BHEL Annual Report 2022-23

ANNUAL REPORT
2022-23
ENGINEERING
INDIA’S
SUSTAINABLE GROWTH
OFFERINGS
• Power- thermal, hydro, gas,
nuclear, and solar PV
• Transportation
• Transmission
• Defence & Aerospace
• Oil & Gas
• Energy Storage
CREDENTIALS
• Making in India since 1964
• India's largest engineering &
manufacturing enterprise of its kind
• One of the largest employer in the
Indian Capital Goods industry
• 197 GW power generating capacity
installed in India and abroad till date
• BHEL’s share in country's total
installed thermal generation
capacity - 55%
• Pan India presence: 16
manufacturing units; 8 service
centres
• Human capital base: 29,000+ strong;
8,300+ engineers
Table of
Contents
4 ANNUAL REVIEW
4 Letter to Shareholders 18 CORPORATE PROFILE
8 Leadership at BHEL 18 About BHEL
14 Year at a Glance 22 Pan India Presence
24 World of BHEL
26 Recognition of Excellence
30 BOARD'S REPORT
39 Management Discussion & Analysis
44 Profile and Performance of Business
Segments
Comprehensive Analysis of Financial
67
Performance
87 Corporate Governance
117 Sustainability & CSR
Business Responsibility &
127
Sustainability Report
R&D and Technological
160
Achievements
189 FINANCIAL STATEMENTS
190 Standalone Financial Statements
263 Consolidated Financial Statements
345 ADDITIONAL INFORMATION

346 Financial Performance Trend
349 Product Profile
358 Glossary
362 NOTICE
FEATURES
15 Revolutionizing Rail Experience
29 Capacity Building for the Nation
53 Achieving sustainability with Air Cooled Condenser
63 Aatmanirbharta Through Indigenous Technology of Coal Gasification
167 Greening Grid:Establishing synergy between Renewable and Coal-based Power
381 Nuclear Power Electricity: Building Reliable & Sustainable base-load Solution
Letter to Shareholders
Dear Shareholders,
It gives me pleasure to share the 59th annual report

of your company, for the year 2022-23.
Overall business scenario in India has been robust
with the country being one of the world's fastest-
growing major economies, achieving a remarkable
growth rate of 7.2% in FY 2022-23. The industrial
production also witnessed a notable increase
of 5.1% compared to the previous financial year.
While the slowdown in the global economy and
the geopolitical disturbances have had some
impact on businesses, the continued expansion
by domestic industries coupled with substantial
investment in the infrastructure sector presents
significant growth opportunities for your company.
The company has taken a number of initiatives
in the areas of business diversification, project
execution, technology development, quality,
manpower development, etc., in recent years,
which, I am happy to say, have started showing
results.
While financial parameters are the ultimate
yardstick of an organisation’s performance, it is
important to remember that the physicals are
the actual drivers for the financials. Further, it is
essential for any organisation, especially a large
one, to build for the future, by putting in place
suitable enablers for long term sustainable growth.
To this end, one of the most important changes
that your company has seen in recent times is
the change in operations ideology from being
“Revenue Centric” to “Project Centric”. The
company has taken up focussed efforts in the area
of project execution, including implementation of
an Integrated Project Management System (IPMS),
sequential despatches, advance engineering
planning & action, enhanced delegation to project
directors, site data digitization, etc., which have
started paying off.
At the macro level, this can be seen from the fact
that the company has achieved a doubling of
erection tonnage at project sites over a period of
three years (achieved 5.41 lakh MT in FY 2022-23)
Dr. Nalin Shinghal
despite a declining order book and ‘NIL’ thermal
Chairman & Managing Director
ordering over three years between Aug’19 to
Sep’22. Further, the increase in liquidation against
4 BHARAT HEAVY ELECTRICALS LIMITED

current year billing from 59% in FY 2018-19 to 86% in FY last four years, reasserting its market leadership position
2022-23 is proof of the quality of the output & billing. At a in the segment.
micro level, recent successes in two major projects Maitree
• The company recorded over 25% growth in the Spares
and North Karanpura are specific cases demonstrating the
Annual Review
& Services Business.
outcome of these efforts. The Unit 1 of Maitree Thermal
power project in Bangladesh was synchronised in August • The total outstanding order book as on 31st March
2022 (in an overall period of 64 months, despite two waves 2023 stands at I91,336 Crore, net of taxes (PY I90,084
of COVID and mass airlift of manpower from project site Crore). With the receipt of the prestigious order for 80
in between, as well as numerous border and visa related nos. “Vande Bharat” trainsets in April 2023, the total
challenges). More recently, the synchronisation of Unit 2 outstanding order book has crossed I1 Lakh Crore
of Maitree project was achieved on 28th June, ahead of the (excluding taxes), which is the highest in last 4 years.
commitment given at a high level G2G meeting, which was
In recent years, the company has twice won the ICAI Award
accepted to be a very tough target, even at the time it was
Corporate Profile
for ‘Excellence in Financial Reporting’ in the ‘Infrastructure
being given. Nearer home, Unit 1 of North Karanpura 3x660
and Construction Sector’ category, reflecting the quality of
thermal power plant was synchronised in Oct’22 and Unit 2
accounting/ reporting practices.
is moving towards synchronisation in Oct’23. This plant is
the first utility scale power plant with Air Cooled Condensers
Going forward
for reducing water consumption and will result in saving of
30,500 million litres of water annually when all the three Various initiatives taken at the national level, in the areas of
units are functioning, (this saving equals the annual need of infrastructure development and technology self-reliance, in
around 1.5 million people). This ACC was commissioned by tune with the growing aspirations of 1.4 billion people, create
BHEL engineers despite the absence of OEM experts due to a range of opportunities in the capital goods as well as energy
Board's Report
COVID related issues. sectors for your company. The AatmaNirbhar Bharat initiative
launched by our Hon’ble Prime Minster is one such initiative
Key performance highlights for FY 2022-23 opening up multiple opportunities and your company has
been working relentlessly to capitalise on these emerging
Coming to our performance for the year gone by :
opportunities.
• The company achieved revenue from operations of
In the conventional (power) sector, we are seeing a consensus
I23,365 Crore as against I21,211 Crore during the
emerging that, for economic development and for meeting
Financial Statements
previous year, an increase of 10% and made a profit after
the aspirations of our people as well as from an energy
tax (PAT) of I448 Crore against a PAT of I410 Crore in
security perspective, thermal power cannot be phased out.
the previous year.
This has brought around a revival in the thermal power sector
• Despite increase in total receivables by nearly 9% – albeit for short to medium term—this is a breather which
during FY 2022-23—primarily on account of execution will further enable your company to diversify into new &
of projects with adverse payment terms, there is a futuristic businesses.
reduction in terms of number of days of Revenue from
Expanding business scope in the thermal related areas, the
Operations from 571 days last year to 567 days in current
company has made substantial progress in successfully
year and the Trade Receivables in terms of number of
developing in-house solution for flexible operation of coal-
Additional Information
days of Revenue from Operations, have reduced to 102
fired power plants (an imperative for integrating RE in the
days as against 107 days during FY 2021-22
grid). The company has demonstrated the target performance
• The company secured orders worth I23,548 Crore, parameters in the company’s first order and further four
excluding taxes, which is the highest in the last five years. orders have already been received. Issue of guidelines, for
The reporting of order book has been done excluding implementing flexiblisation capabilities in existing thermal sets
taxes for better understanding of all stakeholders, and is by CEA, is expected to generate further business in this area.
in line with the reporting of revenue numbers. Industry Spares and Services business is also picking up with focussed
sector segment order booking is at I9,537 Crore – efforts, including long term agreements (for supply as well
highest in last 13 years with highest-ever orders in the as services) with customers, advance procurement action/
Notice
defence sector, which also includes the order for 20 stocking to reduce delivery times, and efforts to improve
upgraded SRGMs (main gun on Indian warships) for service deliveries. Efforts are on to focus on Nuclear business
which BHEL is the sole supplier in the country. with MoU being signed with NPCIL and developmental
efforts initiated in the area of Small Modular Reactors. The
• The company won the only thermal EPC order—2x660
dispatch of BHEL’s 44th nuclear steam generator for GHAVP
MW, NTPC Talcher Thermal Power Plant, awarded in the
(Gorakhpur Haryana Anu Vidyut Pariyojana) demonstrates
ANNUAL REPORT 2022-23 5

our capability in this domain. The company continues to The company has further signed technology agreements
maintain its lead position in Hydro power with the capability with M/s General Electric Technology GmbH Switzerland
to design, engineer and manufacture custom-made hydro for enhanced rights of existing /uprated and new gas
turbines & generators of various sizes up to 400 MW and turbines models, M/s Sumitomo SHI-FW for subcritical and
offer customized R&M solutions for the vast fleet of ageing supercritical Circulating Fluidised Bed Combustion (CFBC)
hydro turbo-generators. Boilers capable of firing a wide range of fuels, and M/s ABB
for underslung propulsion equipment for rail segment which
As far as diversification is concerned, the company is targeting
will provide the twin benefit of garnering orders in diversified
at least 50% of its business to be from non-coal businesses.
businesses from domestic and international markets as
The company has achieved some notable successes in this
well as help make BHEL self-sufficient in state-of-the-art
area with industry segment order book going up to 40% of
technologies, in times to come.
total order booking in the last year with highest-ever orders
in defence sector including orders for upgraded SRGM, Heat The company has also made notable progress in indigenisation
Exchangers for fighter aircraft, maiden order for supply of Li- and reduction on import reliance, both in its own business
ion batteries for AMCA (making BHEL the sole Indian supplier areas as well as for other CPSEs. For its own business, BHEL
of Li-ion batteries for next generation aircraft), etc. Further, has developed in-house a number of equipment including
BHEL continues to expand its role as a reliable partner for for FGDs, etc., and has further been working with industry for
design, engineering and manufacturing of critical equipment supporting development by its vendors/ associates. Recent
for the strategic sectors with range of equipment including successes include development of Sucker Rod Pumps – a
heat exchangers, control systems, turbines, motors, major requirement of the oil industry which was hitherto
generators, etc. largely imported from China.
One of BHEL's largest orders—for supply and 35 years' However, challenges still remain for the company. Rising
maintenance of 80 Vande Bharat trainsets—received in Apr’23 material costs, though moderated by multiple cost
in consortium with M/s TRSL, is a landmark success which will optimisation efforts, continue to hurt profitability. This,
open the way for future rail business, where huge expansion combined with the fact that some of the orders currently
and modernisation plans are being rolled out – including in under execution have been taken at very competitive rates,
areas like semi-high speed trainsets, locomotives, signalling is likely to continue to hurt the bottom line in the near
etc. future. The company is continuing with strict cost control
measures to deal with this situation. Going forward, new
Yet another successful business initiative has been on the coal
orders where cost hikes are factored in coupled with the
gasification front. The need for the country to utilise its vast
company’s efforts on improving project management and
coal reserves (in absence of any substantial gas/ oil reserves)
engagement of PMC for specific sites would further help
has been recognised at various levels. At the same time, it
improve profitability. The liquidity position of the company
is also accepted that, from a climate change perspective,
will continue to be constrained on account of adverse
the country will have to adopt clean coal technologies
payment terms in ongoing orders and is expected to improve
in a major way. BHEL has leveraged on its indigenously
as these orders are substantially completed in the next two
developed coal gasification technology—the world’s first
years. Delivery against these new orders obtained in recent
proven technology for gasification of high ash Indian Coals—
years with continued focus on timely delivery, would further
and completed design & engineering of the gasifier for 2,000
aid recovery.
TPD commercial scale plant. Further process of setting up a
JV with Coal India Ltd, for setting up a Coal to Ammonium
Quality First Initiative
Nitrate plant is in advanced stages. This will open up a major
business area for BHEL under the National Coal Gasification Another major initiative taken by your company is the
mission announced by our Hon’ble Prime Minister. ‘Quality First’ initiative, launched in mission mode
throughout the organization, for making quality a hallmark
In line with the ‘National Hydrogen Mission’, your company is
of the company’s products & services being offered to
geared up and exploring various areas in the green hydrogen
the customers. Sustained efforts on this front resulted in
value chain and is setting up a Centre of Excellence, at
BHEL being awarded the CII-EXIM Bank's first-ever 'Special
Varanasi. These efforts will pave the way for future scalable
Jury Commendation for Adoption and Nurturance of
businesses in this area.
Business Excellence', reflecting your company’s dedication
These diverse initiatives collectively set the ground for BHEL's to fostering and embracing excellence in all aspects of
long-term growth prospects in the non-coal segment. operations. Additionally, BHEL units HPBP Trichy, HEEP
They also demonstrate your company’s commitment to Haridwar, HEP Bhopal, and HPEP Hyderabad have received
sustainability, reduction of carbon footprint, and contribution the prestigious “Platinum” recognition while PEM Noida, EDN
towards global efforts in mitigating climate change.

Bengaluru, BAP Ranipet and PSNR Noida bagged “Gold Plus” BHEL's own sites but also contribute to various sectors in
recognition in "CII EXIM Bank award for Business Excellence the country and the neighbourhood as well, where there is
2022". All 8 Quality Circle teams which participated at the currently a shortage of skilled welders. The endeavour has
47th International Convention on Quality Control Circles in also been appreciated by Hon‘ble Minister of Heavy Industries
Annual Review
Jakarta, won the Gold awards (highest category of award), and the Hon‘ble Prime Minister of India.
vindicating BHEL's position as the pioneer of the quality circle
movement in India. Acknowledgement
The success of your company is only possible with the
Developing a committed workforce & leadership pipeline
goodwill, constant support and encouragement of our
Your company has been recognized as a model employer stakeholders. I express my sincere gratitude to our valued
for decades and believes that a dedicated and committed customers as well as business partners for their persistent
workforce is the key to success of any organization. A faith in our capabilities, to employees for their tireless efforts,
Corporate Profile
number of initiatives have been taken in this direction passion and perseverance, members of Board for their
including engagement of a leading consultancy organization guidance, and you, our esteemed shareholders, for your
for designing & implementing a roadmap for HR excellence. support and trust in the company. I would also like to thank
For long term succession planning, leadership development various Ministries of Government of India, particularly the
models through competency assessment have been created Ministry of Heavy Industries for their continuous support and
and curated individual development plans, etc., are being valuable guidance throughout.
implemented. A number of efforts are also being made for
Your company has undertaken a journey to establish itself
enhancing employee engagement through communication
as a future-ready global engineering and manufacturing
initiatives, unit reach-out programs, etc. Additionally, in view
enterprise, and I am confident that with your support and
Board's Report
of the changing business scenario, special emphasis is being
cooperation, we will complete the same with flying colours.
given on continuous training, for making our workforce
agile through unlearning, learning and relearning initiatives With best wishes,
focused on new upcoming technologies.
Green BHEL/Harit BHEL

Actions to mitigate climate change are of paramount
(Dr. Nalin Shinghal)
importance across the globe for a sustainable future, and
our country has adopted the ‘Panchamrit’ goals including
New Delhi
commitment to become Net Zero by 2070. In line with our
July 28, 2023
ethos as a sustainable company, we have undertaken a major
initiative for “Making BHEL a Green Company” with the target
of achieving Net Zero by the year 2047. In addition to making
the company a model “Green Company” for the public sector,
it is expected to support business performance by reducing
costs and improve availability of borrowings & insurances,
etc., in the long run. It would further help create a culture
of innovation within the company to design, engineer and
manufacture environment friendly products.
Skill Development Initiatives

Supporting the country’s commitment towards skill
development as well as leveraging BHEL’s capabilities and
infrastructure, your company has established a Common
Engineering Facility Centre (CEFC) at Welding Research
Institute (WRI), Trichy (the leading welding research institution
Notice
in the country) and extension centres at Varanasi, Haridwar,

Bhopal, Jhansi and Ranipet with support from Ministry of
Heavy Industries (MHI), to train welders. The CEFC has already
trained 2,000+ welders in the first year of its inception. This
initiative will not just ensure availability of skilled welders for

Leadership at BHEL
Board of Directors as on 20th July 2023
FUNCTIONAL DIRECTORS
Dr. Nalin Shinghal Ms. Renuka Gera Shri Upinder Singh Matharu
Chairman & Managing Director Director Director (Power)
(Industrial Systems & Products)
Shri Jai Prakash Srivastava Shri Krishna Kumar Thakur

Director Director (Human Resources)
(Engineering, Research & Development)
Addl. Charge (Finance)

GOVERNMENT DIRECTORS/ PART-TIME OFFICIAL DIRECTORS
Annual Review
Corporate Profile
Board's Report
Ms. Arti Bhatnagar Shri Vijay Mittal
Additional Secretary & Financial Adviser, Joint Secretary
Ministry of Commerce & Industry Ministry of Heavy Industry
INDEPENDENT DIRECTORS
Notice
Dr. K Sivaprasad Dr. Lekhasri Shri Ramesh Patlya

Independent Director Samantsinghar Mawaskar
Independent Director Independent Director

Leadership at BHEL MANAGEMENT TEAM
Management Team as on 20th July 2023
Dr. Nalin Shinghal Renuka Gera Upinder Singh Jai Prakash Srivastava Krishna Kumar
Chairman & Managing Director Matharu Director (Engineering, R&D), Thakur
Director (Industrial Systems & Products)
Director (Power) Addl. Charge (Finance) Director (HR)
Shakil Kumar Anil Joshi G Murali Pankaj Gupta Pravin Chandra Jha S B Naithani
Manocha ED (Industry Sector), ED (PS-SR), Chennai ED (SBD), Bengaluru ED (HEEP & CFFP) ED (PEM) Noida & ISG,
New Delhi Haridwar; Addl charge- Bengaluru
ED (OSD)
SSBG, Noida
Sushil Kumar Baveja T S Varadarajan M Isadore Vinay Nigam T S Murali Rajeev Singh
ED (COC & CDT), ED (HPEP), Hyderabad ED (HR), New Delhi ED (HEP) Bhopal ; Addl. ED (CSM & CC) New ED (BAP), Ranipet
New Delhi charge-TP, Jhansi Delhi; Secretary - MC
Praveen Kishore K S Murthy Bani Varma P Sudhir Babu Pushpendra Kumar K Ravishankar
ED (PS-ER), Kolkata ED (COM), New Delhi ED (EDN), Bengaluru & GM I/c (PE&SD), Saxena GM I/c (Corporate R&D),
TBSG, New Delhi Hyderabad GM I/c (PS-HQ) , New Delhi Hyderabad

MANAGEMENT TEAM
Annual Review
Corporate Profile
Asim Sur S Jithender Reddy Arumoy Mukherjee Rajesh Kohli S M Ramanathan Navin Saxena
GM I/c (PSTG-II), GM I/c (HPVP), Vizag GM I/c (PS-WR), Nagpur GM I/c (CTM), New Delhi GM I/c (HPBP), Tiruchy GM I/c (PS-NR), Noida
New Delhi
Board's Report
R K Chokhani Rajeev Kumar Amit Kerketta Jitendra Das Pankaj Rastogi Vinay Kumar Bassi
Gupta GM & Head (Capex and
GM I/c (NBG) Noida; GM & Head (IPM), GM & Head (HBG), GM & Head (ROD),
SS&P) New Delhi, Addl. New Delhi Noida New Delhi
GM I/c (IO), charge- FSIP, Jagdishpur &
New Delhi CFP, Rudrapur
Rajnish Goyal Rahul Bansal S Prabhakar Rakesh Singh R P S Sisodia Sumeet Salhotra
GM & Head (ESSG & GM & Head (CQ&BE), GM & Head (Coal to GM & Head (TBG), Noida GM & Head (PSTG-I), GM & Head
NBA), New Delhi New Delhi Chemical Group), New Delhi (Corp. Finance),
New Delhi New Delhi
Notice
Dhiman R Veerabahu Rajeev Kalra

Chattopadhyay GM (Corporate Internal Company Secretary
GM (PS-TS), Noida Audit), New Delhi

Annual Review Corporate Profile Board's Report Financial Statements Additional Information Notice
13
ANNUAL REPORT 2022-23
Strategic partnerships
for commercialisation
of indigenous coal Focus on developing
gasification technology - non-coal business-
highest ever share of
Signed MoUs with Coal
Industry Sector (~40%)
India Limited (CIL) and
in the yearly order
NLC India Limited (NLCIL)
booking.
for commercial size coal
gasification projects.
Highest orders in
13 yrs in the Industry
sector ~ `9,500 Crore* -
Highest ever orders in the
defence sector
~ `3,600 Crore*.
YEAR AT A
BHEL entered into a
GLANCE Highest ever orders
in the Spares &
Services Business
technology tie-up with
Sumitomo SHI FW Energia 2022-23 ~ `3,800 Crore*
Oy, Finland for supercritical

and subcritical Circulating
Fluidised Bed Combustion
(CFBC) Boilers
`691 Crore invested in Successfully

R&D and innovation; demonstrated India’s
503 patents and first flexible-operations
copyrights filed; 5,443 at 1x600 MW Adani
Total Intellectual Raigarh thermal power
Capital plant- establishing harmony
Delivery ahead of schedule – between renewable and
supplies of 75 nos. of 6000 HP conventional thermal power.
WAG-9H Electric Locomotives to
Indian Railways
*excluding taxes

REVOLUTIONIZING BHEL's contribution to
RAIL EXPERIENCE India's Modernization Journey
Indian Railways, in its pursuit of expansion This path breaking order includes engineering,
& modernization, has found a valuable ally manufacturing, testing, commissioning, and supply
in BHEL. Futher to winning the order of four & maintenance of 80 energy-efficient Vande Bharat
propulsion systems for Vande Bharat Trainsets, trainsets. The entire fleet of these trainsets will be
BHEL in consortium with Titagarh Rail Systems maintained for 35 years, ensuring optimal reliability
Ltd. (TRSL), has successfully secured another and availability. Passengers can look forward to
significant order from Indian Railways for advanced features that prioritize comfort and
80 Vande Bharat Sleeper Trainsets – a major safety, while reducing travel time between cities.
realisation in BHEL's diversification drive. These Experience the future of rail transportation with
sleeper version of Vande Bharat Trainsets can be BHEL's cutting-edge technology, 'Made in India'.
deployed for longer distances, and are capable Embarking on a journey towards a modern,
of operating at a high speed of 160 kmph. efficient, and self-reliant Indian Railways.
15
YEAR AT A GLANCE
(Figures are in ` Crore unless otherwise stated)
REVENUE OTHER OPERATIONAL INCOME MANPOWER (NOS) AND

REVENUE PER EMPLOYEE ( `/Lakh)
83
75
66
61
51
29423
20491
30758
29536
16296
20153
33752
22136
35471
32131
1000
1058
1229
1013
969
22-23
22-23
22-23
18-19
19-20
20-21
21-22
18-19
19-20
20-21
21-22
18-19
19-20
20-21
21-22
TOTAL (Nos) REVENUE PER EMPLOYEE
(`/LAKH)
OTHER EXPENSES TO REVENUE % EBITDA INVENTORY POSITION (`CRORE)

AND NO. OF DAYS
159 161
9.1%
7.7%
9.6% 6.7% 9% 119
6.6% 111
5% 5% 97
2%
2810
1106
1231
348
16%
1480
2263
1466
1970
1355
2765
8905
6560
6756
7797
7191
22-23
18-19
19-20
20-21
21-22
22-23
18-19
19-20
20-21
21-22
22-23
18-19
19-20
20-21
21-22
OTHER EXPENSES % OF REVENUE EBITDA EBITDA AS % OF TOTAL INCOME INVENTORY INVENTORY IN NO OF DAYS
(`CRORE)

YEAR AT A GLANCE
Annual Review
(Figures are in ` Crore unless otherwise stated)
CURRENT RATIO % LIQUIDATION OUT OF TOTAL POTENTIAL LIQUIDATION OUT OF CURRENT

(Opening net Trade receivable + Current year Net billing) YEAR NET BILLING %
Project centric approach
Corporate Profile
and improved billing
mechanism has led to
better cash collection.
1.67
1.45
1.39
1.30
1.29
74% 75% 75% 86 86

82
67%
62% 73
59
Board's Report
19-20
18-19
21-22
22-23
20-21
22-23
18-19
19-20
20-21
21-22
19-20
18-19
21-22
22-23
20-21
TRADE RECEIVABLES (`CRORE) MARKET CAPITALISATION
AND NO. OF DAYS TO NET WORTH
0.90
0.83
190 198
152
0.64 0.64
107 102
0.25
26484
24420
26081
27262
31432
26971
29181
16975
17184
15796
7243
11641
6544
6229
7213
19-20
22-23
20-21
21-22
18-19
19-20
18-19
21-22
22-23
20-21
Notice
TRADE RECEIVABLE TRADE RECEIVABLE MARKET NET WORTH MARKET CAPITALISATION

(`CRORE) (IN NO. OF DAYS) CAPITALISATION TO NET WORTH

Making in India
since
1964
About BHEL
and
supplying products
and services globally
BHEL is India’s largest engineering and manufacturing enterprise, operating in
the energy, industry and infrastructure sector. Company was established in the
year 1964 and since then it has been “Making in India” offering comprehensive
products, systems, and services in various areas including power generation
(thermal, hydro, gas, nuclear, and solar PV), transmission, transportation, One of India’s largest
defense, aerospace, oil and gas, and emerging sectors like battery energy employers in the
storage systems and electric vehicle chargers. engineering space
BHEL has been instrumental in developing the country's power generation
capacity, contributing to core industrial and strategic sectors since the time 29,000+ highly
of its humble beginning. The company's commitment toward its customer is skilled employees incl.
evident through wide range of product portfolio, development and absorption
of new technologies, consistent investment of more than 2.5% of its revenue 8,300 engineers
on R&D and innovation, establishment of world-class manufacturing
facilities and offering sustainable business solutions. Apart from serving
customers, BHEL has been supporting communities through programs like Ranks one of the
skill development, promoting health, hygiene, education, cleanliness and largest in the capital
environmental protection, thus contributing to the society as a whole. goods manufacturing
space in India

16 manufacturing Consistent R&D
spend of over
facilities spread across
the country producing 2.5% of the
equipment conforming to annual revenue One of the few companies
international standards in the world having the
capability to design and
Annual Review
4 regional offices, manufacture equipment
for entire range of power
8 service centres and
15 regional marketing
80+ technology plants – nuclear, hydro,
collaborations
centres undertaken with thermal & gas, with proven
several global OEMs capabilities to execute large
over the years size projects
140+
Corporate Profile
ongoing
projects in different
parts of India & abroad
Shaping innovation
capabilities & State-of-the-art
technology- with facilities specializing in
References in
dedicated engineering, manufacturing,
88 countries R&D centre in testing, aftermarket services
in all six inhabited for equipment in the core
Board's Report
Hyderabad, 14 Centres
continents of Excellence & 5 infrastructure sectors - Power,
research centres Railways, Industrial Systems
& Products, Defence &
Aerospace
Notice

Power Sector
BHEL is one of the few companies in the world having the • Gas turbines and generators upto 299 MW unit size
capability to manufacture the equipment for entire range of
power plants - thermal, gas, hydro and nuclear, with proven • Hydro turbines and generators up to 400 MW unit size
capabilities to execute large size projects. BHEL’s offering • 220/235/500/540/700 MWe nuclear turbine generator
include: sets
• Steam turbines, generators, boilers and matching • Plant performance improvement through renovation,
auxiliaries for fossil-fuel applications upto 1000 MW unit modernization, flexibilization, uprating, residual life
size assessment, health diagnostics and life extension of
• Emission control equipment including Flue Gas plants
Desulphurisation systems for SOx emission control,
high efficiency Electrostatic Precipitators for particulate
emission control, and Boiler modification and Selective
Catalytic Reduction systems for NOx emission control

Industry Sector
BHEL’s major offerings for industry and infrastructure sectors • Transmission: EHV substations (AIS and GIS types)
include: ranging upto 765 kV, UHV substations and HVDC
• Transportation: Semi high speed (Vande Bharat) trainsets, converter stations up to ±800 kV, power transformers,
electric locomotives upto 9000 HP, diesel electric locos shunt reactors, vacuum switchgear, gas insulated
upto 3000 HP, EMU coaches, IGBT based propulsion switchgears, Flexible AC Transmission system devices,
Annual Review
equipment (traction converter/auxiliary converter/ composite insulators for upto 765 kV application etc.
vehicle control unit), traction transformers for electric • Industrial Products: Oil rigs, wellheads & X-mas tree
Locos & ACEMUs/ MEMUs valves, mechanical packages, fabricated equipment &
• Defence & Aerospace: Strategic equipment for boiler feed pumps, compressors & AC machines
Indian defence forces including Super Rapid Gun
Mount (SRGM), upgraded SRGM, Integrated Platform
Management System for naval ships, compact heat
exchangers, space grade Lithium ion cells, space grade
Corporate Profile
solar panels and space grade batteries etc, hot forming
of spacecraft propellant tank, forming of Titanium Shell/
Domes, welding & machining of Titanium sheet and
tubes, rotary main motor generators
• Renewables: EPC solutions from concept to
commissioning for grid connected, standalone solar PV
applications including floating solar power plants and
Mono-PERC Solar PV Modules up to 400 Wp
Board's Report
• Energy Storage Solutions & new business areas: EV
Chargers and associated electrical system, EPC solutions
for Electric vehicle charging station with upstream
electrical system;
• Captive Power & Process Plant - Standalone STGs, BTG
package, Refinery CPP on EPC basis, AFBC and CFBC
boilers, UB package, Downstream Oil & Gas packages
on EPC basis
BHEL's success over the years is driven by its skilled and installed & commissioned 1.2+ GW solar portfolio spread
motivated workforce of over 29,000 employees coupled across the country.
with physical assets spread across India that include a
BHEL has a widespread footprint in all the inhabited continents
network of 16 manufacturing facilities, 2 repair units, 4
of the world with references in 88 countries including the
regional offices, 8 service centres, 3 active joint ventures,
neighbouring countries of Bangladesh, Afghanistan, Bhutan,
15 regional marketing centres, 1 overseas office and current
and Nepal, Indonesia, Oman, Iraq, Sudan, Afghanistan, United
project execution at more than 140 project sites across India
States and New Zealand. Around 12 GW power generating
and abroad. The manufacturing facilities churn out a wide
capacity has been installed in overseas markets and additional
range of high quality & reliable products adhering to national
5 GW is under execution, including 2x660 MW Maitree Super
and international standards.
Thermal Power Project in Bangladesh and 4x225 MW Arun-3
BHEL has a strong presence in various sectors of the Hydroelectric Project in Nepal.
Indian capital goods industry, including Power Generating
In certain strategic sectors, BHEL holds a crucial position as
equipment for the utilities. The worldwide installed base of
the sole Indian supplier of technology-intensive products
power generating equipment supplied by BHEL is 197 GW,
and systems. It is the only manufacturer of nuclear steam
making it the undisputed leader amongst Indian power
Notice
turbines in the country and has been involved in all three

plant equipment manufacturers. Besides, the company has
stages of India's Nuclear Power program. Furthermore, BHEL
supplied 800+ locomotives and other traction equipment
has been a major supplier of critical equipment and services
for locomotives & EMUs; commissioned 240+ electric
in the defense and aerospace sector for over three decades
substations and 6 major HVDC projects in the country,
and is a trusted supplier of naval guns to the Indian Navy for
becoming the largest manufacturer and supplier of power
their warships.
transformers and electrical AC machines in the country, and

PAN INDIA
PRESENCE
Project Sites in
Service Centres Repair Units
India & abroad
16 08 15 140+ 04 02
Manufacturing Regional Marketing Regional Oﬃces
Units Centres
Manufacturing Plants/ Unit Locations
1. Electronics Division (EDN)

Bengaluru 2. Electronics Systems Division (ESD)
3. Solar Business Division (SBD)
Bhopal 4. Heavy Electrical Plant (HEP)
Goindwal 5. Industrial Valves Plant (IVP)
6. Heavy Electrical Equipment Plant (HEEP)
Haridwar
7. Central Foundry Forge Plant (CFFP)
Hyderabad 8. Heavy Power Equipment Plant (HPEP)
BHEL Manufacturing Units
Jagdishpur 9. Fabrication Stamping & Insulator Plant (FSIP)
Jhansi 10. Transformer Plant (TP)
Rudrapur 11. Component Fabrication Plant (CFP)
Ranipet 12. Boiler Auxliaries Plant (BAP)
13. High Pressure Boiler Plant (HPBP)
Tiruchirappalli
14. Seamless Steel Tube Plant (SSTP)
Thirumayam 15. Power Plant Piping Unit (PPPU)
Visakhapatnam 16. Heavy Plates & Vessels Plant (HPVP)
Mumbai 1. Electrical Machine Repair Plant (EMRP)
BHEL Repair Units
Varanasi 2. Heavy Equipment Repair Plant (HERP)

23
Vision Mission
A global engineering The Providing sustainable
enterprise providing
solutions for a better World business solutions in the
fields of Energy, Industry
tomorrow
of BHEL & Infrastructure
A National Institution
• One of the largest engineering
& manufacturing companies
in India serving core sectors of
the economy
• Pan India presence with 16
Manufacturing Units and
140+ project sites (including
overseas)
Did you know?

• BHEL is the only company associated with all three stages of Indian Nuclear
Power Programme
• BHEL dispatched its 44th Nuclear Steam Generator for Rawatbhata Nuclear
Power Plant from its Trichy manufacturing unit
• BHEL has been the pioneer in the Coal Gasification Technology in the country
since 1990
• BHEL has designed & developed 2 kW Air Cycle Machine (ACM) based Liquid
Cooling System (LCS) for Light Combat Aircraft – Tejas Mk1
• BHEL has successfully indigenized Ceramic Pouring Tube for the manufacturing
process of cast steel wheels at Rail Wheel Factory, Yelahanka and Bela
• BHEL will be sole supplier of Li-ion batteries for next generation aircraft
Energizing India
• 197 GW power generating
equipment installed (including
overseas)
• 18.8 GW Captive Power Plants
commissioned
• 1.2+ GW Solar portfolio
•
BHEL supplied 55% of the Thermal
Power generation capacity, 48%
of the Nuclear Power generation
capacity (secondary side) and 44%
24 of ELECTRICALS
BHARAT HEAVY the Hydro Power LIMITED
generation
capacity installed in the country
Unparalleled contribution in core sectors
• 7,30,000+ MVA Transmission Equipment supplied
• 33,500+ AC Machines supplied
• 800+ Locos supplied to Indian Railways
• 415+ Compressors supplied and 90 Oil drilling Rigs supplied
Annual Review
• 13500+ Well Heads & Christmas Tree valves supplied
• 40+ Super Rapid Gun Mount (main gun) supplied for Indian Navy
ships
Corporate Profile
Valuing people
Global Footprints
• Committed workforce, more than
• Footprints in 88 countries 29,000+ employees
• 12 GW Power generation capacity • 8,300+ Engineers
built outside India; 5 GW under
Board's Report
installation • Participative management culture
since 1973
Technology for a sustainable future
• Successfully executed India’s first flexible operation at M/s Adani REGL (1x600 MW)
unit for integration of renewable power to grid - developed in-house by BHEL
• Successfully established methanol firing system as an alternative to Light Diesel Oil
and Heavy Fuel Oil in Thermal Power Plants
• Commissioned the largest floating solar power plant of India with 100 MW capacity
at NTPC Ramagundam in Telangana
• Carbon footprint avoidance of nearly 26,964 MT of CO2-equivalent through in-
house ~35 MWp solar power installations
• Import substitution of oil extraction product Sucker Rod Pumping (SRP) through
in-house design & development
• 10 manufacturing units are now ‘Zero Liquid Discharge’ entities
Innovation
• R&D Expenditure consistently
more than 2.5% of Turnover,
5,400+ IP equity
Notice
Growing with society • Collaborative R&D with leading

• Committed to Principles of UN academic institutions & research
Global Compact organizations
• Signatory to Integrity Pact of • 5 Research Institutes; 14 Centres
Transparency International of Excellence
• 49,200 saplings planted across • In-house R&D Centres of 12
BHEL during FY 2022-23 to Manufacturing Units & Divisions
ANNUAL REPORT
enhance green cover
2022-23
recognized by DSIR 25
Recognition of Excellence
1. CMD, BHEL conferred with ICC 5. Ms. Renuka Gera, Director (IS&P),
PSE Excellence Award for ‘CEO BHEL, was conferred with the
of the Year’ for transformational prestigious ‘CIGRE Women in
leadership Energy Award’ at the CIGRE, Paris
Session in France.
6. Ms. Sireesha Baile of Corporate
R&D, Hyderabad received the
coveted ‘Young Engineer of the
Year Award 2022’ from Govt.
of Telangana and Institution of
Engineers (India), Telangana State
Centre for her achievements in
technological innovations.
7. ‘Governance Now PSU awards
2022’ in various categories –
Best PSU award in Research
& Innovation, HR Excellence,
2. CMD conferred with ‘Governance Increase in Geo-Strategic Reach,
Now CMD Leadership Award Digital Security and Use of
2022’ for putting in place Emerging Technologies: IoT/IIoT. 8. BHEL conferred with National
multidimensional transformational Intellectual Property Awards 2021
strategies. & 2022 in the category of ‘Top
Public Limited Company/Private
3. CMD, BHEL has been conferred
Limited Company for Patents
with Outstanding Contribution to
Filing, Grant & Commercialization’
National Development, IIT Delhi
in India in the Manufacturing
Alumni Award.
Sector’ by Office of Controller
4. 20 teams won Par Excellence General of Patents, Designs &
award (highest category), 13 teams Trade Marks under, DPIIT, Ministry
won Excellence award and 1 team of Commerce & Industry.
won Distinguished award during
9. BHEL recognised as one of the
36th National Convention on
Top 50 Innovative Companies in
Quality Concepts (NCQC) – 2022,
India and awarded ‘CII’s Industrial
organised by Quality Circle Forum
Innovation Award 2022’.
of India, Aurangabad Chapter.

Annual Review
Corporate Profile
10. BHEL received CII-Exim 12. BHEL was awarded for the 14. BHEL bagged 8 Gold Awards at
Bank’s first-ever Special Jury ‘Highest procurement in number the International Convention
Commendation for Adoption of orders on GeM in FY 2021-22’. on Quality Circles 2022 held
and Nurturance of Business at Jakarta Indonesia by IQMA
13. BHEL was conferred with
Excellence. The company’s (Indonesia Quality Management
the Best Performing CPSE in
Trichy, Haridwar, Bhopal and Association). More than 20
e-procurement award at the
Board's Report
Hyderabad units have received the Countries participated in the
National Workshop for Electronic
Platinum recognition while Project International event. The prestigious
Procurement under the aegis of
Engineering Management Group, awards were conferred on the
Ministry of Finance, Department of
Electronics Division - Bengaluru, teams for bringing new thinking,
Expenditure along-with National
Power Sector – Northern Region simplifying work, bringing quality
Informatics Center, Ministry
and Ranipet Division have and developing new tools &
of Electronics & Information
been awarded the ‘Gold Plus’ techniques in their field of work.
Technology.
recognition.
11. BHEL won CBIP Award 2022 for
Best Contribution in Solar Energy.
The Award was received by CMD,
BHEL, along with Ms. Renuka Gera,
Director (IS&P), BHEL from Shri R
K Singh, Hon’ble Union Minister
of Power and New & Renewable
Energy.
15. BHEL’s HPEP Hyderabad Unit
conferred with Best Organisation
Award for supporting Quality
Circle Movement in the Country
and contributing to its growth
by Quality Circle Forum of India
(QCFI), Hyderabad during Annual
Chapter convention on Quality
Notice
Circles (CCQC-2022).
16. BHEL received Renewable Energy
India Awards – 2022 in the
category of Leading EPC-Solar at
Renewable Energy India Expo.

21. BHEL received Golden Peacock 23. BHEL received ICC Social Impact
Award 2022 in the Power Awards 2023 in Healthcare for
Equipment Sector for its inclusive CSR Project – ‘Lifeline Express-
CSR program – ‘Motivating Hospital on train’ at Panki-Dham,
AgRarian communities of Kanpur.
Kandhamal for Economic
24. BHEL recognized as the
Transformation (MARKET)’ in the
‘Most Preferred Workplace
Kandhamal district of Odisha.
in Manufacturing 2022-
23’ by Team Marksmen for
maximising employee happiness
17. BHEL received ICC PSE Excellence and productivity along with
Award for ‘Contribution of organisational performance.
Women and Differently-abled’ in
the Maharatna CPSE category.
18. BHEL received the prestigious
North India Best Employer Brand
Award 2022 for demonstrating
exemplary HR practices and
effectively cultivating HR
competencies to enable the
organization to be future-ready by
World HRD Congress. 22. BHEL conferred with the Apex
India HR Excellence Platinum 25. BHEL conferred with a Memento
Award 2022 for innovative on World Hemophillia Day by
HR practices and Apex India Hemophillia Federation India for its
Occupational Health & Safety valuable support and making the
Gold Award 2022 for its sterling life of the persons with Hemophillia
track record in safety in Engineering better through CSR Project ‘Heal A
Sector. Soul-IV’.
26. BHEL honoured by Rail Analysis
India at the 4th Rail Analysis
Innovation & Excellence Summit
19. BHEL received Golden Peacock 2023 for exemplary achievement
Environment Management Award in ‘Sustainable and Energy Efficient
2022 under the category ‘Power Solutions for Rail sector’.
Equipment Sector’.
27. Mr. Bijaya Kumar Das completed
20. The prestigious award for Star the gruelling ‘IRONMAN’ long-
Performer for 2018-19 in the distance triathlon race, held in
product group: Project Exports - Astana, Kazakhstan. It is one of the
Large Enterprise’ at the 51st EEPC most difficult one-day sporting
India National Awards. events in the world.

CAPACITY
BUILDING
FOR THE NATION
Annual Review
BHEL has taken a significant step towards enhancing the
competitiveness of the Indian capital goods sector by
establishing the "Common Engineering Facility Centre"
(CEFC) at its Welding Research Institute (WRI) in Trichy.
This initiative is supported by a grant from the Ministry
of Heavy Industries (MHI) under the "Enhancement
Corporate Profile
of Competitiveness in Indian Capital Goods Sector
Scheme, Phase-II."
The CEFC, with a target capacity to skill 5,000 welders
annually, offers comprehensive training in various
welding technologies. These include Shielded Metal
Arc Welding (SMAW), Gas Metal Arc Welding (GMAW),
Gas Tungsten Arc Welding (GTAW), as well as advanced
Board's Report
welding technologies such as Robotic Welding, Laser
Welding, Friction Welding and Dissimilar Metal Welding.
The training programs not only cover theoretical aspects
but also provide hands-on skills to the participants.
Operating under the hub and spoke model, the CEFC
has WRI-Trichy as the hub and extension centers located
at Varanasi, Bhopal, Jhansi, Haridwar, and Ranipet as country to meet the requirements of both traditional and
the spokes. This model enables the CEFC to reach a modern manufacturing industries in India.
larger population across India, ensuring that skilling Currently, all the skilling centers of the CEFC are
opportunities are available nationwide. As a result, a operational, and in its first year of operation, they have
pool of trained welders is being created throughout the already successfully trained over 2,000 welders.
Notice

29
BOARD'S REPORT
Report of the Board of Directors
Annexure-I................................................................................ 39
Management Discussion & Analysis
Annexure-II............................................................................... 87
Corporate Governance
Annexure-III.............................................................................. 116
CEO and CFO Certificate
Annexure-IV.............................................................................. 117
Sustainability and CSR
Annexure-V............................................................................... 127
Business Responsibility & Sustainability Report
Annexure-VI.............................................................................. 160
R & D and Technological Achievements
Annexure-VII............................................................................ 166
Conservation of Energy, Technology Absorption
Annexure-VIII........................................................................... 168
Offical Language and Vigil Mechanism
Annexure-IX.............................................................................. 171
From AOC-I & AOC-2
Annexure-X............................................................................... 174
Independent Auditor's Report and C&AG Comment

Report of the Board of Directors rail transportation business led to award of prestigious order
for manufacturing and maintenance of 80 sets of “Vande
Dear Members, Bharat” trainsets. This project is being taken-up by BHEL as
lead partner in consortium with Titagarh Rail Systems Ltd.
The Board of Directors takes pleasure in presenting the
Annual Review
and is valued at over ₹23,000 Crore excluding taxes (BHEL
59th Annual Report on the business and operations of your
share at about ₹13,500 Crore).
Company and the Audited Financial Statements for the year
ended March 31, 2023. With regard to future growth perspective, the order booking
for the company in FY 2022-23 touched ₹23,548 Crore (net
Financial Results of taxes), which is highest in the last 5 years. It is also pertinent
(₹ Crore) to note that the company’s efforts in the Industry Sector have
borne fruits and the order booking at ₹9,537 Crore (net of
For the year ended
March 31, March 31,
2023 2022
Corporate Profile
Revenue 22136 20153
Revenue from operations 23365 21211
Profit/(loss) after tax 448 410
Total comprehensive income
430 487
/(loss)
EPS (in ₹) 1.29 1.18
State of Company Affairs
Board's Report
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 taxes) is highest in the last 13 years, with its share at 40% of
in liquidation of Current Year billing to 86% in FY 2022-23 the yearly order book. The reporting of order book is done
from 59% over the past four years. This is a clear indication excluding applicable taxes for better understanding of all
of success of the major initiatives including implementation stakeholders, and is in line with the reporting of revenue
of Integrated Project Management System (IPMS) for real numbers.
time project monitoring, Site Data Digitization for ensuring
single source of data, focus on sequential supplies and The total outstanding order book as on 31st March 2023
technical & financial closure of completed projects. Focused stands at ₹91,336 Crore, net of taxes (PY ₹90,084 Crore).
project management efforts saw excellent results with With the receipt of the prestigious “Vande Bharat” trainset
commissioning of North Karanpura Unit 1, Nation’s first utility order in April 2023, the total outstanding order book has
scale thermal power plant fitted with Air Cooled Condenser crossed ₹1 Lakh crore (excluding taxes), which is the highest
(ACC), as well as commissioning of Unit 1 of the prestigious in last 4 years.
2x660 MW Maitree Super Thermal Power Project, Bangladesh. The increase in revenue in FY 2022-23 has been achieved
Further, Unit 2 of the Maitree Project has been synchronized despite challenges persisting for material availability on
on 28 June 2023 ahead of a very tough time target given by account of geopolitical issues and scarcity of key inputs such
Government of Bangladesh, for the same. as semiconductors. The spares & services business, which
Diversification efforts in recent years saw fruits in the form has been a focus area for your company, recorded a growth
of signing of MoU with Coal India Ltd for setting-up of 2,000 of about 25%.
Notice
TPD Coal to Ammonium Nitrate plant based on BHEL’s Material cost in the recent past has been a challenge, not
indigenous technology for gasification of high ash Indian only for BHEL but also across the industry spectrum,
coal (first proven technology for the same), which has been domestic as well as global. Though metal prices have seen
followed with completion of engineering, optimization & some corrections, they are still at substantially elevated
validation by international experts and formation of the Joint levels. Despite these constraints, your company was able to
Venture is progressing well. Further efforts for increasing our maintain the material cost during FY 2022-23, at levels similar

to previous year. In the coming year, rising raw material prices in terms of no. of days of Revenue from Operations, have
as well as execution of old projects, won through highly reduced to 102 days during FY 2022-23, as against 107 days
competitive bidding, are expected to continue to affect the during FY 2021-22.
financial position & liquidity of the company.
The Trade Receivables were at ₹6,544 Crore as on 31st March
Higher fuel prices have adversely impacted the bottom-line. 2023 (₹6,229 Crore as on 31st March 2022) and Contract
Furthermore, inflation in general is also putting persistent Assets stand at ₹29,740 Crore as on 31st March 2023 (₹26,940
pressures on operational budgets which are being dealt Crore as on 31st March 2022). Though overall receivables have
through stringent budgetary controls measures. The increased during FY 2022-23, there is a reduction in terms of
company is focusing on project completion despite poor no. of days of Revenue from Operations from 571 days last
margins in civil revenues, which would continue to challenge
the bottom-line. Trade Receivables
(No. of Days)
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)
year to 567 days current year. The increase in receivables is
totalling ₹266 Crore, which have helped in the net cash
mainly on account of skewed payment terms in contracts
generation as well as the bottom line.
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
Other operational income, directly contributing to bottom during FY 2022-23.
line, reached its highest levels at ₹1,229 Crore during FY 2022- Dividend
23, which is up by 16% over FY 2021-22. The increase in Profit
After Tax was also aided by continued stringent budgetary The Board of Directors, in its meeting held on May 26, 2023
control on Manufacturing, Administrative and S&D expenses, has recommended a final dividend @20 % (₹0.40 per share
which have been at their lowest level at 6.6% of Revenues, of ₹2 each), amounting to ₹139.28 Crore, out of profit for FY
reflecting strong budgetary controls in the company. 2022-23, subject to your approval.
Concerted efforts & thrust on ‘Project Centric’ operations The Company has a dividend distribution policy in place
resulted in liquidation of current year billing at 86% in FY in pursuance of the requirements of Regulation 43A of the
2022-23, which is similar to last year. The trade receivables 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.
Deposits
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 b) The Directors have selected such accounting policies
& applied them consistently and made judgments and
During FY 2022-23, the company has met its CAPEX and
estimates that are reasonable and prudent so as to give
operating fund requirements through internal accruals. The
a true and fair view of the state of affairs of the Company
company invests any available surplus funds to maximize the
Annual Review
at the end of financial year and of the profit of the
interest income to the company. To meet any intermittent
Company for that period;
operational fund requirement, short term borrowing options
used by the company including WCDL, Commercial Papers c) The Directors have taken proper and sufficient care
(listed on NSE and BSE), PCFC, etc. PCFC borrowings for maintenance of adequate accounting records
provide a natural forex hedge to the company. The company in accordance with the provisions of this Act for
continues to retain its status as Zero Debt Company. safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
Loans and Investments
d) The Directors have prepared the Annual Accounts on a
There are no instances of investments by the loanee in the going concern basis;
Corporate Profile
company or its subsidiary.
e) The Directors have laid down internal financial controls
Credit Rating to be followed by the Company and that such internal
financial controls are adequate and operating effectively;
The credit ratings of your Company are as follows:
f) The Directors have devised proper systems to ensure
Rating Date of Long Term Outlook Short compliance with the provisions of all applicable laws
Agency Rating Rating Term and that such systems were adequate and operating
Rating
effectively.
18-06-2021 CRISIL AA- Negative CRISIL A1+
CRISIL Management Discussion & Analysis
Board's Report
25-07-2022 CRISIL AA- Negative CRISIL A1+
INDIA 01-07-2021 Ind AA- Negative Ind A1+ This report conveys the Management’s perspective on the
RATINGS & external environment, company’s strategy for the future,
30-06-2022 Ind AA- Negative Ind A1+
RESEARCH operating and financial performance, risks and concerns,
24-06-2021 CARE AA- Stable CARE A1+ and initiatives taken in various areas during the year; such as
diversification of business areas, revamping project execution,
CARE 17-06-2022 CARE AA- Stable CARE A1+ cost optimization, technology development, digitalization,
19-06-2023 CARE AA- Stable CARE A1+ quality, etc.
Persistent efforts by the company during the financial year for In the midst of a continuously challenging business and
cutting down miscellaneous expenses and liquidation of old economic environment, your company has continued to
outstanding resulted in positive cash flows from operations focus on regaining growth. Strengthening the core business,
and helped maintain the credit rating of the organization. focus on execution, and determined efforts towards
diversification including increased business in non-coal areas
Material Changes and Commitments affecting the are critical enablers for long term sustainable growth. For
Financial Position further details, please refer Annexure-I to the Board’s report.
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 Pursuant to Regulation 34 of the SEBI (Listing Obligations
and material orders passed by the regulators or courts or & Disclosure Requirements) Regulations, 2015, a report
tribunals impacting the going concern status and company’s on Corporate Governance (including Board & Committee
operations in future. Meetings details) is given at Annexure-II to the Board Report
together with the following,
Suspension of Trading
i. Certificate of Non-Disqualification of Directors under
The Equity Shares of the company are listed on NSE & BSE. Schedule V of the SEBI Listing Regulations.
The shares of the company were not suspended from trading
during FY 2022-23. ii. Auditors certificate on Corporate Governance under
SEBI Listing Regulations & Department of Public
Directors’ Responsibility Statement Enterprises (DPE) guidelines on Corporate Governance.
Notice
Pursuant to section 134(5) of the Companies Act, 2013, the iii. Secretarial Audit Report under Section 204 (1) of the
Board of Directors confirm that: Companies Act, 2013.
a) In the preparation of the Annual Accounts, the applicable Declaration of Independence
Accounting Standards (Ind AS) have been followed along
with proper explanations relating to material departures; 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 Details of changes in Directors & Key Managerial Personnel
the Independent Directors have registered themselves on the Appointment
online database of the Indian Institute of Corporate Affairs
Ms. Arti Bhatnagar, Additional Secretary & Financial Advisor,
(IICA), notified under Section 150 of the Companies Act,
Ministry of Commerce & Industry has been appointed as
2013. In the opinion of the Board, the Independent Directors
Part-time Official Director w.e.f. February 14, 2023.
possess integrity and necessary expertise & experience.
Shri Ramesh Patlya Mawaskar has been appointed as Part-
Compliances time Non-Official (Independent) Director w.e.f. June 8, 2023.
In addition to focus on many other areas, the company Shri Jai Prakash Srivastava, Director (E, R&D) & Director
continuously reviews and strengthens its compliance of (Finance) - additional charge has been designated as Chief
systems and processes. Financial Officer (CFO) of the Company w.e.f. May 26, 2023.
• The Company considers sound Corporate Governance Shri Krishna Kumar Thakur has been appointed as Whole
as one of its core values committing itself to Time (Functional) Director w.e.f. July 4, 2023 and has taken
maintaining high degree of transparency in disclosures. charge as Director (Human Resources).
• To strengthen compliance mechanism across various In accordance with applicable statutory provisions and Article
laws, a quarterly legal compliance report on the 67(iv) of the Articles of Association of the Company, Ms. Arti
Applicable laws/ Acts is reviewed by the Board of Bhatnagar, Shri Ramesh Patlya Mawaskar and Shri Krishna
Directors. Kumar Thakur having been appointed as additional directors,
• Being a listed company, compliance with the SEBI – shall hold directorship upto the 59th Annual General Meeting
(Listing Obligations and Disclosure Requirement) of the Company and are eligible for appointment as Directors
Regulations, 2015 is ensured. There is no adverse at the Meeting.
comment from SEBI for the FY 2022-23 on any financial Further, pursuant to Section 152 of the Companies Act, 2013
matter. and Article 67(i) of the Articles of Association of the Company,
• The Company has complied with the applicable Shri Upinder Singh Matharu and Shri Jai Prakash Srivastava
secretarial standards. will retire by rotation at the Annual General Meeting and
being eligible, offers themselves for re-appointment.
• For preparation of financial statements, the company
ensures compliance to the Indian Accounting Standards Cessation
(Ind AS), Guidance Notes and other authoritative
Dr. Raj K. Agarwal, who was appointed as Part-time Non-
literature issued by the ICAI, Companies Act 2013 and
Official (Independent) Director on November 9, 2021,
other applicable statutes.
ceased to be a Director of the Company consequent to his
The company endeavours to constantly improve its resignation on September 12, 2022 from BHEL’s Board of
disclosures and transparency standards in the Financial Directors. Dr. Raj K. Agarwal tendered his resignation citing
Statements. his pre-occupation in personal affairs and inability to devote
sufficient time towards discharge of his responsibilities as
Contribution to the Exchequer an Independent Director of the Company. Further, he also
The Company, over the years, has been consistently making confirmed that there are no other reasons other than those
significant contribution to the Exchequer, and maintaining provided by him for resignation.
high standards of integrity with respect to tax compliances. Shri Raj Kamal Bindal and Shri Manish Kapoor, who were
During the current year, the company’s contribution to appointed as Part-time Non-official (Independent) Directors
exchequer stood at over ₹3,831 Crore. on January 31, 2020, ceased to be Directors of the Company
on completion of their tenure on January 27, 2023.
Audit Committee
Shri Shashank Priya, then Special Secretary & Financial
The Company has in place a Board Level Audit Committee
Adviser, Ministry of Commerce & Industry who was appointed
in terms of the requirements of the Companies Act, 2013
as Part-time Official Director on October 4, 2019, ceased to
read with rules made thereunder and Regulation 18 of
be Part-time Official Director on February 14, 2023.
the SEBI (Listing Obligations & Disclosure Requirements)
Regulations 2015, the details in respect of which are given Shri Subodh Gupta who was appointed as Director (Finance)
in the Corporate Governance Report. All the issues are fairly w.e.f. April 18, 2018 ceased to be Director (Finance) w.e.f.
and transparently deliberated in the meetings which are held April 18, 2023 in terms of Ministry of Heavy Industries’
at regular intervals. The views and suggestions of the Board communication dated May 17, 2023. Further, he also ceased
Level Audit Committee members are taken into account to be CFO of BHEL w.e.f. April 18, 2023.
and imbibed into the Company’s processes. Further, there
The Board of Directors place on record their deep
has been no instance where the Board of Directors have
appreciation for the valuable services rendered as well as
not accepted the recommendation of the Board Level Audit
advice and guidance provided by Dr. Raj K. Agarwal, Shri Raj
Committee.

Kamal Bindal, Shri Manish Kapoor, Shri Shashank Priya and Company”. This initiative will further strengthen BHEL’s
Shri Subodh Gupta during their respective tenure on the position as a responsible and sustainable organization.
BHEL Board. In addition to generating goodwill for the company, it
is expected to reduce costs and improve availability of
In compliance with Regulation 36(3) of the SEBI (Listing
Annual Review
borrowings & insurance in the long run and will also help to
Obligations & Disclosure Requirements) Regulations, 2015,
create a culture of innovation within the company to design,
brief resume of the Directors proposed for appointment and
engineer and manufacture environment friendly products.
re-appointment along with the nature of their expertise in
specific functional areas and names of companies in which Business Responsibility and Sustainability Report
the person holds directorship along with the membership of
the Committees of the Board are given in the explanatory In line with the requirement of the listing regulations, Business
statement/ annexure to the Notice. Responsibility and Sustainability Report providing disclosures
in environmental, social and governance perspectives is
CEO/ CFO Certificate enclosed at Annexure-V to the Board’s Report.
Corporate Profile
CEO/CFO certificate as per Regulation 17(8) of the SEBI Achievements of R&D and Technological Development
(Listing Obligations & Disclosure Requirements) Regulations,
2015 is placed at Annexure- III to the Board’s Report. BHEL, in line with country’s vision towards net zero carbon
emissions by 2070 for a sustainable future, has realigned
Consolidated Financial Statements its innovation ecosystem for development of cleaner
technologies. The company is working towards development
The brief on consolidated financial statements prepared
of products and systems in new business areas; such as coal to
pursuant to section 129 (3) of the Companies Act, 2013 and
chemicals, high efficiency thermal plants, rail transportation,
Regulation 34 of the SEBI (Listing Obligations & Disclosure
defence, aerospace, hydrogen value chain, downstream oil
Requirement) Regulations 2015, is given in section 1.8.3
& gas, etc.
under Management Discussion & Analysis.
Board's Report
In FY 2022-23, BHEL has incurred an expenditure of ₹691
Sustainable Development Crore towards R&D activities, which is approx. 3% of the
We, at BHEL, tirelessly endeavour for sustainable operations revenue. This includes expenditure incurred on R&D projects
in our various business processes & activities. Our mission taken up for development of new products, processes
statement – ‘Providing sustainable business solutions in the and systems as well as efforts made for modifications/
fields of Energy, Industry & Infrastructure’ bears testimony improvements in products and designs against customer
to our commitment for contributing towards Sustainable requirements. During the year, BHEL has filed 503 patents
Development and aspires to augment the industrial effort in and copyrights applications, enhancing the company’s
this direction. intellectual capital to more than 5400 nos. Approx. 19% of
the company’s revenue, amounting to ₹4,212 Crore has been
Sustainable development at BHEL addresses all three pillars of achieved from its in-house developed products, systems and
sustainability; namely- Environmental, Economic and Social. services. Further details of major developments have been
Being a responsible and sustainable organisation, BHEL provided in Annexure-VI to the Board’s Report.
strives towards integration of environmental, health, social
equity and economic vitality within the organisation and Implementation of Official Language
beyond. Manifestation of this vision is evident in our actions
Official Language cells and Official Language Implementation
apropos greener product development, increased renewable
Committees have been established in all Units/Divisions/
energy generation and usage, efficient water management,
Offices of BHEL, with Rajbhasha Officers working in all these
enhanced green cover, emission reduction, optimization of
cells. Additionally, in the last two years, a lot of emphasis has
natural resources usage and improved energy efficiency and
been given on Rajbhasha implementation. More than 100
conservation.
Rajbhasha Chakras have been formed across the company
The brief of some of these activities that help us move to motivate the employees to use Hindi in their day to day
towards a sustainable future are given in Annexure-IV to the official work and expedite Rajbhasha implementation which
Board’s Report. has enhanced the use of Hindi across the Company. Quarterly
meetings were held by the committees in all the Units/
Green Company Divisions including Corporate Office during the year. Several
Climate change has today occupied the centre stage in activities in the form of events, workshops, competitions were
policy making across the globe and is seriously impacting organized during the year. Your company is also contributing
Notice
the way businesses work. At the national level, Govt. of India as a member in the Testing Committee of the Memory Based
has adopted ‘Panchamrit’ to deal with these challenges as Translation Software ‘Kanthastha 2.0’ and its mobile-app
well as committed to Net Zero target by 2070. As part of version by the Department of Official Language, Ministry of
our ethos for sustainable development, the company has Home Affairs, Government of India. Further details have been
now undertaken a major initiative for “Making BHEL a Green provided in Annexure-VIII to the Board’s Report.

Vigil Mechanism of its operations. We believe that good health, safety and
environmental performance will result in long-term benefits,
BHEL advocates the principles of Good Governance,
in terms of enhanced customer loyalty, valuable partnerships
Transparency, Probity and Ethics so as to ensure highest level
& collaborations and sustainable development.
of integrity in its functioning. The company has in place a
full-fledged Vigil Mechanism consisting of Vigilance, Internal BHEL, in its pursuit of achieving the highest levels of
Audit, Whistle Blower Policy, Independent External Monitors Occupational, Health & Safety and Environmental
as well as Board Level Committee. performance, has got its manufacturing units and Power
Sector regions certified under Occupational Health and
Vigilance function of BHEL is headed by Chief Vigilance
Safety Certification (ISO 45001:2018) and Environmental
Officer (CVO) who acts as an extended arm of Central
Management Systems Certification (ISO 14001:2015). To
Vigilance Commission (CVC) for monitoring the affairs of the
enhance regular compliance, internal audits of manufacturing
Company. Units & Divisions of BHEL have a Vigilance set-up
units and project sites are also carried out by a team of HSE
headed by a senior officer reporting to the CVO.
experts from within the organisation.
A panel of Independent External Monitors (IEMs) is in place
Further details are provided in Annexure-VIII to the Board’s
to oversee implementation of Integrity Pact, and address
Report.
concerns related to the same. The Company also encourages
reporting of unfair & unethical practices and has a Whistle Data and Cyber Security
Blower Policy which provides adequate safeguard to the
complainant against victimization. In today’s hyper connected world, data and cyber security is of
paramount importance, especially for the country’s foremost
The “Board Level Audit Committee” (BLAC) reviews the engineering organization in heavy engineering sector. In this
functioning of the Whistle Blower / Vigil Mechanism, and regard, BHEL has implemented advanced security measures
annual review of the Vigilance function is also done by CMD to protect its IT assets and data from cyber threats. These
/ Board of Directors through structured meeting(s). Further, measures include a multi-layered defence system that
details are provided in Annexure-VIII to the Board’s Report. incorporates the latest technologies such as perimeter
security for datacentres, data networks, applications, and end
Health, Safety & Environment (HSE)
user devices. Further details have been included in Section
BHEL focusses on developing sustainable practices for 1.16 of the Board Report.
ensuring the safety & health of its workforce as well as
protecting the planet from various environmental impacts
Hon’ble Union Minister of Heavy Industries, Dr. Mahendra Nath Pandey, inaugurated the ‘Green BHEL’ initiative during a visit to the company’s
Corporate Office at New Delhi

Other disclosures requisite number of independent directors on its Board and
(ii) completion of tenure of two non-executive directors on
Information in accordance with the provisions of Section
27.01.2023, resulting in the Company not having requisite
134(3)(m) of the Companies Act, 2013 read with Companies
number of non-executive directors on its Board.
(Accounts) Rules, 2014 regarding conservation of energy,
Annual Review
technology absorption and foreign exchange earnings and The Management noted the observation and explained
outgo is given at Annexure-VII to the Board’s Report. that BHEL, being a Government Company, the directors,
including the independent directors are appointed by the
As per provisions of section 197 of the Companies Act,
Government of India. The Company has been in constant
2013 read with the Rule 5 of the Companies (Appointment
communication with the Government for appointment of
and Remuneration of Managerial Personnel) Rules, 2014,
requisite number of independent directors on its Board so
every listed company is required to disclose the details of
as to ensure compliance with Corporate Governance norms
the remuneration of the Directors etc. in the Board report.
enunciated under the SEBI (Listing Obligations and Disclosure
However, as per Notification No. GSR 463(E) dated June 5,
Requirements) Regulations, 2015, Companies Act, 2013 as
2015 issued by the Ministry of Corporate Affairs, Government
Corporate Profile
well as the DPE Guidelines on Corporate Governance. The
Companies are exempted from complying with provisions
matter of filling up of these vacancies is under process at the
of section 197 of the Companies Act, 2013. BHEL being a
end of Government.
Government Company, such particulars are not included as
part of Board’s Report. Cost Auditors
Statement pursuant to Section 129 of the Companies Act, In terms of provisions of Section 148 of the Companies Act,
2013 (Form AOC-1) relating to subsidiary companies & joint 2013 and as per the Companies (Cost Records and Audit)
ventures and Form AOC-2 pursuant to section 134(3)(h) of Rules, 2014 and amendments thereof, the Board, on the
the Companies Act read with Rule 8(2) of the Companies recommendation of the Audit Committee, approved the
(Accounts) Rules, 2014 is given at Annexure-IX to the Board’s appointment of seven firms of Cost Accountants as Cost
Board's Report
Report. Auditors for auditing the cost accounts of your Company for
FY 2022-23. Cost accounts and records as specified by the
Auditors
Central Government under sub-section (1) of section 148 of
The Statutory Auditors of your Company are appointed by the Companies Act, 2013 have been properly maintained and
the Comptroller and Auditor General of India. Three firms of complied with.
statutory auditors were appointed as joint statutory auditors
The detail of cost auditors appointed for FY 2022-23 are given
and four firms were appointed as branch auditors. The names
separately in the Annual Report. The Cost Audit Report for
of audit firms appointed for FY 2022-23 are given separately
FY 2021-22 has been filed under XBRL mode on September
in the Annual Report.
02, 2022, well within the due date of filing and there was no
Auditors’ Report on the Accounts qualification in the cost audit report.
The Auditors’ Report on Standalone and Consolidated Appreciation and Acknowledgements

Financial Statements for FY 2022-23 of the Company
Your Directors gratefully acknowledge with deep sense of
are given at Annexure- X to the Board’s Report. There is
appreciation, the co-operation and guidance received from
no qualification in the Auditors report on the Financial
the Government of India, particularly the Ministry of Heavy
Statements of the Company. The Supplementary Audit
Industries in various spheres of the company’s operations
report under section 143(6) read with section 129(4) of the
and strategic initiatives.
Companies Act,2013 issued by the Comptroller & Auditor
General of India also forms part of Annexure-X. We are deeply appreciative of and thankful to various ministries
and statutory authorities/ departments of the Government of
Secretarial Audit India for their valuable support and continuous cooperation.
In terms of section 204(1) of the Companies Act, 2013, the The Directors place on record their sincere appreciation
Company engaged M/s Agarwal S. & Associates, Company towards the Company’s valued customers in India and abroad
Secretaries in whole-time practice, as Secretarial Auditors for for their co-operation in addressing various issues faced in
conducting Secretarial Audit for FY 2022-23 and their report complex long gestation construction contracts.
forms part of Corporate Governance section.
The Directors also express their gratitude to the Comptroller
Secretarial Auditor in their Audit Report have observed non- and Auditor General of India, professional bodies, Statutory
compliance in composition of the Board of Directors as per
Notice
Auditors, Branch Auditors, Secretarial Auditor and Cost

Regulation 17 (1) (a) & (b) of the Securities and Exchange Board Auditors for their constructive suggestions and continuous
of India (Listing Obligations and Disclosure Requirements) cooperation.
Regulations, 2015, Section 149 (4) of the Companies Act, 2013
and paras 3.1.2 & 3.1.4. of the DPE Guidelines on Corporate The Directors place on record their sincere appreciation
Governance on account of (i) resignation of one independent towards the company’s esteemed shareholders for the
director on 30.05.2022, resulting in the Company not having support and confidence reposed by them in the management

of the company and look forward to the continuance of in Last but not the least, your Directors wish to place on record
future. their sincere appreciation for the diligent efforts, hard work
and commitment put in by all BHEL employees, who have
The Directors also wish to place on record their appreciation
worked day and night, to meet the company’s commitments.
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. For and on behalf of the Board of Directors of
BHARAT HEAVY ELECTRICALS LTD.
Dr. Nalin Shinghal

Place: New Delhi
Date: July 28, 2023

Annexure-I to the Board’s Report that include electric locomotive for freight, semi high-speed
trainsets of different configuration for passenger etc. This is a
Management Discussion and Analysis
major target segment for BHEL, for the future.
1.1 Economic & Business Overview India has launched the “National Hydrogen Mission” to make
Annual Review
During FY 2022-23, India was one of the fastest growing it a Global Hub for production, utilization and export of
economies amidst a slowing global economy. Inflationary Green Hydrogen and its derivatives. The mission envisages
trends, both globally and in India, caused central banks to creation of export opportunities for Green Hydrogen,
raise policy rates which had some impact on businesses decarbonisation of industry, mobility and energy sectors,
during the period. reduction in dependence on imported hydrocarbons,
development of indigenous manufacturing capabilities,
In line with India’s economic growth of 7.2% in FY 2022- and development of cutting-edge technologies. Under the
23, demand for energy increased during the year and mission, India’s Green Hydrogen production capacity is
electricity generation increased by 8.9%. Considering India’s targeted to reach at least 5 MMT per annum by 2030. This
Updated Nationally Determined Contribution as well as
Corporate Profile
opens up a number of opportunities in the green hydrogen
need for ensuring energy security & affordability through value chain, including electrolyzers and other equipment
base load generation, CEA’s NEP is projecting approx. 254 (like storage cylinders, etc.). BHEL has taken-up work on
to 263 GW coal based installed capacity by 2032. This setting-up of a Centre of Excellence for Electrolysers, Type-
translates to a requirement for cumulative new ordering for IV Hydrogen storage cylinders and National testing facility
coal based power plants of approx. 15-20 GW in next 4-5 for Type-IV Hydrogen storage cylinders, paving the way for
years. Moreover, energy security concerns due to adverse future scalable businesses in this area.
geopolitical scenario, rising power demand and intermittency
of renewable power sources are making growth in thermal 1.2 Opportunities & Threats
power an imperative for the country.
The pick-up in investments post COVID, rejuvenation of
Board's Report
BHEL re-asserted its leadership position in the thermal thermal power sector, capacity expansion plans in core
power market by winning the order for 2x660 MW NTPC sectors of economy, and “AatmaNirbhar Bharat Abhiyaan”
Talcher Thermal Power Project on EPC basis during the year. have resulted in Indian markets bustling with new
Significantly, this is the first coal based thermal order placed opportunities. Besides upcoming significant opportunities
in the country after a gap of almost three years. Further, there in thermal, hydro and nuclear segments, transmission area
are a number of opportunities in hydro, nuclear, transmission is also expected to offer multiple opportunities in view of
and spares & services. It is expected that coal would play a the increasing renewable energy generation from remote
major role, both as a reliable source of energy and feedstock areas. Spares and Services business is also providing
for chemical industry. The National Coal Gasification Mission steady and sizable opportunities. In rail transportation, the
(NCGM) launched by the Hon’ble Prime Minister envisages extensive upgradation program is opening up new business
phase-wise implementation for 100 million tonnes of opportunities. Modernisation and indigenisation of Indian
Coal Gasification by 2030. The coal gasification process armed forces have assumed strategic importance in light of
produces synthetic gas (syngas) which finds its application geopolitical tensions, and offer not only significant business
as a feedstock to production of chemicals like ammonia, opportunities but also opportunity to directly contribute
methanol, ammonium nitrate, di-methyl-ether etc., which are towards safety and security of the nation. Coal to chemicals
otherwise imported or produced from imported Natural Gas. and hydrogen economy are the upcoming areas, which are
Besides this, synthetic gas, can also be used in the production expected to bring substantial self-reliance to the nation and
of electricity using IGCC technology. The NCGM is expected bolster business opportunities.
to contribute to the AatmaNirbhar Bharat initiative in a major
The impact of ongoing geopolitical tensions as well as
way. This creates enormous opportunities for BHEL for
inflationary trends have adversely affected the pace of global
commercialization of its indigenously developed Pressurized
economic growth. The resultant impact on addition of new
Fluidized Bed Gasification (PFBG) technology for generating
global capacities weighs heavily on the international business
syngas from high-ash Indian coal. Core sectors of the
opportunities. Prolonging of current geo political tension,
economy like steel, refineries, cement are upbeat about their
and its cascading effect to new geographies and markets
expansionary plans, riding on robust economic growth, and
may also have severe impact on supply chains, thereby
receding threat of pandemic. This revival is translating into
hurting profitability due to increased input material costs and
demand for capital goods. BHEL, as an engineering major, is
underutilisation of capacities.
exploring business in these areas through indigenization of
various imported equipment and has already achieved initial Your company is keeping a watch on both opportunities
Notice
successes in indigenous development of equipment for steel and threats, and accordingly preparing itself to encash
& oil sectors. opportunities, and thwart threats by taking proactive
measures.
Indian Railways is taking a number of initiatives to upgrade,
modernize and decarbonize railway operations. Both freight Your company has also prepared a Strategic Plan 2022-27
and passenger segments are attracting sizable investments and a number of initiatives have been taken to address the

immediate challenges of profitability, liquidity, quality, and large scale integration of renewables. To capitalize on this
delayed project execution, etc., apart from strategies for upcoming opportunity, BHEL is offering customized solutions
transforming BHEL into a ‘Future-Ready Global Engineering for flexible operation of coal based thermal power plants.
Organisation’ organization, diversifying into new products & With concerted efforts, BHEL has successfully demonstrated
services, making the company self-sufficient in technology, its capability for offering flexible operation solution by
having a skilled and motivated workforce, etc., which are completing its first order in this area and successful
already yielding results. demonstration of performance parameters. Further, four
more orders have been received during FY 2022-23. Further,
1.3 Business initiatives CEA has issued guidelines for implementing Flexibilization
1.3.1 Retaining leadership in Traditional Business in existing thermal sets, which is likely to generate further
business in this domain.
While the focus on renewables will continue, however coal
based power plants are expected to remain the mainstay of 1.3.2 Diversification Initiatives
India’s power generating capacity in the coming years, in
view of their suitability for continuous & round-the-clock Building and maintaining profitable growth is a key focus area
operation, availability of technology and the large domestic for the company and for this, the company is working towards
reserves of coal. In order to meet the demand for power in the maintaining leadership in the core business, and diversifying
future, especially the baseload of the grid, coal based high- by harnessing opportunities emerging out of Government’s
efficiency supercritical power plants are expected to play a focus on infrastructure development and indigenization.
crucial role. Though the ordering levels in the thermal sector Giving top priority to strengthen technology base in existing
have remained muted in recent years (with nil ordering for and new areas, your company is exploring and pursuing range
almost three years between Aug’19 to Sep’22), the segment of opportunities in Clean Coal, Transportation, Defence and
is now seeing revival of orders and good order pipeline of Aerospace segments.
coal-based power plants which are expected to fructify Concerted efforts over the past year resulted in BHEL receiving
in the near future. BHEL continues to assert leadership the prestigious order in April 2023, for supply of 80 trainsets of
in this core business areas and is well placed to capitalize “Vande Bharat Express”, in manufacturing cum maintenance
on the opportunities arising in thermal segment. Offering mode, marking success of a major diversification initiative
cost competitive solutions as well as improved efficiency in the Railway segment. BHEL is gearing up to address the
parameters resulted in BHEL winning the order for 2x660 MW upcoming opportunities in rail transportation, especially the
NTPC Talcher Thermal Power Plant and it is also favorably upcoming requirements of semi high speed trainsets as well
placed in another major tender for an upcoming thermal as higher rating electric locomotives.
power plant.
Considering the current geopolitical situation and consequent
BHEL’s focus on hydro power segment has resulted in a good GoI’s impetus on indigenisation in Defence Sector, BHEL,
order booking in the segment. The company has continued with its wide range of design, engineering & manufacturing
its dominance in hydro segment by enhancing customer capabilities, is well placed to play an important role in
base and winning key orders for Electro Mechanical works, indigenization of critical national defence requirements.
Renovation, Modernization & Upgradation in FY 2022-23. Strong focus on defence and aerospace business in the recent
BHEL is now looking forward to capitalize on the years resulted in the highest order booking for the segment
opportunities arising in thermal sector by offering Advanced in FY 2022-23. This includes orders for upgraded SRGM, heat
Ultra Supercritical (AUSC) technology having best-in-class exchangers for fighter aircraft and maiden order for 30 Ah
efficiency, lower rating supercritical plants and indigenously Li-ion battery for AMCA (Advanced Medium Combat Aircraft)
developed clean coal technologies; such as coal gasification. making BHEL the sole Indian supplier of Li-ion batteries for
next generation aircraft, amongst others.
BHEL is further expanding its Spares & Services business by
leveraging its vast existing fleet of thermal, hydro, nuclear and In addition, Coal Gasification and Green Hydrogen are
captive sets as well as offering spares & services for non-BHEL seen as emerging growth areas. BHEL is a pioneer in coal
sets. Considering BHEL’s superior equipment performance gasification and has already indigenously developed
and the concerted efforts made during the year, the company Pressurized Fluidized Bed Gasification (PFBG) technology for
achieved highest-ever order booking in FY 2022-23. Long gasification of high-ash Indian coals. BHEL has established
term spares supply as well as service agreements have been a 168 TPD Coal gasification plant based on its PFBG
signed with a number of customers ensuring quick availability technology and another 0.25 TPD Coal to Methanol pilot
of spares and services to customers. Further, in order to plant at Hyderabad. To commercialize this technology BHEL
improve delivery cycle and enhance customer satisfaction, has indigenously done the design for upscaling the 0.25 TPD
BHEL has undertaken an initiative of stocking raw material of to over 2000 TPD gasifier, which is a unique achievement.
fast consuming spares. Your company is also offering a range The design of the upgraded PFBG gasifiers for high ash Indian
of IT enabled solutions in this segment. coal has been further optimized and got validated by national
& international experts, thereby ensuring BHEL’s technical
Flexible operation of thermal power plants is expected to readiness for commercialisation of this technology. BHEL
be a key requirement to ensure grid stability in the face of has also signed MoUs with Coal India Limited (CIL) and NLC

India Limited (NLCIL) for commercial size coal gasification 1.4.3 Receivable management
projects with an aim to set up a coal to ammonium nitrate
Maintaining liquidity continues to be a top priority for the
project with CIL and a lignite-based gasification pilot plant
company. Concerted efforts on quality billing and resolution
with NLCIL for power generation in line with National Coal
of long standing issues with customers have resulted in
Annual Review
Gasification Mission.
containing Trade Receivables at ₹6,544 Crore in FY 2022-
Further, Green Hydrogen is seen as a sunshine sector for 23. However, some major projects under execution by the
coming times and is a promising business opportunity Company have skewed payment terms in the form of supply
for BHEL. In line with National Green Hydrogen Mission, payments partly linked to achievement of intermediary
BHEL is gearing-up and exploring areas like electrolyser milestones and increased proportion of payments linked to
manufacturing, storage and distribution, fuel cell, etc., in completion activities etc., which have resulted in an increase
the green hydrogen value chain. Efforts are being made to in contract assets.
set up a Centre of Excellence in this area as well as to enter
Despite these constraints, the Company has been making
into strategic partnerships with global OEMs to leverage
all out efforts to liquidate the old as well as current year
Corporate Profile
upcoming opportunities in this sector.
outstanding receivables in a timely manner. The outcome of
Implementation of cross cutting enablers for harnessing these these efforts has resulted in increase in percentage liquidation
adjacent business areas, include resource augmentation, of Current Year billing to 86% from 59% over the past four
enabling organization structure, forging partnerships, and years.
technology development.
Focus on realizing old debts through closure of punch points,
1.4 Operational excellence completion of performance guarantee tests and settlement
1.4.1 Revamping Project Execution of long pending time extension cases is enabling cash flow
from commissioned projects.
Your company’s change in operational ideology from being
Board's Report
“Revenue Centric” to “Project Centric” has led to successful 1.4.4 Quality focus
resolution of performance issues, substantially arresting
The “Quality First” initiative, launched earlier, has been
project delays, reduction in damages & rework for material/
implemented in mission mode throughout the organization,
equipment lying at sites for long periods and improving
yielding remarkable results. To enhance the maturity of our
quality of material/ equipment available for Erection &
Quality systems, a comprehensive “Quality Management
Commissioning. As a result of this, liquidation of current year
Effectiveness Review (QMER)” model is used for maturity
billing stays strong at 86%, similar to FY 2021-22 (up from
assessment of units. Additionally, Business Excellence
59% four years ago). Successful implementation of Integrated
journey has been revitalized in alignment with the European
Project Management System (IPMS) coupled with ongoing
Foundation for Quality Management (EFQM) 2020 framework.
work on Site Data Digitization (SDD) has enabled real time
To gauge the effectiveness of Quality Systems and Practices,
monitoring of project progress as well as quick intervention
a comprehensive model “QHI (Quality Health Index)” is being
in case of issues. These efforts reflect in the company’s
implemented. Furthermore, Quality Systems are digitalized to
achievements of doubling its erection tonnage at project sites
enable Digital Transformation, and Quality Best Practices are
over the past three years, as well as higher project closures
shared & absorbed through Quality conversation “Qonverse”
and lower number of outstanding punch points, despite
platform.
decline in thermal ordering by utilities (thermal currently
accounts for over 75% of BHEL’s turnover). These concerted efforts resulted in BHEL being awarded
the CII-EXIM Bank’s first-ever ‘Special Jury Commendation
1.4.2 Cost optimisation for Adoption and Nurturance of Business Excellence’,
In view of the rising material content, cost optimisation underscoring our dedication to fostering and embracing
remains a thrust area in the company’s operation with Cost excellence in all aspects of our operations. Additionally,
Optimisation Cell (COC) as focal point. As part of the Strategic BHEL units HPBP Trichy, HEEP Haridwar, HEP Bhopal, and
Plan 2022-27, Design to Cost (DTC) exercise has been HPEP Hyderabad have received the prestigious “Platinum”
initiated for selected products/ systems, which is expected to recognition while PEM Noida, EDN Bengaluru, BAP Ranipet
improve BHEL’s competitiveness in the coming years. and PSNR Noida bagged “Gold Plus” recognition in “CII EXIM
Bank award for Business Excellence 2022”.
Analysis of high value purchase orders, reduction in steel
procurement cost, increase in vendor base of high value items, Further details are included in Section 1.11.
rationalisation and standardisation of material specification,
1.4.5 Digital Transformation
Notice
effective utilization of surplus material at Units and project

sites, focus on indigenisation of components are the major Recognizing the evolving business landscape, your company
activities which have contained input price increases despite has undertaken digital transformation as a key focus area and
major price increases in steel, copper, cement, etc. These is integrating digital technologies across its operations. The
are expected to yield reduction in direct material costs in transformation is leading to streamlined processes, enhanced
ongoing projects. efficiency and improved customer experience. By leveraging
digital solutions, BHEL continues to innovate and adapt to

changing market dynamics, and drive sustainable growth in 1.5 Employee Development & Engagement
the digital era.
BHEL acknowledges that the success of any organization
With the objective of implementing IT enabled Project is possible only with a dedicated and motivated workforce.
Management, Integrated Project Management System As BHEL transitions towards becoming a Future ready
(IPMS), was initially implemented for 7 nos. thermal sector Global Engineering Organization, substantial efforts have
projects. During FY 2022-23, it has been scaled to cover all been devoted to aligning human resources and addressing
new & major customer projects achieving system stability concerns in order to achieve viable solutions. Another stride
and maturity. With a view to improve real-time monitoring of in enhancing employee engagement was the implementation
site related activities with single point capture of data, your of Unit Reach-out Programs by Corporate HR teams during
company has started implementing the Site Data Digitization FY 2022-23. These programs aimed to comprehensively
initiative. This would enhance productivity and efficiency by comprehend employee-related issues and concerns, raise
reducing data errors and provide comprehensive insights awareness of organizational goals, elucidate the rationale
for better decision-making. Also, your company is migrating behind organizational changes, and actively work towards
from traditional MIR based analytics to Self Service Business resolving expressed concerns.
Intelligence (BI) & Data Analytics backed by Data Warehouse
Employee development is of paramount importance to
and Data Governance. The skillsets of workforce to use
BHEL. BHEL has also undertaken a review of its leadership
contemporary IT technologies are continuously upgraded for
competency model and subsequently identified development
quick adoption and scaling.
interventions, such as Management Development Programs
Your company has made significant progress in (MDPs) at renowned institutions like IIMs, to develop potential
implementation of in-house developed Industry 4.0 solution leaders within the organization.
for machines across manufacturing divisions. The solution
As part of the ongoing comprehensive overhaul of BHEL’s
allows for collection of real-time data and analyses the same,
performance management system and project management
resulting in reduced downtime and increased productivity
ecosystem, strategic measures have been implemented
of CNC machines. This proprietary solution has market
to align employee performance with role requirements,
competing features which has been extensively tested and
individual results, and their impact on unit-level and
scaled for 70 nos. of machines, across the organization. This
company-level outcomes.
flagship solution has been appreciated in several industrial
fairs including “Hannover Messe 2023” at Germany.
New CNC Hydro Block set-up in Bhopal plant, for augmenting hydro manufacturing capacities

In response to the dynamic business environment, BHEL pumps, utilized by upstream oil & gas companies, which are
has implemented various initiatives, including reskilling hitherto being imported, is another example of indigenization.
programs for executives, supervisors, and workers, aimed at Various Flue Gas Desulphurization components have also
thriving amidst continuous changes. Furthermore, BHEL has been indigenized which will help save precious forex for the
Annual Review
strengthened internal communication channels, developed country. Your company has also received developmental
e-Modules for continuous online training to meet evolving orders for products like 15000 psi Well Head and X-MAS Tree
needs, and bolstered knowledge-sharing processes. Valves, etc.
In conclusion, BHEL remains resolute in its commitment to Your company is now focusing on technology development
employee development and engagement. By prioritizing in key growth areas; such as rail transportation, defence,
these cohesive and formal initiatives, BHEL aims to establish aerospace, carbon capture and green hydrogen which
a robust framework that aligns with organizational objectives, are expected to yield positive outcomes in the future.
fosters skill enhancement, and empowers employees to The company is actively working on development of
excel within the evolving business landscape. critical technologies including underslung propulsion for
Corporate Profile
trains, high-speed locomotives, urban mobility solutions,
1.6 Technology development strategic defence equipment, fuel cell technology for
Govt. of India’s impetus on Make in India and AatmaNirbhar green power generation, PERC solar cells, electric vehicle
Bharat is expected to offer substantial opportunities for chargers, and electrolysers for hydrogen generation.
indigenization across various businesses. Over the past few Further details are included in Annexure VI.
years, BHEL has been focusing on achieving technology
1.7 Profile and Performance of Business Segment
leadership and self-sufficiency in its areas of operations, as
well as for development of new technologies across its areas The company has two business segments i.e. Power &
of business. The company’s efforts for cleaner use of coal Industry. These segments are driven by the three business
resulted in the development & establishment of indigenous divisions i.e. Power Sector, Industry Sector, and International
Board's Report
coal gasification technology—first in the country—and it is Operations.
now in the process of commercializing the same. This is
The Power segment comprises thermal, gas, hydro and
another step for the country in AatmaNirbharta, to utilize its
nuclear power plant businesses, spares & services business
vast coal reserves for manufacturing chemicals which are
apart from new businesses of coal to chemicals, emission
currently being imported. The Advanced Ultra Supercritical
control equipment and spares for Non-BHEL sets. BHEL
(AUSC) technology developed in collaboration with NTPC
has been in this business for more than five decades, having
and IGCAR, will further assist in reducing carbon emissions
commissioned its first coal-based set in 1969.
from coal fired power plants. Replacement of old and
ageing power plants with AUSC sets will substantially reduce The Industry segment caters to major equipment supplies
emissions during the life of the project. and EPC works for a number of industries including
transportation, transmission, defence, aerospace, captive
BHEL is also implementing initiatives to indigenize critical
power plants, process industries, renewables, downstream
components, and collaborate with academic and research
oil & gas, and energy storage, among others.
institutions for joint development. Development of sucker rod
Notice

Profile &
Performance of
POWER
Business Segments SECTOR
1.7.1 Power Sector GW and has an annual electricity generation of ~1,624 Billion
Overview Units (BUs) (as on 31st March 2023). Notably, the electricity
generation has witnessed a growth rate of 8.9% on year-to-
India has embarked on a strong economic growth journey, year basis, a trend which is expected to continue in near-to-
and the “AatmaNirbhar Bharat Abhiyaan” along with large
Annual Review
medium term as well.
scale infrastructure development will play pivotal role in
creating the base for the same. The nation’s energy sector The capacity addition from Renewable Energy Sources (excl.
growth continues to remain strongly correlated with the Hydro) was ~15 GW in the year, with solar power capacity
economic growth of the country. Accordingly, availability addition contributing ~13 GW to it, highlighting the marked
of reliable and quality electricity for all at affordable rates shift in the country’s electricity growth pattern.
becomes vital for sustained economic growth.
Current Business Environment
India currently possesses an installed capacity base of ~416
The Power Sector is in the midst of a major transition, with
growing international focus on sustainable development
Corporate Profile
and climate change mitigation. India has also made major
commitments towards decarbonisation in the form of the five
elements for climate change mitigation, the “Panchamrit”.
At the same time, there is continued focus on industrial
development and infrastructure creation, with India expected
to remain one of the fastest growing economies in the world.
The nation is endeavoring to balance these requirements
of sustainable development and climate change mitigation
with those of economic development & aspirations of our 1.4
Board's Report
billion people.
Recent Government policies have displayed a marked shift
towards Renewable Energy Sources (RES) based power.
While substantial opportunities are expected to emerge in the
As on March 31, 2023 renewables, at the same time, hydro and nuclear segments,
Source: Central Electricity Authority (CEA), Ministry of Power
and coal based power plants are expected to remain the
Notice
Unit 1 of 2x660 MW Maitree STPP, Bangladesh—one of the largest coal-fired power plants in Bangladesh, which commenced
commercial operation, was inaugurated by Hon'ble Prime Minister of India

mainstay of India’s power generating capacity in the coming In India, presently Nuclear with about 7.4 GWe installed
years, in view of their suitability for continuous & round- capacity, contributes about 1.6% of generation capacity and
the-clock operation, availability of technology and the large 3% of generation, and saves more than 41 million tonnes
domestic reserves of coal. In order to meet the demand of CO2 emissions annually, compared to the emissions that
for power in the future, especially the baseload of the grid, would be generated by equivalent generation from coal-
coal based high-efficiency supercritical & ultra-supercritical based power plants. Government of India plans to triple
power plants are expected to play a crucial role, especially the nuclear generation capacity which will provide multiple
till grid parity is achieved for battery energy storage systems opportunities for your company. BHEL is strategically placed
(BESS). to address this market and maintains the distinction of being
the sole Indian supplier for nuclear turbine and generators
The ordering in the Indian thermal sector have remained
and is associated with all three stages of the country’s nuclear
muted in recent years (with nil ordering for almost three
power program.
years between Aug’19 to Sep’22), and now the country is
seeing revival in the thermal segment ordering. BHEL won Offerings
the EPC order for 2x660 MW NTPC Talcher TPP, and is also
favorably placed in another major tender for an upcoming BHEL is one of the few companies in the world that
thermal power plant. Also, there is a good order pipeline of manufactures & supplies equipment for the entire range of
coal-based power plants (15-20 GW) which are expected power plants, with proven capabilities for executing thermal,
to fructify in the next 4-5 years. Further, more than 50 GW gas, hydro and nuclear power projects.
of thermal power plants in the country will be more than In thermal power segment, BHEL has the capability for concept
30 years old by 2030 which are expected to provide huge to commissioning of thermal power plants, encompassing
opportunities for Renovation & Modernization (R&M) for life steam turbines, generators, boilers and associated auxiliaries
extension and performance & efficiency upgradation as well up to 1,000 MW ratings. The Company has the experience of
as brownfield development. executing numerous projects with supercritical thermal sets
As a result of the Government’s focus on lower emissions of 660/700/800 MW ratings on EPC basis.
from thermal power plants, opportunities are expected to BHEL offers Gas Turbines and matching Generators upto 299
continue from Emission Control Equipment business and MW (ISO) rating, tailored to meet specific needs, for both
Renovation & Modernization (R&M) Business. Thermal utilities open and combined cycle operation. BHEL also supplies and
in the country are exploring implementation of government executes Circulating Fluidized Bed Combustion (CFBC) boilers
norms for reduction in Suspended Particulate Matter (SPM), for thermal plants, suitable for wide range of low-calorific
NOx & SOx in the coming years. Ordering for emission control fuels like pet-coke, lignite, etc. Recently, BHEL entered into
equipment saw traction from various utilities like OPGCL, a technology tie-up with Sumitomo SHI FW Energia Oy,
GSECL, TANGEDCO during FY 2022-23 and a number of Finland for supercritical and subcritical Circulating Fluidised
tenders are in pipeline, both from central and state sector Bed Combustion (CFBC) Boilers.
utilities, for retrofitting of emission control equipment in the
existing power plants. In nuclear power segment, BHEL is amongst the few
organizations which are associated with all the three stages
Capacity addition of RES based power generating systems of nuclear power programme of the country, both on
also calls for enhancement of hydro-electric capacity, primary and secondary side (220/235/500/540/700 MWe).
from both conventional (large & small hydro plants) as well BHEL’s Steam Generators, Turbine & Generator sets comprise
as pumped storage generating stations, to meet the grid a majority of the PHWRs (Pressurized Heavy Water Reactors)
balancing and stabilization requirements necessitated by the forming the base of Indigenous Indian nuclear power
inherent variability of RES based power systems. Around 42 programme. BHEL offers equipment in the primary as well
GW (32%) of India's huge hydro power potential of 133 GW as secondary sides of a nuclear power plant, including Steam
(CEA identified Capacity as per Reassessment Study (2017- Generators, Reactor Headers, Turbine Generators Sets, MSRs,
23)) has been harnessed and 15 GW (11%) has been taken up Heat Exchangers, Condensers etc. and ‘EPC’ of TG Island.
for construction till date. Future potential of approx. 76 GW
(57%) is yet to be tapped. The Hydro policy approved by GOI In the hydro power segment, BHEL possesses the capability
in Mar’19 and Guidelines to Promote development of Pump for design, engineering and manufacturing of custom-made
Storage Projects (PSP) issued by Ministry of Power and New conventional hydro turbines of Kaplan types up to 100 MW,
& Renewable Energy are likely to give impetus to hydropower Francis and Pelton types up to 400 MW, custom-made
development in medium term. Further, over 30% of India’s Salient Pole Vertical Synchronous Hydro Generator up to 400
hydropower plants have completed 30 - 35 years, providing MW, Bulb Generator up to 10 MW and Horizontal Generator
substantial potential for Renovation & Modernization (R&M) up to 20 MW along with matching Static Excitation System/
for life extension and performance & efficiency upgrades. Brushless Excitation Systems, Reversible Pump-Turbines for
Your company is strategically placed to address these Pump Storage Plants up to 250 MW, High Capacity Pumps &
upcoming opportunities. Motors for Lift Irrigation Schemes (LIS) up to 200 MW, Fixed
Speed Generator-Motors for Pump Storage Plants up to 300
Nuclear power will form an essential part of country’s overall MW, Mini/ Micro and small hydro power plants up to 25 MW
power mix as it is globally accepted as a clean fuel technology.

rating, Butterfly, Spherical Valves and Auxiliaries for Hydro 2x660 MW EPC order of NTPC Talcher thermal power plant,
Stations, Microprocessor-based Digital Governing system for 850 MW MEIL Ratle hydropower project and 230 MW Lower
all types of Hydro Power plants, Plant Layout & Mechanical Sileru hydropower project for supply of turbines, generators
BOPs, Renovation, Modernization and uprating of Hydro and other auxiliaries, in addition to prominent orders for Heat
Annual Review
power plants and Balance of Plant & System Integration. Rate (Efficiency) Improvement & Life Extension of LMZ Steam
Turbines of GSECL Ukai TPS Unit#3 (200 MW) & Unit#5 (210
In the emission control equipment business, BHEL offers
MW), R&M project and HMI upgradation rate-contract in
customized equipment for controlling emissions from
NTPC projects.
thermal power plants, and has the capability to provide
retrofit solutions of Electro Static Precipitator (ESP), Flue BHEL has maintained its market leadership in the Indian
Gas Desulphurization (FGD), and NOx control equipment & thermal power industry by winning EPC order for 2x660 MW
furnace modification solutions. NTPC Talcher Thermal Power Plant (the first EPC order in the
country after a span of three years). The company’s efforts
The company has proven expertise in plant performance
towards revival of slow moving orders/ orders under hold
improvement through renovation, modernization and
Corporate Profile
have also borne fruit with the revival of DVC Raghunathpur
uprating of a variety of power plant equipment, besides
TG order.
specialized know-how of residual life assessment, diagnostics
and life extension of plants. Retrofit packages for ESP and C&I In the hydro business, BHEL has garnered orders of around
with state-of-the-art technologies are also being offered by 1,000 MW, besides expanding customer portfolio.
BHEL.
BHEL has taken various steps for improving its competitiveness
With the large scale integration of renewables in the grid, in the spares and services and R&M business segment, and
flexible operation of thermal power plants is expected to be has been able to secure its highest ever orders of over ₹3,800
a key requirement to ensure grid stability. Recently BHEL has Crore in this business area. These short-cycle orders will give
indigenously developed and successfully demonstrated its boost to the cash flows as well as bottom line of the company,
Board's Report
Flexible operation capability for coal based thermal power in the next couple of years. BHEL has been registered as seller
projects, and is now well placed to capitalize on opportunities in GeM, which has helped in securing orders from the portal
in this domain. worth ₹419 Crore, during the year (against ₹104 Crore in FY
2021-22 and ₹12 Crore in FY 2020-21).
Achievements during the Year
In Spares & Services Business, BHEL has developed a number
Order Booking
of components/ subsystems in-house and has secured
In FY 2022-23, BHEL has secured orders for 2,400 MW in maiden orders for:
power sector, aggregating to ₹13,353 Crore (excl. taxes),
o Repair of HP Rotor and IP Rotor of non-BHEL sets
amidst intense competition and limited opportunities. This
includes the highest ever order booking for ₹3,800 Crore o Expert services for checking feasibility of co-firing of
(excl. taxes) in the Spares and Services Business. biomass pellets along with coal
Some of the significant orders booked in FY 2022-23 include o Monitoring of performance of boiler during trial co-
fig. 37 Additional Information

Notice
BHEL secured EPC order from NTPC for setting up 2x660 MW Talcher Thermal Power Project Stage-III

firing of biomass straw based torrified pellets
o Supply and E&C of Coal and Natural Gas Co-Firing along
with Gas Leak Detection, Fire Hydrant System and other
spares
o Ceramic lined Coal Nozzle Tips
o Implementation of split shaft design Generator Rotor
o Supply of E211 Trim Heater
Such orders showcase BHEL’s engineering capabilities, and
will be helpful in opening up newer avenues for engineering
services in the future.
BHEL has also taken various initiatives for securing business
opportunities through Long Term Spares Supply Agreement
(LTSSAs) and Long Term Service Agreement (LTSAs) and has 25
such agreements with various customers. These agreements
700 MW STPP executed by BHEL at Bellary, Karnataka for KPCL
coupled with BHEL’s initiative to stock fast moving spares
through advance manufacturing actions, has enabled the
company to provide shorter delivery times to customers BHEL maintained its lion’s share of 55% in the country’s total
as well as increase the overall basket of offerings thereby installed thermal capacity of utility scale power projects,
positively impacting the Spares & Services order book. along with 48% of nuclear power generation capacity
(secondary side) and 44% of hydro power generation capacity
Project Execution in the country by end of FY 2022-23. Overall at utility scale,
Since its inception in 1964, BHEL has supplied 463 coal based including thermal, nuclear and hydro segment, BHEL enjoys
utility sets, 424 hydro utility sets, 103 gas based utility sets and 53% share in total installed capacity of the country.
12 nuclear based utility sets in India upto FY 2022-23. Through
Performance of Equipment
its concerted efforts, BHEL achieved a capacity addition of
1,580 MW in FY 2022-23 in utility power projects, which is 100 During FY 2022-23, 60.6 % (716.54 BU) of the country’s total
% of India’s total commissioning during the year for Thermal, generation of 1,182.05 BUs from Coal & Lignite based utility
Hydro and Nuclear Sets. In addition to capacity addition, sets has been contributed by BHEL supplied sets (as against
synchronization has been achieved for projects having 59.4% in the previous year).
limited BHEL scope (viz. SG/ESP/PCP), which aggregate to
It is matter of great pride and testament of BHEL’s
1,460 MW. Also, commercial operation for Unit#1 of the
product quality that three subcritical plants of WBPDCL,
prestigious 2x660 MW Maitree Super Thermal Power Project,
commissioned by BHEL, have been ranked within the top 5
Bangladesh has been declared in December 2022—one of
out of 200 thermal power plants in India in terms of PLF based
the biggest coal-fired power plants in Bangladesh. BHEL has
productivity ranking by CEA. Out of these three subcritical
installed the Nation’s first thermal power plant fitted with Air
plants, Bakreshwar-2 (210 MW) achieved highest Plant Load
Cooled Condenser (ACC) at NTPC North Karanpura Super
Factor (PLF) of 92.38% across all sectors with Operational
Thermal Power Project Unit-1 in Jan’23, proving once again
Availability (OA) of 99.7%.
the engineering prowess of the company. This Unit with
ACC has 1/3rd water footprint as compared to typical unit BHEL supplied Singrauli-1 (200 MW), synchronized on 14 Feb
with Water Cooled Condenser (WCC). Additionally, BHEL 1982, has successfully completed 41 years of operation with
successfully demonstrated the flexible-operations at 1x600 average PLF of more than 87% since inception. BHEL supplied
MW Adani Raigarh thermal power plant and further bagged three subcritical units (200 MW) which are more than 39
orders for flexible operations from WBPDCL and other years old achieved PLF of more than 95% in which Korba-3
utilities in FY 2022-23. STPS (200 MW) has achieved PLF 97.7% and OA of 98.2%.
Three BHEL supplied thermal sets clocked uninterrupted
In the supercritical thermal power segment, BHEL has
operation for more than 365 days, viz., Talcher-4 TPP (466
commissioned 30 sets of supercritical Steam Generators
days), Koderma-1 TPP (394 days) and Trombay-8 TPP (385
(SGs) and 23 sets of supercritical Turbine Generators (TGs)
days), demonstrating remarkable performance of BHEL
till March 31, 2023. Achieving a major project execution
supplied sets.
milestone, BHEL dispatched its 44th Nuclear Steam Generator
for Gorakhpur Atomic Power Project, thereby further In Nuclear Segment, BHEL supplied two nuclear sets clocked
consolidating its position in the Nuclear Power segment. uninterrupted operation for more than 365 days in Kaiga-1
(503 days) and RAPS-3 (407 days) and six BHEL supplied
Recent focus on resolving long standing customer issues has
Nuclear sets achieved PLF of more than 90% (Narora U#1&2,
started bearing fruits and a number of issues are reaching
Kaiga U#2 and Kakrapara U#1&2).
closure, which will assist in release of bank guarantees as well
as payments linked to such milestones. Power plants with BHEL supplied equipment continue to

exhibit above par performance in respect of high OA & PLF,
and low outages, and are testimonial to our robust designs
and high quality standards.
Performance Guarantee Tests:
Annual Review
During the year, focused efforts towards project closure have
paid rich dividends to BHEL in completion of Performance
Guarantee (PG) Tests & resolution of long pending issues:
o PG tests of total 69 packages (Power Sector: 52 (incl.
R&M) sets, Industry Sector: 17)
o PG Tests for complete main plant package (Turbine,
Boiler, ESP & Mills as applicable) were completed for 13
Units (including R&M).
Corporate Profile
Korba-3 STPS (200 MW) equipped with BHEL-supplied sets
achieved PLF of 97.7% and OA of 98.2%
o Boiler & Turbine PG test of NTPC Barh Unit 5 and Boiler
PG test of NPGCL Nabinagar 1 successfully completed & Renovation & Modernization (R&M)
approved after boiler modifications
During the year, BHEL completed Renovation & Modernization
Installed Capacity - Utility* of various projects for ESPs, De-NOx System (Combustion
Modification), C&I Pkg, BTG R&M, Boiler Duct Replacement
3,13,567 MW (March 31, 2023) and implementation of Flexibilisation solution.
Acknowledgements & Recognition of Excellence
Board's Report
BHEL’s efforts for providing higher value to customers through
timely project completion, improvement in equipment
performance and Service After Sales (SAS) support have been
appreciated by various customers and other agencies:
Customer Appreciated BHEL for

• Individual team members received
appreciation for Boiler Modification
Works of Unit-1 of NSTPS within
*Includes Thermal, Nuclear & Hydro; Excludes Solar, Wind and
stipulated time.
NTPC and
Bio-Power; Based on capacity at the time of installation its JVs/ • Successful trial operation & COD of
Subsidiaries Unit-3 boiler & ESP of NPGC (MW)
o All main plant Pkg. PG Tests of New Neyveli U #1 & U
#2 completed. Notably, these are the country’s highest • Overhauling of Unit-2 of Bongaigaon.
rated lignite fired units with once-through tower type • Early completion of maintenance
boiler. works of Darlipalli 2X800 MW
• Completion of Shut down work
Generation - Utility (Coal & Lignite)
(Dismantling & Erection of service
1,182.05 BU (FY 2022-23) transformer and associated bus ducts)
of Unit-2 of Kahalgaon FGD & ESP R&M
• Successful completion of Boiler
hydrotest with zero leakage at
Udangudi site 2X660 MW
• Successful completion of Non
TANGEDCO Drainable Hydro test and RH Hydro
Notice
test along with pipe lines without any

leakage in North Chennai Stage-III
1X800 MW
• Rectification of defects in control valve
servo motor (RHS) of Unit-2 of North
Chennai Stage-II 2x600 MW

efforts in areas like enhancing EPC capabilities, offering
Customer Appreciated BHEL for
emission reduction solutions (FGD, SCR systems as well as
Complete overhauling of HPT Module AUSC technology based power plants). Increasing spares and
& Annual overhaul work of Unit-7 of services business including customized solutions for R&M
MAHAGENCO Chandrapur of BHEL and non-BHEL sets, and competency building for
upcoming areas like coal to chemicals and carbon capture &
COH work done in U#1 DSPM Korba site its utilization and sequestration technologies, are also focus
areas for the company.
BHEL has taken proactive steps for increase in spares and
CSPGCL services business through long term spares supply and
service agreements with customers, coupled with advance
Record plant load factor in subcritical units
procurement & manufacturing action for faster supply
of Bakreshwar, Santaldih and Sagardighi. of spares, offering Flexiblisation solutions for BHEL and
non-BHEL sets for dealing with grid stability issues due
WBPDCL to fluctuations in renewable power generation, and in-
• Winning Project Safety Runner-up house manufacture of De-NOx (SCR) systems. BHEL has
Shield by prestigious customer on already successfully executed its first commercial order for
implementation of flexible operation and received further
occasion of 52st National Safety Day –
orders for the same. Further, BHEL is offering its experience
2023
in Renovation & Modernization and Life Extension of power
NPCIL • Successful mechanical testing along plants to developers to improve the performance of their
with effort and time savings for rework existing sets.
of erected pipes of TG piping of The Advanced Ultra Super Critical (AUSC) technology
Kakrapara site developed jointly by BHEL, NTPC and Indira Gandhi Centre
• Complete overhauling of Generator of for Atomic Research (IGCAR) has a potential to replace old
and higher pollution emitting sets, with highest efficiency and
Unit-11 of Obra site
lowest emissions thermal power plants. This will further aid in
• Services work at Unit-6 of Parichha the country’s efforts to achieve the Hon’ble Prime Minister’s
UPRVUNL TPS as well as Unit-3 of Anpara TPS Panchamrit goals.
As larger rating sets become relatively inefficient at partial/
lower/ flexible loads, retirement of older thermal power
plants of more than 50 GW (thermal power plants which will
be more than 30 years old by 2030) and replacing them with
Lower Rating Supercritical Sets is imperative, especially for
the range of 110/ 120/ 200 MW /210 MW / 250 MW sets that
Combustion modification (De-Nox) of
are completing their economic life of 30 years. Considering
Unit-6 of DVC MTPS the limited availability of land, the demand for these lower
DVC rating supercritical sets is expected to increase in future.
Successful restoration at Unit-1 Neyveli
Considering the utilities’ imperative to install emission
site. control equipment, your company’s efforts to indigenize
various components in this segment, is expected to give it
a competitive edge in the upcoming opportunities in this
NLCIL area. Your company aims to further support the country in
Implementation of Flexible Operation at reducing green-house emissions through its engineering
REGL, Raigarh (1x600 MW). services offerings for improving plant efficiencies as well as
other measures including solutions for biomass co-firing.
Adani Power Given India’s reserves of around 300 billion tonnes of coal and
the fact that international technologies are not available for
Future perspective high ash coals, the development of indigenous technology
The expected economic growth in the coming years, by BHEL for gasification of Indian high ash coal is a major step
aspirations of 1.4 billion people driving domestic consumption forward, and is expected to open up major business potential
as well as government’s push for manufacturing growth is for conversion of coal to chemicals. This technology can
expected to drive the energy demand in the near future. This also be used for greener electricity production through
coupled with requirement of energy security and affordability “Integrated Coal Gasification Combined Cycle” technology.
will drive addition of thermal based power in the near future. Your company is working to capitalize opportunities in these
Your company is working to capitalise on the same through areas in a time bound and focussed manner.

