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BEML Ltd.

BSE: 500048 Sector: Engineering
NSE: BEML ISIN Code: INE258A01016
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NSE 00:00 | 18 Jul 777.25 -13.60
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OPEN 798.60
PREVIOUS CLOSE 789.30
VOLUME 52490
52-Week high 1947.45
52-Week low 761.80
P/E 24.99
Mkt Cap.(Rs cr) 3,235
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 798.60
CLOSE 789.30
VOLUME 52490
52-Week high 1947.45
52-Week low 761.80
P/E 24.99
Mkt Cap.(Rs cr) 3,235
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

BEML Ltd. (BEML) - Auditors Report

Company auditors report

To the Members of BEML LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of BEML LIMITED("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss(including other comprehensive income) Cash Flow Statementsand the Statement of changes in equity for the year then ended and a summary of thesignificant accounting policies and other explanatory information (herein after referredto as "standalone Ind AS financial statements")

Management's Responsibility for the Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant Rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sManagement and Board of Directors as well as evaluating the overall presentation of thestandalone Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind AS of thefinancial position of the Company as at March 31 2017 and its financial performanceincluding other comprehensive income its Cash Flow and changes in equity for the yearended on that date.

Emphasis of Matter:

We draw our attention to:

a) Note No.14 (i) in respect of Trade receivables from Ministry of Defense (MOD)Rs.925.87 lakhs towards interest rate difference on advance amount received from MOD. Thisamount pertains to interest rate difference between deposit rate and interest recovered @9.50% by MOD during FY 2006-07 2007-08 and 2009-10 from various bills. The matter hasbeen taken up with MOD and it is under their consideration. And Note No. 14(ii) in respectof Trade receivable from MOD Rs.4899.99 lakhs towards exchange rate difference andescalation for import of components in respect of a long term contract for DesignDevelopment and Supply entered into with MOD in 2001. The realisation of thesereceivables depends on the final determination of the amount payable by the MOD.

b) Note No.11 (a) in respect of the amount advanced to MAMC consortium for Rs.5744.31lakhs realization/ settlement of which depends on approval from Ministry of Defence andviable business plan.

c) Note No.39 (G) regarding pending confirmation reconciliation review/adjustment ofbalances in respect of advances balances with government departments trade payabletrade receivable other loans and advances and deposits.

Our opinion is not qualified in respect of the above matters.

Other Matters :

We have issued an Audit Report dated 30th May 2017 ("the original report")at New Delhi on the financial statements as adopted by Board of Directors on even date.Pursuant to the observation of Comptroller and Auditor General of India under section143(6)(a) of the Companies Act 2013 we have revised the said Audit Report. This revisedAudit Report has no impact on the reported figures in the financial statements of theCompany. This Audit Report supersedes the original report which has been suitably revisedto consider observations of Comptroller and Auditor General of India and amendment made tothe point No. (vii) (b) of "Annexure A" to Independent Auditors' Report.

Our Audit procedure on events subsequent to the date of the original report isrestricted soley to the amendment to Clause vii (b) of "Annexure A" to theIndependent Auditors Report (CARO 2016).

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

a. we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c. the Balance Sheet the Statement of Profit and Loss the Cash Flow Statements andthe Statement of changes in equity dealt with by this Report are in agreement with thebooks of account;

d. in our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with relevant Ruleissued there under .

e. being a Government Company provisions of Sec 164(2) of the Act relating todisqualification of directors are not applicable.

f. with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B" : and

g. with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i) the Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 39(D)(1)(a)(ii) to thestandalone Ind AS financial statements;

ii) the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) there were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv) the Company has provided requisite disclosures in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016 and these are in accordance with the booksof accounts maintained by the Company (Refer to Note No. 15 e to the standalone Ind ASfinancial statements).

3. As required by section 143 (5) of the Act we give our separate Report in"Annexure C".

For S R R K Sharma Associates

Chartered Accountants

Firm's registration No.: 003790S

CA S ANANDA KRISHNA Partner

Membership No. : 027986

Place: Bengaluru

Date: 25.07.2017

"Annexure A" to the Independent Auditors' Report

Referred to in paragraph 1 under the heading ‘Report on Other Legal &Regulatory Requirements of our report of even date to the members on the standalone Ind ASfinancial statements of the Company for the year ended March 31 2017.

