Vision

“To contribute to the nation in achieving self

reliance in Strategic Electronics”

Mission
“To strengthen its status as a valued technology
provider to the nation particularly in the areas of
Strategic Electronics meeting the requirements of
Atomic Energy, Defence, Space, Civil Aviation,
Security and such other sectors of strategic,
economic and social importance”
 Contents

1. Board of Directors 5

2. Key Executives 6

3. Chairman’s Statement 10

4. Directors’ Report 14

5. Corporate Governance Report 40

6. Accounts for 2017-18 56

7. Auditors’ Report 96

8. Comments of the C&AG 107

 Board of Directors

Shri Debashis Das, DS Rear Admiral Sanjay Chaubey (Retd.)

Chairman & Managing Director Chairman & Managing Director (From 01.07.2018)
(Upto 01.07.2018) Director (Technical) (27.04.2018 to 30.06.2018)

Shri Kishor Rungta Shri VSB Babu

Director (Finance) Director (Personnel)
(Upto 04.04.2018)

Shri M A Inbarasu
Jt. Secretary (I&M)
Department of Atomic Energy
Lt. Gen. Ashish Ranjan Prasad Shri M Bharath Kumar
AVSM, VSM, ADC Executive Director (E&I)
Signal Officer-in-Chief & Sr. Col Comdt NPCIL
Directorate General of Signals
(Upto 31.07.2018)

Shri Gulshan Rai Wadhwa Shri MSRS Prasad

Independent Director Company Secretary
(From 01.08.2018)
 Key Executives (As on the date of AGM)

CORPORATE OFFICE DEFENCE

REAR ADMIRAL SANJAY CHAUBEY (RETD.) CMDE. SIDDHARTH MISHRA (RETD.)
Chairman & Managing Director General Manager (Defence)
SHRI KISHOR RUNGTA SHRI UTPAL SEN
Director (Finance) Head (Strategic Electronics Division)
SHRI N RAMBABU SHRI G V REDDY
Executive Director (Corporate R&D and Nuclear) Head (Special Products Division)
WG. CDR. HEMANT LOKRAS (RETD.) SHRI K V S N RAJU
Head (Corporate Planning & Performance Monitoring Head (Electronic Warfare Division)
& Corporate Communications)
AEROSPACE & OPERATIONS
SHRI M OSMAN KHAN
Head (Systems & Quality Assurance Group) Dr. BRAJA B NAYAK
General Manager (Aerospace & Operations)
SHRI H SEKHAR MONDAL
Head (Corporate Business & Development Group) SHRI A VENUGOPAL
Head (Antenna Products & Satcom Division)
SHRI MSRS PRASAD
Company Secretary SHRI R N MISHRA
Head (Servo Systems Division)
NUCLEAR
INFORMATION TECHNOLOGY &
SHRI G V RAO
Head (Control & Automation Division) TELECOMMUNICATIONS
SHRI ASIFULLA BAIG SHRI G K SATYANARAYANA
Head (Radiation Detectors & Head (Telecommunications Division)
Instrumentation Division) SHRI K C MEENAKSHI SUNDARAM
SHRI P V S VARA PRASAD Head (Software Solutions & Systems Division)
Head (Control & Instrumentation Division)
FINANCE & ACCOUNTS GROUP
SECURITY SMT. SWARNA SANKARAN
SHRI ANURAG KUMAR Executive Director (Finance)
General Manager (Security) SHRI Y NAGESWARA RAO
SHRI V V SATYANARAYANA General Manager (Finance)
Head (Instruments & Systems Division)
PERSONNEL GROUP
SMT. T PRASEEDA
Head (Security Systems & Projects Division) SHRI B ASHOK KUMAR
Head (Personnel & Administration)

51st Annual Report 2017-18 6

MANUFACTURING / SERVICES STATUTORY AUDITORS
SHRI M S SHARMA M/s Ramanatham & Rao., Chartered Accountants
Head (Electronic Manufacturing
Services Division) COST AUDITORS
M/s Nageswara Rao & Co., Cost Accountants
SHRI N S SEKHAR BABU
Head (Engineering Services Division)
BANKERS
ZONAL OFFICES STATE BANK OF INDIA
BRIG. KULDEEP SINGH DALAL (RETD.) BANK OF MAHARASHTRA
General Manager (North) ANDHRA BANK
SHRI R MAHENDRAN BANK OF BAHRAIN & KUWAIT BSC
Zonal Manager (South) ICICI BANK
SHRI C S RAMTEKE PUNJAB NATIONAL BANK
Zonal Manager (West)
YES BANK
SHRI D DEBNATH HDFC BANK
Zonal Manager (East)
INDUSIND BANK
SHRI V AJAYA BABU
Head (Components Division & Tirupati Unit)

7 51st Annual Report 2017-18

 Financial Performance at a glance - ECIL

(Rs. in Crores)

Particulars 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Gross Turnover 1008 1104 1298 1474 1729 1456 1320 1474 1446 1275

Net Turnover 975 1058 1266 1417 1678 1390 1265 1404 1373 1269

Closing Order Book 1041 1490 1148 2425 1756 1932 1719 1695 2560 2582

Material Consumed 604 713 728 911 1081 754 706 863 822 865

Employee Remuneration 318 296 382 357 365 344 340 315 294 365

Depreciation 10 8 9 10 18 19 26 22 25 27

Profit Before Tax 19 54 22 55 31 68 66 81 84 84

Provision for Tax 6 12 (1) 18 5 21 16 6 26 31

Profit after Tax 13 42 23 37 26 47 50 75 58 53

Earnings per Share (in Rupees) 83 257 140 224 158 290 307 462 353 323

Equity Capital 163 163 163 163 163 163 163 163 163 163

Reserves & Surplus 405 430 443 469 486 522 550 629 667 712

Gross Block 232 237 242 259 284 318 311 149 170 228

Inventory 127 195 157 198 162 165 171 240 281 581

Debtors 641 846 809 1011 1159 1177 1207 1435 1374 1699

Working Capital 685 660 430 343 233 412 379 629 603 821

Net Worth 568 593 606 629 647 682 714 792 851 875

PRV 994 1114 1226 1442 1678 1374 1270 1413 1359 1470

Value Addition 390 401 498 531 597 620 564 550 537 605

51st Annual Report 2017-18 8

 Gross and Net Turnover
Net Turnover
Gross Turnover

2000
1729
1800
1600 1474 1456 1474 1446
1400 1298 1320 1275

1200 1008 1104

1000
800
600
975 1058 1266 1417 1678 1390 1265 1404 1373 1269
400
200
0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Net Worth
875
851
792
714
647 682
629
593 606
568

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Closing Order Book

2425 2560 2582

1932
1756 1719 1695
1490
1041 1148

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

9 51st Annual Report 2017-18

Chairman’s Statement
Dear Shareholders,
It is my honor and privilege to present 51st Annual Report
and audited statement of accounts of company for the
year ended 31 st March 2018. The Company has
increasingly improved its presence while fulfilling the
strategic needs of the Nation. It gives me immense
pleasure to outline the facts, figures and trends to
showcase your company’s strong profile and optimistic
future growth.
Highlights for the Year 2017-18
The Company recorded a turnover of Rs.1275 crore in the
year 2017-18 as against Rs.1446 crore in the year 2016-
17. The company could achieve a PBT of Rs 84 Crores with
a PAT of Rs 53 Crores in 2017-18 against PBT of Rs 84
Crores with PAT of Rs 58 Crores in 2016-17. There are nil
comments from the CAG on the accounts of the company
for this year. As per the DPE guidelines, the 3rd PRC was
implemented and also the wage revision for the workers
is likely to be completed soon.
Major contribution emanated from Defence sector
amounting to 36% of the turnover majorly from Electronic
Fuzes, Strategic Communication Networks and Military
Radios. The Nuclear sector contributed to 20% of the
turnover mainly from supply and installation of Control
And Instrumentation Package and upgradation of various
51st Annual Report 2017-18
Nuclear Power Plants. A share of 17% of turnover came
from IT telecom and e-governance where the company
successfully digitized the rural exchanges, imparted IT
training to various State Departments and supply of
VVPATs to ECI. The Security sector contribution comprising
16% of turnover came from installation of Access Control
Systems and Aerospace contributed 8% mainly from data
reception systems and Antennae for Space Programs.
Significant Achievements
Your Company has achieved significant results with its
prudently designed R&D programs. ECIL played a
pioneering role in ‘Swayam Prabha’, a digital initiative by
MHRD in designing, installing, testing and commissioning
the entire ground video transmission chain in record time
for uplinking all the educational channels to satellite at
BISAG, Ahmedabad.
The 1.8m Tracking Antenna & Control System has been
developed for Automatic Tracking of Unmanned Aerial
Vehicle (UAV) to maintain continuous communication
between UAV and Trailer based Ground Data Terminal
(GDT).
The company has been appraised at maturity level 5 on
the Capability Maturity Model Integration (CMMI) and will
be able to participate in all types of tenders specific to
military, civil and aviation.
10
During this financial year with the relentless efforts of ECIL,
DRDO and BARC, RF seeker was integrated with the
BrahMos Missile and successful field trial conducted at
Pokhran. India is now in the elite group of seeker
manufacturing countries.
The company supplied checkout system for AKASH Missile
delivered to Indian Army. With our in-house expertise, we
sucessfully developed, tested and delivered checkout
system for ASTRA Supersonic air to air missile.
Dominating the space segment the company established
Triband band (S/X/Ku) data reception system for ground
station earth observatory satellite at Antarctica to receive
and transmit remote sensing LEO satellite data to NRSC,
Shadnagar, near Hyderabad.
Outlook for 2018-19
The Company has set a target of Rs. 1800 crore as turnover
in its MoU with the Department of Atomic Energy for the
year 2018-19. The current order book position indicate a
possibility of reaching a landmark figure. The bulk of
executable orders comprise production of EVMs &
VVPATs for the General and State Elections to be held in
2019 and Electronic Fuzes for Ministry of Defence. The
Company would also be executing orders for Antennae,
Security Systems, Legacy Military Radios, Jammers and
Passive Catalytic Recombiner devices for Nuclear Power
plants .
Challenges
The company has a mammoth task of fulfilling the ECI
requirements for the forthcoming General Elections and
has already set the production pace with fully automated
infrastructure for electronic manufacturing and
manpower deployment. The Company is facing major
challenges in incrementing its in-house technology
content and therefore has adopted strategic technology
tie-ups and refining R&D initiatives. The Company is also
in the process of establishing new facilities as centers of
excellence which will provide an edge dealing with new
and upcoming technology areas especially in
manufacturing and characterization of Special Purpose
Machine components, Software Defined Radios,
Simulators, Production of stabalisation platforms for
Sensor Based Systems and state of art facility for high
density PCB Assembly.
The depletion of experienced human resource remains a
serious concern and to overcome that the Company has
hired 50 Graduate Engineer Trainees (GETs) and has plans
to hire additional 92 GETs in the coming year. Concurrently,
11
company has resorted to lateral hiring, induction programs
and also carrying out various human resource
development programs to cater for the emerging
opportunities.
New Facilities Added
The Company has successfully installed state of art
equipment for assembly and manufacture of electronic
equipment. The Company has thus augmented the
manufacturing facility in terms of infrastructure &
machinery to meet the current requirement of EVMs and
VVPATs of ECI for the forthcoming General Elections as
per schedule. The capacity enhancement has also made
Company confident of taking large scale electronic
manufacturing projects in future.
Corporate Governance
The Company’s philosophy on Corporate Governance is
based on principles of transparency, compliance of laws,
procedures and adhering to values and business ethics.
The policies and procedures are scrutinized for their
effectiveness and guided correction is given to maximize
the impact. The Corporate meetings have been made
more meaningful and are aggressively addressing the high
impact issues. The industrial situation was normal and
there has been no loss of man-days during the year.
CSR activities are integrated into its business model and
while furthering the social good beyond the interests of
the firm, the Company has spent Rs 139 lakhs directly into
the CSR activities. The Company is actively undertaking
activities and allocating resources for making Swachh
Bharat Mission a success. The company is successfully
implementing Hindi as official language policy at
Corporate level.
Conclusion
In conclusion, I would like to state that the Company is
well set to fulfill the Country’s aspirations and is confident
in showcasing a performance with the record sales in the
coming financial year.
Thank you,
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
51st Annual Report 2017-18
Former Principal Scientific Advisor to Govt. of India Dr. R Chidambaram discussing ECIL’s new technologies

Dr. R K Sinha, Former Chairman, AEC and Secretary, DAE showing keen interest in the new products of ECIL

51st Annual Report 2017-18 12

Rear Admiral Sanjay Chaubey (Retd.), C&MD addressing engineers on National Technology Day

ECIL officials with Parliamentary Committee on Science and Technology

13 51st Annual Report 2017-18

 Directors’ Report
To
The Shareholders of
Electronics Corporation of India Limited
Gentlemen,
Your Directors have pleasure in presenting the 51st Annual Report on the performance of your Company together
with Audited Financial Statements for the year ended 31st March, 2018.

Performance Highlights
(Rs. in Crores)
Financial Year
Particulars 2017-18 2016-17
a) Turnover (Gross) 1275 1446
b) Production at realisable value 1470 1359
c) Profit before Depreciation, Finance costs and Tax 131 138
d) Finance costs 20 29
e) Depreciation 27 25
f) Profit Before Tax 84 84
g) Provision for Tax 31 26
h) Profit After Tax 53 58
i) Net Worth 875 851
j) Capital Employed 977 727
k) Value Addition 605 537

Financial Performance Share Capital & Unsecured Loans

During the year, the Company recorded a gross
turnover of Rs.1275 Crore compared to Rs.1446 Crore
achieved in the previous year. The value of production
achieved during the year is Rs.1470 Crore as against
Rs.1359 Crore achieved during the previous year. The
Company has recorded Profit Before Tax of Rs.84
Crore compared to Rs.84 Crore in the previous year.
Profit After Tax for the current year is Rs.53 Crore
compared to Rs.58 Crore for the previous year. The
decrease in Profit After Tax is on account of increase
in tax expense during the year.
The authorised share capital of the Company has
remained unchanged at Rs.200 Crore. The called up
and paid up Share capital as on 31.03.2018 stood at
Rs.163.37 Crore. Further, no loans were taken from
the Government during the year.
Dividend
Your Directors are pleased to recommend dividend
@ Rs.80.67 per share of Rs.1000/- each amounting
to Rs.13.18 Crore for the year 2017-18.

51st Annual Report 2017-18 14

Transfer to Reserves
During the year under review no amount is being
proposed to be transferred to General Reserve.
Significant Achievements
Major Orders Executed
During the year, the Nuclear sector posted a turnover
of Rs.254 Crore which is 20% of the Company’s net
turnover. The major contribution came from C&I
systems for Nuclear Power Plant and Nuclear
Instrumentation Package.
The Defence sector contributed Rs.456 Crore forming
36% of the Company’s turnover with major
contributions from Electronics Fuzes, Strategic
Communications Network and Various Military
Radios.
The major products contributing to the Aerospace
segments include Tri-Band Data reception systems
used in remote sensing and various types of Antennas
for Space Programs. This sector did business worth
Rs.108 Crore during the year forming 8% of the
turnover of the Company.
The Security sector added Rs.207 Crore forming 16%
of the turnover of the Company. The major
contributions have been the Access Control Systems,
Video Surveillance Systems and various types of
Jammers.
The IT & e-Governance segment generated Rs.222
Crore which forms 17% of the Company’s turnover
with contribution coming from upgradation of C-DoT
MAX switches to MAX-NG for BSNL, Voter Verifiable
Paper Audit Trail, Digitization for Ministry of Rural
Development and Maharashtra Sales Tax Department
and IT training for various State Departments.
New Products Introduced
Your Company has been persistent in its efforts to
provide indigenous technology solutions to strategic
and allied sectors where technology independence,
self-reliance and nation specific products are the key
drivers.
Your Company has an established R&D facility with
motivated engineers to cater for state-of-the-art
15
needs in the business areas of the Company.
Sustained efforts have been made to develop new
products in association with the leading R&D Centers
and Academic Institutions.
The new products introduced during the year covered
major sectors in which the Company operates. Some
of the new products introduced during the year
include Dual Channel Continuous Air Monitor (CAM),
Check out system for Astra Missile and Launcher,
Electronic warfare software components for Tactical
& Strategic Applications, Wide Band digital receiver
System for Electronic Warfare, 1.8M Tracking
Antenna & Control systems, Radiation Oncology
Information Systems (ROIS), X-Ray Baggage
Inspection Systems EC SCAN 6040 and Secure
Manufacturing Software for EVM and VVPAT
Production. Details of new products introduced
during the year are part of the annexure attached to
this report.
MoU
Your Company has been signing a Memorandum of
Understanding (MoU) every year with the
Department of Atomic Energy, Government of India.
The performance of your Company for the year 2016-
17 has been rated ‘GOOD’. The MoU self-evaluation
report for 2017-18 has been submitted to the
Department of Public Enterprises and the rating is
under finalization by the Government.
Order Book Position
Your Company had an order book position of Rs.3520
Crore as on 1st April, 2018 out of which Rs.2580 Crore
are executable during the year 2018-19. The
Company has booked the total order of Rs.2582 Crore
during the year.
Research & Development
Research & Development is crucial to the survival of
an electronics organization due to its fast-changing
nature, continuous technology changes and
competition. ECIL has always accorded a high priority
for R&D with focus on innovation and continual
improvement in products and processes. While each
strategic business unit carries out development
51st Annual Report 2017-18
activities in its areas of interest, the Corporate R&D
unit coordinates with all the SBUs for undertaking
development activities which involve more than one
SBU.
Your Company also collaborates closely with several
national laboratories and premier engineering
institutions and converts the technologies developed
by them into commercial products. Your Company
also enlists their support in developing new products
as well as enhancements to the existing products to
meet the changing customer requirements. The new
products and enhancements introduced during the
year are provided in the Annexure to this report.
Quality
• Surveillance audits of ISO 9001:2008 has been
completed in AP&SD, ISG, TCD, and CSD& EMSD
divisions.
• Internal Audits of ISO 9001:2008 has been
completed in SSD, CAD, RID, BSD, SED and SPD
divisions.
• Quality Management: Re-assessment Audit of
SHE Management System completed during
October, 2017 and recommended for extension
of certification.
• Re-certification Audit of NABL Desktop
Surveillance completed during September, 2017
and recommended for continuation of the
accreditation for Calibration & Measurements
Laboratory.
New Facilities
The Company has installed state-of-the-art
equipment for assembly and manufacture of
electronic equipment. The Company has therefore
augmented the manufacturing facility to meet the
current requirement of EVMs and VVPATs of ECI for
the forthcoming General Elections as per schedule.
The capacity enhancement has also made Company
confident of taking large scale electronic
manufacturing projects in future.
51st Annual Report 2017-18
Conservation of Energy, Technology
Absorption and Foreign Exchange
Earnings and Outgo
The Company’s initiatives in sustainable development
led to a reduction of consumption of water and
power.
Particulars of Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo
as required pursuant to Section 134(3)(m) of the
Companies Act, 2013 read with Rule 8 of the
Companies (Accounts) Rules, 2014, as amended from
time to time are given in Annexure - ‘A’ to this report.
Particulars of Employees
Pursuant to Section 197(12) of the Companies Act,
2013, read with Rule 5 (1) of The Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014 as amended, none of the
employees of the Company were in receipt of
remuneration in excess of limits prescribed under the
said rules.
Extract of Annual Return
Extract of the Annual Return in Form MGT-9 is
annexed herewith as Annexure ‘B’ to this report.
Loans / Guarantees / Investments
Particulars of Investments under Section 186 of the
Companies Act, 2013 are provided in Financial
Statements (refer Note No.7). Particulars of loans and
guarantees under Section 186 of the Companies Act,
2013 are nil.
Management Discussion and Analysis
The Management Discussion and Analysis Report
required under the guidelines issued by the
Department of Public Enterprises, Government of
India on Corporate Governance for Central Public
Sector Enterprises (CPSEs) is annexed as Annexure
‘H’ to this report.
16
Human Resources
Your Company considers its human resource as its
most vital asset and has been making significant
investments in its training and skill development. The
investment in enhancement of knowledge through
training and skill development of its human resources
yielded better results in improving their performance
year after year. Your Company believes that, in the
current dynamic scenario, the assessment of human
resource requirement and the skill sets to meet the
emerging business requirements should be an on-
going process. Accordingly, the management
continuously monitors the requirements and puts in
place appropriate recruitment and training policies
Category Group A
Total employees 1181
Scheduled Caste 199
(16.85%)
Scheduled Tribes 88
(7.45%)
During the financial year 2017-18 Corporate Learning
and Development Centre has continued its emphasis
on developing the technical, functional, managerial
and leadership competencies of employees and
workmen.
In-House Training
During the year 2017-18 Corporate Learning and
Development Centre has organized 20 In-house
Training Programmes / Seminars (14 Technical & 6
Non-technical) on various technical, functional and
management topics of current interest by eminent
faculty from reputed Institutions, as well as internal
faculty. This has resulted in 1204 man days of training
and an expenditure of Rs.15,86,649/-.
External Training
During the year 2017-18, Corporate Learning and
Development Centre processed nominations of 114
employees for participating in the training
17
to address the depletion on account of
superannuation as well as the need for new skill
sets.
During the year total 22 persons were recruited
including one higher appointment. A total of 268
employees separated from the Company.
As on 31 st March, 2018 the manpower of the
Company stood at 1992 employees including two
functional Directors, one C&MD and three fire staff
joined on deputation. Your Company has been
positively implementing the Government directives
regarding reservations. The group-wise breakup
including SC / ST employees in the Company as on
31st March, 2018 is as under:
Group B Group C Group D
236 418 154
35 74 44
(14.83%) (17.70%) (28.57%)
41 53 4
(17.37%) (12.68%) (2.60%)
programmes organized by various reputed training
organizations on Technology and Management
Development themes resulting in 623 man days of
training and an expenditure of Rs.48,64,815/-
towards course fee.
Employee Relations
Employee relations continued to be smooth, cordial
and harmonious across the Company. Regular
interactions took place among the management,
executives and the workmen through the various
forums such as the Corporate Management
Committee at the apex level and the Divisional
Production Committees at base level. The industrial
relations situation was normal during the year 2017-
18.
Personnel & Welfare
Various welfare programmes were organized for the
benefit of employees and their families including
51st Annual Report 2017-18
programmes addressing specific needs of sections of
employees. Employees are encouraged to participate
in various programmes and sports meets organized
by DAE.
Workers participation in Management: The
participation of workmen and officers’
representatives in the joint forums is as given below:
a) Participation in Sectional/Divisional
Production: The Divisional Production
Committees are constituted under the Scheme
of Workers Participation in the Management.
The Head of the Division concerned is the
Chairman for the Committee and the members
are drawn from Production shops, Quality
Control, Materials Planning, Personnel and
Finance Groups. The meetings are convened
periodically for discussion on the issues
pertaining to working plans to realize the
production targets, sales targets and sundry
debts, order booking status, etc.
b) Corporate Management Committee: It is a high-
level policy making body at the corporate level.
The committee is headed by Chairman &
Managing Director and Functional Directors,
Executive Directors, General Managers and
Heads of business Divisions/Groups are the
members. The President and Secretary of ECIL
Workers’ Union and ECIL Officers’ Association
are the special invitees to the meetings of the
committee.
c) Apex Committee: The Apex Committee is
constituted under the Scheme of Workers
Participation in Management headed by
Chairman & Managing Director and other
members include Functional Directors on the
Board, Head (Personnel Group) and President
& General Secretary of ECIL Workers’ Union and
President and Secretary of Officers’ Association.
The Committee meets periodically and
deliberates and makes suitable
recommendations on the issues concerning
improvement of production, performance and
other major policy issues for smooth functioning
and maintaining harmonious industrial relations
in the Corporation.
51st Annual Report 2017-18
Implementation of the Rights of
Persons with Disablities Act, 2016
Your Company has a total 138 PH persons employed
as apprentices & consultants. Company is
implementing the guidelines issued by the
Government of India from time to time with regard
to recruitment, promotions, grant of physically
handicapped allowance, free transport and income
tax exemption. The Company is taking care of Safety
requirements of PH employees at workplace
keeping in view of their disability by providing
necessary safety gadgets depending on their nature
of work.
a) Separate entry/exit gates are available at Main
Gate to facilitate free movement during
incoming/outgoing shift timings. Further, five
minutes grace time is allowed to the disabled
persons at the time of outgoing after attending
their duties.
b) Suitable sanitary fittings are provided at
the toilets for the convenience of such
employees.
c) The orthopedically handicapped employees
who could not walk from Main Gate to work
locations are being permitted to enter into the
factory on their Trio Motor Cycle up to the work
spot.
Implementation of RTI Act
Your Company has posted the information required
under the provisions of Section 4 (1)(b) of Right to
Information Act, 2005 on the website of the
Company. During the year the Company has received
163 RTI requests for information in addition to the
16 requests which are pending at the end of the
previous year. Information was provided against
145 requests, 10 applications were returned due to
non-conformity and the balance 24 were
pending for disposal as on 31 st March, 2018.
Most of the requests were for information on
recruitment, service related and commercial related
matters.
18
Implementation of Official Language
Policy
Your Company during the year implemented, the
provisions of the Official Language Policy at Corporate
level. The following efforts were made towards
implementation of Official Language:
Training
Training in Hindi Correspondence has been imparted
to employees in Four Hindi workshops. Two sessions
of Hindi Typing Course classes have been conducted
for those who are having working knowledge of Hindi
and two sessions of Hindi Course classes were
conducted for those who are not having working
knowledge of Hindi.
Competitions & Publications
Various Hindi competitions were conducted for Hindi
and Non-Hindi speaking employees during ‘Hindi
Week’ and participation of employees in ‘TOLIC (U)’
Hindi competitions. ‘World Hindi Day’ was celebrated
on 10th January, 2018. ‘Corporate R&D Report 2017’,
‘ECIL in Cyber Forensics’ and ‘RDE-Read Me First’ user
manual has been published in bilingual. ‘ECIL Gaurav’
half-yearly Hindi magazine is being published
regularly.
Official Language Inspections
Committee of Parliament on Official Language has
inspected Zonal Office (North), New Delhi on
11.07.2017; Zonal Office (West), Mumbai on
06.11.2017 and Zonal Office (East), Kolkata on
20.02.2018 and made positive comments on
Implementation of Official Language Policy. The
documents placed before the Committees of
Parliament, various notes submitted to the
Government, MoUs, etc., have been prepared in
bilingual. Hindi Incentive Scheme for use of Hindi in
official work and special Hindi Incentive allowance
for Typists/Stenographers for doing their official work
in Hindi, in addition to English has been implemented.
46th Half Yearly Meeting and Annual Programme of
TOLIC (U) was hosted by the Corporation.
19
Awards
The Corporation has been awarded ‘Rajbhasha
Shield’ (1st Prize) by the Town Official Language
Implementation Committee (Undertakings),
Hyderabad-Secunderabad for outstanding
implementation of Official Language Policy.
Disclosure Under the Sexual
Harassment of Women at Workplace
(Prevention, Prohibition and
Redressal) Act, 2013
The Company has put in place an Anti-Sexual
Harassment Policy in line with the requirements of
the Sexual Harassment of Women at the Workplace
(Prevention, Prohibition & Redressal) Act, 2013. As
per the requirements of the Act, an Internal
Complaints Committee (ICC) has been set up to
redress complaints received regarding sexual
harassment. All employees (permanent, contractual,
temporary and trainees) are covered under this
policy. No complaints were received during the year
and there are no pending complaints at the beginning
of the year.
Awards
During the year your Company was felicitated by
Hon’ble President of India for significant contribution
to ‘SAWYAM PRABHA’ programme, a Digital Initiative
operational under Ministry of Human Resources
Development, Government of India.
Joint Venture
ECIL-Rapiscan Limited, Joint Venture Company is into
the business of manufacture and selling of X-ray
baggage inspection systems. During the year the JV
Company has achieved a turnover of Rs.100.26 Crore
against a target of Rs.100 Crores. The turnover
consists mainly of Rs.60.76 Crores from sale of X-Ray
Inspection Systems (XBIS) & Spares and Rs.39.49
Crores from sale of services. The profit after
depreciation & before tax of the Company for the
Financial Year 2017-18 is Rs.8.46 Crores (after making
provision for bad and doubtful debts of Rs.3.52
51st Annual Report 2017-18
Crores) compared to Rs.6.07 Crores (after making the
provision for bad and doubtful debts of Rs.2.34
Crores) for the previous financial year.
Since the envisaged Make in India program of the
XBIS did not take off as envisioned in the formation
of JV, a proposal for dissolution of the Joint Venture
Company has been proposed by the Joint Venture
partner. A valuer was appointed for conducting the
financial due diligence of the Joint Venture. Based
on the valuation report submitted, the joint venture
partner has proposed an offer to take over the ECIL
share and your Company is yet to take a decision in
this regard. Further, presently no products are being
manufactured and sold by ECIL to the Joint Venture
Company as a part of JV agreement. Accordingly, the
financial statements of JV Company are not
consolidated with that of ECIL and the statement
indicating the salient features of Joint Venture is also
not attached to this report.
Corporate Governance
The Department of Public Enterprises has laid down
the Guidelines of Corporate Governance for CPSEs.
The Department of Atomic Energy (DAE), the
Administrative Ministry of ECIL has directed to
comply with the guidelines.
The Board Members and senior management have
reaffirmed the compliance with the Code of Conduct.
A report on Corporate Governance is given as
Annexure ‘C’.
The Company has obtained a Certificate from Shri
N.V.S.S. Suryanarayana Rao, Practicing Company
Secretary regarding compliance of conditions of
Corporate Governance as indicated in the DPE
Guidelines. The Compliance certificate is annexed to
this report as Annexure ‘D’.
The practicing Company Secretary has observed that
the Company has complied with the conditions of
Corporate Governance as indicated in the DPE
Guidelines except for the appointment of
Independent Directors of the Board and composition
of Independent Director in Audit, Remuneration
Committee, CSR committee and the meetings of the
Audit Committee. It is hereby informed that the
appointment of Independent Directors is done by the
Government of India and the said appointment of
Independent Directors is pending at the appropriate
authority. Government of India has communicated
its decision of appointing one Independent Director
on the Board of Directors of the Company as on the
date of this report.
Sustainability Report
The DPE guidelines on Sustainable Development for
CPSEs require CPSEs to disclose their Sustainable
Development efforts in a ‘Stand Alone Report’ or as
a separate chapter in the Annual Report. Pursuant
to this requirement, the following activities have
been undertaken during the year 2017-18:

