Dear Members,

Your Directors presents the 55th Annual Report together with the audited financial statements of the company for the year ended 31 March 2025.

1. HIGHLIGHTS ON OPERATIONS: i) Y our company achieved production of 3767 crore as against 2592 crore of previous financial year and achieved sales turnover of 3345 crore as against 2369 crore of previous financial year, registering a growth of 41%. ii) H ighest ever export of 1270 crore during FY 2024-25 as against the previous year's export turnover of 161 crore registering a growth of about 689%. iii) D uring the year, your company has received new orders worth about 6668 crore for supply of one of the Anti-Tank Guided Missiles (ATGM), Medium Range Surface to Air Missile (MR-SAM) and other weapon systems to the Indian Armed Forces. iv) D uring the year, your company has successfully evaluated trails of new generation ATGMs, upgraded Surface to Air Missiles, Vertical Launched Short Range Surface to Air Missiles (VL-SRSAM), Long Range Land Attack Cruise Missiles (LR-LACM) and Underwater Weapons.

2. FINANCIAL RESULTS AND PERFORMANCE HIGHLIGHTS:

2.1 P erformance of the company in financial terms is summarized below:

excluding the other comprehensive income and number of shares outstanding #EPShasbeencalculatedbasedonprofits at the end of the year is adjusted for the impact of sub division of 1 fully paid up equity share having a face value of 10 each into 2 fully paid up equity shares having a face value of 5 each.

2.2 F ollowing data reflect the financial position of the company:

*Figures have been reclassified and regrouped, wherever necessary.

2.3 D uring the year under review, your company has achieved revenue from operations of 3345 crore, compared to crore in the previous financial year, registering a growth of 41%. The growth in turnover is primarily driven by boosted manufacturing activities and easing out of supply chain constraints.

D uring FY 2024 25, the company reported a profit before tax of 749 crore, compared to 828 crore in FY 2023 24. The decline is primarily attributed to the absence of a one-time net gain of 119 crore (after offsetting 46 crore in expenses) that was recorded in the previous financial year. Additionally, the current year's results were impacted by a 141 crore provision for a contract identified as onerous and a 90 crore provision for expected credit losses on trade receivables.

T he major products executed during the year are ATGMs, Akash-SAMs. The order book position of the companyas on 31 March 2025 is about 22814 crore.

I n the fiscal year 2024-25, your company recorded a turnover surpassing 3345 crore, a 41% rise from the previous year, with exports soaring 689% to 1270 crore. The company secured orders worth 6668 crore building an order book of 22814 crore as on 31 March 2025. Your company anticipates further new orders worth 20000 crore over the next 2-3 years as several orders are in the finalization stages, ensuring robust future growth.

Y our company is committed to advancing India's comprehensive and strategic approach. We prioritize the indigenous development of critical defence technologies, including missile seekers, homing systems, avionics, cruise missile propulsion, specialized warheads, and electronic warfare systems. T o drive innovation and foster cutting-edge research, we actively collaborate with premier

NITs, and domain-specific research centers. These to India's strategic needs.

I n parallel, we pursue joint ventures with leading global defence firms, bringing world-class practices to India. These collaborations support both domestic requirements and export-oriented production, strengthening India's position in the global defence market.

W e strategically engage in foreign technology transfer programs, not only to bridge existing track the Make-in-India initiative. From the contractual stage, we emphasize maximizing indigenous content, ensuring that each project contributes to the long-term vision of technological sovereignty.

T hrough this integrated approach combining indigenous innovation, global collaboration, and strategic capability-building your company is shaping the future of India's defence ecosystem, making it robust, competitive, and self-reliant. T he Government of India has approved several BDL products for export, BDL has begun penetrating the global defence market, offering customized solutions and comprehensive lifecycle management for its products. By partnering with local defence industries in customer countries, BDL ensures robust, localized lifecycle support. To boost efficiency, BDL is optimizing its production lines by streamlining processes and adopting advanced technologies, ensuring timely deliveries while maintaining high-quality standards.

I n FY 2025 26, we will continue to focus on organizational capacity building, talent development, and fostering a high performance culture across the company. With a skilled workforce, solid institutional foundation, and a clear strategic direction, BDL is confident in its ability to deliver value to stakeholders, contribute meaningfully to national defence preparedness, and emerge as a global player in the defence manufacturing sector.

3. FIXED DEPOSITS FROM PUBLIC:

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

4. DIVIDEND & TRANSFER TO GENERAL RESERVE:

Y our company has a consistent track record of Dividend Payment. The Board has recommended a Final Dividend of 0.65/- per equity share of face value of 5/-each amounting to 23.83 crore for the year 2024-25. Further, your company has paid interim dividend of 4 per share (at face value of 5/- each) amounting to 146.63 crore for the year 2024-25. The total dividend for FY

2024 25 declared by the company is 4.65 per share (at face value of 5 each). An amount of 400 crore is being transferred to General Reserve for the year 2024-25.

5. CAPITAL STRUCTURE:

T he paid up capital of the company as on 31 March, 2025 stood at 183.28 crore (36,65,62,500 equity shares of 5/- each).

The Authorized Capital of the company is 200 crore (40,00,00,000 equity shares of 5/- each) as on 31 March 2025.

As on 31 March 2025, the Govt. of India shareholding in the company stands at 74.93% (representing 27,46,51,054 equity shares of 5/- each).

6. SUB SIDARIES/JOINT VENTURES/ASSOCIATE COMPANIES:

As on 31 March 2025, your company has two section 8 Joint Venture companies viz., M/s Electronic Warfare (Defence) Testing Foundation and Advanced Materials (Defence) Testing Foundation formed under Defence Testing Infrastructure Scheme (DTIS) promulgated by Department of Defence Production, Ministry of Defence. Your company holds 10% shareholding in M/s Electronic Warfare (Defence) Testing Foundation and 20% shareholding in Advanced Materials (Defence) Testing Foundation. These entities are not considered for preparation of consolidated financial statements as the company does not have right to variable returns from its involvement, other than equity investment.

7. PERFORMANCE AGAINST MoU:

Y our company signs a Memorandum of Understanding (MoU) every year with the Ministry of Defence, Government of India. The performance of the company for the year 2023-24 was rated as "Very Good" and the performance for the year 2024-25 is under evaluation.

8. MODERNIZATION & UPGRADATION:

D uring the year, an amount of 282.75 crore has been spent towards Capital Expenditure (CAPEX) programs for the modernization of Plant & Machinery and other infrastructure development, including joint development programs. The majority of this amount was dedicated to establishing the infrastructure work for establishment of propellant plant at Jhansi, infrastructure work for Phase-II at Ibrahimpatnam. Additionally, your company has planned to spend approximately 200 crore during the current financial year 2025-26 on various CAPEX programmes, including construction of Jhansi Unit, Phase-II infrastructure development at Ibrahimpatnam and Ceramic Radome facility at Kanchanbagh.

