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Bharat Heavy Electricals Ltd
Industry :  Electric Equipment
BSE Code
ISIN Demat
Book Value()
NSE Symbol
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As on: Dec 09, 2023 01:06 PM

Dear Members,

The Board of Directors takes pleasure in presenting the 59th Annual Report on the business and operations of your Company and the Audited Financial Statements for the year ended March 31, 2023.

Financial Results

For the year ended
March 31, 2023 March 31, 2022
Revenue 22136 20153
Revenue from operations 23365 21211
Profit/(loss) after tax 448 410
Total comprehensive income /(loss) 430 487
EPS (in ) 1.29 1.18

State of Company Affairs

The company posted a growth of 10% in Revenue from Operations, achieving 23,365 Crore during FY 2022-23 as against 21,211 Crore in last financial year and a growth of 9.3% in Profit After Tax achieving 448 Crore as against 410 Crore in the previous year.

The results of continued focus in recent years on project execution, closures and physical performance have become clearly visible with erection tonnage at project sites at a record 5.41 lakh MT (doubled over a period of previous 3 years) despite decline in order book on the back of ‘nil' ordering in thermal sector for over three years as well as increase in liquidation of Current Year billing to 86% in FY 2022-23 from 59% over the past four years. This is a clear indication of success of the major initiatives including implementation of Integrated Project Management System (IPMS) for real time project monitoring, Site Data Digitization for ensuring single source of data, focus on sequential supplies and technical & financial closure of completed projects. Focused project management efforts saw excellent results with commissioning of North Karanpura Unit 1, Nation's first utility scale thermal power plant fitted with Air Cooled Condenser (ACC), as well as commissioning of Unit 1 of the prestigious 2x660 MW Maitree Super Thermal Power Project, Bangladesh. Further, Unit 2 of the Maitree Project has been synchronized on 28 June 2023 ahead of a very tough time target given by Government of Bangladesh, for the same.

Diversification efforts in recent years saw fruits in the form of signing of MoU with Coal India Ltd for setting-up of 2,000 TPD Coal to Ammonium Nitrate plant based on BHEL's indigenous technology for gasification of high ash Indian coal (first proven technology for the same), which has been followed with completion of engineering, optimization & validation by international experts and formation of the Joint Venture is progressing well. Further efforts for increasing our rail transportation business led to award of prestigious order for manufacturing and maintenance of 80 sets of "Vande Bharat" trainsets. This project is being taken-up by BHEL as lead partner in consortium with Titagarh Rail Systems Ltd. and is valued at over 23,000 Crore excluding taxes (BHEL share at about 13,500 Crore).

With regard to future growth perspective, the order booking for the company in FY 2022-23 touched 23,548 Crore (net of taxes), which is highest in the last 5 years. It is also pertinent to note that the company's efforts in the Industry Sector have borne fruits and the order booking at 9,537 Crore (net of taxes) is highest in the last 13 years, with its share at 40% of the yearly order book. The reporting of order book is done excluding applicable taxes for better understanding of all stakeholders, and is in line with the reporting of revenue numbers. The total outstanding order book as on 31st March 2023 stands at 91,336 Crore, net of taxes (PY 90,084 Crore). With the receipt of the prestigious "Vande Bharat" trainset order in April 2023, the total outstanding order book has crossed 1 Lakh crore (excluding taxes), which is the highest in last 4 years.

The increase in revenue in FY 2022-23 has been achieved despite challenges persisting for material availability on account of geopolitical issues and scarcity of key inputs such as semiconductors. The spares & services business, which has been a focus area for your company, recorded a growth of about 25%.

Material cost in the recent past has been a challenge, not only for BHEL but also across the industry spectrum, domestic as well as global. Though metal prices have seen some corrections, they are still at substantially elevated levels. Despite these constraints, your company was able to maintain the material cost during FY 2022-23, at levels similar to previous year. In the coming year, rising raw material prices as well as execution of old projects, won through highly competitive bidding, are expected to continue to affect the financial position & liquidity of the company.

Higher fuel prices have adversely impacted the bottom-line. Furthermore, inflation in general is also putting persistent pressures on operational budgets which are being dealt through stringent budgetary controls measures. The company is focusing on project completion despite poor margins in civil revenues, which would continue to challenge the bottom-line.

