Your Board of Directors has pleasure
in presenting 62^nd Annual Report of the
Company along with Audited Financial
Statement for the year ended 31.03.2026 as
under:

Financial results:    (f in crore)

Value of Production

Value of Production is f 4239 crores as
against f 3905 crores in the previous year,
up by 8.55%.

• Material consumption as a % of VoP is
increased by 2.59% over the previous
year

Exports:

Your company made exports aggregating
f 176.50 crores (which includes physical
exports of f 75.53 crores and deemed
export of f 100.98 crores) and got export
incentive of f 1.69 crores during FY 2025-26
as against exports of f 298.82 crores (which
includes physical exports of f 42.21 crores
and deemed export of f 256.61 crores) and
export incentive of f 3.52 Crores during the
previous year.

Order Book Position:

The order book position of your Company as
on 01.04.2026 is f 15,896 crores as against
f 14,610 crore orders in the previous year.
The Order book comprises of three business
verticals, i.e., Mining & Construction,
Defence & Aerospace and Rail & Metro.

Performance vis-a-vis MoU:

Performance of your Company, in terms of
the Memorandum of Understanding (MoU)
signed with the Department of Defence
Production, Ministry of Defence (MoD),
Government of India, was rated as ‘Very
Good’ for the financial year 2024-25 and the
rating for the financial year 2025-26 is under
self-evaluation.

Transfer to General Reserve

During the year under review, your Company
has not transferred any amount to General
Reserve.

Dividend:

Your Board of Directors approved an interim
dividend of f 2.50 per equity share i.e., 50%
on equity shares of f 5 each on 06.02.2026
which was distributed among the eligible
shareholders. Additionally, your Board
of Directors have further approved a 2nd
interim dividend of f 2.30 per equity share
i.e., 46% on equity shares of f 5 each on
29.05.2026 which was distributed among
the eligible shareholders.

Further, the Board of Directors have
recommended a final dividend of f 12.28 per
equity share i.e., 246% on equity share of
f 5 each at its meeting held on 07.08.2026
aggregating to a total dividend of f 17.0870
(i.e. 342% Paid-up value of equity shares)
for FY 2025-26, keeping in view the future
prospects of the Company and at the
same time meeting the aspirations of the
shareholders.

Your Company formulated a ‘Dividend
Distribution Policy’ which includes
the parameters and circumstances in
determining the distribution of dividend to its
shareholders and/or retaining profits earned
by the Company in terms of Regulation 43A of
the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

The said policy is posted on
the Company’s website https://
www.bemlindia.in/writereaddata/
Downloads/201806251810Dividend%20
Distribution%20Policy.pdf.

Change in the Nature of Business:

There was no change in the nature of
business of the Company during the year.

Material Change/ Commitment
affecting the Financial Position:

No material change/ commitment has
occurred affecting the financial position of
the Company subsequent to the financial
year ended 31.03.2026 till the date of this
report.

Capital Structure:

During the year under review, the Company
undertook sub-division / split of its exiting
equity shares from face value of f 10/- each
to f 5/- each in the ratio of 1:2, pursuant to
the approvals received from the DIPAM and
shareholders, in line with the applicable
provisions.

Consequent upon the aforesaid sub¬
division, the authorized share capital of the
Company comprising 10,00,00,000 equity
shares of f 10/- each was sub-divided into

20.00. 00.000 equity shares of f 5/- each.
Further, the Issued Share Capital comprising

4.19.00. 000 equity shares of f 10/- each
(including 2,55,500 forfeited equity shares)
was sub-divided into 8,38,00,000 equity
shares of f 5/- each. The Paid-up Share
Capital comprising 4,16,44,500 equity
shares of f 10/- each was sub-divided into

8.32.89.000.

Accordingly, the aforesaid sub-division
resulted in a change in the capital structure
of the Company.

Finance:

The working capital requirements were met
from the internal accruals and credit facilities
availed from banks. There was no overdue
instalment of principal and/ or interest to the
banks.

M/s Care Ratings have reaffirmed CARE
AA-; Stable/CARE A1+ for fund based

facilities (Short term borrowings) and
CARE AA-; Stable for non-fund based bank
guarantee (Long term bank facilities) & letter
of credit facilities for an amount of f 5,500
crores (wherein f 4,500 crores are Secured
Working Capital limits and f 1000 crores are
Unsecured Working Capital limits).

Details of credit ratings is being
communicated to Stock Exchanges and
the same are placed on Company’s website
https://www.bemlindia.in/investors/credit-
rating.

Pursuant to SEBI notification, BEML doesn’t
qualify under the eligibility criteria as Large
Corporate (LC) for the year 2025-26 as per
the framework provided. As mandated by the
Ministry of Corporate Affairs, the financial
statements for the year ended 31.03.2026
have been prepared in accordance with
the Indian Accounting Standards (Ind-AS)
notified under Section 133 of the Companies
Act, 2013 read with the Companies
(Accounts) Rules, 2014. The estimates
and judgments relating to the Financial
Statements are made on a prudent basis,
so as to reflect in a true and fair manner, the
form and substance of transactions and
reasonably present the Company’s state of
affairs, profits and cash flows for the year
ended 31.03.2026.

Internal Financial Controls:

The Company has various manuals such
as Accounts, Cost Accounting and Pricing,
Stores, Purchase, Internal Audit etc. For
easy reference, the manuals are available
in “BEML Bulletin Board” an internal portal,
wherein the soft copies of Manuals are
loaded. The soft copy of the Manuals can be
viewed by Executives and Non-Executives
concerned for compliance thereof. The

manuals are in line with the delegation of
powers and are being updated periodically.
The changes made, if any, to the manuals
are circulated among all concerned and also
updated in the portal.

The internal audit process is designed to
review the adequacy of internal control
checks in the system and covers all
significant areas of the Company’s
operations. Further the company has put in
place adequate Internal Financial Controls
(IFCs) with respect to Financial Statements.
The adequacy of IFCs over financial
reporting is covered by the Statutory
Auditors in their Audit Report. In addition,
the details of the IFCs are included under the
heading ‘Internal control systems and their
adequacy’ in the Management Discussion
& Analysis Report which forms part of this
report.

Fixed Deposits:

The Company did not accept any fixed
deposits during the year, and there was no
outstanding Fixed Deposits at the beginning/
end of the year. Accordingly, there was no
default in payment of deposits/ interest
thereon.

Particulars of Loans, Guarantees or
Investments:

As per the provisions of Section 186 of the
Companies Act, 2013, the details of Loans,
Guarantees and Investments are given in
the notes to the Financial Statement.

Strategic Disinvestment:

The Ministry of Defence (MoD), vide letter
dated 01.12.2016, communicated that the
Cabinet Committee on Economic Affairs
(CCEA) had accorded “in-principle” approval

for the strategic disinvestment of 26% equity
in the Company out of the Government of
India’s shareholding of 54.03%, along with
transfer of management control.

In connection with the strategic
disinvestment process, BEML appointed
M/s Deloitte Haskins & Sells LLP as
consultants for advising, undertaking, and
implementing the demerger of identified
surplus/non-core assets of the Company
that were not proposed to form part of the
strategic disinvestment.

For the purpose of demerger, transfer,
and vesting of identified surplus/non-core
assets, BEML incorporated a wholly owned
subsidiary, BEML Land Assets Limited
(BLAL).

Subsequently, a petition was filed before the
Ministry of Corporate Affairs (MCA) seeking
approval of the Scheme of Arrangement.
The MCA, vide order dated 28.07.2022,
approved the Scheme of Arrangement for
demerger into BEML Land Assets Limited
(Resulting Company).

In terms of the approved Scheme of
Arrangement, the identified surplus and non¬
core assets of BEML Limited were transferred
and vested in BEML Land Assets Limited at
their book value, with the appointed date of
demerger being 25.08.2022.

Further, transfer deeds relating to assets
located at Bhopal, Delhi, Chennai, and
Kochi were executed between BEML and
BLAL before the respective Offices of the
Sub-Registrars on 21.03.2025, 08.04.2025,

21.05.2025, and 28.04.2026, respectively.
Execution of transfer deeds in respect of
assets situated in other States is expected to
be completed in due course.

Mysuru Land (Township & Factory)

KIADB issued the Revised Possession
Certificate/e-Khata for 21.315 acres of
Township land on 15.03.2025 and thereafter
executed the Sale Deed in favour of BEML
on 30.12.2025.

Factory Land : Based on the available
possession certificates, the Sale Deed
in respect of 452 acres and 16 guntas of
factory land was executed on 28.11.2024.
Thereafter, the e-Khata was transferred from
KIADB to BEML Limited on 06.03.2025.

BGML Land

BEML intends to (outright) purchase 28.35
acres of land from BGML has been approved
by the Hon’ble Court and the requisite
amount has been duly deposited with the
court.

It has been observed that, out of the total
extent of 28.35 acres, few acres are presently
subject to an ownership dispute between the
State Government and BGML. BEML has
established a test track on the said portion of
land and has been utilizing the same since
2004.

The matter is presently under discussion
between the State Government and BGML.
Upon resolution of the dispute, execution of
the Sale Deed in favour of BEML by BGML
will be completed.

The registration of the sale deed is currently
in progress.

Directors & Key Managerial
Personnel:

(1) Appointment/ re-appointment of
Independent Directors (IDs)

During the year 2025-26, Shri Siva Makutam
and Shri Vikas Kakatkar were appointed

as Independent Director for instead the
period of 1 year w.e.f 17.04.2025. In terms
of section 149 of the Companies Act, 2013,
the provisions of section 152(6) and (7) in
respect of retirement of directors by rotation
shall not be applicable to IDs. Pursuant to
Schedule IV of the Companies Act, 2013,
the appointment/ re-appointment of the
Independent Directors would be formalized
through a letter of appointment setting out
the terms and conditions in case of their
appointment, which is also placed on the
web-site of the Company at www.bemlindia.
in.

(2)    Statement on declaration by
Independent Directors

Independent Directors had furnished
necessary declarations, in terms of Section
149(7) of the Companies Act, 2013,
stating that they had fulfilled the criteria of
independence as provided under Section
149(6) of the said Act and Rule 6 of the
Companies (Appointment and Qualification
of Directors) Rules, 2014 subject to the
exemptions granted to Government
Companies. The Board reviewed the said
declarations.

(3)    Change of Directors and Key Managerial
Personnel

In terms of Article 97 of the Articles of
Association of the Company, the President of
India is vested with the power to appoint the
Directors of the Company from time to time
and also shall determine the term of office
of such Directors. Accordingly, the following
appointments / cessations on the Board of
the Company were effected during FY 2025¬
26 as per the directives of the President of
India:

(i)    Smt Nishtha Upadhyay ceased to be
Government Nominee Director of the
Company w.e.f. 14.07.2025 vide MoD
letter no. 8(32)/2019-D(Coord/DDP)
Dated 14.07.2025.

(ii)    Smt Meera Mohanty (DIN: 03379561),
was appointed as Government Nominee
Director of the Company vide MoD
letter no. 8(32)/2019-D(Coord/DDP)
Dated 14.07.2025. She assumed charge
on 14.07.2025. Further, she ceased
to be Government Nominee Director
of the Company vide MoD letter no.
8(29)/2026-D(Coord/DDP) dated

05.06.2026.

