Bharat Heavy Electricals Limited has appointed its statutory and branch auditors for the financial year 2026-27. The Comptroller & Auditor General of India issued the appointment order on September 8, 2026, pursuant to Section 139 of the Companies Act, 2013.

The firm appointed K Venkatachalam Aiyer & Co and K S Dua & Co as joint statutory auditors. The company also designated five firms as branch auditors for various operational units across India.

Auditor Appointments

The CAG notification outlines the specific audit responsibilities for each firm. The joint statutory auditors will handle the consolidation of accounts and specific corporate offices.

Branch Auditors

Five firms have been appointed to audit specific branch units. This includes a newly appointed auditor for the Ranipet unit.

• Sanjay Srivastava & Co: Bhopal (Heavy Electricals Plant Bhopal, Power Sector Western Region Nagpur)
• Ganesan and Company: Chennai (HP Boiler Plant Trichy)
• Y C R J & Associates: Bengaluru (Electronics Division, Electric & Photovoltaic Division)
• Sarath & Associates: Hyderabad (Heavy Power Equipment Plant Hyderabad, Corporate R&D Hyderabad)
• S Venkatram & Co LLP: Chennai (Boiler Auxiliary Plant Ranipet, Power Sector Southern Region)

S Venkatram & Co LLP is newly appointed for FY26-27. The supplementary test audit remains with the Director General of Audit, Power.

What the Numbers Show

The appointment structure indicates a continued reliance on multiple specialized audit firms to cover BHEL's geographically dispersed operations. The inclusion of a new branch auditor in Chennai suggests an expansion or restructuring of audit coverage for the southern region plants.

Bharat Heavy Electricals received notices from the Bombay Stock Exchange and National Stock Exchange imposing a fine of ₹11,03,300 each for non-compliance with SEBI Listing Obligations and Disclosure Requirements regulations. The penalties relate to governance lapses during the quarter ending June 2026.

The company disclosed the receipt of notices dated August 25, 2026, citing violations of specific clauses under the SEBI (LODR) Regulations, 2015. The fines are inclusive of GST.

Governance Lapses

The non-compliances stemmed from issues in the composition of the Board and various statutory committees as on June 30, 2026. Key regulatory breaches included:

• Board Composition: Violation of Regulation 17(1), as the number of Non-executive Directors or Independent Directors was less than 50% of the actual Board strength. This included a failure to have at least one independent woman director.
• Committee Composition: Non-compliance with Regulations 18, 19, 20, and 21 regarding the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Risk Management Committee respectively, effective from June 2, 2026.

During the reported quarter, BHEL had only one Independent Director on its Board up to June 1, 2026. From June 2, 2026, there were no Independent Directors on the Board.

Waiver Proposal

BHEL stated it is proposing to seek a waiver of the fines levied by the stock exchanges. The company cited the Standard Operating Procedure circular issued by the exchanges as the basis for this request.

As a Government Company, BHEL noted that its Directors, including Independent Directors, are appointed by the Government of India. The company confirmed it is regularly engaging with the government to ensure the appointment of the requisite number of Independent Directors to achieve compliance with the regulations.