Bharat Electronics Ltd Auditor Reports

To the Members of Bharat Electronics Limited

Report on the Audit of the Standalone Financial

Statements

Opinion

We have audited the accompanying Standalone Financial Statements of BHARAT ELECTRONICS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2026, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Financial Statements, including a summary of material accounting policies and other explanatory information (hereinafter referred to as the "Standalone Financial Statements"). These Standalone Financial Statements include the financial information/statements of the Companys branches at Ghaziabad, Panchkula, Kotdwara, Pune, Navi Mumbai, and Machilipatnam, which have been audited by the respective branch auditors for the year ended March 31, 2026.

In our opinion and to the best of our information and according to the explanations given to us and based on the audit reports provided by the branch auditors, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2026, its profit and other comprehensive income, its changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

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

Key Audit Matters

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

Other Information

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

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

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors report, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. When we read

the Management Discussion and Analysis and Board of Directors Report along with its Annexures, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe actions applicable under the applicable laws and regulations.

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

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

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud

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

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

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

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to the Standalone Financial Statements in place and the operating effectiveness of such controls.

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in

our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

1. We did not audit the financial statements/financial information of six branches included in the Standalone Financial Statements of the Company whose financial statements/ financial information reflect total assets of 9,34,003 Lakhs as at 31 March 2026, revenue from operations of 9,56,207 Lakhs and total profit before tax of 2,99,972 Lakhs for the year ended on 31 March 2026. The financial statements/ financial information of these branches has been audited by the branch auditors appointed by the Comptroller & Auditor General of India, whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors.

2. As on 31 March 2026, the Companys Board of Directors comprises seven Whole-time Executive (Functional) Directors including the Chairman and Managing Director, two Part-time Government (Non-Executive) Directors and three Independent Directors. The composition of Board is not in terms of Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 and Section 149 of the Companies Act, 2013, due to non-appointment of requisite number of Independent Directors including one Independent Woman Director on the Board of the company by Ministry of Defence, Government of India.

There are six vacancies of Independent Directors, including one Independent Woman Director as on 31 March 2026. All the vacancies were notified in time to Government for filling up and the matter is under consideration of the Ministry of Defence, Government of India.

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

Report on Other Legal and Regulatory Requirements

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

2. As required by Section 143(3) of the Act, based on our

audit and on the consideration of reports of the branch

auditors on the financial statements/financial information

of the branches we report that:

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

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

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

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

e) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.

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

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

h) With respect to the adequacy of the internal financial controls with reference to the Standalone Financial

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

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

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

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

ii. The Company has made provision as required under the applicable law or accounting standards, for material foreseeable losses. The Company did not have any long-term derivative contracts. Refer Note 21 to the Standalone Financial Statements.

iii. There has been no delay in amount required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2026.

iv. (a) The Management has represented to us

that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons

or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Refer note 30 (20) (e) to the Standalone Financial Statements.

(b) The Management has represented to us, that, to the best of its knowledge and belief no funds have been received by the Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Refer note 30 (20) (f) to the Standalone Financial Statements.

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

v. As stated in Note 30(16) to the Standalone

Financial Statements

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

(b) The interim dividend declared and paid by the Company during the year and until

the date of this report is in compliance with Section 123 of the Act.

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

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

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

For RAO & EMMAR

Chartered Accountants Firm Registration Number: 003084S

Praveen B J

Partner

Membership Number: 215713 UDIN: 26215713HAPHVM7678

Dharamshala

19 May 2026

"Annexure A" to the Independent Auditors Report

Referred to in paragraph 1 under the heading, "Report on Other legal and Regulatory Requirements" of our report on even date:

To the best of our information and according to the explanations provided to us by the Company and the books of account and records examined by us in the normal course of audit, we state that:

i. a. A. The Company is maintaining proper records showing full particulars, including quantitative details and situation of property, plant and equipment and relevant details of right-of- use assets.

