Week and Fire Week. Employees are
sensitized to security threats and educated on the appropriate actions to be taken during emergencies and fire accidents.
19. SAFETY:
Your company places a strong emphasis on maintaining Safety, Health, and Environment (SHE) standards. The Industrial Safety
Committee and Explosive Safety Committee meet regularly to monitor SHE practices within the company. Industrial work is
carried out in compliance with the Factories Act of 1948, while explosive safety strictly adheres to the regulations set by the
Storage & Transport of Explosive Committee (STEC-2017) under the Centre for Fire, Explosive & Environment Safety (CFEES),
Ministry of Defence, New Delhi.
The safety committee meetings are held periodically to ensure adherence to statutory norms, and any safety-related issues are
reviewed by the General Manager/Unit Head for compliance.
Industrial safety audits are conducted by the Joint Chief Inspector of Factories, Telangana State, and any observations made are
duly addressed. Annual explosive safety audits are conducted by the Centre for Fire, Explosive & Environment Safety (CFEES)
in New Delhi, and necessary actions are taken based on their observations. The company successfully completed the external
Environmental Management System (EMS) certification audit in March 2023, without any non-conformities or observations.
The 52nd National Safety Day Campaign was observed from March 4 to March 11, 2023. Various activities were conducted
throughout the week, including the administration of safety pledges at workstations, distribution of safety badges, display of
safety day banners, and competitions such as safety slogans, essays, and elocutions in Hindi, Telugu, and English. Safety quizzes
and demonstrations on basic first aid and firefighting were also organized as part of safety promotional activities.
In terms of training programs, both in-house and external training sessions are regularly conducted for employees on industrial
and explosive safety. Special medical check-ups are carried out for employees working in Electroplating and Canteen areas, while
periodic medical check-ups are conducted for employees in other departments. Fire mock drills are performed at regular intervals
to ensure preparedness for firefighting situations.
The Safety Engineering Department maintains regular communication with the Inspector of Factories, the Telangana State
Pollution Control Board (TSPCB), and the Centre for Fire, Explosive & Environment Safety (CFEES) at the Ministry of Defence,
New Delhi, to stay updated on any guidelines or updates for necessary compliance.

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

20. ENVIRONMENT AND POLLUTION CONTROL:

As per the company’s environmental policy, your company is committed to manufacturing and supplying defence products to the
Indian armed forces in an environmentally friendly manner. The key environmental commitments include:
• Protecting the environment and preventing all types of pollution.
• Fulfilling compliance obligations.
• Conserving natural resources.
• Continually improving to enhance environmental performance.
All three units of BDL, namely Kanchanbagh, Bhanur, and Visakhapatnam, have been recommended for ISO 14001:2015
(EMS) certification. External auditors conducted an audit from March 6th to March 11th, 2023, to assess pollution levels and
compliance with legal requirements as part of the re-certification process. The company has issued a circular to discourage the
use of plastics, and e-waste and hazardous waste are disposed of through agencies registered with the Pollution Control Board.
Solid waste, such as ferrous and non-ferrous metals, is disposed of through M/s MSTC, a government undertaking. Biomedical
waste is also appropriately disposed of through an agency registered with the Pollution Control Board, and proper housekeeping
practices are maintained on the premises.
Your company has implemented a Zero Liquid Discharge system, wherein treated water from the effluent treatment plant
undergoes additional treatment through reverse osmosis (RO). The RO treated water is then utilized in the Demineralized Water
(DM) plant for producing DM Water, which is used in the Electroplating Shop, CNC machines, and flow forming machines in the
Workshops. Treated water from the sewage treatment plant is also utilized for gardening purposes within the premises.
Internal audits and surveillance audits are conducted at regular intervals by certification bodies for all units. The disposal of solid
and hazardous waste is carried out through certified agencies, and environmental parameters, including ambient air quality, stack
quality of DG sets/venturi scrubbers, sewage treatment plants, effluent treatment plants, and noise levels, are tested as per
specified frequencies. Additionally, water quantity is monitored using separate water meters, and also electricity consumption is
monitored to comply with consent conditions.
By implementing these measures, your company demonstrates its commitment to environmental sustainability and compliance
with environmental regulations.
Celebration of WORLD ENVIRONMENT DAY – 2022:
World Environment Day 2022 was celebrated with great enthusiasm at all the units of BDL. To mark the occasion, banners
highlighting the importance of environmental conservation were displayed at prominent locations, and saplings were planted on
June 6, 2022. Slogan, essay writing, and quiz competitions were organized, focusing on the theme “Only One Earth - Care and
Conserve,” which emphasizes the need to live sustainably in harmony with nature. Prizes were awarded to the winners during
the valedictory function.
As part of the celebrations, Dr. G.V. Ramanjaneyulu, Executive Director from the Centre for Sustainable Agriculture, delivered
a guest lecture. The lecture covered various topics related to environmental awareness, such as environment and sustainable
agriculture, organic and natural farming practices, building community marketing systems that connect farmer cooperatives
directly with consumers, the relationship between food and the environment, climate change emergencies, and managing
productive resources.
The celebration of World Environment Day served as a platform to raise awareness about environmental issues and promote
sustainable practices, with a focus on preserving and protecting our planet for future generations

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 Smt. V. Latha, GM (Unit Head-KBU) inaugurated tree plantation at Kanchanbagh. GMs and Senior Executives, Union
Representatives and employees also participated in the plantation programme.

Cmde Girish Raghunath Pradhan (Retd.), ED (Unit Head-BU) inaugurated tree plantation at Bhanur Unit. GM, AGMs, DGMs,
Core Team Members, Trade Union Representatives and employees have participated in tree plantation program on this day.

[Link], General Manager (VU), has planted the saplings along with AGMs, DGMs and Core Team Members at
Visakhapatnam Unit. BDL Visakhapatnam unit also planted 150 saplings in Kakani Nagar near Airport on this occasion.

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

21. QUALITY:
All production divisions/units including Akash, CP-IGMP, Design & Engineering, Electronics Division of Kanchanbagh Unit, Bhanur,
and Visakhapatnam Units are certified with AS 9100D, an aerospace quality management system standard. Kanchanbagh, Bhanur,
and Visakhapatnam Units are also certified with ISO 14001:2015 (EMS), which is an environmental management system standard.
The Corporate Office is certified with ISO 9001:2015 (QMS), which focuses on quality management systems. The Material
Testing Lab, Electronics Lab, and Standard Labs are certified with ISO/IEC 17025:2017, which pertains to the competence of
testing and calibration laboratories. The Electronics Division is certified with AFQMS (Air Force Quality Management System).
Furthermore, BDL holds the ISO/IEC 27001:2013 certification for information security management systems (ISMS).
Internal audits for all ISO/AS certified divisions are conducted by the company’s own internal auditors, while surveillance audits
are carried out by certification bodies as per the prescribed frequency. Akash Division of the Kanchanbagh unit has recently
been re-certified with the Aerospace standard (AS9100:2016) by M/s Novo Star Management Systems Solutions India Pvt. Ltd.,
Bengaluru.
In addition to these certifications, your company is committed to continuously improving customer satisfaction through customer
meets and interactions with users. Corrective actions are implemented wherever necessary to drive improvement in processes
and meet customer expectations.
22. official Language (OL) Implementation:
Implementation of the Official Language (OL) Act-1963 (as amended 1967) and its rules are strictly followed by the company.
Quarterly OLIC (Official Language Implementation Committee) meetings are regularly held under the Chairmanship of the CMD
and Directors, and quarterly progress reports on the use of the official language are submitted to the relevant authorities.
In compliance with the OL Act and Presidential Orders, all papers presented before the Parliament, the Annual Report of the
Company, MoU with MoD, and briefs for various Parliamentary Committees and delegations are prepared in bilingual form and
submitted.
The First Sub-Committee of the Parliamentary Committee on Official Language inspected and reviewed the OL implementation
in BDL-Bhanur Unit on 12th November 2022. The committee, headed by Ramchandra Jangada, appreciated BDL’s efforts in
implementing the OL.
Inspections on OL implementation in the Bhanur Unit were conducted by the Assistant Director (OL) and Senior Translation
Officer from the DDP, MoD on 19th October 2022. The reports received acknowledged the efforts made by BDL.
Hindi Fortnight was celebrated from 14th to 27th September 2022 at the Corporate Office and its units. Various competitions
were conducted during the fortnight for the officers and employees of the Corporate Office, Kanchanbagh Unit, Bhanur Unit,
and Visakhapatnam Unit. The valedictory program of the Hindi Fortnight was conducted on 27th September 2022 under the
chairmanship of the CMD, BDL. Cash awards were presented to the competition winners, as well as to officers and employees
who made significant contributions in Hindi throughout the year
The Town Official Language Implementation Committee of PSUs (TOLIC), Hyderabad, which consists of 48 member offices,
was honored with the “Kshetriya Rajbhasha Puraskar” under Region ‘C’ for best implementation of the official language for the
years 2020-21 and 2021-22. The award, which includes the “Rajbhasha Shield,” was received by Shri P Radhakrishna, Director
(Production), BDL, on behalf of the CMD, BDL and Chairman of TOLIC (U). Shri Homnidhi Sharma, Dy. General Manager (HR-
OL) and Member Secretary of TOLIC (U), also received a certificate of merit for his outstanding contribution.

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DYNAMICS LIMITED 27
 KSHETRIYA RAJBHASHA PURASKAR
BDL is assigned with the functioning of TOLIC (U) with 48 member offices. Regular half-yearly meetings are organized in May
and October. During these meetings, the 19th issue of ‘PATHIK,’ the house journal of the committee, was released, and TOLIC
Shield/Trophy/Cup and Best Magazine awards for the year 2021-22 were presented. The meetings were chaired by the CMD of
BDL and Chairman of TOLIC (U).
Under the auspices of TOLIC (U), an orientation program on OL was organized for office heads, administrative heads, Hindi
officers, and staff members of member offices on 24th December 2022. A joint Hindi workshop for small member offices of the
Town Official Language Implementation Committee was organized on 20th January 2023. Additionally, a special online lecture
on “अनुवाद में विसर्जन और सर्जन का सिद्धांत” (Lost and found in Translation) was organized on 29th March 2023, with guest speaker
Dr. Shrinarayana Singh, a retired director.
On the occasion of the visit of the Hon’ble Raksha Mantri to BDL-Bhanur Unit on 2nd July 2022, all product literature, promotional
material, and banners were prepared and made available in bilingual form. Shri Homnidhi Sharma, DGM (HR-OL), served as the
master of ceremonies for the programme. During Republic Day, Independence Day celebrations, Vigilance Awareness Week,
Swachhata Pakhawada, and Constitution Day, the CMD of the organization addressed the audience in both Hindi and English,
and the pledge was taken in both languages.
The company’s website in Hindi is regularly updated in compliance with the directives of the Government of India. Officers and
employees of the organization participate in Inter PSU Competitions conducted by TOLIC (U) and have won six prizes.
To promote and propagate Hindi and encourage reading habits among the officers and employees, various Hindi magazines and
newspapers are regularly subscribed to, and popular Hindi books on all subjects are purchased annually, as per the directives of
the Department of Official Language (DOL).
23 VIGILANCE:
23.1 Preventive/ proactive vigilance has been the primary objective of Vigilance Department of the Company. As a part of its
proactive vigilance measure, the department has issued 25 Systemic Improvement Suggestions in the areas of e-reverse
auction, Recruitment, Departmental Promotion, Reservation, Sensitive Area Rotation, Civil works and Service Contracts,
Township Administration etc. and of which many have been implemented by the Management during the year under report.
Brief of all the Systemic Improvements have been hosted on BDL website [Link]

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

23.2 In furtherance of its preventive vigilance approach, as directed by Hon’ble CVC for institutionalization of preventive vigilance
module in PSUs, a 15 days ‘mid-career training program’ for executives spanning three weeks in the mid-management level
has been incorporated into the training calendar of the company for the year under report. A part of this, two batches of
executives (each batch consisting 40) have been trained in areas of Preventive Vigilance, Financial Management, Strategic
Management, Human Resources, Negotiation Skills, Data Analysis, Preventive Vigilance and Outbound Model Village visit
among others.
23.3 Being an extended arm of the Central Vigilance Commission (CVC), New Delhi, the department has submitted Various
reports (e.g. Monthly, Quarterly, Annual & CTE Type) to the Commission and also to Ministry of Defence and to the Board
of the Company. The Department has also issued vigilance clearances to employees in cases of Recruitment, Promotion,
Absorption, Confirmation, Foreign visits, for postings in sensitive areas etc. The department has also accorded priority in
handling the complaints as per the complaint handling policy of the CVC.
23.4 Observation of Vigilance Awareness Week is an integral part of the Vigilance department. As directed by the Central
Vigilance Commission, Vigilance Awareness Week (VAW)-2022 with the theme “भ्रष्‍टाचार मुक्‍त भारत – विकसित भारत;
Corruption-free India for a Developed Nation” was observed across units of Bharat Dynamics Limited from 31.10.2022
to 06.11.2022. The observance of VAW-2022 commenced with Director(Production) [Link] administering
‘integrity pledge for citizens’ at 11 AM on 31.10.2022 at Corporate Office. Employees of Kanchanbagh Unit, Bhanur Unit,
Visakhapatnam Unit and Ibrahimpatnam Unit participated in the ceremony through video-conference and took integrity
pledge. This was followed by reading out messages of Hon’ble President of India, Hon’ble Vice-President of India, Hon’ble
Prime Minister of India by Directors and message of CVC by CVO to the august gathering. The program was live across
units of the Company through video conference. A total of 2725 employees of BDL have taken the Integrity Pledge during
observance of vigilance awareness week.

Vigilance Awareness Week-2022 Banner

23.5 In order to create awareness on vigilance and the importance of it in day-to-day life, various competitions such as Essay
Writing, Elocution, Slogan Writing, Poster/Collage making on issues relating to Anti-corruption were conducted in online
mode for employees, spouse and children of employees during the Vigilance Awareness Week-2022.
23.6 As a part of Vigilance Awareness Week – 2022, Sensitization programs for employees on matters relating to the Role of
CVC, CVO and Vigilance, Complaint Policy of CVC, Disciplinary Proceedings procedure and procurement procedure etc.
were conducted across units of the company during the Vigilance Awareness Week-2022. To spread awareness on the
theme of “भ्रष्‍टाचार मुक्‍त भारत – विकसित भारत; Corruption-free India for a Developed Nation” and to sensitize employees
of BDL and public at large, banners on the theme were displayed at conspicuous places across units of the Company and in
public places too. To promote citizens to take CVC ‘e-integrity pledge’, a link of CVC website was hosted in the BDL website.
Short telephonic messages were sent to all employees encouraging to be a part of “Vigilance Awareness Week-2022” and
to take integrity pledge clicking the link [Link]

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 23.7 In order to spread awareness about the ill-effect of corruption on society and the importance of self-reliance & integrity in
life, a Gram Sabha was conducted on 02.11.2022 at Yadgarpally Village, Keesara Mandal, Telangana wherein 300 citizens
including farmers, workers of MGNREGA, women, school students were present. Dr. Upender Vennam, CVO administered
‘integrity pledge for citizens’ to the gathering in Telugu language and spoke about the importance of observance of Vigilance
Awareness Week. Village Sarpanch, Shri P. Raju spoke on this occasion and emphasized on the responsibility of citizens
towards nation building. Other Gram Panchayat members present in the Gram Sabha also addressed the gathering. A Skit
with anti-corruption message was organized during the event.
23.8 A Vendor Meet was organized by Corporate Commercial Dept. of BDL on 01.11.2022 at Bhanur Unit, wherein, vendors
from across India were invited to be a part of business prospects of BDL and more than 175 vendors were participated.
Shri P Radhakrishna, Director (Production) inaugurated the meet and spoke on the importance of contribution of vendors
in the success of BDL. Company’s Independent External Monitors Shri J K Khanna, IPS (Retd.) and Shri A Seshagiri Rao,
IRSSE (Retd.) participated in the meet through video-conferencing and addressed the gathering. On this occasion, CVO, Dr.
Upender Vennam administered ‘integrity pledge for citizens’ to vendors and emphasized on Multiple Vendor Development
to reduce dependency, increase competitiveness and to ensure transparency and accountability. ED (Head-Bhanur Unit),
GM (VU), GM (Head-KBU), GM (TSD & REF) were present in the meet and addressed the gathering. An online vendor
payment module was also launched by Director (Production) during the meet.
23.9 A Walkathon was organized by Bhanur Unit at Bulkapur village on 01.11.2022 to spread the messages to public on anti-
corruption. CVO, Dr. Upender Vennam and Cmde G R Pradhan (Retd.), ED (Bhanur Unit) flagged off the walkathon at
Bulkapur along with village representatives and participated in the walkathon. A Grama sabha was organized in the village
and public were apprised of the need to ensure integrity in their day-to-day life. Placards and banners with slogans on ill-
effects of corruption were displayed.

“CHETANA’’- annual vigilance newsletter released during valedictory function of VAW-2022 by Chief Guest
Shri Mahesh Bhagwat, IPS, Commissioner of Police, Rachakonda Police Commissionerate, Telangana
23.10 The observance of Vigilance Awareness Week-2022 concluded with a valedictory function organized on 07.11.2022
at Kanchanbagh Unit of the Company. Shri Mahesh Bhagwat, IPS, Commissioner of Police, Rachakonda Police
Commissionerate, Telangana graced the occasion as Chief Guest and delivered a key note address to the employees. Shri
Mahesh Bhagwat shared his experience with the audience and emphasized on how un-checked corrupt activities ruin
entire country. The program was attended by Directors, CVO and other senior executives. The dignitaries motivated the
employees to practice ethical behavior at all times and contribute towards Organization and Nation building.
24. ANTI-BRIBERY AND ANTI-CORRUPTION POLICY:
Your company has zero tolerance approach to bribery and corruption. Your company prohibits all forms of bribery and corruption
whether involving, but not limited to Government Officials or a Private Sector persons or Company and whether directly or
indirectly. The Board of Directors had approved a policy on Anti-Bribery and Anti-Corruption and the same was hosted on
website of the Company [Link]

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

25. Board of Directors:

25.1 The Board of Directors of the Company comprises Functional Directors, Government Nominee Directors and Independent
Directors (i.e Non Official Part Time Directors) who are appointed by the Government of India from time to time. Further,
the tenure and remuneration of Functional Directors including Chairman and Managing Director are decided by the
Government of India through Public Enterprises Selection Board/Search Committee. The Government communication also
indicates the detailed terms and conditions of their appointment including a provision for the applicability of the relevant
rules of the Company.
25.2 The Government Nominee Directors are not entitled to any remuneration/sitting fee. The Independent Directors (i.e. Non
Official Part Time Directors) are entitled to sitting fees for attending the Board/Committee meetings as approved by the
Board, in line with the government directives, statutory acts, rules and regulations.
25.3 Independent Directors (i.e. Non Official Part Time Directors)
The Ministry of Defence, Government of India vide its letter No. [Link]-M0001(11)/1/2018/D(BDL) dated 24.02.2023
appointed one new Independent Director viz., Shri. Jashwant Lal as Part-time Non-Official Directors w.e.f 24 February
2023 for a period of three years or until further orders whichever is the earliest.
Statement on declaration by Independent Directors:
Independent Directors have given declarations u/s 149(7) of the Companies Act, 2013 that they meet the criteria of
independence as laid down u/s 149 (6) of the said Act.
25.4 During the year, the Ministry of Defence, Department of Defence Production, Government of India, through its Office
Memorandum No.8 (32)/2019-D (Coord/DDP) dated 14.09.2022, appointed Shri. Anurag Bajpai, JS (DIP), as the Part-
Time Official Director (Government Director) on the Board of the Company, replacing Shri. Chandraker Bharti. The Board
acknowledges and appreciates the valuable contributions made by Shri. Chandraker Bharti during his tenure.
25.5 During the year, Shri. N.P Diwakar, Director (Technical), superannuated on 31 August 2022, and his term as Director on the
Board of BDL concluded upon his superannuation. The Board expresses its gratitude for the valuable contributions made
by him during his tenure. The Ministry of Defence, Department of Defence Production, Government of India, through its
Office Memorandum [Link]-M0001(11)/04/2021-D(BDL) Pt.1 dated 29.12.2022, appointed Cmde A. Madhavarao as
Director (Technical) in place of Shri. N.P. Diwakar. Cmde. A. Madhavarao assumed the position of Director (Technical) with
effect from 02 January 2023.
25.6 [Link] Mishra, Chairman & Managing Director, superannuated on 31 March 2023, and his term as Director
on the Board of BDL concluded upon his superannuation. The Ministry of Defence, Department of Defence Production,
Government of India, through its Office Memorandum No.M0001(24)/1/2022-D(BDL) dated 31.03.2023, assigned the
additional charge of CMD, BDL to Shri. P. Radhakrishna, Director (Production) w.e.f 01 April 2023 to 30 June 2023. The
Board expresses its appreciation for the valuable contributions made by Cmde. Siddharth Mishra during his tenure.
25.7 In accordance with the provisions of Section 152 of the Companies Act, Shri. N. Srinivasulu, Director (Finance), retires by
rotation at the ensuing Annual General Meeting and, being eligible, offers himself for reappointment.
25.8 Number of Meetings of Board:
During the year 2022-23, Six (6) Board Meetings were held on 26 May 2022, 12 August 2022, 26 September 2022,
11 November 2022, 07 February 2023 and 31 March 2023.
25.7 Performance Evaluation:
The provisions of Section 134(3)(p) of the Companies Act, 2013 relating to evaluation of Board of Directors do not apply
to your Company since necessary exemptions are provided to all government companies. Further, similar exemptions were
granted to your Company by Securities Exchange Board of India (SEBI) under the provisions of SEBI (Listing Obligations and
Disclosure Requirements {LODR}) Regulations, 2015 vide their letter No. SEBI/HO/CFD/DIL1/OW/P/2018/1679/1 dated
January 17, 2018.
26. Directors’ Responsibility Statement:
As per Section 134(3)(C) and 134(5) of the Companies Act, 2013 as amended, the Directors state that:
(i) In the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper
explanation relating to material departures.

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DYNAMICS LIMITED 31
 (ii) The Directors had selected such accounting policies and applied them consistently and judgments and estimates made 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 2023 and
of the profit of the Company for the year ended on that date.
(iii) Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities.
(iv) Directors have prepared the annual accounts on a going concern basis.
(v) Directors have laid down internal financial controls which are being followed by the Company and that such internal
financial controls were adequate and operating effectively and
(vi) The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
27. 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 Company’s operations in future.
28. EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS:
Material changes and commitments affecting the financial position of the company which have occurred between 31 March
2023 and date of signing of this Report are - Nil.
29. AUDIT COMMITTEE:
During the year 2022-23, Four Audit Committee meetings were held to review internal control systems and their adequacy,
including coverage of Audit functions. Details of composition, terms of reference, etc., are covered in Report on Corporate
Governance.
30. CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY DEVELOPMENT:
30.1 Pursuant to the provisions of Section 135 of the Companies Act, 2013 and The Companies (Corporate Social Responsibility)
Rules, 2014 read with various clarifications/amendments issued by Ministry of Corporate Affairs & DPE guidelines, the
Company has undertaken various activities as per the CSR Policy. The programmes/initiatives/projects are taken up in
line with the Schedule-VII of the Companies Act-2013, which are duly incorporated in CSR policy and forms the guiding
principle for all our programmes. The Board of Directors of your Company has Board Level Committee on Corporate
Social Responsibility and Sustainable Development (CSR & SD) (please refer Corporate Governance Report) in line with the
provisions of Section 135 of the Companies Act, 2013. The Committee has formulated and recommended CSR Policy to
the Board indicating the projects/activities to be undertaken by the Company as specified in Schedule VII of the Companies
Act, 2013.
30.2 Your Company has been very conscious about its responsibilities towards society. Your Company has also ventured into
backward/ under developed areas in Andhra Pradesh and Telangana to undertake Corporate Social Responsibility (CSR)
activities by sponsoring various schemes.
30.3 The core areas of focus under CSR are Health Care, Nutrition, Education & Literacy, Skill Development & Sustainable
Livelihoods, Sanitation, Safe Drinking Water etc. Your company also adopted villages in Andhra Pradesh and Telangana State
under Corporate Social Responsibility initiative and the focus is on the necessities of human life–health, water and other
conveniences.
30.4 The CSR and SD activities are monitored periodically by the Committee and a detailed annual report on CSR and SD
activities undertaken during the year 2022-23 is enclosed as Annexure-I.
30.5 During the year 2022-23, the CSR & SD obligation was ₹1212.14 lakh. Against the target, the company has incurred an
expenditure of ₹1319.32 lakh and achieved 100% CSR target amount required under the provisions of Companies Act,
2013. CSR activities being undertaken are placed on Company’s website [Link]
[Link]

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31. RISK MANAGEMENT:

The Company has a Board approved Risk Management Policy. The policy aims at elimination or reduction of risk exposures
through identification and analysis of various types of risks and facilitating timely action for taking risk mitigation measures. The
policy envisages that all programs, project reviews will highlight the progress of risk mitigation plans till the closure and signing
off the mitigation plans.
Pursuant to the Reg. 21 of SEBI (LODR) Regulations, 2015, the Company has constituted a Risk Management Committee. The
details of Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report.
32. ANNUAL RETURN:
In accordance with the provisions of the Companies Act, 2013, Annual Return of the Company for the year under report is
available on the Company’s website [Link]
33. RELATED PARTY TRANSACTIONS:
There are no materially significant related party transactions during the year under review which may have a potential conflict
with the interest of the Company at large. Thus, disclosure in Form AOC-2 is not required. Members may refer to the notes to
the accounts for details of related party transactions.
The policy for related party transaction has been uploaded on the Company’s website [Link]
files/2023-06/Policy%20on%20Related%20Party%[Link]
34. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are
given in the notes to the Financial Statement
35. INTERNAL CONTROL SYSTEMS:
Your Company had put in place all required internal controls and systems to meet the canons of financial propriety. External
audit firms are appointed to ensure their adequacy and report thereon. Detailed analysis of reports of Internal Audit Firms as well
as reports of Internal Audit Department of your Company is placed before the Audit Committee for its review and advice. The
adequacy of internal control procedures are reviewed and reported by Statutory Auditors in their Audit Report. The necessary
disclosures have been made in Notes to Accounts. Your Company being a Government Company is subject to Government Audit
also.
36. Auditors:
Statutory Auditor:
M/[Link] & Co., Chartered Accountants, Hyderabad were appointed as Statutory Auditors of the Company for the financial
Year 2022-23 by the Comptroller & Auditor General of India. The Auditors have audited the Accounts and does not contain any
qualification, reservation or adverse remarks
The Auditors’ Report on the financial statements for the financial year 2022-23 and the Comments of Comptroller and Auditor
General of India (C&AG) under Section 143 (6) of the Companies Act, 2013 are appended to the Annual Report.
Cost Auditor:
Your Company appointed M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad as Cost Auditors for the FY 2022-23
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 in respect of its manufacturing activities.
Secretarial Auditor:
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/[Link] & Associates, Practicing Company
Secretaries (PCS Registration No.5024) for the financial year 2022-23 to undertake the Secretarial Audit of the Company. The
Secretarial Audit Report is enclosed as Annexure-II.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 33
37. CEO / CFO CERTIFICATION:
As per the requirements of SEBI Listing Regulations and DPE Guidelines, the CEO/CFO certificate has been obtained and placed
before the Audit Committee and the Board.
38. Reporting of Frauds by Auditors:
During the year, neither the Statutory Auditor nor the Secretarial Auditor have reported to the Audit Committee/Board 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 needs to be mentioned in the Board’s Report.
39. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the DPE
Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report as Annexure III.
40. Corporate Governance:
40.1 Corporate Governance is about application of best management practices, compliance of laws and adherence to ethical
standards to achieve Company’s objective of enhancing stakeholders’ value and discharge of social responsibility.
40.2 The Company has a well-established, transparent and fair administrative set up to provide for professionalism and
accountability.
40.3 As per the guidelines on Corporate Governance for CPSEs issued by DPE vide its OM No. 18 (8)/2005-GM, dated 14
May 2010 and in terms of the SEBI (LODR) Regulations, 2015, Report on Corporate Governance along with Certificate on
compliance of conditions on Corporate Governance from a Practicing Company Secretary are attached to this report as
Annexure-IV.
40.4 Quarterly and Yearly compliance reports on Corporate Governance are being forwarded to Stock Exchanges and MoD in
the prescribed format. Your Company received “Excellent” rating from MoD for compliance of Corporate Governance under
DPE Guidelines for the year 2022-23.
41. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION &
REDRESSAL) ACT, 2013:
The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been notified in the
Company. In line with the Guidelines received from time to time, necessary actions have been taken to prevent Sexual Harassment
of Women at Workplace. The BDL CDA Rules applicable to Officers and the Certified Standing Orders applicable to Workmen
have the required provisions in this regard. The Internal Complaints Committees as per Section 4 of the Act have been put in
place. During the year 2022-23, your Company has not received any Sexual harassment complaints.
42. COMPLIANCE UNDER THE RIGHT TO INFORMATION ACT, 2005:
The information required to be provided to citizens under Section 4(1)(b)of Right to Information Act, 2005 is placed on Company’s
Website [Link]
Accordance%20with%20RTI%20May%[Link]. It contains general information of the Company, functions, powers and
duties of employees/officers, decisions making process, rules, regulations, manuals and records held by the Company, directory
of the Company’s Officers, pay scales of officers/ employees and procedure for seeking information and inspection of records.
The Company has nominated a Central Public Information Officer of Senior Manager Level to attend to queries and appeals.
Further, during the year 2022-23 Company received 190 applications/queries, out of which 188 applications are disposed-off
expect for 2 (Two) RTI queries which are under process. Further 18 appeals are received and disposed-off by Final Appellate
Authority.
43. VIGIL MECHANISM/ WHISTLE BLOWER POLICY:
Pursuant to the provisions of the Section 177(9) of the Companies Act, 2013 read with Rule (7) of the Companies (Meeting of
the Board & its Power) Rules, 2014 (as amended) and DPE Guidelines for CPSEs, the Board of Directors had approved the policy
on Whistleblower/Vigil Mechanism and the same was hosted on website of the Company [Link]
files/2020-01/Whistle%20blower%20Policy%20%26%20Vigil%20Mechanism_0.pdf. The policy inter-alia provides a direct
access to the Chairman of the Audit Committee.
Employees are encouraged to raise any of their concerns by way of whistle blowing and none of the employees have been denied
access to the Audit Committee.

34 BHARAT
DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

44. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT:

The Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility and Sustainability Report
(“BRSR report”) as part of the Annual Report based on market capitalization. In terms of amendment to regulation 34 (2) (f) of
LODR Regulations vide Gazette notification no. SEBI/LAD-NRO/GN/2021/22 dated May 05, 2021, SEBI has introduce new
reporting requirements on ESG parameters called the Business Responsibility and Sustainability Report (BRSR).
Your Company has prepared a comprehensive policy framework for BRSR report, after studying the SEBI (LODR) Regulations,
2015 requirements and keeping in view the business and governance environment in which BDL as a Defence PSU operates.
The Company’s BRSR report for the financial year 2022-23 is appended to the Annual Report.
45. DIVIDEND DISTRIBUTION POLICY:
In terms of SEBI (LODR) Regulations,2015 (as amended), dividend distribution policy has been adopted by your company to set
out the parameters and circumstances that will be taken into account by the Board in determining the distribution of dividend
to its shareholders and/or retaining the profit into the business. The policy is available on the BDL’s website [Link]
sites/default/files/2020-01/Dividend%20Distribution%20Policy_0.pdf
46. Acknowledgement:
46.1 Your Directors gratefully acknowledge and express their appreciation for the cooperation extended and guidance provided
by various Government Agencies, including the Ministry of Defence, DPSUs, Department of Defence Production, DRDO
Laboratories, Central Government Departments, State Governments of Telangana and Andhra Pradesh, Quality Assurance
Agencies of the Government of India, and other PSUs. Their support has been invaluable to the Company, and your
Directors are grateful for the assistance received from them on various occasions.
46.2 The Company would like to extend its sincere appreciation to the Comptroller & Auditor General of India, the Principal
Director of Commercial Audit & Ex-officio Member, Audit Board, Statutory Auditors, Bankers, and Suppliers for their
cooperation, support, and guidance. Their contributions have been instrumental in ensuring the smooth functioning and
financial integrity of the Company.
46.3 The Directors take this opportunity to express their deep appreciation for the valuable contributions and cooperation of the
employees at all levels. Their dedication, hard work, and commitment have played a crucial role in propelling the Company
to greater heights and sustaining its growth trajectory. The Directors recognize and acknowledge the employees’ efforts and
extend their gratitude for their continued support in the future.

For and on behalf of the Board

P Radhakrishna
Director (Production) &
Place : Hyderabad Chairman & Managing Director (Addl. Charge)
Date : 25 May 2023 DIN: 08437975

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 35
 Annexure - I

Annual Report on CSR Activities

1. Brief outline on CSR Policy of the Company.
BDL is concerned and conscious about its responsibilities towards society. The company has its CSR policy aligned with
provisions of The Companies Act 2013 and is spending 2% of the average net profits of the immediate three preceding financial
years towards CSR activities. BDL shall strive to fully exploit its core competence and mobilize it’s resource abilities in the
implementation of CSR activities, also to align Corporate Social Responsibility to extend possible strategies and shall select
such CSR activities which can be better monitored through in-house expertise. The company would endeavor to adopt and
integrated approach to address the community, societal and environmental concerns by taking up a range of following activities
which shall be taken up strategically in project mode in focused manner to the extent possible. The core areas of focus under
CSR are Healthcare, Nutrition, Education & Literacy, Skill Development and Sanitation etc. BDL as per DPE Guidelines, has also
ventured into Aspirational Districts / under developed areas in Telangana and Andhra Pradesh to undertake Corporate Social
Responsibility (CSR) activities. Our commitment to these CSR activities in unwavering and will continue to work towards making
a positive impact on the society.
CSR Provision for the FY 2022-23 is ₹ 1212.14 lakh. The details of the projects executed during 2022-23 are as follows:
(₹ In Lakh)

[Link]. Description Expenditure

1 Mid day meal program through Akshaya Patra Foundation Govt. School Children of TS & AP 172.33
Purchase order is placed for four oxygen Generator Plants with an estimated cost of ₹400 lakh, to be
2 installed in four Govt. Hospitals viz., Military Hospital, Secunderabad, ESIC Medical College Hospital, 94.4
Hyderabad, Chevella Hospital and Vikarabad Govt. Hospital
3 Smart Class rooms in Government schools of Vizianagaram District (Aspirational Dist.), AP 20
4 Contribution to College of Defence Management, MoD, Hyderabad 20
Establishment of Molecular Oncology Dept - Procurement of Equipment at MNJIO & Regional Cancer
5 70
Centre, Hyderabad TS
Fitment of Cochlear Implants to the Children with Hearing Impairment through ALIMCO of Telangana
6 251.25
and Andhra Pradesh State
Distribution of Aids & Appliances including Artificial Limbs & Calipers to the Persons with Disabilities
7 12.5
(PwDs) in Aspirational Districts of Telangana State
Awareness creation and supplying of Sanitary Napkins to Girl Students of Govt. Schools in Ranga Reddy
8 70
Dist., Telangana State
9 Smart Class Rooms in Vizianagaram (Aspirational Dist.), AP 100
10 Dokra Craft development Project in Asifabad (Aspirational Dist.), TS 14.4
11 Terracotta Handicraft Development Project in Asifabad (Aspirational Dist.), TS 12
12 Construction of ZP Model High school at Bhanur Village, Sangareddy Dist. TS 58.84
Distribution of Dual Desks through Central Prisons to Govt. Schools in Bhadradri Kothagudem
13 99.9
(Aspirational Dist.) & Sangareddy Dist., TS
14 Contribution to Pradhan Manttri TB Mukth Abhiyan in Jayashankar Bhupalpally & Mulugu (Aspirational Dist.) TS 34.93
15 Stipend paid to the Apprentices (i.e over and above of 2.5% minimum mandate under Apprentice Act, 1961) 250.0
16 Har Ghar Tiranga 5.36
17 Administrative Overheads 30.39
18 Military Madhavaram Village, West Godavari Dist., AP 3.02
TOTAL 1319.32

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

2. Composition of CSR Committee:

Number of meetings Number of meetings of CSR

Sl. Designation / Nature of
Name of Director of CSR Committee Committee attended during
No. Directorship
held during the year the year
1 Shri. Rajendra Singh Chairman of the Committee / 4 4
Shekhawat Independent Director
2 Shri. Sunil Chintaman Mone Member of the Committee / 4 4
Independent Director
3 Prof. (Dr) Sangamitra Mishra Member of the Committee / 4 4
Independent Director
4 Shri. Nanda Kumar Member of the Committee / 4 3
Subburaman Independent Director
5 Dr. Pawan Sthapak Member of the Committee / 4 3
Independent Director
6 Shri. P. Radhakrishna Member of the Committee / 4 4
Director (Production)
3. Provide the web-link(s) where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed
on the website of the company.
[Link]
pdf
4. Provide the executive summary along with web-link (s) of Impact assessment of CSR projects carried out in pursuance of sub-rule
(3) of rule 8, if applicable (attach the report).
(i) Impact Assessment of the CSR Projects for the FY 2018-19 completed and available on website [Link]
(ii) Impact Assessment of the CSR Projects for the FY 2019-20 not done as 55% (approx) of the CSR provision contributed
towards PMCARES.
(iii) Impact Assessment of the CSR Projects for the FY 2020-21 is in progress.
(vi) Impact Assessment of the CSR Projects for the FY 2021-22 & FY 2022-23 is yet to be assessed
5. (a) Average net profit of the company as per section 135(5) - ₹ 60894.44 Lakh
(b) Two percent of average net profit of the company as per section 135(5) - ₹ 1217.89 lakh
(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years - Nil
(d) Amount required to be set off for the financial year, if any - ₹ 5.75 lakh
(e) Total CSR obligation for the financial year ([b+c-d]). - ₹ 1212.14 lakh
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than ongoing project) - ₹ 1288.94 lakh
(b) Amount spent in Administrative Overheads - ₹ 28.19 lakh
(c) Amount spent on Impact Assessment, if applicable - ₹ 2.20 lakh
(d) Total amount spent for the Financial Year [(a+b+c+)] - ₹ 1319.32 Lakh

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BHARAT
DYNAMICS LIMITED 37
 (e) CSR amount spent or unspent for the financial year:

Amount unspent (in ₹)

Total amount transferred to unspent csr Amount transferred to any fund specified under
Total amount spent account as per sub-section(6) of section Schedule VII as per second provision to Sub-
for the fy (in ₹). 135 section (5) of Section 135
Name of the Date of
Amount (in ₹) Date of Transfer Amount (in ₹)
fund Transfer
₹ 1319.32 Lakh Nil N/A Nil Nil N/A

