Rec Limited Annual Report

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Endless energy. Infinite possibilities.
('l'/'mI' ~ 'i5T \rolf) / (A Govemment of India Enterprise)
Regd. Office: Core4, SCOPE Complex, 7, Lodhi Road, New Delhi - 110003
Corporate Office: Plot No. 14, Near IFFCO Chowk Metro Station,
Sector-29 , Gurugram - 122001 (Haryana)
Tel : +91 124 444 1300 I Website : www . recindia.nic . in
CIN : L40101DL 1969GOI005095 I GST No.: 06AAACR4512R3Z3
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SEC-l 1187(2)/2023/1421 Dated: September 08,2023

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Listing Department, Corporate Relationship Department

National Stock Exchange ofIndia Limited BSE Limited
Exchange Plaza, Bandra Kurla Complex, I" Floor, Phiroze Jeejeebhoy Towers
Bandra East , Mumbai - 400 051. Dalal Street, Fort, Mumbai - 400 001.
Scri Code - RECL TD Scri Code - 532955
Sub: Annual Report of the Company for the financial year 2022-23.
Dear Sir(s),
This is in continuation of our earlier letter dated August 14, 2023 regarding
submission of Notice of 54th Annual General Meeting (AGM) & Annual Report for
the financial year 2022-23, and the letter dated August 26, 2023 for submission of
Addendum to the Notice of 54th AGM, kindly find attached herwith Annual Report
inter-alia containing notice and addendum to the notice of 54th AGM.
It is further informed that there is no change in the said Annual Report. The said
Annual Report is also hosted on the Company's website at the link:
"https:/ Irecindia.nic.inl annual-reports'.
~~\ljHCfjI;ft ~~~I This is for your information.
Jyoti Digitally signed by Jyoti Shubhra Amitabh

DN: c=IN, o=Personal, title=0573,
pseudonym=133065811914836276Dm3B82
Shubhra
69pXyOd3,
2.5.4.20=90de92ff366d85bfab279748dedfb1
a88a5af19e87ea57b3f19ab9d20d92f4e8,
postalCode=201301, st=Uttar Pradesh,
serialNumber=159303584c6c1556d495ded8
Amitabh
17d8acafb7052d4bc2ffef2356115a0e92ae00
ac, cn=Jyoti Shubhra Amitabh
Date: 2023.09.08 17:09:46 +05'30'
Regional Offices: Bengaluru, Bhopal, Bhubaneswar, Ghennai, Dehradun, Guwahati, Hyderabad, Jaipur, Jammu, Kolkata,
Lucknow, Mumbai, Panch kula, Patna, Raipur, Ranchi, Shimla, Thiruvananthapuram & Vijaywada
State Offices : Vadodara, Varanasi
Training Centre : REG Institute of Power Management & Training (REGIPMT), Hyderabad
Content
1. Company Information 2
2. Board of Directors 3
3. Directors’ Profile 4
4. Mission / Vision and Objectives 8
5. Senior Management Team 9
6. Five-year Performance 10
7. Message from CMD 13
8. Notice of AGM 18
9. Board’s Report 30
10. Management Discussion & Analysis Report 58
11. Report on Corporate Governance 66
12. Business Responsibility & Sustainability Report 95
13. Integrated Report 123
14. Secretarial Audit Report 126
15. Auditors’ Certificate on Corporate Governance 129
16. Annual Report on CSR Activities 130
17 Particulars of Contracts or Arrangements with Related Parties 148
18. Details of Debenture Trustees 150
19. Balance Sheet 158
20. Statement of Profit & Loss 159
21. Statement of Cash Flows 160
22. Statement of Changes in Equity 162
23. Notes to Accounts 166
24. Independent Auditors’ Report on Standalone Financial Statements 265
25. Non-Banking Financial Companies Auditors’ Report 274
26. Comments of C&AG of India on Standalone Financial Statements 275
27. Consolidated Financial Statements 276
28. Independent Auditors’ Report on Consolidated Financial Statements 389
29. Comments of C&AG of India on Consolidated Financial Statements 397
30. Details of REC Offices 398
1
Company Information
Board of Directors Shri Vivek Kumar Dewangan
Chairman & Managing Director
Shri Ajoy Choudhury
Director (Finance)
Board of Directors
Shri V.K. Singh Shri Piyush Singh
Director (Projects) Government Nominee Director
Shri Manoj Sharma Dr. Gambheer Singh

PFC Nominee Director Independent Director
Dr. Manoj Manohar Pande Dr. Durgesh Nandini

Independent Director Independent Director
Shri Narayanan Thirupathy

Independent Director
Chief Vigilance officer Shri Virender Kumar Adhana
Company Secretary Shri J.S. Amitabh
Corporate Identification Number L40101DL1969GOI005095

Shri Vivek Kumar Dewangan
Registered Office Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi-110003, India.
Tel: +91-11-4309 1500 / 1501
Corporate Office Plot no. I-4, Sector 29, Gurugram, Haryana-122001, India.
Tel: +91-124-444 1300
Corporate Website & Email www.recindia.nic.in | [email protected]
Equity Shares listed on National Stock Exchange of India Limited

BSE Limited
Depositories National Securities Depository Limited

Central Depository Services (India) Limited
Statutory Auditors S.K. Mittal & Co., Chartered Accountants

O.P. Bagla & Co. LLP., Chartered Accountants
Secretarial Auditors Hemant Singh & Associates, Company Secretaries Shri Ajoy Choudhury Shri V.K. Singh Shri Piyush Singh Shri Manoj Sharma
Director (Finance) Director (Projects) Government Nominee Director PFC Nominee Director
Bankers Axis Bank IndusInd Bank
Bank of Baroda Reserve Bank of India
HDFC Bank State Bank of India
HSBC Bank Yes Bank
ICICI Bank
Registrar & Transfer Agents For Equity Shares

Alankit Assignments Limited
205-208, Anarkali Complex, Jhandewalan Extension, New Delhi-110055
Phone: 011 - 42541234
Email: [email protected], [email protected]
Website: www.alankit.com
For Bonds
KFin Technologies Limited Beetal Financial & Computer Services (P) Limited
Selenium Tower B, Plot nos. 31 & 32 Beetal House, 3rd floor, 99 Madangir
Gachibowli Financial District, Nanakramguda Behind LSC, Opp. Dada Harsukhdas Mandir
Hyderabad-500032 New Delhi-110062
Phone: 1-800-309-4001 Phone: +91-11-2996 1281-83 Dr. Gambheer Singh Dr. Manoj Manohar Pande Dr. Durgesh Nandini Shri Narayanan Thirupathy
Email: [email protected], [email protected] Email: [email protected], [email protected] Independent Director Independent Director Independent Director Independent Director
Website: https://www.kfintech.com/ Website: www.beetalfinancial.com
2 3
Director’s Profile
Shri Vivek Kumar Dewangan is the Chairman & Managing Director of REC Limited since May Shri V.K. Singh is the Director (Technical) of REC Limited since July 15, 2022. Prior to his
17, 2022. He is an IAS officer (Manipur:1993) and holds B.E. in Electronics from NIT, Bhopal and elevation, he was serving as Executive Director in the Company. He holds a Bachelor’s Degree in
P.G. in Optoelectronics & Optical Communication from IIT, Delhi. Prior to joining REC, he was Electrical Engineering from IIT, Roorkee and has over 34 years of experience in the Indian power
Additional Secretary in the Ministry of Power, Government of India. sector. He joined REC on March 29, 2007 and prior to joining REC, he had worked in Power Grid
Corporation of India Limited and NTPC Limited.
During his illustrious IAS career, he has held various administrative positions in the areas of
Finance, Power & Energy, Petroleum & Natural Gas, Elections, Law & Justice, Commerce & As Director (Projects), he is responsible for all technical functions of REC, including project &
Industries, Minister’s Offices (Corporate Affairs, Agriculture & Food Processing Industries), entity appraisal of renewable energy, generation, transmission & distribution projects, power
Education, Human Resource Development, Sericulture, Agriculture & Cooperation, Economic sector value chain i.e. equipment manufacturing, coal block financing etc; and infrastructure
affairs, Economics & Statistics, Rural Development & Panchayati Raj, District Administration financing namely ports, airports, metro, hospitals, refinery etc; and financing activities
including sanction, disbursement and project monitoring, business development, Stressed
(Surguja & Raipur districts in Chhattisgarh and Senapati district in Manipur) and Revenue
Assets Management, Diversification and overall functioning of the Company. He is also
Administration. As CMD, he provides strategic vision and overall direction to REC for achieving
responsible for key operational areas of Procurement, Legal matters, IT system and Capacity
its corporate objectives.
building business through RECIPMT. He is guiding the Program Management Division towards
Shri Vivek Kumar Dewangan He is also the ex-officio Chairman of REC’s wholly-owned subsidiary viz. REC Power Development Shri V.K. Singh successful implementation of Government Programs.
(DIN: 01377212) and Consultancy Limited (RECPDCL). (DIN: 02772733)
He has rich experience in transmission project development & management, TBCB process,
Chairman & Managing Director Director (Projects) procurement of goods & services, construction of EHV sub-stations and transmission lines,
Shri Vivek Kumar Dewangan is holding Nil equity shares in REC. Further, he has no inter-se
relation with any other Director or Key Managerial Personnel of the Company. financial aspects like raising of bonds, commercial paper, ECB etc.
He is also a Director on the Board of REC Power Development and Consultancy Limited
(RECPDCL), a wholly owned subsidiary of REC.
Shri V.K. Singh is holding Nil equity shares in the Company. Further, he has no inter-se relation
with any other Director or Key Managerial Personnel of the Company.
Shri Ajoy Choudhury is the Director (Finance) of REC Limited since June 1, 2020. He is an Associate Shri Piyush Singh is Government Nominee Director on the Board of REC Limited since
Member of the Institute of Cost Accountants of India. He has over 35 years of experience in September 14, 2022. He is an IAS Officer (Maharashtra: 2000) and holds B. Tech degree in
the Indian power sector across diverse functions. He joined REC on April 16, 2007 and served Civil Engineering from lIT Delhi. Presently, he is posted as Joint Secretary (Thermal and Coal,
in various capacities and prior to joining REC, he had worked in various capacities in finance Distribution) in the Ministry of Power, Government of India.
discipline with Power Grid Corporation of India Limited and NHPC Limited.
He has worked in various capacities in District Administration, Department of Social Justice
As Director (Finance), he provides directions with respect to financial management and & Empowerment, Department of Health & Family Welfare and Department of Revenue,
operations of REC encompassing organizational and financial planning, formulation of financial Government of Maharashtra. He also served in Uttarakhand in Planning department,
policies, financial accounting, management control systems, lending operations, cash and Dehradun and has wide experience in the area of Public Administration and Planning.
fund management, corporate accounts, tax planning, mobilization of resources and liaison
Shri Piyush Singh is holding Nil equity shares in the Company. Further, he has no inter-se
with financial institutions & capital market players. He has been instrumental in implementing
relation with any other Director or Key Managerial Personnel of the Company
various systemic improvements in REC, including formulation of loan recovery guidelines, asset
liability management, resolution of stressed assets, improving communication and services to
customers and managing overall resources and treasury in an efficient manner.
Shri Ajoy Choudhury Shri Piyush Singh
(DIN: 06629871) He is also a Director on the Board of REC Power Development and Consultancy Limited (DIN: 07492389)
Director (Finance) (RECPDCL), a wholly owned subsidiary of REC. Government Nominee Director
Shri Ajoy Choudhury is holding 1,600 equity shares of `10/- each in the Company. Further, he
has no inter-se relation with any other Director or Key Managerial Personnel of the Company.
4 5
Shri Manoj Sharma has been appointed on the Board of REC Limited as the Nominee Director
of Power Finance Corporation Limited (PFC), with effect from July 11, 2023. He is a Chartered
Accountant with a degree in law (LLB) and currently working as Director (Commercial) in PFC.
He has more than 31 years of experience in power sector. In PFC, he has handled multiple
areas & domains including institutional appraisal & development, entity appraisal, legal &
documentation, taxation, budget, audit, preparation of financial statements & audit reports,
Dr. Durgesh Nandini has been appointed as Part-time Non-official Independent Director on
financial analysis, resource mobilization, debt syndication and consultancy assignments on
the Board of REC Limited with effect from December 30, 2021. She holds a Master of Arts from
financial/commercial aspects in power sector. During the last 3 decades, he has been associated
Gorakhpur University, Masters in Education from Maharshi Dayanand University, Rohtak and a
with entire spectrum of PFC’s loan assets, covering formulation of lending policies, putting in
doctorate degree in Political Science from Dr. B.R. Ambedkar University, Agra.
place a policy framework to guide appraisal with a structured format for financial analysis,
compliance with applicable regulatory and statutory frameworks, monitoring conditions, She has earlier served as Principal in a prestigious girls’ inter-college and has been a key
facilitating disbursement, resolution mechanism for stressed accounts. He is Chairman of PFC contributor in the field of education, through her involvement in editing of primary level
Projects Limited, a subsidiary of PFC, an SPV for submission of lenders’ backed resolution plan textbooks and training modules in the Department of Elementary Education, Government of
Shri Manoj Sharma by PFC for resolution of stressed assets. Haryana. She has rich and varied experience in addressing key social issues under the banner of
(DIN: 06822395) national level volunteer organization “Jagriti”.
Shri Manoj Sharma is holding Nil equity shares in the Company. Further, he has no inter-se
PFC Nominee Director relation with any other Director or Key Managerial Personnel of the Company. She is actively contributing as a social worker in the fields of health, women empowerment,
child development and environment preservation. At present, she is working on a project for
economic development of women and is cooperating with Aparajita Foundation for social
Dr. Durgesh Nandini
(DIN: 09398540) justice issues.
Professor Dr. Gambheer Singh has been appointed as Part-time Non-official Independent
Director on the Board of REC Limited with effect from November 15, 2021. He is MBBS from Independent Director Dr. Durgesh Nandini is holding Nil equity shares in the Company. Further, she has no inter-se
Gandhi Medical College, Bhopal and Master of Surgery from G.R. Medical College, Gwalior. He relation with any other Director or Key Managerial Personnel of the Company.
also holds life memberships of Association of Surgeons of India, Association of Breast Surgeons
of India and Indian Medical Association.
He is presently the Dean of Raipur Institute of Medical Sciences in Chhattisgarh. He has more
than 23 years of teaching experience, having served in G.R. Medical College, Gwalior and Pandit
Jawahar Lal Nehru Memorial Medical College, Raipur. He is running a 50-bedded multi-specialty
hospital in Raipur since 2008. The hospital is working on the highest standards of medical
specialty and is dedicated to the people of Chhattisgarh.
He is also working in the field of breast cancer awareness and organized more than 500 free
health camps in various parts of Chhattisgarh state especially in Gourela, Pendra Marwahi
(GPM) district for the needy and tribal people. He is regularly educating the villagers of GPM
Dr. Gambheer Singh
(DIN: 02003319) district, for plantation of medicinal trees, having numerous health benefits.
Independent Director He has also published more than 10 national and international papers in various index journals
and has been an examiner of under-graduate and post graduate examinations.
Dr. Gambheer Singh is holding Nil equity shares in the Company. Further, he has no inter-se
relation with any other Director or Key Managerial Personnel of the Company. Shri Narayanan Thirupathy has been appointed as Part-time Non-official Independent Director
on the Board of REC Limited with effect from March 6, 2023. He holds a Bachelor’s degree in
Economics from the University of Madras and is a popular Television debater and Social worker
from Tamil Nadu. He has been working for the development of poor, downtrodden people for
Dr. Manoj Manohar Pande has been appointed as Part-time Non-official Independent Director more than 35 years.
on the Board of REC Limited with effect from November 15, 2021. He is currently working as a
Shri Narayanan Thirupathy is the founder of a social forum called “Theervu” which means Justice,
family physician and social worker in Yavatmal, Maharashtra. He completed his graduation in
through which he has created awareness about the socio economic and industrial policies of
medicine and surgery from Amravati University, and subsequently trained in Naturopathy from
the country and popularised the concept of good governance with the people of Tamil Nadu.
the University of Delhi.
He is well known for his immense contribution to create peace, communal harmony and social
He works for the upliftment of neglected and vagabond community and slum dwellers justice.
in Vidarbha region of Maharashtra. He has helped in the rehabilitation of suicide hit farmer
Shri Narayanan Thirupathy is holding Nil equity shares in the Company. Further, he has no inter-
families, and is a pioneer in providing educational amenities to students from underprivileged
se relation with any other Director or Key Managerial Personnel of the Company.
communities. He is also at the helm of two NGOs, dedicated for the betterment of society since
past 15 years. Shri Narayanan Thirupathy
(DIN 10063245)
He heralded the production and distribution of Aayush Kadha, a potent potion for Covid-19
warriors, which helped in curbing the wrath of the pandemic. He is also an avid organic farmer Independent Director
Dr. Manoj Manohar Pande and agriculturist, having resorted to innovative farming techniques that have yielded low cost
(DIN: 09388430) farming practices and increment in soil fertility.
Independent Director Dr. Manoj Manohar Pande is holding Nil equity shares in the Company. Further, he has no inter-
se relation with any other Director or Key Managerial Personnel of the Company.