S. Sustainability Project Achievement

No. undertaken by the Company

1. Energy Conservation i) Replacement of 400W & 250W Conventional type security

lighting with 200W and 125W LED lighting respectively.
ii) Replacement of 80W Fluorescent Lighting with 40W LED
Lighting in all the renovated and modernized areas.
iii) Replacement of Conventional Window Air Conditioning Units
with Star rated Energy efficient Air Conditioning Units.
2. Second Effluent Treatment Second ETP plant is now in operation and treated water is 100%
Plant (ETP) used for gardening / horticulture purpose by installing 5 HP solar
based pump set supplied by BARC.

51st Annual Report 2017-18 20

 S. Sustainability Project
No. undertaken by the Company
3. Bio-gas plant
4. Rain Water Harvesting Pits
with injection bore wells.
5. Tree Plantation
6. Vermi Compost Plant
7. Dry Leaves Composting Pits
Achievement
Canteen waste & bio-degradable waste of gardening / horticulture
is planned to convert into Bio-gas and compost by installing a 500Kg
/ per day capacity plant. Budget Provision of Rs.35 Lakhs is earmarked
for the job and to be taken up in FY 2018-19.
25 Numbers of 9 Cubic Meter capacity rain water harvesting pits
with 6 inch diameter injection bore wells were constructed &
commissioned. It was observed that the ground water table is
increased due to rain water recharge in the range of minimum 1.2
meter to 10.2 meter depth in the bore wells.
For the year 2017-18, 2000 tree saplings were planted which resulted
in increasing Green Cover in the factory premises.
New Vermi Compost plant was commissioned and every 45 days
cycle produces a Thousand Kilograms of manure. It is used for in-
house gardening & nursery development purpose.
Four numbers of 10 Cubic Meter Dry Leaves composting pits were
dug at various places in the factory. Dry leaves were buried in layers
of one feet depth and covered with a 5 inch layer of earth and again
one layer of dry leaves & earth over it to allow the dry leaves to bio-
degrade naturally. After a year the matured earth is excavated back
and used to improve the soil conditioning for development of existing
and new lawns.

Statutory Auditors from the Comptroller and Auditor General of India

The Statutory auditors of your Company have been
appointed by the Comptroller and Auditor General
of India. M/s. Ramanatham & Rao, Chartered
Accountants have been appointed as statutory
auditors of the Company for the year 2017-18. The
Company’s responses to the statutory auditors’
qualifications/reservations on the accounts of the
Company for the year ended 31.3.2018 are furnished
at Annexure ‘E’ to this report.
Comments of the Comptroller and
Auditor General of India
The Annual Accounts for the year ended 31st March,
2018 have been reviewed by Comptroller and Auditor
General (C&AG) of India. There are nil comments
under Section 143(6) of the Companies Act, 2013 on
the Accounts of your Company for the year 2017-18
as given in ‘Annexure F’ to this report.
Cost Auditors
Pursuant to Section 148 of the Companies Act, 2013
read with the Companies (Cost Records and Audit)
Rules, 2014 (as amended), the Cost Records
maintained by the Company in respect of its
manufacturing activities are required to be audited
by the Cost Auditor. The Board of Directors has
appointed M/s Nageswara Rao & Co., Cost
Accountants, Secunderabad as Cost Auditors for the
Financial Year 2017-18. The Cost Audit Report for the
Financial Year 2017-18 will be filed with the Central
Government within the stipulated time.

21 51st Annual Report 2017-18

Vigilance
During the year 2017-18, the thrust of the Corporate
Vigilance Department (CVD) was to incorporate
vigilance as a part of all activities and make it a
managerial function. Continuing with the initiatives
taken in the previous years, the CVD focused on
preventive vigilance in a proactive and participative
manner.
During the year, two complaints were received and
they are in enquiry stage. One departmental inquiry
proceeding was completed. Final order shall be
issued shortly for conclusion. Business Divisions are
maintaining searchable vender database and
continuing the e-tendering system. 1020 Executives
have filed Immovable Property Returns online.
The CBI has registered a FIR, based on a complaint
referred in the year 2013 and the same is under
investigation.
Vigilance Awareness Programs have been conducted
during vigilance awareness week in November 2017
and GET induction training program.
Related Party Transactions
There were no materially significant related party
transactions with the Company’s Promoters,
Directors, Management or their relatives, which
could have had a potential conflict with the interests
of the Company. Transactions with related parties
that were entered into during the financial year were
on an arm’s length basis and were in the ordinary
course of business. All Related Party Transactions are
placed before the Audit Committee as also the Board
for approval, if required. Members may refer the note
no. 46 to the accounts for details of related party
transactions.
Compliance of applicable Secretarial
Standards
Your Company has complied with the provisions of
applicable secretarial standards with respect to
Meetings of Board of Directors and General Meetings
issued by the Institute of Company Secretaries of
India.
51st Annual Report 2017-18
Board Meetings, Change in Directors
and Key Managerial Personnel
During the year six Board meetings were held, the
details of which are given in Corporate Governance
Report which is annexed to this report.
Following changes took place in the Directorships &
Key Managerial Personnel of the Company:
Shri V S B Babu, Director (Personnel) was relieved
with effect from 4th April 2018 on completion of his
tenure as per the appointment terms.
Shri Ashish Kumar Srivastava, who was appointed as
Company Secretary on 2 nd November, 2017 has
resigned with effect from 28th February, 2018 quoting
personal reasons.
Shri Debashis Das, Chairman & Managing Director
has relieved from additional charge as Chairman &
Managing Director on 1st July, 2018 on appointment
of Rear Admiral Sanjay Chaubey (Retd.) as regular
Chairman & Managing Director.
Lt. Gen Ashish Ranjan Prasad, AVSM, VSM, ADC has
relinquished his directorship on 31st July, 2018 on his
retirement as Director Signal Officer-in-Chief and Sr.
Col. Commandant, Indian Army.
The Directors would like to place on record their
sincere appreciation for the services rendered and
guidance provided by them during their tenure.
Rear Admiral Sanjay Chaubey (Retd.), was appointed
as Director (Technical) with effect from 27th April,
2018 and later assumed as Chairman & Managing
Director on 1st July, 2018.
Shri MSRS Prasad was appointed as Secretary of the
Company with effect from 1st March, 2018.
Shri Gulshan Rai Wadhwa, has been appointed as
part-time Independent Director on the Board of the
Company with effect from 1st August, 2018 by the
Government of India.
Directors’ Responsibility Statement
Pursuant to Section 134(3)(c) and 134(5) of the
Companies Act, 2013, to the best of their knowledge
and belief and according to the information and
22
explanations obtained by them, your Directors state
that:
a) in preparation of accounts for the financial year
ended 31 st March, 2018, the applicable
accounting standards have been followed
excepting a few minor deviations due to
practical constraints, which have been disclosed
in the notes forming part of the Accounts as per
Sec. 129(5) of the Companies Act, 2013;
b) the accounting policies have been selected 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 as on 31.3.2018 and of
the profit and loss of the Company for the year
ended on that date;
c) proper and sufficient care for the maintenance
of adequate accounting records in accordance
with the provisions of Companies Act, 2013 for
safeguarding the assets of the Company and for
preventing and detecting fraud and other
irregularities;
d) the Accounts have been prepared on a ‘going
concern’ basis;
e) internal financial controls have been laid down
and that such controls are adequate and were
operating effectively during the year ended 31st
March, 2018; and
f) proper systems have been devised to ensure
compliance with the provisions of all applicable
laws and that such systems were adequate and
operating effectively.
Corporate Social Responsility
Pursuant to the provisions of Section 135 of the
Companies Act, 2013, the Companies (Corporate
Social Responsibility Policy) Rules, 2014 read with
various clarifications issued by Ministry of Corporate
Affairs and DPE Guidelines, the Company has
undertaken various activities as per the CSR Policy
of the Company. The Programmes/Initiatives/
Projects are taken-up in line with the Schedule-VII of
the Companies Act, 2013 which are duly incorporated
in our CSR Policy and forms the guiding principle for
23
all our programmes. The Company has a Corporate
Social Responsibility Policy approved by the Board
of Directors.
Pursuant to the Rule 8 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014, a report on
CSR activities for the financial year 2017-18 is
annexed herewith as Annexure ‘G’.
Micro, Small and Medium Enterprises
Government of India, Ministry of Micro, Small and
Medium Enterprises, vide order dated 23rd March,
2012, notified the public procurement policy in
respect of procurement of goods and services
produced and provided by Micro and Small
Enterprises. As per the directive, every Central
Ministry or Department or Public Sector Undertaking
shall sent an annual goal of procurement from Micro
and Small Enterprises from the Financial year 2012-
13 and onwards with the objective of achieving an
overall procurement of products and services
rendered by Micro and Small Enterprises to the
extent of minimum of 20% of total annual purchases.
Necessary provision has been made in all the tenders
stating the eligibility of MSEs to participate in the
tender. Vendor development programs are planned
and conducted on regular intervals with the
assistance of state MSME- Development Institute,
Hyderabad. The Company regularly updates the
procurement details at public procurement policy
monitoring portal of MSME Sambandh. Your
Company has complied with the norms as prescribed
for procurement during the year.
Statutory Disclosures
a) There was no change in the nature of
business of the Company during the financial
year 2017-18.
b) The Company has not accepted any public
deposits during the financial year 2017-18.
c) No significant and material orders were passed
by the Regulators or Courts or Tribunals
impacting the going concern status and
Company’s operations in future.
d) The Company maintains an adequate system of
51st Annual Report 2017-18
 internal controls including suitable monitoring
procedures, which ensure adequate and timely
financial reporting of various transactions,
efficiency of operations and compliance with
statutory laws, regulations and Company
policies.
e) There are no material changes and
commitments affecting the financial position of
the Company which have occurred between the
end of the financial year i.e. 31.3.2018 and the
date of this report.
Acknowledgement
Your Directors place on record their deep
appreciation and gratitude for the support and
encouragement received from the Department of
Atomic Energy and its constituent units such as
Bhabha Atomic Research Centre, IGCAR, RRCAT,
VECC, NFC, AMD, AERB, NPCIL and BHAVINI, Defence
Research and Development Organization, Ministry of
Defence and its constituent units, Indian Space
Research Organization, Election Commission of India,
Place: Hyderabad
Date: 24.09.2018
51st Annual Report 2017-18
Department of Information Technology, Department
of Science and Technology, Ministry of Shipping,
Ministry of Finance, Ministry of Civil Aviation,
Ministry of Corporate Affairs, Ministry of Home
Affairs, Department of Public Enterprises and other
ministries and Departments of Government of India,
the Government of Andhra Pradesh and Government
of Telangana. Your Directors express their sincere
thanks to the Statutory Auditors, the Chairman and
members of the Board Sub-Committees and the
office of the Principal Director and Director General
of Commercial Audit, Bankers, Foreign Collaborators,
all the customers and agencies, who are directly or
indirectly associated with your Company.
The Board wishes to place on record its appreciation
for the efforts and invaluable contribution made and
excellent co-operation extended by the employees
and executives at all levels which has resulted in the
Company achieving a good performance during the
year and hopes that the Company would scale greater
heights in the years to come.
For and on behalf of the Board of Directors
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
24
 ANNEXURE – ‘A’
TO THE DIRECTORS’ REPORT
Information required to be disclosed in accordance
with Section 134(3)(m) of the Companies Act, 2013
read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 regarding conservation of energy,
technology absorption and foreign exchange
earnings and outgo.
A. Conservation of Energy
Current Year Previous Year
(2017-18) (2016-17)
Units Consumed 80,91,360 kWh 80,91,200 kWh
Total Amount Rs.6,73,88,998/- Rs.6,89,09,492/-
Rate/Unit Rs.8.32/- Rs.8.51/-
Own Generation
• 500kWp Solar PV Power plant installed on IT&TG
rooftop of ECIL and is in operation.
• 2 Nos of 125KVA & 01 No of 250 KVA DG sets
located in NID Sub-station, Admin & NPR
Building respectively were installed to meet the
emergencies in case of total power failure to
ECIL.
• Because of the new Energy Efficient Air
conditioning systems, the energy consumption
was maintained as minimum as possible.
The Steps Taken or impact on conservation of energy
a) Replacement of 80W Tube light fixtures with
36W LED Lighting fixtures and conventional
street light fixtures with LED Lighting fixtures in
different divisions and service areas.
b) Replacement of Window Air Conditioners with
Star rated Energy efficient Split Air conditioners
and conventional type Air conditioning plants
with Energy efficient compact Air conditioning
plants in rooms and labs.
c) Preventive maintenance of Sub-station
equipment like HT & LT Switchgears, Protection
system and Solar water heating system for
better performance of the system.
25
i. The steps taken by Company for utilizing
alternative sources of energy:
a) 500KW PV Solar power plant installed on
rooftop of IT&TG Building and generated
power. During the period from September-
2017 up to March-2018 the plant has
generated 4,63,847 kWh Units.
ii. The capital investment on energy conservation
equipment:
a) Rs.35,00,000/- spent on replacement of
conventional type lighting with Energy
efficient LED lighting.
b) Rs.50,00,000/- spent on replacement of
conventional type Air-conditioning units
with Energy efficient Air conditioning units.
B. Technology absorption, adaptation and
innovation
i. Efforts, in brief made, towards technology
absorption, adaptation and innovation
a) An MoU was signed with ISRO Telemetry
Tracking and Command Network (ISTRAC),
Bengaluru for Testing of 11-meter Antenna
with ‘S/X band Feed’ at DSCC, Bhopal,
ISTRAC Ground Stations, Bengaluru &
Lucknow.
b) An MoU was signed with Centre for
Development of Advanced Computing(C-
DAC), Thiruvananthapuram, for design,
development of deployable Manpack
Software Defined Radio units along with
complete Transfer of Technology (ToT) to
ECIL.
c) Development of new products.
ii. Benefits derived as a result of the above efforts
e.g. Product Improvement, Cost Reduction,
Import Substitution, etc.
a) The development of Dual channel Alpha/
Beta CAM resulted in import substitution
and cost reduction.
51st Annual Report 2017-18
 b) The development of the Check-Out System
for Astra Missile and Launcher resulted in
self-sufficiency in strategic sectors.
c) The development of the Electronic Warfare
(EW) Software Suite resulted in increasing
the indigenous content of the System.
d) The development of Wide Band Digital
Receiver system for EW resulted in Self-
reliance in critical technologies.
e) The development of 1.8m Tracking
Antenna & Control System resulted in
enhanced commitment to “Make in India”
program.
f) The development of Radiation Oncology
Information System (ROIS), resulted in
better patient services.
g) The development of X-Ray Baggage
Inspection System (EC SCAN 6040) resulted
in release of indigenous security systems
for Nation’s needs.
h) The development of Secure Manufacturing
Software (SMS) demonstrated the
Competence to establish large
manufacturing infrastructure to the
requirements of the company.

iii. Imported technology (imported during last 3 years reckoned from beginning of financial year)
Technology imported during the last 3 years (reckoned from the beginning of the financial year)
Sl. Name & Address of Product Year of Technology Technology been If not fully
No. the collaborator Import Imported fully absorbed absorbed
give reasons
Nil

iv. Research & Development Beta CAM benefited Indian Nuclear

a. Specific Areas in which R&D is carried out Program and enhanced the Nuclear
portfolio of the Company. All the
i. Dual Channel Continuous Air Monitor requirements of such instruments for the
(CAM) upcoming nuclear plants will be supplied
ii. Check-Out System for Astra Missile and by ECIL.
Launcher ii. The Check-Out System for Astra Missile and
iii. Electronic Warfare Software Components Launcher is very useful in taking forward
for Tactical & Strategic Applications the missile programs and Company will get
iv. Wide Band Digital Receiver System for Orders for supply of similar systems.
Electronic Warfare iii. Electronic Warfare (EW) Software Suite
v. 1.8m Tracking Antenna & Control System development contributed for expansion of
company’s business in defence sector.
vi. Radiation Oncology Information System
(ROIS) iv. Development of the wide Band Digital
Receiver system for Electronic Warfare
vii. X-ray Baggage Inspection System EC SCAN contributed for enhancement of company’s
6040 product profile in defence sector.
viii. Secure Manufacturing Software for M3 v. 1.8m Tracking Antenna & Control System
EVM and VVPAT Production development enabled the Automatic
b. Benefits derived as a result of the above Tracking of Unmanned Aerial Vehicles
R&D (UAV) to maintain continuous
i. Development of the Dual channel Alpha/ communication between UAV and Trailer
based Ground Data Terminal (GDT).

51st Annual Report 2017-18 26

 vi. The development of Radiation Oncology C. Foreign Exchange Earnings and outgo:
Information System (ROIS) improved I. During the year, the Company exported
Radiotherapy treatment of cancer patients (including third party exports) Rs.36.34 Crores
and enhanced Company’s product profile worth of its products.
in e-governance sector.
II. The total exchange used and earned
vii. X-Ray Baggage Inspection System (EC SCAN
6040) development resulted in expansion (Rs. in Crores)
of Company’s product profile in security PARTICULARS 2017-18 2016-17
sector. Orders are expected for this product
from transportation hubs, public Foreign exchange used 524.65 478.35
establishments and government sites. Foreign exchange earned 1.89 1.32
viii. The Secure Manufacturing Software (SMS)
developed will be utilised for the D. Facilities Setup, Successful Trails Conducted
production of EVMs and VVPATs ordered by During 2017-18
Election Commission of India. This i. Establishment of Rapid Prototype Facility with
development preserves and ensures the 3D Printer:
integrity of sensitive data of EVMs and
ECIL setup Rapid Prototype (RPT) Facility. The
VVPATs.
facility consists of Rapid Prototype System with
c. Future plan of action (for R&D in Products 3D Printer and finish touch smoothing station.
and Technologies) This will aid ECIL in rapid modelling and
a) RF seekers for other missile programs prototyping for R&D and production
applications.
b) Cyber Security products
ii. Setting up Data Reception System at
c) Secure Communication Products
Antarctica:
d) Radiation detectors and monitoring
ECIL successfully established a Triband (S/X/Ka)
systems
Data Reception System (DRS) for Ground Station
e) Safe and Secure Programmable Logic Earth Observation Satellites at Antarctica. This
Controllers station receives and retransmits remote sensing
f) Big data Analytics LEO Satellite data to NRSC, Shadnagar, India.
g) Industrial Internet of Things iii. Testing of Seeker:
X band Seeker jointly developed by DRDO, ECIL
d. The expenditure incurred on Research and and BARC was successfully test fired with
Development BrahMos missile.
(Rs. in Crores)
iv. Flight Trials of Airborne SATCOM Terminal of
PARTICULARS 2017-18 2016-17 AEW&C System:
Capital 4.69 6.40 The flight trials of ECIL developed Ku-band
Revenue 22.46 39.52 0.45M Airborne SATCOM Terminal (AST) for
AEW&C Program were successful.
Total 27.15 45.92
v. Testing of Ship-Borne Antenna System:
Total R&D expenditure 2.14% 3.34%
The 4.6M Ship-Borne Antenna System jointly
as a percentage of
designed and developed by ISRO, ECIL and
Net Turnover
BARC for Satellite Launch Program successfully
tracked PSLV-C38 launch vehicle in mid sea.