(f) Excess amount for set-off, if any,

[Link]. Particulars Amount (in ₹)

(i) Two percent of average net profit of the company as per sub-section (5) of section 135 1212.14 lakh
(ii) Total Amount spent for the financial year 1319.32 Lakh
(iii) Excess Amount spent for the financial year (ii)-(i) 107.18 lakh
(iv) Surplus arising out of the CSR Projects or programmes or activities of the previous Financial Nil
years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] 107.18 lakh

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

1 2 3 4 5 6 7 8
Balance Amount Transferred
Amount to a fund as specified Amount
Amount to
transferred to under Schedule VII as per remaining
Unspent Amount
Preceding Unspent CSR second provision to sub- to be
Sl. CSR Account Spent in the Deficiency,
Financial Account under section (5) of section 135, spent in
No under Sub- Financial if any
Year(s) Sub-section (6) if any succeeding
section (6) of Year (in ₹)
of Section 135 Financial
Section 135 Amount in Date of
(in ₹) Years (in ₹)
(in ₹) (₹) Transfer
1 2021-22 NIL NIL NA NA NA NA NA
2 2020-21 NIL NIL NA NA NA NA NA
3 2019-20 NIL NIL NA NA NA NA NA

38 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial
Year: Yes
If Yes, enter the number of Capital assets created / acquired
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the
Financial Year

Short particulars of
the property or asset(s) Pincode of Amount of
Sl. Date of Details of entity / Authority /
(including complete the property CSR amount
No. creation beneficiary of the registered owner
address and location of or asset (s) spent
the property)
(1) (2) (3) (4) (5) (6)
1 Oxygen Generation Plant 501503 18 June 2022 ₹ 94.4 lakh CHC, Chevella, Ranga Reddy District
(960 lpm) Telangana Health Department,
Telangana State
2 ZP Model High School 502305 22 July 2022 ₹ 58.84 lakh District Education Officer, Sanga Reddy
District, Telangana State
9. Specify the reasons(s) if the company has failed to spend two per cent of the average net profit as per sub-section (5) of Section
135: N/A

For and on behalf of the Board

P Radhakrishna Rajendra Kumar Shekhawat

Director (Production) & (Chairman CSR Committee).
Place : Hyderabad Chairman & Managing Director (Addl. Charge) DIN: 09449860
Date : 25 May 2023 DIN: 08437975

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 39
 Social Welfare Building at Vizianagaram inaugurated by Director (Finance)

Govt. School Children Enjoying Mid-Day Meal Cochlear Implantation to Hearing Impaired Child

Awareness creation and supplying of Sanitary Napkins to Girl Dual Desks Distributed to Govt. Schools at Bhadradri
Students of Govt. Schools at Ranga Reddy Dist. TS Kothagudem (Aspirational District), Telangana State

ZP High School Inaugurated by the then CMD, BDL Cmde Siddharth Mishra at
Bhanur Village, Sanga Reddy District, Telangana State

40 BHARAT
DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Annexure - II

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BHARAT
DYNAMICS LIMITED 41
42 BHARAT
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Annual Report 2022-23

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DYNAMICS LIMITED 43
44 BHARAT
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Annual Report 2022-23

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DYNAMICS LIMITED 45
46 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Annexure -III

MANAGEMENT DISCUSSION & ANALYSIS

Forward looking statements
Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the
Company’s objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations.
Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that
these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or
revise forward looking statements on the basis of any subsequent developments, information or events. Actual results may differ materially
from those expressed in the statement. Important factors that could influence the Company’s operations include government’s strategy
relating to acquisition of Defence equipment, changes in government regulations, tax laws, economic developments within the country and
such other factors globally.
1. BHARAT DYNAMICS LTD – AN OVERVIEW
Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), was incorporated on 16 July, 1970 as a Public Sector Undertaking
under Ministry of Defence, Government of India.
Over the years, BDL has evolved as one among few industries in world having state-of-the-art facilities for manufacture and
supply of Guided Missiles, Underwater Weapons, Air-borne products and allied defence equipment for Indian Armed Forces.
BDL also offers Product Life Cycle Support for all equipment supplied and also refurbishment / life extension of vintage Missiles
already available in the inventory of the Indian Armed Forces. While fulfilling its basic role as guided weapon system manufacturer,
BDL has also built-up in-house R&D capabilities primarily focused on Design & Engineering activities.
BDL is relentlessly working to contribute its part towards creation of a self-reliant India or “Atmanirbhar Bharat” in the area of
Defence. The Company is endeavouring to forge alliance with foreign companies to take the ‘Make in India’ mission further.
Thrust is being given to engage with Original Equipment Manufacturers (OEMs) for new missiles and underwater weapons with
potential Transfer of Technology. BDL has forayed into international market by offering its products to foreign countries. The
order book of Exports stands at ₹ 2586 Crore as on 01 April 2023.
1.1 Indian Defence Industry
India, the second largest armed forces in the world and the third largest military spender, has positioned itself as a key player in
the global defence industry. With the country’s defence budget accounting for 2.15% of the total GDP, the Indian government
has identified the Defence and Aerospace sector as a priority area for the ‘Atmanirbhar Bharat’ or Self-Reliant India initiative.
This initiative focuses on establishing indigenous manufacturing infrastructure supported by a robust research and development
ecosystem.
The Indian Defence industry aims to design, develop, and manufacture cutting-edge sensors, weapon systems, platforms, and
associated equipment for the military. The government has launched various initiatives to promote self-reliance in Defence
Manufacturing, with the goal of enhancing domestic production and making India a net exporter in the field. In FY 2022-23,
over ₹2.71 lakh crore worth of procurement has been approved, with 99% of it sourced from Indian industries. This substantial
increase in indigenous procurement will strengthen Indian industries and contribute to the vision of an ‘Atmanirbhar Bharat.’
A record 75% of the defence capital procurement budget (approximately ₹ one lakh crore) has been allocated for the domestic
industry in FY 2023-24, up from 68% in the previous year. This announcement was made by the Hon’ble Raksha Mantri Shri
Rajnath Singh during the Bandhan ceremony at the 14th Aero India in Bengaluru on February 15, 2023. The Bandhan ceremony
witnessed the forging of 266 partnerships, including 201 MoUs, 53 major announcements, nine product launches, and three
Transfers of Technology, collectively valued at around ₹80,000 crore.
In recent years, there has been a growing focus on enhancing defence exports, reducing imports, and achieving self-reliance
in the field. India’s defence manufacturing sector has recorded increased production, with figures reaching US$11.85 billion in
FY22 compared to US$10.9 billion in FY21. Additionally, India’s defence production stood at ₹17,885 Crore (US$2.24 billion)
in FY 2022-23 (until August 1, 2022). The Government of India has formulated a Defence export strategy to facilitate Defence

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 Public Sector Undertakings (DPSUs) and private defence players in exploring international business opportunities. India has
set a target of exporting defence equipment worth ₹35,000 crore ($5 billion) by 2025 and has witnessed significant growth in
defence exports, which increased by 334% in the last five years and reached a record ₹13,000 crore in FY 2021-22. Presently,
India exports defence equipment to over 75 countries.
In the Union Budget 2022-23, there has been a substantial increase in capital allocations for the modernisation and infrastructure
development of the Armed Forces, amounting to ₹1.52 lakh crore. This represents a 12.82% increase of ₹17,308 crore over FY
2021-22. Furthermore, the cumulative increase in the Capital Budget since 2019-20 has been ₹48,975 crore (47.37%). For FY
2023-24, the Ministry of Defence (MoD) has been allocated a total budget of ₹5.94 lakh crore, accounting for 13.18% of the total
budget (₹45.03 lakh crore). The capital outlay for modernisation and infrastructure development has been increased to ₹1.63
lakh crore. These increased allocations reflect the government’s commitment to sustainable enhancement in modernisation and
infrastructure development, aligned with the objectives of ‘Atmanirbhar Bharat’.
(Source: [Link]; Press information bureau; and other documents.)
1.2. Indigenization
The Government of India has implemented various policy initiatives under the ‘Make in India’ programme to promote indigenous
design, development, and manufacture of defence equipment in the country, aiming to reduce reliance on imports. These
initiatives include prioritizing capital item procurement from domestic sources, announcing 18 major defence platforms for
industry-led design and development, implementing ‘Positive Indigenisation Lists’ with import embargoes, simplifying industrial
licensing and FDI policies, launching the iDEX scheme for start-ups and MSMEs, reforms in off-set policy with thrust on attracting
investment & transfer of technology and establishing Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.
The Ministry of Defence (MoD) has notified four Positive Indigenisation Lists (PIL) comprising 411 major weapons platforms/
systems with import embargoes. Additionally, three Positive Indigenisation Lists have been notified for DPSUs, consisting of
2851 items (1st PIL), 107 items (2nd PIL), and 780 items (3rd PIL) of sub-systems/assemblies/components of DPSUs with import
embargoes. BDL has a share of 50 items in the 1st list, 4 items in the 2nd list, and 2 items in the 3rd list. Moreover, over 26,000
defence items have been uploaded on the SRIJAN Portal by MoD and offered to the Industry for indigenisation. As of December
2022, 7031 items have already been indigenised, contributing to both domestic and global markets. The defence imports have
reduced from 46% to 36.7% since 2018-19.
As part of Bharat Dynamics Limited’s (BDL) contribution to Atmanirbhar Bharat, the company focuses on indigenising technology
for self-reliance from the start of any contract. BDL manufactures missiles under Technology of Transfer (ToT) from DRDO and
from foreign OEMs. Through indigenisation initiatives, BDL has achieved indigenisation levels of 80% to 90% in many products
in the case of Foreign OEMs designed products, and in the case of DRDO designed products the indigenisation level is morethan
90% in most of the products. BDL continues its efforts to achieve higher levels of indigenisation for all products.
Under the ‘Make in India’ scheme, BDL has taken specific initiatives to achieve self-reliance in defence equipment production:
• Implementation of Make-II procedure: BDL has implemented the Make-II procedure, empowering the company to take up
projects for indigenisation of items regularly imported. The Integrated Material Manual has been amended to incorporate
the indigenisation of components and spares of BDL products.
• SRIJAN Portal: BDL has uploaded 1187 items on the MoD’s SRIJAN portal for indigenisation. Vendors have shown interest
in 413 items, and 36 sanction orders have been placed.
• Products developed under Make-II: BDL is designing and developing a 3rd generation indigenous Anti-Tank Guided Missile
(ATGM) as a Make-II project under the Indian IDDM category of DDP 2020.
2. REVIEW OF BDL’S BUSINESS
The company operates in an environment characterised by both increasing complexity in factors influencing national security and
continuing economic challenges in India and globally. A significant component of BDL’s outlook in this environment is to focus
on execution, improving standards and quality and predictability of the delivery of our products to the Indian Army. BDL also
continues to invest in technologies to fulfil the requirements of the Indian armed forces and also invest in its people so that the
Company has necessary technical skills to succeed without limiting its ability.

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2.1 BDL’s Products

Surface to Air Missile/ Test

ATGMs Torpedoes Launchers Counter-measures
Air to Air Missile Equipment
Akash Weapon System Milan2T Light Weight Launchers for Counter Measures Functional monitoring
Konkurs-M Torpedoes Konkurs-M Dispensing equipment for ATGMs
Medium Range SAM
INVAR & MILAN 2T Systems and & SAMs
Heavy Weight
Astra Weapon System ATGMs Underwater decoys
Torpedoes

2.2 Manufacturing facilities

The Company has three manufacturing facilities located in Hyderabad, Bhanur and Vishakhapatnam. All the manufacturing
facilities have been certified with ISO 14001:2015 Environmental Management System (EMS). All production Divisions are
certified to AS 9100D Standard for Aerospace Quality Management System. The Corporate Office located at Hyderabad is
certified with ISO 9001:2015 (Quality Management System). Electronics Labs of MILAN Division and BHANUR Unit have
been accredited for ISO / IEC 17025: 2005 (NABL) Certification in the discipline of Electro-Technical calibration of Electronic
Measuring Equipment. Material Testing Lab of Bhanur Unit has been accredited for ISO / IEC 17025: 2005 (NABL) Certification
in the field of testing.
Information Security Management System (ISMS) of BDL Kanchanbagh & Bhanur units have been re-certified with ISO/IEC
27001:2013 by the certification body M/s AQC Middle East LLC, Noida
The Company is in the process of setting up of additional manufacturing facilities at Ibrahimpatnam (near Hyderabad), Amravati
in Maharashtra and Jhansi in UP which will be used to manufacture SAMs (including new generation Missiles), VSHORADs
rockets and propellants for various ATGMs.
2.3 Order Book
Our current order book as on 01 April 2023 is about ₹20054 Crore.
2.4 Financial Performance
i) Performance of the Company in financial terms is summarized below:

₹ in Crore % of Increase/
S. No Particulars
2022-23 2021-22 (Decrease)
i) Sales/Revenue from Operations 2489 2817 (11.64)
ii) Value of Production 2508 2902 (13.58)
a) Import Material consumed 345 271 27.31
b) Indigenous Material consumed 865 992 (12.80)
Total Material Consumed 1210 1263 (4.20)
iii) Value Added 1298 1639 (20.81)
iii) Profit Before Tax 482 710 (32.11)
iv) Profit After Tax 352 500 (29.60)
v) Earnings per share# (in Rupee) 19.22 27.28 (29.55)
# EPS has been calculated based on profits excluding the other comprehensive income.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 49
 ii) Following data reflect the financial position of the Company:

₹.in Crore % of Increase/

Particulars
2022-23 2021-22 (Decrease)
Gross Block (Exl. CWIP) 1416 1451 (2.41)
Accumulated Depreciation 607 577 5.20%
Net Block 809 874 (7.44)
Working Capital (Net) 5394 2942 83.34%
Capital Employed 3155 2973 6.12%
Net Worth 3211 3031 5.94%
* Figures have been reclassified and regrouped, wherever necessary.
iii) Key Financial Ratios:
In accordance with the SEBI (LODR) Regulations, 2015 the Company is required to give details of significant changes
(change of 25% or more as compared to the immediately previous financial year) in the following key sector specific financial
ratios along with the detailed explanations there for:

FY FY Change
Particulars Explanation for change of 25% or more
2022-23 2021-22 (in %)
Debtors Turnover Ratio (times) 10.19 8.99 13 -
Inventory Turnover Ratio (times) 1.43 1.85 (23) -
Interest Coverage Ratio (times) Nil Nil Nil
Current Ratio (times) 3.45 2.14 61 Increased due to higher bank balances on
account of advances against new orders
received during the year
Debt Equity Ratio (times) Nil Nil Nil
Operating Profit Margin (%) 13.11 21.25 (38) Decreased due to lower turnover on
account of supply chain disruptions and
change in product mix
Net Profit Margin (%) 14.15 17.74 (20)
Return on Net worth (%) 11.28 17.49 (36) Decreased due to lower turnover on
account of supply chain disruptions and
change in product mix.
iv) All the applicable Accounting Standards are followed except IND-AS-108 relating to Segment reporting keeping in view
of the nature of business and the sensitive nature of the disclosure. Further, the Ministry of Corporate Affairs vide their
Notification No. SO-802(E) dated 23.02.2018, have exempted Companies engaged in defence production from the
applicability of said IND-AS-108. However, such non-disclosure does not have any financial effect on the accounts of the
Company.
2.5 Company Objectives
• To become self-reliant and competitive in Guided Missiles and Underwater Guided Weapon Technology and Production.
• To maximize utilization of existing production capacities.
• To become a prime competitor in the world market and export products to friendly countries.

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DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

2.6 Opportunities & Threats

Opportunities
• BDL’s multiple years of expertise in manufacturing various defence equipment coupled with its advanced facilities enable
the company to expand its market in India and abroad.
• BDL has an experienced senior management and staff having vast experience in defence equipment manufacturing.
• Increased thrust on defence indigenisation under the “Make in India” policy has thrown up more opportunities for BDL.
• BDL has a strong supply chain comprising of technically qualified vendors and suppliers to ensure timely delivery of
materials.
• BDL’s primary customer is Ministry of Defence, Government of India (GoI). The GoI has been allocating increased budget
for acquiring defence equipment.
• The opening up of export market and ’ease of doing business’ have facilitated the Company to execute export orders
successfully in the recent times and receive more enquiries from other countries.
Threats
• Slowdown in the economic activities and lower defence budget by GoI could adversely impact BDL’s business.
• Higher dependency on single customer i.e. Ministry of Defence (MoD)
• Cancellation of orders can weaken the order book and future revenue.
• Opening up of the Defence sector.
2.7 Key Strategies
Key strategies of BDL are aimed at enhancing the company’s market position by expanding capabilities, capitalising on
opportunities in domestic and international markets, and enhance the company’s competitive advantage focusing more on
indigenisation.
To achieve our strategic goals, the Company would focus on the following:
2.7.1 Expanding Infrastructure: The Company would continue to invest in infrastructure. The upcoming manufacturing
facilities at Ibrahimpatnam, Jhansi & Amravati will enable the company to cater to the growing demand of its customers.
These manufacturing facilities shall be utilised to manufacture SAMs including a new generation of SAMs, VSHORAD
missiles respectively. BDL established Seeker Facility Centre, Warheads Production Facility, Surface Mount Technology
and High Performance Computing Facility at its Hyderabad unit. BDL also established state of the art Environmental Test
facility at Vizag unit.
2.7.2 Automation: BDL has been constantly upgrading its manufacturing technologies and processes to state-of-the-art
including industry 4.0, Robotics operated workshops, latest Surface Mounted Devices assembly lines and maintains
highest quality standards in its products by adopting to best QA practices like AS 9100, Zero defect, etc. The pursuit
results into reduction in production cost, benchmarking of productivity norms and modernization of management system
and less dependence on imported technology. The Company intends to automate its production systems where feasible
to increase the productivity.
2.7.3 Focus on Research & Development: The Company believes that the recent changes to the government policies allowing
private sector companies to participate in defence contracts will provide significant competition. In order to address
these challenges, BDL intend to increase its R&D activities to develop innovative products to its customers. BDL’s
R&D expenses have also grown up significantly over the past few years. The Company believe that development of
new products will enable it to diversify its offerings and mitigate product dependencies. In this direction, BDL, adding to
its existing range of products, has launched three new products during Bandhan Ceremony at DefExpo-2022. Further
during the Aero India – 2023 at Bengaluru another three new products were launched
The Company has also established the missile development group with the objective to design and develop missiles. BDL
is striving to develop Artificial Intelligence based products. Thrust is also being given to efforts towards Innovation of in-
house developed products. Synergy is being maintained between the industry and academia to sustain balance between
experience and knowledge industry.

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BHARAT
DYNAMICS LIMITED 51
 2.7.4 Improving Processes: The Company also intends to carry out process improvements, with the aim of improve our
productivity and efficiency of its operations and thereby lower costs.
2.7.5 New Generation Weapons: BDL intends to leverage its experience to develop weapons such as new generation SAMs,
ATGMs, Air to Air Missile System, heavyweight torpedoes and Drone Delivered Bombs which will enable the Company
to further increase its revenues. BDL is also the joint development partner-cum production agency with the DRDO for
the next generation of ATGMs, Air to Air Missile and SAMs. BDL has also entered into several MoUs and non-disclosure
agreements with various companies for developing new products and transfer of technologies.
2.7.6 Exports: BDL primarily caters to the requirements of the Indian armed forces. With encouragement from Government of
India, BDL is actively exploring export markets. Further, with the Cabinet Committee on Security (CCS) clearing regarding
clearance of Akash Weapon System for Export to nine countries, BDL is geared up to take up the export orders. BDL has
already received export orders from few friendly countries and the export order book position is ₹2586 Crore as on 1
April 2023. BDL is therefore set to expand its customer base in the international market. BDL has adequate production
facilities to cater to the domestic as well as export demand for its products. BDL is consistently pursing with potential
overseas customers for export of its products.
3. RISKS AND CONCERNS:
Various risks identified with mitigation plans includes risks related to industry, increased market competition, time to market,
decline or recession in market segments and product and product inputs prices, cost control and change demand risks. Also risks
related to environment, health and safety, IT, R&D, intellectual property and new technical demands such as digitalization/smart
industry are high on the agenda and proactively mitigated, managed with identified improvement activities and followed up on
regularly.
3.1 Business Risk: The company primarily dependent on a single customer, the Indian armed forces through the Ministry of
Defence, Government of India (MoD). A decline or reprioritization of the Indian defence budget, the reduction in their
orders, termination of contracts or failure to succeed in tendering projects and deviations in the short term and long term
policies of the MoD or the Indian armed forces in the future will have a material adverse impact on our business, financial
condition, and results of operations, growth prospects and cash flows. BDL also operates in evolving markets where a level
playing opportunity is given to private sector which makes it difficult to evaluate its business and future prospects.
Having rich expertise in this business and a well-established infrastructure, Company has ability to handle adverse situations
and also geared up to face competition from private sector. Further in order to expand the customer base, BDL is actively
exploring export markets with the encouragement from the Government of India.
3.2 Policy Risk: The company is subject to a number of procurement rules and regulations of the MoD, Government regulations
and other rules and regulations. The Company’s business could be adversely affected in case of any sudden and unforeseen
changes in the applicable rules. Restrictions on current and future export of the products and other regulations could
adversely affect BDL’s business, results of operations and financial conditions
Company is complying with all rules and regulations as per the policies of Government of India and is also taking necessary
precautions in advance where possible in anticipation of any changes in the rules.
3.3 Operational & Labour Risk: The company’s operations are based out of three units in Telangana and Andhra Pradesh. The
loss of, or shutdown of, BDL’s operations at any of its units in Telangana and Andhra Pradesh will have a material adverse
effect on Company’s business, financial condition and results of operations. Some of BDL’s workforce is represented by
labour unions so the Company’s business could be harmed in the event of a prolonged stoppage of work
The Company always continues to maintain cordial relations with all the employees and as such does not foresee material
adverse effects in this regard.
3.4 Supplier/Service Provider Risk: Company is dependent on multiple key Original Equipment Manufacturers (“OEM”) for
subassemblies / components, single source suppliers and sub-contractors. Any failure on the performance of any of them
could have a material impact on Company’s operations
BDL is continuously striving to expand its vendor base and sufficiently safeguarded with liquated damage clause in case of
any failure on the performance. BDL is also developing multiple vendors where single source suppliers are currently existing
across its programmes to reduce its dependence and continuity in the programme.

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DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

3.5 Technology Risk: BDL manufactures products that incorporate advanced technologies. The introduction of new products
and technologies involves risks and the Company may not realize the degree or timings of benefits initially anticipated.
The Company has further activated its own Research & Development department and started increasing its investment in
R&D to encounter technology risks. In addition to this, the Company is also concurrently works with DRDO in development
of several projects.
4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The company has implemented comprehensive internal controls and systems that are appropriate for its size and the nature of
its business, in order to uphold financial propriety. It has established documented policies and procedures for various functions
including Purchase, Sub-contract, Works contract, Accounting, HR, IT, and Security, as well as Sub-delegation of Powers. These
policies and procedures are regularly reviewed and updated to align with the evolving business environment.
To ensure the effectiveness of internal controls, the company maintains an in-house Internal Audit Department comprising
qualified professionals. The Internal Audit Department is responsible for monitoring and assessing the adequacy and effectiveness
of the organization’s risk management, control, and governance processes. The scope of the Internal Auditor’s work is approved
by the Audit Committee of the Board. Additionally, external audit firms are appointed to provide independent assurance and to
report on the company’s financial statements. The reports from both the Internal Audit Department and the external audit firms
are carefully analysed and reviewed by the Audit Committee for their recommendations and guidance.
The company remains committed to adopting global best practices in its processes and controls, aiming to achieve the highest
level of Corporate Governance. Continuous efforts are made to enhance internal controls and align them with international
standards, ensuring transparency, accountability, and effective risk management.
5. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF
PEOPLE EMPLOYED
5.1 The manpower strength of the Company as on 31st March 2023 is as under:

Particulars Non-Executives Executives Temporary Total

Male 1556 704 7 2267
Female 186 103 4 293
Total 1742 807 11 2560
Previous Year 1838 824 12 2674
During the year, the Company conducted various training programs for both Executives and Non-Executives, totalling
approximately 1419 participants and 6063 training Mandays. These programs aimed to provide knowledge-based,
development-oriented, and need-based training to meet the present and future requirements of the Company. The training
sessions were conducted in-house as well as at external agencies’ premises.
In addition to regular training programs, the Company organized special activities and training programs, including:
a) Mid-Career Development Programme (MCDP): A two-week MCDP with the theme “Abhyudaya” was launched
on 26.10.2021. This program targeted mid-level executives, specifically Managers, Senior Managers, and Deputy
General Managers, who had completed 15 years of service in the Company and had more than a year of remaining
service. The MCDP focused on capability building, managerial excellence, workplace ethics, and the transition from
an operational role to a managerial role. The programme also incorporated a module on Preventive Vigilance in line
with CVC guidelines. The Preventive Vigilance sessions aimed to brainstorm and ideate on ethical dilemmas, conflict
of interest, reducing discretion, technology as an enabler, e-governance, and transparency. Group presentations were
made before an Expert Panel, which provided feedback to the groups. A total of 81 mid-level executives were trained
in two batches during FY 22-23.
b) In-house Workshop on International Day of Disabled Persons: A one-day workshop with the theme “UDAAN –
Unleashing the power within” was organized on 02.12.2022 for all Persons with Benchmark Disabilities (PwBDs)
of BDL. The workshop featured guest speakers who were specially-abled achievers in their respective fields. The
workshop aimed to motivate and inspire PwBDs to excel in their duties.

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DYNAMICS LIMITED 53
 c) Online Training Programme on Workplace Communication Skills: A 40-hour online training programme on workplace
communication skills was initiated on November 01, 2022, specifically for Executives in Grade II to IV who had more
than 10 years of remaining service. The training programme was conducted in collaboration with “The Hindu Group”
as the knowledge partner. Each participant was provided with a user license and login ID/password, which remained
valid for 90 days. A total of 286 Executives in Grade II to IV benefited from this training initiative.
These initiatives and special training programmes aimed to enhance the knowledge, skills, and capabilities of employees,
enabling them to perform their roles effectively and contribute to the Company’s success.
5.2 Industrial Relations
The Company places great importance on maintaining positive working relations between management and trade unions,
striving to create a congenial environment within the organization. In line with this commitment, the Central Labour
Department conducted a Verification of membership of Trade Union through Secret Ballot Elections during the year. As
a result, Bharat Dynamics Employees Trade Union Congress (BDETUC) was awarded recognition for a period of 2 years
starting from 24.06.2022.
The management, in collaboration with the recognized trade union, establishes and maintains effective procedures for
negotiation, consultation, and communication regarding the terms and conditions of employment. These procedures aim to
ensure the speedy settlement of disputes and foster a harmonious work environment. The recognized trade union acts as
the representative of the employees in consultations and negotiations with the management, specifically in matters related
to industrial relations and employment.
Through these collaborative efforts, the Company strives to create a framework for open dialogue, mutual understanding,
and the resolution of issues in a fair and transparent manner. By promoting strong working relations with the trade unions,
the Company aims to foster a conducive and productive work atmosphere for its employees.
6. ENVIRONMENTAL MEASURES:
The company is committed to contributing to a clean and green environment by integrating best practices that promote
sustainability and environmental responsibility. A systematic approach is followed, focusing on implementing cleaner technologies
and adopting the principles of recycle, reuse, and reduce.
To ensure environmental protection, the company operates effluent treatment plants and sewage treatment plants. These
facilities play a vital role in treating and managing wastewater and sewage generated by the company’s operations. Additionally,
the company actively engages in various environmental conservation activities such as water conservation, tree plantation,
proper disposal of hazardous waste and metal scrap, and landscaping. These initiatives contribute to preserving natural resources
and reducing the environmental impact of the company’s activities.
The company emphasizes the efficient utilization of resources by utilizing treated effluent water and domestic water in its
operations. This approach helps in conserving water and reducing the strain on freshwater sources. Regular assessments of
pollution levels and environmental performance are conducted through ISO 14001 core team meetings, internal audits, and
management review meetings. These activities ensure ongoing monitoring and improvement of the company’s Environmental
Management System.
Furthermore, annual surveillance audits are conducted at all three units of the company to evaluate the effectiveness of the
Environmental Management System. This systematic review process helps identify areas for improvement and ensures compliance
with environmental regulations and standards.
Through these concerted efforts, the company aims to minimize its environmental footprint, promote sustainable practices, and
contribute to a cleaner and greener environment for the benefit of present and future generations.
7. FOREIGN EXCHANGE CONSERVATION
The Company is striving constantly to conserve foreign exchange by reducing import of components and subsystems from OEMs
by increasing indigenous content in the assembly of final products.

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

8. FUTURE OUTLOOK
BDL is experiencing significant growth, as evidenced by the impressive order book position of ₹20054 Crore as on 01 April
2023. In the coming years, the order book position is expected to grow further, as several orders are under various stages of
finalization. The thrust on exports continues to remain an area of focus for the Company. Efforts are being made to convert leads
received from friendly foreign countries into firm orders. It is expected that the continuous efforts of BDL in realising new orders
will see the company record additional order of ₹ 25000 crore in next 2 to 3 years.
The Government of India’s emphasis on Atmanirbharta (self-reliance) has significantly boosted the company’s efforts towards
achieving self-sufficiency. In the current fiscal year, BDL has taken several steps in this direction. The establishment of a Warhead
Manufacturing facility and a Seeker manufacturing facility at Units positions BDL as a comprehensive provider of missiles and
their subsystems
Furthermore, the company is actively pursuing indigenization efforts to reduce reliance on foreign sources for critical items. The
construction work for the upcoming Unit at Jhansi in the UP-Defence Corridor is progressing rapidly. Once operational, this unit
will manufacture 122 mm GRAD Rockets and propellants for various types of next-generation ATGMs.
BDL is also prepared to manufacture state-of-the-art VSHORADS (Very Short Range Air Defence System) and Laser Beam Riding
Missiles under a Transfer of Technology (ToT) agreement with M/s Thales, UK, as part of the ‘Make in India’ program.
The company has signed Memorandums of Understanding (MoUs) with several foreign Original Equipment Manufacturers
(OEMs), which will usher new opportunities for growth and bring new technologies into the country. Some notable companies
include MBDA, France M/s Dassault Aviation Pvt Ltd, France M/s Thales Belgium and Barij Dynamics LLC (“Al Tariq”), Abu Dhabi,
United Arab Emirates for potential projects of Al Tariq PGM Kits in India. Additionally, BDL has entered into an agreement with
M/s Bultexpro Ltd, Bulgaria for the production of 122 mm GRAD BM ER and NON ER rockets in India.
BDL is actively collaborating with DRDO for various technology transfer programs and has signed a Licensing Agreement for
Transfer of Technology (LAToT) with DRDO for the manufacturing of Ceramic Radomes.
In terms of quality assurance, BDL aims to obtain Green Channel certification from customer inspection authorities for its
programs in a phased manner. The company has already received certification for one of its products and will work towards
obtaining similar certifications for other products across the company.
With a strong order book, growing demand in the international market, and the assimilation of new technologies, BDL is poised
to become a global leader in missile and weapon system manufacturing in the years ahead.

For and on behalf of the Board

P Radhakrishna
Director (Production) &
Place : Hyderabad Chairman & Managing Director (Addl. Charge)
Date : 25 May 2023 DIN: 08437975

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BHARAT
DYNAMICS LIMITED 55
 Annexure -IV

REPORT ON CORPORATE GOVERNANCE

1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE:

Philosophy of the Company in respect of Corporate Governance is to ensure transparency in all its operations, make appropriate
disclosures, comply with the laws, maintain ethical standards and take care of the interest of all the stakeholders. In keeping with
its professional approach, the Company is implementing the precepts of Corporate Governance in letter and spirit.
In keeping with its professional approach, the Company is implementing the precepts of Corporate Governance in letter and
spirit.
The Company’s activities are monitored by several external agencies like Statutory Auditors, Comptroller and Auditor General of
India, Central Vigilance Commission, Ministry of Defence (Department of Defence Production), etc.
Your Company is in compliance with the requirements of the Corporate Governance standards as stipulated under SEBI (Listing
obligations and disclosure requirements) Regulations, 2015 (as amended) (hereinafter referred to as ‘Listing Regulations’) and the
Department of Public Enterprises Guidelines on Corporate Governance for Central Public Sector Enterprises-2010 (hereinafter
referred to as ‘DPE Guidelines’).
2. BOARD OF DIRECTORS:
a) Composition and Category of Directors:
In terms of the Companies Act, 2013, your Company is a ‘Government Company’ as 74.93% of the total paid up capital is
being held by President of India as on 31 March 2023.
The Board of Directors headed by the Executive Chairman and Managing Director (CMD) is the apex body which oversees
the functioning of the Company. The Board provides long-term vision and strategic thinking in order to improve the quality
of governance
As on 31 March 2023, the Board of Directors of the Company consists of four Whole Time Directors including Chairman
and Managing Director, two Part-time Official Directors (Government Nominee Directors) and Six Part-time Non-Official
Directors (Independent Directors).
Your Company being a Government Company, the appointment/tenure of all Directors is done by the President of India,
through the Ministry of Defence, Govt of India. Directors are not inter-se related to each other.
b) Details of the Members of the Board during the year are as follows:

A) Functional/Whole-Time Directors (Executive) Designation

1) Cmde. Siddharth Mishra (Retd.) Chairman & Managing Director
2) Shri. [Link] * Director (Technical)
3) Cmde. A. Madhavarao(Retd.) $ Director (Technical)
4) Shri. P. Radha Krishna Director (Production)
5) Shri. [Link] Director (Finance) & CFO
B) Part-Time Official Directors (Non-Executive-Non independent)
1) Shri. Chandraker Bharti IAS, JS ( Aero) # Government Nominee Director
2) Shri. Anurag Bajpai, JS (DIP) # Government Nominee Director
3) Dr. BHVS Narayana Murthy, DG (MSS) & DS Government Nominee Director

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C) Part-Time Non-Official Directors (Non-Executive-Independent)

1) Shri. Sunil Chintaman Mone Independent Director
2) Shri. Nandakumar Subburaman Independent Director
3) Dr. Pawan Sthapak Independent Director
4) Prof. (Dr.) Sanghamitra Mishra Independent Director
5) Shri Rajendra Singh Shekhawat Independent Director
6) Shri Jashwant Lal ^ Independent Director
* Shri. [Link] was superannuated on 31 August 2022.
$ Cmde A Madhavarao vide MoD, Office Memorandum No. DDP-M0001(11)/04/2021-D(BDL) Pt.1 dated 29.12.2022
took charge as Director (Technical) with effect from 02nd January 2023.
# Ministry of Defence, Department of Defence Production, Government of India vide its Office Memorandum No. 8
(32)/2019-D (Coord/DDP) dated 14.09.2022 has appointed Shri Anurag Bajpai, JS (DIP) in place of Shri. Chandraker
Bharti IAS, JS (Aero) w.e.f 14 September 2022.
^ Appointed as Independent Director vide Ministry of Defence letter No. DDP- M0001(11)/1/2018/D(BDL) dated
24/02/2023 with effect from 24 February 2023.
c) The details of Board composition and their attendance at Board Meetings during the year and last AGM are provided
hereunder
During the year 2022-23, six (6) Board Meetings were held and the maximum interval between any two meetings was
complied with in terms of SEBI Regulations and Companies Act. The Board Meetings were held on 26 May 2022, 12 August
2022, 26 September 2022, 11 November 2022, 07 February 2023 and 31 March 2023. Required information is made
available to the Board for its information/decision making. Details of attendance of the Directors at the Board Meetings,
Annual General Meeting and the number of other Directorship/Committee Membership held by them during 2022-23 etc.,
are furnished as follows:

No. of Committee
Name of the Listed entities where
Board Meetings membership across
Directors are on Board
Attendance No. of all companies(3)
No. of Board At last AGM other
Name of Directors
Meetings held No. of held on director-
Name of the Category of As As
during respective meetings 26 Sep 2022 ships held
(2)

Listed Company Directorship Chairman Member

tenure of attended
Directors

Functional/Whole-Time Directors (Executive)

Cmde. Siddharth Mishra 6 6 Yes Nil Bharat Executive Director 0 0
(Retd.),CMD Dynamics Ltd & Chairman
Shri. N.P. Diwakar 2 2 NA Nil Bharat Executive Director 0 0
Director (Technical) Dynamics Ltd
(Ceased w.e.f 31 Aug
2022)
Cmde. A. 2 2 NA Nil Bharat Executive Director 0 0
Madhavarao(Retd.) Dynamics Ltd
Director (Technical)
(Appointed w.e.f 02 Jan
2023)
[Link] 6 6 Yes Nil Bharat Executive Director 0 0
Director (Production) Dynamics Ltd
Shri. [Link] 6 6 Yes Nil Bharat Executive Director 0 1
Director (Finance) & CFO Dynamics Ltd & CFO

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BHARAT
DYNAMICS LIMITED 57
 No. of Committee
Name of the Listed entities where
Board Meetings membership across
Directors are on Board
Attendance No. of all companies(3)
No. of Board At last AGM other
Name of Directors
Meetings held No. of held on director-
Name of the Category of As As
during respective meetings 26 Sep 2022 ships held
(2)

Listed Company Directorship Chairman Member

tenure of attended
Directors

Part-Time Official (Government) Directors (Non-Executive-Non independent)

Shri. Chandraker Bharti 2 2 NA 1 Bharat Non-Executive 0 0

(Ceased w.e.f 14 Sep Dynamics Ltd Non Independent
2022) Director
Hindustan Non-Executive
Aeronautics Non Independent
Ltd Director
Shri Anurag Bajpai 4 4 No 1 Bharat Non-Executive 0 0
(Appointed w.e.f 14 Sep Dynamics Ltd Non Independent
2022) Director
Mazagon Dock Non-Executive
Shipbuilders Non Independent
Limited Director
Dr. BHVS Narayana 6 5 No Nil Bharat Non-Executive 0 0
Murthy Dynamics Ltd Non Independent
Director

Part-time Non-Official Director (Non-Executive-Independent)

Shri Sunil Chintaman 6 6 Yes Nil Bharat Non-Executive 1 1

Mone Dynamics Ltd Independent
Director
Prof. (Dr.) Sanghamitra 6 6 Yes Nil Bharat Non-Executive 0 2
Mishra Dynamics Ltd Independent
Director
Shri Rajendra Singh 6 6 Yes Nil Bharat Non-Executive 0 2
Shekhawat Dynamics Ltd Independent
Director
Shri Nandakumar 6 5 Yes 2 Bharat Non-Executive 1 1
Subburaman Dynamics Ltd Independent
Director
PVP Ventures Non-Executive
Limited Independent
Director
Picture house Non-Executive
Media Ltd Independent
Director
Dr. Pawan Sthapak 6 5 Yes Nil Bharat Non-Executive 0 2
Dynamics Ltd Independent
Director
Shri Jashwant Lal 1 1 NA Nil Bharat Non-Executive 0 0
(Appointed w.e.f 24 Feb Dynamics Ltd Independent
2023) Director

Note:
(1) None of the Directors of the Company/Key Managerial Personnel had any pecuniary relationship with the Company during the
year. None of the Directors are related to each other and there are no inter-se relationships between the directors.
(2) Directorship in other Companies excludes directorships in private companies, foreign companies and companies under Section
8 of the Companies Act, 2013.