Nuclear power is likely to play an important role in catering to energy production. BHEL with an experience of over five
base loads in the coming decades. Your company continues decades in this sector, offers customized solutions of various
to remain the only Indian supplier for nuclear steam turbines types and sizes of hydro turbines and generators of upto 400
and generators as well as associated with the country’s three MW. The company has developed efficient runner profiles
Annual Review
stage nuclear programme. The orders received in FY 2021- and has reduced weights of hydro turbines, which is reflected
22, totalling to over ₹12,000 Crore are expected to give BHEL in recent successes in this segment. With its own NABL
a competitive edge during the next round of bidding for the accredited hydro lab for developing in-house hydro profiles,
fleet mode ordering of turbine island EPC packages. Your BHEL is the undisputed market leader in E&M packages for
company is also executing works at Kudankulam 2x1000 green field hydro projects and is a lead player for R&M of old
MW Units 3&4, being setup with Russian co-operation and hydro sets. Your company is the ideal partner of hydropower
further working with various stakeholders to indigenize and producers for achieving an efficient upgradation of turbine
increase its offerings in the sector. Small Modular Reactors profiles (for BHEL as well as non-BHEL make), increasing
are expected to be implemented in the medium-long term their lifespan as well as reliability. BHEL is a leading player
horizon and your company is working in this direction. in large size pump-motors required in Lift Irrigation Scheme
Corporate Profile
(LIS) projects.
Hydro power will play a key role for management of peak
power requirements due to the variability of renewable
Board's Report
Notice
Kaleshwaram LIS, Telangana - BHEL has designed and manufactured one of the largest single-stage centrifugal
pump-motor sets of the world

BHEL
Make Electric Utility Installations
Commissioned as on 31.03.2023
LEGEND
BHEL’s Electric Utility Installed Base

(Coal, Gas, Nuclear, Diesel & Hydro projects)
Type Sets MW
Coal 463 133590
Gas & CCP 103 7659
Diesel 23 199
Nuclear 12 3340
Hydro 424 21417
Total 1025 166205
MW scale Solar Installations in India
Projects MW
60 1085
ACHIEVING SUSTAINABILITY WITH
AIR COOLED CONDENSER
Annual Review
BHEL has achieved another milestone in sustainability by
commissioning the country's first utility-scale thermal power
plant equipped with an Air Cooled Condenser (ACC) instead of
a Water Cooled Condenser (WCC). The ACC will significantly
reduce water consumption, approximately by 63%, compared to
WCC. Along with emission control equipment, this is a major step
towards sustainability of thermal power plants.
Corporate Profile
BHEL has commissioned the first unit of 660 MW fitted with
ACC at 3x660 MW North Karanpura Super Thermal Power Plant
in Jharkhand. This plant with ACC will result in saving of 30,500
million litres of water annually when all the three units are
functioning - this saving equals the annual need of around 1.5
million people.
Board's Report
Notice

53
Profile &
Performance of
INDUSTRY
Business Segments SECTOR

1.7.2 Industry Sector transit projects in cities having a population of over two
million and light rail/ monorail solutions are being explored
Industry Sector offers a broad range of industrial systems
for smaller cities. All these, along with metro/ metrolite
and products for the major sectors of the Indian economy.
announcements in around 50 cities, are expected to offer
Industry Sector, comprising of market-focused groups,
Annual Review
multiple opportunities in the rail transportation segment in
offers comprehensive solutions for Transportation, Defence
the years to come.
& Aerospace, Transmission, Renewables, Oil & Gas, Captive
Power Plant, Industrial Products, Battery Energy Storage and BHEL views this as a major future business segment and is
e-Mobility. making all out efforts to upgrade technologies, manufacturing
as well as services network and processes to meet the future
During FY 2022-23, Industry Sector secured orders worth
needs of a modernized rail transport system.
₹9,537 Crore (excluding taxes) in a challenging business
environment. This is the highest order booking by Industry Current range of offerings
Sector in last 13 years and amounts to 40% in the yearly
• Rolling Stock
order booking during the year. In addition, an order for
Corporate Profile
manufacturing and maintenance of 80 sets of “Vande Bharat” o Electric locomotives up to 9000 HP
trainsets has been secured by BHEL led consortium in April
o Diesel-Electric locomotives up to 3000 HP
2023, which is valued at over ₹23,000 Crore excluding taxes
(BHEL share at around ₹13,500 Crore). o Semi High Speed (“Vande Bharat”) Trainset
o Track Machines
• Traction Machines
o Traction Motors
o Traction Alternators
Board's Report
• Traction Drive System & Controls
o Insulated-Gate Bipolar Transistor (IGBT) based
Traction and Auxiliary Converter
o Train Control Management System & Vehicle
Control Unit
o Hotel Load Converter and Composite Converter
o Control gear equipment for conventional rolling
stock
Hon’ble Union Minister of Heavy Industries, Dr. Mahendra o Regenerative braking system for conventional
Nath Pandey inspecting Indian naval vessel, INS Chennai, rolling stock
equipped with BHEL-manufactured SRGM • Traction Transformers
o Electric Loco Transformers
1.7.2.1 Transportation o EMU/Trainset Transformers
Being a pioneer in the rail transportation sector, BHEL Achievements during the year:
has played a key role in the growth journey of India’s rail
• In a major boost to the diversification efforts, BHEL
transportation segment for the last six decades and has
led consortium got favorably placed to secure order
been meeting Indian Railways’ rolling stock requirements by
for supply and maintenance of 80 nos. “Vande Bharat”
offering innovative solutions and “Made in India” systems &
Trainsets from Indian Railways. These trains are to
equipment.
be manufactured at ICF, Chennai by the consortium.
Govt. of India has envisaged an urgent need for modernization BHEL has achieved this success in the face of stiff
and generational change in India’s Rail Transportation to global competition from MNCs and consortium of
assure better safety, improved productivity & efficiency international players. Consequently, in April 2023, BHEL
led consortium secured this order worth ₹23,000 Crore
Notice
meeting growth aspirations of the country, and thereby

creating significant opportunities for the industry. As a (excluding taxes).
part of this endeavour, Indian Railways is projecting major
• Maiden order received for 3-Phase metro propulsion
requirements in the domains of MEMU, EMU & high speed/
from ICF, Chennai for Kolkata Metro (re-entry into metro
semi-high speed trainsets, conventional & high power
segment after 15 years).
locos, and signaling systems over the next 10 years. In the
urban mobility segment, states are pursuing mass rapid

WAG-9H electric locomotive for Indian Railways supplied by BHEL
• Maiden order received for 6 nos. of 700 HP Diesel Electric High Speed “Vande Bharat” Trainsets for passenger traffic are
Shunting Locomotive with Dual Driver Cabin from JSW being introduced by IR. Indian Railways has also planned to
Vijayanagar Metallics Works. Dual cab loco eases plant extend the “Vande Bharat” Trainset model to Urban Mobility
operation with advantages like faster operation and segment as “Vande Metro”.
better visibility thereby reducing overall process cycle
Leveraging its design, engineering & manufacturing
time and thus improving efficiency and availability.
experience, technological competence and pan India
• Order received for 22 nos. of 6000 HP Electric presence, BHEL is working to develop technology self-
Locomotives from Indian Railways. sufficiency and strengthen in-house capability for design &
manufacturing of advanced mechanical and electric systems
• Supplies against 75 nos. of 6000 HP WAG-9H Electric
for all types of rolling stock. Your company is also working
Locomotives order of Indian Railways completed ahead
with OEMs/ collaborators to address upcoming businesses,
of delivery schedule.
especially of high HP locos, Battery/ Hydrogen Fuel Powered
• 15 nos. MEMU/ EMUs fitted with BHEL’s 3-phase Locomotives, High Speed Rail and Signaling (TCAS), Metro/
propulsion electrics rolled out of RCF Kapurthala / ICF Metrolite, & Push-Pull locomotives.
Chennai.
The company aims to focus its energies on effective execution
• Supplies of 6 nos. WAG-9 Electric Locomotives of the “Vande Bharat” Project that will reaffirm its position as
completed against order received from NTPC for one of the major rolling stock player in the country. BHEL,
material handling operation at NTPC Lara site. with its latest technological advancements and R&D efforts,
is fully geared to cater to the growing needs of Indian rail
• Supplied first ever WAG-7 Regenerative Locomotive to
transportation sector.
Electric Loco Shed, Jhansi.
1.7.2.2 Transmission
Future perspective
As India’s power grid makes transition to greener energy
Indian Railways (IR) has launched National Rail Plan (NRP)
which is expected to constitute 50% of the power mix by
to create capacity and to increase Railways’ share in freight
2030, the country is expected to see substantive investments
traffic. New age rolling stock in the form of High Horse
in the transmission system. The complexity associated with
Power Electric locomotives for freight movement and Semi

building a reliable transmission network increases manifold
when the grid handles variable generation by solar and wind
power. The recent unveiling of detailed plan of ‘Transmission
System for integration of over 500 GW of RE capacity by
Annual Review
2030’ clearly affirms GoI’s intent to create the required
transmission infrastructure for evacuation of power from far-
off RE sources to load centers.
There is an urgent need for upgradation of the existing
transmission networks and addition of new Extra High Voltage
(EHV) systems & associated lines. Gas Insulated Substation
(GIS) projects shall continue to see robust demand due to
optimized land requirements and reduced O&M expenditures.
Apart from this, multiple HVDC projects are in various stages
Corporate Profile
of planning for power evacuation from far-flung generation
centers.
DC Hall of +800 kV, 6000 MW UHVDC link between
With the fast-changing market scenario and buoyant demand
the Western Region Grid (Raigarh, Chattisgarh) and the
outlook, BHEL has its presence across the board and offers
Southern Region Grid (Pugalur, Tamil Nadu) successfully
a wide spectrum of products and systems to cater for the
implemented by BHEL
varied need of Power Utilities. BHEL is well-poised to further
enhance its presence in the emerging areas like EHV GIS • Gas Insulated Switchgear (GIS) up to 420 kV
Substation, Digital Substation, HVDC projects, etc.
• Composite Insulators for upto 765 kV application
Current range of offerings
Board's Report
• Flexible AC Transmission System (FACTS) Solution:
• Turnkey transmission solutions including Extra High Fixed Series Compensation for 400 kV lines, Controlled
Voltage Substations (both Air Insulated Substation (AIS) Shunt Reactor (CSR) and Phase Shifting Transformer
& Gas Insulated Substation (GIS)) up to 765 kV and High (PST) for controlling and balancing power flow upto 400
Voltage Direct Current (HVDC) converter stations up to kV applications.
+/-800 kV on EPC basis
Achievements during the year
• Power Transformers up to 1200 kV & Shunt Reactors
upto 765 kV, Capacitive Voltage Transformers (CVT) up • Order for Substation package – 400/220 kV substation
at Mandsaur and Chhitorgarh.
to 1200 kV, Instrument Transformers (CT, PT) up to 400
kV, Traction Power Transformers, Dry Type Transformers, • Orders for 400 kV GIS substation, 400/220 kV GIS
Vacuum Switchgear, Capacitor Banks, Control & Substation and 400 kV AIS bays Extension
Protection equipment, HVDC Converter Transformers
• Orders for 55 nos. of 500 MVA, 765/400 kV Transformers
up to 800 kV, Thyristor Valves, etc.
Notice
765/400kV substation commissioned by BHEL at Raichur, Karnataka

• In addition, various other orders of ~ total 51 nos., 7706 Over the years, BHEL has upgraded and augmented its
MVA for 400 kV and 220 kV Transformers secured from facilities to cover a wide spectrum of design, engineering,
Central/ State Transmission Utilities. precision manufacturing, heavy forging, special purpose
• BHEL equipment enabled record power transmission welding and advanced CNC machining activities, which are
of 6,000 MW, over the ±800 kV, 6,000 MW Ultra High being utilized for manufacturing of Defence equipment and
Voltage Direct Current (UHVDC) link between the systems. Most of these complex, special purpose machines
Western Region Grid (Raigarh, Chhattisgarh) and the and equipment are one of their kind in the country and are
Southern Region Grid (Pugalur, Tamil Nadu) comparable to the best available in the world. BHEL has
also acquired certifications such as Approval of Firms and its
Future perspective Quality Management System (AFQMS), AS9100D & CEMILAC,
Self-Certification of Spares under DGQA scheme etc.,
The power transmission segment is expected to see a
demonstrating the highest quality standards of the goods and
considerable growth due to Power Generation targets of
services offered.
Govt. of India to add 500 GW of RE power by year 2030. With
a greater focus on the requirement of Power evacuation BHEL also offers state-of-the-art system design and
and transmission network (HVAC & HVDC) matching with integration, structural design, engineering analysis like Finite
the growth of Power generation, a total of 2.17 Lakh MVA element, Computational Fluid Dynamics, 3D modelling,
substation capacity is expected to be added by FY 2026-27 shock and vibration studies capabilities for a vast range of
and total 4.33 Lakh MVA by 2030 for integration of additional strategic equipment.
wind and solar capacity. BHEL has a strong foot print in India’s
The company is leveraging these capabilities to meet the
Transmission landscape, with capabilities in both projects
requirements of the defence sector and is well placed to
as well as products, and is well placed to capitalize on the
make a significant contribution in this field.
emerging opportunities.
1.7.2.3 Defence and Aerospace Current range of offerings and capabilities
Ministry of Defence (MoD) is focusing on “Make in India” • Super Rapid Gun Mount (SRGM) / Upgraded SRGM,
under “Aatmanirbhar Bharat Abhiyan” to achieve self-reliance including life time product support
in Defence Sector and promoting domestic manufacturing. • IPMS (Integrated Platform Management System)
Defence spending and investments are expected to increase
as India fast-tracks its military modernization and upgradation, • Compact Heat Exchangers & Pump modules for
especially considering the current geopolitical developments. aerospace applications
MoD has released positive lists for indigenisation of imported • Air Cycle Based Liquid Cooling System (LCS) for
Defence equipment by domestic industry in a time bound aerospace applications.
manner. This reflects the growing confidence of the
Government on the capabilities of domestic industry. • Precision machining of Titanium based Propellant Tank
parts for Satellites
Super Rapid Gun Mount (SRGM) being manufacture at BHEL’s Haridwar plant

• Hot forming of Titanium Shell/Domes for space The company is now offering upgraded state-of-the-art
applications SRGM and is also augmenting its capacities in line with the
requirement of Indian Navy. BHEL has the proven expertise
• Space Grade Solar Panels & Batteries for Satellites
in permanent magnet motor technology and is fully geared
Annual Review
• Permanent Magnet based motors, generators and up for the indigenous design and development of propulsion
frequency Converters systems for vessel and warships. BHEL is also offering solutions
in Renovation & Modernization and Life Extension services
• Static Bi-directional Converters
for various equipment to Indian Navy. BHEL is one of the few
• Rotary Frequency Converters select firms in the world having the capability to design and
manufacture compact heat exchangers and pump modules
• Rotary Main Motor Generators
for military aircraft/ helicopters and is currently developing
• Turbo Alternators and Turbo Alternator Turbines variety of compact heat exchangers and pump modules. The
company is also working in close coordination for a diverse
• Turbines, Condensers, Heat Exchangers & Valves for range of equipment and services with customers such as
Corporate Profile
defence applications CASDIC, HAL, ISRO, ADA, etc. BHEL is closely working with
• Design capabilities for a vast range of equipment for ISRO and its centres for business enhancement in aerospace
strategic requirements including heat exchangers, sector and efforts are being made to enhance product
control systems, Turbines, Permanent Magnet Motor, portfolio in Launch vehicles, Satellites/ Payloads etc.
Frequency Converters, Turbo Alternators, Diesel In the current international scenario, BHEL with its wide
Alternators, Condensers, Pumps with Drive Turbines, range of design, engineering & manufacturing capabilities is
etc. well placed to play a much wider role in indigenization of
Achievements during the year critical national Defence requirement.
Board's Report
• Achieved highest ever Order Booking in Defence and 1.7.2.4 Captive Power & Process Plant
Aerospace segment. Major orders include Upgraded BHEL has been serving this business for more than four
SRGM for Indian Navy & Spares for SRGM, Water Front decades, and most of the metal & mining industry, process
Support, IPMS and spares for Indigenous Aircraft Carrier industries and petro-chemicals industry in India utilize
(IAC) for Cochin Shipyard Ltd (CSL) BHEL supplied equipment for captive power generation
• Secured first ever order for design and development of and other processes. Historically, in India, these energy
Li-ion battery for fighter aircraft. With this order, BHEL intensive industries have been relying on captive power
will be the sole Indian supplier of Li-ion batteries for next plant for reliable power, and use of exhaust gases for power
generation aircraft generation & process steam requirements. The present geo-
political scenario has led to huge increase in energy cost for
• Secured order for design and development of Naval European Nations making manufacturing expensive. This
Alternator scenario is expected to catalyse growth of Indian industry
• Successfully designed, manufactured, and delivered producing highly energy intensive commodities like Steel
First Indigenous Rotary Main Motor Generator (RMMG) and Aluminium. In view of this, BHEL’s wide portfolio of in-
house manufactured Captive Power Generating Equipment
• BHEL has successfully designed, developed and viz. Boilers, Steam Turbines and Gas Turbines is expected to
supplied Air Cycle Based Liquid Cooling System (LCS) continue to be in demand.
for aerospace applications.
With regard to Oil & Gas segment, BHEL is the only Indian
Future perspective OEM having 230 Gas Turbines successfully operating in the
country. Planned capacity expansion of Indian refineries
BHEL has a five-decade track record of supporting the
would catalyse the further demand for Gas Turbines. With
country’s defence forces which began with the indigenization
the execution of the ongoing Sulphur Recovery Unit package
of main turbines for the Leander class frigates in the 1970s.
at Paradip, Odisha, BHEL is well placed to offer process
Since then, significant progress and contribution has been
packages and solutions for the Downstream Oil & Gas Sector.
made by BHEL in design and development of a wide range
of specialized equipment and weapon systems for Defence Current range of offerings
applications, including the SRGM for warships, wide variety
of equipment for the strategic program, Heat Exchangers • Standalone Steam Turbine Generator (STG) sets
for Fighter Aircraft, Integrated Platform Management System
Notice
• Boiler Turbine Generator (BTG) package, Pulverized

for naval warships including for the INS Vikrant- Indigenous Fuel (PF), Circulating Fluidized Bed Combustion (CFBC),
Aircraft Carrier, Missile Launchers, Pump Modules for Atmospheric Fluidized Bed Combustion (AFBC), Utility
aerospace application, Gun Control System, Antenna Control Boiler(UB) /gas fired boilers
System, amongst others.
• Gas Turbine based Open, Cogeneration and Combined
Cycle Captive Power Plants

• Process packages and equipment of Downstream Oil next 4-5 years. Expansion projects by several refiners and
and Gas Sector (DSOG) petrochem customers are also in pipeline.
Achievements during the year Business opportunities for Industrial Products such as
centrifugal compressors, fired heaters, heat exchangers,
• Received orders for seven (07) no. STG (above 40 MW) valves, high tonnage columns & vessels etc. are expected in
from existing and new customers these forthcoming projects.
• Technology License Agreement signed with Sumitomo
Offerings
SHI FW, Finland for CFBC Boilers
• Oil Rigs - A variety of on-shore drilling rigs with AC-
VFD (Variable Frequency Drive) and AC-SCR (Silicon-
Controlled Rectifier) technology for drilling up to depths
of 9,000 meters (3000 HP), work-over rigs for servicing
up to depths of 6,100 meters (650 HP).
• Valves - Well heads and X-mas Trees up to 15,000 psi,
Mud Line Suspension System, Choke and Kill manifold,
Coalbed methane (CBM) Wellheads, DSPM H- Manifold
Assembly, Mud valves, Gate Valve, Globe Valves etc.
• Centrifugal Compressors - Multi-stage Centrifugal
Compressors as per API 617 Chapter- 1 & 2 up to
3,00,000 m3/hr. for application in Fertilizers, Refineries,
BHEL enters into Technology License Agreement with Sumitomo

SHI FW, Finland for CFBC Boilers
Future perspective
Capex in the Infrastructure Sector in India is under significant
augmentation. Further, supply disruption of steel from China
and Russia-Ukraine war has led to a sudden surge in demand
from domestic steel producers. At present, domestic installed
capacity of steel is around 154 MT and in line with the vision
to have an installed capacity of 300 MT capacity by 2030,
secondary steel industries as well as integrated steel plants
are likely to come up with expansion plans, which is likely to
translate into demand for captive power.
In line with GoI’s plan to enhance India’s total oil refining
capacity to 450 MMTPA by 2030, petrochemical complex,
brownfield and greenfield refinery projects are expected to
come up in next 5-6 years.
BHEL with its decades of experience as well as focus on
diversification from non-coal areas, is fully geared to
capitalize on these upcoming opportunities.
1.7.2.5 Industrial Products (including Oil & Gas and

Electrical Machines)
BHEL has been serving this sector for more than five decades
and most of the refineries & petro-chemicals industries in
India are equipped with BHEL supplied static and rotating
equipment.
Downstream Oil & Gas in India is poised for massive
expansion from 249 MMTPA to 450 MMTPA by 2030. More
than ₹2 lakh crore of investment has been announced in Conventional X-Mas Tree Valve manufactured by BHEL
downstream oil & gas segment for implementation in the

Petro-chemicals, Pipelines, Gas processing, Steel engineering and manufacturing capabilities. MHI under
industries etc. FAME-II scheme is sanctioning EV Charging Stations for cities
across States/UTs and along Expressways/ Highways. Further
• Mechanical Packages - Fired Heaters, Columns,
Oil PSUs like BPCL/ HPCL/ IOCL have plans to setup 22,000
Reactors, Pressure Vessels, Heat Exchangers and Purge
Annual Review
EV charging stations at their retail outlets. MHI have allocated
Gas Recovery Units.
7,432 Public Fast EV Charging Stations to Oil PSU’s (IOCL,
• Electrical Machines- AC squirrel cage, slip ring, BPCL & HPCL) with total grant of ₹800 Crore under FAME-II
synchronous motors for safe and hazardous area scheme.
applications, variable speed motors, industrial
alternators, special purpose machines and LT VFD. Offerings
• Supply of EV Chargers (with/ without solar charging
Achievements during the year
facility) and associated electrical system
• Orders for 9 nos. Centrifugal Compressors received
• EPC solution for setting up of EV Charging Stations with
including largest Heat Pump Compressor Order
Corporate Profile
upstream electrical system
from IOCL Panipat and largest VFD fed Motor driven
Compressor from GAIL Achievements during the year
• Order for largest heat duty (26.88 MMKCal/Hr) Fired
• Order for supply, I&C for 70 Nos 50 kW EV chargers
Heater from GAIL
from BPCL. This is the first time BHEL make EV charger
• Achieved highest ever order booking for legacy products shall be supplied.
of HPVP Vizag since BHEL’s taking over the plant in 2013
• Prototype for in-house developed 50 kW DC fast EV
• In line with India’s “AatmaNirbhar Bharat Mission”, BHEL
charger has been accepted by BPCL.
took the onus of developing three models of Sucker
Rod Pumps—an artificial oil gathering lift system used by
Board's Report
Future perspective
upstream oil & gas companies for ageing wells—which
were hitherto imported. The company has successfully With its commitment to the nation’s e-Mobility mission, BHEL
completed the field trial and is now fully capable to has taken up several in-house development initiatives. With
supply indigenously developed sucker rod pumps. successful development and certification of 122 kW charger
and certification of 50 kW charger being taken up, BHEL is
Future perspective geared up to address the requirements of EV charging stations
The future in this business domain looks promising for BHEL by offering EPC solutions in the segment. Also, initiatives to
with its product and system offerings in various sectors viz. develop and manufacture other ratings of EV chargers are
Oil & Gas (Downstream & Upstream), Steel, Fertilizers and being undertaken.
Petrochemicals.
Battery Energy Storage Systems (BESS)
BHEL has also taken several measures for indigenisation of
In the Union Budget in February 2023, GoI has announced
items under “Aatmanirbhar Bharat Mission” of GoI which will
viability gap funding for projects of 4000 MWh of BESS
help increase its offerings. The market for BHEL developed
capacity. Further, Production Linked Incentive (PLI) scheme
products like Surface Unit of Sucker Rod Pump (SRP), 15000
on Stationary Storage Battery Cells (SSBC) for grid application
Psi Wellheads, X-Mas Tree valves, 5000 Psi Mud Pumps and
is expected in due course of time.
1150 HP AC Motor for Oil Rig Applications is likely to increase
in line with the capex being done in upstream oil & gas sector. Offerings
In Steel Sector, BHEL has started manufacturing BOF • Complete EPC solutions for BESS
Converters for Steel making and is ready to offer Axial Blowers
& Top Recovery Turbines. Future perspective
1.7.2.6 New Business Areas and Energy Storage Solutions BHEL is actively pursuing Battery Energy Storage business
opportunities in EPC Mode.
Electric Mobility
Under the National Electric Mobility Mission Plan (NEMMP), Medical Oxygen Generation Plants
Ministry of Heavy Industries (MHI) launched Faster Adoption BHEL has manufactured and supplied 16 nos. of Pressure
and Manufacturing of Electric and Hybrid Vehicles (FAME) Vacuum Swing adsorption (PVSA) based Oxygen Generation
scheme in India. After the success of FAME-I scheme, MHI Plants (500 LPM & 1000 LPM) based on CSIR technology.
Notice
notified FAME-II scheme which has now been extended to Majority of customers are from healthcare industry.
March 31, 2024.
The 4W-EV penetration is expected to increase and will 1.7.2.7 Renewable Energy
necessarily require a pan India network for EV chargers which India’s recently updated NDC (Nationally Determined
your company is well placed to address with its own design, Contribution) suggests for about 50% cumulative electric

power installed capacity from non-fossil fuel-based energy • BHEL received the prestigious Award in the category
resources by 2030. The majority of this is expected to be ‘Leading EPC - Solar’ at 6th edition of Renewable Energy
solar capacities. India Awards for its 100 MW Floating Solar PV Plant at
Ramagundam, Telangana
Current range of offerings
• BHEL’s designed and developed 1.7 MW Solar project
• EPC solutions from concept to commissioning of Solar at Bina, M.P. for Indian Railways has received the UIC
PV Power Plants, with or without BESS (Battery Energy International Sustainable Railway Award 2022 under the
Storage System) category of ‘Best use of Zero Carbon Technology’. The
• Ground mounted, Roof top, Canal top and Floating solar plant is first of its kind in the world as it feeds solar power
power plants directly to Railway Traction System.
• Solar Inverters for utility as well as Railway traction
Future perspective
applications
• Loose Multi Crystalline Solar PV Cells meeting Domestic India’s recently updated NDC is expected to give impetus to
Content Requirement (DCR) expansion of solar capacities. In order to achieve the target,
MNRE (Ministry of New and Renewable Energy) has issued a
• Mono-PERC Solar PV Modules (up to 400 Wp)
roadmap wherein the Government has decided to invite bids
Achievements during the year for 50 GW of RE (Renewable Energy) Capacity annually for
5 years from FY 2023-24 to FY 2027-28. As an established
• With the successful commissioning of total 152 MW of
EPC player in domestic solar energy market with a portfolio
Floating Solar Plants, BHEL has emerged as the leading
of 1.2 GW, indigenous manufacturing assets of solar PV cells
player in Floating Solar segment in India.
(105 MW/annum) and PV modules (226 MW/annum) and
• Hon’ble Prime Minister of India dedicated NTPC imposition of Basic Custom Duty on imported Solar PV cells
Ramagundam, Telangana (100 MW), the largest floating & modules, BHEL is selectively addressing the upcoming
solar power plant in the country and NTPC Kayamkulam opportunities.
(22 MW) to the nation in July 2022.
Also, BHEL is working to capitalize on its experience and
• BHEL commissioned and synchronized 95 MW of Solar engineering & execution strength in Floating Solar Power
capacity in the FY 2022-23. Plants to target various opportunities in the field of Floating
Solar.
100 MW Solar PV Plant at NTPC, Ramagundam, Telangana, the largest floating solar power plant in the country, commissioned by BHEL

‘AATMANIRBHARTA’
Through Indigenous Technology of
Coal Gasification
Annual Review
The process of coal gasification opens up diverse demonstration plant. The conversion of high ash Indian
pathways for energy generation as well as high-end coal to methanol through the gasification route and
chemical production. BHEL has been a pioneer in utilizing an amine based process is the first of its kind
gasifying high-ash Indian coals since 1985. It has technology demonstration in India. The project received
led to world's first proven Pressurized Fluidized Bed funding from Department of Science and Technology
Corporate Profile
Gasification (PFBG) technology for gasification of with the support of NITI Aayog.
high-ash Indian coals. BHEL has further completed
This indigenous technology fits perfectly with Hon’ble
design and engineering of gasifier for 2,000 TPD
Prime Minister's vision for Coal Gasification, which
Coal to Ammonium Nitrate commercial scale plant.
is being implemented through the National Coal
Showcasing PFBG technology, BHEL has Gasification Mission that aims to achieve gasification of
successfully demonstrated India’s first indigenously 100 Million Metric Tonnes of Coal by 2030.
developed 0.25 TPD methanol generation
Board's Report
Notice

63
Profile &
Performance of
INTERNATIONAL
Business Segments OPERATIONS

1.7.3 International Operations Recognition
Overview BHEL efforts as an exporter have been appreciated and it has
been awarded the 9th Governance Now PSU award in the
BHEL has been a reliable designer, manufacturer and supplier
field of “Increase in Geo-Strategic Reach”.
Annual Review
of world class power generation, transmission, and industrial
equipment across the globe. BHEL offers the flexibility
Future perspective
to work as an EPC contractor, and also on various other
business partnership models like Supply and Supervision, Globally, conventional energy sector is dealing with
Supply only, Sub-Contractor, Consortium partner, Contract energy transition and funding issues. The rising debt
Manufacturer etc. Our international references span 88 level of developing/ African countries, limit the ability of
countries across all the six inhabited continents. BHEL’s in- fiscal policymakers to respond to new challenges. The
house design team is well-versed with international design ongoing geo-political tensions, impact on major European
standards and our solutions are adaptable to the customer economies due to Ukraine-Russia war, continued disruption
requirements. We have so far supplied and installed 12 GW of in supply chains are hampering smooth recovery of the world
power-plant equipment internationally and another 5 GW is
Corporate Profile
economy, post the pandemic impact in last two years.
under installation.
BHEL is focusing on leveraging its world-class design,
Presently, major projects under execution in the overseas
engineering and manufacturing capabilities for supplying
market include (2 x 660 MW) Maitree thermal power project
wide range of customized products & turnkey solutions,
in Bangladesh, (6 x 200 MW) Punatsangchhu-I and (6 x 170
especially in the energy, oil & gas sectors as well as
MW) Punatsangchhu-II hydro projects in Bhutan; 8 MW Solar
PV project, Mauritius; (4 x 225 MW) Arun-3 hydro project and positioning itself as a viable alternative to the traditional
(2 x 20) MW Rahughat hydro project in Nepal; 26 MW Calabar manufacturing destinations. Our focus on neighbouring,
Gas based power project & 1.3 MW Kaduna Solar Mini grid Middle East & African countries has enabled BHEL to be
projects in Nigeria; (2 x 200 MW) Tishreen Thermal project in favourably placed in some of the upcoming projects. Amidst
Board's Report
Syria and a host of orders for spares & services. This includes the slowdown in global capex, your company is also focusing
the largest ever order for spares & services for the 125 MW on the opportunities for spares arising from the life extension
Sendou Thermal Power Project, Senegal. of existing capacities. The geopolitical situation has created
multiple opportunities for supplies emerging from European
Though the world is towards recovery post the pandemic,
and Russian states. Such geography specific strategies have
the Ukraine-Russia conflict is impeding the desired recovery
enabled BHEL to increase its international business which
levels globally by disrupting supply chains. BHEL is working
is further likely to increase multi-fold in the coming years.
to capitalize on its design, engineering & manufacturing
capabilities in the context of opportunities arising in this In nutshell, BHEL has adopted three pronged approach to
boost its export business;
scenario. The company has also participated in the world’s
largest industrial fair at Hannover, Germany, after a gap of 1. Export of Products like motors, generators, transformers etc;
seven years and showcased its capabilities for generation of 2. Increase presence in existing territories like neighbouring
interest from international customers. countries, Africa, Middle East; 3. Enhance geographical reach
into markets like Europe & Latin America.
Salient achievements in overseas order booking & project
execution
• Single largest ever unit commissioned overseas - BHEL
has proven its engineering and manufacturing prowess
by synchronization of Unit-1 for the prestigious 2 x 660
MW Maitree STPP, Bangladesh.
The project was jointly unveiled by Hon’ble Prime
Minister of India Mr. Narendra Modi and Hon’ble Prime
Minister of Bangladesh Ms. Sheikh Hasina.
• Rate contract with OQ Oman for the supply of Gas
Turbine capital spares for a period of 5 years for BHEL
supplied COGEN Power Plant.
• Order for replacement & restoration of 84 MW Generator
Unit-4 of 336 MW Chhukha Hydropower Plant, Bhutan.
Notice
• Orders for motors, transformers, etc., as well as 58

orders received from 16 countries for after sales support
from neighboring countries, African, South East Asian,
Latin American countries.
• Secured largest ever order in the overseas after sales
336 Megawatt (MW) Chhukha Hydro Electric Project (HEP) in
segment from Senegal Bhutan commissioned by BHEL

BHEL Global Footprints
This graphical representation does not purport to be the physical map of the world

1.8 Comprehensive Analysis of Financial Performance commodities impacting timely availability of input materials
and cost of procurements. The Global supply chain
1.8.1 BHEL Standalone constraints (like local lockdowns and port congestion at
A. Financial Results Shanghai port-China) affected timely availability of critical
Annual Review
1. Total Income raw material for shop production. Further, the shortage of
semiconductors hindered the manufacturing of propulsion
(₹ Crore) systems for Indian Railways during the year.
Particulars 2022-23 2021-22 While the slowdown in the global economy and the
geopolitical disturbances have had some impact on business
Revenue from contract with 22136 20153
in the recent past, the expected large investments in the
customers infrastructure sector will provide major growth opportunities
Other operational Income 1229 1058 for the company. Demand for new thermal power plants
Other Income 515 368 has picked up with new tenders on the anvil. Similarly, the
Corporate Profile
company has been focussing on improving order booking in
Total Income 23880 21579 spares and services business, which resulted in BHEL booking
Total income in FY 2022-23 has increased by about 11% as its highest ever orders of over ₹3,800 Crore in this area. Such
compared to previous financial year. Item wise explanation short-duration orders are also likely to assist in improving the
for each element of total income is given below: bottom line of the company in the short to medium term.
1.1. Revenue from contracts with customers 1.2. Other operational income
(₹ Crore) (₹ Crore)
Particulars 2022-23 2021-22 Particulars 2022-23 2021-22
Board's Report
Revenue from construction and 16083 14107
Other operational income 1229 1058
project related activity
Sale of Product & Other Services 6053 6046 The Company has achieved its highest level of other
operational income of ₹1,229 Crore during the year.
Total Revenue from contract with 22136 20153
customers (as per Ind AS 115) 1.3. Other income
The overall growth in Revenue in the FY 2022-23 is about (₹ Crore)
Particulars 2022-23 2021-22
Interest income 421 303
Dividend on investment in joint 26 30
venture – BGGTS
Profit on sale of units of Mutual Fund 68 35
/ items of PPE, Govt. grants & others
Total 515 368
The major component of Other Income during FY 2022-
23 has been interest income, which has been bolstered by
10% as compared to previous year, with Revenue of ₹22,136 income tax refunds of earlier years, amounting to ₹106 Crore.
Crore vis-à-vis ₹20,153 Crore for the previous year. The Treasury income during FY 2022-23 has also been higher as
Company continued its focus on project execution, with compared to FY 2021-22, due to higher rate of Interest on
revenue from construction & project related activity up by Fixed Deposits & other investments as compared to previous
14% over the previous year. These achievements are on the year.
back of the company’s efforts to change its ideology towards
Further, with the completion of disinvestment of NINL to Tata
‘Project Centric’ operations.
Steel Long Products Ltd., BHEL has made a gain of more than
Also, the growth in topline has been achieved despite ₹25 Cr (original investment of ₹5 Cr made in 1998 was valued
Notice
several impediments like abnormal volatility in price of the at NIL).

2. Expenses Strict control mechanism with respect to other expenses
2.1. Material consumption, erection and engineering such as manufacturing, administrative and sales & distribution
expenses (S&D) expenses has resulted in such expenditure (as %
of revenue) restricted at even lower levels than FY 2021-
(₹ Crore) 22, thereby adding to the bottom line. Higher fuel prices
have been a matter of concern during the year, which has
Particulars 2022-23 2021-22 negatively impacted the operating margins.
Cost of Raw Materials consumed 5875 5062
Purchases of Bought Out Items 4658 4142
Civil, erection & engineering 5421 4793
expenses
Sub total 15954 13997
(Accretion)/Decretion in (57) 525
inventories of finished goods,
work in progress and scrap
Total 15897 14522
Material cost % of revenue 72% 72%
Metal prices in the past year have seen some corrections, Details of Provisions (net) as under:
but are still at elevated levels. The continuing disturbances (₹ Crore)
on the Global front have been further impacting the prices
of various commodities. Additional cost was incurred due to Particulars 2022-23 2021-22
breaks/ deadlocks arising out of COVID related lockdowns
which has also impacted the bottom-line of the company. Doubtful debts (incl. ECL), liquidated (427) (1502)
damages, loans, advances & deposits
Over the past couple of years, the company has been focusing
on multiple endeavours like cost optimizations in design, and others
indigenization etc., and is also focusing on orders in areas Bad debts, LD, Investment & losses 148 350
having higher gross margins. This has helped the company written off
maintain the material cost at 72%, which is equivalent to last
year. Contractual obligations (568) (374)
Total (847) (1526)
2.2. Employee benefits expenses
The company continues to assign utmost priority to improve
(₹ Crore) the quality of its assets in the balance sheet. Focused
approach has resulted in resolution of several issues, which
has ensured that there is net withdrawal of provisions,
Employee benefits expenses 5701 5517 contributing positively to the bottom-line of the company.
No. of Employees 29536 30758
3. Finance costs
The overall employee benefit expenses are only marginally
higher (up 3%) from the previous year due to higher DA (₹ Crore)
rates/ HRA etc. However, there is strict control on the
variable expenses. Further, there has also been reduction in Particulars 2022-23 2021-22
manpower by ~4% at the end of FY 2022-23 as compared to Discount & other expenses on 51 139
the FY 2021-22. commercial papers
2.3. Other expenses Interest expense 309 60
(₹ Crore) Un- winding of provisions 161 156

Total 521 355
There has been an increase in Finance Cost during FY 2022-
a) Other expenses of Mfg., Admn., 23 as compared to the FY 2021-22. Due to higher inflation
1466 1355
Selling & Distribution globally, the central banks have been raising interest rates
b) Power & Fuel 488 415 across the board. The higher interest rates on borrowings and
also comparatively higher levels of borrowings have led to
c) Provisions (net) (847) (1526)
increase in overall finance cost. There has also been increase
d) Exchange Rate Variations (460) (82) in borrowing, which at the current year end has been ₹5,385
Total 647 162 Crore as compared to ₹4,745 Crore as on 31st March 2022.

4. Depreciation & amortization expenses Profit After Tax stands at ₹448 Crore (FY 2021-22 ₹410 Crore),
which is also aided by the efforts made in the taxation area as
(₹ Crore)
well as net withdrawal of provisions.
Particulars 2022-23 2021-22 Overall, the company achieved EBITDA of ₹1,231 Crore
Annual Review
Depreciation & amortisation during FY 2022-23 (FY 2021-22 ₹1,106 Crore), which reflects
260 314 a growth of more than 11%.
expenses
Depreciation cost varies depending on the capitalization time 7. Other comprehensive income
period & mix of assets class. There is a reduction of about 17% (₹ Crore)
in the depreciation cost as compared to previous financial
year. Particulars 2022-23 2021-22
5. Tax expenses Re-measurement of defined (23) 103
employee benefits gain/(loss)
Corporate Profile
(₹ Crore)
Less: Income tax related to above (6) 26
Particulars 2022-23 2021-22 item
Current tax - current year 48 49 Total (17) 77
-Earlier years (159) (126)
Deferred tax -current year 114 109 Other Comprehensive income represents re-measurement
-Earlier years (1) (5) gain/ (loss) on defined benefit plans such as gratuity, PF, Post-
Retirement Medical Benefit (PRMB) etc.
Total 2 27
Board's Report
The Current tax expense for the year is lower, mainly due to B. Financial position
reversal of tax expense on account of adjustment of Income 8. Property, plant and equipment (PPE), intangible assets
Tax refunds pertaining to earlier assessment years. Deferred and capital WIP
tax liabilities (Net) during the year is mainly on account of set
off of brought forward loss. (₹ Crore)
The company received Income Tax refunds of ₹266 Crore Particulars
March 31,2023 March 31, 2022
(including interest income of ₹106 Crore) in FY 2022-23, PPE Intangible Total PPE Intangible Total
which contributed positively not only to Cash flows but also Gross carrying value 6621 328 6949 6331 309 6640
Less: Accumulated
to profitability. depreciation / 4212 261 4473 3995 247 4242
amortisation
6. Profitability Net carrying value
2409 67 2476 2336 62 2398
(net block)
The year 2022-23 witnessed an increase of about 10% in the
CWIP & intangible
topline, however, material cost continues to be at elevated assets under 345 9 354 422 9 431
levels of ~ 72%, similar to FY 2021-22. Though, stringent development
budgetary controls are being exercised, inflation is putting Total 2830 2829
pressures on maintaining operational budgets. Strenuous
efforts have been made during the year through sale of
In line with applicable Ind AS, the company annually assesses
scrap, disposal of non-moving inventory, etc., which has led
to Other Operating Income reaching its highest levels. and modifies the useful life of PPE, and depreciation is
calculated accordingly. In case of any change in useful life,
the financial impact of change in useful life is disclosed as
part of notes to accounts. In FY 2022-23, capital expenditure
of ₹262 Crore has been incurred. The company is diversifying
into newer business areas, which are likely to require
significant capital investments in future.
Properties (i) 2nd Floor office in Chatterjee International
Centre, Kolkata (ii) Indora Residential flats, Nagpur – Land
& buildings and (iii) Vadodra Township - Land & buildings,
Notice
having a net block value of ₹1.42 Crore, have been identified

for sale under asset monetisation drive, subject to requisite
approvals.

9. Equity investments The same could be achieved through continued focus on
liquidation of dues by improving quality of billing, timely
(₹ Crore)
collecting the dues, sequential dispatches as per contractual
March 31,2023 March 31, 2022 requirements, timely closure of pending issues with
Particulars
Impair- Impair- customers, taking requisite action in case of slow-paying /
Investment ment / Net Investment ment / FV Net non-paying contracts, etc.
FV adj. adj.
Investment
in joint 718 (52) 666 718 (52) 666
11. Cash & cash equivalents and bank balances
ventures
(₹ Crore)
Investment
in other
1 3 4 6 (2) 4 Particulars March March
equity
instruments 31, 2023 31, 2022
Total 719 (49) 670 724 (54) 670
Cash & cash equivalents 1561 733
Investment in joint ventures (JVs) were accounted at cost
after considering impairment loss, if any, in line with Ind AS. Deposits having maturity more 4852 6211
Investment in other equity are accounted at fair value through than 3 months but not more than
profit and loss account and changes in carrying value have 12 months
been made based on fair value on the reporting date. Earmarked bank balances & FD 230 210
Regarding investment in Neelanchal Ispat Nigam Limited against margin money
(NINL), the company realized a sum of more than ₹25 Crore, Total 6643 7154
against original investment of ₹5 Crore (valued at NIL in the
balance sheet), with the consequent gain being booked in The company continued its focus on cash generation &
other income. conservation. Due to high investment in contract assets, the
10. Trade receivables (Net) company had some pressures on cash position, however, the
company retained its debt free status with closing positive
(₹ Crore)
cash & bank balance and have enough leverage to invest in
Particulars March 31,2023 March 31, 2022 capex and diversification initiatives.
Non- Current Total Non- Current Total
Current Current It is also pertinent to mention here that continued focus on
Gross 14920 3801 18721 15137 3618 18755 liquidation of dues by improving quality of billing, project-
Receivables centric approach like sequential dispatches, timely collection
Less: 11504 673 12177 11933 593 12526 of dues etc., resulted in significant improvements in CY billing
Allowances for
Bad & doubtful liquidation at 86% (similar as FY 2021-22).
debts
Trade 3416 3128 6544 3204 3025 6229 12. Deferred tax assets (net)
receivables
(net) (₹ Crore)
There has been reduction in Trade Receivables (Net) in terms Particulars March March
of no. of days of revenue from operations from 107 Days in
31, 2023 31, 2022
FY 2021-22 to 102 Days in FY 2022-23.
Deferred tax assets (net) 3423 3530
Deferred tax asset is created mainly on account of items for
which benefit is not available in the current year’s taxable
income but shall be adjustable against future taxable income
on meeting certain conditions in line with the provisions of
the Income Tax Act. The reduction in Deferred Tax Assets
during the year is mainly on account of set-off of brought
forward loss.

13. Other assets
(₹ Crore)
March 31,2023 March 31, 2022
Annual Review
Particulars Non- Non-
Current Total Current Total
Current Current
Contract assets
18929 10811 29740 18248 8692 26940
(Net)
Input tax credit
- 1086 1086 - 964 964
receivable
Claim
300 801 1101 189 755 944
recoverable
Deposit with tax
authorities & 134 450 584 110 533 643
others
Advances &
Corporate Profile
70 139 209 76 92 168
others
Less: Provision 133 236 369 96 243 339
Total 19300 13051 32351 18527 10793 29320
15. Current tax assets /(liabilities) – Net
Contract assets represent unbilled revenue not yet due for
(₹ Crore)
payment as per contract terms. Thus Contract Assets mainly
include event based milestone related payments, payments
Particulars March March
due on obtaining material receipt certificates, project related
31, 2023 31, 2022
finished goods ready for dispatch etc. Contract Assets have
increased by ₹2,800 Crore, mainly on account of skewed Current tax assets / (liabilities) -net
226 119
payment terms of certain projects under execution. of provisions
Board's Report
The amount mainly represents TDS (net of provision for tax),
which is due for refund in near future.
14. Inventories
16. Share Capital
(₹ Crore)
(₹ Crore)
Particulars March March
31, 2023 31, 2022 Particulars March March
31, 2023 31, 2022
Raw material & components 3029 2914
WIP 3483 3349 Authorised share capital 2000 2000
FG 512 608 Issued, subscribed & paid up share

696 696
capital
Stores & spare parts 203 208
Other inventory 273 228 There has been no change in the share capital during the
current financial year. The shareholding of promoter [GOI]
Sub total 7500 7307 stands unchanged at 63.17%.
Less: Provision for non-moving 744 747
17. Other equity
inventory
(₹ Crore)
Total 6756 6560
As a measure towards optimized working capital management, Particulars March 31, March 31,
due focus has been assigned towards prudent inventory 2023 2022
management practices in the recent years, which has led to
improvement in inventory levels (in no. of days of revenues). Opening balance 26275 25788
Raw material is being procured, prioritizing production needs Reinstatement due to change in
and keeping the inventory at optimum levels. - -
policies or prior period errors
Add: Total comprehensive
430 487
Notice
income/(loss) for the year

Less: Dividend (incl. interim
(139) -
dividend) paid during the year
Closing balance 26566 26275

The other equity includes capital reserve of ₹35 Crore (PY 20. Provisions
₹35 Crore) and capital redemption reserve of ₹38 Crore (PY
(₹ Crore)
₹38 Crore)
March 31,2023 March 31, 2022
The change in net worth is due to post tax profit during the Particulars Non- Non-
year & dividend for FY 2021-22 paid during the year. Dividend Current Total Current Total
Current Current
@20% for the year 2021-22 was approved by the Shareholders Provision for
in the AGM held on 29th September 2022 & subsequently paid contractual 2990 784 3774 2620 1235 3855
obligation
during the year.
Provision for
In line with the dividend distribution policy of the company, employee 878 1384 2262 857 1061 1918
benefits
the Board has recommended 20% dividend for FY 2022-23,
Other provisions 233 623 856 293 760 1053
subject to approval of shareholders in AGM. Provision for CSR - 6 6 2 10 12
Total 4101 2797 6898 3771 3067 6838
18. Borrowings & Lease Liabilities
The provision for employee benefits is based on actuarial
(₹ Crore) valuation of leave, medical and gratuity benefits. Other
March 31,2023 March 31, 2022
provisions mainly include provisions for loss making
Particulars Non- Non- contracts. The CSR provision of ₹6 Crore represents unspent
Current Total Current Total amount on ongoing projects, balance of amount transferred
Current Current
Borrowings - 5385 5385 - 4745 4745 to a separate bank account last year as per Companies
Lease Liabilities 34 35 69 35 50 85 Amendment Rules 2021.
Total 34 5420 5454 35 4795 4830
The company resorted to intermittent short term borrowings 21. Other liabilities
to bridge the temporary gaps in cash inflows/outflows. Short (₹ Crore)
term borrowings in the form of WCDL, PCFC loan, loan
against FD’s and commercial paper were availed. Despite the Particulars March 31,2023 March 31, 2022
Non- Current Total Non- Current Total
challenges on liquidity front, the company retained its debt Current Current
free status with closing positive cash & bank balance and
Advances from 2586 3049 5635 2194 3854 6048
has enough leverage to invest in capex and diversification customers
initiatives. (incl. valuation
adjustments)
The cash & bank balance (net of short term borrowings) as at Statutory dues - 908 908 - 776 776
31st March 2023 was ₹1,258 Crore as against ₹2,409 Crore as
Govt. grants 20 5 25 19 6 25
at 31st March 2022.
Total 2606 3962 6568 2213 4636 6849
The company has continued to ensure repayment of its
borrowings on or before the due date. Advances from customers get adjusted progressively during
execution of the projects. Statutory dues are primarily GST
19. Financial liabilities liability, to be discharged on due dates after adjustment of
input tax credit disclosed under “other assets” (Refer Sl No.
(₹ Crore)
13 above). The company has been discharging all its GST and
March 31,2023 March 31, 2022 other dues in time.
Particulars Non- Non-
Current Total Current Total
Current Current C. Fund Position
Trade payables 2194 9896 12090 2132 7750 9882 22. Fund flow position and liquidity
Other financial
256 1277 1533 215 1124 1339 (₹ Crore)
liabilities
Total 2450 11173 13623 2347 8874 11221
The increase in trade payables is in line with the higher scale Cash generated from Operations
of operations. A substantial part of the trade payables is 254 (341)
before working capital changes
due to retention money not due as per contractual terms,
and some cases being under litigation /arbitral settlement. Net cash inflow / (outflow) from
(1106) 592
The company continued to proactively engage with the working capital changes
vendors/sub-contractors and made all out efforts to release Net cash inflow / (outflow) from
timely payments. (742) 660
operating activities
Net cash inflow / (outflow) from
1480 (1125)
investing activities
Net cash inflow / (outflow) from
89 (330)
financing activities

The company could generate positive cash from operations In FY 2022-23, BGGTS paid final dividend of 400% (for FY
(before working capital changes) to the extent of ₹254 Crore, 2021-22) and interim dividend of 700% on the equity share
as against negative ₹341 Crore previous year. Due to skewed capital of ₹4.76 Crore.
payment terms, there was higher investment in contract
b. NTPC BHEL Power Projects Private Limited (NBPPL):
Annual Review
assets and consequently working capital, which is expected
to get liquidated progressively over the next 2-3 years. NTPC BHEL Power Projects Private Limited (NBPPL) is a Joint
Venture Company of BHEL and NTPC Limited, promoted to
D. Key Financial Ratios
execute EPC contracts for Power Plants and manufacture
In compliance with the requirement of listing regulations, power plant equipment. The JVC has a manufacturing facility
the key financial ratios along with explanations, wherever for Balance of Plant (BoP) equipment at Mannavaram in
required, have been provided in Note[43] of the financial Andhra Pradesh. The brief financials are tabulated below:
statements.
(₹ Crore)
E. Segment performance
Corporate Profile
Particulars 2022-23* 2021-22
The Company has two operating segments, power and
BHEL share (%) 50% 50%
industry. Both the business segments have reported positive
bottom line. The performance of segments is given below: BHEL’s investment in 50.00 50.00
equity
(₹ Crore)
Revenue from operations 44.45 54.74
2022-23 2021-22 (RPCL)
Particulars
Power Industry Power Industry Profit/(Loss) for the year (5.49) (19.87)
Segment revenue 17499 4637 15361 4792 (RPCL)
Board's Report
Segment results 1400 433 1949 (39) * based on provisional unaudited figures
Segment capital employed 18300 3094 17100 3440
In-principle approval for pursuing winding up of NBPPL
has been accorded by the Board of Directors in its meeting
held on February 8, 2018. Ministry of Power, Government
of India vide letter dated 23.08.2019 advised NTPC Ltd. to
consider buying out the stake of BHEL and thereafter decide
either to continue it as an in-house EPC arm or close it
after completion of present work. Further, through letter dt.
28.10.2022, MoP has advised that the process of winding
up of NBPPL be taken up by NTPC and BHEL after the
completion of balance ongoing works at 1x500 MW Feroze
Gandhi Unchahar Thermal Power Plant.
c. Raichur Power Corporation Limited (RPCL):
Raichur Power Corporation Limited (RPCL) is a Joint Venture
1.8.2 Financial Review of Joint Venture Companies Company of BHEL and Karnataka Power Corporation Limited
a. BHEL-GE Gas Turbine Services Private Limited (BGGTS): (KPCL) promoted for setting up of 800 MW supercritical
thermal power plants in Karnataka on build, own and operate
BHEL-GE Gas Turbine Services Private Limited (BGGTS) is
basis. The paid-up equity capital as on March 31, 2023 was
a Joint Venture Company of BHEL and GE, USA formed to
take up repair & servicing of GE designed gas turbines. The ₹2,999.76 Crore with contribution of ₹2,335.72 Crore from
financials in brief are as below: KPCL and ₹664.04 Crore from BHEL. The financials of the
Company are as under:
(₹ Crore)
(₹ Crore)
Particulars 2022-23* 2021-22
One share less One share less
BHEL share (%) BHEL share (%) 22.14% 22.14%
than 50% than 50%
BHEL’s investment in equity 664.04 664.04
BHEL’s investment in
Notice
2.38 2.38 Revenue from operations 3035.43 3198.68

equity
Profit/(Loss) for the year (1114.58) (678.22)
Revenue from
967.13 801.18 * based on provisional unaudited figures
operations
Profit/(loss) after tax 112.56 100.84 Though the company had higher losses in FY 2022-23, with
improved power demand, the operations of the plant are
Net worth 464.59 403.21
expected to improve, aiding the bottom-line of the company.

d. Power Plant Performance Improvement Private Limited Financial position
(PPPIL):
(₹ Crore)
Power plant Performance Improvement Private Limited
(PPPIL) is a Joint Venture Company of BHEL and Siemens AG, Particulars March 31, March 31,
Germany promoted for performance improvement of old 2023 2022
fossil fuel power plants. Assets
Since sufficient business to ensure viability of the Company Property, plant and equipment, 2830 2829
was not forthcoming, the promoter partners mutually agreed intangible assets and CWIP
to gradually wind up the Company. All the pending contracts (net carrying value)
of the JVC were closed and the process of winding up was
initiated during FY 2018-19. The JVC is under liquidation. Investment accounted for 232 202
using equity method
Investment in PPPIL is ₹2 Crore which has been fully provided
for. Non-current financial assets 3503 3294
Deferred tax assets (net) 3423 3530
1.8.3 Consolidated Financial Statement (CFS)
Non-current other assets 19300 18527
Consolidated Financial Statements have been prepared in Current assets 30082 27862
accordance with Ind AS -110 on “Consolidated Financial
Statements” and Ind AS 28 “Investments in Associates and Total 59370 56244
Joint Ventures”. Equity and Liabilities
In the financial statements, for joint ventures, Equity method Equity share capital 696 696
is adopted in line with Ind AS. M/s PPPIL was not considered Other equity 26132 25810
for CFS as it is under liquidation
Non-current liabilities 9190 8366
A summary of the results on financial performance, in line
Current liabilities 23352 21372
with the afore-mentioned Ind AS are as under
Total 59370 56244
Financial performance
1.9 Capital investment
(₹ Crore)
Continuing the focus toward enhancing productivity and
Particulars For the year ended achieving sustainable growth, the company has invested
in modernization & upgradation of its existing facilities
March 31, March 31,
thereby reinforcing capability in business areas like Defence,
2023 2022 Transmission, Nuclear during the year 2022-23 and has
Revenue from operations 23365 21211 incurred a capital expenditure of ₹262 Crore.
Profit /(loss) before tax 479 470 Further, augmentation of various testing facilities is also being
Profit /(loss) after tax 477 445 carried out under the Capital Goods-II scheme of MHI at the
company’s Hyderabad unit, Bhopal unit and Corp R&D.
Other comprehensive income/
(17) 77
(loss) 1.10 Internal Financial Control System
Total comprehensive income The Internal Financial Control (IFC) of BHEL is designed
461 522
/ (loss) in the form of well documented policies and procedures
The share of profit in respect of joint venture - BGGTS was for ensuring orderly and efficient conduct of its business,
₹56.02 Crore in FY 2022-23 as against profit of ₹50.42 Crore including adherence to Company’s policies, safeguarding of
in FY 2021-22. The joint venture companies (NBPPL and assets, prevention & detection of frauds and errors, accuracy
RPCL) have incurred losses in FY 2022-23. The accumulated & completeness of the accounting records, and timely
losses equal to the cost of investment in these two JVs have preparation of reliable financial information.
already been recognized in the consolidated financial results, The source of implementation and maintenance of IFC
in FY 2018-19. are Manuals, Guidelines, Delegation of Powers and IT
system & controls, and are effected through well-defined
organizational structure i.e. people operating in various
departments within the Company at different levels at each
stage of the processes.

BHEL has an in-house Internal Audit Department winning the first CII Exim Bank recognition in 2020, after a
commensurate with its size of operations and nature of its gap of 14 years and winning 4 awards in 2021, which reflects
business. In addition to Corporate Internal Audit department, the success of the ‘Quality First’ movement.
12 Internal Audit Cells are set up across BHEL to cover
BHEL has developed and implemented a comprehensive
Annual Review
internal audit activities at all locations of BHEL. With a view to
Quality Roadmap across the organization, focusing on
assess the adequacy and effectiveness of IFC, Internal Audit
improving People, Process and Process Quality. In our
carries out continuous audit of risk focused areas and critical
commitment to fostering efficiency in our workplace, BHEL
appraisal of the functioning of the processes and systems
launched the 5S movement across all BHEL divisions & units
designed at respective locations. Based on the report of
in FY 2022-23. The 5S methodology, a lean manufacturing
internal audit function, process owners undertake corrective
tool, is being implemented to enhance workplace excellence
action(s) in their respective area(s), thereby strengthening
with improvement in productivity, quality, safety etc. As
controls.
part of this initiative, nine BHEL units/ divisions, viz. HEEP
Audit assignments are conducted as per Annual Audit Plan Haridwar, HPBP Trichy, HPEP Hyderabad, EDN Bengaluru,
Corporate Profile
approved by Board Level Audit Committee (BLAC). Results of HEP Bhopal, TP Jhansi, BAP Ranipet, PEM Noida and PSNR
Internal Audit activities are shared with all Units and Regions. Khurja site, received 5S certification from M/s Margdarshan
BLAC also reviews major Internal Audit observations and CAG for the first time, affirming our commitment to maintain a
audit findings, and issues directions, wherever required, to streamlined and efficient workplace environment.
strengthen the IFC, keeping in view the dynamic environment
Integrated Quality Health Index (QHI) is being implemented
in which the Company is operating.
across the organization, considering Quality Performance
Internal Financial Controls in BHEL has been evaluated at all Indicators, Quality Management System maturity, and overall
locations by the Internal Audit during the year by applying test Business Excellence. Based on the QHI scores for FY 2022-23,
of controls and the controls tested have been found in place, HEEP Haridwar, HPEP Hyderabad, and HPBP Trichy emerged
are adequate and operating effectively within the company. as the top three units, with an overall increase of over 4.5%
Board's Report
(Year-on-Year) in the QHI across the organization.
Independent Auditors Report on the Internal Financial
controls of the company in terms of Clause (i) of sub-section Periodic Quality Audits, Quality Management Effectiveness
3 of section 143 of the Companies Act, 2013 by the Statutory Reviews and Total Quality Management (TQM) assessments
Auditors is placed along with the Financial statements. by CII/ CQ & BE are being conducted to strengthen the
Statutory Auditors in its report expressed an unmodified existing quality systems in manufacturing units, engineering
opinion on the adequacy and operating effectiveness of the centers, and power sector project sites. All BHEL divisions
Company’s internal financial controls over financial reporting. underwent QMER review and TQM assessment as per EFQM
2020 model.
1.11 Quality Performance
BHEL was the first organization in India to introduce the
BHEL is known to have pioneered the Quality movement concept of Quality Circle (QC) movement in 1981. There
in the country. The company was the first to introduce are 993 Quality Circles, each contributing to the culture
Quality Circle concept in India in 1981. Over the past four of continuous improvement in BHEL. In a remarkable
years, with a view to make quality once again a hallmark achievement, all eight BHEL Quality Circle teams which
of the company’s products and services, a company-wide participated at the 47th International Convention on Quality
“Quality First” initiative had been taken-up in mission mode. Control Circles - 2022 (ICQCC) held in Jakarta, Indonesia,
Under the initiative, the company is strengthening the bagged the Gold Award (highest Award category).
Quality of its products, services and internal systems through
implementation of various quality initiatives. Conversation on Quality i.e. “Qonverse” has been in practice
since FY 2020-21 which encourages units to adapt best & unique
BHEL has taken several steps to enhance the maturity of practices followed in other BHEL units. Major focus is given to
its quality systems, following the “Quality 360” model. training, in which Quality Management training programs are
Additionally, the company has strengthened its Business conducted at different centres of BHEL in addition to trainings
Excellence journey, aligning with the EFQM-2020 framework, conducted by Human Resource Development (HRD) Centres of
and enhanced 5S culture as well as revitalized Quality Health units for capability building of employees in the field of Quality.
through implementation of the “ Quality Health Index (QHI)”.
With diversification of BHEL into new areas, major
In recognition of its unwavering commitment to excellence, emphasis is being given on establishing robust Quality
BHEL was honored with the first-ever “Special Jury Management Systems for new products. In FY 2022-
Commendation for Adoption and Nurturance of Business 23, Directorate General of Aeronautical Quality Assurance
Notice
Excellence” from CII-EXIM Bank. BHEL’s HPBP Trichy, HEEP (DGAQA) approved HPVP Vizag unit & its Quality Management
Haridwar, HEP Bhopal and HPEP Hyderabad units were Systems for the first time with AFQMS (Approval of Firms and
awarded Platinum recognition, while PEM Noida, EDN its Quality Management System). Additionally, HPVP Vizag
Bengaluru, BAP Ranipet and PSNR Noida received Gold Plus and BAP Ranipet units of BHEL adhere to the requirements of
recognition under the “CII EXIM Bank award for Business Aviation, Space and Defense Organization as per Aerospace
Excellence 2022”. The company has come a long way from Standard (AS 9100). Different products of BHEL are also

certified by agencies such as the Central Boilers Board, simplifying policies for making them employee centric, etc.,
India; American Society of Mechanical Engineers (ASME), were undertaken during the year.
USA; Bureau of Indian Standards (BIS); American Petroleum
Institute (API), USA; and Lloyds Register, etc. 1.12.1 Learning and Development
Continual development of technical and behavioural skills of
1.12 Human resource
all its employees, i.e., executives, supervisors and artisans is
People are the greatest asset for an engineering organization of paramount importance to BHEL. With the ongoing energy
and BHEL takes pride in its motivated and competent transition as well as diversification initiatives undertaken by the
workforce. Substantial efforts have been made to transform company, the company is focusing on unlearning and relearning
BHEL into a ‘Project Centric’ organization. Unit reach- to create an agile, adaptive and future ready workforce.
out programs have been undertaken to comprehensively
The programs offered by Corporate Learning & Development
comprehend employee-related issues and concerns, raise
(CLD) are covered under three broad categories a) Technical
awareness of organizational goals, elucidate the rationale
and Functional Training b) e-Learning through UNNAYAN
behind organizational changes, and actively work towards
portal and c) Managerial and Behavioural Training. Certification
resolving expressed concerns.
programs are provided to employees in the area of Project
Over the past few years, alignment of individual goals/ targets Management. Apart from that, 98 e-learning modules have
with those of the unit/ division as well as organization has been made available to all employees. Special programs in area
been given paramount importance. Rewards and recognition of cost reduction were also conducted for employees.
have been linked to achievement of substantiative goals
The reskilling for the existing trades has been carried out in areas
to inculcate a sense of accountability & responsibility.
such as FGD, Nuclear Power Plant, Control systems, Power
Furthermore, BHEL has strengthened its companywide
Transformers, Compressors, Pumps, Regenerative Braking
balance scorecard framework to establish core Key
System in WAG-7, Turbine and its auxiliaries.
Performance Indicators aligned with critical success factors
of the organization and a KPI library has also been developed The skilling/upskilling has been carried out in areas such as
to promote objectivity, measurement, and relevance of KPIs Coal to Methanol, Coal to Ammonia, Battery Manufacturing
to role holders and functions. and Energy Storage systems, Electrolyzers for Green
Hydrogen, Floating Solar Power Plant, Hydrogen economy,
For the long term and continuous development of its human
AUSC Technology, Additive Manufacturing, Electric Vehicles
capital, initiatives like training/retraining of the workforce
and Charging Technology, Flexibilisation of Thermal Power
(executives, supervisors as well as workers), use of e-Modules
Plants, Train Collision Avoidance System (TCAS) & Automatic
for ensuring continual training, leadership development
Train Protections (ATP) System, etc.
programs, strengthening of internal communication,
Quality Month with the theme of ‘Quality First’ was observed across BHEL in November 2022

Several programs on developing capabilities of internal 1.12.2 Performance and Career Development
faculties in the area of technical/ functional trainings have
Succession Planning has been identified as one of the
also been organized. In-house faculties were developed
core intervention areas by HR while chalking out the
through ‘Faculty Development Program’ which is expected
transformational journey of BHEL. At an organizational level,
Annual Review
to have a cascading impact. Safety is an important focus
unique roles are being revisited and critical roles are being
area for the company for which a monthly series has been
identified. Succession planning for these roles are being
initiated on ‘Safety Induction Training’ for employees posted
done by first identifying the key success factors for those
at sites, to help improve their safety aspect.
roles, and developing and grooming a pool of successors to
BHEL engaged 1859 apprentices across its Units in 2022-23, mitigate any personnel risks.
out of which 1390 were Trade (ITI) Apprentices. From the
BHEL revisited its leadership competency model, and its
Graduate, Diploma, Vocational or non-technical apprentices,
behavioral elements which the leaders of the organization
469 apprentices were engaged. The apprentices were
are expected to demonstrate. This exercise involved
provided on the job learning opportunity on the world class
assessing senior leadership through development centers
Corporate Profile
engineering infrastructure to make them ready to face the
and subsequently identifying individual development
future with best skills in manufacturing sector.
interventions, such as Management Development Programs
BHEL’s 7th “Learning Week” was celebrated across (MDPs) at renowned institutions like IIMs, to develop potential
manufacturing units and regions from 5th to 11th September leaders within the organization.
2022, with the theme, ‘Strategise-Innovate-Implement’ to
Special programs are being conducted internally as well
align with the ongoing Strategic Plan 2022-27. Performance
as in collaboration with leading management institutes,
and Career Development
for developing leadership at various other levels. Focused
training programs to develop technical and behavioral
skills in sync with the organization needs/ ethos have been
Board's Report
designed and implemented.
Notice

Employee Satisfaction and Engagement Survey 2021-22 1.12.3 Industrial Relations
An Employee Satisfaction and Engagement Survey at an All round development through “Participation of All”,
organization level is conducted every alternate year. The ensured by way of BHEL’s policy of open and continuous
drivers of engagement and satisfaction are dependent on communication with all sections of employees, has been
parameters like learning & development, communication, the driving mantra of our industrial relations journey. The
career & performance management, rewards & recognition impetus given to participatory culture by the Management
and health, safety, environment, compensation and physical in close collaboration with various employee groups has
work environment. The Employee Satisfaction & Engagement been instrumental in maintaining and building a congenial
index ESEI for 2021-22 stands at 7.88 (on a scale of 10). harmonious Industrial Relations climate in the organization.
Disclosure under section 134 (3)(p) of the Companies Act During FY 2022-23, BHEL’s manufacturing units, divisions,
and offices reported harmonious and peaceful industrial
As per Section 134 (3) (p) of the Companies Act 2013, the relations. Negligible man-days (0.002%) were lost during the
Board’s Report of a listed company shall include a statement year on account of strike against company policies, which
indicating the manner of formal annual evaluation of the bears testimony to the concerted efforts undertaken by the
Board, individual directors etc. Ministry of Corporate Affairs management as well as the employee groups to work jointly
has, vide its notification dated 5th June, 2015, notified the towards the company’s goal.
exemptions to Government Companies from the provisions
of the Companies Act, 2013 which inter alia provides In line with BHEL’s commitment to maintaining a participatory
that Sec. 134(3)(p) regarding statement on formal annual culture, one meeting of the apex level bipartite forum namely
evaluation shall not apply to Government Companies in “the Joint Committee for BHEL” was held during the year.
case the directors are evaluated by the ministry which Additionally, at the unit level, 38 meetings of “Plant Councils”
is administratively in-charge of the company as per its and 278 meetings of “Shop Councils” were held at various
own evaluation methodology. Further, in line with above manufacturing locations. The discussions in these forums
exemptions, Sub-Sections (2), (3) & (4) of Sec. 178 regarding revolved around improving the overall performance of the
appointment, performance evaluation and remuneration company by increasing productivity, enhancing quality,
shall not apply to directors of government companies. safety, and delivery to meet customer commitments, and
adopting various cost reduction measures to improve the
In a CPSE, the MoU signed between the Company and the financial health of the company. Through these efforts,
Govt. of India details out the parameters and initiatives that BHEL aims to benefit its various stakeholders, including
the company is required to undertake during that financial employees, by ensuring sustainable growth, competitiveness
year. This MoU is evaluated at the end of the year by the Govt. and profitability.
and a performance rating is assigned to BHEL based on its
performance on the spelt-out parameters. Further, there is a 1.12.4 Manpower Strength
well laid down procedure for performance evaluation of CMD
The Manpower Strength of BHEL as on 31st March 2023 is
and Functional Directors. Department of Public Enterprises
29,536 consisting of 10,187 Executives, 4,363 Supervisors
(DPE) has designed a format and laid down a procedure for
and 14,986 Workers.
evaluation of the Functional Director’s performance. The
tenure of Functional Directors as spelt out in their Terms and
Conditions of Appointment is five years or the date of their
superannuation, whichever is earlier.
The terms of reference of Board Level Committees are
approved by the Board. The minutes of Board Level
Committees are placed before the Board for its perusal.
Appointment of Independent Directors and their tenure
(normally three years) is decided by the Government of
India. DPE, through BHEL’s Administrative Ministry (MHI), has
been evaluating/ assessing the performance of independent
directors on the Board of the company.
Dir.(IS&P), BHEL with BHEL engineers during a project review at

IOCL Panipat Refinery

Annual Review
Corporate Profile
Board's Report
CMD, BHEL inspecting punching operations at HEP, Bhopal
1.12.5 Status on Presidential Directives Other relevant information on the subject is furnished
below:
No Presidential Directives have been received w.r.t (A)
Reservation policy for reserved category persons (B) i. Representation of SC/ST/OBC/EWS employees
Safeguard of women at workplace during the years 2020-21,
The overall representation of SC/ST/OBC employees in
2021-22 and 2022-23.
total manpower as on 31 Dec 2022 was 20.73%, 7.56%
1.12.5.1 Directives on Reservation Policy for Reserved and 36.92% for SCs, STs and OBCs respectively. During
Category Persons the year 2022, 22 recruitments including 02 SCs and 01
ST took place in Group A and C.
Presidential Directives on reservation policy issued by
Central Government from time to time provide for certain The Annual Statement in the prescribed format showing
percentages of reservation in direct recruitment as well the representation of SCs, STs, OBCs and EWS as on 31
as promotion in specified posts and for specified reserved Dec 2022 and number of appointments made during
category of candidates, i.e SCs, STs, OBCs and Persons the calendar year, is given at Annexure - A.
with Disabilities (PwD). Besides, the directives also contain ii. Manpower strength of PwD employees as on 31 Dec
provision for certain concessions and relaxations for 2022
specified category of employees in direct recruitment and
promotion. The Presidential Directives on the subject are Total number of PwD employees as on 31 Dec 2022
being strictly complied with and reservation percentages are was 835. During the year 2022, one lateral recruitment
Notice
ensured through maintenance of Post Based Roster system took place in OH Category in Group A. The group wise
as prescribed by Govt. However, there is no direct impact of manpower strength of PwD employees in the Company
these guidelines on the financial position of the company. as on 31 Dec 2022 is given at Annexure - B.

1.12.5.2 Safeguard of Women at Workplace key provisions of the Act, Duties of the Employer, Complaints
Redressal Mechanism, Action for Malicious Complaints &
An Act to provide protection against sexual harassment of
various misconceptions about Sexual Harassment have been
women at workplace and for the prevention and redressal
displayed at conspicuous places in all units in Hindi, English
of complaints of sexual harassment and for matters
and regional languages. The Act requires companies to
connected therewith or incidental thereto called “The Sexual
conduct orientation sessions or training for the ICC annually.
Harassment of Women at Workplace (Prevention, Prohibition
Internal Complaints Committee must have knowledge
and Redressal) Act, 2013”, has come into force from 9th
and sensitivity to redress the grievances of women. This is
December, 2013 with notification of rules by Government of
mandatory not just legally but also for the workplace safety. In
India, Ministry of Women and Child Development called “The
line with the Act a workshop for ICC Members was organized
Sexual Harassment of Women at Workplace (Prevention,
on pan BHEL basis. At unit level, 24 Workshops / awareness
Prohibition and Redressal) Rules, 2013”.
programmes were conducted on Sexual Harassment Act and
The provisions of the Act and the rules thereunder are being Gender Sensitization.
strictly complied with. In accordance with the Act, Internal
During the year FY 2022-23, no case was reported. 03 carry
Complaints Committee (ICC) has been constituted in all
forward cases of FY 2021-22 were disposed-off. As on
units of BHEL and their constitution and contact details have
31.03.2023, no case is pending.
been hosted on the unit’s website. Posters highlighting the
International Women’s Day celebrated at Corporate Office, New Delhi

Annexure – A
Annual Statement showing the representation of SCs, STs, OBCs and EWS as on 31 Dec 2022 and appointments made during
the calendar year 2022
Annual Review
Representation of SCs/STs/OBCs/EWS
No. of appointments made during the calendar year 2022
(As on December 31, 2022)
By Direct Recruitment By Promotion* By Deputation/ Absorption
Groups
Total
No. of
EWS SCs STs OBCs Total EWS SCs STs OBCs Total SCs STs Total SCs STs OBCs
Employ
ees
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Corporate Profile
Group A 11229 6 2033 929 3139 13 0 1 0 0 0 0 0 0
Group B 4522 0 917 527 1117 0 0 0 0 0 0 0 0 0
Group C 13905 3 3184 797 6684 9 0 1 1 0 0 0 0 0

---- NA ----
Group D
151 0 32 3 72 0 0 0 0 0 0 0 0 0
(Excl. SW)
Group D
19 0 18 0 0 0 0 0 0 0 0 0 0 0
(SW)
Total 29826 9 6184 2256 11012 22 0 2 1 0 0 0 0 0 0 0 0
Board's Report
* In BHEL there are no appointments at induction level by promotion
Annexure – B
Statement showing number of persons with disabilities appointed during the year 2022
Number Of Employees Direct Recruitment Promotion*
Total VH HH OH No. of vacancies reserved Total No. of appointments made Total No. of
No. of Vacancies
Group number of appointments
reserved
employees made
VH HH OH VH HH OH VH OH HH VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group A 11229 5 16 288 0 0 5 5 0 0 1
Group B 4522 1 7 125 0 0 0 0 0 0 0
Group C 13905 16 24 345 0 0 0 0 0 0 0 --------------NA-----------
Group D 170 2 4 2 0 0 0 0 0 0 0
Total 29826 24 51 760 0 0 5 5 0 0 1
Note:
(i) VH stands for Visually Handicapped (persons suffering from blindness or low vision)
(ii) HH stands for Hearing Handicapped (persons suffering from hearing impairment)
(iii) OH stands for Orthopaedically Handicapped (persons suffering from locomotor disability or cerebral palsy)
* In BHEL there are no appointments at induction level by promotion
Notice

1.13 Capacity Building for the Country Policy. The process for risk identification is consciously
guided by the Company’s objectives, external environment,
Your company is setting up a “Common Engineering Facility
Industry reports as well as internal and external stakeholders,
Centre (CEFC)” for skill development in Welding Technology
amongst others.
at WRI Trichy along with its extension centers at Varanasi,
Ranipet, Bhopal, Jhansi and Haridwar with MHI’s support. BHEL has in place a Board approved Risk Management Charter
The centres will have the capacity to train ~5000 Trainees & Policy to implement a structured and comprehensive
annually in basic & advanced welding technologies under the enterprise risk management system. The charter is
MHI scheme of “Enhancement of Competitiveness in Indian intended to establish a common understanding, language
Capital Goods Sector Phase II (CG-II)”. The CEFC at WRI and methodology for identifying, assessing, responding,
Trichy along with its extension centres at Varanasi, Ranipet, monitoring and reporting risks and to provide assurance to
Bhopal, Jhansi and Haridwar are already functional, and have the management that key risks are being properly identified
already trained more than 2000 welders by June, 2023. and effectively managed in the company.
1.14 Right to Information Act, 2005 The Risk Management framework of BHEL has three tier
Structure, with the Board of Directors (BoD), represented
In consonance with the provisions of the Right to Information by the Board Level Risk Management Committee (BLRMC)
Act, 2005 (the Act), BHEL works towards promoting at the Apex Level, the Risk Management Steering Committee
transparency and accountability. A Central Public Information (RMSC) at the Corporate Level and the Risk Management
Officer (CPIO) at corporate office, along with 24 other CPIOs Committees (RMCs) at the Regions/ Units/ Business Sectors/
at each of the major administrative units are functioning in Corporate Functions.
the Company. 25 First Appellate Authorities also function in
the Company to dispose-off first appeals filed against the The Board Level Risk Management Committee (BLRMC)
orders of the CPIO (s), as provided under the Act. is assigned the responsibilities, inter alia, to formulate a
detailed risk management policy, to ensure that appropriate
As a measure to facilitate citizens in filing their RTI applications methodology, processes and systems are in place to
and first appeals online, BHEL has adopted the online RTI monitor and evaluate risks associated with the business of
web portal (https://rtionline.gov.in) launched by Department the Company, to monitor and oversee implementation of
of Personnel & Training. Consequently, RTI applications and the risk management policy, to periodically review the risk
RTI first appeals filed on the portal are being replied through management policy, to carry out any other function related
online mode. Section 4 (1) (b) disclosures have been made to the terms of reference of the committee as prescribed
available on BHEL’s website. In addition, certain guidelines & under Companies Act, SEBI Regulations and other statutory
proforma(s) indicating procedure for obtaining information regulations etc. The Board / BLRMC regularly reviews top risk
and for filing RTI first appeals under the Act have been placed areas. The BLRMC in its meeting held on 10 January 2023
on BHEL’s website. reviewed the ‘Risk management Charter and Policy’ of BHEL.
The CPIOs and other internal stakeholders involved are Chief Risk Officer (CRO), the convener of BLRMC & RMSC is
sensitized about their obligations under the Act through responsible for periodic reporting on risk management to the
training and workshops. Board/ BLRMC. Key risks faced by the company are analysed
BHEL being a member of Steering Committee on RTI in detail by the Risk Management Steering Committee,
constituted by Standing Conference of Public Enterprise which is responsible for adopting & implementing the risk
(SCOPE) actively participates in its meetings and discussions management framework and leading the risk management
related to RTI matters organized by SCOPE. Quarterly RTI initiative across the company.
Returns have been timely submitted to the Central Information RMSC revisits risk parameters & their measuring parameters
Commission. During FY 2022-23, 602 applications and 89 to ensure their relevance and accordingly recommends
appeals were received, and 554 applications and 78 appeals amendment/ deletion/ addition to the same. In this year,
were disposed-off. RMSC recommended to include a new risk measurement
parameter related to orders booked from non-coal business
1.15 Risks and Concerns
for the risk statement of ‘Excess domestic manufacturing
BHEL’s business have exposure to various types of internal capacities, Changes in business mix due to policy changes
and external risks related to financial, operational, sectoral, and Increasing Competition leading to lower Order Book’
technological, ESG specific, cyber security and geo-political. enabling it to formulate strategies to effectively address the
Changing business environment, dynamic customer associated risk. Risk management committees at unit level
requirements, technology considerations, long duration of analyse the risks concerned to their respective areas, prepare
contracts, and timely on-site product support requirements mitigation plans, ensure their implementation and also inform
in adverse conditions, are some risks specific to the working the top management, if required.
of BHEL.
Top six key risks which the company faces and corresponding
Considering the pervasiveness of industry risks, diversity of strategies for mitigation are mentioned in the table below:
the company’s business portfolio and geographical locations
of operations, BHEL has in place a robust Risk Management

Risk Statement Mitigation Strategies Risk Statement Mitigation Strategies
Excess The ongoing energy transition has • Focus on areas like Transportation,
domestic shifted focus from fossil fuel-based Defence and Aerospace, Spares and
Annual Review
manufacturing power generation to greener ways of services and International Operations.
capacities, electricity production resulting in large
• BHEL-TRSL (BHEL-Titagarh Rail
Changes in unutilised capacities. The company’s
System Ltd.) consortium has been
business mix traditional ‘Thermal’ business had
awarded a contract for 80 “Vande
due to policy ‘Nil’ Main Plant equipment order for
Bharat” trains. The BHEL-TRSL
changes and about three years (with the order for
consortium was the only fully home-
Increasing the 2x660 MW, NTPC Talcher only in
grown Indian bidder amongst the
Competition Sep’2022) impacting revenue realization
five bidders, and is a big step towards
leading to in subsequent years. The company
achieving the vision of “Aatmanirbhar
Corporate Profile
lower Order is offering Lower rating supercritical
Bharat”.
Book plants, indigenous AUSC technology as
well as Solutions for Flexible operation Delayed Focus on Project centric operations
of TPP in thermal sector. delivery of reviews by Senior Management for
projects expeditious execution of Projects
Besides this there has been focus on leading to through:
orders booked from Clean-Coal and LDs, penalties,
Non- Coal Business through: • Successful implementation of
customer
Integrated Project Management
• Thrust on Strategic tie-ups for dissatisfaction
System (IPMS) coupled with ongoing
Board's Report
venturing into emerging new areas and impacting
work on Site Data Digitization (SDD)
viz. “Coal to Chemicals” and “Green company
has enabled real time monitoring
Hydrogen” value chain. image
of project progress as well as quick
- Entered into strategic MoUs with intervention in case of issues.
CIL & NLCIL for setting up Coal • The company has appointed Project
Gasification based plants. BHEL Management Consultant (PMC)
has completed the design and to assist with execution of NTPC
engineering for upscaling of the 2x660MW Talcher Thermal Power
indigenously developed PFBG Project.
technology for gasification of high
ash Indian Coal - enabling “National • Ensured sequential supplies to project
Coal Gasification Mission”. sites for enabling continuous erection
- Leading consultant engaged for • Activities like engineering etc., to

realizing potential opportunities commence at pre-award stage for
in Electrolyser manufacturing and faster execution of projects.
Green Hydrogen value chain. • ‘Project Director’ at sites - empowered
• Catering to the opportunities arising Project Directors with financial power
out of AatmaNirbhar Bharat, Make of Executive Director for faster
in India missions, PLI Schemes and decision making at site to expedite
Capital Goods enhancement scheme work execution
– II. • Inclusion of ‘Bonus clause’
to encourage and incentivize
contractor’s performance.
Rising Debtors • Constitution of Cross Functional
Teams for improved efficacy of Cash
Notice
realisation from every element of

debtors against Ongoing as well as
Commissioned projects.

Risk Statement Mitigation Strategies Risk Statement Mitigation Strategies
Rising Debtors • Vigorous monitoring of billing / cash • Products of same generic type
collection process through separate made in more than one-unit design/
focus on liquidation of old bills and manufacturing practices are being
current year bills. unified & optimized.
• Constant focus & review of every • Surplus material identification and its
element of Debtors and Provisions utilization at sites/ units is being done
thereof by the management. through in-house developed online
portal.
• Expediting completion of various
milestones linked to Cash Inflows of Non- • Recognising the change in
the project availability of technological landscape and the
technology potential it brings for new business
• Seeking support from Ministry/Govt. in core opportunities, the company is
agencies for liquidation of debtors products to addressing the opportunities
• Action against defaulting customers in meet current/ through a combination of in-
line with the Trade Receivables policy future market house development, collaborations
of the company including Arbitration/ requirements with academia, and Technology
NCLT/ AMRCD proceedings. may lead to Collaboration Agreements (TCA)
loss of business with established industry players.
• Focus on completion of project The Company currently has 13
milestones for conversion of contract active TCAs with global engineering
assets into trade receivables & manufacturing leaders and Indian
Significantly, paradigm shift of company’s entities (viz. collaboration with
culture to project centric approach General Electric Technology GmbH,
coupled with sequential dispatches, Switzerland for Steam Turbine for 700
timely completion of project activities/ MW Nuclear Power Projects; with
milestones as well as continuous focus Sumitomo SHI FW (SFW), Finland,
on improvement in disciplined billing, for subcritical and supercritical
timely collection of dues has resulted in Circulating Fluidised Bed Combustion
quantum jump in liquidation of current (CFBC) Boilers, etc.)
year billing from 59% in FY 2018-19 to • Development and upgradation of
86% in FY 2022-23. technologies through in-house
Rising direct • With a view to reduce material costs, efforts viz. the company has already
material cost a Cost Optimisation Cell (COC) has indigenously developed Pressurized
affecting been formed for design optimization Fluidized Bed Gasification (PFBG)
profitability in line with industry benchmarks. technology for generating syngas
from high-ash Indian coal.
• The company is also working
towards engineering excellence and • Technology collaboration agreement
judicious procurement right from with GE for addressing Gas Turbines
customer ordering till execution and its spares & services business.
stage, indigenization etc. Further the
• Some of the major MoUs entered to
company is also focusing on orders
cater the newer areas include MoU
in areas having higher gross margins
with:
viz. spares and services, defence,
aerospace, nuclear, etc. - CIL and NLCIL for setting up Coal
Gasification based plants.
- Cummins India Ltd. for prospective
collaboration in areas related to
hydrogen value chain.