B. The Company is maintaining proper records showing full particulars of intangible assets.

b. The Company has a regular program of physical verification of its property, plant and equipment by which its property, plant and equipment are verified in a phased manner over a period of three

years and in some branches/locations annually. In our opinion, the periodicity of physical verification of property, plant and equipment is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this program, a portion of property, plant and equipment were verified during the year and according to the information and explanation provided to us by the Management, no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, title deeds of immovable properties as disclosed in the Standalone Financial Statements are held in the name of the Company except the following.

Description of the Property	Gross Carrying Value (In Lakhs)	Held in the name of	Whether Promoter, Director, their relative or employee	Period held	Reason for not being held in the name of the Company
Defense system Integration complex (DSIC) Land at Palasamudram	7,309.91	Government of Andhra Pradesh	No	10 years	As per agreement to sale, Sale deed will be executed after commencement of production by utilising at least 50% of land allotted by Government.
Freehold land admeasuring 96.27 acres at Ibrahimpatnam	1,210.85	Andhra Pradesh Industrial Infrastructure Corporation*	No	12 years 8 Months	Sale deed is pending to be executed.
Freehold land admeasuring 26.55 acres at Ibrahimpatnam	522.31	Telangana State Industrial Infrastructure Corporation Limited	No	9 years 10 Months	Sale deed is pending to be executed.
2.5 MW Windmill - at Davangere		Government of Karnataka	No	20 Years	Lease Deed is pending with Forest Department of government of Karnataka. Currently Matter is in dispute in the High Court of Karnataka.
Freehold Land at Sohna, Haryana	0.42 (Value of land for 36.72 acres)	No Title Deeds	No	51 years 10 Months	The total freehold land of 36.72 acres at Sohna (Haryana) is not registered in the Companys name. Registration is not required, as the property was awarded to the Company by operation of law under the Land Acquisition Act, 1894. The award was published in the official Gazette of the State Government of Haryana and ownership rests with the Company. However, for the purpose of recording rights in the land revenue records, the mutation process is underway. As of March 31,2026, mutation proceedings for land measuring 36.05 acres have been completed. For the remaining 0.67 acres, mutation is pending with the concerned Tehsildar.

* Now known as Telangana State Industrial Infrastructure Corporation Limited

Pending Litigation cases related to Land and leases:

• In respect of the leasehold lands, the Land for 2.5 MW Windmill plant at Davangere is owned by Forest Department - Government of Karnataka for which the Unit is yet to execute the lease deed. The Unit took possession of land from 30 September 2006, and Lease Deed is pending with Forest Department of Government of Karnataka. Currently the matter is in dispute in the High Court of Karnataka.

• Title in respect of Freehold land measuring 0.979 (0.566) acres out of total freehold land measuring 86.91 acres is under Litigation.

• Out of Freehold land at Sohna of 36.72 acres valuing 0.42 lakhs, mutation of land measuring 0.67 acres is pending with concerned Tehsildar

d. The Company has chosen cost model for its property, plant and equipment (including Right to Use Assets) and intangible assets. Consequently, the question of our commenting on whether the revaluation is based on the valuation by a Registered Valuer, or specifying the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each class of property, plant and equipment (including Right to Use Assets) or intangible assets does not arise.

e. According to the information and explanations provided to us, there are no proceedings that have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) and rules made thereunder.

ii. a. The inventory, except goods in transit and inventory lying with sub-contractors, has been physically verified by the Management during the year. In our opinion, the frequency, coverage and procedure

of such verification is reasonable and appropriate. In respect of good-in-transit, subsequent goods delivery documents have been verified by the Management. Inventory lying with sub-contractors having substantial values have been confirmed by the Management from such sub-contractors. The discrepancies noticed on verification between the physical stocks and the book records were not 10% or more in the aggregate for each class of inventory and have been properly dealt with in the books of account.

b. According to the information and explanations provided to us, the Company has been sanctioned working capital limits in excess of five Crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets.

The Management of the Company has provided us with the quarterly returns or statements (except for quarter ended 31 March 2026, which is yet to be submitted), which they have represented to us have been filed by the Company with their banks or financial institutions based on the sanction terms. Based on our procedures and in our opinion the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company.

iii. a. According to the information and explanations provided to us, during the year the company has not made any investments, security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties except for a guarantee provided to its associate company "BEL IAI Aerosystems Private Limited" for 5,500 Lakhs and loans to its employees as per the standard Company policy refer Note 8 of Standalone financial statements.

