Your Directors have pleasure in presenting the 49th Annual Report and Audited Accounts
for the year ended 31.03.2013.
( Rs in Crs.)
||( in Crs.)
|Revenue billed including consortium supplies
|Revenue including excise duty
|Revenue from operations
|Profit before Depreciation, Interest and Tax
|Profit Before Tax
|Profit After Tax
|Profit available for appropriations
|Profit & Loss Account
Efforts are continued in identifying, developing & evaluating the potential
suppliers. 138 vendors have been included in the Approved Vendor list during the year.
Vendors who are consistent in quality and self-reliable are encouraged by awarding
"Self Certification" status for their supplies. During the year, 19 firms have
been accorded "Self-certification" status.
Periodic process / system audits are being conducted and necessary feedbacks are given
to the vendors for process / system improvements right from development stage to ensure
quality in their supplies. During the year, around 70 process audits have been carried
To achieve higher level of customer satisfaction, cross functional teams & Quality
Improvement Teams are active throughout the company to address field issues and to gather
customer feedback to enhance product & service quality.
RESEARCH & DEVELOPMENT:
The Company`s Research & Development Centre continues to play a vital role in the
design and development of products, critical aggregates, indigenization activity etc.
During the year, R&D has developed and launched certain products in Mining &
Construction and Defence segments.
The information on R&D, Technology Absorption, Adaptation and Innovation including
the products developed by the
Company during the year is at Annexure-I.
The working capital requirements were met from the internal resources and credit
facilities availed from banks. There was no overdue installment of principal and interest.
The Company`s contribution to exchequer was in the order of Rs 628.76 crores during the
year by way of Excise Duty, Customs Duty, Sales Tax, Income Tax, Wealth Tax, Service Tax,
FOREIGN EXCHANGE EARNINGS AND OUTGO:
During the year, the Company`s foreign exchange earnings stood at Rs 179.42 crores. The
total foreign exchange utilized during the year was Rs 672.90 crores.
A sum of Rs 1.23 crores was incurred towards deputation of personnel abroad for
business/ export promotion, after-sales-services and training.
The Company has not accepted / renewed any fixed deposits during the year, and there is
also no outstanding Fixed Deposits.
LISTING OF DEBT SECURITIES:
3000 Secured Redeemable Non-convertible Debentures of face value of Rs 10 lakhs
aggregating to Rs 300 Crores have been allotted to M/s Axis Bank Limited on 18.05.2012 on
private placement basis and the same were listed on BSE Debt Segment on 02.07.2012.
DELISTING OF EQUITY SHARES:
Disclosure in terms of Regulation 7(1)(d) of SEBI (Delisting of Equity Shares)
Regulations, 2009 The equity shares of your Company are delisted from the Bangalore
Stock Exchange Limited (BgSE) w.e.f 15.01.2013. This decision was taken since the equity
shares of the Company are not traded on BgSE for a long time. However, the Company`s
equity shares continued to be listed on the Bombay Stock Exchange Limited (BSE) and the
National Stock Exchange of India Limited (NSE). This will provide sufficient access to the
investors / shareholders for their dealing with the Company`s equity shares across the
country through the nation-wide trading terminals of BSE and NSE.
The Company has an independent Vigilance Department headed by a full-time Chief
Vigilance Officer. The scope of work of the Vigilance Department has been set out to
address risk factors in procurement and administration through investigation of complaints
and through preventive measures with the objective of promoting integrity, transparency,
accountability and equity as also increasing efficiency and productivity by leveraging
technology in the organisation. The functional units of Vigilance department, viz.,
Investigation Wing, Disciplinary Wing, Anti-corruption Wing, Preventive Vigilance Wing and
Technical Wing deal with various facets of vigilance mechanism. Several initiatives were
taken in the process of creating awareness, sensitization and ensuring accountability,
probity and transparency within the overarching vigilance functions of punitive,
preventive and surveillance and detection.