Y our company is making determined efforts to increase the indigenization content in the manufacturing of ATGMs, SAMs, Air to Air Missiles, and Torpedoes. This objective aims to enhance self-reliance and reduce dependence on imports

9. RES EARCH & DEVELOPMENT:

Y our company acknowledges that Research and Development (R&D) plays a pivotal role in the growth of the organization. To cater to the requirements of the Indian Armed Forces, your company has identified several products for R&D. The following table shows the recent trend of in-house R&D expenditure:

I n compliance with the Procurement Policy of the Government of India, your company has surpassed the mandated procurement requirement of 25% from Micro, Small, and Medium Enterprises (MSMEs). During the year 2024-25, your company procured 29.12% of goods and services, amounting to approximately 460.48 crore, from MSMEs out of its total procurement of 1581.42 crore. By achieving the mandated target of 25% from MSMEs, your company has demonstrated its commitment to supporting and promoting the growth of these enterprises.

Y our company endeavors to expand its vendor base through special drives and by offering free registration in certain cases on specific occasions. Throughout the year, your company conducted 6 vendor meets, resulting in over 500 registered vendors as of the current date. Furthermore, your company has implemented an updated Integrity Pact in accordance with the directives of the Central Vigilance Commission's latest circular and adheres to the Standard Operating Procedure outlined therein. Your company has procured goods & services to the tune of 3.83% (of total procurement) from Women MSM enterprises, thus surpassing the 3% target set for such procurement. The procurement from SC/ST owned MSMEs stood at 1.19% (of total procurement) against the mandated procurement of 4%, about 1174 MSMEs (including SC/ST & women) have been benefitted in FY 2024-25.

Y our company registered as both a Buyer and Seller with the Government e-Marketplace (GeM). GeM is utilized for procuring common items and services. Throughout the year, your company has successfully procured common goods and services worth 1501 crore through GeM out of total procurement of 1581.42 crore (Gross Merchandise Value) with staggered deliveries. This demonstrates your company's active engagement and utilization of GeM for streamlined procurement processes.

11 EXHIBITIONS:

D uring the year, your company has showcased its products in various National and International Exhibitions where in the Senior Executives and Directors of the company took it on themselves to explain to the various stake holders on the developments in the company and enabled greater collaboration with all stakeholders. The details along with the photographs of such exhibitions are as follows:

Y our company has placed significant emphasis on the export of Weapon Systems. During the year, your company has registered highest exports value of about 1270 crore, which is all time high in the history of the company. The products offered by your company are state-of-the-art, designed indigenously, competitively priced, and not heavily reliant on any foreign Original Equipment Manufacturers (OEMs). With existing facilities, your company is well prepared to meet both domestic and export demands. Several leads have been received from various friendly foreign countries for the export of BDL products, these leads are actively being pursued by the export cell, which is engaged in interactions with overseas customers to achieve export targets. As a result, your company has secured orders for the export of various Weapon systems, CMDS, ATGMs, SAMs etc. from friendly foreign countries. Channel Partners/Agents have been appointed in several countries to promote your company's exportable products. Your company has also participated in various Foreign Defence Exhibitions to showcase its products on-one meetings with participants from the Armed Forces/Ministries of Defence of other countries. To strengthen international engagement, BDL is working closely with Indian Embassies / Defence Attaches to arrange meetings and visits with stakeholders from foreign countries. Furthermore, plans are underway to open Representative Offices in foreign countries. As of 31 March, 2025, your company has total export order book of 1167 crore, reflecting the growing success in the international market.

As part of its commitment to building an Atmanirbhar Bharat (Self-Reliant India), BDL has prioritized indigenization the very outset of each contract. The company manufactures missiles through Technology Transfer (ToT) agreements with both the Defence Research and Development Organisation (DRDO) and foreign Original Equipment Manufacturers (OEMs).

W hile initial ToT from foreign OEMs covered only around 60% of the technology, BDL has successfully increased indigenization levels to over 80% 90% in many of these products. For DRDO-designed systems, most of them have already achieved indigenization levels exceeding 90%. BDL continues to make concerted efforts to further enhance indigenization across its entire product range, reinforcing its role in strengthening India's defence manufacturing capabilities.

BDL is utilizing the Srijan Portal, an indigenization initiative by the Ministry of Defence. The primary objective of the Srijan is to engage the private sector in the indigenization efforts of Defence PSUs. BDL regularly uploads details of imported items identified for indigenization, Indian industry partners to come forward and participate in their development. enabling A ccordingly, BDL has uploaded 1,198 imported items on the portal. As of this year, 217 items have been indigenized cumulatively.

Necessary technical support is being provided to Micro, Small, and Medium Enterprises (MSMEs) to encourage them to produce quality components.

BDL is also fostering collaboration with startup companies, identifying problem statements for them to work on and innovative solutions. Memorandums of Understanding (MoUs) are being signed with these companies to support their growth and create new business opportunities.

F urthermore, as of this year, the Ministry of Defence has issued five Positive Indigenisation Lists (PILs) under the Department of Defence Production (DDP) as part of ongoing efforts to promote self-reliance in defence manufacturing through the Atmanirbhar Bharat Abhiyan. These lists include an embargo on imports beyond specified timelines.

O f the five PILs issued, 59 items are associated with BDL. Out of these, BDL has successfully indigenized 49 items, while the remaining items are at various stages of the indigenization process.

I n line with the Government of India's vision for the Make in India initiative, with a special focus on Atmanirbharta in Defence, BDL has conducted and participated in several vendor development programs and seminars, showcasing components and sub-assemblies proposed for indigenization.

D uring these events, vendors were briefed on the indigenization procedures, as well as the technical and procedural support that BDL would provide throughout the indigenization process.

BDL and the Innovation for Defence Excellence (iDEX) programme have forged a strategic partnership, in alignment with the Government's vision of Atmanirbhar Bharat. This collaboration has led to the creation of a robust ecosystem where BDL works closely with aspiring entrepreneurs and MSMEs to enhance its innovation and R&D capabilities T hrough iDEX, BDL has been engaging with startups to develop innovative technologies for its R&D projects and for the production of missile systems for the Indian Armed Forces. As a result of this partnership, a Miniaturized Visual Imaging Guidance System was successfully developed during 2024 25.

14.1 T he company has been following Presidential Directives of the Government with regard to reservation of posts for

STs/OBC in recruitments.

14.2 T otal manpower strength as on 31 March 2025 is at 2269 (including four functional directors). Out of the total strength, 72 are ex-servicemen, 465 are of Schedule Caste, 200 are of Scheduled Tribes, 792 are of OBC category and 10 are of EWS category. The percentage of Scheduled Caste and Scheduled Tribes in respect of employees is at 20.49% and 8.81% respectively.