Your company optimized the inventory levels by unlocking the blocked inventories, and during the year 2022-23, 230 Crore worth of non-moving inventory was liquidated. The efforts in sale of scrap, disposal of non-moving inventory, etc., in the company have helped increase other operational income and has assisted in improving EBITDA levels to 1,231 Crore, up by about 11% from EBITDA of 1,106 Crore for FY 2021-22. Profit After Tax for FY 2022-23 was further aided by the gains made in the taxation area. During the year, the company received Income Tax refunds (including interest) totalling 266 Crore, which have helped in the net cash generation as well as the bottom line.

Other operational income, directly contributing to bottom line, reached its highest levels at 1,229 Crore during FY 2022-23, which is up by 16% over FY 2021-22. The increase in Profit After Tax was also aided by continued stringent budgetary control on Manufacturing, Administrative and S&D expenses, which have been at their lowest level at 6.6% of Revenues, reflecting strong budgetary controls in the company. Concerted efforts & thrust on ‘Project Centric' operations resulted in liquidation of current year billing at 86% in FY 2022-23, which is similar to last year. The trade receivables in terms of no. of days of Revenue from Operations, have reduced to 102 days during FY 2022-23, as against 107 days during FY 2021-22. The Trade Receivables were at 6,544 Crore as on 31st March 2023 ( 6,229 Crore as on 31st March 2022) and Contract Assets stand at 29,740 Crore as on 31st March 2023 ( 26,940 Crore as on 31st March 2022). Though overall receivables have increased during FY 2022-23, there is a reduction in terms of no. of days of Revenue from Operations from 571 days last year to 567 days current year. The increase in receivables is mainly on account of skewed payment terms in contracts under execution that resulted in higher accumulation of deferred debts that are payable on completion of intermediate and final milestones.

Due to high investment in contract assets, the company had some pressures on cash position. However, the company retained its debt free status with closing positive cash & bank balance (net of short-term borrowings) of 1,258 Crore, and has enough leverage to invest in capex and diversification initiatives.

Transfer to Reserve

The company has not transferred any amount to the Reserves during FY 2022-23.


The Board of Directors, in its meeting held on May 26, 2023 has recommended a final dividend @20 % ( 0.40 per share of 2 each), amounting to 139.28 Crore, out of profit for FY 2022-23, subject to your approval. The Company has a dividend distribution policy in place in pursuance of the requirements of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR"). Dividend distribution policy is available on the Company's website at https://www.bhel.com/dividend-distribution-policy-bhel-0.


The Company has not accepted deposits from the public falling within the ambit of Section 73 of the Companies Act, 2013 during FY 2022-23.

Capital & Finance

During FY 2022-23, the company has met its CAPEX and operating fund requirements through internal accruals. The company invests any available surplus funds to maximize the interest income to the company. To meet any intermittent operational fund requirement, short term borrowing options used by the company including WCDL, Commercial Papers (listed on NSE and BSE), PCFC, etc. PCFC borrowings provide a natural forex hedge to the company. The company continues to retain its status as Zero Debt Company.

Loans and Investments

There are no instances of investments by the loanee in the company or its subsidiary.

Credit Rating

The credit ratings of your Company are as follows:

Rating Agency Date of Rating Long Term Rating Outlook Short Term Rating
CRISIL 18-06-2021 CRISIL AA- Negative CRISIL A1+
25-07-2022 CRISIL AA- Negative CRISIL A1+
INDIA 01-07-2021 Ind AA- Negative Ind A1+
RATINGS & RESEARCH 30-06-2022 Ind AA- Negative Ind A1+
24-06-2021 CARE AA- Stable CARE A1+
CARE 17-06-2022 CARE AA- Stable CARE A1+
19-06-2023 CARE AA- Stable CARE A1+

Persistent efforts by the company during the financial year for cutting down miscellaneous expenses and liquidation of old outstanding resulted in positive cash flows from operations and helped maintain the credit rating of the organization.

Material Changes and Commitments affecting the Financial Position

There are no material changes and commitments affecting the financial position of the Company between the end of FY 2022-23 and the date of this report. 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.

Suspension of Trading

The Equity Shares of the company are listed on NSE & BSE. The shares of the company were not suspended from trading during FY 2022-23.

Directors' Responsibility Statement

Pursuant to section 134(5) of the Companies Act, 2013, the Board of Directors confirm that: a) In the preparation of the Annual Accounts, the applicable Accounting Standards (Ind AS) have been followed along with proper explanations relating to material departures;

b) The Directors have selected such accounting policies & applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of financial year and of the profit of the Company for that period;

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

d) The Directors have prepared the Annual Accounts on a going concern basis;

e) The Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and operating effectively;

f) 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.