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(3) Pursuant to Regulation 26 of SEBI (LODR) Regulations 2015, the Chairmanship/Membership of Audit Committee and Stakeholders’
relationship Committee are considered for the purpose of number of other Committees memberships across all Companies. No
Director is a member in more than ten Committees or Chairman of more than five Committee across all companies in which he/
she is a Director. None of the Directors of the Company serves as Director in more than seven listed Companies and none of the
Independent Directors of the Company serves as an Independent Director in more than seven listed Companies. None of the
Whole Time Directors/Managing Director of the Company serves as Independent Director in more than three listed Companies.
(4) [Link], Independent Director holds 65 shares of BDL. No other Director of the Company holds any shares and/or
convertible instruments in the Company.
(5) The Company has received declarations on criteria of independence as prescribed in Section 149 (6) of the Companies Act
2013 and Regulation 16(1)(b) of the Listing Regulations from the Independent Directors of the Company as on March 31 2023
and based on the declarations received from the Independent Directors, the Board of Directors confirms that the Independent
Directors fulfill the criteria of Independence specified in SEBI (LODR) regulations and are independent of the management and
no Independent Director resigned before expiry of his/her tenure.

d) Board Skills/Expertise/Competence:
BDL being a Central Government Public Sector Enterprise, the appointment, competence, tenure and remuneration
of Directors are decided by the Government of India. The skills/expertise/competencies as required in the context of
business(es) & sector(s) pertaining to the Company are identified by the Government of India and accordingly selection of
Directors on the Board of the Company is made by the Government as per its own process. The desirable qualification and
experience of the incumbents are as per the requirement of functional areas i.e. Finance, Operations, Technical, Human
Resource and Marketing. At the time of recruitment of the Functional Directors, job description, desirable qualification
& experience of candidates are sent to the Public Enterprise Selection Board through the administrative Ministry for
announcement of vacancy and recruitment of candidates.
As such all the Directors have adequate skills/expertise/competencies as per the context of its business(es) and sector(s) for
it to function effectively.
e) Review of Compliance of Laws:
The Company has proper systems to enable the Board to periodically review compliance reports of all laws applicable to
the Company, as prepared by the Company as well as steps taken by the Company to rectify instances of non-compliances.
The Board reviewed the compliance reports relating to various laws applicable to the Company for the year 2022-23. There
was no significant or material order passed during the year by any regulator or court or tribunal impacting the going concern
status and Company’s operations in future.
f) Familiarization/Training of Board Members:
At the time of induction of an Independent Director(s), a welcome letter is addressed to Director(s) along with details
of duties and responsibilities required to be performed as a Director in addition to the compliances required from him
under the Companies Act, 2013, the Listing Regulations and other applicable Regulations. The Management of the
Company familiarizes the newly appointed Director(s) about the Company, its operations, various policies and processes
of the Company, various divisions of the Company and their role and responsibilities, the governance and internal control
processes and other relevant important information concerning the Company. Directors are also regularly encouraged
and sponsored for attending important training programmes relating to Board related practices and orientation
programmes etc. conducted by various institutes of repute. The details of Familiarization programmes imparted to the
Independent Directors during the year 2022-23 are placed in the website of the Company and can be accessed at
[Link]

g) Certificate from Company Secretary in Practice

M/s. Puttaparthi Jagannatham & Co., Practicing Company Secretaries, has issued a certificate as required under the Listing
Regulations confirming that none of the Directors on the Board of the Company has been debarred or disqualified from
being appointed or continuing as director of the Companies by the SEBI/Ministry of Corporate Affairs or any such Statutory
Authority as on 31 March 2023.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 59
3. MANDATORY COMMITTEES OF THE BOARD:
A) AUDIT COMMITTEE:
The composition of the Audit Committee is in line with Section 177 of Companies Act 2013 (the Act), Regulation 18 of the
Listing Regulations, and DPE Guidelines.
During the year, four (4) meetings of the Audit Committee were held on 26 May 2022,12 August 2022,10 November
2022 and 06 February 2023. The composition of the Committee during the year 2022-23 and the details of attendance of
Members for the said meeting(s) are as follows:

No. of Meetings held No. of Meetings

S. No Name of the Member Category of Directors
during their tenure Attended
1 Shri. Sunil Chintaman Mone, Chairperson Non-Executive Independent Director 4 4
2 Prof. (Dr.) Sanghamitra Mishra, Member Non-Executive Independent Director 4 4
3 Shri. Rajendra Singh Shekhawat, Member Non-Executive Independent Director 4 4
4 Shri. Nandakumar Subburaman, Member Non-Executive Independent Director 4 4
5 Dr. Pawan Sthapak, Member Non-Executive Independent Director 4 3
The Company Secretary acts as the Secretary of the Committee

Functional Directors (other than CMD) are invited as Permanent Special Invitees and representatives of Statutory
Auditor and external Chartered Accountant Firms doing Internal Audit Work will attend the meeting on invitation. All the
recommendations of the Audit Committee have been accepted by the Board of Directors. The Chairperson of the Audit
Committee attended the 52nd Annual General Meeting of the Company.
Terms of Reference:
The Audit Committee complies with the terms of reference as enumerated under the applicable provisions under the
Companies Act, 2013, Listing Regulations, DPE Guidelines as amended from time to time. Some of the important functions
performed by the Audit Committee are as follows:
• oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that the
financial statement is correct, sufficient and credible;
• recommendation to the Board for fixation of remuneration to the auditors;
• approval of payment to statutory auditors for any other services rendered by the statutory auditors;
• reviewing, with the management, the annual financial statements and auditors’ report thereon before submission to
the Board for approval, with particular reference as stated in Schedule II Part C of SEBI (LODR) Regulations 2015:
• reviewing, with the management, the quarterly financial statements before submission to the board for approval;
• reviewing and monitoring the auditor’s independence and performance, and effectiveness of audit process;
• approval or any subsequently modification of transactions of the Company with related parties;
• scrutiny of inter-corporate loans and investments;
• valuation of undertakings or assets of the Company wherever it is necessary;
• reviewing with the management, the performance of the Statutory Auditors and Internal Auditors, adequacy of the
internal control systems
• evaluation of internal financial controls and risk management systems
• appointment and removal of Internal Auditors and determining the scope of Internal Audit in consultation with the
internal auditors
• reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department,
staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal
audit;
• discussion with internal auditors and/or auditors of any significant findings and follow up thereon;
• reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;
• review observations of statutory, internal and government auditors and provide recommendations based on the same;
• to review the follow up action on the audit observations of the C&AG audit

60 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

• discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-
audit discussion to ascertain any area of concern;
• to look into the reasons for substantial defaults in the payment of the depositors, debenture holders, shareholders (in
case of non-payment of declared dividend and creditors).
• to review the functioning of the whistle blower mechanism
• to review the follow up action taken on the recommendations of the Committee on Public Undertakings (COPU) of
the Parliament.
• to review cases of procurement from a single source.
• to review the utilization of loans and/or advances from/investment by the holding Company in the subsidiary exceeding
rupees 100 Crore or 10% of the asset size of the Subsidiary, whichever is lower including existing loans/advances/
investments.
B) NOMINATION AND REMUNERATION COMMITTEE:
The composition of the Nomination and Remuneration Committee is in line with Section 178(1) of the Companies Act,
2013 and Reg.19 of the Listing Regulations and DPE Guidelines.
During the year, one (1) meeting of the Nomination and Remuneration Committee was held on 10 November 2022. The
composition of the Committee during the year 2022-23 and the details of attendance of Members for the said meeting(s)
are as follows:

No. of Meetings held No. of Meetings

S. No Name of the Member Category of Directors
during their tenure Attended
1 Prof. (Dr.) Sanghamitra Mishra Non-Executive 1 1
Chairperson Independent Director
2 Shri. Sunil Chintaman Mone Non-Executive 1 1
Member Independent Director
3 Shri. Rajendra Singh Shekhawat Non-Executive 1 1
Member Independent Director
4 Shri. Nandakumar Subburaman Non-Executive 1 1
Member Independent Director
5 Dr. Pawan Sthapak Non-Executive 1 1
Member Independent Director
The Company Secretary acts as the Secretary of the Committee.

Terms of reference:
The terms of reference of the Committee is as follows:
• To identify persons who may be appointed in senior management (i.e., Executive Director) in accordance with the
criteria laid down, recommend to the Board their appointment and removal.
• To recommend to the Board a policy, relating to the remuneration for the key managerial personnel and other
employees.
• To recommend all remuneration payable to Senior Management (i.e. Members of Management one level below CEO/
MD/WTD/Manager Incl. CEO/Manager, if not part of Board of Directors)
• Decide on the annual bonus/ performance pay/variable pay pool and policy for its distribution across the executives.
• Formulation and modification of schemes for providing perks and allowances for Executives.
• Any new scheme of compensation to Executives and Non-Executives as the case may be
• Exercising such other roles as may be assigned to it by the provisions of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 and any other law and their amendments from
time to time

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 61
 Remuneration Policy /Details of Remuneration to all Directors:
a. BDL being a Central Government Public Sector Enterprise, the appointment, tenure and remuneration of Directors
are decided by the Government of India. The Government letter appointing the Chairman & Managing Director and
other functional directors indicates the detailed terms and conditions of their appointment, including the period of
appointment, basic pay, scale of pay, dearness allowance etc., and it also indicates that in respect of other terms and
conditions not covered in the letter, the relevant rules of the Company shall apply.
b. Chairman and Managing Director and other Functional Directors are appointed by the Government initially for a
period of 5 years from the date of appointment or upto the date of superannuation of the individual or until further
orders of the Government, whichever is the earliest.
c. The Part-time Official Directors (i.e. Government Nominee Directors) are generally from the Administrative Ministry
and their term is co-terminus with the term of the respective position held by them in Government at the time of
appointment on the Company’s Board or until further orders. They are not entitled for any remuneration/sitting fees.
d. The Part-time Non-Official Directors (i.e. Independent Directors) are appointed by Government of India for a period of
3 years or until further orders whichever is earlier. They are entitled to sitting fees for attending the Board/Committee
meetings as prescribed by the Board in adherence with the Govt. directives/statutory rules and regulations. The Board
at its meeting held on 21st June 2021 enhanced the sitting fees payable to the Independent Directors to ₹25,000/-
per sitting for attending the Board Meetings and ₹15,000/- per sitting payable in respect of Board Level Committee
Meetings. The Company has reviewed the sitting fee to be paid to the independent directors and the same is in
compliance with the DPE OM [Link].9(23)/2014-MGMT dated 16 December 2019. The details of the sitting fees
paid to the Independent Directors for attending the Meetings during the year 2022-23 are given below:

Name of the Independent Director Amount (₹)

Shri. Sunil Chintaman Mone 3,30,000
Shri. Nandakumar Subburaman 2,90,000
Prof. (Dr.) Sanghamitra Mishra 3,30,000
Shri. Rajendra Singh Shekhawat 3,30,000
Dr. Pawan Sthapak 2,75,000
Shri Jashwant Lal 25,000

e. The details of remuneration of Functional Directors & KMP, paid during the year 2022-23 is as follows: -
(Amount in ₹)
Company
Contribution
To PF &
VL Incremental
Name of Director/KMP Designation Salary Perquisites Encash- Gratuity / Incentive Total
ment Leave/
Pension-Exe
Scheme &
PSMB II
Cmde Siddharth Mishra (Retd) CMD 45,50,099 9,34,757 19,79,868 9,88,055 11,09,476 95,62,255
Director 14,48,780 3,02,595 25,87,863 5,22,500 7,80,940 56,42,678
Shri NP Diwakar*
(Technical)
Director 10,90,342 2,19,133 - 2,67,044 - 15,76,519
Cmde. A. Madhavarao (Retd.)**
(Technical)
Director 34,39,389 7,06,540 2,90,020 13,08,395 7,24,931 64,69,275
Shri P Radhakrishna
(Production)
Director 32,48,622 6,67,314 2,25,134 11,70,585 4,76,697 57,88,352
Shri N Srinivasulu (Finance) &
CFO
Company 17,43,045 3,59,041 4,40,211 - 1,15,168 26,57,465
Shri. N Nagaraja
Secretary
* Ceased w.e.f 01 September 2022
**Appointed w.e.f 02 January 2023

62 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

f. Stock Options: - The Company has no Stock Option plans/schemes approved by the Board/Shareholders.
g. The Company does not pay any commission to its Directors. Apart from receiving the sitting fee and reimbursement of
expenses incurred in the discharge of their duties, none of the Non-Executive Directors had any pecuniary relationship
or transactions with the Company during the year 2022-23.
h. The provisions of Section 134(3)(p) of the Companies Act, 2013 and Reg.17 & 19 of listing regulations relating
to evaluation of Board of Directors do not apply to your Company since necessary exemptions are provided to all
government companies. Further, similar exemptions were granted to your Company by Securities Exchange Board of
India (SEBI) under the provisions of SEBI (Listing Obligations and Disclosure Requirements {LODR}) Regulations, 2015
vide their letter No. SEBI/HO/CFD/DIL1/OW/P/2018/1679/1 dated 17 January 2018. MCA has also exempted
Government Companies from formulating policy relating to remuneration of Directors required under Section 178 of
the Companies Act, 2013.
C) STAKEHOLDERS RELATIONSHIP COMMITTEE
The composition of the Stakeholders Relationship Committee is in line with Section 178 of the Companies Act, 2013 and
Reg. 20 of the Listing Regulations and DPE Guidelines.
During the year, one (1) meeting of the Stakeholders Relationship Committee was held on 06 February 2023.
The composition of the Committee during the year 2022-23 and the details of attendance of Members for the said
meeting(s) are as follows:
No. of Meetings held No. of Meetings
S. No Name of the Member Category of Directors
during their tenure Attended
1 Shri. Nandakumar Subburaman Non-Executive 1 1
Chairperson Independent Director
2 Shri. Sunil Chintaman Mone Non-Executive 1 1
Member Independent Director
3 Prof. (Dr.) Sanghamitra Mishra Non-Executive 1 1
Member Independent Director
4 Shri. Rajendra Singh Shekhawat Non-Executive 1 1
Member Independent Director
5 Dr. Pawan Sthapak Non-Executive 1 1
Member Independent Director
6 Shri. N Srinivasulu, Director (Finance) Executive 1 0
Member
The Company Secretary acts as the Secretary of the Committee.

Terms of reference:
• To consider and resolve the grievances of the security holders of the Company including complaints related to transfer/
transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of new/duplicate
certificates, general meetings etc.
• To review measures for effective exercise of voting rights by shareholders.
• To review adherence to the service standards adopted by the Company in respect of various services being rendered
by the Registrar & Share Transfer Agent.
• To review various measures and initiatives taken by the Company for reducing the quantum of unclaimed dividends
and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the shareholders of the company
The Company has appointed Company Secretary as Compliance Officer of the Company. His contact details are as follows
Shri. N. Nagaraja
Company Secretary & Compliance Officer
Bharat Dynamics Limited
Plot No.38-39, TSFC Building
Near ICICI Towers, Financial District
Gachibowli, Hyderabad-500032
Telephone No.: 040-23456145
E-mail ID: investors@[Link]

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 63
 The Company endeavor to reply to the complaints within a period of 3 working days. In terms of Regulation 46(2) (j&k)
of the Listing Regulations, the name and designation of Compliance Officer and other relevant details are placed on the
Company’s web-site [Link]. Further, M/[Link] Assignments Ltd., the Share Transfer Agent of the Company (STA), is
authorized to monitor the on-line complaints placed on SEBI Complaints Redress System (SCORES).
In terms of Regulation 13(4) of the Listing Regulations, a quarterly statement on investor complaints received and redressal
thereof, as submitted with BSE and NSE, are placed before the Board for information. Accordingly, the status of total
investor complaints and redressal thereon during the year are as follows:
No. of complaints pending beginning of the year: 0
No. of complaints received during the year: 9
No. of complaints resolved during the year: 9
No. of complaints pending resolved at the end of the year: 0

D) CSR & SD COMMITTEE:

The composition of the CSR & SD Committee is in line with Section 135 of the Companies Act, 2013 and DPE Guidelines.
During the year, four (4) meetings of the CSR &SD Committee meetings were held on 26 May 2022, 26 September 2022,
10 November 2022 and 06 February 2023.
The composition of the Committee during the year 2022-23 and the details of attendance of Members for the said
meeting(s) are as follows:
No. of Meetings held No. of Meetings
S. No Name of the Member Category of Directors
during their tenure Attended
1 Shri. Rajendra Singh Shekhawat Non-Executive 4 4
Chairperson Independent Director
2 Shri. Sunil Chintaman Mone Non-Executive 4 4
Member Independent Director
3 Prof. (Dr.) Sanghamitra Mishra Non-Executive 4 4
Member Independent Director
4 Shri. Nandakumar Subburaman Non-Executive 4 3
Member Independent Director
5 Dr. Pawan Sthapak Non-Executive 4 3
Member Independent Director
6 Shri. P. Radhakrishna, Director (Production) Executive 4 4
Member
The Company Secretary acts as the Secretary of the Committee.

Terms of reference:
• To recommend CSR and Sustainability Development policy to the Board.
• To recommend plan of action and projects to be initiated in the short, medium and long term for CSR and Sustainability
development.
• To recommend the Annual CSR and Sustainability Development Plan and Budget.
• Periodic review of CSR & Sustainability Development policy, plan and budgets

64 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

E) RISK MANAGEMENT COMMITTEE:

The Board has constituted Risk Management Committee in line with provisions of section 178(1) of the Companies Act,
2013 and Regulation 21 of the Listing Regulations.
During the year, two (2) meetings of the Risk Management Committee was held on 12 August 2022 and 06 February 2023.
The composition of the Committee during the year 2022-23 and the details of attendance of Members for the said
meeting(s) are as follows:

No. of Meetings held No. of Meetings

S. No Name of the Member Category of Directors
during their tenure Attended
1 Dr. Pawan Sthapak Non-Executive 2 2
Chairperson Independent Director
2 Shri. Sunil Chintaman Mone Non-Executive 2 2
Member Independent Director
3 Prof. (Dr.) Sanghamitra Mishra Non-Executive 2 2
Member Independent Director
4 Shri. Rajendra Singh Shekhawat Non-Executive 2 2
Member Independent Director
5 Shri. Nandakumar Subburaman Non-Executive 2 2
Member Independent Director
6 Shri. NP Diwakar, Director (Technical) Executive 1 1
Member
The Company Secretary acts as the Secretary of the Committee.
*Ceased to be Director w.e.f 01 Sep 2022

Terms of reference:
• To review and assess the quality, integrity and effectiveness of the Risk Management Systems, especially Financial,
operational, sectoral, sustainability (Particularly ESG related risks), information, Cyber Security risks and any other risks
as identified by the committee and ensure that the risk policies and strategies are effectively managed.
• To ensure that the Company is taking appropriate measures to achieve prudent balance between risk and reward in
both ongoing and new business activities, including business continuity plan.
• To assist the Board in setting Risk strategies, policies, frameworks, models and procedures.
• To review and assess the nature, role, responsibility and authority of the risk management function within the Company
and outline the Scope of risk management work.
• To ensure that the Company has implemented an effective ongoing process to identify risk, to measure the potential
impact against a board set of assumptions and then to activate what is necessary to pro-actively manage these risks,
and to decide the Company’s appetite or tolerance for risk.
• To identify additional risks, if any and decide risk mitigation plans including risk acceptance.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 65
4) NON-MANDATORY COMMITEES OF THE BOARD:
The following are the non-mandatory Committees of the Board
A) PROCUREMENT COMMITTEE:
Procurement Committee is empowered to review and sanction for placement of Purchase Orders/Award of Contracts as
per the limits given below:

Basis Capital Nature Revenue nature

Single Tender/Nomination& Proprietary Cases Upto ₹.30 Crore Upto ₹.30 Crore
Other than Single Tender Cases Upto ₹.60 Crore Upto ₹.60 Crore
Other than Single Tender (works) Upto ₹.100 Crore Upto ₹.100 Crore

The Company has reconstituted the Committee with Chairman & Managing Director as Chairman of the Committee and
other Functional Directors as Members of the Committee. The Committee met six (6) times during the year on 06 May
2022, 13 October 2022 , 02 December 2022, 07 February 2023, 17 February 2023 and 29 March 2023.
B) SHARE CERTIFICATE COMMITTEE
Share Certificate Committee comprising of Ex-Officio members viz Chairman & Managing Director, Director (Finance),
Director (Technical) and Director (Production) has been constituted to consider and approve issue of duplicate certificate,
issue of share certificates on Rematerialisation and Demat requests etc.
C) INDEPENDENT DIRECTORS MEETING:
In terms of the provisions under the Companies Act, 2013 and Regulation 25 of the Listing Regulations, the Independent
Directors met on 06 February 2023 and reviewed the quality, quantity and timeliness of flow of information between the
management of the Company and the Board of Directors that is necessary for the Board to effectively and reasonably
perform their duties. All Independent Directors have attended the meeting. The Minutes of the said Meetings are being
placed in the subsequent Board Meeting(s)
5) GENERAL BODY MEETINGS:
i) All the Annual General Meetings of the Company were held where the Registered Office of the Company is situated. The
details of such meetings for the last three years are as follows:

Financial Date of the Time of the No. of Special

AGM No. Venue of the Meeting
Year Meeting Meeting Resolutions
52 2021-22 26 Sep 2022 15:00 Hrs Corporate Office through VC 5
51 2020-21 27 Sep 2021 15:00 Hrs Corporate Office through VC Nil
50 2019-20 28 Sep 2020 15:00 Hrs Corporate Office through VC Nil

ii) No Extraordinary General Meeting of the Members or any Meeting convened by National Company Law Tribunal (NCLT)
was held during the year 2022-23
iii) No special resolution was put through postal ballot during the year under review. However, in order to comply with
Reg.17(1C) of SEBI listing regulations, one Ordinary Resolution was put through postal ballot, which is for the approval of
appointment of Government Nominee Director Shri. Anurag Bajpai, JS (DIP) on the Board of BDL. The said resolution was
passed with requisite majority.
iv) Person who conducted the postal ballot exercise: CS Navajyoth Puttaparthi from M/s PJ & Co, Practicing Company
Secretaries
v) Whether any Special Resolution is proposed to be conducted through postal ballot: At present, there is no proposal to pass
any special resolution through Postal Ballot.
vi) Procedure for Postal Ballot: Not Applicable

66 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

6) MEANS OF COMMUNICATION:
The Company’s communication system with its Shareholders, Directors and other stakeholders is through all means of
communication channels including correspondence and the official website ([Link]) of the Company. The Company website
provides comprehensive information including the details of business, Company’s Products, Management, vision, mission,
human resources, corporate social responsibility and sustainability, details of Tenders, E-procurement, vigilance, RTI, and other
updates and news. The section on ‘Investors’ informs the shareholders/ investors, details about the investor grievance redressal
system, presentations made to investors/analysts, Company’s code and policies, financial results and annual reports, corporate
governance, shareholding pattern including contact details of Share Transfer Agent and other material events or information
relating to the Company. The Company discloses to the Stock Exchange, all information required to be disclosed under Regulation
30 read with Part A of Schedule III of the Listing Regulations including material information having a bearing on the performance/
operations of the Company or other price sensitive information.
In terms of Listing Regulations, the Quarterly, Half-yearly and Annual financial results of the Company are submitted to NSE and
BSE through online platform immediately after the same are approved by the Board. Further, the said results are simultaneously
posted on the Company’s website [Link] Further, the financial results of the Company
are published in English language national daily newspaper circulating in the whole or substantially the whole of India and in one
daily newspaper published in Telugu, being the regional language and in Hindi, being the National language. The performance of
the Company is communicated to Administrative Ministry every month.
7) GENERAL SHAREHOLDER INFORMATION
(a) The 53rd Annual General Meeting for the year 2022-23 is scheduled on Thursday, the 28 September 2023 at 15:00 hours.
(b) Financial year of the Company begins on April 1 and ends on March 31. The tentative calendar for declaration of results for
the year 2023-24 is given as below:

For the quarter ending 30.06.2023 On or before 14.08.2023

For the quarter ending 30.09.2023 On or before 14.11.2023
For the quarter ending 31.12.2023 On or before 14.02.2023
For the year ending 31.03.2024 On or before 30.05.2024
54th Annual General Meeting On or before 30.09.2024

(c) The Register of Members and Share Transfer Books shall remain closed from 21 September 2023 to 28 September 2023
(both days inclusive).
(d) Dividend will be paid within 30 days from the date of declaration.
(e) Company’s equity shares are listed on the following stock exchanges:

The BSE Ltd (‘BSE’) National Stock Exchange of India Ltd (‘NSE’)
P.J. Towers, 26th Floor, Exchange Plaza, Bandra-Kurla Complex
Dalal Street, Mumbai - 400001 Bandra (East), Mumbai - 400051
The Company has paid listing fees for the financial years 2022-23 and 2023-24 to both the stock exchanges.
(f) The Stock Code assigned to the Company’s equity shares by the respective Stock Exchanges and the ISIN number assigned
by the Depositories for demat trade of the Company’s equity shares are given below:

Stock Exchange Stock Code

BSE 541143
NSE BDL
ISIN INE171Z01018
MCA CIN L24292TG1970GOI001353

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 67
 (g) Reconciliation of share capital audit
The Company obtains a Reconciliation of Share Capital Audit Report from a Practicing Company Secretary every quarter
to reconcile the total admitted capital with the National Securities Depository Ltd (NSDL) and Central Depository Services
(India) Ltd (CDSL) and the total issued and listed capital. This Audit Report confirms that the total issued/paid up capital is in
agreement with the total number of shares in physical form and the total number of dematerialized shares held with NSDL
and CDSL. This Audit Report is forwarded to BSE and NSE where shares are listed. The Company also obtains a Certificate
of Compliance from a practicing Company Secretary once in a year certifying that transfer requests complete in all respects
have been processed and share certificates with transfer endorsements have been issued by the Company within 15 days
from the date of lodgment thereof. This Certificate of Compliance is forwarded to BSE and NSE where shares are listed.
The Company has paid annual custody fees for the financial year 2023-24 to both the Depositories, viz, NSDL and CDSL.
(h) Market Price Data
The details of high/low market prices of the shares of the Company at BSE Ltd and National Stock Exchange of India Ltd
(NSE) are as under:
1) BDL Share Price on BSE vis-a-vis BSE Sensex & S&P BSE 500 Index during 2022-2023 is as follows:

S&P BSE Capital BDL Share Price

BSE Sensex No. of Shares Turnover
Month Goods (Sectoral High Low Close
Close traded (₹. in lakh)
Index)
₹. ₹. ₹.
April, 2022 57060.87 27370.68 904.95 546.15 748.35 3640257 27754.08
May, 2022 55566.41 27144.60 818.60 608.75 783.75 1853278 13211.96
June, 2022 53018.94 26025.50 852.85 648.40 679.75 1917835 14963.97
July, 2022 57570.25 29717.26 819.25 660.65 811.85 1007874 7426.17
August, 2022 59537.07 32224.78 897.65 785.05 816.40 1586020 13300.01
September,2022 57426.92 31217.82 978.90 801.60 874.30 2673285 23899.96
October, 2022 60746.59 33266.16 1026.00 836.15 957.65 1307710 12240.14
November, 2022 63099.65 33846.25 1004.00 912.30 969.25 1021246 9847.43
December, 2022 60840.74 33342.22 991.95 797.35 944.30 1061146 9771.37
January, 2023 59549.90 33806.17 962.80 863.90 945.90 445706 4163.91
February, 2023 58962.12 33862.70 984.00 786.85 933.75 1862616 16887.71
March, 2023 58991.52 34369.70 1012.00 879.00 988.75 802141 7537.63
The Market capitalization of the Company as on 31 March 2023 is ₹ 18121.93 Crore

A comparison of closing quotation of the Company’s share price on BSE with the closing position of BSE SENSEX & S&P
BSE Capital Goods during the year 2022-23 is presented in the following graph:

BSE SENSEX VS BDL SHARE PRICE Sectoral Index Vs BDL Share Price
BSE Sensex Close BDL Share Price S&P BSE Capital Goods (Sectoral Index) BDL Share Price

40000 1200
64000 1200
S&P BSE Capital Goods

62000 35000 1000

1000
BDL Share Price

BDL Share Price

60000 30000
BSE Sensex

58000 800 25000 800

56000 600 20000 600
54000
52000 400 15000 400
50000 200
10000
48000 5000 200
46000 0 0 0

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2) BDL Share Price on NSE vis-a-vis NSE Nifty & Nifty Infra during 2022-2023 is as follows:

Nifty Infra BDL Share Price

NSE Nifty Close No. of Shares Turnover
Month High Low Close
Close (Sectoral traded (₹. in lakh)
Index) ₹. ₹. ₹.
April, 2022 17102.55 5127.85 904.90 545.00 748.20 65997574 497082.61
May, 2022 16584.55 4877.30 812.80 608.45 783.65 33681499 243058.69
June, 2022 15780.25 4619.80 853.35 647.60 681.25 37044863 291335.75
July, 2022 17158.25 4890.55 819.40 660.05 811.75 17760733 129551.68
August, 2022 17759.30 5127.55 897.90 785.75 817.80 26917854 227341.98
September,2022 17094.35 4957.85 979.10 808.00 874.75 44954017 403677.98
October, 2022 18012.20 5234.70 1026.95 835.95 958.20 23976926 224444.15
November, 2022 18758.35 5447.40 1005.00 912.70 969.00 20600614 198332.28
December, 2022 18105.30 5252.10 992.00 797.40 944.10 15252630 140919.82
January, 2023 17662.15 5061.35 963.85 862.65 945.35 7803064 72800.75
February, 2023 17303.95 5016.90 984.00 787.00 934.50 36395842 330126.65
March, 2023 17359.75 5090.95 1013.00 878.50 988.70 17883560 168129.75
The Market capitalization of the Company as on 31 March 2023 is ₹18121.02 Crore

A comparison of closing quotation of the Company’s share price on NSE with the closing position of NSE NIFTY &
NIFTY-INFRA during the year 2022-23 is presented in the following graph:

NIFTY Vs BDL Share Price Sectoral Index (NSE) Vs BSE Share Price
19000 1200 5600 1200
18500 5400 1000
1000

BDL SHARE PRICE

18000
BDL SHARE PRICE

5200
NIFTY INFRA
NIFTY CLOSE

17500 800 800

17000 5000
16500 600 600
4800
16000 400
15500 400 4600
15000 200 4400 200
14500
14000 0 4200 0

NSE Niy Close BDL Share Price Niy Infra Close BDL Share Price

(i) Registrar & Share Transfer Agent

Alankit Assignments Ltd, Delhi, a SEBI registered Category I Registrar and Share Transfer Agent is the Company’s Registrar
and Share Transfer Agent. The RTA’s address is given below to forward all share transfer/ transmission/split/consolidation/
issue of duplicate certificates/change of address requests as well as all Dematerialisation/Rematerialisation requests and
related matters as well as all dividend related queries and complaints:
Alankit Assignments Limited
SEBI Registration Number: INR000002532
4E/2 Jhandewalan Extension, New Delhi-110055
Telephone: +91 11 42541234 ; Facsimile : +91 11 41543474
Email: rta@[Link]; Website: [Link]

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BHARAT
DYNAMICS LIMITED 69
 (j) Share Transfer System
The shares of the Company are traded in dematerialised form.
With respect to shares transferred in electronic form, after confirmation of sale/purchase transaction from the broker,
shareholders should approach their respective depositary participant (DP) with a request to debit or credit the account for
the transaction. The DP will immediately arrange to complete the transaction by updating the account. There is no need for
separate communication either to the Company or STA.
SEBI, vide its notification dated January 24, 2022, has mandated that all requests for transfer of securities including
transmission and transposition requests shall be processed only in dematerialised form. Members can contact the Company
or RTA, for assistance in this regard.
Pursuant to SEBI Circular [Link]/HO/MIRSD/MIRSDPoD-1/P/CIR/2023/37 dated March 16, 2023, issued in supersession
of earlier circulars issued by SEBI bearing nos. SEBI/HO/MIRSD/MIRSD RTAMB /P/CIR/2021/655 and SEBI/HO/MIRSD/
MIRSD RTAMB/ P/CIR/2021/687 dated November 3, 2021 and December 14, 2021, respectively, SEBI has mandated
all the listed companies to record PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their
corresponding folio numbers of holders of physical securities. The folios wherein any one of the cited documents/details is
not available on or after October 1, 2023, shall be frozen by the RTA. The securities in the frozen folios shall be eligible:
• To lodge any grievance or avail of any service, only after furnishing the complete documents / details as mentioned
above;
• To receive any payment including dividend, interest or redemption amount (which would be only through electronic
mode) only after they comply with the above stated requirements.
The forms for updation of PAN, KYC Bank details and Nomination viz., Forms ISR-1, ISR-2, ISR-3, SH-13 and the said SEBI
circular are available on our website
(k) Shareholding Pattern as on March 31, 2023

S. No. Category No. of Shareholders No. of Shares % Holding

1 President of India 1 137325527 74.93
2 Mutual Fund 15 16059051 8.75
3 Insurance Companies 6 9582774 5.23
4 Foreign Portfolio Investors 80 51,78,048 2.83
5 Bodies Corporate 669 1263447 0.69
6 Individuals 158722 12254646 6.68
7 Trusts 5 454 -
8 NRIs 3414 933435 0.51
9 Clearing Members 41 14309 0.01
10 Employees 127 14879 0.01
11 HUF 3413 450355 0.25
12 Alternate Investment Funds 5 202840 0.11
13 NBFCs registered with RBI 2 1425 -
14 Shareholding by Companies or Bodies Corporate where 1 60 -
Central / State Government is a promoter
Total 166501 183281250 100

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(l) Top 10 Shareholders as on March 31, 2023

31-03-2023
Sl. No Name
No. of Shares held %
1 President of India 137325527 74.93
2 Hdfc Trustee Company Ltd 12883927 7.03
3 Max Life Insurance Company Limited 5507312 3.00
4 Life Insurance Corporation of India 2943258 1.61
5 Invesco India psu equity fund 944014 0.52
6 The New India Assurance Company Limited 709426 0.39
7 Mahindra Manulife Multi Cap Fund 635250 0.35
8 Shrikantadevi Radhakishan Damani 601783 0.33
9 iShares Core MSCI Emerging Markets ETF 490700 0.27
10 Vanguard Total International Stock Index Fund 449909 0.25

(m) Distribution of shareholding as on 31 March 2023

Total Physical Demat

No. of No. of No. of
Category % Shares % Shares Shares
shareholders shareholders shareholders
1 - 500 163538 98.22 8024289 4.38 1 10 163537 8024279
501-1000 1757 1.06 1304832 0.71 0 0 1757 1304832
1001-2000 630 0.38 925091 0.50 0 0 630 925091
2001-3000 198 0.12 495742 0.27 0 0 198 495742
3001-4000 69 0.04 243767 0.13 0 0 69 243767
4001-5000 60 0.04 281727 0.15 0 0 60 281727
5001-10000 105 0.06 770515 0.42 0 0 105 770515
10001 & above 144 0.09 171235287 93.43 0 0 144 171235287
Total 166501 100 183281250 100 1 10 166500 183281240

(n) Dematerialisation of Shares and liquidity

The Company’s shares are admitted into both the depositories i.e. National Securities Depository Limited (‘NSDL’) and
Central Depository Services (India) Limited (‘CDSL’). As on 31 March 2023, the number of equity shares in electronic form
and physical form is as follows:

Sl. No Particulars No. of Shares %

1 NSDL 176521184 96.31
2 CDSL 6760056 3.69
3 Physical 10 -
Total 183281250 100.00

The Company’s shares are very liquid and are actively traded in BSE Ltd. and National Stock exchange of India Ltd. Relevant
data of turnover for the financial year 2022-23 is as follows:

Particulars BSE NSE Total

No. of Shares traded 19179114 348269176 367448290
Value (₹.in lakh) 161004.34 2926802 3087806.43

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BHARAT
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 (o) Outstanding GDRs/ADRs/Warrants
There are no outstanding GDRs/ADRs/Warrants or any convertible instruments.
(p) Commodity price/Foreign exchange risk and hedging activities
Relevant information in this regard is disclosed in the Notes to Financial Statements.
(q) Plant Locations

Bharat Dynamics Limited

Kanchanbagh
Hyderabad-500058
Phone: (040)-24587002 ; Fax : (040)-24347513
Bharat Dynamics Limited, Bhanur, Bharat Dynamics Limited, Vizag
Patancheruvu Mandal, “G”- Block, APIIC-IALA
Sanga Reddy District VSEZ post, Vishakapatnam-530049
Hyderabad-502305 Phone : (0891)- 2821500
Phone: (040)-23469551; Fax : (040)-23469552 Fax : (0891)- 2821502

(r) Address for Correspondence/Corporate Office

Bharat Dynamics Limited
CIN: L24292TG1970GOI001353
Corporate Office, Plot No.38-39, TSFC Building,
Financial District, Gachibowli, Hyderabad-500 032
Telephone: (040) 23456145 ; Fax: (040) 23456110
E-mail : investors@[Link]
Website : [Link]
(s) Credit Rating
The Company has obtained ‘A1+’ (Reaffirmed) rating from M/s. CRISIL for short-term Bank facilities for an amount of ₹ 600
Crores.
8) OTHER DISCLOSURES:
a) The Company has no subsidiaries, Joint Ventures and Associate Companies as on 31 March 2023.
b) During the year 2022-23 the Company has not entered into any transaction with the Directors that may have potential
conflict with the interest of the Company at large. The members of the Board, apart from receiving remuneration (wherever
applicable), do not have any material pecuniary relationship or transaction with the Company which, in the Judgment of the
Board, may affect independence of judgment of the Directors.
c) The Company has not entered into any materially significant related party transactions that may have potential conflict
with the interests of the Company at large. Nonetheless, transactions with related parties have been disclosed in Note
No.38(8) of Notes to Accounts in the Annual Report. The Company has formulated a “Policy on Related Party Transactions”
to regulate transactions entered into between the Company and its related parties. In terms of Regulation 46(2)(g) of
the Listing Regulations, the said policy is placed on the web-site of the Company at [Link]
files/2023-06/Policy%20on%20Related%20Party%[Link].
d) During the year, the Company did not comply with the requirement of fifty percent of Independent Directors on the
Board from 01 April 2022 to 31 August 2022 and from 02 January 2023 to 23 February 2023. Accordingly, as per SEBI
Circular No. SEBI/HO/CFD/CM D/CIR/P/2020/12 dated January 22,2020, the stock exchanges (i.e. BSE & NSE) had
levied fine on the Company. The Board suggested that the stock exchanges should be informed about the procedure for
appointment of Directors followed by the Company being a Government Company. The Company accordingly informed
the stock exchanges that being a Government Company under the Administrative control of Ministry of Defence, the
power to appoint Directors (including Independent Directors) and the terms and conditions of their appointments including
remuneration, evaluation etc., vests with the Government of India and as such they should not be held liable to pay the fine.
No fine was paid till date. Further the NSE has imposed fine for five day(s) delay in submission of Related Party Transaction
disclosure for the period end 31 March 2022. After due submissions by the Company, the said exchange has reversed the

72 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

fine. The Company did not comply with the requirement of fifty percent of Independent Directors on the Board during the
last three years. Further Audit Committee, Nomination & Remuneration Committee, Stakeholders Relationship Committee,
and CSR & SD Committee was suspended from 13 September 2020 to 02 January 2022 and Risk Management Committee
was suspended from 05 May 2021 to 02 January 2022 due to no representation of Independent Directors on the Board.
e) Whistle Blower Mechanism/ Vigil Mechanism:
The guidelines of Corporate Governance for CPSEs 2010 issued by DPE and provisions of section 177 of the Companies
Act, 2013 have been complied with. The Whistle Blower Policy of the Company, inter alia, contains a provision enabling any
person to approach the Chairman of the Audit Committee. However, during the year under report, no personnel was denied
access to the members of the Audit Committee or its Chairman. The policy is available on the website of the Company
[Link]
f) All the applicable Accounting Standards are followed except IND-AS-108 relating to Segment reporting keeping in view the
nature of business and the sensitive nature of the disclosure. However, such non-disclosure does not have any financial
effect on the accounts of the Company. Necessary disclosure is being made in Notes forming part of Accounts in this
regard.
g) During the year 2022-23, the Board of Directors has accepted all the recommendations of its committees which were
mandatorily required.
h) There were no items of expenditure debited in the books of account, which are not for the purpose of the business.
i) The Company has not incurred any expenditure which is personal in nature for the Board of Directors and Top management.
j) Details of Administrative and Office Expenses as a percentage of total expenses vis-a-vis financial expenses are furnished
below:
(₹. in Crore)
Sl. No. Particulars 2022-23 2021-22
1 Total Expenditure (other than Materials) 971.70 1006.11
2 Administrative & Office Expenses 15.83 7.09
3 Percentage of (2) on (1) 1.63% 0.70%

k) Presidential Directives and Guidelines:

The Company has been following the Presidential Directives and guidelines issued by the Govt. of India from time to time
regarding reservation for SCs, STs and OBCs in letter and spirit. Officials dealing with the subject were provided necessary
training to enable them to update their knowledge on the subject and perform the job effectively. BDL has implemented
the Presidential Directives issued by the Government of India regarding implementation of Executives Pay revision from 01
January 2017.
l) Details of total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the Statutory
Auditor and all entities in the network firm network entity of which the statutory auditor is a part during the year are given
below:
Amount (₹. in Lakh)
Particulars 2022-23 2021-22
Audit Fees 15.00 10.00
Tax Audit Fees 1.25 1.25
Other Services 5.05 5.25
Reimbursement of Expenses 0.50 0.19
Total 21.80 16.69
*FY 2022-23 fee includes ₹.2.50 lakh pertaining to FY 2021-22
m) No items of expenditure other than directly related to those directly related to its business or incidental thereto, those spent
towards welfare of employees/ex-employees towards fulfilling its corporate social responsibility were debited into books of
account.
n) Unpaid & Unclaimed Dividend details: Pursuant to the applicable provisions of the Companies Act, 2013, read with the
Investor Education and Protection Fund (‘IEPF’) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the
statement furnishing information of unpaid and unclaimed dividend (interim & final) for previous seven years is available

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 73
 on the website of the Company viz. [Link] Further, no unclaimed dividend/shares from
previous years is due to be transferred to the IEPF as on March 31, 2023. The details of the Unclaimed Dividends as on 31
March 2023 is as below:

Particulars No. of shareholders Amount (in ₹.)