1.16 Data and Cyber Security
Risk Statement Mitigation Strategies
Online data & • Next-Gen Cyber Security Operations With a view to safeguard BHEL from cyber threats as well
information Center (Cyber SOC) which is having as to protect its IT assets, the company has implemented
advanced security measures.
Annual Review
security breach enhanced features like User and
leading to loss Entity Behavior Analytics (UEBA), The organization has also deployed a unified and centralized
and critical Security Orchestration, Automation endpoint protection solution with Endpoint Detection and
information and Response (SOAR) and Web Response (EDR) capabilities across its entire infrastructure.
infrastructure Application Firewalls (WAFs) has been To enhance the security of the BHEL network and data,
breakdown implemented. Redundancies are two-factor authentication has been introduced for critical
built-in to ensure Business Continuity. IT services. This implementation aims to effectively
Also, a DR solution is implemented prevent unauthorized access and ensure the integrity and
to take care of a disaster. Threat confidentiality of BHEL’s network and data.
Corporate Profile
intel integrated with Security Continuous monitoring of the network, IT systems, and end
Information and Event Management devices is carried out 24/7 to detect and respond to any
(SIEM) which ensures that the time potential threats or security events. All the logs are collected in
window between the actionable item a Security Information and Event Management (SIEM) system,
generated and the actual action taken which enables correlation and analytics to gain insights into
is minimized. cyber threats. This process takes place in a centralized Cyber
Security Operations Centre (C-SOC).
• Integration of all the internet routers
of BHEL with Cyber Swachhta Kendra This year, we have completely revamped the C-SOC by
implementing various critical features and improvements
(Botnet Cleaning and Malware
Board's Report
which not only automate the mitigation process but also
Analysis Centre of CERT-In, MeitY)
ensures BHEL’s pro-activeness on the identified threats,
• Integration of Information Security some of the significant features include:
Management System (ISMS) across all • Automation through SOAR (Security Orchestration,
the ISO 27001 certified BHEL units. Automation & Response) for immediate action against
cyber threats based on the inputs received from
• Centralized solution for Endpoint
integrated Global Threat Intelligence and advisories
security has been implemented for a
from government bodies like CERT-In & NCIIPC.
holistic view of the company’s security
posture. The common security • Prepackaged configurations (called content packs) for
policies across the organization have common security use cases, such as alarms, views,
been deployed through the system. reports, variables, and watchlists
Central dashboard is regularly • Predefined dashboards, audit trails, and reports for
monitored for any suspicious activity global regulations and control frameworks
and proactive measures are taken to • Ability to collect data from third-party security vendor
control any malware. devices and threat intelligence feeds
• Creating awareness among • Scalable data architecture that collects and correlates
employees to sensitize them log events from multiple years
about phishing mail risks, Phishing
• Ability to enrich events with contextual information
simulation exercise is conducted at
(such as privacy solutions; threat data and reputation
periodic intervals. feeds; and identity and access management systems)
Notice

• Integrated with Web Application Firewall (WAF) with To align with the latest ISO 27001 standard (ISO 27001:2022),
Secure Application Delivery, preventions of DDoS and BHEL plans to upgrade its ISMS system during FY 2023-24
other attacks which will further strengthen the organization’s information
security framework.
BHEL not only recognizes the significance of technology in
mitigating cyber threats, but also acknowledges the pivotal For and on behalf of the Board of Directors of
role employees play in safeguarding the company’s IT assets. BHARAT HEAVY ELECTRICALS LTD.
BHEL conducts various training programmes to educate
and upskill its IT experts, as well as raise awareness amongst
employees regarding cybercrimes, social engineering attacks,
and related risks through simulation exercises, targeted
training programmes and widespread communications Dr. Nalin Shinghal
across the organization.
BHEL has maintained its organization-wide certification of Place: New Delhi
Information Security Management System (ISMS) since 2005.
Dated: July 28, 2023

Annexure-II to the Board’s Directors represented by Government Nominees &
Independent Directors, to maintain independence of the
Report Board and to separate the Board functions of management
and control.
Annual Review
The composition of the Board of Directors as on March
2.1 Our Philosophy on Corporate Governance 31, 2023 is as follows:
BHEL functions within a sound Corporate Governance Actual

framework, which underlines its commitment to quality Board Strength as
Category of Directors
of governance, transparency in disclosures, consistent Structure on March
enhancement of stakeholders’ value and corporate social 31, 2023
responsibility. BHEL endeavours to transcend beyond
Chairman & Managing Director 1 1
the basic and regulatory requirements of corporate
Corporate Profile
governance, focusing consistently on building confidence Whole-time Executive 5 4
of its shareholders, customers, employees, suppliers and (Functional) Directors
the society at large. The Company’s corporate governance Part-time Official Directors 2 2
framework rests upon the cornerstones of transparency, (Government Nominees)
disclosure, independent monitoring, and fairness to all, representing the Ministry of
especially minority shareholders. Heavy Industries, Government of
India
The following factors strengthen Corporate Governance in
BHEL: Part-time Non-official 8 2
Board's Report
(Independent) Directors
i. Independence and versatility of the Board
TOTAL 16 9
ii. Integrity and ethical behavior of all employees
As on March 31, 2023, there exists six vacancies of Part-
iii. Recognition of obligations towards all stakeholders –
time Non-official (Independent) Directors and one vacancy
shareholders, customers, employees, suppliers and the
of Whole-time Executive (Functional) Director i.e. Director
society
(HR), on the Board of BHEL. The matter of filling up of these
iv. High degree of disclosure and transparency levels vacancies is under consideration/process at the end of
v. Legal and regulatory compliance in all areas in which the Government of India.
Company operates ii. Attendance of each Director at the Board Meetings
vi. Achievement of above goals with compassion for people held during 2022-23 and the last AGM
and environment
No. of Board Last AGM
The Company believes in conducting its business in Director’s Name Meetings (held on
compliance with Corporate Governance procedures and S/ Shri
Held Attended 29.09.2022)
Code of Conduct, exemplifies each of the core values,
which positions BHEL to deliver long-term returns to the Executive Directors
shareholders, favourable outcomes to the customers,
Dr. Nalin Shinghal, 11 11 Yes
attractive opportunities to the employees, opportunity
Chairman & Managing
to the suppliers to partner the Company in progress, and Director@
enrichment of society.
Subodh Gupta, Director 11 11 Yes
2.2 Board of Directors (Finance)
i. Composition & Category of Directors Ms. Renuka Gera, Director 11 11 Yes

(IS&P)$
Pursuant to Section 2(45) of the Companies Act, 2013,
Upinder Singh Matharu, 11 11 Yes
Notice
BHEL is a ‘Government Company’ as 63.17% of the total

Director (Power)#
paid-up share capital of the Company is held by the Central
Government through the President of India. Jai Prakash Srivastava, 6 6 Yes
Director (E, R&D)
The composition of Board of Directors of BHEL has an (w.e.f. August 12, 2022)
appropriate mix of Executive Directors represented by
Functional Directors including CMD and Non-Executive

No. of Board Last AGM Details of
Director’s Name Meetings Committee
(held on Details of
S/ Shri Director’s name Memberships
Held Attended 29.09.2022) Directorships in
S/ Shri and Committee
other Companies
Part-Time Official Directors – Govt. Nominees Chairmanship in
other Companies*
Shashank Priya, 10 8 Yes
Special Secretary & Dr. Nalin Shinghal, Heavy Engineering -NIL-
Financial Adviser, Chairman & Corporation Ltd.
Ministry of Commerce & Managing Director
Industry Subodh Gupta, 1. Raichur Power -NIL-
(upto February 14, 2023) Director (Finance) Corporation Ltd.
Ms. Arti Bhatnagar, 1 1 * 2. BHEL-GE Gas
Additional Secretary & Turbine Services
Financial Advisor, Ministry Pvt. Ltd.
of Commerce & Industry Ms. Renuka Gera, Raichur Power -NIL-
(w.e.f. February 14, 2023) Director (IS&P) Corporation Ltd.
Vijay Mittal, Joint 11 8 Yes Upinder Singh -NIL- -NIL-
Secretary, Ministry of Matharu, Director
Heavy Industries (Power)
Part-Time Non-Official (Independent) Directors Jai Prakash -NIL- -NIL-
Raj Kamal Bindal 9 9 Yes Srivastava,
(upto January 27, 2023) Director (E, R&D)
Manish Kapoor 9 9 Yes Arti Bhatnagar, 1. H.M.T. Ltd. Audit Committee

(upto January 27, 2023) Part-time Official 2. India 1. H.M.T. Ltd.
Director International (Member)
Dr. Raj K. Agarwal 6 6 * Convention 2. MMTC Ltd.
(upto September 12, 2022) & Exhibition (Member)
Centre Ltd. 3. India Trade
Dr. K. Sivaprasad 11 11 Yes 3. Invest India Promotion
Dr. Lekhasri 11 11 Yes 4. MMTC Ltd. Organization
Samantsinghar 5. The State (Chairperson)
Trading
Aditya Prasad Sahu 2 2 * Corporation of Stakeholders
(upto May 30, 2022) India Ltd. Relationship
6. India Trade Committee
@ Held additional charge of the post of Director (HR) upto Promotion 1. H.M.T. Ltd.
April 21, 2022 and thereafter, w.e.f. January 22, 2023 upto Organization (Member)
March 5, 2023.
Vijay Mittal, 1. Andrew Yule & -NIL-
$ Held additional charge of the post of Director (E, R&D) upto Part-time Official Co Ltd.
August 11, 2022. Director 2. Tide Water Oil
Co India Ltd.
# Held additional charge of the post of Director (HR) w.e.f. 3. Tumakuru
April 22, 2022 upto January 21, 2023 and thereafter, w.e.f. Machine Tool
March 6, 2023. Park
4. Heavy
* denotes the respective person was not a Director of BHEL Engineering
as on last AGM date. Corporation Ltd.
A. Details of Directorships, Committee Memberships and Dr. K. Sivaprasad, -NIL- -NIL-
Committee Chairmanship in other companies as on March Independent
31, 2023# Director

Board Meetings to provide additional inputs relating to the
Details of
items being discussed and/ or to give presentation to the
Committee
Details of Board, as per requirement. The Board meets at least once in a
Director’s name Memberships
Directorships in quarter to review the quarterly results and other items on the
S/ Shri and Committee
Annual Review
other Companies agenda. Additional meetings are held, whenever necessary.
Chairmanship in
other Companies*
During the year under review, the Board met eleven times on
Dr. Lekhasri -NIL- -NIL- the following dates:
Samantsinghar,
Independent (i) April 11, 2022 (ii) May 21, 2022 (iii) June 27, 2022
Director
(iv) August 4, 2022 (v) August 12, 2022 (vi) August 18,
*Only Chairmanship/ Membership of the Audit Committee 2022
and Stakeholders Relationship Committee has been
Corporate Profile
(vii) September 22, (viii) November 11, (ix) December 16,
considered.
2022 2022 2022
# The Directorships/ Committee Memberships in other
(x) February 10, (xi) March 25, 2023
companies are based on the latest disclosure received from
2023
respective Directors on the Board.
No Director of the Company holds office at the same time as The Board minutes are prepared promptly after every Board
Director in more than twenty (20) companies. No Director of meeting and circulated to all Directors for their comments,
the Company is a member in more than ten (10) Committees if any, and approved by the Chairman thereafter. The
or acts as Chairperson of more than five (5) Committees approved minutes are then circulated to the departments/
Board's Report
across all listed companies in which he/she is a Director. groups concerned for initiating appropriate action and
implementation.
Disclosure of relationship between Directors inter-se: NIL
iv. List of core skills/ expertise/ competence
B. Details of Directorships in Listed Entities & Category of
Directorship As BHEL is a Government Company, all Directors on its Board
viz., Functional Directors, Government Nominee Directors
As on March 31, 2023, the following Directors held and Independent Directors are selected and appointed by the
Directorship in other listed entities, as under: Government as per a well laid down process for each category
of directors. The requirements of core skills, expertise and
Director’s name Name of Listed Category of competence for the Board to function effectively, in context
S/ Shri Entity Directorship
of business segment BHEL operates in, forms an integral part
Arti Bhatnagar, 1. H.M.T. Ltd. Government of the government’s process of selection of these directors.
Part-time Official 2. MMTC Ltd. Nominee Director Therefore, the Board of BHEL by itself does not identify any
Director 3. The State such core skills or competence required for the job as well
Trading as identification of directors for particular skill/ expertise/
Corporation of competence.
India Ltd.
v. Board’s Responsibilities
Vijay Mittal, 1. Andrew Yule & Government
Part-time Official Co Ltd. Nominee Director The Board’s mandate is to oversee the Company’s strategic
Director 2. Tide Water Oil direction, review and monitor corporate performance,
Co India Ltd. ensure regulatory compliance and safeguard the interests of
the stakeholders.
iii. No. of Board Meetings held, dates on which held
vi. Independent Directors
The meetings of the Board are normally held at the Company’s
The Independent Directors play an important role in
Registered Office in New Delhi and are scheduled well in
deliberations at the Board and Committee meetings and bring
advance. The Company Secretary, in consultation with the
to the Company their expertise in the fields of engineering,
Chairman & Managing Director, sends a written notice of
Notice
finance, management, law, public policy etc.

each Board meeting to each Director.
The Independent Directors are part of important Committees
The members of the Board have access to all information
constituted by the Board such as the Audit Committee,
of the Company and are free to recommend inclusion of
Nomination & Remuneration Committee, Stakeholders
any matter for discussion in agenda which is usually sent in
Relationship Committee and CSR Committee. In terms
advance. The senior management is invited to attend the

of Companies Act, 2013 and Listing Regulations, the Audit • Status of arbitration cases and major legal disputes.
Committee and the Nomination & Remuneration Committee
• Minutes of meetings of Audit Committee and other
are chaired by an Independent Director and function within
Committees of the Board.
their respective defined terms of references.
• The information on recruitment of senior officers just
Further, in line with DPE OM dated December 28, 2012 on
below the Board level.
Model Role & Responsibilities of Non-Official Directors
for CPSEs, the Board had constituted a Committee of • Details of any Joint Venture or R&D project or technical
Independent Directors. The said Committee is in compliance collaboration agreement requiring approval of Board of
with the requirements of Listing Regulations and the Code of Directors.
Independent Directors under Companies Act, 2013.
• Significant labour problems and their proposed
Details regarding familiarization programme of Independent solutions.
Directors are available on the website of the Company
• Any significant development in Human Resources/
www.bhel.com at web link https://www.bhel.com/
Industrial Relations front like signing of wage agreement,
familiarization-programme-directors under the heading
implementation of Voluntary Retirement Scheme etc.
‘Familiarization Programme for Directors’.
• Action Taken Report on matters desired by the Board.
In the opinion of the Board, the Independent Directors fulfil
the conditions specified in the Listing Regulations and are • Any contract(s) in which Director(s) are deemed to be
independent of the Management. interested.
Shri Aditya Prasad Sahu, Independent Director, tendered his • Disclosure of Interest by Directors about directorships
resignation from BHEL’s Board of Directors w.e.f. May 30, and Committee positions occupied by them in other
2022 as he was contesting the Rajya Sabha Elections from companies.
Jharkhand. Further, Dr. Raj K. Agarwal, Independent Director, • Any other matters required to be presented to the
tendered his resignation from BHEL’s Board of Directors w.e.f. Board either for information or approval under Listing
September 12, 2022 citing his pre-occupation in personal Regulations, DPE guidelines and Secretarial Standard-1
affairs & that he shall not be able to devote sufficient time on Meetings of the Board of Directors etc.
towards discharge of his responsibilities as an Independent
Director of the Company. Both Independent Directors had The Board has constituted various Committees to facilitate
confirmed that there are no other material reasons other the smooth and efficient flow of decision making process.
than those provided by them for resignation. The minutes of all Board level committees are circulated
and discussed in the Board meetings. There was no instance
vii. Information placed before the Board of Directors where the Board had not accepted any recommendation of
The agenda placed before the Board interalia includes the any Committee of the Board which is mandatorily required,
following: - during the year under review.
• Annual operating plans and budgets and any updates. viii. Selection of New Directors
• Capital budgets and any updates. As per Articles of Association of BHEL, the President of
India through the Ministry of Heavy Industries, appoints the
• Significant Capital Investment proposals.
Chairman & Managing Director and Functional Directors
• Short term investment of surplus funds. on the Board of BHEL. Two Part-time Official Directors are
nominated by the Administrative Ministry on the Board of
• Sale of investments, subsidiaries and assets which are
BHEL. The President of India also appoints Part-time Non-
material in nature and not in normal course of business.
official (Independent) Directors on the Board of BHEL.
• Changes in significant accounting policies & practices
The Independent Directors are selected by the Ministry of
and reasons for the same.
Heavy Industries in consultation with the Search Committee
• Quarterly results for the Company and its operating of the Department of Public Enterprises which maintains a
divisions or business segments. panel of eminent personalities having wide experience in the
field of Management, Finance, Engineering, Administration,
• Quarterly details of foreign exchange exposures and
Industry etc.
the steps taken by management to limit the issues of
adverse exchange rate movement, if material. ix. Membership Term & Retirement Policy
• Quarterly report on compliance of various laws. The appointment of Chairman & Managing Director and
Functional Directors is made for a period of five years from

the date of their assumption of charge of the post, or till the xiii. CEO/ CFO Certification
date of their superannuation or until further orders, whichever
In terms of Regulation 17(8) of Listing Regulations, the
is the earliest. The Part-time Official Directors continue to be
Compliance certificate issued by the CEO and CFO on the
on the Board of BHEL at the discretion of the Government
financial statements and internal controls relating to financial
Annual Review
of India. The tenure of Part-time Non-official (Independent)
reporting was placed before the Board.
Directors is decided by the Administrative Ministry. Normally,
an Independent Director is appointed for a period of three
2.3 Board Level Audit Committee
years.
i. Terms of reference
x. Code of Conduct
The terms of reference of the Board Level Audit Committee
BHEL has in place a Board approved “Code of Business Conduct
specified by the Board are in conformity with the requirements
and Ethics for Board Members and Senior Management
of Section 177 of the Companies Act, 2013 as well as Listing
Personnel” in line with Clause 49 of the erstwhile Listing
Corporate Profile
Regulations and are as under:
Agreement since 2005. The Code is revised from time to time
in line with changes in the regulatory framework including 1. Oversight of the company’s financial reporting process
changes in the Listing Agreement & business dynamics and and the disclosure of its financial information to ensure
to incorporate other relevant provisions to strengthen the that the financial statement is correct, sufficient and
Code. The extant Code is also in compliance with the Listing credible;
Regulations.
2. Recommendation for appointment, remuneration and
The Code encompasses: terms of appointment of auditors of the company;
• General Moral Imperatives; 3. Approval of payment to statutory auditors for any other
Board's Report
services rendered by the statutory auditors;
• Specific Professional Responsibilities; and
4. Reviewing, with the management, the annual financial
• Specific Additional Provisions for Board Members and
statements and auditor's report thereon before
Senior Management Personnel.
submission to the board for approval, with particular
A copy of the Code has been placed on the Company’s reference to:
website www.bhel.com.
i. Matters required to be included in the Director’s
xi. Charter of the Board of Directors Responsibility Statement to be included in the
Board’s report in terms of clause (c) of sub-section
For the purpose of clearly defining the roles and responsibilities
3 of section 134 of the Companies Act, 2013;
of the Board and individual Directors, the Board has laid
down a Charter of the Board of Directors. The Charter ii. Changes, if any, in accounting policies and practices
also articulates BHEL corporate governance objectives and and reasons for the same;
approach.
iii. Major accounting entries involving estimates based
In line with the DPE guidelines, listing agreement and with the on the exercise of judgment by management;
objective of providing the Directors a) insight into guidelines
iv. Significant adjustments made in the financial
and procedures for successful discharge of their statutory
statements arising out of audit findings;
duties, b) better understanding of the business environment
to envision the future and develop strategies and c) need v. Compliance with listing and other legal
based training to meet the specific requirements of the board requirements relating to financial statements;
members, BHEL Board has approved a policy for Training of
vi. Disclosure of any related party transactions;
Directors. It covers both general and specific trainings more
tuned towards Company specific areas. vii. Qualifications in the draft audit report;
xii. Certificate by Company Secretary in Practice 5. Reviewing, with the management, the quarterly
financial statements and auditor’s report thereon before
The Company has received a certificate from a company
submission to the board for approval;
secretary in practice that none of the Directors on the Board
Notice
of the Company have been debarred or disqualified from 6. Reviewing, with the management, the statement of
being appointed or continuing as Director of the Company uses/ application of funds raised through an issue (public
by SEBI/ Ministry of Corporate Affairs or any such statutory issue, rights issue, preferential issue, etc.), the statement
authority. The same is enclosed. of funds utilized for purposes other than those stated in

the offer document/ prospectus/ notice and the report 18. To look into the reasons for substantial defaults in
submitted by the monitoring agency monitoring the the payment to the depositors, debenture holders,
utilization of proceeds of a public or rights issue and shareholders (in case of non-payment of declared
making appropriate recommendations to the Board to dividends) and creditors;
take up steps in this matter;
19. To review the functioning of the Whistle Blower/ Vigil
7. Review and monitor the auditor’s independence and mechanism;
performance, and effectiveness of audit process;
20. To review the Audit paras referred to BLAC by the
8. Approval or any subsequent modification of transactions Internal Audit/ Board and/ or Govt. of India and to
of the company with related parties; provide its suggestions/ guidance/ comments on the
issues referred to it;
9. Scrutiny of inter-corporate loans and investments;
21. Discussion with Statutory Auditors/ Internal Auditors
10. Reviewing the utilization of loans and/ or advances
periodically about internal control systems;
from/investment by the holding company in the
subsidiary exceeding `100 crore or 10% of the asset size 22. To consider and comment on rationale, cost-benefits
of the subsidiary, whichever is lower including existing and impact of schemes involving merger, demerger,
loans/ advances/ investments existing as on the date of amalgamation etc., on the listed entity and its
coming into force of this provision; shareholders;
11. Valuation of undertakings or assets of the company, 23. To seek professional advice from external sources in
wherever it is necessary; appropriate cases, wherever required;
12. Evaluation of internal financial controls and risk 24. The Audit Committee shall also review the following
management systems; information:
13. Reviewing, with the management, performance of i. Management discussion and analysis of financial
statutory and internal auditors, adequacy of the internal condition and results of operations;
control systems;
ii. Statement of significant related party transactions;
14. Reviewing the adequacy of internal audit function,
iii. Management letters / letters of internal control
if any, including the structure of the internal audit
weaknesses issued by the statutory auditors; and
department, staffing and seniority of the official heading
the department, reporting structure coverage and iv. Internal audit reports relating to internal control
frequency of internal audit; weaknesses;
15. Discussion with internal auditors of any significant 25. Carrying out any other function related to the terms of
findings and follow up there on; reference of the Audit Committee as prescribed under
the Companies Act, SEBI Regulations and other statutory
16. Reviewing the findings of any internal investigations
regulations.
by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal ii. Composition of Committee, name of Members &
control systems of a material nature and reporting the Chairperson
matter to the board;
The composition of the Audit Committee is in compliance
17. Discussion with statutory auditors before the audit with Listing Regulations and Companies Act, 2013. The
commences, about the nature and scope of audit as Audit Committee is chaired by an Independent Director.
well as post-audit discussion to ascertain any area of The member Directors comprise of professionals of repute
concern; and standing with background in commerce, finance,
administration and governance.

The Audit Committee was last reconstituted w.e.f. February Audit Committee. The Auditors of the Company and the
14, 2023. The composition of the Audit Committee during Key Managerial Personnel shall have a right to be heard in
the year comprised of the following Directors: the meetings of the Audit Committee when it considers the
Auditor’s Report but shall not have the right to vote.
Annual Review
No. of Meetings
iii. Meetings and Attendance
Name of the Held
Position The Audit Committee met eight times on May 21, 2022,
Director S/ Shri during
Attended August 4, 2022, August 18, 2022, September 22, 2022,
their
November 11, 2022, December 16, 2022, February 10, 2023
tenure
and March 25, 2023 during the year under review. The details
Manish Kapoor, Chairperson 6 6 of attendance of each member is given in the previous table.
Independent
Director (upto 2.4 Nomination and Remuneration Committee
Corporate Profile
January 27, 2023)
i. Remuneration Policy
Dr. K. Sivaprasad, Chairperson 2 2
BHEL being a Public Sector Undertaking, the appointment and
Independent (w.e.f.
remuneration of Chairman & Managing Director/ Functional
Director February 10,
Directors are decided by the Government of India. The terms
2023)
of appointment of Chairman & Managing Director/ Directors,
Member 6 6 as approved by the President of India, provide for fixation of
(upto certain perks and benefits, as per rules of BHEL. The part-
February 9, time non-executive directors are not paid any remuneration
Board's Report
2023) except sitting fees to Independent Directors for attending
meetings of the Board or Committee thereof.
Shashank Priya, Member 7 5
Part-time Official ii. Terms of Reference
Director (upto
In line with the requirements of Section 178 of the Companies
February 14, 2023)
Act, 2013 and Clause 49 of the erstwhile Listing Agreement
Ms. Arti Bhatnagar, Member 1 1 (now Listing Regulations), the Board constituted the
AS & FA, M/o (w.e.f. Nomination & Remuneration Committee (NRC) w.e.f. March
Commerce & February 14, 30, 2015. The terms of reference of the Committee are inline
Industry, Part-time 2023) with the requirements of Section 178 of the Companies Act,
Official Director 2013 as well as the Listing Regulations and are as under:
Raj Kamal Bindal, Member 6 6 1. To identify persons who are qualified to become
Independent directors and who may be appointed in senior
Director (upto management in accordance with the criteria laid down
January 27, 2023) and recommend to the Board for their appointment
and removal and shall specify the manner for effective
Dr. Raj K. Agarwal, Member 3 3
evaluation of performance of Board, its committees and
Independent
individual directors to be carried out either by the Board,
Director (upto
by the Nomination and Remuneration Committee
September 12,
or by an independent external agency and review its
2022)
implementation and compliance;
Dr. Lekhasri Member 4 4
2. To formulate the criteria for determining qualifications,
Samantsinghar, (w.e.f.
positive attributes and independence of a director
Independent November 11,
and recommend to the Board a policy, relating to the
Director 2022)
remuneration of the directors, key managerial personnel
Notice
Director (Finance), Director (IS&P) and Director (E, R&D) are and other employees in compliance with the provisions
permanent invitees. Company Secretary acts as Secretary to of Act/ Listing Regulations/ DPE guidelines;
the Committee. 3. Formulation of criteria for evaluation of Independent
Head of Internal Audit and a representative of the Statutory Directors and the Board;
Auditor may be present as invitees for the meetings of the 4. Devising a policy on Board diversity;

5. To recommend to the Board, nomination of BHEL officials iii. Composition of Committee, name of Members &
in the Boards of its subsidiaries and other government Chairperson
organizations which are required to be approved by the
The Nomination & Remuneration Committee was last
Board of BHEL before further submission to MHI;
reconstituted w.e.f. February 10, 2023. The composition of
6. Oversight of the company’s policy on specific the Committee during the year comprised of the following
remuneration packages, perquisites for Whole-time Directors:
Directors including pension rights and any compensation
payment, which are not fixed by the President of India; No. of Meetings
7. Approve certain perquisites for Whole-time Directors Name of the Held

which are within the powers of Board. Review of Position during
Director S/ Shri Attended
the elements of remuneration package of individual their
directors summarized under major groups, such as tenure
incentives/ benefits, bonus, stock options, pension etc.;
Manish Kapoor, Chairperson 1 1
8. Finalization of policies on perks and benefits and other Independent
related matters which are not fixed by the President of Director (upto
India but within the powers of Board; January 27, 2023)
9. Approval of fixed component and performance linked Dr. Lekhasri Chairperson 0 0

incentives based on the performance criteria; Samantsinghar, (w.e.f.
Independent February 10,
10. Finalization of the criteria of making payments to Non-
Director 2023)
Executive Directors;
Member 1 1
11. Recommendation of fees/ compensation/ stock
(upto
options, if any, to be paid/ granted, to non-executive
February 9,
directors, including independent directors, to the Board
2023)
of Directors/ Shareholders;
Vijay Mittal, JS, Member 1 1
12. Recommendation to the board, all remuneration, in
MHI, Part-time
whatever form, payable to senior management;
Official Director
13. To decide the bonus/ variable pay pool and policy for
Dr. K. Sivaprasad, Member 0 0
its distribution across the executives and non-unionised
Independent (w.e.f.
supervisors;
Director November 11,
14. Carrying out any other function related to the terms of 2022)
reference of the NRC as prescribed under the Companies
Act, SEBI Regulations and other statutory regulations. Aditya Prasad Member 0 0
Sahu, Independent
MCA vide Notification dated June 5, 2015 provided that Director (upto
Section 178 (2), (3) & (4) of the Companies Act, 2013 with May 30, 2022)
regard to performance evaluation of Directors shall not apply
to Government Company. Head (HR), Corporate Office is permanent invitee. Company
Secretary acts as Secretary to the Committee.
iv. Meetings and Attendance
The Nomination & Remuneration Committee met once on
August 3, 2022 during the year under review. The details of
attendance of each member is given in the above table.

v. Details of remuneration of Functional Directors during 2.5 Shareholders Committees
the year 2022-23 are given below: 2.5.1 Stakeholders Relationship Committee
(in `)
Service
i. Terms of Reference
Annual Review
Contract/
Name of the Performance
Sl.
Director Salary Benefits
Other
Linked Total
Notice The Board of Directors on May 12, 2014 reconstituted the
No. Benefits Period
S/Shri Incentives
Severance Shareholders’/ Investors’ Grievance Committee as the
Fee
Stakeholders Relationship Committee (SRC), in line with the
Dr. Nalin
1. 56,31,608 9,85,870 36,039 - 66,53,516 ----
Shinghal requirements of Companies Act, 2013 and erstwhile Listing
Liable to Agreement (now Listing Regulations). The terms of reference
2. Subodh Gupta 45,30,436 9,08,673 3,30,219 - 57,69,328 retire by
rotation of the Committee are in line with the requirements of
Ms. Renuka Liable to
3. Gera, Director 45,82,728 9,19,193 6,53,976 - 61,55,897 retire by
Section 178 of the Companies Act, 2013 as well as the Listing
(IS&P) rotation Regulations and are as under:
Upinder Singh
Corporate Profile
Liable to
Matharu,
4.
Director
45,53,116 9,11,479 6,52,646 - 61,17,241 retire by 1. Resolution of the grievances of the security holders of
rotation
(Power) the Company including complaints related to transfer/
Jai Prakash
Srivastava, transmission of shares, non-receipt of annual report,
Liable to
5.
Director (E,
R&D) (w.e.f.
30,96,690 6,03,811 3,48,844 - 40,49,345 retire by non-receipt of declared dividends, issue of new/
rotation
August 12, duplicate certificates, general meetings etc.;
2022)
2. Reviewing measures taken for effective exercise of

vi. Details of payments made to Independent Directors voting rights by shareholders;
during the year 2022-23 are given below: -
3. Reviewing adherence to the service standards adopted
Board's Report
(in `) by the Company in respect of various services being
rendered by the Registrar & Share Transfer Agent;
Name of the Sitting Fees
Independent Total 4. Reviewing the various measures and initiatives taken by
Board Committee
Directors the Company for reducing the quantum of unclaimed
Meeting Meeting
dividends and ensuring timely receipt of dividend
Shri Raj Kamal 2,70,000/- 2,80,000/- 5,50,000/- warrants/ annual reports/ statutory notices by the
Bindal shareholders of the company;
Shri Manish Kapoor 2,70,000/- 2,40,000/- 5,10,000/- 5. To look into various aspects of interest of shareholders,
debenture holders and other security holders;
Dr. Raj K. Agarwal 1,80,000/- 1,00,000/- 2,80,000/-
6. Carrying out any other function related to the terms of
Dr. K. Sivaprasad 3,30,000/- 3,00,000/- 6,30,000/-
reference of the Committee as prescribed under the
Dr. Lekhasri 3,30,000/- 2,60,000/- 5,90,000/- Companies Act, SEBI Regulations and other statutory
Samantsinghar regulations.
Shri Aditya Prasad 60,000/- 20,000/- 80,000/- ii. Composition of Committee, name of Members &
Sahu Chairperson
During FY 2022-23, Independent Directors were entitled for The Stakeholders Relationship Committee was last
sitting fee @ `30,000/- per Board Meeting and `20,000/- reconstituted w.e.f. February 14, 2023. The composition of
per Board Level Committee Meeting attended by them. the Committee during the year comprised of the following
Independent Directors are not entitled to Stock Option. Directors:
vii. Equity Shares held by Directors

Except as stated hereunder, none of the Directors hold any
equity shares in BHEL (as on March 31, 2023):
Notice
Name of the Director No. of shares held
Dr. Nalin Shinghal (jointly with spouse) 100
The Company has not issued any stock options during the
year 2022-23.

2.5.2 Share Transfer Committee
No. of Meetings
The Share Transfer Committee was constituted by the Board
Name of the Held
Position of Directors on March 25, 1992. Subsequently, the Board of
Attended Directors revised the terms of reference of the Committee
their
w.e.f. August 1, 2014. The Share Transfer Committee
tenure
considers and approves share related matters pertaining to
Manish Kapoor, Chairperson 3 3 transposition, sub-division, consolidation, issue of duplicate
Independent share certificate etc., in physical mode. The Share Transfer
Director (upto Committee was last reconstituted w.e.f. February 6, 2021
January 27, 2023) with Director (Finance) as Chairperson along with Director (E,
R&D) and Director (IS&P) as Members.
Independent (w.e.f. Meetings during 2022-23
Director February 10,
The Share Transfer Committee met seven times during the
2023)
year. The minutes of the Share Transfer Committee meetings
Member 3 3 are periodically placed before the Board of Directors.
(upto
February 9, 2.6 Board Level Committee for Corporate Social
2023) Responsibility
Shashank Priya, Member 4 4 i. Terms of Reference

Part-time Official Pursuant to the DPE Guidelines on Corporate Social
Director (upto Responsibility for CPSEs, the Board constituted the Board
February 14, 2023) Level Apex Committee for CSR on November 25, 2010 for
Ms. Arti Bhatnagar, Member 0 0 proper & periodic monitoring of CSR activities. The Committee
AS & FA, M/o (w.e.f. is presently christened as the Board Level Committee for
Commerce & February 14, Corporate Social Responsibility. In line with Section 135
Industry, Part-time 2023) of the Companies Act, 2013, the terms of reference of the
Official Director Committee are as under:
Director (Finance) Member 4 4 1. Formulation and recommendation to the Board the

Corporate Social Responsibility Policy which shall
Director (IS&P) Member 4 4 indicate the activities to be undertaken by the Company
in areas or subject, specified in Schedule VII to the
Chief Investor Relationship Officer (CIRO) is permanent
Companies Act, 2013;
invitee. Company Secretary acts as Secretary to the
Committee. 2. Recommendation of the Projects, Programs and amount
of expenditure to be incurred on the activities referred
Shri Rajeev Kalra, Company Secretary is the Compliance
to in clause (1);
Officer in terms of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015. 3. Monitoring the Corporate Social Responsibility activities
of the Company from time to time;
4. Ensuring compliance with guidelines on Corporate
The Committee met four times on May 13, 2022, August 3,
Social Responsibility and Sustainable Development
2022, November 11, 2022 and February 10, 2023 during the
issued by the Government of India from time to time.
year under review. The details of attendance of each member
is given in the above table. ii. Composition of Committee, name of Members &
Chairperson
Detail of shareholders’ complaints
The Committee was last reconstituted w.e.f. February 10,
As reported by Alankit Assignments Limited (RTA) to SEBI, 13
2023. The composition of the Committee during the year
complaints were received from the shareholders during the
comprised of the following Directors:
year under review and all complaints were redressed up to
March 31, 2023. No complaint was pending at the end of the
period under report.

ii. Composition of Committee, name of Members &
No. of Meetings
Chairperson
Name of the Held
Position The Committee was last reconstituted w.e.f. February 10,
Attended 2023. The composition of the Committee during the year
Annual Review
their
comprised of the following Directors:
tenure
Manish Kapoor, Chairperson 1 1 Name of the Director

Position
Independent S/ Shri
Director (upto Raj Kamal Bindal, Chairperson
January 27, 2023) Independent Director
Dr. K. Sivaprasad, Chairperson 0 0 (upto January 27, 2023)
Independent (w.e.f.
Corporate Profile
Dr. Lekhasri Samantsinghar, Chairperson (w.e.f.
Director February 10, Independent Director February 10, 2023)
2023)
Member (w.e.f.
Member 1 1 November 11, 2022
(upto upto February 9, 2023)
February 9,
2023) Director (IS&P) Member
Aditya Prasad Member 0 0 Director (E,R&D) Member

Sahu, Independent
Board's Report
Director (HR) Member (w.e.f.
Director (upto November 11, 2022)
May 30, 2022)
Head (HR), Corporate Office is permanent invitee. Company
Director (Finance) Member 1 1
Secretary acts as Secretary to the Committee.
Director (HR) Member 0 0
(w.e.f.
November 11, No meeting of the HR Committee took place during the year.
2022)
2.8 Committee of Independent Directors
Head (CSR), Corporate Office is permanent invitee. Company
Secretary acts as Secretary to the Committee. i. Terms of Reference
iii. Meetings and Attendance The Board, in line with DPE OM dated December 28, 2012 on
Model Role & Responsibilities of Non-Official Directors for
The Committee met one time on August 3, 2022 during the CPSEs, constituted a Committee of Independent Directors,
year under review. The details of attendance of each member which is also in compliance with the requirements of Schedule
is given in the above table. IV of the Companies Act, 2013 and Listing Regulations.
2.7 HR Committee ii. Composition of Committee, name of Members &
Chairperson
The composition of the Committee during the year comprised
The Board constituted the HR Committee on May 31, 2006 of the following Directors
specifically to look into the following matters:
a. Review of present policies with respect to promotion
and reward/ incentive to the Executives.
b. Suggest both short term and long term changes in the
policies to prepare BHEL for the changed/ emerging
Notice
business environment.

Committee is in line with the requirements of Listing
No. of Meetings
Regulations and are as under:
Name of the Held
Position 1. To formulate a detailed risk management policy which
Attended shall include (a) A framework for identification of
their
internal and external risks specifically faced by the listed
tenure
entity, in particular including financial, operational,
Raj Kamal Bindal Chairperson 1 1 sectoral, sustainability (particularly, ESG related risks),
(upto January 27, & Lead information, cyber security risks or any other risk as may
2023) Independent be determined by the Committee, (b) Measures for risk
Director mitigation including systems and processes for internal
control of identified risks, (c) Business continuity plan;
Independent & Lead 2. To ensure that appropriate methodology, processes
Director Independent and systems are in place to monitor and evaluate risks
Director associated with the business of the Company;
(w.e.f.
3. To monitor and oversee implementation of the risk
January 28,
management policy, including evaluating the adequacy
2023)
of risk management systems;
Member 1 1 4. To periodically review the risk management policy, at
(upto January least once in two years, including by considering the
27, 2023) changing industry dynamics and evolving complexity;
Manish Kapoor Member 1 1 5. To keep the board of directors informed about the
(upto January 27, nature and content of its discussions, recommendations
2023) and actions to be taken;
Dr. Raj K. Agarwal Member 0 0 6. The appointment, removal and terms of remuneration
(upto September of the Chief Risk Officer (if any) shall be subject to review
12, 2022) by the Risk Management Committee;
Dr. Lekhasri Member 1 1 7. To seek information from any employees, obtain outside
Samantsinghar legal or other professional advice and secure attendance
Aditya Prasad Member 0 0 of outsiders with relevant expertise, if it considers
Sahu (upto May necessary;
30, 2022) 8. To coordinate its activities with other committees, in
instances where there is any overlap with activities of
such committees, as per the framework laid down by
The Committee met one time on January 10, 2023 during the the Board of Directors;
year under review. The details of attendance of each member
9. Carrying out any other function related to the terms of
is given in the above table.
reference of the Committee as prescribed under the
Companies Act, SEBI Regulations and other statutory
2.9 Board Level Risk Management Committee
regulations.
ii. Composition of Committee, name of Members &
In line with erstwhile Listing Agreement (now SEBI Listing Chairperson
Regulations), the Board of Directors on November 14, 2014
The Committee was last reconstituted on February 14,
constituted the Board Level Risk Management Committee.
2023. The composition of the Committee during the year
The terms of reference of the Board Level Risk Management
comprised of the following members:

# During the meeting held on April 23, 2022, Director (IS&P)
No. of Meetings
was holding additional charge of the post of Director (E, R&D)
Name of the Held
Position * During the meeting held on January 10, 2023, Director
Attended (Power) was holding additional charge of the post of Director
Annual Review
their
(HR).
tenure
Shashank Priya, Chairperson 3 3
Part-time Official The Committee met three times on April 23, 2022, October
Director (upto 18, 2022 and January 10, 2023 during the year under review.
February 14, 2023) The details of attendance of each member is given in the
above table.
Ms. Arti Bhatnagar, Chairperson 0 0
AS & FA, M/o (w.e.f.
Corporate Profile
2.10 Board Level Project Review Committee
Commerce & February 14,
Industry, Part-time 2023) i. Terms of Reference
Official Director
The terms of reference of the Board Level Project Review
Raj Kamal Bindal, Member 3 3 Committee is as under:
Independent a) The Committee shall review the status of all projects
Director (upto with contract value of `500 Crore and above;
January 27, 2023)
b) The Committee shall review the periodical status of the
Board's Report
debtors;
Independent
Director (upto c) The Committee may invite such executives, as it
September 12, considers appropriate to be present at the meetings of
2022) the Committee.
Dr. K. Sivaprasad, Member 1 1 ii. Composition of Committee, name of Members &

Independent (w.e.f. Chairperson
Director November 11, The composition of the Committee during the year comprised
2022) of the following Directors:
Dr. Lekhasri Member 1 1
Samantsinghar, (w.e.f.
Independent November 11,
Director 2022)
Director (Finance) Member 3 3
Director (IS&P)# Member 3 2
Director (Power)* Member 3 2
Director (E, R&D) Member 3 3

#
Director (HR) * Member 1 0

(w.e.f.
November 11,
2022)
Chairman, Risk Member 3 3

Notice
Management
Steering
Committee
Chief Risk Officer Member & 3 3

Convener

No. of Meetings No. of Meetings
Name of the Held Name of the Held

Position during Position during
Director S/ Shri Attended Director S/ Shri Attended
their their
tenure tenure
Vijay Mittal, JS, Chairperson 2 2 Raj Kamal Bindal, Chairperson 3 3

MHI, Part-time Independent
Official Director Director (upto
January 27, 2023)
Raj Kamal Bindal, Member 1 1
Independent Dr. Lekhasri Chairperson 1 1
Director (upto Samantsinghar, (w.e.f.
January 27, 2023) Independent February 10,
Director 2023)
Independent Member 3 3
Director (upto (upto
September 12, February 9,
2022) 2023)
Dr. Lekhasri Member 2 2 Vijay Mittal, JS, Member 4 3

Samantsinghar, MHI, Part-time
Independent Official Director
Director
Aditya Prasad Member 1 1
Director (IS&P) Member 2 2 Sahu, Independent
Director (upto
Director (Power) Member 2 2
May 30, 2022)
Head (PS-Project Management) & Head (Receivable Director (IS&P)* Member 4 4
Management) are Convener of the Committee for the
respective agenda. Director (Finance) is invitee to the Director (Power)# Member 4 4
meetings of the Committee. Heads of respective Business
Director (E, R&D)* Member 4 4
Sectors shall be invited as and when required. Company
Secretary shall act as Secretary to the Committee. Director (HR)# Member 2 2
(w.e.f.
November 11,
The Committee met two times on May 13, 2022 and 2022)
February 21, 2023 during the year under review. The details
# During the meetings held on November 18, 2022 and
of attendance of each member is given in the above table.
February 21, 2023, Director (Power) was holding additional
2.11 Committee on Arbitration & Major Legal Disputes and charge of the post of Director (HR).
Alternative Dispute Resolution
* During the meetings held on May 13, 2022 and August 3,
i. Terms of Reference 2022, Director (IS&P) was holding additional charge of the
post of Director (E, R&D).
The terms of reference of the Committee is to review the
arbitration cases as well as major legal disputes and thereafter Head-Law, Corporate Office is convener of the Committee
apprise the Board accordingly and to act as the Competent and furnishes the required information for review by the
Authority for accepting/rejecting the draft settlement Committee. Head (HR), Corporate Office is permanent
agreement under the BHEL Conciliation Scheme, 2018. invitee.
ii. Composition of Committee, name of Members & iii. Meetings and Attendances
Chairperson
The Committee met four times on May 13, 2022, August 3,
The Committee was last reconstituted w.e.f. February 10, 2022, November 18, 2022 and February 21, 2023 during the
2023. The composition of the Committee during the year year under review. The details of attendance of each member
comprised of the following Directors: is given in the above table.

2.12 General Meetings ii. Non-compliances, penalties & strictures imposed on
the Company related to capital markets during the last
i. Location and time of last three AGMs:
three years
Year Location Date Time There were no cases of non-compliance by the Company
Annual Review
Meeting was held on any matter related to capital markets during the last three
through video- years and no penalties/ strictures were enforced on the
FY 2019-20 conferencing. Company by Stock Exchanges/ SEBI or any other statutory
September 10.00 a.m. authority on any matter related to capital market.
(56th AGM) Deemed venue was
28, 2020
Registered Office of However, the Company received notices from NSE as well
the Company as BSE imposing fine Q2 and Q3 of FY 2022-23 for non-
compliance with the provision of Regulation 17 (1) of the
Meeting was held
SEBI Listing Regulations regarding composition of Board
Corporate Profile
through video-
as number of Independent Directors were less than the
FY 2020-21 conferencing. September
10.00 a.m. minimum numbers prescribed. In response to the notices,
(57th AGM) Deemed venue was 23, 2021
the Company clarified to the Exchanges that the shortfall in
Registered Office of
Independent Directors was not due to any negligence/ default
the Company
of the Company, as the appointment is not within its control.
Meeting was held In view thereof, the Company has requested the Exchanges
through video- to waive-off the fine under their carve-out policies. The
FY 2021-22 conferencing. September matter of appointment of Independent Directors is under
10.00 a.m.
(58th AGM) Deemed venue was 29, 2022 process with Government of India. During FY 2022-23, the
Board's Report
Registered Office of Company also received notices from NSE and BSE imposing
the Company fine for non-compliance with Regulation 57(1) of SEBI Listing
Regulations regarding delay in filing of intimation about
ii. Details of Special Resolutions passed in previous three redemption obligation of Commercial Paper during COVID in
AGMs January, 2021. Based on the representation of the Company
seeking waiver of fine considering exceptional COVID times,
In line with the provisions of Regulation 25(2A) of the SEBI
the Stock Exchanges waived the fine levied.
Listing Regulations, Special Resolutions were passed in the
58th Annual General Meeting held on September 29, 2022 for iii. Vigil Mechanism/Whistle Blower Policy
appointment of Dr. Raj K. Agarwal, Dr. K. Sivaprasad and Dr.
In pursuance of the DPE Guidelines on Corporate Governance
Lekhasri Samantsinghar as Independent Directors.
for Central Public Sector Enterprises and Clause 49 of the
iii. Postal Ballot Listing Agreement between listed Companies & the Stock
Exchanges and Section 177 of the Companies Act, 2013, a
No special resolutions were passed through postal ballot in
detailed Whistle Blower Policy was drafted by the Company
the previous year. There is no proposal for passing any special
and it was duly approved by the Board of Directors in its
resolution through postal ballot during FY 2023-24.
464th meeting held on August 12, 2014. The policy is also in
line with Listing Regulations. Subsequent to this, a Circular
2.13 Disclosures
notifying the Whistle Blower Policy and informing the contact
i. Disclosures on materially significant related party details of the Competent Authority and of Chairman, Audit
transactions that may have potential conflict with the Committee was issued for the notice of all employees.
interests of Company at large
A copy of the Whistle Blower Policy has also been placed
The Company has not entered into any materially significant on the website of the Company www.bhel.com for wide
related party transactions (RPTs) that may have potential publicity. Changes in address, contact number(s) and email
conflict with the interests of the Company at large. address of the Competent Authority and Chairman, Audit
Nonetheless, transactions with related parties have been Committee are being notified from time to time.
disclosed in Notes to the financial statements 2022-23 in the
Notice
The complaints received under the Policy are being processed

Annual Report.
as per the guidelines in this regard and no employee has been
The Company’s policy determining Material Subsidiaries and denied access to the Audit Committee.
policy dealing with Related Party Transactions is available at
https://www.bhel.com/sites/default/files/Policy%20on%20
RPTs%20wef%2001042022_0.pdf

iv. Compliance with the requirements of DPE Guidelines Total fees for all services paid to the statutory auditors
on Corporate Governance, compliance with mandatory and branch auditors are disclosed in Notes to the financial
requirements and adoption of the non-mandatory statements. The auditors of joint venture companies are
Corporate Governance requirements of Listing Regulations appointed separately by them and are not same auditors who
are conducting audit of financial statements of BHEL.
All mandatory requirements of the DPE Guidelines on
Corporate Governance for CPSEs and SEBI (Listing Obligations x. Loans and advances to firms/companies in which
& Disclosure Requirements), 2015 have been duly complied directors are interested
with by the Company as on March 31, 2023. With regard to
NIL
non-mandatory requirements under the Listing Regulations,
BHEL is already in the regime of financial statements with xi. Details of material subsidiaries of the listed entity &
unmodified audit opinion. statutory auditors thereof
No expenditure has been debited in books of accounts which Not Applicable

is not for the purpose of business and no expenses incurred &
xii. Compliance Certificate on Corporate Governance
accounted which are personal in nature and incurred for the
Board of Directors & Top Management. The other expenses Compliance Certificate on Corporate Governance is
(including administrative and other miscellaneous expenses) enclosed.
as a percentage of total expenses have been curtailed to
6.26%. The same has been made possible by various cost 2.14 Means of Communication
reduction measures and stringent budgetary controls.
As required under the Listing Regulations, the Company
v. Presidential Directives issues a notice in advance, to the Stock Exchanges, of the
Board Meetings in which the unaudited/ audited financial
No Presidential Directive was received during the last three
results are due for consideration. Further, the said results are
years i.e. 2020-2021, 2021-22 and 2022-23.
intimated immediately to the Stock Exchanges, after they are
vi. Risk Management taken on record/ approved. These approved financial results
are published within 48 hours of conclusion of the Board
In compliance of SEBI Regulations, 2015 & amendments
Meeting in at least one English daily newspaper circulating
thereof and DPE guidelines on Corporate Governance for
in the whole or substantially the whole of India and in one
CPSEs, BHEL has in place a Board approved Risk Management
daily newspaper published in the language of the region,
Charter & Policy, laying down procedures to inform Board
where the registered office of the Company is situated and
members about the risk assessment, minimization and
also uploaded on the Company’s website (www.bhel.com).
mitigation. An important purpose of the Charter is to
Other information pertaining to shareholders viz. changes
implement a structured and comprehensive risk management
in directorship, details of unpaid dividend, Annual Reports
system across the Company which ensures that the risks
etc., are also displayed on the Company's website. Official
are being properly identified and effectively managed. The
news releases including important events like receipt of
risk management process includes risk identification, risk
major orders, major projects commissioned, important
assessment, risk evaluation, risk mitigation and regular review
collaborations, other material events etc. are posted on
& monitoring. Details are in para 1.15 of 'Risks and Concerns'.
the website of the Company and simultaneously sent to
vii. Sexual Harassment of Women at Workplace the Stock Exchanges. During FY 2022-23, conference calls
(Prevention, Prohibition & Redressal) Act, 2013 were held and detailed result documents & supplementary
information/ presentations were also uploaded post financial
The information on disclosure in relation to Sexual Harassment
result declaration on the stock exchange websites as well
of Women at Workplace (Prevention, Prohibition & Redressal)
as on Company’s website, though BHEL has not made any
Act, 2013 is part of Board’s Report and is available as Annexure
presentation on financial results to analysts or institutional
I to Para 1.12.5.2 ’Safeguard of Women at Workplace’.
investors separately. BHEL has also engaged investors via web
viii. Utilization of funds raised through preferential meetings, face to face interactions and investor conference.
allotment or qualified institutions placement as specified
In compliance with Regulation 46 of the SEBI Listing
under Regulation 32 (7A)
Regulations, the Company disseminates on its website
NIL information which interalia contains, details regarding
composition of various committees of Board of Directors,
ix. Total fees for all services paid by the listed entity and
code of conduct, policy dealing with RPTs, contact information
its subsidiaries, on a consolidated basis, to the statutory
of the designated officials of the Company responsible for
auditor and all entities in the network firm/ network entity
assisting and handling investor grievances etc.
of which the statutory auditor is a part

In pursuance of the ‘’Green Initiatives’’ of the Ministry of
Total Amount of Date on which
Corporate Affairs, Government of India, the Company sends Rate of
Year Dividend Paid Dividend was
the Annual Report and the Notice convening the Annual Dividend
(`in Crore) Declared
General Meeting through email to those shareholders
Annual Review
who have registered their email ids with the Depository 2015-2016
20% 97.90 22.09.2016
Participants/ RTA and have not opted for a physical copy of (Final)
the Annual Report. For continued success of this initiative,
2016-2017
shareholders are requested to register their email ids with 40% 195.81 07.02.2017*
(Interim)
their Depository Participants/ RTA.
2016-2017
39% 190.92 22.09.2017
2.15 General Shareholder Information (Final)
2017-2018
AGM Date Time Venue 40% 293.72 08.02.2018*
Corporate Profile
(Interim)
The Company is conducting
2017-2018
meeting through VC 51% 374.48 19.09.2018
(Final)
pursuant to the MCA
Circular dated December 28, 2018-2019
40% 278.57 05.02.2019*
2022 read with MCA Circular (Interim)
August 24, 10:00
i dated May 5, 2020 and as
2023 AM 2018-2019
such deemed venue for the 60% 417.85 19.09.2019
AGM shall be the registered (Final)
Board's Report
office of the Company. For 2021-2022
details please refer to the 20% 139.28 29.09.2022
(Final)
Notice of this AGM.
2022-2023
ii. Financial year April 01, 2022 to March 31, 2023 20% 139.28 **
(Final)
iii. Record Date Friday, August 11, 2023 * Date of meeting of Board of Directors in which interim
Dividend dividend was declared.
iv. On or before September 22, 2023
payment date ** The Board in its meeting held on May 26, 2023
recommended final dividend for FY 2022-23, subject to
The annual return is available at https://www.bhel.com/
approval of shareholders in AGM.
agm-related
Note:
v. Dividend History:
1) During 2017-18, the Company allotted Bonus equity
The details of dividend paid by BHEL (and not due for transfer
shares to its Shareholders on 03.10.2017 in the ratio of 1:2
to Investor Education Protection Fund) are summarized as
i.e. one fully paid up new Bonus equity share of `2 each
under:
for every two fully paid up equity shares. Consequently,
the total number of shares increased from 244.76 Crore
to 367.14 Crore.
2) During 2018-19, the Company made Buy Back of
18,93,36,645 fully paid up equity shares representing
5.16% of the total issued and paid-up equity share
capital of the Company from its shareholders as on
the record date (i.e. Tuesday, November 06, 2018),
on a proportionate basis, through the “Tender Offer”
process at a price of `86 per equity share payable
in cash for an aggregate consideration of `1628.30
Notice
Crore. Consequently, the total number of shares have

decreased from 367.14 Crore to 348.21 Crore.
3) In case a shareholder has not claimed/received dividend
for any of the last seven years and the same has not yet
been transferred to the Investor Education & Protection

Fund (IEPF), he/ she can claim this unpaid dividend by
Name of the Stock Exchange Stock Code
following the procedure uploaded on the Company’s
website (www.bhel.com). Unclaimed dividend for the 1. BSE Limited
year 2014-15 (Final) has already been transferred to IEPF Phiroze Jeejeebhoy Towers, Dalal Street, 500103
during the year 2022-23. Further, unclaimed dividends Mumbai - 400 001
for the year 2015-16 (Final) and 2016-17 (Interim) are
2 National Stock Exchange of India Limited
due for transfer to IEPF on 24.10.2023 and 08.03.2024
Exchange Plaza, Plot no. C/1, Block - G,
respectively. BHEL
Bandra Kurla Complex, Bandra (East),
4) In respect of dividend/shares which have been transferred Mumbai - 400 051
to IEPF, shareholders can claim the same from IEPF
authority by following the procedure prescribed under In addition, the Commercial Papers issued by the Company
IEPF Authority (Accounting, Audit, Transfer and Refund) are also listed on the BSE & NSE.
Rules, 2016. These Rules are available on the website of b) Payment of Annual Custodian Fee to Depositories
IEPF (www.iepf.gov.in) and company’s website (www.
The Annual Custodian fee has been paid to NSDL and CDSL
bhel.com).
for the financial year 2022-23.
vi. a) Listing on Stock Exchanges and Stock Code
BHEL's equity shares are listed on the following Stock vii. The High, Low, Close & Volume of BHEL shares and
Exchanges for which listing fees for FY 2022-23 has been market index during each month in the financial year
paid: 2022-23 at BSE & NSE are indicated below:
Market Price Data: High, Low, Close during each month in the financial year 2022-23
BSE NSE Market Index (Close)
High Low Close Volume High Low Close Volume
Months (No. of (No. of S&P BSE
NSE NIFTY
(in `) shares in (in `) shares in SENSEX
crore) crore)
Apr-22 58.65 49.50 52.65 4.69 58.65 49.45 52.65 53.10 57060.87 17102.55
May-22 55.80 44.55 51.25 4.99 55.80 44.50 51.20 61.26 55566.41 16584.55
Jun-22 52.80 41.40 45.00 2.88 52.70 41.40 44.95 34.08 53018.94 15780.25
Jul-22 54.75 44.40 53.85 2.76 54.75 44.40 53.85 34.27 57570.25 17158.25
Aug-22 60.65 51.40 58.75 4.83 60.70 51.35 58.80 55.98 59537.07 17759.30
Sep-22 65.05 54.75 59.85 5.21 65.10 54.75 59.90 57.02 57426.92 17094.35
Oct-22 74.70 59.90 74.05 6.08 74.75 59.90 74.05 77.35 60746.59 18012.20
Nov-22 84.85 69.05 83.65 6.24 84.85 69.05 83.70 76.08 63099.65 18758.35
Dec-22 91.45 73.05 79.20 5.54 91.55 73.10 79.20 72.22 60840.74 18105.30
Jan-23 83.50 71.70 78.50 2.67 83.50 71.65 78.40 34.83 59549.90 17662.15
Feb-23 79.65 66.30 69.75 2.10 79.70 66.30 69.80 30.50 58962.12 17303.95
Mar-23 79.90 69.59 70.13 1.85 79.95 69.50 70.05 30.02 58991.52 17359.75
Source: www.bseindia.com / www.nseindia.com
viii. Policy on Insider Trading Insider Trading’ on 26th August, 2002 which was subsequently
revised w.e.f. 29th January, 2009.
BHEL endeavours to preserve the confidentiality of
unpublished price sensitive information and to prevent The Board, in its 469th meeting held on 6th April, 2015,
misuse of such information. For this purpose and in line with approved the ‘Code of Conduct for Regulating & Reporting
the SEBI (Prohibition of Insider Trading) Regulations, 1992, the Trading by Insiders and for Fair Disclosure, 2015’ in line
Company had adopted ‘Code of Conduct for Prevention of with SEBI (Prohibition of Insider Trading) Regulations,

2015. In pursuance to SEBI (Prohibition of Insider Trading) x. Share Transfer System
(Amendment) Regulations, 2018, the Board had also
All share transfer activities under physical segment like
approved the revised BHEL Code of Conduct for Regulating &
receipt/dispatch of documents and their verification are
Reporting Trading by Designated Persons & their Immediate
being carried out by M/s Alankit Assignments Limited. As
Annual Review
Relatives and for Fair Disclosure effective from 01.04.2019.
per SEBI (Listing Obligations and Disclosure Requirements
The objective of the Code is to regulate, monitor and report
(Fourth Amendment) Regulations, 2018, w.e.f. 01.04.2019,
trading by Designated Persons and Immediate Relatives of
requests for effecting transfer (except in case of transmission
Designated Persons towards achieving compliance with SEBI
or transposition) of securities shall not be processed unless
(Prohibition of Insider Trading) Regulations, 2015. The Code
the securities are held in the dematerialized form. In line with
also provides for practices and procedures for fair disclosure
Listing Regulations, share certificates are being issued within
of Unpublished Price Sensitive Information. Head-Corporate
the timeline prescribed for transmission, transposition, sub-
Strategic Management Department is the Chief Investor
division and consolidation.
Relations Officer of the company under this code.
Corporate Profile
xi. Distribution of Shareholding
ix. (A) Registrar & Share Transfer Agent for Equity Shares
(RTA) a. Distribution of shares according to size of holding as
on March 31, 2023
The Company has appointed M/s Alankit Assignments Limited
as its Registrar and Share Transfer Agent (RTA) for handling all No. of equity No. of % of No. of % of
matters relating to the equity shares of BHEL (both physical share(s) held Shareholders Shareholders Shares Shareholding
as well as demat mode). All matters relating to the equity 1 - 500 908986 87.23 93993168 2.70
shares of the Company such as consolidation, loss of share
501 - 1000 67414 6.47 53674161 1.54
certificates, transmission, dematerialization, dividend, change
Board's Report
of address, etc. and related correspondence and queries may 1001 - 2000 34834 3.34 52351850 1.50
be addressed to: -
2001 - 3000 11698 1.12 30228370 0.87
M/s Alankit Assignments Limited 3001 - 4000 4826 0.46 17356850 0.50
Unit: Bharat Heavy Electricals Limited
4E/2, Alankit House, Jhandewalan Extension, 4001 - 5000 4153 0.40 19719931 0.57
New Delhi-110055 5001 - 10000 5846 0.56 43475924 1.25
Tel No.: 011-42541234
Fax No.: 011-23552001 10001 and
4245 0.41 3171263101 91.07
above
Email: [email protected]
Website: www.alankit.com Total 1042002 100.00 3482063355 100.00
(B) Registrar & Share Transfer Agent for Commercial Papers:
M/s KFIN Technologies Limited

Selenium Building, Tower-B,
Plot No 31 & 32, Financial District,
Nanakramguda, Serilingampally,
Hyderabad, Rangareddy, Telangana - 500 032
Toll Free No.: 1800 309 4001
E-mail: [email protected]
Website: www.kfintech.com
RTA’s performance in servicing shareholders has been

satisfactory. All the investor grievances have been promptly
attended to.
Notice

b. Shareholding Pattern as on March 31, 2023 Shareholding Pattern as on 31st March 2023
2023 2022
Category Voting Voting

No. of Shares No. of
strength strength
held Shares held
(%) (%)
Promoters
Holding
Indian Promoters-
President of India
63.17 2199650402 63.17 2199650402
(POI)
Total Promoter
63.17 2199650402 63.17 2199650402
holding
Non-promoters
Holding
Banks, Financial
Institutions,
Insurance
Companies,
11.50 400542743 11.09 386286711
Qualified
Institutional
Buyers, Alternative
Investment Fund
Foreign
Institutional
Investors
(including
8.58 298734941 4.00 139407793 c. List of shareholders who are holding more than 1% of
Qualified Foreign the shares of the Company as on March 31, 2023
Investor)
Mutual Funds and March 31, 2023

4.02 139820242 1.57 54537776
UTI Category & Shareholder's Name Voting No. of
Others strength shares held
Individuals, HUF,
11.48 399645637 18.36 639427887 Promoters
Employees
President of India 63.17 2199650402
Bodies Corporate 0.65 22462202 0.83 28818539
Non-promoters
NRIs & Foreign
0.51 17837995 0.64 22123766
National/ Entity
Life Insurance Corporation of India 10.07 350767507
Trust 0.01 300464 0.02 610839
Fidelity Emerging Markets Fund 1.08 37638600
Clearing Members 0.07 2559156 0.31 10754500
xii. Dematerialisation of shares and liquidity
IEPF 0.01 494773 0.01 435642
In accordance with the directions of the Securities & Exchange
Directors &
0 300 0 300 Board of India (SEBI), trading in BHEL shares by all categories
Relatives
of investors in demat form has been made compulsory w.e.f.
State Govt. 0 14500 0 9200
5th April, 1999. BHEL has executed agreement with both the
Total Non- depositories of the country i.e. National Securities Depository
36.83 1282412953 36.83 1282412953
promoter holding
Limited (NSDL) and Central Depository Services (India) Limited
Grand Total 100 3482063355 100.00 3482063355 (CDSL) for admission of its securities under demat mode. As

on 31st March, 2023, 99.97% (NSDL: 94.09%, CDSL: 5.88%) of the total equity share capital of BHEL is being held in demat mode by
the shareholders. Shares held in physical mode by the shareholders are 0.03%. Shareholding of Hon’ble President of India (being
the Promoter of the Company holding 63.17% of the paid-up share capital of the Company) is also held in dematerialized form.
The International Securities Identification Number (ISIN) allotted to the Company is INE257A01026.
Annual Review
xiii. Outstanding GDRs/ ADRs/ Warrants or any convertible instruments, conversion date and likely impact on equity
NIL
xiv. List of Credit Ratings received during the current FY 2022-23 is disclosed in the main report of the Board of Directors.
xv. Foreign Exchange risk or Commodity price risk and hedging activities
Hedging activities/transactions during the financial year 2022-23 are in line with the Board approved Foreign Exchange Risk
Management Policy.
Corporate Profile
Exposure of the listed entity to commodity and commodity risks faced by the entity throughout the year:
a) Total exposure of the listed entity to commodities in INR: `4311 Crore (approx.)
b) Exposure of the listed entity to various commodities:
Exposure in Exposure in Quantity % of such exposure hedged through commodity derivatives

INR towards terms towards
the particular the particular Domestic market International market
Commodity Name
commodity commodity Total
(in `Crore) (in MT)
Board's Report
OTC Exchange OTC Exchange
(approx.) (approx.)
Steel 3938 422750 -
Copper 566 6386 -
Aluminium 55 1746 -
Nickel 45 205 -
Tin 8 30 -
c) Major Industrial commodities like Steel, Copper, Aluminium etc. are being procured centrally by one of the identified units by
bulking the requirements of various BHEL units, to the extent possible, to derive price advantage. To insulate the Company
against price fluctuations, Framework Agreements with suitable PVC are finalized periodically.
Notice

xvi. Plant locations
BHEL Manufacturing Units

1. Electronics Division (EDN)
Bengaluru 2. Electronics Systems Division (ESD)
3. Solar Business Division (SBD)
Bhopal 4. Heavy Electrical Plant (HEP)
Goindwal 5. Industrial Valves Plant (IVP)
6. Heavy Electrical Equipment Plant (HEEP)
Haridwar
7. Central Foundry Forge Plant (CFFP)
Hyderabad 8. Heavy Power Equipment Plant (HPEP)
Jagdishpur 9. Fabrication, Stamping & Insulator Plant (FSIP)
Jhansi 10. Transformer Plant (TP)
Rudrapur 11. Component Fabrication Plant (CFP)
Ranipet 12. Boiler Auxiliaries Plant (BAP)
13. High Pressure Boiler Plant (HPBP)
Tiruchirappalli
14. Seamless Steel Tube Plant (SSTP)
Thirumayam 15. Power Plant Piping Unit (PPPU)
Visakhapatnam 16. Heavy Plates & Vessels Plant (HPVP)
BHEL- Repair Units
Mumbai 1. Electrical Machine Repair Plant (EMRP)
Varanasi 2. Heavy Equipment Repair Plant (HERP)
xvii. Address for correspondence personnel have affirmed compliance with BHEL’s “Code of
Business Conduct and Ethics” for the financial year 2022-23.
Shareholders can send their queries and any other
correspondence relating to the shares of the Company either
to:
For and on behalf of the Board of Directors of
M/S ALANKIT ASSIGNMENTS LIMITED BHARAT HEAVY ELECTRICALS LTD.
UNIT: BHEL
4E/2, Alankit House Phone: 011-42541234
Jhandewalan Extension Fax: 011-23552001
New Delhi – 110055 Email: [email protected] Dr. Nalin Shinghal
OR
Place: New Delhi
Shri Rajeev Kalra Phone: 011-26001046
Date: July 28, 2023
Company Secretary Fax: 011-66337533
Email: [email protected]
BHEL
Regd. Office: BHEL House,
Siri Fort, New Delhi – 110 049
Note: Shareholders holding shares in electronic mode should
address all correspondence to their respective depository
participants.
Declaration: Pursuant to Listing Regulations, it is hereby
declared that all the Board members and Senior Management

109
AGARWAL S. & ASSOCIATES D-427, 2nd Floor, Palam Extn., Ramphal Chowk,
Sector 7, Dwarka, New Delhi-110075
Company Secretaries Email Id:[email protected]
Phone: 011–45052182;
CERTIFICATE ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE
The Members,
Bharat Heavy Electricals Limited
1. We have examined the compliance of conditions of Corporate Governance by Bharat Heavy

Electricals Limited (CIN: L74899DL1964GOI004281) for the year ended 31st March, 2023, as
prescribed in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Guidelines on Corporate Governance for Central Public Sector Enterprises issued by the
Department of Public Enterprises (DPE), Government of India.
2. The compliance of conditions of Corporate Governance is the responsibility of the management

of the Company. Our examination has been limited to review of procedures and
implementations thereof, adopted by the Company for ensuring the compliance of the
conditions of Corporate Governance as stipulated in the said Regulations and Guidelines. It is
neither an audit nor an expression of opinion on the financial statements of the Company.
3. In our opinion and to the best of our information and according to the explanations given to us,
we certify that the Company has complied with all the applicable conditions of Corporate
Governance as stipulated in the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and DPE Guidelines on Corporate Governance during FY 2022-23 except that
the composition of the Board of Directors was not in compliance with Regulation 17 (1) (a) &
(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and para
3.1.4 & 3.1.2 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 independent
directors on 27.01.2023 resulting in the Company not having requisite number of non-executive
directors on its Board.
ICSI Unique Code : P2003DE049100 MSME Udyog Aadhaar Number: DL10E0008584

4. The Company has explained that the power to appoint directors, including independent
directors in BHEL, being a Government Company, lies with the Government of India by following
Annual Review
the laid down guidelines interalia including approval of the Appointments Committee of
Cabinet. The Company has been in constant communication with the Government of India
requesting for appointment of requisite number of independent directors so as to ensure
compliance with Corporate Governance norms enunciated under the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 as well as the DPE Guidelines on Corporate
Governance. The matter of filling up of these vacancies is under process at the end of
Corporate Profile
Government of India.
5. We further state that such compliance certificate is neither an assurance as to the future
viability of the Company nor the efficiency or effectiveness with which the Management has
conducted the affairs of the Company.
Board's Report
For Agarwal S. & Associates,
Company Secretaries,
ICSI Unique Code: P2003DE049100
Peer Review Cert. No. 2725/2022
GARIMA Digitally signed by
GARIMA GROVER
-s/d-
GROVER 14:55:56 +05'30'
Date: 2023.05.31
Garima Grover
Partner
ACS No.: 27100
CP No.: 23626
Date: 31.05.2023
Place: New Delhi
UDIN: A027100E000433418
Notice
Page 2 of 2

113
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 of
India.
We further report that changes in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the provisions of the Act.
Generally, adequate notice is given to all Directors to schedule the Board Meetings, agenda and
detailed notes on agenda were sent at least seven days in advance and a system exists for seeking
and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting. In case of convening of meeting including sending of agenda
at shorter notice, consent of members present in the meeting were taken.
All the decisions made in the Board/ Committee meeting(s) were carried out with unanimous consent
of all the Directors/ Members present during the meeting.
We further report that there are adequate systems and processes in the Company commensurate
with the size and operations of the Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
We further report that during the audit period, no specific events / actions having a major bearing on
the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines,
standards, etc. referred to above has occurred in the Company.

Peer Review Cert. No.: 2725/2022

GARIMA GROVER
GROVER 13:48:38 +05'30'

Date: 2023.06.15
Garima Grover
Partner
ACS No.: 27100
C.P No. : 23626
UDIN: A027100E000490585
Date:15.06.2023
Place: New Delhi
This report is to be read with our letter of even date which is annexed as “Annexure A” and forms an
integral part of this report.
Page 3 of 4

“Annexure A”
To,
The Members,
Annual Review
Our report of even date is to be read along with this letter.
(i) Maintenance of secretarial records is the responsibility of the management of the

Company. Our responsibility is to express an opinion on these secretarial records, based on
our inspection of records produced before us for audit.
Corporate Profile
(ii) We have followed the audit practices and processes as were appropriate to obtain
reasonable assurance about the correctness of the contents of the secretarial records. The
verification was done on test basis to ensure that correct facts are reflected in secretarial
records. We believe that the processes and practices followed, provide a reasonable basis
for our opinion.
(iii) We have not verified the correctness and appropriateness of financial records and Books of
Accounts of the Company and our report is not covering observations/comments/
Board's Report
weaknesses already pointed out by the other Auditors.
(iv) Wherever required, we have obtained the management representation about the
compliance of laws, rules and regulations and happening of events etc.
(v) The compliance of the provisions of corporate and other applicable laws, rules, regulations,
standards is the responsibility of management. Our examination was limited to the
verification of procedures on test basis and to give our opinion whether Company has
proper Board-processes and Compliance-mechanism in place or not.
(vi) The Secretarial Audit Report is neither an assurance as to future viability of the Company
nor of the efficacy or effectiveness with which the management has conducted the affairs
of the Company.
Peer Review Cert. No.: 2725/2022
GARIMA GROVER
GROVER Date: 2023.06.15

13:49:11 +05'30'
Garima Grover
Partner
ACS No.: 27100
C.P No. : 23626
Notice
Date: 15.06.2023
Place: New Delhi
Page 4 of 4

Annexure – III to the Board's Report:
CEO and CFO Certificate
(in terms of Regulation 17(8) of SEBI (LODR) Regulations 2015)

To,
The Board of Directors
Bharat Heavy Electricals Ltd.,
New Delhi.
a) We have reviewed Financial Statements and the Cash Flow statement of Bharat Heavy Electricals Ltd for the year ended 31st
March, 2023 and that to the best of our knowledge and belief:
i. These statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
ii. These statements together present a true and fair view of the Company’s affairs and are in compliance with the
applicable Ind AS, laws and regulations.
b) There are, to the best of our knowledge and belief, no transactions entered into by the company during the year 2022-23
which are fraudulent, illegal or violative of the Company’s Code of Conduct.
c) We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated
the effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to
the Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we
are aware and the steps we have taken or propose to take to rectify these deficiencies.
d) We have indicated to the Auditors and to the Audit Committee.
i. Significant changes, if any, in internal control over financial reporting during the year 2022-23;
ii. Significant changes, if any, in the accounting policies during the year 2022-23 and the same have been disclosed in the
notes to the financial statements; and
iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the company’s internal control system over financial reporting.
(Jai Prakash Srivastava) (Dr. Nalin Shinghal)

Director (E,R&D) - Additional charge of Chairman & Managing Director
Director Finance & CFO
Place: New Delhi

Date: May 26, 2023

117
SUSTAINABILITY AND
CORPORATE SOCIAL
RESPONSIBILITY

CMD, BHEL inaugurated a plantation drive to develop a Miyawaki forest, the first of its kind in the BHEL Tiruchirappalli complex
Annexure – IV to the Board's through retrofitting emission control systems. Our constant
endeavor to improve performance through R&M as well as
Report: life extension services, providing futuristic technologies such
as AUSC and coal gasification for reducing emissions, offering
Sustainability and CSR state-of-the-art solutions for hydro and nuclear sector as well
as retrofitting of FGD and SCR to reduce emissions of existing
4.1 Sustainability Performance – Environmental power plants are steps to ensure efficient and sustainable use
Our Mission Statement “Providing sustainable business of natural resources.
solutions in the fields of Energy, Industry & Infrastructure” duly Details of some of these initiatives carried out during FY
reflects the tenets of sustainability in our decision-making 2022-23 is given in the sections below.
processes and activities emanating out of those decisions.
To address the Environmental Aspects of Sustainability, 4.1.1 Responsible Material & Natural Resource
business activities are carried out taking utmost care of the Consumption
environment. Responsible material and natural resource
As a responsible corporate citizen, all the natural resources
management, energy management, water management,
for production and consumption are being used with utmost
biodiversity management, carbon management, waste
frugality to minimise the associated environmental impact.
management are the focus areas in our business processes,
The principles of Reduce-Recycle-Reuse are being applied
and our activities are formulated accordingly.
diligently towards achievement of this goal. During the year
Within our value chain, development of cleaner & greener 2022-23, nearly 763 MT of waste was recycled/ reused across
products having lesser environmental footprint over the our premises resulting in avoidance of equivalent amount
entire life cycle is the core to our R&D activities. Our products of new raw material in our processes. BHEL has created an
are having longer lives spanning into decades, and most of in-house portal—Sadupyog—which enables effective cross-
the environmental footprints of these products are from unit utilization of surplus material at manufacturing works as
operations. Our efforts in developing cleaner products is well as project sites and helps in optimizing resources and
helping reduce the environmental footprint of our products fostering sustainability.
through optimum usage of natural resources during their
operation phase; viz., emitting fewer gases, requiring lesser
water and also capturing emissions in the existing plants

4.1.2 Energy Management operation of various furnaces, upgradation from
conventional to regenerative burners-based combustion
As a leading company in the field of Power Generation system, and other projects at CFFP Haridwar are expected
Equipment, we understand the importance of managing to reduce annual electricity demand by 6.63 Million Units
energy in our premises and providing energy efficient per year
Annual Review
technologies / equipment to our customers. Taking projects
related to Energy efficiency / conservation is a regular feature • Installation of single screw compressor in place of higher
in our company and in the recent past, lot of efforts have capacity reciprocating type compressor at 500-ton
been put to identify the projects and execute these projects Manual press at FSIP Jagdishpur which is likely to reduce
in a time bound manner which helped us in demand side annual electricity demand by 59,000 Units per year
management. Our energy intensive units have undergone ISO • Execution of various ENCON projects at Trichy unit
50001 certification and this entire journey of obtaining and resulting in expected annual reduction of 3.6 Lakh units
maintaining our Energy Management System Certification of electricity per year
has resulted in significant reduction in electricity demand and
Corporate Profile
consequent savings added to our bottom line. Further, a 5 MWP Solar Power Plant has been commissioned
during FY 2022-23 at Bhopal unit. Overall during the year
Some of the major energy efficiency projects completed 2022-23, a total of 29.78 million units of green energy were
generated across the organization, taking the overall energy
during the year included:
generating by solar systems during last six years to around
• Structural revamping, with improved insulation and 160 Million Units.
Board's Report
Notice
An initiative for ‘Making BHEL a Green Company’ undertaken by BHEL – including mass plantation drives, create dense urban forests (Miyawaki
forest) in larger BHEL units

4.1.3 Water & Biodiversity Management created within BHEL premises which will store rain water,
Scarce availability of potable water is expected to be a major thereby acting as rainwater harvesting system. Two large size
concern world-over and more so in India. In this context, ponds at Haridwar, one large pond in Bhopal and one pond
as a responsible organization, BHEL is trying to reduce the in R&D Hyderabad have been already created in FY 2023-24,
water consumptions in its processes. We are modifying before the onset of monsoon.
our processes to reduce the water consumption, recycle
the water in processes and reuse the treated water for 4.1.4 Carbon Management
horticulture. As a part of our focused approach towards making our
BHEL units have installed a total of 126 Rainwater Harvesting energy mix sustainable, we are establishing ground mounted
Systems including Rooftop rain water collection pits, solar power plants as well as rooftop solar plants. Now
groundwater recharging pits/pond/lake/wells which we have a total capacity of around 34.89 MW of Solar PV
contribute towards recharging of groundwater. Further, we plants in our premises. During the year 2022-23 itself, we
have 22 Effluent Treatment Plants (ETPs) and 16 Sewage have commissioned a 5 MWP SPV Plants at our HEP Bhopal
Treatment Plants (STPs) to manage our grey water sustainably. Unit. Further, our R&D efforts towards developing renewable
10 manufacturing units of BHEL have been declared as zero energy related products are also helping our customers
liquid discharge entities and remaining are in the process reduce their environmental footprints associated with
of achieving the same. Treated effluent/ sewage is used for electricity generation.
horticulture inside the manufacturing plant & township. This has helped us in carbon footprint avoidance to the tune
During FY 2022-23, our efforts towards increasing our of 26,964 MTCO2-equivalent during FY 2022-23. Further, our
verdant cover continued, resulting in plantation of 49,200 well maintained and ever-increasing verdant cover is also
saplings, also during the last six years, the number of saplings contributing towards carbon sequestration in a considerable
planted stood at more than 2,62,000. manner. Our efforts in the area of energy efficiency/
conservation through projects completed has helped us in
During FY 2023-24, the company has undertaken an initiative reducing our Scope-2 emission.
for ‘Making BHEL a Green Company’. The company has a
target to plant 75,000 saplings during 2023-24. In addition 4.1.5 Waste Management
to mass plantation drives, it is planned to create dense urban
forests (Miyawaki forest) in larger BHEL units. In FY 2022- Considering the size and scope of operations of BHEL,
23, tree plantation in 500 sq. mtr. has been done at Jhansi substantial opportunities exist for minimising the generation
unit using Miyawaki technique. Also, during FY 2023-24, 3 of waste and increasing the recycling/ reuse of waste
acres space in Hairdwar, 1 acre in Hyderabad and 2.75 acres generated. Waste generated in our factories is segregated at
in Trichy have been identified for plantation using Miyawaki source and stored properly for further processing/ disposal.
technique. In addition to this, water bodies are also being Almost all our non-hazardous waste generated is either used
As part of Fit India movement, bicycle rally being organised at BHEL’s HEEP, Haridwar plant

in-house through recycling/ reuse or sent to authorised campuses to promote biodiversity, establishing more water
recyclers for its suitable use. During the year 2022-23, nearly harvesting systems, solid waste management in BHEL
27,615 MT of waste was sold to authorised recyclers. townships to ensure waste segregation at source and
composting of biodegradable wastes, steps to ensure use of
Annual Review
Further, to fight the menace of plastic pollution, a novel
natural sun light in workshops & buildings during daytime so
initiative was taken by the organization to make our township
as to totally eliminate use of electricity for lighting purpose
premises “Single Use Plastic Free” and consequently 14 of our
during day time, and installing more Solar PV power plants
townships have been audited by 3rd party and re-certified as
for captive use to increase use of RE in our operations. (iii)
“Single Use Plastic Free” (SUPF) entities.
BHEL is further in the process of developing a roadmap for
Net Zero.
4.2 Making BHEL a Green Company
Climate change and the need for immediate actions to 4.3 Sustainability Performance – Social
mitigate, has taken the central stage in today’s world. Your
Corporate Profile
BHEL has identified Seven Thrust Areas for carrying out its
company is offering several products and solutions to address
CSR initiatives. These Seven Thrust Areas are elaborated in
these challenges of climate change and is further working
BHEL’s CSR policy and are in line with activities and areas
on many related emerging technologies. At operation front,
mentioned in Schedule VII of the Companies Act, 2013. All CSR
your company has always been an environment conscious
Allocations & Expenditure are as per the BHEL’s CSR Policy,
organization, working relentlessly towards minimizing the
which is compliant with the extant provisions related to CSR
environmental footprint. Now, with an objective to contribute
in the Companies Act, 2013, Schedule VII to the Companies
actively towards India’s agenda on Climate Actions, your
Act, The Companies (CSR Policy) Rules, 2014 and the extant
company is endeavouring to transform itself into a Green
DPE Guidelines for CPSEs’. BHEL has fully complied with DPE
Company. A three-pronged strategy is adopted wherein: (i)
Board's Report
guidelines issued from time to time on CSR expenditure by
Units will be undergoing assessment for Green Company
CPSEs. Brief description of some key interventions during the
Rating (GreenCo Rating). This will give them recognition for
year are given below:
their past achievements and help identify critical areas for
further improvement. (ii) Nine focused sustainability initiatives
Clean India (LoPN Hkkjr)
are identified to be implemented across the company during
FY 2023-24. These include – mass plantation in BHEL • BHEL continued with its CSR program for constructing
campuses, water audit of manufacturing units to ensure Bio-digester toilets in Haridwar & Rishikesh District,
efficient use of water, attaining Zero Liquid Discharge (ZLD) Uttarakhand. 23 clusters of these Bio-digester toilets
status for all Units, energy audit of manufacturing Units to have been completed.
identify new opportunities for energy conservation and
efficient use of energy, creating water bodies within BHEL
Notice
As part of Swachhata Pakhwada, cleaning drive being observed across the company during August 2022

As part of Healthy India campaign, Ayush camp being organised
by BHEL
Purification of Telibandha Lake, (RSCL), including Operation &
Maintenance undertaken by BHEL
Educated India (f'kf{kr Hkkjr)

• Construction of Boys & Girls Hostel buildings at Govt.
Polytechnic, District Nizamabad, Telangana.
Healthy India (LoLFk Hkkjr)

• Financial Support for “Heal-A-Soul IV”- Providing Anti
Haemophilic Factors (AHF) kits to Persons & Children
with Hemophilia (P&Cwh) in various Aspirational Districts
across India.
• Financial support to “Sulabh International Social Service
Organisation” (SISSO) for Construction, Operation and Financial support for “Heal-A-Soul IV” campaign – for providing
Maintenance of Sulabh Toilet Complexes at 12 places in Anti Haemophilic Factors (AHF) kits to Persons & Children with
Hemophilia (P&Cwh) being extended in various aspirational
Varanasi and Chandauli, district of Uttar Pradesh.
Districts across India
• Financial support to “MISSION SMILE” for cleft surgery of
200 cleft patients in District Haridwar, Uttrakhand. • Financial support to District Collector, Suryapet for
setting up 36 Gyms in District Suryapet, Telangana.
• Financial support to HelpAge India in running Mobile
Healthcare Units at Satpura (MP), Bikaner (Rajasthan) Inclusive India (lekos'kh Hkkjr)
& Noida (UP) to provide basic and essential healthcare
• Financial support to Municipal Commissioner, Varanasi
services to poor & needy senior citizens, and other
for installation of Heritage Street Lighting System at
vulnerable citizens.
Varanasi.
• Financial support to NGO - “Cankids KidsCan” for providing
• BHEL continued its Financial support to the “Professional
medical assistance to 200 children aged between 0-19
Assistance for Development Action (PRADAN)” for the
suffering from cancer across India (covering Aspirational
project: Motivating Agrarian communities of Kandhamal
Districts) and medical equipment for hospitals & Palliative
(Odisha) for their Economic Transformation (MARKET) in
Care Centre for the children and a patient’s transport
Aspirational District Kandhamal, Odisha.
ambulance.”
Green India (xzhu Hkkjr)
• Financial support for construction of Tin shed & Chowki
at Govt. Sr. Secondary School, Janglu, District, Bikaner, • Financial support to District Collector, Tiruvallur District
Rajasthan. (Tamil Nadu) for Installation of a Pyrolator unit for solid
waste management at Tiruvallur, Tamil Nadu.
• Financial support for COVID related activities to
underprivileged section of society in Delhi-NCR.

4.4 Annual report for CSR Activities
(as per the requirement of The Companies (CSR Policy) Rules, 2014)
1. Brief outline on CSR Policy of the Company. (Attached as Annexure-A)
Annual Review
2. Composition of CSR Committee
S. Name of Director Designation/ Nature Number of meetings Number of meeting

No. of Directorship of CSR Committee of CSR Committee
Held during the year attended during the year
Manish Kapoor, Independent Director
1 Chairperson 1 1
(upto January 27, 2023)
Chairperson (w.e.f.
0 0
February 10, 2023)
Corporate Profile
2 Dr. K. Sivaprasad, Independent Director
Member (w.e.f.
1 1
February 09, 2023)
Aditya Prasad Sahu, Independent
3 Member 0 0
Director (upto May, 2022)
4 Director (Finance) Member 1 1
Member (w.e.f.
5 Director (HR) 0 0
November 11, 2022)
Board's Report
Head (CSR), Corporate Office is Permanent Invitee. Company Secretary acts as Secretary to the Committee.
3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are
disclosed on the website of the Company
Web-link : --- https://www.bhel.com/csr
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of
sub-rule (3) of rule 8, if applicable.
Not applicable
5. (a) Average net profit of the company as per sub-section (5) of section 135.
₹ (-) 1,301.61 Crore
(b) Two percent of average net profit of the company as per sub-section (5) of section 135.
₹ (-) 26.03 Crore
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years. Nil
(d) Amount required to be set-off for the financial year, if any. Nil
(e) Total CSR obligation for the financial year [(b) + (c) – (d)]. Nil
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project). -- ₹ 571.906 Lakh
(b) Amount spent in Administrative Overheads. -- ₹ 28.595 Lakh
(c) Amount on spent on Impact Assessment, if applicable. Nil
(d) Total amount spent for the Financial Year [(a) + (b) + (c)]*.-- ₹ 600.50 Lakh
(e) CSR amount spent or unspent for the Financial Year:
Notice
Total Amount Amount Unspent (in `)

Spent for
the Financial Total Amount transferred to Unspent CSR Amount transferred to any fund specified under Schedule VII
Year (in `) Account as per Section (6) of Section 135 as per second proviso to sub-section (5) of section 135
Amount (In `Lakh) Date of Transfer Name of the Fund Amount Date of Transfer
Nil Nil N/A Nil Nil N/A
(f) Excess amount for set off, if any:
S. No. Particular Amount (In `Lakh)

(i) Two percent of average net profit of the company as per section 135 (5) (-) 2603.00
(ii) Total amount spent for the Financial Year* 600.50
(iii) Excess amount spent for the financial year [(ii) – (i)] Nil
Surplus arising out of the CSR projects or programmes or activities of the
(iv) Nil
previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii) – (iv)] Nil
* Unspent CSR amount ₹2,126.95 lakh was transferred in FY 2020-21 to a separate bank A/c as per Companies (CSR Policy)
Amendment Rules, 2021. Out of this ₹911.08 Lakh and ₹600.50 Lakh has been spent in FY 2021-22 & FY 2022-23 respectively.
7. (a) Details of Unspent CSR amount for the preceding three financial years:
1 2 3 4 5 6 7 8
S. Preceding Amount Balance Amount Amount transferred to A Amount
No. Financial Transferred to Amount in Spent in Fund as specified remaining Deficiency,
Year (s) Unspent CSR Unspent the under Schedule VII as per to be spent in if any
Account under CSR Account Financial second proviso to sub- succeeding
Sub-Section Under Sub Year (in section (5) of section 135, Financial
(6) of section Section (6) of Rs. Lakh) if any Years
135 (in `Lakh) section 135 Amount Date of (in `Lakh)
(in `Lakh) (in `) Transfer
1 2019-20 Nil - - N/A - 1550.94 Nil
2 2020-21 2126.95 2126.95 1441.99 N/A - 2126.95 Nil
3 2021-22 Nil 2126.95 911.08 N/A - 1215.87 Nil
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the
Financial Year: No
If Yes, enter the number of Capital assets created / acquired: N/A
Furnish the details relating to such asset (s) so created or acquired through Corporate Social Responsibility amount spent in
the Financial Year: N/A
S. Short Particulars of the property Pincode of Date of Amount Details of entity / Authority / beneficiary
No. or Asset (s) [including complete the Property Creation of CSR of the registered owner
address and location of the or Asset (s) amount
property] spent
(1) (2) (3) (4) (5) (6)
CSR Registration
Registered
Number, if Name
address
Applicable
- - - - - - - -
9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub-section (5) of
section 135.
1) As per section 135 (5), two percent of average net profit of the company for FY 2022-23 was ₹ (-)26.03 Crore. Therefore,
CSR budget for FY 2022-23 was Nil
2) CSR spent during FY 2022-23 was out of CSR projects continuing from previous year. As per CSR Policy of BHEL, the
unspent committed amount will not lapse and will be used for CSR projects in future.

10. We hereby declare that the implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy
of the company.
Annual Review
New Delhi Chairman & Managing Director Chairperson
Date: July 28, 2023 (Board Level Committee for CSR)
Corporate Profile
Board's Report
Notice

Annexure – A
BHEL Corporate Social Responsibility (CSR) Policy Outline
CSR Vision:
To be a responsible corporate citizen working towards a better tomorrow.
CSR Mission:
To sincerely & effectively discharge company’s responsibility in the identified CSR thrust areas and other areas listed out in the
Companies Act, 2013.
Objectives of the Policy:

• To define CSR projects or programs which BHEL plans to undertake and which fall within the purview of the Companies Act
2013, the Companies (CSR Policy) Rules, 2014 and the prevailing DPE Guidelines.
• Modalities of execution of such CSR projects or programs.
• Monitoring process of such CSR projects or programs.
• To make the stakeholders aware about CSR practices in BHEL.
• To work keeping in mind the larger objective of sustainable development in conduct of business and in pursuit of CSR
agenda.
Salient Features of the Policy:

• It covers the requirements stated in the Companies Act-2013, the Companies (CSR Policy) Rules-2014 and DPE Guidelines
on CSR & Sustainability;
• It defines the thrust areas for CSR activities, which are based on the activities mentioned in Schedule VII of the Companies
Act, 2013.
• It specifies that 2% of average net profit during the three immediately preceding financial years will be allocated for CSR
activities.
• The company shall give preference to the local areas for spending at least 75% of the amount earmarked for CSR activities.
• A project having total value equal to or more than `1 crore will be termed as Mega project and Impact assessment of such
projects will be mandatorily got done through an external agency.
• There is a provision to reserve 5% of the annual CSR budget as Emergency Fund to take up relief activities for any disaster/
calamity.+
• It stipulates that 5% of total CSR expenditure for the year shall be kept as a reserve for capacity building including administrative
overheads.
• It provides information about organizational structure for CSR in BHEL.
Web-Link to CSR Policy:

BHEL CSR Policy is hosted on www.bhel.com under CSR section and can be accessed through the link
https://www.bhel.com/csr

Annexure-V Business Responsibility & Sustainability Report
SECTION A: GENERAL DISCLOSURES
Annual Review
I. Details of the listed entity
1. Corporate Identity Number (CIN) of the Listed Entity L74899DL1964GOI004281

2. Name of the Listed Entity BHARAT HEAVY ELECTRICALS LIMITED
3. Year of incorporation 13 November 1964
4. Registered office address BHEL House, Siri Fort, New Delhi – 110049
5. Corporate address BHEL House, Siri Fort, New Delhi – 110049
Corporate Profile
6. E-mail [email protected]
7. Telephone 011-66337598
8. Website www.bhel.com
9. Financial year for which reporting is being done FY 2022-23
10. Name of the Stock Exchange(s) where shares are BSE LIMITED (BSE) AND NATIONAL STOCK EXCHANGE OF
listed INDIA LIMITED (NSE)
11. Paid-up Capital ₹ 696.41 Crore
Board's Report
12. Name and contact details (telephone, email address) Ajay Saxena (AGM – Corporate Strategic Management),
of the person who may be contacted in case of any email: [email protected], 011-66337390
queries on the BRSR report
13. Reporting boundary - Are the disclosures under this Standalone basis
report made on a standalone basis (i.e. only for the
entity) or on a consolidated basis (i.e. for the entity and
all the entities which form a part of its consolidated
financial statements, taken together)
II. Products/services
14. Details of business activities (accounting for 90% of the turnover):
S. No. Description of Main Activity Description of Business Activity % of Turnover of the

entity
1 Manufacturing (C) Electrical equipment, General Purpose and Special purpose 100%
Machinery & equipment, Transport equipment (C10)
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. No. Product/Service NIC % of total contributed

Code Turnover
1 Construction and maintenance of power plants, other than hydro-electric power 45207 31%
plants
2 Manufacture of steam or other vapour generating boilers and hot water boilers 28131 26%
Notice
other than central heating boilers

3 Manufacture of steam engines and turbines 29111 8%
4 Manufacture of transformers of all sizes and types & rewinding of electric motors 31102 7%

S. No. Product/Service NIC % of total contributed
Code Turnover
5 Manufacture of electricity distribution and control apparatus [electrical apparatus 31200 7%
for switching or protecting electrical circuits (e.g. switches, fuses, voltage limiters,
surge suppressors, junction boxes etc.) for a voltage exceeding 1000 volts; similar
apparatus (including relays, sockets etc.) for a voltage not exceeding 1000 volts;
boards, panels, consoles, cabinets and other bases equipped with two or more of
the above apparatus for electricity control or distribution of electricity including
power capacitors.]
6 Manufacture of generators/generating sets 31101 4%
7 Manufacture of electric motors : universal AC/DC motors and DC motors or 31103 4%
generators
8 Manufacture of other movers n.e.c. hydraulic turbines, water wheels and their 29119 3%
regulatory machinery; gas turbines for marine propulsion or for use as prime
movers of electric generators or pumps; boiler-turbine set or a stationary steam
engine with integral boiler.
III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total

National 16 29 45
International 0 1 1
The company has 16 manufacturing units (or plants), 2 repair units, 4 regional offices, 8 service centres,
and 15 regional marketing centres. For plant names, Refer ‘Pan India Presence’.
17. Markets served by the entity:

a. Number of locations
Locations Number
National (No. of States) 28 (states), 8 (Union Territories)
International (No. of Countries) 88
b. What is the contribution of exports as a percentage of the total turnover of the entity?
Exports contribute approx. 4.86% of total turnover.
c. A brief on types of customers
In domestic market, BHEL customers span across Government - owned and private owned entities. While in International
market, BHEL customers include from Government ministries or entities, Parastatal agencies, Independent Power
Producers (IPP) and Private companies.
IV. Employees
Refer definitions of ‘Employee’ under Sec 2 (I) of the Industrial Relations Code, 2020 and ‘worker’ under Sec 2 (zr) of the Industrial
Relations Code, 2020 as per the guidelines of BRSR format. Also refer definition of ‘permanent employee’, ‘permanent worker’,
‘other than permanent employee’ and ‘other than permanent worker’ in the guidelines of BRSR format.

18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S. Particulars Total Male Female
Annual Review
No. (A) No. (B) % (B/A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 29536 27790 94.09% 1746 5.91%
2. Other than 15705 14495 92.3% 1210 7.7%
Permanent (E)
3. Total employees 45241 42285 93.47% 2956 6.53%
(D + E)
Corporate Profile
WORKERS
4. Permanent (F) 14986 14592 97.37% 394 2.63%
5. Other than Permanent (G)* 15639 14430 92.27% 1209 7.73%
6. Total workers (F + G) 30625 29022 94.77% 1603 5.23%
b. Differently abled Employees and workers:
S. No. Particulars Total Male Female

(A) No. (B) % (B/A) No. (C) % (C / A)
Board's Report
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 823 801 97.33% 22 2.67%
2. Other than Permanent (E) 47 33 70.21% 14 29.79%
3. Total employees (D + E) 870 834 95.86% 36 4.14%
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 401 398 99.25% 3 0.75%
5. Other than Permanent 47 33 70.21% 14 29.79%
(G)*
6. Total workers (F + G) 448 431 96.21% 17 3.79%
*BHEL awards job/ works contracts to contractors at its various Units/ Divisions/ Departments as per organizational needs. The
number of workers with contractors varies from time to time.
19. Participation/ Inclusion/ Representation of women
Total (A) No. and percentage of Females
No. (B) % (B/A)
Board of Directors 9 3 33.33%
Key Management Personnel 1 0 0%
Status as on March 31, 2023
20. Turnover rate for permanent employees and workers
FY 2022-23 FY 2021-22 FY 2020-21

Notice
Male Female Total Male Female Total Male Female Total

Permanent 4.01% 4.97% 4.15% 5.45% 3.77% 5.29% 4.13% 5.28% 5.17%
employee
Permanent worker 3.21% 7.66% 3.41% 3.71% 6.51% 3.78% 6.71% 4.60% 4.65%

V. Holding, Subsidiary and Associate Companies (including joint ventures)
21. (a) Names of holding / subsidiary / associate companies / joint ventures
S. Name of the holding / Indicate whether % of shares Does the entity indicated at column
No. subsidiary/ associate holding/ Subsidiary/ held by listed A, participate in the Business
companies/ joint ventures (A) Associate/ Joint Venture entity Responsibility initiatives of the listed
entity? (Yes/No)
BHEL-GE GAS TURBINE
1. Joint Venture 49.99% No
SERVICES P. LTD
NTPC BHEL POWER PROJECTS
PVT LTD
RAICHUR POWER
CORPORATION LTD
Refer Annexure - IX to the Board Report - Form AOC - I
VI. CSR Details
22. CSR details

(i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No)
Yes, CSR is applicable for BHEL
(ii) Turnover: `22,136 crore
(iii) Net worth: `27,262 crore
VII. Transparency and Disclosures Compliances
23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
Conduct:
Stakeholder Grievance FY 2022-23 FY 2021-22

group from Redressal Mechanism
whom in Place Number of Number of Remarks Number of Number of Remarks
complaint is (Yes/No) complaints complaints complaints complaints
received (If Yes, then provide filed pending filed pending
web-link for grievance during the resolution during the resolution
redress policy) year at close of the year at close of
year the year
Communities Yes 218 0 - 253 0 -
https://pgportal.gov.in/
Investors No 0 0 - 0 0 -
(other than
shareholders)
Shareholders Yes 13 0 - 37 0 -
The contact details
provided at www.bhel.
com
Employees Yes 196 175 - 55 32 -
and workers (Internal system)
Customers* Yes (Internal system) 466 219 - 509 173 -
Value Chain Yes 92 09 - 68 11 -

Partners https://suvidha.bhel.in/
* System for consolidating customer complaint is under implementation

Refer Annexure – II to Board’s Report, Corporate Governance, Shareholders committee
Refer Annexure – VIII to Board’s Report, Vigil Mechanism
Annual Review
24. Overview of the entity’s material responsible business conduct issues
Financial
Indicate implications
whether of the risk or
S. Material issue risk or Rationale for identifying the risk / In case of risk, approach to opportunity
No. identified opport- opportunity adapt or mitigate (Indicate
unity positive or
(R/O) negative
implications)
Corporate Profile
1. Corporate R Values/ Ethical behavior is acting BHEL believes in conducting Negative
Governance in ways that are consistent with its business in compliance implications
and business how the company views moral with Corporate Governance
ethics principles and values. Not adhering procedures and code of conduct,
can lead to reputational risks arising exemplifies each of the core
due to integrity, inter-personnel values, favourable outcomes
relationships at workplace, conflict to the customers, attractive
of interest and inverse impact on opportunities to the employees,
business. However, BHEL has strong opportunity to the suppliers to
Board's Report
Corporate Governance framework partner the Company in progress
and exhibits the same by stricitly and enrichment of the society.
adhering to statutory norms and BHEL codes/ procedure are in
following the best pracitices. place such as whistleblower
policy, fraud prevention policy,
CDA rules etc. Refer Principle 1.
2. Climate R Reduction in demand for capital Diversifying product portfolio Negative
change good products that emit GHG with new products. implications
emissions. The reduction in
demand is direct consequence to
country level policy changes
3. Sustainable O New business opportunities due - Positive
product & to energy transition and climate implications
services actions by our customers
4. Skilled R New products or business or new Reskilling of workforce and lateral Negative
manpower ways of operating requires new skill hiring of required skill sets. Refer implications
set and competencies Principle 3
5. Customer R Delayed deliveries of projects and Improving customer experience Negative
satisfaction products resulting into customer is ingrained in core values of implications
dissatisfaction and financial liabilities BHEL. Company is changing its
for the company operational ideology from being
“Revenue Centric” to “Project
Centric” supported by Integrated
Project Management System for
project planning and monitoring.
Notice
6. Health and R Managing Safety and Health is an Regular HSE related training Negative
Safety integral part of our business. The to employee and workers are implications
hazards and risks at the workplace(s), provided that including at the
Project site(s), Shop(s) can cause harm induction level as well. Frequent
to employees, workers and other Safety Assessment by HSE Team
stakeholders thereby hampering are conducted. Refer Principle 3
operations.
24. Overview of the entity’s material responsible business conduct issues (Contd.)
Financial
Indicate implications
whether of the risk or
S. Material issue risk or Rationale for identifying the risk / In case of risk, approach to opportunity
No. identified opport- opportunity adapt or mitigate (Indicate
unity positive or
(R/O) negative
implications)
7. Human R Responsibility to identify and BHEL policies are in line with Negative
Rights & manage Human Rights risks in its the principles of Human Rights, implications
Labour operations and supply chain and the constitution of India and
conditions mitigate from adverse risks and applicable laws. The company
consequential damages. has special provisions for ensuring
safeguard of women employees
at the workplace. The company
is one of the founding member
of Global Compact network, India
(GCNI) and is a part of initiatives in
India. Refer Principle 3 and 5
8. Carbon O Opportunity to utilize energy - Positive
Footprint efficiently, fuel switching viz. use implications
of renewable energy, enhanced
green cover, and improved energy
efficiency & conservation to
address cost reduction and climate
change. Refer Principle 6
9. Water O Reduction in impact on the - Positive
and waste environment by efficiently implications
management managing & recycling/ reusing
natural resources like water and
waste generated during operations
10. Equal O Company is an equal opportunity - Positive
opportunity employer and does not discriminate implications
and inclusion on the basis of gender, race, caste,
religion, linguistic, region etc. in
recruitment and employment
relationship guided by GoI policies
leading to a diverse culture and
talent
11. Social O CSR plays a crucial role in uplifting - Positive
engagement societies and communities who implications
& impact are vulnerable & marginalized. It
also improve company's brand
perception; attractiveness to
customers, employees, and
investors; talent retention; and
overall business success.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the
NGRBC Principles and Core Elements.
Annual Review
Disclosure Questions P1 P2 P3 P4 P5 P6 P7* P8 P9
Policy and management processes
1. a.
Whether your entity’s policy/policies cover Y Y Y Y Y Y N Y Y
each principle and its core elements of the
NGRBCs. (Yes/No)
b. Has the policy been approved by the Board? Y Y Y Y Y Y N Y Y

(Yes/No)
Corporate Profile
c. Web Link of the Policies, if available Weblinks have been provided wherever applicable
2. Whether the entity has translated the policy into Y Y Y Y Y Y N Y Y
procedures. (Yes / No)
3.
Do the enlisted policies extend to your value Y N N N N N N N N
chain partners? (Yes/No)
4.
Name of the national and international codes/ e, f a, b, c b, c, f e, f b, d f f a
certifications/labels/ standards (e.g. Forest e, f
Board's Report
Stewardship Council, Fairtrade, Rainforest
Alliance, Trustea) standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity and mapped to
each principle.
5. Specific commitments, goals and targets set by g 50% order g NA g g NA g NA
the entity with defined timelines, if any. book
from
non-fossil
sectors
(FY23-27)
6.
Performance of the entity against the specific Excellent^ 42.7% 100% NA 100% 100% NA 100% NA
commitments, goals and targets along-with during
reasons in case the same are not met. FY23
Governance, leadership and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements (listed entity has flexibility regarding the placement of this disclosure)
Details of the highest authority responsible for Name: Upinder Singh Matharu#
8.
implementation and oversight of the Business Designation: Director (Power), additional charge (HR)
Responsibility policy (ies). DIN: 0009541886
Telephone: 011- 26001002
Email id: [email protected]
9. Does the entity have a specified Committee of the Yes

Notice
Board/ Director responsible for decision making Name: Upinder Singh Matharu#
on sustainability related issues? (Yes / No). If yes, Designation: Director (Power), additional charge (HR)
provide details. DIN: 0009541886
Telephone: 011- 26001002
Email id: [email protected]

Subject for Review Indicate whether review was Frequency (Annually/ Half yearly/
undertaken by Director / Committee Quarterly/ Any other – please specify)
of the Board/Any other Committee
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
10. Details of Review of NGRBCs by the Company:
Performance against above policies and follow Reviews and frequency are provided in Section C of BRSR wherever applicable.
up action
Compliance with statutory requirements of Review and frequency on compliance with statutory requirement are provided in section C
relevance to the principles, and, rectification of of BRSR wherever applicable.
any non-compliances
11. Has the entity carried out independent Policies and procedures of the organization are subject to audits/ reviews during/ by ISO
assessment/ evaluation of the working of its 9001, ISO 14001, ISO 45001, ISO 27001, CAG, Parliamentary Committees, Administrative
policies by an external agency? (Yes/No). If yes, Ministry, etc.
provide name of the agency.
a. ISO 9001; b. ISO 14001; c. ISO 45001; d. ISO 50001; e. ten principles of UNGC on human rights, labour, environment and anti-
corruption; f. DPE guidelines: g. compliance with Govt. and statutory guidelines in this context
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles material to its business No No No No No No No No No
(Yes/No)
The entity is not at a stage where it is in a position to formulate No No No No No No Yes No No
and implement the policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical No No No No No No No No No
resources available for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No) No No No No No No No No No
Any other reason (please specify) No No No No No No No No No
*In respect of Principle 7 referring to Policy Advocacy, although company doesn’t have policy but follows established practices
based on ‘Policy advocacy in responsible manner’
#
Held the charge of Director (HR) upto 3rd July 2023. Mr. Krishan Kumar Thakur, Director (HR) is responsible for implementation
and overstie of BRSR w.e.f 4th July 2023.
^Projected rating/grading for FY 2022-23 as per DPE guidlines for Corporate Governance.