A risk based approach to complaint resolution has been adopted whereby after resolving
complaints, risks in the system are identified and corrective measures recommended
reducing the scope for corruption. Accordingly, several system improvement recommendations
were made and implemented.
To mark the observance of Vigilance Awareness Week-2012 `VIG-KIRAN Ver.2`, a special
journal, on the theme `Transparency in Public Procurement` was released with the objective
of plugging the knowledge gap in public procurement measures and aid in setting up sound
public procurement system. Beginning with the General Financial Rules 2005 embodying the
basic tenets of public buying namely, `every authority delegated with the financial
powers of procuring goods in public interest shall have the responsibility and
accountability to bring efficiency, economy, transparency in matters relating to public
procurement and for fair and equitable treatment of suppliers and promotion of competition
in public procurement` (GFR 137), all regulations, guidelines, standards, governing
the process of public procurement as well as e-procurement has been digitized in a CD and
appended to `VIG-KIRAN Ver.2` constituting its USP.
A meet with the Vendors of BEML to engage them in the reform process of Public
Procurement, in which they have an equal stake, was considered fitting during the
Vigilance Awareness Week 2012, particularly, in view of the theme, being `Transparency in
Public Procurement`. Vendor meet was organized in three divisions of BEML, Bangalore,
Mysore and KGF with great success. A questionnaire was designed and circulated to the
Vendors present at the meet to elicit their response regarding the transparency of the
procurement processes adopted by BEML and their awareness of them. They were asked to rate
their experience with the e-procurement system at BEML Ltd on a scale of 0 to 5, with 0
representing `least transparent` and 5 representing `most transparent`. In response 59
vendors rated their experience, of them 34 have rated it between 4 to 5, 17 vendors have
rated it between 3 to 4 and 8 vendors have rated it between 2 to 3, affirming thereby,
that the e-Procurement system at BEML Limited is closer to being `most transparent`.
In response to the priority flagged by the Central Vigilance Commissioner for the need
to improve the knowledge base in the use of e-procurement tools like Reverse Auction in
the Defence PSEs, a workshop on `e-Procurement and Reverse Auction` was organized by BEML
Vigilance Department in association with the Central Vigilance Commission and Ministry of
Defence. 34 participants, comprising Chief Vigilance Officers and Senior Executives
dealing with Procurement, from nine Defence PSEs located all over India and OFB attended
An Annual Inspection Plan of the Regional/District Offices of Marketing division of
BEML was drawn up. A team of three Vigilance Officers from different divisions with
diverse background are conducting the Inspection according to the Plan.
Objective and effective vigilance administration which is vital to overall efficient
administration and governance is being ensured.
A report on Corporate Governance and Management Discussion and Analysis Report along
with a Compliance Certificate from the Auditors as required under the Listing Agreement
entered into with the Stock Exchanges is annexed to this report.
SUBSIDIARY COMPANY :
M/s Vignyan Industries Limited (VIL):
VIL has recorded the turnover of Rs 27.47 crores as against Rs 39.21 crores, which
works out reduction in turnover of 30% over the previous year. The value of production of
the Company stood at Rs 25.67 crores against Rs 45.29 crores and the Company incurred a
loss of Rs 2.28 crores as against a profit before tax of Rs 0.65 crores. The prime reason
for the low performance was poor demand for the castings from customers due to market
recession and non-availability of power and foundry grade sand.
The Company is planning to explore opportunities to supply various casting requirements
to customer other than Mining & Construction of BEML. Accordingly, Defence business
related steel castings like Track Shoes for T-72, ARVs, BMP, etc., would be developed and
produced by VIL. In the area of Rail business, steps are being taken to focus on huge
opportunities for castings like Axle Box, Buffer Assembly, etc., to improve the
performance level of the Company.