Final Dividend 2017-18 920 331053.48
Interim Dividend 2018-19 852 223382.25
Final Dividend 2018-19 842 76537.77
Interim Dividend 2019-20 1327 415956.25
Final Dividend 2019-20 955 125088.80
Interim Dividend 2020-21 886 292569.60
Final Dividend 2020-21 907 30611.10
Interim Dividend 2021-22 735 250357.00
Final Dividend 2021-22 730 39418.00
Total 8154 1784974.25

o) Details with respect to demat suspense account/unclaimed suspense account -There are no outstanding shares lying in the
demat suspense account/unclaimed suspense account as on March 31, 2023.
p) The Company has not raised any funds through preferential allotment or qualified institutions placement as specified in the
Regulations 32(7A) of the Listing Regulations.
q) Loans and advances in the nature of loans to firms/Companies in which Directors are interested –Nil.
r) No subsidiaries including material subsidiaries were incorporated during the year under review.
9) DISCLOSURES IN RELATION TO THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
AND REDRESSAL) ACT, 2013

No. of complaints at the beginning of the year Nil

No. of Complaints filed during the financial Year Nil
No. of Complaints disposed of the during the year Nil
No. of Complaints pending as on end of the financial year Nil

10) DETAILS OF NON-COMPLIANCES

During the year, the Company did not comply with the requirement of fifty percent of Independent Directors on the Board from
01 April 2022 to 31 August 2022 and from 02 January 2023 to 23 February 2023. It is informed that being a Government
Company, all Directors on the Company’s Board are appointed by the Govt. of India and the selection process & appointment,
which involves various Ministries and approval by the Appointment of Cabinet Committee (ACC) and it is beyond the control of
the Company. All the vacancies are being promptly notified to the Government for filling up at the earliest possible. Further the
NSE has imposed fine for five day(s) delay in submission of Related Party Transaction disclosure for the period end 31 March
2022. After due submissions by the Company, the said exchange has reversed the fine.
11) COMPLIANCE WITH NON-MANDATORY PROVISIONS
The status on the compliance with the non-mandatory recommendation in the SEBI (LODR) Regulations, 2015 is as under:
• The Company has the position of Chairman & Managing Director (Executive) and there is no Non-Executive Chairman.
• The financial statements of the Company are disclosed with unmodified audit opinion.
• Process of communicating with shareholders is effective and the procedure has been explained under “Means of
Communication”.
• The Additional General Manager (Internal Audit) administratively reports to Director (Finance) & CFO and is an invitee to
the meetings of audit committee.

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12) CODE FOR PREVENTION OF INSIDER TRADING AND FAIR DISCLOSURE

In accordance with the SEBI (Prohibition of Insider Trading) Regulations 2015 (as amended), the Company has put in place a Code
of Conduct and Disclosure Procedure to prevent insider trading in the Company’s securities and for transparent/streamlined
disclosure/dissemination of information to the investors/ public. The connected persons as defined under the Code should
obtain permission from the Competent Authority to deal in securities during the trading window beyond the specified limits.
Periodical disclosures are also required to be made as provided under the Code to prevent the instance of insider trading. The
Code of Conduct and Fair Disclosure Procedure has been posted in the Company’s website [Link]
files/2022-12/Insider%20Trading%20Policy%[Link]. The Policy is framed to ensure that the insiders do not derive any
benefit or assist others to derive any benefit from access to and possession of price sensitive information about the Company
which is not in the public domain.
13) COMPLIANCE
The Company has duly complied with the requirements specified in Regulations 17 to 27 and Clauses (b) to (i) of sub-regulation
(2) of Regulation 46 of the Listing Regulations and DPE Guidelines except Composition of Board of Directors from 01 April
2022 to 31 August 2022 and from 02 January 2023 to 23 February 2023. The Company has also been submitting to the
Stock Exchanges and to the Government, quarterly compliance report on Corporate Governance. As required under the Listing
Regulations with the Stock Exchanges, the Auditors’ Certificate on compliance of conditions of Corporate Governance by the
Company is attached to this report.
14) CEO/CFO CERTIFICATION
In terms of Regulation 17(8) of SEBI (LODR) Regulations the Compliance Certificate issued by the CEO and CFO on the financial
statements and internal controls relating to financial reporting for the year 2022-2023 is attached with this report.
15) CODE OF CONDUCT FOR DIRECTORS AND SENIOR EXECUTIVES:
A Code of Conduct and Business Ethics as suggested by DPE in its Guidelines on Corporate Governance for CPSEs 2010 and
under regulation 17(5) of SEBI (LODR) Regulations 2015 has been adopted by the Company in respect of its Directors and Senior
Level Executives. The Code has also been posted on the Company’s [Link]
of%20Conduct_0.pdf. The Directors and the Senior Executives have given declarations affirming the compliance with the code
of conduct during the year 2022-23. A declaration to this effect by the Chairman & Managing Director is given below:
Declaration by Chairman & Managing Director:
It is hereby declared that all Board Members and Senior Management Personnel affirmed compliance with “The Code of Business
Conduct & Ethics for Board Members and Senior Management of Bharat Dynamics Limited” for the year ended 31 March 2023.

For and on behalf of the Board

P Radhakrishna
Director (Production) &
Place : Hyderabad Chairman & Managing Director (Addl. Charge)
Date : 25 May 2023 DIN: 08437975

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76 BHARAT
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78 BHARAT
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COMPLIANCE CERTIFICATE
Under Regulation 17(8) of SEBI (LODR Regulations)

A. We have reviewed the Financial results for the quarter and year ended 31 March
2023 and to the best of our knowledge and belief:

(i) These Statements do not contain any materially untrue statement or omit any
material fact or contain statements that might be misleading:

(ii) These Statements together present a true and fair view of the Company's
affairs and are in compliance with the existing accounting standards,
applicable laws and regulations.

B. To the best of our knowledge and belief, no transactions entered into by the
Company during the year are fraudulent, illegal or violative of the Company's code of
conduct.

C. We accept responsibility for establishing and maintaining internal controls for

financial reporting and that we have evaluated the effectiveness of internal control
systems of the Company pertaining to financial reporting and we have disclosed to
the auditors, deficiencies in the design, operation of such internal controls, if any, of
which we are aware and the steps we have taken or propose to take to rectify these
deficiencies.

D. We have indicated to the Company's auditors that:

(i) there are no significant changes in internal control over financial reporting
during the period.

(ii) there are changes in accounting policy during the year and that the same
have been disclosed in the notes to the financial statements and

(iii) there are no instances of significant fraud which I have become aware
and the involvement therein, if any of the Management or an employee
having a significant role in the Company's internal control system over
financial reporting.

P RADHA KRI N SRINIVASULU

CHAIRMAN A MANAGING DIRECTOR DIRECTOR (FINANCE) &
(Additional charge) & CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
OFFICER

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BHARAT
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 Business Responsibility &
Sustainability Report
80 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Business Responsibility & Sustainability Report

Headquartered in Hyderabad, Bharat Dynamics Limited (BDL), and propellants for various Anti-Tank Guided Missiles (ATGMs)
was incorporated on 16 July, 1970 as a Public Sector Undertaking respectively.
under the Ministry of Defence, Government of India to be
BDL has been constantly working towards upgrading its
the manufacturing base for guided missile systems and allied
manufacturing technologies and processes to state-of-the-art
equipment for the Indian Armed Forces.
including industry 4.0, Robotics operated workshops, latest
Since its inception, BDL has been working in collaboration with Surface Mounted Devices assembly lines and has always
DRDO & foreign Original Equipment Manufacturers (OEMs) for maintained highest quality standards in its products by adopting
manufacture and supply of various missiles and allied equipment to best QA practices like AS 9100, etc. The pursuit has resulted in
to Indian Armed Forces. reduction in production cost, benchmarking of productivity norms
The lead taken by the Nation to develop indigenous, sophisticated and modernization of management system and less dependence
and contemporary missiles through the Integrated Guided Missile on imported technology.
Development Programme (IGMDP), gave BDL an opportunity to The ‘ease of doing business’ approach adopted by the Government
be closely involved in the programme, wherein it was identified of India has paved the way to create a congenial ecosystem for
as the Prime Production Agency. This opened up a plethora the company to manufacture products indigenously and offer
of opportunities to assimilate advanced manufacturing and its products/services to the customers, both, the Indian Armed
programme management technologies and skills. Forces and the global buyers. During last few years, the Company
Today, BDL has evolved as one among the few industries in has forayed into international market by offering its products to
the world having state-of-the-art facilities for manufacture and friendly foreign countries. The export order book position of the
supply of Guided Missiles, Underwater Weapons, Air- borne Company stands at ₹2586 Crore as on 1 April 2023.
products and allied defence equipment for the Indian Armed BDL, with its over five decades of missile and allied defence
Forces. The Company also offers Product Life Cycle Support and equipment manufacturing experience, skill-sets developed and
Refurbishment / Life Extension of vintage Missiles. state-of-the-art infrastructure, is poised to enter new avenues of
BDL has graduated from being a missile manufacturer to a manufacturing covering a wide range of weapon systems such as
Weapon System Integrator and has emerged as a complete Air-to-Air Missiles, Air-to-Surface Missiles, Air Defence Systems,
solution provider for the Indian Armed Forces. Underwater Weapons and Mines.
BDL has three manufacturing units, out of which two are located in The quest for technological excellence has been the guiding
Telangana State (Hyderabad and Bhanur) and one Andhra Pradesh principle of BDL and living up to the sobriquet, ‘THE FORCE
(Visakhapatnam). As a part of expansion plan, the Company is in BEHIND PEACE’.
the process of setting up of additional manufacturing facilities at
Ibrahimpatnam (near Hyderabad), Amravati in Maharashtra and
Jhansi in UP which will be used to manufacture Surface to Air
Missiles (including new generation Missiles), VSHORAD rockets

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 81
SECTION A: GENERAL DISCLOSURES
I) Details of the listed entity

Corporate Identity Number (CIN)

Name of the Listed Entity: Year of incorporation:
of the Listed Entity:
Bharat Dynamics Limited 1970
L24292TG1970GOI001353

Corporate address:
Registered office address:
Plot No.38-39, TSFC Building, Near ICICI
KANCHANBAGH, HYDERABAD
Towers, Financial District, Nanakramguda
TELANGANA 500058 INDIA
HYDERABAD TELANGANA 500032 INDIA

E-mail: investors@[Link] Telephone: 040-23456173 Website: [Link]

Name of the Stock Exchange(s)

Financial year for which
where shares are listed: Paid-up Capital:
reporting is being done:
BSE Limited and National Stock ₹1832812500
April 2022-March 2023
Exchange of India Limited

Reporting boundary - Are the disclosures

Name and contact details (telephone,
under thisreport made on a standalone
email address) of the person who may be
basis (i.e. only for the entity) or on a
contacted in case of any queries on the
consolidated basis (i.e. for the entity and
BRSR report:
all the entities which form a part of its
N Nagaraja, Company Secretary
consolidated financial statements, taken
Email: investors@[Link]
together):
Contact Number: 040-23456145
Standalone

II) Products/services
Details of business activities (accounting for 90% of the turnover):

% of Turnover
Sl. No. Description of Main Activity Description of Business Activity
of the entity
1 Manufacturing of Weapon Missiles, Underwater weapons and Allied Defence Equipments 96
Systems
2 Repairs & Maintenance Repairs & Overhauls and Job work 4

Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

Sl. No. Product/Service NIC Code % of total Turnover contributed

1 Weapon systems 29271 96

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III) Operations
Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of plants Number of offices Total

National 3 2 5
International 0 0 0

Markets served by the entity:

a. Number of locations

Locations Number
National (No. of States) Entire Indian Territory through Defence Forces
International (No. of Countries) 2

b. What is the contribution of exports as a percentage of the total turnover of the entity?
Around 4% of the total turnover
c. A brief on types of customers:
BDL supplies to both national and international customers catering to Defence. The majority of the Company’s supplies are
to the Indian Armed forces namely Indian Army, Indian Navy and Indian Air Force
IV) Employees
Details as at the end of Financial Year:
Employees and workers (including differently abled):

S. Total Male Female

Particulars
No. (A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 807 704 87.24% 103 12.76%
2. Other than Permanent (E) 255 212 83.14% 43 16.86%
3. Total employees (D + E) 1062 916 86.25% 146 13.75%
WORKERS
4. Permanent (F) 1742 1556 89.32% 186 10.68%
5. Other than Permanent (G) 1465 1165 79.52% 300 20.48%
6. Total workers (F + G) 3207 2721 84.84% 486 15.15%

Differently abled Employees and workers:

S. Total Male Female

Particulars
No (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 23 20 86.96% 3 13.04%
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled employees (D + E) 23 20 86.96% 3 13.04%
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 75 70 93.33% 5 6.67%
5. Other than permanent (G) 0 0 0 0 0
6. Total differently abled workers (F + G) 75 70 93.33% 5 6.67%

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 Participation/Inclusion/Representation of women

Total No. and percentage of Females

(A)
No. (B) % (B / A)
Board of Directors 12 1 8.33
Key Management Personnel 5 0 0

Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)

FY 2022-23 FY 2021-22 FY 2020-21

Male Female Total Male Female Total Male Female Total
Permanent Employees 1.67 0 1.1 4.86 3.85 4.73 3.89 0.95 3.55
Permanent Workers 5.01 2.11 4.7 3.35 2.55 3.26 4.84 2.46 4.6

V. Holding, Subsidiary and Associate Companies (including joint ventures)

Names of holding/subsidiary/associate companies/joint ventures: NIL
VI) CSR Details
i) Whether CSR is applicable as per section 135 of Companies Act, 2013 (Yes/No) : Yes
ii) Turnover (in ₹) : ₹2,489 crore
iii) Net worth (in ₹) : ₹3,211 crore
The details of complete CSR activities are reported in the Annual Report-2022-23 as Annexure-I
VII) Transparency and Disclosures Compliances
Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
Conduct:
BDL abides by the code of conduct (CoC), which is a comprehensive document for ethical conduct for all internal and external
stakeholders of the Company, thus covering 100% of its operations. Code of Conduct has sections with sub-clauses that
cover employees, customers, communities and the environment, value chain partners, financial stake holders, governments, and
group companies. The CoC extends to Group JVs/Subsidiaries/Suppliers/Contractors. There are defined channels for receiving
complaints/grievances from stakeholders and these are addressed with expediency in upholding the ethical standards practiced
in the Group.

Grievance Redressal FY 2022-23 FY 2021-22

Mechanism in Place (Yes/No) Current Financial Year Previous Financial Year
Stakeholder
group from Number of Number of
whom Number of complaints Number of complaints
complaint is (If Yes, then provide web-link complaints pending complaints pending
Remarks Remarks
received for grievance redress policy) filed during resolution at filed during resolution
the year close of the the year at close of
year the year
Communities Centralised Public Grievance 22 1 Nil 23 Nil Nil
Redress and Monitoring
System (CPGRAMS) under the
Ministry of Personnel, Public
Grievances & Pensions, the
Department of Administrative
Reforms & Public Grievances
Investors NA Nil Nil Nil Nil Nil Nil
(other than
shareholders)

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Grievance Redressal FY 2022-23 FY 2021-22

Mechanism in Place (Yes/No) Current Financial Year Previous Financial Year
Stakeholder
group from Number of Number of
whom Number of complaints Number of complaints
complaint is (If Yes, then provide web-link complaints pending complaints pending
Remarks Remarks
received for grievance redress policy) filed during resolution at filed during resolution
the year close of the the year at close of
year the year
Shareholders YES 9 9 33 33
[Link]
details-investor-grievance-
redressal
Employees YES 2 0 1 0
and workers [Link]/sites/default/
files/202001/14%20
grievance%[Link]
Customers Yes* 23 4 19 7
Value Chain Yes** Nil Nil Nil Nil
Partners
Other (please 18 0 16 0
specify)
* BDL supplies to both national and international customers catering to Defence. The majority of the Company’s supplies are to
the Indian Armed forces, hence all communication with customers is confidential information, so there is no weblink of the same.
The issues were discussed with the customer and appropriate action has been taken
** CVC has appointed Independent External Monitors as an alternative mechanism for dispute resolution between the
stakeholders, the contact details of the IEMs are provided in the [Link]
%26%20functions%20of%20Independent%20External%20Monitors%20(IEMs)_0.pdf, hence there is no separate web-link for
the policy
Overview of the entity’s material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters
that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk
along-with its financial implications:

Financial
Indicate
implications of the
whether In case of risk,
Sl. Material Issue Rationale for identifying Risk/ risk or opportunity
Risk or approach to adapt or
No. Identified Opportunity (Indicate positive
Opportunity mitigate
or negative
(R/O)
implications)
1 Environmental Inadvertent non-compliance to Reduction in Negative
Footprint existing and emerging regulations waste generation,
-Waste around recycling can result in maximization of
management statutory fines & penalties and also recycling and reuse.
will lead to reputation damage.

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 Financial
Indicate
implications of the
whether In case of risk,
Sl. Material Issue Rationale for identifying Risk/ risk or opportunity
Risk or approach to adapt or
No. Identified Opportunity (Indicate positive
Opportunity mitigate
or negative
(R/O)
implications)
2 Social The business must be rooted in Fostering local Negative
Responsibility community and be aligned with the communities,
-Alignment community’s larger interests. Any job creation, skill
with Local adversarial relationship can hurt the development,
Communities company’s ability to create longer supporting local relief
term value efforts where required
in times of crisis and
paying taxes
3 Corporate BDL being a CPSE, the appointment Negative
Governance of Directors are made by Govt. of
— Board India and the Company has no control
composition over filling up of the vacancy within
the stipulated time frame specified
under the Act/ Rules / Regulations,
to comply with the same.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.
BDL has a well-established Sustainability Governance Structure to benchmark, implement and monitor sustainability aligned decisions
and actions. The sustainability performance funnels into the Apex Leadership team and the CSR Committee at Board for guidance.
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.

Board

BU Heads

Corporate
Sustainability Team

Sustainability Champions

SUSTANABILITY GOVERNANCE STRUCTURE

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P P P P P P P P P
Sl. No. Disclosure Questions
1 2 3 4 5 6 7 8 9

Policy and management processes

1 A Whether your entity’s policy/policies cover each principle Yes Yes Yes Yes Yes Yes Yes Yes Yes
and its core elements of the NGRBCs. (Yes/No)
B Has the policy been approved by the Board? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
C Web Link of the Policies, if available [Link]
-02/ESG%[Link]
2 Whether the entity has translated the policy into Yes Yes Yes Yes Yes Yes Yes Yes Yes
procedures. (Yes / No)
3 Do the enlisted policies extend to your value chain Yes Yes Yes Yes Yes Yes Yes Yes Yes
partners? (Yes/No)
4 Name of the national and international codes/ BDL divisions are certified to AS 9100D/ISO 9001:2015
certifications/labels/ standards (e.g. Forest Stewardship (QMS)/ISO 14001:2015 (EMS)/ISO / IEC 17025:2017/
Council, Fairtrade, Rainforest Alliance, Trustea) standards ISO/IEC 27001:2013
(e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity
and mapped to each principle.
5 Specific commitments, goals and targets No
set by the entity with defined timelines, if any.
6 Performance of the entity against the specific NA
commitments, goals, and targets along-with reasons in
case the same are not met.
Governance, leadership, and oversight
7 Statement by director responsible for the business The Company being a Defence Manufacturing
Company, its products are tested at various level
responsibility report, highlighting ESG related challenges,
targets and achievements (listed entity has flexibility with many trials, which has impact on environment.
regarding the placement of this disclosure) We aim to create a sustainable future through environment
conservation activities for the community. All emissions
and waste generated are monitored as prescribed by the
Pollution Control Boards. The Company is also actively
promoting socioeconomic rejuvenation through targeted
CSR activities such as healthcare, Skill Development
for Employment Enhancement & Self Employment,
Education, Sanitation, Drinking Water, Environment
Sustainability and Sports Development etc.
8 Details of the highest authority responsible CMD and Director (Finance)
for implementation and oversight of the
Business Responsibility policy(ies).
9 Does the entity have a specified Committee of the Yes, CMD and Director (Finance) are responsible for
Board/ Director responsible for decision making on decision making on sustainability related issues.
sustainability related issues? (Yes/No). If yes, provide
details.
10 Details of Review of NGRBCs by the Company
Performance against above policies and follow up P P P P P P P P P
action 1 2 3 4 5 6 7 8 9
Indicate whether review was undertaken by Director / Yes Yes Yes Yes Yes Yes Yes Yes Yes
Committee of the Board/ Any other Committee
Frequency As and when required
(Annually/Half-Yearly/Quarterly/Any other-please specify)

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 Compliance with statutory requirements of relevance P P P P P P P P P
to the principles, and, rectification of any non- 1 2 3 4 5 6 7 8 9
compliances
Indicate whether review was undertaken by Director / Yes Yes Yes Yes Yes Yes Yes Yes Yes
Committee of the Board/ Any other Committee
Frequency As and when required
(Annually/Half-Yearly/Quarterly/Any other-please specify)
11 Has the entity carried out independent assessment/ No No No No No No No No No
evaluation of the working of its policies by an external
agency? (Yes/No). If yes, provide name of the agency.***

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key
processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are
expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by
entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible.
PRINCIPLE 1:
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.
Essential Indicators
1) Percentage coverage by training and awareness programmes on any of the principles during the financial year:
BDL is guided by the principles of the code of conduct. The Company requires its employees to be aware of the code and conduct
themselves in line with the principles outlined therein. There are regular training sessions for new inductees and annual online
certification/re-certification on the learning platform which are required to be completed to ensure thorough dissemination of
what is considered ethical conduct and the repercussions of non-adherence.

% age of
Total number
persons in
of training and
Segment Topics / principles covered under the training and its impact respective
awareness
category covered
programmes held
by the awareness
During the year, the Board engaged in various updates pertaining to 100%
business, regulatory, safety, Cyber Security, BDL code of conduct,
Ongoing integrity, ESG matters etc. These topics provided insights on
Board of
process-Multiple the said Principles. Further newly joined Independent Directors
Directors
programs are provided orientation program conducted by Department of
Public Enterprises for capacity building which includes topics like
Corporate Governance, Business Ethics and Values etc
Key Managerial Capacity building, wellness, Integrity, Business Ethics, BDL code of 100%
2
Personnel conduct/Cyber Security
5 Cyber security ( 124 Nos trained) 5%
5 Environment (145 Nos trained) 6%

Employees & 1 Governance (2 Nos trained) 0%

workers other 7 Safety (133 Nos trained) 5%
than BoD and 5 Vigilance, Integrity & Ethics (121 Nos trained) 5%
KMPs
2 Wellness ( 116 Nos trained) 5%
Apart from above, awareness sessions provided to all employees on occasion of Safety day, World
Environment Day and Vigilance week

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2) Details of fines/penalties/punishment / award / compounding fees / settlement amount paid in proceedings (by the entity
or by directors / KMPs) with regulators/ law enforcement agencies / judicial institutions, in the financial year. (Note: the
entity shall make disclosures on the basis of materiality as specified in Regulation 30 of the Listing Regulations, 2015 and as
disclosed on the entity’s website):

Monetary
NGRBC Name of the regulatory/enforcement Amount Brief of Has any appeal been
Principle agencies/judicial institutions (in `) the case preferred? (Yes/No)
Penalty/Fine
Settlement NIL
Compounding Fee

Non-Monetary
NGRBC Name of the regulatory/enforcement Brief of the Has any appeal been
Principle agencies/judicial institutions case preferred? (Yes/No)
Imprisonment
NIL
Punishment

3) Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-
monetary action has been appealed: Not Applicable
4) Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-
link to the policy: Yes. [Link]
5) Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency
for the charges of bribery/ corruption:
No Directors/KMPs/employees/workers were involved in bribery/corruption both in FY23 and FY22. On above grounds, no
action was taken by any law enforcement agency.
6) Details of complaints with regard to conflict of interest:
No complaints were received with regard to conflict of interest against Directors/KMPs in FY22-23 and FY21-22.
7) Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators
/ law enforcement agencies / judicial institutions, on cases of corruption and conflicts of interest:
Not applicable, as there is no fines/penalties/action taken by any law enforcement authority during the financial year
Leadership Indicators
1) Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

Total number %age of value chain partners

of awareness covered (by value of business
Topics / principles covered under the training
programmes done with such partners) under
held the awareness programmes
Vendor meets covering ‘integrity pledge for citizens’ to vendors and
7 emphasized on Multiple Vendor Development to reduce dependency, 70
increase competitiveness and to ensure transparency and accountability

2) Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If
Yes, provide details of the same.
Yes, the Company takes an Annual declaration forms from the Board Members on conflict of interest and also Board Members
are well informed to stay away in case of any conflict of interest in any matter

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 PRINCIPLE 2:
Businesses should provide goods and services in a manner that is sustainable and safe
Essential Indicators
1) Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively:

Financial Year Financial Year

Details of improvements in environmental and social impacts
2022-23 2021-22
R&D 6.11% 1.71% Nil. BDL products are of use in strategic/national security applications and are
developed and certified according to the customer specifications
Capex 4.58% 3.66% Nil

2) Does the entity have procedures in place for sustainable sourcing? No

3) Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end of life, for (a)
Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste:
Missile and rocket equipment for use in strategic or national security applications are the company’s principal products. After the
products are sold, no one would return to the business. As a result, the corporation is unable to recover the goods. However,
BDL has a set procedure in place for the safe end-of-life disposal of the goods utilized in its operations as well as for their reuse
and recycling.
4) Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste
collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not,
provide steps taken to address the same.
Extended Producer Responsibility is currently not applicable to BDL activities. However, waste management plan of the
Company considers the evolving regulations both from a waste minimization and recycling/reuse perspective. BDL also engages
its communities to propagate plastic reuse through its energy and resource conservation programs.
Leadership Indicators
1) Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry) or
for its services (for service industry)? No
2) If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products
/ services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the
same along-with action taken to mitigate the same. Not Applicable
3) Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry)
or providing services (for service industry): Nil
4) Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely
disposed, as per the format: Nil
5) Reclaimed products and their packaging materials (as percentage of products sold) for each product category. Nil

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PRINCIPLE 3:
Businesses should respect and promote the well-being of all employees, including those in their value chains
Essential Indicators
1) a) Details of measures for the well-being of employees:
% of employees covered by
Accident Day Care
Category Health insurance Maternity benefits Paternity Benefits
Total insurance facilities
(A)
Number % Number % (C Number Number Number
% (D /A) % (E / A) % (F/A)
(B) (B/A) (C) /A) (D) (E) (F)
Permanent employees
Male 704 704 100% 704 100% 0 0 704 100 704 100%
Female 103 103 100% 103 100% 103 100% 0 0 103 100%
Total 807 807 100% 807 100% 103 12.76% 704 87.24% 807 100%
Other than Permanent employees
Male 212 212 100% 212 100% - - 0 0 0 0
Female 43 43 100% 43 100% 43 100% 0 0 0 0
Total 255 255 100% 255 100% 43 100% 0 0 0 0

b. Details of measures for the well-being of workers:

% of workers covered by
Accident Day Care
Category Health insurance Maternity benefits Paternity Benefits
insurance facilities
Total (A)
Number % (B / Number % (C / Number % (D / Number Number % (F /
% (E / A)
(B) A) (C) A) (D) A) (E) (F) A)
Permanent employees
Male 1556 1556 100% 1556 100% 0 0 1556 100% 1556 100%
Female 186 186 100% 186 100% 186 100% 0 0 186 100%
Total 1742 1742 100% 1742 100% 186 10.68% 1556 89.32% 1742 100%
Other than Permanent employees
Male 1165 1076 92.36 1165 100 0 0 0 0 0 0
Female 300 262 87.33 300 100 0 0 0 0 0 0
Total 1465 1338 91.33 1465 100 0 0 0 0 0 0

2) Details of retirement benefits, for Current FY and Previous Financial Year:

FY 2022-23 FY 2021-22
No. Of No. Of No. Of No. Of Deducted and
Deducted and
Benefits employees workers employees workers deposited
deposited with
covered as covered as covered as covered as with the
the authority
a % of total a % of total a % of total a % of total authority
(Y/N/N.A.)
employees employees employees employees (Y/N/N.A.)
PF 100 100 Y 100 100 Y
Gratuity 100 100 Y 100 100 Y
ESI Nil Nil NA Nil Nil NA
Others – please specify
Leave Encashment 100 100 NA 100 100 NA
Contributory Pension 100 100 NA (Voluntary 100 100 NA (Voluntary
deduction) deduction)
Group Insurance Scheme 100 100 Y 100 100 Y

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3) Accessibility of workplaces
Are the premises/offices of the entity accessible to differently abled employees and workers, as per the requirements of the
Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes, BDL complies with the requirements as prescribed under Rights of Persons with Disabilities Act, 2016
4) Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.
Yes, the web link to the policy is [Link]
5) Return to work and Retention rates of permanent employees and workers that took parental leave:

Permanent employees Permanent workers

Gender Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100% 100% 100%
Female 100% 100% 100% 100%
Total 100% 100% 100% 100%

6) Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If
yes, give details of the mechanism in brief:

Yes/No
(If Yes, then give details of the mechanism in brief)
Permanent Workers/ Other Yes. The procedure has three stages to ensure transparency and involvement of higher officers
than Permanent Workers in case of any difficulty faced by lower level officers to redress the grievances. At the first
stage, the employee has to put in his grievance in a specific format to the Sectional Head.
The decision will be communicated to the aggrieved employee within 6 days by the Sectional
Head.
In the second stage, the employee may put in his grievance to the Departmental Head and the
Departmental Head will give his decision within 10 days.
In the third stage, the employee may prefer a representation to the Secretary of the Grievance
Redressal Committee. The Committee after consultation with the Officers concerned and the
aggrieved employee give its decision within 15 days.
Permanent Employees/ Other Yes. An aggrieved officer, shall present his grievance in writing giving full details of his
than Permanent Employees grievance to his Departmental Head, who shall meet the concerned officer in the presence
of the Officer’s immediate superior. After hearing the grievance, the Head of the Department
should give his decision within fifteen days of the receipt of the grievance.
At second stage, the employee may send a representation to the Secretary or the Grievance
Redressal Committee with a copy to Departmental Head, who gave/did not give the decision
at the first stage who will give its recommendations to the General Manager/Head of the
Division within one month from the date of receipt of the grievance by the secretary of the
committee. The decision of the General Manager/Head of the Division which will be conveyed
to the aggrieved officer within one month from the date of receipt of the recommendation of
the Grievance Committee, will be final.
In exceptional cases, the aggrieved officer whose grievance was considered and who is not
satisfied with the decision of the General Manager/Head of the Division, will have the option
to appeal to the Managing Director/Director concerned. Decision of such appeals will be taken
within one month from the date of receipt of appeal and conveyed to the officer. The decision
of the Managing Director/Director concerned, as the case may be, will be final and binding on
the aggrieved officer.

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7) Membership of employees and worker in association(s) or Unions recognized by the listed entity:

FY 2022-23 FY 2021-22

Total No. of employees / Total No. of employees /

Category employees workers in respective employees workers in respective
%
/ workers in category, who are % (B/A) / workers in category, who are
(D/C)
respective part of association(s) respective part of association(s)
category (A) or Union (B) category (C) or Union (D)

Total Permanent 807 807 100% 824 824 100%

Employees
Male 704 704 100% 724 724 100%
Female 103 103 100% 100 100 100%
Total Permanent Workers 1742 1742 100% 1838 1838 100%
Male 1556 1556 100% 1647 1647 100%
Female 186 186 100% 191 191 100%

8) Details of training given to employees and workers:

FY 2022-23 FY 2021-22
On Health and safety On Skill On Health and safety On Skill
Category Total Total
measures upgradation measures upgradation
(A) (D)
No. (B) % (B /A) No. (C) % (C / A) No. (E) % (E /D) No. (F) % (F / D)
Employees
Male 704 224 31.82% 14 1.98% 724 11 1.52% 56 7.73%
Female 103 25 24.27% 0 0% 100 1 1% 12 12%
Total 807 249 30.86% 14 1.73% 824 12 1.46% 68 8.25%
Workers
Male 1556 9 0.58% 0 0% 1647 2 0.12% 0 0%
Female 186 0 0.12% 0 0% 191 0 0% 0 0%
Total 1742 9 0.52% 0 0% 1838 2 0.11% 0 0%

9) Details of performance and career development reviews of employees and worker:

FY 2022-23 FY 2021-22
Category
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Employees
Male 704 86 12.22% 724 148 20.44%
Female 103 11 10.68% 100 24 24.00%
Total 807 97 12.02% 824 172 20.87%
Workers
Male 1556 384 24.68% 1647 290 17.61%
Female 186 48 25.81% 191 32 16.75%
Total 1742 432 24.80% 1838 322 17.52%

All the employees undergo Performance and Career Development Reviews. The Company has a robust IT tool to conduct the
same. Discussions are carried out periodically and feedback for development is provided. Performance review of workers are
determined on the basis of Productivity Linked Performance.