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
Principle 1: Ethics, Transparency and the Code of Business Conduct and Ethics during the relevant
financial year and an affirmation to this effect is given by
Accountability
Annual Review
the Chairman & Managing Director in the Annual Report
The company has a Board approved ‘Code of Business of the Company. For the purpose of the ‘Code of Conduct
Conduct & Ethics’ for all Board Members and senior for Regulating & Reporting Trading by Insiders and for Fair
management personnel in compliance with the requirements Disclosure’, Director (Finance) is the compliance officer of the
of DPE Guidelines on Corporate Governance for CPSEs and Company. In addition, the Chief Investor Relations Officer of
SEBI’s Listing Regulations. the Company ensures compliance of ‘Code of Practice and
Procedure for Fair Disclosure’.
https://www.bhel.com/code-business-conduct-ethics-
board-members-senior-management-personnel In addition, as a part of BHEL’s persisting endeavor to set a
Corporate Profile
high standard of conduct for its employees (other than those
The Board has a laid down charter for the Board of Directors
governed by standing orders), ‘BHEL Conduct, Discipline
which clearly defines the roles and responsibilities of the Board
and Appeal Rules, 1975’ is in place which are updated
and individual Directors. Further, the company endeavors to
periodically. This is augmented by Fraud Prevention Policy
preserve the confidentiality of unpublished price sensitive
and Whistle Blower Policy which not only arms the company
information and prevent abuse of such information. Towards
against unacceptable practices but also acts as a deterrent.
this, a Board approved policy ‘BHEL Code of Conduct for
The Company is subject to RTI Act 2005, audit by Statutory
Regulating & Reporting Trading by Designated Persons &
Auditors and CAG audit under section 139 of the Companies
their Immediate Relatives and for Fair Disclosure’ in line with
Act, 2013.
SEBI (Prohibition of Insider Trading) Regulations - 2015 and
Board's Report
Listing Regulations directs that Board members and other https://www.bhel.com/bhel-fraud-prevention-policy-0
Designated Employees of the company have a duty to
https://www.bhel.com/whistle-blower-policy-0
safeguard the confidentiality of all such information obtained
in the course of their work at the company. The code also In the area of business dealings with vendors and customers,
provides for practices and procedures for fair disclosure of BHEL has signed an MoU with Transparency International
unpublished price sensitive information (UPSI). India (TII) to adopt ‘Integrity Pact’ to make procurement
and contracting more transparent by binding both the
https://www.bhel.com/code-conduct-prevention-insider-
parties to ethical conduct. A panel of three Independent
trading
External Monitors (IEMs) has been appointed to oversee
For effective implementation of the Insider Trading Code, implementation of Integrity Pact in BHEL, with due approval
an internal operating guidelines has been put in place. A of Central Vigilance Commission. Within BHEL, accountability
structured digital database containing names of all ‘Designated is well defined for various functionaries through ‘Delegation
Persons’ along with details of additional persons with whom of Power’. Works Policy, Purchase Policy and other policy
UPSI was shared is in place. Details of initial and continual documents facilitate transparency in BHEL’s working and
disclosures are being submitted by these Designated Persons commitment of highest order of integrity. To enhance
within prescribed timelines. In addition, emails notifying the transparency, visibility and accountability in procurement
‘Designated Persons’ that they are in possession of UPSI and further, BHEL has scaled up its procurements through digital
that they must ensure its confidentiality, is sent simultaneously platform viz. Government e-Marketplace (GeM) from ₹30
along with the emails intimating Closure of Trading Window. lakh in FY 2018-19 to ₹6,189 Crore in FY 2022-23. In addition,
A separate email is also sent to those persons with whom Internal Audit carries out independent audit of purchase/
UPSI is shared by the ‘Designated Persons’. works contracts.
In line with the requirements of DPE Guidelines on Corporate

Essential Indicators
Governance and the Listing Regulations, BHEL provides
compliance reports on quarterly basis to MHI and stock
exchanges. The audit of the Company’s compliance with 1. Percentage coverage by training and awareness
programmes on any of the Principles during the financial
corporate governance requirements as well as secretarial
year:
Notice
audit of BHEL’s compliance with statutory laws is conducted

each year and the said reports form part of the Annual BHEL conducts several training programmes for its employees
Report of the Company and also been informed to the Stock and Directors. These training programmes are curated based
Exchanges. In compliance with the Listing Regulations, all on the requirement and include several topics (which in some
Board members and senior management personnel affirm form covers the nine principles) within a program.
annually that they have fully complied with the provisions of

Segment Total number of Topics / principles covered under %age of persons in respective
training and awareness the training and its impact category covered by awareness
programmes held programmes
Board of Directors 4 Specific Roles and Responsibilities of 100%
an Independent Director, Effectiveness
in Board Meetings, Role of Board Level
Committees and Decision Making,
Business Familiarization
Key Managerial 2 The topics covered were Social Audit, 100%
Personnel (other than POSH & Labour Law, which are part of
Board of directors) the legal framework under which the
Company operates.
Employees other than 1537 Technical, functional, safety, managerial 70.6%
BoD and KMPs & behavioral topics in line with nine
principles
Workers 1537 45.9%
2. Details of fines / penalties /punishment/ award/ practices but also act as a deterrent. The Company is subject
compounding fees/ settlement amount paid in proceedings to RTI Act 2005, audit by Statutory Auditors and CAG audit
(by the entity or by directors / KMPs) with regulators/ law under section 139 of the Companies Act, 2013.
enforcement agencies/ judicial institutions, in the financial
https://www.bhel.com/bhel-fraud-prevention-policy-0
year, in the following format (Note: the entity shall make
disclosures on the basis of materiality as specified in https://www.bhel.com/whistle-blower-policy-0
Regulation 30 of SEBI (Listing Obligations and Disclosure
In the area of business dealings with vendors and customers,
Obligations) Regulations, 2015 and as disclosed on the
BHEL has signed an MoU with Transparency International
entity’s website):
India (TII) to adopt ‘Integrity Pact’ to make procurement
There were no fines/ penalties/punishment/ award/ and contracting more transparent by binding both the
compounding fees/ settlement amount of material nature parties to ethical conduct. A panel of three Independent
paid in proceedings by the directors/ KMPs to regulators/ law External Monitors (IEMs) has been appointed to oversee
enforcement agencies/ judicial institutions during FY 2022- implementation of Integrity Pact in BHEL, with due approval
23. of Central Vigilance Commission. Within BHEL, accountability
is well defined for various functionaries through ‘Delegation
3. Of the instances disclosed in Question 2 above, details of Power’. Works Policy, Purchase Policy and other policy
of the Appeal/ Revision preferred in cases where monetary documents facilitate transparency in BHEL’s working and
or non-monetary action has been appealed- commitment of highest order of integrity. In addition,
Internal Audit carries out independent audit of purchase/
Not Applicable
works contracts.
4. Does the entity have an anti-corruption or anti-bribery
5. Number of Directors/KMPs/employees/workers
policy? If yes, provide details in brief and if available, provide
against whom disciplinary action was taken by any law
a web-link to the policy.
enforcement agency for the charges of bribery/ corruption:
Yes, BHEL has a policy for anti-corruption and anti-bribery.
As a part of BHEL’s persisting endeavor to set a high standard FY 2022-23 FY 2021-22
of conduct for its employees (other than those governed Directors 0 0
by standing orders), ‘BHEL Conduct, Discipline and Appeal
KMPs 0 0
Rules, 1975’ is in place which are updated periodically. This
is augmented by Fraud Prevention Policy and Whistle Blower Employees 4 1
Policy which not only arm the company against unacceptable Workers 0 0

6. Details of complaints with regard to conflict of interest:
FY 2022-23 FY 2021-22
Number Remarks Number Remarks
Annual Review
Number of complaints received in relation to issues of 0 -- 0 --
Conflict of Interest of the Directors
Number of complaints received in relation to issues of 0 -- 0 --
Conflict of Interest of the KMPs (other than directors)
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/
law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest-
Refer Annexure - VIII to the Board’ Report, Vigil Mechanism
Corporate Profile
Leadership Indicators
1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:
%age of value chain

Total number
partners covered (by value
of awareness
Topics / principles covered under the training of business done with
programmes
such partners) under the
held
awareness programmes
Board's Report
1. Awareness on Public Procurement Policy for Micro and Small Enterprises
(MSEs) – Order for MSEs (issued by Ministry of MSME-GoI)
2. Online supplier registration portal
33 20%
3. Government-e-Marketplace (GeM)
4. BHEL General Conditions of Contract
5. BHEL SAMVAAD with domestic industry to identify local sources
2. Does the entity have processes in place to avoid/ Moral Imperatives (ii) Specific Professional Responsibilities as
manage conflict of interests involving members of the well as (iii) Specific Additional Provisions for Board Members
Board? (Yes/No) If Yes, provide details of the same. and Senior Management Personnel. In addition, for the
Yes, the Company has a legal framework in place to avoid/ purpose of clearly defining the roles and responsibilities of
manage conflict of interests involving members of the Board. the Board and individual Directors and to enable the Board to
effectively perform its role, the Board has laid down a Charter
The Companies Act, 2013 and the SEBI (Listing Obligations of the Board of Directors.
& Disclosure Requirements) Regulations, 2015 have detailed
provisions which require the Directors of the Board to disclose Further to these processes which are in place to avoid/
their concern or interest (including their shareholding) in any manage conflict of interests involving members of the Board,
company (ies)/ bodies corporate/ firms/ other association the Independent Directors on the Board are required to
of individuals, periodically as well as whenever there is any comply with certain additional provisions viz., submission
change in the disclosures already made. In this regard, the of declaration of their independence (i.e. they meet the
Directors also submit a certificate to the Board stating that criteria of independence & that they are not aware of any
they do not have any conflict of interest with regard to the circumstance or situation, which exist or may be reasonably
business of the Company on account of their concern/ anticipated, that could impair or impact their ability to
interest and whenever any such conflict/ interest arises they discharge his duties with an objective independent judgment
Notice
shall promptly inform the same to the Board. & without any external influence) and compliance with
Schedule IV of the Companies Act which inter-alia provides
Apart from this, the Company’s Board has approved a ‘Code of for (i) Guidelines of professional conduct (ii) Role & functions
Business Conduct & Ethics for all Board Members and Senior and (iii) Duties for Independent Directors.
Management Personnel’. The Code encompasses (i) General

Principle 2: Product lifecycle sustainability Refer Annexure- VI to Board Report and Annexure-VII to the
Board Report
BHEL is contributing to a greener environment through
development of environment friendly technologies and 2. a.
Does the entity have procedures in place for
improvement in efficiency of equipment. Continuous sustainable sourcing? (Yes/No)
improvement in power cycle efficiency and reduced
b.
If yes, what percentage of inputs were sourced
emissions from coal based power plants have been achieved
sustainably?
over the time by evolution of technology from sub-critical
to supercritical. Attributes of BHEL supplied power plant Yes, BHEL has implemented e-procurement/ GeM
equipment such as lower auxiliary power consumption, as business improvement and sustainable business
higher plant efficiency, lower design heat rate and higher practice. Also supplier registration is done in online
operating availability help in attaining lower life cycle cost. mode only. BHEL sources varied input material and
component from several of its value chain partners
BHEL provides comprehensive solutions for reducing
which are certified and compliant with standards
emissions through supply and commissioning of Flue-
such as ISO 14001, ISO 45001 etc.
gas Desulphurization (FGD) systems, Selective Catalytic
Reduction (SCR) systems, Solar Photovoltaic plants, 100% of our inputs are sourced sustainably.
Electrostatic Precipitators (ESP). BHEL has developed fully
3. Describe the processes in place to safely reclaim your
indigenous Pressurized Fluidized Bed Gasification (PFBG)
products for reusing, recycling and disposing at the end
technology for generating syngas from high ash Indian Coal.
of life, for (a) Plastics (including packaging) (b) E-waste
The syngas further acts as a feed for production of industrial
(c) Hazardous waste and (d) other waste.
chemicals. There is also conscious effort towards reduction
of embodied carbon in products. Company has opted to BHEL products fall under capital goods category where
replace polluting fuels with cleaner ones, e.g., gas is now product life goes beyond 25 years in majority of cases.
used as a source of heat energy (instead of coal earlier) during The market requirement is for extension of the life of
production of products like ceralin, and has also converted products or systems through process of refurbishments.
furnaces to RLNG from LPG at its manufacturing plants. After end of desired life of capital goods, they become
unfit for reuse and hence being disposed as scrap by
Essential Indicators owner of the capital good products.
1. Percentage of R&D and capital expenditure (capex) 4. Whether Extended Producer Responsibility (EPR) is
investments in specific technologies to improve the applicable to the entity’s activities (Yes / No). If yes,
environmental and social impacts of product and processes whether the waste collection plan is in line with the
to total R&D and capex investments made by the entity, Extended Producer Responsibility (EPR) plan submitted
respectively. to Pollution Control Boards? If not, provide steps taken
to address the same.
FY FY Details
2022-23 2021-22 Extended Producer Responsibility (EPR) is not applicable
R&D 3.59% 2.24% More than 50 to BHEL’s activities.
developmental
projects were taken up Leadership Indicators
Capex 10% 2% Major expenditure 1. Has the entity conducted Life Cycle Perspective
reported as : 5 MWp / Assessments (LCA) for any of its products (for
Solar Photovoltaic manufacturing industry) or for its services (for service
(SPV) Power Plant at industry)? If yes, provide details in the following format?
BHEL, Regenerative No, company has not conducted Life Cycle Assessments
Burner commissioned for products.
for bringing in
energy savings and 2. If there are any significant social or environmental
expenditure for SCR concerns and/or risks arising from production or
(Selective catalytic disposal of your products / services, as identified in the
reduction) catalyst Life Cycle Perspective / Assessments (LCA) or through
technology. any other means, briefly describe the same along-with
action taken to mitigate the same.
Not applicable

3. Percentage of recycled or reused input material to total Resource Management policy is to ensure availability of
material (by value) used in production (for manufacturing competent, motivated and effectively contributing human
industry) or providing services (for service industry). resources and to facilitate achievement of their full potential
at all times to realize organizational goals. Company has
Company’s manufacturing processes generate fair
Annual Review
documented HRM policies and rules in the form of a
amount of metal scrap, however engineering measures
‘Personnel Manual’ to ensure transparency and uniformity
are taken to minimize waste generation. The scrap
of implementation for regulating employment relationship,
subsequently undergoes recycling within the company
career growth/ development and employees’ emoluments/
and is reused. For example, Central Foundry Forge
benefits, healthcare and well-being. These policies are
Plant (CFFP) in Haridwar manufactures Steel Forgings
further complemented by a grievance redressal mechanism
and Castings for which steel scrap is a major raw
through two schemes – one for workers and other for
material. Reusable material is also used in packaging
staff & officers. A grievance for the purpose of the scheme
manufactured goods. Where possible, goods are
means a grievance relating to any individual employee arising
Corporate Profile
supplied in specifically designed crates to project sites,
out of the implementation of Company policies/rules or
where the crate material is reused during construction.
Management Decisions. Both these schemes provide for
The value of such recycled/reused items is not being three-tier resolution. Defined timelines are laid down for
captured at the moment. resolution of grievance at each stage. Besides, an appellate
mechanism is also provided under the scheme, in the case
4. Of the products and packaging reclaimed at end of life
of grievance redressal scheme for staff & officers which an
of products, amount (in metric tonnes) reused, recycled,
aggrieved employee can approach in case he/she is not
and safely disposed, as per the following format:
satisfied with the resolution of the grievance.
BHEL’s business is B2B in nature and products/ systems
Board's Report
BHEL has a Health, Safety & Environment (HSE) policy which
we supply fall under capital goods category with long
underlies the commitment of the organization to provide
lifecycle (25 years and beyond). All the associated
safe and healthy work environment to all its employees as
packaging material for supplies become the property
well as other stakeholders giving due consideration for
of our customers that spread across the country and
the safeguard of environment. The policy conforms to the
abroad. In this given situation, it is not feasible to reclaim
requirements of ISO 14001 & ISO 45001 management system
the product (end of life) or packaging material from the
certification standards and can be accessed through the
customer.
link https://www.bhel.com/sites/default/files/HSEPOLICY.
5. Reclaimed products and their packaging materials (as pdf. HSE cells at all units/ divisions implement this policy
percentage of products sold) for each product category. and Corporate HSE department provides strategic guidance
As explained in point 4 (previous point). related to HSE matters at organization level. The HSE policy is
prominently displayed at all workplaces to create awareness
amongst the employees and other stakeholders about the
Principle 3: Employees’ well-being
same and is also translated into local language. Periodic
BHEL has been a frontrunner in the area of human resource audits by internal as well as external agencies are carried
management. The guiding principle for company’s Human out to ensure the effectiveness of ISO 14001 and ISO 45001
management systems implemented at workplaces which
Notice

include the working of the policy and its critical elements.
1. a. Details of measures for the well-being of employees:
% of employees covered by
Total Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category
(A) Number % (B / Number % (C / Number % (D / Number % (E / Number % (F /
(B) A) (C) A) (D) A) (E) A) (F) A)
Permanent employees
Male 27790 27790 100% 27790 100% 0 0 27790 100% 0 0
Female 1746 1746 100% 1746 100% 1746 100% 0 0 1746 100%
Total 29536 29536 100% 29536 100% 1746 5.91% 27790 94.09% 1746 5.91%
Other than Permanent employees*
Male 14495 14430 99.55% 14430 99.55% 0 0.00% 0 0.00% 0 0.00%
Female 1210 1209 99.92% 1209 99.92% 1209 99.92% 0 0.00% 167 13.80%
Total 15705 15639 99.58% 15639 99.58% 1209 7.7% 0 0.00% 167 1.06%
BHEL extends medical facility to its employees and their dependents. The facility is extended to its employees/ spouse on
superannuation/ death as well. Day care facilities are also extended in several premises including BHEL’s manufacturing plants.
*For ‘other than permanent employees’ BHEL extends reimbursement of premium on Medical Insurance/ Accident Insurance in
case of Consultants/ FTA.
b. Details of measures for the well-being of workers:
% of workers covered by
Total Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities
Category (A)
Number % (B / Number % (C / Number % (D / Number % (E / Number % (F /
(B) A) (C) A) (D) A) (E) A) (F) A)
Permanent workers
Male 14592 14592 100% 14592 100% 0 0 14592 100% 0 0
Female 394 394 100% 394 100% 394 100% 0 0 394 100%
Total 14986 14986 100% 14986 100% 394 2.63% 14592 97.37% 394 2.63%
Other than Permanent workers
Male 14430 14430 100% 14430 100% 0 0.00% 0 0.00% 0 0.00%
Female 1209 1209 100% 1209 100% 1209 100% 0 0.00% 167 13.81%
Total 15639 15639 100% 15639 100% 1209 7.7% 0 0.00% 167 1.07%
BHEL extends medical facility to its employees and their dependents. The facility is extended to its employees/ spouse on
superannuation/ death as well. Day care facilities are also extended in several premises including BHEL’s manufacturing plants. In
case of ‘other than permanent workers’, insurance is inbuilt in the Works contract.

2. Details of retirement benefits, for Current FY and Previous Financial Year.
FY 2022-23 FY 2021-22
No. of No. of Deducted and No. of No. of Deducted and
Annual Review
Benefits employees workers deposited with employees workers deposited
covered as covered as the authority covered as covered as with the
a % of total a % of total (Y/N/N.A.) a % of total a % of total authority
employees workers employees workers (Y/N/N.A.)
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI * - - - - - -
Corporate Profile
Others (BHEL Pension 100% 100% NA 100% 100% NA
scheme)
As a retirement benefit apart from PF and Gratuity, all employees and workers are also covered under BHEL pension scheme.
* ESI is not applicable as BHEL extends medical facility scheme to all employees.
3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the
Board's Report
Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes, BHEL’s premises and office are accessible to differently abled employees and workers. The structural modifications and other
changes (in policies, etc.) are made in accordance to the requirements of the Rights of Persons with Disabilities Act, 2016.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.
Yes, the company takes affirmative action in recruitment and promotion for representation of employees from socio-economically
backward sections of society, minorities, disabled personnel and women as mandated by the Govt. of India. The company is an
equal opportunity employer and does not discriminate on the basis of gender, race, caste, religion, linguistic, region etc. in
recruitment and employment relationship.
In case of an employee made to retire on medical grounds prematurely, provisions of The Persons with Disabilities (Equal
Opportunities, Protection of Rights and Full Participation) Act, are kept in consideration. Additionally, Transfer and Job Rotation
policy is inline with Government guidelines for the transfers of PwD employees.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees Permanent workers
Gender Return to work rate Retention rate Return to work rate Retention rate
Male 100% 100% 100% 100%
Female 100% 100% 100% 100%
Total 100% 100% 100% 100%
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker?
If yes, give details of the mechanism in brief.
Notice
There is a well laid out grievance redressal mechanism through two schemes – one for workers and other for staff & officers. A
grievance for the purpose of the scheme means a grievance relating to any individual employee arising out of the implementation
of Company policies/rules or Management Decisions. Both these schemes provide for three-tier resolution. Defined timelines
are laid down for resolution of grievance at each stage. Besides, an appellate mechanism is also provided under the scheme, in
the case of grievance redressal scheme for staff & officers, which an aggrieved employee can approach in case he/she is not

satisfied with the resolution of the grievance. For ‘other than permanent employees/ worker’ the grievances are settled on case
to case basis or through the contractors as the case may be.
Yes/No (If Yes, then give details of the

mechanism in brief)
Permanent Workers Yes
Other than Permanent Workers Yes
Permanent Employees Yes
Other than Permanent Employees Yes
7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
Category FY 2022-23 FY 2021-22

Total No. of employees % (B / A) Total No. of employees % (D / C)
employees / workers in employees / workers in
/ workers in respective / workers in respective
respective category, who respective category, who
category (A) are part of category (C) are part of
association(s) Or association(s) or
Union (B) Union (D)
Total Permanent 29536 29536 100.00% 30758 30758 100.00%
Employees
- Male 27790 27790 100.00% 28925 28925 100.00%
- Female 1746 1746 100.00% 1833 1833 100.00%
Total Permanent 14986 14986 100.00% 15720 15720 100.00%
Workers
- Male 14592 14592 100.00% 15305 15305 100.00%
- Female 394 394 100.00% 415 415 100.00%
BHEL has 29 participative trade unions represented in the apex level bipartite body, namely the Joint Committee for discussing
workers’ and Company’s interest related issues based on the principle of participative management.
All three categories of employees viz. Executives, Supervisors and Workers are represented by their respective associations/ trade
unions. However, since there is no check-off facility to ascertain the exact membership of executive/ supervisor associations and
workers’ unions, a firm number in respect of the three classes of employees is not available.

8. Details of training given to employees and workers:

Total (A) On Health and On Skill Total (D) On Health and On Skill
Annual Review
safety measures upgradation safety measures upgradation
No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F / D)
Employees
Male 27790 3869 13.9% 12182 43.8% 28925 2060 7.1% 6884 23.8%
Female 1746 452 25.9% 1029 58.9% 1833 289 15.8% 851 46.4%
Total 29536 4321 14.6% 13211 44.7% 30758 2349 7.6% 7735 25.1%
Workers
Corporate Profile
Male 14592 1462 10.0% 4031 27.6% 15305 1461 9.5% 3192 20.9%
Female 394 128 32.5% 168 42.6% 415 40 9.6% 133 32.0%
Total 14986 1590 10.6% 4199 28.0% 15720 1501 9.5% 3325 21.2%
9. Details of performance and career development reviews of employees and worker:
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
Board's Report
Employees
Male 27990 27990 100% 28925 28925 100%
Female 1746 1746 100% 1833 1833 100%
Total 29736 29736 100% 30758 30758 100%
Workers
Male 14592 14592 100% 15305 15305 100%
Female 394 394 100% 415 415 100%
Total 14986 14986 100% 15720 15720 100%
10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes,
the coverage such system?
Yes, OHSMS is implemented across the company. Each and every employee of the company is covered under the
Occupational Health and Safety Management System and the system is applicable at all the work places.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the
entity?
Company has strong systems / processes to identify the work-related hazards and assess risks on routine and non-routine
basis. A few are listed below:
HIRA (Hazard Identification and Risk Assessment) – All our units are following HIRA for identifying the risks. Respective
formats are available and this document is reviewed yearly for any changes required.
JSA (Job Safety Analysis) – JSA is a procedure of analyzing jobs for the specific purpose of finding the hazards in each step
Notice
in the job and developing the safety precautions to be adopted. This is done at the stage of planning for job / process.
Method Statement – It outlines the safe way of performing a specific job or accomplishing a project and ensure that
necessary precautions or control measures are communicated to those involved. A method statement provides evidence
that significant health & safety risks have been identified and there are safety systems in place.
c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks.

(Y/N) (Yes/ No)
Yes, a process is in place for workers to report work Yes, employees and workers have access to non-
related hazards and to remove themselves from such occupational medical and healthcare services offered
risks. There is a system to record the Unsafe Act and through company operated health care facilities as well
Unsafe Condition online / offline modes. Workers are as external healthcare facilities which are compensated
trained to observe any of such work-related hazards suitably as per the company policy.
and inform the same through the mode available at
11. Details of safety related incidents, in the following
their respective work premises. Further, systems are
format:
established to reduce/eliminate all these hazards and
risks.
d. Do the employees/ worker of the entity have access
to non-occupational medical and healthcare services?
Safety Incident/Number Category FY 2022-23 FY 2021-22
Lost Time Injury Frequency Rate (LTIFR) (per Employees 0 0

one million-person hours worked)
Workers 0 0
Total recordable work-related injuries Employees 0 0
Workers 47 46
No. of fatalities Employees 0 0
Workers 2 3
High consequence work-related injury or ill- Employees 0 0
health (excluding fatalities)
Workers 45 43
12. Describe the measures taken by the entity to ensure a safe and healthy work place.
BHEL strongly believes in providing safe work place and 13. Number of Complaints on the following made by
safe environment to all its employees and people we employees and workers:
work with. It shows our commitment to develop safety
No complaints have been received for ‘Working
and sustainability culture through active leadership and
conditions’ and ‘Health & Safety’. Systems are in place
by ensuring availability of required resources.
at respective premises of BHEL for registering unsafe
BHEL conducted HSE Trainings / Expert Talks / conditions related to safety. The same is addressed
Webinars on regular basis for their employees and sub- promptly by concerned departments and it is a
contractors’ employees. In addition to the structured continuous ongoing process.
trainings to spread awareness for safe work place, a
14. Assessments for the year:
special campaign was celebrated uniformly across the
organization, as “BHEL Safety Fortnight-2023” starting % of your plants and
from National Safety Day (4th March - 17th March, 2023). offices that were assessed
Other HSE campaigns were also organized on large scale (by entity or statutory
i.e. Environment Awareness Month (5th June – 30th June, authorities or third parties)
2022), Swachhta Pakhwada (16th – 31st August 2022), etc.
To involve the higher-level management participation,
Health and safety 100%
innovative inter-unit competitions other than other
practices
competitions were organized in these campaigns. Working Conditions 100%
BHEL’s is taking every effort to increase its safety 15. Provide details of any corrective action taken or
performance and environmental enrichment. In view underway to address safety-related (if any) and on
of the same, digital HSE systems have been developed. significant risks / concerns arising from assessments
These systems will help to get the data online and of health & safety practices and working conditions.
increase the efficiency of analysis of the HSE data.

Root Cause Analysis (RCA) are conducted for all the 4. Does the entity provide transition assistance
safety-related incidences and suitable corrective actions programs to facilitate continued employability and
are taken. Safety inspections and Safety audits are also the management of career endings resulting from
being done periodically. Corrective actions are being retirement or termination of employment? (Yes/ No)
Annual Review
taken for all the observations given by the auditors
Yes, BHEL provides transition assistance to facilitate
(internal as well as external).
continued employability and the management of career
endings resulting from retirement or termination.
5. Details on assessment of value chain partners:
1. Does the entity extend any life insurance or any
compensatory package in the event of death of (A) All of the BHEL’s value chain partners comes under
Employees (Y/N) (B) Workers (Y/N). relevant labour laws and acts. Because of which both
central and state labour department conduct periodic
Yes, BHEL extends life insurance or compensatory
Corporate Profile
inspections in related to Health and Safety practices
package to employees as well as workers in the event
and working conditions at the premise of value chain
of death.
partners. Any gaps identified are suitability addressed by
2. Provide the measures undertaken by the entity to the partners.
ensure that statutory dues have been deducted and
6. Provide details of any corrective actions taken or
deposited by the value chain partners.
underway to address significant risks / concerns
BHEL’s value chain partners come under PF act and ESI arising from assessments of health and safety practices
act which makes them liable to deposit statutory dues. and working conditions of value chain partners.
Service contract between BHEL and service provider
Board's Report
Refer point 5 (previous point).
contains clause on ‘payment terms’ for necessary
statutory payment like PF, ESI etc. While making
Principle 4: Stakeholder engagement
payments againt services rendered, BHEL verifies
necessary documents and ensures that deposits of BHEL has identified ‘Customers’, ‘Employees’, ‘Shareholders’,
statutory dues like PF, ESI etc. of workers are made by ‘Value chain partners’ and ‘Society’ as its stakeholders.
the contractors. Processes are in place to ensure inclusion of stakeholder
expectations and concerns. Key issues are identified through
3. Provide the number of employees / workers having
stakeholder engagement and addressed by programmes
suffered high consequence work related injury / ill-
or action plans with clear and measurable targets. BHEL
health / fatalities (as reported in Q11 of Essential
units regularly organize vendor meets specifically for MSEs
Indicators above), who have been are rehabilitated
(including local suppliers) towards capacity and capability
and placed in suitable employment or whose family
building, which also provides opportunities for open
members have been placed in suitable employment:
communication, mutual benefit and support. Customers
Nil. There are no eligible cases in respect of employees are engaged through several modes like customer meets,
and worker affected by high consequence work related surveys. Investor community is engaged through meetings,
injury/ ill-health/ fatalities during FY 2022-23 and FY conferences, publications etc and is provided with relevant
2021-22 presented by BHEL Units or Establishment or information pertaining to their investment decisions.
from next of kin of the employee, seeking any form of
BHEL has identified the disadvantaged, vulnerable &
compassionate employment.
marginalized stakeholders in the vicinity of the BHEL
Total no. No. of employees/ manufacturing units / regions / divisions / sites / offices
of affected workers that are and their concerns are addressed as per BHEL’s CSR Policy
employees/ rehabilitated and which is in compliance with section 135 & Schedule VII of the
workers placed in suitable Companies Act 2013 and rules made thereunder as well as
employment or whose DPE Guidelines on CSR & Sustainability for CPSEs.
family members have https://www.bhel.com/sites/default/files/BHEL_CSR_
been placed in suitable
Notice
Policy_2022.pdf
employment
FY FY FY FY Essential Indicators
2022-23 2021-22 2022-23 2021-22
Employees 0 0 0 0
1.
Describe the processes for identifying key stakeholder
Workers 0 0 0 0 groups of the entity.
Stakeholders which directly or indirectly impact BHEL’s
revenue earning capability, its ability to share benefits are identified as key stakeholders. As an example, suppliers or value
chain partners are stakeholders w.r.t procurement and they are identified against registration process and also through pre-
qualification requirements in open tenders.
2.
List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.
Channels of
Whether Frequency of
communication (Email,
identified as engagement (Annually/
SMS, Newspaper, Purpose and scope of
Stakeholder Vulnerable &
Pamphlets, Half yearly/ engagement including key topics
Group
Marginalized and concerns raised during such
Advertisement, Quarterly / others –
Group Community, Meetings, please specify) engagement
Notice Board, Website),
(Yes/No)
Others
Email, Newspaper Engagement is done on All material events affecting the
Advertisement, Disclosure Quarterly, Half yearly Company as well as disclosures
Shareholders No available on Stock & Annual basis as well required under SEBI (Listing
Exchanges & BHEL as whenever the event Obligations & Disclosure
Website occurs Requirements) Regulations, 2015
To make suppliers aware of:
• Public Procurement Policy
(Preference to Make in India)
• MSMED Act
• Import substitution
Email, Advertisement,
Suppliers No Regular
Vendor meets, website etc. • Participating in tenders issued on
GeM portal
• Lodging and tracking grievances
on BHEL’s grievance redressal
portal, SUVIDHA
• BHEL’s quality objectives
Email, Monthly Newsletter, Sharing monthly progress of
Notice Boards, Intranet the company and the business
Employees No Websites, Shop Floor, Shop Monthly verticals, targets, achievements and
Council, Plant Council and department/section level concerns
Joint Council Meetings etc
Assessment of customer needs,
Email, Advertisement,
their requirement vis-à-vis existing
Customers No telephone calls, meetings, Regular
capital good assets, complaints
website etc
resolution, business enquiries etc
Assessing their problems that lead
to their vulnerability and which hold
Communities Yes Meetings, local NGOs Case-to-case basis
back in attaining better standard of
living

Leadership Indicators of various items under “AatmaNirbhar Bharat”, utilization of
solar energy & water harvesting capacity in BHEL’s factories
1. Provide the processes for consultation between
stakeholders and the Board on economic, environmental, & project sites, empowerment of woman employees etc.
and social topics or if consultation is delegated, how is Supplier feedback received during interactions are taken
Annual Review
feedback from such consultations provided to the Board. care like benefits of MSEs through waiver of EMD, purchase
preference etc.
The most important forum for the shareholders of BHEL
to have access to the Board of Directors is the Annual
3. Provide details of instances of engagement with,
General Meeting of the Company. During these meetings,
and actions taken to, address the concerns of vulnerable/
shareholders get opportunity to raise various queries marginalized stakeholder groups.
regarding the performance, strategies and outlook of the
Company. They share their grievances as well as provide For underprivileged section of the community, BHEL spend
valuable feedback regarding improvements in the Company on CSR projects after baseline survey is conducted by local
Corporate Profile
performance, not only from a business perspective but also NGOs. These local NGOs during their baseline surveys
on critical economic, environmental and social topics/ areas. engage with communities and understand their needs and
problems.
BHEL value chain partners have access to Independent
External Monitors (IEMs), who are nominated by CVC for
Principle 5: Human rights
consultation. They also can share their issues with Vigilance
function of company during vendor meets etc. The supplier BHEL policies are in line with the principles of Human
feedback received through such channels are shared during Rights, The Constitution of India, and applicable laws. BHEL
interactions with top management of BHEL. has special provisions for ensuring safeguard of women
employees at the workplace.
Board's Report
2. Whether stakeholder consultation is used to support BHEL is one of the founding member of Global Compact
the identification and management of environmental, and Network, India (GCNI) and is a part of initiatives in India. The
social topics (Yes / No). If so, provide details of instances
company reports its performance on ten principles of UNGC
as to how the inputs received from stakeholders on these
topics were incorporated into policies and activities of the on annual basis since 2001 through Communication on
entity. Progress (CoP) which include BHEL’s commitment towards
upholding the principles of UNGC. This CoP can be accessed
Yes. Stakeholders have provided their support to various through the webpage:
environmental & social endeavors of BHEL viz., indigenization
https://www.bhel.com/commitment-ungc-programme
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following
format:

Total (A) No. of employees / % (B / Total (C) No. of employees % (D /
workers covered (B) A) workers covered (D) C)
Employees
Permanent 29536 3332 11.3% 30758 686 2.2%
Other than permanent 15638 534 3.41% 15620 0 0%
Total Employees 45174 3866 8.56% 46378 686 1.5%
Workers
Permanent 14986 1083 7.2% 15720 205 1.3%
Notice
Other than permanent 15638 534 3.41% 15620 0 0%

Total Workers 30624 1617 5.3% 31340 205 0.65%
Note: For company policy related program, only HR policy related are considered here

2. Details of minimum wages paid to employees and workers, in the following format:
FY 2022-23 FY 2021-22
Equal to Equal to
More than
Minimum Total Minimum More than Minimum Wage
Category Total (A) Minimum Wage
Wage Wage
% (B % (C / % (E /
No. (B) No. (C) Nos. (D) No. (E) No. (F) % (F / D)
/A) A) D)
Employees
Permanent 29536 0 0 29536 100% 30758 0 0 30758 100%
Male 27790 0 0 27790 100% 28925 0 0 28925 100%
Female 1746 0 0 1746 100% 1833 0 0 1833 100%
Other than Permanent 15705 6225 39.64% 9480 60.36% 15324 6916 45.13% 8408 54.87%
Male 14495 5778 39.86% 8717 60.14% 13791 6264 45.42% 7527 54.58%
Female 1210 447 36.94% 763 63.06% 1533 652 42.53% 881 57.47%
Workers
Permanent 14986 0 0 14986 100% 15720 0 0 15720 100%
Male 14592 0 0 14592 100% 15305 0 0 15305 100%
Female 394 0 0 394 100% 415 0 0 415 100%
Other than Permanent 15639 6225 39.80% 9414 60.20% 15260 6916 45.32% 1644 10.77%
Male 14430 5778 40.04% 8652 59.96% 13728 6264 45.63% 7464 54.37%
Female 1209 447 36.97% 762 63.03% 1532 652 42.56% 880 57.44%
3. Details of remuneration/salary/wages, in the following format:

Salary/ wage structure of BHEL employee and workers are set as per the guidelines of DPE.
Male Female
Number Median remuneration/ salary/ Number Median remuneration/
wages of respective category salary/ wages of respective
category
Board of Directors 4 `55,00,000 1 `55,00,000
(BoD)*^
Key Managerial 1 `47,00,000 0 0
Personnel^
Employees other than 27785 `14,00,000 1745 `21,00,000
BoD and KMP^
Workers^ 14592 `11,00,000 394 `12,00,000
*Independent Directors are not considered. Total sitting fees paid to Independent Directors was `26,00,000 in FY 2022-23.
Median sitting fees paid to Independent Director was `5,30,000 in FY 2022-23.
^Payments are excluding PP/SIP/PRP and reimbursements. Data pertains to employees on rolls as on 31 March 2023.
4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
Yes. Gievance Redressal officers are there in each BHEL premise for addressing human rights issues.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
There is a formal well laid out grievance redressal mechanism related to human rights issues. The mechanism provides for three-

tier resolution. First stage with Controlling Officer, second system and it strives to support, protect and promote human
stage with Head of the Department, third stage with Grievance rights to ensure that fair and ethical business and employment
Redressal Committee practices are followed. The company is committed to provide
a safe inclusive environment for one and all, irrespective of
Annual Review
6. Number of Complaints on the following made by the caste, colour, religion, gender, divyangjan etc. The same is
employees and workers: ensured in company's policies, procedures and practices.
2. Details of the scope and coverage of any Human rights
FY 2022-23 FY 2021-22
due-diligence conducted.
Filed Pending Filed Pending
during resolution during resolution Plants and offices are assessed periodically during the
the at the end the year at the end preventive/ statutory audit for ensuring compliance with all
the Statutory laws/ Regulatory requirement and rules made
year of year of year
thereunder. The company also conduct training programs/
Sexual 0 0 3 3 sensitization sessions for its employees and trainees including
Corporate Profile
Harassment apprentices on the subject.
Discrimination 0 0 0 0
3. Is the premise/office of the entity accessible to
at workplace
differently abled visitors, as per the requirements of the
Child Labour 0 0 0 0 Rights of Persons with Disabilities Act, 2016?
Forced Labour/ 0 0 0 0
Involuntary Yes. Refer Principle 3, Essential Indicator no. 3.
Labour 4. Details on assessment of value chain partners:
Wages 0 0 0 0
Value chain partners of BHEL are assessed on Human Rights
Other human criteria by virtue of them coming under labor related laws/
Board's Report
rights related 0 0 0 0 acts/ statutes and these are assessed or inspected by relevant
issues Govt department/ institution.
5. Provide details of any corrective actions taken or
7. Mechanisms to prevent adverse consequences to the underway to address significant risks / concerns arising from
complainant in discrimination and harassment cases. the assessments at Question 4 above.
As a preventive step, identity of complainant is known only to Not applicable
Internal Complaints Committee and is protected. All meetings
in the Enquiry (Complainant and Respondent) are never done
Principle 6: Environment
face to face.
BHEL has a well-established Environmental Management
System (EMS) accredited to ISO 14001. Based on the corporate
8. Do human rights requirements form part of your HSE policy, all manufacturing units and regions have derived
business agreements and contracts? (Yes/No) their HSE systems in line with the requirement of ISO 14001
Yes, human rights requirement forms a part of business ‘Environmental Management System’ standard. The EMS
agreement or contract. The service contracts between BHEL provides an excellent framework to proactively identify and
and service provider contain a clause, meeting human rights manage the risks related to environment in a systematic
requirement like child labour, minimum wages etc. manner. HSE cells at all BHEL units as well as Power Sector
regions oversee the implementation of HSE policy supported
by Corporate HSE department at apex level to provide strategic
9. Assessments for the year:
guidance. Periodic audits are carried out by the certifying body
All BHEL premises are periodically inspected by central and to ensure the compliance to the EMS and requirements of ISO
state labour departments, PF and ESI departments and other 14001 are met. The company’s HSE policy is available on the
government institutions or department for the compliance internet and can be accessed through the web link:
related to relevant law/ act/ statute and identifying gaps.
https://www.bhel.com/sites/default/files/HSEPOLICY.pdf
10. Provide details of any corrective actions taken or BHEL has now undertaken a major initiative for "Making BHEL
underway to address significant risks / concerns arising from a Green Company" as a contribution to India's commitmemt
the assessments at Question 9 above. of Net Zero by 2070.
Notice
No significant risk/ concern was identified. Refer Annexure – VII to the Board’s Report, 7.1 Conservation
of Energy
Refer Annexure – IV to the Board’s Report, 4.2 Making BHEL a
1. Details of a business process being modified / introduced Green Company
as a result of addressing human rights grievances/complaints.
Upholding of Human Rights is central to the Company's value

Parameter FY 2022-23 FY 2021-22
1. Details of total energy consumption (in Joules or (v) Others 0 0
multiples) and energy intensity, in the following format:
Total volume of water with- 18369402 19902956
Parameter FY 2022-23 FY 2021-22 drawal (in kilolitres) (i + ii +
Total electricity consumption 893815 759595 iii + iv + v)
(A) (in Giga Joules) Total volume of water con- 18369402 19902956
Total fuel consumption (B) (in 1758770 1929497 sumption
Giga Joules) (in kilolitres)
Energy consumption 107216 97812 Water intensity per rupee of 0.083 0.098
through other sources (C) (in turnover (Water consumed /
Giga Joules) turnover – Litre per Rs.)
Total energy consumption 2759801 2786904 Water intensity (optional) – -- --
(A+B+C) (in Giga Joules) the relevant metric may be
Energy intensity per rupee of 12.47 13.855 selected by the entity
turnover (in kilo Joule per Rs.
Of turnover) (Total energy No assessment/ evaluation/ assurance has been carried out
consumption/ turnover in by any external agency. Data for FY 2021-22 has been recast.
rupees)
4. Has the entity implemented a mechanism for Zero
Energy intensity (optional) – - - Liquid Discharge? If yes, provide details of its coverage and
the relevant metric may be implementation.
selected by the entity
Yes. As a responsible corporate citizen, BHEL has set up 16
Rise in electricity consumption is due to increase production
Sewage Treatment Plants & 22 Effluent treatment Plants to
activity during FY 2022-23 againt FY 2021-22.
ensure that the water which is discharged from our premises
Note: Indicate if any independent assessment/ evaluation/ conform to the effluent standards as per the statutory
assurance has been carried out by an external agency? (Y/N) requirement and its quantity is minimized to the extent
If yes, name of the external agency. feasible. In this regard, 10 numbers of our manufacturing
units have been declared as zero liquid discharge entities
No assessment/ evaluation/ assurance has been carried out
and remaining are in the process of achieving the same.
by any external agency.
Treated effluent/sewage is used for horticulture inside the
2. Does the entity have any sites / facilities identified manufacturing plant and township.
as designated consumers (DCs) under the Performance,
5. Please provide details of air emissions (other than GHG
Achieve and Trade (PAT) Scheme of the Government of
emissions) by the entity, in the following format:
India? (Y/N) If yes, disclose whether targets set under the
PAT scheme have been achieved. In case targets have not Parameter Unit FY 2022-23 FY 2021-22
been achieved, provide the remedial action taken, if any.
NOx Metric 136.59 144.50
None of the BHEL facilities has been identified as designated Tonne
consumers (DCs) under the Performance, Achieve and Trade SOx Metric 164.28 160.84
(PAT) Scheme. Tonne
Refer Annexure – VII to the Board’s Report, 7.1 Conservation Particulate Matters Metric 344.00 338.91
of Energy (PM) Tonne
Persistent organic Metric 0 0
3. Provide details of the following disclosures related to
pollutants (POC) Tonne
water, in the following format:
Volatile organic Metric 5.17 5.6
Parameter FY 2022-23 FY 2021-22 compounds (VOC) Tonne
Water withdrawal by source (in kilolitres) Hazardous air Metric 9.40 8.45
pollutants (HAP) Tonne
(i) Surface water 0 0
Others – Carbon Metric 0.024 0.023
(ii) Groundwater 5407690 6107432
Monoxide Tonne
(iii) Third party water 12961712 13795524
Increase in emission of SOx, PM and HAP is due to increase
(iv) Seawater / desalinated 0 0 production activity during FY 2022-23 againt FY 2021-22.
water
Air emissions are assessed by external agencies such as

Advance Environment Testing & Research Lab, Gwalior; Refer Annexure – IV to the Board’s Report, 4.1.2 Energy
Tamil Nadu Pollution Control Board, Vellore; PCRI Haridwar; Management
Hubert Enviro Care System (P) Ltd, Chennai; M/s Evergreen
Solutions System Pvt. Ltd., Bengaluru etc. Data for FY 2021- Refer Annexure – IV to the Board’s Report, 4.1.4 Carbon
Management
Annual Review
22 has been recast.
6. Provide details of greenhouse gas emissions (Scope Refer Annexure – VII to the Board’s Report, 7.1 Conservation
1 and Scope 2 emissions) & its intensity, in the following of Energy
format:
8. Provide details related to waste management by the
Parameter Unit FY FY entity, in the following format:
2022-23 2021-22
Parameter FY FY
Total Scope 1 Metric 115744 126295 2022-23 2021-22
emissions tonnes
Total Waste generated (in metric tonnes)
Corporate Profile
(Break-up of the of CO2
GHG into equivalent Plastic waste (A) 68.98 47.36
CO2, CH4, N2O, E-waste (B) 42.17 77.90
HFCs, PFCs,
Bio-medical waste (C) 6.51 9.13
SF6, NF3, if avail-
able) Construction and 0 0
demolition waste (D)
Total Scope 2 Metric 233385 198339
emissions tonnes Battery waste (E) 88.10 77.25
(Break-up of the of CO2
Radioactive waste (F) 0 0
Board's Report
GHG into equivalent
Other Hazardous waste. Please 1278.90 1308.82
CO2, CH4, N2O,
HFCs, PFCs, specify, if any. (G)
SF6, NF3, if avail- Other Non-hazardous waste 45944.15 42494.96
able) generated (H). Please specify, if
any.
Total Scope 1 and g of CO2 1.58 1.61
(Break-up by composition i.e. by
Scope 2 emissions equivalent
materials relevant to the sector)
per rupee of turn- per rupee
over Total (A+B + C + D + E + F + G 47428.81 44015.42
+ H)*
Total Scope 1 and - - -
Scope 2 emission For each category of waste generated, total waste
intensity (optional) recovered through recycling, re-using or other recovery
– the relevant met- operations (in metric tonnes)
ric may be selected Category of waste
by the entity
(i) Recycled 94.06 91.14
Rise in scope 2 emission is due to increase production activity
(ii) Re-used 669.37 797.22
during FY 2022-23 againt FY 2021-22.
(iii) Other recovery operations 0 0
No assessment/ evaluation/ assurance has been carried out
Total 763.44 886.36
by any external agency. Data for FY 2021-22 has been recast.
For each category of waste generated, total waste
7. Does the entity have any project related to reducing disposed by nature of disposal method (in metric tonnes)
Green House Gas emission? If Yes, then provide details.
Category of waste
Yes. BHEL has set up nearly 34.895 MWp of capacity of Solar (i) Incineration 6.92 1.044
Power plants including rooftop ones which has helped the
organization in reducing its electricity consumption. This (ii) Landfilling 1359.29 2875.99
large-scale solarisation has helped us in carbon footprint (iii) Other disposal operations 27615.08 23745.98
avoidance to the tune of 26,964 MTCO2-equivalent during
Notice
Total 28981.29 26623.01

FY 2022-23.
In the table, Plastic waste, e-waste and battery waste reflects
Energy conservation projects are taken up each year at our
the quantity disposed during the year to authorized agency.
units to reduce the energy consumption and thereby reducing
Other disposal operations include the data for sale of the
the carbon emission associated with electricity consumption.
scrap through e-auction/ other means to external agencies

for its recycle/reuse/recovery as well. After considerable environmental approvals / clearances are required, please
amount of scrap is accumulated, it is sold to the agency for specify details in the following format:
final disposal. No assessment/ evaluation/ assurance has
Not applicable
been carried out by any external agency. Data for FY 2021-22
has been recast. 11. Details of environmental impact assessments of
projects undertaken by the entity based on applicable laws,
*Due to increase in production activity, total waste generated
in the current financial year:
during FY2022-23 has gone up.
Not applicable
Refer Annexure – IV to the Board’s Report, 4.1.3 Responsible
Material & Natural Consumption 12. Is the entity compliant with the applicable
environmental law/ regulations/ guidelines in India; such
Refer Annexure – IV to the Board’s Report, 4.1.3 Water and
as the Water (Prevention and Control of Pollution) Act, Air
Biodiversity Management
(Prevention and Control of Pollution) Act, Environment
Refer Annexure – IV to the Board’s Report, 4.2 Waste protection act and rules thereunder (Y/N). If not, provide
Management details of all such non-compliances, in the following
format:
9. Briefly describe the waste management practices
adopted in your establishments. Describe the strategy Yes, BHEL is compliant with the applicable environmental
adopted by your company to reduce usage of hazardous law/ regulations/ guidelines in India
and toxic chemicals in your products and processes and the
practices adopted to manage such wastes. Leadership Indicators
In our manufacturing activity, reduction of waste generation 1. Provide break-up of the total energy consumed (in
is taken as a very important activity and our nesting plan for Joules or multiples) from renewable and non-renewable
cutting of metal sheet is made in such a way to take care sources, in the following format:
of this aspect. However, once the scrap is generated, it is
either used in the local foundry shop for making castings/ Parameter FY FY
forgings or sent to CFFP Haridwar / authorized recycler for 2022-23 2021-22
melting into the furnace for avoidance of new raw material From renewable sources (in Giga Joules)
consumption. Total electricity consumption (A) 107216 97812
Across BHEL, solid wastes/ scrap having resale value Total fuel consumption (B) 0 0
were collected, segregated, stored and sold to authorized Energy consumption through 0 0
recyclers. Some of it not having any resale value is used for other sources (C)
filling up low lying areas. Hazardous wastes/ e-waste are
Total energy consumed from 107216 97812
disposed of as per the stipulations in the relevant statutes.
renewable sources (A+B+C)
The hazardous waste generated at units are disposed as From non-renewable sources (in Giga Joules)
per the regulatory requirement and necessary records for
Total electricity consumption (D) 893815 759595
scrutiny of authority is duly maintained. Hazardous waste
which can be used outside is sent to authorized recyclers. Total fuel consumption (E) 1758771 1929497
Rest of the hazardous waste which is to be incinerated or Energy consumption through 0 0
buried in secured landfill is sent to Treatment Storage and other sources (F)
Disposal Facility (TSDF) of their respective states for ultimate Total energy consumed from 2652586 2689092
disposal of such hazardous wastes. non-renewable sources (D+E+F)
(in Giga Joules)
Refer Annexure – IV to the Board’s Report, 4.1.1 Responsible
Material & Natural Consumption No independent assessment/ evaluation/assurance was
carried out by an external agency
Refer Annexure – IV to the Board’s Report, 4.1.3 Water and
Biodiversity Management 2. Provide the following details related to water
discharged:
Refer Annexure – IV to the Board’s Report, 4.1.5 Waste
Management There are 16 Sewage Treatment Plants (STP) and 22 Effluent
Treatment Plants (ETP) and Oxidation Ponds established
10. If the entity has operations/offices in/around
ecologically sensitive areas (such as national parks, wildlife
sanctuaries, biosphere reserves, wetlands, biodiversity
hotspots, forests, coastal regulation zones etc.) where

at our manufacturing units which give the desired level of These are some of the ways BHEL is trying to reduce Scope-3
treatment to sewage/ trade effluent generated. emissions. However, it is not quantified at the moment.
Parameter FY FY No independent assessment/ evaluation/assurance was

carried out by an external agency.
Annual Review
2022-23 2021-22
Water discharge by destination and level of treatment (in 5. With respect to the ecologically sensitive areas
kilolitres) reported at Question 10 of Essential Indicators above,
(i) To Surface water 0 0 provide details of significant direct & indirect impact of the
entity on biodiversity in such areas along-with prevention
- No treatment 0 0
and remediation activities.
- With treatment – please 0 0
specify level of treatment Not applicable
(ii) To Groundwater 0 0 6. If the entity has undertaken any specific initiatives
Corporate Profile
- No treatment 0 0 or used innovative technology or solutions to improve
resource efficiency, or reduce impact due to emissions /
specify level of treatment effluent discharge / waste generated, please provide details
of the same as well as outcome of such initiatives, as per the
(iii) To Seawater 0 0 following format:
- No treatment 0 0
Sr. Initiative Details of Outcome of
specify level of treatment No undertaken the initiative the initiative
(Web-link,
(iv) Sent to third-parties 0 0
Board's Report
if any, may
- No treatment 0 0 be provided
- With treatment – please 0 0 along-with
specify level of treatment summary)
(v) Others 0 0 1. Upgradation from Not available Potential
- No treatment 0 0 conventional annual
to regenerative electricity
burners-based savings of 6.63
specify level of treatment
combustion Million units
Total water discharged (in 106680 87272 system at CFFP
kilolitres)# Haridwar
#
Treated effluent discharge increased in FY 2022-23 as one 2. Green Not available Significant
of the insulator unit has increased its production activity and Construction reduction in
hence associated effluent discharge. using Bamboo cost to the
No independent assessment / evaluation / assurance was and bottom ash tune of 5-10%
carried out by an external agency. Data for FY 2021-22 has at project sites of in concrete
been recasted. NTPC Kahalgaon production
FGD and NTPC through
3. Water withdrawal, consumption and discharge in areas Talcher reduction
of water stress (in kilolitres): of cement
Not applicable content in
RMC.
4. Please provide details of total Scope 3 emissions & its
intensity, in the following format: As a responsible global citizen, the organization
acknowledges the relation between Green House Gas
At many energy intensive manufacturing units, we have (GHG) emissions and climate change. To address this global
switched over from usage of LPG to RLNG which is being challenge, BHEL has been putting efforts in reducing carbon
Notice
supplied through the pipeline. In this way, we are avoiding footprint of its products and services, thereby enabling the
scope-3 emissions associated with transportation of the fuel customers to generate power in a sustainable manner with
to that extent. Our employees are also encouraged to use car
pool to save energy and avoid Scope-3 emissions.

reduced environmental footprints over the life cycle of the 9. Percentage of value chain partners (by value of
plant. In internal operations also, the organization is putting business done with such partners) that were assessed for
a major thrust in energy efficiency and use of renewable environmental impacts.
energy sources. The company has established a total of
100% of value chain partners were assessed for environmental
approx. 34.895 MWp of Solar Photo Voltaic (ground mounted
impact.
and roof-top) plants at various BHEL locations which have
helped company in making its energy mix more sustainable.
Principle 7: Policy advocacy
Company’s inventory of renewable application also includes
solar water heaters, solar street lighting etc. The Company BHEL is a member of reputed industrial bodies/ chambers.
has also taken a number of projects related to water and BHEL uses various mechanisms of interaction with such
energy conservation, tree plantation, waste management, bodies (e.g. participation in seminars, Council meetings and
resource conservation, etc. participation in working groups etc.) for putting forth its
views and opinions in matter related to policy. Company’s
Refer Annexure – IV to the Board’s Report, Sustainability
interests are represented via inputs to government queries,
Performance – Environment
knowledge sharing, response to surveys, feedback on
Refer Annexure – VII to the Board’s Report, Conservation of industry needs, formulation/ inputs on government policies
Energy like Make in India, Atmanirbhar Bharat, Fiscal budget, Foreign
trade, Export Promotion etc.
7. Does the entity have a business continuity and disaster
management plan? Give details in 100 words/ web link. The company’s views are also presented in various inter-
governmental forums such as Joint Commission Economic
Yes, BHEL has a business continuity and disaster management
Corporation (JCEC), Joint Engineering Committee (JEC),
plan. Same was acted upon during COVID-19 outbreak.
Joint Trade Committee (JTC), Joint Steering Committee
Business continuity plan and/ or disaster management plan
(JSC), Joint Working Group (JWG), etc. to facilitate
were not published on internet.
international trade and collaboration. Company also interacts
8. Disclose any significant adverse impact to the with government bodies like MHI, DPE, DIPP, NITI Aayog and
environment, arising from the value chain of the entity. submits inputs/ suggestions towards policy formulation.
What mitigation or adaptation measures have been taken
by the entity in this regard.
No significant impact came to notice.
1. a. Number of affiliations with trade and industry chambers/ associations.

Nine affiliations
b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to.
S. No. Name of the trade and industry chambers/ associations Reach of trade and industry
chambers/ associations
(State/National)
1 Indian Electrical and Electronics Manufacturers’ Association (IEEMA) National
2 Engineering Export Promotion Council of India (EEPC) National
3 Project Exports Promotion Council of India (PEPC) National
4 Confederation of Indian Industry (CII) National
5 Federation of Indian Chambers of Commerce & Industry (FICCI) National
6 Associated Chambers of Commerce and Industry of India (ASSOCHAM) National
7 Standing Conference of Public Enterprises (SCOPE) National
8 United Nations Global Compact India Network National
9 PHD Chamber of Commerce and Industry International
Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity, based

on adverse orders from regulatory authorities.
No instance of anti-competitive conduct by BHEL has been raised
Annual Review
1. Details of public policy positions advocated by the entity:
S. Public policy advocated Method resorted for such Whether Frequency of Review Web
No. advocacy information by Board (Annually/ Link, if
available in Half yearly/ available
public domain? Quarterly/ Others –
(Yes/No) please specify)
1. To boost (i)Digital Adoption, Through representations/ No -- --
Corporate Profile
(ii) PSE@2047, (iii) Model Council meetings with
Framework for Green PSEs- Industrial Bodies viz. CII, FICCI,
Green Manufacturing and ASSOCHAM, SCOPE etc.
approach towards Net Zero
carbon, (iv) Ease of Doing
Business for PSEs with MSMEs,
etc.
2. Facilitation of international Through representations in No -- --
Board's Report
trade and collaboration various inter-governmental
forums such as Joint
Commission Economic
Corporation (JCEC), Joint
Engineering Committee (JEC),
Joint Trade Committee (JTC),
Joint Steering Committee
(JSC), Joint Working Group
(JWG), etc.
3. To boost Capital Goods Through interaction with No -- --
Sector, Development of Indian Government Ministries viz.
Power Sector, Atmanirbhar MHI, MoP etc.
Bharat initiatives, FTAs etc.
4. Inputs on matters such as Pre-budget memorandum for No - -
Customs, Export promotion & Budget 2023-24
Export incentives
Principle 8: Inclusive growth
BHEL has a well-structured organizational set-up, policy & procedures through which various CSR programmes are implemented.
The CSR policy has identified several activities from Schedule-VII of the Companies Act, 2013 as its thrust areas. The seven
thrust areas defined in CSR Policy are: Clean India, Green India, Healthy India, Heritage India, Inclusive India, Educated India and
Responsible India. The policy is hosted on website link https://www.bhel.com/sites/default/files/BHEL_CSR_Policy_2022.pdf
and is fully in conformance with requirements of Section 135 of the Companies Act 2013.
The policy is implemented through a three-tier structure at the corporate level (Board level committee on CSR, Level-1
committee & Level-2 Committee for screening and approval of proposals) along with unit level CSR Committee. Company
Notice
supports numerous social initiatives across the country targeting poor, needy and economically weaker sections of society
through specialized agencies such as NGOs, govt. agencies etc. in line with the CSR Policy. BHEL has undertaken several CSR
initiatives in the field of health, education, Swachh Bharat, environment protection, vocational training, skill development
programmes, infrastructure development and community development programmes, which ultimately contributed to holistic
welfare and inclusive growth of the society. CSR projects are closely monitored and supervised with an objective to provide
maximum benefits to the society and to ensure fruitfulness of the initiatives undertaken

In supply chain, BHEL has been supporting Micro and Small
FY FY
Enterprises (MSEs) as they tend to employ a larger share of
2022-23 2021-22
the vulnerable sectors of the workforce; such as women,
youth, and people from poorer households. Company has Directly sourced from 32.6% 29%
around 6000 registered MSEs catering to its various Units/ MSMEs/ small producers
Plants / Divisions. MSEs represent approx. 30% of the supplier Sourced directly from within 10% 10%
base of BHEL. As mandated in the Public Procurement Policy the district and neighbouring
for Micro and Small Enterprises (MSEs) Amendment Order, districts
2018 (issued by the Ministry of MSME, Government of India),
more than 25% of BHEL’s total procurement has been made Leadership Indicators
from MSEs in the past few years.
1. Provide details of actions taken to mitigate any
During FY 2022-23, total procurement of goods and services negative social impacts identified in the Social Impact
from MSEs stand at 32.6%, from SC/ ST MSEs at 0.06% and Assessments (Reference: Question 1 of Essential Indicators
from women owned MSEs at 0.41%. Together SC/ ST MSEs above):
and women MSEs constitute less than 2% of total registered
suppliers. The low procurement shares of SC/ ST MSEs and Not applicable
women MSEs are due to the fact that participations of these 2. Provide the following information on CSR projects
type of entities in BHEL tenders are low and moreover such undertaken by your entity in designated aspirational
supplier entities many times do not declare their category districts as identified by government bodies:
status in the tenders/ MSE Certificate despite provision being
Amount spent on CSR projects in designated aspirational
available in the Udyam Registration Certificate.
districts during FY 2022-23 are
Further, BHEL has on-boarded itself on the Trade Receivables
Discounting System (TReDS) platform to support MSEs. S. State Aspirational Amount Spent
Programs are in place to encourage MSE suppliers to use No. District (in `Lakh)
TReDS platform wherein they can avail early payments by 1 Uttarakhand Haridwar 33.60
discounting their bills. During FY 2022-23, the acceptance/
2 Odisha Kandhamal 25.17
rejection of invoices of Goods & Services by BHEL through
TReDS was at 100%. 3 Pan India Pan India 31.28
During the last two years, BHEL has enhanced its procurement 3. (a) Do you have a preferential procurement policy where
through Government e-Marketplace (GeM). During FY 2022- you give preference to purchase from suppliers comprising
23, 58.94% of company’s goods and services have been marginalized / vulnerable groups? (Yes/No)
procured through GeM. Yes
(b) From which marginalized / vulnerable groups do you
1. Details of Social Impact Assessments (SIA) of projects procure?
undertaken by the entity based on applicable laws, in the
current financial year. Company has been supporting Micro and Small Enterprises
(MSEs) as they tend to employ a larger share of the vulnerable
Not applicable sectors of the workforce, such as women, youth, and people
2. Provide information on project(s) for which ongoing from poorer households. Regular Vendor Meets and Supplier
Rehabilitation and Resettlement (R&R) is being undertaken development programs are being organized by BHEL units,
by your entity, in the following format: specifically for MSEs (including local suppliers) as well as
specific to SC/STs, which serve as a platform for identification
Not applicable of needs and formulation of action plan for mutual benefits.
3. Describe the mechanisms to receive and redress Further, preferences as mandated in the Public Procurement
grievances of the community. Policy for Micro and Small Enterprises (MSEs) Order for MSEs
(issued by Ministry of MSME-GoI), are followed.
Community raises their grievances through Centralised Public
Grievance Redress and Monitoring System (CPGRAMS)/
(c) What percentage of total procurement (by value) does
Public Grievance Portal which are then assigned to Public it constitute?
Grievance Officer in BHEL.
BHEL procured 32.6% of its procurement from MSMEs in FY
4. Percentage of input material (inputs to total inputs by 2022-23.
value) sourced from suppliers:

4. Details of the benefits derived and shared from the Principle 9: Customer value
intellectual properties owned or acquired by your entity (in Essential Indicator
the current financial year) based on traditional knowledge:
1. Describe the mechanisms in place to receive and
Company does not own or acquired intellectual property
Annual Review
respond to consumer complaints and feedback.
based on traditional knowledge. However, company
has invested in Research & Development in the field of Customer value is an integral part of BHEL’s culture which
engineering which has yielded intellectual properties owned is reflected in our Vision, Mission and Values statement.
by BHEL. During FY2022-23, BHEL has filed 503 patent & Company is constantly working towards creating value for
Copyrights. customers through products and services. Every product
offering of BHEL is labelled with detailed product labels/
The revenue (benefit) earned by BHEL from patents & name plates/ test certificates as per the requirement and
copyrights cannot be quantified in isolation as these patents terms of contracts with customers besides the mandatory
& copyrights result out of the processes, technologies & statutory requirements.
Corporate Profile
products development. These IPRs result into competitiveness
of BHEL products and expand product offerings. It also Complaints of customers are received through various
provides technological edge for long-term benefit and channels like letters, emails, phone calls and during meetings.
secure the business interests of the company. Approx. 19% of The complaints are subsequently escalated for resolution.
the company’s revenue has been achieved from its in-house All major quality issues reported are being taken up for Root
developed products, systems and services. Cause Analysis (RCA) and are being resolved through RCA
Refer Annexure –VI to the Board’s Report of Annual Report, committees. Apart from complaints, customer feedback is
Research & Development and Technological achievements taken through customer satisfaction surveys, customers’
meets, face-to-face interactions, video-conferencing and
Board's Report
5. Details of corrective actions taken or underway, appreciation letters.
based on any adverse order in intellectual property related
disputes where in usage of traditional knowledge is 2. Turnover of Products and/services as a percentage of
involved. turnover from all products/services that carry information
about “Environmental & social parameters relevant to the
No dispute related to Intellectual Property rights emerged
during FY 2022-23.
6. Details of beneficiaries of CSR Projects:
No. of persons % of beneficiaries

S.
CSR Project benefitted from from vulnerable and
No.
CSR Projects marginalized groups
“Heal A Soul - IV” - Providing Free Anti Hemophilic Factor (AHF) to

1 160 100%
Persons & Children with Hemophilia (P & Cwh) across India
Providing financial support for running three Mobile Health care Unit
2 40000 100%
in Noida, Bikaner, Satpura
3 Construction of Boys & Girls Hostel buildings at Govt. Polytechnic 304 100%
Financial support to “MISSION SMILE” for cleft surgery of cleft patients

4 200 100%
in Haridwar
5 “JAN AROGYAM” Community Healthcare Programme in Nuh, Haryana 11000 100%

Notice
Providing medical assistance for 200 children suffering from cancer

6 500 100%
across India

product”, “Safe and responsible usage” and “Recycling and/or safe disposal”
BHEL products are capital goods and hence have long operating life of 25 years. The products/ systems are offered to customers
with manuals covering safety, operating in environmental friendly manner etc. The same aspects are covered in training of
customer personnel by BHEL.
3. Number of consumer complaints in respect of the following:
FY 2022-23 FY 2021-22
Received Pending Remarks Received Pending Remarks

during the resolution during the resolution
year end of year year end of year
Data privacy 0 0 - 0 0 -
Advertising 0 0 - 0 0 -
Cyber-security 0 0 - 0 0 -
Delivery of essential services Not applicable
Restrictive Trade Practices 0 0 - 0 0 -
Unfair Trade Practices 0 0 - 0 0 -
Other - - - - - -

4. Details of instances of product recalls on account of 3. Mechanisms in place to inform consumers of any risk
safety issues: of disruption/discontinuation of essential services.
Annual Review
There are no instances of product recall that happened on BHEL is in regular touch with its customers and any
account of safety issues disruptions (e.g. due to COVID-19 in the recent past) are
informed by emails, letter and any other communication
5. Does the entity have a framework/ policy on cyber
means agreed to in the Contract/ Purchase Order. Further,
security and risks related to data privacy? (Yes/No) If
proactive interactions with customers based on Performance
available, provide a web-link of the policy.
Monitoring reports of the installed machines or customer
Yes. BHEL is in B2B business and does not deal with individual feedback, helps in averting disruption of operations at the
Corporate Profile
customers. Hence, any individual customer data is not stored. customer premise. Periodic communications in form of
Refer ‘Data and Cyber Security’ in Report of the Board of letters or other digital means are issued to customer about
Director their machines which are due for overhaul or mandatory
inspections.
6. Provide details of any corrective actions taken on
Underway on issues relating of advertising, and delivery 4. Does the entity display product information on the
of essential services; cyber security and data privacy of product over and above what is mandated as per local laws?
customers; re-occurrence of instances of product recalls; (Yes/No/Not Applicable) If yes, provide details in brief. Did
Board's Report
penalty / action taken by regulatory authorities on safety of your entity carry out any survey with regard to consumer
products / services. satisfaction relating to the major products / services of the
entity, significant locations of operation of the entity or the
Not applicable
entity as a whole? (Yes/No)
Yes. All the required and standard information are displayed/
1. Channels / platforms where information on products stenciled on the products dispatched by BHEL.
and services of the entity can be accessed (provide web
Yes. BHEL conducts customer satisfaction survey for major
link, if available).
products/ services.
Information on products and services of BHEL can be
5. Provide the following information relating to data
accessed from www.bhel.com
breaches:
2. Steps taken to inform and educate consumers about
a. Number of instances of data breaches along-with
safe and responsible usage of products and/or services.
impact
Operation Manual and Training on products or systems are NIL
provided to customers as per the contractual requirements.
b. Percentage of data breaches involving personally
identifiable information of customers
Nil

Notice
Dr. Nalin Shinghal

Place: New Delhi
Date: July 28, 2023

RESEARCH &
DEVELOPMENT AND
TECHNOLOGICAL
ACHIEVEMENTS

Annexure-VI to the Board’s Report
Research & Development and Technological Achievements
Annual Review
6.1 R&D Strategy to complete the design of the Advanced Ultra Super Critical
BHEL has established itself as a leading Research & (AUSC) technology. This cutting-edge AUSC technology
Development (R&D) and Innovation organization in the sets new industry standards by offering significantly higher
heavy engineering sector in the country. In FY 2022-23, a efficiency and lower emissions as compared to supercritical
significant 19% of the company’s revenues were generated and subcritical technologies.
from products, systems, and services developed in-house BHEL has also developed the Low Rating Supercritical Sets
and has filed 5,443 IPRs till 31st March 2023. This highlights as an alternative to replace older and inefficient subcritical
Corporate Profile
the company’s commitment on generating and safeguarding thermal power plants in the country that are completing their
innovative technologies and solutions. With R&D expenditure economic life of 30 years (more than 50 GW by 2030). The
consistently surpassing 2.5% of revenue over the past requirement for these lower rating supercritical sets (~350
years, BHEL ranks among the top spenders on R&D in the MW) may rise in future, given the land constraints in upcoming
engineering & manufacturing industry. expansion projects (replacing lower rating sets with 660/800
BHEL’s R&D programs showcase the company’s MW supercritical sets) and requirement of flexible operation
unwavering commitment to continuous innovation as well in existing thermal power plants.
as indigenization of the country’s capital goods imports. Additionally, BHEL has showcased its expertise in clean coal
By aligning company efforts with these programs, BHEL technologies through the indigenous design, installation,
Board's Report
ensures that it remains at the forefront of technological and demonstration of a 0.25 TPD Methanol Generation
advancements, and is responsive to industry demands. Plant in Hyderabad, using BHEL’s in-house developed
BHEL recognizes the significance of the ongoing energy PFBG technology for gasification of high-ash Indian coal.
transition as well as the imperative to utilize coal to fuel This plant utilizes high ash Indian coal, emphasizing BHEL’s
economic aspirations of the country, considering the vast commitment to utilize local resources. The company is now
available coal reserves. With this in mind, the company is focusing on indigenisation of technology for production of
focusing on clean coal technologies such as coal gasification other feedstock chemicals utilising syngas produced from
and has also successfully partnered with NTPC and IGCAR coal gasification, a development that will significantly reduce
Notice
Centre of Excellence for Computational Fluid Dynamics (CFD) at Corporate R&D, Hyderabad

Centre of Excellence for Advanced Transmission Systems at Corporate R&D, Hyderabad
the country’s dependence on import of chemicals. BHEL company is dedicated to swiftly absorbing and indigenizing
also recognizes the importance of carbon capture and its these technologies, meeting the specific requirements of the
utilization technologies and aspires to be a leading player in Indian market, and also exploring export prospects.
this field.
Ongoing Technology Collaboration Agreements
In the transportation sector, BHEL is actively pursuing self-
sufficiency and enhancing its in-house capabilities to design Technology Collaboration with global OEMs
and manufacture advanced electric systems for diverse rolling
Sl. No. Name of Collaborator Product
stock applications of Indian Railways. In close collaboration
1 Siemens Energy Global Steam Turbines,
with Indian Railways, BHEL has been successfully delivering
GmbH & Co. KG., Generators and Lateral/
customized solutions such as regenerative braking systems
Germany Axial Condensers
for conventional WAG-7 locomotives, IGBT-based propulsion
2 General Electric Steam Turbine for
systems for India’s first air-conditioned local train and solar
Technology GmbH, Nuclear Power Projects
photovoltaic plant installed alongside railway tracks to
Switzerland
directly power the 25 kV Traction System.
3 Leonardo S.p.A., Italy 76/62 Upgraded Super
BHEL also plays a vital role in the defence and aerospace Rapid Gun Mount
sector by working closely with esteemed customers such as 4 Sumitomo SHI FW Subcritical and
Combat Aircraft Systems Development & Integration Centre Energia Oy, Finland Supercritical Circulating
(CASDIC), Hindustan Aeronautics Limited (HAL), Indian Space Fluidised Bed
Research Organization (ISRO), Aeronautical Development Combustion (CFBC)
Agency (ADA) and others. Through these collaborations, Boilers
BHEL contributes to the development and delivery of a 5 Valmet Automation Oy., New Generation C&I
diverse range of strategic equipment and services. Finland Automation (Distributed
In summary, BHEL’s commitment towards development Control System)
of cleaner indigenous technologies, advancements in 6 Mitsubishi Heavy Flue Gas
transportation systems, and its engagement in the defence Industries Ltd, Japan Desulphurization
and aerospace sector exemplify the company’s dedication 7 HLB Power Co., Ltd., Gates and Dampers
to innovation, self-reliance, and meeting the strategic Republic of Korea
requirements of various industries in India. 8 Vogt Power International Heat Recovery Steam
Inc., USA Generators (HRSG)
Recognising the change in technological landscape and
9 Babcock Power SCR System De-NOx
the potential it brings for new business opportunities, BHEL
Environmental Inc., USA applications
is addressing the opportunities through a combination of
10 NANO Co. Ltd., Republic SCR Catalyst for De-
in-house development, collaborations with academia, and
of Korea NOx applications
Technology Collaboration Agreements (TCA) with established
11 Kawasaki Heavy Stainless steel coaches
industry players. BHEL currently has 13 active TCAs with global
Industries Limited, Japan and bogies for metros
engineering & manufacturing leaders and Indian entities. The

Technology Collaboration with Indian Entities technology strategy, while the Corporate R&D division
focuses on in-house technology development. To further
Sl. No. Name of Collaborator Product bolster R&D efforts, BHEL has the dedicated Research &
1. Indian Space Research Space Grade Lithium Ion Product Development (RPD) groups within its various product
Annual Review
Organization (ISRO), Cells divisions at manufacturing units.
India
BHEL has established a well-equipped state-of-the-art R&D
2. CSIR- IIP, Dehradun, Pressure Vacuum Swing
infrastructure, comprising 14 Centres of Excellence at various
India Adsorption (PVSA) based
locations, including Corporate R&D Hyderabad (Intelligent
oxygen Plant
Machines and Robotics, Machine Dynamics, UHV Laboratory,
BHEL is committed to establish a robust knowledge Computational Fluid Dynamics, Permanent Magnet
ecosystem within the organization as well as continuous Machines, etc.), HPBP Tiruchirappalli (Coal Research Centre)
reskilling of its engineering workforce. A specific area of and EDN Bengaluru (Power Electronics, IGBT & Controller
focus for BHEL is engineering optimization, achieved through
Corporate Profile
Technology) etc. Company also has 5 Specialized Research
design optimization and streamlining product cycle times. Institutes, namely Pollution Control & Research Institute
This strategic approach aims at driving cost reduction and (PCRI), Haridwar, Welding Research Institute (WRI), Trichy,
improve overall efficiency across BHEL products. Ceramic Technological Institute (CTI), Bengaluru, Centre for
Electric Transportation (CET), Bhopal and Amorphous Silicon
6.2 R&D Structure Solar Cell Plant (ASSCP), Gurugram.
Company’s Research and Development (R&D) structure is Recognizing the importance of industry-academia
headed by Director (Engineering, Research & Development), collaboration, BHEL has partnered with leading academic
responsible for overseeing the overall research and and research institutions in the country, including IITs,
Board's Report
development activities of the company along with providing CSIR, ARCI, ARAI and others. These collaborations enable
strategic direction and guidance, supported by Corporate BHEL to conduct research in identified areas and leverage
Technology Management (CTM) and Corporate R&D the expertise of academia for successful developments in
division. CTM is responsible for formulating the company’s products and processes.
Notice
Creep testing facility for Advanced Materials at Metallurgy Department at Corporate R&D, Hyderabad

Electron Microscope at Welding Research Institute (WRI), Trichy
Furthermore, BHEL has realigned its R&D processes to cells have been tested and installed at BHEL ASSCP,
effectively address emerging business opportunities helping Gurugram for field trials.
in sustaining growth. This ensures that BHEL remains
• Successfully established and evaluated performance
responsive to evolving market needs, and optimizes its
of methanol firing at Liquid Fuel Burning Test Facility
R&D efforts for enhanced competitiveness and continuous
(LFBTF). This involved establishing system for low
innovation.
viscous methanol fuel comprising of pressuring system,
atomizers, ignitors and flame scanner suitable for
6.3 Achievement during the year
methanol and will enable offering of methanol firing
BHEL’s R&D efforts towards development of new/ improved system as an alternative to Light Diesel Oil and Heavy
products, processes and systems have resulted in following Fuel Oils in Thermal Power Plants.
major developments:
• BHEL has in-house designed and developed Sucker Rod
• Designed and developed Electrics for non-AC EMU Pumping (SRP) unit (also known as Beam Pumping Unit)
for ICF Chennai. The development comprising widely used in oil fields as an oil extraction machine
Traction Converter, Auxiliary Converter, Train Control which are largely imported from China.
& Management System (TCMS) software and Remote
• Successfully completed design of Traction Converter
Monitoring System has been introduced as per “Make in
panel for 6000 HP locomotive for ease of assembly,
India” scheme. Prototype train have been commissioned
reduction in assembly time, reduction in delivery time
at Integral Coach Factory (ICF).
and ease of maintenance.
• Indigenously developed Passivated Emitter Rear Contact
• Successfully designed, developed, manufactured and
(PERC) mono-crystalline solar cells with benchmark
tested 2 kW Air Cycle Machine (ACM) based Liquid
efficiencies of ~22%. Successfully benchmarked the
Cooling System (LCS) as per stringent military standards
additional process steps that are required for PERC
(EMI/EMC, Environmental and Power supply tests) for
Technology i.e. Single side Etching, Rear Passivation Stack
Light Combat Aircraft Mk1.
and Laser Contact Opening, along with improvements
in the existing process steps specifically texturisation, • Developed 500 MVA, 765/400/33 kV, 1-phase Inter
Diffusion and ARC (Anti Reflection Coating) deposition. Connecting Transformer (ICT) meeting requirement of
Modules fabricated using the in-house developed PERC fixed I2R Loss, and without On Load Tap Changer (OLTC)

as per CEA Standard specification for Transformers and o Vertical Induction Motors (2-6 MW, 10-36 poles)
Reactors.
6.4 Focus areas for R&D and technology development
• Designed & manufactured 1000 kW, 430 V, 6 Pole Main
Motor & Generator (MMG) (consists of Synchronous
Annual Review
BHEL’s R&D focus for future include:
Machine and DC machine on single shaft) for strategic
application. • Total solutions for rail transportation in areas of three-
phase AC drive system for electric locos & Electric
• Successfully completed design, development, Multiple Units (EMU), high powered locomotives and
manufacturing and type testing of 100 kVA Rotary high speed trainsets.
Frequency Converter (RFC) for upgraded Super Rapid
Gun Mount (SRGM) for Defence application. • Post successful development & demonstration of
coal gasification technology, specifically for high ash
• BHEL has developed in-house technology for flexible Indian coal, company is working to develop indigenous
Corporate Profile
operations of Thermal Power plants and has successfully technology to generate chemicals and green fuels
commissioned the same in one unit and demonstrated (methanol, hydrogen, etc.) from syngas.
the performance parameters.
• Products & systems for fuel cell applications.
• Successfully completed indigenization of Integrated
Compressor Control System. The development consists • Planning to establish CoE for Electrolysers, Traction
of design, manufacturing, testing and validation through propulsion systems, Hydrogen storage cylinders -Type
software simulation tool of entire gamut of Anti- Surge IV and National testing facility for Hydrogen Storage
Controller (ASC) and other related Compressor Control Type-IV cylinders.
hardware and software packages. The integrated • Development of Products and systems such as aero
Board's Report
compressor control system has been supplied for structures, Marine Gas Turbines, Li-ion battery system,
Northern Refineries, Baiji Iraq project. heat exchangers, etc. for defence and strategic
• Successfully completed design and development of applications.
AC Micro Grid controller for the Power Conditioning • Development of Products for downstream oil and gas
System (PCS) of Battery Energy Storage System (BESS) to sector.
operate in both grid connected mode and AC Microgrid
mode (i.e. islanded mode) in case of grid failure to • Development of Products and systems for Nuclear
meet the critical load demands. It also has Black Start power plants.
capability i.e. to self-start in islanded mode. • Development of solutions for E-mobility ecosystem
• Successfully indigenized Ceramic Pouring Tube for (including power train, charging stations etc.) and
manufacturing of cast steel wheels at Rail Wheel Factory energy storage systems.
and completed the development orders of both Rail • Application of Industry 4.0 with deployment of new
Wheel Factory, Yelahanka and Rail Wheel Plant, Bela. technologies including intelligent machines & robotics
• Designed, manufactured & tested largest rating 2000 and Advanced Manufacturing Technologies.
kW, 6.6 kV, 8 Pole Induction Motor in 630 mm center • Products and systems for digital substation and advanced
height frame. This motor is suitable for 50 Hz as well as power transmission like ±800kV HVDC, 765 kV, 1200 kV
60 Hz supply frequency operation. transmission systems.
• Designed, manufactured & tested 4900 kW, 11 kV, 4 Pole
Alternator in optimized frame size for Turbine driven
generator application. For and on behalf of the Board of Directors of
• Following design automation initiatives have been
completed:
o Complete Hydro Generator (5 - 400 MW, 4 – 64
Poles) – Mechanical, Electrical, ventilation design
Notice
has been consolidated in a software system which Dr. Nalin Shinghal

has resulted in cycle time reduction by automatic Chairman & Managing Director
generation of manufacturing drawings and BOM. Place: New Delhi
o Knowledge Based Engineering Project of 400 kV, 3 Date: July 28, 2023
phase Autotransformer Tank.

Annexure – VII Technology Absorption
Details of technology imported during the last 5 years:
7.1 Conservation of Energy
As a leading company in the field of heavy engineering Technology Year of Absorption
equipment, we understand the importance of managing import status
energy in our premises and providing energy efficient Gates and Dampers 2018 Technology
technologies / equipment to our customers. Taking projects Absorption
related to Energy efficiency / conservation is a regular feature completed
in our company and in the recent past, a lot of efforts have Selective Catalytic 2018
been put to identify the projects and execute these projects Reduction (SCR) Catalyst
in a time bound manner which helped us in demand side
SCR System 2018
management. Our energy intensive units are ISO 50001
certified. Various energy conservation projects are identified Steam Turbine for Nuclear 2018 Technology
in the Energy Audits in Units and implementation of these PHWR application absorption in
have resulted in savings in the energy cost. New Generation C&I 2020 progress.
Automation
Some of the major energy efficiency projects completed
during the year included: Circulating Fluidised Bed 2022
Combustion (CFBC) Boilers
• Structural revamping, with improved insulation and
better damper operation of various furnaces, and
7.3 Foreign Exchange Earnings and Outgoing (₹ Crore)
upgradation from conventional to regenerative burners-
based combustion system at CFFP Haridwar, with Particulars 2022-23 2021-22
potential annual electricity demand reduction of 6.63
Foreign Exchange Used 1530 1886
Million units.
Foreign Exchange Earned 1585 2477
• Total in-house installed solar capacity of 34.89 MWp
helped in energy generation of 29.78 million units and
resulted in carbon footprint avoidance to the tune of
26,964 MTCO₂-equivalent during the year.
• Installation of single screw compressor in place of higher BHARAT HEAVY ELECTRICALS LTD.
capacity Reciprocating Type Compressor at 500-ton
Manual press at FSIP Jagdishpur with expected annual
electricity demand reduction of nearly 59000 Units.
Reduction in electricity demand per year, accruing out of
various energy conservation projects implemented in the Dr. Nalin Shinghal
year, is around 83 Lakhs units. Chairman & Managing Director
Place: New Delhi
7.2 Technology Absorption and Research & Development Date: July 28, 2023
Research & Development
1. Specific areas in which R&D Given in the

carried out by the Company Board’s Report
2. Benefits derived as a result under Annexure-
of the above R&D VI “R&D and
Technological
3. Future Focus areas
Achievements”
4. Expenditure on R&D
Total -- `690.85 crore
a) Recurring -- ₹ 688.97 crore
b) Capital -- ₹ 1.88 crore
Expenditure as a percentage -- 3%
of revenue

GREENING GRID:
Establishing synergy between
Renewable and Coal-based Power
Annual Review
India is making commendable strides towards commissioned at 1x600 MW REGL plant, Raigarh of M/s
achieving its Nationally Determined Contribution Adani, is a first of its kind in the country, and has received
(NDC) on climate change. In particular, the power appreciation from the customer. BHEL has specialized &
sector has witnessed a significant increase in the indigenous offerings, customizable for customer needs,
share of electricity generated from renewable for implementation of flexible operation solutions. The
power assets. However, this transition poses company has further received 4 more orders in this
challenges for the energy system (power grid),
Corporate Profile
domain.
particularly in handling the intermittent nature of
power generated from renewable sources such as Central Electricity Authority (CEA) of India has mandated
solar and wind. all existing thermal utilities to prepare for this new
operating flexi regime to achieve the national objective.
For effectively integrating variable RE power with Utilities have to comply to the requirement of 55%
coal-based thermal power, BHEL has successfully technical minimum load with required ramp rates by Jan
demonstrated cost effective flexible operations 2024. Further, for achieving 40% technical minimum load
with required ramp-rates for coal-based power
Board's Report
with defined ramp rates, CEA has defined the age wise
plant. The solution (also known as Flexibilization), phasing plan for various TPPs of respective utilities.
Notice

167
Annexure –VIII to the Board’s Report
8.1 Implementation of Official Language programs and Kavi Sammelan were organized. “Rajbhasha
Ullas Parv” was celebrated in all the Delhi-NCR based offices,
BHEL is committed towards implementation of our Official
including the Corporate Office.
Language. Official Language cells have been established
in all its Units/Divisions/Offices with Rajbhasha Officers In a unique initiative, taking forward the concept of Quality
working in all these cells. Official Language Implementation Circles which was launched by BHEL in 1981, BHEL has
Committees have been constituted in all the Units / Divisions introduced Rajbhasha Chakras across the company, in the
/ Offices under the chairmanship of the Head of the Unit / last two years. More than 100 Rajbhasha Chakras have been
Division / Office. Quarterly meetings were held regularly in formed to motivate the employees to use Hindi in their day
all the Units/Divisions, including Corporate Office, during to day official work which has positively impacted the use
the year. Hindi workshops were organized regularly in BHEL of Hindi across the Company. Several competitions/ events
during the year with about 4500 employees participating were also organized in all the Units/Divisions/Offices of the
in them. A total of 17 Hindi magazines are being published company to encourage use of Rajbhasha in the company.
across the company. BHEL is also contributing as a member
During the year, the Hon’ble Committee of Parliament on
in the Testing Committee of the Memory Based Translation
Official Language inspected 7 Units/Divisions of BHEL and
Software ‘Kanthastha 2.0’ and its mobile-app developed
expressed satisfaction and appreciated BHEL’s efforts in this
by the Department of Official Language, Ministry of Home
endeavor. BHEL is also playing an active role in the Town
Affairs, Government of India.
Official Language Implementation Committees (TOLICs)
On the occasion of Vishva Hindi Diwas, various competitions located in various cities. Several competitions, seminars,
/ programs were organized in all units / divisions of the conferences and programs are organized under the aegis
company. Under the auspices of Hindi Diwas, Hindi Day/ of these committees. BHEL is contributing significantly in
Week/Fortnight/Month was celebrated in all the Units/ organizing competitions and other activities of TOLICs in its
Divisions/Offices including Corporate Office. During these premises.
celebrations, various competitions, seminars, cultural
Rajbhasha Ullas Parv was celebrated in all the Units/ Divisions/Offices including Corporate Office of BHEL

Annual Review
Corporate Profile
Board's Report
Vigilance compendium, VISHLESHAN launched on the occasion of Vigilance Awareness Week being observed in BHEL in 2022
8.2 Vigil Mechanism Random checks of the activities in the organization were
conducted through surprise checks, system studies, CTE
The principles of Good Governance, Transparency, Probity
type inspections etc. Based on the findings of these scrutiny,
and Ethics are followed in BHEL so as to ensure highest level of
system corrections / improvements are suggested so as
integrity in the functioning of decision makers. The company
to minimize discretionary powers, and for bringing clarity.
has in place a full-fledged Vigil Mechanism. Vigilance function
This in turn will also result in reduction of the scope for
of BHEL is headed by Chief Vigilance Officer, who acts as an
misinterpretation of the Policies / guidelines. Annual Property
extended arm of Central Vigilance Commission (CVC) in the
returns of about 2982 employees (about 20% of employee
Company. Each Manufacturing Unit / Power Sector Region /
covered under CDA Rules) were scrutinized during FY 2022-
Industry Sector of BHEL has a Vigilance set-up, headed by a
23. During the year, 124 number of Training programs/
Senior Officer reporting to the CVO.
Workshops on Preventive Vigilance were organized for
The Vigilance apparatus in BHEL facilitates an environment employees associated with decision making process across
for the employees to work with integrity, efficiency, the Units/Regions.
transparently, while upholding highest ethical standards for
During FY 2022-23, 36 cases were taken up for investigation,
the Company. Vigilance Department has adopted a multi-
58 penalties (16 major and 42 minor) were imposed and 47
pronged strategy and approach to combating corruption.
warning / advisory letters were also issued. Further, out of
Preventive Vigilance has been the focus area of BHEL, as 196 complaints (190 received during FY 2022-23) 191 were
proactive vigilance is a better tool to reduce the corruption disposed of and rest are under different stages of disposals.
& other irregularities, as compared to punitive vigilance. The On the advice of Vigilance, recoveries of ₹ 68.91 lakh (approx.)
main objective of preventive vigilance is to progressively have been made from various agencies, employees, vendors
reduce ambiguity and discretion in the decision making and contractors.
processes by plugging the loopholes in the system, thereby
Notice
As per directives issued by CVC vide circular no. 20/09/2022

making the process more objective and transparent in
dated 8th September, 2022, the Vigilance Awareness Week was
furtherance to reducing the scope of malpractices. During
observed from 31st October to 6th November, 2022 with the
the year, inspection of Units / Regions was done by the
theme “Hkz"Vkpkj eqä Hkkjr & fodflr Hkkjr” (Corruption Free
Corporate Vigilance team to study the various processes
India for a developed Nation). The link of ‘Integrity Pledge’
being adopted in the units and identify areas that require
(https://pledge.cvc.nic.in) was provided on BHEL internet,
improvement.

and all the intranet sites of the various manufacturing Units/ policy conforming to the requirements of ISO 14001 & ISO
Regions/ Offices and all the stakeholders were encouraged 45001 certification standards. Procedures & techniques like
to take the integrity pledge. HIRA (Hazard Identification and Risk Assessment), JSA (Job
Safety Analysis), Method Statement etc., are widely used for
In order to spread awareness about vigilance, various
risk management in BHEL.
programmes i.e. debates, elocutions, panel discussions,
essay writing, quiz, slogans/ poster competitions etc., were Periodic audits by internal as well as external agencies are
organised on the theme of Vigilance Awareness Week for the carried out to review and ensure effective implementation
employees, their wards and students of schools & colleges in of best safety practices. BHEL has also established Safety
various cities across India. A total of about 1500 employees Parks at major project sites to impart induction level and job
participated in these competitions. Messages received from specific safety training to the construction workers. All sites
dignitaries and photographs of activities conducted during have facilities of First Aid boxes and First Aid centers with
the VAW-2022 were shared on the social media platforms. trained manpower.
Vigilance Department publishes quarterly e-Newsletter In addition to the structured trainings on safety and
‘DISHA’ with a view to create awareness about procurement occupational health, a special campaign was organised
policy, rules and procedures etc., to disseminate the across the organization, as “BHEL Safety Fortnight-2023”
instructions/ guidelines issued by CVC, and Government of during 4th – 17th, March 2023, starting from National Safety
India, from time to time and to share best practices, case Day. Other HSE campaigns were also organized on large scale
studies and articles. Four issues were published during the i.e. BHEL Environment Month (5th June – 04th July, 2022),
year and forty issues have so far been published since 2013. Swachhata Pakhwada (16th – 31st August 2022), etc., to solicit
The e-newsletter is given wider publicity, and is sent to all higher participation in safety campaigns. Award Schemes like
employees through e-mail and also hosted on BHEL’s units/ Longest Accident Free Period, Best Safety Project of the year
Regions Intranet webpage. were initiated to motivate Units/Divisions/ Regions to excel in
the safety aspect of their domain area.
8.3 Health, Safety & Environment (HSE)
BHEL has received many awards as a recognition of these
Employees are the greatest asset for any organization, and efforts. The awards received during the year include ‘Gold
their health, safety and well-being are cardinal determinants Award under Apex India Safety Awards 2022 in Engineering
for the organization to achieve its vision. At BHEL, we make Sector’ and ‘Golden Peacock Environment Award-2022’.
every effort to strive for ‘Zero-Harm’ in all our activities,
Above efforts reflect the company’s constant endeavour for
especially for our workforce. BHEL have a well-established
providing safe and healthy environment for the deployed
and easily accessible ‘Health, Safety & Environment’ (HSE)
human resource.

Dr. Nalin Shinghal

Place: New Delhi
Date: July 28, 2023

Annexure – IX to the Board Report
Form AOC- I
Annual Review
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of
subsidiaries/associate Companies/joint ventures
Part “A”: Subsidiaries

(Information in respect of each subsidiary to be presented with amounts in ₹ Crore)
Corporate Profile
1. Sl. No.
2. Name of the subsidiary
3. The date since when subsidiary was acquired
4. Reporting period for the subsidiary concerned, if different from the holding
company’s reporting period
5. Reporting currency and Exchange rate as on the last date of the relevant Financial
year in the case of foreign subsidiaries.
6. Share capital
Board's Report
7. Reserves & surplus
8. Total assets NOT APPLICABLE
9. Total Liabilities
10. Investments
11. Turnover
12. Profit before taxation
13. Provision for taxation
14. Profit after taxation
15. Proposed Dividend
16. % of shareholding
1. Names of subsidiaries which are yet to commence operations NIL

2. Names of subsidiaries which have been liquidated or sold during the year. NIL
Notice

Part “B”: Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate
Companies and Joint Ventures
(₹ Crore)
Name of Joint Ventures BHEL-GE Gas Turbine Services NTPC BHEL Power Raichur Power
P. Ltd. Projects Pvt Ltd Corporation Ltd.
1. Latest Audited Balance Sheet 31.03.2022 31.03.2022 31.03.2022
Date
2. Date on which Associate or 5th May ,1997 28th April,2008 15th April, 2009
Joint Venture was associated or
acquired
3. Shares of JVs held by BHEL on
the year end
No. 2379999 50000000 664040000
Amount of investment 2.38 50.00 664.04
Extent of Holding % 50% minus one share 50% 22.14%
4. Description of how there is Jointly controlled entities
significant influence
5. Reason why the associate/ JV is N.A. N.A. N.A.
not consolidated
6. Net worth attributable to 232.29* NIL NIL
Shareholding as per latest
audited Balance Sheet
7. Profit/ Loss for the year As per equity method
i. Considered in consolidation 56.02 NIL NIL
ii. Not considered in - (2.75) (246.77)
Consolidation
* At the end of FY 2022-23.
Figures given in brackets are negative. In RPCL,300 shares are held by BHEL in the name of its nominee.
M/s Power Plant Performance Improvement Ltd. is under liquidation and hence not considered in consolidation. The investment
in this JV amounting ` 2.00 Crore has been fully provided for.
For and on behalf of Board of Directors
(Rajeev Kalra) (Jai Prakash Srivastava) (Dr. Nalin Shinghal)

Company Secretary Director (E, R&D) Chairman and Managing Director
M. No. 14567 with additional charge of DIN: 01176857
Director (Finance) & CFO
DIN: 09703643
As per our report of even date attached

For ABP & Associates For PSMG & Associates For S.L. Chhajed & Co. LLP
Chartered Accountants Chartered Accountants Chartered Accountants
FRN - 315104E FRN - 008567C FRN - 000709C/C400277
(Bimal Kumar Chanduka) (Swati Singh) (Vijit Baidmutha)

Partner Partner Partner
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi
Date: May 26, 2023

Form No. AOC-2
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Annual Review
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to
in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso
thereto
1. Details of contracts or arrangements or transactions not at arm’s length basis:
(a) Name(s) of the related party and nature of relationship : NIL
(b) Nature of contracts/arrangements/transactions : NIL
Corporate Profile
(c) Duration of the contracts / arrangements/transactions : NIL
(d) Salient terms of the contracts or arrangements or transactions including the value, if any : NIL
(e) Justification for entering into such contracts or arrangements or transactions : NIL
(f) Date(s) of approval by the Board : NIL
(g) Amount paid as advances, if any : NIL
Date on which the special resolution was passed in general meeting as required under proviso to
(h) : NIL
section 188
Board's Report
2. Details of material contracts or arrangements or transactions at arm’s length basis:
(a) Name(s) of the related party and nature of relationship : NIL
(b) Nature of contracts/arrangements/transactions : NIL
(c) Duration of the contracts / arrangements/transactions : NIL
(d) Salient terms of the contracts or arrangements or transactions including the value, if any : NIL
(e) Date(s) of approval by the Board, if any : NIL
(f) Amount paid as advances, if any: : NIL

For and on behalf of Board of Directors of
(Dr. Nalin Shinghal)
Place: New Delhi

Date: July 28, 2023
Notice

Annexure - X to the Board’s Report
INDEPENDENT AUDITOR’S REPORT
To the Members of
Report on the Audit of the Standalone Financial Statements
Opinion Basis for Opinion

We have audited the accompanying standalone financial We conducted our audit of the standalone financial statements
statements of Bharat Heavy Electricals Limited (“the in accordance with the Standards on Auditing (SAs) specified
Company”), which comprise the Balance Sheet as at March under section 143 (10) of the Companies Act, 2013. Our
31, 2023, the Statement of Profit and Loss (including Other responsibilities under those Standards are further described
Comprehensive Income), the Statement of Changes in Equity in the Auditor’s Responsibilities for the Audit of the Financial
and the Statement of Cash Flows for the year then ended, Statements section of our report. We are independent of
and notes to the standalone financial statements, including the Company in accordance with the Code of Ethics issued
a summary of the significant accounting policies and other by the Institute of Chartered Accountants of India together
explanatory information (hereinafter referred to as “the with the ethical requirements that are relevant to our audit of
Standalone financial statements”) in which are incorporated the standalone financial statements under the provisions of
the returns for the year ended on that date for 19 branches the Companies Act, 2013 and the Rules thereunder, and we
audited by us and 10 branches audited by the branch auditors have fulfilled our other ethical responsibilities in accordance
of the company. with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient
In our opinion and to the best of our information and
and appropriate to provide a basis for our opinion on the
according to the explanations given to us, the aforesaid
standalone financial statements.
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 Key Audit Matters
Accounting Standards prescribed under section 133 of the
Key audit matters are those matters that in our professional
Act read with the Companies (Indian Accounting Standards)
judgement were of most significance in our audit of the
Rules 2015, as amended, (“Ind AS”) and other accounting
standalone financial statements of the current period. These
principles generally accepted in India, of the state of affairs
matters were addressed in the context of our audit of the
of the Company as at March 31, 2023, the profit and total
standalone financial statements as a whole, and in forming our
comprehensive income, changes in equity and its cash flows
opinion thereon, and we do not provide a separate opinion
for the year ended on that date.
on these matters. We have determined the matters described
below to be the key audit matters to be communicated in
our report.

