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

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64 SCHEDULE ‘15’ ADMINISTRATION EXPENSES Year ended (Rs. in Lacs) Year ended 31.03.2010 31.03.2009 Rent- office 163.13 175.16 Rates and Taxes 89.12 40.68 Electricity and Water Charges 64.96 54.91 Insurance Charges 2.93 4.44 Repairs and Maintenance - Building 159.30 242.32 - ERP & Data Centre 121.99 - - Others 58.04 339.33 29.53 271.85 Printing and Stationary 155.01 192.50 Travelling and Conveyance - Directors 81.88 55.53 - Others 533.76 615.64 468.24 523.77 Postage, Telegram and Telephone 183.61 106.56 Publicity & Promotion Expenses 222.01 202.75 Auditors’ Remuneration 26.51 23.11 Miscellaneous Expenses 746.26 324.66 Consultancy Charges 147.58 73.53 Donations & Charity 10.00 246.59 Loss on Sale of Assets 1.52 0.04 Total 2,767.61 2,240.55 SCHEDULE ‘16’ BOND/ DEBT INSTRUMENT ISSUE EXPENSES Year ended (Rs. in Lacs) Year ended 31.03.2010 31.03.2009 Bonds Handling Charges 439.91 321.29 Bonds Brokerage A/c 667.04 366.68 Bonds Stamp Duty 157.33 21.05 Others 243.45 270.48 Total 1,507.73 979.50 SCHEDULE ‘17’ NOTES ON ACCOUNTS 1. Contingent Liabilities not provided for in respect of:- S.No. Particulars As at 31.03.2010 (Rs. in lacs) As at 31.03.2009 (a) Claims against the Corporation not acknowledged as debts, including Rs. 406.36 lacs pending in various courts including arbitration cases as on 31.03.2010 (Previous year Rs.3,460.53 lacs) and 494.49 3,469.37 (b) Estimated amount of the contracts remaining to be executed on capital account and not provided for 599.26 1,165.97 (c) Others 1,76,559.67 1,34,263.00
The amount referred to in (a) above are dependent upon the outcome of settlement of court/arbitration cases. The amount under 1 (c) include Rs. 1,73,970 lacs against Letters of Comfort issued to various Banks for opening of Letters of credit to procure generation equipment against loan sanctioned by the Corporation to its borrowers, Rs 1,557.65 lacs pertain to the difference in the interest rate being charged on private parties that have not been graded and whose loans are being charged at the highest rate applicable to the lowest graded borrowers, Rs.668.50 lacs against demand raised by the Income tax Department for Assessment Year 2008-09 against Notice u/s 143(1) of Income Tax Act and Rs. 363.52 lacs which was paid to the Income Tax Dept. against the demand raised by them on completion of assessment for AY 2006-07 for which appeal has been filed with CIT (Appeals) and the amount paid has been shown as Advance Income Tax in Current Liabilities and Provisions schedule in the Balance Sheet. 2. The Corporation is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC) since 1997-98. As per notification No. DNBS (PD), CC No. 12/ D2.01/99-2000 dated 13.1.2000 of RBI, Govt. Companies conforming to Section 617 of the Companies Act have been exempted from applicability of the provisions of RBI Act 1934 relating to maintenance of liquid assets and creation of Reserve Funds and the Directions relating to acceptance of public deposits and prudential norms. The said notification is also applicable to REC, being a Govt. Company conforming to Section 617 of the Companies Act, 1956. Moreover in view of the non applicability of the provisions of section 45 (I) C of the RBI Act, 1934 regarding creation of Reserve Fund, the Reserve Fund is not created. 3. In order to bring all “systemically important” governmentowned NBFCs within the framework of the prudential norms, the RBI had advised our Corporation on December 12, 2006 to submit a ‘road map’ for compliance with various elements of the regulations governing NBFCs. However, the RBI had noted that the date from which our Corporation was required to comply with such regulations would be decided later. While our Corporation has submitted the said ‘road map’, to Ministry of Power for onward submission/approval of RBI, it has sought exemption from compliance with the regulations governing NBFCs till the period of the 12th Five Year Plan (FY2017). Further, on December 13, 2006 and February 21, 2009, our Board of Directors approved our adoption of prudential norms. Our prudential norms limit our exposure, separately, for private and state sector borrowers. For private sector borrowers, our exposure is restricted to any single borrower for up to 25% of our Corporation’s owned funds and to a single group of companies for up to 50% of our Corporation’s owned funds. In respect of loans to state sector borrowers, our maximum credit exposure varies from 100% to 250% of our Corporation’s net worth, depending on entity appraisal and status of on bundling of the respective state utilities. 4. There has been shortfall in creation of Special Fund by some of the RE Cooperative Societies amounting to Rs. 301.45 lacs (Previous year Rs.500.89 lacs) and the societies are pursued to create the required Special Fund. 5. Balance confirmation has been received from most of the borrowers. 6. Income Tax as applicable in respect of Interest accrued on bonds is deducted at source at the time of actual payment of interest to the bond holders since such bonds are freely transferable. 