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10) Health and safety management system:
a) Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes,
the coverage such system?
Yes, safety is a core value over which no business objective can have a higher priority. BDL Safety Management Framework
covers all the business activities and the same are aligned with the BDL Health and Safety Management System as well as
ISO 45001:2018 requirements. The coverage is 100% and includes all employees and workers.
b) What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the
entity?
BDL Safety Management System comprises standard safety processes for identifying Work related hazards and assess risks.
c) Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks.
Yes, the Company has an established Hazard Identification and Risk Assessment (HIRA) process for both routine and non-
routine jobs
d) Do the employees/ worker of the entity have access to non-occupational medical and healthcare services?
Yes, all the sites have access to non-occupational medical and healthcare services either on-site or nearby. In addition,
personnel are being trained to respond appropriately to medical emergencies on-site.
11) Details of safety related incidents:

Safety Incident/Number Category FY 2022-23 FY 2021-22

Lost Time Injury Frequency Rate (LTIFR) (per one Employees Nil Nil
million-person hours worked) Workers Nil 0.344 (only casual labours manpower
hours considered in FR calculation
Total recordable work-related injuries Employees Nil Nil
Workers Nil 1 (Casual)
No. of fatalities Employees Nil Nil
Workers Nil Nil
High consequence work-related injury or ill-health Employees Nil Nil
(excluding fatalities) Workers Nil 1 (Casual)

12) Describe the measures taken by the entity to ensure a safe and healthy work place:
Hazard identification, Risk Assessment and Management is done in accordance with Hazard Identification and Risk Assessment
(HIRA) Procedure and Job Safety Analysis (JSA) Procedure.
Hierarchy of controls is followed for application of risk control measures, Control Plans commensurate to risk are deployed
before execution of job. No job is executed until risks are brought to acceptable range.
Safety Committees are in place at various levels to review the adequacy of resources for safety and to provide support for safety
management system deployment.
Deployment of Safe and Healthy system of work is assured through periodic safety audits and inspections across sites.
13) Number of Complaints on the Working Conditions and Health and Safety made by employees and workers: Not Applicable
14) Assessments for the year:

% of your plants and offices that were assessed

(by entity or statutory authorities or third parties)
Health and safety practices
100% (TS Factories Dept/CFEES/EMS [ISO 14001:2015] external Auditor)
Working Conditions

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15) Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks/
concerns arising from assessments of health & safety practices and working conditions.
All safety related accidents are being investigated and learnings from investigation reports are shared across organization for
deployment of corrective actions to stop recurrence of such incidents. Effectiveness of Corrective actions deployment being
checked during safety Audits.
Leadership Indicators
1) Does the entity extend any life insurance or any compensatory package in the event of death of -
(A) Employees (Y/N): Yes
(B) Workers (Y/N): Yes
2) Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value
chain partners.
The Bills of the contractor are cleared after ensuring remittance of statutory dues to the concerned authorities by verifying
deposit/remittance challans submitted along with the bills
3) Provide the number of employees / workers having suffered high consequence work related injury/ ill-health/ fatalities who
have been are rehabilitated:

Rehabilitated employees/workers placed in

Total no. of affected employees/ workers
employment or family members placed on employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees Nil Nil Nil Nil
Workers Nil 1 Nil 1

4) Does the entity provide transition assistance programs to facilitate continued employability and the management of career
endings resulting from retirement or termination of employment? (Yes/ No): No
5) Details on assessment of value chain partners:

% of value chain partners (by value of business done with such partners) that were
assessed
Health and safety practices Nil
Working Conditions Nil

6) Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments
of health and safety practices and working conditions of value chain partners.
a) ISO 45001 /OHSAS 18001 certification is mandatory for all Value chain partners involved with High-Risk jobs execution
with organization
b) Ensured 100% Safety Training of Workforce of Service providers by an approved Training Institute
c) Ensured periodic safety performance evaluation of Service providers.
d) Safety performance linked incentive schemes for service providers are being provided

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 PRINCIPLE 4:
Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1) Describe the processes for identifying key stakeholder groups of the entity.
BDL identifies its stakeholder groups through the Stakeholder Engagement and Materiality Assessment process. The company
has robust system for identification of key stakeholders and it is an ongoing process, where the Company interacts with its
stakeholders at different levels to understand and address their expectations and collaborates with them for creating shared
value.
2) List of stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Channels of
Whether Frequency of
communication (Email,
identified as engagement
SMS, Newspaper, Purpose and scope of engagement including
Stakeholder Vulnerable & (Annually/ Half
Pamphlets, Advertisement, key topics and concerns raised during such
Group Marginalized yearly/ Quarterly
Community Meetings, engagement
Group (Yes/ / others –please
Notice Board, Website),
No) specify)
Other
Stakeholders No Meetings, emails, Annually To redress the grievances of the investors/
relationship newspaper advertisement, shareholders and to review measures for effective
committee website, Annual Reports exercise of voting rights by shareholders
Employees No E-newsletter Monthly, weekly, Information on Company activities
occasionally and
fortnightly
Customers No Email, Letters, Meeting Monthly To understand product requirements and also
sorting out technical and logistics issues
Vendors/Suppliers No Website, Emails, Annually and To increase the vendor base and also address
Newspaper Advertisements against specific the grievances in tendering process. Tenders are
tenders hosted in website for vendors participation
Industry bodies, No Email, letters, Meetings As and when Ensure compliances to all local laws
Regulators required
Safety Committee No Emails & Notice Board As and when To address safety issues in the Company from time
required to time, ensure proper working conditions and to
create safety awareness among the employees
Works Committee No Emails & Notice Board As and when Matters connected to issue of uniform, overcoats,
required shoes etc, amenities such as drinking water,
crèche, Rest rooms etc
Welfare No Emails & Notice Board As and when conducting recreational and cultural activities
Committee required annually, social and educational awareness
programmes, etc. Arrange outdoor and indoor
games

Leadership Indicators
1) Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics
or if consultation is delegated, how is feedback from such consultations provided to the Board.
The below board level CSR & SD committee will have regular interactions with the stakeholders on the economic, environmental
and social topics as a part of CSR activities of the Company. The same will be apprised to the CSR & SD Committee of the Board
and to the Board in their respective meetings.
2) Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.
No
3) Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups. Not Applicable

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PRINCIPLE 5:
Businesses should respect and promote human rights
Essential Indicators
1) Employees and workers who have been provided training on human rights issues and policy(ies) of the entity:
FY 2022-23 FY 2021-22
Category No. of employees No. of employees
Total (A) % (B / A) Total (C) % (D / C)
workers covered (B) workers covered (D)
Employees
Permanent
Other than permanent NIL
Total Employees
Workers
Permanent
Other than permanent NIL
Total Workers

2) Details of minimum wages paid to employees and workers:

FY 2022-23 FY 2021-22
Equal to Minimum More than Equal to Minimum More than
Category Total Total
Wage Minimum Wage Wage Minimum Wage
(A) (D)
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E /D) No. (F) % (F/D)
Employees
Permanent 807 - - 807 100% 824 - - 824 100%
Male 704 - - 704 100% 724 - - 724 100%
Female 103 - - 103 100% 100 - - 100 100%
Other than permanent 255 - - 255 100% 166 - - 166 100%
Male 212 - - 212 100% 146 - - 146 100%
Female 43 - - 43 100% 20 - - 20 100%
Workers - - - - - - - - - 100%
Permanent 1742 - - 1742 100% 1838 - - 1838 100%
Male 1556 - - 1556 100% 1647 - - 1647 100%
Female 186 - - 186 100% 191 - - 191 -
Other than permanent 1465 1465 100% - - 1433 1433 100% - -
Male 1165 1165 100% - - 1186 1186 100% - -
Female 300 300 100% - - 247 247 100% - -
3) Details of remuneration/salary/wage:
Male Female
Median remuneration/ Median remuneration/
Number salary/ wages of respective Number salary/ wages of
category respective category
Board of Directors (BoD) 5 6469275 0 0
Key Managerial Personnel 1 2657465 0 0
Employees other than BoD and KMP 830 1689481 110 1573974.5
Workers 1811 961125 209 859185
4) Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business?
Yes, Head (HR) of BDL will be addressing these issues

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5) Describe the internal mechanisms in place to redress grievances related to human rights issues.
No separate mechanism exists in the Company for redressal of Human Rights Issues. However, there exists Grievance Redressal
Procedure for resolving employees’ grievances on service related matters. The Human Rights Policy elaborated on the grievance
mechanism.
6) Number of Complaints on the Sexual Harassment, Discrimination at workplace, Child Labour, Forced Labour/Involuntary
Labour, Wages and Other human rights related issues made by employees and workers:
Nil
7) Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
It is ensured that no work related adverse consequences are meted out to the Complainant by placing the Complainant &
Respondent in different work places, in case both were in the same work place. Moreover, the Complainant is encouraged to
report any such incidences to the higher authorities for appropriate action
8) Do human rights requirements form part of your business agreements and contracts?
No
9) Assessments for the year:
% of your plants and offices that were assessed (by entity or
statutory authorities or third parties)
Child labour
Forced/Involuntary labour
Sexual Harassment
NIL
Discrimination at workplace
Wages
Others-please specify

10) Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments
at Question 9 above:
Not Applicable
Leadership Indicators
1) Details of a business process being modified/introduced as a result of addressing human rights grievances/complaints.
Not Applicable
2) Details of the scope and coverage of any Human rights due-diligence conducted.
Not Applicable
3) Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons
with Disabilities Act, 2016?
Yes
4) Details on assessment of value chain partners:
% of value chain partners (by value of business done with
such partners) that were assessed
Child labour
Forced/Involuntary labour
Sexual Harassment
NIL
Discrimination at workplace
Wages
Others-please specify
5) Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments
at above. NIL

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PRINCIPLE 6:
Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1) Details of total energy consumption (in Joules or multiples) and energy intensity:

Parameter FY 2022-23 FY 2021-22

Total electricity consumption (A) 79631 Giga Joules 77916 Giga Joules
Total fuel consumption (B) 0.00057 Giga Joules 0.00059 Giga Joules
Energy consumption through other sources (C) 31854 Giga Joules 40514 Giga Joules
Total energy consumption (A+B+C) 111485 Giga Joules 118430 Giga Joules
Energy intensity per rupee of turnover (Total energy consumption/ 4.53 Giga Joule/Rupee 4.20 Giga Joule/Rupee
turnover in rupees)
Energy intensity (optional) – the relevant metric may be selected by the
entity
2) Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been
achieved. In case targets have not been achieved, provide the remedial action taken, if any.

PAT Cycle II Notified Achieved

Divisions Remedial Action in case target not achieved
Target (Kcal/kwh) (Kcal/kwh)
Mundra 2,256 2,257 Unit 30 & 50 HP Heaters replacement along with
installation of Variable Frequency Drive in Condensate
Extraction pump variable was planned and commissioned.
Maithon 2,460 2,445 Better than Notified Target
Trombay (coal, oil and gas) 2,652 2,566 Better than Notified Target
Trombay (Gas) 2,006 2,047 This was not achieved due to lower Plant load factor
in view of low APM gas availability. This has been
taken up with BEE, however it was not considered for
normalization.
Jojobera 2,839 2,836 Better than Notified Target
3) Provide details of the following disclosures related to water:

Parameter FY 2022-23 FY 2021-22

Water withdrawal by source (in kilolitres)
(i) Surface water Nil Nil
(ii) Groundwater 642395 635511.63
(iii) Third party water Nil Nil
(iv) Seawater / desalinated water Nil Nil
(v) Others
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 642395 635511.63
Total volume of water consumption (in kilolitres) 588192 561105.47
Water intensity per rupee of turnover (Water consumed / turnover) 2.39 1.99
Water intensity (optional) – the relevant metric may be selected by the entity
4) Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.
Yes, BDL has implemented Zero Liquid Discharge system. Total treated water through effluent treatment plant is again treated
in RO. The RO treated water is also fed to DM (Demineralized Water) plant for producing DM Water. DM Water is utilized
in Electroplating Shop, CNC machines and flow forming machines in Work Shops of BDL. Total treated water from sewage
treatment plant is also utilized for gardening purpose inside the premises.

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5) Details of air emissions (other than GHG emissions) by the entity:

Parameter Please specify unit FY 2022-23 FY 2021-22

NOx µg/m3 11.6-19.3 14.2-26.0
SOx µg/m3 7.5-17.2 10.6-18.3
Particulate matter (PM) 54.2-73.8 56-69.6
Persistent Organic pollutants (POP) Nil Nil
Volatile organic compounds (VOC) Nil Nil
Hazardous air pollutants (HAP) Nil Nil
Others –please specify µg/m3 14.3-30.2 18-31

6) Details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity:

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, Metric tonnes of CO2 Nil Nil
HFCs, PFCs, SF6, NF3, if available) equivalent
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, Metric tonnes of CO2 Nil Nil
HFCs, PFCs, SF6, NF3, if available) equivalent
Total Scope 1 and Scope 2 emissions per rupee of turnover Nil Nil
Total Scope 1 and Scope 2 emission intensity (optional) – the relevant Nil Nil
metric may be selected by the entity

7) Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
Yes, towards sustenance and conservation of resources initially, 100 KW roof top solar photo voltaic plants have been installed
over the canteen and D&E Building Roofs. Afterwards, BDL has installed 5 MW solar panels each at Bhanur & Ibrahimpatnam
Units to reduce greenhouse gas emissions.
8) Details related to waste management by the entity:

Parameter FY 2022-23 FY 2021-22

Total Waste generated (in metric tonnes)
Plastic waste (A) 4.0 T 1.2 T
E-waste (B) 3T 0.79 T
Bio-medical waste (C) 264.55 Kg 231.48 Kg
Construction and demolition waste (D) Nil Nil
Battery waste (E) 2.5 T (Thermal Batteries) 8.066 T (Thermal Batteries)
Radioactive waste (F) Nil Nil
Other Hazardous waste. Please specify, Waste Coolant Oil: 6.72 KL, Waste Coolant Oil: 12.58 KL,
if any. (G) Empty Chemical Carboys: 7.44 T, Waste Oil:4.735 KL,
Paint Waste water : 0.315 KL, RO Reject : 10 KL,
Paint Sludge: 0.03 T, Life expired chemicals & ingredients:3.255 T,
ETP Sludge: 1.053 T, ETP Sludge: 1.1 T
Mercury Tubelights: 2.367 T

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Parameter FY 2022-23 FY 2021-22

Other Non-hazardous waste generated Damaged M.S. barrels: 7.7 T, M.S. Turning & Boring Scrap: 29.125 T,
(H). M.S. Turning & Boring Scrap: 10 T, DG Sets: 2 Nos.,
Please specify, if any. Aluminium Scrap: 10 T, Wooden Scrap: 121.285 T,
(Break-up by composition i.e. by Condemned Vehicles : 12 nos., LP Air Compressor: 7 Nos.,
materials relevant to the sector) Condemned Vibration System and Condemned Oven: 3 Nos.,
Oven: 6 Nos. Used Scrapped Canteen Item:1 Set
Turning Machine: 1 No.,
Mixed Aluminium and MS Turning, Boring
Scrap and Chips: 20 T,
Aluminium Scrap: 10 T,
Tyres: 266 Nos.,
Tubes: 194 Nos.
Transformers : 2 nos.
Total (A+B + C + D + E + F + G + H)
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in
metric tonnes)
Category of waste
(i) Recycled 65.82 KL from RO 181.54 KL from RO
(ii) Re-used Nil Nil
(iii) Other recovery operations Nil Nil
Total 65.82 KL 181.54 KL
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration Nil Nil
(ii) Landfilling Nil Nil
(iii) Other disposal operations
Total Nil Nil

9) Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to
manage such wastes.
Food waste is being disposed by means of animal feeding. The biomedical waste is being disposed through the agency registered
with the Pollution Control Board on alternate working days. The lead acid batteries are given to the authorized recyclers/dealers
on buy back basis as and when required. Metal scrap is being disposed through M/s MSTC. All hazardous waste and e-waste are
disposed through the agency registered by Pollution Control Board. Effluent generated from electroplating processes is treated
in effluent treatment plan and later again it is treated in reverse system. RO output is utilized in the form of demineralized water
inside the premises. Sewage is treated in sewage treatment plant. the treated water from sewage treatment plant is used for
gardening purpose. The hazardous and toxic chemicals are stored securely at identified place and waste toxic chemicals are
disposed after accumulation of sufficient quantity. Continuous monitoring of effluent thereby reducing the generation of ETP/
Paint sludge from the electroplating section. Because of automated machines, the solid waste such as metals and non-metals are
being reduced from the process. PAC (Coagulants) is being used in final treated effluent resulted into minimizing the hazardous
waste i.e. ETP sludge
10) If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals /
clearances are required, please specify details in the following format:

Whether the conditions of environmental approval / clearance

Location of
Sl. No. Type of operations are being complied with? (Y/N) If no, the reasons thereof and
operations/offices
corrective action taken, if any.
NA NA NA

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11) Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current
financial year:
NIL
12) Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention
and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder
(Y/N). If not, provide details of all such non-compliances.
Not Applicable as BDL is 100% compliant.
Leadership Indicators
1) Break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources:

Parameter FY 2022-23 FY 2021-22

From renewable sources
Total electricity consumption (A) Nil Nil
Total fuel consumption (B) Nil Nil
Energy consumption through other sources (C) 31854 Giga Joules 40514 Giga Joule
Total energy consumed from renewable sources (A+B+C) 31854 Giga Joules 40514 Giga Joule
From non-renewable sources
Total electricity consumption (D) 79631 Giga Joules 77916 Giga Joules
Total fuel consumption (E) 0.00057 Giga Joules 0.00059 Giga Joules
Energy consumption through other sources (F)
Total energy consumed from non-renewable sources (D+E+F) 79631 Giga Joules 77916 Giga Joules

2) Details related to water discharged:

Parameter FY 2022-23 FY 2021-22

Water discharge by destination and level of treatment (in kiloliters)
(i) To Surface water Nil Nil
No treatment
With treatment – please specify level of treatment
(ii) To Groundwater Nil Nil
No treatment
With treatment – please specify level of treatment
(iii) To Seawater Nil Nil
No treatment
With treatment – please specify level of treatment

(iv) Sent to third-parties

No treatment Nil 10 KL
With treatment – please specify level of treatment
(v) Others
No treatment
With treatment – please specify level of treatment 150677 KL 147941 KL
Total water discharged (in kiloliters) The above water treated and used for gardening
purpose and recycled back into system

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3) Water withdrawal, consumption and discharge in areas of water stress (in kiloliters): For each facility / plant located in areas
of water stress:
Name of the area – Kanchanbagh, Bhanur and Visakhapatnam Units
Nature of operations – Manufacturing and Supply of Defence Products
Water Stress Classification: NA

Parameter FY 2022-23 FY 2021-22

Water withdrawal by source (in kiloliters)

(i) Surface water Nil Nil
(ii) Groundwater 642395 635511.63
(iii) Third party water Nil Nil
(iv) Seawater / desalinated water Nil Nil
(v) Others Nil Nil
Total volume of water withdrawal (in kiloliters) 642395 635511.63
Total volume of water consumption (in kiloliters) 588192 561105.47
Water intensity per rupee of turnover (Water consumed / turnover) 2.39 KL/Rupee 1.99 KL/Rupee
Water intensity (optional) – the relevant metric may be selected by the entity

Water discharge by destination and level of treatment (in kiloliters)

Parameter FY 2022-23 FY 2021-22

(i) Into Surface water Nil Nil
No treatment
With treatment – please specify level of treatment
(ii) Into Groundwater Nil Nil

No treatment
With treatment – please specify level of treatment
(iii) Into Seawater Nil Nil

No treatment
With treatment – please specify level of treatment
(iv) Sent to third-parties

No treatment 10 KL Nil
With treatment – please specify level of treatment
(v) Others
No treatment
With treatment –please specify level of treatment 150677 KL 147941 KL
The above water treated and used for gardening
Total water discharged (in kiloliters)
purpose and recycled back into system

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4) Details of total Scope 3 emissions & its intensity:

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, Metric tonnes of Nil Nil
HFCs, PFCs, SF6, NF3, if available) CO2 equivalent
Total Scope 3 emissions per rupee of turnover Nil Nil
Total Scope 3 emission intensity (optional) – the relevant metric may be Nil Nil
selected by the entity

5) With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details
of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities.
Nil
6) If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency,
or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as
outcome of such initiatives:

Details of the initiative (Web-link, if

S. No Initiative undertaken Outcome of the initiative
any, may be provided along-with summary)
1 Installed RO System RO installed at ETP Outlet to utilise the treated Water is recycled back to system in the
water in the system form of water and DM water which is
required for CNC machines.
2 Installed Venturi Venturi Scrubber installed to control air emission Controlled air emission
Scrubber generated due to electroplating operations.
7) Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Bharat Dynamics Limited is having disaster management plan which cover major disasters such as spillage of chemicals, floods,
stage hostage situations, earthquake, cyclone, biological, countering cyber attacks. The disasters are emphasizing on objective,
prevention and emergency plan. The roles and responsibilities have been assigned in the event of disaster. BDL has also taken
into account process hazards such as plant maintenance (corrosion, failure of control equipment, structure collapse, failure of
fume extraction, Lightning and its Control Methods, Safety Measures at EP Shop and Explosive building, waste disposal and
sabotage), storage and transportation and their control methods. The hazards division are categorised from 1.1 to 1.4 and Fire
divisions are also categorised from 1 to 4 including their firefighting actions.
8) Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.
Nil
9) Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts. Not Applicable

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PRINCIPLE 7
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent:
Essential Indicators
1) a) Number of affiliations with trade and industry chambers/ associations: Five
b) List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity
is a member of/ affiliated to.

Reach of trade and industry chambers/

S. No. Name of the trade and industry chambers/ associations
associations (State/National)
1 Society of Indian Defence Manufacturers (SIDM) National
2 Hyderabad Management Association (HMA) State
3 Society of Defence Technologists (SODET) National
4 Standing Conference of Public Enterprises (SCOPE) National
5 Confederation of Indian Industry (CII) National
2) Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based
on adverse orders from regulatory authorities.
There is no action taken or underway against the BDL on any issues related to anti-competitive conduct.
Leadership Indicators
Details of public policy positions advocated by the entity: Nil

PRINCIPLE 8
Businesses should promote inclusive growth and equitable development:
Essential Indicators
1) Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.
As per applicable laws, SIA is not applicable for any of the projects undertaken by the Company. However, the Company assesses
the effectiveness of all projects undertaken voluntarily as a part of BDL way of giving back to society.
2) Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity:
Not Applicable, since there are no such projects undertaken by the Company
3) Describe the mechanisms to receive and redress grievances of the community.
Complaint can be received through Public Grievance Portal (PG Portal).
4) Percentage of inputs directly sourced from MSMEs / small producers

FY 2022-23 FY 2021-22
Directly sourced from MSMEs/ small 29.82% 29.72%
producers (worth about ₹487.98 crore, out of its (worth about ₹522.99 crore, out of its
total procurement of ₹1636.61 crore) total procurement of ₹1759.52 crore)
Sourced directly from within the 33% 60%
district and neighbouring districts
Leadership Indicators
1) Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference:
Question 1 of Essential Indicators above): Not Applicable

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2) Information on CSR projects undertaken by your entity in designated aspirational districts as identified by government
bodies:

S. No. State Aspirational District Amount spent (In INR)

1 Mid-Day Meal Visakhapatnam, Andhra Pradesh 53.82 Lakhs
2 Smart Class Rooms Vizianagaram, Andhra Pradesh 120.00 Lakhs
3 Dokra Craft Dev Project Asifabad, Telangana 14.40 Lakhs
4 Terracotta Draft Dev Project Asifabad, Telangana 12.00 Lakhs
5 Dual Desks Bhadradri Kothagudem, Telangana 32.72 Lakhs
6 Distribution of Artificial Limbs Asifabad, Telangana 12.50 Lakhs
3) a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized
/vulnerable groups? Yes
b) What percentage of total procurement (by value) does it constitute?
BDL has policies and guidelines in place for vendor enlistment and ordering to encourage and provide growth opportunities to
entrepreneurs among the marginalized /vulnerable groups or communities. The percentage of total procurement (by value) from
SC/ST Entrepreneurs and Women Entrepreneurs for the year 2022-23 and 2021-22 is as follows

[Link] Particulars FY 2022-23 FY 2021-22

1 % Procurement from SC/ST Entrepreneurs 1.16% 0.66%
2 % Procurement from Women Entrepreneurs 1.35% 0.88%

4) Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current
financial year), based on traditional knowledge: Nil
5) Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein
usage of traditional knowledge is involved. Not applicable
6) Details of beneficiaries of CSR Projects:

No. of persons benefitted % of beneficiaries from vulnerable and

S. No. CSR Project
from CSR Projects marginalized groups
1 Mid-Day Meal 5000 Majority beneficiaries are from BPL
2 Smart Class Rooms 9000 Majority beneficiaries are from BPL
3 Dokra Craft Dev Project 160 Majority beneficiaries are from BPL/ST
4 Terracotta Draft Dev Project 80 Majority beneficiaries are from BPL/ST
5 Dual Desks 3000 Majority beneficiaries are from BPL
6 Distribution of Artificial Limbs 200 Majority beneficiaries are from BPL/ST/SC/OBC

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PRINCIPLE 9:
Businesses should engage with and provide value to their consumers in a responsible manner:
Essential Indicators
1) Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Defence forces have a well-established, structured and periodic meetings for raising issues. Same is being followed and compiled
by the Company. These documents are treated as confidential by Defence forces.
2) Turnover of products and/services as a percentage of turnover from all products/service that carry information about:

As a percentage to total turnover

Environmental and social The main products of the company are Missiles, Underwater Weapons and allied Defence
parameters relevant to the product Equipments for use in strategic/national security applications. Hence, not applicable
Safe and responsible usage 100%
Recycling and/or safe disposal The main products of the company are Missiles, Underwater Weapons and allied
Defence Equipments for use in strategic/national security applications. Further these
items cannot be recycled or reused. Hence, not applicable

3) Number of consumer complaints in respect of the Data privacy, Advertising, Cyder-security, Delivery of essential services,
Restrictive Trade Practices, Unfair Trade Practices, other: Nil
4) Details of instances of product recalls on account of safety issues: NIL
5) Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a
web-link of the policy. Yes, the web-link is [Link]
6) Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken
by regulatory authorities on safety of products / services.
BDL’s customers being the defence forces, the information is confidential.
Leadership Indicators
1) Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).
On BDL official website [Link]
2) Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.:
The main products of the company are Missiles, Underwater Weapons and allied Defence Equipments for use in strategic/
national security applications. Hence not applicable.
3) Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
The main products of the company are Missiles, Underwater Weapons and allied Defence Equipments for use in strategic/
national security applications by Armed Forces. The company is having regular interactions with the customers (who are mostly
Indian Armed Forces) and hence they will be well informed in case of any disruption/discontinuation of essential services through
direct communication.
4) Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/ Not
Applicable): Not Applicable
Did your entity carry out any survey with regard to consumer satisfaction relating to the major products/services of the
entity, significant locations of operation of the entity or the entity as a whole? (Yes/No):
The main products of the company are Missiles, Underwater Weapons and allied Defence Equipments for use in strategic/
national security applications. Hence not applicable
5) Provide the following information relating to data breaches:
a) Number of instances of data breaches along-with impact: Not applicable as no data breaches occurred.
b) Percentage of data breaches involving personally identifiable information of customers Not applicable

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Ind AS
Financial Statements - 31 March 2023
Corporate information
Bharat Dynamics Limited (BDL), a Government of India Enterprise under the Ministry of Defence was established at Hyderabad in
the year 1970. It is engaged in the manufacturing of Missiles and allied Defence Equipments. The Company provides majority of its
goods and services to the Indian Armed forces and Government of India.
Contents:
Ind AS Financial Statements comprises:
(a) Balance Sheet
(b) Statement of Profit and Loss
(c) Statement of Changes in Equity
(d) Statement of Cash flows
(e) Notes, comprising a summary of significant Accounting policies and other explanatory information; and
(f) Comparative information in respect of the preceding period;
Reporting Entity:
Bharat Dynamics Limited (Government of India Enterprise) is a Listed Company limited by shares, incorporated and domiciled in India.
Registered Office :
Kanchanbagh, Hyderabad - 500058
Corporate Office :
Plot No. 38-39, TSFC Building,
Financial District, Nanakramguda
Hyderabad - -500032

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STANDALONE BALANCE SHEET

as at 31st March 2023
(₹ in Lakh)
As at As at
PARTICULARS Notes
March 31, 2023 March 31, 2022
ASSETS
(1) Non-current assets
(a) Property, Plant and Equipment 1 64,628.38 70,426.44
(b) Capital Work-in-Progress 2 7,434.66 4,073.18
(c) Investment Property 3 0.97 0.97
(d) Right of use assets 4 5,486.03 5,682.32
(e) Other Intangible Assets 5 10,738.30 11,274.90
(f) Financial Assets
(i) Investments 6 - -
(ii) Loans 7 173.86 203.69
(iii) Other Financial Assets 8 10,603.14 4,085.76
(g) Deferred Tax Assets (net) 29A 5,642.02 5,710.71
(h) Other Non-current Assets 9 2,521.52 2,606.53
Total Non - Current Assets 107,228.88 104,064.50
(2) Current Assets
(a) Inventories 10 182,243.75 165,445.13
(b) Financial Assets
(i) Trade Receivables 11 18,457.27 30,416.13
(ii) Cash and Cash Equivalents 12 105,288.37 26,504.37
(iii) Bank balances other than (ii) above 13 280,598.00 163,449.00
(iv) Loans 14 202.16 183.74
(v) Other Financial Assets 15 132,411.77 129,162.31
(c) Current tax Assets 29B 11,948.87 2,912.05
(d) Other Current Assets 16 28,864.07 34,250.79
Total Current Assets 760,014.26 552,323.52
Total Assets 867,243.14 656,388.02
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 17 18,328.12 18,328.12
(b) Other Equity 18 302,821.65 284,727.62
Total Equity 321,149.77 303,055.74
LIABILITIES
(1) Non-current Liabilities
(a) Financial Liabilities
(i) Lease Liabilities 19 374.11 520.75
(ii) Other Financial Liabilities 20 4,557.47 4,106.16
(b) Provisions 21 37.00 4,465.64
(c) Other Non-current Liabilities 22 320,528.18 86,133.95
Total Non-current Liabilities 325,496.76 95,226.50
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings 23 - -
(ii) Lease Liabilities 24 146.64 131.96
(iii) Trade Payables
(A) total outstanding dues of micro enterprises and small enterprises; 25 4,276.06 3,996.37
(B) total outstanding dues of creditors other than micro enterprises 25 42,161.77 51,250.61
and small enterprises
(iv) Other Financial Liabilities 26 16,761.58 16,436.59
(b) Other Current Liabilities 27 122,078.82 155,359.65
(c) Provisions 28 35,171.74 30,930.60
(d) Current tax Liabilities, net 29B - -
Total Current Liabilities 220,596.61 258,105.78
Total Liabilities 546,093.37 353,332.28
Total Equity and Liabilities 867,243.14 656,388.02
Significant Accounting Policies and accompanying Notes form an integral part of the Financial Statements
As per our report of even date.
For G Natesan & Co., For and on behalf of the Board
Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

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DYNAMICS LIMITED 133
Statement of Profit and Loss
for the Year ended 31st March 2023
(₹ in Lakh)

For the year ended For the year ended

PARTICULARS Notes
March 31, 2023 March 31, 2022
INCOME
I Revenue from Operations 30 248,939.25 281,740.28
II Other Income 31 15,540.22 11,121.04
III Total Income (I + II) 264,479.47 292,861.32
IV EXPENSES
Cost of materials consumed 32 121,033.46 126,336.55
Changes in inventories of finished goods and work-in-progress 33 (1,903.72) (8,435.58)
Employee benefits expense 34 53,246.43 57,066.27
Finance costs 35 453.64 342.43
Depreciation and amortisation expense 36 7,725.79 9,035.47
Other expenses 37 35,743.52 34,166.36
Total expenses (IV) 216,299.12 218,511.50
V Profit/ (Loss) before exceptional items and tax (III-IV) 48,180.35 74,349.82
VI Exceptional Items
Impairment Loss 38(1) - (3,358.57)
VII Profit before tax (V + VI) 48,180.35 70,991.25
VIII Tax expense
(1) Current tax 29C 12,775.36 21,653.56
(2) Deferred tax 29C 187.50 (654.75)
Total Tax expense 12,962.86 20,998.81
IX Profit/ (Loss) for the year (VII - VIII) 35,217.49 49,992.44
X Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
(a) Remeasurement of the defined benefit plans 38(3) 240.20 (1,123.26)
(b) Income tax relating to items that will not be reclassified to profit or loss 29C (60.45) 282.70
Total other comprehensive income 179.75 (840.56)
XI Total comprehensive income for the year (IX + X) 35,397.24 49,151.88
XII Earnings per equity share
Basic and diluted EPS (in Rupees) 38(2) 19.22 27.28

Significant Accounting Policies and accompanying Notes form an integral part of the Financial Statements

For G Natesan & Co., For and on behalf of the Board

Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

134 BHARAT
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Statement of changes in equity

for the year ended March 31, 2023
A. Equity Share Capital (₹ in Lakh)
Changes in Equity Share Capital Restated Balance as at Changes in equity share Balance as at March 31,
Balance as at April 1, 2022
due to prior period errors April 1, 2022 capital during the year 2023
18328.12 - 18328.12 - 18328.12

Changes in Equity Share Capital Restated Balance as at Changes in equity share Balance as at March 31,
Balance as at April 1, 2021
due to prior period errors April 1, 2021 capital during the year 2022
18328.12 - 18328.12 - 18328.12

B. Other Equity (₹ in Lakh)

Reserves and Surplus

Other Comprehensive
Particulars Income - Total
Retained
General Reserve Remeasurement of
Earnings
the defined benefit
plans
Balance as at April 1, 2022 2,88,135.54 2,664.68 (6,072.60) 2,84,727.62
Changes in Accounting Policy - (532.98) - (532.98)
Restated balance as at April 1, 2022 2,88,135.54 2,131.70 (6,072.60) 2,84,194.64
Profit for the year - 35,217.49 - 35,217.49
Other comprehensive income for the year (net of tax) - - 179.75 179.75
Final dividend - (1,832.81) - (1,832.81)
Transfer from Statement of Profit and Loss 15,000.00 - - 15,000.00
Transfer to General Reserve - (15,000.00) - (15,000.00)
Interim Dividend - (14,937.42) - (14,937.42)
Balance as at March 31, 2023 3,03,135.54 5,578.96 (5,892.85) 3,02,821.65

Reserves and Surplus

Other Comprehensive
Particulars Income - Total
Retained
General Reserve Remeasurement of
Earnings
the defined benefit
plans
Balance as at April 1, 2021 2,48,135.54 7,243.10 (5,232.04) 2,50,146.60
Profit for the year - 49,992.44 49,992.44
Other comprehensive income for the year (net of tax) - (840.56) (840.56)
Final dividend - (1,191.33) (1,191.33)
Transfer to Capital Redemption Reserve - - -
Transfer from Statement of Profit and Loss 40,000.00 - 40,000.00
Transfer to General Reserve - (40,000.00) (40,000.00)
Interim Dividend - (13,379.53) (13,379.53)
Balance as at March 31, 2022 2,88,135.54 2,664.68 (6,072.60) 2,84,727.62

For G Natesan & Co., For and on behalf of the Board

Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

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BHARAT
DYNAMICS LIMITED 135
Cash flow statement
for the year ended March 31, 2023
(₹ in Lakh)
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit before exceptional items and tax 48,180.35 74,349.82
Adjustments for :
Depreciation and amortisation expense 7,725.79 9,035.47
Finance costs 453.64 342.43
Interest income (11,176.17) (6,375.16)
Profit on Sale of Property Plant and Equipment (10.06) 0.90
Deferred revenue on customer provided Assets (1,021.06) (2,654.32)
Provisions for expenses 2,622.19 10,484.95
Liabilities / provisions no longer required written back (959.93) (2,365.08)
Fair value adjustment to investment carried at fair value through profit and loss (130.24) 317.58
Gain on sale of Financial Assets Measured at Fair value through profit and loss - -
Operating profit before working capital changes 45,684.51 83,136.59
Changes in working capital:
Adjustments for (increase) / decrease in operating Assets:
Trade receivables 11,958.86 1,853.13
Loans 11.41 61.40
Other Financial Assets (9,586.05) (6,965.39)
Inventories (17,951.00) (26,141.20)
Other Assets 5,332.72 1,568.74
Adjustments for increase / (decrease) in operating Liabilities:
Trade payables (8,809.15) (19,013.13)
Other Financial Liabilities 1,736.23 2,689.95
Other Liabilities 2,07,955.51 36,404.12
Provisions (1,495.68) (285.96)
Cash generated from operations 2,34,837.36 73,308.25
Net income tax paid (21,812.18) (20,342.35)
Net cash flow before exceptional items 2,13,025.18 52,965.90
Exceptional items - -
Net cash from/ (used) in operating activities (A) 2,13,025.18 52,965.90
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property Plant & Equipment and Intangible Assets (10,825.71) (10,204.42)
Bank Deposits (1,17,149.00) (53,045.20)
Proceeds from sale of Property Plant & Equipment and Intangible Assets 19.36 0.45
Interest received 10,852.42 5,947.93
Net cash from/ (used) in investing activities (B) (1,17,102.93) (57,301.25)
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of equity shares - -
Finance costs (314.63) (203.41)
Repayment of lease liabilities (131.96) (118.48)
Dividends paid (16,691.66) (14,530.06)
Net cash from/ (used) in financing activities (C) (17,138.25) (14,851.95)
Net Increase / (decrease) in Cash and Cash Equivalents (A+B+C) 78,784.00 (19,187.30)
Cash and Cash equivalents at the beginning of the year 26,504.37 45,691.67
Cash and Cash equivalents at the end of the year (Refer Note (i) below) 1,05,288.37 26,504.37
Note (i):
Cash and Cash equivalents Comprises:
in current accounts 77,204.89 3,055.17
in deposit accounts 28,076.92 23,448.78
Cash on hand 6.56 0.42
Bank overdraft - -
1,05,288.37 26,504.37

For G Natesan & Co., For and on behalf of the Board

Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

136 BHARAT
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ACCOUNTING POLICIES
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1.1 Compliance with Ind AS:
The financial statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under Section
133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) rules, 2015], as amended from time
to time and other relevant provisions of the Act.
1.2 Historical cost convention:
The financial statements are prepared under historical cost basis, except for the following:
certain financial assets and liabilities (including derivative instruments) and contingent consideration that is measured at fair
value;
defined benefit plans – plan assets measured at fair value
1.3 Use of estimates:
The preparation of financial statements in conformity with accounting principles generally accepted in India requires
management, where necessary, to make estimates and assumptions that affect the reported amounts of assets and
liabilities,disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised.
2. FOREIGN CURRENCY TRANSLATION
2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (‘the functional currency’). The financial statements are presented in Indian
rupee (INR), which is Bharat Dynamics Limited’s functional and presentation currency.
2.2 Transactions and Balances
i) Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of
the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are
recognized in profit and loss.
ii) Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are
reported as part of the fair value gain or loss.
iii) Liability for deferred payments (and receivable from Indian army and ordnance factory) including interest thereon, on
supplies/ services from the USSR (erstwhile) is set up at the rate of exchange notified by the Reserve Bank of India for
deferred payments including interest thereon under the protocol arrangements between the Government of India and
Government of Russia. The differences due to fluctuations in the rate of exchange are charged to revenue.
3. REVENUE RECOGNITION:
A. Revenue from Contract with Customers
(i) Revenue is recognized when (or as) the company satisfies a performance obligation.
(ii) Satisfaction of performance obligation over time
a. Revenue is recognised overtime where the transfer of control of goods or services take places over time by measuring
the progress towards complete satisfaction of that performance obligation, if one of the following criteria is met:

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DYNAMICS LIMITED 137
 • the company’s performance entitles the customer to receive and consume the benefits simultaneously as the
company performs
• the company’s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced
• the company’s performance does not create an asset with an alternative use to the company and the company
has an enforceable right to payment including a reasonable profit margin for performance completed to date.
b. Progress made towards satisfying a performance obligation is assessed based on Input Method on the ratio of actual
costs incurred on the contract up to the reporting date to the estimated total costs expected to complete the contract.
If the outcome of the performance obligation cannot be estimated reliably and where it is probable that the costs will
be recovered, revenue is recognised to the extent of costs incurred.
c. In case of AMC contracts, where passage of time is the criteria for satisfaction of performance obligation, revenue is
recognised using the output method.
(iii) Satisfaction of performance obligation at a point in time
a. In respect of cases where the transfer of control does not take place over time, the company recognises the revenue
at a point in time when it satisfies the performance obligations.
b. The performance obligation is satisfied when the customer obtains control of the asset. The indicators for transfer of
control include the following:
• the company has transferred physical possession of the asset
• the customer has legal title to the asset
• the customer has accepted the asset
• when the company has a present right to payment for the asset
• The customer has the significant risks and rewards of ownership of the asset. The transfer of significant risks and
rewards ownership is assessed based on the Incoterms of the contracts.
Ex-Works contract – In case of Ex-works contract, revenue is recognised when the specified goods are unconditionally
appropriated to the contract after prior Inspection and acceptance, if required.
FOR Contracts – In the case of FOR contracts, revenue is recognised when the goods are handed over to the carrier for
transmission to the buyer after prior inspection and acceptance, if stipulated, and in the case of FOR destination contracts,
if there is a reasonable expectation of the goods reaching destination within the accounting period.
Bill and hold Sales:
Bill and hold sales is recognised when all the following criteria are met:
• the reason for the bill and hold sales is substantive
• the product is identified separately as belonging to the customer
• the product is currently ready for physical transfer to the customer
• the company does not have the ability to use the product or to direct it to another customer
(iv) Measurement
a. Revenue is recognized at the amount of the transaction price that is allocated to the performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring promised goods or services to a customer, excluding amount collected on behalf of third parties and net
of estimated liquidated damages.
Exchange rate variation and any other additional consideration is recognised based on contractual terms of the
contract.
b. The company’s obligation to replace or repair faulty goods under the standard warranty terms is recognized as a
provision and is not adjusted against transaction price as the customer does not have option to purchase warranty
seperately.

