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

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25. Subsequent to settlement of liabilities of REC between
MPSEB and CSEB on bifurcation of erstwhile State of MP,
there is a legal dispute between them regarding sharing of
dues, as a result of which CSEB has been claiming refund of
approx. Rs.16,000 lacs plus interest which if accrues shall
be payable by MPSEB.
26. The expenses of Rs.643.98 lacs incurred up to 2006-07 on
RGGVY implementation were adjusted out of interest earned
on such funds. The Corporation had approached MOP for
regularization of above adjustments which is still pending.
The management considers that amount is still recoverable
from Govt. of India.
27. The pay revision of the employees of the Corporation is due
w.e.f. 1st January 2007. Pending final calculation of revised
pay scales (including perks) as notified by Govt. of India
and approved by Board of Directors an estimated additional
provision Rs. 2,026.24 lacs based on average salary (Previous
year Rs. 463.16 lacs) had been made towards wage revision
arrears during the year and accordingly Rs. 3,306.24 lacs
(previous year Rs. 1,280 lacs) is cumulatively available
toward provision for wage revision including for non
executive employee for whom no such notification is
available but there arrear have also been considered in line
with such notification. Actuarial valuation of employees
benefits and incentive have been carried out considering
the estimated revised wages.
28. Details of provision as required in AS-29
(Rs. In lacs)
As at As at
31/03/2010 31/03/2009
(a) Interim Dividend
As per last Balance Sheet - -
Addition during the year 25759.80 17173.20
Amounts paid/utilized
during the year 25759.80 17173.20
Closing Balance - -
(b) Proposed Dividend
As per last Balance Sheet 21466.50 25759.80
Addition during the year 34561.07 21466.50
Amounts paid/utilized
during the year 21466.50 25759.80
Closing Balance 34561.07 21466.50
(c) Corporate Dividend Tax
As per last Balance Sheet 3648.23 4377.88
Addition during the year 10117.19 6566.81
Amounts paid/utilized
during the year 8025.26 7296.46
Closing Balance 5740.16 3648.23
29. The Corporation has adopted AS15 (revised 2005)
‘Employees Benefit’. Defined employee benefit scheme are
as follows:
a. Provident Fund
Corporation pays fixed contribution of Provident Fund at
pre-determined rates to a separate trust which invests the
funds in permitted securities. The trust is required to pay a
minimum rate of interest on contribution to the members of
the trust. The fair value of the assets of the Provident fund
including the returns of the assets thereof, as at 31st March,
2010 is greater than the obligation under the defined
contribution plan.
b. Gratuity
The Corporation has a defined benefit gratuity plan. Every
employee is entitled to gratuity as per the provision of the
payment of Gratuity Act. The scheme is funded by the
Corporation and is managed by separate trust. The liability
of Gratuity is recognized on the basis of actuarial valuation.
c. Post-Retirement Medical Facility (PRMF)
The corporation has Post Retirement Medical Facility and
Settlement benefits under which entitled employee
(including spouse) are covered as per Corporation’s rule. This
is recognized in the profit & loss account on the basis of
actuarial valuation.
d. Leave Travel Concession (LTC)
The Corporation has a scheme of providing LTC to employees
and their dependents. This is recognized in the profit & loss
account on the basis of actuarial valuation.
e. Other Defined Retirement Benefit (ODRB)
The Corporation has a scheme for settlement at the time of
superannuation at home town for employees and
dependents. This is recognized in the profit & loss account
on the basis of actuarial valuation.