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

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106 AUDITORS’ REPORT TO THE BOARD OF DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS OF RURAL ELECTRIFICATION LIMITED AND ITS SUBSIDIARIES 1. We have audited the attached Consolidated Balance Sheet of M/s RURAL ELECTRIFICATION CORPORATION LIMITED (THE COMPANY) AND ITS SUBSIDIARIES as at 31st March 2010 and also the Consolidated Profit & Loss Account and the Consolidated 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. We report that the Consolidated financial statements have been prepared by the Company’s management in accordance with the requirements of Accounting Standard (AS) 21 Consolidated Financial Statements’, issued by the Institute of Chartered Accountants of India. 4. We did not audit the financial statements of subsidiaries of the Company. These companies are audited by other auditors whose reports were furnished to us. The audited financial statements of these companies reflects total assets of Rs. 54.10 Crore (Previous year Rs. 5.96 Crore) as at March 31st 2010, total revenue of Rs. 40.02 Crore (Previous year Rs. 5.27 Crore) for the year ended on that date. Our opinion, in so far as it relates to the amounts included in respects of these subsidiaries, is based solely on the audit reports of the auditors of the subsidiaries companies. 5. Subject to our comments, and based on our audit and on consolidation of report of other auditors on separate financial statements of the subsidiaries and to the best of our information and according to explanations given to us, we are of the opinion that the attached consolidated financial statements of Rural Electrification Corporation Limited and its Subsidiary Companies read with note 22(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. 22(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. 1866.60 Crore against reported Profit of Rs. 2022.25 Crore and Reserve & Surplus would have been Rs. 8996.58 Crore against reported Reserve & Surplus of Rs. 10116.80 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 Consolidated Balance Sheet of the State of Affairs of the Rural Electrification Corporation Limited and its Subsidiary Companies as at 31st March 2010. b) In the case of Consolidated Profit & Loss Account, of the Profit of the Rural Electrification Corporation Limited and its Subsidiary Companies for the year ended on that date; and c) In the case of the Consolidated Cash Flow Statement, of the Cash flows of Rural Electrification Corporation Limited and its Subsidiary Companies for the year ended on that date. 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
STATEMENT / INFORMATION IN AGGREGATE IN RESPECT OF EACH SUBSIDIARY COMPANY OF RURAL ELECTRIFICATION CORPORATION LIMITED (As advised by the Ministry of Corporate Affairs vide its letter No. 47/350/2010-CL-II dated 18th May, 2010 while conveying approval under Section 212 (8) of the Companies Act, 1956) S.No. Particulars REC Transmission RECPower North Karanpura Talcher II Raichur Sholapur Projects Company Distribution Transmission Transmission Transmission Limited Company Limited Company Limited Company Limited Company Limited (a) Capital 5.00 5.00 5.00 5.00 5.00 (b) Reserves 1,980.10 411.98 - - - (c) Total assets 5,248.95 1,379.04 232.49 189.20 31.66 (d) Total liabilities 5,248.95 1,379.04 232.49 189.20 31.66 (e) Details of investments (except in case of investment in subsidiaries) - - - - - (f) Turnover 3,000.35 1,001.87 - - - (g) Profit before taxation 2,999.70 157.05 - - - (h) Provision for taxation 1,019.60 53.40 - - - (i) Profit after taxation 1,980.10 103.65 - - - (j) Proposed dividend - 5.00 - - - 107
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CORPORATE OFFICE ZONAL OFFICES REGI
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2 CONSISTENT GROWTH OVER 10 YEARS P
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4 MISSION Mission & Objectives 41st
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6 PERFORMANCE HIGHLIGHTS 41st ANNUA
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8 ACKNOWLEDGEMENTS 41st ANNUAL REPO
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10 41st ANNUAL REPORT 2009-10 82(3)
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12 41st ANNUAL REPORT 2009-10 11. A
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14 41st ANNUAL REPORT 2009-10 As me
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16 Shri Venugopal N. Dhoot Dr. Devi
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18 SHRI DEVENDER SINGH Government N
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20 To The Shareholders, The Directo
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22 crore and Fixed Assets of Rs.89.
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24 (DSM), Municipal DSM, Bachat Lam
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26 Sl. Programme No. of No. of No.
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28 21.3 Four quarterly review meeti
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30 Electricity Department of Manipu
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32 41st ANNUAL REPORT 2009-10 TABLE
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40 The performance orientation buil
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42 As a listed company and a good c
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44 (ii) The terms of reference of t
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46 3.1.8 FPO Committee During the y
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48 the Company are published in lea
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50 (xi) Distribution of Shareholdin
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52 SOURCES OF FUNDS Shareholders’
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54 Authorised SCHEDULE ‘1’ CAPI
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Page 84 and 85: 82 COMMENTS OF THE COMPTROLLER & AU
Page 86 and 87: 84 CONSOLIDATED SOURCES OF FUNDS Sh
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Page 110 and 111: 108 ADDRESSES OF REC OFFICES Sl. RE
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REC- 1-51.p65 - Rural Electrification Corporation Ltd.

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