6 7
Mission / Vision and Objectives Senior Management Team
Shri Virender Kumar Adhana Shri T.S.C. Bosh Shri J.S. Amitabh Shri Fuzail Ahmed
Chief Vigilance Officer Executive Director Executive Director (Law) & Executive Director
(Technical) Company Secretary (Technical)
Shri Sanjay Kumar Shri R.P. Vaishnaw Shri Rahul Dwivedi Smt. Malathi Sundararajan
Executive Director Executive Director Executive Director Executive Director
(Finance) (Finance) (PMD) (Finance) & CRO
Shri Sanjay Kulshrestha Smt. Valli Natarajan Shri Daljeet Singh Khatri Shri Harsh Baweja
(Technical) (Technical) (Finance) (Finance)
Shri Rajesh Kumar Shri N. Venkatesan Shri Arun Kumar Tyagi Shri Kuldeep Rai
(Finance) & CEO - RECPDCL (Technical) (Finance) (Technical)
8 9
Five-year Performance
10 11
Five-year Performance
Particulars 2022-23 2021-22 2020-21 2019-20
(₹ in crore)
2018-19
Message from CMD
(As per IND-AS)
SHAREHOLDERS’ FUND (at the end of the year)
Equity Share Capital 2,633.22 1,974.92 1,974.92 1,974.92 1,974.92
Instruments entirely Equity in nature 558.40 558.40 558.40 - -
Other Equity/Reserves & Surplus 54,448.05 48,452.28 40,893.05 33,101.64 32,328.02
Net Worth 57,679.67 50,985.60 43,426.37 35,076.56 34,302.94
BORROWINGS (at the end of the year)
From Government of India/NSSF 10,000.00 10,000.00 10,000.00 10,000.00 5,000.00
Bonds/Debentures 1,98,115.65 1,83,291.97 2,04,119.67 1,88,538.25 1,71,803.83
From Financial Institutions 6,000.00 6,800.00 5,800.00 1,000.00 1,200.00
Foreign Currency Borrowings 78,440.04 65,957.45 47,486.43 44,378.49 31,368.12
Term Loans from Banks 56,298.20 42,878.32 29,938.58 18,899.78 18,550.00
Commercial Papers - - - 2,925.00 7,975.00
Short-Term/Demand Loans/Others 25,762.53 17,916.55 25,166.32 14,374.33 3,389.50
Total 3,74,616.42 3,26,844.29 3,22,511.00 2,80,115.85 2,39,286.45
Fund Mobilization (during the year) 86,984.00 73,962.93 99,244.53 84,358.12 69,383.22
FINANCING OPERATIONS (during the year)
Projects approved (in nos.) 562 370 441 727 914
Financial assistance sanctioned 2,68,460.54 54,421.76 1,54,820.87 1,10,907.99 1,15,957.35
Disbursements* 97,911.86 69,467.87 97,928.11 82,140.83 91,827.56
Repayments of Principal by borrowers 46,294.55 56,197.10 37,994.03 34,454.15 30,405.09
Outstanding at the end of the year 4,35,011.79 3,85,371.26 3,77,418.15 3,22,424.68 2,81,209.68
WORKING RESULTS (during the year)
Total Income 39,252.73 39,230.45 35,410.44 29,829.13 25,341.16
Dear Stakeholders, etc. Further, financing of sunrise sectors like Green Hydrogen, Green
Finance Costs including Net Exchange Loss, Fees & 24,867.99 22,868.69 21,829.29 21,380.39 16,197.11 Ammonia Projects, round the clock projects involving bundling of RE
Commission Expenses I am delighted to present the 54 Annual Report of your Company,
th
with thermal power and ethanol manufacturing projects are being
which showcases a fabulous year of remarkable achievements. It
Provisions and Contingencies/ Impairment on 114.91 3,473.31 2,419.62 889.56 240.33 actively pursued amongst others. At the same time, partially utilized
is with great pride, I share with you that your Company has been
financial instruments thermal power plants need to be retrofitted to offer additional
conferred Maharatna Status in September, 2022, enabling us with
flexibility (ramp-up/ ramp-down) which will help integrate these
Net Loss on fair value changes - - - - 348.52 greater operational and financial autonomy. This prestigious status
variable RE sources without impacting the grid stability.
allows strategic investments through Joint Ventures, Subsidiaries
Other Expenses 506.97 445.59 395.87 565.89 447.53 and Merger & Acquisition activities in India and abroad, thereby While posing faith in REC, Ministry of Power has also allowed our
accelerating growth and supporting the Government's vision for the Company to lend to non-power infrastructure & logistics sector
Depreciation 24.09 17.96 9.53 10.00 7.17
overall development of the country. to contribute to the accelerated development of our nation and I
Profit Before Tax 13,738.77 12,424.90 10,756.13 6,983.29 8,100.50 ecstatically report that during the first year itself, we have sanctioned
Aligning with energy transition initiatives of Government of India
more than ₹85,700 crore towards various projects spanning from
Provision for Taxation/Tax Expenses 2,684.13 2,378.98 2,394.35 2,097.13 2,336.78 for enhanced Nationally Determined Contributions (NDCs), REC is
Metro, Ports, Airports, Oil Refineries, Highways, Steel Infra to
committed to increase its present loan portfolio of Green Projects
Profit After Tax 11,054.64 10,045.92 8,361.78 4,886.16 5,763.72 Healthcare, Educational Institutions and also in sectors of IT Infra/
to the extent of more than ten times by the year 2030 amounting
Fiber Optics, etc. that constitute about 32% of overall sanctions of
Other Comprehensive Income for the period (971.04) (59.07) 456.52 (549.79) (60.54) to ₹3 lakh crore. REC has been known for its rural electrification
the Company, in the last financial year.
efforts, now it would be known for its Renewable Energy (RE) focused
Total Comprehensive Income 10,083.60 9,986.85 8,818.30 4,336.37 5,703.18 initiatives. In addition to the conventional RE projects like solar and REC has been instrumental in fulfilling the Government of India’s
wind projects, REC has ventured into financing of Hybrid projects, target of electrifying unelectrified villages and universal household
Dividend on Equity 3,317.86 3,021.62 2,510.12 2,172.41 2,172.41
E-mobility projects, Pumped Storage projects, manufacturing of Solar electrification as a nodal agency for the Deen Dayal Upadhyaya Gram
* includes disbursement of loans as well as disbursement of grant/subsidy received from the Government under various schemes modules, Project Specific funding for timely execution of projects Jyoti Yojana and the Pradhan Mantri Sahaj Bijli Har Ghar Yojana –
12 13
SAUBHGYA Scheme, as a result, the country has achieved the target wherein discoms are rated based on operational parameters, with Your company aims to achieve loan book of more than ₹10 lakh crore on bonus adjusted share capital) for the previous year. The total
of providing access of electricity to all households. As the power the aim to promote healthy competition and improve performance by March, 2030 and net zero NPA company by the year 2025. dividend payout for financial year 2022-23, including the proposed
sector enters a phase of modernization, technological advancement in deficient areas. Your Company is also publishing periodic reports final dividend, would be ₹3,318 crore, translating to dividend payout
and consumer-centric focus, we are honored to be associated with ₹3 Keeping in view the global concerns regarding energy security
on key regulatory parameters which provide a guiding light to the ratio of 30%.
lakh crore reforms-based and results-linked Revamped Distribution and threat to climate change, your Company is positioning itself to
power sector through compilation, benchmarking and comparative
Sector Scheme (RDSS) of the Government, a significant step in this ensure that transition to greener energy is at the core of its business CORPORATE GOVERNANCE
assessment of various utilities and highlighting corrective measures,
transformative journey. REC is also providing counterpart funding growth objectives. In this direction, during the financial year 2022-23,
wherever required.
to various schemes of Government of India being implemented for your Company sanctioned loans of more than ₹21,370 crore towards Your Company is committed to adopt and follow the best practices
transformation of Indian Power Sector. Further, we take immense FINANCIAL & OPERATIONAL PERFORMANCE renewable energy projects and endeavors to increase the share of in Corporate Governance and meet all the applicable requirements
pride in contributing to the foundation of Ujjwal Bharat, fostering a clean energy portfolio to around 30% of its loan book by March 2030. which are within its ambit, under the Companies Act, 2013, SEBI
brighter and more prosperous India. I am pleased to share that during the financial year 2022-23, REC LODR Regulations, 2015, Guidelines on Corporate Governance for
delivered an outstanding performance on all fronts with exceptional CAPITAL STRUCTURE & BONUS ISSUE Central Public Sector Enterprises, 2010 issued by the Department of
We are constantly working towards strengthening the complete
growth in loans sanctioned from ₹54,421 crore in 2021-22 to Public Enterprises and Secretarial Standards issued by the Institute of
value chain of power, infrastructure & logistics sectors through As of March 31, 2023, the Company's authorized share capital was ₹5,000
₹2,68,461 crore in 2022-23, translating a growth of 393%. There was Company Secretaries of India.
our financing solutions ameliorating the life of every citizen of the crore, divided into 500 crore equity shares of ₹10/- each. Following
all round growth in all the segments comprising of conventional comprehensive guidelines on capital management restructuring by
country. During the year under review, REC received the prestigious Golden
generation, renewable energy and Transmission & Distribution, etc. CPSEs, the Company issued bonus shares to its shareholders in August Peacock Award 2022 for Excellence in Corporate Governance
ECONOMIC OVERVIEW The key performance highlights of your company during the year 2022, in the ratio of 1:3, resulting in the issuance of 65,83,06,000 fully conferred by the Institute of Directors, at a ceremony held in London.
2022-23 are as under: paid-up new equity shares of ₹10/- each.
Despite the generally adverse economic scenario prevailing world SUBSIDIARY COMPANY
over, including a surge in energy prices, natural gas demand in • The Loan Book grew by 13% year on year to ₹4,35,012 crore; This increased the issued and paid-up share capital to ₹2,633.22
the European Union, the global electricity demand grew by nearly • Highest ever disbursements in financial year 2022-23; up by crore, comprising of 2,63,32,24,000 equity shares of ₹10/- each. Power Your Company’s wholly owned subsidiary, RECPDCL is acting as Bid
2% during the financial year 2022-23, driven notably by India and 51% to ₹96,846 crore with additional disbursement of subsidy Finance Corporation Limited, a Government of India undertaking holds Process Coordinator for selection of developer of Inter-State as well
the United States. The share of renewables in the global power of ₹1,066 crore under various Government schemes; 52.63% of the paid-up equity share capital of the Company, while the as Intra-State transmission projects through Tariff Based Competitive
generation mix is estimated to increase from 29% in 2022 to 35% remaining 47.37% was held by the public. Bidding (TBCB) route. RECPDCL has achieved successful closure
by 2025. This shift will lead to reduce reliance on coal and gas- • Highest ever net profit of ₹11,055 crore; up by 10% with EPS of bidding process of 52 transmission projects valuing more than
increasing to ₹41.85 per share of ₹10/- each; FUND MOBILIZATION
fired stations, resulting in a plateau in global power generation ₹68,500 crore. Further, bidding process of 23 transmission projects,
emissions by 2025 and a further decline in CO2 intensity in the years • Net Worth increased by 13% to ₹57,680 crore with return on Your Company is a frequent and accomplished issuer in international valuing more than ₹73,900 crore, are under progress.
ahead. Further, addressing climate change necessitates quicker de- equity of 20.35%; Bond market and regularly issues green bonds. 20% of Green Bond
Under RE-Bundling scheme, as Bid Process Coordinator, RECPDCL
carbonization and the rapid adoption of clean energy technologies. issuance reinforces REC commitment towards climate action plan
• Low levels of Credit Impaired Assets (Stage III), with Gross and has recently concluded the bidding process of 1,750 MW of Solar
and energy transition. In April 2023, REC successfully raised USD 750
India saw an 8.4% surge in electricity demand, driven by post- Net Credit Impaired Assets of 3.42% and 1.01% respectively projects for NTPC (1,250 MW) & DVC (500 MW) amounting to ₹7,840
million green bonds. The Company is raising funds from international
pandemic economic recovery and extreme weather conditions. and the credit cost stood at ₹115 crore translating to 0.03%; crore. RECPDCL is also tapping various other generators for bundling
market at very competitive rates. REC is also exploring raising
India's rapid economic growth is driven by its diverse business of conventional power with Renewable Energy power thereby
cheaper funds from multilateral development banks viz. ADB, World
environment and significant consumer base. Aided by its strong • Capital Adequacy ratio of 25.78%, against minimum statutory contributing towards a greener planet.
Bank, KfW & others and a proposal to set up a subsidiary in GIFT city
macroeconomic fundamentals and prudent fiscal policies, India requirement of 15%, implying ample opportunities to
is also underway. On the Project Implementation front, RECPDCL is implementing
ranks 5th globally in GDP, targeting a USD 5 trillion economy by support the future growth;
This year, your Company has achieved the highest ever mobilization various transmission projects including 220 kV Extra High Voltage
2025. The Economic Survey forecasts an estimated 6.5% growth
• Maintained highest domestic rating of "AAA" for domestic
from 54EC Capital Gain Bonds in the entire industry of ₹12,152 crore (EHV) Transmission Lines (TL) in UT of Ladakh at an altitude of
rate for 2023-24. Meanwhile, India's power sector undergoes
debt instruments from each of the four rating agencies i.e. which is more than 70% of the industry’s share. 54EC Bonds carrying approx. 5,359 meters above mean sea level, which is India's highest
a transformative shift, buoyed by sustained economic growth,
CRISIL, ICRA, CARE and India Ratings and Research; and an interest rate of 5.25% p.a. are the cheapest source of funds for REC, transmission line and Gas Insulated Substation in Nubra & Zanskar
reforms and supportive policies. A record energy demand growth
bringing down the overall cost of borrowing. I feel immensely proud valley of Ladakh under PMDP-15 scheme. These projects will connect
of 9.5% in 2022-23 in itself reflects its vitality. With a focus on • Internationally, REC enjoys rating at par with India's
to share that, we have launched Whatsapp Chatbot to enable quick Ladakh to uninterrupted grid power supply and will help in socio-
renewable energy, India aims to replace half of its installed capacity sovereign rating of "Baa3" and "BBB" from Moody’s and Fitch,
resolution of investor queries over Whatsapp. We have successfully economic development of the region and in reducing dependence
with non-fossil fuel-based sources by 2030, driving further growth respectively.
integrated our 54EC Bond Certificates in the Digi-Lockers and we of DG set for power supply, which in turn will result in decreasing
and sustainable integration into the national smart grid.
I am also happy to share that with continuous efforts to accelerate are the first in the industry to accomplish this. Now, the e-bond the overall Carbon footprint and associated pollution problem in the
POWER SECTOR REFORMS growth within the power sector but also in infrastructure & logistics certificates are also available in everyone’s pockets via Digi Locker. entire Ladakh region.
sector, in which we have recently ventured, improving asset quality
Your Company is also in the process of launching a mobile application RECPDCL, is also implementing Advanced Metering Infrastructure
The Government of India is also rolling out several reforms to and effective cost management, your Company has experienced
exclusively for REC 54EC Bonds, with an aim to move from ‘Customer projects across the country as Project Implementation Agency.
strengthen the distribution sector. RDSS, the recently launched unprecedented success in the first quarter of financial year 2023-24
Satisfaction’ to ‘Customer Delight’. RECPDCL is a front runner player in implementation of various schemes
scheme of the Government after the success of DDUGJY and also, as it attained a record-breaking profit of ₹2,961 crore. Aided by of Government of India, e.g. working as Project Implementing Agency
SAUBHAGYA, is aimed at improving the quality, reliability and growth in profits, the Net Worth has grown to ₹60,886 crore as on June DIVIDEND for National Feeder Monitoring System (NFMS), which is a cloud
affordability of power supply to consumers through a financially 30, 2023, an increase of 16% year-on-year. The sanctions for the period
sustainable and operationally efficient distribution sector. The based central IT platform for monitoring the reliability and quality
were ₹90,797 crore as against ₹59,895 crore in the corresponding Your Company has maintained the tradition of rewarding its
objectives of RDSS include reduction in AT&C losses at pan-India of power of all 33/22/11 kV outgoing distribution feeders across the
period of last year, up by 52% wherein Renewable energy sector shareholders by continuing to be one of the highest dividend-paying
levels of 12-15% and reduction in ACS-ARR gap to zero by year country, which will help in providing critical data on losses, supply
constitutes 16%. The disbursements also jumped to ₹34,133 crore, up company amongst peers. For the financial year 2022-23, the Board
2024-25, both extremely important milestones for the holistic quality and reliability, essential power parameters etc., on near Real-
by 174% compared to ₹12,442 crore, in the corresponding period of has recommended a final dividend of ₹4.35 per equity share (43.5%
growth of the power sector. The scheme also lays special emphasis Time basis. The operational Go-Live of this System is targeted in the
last year. Further, the loan book of your Company has also maintained of paid-up share capital) and the same is placed for your approval.
on leveraging advanced technologies like Artificial Intelligence and financial year 2023-24.
its growth trajectory and has increased by 17% to ₹4.54 lakh crore This is in addition to the 1st Interim Dividend of ₹5.00 per share (50%
Machine Learning. as against ₹3.88 lakh crore on June 30, 2022. Also, the Net NPA have of paid-up share capital) and 2nd Interim Dividend of ₹3.25 per share During the financial year 2022-23, RECPDCL recorded an income
Under the guidance of the Ministry of Power, your Company has come down to less than 1% as on June 30, 2023 and there has not (32.50% of paid-up share capital) already paid, during the year. The of ₹307.26 crore and the Profit After Tax for the financial year 2022-
developed a framework for ‘DISCOM Consumer Service Rating’, been any addition of new NPA in the last six quarters. total dividend for the year, including the proposed final dividend, 23 was ₹139.79 crore. Further, the Net worth of RECPDCL as on
amounts to ₹12.60 per share (126%) against ₹11.48 per share (114.8% March 31, 2023 has reached to ₹440.93 crore.
14 15
POLICY INITIATIVES MoU RATING & AWARDS to transform India's power sector, USD 1.5 trillion to be invested for Notwithstanding above, REC is committed to driving innovation,
green hydrogen capacity and remaining for e-mobility. For the same promoting a culture of excellence and fostering collaboration with
The Company continually reviews its policy framework to align with During the financial year 2022-23, REC garnered several accolades period, World Economic Forum in its report "Mission 2070: A Green stakeholders to achieve the company's goals.
statutory requirements and bolster business value exemplified in and recognitions, including the prestigious "Maharatna" status New Deal for a Net Zero India" estimates a USD 15 trillion (~₹1,230
its strengthened corporate governance. We have revised related for Company’s operational efficiency and financial strength. The lakh crore) investment opportunity which includes USD 6 trillion for ACKNOWLEDGEMENTS
party transaction policies and adopted the ESG policy, during performance of the Company in terms of MoU for the financial year Energy transition; USD 2.5 trillion for Decarbonizing Industry and
the financial year 2022-23. Moreover, the Company introduced, 2023 is likely to be excellent, subject to final evaluation by DPE. the rest of USD 6.5 trillion for mobility, green building, agriculture & As I conclude, I want to extend my heartfelt gratitude to the Hon’ble
updated and refined various business-focused policies to reinforce associated enablers. Minister of Power and New & Renewable Energy, Hon’ble Minister
The company was also honored as the 'Best PSU' in the Financial of State for Power, Secretary (Power), and all the illustrious officials
market competitiveness, spanning areas such as financial assistance,
Services category and 'Best Navratna' by Dun & Bradstreet for For the next 10 years, the latest National Electricity Plan (Generation of the Ministry of Power for their continuous support and visionary
investment strategies, regulatory compliance, credit management
financial year 2021-22. Further, it received the Golden Peacock expansion planning) has estimated that the installed capacity by
and outsourcing. Further, HR related policies were also revisited guidance. I also thank the holding company, Power Finance
Award for Excellence in 'Corporate Governance,' the 'Best Public the end of financial year 2026-27 shall reach 610 GW with 57%
during this period, to make them more employee friendly. Corporation Limited, for their continued cooperation.
Sector IT Project' award at the Technology Excellence Awards 2022 non-fossil capacity and by financial year 2031-32 it is expected to
The ESG policy framework of your Company, inter-alia, comprises and the 'Operational Performance Excellence' recognition at the reach 900 GW with 68% non-fossil share. This corresponds to fund I am grateful for the unwavering support from the officials of
environmental impact considerations in its operational, financial 12th PSE Excellence Awards. Additionally, REC's commitment to requirement of ₹33.60 lakh crore by 2032 for generation sector Ministry of Finance, Ministry of Corporate Affairs, Department of
and risk management linked decision-making. Further, to ensure environmental sustainability was also acknowledged with the Green alone. Of this ₹14.54 lakh crore is estimated for the five-year period Public Enterprises, Department of Investment and Public Asset
the financing of clean energy, suitable conditions related to Ribbon Champions Award. during financial year 2022-27 and remaining ₹19.06 lakh crore for Management, NITI Aayog, Reserve Bank of India, Securities &
Environmental, Health, Safety and Social (EHSS) aspects, are being subsequent five years. Exchange Board of India, Stock Exchanges and the Depositories.
THE PATH AHEAD
added in the loan agreement/sanction. Further, in our quest for excellence in Corporate Governance, I
As a Maharatna CPSU and a leading NBFC, REC is determined to
Further, with the Company venturing into Infrastructure and Logistics The Indian economy exhibited robust resilience in 2022-23 amidst a extend my appreciation to the Comptroller & Auditor General of
contribute to country’s journey towards achieving net-zero emissions
Sector, it is expected to significantly add to the loan portfolio of REC, global turmoil following the war in Ukraine and recorded a growth India, Statutory Auditors, Secretarial Auditors, Registrars and other
by 2070 by continuing as government's strategic partner to finance
while ensuring diversification in asset as well as borrower profile. of 7%, the highest among major economies in the world. Barring the professionals associated with the Company.
power sector and also by capitalising on the thrust on energy
Omicron wave scare early in the year 2022, COVID-19 was largely on
transition by the government and financing upcoming renewable The soaring success of REC rests firmly on the bedrock of trust and
RISK MANAGEMENT the ebb for most part of the year helping in restoration of consumer
energy projects (solar, wind, biomass, hydro); funding of solar parks, goodwill built with our stakeholders. I extend my heartfelt thanks to
and business confidence and also contact-intensive activities. On the
Your Company's Risk Management is all-encompassing, addressing solar SEZ, solar pump-sets, energy storage systems, EV’s / charging all shareholders, debenture-holders, investors, lenders, borrowers
back of sound macroeconomic policies, softer commodity prices, a
credit, operational, liquidity and market risks bundled in Risk infrastructure, etc. and customers including the visionary State Governments, State
robust financial sector, a healthy corporate sector, continued fiscal
management Policy. Each risk type is skillfully managed through policy thrust on quality of government expenditure and new growth In light of broadened mandate, REC has already started to explore/ power utilities and dynamic private sector entrepreneurs.
systematic procedures. Credit-risk is tackled through a structured opportunities stemming from global realignment of supply chains, finance sub-sectors like Airports, Metro Rail, Highways, Green Lastly, I am deeply indebted to my esteemed colleagues on the Board
appraisal process, while operational risks are managed through India’s growth momentum looks bright in 2023-24 in an atmosphere Hydrogen/Green Ammonia, Multi-Modal Logistics Parks, Cold Chains, for their ingenious insights and the indomitable spirit of the entire
regular monitoring of the comprehensive Risk Register spanning all of easing inflationary pressures as RBI has projected 6.4% real GDP Ports, Healthcare Infrastructure, etc. This diversification of the lending REC workforce. With your valuable contributions, we shall embark on
functional areas. Liquidity risk is expertly handled with a judicious growth for financial year 2023-24. portfolio has enabled the company to reduce dependence on the a thrilling journey to make REC reach unprecedented heights. Thank
mix of domestic and international resource mobilization strategies power sector and mitigate risks associated with the sector.
