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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 2010 and also the Profit & Loss Account and the Cash Flow Statement for the year ended 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 Company. 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 be best of our knowledge and belief were necessary for the purposes of our audit; ii) In our opinion, proper books of account 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 account; 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 financial statements read together with Note No. 21(B) in schedule 17 of Notes on Accounts regarding Deferred Tax Liability that after considering the opinion given by various concerned authorities, and also the practice followed by other similarly placed Institutions of not creating Deferred Tax Liability (DTL) on account of special reserve created and maintained under Section 36(1)(viii) of the Income Tax Act 1961, the Company is of the opinion that there is no requirement for DTL as per AS 22 of ICAI. Accordingly, the Company has not created Deferred Tax Liability (DTL) of Rs. 155.65 Crore on account of special reserve created and maintained under Section 36(1)(viii) of the Income Tax Act, 1961, for the year ended on 31st March, 2010 and has also reversed the DTL of Rs. 964.57 Crore created in earlier years on this account as per Notes on Accounts, note no. 21(B). The reversal of DTL is done by crediting General Reserve by Rs. 638.80 Crore for the financial years upto 2005-06 and through Profit and Loss Appropriation by Rs. 325.77 Crore for the financial year 2006-07 to financial year 2008-09. Had the company followed the same accounting treatment regarding creation of DTL as in earlier years, the profit after tax for the year ended 31.03.2010 would have been Rs. 1845.77 Crore against reported profit of Rs. 2001.42 Crore and Reserve & Surplus would have been Rs. 8,972.66 Crore against reported Reserve & Surplus of Rs. 10,092.88 Crore as on 31.03.2010, together with other 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 2010. 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 Paragraph (3) of Our Report of even date on the Accounts of Rural Electrification Corporation Limited for The Year Ended on 31st March, 2010 (i) (a) The Company has maintained fixed assets records to show full particulars including quantitative details and situation of its fixed assets. (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 year. Discrepancies noticed on such verification have been properly dealt with in the books of account. (c) In our opinion and according to the explanations given to us, during the year, the Company has not disposed off substantial part of fixed assets therefore going concern is not affected . Hence this clause of the order is not applicable. (ii) The company being Non Banking Financial Company, does not has any inventory. (iii) (a) According to the information and explanations given to us, the Company has not granted any loans secured or unsecured to any company, firm or other parties covered in register maintained under section 301 of Companies Act, 1956. Accordingly clause 4(iii)(a), the clause 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the order are not applicable. (b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured, from any company, firm, or other parties covered in the register maintained under section 301 of the Companies Act 1956. Accordingly clause 4(iii)(e), the clause 4(iii)(f) and 4(iii)(g) of the order are not applicable. (iv) In our opinion and according to information & explanations given to us, internal controls are generally commensurate with the size of the Company and the nature of its business. However in certain areas internal control needs further strengthening like loan accounting, loan pricing being not linked to rating linked policy in certain cases, control records regarding status of loan documents including formulation of legal manual; Receipt, disbursement & utilization of grants/subsidy received under various schemes; monitoring and supervision of loans given to various SEBs/DISCOMS/ TRANSCOS/GENCOS including obtaining search reports for charges created against the loans given. During the course of audit we have not come across any major failure in internal control system. (v) According to information and explanations given to us, the Company has not entered into any contract with the Companies or Entities covered u/s 301 of the Companies Act, 1956. Accordingly this clause of the order is not applicable. (vi) According to the information and explanations given to us, the Company has not accepted any deposit from public to which the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the Rules framed there under, apply. (vii) Company is having internal audit department responsible for carrying out the internal audit of various departments at head office and at project office at periodical intervals as per the approved audit plan. The internal audit has been carried out for part of the accounting year. In our opinion internal audit needs to be further strengthened with identification of critical areas for risk based audit and frequency of coverage in respect of loan department. (viii) 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, this clause of the order is not applicable to the Company. (ix) (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, service tax and other material statutory dues applicable to it. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, service tax, wealth tax were in arrears as at 31st March 2010 for a period of more than six months from the date they became payable. (c) According to the information and explanations given to us, there are no dues of income tax, wealth tax, service tax and cess which has not been deposited on account of dispute. (x) The Company does not have any accumulated losses as at 31st March, 2010. The Company has also not incurred cash losses during the financial year covered by our audit and in the immediate preceding financial year. Accordingly, this clause of the order is not applicable. (xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, bank, bond holders as at the Balance Sheet date. (xii) In our opinion and according to the information and explanations given to us, the Company has maintained records and documents in respect of loan granted by it to various State Electricity Board, 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. (xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund or a nidhi or mutual benefit fund or society, therefore, this clause of the order is not applicable to the company. (xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debenture and other investment, therefore this clause of the order is not applicable to the company. (xv) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. Accordingly this clause of the order is not applicable to the Company. (xvi) In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which they were raised. (xvii) According to the information and explanations given to us and on the 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 investment. (xviii)According to the information and explanations given to us, during the year the Company has not made any preferential allotment of shares to companies, firms or other parties needs to be listed in the register maintained u/s 301 of the Companies Act. (xix) According to the information and explanations given to us, during the year covered by our audit report, the company had issued 1,35,295 institutional bonds of Rs. 10 Lacs each and 30,57,776 capital gain bonds of Rs. 10000/-. The Company has created security in respect of Institutional and 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 except in case of 43934 institutional bonds of 91 to 93 series for which registration of charge is in process. (xx) The Company has raised monies by issue of fresh equity share of 12,87,99,000 of Rs. 10 each at a premium of about Rs. 195/- during the year. The management has disclosed the end use of money raised in notes on accounts. (xxi) During the course of our examination of the books of account carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management. For Bansal & Co. For K.G. Somani & Co. Chartered Accountants Chartered Accountants Firm Regn. No. 001113N Firm Regn. No. 006591N ( D.S Rawat) (Bhuvnesh Maheshwari) Partner Partner M. No.83030 M. No. 88155 Place: New Delhi Date : 19.05.2010