14.3 T he No. of Scheduled Caste, Scheduled Tribes, OBC and EWS in various categories of posts as on 31 March 2025 is below:

14.4 R ecruitment of employees in Scheduled Caste, Scheduled Tribes, OBC, EWS during 2024-25 is given below:

As per the recommendation No.51, Para (ii)(a) of the National Commission for Women (NCW) in its Annual Report year 1995-96, the employment position of Women as on 31 March 2025 is given below as Defence, vide their letter Nos. 39(6)/99/D(B&C), dated 27 August 1999.

T he total number of Physically Challenged employees as on 31 March 2025 is 93 and its percentage to total employees works out to 4.10%.

D uring FY 2024-25, your company has demonstrated a strong commitment to employee development by conducting various training programs for both Executives and Non-Executives. A total of approximately 1415 employees participated, resulting in 3099 training man-days. These programs, conducted through both in-house and external agencies, were designed to enhance skills and knowledge while also meeting statutory requirements.

T hese initiatives aimed to enhance executives' understanding of internal systems and procedures, get acquainted with latest technologies, improve interpersonal communication and presentation skills, and ultimately enable them to perform their roles more effectively, contributing to the company's success.

15.1 K ey Training Programs and Initiatives: 15.1.1 Vigilance Awareness Week Trainings: i) C onducted during 03 September 2024 to 03 October 2024. ii) Vig ilance Awareness Trainings were conducted as per the directions from Central Vigilance Commission covering employees, entry level managers and mid-level managers who have at least 10 years of experience. iii) T hemes: Ethics and Governance, Conduct Rules (CDA Rules), Conduct Rules (Standing Orders), Systems and Procedures of the Organization (NOC, Higher Education, FR56J, Grievance Procedure, Pension, PSMB etc), Cyber hygiene and Security, Procurement.

15.1.2 Skill & Knowledge Programmes: i) V arious Skill based programmes viz. NDT Techniques, Comprehensive AI Fundamentals, Leveraging AI to enhance productivity, Design and Optimization of UAVs, Industry 4.0 / QA 4.0 ii) Kno wledge Programmes: SAP Functional Modules (MM & PP), DPR course on Media, Defence Management Course, Mission Design and Avionics at IIST Trivandrum by ISRO etc. were conducted to stay abreast of the latest technological advances in the industry.

T his is an online learning and career management platform for Government Employees. Over the years, the idea is acclimatize employees with iGOT trainings along with the regular in-house and External trainings, so as to maximize the learning appetite and to become a learning organization. All the employees were encouraged to complete 5 training capsules as pilot phase. About 87% employees were registered till FY 2024-25 and about 33% employees have completed the following courses: i) P revention of Sexual Harassment of Women at Workplace ii) I ntroduction to Emerging Technologies iii) O rientation Module on Mission LiFE iv) S tay Safe in Cyber Space v) C ode of Conduct for Government Employees

As part of Women's Day celebrationsan outbound training was conducted on 08 March 2025 to empower the employees wherein about 300 women across all Units have participated.

15.1.5 Special Workshops and Trainings conducted: i) O n InternationalDay of Disabled Persons, a workshop for Persons with Benchmark Disabilities 03 December 2024. ii) S pecial Training Programmes for SC, ST, OBC, Ex-servicemen & PwD Associations and EC Members of Registered Union were trained on Reservations and Rosters, Role of Union in CPSEs to promote diversity and inclusion.

15.1.6 Prime Minister Internship Scheme: i) P hase 1 of PMIS has commenced from 02 December 2024 with target of posting 250 vacancies for FY 2024-On approval of Competent Authority, BDL has published vacancies for 250 nos. of Interns under Prime Minister's Internship programme in FY 2024-2025 across all Units of BDL. ii) T hese Interns are being provided with Lunch, Transport, Accommodation,Medical facilities and Mentoring apart from providing the Internship Allowance.

N o employee of the company received remuneration in excess of the limits prescribed under Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Furthermore, in accordance with Ministry of Corporate Affairs Notification No. GSR 463(E) dated 05 June 2015, Government Companies are exempt from the provisions of Section 197 of the Companies Act, 2013 and the rules made thereunder.

Y our company incurred an expenditure of around 3.36 crore during the year under report towards foreign travel for business trips.

Y our company maintains cordial and harmonious industrial relations through the cooperation of all employee sections, the Recognized Trade Union and associations for SC, ST, OBC, Ex-Servicemen, and Officers. Statutory and non-statutory committees like the Works Committee, Safety Committee, Canteen Managing Committee, and Welfare Committee play a key role in maintaining workplace discipline.

C ompliance with statutory welfare provisions is strictly followed. The Post Superannuation Medical Benefit Scheme addresses the medical needs of retired employees and their families. There is cordial cooperation between the Recognized Trade Union and all associations and the Management, ensuring smooth functioning of the organization.

T he Central Industrial Security Force (CISF) is responsible for providing security and fire services at both the Kanchanbagh and Bhanur Units, playing a crucial role in ensuring the security and protection of the company's property. The CISF team has implemented robust security measures, combining physical measures and advanced technology to maintain the security of highly sensitive installations T o oversee the security arrangements and the implementation of Intelligence Bureau (IB) guidelines, the Plant Security Council is in place. Regular security review meetings are conducted by both the management and CISF to enhance I n addition to computerized photo identity cards, a Biometric Access Control System has been implemented to prevent unauthorized entry. CCTV cameras are installed throughout the factory premises to expand the coverage of CCTV surveillance. Door frames, metal detectors, and X-ray baggage machines are also utilized. Barricades, boom barriers, and mochas are provided to reinforce physical security measures.

R egular security awareness programs are conducted, along with the observation of Security Week and Fire Week. Employees are sensitized to security threats and educated on the appropriate actions to be taken during emergencies and fire accidents.

BDL stringently follows, applicable norms to maintain Safety, Health and Environment (SHE). The two Safety Committees i.

Industrial Safety Committee and Explosive Safety Committee monitor Safety, Health and Environment (SHE) at regular intervals at BDL, KBU. The Industrial works are carried out in compliance with Factories act 1948, and explosive safety is stringently adhering to the Storage & Transport of Explosive Committee (STEC-2017) regulationsframed by Centre for Fire, Explosive & Environment Safety, (CFEES) MoD, New Delhi. Safety committee meetingsare conducted periodically to monitor the Safety, Health and Environment as per the statutory norms. The safety related issues are reviewed at regular intervals by General Manager/Unit Head for compliance.

D uring the year, Industrial Safety audit was conducted by Deputy Chief Inspector of Factories, Telangana State and observations made are duly addressed. Annual Explosive safety audit was conducted by Centre for Fire, Explosive & Environment Safety (CFEES) New Delhi and necessary actions are taken based on their observations. EMS (ISO 14001:2015) surveillance (external) audit was also successfully completed in Feb-2024 without any NC's/observations.