Even as the country has achieved the highest population mark in the you and Jai Hind!
and market risk is mitigated through a disciplined Asset Liability
globe, it has the youngest human resources in the world to propel
Management framework and prudent hedging policies.
the future growth. A recently published report by EY, "India@100"
A Board-level Risk Management Committee oversees these efforts estimates that through 2047, which is the “Amrit Kaal” period, India’s
and offers valuable recommendations, wherever required. An economy shall continue to grow in the range of 6-6.4%, by when
Executive Director level Chief Risk Officer is also contributing to India would become a US$26 trillion economy.
mitigate risk of the Company and a Risk Based Internal Audit has also
Energy transition to clean and green energy, is expected to lead to With warm wishes,
been implemented, aligning with RBI requirements.
large investments in the power sector in the country, thus enabling
CORPORATE SOCIAL RESPONSIBILITY a promising future for REC. At COP26 in Glasgow, UK in November
2021, our Hon’ble Prime Minister announced about India’s aim to
During the financial year 2022-23, your Company continued its achieve net-zero emissions by 2070. Furthermore, in August 2022,
Vivek Kumar Dewangan
commitment to socially beneficial projects through CSR initiatives. India updated its intended Nationally Determined Contribution
With a focus on national developmental issues, REC spent a (NDC) as part of the Paris Agreement (2015), by committing to reduce
noteworthy over ₹210 crore on various thematic areas surpassing the the Emissions Intensity of its GDP by 45% from 2005 levels and Place : Gurugram
minimum requirement set by statutory provisions. We have covered achieving about 50% installed capacity from non-fossil fuel-based Date : August 11, 2023
a wide range of activities viz., health & sanitation, education, rural energy resources by 2030.
development, skill development, entrepreneurship programmes etc. According to Optimal Generation Mix report of CEA, the total
Embracing inclusive development, your Company sponsored health installed capacity is expected to reach 819 GW by 2030 from the
and nutrition projects in aspirational districts like Gajapati in Odisha, level of 415.50 GW by the end of 2023. The non-fossil capacity is
Mamit in Mizoram, Kiphire in Nagaland, Muzaffarpur in Bihar, Udham likely to increase to 500 GW from the present level of 179 GW. The
Singh Nagar in Uttarakhand, Chandel in Manipur and West Sikkim in capacity addition and requirements of associated transmission and
Sikkim. distribution infrastructure is likely to keep the investment scenario
buoyant.
We have also supported National Sports Development Fund (NSDF)
through Sports Authority of India for an amount of ₹100 crore over a Various promising estimates have been made for fund requirement
period of three years covering Athletics, Badminton and Boxing which to achieve the net-zero targets by the country. The report Investment
also includes Target Olympic Podium Scheme (TOPS). Identifying and Sizing India's 2070 Net-Zero Target, by CEEW, India would need
nurturing young talents to win medals for the country, is one of the cumulative investments of USD 10.1 trillion (~ ₹828 lakh crore) to
objectives of this scheme. achieve net-zero emissions by 2070, with USD 8.4 trillion needed
16 17
Notice applicable provisions, if any, of the Companies Act, 2013 read with the
Companies (Management and Administration) Rules, 2014 (including
of Debenture Holders, if so required under the terms of agreement/
deed and subject to such conditions and modifications as may be
Notice is hereby given that the Fifty Fourth (54th) Annual any statutory modification(s) or re-enactment(s) thereof, for the prescribed or imposed by any of them while granting such approvals,
(“Act”) and Rules made thereunder, Regulation 17 (1C) and other
General Meeting (AGM) of REC Limited (“REC” or “the Company”) time being in force) and any other applicable laws and provisions of permissions and sanctions which may be agreed to by the Board
applicable provisions of the Securities and Exchange Board of India
(CIN: L40101DL1969GOI005095) will be held on Wednesday, Articles of Association of the Company, consent of the shareholders of Directors of the Company (the “Board”) or any duly constituted
(Listing Obligations and Disclosure Requirements) Regulations,
September 6, 2023 at 11.00 A.M., Indian Standard Time (IST) be and is hereby accorded to the Board of Directors of the Company Committee of the Board or such other authority as may be approved
2015 and/or any other applicable laws (including any statutory
through Video Conferencing/Other Audio Visual Means(VC/OAVM) (the “Board”) to create charge, hypothecation, mortgage on any by the Board, consent of the shareholders be and is hereby accorded
amendment(s), modification(s) or re-enactment(s) thereof, for the
to transact the following businesses: movable and/or immovable properties/assets of the Company to raise funds through private placement of unsecured/secured
time being in force), the Articles of Association of the Company,
wheresoever situated, both present and future and on the whole non-convertible bonds/debentures upto ₹1,05,000 crore during a
letter dated July 11, 2023 of Ministry of Power, Government of India,
ORDINARY BUSINESS or substantially the whole of the undertaking or the undertakings period of one year from the date of passing of this resolution, in one
Shri Manoj Sharma (DIN: 06822395), who was appointed in the
of the Company in favour of any banks, financial institutions, hire or more tranches, to such person or persons, who may or may not
Item No. 1: To receive, consider, approve and adopt the audited capacity of Additional Director (Nominee Director of PFC) on the
purchase/lease companies, body corporate or any other persons on be the bond/ debenture holders of the Company, as the Board (or
standalone & consolidated financial statements of Board, with effect from July 11, 2023 and in respect of whom, the
such terms and conditions as the Board may think fit, for the benefit any duly constituted Committee of the Board or such other authority
the Company for the financial year ended March 31, Company has received a notice in writing proposing his candidature
of the Company and as agreed between Board and lender(s) towards as may be approved by the Board) may at its sole discretion decide,
2023 along with the reports of the Board of Directors, for Directorship under Section 160 of the Act, be and is hereby
Auditors and the comments of the Comptroller & security for borrowing of funds from time to time, not exceeding including eligible investors (whether residents and/or non-residents
appointed as Director (Nominee Director of PFC) of the Company,
Auditor General of India thereon. ₹6,00,000 crore (Rupees Six Lakh Crore only) in Indian Rupees and in and/or institutions/incorporated bodies and/or individuals and/
liable to retire by rotation, on the terms & conditions, fixed by the
any foreign currency equivalent to USD 20 billion (US Dollars Twenty or trustees and/or banks or otherwise, in domestic and/or one or
Item No. 2: To take note of the payment of 1st and 2nd interim Government of India.”
Billion only) for the purpose of business of the Company or otherwise more international markets) including Non-Resident Indians, Foreign
dividends and declare final dividend on equity shares Item No. 7: To increase the overall Borrowing Limit of the as per the requirements of the Companies Act, 2013 read with the Institutional Investors (FIIs), Venture Capital Funds, Foreign Venture
of the Company for the financial year 2022-23. Company Companies (Management and Administration) Rules, 2014 and Capital Investors, State Industrial Development Corporations,
Item No. 3: To appoint a Director in place of Shri Vijay Kumar any other statutory and procedural formalities to be complied with Insurance Companies, Provident Funds, Pension Funds, Development
To consider and if thought fit, to pass, with or without modification(s),
Singh (DIN: 02772733), who retires by rotation and in this regard.” Financial Institutions, Bodies Corporate, Companies, Private or Public
the following resolution(s) as a Special Resolution:-
being eligible, offers himself for re-appointment. or other entities, authorities and to such other persons in one or
“RESOLVED THAT in supersession of earlier resolution passed by “RESOLVED FURTHER THAT the Board of Directors of the Company
more combinations thereof through Private Placement in one or
Item No. 4: To fix the remuneration of Statutory Auditors for the the Company in this regard and pursuant to Section 180(1)(c) of the (including any Committee duly constituted by the Board of Directors
more tranches and including the exercise of a green-shoe option
financial year 2023-24. Companies Act, 2013 read with the Companies (Management and or any authority as approved by the Board of Directors) be and is
(within the overall limit of ₹1,05,000 crore, as stated above), if any,
Administration) Rules, 2014 (including any statutory modification(s) hereby authorized to do and execute all such acts, deeds and things
SPECIAL BUSINESS at such terms as may be determined under the guidelines as may be
or re-enactment(s) thereof, for the time being in force) & any as may be necessary for giving effect to the above resolution.”
applicable, and on such terms and conditions as may be finalized by
Item No. 5: Appointment of Shri Narayanan Thirupathy other applicable laws and provisions of Articles of Association Item No. 9: Approval for private placement of securities. the Board or any duly constituted Committee of the Board or such
(DIN: 10063245) as Non- Executive Independent of the Company, consent of the shareholders be and is hereby other authority as may be approved by the Board.”
Director. accorded to the Board of Directors of the Company (the “Board”) To consider and if thought fit, to pass, with or without modification(s),
for increasing the overall borrowing limit of the Company in Indian the following resolution(s) as a Special Resolution:- “RESOLVED FURTHER THAT for the purpose of giving effect to any
To consider and if thought fit, to pass, with or without modification(s), Private Placement of unsecured/secured non-convertible bonds/
Rupees from ₹4,50,000 crore to ₹6,00,000 crore and in any foreign “RESOLVED THAT in accordance with the provisions of Section 42
the following resolution(s) as a Special Resolution: debentures, the Board of Directors of the Company (the “Board”) or
currency equivalent from USD 16 billion to USD 20 billion and and other applicable provisions, if any, of the Companies Act, 2013
“RESOLVED THAT pursuant to the provisions of Sections 152, to borrow such moneys or sum of moneys, from time to time, at any duly constituted Committee of the Board or such other authority
and rules made thereunder, (including any statutory modification(s) as may be approved by the Board, be and is hereby authorized to
161, 196 and other applicable provisions of the Companies Act, its discretion, with or without security and upon such terms and
or re-enactment(s) thereof, for the time being in force) and any other determine the terms of the Issue, including the class of investors
2013 (“Act”) and Rules made thereunder, Regulation 17 (1C) conditions as the Board may think fit, for the purpose of business
applicable laws including the SEBI (Issue & Listing of Debt Securities) to whom the bonds/debentures are to be allotted, the number of
and other applicable provisions of the Securities and Exchange of the Company, notwithstanding that the money to be borrowed
Regulation, 2021 and any amendments thereof and other applicable bonds/debentures to be allotted in each tranche, issue price, tenor,
Board of India (Listing Obligations and Disclosure Requirements) together with the money already borrowed by the Company (apart
SEBI regulations and guidelines, the Circulars/Directions/Guidelines interest rate, premium/discount to the then prevailing market price,
Regulations, 2015 and/ or any other applicable laws (including from the temporary loans obtained from the Company’s bankers
any statutory amendment(s), modification(s) or re-enactment(s) issued by Reserve Bank of India, from time to time, the provisions of amount of issue, discount to issue price to a class of bond/debenture
in the ordinary course of business), will exceed aggregate of the
thereof, for the time being in force), the Articles of Association the Memorandum and Articles of Association of the Company and holders, listing, issuing any declaration/undertaking etc. required
paid up capital of the Company and its free reserves, provided that
of the Company and Order dated March 3, 2023 of Ministry of subject to the receipt of necessary approvals as may be applicable to be included in the Private Placement Offer Letter and to do and
the total amount borrowed and outstanding at any point of time
Power (MoP), Government of India, Shri Narayanan Thirupathy and such other approvals, permissions and sanctions, as may be execute all such acts, deeds and things, as may be required under any
in any foreign currency shall not exceed a sum equivalent to USD
(DIN: 10063245), who was appointed in the capacity of Additional necessary, including the approval of any existing lenders/trustees other regulatory requirement for the time being in force.”
20 billion (US Dollars Twenty Billion only) and upto ₹6,00,000 crore
Director (part-time Non Official Director) on the Board, with effect (Rupees Six Lakh Crore only) in Indian Rupees.”
from March 6, 2023 and in respect of whom, the Company has received
a notice in writing proposing his candidature for Directorship under “RESOLVED FURTHER THAT the Board of Directors of the Company
Section 160 of the Act, be and is hereby appointed as Independent (including any Committee duly constituted by the Board of Directors
or any authority as approved by the Board of Directors) be and is By Order of the Board of Directors
Director (part-time Non Official Director) of the Company, not
hereby authorized to do and execute all such acts, deeds and things For REC Limited
liable to retire by rotation, on the terms & conditions, fixed by the
Government of India.” as may be necessary for giving effect to the above resolution.”
Item No. 6: Appointment of Shri Manoj Sharma (DIN: 06822395) Item No. 8: To create mortgage and/or charge on all or any of
as Nominee Director of Power Finance Corporation J.S. Amitabh
the movable and/or immovable properties of the
Executive Director & Company Secretary
Limited. Company.
To consider and if thought fit, to pass, with or without modification(s), To consider and if thought fit, to pass, with or without modification(s), Date : August 11, 2023
the following resolution(s) as a Ordinary Resolution: the following resolution(s) as a Special Resolution:- Place : REC World Headquarters
Plot No. I-4, Sector 29, Gurugram,
“RESOLVED THAT pursuant to the provisions of Sections 152, “RESOLVED THAT in supersession of earlier resolution passed by the Haryana – 122001
161 and other applicable provisions of the Companies Act, 2013 Company in this regard and pursuant to Section 180(1)(a) and other
18 19
NOTES:- Members may join the 54th AGM through VC/OAVM, which shall In the 53rd AGM of the Company held on September 16, 2022,
be kept open for the members on September 6, 2023 from the Board of Directors were authorized by the Shareholders
1. The Explanatory Statement pursuant to Section 102 of on the resolutions set out in this Notice:- 10:45 A.M. IST i.e. 15 minutes before the scheduled start time in pursuance of Section 142 read with Section 139(5) of the
the Companies Act, 2013 (“the Act”) setting out material and the Company may close the window for joining the VC/ Companies Act, 2013 to fix and approve the remuneration
• In case shares are held in Demat mode, please send
facts concerning the business under Item Nos. 5 to 9 of OAVM facility 30 minutes after the scheduled start time, i.e. by of Statutory Auditors of the Company for the financial year
an e-mail to [email protected] quoting DP
the accompanying Notice, is annexed hereto. The Board of 11:30 A.M. on date of AGM. 2022-23. Accordingly, the Board of Directors approved the
ID Client ID (16 digit DP ID + Client ID or 16 digit
Directors of the Company in its meetings held on March 9, payment of remuneration of ₹58,00,000/- (Rupees Fifty Eight
beneficiary ID), Name of holder(s), scanned copy of Please refer to detailed instructions for remote e-voting,
2023, July 26, 2023 and through circular resolution dated
client master list/demat account statement, PAN Card Lakh only) plus taxes as applicable to be shared equally by
July 14, 2023 considered that the items of Special/Ordinary attending the 54th AGM through VC/OAVM and electronic
and Aadhaar Card. the Statutory Auditors i.e. M/s O.P. Bagla & Co. LLP, Chartered
Business at Sl. Nos. 5 to 9 of the Notice, being unavoidable in voting during the AGM, annexed to this Notice.
Accountants and M/s S.K. Mittal & Co., Chartered Accountants,
nature, shall be transacted at the 54th AGM of the Company. • In case shares are held in physical mode, please send 11. In pursuance of Article 114 of the Articles of Association of for the financial year 2022-23. The Board also approved that
2. In view of the MCA Circular dated December 28, 2022, read an e-mail to [email protected] quoting Folio the Company read with Section 123 of the Companies Act, in addition to the said remuneration, the Statutory Auditors
with Circulars dated May 5, 2020, April 13, 2020, and April No., Name, scanned copy of Share certificate (front & 2013 and Rules made thereunder, as amended from time to may be paid such actual reasonable travelling allowance and
8, 2020 issued by the Ministry of Corporate Affairs (“MCA back), PAN Card and Aadhaar Card. time, the Company declared and paid interim dividend twice out-of-pocket expenses for outstation audit work, as may be
Circulars”) and SEBI Circular dated January 5, 2023, May 13, 7. All Members of the Company including Institutional Investors for the financial year 2022-23, as detailed below:- decided by the CMD/Director (Finance).
2022, January 15, 2021, and May, 12, 2020 and other relevant are encouraged to attend the AGM and vote on item(s) to
circulars issued in this regard and in compliance with the Sl. Particulars Amount per Date of Date of The appointment of Statutory Auditors of the Company for
be transacted at the AGM. Corporate Members/Institutional
provisions of the Act and the SEBI (Listing Obligations no. equity declara- Payment the financial year 2023-24 is yet to be made by the C&AG
Investors intending to appoint their authorized representatives
and Disclosure Requirements) Regulations, 2015 (“Listing share (₹) tion of India. Further, members are requested to authorize the
pursuant to Section 113 of the Companies Act, to attend the
Regulations”), the 54th AGM of the Company is being 1. 1st Interim 5.00 October 27, November Board of Directors of the Company to fix an appropriate
AGM through VC/OAVM are requested to send a certified copy
conducted through VC/OAVM facility, without physical Dividend 2022 24, 2022 remuneration of the Statutory Auditors of the Company, as
of the Board resolution/ authorization letter to the Scrutinizer
presence of members at a common venue. The deemed may be deemed fit, for the financial year 2023-24.
through e-mail at [email protected] with a copy 2. 2nd Interim 3.25 January 30, February
venue for the 54th AGM shall be the Registered Office of the marked to [email protected]. Dividend 2023 28, 2023
Company. 14. SEBI encourages all shareholders to hold their shares in
8. The Company has fixed Wednesday, August 30, 2023 as the Further, the Board of Directors of the Company in its meeting dematerialized form as this eliminates the possibility of
3. In terms of the MCA and SEBI Circular(s) as mentioned damage/loss of physical share certificate(s) & cases of forgery
Cut-off date for determining the eligibility to vote on item(s) of held on June 24, 2023 had inter-alia recommended final
above, physical attendance of Members at the AGM and facilitates the ease and convenience of paperless trading
business to be transacted at the 54th AGM as detailed in notice. dividend @ ₹4.35 per equity share for the financial year
and appointment of proxies has been dispensed with. of shares. Further, no stamp duty is payable on transfer of
Accordingly, the Attendance Slip, Proxy Form and Route Any person who acquires shares of the Company and becomes 2022-23 and the said dividend, if approved, by the members
at this Annual General Meeting, will be paid within thirty days shares held in demat form. In this regard, SEBI had earlier
Map are not annexed to this Notice. However, in pursuance a member of the Company after sending of the Notice and prescribed that requests for effecting transfer of securities
of Section 112 and Section 113 of the Act, representatives of is holding shares as on the cut-off date, may obtain the login from the date of 54th AGM of the Company, to the members
or as per their mandates whose names appear in the Register shall not be processed unless the securities are held in the
the Members may be appointed for the purpose of casting ID and password by sending a request at [email protected]. dematerialized form with a depository.
