REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
REC- 1-51.p65 - Rural Electrification Corporation Ltd.
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20<br />
To<br />
The Shareholders,<br />
The Directors have the pleasure in presenting the Forty First<br />
Annual Report together with the Audited Accounts of the<br />
Company for the financial year ended 31st March, 2010.<br />
1. PERFORMANCE HIGHLIGHTS<br />
1.1 The highlights of performance of the Company for the year<br />
2009-10 were as under with comparison of previous year’s<br />
performance:-<br />
Parameter 2009-10 2008-09<br />
(Rs. in crore) (Rs. in crore)<br />
Loans sanctioned<br />
Disbursements (including<br />
45357.36* 40745.84*<br />
subsidy under RGGVY) 27127.14 22277.86<br />
Recoveries 12496.12 9796.97<br />
Total Operating Income 6549.76 4757.17<br />
Profit before tax 2649.19 1920.11<br />
Profit after tax<br />
* Excluding subsidy under RGGVY.<br />
2001.42 1272.08<br />
1.2 Financial Performance<br />
The total operating income of the company for the year<br />
increased by 38% to Rs. 6549.76 crore from Rs. 4757.17<br />
crore during the previous year. The profit before tax<br />
increased by 38% to Rs.2649.19 crore from Rs. 1920.11<br />
crore for the previous year and the profit after tax increased<br />
by 57% to Rs. 2001.42 crore from Rs. 1272.08 crore for<br />
the previous year.<br />
1.3 Dividend<br />
In addition to interim dividend of Rs.3.00 per share paid<br />
in January, 2010, your Directors are happy to recommend<br />
a final dividend of Rs.3.50 per share for the year 2009-10.<br />
The total dividend for the year will work out to Rs. 6.50<br />
per share as against Rs. 4.50 per share paid last year. The<br />
total dividend pay-out for the year will amount to<br />
Rs.603.21 crore.<br />
<strong>REC</strong> declares final dividend of Rs. 214.67 crore for financial year 2008-09.<br />
The dividend cheque is handed over by Shri P. Uma Shankar, CMD, <strong>REC</strong><br />
to Hon’ble Union Minister of Power, Shri Sushilkumar Shinde on<br />
25 th September, 2009.<br />
DI<strong>REC</strong>TORS’ REPORT<br />
41st ANNUAL REPORT 2009-10<br />
1. 4 Further Public Offering (FPO) of Shares<br />
In February 2010 the Company made Further Public<br />
Offering (FPO) of 171,732,000 equity shares of face value<br />
of Rs. 10 each for cash at prices determined through the<br />
alternate book-building method under Part D of Schedule<br />
XI of the Securities and Exchange Board of India (Issue of<br />
Capital and Disclosure Requirements) Regulations, 2009.<br />
The Issue comprised of a fresh issue of 128,799,000 equity<br />
shares by the company and an Offer for Sale of 42,933,000<br />
equity shares by the President of India, acting through<br />
Ministry of Power, Government of India, as selling<br />
shareholder. The Shares were issued to Non-Institutional/<br />
Retail Individual Investors at Rs. 203/- per equity shares,<br />
to employees of the Company at Rs.193/- per equity shares<br />
and to QIB category including mutual funds at Rs. 206/-<br />
& above as per bids submitted by them. The Issue got a<br />
phenomenal response and it was oversubscribed by 3.14<br />
times. The total number of applications received were<br />
57858. The fresh equity shares were allotted on 5th March<br />
2010 and the total amount raised by the Company through<br />
FPO was Rs. 2647.53 crore. The proceeds of the fresh issue<br />
of equity shares have been utilized for the purpose of the<br />
business of the Company as mentioned in the offer<br />
document. Trading in equity shares of the Company issued<br />
under FPO commenced on the National Stock Exchange<br />
of India Limited and Bombay Stock Exchange Limited on<br />
8th March 2010, and requisite Listing Fees have been paid<br />
to each of these Stock Exchanges.<br />
In the Post-FPO scenario, the shareholding of the<br />
Government of India has reduced from 81.82% to 66.80%<br />
and the balance 33.20% is held by public.<br />
1.5 Share Capital<br />
The Issued and Paid up Share Capital increased from<br />
Rs. 858.66 crore to Rs.987.46 crore as on 31.03.2010 after<br />
FPO, against the Authorized Capital of Rs.1200 crore, and<br />
an amount of Rs.2499.18 crore (net of Issue expenses of<br />
Rs.19.55 crore) has been taken to Security Premium<br />
Account.<br />
2. LOANS SANCTIONED<br />
The Company sanctioned loans worth Rs.45357.36 crore<br />
during the year 2009-10, as against Rs.40745.84 crore in<br />
the previous year excluding subsidy under RGGVY. The<br />
state and category-wise break-up of loans sanctioned<br />
during the year are given in enclosed Tables-1 and 2<br />
respectively. The cumulative amount of sanctions made<br />
since inception upto 31.3.2010 was Rs.266775.59 crore<br />
including subsidy under RGGVY. The cumulative statewise<br />
position of sanctions up to the end of 2009-10 is given<br />
in enclosed Table-3.<br />
3. DISBURSEMENTS<br />
A total sum of Rs.27127.14 crore was disbursed during<br />
the year 2009-10 as against Rs. 22277.86 crore in the<br />
previous year including subsidy under RGGVY. The<br />
cumulative amount disbursed since inception upto<br />
31.3.2010 was Rs.113533.13 crore excluding subsidy<br />
under RGGVY. The state-wise disbursements and<br />
repayment by borrowers during the year together with<br />
cumulative figures and outstandings as on 31.3.2010 are<br />
given in enclosed Table-4.
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