Management Discussion & Analysis

This report conveys the Management's perspective on the external environment, company's strategy for the future, operating and financial performance, risks and concerns, and initiatives taken in various areas during the year; such as diversification of business areas, revamping project execution, cost optimization, technology development, digitalization, quality, etc.

In the midst of a continuously challenging business and economic environment, your company has continued to focus on regaining growth. Strengthening the core business, focus on execution, and determined efforts towards diversification including increased business in non-coal areas are critical enablers for long term sustainable growth. For further details, please refer Annexure-I to the Board's report.

Corporate Governance

Pursuant to Regulation 34 of the SEBI (Listing Obligations

& Disclosure Requirements) Regulations, 2015, a report on Corporate Governance (including Board & Committee Meetings details) is given at Annexure-II to the Board Report together with the following, i. Certificate of Non-Disqualification of Directors under Schedule V of the SEBI Listing Regulations. ii. Auditors certificate on Corporate Governance under SEBI Listing Regulations & Department of Public Enterprises (DPE) guidelines on Corporate Governance. iii. Secretarial Audit Report under Section 204 (1) of the Companies Act, 2013.

Declaration of Independence

Declaration under Section 149(6) of the Companies Act, 2013 pertaining to criteria of independence has been given by the Independent Directors to the Board of Directors. All the Independent Directors have registered themselves on the online database of the Indian Institute of Corporate Affairs (IICA), notified under Section 150 of the Companies Act, 2013. In the opinion of the Board, the Independent Directors possess integrity and necessary expertise & experience.


In addition to focus on many other areas, the company continuously reviews and strengthens its compliance of systems and processes.

• The Company considers sound_Corporate Governance as one of its core values committing itself to maintaining_high degree of transparency in disclosures.

• To strengthen compliance mechanism across various laws, a quarterly legal compliance report on the Applicable laws/ Acts is reviewed by the Board of Directors.

• Being a listed company, compliance with the SEBI_ – (Listing Obligations and Disclosure_ Requirement) Regulations, 2015 is ensured._ There is no adverse comment from SEBI for the FY 2022-23 on any financial matter.

• The Company has complied with the applicable secretarial standards.

• For preparation of financial statements, the company ensures compliance to the_Indian Accounting Standards (Ind AS), Guidance Notes and other authoritative literature issued by the ICAI, Companies Act 2013 and other applicable statutes. The company endeavours to constantly improve its disclosures and transparency standards in the Financial Statements.

Contribution to the Exchequer

The Company, over the years, has been consistently making significant contribution to the Exchequer, and maintaining high standards of integrity with respect to tax compliances. During the current year, the company's contribution to exchequer stood at over 3,831 Crore.

Audit Committee

The Company has in place a Board Level Audit Committee in terms of the requirements of the Companies Act, 2013 read with rules made thereunder and Regulation 18 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, the details in respect of which are given in the Corporate Governance Report. All the issues are fairly and transparently deliberated in the meetings which are held at regular intervals. The views and suggestions of the Board Level Audit Committee members are taken into account and imbibed into the Company's processes. Further, there has been no instance where the Board of Directors have not accepted the recommendation of the Board Level Audit Committee.

Details of changes in Directors & Key Managerial Personnel Appointment

Ms. Arti Bhatnagar, Additional Secretary & Financial Advisor, Ministry of Commerce & Industry has been appointed as Part-time Offcial Director w.e.f. February 14, 2023.

Shri Ramesh Patlya Mawaskar has been appointed as Part-time Non-Offcial (Independent) Director w.e.f. June 8, 2023. Shri Jai Prakash Srivastava, Director (E, R&D) & Director (Finance) - additional charge has been designated as Chief Financial Officer (CFO) of the Company w.e.f. May 26, 2023. Shri Krishna Kumar Thakur has been appointed as Whole Time (Functional) Director w.e.f. July 4, 2023 and has taken charge as Director (Human Resources).

In accordance with applicable statutory provisions and Article 67(iv) of the Articles of Association of the Company, Ms. Arti Bhatnagar, Shri Ramesh Patlya Mawaskar and Shri Krishna Kumar Thakur having been appointed as additional directors, shall hold directorship upto the 59th Annual General Meeting of the Company and are eligible for appointment as Directors at the Meeting.