(iii)    Shri Sachin Dighde (DIN: 11306396),
was appointed as Director (Defence &
Aerospace Business) of the Company
vide MoD letter No. 8(1)/2024-D (BEML)/
DP/ (M&P) dated 14.07.2025. He took
charge on 18.09.2025.

(iv)    Shri Bipin Kumar Gupta (DIN: 00293673)
who was appointed as Independent
Directors of the Company vide MoD
letter dated 10.02.2023, ceased to be the
Independent Directors on completion of
his tenure of 3 years on 09.02.2026.

(v)    Shri Vikas Kakatkar (DIN 02372234) and
Shri Siva Makutam (DIN 09450599),
who were re-appointed as Independent
Directors of the Company vide MoD
letter dated 17.04.2025, ceased to be the
Independent Directors on completion of
their tenure of 1 year on 16.04.2026.

(vi)    Shri Dinesh Mahur (DIN- 10862645),
was appointed as Government Nominee
Director of the Company vide MoD letter
no. 8(29)/2026-D(Coord/DDP) Dated

05.06.2026.

Shri Shantanu Roy, Chairman & Managing
Director (DIN: 10053283) and Shri Rajeev
Kumar Gupta, Director (DIN: 10803828)
are liable to retire by rotation at the ensuing
annual general meeting and being eligible,
offer themselves for re-appointment.

(4)    Remuneration of Director:

As per the provision of section 197(12) of
Companies Act, 2013 read with rule 5 of
Companies (Appointment and Remuneration
of Managerial Personnel) Rule, 2014, every
listed company is required to disclose the
ratio of remuneration of each Director to
the median employees’ remuneration and
details of employees receiving remuneration
exceeding limit as prescribed from time to
time in the Board Report.

However, as per notification dated 5^th
June’ 2015 issued by MCA, Government
Companies are exempted from complying
with the provision of section 197 of
Companies Act, 2013. Therefore, such
particulars have not been included in Board
Report.

Government Nominee Directors were
neither paid any remuneration nor sitting fee
for attending Board/ Committee meetings.
Independent Directors are paid sitting fee of
f 25,000 per meeting of the Board/
Committee of the Board attended by them.

Neither there was payment of commission
to the Board of Directors nor any stock
option scheme offered to them during the
year. Further, none of the Directors had any
pecuniary relationship nor entered into any
related party transactions with the Company
during the year.

(5)    Number of meetings of Board:

During the year, nine meetings of the Board
were held on 28.04.2025, 09.05.2025,

23.05.2025,    06.06.2025,    21.07.2025,

11.08.2025,    29.09.2025, 05.11.2025 and

06.02.2026,    Requirements on number
and frequency of meetings, in terms of
Section 173(1) of the Companies Act, 2013,
Regulation 17(2) of Listing Regulations,
and Para 3.3.1 of the DPE Guidelines, were
complied with in full.

(6) Directors’ Responsibility Statement:

Pursuant to section 134(3)(c) and 134(5)
of the Companies Act, 2013, your Directors
state that,

(a)    in the preparation of the annual accounts
for the year ended 31.03.2026, the
applicable accounting standards
have been followed along with proper
explanation relating to material
departures;

(b)    the directors had selected such
accounting policies and applied them
consistently and made judgments and
estimates that are reasonable and
prudent so as to give a true and fair view
of the state of affairs of the Company at
the end of the financial year 2025-26
and of the profit of the Company for that
period;

(c)    the directors had taken proper and
sufficient care for the maintenance
of adequate accounting records in
accordance with the provisions of the
Companies Act, 2013 for safeguarding
the assets of the Company and for
preventing and detecting fraud and other
irregularities;

(d)    the directors had prepared the annual
accounts on a going concern basis;

(e)    the directors had laid down internal
financial controls to be followed by
the company and that such internal

financial controls are adequate and were
operating effectively.

(f) the directors had devised proper systems
to ensure compliance with the provisions
of all applicable laws and that such
systems were adequate and operating
effectively.

(7) Board Evaluation:

The Board of Directors of the
Company comprises Functional Directors,
Government Nominee Directors and
Independent Directors appointed by
the Government of India from time to
time pursuant to Article 97 of Articles of
Association of the Company. Further, the
Government communication also indicates
the detailed terms and conditions of their
appointment based on applicability of the
relevant rules of the Company.

In view of the above, the performance of
all Functional Directors and Government
Nominee Director is being evaluated by the
Administrative Ministry every year based
on own evaluation methodology. Further,
considering the educational qualifications,
age, rich and varied experience of the
applicants, the Administrative Ministry/
Department would appoint the IDs on the
Board on the recommendation of Search
Committee after obtaining approval of
competent authority. In addition, the
assessment/ evaluation of performance
of Independent Directors who will be
completing their tenure/ seeking extension
was undertaken by the Department of
Public Enterprises through Administrative
Ministry periodically. As per requirement
of SEBI (LODR), Independent Directors in
their meeting held on 26.12.2025 undertook
the evaluation of performance of functional
directors.

Committees of the Board

The following mandatory Committees
required under Companies Act, Listing
Regulations, DPE guidelines/ MoD
Directives are constituted by the Board to
function according to their respective roles
and defined scope:

•    Audit Committee

•    Nomination and Remuneration
Committee

•    Stakeholders’ Relationship Committee

•    Risk Management Committee

•    Corporate Social Responsibility and
Sustainability Committee.

•    Procurement Committee

•    Share Certificate Committee

•    Technology Committee

The details of the Committees along with
their composition, number of meetings held
and attendance at the meetings are provided
in the Corporate Governance Report as
annexure to the Board Report.

Enterprise Risk Management:

It terms of Section 134 of the Companies
Act, 2013, Regulation 17 & 21 of the
Listing Regulations and Chapter 7 of DPE
Guidelines, your Company has constituted
Risk Management Committee (RMC)
and implemented Board approved “Risk
Management Policy (RMP)” Further, the
composition, reconstitution and the terms
of reference in line with quorum, minimum
number of meetings, gap between two
meetings of RMC and Powers, roles and
responsibilities of RMC as duly approved by
the Board are incorporated/ amended in the
RMP as per the SEBI Listing Regulations.
With the induction of Independent Director,
all Business Group Directors, Director
(Finance), Director (HR) and Independent

Director will be the members of the
Committee and senior most Functional
Director will head the Committee. During
the year, RMC met twice 28.04.2025 &

04.11.2025.

The Corporate Risk Committee prepares
the key risks along with mitigation plans and
report to the Risk Management Committee
constituted in terms of Regulation 21 of the
Listing Regulations. The said key risks and
mitigation plans will be placed before Audit
Committee, which recommends it for review
and approval of the Board.

The Board reviews the key risks along with
mitigation plans and monitor the status
on risk management periodically. The
RMP is placed on the Company’s website
https://www.bemlindia.in/writereaddata/
Downloads/202003302233Risk_
Management Policy.pdf.

Renewable Energy Development,
Energy Conservation, Research
& Development, Technology
Absorption and foreign exchange
earnings and outgo:

In terms of Section 134 of the Companies
Act, 2013 read with Rule 8 of the Companies
(Accounts) Rules, 2014, the information on
energy conservation, technology absorption
and foreign exchange earnings and outgo
including the products developed by the
Company during the year is placed at
Annexure-I.

Related Party Transactions:

Pursuant to Regulation 23 of the Listing
Regulations, your Company has formulated
a “Policy on Related Party Transactions”, to
regulate transactions entered into between
the Company and its related parties.
Further, in terms of Regulation 46(2)(g) of
the Listing Regulations, the said policy is

placed on the web-site of the Company at
https://www.bemlindia.in/writereaddata/
Downloads/202003301756Related Party
Transactions_Policy.pdf

During the year 2025-26, all related party
transactions (RPT) that were entered into
with the related parties were fair, transparent
and at arm’s length basis and also in the
ordinary course of business of the Company.
However, pursuant to provisions of section
188 of the Companies Act, 2013, RPTs
between two government companies are
exempted.

The said related party transactions were
also duly considered and noted by the Audit
Committee. Information as required under
section 188 in Form AOC-2, pursuant to
Section 134(3)(h) of the Companies Act,
2013 read with Rule 8(2) of the Companies
(Accounts) Rules, 2014, is attached to this
report as Annexure-ll.

Compliance of applicable
Secretarial Standards:

Your Company has complied with the
provisions of applicable secretarial
standards with respect to Meetings of
Board of Directors (SS-1) and General
Meetings (SS-2) issued by the Institute of
Company Secretaries of India in terms of
Section 118(10) of the Companies Act 2013.
Further, as stipulated in Standard 9 of SS-1,
a statement on compliances of applicable
Secretarial Standards is included in the
Report of the Board of Directors.

Corporate Governance Report:

In terms of Regulation 34 of the Listing
Regulations and Chapter 8 of the DPE
Guidelines, a report on Corporate
Governance (CG) compliance is included
in the Board’s Report. M/s MMA Partners &
Associates, Practicing Company Secretaries
(PCS) have issued a Compliance Certificate

on the same. In terms of Para 8.2.3 of the
DPE Guidelines of CPSEs, the Company’s
compliance level as per the grading report on
Corporate Governance is rated as ‘Excellent’
with 93.15% (average for 4 quarters) for
FY 2025-26 based on self-evaluation. The
aforesaid report on Corporate Governance
along with Compliance Certificate is placed
at Annexure-lll.

Management Discussion and
Analysis Report:

In terms of Regulation 34 of Listing
Regulations and Chapter 7 of the DPE
Guidelines, report on Management
Discussion and Analysis Report is placed at
Annexure-lV.

Business Responsibility &
Sustainability Report:

A Business Responsibility & Sustainability
Report (BRSR) for FY 2025-26 in terms
of Regulation 34 of Listing Regulations,
describing the initiatives taken by the
Company on environmental, social and
governance perspective, in the format as
specified by SEBI from time to time is placed
at Annexure-V.

Corporate Social Responsibility &
Sustainability Committee:

Your Company has constituted Corporate
Social Responsibility & Sustainability
(CSR) Committee and implemented Board
approved “CSR Policy” pursuant to Section
135 of the Companies Act, 2013, read with
Companies (Corporate Social Responsibility
Policy) Rules, 2014 as amended from
time to time and DPE Guidelines on MoU.
Further, the composition, reconstitution
and enhanced terms of reference as duly
approved by the Board are incorporated in
the CSR Policy.

On 31.03.2026, the Committee comprises
of Shri Vikas Kakatkar, Independent Director
as Chairperson, Shri Siva Makutam,
Independent Director, Shri Anil Jerath,
Director (Finance) and Shri Rajeev Kumar
Gupta, Director (Rail & Metro Business)
as members. The CSR Committee met
three times during the year on 28.04.2025,

10.08.2025, and 03.11.2025. An amount

of f 7.27 crores was spent during FY 2025¬
26 towards CSR activities which was more
than 2% as stipulated under the Companies
Act, 2013 and was in line with the Board’s
approved purposes and the same was
certified by the Chief Financial Officer/
Director (Finance) and Chairman of CSR
Committee. Annual Report on CSR activities
for FY 2025-26 is placed at Annexure-VI.