vote through remote e-voting prior to the AGM, participation However, if he / she is already registered with NSDL for remote of Members of the Company as on record date i.e. Friday,
in the 54th AGM through VC/OAVM facility and for electronic e-voting, then he / she can use his / her existing user ID and July 14, 2023. Further, SEBI vide Circular dated January 25, 2022 has
voting during the AGM. password for casting the vote. Any shareholder who disposes off prescribed detailed procedure for issue of securities
Pursuant to Finance Act, 2020 dividend income is now taxable
4. Attendance of the Members participating in the 54th AGM his shareholding such that he/she is not a member as on the cut- in dematerialized form only while processing investor
in the hands of the shareholders and the Company is required
through VC/OAVM facility shall be counted for the purpose of off date should treat this Notice for information purposes only. service requests such as sub-division/split/consolidation/
to deduct tax at source (“TDS”) from dividend paid to the
reckoning the quorum under Section 103 of the Act. Members at prescribed rates in the Income Tax Act, 1961 (“the transmission/transposition and issue of duplicate
9. CS Hemant Singh (FCS no. 6033) from Hemant Singh &
IT Act”). In order to enable compliance with TDS requirements certificate(s). Accordingly, we request you to convert your
5. In case of joint holders attending the AGM, only such joint holder Associates, Practicing Company Secretaries has been appointed
in respect of dividends declared by the Company in future, shareholdings from physical form to demat form at the
who is higher in the order of names will be entitled to vote. as the Scrutinizer to scrutinize the votes cast by the shareholders
members are requested to submit Form 15G/15H on annual earliest. Further, in terms of SEBI circular dated March 16,
in respect of items of business to be transacted at the 54th AGM,
6. In line with the above Circulars of MCA & SEBI, the Notice basis and update details about their residential status, PAN, 2023, Company has sent intimations vide letter dated May
in a fair and transparent manner.
of the 54th AGM along with Annual Report is being sent Category as per the IT Act with their Depository Participants 29, 2023 to the shareholders, who are holding the shares in
10. In compliance with provisions of MCA & SEBI Circulars referred physical form to furnish/update PAN, e-mail address, mobile
by e-mail to all those members, whose e-mail IDs were or in case of shares held in physical form, with the Company /
above, Section 108 of the Companies Act, 2013 read with number, bank account and nomination details and the
registered with the Company/depository. Annual Report R&TA, so that tax at source, if any as per applicable rates may
Rule 20 of the Companies (Management and Administration) said intimation has also been sent to stock exchanges for
along with notice are also available on the website be deducted in respect of dividend payments made by the
Rules, 2014, Regulation 44 of SEBI (LODR) Regulations, 2015 dissemination.
of the Company at www.recindia.nic.in and on the Company in future.
and Secretarial Standards on General Meetings issued by ICSI,
website of National Stock Exchange of India Limited at
the Company is offering e-voting facility to the shareholders 12. Brief Resume of the Directors seeking appointment/re- 15. As SEBI has made usage of electronic payment modes for
www.nseindia.com and BSE Limited at www.bseindia.com
to enable them to cast their votes electronically on the items appointment as required under Regulation 36 of SEBI (Listing making payments to the investors mandatory, therefore
and also on the website of National Securities Depository
mentioned in the Notice. Those shareholders who do not opt Obligations and Disclosure Requirements) Regulations, 2015 members are advised to submit their National Electronic
Limited (“NSDL”) at www.evoting.nsdl.com.
to cast their vote through remote e-voting, may cast their vote {SEBI (LODR) Regulations, 2015} is annexed hereto and forms Clearing System (NECS)/National Electronic Fund Transfer
The Company had also published advertisements in through electronic voting system during the AGM. part of Notice. (NEFT)/ Direct Credit mandates or changes therein, to
newspapers to encourage shareholders, holding shares in enable the Company to make payment of dividend.
NSDL will be providing facility for remote e-voting, 13. Pursuant to Section 139(5) of the Companies Act, 2013, Shareholders holding shares in physical form may send the
physical and electronic form, to register/update their email
participation in the 54th AGM through VC/OAVM and voting the Auditors of a Government Company are appointed/re- NECS/NEFT/Direct Credit mandate form, available on the
IDs for receiving the Annual Report for the financial year
during the 54th AGM through electronic voting system. The appointed by the Comptroller and Auditor General (C&AG) Company’s website, to R&TA of the Company at the address
2022-23 and other updates of Company.
remote e-voting period begins on Sunday, September 3, of India and in terms of Section 142 of the Companies Act,
i.e. Alankit Assigments Limited, Unit : REC Limited, 205-
Those shareholders who have still not been able to update 2023 (0900 hours) and ends on Tuesday, September 5, 2013, their remuneration shall be fixed by the Company in
208, Anarkali Complex, Jhandewalan Extension, New
their e-mail IDs, may follow the process below for registration 2023 (1700 hours). The remote e-Voting module shall be a General Meeting or in such manner as the Company may
determine in a General Meeting. Delhi-110055. Shareholders holding shares in electronic
of e-mail IDs and procuring User IDs & Password for e-voting, disabled by NSDL for voting thereafter.
20 21
form may send the NECS / NEFT /Direct Credit Mandate 19. Statutory registers as prescribed under the Companies Act, STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013
Form directly to their Depository Participant (DP). Those 2013 and all documents referred to in the notice, will be THE FOLLOWING STATEMENT SETS OUT ALL MATERIAL FACTS RELATING TO THE SPECIAL BUSINESSES SET OUT IN THE NOTICE.
who have already furnished the NECS/NEFT/Direct Credit available for inspection through electronic mode, without
Mandate Form to the Company/ R&TA / DP with complete any fee, by the members from the date of circulation of this Item No. 5 The Ministry of Power (MoP), vide its letter dated July 11, 2023, has appointed
details need not send it again. Shri Manoj Sharma (DIN: 06822395), in place of Smt. Parminder Chopra.
Notice, up to the date of AGM i.e. September 6, 2023. Members REC is a Government Company and as per its Articles of Association, Shri Manoj Sharma is serving as Director (Commercial) in Power Finance
desiring for inspection of said documents are requested to the President of India has the power to appoint Chairman / Chairman & Corporation Limited. Further, on recommendation of the Nomination
16. Members who have not received/encashed their dividend Managing Director of the Company and also Vice Chairman/Managing
warrants within its validity period may write to the Company send an e-mail to the Company at [email protected]. & Remuneration Committee, the Board of Directors of the Company has
Director, Whole time Functional Director and other Directors in approved the appointment of Shri Manoj Sharma through circulation as
at its Registered Office or R&TA of the Company, for consultation with the Chairman/Chairman and Managing Director. Additional Director (Nominee Director of PFC) of the Company, with effect
20. Members desirous of getting any information on any item(s)
revalidating the warrants or payment in lieu of such warrants However, in accordance with the proviso of Regulation 17(1C) of SEBI (LODR) from July 11, 2023.
in the form of demand draft. of business of this meeting are requested to send an e-mail
Regulations, effective from January 17, 2023, provides that a public sector A brief profile of Shri Manoj Sharma, in terms of SEBI (LODR) Regulations,
mentioning their name, demat account number/folio number,
Company shall ensure the approval of the shareholders for appointment of 2015 and Secretarial Standard-2, is annexed to this Notice.
17. Pursuant to the provisions of the Companies Act, 2013 email id, mobile number to [email protected], at least a person on the Board of Directors at the next general meeting.
and Investor Education and Protection Fund Authority seven days prior to the date of the AGM and the same will be Pursuant to the Articles of Association of the Company, Shri Manoj Sharma
(Accounting, Audit, Transfer and Refund) Rules, 2016, the The Ministry of Power (MoP), vide its order dated March 3, 2023, has shall be liable to retire by rotation. Further, the terms & conditions of his
suitably replied by the Company. appointed Shri Narayanan Thirupathy (DIN: 10063245), as Part time
requisite details of unpaid and unclaimed amounts lying appointment will be governed by MoP Order and/or any other Order etc.
Non-official Independent Director of REC, for a period of three years issued by the Government of India.
with the Company has been uploaded on Company’s website 21. The Scrutinizer shall, after the conclusion of the electronic from the date of notification of his appointment or until further orders,
(www.recindia.nic.in) and website of Ministry of Corporate voting during the AGM, assess the votes cast at the meeting whichever is earlier. Further, after compliances of statutory provisions Shri Manoj Sharma fulfills the conditions specified in the Act and the Rules
Affairs. Further, the investor-wise details of amounts and through electronic voting system, thereafter unblock the and on recommendation of the Nomination & Remuneration Committee, made thereunder and has also declared that he is not debarred from being
shares, which have already been transferred by the Company the Board of Directors of the Company has approved the appointment of appointed as a Director by SEBI or any other authority, and that he is not
votes cast through remote e-voting and make a consolidated Shri Narayanan Thirupathy as Director of the Company, with effect from disqualified from being appointed as a Director of the Company, in terms
to IEPF, are available on the website of the Company i.e.
www.recindia.nic.in. Scrutinizer’s Report and submit the same to the Chairman of March 6, 2023, subject to approval of the shareholders. Further, his tenure of the provisions of the Act. Further, he is not related to any Director or Key
the Meeting. will be upto March 2, 2026 (i.e. three years from the date of notification of Managerial Personnel of the Company. The Company has received a notice
Further, the unclaimed final dividend for the financial year his appointment) or until further orders, whichever is earlier. in writing, proposing his candidature for the office of Director in terms of
22. The results of the voting indicating the number of votes cast Section 160 of the Act.
2015-16 and unclaimed interim dividend for the financial A brief profile of Shri Narayanan Thirupathy, in terms of SEBI (LODR)
year 2016-17 will be due for transfer to IEPF in October, 2023 in favour or against each of the Resolution(s), invalid votes Regulations, 2015 and Secretarial Standard-2, is annexed to this Notice. All documents related to this business proposal shall be available for
and March, 2024 respectively, in terms of the provisions of the and whether the Resolution(s) have been carried out or not, inspection through electronic mode, from date of circulation of this Notice
Pursuant to the Articles of Association of the Company and applicable upto the date of AGM.
Companies Act, 2013. together with the Scrutinizer’s Report, will be uploaded on the statutory provisions, Shri Narayanan Thirupathy shall not be liable to
website of the Company (www.recindia.nic.in) and on NSDL retire by rotation. Further, the terms & conditions of his appointment The Board of Directors of the Company approved the proposal of
18. Members desirous of making a nomination in respect of their will be governed by MoP Order and/or any other Order etc. issued by the appointment of Shri Manoj Sharma effective from July 11, 2023 through
shareholding in the Company, as permitted under Section website (www.evoting.nsdl.com) and will also be submitted
Government of India. circulation and recommended the passing of the Ordinary Resolution at
72 of the Companies Act, 2013, are requested to write to to BSE Limited and National Stock Exchange of India Limited Item No. 6 of this notice, by Shareholders of the Company.
within the prescribed time. Further, the resolution(s), if passed Shri Narayanan Thirupathy fulfills the conditions specified in the Act and
the R&TA of the Company in Form SH-13 as prescribed in the Rules made thereunder and Shri Thirupathy is independent of the Except Shri Manoj Sharma, none of the Directors or Key Managerial
the Companies (Share Capital and Debentures) Rules, 2014. by shareholders, shall be deemed to be passed on the date of Management and has also declared that he is not debarred from being Personnel or their relatives have any concern or interest, financial or
Blank Nomination form is available on Company’s website i.e. 54th AGM. appointed as a Director by SEBI or any other authority, and that he is not otherwise, in passing of the said Ordinary Resolution, other than the
https://recindia.nic.in/uploads/files/Form-no-SH-13.pdf. disqualified from being appointed as a Director of the Company, in terms extent of their holding in the securities of the Company, if any.
of the provisions of the Act. Further, he is not related to any Director or Key
Managerial Personnel of the Company. The Company has received a notice In view of the above, it is proposed to obtain the approval of shareholders
In case of shares held in dematerialized form, the nomination
in writing, proposing his candidature for the office of Director in terms of for appointment of Shri Manoj Sharma as Director (Nominee Director of
form has to be lodged directly with the respective DP. PFC) of the Company, by passing Ordinary Resolution set out at Item No.
Section 160 of the Act.
6 of this Notice.
All documents related to this business proposal shall be available for
inspection through electronic mode, from date of circulation of this Notice Item No. 7
***** upto the date of AGM. As per Section 180(1)(c) of the Companies Act, 2013 read with the
The Board of Directors of the Company in its meeting held on March 9, 2023 Companies (Management and Administration) Rules, 2014, the Board
approved the above proposal and recommended the passing of the Special of Directors of the Company shall, with the consent of the Company by
Resolution at Item No. 5 of this notice, by Shareholders of the Company. passing a Special Resolution, borrow moneys, which together with the
moneys already borrowed by the Company, is in excess of the paid-up
Except Shri Narayanan Thirupathy, none of the Directors or Key
capital and free reserves of the Company.
Managerial Personnel or their relatives have any concern or interest,
financial or otherwise, in passing of the said Special Resolution, other In this regard, the Members of the Company, by passing Special
than the extent of their holding in the securities of the Company, if any. Resolution in the 53rd Annual General Meeting held on September 16,
In view of the above, it is proposed to obtain the approval of shareholders 2022, had granted powers to the Board of Directors of the Company to
for appointment of Shri Narayanan Thirupathy as Independent Director retain the overall borrowing limit of the Company upto ₹4,50,000 crore in
(part-time non-official Director) of the Company, by passing Special Indian Rupees and increase the borrowing limit in any foreign currency
Resolution set out at Item No. 5 of this Notice. equivalent to USD 16 billion from USD 12 billion.
Item No. 6 Out of the above, the limit available for borrowing in Indian Rupees as on
March 31, 2023 was only ₹1,69,248 crore and in foreign currency USD 4.58
REC is a Government Company and as per its Articles of Association, billion, which may not be sufficient to cater to the business requirements
the President of India has the power to appoint Chairman / Chairman of the Company. Therefore, increase in borrowing limit is required to be
& Managing Director of the Company and also Vice Chairman/ made in the Indian Rupees as well as foreign currency. Considering that
Managing Director, Whole time Functional Director and other Directors the current outstanding borrowings together with projected borrowings,
in consultation with the Chairman/Chairman and Managing Director. in Indian rupees and foreign currency, is likely to exceed the earlier
However, in accordance with the proviso of Regulation 17(1C) of SEBI approved limit of ₹4,50,000 crore in Indian Rupees and USD 16 billion in
LODR Regulations, effective from January 17, 2023, that a public sector foreign currency, consent of the Members is sought under Section 180(1)
Company shall ensure the approval of the shareholders for appointment (c) of the Companies Act, 2013, for increasing the borrowing limit in
of a person on the Board of Directors at the next general meeting. Indian rupees from ₹4,50,000 crore to ₹6,00,000 crore and any equivalent
22 23
foreign currency, from USD 16 billion to USD 20 billion, for the purpose of 2023 approved the above proposal and recommended the passing of Brief Profile of the Director(s) seeking appointment/reappointment, as set out in this Notice, in terms of SEBI (LODR) Regulations,
business of the Company. the Special Resolution at Item No. 8 of this notice, by Shareholders of the 2015 & Secretarial Standard-2.
Company.
All documents related to this business proposal shall be available for
inspection through electronic mode, from date of circulation of this Notice In view of the above, it is proposed to obtain the approval of shareholders
Name of the Shri Vijay Kumar Singh Shri Narayanan Thirupathy Shri Manoj Sharma
upto the date of AGM. for creation of mortgage and/or charge on all or any of the movable and/
or immovable properties, by passing Special Resolution set out at Item Director(s)
The Board of Directors of the Company in its Meeting held on July 26, 2023 No. 8 of this Notice. DIN 02772733 10063245 06822395
approved the above proposal and recommended the passing of the Special Item No. 9
Resolution at Item No. 7 of this notice, by Shareholders of the Company. Date of birth June 3, 1965 June 1, 1968 March 10, 1966
As per provisions of Section 42 of the Companies Act, 2013 read with Rule Age 58 years 55 Years 57 years
The Directors or Key Managerial Personnel or their relatives do not have any 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014
concern or interest, financial or otherwise, in passing of the said Resolution, and Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014, Date of first July 15, 2022 March 6, 2023 July 11, 2023
extent of their holding in the securities of the Company, if any. a company shall not make a Private placement of its securities unless the appointment
In view of the above, it is proposed to obtain the approval of shareholders proposed offer of securities or invitation to subscribe to securities has on the Board
for increasing the borrowing limit, by passing Special Resolution set out at been previously approved by the Shareholders of the Company by a
Special Resolution for each of the offers or invitations. However, in case of Qualification(s) Bachelor’s Degree in Electrical Engineering Bachelor's degree in Economics Chartered Accountant with a
Item No. 7 of this Notice.
offer or invitation for “non-convertible debentures”, it shall be sufficient if from IIT, Roorkee. from the University of Madras degree in law (LLB)
Item No. 8 the company passes a previous Special Resolution only once in a year for Detailed Shri V.K. Singh is the Director (Technical) Shri Narayanan Thirupathy has Shri Manoj Sharma is a Chartered
all the offer(s) or invitation(s) for such debentures during the year.
In terms of the provisions of Section 180(1)(a) read with Section 110 of profile of REC Limited since July 15, 2022. Prior to been working for the development Accountant with a degree in law
the Companies Act, 2013 and Rules made thereunder, a company cannot Therefore, it is proposed to pass a Special Resolution to enable the including his elevation, he was serving as Executive of poor, downtrodden people (LLB). He is currently working as
sell, lease or otherwise dispose off the whole or substantially the whole of Company to raise funds through private placement of unsecured/ skills and Director in the Company. He holds a for more than 35 years and is a Director (Commercial) in PFC.
the undertaking or undertakings of the company without the consent of secured non-convertible bonds/ debentures upto ₹1,05,000 crore, during capabilities Bachelor’s Degree in Electrical Engineering popular Television debater and
the Shareholders of the Company by way of a Special Resolution through a period of one year from the date of passing of this resolution, i.e. upto from IIT, Roorkee and has over 34 years of Social worker from Tamil Nadu. He has more than 31 years of
Postal Ballot. However, in terms of MCA Notification dated February 9, September 5, 2024, in one or more tranches, to such person or persons, experience in power sector. In PFC,
experience in the Indian power sector. He
2018, any item of business required to be transacted by means of postal who may or may not be the bond/debenture holders of the Company, Shri Narayanan Thirupathy is the he has handled multiple areas &
ballot, may be transacted at a general meeting by a company which is within the overall market borrowing programme, as may be approved joined REC on March 29, 2007 and prior to
joining REC, he had worked in Power Grid founder of a social forum called domains including institutional
required to provide the facility to members to vote by electronic means. by the Board of Directors of the Company, from time to time. Further, the “Theervu” which means Justice,
In terms of the provisions of Companies Act, 2013 and SEBI (LODR) said limit of ₹1,05,000 crore shall be within the overall revised borrowing Corporation of India Limited and NTPC appraisal & development, entity
Limited. through which he has created
Regulations, 2015, REC is providing the facility to its members to enable limit, being proposed for approval by the shareholders of the Company
awareness about the socio appraisal, legal & documentation,
them to vote on resolutions at the general meeting, by electronic means. at this AGM. taxation, budget, audit, preparation
Further, MoP vide its letter dated August economic and industrial policies
Accordingly, the Special Resolution for creation of mortgage and/or charge Further, the Board of Directors of the Company (the “Board”) or any 10, 2023, rechristened of the existing post of the country and popularised of financial statements & audit
on all or any of the movable and/or immovable properties of the Company, Committee duly constituted by the Board or such other authority as may reports, financial analysis, resource
is proposed to be passed in this AGM. of Director (Technical) of the Company as the concept of good governance
be approved by the Board shall be authorized to determine the terms of Director (Projects). with the people of Tamil Nadu. mobilization, debt syndication
The operations of the Company have increased substantially and in order the issue, including the class of investors to whom the bonds/debentures He is well known for his immense and consultancy assignments on
to meet the growing fund requirements of the Company, additional are to be allotted, the number of bonds/debentures to be allotted in As Director (Projects), he is responsible for
funds are required to be raised by creation of security on the immovable/ each tranche, issue price, tenor, interest rate, premium/discount to the contribution to create peace, financial/commercial aspects in
all technical functions of REC, including communal harmony and social
movable properties of the Company. Since the creation of charge / then prevailing market price, amount of issue, discount to issue price project & entity appraisal of renewable power sector. During the last 3
mortgage tantamount to otherwise disposing of the undertakings of to a class of bond/ debenture holders, listing, issuing any declaration/ justice. decades, he has been associated
energy, generation, transmission &
the Company, it is necessary to pass a Special Resolution under Section undertaking etc. required to be included in the Private Placement Offer
distribution projects, power sector value with entire spectrum of PFC’s loan
180(1)(a) of the Companies Act, 2013. Letter and to do and execute all such acts, deeds and things under any
other regulatory requirement for the time being in force. chain i.e. equipment manufacturing, coal assets, covering formulation of
Therefore, it is proposed to authorize the Board of Directors of the block financing etc; and infrastructure
Company to mortgage/create charge on immovable and/or movable lending policies, putting in place a
properties of the Company, both present and future, for securing loan All documents related to this business proposal shall be available for financing namely ports, airports, metro, policy framework to guide appraisal
up to ₹6,00,000 crore in Indian Rupees and in any foreign currency inspection through electronic mode, from date of circulation of this Notice hospitals, refinery etc; and financing with a structured format for
equivalent to USD 20 billion, for the purpose of business of the Company upto the date of AGM. activities including sanction, disbursement financial analysis, compliance with
or otherwise as per the requirements of Section 180(1)(a) of the The Directors or Key Managerial Personnel or their relatives do not have and project monitoring, business
applicable regulatory and statutory
Companies Act, 2013, Rules made there under and any other statutory any concern or interest, financial or otherwise in passing of the said development, Stressed Assets Management,
and procedural formalities to be complied with in this regard. Special Resolution, other than the extent of their holding in the securities Diversification and overall functioning of frameworks, monitoring conditions,
All documents related to this business proposal shall be available for of the Company, if any. the Company. He is also responsible for facilitating disbursement, resolution
inspection through electronic mode, from date of circulation of this Notice The Board of Directors of the Company in its Meeting held on July 26, key operational areas of Procurement, mechanism for stressed accounts.
upto the date of AGM. 2023 approved the above proposal and recommended the passing of Legal matters, IT system and Capacity He is Chairman of PFC Projects
The Directors or Key Managerial Personnel or their relatives do not have the Special Resolution at Item No. 9 of this notice, by Shareholders of the building business through RECIPMT. He is Limited, a subsidiary of PFC, an SPV
any concern or interest, financial or otherwise, in passing of the said Company. guiding the Program Management Division for submission of lenders’ backed
Resolution, other than the extent of their holding in the securities of the towards successful implementation of Govt. resolution plan by PFC for resolution
Company, if any. In view of the above, it is proposed to obtain the approval of shareholders
for private placement of securities, by passing Special Resolution set out Programs. of stressed assets.