27 51st Annual Report 2017-18

vi. Acceptance test of 7.5m Data Reception System
(DRS) for Kautilya Mission:
The onsite acceptance test of 7.5m Data
Reception, Telemetry Tracking and Control
station was successfully completed as per
Kautilya mission requirements.
vii. Field Trials of EC-PoS:
The field trial of ECIL designed and developed
Point of Sale (EC-POS) device was successfully
completed at Department of Food & Civil
Supplies, Punjab.
E. New Products & Technologies
1. Dual channel Continuous Air Monitor (CAM)
The indigenously developed dual channel Alpha/
Beta CAM is intended to use in Nuclear Plants
for measuring releases of air particulate
radioactivity from the facility.
Dual channel CAM
This system provides audio/visual alarms on
exceeding set values. The real-time inputs
provided by the monitor help to verify the
integrity of the reactor containment system and
ensure early warning to workers, if the
containment is breached. The CAM can also be
used for monitoring particulate activity in
applications like stack monitoring.
51st Annual Report 2017-18
2. Check Out System for Astra Missile and
Launcher
This system developed in association with
Defence Research and Development Laboratory
(DRDL) is an automated facility designed and to
check on GO/NO GO basis, the health of ASTRA
Missile and its Launcher. It checks the missile
subsystems like On Board Computer (OBC),
Inertial Navigation System (INS), Data link
Receiver, Seeker, Radio Proximity Fuse (RPF),
Electro Mechanical actuators and Pyros. This
system also checks all signals related to Launch
processor and Data Link Transmission system.
The system has an in-built Simulator that
conforms the proper functioning of the facility
before connecting it to the missile.
Check Out System for Astra Missile and Launcher
The entire application software Check Out
System for Astra Missile and Launch is
developed in-house on Linux Operating System
and it is verified and validated. All the missile
parameters can be retrieved from the database
of the system anytime.
3. Electronic Warfare Software Components for
Tactical & Strategic Applications
This is a comprehensive software application for
tactical and strategic Defence and Para military
applications and can be used for both land and
air based Electronic Warfare systems.
This application has many components like
Planning, EW tasking, Analysis, Report
Management, Communication, ESM and GIS
Engine. It also consists a GIS based Electronic
warfare deployment and mission planning
system for tactical & strategic applications.
28

5.
EW Software Suite GIS component
These components are designed in a loosely
coupled manner so with a minimal change it can
be ready for Wide range of application.
4. Wide Band Digital Receiver System for
Electronic Warfare
The Wide-Band (WB) Digital Receiver (Search
Receiver) performs automatic interception of
signals in the frequency range of interest. Signal
interception is based on detection threshold set
either automatically or manually. The main
functions of a Wide-Band Digital Receiver are
signal detection, bandwidth (BW) estimation,
recording of time statistics of signal and multiple
ways of representation like frequency spectrum
and waterfall model on the display. It is based
on frequency domain processing of several
signals in a wider band using Fast Fourier
Transform (FFT) techniques in real time using
FPGA.
Wide Band Digital Receiver System for EW
29
The salient features of the systems include
30MHz to 3000MHz Frequency Band (V/UHF
bands) with Band width of 40MHz, Signal Power
threshold detection with programmable
threshold during frequency scan, Instantaneous
Frequency, Amplitude and Time waterfall
display, Panoramic view with spectrum zoom
facility for Frequency domain analysis and
Report Generation.
1.8m Tracking Antenna & Control System
Unmanned Aerial Vehicles(UAV) are increasingly
used as platforms for Intelligence, Surveillance,
Reconnaissance and disaster management, both
in military and civilian applications and to assist
in rescue mission management.
1.8m- TRACS SYSTEM
1.8m Tracking Antenna & Control System
(TRACS) is developed for Automatic Tracking of
UAVs to maintain continuous communication
between UAV and Trailer based Ground Data
Terminal (GDT). The system is designed for 0.1°
tracking accuracy at tracking rate of 5°/sec and
80 Kmph wind conditions.
The salient features of the system include Track
and Command UAVs up to 250 Kms LOS Range,
Tracking Pedestal with 15°/sec speeds, 10 °/s
Acceleration, 0.1° Tracking Accuracy and
51st Annual Report 2017-18

1.8m- TRACKING ANTENNA & CONTROL SYSTEM (TRACS)
operation for 80 Kmph, Embedded Antenna
Control Unit with Dual redundant Ethernet link
from Ground Control Station (GCS) and Low Bed
Trailer System with Acclimatised Enclosure for
RF & Servo LRUs.
6. Radiation Oncology Information System (ROIS)
The System deals with capturing the details of
Radiotherapy treatment given to a cancer
patient.
The details recorded in ROIS include Treatment
Planning, Appointments, Physics Calculations,
Treatment & Assessment details, Audit details
and Machine Transfer.
Radiation Oncology Information System
51st Annual Report 2017-18
7. X-RAY Baggage Inspection System (EC SCAN
6040)
ECSCAN 6040 is an indigenous X-Ray baggage
inspection system designed and developed in
association with BARC. It is designed for
screening hand baggage, suitcase, bags and
small parcel in Airport, Railway station, Metro
stations, Government offices, Banks, Hotels,
Malls and Restaurants. It uses multi energy
detectors coupled with scintillator to
discriminate object into organic, inorganic,
metal and high-density material with four
colours (Orange, Green, Blue and Black).
X-RAY Baggage Inspection System (EC SCAN 6040)
EC SCAN 6040 is a compact machine with tunnel
size of 640 X 430 mm. The conveyor load is 150
kg and speed is 20 cm/sec. It is having a 140 KV
X-ray generator to produce best quality of X-Ray
images with steel penetration of 28 mm and
wire resolution of 40 SWG. ECSCAN 6040
provides outstanding threat detection and
allows bidirectional scanning.
8. Secure Manufacturing Software for EVM and
VVPAT Production
ECIL has developed secure manufacturing
facility software which would address issues
such as unauthorized disclosure, destruction,
removal and modification of sensitive
information and physical assets during
manufacturing of strategic electronic
equipment.
30

Loading of SMT components
Manufacturing Status Sample screen
ECIL has put in place a secure manufacturing
facility for production of Electronic Voting
Machines (EVM) and Voter Verifiable Paper
Place: Hyderabad
Date: 24.09.2018
31
Audit Trial (VVPAT). The secure manufacturing
software provides security and also allows
traceability of the EVM and VVPAT units up to
component level, which would help in
preventing security breaches, theft, and misuse
of EVMs, VVPATs as well as disruption or denial
of services. All the stages and the activities are
monitored and logged using the secure
manufacturing software.
The software provides for Recording of SMT
components being loaded, tracking of PCBs,
Traceability up to components level, recording
of manufacturing information data relating to
the EVM & VVPAT units from PCB stage to the
final quality control, packing and shipment of
the units. The data recording includes the
activities carried out, operation status, unit/ sub-
unit ID and the stage at which operation has
been carried out, Operator ID, Date & Time of
operation Display of production status at each
stage of manufacturing and Generation of Alerts
in case of operational errors, time delays,
improper operating sequence. The secure
manufacturing software is successfully
implemented at the Election Equipment
Manufacturing Facility.
For and on behalf of the Board of Directors
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
51st Annual Report 2017-18
 Annexure – ‘B’
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
as on financial year ended on 31.03.2018
(Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Company
(Management & Administration) Rules, 2014.)

I. Registration & Other Details:

1. CIN U32100TG1967GOI001149
2. Registration Date 11.04.1967
3. Name of the Company Electronics Corporation of India Limited
4. Category/Sub-category of the Company Private Company limited by shares/
Government Company
5. Address of the Registered office & ECIL Post, Hyderabad – 500062, Telangana,
contact details Tel: 040-2712 1802
6. Whether listed company No
7. Name, Address & Contact details of the Registrar & N.A
Transfer Agent, if any.

II. Principal Business Activities of the Company

(contributing 10 % or more of the total turnover of the company)
S. Name and Description of NIC Code of the % to total turnover of the company
No. main products / services Product/service
1 Nuclear Equipment - Nuclear, Defence and Securities
Equipment and E-Governance Projects
2 Defence Equipment - consists more than 90% of the Turnover.
3 Security Equipment -
4. Aerospace Equipment -
5. e-Governance -

III. Particulars of Holding, Subsidiary and Associate Companies

S. Name and Address of CIN/GLN Holding/ Subsidiary/ % of shares Applicable
No. the Company Associate held Section
1 ECIL-Rapiscan U99999TG1995PLC019129 Associate 49% 2(6)
Limited

51st Annual Report 2017-18 32

 IV. Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity)
Category-wise Share Holding
Category of No. of Shares held at the beginning No. of Shares held at the end of the %
Shareholders of the year (as on 1st April, 2017) year (as on 31st March, 2018) Change
during
Demat Physical Total % of Demat Physical Total % of the
Total Total year
Shares Shares
A. Promoters
(1) Indian
a) Individual/ HUF 0 0 0 0 0 0 0 0 Nil
b) Central Government 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil
c) State Government(s) 0 0 0 0 0 0 0 0 Nil
d) Bodies Corporate 0 0 0 0 0 0 0 0 Nil
e) Banks / Financial Institutions 0 0 0 0 0 0 0 0 Nil
f) Any Other 0 0 0 0 0 0 0 0 Nil
Sub-Total: A (1) 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil

33
(2) Foreign
a) NRI-Individuals 0 0 0 0 0 0 0 0 Nil
b) Other Individuals 0 0 0 0 0 0 0 0 Nil
c) Bodies Corporate 0 0 0 0 0 0 0 0 Nil
d) Banks/Financial Institutions 0 0 0 0 0 0 0 0 Nil
e) Any Other 0 0 0 0 0 0 0 0 Nil
Sub-Total: A(2) 0 0 0 0 0 0 0 0 Nil
Total Shareholding of Promoter
(A) = A(1) +A(2) 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil
B. Public Shareholding
1. Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 Nil
b) Banks 0 0 0 0 0 0 0 0 Nil
c) Financial Institutions 0 0 0 0 0 0 0 0 Nil
d) Central Government 0 0 0 0 0 0 0 0 Nil
e) State Government(s) 0 0 0 0 0 0 0 0 Nil

51st Annual Report 2017-18

f) Venture Capital Funds 0 0 0 0 0 0 0 0 Nil
 Category of No. of Shares held at the beginning No. of Shares held at the end of the %
Shareholders of the year (as on 1st April, 2017) year (as on 31st March, 2018) Change
during
Demat Physical Total % of Demat Physical Total % of the
Total Total year
Shares Shares
g) Insurance Companies 0 0 0 0 0 0 0 0 Nil

51st Annual Report 2017-18

h) FIIs 0 0 0 0 0 0 0 0 Nil
i) Foreign Venture Capital Funds 0 0 0 0 0 0 0 0 Nil
j) Others (specify) 0 0 0 0 0 0 0 0 Nil
Sub-total (B)(1):- 0 0 0 0 0 0 0 0 Nil
2. Non-Institutions
a) Bodies Corporate
i) Indian 0 0 0 0 0 0 0 0 Nil
ii) Overseas 0 0 0 0 0 0 0 0 Nil
b) Individuals 0 0 0 0 0 0 0 0 Nil
i) Individual shareholders 0 0 0 0 0 0 0 0 Nil
holding nominal share capital

34
upto Rs. 1 lakh
ii) Individual shareholders 0 0 0 0 0 0 0 0 Nil
holding nominal share capital
in excess of Rs 1 lakh
c) Others (specify) 0 0 0 0 0 0 0 0 Nil
i) Non Resident Indians 0 0 0 0 0 0 0 0 Nil
ii) Overseas Corporate Bodies 0 0 0 0 0 0 0 0 Nil
iii) Foreign Nationals 0 0 0 0 0 0 0 0 Nil
iv) Clearing Members 0 0 0 0 0 0 0 0 Nil
v) Trusts 0 0 0 0 0 0 0 0 Nil
vi) Foreign Bodies - D R 0 0 0 0 0 0 0 0 Nil
Sub-total (B)(2):- 0 0 0 0 0 0 0 0 Nil
Total Public Shareholding
(B)=(B)(1)+ (B)(2) 0 0 0 0 0 0 0 0 Nil
C. Shares held by Custodian for 0 0 0 0 0 0 0 0 Nil
GDRs & ADRs
Grand Total (A+B+C) 0 16,33,712 16,33,712 100 0 16,33,712 16,33,712 100 Nil
 B) Shareholding of Promoter:
S. Shareholder’s Name Shareholding at the beginning Shareholding at the end % change in
No. of the year of the year share holding
during the year
No. of % of total % of Shares No. of % of total % of Shares
Shares Shares Pledged / Shares Shares Pledged /
of the encumbered of the encumbered
company to total shares company to total shares

1 President of India 16,33,709 99.97 NIL 16,33,709 99.97 Nil Nil

2 Secretary & Chairman, AEC,
Govt. of India, Department of 1 0.01 NIL 1 0.01 Nil Nil
Atomic Energy(DAE)
3 Jt. Secretary (I&M), Govt. of India, 1 0.01 Nil 1 0.01 Nil Nil
Department of Atomic Energy
4 Chairman & Managing 1 0.01 Nil 1 0.01 Nil Nil

35
Director, ECIL

C) Change in Promoters’ Shareholding (please specify, if there is no change) (There is no change in the promoter’s
shareholding during the year)
S. Particulars Shareholding at the Cumulative Shareholding
No. beginning of the year during the year
No. of % of total shares No. of % of total shares
shares of the company shares of the company
At the beginning of the year 16,33,712 100 16,33,712 100

Date wise Increase / Decrease in Promoters

Shareholding during the year specifying the reasons Nil -- Nil --
for increase / decrease (e.g. allotment /transfer /
bonus/ sweat equity etc.):

At the end of the year 16,33,712 100 16,33,712 100

51st Annual Report 2017-18

 D) Shareholding Pattern of top ten Shareholders:
(Other than Directors, Promoters and Holders of GDRs and ADRs):
S. For Each of the Top 10 Shareholding at the Cumulative Shareholding
No. Shareholders beginning of the year during the year
No. of % of total shares No. of % of total shares
shares of the company shares of the company

51st Annual Report 2017-18

At the beginning of the year Nil Nil Nil Nil

Date wise Increase / Decrease in Promoters

Shareholding during the year specifying the reasons Nil Nil Nil Nil
for increase /decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
At the end of the year Nil Nil Nil Nil

36
E) Shareholding of Directors and Key Managerial Personnel:
S. Shareholding of each Directors and Shareholding at the Cumulative Shareholding
No. each Key Managerial Personnel beginning of the year during the year
No. of % of total shares No. of % of total shares
shares of the company shares of the company
At the beginning of the year
1. Chairman & Managing Director, ECIL 1 0.01 1 0.01
Date wise Increase / Decrease in Promoters
Shareholding during the year specifying the reasons Nil Nil Nil Nil
for increase /decrease (e.g. allotment / transfer /
bonus/ sweat equity etc.):
At the end of the year
1. Chairman & Managing Director, ECIL 1 0.01 1 0.01
V. INDEBTEDNESS -Indebtedness of the Company including interest outstanding/accrued but
not due for payment.
Secured Loans Unsecured Depo- Total
excluding deposits Loans sits Indebtedness
Indebtedness at the beginning
of the financial year
i) Principal Amount Rs. 208,34,59,936.63 Rs. 75,00,00,000 - Rs. 283,34,59,936.63
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii) Rs. 208,34,59,936.63 Rs. 75,00,00,000 - Rs. 283,34,59,936.63
Change in Indebtedness during
the financial year
* Addition 0.00 Rs. 550,00,00,000.00 Rs. 550,00,00,000.00
* Reduction Rs. 208,34,59,936.63 Rs. 625,00,00,000.00 Rs. 833,34,59,936.63
Net Change (-) Rs. 208,34,59,936.63 (-) Rs. 75,00,00,000.00 (-) Rs. 283,34,59,936.63
Indebtedness at the end of the
financial year
i) Principal Amount 0.00 0.00 0.00
ii) Interest due but not paid
iii) Interest accrued but not due 0.00
Total (i+ii+iii) 0.00 0.00

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
S. Particulars of Remuneration Name of MD/WTD/ Manager Total Amount
No.
Shri Debashis Das, Shri Kishor Shri VSB Babu,
Chairman & Rungta, Director (P)
Managing Director (F)
Director*
1 Gross salary Rs. Nil Rs. 28,85,391 Rs. 28,84,472 Rs. 57,69,863
(a) Salary as per provisions contained in Rs. 28,85,391 Rs. 28,84,472 Rs. 57,69,863
section 17(1) of the Income-tax Act,1961
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 Nil Nil Nil
(c) Profits in lieu of salary under
section 17(3) Income- tax Act, 1961 Nil Nil Nil
2 Stock Option Nil Nil Nil
3 Sweat Equity Nil Nil Nil
4 Commission
- as % of profit
- others, specify Nil Nil Nil
5 Others, please specify (EL encashment Rs. 8,37,723 Rs.5,28,408 Rs.13,66,131
& Company Contribution to PF)
Total (A) Rs. 37,23,114 Rs. 34,12,880 Rs. 71,35,994
Ceiling as per the Act N.A N.A N.A N.A
* Shri Debashis Das, DS, Chairman & Managing Director is acting on additional charge and is drawing remuneration from his parent organisation.

37 51st Annual Report 2017-18

B. Remuneration to other Directors
S.No. Particulars of Remuneration Name of Directors Total Amount
1 Independent Directors
Fee for attending board / committee meetings Nil Nil
Commission Nil Nil
Others, please specify Nil Nil
Total (1) Nil Nil
2 Other Non-Executive Directors
Fee for attending board / committee meetings Nil Nil
Commission Nil Nil
Others, please specify Nil Nil
Total (2) Nil Nil
Total (B)=(1+2) Nil Nil
Total Managerial Remuneration (A+B) Rs. 71,35,994
Overall Ceiling as per the Act N.A. N.A.

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

S. Particulars of Remuneration Key Managerial Personnel
No.
CEO Company Secretary CFO Total
Jai Bhagwan Ashish Kumar MSRS
Sharma Srivastava Prasad
(upto (02.11.2017 to (From
18.08.2017) 28.02.2018) 01.03.2018)
1 Gross salary Nil Rs. 5,05,543 Rs. 2,63,945 Rs.96,035 Nil Rs. 8,65,523
(a) Salary as per provisions
contained in section 17(1) of the
Income-tax Act, 1961 Nil Nil Nil Nil Nil Nil
(b) Value of perquisites u/s 17(2)
Income-tax Act, 1961 Nil Nil Nil Nil Nil Nil
(c) Profits in lieu of salary under
section 17(3) Income-tax Act, 1961 Nil Nil Nil Nil Nil Nil
2 Stock Option Nil Nil Nil Nil Nil Nil
3 Sweat Equity Nil Nil Nil Nil Nil Nil
4 Commission Nil Nil Nil Nil Nil Nil
- as % of profit Nil Nil Nil Nil Nil Nil
others, specify (PF) Nil Rs.47,052 Rs.24,557 Rs.8,958 Nil Rs.80,567
5 Others, please specify Nil Nil Nil Nil Nil Nil
Total Nil Rs.5,52,595 Rs.2,88,502 Rs.1,04,993 Nil Rs.9,46,090

51st Annual Report 2017-18 38

VII. Penalties / Punishment/ Compounding of Offences:
Type Section Brief Details of Penalty / Authority Appeal made,
of the Description Punishment/ [RD / NCLT/ if any
Companies Compounding COURT] (give Details)
Act fees imposed
A. COMPANY
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
B. DIRECTORS
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil
C. OTHER OFFICERS
IN DEFAULT
Penalty Nil Nil Nil Nil Nil
Punishment Nil Nil Nil Nil Nil
Compounding Nil Nil Nil Nil Nil

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 24.09.2018 Chairman & Managing Director

39 51st Annual Report 2017-18

 ANNEXURE - ‘C’
CORPORATE GOVERNANCE REPORT
Corporate Governance
The Company continues its best efforts in enhancing
the openness and transparency in all its operations.
The Company’s business philosophy recognizes the
need of upholding the highest standard of Corporate
Governance in its operations. The management of
the Company believes that strong and sound
Corporate Governance practices would enable it to
face the challenges of sustainable growth effectively
and successfully.
Board of Directors
In terms of Sec 2(45) of the Companies Act, 2013,
ECIL is a Government Company. The entire paid up
capital of the Company is held by the President of
India, including the 3 shares held by his nominees.
The Board, as at 31.03.2018, comprises Six Directors-
three Whole-time Functional Directors and
three Part time Non-Executive Directors. The Board
meets at regular intervals and is responsible
for the proper direction and management of the
Company.
During the financial year, Six Board Meetings were
held on 06.05.2017, 24.08.2017, 28.09.2017,
21.12.2017, 17.01.2018 and 19.03.2018. The
composition of the Directors, their attendance at the
Board Meetings during the financial year and at the
last Annual General Meeting is as follows:

Sl. Board Meetings Attendance No. of other

No. Directors At last Director-
Held during Attended AGM held on ships
the tenure 28.09.2017
Whole-Time Functional Directors
1 Shri Debashis Das, DS
Chairman & Managing Director 6 6 Yes 1
2 Shri Kishor Rungta, Director (Finance) 6 6 Yes 1
3 Shri V S B Babu, Director (Personnel) 6 6 Yes Nil
Part time Non-Executive Directors
4 Shri R A Rajeev (Upto 12.04.2017) 0 0 - 4
5 Shri Sanjeev Sood (Upto 09.05.2017) 1 1 - 2
6 Shri M A Inbarasu (From 22.06.2017) 5 5 Yes 4
7 Shri M Bharath Kumar 6 5 Yes Nil
8 Lt. Gen. Ashish Ranjan Prasad, AVSM, VSM, ADC 6 1 No 1

The remuneration of the Whole-time Functional Board Procedures

Directors is fixed by the Government of India. All
other part-time non-executive Directors on the Board
are officials from the Government / other CPSEs and,
therefore, are not paid any remuneration and sitting
fees for the meetings attended. The memberships
or chairmanships of the committees of the Directors
across all the companies in which he is a Director is
within the limit of ten committees for memberships
and five committees for chairmanship as specified
under the DPE guidelines on Corporate Governance.
The Agenda along with notes is circulated well in
advance to the Board members. The items in the
Agenda are backed by comprehensive background
information to enable the Board to take appropriate
decisions. The Board has been kept informed of major
events/items and approvals taken wherever
necessary. Chairman & Managing Director/ Director
(F), at the Board Meetings, keep the Board apprised
of the overall performance of the Company.

51st Annual Report 2017-18 40

Code of Conduct Sl. Name of Director No. of
No. meetings
The Board of Directors of your Company has laid attended
down a Code of Conduct for all Board Members and
1. Shri M. Bharath Kumar, Chairman 3
Senior Management of the Company. The Code of
Conduct has been posted on the Company’s website 2. Shri Kishor Rungta,
www.ecil.co.in. All the Board members and the Director (Finance), Member 3
Senior Management personnel have affirmed 3. Shri V S B Babu,
compliance with the Code of Conduct during the year Director (Personnel), Member 3
2017-18.
The specific areas identified by the company through
The following are the Sub-Committees of the its approved CSR policy to take up the projects/
Board: programmes are in line with Schedule VII of the
1. Audit Committee Companies Act, 2013 and the DPE guidelines.
2. Corporate Social Responsibility Committee Remuneration Committee
3. Remuneration Committee The Board has constituted Remuneration Committee
4. Contract Negotiation Committee and the terms of reference of the committee are in
line with the DPE guidelines. All the committee
Audit Committee members are part-time Directors. During the year no
Audit Committee consists of part-time directors as meetings were held.
its members. All the members of the committee are
experienced professionals and have rich knowledge Details of remuneration paid to the Chairman &
of financial matters of the Company including Managing Director and other Directors are given
accounts and corporate law. The Statutory Auditors below:
have been the special invitees for all the meetings. Sl. Name of Director All elements of
The Head of the Internal Audit Department is also No. remuneration of
invited for participation in discussions. Directors (In Rs.)