The statement and particulars relating to VIL, pursuant to Section 212 of the Companies
Act, 1956 is attached. In accordance with Section 212(8) of the Companies Act, 1956, your
Company has been exempted from attaching the Balance Sheet, Statement of Profit and Loss,
Cash Flow Statement, Auditors` Report, Directors` Report, etc., of the subsidiary Company
to the Balance Sheet of BEML Limited as per Government of India Order No.51/12/2007-CL-III
dated 08.02.2011 issued under General Circular No.2/2011. However, the Company will make
available these documents upon request by any member of the Company.
JOINT VENTURE COMPANY:
M/s. BEML Midwest Limited:
A JV Company, M/s BEML Midwest Limited incorporated on 18.04.2007 at Hyderabad with
BEML having 45% share, M/s Midwest Granite Pvt. Ltd., and P T Sumber Mitra Jaya of
Indonesia as partners with 55% share. The Company has been established to capitalize the
growing business opportunities in the mining segment. However, due to certain unauthorized
transactions and the oppression and mismanagement by the nominees of M/s Midwest Granite P
Limited, BEML had filed an application before Hon`ble Company Law Board seeking for
suitable relief. Hon`ble CLB vide its order dated 01.06.2012 directed the Central
Government to appoint an inspector to investigate the affairs of BEML Midwest Limited. In
the meantime, as advised by legal experts, the Company has preferred two appeals before
Hon`ble High Court of Andhra Pradesh at Hyderabad on 30.07.2012 against the said order of
CLB. The appeals are pending disposal before the said High Court.
The Micro, Small and Medium Enterprises continue to get support and preference from
BEML wherever there is shortage of in-house capacity. The company extends technical
guidance and requisite support to these industries wherever required. Our quality control
personnel visit the industries to assist and ensure that the quality of the products meet
the requisite standards.
During 2012-13, the Company procured items worth Rs 145.04 crores from the said
category of enterprises.
Your Company ensured compliance of the Official Languages Act, 1963, and the
Rules made there under and administrative instructions regarding use of Hindi received
from the Department of Official Language and Ministry of Defence from time to time.
Your Company has been adjudged with TOLIC Rajbhasha shield for commendable
progressive use of Hindi during the year 2011-12, which gives the mark of continuous
efforts in propagation of Official Language Policy in the Company.
Hindi training for all the three courses viz., Prabodh, Praveen and Pragya under
Teaching Scheme of Ministry of Home Affairs, Department of Official Language were
arranged regularly. A total of 270 employees have been trained during the year under
Two officials of the Company have been trained in Computer Training programme in
Hindi organised by Central Central Hindi Training Institute, Ministry of Home Affairs.
To inculcate interest and efficiency among the staff, 12 Hindi workshops were
organized for 204 employees at Corporate Office and Business Complex Offices during the
Hindi Fortnight was observed with great zeal in the Corporate Office, all the
Business Complex Offices and Regional offices of Hyderabad, Mumbai and Chennai from
14.09.2012 to 28.09.2012. During this period, to motivate the employees competitions viz.
Hindi Quiz, Hindi Crossword and Noting and Drafting, were organized and the winners of
these competitions were awarded. Further, Hindi Day i.e. 14.09.2012 was observed in
accordance with the guidelines issued by the Ministry of Defence and Department of
Official Language, Ministry of Home Affairs.
During the period, all translation work and Hindi typing work relating to Annual
Reports, Technical Reports, C&AG Audit Paras, MoUs, Reports on SC/ST, RTI, Reservation
policy, Standing orders, Product Profiles, Advertisement Materials and standard forms were
attended to with full efficiency and dedication.
All the sign boards outside the premises of the Company displayed tri-lingually
i.e. Kannada (Regional Language), Hindi and English and the name plates which are
displayed within the premises of the Company are also in tri-lingual form.
A session on "Official Language Policy" is included in all in-house
Hindi Library is functioning in Corporate Office with good number of Hindi Books
and Hindi periodicals. Hindi Dictionaries, Administrative Glossaries, Help-literature are
supplied to the staff to encourage them to do official work in Hindi.
Website of BEML is made available in Hindi also.