Key Audit Matter Auditor’s Response
Accuracy of recognition, measurement, Principal Audit Procedures
presentation and disclosures of revenues and
Our audit approach consisted testing of the design and operating
Annual Review
other related balances in respect of “Revenue
effectiveness of internal controls and procedures as follows:
from contracts with Customers” under Ind AS 115.
• Evaluated the effectiveness of controls over the preparation of
The application of this revenue accounting
information that are designed to ensure the completeness and
standard involves certain key judgments relating to
accuracy.
identification of distinct performance obligations,
determination of transaction price of identified • Selected a sample of existing continuing contracts and new
performance obligations, the appropriateness of contracts, and tested the operating effectiveness of the internal
the basis used to measure revenue recognized over control, relating to identification of the distinct performance
a period, and disclosures including presentations of obligations and determination of transaction price.
Corporate Profile
balances in the financial statements.
• Tested the relevant information, accounting systems and change
Estimated efforts is a critical estimate to determine relating to contracts and related information used in recording and
revenue, as it requires consideration of progress disclosing revenue in accordance with Ind AS 115.
of the contract, efforts incurred till date, efforts
• Reviewed a sample of contracts to identify possible delays in
required to complete the remaining performance
achieving milestones, which require change in estimated efforts to
obligation.
complete the remaining performance obligations.
Refer Note 40 to the standalone financial
• Performed analytical procedures and test of details for
statements.
Board's Report
reasonableness and other related material items.
Assessment and recoverability of Trade Principal Audit Procedures
Receivables and Contract Assets
We have assessed the Company’s internal process to recognize the
The Company has trade receivables outstanding revenue and review mechanism of trade receivables and contract
(net) of ` 6,543.89 Crore. and contract assets (net) assets. Our audit approach consisted testing of the design and operating
of `29,740.03 Crore at the end of March 31, 2023. effectiveness of internal controls and procedures as follows:
These balances are related to revenue recognized • Evaluated the process of invoicing with Customers.
in line with Ind AS 115 “Revenue from contracts with
• Obtained the list of project wise outstanding details and its review
customers” for ongoing contracts and completed
mechanism by the management.
contracts. The assessment of its recoverability is a
key audit matters in the audit due to its size, pending • Reviewed the guidelines and policies of the Company on impairment
balance confirmation of letters sent and high level of trade receivables and contract assets.
of management judgment.
• Tested the accuracy of aging of trade receivables and contract
Refer Notes 6, 9, 40 to the standalone financial assets at the year end on sample basis.
statements.
• Performed analytical procedures and test of details for
reasonableness, recoverability and other related material items.
Notice

Assessment of Contingent Liability Principal Audit Procedures
There are a number of litigations pending before The audit procedures included but were not limited to:
various forums against the Company and the
- Obtaining a detailed understanding processes and controls of the
management’s judgement is required for estimating
Management with respect to claims or disputes
the amount to be disclosed as contingent liability.
- Performing following procedures on samples selected:
We determined the above area as a Key Audit
Matter in view of associated uncertainty relating - Understanding the matters by reading the correspondences,
to the outcome of these matters which requires communications, minutes of the management meeting
application of judgment in interpretation of law.
- Making corroborative inquiries with appropriate level of the
Accordingly, our audit was focused on analyzing
management personnel including status update, expectation
the facts of subject matter under consideration and
of outcomes with the basis, and the future course of action
judgments/ interpretation of law involved.
contemplated by the Company, and perusing legal opinions, if any,
(Refer Note 32 to the standalone financial obtained by the Management.
statements)
- Obtaining direct confirmation from the legal attorneys of the
company and considering their opinions /probability assessment of
the outcomes.
- Evaluating the evidence supporting the judgement of the
management about possible outcomes and the reasonableness of
the estimates.
- Evaluating appropriateness of adequate disclosures in accordance
with the applicable accounting standards.
Information Other than the Standalone Financial Management’s Responsibility for the Standalone Financial
Statements and Auditor’s Report Thereon Statements
The Company’s Board of Directors is responsible for the The Company’s Board of Directors is responsible for the
preparation of the other information. The other information matters stated in Section 134(5) of the Companies Act, 2013
comprises the information included in Management (“the Act”) with respect to the preparation of these standalone
Discussion and Analysis, Board’s Report including Annexures financial statements that give a true and fair view of the
to Board’s Report, Business Responsibility & Sustainability financial position, financial performance, total comprehensive
Report, Corporate Governance and Shareholder’s income, changes in equity and cash flows of the Company in
information, but does not include the standalone financial accordance with the Ind AS and other accounting principles
statements and our auditor’s report thereon. These reports generally accepted in India. This responsibility also includes
are expected to be made available to us after the date of this maintenance of adequate accounting records in accordance
Auditor’s Report. with the provisions of the Act for safeguarding the assets of
the company and for preventing and detecting frauds and
Our opinion on the financial statements does not cover
other irregularities; selection and application of appropriate
the other information and we do not express any form of
accounting policies; making judgments and estimates that
assurance conclusion thereon.
are reasonable and prudent; and design, implementation
In connection with our audit of the standalone financial and maintenance of adequate internal financial controls,
statements, our responsibility is to read the other information that were operating effectively for ensuring the accuracy
and, in doing so, consider whether the other information is and completeness of the accounting records, relevant to
materially inconsistent with the financial statements or our the preparation and presentation of the standalone financial
knowledge obtained in the audit or otherwise appears to be statements that give a true and fair view and are free from
materially misstated. material misstatement, whether due to fraud or error.
When we read such other information when made available In preparing the standalone financial statements,
to us and if we conclude that there is a material misstatement Management of Company is responsible for assessing the
therein we are required to communicate the matter to those Company’s ability to continue as a going concern, disclosing,
charged with governance. as applicable, matters related to going concern and using the

going concern basis of accounting unless the Management draw attention in our auditor’s report to the related
of Company either intends to liquidate the Company or to disclosures in the financial statements or, if such
cease operations, or has no realistic alternative but to do so. disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained
The Board of Directors are responsible for overseeing the
Annual Review
up to the date of our auditor’s report. However, future
Company’s financial reporting process.
events or conditions may cause the Company to cease
to continue as a going concern.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements • Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
Our objectives are to obtain reasonable assurance about disclosures, and whether the standalone financial
whether the financial statements as a whole are free from statements represent the underlying transactions and
material misstatement, whether due to fraud or error, and to events in a manner that achieves fair presentation.
issue an auditor’s report that includes our opinion. Reasonable
Corporate Profile
assurance is a high level of assurance, but is not a guarantee Materiality is the magnitude of misstatements in the
that an audit conducted in accordance with SAs will always standalone financial statements that, individually or in
detect a material misstatement when it exists. Misstatements aggregate, makes it probable that the economic decisions of
can arise from fraud or error and are considered material if, a reasonably knowledgeable user of the financial statements
individually or in the aggregate, they could reasonably be may be influenced. We consider quantitative materiality and
expected to influence the economic decisions of users taken qualitative factors in (i) planning the scope of our audit work
on the basis of these standalone financial statements. and in evaluating the results of our work; and (ii) to evaluate
the effect of any identified misstatements in the financial
As part of an audit in accordance with SAs, we exercise statements.
Board's Report
professional judgment and maintain professional skepticism
throughout the audit. We also: We communicate with those charged with governance
regarding, among other matters, the planned scope and
• Identify and assess the risks of material misstatement timing of the audit and significant audit findings, including
of the standalone financial statements, whether due any significant deficiencies in internal control that we identify
to fraud or error, design and perform audit procedures during our audit.
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis We also provide those charged with governance with a
for our opinion. The risk of not detecting a material statement that we have complied with relevant ethical
misstatement resulting from fraud is higher than for requirements regarding independence, and to communicate
one resulting from error, as fraud may involve collusion, with them all relationships and other matters that may
forgery, intentional omissions, misrepresentations, or reasonably be thought to bear on our independence, and
the override of internal control. where applicable, related safeguards.
• Obtain an understanding of internal financial controls From the matters communicated with those charged with
relevant to the audit in order to design audit procedures governance, we determine those matters that were of most
that are appropriate in the circumstances. Under significance in the audit of the standalone financial statements
section 143(3)(i) of the Companies Act, 2013, we are of the current period and are therefore the key audit matters.
also responsible for expressing our opinion on whether We describe these matters in our auditor’s report unless law
the company has adequate internal financial controls or regulation precludes public disclosure about the matter or
system in place and the operating effectiveness of such when, in extremely rare circumstances, we determine that a
controls. matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be
• Evaluate the appropriateness of accounting policies expected to outweigh the public interest benefits of such
used and the reasonableness of accounting estimates communication.
and related disclosures made by management.
• Conclude on the appropriateness of management’s use Other Matters
of the going concern basis of accounting and, based
Notice
We did not audit the financial statements/information of

on the audit evidence obtained, whether a material
10 (Ten) branches included in the standalone financial
uncertainty exists related to events or conditions
statements of the Company whose financial statements/
that may cast significant doubt on the Company’s
financial information reflect total assets of `35,883 Crore as
ability to continue as a going concern. If we conclude
at 31st March, 2023 and total revenue of `12,805 Crore for
that a material uncertainty exists, we are required to

the year ended on that date, as considered in the standalone the Provision of Section 164(2) of the Companies
financial statements. The financial statements/information Act, 2013 in respect of disqualification of directors
of these branches have been audited by the branch auditors are not applicable to the Company, being a
whose reports have been furnished to us, and our opinion in Government Company.
so far as it relates to the amounts and disclosures included
g. With respect to the adequacy of the internal
in respect of these branches, is based solely on the report of
financial controls over financial reporting of the
such branch auditors.
Company and the operating effectiveness of such
Our opinion is not modified in respect of these matters. controls, refer to our separate Report in “Annexure
B”;
Report on Other Legal and Regulatory Requirements h. With respect to the other matters to be included in
(1) As required by the Companies (Auditor’s Report) Order, the Auditor’s Report in accordance with Rule 11 of
2020 (“the Order”) issued by the Central Government the Companies (Audit and Auditors) Rules, 2014, in
of India in terms of sub-section (11) of section 143 of our opinion and to the best of our information and
the Act, we give in the “Annexure A” a statement on the according to the explanations given to us:
matters specified in paragraphs 3 and 4 of the Order, to i. The company has disclosed the impact of
the extent applicable. pending litigations on its financial position
(2) As required by Section 143 (3) of the Act, based on our in its standalone financial statements. Refer
audit we report that: Note 32 to the financial statements;
a. We have sought and obtained all the information and ii. The company has made provision, as required
explanations, which to the best of our knowledge under the applicable law or accounting
and belief were necessary for the purposes of our standards, for material foreseeable losses,
audit: if any, on long-term contracts including
derivative contracts. Refer Note 39 to the
b. In our opinion, proper books of account as required financial statements;
by law have been kept by the company so far as it
appears from our examination of those books and iii. There has been no delay in transferring
proper returns adequate for the purpose of our the amount, required to be transferred in
audit have been received from the branches not accordance with the relevant provisions of
visited by us; the Companies Act, 2013 and the rules made
thereunder, to the Investor Education and
c. The reports on the accounts of the branch offices Protection Fund by the Company.
of the Company audited under Section 143(8) of
the Act by branch auditors have been sent to us and iv. Based on the representation received from
have been properly dealt with by us in preparing Management, no funds have been advanced /
this report; received or loaned or invested by the company
with the understanding that the intermediary
d. The Balance Sheet, the Statement of Profit and shall lend or invest in other persons or entities
Loss (including other comprehensive income), identified in any manner whatsoever by or
Statement of Changes in Equity and the Statement on behalf of the Company / funding partly
of Cash Flow dealt with by this Report are in received by the company.
agreement with the books of account;
v. As stated on Note 31 to the financial statements,
e. In our opinion, the aforesaid financial statements the Board of Directors of the company has
comply with the Indian Accounting Standards proposed final dividend for the year which is
prescribed under Section 133 of the Act, read with subject to the approval of the members at the
Companies (Indian Accounting Standards) Rules ensuing Annual General Meeting. The dividend
2015 as amended; proposed is in accordance with section
f. In terms of Notification no. G.S.R. 463 (E) dt. 05- 123 of the Act to the extent it applies to the
06-2015 issued by Ministry of Corporate Affairs, declaration of dividend.

vi. Provision to Rule 3(1) of the Companies (3) On the basis of such checks of the books and records
(Accounts) Rules, 2014 for maintaining books of the Company, as we considered appropriate and
of account using accounting software which according to the information and explanations given
has a feature of recording audit trail (edit log) to us, we are enclosing our report in terms of Section
Annual Review
facility is applicable to the Company with effect 143(5) of the Act, on the directions and sub directions
from April 1, 2023, and accordingly, reporting issued by the Comptroller and Auditor General of India
under Rule 11(g) of Companies (Audit and in “Annexure C”.
Auditors) Rules, 2014 is not applicable for the
financial year ended March 31, 2023.
Corporate Profile
FRN - 315104E FRN - 008567C FRN - 000709C/C400277
Board's Report
M No. 053714 M. No. 404531 M. No. 406044
UDIN: 23053714BHAHSS7419 UDIN: 23404531BGYRDL5376 UDIN: 23406044BGUYQK9062
Place: New Delhi
Date: May 26, 2023
Notice

Annexure “A” to Independent Auditors’ Report
(Referred to in Paragraph 1 under “Report on Other Legal and Regulatory Requirements” of
our report to Member of Bharat Heavy Electricals Limited of even date)
To best of our information and according to the explanation 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) In respect of Company’s Property, Plant and Equipment on physical verification of inventory as compared
and Intangible Assets: to books record were not material.
(a) A. The Company has maintained proper records (b)
According to the information and explanations
showing full particulars including quantitative given to us, and relevant records produced, the
details and situation of its Property, Plant & company has been sanctioned working capital
Equipment. limit of `60,000 Crore (Fund Based Limit of
`6000 Crore, Non-Fund Based Limits Letter of
B. The Company has maintained proper records
Credit(LC) `3,000 Crore and Bank Guarantees(BG)
showing full particulars of Intangible assets.
`51,000), under consortium finance from Banks/
(b) The Company has program of verification to cover Financial institution against security of current
all the items of Property, Plant & Equipment in a assets. As per records verified by us, in our opinion,
phased manner, over a period of three years, which, the monthly/quarterly returns or statement filed by
in our opinion, is reasonable having regard to the the company with such Banks/Financial Institution
size of the Company and nature of its business. are in agreement with books of accounts of the
Pursuant to the program, certain Property, Plant Company.
and Equipment were physically verified by the
iii) According to the information given to us, the Company
management during the year. According to the
has not granted any loans or advances in the nature
information and explanation given to us, no material
of loans, secured or unsecured to companies, firms,
discrepancies were noticed on such verification.
Limited Liability Partnerships or other parties listed in the
(c) According to the information and explanation register maintained under section 189 of the Companies
given to us, the records examined by us, the title Act, 2013. Therefore, clauses (iii) (a-A, B), (iii) (b), (iii) (c),
deeds of immovable properties are held in the (iii) (d), iii) (e) and iii (f) of Paragraph 3 of the Order are not
name of Company except those disclosed in applicable to the Company.
Additional disclosure of Note 3.1 Property, Plant
iv) According to information and explanations given to us,
and Equipment.
Section 185 of the Act regarding loans to directors is not
(d) The Company has not revalued its Property, Plant applicable to the Company by virtue of Notification No.
& Equipment (including Right of Use assets) or G.S.R. 463(E) dated 05.06.2015 issued by the Ministry
intangible assets during the year. of Corporate Affairs, Govt. of India. In our opinion and
according to the information and explanations given
(e) No proceedings have been initiated or pending
to us, the Company has complied with the provisions
against the Company for holding any benami
of Section 186 of the Act with respect to the loans and
property under the Benami Transactions
investments made.
(Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder. v) According to the information and explanation given to
us and based on our audit procedure, the company has
ii) (a)
The physical verification of inventory (excluding
not accepted any deposits within the meaning of section
stocks lying with third parties) has been conducted
73 to 76 of the Act or any other relevant provisions of the
at reasonable intervals by the Management during
Companies Act, 2013 and the Companies (Acceptance
the year. In respect of inventory lying with third
of Deposit) Rules 2014.
parties, these have substantially been confirmed by
them. In respect of inventories of stores and spares, vi) We have broadly reviewed the books of account and
the Management has a verification programme records maintained by the Company pursuant to
with appropriate procedures designed to cover the Companies (Cost Records and Audit) Rules 2014
the items over a period of three years, which in our prescribed by the Central Government under section
opinion, is appropriate. The discrepancies noticed 148(1) of the Companies Act, 2013 and are of the opinion

that prima facie the prescribed accounts and records have been made and maintained. However, we are not required to and
have not carried out any detailed examination of such accounts and records.
vii) (a) According to the information and explanations given to us, in our opinion, the Company is generally regular in depositing
with appropriate authorities undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees’
Annual Review
State Insurance, Income Tax, Sales Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, Cess and any
other statutory dues as applicable to it.
(b) There were no undisputed amount payable in respect of Goods and Service Tax, Provident Fund, Employee State
Insurance, Income Tax, Sales Tax, Service Tax, duty of Customs, duty of Excise, Value added Tax, Cess and any other
Statutory dues as at March 31, 2023 for a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the particulars of Goods and Service Tax, Income Tax, Sales
Tax, Service Tax, duty of Customs, duty of Excise, Value Added Tax, which have not been deposited on account of
Corporate Profile
dispute are as under:
(` in Crore)
Sl. Name of the Nature of Pending Amount paid Amount not

Forum where dispute is pending
No. Statute the Dues Amount under protest deposited
125.27 12.44 112.83 Assessing Officer
Central Sales Tax Dy. Commissioner /Jt.
Act, Value Added 515.34 105.69 409.65 Commissioner/ Commissioner
Sales Tax, (Appeals)
1 Tax and Sales Tax
VAT
Board's Report
Act of various 231.83 92.36 139.47 Appellate Tribunal
States 36.96 1.67 35.29 High Court
4.84 4.84 - Supreme Court
43.79 - 43.79 Assessing Officer
5.60 0.10 5.50 Commissioner (Appeals)
2 Central Excise Act, Excise Duty
93.08 5.22 87.86 Appellate Tribunal
1944
27.49 - 27.49 High Court
Service Tax under Commissioner (Appeals) / Other
4.59 0.47 4.12
3 the Finance Act, Service Tax Appellate Authority
1994 524.26 11.87 512.39 Appellate Tribunal
5.80 5.80 - High Court
Custom
4 Customs Act,1962 Commissioner (Appeals) / Other
Duty 18.36 0.01 18.35
Appellate Authority
5 GST Act GST 4.14 0.18 3.96 Commissioner (Appeals)
6 Income Tax Income Tax 0.43 0.43 - Commissioner (Appeals)
Income Tax 13.87 - 13.87 Assessment Authority (Libya)
7 Income Tax
(Foreign) 10.30 - 10.30 Rawandan Court of Appeals
viii) According to the records of the Company examined b) Company is not a declared wilful defaulter by any Additional Information
by us and the information and explanations given to bank or financial institution or other lender.
us, no transactions have been recorded in the books of
c) The Company has not taken any Term Loan during
accounts which have been surrendered or disclosed as
the year and there are no outstanding term loan
income during the year in the tax assessments under the
at the beginning of the year and hence, reporting
Income Tax Act, 1961.
under clause 3(ix) (c) of Order is not applicable.
ix) According to the records of the Company examined by
Notice
d) According to the information and explanation given

us and the information and explanations given to us:
to us, and the procedures performed by us, and on
a) Company has not defaulted in repayment of loans overall examination of the financial statement of
or other borrowings or in the payment of interest the company, we report that no funds raised on
thereon to any lender. short-term basis have been used for long –term
purposes by the company.

e) According to the information and explanation given xiv) (a)
In our opinion and based on examination,
to us, and on an overall examination of the financial the company has an internal audit system
statement of the company, we report that the commensurate with the size and nature of its
company has not taken any funds from any entity business
or person on account of or to meet the obligations
(b) We have considered the internal audit report of the
of its joint ventures.
company issued till date, for the period under audit.
f) According to the information and explanation given
xv) According to information and explanation given to
to us, and procedures applied by us, we report that
us, in our opinion during the year Company has not
the company has not raised any loans during the
entered into any non-cash transactions with directors
year on the pledge of securities held in its joint
or persons connected with its directors and hence
ventures.
provisions of section 192 of the Companies Act, 2013
x) a) The Company has not raised any monies by way of are not applicable to the company.
initial public offer or further public offer (including
xvi) (a)
In our opinion, Company is not required to be
debt instruments) hence reporting under clause
registered under section 45-IA of the Reserve Bank
3(x) (a) of the Order is not applicable.
of India Act, 1934. Hence, reporting under clause
b) During the year, the Company has not made any 3(xvi) (a), (b) and (c) of the Order is not applicable.
preferential allotment or private placement of
(b) In our opinion, the Company is not Core investment
shares or debentures (fully or partly or optionally)
Company and hence reporting under clause 3(xvi)
and hence reporting under clause 3(x) (b) of the
(b) is not applicable.
Order is not applicable.
xvii) The company has not incurred cash losses in the current
xi) a)
During the course of our examination of the
and has not incurred cash losses in the immediately
books and records of the Company, carried out in
preceding financial year.
accordance with the generally accepted auditing
practices in India, and according to the information xviii) There has been no resignation of the statutory auditors
and explanations given to us, no fraud by the during the year.
Company or any fraud on the Company by its
xix) According to the information and explanations given
officers or employees has been noticed or reported
to us and on the basis of the financial ratios, ageing
during the year, nor we have been informed of such
and expected dates of realization of financial assets
case by the management.
and payment of financial liabilities, other information
b) No report under sub-section (12) of section 143 of accompanying the financial statements, our knowledge
the Companies Act, has been filed in Form ADT-4 as of the Board of Directors and management plans and
prescribed under rule 13 of Companies (Audit and based on our examination of the evidence supporting
Auditors) Rules, 2014 with Central Government. the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty
c) We have taken into consideration the whistle
exists as on the date of the audit report that Company is
blower complaints received by the company during
not capable of meeting its liabilities existing at the date of
the year while determining the nature, timing and
balance sheet as and when they fall due within a period
extend of audit procedures.
of one year from the balance sheet date. We, however,
xii) Since the Company is not a Nidhi Company, provisions state that this is not an assurance as to the future viability
of clause no. 3(xii) of the Order is not applicable to the of the Company. We further state that our reporting is
Company. based on the facts up to the date of the audit report and
we neither give any guarantee nor any assurance that all
xiii) According to the information and explanations, all the
liabilities falling due within a period of one year from the
transactions with related parties are in compliance with
balance sheet date, will get discharged by the Company
section 177 and 188 of the Companies Act, 2013 where
as and when they fall due.
ever applicable and the details have been disclosed in
the Financial Statement, as required by the applicable
accounting standard.

xx) According to the records of the Company examined by (b) In respect of ongoing projects, the Company has
us and the information and explanations given to us: transferred unspent Corporate Social Responsibility
amount as at the end of previous financial year, to a
(a) There are no unspent amount towards Corporate
Special account within a period of 30 days from the
Social Responsibility (CSR) on other than ongoing
Annual Review
end of the said financial year in compliance with
projects requiring a transfer to a Fund specified in
the provision of section 135(6) of the Act.
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.
Corporate Profile
FRN - 315104E FRN - 008567C FRN - 000709C/C400277
Board's Report
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi
Date: May 26, 2023
Notice

“ANNEXURE B” TO THE INDEPENDENT AUDITORS’ REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF BHARAT HEAVY ELECTRICALS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Bharat Heavy Electricals Limited (“the Company”)
as of March 31, 2023 in conjunction with our audit of the financial reporting included obtaining an understanding of
Standalone financial statements of the Company for the year internal financial controls over financial reporting, assessing
ended on that date. the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal
Management’s Responsibility for Internal Financial control based on the assessed risk. The procedures selected
Controls depend on the Auditor’s judgment, including the assessment
of the risks of material misstatement of the financial
The Company’s management is responsible for establishing statements, whether due to fraud or error.
and maintaining internal financial controls based on the
internal control over financial reporting criteria established We believe that the audit evidence we have obtained is
by the Company considering the essential components sufficient and appropriate to provide a basis for our audit
of internal control stated in the Guidance Note on Audit opinion on the Company’s internal financial controls system
of Internal Financial Controls over Financial Reporting over financial reporting.
issued by the Institute of Chartered Accountants of India.
These responsibilities include the design, implementation Meaning of Internal Financial Controls Over Financial
and maintenance of adequate internal financial controls Reporting
that were operating effectively for ensuring the orderly
A Company’s internal financial control over financial reporting
and efficient conduct of its business, including adherence
is a process designed to provide reasonable assurance
to Company’s policies, the safeguarding of its assets, the
regarding the reliability of financial reporting and the
prevention and detection of frauds and errors, the accuracy
preparation of financial statements for external purposes in
and completeness of the accounting records, and the timely
accordance with generally accepted accounting principles. A
preparation of reliable financial information, as required
Company’s internal financial control over financial reporting
under the Companies Act, 2013.
includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
Auditors’ Responsibility and fairly reflect the transactions and dispositions of the
Our responsibility is to express an opinion on the Company’s assets of the Company; (2) provide reasonable assurance that
internal financial controls over financial reporting based on transactions are recorded as necessary to permit preparation
our audit. We conducted our audit in accordance with the of financial statements in accordance with generally accepted
Guidance Note on Audit of Internal Financial Controls Over accounting principles, and that receipts and expenditures
Financial Reporting (the “Guidance Note”) and the Standards of the Company are being made only in accordance
on Auditing, issued by ICAI and deemed to be prescribed with authorisations of management and directors of the
under section 143(10) of the Companies Act, 2013, to the Company; and (3) provide reasonable assurance regarding
extent applicable to an audit of internal financial controls, prevention or timely detection of unauthorised acquisition,
both applicable to an audit of Internal Financial Controls use, or disposition of the Company’s assets that could have a
and, both issued by the Institute of Chartered Accountants material effect on the financial statements.
of India. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform Inherent Limitations of Internal Financial Controls Over
the audit to obtain reasonable assurance about whether Financial Reporting
adequate internal financial controls over financial reporting
Because of the inherent limitations of internal financial
was established and maintained and if such controls operated
controls over financial reporting, including the possibility
effectively in all material respects.
of collusion or improper management override of controls,
Our audit involves performing procedures to obtain audit material misstatements due to error or fraud may occur and
evidence about the adequacy of the internal financial not be detected. Also, projections of any evaluation of the
controls system over financial reporting and their operating internal financial controls over financial reporting to future
effectiveness. Our audit of internal financial controls over periods are subject to the risk that the internal financial control

over financial reporting may become inadequate because of reporting were operating effectively as at March 31, 2023,
changes in conditions, or that the degree of compliance with based on the internal control over financial reporting criteria
the policies or procedures may deteriorate. established by the Company considering the essential
components of internal control stated in the Guidance
Annual Review
Opinion Note on Audit of Internal Financial Controls Over Financial
Reporting issued by the Institute of Chartered Accountants
In our opinion, the Company has, in all material respects,
of India.
an adequate internal financial controls system over financial
reporting and such internal financial controls over financial
Corporate Profile
FRN - 315104E FRN - 008567C FRN - 000709C/C400277
Board's Report
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi
Date: May 26, 2023
Notice

“ANNEXURE C” TO INDEPENDENT AUDITOR’S REPORT
Directions issued by the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013 indicating
the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of Bharat Heavy Electricals
Limited (Standalone) for the year 2022-23
S. No. Areas Examined Replies

1 Whether the Company has system in place to process Yes, the Company has system in place to process all the
all the accounting transactions through IT system. accounting transactions through IT system at each Branch.
If yes, the implications of processing of accounting However, each Branch is using different accounting
transactions outside IT system on the integrity of the Softwares. Based on our Audit & Branch Auditor’s Report,
accounts along with the financial implications, if any wherever the accounting transactions are based on workings
may be stated. outside IT System, no instances of lack of integrity of accounts
and financial implications have been noticed/reported.
2 Whether there is any restructuring of an existing loan According to the information and explanations given to us
and based on our examination of the records of the company,
or cases of waiver / write off of debts / loans / interest
etc. made by a lender due to the company’s inability there has been no restructuring/ waiver/ write off of debts/
to repay the loan? If yes, the financial impact may be loans/interest etc. made by a lender due to the company’s
stated. Whether such cases are properly accounted inability to repay the loan
for? (In case, lender is a government company, then
this direction is also applicable for statutory auditor of
lender company).
3 Whether funds (grants/subsidy etc.) received / Fund received / receivable for specific schemes from Central
receivable for specific schemes from Central / State / State agencies were properly accounted for /utilized as per
Government or its agencies were properly accounted its term and conditions.
for /utilized as per its term and conditions? List the
cases of deviation.
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

187
Annual Review
Standalone Financial Statements......................................... 190
Corporate Profile
Board's Report
Financial Statements (SFS)
Notice

Standalone Balance Sheet as at March 31, 2023
(` in Crore)
Particulars Note Page As at March 31, 2023 As at March 31, 2022
A. ASSETS
1. Non-current assets
(a) Property, plant and equipment 3a 203 2408.74 2336.34
(b) Capital work-in-progress 3b 203 344.59 422.32
(c) Intangible assets 4a 204 67.24 62.12
(d) Intangible assets under development 4b 204 9.26 8.66
(e) Financial assets
(i) Investments 5 212 669.54 669.71
(ii) Trade receivables 6 213 3415.54 3203.84
(iii) Other financial assets 7 215 83.96 4169.04 86.73 3960.28
(f) Deferred tax assets (net of liabilities) 8 216 3422.62 3530.08
(g) Other non-current assets 9 217 19300.14 18526.54
Total non-current assets 29721.63 28846.34
2. Current assets
(a) Inventories 10 218 6755.90 6560.21
(b) Financial assets
(i) Trade receivables 6 213 3128.35 3024.75
(ii) Cash and cash equivalents 11 219 1560.52 732.62
(iii) Bank balances other than cash and 12 219 5082.06 6421.07
cash equivalents
(iv) Other financial assets 7 215 278.23 10049.16 211.56 10390.00
(c) Current tax assets (net) 13 219 226.38 119.24
(d) Other current assets 9 217 13050.84 10792.53
Total current assets 30082.28 27861.98
TOTAL ASSETS 59803.91 56708.32
B. EQUITY AND LIABILITIES:
3. Equity
(a) Equity share capital 14 220 696.41 696.41
(b) Other equity 15 221 26565.75 26274.75
Total equity 27262.16 26971.16
4. Liabilities
4.1 Non-current liabilities
(a) Financial liabilities
(i) Lease Liabilities 16 221 33.75 35.12
(ii) Trade payables 17 222
(i) T
otal outstanding dues of micro 128.11 127.45
enterprises and small enterprises
(ii) Total outstanding dues of creditors 2065.92 2004.48
other than micro enterprises and
small enterprises
(iii) Other financial liabilities 18 224 255.70 2483.48 215.10 2382.15
(b) Provisions 19 224 4101.02 3771.21
(c) Other non-current liabilities 20 224 2605.81 2212.65
Total non-current liabilities 9190.31 8366.01

Standalone Balance Sheet as at March 31, 2023
(` in Crore)
Annual Review
4.2. Current liabilities
(i) Borrowings 21 225 5385.00 4745.00
(ia) Lease Liabilities 16 221 34.76 49.81
(i) Total outstanding dues of micro 1211.53 745.82
Corporate Profile
small enterprises
(b) Provisions 19 224 2796.63 3066.70
(c) Other current liabilities 20 224 3962.29 4635.96
Total current liabilities 23351.44 21371.15
Total liabilities 32541.75 29737.16
TOTAL EQUITY AND LIABILITIES 59803.91 56708.32
Basis of preparation, measurement and significant accounting policies 2 198
Board's Report
The accompanying notes [1-57] are an integral part of these financial statements

DIN: 09703643
As per our report of even date

FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023
Notice

Standalone Statement of Profit and Loss
For the year ended March 31, 2023
(` in Crore)
Particulars Note Page For the year ended For the year ended
March 31, 2023 March 31, 2022
INCOME
Revenue from operations 22 226 23364.94 21211.09
Other income 23 227 514.81 367.81
TOTAL INCOME 23879.75 21578.90
EXPENSES
Cost of raw materials consumed 5875.28 5062.40
Purchases of Bought out items 4657.33 4141.75
Civil, erection and engineering expenses 5421.08 4792.61
Consumption of stores & spares 404.18 271.44
"Changes in inventories of finished goods, 24 227 (57.15) 525.64

work in progress and Scrap"
Employee benefits expense 25 228 5700.63 5516.84
Other Expenses 26 228 647.03 162.49
Finance costs 27 231 521.43 354.72
3.1 206
Depreciation & amortisation expense 260.34 314.06
4.1 211
TOTAL EXPENSES 23430.15 21141.95
PROFIT BEFORE TAX 449.60 436.95
Tax expenses 28 232
a) Current tax (111.22) (77.13)
b) Deferred tax 113.27 2.05 103.84 26.71
PROFIT FOR THE YEAR (A) 447.55 410.24

Standalone Statement of Profit and Loss
Annual Review
(` in Crore)
March 31, 2023 March 31, 2022
OTHER COMPREHENSIVE INCOME 29 232
Items that will not be reclassified to profit or loss (net

of tax)
Corporate Profile
-Remeasurement of defined employee benefits (17.27) 76.87
OTHER COMPREHENSIVE INCOME FOR THE YEAR (17.27) 76.87

(B)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 430.28 487.11

(A+B)
Earnings per equity share 30 233
Board's Report
(1) Basic [Face value of ` 2 each] 1.29 1.18
(2) Diluted [Face value of ` 2 each] 1.29 1.18



DIN: 09703643
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

Notice
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Standalone Statement of Changes in Equity
A. Equity Share Capital

(` in Crore)
Number of shares Amount

Equity shares of INR 2 each issued, subscribed and fully
paid
2022-23 2021-22 2022-23 2021-22
Balance at the beginning of the year 3482063355 3482063355 696.41 696.41
Changes in equity share capital during the year - - - -
Balance at the end of the year 3482063355 3482063355 696.41 696.41
B. Other equity
(` in Crore)
Reserves and surplus

Other items
Total
of other
Description Capital other
Capital General Retained comprehensive
Redemption Equity
Reserves Reserves Earnings income
Reserves
Balance as at April 01, 2022 35.18 37.87 30,476.66 (3956.70) (318.26) 26,274.75
Changes in accounting policy or prior

- - - - - -
period errors
Reinstated balance as at April 01, 2022 35.18 37.87 30,476.66 (3956.70) (318.26) 26,274.75
Add: Total comprehensive Income for the

447.55 (17.27) 430.28
year
Less: Final dividend [ Note 31] (139.28) (139.28)
Balance as at March 31, 2023 35.18 37.87 30,476.66 (3648.43) (335.53) 26,565.75

Standalone Statement of Changes in Equity
Annual Review
(` in Crore)
Other items
Total
Capital of other
Description Capital General Retained other
Redemption comprehen-
Equity
Reserves Reserves Earnings sive income
Reserves
Balance as at April 01, 2021 35.18 37.87 30,476.66 (4366.94) ( 395.13) 25,787.64
Corporate Profile
Changes in accounting policy or prior period
- - - - - -
errors
Reinstated balance as at April 01, 2021 35.18 37.87 30,476.66 (4366.94) ( 395.13) 25,787.64
Add: Total Comprehensive Income for the

410.24 76.87 487.11
year
Board's Report
Balance as at March 31, 2022 35.18 37.87 30,476.66 (3956.70) (318.26) 26,274.75

DIN: 09703643

FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Notice
Date: May 26, 2023

Standalone Statement of Cash Flows
(` in Crore)
Particulars For the year ended For the year ended
March 31, 2023 March 31, 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit /(Loss) before tax 449.60 436.95
Adjustments for :
Provision and write off (86.31) (1120.06)
Depreciation and amortisation 260.34 314.06
Finance cost (including unwinding of interest) 521.43 354.72
Interest & dividend income (447.30) (333.14)
Unrealised Foreign Exchange loss/(gain) (401.85) 19.26
Amortisation of Government Grant (8.90) (6.20)
Others (33.02) (6.61)
Cash generated / (used) in operations before working 253.99 (341.02)
capital changes
Adjustment for changes in working capital:
Trade Receivables 92.04 1881.12
Contract Assets (2370.65) (2594.15)
Inventories (192.40) 603.40
Loans, advances & other assets (262.28) 143.49
Sub total (2733.29) 33.86
Trade payable 2103.68 1300.85
Advances from customers, deposits and others (167.84) (383.70)
Provisions (308.48) (358.60)
Sub total 1627.36 558.55
Net cash (used in) / from working capital (1105.93) 592.41
Cash generated / (used) in operations (851.94) 251.39
Income Tax paid (155.54) (258.00)
Refund of income taxes 265.96 666.88
Net cash (used in) / from operating activities (741.52) 660.27
B. CASH FLOW FROM INVESTING ACTIVITIES
Redemption / maturity of bank deposits (having original 1358.78 (1251.12)
maturity of more than 3 months)
Interest received 250.72 257.93
Sale proceeds from Investment 25.42 0.00
Dividend received from joint ventures 26.18 30.35
Sale of property,plant and equipment & Intangible Assets 7.76 6.90
Purchase of property, plant and equipment & Intangible (188.40) (169.39)
Assets (Net)
Net cash (used in) / from investing activities 1480.46 (1125.33)

Standalone Statement of Cash Flows
Annual Review
(` in Crore)
March 31, 2023 March 31, 2022
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from short term borrowings 640.00 (88.78)
Proceeds / (repayment) of lease obligation (Principal) (49.77) (48.79)
Proceeds / (repayment) of lease obligation (Interest) (7.27) (9.57)
Dividend paid (139.18) (0.30)
Interest paid (354.82) (182.06)
Corporate Profile
Net cash (used in) / from financing activities (refer point 4) 88.96 (329.50)
D. Net increase/(decrease) in cash and cash equivalents 827.90 (794.56)
Opening balance of cash and cash equivalents 732.62 1527.18
Closing balance of cash and cash equivalents [Refer Note 11] 1560.52 732.62
(1) Statement of cash flow has been prepared under the indirect method as set out in the Ind AS 7 - Statement of Cash flow.
(2) Previous year's figures have been regrouped/reclassifed wherever applicable
(3) Closing balance of Cash & Cash Equivalents includes exchange variation loss of ` Nil Cr (Previous year ` 0.15 cr).
Board's Report
(4) Changes in liabilities arising from financing activities are available at Note [21 vi] and Note 36 b]
(5) During the year the company has accounted for income tax refund amounting to `266 Cr, including interest income of
` 106 Cr.


DIN: 09703643
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

Notice

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Notes to the financial statements for the year ended March 31, 2023
Note [1] – Company Information i) Revenue
Bharat Heavy Electricals Limited (“BHEL or “the Company”) The Company uses input method based on cost
is a public limited company domiciled in India and has its approach in accounting for the revenue in respect of
registered office at BHEL House, Siri Fort, New Delhi -110049 construction contracts. Use of input method requires
the Company to estimate its costs relative to the total
The Company is an integrated power plant equipment expected costs in the satisfaction of its performance
manufacturer and is engaged in design, engineering, obligation. The estimates are assessed continually
manufacture, construction, testing, commissioning and during the term of the contract and the company re-
servicing of a wide range of products and services for the core measures its progress towards complete satisfaction of
sectors of the economy, viz, Power, Transmission, Industry, its performance obligations satisfied over time at the
Transportation, Renewable Energy, Water, Oil & Gas and end of each reporting period.
Deference & Aerospace.
Company updates its estimated transaction price
Note [2] - Significant accounting policies at each reporting period, to represent faithfully the
circumstances present at the end of the reporting period
1. Basis of preparation of Financial Statements and the changes in circumstances during the reporting
a) Statement of Compliance period.
The financial statements have been prepared in ii) Property, plant and equipment
accordance with Indian Accounting Standards (Ind-
The charge in respect of periodic depreciation is derived
AS) as notified by Ministry of Corporate Affairs under
after estimating the asset’s expected useful life and
the Companies (Indian Accounting Standards) Rules,
the expected residual value at the end of its life. The
2015 and subsequent amendments thereof as well as
depreciation method, useful lives and residual values
with the additional requirements applicable to financial
of Company’s assets are estimated by management at
statements as set forth in Companies Act, 2013 and
the time the asset is acquired and reviewed during each
amended thereof.
financial year.
b) Basis of measurement
iii) Employee Benefit Plans
The financial statements have been prepared on a going
Employee defined benefit plans and long term benefit
concern basis and on an accrual method of accounting.
plans are measured on the basis of actuarial assumptions.
Historical cost is used in preparation of the financial
However, any changes in these assumptions may have
statements except as otherwise mentioned in the policy.
impact on the reported amount of obligation and
c) Functional and presentation currency expenses.
The financial statements are prepared in INR, which is the iv) Provisions and contingencies
Company’s functional currency.
Assessments undertaken in recognising provisions
d) Use of Estimates and Judgments and contingencies have been made as per the best
judgement of the management based on the current
The preparation of the financial statements in conformity
available information.
with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of 2. Property Plant & Equipment (PPE)
accounting policies and the reported amounts of assets,
Property, plant and equipment are carried at cost less
liabilities, income and expenses. Actual results may
accumulated depreciation and accumulated impairment
differ from these estimates. Estimates and underlying
losses, if any.
assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised prospectively. Depreciation on property, plant and equipment (other
than those used abroad under contract) is charged on
Critical estimates and judgements in applying accounting
straight-line method as per the useful life prescribed in
policies
Schedule II of the Companies Act, 2013, except in the
Estimates and judgements made in applying accounting following items where estimated useful life is based on
policies that have significant effect on the amounts recognized technically assessed estimated useful life :-
in the financial statements are as follows:

effective interest rate method. Initial direct costs
Asset Category (Years)
incurred are included in the initial measurement of
Plant & equipment 15-30
the finance lease receivable and reduce the amount of
Buildings 5-60
income recognized over the lease term.
Annual Review
Electricals installations & eqipments 10-30
Erection equipment, Capital tools & tackles 5 Lease income arising from operating lease is recognized
Drainage, sewerage & water supply 30 as income over the lease period on a straight line basis
Servers and networks 5 except where the periodic increase in lease rentals is in
Solar Power Generation Plant 25 line with expected general inflation.
Depreciation methods, useful lives and residual values 4. Intangible assets

are reviewed in each financial year and changes, if any,
Intangible items costing more than ` 10000/- are
are accounted for prospectively. Right-of-use assets
evaluated for capitalization and are carried at cost
are amortised over the shorter of the lease term and
Corporate Profile
less accumulated amortization and accumulated
their useful lives unless it is reasonably certain that the
impairment, if any.
Company will obtain ownership by the end of the lease
term Intangible assets are amortised in Statement of Profit
and Loss on a straight-line method over the estimated
Property Plant & Equipment costing `10,000/- or less
useful lives from the date that they are available for use.
and those whose written down value as at the beginning
The estimated useful lives for the intangible assets are
of the year is `10,000/- or less, are depreciated fully.
as follows:
At erection/project sites: The cost of roads, bridges and
Software 3 years
culverts is fully amortized over the tenure of the contract,
Board's Report
while sheds, railway sidings, electrical installations and Others 10 years.
other similar enabling works (other than temporary
Intangible assets having WDV ` 10000/- or less at the
structures) are depreciated over the tenure of the
beginning of the year are amortized fully.
contract after retaining residual value, if any.
Amortization period and amortization methods are
Assets used outside India pursuant to long term contracts
reviewed in each financial year and changes, if any, are
are depreciated over the duration of the initial contract.
accounted for prospectively.

Temporary structures are fully depreciated in the year of
Expenditure on research activities is recognized in
construction.
statement of profit and loss as incurred. Expenditure
Significant components with different useful lives are on development activities is capitalized only if the
accounted for and depreciated separately expenditure can be measured reliably, the product or
process is technically and commercially feasible, future
3. Leases economic benefits are probable and the company
At the inception of an arrangement, the Company intends to and has sufficient resources to complete
determines whether such an arrangement is or contains development and to use or sell the asset. The expenditure
a lease. capitalized includes the cost of materials, direct labour,
overhead costs that are directly attributable to preparing
Upon initial recognition, assets taken on lease are the asset for its intended use, and borrowing costs, if
capitalized under right-of-use assets at cost which any.
comprises initial measurement of lease liability at present
value, initial lease payments less incentives, initial direct Assets acquired for purposes of research and
costs and estimated cost of dismantling and removing development are capitalized.
the underlying assets, if any.
5. Borrowing costs
Lease payments made under leases are apportioned
between the finance expense and the reduction of Borrowing costs directly attributable to the acquisition,
the outstanding lease liability. The finance expense is construction or production of qualifying assets, are
allocated to each period during the lease term so as added to the cost of such assets.
Notice
to produce a constant periodic rate of interest on the

An asset that necessarily takes a substantial period of
remaining balance of the liability.
time, considered as more than twelve months, to get
For assets given on finance lease, the Company ready for its intended use or sale is a qualifying asset for
recognizes finance income over the lease term using the purpose.

All other borrowing costs are recognized in the Foreign currency denominated monetary assets and
statement of profit and loss in the period in which they liabilities are translated into the functional currency at
are incurred. exchange rates in effect at the end of each reporting
period. Foreign exchange gains or losses arising from
6. Investments in Subsidiaries & Joint ventures settlement and translations are recognized in the
statement of profit and loss.
Investments in subsidiaries and joint ventures are
accounted at cost less impairment losses, if any. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured
If the intention of the management is to dispose the at historical cost are translated at the exchange rate
investment in near future, it is classified as held for sale prevailing at the date of transaction.
and measured at lower of its carrying amount and fair
value less costs to sell.
10. Employee Benefits
7. Inventories Defined contribution plans

Inventory is valued at cost or net realizable value, The Company’s contribution to Pension fund including
whichever is lower. In respect of valuation of finished Family Pension Fund for the employees is covered
goods and work-in-progress, cost means factory cost. under defined contribution plan and is recognized as
In respect of raw material, components, loose tools, employee benefit expense in statement of profit and
stores and spares cost means weighted average cost. loss in the periods during which services are rendered
by employees.
8. Revenue Recognition
Defined benefit plans
Revenue is recognized to depict the transfer of promised
The Company’s gratuity scheme, provident fund scheme,
goods or services to customers in an amount that
travel claims on retirement and post-retirement medical
reflects the consideration to which the entity expects to
facility scheme are in the nature of defined benefit plans.
be entitled in exchange for those goods or services.
The liability recognized in the balance sheet in respect
In relation to construction and long term service
of these defined benefit plan is the present value of the
contracts, the company transfers control of goods or
defined benefit obligation at the end of the reporting
services to the customer and recognizes revenue over
period less the fair value of plan assets, if any. The
the time. Revenue is recognized using input method
defined benefit obligation is calculated annually by
based on the cost approach. Progress towards complete
independent actuaries using the projected unit credit
satisfaction of performance obligation satisfied over
method. The present value of the defined benefit
time is remeasured at reporting period end.
obligation is determined by discounting the estimated
Revenue from sale of goods and services is recognized future cash outflows using an appropriate government
on the transfer of control to the customer and upon bond rate that have terms to maturity approximating to
the satisfaction of performance obligations under the the terms of the related liability.
contract.
Remeasurements comprising actuarial gains and losses
Other Income as well as the difference between the return on plan
Dividend income is recognized in statement of profit assets and the amounts included in net interest on the
and loss on the date on which the Company’s right to net defined benefits liability (asset) are recognized in
receive payment is established. other comprehensive income (net of income tax).
Interest Income is recognized using effective interest Other expenses related to defined benefit plans are
rate method. recognized in statement of profit and loss.
Claims for export incentives/ duty drawbacks, duty Long term Leave Liability
refunds and insurance are accounted for on accrual
The Company measures the expected cost of
basis.
accumulating compensated absences as the additional
amount expected to be paid as a result of the unused
9. Foreign currency Translation/Transaction
entitlement that has accumulated at the end of the
Transaction in foreign currencies are recorded at the reporting period. Expense on non-accumulating
exchange rate prevailing on the date of the transaction. compensated absences is recognized in the period in

which the absences occur. The Company records a Current tax is the expected tax payable on the taxable
liability for accumulated balance based on actuarial income for the year, using tax rates (tax laws) enacted or
valuation determined using projected unit credit substantively enacted by the end of the reporting period
method. Remeasurements and other expenses related and includes adjustment on account of tax in respect of
Annual Review
to long term benefit plans are recognized in statement previous years.
of profit and loss.
Deferred tax is recognized using the balance sheet
method, providing for temporary difference between
11. Provisions the carrying amount of an asset or liability in the balance
(i)
Claims for liquidated damages against the Company sheet and its tax base.
are recognized in the financial statements based Deferred tax is measured at the tax rates that are
on the management’s assessment of the probable expected to apply when the temporary differences are
outcome with reference to the available information either realised or settled, based on the laws that have
Corporate Profile
supplemented by experience of similar transactions. been enacted or substantively enacted by the end of
(ii)
The Company provides for anticipated costs for reporting period.
warranties when it recognizes revenues on the related A deferred tax asset is recognized to the extent that it
products or contracts and maintain the same throughout is probable that future taxable profit will be available
the warranty period. The provision is based on historical against which the temporary difference can be utilized.
experience / technical assessment.
The carrying amount of Deferred tax assets are reviewed
(iii) When it is probable that total contract costs will exceed at each reporting period and are reduced to the extent
total contract revenue, the expected loss is recognised that it is no longer probable that the related tax benefit
immediately.
Board's Report
will be realized.
(iv) Other provisions are recognized if, as a result of a past Additional Income tax that arise from the distribution
event, the Company has a present legal or constructive of dividends are recognized at the same time when the
obligation that can be estimated reliably, and it is liability to pay the related dividend is recognized.
probable that an outflow of economic benefits will be
required to settle the obligation. 14. Impairment of Assets
However, where the effect of time value of money is Impairment of financial assets

material, provisions are determined and maintained by The loss allowance in respect of trade receivables and
discounting the expected future cash flows, wherever lease receivables are measured at an amount equal to
applicable. lifetime expected credit losses.
The loss allowance in respect of all other financial
12. Government Grants
assets, which are required to be impaired, are measured
Government grants are recognized only when there at an amount equal to lifetime expected credit losses if
is reasonable assurance that the conditions attached the credit risk on that financial instrument has increased
to them shall be complied with, and the grants will be significantly since initial recognition. However, if, at the
received. Non-monetary grants are accounted at Fair reporting date, the credit risk on a financial instrument
Value of assets and are treated as deferred income. has not increased significantly since initial recognition,
Deferred income is recognized in the statement of the loss allowance is measured at an amount equal to
profit and loss on a systematic and rational basis over 12-month expected credit losses.
the useful life of the asset. Government grants related
Impairment of Non- Financial Assets
to revenue are recognized on a systematic basis in the
statement of profit and loss over the periods necessary The carrying amount of cash generating units is reviewed
to match them with the related costs which they are at each reporting date where there is any indication of
intended to compensate. impairment. An impairment loss is recognized in the
statement of profit and loss where the carrying amount
13. Income Taxes exceeds the recoverable amount of the cash generating
units. Impairment losses recognised in prior periods are
Notice
Income tax expense comprises current tax and deferred assessed at each reporting date for any indications that
tax. Income tax expense is recognized in statement of the loss has decreased or no longer exists.
profit and loss except to the extent that it relates to
items recognized in other comprehensive income or An impairment loss is reversed if there has been a change
directly in equity. in the estimates used to determine the recoverable

amount. An impairment loss is reversed only to the account any discount or premium on acquisition and fees or
extent that the asset’s carrying amount does not exceed costs that are an integral part of the EIR. The EIR amortization
the carrying amount that would have been determined, is included in finance income in the statement of profit and
net of depreciation or amortisation, if no impairment loss. The losses arising from impairment are recognized in
loss had been recognised. the statement of profit and loss.
15. Segment Reporting B. FVTPL Category –
Revenue and expenses are identified to segments on the Financial instruments classified in this category are
basis of their relationship to the operating activities of the subsequently carried at fair value with changes recorded
segment. Revenue, expenses, assets and liabilities which in the statement of profit and loss. Directly attributable
are not allocable to segments on a reasonable basis, are transaction costs are recognised in statement of profit and
included under “Unallocated revenue/ expenses/ assets/ loss as incurred.
liabilities”. Non-derivative financial liabilities are subsequently measured
as below:
16. Financial Instruments
Subsequent to initial recognition, non – derivative financial
i) Non-derivative financial instruments liabilities are measured at amortised cost using the effective
interest method.
Non derivative financial instruments are classified as :
– Financial assets, measured at (a) amortized cost and (b) ii) Derivative financial instruments
fair value through Profit and Loss (“FVTPL”).
Embedded derivatives, if any, having material impact,
– Financial liabilities carried at amortized cost. are separated from the host contract and accounted for
separately if the economic characteristics and risks of the host
Initially, all financial instruments are recognized at their fair
contract and the embedded derivative are not closely related,
value. Transaction costs are included in determining the
a separate instrument with the same terms as the embedded
carrying amount, if the financial instruments are not measured
derivative would meet the definition of a derivative, and the
at FVTPL. Financial assets are derecognized when substantial
combined instrument is not measured at fair value through
risks and rewards of ownership of the financial asset have
profit and loss.
been transferred. In cases where substantial risks and rewards
of ownership of the financial assets are neither transferred Derivatives are recognized and measured initially at fair value.
nor retained, financial assets are derecognized only when Attributable transaction cost are recognized in statement
the Company has not retained control over the financial of profit and loss as cost. Subsequent to initial recognition,
asset. Financial liabilities are derecognized when contractual derivatives are measured at fair value through profit and loss.
obligations are discharged or cancelled or expired.
Non-derivative financial assets are subsequently measured as 17. Cash and Cash Equivalent
below: Cash and cash equivalents comprise cash at bank and
on hand. It includes term deposits and other short-
A. Amortized cost – term money market deposits with original maturities
“Financial Instruments at amortized cost” are subsequently of three months or less that are readily convertible to
measured at amortized cost using the effective interest rate known amounts of cash and which are subject to an
(EIR) method. Amortized cost is calculated by taking into insignificant risk of changes in value.

Note [3a] - Non current assets
Property, plant and equipment
Annual Review
Refer point 2 of Note [2] for accounting policy on property, plant and equipment (PPE) (` in Crore)
Particulars As at March 31, 2023 As at March 31, 2022

Gross block 6620.97 6330.89
Less: Accumulated depreciation 4212.23 3994.55
Net block (details refer to note 3.1) 2408.74 2336.34
The Net block includes ` 155.26 Cr (Previous Year ` 154.83 Cr) in respect of RoU assets.
Company had opted for exemption under IndAS 101, and accordingly carrying value as on 31.03.2015 was considered as deemed
Corporate Profile
cost on IndAS transition date.
Note [3b] - Non current assets

Capital work in progress (` in Crore)

Plant & machinery and other equipments:
Board's Report
Under Erection/ Fabrication/awaiting erection 82.41 131.43
In transit 6.95 89.36 9.37 140.80
Construction work-in-progress -Civil 253.96 280.12
Construction stores (including in transit) 1.27 1.40
Total 344.59 422.32

CWIP Ageing schedule - As at March 31, 2023 (` in Crore)
Particulars Amount in CWIP for a period of

Less than 1 Year 1-2 Years 2-3 Years More than 3 Years Total
Projects in progress 115.98 53.36 73.56 89.13 332.03
Projects temporarily suspended - 0.59 - 11.97 12.56
CWIP Completion Schedule (CWIP which are overdue or has exceeded its cost compared to its original plan) - As
at March 31, 2023 (` in Crore)
Particulars To be completed in
Less than 1 1-2 Years 2-3 Years More than 3 Years Total
Year
Projects in progress
New Building - Noida 224.76 - - - 224.76
Transformer Double bottlenecking 10.27 - - - 10.27
Other Projects less than ` 10 Crore (Total 16.99 0.09 - 0.34 17.42
Nos - 18)
Projects temporarily suspended
Notice
Equipment Fabrication Plant - Bhandara - - - 7.74 7.74

Other Projects less than ` 1 Crore (Total - 0.28 - 1.60 1.88
Nos - 4)

Particulars Amount in CWIP for a period of

Projects temporarily suspended 0.59 0.07 2.36 9.31 12.33
CWIP Completion Schedule (CWIP which are overdue or has exceeded its cost compared to its original plan) - As
at March 31, 2022
(` in Crore)
Year
Selective Catalyst Reduction Plant - 62.12 - - - 62.12
Bengaluru
Other Projects less than ` 10 Crore (Total 37.83 - - - 37.83
Nos - 25)
Other Projects less than ` 1 Crore (Total 0.07 - - 1.58 1.65
Nos - 4)

Intangible assets
Refer point 4 of Note [2] for accounting policy on intangible assets (` in Crore)

Gross block 327.88 308.92
Less: Accumulated amortisation 260.64 246.80
Company had opted for exemption under IndAS 101, and accordingly carrying value as on 31.03.2015 was considered as deemed
cost on IndAS transition date.

Intangible assets under development (` in Crore)

Intangible assets under development 9.26 8.66
Total 9.26 8.66

Intangible Assets under development ageing schedule - As at March 31, 2023 (` in Crore)
Particulars Amount of Intangible Asset under development for a period of
Annual Review
Projects in progress 5.67 1.05 - 2.54 9.26
Projects temporarily suspended - - - - -
Intangible Assets under development Completion schedule (which are overdue or has exceeded its cost
compared to its original plan) - As at March 31, 2023
(` in Crore)
Corporate Profile
Less than 1
1-2 Years 2-3 Years More than 3 Years Total
Year
Projects in progress - - - - -
Particulars Amount of Intangible Asset under development for a period of
Board's Report
Projects in progress 1.39 - 1.18 6.09 8.66
Intangible Assets under development Completion schedule (which are overdue or has exceeded its cost
compared to its original plan) - As at March 31, 2022

(` in Crore)
Year
SCR Project Know how (overdue) 4.71 - - - 4.71
Notice

NOTE 3.1 - Details of Property, Plant & Equipment
(` in Crore)
Gross Block Depreciation/ Amortization Net Block

Opening Closing Accumulated Accumulated
Description Depreciation/ Net Block Net Block
Balance Additions/ Deductions/ Balance Depreciation Depreciation Depreciation
Amortisation as at as at
as at Adjustments Adjustments as at as at Adjustments as at
for the year 31.03.2023 31.03.2022
01.04.2022 31.03.2023 01.04.2022 31.03.2023
Land - Freehold
land (including
27.71 0.02 0.00 27.73 0.00 0.00 0.00 0.00 27.73 27.71
development
expenses)
Buildings -
Freehold Buildings 1743.65 86.92 (6.49) 1824.08 669.59 56.04 (5.48) 720.15 1103.93 1074.06
Roads, bridges &

15.85 0.25 0.00 16.10 14.16 0.60 0.00 14.76 1.34 1.69
culverts
Drainage,
Sewerage & water 31.49 4.73 (0.01) 36.21 8.21 1.17 (0.01) 9.37 26.84 23.28
supply
Plant & Equipment

3209.81 121.78 (5.96) 3325.63 2390.20 117.15 (2.96) 2504.39 821.24 819.61
Railway Siding 8.85 0.00 0.00 8.85 5.31 0.44 0.00 5.75 3.10 3.54
Locomotives &
28.33 0.00 0.00 28.33 17.57 1.66 0.00 19.23 9.10 10.76
Wagons
Furniture & fixtures

62.09 9.03 (1.11) 70.01 44.08 4.60 (0.86) 47.82 22.19 18.01
Vehicles 14.33 0.57 (0.00) 14.90 10.24 1.21 (0.00) 11.45 3.45 4.09
Office and Other

141.10 7.72 (1.46) 147.36 120.11 9.69 (1.23) 128.57 18.79 20.99
equipments
Electronic Data
Processing 152.83 2.55 9.87 165.25 141.97 8.50 9.89 160.36 4.89 10.86
Equipment
Electrical
251.67 30.57 4.04 286.28 180.44 4.31 3.31 188.06 98.22 71.23
Installations
Construction
71.85 0.25 (0.21) 71.89 69.22 1.23 (0.21) 70.24 1.65 2.63
Equipment
Fixed Assets
costing upto 22.05 1.78 (0.91) 22.92 22.05 1.78 (0.91) 22.92 - -
` 10,000/-
Solar power
119.54 19.84 4.08 143.46 26.48 4.87 1.10 32.45 111.01 93.06
generation
Right-of-use
429.75 33.59 (31.37) 431.97 274.92 33.00 (31.21) 276.71 155.26 154.83
Assets
Total 6330.90 319.60 (29.53) 6620.97 3994.55 246.25 (28.57) 4212.23 2408.74 2336.35
Previous Year 6172.41 208.19 (49.71) 6330.89 3746.26 295.79 (47.50) 3994.55 2336.34 2426.15
Notes:
Gross Block (as per earlier IGAAP) as at 31.03.2023 ` 13756.12 Crore and as at 31.03.2022 ` 13507.29 Crore
Gross Block as at 31.03.2023 includes assets condemned and retired from active use ` 14.90 crore (Previous year ` 7.11 crore)
Net Block as at 31.03.2023 includes assets condemned and retired from active use ` 0.12 Crore (Previous year ` 0.12 Crore)
Gross Block excludes cost of assets purchased out of grant received from Govt of India for research as executing agency since the property does not vest
with the Company ` 237.42 crore (Previous year ` 259.64 crore)
There is no impairment loss during the year.

Table 3.1(a): Right-of-use assets includes:
(` in Crore)
Gross Block Depreciation / Amortization Net Block
Annual Review
Description Closing Accumulated Accumulated
Opening Depreciation/ Net Block Net Block
Additions/ Deductions/ Balance Depreciation Depreciation Depreciation
Balance as at Amortisation as at as at
Adjustments Adjustments as at as at Adjustments as at
01.04.2022 for the year 31.03.2023 31.03.2022
31.03.2023 01.04.2022 31.03.2023
Land (including develop-

ment expenses) 118.86 0.98 0.00 119.84 14.13 3.38 (0.00) 17.51 102.33 104.73
Buildings 1.63 0.00 0.00 1.63 0.36 0.05 0.00 0.41 1.22 1.27
Plant & Equipment 37.81 8.46 (6.26) 40.01 23.10 10.62 (6.26) 27.46 12.55 14.71
Corporate Profile
Office & other equipment 16.84 0.00 (0.33) 16.51 15.02 0.42 (0.31) 15.13 1.38 1.82
EDP Equipment 229.51 15.38 (19.13) 225.76 208.73 13.46 (19.13) 203.06 22.70 20.78
Vehicle 5.50 3.80 (2.87) 6.42 3.08 1.34 (2.74) 1.68 4.74 2.42
Others 19.61 4.97 (2.78) 21.80 10.51 3.73 (2.77) 11.46 10.34 9.10
Total 429.75 33.59 (31.37) 431.97 274.92 33.00 (31.21) 276.71 155.26 154.83
Previous Year 455.37 33.18 (58.80) 429.75 291.18 42.35 (58.61) 274.92 154.83 164.19
Board's Report
Notice

Additional disclosure of Note [3.1] details of property, plant and equipment
1. (A) Title deeds of Immovable Property not held in the name of BHEL (As on 31/03/2023)
Whether title
deed holder is a
Gross
Description of item of promoter, director
Carrying Lease/ Title deeds Property held Reason for not being held in
property (under the or relative of
value held in the name of since which date the name of the company
line item of B/S) promoter/director
(` in Crore)
or employee of
promoter/director
PPE:-
Land- Freehold 1.64 State Govt. of No 24-11-2010 Patta (Title Deed) is yet to be obtained
Tamil Nadu
Land- Freehold 1.24 State Govt. of No Various datesLand transfer documents (Handing over
Tamil Nadu between by state govt and taken over by BHEL) are
13.01.1981 toavailable indicating area and Survey Numbers.
17.02.1986 Assignment deed is yet to be issued by State
Government in favour of BHEL .
Land- Freehold 0.52 State Govt of No 1974 onwards Transfer of title deed in progress, matter taken
Telangana up with state govt. through TSIIC
Land- Freehold 0.18 State Govt. of No Since 1957Land provided through gazette of Government
Madhya Pradesh of India, title deed not available in the name of
BHEL.
Land- Freehold 0.11 State Govt of No 30-01-1961 Gazette Notification issued for acquisition of
Telangana Land for setting up of Heavy Electrical Plant
(Ref No:171,192,92-A,61,202 in the year 1961
&63
Land- Freehold 0.08 Bachha Lal S/O No 08-06-1983 Due to dispute in enhanced compensation
Late Ram Kishore Matter is sub judice in Hon'ble High court at
Allahabad. Appeal no. 659 of 1995
Land- Freehold 0.0022 B Saroja Devi No 01-04-1965 There is a dispute between Mrs. B Saroja Devi
and M/s BHEL in supreme court. The Supreme
Court has referred the case back to High Court
for disposal and the same is pending.
Land- Leasehold 68.38 464.8287 Acres No 20-03-2013 Full acquisition of proposed land not yet
(Right-of-use of in the name of completed.
assets) Maharashtra
Industrial
Development
Corporation
9.0688 Acres
in the name of
State Govt. of
Maharashtra
2.7676 Acres
in the name of
Private owners of
Land
Building - Freehold 0.11 JB Construction No 34 YEARS Title in respect of 4 Flats are in dispute
(Builder) between builder & Land Owner
Building - Freehold 0.05 Maharashtra No 34 YEARS 6 Flats in name of Cooperative Society. There
Cooperative is no dispute.
Society
Building - 2.56 State Govt. of No 01-02-1991 Maharashtra Govt. has not executed the lease
Leasehold (Right- Maharashtra of land with MVIRDC, thus MVIRDC can not
of-use of assets) execute the lease deed for 2 Floors with BHEL.

1. (A) Title deeds of Immovable Property not held in the name of BHEL (As on 31/03/2022)
Annual Review
Whether title
deed holder is a
Gross
Description of item of promoter, director
Carrying Lease/ Title deeds Property held Reason for not being held in
property (under the or relative of
value held in the name of since which date the name of the company
line item of B/S) promoter/director
(` in Crore)
or employee of
promoter/director
PPE:-
Land- Freehold 1.64 State Govt. of No 24-11-2010 Assignment deed is yet to be issued by Land
Tamil Nadu Administration Authorities
Corporate Profile
Land- Freehold 1.24 State Govt. of No Various dates Land transfer documents (Handing over
Tamil Nadu between by state govt and taken over by BHEL) are
13.01.1981 to available indicating area and Survey Numbers.
17.02.1986 Assignment deed is yet to be issued by State
Government in favour of BHEL .
Land- Freehold 0.52 State Govt of No 1974 Transfer of title deed in progress, matter taken
Telangana onwards up with state govt. through TSIIC
Land- Freehold 0.18 State Govt. of No Since 1957 Land provided through gazette of Government
Madhya Pradesh of India, title deed not available in the name of
BHEL.
Board's Report
Land- Freehold 0.11 State Govt of No 30-01-1961 Gazette Notification issued for acquisition of
Telangana Land for setting up of Heavy Electrical Plant
(Ref No:171,192,92-A,61,202 in the year 1961
&63
Land- Freehold 0.08 Bachha Lal S/O No 08-06-1983 Due to dispute in enhanced compensation
Late Ram Kishore Matter is sub judice in Hon'ble High court at
Allahabad. Appeal no. 659 of 1995

Land- Freehold 0.0022 B Saroja Devi No 01-04-1965 There is a dispute between Mrs. B Saroja Devi
and M/s BHEL in supreme court. The Supreme
Court has referred the case back to High
Court for disposal and the same is pending.
Land- Leasehold 68.38 464.8287 Acres No 20-03-2013 Full acquisition of proposed land not yet
(Right-of-use of in the name of completed.
assets) Maharashtra
Industrial
Development
Corporation
9.0688 Acres
in the name of
State Govt. of
Maharashtra
2.7676 Acres
in the name of
Private owners of
Land
Building - Freehold 0.11 JB Construction No 33 YEARS Title in respect of 4 Flats are in dispute
(Builder) between builder & Land Owner
Building - Freehold 0.05 Maharashtra No 33 YEARS 6 Flats in name of Cooperative Society. There
Cooperative is no dispute.
Notice
Society
Building - 2.56 State Govt. of No 01-02-1991 Maharashtra Govt. has not executed the lease
Leasehold (Right- Maharashtra of land with MVIRDC, thus MVIRDC can not
of-use of assets) execute the lease deed for 2 Floors with BHEL.

Particulars As at Mar 31, 2023 As at Mar 31, 2022
2. Land and buildings includes
a i)
Acres of land for which formal transfer/lease deed have not been 8421.02 8421.02
executed (in acres)
Net Block (` in Crore) 64.96 65.68
ii) Number of flats for which formal transfer/lease deed have not been 12 12
executed (in nos)
iii) Acres of land for which the cost paid is provisional; (in acres) 480.04 480.04
[registration charges and stamp duty, (net of provision)
would be] accounted for on payment.
b. Acres of land leased to Ministry of Defence,Govt. of India Departments & 20.47 29.78
others (in acres)
c. Acres of land is under adverse possession/encroachment. (in acres) 873.48 883.66
d. 1297.86 acres (PY 1297.86 acres) of land pending mutation at Haridwar plant for which legal action is in process. It includes land
measuring 934 acres (PY 934 acres) which is in BHEL's possession but has been wrongly got mutated in the name of SIDCUL
Government of Uttarakhand in the year 2004 & 2007.
e. Further at Haridwar plant, 8 Acres of land is pending transfer to IOCL /State Government under office memorandum dated
01.12.2003 of Uttarakhand Government.
(Cost of land of (b to e) mentioned above is not material)

3. i) Total Area of Land in acres 16660.72 16660.72
ii) Free hold land (Sale Deed) / Possessory Rights/license out of 3(i) in acres 15987.38 15987.38
iii) Leasehold land out of 3(i) in acres 673.34 673.34
4. The company provides 100% depreciation on an item of PPE having cost / opening net block up to ` 10000/- each. The
impact of providing 100% depreciation on an item of PPE on profit, without considering the impact of earlier years is as
under :
(` in Crore)

100% depreciation on PPE upto `10,000/- charged off 7.21 6.50
Less: Normal depreciation on above. (4.39) (3.53)
Excess amount charged to depreciation for the year 2.82 2.97
5. Properties (i)2nd Floor office in Chatterjee International Centre, Kolkata (ii) Indora Residential flats, Nagpur – Land & buildings
and (iii) Vadodra Township - Land & buildings, having a net block value of ` 1.42 Crore, have been identified for sale under
asset monetisation drive, subject to requisite approvals.

6. Summary Status of capital expenditure:
(` in Crore)
Annual Review
Addition to PPE & Intangible Assets 338.82 226.44
Increase/ (Decrease) in CWIP (77.73) 19.11
Increase/ (Decrease) in Intangible Assets under development 0.60 (7.69)
Increase/ (Decrease) in Capital Advance 0.25 (6.77)
Total 261.94 231.09
Corporate Profile
NOTE 4.1 - Detail of intangible assets
(` in Crore)
Gross block Depreciation / Amortization Net block
Opening Accumulated
Description Balance Additions/ Deductions/
Closing Accumulated Depreciation/
Depreciation Depreciation
Net Block Net Block
Balance as at Depreciation as Amortisation as at as at
as at Adjustments Adjustments Adjustments as at
31.03.2023 at 01.04.2022 for the year 31.03.2023 31.03.2022
01.04.2022 31.03.2023
Board's Report
Internally Developed
- Others 71.02 0.44 0.00 71.46 66.66 2.59 0.00 69.25 2.21 4.37
Other than
Internally
Developed
- Software 53.05 3.46 (0.25) 56.26 50.52 1.76 (0.25) 52.03 4.23 2.52

- Technical
184.85 15.31 0.00 200.16 129.62 9.74 0.00 139.36 60.80 55.23
Know-how
Total 308.92 19.21 (0.25) 327.88 246.80 14.09 (0.25) 260.64 67.24 62.12
Previous Year 290.83 18.25 (0.15) 308.92 228.67 18.27 (0.14) 246.80 62.12 62.16
Gross Block (as per earlier IGAAP) as at 31.03.2023 `598.12 Crore and as at 31.03.2022 `584.11 Crore
Notice

Note [5] - Non-current assets
Financial assets - Investment
Refer point 6 of Note [2] for accounting policy on investment in joint ventures & point 16 i (B) of Note [2] on
(` in Crore)
Financial Instruments
As at March 31, 2023 As at March 31, 2022
Particulars No. of Shares No. of Shares

Amount Amount
(Face value in `) (Face value in `)
I Quoted equity instruments - -

II Unquoted equity instruments (fully paid
up shares)
(a) Investment in joint ventures (at cost)
664040000 664040000
(i) Raichur Power Corporation Ltd. 664.04 664.04
(10) (10)
2379999
2379999
(ii) BHEL-GE Gas Turbine Services Pvt. Ltd. 2.38 2.38
(10)
(10)
50000000 50000000
(iii) NTPC-BHEL Power Projects Pvt. Ltd. 50.00 50.00
(10) (10)
Less: Provision for impairment 50.00 - 50.00 -
(iv) Powerplant Performance Improvement 1999999 1999999
2.00 2.00
Ltd. (10) (10)
Less: Provision for impairment 2.00 - 2.00 -
666.42 666.42
(b) Investment in equity instruments fully
paid up (at FVTPL)
5000000
(i) Neelachal Ispat Nigam Ltd 5.00
- - (10)
Add / (Less) : Fair Value Adjustment (5.00)

- -
728960 728960
(ii) AP Gas Power Corporation Ltd. 0.91 0.91
(10) (10)
Add / (Less) : Fair Value Adjustment 2.22 3.13 2.38 3.29
1892 1892
(iii) Engineering Projects (India) Ltd. * *
(10) (10)
Share in Co-operative Societies #
Total 669.54 669.71
*Value of less than INR 1 lakh
Aggregate amount of unquoted investment 719.33 724.33
Aggregate amount of impairment in value of
49.79 54.62
investments
# Equity shares held in various employees cooperatives societies, valuing less than `1 lakh/-

Information about joint ventures and subsidiary
Particulars Country of As at March 31, 2023 As at March 31, 2022
(A) Name of the joint ventures (JVC) incorporation Proportion (%) of ownership
Annual Review
BHEL-GE Gas Turbine Services Private Limited One share less than One share less than
(BGGTS) 50% 50%
NTPC-BHEL Power Projects Private Limited (NBPPL) 50% 50%
India
Raichur Power Corporation Limited (RPCL) 22.14% 22.14%
Power Plant Performance Improvement Limited One share less than One share less than
(PPIL) 50% 50%
(i) The provision for impairment in value of investment in NTPC-BHEL Power Projects Private Limited has been made to the extent of
Corporate Profile
` 50.00 crore (upto previous year ` 50.00 crore) based on the net financial position. The Board of Directors in its meeting
held on February 08, 2018 has accorded in-principle approval for pursuing the winding up of NBPPL. Ministry of Power
(MoP) has advised NTPC to consider buying out the stake of BHEL and decide either to continue it as an in-house EPC arm
or close it after completion of present work. This advise was noted by NBBPL Board in its meeting held on 29.08.2019.
(ii) The provision for impairment in value of investment in Powerplant Performance Improvement Limited amounting to
` 2.00 crore (previous year ` 2.00 crore) has been made since the JVC is under liquidation and the amount paid as equity
is not recoverable.
(iii) Investment in Neelachal Ispat Nigam Limited has been disposed and sale proceeds of ` 25.39 Crore received during the
Board's Report
year.
Note [6] - Financial assets - Trade receivables

Refer point 14 of Note [2] for accounting policy on impairment of financial assets (` in Crore)

Particulars

Non Current Current Non Current Current
Unsecured, considered good 3743.94 3433.95 3538.39 3340.61
Credit impaired (included in allowances for B&D debts) 11176.04 367.08 11599.09 277.54
14919.98 3801.03 15137.48 3618.15
Less: Allowances for bad and doubtful debts 11504.44 672.68 11933.64 593.40
Total Trade Recievable (Net) 3415.54 3128.35 3203.84 3024.75
Simplified approach is followed for impairment of trade receivables, the classification is done in line with Ind AS 109.
Trade receivables includes:
(a) Due from Directors - - - -
(b) Due from Officers - - - -
Notice

Non current Trade receivable ageing schedule - As at March 31, 2023 (` in Crore)
Oustanding for following periods from

due date of payment Not Yet
Unbilled
Particulars Less 6 More due for Total
1-2 2-3 Dues
than 6 months than 3 payment
Years Years
months - 1 year years
I) Undisputed Trade receivables - 50.85 100.34 116.08 78.12 1410.59 - - 1755.98
considered good
II) Undisputed Trade receivables - - - - - - - - -
credit impaired
III) Disputed Trade receivables - 1.72 0.01 3.56 21.61 1961.06 - - 1987.96
considered good
IV) Disputed Trade receivables - 95.54 91.62 283.17 340.39 10365.32 - - 11176.04
credit Impaired
Current Trade receivable ageing schedule - As at March 31, 2023 (` in Crore)

Unbilled
1-2 2-3 Dues
Years Years
considered good
credit impaired
III) Disputed Trade receivables - - - - - - - - -
considered good
credit Impaired

Unbilled
1-2 2-3 Dues
Years Years
considered good
credit impaired
III) Disputed Trade receivables - 0.89 5.28 16.95 66.50 1847.41 - - 1937.03
considered good
credit Impaired

Current Trade receivable ageing schedule - As at March 31, 2022 (₹ in Crore)

Annual Review
Unbilled
1-2 2-3 Dues
Years Years
considered good
credit impaired
III) Disputed Trade receivables - - - - - - - - -
Corporate Profile
considered good
credit Impaired
Note [7] - Financial assets - Others

Refer point 14 of Note [2] for accounting policy on impairment of financial assets (₹ in Crore)
Board's Report
Particulars
Security deposits
Deposits with SEBs, port trust & others
Unsecured, considered good 83.96 116.98* 81.80 112.86*
Credit impaired 3.59 11.32 2.87 11.69
87.55 128.30 84.67 124.55

Less: Allowances for bad & doubtful deposits 3.59 11.32 2.87 11.69
83.96 116.98 81.80 112.86
Bank deposits with more than 12 months maturity - - 4.93 -
Interest accured on banks deposits - 140.68 - 76.62
Advance to Employees - 20.61 - 22.19
Less: Allowance for bad and doubtful advances __- _0.04 __ - _0.11
20.57 22.08
Total 83.96 278.23 86.73 211.56
*includes amount deposited with courts of `88.79 crore (previous year `81.77 crore)
Includes:
Due from Directors - - - -
Dues from Officers - 0.01 - 0.01
Notice

Note [8] - Non current assets
Deferred tax assets (net of liabilities)
Refer point 13 of Note [2] for accounting policy on Income Tax (₹ in Crore)
Particulars As at March 31, As at March 31, 2022

2023
Deferred tax assets
Provisions 1654.02 1629.68
Dues allowed on payment basis 549.35 440.00
Depreciation (PP&E and Intangible assets) 12.13 46.04
On account of taxable loss 1105.79 1311.74
Others 101.33 102.62
Sub-Total 3422.62 3530.08
Less : Deferred tax liabilities - -
Deferred tax assets (net of liabilities) 3422.62 3530.08
Movement of deferred tax balances (₹ in Crore)
Particulars Balance Recognized Recognized Recognized Balance as

as at April in retained in statement in OCI at March 31,
01,2022 earnings of profit & 2023
loss a/c
Deferred tax assets

Provisions 1629.68 - 24.34 - 1654.02
Dues allowed on payment basis 440.00 - 103.54 5.81 549.35
Depreciation (PP&E and Intangible assets ) 46.04 - (33.91) - 12.13
On account of taxable loss 1311.74 - (205.95) - 1105.79
Others 102.62 - (1.29) - 101.33
Subtotal 3530.08 (113.27) 5.81 3422.62
Less: Deferred tax liabilities - - - -
Deferred tax assets (net of liabilities) 3530.08 - (113.27) 5.81 3422.62

Note [9] - Other Assets
Refer point 14 of Note [2] for accounting policy on impairment (₹ in Crore)
Annual Review
Particulars
Contract assets (including unbilled revenue)
Credit impaired 2773.38 584.87 2768.53 663.72
21701.96 11396.32 21016.77 9355.35
Sub-total (A) 18928.58 10811.45 18248.24 8691.63
Security deposits
Corporate Profile
Deposits with tax authorities and others
Unsecured, considered doubtful 31.19 71.19 30.45 89.74
134.28 449.77 110.41 533.06
Less: Provision for bad & doubtful deposits 31.19 71.19 30.45 89.74
Sub-total (B) 103.09 378.58 79.96 443.32
Loans & advances
Unsecured, considered good
Advances towards purchases (Vendors & sub - 41.14 128.69 41.54 56.42
Board's Report
Contractors)
Input Tax credit receivable - 1079.97 958.31
Claims recoverable and others 210.04 652.15 139.76 642.85
Capital advances 17.29 - 17.04 -
Unsecured, considered doubtful
Advances towards purchases (Vendors & sub - 11.92 9.65 11.50 35.69
Contractors)

Input Tax credit receivable - 6.44 5.38
Capital advances - - 4.69 -
370.68 2025.92 264.20 1810.57
Less: Provision for bad & doubtful loans & advances 102.21 165.11 65.86 152.99
Sub-total (C) 268.47 1860.81 198.34 1657.58
Total (A+B+C) 19300.14 13050.84 18526.54 10792.53

Particulars
I) Undisputed Contract Assets - considered good 15020.29 10811.45 13874.67 8691.63
II) Undisputed Contract Assets - credit impaired - - - -
III) Disputed Contract Assets - considered good 3908.29 - 4373.57 -
IV) Disputed Contract Assets - credit Impaired 2773.38 584.87 2768.53 663.72
Total 21701.96 11396.32 21016.77 9355.35
Loan & advances includes :
Notice

Note [10] - Current assets
Inventories
Refer point 7 of Note [2] for accounting policy on valuation of inventories. (₹ in Crore)
Raw material & components 2900.92 2784.94
Material-in-transit 127.98 3028.90 129.30 2914.24
Work-in-progress 3482.75 3349.47
(including items with sub-contractors)
Finished goods 422.57 518.09
Inter - division transfers in transit 89.20 511.77 89.85 607.94
Stores & spare parts
Production 149.68 151.94
Fuel stores 6.14 5.70
Miscellaneous 47.37 203.19 50.32 207.96
Other Inventory
Materials with fabricators/contractors 85.43 60.10
Loose tools 24.35 24.32
Scrap (at estimated realisable value) 163.30 273.08 143.26 227.68
7499.69 7307.29
Less: Provision for non-moving inventory 743.79 747.08
Total 6755.90 6560.21
Note :
Write down of inventories 59.72 76.77
Less : reversal thereof 63.01 49.15
Net (3.29) 27.62

Financial assets - Cash & cash equivalents
Annual Review
Refer point 17 of Note [2] for accounting policy on cash and cash equivalent. (` in Crore)

Balances with banks
EEFC a/c 226.21 28.20
Current / cash credit a/c * 1205.22 1431.43 687.82 716.02
Cheques, demand drafts on hand 128.99 13.06
Corporate Profile
Cash & stamps on hand 0.08 0.08
Remittances in transit 0.02 3.46
Total 1560.52 732.62
* Includes ` 112.23 Cr in escrow account for specified projects.
Board's Report
Financial assets - Bank balances (` in Crore)

Fixed deposits having maturity more than 3 months but not more 4852.34 6211.12
than 12 months
Fixed deposits against margin money for BG issued 213.43 202.65
Balances with banks (earmarked):

Charging station project 7.06 3.94
Unclaimed dividend a/c 1.91 1.81
CEFC A/c 6.92 -
Non-repatriable a/c 0.37 1.52
Sale proceeds of fractional shares on bonus issue 0.03 16.29 0.03 7.30
Total 5082.06 6421.07

Total Cash and Bank Balances [11 + 12] 6642.58 7153.69
Note [13] - Current assets Additional Information
Current tax assets / liabilities (net) (` in Crore)

Advance tax & TDS 285.80 180.71
Less: Provisions for taxation 59.42 61.47
Total 226.38 119.24

Notice

Note [14] - Equity
Equity share capital (` in Crore)
Particulars No.of Shares Amount No.of Shares Amount

(Face value (Face value in
in `) `)
A Equity share capital
Authorised 10000000000 2000.00 10000000000 2000.00

(2) (2)
Issued, subscribed and fully paid up 3482063355 696.41 3482063355 696.41

(2) (2)
a) The reconciliation of the number of equity shares outstanding

Balance as at the beginning of the year 3482063355 696.41 3482063355 696.41
Add/(Less): Changes during the year - - - -
Balance as at the end of the year 3482063355 696.41 3482063355 696.41
b) Details of shares held by shareholders holding more than 5% of

shares at the end of the year
President of India (Promoter) 2199650402 63.17% 2199650402 63.17%
Percentage change of Promoter holding during the year Nil Nil
Life Insurance Corporation of India 350770257 10.07% 350769757 10.07%
Face value per share in (`) 2.00 2.00
c) Terms / rights attached to the equity shares

The company has only one class of equity shares having par value of `2 per share (previous year `2 per share). Each holder
of the equity shares is entitled to one vote per share.
d) Issue of bonus share (In immediately preceding five years ended March 31, 2023)
The Company allotted bonus share on October 03, 2017 in the ratio of 1:2 i.e. one equity share for two existing fully paid-up
equity shares. Consequently, the paid-up capital was increased from `489.52 crore in FY 2016-17 to `734.28 crore in FY
2017-18 by capitalization of reserves.
e) Share buyback (In immediately preceding five years ended March 31, 2023)
The Company vide its Board approval dated October 25,2018, bought back its 18,93,36,645 fully paid-up equity shares
of the face value of `2 each representing 5.16% of the total issued and paid-up equity share capital from the eligible
equity shareholders of the Company for an amount of `16,28,29,51,470 at a price of `86 per equity share in FY 2018-19.
Consequently, the paid-up share capital was reduced from `734.28 crore in FY 2017-18 to `696.41 crore in FY 2018-19.

Note [15] - Other Equity
(` in Crore)
Annual Review
Capital reserve 35.18 35.18
Capital redemption reserve 37.87 37.87
General reserves 30476.66 30476.66
Retained earnings (3648.43) (3956.70)
OCI (Re-measurements of defined benefit plans) (335.53) (318.26)
Total 26565.75 26274.75
Corporate Profile
For additions and deduction under each of the above specific heads, SOCIE (Statement of Changes in Equity) may be referred.
Nature and purpose of reserves:

(a) Capital reserve : It represents mainly the excess of net assets taken, over the cost of consideration paid during amalgamation
of the then subsidiary company (HPVP) with the BHEL.
(b) Capital redemption reserve: The Company has recognised Capital Redemption Reserve on buy back of equity shares from
its general reserve.The amount in capital redemption reserve is equal to nominal amount of equity shares bought back.
Board's Report
(c) General reserve: This represents accumulation of profits retained by Company to meet future (known/unknown) obligations.
(d) Retained earnings: Retained earnings are profits that Company has earned till date, less transfer to general reserve, dividends
or other distributions to shareholders.
(e) Re-measurement of net defined benefit plans: Differences between the interest income on plan assets and the return
actually achieved, and any changes in the liabilities over the year due to changes in actuarial assumption or experience
adjustments within the plans, are recognised in 'Other comprehensive income' and these are subsequently not to be

reclassified to the Statement of Profit and Loss.
Note [16] - Financial liabilities - Lease Liabilities

Refer point 3 of Note [2] for accounting policy on lease. (` in Crore)

Particulars
Lease Liabilities 33.75 34.76 35.12 49.81
Total 33.75 34.76 35.12 49.81
Further disclosures available at Note [39] on lease
Notice

Note [17] - Financial liabilities -Trade payables
. (` in Crore)

Particulars
Trade payables
(i) Total outstanding dues of micro enterprises and small enterprises 128.11 1211.53 127.45 745.82
(ii) Total outstanding dues of creditors other than micro enterprises 2065.92 8558.03 2004.48 6881.11
and small enterprises
(iii) Acceptances - 126.27 - 122.66
Total 2194.03 9895.83 2131.93 7749.59
Micro and small enterprises disclosure

(i) The principal amount remaining unpaid to supplier as at the end of the accounting year * 1359.41 886.81
(ii) The interest due thereon remaining unpaid, to supplier as at the end of accounting year. - -
(iii) The amount of interest paid in terms of section 16, along with the amounts of the payment - -
made to the supplier beyond appointed day during the year.
(iv) 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 interest
specified under this Act.
(v) The amount of interest accrued during the year and remaining unpaid at the end of year. - -
(vi) 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 enterprises,
for the purpose of disallowance as a deductible expenditure.
*The amount shown here as outstanding includes amount shown in Note 17 & 18 to Micro and Small enterprises . The amount
shown here is not due for payment contractually as on March 31, 2023.
Non current Trade Payable Ageing schedule - As at March 31, 2023 (` in Crore)
Outstanding for following periods from

Unbilled
Particulars due for Total
Less than 1-2 2-3 More than Dues
payment $
1 Year Years Years 3 Years
I) MSME - - - - - 125.82 125.82
II) Others - - - - 0.36 1710.97 1711.33
III) Disputed dues - MSME - - - 2.29 - - 2.29
IV) Disputed dues - Others * 1.51 59.06 9.86 271.70 0.09 12.37 354.59

Current Trade Payable Ageing schedule - As at March 31, 2023 (` in Crore)

Unbilled
Annual Review
payment $
I) MSME 0.02 - - - 196.38 1010.60 1207.00
II) Others 581.83 0.58 0.27 2.10 1534.73 6455.49 8575.00
III) Disputed dues - MSME - - - - - 4.53 4.53
IV) Disputed dues - Others * - - - 6.98 - 102.32 109.30
Corporate Profile

Unbilled
payment $
I) MSME - - - - 0.04 125.96 126.00
Board's Report
II) Others - - - - 0.21 1637.95 1638.16
III) Disputed dues - MSME - - - 0.50 - 0.95 1.45

Unbilled
payment $
I) MSME - - - - 166.16 579.66 745.82
II) Others 2.41 - - - 1497.22 5488.49 6988.12
III) Disputed dues - MSME - - - - - - -
IV) Disputed dues - Others * 0.04 0.97 0.51 13.10 - 1.03 15.65
$ Not yet due represents contractually retained amounts subject to settlement on achievement of milestones.
* Break up of outstanding is given based on contractually due date but these will be paid only if resolution of dispute occurs in
their favour. Notice

Note [18] - Financial liabilities- Others
(` in Crore)

Particulars
Deposits from contractors & others 247.10 416.66 206.45 431.36
Liabilities :
- Employee dues - 384.33 - 214.05
- Capital Expenditure ~ 8.60 111.50 8.65 80.83
- Others* - 354.33 - 386.92
Unpaid Dividend** - 1.91 - 1.81
Interest accured on borrowings - 8.20 - 9.12
Total 255.70 1276.93 215.10 1124.09
* Other Includes Rs 0.03 Cr for sales proceeds of fractional shares arising out of bonus shares.
~ includes MSME Rs 19.77 Cr for FY 2022-23 & Rs 13.54 Cr for FY 2021-22
**No amount is due and outstanding to be transferred to Investor Education & Protection Fund at the year end.
Note [19] - Provisions

Refer point 10 & 11 of Note [2] for accounting policy on employee benefits and provisions. (` in Crore)

Particulars
Contractual obligation 2990.16 784.26 2620.03 1235.45
Provision for employee benefits* 878.37 1383.68 856.82 1060.62
Provision others 232.49 622.54 292.69 760.14
Corporate social responsibility** - 6.15 1.67 10.49
Total 4101.02 2796.63 3771.21 3066.70
*[Further disclosure available at note (25) on employee benefits].

**(Disclosure as per point vii of Note 26 (vii) on CSR expense)
Note [20] - Other liabilities

Refer point 12 of Note [2] for accounting policy on Government grants (` in Crore)

Particulars
"Contract liabilities (Advances received from customers incl.excess 2585.67 3049.34 2193.43 3854.33
of billing over revenue)"
Liabilities towards statutory dues - 908.32 - 775.55
Deferred income- Govt. grant # 20.14 4.63 19.22 6.08
Total 2605.81 3962.29 2212.65 4635.96
#Govt. grant is received for setting up of solar PV plant and manufacturing of modules , CEFC (Common Engineering Facility
Centre) scheme

Note [21] - Current Financial liabilities - Borrowings
(` in Crore)
Annual Review
Secured
Loans from banks (secured by fixed deposits) 1115.00 -
Loans from banks 4270.00 4745.00
(secured by hypothecation of raw materials, components, work-in-progress, finished goods &
stores)
Sub-total (A) 5385.00 4745.00

Unsecured
Corporate Profile
Sub-total (B) - -
Total borrowings (A+B) 5385.00 4745.00
(i) Details of sanctioned limits
Utilization
Sanctioned
Description As at March 31, 2023 As at March 31, 2022
Limit
Value (`/ Cr) % Utilisation Value (`/ Cr) % Utilisation
Board's Report
Non Fund Based Limits 54000 33602 62.23% 33936 62.84%
Bank Guarantees# 51000 30853 60.50% 31369 61.51%
Letter of Credit (inc. Buyer's Credit) 3000 2749 91.63% 2567 85.57%
Fund Based Limits 6000 4270 71.17% 4745 79.08%

WCDL 4270 4745

PCFC NIL NIL
Commercial Paper 5000 NIL NIL
"Total Consortium limit (fund based + non fund based) of ` 60000 Cr secured by first charge by way of hypothecation of
raw materials, components, work in progress, finished goods, stores, trade receivables and other current assets both present
and future.
Company has been in discussion with Consortium Banks on reallocation of Banks limit (Fund Base `9000 Crore and Non
Fund `51000 crore) keeping overall limits unchanged at ` 60000 crore."
Commercial Papers are in the nature of unsecured short term borrowings.
# Outstanding Bank Guarantees include ` 4 Crore (P.Y. ` 439 Cr.) on a/c of BGs already replaced but pending vacation as
on March 31, 2023. Excluding this, the outstanding BGs as on 31.03.2023 is ` 30849 Cr. (Previous Year 30930 Cr.)
(ii) Loan from Banks ` 4270 Cr in FY 2022-23 represents WCDL (Working Capital Demand Loan) & ` 1115 Cr Loans against Fixed
Deposits. For Previous Year, ` 4745 Cr Loans represents WCDL.
(iii) The company has not been declared wilful defaulter by any Bank / Financial Institution.
(iv) The quarterly returns or statements of current assets filed by the Company with Banks or Financial Institutions are in
Notice
agreement with Books of accounts.

(v) Corporate Guarantees given for own obligations outstanding as on 31.03.2023 is ` 403 crore (previous year ` 1165 crore).