During the year, no meetings of the Audit Committee 1. Shri Debashis Das,
Chairman & Nil*
were held as the committee requires re-constitution
Managing Director
after appointment of Independent Directors by the
Government of India. 2. Shri Kishor Rungta, 37,23,114/-
Director (Finance)
The terms of reference of the Audit Committee are
3. Shri V S B Babu, 34,12,880/-
in line with Section 177 of the Companies Act, 2013 Director (Personnel)
and DPE Guidelines.
* Shri Debashis Das is serving as Chairman & Managing
Corporate Social Responsibility Committee Director of your Company on additional charge basis and is
drawing remuneration from his parent organization.
The Board has constituted Corporate Social
Responsibility Committee and the committee met Contract Negotiation Committee
three times during the financial year on 25.07.2017, This committee is headed by Chairman & Managing
21.12.2017 & 19.03.2018. The composition of the Director and provided with the authority to negotiate
committee and the attendance of the members of and approve the contracts and purchases for the
the committee is given below: company, which are above the delegated powers to
Chairman & Managing Director but upto a limit of
Rs.150 Crore. Presently, the composition of the
committee is:

41 51st Annual Report 2017-18

1. Rear Admiral Sanjay Chaubey (Retd.) Chairman
C&MD
2. Shri M Bharath Kumar Member
3. Shri Kishor Rungta, Director (Finance) Member
The committee meets regularly based on the
requirements of the business.
Corporate Management Committee
The Corporate Management Committee is a high
level policy making body at the Corporate level which
is headed by the Chairman & Managing Director. The
Committee consists of all Functional Directors,
Executive Directors, General Managers and Heads of
Divisions as members. The Committee meets
regularly and deliberates upon the major policy issues
including performance of the Company. The
President and General Secretary of ECIL Workers
Union and President and Secretary of ECIL Officers
Association are the special invitees.
Familiarisation & Training Programmes of
Directors
At the time of induction of a new Director, a welcome
letter is addressed to him along with details of
business profile of the Company. Relevant Disclosures
are taken from the Director. The Board of Directors
consists of CMD, Functional Directors and part-time
Directors from DAE, BARC, Defence and other
Government organizations/Departments or other
CPSEs. The Directors are having requisite knowledge
relating to functioning of the Company. The
management of the Company familiarizes the new
Director about the Company, its operations, various
policies and processes of the Company, various
divisions and their role and responsibilities, the
governance and internal control processes and other
relevant important information concerning the
Company.
Directors are also regularly encouraged and
sponsored for attending important training
programmes relating to Board related practices and
orientation programmes etc., conducted by various
institutes of repute.
Disclosures:
1. During the year, there is no transaction of
material nature with the Directors or their
51st Annual Report 2017-18
relatives or the Management that had potential
conflict with the interest of the Company.
2. A statement of related party transactions during
the year is given in Notes forming part of Annual
Accounts of the Company for the year 2017-18.
Details of these transactions were also placed
before the Board meetings.
3. There were no instances on non-compliance on
any matter related to any guidelines issued by
the Government during the last three years and
no penalties / strictures were imposed on the
Company by any Statutory Authority on any
matter.
4. ECIL has framed Risk Management Policy in
accordance with the Guidelines on Corporate
Governance and risk management is a part of
its management system based on safety
conscious approach.
5. The Company being PSU, Central Vigilance
Commission Guidelines are applicable, which
provide adequate safeguard against
victimization of employees. No person has been
denied access to the Audit Committee.
6. No items of expenditure, other than those
directly related to its business or incidental
thereto, those spent towards the welfare of its
employees / ex-employees, towards fulfilling its
Corporate Social Responsibility, were debited in
books of accounts.
7. Expenses incurred for the Board of Directors and
Top Management are in the nature of salaries,
allowances, perquisites, benefits and sitting fees
as permissible under the rules of the Company.
No other expenses, which are personal in
nature, were incurred for the Board of Directors
and Top Management.
8. Administrative and office expenses for the
financial year 2017-18 is 3.53% of the total
expenses as compared to 3.21% of previous year.
Presidential Directives and Guidelines
The Company has been following the Presidential
Directives and guidelines issued by the Govt. of India
from time to time regarding reservation for SCs, STs
42
and OBCs in letter and spirit. Officials dealing with
the subject were provided necessary training to
enable them to update their knowledge on the
subject and perform their job effectively.
ECIL has implemented Pay Revision for the Board
Level and below Board Level Executives effective
from 1st January, 2017 as approved by the Board of
Directors on receipt of presidential directive.
Means of Communications
Postal Ballot
At the ensuing Annual General Meeting, there is no
resolution which is proposed to be passed by Postal
Ballot.
Annual General Meeting
51st Annual General Meeting for the financial year
2017-18 will be held on 24th September, 2018 at
Registered Office of the Company at Hyderabad.

1. The Company displays on its website at Whistle Blower policy

www.ecil.co.in the information on the With a view to establish a mechanism for the
Company, its performance and other relevant employees to report to the Management about their
information including those required under the concerns regarding unethical behavior and the cases
Right to Information Act. of actual or suspected fraud, violation of Company’s
2. Matters of interest to employees are circulated general guidelines on Conduct and Ethics, the
internally in the form of notices, office orders Company implemented the Whistle Blower Policy.
and instructions. The Policy ensures that adequate safeguards are
provided to the genuine Whistle Blower against
General Shareholder Information victimization.
ECIL is not listed at any Stock Exchange in India or
Compliance
abroad. The entire share capital of the Company is
held by the President of India and his nominees. The Company has complied with the Guidelines on
Corporate Governance for CPSEs issued by the
General Body Meetings Department of Public Enterprises, Government of
The details of the last three Annual General Meeting India. The Company is also submitting quarterly
of the Company are given below: compliance report regularly to the Department of
Atomic Energy, Government of India. The certificate
Year Date Time Venue
received from the Company Secretary in Practice on
2014-15 16.09.2015 15.00 hours Registered Office, compliance with the DPE Guidelines is enclosed with
2015-16 17.09.2016 09.30 hours ECIL Post office, this report.
2016-17 28.09.2017 14.30 hours Hyderabad-500062
The DPE guidelines on Corporate Governance for
No special resolution was passed in any of the last CPSEs provide that the CPSEs would be graded on
three Annual General meetings. the basis of their compliance with the guidelines. DPE
has graded ECIL as “Good” for the year 2017-18.

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 24.09.2018 Chairman & Managing Director

43 51st Annual Report 2017-18

 Annexure - ‘D’

51st Annual Report 2017-18 44

 Annexure - ‘G’
Annual Report on CSR Activities for the year 2017-18
S.No. Item description
1 A brief outline of the Company’s CSR policy,
including overview of projects or programs
proposed to be undertaken and a reference
to the web-link to the CSR policy and projects
or programs.
2 The Composition of the CSR Committee.
3 Average net profit of the Company for last
three financial years
4 Prescribed CSR Expenditure (two percent of
the amount as in item 3 above)
45
Information
ECIL is committed towards holistic welfare of the
Society by undertaking CSR activities within the ambit
of Schedule-VII of the Companies Act 2013,
Companies (CSR Policy) Rules 2014 and the Guidelines
on CSR issued by DPE, Govt. of India. Out of the thrust
areas mentioned in the Schedule-VII of the Companies
Act 2013, priority will be given to under privileged,
neglected and weaker Section of the Society.
The Company shall give preference to the local areas
for spending at least 75% of the amount earmarked
for CSR activities. The remaining amount will be
utilized beyond local areas. At least 75% of the new
proposals shall be taken up in Project mode. The
provisions of the Companies Act, 2013 and CSR Rules
made thereafter (including DPE guidelines, as and
when issued, on CSR) shall have overriding effect vis-
à-vis the provisions of this Policy.
The First Level Committee on CSR shall ensure
monitoring, co-ordination and supervision of all the
Projects/activities of CSR during its implementation.
Company’s CSR policy has been uploaded in the
website of the Company under the following weblink:
www.ecil.co.in/CSR_Policy.pdf
Shri M Bharath Kumar, Director Chairman
Shri Kishor Rungta, Director (F) Member
Shri VSB Babu, Director (P) Member
Rs.7,678.15 Lakhs
Rs.153.56 Lakhs
51st Annual Report 2017-18
 S.No. Item description
5 Details of CSR spent during the financial year:
a) Total amount spent for the financial year
b) Amount unspent, if any
c) Manner in which the amount spent during
the financial year detailed below
6 In case the Company has failed to spend the
two percent of the average net profit of the
last three financial years or any part thereof,
the Company shall provide the reasons for not
spending the amount in its Board report.
7 A responsibility statement of the CSR
Committee that the implementation and
monitoring of CSR policy, is in compliance
with CSR objectives and Policy of the
Company.
Sd/-
Chairman, CSR Committee
Place: Hyderabad
Date: 24.09.2018
51st Annual Report 2017-18
Information
Rs.139.02 Lakhs
Rs.14.54 Lakhs
As detailed in the Annexure
The Company has spent nearly 90.53% of allocated
amount during the year. However, the remaining
amount to the extent of 9.47% could not be spent
due to longer gestation of projects involving activities
like construction of toilets and other civil works, etc.
The CSR Committee has been taking proper care in
implementation and monitoring of CSR activities, is
in compliance with CSR objectives and Policy of the
Company.
Sd/-
Director (Finance)
For and on behalf of the Board of Directors
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
46
 Details of CSR Activities in Financial Year 2017-18 Annexure

(1) (2) (3) (4) (5) (6) (7) (8)

Project CSR Project or activity Sector in which Projects programs Amount Amount spent on Cumulative Amount spent :
No. identified the project is (1) Local area or Other outlay the projects or expenditure Direct or
covered (2) Specify the State and (budget) programs up to the through
District where projects or Project or Sub-Heads: reporting implementation
programs was undertaken program 1) Direct period, agency
wise expenditure i.e.,upto
(Rs.) on projects or 31.3.2018
programs. (Rs.)
2) Overhead (Rs.)

42 Construction of Toilets at Education Local area– MPPS, Ashok Nagar, 50,000 Direct: 49,720 49,720 Direct
MPPS, Ashok Nagar, Kapra Mandal in Medchal Dist, (by ECIL)
Kapra Mandal, Medchal Dist, Telangana State
Telangana State

52 Construction of additional -do- Local area– Kamala Nagar, 75,000 Direct: 77,530 77,530 -do-
Class Room at MPUPS, Kapra Mandal in Medchal Dist,
Kamala Nagar, Kapra Mandal Telangana State
in Medchal Dist

47
53 Providing Desks/ Benches to -do- Local area – Kapra, Keesara, 10,00,000 Direct: 9,37,500 9,37,500 -do-
the students in Govt. Schools Alwal Mandals in
at Kapra, Keesara and Medchal Dist, Telangana State
Alwal Mandal in Medchal Dist.

68 Distribution of School Bags & -do- Local area – Government Schools 15,00,000 Direct: 15,39,000 15,39,000 -do-
Water Bottles to the students at Keesara, Kapra,
in Govt. Schools at Alwal Mandals in
Malkajgiri, Alwal Mandals, Medchal Dist, Telangana State
Medchal Dist.

69 Providing Desks/ Benches -do- Local area – Keesara, Alwal, 10,00,000 Direct: 9,98,000 9,98,000 -do-
to the students in Kapra, Mandals in Medchal Dist,
Govt. Schools at Kapra & Telangana State
Keesara Mandal in
Medchal Dist.

70 Construction of Toilets at -do- Local area– ZPHS, Jawahar Nagar, 14,00,000 Direct: 13,81,949 13,81,949 -do-
ZPHS Jawahar Nagar in Kapra Mandal in Medchal Dist,
Medchal Dist, Telangana State Telangana State

Total C/F 50,25,000 49,83,699 49,83,699

51st Annual Report 2017-18

 (1) (2) (3) (4) (5) (6) (7) (8)

Total B/F 50,25,000 49,83,699 49,83,699

71 Construction of Toilets at Education Local area – at ZPHS, Yapral, 10,50,000 Direct: 10,46,494 10,46,494 Direct
ZPHS (Girls) at Edulabad in Kapra Mandal in Medchal Dist, (by ECIL)
Medchal Dist, Telangana State
Telangana State

51st Annual Report 2017-18

72 Construction of Toilets at -do- Local area – ZPHS, Edulabad at 5,00,000 Direct: 5,04,743 5,04,743 -do-
ZPHS Yapral in Medchal Dist, Ghatkesar Mandal in
Telangana State Medchal Dist, Telangana State

73 Construction of Toilets at -do- Local area – Boys Hostel at 6,50,000 Direct: 3,00,000 3,00,000 -do-
SC/ST’s Boys Hostel at Renigunta Mandal in Tirupathi,
Renigunta Mandal Chittoor Dist in AP State
Chittoor District in AP State

74 Construction of Compound -do- Local area – Panchali Nagar, 5,50,000 Direct: 3,00,000 3,00,000 -do-
Wall at MPPS, Panchali Nagar, Renigunta Mandal in Tirupathi,
Renigunta, Tirupathi Chittoor Dist in AP State

75 Conducting Health Camp at Health Local area – Conducting health

ZPHS, Nagawaram, Camp at ZPHS, Nagawaram,

48
Keesara Mandal, Dist, Keesara Mandal Dist, Telangana 1,00,000 Direct:76,804 76,804 -do-
Telangana State

76 Providing Archery items to Sports Local area – ZPHS, Rampally, 2,00,000 Direct:1,78,950 1,78,950 -do-
the students at ZPHS, Keesara Mandal, Medchal Dist
Rampally in Keesara Mandal
in Medchal Dist

77 Providing Computer Skill Local area - Govt. Schools in 20,00,000 Direct:18,77,633 18,77,633 -do-
education in 35 Govt. Schools Development Kapra, Keesara, Malkajgiri,
in Kapra, Keesara, Alwali & Ghatkesar Mandals,
Malkajgiri & Ghatkesar Medchal Dist in Telangana State
Mandals, Medchal Dist,
Telangana State

78 Installation of Napkin Health Local area – Kapra, Nagawaram, 1,00,000 Direct: 89,960 89,960 -do-
Burning Machines at Dammaiguda, Kushaiguda at
Girls Toilet at ZPHS, Kapra, Kapra Mandal in Medchal Dist ,
Kushaiguda, Nagawaram, Telangana State
Dammaiguda

Total C/F 1,01,75,000 93,58,283 93,58,283

 (1) (2) (3) (4) (5) (6) (7) (8)

Total B/F 1,01,75,000 93,58,283 93,58,283

79 Providing Tele-ECG Machines Health Local Area – Govt./ESI Hospitals 25,00,000 Direct: 23,44,134 23,44,134 Direct
to Govt./ESI Hospitals in in Telangana & AP States (by ECIL)
Telangana State

81 Construction of Toilets at Education Local area – ZPHS (Co-education), 7,00,000 Direct: 6,92,431 6,92,431 -do-
ZPHS (Co-education) at Edulabad, Ghatkesar Mandal
Edulabad in Medchal Dist, in Medchal Dist, Telangana State
Telangana State

86 Conducting Health Camp at Health Local area– Conducting 2,00,000 Direct:1,85,597 1,85,597 -do-
ZPHS, Kapra Mandal, health Camp at ZPHS, Kapra,
Keesara Dist, Telangana State Medchal Dist, Telangana State

87 Construction of Rainwater Environmental Local Area – in and around 10,00,000 Direct: 7,75,545 7,75,545 -do-
Harvesting Pits in and ECIL, Kapra, Kushaiguda at
around ECIL & in Kapra Kapra Mandal in Medchal Dist,
Telangana State

49
88 Providing Toys etc, to Education Local Area - Renigunta Mandal in 1,00,000 Direct: 39,257 39,257 -do-
Disabled Children at Tirupathi, Chittoor Dist in
Bhavitha Centre, AP State
Renigunta Mandal, Tirupathi,
Chittoor District

89 Contribution to Kabaddi Sports National cause – 25,000 Direct: 25,000 25,000 -do-
Tournament at DAE, Mumbai DAE Sports Meet, Mumbai

91 Contribution to Indian Donations National Cause – 1,25,000 Direct: 1,25,000 1,25,000 -do-
Navy Benevolent Fund, Ministry of Defence,
Ministry of Defence, Govt. of India
Govt. of India

92 Contribution to Armed Forces Donations National cause – 1,00,000 Direct: 1,00,000 1,00,000 -do-
Flag Fund,Ministry of Ministry of Defence,
Defence, Govt. of India Govt. of India

Total C/F 1,49,25,000 1,36,45,247 1,36,45,247

51st Annual Report 2017-18

 (1) (2) (3) (4) (5) (6) (7) (8)

Total B/F 1,49,25,000 1,36,45,247 1,36,45,247

94 Contribution to Health National cause – 1,00,000 Direct: 1,00,000 1,00,000 Direct

Health Minister’s Ministry of Health, (By ECIL)
Cancer Fund, Govt. of India
Ministry of Health,

51st Annual Report 2017-18

Govt. of India

21, Miscellaneous works, Education Local area – Nagawaram, 50,000 Direct: 45,365 45,365 -do-
23, in connection with repair Chinna Cherlapally, Ahmedguda,
35 works at Toilets Moula-ali in Medchal Dist,
at MPPS, Nagawaram, MPPS, Telangana State
Chinna Cherlapally, MPPS,
Ahmedguda &
Govt. High School, Moulali,
in Medchal Dist,
Telangana State

28 Communication Strategy/ CSR Administrative & other 1,00,000 Overheads: 1,11,138 -do-
Overheads on CSR Communication Overheads on CSR 1,11,138

50
strategy

Total 1,51,75,000 1,39,01,750 1,39,01,750

For and on behalf of the Board of Directors

Place: Hyderabad Rear Admiral Sanjay Chaubey (Retd.)

Date: 24.09.2018 Chairman & Managing Director
 ANNEXURE - ‘H’
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure and Developments
India’s growth story has remained largely positive
with the impact of demonetisation settling down and
the businesses adjusted to the Goods and Services
Tax. The Manufacturing sector emerged as one of the
high growth sectors in India. With the Government
launching Make in India to place India in the world
map as a manufacturing hub and has also given global
recognition to the Indian economy. India is expected
to be the fifth largest manufacturing hub by 2020.
The Company has taken strong initiatives to truncate
the dependencies with the foreign suppliers and
expects to create valued products while fostering
innovation and exploiting strong linkages with the
leading R&D institutions.
SWOT Analysis
Strengths
• Large capacity for state-of-the-art Electronic
Manufacturing and Testing Facility
• Vibrant and sustainable ecosystem for in-house
R&D
• Diverse talent pool
• Long and rich experience in high technology
solutions and products
• Tie-ups with leading R&D and academic
institutions
• Strong Product Life Cycle Management
• Ability and experience to handle large and
complex projects
• Established Customer Service Network
Weaknesses
• Poor realization of Sundry Debts
• Lack of proactive marketing and business
development
• Overdependence on selective markets
51
• Inability to participate in large Tenders
• Procurement Procedural constraints
• Long product development cycle
Opportunities
• Major Space Programs
• Strategic Defence programs
• Nuclear Power plant upgrades and upcoming
Nuclear reactors
• Electronic Fuze requirements from Indian
Artillery
• Radiation Detection Systems at various vital
locations
• Increasing Security Sector Market
• Various e-Governance programs
Threats
• High rate of Technology Change
• Operational Policy Changes
• Manpower poaching by the competitors
• Non-level playing field in Defence sector
Outlook for 2018-19
The Company is confident of meeting its target
of Rs.1800 Crore for the financial year 2018-19
with the healthy orders book position. The
major opportunities being Electronic Voting
Machines and VVPATs, Electronic Fuzes, Strategic
Communication Networks, Control and
Instrumentation Systems and Security Systems. The
Company has already geared up its manufacturing
infrastructure to meet the forthcoming challenges
and is confident of meeting the requirement as per
schedule.
The Defence programs provide huge opportunity for
the Company and the Company is aligning with a
need to increase the indigenous content of the
51st Annual Report 2017-18
products under Make in India initiatives promoted
by the Government. The C&I requirement for the
upcoming Nuclear Reactors and ongoing up-
gradations gives a positive outlook to the Nuclear
Sector. There will be substantial increment in the
contribution from e-Governance sector owing to the
orders under execution from Election Commission of
India.
Segment-wise Performance
Nuclear
Control and Instrumentation Systems, Radiation
Monitoring Instruments and Systems, Operator
Training Simulators of Nuclear Power Plants and
Facilities are the major constituents of the Nuclear
business of the Company. During the year 2017-18,
this segment posted a turnover of Rs.254 Crore
contributing to 20% of net turnover.
The major supplies during the year in this segment
are Nuclear Instrumentation Package, Nuclear Power
Plant upgrades and various Control &
Instrumentation Systems.
Defence
Universal Electronic Fuzes for Artillery, Military
Radios, C 4 I systems for Missile Systems,
Communication Intelligent Systems and various
Strategic projects of Defence constituted the major
Defence business of your Company. During the year
2017-18, the sector contributed 36% of the
Company’s net turnover, amounting to Rs. 456 Crore
with major contribution coming from Electronic Fuzes
for Indian artillery, military radios, Strategic
Communication networks and other Strategic
projects of National importance.
The continued demand of Electronic Fuzes for Indian
Artillery and legacy military radios promises a
consistent business in the near future. The enhanced
infrastructure and the established competence have
positioned the Company favorably to handle large
projects with ease. This segment is likely to increase
its share of business in the coming period.
51st Annual Report 2017-18
Aerospace
Antenna Systems, Electro-mechanical sub systems
like Gyros, Synchros and Actuators are the major
products of your Company catering to Aerospace
segment. In the year gone-by, the Company has
successfully installed various types of antennas for
National Space Programs initiated by ISRO. In the year
2017-18, the sector contributed 8% of the Company’s
net turnover, amounting to Rs.108 Crore this year.
The outlook of this segment predicts an increasing
order book position as supply of numerous Sat Com
terminals and Antennae for various Space Programs
are in the offing and would provide a sturdy ground
to the overall performance of the sector.
Security
The Company has continued to deliver the legacy
security solutions which includes Access Control
Systems and integrated security solutions. The
technology tie-ups have enabled the Company to
provide variety of Jamming solutions to various State
prisons and Police Departments. The business in this
sector contributed Rs.207 Crore constituting about
16% of the Company’s net turnover. The outlook of
this segment is positive with numerous opportunities
emerging in providing Security Solutions to vital and
Strategic installations.
E-Governance
Electronic Voting Machines, Voter Verifiable
Paper Audit Trail equipment, BSNL exchange
upgrades to MAX-NG were the major products of
your Company in e-Governance segment. The IT
training provided to various state departments and
digitization of Sales tax Departments are also
contributed to this sector.
The e-Governance segment contributed Rs.222 Crore
contributing 17% of the Company’s turnover in 2017-
18 with sale of VVPATs having the major share. The
Company completed the digitization of BSNL
exchanges and imparted IT Training in various State
Government Departments.
52
The Company is currently engaged fulfilling
the mammoth requirement of EVMs and VVPATs
for the forthcoming General Elections. The
Company has upgraded its infrastructure
and manpower deployment to achieve its
production capacity to timely execute the ECI
requirements.
Risks & Concerns
The Government and its agencies are the exclusive
customers for Nuclear, Defence, Aerospace, Security
and e-Governance segments. The projects are
subjected to unexpected delays due to long
procurement cycle and customer clearances. While
executing large and complex projects where multiple
agencies are involved there is an inherent risk due to
increasing interdependencies and uncertainties
which eventually leads to delay in release of
payments from the customers. The large overheads
become a limiting factor to get a favorable position
in a competitive bidding.
Place: Hyderabad
Date: 24.09.2018
53
Internal Control Systems and their Adequacy
Your Company has a robust system of internal
controls in place which are commensurate with the
size and nature of the business. The internal controls
are in line with the statutory requirements and are
designed to safeguard the assets against loss from
unauthorized use or disposal and ensure recording
and reporting of all transactions. The control
framework includes documented policies and
procedures, internal audits and management review.
The internal controls are designed to ensure that all
records, financial or otherwise, are reliable for
preparing financial information and accountability of
assets. Apart from the monitoring mechanisms
instituted internally, an audit firm has also been
appointed to conduct internal audit of the Company’s
operations as per the audit plan approved by the
Audit Committee. The areas covered by the annual
audit plan include material procurement, inventory
management, operations review and contract
management.
For and on behalf of the Board of Directors
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
51st Annual Report 2017-18
 Parliamentary Committee members taking keen interest in ECIL products

Former Program Director of ATVP Vice Admiral A K Bahl flagging off the Consignment to Site

51st Annual Report 2017-18 54

 Dr. Arun Kumar Bhaduri, Technology Development Council, Chairman and Director, IGCAR
releasing R&D Report

Former Chief Election Commissioner of India Dr. Nassim Zaidi appreciating ECIL’s new manufacturing
facility for EVM and VVPAT