4 March 2025 is observed as 54th National safety day Campaign, this event observed for entire week from 4 March-11 March of 2025. In this campaign various events like Safety pledge was administered at the main gate entrance, different workstations of concerned departments, safety badges distributed to all, safety day banners displayed, various competitions like safety slogan, essay & elocution conducted in Hindi/Telugu/English languages, safety quiz and basic first aid firefighting demo conducted as safety promotional activities. Followed by 54th National Safety Day Campaign valedictory function Director (Production) & Executive Director (Unit Head) with special guests Director of Factories & Joint Chief Inspector of Factories, Telangana State.

I n terms of training programs, both in-house and external trainings are regularly conducted for employees on industrial and explosive safety. During the year, a special program was organized on "Train the Trainer Explosive Safety" which was delivered by Retd., Director (CFEES) and followed by a technical session on Static Electricity which was delivered by M/s. 4S Techno Systems, Hyderabad. Special medical checkups are carried out for employees working in Electroplating and Canteen. Periodical medical checkups are carried out for employees working in other areas. Fire mock drills are conducted at regular intervals to ensure firefighting preparedness.

S afety Engineering Department is in continuous interaction with Inspector of Factories, Telangana, State Pollution Control Board (TSPCB) and Centre for Fire, Explosive & Environment Safety (CFEES) MoD, New Delhi and complying with their guidelines, issued from time to time.

As per the company's environmental policy, your company is committed to manufacturing and supplying defence products to the Indian armed forces in an environmentally friendly manner. The key environmental commitments include: i) P rotecting the environment and preventing all types of pollution. ii) F ulfilling compliance obligations. iii) C onserving natural resources. v) C ontinually improving to enhance environmental performance. Y our company demonstrates a strong commitment to environmental sustainability and compliance with regulations through various initiatives and certifications. Here are the key environmental management practices and measures in place across all three units Kanchanbagh, Bhanur, and Visakhapatnam:

A ll units are recertified with ISO 14001:2015 (EMS) to assess pollution levels and ensure compliance with legal requirements.

21.1.2 Waste Management: i) Plastic Use Reduction: Issued a circular to discourage the use of plastics. ii) E-waste and Hazardous Waste: Disposed of through agencies registered with the Pollution Control Board. iii) Solid Waste: Disposed of through M/s MSTC, a government undertaking, specifically ferrous and non-ferrous metals. iv) Biomedical Waste: Disposed of through an agency registered with the Pollution Control Board. v) Housekeeping: Proper practices are maintained to ensure a clean and safe environment.

21.1.3 Zero Liquid Discharge System: i) Effluent Treatment: Treated water from the effluent treatment plant undergoes further treatment through reverse osmosis (RO). ii) Usage of Treated Water:

- R O treated water is utilized in the Demineralized Water (DM) plant for producing DM Water.

- DM Water is used in the Electroplating Shop, CNC machines, and flow forming machines in the Workshops. iii) Gardening: Treated water from the sewage treatment plant is used for gardening within the premises.

21.1.4 Audits and Monitoring: i) Internal and Surveillance Audits: Conducted at regular intervals by certification bodies for ii) Environmental Parameters Monitoring:

- A mbient air quality, stack quality of DG sets/venturi scrubbers, sewage treatment plants, and effluent treatment plants.

- N oise levels tested as per specified frequencies. iii) Resource Monitoring: Water quantity monitored using separate water meters and electricity consumption is tracked to comply with consent conditions.

O n the occasion of World Environment Day, the Prime Minister of India launched a global campaign, "#EkPedMaaKeNaam" / "#Plant4Mothers." In support of this initiative, BDL planted 8,366 saplings of various species, including Mango, Guava, Lemon, Coconut, Amla, Pomegranate, Neem, Orange, Peepal, Teak, Tamarind, Chilbil, Sababia Roja, Gulmohar, Pagoda, Kala Jamun, Spanish Cherry, Terminalia, Spathodea, Caesalpinia, Cassia Javanica, Jacaranda, and Tecoma Gaudichaudi, covering a total area of 15.13 acres.

W orld Environment Day 2024 was celebrated with great enthusiasm across all BDL units. Banners were displayed prominent locations, and saplings were planted on 5 June 2024 to mark the occasion. Slogan writing, essay writing, and quiz competitions were organized based on the theme "Land Restoration, Desertification, and Drought Resilience." Prizes were distributed to the winners during the valedictory function.

A ll production divisions/units including Akash, CP-IGMP, Design & Engineering, Electronics Division of Kanchanbagh Unit, and Visakhapatnam Units are certifiedwith AS 9100D, an aerospace quality management system standard. Kanchanbagh, Bhanur, and Visakhapatnam Units are also certifiedwith ISO 14001:2015 (EMS), which is an environmental management system standard. The Corporate Office is certified with ISO 9001:2015 (QMS), which Testing Lab, Electronics Lab, and Standard Labs are certified with ISO/IEC 17025:2017, which pertains to the competence of testing and calibration laboratories. The Electronics Division is certified with AFQMS (Air Force Quality Management System) Furthermore, BDL holds the ISO/IEC 27001:2022 certification for information security management systems (ISMS). Internal audits for all ISO/AS certified divisions are conducted by the company's own internal auditors, while surveillance audits are carried out by certification bodies as per the prescribed frequency.

I n addition to these certifications, your company is committed to continuously improving customer satisfaction through meets and interactions with users. Corrective actions are implemented wherever necessary to drive improvement in processes and meet customer expectations.

23.1 I mplementation of OL Act-1963 (as amended 1967) & Rules regularly under the Chairmanship of CMD and Directors, besides submission of Quarterly progress reports on use of OL, which are sent in time to authorities concerned.

23.2 I n compliance with the Official Language (OL) Act, 1963 and the Presidential Orders thereon, the papers laid before Parliament, the Annual Report of the Company, the Memorandum of Understanding (MoU) with the Ministry of Defence (MoD), and brief presentations for various Parliamentary Committees and delegations are prepared in bilingual format and submitted accordingly.

23.3 I n compliance to the assurances and directives of Parliamentary Committee on OL, ‘A series of Hindi Workshops' were organized wherein a total of 512 nos. of officials were covered in 20 Hindi Workshops organized during the year with an objective to integrate the use of Hindi effectively in day-to-day functioning. During the workshops, fulfilling the assurances given to the parliamentary Committee on OL and its action plan was discussed and implanted later. Also, the use of ‘Kanthasth 2.0' a memory based translation software developed by Department of Official Language, GoI was also discussed with its hands on training for effective implementation of OL in day-to-day functioning. To promote the original writing in Hindi in Technical and Non-Technical areas with detail coverage of OL activities of the Organization, a dedicated "BD Hindie-MagazineoftheOrganization titling 23.4 A n "Orientation Program on OL Policy" was organized on 7 March 2025 for newly joined executives. The DGM (HR-OL) briefed the trainee officers on the Official Language Policy of the Government of India, emphasizing the role of executives in its implementation and encouraging them to use Hindi in their routine work.