(vi) Change in Borrowings arising from Financing activities (` in Crore)

Opening Balance (excl. cash credit) 4745.00 4833.78
Cash Flow during the year 640.00 (88.78)
Closing Balance (excl. cash credit) 5385.00 4745.00
For changes in lease liability arising from financing activities, refer note no [b] of Note 36
Note [22]
Revenue from operations
Refer point 8 of Note [2] for accounting policy on revenue recognition. (` in Crore)

March 31, 2023 March 31, 2022
Revenue from contracts with customers
Revenue from Construction and Project related activity 16083.09 14107.10
Sale of Product & Other services 6053.21 6046.28
Total (A) 22136.30 20153.38
Other operational income
Freight & insurance 187.84 129.35
Scrap sales 299.90 273.63
Recoveries from suppliers 131.33 113.98
Liabilities written back 406.22 239.95
Insurance claims 47.94 76.51
Export incentives 19.63 50.50
Others 135.78 173.79
Total (B) 1228.64 1057.71
Revenue from operations (A + B) 23364.94 21211.09
Revenue from Operations excludes Goods and service tax : 3566.00 2970.00

Note [23]
Other income
Annual Review
March 31, 2023 March 31, 2022
Interest income *
From banks 302.35 246.75
Others 118.77 56.04
Sub-total (A) 421.12 302.79
Corporate Profile
Dividend income
Dividend on investment in joint ventures (long term trade) 26.18 30.35
Sub-total (B) 26.18 30.35
Other income
Profit on sale of Investment - NINL 25.42 -
Government grants on Solar PV Plant for captive use / CEFC 8.90 6.20
Profit from sale of PPE & capital stores (Net) 7.76 6.90
Board's Report
Others 25.43 21.57
Sub-total (C) 67.51 34.67
Total other income 514.81 367.81
*Includes TDS 13.44 18.92
Note [24]

Changes in inventories of finished goods, work in progress and Scrap (Accretion) / Decretion
(` in Crore)
For the year ended For the year ended

Particulars
March 31, 2023 March 31, 2022
Work -in -progress
Closing balance 3482.75 3349.47
Opening balance 3349.47 (133.28) 3786.38 436.91
Finished goods
Opening balance 518.09 95.52 628.72 110.63
Scrap
Opening balance 143.26 (20.04) 147.46 4.20
Inter-division transfer in transit 0.65 (26.10)
(Accretion) / Decretion (57.15) 525.64
Notice

Note [25]
Employee benefits expense
Refer point 10 of Note [2] for accounting policy on employee benefits. (` in Crore)

March 31, 2023 March 31, 2022
Salaries, wages, bonus, allowances & other benefits 4859.69 4710.99
Contribution to provident and other funds 473.56 460.01
Staff welfare expenses 244.69 239.89
Contribution to gratuity fund 114.14 95.78
Group insurance 8.55 10.17
Total 5700.63 5516.84
Note [26]
Other Expenses
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Power & fuel 487.67 415.08
Expenditure on other sub contracts 243.91 243.72
Carriage outward 249.55 241.23
Payment to security agencies 153.97 148.93
Repairs & maintenance:
Buildings 33.00 27.32
Plant & machinery 32.41 26.44
Others 77.55 142.96 74.05 127.81
Insurance 108.03 95.88
Travelling & conveyance 110.59 84.89
Bank charges 90.76 92.17
R&D expense 12.81 12.10
Hire charges 51.01 48.22
Expenditure on collaborations & royalty 54.61 45.21
Rates & taxes 36.62 23.04
Office expense 29.32 27.32
Expenditure on skill development 11.47 12.83
Legal, audit & certification expense 47.67 32.45
EDP, software & lease line expense 17.61 17.40
Water charges 22.83 20.50
Rent non-residential 9.85 12.77
Expenditure in connection with exports 8.64 8.01

Note [26]
Other Expenses (Contd.)
(` in Crore)
Annual Review
Particulars
March 31, 2023 March 31, 2022
Entertainment & courtesy expenses 3.14 2.73
Environmental protection 5.14 4.59
Seminar, development and training expense 2.90 1.28
Unrealised loss in investment of equity share 0.16 0.29
Corporate Profile
Publicity & public relation expense 3.62 1.94
Miscellaneous expense 49.29 49.97
Exchange variation [Net (gain) / loss] (459.93) (81.62)
Provision and Write off (Details at point no vi below) (847.17) (1526.25)
Total 647.03 162.49
(` in Crore)
Board's Report
March 31, 2023 March 31, 2022
Further Details
(i) Legal, audit & certification expense includes :
Payment to Statutory Auditors:
Audit fees 1.01 0.97
Tax audit 0.22 0.21

Quarterly limited review & others 0.60 0.60
Audit expense 0.12 0.08
Payment to Cost Auditors fees: 0.16 0.15
(ii) Director's fees 0.26 0.25
(iii) Expenditure on departmental repair & maintenance:
Others 33.34 33.09
(iv) Expenditure on research & development 128.49 122.83
(v) Expenditure on foreign travel
No. of tours 302 127
Expenditure 5.57 1.92
Notice

(vi) Provisions and write off
(Refer Point 11 & 14 of Note 2 on provision and impairment of assets) (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Doubtful debts, liquidated damages and loans, advances &
deposits
Created during the year 885.10 729.55
Less: withdrawal during the year 1112.29 (227.19) 2209.16 (1479.61)
Contractual obligations
Other Provisions
Investment written off 5.36
Bad debts written off 30.62 98.34
Liquidated damages & contractual charges charged off 113.55 233.59
Losses written off 3.73 12.68
Total Provisions and Write off (847.17) (1526.25)
(vii) Corporate social responsibility

As per section 135 of the Companies Act, 2013 read with guidelines issued by DPE, the Company is required to spend, in every
financial year, at least two percent of the average net profits of the Company made during the three immediately preceding
financial years in accordance with its CSR policy. The details of CSR expense for the year are as under: (` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
A. Amount required to be spent during the year - -
B. Amount available from previous year 12.16 21.27
C. Total (A+B) 12.16 21.27
D. Amount spent during the year on-
'(i) Construction/ acquisition of any asset - -
'(ii) On purposes other than (i) above 6.01 9.11
Total 6.01 9.11
Amount carried forward: 6.15 12.16
Current 6.15 10.49
Non-current - 1.67

(` in Crore)

March 31, 2023 March 31, 2022
Annual Review
Particulars In Cash Yet to be In Cash Yet to be
paid in paid in
Cash Cash
(i) Construction / acquisition of any asset - - - -
(ii) On purposes other than (i) above 4.69 1.32 6.14 2.97
Total 4.69 1.32 6.14 2.97
Type of CSR activities Health, Cleanliness, Education, Responsibility & Inclusivity,
Disaster Relief , Water, Biodiversity, Carbon and Waste
Corporate Profile
Management
Unspent amount on ongoing projects ` 21.27 Cr. was transferred in 2020-21 year to a separate bank account as per Companies
(CSR policy) Amendment Rules.2021 and being used for the purpose.
Note [27]
Finance costs
Board's Report
Refer point 5 & 11 of Note [2] for accounting policy on borrowing costs and provisions. (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Discount on commercial papers 51.17 137.41
Unwinding of provisions 160.50 156.01
Interest cost:

Banks / Financial Institutions 296.55 46.65
Foreign Financial Instituitions 1.45 0.74
On lease obligation 7.03 8.50
Others 4.24 309.27 4.01 59.90
Other expenses on issuance of Commercial paper 0.49 1.40
Sub-total 521.43 354.72
Less: Borrowing cost capitalised - -
Total 521.43 354.72
Notice

Note [28]
Tax expenses
Refer point 13 of Note [2] for accounting policy on income taxes. (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Current tax
For current year 47.88 48.86
For earlier years (159.10) (111.22) (125.99) (77.13)
Deferred tax
For earlier years (0.75) 113.27 (5.12) 103.84
Total 2.05 26.71
Note [29]
Other comprehensive income / expenditure (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Income / (expenditure)
Re measurement of defined employee benefits (23.08) 102.72
Less: Income tax related to above items * (5.81) 25.85
Total (17.27) 76.87
* Includes
Current tax - -
Deferred tax (5.81) 25.85
Reconciliation of Income tax expense and accounting profit (TCI) multiplied by income tax rate (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Total Comprehensive Income / Loss (TCI) before tax (A) 426.52 539.67
Statutory income tax rate (B) 25.168% 25.168%
Tax expense C = (AXB) 107.35 135.82
Difference due to: (D)
Expenses not deductible for tax purposes 48.74 48.61
Difference in tax due to Income chargeable to tax at special rate - (0.76)
Change in tax expense - earlier years (159.85) (131.11)
Subtotal (D) (111.11) (83.26)
Net Tax Expense E = (C+D) (3.76) 52.56

Note [30]
Earnings per share
(` in Crore)
Annual Review
Particulars
March 31, 2023 March 31, 2022
Profit / (loss) attributable to equity shareholders 447.55 410.24
Weighted average number of equity shares 348.21 348.21
Basic and diluted earnings per share of INR 2 each 1.29 1.18
Basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders of the Company
Corporate Profile
by the weightage average number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the net profit attributable to the equity shareholders of the Company by the weightage average number of equity shares
considered for deriving basic earnings per equity share and also the weightage average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.
Note [31]
Dividend per share
Board's Report
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Proposed dividend on equity shares not recognised as liability
Proposed final dividend of ₹ 0.40 per share for FY 2022-23 139.28 139.28
(FY 2021-22 ₹ 0.40 per share).

Proposed dividend on equity shares is subject to the approval of the shareholders of the Company at the Annual General Meeting
and not recognised as liability as at the Balance Sheet date.
Note [32] Contingent liabilities and commitments

(` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
A. Contingent liabilities
Claims against the company not acknowledged as debt :
(a) Sales tax matters 1227.09 1279.61 Additional Information
(b) Service tax matters 606.56 920.46
(c) Court & arbitration matters 711.81 592.77
(d) Excise duty matters 166.39 162.18
(e) Customs duty and others 934.51 880.06
(f) Goods &Service Tax 4.14 -
(g) Other matters ( incl. disputed staff cases) 59.69 48.37
Notice
(h) Claim towards Liquidated damages (LD) 3596.61 2872.25

Total 7306.80 6755.70

(i) In view of various court cases, litigations and claims disputed by the Company, the outflow of resources is not ascertainable
at this stage. Generally,contingent Liability in respect of court & arbitration cases are shown on award/court judgement and
also reviewed on a case to case basis for its reporting in contingent liability.
(ii) It is not practicable for the Company to estimate the timing of actual cash outflows in respect of items (a) to (g) , if any, due
to pending resolution of the respective proceedings. However, the chances of cash outflow are contingent.
(iii) Liquidated damages represents likely claims or amount withheld by customer on account of delay in execution of projects
which will be settled after commissioning and trial operation of project based on delay analysis and is being disclosed in line
with Ind AS -37.
(iv) Movement in contingent liabilities (` in Crore)

Balance at the beginning of the year 6755.70 6045.49
Less: Reduction out of opening balance 727.70 129.84
Add: Additions (net) during the year 1278.81 840.05
Balance at the end of the year 7306.80 6755.70
(` in Crore)

B. Commitments
(a) Estimated amount of contracts, net of advances, remaining to be executed 282.05 209.20
on capital account and not provided for.
-- (The above includes related to acquisition of intangible assets) 32.71 7.56
(b) Investment in the Joint Venture entity (NBPPL) for which the company has 50.00 50.00
restrictions for their disposal for five years from the date of incorporation
/commercial operation of the project/first unit of the project/completion
of first EPC contract, as the case may be. This investment has been fully
provided for.
(c) In view of the nature of business, being long term construction contracts there may be other commitments for purchase of
material etc., which has been considered as normal business process.
Note [33]
Current Financial liabilities includes a sum of ` Nil (previous year ` 100.51 Crore) towards guarantee fee demanded by the
Government of India in respect of foreign currency loans taken by the Company at the instance of the Government upto 1990-
91. Since there was no stipulation for payment of such guarantee fee at the time the loans (guaranteed by Government) were
taken by the company, the same is reversed after review.
Note [34]
The Company had taken over Amorphous Silicon Solar Cell Plant (ASSCP), Gurgaon on April 1, 1999 from Ministry of New and
Renewable Energy (MNRE) on lease for a period of 30 years. The formal lease agreement with the Ministry of New and Renewable
Energy (MNRE) is yet to be finalised.
Note [35]
Balance shown under Trade receivables, Trade payables, contractors’ advances, deposits and stock / materials lying with sub-
contractors/ fabricators are subject to confirmation, reconciliation & consequential adjustment, if any. The Company is in the
business of long term construction contracts, bills are raised on the customers as per contract in line with billing schedule
approved by the customer and the reconciliation is carried out on ongoing basis & provisions made, wherever considered
necessary. Final reconciliation with customer is done on completion of project (Trial Operation and PG Test completed). Trade
Receivable of Completed Projects stand at `7963 Cr (Previous Year 7593 Cr.). Out of completed contracts, the projects reconciled
with customers have outstanding trade receivables of `6185 Cr. (previous year `6376 crore).

Note [ 36 ]
Disclosure on Leases - Ind AS 116
Annual Review
Lease Commitments - Company as Lessee
The company's significant leasing agreements are in respect of land, building and EDP equipments. The company has entered
into a rate contract for lease arrangement for computer items, printers, video conferecing equipments and peripherals. Assets
taken on lease are capitalised and disclosed separately as Right-of-use assets in the property, plant and equipment. The lease
rentals are allocated between interest, maintainence and principal value. The interest and maintenance charges are charged to
Statement of Profit and Loss and principal amount is adjusted to lease obligations.
The company has applied the following available practical expedients :
Corporate Profile
(i) The short-term leases exemptions to leases with lease term less than 12 months
(ii) The low value lease exemption to leases where underlying asset is of low value (assets of less than ` 50000 in value).
a) Age-wise analysis of Lease Liabilities are as follows
(` in Crore)
Future minimum lease Interest Present value [PV] of
payments minimum lease payments
Particulars As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
Board's Report
2023 2022 2023 2022 2023 2022
Not later than 1 year # 36.62 54.51 3.52 6.60 33.10 47.91
Later than 1 year and not 34.60 40.52 2.78 5.40 31.82 35.12
later than 5 years
Later than 5 years 2.14 - 0.21 - 1.93 -
# The amount of future minimim lease payments in respect of leases where remaining lease term as at the end of March 31,2023

is less than 12 months is ` 16.70 cr (Previous year ` 7.56 cr).
b) Movement in lease liabilities during the FY year 2022-2023
(` in Crore)
As at
Particulars
March 31, 2023 March 31, 2022
Lease Liabilities As at April 1* 84.93 101.61
Add: Additions 33.58 33.18
Add: Accretion of interest 7.03 8.50
Less : Payments/Adjustment 57.04 58.36
Lease Liabilities as at March 31* 68.50 84.93
* includes interest accrued of ` 1.66 crore ( PY ` 1.90 crore) & ` 1.90 crore (PY ` 2.96 crore) as at March 31,2023 & March 31,2022 respectively
Notice

c) Amounts recognised in profit or loss:
(` in Crore)
For the year ended

Particulars
March 31, 2023 March 31, 2022
Expense relating to Short-term leases 4.91 2.27
Expense relating to low value assets leases 1.26 1.23
Depreciation charge of right-of-use assets 33.00 42.35
Interest expense (included in finance cost) 7.03 8.50
d) The company has various lease contracts that have not yet commenced . The future lease payments for these non-
cancellable lease contracts are as follows:
(` in Crore)
As at
Particulars
March 31, 2023 March 31, 2022
Not later than 1 year 0.04 -
Later than 1 year and not later than 5 years 0.06 -
Later than 5 years - -
Note [37] - Disclosure on 'Employee benefits' - Ind AS 19

A. The Company has following Schemes in the nature of Defined Benefits plans :
i) Gratuity Scheme
ii) Post Retirement Medical Scheme
iii) Provident Fund Scheme
iv) Travel claim on Retirement
(i) Gratuity (Funded Plan)

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more
is entitled to gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of
service subject to a maximum limit of `20 Lakhs.The gratuity liability arises on account of future payments, which are required
to be made in the event of retirement, death in service or withdrawal. The liability has been assessed using projected unit credit
actuarial method.

Movement in net defined benefit (asset)/liability on Gratuity plan (` in Crore)
Defined benefit Fair value of plan assets Net defined benefit (asset)
obligation liability
Particulars
Annual Review
As at March, 31
2023 2022 2023 2022 2023 2022
Opening balance 1933.60 2005.26 1581.44 1697.44 352.16 307.82
Included in Profit for the Year :
Current Service Cost 89.49 95.78 - - 89.49 95.78
Past Service Cost - - - - - -
Corporate Profile
Interest cost /(income) 135.35 135.35 110.70 135.35 24.65 -
Total amount recognised in 224.84 231.13 110.70 135.35 114.14 95.78

Profit for the Year
Included in Other Comprehensive

income ( OCI) :
Remeasurement loss (gain):
Actuarial loss (gain) arising
Board's Report
from:
Change in Demographic (19.36) - - - (19.36) -

Assumption
Change in Financial (74.88) (47.57) - - (74.88) (47.57)

Assumption
Experience Adjustment 23.95 (19.22) (0.73) (15.35) 24.68 (3.87)

Total amount recognised in (70.29) (66.79) (0.73) (15.35) (69.56) (51.44)
other comprehensive income
Others
Contributions paid by the - - - - - -

Employer
Benefits paid (237.93) (236.00) (237.93) (236.00) - -
Unpaid Benefits paid
Closing balance 1850.22 1933.60 1453.48 1581.44 396.74 352.16
Details of Plan assets

Funds managed by Insurer* 79.03% 76.96%
High quality Corporate bonds (quoted) 16.52% 19.55%
State Government securities (quoted) 3.00% 2.80%
Bank Balance 1.45% 0.69%
Notice
Total 100.00% 100.00%
*Insurer is Life Insurance Corporation of India

Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date.

Economic assumptions:
Discount rate 7.40% 7.00%
Salary escalation rate 6.50% P.A. for 1st 4 6.50% P.A. for 1st 4
yrs. & then 6% P.A. yrs. & then 6% P.A.
thereafter thereafter
Demographic assumptions:
Retirement age 60 60
Mortality table 100% of IALM (2012-14) 100% of IALM (2012-14)
Withdrawal rate % (All ages)
Upto 30 Years 3% 3%
From 31 to 44 years 1% 2%
Above 44 years 1% 1%
Sensitivity analysis
The sensitivity of the defined benefit obligation to changes in the significant principal assumptions is:
(` in Crore)
Gratuity
Increase Decrease Increase Decrease
Change in Discount rate (0.50% movement) (91.64) 99.80 (91.26) 99.51
Change in Salary escalation rate (0.50% movement) 36.56 (42.09) 43.70 (47.40)
Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these are not calculated.
Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not
applicable.
The sensitivity analysis above has been determined based on a method that extrapolates the impact on defined benefit obligation
as a result of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be
representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur
in isolation of one another as some of the assumptions may be correlated.
Expected maturity analysis of the gratuity plan in future years (` in Crore)
Gratuity
Particulars
Less than 1 year 160.65 213.13
Between 1-2 years 135.51 149.43
Between 2-3 years 113.15 134.26
Between 3-4 years 100.52 112.14
Between 4-5 years 88.94 98.80
Over 6 years 1170.88 1138.10
Total 1850.22 1933.60
Expected contributions to gratuity plans for the year ending 31 March 2024 are ` 102.96 crore
The weighted average duration of the gratuity defined benefit plan obligation at the end of the reporting period is 14.60 years (31
March 2022: 14.81 years. )

Risk Exposures
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such, company is exposed to
various risks such as increase in salary, investment risk, discount rate, mortality, disability and withdrawals.
Annual Review
(ii) Post Retirement Medical Benefits (Funded Plan)
The Company has Post-Retirement Medical benefit (PRMB), under which the retired employees and their spouses are provided
medical facilities in the Company hospitals/empanelled hospitals subject to company medical rules.They can also avail treatment
as out-patient subject to a ceiling fixed by the Company. The liability for the same is recognised annually on the basis of actuarial
valuation.
Movement in net defined benefit (asset)/liability on Post retirement Medical Benefit Plan
Corporate Profile
(` in Crore)
Defined benefit Net defined benefit (asset)
Fair value of plan assets
Particulars As at March, 31
2023 2022 2023 2022 2023 2022
Opening balance 2210.85 2255.85 1919.34 1948.34 291.51 307.51

Board's Report
Current service cost 40.29 39.26 - - 40.29 39.26
Past service Cost - - - - - -
Interest cost / (income) 154.76 152.27 134.36 152.27 20.40 -
Total amount recognised in Profit 195.05 191.53 134.36 152.27 60.69 39.26
for the Year

Income (OCI):
Actuarial loss (gain) arising from:
Demographic assumptions 18.72 - - - 18.72 -
Financial assumptions (96.85) (54.57) - - (96.85) (54.57)
Experience adjustment 109.13 (16.96) (34.48) (16.27) 143.61 (0.69)
Total amount recognised in other 31.00 (71.53) (34.48) (16.27) 65.48 (55.26)
comprehensive income
Others
Contributions paid by the
employer
Benefits paid (187.30) (165.00) (187.30) (165.00) - -
Closing balance 2249.60 2210.85 1831.92 1919.34 417.68 291.51
The plan assets of the Company are managed by Life Insurance Corporation of India through a trust managed by the Company
in terms of an insurance policy taken to fund obligations of the Company
Notice


Mortality table 100% of IALM (2012-14) 100% of IALM (2012-
14)
Withdrawal rate (All ages)
Upto 30 Years 3% 3%
(` in Crore)
Post Retirement Medical Benefit

Change in cost (0.50% movement) 106.07 (104.21) 101.79 (100.97)
Sensitivity due to mortality and withdrawls are not material and hence impact of change not calculated.
Expected maturity analysis of the Post retirement medical Benefit plan in future years (` in Crore)

Particulars
Between 1-2 years 198.87 140.73
Between 2-3 years 203.84 149.11
Between 3-4 years 210.98 158.65
Between 4-5 years 220.47 169.44
Between 5-6 years 228.18 181.98
Over 6 years 1003.97 1277.55
Total 2249.60 2210.85
Expected contributions to Post retirement medical benefit plan for the year ending 31 March 2024 are ` 49.81 crore.

The weighted average duration of the post retirement medical benefit plan obligation at the end of the reporting period is 12.34
years (31 March 2022: 12.78 years )
Risk Exposure
Annual Review
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to
various risks such as increase in medical cost, investment risk, discount rate, mortality, disability and withdrawals.
(iii) Provident Fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in
permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI.
Accordingly, the Company has obtained report of the actuary. Wherever as per the actuarial valuation certificate liability for likely
interest shortfall arises, the same has been provided in the accounts.
Corporate Profile
Details of interest shortfall in PF Trust (` in Crore)
For the year ended

Particulars
2022-23 2021-22
Excess / (Shortfall) in PF interest liability based on actuarial valuation for the year (14.90) 1.26
Accumulated provision for shortfall in PF interest liability based on actuarial valuation 28.10 13.20
Remeasurement gain/(loss) recognised through other comprehensive income statement (24.20) (1.39)
Board's Report
Interest shortfall / (surplus) accounted through Statement of Profit & Loss (9.30) (2.65)
The Company has PF trusts located at various places covering the employees of the Company and managed separately,the
details of plan assets and obligations are as follows :
(` in Crore)
Defined benefit Fair value of plan Surplus / (Shortfall)

obligation assets
Location As at
March March March March March March
31, 2023 31, 2022 31, 2023 31, 2022 31, 2023 31, 2022
BHEL EPF Trust,Ranipur,Hardwar 1764.84 1664.32 1776.01 1680.03 11.17 15.71
BHEL Employee Provident Fund-Trichy 916.65 935.88 906.77 929.35 (9.88) (6.53)
BHEL Employee Provident Fund Bhopal 1493.84 1394.81 1487.41 1395.61 (6.43) 0.80
BHEL New Delhi Employees Provident Fund Trust 1433.99 1375.80 1433.50 1386.09 (0.49) 10.29
BHEL Employee Provident Fund-Hyderabad 843.58 823.06 871.94 853.42 28.36 30.36
BHEL PPD EPF Trust,Chennai 907.95 854.23 896.65 847.56 (11.30) (6.67)
BHEL Employee Provident Fund-Bengaluru 614.87 620.46 626.89 627.07 12.02 6.61
BHEL (BAP Unit) EPF Trust,Ranipet 332.24 357.05 332.46 359.84 0.22 2.79
BHEL Employee Provident Fund Trust Jhansi 476.99 455.36 491.52 468.66 14.53 13.30
Bharat Heavy Plates & Vesseles Limited Employee 148.74 145.91 186.84 179.46 38.10 33.55
Contributory Provident Fund-Vizag
Total 8933.69 8626.88 9009.99 8727.09 76.30 100.21
Notice

Movement in net defined benefit (asset)/liability on Provident Fund (` in Crore)
BHEL Employees Provident Fund Trust ( Consolidated)

Defined benefit obligation Fair value of plan assets
Particulars
As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022
Opening balance 8626.88 8395.04 8727.09 8465.86
Current service cost 353.89 337.15 - -
Interest cost / (income) 683.04 657.45 683.04 657.45
Total amount recognised in Profit for the Year 1,036.93 994.60 683.04 657.45
Included in Other Comprehensive Income (OCI):
Demographic assumptions
Financial assumptions (1.22) (1.65) -
Experience adjustment (4.04) 3.54 (29.15) 31.28
Total amount recognised in other comprehensive (5.26) 1.89 (29.15) 31.28
income
Others
Contributions paid by the employer - 353.89 337.15
Employee Contribution 717.79 725.84 717.79 725.84
Benefits paid (1862.90) (1904.95) (1862.90) (1904.95)
Settlements/Transfer-in 420.24 414.46 420.24 414.46
Closing balance 8933.68 8626.88 9009.99 8727.09
Note: Intrest shortfall in respect of PF trusts having deficit have been accounted during the year through statement of profit and
loss account and other comprehensive income statement.
In addition to the above, diminution in PF Trust Investment is also cumulatiively provided totalling to ` 68.47 Cr. based on the
best possible assessment of recovery.
Details of Plan assets (` in Crore)

Govt. of India securities [Quoted] 905.49 1026.09
State Government securities [Quoted] 4451.33 4061.08
Corporate bonds [Quoted] 3017.93 3062.28
Special Deposit [Unquoted] 364.71 384.27
Liquid Fund [Quoted] 17.19 14.25
Short term deposit [Unquoted] 33.46 13.07
Mutual Fund & Equity shares[Quoted] 219.88 166.05
Total 9009.99 8727.09

Annual Review
Expected statutory interest rate on the ledger balance 8.15% 8.10%
Expected short fall in interest earnings on the fund 0.05% 0.05%
Corporate Profile
Upto 30 Years 3.00% 3.00%
From 31 to 44 years 1.00% 2.00%
Above 44 years 1.00% 1.00%
(` in Crore)
Board's Report
BHEL Employees Provident Fund Trust

Expected maturity analysis in future years
(` in Crore)
Provident Fund
Particulars
Within the next 12 months 860.93 916.15
Between 2-5 years 1706.54 1681.13
Between 5-10 years 1396.90 2150.37
Beyond 10 years 4969.31 3879.23
Total 8933.68 8626.88
Risk Exposure
various risks such as increase in investment risk, discount rate, mortality, disability and withdrawals.
Notice

(iv) Travel claim on retirement- (Settlement Allowance - Unfunded Plan)
The settlement allowance is the expenditure reimbursed to an employee towards travel and shifting of baggage for proceeding
to home town or any place in India where he or she intends to settle after retirement or death in service for self (including
members of his/her family).
Movement in Settlement Allowance liability

(` in Crore)
Settlement Allowance liability

Particulars
Opening balance 11.63 10.30
Current service cost 0.81 0.69
Interest cost / income 0.81 0.69
Included in Profit for the Year : 1.62 1.38
Actuarial loss / (gain) 2.97 2.60
Total amount recognised in TCI for the Year 4.59 3.98
Others
Contributions paid by the employer - -
Benefits paid (2.79) (2.65)
Settlement Allowance
Particulars
Salary escalation rate 6.50% P.A. for 1st 4 yrs. & then 6.50% P.A. for 1st 4 yrs. & then
6% P.A. thereafter 6% P.A. thereafter
Withdrawal rates (All ages)
Upto 30 Years 3% 3%
B. Long term Leave Liability (Encashable Leave -EL /Half Pay Leave-HPL) - (Unfunded Plan)
The company provides for earned leave benefit and half pay leave to the employees of the company which accrue half yearly
at 15 days (maximum) and 10 days respectively. The earned leave is encashable while in service subject to fulfilment of certain
conditions. On retirement/superannuation, earned leave & half pay leave put together upto a maximum of 300 days is encashable
subject to company policies & leave encashment rules.The leave liability has been treated as other long term benefits and has
been assessed using projected unit credit actuarial method.

Movement in long term leave liability
(` in Crore)
Long Term Leave Liability
Annual Review
Particulars
Interest cost (income) 72.15 83.82
Actuarial loss (gain) (61.60) (181.51)
Total amount recognised in Profit for the Year 141.46 44.31
Corporate Profile
Benefits paid 135.00 255.33

Particulars
Board's Report

Upto 30 Years 3% 3%
C. Pension Fund
The Company has recognised ` 247 cr [PY ` 254 cr] as contribution in respect of pension scheme [ defined contribution plan]
for the FY 2022-23
Notice

Note [38] - Disclosure as per Ind AS 24 - Related Parties
A. List of related parties
(i) BHEL-GE Gas Turbine Services Pvt. Ltd. (BGGTS)
NTPC-BHEL Power Projects Pvt. Ltd. (NBPPL)
Joint venture companies
Raichur Power Corporation Ltd. (RPCL)
Powerplant Performance Improvement Ltd. (PPIL)
Provident fund trusts
Gratuity trust
Post employment benefit plans
PRMB Trust
Pension Trust
Others Central Government controlled entities
The company is a central Public Sector undertaking under the administrative control of Ministry of Heavy Industries and
majority of its stake is held by Government of India. The significant transactions are with other PSUs, State owned utilities,
Railways etc. which are also controlled by Govt. of India directly or indirectly. The transactions with such entities are normal,
based on market driven rates at arms length price.
ii) Other related parties:
a. Key Management Personnel [KMP]
Particulars Designation Position Held [w.e.f /upto]

Functional Directors
Shri [Dr.] Nalin Shinghal Chairman & Managing Director
Shri Subodh Gupta Director (Finance) & CFO
Ms. Renuka Gera Director ( IS & P)
Shri Upinder Singh Matharu Director (Power)
Shri. Jai Prakash Srivastava Director (E, R&D) w.e.f. August 12, 2022
Company Secretary
Shri Rajeev Kalra Company Secretary
(` in Crore)
For the year ended

Particulars
March 31,2023 March 31,2022
Compensation to Key management personnel
- Short term employee benefits 2.85 3.15
- Post employment benefits 0.50 0.36
- Other long term benefits - -
- Termination benefits - -
- Share based payment - -
Total 3.35 3.51

b. Government Director/Independent Director
Name Government/Independent Held [w.e.f /upto]

Shri Shashank Priya Government Director upto 14.02.2023
Annual Review
Shri Vijay Mittal Government Director
Smt. Arti Bhatnagar Government Director w.e.f. 14.02.2023
Shri Raj Kamal Bindal Independent Director upto 27.01.2023
Shri Manish Kapoor Independent Director upto 27.01.2023
Shri (Dr.) Raj K. Agarwal Independent Director upto 12.09.2022
Shri (Dr.) K. Sivaprasad Independent Director
Smt.(Dr.) Lekhasri Samantsinghar Independent Director
Corporate Profile
Shri Aditya Prasad Sahu Independent Director upto 30.05.2022
(` in Crore)
For the year ended

Particulars
March 31, 2023 March 31, 2022
Sitting Fees -- Independent Directors 0.26 0.25
B Transactions with Post Employment Benefit Plans managed through separate trust (` in Crore)
Board's Report
Contribution by employer
Name of the Trust Post Employment benefit plan For the year ended March 31
2023 2022
PRMB Trust Post Retirement medical - -
scheme
Gratuity Trust Gratuity - -

Employees Superannuation Fund Pension Fund 246.95 115.00
BHEL EPF Trust,Ranipur,Hardwar Provident Fund 57.81 55.13
BHEL Employee Provident Fund-Trichy Provident Fund 56.00 53.43
BHEL Employee Provident Fund Bhopal Provident Fund 56.25 53.03
BHEL New Delhi Employees Provident Fund Provident Fund 44.01 41.46
Trust
BHEL Employee Provident Fund-Hyderabad Provident Fund 42.45 40.56
BHEL PPD EPF Trust,Chennai Provident Fund 30.67 28.21
BHEL Employee Provident Fund-Bengaluru Provident Fund 28.60 27.75
BHEL (BAP Unit) EPF Trust,Ranipet Provident Fund 17.83 18.58
BHEL Employee Provident Fund Trust Jhansi Provident Fund 13.77 13.19
Bharat Heavy Plates & Vesseles Limited Employee Provident Fund 6.50 5.81
Notice

C) Details of Transactions with Joint Ventures and Balances
(` in Crore)
For the year ended

Particulars
March 31,2023 March 31,2022
Sales of Goods & Services
BGGTS 239.24 281.48
RPCL 9.42 3.27
NBPPL 2.21 3.83
Dividend income
BGGTS 26.18 30.35
Royalty income
BGGTS 1.85 1.80
Purchase of Goods and Services
BGGTS 0.87 1.04
NBPPL - 1.52
Amounts due to BHEL at the end of the year
BGGTS 112.07 143.55
RPCL 636.90 550.90
NBPPL 225.17 263.89
Amounts due from BHEL (incl. advances) at the end of the year
BGGTS 0.44 0.11
RPCL 20.90 20.95
NBPPL 23.58 67.95
Provision for Doubtful debts & advances
BGGTS 10.27 -
RPCL 20.81 20.17
NBPPL 190.15 188.70
Note: refer note [5] for provision for dimunition in value of investments

Note [39] - Disclosure [Movement in provisions] - Ind AS - 37
(` in Crore)
As at
Annual Review
a. Liquidated Damages
March 31,2023 March 31,2022
Opening Balance 8559.20 9511.80
Less: Usage/ Write off/payment 86.73 111.76
Less: Withdrawal/adjustments 497.42 992.91
Closing Balance 8234.67 8559.20
Corporate Profile
Liquidated damages are provided in line with the Accounting Policy of the Company and the same is dealt suitably in the accounts
on settlement or otherwise. Contingent liability relating to liquidated damages is shown in Para A(h) of Note 32.
(` in Crore)
As at
b. Contractual Obligation
March 31,2023 March 31,2022
Opening Balance
As disclosed in Note (19) 3855.48 3992.45
Board's Report
As disclosed in Note (9) 632.23 5195.76 699.86 5415.76
Add: Borrowing Cost 160.11 155.78
Less: PV Adjustment 94.65 107.45

Add/(Less): Change in estimate and rates (0.71) (18.11)
Closing Balance
The provision for contractual obligation is made considering the effect of time value of money in line with significant Accounting
Policy No. 11 to meet the warranty obligations as per the terms and conditions of the contract. The same is retained till the
completion of the warranty obligations of the contract. The actual expenses on warranty obligation may vary from contract
to contract and on year to year depending upon the terms and conditions of the respective contract.Contractual obligation,
pertaining to dues from projects fully provided for, disclosed in Non Current Allowances for B&D Debts in Note 6 and 9. Notice

Note [40] - Disclosure - Revenue from Contracts with Customers - Ind AS-115
a. Movement in impairment provisions
(` in Crore)
2022-23 2021-22
Particulars Trade Contract Trade Contract
receivables assets receivables assets
Opening balance 4314.79 1190.54 4887.12 1142.25
Add: Additions 279.02 271.45 344.18 146.78
Less: Write off 57.46 - 216.42 -
Less: Reversal* 213.90 83.34 700.09 98.49
Closing balance 4322.46 1378.65 4314.79 1190.54
b. Disaggregation of revenue from contracts with customers

(` in Crore)
Power Industry
Particulars Within India Outside Within India Outside Total
India India
2022-23
Revenue from customers
Timing of revenue recognition
(a) At a point in time (product/services) 2640.50 32.82 3335.32 44.57 6053.21
(b) Over time (projects) 13903.36 922.29 1181.90 75.54 16083.09
2021-22
(` in Crore)
2022-23 2021-22
Particulars
Power Industry Power Industry
CPSUs 5581.63 1639.38 3807.92 1405.00
TSGENCO 1874.88 2644.40 -
TANGEDCO 3112.02 - 1669.85 -
BIFPCL [Bangladesh] 831.59 - 1381.44 -
c. Contract Balances (net of provisions)

(` in Crore)

Contract assets (incl. unbilled revenue) 29740.03 26939.87
Contract liabilities 5635.01 6047.76

d. Contract revenue recognised
(` in Crore)
Annual Review
Revenue recognised against contract liabilities (adjustment of customer 3024.72 3592.89
advances and valuation adjustment during the year)
Revenue recognised against performance obligation satisfied in previous 892.15 94.41
year(impact due to change in contract revenue)
Construction of power projects is a long cycle business, where the contracts received by the company are either EPC contracts
(Engineering, Procurement & Construction) or BTG Packages (i.e. Boiler, Turbine and Generator packages). Power projects are
long gestation period projects with normal execution period of contract ranging between 3 to 5 years. BHEL scope of services
includes supply of equipment, erection, commissioning, synchronizing the plant to the grid, completing the trial operation and
Corporate Profile
providing the guaranteed parameters.
Although there are several components to the overall scope, such projects are generally considered one performance obligation.
The control transfers simultaneously over the execution period as the entity performs rather than at discrete points in time and
hence revenue is recognized over the period of time based on measure of progress (input cost method)
Note [41] - Disclosure pursuant to Ind AS-107 [Financial Instruments - Accounting

Classifications and Fair value measurements]
Board's Report
The Fair value of cash and cash equivalents, bank balances, loans, trade receivables, trade payables, security deposit and others
reasonably approximates their carrying amount. Trade receivables are evaluated after taking into consideration for Expected
Credit Losses. Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique.
Fair value hierarchy
The fair value of financial instruments have been classified in following categories depending on the inputs used in the

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(` in Crore)
Level 3 Heirarchy
Financial assets and liabilities measured at fair value- recurring fair value
measurements As at March As at March 31,2022
31,2023
Financial assets:
Investment in unquoted equity instruments 3.13 3.29
Notice

b Valuation Techniques used to determine fair value
Fair value of unquoted equity instruments is determined using Level 3 inputs which include inputs from the financial
statements of the investee Company based on Net asset value per share.
Reconciliation of fair value measurement of unquoted equity shares classified as FVTPL assets
(` in Crore)
As at March 31, 2022 3.29

Changes in fair value (0.16)
As at March 31, 2023 3.13
Financial Risk Management
Objectives and Policies

"The company's activities are exposed to different financial risks arising out of natural business exposures to any company
operating in the sector. The management of financial risk has always been an integral part of the company’s business strategies
and policies. The company reviews and aligns its policies and guidelines from time to time to address the financial risks in
line with the needs and expectations of its various stakeholders. Exposure risk from the use of financial instruments can be
categorized as under:
a. Credit risk
b. Liquidity risk
c. Market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies
and processes for measuring and managing risk, and management of Company's capital. Further quantitative disclosures are
included throughout these financial statements.
Risk management framework

BHEL has in place a Board approved Risk Management Charter & Policy which provides overall framework for Risk Management
in the company. The objective of the charter is to ensure that the risks are being properly identified, assessed and effectively
managed by adopting suitable risk mitigation measures. The company has 3-layer risk management framework. At the first
level, the Board Level Risk Management Committee (BLRMC) of the company is assigned with responsibility of reviewing the
company’s Risk Governance structure, Risk Assessment & Risk Management framework, Guidelines, Policies and Processes
thereof. Risk Management Steering Committee (RMSC) at the second level is responsible for adopting & implementing the risk
management framework and leading the risk management initiative across the company. Chief Risk Officer (CRO) being the
convener of BLRMC & RMSC is responsible for periodic reporting on risk management to Board/ BLRMC. Key risks being faced
by the company are analysed starting from Unit level for their respective areas to prepare risk mitigation plans and to ensure
implementation.
a. Management of Credit Risk

Credit risk is considered as an integral part of risk reward balance of doing business. BHEL is involved in setting up of power
projects pertaining to Government sector (State utilities, PSU's, Railways and other govt. departments etc.) and private sectors
in India and abroad. The projects are generally funded by Financial Institutions/ banks or payments are covered by Letter of
Credit (LC). The project duration ranges from 3 to 5 years and payments are generally realised in stages as per the terms of the
contract including advance, progress payments, milestone (including intermediate) payments and also retentions which are
released on completion of such projects. Since majority customers' profile pertains to Government sector, constituting 80%
of total receivables coupled with the fact that the company itself is a CPSE, credit risk is relatively low. In respect of private
sector customers , the payment terms are mainly through LC. The company has well established review mechanism for
receivables at various levels within organisation to ensure proper attention and focus for realisation in line with the company
policies, procedures and guidelines.The company uses expected credit loss model to assess the impairment loss or gain and
the disclosure of the same is made elsewhere. Further, adequate provisions are maintained to address any eventuality.

(i) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was:
(` in Crore)
Annual Review
Financial assets for which loss allowance is measured using 12 months
Expected Credit Losses (ECL)
Cash and cash equivalents 1560.52 732.62
Other bank balances 5082.06 6421.07
Other financial assets 362.19 298.29
Corporate Profile
Financial assets for which loss allowance is measured using Life time
Expected Credit Losses (ECL) including impairment loss
Trade receivables 6543.89 6228.59
Percentage of total receivable

Concentration of credit risk- Geographical
Within India 94% 93%
Outside India 6% 7%
Board's Report
Total 100% 100%
The company’s exposure to credit risk for trade receivables,contract assets and other receivables by type of counterparty are as
follows
Percentage of total trade receivables

Note

Central Public Sector Undertakings incl Railways and Govt Deptt 39% 37%
State Electricity Boards 41% 42%
Private Customers and others 14% 14%
Exports 6% 7%
Total 100% 100%
(ii) Impairment losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses
The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of
default is very low.
The movement in the allowance for impairment in respect of loans during the year was as follows:
(` in Crore)

Balance as at April 1 14.56 31.95
Impairment loss recognised / write off/ withdrawal 0.35 (17.39)
Balance as at March 31 14.91 14.56
Notice

(b) Reconciliation of impairment loss provisions
The movement in the allowance for impairment in respect of trade receivables and contract assets during the year was as follows:
(` in Crore)

Impairment loss recognised 550.47 490.97
Amounts written off/ withdrawal (354.69) (1015.01)
The company makes investments out of surplus funds as per policy of the company duly approved by the Board and in line with
the DPE guidelines .Credit risk on cash and cash equivalents and term deposits is very limited as the company generally invests
in deposits with financially strong banks and financial institutions.
b. Management of Liquidity risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including term deposits and the
availability of Funding through an adequate amount of credit facilities to meet obligations as and when due. Robust cash
management system and regular monitoring of cash flows enables management to plan and maintain adequate sources to
finance its funds requirement throughout the year. Besides adequate cash and bank balances, company enjoys credit facilities.
The company is able to meet all its fund requirements from internal resources i.e. the funds generated from operations and
also through short-term borrowings for better treasury management operations.
The following are the contractual maturities of non-derivative financial liabilities, based on contractual cash flows:
(` in Crore)
Financial Liabilities As at March 31,2023 As at March 31,2022

Within exceeding Within exceeding
Non-derivative financial liabilities
1 year 1 year 1 year 1 year
Trade payables 9895.83 2194.03 7749.59 2131.93
Deposits from contractors and others 416.66 247.10 431.36 206.45
Other Payables/liabilities
Employee dues 384.33 214.05
Other dues 364.44 397.85
Capex dues 111.50 8.60 80.83 8.65
Short term borrowings 5385.00 4745.00
Total 16592.52 2483.48 13668.49 2382.15

c Management of Market risk
The Company is exposed to certain currency,commodity, interest rate risks arising from its operations. The company has foreign
exchange risk management policy to cover the foreign exchange risks.To insulate the company against major commodity price
fluctuation,framework agreements including price pass through claims are being entered regularly with supply chain partners
Annual Review
including suppliers and customers. Surplus funds generated from operation are kept invested in short term deposits with PSU
Banks or large sized private banks only and in debt based schemes of public sector mutual funds , thereby minimizing any chance
of risk.
Foreign currency risk exposure -: The company's exposure to foreign currency risk at the end of reporting period, are as
follows:
(i) The derivative instruments that are hedged and outstanding as on 31.03.2023 is NIL (previous year Nil)
Corporate Profile
(ii) The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as under:
FC’ in Million
(` in Crore)
As at As at As at
Particulars
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Assets Euro Equivalent INR Euro Equivalent INR Others INR Others INR
Trade receivable 55.50 496.43 61.72 520.18 3.44 3.16
Contract assets 332.04 2959.08 327.57 2753.33 11.92 35.27
Board's Report
Other assets 1.24 10.29 0.93 7.56 75.49 21.98
Sub Total (A) 388.78 3465.80 390.22 3281.07 90.84 60.41

Liabilities
Advances from 36.15 240.84 36.42 242.50 22.65 39.47

customer
Trade payables and 34.70 315.32 101.40 869.73 579.03 131.99
others
Sub Total (B) 70.85 556.15 137.82 1112.23 601.68 171.46
Assets ( Net of 317.93 2909.64 252.40 2,168.84 (510.83) (111.05)
Liabilities)
Assets USD Equivalent INR USD Equivalent INR

Trade receivable 70.72 579.07 64.88 489.70
Contract assets 322.62 2640.15 333.77 2517.59
Other assets 0.36 2.41 6.08 45.30
Sub Total (A) 393.70 3221.63 404.73 3052.59
Liabilities
Advances from customer 58.00 326.40 78.92 457.24
Trade payables and 97.39 806.03 161.30 1231.18
others
Short term borrowings - - - -
Sub Total (B) 155.40 1132.43 240.22 1,688.42
Notice
Assets ( Net of Liabilities) 238.31 2,089.21 164.51 1,364.17
The above figures are net of provisions, if any

The impact of strengthening/weakening of the Indian Rupee vis a vis USD,EURO and others as at year end on profit or loss
is as shown below. This analysis is based on foreign currency exchange rate variances that the company considered to be
reasonably possible at the end of the reporting period. The analysis is performed on the same basis for previous year, albeit that
the reasonably possible foreign exchange rate variances were different, as indicated below.
(` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Effect on Profit/(loss) Strengthening Weakening Strengthening Weakening
1% movement
Euro 29.10 (29.10) 21.69 (21.69)
USD 20.89 (20.89) 13.64 (13.64)
Others (5.11) 5.11 (1.11) 1.11
Capital Management
The company's objective, while managing capital is to continue business as a going concern, safeguard,preserve and enhance its
capital to provide maximum return to shareholders, benefits to other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital. The Board of Directors also monitors the level of dividends to equity shareholders. The Company
monitors capital, using a medium term view and long term view, on the basis of a number of financial ratios generally used by
industry as well as by the rating agencies. The Company is not subject to externally imposed capital requirements. The Company’s
capital structure is managed against the various financial ratios as required to maintain highest credit ratings.
Note [42] - Operating Segment

The Segments have been identified as 'Power' and 'Industry', based on the orders booked by the respective business sectors.
These segments are driven by the three business sectors i.e. Power Sector, Industry sector, International Operations.
The Power segment comprises mainly thermal, gas, hydro and nuclear power plant businesses, related spares & services
business apart from new businesses of coal to chemicals, emission control equipment and spares for Non-BHEL sets.
The Industry segment caters to major equipment supplies and EPC works for a variety of sectors including transportation,
transmission, defence & aerospace, captive power, renewables, downstream oil & gas, energy storage, and electric mobility,
among others.
The order booked by International operation group is taken to Power or Industry as the case may be.
The Company's Committee of functional Directors has been identified as Chief Operating Decision maker (CODM).

(` in Crore)
For the year ended 31.3.2023 For the year ended 31.3.2022
Particulars
Power Industry Total Power Industry Total
Annual Review
I. SEGMENT REVENUE
Operating Revenue-External 17498.98 4637.32 22136.30 15361.25 4792.13 20153.38
II. SEGMENT RESULTS

a. Segment Results 1400.32 432.53 1832.85 1949.24 (39.02) 1910.22
b. Unallocated expenses (Net of income) 861.82 1118.55
c. Profit before finance cost & Incometax (a) 971.03 791.67
Corporate Profile
- (b )
d. Finance cost (Includes unwinding of 521.43 354.72
Interest)
e. Net Profit before Income Tax (c) - (d) 449.60 436.95
f. Income Tax 2.05 26.71
g. Net Profit/(loss) after Income Tax (e)-(f) 447.55 410.24
Board's Report
III ASSETS & LIABILITIES
a. Segment Assets 40666.48 8234.70 48901.18 37196.23 8194.28 45390.51
b. Common Assets 10902.73 11317.81
c. Total Assets 59803.91 56708.32
d. Segment Liabilities 22366.53 5140.86 27507.39 20096.06 4754.42 24850.48
e. Common Liabilities 5034.36 4886.68

f. Total Liabilities 32541.75 29737.16
IV OTHER INFORMATION
a. Capital Expenditure 121.75 80.26 140.56 55.40
b. Depreciation & Amortization 167.99 63.96 209.45 71.29
c. Non Cash Expenses (other than depreciation (507.61) (296.77) (1241.57) (62.11)
& amortization)
Within Outside Total Within Outside Total

GEOGRAPHICAL SEGMENTS
India India India India
1 Net Sales / Revenue from Operations 21061.08 1075.22 22136.30 18635.65 1517.73 20153.38
2 Non- Current Assets (PPE & Intangible 2826.69 3.14 2829.83 2812.21 17.23 2829.44
Assets)
3 Capital Expenditure 261.79 0.15 261.94 225.32 5.77 231.09
Major Customer- Details of Revenue from Single Customer exceeding 10% of total revenue of the BHEL
Particulars Power Industry Total Power Industry Total

Notice
CPSUs 5581.63 1639.38 7221.01 3807.92 1405.00 5212.92

TANGEDCO 3112.02 - 3112.02 1,669.85 - 1669.85
TSGENCO 1874.88 - 1874.88 2644.40 - 2644.40

Note [ 43 ] - Ratios
Particulars Numerator Denominator 2022-23 2021-22 % Variance Reason for variance
Total Current Total Current

(a) Current ratio 1.29 1.30 1.19
Assets Liabilities
(b) Debt-equity ratio
(c) Debt service coverage ratio

The company does not have any long term debt and hence these ratios are not applicable.
(d) Long term Debt to Working Capital
(e) Interest service coverage ratio

(f) Total Debt to Total Assets ratio Total Borrowings Total Assets 0.091 0.085 -7.07
Revenue from
Average Inventory
(g) Inventory turnover ratio contracts with 3.32 2.93 13.43
(Net)
customers
Revenue from
Average Trade
(h) Trade receivables turnover ratio contracts with 3.47 3.00 15.60
recievable (net)
customers
(i) Bad debts to accounts receivable Bad debts Gross Trade Insignicant change in absolute
0.003 0.012 -73.83
ratio written off Receivables terms
Current
(j) Current Liability Ratio Total Liabilities 0.718 0.719 -0.15
Liabilities
Purchases and Average Trade
(k) Trade payables turnover ratio 1.50 1.54 -2.59
Subcontracting Payables
Revenue from Total Current Assets

(l) Net capital turnover ratio contracts with - Total Current 3.29 3.10 5.92
customers Liabilities
Due to higher volume of

Profit for the Average Total Equity operations and income tax
(m) Return on equity ratio 1.63% 1.51% 7.67
year (PAT) - OCI refunds, also aided by exchange
rate gains
Profit Before
Interest,
Revenue from
(n) Operating profit ratio Depreciation 3.07% 3.48% -11.85
operations
& Tax - Other
Income
Profit for the Revenue from

(o) Net profit ratio 1.92% 1.93% -0.96
year (PAT) operations
Capital Employed =
Earning before Total Equity - CWIP
operations and income tax
(p) Return on capital employed interest and - Intangible assets 4.13% 3.44% 20.17
refunds, also aided by exchange
taxes under development
rate gains
-Deferred tax assets
(q) Return on investment NA
( r) Net worth (Rs. / Cr.) Share Capital + Reserve and Surplus 27262.16 26971.16 1.08
(s) Profit After Tax (Rs. / Cr.) Profit after Tax 447.55 410.24 9.09
operations and income tax
Profit for the Weighted average refunds, also aided by exchange
(t) Earning Per Share (Rs.) 1.29 1.18 9.09
year (PAT) no. of shares rate gains
(u) Capital redemption reserve (Rs. / Cr.) 37.87 37.87 0.00

Note [ 44 ] - ADDITIONAL DISCLOSURES
(` in Crore)
For the Year Ended
Annual Review
A. Category of Imports
2022-2023 2021-2022
Imports on CIF basis
Raw materials 734.51 620.73
Components and spare parts 674.48 1182.34
Capital goods 6.21 4.75
Total Imports 1415.20 1807.82
(` in Crore)
Corporate Profile
For the Year Ended
B. Types of Expenditure(incurred in foreign currency)
2022-2023 2021-2022
i) Royalty 51.36 38.19
ii) Know-how 13.72 6.57
iii) Professional consultation fee 17.83 3.48
iv) Interest and others (incl. on foreign sites) 31.68 30.06
Board's Report
(` in Crore)
C. Classification of Consumption For the Year Ended

[raw materials, components, stores & spare parts] 2022-2023 2021-2022
i) Imported ( including custom duty) 1609.95 2016.33
ii) Indigenous 9326.84 7459.26
iii) Percentage of total consumption

Imported 14.72 21.28
Indigenous 85.28 78.72
(` in Crore)
For the Year Ended

D. Earnings in foreign exchange
2022-2023 2021-2022
Physical Export of goods (FOB basis) 395.58 775.33
Erection & other services 596.38 608.29
Foreign exchange on deemed exports (incl. domestic contracts and SEZ 592.61 1093.21
export)
Total 1584.57 2476.83 Notice

(` in Crore)
For the Year Ended
E. Statement for raw materials and components consumed
2022-2023 2021-2022
Raw Materials
i) Ferrous materials 2575.80 1875.60
ii) Non-ferrous materials 476.47 260.50
iii) Insulating materials 136.75 106.15
iv) Insulated cables and Magnet wires 6.34 4.46
v) Other Components 2533.30 2450.89
vi) Others 146.62 364.80
Total 5875.28 5062.40
Bought Out Materials

i) Ferrous materials 38.39 30.14
ii) Non-ferrous materials 43.10 24.02
iii) Insulating materials 105.15 764.49
iv) Insulated cables and Magnet wires 31.47 20.99
v) Other Components 3190.16 2484.56
vi) Others 1249.06 817.55
Total 4657.33 4141.75
Note [45]
As per SEBI (Listing obligations & Disclosure Requirements) Regulations, 2015, the requisite details of loans and advances in the
nature of loans, given by the Company are given below:
i) No loans have been given (other than loans to employees), wherein there is no repayment schedule or repayment is beyond
seven years; and
ii) There are no loans and advances in the nature of loans, to firms/companies, in which directors are interested.
Note [46]
Assets and Liabilities are classified between Current and Non-current considering 12 months period as operating Cycle.
Note [47]
The Company has no transactions with companies struck off under section 248 of the Companies Act,2013 or section 560 of
the Companies Act,1956.
Note [48]
There were no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
Note [49]
The Company is complying with the number of layers prescribed under clause(87) of section 2 of the Act read with
Companies(restriction on number of layers ) Rules, 2017.

Note [50]
No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies
Act, 2013.
Annual Review
Note [51]
The Company has no transactions that has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act,1961 which is unrecorded in the books of accounts .
Note [52]
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
Corporate Profile
Note [53]
Prior period errors which are material are corrected retrospectively by restating the comparative amount for the prior periods
presented in which such error occurred. For the error occurred before the earliest period presented, the opening balances of
assets, liabilities and equity for the earliest period presented are restated.
Note [54]
Board's Report
Figures have been rounded off nearest to `' in crore with two decimal.
Note [55]
Previous year's figures have been regrouped/ rearranged wherever considered necessary.

Note [56]
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting
Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April
1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting
policies. Accounting policy information, together with other information, is material when it can reasonably be expected to
influence decisions of primary users of general purpose financial statements. The Company does not expect the amendment
to have any significant impact in its financial statements.
Ind AS 12 – Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning
obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company does not expect the amendment to have any significant impact in its
financial statements.
Notice

Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities
develop accounting estimates if accounting policies require items in financial statements to be measured in a way that
involves measurement uncertainty.The Company does not expect the amendment to have any significant impact in its
Note [57]
The Board of Directors has authorised to issue the Financial Statements 2022-23 in its meeting held on May 26, 2023

DIN: 09703643

FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Annual Review
Consolidated Financial Statements..................................... 264
Corporate Profile
Board's Report
Financial Statements (CFS)
Notice

INDEPENDENT AUDITOR’S REPORT
To the Members of
Report on the Audit of the Consolidated Financial Statements
Opinion 2013. Our responsibilities under those Standards are further

described in the Auditor’s Responsibilities for the Audit
We have audited the accompanying consolidated financial
of the Consolidated Financial Statements section of our
statements of BHARAT HEAVY ELECTRICALS LIMITED
report. We are independent of the Company in accordance
hereinafter referred to as “the holding company” and three
with the Code of Ethics issued by the Institute of Chartered
jointly controlled entities, comprising of the consolidated
Accountants of India together with the ethical requirements
balance sheet as at 31st March, 2023, the consolidated
that are relevant to our audit of the consolidated financial
statement of profit and loss (including other comprehensive
statements under the provisions of the Companies Act, 2013
income), the consolidated statement of changes in equity
and the Rules thereunder, and we have fulfilled our other
and the consolidated cash flow statement for the year then
ethical responsibilities in accordance with these requirements
ended, and a summary of the significant accounting policies
and the Code of Ethics. We believe that the audit evidence we
and other explanatory information (hereinafter referred to as
have obtained is sufficient and appropriate to provide a basis
“the consolidated financial statements”).
for our opinion on the consolidated financial statements.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid Key Audit Matters
financial statements give the information required by the Key audit matters are those matters that in our professional
Companies Act, 2013 (“the Act’) in the manner so required judgement were of most significance in our audit of the
and give a true and fair view in conformity with the Indian consolidated financial statements of the current period.
Accounting Standards prescribed under section 133 of the These matters were addressed in the context of our audit
Act read with the Companies (Indian Accounting Standards) of the consolidated financial statements as a whole, and
Rules 2015, as amended, (“Ind AS”) and other accounting in forming our opinion thereon, and we do not provide a
principles generally accepted in India, of the state of affairs separate opinion on these matters. We have determined the
of the Company as at March 31, 2023, the consolidated profit matters described below to be the key audit matters to be
and total consolidated comprehensive income, consolidated communicated in our report.
statement of change in equity and its consolidated cash flow
statement for the year ended on that date.
Basis for Opinion

We conducted our audit of the consolidated financial
statements in accordance with the Standards on Auditing
(SAs) specified under section 143 (10) of the Companies Act,

Accuracy of recognition, measurement, Principal Audit Procedures
presentation and disclosures of revenues and
Our audit approach consisted testing of the design and operating
other related balances in respect of “Revenue
Annual Review
effectiveness of internal controls and procedures as follows:
from contracts with Customers” under Ind AS
115. • Evaluated the effectiveness of controls over the preparation of information
that are designed to ensure the completeness and accuracy.
The application of this revenue accounting
standard involves certain key judgments • Selected a sample of existing continuing contracts and new contracts,
relating to identification of distinct performance and tested the operating effectiveness of the internal control, relating to
obligations, determination of transaction price identification of the distinct performance obligations and determination
of identified performance obligations, the of transaction price.
appropriateness of the basis used to measure
Corporate Profile
• Tested the relevant information, accounting systems and change relating
revenue recognized over a period, and
to contracts and related information used in recording and disclosing
disclosures including presentations of balances
revenue in accordance with Ind AS 115.
in the financial statements.
• Reviewed a sample of contracts to identify possible delays in achieving
Estimated efforts is a critical estimate to determine
milestones, which require change in estimated efforts to complete the
revenue, as it requires consideration of progress
remaining performance obligations.
of the contract, efforts incurred till date, efforts
required to complete the remaining performance • Performed analytical procedures and test of details for reasonableness
obligation. and other related material items.
Board's Report
Refer Note 43 to the consolidated financial
statements.
Assessment and recoverability of Trade Principal Audit Procedures
Receivables and Contract Assets
We have assessed the Company’s internal process to recognize the revenue
The Company has trade receivables outstanding and review mechanism of trade receivables and contract assets. Our audit
(net) of `6,543.89 Crore and contract assets (net) approach consisted testing of the design and operating effectiveness of
of `29,740.03 Crore at the end of March 31, 2023 internal controls and procedures as follows:

These balances are related to revenue recognized • Evaluated the process of invoicing with customers.
in line with Ind AS 115 “Revenue from contracts
• Obtained the list of project wise outstanding details and its review
with customers” for ongoing contracts and
mechanism by the management.
completed contracts. The assessment of its
recoverability is a key audit matters in the audit • Reviewed the guidelines and policies of the Company on impairment of
due to its size, pending balance confirmation trade receivables and contract assets.
of letters sent and high level of management
• Tested the accuracy of aging of trade receivables and contract assets at
judgment
the year end on sample basis.
Refer Notes 6, 9, 43 to the consolidated financial
• Performed analytical procedures and test of details for reasonableness,
statements.
recoverability and other related material items.
Notice

Assessment of Contingent Liability Principal Audit Procedures
There are a number of litigations pending The audit procedures included but were not limited to:
before various forums against the Company
- Obtaining a detailed understanding processes and controls of the
and the management’s judgement is required
Management with respect to claims or disputes
for estimating the amount to be disclosed as
contingent liability. - Performing following procedures on samples selected:
We determined the above area as a Key Audit - Understanding the matters by reading the correspondences,
Matter in view of associated uncertainty relating communications, minutes of the management meeting
to the outcome of these matters which requires
- Making corroborative inquiries with appropriate level of the management
application of judgment in interpretation of law.
personnel including status update, expectation of outcomes with the
Accordingly, our audit was focused on analysing
basis, and the future course of action contemplated by the Company,
the facts of subject matter under consideration
and perusing legal opinions, if any, obtained by the Management.
and judgments/ interpretation of law involved.
- Obtaining direct confirmation from the legal attorneys of the company
(Refer Note 33 to the Consolidated statements)
and considering their opinions /probability assessment of the outcomes.
- Evaluating the evidence supporting the judgement of the management
about possible outcomes and the reasonableness of the estimates.
- Evaluating appropriateness of adequate disclosures in accordance with
the applicable accounting standards.
Information Other than the Consolidated Financial Management’s Responsibility for the Consolidated
Statements and Auditor’s Report Thereon Financial Statements
The Company’s Board of Directors is responsible for the The Company’s Board of Directors is responsible for the
preparation of the other information. The other information matters stated in Section 134(5) of the Companies Act,
comprises the information included in Management 2013 (“the Act”) with respect to the preparation of the
Discussion and Analysis, Board’s Report including Annexures consolidated financial statements that give a true and fair
to Board’s Report, Business Responsibility Report, Corporate view of the consolidated financial position, consolidated
Governance and Shareholder’s information, but does not financial performance, consolidated total comprehensive
include the consolidated financial statements and our income, consolidated statement of change in equity
auditor’s report thereon. These reports are expected to be and consolidated cash flow statement of the Group in
made available to us after the date of this Auditor’s Report. accordance with the Ind AS and other accounting principles
generally accepted in India. This responsibility also includes
Our opinion on the consolidated financial statements does
maintenance of adequate accounting records in accordance
not cover the other information and we do not express any
with the provisions of the Act for safeguarding the assets of
form of assurance conclusion thereon.
the company and for preventing and detecting frauds and
In connection with our audit of the consolidated financial other irregularities; selection and application of appropriate
statements, our responsibility is to read the other information accounting policies; making judgments and estimates that
and, in doing so, consider whether the other information are reasonable and prudent; and design, implementation
is materially inconsistent with the consolidated financial and maintenance of adequate internal financial controls,
statements or our knowledge obtained in the audit or that were operating effectively for ensuring the accuracy
otherwise appears to be materially misstated. and completeness of the accounting records, relevant to
When we read such other information when made available the preparation and presentation of the financial statements
to us and if we conclude that there is a material misstatement that give a true and fair view and are free from material
therein we are required to communicate the matter to those misstatement, whether due to fraud or error.
charged with governance.

In preparing the consolidated financial statements, the Board • Conclude on the appropriateness of management’s use of
of Directors of the companies included in the Group are the going concern basis of accounting and, based on the
responsible for assessing the Group’s ability to continue as audit evidence obtained, whether a material uncertainty
a going concern, disclosing, as applicable, matters related exists related to events or conditions that may cast
Annual Review
to going concern and using the going concern basis of significant doubt on the Group’s ability to continue as a
accounting unless the Management either intends to going concern. If we conclude that a material uncertainty
liquidate the Group or to cease operations, or has no realistic exists, we are required to draw attention in our auditor’s
alternative but to do so. report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our
The respective Board of Directors of the company included
opinion. Our conclusions are based on the audit evidence
in the group are responsible for overseeing the Group’s
obtained up to the date of our auditor’s report. However,
financial reporting process.
future events or conditions may cause the Group to cease
Auditor’s Responsibilities for the Audit of the Consolidated to continue as a going concern.
Corporate Profile
Financial Statements • Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
Our objectives are to obtain reasonable assurance about
disclosures, and whether the consolidated financial
whether the consolidated financial statements as a whole
statements represent the underlying transactions and
are free from material misstatement, whether due to fraud
events in a manner that achieves fair presentation.
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, • Obtain sufficient appropriate audit evidence regarding
but is not a guarantee that an audit conducted in accordance the financial information of the entities within the group
with SAs will always detect a material misstatement when it to express an opinion on the consolidated financial
Board's Report
exists. Misstatements can arise from fraud or error and are statements. We are responsible for the direction,
considered material if, individually or in the aggregate, they supervision and performance of the audit of the financial
could reasonably be expected to influence the economic statements of such entities included in the consolidated
decisions of users taken on the basis of these consolidated financial statements of which we are the independent
financial statements. auditors. We remain solely responsible for our audit
opinion. Our responsibilities in this regard are further
As part of an audit in accordance with SAs, we exercise
described in para 1 to para 4 of the section titled “Other

professional judgment and maintain professional skepticism
Matters” in this Audit report.
throughout the audit. We also:
Materiality is the magnitude of misstatements in the
• Identify and assess the risks of material misstatement
consolidated financial statements that, individually or in
of the consolidated financial statements, whether due
aggregate, makes it probable that the economic decisions of
to fraud or error, design and perform audit procedures
a reasonably knowledgeable user of the financial statements
responsive to those risks, and obtain audit evidence that
may be influenced. We consider quantitative materiality and
is sufficient and appropriate to provide a basis for our
qualitative factors in (i) planning the scope of our audit work
opinion. The risk of not detecting a material misstatement
and in evaluating the results of our work; and (ii) to evaluate
resulting from fraud is higher than for one resulting from
the effect of any identified misstatements in the financial
error, as fraud may involve collusion, forgery, intentional
statements.
omissions, misrepresentations, or the override of internal
control. We communicate with those charged with governance
regarding, among other matters, the planned scope and
• Obtain an understanding of internal financial controls
timing of the audit and significant audit findings, including
relevant to the audit in order to design audit procedures
any significant deficiencies in internal control that we identify
that are appropriate in the circumstances. Under section
during our audit.
143(3)(i) of the Companies Act, 2013, we are also
responsible for expressing our opinion on whether the We also provide those charged with governance with a
companies have adequate internal financial controls statement that we have complied with relevant ethical
system in place and the operating effectiveness of such requirements regarding independence, and to communicate
controls. with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
Notice
• Evaluate the appropriateness of accounting policies used

where applicable, related safeguards.
and the reasonableness of accounting estimates and
related disclosures made by management.

From the matters communicated with those charged with Our opinion on the consolidated financial statements,
governance, we determine those matters that were of and our report on other legal and regulatory requirements
most significance in the audit of the consolidated financial below, is not modified in respect of the above matters
statements of the current period and are therefore the key with respect to our reliance on the unaudited financial
audit matters. We describe these matters in our auditor’s statements certified by the management.
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, Report on Other Legal and Regulatory Requirements
we determine that a matter should not be communicated 1. As required by Section 143 (3) of the Act based on our audit
in our report because the adverse consequences of doing and on the consideration of unaudited financial statements
so would reasonably be expected to outweigh the public certified by the management of jointly controlled entities
interest benefits of such communication. as referred in “Other Matters” paragraph, we report, to the
extent applicable, that:
Other Matters
(a) We have sought and obtained all the information
1. We did not audit the financial statements of one BHEL-GE
and explanations which to the best of our
Gas Turbine Services Pvt. Ltd. (jointly controlled entity).
knowledge and belief were necessary for the
The accompanying statements include the unaudited
purposes of our audit of the aforesaid consolidated
financial results/statements of this associate whose
financial statements;
financial statements/results reflect the group’s share of net
profit of ` 56.28 Crore and other comprehensive income (b) In our opinion, proper books of account as required
of ` 0.59 Crore for the year ended 31st March, 2023 as by law relating to preparation of the aforesaid
considered in the consolidated financial statements in consolidated financial statements have been kept
respect of this jointly controlled entity. Our opinion on so far as it appears from our examination of those
the consolidated financial statements, in so far as it relates books and management certified financials;
to the amounts and disclosures included in respect of this
(c) The consolidated balance sheet, the consolidated
jointly controlled entity, and our report in terms of sub-
statement of profit and loss (including other
sections (3) and (11) of Section 143 of the Act, insofar as it
comprehensive income), consolidated statement
relates to the aforesaid jointly controlled entity, is based
of changes in equity and the consolidated cash
solely on such unaudited financial statements.
flow statement dealt with by this report are in
2. We did not audit the financial statements of Raichur agreement with the relevant books of account
Power Corporation Ltd. & NTPC-BHEL Power Projects maintained for the purpose of preparation of the
Pvt. Ltd. (jointly controlled entities). The consolidated consolidated financial statements;
financial statements does not include the group’s share
(d) In our opinion, the aforesaid consolidated financial
of net loss and other comprehensive loss of these jointly
statements comply with the Indian Accounting
controlled entities as the Group has already recognised
Standards specified under Section 133 of the Act
accumulated losses equal to the cost of investment in its
read with the Companies (Indian Accounting
financial statements in respect of these jointly controlled
Standards) Rules, 2015, as amended, and other
entities. These financial statements are unaudited and
accounting principles generally accepted in India;
have been furnished to us by the management and our
opinion on the consolidated financial statements, in so (e) In terms Notification no. G.S.R. 463(E) dtd. 05-06-
far as it relates to the amounts and disclosures included in 2015 issued by the Ministry of Corporate Affairs, the
respect of these jointly controlled entities, and our report provision of Section 164(2) of the Companies Act,
in terms of sub-sections (3) and (11) of Section 143 of the 2013 in respect of disqualification of directors are
Act in so far as it relates to the aforesaid jointly controlled not applicable to the Company;
entities, is based solely on such unaudited financial (f) With respect to the adequacy of the internal
statements. These financial statements are not material financial controls over financial reporting of
to the group. the holding company and jointly controlled
3. The accounts of Power Plant Performance Improvements entities incorporated in India and the operating
Ltd., a Joint Venture of BHEL have not been consolidated effectiveness of such controls, refer to our separate
as the said company is under liquidation and full amount Report in “Annexure A”
of equity investment has been provided. (g) With respect to the other matters to be included
in the Auditor’s Report in accordance with Rule

11 of the Companies (Audit and Auditor’s) Rules, long-term contracts – Refer Note 42 to the
2014 to the extent applicable, in our opinion and consolidated financial statements in respect of
to the best of our information and according such items as it relates to the Group and jointly
to the explanations given to us and based on controlled entities and
Annual Review
the consideration of the management certified
iii. There has been no delay in transferring
financial statements including the other financial
amounts, required to be transferred, to the
information of jointly controlled entities, as noted
Investor Education and Protection Fund by
in “Other Matters” paragraph:
the holding company and jointly controlled
i. The consolidated financial statements disclose companies incorporated in India.
the impact of pending litigations on the
2. With respect to the matter of paras 3 (xxi) and 4 of the
consolidated financial position of the Group
Companies (Auditor’s Report) Order 2020, and three joint
and jointly controlled entities– Refer Note 33
entities remains unaudited as mentioned in the section
Corporate Profile
to the consolidated financial statements;
titled “Other Matters” and no CARO report has been issued
ii. Provision has been made in the consolidated by the Auditors of such entities as on the date of issue of
financial statements, as required under the this report. Based on the CARO report issued by us for the
applicable law or Indian accounting standards, company for the year ended 31st March 2023, we report
for material foreseeable losses, if any, on that there are no qualification or adverse remarks in the
CARO report.
Board's Report
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
UDIN: 23053714BHAHST5648 UDIN: 23404531BGYRDM2430 UDIN: 23406044BGUYQJ8011
Place: New Delhi

Date: May 26, 2023
Notice

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED IND AS
FINANCIAL STATEMENTS OF BHARAT HEAVY ELECTRICALS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the
Act”)
In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended March
31, 2023, we have audited the internal financial controls over financial reporting of Bharat Heavy Electricals Limited (hereinafter
referred to as “the Holding Company”) as of that date. We Our audit involves performing procedures to obtain audit
did not audit the financial statements of three Jointly Control evidence about the adequacy of the internal financial
Entities out of which all three Jointly Control Entities are controls system over financial reporting and their operating
unaudited. effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
Management’s Responsibility for Internal Financial internal financial controls over financial reporting, assessing
Controls the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of
The respective Board of Directors of the Holding company
internal control based on the assessed risk. The procedures
and jointly controlled companies, which are companies
selected depend on the auditor’s judgement, including the
incorporated in India, are responsible for establishing and
assessment of the risks of material misstatement of the
maintaining internal financial controls based on the internal
financial statements, whether due to fraud or error.
control over financial reporting criteria established by the
Company considering the essential components of internal We believe that the audit evidence we have obtained is
control stated in the Guidance Note on Audit of Internal sufficient and appropriate to provide a basis for our audit
Financial Controls Over Financial Reporting issued by the opinion on the Company’s internal financial controls system
Institute of Chartered Accountants of India (ICAI). These over financial reporting.
responsibilities include the design, implementation and
maintenance of adequate internal financial controls that Meaning of Internal Financial Controls Over Financial
were operating effectively for ensuring the orderly and Reporting
efficient conduct of its business, including adherence to
A company’s internal financial control over financial reporting
the respective company’s policies, the safeguarding of its
is a process designed to provide reasonable assurance
assets, the prevention and detection of frauds and errors,
regarding the reliability of financial reporting and the
the accuracy and completeness of the accounting records,
preparation of financial statements for external purposes in
and the timely preparation of reliable financial information,
accordance with generally accepted accounting principles. A
as required under the Companies Act, 2013.
company’s internal financial control over financial reporting
Auditor’s Responsibility includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
Our responsibility is to express an opinion on the Company’s, and fairly reflect the transactions and dispositions of the
internal financial controls over financial reporting based on assets of the company; (2) provide reasonable assurance that
our audit. We conducted our audit in accordance with the transactions are recorded as necessary to permit preparation
Guidance Note on Audit of Internal Financial Controls Over of financial statements in accordance with generally accepted
Financial Reporting (the “Guidance Note”) issued by the ICAI accounting principles, and that receipts and expenditures
and the Standards on Auditing, issued by ICAI and deemed of the company are being made only in accordance
to be prescribed under section 143(10) of the Companies with authorisations of management and directors of the
Act, 2013, to the extent applicable to an audit of internal company; and (3) provide reasonable assurance regarding
financial controls, both issued by the Institute of Chartered prevention or timely detection of unauthorised acquisition,
Accountants of India. Those Standards and the Guidance use, or disposition of the company’s assets that could have a
Note require that we comply with ethical requirements and material effect on the financial statements.
plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over Inherent Limitations of Internal Financial Controls Over
financial reporting was established and maintained and if Financial Reporting
such controls operated effectively in all material respects.
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility

of collusion or improper management override of controls, Opinion
material misstatements due to error or fraud may occur and
In our opinion, the Holding Company and three jointly
not be detected. Also, projections of any evaluation of the
controlled entities, which are entities incorporated in India,
internal financial controls over financial reporting to future
have, in all material respects, an adequate internal financial
Annual Review
periods are subject to the risk that the internal financial control
controls system over financial reporting and such internal
over financial reporting may become inadequate because of
financial controls over financial reporting were operating
changes in conditions, or that the degree of compliance with
effectively as at March 31, 2023, based on the internal control
the policies or procedures may deteriorate.
over financial reporting criteria established by the Company
Other Matters considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial
Our aforesaid reports under Section 143(3)(i) of the Act on Controls Over Financial Reporting issued by the Institute of
the adequacy and operating effectiveness of the internal Chartered Accountants of India.
financial controls over financial reporting in so far as it
Corporate Profile
relates three jointly controlled entities, which are companies
incorporated in India, is based on the corresponding
management certificate of these three jointly controlled
entities incorporated in India.
Board's Report
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
UDIN: 23053714BHAHST5648 UDIN: 23404531BGYRDM2430 UDIN: 23406044BGUYQJ8011
Place: New Delhi

Date: May 26, 2023
Notice

Annual Review Corporate Profile Board's Report Financial Statements (CFS) Additional Information Notice
273
Consolidated Balance Sheet as at March 31, 2023
(` in Crore)
A. ASSETS
1. Non-current assets
(a) Property, plant and equipment 3a 288 2408.74 2336.34
(b) Capital work-in-progress 3b 288 344.59 422.32
(c) Intangible assets 4a 289 67.24 62.12
(d) Intangible assets under development 4b 289 9.26 8.66
(e) Investment accounted for using equity 5 294 232.29 201.86
method
(f) Financial assets
(i) Investments 5a 295 3.13 3.29
(ii) Trade receivables 6 296 3415.54 3203.84
(iii) Other financial assets 7 298 83.96 3502.63 86.73 3293.86
(g) Deferred tax assets (net of liabilities) 8 298 3422.62 3530.08
(h) Other non-current assets 9 299 19300.14 18526.54
Total non-current assets 29287.51 28381.78
2. Current assets
(a) Inventories 10 300 6755.90 6560.21
(b) Financial assets
(i) Trade receivables 6 296 3128.35 3024.75
(ii) Cash and cash equivalents 11 301 1560.52 732.62
(iii) Bank balances other than cash and 12 301 5082.06 6421.07
cash equivalents
(iv) Other financial assets 7 298 278.23 10049.16 211.56 10390.00
(c) Current tax assets (net) 13 302 226.38 119.24
(d) Other current assets 9 299 13050.84 10792.53
Total current assets 30082.28 27861.98
TOTAL ASSETS 59369.79 56243.76
B. EQUITY AND LIABILITIES:
3. Equity
(a) Equity share capital 14 302 696.41 696.41
(b) Other equity 15 303 26131.62 25810.19
Total equity 26828.03 26506.60
4. Liabilities
4.1 Non-current liabilities
(i) Lease Liabilities 16 303 33.75 35.12
small enterprises
(b) Provisions 19 305 4101.02 3771.21
(c) Other non-current liabilities 20 305 2605.81 2212.65
Total non-current liabilities 9190.31 8366.01

Consolidated Balance Sheet as at March 31, 2023
(` in Crore)
Annual Review
4.2. Current liabilities
(i) Borrowings 21 306 5385.00 4745.00
(ia) Lease Liabilities 16 303 34.76 49.81
Corporate Profile
small enterprises
(b) Provisions 19 305 2796.63 3066.70
(c) Other current liabilities 20 305 3962.29 4635.96
Total current liabilities 23351.44 21371.15
Total liabilities 32541.75 29737.16
TOTAL EQUITY AND LIABILITIES 59369.79 56243.76
Board's Report

DIN: 09703643

FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Notice
Date: May 26, 2023

Consolidated Statement of Profit and Loss
(` in Crore)
March 31, 2023 March 31, 2022
INCOME
Revenue from operations 22 307 23364.94 21211.09
Other income 23 308 488.63 354.54
TOTAL INCOME 23853.57 21565.63
EXPENSES
Cost of raw materials consumed 5875.28 5062.40
Purchases of Bought out items 4657.33 4141.75
Civil, erection and engineering expenses 5421.08 4792.61
Consumption of stores & spares 404.18 271.44
Changes in inventories of finished goods, work in 24 308 (57.15) 525.64
progress and Scrap
Employee benefits expense 25 308 5700.63 5519.05
Other Expenses 26 309 647.03 162.62
Finance costs 27 311 521.43 355.96
Depreciation & amortisation expense 3.1/4.1 291/293 260.34 314.12
TOTAL EXPENSES 23430.15 21145.59
Profit / (loss) before share of net profits / loss of 423.42 420.04
investments accounted for using equity method and
tax
Share of net profit / (loss) of joint venture accounted 56.02 50.42
for using equity method
PROFIT BEFORE TAX 479.44 470.46
Tax expenses 28 311
a) Current tax (111.22) (77.13)
b) Deferred tax 113.27 2.05 102.88 25.75
PROFIT FOR THE YEAR (A) 477.39 444.71
OTHER COMPREHENSIVE INCOME 29 312
Items that will not be reclassified to profit or loss (net
of tax)
-Remeasurement of defined employee benefits (17.27) 76.87
-Share of OCI of JV accounted using equity method 0.59 0.03
OTHER COMPREHENSIVE INCOME FOR THE YEAR (16.68) 76.90
(B)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 460.71 521.61
(A+B)
Attributable to:
Equity holders of the parent 460.71 522.93
Non Controlling interest - (1.32)
TOTAL 460.71 521.61

Consolidated Statement of Profit and Loss
Annual Review
(` in Crore)
March 31, 2023 March 31, 2022
TOTAL OTHER COMPREHENSIVE INCOME FOR THE
YEAR
Attributable to:
Equity holders of the parent (16.68) 76.90
Corporate Profile
Non Controlling interest -
TOTAL (16.68) 76.90
TOTAL PROFIT FOR THE YEAR
Attributable to:
Equity holders of the parent 477.39 446.03
Non Controlling interest - (1.32)
Board's Report
TOTAL 477.39 444.71
Earnings per equity share 30 312
(1) Basic [Face value of ` 2 each] 1.37 1.28
(2) Diluted [Face value of ` 2 each] 1.37 1.28


DIN: 09703643
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

Notice
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Consolidated Statement of Changes in Equity
A. Equity Share Capital

(` in Crore)
Number of shares Amount

Equity shares of INR 2 each issued, subscribed and fully
paid
2022-23 2021-22 2022-23 2021-22
Balance at the beginning of the year 3482063355 3482063355 696.41 696.41
Changes in equity share capital during the year - - - -
Balance at the end of the year 3482063355 3482063355 696.41 696.41
B. Other Equity
(` in Crore)

Other items
Total Non
of other
Description Capital other controlling
Redemption Equity* interest
Reserves
Balance as at April 01, 35.18 37.87 30476.66 (4421.45) (318.08) 25810.19 0.00
2022
Changes in accounting - -
policy or prior period errors
Reinstated balance as at 35.18 37.87 30476.66 (4421.45) (318.08) 25810.19 0.00

April 01, 2022
Add: Total comprehensive 477.39 (16.68) 460.71 0.00
Income for the year
Less: Final dividend [ Note (139.28) (139.28) 0.00
31]
Balance as at March 31, 35.18 37.87 30476.66 (4083.33) (334.76) 26131.62 0.00
2023

Consolidated Statement of Changes in Equity
For the year ended March 31, 2022 (` in Crore)
Annual Review
Other items
Total Non
of other
Description Capital other controlling
Redemption Equity* interest
Reserves
Balance as at April 01, 2021 35.18 37.87 30476.66 (4867.48) (394.98) 25287.26 (11.66)
Changes in accounting - -
Corporate Profile
policy or prior period errors
Reinstated balance as at 35.18 37.87 30476.66 (4867.48) (394.98) 25287.26 (11.66)

April 01, 2021
Add: Total Comprehensive 428.95 76.90 505.85 (1.32)
Income for the year
Less: Liquidation of (17.08) (17.08) (12.98)
Subsidiary Equity & Minority
Board's Report
interest
Balance as at March 31, 35.18 37.87 30476.66 (4421.45) (318.08) 25810.19 0.00
2022
* Total other equiy represents owners of the parent


DIN: 09703643
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

Notice
M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Consolidated Statement of Cash Flows
(` in Crore)
March 31, 2023 March 31, 2022
A. CASH FLOW FROM OPERATING ACTIVITIES
Profit /(Loss) before tax 479.44 470.46
Adjustments for :
Provision and write off (86.31) (1120.06)
Depreciation and amortisation 260.34 314.12
Finance cost (including unwinding of interest) 521.43 355.96
Interest & dividend income (421.12) (302.79)
Share of loss /(profit) in joint venture (56.02) (50.42)
Divestment of stake in subsidiary 0.00 (17.08)
Unrealised Foreign Exchange loss/(gain) (401.85) 19.26
Amortisation of Governement Grant (8.90) (6.20)
Others (33.02) (6.61)
Cash generated / (used) in operations before working capital 253.99 (343.36)
changes
Adjustment for changes in working capital:
Contract Assets (2370.65) (2594.15)
Inventories (192.40) 603.40
Loans, advances & other assets (262.28) 143.49
Sub total (2733.29) 33.86
Trade payable 2103.68 1300.96
Advances from customers, deposits and others (167.84) (381.49)
Provisions (308.48) (358.60)
Sub total 1627.36 560.87
Net cash (used in) / from working capital (1105.93) 594.73
Cash generated / (used) in operations (851.94) 251.37
Income taxes paid (155.54) (258.00)
Refund of income taxes 265.96 666.88
Net cash (used in) / from operating activities (741.52) 660.25
B. CASH FLOW FROM INVESTING ACTIVITIES
Redemption / maturity of bank deposits (having original 1358.78 (1251.12)
maturity of more than 3 months)
Interest received 250.72 257.93
Sale proceeds from Investment 25.42 0.00
Dividend received from joint ventures 26.18 30.35
Sale of property,plant and equipment & Intangible Assets 7.76 6.90
Purchase of property, plant and equipment & Intangible Assets (188.40) (169.38)
Net cash (used in) / from investing activities 1480.46 (1125.32)

Consolidated Statement of Cash Flows
Annual Review
(` in Crore)
March 31, 2023 March 31, 2022
C. CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from short term borrowings 640.00 (87.53)
Proceeds / (repayment) of lease obligation (Principal) (49.77) (48.79)
Proceeds / (repayment) of lease obligation (Interest) (7.27) (9.57)
Dividend paid (139.18) (0.30)
Corporate Profile
Interest paid (354.82) (183.30)
Net cash (used in) / from financing activities (refer point 4) 88.96 (329.49)
D. Net increase/(decrease) in cash and cash equivalents 827.90 (794.56)
Opening balance of cash and cash equivalents (excluding 732.62 1519.90
cash credit of subsidiary)
Adjustment of Cash credit of subsidiary - BHEL EML from 0.00 7.28
opening balance
Closing balance of cash and cash equivalents [Refer Note 11] 1560.52 732.62
Board's Report
(1) Statement of cash flow has been prepared under the indirect method as set out in the Ind AS 7 - Statement of Cash flow.
(2) Previous year's figures have been regrouped/reclassifed wherever applicable
(3) Closing balance of Cash & Cash Equivalents includes exchange variation loss of ` Nil (Previous year `0.15 cr).
(4) Changes in liabilities arising from financing activities are available at Note [21(vi) ] and Note [39 b]
(5) During the year the company has accounted for income tax refund amounting to ` 266 Cr, including interest income of

` 106 Cr.

DIN: 09703643
FRN - 315104E FRN - 008567C FRN - 000709C/C400277

Notice

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Notes to the Consolidated financial statements for the year ended March 31, 2023
Note [1] Company Information Critical estimates and judgements in applying accounting
policies
Bharat Heavy Electricals Limited ( “BHEL” or “the Company”)
is a public limited company domiciled in India and has its Estimates and judgements made in applying accounting
registered office at BHEL House, Siri fort, New Delhi-110049 policies that have significant effect on the amounts
recognized in the financial statements are as follows:
The Company is an integrated power plant equipment
manufacturer engaged in design, engineering, manufacture, i) Revenue
erection, testing, commissioning and servicing of a wide
The Company uses input method based on cost approach
range of products and services for the core sectors of the
in accounting for the revenue in respect of construction
economy, viz. Power, transmission, Industry, Transportation,
contracts. Use of input method requires the Company to
renewable Energy, Oil & Gas and Defence.
estimate its costs relative to the total expected costs in the
The Company has Joint Venture Companies namely, BHEL- satisfaction of its performance obligation. The estimates
GE Gas Turbine Services Ltd., NTPC-BHEL Power Projects are assessed continually during the term of the contract
Pvt. Ltd., Raichur Power Corporation Ltd and Power Plant and the company re-measures its progress towards
Performance Improvement Ltd. complete satisfaction of its performance obligations
satisfied over time at the end of each reporting period.
Note [2] Basis of preparation, Company updates its estimated transaction price at each
measurement and significant accounting reporting period, to represent faithfully the circumstances
present at the end of the reporting period and the changes
policies (Consolidated Financial Statement)
in circumstances during the reporting period.
1. Basis of preparation of Financial Statements
ii) Property, plant and equipment
a) Statement of Compliance
The charge in respect of periodic depreciation is derived
The financial statements have been prepared in after estimating the asset’s expected useful life and
accordance with Indian Accounting Standards (Ind-AS) the expected residual value at the end of its life. The
as notified by Ministry of Corporate Affairs under the depreciation method, useful lives and residual values of
Companies (Indian Accounting Standards) Rules, 2015 Company's assets are estimated by management at the
and subsequent amendments thereof as well as with the time the asset is acquired and reviewed during each
additional requirements applicable to financial statements financial year.
as set forth in Companies Act, 2013 and amended thereof.
iii) Employee Benefit Plans
b) Basis of measurement
Employee defined benefit plans and long term benefit
The financial statements have been prepared on a going plans are measured on the basis of actuarial assumptions.
concern basis and on an accrual method of accounting. However, any changes in these assumptions may
Historical cost is used in preparation of the financial have impact on the reported amount of obligation and
statements except as otherwise mentioned in the policy. expenses.
c) Functional and presentation currency iv) Provisions and contingencies
The financial statements are prepared in INR, which is the Assessments undertaken in recognising provisions and
Company’s functional currency. contingencies have been made as per the best judgement
of the management based on the current available
d) Use of Estimates and Judgments
information.
The preparation of the financial statements in conformity
with Ind AS requires management to make judgements, 2. Property Plant & Equipment (PPE)
estimates and assumptions that affect the application of Property, plant and equipment are carried at cost less
accounting policies and the reported amounts of assets, accumulated depreciation and accumulated impairment
liabilities, income and expenses. Actual results may losses, if any.
differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions Depreciation on property, plant and equipment (other
to accounting estimates are recognised prospectively. than those used abroad under contract) is charged on
straightline method as per the useful life prescribed in

Schedule II of the Companies Act, 2013, except in the The right-of-use asset is depreciated using the straight-
following items where estimated useful life is based on line method from the commencement date to the earlier
technically assessed estimated useful life :- of the end of the useful life of the right-of-use asset or
the end of the lease term.
Annual Review
Particulars (Years)
In the case of Raichur Power Corporation Limited
Plant & equipment 15-30
Buildings 5-60 Depreciation is provided on straight line method at the
rates specified in the CERC/KERC Regulation 2009.
Electricals installations & eqipments 10-30
Erection equipment, Capital tools & tackles 5 Assets are depreciated to the extent of 90% of the cost
and 10% is retained as residual value.
Drainage, sewerage & water supply 30
Servers and networks 5 Depreciation on additions to assets is provided on a
pro-rata basis i.e. from /(upto) the date of the assets are
Solar Power Generation Plant 25
Corporate Profile
available for its intended use(disposed off). Individual
Depreciation methods, useful lives and residual values assets costing up to ` 5000 are fully depreciated in the
are reviewed in each financial year and changes, if any, year in which they are put to use.
are accounted for prospectively. Right-of-use assets
In the case of NTPC-BHEL Power Projects Pvt. Ltd.
are amortised over the shorter of the lease term and
their useful lives unless it is reasonably certain that the Depreciation on Property, Plant and Equipment is charged
Company will obtain ownership by the end of the lease on straight line method as per the useful life prescribed in
term. Schedule-II of the Companies Act, 2013.
Property Plant & Equipment costing `10,000/- or less
Board's Report
3. Leases
and those whose written down value as at the beginning
of the year is `10,000/- or less, are depreciated fully. At the inception of an arrangement, the Company
determines whether such an arrangement is or contains a
At erection/project sites: The cost of roads, bridges and lease.
culverts is fully amortized over the tenure of the contract,
while sheds, railway sidings, electrical installations and Upon initial recognition, assets taken on lease are
other similar enabling works (other than temporary capitalized under right-of-use assets at cost which

structures) are depreciated over the tenure of the contract comprises initial measurement of lease liability at present
after retaining residual value, if any. value, initial lease payments less incentives, initial direct
costs and estimated cost of dismantling and removing the
Assets used outside India pursuant to long term contracts underlying assets, if any.
are depreciated over the duration of the initial contract.
Lease payments made under leases are apportioned
Temporary structures are fully depreciated in the year of between the finance expense and the reduction of
construction. the outstanding lease liability. The finance expense is
Significant components with different useful lives are allocated to each period during the lease term so as
accounted for and depreciated separately to produce a constant periodic rate of interest on the
remaining balance of the liability.
In the case of BHEL-GE Gas Turbine Services Pvt. Ltd.
For assets given on finance lease, the Company recognizes
Depreciation is provided on the straight line method over
finance income over the lease term using effective interest
the estimated useful life of the assets, which are equal/
rate method. Initial direct costs incurred are included in
lower than the rates prescribed under Schedule II of the
the initial measurement of the finance lease receivable
Companies Act, 2013. In order to reflect the actual usage
and reduce the amount of income recognized over the
of assets, the estimated useful lives of the assets is based
lease term.
on a technical evaluation.
Lease income arising from operating lease is recognized
Asset category Estimated useful life (Years) as income over the lease period on a straight line basis
Plant and machinery 2-25 except where the periodic increase in lease rentals is in
Electrical installations 2-10 line with expected general inflation.
Notice
Furniture and fixtures 3-10 4. Intangible assets

Computers 2-5
Intangible items costing more than ` 10000/- are
Office equipment 2-10 evaluated for capitalization and are carried at cost less

accumulated amortization and accumulated impairment, the consideration to which the entity expects to be
if any. entitled in exchange for those goods or services.
Intangible assets are amortised in Statement of Profit In relation to construction and long term service
and Loss on a straight-line method over the estimated contracts, the company transfers control of goods or
useful lives from the date that they are available for use. services to the customer and recognizes revenue over
The estimated useful lives for the intangible assets are as the time. Revenue is recognized using input method
follows: based on the cost approach. Progress towards complete
satisfaction of performance obligation satisfied over time
Software 3 years
is re-measured at reporting period end.
Others 10 years
Revenue from sale of goods and services is recognized
Intangible assets having WDV ` 10000/- or less at the
on the transfer of control to the customer and upon
beginning of the year are amortized fully.
the satisfaction of performance obligations under the
Amortization period and amortization methods are contract.
reviewed in each financial year and changes, if any, are
Other Income
accounted for prospectively.
• Dividend income is recognized in statement of profit
Expenditure on research activities is recognized in
and loss on the date on which the Company’s right to
statement of profit and loss as incurred. Expenditure
receive payment is established.
on development activities is capitalized only if the
expenditure can be measured reliably, the product or • Interest Income is recognized using effective interest
process is technically and commercially feasible, future rate method.
economic benefits are probable and the company intends
• Claims for export incentives/ duty drawbacks, duty
to and has sufficient resources to complete development
refunds and insurance are accounted for on accrual
and to use or sell the asset. The expenditure capitalized
basis.
includes the cost of materials, direct labour, overhead
costs that are directly attributable to preparing the asset In the case of BHEL-GE Gas Turbine Services Pvt. Ltd.
for its intended use, and borrowing costs, if any.
Sales of Parts
Assets acquired for purposes of research and development Revenue from sale of gas turbine parts in the course
are capitalized. of ordinary activities is measured at fair value of the
consideration received or receivable, net of sales tax
5. Borrowing costs
and sales return. Revenue is recognized upon transfer of
Borrowing costs directly attributable to the acquisition, control of promised products or services to customers in
construction or production of qualifying assets, are added an amount that reflects the consideration we expect to
to the cost of such assets. receive in exchange for those products or services.
An asset that necessarily takes a substantial period of Engineering services

time, considered as more than twelve months, to get Revenue from fixed-price, fixed-timeframe engineering
ready for its intended use or sale is a qualifying asset for and supply contracts, where the performance obligations
the purpose. are satisfied over time and where there is no uncertainty
All other borrowing costs are recognized in the statement as to measurement or collectability of consideration,
of profit and loss in the period in which they are incurred. is recognized as per the percentage-of-completion
method.
6. Inventories
Repair services
Inventory is valued at cost or net realizable value, In case of repair services, revenue is recognized as per the
whichever is lower. In respect of valuation of finished terms of the contract with customer. Sale of replacement
goods and work-in-progress, cost means factory cost. In parts supplied under repair service contract is recognized
respect of raw material, components, loose tools, stores upon transfer of significant risk and rewards of ownership
and spares cost means weighted average cost. to the customer and is net of sales tax and sales returns.
7. Revenue Recognition In the case of Raichur Power Corporation Ltd. (RPCL)

• Income from contractors arising out of interest on works
Revenue is recognized to depict the transfer of promised
advance given to contractors is accounted on realization
goods or services to customers in an amount that reflects
/ acceptance basis.

• Revenue from Sale of infirm energy and other Long term Leave Liability
miscellaneous receipts is accounted by reducing the same
The Company measures the expected cost of accumulating
against the Capital Cost as per CERC/KERC guidelines.
compensated absences as the additional amount
Revenue from Sale of energy is recognised as per the expected to be paid as a result of the unused entitlement
Annual Review
guidelines in the CERC / KERC (Terms and conditions for that has accumulated at the end of the reporting period.
determination of Generation tariff) Regulations 2014. Expense on non-accumulating compensated absences is
recognized in the period in which the absences occur.
8. Foreign currency Translation/Transaction The Company records a liability for accumulated balance
Transaction in foreign currencies are recorded at the based on actuarial valuation determined using projected
unit credit method. Remeasurements and other expenses
exchange rate prevailing on the date of the transaction.
related to long term benefit plans are recognized in
Foreign currency denominated monetary assets and statement of profit and loss.
liabilities are translated into the functional currency at
10. Provisions
Corporate Profile
exchange rates in effect at the end of each reporting
period. Foreign exchange gains or losses arising from (i) Claims for liquidated damages against the Company
settlement and translations are recognized in the are recognized in the financial statements based on the
statement of profit and loss. management’s assessment of the probable outcome with
reference to the available information supplemented by
Non-monetary assets and non-monetary liabilities experience of similar transactions.
denominated in a foreign currency and measured
at historical cost are translated at the exchange rate (ii) The Company provides for anticipated costs for warranties
prevailing at the date of transaction. when it recognizes revenues on the related products or
contracts and maintain the same throughout the warranty
Board's Report
9. Employee Benefits period. The provision is based on historical experience /
technical assessment.
Defined contribution plans
(iii) When it is probable that total contract costs will exceed
The Company’s contribution to Pension fund including total contract revenue, the expected loss is recognised
Family Pension Fund for the employees is covered under immediately.
defined contribution plan and is recognized as employee
benefit expense in statement of profit and loss in the (iv) Other provisions are recognized if, as a result of a past
event, the Company has a present legal or constructive

periods during which services are rendered by employees.
obligation that can be estimated reliably, and it is probable
Defined benefit plans that an outflow of economic benefits will be required to
The Company’s gratuity scheme, provident fund scheme, settle the obligation.
travel claims on retirement and post-retirement medical However, where the effect of time value of money is
facility scheme are in the nature of defined benefit plans. material, provisions are determined and maintained by
The liability recognized in the balance sheet in respect discounting the expected future cash flows, wherever
of these defined benefit plan is the present value of the applicable.
defined benefit obligation at the end of the reporting
period less the fair value of plan assets,if any. The defined 11. Government Grants
benefit obligation is calculated annually by independent Government grants are recognized only when there
actuaries using the projected unit credit method. is reasonable assurance that the conditions attached
The present value of the defined benefit obligation is to them shall be complied with, and the grants will be
determined by discounting the estimated future cash received. Non monetary grants are accounted at Fair
outflows using an appropriate government bond rate that Value of assets and are treated as deferred income.
have terms to maturity approximating to the terms of the Deferred income is recognized in the statement of profit
related liability. and loss on a systematic and rational basis over the useful
Remeasurements comprising actuarial gains and losses as life of the asset. Government grants related to revenue
well as the difference between the return on plan assets are recognized on a systematic basis in the statement
and the amounts included in net interest on the net of profit and loss over the periods necessary to match
defined benefits liability (asset) are recognized in other them with the related costs which they are intended to
Notice
comprehensive income (net of income tax). compensate.
Other expenses related to defined benefit plans are

recognized in statement of profit and loss.

12. Income Taxes exceeds the recoverable amount of the cash generating
units. Impairment losses recognised in prior periods are
Income tax expense comprises current tax and deferred
assessed at each reporting date for any indications that
tax. Income tax expense is recognized in statement of
the loss has decreased or no longer exists.
profit and loss except to the extent that it relates to items
recognized in other comprehensive income or directly in An impairment loss is reversed if there has been a change
equity. in the estimates used to determine the recoverable
Current tax is the expected tax payable on the taxable amount. An impairment loss is reversed only to the extent
income for the year, using tax rates (tax laws) enacted or that the asset’s carrying amount does not exceed the
substantively enacted by the end of the reporting period carrying amount that would have been determined, net
and includes adjustment on account of tax in respect of of depreciation or amortisation, if no impairment loss had
previous years. been recognised.
Deferred tax is recognized using the balance sheet 14. Segment Reporting
method, providing for temporary difference between
the carrying amount of an asset or liability in the balance Revenue and expenses are identified to segments on the
sheet and its tax base. basis of their relationship to the operating activities of the
segment. Revenue, expenses, assets and liabilities which
Deferred tax is measured at the tax rates that are expected
are not allocable to segments on a reasonable basis, are
to apply when the temporary differences are either
included under "Unallocated revenue/ expenses/ assets/
realised or settled, based on the laws that have been
liabilities".
enacted or substantively enacted by the end of reporting
period.
15. Financial Instruments
A deferred tax asset is recognized to the extent that it is
i) Non-derivative financial instruments
probable that future taxable profit will be available against
which the temporary difference can be utilized. Non derivative financial instruments are classified as :
The carrying amount of Deferred tax assets are reviewed – Financial assets, measured at (a) amortized cost and
at each reporting period and are reduced to the extent (b) fair value through Profit and Loss (“FVTPL”).
that it is no longer probable that the related tax benefit
will be realized. – Financial liabilities carried at amortized cost.
Additional Income tax that arise from the distribution Initially, all financial instruments are recognized at their
of dividends are recognized at the same time when the fair value. Transaction costs are included in determining
liability to pay the related dividend is recognized. the carrying amount, if the financial instruments are not
measured at FVTPL. Financial assets are derecognized
13. Impairment of Assets when substantial risks and rewards of ownership of the
financial asset have been transferred. In cases where
Impairment of financial assets
substantial risks and rewards of ownership of the financial
The loss allowance in respect of trade receivables and assets are neither transferred nor retained, financial
lease receivables are measured at an amount equal to assets are derecognized only when the Company has
lifetime expected credit losses. not retained control over the financial asset. Financial
liabilities are derecognized when contractual obligations
The loss allowance in respect of all other financial assets,
are discharged or cancelled or expired.
which are required to be impaired, are measured at an
amount equal to lifetime expected credit losses if the Non-derivative financial assets are subsequently
credit risk on that financial instrument has increased measured as below:
significantly since initial recognition. However, if, at the
A. Amortized cost –
reporting date, the credit risk on a financial instrument
has not increased significantly since initial recognition, “Financial Instruments at amortized cost” are subsequently
the loss allowance is measured at an amount equal to measured at amortized cost using the effective interest
12-month expected credit losses. rate (EIR) method. Amortized cost is calculated by taking
into account any discount or premium on acquisition
Impairment of Non- Financial Assets
and fees or costs that are an integral part of the EIR. The
The carrying amount of cash generating units is reviewed EIR amortization is recognized in the profit and loss. The
at each reporting date where there is any indication of losses arising from impairment are recognized in the
impairment. An impairment loss is recognized in the statement of profit and loss.
statement of profit and loss where the carrying amount

B. FVTPL Category – related, a separate instrument with the same terms as
the embedded derivative would meet the definition of a
Financial instruments classified in this category are
derivative, and the combined instrument is not measured
subsequently carried at fair value with changes recorded
at fair value through profit and loss.
in the statement of profit and loss. Directly attributable
Annual Review
transaction costs are recognised in statement of Profit Derivatives are recognized and measured initially at fair
and Loss as incurred. value. Attributable transaction cost are recognized in
statement of profit and loss as cost. Subsequent to initial
Non-derivative financial liabilities are subsequently
recognition, derivatives are measured at fair value through
measured as below:
profit and loss.
Subsequent to initial recognition, non – derivative
financial liabilities are measured at amortised cost using 16. Cash and Cash Equivalent
the effective interest method. Cash and cash equivalents comprise cash at bank and
Corporate Profile
ii) Derivative financial instruments on hand. It includes term deposits and other short-term
money market deposits with original maturities of three
Embedded derivatives, if any, having material impact,
months or less that are readily convertible to known
are separated from the host contract and accounted for
amounts of cash and which are subject to an insignificant
separately if the economic characteristics and risks of the
risk of changes in value.
host contract and the embedded derivative are not closely
Board's Report
Notice

Property, plant and equipment
Refer point 2 of Note [2] for accounting policy on property, plant and equipment (PPE) (` in Crore)

Gross block 6620.97 6330.89
Less: Accumulated depreciation 4212.23 3994.55
The Net Block includes ` 155.26 Cr (Previous Year ` 154.83 Cr) in respect of RoU assets.
Company had opted for exemption under IndAS 101, and accordingly carrying value as on 31.03.2015 was considered as
deemed cost on IndAS transition date.