The Board of Directors of the Company in its Meeting held on July 26, at Item No. 9 of this Notice. He has rich experience in transmission
project development & management,
TBCB process, procurement of goods &
By Order of the Board of Directors services, construction of EHV sub-stations
For REC Limited and transmission lines, financial aspects like
raising of bonds, commercial paper, ECB etc.
Nature of Shri V.K. Singh brings in expertise in various Shri Narayanan Thirupathy brings Shri Manoj Sharma brings in
expertise areas such as financial management, in expertise in various areas such expertise in various areas such as
J.S. Amitabh in specific power sector domain expertise, project as financial management, power financial management, power sector
Executive Director & Company Secretary functional appraisal, corporate planning & strategy, risk sector domain expertise, corporate domain expertise, project appraisal,
areas management, leadership, board practices planning & strategy, leadership, corporate planning & strategy, risk
Date : August 11, 2023 & governance, business development, board practices & governance, management, leadership, board
Place : REC World Headquarters environment & social areas. business development, environment practices & governance, business
Plot No. I-4, Sector 29, Gurugram, & social areas. development, environment & social
Haryana – 122001 areas.
24 25
Annexure to Notice
Terms & Shri V.K. Singh has been appointed as The terms & conditions of his Nominated by the Ministry of Power,
conditions of Director (Projects), in the scale of pay of appointment will be governed by Government of India, vide letter Instructions for members for remote e-voting, attending the 54th AGM through VC/OAVM and electronic voting during the AGM
appointment ₹180,000-340,000 (IDA), with effect from MoP Order dated March 3, 2022 and/ dated July 11, 2023.
and proposed the date of his assumption of charge of or any other Order(s) etc. issued by the A. Instructions for remote e-voting system prior to the 54th AGM
remuneration the post (July 15, 2022) till the date of his Government of India. He is entitled to receive sitting
fee in connection with the Board The remote e-voting period begins on Sunday, September 3, 2023 (0900 hours) and ends on Tuesday, September 5, 2023 (1700 hours).
to be paid superannuation i.e., June 30, 2025 or until The remote e-voting module shall be disabled by NSDL for voting thereafter. The members, whose names appear in the Register of
further orders, whichever is earlier. He is entitled to receive sitting fee or Committee meetings of REC
in connection with the Board or attended by him, as decided by the Members/Beneficial Owners as on the record date (cut-off ) date i.e. August 30, 2023, may cast their vote electronically. The voting right of
The terms & conditions of his appointment Committee mettings of REC attended Board from time to time. Further, shareholders shall be in proportion to their shareholding as on the said cut-off date.
will be governed by MoP Order dated July by him, as decided by the Board payment / reimbursement towards In order to vote electronically on NSDL e-Voting system, a two-step process needs to be followed as detailed under:
15, 2022 and/or any other Order(s) etc. from time to time. Further, payment air tickets, hotel accommodation,
issued by the Government of India. / reimbursement towards air tickets, hiring of vehicle, out-of-pocket Step 1: Access to NSDL e-voting system
hotel accommodation, hiring of expenses, local conveyance etc. in A) Login method for e-voting and joining virtual meeting for individuals holding shares in demat mode:-
veichle, out-of- pocket expenses, local respect of him attending such Board
conveyance etc. in respect of him or Committee meetings, would be In terms of SEBI circular dated December 9, 2020 on e-voting facility provided by listed entities, individual shareholders holding shares in
attending such Board or Committee borne by REC. demat mode are allowed to vote through their demat account maintained with Depositories / Depository Participants. Shareholders are
meetings, would be borne by REC. advised to update their mobile number and email address correctly in their demat accounts in order to access the e-voting facility.
Shareholding Not Applicable Not Applicable Not Applicable (i) Login method for individuals holding shares in demat mode is given below:
in the Type of Shareholders Login Method
Company
including as Individual shareholders 1. Existing IDeAS user can visit the e-Services website of NSDL viz. https://eservices.nsdl.com either on a personal
a beneficial holding securities in computer or on a mobile. On the e-Services home page click on the “Beneficial Owner” icon under “Login”
owner demat mode with NSDL which is available under ‘IDeAS’ section, this will prompt you to enter your existing User ID and Password. After
successful authentication, you will be able to see e-voting services under Value Added Services. Click on “Access to
Number 8 out of 8 Board meeting attended during 2 out of 2 Board meetings attended Not Applicable as appointed during e-voting” under e-voting services and you will be able to see e-voting page. Click on the company name i.e., REC
of Board his tenure starting from July 15, 2022. during his tenure starting March 6, FY 2023-24 Limited or e-voting service provider i.e., NSDL and you will be re-directed to e-voting website of NSDL for casting
meetings 2023. your vote during the remote e-voting period or joining virtual meeting & voting during the meeting.
attended 2. If you are not registered for IDeAS e-Services, option to register is available at https://eservices.nsdl.com. Select
during the FY “Register Online for IDeAS Portal” or click at https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp.
2022-23
3. Visit the e-voting website of NSDL. Open web browser by typing the URL: https://www.evoting.nsdl.com/ either on
Number of 11 out of 11 Committee meeting attended Not Applicable Not Applicable a personal computer or on a mobile. Once the home page of e-voting system is launched, click on the icon “Login”
Committee during his tenure starting from July 15, which is available under ‘Shareholder / Member’ section. A new screen will open. You will have to enter your User
meetings 2022. ID (i.e., your 16-digit demat account number held with NSDL), Password/OTP and a Verification Code as shown on
attended the screen. After successful authentication, you will be redirected to NSDL depository site, wherein you can see
during the FY e-voting page. Click on company name i.e., REC Limited or e-voting service provider i.e., NSDL and you will be
2022-23 redirected to e-voting website of NSDL for casting your vote during the remote e-voting period or joining virtual
meeting & voting during the meeting.
Directorship REC Power Development and Consultancy Not Applicable • Power Finance Corporation 4. Shareholders/Members can also download NSDL Mobile App “NSDL Speede” facility by scanning the QR code
held in other Limited Limited mentioned below for seamless voting experience.
companies / • PFC Projects Limited
listed entities • Jharkhand Infrapower Limited
• PFC Consulting Limited
• Bihar Mega Power Limited
• Deoghar Mega Power Limited
Details of listed Not Applicable Not Applicable Not Applicable

entities from
which resigned Individual shareholders 1. Existing users who have opted for CDSL Easi / Easiest, can login through their User ID and Password. Option will
in the past holding securities in be made available to reach e-voting page without any further authentication. The users to login Easi /Easiest are
demat mode with CDSL requested to visit CDSL website www.cdslindia.com and click on login icon & New System Myeasi Tab and then
three years user your existing my easi username & password.
Membership/ REC Power Development and Consultancy Not Applicable Power Finance Corporation Limited 2. After successful login of Easi/Easiest, the user will also be able to see the e-Voting option for eligible companies where
Chairmanship Limited e-voting is in progress as per the information provided by company. On clicking the evoting option, the user will be
of Committee • Risk Management Committee able to see e-Voting page of the e-Voting service provider for casting your vote during the remote e-Voting period or
• CSR Committee (Member) (Member) joining virtual meeting & voting during the meeting. Additionally, there is also links provided to access the system of
across all public all e-Voting Service Providers, so that the user can visit the e-Voting service providers’ website directly.
companies • Corporate Social Responsibility
other than REC 3. If the user is not registered for Easi/Easiest, option to register is available at CDSL website www.cdslindia.com and
Committee (Member) click on login & New System Myeasi Tab and then click on registration option.
• HR Committee (Member) 4. Alternatively, the user can directly access e-voting page by providing demat account number and PAN from a link
https://www.cdslindia.com available on home page. The system will authenticate the user by sending OTP on
• Investment Committee of registered mobile and email, as recorded in the demat account. After successful authentication, user will be provided
Director (Member) link for the respective ESP (E-voting Service Provider) i.e. NSDL where the e-voting is in progress.
Individual Shareholders You can also login using the login credentials of your demat account through your Depository Participant registered with
Relationship No inter-se relationship with any other No inter-se relationship with any No inter-se relationship with any (holding securities in NSDL/CDSL for e-voting facility. Upon logging in, please see if e-voting option is available. Click on the e-voting option,
with Directors Director or KMP of the Company other Director or KMP of the other Director or KMP of the demat mode) login you will be redirected to NSDL/CDSL site after successful authentication, wherein you can see e-voting feature. Click on
& KMP inter-se Company Company through their depository company name i.e., REC Limited or e-voting service provider i.e. NSDL and you will be redirected to e-voting website of
participants NSDL for casting your vote during the remote e-voting period or joining virtual meeting & voting during the meeting.
Note: Members who are unable to retrieve User ID / Password are advised to use “Forgot User ID” or “Forgot Password” option available at the above-mentioned website.
26 27
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository 4. Cast your vote by selecting appropriate options i.e. assent 4. Members who have voted through Remote e-voting will be
i.e. NSDL and CDSL. or dissent, verify/modify the number of shares for which eligible to attend the AGM. However, they will not be eligible
you wish to cast your vote and click on “Submit” and also to vote during the AGM.
Login type Helpdesk details “Confirm” when prompted.
5. The details of the person who may be contacted for any
Individual Shareholders holding securities in demat Members facing any technical issue in login can contact NSDL helpdesk by grievances connected with the facility for e-voting on the day
5. Upon confirmation, the message “Vote cast successfully” will
mode with NSDL sending a request at [email protected] or call at toll free no.: 022 - 4886 7000 be displayed. of the AGM shall be the same persons, as mentioned above
and 022 - 2499 7000 for Remote e-voting.
Individual Shareholders holding securities in demat Members facing any technical issue in login can contact CDSL helpdesk by 6. You can also take the printout of the votes cast by you by
clicking on the print option on the confirmation page. D. Process for those shareholders whose email ids are not
mode with CDSL sending a request at [email protected] or contact at 1800 22 55 33 registered with the depositories for procuring user id and
ii) Login Method for e-voting and joining virtual meeting for 3. A new screen will open. You will have to enter your User ID, 7. Once you confirm your vote on the resolution, you will not password and registration of e mail ids for e-voting for
shareholders (other than individual shareholders) holding your Password/OTP and a Verification Code as shown on the be allowed to modify your vote. the resolutions set out in this notice:
securities in demat mode and shareholders holding securities in screen. B. Instructions for members for attending the 54th AGM 1. In case shares are held in physical mode please provide
physical mode. through VC/OAVM are as under: Folio No., Name of shareholder, scanned copy of the share
Alternatively, if you are registered for NSDL e-services i.e. certificate (front and back), PAN (self- attested scanned copy
1. Visit the e-Voting website of NSDL. Open web browser by IDEAS, you can log-in at https://eservices.nsdl.com with your of PAN card), AADHAR (self attested scanned copy of Aadhar
1. Member will be provided with a facility to attend the AGM
typing the following URL: https://www.evoting.nsdl.com either existing IDEAS login. Once you log-in to NSDL e-services through VC/OAVM through the NSDL e-Voting system. Card) by email to [email protected].
on a Personal Computer or on a mobile. after using your log-in credentials, click on e-Voting and you Members may access the same at https://www.evoting.nsdl.com/ 2. In case shares are held in demat mode, please provide DPID-
can proceed to Step 2 i.e. Cast your vote electronically. under shareholders/members login by using the remote CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name,
2. Once the home page of e-Voting system is launched, click
on the icon “Login” which is available under ‘Shareholders/ 4. Details of User ID and Password for logging on to NSDL e-voting credentials. After successful login, you can see link client master or copy of Consolidated Account statement,
Member’ section. of “VC/OAVM” placed under “Join meeting” menu against PAN (self-attested scanned copy of PAN card), AADHAR (self-
e-voting Portal: Your User ID details are given below:- company name. The link for VC/OAVM will be available in attested scanned copy of Aadhar Card) to complianceofficer@
shareholder/member login where the EVEN of Company will recl.in. If you are an Individual shareholders holding securities
Manner of holding shares i.e. Demat User ID be displayed. Please note that the members who do not have in demat mode, you are requested to refer to the login
(NSDL or CDSL) or Physical the User ID and Password for e-Voting or have forgotten the method explained at step 1 (A) i.e. Login method for e-Voting
a) For Members who hold shares in 8 Character DP ID followed by 8 Digit Client ID User ID and Password may retrieve the same by following and joining virtual meeting for Individual shareholders
demat account with NSDL. For example: if your DP ID is IN300*** and Client ID is 12****** then your user ID is the remote e-Voting instructions mentioned in the Notice to holding securities in demat mode.
IN300***12******. avoid last minute rush. 3. Alternatively, shareholder/members may send a request to
b) For Members who hold shares in 16 Digit Beneficiary ID 2. Members are encouraged to join the Meeting through [email protected] for procuring user id and password for
demat account with CDSL. For example: if your Beneficiary ID is 12************** then your user ID is 12************** laptops for better experience. e-voting by providing above mentioned documents.
c) For Members holding shares in EVEN Number followed by Folio Number registered with the company 4. In terms of SEBI circular dated December 9, 2020 on e-Voting
3. Members will be required to allow camera and use Internet
Physical Form. For example: if folio number is 001*** and EVEN is 101456 then user ID is 101456001*** facility provided by Listed Companies, Individual shareholders
with a good speed to avoid any disturbance during the
holding securities in demat mode are allowed to vote
5. Password details for shareholders other than Individual NSDL or CDSL, click on “Forgot User Details/Password” meeting.
through their demat account maintained with Depositories
shareholders are given below: option available on www.evoting.nsdl.com. 4. Please note that participants connecting from mobile and Depository Participants. Shareholders are required to
a) If you are already registered for e-Voting, then you devices or tablets or laptop connecting via mobile Hotspot update their mobile number and email ID correctly in their
b) If you are holding shares in physical mode, click on
can use your existing password to login and cast your may experience Audio/Video loss due to fluctuation in demat account in order to access e-Voting facility.
“Physical User Reset Password option available on
vote. www.evoting.nsdl.com. their respective network. It is therefore recommended to General Guidelines for shareholders
use stable Wi-Fi or LAN Connection to mitigate any kind of
b) If you are using NSDL e-Voting system for the first c) If you are still unable to get the password by aforesaid aforesaid glitches of such kind. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are
time, you will need to retrieve the ‘initial password’ two options, you can send a request at evoting@nsdl. required to send scanned copy (PDF/JPG Format) of the relevant Board
which was communicated to you. Once you retrieve co.in mentioning your demat account number/folio 5. Shareholders who would like to express their views/ask Resolution/ Authority letter etc. with attested specimen signature
your ‘initial password’, you need to enter the ‘initial number, PAN, Name and registered address. questions during the meeting may register themselves as of the duly authorized signatory(ies) who are authorized to vote, to
password’ and the system will force you to change a ‘Speaker’ and may send their request mentioning their the Scrutinizer by e-mail to [email protected] with a copy
your password. d) Members can also use OTP (One-Time Password) name, demat account number/folio number, email id, marked to [email protected]. Institutional shareholders (i.e. other
based login for casting the votes on the e-Voting mobile number at [email protected] atleast 48 hours than individuals, HUF, NRI etc.) can also upload their Board Resolution
c) How to retrieve your ‘initial password’? system of NSDL. before the Meeting. Those shareholders who have registered / Power of Attorney / Authority Letter etc. by clicking on “Upload Board
(i) If your email ID is registered in your demat themselves as a Speaker, will only be allowed to express their Resolution / Authority Letter” displayed under “e-Voting” tab in their
7) After entering your password, tick on Agree to “Terms and
account or with the company, your ‘initial views/ask questions during the meeting. login.
Conditions” by selecting on the check box.
password’ is communicated to you on your C. Instructions for members for voting through electronic It is strongly recommended not to share your password with any other
email ID. Trace the email sent to you from 8) Now, you will have to click on “Login” button.
voting system during the 54th AGM person and take utmost care to keep your password confidential.
NSDL from your mailbox. Open the email 9) After you click on the “Login” button, Home page of e-Voting Login to the e-voting website will be disabled upon five unsuccessful
and open the PDF file. The password to open will open. 1. Once discussion on all the items of Notice is completed in attempts to key in the correct password. In such an event, you will
the PDF file is your 8 digit client ID for NSDL the Meeting, every Resolution will be put to vote through need to go through the “Forgot User Details/Password” or “Physical
account, last 8 digits of client ID for CDSL Step 2: Cast your vote electronically and join General Meeting on electronic voting system during the AGM. Corporate User Reset Password” option available on www.evoting.nsdl.com to
account or folio number for shares held in NSDL e-Voting system Members are requested to send a certified copy of the Board reset the password.
physical form. The PDF file contains your resolution/authorization letter to the Scrutinizer through
‘User ID’ and your ‘initial password’. 1. After successful login at Step 1, you will be able to see all In case of any queries, you may refer the Frequently Asked Questions
e-mail at [email protected] with a copy marked to (FAQs) for shareholders and e-Voting user manual for shareholders
the companies “EVEN” in which you are holding shares and [email protected].
(ii) If your email ID is not registered, please whose voting cycle and General Meeting is in active status. available at the download section of www.evoting.nsdl.com or
follow steps as mentioned below in process 2. The procedure for e-voting on the day of the AGM is same as call on.: 022 - 4886 7000 and 022 - 2499 7000 or send a request at
for those shareholders whose email ids are 2. Select “EVEN” of company for which you wish to cast the instructions mentioned above for remote e-voting. [email protected] or contact Shri Amit Vishal, Senior Manager or
not registered. your vote during the remote e-Voting period and casting Ms. Pallavi Mhatre, Manager, National Securities Depository Limited,
your vote during the General Meeting. For joining virtual 3. Only those members/shareholders, who will be present in Trade World, ‘A’ Wing, 4th Floor, Kamala Mills Compound, Senapati
6) If you are unable to retrieve or have not received the “Initial meeting, you need to click on “VC/OAVM” link placed under the AGM through VC/OAVM facility and have not cast their Bapat Marg, Lower Parel, Mumbai – 400013, at the designated email
password” or have forgotten your password: “Join General Meeting”. vote on the resolutions through remote e-voting and are IDs: [email protected] or [email protected] or [email protected].
a) If you are holding shares in your demat account with otherwise not barred from doing so, shall be eligible to vote Members may also write to the Company Secretary at the Company’s
3. Now you are ready for e-Voting as the Voting page opens. through electronic voting system during the AGM. email address at [email protected].