Further, pursuant to Section 152 of the Companies Act, 2013 and Article 67(i) of the Articles of Association of the Company, Shri Upinder Singh Matharu and Shri Jai Prakash Srivastava will retire by rotation at the Annual General Meeting and being eligible, offers themselves for re-appointment.


Dr. Raj K. Agarwal, who was appointed as Part-time Non-Offcial (Independent) Director on November 9, 2021, ceased to be a Director of the Company consequent to his resignation on September 12, 2022 from BHEL's Board of Directors. Dr. Raj K. Agarwal tendered his resignation citing his pre-occupation in personal affairs and inability to devote sufficient time towards discharge of his responsibilities as an Independent Director of the Company. Further, he also confirmed that there are no other reasons other than those provided by him for resignation.

Shri Raj Kamal Bindal and Shri Manish Kapoor, who were appointed as Part-time Non-o_cial (Independent) Directors on January 31, 2020, ceased to be Directors of the Company on completion of their tenure on January 27, 2023. Shri Shashank Priya, then Special Secretary & Financial Adviser, Ministry of Commerce & Industry who was appointed as Part-time Offcial Director on October 4, 2019, ceased to be Part-time Offcial Director on February 14, 2023. Shri Subodh Gupta who was appointed as Director (Finance) w.e.f. April 18, 2018 ceased to be Director (Finance) w.e.f. April 18, 2023 in terms of Ministry of Heavy Industries' communication dated May 17, 2023. Further, he also ceased to be CFO of BHEL w.e.f. April 18, 2023.

The Board of Directors place on record their deep appreciation for the valuable services rendered as well as advice and guidance provided by Dr. Raj K. Agarwal, Shri Raj

Kamal Bindal, Shri Manish Kapoor, Shri Shashank Priya and Shri Subodh Gupta during their respective tenure on the BHEL Board.

In compliance with Regulation 36(3) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, brief resume of the Directors proposed for appointment and re-appointment along with the nature of their expertise in specific functional areas and names of companies in which the person holds directorship along with the membership of the Committees of the Board are given in the explanatory statement/ annexure to the Notice.

CEO/ CFO Certificate

CEO/CFO certificate as per Regulation 17(8) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 is placed at Annexure- III to the Board's Report.

Consolidated Financial Statements

The brief on consolidated financial statements prepared pursuant to section 129 (3) of the Companies Act, 2013 and Regulation 34 of the SEBI (Listing Obligations & Disclosure Requirement) Regulations 2015, is given in section 1.8.3 under Management Discussion & Analysis.

Sustainable Development

We, at BHEL, tirelessly endeavour for sustainable operations in our various business processes & activities. Our mission statement – ‘Providing sustainable business solutions in the fields of Energy, Industry & Infrastructure' bears testimony to our commitment for contributing towards Sustainable Development and aspires to augment the industrial effort in this direction. Sustainable development at BHEL addresses all three pillars of sustainability; namely- Environmental, Economic and Social. Being a responsible and sustainable organisation, BHEL strives towards integration of environmental, health, social equity and economic vitality within the organisation and beyond. Manifestation of this vision is evident in our actions apropos greener product development, increased renewable energy generation and usage, efficient water management, enhanced green cover, emission reduction, optimization of natural resources usage and improved energy efficiency and conservation. The brief of some of these activities that help us move towards a sustainable future are given in Annexure-IV to the Board's Report.

Green Company

Climate change has today occupied the centre stage in policy making across the globe and is seriously impacting the way businesses work. At the national level, Govt. of India has adopted ‘Panchamrit' to deal with these challenges as well as committed to Net Zero target by 2070. As part of our ethos for sustainable development, the company has now undertaken a major initiative for "Making BHEL a Green

Company". This initiative will further strengthen BHEL's position as a responsible and sustainable organization. In addition to generating goodwill for the company, it is expected to reduce costs and improve availability of borrowings & insurance in the long run and will also help to create a culture of innovation within the company to design, engineer and manufacture environment friendly products.

Business Responsibility and Sustainability Report

In line with the requirement of the listing regulations, Business Responsibility and Sustainability Report providing disclosures in environmental, social and governance perspectives is enclosed at Annexure-V to the Board's Report.