23.5 BDL was awarded the "TOLIC RajbhashaTrophy"forthebestimplementationof the Official Language among PSUs in the twin cities. The trophy and certificate were presented by the CMD of ECIL & Chairman, TOLIC (Undertakings) to the DGM

(HR-OL) at the 59th Half-Yearly Meeting held on 28 May 2024.

23.6 H indi Fortnight 2024 was celebrated from 10 to 26 September 2024 at the Corporate Office and across all units. Various competitions were organized,Drafting', ‘Hindi Dictation', ‘Hindi Typing on Computers', including ‘Vocabulary-Noting-and ‘Multimedia Hindi Quiz' for officers and employees at the Corporate Office, Kanchanbagh Unit, Bhanur Unit, and Visakhapatnam Unit. BDL also participated in Hindi Diwas and the 4th All India OL Conference organized by the Department of Official Language, MHA, GoI, from 14 to 15 September 2024 at Bharat Mandapam, New Delhi. The valedictory program for the Hindi Fortnight was held on 26 September 2024 under the chairmanship of the CMD, with Directors, Unit Heads, and senior officials in attendance. Cash awards were presented to the winners of competitions and to employees recognized for original work in Hindi during the year.

23.7 T o mark the golden jubilee of the Constitution of India and the Official Language, a special March 2025. A lecture session included a documentary on the Constitution and a presentation covering its key features and creation. In the second session, the DGM (HR-OL) spoke on the role of the Official Language in national development and highlighted various Government initiatives to promote and propagate Hindi.

23.8 A ‘Hindi Kavya Goshthi' was organized on 7 March 2025 to encourage creative writing among executives and executives. Dr. Surabhi Dutt, a political science academician, and Dr. Rajeev Singh, an eminent writer and academician, were the chief guests. Besides the guests, BDL executives also presented their poems during the event.

23.9 O n occasions such as Republic Day, Independence Day, Vigilance Awareness Week, Swachhata Pakhwada, and Constitution Day, programs were conducted in both Hindi and English. The company's Hindi website was regularly updated in line with Government directives. Officers and employees also participated in Inter-PSU competitions conducted by TOLIC

(Undertakings) and won eight prizes.

23.10 Topromotetheuse officers and employees, BDL subscribes to a variety of Hindiandencouragereadinghabitsamong

Hindi magazines and newspapers, including Hindi Milap, Swatantra Vaartha, Daily Shubha-Labh, Anuvad, Sahitya Amrit, Avishkar, Yojana, Hindi Rozgar Samachar, Pratiyogita Darpan, Meri Saheli, and Hans. Additionally, popular Hindi books on various subjects are purchased annually as per the directives of the Department of Official Language.

24.1 P reventive/ proactive vigilance has been the primary objective of Vigilance Department of the Company. As a part of its proactive vigilance measure, the department has issued 11 Systemic Improvement Suggestions in the areas of e-reverse auction, Recruitment, Departmental Promotion, Reservation, Sensitive Area Rotation, Civil works and Service Contracts etc. and of which many have been implemented by the Management during the year under report. Brief of all the Systemic Improvements have been hosted on BDL website https://bdl

24.2 I n furtherance of its preventive vigilance approach, as directed by Hon'ble CVC as a prelude to observance of

Awareness Week-2024, various preventive vigilance measures were undertaken in 3-months campaign made across units of the Company during 16 August 2024 to 15 November 2024 in the following focus areas:

- Capacity Building Programs

- I dentification and implementation of Systemic Improvement measures

- D ynamic Digital Presence

- U pdation of Circulars/ Guidelines/ Manuals

- D isposal of complaints received before 30 June 2024

24.3 B eing an extended arm of the Central Vigilance Commission (CVC), NewDelhi,thedepartmenthassubmitted various reports i.e., Monthly, Quarterly, Annual & CTE Type to the Commission and also to Department of Vigilance, Ministry of Defence and to the Board of the Company. The Department has also issued vigilance clearances to employees in cases of Recruitment, Promotion, Absorption, Confirmation, Foreign visits, for postings in sensitive areas etc. The department also accorded priority in handling the complaints as per the complaint handling policy of the CVC. 24.4 As part of the observance of Vigilance Awareness Week during the campaign period, Smt. G Sreedevi Retd, Justice of High Court of Telangana, visited Kanchanbagh Unit of BDL on 04 November 2024. On her visit to the Company, Smt. G Sreedevi was briefed about BDL by Commodore A. Madhavarao (Retd.), Chairman & Managing Director, BDL. A presentation was made by Shri K. Srinivas, AGM & HoD (Vigilance) about the vigilance activities at BDL and the preventive vigilance activities being undertaken in campaign period. In her keynote address to the gathering of senior management executives, the chief guest appreciated the vigilance initiatives of BDL. During her address, she has highlighted the Awareness Week and exhorted all to be vigilant about irregularities. She has underlined the need for transparency and enhancing awareness among the employees about vigilance.

24.5 O bservation of Vigilance Awareness Week is an integral part of the Vigilance department. As directed by the Central

Commission, Vigilance Awareness Week (VAW)-2024 with the theme "Culture of Integrity for Nations Prosperity" was observed across units of Bharat Dynamics Limited from 28 October 2024 to 03 November 2024. The observance of VAW- 2024 commenced with Commodore A. Madhavarao (Retd.), Chairman and Managing Director (CMD), BDL administering ‘integrity pledge for citizens' at 11 AM on 28 October 2024 at BDL-Kanchanbagh Unit. Employees of Corporate Office, Bhanur Unit, Visakhapatnam Unit and lbrahimpatnam Unit participated in the ceremony through video-conference and took integrity pledge. This was followed by reading out messages of Hon'ble President of India, Hon'ble Vice-President of India, Hon'ble Prime Minister of India by Directors and message of CVC by HoD (Vigilance) to the august gathering. The program was live across units of the company through video conference. A total of 2310 employees of BDL have taken the Integrity Pledge during observance of vigilance awareness week.

24.6 I n order to create awareness on vigilance and the importance of it in day-to-day life, various competitions such as

Writing, Elocution, Slogan Writing, Poster making on issues relating to Anticorruption were conducted for employees, spouse and children of employees during the Vigilance Awareness Week-2024. ‘Integrity pledge for Citizens' was administered to the students. Special emphasis was given to involve youth in various activities and as a part of it, Debates on topics related to anti-corruption were conducted in colleges in Hyderabad and Visakhapatnam.