7. The formalities regarding registration of conveyance deeds etc. in respect of some of the Land & Building acquired by the Corporation amounting to Rs. 3,630.58 lacs (Previous year Rs. 3,996.51 lacs) are in the process of completion. 8. In terms of Accounting Policy No. 10.2, the balances in respect of Interest Warrants Accounts (both for institutional and 54EC & Infra bonds) as on 31.03.2010 held in specified banks are Rs. 3,431.32 lacs (previous year Rs.5,025.32 lacs). 9. In the opinion of the management, the current assets, loans and advances appearing in the balance sheet have a value equivalent to the amount stated therein if realized during the ordinary course of business and all known liabilities have been provided. 10. Provision for impairment loss as required under Accounting Standard-28 on impairment of Assets is not necessary as in the opinion of management there is no impairment of the Corporation’s Assets in terms of AS-28. 11. The company has no outstanding liability towards Micro, Small and Medium undertakings. 12. No Bond Redemption Reserve (BRR) has been created since in terms of clarifications issued by the Department of Company Affairs, Govt. of India vide no.6/3/2001-CL.V dated 18.4.2002, BRR is not required to be created in the case of privately placed debentures issued by NBFC’s registered with the RBI under section 45-IA of the RBI (Amendment) Act, 1997. 13. During the year, the Corporation has reduced cost of borrowing to the extent of Rs.765.69 lacs (Previous year Rs. 420.16 lacs) on account of swap (coupon only) transaction linked to rupee borrowing. The Corporation had entered into various coupons only swap transactions and cross currency swap transactions. The Net Mark to Market position in respect of the above swap transactions as on 31.03.2010 is of Rs. 16,544.12 lacs (favourable) (Previous year Rs.24,271.25 lacs favourable). 14. Directors’ Remuneration: (Rs. in lacs) Particulars Year ended Year ended 31.03.2010 31.03.2009 Salaries and Allowances 75.53 44.33 Perquisites/reimbursement 10.10 15.18 Retirement Benefits Nil 6.70 Total 85.63 66.21 The Chairman and Managing Director and other whole time Directors have also been allowed to use Staff car including for private journey(s) up to a ceiling of 1000 kms per month on payment of monthly charges of Rs. 780/- per month as per DPE guidelines. Loans and Advances include Rs. 4.38 lacs (Previous year Rs.10.66 lacs) due from Directors of the Corporation, maximum amount outstanding during the year Rs.10.66 lacs (Previous year Rs.14.17 lacs). 65
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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
Page 16 and 17: 14 41st ANNUAL REPORT 2009-10 As me
Page 18 and 19: 16 Shri Venugopal N. Dhoot Dr. Devi
Page 20 and 21: 18 SHRI DEVENDER SINGH Government N
Page 22 and 23: 20 To The Shareholders, The Directo
Page 24 and 25: 22 crore and Fixed Assets of Rs.89.
Page 26 and 27: 24 (DSM), Municipal DSM, Bachat Lam
Page 28 and 29: 26 Sl. Programme No. of No. of No.
Page 30 and 31: 28 21.3 Four quarterly review meeti
Page 32 and 33: 30 Electricity Department of Manipu
Page 34 and 35: 32 41st ANNUAL REPORT 2009-10 TABLE
Page 42 and 43: 40 The performance orientation buil
Page 44 and 45: 42 As a listed company and a good c
Page 46 and 47: 44 (ii) The terms of reference of t
Page 48 and 49: 46 3.1.8 FPO Committee During the y
Page 50 and 51: 48 the Company are published in lea
Page 52 and 53: 50 (xi) Distribution of Shareholdin
Page 54 and 55: 52 SOURCES OF FUNDS Shareholders’
Page 56 and 57: 54 Authorised SCHEDULE ‘1’ CAPI
Page 58 and 59: 56 88th Series - 8.65% Redeemable a
Page 60 and 61: 58 SCHEDULE- ‘5’ FIXED ASSETS A
Page 62 and 63: 60 SCHEDULE ‘8’ DEFERRED TAX LI
Page 64 and 65: 62 SCHEDULE ‘11’ OPERATING INCO
Page 68 and 69: 66 15. Auditors’ Remuneration inc
Page 70 and 71: 68 25. Subsequent to settlement of
Page 72 and 73: 70 Changes in the Fair value of Pla
Page 74 and 75: 72 Rs. In Lacs. Particulars As at N
Page 76 and 77: 74 For the purpose of application o
Page 78 and 79: 76 In terms of our Report of even d
Page 80 and 81: 78 To The Members of Rural Electrif
Page 82 and 83: 80 by our audit and in the immediat
Page 84 and 85: 82 COMMENTS OF THE COMPTROLLER & AU
Page 86 and 87: 84 CONSOLIDATED SOURCES OF FUNDS Sh
Page 88 and 89: 86 CONSOLIDATED Authorised SCHEDULE
Page 90 and 91: 88 CONSOLIDATED 88th Series - 8.65%
Page 92 and 93: 90 CONSOLIDATED SCHEDULE- ‘5’ C
Page 94 and 95: 92 CONSOLIDATED SCHEDULE ‘8’ DE
Page 96 and 97: 94 CONSOLIDATED SCHEDULE ‘11’ O
Page 98 and 99: 96 CONSOLIDATED SCHEDULE ‘17’ C
Page 100 and 101: 98 CONSOLIDATED 21. Disclosure in r
Page 102 and 103: 100 CONSOLIDATED Amounts recognized
Page 104 and 105: 102 CONSOLIDATED 35. The Corporatio
Page 106 and 107: 104 CONSOLIDATED CONSOLIDATED SIGNI
Page 108 and 109: 106 AUDITORS’ REPORT TO THE BOARD
Page 110 and 111: 108 ADDRESSES OF REC OFFICES Sl. RE
Page 112 and 113: 110 Sl. REC Offices Addresses Telep
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REC- 1-51.p65 - Rural Electrification Corporation Ltd.

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