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c. In case where the contracts involve multiple performance obligations, the company allocates the transaction price to
each performance obligation on the relative stand-alone selling price basis.
Bundled Contracts - In case of a Bundled contract, where separate fee for installation and commissioning or any
other separately identifiable component is not stipulated, the Company applies the recognition criteria to separately
identifiable components (sale of goods and installation and commissioning, etc.) of the transaction and allocates the
revenue to those separate components based on stand-alone selling price.
Multiple Elements - In cases where the installation and commissioning or any other separately identifiable component
is stipulated and price for the same agreed separately, the Company applies the recognition criteria to separately
identified components (sale of goods and installation and commissioning, etc.) of the transaction and allocates the
revenue to those separate components based on their stand-alone selling price.
d. If the stand-alone selling price is not available the company estimates the stand alone selling price.
(v) Significant financing component
Advances received towards execution of Defence related projects are not considered for determining significant financing
component since the objective is to protect the interest of the contracting parties.
In respect of other contracts, the existence of significant financing component is reviewed on a case to case basis.
(vi) Customer financed assets:
The Customer Financed Assets (CFA) are those assets cost of which is funded by the customer, fully or in part. Customer
may or may not obtain control over the CFA. The funding by customer is recognised as revenue synchronising it in line with
completion of performance obligations in accordance with contractual terms. The expenditure incurred by the company is
recognised as per GAAP.
a. Where the company has obtained control over the assets funded by customer:
The assets financed by customer are recognised initially at fair value. The corresponding revenue in respect of a
contract is recognised to the extent of executed quantity in proportion to the existing order quantity plus additional
quantity, if any, for which orders are anticipated as on the date of receipt of the contract from customer.
b. Where the company has not obtained control over the assets funded by customer:
The expenditure incurred in respect of assets funded by the customer is initially recognised as inventory and revenue
is recognised on transfer of control of the asset
B. Other Income:
Recognition of other income is as follows
i) Interest income:
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference
to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on
initial recognition.
ii) Dividend:
Dividend income is recognized when the Company’s right to receive the payment is established.
4. GOVERNMENT GRANTS
4.1 Grants from the government are recognized at their fair value where there is reasonable assurance that grant will be
received and the Company will comply with all attached conditions.
4.2 Government grants relating to income are deferred and recognized in the profit and loss over the period necessary to match
them with the costs that they are intended to compensate and presented within other income.
4.3 Grants related to non-depreciable assets may also require the fulfilment of certain obligations and would then be recognised
in profit or loss over the periods that bear the cost of meeting the obligations.

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 4.4 Government Grants received either as subsidy or otherwise for acquisition of depreciable assets are accounted as deferred
income. If the grant/subsidy is absolute, amount corresponding to the depreciation is treated as income over the life of the
asset. If the grant/subsidy is attached with any conditions, such as repayment, income is accounted as per the terms of the
grant/subsidy.
5. INCOME TAX
5.1 The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rates adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses.
5.2 Current tax:
The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the end of the
reporting period in the countries where the Company operates and generates taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation.
It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
5.3 Deferred tax:
i) Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities
are not recognized if they arise from initial recognition of goodwill. Deferred income tax is also not accounted for if it
arises from the initial recognition of asset or liability in a transaction other than business combination that at the time
of the transaction affects neither accounting profit nor the taxable profit (tax loss). Deferred income tax is determined
using the tax rates (and laws) that have been enacted or substantively enacted at the end of the reporting period and
are expected to apply when the related deferred income tax assets is realized or the deferred income tax liability is
settled.
ii) Deferred tax assets are recognized for all deductible temporary differences and unused losses only if it is probable that
future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax asset is also
recognised for the indexation benefit on land available for taxation purpose since it results in a temporary difference.
iii) Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize
the liability simultaneously.
iv) Current and deferred tax is recognized in profit or loss, except to the extent that it relates to the items recognized in
other comprehensive income or directly equity. In this case, the tax is also recognized in other comprehensive income
or directly equity, respectively.
6. LEASES
6.1 Company as a lessee:
Contracts with third party, which give the company the right of use in respect of an Asset, are accounted in line with the
provisions of Ind AS 116 – “Leases” if the recognition criteria as specified in the Accounting standard are met.
Lease payments associated with short term lease (term of twelve months or less) and lease in respect of low value assets
are charged off as expenses on straight line basis over lease term or other systematic basis, as applicable.
At commencement date, the value of “right of use” is capitalised at the present value of outstanding lease payments plus
any initial direct cost and estimated cost, if any, of dismantling and removing the underlying asset.
Liability for lease is created for an amount equivalent to the present value of outstanding lease payments. Subsequent
measurement ,if any, is made using cost model.
Each lease payment is allocated between the liability created and finance cost. The finance cost is charged to the statement
of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the
liability for each period.

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The right of use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight line basis.
The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the
company’s incremental borrowing rate.
Lease modifications, if any, are accounted as a separate lease if the recognition criteria specified in the standard are met.
6.2 Company as a Lessor:
Lease are classified as finance or operating lease based on the recognition criteria specified in Ind AS 116 – Leases.
a) Finance Lease:
At commencement date, amount equivalent to the “net investment in the lease” is presented as a receivable. The
implicit interest rate is used to measure the value of the “net investment in Lease”
Each lease payment is allocated between the Receivable created and finance income. The finance income is recognised
in the statement of profit and loss over the lease period so as to reflect a constant periodic rate of return on the net
investment in lease.
The asset is tested for de-recognition and impairment requirements as per Ind AS 109- Financial Instruments.
Lease modifications, if any, are accounted as a separate lease if the recognition criteria specified in the standard are
met.
b) Operating lease:
The company recognises lease payments from operating leases as income on either a straight line basis or another
systematic basis, if required.
Lease modifications, if any, are accounted as a separate lease if the recognition criteria specified in the standard are
met.
A lease is classified at the inception date as a finance lease or operating lease.
7. INVENTORIES
7.1 Inventories are valued at lower of cost and net realizable [Link] cost of raw material,components and stores are assigned
by using the actual weighted average cost formula and those in transit at cost to [Link] the case of stock-in-trade and
work-in-progress,cost includes material,labour and related production overheads.
7.2 Stationery, uniforms, welfare consumables, medical and canteen stores are charged off to revenue at the time of receipt.
7.3 Raw-materials, Components, Construction Materials, Loose Tools and Stores and Spare Parts declared surplus/ unserviceable/
redundant are charged to revenue.
7.4 Provision for redundancy is made in respect of closing inventory of Raw materials and Components, Work in progress,
Finished Goods, Stores and spare parts, Loose tools and Construction Materials non-moving for more than 5 years. Besides,
where necessary, adequate provision is made for redundancy of such inventory in respect of completed/ specific projects
and other surplus/ redundant materials pending transfer to salvage stores.
8. FINANCIALINSTRUMENTS
8.1 Financial Assets:
All financial assets are recognised on trade date when the purchase of a financial asset is under a contract whose term
requires delivery of the financial asset within the timeframe established by the market concerned. Financial assets are
initially measured at fair value, plus transaction costs, except for those financial assets which are classified as at fair value
through profit or loss (FVTPL) at inception. All recognised financial assets are subsequently measured in their entirety at
either amortized cost or fair value.
i) Classification of financial assets:
The Company classifies its financial assets in the following measurement categories:
o those to be measured subsequently at fair value (either through other comprehensive income, or through profit
or loss), and

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 o those measured at amortised cost.
The classification depends on the entity’s business model for managing the financial assets and the contractual terms
of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in debt instruments, this will depend on the business model in which the investment is held.
For investments in equity instruments, this will depend on whether the Company has made an irrevocable election
at the time of initial recognition to account for the equity investment at fair value through other comprehensive
income. The Company reclassifies debt investments when and only when its business model for managing those assets
changes.
ii) Measurement:
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at
fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash
flows are solely payment of principal and interest.
a) Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the
asset and the cash flow characteristics of the asset. The Company classifies its debt instruments as:
(a)(i) Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship
is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in finance income using the effective interest rate method.
(a)(ii) Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual
cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments
of principal and interest, are measured at fair value through other comprehensive income (FVOCI).
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and
loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised in other gains/(losses). Interest income from these
financial assets is included in other income using the effective interest rate method.
(a)(iii) Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are
measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit
or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in
which it arises. Interest income from these financial assets is included in other income.
b) Equity instruments
(b)(i) The Company subsequently measures all equity investments at fair value. Where the Company’s management
has elected to present fair value gains and losses on equity investments in other comprehensive income,
there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from
such investments are recognised in profit or loss as other income when the Company’s right to receive
payments is established.
(b)(ii) Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/
(losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity
investments measured at FVOCI are not reported separately from other changes in fair value.
(iii) Impairment of financial assets:
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has
been a significant increase in credit risk.

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For trade receivables the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognised from initial recognition of the receivables.
Time barred dues from the government / government departments / government companies are generally not
considered as increase in credit risk of such financial asset.
(iv) Derecognition of financial assets
A financial asset is derecognized only when
- The Company has transferred the rights to receive cash flow from the financial asset or
- retains the contractual rights to receive the cash flows of the financial assets, but assumes a contractual obligation
to pay cash flows to one or more recipients
Where the company has transferred an asset, the Company evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such cases, the financial asset is derecognized.
Where the company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership
of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset.
Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of
continuing involvement in the financial asset.
v) Trade receivables:
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of
business. If collection is expect to be collected within a period of 12 months or less from the reporting date (or in the
normal operating cycle of the business if longer), they are classified as current assets otherwise as non-current assets.
Trade receivables are measured at their transaction price unless it contains a significant financing component in
accordance with Ind AS 18 (or when the entity applies the practical expedient) or pricing adjustments embedded in
the contract.
Loss allowance for expected life time credit loss is recognised on initial recognition.

8.2 Financial liabilities and equity instruments issued by the Company

Classification
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the
contractual arrangement.
i) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of
its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue
costs.
ii) Financial liabilities
Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest
expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments through the expected life of the financial liability, or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
iii) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company. Trade and other payables are
presented as current liabilities if payment is due within 12 months after the reporting period otherwise as non-current.
They are recognized initially at their fair value and subsequently measured at amortized cost using the effective
interest method.

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 iv) Derivatives
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently
re-measured to their fair value at the end of each reporting period. The derivatives that are not designated as hedges
are accounted for at fair value through profit and loss and are included in other gains/ (losses).
a) Embedded derivatives
Derivatives embedded in a host contract that is an asset within the scope of Ind AS 109 are not separated.
Financial Assets with embedded derivatives are considered in their entirety when determining whether their cash
flows are solely payment of principal and interest.
Derivatives embedded in all other host contract are separated only if economic characteristics and risks of the
embedded derivatives are not closely related to the economic characteristics and risks of the host contract and
are measured at fair value through profit and loss. Embedded derivatives closely related to the host contract are
not separated.
b) Embedded foreign currency derivatives
Embedded foreign currency derivatives are not separated from the host contract if they are closely related. Such
embedded derivatives are closely related to the host contract, if the host contract is not leveraged, does not
contain any option feature and requires payments in one of the following currencies:
- The functional currency of any substantial party to that contract,
- The currency in which the price of the related good or service that is acquired or delivered is routinely
denominated in commercial transactions around the world,
- A currency that is commonly used in contracts to purchase or sell non-financial items in the economic
environment in which the transaction takes place (i.e. relatively liquid and stable currency)
Foreign currency embedded derivatives which do not meet the above criteria are separated and the derivative is
accounted for at fair value through profit and loss.
8.3 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the
liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in
the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
9. CASH AND CASH EQUIVALENTS:
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held
at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts.
Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

10. FAIR VALUE MEASUREMENT

10.1 The Company measures certain financial instruments, such as derivatives and other items in its financial statements at fair
value at each balance sheet date.
10.2 All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within fair
value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities.
Level 2 – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. Derived from prices).
Level 3 – Inputs for the assets and liabilities that are not based on observable market data (unobservable inputs).
10.3 For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

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11. PROPERTY, PLANT AND EQUIPMENT

11.1 Measurement
i. Land is capitalised at cost to the Company. Development of land such as levelling, clearing and grading is capitalised
along with the cost of building in proportion to the land utilized for construction of buildings and rest of the
development expenditure is capitalised along with cost of land. Development expenditure incurred for the purpose
of landscaping or for any other purpose not connected with construction of any building is treated as cost of land.
ii. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical costs
includes expenditure that is directly attributable to the acquisition of items.
iii. Subsequent costs are included in the asset’s carrying amount and recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of the component accounted for as a separate asset
is derecognized when replaced. All other repairs and maintenance are charged to profit and loss during the reporting
period in which they are incurred.
iv. Where the cost of a part of the asset is significant to the total cost of the asset and useful life of that significant part
is different from the useful life of the remaining asset, useful life of that significant part is determined separately and
the significant part is depreciated on straight line method over its estimated useful life.
11.2 Depreciation method, estimated useful life and residual value:
i. Depreciation is calculated using the straight line method to allocate their cost, net of residual values, over the
estimated useful life.
ii. The useful lives have been determined to be equal to those prescribed in Schedule II to the Companies Act; 2013.
iii. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
11.3 Disposal
Gains and losses on disposal are determined by comparing net sale proceeds with carrying amount. These are included in
statement of profit and loss.
12. INTANGIBLE ASSETS:
12.1 Licences
Separately acquired licences are shown at historical cost. They have a finite useful life and are subsequently carried at cost
less accumulated amortization and impairment losses.
12.2 Computer software
a) The cost of software (which is not an integral part of the related hardware) acquired for internal use and resulting in
significant future economic benefits-, is recognised as an Intangible Asset in the books of accounts when the same
is ready for use. Intangible Assets that are not yet ready for their intended use as at the Balance Sheet date are
classified as “Intangible Assets under Development.
b) Cost associated with maintaining of software programs are recognized as an expense as incurred.
c) Development costs that are directly attributable to the design and testing of identifiable and unique software
products controlled by the Company are recognized as intangible assets when the following criteria are met:
o It is technically feasible to complete the software so that it will be available for use
o Management intends to complete the software and use or sell it
o There is an ability to use or sell the software
o It can be demonstrated how the software will generate probable future economic benefits
o Adequate technical, financial and other resources to complete the development and to use or sell the software
are available, and
o The expenditure attributable to the software during its development can be reliably measured.

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 d) Directly attributable costs that are capitalized as part of the software include employee costs and an appropriate
portion of relevant overheads.
e) Capitalized development costs are recorded as intangible assets and amortized from the point at which the asset is
available for use.
12.3 Research and development
Research expenditure and development expenditure that do not meet the criteria in 12.2(c) above are recognized as
an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a
subsequent period.
In the event of the Company financed project(s) being foreclosed/ abandoned, the expenditure incurred up to the stage
of foreclosure/ abandonment is charged off to revenue in the year of foreclosure/ abandonment.
12.4 Amortization methods and periods
The Company amortizes intangible assets with a finite useful life using the straight-line method over the following periods:

Licences Useful Life/Production

Computer software 3 years

13. INVESTMENT PROPERTY:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company,
is classified as investment property. Investment property is measured initially at its cost, including related transaction costs
and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset’s carrying amount only when it is
probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be
measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is
replaced, the carrying amount of the replaced part is derecognised.
14. NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE AND DISCONTINUED OPERATIONS:
14.1 Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured
at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and contractual rights under insurance contracts, which are specifically
exempt from this requirement.
14.2 An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less
costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group),
but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the
date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.
14.3 Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are
classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for
sale continue to be recognised.
14.4 Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented
separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are
presented separately from other liabilities in the balance sheet.
14.5 A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that
represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to
dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The
results of discontinued operations are presented separately in the statement of profit and loss.
15. IMPAIRMENT OF ASSETS:
15.1 Intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.

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15.2 The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows
which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-
financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the
end of each reporting period.
16. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES
16.1 Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognized for future operating losses.
16.2 Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with
respect to any one item included in the same class of obligations may be small.
16.3 Provisions are measured at the present value of the management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provisions due to the passage of time is recognized as interest expense.
16.4 Warranty: Warranty on goods sold, wherever applicable, commences once the sale is complete and accordingly provision
for such warranty is made. The period, terms and conditions of warranty as per the relevant contract are taken into
consideration while determining the provision for such sales.
16.5 Provision for Onerous Contract: A provision for onerous contracts is recognised when the expected benefits to be derived
by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The
provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected
net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss
on the assets associated with that contract.
17. EMPLOYEE BENEFITS
17.1 Short-term obligations
Liabilities for wages and salaries, including other monetary and non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related service are recognized in
respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
17.2 Other long term employee benefit obligations
The liability for vacation leave is not expected to be settled wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore measured as the present value of expected future payments
to be made in respect of services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms
approximating to the terms of the related obligation. Re-measurements as a result of experience adjustments and changes
in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right
to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is
expected to occur.
17.3 Post-employment obligations
The Company operates the following post-employment schemes:
(a) Defined benefit plans such as Gratuity and contribution towards Provident Fund under the PF Act; and
(b) Defined contribution plans namely Retired Employee Medical Scheme (REMI)/Post Superannuation Medical Benefit
(PSMB), Death Relief Fund (DRF), Employee State Insurance Scheme (ESI) and Pension Scheme(s).

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 a) Defined benefit plans
The liability or assets recognized in the balance sheet in respect of defined benefit plans is the present value of the
defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Re-measurement gains and losses arising from experience adjustments and change in actuarial assumptions are
recognized in the period in which they occur, directly in other comprehensive income.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognized immediately in profit or loss as past service cost.
b) Defined contribution plans
The Company pays contributions to trusts established as per local regulations and also to publicly administered funds
as per local regulations. The Company has no further payment obligations once the contributions have been paid.
The contributions are accounted for as defined contribution plans and the contributions are recognized as employee
benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund
or a reduction in the future payments is available.
The Company’s contribution paid/ payable to Company approved Retired Employee Medical Scheme (REMI)/Post
superannuation Medical Benefit(PSMB), Death Relief Fund (DRF), Employee State Insurance Scheme (ESI) and Pension
Scheme are charged to revenue.
17.4 Termination Benefits
Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or
when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognizes termination
benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits;
and (b) when the entity recognizes costs for a restructuring that is within the scope of Ind AS 37 and involves the payment
of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefit are
measured based on the number of employees expected to accept the offer. Termination Benefits falling due more than 12
months after the end of the reporting period are discounted to present value.
Compensation paid to Employees under Voluntary Retirement Scheme (VRS) is charged to Statement of Profit and Loss in
the year of retirement.
18. CONTRIBUTED EQUITY
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
19. DIVIDENDS
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
20. EARNINGS PER SHARE
20.1 Basic earnings per share
Basic earnings per share is calculated by dividing:
The profit attributable to owners of the Company by the weighted average number of equity shares outstanding during
the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

20.2 Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
¾¾ The after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
¾¾ The weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.
Note 1 to 38 and Accounting Policies attached form part of accounts.

For G Natesan & Co., For and on behalf of the Board

Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 149
Notes forming part of the Financial Statements
Note 1: Property, Plant and Equipment
(₹ in Lakh)
NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumu- Accumu-
PARTICULARS Deduc- lated de- Depre- Deduc- lated de-
Impair-
Additions tions/ ad- As at preciation/ ciation/ tions/ ad- preciation/ As at
As at April ments
during the justments March 31, amorti- amortisa- justments amortisa- March 31,
1, 2022 during the
year during the 2023 sation as tion for the during the tion as at 2023
year
year at April 1, year year March 31,
2022 2023
Freehold Land 8,800.66 - - 8,800.66 - - - - - 8,800.66
Buildings 32,081.74 1,154.45 (2,105.18) 31,131.01 7,050.93 1,055.75 (491.36) - 7,615.32 23,515.69
Fencing and
Compound Walls 1,408.15 8.60 - 1,416.75 1,215.00 61.12 - - 1,276.12 140.63
Roads and Drains 1,690.40 - - 1,690.40 1,067.93 126.81 - - 1,194.74 495.66
Water Supply
Installations 188.50 - - 188.50 44.18 8.43 - - 52.61 135.89
Plant, Machinery and
Equipment 54,726.39 4,409.62 (9,208.43) 49,927.58 21,438.81 3,350.55 (4,090.66) - 20,698.70 29,228.88
Furniture and
Equipment 4,926.53 607.94 (67.68) 5,466.79 3,482.94 641.36 (32.70) - 4,091.60 1,375.19
Transport Vehicles 748.29 149.83 (133.23) 764.89 505.99 70.77 (115.02) - 461.74 303.15
Special Tools &
Equipment 5,416.84 475.91 (55.45) 5,837.30 4,755.28 454.71 (5.32) - 5,204.67 632.63
Total 1,09,987.50 6,806.35 (11,569.97) 1,05,223.88 39,561.06 5,769.50 (4,735.06) - 40,595.50 64,628.38

NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumu- Accumu-
PARTICULARS Deduc- lated de- Depre- Deduc- lated de-
Impair-
Additions tions/ ad- As at preciation/ ciation/ tions/ ad- preciation/ As at
As at April ments
during the justments March 31, amorti- amortisa- justments amortisa- March 31,
1, 2021 during the
year during the 2022 sation as tion for the during the tion as at 2022
year
year at April 1, year year March 31,
2021 2022
Freehold Land 8,800.66 - - 8,800.66 - - - - - 8,800.66
Buildings 32,080.67 39.19 (38.12) 32,081.74 5,747.65 1,303.28 - - 7,050.93 25,030.81
Fencing and
Compound Walls 1,311.54 96.61 - 1,408.15 1,158.14 56.86 - - 1,215.00 193.15
Roads and Drains 1,678.83 11.57 - 1,690.40 766.70 160.49 - 140.74 1,067.93 622.47
Water Supply
Installations 187.84 0.66 - 188.50 35.55 8.63 - - 44.18 144.32
Plant, Machinery and
Equipment 52,258.54 2,501.59 (33.74) 54,726.39 17,644.27 3,808.03 (13.49) - 21,438.81 33,287.58
Furniture and
Equipment 4,577.13 375.28 (25.88) 4,926.53 2,868.75 624.22 (10.03) - 3,482.94 1,443.59
Transport Vehicles 685.01 63.28 - 748.29 435.61 70.38 - - 505.99 242.30
Special Tools &
Equipment 5,373.47 43.37 - 5,416.84 4,023.91 731.37 - - 4,755.28 661.56
Total 1,06,953.69 3,131.55 (97.74) 1,09,987.50 32,680.58 6,763.26 (23.52) 140.74 39,561.06 70,426.44

Notes:
Freehold Land:
(a) Freehold Land includes
(i) 2 Acres and 08 Guntas (March 31,2022: 2 Acres and 08 Guntas) of land at Kanchanbagh, Hyderabad given on permissive
possession to a Government of India Organisation and is in their possession.
(ii) 146 Acres 32 Guntas (March 31,2022: 146 Acres 32 Guntas) of land at Kanchanbagh, Hyderabad received free of cost from
State Government, is valued at ₹ 28.42 Lakh (as at March 31,2022: ₹ 28.42 Lakh), title to this land is yet to be received.
(b) In respect of land admeasuring 82 Acres 31 Guntas (as at March 31,2022: 82 Acres 31 Guntas) at Karmanghat, Hyderabad
acquired by state government for the company for which an amount of ₹ 21.66 Lakh (as at March 31 2022: ₹ 21.66 Lakh) paid
by the company is capitalised.

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(₹ in Lakh)
(c) Free hold land of 632 Acres 16.50 Guntas (as at March 31,2022: 632 Acres 16.50 Guntas) at Ibrahimpatnam, Rangareddy
District is taken possession on agreement of sale by paying ₹ 6136.90 Lakh (as at March 31,2022: ₹ 6136.90 lakh) based on
tentative fixation of price is capitalised. Gross Carrying Value is ₹ 7965.16 Lakh (as at March 31, 2022 ₹ 7965.16 Lakh) including
the environmental fee and development charges incurred.
Buildings :
(a) Buildings include ₹ 111.01 Lakh as at March 31, 2023 (March 31, 2022 : ₹ 111.01 Lakh) being the value of buildings constructed
on land not belonging to the Company.
(i) The Estimated useful life of various categories of assets (As per schedule II to the companies Act, 2013) is described as follows:

Asset Useful life

Buildings 30 / 60
Fencing and Compound walls 5
Roads and Drains 10
Water supply installations 30
Plant, Machinery and Equipment 10/ 12/ 15
Furniture and Equipment 3 / 5 / 10
Transport vehicles 8 / 10

(ii) For method and accounting of depreciation, refer the accounting policy 11: Property, Plant and Equipment.
(iii) Impairment is tested as per the accounting policy 15. Refer Note no. 38(1) for Impairment Loss
(iv) Refer Note 38(7) for details relating to short closed projects.
(v) Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company
(vi) The Property, Plant and Equipment includes assets funded by the customer against which deferred revenue is recognised as the
company has control over these assets.

PARTICULARS As at 31.03.2023 As at 31.03.2022

Gross Gross
Accumulated Net Carrying Accumulated Net Carrying
Carrying Carrying
depreciation Amount depreciation Amount
Amount Amount

Customer Financed Assets 2,369.40 523.44 1,845.95 1,759.01 436.99 1,322.01

(vii) The Property, Plant and Equipment does not include assets funded by the customer for use in their contracts but held by the
company.

PARTICULARS As at 31.03.2023
Opening balance 10,725.87
Additions 2,231.84
Deletions -
Closing balance 12,957.70

The opening balance of ₹ 10725.87 Lakhs was previously included in Property, Plant and Equipment at carrying amount of
₹ 5,455.28 Lakhs as at March 31, 2022. These were derecognised due to change in accounting policy on customer financed
assets. Also refer note 38(27) for Impact due to change in Accounting policy on Customer financed assets.

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BHARAT
DYNAMICS LIMITED 151
Note 2: Capital Work-in-Progress
(₹ in Lakh)
As at As at
Particulars
March 31, 2023 March 31, 2022
Civil 4,972.84 2,625.56
Plant & Machinery 2,426.87 1,050.44
Others 34.95 397.18
Total 7,434.66 4,073.18

Notes:
(i) Refer note 38(6) for capital commitments
(ii) Refer note 38(21)E: Ageing and completion of capital work-in-progress
Note 3: Investment Property
(₹ in Lakh)
NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumu-
Accumu-
PARTICULARS lated de-
Deductions/ lated de- Deprecia- Deductions/
Additions Impairments preciation/ As at
As at April adjustments As at March preciation/ tion/ amor- adjustments
during the during the amortisation March 31,
1, 2022 during the 31, 2023 amortisation tisation for during the
year year as at 2023
year as at April 1, the year year
March 31,
2022
2023
Land (held for rentals) 0.97 - - 0.97 - - - - - 0.97

NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumulated
PARTICULARS Deduc-
Deductions/ Accumulated Impair- depreciation/
Additions As at Depreciation/ tions/ As at
As at April adjustments depreciation/ ments amortisation
during the March 31, amortisation adjustments March 31,
1, 2021 during the amortisation as during the as at
year 2022 for the year during the 2022
year at April 1, 2021 year March 31,
year
2022

Land (held for rentals) 0.97 - - 0.97 - - - - - 0.97

(i) Amounts recognised in Profit or Loss for Investment Properties

Particulars March 31, 2023 March 31, 2022

Rental income - -
Profit from Investment Properties before depreciation - -
Depreciation - -
Profit from Investment Properties - -
(ii) Contractual obligations
The Company has no contractual obligations to sell, construct or develop investment property or for its repairs, maintenance or
enhancements.
(iii) Leasing arrangements
Land admeasuring 5 acres and 1 gunta at Kanchanbagh is leased to Indian Navy under long-term operating leases with rentals payable
yearly. The lease rentals for such property is ₹ 1 per annum per acre. Leasing arrangements are the same for year ended March 31,
2023 and March 31, 2022.

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(iv) Fair value (₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

Investment properties 2967.16 2967.16
Significant judgement:
As the land given to Indian Navy is within the premises of the company and it would not be possible for the company to give the land
to a third party, the Registration department value of the land is considered to be the fair value of the land. The fair value arrived is
` 0.122 lakh (₹ 0.122 lakh ast 31st March 2022) per square yard as per the Registration department.
(v) Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.
(vi) Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company
(vi) Refer Note 38(21)B with regard to disclosure relating to valuation by registered valuer as defined under rule 2 of Companies
(Registered Valuers & Valuation) Rules, 2017
Note 4: Right of use assets
NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumulat-
Accumulat-
PARTICULARS Deduc- Deduc- ed depreci-
ed depreci- Deprecia-
Additions tions/ tions/ Impair- ation/ am- As at
As at April As at March ation/ am- tion/ amor-
during the adjustments adjustments ments dur- ortisation March 31,
1, 2022 31, 2023 ortisation tisation for
year during the during the ing the year as at 2023
as at April 1, the year
year year March 31,
2022
2023

Leasehold Land 8,599.75 - - 8,599.75 3,498.23 56.92 - - 3,555.15 5,044.60

Leasehold Building 998.91 - - 998.91 418.11 139.37 - - 557.48 441.43

Total 9,598.66 - - 9,598.66 3,916.34 196.29 - - 4,112.63 5,486.03

NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumulat-
Accumulat-
PARTICULARS Deduc- Deduc- ed depreci-
ed depreci- Deprecia-
Additions tions/ tions/ Impair- ation/ am- As at
As at April As at March ation/ am- tion/ amor-
during the adjustments adjustments ments dur- ortisation March 31,
1, 2021 31, 2022 ortisation tisation for
year during the during the ing the year as at 2022
as at April 1, the year
year year March 31,
2021
2022

Leasehold Land 3,477.17 5,122.58 - 8,599.75 222.30 58.10 - 3,217.83 3,498.23 5,101.52

Leasehold Building 998.91 - - 998.91 278.74 139.37 - - 418.11 580.80

Total 4,476.08 5,122.58 - 9,598.66 501.04 197.47 - 3,916.34 5,682.32

Leasehold Land :
(a) Land measuring 3 acres 25 guntas (March 31, 2022: 3 acres 25 guntas) at Visakhapatnam was taken on lease from Government
of India at a rental of ₹ 1.00 per acre per annum.
(b) Leasehold land measuring 553 Acres 34 Guntas (as at March 31,2022: 553 Acres 34 Guntas ) at Amravati for which a premium
of ₹ 3922.37 lakh was paid is taken on lease on 07/02/2014 with certain conditions attached to it. One of the main condition
is, if the factory building and works are not completed within 60 months from the date of allotment, unless the time is extended,
the lease agreement may be cancelled and the lessor may take possession of the leasehold land together with all the erections, if
any, on the said land, without paying any compensation to the company. At present the period of investment has been extended
upto 05.04.2019. The project for which the land has been taken on lease is under finalisation with Ministry of Defence (MoD),
the Company is pursuing for further extension of period of investment. Pending receipt of extension of time period, the company
has provided for impairment amounting to ₹ 3217.83 lakh during 2021-22.
(₹ in Lakh)

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BHARAT
DYNAMICS LIMITED 153
 (₹ in Lakh)
(c) Leasehold land measuring 183 hectares in Defence Industrial Corridor at Jhansi District is taken on lease from UPEIDA for
which an amount of ₹ 5071.84 lakh was paid and capitalized along with registration charges. The lease term is 30 years with
two renewals of 30 years each aggregating to 90 years for an annual lease rent of ₹ 1.00 per annum. Stamp Duty amounting to
₹ 253.59 lakh is exempted to be paid subject to the condition that construction is to be commenced by 7th November 2022.
Award of contract relating to infrastructure facility is under approval as on 31.03.2023.
Leasehold Building :
Corporate office building measuring 53,284 sq ft is taken on lease from APSFC from 01.06.2016 for a period of 10 years. Company
recognised the building under right of use assets (RoU) asset at a value of ₹ 998.91 lakhs, a corresponding lease liability of ₹ 972.01
lakhs and a provision for an amount of ₹ 26.90 lakhs towards asset retirement obligation on 01.04.2019 as per Ind AS 116. Lease
liability is recognised at the present value of lease payment discounted at the incremental borrowing rate of 8%.
Refer Note 38(1): Impairment Loss

(vi) Refer Note 38(21)A for Title deeds of immovable property not held in the name of the company
Note 5: Intangible Assets
(₹ in Lakh)
NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumu-
Accumu-
PARTICULARS lated de-
Deductions/ lated de- Deprecia- Deductions/
Additions As at Impairments preciation/ As at
As at adjustments preciation/ tion/ amor- adjustments
during the March 31, during the amortisation March 31,
April 1, 2022 during the amortisation tisation for during the
year 2023 year as at 2023
year as at the Year year
March 31,
April 1, 2022
2023
Development
3,324.10 - - 3,324.10 3,324.10 - (0.00) - 3,324.10 0.00
Expenditure
Computer Software 2,282.63 3.47 - 2,286.10 2,164.24 52.35 - - 2,216.59 69.51
License Fee 19,914.69 1,219.93 - 21,134.62 8,758.18 1,707.65 - - 10,465.83 10,668.79
Total 25,521.42 1,223.40 - 26,744.82 14,246.52 1,760.00 (0.00) - 16,006.52 10,738.30

NET CAR-
GROSS CARRYING AMOUNT DEPRECIATION/ AMORTISATION RYING
AMOUNT
Accumu-
Accumu-
PARTICULARS lated de-
Deductions/ lated de- Deprecia- Deductions/
Additions As at Impairments preciation/ As at
As at adjustments preciation/ tion/ amor- adjustments
during the March 31, during the amortisation March 31,
April 1, 2021 during the amortisation tisation for during the
year 2022 year as at 2022
year as at the Year year
March 31,
April 1, 2021
2022
Development
3,324.10 - - 3,324.10 3,232.73 91.37 - - 3,324.10 -
Expenditure
Computer Software 2,182.78 99.85 - 2,282.63 2,085.82 78.42 - - 2,164.24 118.39
License Fee 19,914.69 - - 19,914.69 6,853.23 1,904.95 - - 8,758.18 11,156.51
Total 25,421.57 99.85 - 25,521.42 12,171.78 2,074.74 - - 14,246.52 11,274.90

Note: The intangible assets include assets funded by the customer against which deferred revenue is recognised as the company has
control over these assets.

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(₹ in Lakh)
As at 31.03.2023 As at 31.03.2022

PARTICULARS Gross Net Gross

Accumulated Accumulated Net Carrying
Carrying Carrying Carrying
depreciation depreciation Amount
Amount Amount Amount
Customer Financed Assets 4,367.59 4,359.41 8.18 4,367.59 3,683.08 684.51
Significant judgement
The company estimates the useful life of the software to be 3 years based on the expected technical obsolescence of such assets.
However, the actual useful life may be shorter or longer than 3 years, depending on technical innovations.
(₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
6 Non-current Investments
Investment carried at fair value through profit and loss (Unquoted ) - -
(i) 9,21,920 (as at March 31,2022 9,21,920) (including 3,85,920
Bonus Shares) fully paid-up Equity shares (Unquoted) of ₹ 10/- each -
of [Link] Power Corporation Limited -
- Refer note 38(15): Fair value measurement.
Significant Judgement:
Investments in AP Gas Power Corporation Limited have been designated as fair value through profit and loss. Fair value is
considered based on Net worth of investee as the shares are unquoted and the company does not have a significant influence
in the investee. However, during 2021-22, APGPCL received an adverse arbitration award, the implementation of which is
likely to erode the networth of APGPCL. Accordingly Fair value of the investment is considered as 'Nil'.

7 Non current Loans

Loans to Employees
- Secured, considered good - -
- Unsecured, considered good 173.86 203.69
173.86 203.69
Refer note 38(15): Fair value measurement.
(₹ in Lakh)
8 Other Non-current Financial Assets
Claims/Refunds receivable 6,171.55 93.00
Deferred Debts 4,431.59 3,992.76
10,603.14 4,085.76
Refer note 38(15): Fair value measurement.
Significant Judgement:
Deferred Debts:
Deferred debts are receivables from the Indian Army and Ordnance factory. The receivable is denominated in Indian Rupees
(INR) and receivable in equal instalments over 45 years commencing from 01.04.1992. As per the agreement, the receivable
is adjusted on the basis of rates of Special Drawing Rights (SDR), issued by the International Monetary Fund (IMF). As such
the receivable does not satisfy the Solely Payment of Principal and Interest (SPPI) criteria as set out in Ind AS 109. Hence, the
receivable is measured at fair value through profit and loss. Deferred debt is discounted at 8% to arrive at the fair value on
initial recognition and the difference between the fair value and the total deferred debt is considered as deferred expense.
Subsequently this is carried at fair value through profit and loss.