24.7 As part of Vigilance Awareness Week - 2024, Sensitization programs for employees on matters relating to the Inquiry Officer (IO) & Presenting Officer (PO), Ethics and Governance, Public Procurement, Cyber Hygiene and security, Systems and Procedures of the Organization, Complaint Policy of CVC and Disciplinary Proceedings procedure etc., were conducted across units of the company.

24.8 T o spread awareness on the theme of "Culture of Integrity for Nations Prosperity" and to sensitize employees of BDL public at large, banners on the theme were displayed at conspicuous places across units of the company and in public places too. To promote citizens to take eve ‘e-integrity pledge', a link of eve website was hosted in the BDL website. Short telephonic messages were sent to all employees encouraging to be a part of "Vigilance Awareness Week-2024" and to take integrity pledge clicking by the link http://pledge.cvc.nic.in. 24.9 I n order to spread the messages to public about the ill effect of corruption on society and the importance of self reliance & integrity in life, a walkathon was organized by Bhanur Unit at Kyasaram village on 30 October 2024. Students, youth, personnel from CISF Unit of BDL Bhanur Unit, BDL employees, local leaders and the general public participated enthusiastically in the Walkathon. ‘Integrity Pledge' was administered to the participants on the occasion. Shri P V Rajaram, Director (Production), BDL has flagged-off the walkathon along with representatives of the Municipality Officials. Public were appraised of the need to ensure integrity in their day-to-day life and commit to the development of the Nation by saying ‘no' to corruption. Placards and banners with slogans on ill effects of corruption were displayed.

24.10 O nline Vendor Meet was organized by Corporate Commercial Department of BDL on 29 October 2024 at Corporate Office, 150 vendors of BDL participated. A presentation on the provisions of Integrity Pact (IP) and role of Independent External Monitor (IEM) was made on this occasion.

Y our company has zero tolerance approach to bribery and corruption. Your company prohibits all forms of bribery and corruption whether involving, but not limited to Government Officials or a Private Sector persons or Company and whether directly or indirectly. The Board of Directors had approved a policy on Anti-Bribery and Anti-Corruption and the same was hosted on website of the Company https://bdl-india.in/sites/default/files/BDLACABPolicy_0.pdf .

26.1 T he Board of Directors of the Company comprises Functional Directors, Government Nominee Directors and Independent Directors (i.e. Non Official Part Time Directors) who are appointed by the Government of India from the tenure and remuneration of Functional Directors including Chairman and Managing Director are decided by the Government of India through Public Enterprises Selection Board/Search Committee. The Government communication also indicates the detailed terms and conditions of their appointment including a provision for the applicability of the relevant rules of the Company.

26.2 T he Government Nominee Directors are not entitled to any remuneration/sitting fee. The Independent Directors (i.e. Non Official Part Time Directors) are entitled to sitting fees for attending the Board/Committee meetings as approved by the Board, considering the government directives, statutory acts, rules and regulations.

D uring the year, out of six (6) Independent Directors, the term of office of five (5) Independent Directors namely Shri. Sunil Chintaman Mone, Shri. Nandakumar Subburaman, Dr. Pawan Sthapak, Prof. (Dr.) Sanghamitra Mishra and Shri Rajendra Singh Shekhawat was completed in the month of December, 2024. The Board expresses its gratitude contributions made by them during their tenure.

T he Ministry of Defence, Government of India vide its letter No. -M0001(11)/3/2018-D(BDL) dated 22.04.2025 appointed Shri.Chetan Bansilal Kankaria as Part-time Non-Official Independent whichever is the earliest.

I ndependent Directors have given declarations u/s 149(7) of the Companies Act, 2013 that they meet the criteria of independence as laid down u/s 149 (6) of the said Act.

26.4 D uring the year, the Ministry of Defence, Government of India has appointed Shri. D. V. Srinivas as Director (Technical) of BDL vide their letter No. DDP-M0001(11)/4/2023-D(BDL) -dated 20 September 2024 and Shri. G. Gayatri Prasad as Director (Finance) of BDL vide their letter No. DDP-M0001(11)/3/2023-D(BDL)-dated 18 December 2024.

26.5 I n accordance with the provisions of Section 152 of the Companies Act, Shri. U. Raja Babu, Govt Director, retires by rotation at the upcoming Annual GeneralMeetingand, offers himself for reappointment. being eligible,

D uring the year 2024-25, six (6) Board Meetings were held on 30 May 2024, 09 August 2024, 25 October 2024, 14 November 2024, 09 December 2024 and 06 February 2025.

T he provisions of Section 134(3)(p) of the Companies Act, to your company since necessary exemptions are provided to all government companies. Further, similar exemptions were granted to your company by Securities Exchange Board of India (SEBI) under the provisions of SEBI (Listing Obligations and Disclosure Requirements {LODR}) Regulations, 2015 vide their letter No. SEBI/HO/CFD/DIL1/OW/P/2018/1679/1 dated 17 January 2018.

T he following are the statutory Committees constituted by the Board and they function according to their respective roles and defined scope:

A udit Committee

N omination and Remuneration Committee

C orporate Social Responsibility and Sustainability Development Committee

S takeholders Relationship Committee

R isk Management Committee

D etails of composition, terms of reference and number of meetings held for respective on Corporate Governance, which forms a part of this Annual Report.

As per Section 134(3)(C) and 134(5) of the Companies Act, 2013 as amended, the Directors state that:

(i) in the preparation of the annual accounts, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

(ii) D irectors have selected such accounting policies and applied them consistently and judgments and estimates made are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31 March 2025 and of the profit of the company for the year ended on that date.

(iii) D irectors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

(iv) D irectors have prepared the annual accounts on a going concern basis.

(v) D irectors have laid down internal financial controls which are being followed by the company and that such internal controls were adequate and operating effectively and (vi) D irectors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

T here are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern and company's operations in future.

M aterial changes and commitments affecting the financial position of the company which have occurred between 31

2025 and date of signing of this Report are - Nil.

During the year 2024-25, four (4) Audit Committee meetings were held to review internal control systems and their adequacy, including coverage of Audit functions. Details of composition, terms of reference, etc., are covered Governance.

31. CO RPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY DEVELOPMENT: of the Companies Act, 2013 and The Companies (Corporate Social Responsibility) 31.1 P ursuanttotheprovisionsofSection

Rules, 2014 read with various clarifications/amendments issued by Ministry of Corporate Affairs & DPE guidelines, the company has undertaken various activities as per the CSR Policy. The programmes / initiatives / line with the Schedule-VII of the Companies Act-2013, which are duly incorporated in CSR policy and forms the guiding principle for all our programmes. The Board of Directors of your company has Board Level Committee on Corporate Social Responsibility and Sustainable Development (CSR & SD) (please refer Corporate Governance Report) in line with the provisions of Section135 of the Companies Act, 2013. The Committee has formulated and recommended CSR Policy to the Board indicating the projects/activitiesto be undertaken by the company as specified in Schedule Act, 2013.

