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REC Ltd.

BSE: 532955 | NSE: RECLTD |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE020B01018 | SECTOR: Finance - Term Lending Institutions

BSE Live

Sep 24, 16:00
152.60 -2.75 (-1.77%)
Volume
AVERAGE VOLUME
5-Day
323,083
10-Day
492,745
30-Day
362,028
114,805
  • Prev. Close

    155.35

  • Open Price

    156.70

  • Bid Price (Qty.)

    151.15 (5)

  • Offer Price (Qty.)

    152.60 (2)

NSE Live

Sep 24, 15:59
152.60 -2.80 (-1.80%)
Volume
AVERAGE VOLUME
5-Day
2,137,631
10-Day
3,744,866
30-Day
3,647,271
3,309,615
  • Prev. Close

    155.40

  • Open Price

    155.60

  • Bid Price (Qty.)

    152.60 (1149)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Auditor's Report

1. We have audited the attached Balance Sheet of RURAL ELECTRIFICATION CORPORATION LIMITED as at 31st March 2007 and also the Profit & Loss Account and the Cash Flow Statement for the year ended 31st March 2007 on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable to the Corporation. 4. Further to our comments in the Annexure referred in paragraph 3 above, we report that: 4.1. Raising of amounts by way of issue of bonds amounting to Rs.14168.17 Crore, partly secured against assets valuing Rs.38.50 Lacs, thus resulting in raising of Public Deposits without appropriate approval / registration with RBI and is also not in accordance to the requirements of trustee to the Bonds holder as intimated vide their recent letter dated 06th March 2007. 4.2. Attention is invited to the following Notes in Schedule 18: - 4.2.1 Note No. 7 regarding non-registration of certain Properties amounting to Rs. 6172.83 Lacs (P. Year 5754.23 Lacs) included under the head Land-Freehold & Buildings in the name of company. 4.2.2 Note No. 8 regarding overdue loans to certain RE Cooperative societies. 4.2.3 Note No.12 regarding non-approval of Pay Scales of the officer by the Government. 4.2.4 Note No. 25 regarding interest Subsidy received under AG&SP Scheme & the non-ascertainment of difference between indicative and actual rates. 4.2.5 Note No. 31 regarding recognition of income in terms of Accounting Policy No. 2.7 5. Further to our comments in the Paragraph 4.1 & 4.2 above, we report that i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; ii) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of such books; iii) The Balance Sheet, Profit & Loss account and cash flow statement dealt with by this report are in agreement with the books of accounts; iv) In our opinion, the Balance Sheet, Profit & Loss account and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, v) Vide notification No. 2/5/2001-CLV dated 22.03.2002 of the Department of Company Affairs, Government of India, Government Companies have been exempted from applicability of the provisions of Section 274(1)(g) of the Companies Act, 1956. vi) In our opinion and to the best of our information and according to explanations given to us, the said statements of accounts read together with notes and accounting policies thereon give the information required by the Companies Act 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In the case of the Balance Sheet of the State of Affairs of the Company as at 31st March 2007. b) In the case of Profit & Loss Account, of the Profit of the Company for the year ended on that date; and c) In the case of the Cash Flow Statement, of the Cash flows for the year ended on that date. ANNEXURE TO THE AUDITORS REPORT (Referred to in the paragraph 3 of our Report of even date on the Statement of Accounts of RURAL ELECTRIFICATION CORPORATION LIMITED as at 31st March, 2007) 1. In respect of its Fixed Assets: - (a) The Company has maintained fixed assets records for the year under review (b) The fixed assets of the company have been physically verified by the management during the year ending 31st March 2007; however no reconciliation were carried out. In the absence of such reconciliation, we are unable to comment upon discrepancies if any. (c) Substantial parts of fixed assets have not been disposed off during the year. 2. In respect of its Inventories: - The Company, being Non-banking Financial Company, does not have any inventory. 3. In respect of its loans given or taken u/s 301 of The Companies Act, 1956: - a) According to information & explanation given to us, the company generally has not granted any loan secured or unsecured loan to companies, firm & other parties in the register maintained u/s 301 of companies Act 1956. b) According to the information & explanation given to us, the Company has not taken any loans, secured or unsecured, from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act 1956. Accordingly, paragraphs 4 (iii)(f) and (g) of the order are not applicable. 4. In respect of its internal control: - In our opinion and according to information & explanations given to us, internal controls in certain areas are commensurate with the size of the company & the nature of its business. However in certain areas internal control needs further strengthening like financial accounting; Loan pricing being linked to rating linked policy; Review of T&D lending norms prescribing appropriate debt equity ratios; adoption of control records regarding status of loan documents; Receipt, disbursement & utilization of grants received under various schemes; monitoring of loans given to various SEBs / DISCOMS / TRANSCOS / GENCOS including obtaining search reports for charges created against the loans given. 