BEML won Safety Award 2012 under very large engineering industries category
conducted by Department of Factories and Boilers, Government of Kerala for its Palakkad
The manpower strength as on 31.03.2013 stood at 11,005 as against 11,644 of the
Representation of SC/ST & Ex-Servicemen category-wise as on 01.01.2013 and
Representation of SC/ST/Ex-Servicemen as on 01.01.2013
SC/ST and Ex-servicemen
|Category / Group
Strength As on
No. of Scheduled Caste
Recruitment during 2012
HUMAN RESOURCES DEVELOPMENT & INDUSTRIAL RELATIONS
The HR Department identified several thrust areas for continuously updating technical /
professional knowledge and skills of employees and brings about attitudinal changes in
fostering a performance driven work culture in all areas of operations particularly at
shop floors. During the year, the Company organized several in-house and external training
programs covering 26,755 man-days.
The overall industrial relation situation in the Company was cordial during the year.
CORPORATE SOCIAL RESPONSIBILITY (CSR) & SUSTAINABLE DEVELOPMENT (SD) ACTIVITITES
CSR and SD are a modern philosophy which states that all individuals and organizations
are obligated to help the community at large, while preserving its environment. This is
typically an active effort involving acting on a social issue or prevention of committing
harmful acts to the environment. Social responsibility is an idea that has been of concern
to mankind for many years. Over the last two decades, however, it has become of increasing
concern to the business world. In the past, businesses primarily concerned themselves with
the economic results of their decisions. However, today businesses must also reflect on
the legal, ethical, moral and social consequences of their decisions. This has resulted in
the concept of CSR and SD.
BEML being the one to inculcate good practices has envisioned `to commit for enhanced
value-creation for the society, shareholders, other stakeholders, and the communities by
takingup activities and initiatives for sustainable growth for the society, with
environmental concern`. In this endeavour, the Company has undertaken various activities
like Community Development, Promoting Excellence in areas like Education, Sports, Science,
Technology Environment Management, Preserving National Heritage and Culture and others.
BEML recognizes that effective management of social and environmental risks can improve
its business performance. This realization has led to increased importance towards
managing its social and environmental performance as part of its fiduciary responsibility.
Towards this endeavour, BEML has a structured committee from the Division level to the
Sub-Committee level to guide and monitor the successful identification and implementation
of the projects in line with the MoU guidelines. The CSR Sub-Committee at the corporate
level is headed by Director-HR and the SD Committee headed by an Independent Director.
There are several on-going CSR and SD activities undertaken by BEML and one of them is
setting up of a new Wind Mill project with 18 MW capacity at Bagalkot which is under
process and in the direction of being self-sufficient. With the implementation of this
project, 90% of BEML`s requirement of energy will be met and also to mitigate the quantum
of Carbon deposits. The Company through its Windmill at Bagalkot has mitigated the
emission of 7847 Tons of Carbon dioxide for the current year.
A few of the important projects successfully completed for the year 2012-13 towards
fulfilling its obligations and achieving its benchmarked goals in the area of CSR are as
The Company has established 8 Nos. of Borewells to supply drinking water to
BGML Township at the cost of Rs 49.83 Lakhs for providing safe and clean drinking water
to the people of BGML Township.
The Company has provided vocational training to 52 persons of the employees`
dependants and the local population in areas such as Para Medical, Tailoring, Computer
application,Typing , Shorthand, Music/ Dance courses etc., for gainful employment.
The Company in order to provide medical facilities to the Ex-BGML employees and
their families is conducting free medical camps on regular basis in addition to
distributing free medicines. For the year 2012-13, the company has conducted 112 Mobile
Medical camps for providing medical services to BGML Township at KGF.
T h e C o m p a n y a d h e r i n g t o i t s responsibility towards protecting
and preserving its environment has through the years has been creating `Green Belts` in
and around its area of operations and its immediate community. For the present year, the
Company has planted / distributed around 15000 saplings in & around all its Divisions
The Company has sponsored an amount of Rs 30,000/- to the Society for Disability
and Rehabilitation Studies (New Delhi) for organizing a 3-day National Congress on
"Disability, Barrier-Free Campus and Higher education in India" under CSR
The Company has envisaged `Five year CSR Plan` and `Long Term Sustainable
Development Plan` in line with its policy and the MoU guidelines to ensure fulfilling its
responsibility to the society in the long run.