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BHARAT
DYNAMICS LIMITED 155
 (₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
9 Other Non-current Assets
Capital advances 714.30 660.30
Deferred expense* 1,807.22 1,946.23
2,521.52 2,606.53
* Refer the significant judgement on Deferred Debts in Note No. 8
(₹ in Lakh)
10 INVENTORIES *
Raw Materials and Components 1,34,210.93 1,19,032.58
Less: Provision (6,105.60) (5,541.28)
GIT of Raw Materials and Components 269.09 274.02
1,28,374.42 1,13,765.32
Work-in-progress# 51,078.76 46,766.10
Less: Provision (1,119.98) (462.71)
49,958.78 46,303.39
Finished Goods 495.86 2,904.80
Less: Provision (150.19) (49.54)
GIT of Finished Goods 314.49 288.94
660.16 3,144.20
Stores and Spare Parts 2,867.94 2,023.41
Less:Provision (279.25) (246.61)
GIT of Stores and Spare Parts - 20.09
2,588.69 1,796.89
Loose Tools 1,006.25 994.16
Less:Provision (344.75) (559.03)
GIT of Loose Tools - -
661.50 435.13
Construction Materials - -
Stores & Equipment - Welfare 312.63 310.79
Less: Amortisation (312.63) (310.79)
- -
Miscellaneous Stores 0.20 0.20
1,82,243.75 1,65,445.13
# Includes Inventory with Customers 9.20 9.20
* Include Material issued to Sub-contractors/Others 11,695.58 16,361.62
- Out of ₹ 11,695.58 lakh (as at March 31,2022 ₹ 16,361.62 lakh), material lying with sub contractors ₹ 9,426.66 Lakh (as at March 31,2022
₹ 4,196.94 Lakh) were confirmed / physically verified by the vendors. Differences on confirmation / physical verification of material lying with
subcontractors of ₹ 55.57 (₹ 497.98 Lakh as at March 31,2022) is shown as claims receivable and reduced from inventories.
- Valuation of Inventories has been made as per Company's Accounting Policy No. 7.
- Refer note 38(7): Details of short closed projects,38(12) Charges registered.
- Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

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(₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
11 Trade Receivables
Secured - -
Unsecured, considered good 18,457.27 30,416.13
Doubtful - -
Less: Allowance for doubtful debts (expected credit loss allowance) - -
18,457.27 30,416.13
Refer Note: 38(15): Fair value measurement; 38(12) Charges registered.
Refer Note: 38(20)(F): Movement of Trade Receivables
Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

Ageing schedule for Trade Receivables as at March 31, 2023

Outstanding for following periods from due date of payment

Particulars Less than 6 months More than Total
1-2 years 2-3 years
6 months -1 year 3 years
(i) Undisputed Trade receivables – 12,707.15 2,264.65 2,941.91 348.88 194.68 18,457.27
considered good
(ii) Undisputed Trade Receivables – which
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit
impaired
(iv) Disputed Trade Receivables–considered
good
(v) Disputed Trade Receivables – which
have significant increase in credit risk
(vi) Disputed Trade Receivables – credit
impaired
Total Trade Receivables 12,707.15 2,264.65 2,941.91 348.88 194.68 18,457.27

Ageing schedule for Trade Receivables as at March 31, 2022

Outstanding for following periods from due date of payment
Particulars Less than 6 months More than Total
1-2 years 2-3 years
6 months -1 year 3 years
(i) Undisputed Trade receivables – 26,306.78 1,052.86 2,246.39 501.66 308.44 30,416.13
considered good
(ii) Undisputed Trade Receivables – which
have significant increase in credit risk
(iii) Undisputed Trade Receivables – credit
impaired
(iv) Disputed Trade Receivables–considered
good
(v) Disputed Trade Receivables – which
have significant increase in credit risk
(vi) Disputed Trade Receivables – credit
impaired
Total Trade Receivables 26,306.78 1,052.86 2,246.39 501.66 308.44 30,416.13

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 157
 (₹ in Lakh)

PARTICULARS As at March 31, 2023 As at March 31, 2022

12 Cash and Cash Equivalents
Balances with Banks

- in current accounts 77,204.89 3,055.17

- in deposit accounts (Up to 3 months) 28,076.92 23,448.78

Cash on hand* 6.56 0.42

Remittances in transit - -
1,05,288.37 26,504.37
There are no repatriation restrictions with regard to cash and cash equivalents as at the end of the reporting period and prior
periods.
* Cash on hand includes cash held with imprest holders

Refer note 38(15): Fair value measurement.

13 Other Bank balances

Bank deposits other than margin money 2,80,598.00 1,63,449.00

(Maturity period more than 3 months but less than 12 months)
2,80,598.00 1,63,449.00
- The company has been sanctioned an overdraft facility of ₹ 1,500.00 lakhs against which the company had pledged
deposits worth ₹ 1,800.00 lakhs as security. Overdraft utilized and outstanding is Nil as at March 31, 2023 (Nil as at March
31, 2022).
- There are no bank deposits with maturity beyond 12 months.

Reconciliation of Cash and Bank balances:

Cash and Cash Equivalents (as per the above) 1,05,288.37 26,504.37

Bank Balance (as per the above) 2,80,598.00 1,63,449.00

Total Cash and Bank balances 3,85,886.37 1,89,953.37

14 Loans to Employees

- Secured, considered good - -

- Unsecured, considered good 202.16 183.74

Total Current Loans 202.16 183.74

Also refer note 38(15): Fair value measurement.

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)

PARTICULARS As at March 31, 2023 As at March 31, 2022

15 Other Current Financial Assets
Claims/Refunds receivable@ 3,360.78 7,384.87
Less: Provision for doubtful claims (Refer Note below) (21.47) (21.47)
Deferred Debts* 394.74 347.85
Unbilled Receivables# 1,26,165.35 1,19,119.48
Interest accrued on Deposits 2,499.47 2,317.85
Interest accrued - Others 12.62 13.45
Other Assets held for sale 0.28 0.28
Total Other Current Financial Assets 1,32,411.77 1,29,162.31
Refer note 38(15): Fair value measurement.
#Refer note 38(20)(C): Movement of Contract Assets and Contract Liabilities
* Refer the significant judgement on Deferred Debts in Note No. 8
@ Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets
Note:
(i) In the case of a supplier, the company initiated legal action for recovery of advance amount of ₹ 17.14 Lakh together
with interest etc., as the Contract was not executed. Though District Court issued a decree for an amount of ₹ 48.10 lakh
together with interest etc., in favour of the company, the decretal amount has not been recognised as claims receivable/
income since the supplier was granted stay of operation of the decree by Hon’ble High Court and the matter is sub-judice
as on date.
(ii) In the case of another supplier, the Company has initiated legal action for recovery of advance amount of ₹ 4.33 Lakhs
with interest, being amount paid towards material purchases, which were subsequently rejected and taken back by the
supplier but failed to supply the correct material. The case was decreed in favour of M/S BDL(ex-parte) and has to be
executed.

16 Other Current Assets

Advances other than capital advances:
Advances to vendors
- Secured, considered good 413.40 389.95
- Unsecured, considered good 24,167.39 29,427.63
- Unsecured, considered doubtful - 1.71
Less: Provision for doubtful advances - (1.71)
Prepaid expenses 309.77 369.60
Deposits@ 3,547.69 3,817.79
Deferred Expense* 139.02 139.02
Earmarked balances with banks for unpaid dividend 179.62 101.05
CSR Expenditure available for setoff # 107.18 5.75
Total Current Assets 28,864.07 34,250.79
Refer note 38(7): Details of short closed projects.
* Refer the significant judgement on Deferred Debts in Note No. 8
# Refer note 38(23) for Movement in CSR provision
@ Includes Central Sales tax of ₹ 693.85 lakh and service tax of ₹ 128.43 lakh pre-deposited for filing of appeal.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 159
 (₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
17 Equity Share Capital:
Authorised
20,00,00,000 Equity Shares of ₹ 10/- each 20,000.00 20,000.00
Issued, Subscribed and paid up
18,32,81,250 Equity Shares of ₹ 10/- each fully paid 18,328.12 18,328.12
18,328.12 18,328.12
Notes:
Equity shares have a par value of ₹ 10 (2016-17 and before: ₹ 1000). They entitle the holder to participate in dividends, and
to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.
(A) Reconciliation of the number of Shares outstanding: (₹ in Lakh)
Particulars Number of Shares Amount
Balance as at March 31, 2021 18,32,81,250 18,328.12
Buy back during the year - -
Bonus issue during the year - -
Balance as at March 31, 2022 18,32,81,250 18,328.12
Buy back during the year - -
Bonus issue during the year - -
Balance as at March 31, 2023 18,32,81,250 18,328.12
(B) Details of shares held by each shareholder holding more than 5% shares
As at March 31, 2023 As at March 31, 2022
S. No Particulars Number of shares % holding of Number of % holding of
held equity shares shares held equity shares
Fully paid equity shares
1 Government of India 13,73,25,527 74.93% 13,73,25,527 74.93%
2 HDFC Trustee Company Limited 1,28,83,927 7.03% 1,41,89,604 7.74%
3 Life Insurance Corporation of India 29,43,258 1.61% 1,14,55,734 6.25%
(C) Details of the buyback for the last 5 years immediately preceding the Current year
March 31, March 31, March 31, March 31, March 31, March 31,
Particulars
2023 2022 2021 2020 2019 2018
Number of shares bought back (nos.) 3,05,46,875
Face value of each share bought back (in Rupees) 10.00
Total Face value of shares bought back 3,054.69
Total Premium paid on shares bought back 41,998.90
Consideration paid towards buy back 45,053.59
Share capital reduction 3,054.69
Share premium utilised -
General reserve utilised 45,053.59
Amount transferred to Capital redemption reserve 3,054.69
The face value of equity shares of ₹ 1000/- each was split into face value of ₹ 10/- each and accordingly no. of equity shares
increased by 100 times with effect from 8th May 2017 .
- In accordance with Sec 68,69 and 70 of the Companies Act, 2013, the company initiated and completed buy back of shares
from Government of India during the year 2017-18

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DYNAMICS LIMITED
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)
D) Details of the Bonus shares issued for the last 5 years immediately preceding the current year .
March 31, March 31, March 31, March 31, March 31, March 31,
Particulars
2023 2022 2021 2020 2019 2018
No. of Bonus Shares issued (nos.) - - - - - 9,16,40,625
Value of Bonus Shares issued (₹ in lakh) - - - - - 9,164.06

(E) Details of shareholding of Promoters

Shares held by promoters As at March 31, 2023 % change As at March 31, 2022 % change
S % of toal during % of toal during
Promoter name No. of Shares 2022-23 No. of Shares 2021-22
No shares shares
Fully paid equity shares
1 Government of India 13,73,25,527 74.93% - 13,73,25,527 74.93% -

PARTICULARS As at March 31, 2023 As at March 31, 2022

18 Other Equity
General Reserve 3,03,135.54 2,88,135.54
Retained Earnings 5,578.96 2,664.68
Other Comprehensive Income - Remeasurement of the defined (5,892.85) (6,072.60)
benefit plans
Balance at end of year 3,02,821.65 2,84,727.62

A. General Reserve
Balance at beginning of year 2,88,135.54 2,48,135.54
Transfer to Capital Redemption Reserve - -
Buyback Premium Written off - -
Transfer from Statement of Profit and Loss 15,000.00 40,000.00
Bonus shares issued - -
Balance at end of year 3,03,135.54 2,88,135.54
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the general reserve will not be reclassified subsequently to profit or loss.

B. Retained Earnings
Balance at beginning of year 2,664.68 7,243.10
Profit for the year 35,217.49 49,992.44
Final dividend (1,832.81) (1,191.33)
Interim Dividend (14,937.42) (13,379.53)
Adjustment due to change in Accounting Policy* (532.98) -
Transfer to General Reserve (15,000.00) (40,000.00)
Balance at end of year 5,578.96 2,664.68

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 161
 (₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
C. Other Comprehensive Income - Remeasurement of the defined
benefit plans
Balance at beginning of year (6,072.60) (5,232.04)
Other comprehensive income (net of tax) 179.75 (840.56)
Balance at end of year (5,892.85) (6,072.60)
*Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

19 Non- Current Lease Liabilities

Lease Liabilities 374.11 520.75
374.11 520.75

20 Other Non - Current Financial Liabilities

Deferred Credit 1,612.53 1,674.19
Embedded derivative liability (Deferred liability) 2,944.94 2,431.97
4,557.47 4,106.16
Also refer note 38(15): Fair value measurement.
Significant judgements:
1) Deferred credit: Deferred credit represents the principal credit portion (at the base rate) of the 45 years (commencing from
01.04.1992) deferred credit provided by the Russian government. The deferred credit is a financial liability, therefore shall be
recognised at fair value. The fair value is ascertained by discounting the future cash outflows at the rate of 8%. The company
considers 8% to be the cost of capital.
2) Embedded derivative: The increase in liability due to movement in SDR rates is assessed to be an embedded derivative. The
embedded derivative is accounted at the fair value on each reporting date through Profit and loss. The fair value is considered
to be the adjusted rupee value of the SDR unit as on the reporting date according to the agreement.

21 Non-current Provisions
Asset Retirement Obligation 37.00 34.16
Employee benefits
Accrued Leave - -
Gratuity - -
Provident Fund - 4,431.48
37.00 4,465.64
- Refer note 38(3) : Employee Benefit Obligations

22 Other Non - Current Liabilities

Advances from Customers-$
Ministry of Defence (MoD) 2,70,624.95 63,462.98
Others 45,275.25 9,857.22
Deferred Income* 1,858.55 2,001.51
Deferred Revenue # 2,769.43 10,812.24
3,20,528.18 86,133.95
* Refer the significant judgement on Deferred Credit in note No.20
# Includes grant for solar plant - Refer note 38 (19). Also refer note 38(27): Impact due to change in Accounting policy on
Customer financed assets
$ Refer note 38(20)(C) : Movement of Contract Assets and Liabilities
Also Refer Accounting Policy no.3 A (vi) and 4.4

162 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
23 Borrowings
(a) Loans repayable on demand
(i) From Banks

-Secured bank overdraft - -

- Unsecured - -

- -
The company has been sanctioned an overdraft facility of ₹ 1,500.00 lakhs against which the company had pledged deposits
worth ₹ 1,800.00 lakhs as security.

24 Current Lease Liabilities

Current maturities of Lease Liabilities 146.64 131.96
146.64 131.96

25 Trade Payables
Trade Payables - Current:
Dues to micro enterprises and small enterprises 4,276.06 3,996.37
Dues to creditors other than micro, small and medium enterprises 42,161.77 51,250.61
46,437.83 55,246.98

Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
(i) Principal amount and interest due thereon remaining unpaid to
any supplier as at the end of the accounting year
- Principal 4,276.06 3,958.95
- Interest - 37.42
(ii) The amount of interest paid along with the amounts of the
payment made to the supplier beyond the appointed day
(iii) The amount of interest due and payable for the year - -
(iv) The amount of interest accrued and remaining unpaid at the end - 37.42
of the accounting year
(v) The amount of further interest due and payable even in the - -
succeeding year, until such date when the interest dues as above
are actually paid
- Dues to Micro, Small and Medium Enterprises have been
determined to the extent such parties have been identified on
the basis of information collected by the Management. This
has been relied upon by the Auditors.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 163
 (₹ in Lakh)
Ageing schedule for Trade Payables as at March 31, 2023

Outstanding for following periods from due date of payment Total

Particulars More than 3
Less than 1 year 1-2 years 2-3 years
years
(i) MSME 1,454.90 1,813.00 640.79 367.37 4,276.06
(ii) Others 24,756.79 6,341.25 3,658.08 7,405.65 42,161.77
(iii) Disputed dues - MSME
(iv) Disputed dues - Others
Total Trade Payables 26,211.69 8,154.25 4,298.87 7,773.02 46,437.83

Ageing schedule for Trade Payables as at March 31, 2022

Outstanding for following periods from due date of payment Total

Particulars More than 3
Less than 1 year 1-2 years 2-3 years
years
(i) MSME 2,841.77 653.11 125.71 375.78 3,996.37
(ii) Others 34,175.60 4,726.65 7,195.96 5,152.40 51,250.61
(iii) Disputed dues - MSME
(iv) Disputed dues - Others
Total Trade Payables 37,017.37 5,379.76 7,321.67 5,528.18 55,246.98

PARTICULARS As at March 31, 2023 As at March 31, 2022

26 Other Current Financial Liabilities
Current maturities of Deferred credit* 405.95 357.73
Deposits 1,274.48 1,413.42
Creditors for expenses 7,716.12 6,828.34
Employee benefits payable 6,835.04 6,388.29
Capital works 255.87 1,146.22
Others 274.12 302.59
16,761.58 16,436.59
Also refer note 38(15): Fair value measurement.
* Refer the significant judgement on Deferred Credit in note No.20

27 Other Current Liabilities

Advances from Customers:#
- Ministry of Defence (MoD) 86,957.45 82,761.24
- Others 22,812.78 60,115.76
Deferred Income* 142.97 142.97
Deferred Revenue@ 828.89 1,456.66
Statutory remittances 11,336.73 10,883.02
1,22,078.82 1,55,359.65
Refer note 38(7): Details of short closed projects.
@ Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets
# Refer note 38(20)(C): Movement of Contract Assets and Liabilities
* Refer the significant judgement on deferred credit in note No. 20

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)
PARTICULARS As at March 31, 2023 As at March 31, 2022
28 Current Provisions
Employee benefits
- Gratuity 521.37 -
- Accrued leave 917.23 -
- Provident Fund 2,306.97 967.97
Warranty 11,230.05 10,061.84
Onerous contract 785.03 785.03
Future charges 1,870.84 1,870.84
Others 17,540.25 17,244.92
35,171.74 30,930.60

Movement in provisions
Provisions Warranty Onerous Contract Future Charges Others
Balance as at March 31, 2022 10,061.84 785.03 1,870.84 17,244.92
Additional provisions recognised 2,958.15 - - 396.38
Utilisation during the year (96.63) - - -
Reversals during the year (1,693.31) - - (101.05)
Balance as at March 31, 2023 11,230.05 785.03 1,870.84 17,540.25
Warranties:
Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims
and also management estimates regarding possible future outflow on servicing the customers for any corrective action in
respect of product failure which is generally expected to be settled within a period of 1 to 2 years from the date of supply.
Onerous contract:
Provision for onerous contract represents the loss assessed by the company on its executory sale contracts. Such loss will
be provided as and when the assessment is made, by the company during the course of execution / at the inception of such
contracts. The provision is reviewed periodically.
Future charges:
Provision for future charges represents the estimated liability on account of revised ancillary/ packing material accepted to be
delivered in lieu of ancillary/ packing material originally stipulated in the contract terms for the sales effected earlier and value
of spares sent to forward location on user request for serviceability to avoid breakdown in emergency situations.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 165
 (₹ in Lakh)

PARTICULARS As at March 31, 2023 As at March 31, 2022

29 Income Taxes
29A Deferred Tax Balance
Deferred Tax Assets 11,082.07 10,747.46
Deferred Tax Liabilities 5,440.05 5,036.75
Total 5,642.02 5,710.71

Breakup of Deferred Tax balances

Deferred Tax Assets
Freehold Land - -
Lease Liability 131.06 164.27
Provisions 10,427.73 10,270.49
Fair value adjustment to Deferred credit 492.47 312.70
Other Current Financial Liabilities 30.81
Sub-Total 11,082.07 10747.46

Deferred Tax Liabilities

Property plant and Equipment 3,474.09 3,108.28
Right of use assets 111.09 146.17
Intangible Assets 1,376.00 1,478.23
Fair value of investments
- Equity Shares in unlisted Company - -
- Mutual Funds - -
Fair value adjustment to Deferred debts 478.87 304.07
Others - -
Sub-Total 5,440.05 5,036.75

Net Deferred Tax Asset/(Liability) 5,642.02 5,710.71

Reconciliation of Deferred Tax Balances:

For 2022-23
Recognised
Recognised Recognised in
Opening in Other Closing
Particulars in Opening statement of
Balance Comprehensive Balance
Reserves Profit and loss
Income
Deferred Tax Assets pertaining to :
Freehold Land - -
Lease Liability 164.27 (33.21) 131.06
Provisions 10,270.49 217.69 (60.45) 10,427.73
Fair value adjustment to Deferred credit 312.70 179.77 492.47
Other Current Financial Liabilities - 30.81 30.81
Sub total 10,747.46 - 395.06 (60.45) 11,082.07

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)

Reconciliation of Deferred Tax Balances:

For 2022-23
Recognised
Recognised Recognised in
Opening in Other Closing
Particulars in Opening statement of
Balance Comprehensive Balance
Reserves Profit and loss
Income
Deferred Tax Liabilities pertaining to :
Property plant and Equipment 3,108.28 (179.26) 545.07 3,474.09
Right of use asset 146.17 (35.08) 111.09
Intangible Assets 1,478.23 (102.23) 1,376.00
Fair value of investments
- Equity Shares in unlisted Company - -
- Mutual Funds - -
Fair value of Deferred Debt 304.07 174.80 478.87
Others - -
Sub total 5,036.75 (179.26) 582.56 - 5,440.05
Total 5,710.71 179.26 (187.50) (60.45) 5,642.02

Reconciliation of Deferred Tax Balances:

For 2021-22
Recognised
Recognised Recognised in
Opening in Other Closing
Particulars in Opening statement of
Balance Comprehensive Balance
Reserves Profit and loss
Income
Deferred Tax Assets pertaining to :
Freehold Land 1,914.72 (1,914.72) -
Lease Liability 194.09 (29.82) 164.27
Provisions 7,964.48 2,023.31 282.70 10,270.49
Fair value adjustment to Deferred credit 313.82 (1.12) 312.70
Sub total 10,387.11 77.65 282.70 10,747.46
Deferred Tax Liabilities pertaining to :
Property plant and Equipment 3,537.56 (429.28) - 3,108.28
Right of use asset 181.25 (35.08) - 146.17
Intangible Assets 1,522.12 (43.89) - 1,478.23
Fair value of investments
- Equity Shares in unlisted Company 67.77 (67.77) -
- Mutual Funds - - -
Fair value adjustment to Deferred debts 305.16 (1.09) - 304.07

Others - - - -
Sub total 5,613.86 (577.11) - 5,036.75
Total 4,773.25 654.76 282.70 5,710.71

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 167
 (₹ in Lakh)

PARTICULARS As at March 31, 2023 As at March 31, 2022

29B Current Tax Assets and Liabilities
Current Tax Assets 11,948.87 2,912.05
Total Current Tax Assets 11,948.87 2,912.05

Current Tax Liabilities - -

Total Current Tax Liabilities - -
For the year ended For the year ended
PARTICULARS
March 31, 2023 March 31, 2022
29C Tax Expense
i) Recognised in the Statement of Profit and Loss
Current Tax
In respect of the current year 12,236.66 21,498.84
In respect of prior years 538.70 154.72
Total 12,775.36 21,653.56
Deferred Tax
In respect of the current year 187.50 (654.75)
Total 187.50 (654.75)
ii) Recognised in Other comprehensive income
Tax Expense
In respect of the current year (60.45) 282.70
Total (60.45) 282.70
Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets
The Income Tax expense for the year can be reconciled to the accounting profit as follows

Profit before tax from continuing operations 48,180.35 70,991.25

Tax expense of amounts which are not deductible (taxable) in
calculating taxable income
Income tax expense calculated at 25.168% (FY 2021-22 : 25.168%) 12,126.03 17,867.08
Donations made during the year 0.25 0.22
Amount towards CSR activities 306.52 294.42
Interest due to MSME's 0.28 -
Impairment Loss 142.77 845.28
Others (339.19) 2,000.20
Interest payable u/s 234A, 234B, 234C - 491.65
Tax expense of amounts on which deduction is available in
calculating taxable income
Donations u/s 80G made during the year - -
Impact of deferred tax 247.95 (937.46)
Adjustment for current tax of previous years
Adjustments recognised in the current year in relation to the earlier 538.70 154.72
years
Income tax relating to items that will not be reclassified to profit/loss (60.45) 282.70
Income tax expense recognised in profit or loss 12,962.86 20,998.81
Income tax recognised in Other comprehensive income (60.45) 282.70
Income tax recognised in Other comprehensive income (60.45) 282.70

168 BHARAT
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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)
For the year ended For the year ended
PARTICULARS
March 31, 2023 March 31, 2022
30 Revenue from Operations
Sale of products
Finished Goods 2,20,115.67 2,29,809.12
Spares 16,104.75 18,015.01
Miscellaneous 2,233.48 2,244.27
LD refunded / (levied) by Customers # (3,073.90) 9,598.53
2,35,380.00 2,59,666.93
Sale of services*
Repairs and Overhauls 3,788.23 3,407.14
Training - -
Job Works 7,703.28 8,328.17
Miscellaneous 22.24 -
LD refunded / (levied) by Customers 9.12 (176.05)
11,522.87 11,559.26
Other operating revenue
Construction Contracts - -
Sale of Scrap 79.47 73.18
Deferred revenue on customer provided assets @ 1,021.06 2,654.32
Solar Power 874.01 772.60
Provisions no longer required, written back - 1,474.64
Other Claims 61.84 5,754.19
LD refunded / (levied) by Customers - (214.84)
2,036.38 10,514.09

Total 2,48,939.25 2,81,740.28

- Refer note 38(4): Construction Contracts
- Refer note 38(11): Retention Sales
- Refer note 38(20): Disclosures under Ind AS 115
- LD means Liquidated Damages
@ Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets
# Refer note 38(20)(C): Movement of Contract Assets and Liabilities
# Include LD levied on sale of products ₹ 6,081.34 Lakh (₹ 3,723.71 Lakh during the year 2021-22) adjusted against LD
refunded / reversed ₹ 3,007.44 Lakh (₹ 13,322.24 Lakh during the year 2021-22).
*Significant judgement:
Revenue:
- The company recognizes revenue on the basis of percentage of completion method where the customer simultaneously
receives the benefit.
- The percentage of completion is determined as proportion of cost incurred for the work performed up to the reporting date
to the total estimated cost.
- An expected loss is recognized immediately when it is probable that the total cost will exceed the total revenue.

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 169
 (₹ in Lakh)
For the year ended For the year ended
PARTICULARS
March 31, 2023 March 31, 2022
31 Other Income
Interest income on financial assets carried at amortised cost
Bank deposits 9,758.26 5,153.01
Others 1,417.91 1,222.15
11,176.17 6,375.16
Other non-operating income
Liabilities no longer required, written back 959.93 890.44
Liquidated Damages recovered from suppliers 4,306.21 4,077.57
Miscellaneous income (net) 435.18 373.39
5,701.32 5,341.40
Other gains and losses
Net foreign exchange gain / (Loss) (1,477.57) (277.04)
Fair value gain/(loss) on financial assets measured at Fair value through 130.24 (317.58)
profit and loss
Gain on disposal of property, plant and equipment 10.06 (0.90)
Gain on sale of Financial Assets Measured at Fair value through profit - -
and loss
(1,337.27) (595.52)

Total 15,540.22 11,121.04

32 Cost of Materials consumed

Cost of materials consumed 1,20,608.69 1,25,961.82
Direct expenses 424.77 374.73
1,21,033.46 1,26,336.55
Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

33 Changes in Inventories of Finished Goods and Work-in-progress

Opening Stock:
Finished goods 2,904.80 645.87
Work-in-progress 46,766.10 40,589.45
49,670.90 41,235.32
Closing Stock:
Finished goods 495.86 2,904.80
Work-in-progress 51,078.76 46,766.10
51,574.62 49,670.90
Net (Increase) / Decrease (1,903.72) (8,435.58)
Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

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 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

(₹ in Lakh)
For the year ended For the year ended
PARTICULARS
March 31, 2023 March 31, 2022
34 Employee Benefits Expense
Salaries and wages, including bonus 43,967.78 45,763.89
Contribution to provident and other funds 7,325.31 8,660.68
Staff welfare expenses 1,953.34 2,641.70
Total 53,246.43 57,066.27
Refer note 38(3): Employee Benefit obligations and 38(8): Related party transactions

35 Finance Costs
Interest expense 314.62 203.41
Other finance costs 139.02 139.02
Total 453.64 342.43

36 Depreciation and Amortisation expense

Depreciation of property, plant and equipment 5,769.50 6,763.26
Amortisation of right of use asset 196.29 197.47
Amortisation of intangible assets 1,760.00 2,074.74
Total 7,725.79 9,035.47
Refer note 38(27): Impact due to change in Accounting policy on Customer financed assets

37 Other Expenses
Shop Supplies 466.22 482.11
Power and Fuel 2,051.50 2,084.29
Water Charges 397.10 451.98
Travelling # 1,569.23 1,348.13
Repairs:
Buildings 1,274.89 1,422.50
Plant, Machinery and Equipment 1,533.60 1,122.26
Furniture and Equipment 132.72 144.06
Vehicles 18.88 17.49
Others 31.99 26.99
Vehicle Expenses - Petrol and Diesel 66.06 71.47
Loose Tools and Equipment 84.57 100.35
Insurance 553.76 689.88
Rates and Taxes 167.48 207.91
Postage, Telegrams, Telex and Telephones 135.05 125.85
Printing and Stationery 63.63 62.87
Publicity 1,008.39 191.57
Advertisement 133.38 91.41
Bank Charges 101.52 132.49
Legal Expenses 14.88 2.90
Donations 1.00 0.89
Write off - Others - -
Auditors' Remuneration: (refer note (i) below) 21.80 16.69

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DYNAMICS LIMITED 171
 (₹ in Lakh)
For the year ended For the year ended
PARTICULARS
March 31, 2023 March 31, 2022
Security Arrangements 5,246.11 4,618.02
Computer Software and Development 2.63 8.32
Entertainment 36.21 1.25
Courtesy - -
Sitting Fee paid to Directors 15.80 5.75
Sitting Fee paid to Independent External Monitors 6.00 3.50
CSR & Sustainable Development Expenditure 1,217.89 1,169.80
Provision for Replacement, Warranty and Batch Rejections 1,264.84 2,789.03
Provision for Redundancy 1,152.38 397.07
Provision for Onerous Contract - -
Provision Others 204.97 7,298.85
Miscellaneous Operating Expenses:
Testing of Materials 3,219.15 3,282.60
Proof Firing Expenses 12.25 20.82
Manpower Hiring Charges 1,020.68 1,141.73
Material Handling Charges 979.63 1,014.80
Hiring of Vehicles 921.30 781.25
D and D Expenses 7,364.11 424.76
Others 3,251.92 2,414.72
Total 35,743.52 34,166.36
# Includes Directors' Travelling Expenses 151.28 67.53
Notes:
i) Auditors' Remuneration comprises Fee:
Particulars
For Statutory Audit * 15.00 10.00
For Tax Audit 1.25 1.25
For other services 5.05 5.25
For reimbursement of expenses 0.50 0.19
Total Auditors' remuneration 21.80 16.69
* 2022-23 fee Include ₹ 2.50 Lakh pertaining to FY 2021-22
ii) Refer note 28: Current Provisions
iii) Refer note 38(5): Expenditure relating to Research and Development.
iv) Refer note 38(8): Related party transactions

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(₹ in Lakh)
Note 38: General Notes:
Statement of Compliances:
The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) [as notified under the section 133
of Companies Act, 2013 (the “Act”) read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015] and other relevant
provisions of the Act.
38(1) Impairment Loss - Exceptional Items
The Company tests for impairment at least annually and more frequently when there is an indication of impairment. An
impairment loss is recognized if the recoverable amount is lower than the carrying value.
The company has acquired 553 Acres 34 Guntas at Amravati on lease basis for one of its projects. One of the main condition
is, if the factory building and works are not completed within 60 months from the date of allotment, unless the time is
extended, the lease agreement may be cancelled and the lessor may take possession of the leasehold land together with
all the erections, if any, on the said land, without paying any compensation to the company. The period of extension last
extended was upto 5th April, 2019. As the project for which the lease was obtained has not been confirmed by Ministry
of Defence (MoD), the company could not commence / complete the activities envisaged in the lease agreement leading
to non compliance of the agreement. In the meantime, the company received a notice seeking reply as to why the action
provided in the lease agreeemnt should not be taken. Explaining the force majeure condition the company represented
to the state government for condonation of delay and extension of time. Pending receipt of extension of time period, the
company has provided for impairment amounting to ₹ 3358.57 lakh during 2021-22 in respect of the leasehold land and
the infrastructure created therein as detailed below.
There is no impairment loss / reversal during the year 2022-23. Impairment Loss recignised during the year 2021-22 is as
below:
Property, Plant and Right of use
PARTICULARS Equipment assets Total
(Note - 1) (Note - 4)
Gross Carrying Amount as at March 31, 2022 1,090.02 3,477.17 4,567.19
Accumulated Depreciation / Amortisation as at March 31, 2022 949.29 259.34 1,208.63
(Before Impairment Loss)
Net Carrying Amount as at March 31, 2022 (Before Impairment Loss) 140.73 3,217.83 3,358.56
Recoverable Amount* - - -
Impairment Loss 140.73 3,217.83 3,358.56
* Recoverable amount is calculated as higher of fair value less costs of disposal and value in use. Fair value less costs of disposal
is nil as the assets are leased assets. In view of uncertainities in generation of cashflows, value in use is considered as Nil.
38(2) Earnings per share
(i) For continuing operations:
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
Profit after tax 35,217.49 49,992.44
Basic:
Number of shares outstanding at the end of the year 18,32,81,250 18,32,81,250
Weighted average number of equity shares 18,32,81,250 18,32,81,250
Earnings per share (INR) 19.22 27.28
Diluted:
Effect of potential equity shares on employee stock options outstanding - -
Weighted average number of equity shares outstanding 18,32,81,250 18,32,81,250
Earnings per share (INR) 19.22 27.28
Note: EPS is calculated based on profits excluding the other
comprehensive income.
(ii) For discontinuing operations:
There are no discontinuing operations.
(iii) For continuing and discontinuing operations:
Refer to the table (i)

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 (₹ in Lakh)
38(3) Employment Benefit obligations
(i) Post-employment obligations- Gratuity
The company provides for gratuity for employees in India as per the payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees
last drawn basic salary per month computed proportionately for 15 day's salary multiplied for the number of years of service. The
gratuity plan is a funded plan and the Company makes contributions to a separate trust. The company does not fully fund the liability
and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
Gratuity
Changes in the Present value of Obligation

Particulars March 31, 2023 March 31, 2022

Present value of Obligation at the begining of the year 22,212.50 22,860.30
Current service cost 548.33 549.23
Interest expense or cost 1,489.23 1,453.41
Remeasurements
(Gain)/loss from change in demographic assumptions 181.98 76.59
(Gain)/loss from change in financial assumptions (293.66) (407.33)
Experience (gains)/loss 221.69 80.15
Benefit paid (2,592.76) (2,399.85)
Present value of Obligation at the end of the year 21,767.31 22,212.50
Changes in the Fair value of Plan Assets

Fair value of Plan Assets at the begining of the year 22,591.12 23,324.09
Interest income 1,516.18 1,484.53
Employer contributions - -
Benefit payments (2,592.76) (2,399.85)
Remeasurements - Return on Assets (Excluding Interest Income) 187.18 182.35
Fair value of Plan Assets at the end of the year 21,701.72 22,591.12

Expenses recognised during the period

In the Statement of Profit and Loss 521.38 518.11

In Other Comprehensive Income (77.17) (432.94)
Total 444.21 85.17
The net liability disclosed above relates to funded and unfunded plans are as follows:

Present value of funded obligations 21,767.31 22,212.50

Fair value of plan assets 21,701.72 22,591.12
Deficit of funded plans 65.59 (378.62)

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The significant actuarial assumptions were as follows: (₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

Discount rate 7.46% 7.12%
Salary escalation 6.00% 6.00%
Attrition rate 5.52% 4.18%
Sensitivity analysis

Defined Benefit Obligation 21,767.31 22,212.50

Discount rate:(% change compared to base due to sensitivity)
Increase : +1% 20,954.47 21,283.58
Decrease: -1% 22,658.51 23,235.75
Salary Growth rate:(% change compared to base due to sensitivity)
Increase : +1% 22,201.15 22,711.45
Decrease: -1% 21,320.06 21,699.76
Attrition rate: (% change compared to base due to sensitivity)
Increase : +1% 21,891.44 22,341.68
Decrease: -1% 21,633.34 22,073.42
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is
unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit
obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the
projected unit credit method at the end of the reporting period) has been applied as and when calculating the defined benefit liability
recognised in the balance sheet.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
The major categories of plans assets are as follows:

Central government security 5,332.82 5,551.37

State government security 9,216.42 9,594.13
NCD/ Bonds 4,830.45 5,028.41
Equity 1,397.45 1,454.72
Fixed deposit 73.42 76.43
CBLO 621.58 647.05
Loans 3.06 3.19
Other approved security 226.52 235.80
21,701.72 22,591.10

Defined benefit liability and employer contributions

The Gratuity Trust has purchased insurance policy to provide for payment of gratuity to the employees. Every year, the insurance
company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising
as a result of such valuation is funded by the Company. The company considers that the contribution rate set at the last valuation
date is sufficient to eliminate the deficit over the agreed period and that regular contributions, which are based on service costs will
not increase significantly.

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DYNAMICS LIMITED 175
 (₹ in Lakh)
The expected cash flows over the next years is as follows:

Less than a Between Between

Particulars Total
year 2-3 years 4-5 years
31-Mar-23
Defined benefit obligation - Gratuity 4,306.81 7,704.14 5,603.76 17,614.71
Risk exposure
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Interest Rate Risk: The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.
Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.
Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement The effect of these decrements on the defined benefit obligation is not straight forward and depends
upon the combination of salary increase discount rate and vesting criteria. It is important not to overstate withdrawals because in
the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service
employee.
(ii) Provident Fund
Provident Fund Trust of the Company has to declare interest on Provident Fund at a rate not less than that declared by the Employees’
Provident Fund Organisation. In case the Trust is not able to meet the interest liability, Company has to make good the shortfall. This
is a defined benefit plan and the Company has got the same acturially valued.
Company has provided an amount of Nil (₹ 845.10 lakhs during 2021-22) towards interest shortfall of the provident fund trust for
the current year which has been recognised in Statement of Profit and Loss.
In view of the uncertainities regarding recoverability of certain instruments made by the PF Trust, during the year 2021-22 the
company has provided ₹1556.20 lakhs being change due to remeasurement of defined benefit plans which was recognised in other
comprehensive income. During the year 2022-23, an amount of ₹ 163.03 lakhs has been reversed due to realisation of higher
amounts than the provision made earlier.