Demat Escrow Account:

voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

Vigilance:

The Vigilance Department functions under
the leadership of an independent, full¬
time Chief Vigilance Officer. Dr. Sajid Farid
Shapoo, IPS, assumed charge as CVO in
November 2024. The department serves
as an extended arm of the Central Vigilance
Commission and acts as a vital link between
the Company, the Administrative Ministry,

and the CBI. Vigilance is treated as an
integral managerial function, with a focus on
prevention, detection, and enforcement.

Complaint Handling & Preventive Vigilance:

All complaints are processed in strict
accordance with the Company’s Complaint
Handling Policy and CVC guidelines. Only
cases with a clear “vigilance angle” are
registered and investigated.

Preventive vigilance measures included
scrutiny of purchase orders, contracts, TA/
DA and medical claims, annual property
returns, store/inventory management,
vendor assessment, weighbridge
operations, bill clearance, and product
quality. Recommendations were made to
management for systemic improvements in
procurement, contract administration, and
process efficiency.

Technology & Systemic Initiatives:

In line with CVC’s emphasis on digitisation,
the Company launched the BEML-
Vigilance Information Management
System (B-VIMS). This digital platform
standardises and streamlines all vigilance
functions, enabling real-time monitoring,
enhanced accountability, and transparent
documentation across the organisation.
The updated Vigilance Manual 3.0 was
released on 29^th July 2025 by Shri Rishi
Kumar Shukla, IPS, Former Director, CBI.

Vigilance Awareness Week2025:

VAW-2025 was observed from 27^th October
to 2^nd November 2025 with the theme
“Vigilance: Our Shared Responsibility”, as
per CVC directives. Key initiatives included:

>    Integrity Pledge: Administered to
employees, students, faculty, and
Gram Sabha participants.

>    Outreach: Awareness programs
in schools and colleges reached
4,690 students. Integrity Clubs

were inaugurated at Sri Bhagawan
Mahaveer Jain College, KGF and
St. Joseph’s Indian High School,
Bengaluru.

>    Public Engagement: Signature
campaigns and selfie spots on
the VAW theme were organised at
prominent public locations to involve
citizens.

>    Capacity Building: Guest lectures
by eminent personalities and in¬
house sensitisation programs
covered 1,339 employees.

>    Vendor Meet: Held on 30^th October
2025 across all divisions via video
conferencing with 280 vendors
participating. CMD and Directors
addressed vendor queries and
grievances directly.

>    Publications & Competitions:

Released VigKiran Ver.14, the in¬
house vigilance magazine. The
Bengaluru Complex vigilance team
organised a first-of-its-kind reel¬
making competition for employee
dependents.

Commitment:

The Company remains committed to
fostering a culture of transparency, integrity,
and accountability. Through technology-
led initiatives, proactive outreach, and
continuous systemic improvements,
Vigilance continues to be a shared
responsibility across all stakeholders.

Whistle Blower policy:

In terms of the provisions of Section 177 of the
Companies Act, 2013, Regulation 22 of the
Listing Regulations and Chapter 4 of the DPE
Guidelines, your Company has formulated
“Vigil Mechanism/ Whistle Blower Policy” for
directors and employees to report genuine
concerns. The said policy is placed on the
Company’s website https://www.bemlindia.
in/wp-content/uploads/2023/05/Whistle_
Blower Policy.pdf. The policy provides for
adequate safeguards against victimization of
director/s or employee/s or any other person
who avail the said mechanism and also
provides for direct access to the Chairperson
of the Audit Committee in appropriate or
exceptional cases. The Audit Committee
reviews the functioning of the whistle blower
mechanism periodically as per Schedule II
(A)(18) of Listing Regulations and Chapter
4 of DPE Guidelines. As per the said policy,
none of the employees have been denied
access to Audit Committee.

Quality:

BEML views quality improvement as a core
business strategy and remains proactive in
enhancing product and service excellence.
The Company’s Quality Policy, rooted in
Total Quality Management (TQM), ensures
that products, services, and processes
consistently meet stringent standards
and performance criteria. A dedicated
Quality Department leads and drives the
organization’s TQM initiatives.

All manufacturing divisions are certified
under the latest Quality Management
System (QMS) standard, ISO 9001:2015.
Additionally, all divisions comply with the
Environmental Management System
(EMS) standard ISO 14001:2015 and the
Occupational Health & Safety standard ISO
45001:2018.

The Aerospace Division—Mysore Complex
and Bangalore    Complex—has    been

accredited with AS 9100D certification,
demonstrating adherence to global
aerospace quality standards.

BEML has been recognized with the Gold
Award in the PSU category at the 5th Edition
of the EEPC India Quality Awards, reflecting
its commitment to excellence.

The organization actively promotes
employee involvement in quality initiatives
through Quality Control Circles (QCC).
During 2025-26, three teams participated
in national-level competitions, and all were
adjudged “Par Excellence.” Additionally,
one Quality Circle team represented the
company at the International Convention
on Quality Control Circles (ICQCC) 2025 in
Taipei, Taiwan, where it won a Gold Award.

Key Quality Improvement Initiatives
(2025-26):

•    The Quality Assurance system is
continuously monitored across all
manufacturing divisions to drive
improvements in design, processes, and
systems.

•    Cross-functional team (CFT) initiatives
undertaken across divisions include:

1.    Eight executives were trained
and certified as Six Sigma “Green
Belt” professionals, covering all
manufacturing units.

2.    A total of 368 Kaizen projects were
implemented.

3.    170 quality improvement projects
were executed to reduce rejections.

4.    279 jigs and fixtures were added or
upgraded to enhance manufacturing
quality.

5.    424 vendor visits and process audits
were conducted to improve incoming
material quality.

•    Bangalore Complex is accredited with
EN 15085 certification for welding of
Railway Vehicles.

•    Regular field failure review meetings are
conducted to address quality and service
issues. Corrective and preventive
actions are systematically implemented
and monitored for closure.

•    To strengthen quality control and ensure
measurement consistency, 93 digital
measuring instruments were procured
and deployed across all manufacturing
units.

•    BEML is implementing QA4.0 across
all manufacturing units, highlighting its
commitment to Quality Excellence and
Digital Innovation.

Make in India Initiatives and
Indigenization of products

BEML is committed to the “Make in India”
(Atmanirbhar Bharat) policy and considers
it an opportunity to boost Indigenisation of
Equipments to achieve cost benefits and
also complement the strengths of private
sector to build a strong industrial base.

BEML has been systematically indigenizing
the products through extensive R&D efforts
and has achieved 90% in the mainline Mining
& Construction products, Rail coaches &
EMU’s, over 97% in High Mobility vehicles
HMV 8x8 & HMV 6X6 and over 65% in Metro
cars. Further efforts are underway to reach
higher levels.

BEML has nominated a Chief Indigenisation
officer for Make in India drive and list of items
for indigenization are hosted on Srijan portal
website: www.srijan.gov.in

Further to emphasize on Indigenization
Our Company has formed a Separate
Indigenisation Vertical consisting members
from Planning, Materials, Quality & R&D for
focus on Indigenisation” in each SBU.

Under this initiative Company has designed

and developed products as follows:

• BEML Unveils India’s first Indigenous
35 - Ton Electric Dump Truck,

Advancing Green Mining Solutions. The
development marks a major step towards
sustainable mining & infrastructure
solutions. The indigenously designed
electric dump truck is engineered to
deliver high productivity with zero tailpipe
emissions. Built to global standards
the platform aligns with India’s ESG
commitments and carbon reduction
goals. While reinforcing BEML’s focus on
clean and future ready technologies. The
vehicle is equipped with a Regenerative
Braking System (RBS), enabling energy
recovery during operations, particularly
in downhill conditions. A state of the art
Battery Thermal Management System
(BTMS), featuring liquid cooling, ensures
optimal temperature regulations,
enhancing safety and extending the life
of the 300 KWh Lithium ion battery.

In addition to its environment
advantages, the platform offers
substantial economic benefits, including
upto 60-70% savings in energy costs &
40-60% reduction in overall operating
costs, lower maintenance requirements,
owing to fewer mechanical components,
further enhance its value proposition.
Our Company also provides scalable
charging infrastructure solutions,
enabling 0-80% charging in
approximately 60 to 90 minutes to
support continuous operations.

With this launch BEML further
strengthens its position as a leader
in Mining & Construction equipment,
while contributing to India’s vision of
sustainable industrial growth & self
reliance.

•    BEML Ltd, a leading Defence and
aerospace company, has launched
its indigenously designed and
manufactured High Mobility Vehicle
(HMV) 12x12 at its Palakkad
complex.

Developed for the Vehicles Research
and Development Establishment
(VRDE), DRDO, this state-of-the-art
vehicle enhances operational mobility for
India’s Defence forces while advancing
the nation’s vision of AatmaNirbhar
Bharat in strategic military assets. The
HMV 12x12 is engineered for extreme
terrains and challenging climatic
conditions, making it a vital asset for
Defence operations.

It is powered by a BSIII compliant
engine and features a 7-speed Allison
Automatic Transmission, supporting a
Gross Vehicle Weight (GVW) of 65 tons.
The vehicle has been developed through
BEML’s Futuristic Product Innovation
and Incubation Centre (FPIIC), further
reinforcing India’s Defence self reliance.

With the unveiling of the HMV 12X12,
BEML continues to play a pivotal role
in advancing India’s Defence mobility
solutions, leveraging its in house
expertise and world class manufacturing
capabilities to fortify national security &
readiness.

•    BEML Ltd launches Indigenously
Designed Motor Grader BG1205 to
strengthen India’s Mining Sector

BEML one of India’s leading mining and
construction equipment manufacturers,
proudly announced the launch of its
indigenously designed and developed
Motor Grader BG 1205 at its Mysuru
complex. Equipped with an impressive
24-foot blade, the BG 1205 has been
meticulously crafted to meet the evolving
demands of the mining sector.

Designed especially for high-intensity
operations in regions such as SECL
Bilaspur and Northern Coalfields Limited
(NCL) in Singrauli, this state-of the-
art equipment is tailored to support
the increasing need for efficient road¬
laying machinery capable of handling
high-capacity dumpers. With a focus
on superior performance, the BG 1205
is set to enhance productivity, ensure
operational efficiency, and contribute
significantly to the sustainability of
mining operations.

BG 1205 will play a pivotal role in
driving sectoral growth and supporting
Coal India Limited’s vision of reducing
dependency on imported mining
equipment. With this launch BEML Ltd
continues to demonstrate its leadership
in indigenous manufacturing and its
commitment to building a self reliant
India.

BEML Honoured with Double Gold for
Vande Bharat Sleeper & Electric Rope
Shovel at ET PSU Awards 2025

The Gold Award for future ready
infrastructure was conferred upon
BEML for its pathbreaking work on
the Vande Bharat Sleeper Trainset -
India’s first indigenously developed
semi high speed sleeper train capable
of reaching speeds up to 180 Kmph,
this next generation trainset represents
a monumental leap in India’s rail
infrastructure and a major milestone in
the journey towards Atmanirbhar Bharat.
Designed & manufactured by BEML,
the trainset combines cutting edge
technology with passenger comfort,
enabling operations at speeds of up to
180 Kmph. Built to global standards with
crashworthy design, superior ride quality
and advanced safety features, it marks a
transformative leap in overnight travel for
long distance routes.