In addition to the above, there are several CSR & SD projects that the Company has
been carrying out as an on-going process. A few of the on-going projects are listed as
BEML runs one Junior College and two Nursery Schools at KGF and one at
Bangalore. These institutions, although meant primarily for the children of employees also
caters to a large extent to the local population. The company has been spending an amount
of Rs 144 lakhs (approx) per year, towards running of these institutions.
In addition, BEML runs a Kendriya Vidyalaya project school at KGF, for the
benefit of the employees` children and also for the local population. The Company has
provided School building, Furniture & other infrastructure, Attender for Mid-day meal
programme and night watchmen.
The Company has sponsored a scheme for award of Scholarship to the SC/ST s t u d
e n t s p u r s u i n g f u l l t i m e undergraduate Engineering course in Engineering
Institutions all over the country. The scheme also aims at providing employment to
students who successfully complete the Engineering programme.
As a unique Corporate initiative, Company has introduced a scheme wherein, such
of the students who could not pursue further education, after X/XII Std viz., ITI, Diploma
etc., but have the requisite aptitude are being considered for specific training with
requisite emoluments in BEML through enrollment in training schemes tailored to suit
Environmental Pollution control measures such as effluent treatment plants have
been constructed inside the factory premises of the Production Units for treatment of
domestic / industrial effluents. Further, treatment plants / oxidation ponds for treatment
of natural process of treating effluents have been installed in various locations inside
the factory and township. Treated effluent water is being utilized by the Landscaping
Department in the production unit.
Artificial tanks have been constructed in Manufacturing Complexes to harvest
rain water, restrict soil erosion and to raise ground water level. Storage yard facility
for Hazardous waste at salvage stores at Division is constructed as per ISO 14001
The Company has extended all help and support to the Labour Welfare Funds
functioning in the production units for the benefits of Employees, their dependants and
local population. The LWF conducted training programmes in Tailoring, Computer, Typing /
Shorthand course, Diploma course in Laboratory Technology, Job Oriented Courses, Music /
Dance classes, spoken English Course, Summer camps for art / painting and sports and
various entertainment activities.
Corporate Social Responsibility and Sustainable Development are vital elements for the
bottom-line benefits in all the business processes of the Company. The Company for the
future is expected to have undergone significant transformation such that CSR no longer
becomes managed as a separate deliverable, but is part of the experience of being an
employee in an organization that lives its values. Therefore, your Company will remain
firmly committed and will continue in its endeavor for fulfilling its social obligation to
its community and society at large by incorporating CSR and SD in all its business
ENVIRONMENT AND POLLUTION CONTROL
In order to protect the environment in and around the factory premises/township, tree
plantation were undertaken. Saplings of various types of avenue tree/flower bearing trees
were planted in the vacant lands belonging to the Company for maintaining ecological
balance in the surrounding areas. Further, measures have also been taken to protect the
existing flora and fauna from any basic interference.
Effluent treatment plants have been constructed inside the factory premises of the
production units for treatment of domestic/industrial effluents. Further, treatment
plants/oxidation ponds for treatment of natural process of treating effluents have been
installed in various locations inside the factory and township. Treated effluent water is
being utilized by the Landscaping Department in the production unit. Artificial tanks have
been constructed in Manufacturing Complexes to harvest rain water, restrict soil erosion
and to raise ground water level. Storage yard facility for Hazardous waste at salvage
stores in the divisions is constructed as per ISO 14001 requirements.