March 31, 2023 March 31, 2022

Acturial Assumptions
(Funded) (Funded)
Discount rate 7.46% 7.12%
Rate of escalation in salary 6.00% 6.00%
Interest Rate Guarantee on Provident Fund * 8.10%
Interest Rate declared by BDL PF Trust * 8.10%
* Yet to be notified

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(₹ in Lakh)
(iii) Compensated absences
The leave obligations cover the company’s liability for earned leave.
The company maintains a funded plan for the purpose of compensated absences. The company recognises the obligations net of
planned assets as per the actuarial valuation. A summary of employee benefit obligation and planned assets is presented below:

Particulars March 31, 2023 March 31, 2022

The Actuarial Liability of Accumulated absences of the employees of the Company 14004.97 13343.39
Less: Plan assets 13087.74 13561.92
Net obligation / (Asset) 917.23 (218.53)
Significant assumptions:
Discounting Rate 7.46% P.A. 7.12% P.A.
Salary escalation Rate 6.00% 6.00%
Retirement Age 60 YEARS 60 YEARS
(iv) Post Retirement Medical Scheme

a) Contributions made to Post Superannuation Medical Benefits for the Employees 839.40 1,523.82
retired before 01 Jan 2007- PSMB-I
b) Contributions made to Post Superannuation Medical Benefits for the Executives 342.11 328.39
retired after 01 Jan 2007- PSMB-II

c) Contributions made to Post Superannuation Medical Benefits for the Non- 460.46 448.30
Executives retired after 01 Jan 2007-PSMB-III

38(4) Construction contracts:

Following disclosures are made relating to Revenue Recognition of Construction Contracts.
Methods of recognising contract revenue:
Percentage of completion method is used to determine the contract revenue recognised in the period.
Method used to determine stage of completion of contract:
Proportion of contract costs incurred for work performed to the estimated total cost of contracts is used to determine the stage of
completion.

Contract Revenue recognised during the year - (72.58)

Aggregate amount of cost incurred - 42,266.41
Profit Recognised - 3,273.51
Amount of retention money due - -
Amount of advance received and outstanding - -
- Construction contracts concluded during 2021-22.

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 (₹ in Lakh)
38(5) Expenditure relating to Research and Development:
Expenditure relating to Research and Development including product improvement financed by the Company during the year charged
to natural heads of account :
(₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

Being in the nature of Revenue expenditure 12517.50 4706.90
Being in the nature of Capital expenditure (Assets Capitalised) 2685.37 107.71
38(6) Contingent Liabilities & Contractual Commitments:
(₹ in Lakh)

Contingent Liabilities Not Provided for: March 31, 2023 March 31, 2022
Outstanding Letters of Credit and Guarantees:
(i) Letters of Credit 239.81 696.23
(ii) Guarantees and Counter Guarantees 9,643.19 9,689.54
Total 9,883.00 10,385.77
Claims / Demands against the Company not acknowledged as Debt:
(i) PSUs - -
(ii) Sales Tax 21,310.03 21,310.03
(iii) Service Tax 1,883.80 4,239.31
(iv) Income Tax 1,737.48 95.64
(v) Excise Duty 5,306.33 5,306.33
(vi) Others 1,353.32 1,172.29
Total 31,590.96 32,123.60
Contractual Commitments:
(A) Estimated amount of contracts remaining to be executed on Capital Account and
not provided for, is
(i) Property, Plant & Equipment 4,200.02 4,642.48
(ii) Investment Property - -
(iii) Intangible Assets - -
(B) Contractual Commitment towards LD for the deliverables due at the end of the 15,060.96 3,118.06
year will be accounted as and when corresponding revenue is recognised.
Total 19,260.98 7,760.54

38(7) Details of short closed projects:

Out of the advances of ₹ 36234.42 Lakh (as at March 31,2022 ₹ 36234.42 Lakh) received from the customers, in respect of five
contracts/ indents and one LOI which are short closed, the Company has made payments to suppliers for procurement of Special Tools
and Equipment and Inventory. Against these payments, Special Tools and Equipment (Note 1) include an amount of ₹ 114.05 Lakh
(as at March 31,2022 ₹114.05 Lakh), Current Assets (Note 10-16) comprises an amount of ₹ 11041.65 Lakh (as at March 31,2022
₹ 11041.65Lakh) in Advances to vendors and ₹ 8350.75 Lakh (as at March 31,2022 ₹ 9446.00 Lakh) in Inventories, total amounting
to ₹ 19506.45 Lakh (as at March 31,2022 ₹ 20601.70 Lakh). As these assets had been acquired/expenditure had been incurred by
the company based on firm orders/ LOI and out of the funds provided by the customer, no loss devolves on the company on account
of long outstanding advances and non-moving Special Tools and Inventory. Hence, no provision is considered necessary. Further, in
respect of these short closed Indents/contracts/LOI, the company approached the customers for compensation of ₹ 1908.11 lakh (as
at March 31,2022 ₹ 1908.11 lakh) being the net amount of expenditure after adjustment of the available advance. Hence, for want of
finalisation of the amount from the Government/ Customers, no claim/ impact on profit has been accounted in the books.

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38(8) Related party transactions

Name of Key managerial personnel

Shri Cmde Siddharth Mishra (Retd), CMD Shri P Radhakrishna, Director (Production) & Addl. Charge CMD
(Upto 31 March 2023) (w.e.f 01 April 2023)
Shri N P Diwakar, Director (Technical) Shri N Srinivasulu, Director (Finance)
(Upto 31 August 2022)
Shri Cmde A Madhavarao, Director (Technical) Shri Sunil Chintaman Mone, Independent Director (w.e.f 24
(w.e.f 02 January 2023) December 2021)
Shri Nandakumar Subburaman, Independent Director (w.e.f 24 Prof. (Dr.) Sanghamitra Mishra, Independent Director (w.e.f 27
December 2021) December 2021)
Shri Rajendra Singh Shekhawat, Independent Director (w.e.f 28 Dr. Pawan Sthapak, Independent Director (w.e.f 24 December
December 2021) 2021)
Shri Jashwant Lal, Independent Director Shri N Nagaraja, Company Secretary
(w.e.f 24 February 2023)
(₹ in Lakh)

Key management personnel compensation March 31, 2023 March 31, 2022
Short - term employee benefits 226.02 248.47
Post - employment benefits 46.97 39.94
Long - term employee benefits - -
Sitting fee to Independent Directors 15.80 5.75
Total compensation 288.79 294.16

38(9) Capital Management

a) Risk management:
The Company has equity capital and other reserves attributable to shareholders as only source of capital and the company doesn’t
have borrowings or debts.
b) Dividends
(₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

(i) Interim dividend for the year ended March 31, 2023 of ₹ 8.15 (March 31,2022 of ₹ 14,937.42 13,379.53
7.30) per fully paid equity share
(ii) Dividends not recognised at the end of reporting period: 2,199.38 1,832.81
As at the year end March 31, 2023 the directors have recommended the payment of
a final dividend of ₹ 1.20 per fully paid equity share (March 31, 2022: ₹ 1.00). The
proposed dividend is subject to the approval of shareholders in the ensuing annual
general meeting.
Events occurring after the reporting period:
Refer above note for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing
annual general meeting.
38(10) Confirmation of Balances:
Letters requesting Confirmation of Balances have been sent in respect of Debtors, Creditors, Claims Receivable, Materials with
Contractors / Sub-Contractors, Advances, Deposits and others. Based on the replies wherever received, reconciliations / provisions /
adjustments are made as considered necessary.

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DYNAMICS LIMITED 179
 (₹ in Lakh)
38(11) Retention Sales:
The value of the retention sales (i.e., goods retained with the company at the customers’ request and at their risk) included in
gross turnover during the year is ₹ 90,485.78 lakh (₹ 90,187.51 lakh during the year 2021-22). Out of which ₹ 57,547.95 lakh
(₹ 59653.86 lakh during 2021-22) pertains to contracts on FOR-Destination basis. The contract provides for retention of goods in
certain circumstances mentioned therein. In respect of ₹ 32937.83 lakh, though the contracts are on FOR-destination basis, the
customer has allowed the company to recognise a sale and hold the material.
38(12) Charges registered:
Company has registered floating charge with State Bank of India and Union Bank of India to the extent of ₹ 60,000.00 lakh (as at
March 31,2022 ₹ 41,010.00 lakh) on current assets.
38(13) Operating Cycle:
As per the requirement of Schedule III to the Companies Act, 2013, the operating cycle has been determined at the product level as
applicable.
38(14) Contingent Assets: (₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

Contingent Assets - -

38(15) Fair Value Measurement

Fair value As at March 31, 2023 As at March 31, 2022

Particulars hierarchy Notes Amortised Amortised
Level Cost FVTPL Cost FVTPL
Cost Cost
A. Financial Assets
a) Measured at amortised cost
i) Cash and cash equivalents 3 12 105,288.37 105,288.37 - 26,504.37 26,504.37 -
ii) Other bank balances 3 13 280,598.00 280,598.00 - 163,449.00 163,449.00 -
iii) Loans 3 7, 14 376.02 376.02 - 387.43 387.43 -
iv) Other financial assets 3 8, 15 138,188.58 138,188.58 - 128,907.46 128,907.46 -
iv) Trade receivables 3 11 18,457.27 18,457.27 - 30,416.13 30,416.13 -
Sub - total 542,908.24 542,908.24 - 349,664.39 349,664.39 -
b) Mandatorily measured at fair
value through profit or loss
i) Investment in equity 3 6 53.60 - - 53.60 -
instruments in other
companies
ii) Deferred receivable 3 8, 15 2662.70 - 4,826.33 2,852.90 4,340.61
Sub - total 2,716.30 - 4,826.33 2,906.50 - 4,340.61
Total Financial Assets 545,624.54 542,908.24 4,826.33 352,570.89 349,664.39 4,340.61
B. Financial Liabilities
a) Measured at amortised cost
i) Lease liabilities 3 19, 24 520.75 520.75 652.71 652.71 -
iI) Trade payables 3 25 46,437.83 46,437.83 - 55,246.98 55,246.98 -
iii) Other financial 3 20, 26 17,968.16 17,968.16 - 17,753.05 17,753.05 -
liabilities
Sub - total 64,926.74 64,926.74 - 73,652.74 73,652.74 -

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(₹ in Lakh)

Fair value As at March 31, 2023 As at March 31, 2022

Particulars hierarchy Notes Amortised Amortised
Level Cost FVTPL Cost FVTPL
Cost Cost
b) Mandatorily measured at
fair value through profit or
loss
i) Embedded Derivative 3 20,26 - - 3,350.89 - 2,789.70
financial liability
Sub - total - - 3,350.89 - - 2,789.70
Total Financial Liabilities 64,926.74 64,926.74 3,350.89 73,652.74 73,652.74 2,789.70

Fair Value Hierarchy

The following table presents the fair value hierarchy of assets and liabilities:

Particulars Level March 31, 2023 March 31, 2022

Financial Assets:
a) Measured at fair value through profit or loss
i)Investment in equity instruments in other companies 3 - -
ii)Deferred receivable 3 4,826.33 4,340.61
Financial liabilities:
a) Measured at fair value through profit or loss
i)Embedded Derivative financial liability 3 3,350.89 2,789.70
Fair value hierarchy:
Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:
Level 1: Quoted prices (unadjusted) in active market for identical assets or liabilities.
Level 2: Inputs other than quoted price including within level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices). The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If
significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs). If one or more of the
significant inputs is not based on observable market data, the instrument is included in level 3. This is the case with listed instruments
where market is not liquid and for unlisted instruments.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
• The fair value of unquoted equity instrument are determined with respect to the net worth of the company.
• During the year 2021-22, APGPCL i.e., the company in which BDL had invested in equity, received an adverse arbitration award.
The implementation of which is likely to erode the networth of APGPCL. Accordingly Fair value of the investment is considered
as ‘Nil’.
• The fair value of 45 years deferred credit and receivables is determined using foreign exchange rates as per the contract.

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BHARAT
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 (₹ in Lakh)
The resulting fair value estimates are included in level 3.
Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in level 3 items for the year ended 31 March 2023:

Particulars Unlisted equity shares Deferred receivable Embedded derivative liability

As at 31 March 2022 - 4,340.61 2,789.70
Gain/loss recognised in profit and loss - 880.46 771.53
Current maturity of Financial Instrument (394.74) (210.34)
As at 31 March 2023 - 4,826.33 3,350.89
Valuation inputs and relationships to fair value
The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value
measurements.

Fair value as at Significant

Particulars Sensitivity
March 31 2023 March 31, 2022 unobservable inputs
Unquoted - - Fair value of the A 1% increase in the fair value of the company
equity shares company would increase the non current investment by Nil
with a corresponding impact on profit and loss; a
decrease in the fair value of the company would
decrease the non current investment by Nil with a
corresponding impact on profit and loss.
Deferred 4,826.33 4,340.61 Rupee rate per A ₹ 1 increase in the SDR rate would increase the
receivable Special Drawings fair value by ₹ 53.46 lakh with a corresponding
Right (SDR Unit) impact on profit and loss; a ₹ 1 decrease in SDR
rate would decrease the fair value by ₹ 53.46 lakh
with a corresponding impact on profit and loss.
Embedded 3,350.89 2,789.70 Rupee rate per A ₹ 1 increase in the SDR rate would increase the
derivative Special Drawings fair value by ₹ 54.98 lakh with a corresponding
liability Right (SDR Unit) impact on profit and loss; a ₹ 1 decrease in SDR
rate would decrease the fair value by ₹ 54.98 lakh
with a corresponding impact on profit and loss.

38(16) Financial Risk Management:

The Company’s activities expose it to market risk, liquidity risk and credit risk. The analysis of each risk is as follows:
A) Credit risk
Credit risk arises from cash and cash equivalents, instruments carried at amortised cost and deposits with banks, as well
as credit exposures to customers including outstanding receivables.
(i) Credit risk management
A. Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks with high credit ratings
assigned by external agencies.
B. Credit risk on claims/refunds receivables, trade receivables and unbilled revenues are evaluated as follows:

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(₹ in Lakh)
(i) Year ended March 31, 2023:
(a) Expected credit loss for financial assets where general model is applied

Estimated gross Expected Carrying

Expected
Particulars Asset group carrying amount probability of amount net
credit loss
at default default of provision
Financial assets for which credit risk has not Claims/ 9532.33 0.23% (21.47) 9,510.86
increased significantly since initial recognition refunds
- Loss allowance measured at 12 month expected receivable
credit losses Loans 376.02 - - 376.02

(b) Expected credit loss for trade receivables and unbilled receivable under simplified approach

Less than or equal to

Particulars More than 6 months Total
6 months
Gross carrying amount 138872.50 5750.12 144622.62
Expected credit loss rate 0% 0% 0%
Expected credit loss (loss allowance provision) - - -
Carrying amount of trade receivables 138872.50 5750.12 144622.62

(ii) Year ended March 31, 2022:

(a) Expected credit loss for financial assets where general model is applied

Estimated
Expected Carrying
gross carrying Expected
Particulars Asset group probability amount net
amount at credit loss
of default of provision
default
Financial assets for which credit risk has not Claims/ refunds 7477.87 0.29% (21.47) 7,456.40
increased significantly since initial recognition receivable
- Loss allowance measured at 12 month expected
credit losses Loans 387.43 - - 387.43

(b) Expected credit loss for trade receivables and unbilled receivable under simplified approach

Less than or equal to 6 More than 6

Particulars Total
months months
Gross carrying amount 145426.27 4109.34 149535.61
Expected credit loss rate 0% 0% 0%
Expected credit loss (loss allowance provision) - - -
Carrying amount of trade receivables 145426.27 4109.34 149535.61

(iii) Reconciliation of loss allowance: (₹ in Lakh)

Trade receivables Claims/refunds

Particulars
and unbilled revenue receivable
Loss allowance as at March 31, 2022 - (21.47)
Add/less - -
Loss allowance as at March 31, 2023 - (21.47)

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 (₹ in Lakh)

(iv) Significant estimates and judgements:

Impairment of financial assets:
The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss
rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the
company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
B) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and
to close out market positions. Company’s treasury maintains flexibility in funding by maintaining availability under deposits in banks.
Management monitors cash and cash equivalents on the basis of expected cash flows.
(i) Financing arrangements
The company has access to the following undrawn borrowing facilities at the end of the reporting period:
(₹ in Lakh)

Particulars March 31, 2023 March 31, 2022

Expiring within one year (bank overdraft and other facilities) 1500.00 1500.00
(ii) Maturities of financial liabilities

Contractual maturities of financial liabilities as at Less than Between 1 Between 2 year Above 5
Total
March 31, 2023 12 months and 2 years and 5 years years
Non-derivative
Lease liabilities 146.64 162.61 211.50 - 520.75
Deferred Credit towards 45 years Component 195.60 181.10 466.73 769.10 1612.53
Deposits 1,274.48 - - - 1274.48
Creditors for expenses 7,716.12 - - - 7716.12
Employee benefits payable 6,835.04 - - - 6835.04
Capital works 255.87 - - - 255.87
Others 274.12 - - - 274.12
Derivative
Embedded derivative liability (Deferred liability) 405.95 210.36 631.08 2103.50 3350.89

Contractual maturities of financial liabilities as at Less than 12 Between 1 Between 2 year Above 5
Total
March 31, 2022 months and 2 years and 5 years years
Non-derivative
Lease liabilities 131.96 146.64 374.11 - 652.71
Deferred Credit towards 45 years Component 195.60 181.10 466.73 830.76 1,674.19
Deposits 1,413.42 - - - 1,413.42
Creditors for expenses 6,828.34 - - - 6,828.34
Employee benefits payable 6,388.29 - - - 6,388.29
Capital works 1,146.22 - - - 1,146.22
Others 302.59 - - - 302.59
Derivative
Embedded derivative liability (Deferred liability) 357.73 162.14 486.42 1,783.41 2,789.70

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(₹ in Lakh)

C) Market risk
(i) Foreign currency risk
The company operates in a business that exposes it to foreign exchange risk arising from foreign currency transactions, primarily
with respect to the USD, Euro, GBP, CHF and SEK. Foreign exchange risk arises from future commercial transactions and recognised
liabilities denominated in a currency that is not the company’s functional currency (INR). The risk is measured through a forecast of
highly probable foreign currency cash flows. The company is eligible for exchange rate variation upon settlement of foreign exchange
liabilities for most of the sales contracts. Hence, the company is protected against the foreign currency risk.
(FE in Lakh)

March 31, 2023

Particulars
USD EURO GBP CHF SEK
Foreign currency liabilities
- Payables 50.75 10.80 - - -
Foreign currency assets
- Receivables 74.81 - - - -
Net Exposure (24.06) 10.80 - - -

March 31, 2022

Particulars
USD EURO GBP CHF SEK
Foreign currency liabilities
- Payables 88.91 12.56 - - -
Foreign currency assets
- Receivables 73.33 - - - -
Net Exposure 15.58 12.56 - - -

(ii) Sensitivity
The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments
and from foreign forward exchange contracts:
(₹ in Lakh)

Impact on Profit
Particulars
March 31, 2023 March 31, 2022
Sensitivity
INR/USD – Increase by 1% (19.39) 12.79
INR/USD – Decrease by 1% 19.39 (12.79)
INR/EURO – Increase by 1% 9.74 10.70
INR/EURO – Decrease by 1% (9.74) (10.70)
INR/GBP – Increase by 1% - -
INR/GBP – Decrease by 1% - -
INR/CHF – Increase by 1% - -
INR/CHF – Decrease by 1% - -
INR/SEK – Increase by 1% - -
INR/SEK – Decrease by 1% - -

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 (₹ in Lakh)

38(17) Segment information:

As the Company is engaged in defence production, exemption was granted from applicability of Accounting standard on Segment
reporting under Sec 129 of Companies Act 2013 vide Notification dated 23rd February 2018 of Ministry of Corporate Affairs.
38(18) Foreign Exchange Exposure:
Pursuant to the announcement of ICAI requiring the disclosure of “Foreign Exchange Exposure”, the major currency-wise exposure as
on 31 March 2023 (As at 31 March, 2022 are shown in brackets) given below.
(₹ in Lakh)

Payables Receivables Contingent Liability

Currency Foreign Indian Rupee Foreign Indian Rupee Foreign Indian Rupee
Currency Equivalent Currency Equivalent Currency Equivalent
USD 50.75 4185.72 74.81 6,125.06 68.71 5649.73
(88.91) (6,808.83) (73.33) (5,529.77) (91.82) (6,930.72)
EURO 10.80 973.64 - - - -
(12.56) (1,069.97) - - (0.99) (83.96)
GBP - - - - - -
- - - - - -
CHF - - - - - -
- - - - - -
SEK - - - - - -
- - - - - -
Total (₹) 5159.36 6125.06 5649.73
(7,878.80) (5,529.77) (7,014.68)
38(19) Grant for Solar Plant:
The Company has implemented two Solar Plants of 5 MW each under Jawahar Lal Nehru National Solar Mission (JNNSM) scheme.
Viability Gap Fund (VGF) is accounted based on project cost as per the contracts. An amount of ₹ 1545.89 Lakhs is accounted as VGF
and disclosed under Deferred Revenue (Note No. 22) in the books of the Company. Deferred Revenue @4% p.a amounting ₹ 61.83
Lakhs is recognized as from Solar Plant.
38(20) Disclosures under Ind AS 115: Revenue from contracts with customers
A Satisfaction of performance obligation
i. In majority of the contract performance obligation is satisfied “at a point in time” which is primarily determined on customer
obtaining control of the asset. Performance obligation in respect of contract involving supply , Installation and commissioning
of complex system is recognised “over a period of time”
ii. Under “Bill and hold” arrangement performance obligation is satisfied on unconditional appropriation of the goods to the
contract on acceptance by the customer.
iii. Company’s Contract normally do not contain significant financial component and any advance payment received and /or
amount retained by customer is with intention of protecting either parties to the contract.
iv. Variable consideration primarily consist of amount receivable/reimbursable against foreign exchange variation clause and
liquidated damages. The amount of revenue recognised in respect of the same is determined based on the methodology
specified in the contract . The amount is recognised as revenue based on contractual terms.
v. The company’s turnover mainly includes supply of missiles and allied defence equipments.
vi. Warranties provided are primarily in the nature of performance warranty.

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(₹ in Lakh)

vii. The company normally uses the input method to recognise revenue is respect of contracts in which performance obligation
are satisfied over a period of time. For arriving at the quantum of revenue to be recognised the percentage of completion
method is adopted where in the percentage of actual cost incurred to total estimated cost is applied to the contract price
for arriving at the quantum of revenue to be recognised. The company’s contract (other than AMC) in respect of which
revenue is recognised over a period of time typically involves multiple activities of different nature like construction of
building, supply and installation of equipments etc. Due to this it is not possible to quantify in physical terms the quantum
of work done (i.e., output) reliably . Where as, under input method , the cost incurred in respect of these varied activities
can be captured and compared to the total estimated cost to be incurred (which can be estimated reliably) , for arriving at
the percentage of completion. In case of AMC contracts, output method is used to recognise revenue where passage of
time is the criteria for satisfaction of performance obligation.
viii. For revenue recognition in respect of performance obligation satisfied at a “point in time” the following criteria is used for
determining whether customer has obtained “Control on asset”
• Terms of delivery as per the contract
• Customer has legal title to the asset
• The entity has transferred physical possession of the asset
• Customer has accepted the asset
• Entity has the present right to payment for the asset
ix. Transaction price is typically determined based on contract entered into with customer. Allocation of transaction price in
respect to multiple obligations is based on relative standalone selling price which is arrived at based on the latest contract
available for similar item sold.
B Break up of revenue recognised against contracts with customers (₹ in Lakh)

Exports
(including
Particulars Govt of India Others Total
Channel
Partner)

For the year ended March 31, 2023

Sale of Products 156,545.20 9,718.87 69,115.93 235,380.00
Sale of Services 7,014.48 22.24 4,486.15 11,522.87
Total 163,559.68 9,741.11 73,602.08 246,902.87
For the year ended March 31, 2022
Sale of Products 179,206.97 298.37 80,161.59 259,666.93
Sale of Services 5,139.18 - 6,420.08 11,559.26
Total 184,346.15 298.37 86,581.67 271,226.19

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 (₹ in Lakh)
C Movement of Contract Assets and Contract Liabilities

Contract Assets Contract Liabilities

Particulars As at As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Opening Balance (A) 119,119.48 115,251.21 215,396.45 188,107.60
Additions
Against Sales recognised during the year 77,040.77 103,272.80
Receipt of advance from Customer during the year 361,562.74 178,679.34
Change in transaction price recognised during the 0.07
year
Others ( if any ) 3,034.65 7,612.29 438.23
Total - (B) 80,075.42 110,885.09 362,000.97 178,679.41
Deductions
Contract liability adjusted against- Revenue 80,822.90 68,645.73
recognised during the year out of Opening balance

Contract liability adjusted against- Revenue 71,571.63 81,904.10

recognised during the year out of Current year
balance
Conversion of Contract Asset to Trade receivable 73,029.55 107,016.82
Impairment of Contract Asset if any*
Write back of Contract Liability if any
Change in transaction price recognised during the
year
Others (if any) 3.93 840.73
Total - (C) 73,029.55 107,016.82 152,398.46 151,390.56
Grand Total ( Closing Balance ) D = ( A+B-C) 126,165.35 119,119.48 424,998.96 215,396.45
* Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.
Advance received from customer are classified as contract liability and Progressively adjusted on completion of performance obligation
.Balance amount receivable after adjusting advance is classified as Trade Receivable.
Amount withheld by customer in respect to completed Performance obligation due to linking of payment with completion of other
Performance obligations in the contract is classified as Contract Asset .
D Value of remaining Performance Obligations
Unrecognised revenue from contracts with customer which are partially satisfied or unsatisfied

More than 3
Particulars Total Amount Within a Year 1 - 2 Years 2 - 3 Years
Years
Unexecuted order value as on 2,005,400.00 326,000.00 353,500.00 406,200.00 919,700.00
31.03.2023*
* The amount is subject to LD of ₹ 15060.96 lakh

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(₹ in Lakh)
E Reconciliation of revenue recognised in Statement of Profit and Loss with contract Price

For the year ended For the year ended

Particulars
March 31, 2023 March 31, 2022
Revenue as per Statement of P&L Account
Sale of Products 235,380.00 259,666.93
Sale of Services 11,522.87 11,559.26
Total (a) 246,902.87 271,226.19
Add/ Less adjustment to contract price
FE variation claim (8.88) -
Incentives, performance bonus received - -
Discount, rebate offered - -
Price concession offered - -
LD levied by customers 6,098.06 3,899.77
LD refunded by customers (3,033.29) (13,322.24)
Others if any - -
Total adjustment (b) 3,055.89 (9,422.47)
Contract price (a + b) 249,958.76 261,803.72
F Movement of Trade Receivable for 2022-23

Particulars Sale of Products Sale of Services Total

Opening Balance Net Debtors (A) 24,949.06 5,467.07 30,416.13
Additions
Against Sales recognised during the year 235,840.14 5,860.61 241,700.75
Conversion of Contract Asset to Trade receivable 67,231.27 5,798.28 73,029.55
Change in transaction price recognised during/previous year - - -
Others ( if any ) 23.50 62.61 86.11
Total - (B) 303,094.91 11,721.50 314,816.41
Deductions
Collection made during the years 162,818.49 11,562.25 174,380.74
Advance adjusted during the year out of revenue recognised 150,891.31 1,503.22 152,394.53
Impairment of Debtors ( Provisions)* - - -
Change in transaction price recognised during/previous year - - -
Others (if any) - - -
Total -(C) 313,709.80 13,065.47 326,775.27
Grand Total ( Closing Balance ) D = ( A+B-C) 14,334.17 4,123.10 18,457.27

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 (₹ in Lakh)
Movement of Trade Receivable for 2021-22

Particulars Sale of Products Sale of Services Total

Opening Balance Net Debtors (A) 24,834.90 7,434.37 32,269.27
Additions
Against Sales recognised during the year 213,059.27 9,176.14 222,235.41
Conversion of Contract Asset to Trade receivable 102,766.47 4,250.35 107,016.82
Change in transaction price recognised during/previous year - - -
Others ( if any ) 47.06 23.42 70.48
Total - (B) 315,872.80 13,449.91 329,322.71
Deductions
Collection made during the years 166,461.20 13,347.32 179,808.52
Advance adjusted during the year out of revenue recognised 148,549.84 1,999.99 150,549.83
Impairment of Debtors ( Provisions)* - - -
Change in transaction price recognised during/previous year - 69.90 69.90
Others (if any) 747.60 - 747.60
Total -(C) 315,758.64 15,417.21 331,175.85
Grand Total ( Closing Balance ) D = ( A+B-C) 24,949.06 5,467.07 30,416.13
* Impairment is tested as per the accounting policy 15. The company has assessed that there are no indicators of impairment.
G Payment Terms from the customer comprises of advances and stage payments which differs from contract to contract.

38(21) Additional Regulatory Information:

A Title deeds of Immovable Properties not held in name of the Company

Whether title deed

Title
holder is a promoter,
Relevant line Gross deeds Property Reason for not being
Description of item of director or relative
item in the carrying held held since held in the name of
property of promoter/director
Balance sheet value in the which date the company
or employee of
name of
promoter/director
Freehold Land Land at Ibhrahimpatnam 7,965.16 TSIIC No 2/16/2017 In the process of
(632 Acres 16.50 Guntas) registration.
Freehold Land Land at Kanchanbagh 28.42
Pursuing with
(146 Acres 32 Guntas)
authorities for
DMRL No 10/19/1972
Investment Land at Kanchanbagh 0.97 incorporation in
Property (5 Acres 1 Gunta) revenue records

Right of use Land at Visakhapatnam - BDL No 3/2/2011 Lease deed is

assets (3 Acres 25 Guntas) executed but yet to
be registered.

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(₹ in Lakh)
B The fair value of investment property is not based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. However, the same is being calculated as per the records of Registration
Department of State Government.
C Company has not revalued any of its Property, Plant and Equipment or Intangible Assets during the current reporting period.
D Company has not granted any Loans or Advances in the nature of loans to any of its promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person.
E Capital Work-in-Progress (CWIP) (₹ in Lakh)
(a) CWIP Aging Schedule

Amount in CWIP for a period of

CWIP Less than More than Total
1-2 years 2-3 years
1 year 3 years
As at 31 March, 2023
(i) Projects in progress 5,280.75 1,483.93 482.89 187.09 7,434.66
(ii) Projects temporarily suspended
Total 5,280.75 1,483.93 482.89 187.09 7,434.66
As at 31 March, 2022
(i) Projects in progress 2760.67 547.32 657.60 107.59 4,073.18
(ii) Projects temporarily suspended
Total 2,760.67 547.32 657.60 107.59 4,073.18

(b) CWIP Completion schedule, whose completion is overdue or has exceeded its cost compared to its original plan:

To be completed in
CWIP
Less than 1 year 1-2 years 2-3 years More than 3 years

As at 31 March 2023 4,054.44 493.22 1.47 -

As at 31 March 2022 3,457.25 - - -

* In view of the sensitive nature of the projects and also on account of exemption granted on segmental reporting, project
wise details are not disclosed
F Key Financial Ratios:

As at 31 As at 31 %
Ratio Numerator Denominator Reason for Variance
March, 2023 March, 2022 Variance
(a) Current Ratio (in Total Current Total Current 3.45 2.14 61.2% Increased due to
times) Assets Liabilities higher bank balances
on account of
advances against new
orders received during
the year
(b) Debt-Equity -
Ratio
Not Applicable as the company has no debt.
(c) Debt Service -
Coverage Ratio

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 (₹ in Lakh)
As at 31 As at 31 %
Ratio Numerator Denominator Reason for Variance
March, 2023 March, 2022 Variance
(d) Return on Net Profit after Average 11.28% 17.49% -36% Due to lower turnover
Equity Ratio (in taxes Shareholder's on account of supply
%) Equity chain disruptions and
change in product mix.
(e) Inventory Revenue from Average 1.43 1.85 -23% -
turnover ratio operations Inventory
(in times)
(f) Trade Revenue from Average Trade 10.19 8.99 13% -
Receivables operations Receivables
turnover ratio
(in times)
(g) Trade payables Purchases Average Trade 2.70 2.22 22% -
turnover ratio Payables
(in times)
(h) Net capital Revenue from Working 0.46 0.96 -52% Reduced due to
turnover ratio operations Capital reduction in turnover
(in times) and increase in
working capital mainly
on account of higher
bank balances.
(i) Net profit ratio Net Profit after Revenue from 14% 18% -21% -
(in %) taxes Operations
(j) Return on EBIT i.e., Profit Capital 15.41% 23.99% -36% Due to lower turnover
Capital before tax and Employed i.e., on account of supply
employed (in %) finance costs Networth + chain disruptions and
Deferred Tax change in product mix.
Liability (net)
(k) Return on Return to investor Time weighted 81.87% 67.76% 21% -
investment (in Investment
%)
G There are no proceedings initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made there under.
H Company has no borrowings from banks or financial institutions on the basis of security of current assets. Company is not
declared wilful defaulter by any bank or financial Institution or other lender.
I Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
J Company has no charges or satisfaction yet to be registered with ROC beyond the statutory period.
38(22) There are no transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act, 1961.

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(₹ in Lakh)
38(23) Corporate Social Responsibility (CSR):
For the year ended For the year ended
Particulars
March 31, 2023 March 31, 2022
(i) Gross amount required to be spent by the company 1,217.89 1,169.80
during the year
(ii) Amount of expenditure incurred during the year on
- Construction / acquisition of any asset: 153.24 328.20
- On purpose other than above 1,166.08 1,484.41
(iii) Shortfall at the end of the year out of the amount Nil Nil
required to be spent during the year
(iv) Total of previous years shortfall amounts Nil Nil
(v) Reason for shortfall Not Applicable Not Applicable
(vi) Nature of CSR activities undertaken by the Company Education, Healthcare, Skill Education, Healthcare, Skill
Development Development
(vii) Details of related party transactions Nil Nil
Unspent / Additional Utilisation Unspent /
(viii) Where a provision is made with respect to a liability (Surplus) provisions during the (Surplus)
incurred by entering into a contractual obligation, the Balance as at recognised year Balance as at
movements in the provision during the year shall be March 31, 2022 March 31, 2023
shown separately.
(5.75) 1217.89 1,319.32 (107.18)
38(24) Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
38(25) Impact of Russia-Ukraine war:
Due to the ongoing Russia-Ukraine war there are delays in receipt of certain electronic components and critical explosive
materials from OEMs which have impacted the performance during the year and company is exploring alternatives to mitigate
the impact.
38(26) Code on Social Security,2020:
The Code on Social Security , 2020 (Code) relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Official Gazette of Government Of
India. However, the date on which the Code will come into effect has not been notified. The Company will evaluate the
impact and will give appropriate impact in the financial statements in the period in which, the Code becomes effective.
38(27) Impact due to change in Accounting policy on Customer financed assets:
Hitherto the company has been recognising the revenue in respect of cutomer financed assets in proportion to the
depreciation. In view of the recent opinion of Expert Advisory Committee of ICAI on accounting treatment of assets funded
by customer, the company revised its accounting policy on customer financed assets. As per the opinion / revised policy,
the revenue in respect of funds received from the customer for the assets procured by the company should be recognised
as or when the control over the assets is transferred to the customer in line with the requirements of Ind AS 115. In respect
of assets funded by the customer but the company obtains control over such assets are treated as non-cash consideration
and revenue is recognised in proportion to the existing order quantity plus additional quantity, if any, for which orders are
anticipated on the date of receipt of the contract from customer. Existing contracts were reviewed and necessary changes
were made. Impact of change in accounting policy is tabulated below:

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BHARAT
DYNAMICS LIMITED 193
 (₹ in Lakh)
March 31 2023
Balance Sheet (extract) Note Increase/ March 31 2023
without adoption
as at 31 March 2023 No. (Decrease) as reported
of new policy
Assets
Property, Plant and Equipment 1 70,888.47 (6,260.09) 64,628.38
Deferred tax assets 29A 5,968.00 (325.98) 5,642.02
Inventory 10 182,217.99 25.76 182,243.75
Trade Receivables 11 16,225.44 2,231.84 18,457.27
Other Current Financial Assets 15 134,671.18 (2,259.41) 132,411.77
Total Assets 409,971.08 (6,587.89) 403,383.19
Liabilities
Other Non Current Liabilities 22 327,670.33 (7,142.15) 320,528.18
Other Current Liabilities 27 121,781.55 297.27 122,078.82
Total Liabilities 449,451.88 (6,844.88) 442,607.00
Net assets (39,480.80) 256.99 (39,223.81)
Equity
Other Equity 18 302,564.66 256.99 302,821.65
Total Equity 302,564.66 256.99 302,821.65

March 31 2023
Statement of Profit and Loss (extract) Note Increase/ March 31 2023
without adoption
for the year ended 31 March 2023 No. (Decrease) as reported
of new policy
INCOME
Revenue from Operations 30 247,450.22 1,489.03 248,939.25
Expenses
Cost of materials consumed 32 120,083.63 949.83 121,033.46
Changes in inventories of finished goods and work-in-progress 33 (1,877.96) (25.76) (1,903.72)
Depreciation and amortisation expense 36 8,456.04 (730.25) 7,725.79
Total Expenses 126,661.71 193.82 126,855.53
Profit before tax 46,885.14 1,295.21 48,180.35
Deferred Tax 29C (138.48) 325.98 187.50
Profit/ (Loss) for the year 34,248.26 969.23 35,217.49
38(28) Previous year figures have been regrouped or rearranged wherever necessary. Negative figures are indicated in parenthesis.
Significant Accounting Policies and accompanying Notes form an integral part of the Financial Statements
As per our report of even date,

For G Natesan & Co., For and on behalf of the Board

Chartered Accountants
Firm’s Registration No. 002424S

CA K Murali N SRINIVASULU P Radhakrishna

Partner Director (Finance) Chairman and Managing Director
([Link]. 024842) DIN: 08744682 (Additional Charge)
UDIN: 23024842BGXAJK8165 DIN: 08437975

N NAGARAJA
Place: Hyderabad Place: Hyderabad Company Secretary
Date: 25 May 2023 Date: 25 May 2023 ([Link].A19015)

194 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
 CORPORATE OVERVIEW Boards’ Report FINANCIAL STATEMENTS

Notes

Annual Report 2022-23

BHARAT
DYNAMICS LIMITED 195
Notes

196 BHARAT
DYNAMICS LIMITED
Annual Report 2022-23
Kanchanbagh Unit Bhanur Unit Visakhapatnam Unit

(A Govt. of India Enterprise, Ministry of Defence)

CIN No.: L24292TG1970GOI001353
Corporate Office: Plot No. 38-39, TSFC Building,
Near ICICI Towers, Financial District, Gachibowli, Hyderabad - 500032. Telangana, India.
E-mail: investors@[Link] Website: [Link]