31.2 Y our company has been very conscious about its responsibilities towards society. Your company has also ventured into backward/ under developed areas in Andhra Pradesh and Telangana to undertake Corporate Social Responsibility (CSR) activities by sponsoring various schemes.

31.3 T he core areas of focus under CSR are Health Care, Nutrition, Education & Literacy, Skill Development & Sustainable Livelihoods, Sanitation, Safe Drinking Water etc. Your company also adopted villages in Andhra Pradesh and Telangana State under Corporate Social Responsibility initiative and the focus is on the necessities of human life health, water and other conveniences.

31.4 T he CSR and SD activities are monitored periodically by the Committee and a detailed activities undertaken during the year 2024-25 is enclosed at Annexure-I. 31.5 D uring the year 2024-25, the CSR & SD obligation was 1288.23 lakh. Against the total CSR obligation, the company has incurred an expenditure of 1334.13 lakh and achieved 100% CSR target amount required under the provisions of Companies Act, 2013. CSR activities being undertaken are placed on Company's website https://bdl-india.in/csr-projects

T he company has a Board approved Risk Management Policy. The policy aims at elimination or reduction of risk exposures through identification and analysis of various types of risks and facilitating timely action for taking risk mitigation measures. policy envisages that all programs, project reviews will highlight the progress of risk mitigation plans till the closure and signing off the mitigation plans. P ursuant to the Reg. 21 of SEBI (LODR) Regulations, 2015, the company has constituted a Risk Management Committee. details of Committee and its terms of reference, Risk Management Policy etc. are set out in the Corporate Governance Report.

I n accordance with the provisions of the Companies Act, 2013, Annual Return of the company for the year under report is available on the company's website https://bdl-india.in/annual-reports

T here are no materially significant related party transactions during the year under review which may have a potential with the interest of the Company at large. Thus, disclosure in Form AOC-2 is not required. Members may refer to the notes to the accounts for details of related party transactions. The policy for related party transaction has been website https://bdl-india.in/sites/default/files/PolicyonRelatedPartyTransactions_1.pdf

D etails of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statement.

Y our company, being a Defence PSU, the disclosure of informationwith respect to conservation of energy, technology absorption, foreign exchange earnings and outgo under the provisions of Section 134(3)(m) read with Rule 8(3) of the Companies (Accounts) Rules, 2014 (as amended) is not required as the Ministry of Corporate Affairs vide Notification GSR No.680 (E) dated 4 September 2015 has granted exemption to Defence Public Sector Undertaking.

D uring the year, your company as a part of energy conservation measures, procured and installed LED lights (14032 Nos.), BLDC

Fans (744 Nos.), 5 Star Rated ACs (74 Nos.), IE3 Motors (30 Nos.), e-mobility (2 wheelers -3 Nos. & 4 wheelers 5 Nos.). By installing the above, your company has adopted energy conservation measures across BDL. BDL had installed two 5 MW solar power plants of each (Land based) and 200 KW (Rooftop) inside the premises at Kanchanbagh and Bhanur respectively. Further, planned to install 0.5 MW solar power plant (rooftop) at Visakhapatnam unit.

Y our company had put in place all required internalcontrolsandsystemstomeetthecanonsoffinancial propriety. External audit firms are appointed to ensure their adequacy and report thereon. Detailed analysis of reports of Internal Audit Firms as well as reports of Internal Audit Department of your company is placed before the Audit Committee for its review and advice. The adequacy of internal control procedures is being reviewed and reported by Statutory Auditors in their Audit Report. The necessary disclosures have been made in Notes to Accounts. Your company being a Government Company is subject to Government Audit also.

M/s. Tej Raj & Pal, Chartered Accountants, Hyderabad were appointedasStatutoryAuditorsofthecompanyforthefinancial

Year 2024-25 by the Comptroller & Auditor General of India. The Auditors have audited the Accounts and does not contain any qualification,reservation T he Auditors' Report on the financial statements for the financial year 2024-25 and the Comments of Comptroller and Auditor General of India (C&AG) under Section 143 (6) of the Companies Act, 2013 are appended to the Annual Report.

Your company appointed M/s. Narasimha Murthy & Co., Cost Accountants, Hyderabad as Cost Auditors for the FY 2024-25 for the audit of the cost records of the Company. The company maintains cost records as specified by the Central Government under section 148(1) of the CompaniesAct,2013inrespectofitsmanufacturingactivities.

P ursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (as amended), M/s. C.V.Reddy K & Associates, Practicing Company Secretaries ( PCS

Registration No.7976) has conductedSecretarialAuditofthecompanyforthefinancial year 2024-25. The Secretarial Audit Report is appended to the Annual Report.

I n compliance with Regulation 24A of the SEBI Listing Regulations and Section 204 of the Act, the Board at its meeting on 27 May, 2025, has approved the appointment of M/s. C.V.Reddy K & Associates, Practicing Company Secretaries, a peer reviewed firm (Firm Registration No.6517/2025) as Secretarial Auditors of the Company for a term of five consecutive years commencing from FY 2025-26 till FY 2029-30, subject to approval of the Members at the ensuing AGM.

As per the requirements of SEBI Listing Regulations and DPE Guidelines, the CEO/CFO certificate has been obtained and placed before the Audit Committee and the Board.

D uring the year, neither the Statutory Auditor nor the Secretarial Auditor have reported to the Audit Committee/Board under Section 143(2) of the Companies Act, 2013, any instance of fraud committed against the Company by its officers or employees, the details of which needs to be mentioned in the Board's Report.

M anagement Discussion and Analysis Report required under the SEBI (LODR) Regulations, 2015 and also under the DPE

Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs), is attached to this Report asAnnexure II.

42.1 C orporate Governance is about application of best management practices, compliance of laws and adherence to ethical standards to achieve Company's objective of enhancing stakeholders' value and discharge of social responsibility. The Company has a well-established, transparent and fair administrative set up to provide for professionalism and accountability. 42.2 As per the guidelines on Corporate Governance for CPSEs issued by DPE vide its OM No. 18 (8)/2005-GM, dated 14 May 2010 and in terms of the SEBI (LODR) Regulations, 2015, Report on Corporate Governance along with Certificate on compliance of conditions on Corporate Governance from a Practicing Company Secretary are attached to this report as

Annexure-III.

42.3 Q uarterly and Yearly compliance reports on Corporate Governance are being forwarded to Stock Exchanges and MoD in the prescribed format. 42.4 T he Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India on Meetings of the Board of Directors and General Meetings.

42.5 N o proceedings are made or pending under the Insolvency and Bankruptcy Code, 2016 and there is no instance of onetime settlement with any Bank or Financial Institution.