In a bid to harness renewable energy, the Company commissioned a 5 MW Wind Mill during
the year 2007-08 in Gadag District of Karnataka. The energy generated by the plant is fed
into the KPTCL grid and sold to Hubli Electricity Supply Co. Ltd., and as of 31.03.2013,
513 lakh kWh power has been generated enabling green house gas reduction. Further, your
company is setting up an additional 18 MW Wind Mill Farm to develop green energy towards
being self-sufficient on power requirements.
The Company continues to give emphasis on conservation of energy. The efficiency of
energy utilization is closely monitored to attain higher level of effective conservation.
Some of the measures adopted during the year for energy conservation are:
a) Replacement of 40 Inverter welding sets (18kw) in place of old type kirloskar make
motor generator welding set (30kw). b) Introduction of 2 Nos. 5000 litres capacity solar
water heating system in Workers Canteen for pre-heating of water at 60 degrees centigrade.
c) Introduction of 150W metal halide high bay fitting for street lights in place of
800W HPMV lamp at various places in the unit premises.
d) Introducing 150 KVA energy saver unit for major assembly hanger high bay lights.
e) HT 135 installation surrendered and merged with HT 92 installation thereby saving
fixed charges on 1200 KVA.
f) Installation of ESD for machine ship high bay lights (half portion). g) Replaced 35
nos. of 125 watts induction type fittings in place of 250 watts at sheet metal hangar.
h) Establishment of Solar Power Perimeter
Lighting at EM Division, KGF Complex in place of high energy halogen / HPMV lamps.
The particulars as prescribed under sub-section (1)(e) of Section 217 of the Companies
Act, 1956, read with the Companies (Disclosure of particulars in the Report of the Board
of Directors) Rules 1988, are annexed to this report.
PARTICULARS OF EMPLOYEES
There were no employees of the Company who received remuneration in excess of the
limits prescribed under Section 217(2A) of the Companies Act, read with the Companies
(Particulars of Employees) Rules, 1975.
M/s. Padmanabhan Ramani & Ramanujam, Chartered Accountants, Chennai, were appointed
by Comptroller & Auditor General of India as Statutory Auditors for the year 2012-13.
Reply to the observations made in the report of the Auditors on the Accounts is given
in the addendum to this report.
Your Company has appointed M/s Rao, Murthy & Associates, Bangalore, as Cost
Auditors for the year 2012-13 with the approval of Central Government for
a) Conducting Cost Audit of `Heavy Earth Moving Equipments` under the head `Motor
Vehicles` at KGF, Mysore and Palakkad Divisions, b) Conducting Cost Audit of `IC Engines`
under the head `Engineering Industries` at Engine Division, Mysore, as per the Companies
(Cost Audit Report) Rules, 2011, and c) Submitting the Compliance Report in
respect of Rail Coach Division, Bangalore and Hydraulic & Power-line Division, KGF,
as per the Companies (Cost Accounting Records) Rules, 2011.
The President of India shall appoint the Directors of the Company from time to time and
also shall determine the terms of office of such Directors as provided under Article 97 of
the Articles of Association of the Company. Accordingly, the following changes on the
Board of your Company were effected during the year as per the directives of the President
Shri P.K. Kataria, Additional Financial Adviser & Joint Secretary on
13.06.2012 was appointed as Part-time Government Director in place of Dr. S.C. Pandey.
However, Shri Kataria was replaced by Shri Rajnish Kumar, Additional Financial Adviser
& Joint Secretary with effect from 02.08.2012.
Shri P. Dwarakanath, who was Chairman & Managing Director (CMD) In-charge
was appointed as CMD with effect from 09.10.2012. Shri Dwarakanath took charge on
10.10.2012 as CMD.
Shri C. Balakrishnan and Shri N.P. Gupta, Ex-Secretaries to the Government of
India and Shri Suhas Anand Bhat, Ex-CMD, Indian Overseas Bank were appointed as
Non-official (Independent) Directors on the Board of the Company with effect from
15.10.2012 in place of Shri M.B.N. Rao, Shri J.P. Batra and Shri J.P. Singh, who ceased to
be Independent Directors with effect from 07.07.2012.