5. In respect of its transaction u/s 301 of The Companies Act, 1956: - According to information and explanations given to us, the Company has not entered into any transaction of business with the Companies or Entities covered u/s 301 of the Companies Act, 1956. 6. In respect of its Deposit from public u/s 58A and 58AA of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975: - Company has issued bonds which are partly unsecured and are covered under the definition of public deposits thus attracting the provisions of Non Banking Financial Companies Acceptance of Deposit (Reserve Bank) Direction 1998 read with section 45-1 (bb) of the Reserve Bank of India Act 1934. As explained to us, company has made an application to Reserve Bank of India through Ministry of Power to change the status of REC as Deposit Accepting NBFC from Deposit non- accepting NBFC. 7. In respect of its Internal Audit System- Corporation is having internal audit department responsible for carrying out the Internal Audit of various departments at head office and at project offices at periodical intervals as per the approved audit plan. Internal Audit has been conducted as per approved plan and there is considerable improvement as compared to earlier years, Internal Audit needs to be further strengthened with identification of critical areas for risk based audit in view of growth in the business of the company and coverage of deficiencies in accounting. 8. In respect of its Cost Record u/s 209(1) (d) of The Companies Act, 1956: - The Corporation being Non-Banking Financial Company, the provisions of Section 209(1) (d) of the Companies Act, 1956 are not applicable. 9. In respect of its Statutory Dues: - (a) The Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, investors education protection fund, employees state insurance, income tax, wealth tax and other material statutory dues applicable to it except: - (i) Non-deduction & consequently non- deposit of TDS on interest accrued in respect of certain Bonds, which are transferable by way of endorsement & delivery. (ii) Service Tax on banking & financial services amounting to Rs. 87.25 Lacs (Since deposited). (b) According to information and explanation given to us, no undisputed amounts payable in respect of income tax & wealth tax were in arrears as at 31.03.2007 for a period of more than six months from the date they became payable (c) According to information and explanation given to us, there are no dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess, which has not been deposited on account of dispute. 10. In respect of its Accumulated Losses and Cash Losses: - The Company does not have any accumulated losses. The Company has also not incurred cash losses during the financial year covered by our audit and the immediate preceding financial year. 11. In respect of its default in repayment of dues to Financial Institution or Bank: - In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or bondholders. 12. In respect of its Loans & Advances Granted: - We are informed that the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13. In respect of special statute applicable to Chit Fund / Nidhi Company: - In our opinion the company is not a chit fund or a Nidhi Mutual Benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the company. 14. In respect of Dealing/Trading in Share Security, Debenture and other investment: - In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003 are not applicable to the Company. 15. In respect of its Guarantee for Loan taken by others: - According to the information and explanation obtain by us the Company has not given guarantee for loans, taken by others, from banks or financial institutions. 16. In respect of its end use of Term Loan: - In our opinion the term loan has been applied for the purpose for which they were raised. 17. In respect of its use of Funds: - According to information and explanation given to us and on overall examination of the Balance Sheet of the Company, we report that prima facie funds raised on short-term basis have been used for long-term deployment/investment. However in the absence of statement of residual maturity pattern of Loans & Advances granted/taken we are unable to comment on the same. 18. In respect of its Preferential Allotment of Shares: - According to information and explanation given to us, the Company has not made preferential allotment of shares to parties and companies covered in the register under Section 301 of the Act. 19. In respect of its Creation of Securities for Debenture issued: - According to the information and explanation given to us, during the period covered by our audit report, no securities for debentures were created by company except securities in the form of legal mortgage on the immovable properties of the Company at Mumbai having book value of only Rs.38.50 Lacs have been created against Capital Gain Tax Exemption Bonds and Infrastructure Bonds amounting to a sum of Rs. 14168.17 Crores. 20. In respect of its end use of money raised by Public issue: - The Company has not raised any money by way of Public Issue. 21. In respect of its Fraud on or by the Company: - According to information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For G.S. MATHUR & CO. Chartered Accountants (Rajiv Wadhawan) Place: New Delhi Partner Dated: 30.05.2007 Membership No. 91007.