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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96<br />
CONSOLIDATED<br />
SCHEDULE ‘17’ CONSOLIDATED NOTES ON ACCOUNTS<br />
1. The subsidiary companies considered in the consolidated<br />
financial statements are:<br />
Name of the Country of Proportion of<br />
Subsidiaries<br />
- <strong>REC</strong> Transmission<br />
Incorporation ownership<br />
interest<br />
Projects Co. <strong>Ltd</strong>. (RTPCL)<br />
- <strong>REC</strong> Power Distribution<br />
India 100%<br />
Co. <strong>Ltd</strong>. (RPDCL)<br />
- North Karanpura<br />
Transmission Co. <strong>Ltd</strong>. (NKTCL)<br />
(A wholly owned<br />
subsidiary of RTPCL)<br />
India 100%<br />
(Since sold after March 31, 2010)<br />
- Talcher II Transmission<br />
Company <strong>Ltd</strong>. (TTCL)<br />
(A wholly owned<br />
subsidiary of RTPCL)<br />
India 100%<br />
(Since sold after March 31, 2010)<br />
- Raichur Sholapur<br />
Transmission Company <strong>Ltd</strong>.<br />
(A wholly owned<br />
India 100%<br />
subsidiary of RTPCL) India 100%<br />
2. EARNING PER SHARE (EPS)<br />
Particulars 2009-10 2008-09<br />
Net profit after tax (Rs. in lacs) 2,02,225.34 1,27,352.55<br />
Net Profit attributable to equity<br />
shareholders (Rs. in lacs) 2,02,225.34 1,27,352.55<br />
Weighted Average number of<br />
equity shares 86,78,34,723 85,86,60,000<br />
Basic and diluted<br />
earning per share (Rs.) 23.30 14.83<br />
Face Value per<br />
equity shares (Rs.) 10 10<br />
3. Contingent Liabilities not provided for in respect of:-<br />
(Rs. in lacs)<br />
S. Particulars As at As at<br />
No.<br />
(a) Claims against the <strong>Corporation</strong><br />
not acknowledged as debts,<br />
including Rs. 406.36 lacs pending<br />
in various courts including<br />
arbitration cases as on<br />
31.03.2010 (Previous year<br />
31.03.2010 31.03.2009<br />
Rs.3,460.53 lacs) and 494.49 3,469.37<br />
(b) Estimated amount of the contracts<br />
remaining to be executed on capital<br />
account and not provided for 599.26 1,247.75<br />
(c) Others 1,76,559.67 1,34,263.00<br />
The amount referred to in (a) above are dependent upon the<br />
outcome of settlement of court/arbitration cases.<br />
4.<br />
The amount under 1 (c) include Rs. 1,73,970 lacs against<br />
Letters of Comfort issued to various Banks for opening of<br />
Letters of credit to procure generation equipment against<br />
loan sanctioned by the <strong>Corporation</strong> to its borrowers, Rs<br />
1,557.65 lacs pertain to the difference in the interest rate<br />
being charged on private parties that have not been graded<br />
and whose loans are being charged at the highest rate<br />
applicable to the lowest graded borrowers, Rs.668.50 lacs<br />
against demand raised by the Income tax Department for<br />
Assessment Year 2008-09 against Notice u/s 143(1) of Income<br />
Tax Act and Rs. 363.52 lacs which was paid to the Income<br />
Tax Dept. against the demand raised by them on completion<br />
of assessment for AY 2006-07 for which appeal has been<br />
filed with CIT (Appeals) and the amount paid has been<br />
shown as Advance Income Tax in Current Liabilities and<br />
Provisions schedule in the Balance Sheet.<br />
Auditors’ Remuneration includes:<br />
(Rs. in lacs)<br />
S. Particulars Year ended Year ended<br />
No. 31.03.2010 31.03.2009<br />
a) Audit fees – Current year 20.34 *** 17.91<br />
b) Tax Audit Fee<br />
(*exclusive of Rs.2 lacs paid to<br />
Tax auditors for Tax Audit<br />
of FY 2008-09) * 4.85 2.50<br />
c) Reimbursement of expenses 0.39 *** 1.88<br />
d) Payment for Other services<br />
(**including for FPO<br />
certification which has been<br />
set off against Securities<br />
Premium A/c) ** 16.76 2.32<br />
Total 42.34 *** 24.61<br />
5.<br />
*** Payment to auditors for RTPCL, NKTCL & TTCL (total<br />
amounting Rs.0.85 Lacs) has been taken in CWIP<br />
The <strong>Corporation</strong> is registered with the Reserve Bank of India<br />
(RBI) as a Non-Banking Financial Company (NBFC) since<br />
1997-98. As per notification No. DNBS (PD), CC No. 12/<br />
D2.01/99-2000 dated 13.1.2000 of RBI, Govt. Companies<br />
conforming to Section 617 of the Companies Act have been<br />
exempted from applicability of the provisions of RBI Act<br />
1934 relating to maintenance of liquid assets and creation<br />
of Reserve Funds and the Directions relating to acceptance<br />
of public deposits and prudential norms. The said<br />
notification is also applicable to <strong>REC</strong>, being a Govt. Company<br />
conforming to Section 617 of the Companies Act, 1956.<br />
Moreover in view of the non applicability of the provisions<br />
of section 45 (I) C of the RBI Act, 1934 regarding creation of<br />
Reserve Fund, the Reserve Fund is not created.<br />
6. In order to bring all “systemically important” governmentowned<br />
NBFCs within the framework of the prudential norms,<br />
the RBI had advised our <strong>Corporation</strong> on December 12, 2006<br />
to submit a ‘road map’ for compliance with various elements<br />
of the regulations governing NBFCs. However, the RBI had<br />
noted that the date from which our <strong>Corporation</strong> was required<br />
to comply with such regulations would be decided later.<br />
While our <strong>Corporation</strong> has submitted the said ‘road map’,