Capital work in progress
(` in Crore)

Plant & machinery and other equipments:
Under Erection/ Fabrication/awaiting erection 82.41 131.43
In transit 6.95 89.36 9.37 140.80
Construction work-in-progress -Civil 253.96 280.12
Construction stores (including in transit) 1.27 1.40
Total 344.59 422.32
Amount in CWIP for a period of

Particulars Less than 1-2 Years 2-3 Years More than Total
1 Year 3 Years
Projects temporarily suspended - 0.59 - - 0.59
CWIP Completion Schedule (CWIP which are overdue or has exceeded its cost compared to its original plan) -
As at March 31, 2023 (` in Crore)
To be completed in
1 Year 3 Years
Transformer Double bottlenecking 10.27 - - - 10.27
Other Projects less than ` 10 Crore (Total Nos - 16.99 0.09 - 0.34 17.42
18)
Other Projects less than ` 1 Crore (Total Nos - 4) - 0.280 - 1.60 1.88

Amount in CWIP for a period of

Annual Review
1 Year 3 Years
Projects temporarily suspended 0.59 0.07 2.36 9.31 12.33
CWIP Completion Schedule (CWIP which are overdue or has exceeded its cost compared to
its original plan) - As at March 31, 2022 (` in Crore)
To be completed in
Corporate Profile
Particulars Less than 1-2 2-3 Years More than Total
1 Year Years 3 Years
Selective Catalyst Reduction Plant - Bengaluru 62.12 - - - 62.12
Other Projects less than ` 10 Crore (Total Nos - 25) 37.83 - - - 37.83
Board's Report
Other Projects less than ` 1 Crore (Total Nos - 4) 0.07 - - 1.58 1.65

Intangible assets
Refer point 4 of Note [2] for accounting policy on intangible assets (` in Crore)

Gross block 327.88 308.92
Less: Accumulated amortisation 260.64 246.80
Company had opted for exemption under IndAS 101, and accordingly carrying value as on 31.03.2015 was considered as
deemed cost on IndAS transition date.

Intangible assets under development
(` in Crore) Additional Information

Intangible assets under development 9.26 8.66
9.26 8.66
Notice

Amount of Intangible Asset under development for a period of

1 Year 3 Years
Projects in progress 5.67 1.05 - 2.54 9.26
Intangible Assets under development Completion schedule (which are overdue or has
exceeded its cost compared to its original plan) - As at March 31, 2023 (` in Crore)
To be completed in
1 Year 3 Years
Projects in progress - - - - -
Amount of Intangible Asset under development for a period of

1 Year 3 Years
Projects in progress 1.39 1.18 6.09 8.66
Intangible Assets under development Completion schedule (which are overdue or has
exceeded its cost compared to its original plan) - As at March 31, 2022 (` in Crore)
To be completed in
1 Year 3 Years
SCR Project Know how 4.71 - - - 4.71

Note 3.1 - Details of Property, Plant & Equipment (` in Crore)
Description Opening Additions/ Deductions/ Closing Accumulated Depreciation/ Depreciation Accumulated Net Block as Net Block as
Annual Review
Balance Adjustments Adjustments Balance Depreciation Amortisation Adjustments Depreciation at 31.03.2023 at 31.03.2022
as on as on as at for the year as at
01.04.2022 31.03.2023 01.04.2022 31.03.2023
Land - Freehold 27.71 0.02 0.00 27.73 0.00 0.00 0.00 0.00 27.73 27.71
land (including
development
expenses)
Buildings - 1743.65 86.92 (6.49) 1824.08 669.59 56.04 (5.48) 720.15 1103.93 1074.06
Freehold Buildings
Corporate Profile
Roads, bridges & 15.85 0.25 0.00 16.10 14.16 0.60 0.00 14.76 1.34 1.69
culverts
Drainage, 31.49 4.73 (0.01) 36.21 8.21 1.17 (0.01) 9.37 26.84 23.28
Sewerage & water
supply
Plant & Equipment 3209.81 121.78 (5.96) 3325.63 2390.20 117.15 (2.96) 2504.39 821.24 819.61
Railway Siding 8.85 0.00 0.00 8.85 5.31 0.44 0.00 5.75 3.10 3.54
Locomotives & 28.33 0.00 0.00 28.33 17.57 1.66 0.00 19.23 9.10 10.76
Wagons
Board's Report
Furniture & fixtures 62.09 9.03 (1.11) 70.01 44.08 4.60 (0.86) 47.82 22.19 18.01
Vehicles 14.33 0.57 (0.00) 14.90 10.24 1.21 (0.00) 11.45 3.45 4.09
Office and Other 141.10 7.72 (1.46) 147.36 120.11 9.69 (1.23) 128.57 18.79 20.99
equipments
Electronic Data 152.83 2.55 9.87 165.25 141.97 8.50 9.89 160.36 4.89 10.86
Processing

Equipment
Electrical 251.67 30.57 4.04 286.28 180.44 4.31 3.31 188.06 98.22 71.23
Installations
Construction 71.85 0.25 (0.21) 71.89 69.22 1.23 (0.21) 70.24 1.65 2.63
Equipment
Fixed Assets 22.05 1.78 (0.91) 22.92 22.05 1.78 (0.91) 22.92 - -
costing upto
` 10,000/-
Solar power 119.54 19.84 4.08 143.46 26.48 4.87 1.10 32.45 111.01 93.06
generation
Right-of-use 429.75 33.59 (31.37) 431.97 274.92 33.00 (31.21) 276.71 155.26 154.83
Assets
TOTAL 6330.90 319.60 (29.53) 6620.97 3994.55 246.25 (28.57) 4212.23 2408.74 2336.35
Previous Year 6172.41 208.19 (49.71) 6330.89 3746.26 295.79 (47.50) 3994.55 2336.34 2426.15
Notes:
Gross Block as at 31.03.2023 includes assets condemned and retired from active use ` 14.90 crore (Previous year ` 7.11 crore)
Net Block as at 31.03.2023 includes assets condemned and retired from active use ` 0.12 Crore (Previous year ` 0.12 Crore)
Notice
Gross Block excludes cost of assets purchased out of grant received from Govt of India for research as executing agency since
the property does not vest with the Company ` 237.42 crore (Previous year ` 259.64 crore)

Table 3.1(a): Right-of-use of assets includes:
(` in Crore)
Opening Additions/ Deduc- Closing Accumulat- Deprecia- Depreci- Accumulat- Net Block Net Block
Description
Balance Adjust- tions/ Balance ed Depreci- tion/ Amor- ation Ad- ed Depreci- as at as at
as on ments Adjust- as on ation as at tisation for justments ation as at 31.03.2023 31.03.2022
01.04.2022 ments 31.03.2023 01.04.2022 the year 31.03.2023
Land 118.86 0.98 0.00 119.84 14.13 3.38 (0.00) 17.51 102.33 104.73
(including
development
expenses)
Buildings 1.63 0.00 0.00 1.63 0.36 0.05 0.00 0.41 1.22 1.27
Plant & 37.81 8.46 (6.26) 40.01 23.10 10.62 (6.26) 27.46 12.55 14.71
Equipment
Office & other 16.84 0.00 (0.33) 16.51 15.02 0.42 (0.31) 15.13 1.38 1.82
equipment
EDP 229.51 15.38 (19.13) 225.76 208.73 13.46 (19.13) 203.06 22.70 20.78
Equipment
Vehicle 5.50 3.80 (2.87) 6.42 3.08 1.34 (2.74) 1.68 4.74 2.42
Others 19.61 4.97 (2.78) 21.80 10.51 3.73 (2.77) 11.46 10.34 9.10
TOTAL 429.75 33.59 (31.37) 431.97 274.92 33.00 (31.21) 276.71 155.26 154.83
Previous Year 455.37 33.18 (58.80) 429.75 291.18 42.35 (58.61) 274.92 154.83 164.19

1. Land and buildings includes
a i)
Acres of land for which formal transfer/lease deed have not been 8421.02 8421.02
executed (in acres)
ii) Number of flats for which formal transfer/lease deed have not been 12 12
executed (in Nos.)
iii) Acres of land for which the cost paid is provisional (in acres) 480.04 480.04
[registration charges and stamp duty, (net of provision) would be]
accounted for on payment.
b. Acres of land leased to Ministry of Defence,Govt. of India Departments & 20.47 29.78
others (in acres)
c. Acres of land is under adverse possession/encroachment. (in acres) 873.48 883.66
d. 1297.86 acres (PY 1297.86 acres) of land pending mutation at Haridwar plant for which legal action is in process. It includes
land measuring 934 acres (PY 934 acres) which is in BHEL's possession but has been wrongly got mutated in the name of
SIDCUL Government of Uttarakhand in the year 2004 & 2007.
e. Further at Haridwar plant, 8 Acres of land is pending transfer to IOCL /State Government under office memorandum dated
01.12.2003 of Uttarakhand Government.
(Cost of land of (b to e) mentioned above is not material)

Particulars As at March As at March
31, 2023 31, 2022
Annual Review
2. i) Total Area of Land in acres 16660.72 16660.72
ii) Free hold land (Sale Deed) / Possessory Rights/license out of 3(i) in acres 15987.38 15987.38
iii) Leasehold land out of 3(i) in acres 673.34 673.34
3. The company provides 100% depreciation on an item of PPE having cost / opening net block up to ` 10000/- each. The
impact of providing 100% depreciation on an item of PPE on profit, without considering the impact of earlier years is as
under :
(` in Crore)
Corporate Profile
Particulars As at March As at March
31, 2023 31, 2022
100% depreciation on PPE upto `10,000/- charged off 7.21 6.50
Less: Normal depreciation on above. (4.39) (3.53)
Excess amount charged to depreciation for the year 2.82 2.97
4. Properties (i)2nd Floor office in Chatterjee International Centre, Kolkata (ii) Indora Residential flats, Nagpur – Land & buildings
and (iii) Vadodra Township - Land & buildings, having a net block value of ` 1.42 Crore, have been identified for sale under
asset monetisation drive, subject to requisite approvals.
Board's Report
Note 4.1 - Details of Intangible Assets (` in Crore)
Description Opening Additions/ Deductions/ Closing Accumulated Depreciation/ Depreciation Accumulated Net Block Net Block
Balance Adjust- Adjustments Balance Depreciation Amortisation Adjustments Depreciation as at as at
as on ments as on as at for the year as at 31.03.2023 31.03.2022
01.04.2022 31.03.2023 01.04.2022 31.03.2023

Internally
Developed
-Others 71.02 0.44 0.00 71.46 66.66 2.59 0.00 69.25 2.21 4.37
Other than
Internally
Developed
-Software 53.05 3.46 (0.25) 56.26 50.52 1.76 (0.25) 52.03 4.23 2.52
-Technical Know- 184.85 15.31 0.00 200.16 129.62 9.74 0.00 139.36 60.80 55.23
how
Total 308.92 19.21 (0.25) 327.88 246.80 14.09 (0.25) 260.64 67.24 62.12
Previous Year 290.83 18.25 (0.15) 308.92 228.67 18.27 (0.14) 246.80 62.12 62.16 Additional Information
Notice

Investment (Accounted for using equity method)
(` in Crore)

BHEL Gas Turbine Services Private Limited
Opening net assets 201.86 181.76
Profit / (Loss) for the year 56.02 50.42
Other Comprehensive income 0.59 0.03
Less: Dividend paid 26.18 30.35
Closing net assets 232.29 201.86
(i) RPCL (joint venture company) has incurred losses due to which the group has recognised accumulated losses equal to the
cost of investment as at March 31, 2019. The group has unrecognised share of losses amounting to ` 1152 Crore as per their
unaudited financial statement for the year ended March 31, 2023.
(ii) NBPPL (joint venture company) has incurred losses due to which the group has recognised accumulated losses equal to
the cost of investment as at March 31, 2019. The group has unrecognised share of losses amounting to ` 92 Crore as per
their unaudited financial statement for the year ended March 31, 2023.

Note [5a] -Non current assets
Financial assets - Investment
(` in Crore)
Annual Review
Particulars
No. of Shares No. of Shares (Face
Amount Amount
(Face value in INR) value in INR)
I Quoted equity instruments - -
II Unquoted equity instruments (fully paid up shares)
Corporate Profile
(a) Investment in joint ventures (at cost)
1999999 1999999
(i) Powerplant Performance Improvement Ltd. 2.00 2.00
(10) (10)
Less: Provision for impairment 2.00 2.00
(b) Investment in equity instruments fully paid up (at

FVTPL)
5000000
(i) Neelachal Ispat Nigam Ltd 5.00
(10)
Board's Report
Add / (less) Fair Value Adjustment (5.00) -
728960 728960
(ii) AP Gas Power Corporation Ltd. 0.91 0.91
(10) (10)
Add / (less) Fair Value Adjustment 2.22 3.13 2.38 3.29
1892 1892

(iii) Engineering Projects (India) Ltd. * *
(10) (10)
Share in Co-operative Societies #
Total 3.13 3.29
*Value of less than INR 1 lakh
Aggregate amount of unquoted investment 2.91 7.19
Aggregate amount of impairment in value of investments (0.22) 4.62
# Equity shares held in various employees cooperatives societies, valuing less than INR 1 lakh/-
Notice

Information about joint ventures

Country of
incorporation
Name of the joint ventures (JVC) Proportion (%) of ownership
One share less than One share less than

BHEL-GE Gas Turbine Services Private Limited (BGGTS)
50% 50%
NTPC-BHEL Power Projects Private Limited (NBPPL) 50% 50%
Raichur Power Corporation Limited (RPCL) India 22.14% 22.14%
- -

Power Plant Performance Improvement Limited (PPIL)
50% 50%
(i) The provision for impairment in value of investment in NTPC-BHEL Power Projects Private Limited has been made to the
extent of ` 50.00 crore (upto previous year ` 50.00 crore) based on the net financial position. The Board of Directors in its
meeting held on February 08, 2018 has accorded in-principle approval for pursuing the winding up of NBPPL. Ministry of
Power (MoP) has advised NTPC to consider buying out the stake of BHEL and decide either to continue it as an in-house EPC
arm or close it after completion of present work. This advise was noted by NBBPL Board in its meeting held on 29.08.2019.

(ii) The provision for impairment in value of investment in Powerplant Performance Improvement Limited amounting to ` 2.00
crore (previous year ` 2.00 crore) has been made since the JVC is under liquidation and the amount paid as equity is not
recoverable.
(iii) Investment in Neelachal Ispat Nigam Limited has been disposed and sale proceeds of ` 25.39 Crore received during the year.
Note [6] - Financial assets - Trade receivables


Particulars Non Current Non Current
Current Current
Credit impaired (included in allowances for B&D debts) 11176.04 367.08 11599.09 277.54
14919.98 3801.03 15137.48 3618.15
Total Trade Receivables (Net) 3415.54 3128.35 3203.84 3024.75
Simplified approach is followed for impairment of trade receivables, the classification is done in line with Ind AS 109.
Trade receivables includes:

Oustanding for following periods from due date of
payment Not Yet
Unbilled
Annual Review
Less 6 1-2 2-3 More Dues
than 6 months Years Years than 3 payment
I) Undisputed Trade receivables - considered 50.85 100.34 116.08 78.12 1410.59 - - 1755.98
goods
II) Undisputed Trade receivables - credit impaired - - - - - - - -
III) Disputed Trade receivables - considered good 1.72 0.01 3.56 21.61 1961.06 - - 1987.96
IV) Disputed Trade receivables - credit Impaired 95.54 91.62 283.17 340.39 10365.32 - - 11176.04
Corporate Profile
Oustanding for following periods from due date

of payment Not Yet
Unbilled
Particulars Less 6 1-2 2-3 More due for Total
Dues
I) Undisputed Trade receivables - considered goods 2395.97 331.70 281.11 107.69 317.48 - - 3433.95
Board's Report
III) Disputed Trade receivables - considered good - - - - - - - -
Oustanding for following periods from due date of

payment Not Yet
Unbilled
Dues
I) Undisputed Trade receivables - considered 39.02 38.13 172.50 288.06 1063.63 - - 1601.34
goods
III) Disputed Trade receivables - considered good 0.89 5.28 16.95 66.50 1847.41 - - 1937.03
Oustanding for following periods from due date Additional Information

of payment Not Yet
Unbilled
Dues
I) Undisputed Trade receivables - considered goods 2214.21 237.21 337.62 197.02 354.55 - - 3340.61
III) Disputed Trade receivables - considered good - - - - - - - -
Notice

Note [7] - Financial assets - Others

Current Current
Security deposits
Deposits with SEBs, port trust & others
Unsecured, considered good 83.96 116.98* 81.80 112.86*
Credit impaired 3.59 11.32 2.87 11.69
87.55 128.30 84.67 124.55
Less: Allowances for bad & doubtful deposits 3.59 11.32 2.87 11.69
83.96 116.98 81.80 112.86
Bank deposits with more than 12 months maturity - - 4.93 -

Interest accured on banks deposits - 140.68 76.62
Advance to Employees - 20.61 - 22.19

Less: Allowance for bad and doubtful advances - 0.04 - 0.11
- 20.57 - 22.08
Total 83.96 278.23 86.73 211.56
*includes amount deposited with courts of `88.79 crore (previous year `81.77 crore)
Security Deposits Includes:
Due from Directors - - - -
Dues from Officers - 0.01 - 0.01

Deferred tax assets (net of liabilities)

Deferred tax assets
Provisions 1654.02 1629.68
Dues allowed on payment basis 549.35 440.00
Depreciation (PP&E and Intangible assets) 12.13 46.04
On account of taxable loss 1105.79 1311.74
Others 101.33 102.62
Sub Total 3422.62 3530.08
Less : Deferred tax liabilities - -
Deferred tax assets (net of liabilities) 3422.62 3530.08

Note [9] - Other Assets
Refer point 13 of Note [2] for accounting policy on impairment of financial assets. (` in Crore)
Annual Review
Current Current
Contract assets (including unbilled revenue)
Credit impaired 2773.38 584.87 2768.53 663.72
21701.96 11396.32 21016.77 9355.35
Sub Total (A) 18928.58 10811.45 18248.24 8691.63
Corporate Profile
Security deposits
Deposits with tax authorities and others
Unsecured, considered doubtful 31.19 71.19 30.45 89.74
134.28 449.77 110.41 533.06
Less: Provision for bad & doubtful deposits 31.19 71.19 30.45 89.74
Sub Total (B) 103.09 378.58 79.96 443.32
Loans & advances
Board's Report
Unsecured, considered good
Advances towards purchases (Vendors & sub - Contractors) 41.14 128.69 41.54 56.42
Input Tax credit receivable - 1079.97 - 958.31
Capital advances 17.29 - 17.04 -
Unsecured, considered doubtful

Advances towards purchases (Vendors & sub - Contractors) 11.92 9.65 11.50 35.69
Input Tax credit receivable - 6.44 - 5.38
Capital advances - - 4.69 -
370.68 2025.92 264.20 1810.57
Less: Provision for bad & doubtful loans & advances 102.21 165.11 65.86 152.99
Sub Total (C) 268.47 1860.81 198.34 1657.58
Total (A+B+C) 19300.14 13050.84 18526.54 10792.53
Particulars
I) Undisputed Contract Assets - considered goods 15020.29 10811.45 13874.67 8691.63
II) Undisputed Contract Assets - credit impaired - - - -
III) Disputed Contract Assets - considered good 3908.29 - 4373.57 -
IV) Disputed Contract Assets - credit Impaired 2773.38 584.87 2768.53 663.72
Total 21701.96 11396.32 21016.77 9355.35
Loan & advances includes :
Notice

Inventories
Refer point 6 of Note [2] for accounting policy on valuation of inventories. (` in Crore)
Raw material & components 2900.92 2784.94
Material-in-transit 127.98 3028.90 129.30 2914.24
Work-in-progress 3482.75 3349.47
(including items with sub-contractors)
Finished goods 422.57 518.09
Inter - division transfers in transit 89.20 511.77 89.85 607.94
Stores & spare parts
Production 149.68 151.94
Fuel stores 6.14 5.70
Miscellaneous 47.37 203.19 50.32 207.96
Other Inventory
Materials with fabricators/contractors 85.43 60.10
Loose tools 24.35 24.32
Scrap (at estimated realisable value) 163.30 273.08 143.26 227.68
7499.69 7307.29
Less: Provision for non-moving inventory 743.79 747.08
Total 6755.90 6560.21
Note :
Write down of inventories 59.72 76.77
Less : reversal thereof 63.01 49.21
Net (3.29) 27.56

Financial assets - Cash & cash equivalents
Refer point 16 of Note [2] for accounting policy on cash and cash equivalent. (` in Crore)
Annual Review
Balances with banks
EEFC a/c 226.21 28.20
Current / cash credit a/c * 1205.22 1431.43 687.82 716.02
Corporate Profile
Cheques, demand drafts on hand 128.99 13.06
Cash & stamps on hand 0.08 0.08
Remittances in transit 0.02 3.46
Total 1560.52 732.62
* Includes ` 112.23 Cr in escrow account for specified projects.
Board's Report
Financial assets - Bank balances
(` in Crore)

Fixed deposits having maturity more than 3 months but not more 4852.34 6211.12
than 12 months
Fixed deposits against margin money for BG issued 213.43 202.65
Balances with banks (earmarked):
Charging station project 7.06 3.94
Unclaimed dividend a/c 1.91 1.81
CEFC A/c 6.92 -
Non-repatriable a/c 0.37 1.52
Sale proceeds of fractional shares on bonus issue 0.03 16.29 0.03 7.30
Total 5082.06 6421.07 Additional Information
Total Cash and Bank Balances [11 + 12] 6642.58 7153.69

Notice

Current tax assets / liabilities (net)
Refer point 12 of [Note 2] for accounting policy on income taxes. (` in Crore)
Advance tax & TDS 285.80 180.71
Less: Provisions for taxation 59.42 61.47
Total 226.38 119.24
Note [14] - Equity

Equity share capital
(` in Crore)
Particulars No.of Shares Amount No.of Shares Amount

(Face value (Face value in
in`) `)
A Equity share capital
Authorised 10000000000 2000.00 10000000000 2000.00

(2) (2)
Issued, subscribed and fully paid up 3482063355 696.41 3482063355 696.41

(2) (2)
a) The reconciliation of the number of equity shares outstanding

Balance as at the beginning of the year 3482063355 696.41 3482063355 696.41
Add/(Less): Changes during the year - - - -
Balance as at the end of the year 3482063355 696.41 3482063355 696.41
b) Details of shares held by shareholders holding more than 5% of

shares at the end of the year
President of India (Promoter) 2199650402 63.17% 2199650402 63.17%
Percentage change of Promoter holding during the year Nil Nil
Life Insurance Corporation of India 350770257 10.07% 350769757 10.07%
Face value per share in (`) 2.00 2.00

c) Terms / rights attached to the equity shares
The company has only one class of equity shares having par value of `2 per share (previous year `2 per share). Each holder
of the equity shares is entitled to one vote per share.
Annual Review
d) Issue of bonus share (in immediately preceding five years ended March 31, 2023)
The Company allotted bonus share on October 03, 2017 in the ratio of 1:2 i.e. one equity share for two existing fully paid-
up equity shares. Consequently, the paid-up capital was increased from `489.52 crore in FY 2016-17 to `734.28 crore in FY
2017-18 by capitalization of reserves.
e) Share buyback (in immediately preceding five years ended March 31, 2023)
The Company vide its Board approval dated October 25,2018, bought back its 18,93,36,645 fully paid-up equity shares of
the face value of `2 each representing 5.16% of the total issued and paid-up equity share capital from the eligible equity
shareholders of the Company for an amount of `1628,29,51,470 at a price of `86 per equity share in FY 2018-19. Consequently,
Corporate Profile
the paid-up share capital was reduced from `734.28 crore in FY 2017-18 to `696.41 crore in FY 2018-19.
Note [15] - Other Equity (` in Crore)

Capital reserve 35.18 35.18
Capital redemption reserve 37.87 37.87
General reserves 30476.66 30476.66
Board's Report
Retained earnings (4083.33) (4421.45)
OCI (Re-measurements of defined benefit plans) (334.76) (318.08)
Total 26131.62 25810.19
For additions and deduction under each of the above specific heads, SOCIE (Statement of Changes in Equity) may be referred.

Nature and purpose of reserves:
(a) Capital reserve : It represents mainly the excess of net assets taken, over the cost of consideration paid during amalgamation
of the then subsidiary company (HPVP) with the BHEL.
(b) Capital redemption reserve: The Company has recognised Capital Redemption Reserve on buy back of equity shares from
its general reserve.The amount in capital redemption reserve is equal to nominal amount of equity shares bought back.
(c) General reserve: This represents accumulation of profits retained by Company to meet future (known/unknown) obligations.
(d) Retained earnings: Retained earnings are profits that Company has earned till date, less transfer to general reserve, dividends
or other distributions to shareholders.
(e) Re-measurement of net defined benefit plans: Differences between the interest income on plan assets and the return actually
achieved, and any changes in the liabilities over the year due to changes in actuarial assumption or experience adjustments
within the plans, are recognised in 'Other comprehensive income' and these are subsequently not to be reclassified to the
Statement of Profit and Loss.
Note [16] - Financial liabilities - Lease Liabilities

Refer point 3 of Note [2] for accounting policy on lease. (` in Crore)

Particulars
Notice

Total 33.75 34.76 35.12 49.81
Further disclosures available at Note [39] on lease

Note [17] - Financial liabilities -Trade payables (` in Crore)
Particulars
Trade payables
(i) Total outstanding dues of micro enterprises and small enterprises 128.11 1211.53 127.45 745.82
(ii) Total outstanding dues of creditors other than micro enterprises 2065.92 8558.03 2004.48 6881.11
and small enterprises
(iii) Acceptances - 126.27 - 122.66
Total 2194.03 9895.83 2131.93 7749.59
Outstanding for following periods from due date of payment

Not Yet due
Particulars Less than 1 1-2 Years 2-3 More than Unbilled Dues for payment $ Total
Year Years 3 Years
I) MSME - - - - - 125.82 125.82
II) Others - - - - 0.36 1710.97 1711.33
III) Disputed dues - MSME - - - 2.29 - - 2.29

Not Yet due for
Particulars Less than 1-2 Years 2-3 More than Unbilled Total
payment $
1 Year Years 3 Years Dues
I) MSME 0.02 - - - 196.38 1010.60 1207.00
II) Others 581.83 0.58 0.27 2.10 1534.73 6455.49 8575.00
III) Disputed dues - MSME - - - - - 4.53 4.53
IV) Disputed dues - Others * - - - 6.98 - 102.32 109.30

Not Yet due for
payment $
I) MSME - - - - 0.04 125.96 126.00
II) Others - - - - 0.21 1637.95 1638.16
III) Disputed dues - MSME - - - 0.50 - 0.95 1.45

Not Yet due for
payment $
I) MSME - - - - 166.16 579.66 745.82
II) Others 2.41 - - - 1497.22 5488.49 6988.12
III) Disputed dues - MSME - - - - - -
IV) Disputed dues - Others * 0.04 0.97 0.51 13.10 - 1.03 15.65
$ Not yet due represents contractually retained amounts subject to settlement on achievement of milestones.
* Break up of outstanding is given based on contractually due date but these will be paid only if resolution of dispute occurs in
their favour.

Note [18] - Financial liabilities- Others
(` in Crore)
Annual Review
Particulars
Deposits from contractors & others 247.10 416.66 206.45 431.36
Liabilities :
- Employee dues - 384.33 - 214.05
- Capital Expenditure 8.60 111.50 8.65 80.83
- Others* - 354.33 - 386.92
Unpaid Dividend** - 1.91 - 1.81
Corporate Profile
Interest accured on borrowings - 8.20 - 9.12
Total 255.70 1276.93 215.10 1124.09
* Other Includes ` 0.03 Cr for sales proceeds of fractional shares arising out of bonus shares.
**No amount is due and outstanding to be transferred to Investor Education & Protection Fund at the year end.
Note [19] - Provisions
Board's Report
Refer point 9 & 10 of Note [2] for accounting policy on employee benefits and provisions.
. (` in Crore)

Particulars
Contractual obligation 2990.16 784.26 2620.03 1235.45
Provision for employee benefits* 878.37 1383.68 856.82 1060.62

Provision others 232.49 622.54 292.69 760.14
Corporate social responsibility - 6.15 1.67 10.49
Total 4101.02 2796.63 3771.21 3066.70
*[Further disclosure available at note (25) on employee benefits].
Note [20] - Other liabilities

Refer point 11 of Note [2] for accounting policy on Government grants (` in Crore)

Particulars
Contract liabilities 2585.67 3049.34 2193.43 3854.33
(Advances received from customers incl.excess of billing over
revenue)
Liabilities towards statutory dues - 908.32 - 775.55
Deferred income- Govt. grant # 20.14 4.63 19.22 6.08
Total 2605.81 3962.29 2212.65 4635.96
#Govt. grant is received for setting up of solar PV plant and manufacturing of modules , CEFC (Common Engineering Facility
Notice
Centre) scheme

Note [21] - Current Financial liabilities - Borrowings
(` in Crore)

Secured
Loans from banks (secured by fixed deposits) 1115.00 -
Loans from banks 4270.00 4745.00
(secured by hypothecation of raw materials, components, work-in-progress, finished goods &
stores)
Sub-total (A) 5385.00 4745.00

Unsecured
Sub-total (B) - -
Total borrowings (A+B) 5385.00 4745.00
(i) Details of sanctioned limits
Utilization
Sanctioned As at March 31, 2023 As at March 31, 2022
Description
Limit Value % Utilisation Value % Utilisation
(`/ Cr) (`/ Cr)
Non Fund Based Limits 54000 33602 62.23% 33936 62.84%
Bank Guarantees# 51000 30853 60.50% 31369 61.51%
Letter of Credit (inc. Buyer's Credit) 3000 2749 91.63% 2567 85.57%
Fund Based Limits 6000 4270 71.17% 4745 79.08%

WCDL 4270 4745
PCFC NIL NIL
Commercial Paper 5000 NIL NIL
Total Consortium limit (fund based + non fund based) of ` 60000 Cr secured by first charge by way of hypothecation of raw
materials, components, work in progress, finished goods, stores, trade receivables and other current assets both present and
future.
Company has been in discussion with Consortium Banks on reallocation of Banks limit (Fund Base ` 9000 Crore and Non
Fund `51000 crore) keeping overall limits unchanged at ` 60000 crore.
Commercial Papers are in the nature of unsecured short term borrowings.
# Outstanding Bank Guarantees include ` 4 Crore (P.Y. ` 439 Cr.) on a/c of BGs already replaced but pending vacation as on
March 31, 2023. Excluding this, the outstanding BGs as on 31.03.2023 is ` 30849 Cr. (Previous Year 30930 Cr.)
(ii) Loan from Banks ` 4270 Cr in FY 2022-23 represents WCDL (Working Capital Demand Loan) & ` 1115 Cr Loans against Fixed
Deposits. For Previous Year, ` 4745 Cr Loans represents WCDL.
(iii) The company has not been declared wilful defaulter by any Bank / Financial Institution.
(iv) The quarterly returns or statements of current assets filed by the Company with Banks or Financial Institutions are in agreement
with Books of accounts.
(v) Corporate Guarantees given for own obligations outstanding as on 31.03.2023 is ` 403 crore (previous year ` 1165 crore).

(vi) Change in Borrowings arising from Financing activities (` in Crore)
Annual Review
Opening Balance (excl cash credit) 4745.00 4841.99
Less : Adj of Unsecured loan by BHEL EML consequent to divestment - 8.21
Cash Flow during the year 640.00 (88.78)
Closing Balance (excl cash credit) 5385.00 4745.00
For changes in lease liability arising from financing activities, refer note no [b] of Note 39.
Note [22]
Corporate Profile
Revenue from operations

Particulars
March 31, 2023 March 31, 2022
Revenue from contracts with customers
Revenue from Construction and Project related activity 16083.09 14107.10
Board's Report
Sale of Product & Other services 6053.21 6046.28
Total (A) 22136.30 20153.38
Other operational income
Freight & insurance 187.84 129.35

Scrap sales 299.90 273.63
Recoveries from suppliers 131.33 113.98
Liabilities written back 406.22 239.95
Insurance claims 47.94 76.51
Export incentives 19.63 50.50
Others 135.78 173.79
Total (B) 1228.64 1057.71
Revenue from operations (A + B) 23364.94 21211.09
Revenue from Operations excludes Goods and service tax : 3566.00 2970.00
Notice

Note [23]
Other income

March 31, 2023 March 31, 2022
Interest income *
From banks 302.35 246.75
Others 118.77 56.04
Total (A) 421.12 302.79
Other income
Profit on sale of Investment - NINL 25.42 -
Government grants on Solar PV Plant for captive use / CEFC 8.90 6.20
Profit from sale of PPE & capital stores (Net) 7.76 6.90
Others 25.43 38.65
Total (B) 67.51 51.75
Total other income (A+B) 488.63 354.54
*Includes TDS 13.44 18.92
Note [24]
Changes in inventories of finished goods, work in progress and Scrap (Accretion) / Decretion
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Work -in -progress
Opening balance 3349.47 (133.28) 3786.38 436.91
Finished goods
Opening balance 518.09 95.52 628.72 110.63
Scrap
Opening balance 143.26 (20.04) 147.46 4.20
Inter-division transfer in transit 0.65 (26.10)
(Accretion) / Decretion (57.15) 525.64
Note [25]
Employee benefits expense
Refer point 9 of Note [2] for accounting policy on employee benefits. (` in Crore)

March 31, 2023 March 31, 2022
Salaries, wages, bonus, allowances & other benefits 4859.69 4713.20
Contribution to provident and other funds 473.56 460.01
Staff welfare expenses 244.69 239.89
Contribution to gratuity fund 114.14 95.78
Group insurance 8.55 10.17
Total 5700.63 5519.05

Note [26]
Other Expenses
(` in Crore)
Annual Review
Particulars
March 31, 2023 March 31, 2022
Power & fuel 487.67 415.08
Expenditure on other sub contracts 243.91 243.72
Carriage outward 249.55 241.23
Payment to security agencies 153.97 148.93
Repairs & maintenance:
Corporate Profile
Others 77.55 142.96 74.05 127.81
Insurance 108.03 95.88
Travelling & conveyance 110.59 84.89
Bank charges 90.76 92.17
R&D expense 12.81 12.10
Board's Report
Hire charges 51.01 48.22
Expenditure on collaborations & royalty 54.61 45.21
Rates & taxes 36.62 23.04
Office expense 29.32 27.32
Expenditure on skill development 11.47 12.83

Legal, audit & certification expense 47.67 32.45
EDP, software & lease line expense 17.61 17.40
Water charges 22.83 20.50
Expenditure in connection with exports 8.64 8.01
Rent non-residential 9.85 12.77
Entertainment & courtesy expenses 3.14 2.73
Environmental protection 5.14 4.59
Seminar, development and training expense 2.90 1.28
Unrealised loss in investment of equity share 0.16 0.29
Publicity & public relation expense 3.62 1.94
Miscellaneous expense 49.29 50.10
Exchange variation [Net (gain) / loss] (459.93) (81.62)
Provision and Write off (Details at point no vi below) (847.17) (1526.25)
Total 647.03 162.62
Notice

(` in Crore)

March 31, 2023 March 31, 2022
Further Details
(i) Director's fees 0.26 0.25
(ii) Expenditure on departmental repair & maintenance:
Others 33.34 33.09
(iii) Expenditure on research & development 128.49 122.83
(iv) Expenditure on foreign travel
No. of tours 302 127
Expenditure 5.57 1.92
(v) Provisions and write off

(Refer Point 10,13 of Note [2] for accounting policy on provision and impairement of assets.) (` in Crore)

Particulars
March 31, 2023 March 31, 2022
Doubtful debts, liquidated damages and loans, advances &
deposits
Contractual obligations
Other Provisions
Investment written off 5.36
Bad debts written off 30.62 98.34
Liquidated damages & contractual charges charged off 113.55 233.59
Losses written off 3.73 12.68
Total (847.17) (1526.25)

Note [27]
Finance costs
Refer point 5 & 10 of Note [2] for accounting policy on borrowing costs and provisions. (` in Crore)
Annual Review
Particulars
March 31, 2023 March 31, 2022
Discount on commercial papers 51.17 137.41
Unwinding of provisions 160.50 156.01
Interest cost:
Banks / Financial Institutions 296.55 47.89
Foreign Financial Instituitions 1.45 0.74
Corporate Profile
On lease obligation 7.03 8.50
Others 4.24 309.27 4.01 61.14
Other expenses on issuance of Commercial paper 0.49 1.40
Sub-total 521.43 355.96
Less: Borrowing cost capitalised - -
Total 521.43 355.96
Board's Report
Note [28]
Tax expenses

Particulars
March 31, 2023 March 31, 2022

Current tax
For earlier years (159.10) (111.22) (125.99) (77.13)
Deferred tax
For earlier years (0.75) 113.27 (5.12) 102.88
Total 2.05 25.75
Notice

Note [29]
Other comprehensive income / expenditure
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Income / (expenditure)
Re measurement of defined employee benefits (23.08) 102.72
Less: Income tax related to above items * (5.81) 25.85
Total (17.27) 76.87
* Includes
Current tax - -
Deferred tax (5.81) 25.85
Reconciliation of Income tax expense and accounting profit (TCI) multiplied by income tax rate
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Total Comprehensive Income / Loss (TCI) before tax (A) 456.95 573.21
Statutory income tax rate (B) 25.168% 25.168%
Tax expense C = (AXB) 115.01 144.27
Difference due to: (D)

Expenses not deductible for tax purposes 55.33 51.90
Difference in tax due to income chargeable to tax at special rate (0.76)
Tax effect on share of JVs Profit / Loss (14.25) (12.70)
Change in tax expense - earlier years (159.85) (131.11)
Subtotal (D) (118.77) (92.67)
Net Tax Expense E = (C+D) (3.76) 51.60
Note [30]
Earnings per share
(` in Crore)

Particulars
March 31, 2023 March 31, 2022
Profit / (loss) attributable to equity shareholders 477.39 446.03
Weighted average number of equity shares 348.21 348.21
Basic and diluted earnings per share of INR 2 each 1.37 1.28
Basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders of the Company
by the weightage average number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the net profit attributable to the equity shareholders of the Company by the weightage average number of equity shares
considered for deriving basic earnings per equity share and also the weightage average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.

Note [31]
Dividend per share
(` in Crore)
Annual Review
Particulars
March 31, 2023 March 31, 2022
Proposed dividend on equity shares not recognised as liability
Proposed final dividend of `0.40 per share for FY 2022-23 (FY 2021-22 139.28 139.28
` 0.40 per share).
Proposed dividend on equity shares is subject to the approval of the shareholders of the Company at the Annual General Meeting
and not recognised as liability as at the Balance Sheet date.
Corporate Profile
Note [32]
Notes to Accounts
The Consolidated financial statements relate to Bharat Heavy Electricals Limited (the Company), its interest in Joint venture
entities. The Consolidated financial statements have been prepared on the following basis-
Basis of Accounting
Board's Report
i) The financial Statements of joint ventures in the consolidation are upto the same reporting date as of the parent company
respectively.
ii) The consolidated financial statements have been prepared in accordance with Ind AS 110 on Consolidated Financial
Statements” and Ind AS-28 “Investment in Associates and Joint Ventures”.
Basis of Consolidation

1. The Company’s interest in equity-accounted investees’ comprise interests in joint venture. A joint venture is an arrangement
in which the Company has joint control, whereby the Company has rights to the net assets of the arrangement, rather than
rights to its assets and obligations for its liabilities. Interests in the joint venture are accounted for using the equity method.
They are initially recognized at cost, which includes transaction costs. Subsequent to initial recognitions, the consolidated
financials include the Company’s share of profit or loss and OCI of equity-accounted investees, until the date on which
significant influence or joint control ceases.
When the Group’s share of losses of a joint venture exceeds the Group’s interest in that joint venture, the Group discontinues
recognising its share of further losses. Additional losses are recognized only to the extent that the Group has incurred legal
or constructive obligations or made payments on behalf of the joint venture.
2. The consolidated financial statements have been prepared using uniform accounting policies for like transactions and other
events in similar circumstances and are presented to the extent possible.
Notice

The Consolidated Financial statements include the results of the following entities-
Principal place Proportion of ownership

Particulars
of business 2022-23 2021-22
Joint Venture Companies
(accounted for using equity method)
BHEL-GE Gas Turbine Services Private Limited India
50% 50%
NTPC-BHEL Power Projects Private Limited India 50% 50%
Raichur Power Corporation Limited India 22.14% 22.14%
a) Interest in Joint Ventures in respect of BHEL-GE Gas Turbine Services Ltd. is considered based on unaudited financial
statements for the year ended on 31.03.2023.
b) Interest in Joint Ventures in respect of NTPC-BHEL Power Projects Pvt. Ltd, and Raichur Power Corporation Ltd. are
considered based on unaudited financial statements for the year ended on 31.03.2023.
c) Interest in joint Ventures in respect of Power Plant Performance Improvement Ltd. (PPIL) have not been considered in
preparation of Consolidated Financial Statements as the company is under liquidation. Full amount of equity investment of
` 2 crore has been provided for as impairment.
Note [33]
Contingent liabilities and commitments
(` in Crore)

A. Contingent liabilities
Claims against the company not acknowledged as debt :
(a) Sales tax matters 1227.09 1279.61
(b) Service tax matters 606.56 920.46
(c) Court & arbitration matters 711.81 592.77
(d) Excise duty matters 166.39 162.18
(e) Customs duty and others 934.51 880.06
(f) Goods &Service Tax 4.14 -
(g) Other matters ( incl. disputed staff cases) 59.69 48.37
(h) Claim towards Liquidated damages (LD) 3596.61 2872.25
Total 7306.80 6755.70
(i) In view of various court cases, litigations and claims disputed by the Company, the outflow of resources is not ascertainable
at this stage. Generally,contingent Liability in respect of court & arbitration cases are shown on award/court judgement and
also reviewed on a case to case basis for its reporting in contingent liability.
(ii) It is not practicable for the Company to estimate the timing of actual cash outflows in respect of items (a) to (g) , if any, due
to pending resolution of the respective proceedings. However, the chances of cash outflow are contingent.
(iii) Liquidated damages represents likely claims or amount withheld by customer on account of delay in execution of projects
which will be settled after commissioning and trial operation of project based on delay analysis and is being disclosed in line
with Ind AS -37.

(iv) Movement in contingent liabilities (` in Crore)

Balance at the beginning of the year 6755.70 6045.49
Annual Review
Less: Reduction out of opening balance 727.70 129.84
Add: Additions (net) during the year 1278.81 840.05
Balance at the end of the year 7306.80 6755.70
(` in Crore)

B. Commitments
Corporate Profile
(a) Estimated amount of contracts, net of advances, remaining to be 282.05 209.20
executed on capital account and not provided for.
-- (The above includes related to acquisition of intangible assets) 32.71 7.56
(b) Investment in the Joint Venture entity (NBPPL) for which the company has 50.00 50.00
restrictions for their disposal for five years from the date of incorporation
/commercial operation of the project/first unit of the project/completion
of first EPC contract, as the case may be. This investment has been fully
provided for.
Board's Report
(c) In view of the nature of business, being long term construction contracts there may be other commitments for purchase of
material etc., which has been considered as normal business process.
Note [34]
Current Financial liabilities includes a sum of ` Nil (previous year ` 100.51 Crore) towards guarantee fee demanded by the
Government of India in respect of foreign currency loans taken by the Company at the instance of the Government upto 1990-
91. Since there was no stipulation for payment of such guarantee fee at the time the loans (guaranteed by Government) were

taken by the company, the same is reversed after review.
Note [35]
The Company had taken over Amorphous Silicon Solar Cell Plant (ASSCP), Gurgaon on April 1, 1999 from Ministry of New and
Renewable Energy (MNRE) on lease for a period of 30 years. The formal lease agreement with the Ministry of New and Renewable
Energy (MNRE) is yet to be finalised.
Note [36]
Balance shown under Trade receivables, Trade payables, contractors’ advances, deposits and stock / materials lying with sub-
contractors/ fabricators are subject to confirmation, reconciliation & consequential adjustment, if any. The Company is in the
business of long term construction contracts, bills are raised on the customers as per contract in line with billing schedule
approved by the customer and the reconciliation is carried out on ongoing basis & provisions made, wherever considered
necessary. Final reconciliation with customer is done on completion of project (Trial Operation and PG Test completed). Trade
Receivable of Completed Projects stand at ` 7963 Cr (Previous Year 7593 Cr.). Out of completed contracts, the projects reconciled
with customers have outstanding trade receivables of `6185 Cr. (previous year `6376 crore).
Notice

Note [ 37 ] - SUBSIDIARY
Proportion of ownership interest Proportion of ownership interest
held by the Company held by the Non Controlling
Principal Interest
(a) Name of subsidiary place of
As at As at
business
March 31, 2023 March 31, March 31, 2023 March 31, 2022
2022
BHEL Electrical Machines Limited India - - - -
BHEL has transferred its stake in BHEL EML to Govt. of Kerala on August 11th, 2021.
(b) Summarized financial information of Subsidiary Company is as follows. The amounts disclosed for subsidiary are before
inter- company eliminations:-
(` in Crore)
As at
Summarized Balance Sheet
March 31, 2023 March 31, 2022
Non-current assets - -
Current assets - -
Total Assets - -
Non-current liabilities - -
Current liabilities - -
Total Liabilities - -
Net Assets - -
Accumulated Non Controlling Interest (NCI) - -
(` in Crore)
For the Year

Summarized statement of profit and loss
2022-23 2021-22
Revenue - -
Profit/ (loss) for the year - (2.69)
Other Comprehensive Income - -
Total Comprehensive Income - (2.69)
Profit/ (loss) attributable to NCI - (1.32)
(` in Crore)
For the Year

Summarized Cash flows
2022-23 2021-22
Cash flows from operating activities - (0.02)
Cash flows from investing activities - -
Cash flows from financing activities - -
Net increase/ (decrease) in cash and cash equivalents - (0.02)
BHEL has transferred its stake in BHEL EML to Govt. of Kerala on August 11th, 2021.

Note [ 38] - JOINTLY CONTROLLED ENTITIES
A. Summarized financial information of the joint venture, based on its Ind-AS financial statements, and reconciliation with
the carrying amount of the investment in financial statements are set out below:
Annual Review
(` in Crore)
Principal Proportion of ownership Carrying Amount

a) Name of the joint ventures (accounted for at
place of As at March 31 As at March 31
equity method)
business 2023 2022 2023 2022
BHEL-GE Gas Turbine Services Private Limited (BGGTS) India 50% minus 1 50% minus 1 2.38 2.38
share share
NTPC-BHEL Power Projects Private Limited (NBPPL) India 50.00% 50.00% - -
Corporate Profile
Raichur Power Corporation Limited (RPCL) India 22.14% 22.14% 664.04 664.04
(a) BGGTS is a Joint Venture Company of BHEL and GE, USA formed to take up repair & servicing of GE designed Gas Turbines.
(b) BHEL along with NTPC Limited promoted a joint venture company “NTPC- BHEL Power Projects Private Limited” for carrying
out EPC contracts for Power Plants and other infrastructure Projects in India and abroad.
The Board of Directors in its meeting held on February 08, 2018 has accorded in-principle approval for pursuing the winding
up of NBPPL. Ministry of Power (MoP) has advised NTPC to consider buying out the stake of BHEL and decide either to
continue it as an in-house EPC arm or close it after completion of present work. This advise was noted by NBBPL Board in its
meeting held on 29.08.2019.
Board's Report
(c) Raichur Power Corporation Limited, a joint venture company of BHEL & Karnataka Power Corporation Ltd(KPCL), has been
promoted for setting up of a 2x800 MW supercritical thermal power plant at Yeramarus, Raichur, Karnataka and 1x800 MW
supercritical thermal power plant at Edlapur, Raichur, Karnataka on build, own and operate basis. COD of Unit I and Unit II of
Yeramarus TPP achieved in March 2017 and April 2017 respectively.
(d) The provision for impairment in value of investment in Powerplant Performance Improvement Limited amounting to ` 2
crore (previous year ` 2 crore)has been made since the Company is under liquidation and the amount paid as equity is not

recoverable.
B. Summarized financial information of Joint Ventures companies of Group are as follows:-
The table below summarises financial information of Joint Venture Companies of the group accounted for at equity method.
The information is as per the financial statements of the relevant Joint venture Companies and not the group's share of these
amounts.
BHEL-GE Gas Turbine Services Pvt. Ltd (` in Crore)
As at
Balance Sheet
March 31, 2023 March 31, 2022
Non-current assets 63.28 126.30
Current assets 813.49 626.37 Additional Information
Cash and Cash Equivalent (incl.bank balances) included in Current assets 50.02 41.97
Non-current liabilities 9.24 12.77
Non-Current financial liabilities (excluding Trade Payables) 9.24 12.77
Current liabilities 402.94 336.69
Current financial liabilities (excluding Trade Payables) 73.76 67.62
Notice

(` in Crore)
For the year ended

Statement of Profit and Loss
March 31, 2023 March 31, 2022
Interest Income 18.32 15.79
Depreciation and Amortization 8.91 9.65
Interest Expense 0.87 1.08
Income tax Expense 38.54 34.27
Profit / loss for the year 112.56 100.84
Other Comprehensive Income (1.18) (0.06)
Total Comprehensive Income 113.75 100.90
Raichur Power Corporation Ltd. (` in Crore)
As at
Balance Sheet
March 31, 2023 March 31, 2022
Current assets 3694.36 2860.89
Cash and Cash Equivalent included in Current assets 17.10 11.11
Non-Current financial liabilities (excluding Trade Payables) - -
(` in Crore)
For the year

March 31, 2023 March 31, 2022
Income tax Expense - -
Profit / (loss) for the year (1114.58) (678.22)
Total Comprehensive Income (1114.58) (678.22)
NTPC-BHEL Power Projects Pvt. Ltd. (` in Crore)
As at
Balance Sheet
March 31, 2023 March 31, 2022
Current assets 404.19 390.93
Cash and Cash Equivalent [incl. bank balances] included in Current assets 6.90 6.67

(` in Crore)
For the year ended

March 31, 2023 March 31, 2022
Annual Review
Income tax Expense 3.69 (12.86)
Profit / (loss) for the year (5.49) (19.87)
Total Comprehensive Income (5.49) (19.73)
Corporate Profile
Note [39]
Disclosure on Leases - Ind AS 116
Lease Commitments - Company as Lessee
The company's significant leasing agreements are in respect of land, building and EDP equipments. The company has entered
into a rate contract for lease arrangement for computer items, printers, video conferecing equipments and peripherals. Assets
taken on lease are capitalised and disclosed separately as Right-of-use assets in the property, plant and equipment. The lease
rentals are allocated between interest, maintainence and principal value. The interest and maintenance charges are charged to
Board's Report
Statement of Profit and Loss and principal amount is adjusted to lease obligations.
The company has applied the following available practical expedients :
(i) The short-term leases exemptions to leases with lease term less than 12 months
(ii) The low value lease exemption to leases where underlying asset is of low value (assets of less than ` 50,000 in value).
a. Age-wise analysis of Lease Liabilities are as follows

(` in Crore)
Future minimum lease payments Interest
Present value [PV] of minimum
lease payments
Particulars As at As at As at
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Not later than 1 year 36.62 54.51 3.52 6.60 33.10 47.91
#
Later than 1 year and 34.60 40.52 2.78 5.40 31.82 35.12
not later than 5 years
Later than 5 years 2.14 - 0.21 - 1.93 -
# The amount of future minimim lease payments in respect of leases where remaining lease term as at the end of March 31,2023 Additional Information
is less than 12 months is ` 16.70 cr (Previous year ` 7.56 cr).
b Movement in lease liabilities during the FY year 2022-2023 (` in Crore)
As at
Particulars
March 31, 2023 March 31, 2022
Lease Liabilities As at April 1* 84.93 101.61
Notice
Add: Accretion of interest 7.03 8.50

Less : Payments/Adjustment 57.04 58.36
Lease Liabilities as at March 31* 68.50 84.93
* includes interest accrued of ` 1.66 crore ( PY ` 1.90 crore) & ` 1.90 crore (PY `2.96 crore) as at March 31,2023 & March 31,2022 respectively

c Amounts recognised in profit or loss: (` in Crore)
For the year ended
Particulars
March 31, 2023 March 31, 2022
Expense relating to Short-term leases 4.91 2.27
Expense relating to low value assets leases 1.26 1.23
Depreciation charge of right-of-use assets 33.00 42.35
Interest expense (included in finance cost) 7.03 8.5
d The company has various lease contracts that have not yet commenced . The future lease payments for these non-
cancellable lease contracts are as follows:
(` in Crore)
As at
Particulars
March 31, 2023 March 31, 2022
Not later than 1 year 0.04 -
Later than 1 year and not later than 5 years 0.06 -
Later than 5 years - -
Note [40] - Disclosure on 'Employee benefits' - Ind AS 19

A. The Company has following Schemes in the nature of Defined Benefits plans :
i) Gratuity Scheme
ii) Post Retirement Medical Scheme
iii) Provident Fund Scheme
iv) Travel claim on Retirement
(i) Gratuity (Funded Plan)

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more
is entitled to gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of
service subject to a maximum limit of `20 Lakhs.The gratuity liability arises on account of future payments, which are required
to be made in the event of retirement, death in service or withdrawal. The liability has been assessed using projected unit credit
actuarial method.
2023 2022 2023 2022 2023 2022
Opening balance 1933.60 2011.42 1581.44 1697.44 352.16 313.98

Add/(less) Adjustment on sale of - (6.16 ) - - - (6.16)
stake in subsidiary
Current Service Cost 89.49 95.78 - - 89.49 95.78
Past Service Cost - - - - - -
Interest cost /(income) 135.35 135.35 110.70 135.35 24.65 -
Profit for the Year

Annual Review
2023 2022 2023 2022 2023 2022

income ( OCI) :
Actuarial loss (gain) arising
from:
Change in Demographic (19.36) - - - (19.36) -
Corporate Profile
Assumption
Change in Financial Assumption (74.88) (47.57) - - (74.88) (47.57)
Experience Adjustment 23.95 (19.22) (0.73) (15.35) 24.68 (3.87)
Total amount recognised in other (70.29) (66.79) (0.73) (15.35) (69.56) (51.44)
comprehensive income
Others
Contributions paid by the - - - - - -
Employer
Benefits paid (237.93) (236.00) (237.93) (236.00) - -
Board's Report
Unpaid Benefits paid
Closing balance 1850.22 1933.60 1453.48 1581.44 396.74 352.16
Details of Plan assets

Funds managed by Insurer 79.03% 76.96%

High quality Corporate bonds (quoted) 16.52% 19.55%
State Government securities (quoted) 3.00% 2.80%
Bank Balance 1.45% 0.69%
Total 100.00% 100.00%

Upto 30 Years 3% 3%
Notice

(` in Crore)
Gratuity
Change in Salary escalation rate (0.50% movement) 36.56 (42.09) 43.70 (47.40)
Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these are not calculated.
Sensitivities as rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not
applicable.
Expected maturity analysis of the gratuity plan in future years
(` in Crore)
Gratuity
Particulars
Between 1-2 years 135.51 149.43
Between 2-3 years 113.15 134.26
Between 3-4 years 100.52 112.14
Over 6 years 1170.88 1138.10
Total 1850.22 1933.60
Expected contributions to gratuity plans for the year ending 31 March 2024 are ` 102.96 crore
The weighted average duration of the gratuity defined benefit plan obligation at the end of the reporting period is 14.60 years (31
March 2022: 14.81 years. )
Risk Exposures
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such, company is exposed to
various risks such as increase in salary, investment risk, discount rate, mortality, disability and withdrawals.

(ii) Post Retirement Medical Benefits (Funded Plan)
The Company has Post-Retirement Medical benefit (PRMB), under which the retired employees and their spouses are provided
medical facilities in the Company hospitals/empanelled hospitals subject to company medical rules.They can also avail treatment
as out-patient subject to a ceiling fixed by the Company. The liability for the same is recognised annually on the basis of actuarial
Annual Review
valuation.
Movement in net defined benefit (asset)/liability on Post retirement Medical Benefit Plan
(` in Crore)
2023 2022 2023 2022 2023 2022
Corporate Profile
Opening balance 2210.85 2255.85 1919.34 1948.72 291.51 307.13
Add/(less) Adjustment on sale of - - - -0.38 - 0.38
stake in subsidiary
Current service cost 40.29 39.26 - - 40.29 39.26
Past service Cost - - - - - -
Interest cost / (income) 154.76 152.27 134.36 152.27 20.40 -
Board's Report
Profit for the Year
Income (OCI):

Demographic assumptions 18.72 - - - 18.72 -
Financial assumptions (96.85) (54.57) - - (96.85) (54.57)
Experience adjustment 109.13 (16.96) (34.48) (16.27) 143.61 (0.69)
Total amount recognised in 31.00 (71.53) (34.48) (16.27) 65.48 (55.26)
other comprehensive income
Others
Contributions paid by the
employer
Benefits paid (187.30) (165.00) (187.30) (165.00) - -
Closing balance 2249.60 2210.85 1831.92 1919.34 417.68 291.51
The plan assets of the Company are managed by Life Insurance Corporation of India through a trust managed by the Company
in terms of an insurance policy taken to fund obligations of the Company
Notice


14)
Withdrawal rate (All ages)
Upto 30 Years 3% 3%
(` in Crore)

Change in cost (0.50% movement) 106.07 (104.21) 101.79 (100.97)
Expected maturity analysis of the Post retirement medical Benefit plan in future years (` in Crore)

Particulars
Between 1-2 years 198.87 140.73
Between 2-3 years 203.84 149.11
Between 3-4 years 210.98 158.65
Between 4-5 years 220.47 169.44
Between 5-6 years 228.18 181.98
Over 6 years 1003.97 1277.55
Total 2249.60 2210.85
Expected contributions to Post retirement medical benefit plan for the year ending 31 March 2024 are ` 49.81 crore.
The weighted average duration of the post retirement medical benefit plan obligation at the end of the reporting period is 12.34
years (31 March 2022: 12.78 years )

Risk Exposure
various risks such as increase in medical cost, investment risk, discount rate, mortality, disability and withdrawals.
Annual Review
(iii) Provident Fund
The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in
permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI.
Accordingly, the Company has obtained report of the actuary. Wherever as per the actuarial valuation certificate liability for likely
interest shortfall arises, the same has been provided in the accounts.
Details of interest shortfall in PF Trust (` in Crore)
For the year ended
Corporate Profile
Particulars
2022-23 2021-22
Excess / (Shortfall) in PF interest liability based on actuarial valuation for the year (14.90) 1.26
Accumulated provision for shortfall in PF interest liability based on actuarial valuation 28.10 13.20
Remeasurement gain/(loss) recognised through other comprehensive income statement (24.20) (1.39)
Interest shortfall / (surplus) accounted through Statement of Profit & Loss (9.30) (2.65)
The Company has PF trusts located at various places covering the employees of the Company and managed separately,the
details of plan assets and obligations are as follows :
Board's Report
(` in Crore)
Defined benefit Fair value of plan Surplus / (Shortfall)
obligation assets
Location As at March, 31
2023 2022 2023 2022 2023 2022

BHEL EPF Trust,Ranipur,Hardwar 1764.84 1664.32 1776.01 1680.03 11.17 15.71
BHEL Employee Provident Fund-Trichy 916.65 935.88 906.77 929.35 (9.88) (6.53)
BHEL Employee Provident Fund Bhopal 1493.84 1394.81 1487.41 1395.61 (6.43) 0.80
BHEL New Delhi Employees Provident Fund Trust 1433.99 1375.80 1433.50 1386.09 (0.49) 10.29
BHEL Employee Provident Fund-Hyderabad 843.58 823.06 871.94 853.42 28.36 30.36
BHEL PPD EPF Trust,Chennai 907.95 854.23 896.65 847.56 (11.30) (6.67)
BHEL Employee Provident Fund-Bengaluru 614.87 620.46 626.89 627.07 12.02 6.61
BHEL (BAP Unit) EPF Trust,Ranipet 332.24 357.05 332.46 359.84 0.22 2.79
BHEL Employee Provident Fund Trust Jhansi 476.99 455.36 491.52 468.66 14.53 13.30
Bharat Heavy Plates & Vesseles Limited Employee 148.74 145.91 186.84 179.46 38.10 33.55
Total 8933.69 8626.88 9009.99 8727.09 76.30 100.21
Notice

Movement in net defined benefit (asset)/liability on Provident Fund
(` in Crore)
BHEL Employees Provident Fund Trust ( Consolidated)
Defined benefit obligation Fair value of plan assets
Particulars
As at March As at March As at March As at March
31, 2023 31, 2022 31, 2023 31, 2022
Opening balance 8626.88 8395.04 8727.09 8465.86
Current service cost 353.89 337.15 - -
Interest cost / (income) 683.04 657.45 683.04 657.45
Total amount recognised in Profit for the Year 1,036.93 994.60 683.04 657.45
Included in Other Comprehensive Income (OCI):
Demographic assumptions
Financial assumptions (1.22) (1.65) - -
Experience adjustment (4.04) 3.54 (29.15) 31.28
Total amount recognised in other comprehensive (5.26) 1.89 (29.15) 31.28
income
Others
Contributions paid by the employer - 353.89 337.15
Employee Contribution 717.79 725.84 717.79 725.84
Benefits paid (1862.90) (1904.95) (1862.90) (1904.95)
Settlements/Transfer-in 420.24 414.46 420.24 414.46
Closing balance 8933.68 8626.88 9009.99 8727.09
Note: Intrest shortfall in respect of PF trusts having deficit have been accounted during the year through statement of profit and
loss account and other comprehensive income statement.
In addition to the above, diminution in PF Trust Investment is also cumulatiively provided totalling to ` 68.47 Cr. based on the
best possible assessment of recovery.
Details of Plan assets (` in Crore)

Govt. of India securities [Quoted] 905.49 1026.09
State Government securities [Quoted] 4451.33 4061.08
Corporate bonds [Quoted] 3017.93 3062.28
Special Deposit [Unquoted] 364.71 384.27
Liquid Fund [Quoted] 17.19 14.25
Short term deposit [Unquoted] 33.46 13.07
Mutual Fund & Equity shares[Quoted] 219.88 166.05
Total 9009.99 8727.09

Annual Review
Expected statutory interest rate on the ledger balance 8.15% 8.10%
Expected short fall in interest earnings on the fund 0.05% 0.05%
14)
Corporate Profile
Upto 30 Years 3.00% 3.00%
From 31 to 44 years 1.00% 2.00%
Above 44 years 1.00% 1.00%
Board's Report
(` in Crore)
BHEL Employees Provident Fund Trust


Expected maturity analysis in future years
(` in Crore)
Provident Fund
Particulars
Within the next 12 months 860.93 916.15
Between 2-5 years 1706.54 1681.13
Between 5-10 years 1396.90 2150.37
Beyond 10 years 4969.31 3879.23
Total 8933.68 8626.88
(iv) Travel claim on retirement- (Settlement Allowance - Unfunded Plan)

The settlement allowance is the expenditure reimbursed to an employee towards travel and shifting of baggage for proceeding
to home town or any place in India where he or she intends to settle after retirement or death in service for self (including
members of his/her family).
Notice

Movement in Settlement Allowance liability
(` in Crore)
Settlement Allowance liability

Particulars
Interest cost / income 0.81 0.69
Included in Profit for the Year : 1.62 1.38
Actuarial loss / (gain) 2.97 2.60
Total amount recognised in TCI for the Year 4.59 3.98
Others
Contributions paid by the employer - -
Benefits paid (2.79) (2.65)
Settlement Allowance
Particulars
Mortality table 100% of IALM (2012-14)
Upto 30 Years 3% 3%
B. Long term Leave Liability (Encashable Leave -EL /Half Pay Leave-HPL) - (Unfunded Plan)
The company provides for earned leave benefit and half pay leave to the employees of the company which accrue half yearly
at 15 days (maximum) and 10 days respectively. The earned leave is encashable while in service subject to fulfilment of certain
conditions. On retirement/superannuation, earned leave & half pay leave put together upto a maximum of 300 days is encashable
subject to company policies & leave encashment rules.The leave liability has been treated as other long term benefits and has
been assessed using projected unit credit actuarial method.

Movement in long term leave liability
(` in Crore)
Annual Review
Particulars
Add/(less) Adjustment of sale of stake in subsidiary - (0.34)
Interest cost (income) 72.15 83.82
Actuarial loss (gain) (61.60) (181.51)
Corporate Profile
Total amount recognised in Profit for the Year 141.46 44.31
Benefits paid 135.00 255.33
Board's Report
Particulars

Mortality table 100% of IALM (2012-14)
Upto 30 Years 3% 3%
C. Pension Fund
The Company has recognised ` 247 cr [PY ` 254 cr] as contribution in respect of pension scheme [ defined contribution plan]
for the FY 2022-23
Notice

Note [41] - Disclosure as per Ind AS 24 - Related Parties
A. List of related parties
(i) BHEL-GE Gas Turbine Services Pvt. Ltd. (BGGTS)
NTPC-BHEL Power Projects Pvt. Ltd. (NBPPL)
Joint venture companies
Raichur Power Corporation Ltd. (RPCL)
Powerplant Performance Improvement Ltd. (PPIL)
Provident fund trusts
Gratuity trust
Post employment benefit plans
PRMB Trust
Pension Trust
Others Central Government controlled entities
The company is a central Public Sector undertaking under the administrative control of Ministry of Heavy Industries and majority
of its stake is held by Government of India. The significant transactions are with other PSUs, State owned utilities, Railways etc.
which are also controlled by Govt. of India directly or indirectly. The transactions with such entities are normal, based on market
driven rates at arms length price.
ii) Other related parties:
a. Key Management Personnel [KMP]
Particulars Designation Position Held [w.e.f /upto]

Functional Directors
Shri [Dr.] Nalin Shinghal Chairman & Managing Director
Shri Subodh Gupta Director (Finance) & CFO
Ms. Renuka Gera Director ( IS & P)
Shri Upinder Singh Matharu Director (Power)
Shri. Jai Prakash Srivastava Director (E, R&D) w.e.f. August 12, 2022
Company Secretary
Shri Rajeev Kalra Company Secretary
(` in Crore)
For the year ended

Particulars
March 31,2023 March 31,2022
Compensation to Key management personnel
- Short term employee benefits 2.85 3.29
- Post employment benefits 0.50 0.38
- Other long term benefits - -
- Termination benefits - -
- Share based payment - -
Total 3.35 3.67

b. Government Director/Independent Director
Name Government/Independent Held [w.e.f /upto]

Shri Shashank Priya Government Director upto 14.02.2023
Annual Review
Shri Vijay Mittal Government Director
Smt. Arti Bhatnagar Government Director w.e.f. 14.02.2023
Shri Raj Kamal Bindal Independent Director upto 27.01.2023
Shri Manish Kapoor Independent Director upto 27.01.2023
Shri (Dr.) Raj K. Agarwal Independent Director upto 12.09.2022
Shri (Dr.) K. Sivaprasad Independent Director
Smt.(Dr.) Lekhasri Samantsinghar Independent Director
Corporate Profile
Shri Aditya Prasad Sahu Independent Director upto 30.05.2022
(` in Crore)
For the year ended

Particulars
March 31, 2023 March 31, 2022
Sitting Fees -- Independent Directors 0.26 0.25
B Transactions with Post Employment Benefit Plans managed through separate trust (` in Crore)
Board's Report
Contribution by employer
Name of the Trust Post Employment benefit plan For the year ended March 31
2023 2022
PRMB Trust Post Retirement medical - -
scheme

Gratuity Trust Gratuity - -
Employees Superannuation Fund Pension Fund 246.95 115.00
BHEL EPF Trust,Ranipur,Hardwar Provident Fund 57.81 55.13
BHEL Employee Provident Fund-Trichy Provident Fund 56.00 53.43
BHEL Employee Provident Fund Bhopal Provident Fund 56.25 53.03
BHEL New Delhi Employees Provident Fund Trust Provident Fund 44.01 41.46
BHEL Employee Provident Fund-Hyderabad Provident Fund 42.45 40.56
BHEL PPD EPF Trust,Chennai Provident Fund 30.67 28.21
BHEL Employee Provident Fund-Bengaluru Provident Fund 28.60 27.75
BHEL (BAP Unit) EPF Trust,Ranipet Provident Fund 17.83 18.58
BHEL Employee Provident Fund Trust Jhansi Provident Fund 13.77 13.19
Bharat Heavy Plates & Vesseles Limited Employee Provident Fund 6.50 5.81
Notice

C) Details of Transactions with Joint Ventures and Balances Consolidated
(` in Crore)
For the year ended

Particulars
March 31,2023 March 31,2022
Sale of Goods & Services
BGGTS 239.24 281.48
RPCL 9.42 3.27
NBPPL 2.21 3.83
Dividend income
BGGTS 26.18 30.35
Royalty income
BGGTS 1.85 1.80
Purchase of Goods and Services
BGGTS 0.87 1.04
NBPPL - 1.52
Amounts due to BHEL at the end of the year
BGGTS 112.07 143.55
RPCL 636.90 550.90
NBPPL 225.17 263.89
Amounts due from BHEL (incl. advances) at the end of the year
BGGTS 0.44 0.11
RPCL 20.90 20.95
NBPPL 23.58 67.95
Provision for Doubtful debts & advances
BGGTS 10.27 -
RPCL 20.81 20.17
NBPPL 190.15 188.70
Note: refer note[5a] for provision for dimunition in value of investments
Note [42] - Disclosure [Movement in provisions] - Ind AS - 37

(` in Crore)
As at
a. Liquidated Damages
March 31,2023 March 31,2022
Opening Balance 8559.20 9511.80
Closing Balance 8234.67 8559.20
Liquidated damages are provided in line with the Accounting Policy of the Company and the same is dealt suitably in the accounts
on settlement or otherwise. Contingent liability relating to liquidated damages is shown in Para A(h) of Note 33.

(` in Crore)
As at
b. Contractual Obligation
March 31,2023 March 31,2022
Annual Review
Opening Balance
Add: Borrowing Cost 160.11 155.78
Less: PV Adjustment 94.65 107.45
Corporate Profile
Add/(Less): Change in estimate and rates (0.71) (18.11)
Closing Balance
Board's Report
The provision for contractual obligation is made considering the effect of time value of money in line with significant Accounting
Policy No. 10 to meet the warranty obligations as per the terms and conditions of the contract. The same is retained till the
completion of the warranty obligations of the contract. The actual expenses on warranty obligation may vary from contract
to contract and on year to year depending upon the terms and conditions of the respective contract.Contractual obligation,
pertaining to dues from projects fully provided for, disclosed in Non Current Allowances for B&D Debts in Note 6 and 9.
Note [43] - Disclosure - Revenue from Contracts with Customers - Ind AS-115

a. Movement in impairment provisions
(` in Crore)
2022-23 2021-22
Particulars Trade Contract Trade Contract
receivables assets receivables assets
Opening balance 4314.79 1190.54 4890.48 1,142.25
Add: Additions 279.02 271.45 344.18 146.78
Less: Write off 57.46 - 216.42 -
Less: Reversal* 213.90 83.34 703.45 98.49
Closing balance 4322.46 1378.65 4314.79 1190.54
*incl. adjustment on sale of stake in subsidiary ` (3.36 cr)
Notice

b. Disaggregation of revenue from contracts with customers
(` in Crore)
Power Industry
Particulars Within India Outside Within India Outside Total
India India
2022-23
2021-22
(` in Crore)
2022-23 2021-22
Particulars
Power Industry Power Industry
CPSUs 5581.63 1639.38 3807.92 1405.00
TSGENCO 1874.88 - 2644.40 -
TANGEDCO 3112.02 - 1669.85 -
BIFPCL [Bangladesh] 831.59 - 1381.44 -
c. Contract Balances (net of provisions)

(` in Crore)

Contract assets (incl. unbilled revenue) 29740.03 26939.87
Contract liabilities 5635.01 6047.76
d. Contract revenue recognised

(` in Crore)

Revenue recognised against contract liabilities (adjustment of customer 3024.72 3592.89
advances and valuation adjustment during the year)
Revenue recognised against performance obligation satisfied in previous 892.15 94.41
year(impact due to change in contract revenue)
Construction of power projects is a long cycle business, where the contracts received by the company are either EPC contracts
(Engineering, Procurement & Construction) or BTG Packages (i.e. Boiler, Turbine and Generator packages). Power projects are
long gestation period projects with normal execution period of contract ranging between 3 to 5 years. BHEL scope of services
includes supply of equipment, erection, commissioning, synchronizing the plant to the grid, completing the trial operation and
providing the guaranteed parameters.

Although there are several components to the overall scope, such projects are generally considered one performance obligation.
The control transfers simultaneously over the execution period as the entity performs rather than at discrete points in time and
hence revenue is recognized over the period of time based on measure of progress (input cost method)
Annual Review
Note [44] - Disclosure pursuant to Ind AS-107 [Financial Instruments - Accounting
Classifications and Fair value measurements]
a. The Fair value of cash and cash equivalents, bank balances, loans, trade receivables, trade payables, security deposit and
others reasonably approximates their carrying amount. Trade receivables are evaluated after taking into consideration for
Expected Credit Losses. Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique.
Fair value hierarchy
Corporate Profile
The fair value of financial instruments have been classified in following categories depending on the inputs used in the
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.,
as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(` in Crore)
Board's Report
Level 3 Heirarchy
Financial assets and liabilities measured at fair value- recurring fair value
measurements As at March As at March 31,2022
31,2023
Financial assets:
Investment in unquoted equity instruments 3.13 3.29

b. Valuation Techniques used to determine fair value
Fair value of unquoted equity instruments is determined using Level 3 inputs which include inputs from the financial statements
of the investee Company based on Net asset value per share.
Reconciliation of fair value measurement of unquoted equity shares classified as FVTPL assets
(` in Crore)
As at March 31, 2022 3.29

Changes in fair value (0.16)
As at March 31, 2023 3.13
Financial Risk Management
Objectives and Policies

The company's activities are exposed to different financial risks arising out of natural business exposures to any company operating
in the sector. The management of financial risk has always been an integral part of the company’s business strategies and policies.
The company reviews and aligns its policies and guidelines from time to time to address the financial risks in line with the needs
and expectations of its various stakeholders. Exposure risk from the use of financial instruments can be categorized as under:
a. Credit risk
Notice
b. Liquidity risk
c. Market risk

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies
and processes for measuring and managing risk, and management of Company's capital. Further quantitative disclosures are
included throughout these financial statements.
Risk management framework

BHEL has in place a Board approved Risk Management Charter & Policy which provides overall framework for Risk Management
in the company. The objective of the charter is to ensure that the risks are being properly identified, assessed and effectively
managed by adopting suitable risk mitigation measures. The company has 3-layer risk management framework. At the first
level, the Board Level Risk Management Committee (BLRMC) of the company is assigned with responsibility of reviewing the
company’s Risk Governance structure, Risk Assessment & Risk Management framework, Guidelines, Policies and Processes
thereof. Risk Management Steering Committee (RMSC) at the second level is responsible for adopting & implementing the risk
management framework and leading the risk management initiative across the company. Chief Risk Officer (CRO) being the
convener of BLRMC & RMSC is responsible for periodic reporting on risk management to Board/ BLRMC. Key risks being faced
by the company are analysed starting from Unit level for their respective areas to prepare risk mitigation plans and to ensure
implementation.
a) Management of Credit Risk

Credit risk is considered as an integral part of risk reward balance of doing business. BHEL is involved in setting up of power
projects pertaining to Government sector (State utilities, PSU's, Railways and other govt. departments etc.) and private sectors
in India and abroad. The projects are generally funded by Financial Institutions/ banks or payments are covered by Letter of
Credit (LC). The project duration ranges from 3 to 5 years and payments are generally realised in stages as per the terms of the
contract including advance, progress payments, milestone (including intermediate) payments and also retentions which are
released on completion of such projects. Since majority customers' profile pertains to Government sector, constituting 80% of
total receivables coupled with the fact that the company itself is a CPSE, credit risk is relatively low. In respect of private sector
customers , the payment terms are mainly through LC. The company has well established review mechanism for receivables
at various levels within organisation to ensure proper attention and focus for realisation in line with the company policies,
procedures and guidelines.The company uses expected credit loss model to assess the impairment loss or gain and the disclosure
of the same is made elsewhere. Further, adequate provisions are maintained to address any eventuality.
(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was:
(` in Crore)

Financial assets for which loss allowance is measured using 12 months
Expected Credit Losses (ECL)
Cash and cash equivalents 1560.52 732.62
Other bank balances 5082.06 6421.07
Other financial assets 362.19 298.29
Financial assets for which loss allowance is measured using Life time
Expected Credit Losses (ECL) including impairment loss
Trade receivables 6543.89 6228.59
Percentage of total receivable

Concentration of credit risk- Geographical
Within India 94% 93%
Outside India 6% 7%
Total 100% 100%

The company’s exposure to credit risk for trade receivables,contract assets and other receivables by type of counterparty are as
follows:
Percentage of total trade receivables

Note
Annual Review
Central Public Sector Undertakings incl Railways and Govt Deptt 39% 37%
State Electricity Boards 41% 42%
Private Customers and others 14% 14%
Exports 6% 7%
Total 100% 100%
(ii) Impairment losses
Corporate Profile
(a) Financial assets for which loss allowance is measured using 12 month expected credit losses
The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of
default is very low.
The movement in the allowance for impairment in respect of loans during the year was as follows:
(` in Crore)
Board's Report
Impairment loss recognised / write off/ withdrawal 0.35 (17.39)
(b) Reconciliation of impairment loss provisions

The movement in the allowance for impairment in respect of trade receivables and contract assets during the year was as follows:

(` in Crore)

Impairment loss recognised 550.47 490.97
Amounts written off/ withdrawal (incl adj) (354.69) (1018.37)
The company makes investments out of surplus funds as per policy of the company duly approved by the Board and in line with
the DPE guidelines. Credit risk on cash and cash equivalents and term deposits is very limited as the company generally invests in
deposits with financially strong banks and financial institutions with high credit ratings assigned by credit rating agencies.
(b) Management of Liquidity risk Additional Information
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including term deposits and the availability
of Funding through an adequate amount of credit facilities to meet obligations as and when due. Robust cash management
system and regular monitoring of cash flows enables management to plan and maintain adequate sources to finance its funds
requirement throughout the year. Besides adequate cash and bank balances, company enjoys credit facilities. The company is
able to meet all its fund requirements from internal resources i.e. the funds generated from operations and also through short-
term borrowings for better treasury management operations.
Notice

The following are the contractual maturities of non-derivative financial liabilities, based on contractual cash flows:
(` in Crore)
Financial Liabilities As at March 31,2023 As at March 31,2022

Within exceeding Within exceeding
Non-derivative financial liabilities
1 year 1 year 1 year 1 year
Trade payables 9895.83 2194.03 7749.59 2131.93
Deposits from contractors and others 416.66 247.10 431.36 206.45
Finance Lease Obligation 34.76 33.75 49.81 35.12
Other Payables/liabilities
Employee dues 384.33 214.05
Other dues 364.44 397.85
Capex dues 111.50 8.60 80.83 8.65
Short term borrowings 5385.00 4745.00
Total 16592.52 2483.48 13668.49 2382.15
c Management of Market risk

The Company is exposed to certain currency,commodity, interest rate risks arising from its operations. The company has foreign
exchange risk management policy to cover the foreign exchange risks.To insulate the company against major commodity price
fluctuation,framework agreements including price pass through claims are being entered regularly with supply chain partners
including suppliers and customers. Surplus funds generated from operation are kept invested in short term deposits with PSU
Banks or large sized private banks only and in debt based schemes of public sector mutual funds , thereby minimizing any chance
of risk.

Foreign currency risk exposure -: The company's exposure to foreign currency risk at the end of reporting period, are as
follows:
(i) The derivative instruments that are hedged and outstanding as on 31.03.2023 is NIL (previous year Nil)
Annual Review
(ii) The foreign currency exposures that are not hedged by a derivative instrument or otherwise are as under:
FC ' in Million
(` in Crore)
As at As at As at
Particulars
March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
Assets Euro Equivalent INR Euro Equivalent INR Others INR Others (INR)
Trade receivable 55.50 496.43 61.72 520.18 3.44 3.16
Corporate Profile
Contract assets 332.04 2959.08 327.57 2753.33 11.92 35.27
Other assets 1.24 10.29 0.93 7.56 75.49 21.98
Sub Total (A) 388.78 3465.80 390.22 3281.07 90.84 60.41

Liabilities
Advances from customer 36.15 240.84 36.42 242.50 22.65 39.47
Trade payables and 34.70 315.32 101.40 869.73 579.03 131.99
Board's Report
others
Sub Total (B) 70.85 556.15 137.82 1112.23 601.68 171.46
Assets ( Net of Liabilities) 317.93 2909.64 252.40 2,168.84 (510.83) (111.05)
Assets USD Equivalent INR USD Equivalent INR

Trade receivable 70.72 579.07 64.88 489.70

Contract assets 322.62 2640.15 333.77 2517.59
Other assets 0.36 2.41 6.08 45.30
Sub Total (A) 393.70 3221.63 404.73 3052.59
Liabilities
Advances from customer 58.00 326.40 78.92 457.24
Trade payables and 97.39 806.03 161.30 1231.18
others
Short term borrowings - - - -
Sub Total (B) 155.40 1132.43 240.22 1,688.42
Assets ( Net of Liabilities) 238.31 2,089.21 164.51 1,364.17
The above figures are net of provisions, if any

Notice

The impact of strengthening/weakening of the Indian Rupee vis a vis USD,EURO and others as at year end on profit or loss
is as shown below. This analysis is based on foreign currency exchange rate variances that the company considered to be
reasonably possible at the end of the reporting period. The analysis is performed on the same basis for previous year, albeit that
the reasonably possible foreign exchange rate variances were different, as indicated below.
(` in Crore)
As at As at
Particulars
March 31, 2023 March 31, 2022
Effect on Profit/(loss) Strengthening Weakening Strengthening Weakening
1% movement
Euro 29.10 (29.10) 21.69 (21.69)
USD 20.89 (20.89) 13.64 (13.64)
Others (5.11) 5.11 (1.11) 1.11
Capital Management
The company's objective, while managing capital is to continue business as a going concern, safeguard,preserve and enhance its
capital to provide maximum return to shareholders, benefits to other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital. The Board of Directors also monitors the level of dividends to equity shareholders. The Company
monitors capital, using a medium term view and long term view, on the basis of a number of financial ratios generally used by
industry as well as by the rating agencies. The Company is not subject to externally imposed capital requirements. The Company’s
capital structure is managed against the various financial ratios as required to maintain highest credit ratings.
Note [45] - Consolidated Operating Segment

The Segments have been identified as 'Power' and 'Industry', based on the orders booked by the respective business sectors.
These segments are driven by the three business sectors i.e. Power Sector, Industry sector, International Operations.
The Power segment comprises mainly thermal, gas, hydro and nuclear power plant businesses, related spares & services
business apart from new businesses of coal to chemicals, emission control equipment and spares for Non-BHEL sets.
The Industry segment caters to major equipment supplies and EPC works for a variety of sectors including transportation,
transmission, defence & aerospace, captive power, renewables, downstream oil & gas, energy storage, and electric mobility,
among others.
The order booked by International operation group is taken to Power or Industry as the case may be.

The Company's Committee of functional Directors has been identified as Chief Operating Decision maker (CODM).
(` in Crore)
For the year ended 31.3.2023 For the year ended 31.3.2022
Particulars
Annual Review
Power Industry Total Power Industry Total
I. SEGMENT REVENUE
Operating Revenue-External 17498.98 4637.32 22136.30 15361.25 4792.13 20153.38
II. SEGMENT RESULTS
a. Segment Results 1400.32 432.53 1832.85 1949.24 (41.42) 1907.82
b. Unallocated expenses (Net of income) 831.98 1081.40
c. Profit before finance cost & Incometax (a) 1000.87 826.42
Corporate Profile
- (b )
d. Finance cost (Includes unwinding of 521.43 355.96
Interest)
e. Net Profit before Income Tax (c) - (d) 479.44 470.46
f. Income Tax 2.05 25.75
g. Net Profit/(loss) after Income Tax (e)-(f) 477.39 444.71
III ASSETS & LIABILITIES
Board's Report
a. Segment Assets 40666.48 8234.70 48901.18 37196.23 8194.28 45390.51
b. Common Assets 10468.61 10853.25
c. Total Assets 59369.79 56243.76
d. Segment Liabilities 22366.53 5140.86 27507.39 20096.06 4754.42 24850.48
e. Common Liabilities 5034.36 4886.68
f. Total Liabilities 32541.75 29737.16

IV OTHER INFORMATION
a. Capital Expenditure 121.75 80.26 140.56 55.40
b. Depreciation & Amortization 167.99 63.96 209.45 71.29
c. Non Cash Expenses (other than depreciation (507.61) (296.77) (1241.57) (62.11)
& amortization)
Within Outside Total Within Outside Total

GEOGRAPHICAL SEGMENTS
India India India India
1 Net Sales / Revenue from Operations 21061.08 1075.22 22136.30 18635.65 1517.73 20153.38
2 Non- Current Assets (PPE & Intangible 2826.69 3.14 2829.83 2812.21 17.23 2829.44
Assets)
3 Capital Expenditure 261.79 0.15 261.94 225.32 5.77 231.09
Major Customer- Details of Revenue from Single Customer exceeding 10% of total revenue of the BHEL
Particulars Power Industry Total Power Industry Total

CPSUs 5581.63 1639.38 7221.01 3807.92 1405.00 5212.92
Notice
TANGEDCO 3112.02 - 3112.02 1,669.85 - 1669.85

TSGENCO 1874.88 - 1874.88 2644.40 - 2644.40

Note [ 46 ] - ADDITIONAL INFORMATION
(` in Crore)
Net Assets, i.e., total Share in profit or loss Share in other Share in total
assets minus total Comprehensive Income Comprehensive Income
Liabilities
Name of the entity in the Financial
Group Year As % of Amount As % of Amount As % of Amount As % of Total Amount
Consolidated Consolidated Total Other Comprehensive
Net results Profit or loss Comprehensive Income
Income
2022-23 99.13 26595.74 88.27 421.37 103.54 (17.27) 87.71 404.10
BHEL
2021-22 99.24 26304.74 89.27 396.98 99.96 76.87 90.84 473.85
Subsidiary
2022-23 - - - - - - - -
BHEL Electrical Machines
Limited (BHEL EML) 2021-22 - - (0.31) (1.37) - - (0.26) (1.37)
2022-23 - - - - - - - -
Non-controlling Interests in
BHEL EML 2021-22 - - (0.30) (1.32) 0.00 0.00 0.25 (1.32)
Joint Ventures(investment as per the equity method)-
2022-23 0.87 232.29 11.73 56.02 (3.54) 0.59 12.29 56.61

BHEL-GE Gas Turbine
Services Private Limited 2021-22 0.76 201.86 11.34 50.42 (0.18) 0.03 9.67 50.45
2022-23 - - - - - - - -
NTPC-BHEL Power Projects
Private Limited 2021-22 - - - - - - - -
2022-23 - - - - - - - -
Raichur Power Corporation
limited 2021-22 - - - - - - - -
2022-23 100.00 26828.03 100.00 477.39 100.00 (16.68) 100.00 460.71

Total
2021-22 100.00 26506.60 100.00 444.71 100.00 76.90 100.00 521.61
Note [47]
Assets and Liabilities are classified between Current and Non-current considering 12 months period as operating Cycle.
Note [48]
The Company has no transactions with companies struck off under section 248 of the Companies Act,2013 or section 560 of
the Companies Act,1956.
Note [49]
The Company is complying with the number of layers prescribed under clause(87) of section 2 of the Act read with
Companies(restriction on number of layers ) Rules , 2017.