55 51st Annual Report 2017-18

 Electronics Corporation of India Limited
Balance Sheet as at March 31, 2018 (Rs. in lakhs)
Particulars Note Figures as at the end of Figures as at the end of
No Current Reporting Period Previous Reporting Period
March 31, 2018 March 31, 2017
ASSETS
1. Non-current assets
(a) Property, Plant and Equipment 2 15,479.93 12,344.76
(b) Capital work-in-progress 3 1,956.35 2,055.47
(c) Investment Property 4 109.94 112.83
(d) Other intangible assets 5 27.70 -
(e) Intangible Assets Under Development 6 - 926.75
(f) Financial Assets
(i) Investments 7 3,821.26 3,762.55
(ii) Trade Receivables 8 4,622.98 5,710.66
(iii) Loans 9 - -
(iv) Other Financial Assets 10 13,517.37 15,864.66
(g) Deferred tax Assets (Net) 11 5,627.57 7,416.66
(h) Other non-current Assets 12 1,477.34 238.20
Total Non Current Assets 46,640.44 48,432.54
2. Current Assets
(a) Inventories 13 58,117.40 28,161.76
(b) Financial Assets
(i) Investments - -
(ii) Trade Receivables 14 165,277.76 131,658.95
(iii) Cash & Cash Equivalents 15 2,579.00 526.37
(iv) Bank Balances other than (iii) above 16 6,020.30 26,741.57
(v) Loans 17 536.33 401.98
(iv) Other Financial Assets 18 45,537.62 63,109.36
(c) Current Tax Assets 3,629.32 2,065.25
(d) Other Current Assets 19 21,900.35 12,095.06
Total Current Assets 303,598.08 264,760.30
Total Assets 350,238.52 313,192.84
EQUITY AND LIABILITIES
EQUITY
(a) Equity Share Capital 20 16,337.12 16,337.12
(b) Other Equity 21 71,174.27 68,753.16
Total Equity 87,511.39 85,090.28
LIABILITIES
1. Non-current liabilities
(a) Financial Liabilities
(i) Borrowings - -
(ii) Trade Payables 22 3,199.83 5,365.98
(iii) Other Financial Liabilities 23 13,367.86 4,763.71
(b) Provisions 24 10,861.78 5,159.80
(c) Other non-current liabilities 25 13,803.66 8,305.59
Total Non-Current Liabilities 41,233.13 23,595.08
2. Current liabilities
(a) Financial Liabilities
(i) Borrowings 26 - 28,334.60
(ii) Trade payables 27 93,585.62 76,795.61
(iii) Other Financial Liabilities 28 11,985.42 5,792.23
(b) Provisions 29 10,560.07 8,994.80
(c) Current Tax Liabilities - -
(d) Other current liabilities 30 105,362.89 84,590.24
Total Current Liabilities 221,494.00 204,507.48
Total Equity and Liabilities 350,238.52 313,192.84
Significant Accounting Policies and other Notes
forming part of the Financial Statements
As per our report of even date attached
For Electronics Corporation of India Limited for RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) KISHOR RUNGTA M SRIRAMA SARAN PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director (Finance) Company Secretary Partner
DIN: 08128562 DIN: 00231106 M.No.:212851
Place : Hyderabad
Date : 04/08/2018

51st Annual Report 2017-18 56

 Electronics Corporation of India Limited
Statement of Profit & Loss for the year ended March 31, 2018 (Rs. in lakhs)
Particulars Note Figures for the current Figures for the previous
No reporting period reporting period
March 31, 2018 March 31, 2017
INCOME
i) Revenue From Operations 31 140,728.29 149,731.91
ii) Other Income 32 4,214.37 3,280.82
Total Income 144,942.66 153,012.73
EXPENSES
i) Cost of material consumed 33 86,475.26 82,200.67
ii) Changes in inventories of finished goods, and work in progress 34 (20,087.68) 1,446.24
iii) Excise Duty 596.86 7,270.90
iv) Employees’ Benefit Expenses 35 36,475.21 29,313.11
v) Finance Cost 36 2,024.04 2,897.49
vi) Depreciation & Amortization Expenses 37 2,713.28 2,543.09
vii) Other Expenses 38 28,345.09 18,933.24
Total Expenses 136,542.06 144,604.74
Profit before exceptional items and tax 8,400.60 8,407.99
Exceptional Items - -
Profit Before Tax 8,400.60 8,407.99
Tax Expenses
Current Tax 1,349.67 3,340.62
-Minimum Alternate Tax Credit Entitlement - -
Tax relating to Earlier Years 10.42 (145.94)
-Deferred Tax 1,768.58 (548.04)
Profit for the period from continuing operations 5,271.93 5,761.35
Profit/(loss) from discontinued operations - -
Tax expense of discontinued operations - -
Profit/(loss) from discontinued operations after tax - -
I Profit for the Period 5,271.93 5,761.35
II Other Comprehensive Income 39
i) Items that will not be reclassified to profit or loss:
Changes in fair value of Equity Instruments 58.71 197.67
Income Tax relating to these items (20.51) (68.41)
Remeasurement of Define Benefit Plans (2,339.41) (175.14)
Income Tax relating to these items 809.67 60.62
Other Comprehensive Income (1,491.54) 14.74
Total Comprehensive Income for the period 3,780.39 5,776.09
Earnings per equity share :
No.of Equity shares of par value of Rs.1000 each 1633712 1633712
(1) Basic 322.70 352.65
(2) Diluted 322.70 352.65
Significant Accounting Policies and other Notes forming part of the
Financial Statements
As per our report of even date attached
For Electronics Corporation of India Limited for RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) KISHOR RUNGTA M SRIRAMA SARAN PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director (Finance) Company Secretary Partner
DIN: 08128562 DIN: 00231106 M.No.:212851
Place : Hyderabad
Date : 04/08/2018

57 51st Annual Report 2017-18

 Electronics Corporation of India Limited
Cash Flow Statement for the year ended March 31, 2018 (Rs. in lakhs)
Particulars Note Figures as at the end of Figures as at the end of
No Current Reporting Period Previous Reporting Period
March 31, 2018 March 31, 2017
A. CASH FLOW FROM OPERATING ACTIVITIES
NET PROFIT/(LOSS) BEFORE TAX 8,400.60 8,407.99
Adjustments for :
Depreciation 2713.28 2,543.09
Interest expense 2024.04 2,897.49
Dividends received (18.38) (18.38)
Interest received on Short Term Deposit Receipts (895.55) (1,887.63)
Expenditure on Corporate Social Responsibility Activities 139.02 160.23
Write off of Fixed Assets 1.70 0.07
Operating profit before Working Capital changes 12,364.71 12,102.86
Increase/Decrease Inventories (29,955.64) (4,095.57)
Increase/Decrease Trade Receivables (32,531.13) 6,044.77
Increase/Decrease Loans and advances (134.35) 40.23
Increase/Decrease Other Current Assets (11,044.43) 2,473.00
Increase/Decrease Current liabilities 23718.68 13,157.80
Increase/Decrease Provisions 7267.25 103.32
Increase/Decrease Trade Payables 14623.86 (3,417.15)
Increase/Decrease Other Financial Laibilities 14797.34 (3,059.24)
Increase/Decrease Other Financial Assets 18948.33 (17,569.28)
Increase/Decrease Bank Balances 20721.27 -
Increase/Decrease Current Tax Assets (3,527.15) (3,402.15)
Cash generated from operations 35,248.74 2,378.59
Expenditure on Corporate Social Responsibility Activities (139.02) (160.23)
Grants received 6803.62 5,481.14
Grants utilisation (4,251.58) (5,190.43)
Cash flow before extraordinary items 37,661.76 2,509.07
Extraordinary items -
Net cash from operating activities 37,661.76 2,509.07

B. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of fixed assets (5,874.96) (2,060.10)
Fixed assets in transit and capital work in progress 99.12 (592.85)
Intangible Assets under development - -
Interest received 1866.25 1,918.43
Dividend received 18.38 18.38
Net cash from investing activities (3,891.21) (716.14)

C. CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from term loan from Banks (28,334.60) 2,797.94
Interest expense (2,024.04) (2,911.52)
Dividend paid (1,129.37) (1,490.84)
Dividend tax paid (229.91) (303.50)
Net cash used in financing activities (31,717.92) (1,907.92)
Net increase in cash and cash equivalents 2,052.63 (114.99)
Cash and cash equivalents (Opening Balance) 526.37 641.36
Cash and cash equivalents (Closing Balance) 2579.00 526.37
Change in Liability arising from financinig activities:
Particulars 1st April,2017 Cash Flow Foreign Exchange Movement 31st March,2018
Borrowings-Non Current - - - -
Borrowings- Current 28,334.60 (28,334.60) - -
D. Notes forming part of the Financial Statements.
As per our report of even date attached
For Electronics Corporation of India Limited for RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) KISHOR RUNGTA M SRIRAMA SARAN PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director (Finance) Company Secretary Partner
DIN: 08128562 DIN: 00231106 M.No.:212851
Place : Hyderabad
Date : 04/08/2018

51st Annual Report 2017-18 58

 Electronics Corporation of India Limited
Statement of Changes in Equity
A. EQUITY SHARE CAPITAL (Rs. in lakhs)

Balance at the Beginning of the Reporting Changes in Equity Share capital Balance at the End of the Reporting
Period as at April 01, 2016 during the year Period as at March 31, 2017
16337.12 0 16337.12

Balance at the Beginning of the Reporting Changes in Equity Share capital Balance at the End of the Reporting
Period as at April 01, 2017 during the year Period as at March 31, 2018
16337.12 0 16337.12

B. OTHER EQUITY
Particulars Reserves and Surplus Other items of other
General Reserve Retained Earnings comprehensive Income Total

Balance at the Beginning of the Reporting 2,056.46 60,682.73 140.21 62,879.40

Period as at April 01, 2016
Changes in accounting policy/ prior - 1,938.58 (46.57) 1,892.01
period errors
Restated balance at the beginning of the 2,056.46 62,621.31 93.64 64,771.41
Accounting Period as at April 01, 2016
Profit for the year 5,761.35 - 5,761.35
Other comprehensive Income for the year - (114.52) 129.26 14.74
Dividend paid - (1,794.34) - (1,794.34)
Transfer to Retained Earnings - - - -
Balance at the end of the Reporting 2,056.46 66,473.80 222.90 68,753.16
Period as at March 31, 2017

Particulars Reserves and Surplus Other items of other

General Reserve Retained Earnings comprehensive Income Total

Balance at the Beginning of the Reporting 2,056.46 66,473.80 222.90 68,753.16

Period as at April 01, 2017
Changes in accounting policy/ prior - - - -
period errors
Restated balance at the beginning of the 2,056.46 66,473.80 222.90 68,753.16
Accounting Period as at April 01, 2017
Profit for the year 5,271.93 5,271.93
Other comprehensive Income for the year - (1,529.74) 38.20 (1,491.54)
Dividend & Dividend Tax paid - (1,359.28) - (1,359.28)
Transfer to Retained Earnings - - - -
Balance at the end of the Reporting 2,056.46 68,856.71 261.10 71,174.27
Period as at March 31, 2018

As per our report of even date attached

For Electronics Corporation of India Limited for RAMANATHAM & RAO
Chartered Accountants
FRN 2934S

REAR ADMIRAL SANJAY CHAUBEY (Retd.) KISHOR RUNGTA M SRIRAMA SARAN PRASAD CA L. MAHESH KUMAR
Chairman & Managing Director Director (Finance) Company Secretary Partner
DIN: 08128562 DIN: 00231106 M.No.:212851
Place : Hyderabad
Date : 04/08/2018

59 51st Annual Report 2017-18

Note 1: Significant Accounting Policies
1. CORPORATE INFORMATION
Electronics Corporation of India Limited (ECIL)
(the Company) is a public Company domiciled
in India, incorporated under the provisions of
the Companies Act applicable in India. The
registered office of the Company is located at
Hyderabad, Telangana, India.
The Company is a public sector enterprise
under the administrative control of the
Department of Atomic Energy, Government of
India. ECIL manufactures and supplies
electronic equipments and systems to Nuclear,
Defence, Aerospace, Telecom, IT and E-
Governance etc.
2. BASIS OF ACCOUNTING
The financial statements have been prepared
in accordance with Indian Accounting
Standards (here in after referred as IND AS) as
notified under section 133 of the Companies
Act, 2013 read with Rule 3 of the Companies
(Indian Accounting Standards) Rules, 2015 and
the Companies (Indian Accounting Standards)
Amendment Rules, 2016.
3. USE OF ESTIMATES
The preparation of financial statements in
conformity with IND AS requires management
to make estimates, judgments and
assumptions (including revisions if any). These
estimates, judgments and assumptions affect
the application of accounting policies and
reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities
at the date of financial statements and the
reported amounts of revenue and expenses
during the period.
Appropriate changes in the estimates are
made as management becomes aware of
changes in circumstances. Changes in the
estimates are reflected in the financial
statements in the period in which changes are
made.
51st Annual Report 2017-18
4. BASIS OF MEASUREMENT
The financial statements have been prepared
on a historical cost basis except for certain
assets and liabilities which have been
measured at fair value as per IND AS.
The financial statements are presented in
Indian Rupees (INR) being the functional
currency of the Company, rounded off to the
nearest lakh with two decimals, except
otherwise stated.
5. RECOGNITION OF REVENUE
(i) Sales include Excise Duty and exclude
Sales Tax / Value Added Tax and Service
Tax up to 30.06.2017. Sales exclude Goods
and Service Tax (GST) with effect from
01.07.2017.
(ii) Revenue is recognized on accrual basis
inter alia, in the following cases :
a) In case of FOR destination cases,
Revenue is recognized on dispatch if
there is reasonable expectation of the
goods reaching the destination within
the accounting period.
b) In case of Ex-works contracts, revenue
is recognized when the goods are
handed over to the carrier for
transmission to the buyer.
c) In respect of composite contracts
involving supply and services where
price breakup is available, revenue in
respect of supplies are recognized
when goods are delivered to customers
unconditionally and service income is
recognized based on completion of
services. And where price breakup is
not available, revenue is recognized as
per contract value duly allocating the
revenue to those separate components
as determined in the scope of the
respective contracts, based on their
relative fair value.
d) Revenue is recognized in respect of
services / software against completion
60
 of milestones/acceptance/acknow-
ledgement, where breakup values are
available in contract or based on
technical estimates where such break
up values are not available.
e) If the sale price is pending finalization,
revenue is recognized based on the
determined fair value of the contract.
(iii) Revenue is recognized on transfer of items
(for Defence) to the bonded stores
awaiting field-testings in line with
business practice.
(iv) In case of turnkey / composite contracts
of complex equipment / systems, where
the normal cycle time for completion is
more than 12 months, subject to
provision of anticipated losses, revenue is
recognized (excluding taxes and duties) on
the basis of percentage completion
method based on the percentage of actual
contract cost incurred upto the reporting
date to the total estimated cost of the
contract.
(v) Interest income is recognized using the
effective interest rate method.
(vi) Income from dividend is recognized when
the right to receive the payment is
established.
6. INVENTORY
i. Raw materials, stores and spares and
components are valued at cost
(excludingGST/CENVAT/VAT) by using
weighted average cost formula or NRV
whichever is lower. Inventories which are
non-moving for more than 3 years and
which may not be required for further use
are suitably provided and in the case of
inventories which are less than 3 years old,
provision is made as assessed technically.
ii. Work in Progress of products / projects is
valued at Factory Cost or NRV whichever
is lower and such valuation is based on
technical estimate as to the stage of
progress.
61
iii. Finished goods are valued at “factory
cost” or “net realizable value” whichever
is lower.
iv. Scrap is valued at “net realizable value”.
v. “Factory cost” comprises Direct material,
Direct labour, Direct expenses and factory
overheads.
vi. “Net Realisable Value” is the contracted
selling price in the ordinary course of
business less the estimated cost of
completion and estimated costs
necessary to make the sale.
7. PROPERTY, PLANT & EQUIPMENT
A. a) Property, plant & equipment are stated
at cost net of eligible Input credits of Taxes
and Duties wherever applicableand
subsequently at cost less depreciation and
impairment losses if any.
b) Equipment manufactured for internal use
is capitalized at Factory cost. Factory cost
comprises Direct Material, Direct labour,
Direct expenses and factory overheads.
c) Assets are depreciated on straight line
method and depreciation is charged on
monthly pro rata basis for the additions /
deletions during the year. The useful life
of the assets adopted are as per Schedule
II to the Companies Act, 2013, except in
the following casesbased on technical
advice:
(i) Where the cost of the asset is Rs.10, 000/
- or below, depreciation is at 100% of the
cost retaining Re.1/- in the net block.
(ii) Computer Systems acquired by Computer
Education Division (CED) and systems sent
on hire or for demonstration or for use
outside factory is depreciated @50%.
(iii) Assets acquired by Electronic
Manufacturing Services Division
(EMSD)under the heads of (i) Plant and
Machinery and (ii) Electronic Testing and
Measuring Equipment which are
depreciated at a rate of 50%.
51st Annual Report 2017-18
 (iv) Structures, Erections, Warehouses,
Electrical Installations and other similar
enabling works at projects / sites are
depreciated considering the tenure of the
contracts.
(v) Assets acquired out of Grants are
amortized over a period of 3 years.
B. IMPAIRMENT OF ASSETS
As at the end of each Balance Sheet date, the
carrying amount of assets is assessed as to
whether there is any indication of impairment.
If the estimated recoverable amount is found
less than its carrying amount, the impairment
loss is recognized and assets are written down
to their recoverable amount.
C. INTANGIBLE ASSETS
a) The cost of software (which is not an
integral part of the related hardware)
acquired for internal use, together with
outsourced cost of development /
implementation, resulting in significant
future economic benefits is recognized as
an intangible asset in the books of
accounts when the same is ready for use
and will be amortized on straight line
method over a period to be specified as
per the technical evaluations from the
year the asset is put to use.
Intangible assets that are not yet ready
for their intended use as at the Balance
sheet date are classified as “Intangible
Assets under Development”.
b) Expenditure on Technical Knowhow fees,
Software, Training of Personnel etc. are
charged off to statement of profit and loss
on incurrence. However, in case of
Technical Know How charges incurred for
new product lines or upgradations which
generate future economic benefits, such
expenditure is amortised, based on
technical assessment over the life cycle of
the Project not exceeding 5 years.
51st Annual Report 2017-18
8. PREPAID EXPENSES
Prepaid expenses of items of Rs.1,00,000 and
below are charged to natural heads of
accounts.
9. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are
accounted at functional currency, at the
exchange rate prevailing on the date of
transactions. Gains / losses arising out of the
fluctuations in the exchange rate between
functional currency and foreign currency are
recognized in the Statement of Profit & Loss in
the period in which they arise.
The fluctuations between foreign currency and
functional currency relating to monetary items
at the year ending are accounted as gains /
losses in the Statement of Profit & Loss.
10. GOVERNMENT GRANTS
Government grants are recognized where
there is a reasonable assurance that the grant
will be received and all the attached conditions
will be complied with.
Grants relating to income are reduced from the
related expense.
Grants relating to asset is disclosed in Balance
Sheet as deferred income. The deferred
income is recognized in profit or loss on a
systematic basis over 3 years as per technical
advice.
11. RESEARCH & DEVELOPMENT
EXPENDITURE
Research and development expenditure of
revenue nature is charged off to revenue when
incurred. Assets acquired for research
purposes are capitalised.
12. EMPLOYEE BENEFITS
The company provides for Gratuity, a Defined
Benefit retirement plan covering eligible
employees. The gratuity plan provides a lump-
sum payment to vested employees at
62
 retirement, death or termination of
employment of an amount based on the
respective employee’s salary and the tenure
of employment with the company. Liabilities
with regard to Gratuity plan are determined
by the actuarial valuation at each balance sheet
date. Actuarial gain/loss is recognized in the
statement of profit and loss.
Retirement benefit in the form of provident
fund is a Defined Contribution scheme.
Contribution made to provident fund trust is
accounted on accrual basis.
Leave encashment liabilities are made on the
basis of actuarial valuations as at the end of
the year and actuarial gain/loss are recognized
in the statement of profit and loss.
13. BORROWING COSTS
Borrowing costs directly attributable to the
acquisition, construction or production of
qualifying assets are capitalised till the month
in which the asset is ready to use as part of the
cost of that asset. Other borrowing costs are
recognised as an expense in the period in which
these are incurred.
14. INCOME TAXES
Income tax expense represents the sum of
current tax payable and deferred tax.
Current Tax: The tax currently payable is based
on the current year taxable profit for the year.
The current tax is calculated using the tax rates
that have been enacted or substantively
enacted at the end of the reporting period.
Deferred tax: Deferred tax is provided using the
Balance Sheet method on temporary
differences between the tax bases of assets and
liabilities and their carrying amounts for
financial reporting purposes at the reporting
date.
Deferred tax assets are generally recognised for
all deductible temporary differences to the
extent that it is probable that the taxable
profits will be available against which those
63
deductible temporary differences can be
utillized. Deferred tax is calculated using the
tax rates that have been enacted or
substantively enacted at the end of the
reporting period.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilised.
15. INVESTMENTS
Investments including investments in Joint
Venture are valued at Fair Value under Net
Book value method.
16. LEASES
Assets given on operating lease are capitalized
and related lease income is recognized as
income, over the lease period, on a straight line
basis.
Operating lease payments are recognised as
expense on a straight line basis over the lease
term.
In respect of lease and sub-lease arrangement,
the lease rental received and payable are
recognized as income and expenditure
respectively in the Statement of Profit & Loss
on accrual basis.
17. LIQUIDATED DAMAGES
Claims for liquidated damages against the
Company are considered as and when
contractually due except those which are
considered by Management as negotiable and
not payable. However, the same are treated
as Contingent Liability.
18. PROVISIONS, CONTINGENT LIABILITIES
AND CONTINGENT ASSETS
Provisions are recognized in the books when
there is a present obligation as a result of past
events involving substantial degree of
51st Annual Report 2017-18
 estimation and it is probable that there will be
an outflow of economic resources. Show cause
notices issued by Government Authorities
where the probability of outflow of economic
resources is remote are not considered as
obligations. When the demands are raised
against show-cause notices and are disputed
by the company, these are treated as disputed
obligations along with other contingent
liabilities. Such contingent liabilities are not
recognized but are disclosed in the notes.
Contingent Assets are neither recognized nor
disclosed in the financial statements.
19. EARNINGS PER SHARE
The Company presents basic and diluted
earnings per share data for its ordinary shares.
Basic earnings per share is calculated by
dividing the profit or loss attributable to
ordinary shareholders of the Company by the
weighted average number of ordinary shares
outstanding during the year, adjusted for own
shares held. Diluted earnings per share is
determined by adjusting the profit or loss
attributable to ordinary shareholders and the
weighted average number of ordinary shares
outstanding, adjusted for own shares held, for
the effects of all dilutive potential ordinary
shares.
20. FINANCIAL INSTRUMENTS
A. Non-Derivative Financial Instruments
Non-derivative financial instruments are
recognized initially at fair value when the
Company becomes a party to the contractual
provisions of the instrument.
Non-derivative financial instruments consists
of
a) Financial Assets which includes Cash and
Cash equivalents, trade receivables,
unbilled revenue and eligible current and
non-current assets.
51st Annual Report 2017-18
b) Financial Liabilities includes short term
and long term borrowings, bank
overdrafts, trade payables and eligible
current and non-current liabilities.
B. Cash and cash equivalents
Cash and cash equivalents include all cash
balances and short-term highly liquid
investments with an original maturity of three
months or less that are readily convertible into
known amounts of cash which are subject to
insignificant risk of change in value.
Bank overdraft, if any is shown within
borrowings in current liabilities in the Balance
Sheet.
C. Trade receivables
Receivables are recognized initially at fair value,
which is the transaction value.
Subsequently on review if there is an indication
that those may be impaired, consequent loss
is recognised through statement of Profit or
Loss.
D. Trade and other payables
Liabilities are recognized for amounts to be
paid in future for goods or services received,
whether billed by the supplier or not.
21. EVENTS AFTER THE REPORTING
PERIOD
Adjusting events are events that provide
further evidence of condition that existed at
the end of the reporting period. The financial
statements are adjusted for such events before
authorization for issue.
22. WARRANTY PROVISIONS
Provision for warranty is recognised on sale of
products and contract revenue recognised
based on historical experience.
*****
64
 Note 2: Property, Plant & Equipment
The changes in the Carrying value of the Property,Plant and Equipment for the year ended March 31, 2018 are as follows: Rs. in lakhs

S.No Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block

Additions & Deductions Charged to Deductions &

As at Adj.During & Adj.During Total As at Upto Statement of Adj.During Total As at As at
01.04.2017 the Year the Year 31.03.2018 31.03.2017 Profit & Loss the Year 31.03.2018 31.03.2018
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 3,520.47 1,104.74 - 4,625.21 425.62 283.94 - 709.56 3,915.65
3 Plant & Equipment 9,210.50 3,403.65 2.91 12,611.24 2,727.24 1,697.34 1.31 4,423.27 8,187.97
4 Furniture & Fixtures 1,055.89 644.26 - 1,700.15 314.33 283.88 - 598.21 1,101.94
5 Vehicles 85.21 2.62 - 87.83 25.65 13.88 - 39.53 48.30
6 Office Equipment 695.33 427.81 1.27 1,121.87 281.31 147.60 1.13 427.78 694.09
7 Others: - -
a) Research & Development-Plant & Machinery 1,259.50 249.51 7.01 1,502.00 577.80 276.83 14.80 839.83 662.17
b) Computer Systems hired out to Customers 169.95 - - 169.95 169.95 - - 169.95 -
c) Assets held at Customer site (BOOT/BOMT) 24.97 - 0.01 24.96 24.97 - 0.01 24.96 -
Total 16,891.63 5,832.59 11.20 22,713.02 4,546.87 2,703.47 17.25 7,233.09 15,479.93

65
The changes in the Carrying value of the Property,Plant and Equipment for the year ended March 31, 2017 are as follows: Rs. in lakhs

S.No Particulars Gross Carrying Value as at 31.03.2017 Accumulated Depreciation as at 31.03.2017 Net Block

Additions & Deductions Charged to Deductions &

As at Adj.During & Adj.During Total As at Upto Statement of Adj.During Total As at As at
01.04.2016 the Year the Year 31.03.2017 31.03.2016 Profit & Loss the Year 31.03.2017 31.03.2017
1 Land (Free hold) 869.81 - - 869.81 - - - - 869.81
2 Buildings 2,496.67 1,023.80 - 3,520.47 193.96 231.67 - 425.62 3,094.84
3 Plant & Equipment 8,825.69 384.87 0.06 9,210.50 1,385.34 1,341.89 - 2,727.24 6,483.26
4 Furniture & Fixtures 864.63 191.26 0.00 1,055.89 158.86 155.47 - 314.33 741.56
5 Vehicles 61.85 23.36 0.00 85.21 14.05 11.60 - 25.65 59.56
6 Office Equipment 582.12 113.21 0.01 695.33 151.69 129.62 - 281.31 414.02
7 Others: - -
a) Research & Development-Plant & Machinery 935.89 323.61 - 1,259.50 284.71 293.09 - 577.80 681.70
b) Computer Systems hired out to Customers 169.95 - 0.00 169.95 107.33 62.61 - 169.95 0.00
c) Assets held at Customer site (BOOT/BOMT) 24.97 - 0.00 24.97 18.73 6.24 - 24.97 0.00
Total 14,831.58 2,060.11 0.07 16,891.63 2,314.67 2,232.20 - 4,546.87 12,344.76

51st Annual Report 2017-18

Note: 2 A
1. a) The Department of Atomic Energy (DAE) has made Deed of Grant in favour of the company granting
Acres 278-05 Guntas of land free of cost in Keesara and Uppal Mandals, Rangareddy District. The land
was granted for the purpose for which ECIL was incorporated, provided that no part of the Land shall
be sold or brought to sale. Out of the grant of Acres 278-05 Guntas, the company was conveyed Acres
229-01 Guntas and the same were mutated in favour of the company in the revenue records.

b) Out of grant of Acres 278-05 Guntas DAE has identified Acres 31-10 Guntas of lands in S. Nos. 223/7,
288, 711 and 24. However the land is yet to be transferred and mutated in the revenue records in
favour of the company. The company is in possession of this land.

c) Out of grant of Acres 278-05 Guntas balance Acres 17-34 Guntas of land is neither identified nor
mutated in favour of the company.

d) The company is in excess possession of Acres 20-30 Guntas of land under Survey No.223/09, 223/10,
223/13 in Kapra Village, Keesara Mandal, Rangareddy District. This land was transferred by State
Government to DAE. However, the land is not yet conveyed in favour of the company.