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) The Fixed Assets have been physically verified by the management in a phasedmanner designed to cover all the items over a period of three years which in ouropinion is reasonable having regard to the size of the company and nature of itsbusiness. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and as informed to us no materialdiscrepancies between the books records and the physical fixed assets have been noticed.

(c) The title deeds of immovable properties are held in the name of the company exceptin the following cases.

1) As explained to us Building costing Rs. 33.00 lakhs (carrying value Rs. 16.92lakhs) situated at Mumbai and Ranchi are pending for registration / khatha transfer .

2) As explained to us Lease Hold land costing Rs. 129.41 Lakhs at Hyderabad for whichregistration will be completed after development of showroom.

3) As explained to us free hold land measuring 555.37 acres at Mysore costing Rs.321.23 lakhs (including additional compensation of Rs. 183.57 lakhs demanded by KIADB) forwhich title deeds have to be obtained from KIADB.

4) Kerala Industrial Infrastructure Development Corporation (KIIDC) has allotted Leasedland measuring 374.59 acres for a lease premium of Rs. 2547.21 lakhs for 99 years leaseperiod w.e.f 01.07.2009. The actual land handed over by KIIDC was measuring 374.16 acresand revised lease premium payable is Rs. 2544.29 lakhs only and execution of formalamendment of lease agreement is pending.

5) As explained to us the Company has taken land measuring 1109 acres and twoworkshops on lease for a period of 10 years vide Lease Agreement dated 5th May 2004w.e.f. 28.04.2004 from M/s Bharat Gold Mines Limited (BGML) and a sum of 100 Lakhs waspaid as non-refundable deposit The Company had incurred on the above land a sum of Rs.1452.95 lakhs (with carrying value of Rs. 1044.44 Lakhs) on Buildings included inProperty Plant and Equipment (Note 3) as at the year end. Vide order dated 09.07.2013the Hon'ble Supreme Court of India upheld the decision of the Union Government to float aglobal tender of BGML assets with an observation about the existence of sub-lease of aportion of the land to BEML Ltd expired on 28.04.2014 to be included in the tenderdocuments. The Company filed an Interlocutory application before the Hon'ble Supreme Courtof India praying for exclusion of land leased to BEML from the purview of global tenderwhich was dismissed. Since the lease agreement provides for the continuation of the leaseeven after the expiring of lease period on 28.04.2014 till the final decision of theCompany/ Government in this regard the operations of the company on the above land iscontinued.

6) As explained to us the Company has taken action to obtain title documents inrespect of the following immovable properties;

a) Flat at Roshan Complex Madras - Rs. 4.04 lakhs

b) Flat at Ashadeep New Delhi - Rs. 2.80 lakhs

c) Office building at Nagpur - Rs. 27.18 lakhs

d) Lease Hold Land at Singrauli - Rs. 1.75 lakhs.

ii) The company has conducted the physical verification of the inventory excludingmaterials lying with third parties and work in progress during the year in accordance withprogramme designed to cover all items over a phased manner. According to the informationand explanation given to us and in our opinion the frequency of physical verification isreasonable. The discrepancies noticed on physical verification of the inventory ascompared to books records which has been properly dealt with in the books of account werenot material.

iii) The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of paragraph 3 (iii) (a) (b) and (c)of the Order are not applicable to the Company.

iv) There are no transactions of loans to directors and being a Government Companyengaged in defence production provisions of Sec 185 and 186 of the Companies Act 2013 inrespect of loans investments guarantees and security are not applicable.

v) The Company has not accepted any deposits to which the provisions of Sections 73 to76 or any other relevant provisions of the Act and the rules framed there under and alsothe directions issued by the Reserve Bank of India.

vi) Maintenance of Cost Records has been specified by the Central Government undersub-section (1) of Section 148 of the Act in respect of the activities carried on by thecompany. We are of the opinion that prima facie the prescribed records have been made andmaintained.

vii) (a) The Company has been generally regular in depositing undisputed statutory duesincluding Provident Fund Employees State Insurance Income-Tax Sales tax Service TaxDuty of Customs Duty of Excise Value added Tax Cess and any other statutory dues withthe appropriate authorities. According to the information and explanations given to us noundisputed amounts payable in respect of the above were in arrears as at March 31 2017for a period of more than six months from the date they became payable.