The Company also received the Gold
Award for Operational Excellence for the
successful development of the BRS21
Electric Rope Shovel, India’s first fully
indigenised all electric rope shovel. This
achievement sets new benchmarks
in sustainable and energy efficient
mining equipment, reinforcing BEML’s
leadership in advanced Make in India
solutions for the core sector. Designed
for high performance excavation in
large scale mining operations, it offers
enhanced energy efficiency, reduced
carbon footprint and lower operating
costs.

BRS21 is equipped with advanced
features such as real time diagnostics,
predicative maintenance systems and
an ergonomic 360 deg operator cabin
for enhanced safety & efficiency. With
operating weight of 720 tonnes and a
21-cubic metre bucket, the BRS21 is
purpose built for massive overburden
removal in Large scale open cast mines
like Nigahi.

• BEML Ltd achieved a significant
milestone with the induction of
its indigenously manufactured
Mechanical Minefield Marking
Equipment Mark-II (MMME MK-II) into
the Indian army.

The accomplishment underscores
the successful collaboration between
the armed forces, DRDO and BEML,
furthering the Aatmanirbhar Bharat
vision by strengthening India’s self-reliant
defence manufacturing ecosystem.

Further during the year 2025 - 26, Our
Company has indigenized 133 items
covering all business verticals viz.,
Defence, Metro & Mining & Construction
items. Some of the major items
indigenized are 4 door cabin, brake sub
assembly, floor boards, ceiling panel,

saloon door system, propellor shaft,
NBC filtration system & Pneumatic
system etc.,

Continuous efforts are on to reduce
the import content further and increase
Make in India content.

Integrity pact

Pursuant to the directives from Central
Vigilance Commission and Ministry of
Defence, Integrity pact is being adopted with
all Vendors / Suppliers / Contractors / service
providers for all orders / contracts of value <
1 crore and above.

The pact essentially envisages an agreement
between the prospective vendors / bidders
and the Company, committing the persons
/ officials of both sides, not to resort to any
corrupt practices in any aspect / stage of the
contract.

Only those vendors / bidders, who commit
themselves to such a pact with the principal,
would be considered competent to
participate in the bidding process.

Integrity pact, in respect of a particular
contract, would be operative from the
stage of invitation of bids till the completion
of contracts. Any violation of the same
would entail disqualification of bidders and
exclusion of for future business dealings.

Two Independent External Monitors (lEMs)
have been appointed to review the cases on
bi-monthly or quarterly basis.

During 2025-26, f 5,140.95 crores of
purchase orders were released with Integrity
pact out of total purchase orders value of
f 6,100.62 crores.

e-Procurements

BEML Supplier Relationship Management
(SRM) is aiming to establish web based
seamless relationship and collaboration
of procurement process with its Global
business partners.

BEML endeavors to procure materials and
services through e-procurement platform on
SRM system.

Online Vendor payment tracking option to
check status of payments against supplier /
services / payment orders.

Tender status updates are provided through
automatic emails to bidders with reasons for
rejections.

After opening of the price bids, all technically
qualified / pre-qualified bidders will be able to
see the price details of other bids submitted
against the tender.

During the year about 93.5% of the
total requirement was sourced through
e-procurement.

Procurement through GeM:

Government e-Marketplace (GeM) is
implemented by the Government with
the aim to transform the way in which
procurement of goods and services is done
by Government Ministries & departments,
Public sector undertakings and other
apex autonomous bodies of the Central
Government. Procurement through GeM
has been authorized by General Financial
Rules by making necessary changes in
government rules. GeM is a completely
paperless, cashless and system driven
e-market place that enables procurement
of common use goods and services with
minimal human interface.

During the year 2025-26, materials worth
f 2,820.37 crores have been procured
through GeM out of the target value of
f 1,900.00 crores.

The same is being reviewed by the Audit
Committee & the Board regularly.

Micro and Small Enterprises

Company is procuring materials required
for production & for others through Micro &

Small Enterprises (MSEs). 358 items which
are reserved are being procured exclusively
from MSEs.

Appropriate weightage has been given for
MSEs in the MoU from 2015-16 onwards.
As per the directive of Government,
minimum 25% (Notified from 9^th Nov’18)
of procurements have to be procured from
MSEs amended from 20% earlier. Provided a
minimum 3% reservation for women owned
MSEs and 4% for SC/ST Enterprises.

Further MSE procurement data is uploaded
on “MSME SAMBANDH” portal on monthly
basis.

During 2025-26, Company has procured
f 1,391.89 crores from MSEs out of
f 4,489.33 crores local procurement which
constitutes 31% from MSEs.

Vendor Development

Vendor development is a continuous
process to identify and develop new vendors
to bring in competition among the vendors
and to reduce costs. Following methods are
generally followed to identify potential new
vendors:

•    Publication of Expression of Interest
(EoI) in BEML Website.

•    Listing of imported items in SRIJAN
PORTAL for Indigenization.

•    Participation in exhibitions and
seminars (Including Virtual).

•    Organize Vendor meets (Including
Virtual).

The procurements from Single source
are being reviewed Quarterly by Audit
Committee & Board.

The objective of Outsourcing & Vendor
Development policy is to achieve cost
effectiveness & improve competitiveness of
Company in global market.

BEML recognizes outsourcing as one of
the strategic tools to achieve cost benefits
and also complement the strengths of
private sector to build a strong industrial
base. BEML is well on its journey to
become a system integrator by outsourcing
a substantial part of manufacturing
activities from Indian vendors, enabling
BEML to enhance the capacity, attain cost
effectiveness and improve competitiveness
in the global market.

To facilitate outsourcing, the company has
well established policies, procedures and
guidelines.

•    New vendors are supported by
way of imparting knowledge
on manufacturing processes,
specifications, quality plans, etc.

•    BEML also extends its testing
facilities to its vendors wherever
required.

•    To enhance transparency in all its
procurement processes, BEML has
well established e-Procurement
Portal.

Further, as per the directives of Ministry
of Defence, BEML has framed an
“Outsourcing and Vendor Development
Policy” duly approved by the Board. The
objective of the policy is to enhance cost
effectiveness and improve competitiveness
of the Company in Global market. The other
significant objective of this Outsourcing
and Vendor Development Policy is to build
a manufacturing eco system in the Country
to attain self-reliance. On the other hand,
participation of Indian private industry will
be an enabler in building technological and
manufacturing capability inside the country.
Based on the policy so framed, a Road Map
for Vendor Development has been prepared
with yearly targets and monitored at the
Board level periodically.

The Hindi cell is functioning in the Corporate
office of the Company and also in all
Complexes & Divisions. It is responsible
for ensuring the compliance of the Official
Languages Act, the Rules made there
under and the administrative instructions
regarding use of Hindi received from the
Ministry of Defence and the Department of
Official Language from time to time, under
its manufacturing complexes and Regional/
District Offices.

Compliance of Section 3(3) of Official
Languages (OL) Act, 1963

Section 3(3) of Official Languages Act, 1963
has been complied with fully during the
period under review and all the documents
covered under this section have been issued
bilingually. The position of the same is being
monitored through the quarterly meetings
of the Official Language Implementation
Committee.

Hindi Training :-

Training in Hindi Prabodh, Praveen and
Pragya courses were conducted at Corporate
office and all complex offices, ROs and DOs
for January-May, 2025 and July-November,
2025 and a total of 148 Executives and Non¬
Executives (Prabodh:49; Praveen: 40 and
Pragya: 59) have been trained in these two
sessions.

Incentive scheme for original work in Hindi: -

Cash incentive scheme for original work in
Hindi has been implemented in the Company.

Hindi Online Workshop: -

In continuation of the practice of conducting
all india level Hindi workshop through Online
by BEML, the Corporate office and other
offices on turn basis have conducted a total
of 16 Hindi workshops and a total of 621
Executives / Non-Executives across BEML
were trained.

Hindi company inhouse magazine: -

The latest issue of In house Hindi magazine
“Kshitij-2025” released on the occasion of
Dt. 11.04.2025 at Parliamentary Committee
on Official Language inspection, Guwahati.

TOLIC Activities: -

In connection with the Rajabhasha
Souhardh Utsav -2025 proposed by the
Town Official Language Implementation
Committee, Bengaluru, ‘Hindi Antakshari’
was conducted on 11.08.2025 at the BEML
Corporate Office was organized and a total
of 69 participants from various ventures
participated in it.

Hindi Fortnight Celebrations:-

Hindi Fortnight was observed in the
Corporate Office, all Complexes and
ROs/DOs from September 14, 2025 to
September 28, 2025. During this period,
Executives and Non-Executives were
motivated to do their maximum work in Hindi
and competitions such as Hindi Crossword,
Hindi Administrative Terminology, Hindi
Quiz, Hindi Antakshari and Hindi Essay
Competitions were organised. Instructions
were issued to all offices to take the pledge
on Hindi Day i.e. on September 14, 2025 in
accordance with the guidelines issued by
the Ministry of Defence and Department of
Official Language, Ministry of Home Affairs.

Official Language Conferences: -

>    Two executives have attended for
one-day Regional Official Language
Conference and Award Distribution
Ceremony of South-West Region
at Mysore on 04.01.2025 by the
Department of Official Language,
Ministry of Home Affairs, Government
of India.

>    Six executives have attended
“Golden Jubilee Celebration” and All

India Official Language Conference
at Bharat Mandapam, New Delhi and
Hyderabad held on 26^th June and
10^th July, 2025 on completion 50
years of the Department of Official
language, Ministry of Home affairs,
Govt of India.

> Four executives have attended
for Hindi day and Fourth All India
Official Language Conference at
Gandhinagar, Gujarat held on 14
and 15 September, 2025 conducted
by Department of Official language,
Ministry of Home affairs, Govt of
India.

Parliamentary Committee on
Official Language Inspection:-

The first sub-committee of the Parliamentary
Committee on Official Language has
inspected the following offices and expressed
their satisfaction over the progress achieved
in Hindi across BEML.

MOD inspection on Official language
inspection: -

Asst. Director (OL), MoD, New Delhi has
inspected our BEML Limited, District office,
Vishakhapatnam on official language
aspects on 06.03.2026

RIO inspection on Official language
inspection: -

Dy. Director (OL), Regional Implementation
Office, Bangalore has inspected our BEML
Limited, Corporate office, Bangalore on
official language aspects on 06.05.2025

A total of 02 internal Official Language
Inspections have been done by Sr.
Executives of Corporate office at various
offices of BEML during the year 2025-26

Bilingual Equipment Manuals:¬
> The manuals of User Hand Book
(English) for BEML High Mobility
Vehicle 6x6 BEML T815-28RR36
22 270 6x6 Received From KGF
Complex has been completed and
submitted on time.

>    Company’s BD 125 Series Engine
manual translation work completed
and submitted on time.

Other achievements:

>    Hindi version of the Questionnaire
has been prepared for submission

to the Horizontal Examination of the
Subject “Land Holding Optimization
in select CPSUs”

> All translation work and Hindi typing
work relating to Annual Reports,
Comptroller and Auditor General
Audit Paras, Technical Reports,
Memorandum of Understanding,
Reports on SC/ST, RTI, Reservation
policy, Standing orders, Product
Profiles, Advertisement Materials
and important standard forms was
printed and published bilingually.

Manpower:

The number of employees of the Company
as on 31.03.2026 stood at 4923 as against
4755 for the previous year, reflecting an
increase of 3.53%.