2. The company has purchased Acres 2-11 Guntas of land at Moula-Ali, Hyderabad from Andhra Pradesh
Industrial Infrastructure Corporation Ltd (APIIC). APIIC agreed for exchange of this land with a land
admeasuring Acres 2-65 Guntas in Moula-Ali. In the process the company will have title for an additional
land of Acres 0-533 Guntas for which the company has paid additional consideration of Rs. 1,65,103/-.
Conveyance in respect of exchange properties in favour of the company from APIIC is not yet completed.

3. The company acquired 60 residential quarters at DAE Colony, D-Sector, each quarter admeasuring about
570 Sft. in the year 1991-92 at cost of Rs. 81,80,000 from the DAE. These quarters are not conveyed to the
company, however, the company is in possession of these quarters.

4. The DAE vide letter No.5/10(5)/2000-PSU/Vol.III/61, dated 10.01.2002 conveyed the approval of the
President of India for transfer of ownership of land admeasuring 2773.50 Sq. yards and Buildings for its
office situated at Prabhadevi, Mumbai free of cost to the company. The mutation of the property is not yet
completed.

5. The company was allotted following flats in Local Shopping Complex at Naraina Block, New Delhi for its
office premises by the Delhi Development Authority (DDA) in the year 1996. DDA has issued Allotment
Letters and Possession Slips for these flats in favour of the company. The company is in possession of these
properties. However, Sale Deeds or other documents are not executed in respect of these properties in
favour of the company.

a) Flat bearing No. B-7, B-Block, 2nd Floor, admeasuring 327-55 Sq. meters for a consideration of
Rs. 1,03,48,937/-.

b) Flat bearing No. D-15, D block, 3rd Floor, admeasuring 270-80 Sq. meters for a consideration of
Rs. 93,31,300/-.

51st Annual Report 2017-18 66

6. The company has entered into Articles of Agreement on 10.12.1976 with Deepak Builders Pvt. Ltd., for
purchase of 2 shops bearing Nos. 37 and 38 at Vishal Co-operative Housing Society Ltd., M.V. Road, Andheri
(East), Mumbai admeasuring 567 Sq.ft. for a consideration of Rs. 1,41,000/-. The Sale Deed in respect of
this property is not yet executed in favour of the company.

7. The company entered into a Registered Agreements of Sale with three partnership firms viz., M/s Haria
Enterprises, M/s Package Foods and M/s Jayesh Trading Company on 11.11.1974, for the purchase of Shop
Nos.1 to 3, Parasmani, M.G.Road, Naupada, Thane, Mumbai admeasuring 1225 Sq. ft. for a consideration
of Rs. 2,09,950/-. The Sale Deed is not yet executed in favour of the company.

8. The company entered into a Registered Agreement of Sale with Maganlal Popatlal Charity & Sarvodaya
Hospital Trust for purchase of 10 residential flats at Chembur, Mumbai bearing No.B-3, 4, 7, 8, 11, 12, 16 &
C-5 to C-7 in a total area of 5,585 Sq. ft. in Survey No.S-470 to 479 in the year 1982-83 for the purpose of
guest house and residence of employees, for a consideration of Rs. 25,13,250/-. The Sale Deed is not yet
executed in favour of the company.

Note : 2 B
1. The Property, Plant and Equipment additions made during the year include assets acquired out of Grants
by DAE, Government of India amounting to Rs. 218.85 lakhs (previous year Rs 315.82 lakhs)and assets
funded by BARC amounting to Rs.2716.65 lakhs (Previous year Rs 13.78 lakhs ) aggregating to Rs. 2935.50
lakhs (previous year Rs.329.60 lakhs ).

2. Obsolete assets having a net value of Rs. 1.71 lakhs (previous year Rs. 0.07 lakhs) are reduced from Carrying
Gross Block. Aggregate Gross Value of all these assets as at March 31, 2018 is Rs 4.88 lakhs (previous Year
Rs. 1073.58 lakhs).

3. No amount was charged towards amortization of Tools during the year (previous year Nil) procured for
execution of order received from Election Commission of India to manufacture EVMs. Out of the total Tool
cost of Rs.340.65 lakhs, an amount of Rs. 279 lakhs was amortized upto the year 2016-17 leaving a balance
of Rs.61.65 lakhs which will be charged off in the forthcoming years based on EVMs manufactured.

4. Based on the review of the tangible assets deployed in the company, the Technical Committee felt that
though some part of the asset is significant to total cost of the asset, the useful life of such parts are not
different from the useful life of the remaining part(s), as all assets are in the nature of electronic equipment
where the useful life of intrinsic parts of the equipment are almost uniform. Accordingly, uniform useful
lives have been adopted for fixed assets for computation of depreciation.

67 51st Annual Report 2017-18

Note 3: Capital Work-in-Progress
The changes in the Capital Work-in-Progress for the year ended March 31, 2018 are as follows: Rs. in lakhs
Carrying Value as at 31.03.2018
S.No Particulars As at 01.04.2017 Additions during the year Adjustments/Deductions Value as at
during the year 31.03.2018
1 Capital Equipment-in-transit 177.90 951.57 389.98 739.49
2 Capital Work-in-progress 1877.57 1010.37 1671.08 1216.86
Total 2055.47 1961.94 2061.06 1956.35
The changes in the Capital Work-in-Progress for the year ended March 31, 2017 are as follows:
Carrying Value as at 31.03.2017
S.No Particulars As at 01.04.2016 Additions during the year Adjustments/Deductions Value as at
during the year 31.03.2017
1 Capital Equipment-in-transit 82.70 177.90 82.70 177.90
2 Capital Work-in-progress 1379.92 1697.85 1200.20 1877.57
Total 1462.62 1875.75 1282.90 2055.47

Note 4: Investment Property

The changes in the Carrying value of the Investment Property for the year ended March 31, 2018 are as follows: Rs. in lakhs
Net Block
S. Particulars Carrying Value as at 31.03.2018 Depreciation as at 31.03.2018 as at
No 31.03.2018
Additions & Deductions Charged to Deductions
As at Adj.During & Adj. Total As at Upto Statement & Adj. Total As at As at
01.04.2017 the Year During the 31.03.2018 31.03.2017 of Profit During the 31.03.2018 31.03.2018
Year & Loss Year
1 Buildings (Leased) 118.61 - - 118.61 5.78 2.89 - 8.67 109.94
Total 118.61 - - 118.61 5.78 2.89 - 8.67 109.94

The changes in the Carrying value of the Investment Property for the year ended March 31, 2017 are as follows: Rs. in lakhs
Net Block
S. Particulars Carrying Value as at 31.03.2017 Depreciation as at 31.03.2017 as at
No 31.03.2017
Additions & Deductions Charged to Deductions
As at Adj.During & Adj. Total As at Upto Statement & Adj. Total As at As at
01.04.2016 the Year During the 31.03.2017 31.03.2016 of Profit During the 31.03.2017 31.03.2017
Year & Loss Year
1 Buildings (Leased) 118.61 - - 118.61 2.89 2.89 - 5.78 112.83
Total 118.61 - - 118.61 2.89 2.89 - 5.78 112.83

Note 5: Other Intangible Assets

The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2018 are as follows: Rs. in lakhs
S. Particulars Gross Carrying Value as at 31.03.2018 Accumulated Depreciation as at 31.03.2018 Net Block
No Additions & Deductions Charged to Deductions
As at Adj.During & Adj. Total As at Upto Statement & Adj. Total As at As at
01.04.2017 the Year During the 31.03.2018 31.03.2017 of Profit During the 31.03.2018 31.03.2018
Year & Loss Year
1 Technical Knowhow 616.00 34.62 - 650.62 616.00 6.92 - 622.92 27.70
Total 616.00 34.62 - 650.62 616.00 6.92 - 622.92 27.70
The changes in the Carrying value of the Intangible Assets for the year ended March 31, 2017 are as follows: Rs. in lakhs
S. Particulars Gross Carrying Value as at 31.03.2017 Accumulated Depreciation as at 31.03.2017 Net Block
No Additions & Deductions Charged to Deductions
As at Adj.During & Adj. Total As at Upto Statement & Adj. Total As at As at
01.04.2016 the Year During the 31.03.2017 31.03.2016 of Profit During the 31.03.2017 31.03.2017
Year & Loss Year
1 Technical Knowhow 616.00 - - 616.00 308.00 308.00 - 616.00 -
Total 616.00 - - 616.00 308.00 308.00 - 616.00 -

51st Annual Report 2017-18 68

Note 6: Intangible Assets under Development Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
Enterprise Resource Planning Licenses and Implementation 926.75 926.75
Less: Provision for Impairment (926.75) -
Total - 926.75

Note 7: Investments Non-Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Investments in Equity Instruments (UnQuoted-Considered at Fair Value)
1. Investment in M/s Andhra Pradesh Gas Power Corporation limited
7,28,900 Equity Shares of Rs.10/- each fully paid including 291.70 232.99
1,92,960 bonus shares of Rs.10/-each
2. Investment in ECIL Employees Consumer Co-operative Society 0.02 0.02
Limited, 250 shares of Rs.10/- each fully paid
3. Investment in Joint Venture M/s. ECIL - Rapiscan Ltd.,
14,70,000 equity shares in Rs. 10/- each fully paid including 3,529.54 3,529.54
7,35,000 Bonus shares of Rs.10 each
Total 3,821.26 3,762.55

Note 8: Trade Receivables Non-Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured, considered good 4,622.98 5,710.66
Doubtful 11,367.94 16,699.88
Allowances for doubtful debts/Liquidated Damages (11,367.94) (16,699.88)
Total 4,622.98 5,710.66

Note 9: Loans Non-Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured (considered good)
Others Loans 1.31 1.31
Less : Provision for Doubtful Loans (1.31) (1.31)
Total - -

Note 10: Other Financial Assets Non- Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured, considered good
Deposits 2,340.34 1,970.96
Unbilled Revenue 10,581.68 13,501.83
Claims Receivable 595.35 391.87
Unsecured, Doubtful
Deposits 77.33 77.33
Less: Provision for Doubtful Deposits (77.33) (77.33)
Claims Receivable 5.31 5.31
Less: Provision for Doubtful Claims (5.31) (5.31)
Total 13,517.37 15,864.66

69 51st Annual Report 2017-18

Note 11: Deferred Tax Asset Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
Deferred Tax Liabilities
Property plant and equipment and intangible assets 4,934.77 3,617.60
Investments remeasurement 3,656.62 3,597.91
Change in the opening value of Investments(fair value)
Total Deferred Tax Liabilities 8,591.39 7,215.51
Deferred tax assets
Provision for employee benefits 10,538.70 9,378.11
Provision for doubtful debts and advances 11,820.58 17,111.55
Provision for warranty 987.27 929.46
Others 1,351.22 1,225.59
Total Deferred Tax Assets 24,697.77 28,644.71
Net Deferred Tax Assets 16,106.38 21,429.20
Deferred Tax Asset 5,627.57 7,416.66

Note 12: Other Non- Current Assets Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured, considered good
Capital Advances 1,244.17 199.28
Others 233.17 38.92
Unsecured, Doubtful
Advance to Suppliers 375.82 334.86
Less : Provision for Doubtful Advances (375.82) (334.86)
Total 1,477.34 238.20

Note 13: Inventories Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Raw Materials 28,355.80 18,200.22
(includes goods in transit valued at Rs.3916.71 lakhs as on
31st March,2018, Rs.4324.05 lakhs as on 31st March, 2017 )
Less : Provision for Obselete Raw materials (417.90) (294.56)

Work-in-Progress 17,392.47 6,687.88

Finished Goods 10,066.41 583.32
Stores & Spares 2,214.24 2,123.04
Loose Tools 10.66 323.63

Others:
Packing Material 295.72 238.23
Scrap 200.00 300.00
Total 58,117.40 28,161.76

51st Annual Report 2017-18 70

Note 14: Trade Receivables- Current Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
Unsecured, considered good 165,277.76 131,658.95
Doubtful 13,409.80 8,520.48
Less: Provision for Doubtful Debts/Liquidated Damages (13,409.80) (8,520.48)
Total 165,277.76 131,658.95

Note 15: Cash & Cash Equivalents Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Balances with Banks
(a) in Current Account 2,551.33 515.61
Cash on hand 3.91 9.77
Others
(a) Imprest Cash With Officers 0.32 0.34
(b) Remittances in Transit 23.44 0.65
Total 2,579.00 526.37

Note 16: Bank Balances other than above Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Earmarked Balance with Bank 20.30 20.30
Bank Deposits with maturity more than 3 months
but less than 12 months * 6,000.00 26,721.27
Total (A) 6,020.30 26,741.57

Note 17: Loans - Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured (considered good)
Advance to Employees 536.33 401.98
Total 536.33 401.98

Note 18: Other Financial Assets- Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Unsecured (considered good)
Deposits 1,629.18 361.36
Unbilled Revenue 37,019.56 55,906.58
Claims Receivable 1,762.91 1,875.20
Accrued Income 5,125.97 4,966.22
Total 45,537.62 63,109.36

71 51st Annual Report 2017-18

Note 19: Other Current Assets Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
Unsecured (considered good)
Advance to Suppliers 8,036.06 4,351.22
Advance to Related Parties 502.44 231.54
Other Advances 658.26 638.95
Indirect Tax credits 12,703.59 6,873.35
Total 21,900.35 12,095.06

Note 20: Equity Shares

Particulars As at March 31, 2018 As at March 31, 2017
Authorized
Ordinary shares of par value of Rs. 1000/- each number 2,000,000 2,000,000
Amount in Lakhs 20,000.00 20,000.00

Issued, subscribed and fully paid

Ordinary shares of par value of Rs. 1000/- each number 1,633,712 1,633,712
Amount in Lakhs 16,337.12 16,337.12

Reconciliation of number of shares:

Particulars As at March 31, 2018 As at March 31, 2017
Equity Shares outstanding at the begining of the year 1,633,712 1,633,712
Add: - -
1. No. of Shares allotted as fully paid up bonus shares during the year
2. No. of Shares allotted during the year as fully paid up pursuant to - -
a contract without payment being received in cash shares
during the year
3. No. of Shares allotted to employees pursuant to ESOPs/ ESPs - -
4. No. of Shares allotted for cash pursuant to public issue.
Less:
1. No. of shares bought back during the year - -
Equity Shares outstanding at the end of the year 1,633,712 1,633,712

No. of Shares in the company held by shareholder holding more than 5 percent

Name of the Shareholder As at March 31, 2018 As at March 31, 2017

President of India * 1633712 1633712
Percentage of shares held 100% 100%
* Includes 3 Shares held by Nominees of Govt. of India

During the period of Five years immediately preceeding the reporting date:
Particulars As at March 31, 2018 As at March 31, 2017
1. Shares allotted for consideration other than cash - -
2. Shares allotted as bonus shares issued and - -
3. shares bought back - -

51st Annual Report 2017-18 72

Note 21: Other Equity Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
General Reserve
Opening Balance 2056.46 2056.46
Add: Transfer from Statement of P&L - -
Less: Adjustment of Depreciation - -
Closing Balance 2,056.46 2,056.46

Surplus in the Statement of Profit and Loss

Opening Balance 66,696.70 60,822.94
Add: Income for the year 3,780.39 5,776.09
Add: Restatement Adjustments - 1,892.01
Less: Dividend Paid (1,129.37) (1,490.84)
Dividend Tax paid (229.91) (303.50)
Closing Balance 69,117.81 66,696.70
Total 71,174.27 68,753.16

Note 22: Trade Payables- Non Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Dues to Micro, Small & Medium Enterprises - -
Other than Micro, Small & Medium Enterprises
i) Trade Payables 1,750.32 1,550.23
ii) Expenses Payable 1,449.51 3,815.75
Total 3,199.83 5,365.98

Note 23: Other Financial Liabilities - Non Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Deposits 151.22 273.72
Security Deposit 1,069.20 1,069.20
Creditors for Capital Goods 9,965.28 1,719.19
Others 2,182.16 1,701.60
Total 13,367.86 4,763.71

Note 24: Provisions -Non Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
For Employee Benefits
Leave Encashment 5,334.83 3,245.07
Pension 2,805.85 1,914.73
Warranty 2,721.10
Total 10,861.78 5,159.80

73 51st Annual Report 2017-18

Note 25: Other Liabilities Non Current Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
Advance Received from Customers 12,145.83 7,235.91
Government Grants-Yet to be Utilized 228.96 666.89
Government Grants-Deferred Income 1,428.87 402.79
Total 13,803.66 8,305.59

Note 26: Borrowings - Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
(i) Loans repayable on Demand
From Banks - -
Cash Credit -Secured - 1,792.65
Short Term Loans -Unsecured - 7,500.00
(ii) Other Loans from Banks
Over Draft against Fixed Deposits -Secured - 19,041.95
Total 28,334.60

The cash credit is secured by way of hypothecation of all chargeable current assets of the company including
raw material , stock in process, finished good, stores and spares and receivables both present and future and
first charge on moveable fixed assets of the company both present and future as collateral security .
a) The cash credits was availed from State bank of India as part of consortium facilities and is repayable on
demand carrying an interest rate of 8.25% p.a (previous year 8.35 % p.a).
b) The overdraft of Rs. Nil (previous year Rs.16791.95 lakhs) against fixed deposits from State Bank of India
and is repayable on the maturity carrying an interest rate of Nil p.a (previously 0.25% p.a) above the fixed
deposit interest rates.

Note 27: Trade Payables - Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Micro, Small & Medium Enterprises Payables 4,053.68 2,287.53
Other than Micro, Small & Medium Enterprises
i) Trade Payables 45,381.44 35,199.86
ii) Expenses Payable 44,150.50 39,308.22
Total 93,585.62 76,795.61

Note 28: Other Financial Liabilities - Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Deposits 1,023.17 749.46
Interest accrued and due on borrowings - -
Others 10,962.25 5,042.77
Total 11,985.42 5,792.23

51st Annual Report 2017-18 74

Note 29: Provisions -Current Rs. in lakhs
Particulars As at March 31, 2018 As at March 31, 2017
For Employee Benefits
Gratuity 6,223.21 1,759.08
Leave Encashment 2,379.47 2,960.78
Others
Warranty Provision 1,957.39 4,274.94
Total 10,560.07 8,994.80

Note 30: Other Liabilities Current Rs. in lakhs

Particulars As at March 31, 2018 As at March 31, 2017
Advance Received from Customers 97,655.37 81,012.98
Government Grants-Yet to be Utilized 6,202.28 3,014.52
Government Grants-Deferred Income 1,505.24 562.74
Total 105,362.89 84,590.24

Note 31: Revenue from Operations Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
Sale of Products 97,382.78 116,511.92
Sale of Services 30,093.93 28,074.31
127,476.71 144,586.23
Other Operating Revenue
a) Sale of Manuals 0.26 0.55
b) Customs Duty Realisations 1,326.20 3,227.96
c) Provisions no longer required 11,651.76 1,561.89
d) LD’s recovered from Vendors 273.36 355.28
Total 140,728.29 149,731.91

Note 32: Other Income Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
1. Interest On
a) Term Deposit Receipts 895.55 1,887.63
b) Others 1,677.56 2.54
2. Dividend From Joint Venture Company 18.38 18.38
3. Other Non-Operating Income
a) Rent 60.26 61.65
b) Unclaimed liabilities written back 15.72 5.39
c) Grants related Deferred Income 966.91 607.16
d) Miscellaneous 579.99 698.07
Total 4,214.37 3,280.82

75 51st Annual Report 2017-18

Note 33: Cost of Materials Consumed Rs. in lakhs
Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
1. Consumption of Raw Materials and Components
Opening Stock 13534.78 9541.32
Add: Purchases 97451.56 89040.87
Less: Closing Stock (24,021.20) (13,534.78)
86965.14 85047.41
Less: Grants-in-aid (1,316.08) (3,736.48)
85649.06 81310.93
2. Consumption of :
Stores and Spares 111.31 351.15
Packing materials 150.04 72.41
Tools 15.15 13.04
3. Cost of Accessories Consumed 549.70 453.14
Total 86475.26 82200.67

Note 34: Changes in Inventory of Finished Goods and WIP Rs. in lakhs
Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
CLOSING STOCKS
Finished Stock 10066.41 583.32
Work-in-Progress 17392.47 6687.88
Scrap 200.00 300.00
27658.88 7571.20
LESS: OPENING STOCKS
Finished Stock 583.32 940.74
Work-in-Progress 6687.88 8021.70
Scrap 300.00 55.00
7571.20 9017.44
Changes in Inventories Decretion/(Accretion) (20,087.68) 1446.24

Note 35: Employees’ Benefit Expenses Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
Salaries,Wages and Bonus 27840.97 24430.29
Contribution to Provident Fund including administrative charges 2462.64 2299.31
Provision for Pension 891.11 914.73
Provision for Gratuity 3,825.20 366.23
Welfare expenses 1455.29 1302.55
Total 36475.21 29313.11

51st Annual Report 2017-18 76

Note 36: Finance Cost Rs. in lakhs
Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
Interest Expenses 2015.90 2885.43
Other Borrowing Costs 8.14 12.06
TOTAL 2024.04 2897.49

Note 37: Depreciation and Amortization Expenses Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
Depreciation / Amortisation for the year
Depreciation on PPE 1736.56 1625.04
Depreciation on Grants related assets 966.91 607.16
Depreciation on Investment Property 2.89 2.89
Amortization of Intagible Assets 6.92 308.00
TOTAL 2713.28 2543.09

Note 38: Other Expenses Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
1. Power and Fuel 881.50 794.44
2. Water charges 617.68 743.24
3. Professional and Consultancy charges 1781.73 1511.78
4. Travelling and Conveyance expenses 1149.90 1200.03
5. Repairs & Maintenance
a) Buildings 290.20 510.34
b) Plant & Machinery 115.79 22.40
c) Others 324.05 476.48
6. Stores Incidentals-Inwards 5086.25 2561.80
7. Rents 250.62 239.11
8. Rates and Taxes 269.17 245.87
9. Insurance 103.41 114.70
10. Printing & Stationery 92.78 98.32
11. Postage, Telegram, Telephones & Telex 87.20 95.46
12. Advertisement 114.31 84.84
13. Guest House expenses 113.54 89.96
14. Entertainment expenses 6.08 13.57
15. Books and Periodicals 9.70 11.81
16. Vehicle expenses 290.74 259.23
17. Staff Training expenses 53.47 39.11
18. Security Expenses 1631.43 1503.25
19. Directors‘ fees and Travelling expenses 0.00 1.34

77 51st Annual Report 2017-18

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
20. Payment to Auditors
a) As Statutory Auditor 10.00 10.00
b) For Taxation Matters - -
c) For Compnay Law Matters - -
d) For Management Services - -
e) For Other Services 0.10 0.17
f) For Reimbursement of expenses 0.51 0.34
21. Loss/(Gain) on Exchange Rate Variation (Net) 497.17 (187.45)
22. Bank Charges 160.75 233.81
23. Commission on Bank Guarantees 99.71 113.18
24. Selling Expenses 297.84 389.24
25. Commission to Selling Agents 50.44 46.16
26. Freight Outwards 26.73 119.94
27. Expenditure on Warranty 998.08 1570.01
28. Liquidated Damages 7457.46 4525.99
29. Royalties 191.16 412.40
30. Research & Development expenses 1546.43 2212.18
31. Provisions:
Doubtful Advances 40.97 19.51
For Obsolete Stock 123.34 118.02
Doubtful Debts-S.Debtors 4912.56 3918.57
Others 926.75 -
32. Amounts Written off
a) Bad Debts written off 0.18 0.16
Less: Provisions withdrawn 0.00 -0.03
b) Fixed Assets written off 1.70 0.07
33. Corporate Social Responsibility 139.02 160.23
34. Transfer to other Accounts
a) Expenditure on Research & Development (1,546.43) (2,212.18)
b) Warranty charges (115.07) (501.48)
c) Departmental Transfers- Production (537.61) (392.35)
d) Service Tax Input Credit (565.18) (1,647.18)
e) Corporate Social Responsibility (23.44) -
f) Repairs & Maintenance (Internal) (105.77) (59.76)
g) Grants-in-Aid (Other than material) (1,163.33)
35. Donations 0.20 -
36. Miscellaneous expenses 487.94 629.94
Total 28345.09 18933.24

Note 39: Other Comprehensive Income Rs. in lakhs

Particulars For the Year ended For the Year ended
March 31, 2018 March 31, 2017
Remeasurement of Investment in APGPCL 58.71 197.67
Income tax thereon (20.51) (68.41)
Remeasurement of Define Benefit Plans-Actuarial Loss (2,339.41) (175.14)
Income Tax relating to these items 809.67 60.62
Total (1,491.54) 14.74

51st Annual Report 2017-18 78

NOTES TO FINANCIAL STATEMENTS 2017-18:

Note 40: Exemption from Disclosure

The Company has been exempted from disclosure of certain details mentioned below under Paragraph 5 of
Part II of Schedule III of the Companies Act 2013 under general instructions for preparation of Statement of
Profit and Loss as per the notification F.No:1/19/2013 -CL-V-Part dated 4th September 2015, issued by Ministry
of Corporate Affairs.
Para Particulars
5(ii)(a) In the case of manufacturing companies
5(ii)(a) 1 Raw materials under broad heads
5(ii)(a) 2 Goods purchased under broad heads
5(ii)(e) In case of other companies, gross income derived under broad heads
5(iii) In the case of all concerns having work in progress, works in progress under broad heads
5(viii) The statement of profit and loss shall also contain by way of a note the following information
namely :-
a) Value of imports calculated on CIF basis by the Company during the financial year in respect
of
I) Raw materials
II) Components and spare parts
III) Capital goods
b) Expenditure in foreign currency during the financial year on account of royalty, know how,
professional and consultation fees, interest and other matters.
c) Total value of all imported raw materials, spare parts and components consumed during
the financial year and the total value of all indigenous raw materials, spare parts and
components similarly consumed and the percentage of each to the total consumption.
e) Earnings in foreign exchange classified under the following heads, namely :-
I. Export of goods calculated on F.O.B. basis;
II. Royalty, know how, professional and consultation fees;
III. Interest and dividend;
IV. Other Income, indicating the nature thereof.