Achievements of R&D and Technological Development

BHEL, in line with country's vision towards net zero carbon emissions by 2070 for a sustainable future, has realigned its innovation ecosystem for development of cleaner technologies. The company is working towards development of products and systems in new business areas; such as coal to chemicals, high efficiency thermal plants, rail transportation, defence, aerospace, hydrogen value chain, downstream oil & gas, etc.

In FY 2022-23, BHEL has incurred an expenditure of 691 Crore towards R&D activities, which is approx. 3% of the revenue. This includes expenditure incurred on R&D projects taken up for development of new products, processes and systems as well as efforts made for modifications/ improvements in products and designs against customer requirements. During the year, BHEL has filed 503 patents and copyrights applications, enhancing the company's intellectual capital to more than 5400 nos. Approx. 19% of the company's revenue, amounting to 4,212 Crore has been achieved from its in-house developed products, systems and services. Further details of major developments have been provided in Annexure-VI to the Board's Report.

Implementation of Offcial Language

Offcial Language cells and Offcial Language Implementation Committees have been established in all Units/Divisions/ Offices of BHEL, with Rajbhasha Officers working in all these cells. Additionally, in the last two years, a lot of emphasis has been given on Rajbhasha implementation. More than 100 Rajbhasha Chakras have been formed across the company to motivate the employees to use Hindi in their day to day offcial work and expedite Rajbhasha implementation which has enhanced the use of Hindi across the Company. Quarterly meetings were held by the committees in all the Units/ Divisions including Corporate Office during the year. Several activities in the form of events, workshops, competitions were organized during the year. Your company is also contributing as a member in the Testing Committee of the Memory Based Translation Software ‘Kanthastha 2.0' and its mobile-app version by the Department of Offcial Language, Ministry of Home Affairs, Government of India. Further details have been provided in Annexure-VIII to the Board's Report.

Vigil Mechanism

BHEL advocates the principles of Good Governance, Transparency, Probity and Ethics so as to ensure highest level of integrity in its functioning. The company has in place a full-fledged Vigil Mechanism consisting of Vigilance, Internal Audit, Whistle Blower Policy, Independent External Monitors as well as Board Level Committee.

Vigilance function of BHEL is headed by Chief Vigilance Officer (CVO) who acts as an extended arm of Central Vigilance Commission (CVC) for monitoring the affairs of the Company. Units & Divisions of BHEL have a Vigilance set-up headed by a senior officer reporting to the CVO. A panel of Independent External Monitors (IEMs) is in place to oversee implementation of Integrity Pact, and address concerns related to the same. The Company also encourages reporting of unfair & unethical practices and has a Whistle Blower Policy which provides adequate safeguard to the complainant against victimization. The "Board Level Audit Committee" (BLAC) reviews the functioning of the Whistle Blower / Vigil Mechanism, and annual review of the Vigilance function is also done by CMD / Board of Directors through structured meeting(s). Further, details are provided in Annexure-VIII to the Board's Report.

Health, Safety & Environment (HSE)

BHEL focusses on developing sustainable practices for ensuring the safety & health of its workforce as well as protecting the planet from various environmental impacts of its operations. We believe that good health, safety and environmental performance will result in long-term benefits, in terms of enhanced customer loyalty, valuable partnerships & collaborations and sustainable development. BHEL, in its pursuit of achieving the highest levels of Occupational, Health & Safety and Environmental performance, has got its manufacturing units and Power Sector regions certified under Occupational Health and Safety Certification (ISO 45001:2018) and Environmental Management Systems Certification (ISO 14001:2015). To enhance regular compliance, internal audits of manufacturing units and project sites are also carried out by a team of HSE experts from within the organisation. Further details are provided in Annexure-VIII to the Board's Report.

Data and Cyber Security

In today's hyper connected world, data and cyber security is of paramount importance, especially for the country's foremost engineering organization in heavy engineering sector. In this regard, BHEL has implemented advanced security measures to protect its IT assets and data from cyber threats. These measures include a multi-layered defence system that incorporates the latest technologies such as perimeter security for datacentres, data networks, applications, and end user devices. Further details have been included in Section 1.16 of the Board Report.

Other disclosures

Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo is given at Annexure-VII to the Board's Report.