The category-wise number of SC/ ST
and Ex-Servicemen employees as on
31.03.2026 and representation of SC/ ST
and Ex-servicemen as of the same date as
compared to total strength is as under:

* excluding Board level Executives & CVO on deputation

* excluding Board level Executives & CVO on deputation
b) Executives and Non-Executives Turnover Rate :

c) Recruitment of SC/ ST/ OBC/ Economically Weaker Section (EWS)

Training and Certification conducted
in collaboration with the Welding
Training & Certification Services
(WTCS), Bangalore, and the Centre
of Excellence (CoE) Welding
School. Specialised programmes
such as Laser Welding Operator
Training at ICF (Chennai) and
Deputy Welding Co-ordinator
Training as per ISO 14731/EN15085/
ISO 3834 standards were also
organized. Cutting-edge technology
programmes included a three-day
workshop on Industry 4.0 & Smart
Manufacturing Systems at CMTI
Bangalore, Engineering Simulation
using SolidWorks, Design of UAVs
and Counter-Drone Strategies,
and a public seminar on KISSsoft
System Module — all conducted
through the Engineering Staff
College of India (ESCI), Hyderabad.
Employees also participated in
RAMS for Railway Systems at IIT
Kharagpur and an online programme
on Design & Manufacture of Large
Caliber Weapons, reflecting the
organization’s commitment to staying
abreast of advanced engineering and
defence technologies.

2. In the area of safety and health,

a robust training schedule was
carried out throughout the year.
Safe Material Handling Practices
were conducted in multiple
batches across the organization,
complemented by Awareness
Programs on Fire Fighting, Electrical
Safety Regulations & Best Practices,
and Safety Auditor Training as per IS
14489:2018. First Aid & Basic Life
Support Training was conducted
at both Bangalore Complex and
KGF, while Basic and Advanced
Cardiac Life Support (ACLS)
Provider Courses were held in
multiple batches in association with

Manipal Hospital. Health awareness
sessions covered critical topics such
as cancer prevention, diabetes,
ophthalmology,    occupational

health, and communicable diseases
including Malaria, COVID-19, and
Dengue. An Awareness Program on
EN-15085-2 welding standards was
also held for shop floor personnel.

3.    The behavioural and leadership
development initiatives were
equally diverse. Regular in-house
programmes conducted by the
Training Department addressed
themes such as Work-Life Balance
& Stress Management, Strategic
Thinking & Leadership, Decision
Making & Problem Solving,
Business Negotiation Skills,
Attitude & Mindset for Improving
Work Culture, Team Building &
Teamwork, Emotional Intelligence,
Discipline & Productivity, Ownership
Accountability & Responsibility
(OAR), POSH (Prevention of
Sexual Harassment), and Ethics &
Governance. A Learning Workshop
for Enquiry Officers/Presenting
Officers and sessions on Framing of
Charges and Grievance Redressal
strengthened the organization’s
internal discipline mechanism. A
modular training programme on
Personality Development, Journey
Towards Excellence, and High
Performing Work Culture & Ethics
was implemented for non-executives
at KGF, covering large groups across
multiple batches.

4.    Under functional and regulatory
training, employees participated in
programmes on SAP QM Module,
SAP Refresher Courses, Introduction
to SAP & ERP, Managing Risk in
Primavera, Public Procurement,
Labour Laws & Modern IR Trends,
Annual Property Returns and

Preventive Vigilance, Income
Tax Outreach, NPS Awareness,
and ESG (Environmental,
Social & Governance) training
through RLI Chennai. The Vendor
Assessment & Evaluation Training
Programme, QCI-CCQC 2025
Quality Circle Convention at Noida,
and participation in the SHRM
Conference and CHRO Confex
further enriched the professional
development of HR and functional
executives.

5. In the area of environmental
and sustainability awareness,

programmes were conducted
on World Environment Day in
association with KSPCB and a
session on Ending Plastic Pollution
by Eliminating Single-Use Plastics
was organised on World Environment
Day. Yoga Awareness, Ayush
Awareness, and Personal Well¬
Being sessions were also held as
part of employee wellness initiatives.
Induction and Familiarization
programmes were systematically
conducted for new recruits at both
Bangalore Complex and KGF. The
overall training calendar for 2025¬
26 demonstrates a well-rounded
investment in human capital
development, with participation
cutting across senior, middle, and
junior management levels as well
as the non-executives’ cadre,
underscoring the organisation's
commitment to a culture of
continuous learning.

Award received by the Company
with related to Skill Development
Initiative:

National HR Excellence Awards 2025 -
Winner of silver Award for commendable
“Innovative HR Practices” on HR
Transformation Initiatives under Category B.

Compliance under Persons with
Disabilities Act, 1995:

In terms of various provisions under
The Persons with Disabilities (Equal
Opportunities, Protection of Rights and
Full Participation) Act, 1995 (PWD Act),
your Company has ensured reservation of
vacancies for the posts identified for each
disability and carry forward of vacancies
which could not be filled up due to non¬
availability of suitable persons with disability
during the year.

Grievance Redressal System for
SCs/STs:

The Company has constituted SC/ST
Cell at all Manufacturing Complexes and
Offices in terms of Department of Personnel
& Training (DOPT) guidelines and Cell
Officers are nominated at each Complexes.
The HR heads, being Liaison Officers of
the respective locations have conducted
periodical meetings with representatives of
SC/ ST Employees Welfare Associations to
redress the grievances/ issues appropriately.
Further, the Chief Liaison Officer who is in
the rank of Executive Director/ Chief General
Manager/ General Manager have met all
the Cell Officers, Liaison Officers and Office
Bearers of SC/ST Welfare Associations
periodically and monitor the status on
redressal of grievances.

Public Grievance Redressal
through CPGRAMS:

The Department of Administrative Reforms
and Public Grievances under the Ministry
of Personnel, Public Grievances and
Pensions has initiated Centralized Public
Grievance Redress and Monitoring System
(CPGRAMS), which is the platform based
on web technology primarily aims to enable
submission of grievances by the aggrieved
citizens for scrutinizing and acting for speedy
redressal of these grievances.

For this purpose, Company has nominated
Chief General Manager (HR) as the Nodal
Officer to deal with various public grievances
raised through CPGRAMS platform and to
ensure prompt and proper feedback to the
concerned persons.

Prohibition of Sexual Harassment
of Women at Workplace:

Internal Complaints Committee (ICC) has
been constituted as per Sec 4(1) of the
Sexual Harassment of Women at Work
Place (Prevention, Prohibition & Redressal)
Act, 2013. The ICC constitution has been
displayed in all the prominent locations
across the Complex/Offices for the
information of all the Women employees.

Two Complaints were received and the same
were investigated in terms of provision of The
sexual Harassment of women at Workplace
(Prevention, Prohibition and Redressal) Act
2013. Necessary action has been taken in
line with the ICC’s recommendation.

The Inquires against the above two
references have been completed by the
Internal Complaint Committee (under
POSH) within prescribed 90 days.

Maternity Benefits Act, 1961

All the provisions have been complied in toto
with respect to Maternity benefits Act, 1961,
covered under the Code on Social Security
- 2020.

Labour Welfare Activities:

The Company has extended all help and
support to the Labour Welfare Fund (LWF)
functioning in the production units for the
benefits of Employees, their dependents
and local population. The LWF conducted
various programmes for the benefit of its
Employees.

Welfare Activities:

Welfare facilities like Medical, Housing / HRA,
Canteen, Transportation are provided to all

the Employees. Educational facilities (BEML
Schools) are also provided for employees’
children at KGF and Bangalore. Sports
and Cultural events / activities are being
organised. Apart from the above facilities,
various schemes viz, BEML Executive
Superannuation (Pension) Scheme, BEML
Post Superannuation Medical Benefits
Scheme, Group Insurance Scheme, BEML
Life Risk Coverage Insurance Scheme,
BEML Death Relief Fund (DRF) are in
operation for the benefit of Executives &
Non-Executives.

Safety Measures in BEML:

Following Safety measures have been
adopted in the Company to ensure safe
workplace and avoid accidents:

•    Safety related issues / concerns are
discussed at SHE (Safety, Health and
Environment) Committee Meeting to
ensure consultation and participation of
workers in issues related to Safety.

•    Hazard Identification and Risk
assessment (HIRA) is carried out to
proactively identify Hazards and take
corrective actions.

•    Operation Control Procedures are in
place to ensure controls are established
for all the critical manufacturing process.

•    The Complexes have a full-fledged Fire
and Emergency department, Safety
Department and an Occupational Health
Centre to ensure effective response to
emergencies.

•    Regular Mock Drills are conducted
to ensure swift response to potential
emergency situations.

•    Regular Safety, Health and
Environmental awareness training are
given to workmen through Internal /
External Faculty for creating safety
awareness amongst workers;

•    Safety promotional activities like
celebration of National Safety Day to
inculcate the spirit of Safe Workplace.

•    Regular Safety Inspections, audits and
surveys are conducted to identify Unsafe
acts and conditions and take necessary
corrective actions.

•    Reporting and investigation of “Near
Miss” incidents and taking effective
corrective actions.

•    Work-permit system is followed for high-
risk activities.

•    Even though all efforts are made to
eliminate hazards, Personal Protective
Equipment (PPE) as a last step in
hierarchy of controls are provided to
workmen.

•    Regular testing and    certification of

statutory appliances like Cranes, Lifting
tackles and pressure vessels through
Third party Competent person.

•    Bangalore, KGF,    Mysore and

Palakkad Complexes    have certified

for Occupational Health and Safety
Management System    (OHSMS) ISO

45001:2018.

CSR ACTIVITY REPORT:

The Company in continuing with its
endeavor towards being a Responsible
Corporate Citizen with full commitment to
the principles of initiatives achieving the
holistic development in its areas of operation
and the society as a whole. In alignment with
the provisions of the Companies Act,2013
and CSR Rules framed there under, the
company has adopted CSR Policy with
focus on initiatives that create lasting social
impact.