Note [50]
No Scheme of Arrangements has been approved by the the Competent Authority in terms of sections 230 to 237 of the Companies
Act,2013.
Annual Review
Note [51]
The Company has no transactions that has been surrendered or disclosed as income during the year in the tax assessments under
the Income Tax Act,1961 which is unrecorded in the books of accounts.
Note [52]
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
Corporate Profile
Note [53]
Prior period errors which are material are corrected retrospectively by restating the comparative amount for the prior periods
presented in which such error occurred. For the error occurred before the earliest period presented, the opening balances of
assets, liabilities and equity for the earliest period presented are restated.
Note [54]
Figures have been rounded off nearest to ` in crore with two decimal.
Board's Report
Note [55]
Previous year's figures have been regrouped/ rearranged wherever considered necessary.
Note [56]
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian

Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting
Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April
1, 2023, as below:
Ind AS 1 – Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting
policies. Accounting policy information, together with other information, is material when it can reasonably be expected to
influence decisions of primary users of general purpose financial statements. The Company does not expect the amendment
to have any significant impact in its financial statements.
Ind AS 12 – Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning
obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company does not expect the amendment to have any significant impact in its
Notice

Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities
develop accounting estimates if accounting policies require items in financial statements to be measured in a way that
involves measurement uncertainty.The Company does not expect the amendment to have any significant impact in its
Note [57]
The Board of Directors has authorised to issue the Financial Statements 2022-23 in its meeting held on May 26 , 2023

DIN: 09703643

FRN - 315104E FRN - 008567C FRN - 000709C/C400277

M No. 053714 M. No. 404531 M. No. 406044
Place: New Delhi

Date: May 26, 2023

Annual Review
For Stakeholder
Financial Performance Trend................................................ 346
Corporate Profile
Product Profile......................................................................... 349
Glossary..................................................................................... 358
Glossary (Financial Terms)..................................................... 359
Board's Report
Notice

Financial Performance Trend
Sl.
Particulars 2022-23 2021-22 2020-21 2019-20 2018-19
No.
Order Book (Excluding Taxes)
Order Received ` in crore 23548 20379 11470 20200 19995
Orders Outstanding ` in crore 91336 90084 89813 95687 96082
A. Operating Results
I Total Income
Revenue ` in crore 22136 20153 16296 20491 29423
Other operational income ` in crore 1229 1058 1013 969 1000
Revenue from operations (a) ` in crore 23365 21211 17308 21459 30423
Other income (b) ` in crore 515 368 370 581 678
Total (I= a+b) ` in crore 23880 21579 17678 22040 31101
II Operating expenses
Material consumption, Bought Out ` in crore 15954 13997 11071 14727 18837
items,Civil,Erection and engg. expenses
Consumption of stores & spares ` in crore 404 271 289 353 412
Changes in inventories of FG , WIP & scrap ` in crore (57) 526 511 (1042) (991)
Employee benefits expenses ` in crore 5701 5517 5372 5427 5502
Power & Fuel ` in crore 488 415 319 459 497
Other expenses of Mfg, Admn. & S&D ` in crore 1466 1355 1480 1970 2263
Exchange variation (gain) / loss (net) ` in crore (460) (82) (66) (435) (67)
Provisions ` in crore (847) (1526) 1467 233 1837
Depreciation & amortisation expenses ` in crore 260 314 473 503 475
Finance costs ` in crore 521 355 373 507 287
Total (II) ` in crore 23430 21142 21290 22702 29053
III Operating Profit/(loss) (a-II) ` in crore (65) 69 (3982) (1243) 1370
IV Profit / (Loss) before tax (I-II) ` in crore 450 437 (3612) (662) 2048
Tax expense (Net) ` in crore 2 27 (894) 811 839
V Profit /(Loss) after tax ` in crore 448 410 (2717) (1473) 1209
Other Comprehensive Income ` in crore (17) 77 20 (274) (120)
VI Total comprehensive income ` in crore 430 487 (2697) (1747) 1089
Dividend payout ` in crore 139 139 - - 696
Dividend distribution tax ` in crore - - - - 143
EBIT ` in crore 971 792 (3239) (155) 2335
EBITDA ` in crore 1231 1106 (2765) 348 2810
Cash Flow:
From Operating Activities ` in crore (742) 660 560 (2892) (3856)
From Investing Activities ` in crore 1480 (1125) (43) 1877 1915
From Financing Activities ` in crore 89 (330) (393) 1622 (32)

Sl.
Particulars 2022-23 2021-22 2020-21 2019-20 2018-19
No.
B. Financial Position (Assets, Equity &
Liabilities)
Annual Review
VII Assets
Property, plant & equipment and intangible ` in crore 2476 2398 2488 2814 2967
assets
Capital WIP and intangible assets under ` in crore 354 431 420 314 235
development
Non-current investments ` in crore 670 670 670 670 669
Other non current assets ` in crore 456 365 365 321 362
Corporate Profile
Trade Receivables (Net) ` in crore 6544 6229 7213 11641 15796
Contract Assets (Net) ` in crore 29740 26940 24079 23794 22819
Cash & Bank Balances ` in crore 6643 7154 6701 6419 7503
Inventory ` in crore 6756 6560 7191 8905 7797
Deferred tax assets(Net) ` in crore 3423 3530 3660 2756 3497
Other Current assets ` in crore 2744 2432 2913 2601 2784
Total Assets ` in crore 59804 56708 55701 60236 64431
Board's Report
VIII Equity
Equity share capital ` in crore 696 696 696 696 696
Other equity ` in crore 26566 26275 25788 28485 30735
Total Equity ` in crore 27262 26971 26484 29181 31432
IX Liabilities
Borrowings ` in crore 5385 4745 4834 4933 2432
Trade Payables ` in crore 12090 9882 8559 9900 12078
Contract Liablities ` in crore 5635 6048 6864 6718 6839
Other Non current liabilities ` in crore 310 269 295 266 225
Non current provisions ` in crore 4101 3771 3913 4212 5463
Other Current liabilities ` in crore 2225 1956 1589 1943 3477
Current provisions ` in crore 2797 3067 3164 3082 2486
Total liabilities ` in crore 32542 29737 29217 31054 32999
X Total Equity & Liabilities (VIII+IX) ` in crore 59804 56708 55701 60236 64431
Equity shares (Face Value of ` 2 each) Nos. 348 348 348 348 348
Market Capitalisation as at year end ` in crore 24420 17184 16975 7243 26081
Net worth ` in crore 27262 26971 26484 29181 31432
Net worth (excl. OCI & Capital Reserve) ` in crore 27563 27254 26844 29561 31538
Capital employed ` in crore 23486 23010 22405 26111 27699
XI Human Resources Nos 29536 30758 32131 33752 35471
Executives Nos 10187 10280 9742 10075 10400
Notice
Non Executives Nos 19349 20478 22389 23677 25071

Sl.
Particulars 2022-23 2021-22 2020-21 2019-20 2018-19
No.
XII Financial Performance Ratios
1 Return on Net worth % 1.63 1.52 (9.63) (4.82) 3.77
2 Return on capital Employed % 4.13 3.44 (14.45) (0.59) 8.43
3 EBITDA margin % 5.16 5.12 (15.64) 1.58 9.04
4 Operating Profit margin % (0.28) 0.33 (23.01) (5.79) 4.50
5 Revenue per employee ` in lakhs 75 66 51 61 83
6 Revenue per rupee of employee benefit ` 3.88 3.65 3.03 3.78 5.35
expenses
XIII Balance Sheet Ratios
1 Current ratio Ratio 1.29 1.30 1.39 1.45 1.67
2 % liquidation of current year net billing % 86 86 82 73 59
3 Trade receivable (no. of days) Days 102 107 152 198 190
4 Inventory (no. of days) Days 111 119 161 159 97
5 Assets Turnover Times 0.40 0.38 0.32 0.37 0.48
XIV Per Share data
1 Earning per share (`) 1.29 1.18 (7.80) (4.23) 3.33
2 Net worth per share (`) 78.29 77.46 76.06 83.80 90.27
3 Market Price per share (BSE) as at year end (`) 70.13 49.35 48.75 20.80 74.90
4 Market Price to Book Value Ratio 0.90 0.64 0.64 0.25 0.83
XV Segment Revenue
Power Segment ` in crore 17499 15361 11386 14960 23474
Industry Segment ` in crore 4637 4792 4910 5530 5949
Total ` in crore 22136 20153 16296 20491 29423
Segment Share
Power Segment % 79 76 70 73 80
Industry Segment % 21 24 30 27 20
I Previous year's figures have been regrouped / rearranged, wherever considered necessary.
II Figures in () represent negative values.
III Dividend payout is interim dividend and proposed final dividend for the year.
IV Equity share capital at the end of FY 2018-19 is post buyback in January 2019.
Notes:
1 EBIT = PBT+Finance cost
2 EBITDA = EBIT+Depreciation & Amortisation
3 Capital employed=Net Worth-capital WIP & Intangible Assets under development -Deferred tax
4 Return on Net worth = (PAT/Average Net Worth excld. OCI & Capital reserve)*100
5 Return on capital Employed = EBIT/Capital Employed*100
6 EBITDA Margin % = EBITDA/Total Income *100
7 Operating Profit Margin = Operating profit/Revenue from operations *100
8 Current ratio = Current Assets/Current liabilities
9 Trade receivable (no. of days) = Trade receivable *365/Revenue from operations.
10 Inventory (no. of days) = Inventory *365/Revenue
11 Assets Turnover = Total Revenue/Total Assets

BHEL's Product and • Capability to burn a variety of fuels (both gaseous
and liquid) along with mixed firing in different
Service Profile includes combinations of fuels
• Low exhaust emission levels upto 15ppm of NOx
design, manufacturing and
Annual Review
with Dry Low NOx (DLN) combustors & noise
reduction.
installation in the following
major segments: Hydro Power Plants
• Capability for engineering and manufacturing of custom
Thermal Power Plants made conventional Hydro Turbines of Kaplan types up
to 100 MW, Francis and Pelton types up to 400 MW.
• Complete EPC solutions including state-of-the-art
Corporate Profile
• Reversible Pump-Turbines for Pump Storage Plants up
emission control equipment for Thermal Power Plants
to 250 MW
• Steam Generators, Steam Turbines, Turbo Generators
• High capacity pumps for Lift Irrigation Schemes (LIS) up
(TG) along with regenerative feed cycle upto 1000 MW
to 200 MW
unit rating, including 660/700/800 MW unit rating sets
based on supercritical technology and upto 600 MW • Butterfly, Spherical Valves and Auxiliaries for Hydro
unit rating sets based on subcritical technology Stations
• Water and air cooled Condensers, Condensate • Microprocessor based Digital Governing System for all
Extraction Pumps, Boiler Feed Pumps, Duplex Heaters, types of Hydro Power Plants
Board's Report
Valves and Heat Exchangers – meeting requirement of • Plant Layout & Mechanical Balance of Plant (BOP)
TG Sets upto 1000 MW • Capability for engineering, manufacturing, installation
• Combined cycle plants upto 350 MW with higher plant and commissioning of custom-made Salient Pole
efficiencies Vertical Synchronous Hydro Generator up to 400 MW.
• Residual Life Assessment (RLA) studies and Life Extension • LIS motor up to 200 MW
of old thermal power plants, plant performance • Fixed Speed Generator-Motors for Pump Storage Plants
improvement through renovation, modernization and up to 300 MW
uprating of power plant equipment including solution
• Bulb turbines with matching generators up to 10 MW and
towards flexible operations
horizontal generator up to 20 MW along with matching
Static Excitation System/ Brushless Excitation Systems
Nuclear Power Plants • Mini, Micro and Small Hydro Power Plants up to 25 MW
rating
• Reactor side components like Steam Generators,
Reactor Headers, End Shields, special purpose Heat • Renovation, Modernization and uprating of Hydro
Exchangers, Pressure Vessels, Motors etc. for Nuclear Power Plants
Power plants • Balance of Plant (BOP) & System Integration
• TG island equipment of PHWRs (Pressurized Heavy
Water Reactors), FBRs (Fast Breeder Reactors) and
AHWRs (Advanced Heavy Water Reactors) including
Solar Power System
‘EPC’ solutions covering Steam Turbine, Turbo • EPC solutions of Solar PV Power Plants:
Generators, MSRs (Moisture Separator Reheaters), other • Grid Interactive systems with & without BESS
heat exchangers and pumps (Battery Energy Storage System)
• Floating Solar Power Plants
Gas-Based Power Plants • Standalone systems
• Gas turbines and matching generators ranging from 25 • Roof Top systems
Notice
MW to 299 MW (ISO) rating with following features: • Hybrid systems

• Gas turbine based co-generation and combined- • Canal Top Systems
cycle systems for industry and utility applications • Solar based water pumping systems

Desalination and Water Treatment • Electrics & Automation Systems for High Current
Rectifiers of Smelters and Processing Mills for Aluminum
Plants Plants
• Complete Water Management Solutions for Power • Automated Storage & Retrieval Systems (ASRS)
Plants, Industrial applications and Municipal applications
with different treatment technologies:
• Pre Treatment Plants (PT) Detailed Product Profile is as
• Desalination Plants follows:
• Demineralization Plants (DM)
• Membrane Based Treatment Systems Steam Generators
• Electro Deionization plants • Steam generators for utilities, ranging from 30 to 1000
• Effluent Treatment Plants (ETP) MW capacity, using coal, lignite, oil, natural gas or a
combination of these fuels; capability to manufacture
• Sewage Treatment Plants (STP)
boilers with ultra-supercritical parameters upto 1000
• Zero Liquid Discharge (ZLD) System MW unit size
• Cooling Water Treatment Plants • Steam generators for utilities, with Advanced Ultra
• Tertiary Treatment Plants Supercritical (AUSC) parameters of 310 ata and 710°C /
720 °C.
Systems and Services • Circulating Fluidized Bed Combustion (CFBC) steam

generators, with supercritical parameters upto 660 MW
• Power Generation Systems unit size for utilities
• Turnkey power stations/ EPC contracts • Fuel Flexible boilers capable of all combination of
• Combined-cycle power plants blending / co-firing diverse qualities of imported/ Indian
• Cogeneration systems coals, blending of lignite, petcoke, etc.
• Captive power plants • Capability for manufacturing and supply of Steam
Generators and Reactor Headers for Nuclear Power
• Modernization and renovation of power stations
Plant as per ASME Sec.-III NB Class-1 requirements
and RLA studies.
• Steam generators for industrial applications of the
• Flexible Operation solution of fossil fuel power
following types ranging from 40 T/hr to 450T/Hr
plants
capacity, using coal, natural gas, industrial gases,
• Software packages including simulators for utilities biomass, lignite, oil, petcoke, bagasse or a combination
• Erection, commissioning, support services, spares thereof
management and consultancy services for all the • Pulverized coal / lignite fired boilers
above systems
• Stoker fired boilers
• Bubbling Fluidized Bed Combustion (BFBC) boilers
Industrial Systems • Circulating Fluidized Bed Combustion (CFBC)
• Coal Handling Plant and Ash Handling Plant including boilers
Civil & Structural, Mechanical, Electrical works and • Heat-Recovery Steam Generators (HRSG)
Automation systems
• Chemical recovery boilers for paper industry,
• Mine Winder systems ranging from capacity of 100 to 1000 T/Day of dry
• Electrics, Drives, Controls & Automation Systems solids
for Processing & Compacting of Raw Materials, Iron • Expertise and capability in implementing the Biomass
Making, Primary & Secondary Steel Making, Casters & co-firing with coal in boilers
steel finishing like mills & Process Lines for both long
• Complete solutions for flexible operation of boilers
products & flat products
• Raw Material Handling System including Civil & Structural,
Mechanical, Electrical and Automation systems for Steel Steam Generator Auxiliaries
and other industries • Air Preheaters
• Tubular Air Preheaters

• Rotary regenerative Air-Preheaters (different types • Absorber – DCFS Technology (Double Contact
like Bisector, Tri Sector and Quad Sector) Flow Scrubber)
• Particulate Emission Control • Wet Limestone FGD – Single & Twin Tower Absorber
• Electrostatic precipitators with outlet emission as • Seawater FGD – Grid Tower Absorber
Annual Review
low as 15 mg/Nm3 (efficiency up to 99.97%) • Absorber with & without Gas to Gas Heater
• Bag Filters for utility and industrial applications • FGD with SO2 efficiency of 99.9%
• Mechanical Dust Collector • Selective Catalytic Reduction (SCR) systems
• Ammonia Flue Gas Conditioning System • SCR System (Honeycomb & Plate type) with
• Fans anhydrous Ammonia/ Aqueous Ammonia/ Urea
• Axial reaction fans of single stage and double stage reagent for NOx emission control
for clean air application and dust laden hot gases • SCR Plate Type Catalyst for NOx emission control
Corporate Profile
applications up to 200°C, with capacity ranging • Air Quality Control Systems
from 40 to 1300 m3/s and pressure ranging from
• De NOx
400 to 1,500 mmwc
• In furnace combustion control solutions
• Axial impulse fans for both clean air and flue gas
applications up to 200°C, with capacity ranging • Selective Catalytic Reduction (SCR) systems
from 25 to 600m³/s and pressure from 300 to 700
mmwc Soot Blowers
• Single and double-suction radial fans (plate aerofoil
• Long Retractable Soot Blowers (LRSB) for travel upto
bladed) for clean air and dust-laden hot gases
Board's Report
12.2m
applications up to 400°C, with capacity ranging
from 4 to 660m³/s and pressure ranging from 200 • Furnace Temperature Probe (FTP) for travel length up to
to 3000 mmwc 10m
• Pulverizers • Long Retractable Non-Rotating (LRNR) soot blowers
with forward blowing for Air Pre heaters
• Bowl Mills of slow and medium speed (for both
pressurized & suction environment) with capacity • Rotary Soot Blowers
from 10 T /Hr. to 120 T/ Hr. • Rack type Long Retractable Soot Blowers
• Ball Tube Mills from 30 T/ Hr. to 110 T/ Hr. • Ash discharge valve for CFBC boiler application
• Wet Ball Mills (upto 50 T/Hr.) for FGD Applications • Soot Blowers with sequential PLC, control panel and
• Guillotine Gates & Dampers integral starter
• Guillotine gates with electric/ pneumatic actuator.
100% leak proof with seal air (Maximum Width/ Valves
Height): Type 1: 7m/14.5m, Type 2: 14.6m/4.5 m,
• High and Low-pressure Turbines Bypass Valves &
Type 3: 11.5m/6.5m
hydraulic system for utilities and industrial application
• Bi-plane dampers with electric/ pneumatic actuator.
• High and medium-pressure Valves, Cast and Forged
100% leak proof with seal air (Maximum Width/
Steel Valves of Gate, Globe, Non- Return (Swing- Check
Height): Type-1: 7m/14.5m, Type-2: 12m/10.5 m
and Piston Lift-Check) types for steam, oil and gas duties
• Louver dampers (open close/ regulating) with upto 950 mm diameter, maximum pressure class 4500
electric/ pneumatic actuator (Maximum Width/ (791 kg/cm2) and 650 °C temperature
Height): Type-1: 6.5m/14.5 m, Type-2: 12m/10.5m
• Hot reheat and cold reheat Isolating Devices upto 900
• Control dampers (regulating) with electric/ mm pipe size class 1500 and steam temp upto 650°C
pneumatic actuator (Maximum Width/ Height):
• High capacity Spring Loaded Safety Valves for set
Type- 1:6.5m/14.5m, Type-2: 12m/10.5m
pressure upto 372 kg/cm2 and temperature upto 630°C
• Steel Chimneys
Notice
• Automatic electrically operated pressure relief valves

• Steel Chimneys for flue gas exhaust applications for set pressure upto 320 kg/cm2 and temperature upto
with maximum height of 80m and Inner Diameter 610°C
up to 6.5m
• Safety relief valves for set pressure up to 421 kg/cm2 and
• Flue Gas Desulphurization (FGD) systems temperature upto 537°C
• Wet Limestone & Seawater based FGD systems

• Reactive cum absorptive type Vent Silencers maximum capacity upto 2500 Tonnes per day, capable to produce
diameter of 2700 mm syngas, to meet the following applications:
• Direct Water Level Gauges • Hydrogen/ Ammonia/ Ammonium Nitrate
• Angle Drain Valves - Single & Multi Stage for Turbine • Methanol/Dimethyl ether
Drain Application • Direct reduction of Iron ore
• Severe Service Control Valves for Re-Heater & Super • Power through IGCC
Heater Spray Lines
• Synthetic Natural gas
• Quick Closing Non return Valves for Extraction lines
• PFBG technology is suitable for the gasification of high
and Power Assisted Non Return valves, upto 900mm
and low-rank coals including lignite
diameter, 158 kg/cm² pressure and 540°C temperature
• Knife edge gate valve of size 1300 mm & 1400 mm
diameter for FGD applications Steam Turbines
• Steam Turbines upto 1000 MW rating for thermal sets
Piping Systems and upto 700MWe ratings for Nuclear Power Plants
• 15000 HP Turbines for Marine Propulsion
• Power cycle piping, Constant load Hangers, Variable
spring Hangers, Hanger components, Low Pressure
piping including circulating water piping for power Turbogenerators
stations upto 1000 MW capacity including Super Critical
• Turbogenerators of higher rating upto 1000 MW for
sets
Thermal/Gas Power Plants
• Piping systems for Nuclear Power Stations, Combined
• Generators for CCPP applications
Cycle Power Plants & Industrial boilers and process
industries • Generators upto 731MWe for Nuclear Power Plants
• Prefabricated piping/ duct spools to cater to refinery • Generator Cooling System: Air, Hydrogen, Water
segment complying with National Association of • Excitation System: Brushless / Static Type
Corrosion Engineers (NACE) requirements • Auxiliary Systems: Primary Water System, Seal Oil
System, Gas System, etc.
Seamless Steel Tubes
• Hot-finished and cold-drawn seamless steel tubes with Industrial Sets
a range varying from outer diameter of 21 to 133 mm and • Steam Turbine based Captive Power Plants
wall thickness of 2 to 12.5 mm, in carbon steel and low-
• Steam Turbine-Generator (STG)/ Boiler/
alloy steels to suit ASTM/ASME and other international
Boiler-Turbine-Generator (BTG)/ Engineering-
specifications
Procurement-Construction (EPC): Unit rating up to
• Rifled tubes (ribbed) with a range varying from tube 200 MW
outer diameter of 38.1 to 63.5 mm and wall thickness of
• Non Reheat upto 120 MW unit rating
5.6mm to 7.1mm, in carbon steel and low-alloy steels to
suit ASME and other international specifications • Reheat from 70 MW to 200 MW unit rating
• Spiral finned Tubes with a range varying from tube • Steam Turbine to Mechanical drives like Compressors,
outer diameter of 31.8 to 114.3 mm and wall thickness Pump, Blowers etc.
of 2.4mm to 9.5mm and with fin height of 12.5mm to • Gas Turbine based Captive Power Plants GTG/ HRSG/
21mm and fin density ranges from 40 to 240 fins per EPC: 26 MW (Fr-5) to 126 MW (Fr-9E)
meter, in carbon steel and alloy steels to suit ASME
standards
Castings And Forgings
• Heavy castings and forgings of creep resistant alloy
Pressurized Fluidized Bed Gasifier steels, stainless steel and other grades of alloy steels
(PFBG) (Coal to Chemicals) meeting stringent international specifications for
components of sub critical, supercritical and Ultra-
• High-Pressure Oxy-blown coal gasifier of single unit
super critical technology

Condenser and Heat Exchangers • Oil coolers- STG upto 150 MW, GTG upto 126 MW
(Fr-9E)
• Surface Condenser
• Generator Air coolers upto 150 MW STG and GTG
• For thermal power plants up to 1000 MW up to 250 MW (9 FA)
Annual Review
• For Nuclear power plants up to 700 MWe
• 12.5 MW Marine applications Pumps
• Industrial Condensers
• Pumps for various utility power plant applications up to
• Air Cooled Condenser for 660 and 800 MW thermal a capacity of 1000 MW:
power plants
• Boiler feed pumps (motor or steam turbine driven)
• Feed Water Heaters (HP Heaters, LP Heaters, Drain and Boiler feed booster pumps.
Coolers, Duplex Heater, De-Super Heaters, etc.)
• Condensate extraction pumps including Drip
Corporate Profile
• Thermal: 7 to 600 MW (sub-critical) & 350- 1000 Pumps
MW (super critical with single stream)
• Circulating water pumps (Cooling Water Pumps)
• Nuclear: 236 MWe, 500 MWe & 700 MWe
• Concrete Volute Cooling Water Pumps
• Moisture Separator & Reheater (MSR)
• Pumps for Secondary Side of Nuclear Power Plants
• Nuclear: 236 MWe, 500 MWe & 700 MWe
• Slurry Recirculation Pumps for FGD Applications
• Live Steam Reheater (LSR) upto 500 MW
• 500 MW Fast Breeder Reactor (FBR) Nuclear sets
• D2O and Moderator Heat Exchangers for Nuclear
Compressors
Board's Report
primary cycle
• Auxiliary Heat Exchangers for Turbo and Hydro • Complete range of Centrifugal compressors (driven
Generators by Steam Turbine, Electric Motor and Gas Turbine)
along with auxiliary systems for all major compression
• Air Coolers (Frame & Tube Type)
applications in various industries like Refineries,
• Oil Coolers (Shell & Tube Type and Plug in Type) Fertilizers, Petrochemicals, Oil & Gas, Steel, Power and
• Hydrogen Coolers (Frame & Tube Type) Natural Gas Transportation sectors
• Oil Coolers (Shell & Tube Type Single Tube or Concentric • Compressor packages for capacity up to 3,00,000 m³/
Double Tube Type) (Frame & Tube Type) for Transformers Hr for various gases like Air, CO2, Syngas, N2, H2, NH3,
• Auxiliary Heat Exchangers (Shell & Tube Type) for general Natural Gas, Wet Gas, Propylene and other services
application • Horizontally split type up to 40 bar design pressure
• Butterfly Valves & Rubber Expansion joints for water • Vertically split type up to 350 bar design pressure
application from 400NB to 2800NB • Oxidation Blowers for FGD Applications
• Flash Tanks & Misc. Tanks for oil & water storage
• Auxiliary Heat Exchangers for Transformers Solar Photovoltaics
• Oil Coolers (Shell & Tube Type Single Tube or
• Multi/ Mono Crystalline Solar cells
Concentric Double Tube Type) (Frame & Tube Type)
• Multi Crystalline/ Mono-PERC PV Modules (upto 400
• Auxiliary Heat Exchangers for general application
Wp)
• Water - Water Coolers (Shell & Tube Type)
• Solar Inverter for utility and railway traction application
• Gland steam condensers
• Power Transformers (15 MVA and above)
• Industrial applications upto 7 MW to 150 MW
• Passive Solar Tracking System
• Thermal Plants upto 1000 MW
• Space grade solar panels
• Nuclear Plants upto 700 MWe
Notice
• Air-cooled heat exchangers for GTG up to 126 MW (Fr-

9E), and Compressor applications of all ratings Automation and Control Systems
• Steam jet air ejectors for condensers up to 150 MW • Automation and Control Systems for
• Deaerators from 7 MW to 1000 MW • Steam Generator/ Boiler Controls including Boiler
• Gas coolers for compressor applications Protection

• Steam Turbine Controls • Open Platform Communications (OPC) connectivity
• Boiler Feed Pump (BFP) Drive Turbine Control from DCS to third party systems
• Station Control and Instrumentation/ DCS • Enterprise Asset Management System (EAMS)
• Offsite /Off base controls/ Balance of Plant Controls • Operator Training Simulator
• Ash Handling Plant (AHP) • Remote Monitoring & Diagnostic System (RMDS)
• Coal Handling Plant(CHP)
• Water System for power plant Switchgear
• Mill Reject System (MRS) • Medium Voltage Vacuum Switchgear for indoor and
• Condensate On-Load Tube Cleaning system outdoor applications for voltage ratings upto 36 kV and
(COLTCS) Gas Insulated Switchgears upto 420 kV
• Gas Booster Compressor (GBC) • Indoor switchgears
• Condensate Polishing Unit (CPU) • Upto 12 kV, 50 kA, 4000 Amp for thermal,
• Heating, Ventilation & Air conditioning (HVAC) nuclear, hydro and combined cycle Power
Plant Projects
• Fuel Oil Unloading System (FOUS)
• Upto 36 kV, 31.5 kA, 2500 Amp for Industries,
• Hydro Power Plant Control System
solar power plants and refineries
• Gas Turbine Control System
• Compact switchgear 12 kV, 25 kA, 1250 Amp
• Nuclear Power Plant Primary Cycle Control Centre for distribution system
Instrumentation Package (CCIP)
• Outdoor Vacuum circuit breakers
• Nuclear Power Plant Turbine & Secondary Cycle
• 12 kV, 26.3 kA, 1250 Amp for distribution
control system
segment
• Power block of solar thermal power plant
• 36 kV, 26.3 kA, 1600 Amp for distribution
• Industrial Automation segment
• Sub-Station Automation (SAS) • 25 kV (52kV class), 20 kA, 1600 Amp for track
• Non-FST HVDC control panels side railway application
• Electrical Control System (ECS) for Refineries • Gas insulated switchgears
• Energy Management System (EMS) for Power Plant • 36 kV, 40kA, 2500 Amp for Refineries, Urban
• Electrical Interface System for MV/LV Switchgear Distribution & Industries (Single Busbar &
Double Busbar Designs)
• 420kV, 40kA, 3150 Amp for transmission
Transmission Systems sector (hydro station/ thermal power plant/
• EHV & UHV Sub-stations/switchyards both AIS & GIS other substations)
type ranging from 33 kV to 765 kV • 420 kV Gas Insulated Bus ducts
• HVDC transmission systems
• Flexible AC Transmission System (FACTS) solutions On Load Tap Changers (OLTC)
• Fixed Series Compensation (FSC)
• On Load Tap Changer upto 765 kV class Transformer
• STATCOM & Off Circuit Tap Switch upto 765 kV, 500MVA
• Controlled Shunt Reactor (CSR) class Transformer for various application like Power
• Phase Shifting Transformer (PST) Transformer, Furnace Transformer, Station Transformer,
Rectifier Transformer etc.
• Power System Studies
Software System Solution L T Switchgear & Bus Ducts

• Bus-ducts with associated equipment to suit generator
• Performance Analysis, Diagnostics & Optimization
power output of utilities of upto 800 MW capacity
(PADO) for Thermal Utilities
• 415 V LT Switchgear for Thermal Power Plant, Hydro,
• Performance Calculation & Optimization system and
Nuclear, Captive Power Plant (CPP) & Steel industry
Real Time Performance Data Monitoring system

Transformers & Reactors • 25 kV Locomotive bushings
• Wall bushings upto 245 kV
• Power transformers for voltage upto 1200 kV
• Generator transformers (upto 600 MVA, 420 kV, 3
Control Gear
Annual Review
Ph / 400 MVA, 765 kV, 1 Ph/500 MVA, 420 kV,1 Ph)
• Autotransformers (upto 1000 MVA, 400 kV, 3 Ph / • Electronic controllers for ESPs in industries/ power
600 MVA, 400 kV, 1 Ph / 500 MVA, 765 kV, 1 Ph / plants
1000 MVA, 1200 kV, 1 Ph) • Digital Static Excitation control system (2000 A, 400 V
• Converter Transformers / Smoothing Reactors (upto DC with redundant thyristor stacks & DC field breaker)
600 MVA, ±800 kV) / (upto 254 MVAr, ± 500 kV) for • Large current rectifiers with PLC Based digital controls
HVDC transmission
• Control & Protection Panels (upto 400 kV) For EHV
• Shunt Reactors (upto 150 MVAr, 420 kV, 3 Ph / 110MVAr, Transmission projects
Corporate Profile
765 kV, 1 Ph)
• SCAP, Thyristor, RAPCON and STATCON Panels.
• Controlled Shunt Reactors (up to 200 MVAr, 420 kV, 3
Ph/ 200 MVAr, 420 kV, 1 Ph / 200 MVAr, 765 kV, 1 Ph) for
Flexible AC Transmission system applications Insulators and Ceramics
• Phase Shifting Transformers (upto 500 MVA, 400 kV, 3 • Porcelain Insulators.
Ph/ Upto 500 MVA 400 kV 1 Ph) for transmission lines • Hollow insulators upto 765 kV for Transformers and
• Instrument transformers SF6 circuit breakers.
• Current transformers upto 400 kV • Solid core insulators upto 400 kV for Bus Post &
Board's Report
• Electro-magnetic voltage transformers upto 220 Isolators for substation applications.
kV • Composite Long Rod Insulators
• Capacitor voltage transformers (33K V to 1200 kV) • Upto ±800kV, 420kN for HVDC application
• 24kV PR class Current Transformer for HVDC • Upto 765kV, 210kN for HVAC application.
Projects • Traction Insulators Stay arm, Bracket and 9 Ton
• Special Transformers Insulators for Indian railways.
• Rectifier transformer (upto 120 kA, 132 kV) • Ceramic Lining (CERALIN) wear resistant material for
• Furnace transformer (upto 33 kV, 100 MVA) Thermal Power Plant & Ash Slurry Application.
• ESP transformers up to 95 kVp, 1600 mA • Industrial and Special Ceramics
• Dry type transformers upto 15 MVA 36 kV • EWLI –Electronic Water Level Indicators used in
Boiler Drum Water Level Monitoring (BHELVISION
• Composite Monitoring System for Power Transformers
system)
• Ceramic and Tungsten Carbide Flow Beans for
Capacitors Christmas tree valves.
• H.T. Capacitors • Grinding Media for Pulverizing in Thermal Power
• Shunt, Series & Static VAR Compensation (SVC), Plant.
Harmonic filter & HVDC applications (3.3 kV to 500
kV, 1 Ph/ 3 Ph capacitor banks)
Electrical Machines
• Capacitor Divider for CVT (33kV to 1200kV)
• AC Machines for Safe Area Application
• Coupling Capacitor (33kV to 800 kV, 4400pF to 13200
• Squirrel cage induction motors -150 kW to 22000
pF) for transmission lines
kW
• Surge Capacitor for protection of Generators &
• Slip ring induction motors - 150 kW to 10000 kW
Transformers (11kV to 40 kV)
• Synchronous machines - 1000 kW to 25000 kW
Notice
• Variable speed Motors- 150 kW to 22000 kW

Bushings (Squirrel cage motors)
• Oil Impregnated Paper (OIP) condenser bushings 52 to • Variable speed Motors - 1000 kW to 15000 kW
500 kV for transformer applications (Synchronous motors)

• AC Machines for Hazardous Area Application (Fixed • Metro train
speed or with VFD) • 1600HP Multi-Genset Locomotive
• Flame-proof squirrel cage Induction motors (Ex ‘d’) • WAG7 Locomotive with Regenerative Braking System
(150 kW to 1300kW)
• Diesel Electric Tower Car
• Non-sparking squirrel cage Induction motors (Ex
• Diesel-Electric Shunting Locomotives (upto 3250 HP)
‘n’) (150 kW to 22000 kW)
• OHE recording-cum-test car
• Increased safety squirrel cage Induction motors (Ex
‘e’) (150 kW to 4000 kW) • Dynamic track stabilizers
• Pressurized Squirrel cage Induction motors (Ex ‘p’) • Rail cum Road vehicle
(150 kW to 22000 kW) • TCMS (Train Control & Monitoring System) Panels
• Pressurized Synchronous machines (Ex ‘p’) (1000
kW to 25000 kW) Transportation Equipment
• Industrial Alternators (Steam turbine, Gas turbine and
• Traction Converter & Auxiliary Converter
Diesel engine driven) (3000 kVA to 25000 kVA)
• Vehicle Control Electronics
• Vertical Motors for Primary Coolant Pumps for nuclear
power plants • Hotel Load Converter
• Induction Generators (300 kVA to 6000 kVA) for mini/ • Composite Converter Comprising Traction Converter
micro hydro plant. and Hotel Load Converter
• 2 Pole Air cooled Steam/ Gas Turbine driven Generators • Motorized bogies for mainline Locos
(3 MW to 160 MW) • Traction Transformer
• 4 Pole Air cooled Steam/ Gas Turbine driven Generators • Upto 5400 kVA for conventional locomotives
(3 MW to 40 MW) • Upto 9000 KVA for 3 phase drive locomotives.
• 2 Pole Hydrogen cooled Steam/ Gas Turbine driven • Upto 1200 KVA conventional AC EMU/ MEMUs
Generators (36 MW to 270 MW)
• Upto 1578 kVA for 3 phase EMU
• 200kW HTSC Motor for Marine applications
• 3- phase AC Traction Motors (axel hung/fully suspended
• Permanent Magnet Based Generators upto 5 MW type) (upto 1200 kW) for Locomotives & EMUs
• Gas Turbine generators upto 270MW • DC Traction Motors (upto 630 kW) for Locomotives &
• Alternators for industrial applications with single bearing EMUs
upto 2 MW • Traction Alternators (upto 3860 kW) for Diesel Electric
Locomotives
Rail Transportation •
•
Traction Generators upto 2000 kW
DC Blower motors (upto 50kW) for dynamic braking
Transportation Systems system
• Motor Generator sets (upto 25 kW) for auxiliary
• AC Electric Locomotives (upto 9000 HP, 25 kV AC)
requirements
• AC-DC Dual Voltage Electric Locomotives
• Eddy Current Clutch
• AC EMU (Electric Multiple Units) Coaches
• Traction gears and pinions for Locomotives & EMUs
• Metro Coaches
• Specialized Wagons (upto 28 axle, 296 Ton)
• Traction Propulsion Systems for:
• Railway Track Electrification
• 6000 HP and 9000 HP IGBT based AC Locomotive
• Wheel and Axle machining
• 3-phase IGBT based AC Electric Multiple Unit (EMU)
and Mainline Electric Multiple Unit (MEMU)
• Air-conditioned Electric Multiple Units (ACEMU) Defence and Aerospace
• ACEMU electrics for DC drives • Super Rapid Gun Mount (SRGM) 76/62 for naval ships
• Semi High Speed Trainset (Vande Bharat) • Integrated Platform Management system (IPMS) for
• 1600 HP IGBT based DEMU (Diesel Electric Multiple naval ships
Unit) • Integrated Bridge System (IBS)

• Static Main Motor Generator (SMMG) • Refurbishment and upgradation of Oil Rigs
• Rotary Main Motor Generator with Controls (RMMG) • 3-phase Oil Rig motor up to 1150 HP (for Draw
• Permanent Magnet (PM) based reserve propulsion works, Mud Pump, Drilling)
motor and drive. • Oil Rig motors upto 1000 HP (Draw works, mud
Annual Review
• Frequency converters (PM based and conventional pump, drilling)
motor based) with drive controls • Oil Rig alternators upto 1750 kVA (for AC Power
• Training Simulator for Vehicles, platforms, radars, Pack)
weapons, missiles and Computer Based Training (CBT) • AC/ DC Power Control Room for E760, E1400,
for all defence and para-military forces E2000 & E3000 Rig
• Thermopressed Components for Tank Armor including • AC Power Pack upto 1430 kVA for DG sets
Turret Casting for T-72 Tanks • AC Control Module
• 2 kW Liquid Cooling System for Jammer which
Corporate Profile
• DC Control Module
comprises four modules namely ACM Module, Pump
• Driller’s Console upto 3 mud pumps, IRD & draw
Module, PCM Module and Electronic Control Unit
work control & monitoring, load rating (0-1800 A,
• Casting and Forgings for ships 0-1000 V)
• Onboard Compact Heat Exchangers for various fighter • Mobile Lighting Tower, Rig Lighting Tower
aircraft platforms
• AC- VFD Controls for AC Rigs
• Fuel Tanks and other components for Launch Vehicles
• STATCOM for power factor improvement in AC
and Satellites
SCR Rigs
• Reserve Propulsion motor with drive unit
Board's Report
• Well heads and X-mas Trees upto 15,000 psi, Mud Line
• Compact Brushless Alternators Suspension, Choke and Kill Manifold, CBM Wellheads,
• Space grade Batteries DSPM H- Manifold Assembly, Mud valves
• Solar Panels for Satellites
• Li-ion cells for Launch Vehicles Fabricated Equipment and
• Li-ion batteries for Aircraft applications Mechanical Packages
• Cryogenic storage tanks, Mounded storage systems and
Energy Storage System & E- Mobility storage spheres
• Charging Infrastructure for Electric Vehicles • Pressure Vessels, Columns, Reactors/ Separators, Heat
• Battery Energy Storage Solutions Exchangers
• Fired Heaters
• Purge Gas Recovery Unit
Oil Field Equipment
• Pressure Vacuum Swing Adsorption (PVSA) Oxygen
• Oil Rigs – On-shore drilling rigs with AC- VFD and System (MO2) for medical applications
AC-SCR technology for drilling upto depths of 9,000
• Gear Box
meters, work-over rigs for servicing upto depths of
6,100 meters, mobile rigs for drilling upto depths of • Accessory & Load Gear Box for Gas Turbine
3,000 meters, complete with matching draw-works and Application
hoisting equipment including: • Gearbox for Steam Turbine Application
• Mast and Substructure • Gearbox for Boiler Feed Pump Drive Turbine (BFP
• Rotating Equipment: Draw works; Rotary; Swivels; DT) Application
Travelling Blocks • Gearbox for Air Cooled Condenser (ACC) fan
• Independent Rotary Drive (IRD) Unit Application
• Dead Line Anchor • Gearboxes for Sucker Rod Pump (SRP) Application
Notice
• Mud System including pumps • Gearbox for Independent Rotary Drive (IRD)
• Triplex Mud pumps 5000 psi Working Pressure • Gearbox for AC Draw works
• Mud processing equipment: Degasser, Desander • Gearboxes for Super Rapid Gun Mount (SRGM)
Application
• Sucker Rod Pump (Beam Pump Structure &
Pumping Unit Gear Reducer)

Glossary
ACC Air Cooled Condenser IR Indian Railway
AFQMS Approval of Firms and its Quality Management ISMS Information Security Management System
System ISO International Organization for Standardization
ARAI Automotive Research Association of India ISRO Indian Space Research Organisation
AUSC Advanced Ultra Super Critical KPCL Karnataka Power Corporation Limited
BESS Battery Energy Storage System LCA Light Combat Aircraft
BPCL Bharat Petroleum Corporation Limited LIS Lift Irrigation Scheme
BSE Bombay Stock Exchange MEIL Megha Engineering & Infrastructures Limited
BTG Boiler Turbine Generator MEMU Mainline Electric Multiple Unit
C&I Control & Instrumentation MoU Memorandum of Understanding
CASIDC Combat Aircraft Systems Development & MSME Micro, Small and Medium Enterprises
Integration Centre MSR Moisture Separator & Reheater
CEA Central Electricity Authority NEP National Electricity Plan
CEMILAC Centre for Military Airworthiness and Certification NLCIL NLC India Limited
CFBC Circulating Fluidised Bed Combustion NPCIL Nuclear Power Corporation of India Limited
CIL Coal India Ltd NSE National Stock Exchange
CPIO Central Public Information Officer OEM Original Equipment Manufacturer
CPSE Central Public Sector Enterprise PCP Power Cycle Piping
CSIR Council of Scientific & Industrial Research PFBG Pressurized Fluidized Bed Gasification
CSPGCL Chhattisgarh State Power Generation Company R&D Research & Development
CSR Corporate Social Responsibility R&M Renovation & Modernisation
CVC Central Vigilance Commission RPCL Raichur Power Company Limited
DPE Department of Public Enterprises SCOPE Standing Conference of Public Enterprises
ED Executive Director SCR Selective Catalytic Reduction
EHV Extra High Voltage SEBI Securities and Exchange Board of India
EMU Electric Multiple Unit SG Steam Generator
EPC Engineering, Procurement & Construction SPV Solar Photo Voltaic
ESP Electrostatic Precipitator SRGM Super Rapid Gun Mount
EV Electric Vehicle STG Steam Turbine Generator
FACTS Flexible Alternating Current Transmission System STPP Super Thermal Power Plant
FGD Flue Gas Desulphurization TANGEDCO Tamil Nadu Generation and Distribution
GeM Government e-Marketplace Corporation
GIS Gas Insulated Substation TCA Technology Collaboration Agreements
GSECL Gujarat State Electricity Corporation Limited TCMS Train Control & Management System
HAL Hindustan Aeronautics Ltd TG Turbine & Generator
HVDC High Voltage Direct Current TPD Tonnes Per Day
ICAI The Institute of Chartered Accountants of India TPP Thermal Power Plant
ICF Integral Coach Factory TPS Thermal Power Station
IGBT Insulated-Gate Bipolar Transistor TRSL Titagarh Rail Systems Ltd
IGCAR Indira Gandhi Centre for Atomic Research UB Utility Boiler
IIT Indian Institute of Technology UHV Ultra High Voltage
IOCL Indian Oil Corporation Ltd VFD Variable Frequency Drive
IPM Integrated Platform Management System WAG W (broad gauge), A (AC traction), G (goods duty)
IPR Intellectual Property Right WBPDCL West Bengal Power Development Corporation
Limited

Glossary (Financial Terms) Contingent liability is:
(a) possible obligation that arises from past events
Accounting policies: Accounting policies are the specific
and whose existence will be confirmed only by the
accounting principles and the method of applying those
occurrence or non occurrence of one or more uncertain
Annual Review
principles adopted by the company in preparation and
future events not wholly within the control of the entity;
presentation of the financial statements.
or
Accrual: Financial statement is prepared on mercantile
(b) a present obligation that arises from past events but is
system. The effects of transaction and other events are
not recognised because:
recognised when they occur and they are recorded in the
accounting records and reported in the financial statement (i) it is not probable that an outflow of resources
of that period to which they relate. embodying economic benefits will be required to
settle the obligation; or
Amortization: Amortisation is the systematic allocation of the
Corporate Profile
depreciable amount of an intangible asset over its useful life. (ii) the amount of the obligation cannot be measured
with sufficient reliability.
Balance sheet: A balance sheet is a statement of the financial
position of an entity which states the assets, liabilities, and Consolidated financial statements (CFS): Consolidated
owners ‘equity at a particular point of time financial statements - are the "Financial statements of a
group in which the assets, liabilities, equity, income, expenses
Bonus shares: Bonus shares are additional shares given to the
and cash flows of the parent company and its subsidiaries are
shareholders without any additional cost out of free reserves,
presented as those of a single economic entity.
based upon the number of shares that a shareholder owns.
Credit risk: The risk that one party to a financial instrument
Book value: The amount at which an item appears in the
Board's Report
will cause a financial loss for the other party by failing to
books of account or in financial statements.
discharge an obligation.
Buy back of shares: A buyback, also known as a share
Current ratio: The current ratio is a liquidity ratio that measure
repurchase, is when a company buys its own outstanding
ability to pay short term obligation or dues within one year.
shares to reduce the number of shares available in the open
It is calculated by dividing current assets to current liabilities.
market.
Current asset: An asset shall be classified as current when:
Capital employed is calculated by subtracting Capital WIP,
Intangible assets under development and Deferred tax assets a) it is expected to realise the asset, or intended to sell or
fromthe entity’s net worth. consume it, in its normal operating cycle;
Capital reserve: A reserve of an entity which is not available b) it is held primarily for the purpose of trading;
for distribution as dividend.
c) it is expected to realise the asset within twelve months
Capital redemption reserve: The Company has recognised after the reporting period; or
Capital Redemption Reserve on buy back of equity shares
d) the asset is cash or a cash equivalent unless the asset
from its general reserve. The amount in capital redemption
is restricted from being exchanged or used to settle a
reserve is equal to nominal amount of equity shares bought
liability for at least twelve months after the reporting
back.
period.
Cash & cash equivalent: Cash comprises cash in hand and
Current liability: A liability shall be classified as current when:
demand deposits. Cash equivalents are short term, highly
liquid investments that are readily convertible to known a) it is expected to settle the liability in its normal operating
amount of cash and which are subject to an insignificant risk cycle;
of change in value.
b) it is held primarily for the purpose of trading;
Contract assets: Contract assets (deferred debts and unbilled
c) the liability is due to be settled within twelve months
revenue) represent the amount not yet due for payment as
after the reporting period; or
per contract terms / agreed schedule with customers. The
Notice
same will be contractually due on completion of related d) it does not have an unconditional right to defer
activities / milestones. settlement of the liability for at least twelve months after
the reporting period.
Contract liability: An entity’s obligation to transfer goods
or services to a customer for which the entity has received Current tax expense: Current tax is the amount of income
consideration (or the amount is due) from the customer. taxes payable (recoverable) in respect of the taxable profit
(tax loss) for a period.

Deferred debts: Deferred debts are those debts which will Fair value: Fair value is the price that would be received to sell
become payable on completion of identified milestone like an asset or paid to transfer a liability in an orderly transaction
trial operation, PG test, etc. in terms of the contract. between market participants at the measurement date.
Deferred tax: Deferred tax is calculated using the rates and Financial asset: Any asset that is (a) cash, (b) equity instrument
tax laws that have been enacted or substantively enacted by of another entity, (c) a contractual right to receive cash or
the balance sheet date. another financial asset from another entity or to exchange
financial assets or financial liability with another entity (d) a
Deferred tax asset: Deferred tax assets are the amounts
contract that will or may be settled in the entity’s own equity
of income taxes recoverable in future periods in respect
instruments.
of deductible temporary differences, the carry forward of
unused tax losses and the carry forward of unused tax credits. Financial liability: Any liability that is (a) contractual obligation
to deliver cash or another financial asset to another entity or
Deferred tax liability: Deferred tax liabilities are the amounts
exchange financial assets or financial liabilities with another
of income taxes payable in future periods in respect of taxable
entity or (b) a contract that will or may be settled in the
temporary differences.
entity’s own equity instruments.
Defined benefits plans: Defined benefit plans are
Financial instrument: Any contract that gives rise to a
postemployment benefit plans other than defined
financial asset of one entity and a financial liability or equity
contribution plans. Defined contribution plans are post-
instrument of another entity.
employment benefit plans under which an entity pays fixed
contributions into a separate entity (a fund) and will have no Financing activities: Activities that result in changes in the size
legal or constructive obligation to pay further contributions if and composition of the contributed equity and borrowings of
the fund does not hold sufficient assets to pay all employee the entity.
benefits relating to employee service in the current and prior
General reserves: General reserves are the retained earnings
periods.
of a company which are kept aside out of company's profits
Dividend per share: It is calculated by dividing the total to meet future (known or unknown) obligations.
dividend (excl. dividend distribution tax) for the year to total
Going concern: It means that entity has no intention for
number of outstanding equity shares.
discontinuing the operation in foreseeable future.
Depreciation: Depreciation is the systematic allocation of
Holding company: “holding company”, in relation to one or
the depreciable amount of an asset over its useful life.
more other companies, means a company of which such
Dividend distribution tax: This is an additional income tax companies are subsidiary companies.
paid by the company on any amount declared, distributed or
Impairment loss: An impairment loss is the amount by which
paid by the company by way of dividends.
the carrying amount of an asset or a cash-generating unit
EBITDA means Earnings before interest, taxes, depreciation exceeds its recoverable amount. The recoverable amount of
and amortization. Operational EBITDA is determined after an asset or a cash-generating unit is the higher of its fair value
excluding other income from EBITDA. less costs of disposal and its value in use.
Earnings per share (EPS): It represent profit earned during Indian Accounting Standard (abbreviated as Ind-AS): Ind
the year to each share, calculated by dividing profit after tax AS is the applicable accounting standard for preparation
to total number of outstanding equity shares. of financial statements as notified by Ministry of Corporate
Affairs.
Equity method: The equity method of accounting is used to
determine the net income generated from the joint venture Intangible assets: An intangible asset is an identifiable
in proportion to the size of a company's investment in the nonmonetary asset without physical substance.
venture.
Inventory in number of days: It is calculated by dividing
The equity method is a method of accounting whereby inventory to revenue multiplying by number of days in a year.
the investment is initially recognised at cost and adjusted
Investing activities: Investing activities are the acquisition
thereafter for the post-acquisition change in the investor’s
and disposal of long-term assets & Investments.
share of the investee’s net assets.
Joint venture: A joint venture is a joint arrangement whereby
Expected credit loss: The difference between all contractual
the parties that have joint control of the arrangement have
cash flows that are due to an entity in accordance with the
rights to the net assets of the arrangement.
contract and all the cash flows that the entity expects to
receive, discounted at the original effective interest rate.

Liquidity risk: The risks that an entity may encounter in reclassification adjustments) that are not recognised in profit
meeting obligation associated with financial liabilities. or loss as required or permitted by other Ind ASs.
Market risk: The risk that the fair value or future cash flows Operating activities: Operating activities are the principal
of a financial instrument will fluctuate because of changes revenue producing activities of the entity and other activities
Annual Review
in market prices. Market risk comprises three types of risk: that are not investing or financing activities.
currency risk, interest rate risk and other price risk.
Operating profit margin (%): Profitability performance ratio
Net profit/(loss) margin (%): It represents profit generated used to calculate the percentage of profit generated by
as a percentage to revenue from operations, calculated by Company from its operations. It is calculated by dividing
dividing profit after tax (PAT) to revenue operations. earnings before tax (PBT) excluding other income to revenue
from operations.
Net realisable value: Net realisable value is the estimated
selling price in the ordinary course of business less the Property, plant and equipment (PPE): Property, plant and
Corporate Profile
estimated costs of completion and the estimated costs equipment are tangible items that:
necessary to make the sale.
(a) are held for use in the production or supply of goods
Net worth: The excess of the book value of total assets of an or services, for rental to others, or for administrative
entity over its liabilities. This is also referred to as shareholders’ purposes; and
funds.
(b) are expected to be used during more than one period.
Net worth per share: Net worth per share is calculated by
Revenue from operations: Gross inflow of economic
dividing net worth with total number of outstanding equity
benefits during the period arising in the course of ordinary
shares.
activities of an entity when those inflows result in increases
Board's Report
Non-controlling interest (NCI): is the portion of equity in equity, other than increases relating to contributions from
ownership in a subsidiary not attributable to the parent equity participants.
company, who has a controlling interest (greater than 50%
Return on net worth (%): Return on net worth is a measure of
but less than 100%) and consolidates the subsidiary's financial
profitability of a Company, calculated by dividing net profit to
results with its own.
average net worth (excl. OCI & Capital reserves).
Non-current asset: A non-current asset is an asset that is
Right of Use Assets: An asset that represents a lessee's right
not likely to turn to unrestricted cash within one year of the
to use an underlying asset for the lease term.
balance sheet date.
Trade receivables: A receivable is an entity’s right to
Non-current liability: Non-current liabilities are those
consideration that is unconditional. A right to consideration
obligations not due for settlement within one year.
is unconditional if only the passage of time is required before
Other comprehensive income (OCI): Other comprehensive payment of that consideration is due.
income comprises items of income and expense (including
Notice
Cautionary Statement
Statement in the Annual Report, describing the Company objective, expectation or estimates are forward looking within the
meaning of applicable laws and regulations. Actual result may differ materially from those expressed or implied, depending upon
economic development, government policies and other incidental factors.

(CIN: L74899DL1964GOI004281)
Regd. Office: BHEL House, Siri Fort, New Delhi-110049
Phone: 011-66337000, Fax: 011-66337428
Website: www.bhel.com, E-mail: [email protected]
NOTICE
Notice is hereby given that the 59th Annual General Meeting “RESOLVED FURTHER THAT the Board of Directors of
of the Members of BHARAT HEAVY ELECTRICALS LIMITED the Company be and is hereby authorized to do all such
will be held on Thursday, August 24, 2023 at 10 A.M. IST acts, deeds and things as may be necessary, proper or
through Video Conferencing/ Other Audio-Visual Means expedient to give effect to this resolution.”
(VC), to transact the following businesses: -
7. To consider and, if thought fit, to pass with or without
ORDINARY BUSINESS modification, the following resolution as an Ordinary
Resolution:
1. To receive, consider and adopt the Audited Standalone
and Consolidated Financial Statements of the Company “RESOLVED THAT Ms. Arti Bhatnagar (DIN: 10065528),
for the Financial Year ended 31st March, 2023 together who was appointed as an Additional Director pursuant
with the Directors’ Report and Auditors’ Report thereon. to Article 67(iv) of the Articles of Association of the
Company read with Section 161 (1) of the Companies
2. To declare dividend for the financial year 2022-23.
Act, 2013 w.e.f. 14.02.2023 to hold Office upto the
3. To appoint a Director in place of Shri Upinder Singh date of this Annual General Meeting and in respect of
Matharu (DIN: 09541886), who retires by rotation and whom, the Company has received a notice in writing,
being eligible, offers himself for re-appointment. from the Director herself pursuant to the provisions of
Section 160 (1) of the Companies Act, 2013, be and is
4. To appoint a Director in place of Shri Jai Prakash
hereby appointed as a Director of the Company in line
Srivastava (DIN: 09703643), who retires by rotation and
with applicable statutory provisions, liable to retire by
being eligible, offers himself for re-appointment.
rotation.”
5. To authorize the Board of Directors to fix the
8. To consider and, if thought fit, to pass with or without
remuneration of the Auditors for the year 2023-24.
modification, the following resolution as a Special
SPECIAL BUSINESS Resolution:
6. To consider and, if thought fit, to pass with or without “RESOLVED THAT Shri Ramesh Patlya Mawaskar (DIN:
modification, the following resolution as an Ordinary 10194932), who was appointed as an Additional Director
Resolution: pursuant to Article 67(iv) of the Articles of Association
of the Company read with Sections 149 and 161 (1) of
“RESOLVED THAT pursuant to the provisions of Section the Companies Act, 2013 w.e.f. 08.06.2023 to hold
148 and other applicable provisions of the Companies Office upto the date of this Annual General Meeting
Act, 2013 read with the Companies (Audit and Auditors) and in respect of whom, the Company has received a
Rules, 2014 (including any statutory modification(s) or notice in writing, from the Director himself pursuant to
re-enactment thereof, for the time being in force), the the provisions of Section 160 (1) of the Companies Act,
remuneration of the Cost Auditors appointed by the 2013, be and is hereby appointed as an Independent
Board of Directors of the Company to conduct the audit Director of the Company in line with applicable statutory
of the cost records of the Company for the Financial Year provisions.”
ending on 31st March, 2024 as set out in the statement
annexed to the Notice convening this Meeting, be and is
hereby ratified by the shareholders of the Company.”

9. To consider and, if thought fit, to pass with or without hereby appointed as a Director of the Company in line
modification, the following resolution as an Ordinary with applicable statutory provisions, liable to retire by
Resolution: rotation.”
“RESOLVED THAT Shri Krishna Kumar Thakur (DIN:
Annual Review
10172666), who was appointed as an Additional Director
By Order of the Board of Directors
pursuant to Article 67(iv) of the Articles of Association of
the Company read with Section 161 (1) of the Companies
Act, 2013 w.e.f. 04.07.2023 to hold Office upto the
(Rajeev Kalra)
date of this Annual General Meeting and in respect of
Company Secretary
whom, the Company has received a notice in writing,
Place: New Delhi
from the Director himself pursuant to the provisions of
Section 160 (1) of the Companies Act, 2013, be and is
Corporate Profile
Board's Report
Notice

NOTES: - 7. Corporate/ Institutional Members (i.e. other than
Individuals, HUF, NRI, etc.) are required to send scanned
1. The Ministry of Corporate Affairs (MCA) has vide its
certified true copy (PDF Format) of the Board Resolution/
Circular dated 28.12.2022 read together with Circulars
Authority Letter, etc. together with attested specimen
dated 08.04.2020, 13.04.2020 and 05.05.2020
signature(s) of the duly authorized representative(s), to
(collectively referred to as “MCA Circulars”) allowed
the Scrutinizer at [email protected] with a copy
convening the Annual General Meeting (AGM) through
marked to [email protected].
Video Conferencing or Other Audio-Visual Means (VC),
without the physical presence of the Members at a 8. Members of the Company under the category of
common venue. In accordance with the MCA Circulars, Institutional Investors are encouraged to attend and
provisions of the Companies Act, 2013 and the Securities vote at the AGM.
and Exchange Board of India (Listing Obligations &
9. Relevant Explanatory Statement pursuant to Section
Disclosure Requirements) Regulations, 2015 (SEBI
102(1) of the Companies Act, 2013, in respect of Special
Listing Regulations), the AGM of the Company is being
Business, as set out above is annexed hereto.
held through VC. The deemed venue for the AGM shall
be the registered office of the Company. 10. S/ shri Upinder Singh Matharu and Jai Prakash Srivastava,
Directors, retire by rotation and being eligible, offer
2. In compliance with the aforementioned MCA Circulars
themselves for re-appointment. However, as per the
and SEBI Circular dated 05.01.2023 read together with
terms of their appointment, the tenures of Shri Matharu
SEBI Circular dated 13.05.2022, Notice of the AGM
and Shri Srivastava will expire on their superannuation
along with the Annual Report 2022-23 is being sent
i.e. on 31.08.2023 and 31.12.2024 respectively. Brief
only through electronic mode to those Members whose
resume of S/ shri Upinder Singh Matharu and Jai Prakash
email addresses are registered with the Company/
Srivastava is given at Annexure to the Notice.
Depositories. Members may note that the Notice and
Annual Report 2022-23 will also be available on the 11. Pursuant to Section 124 read with Section 125 of the
websites of the Company (www.bhel.com), BSE Limited Companies Act, 2013, the dividend amounts which
(www.bseindia.com), National Stock Exchange of India remain unpaid/ unclaimed for a period of 7 years, are
Limited (www.nseindia.com) and on the website of the required to be transferred to the Investor Education and
e-voting agency, National Securities Depository Limited Protection Fund constituted by the Central Government.
(NSDL) at www.evoting.nsdl.com. Physical copy of the Accordingly, the final dividend for the financial year
AGM Notice along with the Annual Report shall be sent 2015-16 and interim dividend for the financial year
to those Members who request/ have requested for the 2016-17 which remains unclaimed, are proposed to
same. be transferred to the said account on 24.10.2023 and
08.03.2024 respectively.
3. For receiving all communication (Notice, Annual Report
and the e-voting instructions along with the User ID Members who have not claimed/ encashed their
& Password) from the Company electronically, please dividend so far for the financial year ended on 31.03.2016
refer to the instructions annexed to the Notice. or any subsequent financial year(s) may approach the
Company for obtaining payments thereof before expiry
4. Pursuant to the provisions of the Companies Act, 2013,
of the stipulated 7 years period.
a Member entitled to attend and vote at the AGM is
entitled to appoint a proxy to attend and vote on his/ 12. The Board of Directors of the Company has
her behalf and the proxy need not be a Member of the recommended a final dividend of 20% (Rs. 0.40 per share
Company. Since this AGM is being held through VC of Rs. 2/- each) on the Paid-up Equity Share Capital
pursuant to the MCA Circulars, physical attendance of of the Company for FY 2022-23. This final dividend, if
Members has been dispensed with. Accordingly, the approved by the shareholders at AGM, will be payable
facility for appointment of proxies by the Members will within 30 days from the date of declaration of dividend
not be available for the AGM and hence, the Proxy Form i.e. on or before September 22, 2023 to the Members
and Attendance Slip are not annexed to this Notice. whose names appear in the Register of Members/ list
of Beneficial Owners of the Company as on the Record
5. Since the AGM will be held through VC, the route map of
Date i.e. Friday, August 11, 2023.
the venue of the Meeting is not annexed hereto.
Dividend income is taxable in the hands of the
6. Participation of Members through VC will be reckoned
shareholders and the Company is required to deduct
for the purpose of quorum for the AGM as per Section
tax at source (TDS) from dividend paid to the Members
103 of the Companies Act, 2013.
at prescribed rates in the Income Tax Act, 1961 (IT Act).

In order to enable compliance with TDS requirements Notice will be available electronically for inspection by
in respect of dividends declared by the Company in the Members during the AGM.
future, members are requested to submit Form 15G/
18. All documents referred to in the Notice will also be
15H on annual basis and update details about their
available electronically for inspection without any fee by
Annual Review
residential status, PAN & Category as per the IT Act with
the Members from the date of circulation of this Notice
their Depository Participants or in case of shares held in
up to the date of AGM. Members seeking to inspect such
physical form, with the Company/ Registrar & Transfer
documents can send an email to shareholderquery@
Agent, so that tax at source, if any, as per applicable rates
bhel.in.
may be deducted in respect of dividend payments made
by the Company in future. 19. In compliance with Section 108 of the Companies Act,
2013 read with Rule 20 of the Companies (Management
13. Pursuant to SEBI Listing Regulations, all listed companies
& Administration) Rules, 2014 and Regulation 44 of the
shall use any of the electronic modes of payment facility
SEBI Listing Regulations, the Company is providing its
Corporate Profile
approved by RBI such as ECS/ NECS/ Direct Credit etc.,
Members the facility to exercise their right to vote on
for payment of dividend. Members are advised to submit
resolutions proposed to be passed at the AGM by
their National Electronic Clearing Service/ Electronic
electronic means (remote e-voting) through NSDL.
Clearing Service (NECS/ ECS) mandate in the form
Members whose names appear in the Register of
(given in the Annual Report) duly filled in and signed, to
Members/ list of Beneficial Owners as on Thursday,
enable the Company to make remittance by means of
August 17, 2023 (Cut-off Date) will be eligible to vote for
NECS/ ECS.
the purpose of e-voting/ AGM and a person who is not
14. Members are requested to notify immediately any a Member as on the cut-off date should treat this notice
change of address and other relevant correspondence for information purposes only. The e-voting period will
Board's Report
including NECS/ ECS details and submission of commence from Monday, August 21, 2023 at 9.00 A.M.
Permanent Account Number (PAN): - and will end on Wednesday, August 23, 2023 at 5.00 P.M.
The e-voting module will be blocked on August 23, 2023
i. to their Depository Participants in respect of their
at 5.00 P.M. Once the vote on a resolution is cast by the
demat share accounts; and
shareholder, the shareholder shall not be allowed to
ii. to the Company at its registered office or the change it subsequently. The voting right of shareholders
Registrar & Transfer Agent, M/s Alankit Assignments shall be in proportion to their share in the paid up equity
Limited (4E/2, Alankit House, Jhandewalan share capital of the Company as on the Cut-off Date i.e.
Extension, New Delhi-110055) in respect of their August 17, 2023.
physical shares, in the prescribed forms available at
20. Members who have cast their vote by remote e-voting
www.bhel.com/shareholders-information.
prior to the AGM may also attend the meeting by VC but
15. Members may avail facility of nomination in terms of shall not be entitled to cast their vote again.
Section 72 of the Companies Act, 2013, by nominating
21. The facility for voting through electronic voting system
any person to whom their shares in the Company shall
will also be made available at the AGM and Members
vest in the event of their death.
attending the AGM who have not cast their vote by
16. Pursuant to Section 139 (5) read with Section 142 (1) of remote e-voting will be able to vote at the Meeting
the Companies Act, 2013, the Auditors of a Government through this electronic voting system.
Company are appointed by the Comptroller and
22. The Company has appointed Ms. Ashu Gupta, Company
Auditor General of India and their remuneration is
Secretary (FCS no. 4123, Certificate of Practice no.
fixed by the Company in the Annual General Meeting.
6646) of M/s Ashu Gupta & Co., Practising Company
The shareholders may authorize the Board to fix up
Secretaries, to act as a Scrutinizer, to scrutinize the
an appropriate remuneration for Auditors for the year
process of remote e-voting and electronic voting at the
2023-24 as may be deemed fit by the Board.
AGM, in a fair and transparent manner. The Scrutinizer
17. The Register of Directors and Key Managerial Personnel shall, immediately after the conclusion of voting at the
and their shareholding maintained under Section 170 AGM, scrutinize the votes cast at the Meeting and votes
Notice
of the Companies Act, 2013, the Register of Contracts cast through remote e-voting, make a consolidated
or Arrangements in which the directors are interested Scrutinizer’s Report of the total votes cast in favour or
maintained under Section 189 of the Companies Act, against, if any, and submit the same to the Chairman.
2013 and the relevant documents referred to in the The results along with the Scrutinizer’s Report will be

declared within two working days of the conclusion details for addressing the grievances in this regard are
of the Meeting and the same shall be available on provided in the instructions annexed to the Notice.
the Company’s website (www.bhel.com) and on the
website of the e-voting agency (www.evoting.nsdl.
com) immediately after the declaration of result by the By order of the Board of Directors
Chairman/ person authorized by him in writing. The
results shall also be immediately forwarded to the Stock
Exchanges. (Rajeev Kalra)
Company Secretary
23. The procedures for joining the AGM through VC, remote
Place: New Delhi
e-voting and voting at the AGM along with the contact

ANNEXURE TO THE NOTICE The above fees is exclusive of applicable taxes & out of pocket
expenses which are payable extra.
Accordingly, Members are requested to ratify the
EXPLANATORY STATEMENT PURSUANT TO remuneration payable to the Cost Auditors for the Financial
Annual Review
SECTION 102(1) OF THE COMPANIES ACT, Year ending on 31st March, 2024.
2013 None of the Directors or Key Managerial Personnel of the
Company or their relatives is in any way, concerned or
The following explanatory statement sets out the material
interested, financially or otherwise, in the resolution set out
facts relating to the business mentioned in Item Nos. 6 to 9
at item no. 6.
of the accompanying Notice dated July 28, 2023.
The Board of Directors commends the resolution for approval
ITEM NO. 6 of the Shareholders.
Corporate Profile
Section 148 of the Companies Act, 2013 read with the
ITEM NO. 7
Companies (Audit and Auditors) Rules, 2014 requires
remuneration of the cost auditors as approved by the Board Ms. Arti Bhatnagar (DIN: 10065528), aged 57 years, was
to be ratified by the shareholders subsequently. inducted as Part-time Official Director on the Board of BHEL
w.e.f. February 14, 2023.
Based on the recommendation of the Audit Committee, the
Board of Directors in its meeting held on July 13, 2023 has Ms. Bhatnagar has a post graduate degree in Economics and
approved the names of seven Cost Accountants/ Firms for M. Phil in Defence Strategic Studies from Madras University.
appointment for a total remuneration of Rs. 15.76 Lakhs as Ms. Bhatnagar is an alumnus of the National Defence College.
detailed under:
Board's Report
She is a Civil Servant of the Indian Defence Accounts Service
Rs./Lakhs of the 1990 batch. She is presently working as Additional
Secretary & Financial Adviser, Ministry of Commerce &
Sl. Name of the Unit Remuneration Industry, Ministry of Heavy Industry and Ministry of MSME.
No. Cost Auditors for FY 2023-24
Consolidation 1.01 With about 25 years of experience in dealing with Finance,
M/s Vijender
Accounts and Audit of the Defence Forces, her expertise is in
1 Sharma & Co., HEEP Haridwar 2.01
handling defence acquisition and procurement contracts. Ms.
Delhi
CFFP Haridwar 0.40 Bhatnagar has worked as Joint Secretary (Security), Cabinet
HEP Bhopal 2.01 Secretariat handling SPG for five years. She has also worked
M/s R.M. Bansal as a Chief Vigilance Officer for Air India, Pawan Hans Limited
2 TP Jhansi 0.81
& Co., Kanpur and Airport Authority of India.
HERP Varanasi 0.40
M/s Narasimha Ms. Arti Bhatnagar holds the position of Part-time Official
HPEP Director on the Boards of H.M.T. Limited, India International
3 Murthy & Co., 2.01
Hyderabad
Hyderabad Convention & Exhibition Centre Limited, Invest India, MMTC
M/s HPBP Trichy 2.67 Limited, The State Trading Corporation of India Limited
Subramanian and India Trade Promotion Organization. Further, she is
4 Rajagopal & Chairperson of the Audit Committee of India Trade Promotion
Associates, BAP Ranipet 1.33 Organization, Member of the Audit Committees of H.M.T.
Tiruchirapalli Limited & MMTC Limited and Member of the Stakeholder
M/s Murthy SBD Bengaluru 0.53 Relationship Committee of H.M.T. Limited.
5 & Co. LLP, EDN Being a Government of India nominee on the Board of BHEL,
Bengaluru 0.67
Bengaluru Ms. Arti Bhatnagar does not receive any remuneration from
CFP Rudrapur 0.40 BHEL.
M/s Paliwal
FSIP Ms. Arti Bhatnagar does not hold any shares in BHEL and
6 & Associates, 0.61
Jagdishpur
Notice
Lucknow she does not have any relationship with other Directors/
IVP Goindwal 0.40 Manager/ Key Managerial Personnel of the Company.
M/s SSPGR &
HPVP Ms. Arti Bhatnagar has attended one Board Meeting which
7 Associates LLP, 0.53
Visakhapatnam was held during her tenure in FY 2022-23.
Visakhapatnam
Total 15.76

In line with applicable statutory provisions read with Article In line with applicable statutory provisions read with Article
67(iv) of the Articles of Association of the Company, Ms. Arti 67(iv) of the Articles of Association of the Company, Shri
Bhatnagar holds office till the date of ensuing Annual General Ramesh Patlya Mawaskar holds office till the date of ensuing
Meeting and is eligible for appointment. As per requirement Annual General Meeting and is eligible for appointment. As
of Section 160 of the Companies Act, 2013, the Company per requirement of Section 160 of the Companies Act, 2013,
has received a Notice in writing, proposing candidature of the Company has received a Notice in writing, proposing
Ms. Arti Bhatnagar for the Office of Director of the Company. candidature of Shri Ramesh Patlya Mawaskar for the Office of
Independent Director of the Company.
Except Ms. Arti Bhatnagar, being an appointee, none of the
Directors or Key Managerial Personnel of the Company The Company has received a declaration from Shri Ramesh
or their relatives is in any way, concerned or interested, Patlya Mawaskar that he meets the criteria of independence
financially or otherwise, in the resolution set out at item no. 7. as prescribed both under Section 149(6) of the Companies
Act, 2013 and Regulation 16 of the SEBI Listing Regulations.
The Board of Directors commends the resolution for approval
Keeping in view his vast expertise and knowledge, it will be in
of the Shareholders.
the interest of the Company that Shri Ramesh Patlya Mawaskar
is appointed as an Independent Director and he has the skills
ITEM NO. 8
& capabilities required for the role. In the opinion of the Board,
Shri Ramesh Patlya Mawaskar (DIN: 10194932), aged 53 Shri Ramesh Patlya Mawaskar fulfills the conditions specified
years, was inducted as an Independent Director on the Board in the Companies Act, 2013 and Rules made thereunder for
of BHEL w.e.f. June 8, 2023. his appointment as an Independent Director of the Company
and is independent of the Management
Shri Ramesh Patlya Mawaskar is a Commerce graduate from
Amravati University and has also done M.A. (Public Admin.) Except Shri Ramesh Patlya Mawaskar, being an appointee,
from K.K.S.V. Ramtek University. none of the Directors or Key Managerial Personnel of the
Company or their relatives is in any way, concerned or
Shri Mawaskar’s area of specialization includes Management
interested, financially or otherwise, in the resolution set out
and Administration. He started his career at very young age
at item no. 8.
with Government of Maharashtra and held various positions
at different level. He had an extensive experience of more The Board of Directors commends the resolution for approval
than 29 years in public services viz., controlling of Public of the Shareholders.
Distribution System (PDS), Inspection & Supervision of all
Government food warehouse and PDS at various divisions. ITEM NO. 9
He took voluntary retirement from the position of Dy.
Shri Krishna Kumar Thakur (DIN: 10172666), aged 49 years,
Commissioner in Food and Civil Supply Department.
was inducted as Director (Human Resources) on the Board of
Shri Mawaskar has varied & diverse experience in area BHEL w.e.f. July 4, 2023.
of public administration. He has a great dedication and
Shri Krishna Kumar Thakur is a 1998 batch officer of Indian
assiduous approach to achieve goals of socio-economic
Railway Personnel Service (IRPS). He is a Post-Graduate in
development. He has a keen interest in social service and
Literature from Tilka Manjhi University, Bhagalpur and also
also involved in various social activities especially pertaining
holds a degree of Post-Graduate Diploma in Management
towards upliftment and socio-economic development of
with specialisation in Human Resource (PGDM-HR) from Tata
tribal people.
Institute of Social Sciences (TISS).
Appointment of Shri Ramesh Patlya Mawaskar is upto
He has a diverse and versatile experience of 25 years of
01.06.2026 or until further orders, whichever is earlier. As an
glorious service in Indian Railways and CPSUs with fine
Independent Director, he is entitled to sitting fee for Board
handling of HR matters and administration. During his career,
Meetings and Board Level Committee Meetings attended by
he has headed HR department of three important Railway
him.
divisions i.e. Solapur, Bhopal & Mumbai, included therein
Shri Ramesh Patlya Mawaskar does not hold any shares all HR matters of thirty five thousand personnel of Mumbai
in BHEL and he does not have any relationship with other Division. He has always been exceptional in timely and
Directors/ Manager/ Key Managerial Personnel of the transparent handling of HR matters for serving and retired
Company. employees. Employee welfare has always been his topmost
priority. As Chairman, Railway Recruitment Cell, Western
Since Shri Ramesh Patlya Mawaskar was appointed as
Railway, he has successfully completed recruitment of
Director on 08.06.2023, he did not attend any Board Meeting
approximately twelve thousand employees. While working
during FY 2022-23.
on secondment with RITES, he had served in a foreign project

of Train Operation at Saudi Arabia and his contribution was Since Shri Krishna Kumar Thakur was appointed as Director
critical on the matter of two hundred work visa (IQAMA), on 04.07.2023, he did not attend any Board Meeting during
procurement of human capital and efficient management FY 2022-23.
of resources meeting client’s satisfaction in a time bound
In line with applicable statutory provisions read with Article
Annual Review
manner. He had also headed HR department of Konkan
67(iv) of the Articles of Association of the Company, Shri
Railway Corporation Limited (KRCL) wherein he played an
Krishna Kumar Thakur holds office till the date of ensuing
important role in developing and streamlining HR policy and
Annual General Meeting and is eligible for appointment. As
procedures of KRCL.
per requirement of Section 160 of the Companies Act, 2013,
As a fine HR professional, he has rendered yeoman’s service the Company has received a Notice in writing, proposing
in dealing with unions/ associations, which has also been candidature of Shri Krishna Kumar Thakur for the Office of
his area of strength. In all his assignments, his proactive, Director of the Company.
progressive and transparent handling of personnel matters
Except Shri Krishna Kumar Thakur, being an appointee, none
Corporate Profile
had helped the organisations in maintaining cordial industrial
of the Directors or Key Managerial Personnel of the Company
relations and fulfilling corporate responsibilities. A visionary,
or their relatives is in any way, concerned or interested,
he is credited with long-term systemic improvements for
financially or otherwise, in the resolution set out at item no. 9.
efficient and effective management of key ingredients
of corporate and government functioning in overall The Board of Directors commends the resolution for approval
organisational perspectives. of the Shareholders.
Appointment of Shri Krishna Kumar Thakur is upto 03.07.2028

or until further orders, whichever is earlier, in the pay scale By Order of the Board of Directors
of Rs. 1,80,000 – Rs. 3,40,000 p.m. on terms and conditions
Board's Report
approved by the Government of India.
(Rajeev Kalra)
Shri Thakur does not hold any shares in BHEL and he does Company Secretary
not have any relationship with other Directors/ Manager/ Key Place: New Delhi
Managerial Personnel of the Company. Dated: July 28, 2023
Notice

DETAILS OF DIRECTORS PROPOSED FOR RE-APPOINTMENT
SHRI UPINDER SINGH MATHARU Shri Upinder Singh Matharu has attended all the Board
Meetings (eleven) held in FY 2022-23.
Shri Upinder Singh Matharu (DIN: 09541886), aged 59 years,
was inducted as Director (Power) on the Board of BHEL w.e.f.
March 21, 2022. SHRI JAI PRAKASH SRIVASTAVA
Shri Matharu is a 1984 batch Mechanical Engineering graduate Shri Jai Prakash Srivastava (DIN: 09703643), aged 58
from Thapar Institute of Engineering & Technology, Patiala. years, was inducted as Director (Engineering, Research &
He holds post graduate degree in Business Administration Development) on the Board of BHEL w.e.f. August 12, 2022.
(Marketing) besides being a Govt. certified Energy Manager He also holds the additional charge of Director (Finance) and
and Auditor from Bureau of Energy Efficiency (BEE). is the Chief Financial Officer, BHEL.
Shri Matharu joined BHEL in 1985 at Industrial Valves Plant Shri Srivastava is a 1985 batch Mechanical Engineering
(IVP), Goindwal when the plant was being set up. He has had graduate from IIT Roorkee (erstwhile University of Roorkee)
a diverse and versatile experience spanning almost 38 years, with a post graduate degree in Business Administration. Shri
working initially in manufacturing units at IVP and HPBP Srivastava has subsequently also undergone an Advanced
Tiruchirappalli and then in BHEL's Power Sector divisions Management Programme from IIM, Calcutta.
including in Project Management function. Subsequently he
Shri Srivastava joined BHEL in 1985 as Engineer Trainee.
headed Power Sector Eastern Region (PSER).
He has about 38 years of diverse and extensive experience
As Head of Project Management Group, Shri Matharu was in almost all product lines of BHEL across all major
responsible for execution of more than 25,000 MW of functions viz. Planning & Development, Marketing &
thermal power projects in the Country and as Head of PSER, Business Development, Technology Management, Project
he oversaw execution of more than 8000 MW of thermal, Management, Project Finance & Control, Capital & Revenue
hydro power projects in India and overseas besides FGD Budgeting, Receivables Management, Financial Forecasting &
projects. During his tenure in Project Management, he was Planning, Treasury Management, Manufacturing Operations,
instrumental in developing and evolving various project Procurements, Quality, Engineering, R&D, Cost Optimization,
management practices and systems of the Company, besides Human Resource Management, Industrial Relations,
making significant contributions to the power sector capacity Legal, Digitalization, Strategic Management and handling
addition. During his stint in manufacturing units, he gained Stakeholders communications and strengthening Investor
hands on experience in variegated functions including Sub- relations in various capacities across entire BHEL value chain
Contracting, Materials Management, Operation Planning while overseeing financial operations of units and Business
& Control, Management Services, and was also actively sectors including over two-years stint in the Apex office
involved from the inception of the manufacturing unit of IVP, as Strategic Adviser to CMD, BHEL. He has acquired all the
Goindwal. requisite competencies related to apex level responsibilities
associated with Board Report, Financial Reporting,
A soft-spoken person, he is widely known as a trustworthy
Disclosure & Compliances, Management Discussion and
professional having in-depth knowledge and experience
Analysis, Directors Responsibilities Statement, CEO/CFO
of power sector ecosystem for speedy implementation of
Certification, Effectiveness of Internal Financial Controls,
projects. His extensive experience in manufacturing units
Financial Risk Management, Adequacy and effectiveness
and corporate functions have enabled him to assess the
of Financial Systems & Procedures, Structural frameworks
prospective changes in the business environment and
for Liquidation of Receivables, Strategic Cost Management,
contribute effectively in formulation of strategies for the
Inventory Optimization, Procurement Efficiencies, Liquidity
growth of the Company.
Management, Achievement of financial parameters of MoU,
Appointment of Shri Upinder Singh Matharu is upto etc.
31.08.2023 or until further orders, whichever event occurs
Previously as Executive Director & Head of Unit – Industry
earlier, in the pay scale of Rs. 1,80,000 – Rs. 3,40,000 p.m. on
sector, he had been instrumental in driving financial
terms and conditions approved by the Government of India.
performance of several Industry sector businesses with
Shri Upinder Singh Matharu does not hold any shares in BHEL his focused approach of cash-centric project execution
and he does not have any relationship with other Directors/ to achieve record collections. Also, earlier as Head of
Manager/ Key Managerial Personnel of the Company. one of the Manufacturing Units of BHEL, his extensive

efforts in maximizing financial performance through strict He has been responsible for various initiatives resulting into
budgetary controls, improved turnover realization and profit “Many Firsts Achievements” throughout his career history.
maximization, resulted into achievement of Best-in-Last-5 His wide exposure across BHEL operations has enriched him
years’ Financial results for the unit. with a strong acumen to analyze market trends & develop
Annual Review
market-ready capabilities and has enabled him to contribute
Shri Srivastava, as Director (E, R&D) & Director (Finance) –
effectively in formulation & implementation of strategies in
additional charge, has been leading company-wide capability
the changing business environment & put BHEL on the path
building initiatives in new growth areas such as Defence &
of sustainable growth.
Aerospace, Railway Transportation, Hydrogen economy,
Coal to Chemicals, Advanced Propulsion, etc. as well as Shri Jai Prakash Srivastava holds the position of Non-Executive
establishment of National facilities and Centres of Excellence. Chairperson on the Board of BHEL - GE Gas Turbine Services
He is also driving innovative revenue models across the Private Limited and Non-Executive Director on the Board of
company leveraging company’s USPs for catalyzing growth Raichur Power Corporation Limited.
Corporate Profile
trajectory of the company. As the Chief Financial Officer
Appointment of Shri Jai Prakash Srivastava is upto 31.12.2024
of the Company, he is providing financial perspective to
or until further orders, whichever event occurs earlier, in the
the business strategies and maintaining effectiveness of
pay scale of Rs. 1,80,000 – Rs. 3,40,000 p.m. on terms and
financial risk management to protect stakeholders’ interest.
conditions approved by the Government of India.
He is laying emphasis on evolving systemic frameworks and
recalibrating policies, to enable orderly and efficient conduct Shri Jai Prakash Srivastava does not hold any shares in BHEL
of business operations. Shri Srivastava, under the prevailing and he does not have any relationship with other Directors/
and unprecedented challenges, has taken up maximization of Manager/ Key Managerial Personnel of the Company.
financial performance in mission mode and devising prudent
Shri Jai Prakash Srivastava has attended all the Board Meetings
Board's Report
operating, investing and financing strategies to drive liquidity
(six) held during his tenure in FY 2022-23.
and profitability in operations. He is focusing on fostering a
culture of operational excellence through digital integration,
wherever possible, while ensuring compliance, transparency By Order of the Board of Directors
and financial propriety in operations.
(Rajeev Kalra)
Company Secretary
Place: New Delhi
Notice

PROCEDURES FOR JOINING THE The result will simultaneously be communicated to the stock
exchanges.
AGM THROUGH VC, REMOTE Subject to receipt of requisite number of votes, the
E-VOTING AND VOTING AT THE Resolutions proposed in the Notice shall be deemed to be
passed on the date of the Meeting, i.e., on August 24, 2023.
AGM
INSTRUCTIONS FOR VOTING THROUGH ELECTRONIC
In compliance with the provisions of Section 108 of the MEANS AND JOINING VIRTUAL MEETING
Act, read with Rule 20 of the Companies (Management and
Administration) Rules, 2014, as amended from time to time, A. Process and manner for remote e-voting, and voting
Regulation 44 of the SEBI Listing Regulations and in terms of during the AGM are explained below:
SEBI Circular no. SEBI/HO/ CFD/CMD/CIR/P/2020/242 dated Step-1: Access to the NSDL e-voting system and
December 9, 2020 in relation to e-voting facility provided by casting vote electronically on NSDL e-voting system
listed entities, the Members are provided with the facility to
cast their vote electronically, through the e-voting facility A.1) Login method for Individual shareholders holding
provided by NSDL, on all the resolutions set forth in this securities in demat mode
Notice. The instructions for e-voting are given herein below. In terms of the SEBI Circular dated December 9, 2020 on the
The remote e-voting period will be as under: - e-voting facility provided by listed companies and as part
of increasing the efficiency of the voting process, e-voting
Commencement of 9:00 A.M. on Monday, August process has been enabled for all individual shareholders
remote e-voting: 21, 2023 holding securities in demat mode to vote through their
End of remote e-voting: 5:00 P.M. on Wednesday, demat account maintained with depositories / websites
August 23, 2023 of depositories / depository participants. Shareholders are
advised to update their mobile number and email-id in their
Members holding shares either in physical form or in
demat accounts in order to access e-voting facility.
dematerialized form, as on Thursday, August 17, 2023 i.e., Cut-
off date, may cast their vote electronically during the above Type of Login Method
period. The e-voting module shall be disabled by NSDL for shareholders
voting thereafter. Members have the option to cast their vote Individual I. NSDL IDeAS Facility:
on any of the resolutions using the remote e-voting facility Shareholders
either during the period commencing from August 21, 2023 • If you are already registered for the
holding
NSDL IDeAS facility:
and ending on August 23, 2023 or e-voting during the AGM. securities in
Members who have cast their vote by remote e-voting prior demat mode 1. Please visit the e-services website of
to the AGM may attend/participate in the AGM through VC with NSDL. NSDL. Open web browser by typing the
but shall not be entitled to cast their vote on such resolution following URL: https://eservices.nsdl.
again. com/ either on a personal computer or
mobile phone
The Board of Directors of the Company have appointed Ms.
2. Once the homepage of e-services
Ashu Gupta of M/s Ashu Gupta & Co., Practicing Company is launched, click on the 'Beneficial
Secretary as Scrutinizer to scrutinize the process of remote Owner' icon under 'Login', available
e-voting and electronic voting at the AGM in a fair and under the 'IDeAS' section.
transparent manner.
3. A new screen will open. You will have to
The voting rights of Members shall be in proportion to their enter your User ID and password. After
shares in the paid-up equity share capital of the Company as successful authentication, you will be
on the Cut-off date. able to see e-voting services.
The Scrutinizer will, after the conclusion of e-voting at 4. Click on 'Access to e-voting' under
e-voting services and you will be able to
the Meeting, scrutinize the votes cast at the Meeting and
see the e-voting page.
votes cast through remote e-voting, make a consolidated
Scrutinizer’s Report and submit the same to the Chairman. 5. Click on Company name or e-voting
The result of e-voting will be declared within two working service provider – NSDL and you will
be re-directed to the NSDL e-voting
days of the conclusion of the Meeting and the same, along
website for casting your vote during the
with the consolidated Scrutinizer’s Report, will be placed on
remote e-voting period or voting during
the website of the Company (www.bhel.com) and on the the meeting.
website of the e-voting agency (www.evoting.nsdl.com).

• If you are not registered for IDeAS Individual 1. Existing users who have opted for Easi /
e-Services: Shareholders Easiest, they can login through their User
holding ID and password. The option to reach
1. The option to register is available at securities in e-voting page will be made available
Annual Review
https://eservices.nsdl.com demat mode without any further authentication. The
with CDSL URL for users to login to Easi / Easiest
2. Select 'Register Online for IDeAS Portal'
are https://web.cdslindia.com/myeasi/
or click on https://eservices.nsdl.com/ home/login or www.cdslindia.com and
SecureWeb/IdeasDirectReg.jsp click on 'New System Myeasi'.
3. Upon successful registration, please 2. After successful login of Easi/Easiest,
follow steps given in points 1 - 5 above you will be also able to see the E
Voting Menu. The Menu will have links
II. E-voting website of NSDL:
of e-voting service provider (ESP) i.e.
Corporate Profile
1. Visit the e-voting website of NSDL. Open NSDL portal. Click on NSDL to cast your
web browser by typing the following vote.
URL: https://www.evoting.nsdl.com/ 3. If you are not registered for Easi/Easiest,
either on a personal computer or mobile the option to register is available at
phone. https://web.cdslindia.com/myeasi/
Registration/EasiRegistration
2. Once the homepage of e-voting system
is launched, click on the 'Login' icon, 4. Alternatively, you can directly access
e-voting page by providing demat
available under the 'Shareholder /
Account Number and PAN from a link
Member' section.
Board's Report
in www.cdslindia.com home page.
3. A new screen will open. You will have The system will authenticate the user
to enter your User ID (i.e. your 16-digit by sending OTP on registered Mobile &
Email as recorded in the demat Account.
demat account number held with NSDL),
After successful authentication, user
password / OTP and a verification code
will be provided links for the respective
as shown on the screen. ESP i.e. NSDL where the e-voting is in
4. After successful authentication, you will progress.
be redirected to the NSDL Depository Individual 1. You can also log in using the login
site wherein you can see the e-voting Shareholders credentials of your demat account
page. Click on Company name or (holding through your depository participant
e-voting service provider – NSDL and securities registered with NSDL / CDSL for the
you will be redirected to the e-voting in demat e-voting facility.
website of NSDL for casting your vote mode) login
2. Once logged in, you will be able to see the
during the remote e-voting period or through their
e-voting option. Once you click on the
voting during the meeting. depository
e-voting option, you will be redirected
participants
III. Shareholders/Members can also to the NSDL / CDSL depository site after
download NSDL Mobile App 'NSDL successful authentication, wherein you
Speed-e' facility by scanning the QR can see e-voting feature.
code mentioned below for seamless
3. Click on Company name or e-voting
voting experience.
service provider-NSDL and you will be
redirected to the e-voting website of
NSDL for casting your vote during the
remote e-voting period or voting during
the meeting.
Important note: Members who are unable to retrieve User
Notice
ID/ Password are advised to use Forgot User ID and Forgot

Password option available at above mentioned website.

Helpdesk for Individual Shareholders holding securities c) For Members EVEN Number followed by Folio
in demat mode for any technical issues related to login holding shares in Number registered with the
through Depository i.e. NSDL and CDSL Physical Form. Company
Login type Helpdesk details For example if folio number is
Individual Members facing any technical 001*** and EVEN is 124661 then
Shareholders issue in login can contact NSDL user ID is 124661001***
holding securities in helpdesk by sending a request at
demat mode with 6. Password details for shareholders other than Individual
[email protected] or call at 022 - shareholders are given below:
NSDL
4886 7000 and 022 - 2499 7000
a) If you are already registered for e-voting, then you
Individual Members facing any technical issue
can use your existing password to login and cast
Shareholders in login can contact CDSL helpdesk
your vote.
holding securities in by sending a request at helpdesk.
demat mode with [email protected] or contact b) If you are using NSDL e-voting system for the first
CDSL at toll free no. 1800 22 55 33 time, you will need to retrieve the ‘initial password’
which was communicated to you. Once you
A.2) Login Method for shareholders, other than Individual
retrieve your ‘initial password’, you need to enter
shareholders holding securities in demat mode and
the ‘initial password’ and the system will prompt
shareholders holding securities in physical mode
you to change your password.
1. Visit the e-voting website of NSDL. Open web browser
c) How to retrieve your ‘initial password’?
by typing the following URL: https://www.evoting.nsdl.
com/ either on a Personal Computer or on a mobile. (i) If your email ID is registered in your demat
account or with the Company, your ‘initial
2. Once the home page of e-voting system is launched,
password’ is communicated to you on your
click on the icon 'Login' which is available under
email ID. Trace the email sent to you from
‘Shareholder/Member’ section.
NSDL from your mailbox. Open the email and
3. A new screen will open. You will have to enter your open the attachment i.e. a .pdf file. Open the
User ID, your Password/OTP and a Verification Code as .pdf file. The password to open the .pdf file is
shown on the screen. your 8 digit client ID for NSDL account, last
4. Alternatively, if you are registered for NSDL e-Services 8 digits of client ID for CDSL account or folio
i.e. IDeAS, you can login at https://eservices.nsdl.com/ number for shares held in physical form. The
with your existing IDeAS login. Once you login to NSDL .pdf file contains your ‘User ID’ and your ‘initial
e-Services after using your login credentials, click on password’.
e-voting and you can proceed to Step 2 i.e. Cast your (ii) If your email ID is not registered, please follow
vote electronically on NSDL e-voting system. steps mentioned below in 'General Guidelines
5. Your User ID details are given below: for shareholders'.
7. If you are unable to retrieve or have not received the
Manner of holding
'initial password' or have forgotten your password:
shares i.e. Demat
Your User ID is:
(NSDL or CDSL) or a) Click on 'Forgot User Details/Password?' (If you
Physical are holding shares in your demat account with
a) For Members who 8-Character DP ID followed by 8- NSDL or CDSL) option available on www.evoting.
hold shares in Digit Client ID nsdl.com.
demat account
with NSDL. For example if your DP ID b) Click on 'Physical User Reset Password?' (If you are
is IN300*** and Client ID is holding shares in physical mode) option available
12****** then your user ID is on www.evoting.nsdl.com.
IN300***12******.
c) If you are still unable to get the password by
b) For Members who 16- Digit Beneficiary ID aforesaid two options, you can send a request
hold shares in at [email protected] mentioning your demat
For example if your Beneficiary ID
demat account account number/folio number, your PAN, your
is 12************** then your user
with CDSL. name and your registered address etc.
ID is 12**************

d) Members can also use the OTP (One Time required to allow Camera and use Internet with a good
Password) based login for casting the votes on the speed to avoid any disturbance during the meeting.
e-voting system of NSDL.
4. Please note that participants connecting from Mobile
8. After entering your password, tick on 'Agree to Terms Devices or Tablets or through Laptop connecting via
Annual Review
and Conditions' by selecting on the check box. Mobile Hotspot may experience Audio/Video loss due
to fluctuation in their respective network. It is therefore
9. Now, you will have to click on 'Login' button.
recommended to use Stable Wi-Fi or LAN Connection
10. After you click on the 'Login' button, Home page of to mitigate any kind of aforesaid glitches.
e-voting will open.
5. Members who need assistance before or during the
Step 2: Cast your vote electronically and join General AGM, can contact NSDL on [email protected] / 022 -
Meeting on NSDL e-voting system 4886 7000 and 022 - 2499 7000 or contact Ms. Pallavi
Mhatre - NSDL at [email protected] .
Corporate Profile
1. After successful login at Step 1, you will be able to see all
the companies 'EVEN' in which you are holding shares 6. Members who would like to express their views or ask
and whose voting cycle is in active status. questions during the AGM may register themselves as
a speaker by sending their request from their registered
2. Select 'EVEN 124661’ of Company to cast your vote
e-mail address mentioning their name, DP ID and Client
during the remote e-voting period and casting your vote
ID / folio number, PAN, mobile number & prospective
during the General Meeting. For joining virtual meeting,
questions (if any) at [email protected] from
you need to click on 'VC/OAVM' link placed under 'Join
August 16, 2023 (9:00 a.m. IST) to August 19, 2023
Meeting'.
(5:00 p.m. IST). Those Members who have registered
3. Now you are ready for e-voting as the Voting page
Board's Report
themselves as a speaker will only be allowed to express
opens. their views / ask questions during the AGM. The
4. Cast your vote by selecting appropriate options i.e. Company reserves the right to restrict the number of
assent or dissent, verify/modify the number of shares for questions and number of speakers, subject to availability
which you wish to cast your vote and click on 'Submit' of sufficient time for smooth conduct of the AGM.
and also 'Confirm' when prompted. 7. Members may also ask questions in writing by sending
5. Upon confirmation, the message 'Vote cast successfully' mail in advance at [email protected],
will be displayed mentioning their name, demat account number/folio
number, email id, mobile number and the requisite
6. You can also take the printout of the votes cast by you views/ questions. The same will be replied by the
by clicking on the print option on the confirmation page. Company suitably.
7. Once you confirm your vote on the resolution, you will 8. Facility to join the meeting shall be opened 15 minutes
not be allowed to modify your vote. before the scheduled time of the AGM and shall be kept
B. Instructions for Members for attending the AGM open throughout the proceedings of the AGM.
through VC & Voting on the day of AGM: 9. The procedure for e-voting on the day of the AGM is
same as the instructions mentioned above for remote
1. Members will be provided with the facility to attend the
AGM through VC through the NSDL e-voting system. e-voting.
Members may access the same by following the steps 10. Only those Members/ shareholders, who will be present
mentioned above for 'Access to NSDL e-voting system'. in the AGM through VC facility and have not cast their
After successful login, Members should click 'VC/ vote on the Resolutions through remote e-voting and
OAVM link' placed under 'Join meeting' menu against are otherwise not barred from doing so, shall be eligible
Company name. The link for VC/OAVM will be available to vote through e-voting system in the AGM.
in Shareholder/Member login where the EVEN of
Company will be displayed. 11. Members who have voted through remote e-voting will
be eligible to attend the AGM. However, they will not be
2. The members who do not have the User ID and Password
Notice
eligible to vote at the AGM.

for e-voting or have forgotten the User ID and Password
may retrieve the same by following the remote e-voting C. General Guidelines for shareholders
instructions mentioned elsewhere in the Notice. 1. Institutional Members (i.e. other than Individuals, HUF,
3. Members are encouraged to join the Meeting through NRI, etc.) are required to send scanned certified true
Laptops for better experience. Further, Members will be copy (PDF Format) of the Board Resolution/ Authority

Letter, etc. together with attested specimen signature(s) (Self-attested Scanned copy of PAN card), AADHAR
of the duly authorized representative(s), to the Scrutinizer (Self-attested Scanned copy of Aadhar Card).
at [email protected] with a copy marked to
ii) In case shares are held in demat mode, please
[email protected]. Institutional shareholders (i.e. other
provide DPID-CLID (16 digit DPID + CLID or 16
than individuals, HUF, NRI etc.) can also upload their
digit beneficiary ID), Name, client master or copy
Board Resolution / Power of Attorney / Authority Letter
of Consolidated Account statement, PAN (self-
etc. by clicking on "Upload Board Resolution / Authority
attested scanned copy of PAN card), AADHAR (self-
Letter" displayed under "e-Voting" tab in their login.
attested scanned copy of Aadhar Card).
2. It is strongly recommended not to share your password
iii) If you are an Individual shareholder holding
with any other person and take utmost care to keep your
securities in demat mode, you are requested to
password confidential. Login to the e-voting website
refer to the login method explained at (point no.
will be disabled upon five unsuccessful attempts to key
A.1) i.e., Login method for Individual shareholders
in the correct password. In such an event, you will need
holding securities in demat mode.
to go through the 'Forgot User Details/Password?' or
'Physical User Reset Password?' option available on iv) In terms of SEBI circular dated December 9, 2020
www.evoting.nsdl.com to reset the password. on e-voting facility provided by Listed Companies,
Individual shareholders holding securities in
3. Any person holding shares in physical form and non-
demat mode are allowed to vote through their
individual shareholders, who acquires shares of the
demat account maintained with Depositories and
Company and becomes a Member of the Company
Depository Participants. Shareholders are required
after sending of the Notice and holding shares as on
to update their mobile number and email ID
the Cut-off date, may obtain the login ID and password
correctly in their demat account in order to access
by sending a request at [email protected]. However,
e-Voting facility.
if he / she is already registered with NSDL for remote
e-voting then he /she can use his / her existing User ID 6. To register/ update your email address with the Company
and password for casting the vote. In case of Individual permanently and to keep receiving all communication
Shareholders holding securities in demat mode and (Notice, Annual Report and the e-voting instructions
who acquires shares of the Company and becomes a along with the User ID & Password) electronically in
Member of the Company after sending of the Notice and future, please follow the below process:
holding shares as on the Cut-off date may follow steps
a) Members holding shares in physical mode may send
mentioned above under 'Login method for Individual
an e-mail request addressed to shareholderquery@
shareholders holding securities in demat mode'.
bhel.in or to M/s Alankit Assignments Limited,
4. In case of any queries, you may refer the Frequently Registrar & Share Transfer Agent of the company
Asked Questions (FAQs) for Shareholders and e-voting at [email protected] alongwith scanned copy of the
user manual for Shareholders available at the download request letter duly signed by the first shareholder,
section of www.evoting.nsdl.com or call on toll free no.: providing the email address, Mobile No., self-
022 - 4886 7000 and 022 - 2499 7000 or send a request attested copy of PAN and a copy of the share
to Ms. Pallavi Mhatre- NSDL at [email protected] . certificate to enable RTA to register their e-mail
address.
5. Members whose email IDs are not registered with
the depositories / Company may send a request to b) Members holding shares in dematerialized mode are
[email protected] for procuring user id and password requested to register/ update their email addresses
for e-voting: with their respective Depository Participant.
i) In case shares are held in physical mode please c) In case of queries in the matter, members are
provide Folio No., Name of shareholder, scanned requested to write to [email protected] or call at
copy of the share certificate (front and back), PAN 011-42541234.

ANNUAL CORPORATE BOARD'S FINANCIAL ADDITIONAL NOTICE
REVIEW PROFILE REPORT STATEMENTS INFORMATION
BHARAT HEAVY ELECTRICALS LIMITED
Annual Report 2021-22
(CIN: L74899DL1964GOI004281)
Regd. Office: BHEL House, Siri Fort, New Delhi-110049
Phone: 011-66337000, Fax: 011-66337428
Website: www.bhel.com, Email: [email protected]
Annual Review
Dear Shareholder(s),
Re: Payment of dividend through National Electronic Clearing Services (NECS)/ Electronic Clearing Services (ECS)
Pursuant to SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, all listed companies shall use any of the
electronic modes of payment facility approved by RBI such as ECS/ NECS/Direct Credit etc. for payment of dividend.
In case you have not already sent the NECS/ ECS/ Bank Account particulars to our Registrar, viz. M/s Alankit Assignments
Limited or to your Depository Participant (DP) (in case of demat holding), we would request you to provide the said particulars
in the format given below to facilitate prompt, safe & correct payment of dividend as and when declared by the Company.
Please ensure that the details submitted by you to the Registrars/ Depository Participant are correct as any error therein
Corporate Profile
could result in the dividend amount being credited to wrong account.
Kindly help us in this endeavour to serve you better.
Yours faithfully
(Rajeev Kalra)
Company Secretary
P.S. In case you are holding shares in demat form, kindly advice your Depository Participant to take note of your Bank
Board's Report
account particulars/ NECS/ ECS/ Direct Credit mandate.
--------------------------------------------------------------------------------------------------------------------------------------------
FORM FOR NECS/ ECS MANDATE/ BANK ACCOUNT PARTICULARS
I / We……………………………………………………………………..…… do hereby authorise BHEL/ my Depository Participant to
 Print the following details on my/ our dividend warrant
 Credit my dividend amount to my Bank account by NECS/ ECS/ Direct Credit
(Strike out whichever is not applicable)
My/ our Folio No …....…........................…..….. or DP ID No …....…........................……….. Client A/c No ………....….............................………..
Particulars of Bank Account:
A. Bank Name : …………………………….......................................…………………………………………………...
B. Branch Name : …………………………….......................................…………………………………………………...
(Address for Mandate only) …………………………….......................................…………………………………………………...
C. 9 digit code number of the bank & branch as : …………………………….......................................…………………………………………………...
appearing on the MICR cheque : …………………………….......................................…………………………………………………...
D. IFSC Code : …………………………….......................................…………………………………………………...
E. Account Type (Saving/ Current) : …………………………….......................................…………………………………………………...
F. Account No as appearing on the cheque book : …………………………….......................................…………………………………………………...
G. STD code & Telephone No. of Shareholder : …………………………….......................................…………………………………………………...
I / we shall not hold the Company responsible if the NECS/ ECS could not be implemented or the Bank discontinues the
NECS/ ECS, for any reason.
M/s Alankit Assignments Limited

UNIT: BHEL …………………………......……………………
Mail to
Notice
Signature of the Shareholder

4E/2, Alankit House, Jhandewalan Extension,
New Delhi-110055
Please attach (i) photocopy of a cheque or a blank cancelled cheque issued by your bank relating to your above account for
verifying the accuracy of the 9 digit code number AND (ii) a copy of your PAN card with this form.

365
Bankers, Auditors & Share Transfer Agent
Bankers Auditors
Axis Bank Ltd. M/s ABP & Associates, New Delhi
Bank of Baroda M/s PSMG & Associates, New Delhi
Canara Bank M/s S. L Chhajed & Co LLP, Bhopal
Export-Import Bank of India M/s SRN & Associates, Trichy
HDFC Bank Limited M/s Chandran & Raman, Bengaluru
ICICI Bank Limited M/s M. Anandam & Co, Hyderabad
IDBI Bank M/s Gopalaiyer and Subramanian, Chennai
Indian Bank
Indian Overseas Bank Cost Auditors
Indusind Bank M/s Shome & Banerjee, Delhi
Kotak Mahindra Bank M/s Vijender Sharma & Co., Delhi
Punjab National Bank M/s KRJ & Associates, Hyderabad
RBL Bank Ltd. M/s Subramanian Rajagopal & Associates, Tiruchirapalli
State Bank of India M/s Murthy & Co. LLP., Bengaluru
The Federal Bank Limited M/s Paliwal And Associates, Lucknow
The Hongkong and Shanghai Banking Corporation Limited M/s Uppalapati & Associates, Visakhapatnam
Union Bank of India
Yes Bank Limited
Share Transfer Agent

Alankit Assignments Limited
Alankit House, 4E/2, Jhandewalan Extension, New Delhi-
110055
Tel : 011-4254 1234
Fax : 011-2355 2001
Registered Office
BHEL House, Siri Fort, New Delhi-110049 (India)
CIN: L74899DL1964GOI004281
Phone: 011-66337000, Fax: 011-66337428
Website : www.bhel.com E-mail: [email protected]

379
NOTES
NOTES

NUCLEAR POWER ELECTRICITY: Building
Reliable and Sustainable base-load solution
Bharat Heavy Electricals Limited (BHEL) dispatched as Advanced Heavy Water Reactor (AHWR), and has been
44th Nuclear Steam Generator from Trichy Plant and a partner for five decades in the development of the
retained its position as the prime indigenous supplier indigenous Nuclear Power Programme.
of Nuclear Steam Generators for India’s Nuclear Power The first stage of the indigenous nuclear power
Programme. The Steam Generator was dispatched for programme of the country has attained maturity with
700 MWe unit at NPCIL’s Gorakhpur Site in Haryana. 18 operating PHWRs. Out of these, 12 PHWRs of the
BHEL has been catering to the nation's Nuclear Indigenous Nuclear Power capacity are equipped with
Programme since 1976 by way of engineering, BHEL-supplied Steam Turbine Generator sets (10 units of
manufacturing, testing and supply of critical nuclear 220 MW each and 2 units of 540 MW).
components like Reactor Headers, Steam Generators, BHEL has dedicated infrastructure and skilled manpower
Steam Turbine Generators, Heat Exchangers and to address the special design, manufacturing and testing
Pressure Vessels. requirements, complying with international codes and
Notably BHEL is the only Indian supplier of Nuclear standards for various components/equipment of Nuclear
steam turbines and generators, and the only Indian power plants. BHEL has proven its capability for both
company associated with all the three stages of the primary (reactor headers, end shields, etc.) and secondary
Indian Nuclear Power Programme — the first stage as (turbine, generator, heat exchangers, etc.) side equipment
Pressurised Heavy Water Reactors (PHWR), the second for Nuclear power projects.
stage as Fast Breeder Reactor (FBR) and the third stage
BHEL is proud to be associated Chandrayaan 3 is DID YOU KNOW
with ISRO (Indian Space equipped with BHEL
Majority of satellites
Research Organistion) manufactured
launched by ISRO are
since TWO DECADES Batteries for Lander
equipped with BHEL -
for powering India’s Module & Propulsion
supplied space grade
space aspirations Module and Titanium
solar panels and space
Propellent Tank
grade lithium-ion
batteries
BHEL - Contributing to the Nation's self-reliance in the Aerospace sector

Registered Office : BHEL House, Siri Fort, New Delhi - 110049, India
Corporate Identity Number : L74899DL1964GOI004281
www.bhel.com
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ANNUAL REPORT

345 ADDITIONAL INFORMATION

349 Product Profile

29 Capacity Building for the Nation

53 Achieving sustainability with Air Cooled Condenser

63 Aatmanirbharta Through Indigenous Technology of Coal Gasification

167 Greening Grid:Establishing synergy between Renewable and Coal-based Power

It gives me pleasure to share the 59th annual report

4 BHARAT HEAVY ELECTRICALS LIMITED

ANNUAL REPORT 2022-23 5

6 BHARAT HEAVY ELECTRICALS LIMITED

Green BHEL/Harit BHEL

Skill Development Initiatives

in the country) and extension centres at Varanasi, Haridwar,

ANNUAL REPORT 2022-23 7

Shri Jai Prakash Srivastava Shri Krishna Kumar Thakur

8 BHARAT HEAVY ELECTRICALS LIMITED

Dr. K Sivaprasad Dr. Lekhasri Shri Ramesh Patlya

ANNUAL REPORT 2022-23 9

10 BHARAT HEAVY ELECTRICALS LIMITED

Dhiman R Veerabahu Rajeev Kalra

ANNUAL REPORT 2022-23 11

Oy, Finland for supercritical

`691 Crore invested in Successfully

14 BHARAT HEAVY ELECTRICALS LIMITED

REVENUE OTHER OPERATIONAL INCOME MANPOWER (NOS) AND

OTHER EXPENSES TO REVENUE % EBITDA INVENTORY POSITION (`CRORE)

16 BHARAT HEAVY ELECTRICALS LIMITED

CURRENT RATIO % LIQUIDATION OUT OF TOTAL POTENTIAL LIQUIDATION OUT OF CURRENT

Project centric approach

74% 75% 75% 86 86

TRADE RECEIVABLE TRADE RECEIVABLE MARKET NET WORTH MARKET CAPITALISATION

ANNUAL REPORT 2022-23 17

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ANNUAL REPORT 2022-23 19

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turbines in the country and has been involved in all three

ANNUAL REPORT 2022-23 21

Manufacturing Plants/ Unit Locations

1. Electronics Division (EDN)

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Did you know?

Technology for a sustainable future

Growing with society • Collaborative R&D with leading

26 BHARAT HEAVY ELECTRICALS LIMITED

ANNUAL REPORT 2022-23 27

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ANNUAL REPORT 2022-23 29

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State of Company Affairs

ANNUAL REPORT 2022-23 31

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ANNUAL REPORT 2022-23 33

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ANNUAL REPORT 2022-23 35

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The Auditors’ Report on Standalone and Consolidated Appreciation and Acknowledgements

Auditors, Branch Auditors, Secretarial Auditor and Cost

ANNUAL REPORT 2022-23 37

Dr. Nalin Shinghal