Note 41: Revenue

Government of India has introduced the Goods and Service Tax (GST) with effect from 01.07.2017. Accordingly,
Sale income was recognized including Excise duty up to 30.06.2017 and Sale income was recognized excluding
GST with effect from 01.07.2017. An amount of Rs. 596.86 Lakhs (previous year Rs.7270.90Lakhs) was included
in the Sale income for the year 2017-18 towards the levy of Excise duty.However, there is no impact on profit
for the year as a result of this change.

79 51st Annual Report 2017-18

Note 42: Information in Respect of Construction Contracts
a) In terms of Accounting Policy No.5 (iv), Contract Revenue of Rs.33782.94Lakhs (previous year Rs.43786.52
Lakhs) is recognized based on the percentage of actual costs incurred to the estimated total cost of the
Contracts. (Rs. in Lakhs)
Particulars As at As at
March 31, 2018 March 31, 2017
b) Aggregate amount of costs incurred and recognized 203681.70 206610.12
profits (Less: recognized losses)
c) Advances received and outstanding 24462.60 31846.01
d) Gross amount due from customers (Unbilled Revenue) 47601.23 69408.41
e) Gross amount due to customers Nil Nil
f) Retentions, if any 4034.48 4974.20
The estimates of total costs and total revenue in respect of construction contracts are reviewed and updated
periodically and necessary adjustments are made in the current year’s account. The contracts undertaken by
the company are large in number and the total estimated cost of contracts undergoes a change on account of
change in estimates as well as due to change in scope of work. Hence, it is impracticable to specify the nature
and quantify the amount of change in the accounting estimates made while recognizing the revenue from
contracts with respect to Ind AS 11.

Note 43: Income Tax

A reconciliation of the Income Tax provision to the amount computed by applying the statutory income tax rate
to the profit before tax is summarized as follows: (Rs.in Lakhs)
Particulars As at As at
March 31, 2018 March 31, 2017
Profit before tax 8400.60 8407.99
Enacted Tax rates for the financial year 34.61% 34.61%
Expected tax expense (A) 2907.44 2910.00
Tax affect on allowable items (B) (6282.98) (2981.18)
Tax affect on disallowable items (C) 3891.33 3288.83
Tax affect of OCI - Gratuity items (D) 809.67 0.00
Tax on incomes chargeable under other heads (E) 24.21 22.97
Provision for income tax for the current year (A+B+C+D+E) 1349.67 3240.62
Interest on income tax for the year 0 100.00
Current tax for the year 1349.67 3340.62
Tax credits allowable 0.00 0.00
Deferred tax for the yearexcluding OCI Items 1768.57 -548.04
Tax expense of earlier years adjusted 10.42 -145.94
Net tax expense for the year 3128.66 2646.64
Deferred Tax for the year on OCI Items 20.51 68.41
Total deferred tax affect for the year 1789.08 -479.63

51st Annual Report 2017-18 80

Note 44: Employee Benefits
a) Provident Fund: Company pays fixed contribution to provident fund at predetermined rates to a separate
trust ECIL Employees Provident Fund, which invests the funds in permitted securities. Contribution to
family (Employees)pension scheme is paid to the appropriate authorities. The contribution of Rs.2462.64
Lakhs (Previous year Rs. 2299.31 Lakhs) including administrative charges is recognized as expense and is
charged in the Statement of Profit and Loss. The obligation of the Company is to make such fixed contribution
and to ensure a minimum rate of return as specified by GOI to the members. The overall interest earnings
and cumulative surplus is more than the statutory interest payment requirement during the year.
b) Gratuity: Gratuity is a funded Defined Benefit Plan payable to the qualifying employees on separation. It is
managed by a separate trust, ECIL Employees Gratuity Fund through ‘Employees Group Gratuity cum Life
Assurance Scheme’ of the Life Insurance Corporation of India.
Company makes annual contribution to the Fund based on the present value of the Defined Benefit obligation
and the related current service costs which are measured on actuarial valuation carried out as on Balance
Sheet date. The liability has been assessed using Projected Unit Credit (PUC) Actuarial Cost Method.
Reconciliation of opening and closing balances of the present value of the defined benefit obligation as at the
year ended March 31, 2018 are as follows.
(Rs.in Lakhs)
I. Change in Benefit obligation As at As at
March 31, 2018 March 31, 2017
Present value of obligation as at the beginning 10942.29 12257.71
a) Interest Cost 779.36 980.61
b) Current Service Cost 396.32 144.91
c) Past Service Cost 3362.28 -
d) Benefits paid 2400.55 2617.88
e) Actuarial (gain) / loss 2288.23 176.94
Present value of obligation at the end of the period 15367.94 10942.29

(Rs. in Lakhs)
II. Change in Fair value of plan assets As at As at
March 31, 2018 March 31, 2017
Fair value of Plan Assets at the beginning of the year 9237.04 9889.65
a) Expected return on plan assets 710.96 761.10
b) Contributions 1700.48 1202.38
c) Benefits paid 2400.55 2617.88
d) Actuarial (gain)/loss on plan assets (51.18) 1.80
Fair value of Plan Assets at the end of the period 9196.76 9237.04
Excess of Obligation over Plan Assets 6171.18 1705.25

81 51st Annual Report 2017-18

 (Rs. in Lakhs)
III. Expenses recognized in the Statement of Profit & Loss For the year ended For the year ended
March 31, 2018 March 31, 2017
a) Total service Cost 3758.60 144.91
b) Interest Cost 779.36 980.62
c) Expected return on Plan Assets 710.96 761.10
d) Net Actuarial (gain)/loss recognized in the period 2339.41 176.94
Expenses recognized in the statement of Profit & Loss 6166.41 541.37

(Rs. in Lakhs)
IV. Amounts recognized in the Balance Sheet As at As at
March 31, 2018 March 31, 2017
a) Present value of Obligation as at the end of the period 15367.94 10942.29
b) Fair value of Plan Assets at the end of the period 9196.76 9235.24
c) Funded Status (6171.18) (1707.05)
d) Liability recognized in Balance Sheet ** 6223.21 1759.08
** The above amount includes Rs.52.03 Lakhs (previous year Rs. 52.03 Lakhs) towards gratuity payable
to ex-employees which is not claimed by them as at 31-3-2018.

V. Major Category of plan assets

Not applicable as the funds were invested through Fund Manager, Central Office, Investment Department of
Life Insurance Corporation of India.

VI. Principal Assumptions As at As at

March 31, 2018 March 31, 2017
a) Discounting Rate 8% 8%
b) Salary Escalation Rate 6% 6%

The Government of India enhanced the ceiling limit for payment of gratuity from Rs.10 Lakhs to Rs.20 Lakhs
with effect from 29/03/2018 and accordingly same fact has been considered while valuing the acturial valuation
as at the end of 31/03/2018.

The estimates of future salary increase considered in actuarial valuation, have been factored in inflation, seniority,
promotion and other relevant factors.

c) Leave Encashment
Earned Leave/Vocation Leave can be encashed to a maximum of 50% of the leave at the credit of the
employee subject to the condition that the leave encashed at a time shall not be less than 10 days and
shall not be more than 54 in case of Earned Leave, 90 days in case of Vocation Leave. However, employees

51st Annual Report 2017-18 82

 are entitled to a maximum of 180 / 300 days towards the terminal benefits on superannuation/ VR/
Resignation/Termination. The scheme is unfunded and liability is recognized on the basis of actuarial
valuation. An amount of Rs. 3273.97Lakhs (previous year Rs.1000.88 Lakhs) has been provided during the
year 2017-18 to keep the leave encashment liability as per the actuarial valuation at Rs.7714.30Lakhs
(previous year Rs. 6205.85 Lakhs).
The actuarial assumption for salary rise is 6 % (Previous Year 6%) and discount rate is 8% (Previous
Year 8%).
d) Pension
As per the guidelines issued by Department of Public Enterprises, Government of India, the Company is
allowed to extend upto 30% of the basic pay plus dearness pay as Superannuation benefits including
contributory provident fund, gratuity etc., In compliance with the said DPE guidelines issued for pay revision
of executives, a provision towards pension for executives is made for Rs.891.11 Lakhs during the Financial
Year 2017-18 (Previous year Rs.914.73 Lakhs).
e) Pay/Wage Revision for Employees
Pay/Wage Revision to the employees is due from 01.01.2017. Accordingly, the Board of Directors of the
Company had approved for implementation of the Pay Revision to the Executives with effect from
01.01.2017 in line with the guidelines issued by Department of Public Enterprises in this regard. An amount
of Rs.2691.44 Lakhs has been provided during the year 2017-18 towards the Pay Revision arrears payable
to Executives for the period 01.01.2017 to 31.03.2018.

Note 45: Government Grants

Unspent balance of Rs.5694.09 Lakhs as on March 31, 2018 (previous year Rs. 3386.58Lakhs) out of Grants-in-
Aid received from Bhabha Atomic Research Center (BARC) under XII Five Year Plan for facility creation and
Grants received from Government of India (GOI) for undertaking various Research & Development Projects is
included under “Other Current Liabilities” in the Balance Sheet.
(Rs. in Lakhs)
S Particulars For the year ended For the year ended
No. March 31, 2018 March 31, 2017
Grants
1 Opening Balance 3386.58 3146.89
2 Total receipts during the year 6803.62 2481.14
3 Adjustments 29.51 0.00
4 Utilized during the year towards
a) Revenue Items 1316.08 1911.85
b) Capital Items 2935.50 329.60
5 Closing balance 5968.14 3386.58

83 51st Annual Report 2017-18

Note 46: Related Party Disclosures
i) Remuneration to Key Management Personnel – Rs.80.82 Lakhs (Previous year Rs.126.08Lakhs) as detailed
below:
(Rs. in Lakhs)
Name of the Key Position Held Salary Contribution Pension and Total
Management Personnel to PF other benefits

Shri Debashis Das, Chairman & Managing Director * - - - -

Shri P. Sudhakar Chairman &

Managing Director (14.63) (1.54) (32.07) (48.24)
Upto 31.10.2016

Shri Kishor Rungta Director (Finance) 25.51 2.70 9.02 37.23

(24.39) (2.57) (5.71) (32.67)

Shri V S B Babu Director (Personnel) 25.50 2.70 5.93 34.13

(24.27) (2.56) (3.95) (30.78)

Shri Jai Bhagwan Sharma Company Secretary 4.46 0.47 0.59 5.52
(11.53) (1.21) (1.65) (14.40)

Shri Ashish Kumar Srivastava Company Secretary 2.32 0.25 0.32 2.89
(-) (-) (-) (-)

Shri MSRS Prasad Company Secretary 0.85 0.09 0.11 1.05

(-) (-) (-) (-)

Grand Total 58.64 6.21 15.97 80.82

(74.81) (7.88) (43.38) (126.08)

* Shri Debashis Das was given Additional Charge as Chairman & Managing Director and Director (Technical) of
ECIL with effect from November 01, 2016 and his remuneration is being drawn from BARC.
ii) The Company has 49% stake in the equity share capital of M/s ECIL-Rapiscan Limited, incorporated as joint
venture with OS Inc.USA.
Details of transactions, other than Joint Venture activities between ECIL and ECIL Rapiscan Limited are as
under:
(Rs. in Lakhs)
Particulars For the year ended For the year ended
March 31, 2018 March 31, 2017
Purchase of Goods during the year Nil 56.86
Sale of Goods during the year Nil Nil
Services rendered during the year Nil Nil
Services received during the year 1531.91 229.02
Advances outstanding 501.54 231.54
Amounts payable 1059.09 327.29
Amounts receivable 11.43 11.43

51st Annual Report 2017-18 84

As the envisaged economic activity of the Joint Venture has ceased to exist due to obsolescence of the technology,
the proposal for dissolution of the Joint venture company has been proposed by the Joint Venture partner M/
s. OSI Systems Inc. USA.

The Board of Directors has decided to appoint a Financial Institution for conducting Financial Due Diligence of
the Joint Venture. M/s ECIL Rapiscan Limited has appointed IDBI Capital Markets Ltd as valuer of Joint Venture.
Based on the valuation report, M/s OSI Systems Inc. has proposed an offer to take over 49% ECIL Share in the
Joint Venture. The Board of ECIL is yet to take a decision in this regard. Further, presently no products are being
manufactured and sold by ECIL to the Joint Venture Company as a part of JV agreement.

Note 47: Earnings per Share

(a) Earnings per share is calculated as shown below:
Particulars For the year ended For the year ended
March 31, 2018 March 31, 2017
Numerator : 5271.93 Lakhs Rs.5761.35 Lakhs
Net Profit after tax as per Statement of Profit and Loss
Denominator : 1633712 Nos 1633712 Nos
Number of equity shares
Number of equity shares allotted during the year NIL NIL
Weighted average number of equity shares for calculation 1633712 Nos 1633712 Nos
of earnings per share (Basic & Diluted)
Nominal value of equity share Rs. 1000/- Rs. 1000/-
Earnings per share (Basic & Diluted) Rs.322.70 Rs.352.65

(b) Dividend: The Board of Directors have recommended a dividend at Rs.80.67Per share ofRs.1000 amounting
to Rs.1317.98 Lakhs for the year 2017-18 excluding dividend distributiontax.

Note 48: Provisions

(a) Provision is made for warranty expenditure at 0.5% on product sales and at 2% on revenue recognized on
Construction contracts under Ind AS-7, the details of provisions made are as under: (Rs.in Lakhs)
Particulars As at March 31, 2018 As at March 31, 2017
On product On contracts On product On contracts
sales under Ind sales under Ind
AS-11 AS-11
Opening Balance 929.46 3345.82 624.41 2962.44
Provisions made during the year 314.86 663.49 536.46 1028.16
Amounts used / reversed (i.e, incurred and 257.04 317.76 231.41 644.78
charged against provision)
Closing balance 987.27 3691.22 929.46 3345.82

85 51st Annual Report 2017-18

Note 49: Investment Property
The Company is not holding any assets which qualifies the definition of Investment property as there is no
intension to earn rentals or for capital appreciation. However, some properties are earning rental income due
to administrative reasons; those assets are shown separately in the investment property schedule. The
measurement of the property is considered at cost.
The amounts recognized in Profit or Loss for
I. Rental income Rs.60.26 Lakhs
II. Direct Operating expenses arising from Investment Property that generated rental income during the
period - Nil
III. Direct Operating expenses arising from Investment Property that did not generate rental income during
the period - Nil
IV. Restrictions in the realisability on Investment property or the remittance of income and proceeds of
disposal - Nil
V. Contractual obligations to purchase, construct or develop investment property or for repairs, maintenance
and enhancements - Nil

Note 50: Contingent Liabilities

(a) Contingent Liabilities and Capital Commitments (Rs. in Lakhs)
S. Particulars As at As at
No. March 31,2018 March 31,2017
i) Contingent Liabilities
(to the extent not provided for)
a) Claims against the company not acknowledged as debt
(i) Court/Arbitration cases 6495.89 2320.56
(ii) Demands from Government authorities and 45380.16 42939.32
appeals filed against the Company not provided
for in respect of taxation matters
b) Others
i) Letters of Credit 6730.08 9090.46
ii) Indemnity Bonds 103829.00 26269.89
iii) Corporate Guarantees 29051.29 23109.93
iv) Others 1760.11 1688.19
c) No provision is considered necessary in respect of the differential sales tax liability of Rs.243.36Lakhs
estimated at next higher rate of tax that may devolve on the Company for non-receipt & submission of
statutory forms in respect of pending assessments for the years 2015-16 to 2017-18 (previous year Rs.
568.14 Lakhs), as the company is confident of collecting the statutory forms from the customers for
onward submission to Commercial tax department.
d) The Company has no hedging arrangements with the banks for payment of foreign currency transactions
during the year.
e) There exists no liability whether crystallized or contingent as on 31.03.2018 in terms of the Civil Liability
for Nuclear Damage Act, 2010.

51st Annual Report 2017-18 86

ii) Commitments: (Rs. in Lakhs)
Particulars As at As at
March 31,2018 March 31,2017
(a) Estimated amount of contracts remaining to be executed 2808.82 2136.89
on capital account and not provided for (net of advances)
(b) Other commitments Nil Nil

Note 51: Intangible Assets

The expenditure incurred on Enterprise Resource Planning towards the licences and implementation pending
Go-Live of the Project was kept under “Intangible Assets under Development” in the year 2013-14. Since, the
expected progress as envisaged was not achieved, the expenditure may become infructuous, and accordingly,
provision was created in the books of accounts during the year 2017-18 towards the probable losses.

Note 52: Operating Segments

The Company is engaged mainly in Electronic Products and Services catering to the needs of Government and
Government Agencies in Strategic Sectors. The Company considers such information is of confidential nature.
Hence no separate disclosures were made.

Note 53: Financial Instruments - Fair Values and Risk Management

Fair Value Measurements:
Financial Instruments by Categories, its carrying value and Fair value:
(Rs. in Lakhs)
As at March, 2018
Particulars Amortized FVTPL FVTOCI Carrying Total fair value as
cost value of March 31, 2018
Assets:
Investments in Equity Instruments 3821.26 3821.26 3821.26
Cash & Cash Equivalents 2579.00 2579.00 2579.00
Bank Balances 6020.30 6020.30 6020.30
Trade Receivable 169900.74 169900.74 169900.74
Loans 536.33 536.33 536.33
Other Financial Assets 59054.99 59054.99 59054.99
Liabilities:
Trade Payable 96785.45 96785.45 96785.45
Borrowings - - -
Other Financial Liabilities 25353.28 25353.28 25353.28

87 51st Annual Report 2017-18

 (Rs. in Lakhs)
As at March, 2017
Particulars Amortized FVTPL FVTOCI Carrying Total fair value as
cost value of March 31, 2017
Assets:
Investments in Equity Instruments 3762.55 3762.55 3762.55
Cash & Cash Equivalents 526.37 - - 526.37 526.37
Bank Balances 26,741.57 - - 26,741.57 26,741.57
Trade Receivable 137369.81 - - 137369.81 137369.81
Loans 401.98 - - 401.98 401.98
Other Financial Assets 78974.02 - - 78974.02 78974.02
Liabilities:
Trade Payable 82161.59 - - 82161.59 82161.59
Borrowings 28,334.60 - - 28,334.60 28,334.60
Other Financial Liabilities 10555.94 - - 10555.94 10555.94

The carrying amounts of above Financial Assets and Liabilities are considered to be same (except in case of
investments) as their fair values due to the nature of the contractual obligations.

Fair Value Hierarchy

Management considers that, the carrying amount of those financial assets and financial liabilities that are not
subsequently measured at fair value in the Financial Statements approximate their transaction value. No financial
instruments are recognized and measured at fair value for which fair values are determined using the judgments
and estimates. The fair value of Financial Instruments referred below has been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted
prices in active market for identical assets or liabilities. (Level-1 measurements) and lowest priority to
unobservable (Level-3 measurements). The categories used are as follows:
• Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices (unadjusted)
in active markets.
• Level 2 - Level 2 hierarchy includes financial instruments measured using inputs other than quoted
prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
• Level 3 - Level 3 hierarchy includes financial instruments measured using inputs that are not based on
observable market data (unobservable inputs).

51st Annual Report 2017-18 88

The following table presents fair value hierarchy as at March 31, 2018:
(Rs. in Lakhs)
Particulars As at March Fair value measurement at end of the reporting period/year
31, 2018
Level 1 Level 2 Level 3
Financial Assets
Investment in Equity 3821.26 - - 3821.26
Instruments

The following table presents fair value hierarchy as at March 31, 2017:
(Rs. in Lakhs)
Particulars As at March Fair value measurement at end of the reporting period/year
31, 2017
Level 1 Level 2 Level 3
Financial Assets
Investment in Equity 3762.55 - - 3762.55
Instruments

Valuation Process
For Level-3 financial instruments, the fair values have been determined by applying the Net Book value
method.
The carrying amounts of receivables, payables and cash and cash equivalents are considered to be same as
their fair value due to their contractual obligations.
For Financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair
values.

Financial Risk Management

The Company’s activities expose to a variety of financial risks viz., marketrisk, credit risk and liquidity risk. The
Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The primary marketrisk to the Company is credit risk and liquidity risk. The
Company’s exposure to credit risk is influenced mainly by, dealings with Government and Government agencies
being the top customers.
a. Management of Market Risk
Market risks comprises of Price risk and Interest rate risk. The Company does not designate any fixed rate
financial assets as fair value through Profit and Loss nor at fair value through OCI. Therefore, the Company
is not exposed to any interest rate risk. Similarly, the Company does not have any Financial Instrument
which is exposed to change in price.
b. Foreign Currency Risks
The Company is exposed to foreign exchange risk arising from various Currency exposures primarily with
respect to the US Dollars (USD), Euro (EUR) and other foreign currencies for the imports being made by
the Company for execution of its contracts.