During the reporting period, viz 2025-26, the
company has undertaken various initiatives/
projects aligned with statutory requirements
under CSR. The activities are broadly
categorized into the following Six areas:

i.    Imparting Education:

BEML runs one Junior College and two
Primary & Nursery Schools at KGF besides
providing facility to run one institution at
Bangalore. These Institutions, although
meant primarily for the children of the
employees but also caters to a large extent
to the Local population. BEML also runs a
Kendriya Vidyalaya at KGF, for the benefit of
the employees’ children and also for the local
population. The Company also provides
School building, Furniture, Attender for Mid¬
day Programme and Security Personnel
for the Government English Model Higher
Primary School. For the Academic Year
2025-26, the Company has provided
education to 2989 students, out of which
2024 non-BEML Students have enrolled at
BEML Schools for their education during
the current academic year and have availed
online education.

ii.    Development of Classroom
Infrastructure

As a part of strengthening facilities by
enhancing the quality of educational
spaces by improving classrooms for
teaching and learning, BEML has extended
support to the tune of f 10 Lakhs to Sri
Saraswathi Sisumandir High School
at Sattenapalli, Palnadu Dist., Andhra
Pradesh in constructing classrooms with
over 215 beneficiaries. The project aimed
at better student engagement, improved
academic outcomes and overall institutional
development.

iii.    Construction of 1^st Floor at Swamy
Dayananda Gurukulam

BEML Limited has extended support to
Pullalarevu Audinarayana Reddy Memorial
Trust, Ananthapur, Andhra Pradesh in
construction of 1^st floor at Swamy Dayananda
Gurukulam. The project aims to enhance
the institutions infrastructure by creating
additional space to accommodate academic

and residentials needs at the Gurukulam
with a budget of f 30 Lakhs.

iv.    Government Blind School
-Infrastructure Development

BEML Ltd, as part of its CSR commitment,
provided funds for upgrading the learning
infrastructure at Govt Blind School Mysore
through Equibeing Foundation. The project
included upgradation of the classroom,
creating digital reading room, installation of
smart classrooms and setting up a cricket
pitch for the blind This support enabled
holistic development for visually impaired
students. This milestone reflects BEML’s
dedication and reinforcing its role in driving
social impact through meaningful community
partnerships. Total number, of beneficiaries
of this project would be 326 students and
Rs.15 Lakh being the cost of the project.

v.    Development of infrastructure in Govt
Schools at Vijaypura District

Towards Company CSR initiatives, the play
equipment was donated to Govt Lower
primary schools at Ranappagola Vijayapura
and Govt Lower primary school at Bijapur
district with the cost of f 10 Lakhs under
CSR budget.

vi.    Construction of one block of 24
dormitory halls and 24 toilets unit's rooms
for Girls Students Residential Hostel

A significant CSR initiative aimed at
empowering young women by improving
residential infrastructure for students,
particularly by providing safe, hygienic and
well-equipped living spaces for girls at the
Pransla camps in association with Vedic
Mission Trust at Rajkot District, Gujarat
with over 3000 girl students as beneficiaries
and expenditure of f 20 Lakhs.

II. HEALTHCARE

BEML Limited has undertaken the following
Healthcare measures under CSR for the
year 2025-26:

i.    The Medical facilities to Ex-BGML
Employees and their Dependents

The Company has been extending free
medical facilities by conducting free Mobile
Medical camps to the Ex-BGML Employees
and their families after the closure of BGML
(Bharat Gold Mines Limited) Hospital. The
Company is also extending Out-patient
medical facilities by deputing Doctor and
Para-medical staff to BGML areas such as
Marikuppam, Champion Reef and Oorgaum.
Medicines prescribed by the Doctors are
being dispensed free of cost for general
illness. During FY 2025-2026, 26 camps
were organized benefiting 1965 people.

ii.    Eradication of TB

As a part of Pradhan Mantri TB Mukt
Bharath Abhiyan, a Government initiative
to achieve the goal of TB elimination, a
health camp and TB screening camp was
organized.

The camp was conducted in coordination
with District Health Authorities-- DHO and
team, NCD team, NTEP team, Doctors
from Mysore medical college, JSS medical
college and government hospital [PHC and
taluk hospital] had participated in the camp.

“Nutrition kits” were distributed to 190 TB
patients (KGF-96 & Bangarpet-94) for faster
recovery from TB for 03 months. So far
Rs.1.82 lakh has been spent on this project.
The kits provide additional health support to
TB patients to enable them to recover faster.

iii.    Distribution of Aids & Appliances to
Divvangjans (Persons with Disabilities) :-

As a part of its CSR initiatives, BEML
undertook project for the free distribution of
aids and assistive appliances to Divyangjans
in Bangalore. The project was implemented
by ALIMCO (Artificial Limbs Manufacturing
Corporation of India), a Government of
India enterprise specializing in assistive and
rehabilitation solutions, with the cost of the
project of f 20 Lakhs and 29 beneficiaries.

This initiative was aimed at enhancing
mobility, independence, dignity and Social
economic participation of Persons with
Disabilities.

iv.    Procurement of a Peadiatric Upper GI
Endoscope

Our Company had donated f 14 lakh
to Victoria and BMCRI (Bangalore
Medical College & Research Institute)
Super Specialist Hospitals, Bangalore
for procurement of a Peadiatric Upper GI
Endoscope to the Department of Surgical
Gastroenterology. This initiative significantly
enhances early diagnosis and quality of care
for persons with paediatric gastrointestinal
conditions in their tertiary care government
hospital particularly those from economically
weaker sections and 700 beneficiaries.

v. Procurement of Medical Equipment’s
for ECHS Polyclinics

Our Company had donated f 12 lakh to Ex¬
Servicemen Contributory Health Scheme
(ECHS), HQ, Telengana & Andhra Pradesh
for Procurement of Medical Equipment’s for
ECHS Polyclinics, as a support for providing
cash less & capless quality medical care
to all Retired Military Personnel & their
dependents and 12000 beneficiaries.

vi.    Upgrading Blood Centre Services

A sum of f 7.5 lakh was donated to General
Hospital, KGF for upgrading “Blood Centre
Services” providing several peripheral
government facilities, blood storage centers
and many private hospitals depending
on General Hospital KGF, for blood and
emergency transfusion support and 10500
beneficiaries

vii.    Jan Arogya Raksha

A collaborative health intervention between
“My Home India” and “BEML Limited”, was
successfully executed to address the acute
healthcaregapintheChandivalislumregionof
Mumbai. Moving beyond basic primary care,
the mission provided a "360-degree" health

shield by integrating General Medicine Unit
for 600 adults in Geriatric screenings and
chronic disease management, Paediatrics
Medical Camp with focus on Malnutrition
assessment, deworming and respiratory
health for children (0-14 years) by providing
respiratory syrups to 425 children, ENT
diagnostics by using advanced otoscopes
to treat 350 beneficiaries and Menstrual
Hygiene Management by distributing of 550
high-quality Sanitary Pad kits. The overall
expenditure of the project is f 6 Lakhs with
overall 1925 beneficiaries.

viii.    Distribution of Wheelchairs and
development of public utilities

As a part of commitment to social inclusion
and community welfare, BEML Limited has
undertaken CSR initiative involving the
distribution of Wheelchairs to differently
abled children at Indian Institute of Cerebral
Palsy (IICP) , Kolkata which had improved
the mobility and accessibility to improve their
quality of life and foster a sense of dignity and
confidence of over 1018 beneficiaries with a
total expenditure of f 12 Lakhs.

ix.    Enabling Mobility of specially abled, by
providing 3 wheeler vehicles.

BEML has provided Three-wheeler vehicles
to specially abled persons to improve mobility
and independence in association with
Department of Factories, Boilers, Industrial
Safety & Health, Bangalore. This initiative
reflects BEML’s commitment to inclusive
social development and community welfare
also, reflecting a strong commitment towards
empowering specially abled people.

x.    Food Habit, Awareness & Distribution
of nutritious food packets

This project focuses on promoting healthy
food habits and distributing nutritious food
packets intended to address immediate
dietary needs and improve overall health and
well-being to the residents of Harekrushna
basti and Sitanatha Basti slums at
Bhubaneswar, Odisha in association with

Parichay Foundation especially to 50
underprivileged women from economically
weaker sections along with awareness
sessions on “Balanced Diet and Healthy
Food Practices”. The project has incurred an
expenditure of Rs. 3 Lakhs.

xi. Food Distribution to School Children
for eradicating hunger-Mid day Meal
Programme

The Company in association with the
Akshaya Patra Foundation had provided
support for the Mid-Day meals programme.
The program increases school enrolment &
attendance, addresses malnutrition and also
empowers women through employment.
The overall expenditure of the project is
f 10 Lakhs with overall 2629 beneficiaries.

III. ENVIRONMENTAL PROTECTION
AND AFFORE STATION
MEASURES

In recognizing of the growing environmental
challenges, BEML Limited affirms its
commitment to contribute towards the
same. The initiatives taken during 2025-26
are given below:

i.    Energy Use and Conservation
Measures

Clean & Green Energy: The Company’s
5MW Windmill at Gadag and 18 MW Windmill
at Bagalkot Districts in Karnataka have
contributed towards ensuring clean & green
energy by mitigating 20849 Tons (approx) of
Carbon up to March, 2026.

ii.    Establishing a Yatri Shed for Visitors

As a part of community development for
providing a safe and comfortable resting
space for rural travelers, visitors and tourists
especially for those travelling long distances,
BEML has facilitated in constructing a shed
at Kalyanpur Black Campus, Motihari, East
Chamaparan with over 500 beneficiaries
per day and f 10 Lakhs being the cost of
the project in association with Kaushalya
Foundation, Patna - Bihar

In recognition of the vital role that sports and
Physical activities play in fostering health,
discipline, teamwork and Social inclusions
BEML is committed to promoting sports as
its integral part of the CSR support provided
by the company as under:

i.    Upgradation of Sports Infrastructure
(Basketball & Volleyball Courts) at National
Institute of Technology Raipur

BEML has extended support of f 10 Lakhs
for the upgradation of sports infrastructure
at NIT Raipur campus. The initiative was
aimed to strengthen sports facilities and
promote students' physical well-being and
to encourage student participation in sports
activities. The approximate beneficiaries are
400.

ii.    Sansad Khel Spardha

BEML extended its support for
Sansad Khel Mahotsav 2025 event which
was conducted through the National
Youth Federation in Rajahmundry. The
initiative aimed to promote sports culture
and physical fitness while encouraging
community participation, leaving a lasting
impact on athletes and the region. The event
stands as a strong example of community-
driven sports development, aligning with the
national vision of encouraging fitness and
youth empowerment. Approximately 40,000
participants took part at the Mandal level,
reflecting strong grassroots engagement
and widespread public interest in sports
activities.

iii.    Purchase of 125KV Diesel Generator
and Green DG set with accessories:

BEML Ltd, as part of its CSR commitment,
provided funds to the tune of f 21 Lakhs
for procurement & Installation of Kirloskar
Green 125 KVA Diesel Generator at “Anju
Bobby Foundation, Kambipura, Bengaluru”.

This valuable support has significantly
strengthened their infrastructure and

enhanced the day-to-day functioning of
training facility, creating meaningful and
lasting value for athletes, trainees, and the
wider community. And also, very useful
for the lighting system also benefits 100+
neighborhood residents who regularly utilize
the premises for walking, jogging and fitness
activities, creating a positive social impact
beyond competitive sports. The generator
also powers the high-capacity irrigation
system used for maintaining the home
ground, helping preserve excellent field
conditions throughout changing weather
and climate conditions. By strengthening
the training ecosystem, this support helps
athletes prepare forNational and International
competitions, thereby contributing to India’s
long-term sporting success and medal
aspirations. The approximate beneficiaries
are 250.

iv. Sports Kit for 40 players & Escort
(Player, Escort, Ramp Operator & Officials)

As a part of BEML’s commitment towards
promoting inclusive sports and encouraging
athletes with disabilities to pursue excellence
in the field of sports. BEML provided sports
kits for 40 players along with support
extended to escorts, ramp operators and
officials for training and competition at
Boccia Sports Federation of India, New Delhi
with the cost of the project of f 10 Lakhs and
40 beneficiaries.

V.    CONTRIBUTION TO ARMED FORCES
FLAG DAY FUND

Keeping in view the sacrifice of the war heroes
of the country, the Company has contributed
towards the ‘Vocational Training Grant of
Widows’. The Company has expressed its
solidarity for the welfare of the family of the
War Heroes.

