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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 17, 16:00
156.65 0.25 (0.16%)
Volume
AVERAGE VOLUME
5-Day
662,406
10-Day
442,940
30-Day
346,746
463,611
  • Prev. Close

    156.40

  • Open Price

    156.30

  • Bid Price (Qty.)

    156.65 (4)

  • Offer Price (Qty.)

    156.65 (2)

NSE Live

Sep 17, 15:56
157.05 0.75 (0.48%)
Volume
AVERAGE VOLUME
5-Day
5,352,101
10-Day
4,482,574
30-Day
4,104,125
7,064,461
  • Prev. Close

    156.30

  • Open Price

    156.55

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    157.05 (3970)

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 2009 and also the Profit & Loss Account and the Cash Flow Statement of the Company for the year ended 31st March 2009 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 (as amended) 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: 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 to the extent applicable; v) Vide notification No. 2/5/2001-CL.V 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 more specifically to the note no. 31 of schedule 17 regarding change in accounting policy by way of increasing the monetary limits in respect of prepaid and prior period expenditures having no impact on net profit of the company, 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 2009. 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, 2009 1. a) The Company has maintained fixed assets records for the year under review. b) The Company has a phased programme of physical verification of its fixed assets, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, substantial assets were physically verified by the management during the period. Discrepancies noticed on such verification have been properly dealt with in the books of accounts. c) In our opinion and according to the information and explanation given to us, there was no substantial disposal of fixed assets during the year. 2. The Company, being Non-banking Financial Company, does not have any inventory. 3. a) According to information & explanation given to us, the company has granted unsecured loan to two of its subsidiary companies, and two fellow subsidiary companies of RECTPCL who are listed in the register maintained u/s 301 of companies Act 1956.The maximum amount involved during the year was Rs. 268.72 Lacs and the year end balance of loans granted to such companies was Rs.200.65 Lacs. There is no stipulation as to repayment of principal amount. However interest is being claimed on the basis of general lending rate of Rural Electrification Corporation Ltd applicable for T&D Scheme. Hence the same is prima facie not prejudicial to the interest of the Company. 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, clause 4 (iii) (f) and (g) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. 4. 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 including Loan accounting; Loan pricing being not linked to rating linked policy in certain cases; Review of T&D lending norms prescribing appropriate debt equity ratios; adoption of control records regarding status of loan documents including formulation of legal manual ; 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. 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. The Company has not accepted any deposits from public to which the provisions of sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under, apply. 7. 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. In our opinion Internal Audit needs to be further strengthened with identification of critical areas for risk based audit. 8. To the best of our knowledge and as explained, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub section (1) of section 209 of the Companies Act, 1956, for the products/services of the Company. Accordingly, clause 4 (viii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. 9. 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. 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 31.03.2009 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 Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess, which has not been deposited on account of dispute. 10. 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. Accordingly, clause 4 (x) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company. 11. 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 as at the balance sheet date. 12. The Company has maintained records and documents in respect loan granted by it to various State Electricity Boards, Transmission, Distribution and Generation companies including independent power producers on the basis of security including collateral security by way of pledge of share and other security. 13. In our opinion and according to the information and explanation given to us, 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 (as amended) are not applicable to the company. 14. In our opinion and according to the information and explanation given to us, 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 (as amended) are not applicable to the Company. 15. In our opinion and according to the information and explanation given to us the Company has not given guarantee for loans, taken by others, from banks or financial institutions. 16. In our opinion and according to the information and explanation given to us the term loan has been applied for the purpose for which they were raised. 17. According to information and explanation given to us and on overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term deployment/investment. 18. 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. According to the information and explanation given to us, during the period covered by our audit report, the company had issued 99302 Institutional bonds of Rs. 10 Lacs each and 2,525,233 Capital Gain tax exemption bonds of Rs. 10,000/- each. The company has created security in respect of Institutional & capital gain tax exemption bonds in the form of charge on current assets (book debts) and legal mortgage on the immovable properties of the Company at Mumbai & Delhi. 20. The Company has not raised any monies by issue of securities to public during the year. Consequently, this clause on disclosure on end use of money raised is not applicable. 21. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the management, we report that 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 (Suresh Chandra) Place: New Delhi Partner Dated: 25.05.2009 Membership. No. 82023.