REC- 1-51.p65 - Rural Electrification Corporation Ltd.

102
CONSOLIDATED
35. The Corporation has taken office accommodations and space
for ERP Data Centre. These are classified as operating lease.
Lease payment in respect of these amounting to Rs.177.97
lacs is shown under the head ‘Administration Expenses’ in
Schedule 15. Future lease payments in respect of these lease
agreements are as under:
(Rs. in lacs)
Maturity profile of For Data Centre For
future minimum
lease rent payments
for ERP Accommodation
Not later than one year 39.89 136.67
Later than one year and
not later than 5 years 154.93 601.27
Later than 5 years Nil 376.66
Total 194.82 1114.60
36. As part of hedging strategy, the company has executed in
some cases Interest Rate Swap on fixed interest rate domestic
rupee borrowings to lower cost by taking benefit of interest
rate movement. The INR value of the outstanding borrowings
on which such Swaps have been executed is Rs. 125,000
lacs. as on 31.03.2010.
In respect of foreign currency borrowings, the company has
executed cross currency swaps to fully hedge the risk of
exchange rate and interest rate variation. The outstanding
position of such cross currency swaps as at 31st March 2010.
No. of Borrowings outstanding as on INR
Contracts 31.03.2010 in foreign currency Equivalent
3 JPY 40,319 Million 165,865 Lacs
1 Euro 64.16 Million 41,772 lacs
37.
The portion of Foreign Currency Loans swapped into Indian
rupee is stated at the rate fixed in the swap transactions,
and not translated at the year end rate.
The Bond Series and other secured borrowings are secured
by a charge on the receivables, both present and future, in
favour of IDBI Trusteeship Services Ltd. and IL&FS Trust
Company Ltd., on the basis of joint hypothecation agreement
dated 25th January 2008. However, certain specific
receivables of Rs.4,30,509 lacs are hypothecated in favour
of IL&FS Trust Company Ltd. in terms of that agreement.
Refinance loan of Rs.87,000 lacs availed from IIFCL shall
also be covered under the same agreement with regard to
pooling of securities and IIFCL shall have pari-passu charge
on the receivables charged to these Trustees.
38. The Capital Adequacy Ratio of the Rural Electrification
Corporation Ltd. as on 31st March 2010 is 16.05% (previous
year 11.60%).
39. No loan has been rescheduled during the current year. The
movement of the loans rescheduled in the earlier years are
as under:-
Rs. In Lacs.
Particulars As at No. of As at No. of
31.03.2010 accounts 31.03.2009 accounts
Opening balance 9 11
Principal 2,28,029.89 2,33,649.93
Interest 1,01,169.91 1,10,172.55
Additions during
the year 0
Interest accrued
Received during
the year *
30,237.55 34,630.97
Principal 29,681.03 5,620.05
Interest 55,150.67 43,633.61
Closing balance 8 9
Principal 1,98,348.86 2,28,029.88
Interest 76,256.78 1,01,169.91
* Also includes one (previous year two) fully prepaid cases.
40. REC Transmission projects Ltd. has not yet commenced
commercial operation.
41. The subsidiary companies are wholly owned by the holding
company. The Key Management Personnel of these
companies are employees of the holding company deployed
on part time basis.
The details of such key management personnel are as follows:
REC Transmission Projects Company Limited
S. Name Designation Date of Date of
No. Appointment Separation
1. Sh. P. Uma Chairman & 01.03.2008 Continuing
Shankar Director
2. Sh. Rama
Raman
Director 08.01.2007 Continuing
3. Sh. Ajeet
Kumar
Agarwal
Director 27.12.2008 Continuing
4. Sh. Prakash
J Thakkar
Director 08.01.2007 Continuing
North Karanpura Transmission Company Limited
S. Name Designation Date of Date of
No. Appointment Separation
1. Sh. Prakash Chairman & 30.12.2008 Continuing
J Thakkar Director
2. Ms. Valli
Natrajan
Director 23.04.2007 Continuing
3. Ms. Harinder
Kaur Chani
Director 23.04.2007 Continuing
4. Sh. T.S.C.
Bosh
Addl. Director 09.09.2009 Continuing
5. Sh. V.K.Singh Addl. Director 09.09.2009 Continuing