VI.    PROMOTING ARTS AND CULTURE:

BEML provided support for the 53rd Jai
Ho! Pandit Jasraj Pandit Motiram Pandit
Maniram, Music sangeet Samaroha, an
Indian classical music festival held in

Hyderabad .The event was organized by
the Pandit Jasraj Cultural Foundation on
“Sustainable Livelihoods Programmes”
which aims to preserve national heritage and
support emerging artists.

SWACHH BHARAT MISSION:

The Company, in continuing with its endeavor
towards being a Socially Responsible entity
had undertaken various initiatives under
Swachh Bharat Campaign & Swachh
Vidyalaya Abhiyaan during the year 2025¬
26. The Swachh Bharat Initiatives at BEML
Limited for 2025-26 are as under:

1. Celebration of Swachhata Hi
Seva Campaign 2025:

As part of the Swachhata Hi Seva Campaign
2025, a series of cleanliness drives,
awareness programs, and community
outreach activities were organized at BEML
and nearby areas from 17^th September
to 30^th September 2025. The objective
of these campaign was to promote
cleanliness, hygiene and sustainable waste
management, in alignment with the national
vision of Swachh Bharat.

Activities Conducted

a.    Marathons were organized to spread
awareness about the Swachh Bharat
Campaign and promote physical
fitness alongside cleanliness, with
active participation of Executives,
Non-Executives, FTEs, and Contract
Staffs, to spread awareness on
cleanliness and fitness to public.

b.    Awareness posters and banners
promoting the 'Clean India'
movement were displayed at
prominent locations to engage
residents. The general public
Banners were displayed across
strategic points in the Factory
premises as well as the reception
areas, Admin building, Canteen and
the OHC.

c.    Specific areas inside the company
premises were identified and
accumulated waste was collected
and disposed.

d.    An awareness session on personal
hygiene and health protection was
conducted for all employees of the
Complex.

e.    As part of vendor sensitization
activity at M/s Stahlkind in KIN FRA
Industrial Park.Palakad Executives,
Non-Executives from BEML and M/s
Stahlkind jointly participated in the
cleaning activities, which focused on
the removal of plastic, industrial and
organic waste.

f.    Ek Din, Ek Ghanta, Ek Saath”, a
cleanliness drive was conducted at
GTWLP School, Nadupathi Tribal
Colony. The school premises and
surroundings were cleaned and an
awareness session on cleanliness
was delivered to the students by
Clean Kerala Mission.

g.    The BEML Fine Arts Club, imparted
the concept of Swachhata Hi Seva
through its street play on 26.09.2025
in Kannada. The Street paly was
organized at the Workers canteen
inside the factory.The Play depicted
journey of the various ways for
creation of waste, the way people
discarded the waste in various
places, which caused unclean
environment, harms caused due to
non-segregation. The play gradually
took the audience through the
process of segregation of waste and
proper disposal of waste. The play
also imparted the health aspects in
having clean environment especially
to the Safai Mitras dealing with
various kinds of waste on day-to¬
day basis. The Street play focused

on the importance of cleanliness,
segregation of waste and the
responsibility of each and every
individual towards keeping their
environment clean

h.    A series of awareness programs
were conducted on the significance
of food conservation and the need for
effective food waste management.
As part of Swachhata Hi Seva
Campaign 2025, Medical camp was
organized on 27^th September 2025 at
the First Aid center, BEML Palakkad
Complex and preventive Health
Camp and Awareness on health &
hygiene was specifically organized
for the Safai Mitra’s of the BEML

i.    On 2^nd Oct, as part of Gandhi Jayanthi
celebrations, a tribute ceremony
was observed. This was followed by
the felicitation of Safai Mitras, a tree
plantation drive and an Oath taking
ceremony. The Swachh Bharat
pledge was administered in trilingual
to the gathering. Then a March Past
was held by the gathering depicting
the importance of the Swachh Bharat
Abhiyaan and also the Swachhta
Hi Seva for fulfilling the dream of
Mahatma Gandhiji for a Clean and
Green India.

The campaign witnessed active involvement
from Executives, Non-Executives, personnel
engaged on contract and community
members, reflecting the strong commitment
of BEML towards Swachhata, environmental
sustainability and social responsibility.

2. Special Campaign between
02.10.2025 to 31.10.2025

a) The Special Campaign 5.0 officially
commenced on September 15, 2025
with preparatory and implementation
phase that sought to achieve the

cleanliness targets across the
country.

b)    The month-long campaign held
from October 02 to 31 2025 was
undertaken in alignment with the
Government of India initiative to
promote cleanliness, efficiency
and good governance across all
Complexes / Offices. The focus
on special campaign 5.0 was an
overall cleanliness (Swachhata) of
workplace, space Management,
promoting sustainable practices
and optimum disposal of pending
matters.

c)    Through the above campaign the
company had got the following
benefits.:

•    Record Management: Over 11703
physical files were reviewed and
weeded out.

•    Space Optimization: Reported
Space Optimization is approximately
736285 lakh sq.ft. contributing to
efficient space management.

•    Revenue Generation: Revenue
generated of approximately is f 2.93
crore from all complexes.

3. Swachhta Pakhwada :

In line with the directives of Ministry,
“Swachhta Pakhwada” was organised across
all the Complexes / Offices of the Company
from 1^st December to 15^th December, 2025
by displaying Posters/Banners and also
organizing various Programmes on creating
awareness on Cleanliness.

A brief report of the same is furnished below.

•    Oath taking ceremony and March
Past.

•    Display of Posters and Banners,

•    Disposing of scrap material in the
factory premises and storage in
organized manner, Cleanliness Drive
in the public places,

•    Organising Plogging like activities
and collection of plastic waste,

•    Weeding out of old files and offices
equipment, Cleaning of Furniture
and almirah of offices,

•    Tree plantation in township area,
residential complexes and Factory
premises etc.,

•    Organizing seminars on cleanliness
& “Plastic Free India”, Display
of Banners/Posters to create
awareness among the people.

•    Painting /Essay competitions on
importance of cleanliness for the
children of the employees,

•    Fumigation of insecticides in
the township for prevention of
mosquitoes and other insects,

•    Making of plastic free zone in Factory
premises and residential complexes,

•    Disposal of e-wastes in administrative
offices,

•    Cleanliness drive in drainage
systems in Factory premises and
residential complexes,

•    Branding and Publicity of Pakhwada
activities in electronic and print media
platforms at both field and central
level, make use of social media such
as MyGov, Twitter and Facebook
extensively for the purpose.

Compliance under the Right to
Information Act, 2005

The information required to be provided to
citizens under Section 4(1)(b) of RTI Act, 2005
on ourcompany website, i.e., www.bemlindia.
in”. It contains general information of the

Company, functions and duties, powers
and duties of Executives / Non-Executives,
decision making process, relevant rules,
regulations, manuals & records held by
BEML, directory of the Company’s officers,
pay scales of Executives / Non-Executives
etc., and procedure for seeking information
and inspection of Records. The Company
has nominated a Central Public Information
Officer, Appellate Authority, Transparency
Officer and Six Central Assistant Public
Information Officers representing for
Complex / Divisions to attend to the
Applications & Appeals. Further, during the
year 2025-26 the Company has received
253 RTI Applications seeking information
pertaining to human resources, personnel,
recruitment, contracts, tenders, business
related matters etc., and the same are being
disposed.

Digital Transformation Initiatives:

Digital Transformation is focused to
streamline all business process to drive
better Accountability, Transparency
& Traceability, enhancing the overall
Operational efficiency including the
compliance.

Following are the initiatives implemented
during 2025-26

•    Cyber security compliance : DMZ
network segmentation between
Intranet & Internet.

•    Revamp of Business Network with
cyber compliance Switches

•    Inventory Dashboard reports of all
SBU’s for Optimization & Inventory
control analysis

•    Digital Design Drawing & Process
sheet Integration with SAP Bill of
Material along with Time Stamp

•    Digital signature of Commercial
Invoices & Vouchers

•    Tableau Dashboard for Data
Analytics

•    Digitization of HR Policy documents

DT Road map plan includes S/4 HANA
implementation, AI based projects in
Operations, Augmented Reality digital
solution, Industry 4.0 & QA 4.0, Human
Resource Management System (HRMS)
with integration to SAP

Report on the performance and
financial position of subsidiaries
and Joint Venture CompanySubsidiary Companies:

• M/s Vignyan Industries Limited (VIL):

MoD vide letter dated 10.09.2021 informed
that the Union Cabinet has accorded approval
for closure of VIL. Accordingly, Members of
the Company at its Extraordinary General
Meeting held on 11.10.2021 accorded
approval for Voluntary Liquidation and
appointed Shri Venkataraman Jayagopal as
official liquidator (OL).

On the Official liquidator (OL)
recommendation, an E-auction was
conducted through MSTC, successfully
selling for all 3 (three) available land parcels
to the highest (H1) bidder. The total Sale
proceed, including a late penalty fee of
f 51.57 Crs have been secured and the sale
registration w.r.t H1 bidder was completed
on 27^th June 25. Further, Official Liquidator
recommended the entire outstanding loan
amount of f 15.4 Crs due up to June 2025
has been fully repaid to BEML. The
associated capital gains tax liability of
f 6.04 Crs arising from the land sale has also
been completely discharged.

M/s MAMC Industries Limited (MIL):

The Company has entered into a Consortium
Agreement (MAMC Consortium) with M/s.
Coal India Limited (CIL) and M/s. Damodar
Valley Corporation (DVC) on 08.06.2010 for

acquiring specified assets (the assets) of M/s.
Mining and Allied Machinery Corporation
Limited (under liquidation - MAMC Ltd). The
Consortium members agreed upon a holding
pattern of 48:26:26 for BEML,CIL and DVC
respectively.

The Consortium paid the bid amount of
f 10,000 Lakhs as per the Order of the
Honourable Kolkata High Court for the
assets including f 4800 Lakhs contributed
by BEML. The assets are in possession
of the Consortium. As per the directive of
the Honourable Kolkata High Court, dated

05.03.2025, the sale certificates in respect
of the assets of MAMC Ltd., have been
issued by the Official Liquidator in favour of
the Consortium.

As per the latest valuation report furnished
by registered valuer, the fair value of
MAMC assets is f 17786.61 Lakhs and the
company's share of 48% comes to f 8537.57
Lakhs which is above the total advances paid
to MAMC consortium.

The Company has incorporated a wholly
owned subsidiary in the name of "MAMC
Industries Limited"(MIL) for the purpose of JV
formation. Shareholders agreement, as duly
approved by the Boards of all three members
of the consortium, has been submitted to
Ministry of Defence for necessary approval.
After obtaining the said approval, MIL would
be converted into a JV Company.