As per provisions of section 197 of the Companies Act, 2013 read with the Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, every listed company is required to disclose the details of the remuneration of the Directors etc. in the Board report. However, as per Notification No. GSR 463(E) dated June 5, 2015 issued by the Ministry of Corporate Affairs, Government Companies are exempted from complying with provisions of section 197 of the Companies Act, 2013. BHEL being a Government Company, such particulars are not included as part of Board's Report._ Statement pursuant to Section 129 of the Companies Act, 2013 (Form AOC-1) relating to subsidiary companies & joint ventures and Form AOC-2 pursuant to section 134(3)(h) of the Companies Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014 is given at Annexure-IX to the Board's Report.


The Statutory Auditors of your Company are appointed by the Comptroller and Auditor General of India. Three firms of statutory auditors were appointed as joint statutory auditors and four firms were appointed as branch auditors. The names of audit firms appointed for FY 2022-23 are given separately in the Annual Report.

Auditors' Report on the Accounts

The Auditors' Report on Standalone and Consolidated Financial Statements for FY 2022-23 of the Company are given at Annexure- X to the Board's Report. There is no qualification in the Auditors report on the Financial Statements of the Company. The Supplementary Audit report under section 143(6) read with section 129(4) of the Companies Act,2013 issued by the Comptroller & Auditor General of India also forms part of Annexure-X.

Secretarial Audit

In terms of section 204(1) of the Companies Act, 2013, the Company engaged M/s Agarwal S. & Associates, Company Secretaries in whole-time practice, as Secretarial Auditors for conducting Secretarial Audit for FY 2022-23 and their report forms part of Corporate Governance section.

Secretarial Auditor in their Audit Report have observed non-compliance in composition of the Board of Directors as per Regulation 17 (1) (a) & (b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Section 149 (4) of the Companies Act, 2013 and paras 3.1.2 & 3.1.4. of the DPE Guidelines on Corporate Governance on account of (i) resignation of one independent director on 30.05.2022, resulting in the Company not having requisite number of independent directors on its Board and (ii) completion of tenure of two non-executive directors on 27.01.2023, resulting in the Company not having requisite number of non-executive directors on its Board.

The Management noted the observation and explained that BHEL, being a Government Company, the directors, including the independent directors are appointed by the Government of India. The Company has been in constant communication with the Government for appointment of requisite number of independent directors on its Board so as to ensure compliance with Corporate Governance norms enunciated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Companies Act, 2013 as well as the DPE Guidelines on Corporate Governance. The matter of filling up of these vacancies is under process at the end of Government.

Cost Auditors

In terms of provisions of Section 148 of the Companies Act, 2013 and as per the Companies (Cost Records and Audit) Rules, 2014 and amendments thereof, the Board, on the recommendation of the Audit Committee, approved the appointment of seven firms of Cost Accountants as Cost Auditors for auditing the cost accounts of your Company for FY 2022-23. Cost accounts and records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 have been properly maintained and complied with. The detail of cost auditors appointed for FY 2022-23 are given separately in the Annual Report. The Cost Audit Report for FY 2021-22 has been filed under XBRL mode on September 02, 2022, well within the due date of filing and there was no qualification in the cost audit report.

Appreciation and Acknowledgements

Your Directors gratefully acknowledge with deep sense of appreciation, the co-operation and guidance received from the Government of India, particularly the Ministry of Heavy Industries in various spheres of the company's operations and strategic initiatives. We are deeply appreciative of and thankful to various ministries and statutory authorities/ departments of the Government of India for their valuable support and continuous cooperation. The Directors place on record their sincere appreciation towards the Company's valued customers in India and abroad for their co-operation in addressing various issues faced in complex long gestation construction contracts.

The Directors also express their gratitude to the Comptroller and Auditor General of India, professional bodies, Statutory Auditors, Branch Auditors, Secretarial Auditor and Cost Auditors for their constructive suggestions and continuous cooperation. The Directors place on record their sincere appreciation towards the company's esteemed shareholders for the support and confidence reposed by them in the management of the company and look forward to the continuance of in future. The Directors also wish to place on record their appreciation for the continued cooperation received from all the technology collaborators, suppliers and contractors. The support provided by the financial institutions, bankers and stock exchanges are also acknowledged and appreciated.

Last but not the least, your Directors wish to place on record their sincere appreciation for the diligent efforts, hard work and commitment put in by all BHEL employees, who have worked day and night, to meet the company's commitments._

For and on behalf of the Board of Directors of
Dr. Nalin Shinghal
Chairman & Managing Director
Place: New Delhi
Date: July 28, 2023