1.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for amounts to Rs. 15,438.01 (Rs. 11,524.66).
 
 2.  The MCA vide its Notification No. S.O. 301(E) dated 08.02.2011 has
 exempted companies producing Defence Equipments from compliance with
 the following provisions contained in Part II of Schedule VI to the
 Companies Act, 1956, as amended :
 
 Paragraph Particulars
 
 3(i)a Details regarding sales in respect of each class of goods with
 quantities thereof.
 
 3(ii)(a)(1) Value of raw materials consumed giving item- wise break-up
 & quantities thereof.
 
 3(ii)(a)(2) Opening and closing stock of goods produced giving break up
 in respect of each class of goods with quantities thereof.
 
 3(ii)(d) Value of Opening and Closing stock of goods, purchases, sales
 & consumption of raw materials with quantitative break up & Gross
 Income from services rendered.
 
 4 - C Details regarding licensed capacity, installed capacity and
 actual production in respect of each class of goods manufactured.
 
 4 - D (a) Value of imports calculated on CIF basis for the year in
 respect of raw materials, components, spares and Capital goods.
 
 4 - D (b) Expenditure in foreign currency during the financial year on
 account of royalty, know - how, professional, consultant fees, interest
 and other matters.
 
 4 - D (c) Value of imported & indigenous raw materials, components and
 spares consumed & percentage of each to the total consumption.
 
 4 - D (e) Earnings in foreign exchange classified under the following
 heads, namely ;
 
 (i) export of goods calculated on FOB basis
 
 (ii) royalty, know - how, professional and consultant fees;
 
 (iii) interest and dividends;
 
 (iv) other income, indicating the nature thereof.
 
 4.  The Company has discontinued the LTC scheme for non executives
 during the year 2010 - 11 and hence, no actuarial valuation of this
 liability is required. To reflect this change, Accounting Policy No. 15
 (Employee Benefits) has been amended.
 
 5.  Letters requesting confirmation of Balances have been sent in
 respect of Sundry Debtors, Sundry Creditors, Advances and Deposits.
 Wherever replies have been received, reconciliation has been done and
 provisions / adjustments have been made wherever considered necessary.
 
 6.  The Company has analysed indications of impairment of assets of
 each geographical composite manufacturing unit considered as Cash
 Generating Units (CGU). On the basis of assessment of internal and
 external factors, none of the Units has found indications of impairment
 of its assets and hence no provision is considered necessary.
 
 Deeds containing the terms of transfer / grant of land from State
 Governments / State Undertakings have not been finalised in respect of
 86.78 acres valuing Rs. 181.63 (86.78 acres valuing Rs. 181.63) pertaining
 to Panchkula Unit. Out of this, title in respect of land measuring
 0.962 acres (0.962 acres) is under litigation.
 
 Pending finalisation of formal deeds, no provision towards registration
 and other costs have been made.
 
 b) Pending execution of title / sale deeds and handing over of physical
 possession of land allotted to BEL Hyderbad by Andhra Pradesh
 Industrial Infrastructure Corporation (APIIC) admeasuring 5.60 acres
 (5.60 acres) in Mallapur, Hyderabad, no provision towards registration
 and other cost has been made in the books of accounts. Cost of land
 paid to APIIC amounting to Rs. 65.12 (Rs. 65.12) is included in Capital
 WIP-Advances.
 
 c) Based on the Memorandum of Understanding reached with the Defence
 authorities, expenditure on civil works was incurred on land allotted
 to BEL for setting up of the Hyderabad Unit. Pending finalisation of
 the terms and conditions by the appropriate authorities, the cost of
 land measuring 25.11 acres (25.11 acres) has not been provided in the
 books of accounts.
 
 d) Land acquired free of cost from the Government in some units has
 been accounted at a notional value by corresponding credit to Capital
 Reserve.
 
 e) The Company has installed Windmill Generator at two locations. The
 leasehold land of the Windmill Generator-I is capitalised at the
 nominal value of Rs. 5 (Five Rupees only) as the upfront lease cost is
 Nil. The leasehold land of Windmill Generator-II is capitalised in the
 year 2007-08 at the cost of Rs. 114. In both the cases, the lease
 agreement for the land is pending finalisation.
 
 f) Freehold land of Pune Unit measuring 3,897.52 square meters (cost Rs.
 0.48) is to be handed over to Pimpri -Chinchwad Municipal Corporation
 for the purpose of road widening at an estimated provisional
 compensation of Rs. 209.04 based on the rates fixed by Moolya Nirdharan
 Suchi of Government of Maharastra.
 
 7. a) In pursuance of the Companies (Amendment) Act, 1988 and Schedule
 XIV thereof, increased rates of depreciation on straight line method in
 accordance with the Schedule XIV have been adopted wherever required,
 only on additions on or after 01.04.1987.
 
 b) Wherever the rates of depreciation applied prior to 01.04.1987 are
 higher than the rates specified in Schedule
 
 XIV to the Companies Act, 1956, they have been continued. However,
 additions forming part of existing machines are depreciated on the same
 basis as the original machines.
 
 c) Depreciation for multiple shifts is charged on block of assets for
 the full year.
 