89 51st Annual Report 2017-18

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on
March 31, 2018 is as follows:
(Rs. in Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings - - - -
Trade Payables 10351.71 1552.95 52.88 11957.54
Other Liabilities
Less: Currency Forwards
Net Exposure to foreign currency risk (liabilities) 10351.71 1552.95 52.88 11957.54

Increase/ (Decrease) to profit before tax for changes of 5% against INR:

(Rs. in Lakhs)
Strengthened -517.58 -77.65 -2.64 -597.87
Weakened 517.58 77.65 2.64 597.87

The Company exposure to foreign currency risk as at the end of the reporting period expressed in INR as on
March 31, 2017 is as follows:
(Rs. in Lakhs)
Particulars US Dollars Euro Other Total
Currencies
Financial Assets :
Trade Receivable - - - -
Financial Liabilities :
Long Term Borrowings
Trade Payables 2,590.36 3,040.92 157.90 5,789.19
Other Liabilities
Less: Currency Forwards
Net Exposure to foreign currency risk (liabilities) 2,590.36 3,040.92 157.90 5,789.19

Increase/(Decrease) to profit before tax for changes of 5% against INR :

(Rs. in Lakhs)
Strengthened -129.52 -152.04 -7.90 -289.46
Weakened 129.52 152.04 7.90 289.46

51st Annual Report 2017-18 90

c. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or a counter party fails to meet its
contractual obligations. The maximum exposure to the credit risk at the reporting date is primarily from
trade receivables.
As all the trade receivables are from Government and Government agencies, they are considered as credit
worthy upto to the period of three years past due excluding the current year. Subsequently, they are
considered credit impaired, unless the amount is considered receivable. If the recoverability is considered
doubtful based on the review, the required allowance for impairment is being provided in the books. In
respect of liquidated damages, the allowance for impairment is being provided as per the contractual
terms.
The company considers that, all the financial assets that are not impaired and past due as on each reporting
dates under review are considered credit worthy.
Credit risk exposure
An analysis of age-wise trade receivables at each reporting date is summarized as follows:

For the year ended March 31, 2018: (Rs. in Lakhs)

Particulars Less than Between More than Total Rs.
1 year 2 to 4 years 4 Years
Gross Carrying amount 93218.90 62953.93 38505.65 194678.48
Expected credit loss (Loss allowance provision) 4380.48 9171.71 11225.55 24777.74
Carrying amount (net of impairment) 88838.42 53782.22 27280.10 169900.74

For the year ended March 31, 2017:

Particulars Less than Between More than Total Rs.
1 year 2 to 4 years 4 Years
Gross Carrying amount 57537.01 71229.04 33722.97 162489.02
Expected credit loss (Loss allowance provision) 4530.38 7269.96 13319.07 25119.41
Carrying amount (net of impairment) 53006.63 63959.08 20403.90 137369.61

d. Liquidity Risk
The company‘s liquidity needs are monitored on the basis of monthly projections. The principal sources of
liquidity are cash and cash equivalents, cash generated from operations and availability of cash credit and
overdraft facilities to meet the obligations as and when due.
Short term liquidity requirements consist mainly of sundry creditors, expenses payable and employee
dues during the normal course of business. The company maintains sufficient balance in cash and cash
equivalents and working capital facilities to meet the short term liquidity requirements.
The company assesses long term liquidity requirements on a periodical basis and manages them through
internal accruals and committed credit lines.
The following table shows the maturity analysis of the Companies Financial Liabilities based on contractually
agreed, undiscounted cash flows as at the balance sheet date.

91 51st Annual Report 2017-18

 (Rs.in Lakhs)
Particulars Carrying <12 months >12 months Total
amount
As on March 2018
Trade Payables 96785.45 93585.62 3199.83 96785.45
Other Financial Liabilities 25353.28 11985.42 13367.86 25353.28

As on March 31, 2017

Trade Payables 82161.59 76,795.61 5,365.98 82161.59
Other Financial Liabilities 10555.94 5,792.23 4,763.71 10555.94

Note 54: Corporate Social Responsibility (CSR)

As per Section 135 of the Companies Act, 2013 and rules made there under on CSR Activities, the Company has
incurred an amount of Rs.139.02Lakhs (Previous year Rs.160.23 Lakhs) towards Corporate Social Responsibility
activities during the Financial Year 2017-18 and debited to Statement of Profit and Loss.
The amount of expenditure to be spent on CSR activities and financial details as per the Companies Act, 2013
for the F.Y 2017-18 are as under:
(Rs. in Lakhs)
S. Particulars As at As at
No March 31,2018 March 31,2017
1 Aggregate net profits of last three financial years 23034.46 21615.94
as per Section 198 of the Companies Act, 2013
2 Average of net profits 7678.15 7205.31
3 Earmarked percentage U/s 135 of the 2% 2%
Companies Act, 2013 towards CSR Activities
4 Amount to be spent towards CSR Activities 153.56 144.11
for the F.Y 2017-18
5 Amount actually incurred on CSR Activities 139.02 160.23
during F.Y 2017-18

As per Paragraph 17(b) of the Guidance Note on CSR issued by ICAI, the details of expenditure incurred by the
Company on CSR activities are as follows:
(Rs.in Lakhs)
S.No Particulars In Cash Yet to be paid in Cash Total
(i) Construction/Acquisition of asset 27.72 15.46 43.18
(33.74) (13.71) (47.45)
(ii) Other than (i) above: 95.84 - 95.84
(112.31) (0.47) (112.78)

51st Annual Report 2017-18 92

Note 55: Others
i. The disclosure relating to transactions with Micro, Small and Medium Enterprises are given below:
(Rs. in Lakhs)
S. Particulars As at As at
No March 31,2018 March 31,2017

a) The principal amount and the interest due thereon (to be shown separately)
remaining unpaid to any supplier at the end of the each accounting year.
(i) Principal 4053.68 8.14
(ii) Interest 2287.53 12.06
b) The amount of interest paid by the buyer in terms of Section 16 of the Nil Nil
Micro, Small and Medium Enterprises Development Act, 2006, along with
the amount of the payment made to the supplier beyond the appointed
day during each accounting year.
c) The amount of interest due and payable for the period of delay in making Nil Nil
payment (which have been paid but beyond the appointed day during
the year) but without adding the interest specified under the Micro, Small
and Medium Enterprises Development Act, 2006
d) The amount of interest accrued and remaining unpaid at the end of each Nil Nil
accounting year and
e) The amount of further interest remaining due and payable even in the 8.14 12.06
succeeding years, until such date when the interest dues above are actually
paid to the small enterprise, for the purpose of disallowance of a
deductible expenditure under Section 23 of the Micro, Small, Medium
enterprises Development Act, 2006.

ii. Materials received pending inspection and acceptance and materials dispatched by vendors for which
title has been transferred to the company as per the terms of the contract which are in transit are considered
as Raw materials-in-transit or Capital goods-in-transit as the case may be and included in Inventories and
Capital work-in-progress respectively.
iii. Inventories include material with sub contractors amounting to Rs.7.90 Lakhs (previous year Rs.3.63 Lakhs)
and finished goods amounting to Rs. NilLakhs (previous year Rs.0.14 Lakhs) sent on demonstration/
exhibition /approval.
iv. In respect of Instruments and Systems Group, the company has made a cumulative provision of Rs.10000
Lakhs towards doubtful debts as at the end of 31.03.2017 for the debts under litigation. As all the appeals
are before the same appellate authority, a few of the appeals are heard and Orders were given in favor of
ECIL and started realizing the debts, the provision has been withdrawn during the year 2017-18 as the
debt is no longer doubtful.
v. Two MCV and one MCP against the order of M/s. Bharat Dynamics Limited on which sale was recognized
has been retained in the premises of the Company for more than 10 years at the request of the customer
and an amount of Rs. 23.94 Lakhs is due from the customer.
Vi. The Company requested its debtors and creditors to confirm the balances as at the end of half year in
respect of trade payables, trade receivables and advances directly to the Statutory Auditors.
vii. Previous year’s figures have been regrouped/reclassified/recasted wherever necessary to confirm to the
current year’s presentation.
***

93 51st Annual Report 2017-18

 ECIL receiving Rajbhasha Shield for 2016-17 from Shri V. Uday Bhaskar, Chairman, TOLIC and C&MD, BDL
for outstanding implementation of Official Language Policy

ECIL entering into Transfer of Technology Agreement for Manufacture of Ku Band Feed Systems with
Space Application Centre (SAC) of ISRO

51st Annual Report 2017-18 94

ECIL encouraging School Children to take up Sports and distributing Archery material as part of
Corporate Social Responsibility Program

ECIL distributing School Bags to Children as part of Corporate Responsibility Program

95 51st Annual Report 2017-18

 ANNEXURE - ‘E’
INDEPENDENT AUDITORS’ REPORT
To
The Members
Electronics Corporation of India Limited
Hyderabad

Report on the Financial Statements

We have audited the accompanying financial statements of Electronics Corporation of India Limited (ECIL),
(“the company”), Hyderabad, which comprise the Balance Sheet as at 31st March, 2018, the Statement of
Profit & Loss (including other comprehensive income), the Cash Flow Statement and Statement of Changes
in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory
information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including Indian Accounting Standards
(Ind AS) specified under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds
and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for ensuring the accuracy and completeness of
the accounting records, relevant to the preparation and presentation of the Ind AS financial statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters
which are required to be included in the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of
the Act. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the Ind AS financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal financial control relevant to the
Company’s preparation of the Ind AS financial statements that give a true and fair view in order to design

51st Annual Report 2017-18 96

audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting estimates made
by Company’s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Ind AS financial statements.

Basis for Qualified Opinion

The balances appearing under Trade Receivables, Sundry Creditors, Advances paid and Advances received
include certain amounts which are long outstanding. Pending confirmations, reconciliations and consequent
adjustments, if any, of such balances, the impact of the same on the Statement of Profit and Loss and
Balance Sheet, is not quantifiable.

Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for
the effects of the matter described in the ‘Basis for Qualified Opinion’ paragraph, the aforesaid financial
statements give the information required by the Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of
affairs of the Company as at 31st March, 2018 and its financial performance including other comprehensive
income, its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matters
a) We draw attention to the matter in the Note No 2A to the financial statements regarding immovable
properties title whereof are not yet conveyed in favour of the company.
b) We draw attention to the Note No 55(iv) to the Notes to account regarding Withdrawl of Provisions
for debts under litigation – Rs.100 Cr which describes the circumstances under which the provision
for doubtful debts is withdrawn basing on the appeals adjudged in favour of the company.
Our opinion is not qualified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Government
of India in terms of Section 143(11) of the Act, we give in the Annexure-A a statement on the matters
specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(5) of the Act, with regard to the directions issued by the Comptroller and
Auditor General of India, we report that:
a) According to the information available and explanations given to us and on the basis of our
examination of the records, the company has clear title in respect of freehold and leasehold lands
except in the following cases.
I. Freehold Lands:
1. (a) The Department of Atomic Energy (DAE) has made Deed of Grant in favour of the
company granting Acres 278-05 Guntas of land free of cost in Keesara and Uppal Mandal
Medhcal District. Out of the grant of Acres 278-05 Guntas, the company was conveyed
Acres 229-01 Guntas and the same were mutated in favour of the company in the revenue
records.

97 51st Annual Report 2017-18

 (b) Out of grant of Acres 278-05 Guntas DAE has identified Acres 31-10 Guntas of lands in S.
Nos. 223/7, 288, 711 and 24. However the land is yet to be transferred and mutated in
the revenue records in favour of the company. The company is in possession of this
land.
(c) Out of grant of Acres 278-05 Guntas balance Acres 17-34 Guntas of land is neither
identified nor mutated in favour of the company.
(d) The company is in excess possession of Acres 20-30 Guntas of land under Survey No.223/
09, 223/10, 223/13 in Kapra Village, Keesara Mandal, Rangareddy District. This land was
transferred by State Government to DAE. However, the land is not yet conveyed in favour
of the company.
2. The company has purchased Acres 2-11 Guntas of land at Moula-Ali, Hyderabad from Andhra
Pradesh Industrial Infrastructure Corporation Ltd (APIIC). APIIC agreed for exchange of this
land with a land admeasuring Acres 2-65 Guntas in Moula-Ali. In the process the company
will have title for an additional land of Acres 0-533 Guntas for which the company has paid
additional consideration of Rs 1,65,103/-. Conveyance in respect of exchange properties in
favour of the company from APIIC is not yet completed.
3. The DAE vide letter No.5/10(5)/2000-PSU/Vol.III/61, dated 10.01.2002 conveyed the approval
of the President of India for transfer of ownership of land admeasuring 2773.50 Sq. yards
and Buildings for its office situated at Prabhadevi, Mumbai free of cost to the company. The
mutation of the property is not yet completed.
II. Leasehold Lands:
The company has clear title in respect of Leasehold lands.
b) During the year the company has not written of any debt, loan, interest and other amounts.
During the year the company has not waived any debts, loan, interest or other amount.
c) The company has maintained proper records in respect of inventories lying with third parties and
assets received as gift or grants from Government or other authorities.
3. 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 best of
our knowledge and belief were necessary for the purposes of our audit, except for the
effects of the matter described in the Basis of Qualified Opinion paragraph;
b) Except for the possible effects of the matter described in the Basis for Qualified Opinion
paragraph above, in our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those books;
c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and the
Statement of Changes in equity dealt with by this Report are in agreement with the
books of account and with the Returns received from Branches not visited by us;
d) Except for the possible effects of the matter described in the Basis for Qualified Opinion
paragraph, in our opinion, the aforesaid financial statements comply with the Ind AS
specified under Section 133 of the Act.

51st Annual Report 2017-18 98

 e) Being a Government Company, the company is exempted from the provisions of Section
164 (2) of the Act regarding disqualification of Directors vide Notification GSR-463(E),
dated 5th June, 2015 issued by the Government of India, Ministry of Corporate Affairs;
f) We give our report in Annexure –B with respect to the adequacy of internal financial
controls over financial reporting of the company and the operating effectiveness of such
controls;
g) With respect to the other matters to be included in the Auditor’s Report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules 2014, in our opinion and to
the best of our information and according to the explanations give to us:
i. The Company has disclosed the impact of pending litigations on its financial position
in its financial statements – Refer Note No. 50 (a) to the financial statements;
ii. The Company has made provision, as required under the applicable law and
accounting standards, for material foreseeable losses, on long term contracts –
Refer Notes 22, 24 and 29. The company doest not have derivative contracts.
iii. There are no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration No.2934S

CA L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 4th August, 2018

99 51st Annual Report 2017-18

 Annexure - ’A’ to the Independent Auditors’ Report
The annexure referred to in the Independent Auditors’ Report of even date to the Members
of Electronics Corporation of India Limited (ECIL) (“the Company”), on the Financial
Statements for the year ended 31st March, 2018, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details
and situation of fixed assets.
(b) According to the information and explanations given to us and on the basis of our examination of
the records of the company, the Company has a phased programme of physical verification of its
Fixed Assets once in three years and accordingly external agencies have carried out physical
verification during the year. In our opinion, the periodicity of physical verification is reasonable
having regard to the size of the Company and the nature of its fixed assets. No material discrepancies
were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of
the records of the company, we state that the title deeds of immovable properties are held in the
name of the company except as specified in Note No. 2A to the financial statements.
(ii) Physical verification of inventories except goods-in-transit and stock lying with third parties, has been
conducted during the year by the in-house Internal Audit Department. In our opinion the frequency of
verification is reasonable. The discrepancies noticed on verification between the physical stocks and
book records were not material and they have been properly dealt with in the books of account.
(iii) During the year the company has not granted any loans secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of the Act.
(iv) During the year company has not given any loans, made investments, given guarantees or given security
to Directors, companies other parties covered under provisions of section 185 and 186 of the Act.
Accordingly paragraph 3(iv) of the Order is not applicable.
(v) During the year the Company has not accepted any deposits from the public. Accordingly paragraph
3(v) of the Order is not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules
prescribed by the Government of India for maintenance of cost records under section 148(1) of the
Act and are of the opinion that prima facie, the prescribed accounts and records have been made and
maintained. However, we have not made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, amounts deducted/accrued in the books of account in respect of
undisputed applicable statutory dues including provident fund, income tax, Goods & Services tax,
sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material
statutory dues have been regularly deposited during the year by the Company with the appropriate
authorities.
According to the information and explanations given to us, no undisputed amounts are payable in
respect of provident fund, income tax, Goods & Services tax, sales tax, service tax, duty of customs,
duty of excise, value added tax, cess and other material statutory dues were in arrears as at 31st
March, 2018 for a period exceeding six months from the date they become payable.
(b) According to the information and explanations given to us, the following dues of income tax, sales
tax, service tax, duty of excise, value added tax have not been deposited by the Company on
account of disputes:

51st Annual Report 2017-18 100

 (Rs.in Lakhs)
Amount
deposited
Gross under Not Period to
Nature of
Sl. Disputed protest / deposited which the Forum where the
Name of Statute the Disputed
No Amount adjusted due to filing amount dispute is pending
statutory dues
Rs. In Lakhs by tax of appeal relates
authorities
Rs. In Lakhs

1 The Income Tax Act, Income Tax 424.37 0 424.37 1986-87 Central Board of Direct Taxes.
1961
187.15 100.00 87.15 2002-03 High Court of Andhra Pradesh

3890.48 3266.63 623.85 2002-03 High Court of Andhra Pradesh

63.93 0 63.93 2012-13 Commissioner of Income Tax

(Appeals), Hyderabad

615.60 0 615.60 2014-15 ACIT, Income Tax

2 The Central Excise Excise Duty, 36.80 0 36.80 2008-09 High court , Hyderabad
Act, 1944 Interest & Penalty
25.26 0 25.26 2009-10 & High court , Hyderabad
2010-11

48.92 5.93 42.99 2010-11 to CESTAT, Hyderabad

2015-16

9.36 0 9.36 2010-11 to CESTAT, Hyderabad

2015-16

3.54 0 3.54 2010-11 to CESTAT, Hyderabad

2015-16

93.73 0 93.73 2013-14 to CESTAT, Hyderabad

2014-15

124.68 6.76 117.92 2010-11 to CESTAT, Hyderabad

2014-15

67.33 4.58 62.75 2008-09 to CESTAT, Hyderabad

2014-15

1832.40 44.76 1787.64 2000-01 to CESTAT, Hyderabad

2011-12

82.26 0 82.26 2005-06 to Commissioner,

2007-08 Hyderabad

3 The Finance Service Tax 25777.66 0 25777.66 2008-09 to High Court, Kolkata
Act, 1994 2011-12

515.64 40.00 475.64 2007-08 to CESTAT, Chennai

2008-09

4571.21 91.54 4479.67 2003-04 to CESTAT, Bangalore

2012-13

2808.80 486.62 2322.18 2012-13 to CESTAT, Hyderabad

2013-14

101 51st Annual Report 2017-18

 (Rs.in Lakhs)
Amount
deposited
Gross under Not Period to
Nature of
Sl. Disputed protest / deposited which the Forum where the
Name of Statute the Disputed
No Amount adjusted due to filing amount dispute is pending
statutory dues
Rs. In Lakhs by tax of appeal relates
authorities
Rs. In Lakhs

4 Maharashtra Sales Tax 2.61 0 2.61 2011-12 Deputy Commissioner

Value Added Tax (Appeals), Mumbai
Act, 2002

5 The Delhi Value Sales Tax 22.44 7.76 14.68 1993-94 Sales Tax Appellate Tribunal,
Added Tax, 2004 New Delhi.
0.20 0 0.20 2008-09 Commissioner (Appeals),
New Delhi
1,200.71 0 1,200.71 2009-10 & Commissioner (Appeals),
2010-11 New Delhi
15.28 0 15.28 2010-11 Commissioner (Appeals),
New Delhi
57.50 0 57.50 2012-13 Commissioner (Appeals),
New Delhi

6 The Telangana Sales Tax 7.31 0 7.31 1997-98 High Court of Andhra Pradesh
Value Added Tax
Act, 2005 654.04 647.83 6.21 2006-07 Sales Tax Appellate Tribunal,
Hyderabad
159.59 53.20 106.39 2006-07 Sales Tax Appellate Tribunal,
Hyderabad
428.17 243.30 184.87 2007-08 Sales Tax Appellate Tribunal,
Hyderabad
276.32 185.93 90.39 2008-09 Sales Tax Appellate Tribunal,
Hyderabad
323.96 80.99 242.97 2008-09 Sales Tax Appellate Tribunal,
Hyderabad
70.24 35.12 35.12 2009-10 Sales Tax Appellate Tribunal,
Hyderabad
908.49 227.12 681.37 2009-10 Sales Tax Appellate Tribunal,
Hyderabad
156.01 53.15 102.86 2011-12 Sales Tax Appellate Tribunal,
Hyderabad
72.97 24.86 48.11 2011-12 Appellate Deputy
Commissioner, Telangana
61.94 7.74 54.20 2013-14 Appellate Deputy
Commissioner, Telangana
2.03 0.25 1.78 2013-14 Appellate Deputy
Commissioner, Telangana

Total 45598.93 5614.07 39984.86

51st Annual Report 2017-18 102

 (viii) In our opinion and according to the information and explanations given to us, the Company has
not defaulted in repayment of dues to its bankers. The Company did not have any outstanding
dues to any financial institution or debenture holders during the year.
(ix) The company did not raise any money by way of initial public offer or further public offer (including
debt instruments) during the year. During the year the company has applied the short term loans
raised from banks for the purpose for which they were raised.
(x) According to the information and explanations given to us, no material fraud by the Company or
on the company by its officers or employees has been noticed or reported during the course of
our audit.
(xi) Being a Government Company provisions of section 197 of the Act are not applicable to the
company as per Notification GSR-463(E), dated 5th June, 2015 issued by the Government of India,
Ministry of Corporate Affairs. Accordingly paragraph 3(xi) of the Order is not applicable to the
company.
(xii) Company is not a Nidhi Company; accordingly paragraph 3(xii) of the Order is not applicable to
the company.
(xiii) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, in our opinion transactions with related parties are in compliance
with section 177 and 188 of the Act where applicable and details of such transactions have been
disclosed in the financial statements as required by the applicable accounting standards.
(xiv) During the year the company has not made any preferential allotment or private placement of
share or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, in our opinion during the year the company has not entered into
non-cash transactions with directors or persons connected with them.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration No.2934S

CA L Mahesh Kumar
Partner
Membership No.212851

Place: Hyderabad
Date: 4th August, 2018

103 51st Annual Report 2017-18

 Annexure-’B’ to the Independent Auditors’ Report
Report on the Internal Financial Controls of Section 143(3)(i) of the Act to the Members of
Electronics Corporation of India Limited (ECIL) (“the Company”), on the Financial Statements
for the year ended 31st March, 2018.
We have audited the Internal Financial Controls Over Financial Reporting of Electronics Corporation of
India Limited (ECIL) (“the Company”) as of 31 March 2018 in conjunction with our audit of the 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 internal financial controls based
on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities
include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to
company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013 (“the Act”).
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued
by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit
of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and maintained and
whether such controls operated effectively in all material respects. We have considered the accounting
manual, procurement manual and delegation of powers for this purpose.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial controls
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for

51st Annual Report 2017-18 104

external purposes in accordance with generally accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error
or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Qualified opinion
According to the information and explanations given to us and based on our audit, the following material
weakness has been identified in the operating effectiveness of the Company’s internal financial controls
over financial reporting as at 31st March, 2018:
Operating procedures in respect of reconciliation, obtaining confirmations and adjustment of trade
receivables, trade payables, advances paid and advances received need to be strengthened.
A ‘material weakness’ is a deficiency or a combination of deficiencies, in internal financial control over
financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s
annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, the Company has, in all material respects, maintained adequate internal financial controls
over financial reporting as of 31st March 2018, except for the effects/possible effects of the material weakness
described above on the achievement of the objectives of the control criteria, the Company’s internal financial
controls over financial reporting were operating effectively as of 31st March, 2018.
We have considered the material weakness identified and reported above in determining the nature, timing,
and extent of audit tests applied in our audit of the 31st March, 2018 financial statements of the Company,
and the material weakness does not affect our opinion on the financial statements of the Company.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration No.2934S

CA L Mahesh Kumar
Partner
Membership No.212851
Place: Hyderabad
Date: 4th August, 2018

105 51st Annual Report 2017-18

 ADDENDUM TO DIRECTORS’ REPORT
Company's reply to observation of Statutory Auditors in their Audit Report
Auditors' Observation
The balances appearing under Trade Receivables,
Sundry Creditors, Advances paid and Advances
received include certain amounts which are long
outstanding. Pending confirmations, reconciliations
and consequent adjustments, if any, of such balances,
the impact of the same on the Statement of Profit
and Loss and Balance Sheet, is not quantifiable.
Operating procedures in respect of reconciliation,
obtaining confirmations and adjustment of trade
receivables, trade payables, advances paid and
advances received need to be strengthened.
Place: Hyderabad
Date: 24.09.2018
51st Annual Report 2017-18 106
Company's Reply
Long Outstanding amounts are being reviewed
periodically and necessary provisions are being made
in the accounts. Letters are sent to customers/
suppliers requesting for confirmation of balances to
confirm directly to Statutory Auditors as at the end
of the 30th September with a condition that it is
deemed as confirmed if it is not replied within the
stipulated time. Confirmation letters are received by
Statutory Auditors.
These being continuous in nature are reviewed
periodically and corrective actions are being taken.
However, audit observations are noted for further
improvement.
For and on behalf of the Board of Directors
Rear Admiral Sanjay Chaubey (Retd.)
Chairman & Managing Director
Annexure-F

107 51st Annual Report 2017-18