Joint Venture Company:

• M/s BEML Midwest Limited (BMWL):

BMWL was formed and registered with the
Registrar of Companies at Hyderabad on
18.04.2007. BEML holds 45% share and
M/s Midwest Granite Pvt. Ltd. (MGPL) and
P T Sumber Mitra Jaya of Indonesia as
partners hold the balance 55% share. The
Company was established to capitalize
on the growing business opportunities in
the contract mining segment. However,

due to certain unauthorized transactions
and the oppression and mismanagement
by the nominees of MGPL, BEML filed an
application before Hon’ble Company Law
Board (CLB) seeking for suitable relief. As
a counter measure, MGPL had also filed a
petition on the matter. CLB vide its common
order dated 01.06.2012 directed the Central
Government to appoint an inspector to
investigate the affairs of BMWL and take
appropriate action. Based on the legal
advice, BEML preferred two appeals before
Hon'ble High Court of Andhra Pradesh at
Hyderabad against the said common order
of CLB. The Hon’ble High Court passed the
order on 19.08.2013, thereby setting aside
the said common order and directing CLB
to proceed with a fresh enquiry, and decide
the issue in accordance with law and merits,
also taking into consideration the report of
investigation as directed by CLB and pass
appropriate orders without getting influenced
by the impugned common order of CLB.
In the meanwhile, the Government has
constituted National Company Law Tribunal
(NCLT) by dissolving CLB and notified that
the jurisdiction is shifted to Hyderabad from
Chennai. The case files were transferred to
NCLT. Regional Director-MCA has submitted
the investigation report dated 29.03.2022
to NCLT. Hon'ble NCLT after hearing the
submissions of the respective Counsels vide
orders dated 25.07.2023, disposed off the
petition as follows:

“In the light of the ruling by the Hon’ble High
Court of Calcutta in r/o Avani Projects &
Infrastructures Ltd. Vs Ornate Tradcom Pvt.
Ltd CA 92 of 2019 (“Para 22), held that the
continuation of proceedings against the
Respondents being impermissible under
law, the present CP No. 55/2008 is hereby
returned, giving liberty to the Petitioner to
pursue this petition after a decision is taken
on approval/ rejection of the resolution plan
in the ongoing CIRP process against the

first respondent Company. Accordingly,
Company Petition is disposed of. After
disposal of the Company petition, no cause
of action survives in all pending lAs, hence
the same are also disposed of. In the result,
the Company Petition is returned.”

Vide NCLT orders dated 26.09.2022,
Corporate Insolvency Resolution Process
(CIRP) was initiated and Smt. Padma
Priyanka Vangala was appointed as the
Resolution Professional. Based upon the
report of the Resolution Professional, that
resolution was not possible, and to initiate
liquidation of BEML Midwest Ltd, the
Hon’ble NCLT vide orders dated 20.10.2023,
ordered liquidation of BEML Midwest Ltd
and appointed Smt. Padma Priyanka
Vangala as the Liquidator. The liquidation of
BMWL is under process.

So far, 14 Committee of Creditors Meetings
have been held by the Liquidator. The claims
filed by BEML were yet again rejected by the
Liquidator. The said order of the Liquidator
is under challenge by BEML before the
NCLT. The said IA filed by BEML challenging
rejection of claims by the Liquidator was
allowed by the Hon’ble NCLT vide orders
dated 16.04.2026 and granted BEML liberty
to file a fresh claim in the appropriate form.
Accordingly, BEML filed FORM D within
the timeline. Further, Liquidator sought
clarifications and the same was replied duly.
Yet again, she has sought final clarifications
dated 21.05.2026 and the same has been
replied on 31.05.2026

Consolidated Financial Statement:

Your Company has prepared the
Consolidated Financial Statement of its
subsidiaries in terms of Section 129(3)
of the Companies Act, 2013, excepting
consolidation with respect to JV Company,
M/s BEML Midwest Limited due to complete
cessation of activities as the matter is sub-
judice, which is attached to this report.

Statutory Auditors:

M/s G Natesan & Co., Chartered Accountants,
were appointed as the Statutory Auditors for
the financial year 2025-26 by the Comptroller
& Auditor General of India.

Cost Auditors:

In terms of Section 148 of Companies
Act, 2013, read with the Companies (Cost
Records and Audit) Rules, 2014, M/s R M
Bansal and Co, Cost Accountants, were
appointed as Cost Auditors for the year
2025-26 to conduct the audit of the cost
records of the Company. The Company
maintains Cost records as specified by the
Central Government under section 148(1)
of the Companies Act, 2013, in respect of
the Railway and Rolling Stocks (Bengaluru
Complex), other Machinery (Truck, Engine,
EM, H&P Divisions) and Power (EM
Division).

Further, as required under the said Rules, the
remuneration payable to the Cost Auditor for
FY 2025-26 was ratified by the members in
the 61^st Annual General Meeting held on

29.09.2025.

Secretarial Auditors:

In terms of Section 204 of the Companies
Act, 2013 read with the Companies
(Appointment and Remuneration of
Managerial Personnel) Rules, 2014, your
Company had appointed M/s MMA &
Partner formerly known as, Practicing
Company Secretaries (PCS), to undertake
the Secretarial Audit of the Company for the
year 2025-26. The Secretarial Audit Report
issued by M/s MMA and the replies to the
observations made in the said Report are
annexed to the Board’s Report as Annexure-

VII.

In addition, an Annual Secretarial
Compliance Report issued by M/s MMA has

been filed with the Stock Exchanges within
the due date from the end of financial year
2025-26.

Further, Pursuant to the amended provisions
of Regulation 24A of the SEBI (LODR)
Regulations and Section 204 of the Act read
with Rule 9 of the Companies (Appointment
and Remuneration of Managerial Personnel)
Rules, 2014, the Board of Directors
have approved the appointment of M/s
MP Sanghavi & Associates, LLP (Peer
Reviewed Firm of Company Secretaries
in Practice) as Secretarial Auditors of the
Company for the period of Five year from
the FY 2026-27 to FY 2030-31. Brief resume
and other details of M/s MP Sanghavi &
Associate, Company Secretaries in Practice,
are separately disclosed in the Notice of 62^nd
AGM.

M/s M P Sanghavi & Associates, LLP
(FRN-L2020MH007000) have given their
consent to act as Secretarial Auditors of the
Company and confirmed that their aforesaid
appointment (if made) would be within the
prescribed limits under the Act & Rules made
thereunder and SEBI (LODR) Regulations.
They have also confirmed that they are not
disqualified to be appointed as Secretarial
Auditors in terms of provisions of the Act &
Rules made thereunder and SEBI (LODR)
Regulations.

C&AG Audit:

The Comments of the Comptroller & Auditor
General of India under section 143(6)(b) of
the Companies Act, 2013 on the financial
statement including consolidated financial
statement and reply thereto, if any, are
appended at page No 239 & 324 to the
annual report.

Frauds Reported by Auditor:

No frauds are reported by the auditors which
fall under the purview of sub-section 12 of
section 143 of Companies Act, 2013.

General disclosure:

Your Directors’ confirm that no disclosure
or reporting is required in respect of the
following items as there was no transaction
on these items during the year under review:-

•    No Significant and Material order was
passed by any regulators or courts
or tribunals that may impact the
going concern status and company’s
operations in future.

•    Official Liquidator in the IBC case No.
CP(IB) No. 237/9/HDB/2020 filed
before NCLT, Hyderabad seeking
Corporate Insolvency of M/s BEML
Midwest Limited has filed Application
bearing No. CP/IB/151/2023 before
Hon’ble NCLT, Bengaluru stating
that as per the Books of Account of
BEML, there was an outstanding
amount of f 230 Lakhs and out
of which, an amount of f 94.49
Lakhs has been paid to the BEML
Midwest and thus, an amount of
f 135.51 Lakhs is due and payable to
the BEML Midwest by BEML. In the
said application Official Liquidator
has requested for admission of the
application and also appointment
of Resolution Professional. Hence
this falls under 'application made
or any proceeding pending under
Insolvency and Bankruptcy Code,
2016'.

•    In the matter BEML has filed detailed
Objection Statement contending
that there is no due from BEML to
BEML Midwest and the Petition is not
maintainable. The Hon’ble Tribunal,
vide Orders dated 03.11.2025
dismissed the said Company
Petition.

•    Official Liquidator in the IBC case No.
CP(IB) No. 237/9/HDB/2020 filed
before NCLT, Hyderabad seeking
Corporate Insolvency of M/s BEML
Midwest Limited has filed Application
IA (IBC) No. 751/2025 against
BMWL and others. Respondent 3
to 16 are BEML's Officials who were
said to be nominated as Directors in
the Board of BMWL. The Application
is to declare that BEML & MGPL
and their nominee Directors have
carried out operations and business
of BMWL with an intent to defraud
the creditors and for fraudulent
purposes and sought to contribute
to the Assets of BMWL to the tune of
f 81,50,75,000/- along with Interest.

•    BEML filed its detail objection
Statement and posted for hearing.
The Petition posted for Objection
statement by other Respondents on

16.07.2026.

•    Details of difference between the
amount of valuation at the time of
one-time settlement and valuation
done while taking loan from banks
or financial institutions are not
applicable to the company.

Extract of Annual Return

An extract of The Annual Return in the
prescribed form in terms of Section 92(3)
of the Companies Act, 2013 read with Rule
12 of the Companies (Management and
Administration) Rules, 2014, is placed at
https://www.bemlindia.in/investors/

Acknowledgements

Your Directors express their hearty thanks
to the Company’s valued customers,
Government of India, Administrative Ministry,
the Ministry of Defence and in particular,

the Department of Defence Production the
Ministry of Railway, M/s Coal India Limited
and its Subsidiaries, M/s Singareni Collieries
Company Limited, M/s Steel Authority of
India Limited, Railway Board, M/s Delhi Metro
Rail Corporation Limited, M/s Bengaluru
Metro Rail Corporation Limited, M/s Jaipur
Metro Rail Corporation, M/s Kolkata
Metro Rail Corporation, M/s Maha Metro
Rail Corporation Limited, Integral Coach
Factory-Chennai, M/s National High Speed
Rail Corporation Ltd (NHSRCL) for guiding
us in High Speed Rail Project, M/s Bharat
Electronics Limited, M/s Bharat Dynamics
Limited, Ordnance Factory Board, Defence
Research & Development Organization
(DRDO), M/s Brahmos Aerospace Pvt. Ltd.,
Indian Space Research Organization, M/s
Hindustan Aeronautics Limited, Aeronautical
Development Agency for their patronage
and confidence reposed in the Company.
The Directors also acknowledge and thank
all collaborators, vendors and other service
providers for their valuable assistance and
cooperation extended to the Company.

The Directors express their appreciation
to the members of Company’s Consortium
of Banks and other Bankers and Financial
Institutions for their continued support to

the Company’s operations. The Directors
also thank all the shareholders/ investors
for reposing continued confidence in the
Company.

The Directors wish to thank the Comptroller
& Auditor General of India, the Principal
Director of Commercial Audit & Ex-officio
Member, Audit Board and Statutory Auditors
for their valued co-operation.

The Directors also acknowledge the
valuable support and assistance received
from various Ministries of Government, in
particular Ministry of Defence, Ministry of
Coal, Ministry of Mines, Ministry of Steel,
Ministry of Railways, Ministry of Housing and
Urban Affairs, Ministry of External Affairs and
Ministry of Home Affairs. The Directors are
also grateful to the Government of Karnataka
and Kerala for the support and co-operation
extended to the Company.

Your Directors take this opportunity to
place on record their appreciation for the
invaluable contribution made and excellent
co-operation extended by the Executives
and Non-Executives at all levels for the
continued progress and prosperity of the
Company.

For and on behalf of the Board of Directors

Place: Mysuru    Shantanu Roy

Date: 29.05.2026    Chairman & Managing Director

1

Inducted as BEML Trainees and will be absorbed into permanent Roll after completion
of training and contract engagement. Apart from these,353 employees were engaged on
tenure-based engagement belonging to SC, ST, OBC and EWS.