42.6 T here has been no change in the nature of business of the Company.

T he Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 has been notifiedin the company. In line with the Guidelines received from time to time, necessary actions have been taken to prevent Sexual Harassment of Women at Workplace. The BDL CDA Rules applicable to Officers and the Certified Standing Orders applicable to Workmen have the required provisions in this regard. The Internal Complaints Committees as per Section 4 of the Act have been put in place. During the year 2024-25, no sexual harassment complaints were received by your company.

T he information required to be provided to citizens under Section 4(1)(b) of Right to Information Act, 2005 is placed on Company's Website https://bdl-india.in//sites/default/files/Info-on-BDL.pdf . It contains general information of the company, functions,powers and duties of employees/officers, decisions making process, rules, regulations, the company, directory of the Company's Officers, pay scales of officers/ employees and procedure for seeking information and inspection of records. The company has nominated a Central Public Information Officer of Senior Manager Level to attend to queries and appeals. D uring the year 2024-25, the CPIO has received 185 applications/queries, out of which 173 applications have been disposed-off and 9 (Nine) application is transferred to other Public Authority. 3 (Three) RTI queries are under process. Further, out of 19 appeals received, 17 are disposed-off by Final Appellate Authority and 2 (Two) are under process as on 31 March 2025.

P ursuant to the provisions of the Section 177(9) of the Companies Act, 2013 read with Rule (7) of the Companies (Meeting of the Board & its Power) Rules, 2014 (as amended) and DPE Guidelines for CPSEs, the Board of Directors had approved the policy on Whistleblower/Vigil Mechanism and the same was hosted on website of the company https://bdl-india.in/sites/default/files/ WBP.pdf. The policy inter-alia provides a direct access to the Chairman of the Audit Committee. E mployees are encouraged to raise any of their concerns by way of whistle blowing and none of the employees have been denied access to the Audit Committee.

T he Securities and Exchange Board of India (SEBI) has mandated inclusion of Business Responsibility and Sustainability Report ("BRSR") as part of the Annual Report based on market capitalization. Your Company has prepared a comprehensive policy framework for BRSR, after studying the SEBI (LODR) Regulations, 2015 (as amended) requirements and keeping in view the business and governance environment in which BDL as a Defence PSU operates. The company's BRSR for the year is available on the BDL's website at https://bdl-india.in/sites/default/files/BRSR-24-25.pdf

I n terms of SEBI (LODR) Regulations, 2015 (as amended), dividend distribution policy has been adopted by your company to set out the parameters and circumstances that will be taken into account by the Board in determining the distribution of dividend to its shareholders and/or retaining the profit into the business. The policy is available on the BDL's website https://bdl-india.in/ sites/default/files/DividendDistributionPolicy_1.pdf .

48. ACKNOWLEDGEMENT: extended and guidance provided 48.1 Y ourDirectors gratefullyacknowledgeandexpresstheirappreciationfor the cooperation by various Government Agencies, including the Ministry of Defence, DPSUs, Department of Defence Production, DRDO

Laboratories, Central Government Departments, State Governments of Telangana and Andhra Pradesh, Quality Assurance Agencies of the Government of India, and other PSUs. Their support has been invaluable to the company, and your Directors are grateful for the assistance received from them on various occasions.

48.2 T he company would like to extend its sincere appreciation to the Comptroller & Auditor General of India, the Principal Director of Commercial Audit & Ex-officio Member, Audit Board, Statutory Auditors, Bankers, and Suppliers for their cooperation, support, and guidance. Their contributions have been instrumental in ensuring the smooth functioning and financial integrity of the company.

48.3 T he Directors take this opportunity to express their deep appreciation for the valuable contributions and cooperation of the employees at all levels. Their dedication, hard work, and commitment have played a crucial role in propelling the company to greater heights and sustaining its growth trajectory. The Directors recognize and acknowledge the employees' efforts and extend their gratitude for their continued supportinthefuture.

1. Brie f outline on CSR Policy of the Company.

BDL is concerned and conscious aboutitsresponsibilitiestowards society. The company has its Corporate Social Responsibility

(CSR) policy aligned with provisions of the Companies Act 2013 and is spending 2% of the average net profits of the immediate three preceding financial years towards CSR activities. BDL shall strive to fully exploit its core resource abilities in the implementation of CSR activities, also to align CSR to extend possible strategies CSR activities which can be better monitored through in-house expertise. The company would endeavor to adopt and integrated approach to address the community, societal and environmental concerns by taking up a range of following activities which shall be taken up strategically in project mode in focused manner to the extent possible. The core areas of focus under CSR are Healthcare, Nutrition, Education & Literacy, Skill Development and Sanitation etc. As per DPE Guidelines, BDL has also ventured into Aspirational Districts / under developed areas in Telangana, Andhra Pradesh and other states undertake CSR activities. Our commitment to these CSR activities in unwavering and will continue to work towards making a positive impact on the society. Some of the major projects are: S ahara Hostel for Veer Naaris, Vishakhapatnam H ealthy Baby Nutrition Support (3000 kits) by ABV Foundation,

S mart Classrooms in Vizianagaram District and Visakhapatnam, District of AP STERRAD 100S GAS PLASMA STERILIZER to MNJ & Regional Cancer Centre, Hyderabad C onstruction of Choultry (III floor) + Lift at MNJ & Regional Cancer Centre, Hyderabad C ritical Care Ambulance to Military Hospital, Secunderabad

M edical Infrastructure at Healthcare Centre at Kumuram Bheem Asifabad of TS, Parvathipuram & Gajapathinagaram of AP F itment of Cochlear Implants to the Children with Hearing Impairment through ALIMCO of Telangana and Andhra Pradesh

State

BDL was awarded the following awards:-i) "G lobal CSR Excellence & Leadership Awards in recognition of "Quality of Education" and "Concern for Health". ii) G row Care India CSR Excellence Leadership Award Concern for Health.

2. Com position of CSR Committee:

3. P rovide the web-link(s) where Compositionof CSR committee, on the website of the company website https://bdl-india.in/csr

4. P rovide the executive summary along with web-link (s) of Impact assessment of CSR projects carried (3) of rule 8, if applicable (attach the report).

CSR Provision for the FY 2024-25 is 1369.02 lakh Set-off Previous Year is 80.79 lakh and net provision is 1288.

The details of the projects executed during 2024-25 are as follows:

( In Lakh)

I mpact Assessment of the CSR Projects for the FY 2021-22 & 2022-23 completed and available on website https://bdl-india.in/csr

5. D etails of CSR provision of the Company for the year 2024-25:

6. D etails of CSR amount Spent for the year 2024-25:

(e) CSR amount spent or unspent for the financial year:

(f) Ex cess amount for set-off, if any,

7. D etails of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

8. W hether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Year: Yes I f Yes, enter the number of Capital assets created / acquired F urnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in Financial Year

( In Lakh)

9. S pecify the reasons(s) if the company has failed to spend two per cent of the average net profit as per sub-section (5) of 135: N/A