 8.  a) Raw Materials and Components include Rs. 2,670.24 (Rs. 2,765.88)
 being materials with subcontractors, out of which Rs. 90.19 (Rs. 163.38) of
 material is subject to confirmation and reconciliation.  The impact, if
 any, on consequent adjustment is considered not material.
 
 b) Pending reconciliation, stock verification discrepancies for the
 year [shortages of Rs. 42.24 (Rs. 141.36) and surplus of Rs. 16.13 (Rs. 82.30)]
 have not been adjusted in the accounts.
 
 9.  Liability, if any, in respect of labour matters under dispute
 before various judicial authorities is not ascertainable, but is
 expected to be not material.
 
 10. The exchange rate variations arising on transactions in foreign
 currency between the date of recording of such transactions and the
 settlement / the Balance Sheet date resulting in a net exchange gain of
 Rs. 2,648.84 (gain Rs. 6,663.21) during the year have been included in the
 Profit and Loss Account in Schedule No. 14 - Other Revenues.
 
 11. Excise Duty which is paid during the year in respect of turnover
 is shown as a deduction from turnover (Gross) in the Profit and Loss
 Account. Excise Duty - Others which is included in the Schedule 17 -
 Other Expenses of Manufacturing, Administration, Selling &
 Distribution represents incremental provision of Excise Duty on
 Finished Goods, Excise Duty on Sale of Scrap, etc.
 
 iii) The amount of interest due and payable for the period of delay in
 making payment (which have been paid but beyond the appointed day
 during the year) but without adding the interest specified under the
 Act: Rs. 1.17 (Rs. 0.17).
 
 iv) The amount of interest accrued and remaining unpaid at the end of
 the year ending 31st March 2011 : Rs. 2.45 (Rs. 2.84).
 
 v) The amount of further interest remaining due and payable even in the
 succeeding years, until such date when the interest dues as above are
 actually paid to the small enterprise, for the purpose of disallowance
 as a deductible expenditure under section 23 of MSMED Act : Rs. 0.55 (Rs.
 2.50)
 
 The information has been given in respect of such suppliers to the
 extent they could be identified as Micro & Small Enterprises on the
 basis of information available with the Company.
 
 12.  Contingent Liabilities :
 
 a.  Claims not              Rs. 10,834.02       (Rs. 8,654.70) 
 acknowledged as debts
 
 b.  Outstanding             Rs. 26,774.99      (Rs. 22,658.62) 
 Letters of Credit
  
 c.  Others                  Rs. 397.30         (Rs. 291.81)
 
 d.  Provisional Liquidated Damages upto 31.03.2011 on unexecuted
 customer orders where the delivery date has expired is Rs. 8,698.05 (Rs.
 4,873.96)
 
 13.  The following disclosure is made as per AS-7 (Accounting for
 Construction Contracts) in respect of accounting policy 3 (i) (c)
 relating to revenue recognition on contracts :
 
 a) Contract revenue recognised during the year Rs. Nil (Rs. Nil)
 
 b) No Contract Revenue is recognised in the current year. Upto year
 2008 - 09, contract revenue was recognised using the percentage of
 completion method.  Ratio of the actual cost incurred on the contracts
 upto 31.03.2009 to the estimated total cost of the contracts, was used
 to determine the stage of completion.
 
 c) Aggregate amount of cost incurred : Rs. 43,009.84 (Rs. 43,009.84).
 
 d) Recognised profit upto 31.03.2011 (net of provision for
 contingency): Rs. 3,522.08 (Rs. 2,923.33).
 
 e) Amount of advances received and Outstanding as at 31.03.2011 -Rs.48.85
 (Rs.48.85)
 
 f) The amount of retention -Rs. 1,466.65 (Rs. 1,404.70)
 
 14.  a) Wage revision in respect of non - executives has been
 implemented during the year 2010 - 11.
 
 b) As per the guidelines issued by the Department of Public Enterprises
 (DPE), GOI on the pay revision for Officers of PSUs, the company has
 submitted a proposal to the Ministry of Defence, GOI for a Pension
 Scheme (Defined Contribution Scheme) for Executives which has been duly
 considered by the Board of Directors. Pending approval by the
 Administrative Ministry, a provision for Rs. 6,900.91 has been made in
 the accounts upto the year 2010 - 11.
 
 15.  As per the provisions of Accounting Standard 15 (R), the following
 information is disclosed in respect of Employee Benefits :
 
 Gratuity Scheme :
 
 The Company has a Gratuity Scheme for its employees, which is a funded
 plan. Every year, the Company remits funds to the gratuity trust to the
 extent of shortfall of the assets over the fund obligations, which is
 determined through actuarial valuation. As per the Gratuity Scheme,
 gratuity is payable to an employee on the cessation of his employment
 after he has rendered continuous service for not less than 5 (five)
 years in the Company. For every completed year of service or part
 thereof in excess of six months, the Company shall pay gratuity to an
 employee at the rate of 15 (fifteen) days salary based on the last
 drawn basic & dearness allowance.
 
