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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

Oct 28, 14:41
151.35 -5.00 (-3.20%)
Volume
AVERAGE VOLUME
5-Day
340,326
10-Day
958,343
30-Day
697,266
292,514
  • Prev. Close

    156.35

  • Open Price

    156.35

  • Bid Price (Qty.)

    151.25 (1)

  • Offer Price (Qty.)

    151.35 (1407)

NSE Live

Oct 28, 14:41
151.30 -4.85 (-3.11%)
Volume
AVERAGE VOLUME
5-Day
6,159,189
10-Day
7,681,051
30-Day
5,693,956
3,449,700
  • Prev. Close

    156.15

  • Open Price

    156.00

  • Bid Price (Qty.)

    151.25 (1677)

  • Offer Price (Qty.)

    151.30 (2281)

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 2012 and also the Statement of Profit & Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's 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 account as required by law have been kept by the Corporation so far as appears from our examination of such books;

iii) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

iv) In our opinion, the Balance Sheet, Statement of Profit & Loss 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 possible.

v) Vide notification No. 2/5/2001-CL.V dated 22.03.2002 of the Department of Corporate 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 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 31th March 2012.

b) In the case of Statement of Profit & Loss, 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, 2012

(i) (a) The Corporation has maintained fixed assets records to show full particulars including quantitative details and situation of its fixed assets.

(b) The fixed assets of the corporation were physically verified by the management during the year ended on 31st March,2012; as certified by the management, no material discrepancies has been found on such physical verification.

(c) In our opinion and according to the explanations given to us, during the year, the Corporation 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 Corporation being Non Banking Financial Company, does not has any inventory; as such this clause is not applicable.

(iii) (a) According to the information and explanations given to us, the Corporation has not granted any loans secured or unsecured to any Corporation, 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 Corporation has not taken any loans, secured or unsecured, from any Corporation, 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 Corporation and the nature of its business. However in certain areas internal control needs further strengthening like 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, regular updating of Loan module and generation of various reports from loan module in ERP to have better control over loan assets. 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 Corporation 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 Corporation 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) In our opinion the Corporation has an internal audit system generally commensurate with its size and nature of its business.

(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

Corporation. Accordingly, this clause of the order is not applicable to the Corporation.

(ix) (a) The Corporation is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, investor's 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 2012 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 Corporation does not have any accumulated losses as at 31st March, 2012. The Corporation 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 Corporation has not defaulted in repayment of dues to a financial institution, bank or bond holders as at the Balance Sheet date.

(xii) In our opinion and according to the information and explanations given to us, the Corporation 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 shares and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the Corporation 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 Corporation.

(xiv) In our opinion and according to the information and explanations given to us, the Corporation is not dealing or trading in shares, securities, debenture and other investment, therefore this clause of the order is not applicable to the Corporation.

(xv) In our opinion and according to the information and explanations given to us, the Corporation 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 Corporation.

(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 Corporation, 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 Corporation 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, the corporation has created security in respect of Institutional Bonds, Tax Free Secured Bonds and Capital Gain Bonds in the form of charge on receivables and Registered Mortgage on the immovable properties of the Corporation at Maharashtra, Delhi & Chennai.

(xx) The Corporation has made a public issue of Tax Free Bonds of face value of Rs. 1000/- each aggregating to Rs. 3000.00 Crores during the financial year 2011-12. The bonds have been allotted on 27.03.2012 and the issue proceeds had been kept in designated Public Issue accounts. The issue proceeds could not be utilized till the Balance Sheet date as the proceeds of the funds raised became available to the corporation only on the listing of the bonds on Bombay Stock Exchange (BSE) on 04.04.2012.

(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 Corporation, noticed or reported during the year, nor have we been informed of such case by the management.

For P.K. Chopra & Co. For Bansal & Co.

Chartered Accountants Chartered Accountants

Firm Regn No. 006747N Firm Regn No. 001113N

(K.S. Ponnuswami) (R.C. Pandey)

Partner Partner

M. No. 070276 M. No. 070811

Place: New Delhi

Date: 23rd May 2012