Particulars		Loan	Advance	Guarantee	Security
A)	The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances to subsidiaries, joint ventures and associates;	Nil	Nil	Nil	Nil
B)	The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans or advances and guarantees or security to parties other than subsidiaries, joint ventures and associates;
	• The aggregate amount of loans or advance to employees during the year	257	379	Nil	Nil
	• The aggregate amount of loans or advance to employees as on year end*	1,002	187	Nil	Nil

b. According to the information and explanations provided to us and based on our review of the terms of policy, conditions and circumstances, the investments made and the terms and conditions of the grant of loans/advances in the nature of loans are not prejudicial to the Companys interest.

c. According to the information and explanations provided to us, in respect of loans, the schedule of repayment of principal and payment of interest have been stipulated. The repayments or receipts are as per the schedule stipulated.

d. According to the information and explanations provided to us and based on the terms and conditions of the loans, no amount is overdue for more than 90 days.

e. According to the information and explanations provided to us, no loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the over dues of existing loans given to the same parties.

f. According to the information and explanations provided to us, the Company has not granted loans repayable on demand in current year or without specifying any terms or period of repayment. Hence, reporting under clause 3(iii)(f) is not applicable.

iv. According to the information and explanation provided to us and as per notification no. GSR 463(E) dated 5 June 2015, sections 185 and 186 of the Act with respect to granting of loans, investments, guarantees and security, is not applicable to a Government Company engaged in defence sector/production.

v. According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year within the meaning of Sections 73 to 76 of the Act and the Rules made thereunder or amounts which are deemed to be deposits. We were informed that no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

All earlier year deposits (collected prior to February 2006) have matured and settled except for 36.95 Lakhs, out of which 36.50 Lakhs is retained as per Garnishee Order of Lokayukta, Bengaluru and balance of 0.45 Lakhs though matured is unpaid due to legal issues.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1) of the Act, and are of the opinion that, prima facie, the prescribed records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. a. According to the information and explanations

given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Goods and Services Tax, Provident Fund, Employees State Insurance, Income-Tax, Sales-Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of statutory dues referred in sub clause (a) above were in arrears as at 31 March 2026, for a period of more than six months from the date they became payable except for the following

• As at 31^st March 2026, Kotdwara Unit of the Company has not deposited Property tax demand of 1116.30 Lakhs received from Kotdwara Municipal Corporation and the matter is under discussion with authorities.

b. According to the information and explanations given to us, there are no statutory dues referred in sub clause (a) above as at 31 March 2026, which have not been deposited by the Company on account of disputes, except for the following:

					(Amounts in Lakhs)
Name of the Statute	Nature of dues	Amount in Lakhs	Amount paid under Protest in Lakhs	Period to which the amount pertains	Forum where the dispute is pending
Income Tax Act, 1961	Disallowance as per assessment orders	18,977.63		2009- 10 2010- 11 2013- 14 2017- 18 2018- 19 2020- 21 2021-22 2024-25	Commissioner of Income Tax
Income Tax Act, 1961	Tax Deducted at Source	41.39		2007- 08 2008- 09 2009- 10 2010- 11 2011-12 2012- 13 2013- 14 2014- 15 2015- 16 2017-18 2023-24	TDS Circle
Income Tax Act, 1961	Interest under section 244A	581.26	-	2023-24	Commissioner of Income Tax
Goods & Service Tax	Central Goods & Service Tax	65.77	10.46	2017- 18	High Court
Goods and Service Tax Act, 2017	Tax, Interest and Penalty	23.48	1.02	2018- 19	Goods and Service Tax Department, Navi Mumbai
Goods and Service Tax Act, 2017	CENVAT Credit and ITC	8.05	-	2017- 18	First Appellate Authority
Goods and Service Tax Act, 2017	Input Tax Credit	31.76	-	2018- 19	Punjab & Haryana High Court,Chandigarh
Goods and Service Tax Act, 2017	Input Tax Credit	121.81	-	2019- 20	Punjab & Haryana High Court, Chandigarh
Goods and services Act, 2017	Goods and Service Tax including penalty	0.33	-	2018-19	The Assistant Commissioner of Central Tax
Goods and services Act, 2017	Goods and Service Tax including penalty	18.17	-	2017-18	The Superintendent of Central Taxes, NWD-III Division
Goods and services Act, 2017	Goods and Service Tax including interest and penalty	6.56		2018-19	Assistant commissioner of State Taxes
Goods and services Act, 2017	Goods and Service Tax including penalty	0.12	-	2018-19	Deputy commissioner of state taxes, Udaipur, Rajasthan.
Goods and services Act, 2017	Goods and Service Tax including interest and penalty	2769.62		2020-21	CTO, Excise & Taxation Dept, Chandigarh.
Goods and services Act, 2017	Goods and Service Tax including penalty	1017.3	-	2019-23	Assistant Commissioner of Central Taxes, Nagaland.
Goods and services Act, 2017	Goods and Service Tax including interest and penalty	23.77		2020-21	Assistant Commissioner of State Taxes, Bihar
Goods and Service Tax Penalty under Goods Act, 2017 and Service tax		3.74	-	Prior to 2017	Joint Commissioner (Appeals) Goods and Service Tax, Chennai
Goods and Service Tax Act, 2017	Goods and Service Tax including interest and penalty	25.9	2.74	2020-21	Goods and Service Tax Department Navi Mumbai
Goods and Service Tax Act, 2017	Goods & Service Tax (Customs)	1056.14	26.23	2020-24	CESTAT

 

Name of the Statute	Nature of dues	Amount in Lakhs	Amount paid under Protest in Lakhs	Period to which the amount pertains	Forum where the dispute is pending
Goods and Service Tax Act, 2017	Central Goods & Service Tax	580.57		2018- 19 2019- 20 2020- 21 2021-22 2022-23	Assistant Commissioner of Goods and Service Tax
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	18.23	-	2021-22	Superintendent of CGST & Central Excise, Andaman & Nicobar
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	22.43		2021-22	Assistant commissioner CGST & Central Excise, Andaman & Nicobar
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	29.21	-	2018-23	Superintendent of CGST & Central Excise, Pakur, Jharkhand
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	5.63	-	2021-22	Superintendent of CGST & Central Excise, Pakur, Jharkhand
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	2747.25		2018-19	Additional Commissioner of Central Tax, Central Excise and Service Tax, North West, Bengaluru
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	47.27		2019-20	Assistant Commissioner of Central Tax, Central Excise and Service Tax, North West, Bengaluru
Goods and Service Tax Act, 2017	Goods and Service Tax including penalty	2005.93	-	2018-22	Additional Commissioner of CGST & Central Excise, Siliguri
ESI Act, 1948	ESI Contribution	55.78	-	2020- 21	Employee State Insurance
ESI Act, 1948	Interest & Cost of recovery	20.26	8	1998- 01	A.P High Court
Central Excise Act	Central Excise Duty	23.65	10.00	1990- 91	Commissioner Appeals
Excise & Taxation	Entry Tax	11.68		2015- 16 2016- 17 2017- 18	Excise & Taxation Department
Customs Act, 1962	Customs duty including interest and penalty	607.72	500.77	2015-16	Customs Excise and Service Tax Appellate Tribunal (CESTAT)
Customs Act, 1962	Customs duty	0.2	0.2	2017-18	Assistant Commissioner of Customs
Customs Act, 1962	Customs duty including penalty	6171.53	-	2024-25	Principal commissioner of Customs
Customs Act, 1962	Customs duty including penalty	2571.84	-	2024-25	Commissioner of Customs
Customs Act, 1962	Customs duty including penalty	1010.59	-	2024-25	Commissioner of Customs
Customs Act, 1962	Customs duty including penalty	547.4	-	2024-25	Commissioner of Customs
Customs Act, 1962	Customs duty including penalty	470.37	-	2024-25	Commissioner of Customs
Customs Act, 1962	Customs Duty	25.45	-	2002- 03	Commissioner (Appeals) of Customs
Custom Act, 1962	Custom Duty	588.6	42.27	2021- 22	Customs, Excise and service Tax Appellate Tribunal (CESTAT)
Service Tax Act, 1994	Service Tax including penalty	1426.62	53.5	2014- 15 2015- 16	Customs Excise and Service Tax Appellate Tribunal (CESTAT)
Madhya Pradesh VAT Act, 2002	Value added tax including penalty	72.62	26.87	2011-12	MP commercial Tax appellate board
Haryana VAT Act, 2002	Value added tax	20.9	-	2012-13	Assistant Commissioner, Value Added tax, Gurugram
Bihar sales Tax act, 1947	Bihar sales tax	66.44	-	1995-98	Joint commissioner of commercial taxes
(Amounts in Lakhs)
Name of the Statute	Nature of dues	Amount in Lakhs	Amount paid under Protest in Lakhs	Period to which the amount pertains	Forum where the dispute is pending
Rajasthan Sales Tax Act,1994	Sales Tax	58.85	3.4	2008- 09	Rajasthan Tax Board
Chapter V of the Finance Act 1994	Service Tax	30.93	3.09	2016- 17 2017- 18	Customs Excise and Service Tax Appellate Tribunal (CESTAT Chennai)
Tamil Nadu Value Added Tax,2006	Sales Tax	106.64	-	2015-16	Sales tax Tribunal Chennai
Tamil Nadu Value Added Tax,2006	Sales Tax	30.97	-	2016-17	Sales tax Tribunal Chennai
West Bengal Taxation Tribunal	Sales Tax	0.71		2016-17	Sr. Joint Commissioner, Commercial Tax, Kolkata South Circle, WB