 BEL Retired Employees'' Contributory Health Scheme (BERECHS) :
 
 The Company has a contributory health scheme for its retired employees
 BEL Retired Employees'' Contributory Health Scheme (BERECHS), which is
 a non-funded scheme.  The primary objective of the scheme is to provide
 medical facilities to employees retiring on attaining the age of
 superannuation, or on VRS. Benefits under the Scheme shall be available
 to the employees who become members and their spouses only. The Company
 takes insurance cover for in-patient treatment. In addition to the
 annual insurance premium, the Company bears 50% of the medicine cost
 and 75% of the cost of diagnostic tests for outpatient treatment and
 for the treatment of specified diseases, the Company bears the full
 cost of treatment, over and above the insurance coverage.
 
 The following tables summarise the components of net benefit expense
 recognised in the Profit and Loss Account and the funded status and
 amounts recognised in the Balance Sheet for the plan as furnished in
 the disclosure report provided by the actuary.
 
 Long Term Compensated Absence Scheme :
 
 The Company has a Long Term Compensated Absence Scheme for its
 employees, which is a Non - Funded Scheme.  The employees of the
 Company are entitled to two types of Long Term Compensated Absences :
 Annual Leave (AL) and Sick Leave (SL). The Scheme provides for
 compensation to employees against the unavailed Leave (both AL & SL) on
 attaining the age of superannuation, VRS, resignation (only AL) and
 death. AL can also be encashed during service.
 
 Provident Fund Contribution :
 
 During the year the Company has recognised an amount of Rs. 6,083.69 (^
 5,633.16) towards contribution to Employees Provident Fund and Pension
 Schemes in the Profit and Loss Account. The guidance on implementing AS
 15 (R) issued by the Institute of Chartered Accountants of India states
 that provident funds setup by employers that guarantee a specified rate
 of return and which require interest shortfalls to be met by the
 employer would be defined benefit plans in accordance with the
 requirements of paragraph 26(b) of AS 15(R) and actuarially valued.
 
 Pursuant to the Guidance Note, the Company has determined on the basis
 of actuarial valuation carried out as at 31st March 2011, that there is
 no liability towards the interest shortfall on valuation date under
 para 55 and 59 of AS 15 (R) (having regard to terms of plan that there
 is no compulsion on the part of the Trust to distribute any part of the
 surplus, if any, by way of additional interest on PF balances).
 
 Experience adjustments for funded schemes
 
 The disclosure with respect to paragraph 120 (n) of AS - 15(R) towards
 experience adjustments are being made for funded schemes viz.,
 Gratuity. As long term compensated absence and BERECHS are not funded,
 such disclosure is not required.
 
 The best estimate of contribution to be paid towards Gratuity during
 the annual period beginning after the Balance Sheet is Rs.2,811.22 (Rs.
 3,198.76). In case of Provident Fund, there is no actuarial liability
 assessed for shortfall in interest as at year end.
 
 16.  The Company is engaged in manufacture and supply of strategic
 electronic products primarily to Defence Services and hence, it would
 not be in public interest for the Company to present segment
 information. For similar reasons, the Company has been granted
 exemption from publication in the annual accounts, the quantitative
 particulars required under Schedule VI to the Companies Act, 1956. The
 SEBI has also granted exemption, for these reasons, to the Company from
 publication of segment information required under Accounting Standard
 17 (AS 17) in quarterly unaudited financial results. Hence segment
 information required under Accounting Standard 17 (AS 17) is not
 disclosed. Such non - disclosure has no financial effect.
 
 19.  As per the provisions of Accounting Standard 19, the following
 information is disclosed in respect of Finance Lease :
 
 a) The net carrying amount (WDV) at the Balance Sheet date in respect
 of vehicles taken on lease is Rs. 32.95 (Rs. 63.44).
 
 b) Total minimum lease payments as at the Balance Sheet date is Rs. 45.74
 (Rs. 85.49) and the present value is Rs. 41.05 (Rs. 72.61).
 
 17.  Related Party Disclosure :
 
 (a) The related parties and their relationship with the Company are as
 under :
 
 Subsidiary Company viz., BEL Optronic Devices Ltd.  (Equity Holding
 92.79 %) ;
 
 Joint Venture Companies :
 
 GE BE Private Ltd. (Equity Holding 26 %); and BEL Multitone Private
 Ltd. (Equity Holding 49 %)
 
 (b) Management Contracts including deputation of Employees :
 
 Two Officials (Managers) of BEL have been deputed to BELOP (Subsidiary)
 and their salary, etc., is paid by BELOP during the year as per terms
 and conditions of employment.
 
 18.  Previous year''s figures have been regrouped wherever necessary.
 Figures in brackets relate to previous year.