28 29
Board’s Report 1.5 Policy initiatives
The policy framework of the Company is constantly reviewed,
capital adequacy assessment process policy’, ‘investment
of short term surplus funds policy’, ‘long term investment
policy on Maharatna status’, ‘expected credit loss (ECL) policy
updated and strengthened, to enhance business value and to
To along with assumption/ parameters for computation of ECL’,
meet the statutory requirements and amendments thereto.
‘interest rate policy for long term and short term loans’, ‘policy
The Shareholders, During the financial year 2022-23, the Company for extension in scheduled DCCO/COD’, ‘credit policy for
Your Directors have pleasure in presenting the Fifty Fourth Annual Report together with the Audited Financial Statements of your Company strengthened its corporate governance framework, with power generation projects in state sector’ and ‘outsourcing
for the financial year ended on March 31, 2023. amendment in materiality of related party transactions & policy for non-IT support & peripheral services’ etc.
dealing with Related Party Transactions policy and adoption
During the year under review, the Company also updated its
1. PERFORMANCE HIGHLIGHTS of Environment, Social and Governance (ESG) Policy.
HR related policies.
1.1 Summary of performance In order to enhance the competitive position in the
2. FINANCIAL REVIEW
market, the Company has modified, updated or introduced
The highlights of performance of your Company for the financial year 2022-23, with comparative position of previous year’s business oriented policies e.g. ‘financial assistance to 2.1 Summary of Financial Results
performance, were as under: DISCOMs for clearance of outstanding dues under late The summary of audited financial results of the Company
(₹ in crore) payment surcharge policy’, ‘long term investment policy’, for the financial year 2022-23, vis-à-vis the previous financial
Parameter FY 2022-23 FY 2021-22 ‘scale based regulations compliance policy and internal year, is given as under:
Loans Sanctioned 2,68,460.54 54,421.76 (₹ in crore)
Disbursements 96,846.30 64,150.21
Particulars Standalone Consolidated
Recoveries (including interest) 82,910.87 91,681.72
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Total Operating Income 39,208.06 39,132.49
Profit Before Tax 13,738.77 12,424.90 Revenue from Operations 39,208.06 39,132.49 39,478.26 39,269.05
Profit After Tax 11,054.64 10,045.92 Other Income 44.67 97.96 41.90 70.15
Total Comprehensive Income 10,083.60 9,986.85 Total Income 39,252.73 39,230.45 39,520.16 39,339.20
Finance Costs 23,737.66 22,052.91 23,733.33 22,050.96
1.2 Financial performance ₹10/- each, by capitalizing a sum not exceeding ₹658,30,60,000
Net translation / transaction exchange loss 1,114.04 799.05 1,114.04 799.05
out of the sum standing to the credit of its ‘Securities Premium
The Total Operating Income of your Company for the financial Fees and Commission Expense 16.29 16.73 16.29 16.73
Account’. The said bonus shares rank pari-passu with the existing
year 2022-23 was ₹39,208.06 crore, as compared to ₹39,132.49
fully paid equity shares of the Company. Net loss on fair value changes - - - -
crore during the financial year 2021-22.
Accordingly, after above bonus issue, the issued and paid-up Impairment on financial instruments 114.91 3,473.31 142.17 3,470.02
The Profit after Tax and Total Comprehensive Income for the
share capital of the Company increased to ₹2,633.22 crore, Other Expenses 531.06 463.55 616.66 560.10
financial year 2022-23 were ₹11,054.64 crore and ₹10,083.60
consisting of 2,63,32,24,000 equity shares of ₹10/- each. As Total Expenses 25,513.96 26,805.55 25,622.49 26,896.86
crore respectively, as compared to ₹10,045.92 crore and
on March 31, 2023, Power Finance Corporation Limited, a
₹9,986.85 crore for the financial year 2021-22. Share of Profit / Loss of Joint Venture accounted for using equity method - - - (11.81)
Government of India undertaking, held 52.63% of the paid-up
Earnings Per Share (EPS) for the financial year ended March equity share capital of the Company, comprising of 1,38,59,93,662 Profit Before Tax 13,738.77 12,424.90 13,897.67 12,430.53
31, 2023 was ₹41.85 per share of ₹10/- each, as against EPS of equity shares of ₹10/- each and the balance 47.37% paid-up Tax Expenses (2,684.13) (2,378.98) (2,730.69) (2,394.83)
₹38.02 per share for the last year. Net Worth of the Company equity share capital was held by public shareholders.
Profit After Tax 11,054.64 10,045.92 11,166.98 10,035.70
as on March 31, 2023 has increased to ₹57,679.67 crore, i.e.,
1.4 Dividend Other Comprehensive Income for the period (971.04) (59.07) (971.04) (57.90)
13.13% higher than the Net Worth of ₹50,985.60 crore as on
March 31, 2022. For the financial year 2022-23, the Board of Directors of your Total Comprehensive Income 10,083.60 9,986.85 10,195.94 9,977.80
Company recommended a final dividend of ₹4.35/- per equity Add: Opening Balance of Retained Earnings and Other 6,675.66 4,225.00 6,946.34 4,504.73
The Gross Loan Asset Book of your Company as on March 31,
share of face value of ₹10/- each (43.5% of the paid up share Comprehensive Income
2023 was ₹4,35,011.79 crore, as compared to ₹3,85,371.26
capital), which is subject to approval of the shareholders
crore as on March 31, 2022. Further, the outstanding Amount available for appropriation 16,759.26 14,211.85 17,142.28 14,482.53
in the ensuing 54th Annual General Meeting. The above
borrowings as on March 31, 2023 were ₹3,74,616.42 crore. Less: Appropriations
is in addition to the 1st Interim Dividend of ₹5.00/- per equity
1.3 Share capital share (50% of the paid up share capital) paid on November Special Reserve created u/s 36(1)(viii) of the Income Tax Act, 1961 (2,674.96) (3,080.70) (2,674.96) (3,080.70)
24, 2022 and 2nd Interim Dividend of ₹3.25/- per equity share Reserve for bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 - - - -
As on March 31, 2023, the authorized share capital of the
(32.5% of the paid up share capital) paid on February 28, 2023.
Company was ₹5,000 crore, consisting of 500 crore equity Reserve Fund u/s 45-IC of Reserve Bank of India Act, 1934 (2,211.15) (2,010.00) (2,211.15) (2,010.00)
shares of ₹10/- each. The total dividend for the financial year 2022-23, including Debenture Redemption Reserve - - - -
the proposed final dividend, amounting to ₹12.60 per share
During the financial year, pursuant to comprehensive guidelines General Reserve - - - -
of face value of ₹10/- each, which is 126% (post bonus) of the
on Capital Restructuring by CPSEs issued by the Department of Impairment Reserve - - - -
paid-up share capital of the Company against a dividend of
Investment and Public Asset Management (DIPAM), Ministry
₹11.48 per share of face value of ₹10/- each, paid in previous Issue expenses on Perpetual Debt Instruments (net of taxes) - - - -
of Finance, Government of India and based on the audited
year, which was 114.8% of the post bonus paid-up share
financial statements of the Company for the previous year, with Coupon payment on Instrument Entirely Equity in Nature (Perpetual (33.30) (34.12) (33.30) (34.12)
capital of the Company.
the approval of shareholders, the Company had issued bonus Debt Instruments) (Net of Taxes)
shares to its shareholders in the month of August 2022, in the The total dividend pay-out for the financial year 2022- Sub-total: Appropriations (4,919.41) (5,124.82) (4,919.41) (5,124.82)
ratio of 1:3, i.e., one (1) bonus equity share of ₹10/- each fully 23, including the proposed final dividend, would be
Less: Dividend payments to Owners (3,120.37) (2,411.37) (3,120.37) (2,411.37)
paid-up for every three (3) existing equity shares of ₹10/- each ₹3,317.86 crore. The dividend is paid in accordance with the
fully paid-up and consequently issued 65,83,06,000 (sixty five Company’s Dividend Distribution Policy, which is available at Closing Balance of Retained Earnings and Other Comprehensive 8,719.48 6,675.66 9,102.50 6,946.34
crore eighty three lakh six thousand only) new equity shares of https://recindia.nic.in/uploads/files/Dividend_Distribution_Policy.pdf. Income
30 31
2.2 Contribution to National Exchequer was 6.94%. Further, during the financial year 2022-23, your Management of Proceeds: The net proceeds from the Bonds of USD 450 Million amounting to ₹2,894 crore were allocated against
company had raised funds of ₹25,291.30 crore through listed the following projects as on March 31, 2023:
During the financial year 2022-23, the Company
bonds, at a cost 7.63% p.a., which is 16 bps lower than the rates (₹ in crore)
contributed an amount of ₹2,805.76 crore to the National
of similarly rated instruments issued by other CPSEs/entities Sl. No. Location Capacity Loan sanction Annual energy Sanction Outstanding
Exchequer, which included ₹2,734.75 crore towards direct
(margin over Reuters). (in MW) date generation in amount Amount
taxes and ₹71.01 crore towards GST.
MWh
2.3 Ratio analysis 2.4.4 Cash credit facilities A. SOLAR
1 Karimnagar, Telangana 15 11.11.2016 26,554.53 89.84 59.20
A comparative statement of significant ratios of the Company The Company has an approved cash credit / working capital 2 Telangana 30 21.09.2016 54,073.69 179.62 124.12
for the financial year 2022-23 vis-à-vis the previous financial demand loan / overdraft limit of ₹10,657.65 crore from various 3 Telangana 30 21.09.2016 57,251.93 179.62 124.39
year, is given below: banks for its day-to-day operations, out of which ₹3,679.75 4 Warangal, Telangana 15 11.11.2016 24,110.55 89.84 59.37
crore was availed as on March 31, 2023. 5 Andhra Pradesh 500 24.02.2016 6,55,195.74 2,480.00 1,486.80
Particulars FY 2022-23 FY 2021-22 6 Karimnagar, Telangana 15 11.11.2016 29,023.23 89.84 59.18
2.4.5 Perpetual Debt Instruments 7 Ranga Reddy, Telangana 5 27.01.2016 6,181.16 26.90 17.93
Earnings Per Share (₹) 41.85 38.02^ 8 Medak, Telangana 7 26.11.2015 12,018.33 39.90 25.93
Your Company had raised an amount of ₹558.40 crore by 9 Karimnagar, Telangana 15 11.11.2016 29,404.49 89.84 59.19
Return on Average Net Worth (%) 20.35 21.28 issue of 5,584 Perpetual Debt Instruments (PDI) (Series 206) of 10 Chitradurga, Karnataka 30 17.04.2017 28,477.90 150.39 105.48
Book Value per Share (₹) 219.05 193.63^ face value of ₹10 lakh each, which carry coupon rate of 7.97%. 11 Mansa and Sangrur, Punjab 50 21.05.2016 78,675.84 169.69 112.16
As on March 31, 2023, the said instruments form 1.00% of the 12 Kudligi, Karnataka 20 31.12.2018 42,662.45 84.00 65.45
Debt Equity Ratio (times)* 6.49 6.41 Tier-I capital of the Company. These PDI have no maturity and 13 Belgaum, Karnataka 15 31.12.2018 32,079.46 63.86 49.87
Price Earnings Ratio (times) #
2.75 2.42 are callable only at the option of the Company after 10 years 14 Bagalkot, Karnataka 15 31.12.2018 32,141.35 64.08 50.05
and relevant detailed disclosure on PDI is appearing in note 15 Bagalkot, Karnataka 15 31.12.2018 32,521.15 66.41 52.17
Interest Coverage Ratio (times) 1.58 1.56 16 Thoothukkudi, Tamil Nadu 252 29.12.2017 5,28,272.25 520.00 467.54
no. 25 of the notes to accounts of the standalone financial
*Net debt represents principal outstanding, less cash and cash equivalent
Sub-total (A) 16,68,644.05 4,383.83 2,918.81
statements forming part of this Annual Report. B. WIND
available.
2.4.6 Green Bonds issued by REC 1 Mandsaur, Madhya Pradesh 20 28.01.2016 20,444.16 86.63 47.02
#
PE Ratio is calculated based on closing price of REC’s Equity Share at
Sub-total (B) 20,444.16 86.63 47.02
NSE, as on March 31, 2023 and as on March 31, 2022 respectively.
In alignment with India’s Climate action plan to increase C. RENEWABLE PURCHASE OBLIGATIONS
^Figures are adjusted on account of issue of bonus shares in the ratio of 1:3. the renewable energy capacity with an ultimate objective 1 Maharashtra RPO 24.07.2017 500.00 62.50
to reduce the carbon emissions and carbon intensity, REC Sub-total (C) 500.00 62.50
2.4 Resource mobilization Grand total (A+B+C) 16,89,088.20 4,970.46 3,028.33
raised USD 750 Million in April 2023 for a tenor of five years
2.4.1 Total resource mobilization during the year through USD Green Bonds. These bonds are listed exclusively REC is compliant with the requirements of its Green bond market price higher than its purchase price, thus resulting in
at IFSC Stock exchanges, i.e., India INX and NSE IFSC in GIFT framework as per its continuing obligations to ensure that cumulative gain of ₹4.70 crore.
During the financial year 2022-23, the Company mobilized
City, Gandhinagar, Gujarat. The bond issuance was the first the amount raised through Green Bonds remains invested in
funds of ₹86,984 crore from the market. This included ₹10,036 Other details of investments made by the Company are
Green Bond issuance by an Indian Company post India’s the eligible projects as per the Green bond framework during
crore from External Commercial Borrowings in different appearing in note no. 10 of the notes to accounts of the
G20 Presidency and the largest ever Green Bond Tranche by the tenor of bonds.
currencies, long and short rupee term loans from banks standalone financial statements.
a South & South-East Asian issuer. The proceeds from these 2.4.7 International Cooperation & Development
and financial institutions of ₹22,911 crore and ₹1,250 crore 2.7 Financial status at the close of the year
bonds are being utilized towards eligible green projects in
(including ₹100 crore short term loan rolled over for 1 year accordance with REC’s Green Finance Framework. Your Company has five lines of ODA (Official Development
At the close of the financial year 2022-23, the total resources
during FY 2022-23) respectively, ₹12,154 crore from Capital Assistance) credit with KfW, Germany, four of them have been
Annual Impact Reporting for Green Bonds of your Company stood at ₹4,64,877.13 crore.
Gains Tax Exemption Bonds, ₹25,545 crore (after adjusting fully drawn as on March 31, 2023. In financial year 2021-22,
discount) from Institutional Bonds, ₹15,088 equivalent to REC entered into a fifth loan agreement with KfW for financial Out of this, equity share capital contributed ₹2,633.22 crore,
REC had raised USD 450 million Green Bond in July 2017 for
USD 1,800.00 million and EUR 69.77 million from FCNR (B) loans. assistance of USD 169.50 million. Apart from the above, REC instruments entirely equity in nature comprised ₹558.40
a tenor of ten years, which are listed on the International has two lines of ODA credit with JICA, Japan. Both of them have crore, other equity including Reserves & Surplus stood at
2.4.2 Redemption and pre-payment Securities Market (ISM) segment of London Stock Exchange also been fully drawn and repaid. ₹54,488.05 crore, financial liabilities including borrowings
and Singapore Stock Exchange. and other financial liabilities accounted for ₹4,06,987.95 crore
During the financial year 2022-23, the Company repaid a 2.5 Domestic and International Credit Rating
Use of Proceeds: The proceeds have been utilized to finance and non-financial liabilities including provisions stood at
sum of ₹46,520.32 crore. This includes repayment amounting The domestic debt instruments of REC continued to enjoy ₹209.51 crore.
Solar, Wind and Renewable Purchase Obligations including
to ₹21,405.40 crore towards Institutional Bonds, ₹1,501.66 “AAA” rating, the highest rating assigned by CRISIL, CARE,
refinancing of eligible projects as defined in the Green Bond These funds were deployed as financial assets including
crore towards Tax-free Bonds, ₹3.36 crore towards Capital India Ratings & Research & ICRA-credit rating agencies
framework of REC, contributing to positive environmental long-term and short-term loans, investments etc. of
Gain Tax Exemption Bonds, ₹2,789.95 crore towards External throughout the financial year 2022-23.
impact and also strengthening India’s energy security by ₹4,60,591.12 crore and non-financial assets including
Commercial Borrowings, equivalent of USD 350.00 Million, reducing fossil fuel dependency. Further, REC enjoys international credit rating from property, plant & equipment, tax assets etc. of ₹4,285.67
₹10,383.72 crore of FCNR loans equivalent of USD 1300.00 international credit rating agencies Moody’s and FITCH crore, besides asset classified as held for sale, amounting to
Million and ₹146.23 crore of Official Development Assistance KPMG, India has provided its post-verification Independent of “Baa3” and “BBB-” respectively, which is at par with the ₹0.34 crore.
(ODA) loan equivalent of USD 12.00 Million, Euro 5.26 million Assurance Report based on the Green bond framework of REC sovereign rating of India. There was no revision in the ratings
and the same has also been certified by the Climate Bonds assigned to REC during the financial year 2022-23. 3. LOANS SANCTIONED
and JPY 188.58 million. The Company also repaid long term
loans amounting to ₹10,290 crore to various banks. Standard Board of Climate Bond Initiative on July 17, 2018. 2.6 Investments made during the financial year 2022-23 During the financial year 2022-23, the Company has sanctioned
loans worth ₹2,68,460.54 crore.
2.4.3 Cost of borrowing In accordance with the Green Bond framework, REC has In terms of RBI’s circular on High Quality Liquid Assets (HQLAs)
created a ‘Green Portfolio’, managed through a well laid during the financial year 2022-23, Company has invested in The loans sanctioned for the financial year 2022-23 includes
The overall weighted average annualized cost of funds for internal tracking system, updated on regular basis, to monitor, State Development Loans and Perpetual Bonds. ₹34,529.33 crore towards generation projects, ₹21,371.11
the outstanding borrowing as on March 31, 2023 was 7.28% establish and account for the allocation of the proceeds for crore towards renewable energy projects, ₹1,22,050.50 crore
Further, 24,91,604 no. equity shares held in NHPC Limited towards T&D projects including the loans under Revolving
and for the funds raised during the financial year 2022-23 such Green Portfolio. were sold through stock exchange mechanism, at prevailing Bill Payment Facility and Late Payment Surcharge, ₹85,734.60
32 33
crore towards Infrastructure & Logistics projects and ₹4,775.00 (₹ in crore) For the purpose of funding, your Company has classified the stage and the size of disbursement, etc. Additionally, to
crore towards other loans such as short-term, medium-term Sl. Name of the borrower REC’s Remarks utilities/entities into A++, A+, A, B & C categories. During the ensure efficient monitoring of private sector projects,
loans etc. Details of category-wise sanctions during the year no. and project exposure financial year 2022-23, your Company has completed grading Lender's Engineers and Lender's Financial Advisors, being
are appearing subsequently in this report. 1 South-East UP Transmission 922.09 Resolved in respect of 143 utilities (excluding State Government), out independent organizations, are also appointed.