viii. According to the information and explanations given to us and records examined by us, there are no transactions which were not recorded in the books of account and have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).

ix. a. Based on our audit procedures; in our opinion and

according to the information and explanations given to us, the Company does not have any loans or borrowings from any lender. Accordingly, reporting on clause 3 (ix) (a) is not applicable. However, refer to clause 3(ii)(b) above.

b. According to the information and explanations given to us, our audit procedures and as represented to us by the Management, we report that the Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

c. According to the information and explanations given to us and in our opinion, no term loans are availed by the Company in the current year. Accordingly reporting on clause 3 (ix) (c) is not applicable.

d. According to the information and explanations given to us, the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that no funds raised on short- term basis have been used for long-term purposes by the Company.

e. According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not taken any funds (borrowings) from any entity or person on account of or to meet the obligations of its subsidiaries or associate.

f. According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries or associate company.

:. a. The Company has not raised moneys by way of

initial public offer or further public offer (including debt instruments) during the year.

b. According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially or optionally convertible) during the year. Accordingly, reporting on clause x(b) is not applicable.

:i. a. Based upon the audit procedures performed by us

and according to the information and explanation provided to us by the Management, no fraud by the Company or no fraud on the Company has been noticed or reported to us during the year.

b. According to information and explanation provided to us and based on our examination of records, no report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government during the year and up to the date of this report.

c. According to information and explanation provided to us and based on our audit procedures and enquiry with the vigil mechanism committee, there were complaints received during the year which we have taken into consideration while determining the nature, timing and extent of audit procedures.

xii. I n our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, reporting on clause 3 (xii) (a), (b) & (c) of the Order is not applicable.

xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and the details of transactions have been disclosed in the Standalone Financial Statements as required by Ind AS 24 Related Party Disclosures to the extent applicable to Government companies. Refer Note 31 to the Standalone Financial Statements.

xiv. a. According to the information and explanations

given to us and in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

b. We have considered, the Internal Audit reports, issued to the Company during the year and till date, in determining the nature, timing and extent of our audit procedures.

xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into any noncash transactions with the directors or persons connected with them during the year. Accordingly, reporting on clause 3(xv) of the Order is not applicable.

xvi. a. I n our opinion and according to the information

and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India, 1934. Accordingly, Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

b. In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. The Company has not incurred cash losses in the current financial year and in the immediately preceding financial year.

xviii. There has been no resignation of the statutory auditors during the year. Accordingly, reporting on clause 3 (xviii) of the Order is not applicable.

xix. According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.

xx. a. There are no unspent amounts towards Corporate

Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the year.

b. According to the information and explanations provided to us, an amount of 7,536 Lakhs remaining unspent under sub-section (5) of section 135 of the Companies Act, pursuant to an ongoing project, has been transferred to special account in compliance with the provision of sub-section (6) of section 135 of the said Act. Refer Note 30 (14) to the Standalone Financial Statements.

