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

33.
up Share Capital has increased from Rs.85,866 lacs to
Rs.98,745.90 lacs and an amount of Rs.249,918.17 lacs (net
of Issue expenses of Rs.1,955.19 lacs) has been taken to
Securities Premium Account. Proceeds of the fresh issue of
Equity shares have been utilized for the purposes mentioned
in the Offer Document.
The Expenditure amounting to Rs.912.77 lacs incurred on
ERP system has been capitalized during the year w.e.f. 24th
October 2009. The life of the Software has been considered
as five years taking into consideration the fast technological
developments for amortization. The residual value is
considered as Nil.
34. For Segment Reporting as per Accounting Standard 17 issued
by the Institute of Chartered Accountants of India (ICAI),
the Corporation’s operations are classified into three business
segments viz. Generation Loans, transmission & Distribution
Loans and Others. The corporation does not have any
geographical segments. The Corporation operates only in
domestic geographical segments. Segment report for the year
ended 31st March 2010 is as under :
(Rs. in Lacs)
Sl. Particulars Year Ended Year Ended
No. 31.03.2010 31.03.2009
a. Segment Revenue
1. Generation Loans 2,51,383.31 1,50,698.45
2. T & D Loans 3,43,912.46 2,72,254.16
3. Others 75,464.51 70,175.19
Total 6,70,760.28 4,93,127.80
b. Segment Results
1. Generation Loans 1,13,713.91 49,569.10
2. T & D Loans 1,33,679.24 1,17,796.74
3. Others 32,252.34 36,047.51
Total 2,79,645.49 2,03,413.35
c. Unallocated Expenses 14,726.06 11,402.72
d. Profit Before Tax. 2,64,919.43 1,92,010.63
e Provision for Tax 64,777.85 64,802.87
f. Profit After Tax 2,00,141.58 1,27,207.76
g. Segment Assets
1. Generation Loans 23,84,757.07 18,59,147.42
2. T & D Loans 36,41,732.67 28,39,523.12
3. Others 7,48,536.22 6,27,398.33
Total 67,75,025.96 53,26,068.87
h. Segment Liabilities
1. Generation Loans 20,38,372.36 15,89,107.23
2. T & D Loans 31,12,772.91 24,27,083.87
3. Others 6,39,811.73 5,36,269.05
Total 57,90,957.00 45,52,460.15
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 Corporation 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:-
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