4. DISBURSEMENTS Company Limited under IBC of which 20 utilities were graded as A++, 38 as A+, 30 as A,
(Transmission Project) 19 as B, 32 utilities as C category and 1 utility as D category. 7. FINANCING ACTIVITIES DURING THE YEAR
During the financial year 2022-23, the Company disbursed an 2 Jhabua Power Limited 321.04 Resolved Further, 3 utilities were non-responsive, therefore not graded.
amount of ₹96,846.30 crore, as against ₹64,150.21 crore in the (600 MW Thermal Power under IBC Your Company has been providing funding assistance for
previous financial year. 6.3 Project Monitoring power generation (including conventional and renewable
Plant in Madhya Pradesh)
3 Ind Barath Energy (Utkal) 777.00 Resolved Being a leading financial institution, REC has developed an energy), transmission and distribution projects, Infrastructure
The disbursements for financial year 2022-23 includes
Limited under IBC elaborate and comprehensive project-monitoring framework, and Logistics projects including for the electrification of
₹25,049.27 crore towards generation projects, ₹12,984.89
crore towards renewable energy projects, ₹27,502.84 crore (700 MW Thermal Power which aims to ensure timely completion of projects, reduce villages and under the various schemes of the Government
towards T&D projects, ₹1,453.29 crore towards Power Plant in Odisha) risks and mitigate cost overruns in the projects. It is also the of India. Details of major financing activities during the year
Infrastructure projects and ₹29,621.37 crore towards other 4 Gati Infrastructure Private 178.26 Over-dues Company’s endeavour to reduce the cost of electricity for under review were as under:
loans including short term, RBPF etc. The disbursements Limited have been the end consumer, benefitting nation in terms of industrial
(110 MW Hydro Project in fully paid growth and increased per capita electricity consumption. 7.1 Generation
also included ₹234.64 crore of counter-part funding under
DDUGJY (including DDG component) and SAUBHAGYA Sikkim) by the During the financial year 2022-23, your Company sanctioned
company The Project Monitoring guidelines adopted by the company
schemes of the Government of India. 76 nos. of loans towards generation projects including
5 ATN International Limited 9.45 Resolved covers whole gamut of steps for overall rigorous monitoring
Apart from above, during the financial year 2022-23, the of projects. The frequency of monitoring is finalised based on hydropower projects, implementation of pollution control
through
Company also disbursed subsidy of ₹1,065.56 crore received various factors like loan sector, type of project, construction equipment, renovation & modernization schemes, irrigation
OTS
from the Government of India under DDUGJY scheme outside
(including DDG component) and SAUBHAGYA scheme of the IBC
Government of India. 6 Silicon Valley Infotech 2.91 Resolved
5. RECOVERIES Limited through
OTS
5.1 Recoveries during the year
outside
Your Company gives utmost priority to timely realization of IBC
its dues towards principal, interest, etc. During the financial TOTAL 2,210.75
year 2022-23, the amount due for recovery including interest
for Standard Assets (Stage I & II) was ₹83,138.84 crore, as 6. APPRAISAL AND MONITORING SYSTEM
compared to ₹92,696.37 crore during the previous financial 6.1 Appraisal system for financing private sector projects
year. The Company recovered a total sum of ₹82,910.87 crore
towards Standard Assets (Stage I & II) during the year, as Your Company has its own guidelines for appraisal of private
against ₹91,681.72 crore in the previous financial year. The sector projects. The appraisal of the promoter or entity is
Company achieved recovery rate of 99.73% for the financial carried out on the basis of financial performance, credit-
year 2022-23. The principal overdues from defaulting worthiness, management proficiency and sectoral experience
borrowers pertaining to Standard Assets (Stage I & II) as on of the promoter entities. The project appraisal is carried out
March 31, 2023 were ₹167.74 crore. Further, an amount of on the basis of various technical parameters like statutory
₹1,786.72 crore has been recovered from Credit Impaired clearances, PPA, infrastructure etc. Thus, ‘Integrated Rating’ of
Assets (Stage III) in the financial year 2022-23, as compared to the project is arrived at, on the basis of combined ratings of
₹265.33 crore recovered in the previous financial year. entity and project. REC’s interest rates and security structure
are linked to the grades or integrated ratings assigned to
5.2 Credit Impaired Assets private sector projects. Further, during the financial year
2022-23, the Entity Appraisal Guidelines for financing the REC financed 800 MW Dr. Narla Tata Rao Thermal Power Station Stage-V Project at Vijayawada
Your Company’s Credit Impaired Assets (Stage III) continue
to be at low levels. The Company has created “Impairment Private sector projects were also reviewed and modified as
per the best market practices. projects etc. and sanctioned total loan assistance of installed generation capacity aggregating to 6,488 MW &
Reserve” from its profits, which is higher than the minimum ₹34,529.33 crore, as per details given below: some infra projects, with total loan assistance of ₹21,371.11
requirement specified under Income Recognition, Asset 6.2 Grading of state power utilities, JVs, companies, entities etc. (₹ in crore) crore, as per details given below:-
Classification and Provisioning (IRACP) Norms (including
Your Company has a well-defined policy and guidelines for Particulars No. of Loans Loan amount (₹ in crore)
standard asset provisioning) issued by RBI.
grading of State power utilities (excluding State Discoms, Particulars No. of Loans Loan
As on March 31, 2023 the Gross Credit Impaired Assets (Stage State Electricity Boards / Utilities with integrated operations State Sector 74 29,839.53
amount
III) were ₹14,892.08 crore, which is 3.42% of Gross Loan Assets; and Power Departments). The grading of State power utilities - Fresh Loan(s) 69 25,684.10
and Net Credit Impaired Assets (Stage III) were ₹4,372.57 (generation, transmission, trading, holding company etc.) is State Sector 4 2,394.03
- Additional Loan(s) 5 4,155.43
crore, which is 1.01% of the Gross Loan Assets. carried out twice during a year, based on the evaluation of the
Private Sector 2 4,689.80 - Fresh Loan(s) 4 2,394.03
utility’s performance against specific parameters, operational
5.3 Stressed Asset Management
and financial performance, regulatory compliances, annual - Fresh Loan(s) 2 4,689.80 Private Sector 31 18,977.08
REC continuously works towards resolution of stressed financial results etc. With regard to State power distribution
assets, through various frameworks including RBI framework utilities (including SEBs / utilities with integrated operations - Additional Loan(s) 0 - - Fresh Loan(s) 14 14,508.53
and resolution under Insolvency and Bankruptcy Code (IBC). and Power Departments), your Company adopts the final Total 76 34,529.33 - Takeout financing 17 4,468.55
REC has been able to contain its NPAs at minimum level, i.e., annual integrated ratings carried out by independent rating
one of the lowest among peer organizations in power sector. agencies, after approval of framework and rating by the 7.2 Renewable Energy Total 35 21,371.11
During the financial year 2022-23, REC has successfully Ministry of Power, Government of India. The rating framework
for integrated rating of discoms have been reviewed and During the financial year 2022-23, your Company has The above loans includes 16 solar energy projects with
resolved and upgraded six stressed power projects, as per
the details given hereinafter: modified by external consultant. sanctioned 35 nos. of Renewable Energy projects with aggregate capacity of 3,099 MW, 9 wind energy projects with
34 35
aggregate capacity of 449 MW, 1 solar wind hybrid project 1,200 MW and 1 Electrical component of Airport Infra, 1
of 300 MW capacity with battery energy storage system, Compressed Biogas (CBG) production plant, 4 E-mobility
1 Pumped Storage Project (PSP) with aggregate capacity projects for procurement of 2,350 electric vehicles.
of 1,440 MW, 2 Solar Park infra with aggregate capacity of
REC funded Mumbai Metro Project
Further, there is a huge potential in development of Distribution is all the more focused area of power sector, with
Infrastructure & Logistics sector through GoI flagship several reforms at the discoms level under the Government of
programmes such as Bharatmala Yojana, Sagarmala Yojana, India’s flagship programme, such as Revamped Distribution
etc. Under National Infrastructure Pipeline (NIP), sectors Sector Scheme (RDSS). Therefore, T&D segment shall play a
such as Energy, Roads, Airports, Ports and Railways etc. will significant role in making the sector reliable, affordable and
contribute to around 70% of the total projected capital capable of absorbing envisaged future growth.
REC funded 100 MW Wind Energy Project in Rajasthan expenditure of around ~₹111 Lakh crore in Infrastructure &
Your Company, as the fund channelizing agency to various
Logistics sectors in India.
schemes of the Ministry of Power, Government of India,
7.3 Transmission & Distribution Company has sanctioned ₹85,734.60 crore in FY 2022-23
Your Company will further align its operations in plays an active role in creating new infrastructure and
During the financial year 2022-23, your Company has in several large-scale Infrastructure projects in areas such achieving the infrastructure development objectives of augmentation/strengthening of the existing network. Your
sanctioned 408 nos. of Transmission & Distribution (T&D) as development of Highway, Metro rail systems, Airports, the Government of India under various schemes, for the Company finances entire gamut of T&D projects, broadly with
schemes/projects involving a total loan assistance of IT Communication, Social & Commercial Infrastructure overall development of economy. the objectives of system improvement and augmentation,
₹1,22,050 crore including projects under RDSS, LPS and RBPF (Educational Institution, Hospitals), Ports, etc. loss reduction measures, IT based system implementation,
7.5 Short / Medium Term Loans and other loan assistance
schemes of the Government of India. consumer satisfaction etc., thus playing a significant role in
Details of Infrastructure & Logistics loans sanctioned during
Your Company has also sanctioned 14 nos. of short-term, the development and sustainability of the power sector and
Details of loans sanctioned under T&D category during the the financial year 2022-23 are given below:- medium term, special loans and other loans aggregating to overall socio-economic progress of the country.
financial year 2022-23 are given below:- (` in crore)
₹4,775 crore to various power utilities during the ﬁnancial
(₹ in crore) Particulars No. of Loan 8.1 Major reforms in the Distribution Sector
year 2022-23, towards their short-term or medium-term fund
Particulars No. of Loan Loans amount requirement, working capital requirement etc.
The Government has implemented various schemes and
Loans amount State Sector 28 82,734.60 7.6 Financing activities in North Eastern States programmes in the recent past, to improve the financial
State Sector 408 1,22,050.50 - Refinery 1 7,500.00 and operational performance of distribution companies
The total financial assistance sanctioned by your Company
- Transmission Loan(s) 221 8,463.75 - Hospitals 1 2,785.00 (DISCOMs). The policy framework of Government to support
during the financial year 2022-23 includes a sum of ₹751
distribution sector includes initiatives like Deendayal
- Distribution Loan(s) 135 15,943.44 - Education Institutions 2 675.51 crore towards various projects in the North Eastern States.
Upadhyaya Gram Jyoti Yojana (DDUGJY), Pradhan Mantri
- Metro The disbursement towards various projects in the North
- Loans under LPS 21 57,190.31 Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), Ujwal DISCOM
Eastern States during the financial year 2022-23, including
 E&M 9 14,434.00 Assurance Yojana (UDAY), Integrated Power Development
- RBPF 31 40,453.00 against projects sanctioned in earlier years, were ₹250.56
 Non- E&M 9 21,428.00 Scheme (IPDS), National Electricity Fund (NEF), Liquidity
crore.
Total 408 1,22,050.50 Infusion Scheme (LIS), Late Payment Surcharge (LPS) etc., to
- Communication 2 2,810.57 8. PRESENT T&D SCENARIO AND REFORMS name a few.
7.4 Infrastructure & Logistics - Highways 1 17,500.00
As the country’s installed generation capacity is at a high While this has resulted in major infrastructure creation and
After completing the mammoth task of electrification of the - Drinking Water 1 10,331.9 of more than 415.50 GW (as on March 31, 2023), with huge bridging of supply side gaps in the distribution sector, the
whole country under the flagship Government programme, - Ports Shipping, Waterways 1 4,098.45 capacities planned in the renewable energy space, the management and governance related issues that manifest
now your Company has been assigned with the mandate by - Airport 1 1,171.17 Transmission & Distribution (T&D) sector is poised to witness in operational & financial performance of discoms, still
Government of India to foray into financing the Infrastructure growth. There is also a need to strengthen the technically persist. Aggregate Technical & Commercial (AT&C) losses
Private Sector 1 3,000.00
& Logistics sector in addition to the Power sector, subsequent old and aging distribution infrastructure. Need of the hour and the Average Cost of Supply-Average Revenue Realized
to it becoming a Maharatna Company. With the strength of - Steel 1 3,000.00 is to install a state-of-the-art robust and reliable evacuation (ACS-ARR) gap, continue to be high. The discoms need
financial power that comes with ‘Maharatna’ status, your Total 29 85,734.60 and distribution system, capable of handling higher loads. to focus on improving their operational efficiencies and
36 37
financial sustainability, to meet the desired consumer service Part B – Training & Capacity Building and other enabling & funds under RDSS in terms of extant guidelines and terms & 8.4 Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
standards. For this, large scale reforms are required, including supporting activities: conditions of sanction.
schemes to reduce losses and enhance discom efficiencies. Government of India’s flagship programme, DDUGJY, for
Including upgradation of human skills, process improvements, 8.2.5 Promoting use of advanced technologies in power which REC is the nodal agency, has been completed in
It is with this aim and the Government of India’s commitment nodal agency fee, enabling components of Ministry of Power distribution sector its sunset year FY 2021-22 i.e., on March 31, 2022. All un-
to provide 24x7 uninterrupted, quality, reliable and affordable (communication plan, publicity, consumer survey, consumer electrified villages/habitations, irrespective of population
RDSS lays special emphasis on leveraging advanced
power supply, that the reforms-based and results-linked awareness and other associated measures such as third-party criteria, have been covered for electrification in accordance
technologies to analyse data generated through Information
Revamped Distribution Sector Scheme (RDSS) has been evaluation etc.), augmentation of Smart Grid Knowledge with the Guidelines of the scheme. All erstwhile ongoing rural
Technology (IT) / Operational Technology (OT) devices,
launched, for supporting discoms to undertake reforms and Centre (including AI, training and capacity building for electrification (RE) schemes had been subsumed in DDUGJY.
including system meters and prepaid smart meters, to
improve performance in a time-bound manner. personnel involved in execution of the scheme at field level), materialize the envisaged goal i.e., introducing advanced In a landmark achievement, all remaining un-electrified
Your Company encourages discoms to expedite awards and recognitions etc. technologies like Artificial Intelligence (AI) / Machine Learning census inhabited villages in the country became electrified as
improvements and to adopt best practices, including Ongoing approved projects: Projects sanctioned under (ML) in power distribution by leveraging partnerships and on April 28, 2018.
modernization and automation of systems and smart grid, PMDP 2015 in the erstwhile State of Jammu & Kashmir have consultations.
IT-enabled systems for metering and consumer services, and DDUGJY facilitated towards achievement of ‘24x7 Power For
been subsumed in RDSS. A competition named “POWERTHON” was launched by All’ in the rural areas of India, through the following project
other technological interventions of the distribution sector. Hon’ble Union Minister of Power and New & Renewable
Your Company is the nodal agency for Government of India’s 8.2.4 Funding Pattern components:
Energy, with the key objective to create a forum for the
flagship schemes, DDUGJY and SAUBHAGYA, which have The release of funds under the scheme will be linked to participation of Technology Solution Providers (TSPs), start- a. Separation of agriculture and non-agriculture feeders
been successfully completed in previous year and now, your achievement of results and reforms laid down under an ups, educational institutions, research institutes, equipment facilitating continuous quality power supply to non-
Company is associated, inter-alia, with RDSS. evaluation framework, as under: manufacturers, state power utilities and other state and agricultural consumers and adequate power supply to
8.2 Revamped Distribution Sector Scheme (RDSS) central power sector entities for showcasing their technology agricultural consumers;
Part A – Metering & Distribution Infrastructure Works
driven solutions based on advanced emerging technologies b. Strengthening and augmentation of sub-transmission
8.2.1 Overview like AI/ML, Blockchain etc. to solve the complex problems
Component-I : Prepaid Smart metering solutions, including and distribution infrastructure;
Your Company acts as one of the Nodal Agency for the at consumer, DT and feeder level including integration of being faced in the power Distribution sector.
reforms-based and results-linked Revamped Distribution c. Micro-grid and off-grid distribution network;
existing infrastructure, will be funded through GBS as under: REC has partnered with Society for Innovation &
Sector Scheme (RDSS) notified by the Government of India d. Metering of distribution transformers / feeders / consumers; and
• for discoms in “Other than notified Special Category Entrepreneurship, Indian Institute of Technology, Bombay
vide OM dated July 20, 2021, with an outlay of ₹3,03,758 (SINE IIT-Bombay) as the nodal incubator for implementation e. Rural Electrification component (including the erstwhile
crore and estimated Gross Budgetary Support (GBS) from States”, a fixed amount of ₹900 per consumer meter or
15% of the cost per consumer meter worked out for the of the POWERTHON framework to identify key intervention RE projects).
the Central Government of ₹97,631 crore over a period of 5 areas, select TSPs through a competitive screening process,
years i.e., FY 2021-22 to FY 2025-26. REC, as nodal agency, has whole project, whichever is lower; Under the scheme, 60% of the project cost (85% for special
establishing governance mechanisms for the pilot projects
been assigned with 19 States/Union Territories for overseeing • for discoms in “notified Special Category States”, a fixed and its scale-up. category States) was provided as grant by the Government
and monitoring of implementation of the scheme, namely amount of ₹1,350 per consumer meter or 22.5% of the of India; and additional grant upto 15% (5% for special
Assam, Meghalaya, Arunachal Pradesh, Chhattisgarh, Jammu Under this partnership, a total of 275 applications were category States) was provided on achievement of prescribed
cost per consumer meter worked out for the whole
& Kashmir, Ladakh, Goa, Tamil Nadu, Karnataka, Bihar, received from TSPs offering solutions across identified 9 key milestones. The scheme had an approved outlay of ₹43,033
project, whichever is lower.
Rajasthan, Uttar Pradesh, West Bengal, Andaman & Nicobar problem/challenge areas identified by Discoms, like Demand/ crore, including budgetary support of ₹33,453 crore from
Islands, Sikkim, Mizoram, Manipur, Nagaland and Tripura. To incentivize deployment of prepaid Smart meters within Load Forecasting, AT&C Loss Reduction, Power Purchase
the Government of India. An amount of ₹48,185.67 crore
the targeted timeline of December 2023, the Scheme provide Cost Optimization, Energy Theft Detection, Prediction of
All discoms and power departments of State/Union Territories, (including grant of ₹30,668.11 crore) has been sanctioned
incentives as under: DT Failure Rate, Asset Inspection, Vegetation Management,
excluding private sector discoms, are eligible for financial Consumer Experience Enhancement and RE Integration. by the Ministry of Power for DDUGJY in 33 States and Union
assistance under this scheme. The scheme is optional to • for discoms in “Other than notified Special Category After a due diligence process, 17 nos. TSPs were selected for Territories against which ₹33,801.79 crore (including grant
discoms and is to be implemented in urban and rural areas States”, a fixed amount of ₹450 per consumer meter or implementation of pilot projects at bed areas of selected of ₹25,748.90 crore) has been released under the scheme till
of all States/Union Territories (except private discoms). The 7.5% of the cost per consumer meter worked out for the DISCOM test. The pilot projects are under implementation. March 31, 2023. On closures, the total executed cost under
scheme allows States to adopt customized reform measures whole project, whichever is lower; the scheme has arrived at ₹45,942.74 crore.
and plan infrastructure works to meet specific needs of the 8.3 National Electricity Fund (NEF)
• for discoms in “notified Special Category States”, a fixed 8.4.1 Erstwhile RE projects, subsumed under DDUGJY
State with the approval of the Government of India. REC is the nodal agency for operationalization of National
amount of ₹675 per consumer meter or 11.25% of the
Electricity Fund (NEF), an interest subsidy scheme having Ministry of Power, Government of India has sanctioned an
8.2.2 Objectives cost per consumer meter, worked out for the whole
provision of ₹8,466 crore (against interest subsidy and amount of ₹66,367.13 crore (including DDG projects) (grant
The objectives of the scheme are to improve the quality, project, whichever is lower. other incidental expenses), to be provided over 14 years involved: ₹59,730.42 crore) under erstwhile RE projects (i.e.,
reliability and affordability of power supply to consumers Component-II: Distribution Infrastructure works, including against interest paid on loan disbursements amounting to Xth Plan, XIth Plan & XIIth Plan) subsumed under DDUGJY in 29
through a financially sustainable and operationally efficient SCADA, DMS, AB cables, feeder segregation etc. maximum ₹23,973 crore for distribution schemes sanctioned during States including Union Territories, against which ₹59,651.89
distribution sector, reduce the AT&C losses to Pan-India levels financial assistance to be funded through GBS will be as under: two financial years viz. 2012-13 and 2013-14. The Ministry
crore (including grant of ₹54,496.44 crore) has been released
of 12-15% by 2024-25; and reduce the ACS-ARR gap to zero of Power, Government of India provides interest subsidy
• for discoms in “Other than Special Category States”, up to till March 31, 2023. On closures, the total executed cost under
by 2024-25. on interest paid for loans availed by State power utilities &
60% of the approved project cost; and distribution companies, both in public and private sector, to erstwhile RE projects has arrived at ₹62,066.19 crore.