Shri P.K. Mishra, Joint Secretary (Electronic Systems), Department of Defence
Production, MoD, was appointed as Part-time Government Director with effect from
02.11.2012 in place of Smt. Rashmi Verma.
Shri D K Hota was appointed as Director (HR) with effect from 01.07.2013 in
place of Dr. M. Nellaiappan.
The Board placed on record its deep appreciation of the valuable services rendered by
Dr. S.C. Pandey, Shri P.K. Kataria, Shri M.B.N. Rao, Shri J.P. Batra, Shri J.P. Singh,
Smt. Rashmi Verma and Dr. M. Nellaiappan.
DIRECTORS ` RESPONSIBILITY STATEMENT
The Board of Directors of the Company \confirm:
i) that in the preparation of the annual accounts, the applicable accounting standards
have been followed and there has been no material departure ;
ii) that the selected accounting policies were applied consistently and the Directors
made judgements and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company as at 31.03.2013 and of the profit of the
Company for the year ended on that date ;
iii) that proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act for safeguarding
the assets of the Company and for preventing and detecting fraud and other irregularities
iv) that the annual accounts have been
prepared on a going concern basis.
Your Directors express their hearty thanks to the Company`s valued customers, in
particular Defence Services, M/s Coal India Limited and its Subsidiaries, M/s. Singareni
Collieries Company Limited, Railway Board, M/s Steel Authority of India Limited, M/s Delhi
Metro Rail Corporation, M/s Bangalore Metro Rail Corporation and M/s Jaipur Metro Rail
Corporation for their patronage and confidence in the Company. The Directors also
acknowledged and thanked all collaborators, vendors and other service providers for their
valuable assistance and cooperation extended to the Company.
The Directors express their appreciation to the members of Consortium of Banks and
other Bankers of the Company and Financial Institutions for their continued support to the
Company`s operations. The Directors also thank all the shareholders / investors for
reposing continued confidence in the Company.
The Directors wish to thank the Comptroller & Auditor General of India, the
Principal Director of Commercial Audit & Ex-officio Member, Audit Board and Statutory
Auditors for their valued co-operation.
The Directors also gratefully acknowledge the valuable support and assistance received
from various Ministries of Government, in particular Ministry of Defence, Ministry of
Coal, Ministry of Mines, Ministry of Steel, Ministry of
Railways and the Ministry of External Affairs. The Directors are also grateful to the
Government of Karnataka and Kerala for the support and co-operation extended to the
Your Directors take this opportunity to place on record their appreciation for the
invaluable contribution made and excellent co-operation extended by the employees and
executives at all levels for the continued progress and prosperity of the Company.
For and on behalf of the Board of Directors
Chairman & Managing Director
FORM - A (See Rule 2)
Form for disclosure of particulars with respect to Conservation of Energy
||POWER AND FUEL CONSUMPTION
||a) Purchased :
||Cost / Unit ( Rs )
||b) Own Generation :
||i) Through Diesel Generator
||Units per ltr. of Diesel oil (Kwh)
||Cost/Unit ( Rs )
||ii)Through Steam Turbine/Generator
||Units per ltr. of fuel oil / gas (Kwh)
||Cost/Unit ( )
||COAL (Specify Quality & where used)
||Total Cost (Rs )
||Average Rate (Rs )
||FURNACE OIL (Diesel for Boiler)
||Quantity (Kilo Litres)
||Total amount (Rs )
||Average Rate (Rs )
||OTHERS / INTERNAL GENERATION
||Quantity (Diesel in ltrs.)
||Total Cost (Rs )
||Average Rate (Rs )
||CONSUMPTION PER UNIT OF
||Products (with details) unit
||Coal (specify quality)
||Diesel in litres
Absorption disclosure particulars with respect to technology :
RESEARCH & DEVELOPMENT (R&D):
1. SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE COMPANY:
The R&D at BEML has designed and developed number of high technology products and
aggregates for Construction & Mining, Rail & Metro and Defence sectors as per
customer requirements without any collaboration and the same have been manufactured and
launched for customer trials.