For RAO & EMMAR

Chartered Accountants Firm Registration Number:003084S

Praveen B J

Partner

Membership Number: 215713 UDIN: 26215713HAPHVM7678

Dharamshala

19 May 2026

"Annexure B" to the Independent Auditors Report

Referred to in paragraph 2 (h) under the heading, "Report on Other legal and Regulatory Requirements" of our report on even date:

Report on the Internal Financial Controls with reference to Standalone Financial Statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act").

We have audited the internal financial controls with reference to the Standalone Financial Statements of BHARAT ELECTRONICS LIMITED ("the Company") as of 31 March 2026 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management is responsible for establishing and maintaining internal financial controls based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to the Standalone Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to the Standalone Financial Statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to the Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to the Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to the Standalone Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controls based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and by the branch auditors, in terms of their reports, is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls with reference to the Standalone Financial Statements.

Meaning of Internal Financial controls with reference to the Standalone Financial Statements

A Companys internal financial controls with reference to the Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A Companys internal financial controls with reference to the Standalone Financial Statements includes those policies and procedures that (1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of Standalone Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorisations of Management and directors of the Company; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companys assets that could have a material effect on the Standalone Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to the Standalone Financial Statements

Because of the inherent limitations of internal financial controls with reference to the Standalone Financial Statements, including the possibility of collusion or improper Management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to the Standalone Financial Statements to future periods are subject to the risk that the internal financial controls with reference to the Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion and based on audit reports of branch auditors, the Company has, in all material respects, adequate internal financial controls with reference to the Standalone Financial Statements and such internal financial controls with reference to the Standalone Financial Statements were operating effectively as at 31 March 2026, based on the internal controls over financial reporting criteria established by the Company considering the essential components of internal controls

stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to Standalone Financial Statements in so far as it relates to six branches, is based on the corresponding reports of the auditors of such branches.

Our opinion is not modified in respect of the above matter.

For RAO & EMMAR

Chartered Accountants Firm Registration Number:003084S

Praveen B J

Partner

Membership Number: 215713 UDIN: 26215713HAPHVM7678

Dharamshala 19 May 2026

"Annexure C" to the Independent Auditors Report

Referred to in paragraph 3 under the heading, "Report on Other legal and Regulatory Requirements" of our report on even date:

Report on the areas to be examined by the Statutory Auditors as per directions of the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013 for the year ended 31^st March 2026.

In our opinion and to the best of our information and according to the explanations given to us and based on the audit reports provided by the branch auditors, we report the following:

Sl. No.	Directions/sub directions	Action taken	Impact on financial Statements
1	Assess the fair valuation of all the investments, both quoted and unquoted, made directly by the Company or through Trusts, for Post-retirement benefits of the employees. This includes verifying valuation methodologies, ensuring consistency with Ind AS and reviewing supporting documentation. The auditor shall provide a brief note on the valuation approach, its reasonability, and compliance with applicable regulations, reporting any material deviations or misstatements.	According to the information and explanations given to us The Company has contributed towards post-retirement employee benefit obligations such as gratuity, Provident Fund, leave encashment and Superannuation scheme to either trusts or directly by company in case of leave encashment. Which are managed by Trusts/external fund managers/insurers. Valuation Approach: In respect of quoted investments, fair valuation is determined based on observable market prices at the reporting date, in line with Ind AS 113. For unquoted investments and pooled funds, valuation is based on Net Asset Value (NAV) statements and valuation reports provided by the respective fund managers/ trustees. The Company has followed a consistent valuation methodology in line with prior periods, and such approach is in conformity with the requirements of Ind AS 19 read with applicable fair valuation principles. Based on the procedures performed and records examined, the valuation approach adopted by the Company is considered reasonable and compliant with applicable accounting standards, and no material deviations or misstatements were observed in the reporting of such investments.	Nil
2	Whether the Company has a system in place to process all the accounting transactions through IT system? If yes, whether review of this system and controls that are significant to the Companies financial reporting process as well as cyber security has been done by Information Security Auditing Organisations empanelled by Cert-In at a minimum frequency of once in a year and material discrepancies found, if any, have been suitably reported? The implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications may also be reported.	According to the information and explanation given to us and based on the records of the Company examined by us, the Unit has ERP system in place that enables to process all the accounting transactions through IT system. Review of this system & Control done by information security auditing organisation empanelled by cert - In once in a year and no material discrepancies are identified.	Nil
3	Whether funds (grants / subsidy etc.) received / receivable for specific schemes from Central / State Government or its agencies were properly accounted for as per the applicable accounting standards or norms and whether the received funds were utilised as per its terms and conditions? Whether accounting of interest earned on grants received has been done as per terms and conditions of the Grant. List the cases of deviation.	According to the information and explanation given to us and based on the records during the year no funds have been received towards specific schemes from Central/ State Government or its agencies except for a subsidy receipt under M-SIPS (Modified - Special Incentive Package Scheme) - for the investment made by MR SBU - BG Complex for Electronics System Design and Manufacturing during the previous years and is appropriately accounted.

"Annexure C" to the Independent Auditors Report

Referred to in paragraph 3 under the heading, "Report on Other legal and Regulatory Requirements" of our report on even date:

Sl. No.	Directions/sub directions	Action taken	Impact on financial Statements
		Further funds received in earlier years have been appropriately accounted and utilised for the purpose for which it is received. Export incentives availed by the unit in the form of Duty Drawback etc. are not considered as grant for the reporting under this clause. Hence this clause is not applicable.
4	Whether the Company has identified the key Risk areas? If yes, whether the Company has formulated any Risk Management Policy to mitigate these risks? If yes, (a) whether the Risk Management Policy has been formulated considering global best practices? (b) Whether the Company has identified its data assets and whether it has been valued appropriately?	According to the information and explanation given to us the Company has risk management committee which conducts its meetings at regular intervals and identifies key risk areas across operations, finance, compliance, and strategic functions, and has established a formal Risk Management Policy to mitigate such risks. The policy framework is broadly aligned with recognized global practices, including structured risk identification, assessment, monitoring, and mitigation mechanisms. The Company has also taken steps to identify its critical data assets and implement controls for their protection and management. However, valuation of data assets is not carried out separately in the financial statements, as such assets are not recognized unless meeting the criteria prescribed under applicable accounting standards, and no material financial impact arises on this account.
5	Whether the Company is complying with the Securities and Exchange Board of India (SEBI) (Listing Obligation and Disclosure Requirements) Regulations, 2015, and other applicable rules and regulations of SEBI, Department of Investment and Public Asset Management, Ministry of Corporate Affairs, Department of Public Enterprises, Reserve Bank of India, Telecom Regulatory Authority of India, CERT-IN, Ministry of Electronics and Information Technology and National Payments Corporation of India wherever applicable? If not, the cases of deviation may be highlighted.	According to the information and explanation given to us the Company is generally compliant with the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable regulatory requirements issued by Ministry of Corporate Affairs, Department of Investment and Public Asset Management, Department of Public Enterprises, Reserve Bank of India, CERT-In, Ministry of Electronics and Information Technology, and National Payments Corporation of India, wherever applicable. Based on the audit procedures performed, including review of statutory filings, disclosures, and compliance reports, no material instances of non-compliance were observed except for the matters mentioned point 2 of other matters paragraph. The Company has established systems and processes to ensure adherence to applicable laws and regulations. Accordingly, no cases of deviation requiring reporting were noticed during the audit.

For RAO & EMMAR

Chartered Accountants Firm Registration Number: 003084S

Praveen B J

Partner

Membership Number: 215713 UDIN: 26215713HAPHVM7678

Dharamshala 19 May 2026