(b) The details of dues of income-tax sales tax service tax duty of customs duty ofexcise value added tax outstanding on account of any dispute is furnished below :

Name Of The Statute Nature of Disputed Tax Amount (Rs. Lakhs) Period To Which The Amount Relates Forum Where The Dispute Is Pending
Excise Duty incl. Interest and Penalty 32667.63 2003-04 to 2007-08 CESTAT Bangalore
Central Excise Act 1944 Excise Duty incl. Interest and Penalty 722.76 2005-06 to 2010-11 Appellate Authority
National Calamity Contingency Duty 7673.05 2006-07 to 2011-12 CESTAT
Total Excise Duty 41063.44
SERVICE TAX ACT1994 Service Tax incl. penalty 854.91 2004-05 2006-07 & 2010-11 CESTAT Bangalore
Service Tax 494.07 2006-07 to 2010-11 Appellate Authority
Total Service Tax 1348.98
The Customs Act 1962 Customs Duty 7140.61 2006-07 CESTAT Chennai
The Karnataka Municipal Corporation Act 1976 Municipality Taxes 738.11 2012 City Muncipality Council - KGF
Property Tax 109.11 1995-96 to 2005-06 City Civil Judge Bangalore
Total ED Service Tax CD & Property tax 50400.25
Sales Tax /VAT 9.79 2003-04 Maharashtra Sales Tax tribunal
Sales Tax Act of Various States Sales Tax /VAT 5500.70 December 2005 to March 2008 & 2008-09 2009-10 2010-11 Karnataka Sales Tax tribunal
Sales Tax /VAT 892.69 1999-00 2001-02 2002-03 2003-04 2005-06 2006-07 2007-08 2009-10 Revision & Appellate Board of Various States
Sales Tax /VAT 2503.97 From 1983-84 to 2012-13 Other appellate authorities
Total Sales Tax / VAT 8907.15
Grand Total 59307.40
Amount Deposited under protest Central Excise / Customs 243.50

viii) The Company has not defaulted in repayment of loans or borrowings due tofinancial institutions banks Government and to debenture holders.

ix) The company has not raised moneys by way of initial public offer or further publicoffer including debt instruments and term Loans during the year.

x) Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

xi) Being a Government company the provisions of sec 197 read with schedule V to theAct relating to the managerial remuneration are not applicable.

xii) The Company is not a Nidhi Company and accordingly paragraph 3 (xii) of the Orderis not applicable to the Company.

xiii) All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 and the details have been disclosed under Note 39C in thestandalone Ind AS financial Statements as required by the applicable Accounting Standards.

xiv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year and accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

xv) The company has not entered into any non-cash transactions with directors orpersons connected with him and accordingly paragraph 3 (xv) of the Order is not applicableto the Company.

xvi) The Company is not required to be registered under section 45 IA ofthe ReserveBank of India Act 1934 and accordingly paragraph 3 (xvi) of the Order is not applicableto the Company.

For S R R K Sharma Associates

Chartered Accountants Firm's registration No.: 003790S

CA S ANANDA KRISHNA

Partner

Membership No. : 027986

Place: Bengaluru Date: 25.07.2017

"Annexure B" to the Independent Auditor's Report of even date on theStandalone Ind AS Financial Statements of BEML Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of BEMLLimited ("the Company") as of March 31 2017 in conjunction with our audit ofthe standalone Ind As financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial controls over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial controls over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For S R R K Sharma Associates

Chartered Accountants Firm's registration No.: 003790S

CA S ANANDA KRISHNA

Partner

Membership No. : 027986

Place: Bengaluru Date: 25.07.2017

"Annexure C" to the Independent Auditor's Report of even date on theStandalone Financial Statements of BEML Limited

Report as required by section 143 (5) of the Act 2013 relating to the directionsissued by the Comptroller and Auditor General of India.

1) Whether the company has clear title/lease deeds for freehold and leaseholdrespectively? If not please state the area of freehold and leasehold land for whichtitle/lease deeds are not available? Comment: In the following cases clear title/leasedeeds for freehold and leasehold properties are not available with the Company;

i) Free hold land measuring 555.37 acres at Mysore costing Rs. 321.23 lakhs (includingadditional compensation of Rs. 183.57 lakhs demanded by KIADB) for which title deeds haveto be obtained from KIADB.

ii) Kerala Industrial Infrastructure Development Corporation (KIIDC) has allottedleased land measuring 374.59 acres for a lease premium of Rs. 2547.21 lakhs for 99 yearslease period w.e.f 01.07.2009. The actual land handed over by KIIDC was measuring 374.16acres and revised lease premium payable is Rs. 2544.29 lakhs only and execution of formalamendment of lease agreement is pending.

