New Delhi, April 06, 2005 (TOI)

ICRA has retained the A1+ (pronounced A one plus) rating assigned to the Rs. 100 crore (reduced from Rs. 200 crore at the request of the company) short term debt programme (including commercial paper and Inter Corporate Deposits) of Bharat Electronics Limited (BEL).

The rating indicates highest safety in the short term. The rating affirmation takes into account BEL’s majority Government of India (GoI) ownership, its strong position in supply of strategic equipment to the defence forces, established manufacturing base, comfortable capital structure, comfortable liquidity and high financial flexibility.

BEL was established in 1954 under the Ministry of Defence (MoD), to cater to the electronic needs of the defence sector. GoI holds 75.9% of stake in BEL while the balance is held by Mutual funds, domestic institutions and Indian public.

BEL remains a major player in the defence electronics segment and it is the singular domestic supplier of radar, communication and electronic warfare equipment to the armed forces in the country.

The company has 9 manufacturing units and 2 central research stations across the county, with an employee base of over 12,973 as on October 2004. During FY 2004, BEL had gross sales of Rs. 27.99 billion and a PAT of Rs. 3.16 billion.