Depending on the sectoral needs for the year 2012-13 R&D, BEML has launched the
following products / projects:
Mining & Construction :
a) BE1800E - 180 ton - Electrical Excavator b) BH150E - 150 ton - Electric Dump Truck
Metro & Rail :
c) Design and development of Metro Cars for Jaipur City
2. BENEFITS DERIVED AS A RESULT OF ABOVE R&D:
Major R&D initiatives have enlarged the product range and also provide latest
technology for the existing products that enables Company to retain the existing
customers, increase the market share and enter new markets. These new initiatives have
enhanced the skill sets, knowledge, expertise and induced confidence in taking up new
challenges that are arising from time to time.
(a) 180 ton Electrical Excavator, BE1800E :
BEML BE1800E electrical excavator is packed with leading-edge technologies and offers a
host of advantages including superior controllability, mobility, durability,
maintainability and operator`s comfort apart from low operating cost. The electrical
excavator is cost-efficient and emission-free alternative to the engine-driven excavator.
This electrical excavator is offered with proven systems/assemblies viz., hydraulic
system, undercarriage and front work attachment to enhance operational efficiency,
serviceability and availability. The equipment is tested thoroughly and fine-tuned for
optimized performance and ready for customer trails.
(b) 150 ton Electric Dump Truck, BH150E :
BH150E is a 150 ton class electric dump truck on par with international standards to
cater domestic and international customers. It is equipped with Electronic engine along
with reliable Electrical Drive System. The equipment is successfully designed, developed
and tested thoroughly and fine-tuned for optimized performance. With the above
achievement, BEML has become the 6 OE Electric Dump Truck manufacturer in the World.
(c) Design and Development of Jaipur Metro cars:
The R&D, Bangalore Complex have successfully designed and developed the Metro Cars
for Jaipur Metro city against the order from DMRC for 40 Metro cars. For the first time in
the country, BEML has designed and developed the metro trains without any collaboration
with a foreign firm.
The Jaipur Metro Cars are state-of-the-art stainless steel crashworthy cars fully
air-conditioned with aesthetic GRP interiors, automatic doors providing maximum comfort
and safety to the passengers. The cars are driven by state-of-the-art IGBT based, 3 phase
The Bogie to negotiate 120m curves was designed to suit the track parameters and the d
y n a m i c r e q u i r e m e n t s o f t e c h n i c a l specification. The static and
fatigue tests are carried out as per UIC standards.
3. FUTURE PLAN OF ACTION :
One of the key objectives of R&D is product diversification. Keeping in mind the
future trends in technology in line with changing business scenario, R&D has in place,
plan of action to take up a number of projects with enhanced allocation of resources. To
achieve this, R&D infrastructure and resources are being continuously
strengthened/upgraded as needed, to handle the latest technologies effectively.
BEML R&D, has planned to develop a series of products / aggregates covering all the
three business segments i.e., Mining & Construction, Rail & Metro and Defence in
the coming years.
4. EXPENDITURE ON R&D FOR 201213 :
Company has spent Rs 94.36 crores on R&D during 2012-13 which is about 2.87% of the
turnover as shown below:
|As % of Turnover
The Company committed to spend 1.75% of the turnover for the year 2011-12 towards
R&D during FY 2013-14 for technology up-gradation and new product development as per
5 . TECHNOLOGY ABSORPTION , ADAPTATION AND INNOVATION:
Efforts made and benefits derived in brief towards technology absorption, adaptation
and innovation are :
Acquisition and Absorption of new technologies
Faster and newer introduction of competitive product
Customer satisfaction and Business growth
Indigenization and standardization
Future Plan of Action:
Infrastructure established for indigenization of components for Metro cars and some of
the Defence products. Scanning and identification of technology / partners for mining and
construction products including higher capacity Dump Trucks, Dozers and Loaders with
state-of-the-art features in line with major global competitors.