iii) The Company has taken land measuring 1109 acres and two workshops on lease for aperiod of 10 years vide Lease Agreement dated 5th May 2004 w.e.f. 28.04.2004 from M/sBharat Gold Mines Limited (BGML) and a sum of 100 Lakhs was paid as non-refundabledeposit The Company had incurred on the above land a sum of Rs. 1452.95 lakhs (withcarrying value of Rs. 1044.44 Lakhs) on Buildings included in Property Plant &Equipment (Note 3) as at the year end. Vide order dated 09.07.2013 the Hon'ble SupremeCourt of India upheld the decision of the Union Government to float a global tender ofBGML assets with an observation about the existence of sub-lease of a portion of the landto BEML Ltd expired on 28.04.2014 to be included in the tender documents. The Companyfiled an Interlocutory application before the Hon'ble Supreme Court of India praying forexclusion of land leased to BEML from the purview of global tender which was dismissed.Since the lease agreement provides for the continuation of the lease even after theexpiring of lease period on 28.04.2014 till the final decision of the Company / Governmentin this regard the operations of the company on the above land is continued.

iv) Building costing Rs. 33.00 lakhs (carrying value of Rs.16.92 lakhs) situated atMumbai and Ranchi are pending for registration / Katha transfer.

v) Lease Hold land costing Rs. 129.41 Lakhs at Hyderabad for which registration will becompleted after development of showroom.

vi) The Company has taken action to obtain title documents in respect of the followingimmovable properties

a) Flat at Roshan Complex Madras - Rs. 4.04 lakhs

b) Flat at Ashadeep New Delhi - Rs. 2.80 lakhs

c) Office building at Nagpur - Rs. 27.18 lakhs

d) Lease Hold land at Singrauli - Rs. 1.75 lakhs.

2) Whether there are any cases of waiver/write-off of debts/loans/interest etc? if yesthe reasons there for and amount involved ? Comment: There are no instances of waiver ofdebts/loans/interest etc. However Bad debt of Rs.15.23 lakhs were written off during theyear with the approval of the Appropriate Authority as it was not realizable with allpossible efforts being made.

3) Whether proper records are maintained for inventories lying with third parties andassets received as gift/grant(s) from the Government or other authorities?

Comment: The Company is maintaining proper records for inventories laying with thethird parties in the ERP system.

The Company received land measuring 1849 Acres and 5 Guntas at KGF from Government ofKarnataka at free of cost. The expenditure incurred on development of above land iscapitalized and included under Property Plant & Equipment.

For S R R K Sharma Associates

Chartered Accountants Firm's registration No.: 003790S

CA S ANANDA KRISHNA

Partner

Membership No. : 027986

Place: Bengaluru

Date: 25.07.2017

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THECOMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF M/S. BEML LIMITED BENGALURU FOR THEYEAR ENDED 31 MARCH 2017

The preparation of financial statements of M/s. BEML Limited Bengaluru for the yearended 31 March 2017 in accordance with the financial reporting framework prescribed underthe Companies Act 2013 (Act) is the responsibility of the management of the company. TheStatutory Auditors appointed by the Comptroller and Auditor General of India under Section139(5) of the Act are responsible for expressing opinion on the financial statements undersection 143 of the Act based on independent audit in accordance with the standards onauditing prescribed under section 143(10) of the Act. This is stated to have been done bythem vide their Audit Report dated 30 May 2017 and revised report dated 25 July 2017.

I on the behalf of the Comptroller and Auditor General of India have conducted asupplementary audit under Section 143(6)(a) of the Act of the financial statements of M/s.BEML Limited Bengaluru for the year ended 31 March 2017. This supplementary audit hasbeen carried out independently without access to the working papers of the StatutoryAuditors and is limited primarily to inquiries of the statutory auditors and companypersonnel and a selective examination of some of the accounting records. In view of therevision made to include ‘the amount deposited under protest' to clause vii (b) of‘Annexure A' to the Independent Auditor's Report as a result of my audit observationshighlighted during supplementary audit I have no further comments to offer upon orsupplement to statutory auditor's report under section 143(6)(b) of the Act.

For and on behalf of the

Comptroller & Auditor General of India

(Prachi Pandey)

Pr. Director of Commercial Audit

Place: Bangalore

Date: 01 August 2017