The state-wise targets for reduction of AT&C losses/ACS-ARR improve the infrastructure in the distribution sector. In this
revenue gap each year will depend on their current levels of • for discoms in “Special Category States”, up to 90% of the 8.5 SAUBHAGYA - Pradhan Mantri Sahaj Bijli Har Ghar Yojana
reform-linked scheme, an interest subsidy in the range of 3%
AT&C losses and ACS-ARR gap. approved project cost.
to 7% is payable to discoms, on achievement of reform-based Government of India’s flagship programme, SAUBHAGYA
8.2.3 Components Part B – Training & Capacity Building and other Enabling & parameters outlined in NEF Guidelines. (Pradhan Mantri Sahaj Bijli Har Ghar Yojana), for which REC is the
Supporting Activities: The utilities from the States of Andhra Pradesh, Chhattisgarh, nodal agency, has been completed in previous year. The scheme
Part A – Metering & Distribution Infrastructure Works:
• 100% of the approved project cost will be eligible for Gujarat, Haryana, Himachal Pradesh, Karnataka, Maharashtra, outlay was ₹16,320 crore, including gross budgetary support of
Component-I : Smart Metering Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, Telangana, ₹12,320 crore. The SAUBHAGYA scheme aimed at providing:
funding through GBS.
Component-II : Distribution Infrastructure Works Uttarakhand and West Bengal have already benefited from
Ongoing approved projects: Projects sanctioned under a. Last mile connectivity and electricity connection to all un-
this scheme, with interest subsidy of ₹2,030.33 crore released
Component-III : Project Management PMDP 2015 subsumed in RDSS will be eligible to receive grant electrified households in rural areas;
till March 31, 2023.
38 39
b. Last mile connectivity and electricity connection to all (ii) Connections and other services, (iii) Metering, Billing system by installing Modem/DCUs for rural, agricultural and aggregate GBS funds amounting to ₹1,828.48 crore have
remaining economically poor un-electrified households and Collection, and (iv) Fault Rectification & Grievance mixed (agriculture rural) feeders across the country. Data is been released to States [comprising of RDSS: ₹622.54 crore;
in urban areas. Non-poor urban households are excluded Redressal. The 2nd Edition of the Consumer Service Rating of acquired on various essential parameters of all the outgoing DDUGJY (including additional infrastructure & RE): ₹916.46
from this scheme; DISCOMs report (FY 2021-22) can be accessed at REC website 11kV rural feeders and such 66/33 kV incoming feeders, from crore; DDUGJY-DDG: ₹5.05 crore; PMDP-2015: ₹284.43
https://recindia.nic.in/consumer-service-rating-of-discoms. where 11kV rural feeders are emanating and information is crore and SAUBHAGYA: Nil].
c. Solar Photo-Voltaic (SPV) based standalone system for un- made available online for all stakeholders. Analysis of such
electrified households located in remote and inaccessible 8.8 Regulatory Parameters Report b. Physical progress under RDSS: 8,99,291 number of
data provides useful MIS to various stakeholders such as
villages/habitations, where grid extension is not feasible During the year 2022-23, REC has published periodical reports discoms and Central Electricity Authority (CEA). Smart meters installed under RDSS:
or cost effective. capturing key regulatory parameters across Generation, 9.2 Cumulative performance upto March 31, 2023
8.12 National Feeder Monitoring System (NFMS)
Transmission & Distribution segments in Power sector for
Under the scheme, ₹14,082.43 crore (including grant of a. Sanction and release: Under RDSS, an amount of
the benefit of various stakeholders and assisting policy Your Company’s wholly owned subsidiary, RECPDCL is Project
₹9,078.84 crore) was sanctioned by the Ministry of Power to formulation. The published reports can be accessed at REC ₹1,37,522.27 crore was sanctioned to the States allocated
Implementing Agency for National Feeder Monitoring
26 States and Union Territories, against which ₹8,815.12 crore website https://recindia.nic.in/RegulatoryParameters. System (NFMS), which is a cloud based central IT platform to REC (nodal agency) towards smart metering and
(including Government of India’s grant of ₹6,305.07 crore) has for monitoring the reliability and quality of power of all loss reduction. Under DDUGJY including RE Projects
been released. It is noteworthy that 2.86 crore households 8.9 Report on “The study of Organisational Structure & and SAUBHAGYA schemes, an aggregate amount of
33/22/11 kV outgoing distribution feeders across the
have been electrified since the launch of SAUBHAGYA under Recruitment process of DISCOMs” ₹1,43,285.38 crore was sanctioned and on completion
country. The legacy feeder monitoring systems of Discom(s)
various schemes viz. SAUBHAGYA, DDUGJY, RE, PMDP and Ministry of Power (MoP) constituted a Task Force on August shall be integrated with NFMS. The platform will provide of the projects, aggregate executed cost arrived at
other State RE schemes. On closures, the total executed cost 11, 2021 chaired by Additional Secretary (Power), to study critical data on losses, essential power parameters, supply ₹1,26,544.32 crore as on March 31, 2022. Under PMDP
of the projects has arrived at ₹9,246.22 crore. the existing different organizational structures with a major quality & reliability and make the information available to (Rural), an amount of ₹1,687.98 crore was sanctioned.
emphasis on the role of efficient organisation structure all stakeholders including Discoms on near Real-Time basis. Since launch of the schemes, ₹95,567.12 crore of
8.5.1 Additional infrastructure under DDUGJY for
and proper manpower planning in DISCOMs for effective Further, RECPDCL is also working to develop a mobile app Government of India grant funds have been disbursed
enabling electrification of SAUBHAGYA households
implementation of various reform measures introduced for the Discom officials to view the reports and insights for by REC as nodal agency to the implementing agencies
The Ministry of Power, Government of India had sanctioned from time to time. Under the guidance of MoP, REC had monitoring the live progress and performance and will also up to March 31, 2023 [comprising of RDSS: ₹622.54 crore;
additional fund of ₹14,178.89 crore (grant involved: undertaken a detailed study on the existing organizational help power sector stakeholders to have an integrated insight DDUGJY (including additional infrastructure): ₹86,851.50
₹9,399 crore) for creation of additional infrastructure for structure, processes and recruitment cycle & key challenges into a Discom’s operation at individual feeder level, to take crore; DDG: ₹850.92 crore; PMDP-2015: ₹937.09 crore and
SAUBHAGYA scheme under DDUGJY, against which ₹7,809.15 faced by various DISCOMs with a major focus on Governance focused actions for further improvising the distribution sector. SAUBHAGYA: ₹6,305.07 crore].
crore (including grant of ₹7,555.17 crore) has been released and human resource management aspects and developed
a compendium of best practices and suggested standard A pilot demonstration of NFMS portal has been successfully b. Physical progress:
on closures, the total executed cost under Additional Infra
projects has been arrived at ₹11,334.01 crore. guidance frameworks to address legacy structural and carried out and the operational Go-Live of the System is
targeted in the financial year 2023-24. i) DDUGJY (incl. RE and Additional Infra)
manpower challenges. The report on "The study of
8.6 Prime Minister Development Package (PMDP-2015) Organisational Structure & Recruitment process of DISCOMs" 8.13 Tarang The following works have been completed cumulatively
The Prime Minister Development Package (PMDP-2015) for was circulated by MoP on March 20, 2023 to all states for till completion of DDUGJY (incl. RE and Additional Infra)
implementation of the recommendations of the report in Tarang (Transmission App for Real-Time Monitoring and scheme since inception:
erstwhile State of Jammu & Kashmir, now J&K and Ladakh Growth) is a transmission sector initiative, being run under
Union Territories, was announced by the Hon’ble Prime the state DISCOMs to strengthen them organizationally, to • Commissioning of sub-stations incl. augmentation:
proactively handle the changing sector dynamics. the guidance of the Ministry of Power, Government of India,
Minister on November 27, 2015, with approved project cost 7,231 nos.
through your Company’s wholly owned subsidiary RECPDCL.
of ₹2,570.14 crore (90% grant from Government of India 8.10 Urja Mitra • Commissioning of Distribution transformers
Tarang App is a real time repository of transmission system
i.e., ₹2,301.62 crore) for distribution strengthening works in (including augmentation): 16,57,999 nos.
Urja Mitra is a distribution sector initiative and a first of its across the country. It provides an informative medium
rural and urban areas. The major works covered under the
kind application being implemented by your Company’s regarding Pan-India progress of the transmission system, • 11 kV lines (including Feeder Segregation): 8,02,484 cKm
scheme are system strengthening, connecting unconnected
wholly owned subsidiary, viz. REC Power Development and which can be drilled down for analysis to month-wise, agency- • LT lines: 13,66,881 cKm
households, replacing of barbed wire and worn-out poles,
Consultancy Limited (“RECPDCL”), under the guidance of wise, state-wise information etc. Tarang monitors the progress
underground cables at tourist places, consumer metering, • 33 kV/66 kV lines: 41,138 cKm
Ministry of Power, Government of India. of both inter-state and intra-state transmission projects being
construction of 33/11 kV sub-stations at industrial areas and
implemented through Tariff Based Competitive Bidding • Installation of consumer metering: 1,87,97,312 nos.
electrical infrastructure at religious shrines. Urja Mitra provides a Central Outage Management and (TBCB) process, as well as regulated tariff mechanism. • Metering of DTRs and Feeders: 2,54,307 nos.
Out of the above, project cost of ₹1,029.70 crore (Government notification platform for State power distribution utilities,
of India’s grant: ₹926.73 crore and PMA grant of ₹5.15 crore) to disseminate power outage information to urban and 9. PERFORMANCE & ACHIEVEMENTS UNDER GOVERNMENT ii) RDSS
has been sanctioned for distribution strengthening works rural power consumers across India through SMS, email or PROGRAMMES
Since inception of RDSS, cumulatively 15,13,349 number of
in rural areas. Further, Ministry of Power has sanctioned push notifications. The consumers get power outage update The performance and achievements under various Smart meters installed under RDSS upto March 31, 2023.
additional project cost of ₹527.55 crore, PMA charges of through integrated mobile application for Android and iOS Government programmes during financial year 2022-23 and
₹2.65 crore and PIA charges of ₹28.44 crore for distribution platforms. Urja Mitra also provides a platform to view real cumulatively till March 31, 2023, are given below: iii) PMDP (Rural)
strengthening projects in rural areas under PMDP-2015. time power outages in any part of the country and lodge
9.1 Performance and achievement under RDSS, DDUGJY and The following works have been completed cumulatively
The funds are being channelized through REC. Under the complaints on power outages. Data of around 23.24 crore
PMDP-2015 during the FY 2022-23: upto March 31, 2023 under PMDP (Rural) since inception:
scheme, an amount of ₹750.80 crore has been released till consumers from 53 discoms have been uploaded on the Urja
March 31, 2023. Projects under PMDP-2015 in the erstwhile Mitra App and so far, almost 705 crore SMS have been sent to • Commissioning of sub-stations incl. augmentation:
a. Sanction and release: During the financial year 2022-23,
State of Jammu & Kashmir have been subsumed in RDSS as the consumers. 126 nos.
an amount of ₹47,242.38 crore was sanctioned under RDSS
per extant guidelines and terms & conditions, and are eligible against smart metering and loss reduction works including • Commissioning of Distribution transformers (including
8.11 11 kV Rural Feeder Monitoring Scheme
to receive grant funds under RDSS. PMA in the States assigned to REC, nodal agency. augmentation): 2946 nos.
11 kV Rural Feeder Monitoring Scheme is being implemented • 11 kV lines (including Feeder Segregation): 3181 cKm
8.7 DISCOM Consumer Service Rating The subsidy of Government of India is channelized
by your Company’s wholly owned subsidiary, RECPDCL. The
through REC and the matching contribution is infused • LT lines: 9240 cKm
An exercise was undertaken by REC for grading of DISCOMs objective of the scheme is to monitor quality and reliability
across the country (public/private) in terms of consumer parameters of rural power supply at feeder level, to ensure by the respective State Government or implementing • 33 kV/66 kV lines: 213 cKm
centric service and operational parameters. Scoring is spread achievement of “24x7 Power for All”. The scheme targets to agencies, through loan from any financial institution or c. SAUBHAGYA: 2.86 crore households have been
across four broad parameters i.e., (i) Operational reliability, develop a self-sustained, independent, web based automated from their own sources. During the financial year 2022-23, electrified since launch of SAUBHAGYA scheme under
40 41
various schemes i.e., SAUBHAGYA, DDUGJY, RE, PMDP and (ii) Operational Risk: Operational risk arises from inadequate REC incorporates environmental impact considerations have facilitated further automation of business operation
other State RE schemes. or failed internal processes, people and systems or in its operational, financial and risk management linked of the Company. The ERP system is continuously improved
external events. decision making. In this regard, company has formulated as per requirements. REC has also implemented NIC e-office
10. STANDARDIZATION, QUALITY CONTROL & MONITORING
& implemented an ESG policy covering the focus areas. solution, with automated workflow and electronic document
The Company has implemented a comprehensive Risk
Your Company has regularly handholding support and management features. The NIC e-office has brought major
Register, through which all operational risks are measured 11.1 Risk Management Committee
technical expertise in the distribution system, to State Power transformation in the way of working of the Company by
and categorised as high, moderate or low. Further,
utilities for the implementation of Government schemes. The The Company is having a Risk Management Committee improving efficiency and transparency, besides reducing the
the operational risks of the Company are studied in all
technical specifications, Guaranteed Technical Particulars (RMC) of its Directors in place, for monitoring the integrated use of paper.
functional areas such as Business, Compliance, Finance, risks of the Company. The Committee comprises of Chairman
(GTP), layout drawing, datasheet, and construction standards
issued by the Company are being used by the state power Human Resource, Cyber Security, Legal, Operational and & Managing Director (CMD), one Independent Director, Your Company wide MPLS VPN network infrastructure facility
utilities along with their state practices. Strategic. Director (Finance) and Director (Projects). Executive Directors has been revamped with latest network and security devices,
of key divisions of the organization, are standing invitees to with high availability to meet the demanding requirements
Further, to ensure compliance of regulatory/supervisory
The Company has been adopting new emerging of operations. The secured VPN network has facilitated users
directions in true letter and spirit in a time-bound and the meetings of RMC.
technologies in the distribution sector such as prepaid smart to connect to REC network from remote locations to access
meters, consumer and system metering, Advanced Metering sustainable manner, the Company has appointed Chief The main function of the RMC is to monitor various risks and business applications viz. ERP and NIC e-office, thus ensuring
Infrastructure (AMI), (head-end system, metering data Compliance Officer (CCO). also to suggest action for mitigation of risks arising in the seamless operations without any disruption.
management, billing software/system, and communication (iii) Liquidity Risk: Liquidity risk primarily arises due to the operation and other related matters of the Company. Further,
technology), Supervisory Control and Data Acquisition maturity mismatch associated with assets and liabilities as required under RBI norms, the Company has appointed a The Primary Data Centre and Disaster Recovery Center of
(SCADA), Real-Time Data Acquisition System (RT-DAS), of the Company. It is the risk of potential inability to meet Chief Risk Officer (CRO) who acts as the convener to the RMC. REC are ISO/IEC 27001:2013 certified and also comply with
Distribution Management System (DMS), Information the National Cyber Security Policy of the Government of
liabilities as they become due. Liquidity risk involves 11.2 Asset Liability Management Committee
Technology/Operational Technology (IT/OT) related works India. REC has implemented IT Security directives of Master
the inability of the Company to fund increase in assets,
including ERP software. State Power utilities are taking To manage the market risk, the Company has constituted Direction of IT Framework as per RBI Guidelines. Further, the
manage unplanned changes in funding sources and to
leverage of these new technologies for improving their an Asset Liability Management Committee (ALCO) under Company provides training and awareness to its employees
meet obligations when required. The Company faces
operational efficiency and financial sustainability. the chairmanship of CMD, which comprises of Director on cyber security and information security and also has cyber
liquidity risks, which could require it to raise funds or
(Finance), Director (Projects), Executive Directors and Chief security solutions along with mechanism for real-time log
In line with the Quality Control Mechanism Guidelines of liquidate assets on unfavourable terms.
General Managers from Finance and Operating Divisions as and security event analysis to identify anomalous activities in
Government Programmes, REC Quality Monitors (RQMs) have In order to mitigate the liquidity risk, there is a mix the REC environment.
its members. The ALCO monitors risks related to interest rates,
been appointed for carrying out material and field works of strategies including forward looking resource liquidity and currency rates.
inspections for ensuring the quality of materials supplied at Company has deployed systems as part of IT initiative to
mobilization based on project disbursements and
the site and field works during the implementation of such 12. RISK BASED INTERNAL AUDIT achieve better e-governance Single-sign-On solution,
maturing obligations.
schemes. Centralized scanning solution, digitization of physical records
(iv) Market Risk: Market risk of the Company is defined as the Your Company has a Board-approved Risk Based Internal
etc. have been implemented. Further, Company in its day to
During the financial year 2022-23, RQMs have undertaken risk to Company’s earnings and capital due to changes in Audit (RBIA) policy/manual since April, 2022, which links
day activities promotes the digital and go green initiatives.
field inspection of 1,478 nos. of villages, and 266 nos. of the organization’s overall risk management framework
the market dynamics, such as interest rate or prices of
material testing at M/s ERDA and M/s NTH laboratories for and provides an assurance to the Board of Directors, Audit REC’s website is user friendly, dynamic, interactive and easily
securities, foreign exchange fluctuations.
ensuring the quality of materials supplied in village electricity Committee and senior management, on the quality and accessible, STQC certified and complying with Guidelines for
infrastructures installed under the Government scheme. The Company has implemented various risk limits effectiveness of the organization’s internal controls, risk Indian Government website (GIGW).
Impact Evaluation of already implemented schemes i.e., to mitigate the market risk. The Company has also management and governance related systems and processes.
SAUBHAGYA & DDUGJY schemes are also being undertaken constituted an Asset Liability Management Committee This is in line with the RBI mandate of the RBIA framework for 15. REC INSTITUTE OF POWER MANAGEMENT AND TRAINING
by third-party agencies viz. M/s RTI-UCLA & M/s E&Y (ALCO) to monitor the components of market risk all non-deposit taking NBFCs with asset size of ₹5,000 crore REC Institute of Power Management and Training (RECIPMT)
respectively, in order to measure the direct & indirect impact including interest rate risk, liquidity risk and forex risk. and above. RBIA will help the organization to identify the risks is a premier power sector training institute under the aegis
of the scheme on general livelihood & growth of rural India. and address them based on the risk priority and direction of REC. Established in 1979 at Hyderabad, the institute caters
(v) Interest Rate Risk: Interest rate risk is the potential loss provided by the Board. The activities under RBIA framework
11. RISK MANAGEMENT arising from fluctuations in market interest rates. to the training and development needs of engineers and
include independent risk assessment of the operation/ managers of power sector organizations. During the last four
The Company has a Comprehensive Risk Management Policy, In order to mitigate the interest rate risk, your Company activities, identification of audit universe, development of
decades, RECIPMT has organized 3,114 training programmes
which covers various risks including Credit Risk, Operational periodically reviews its lending rates and the weighted risk matrix, preparation of annual RBIA Plan and execution of
and trained 68,525 engineers/managers from power utilities,
Risk, Liquidity Risk, and Market Risk. The Company has average cost of borrowing based on prevailing market internal audit as per the frequency defined in RBIA policy.
including generation, transmission & distribution companies,
identified its various risks and is constantly taking appropriate rates. 13. PREFERRED CUSTOMER POLICY electricity departments, rural electric cooperatives, electricity
steps to mitigate the same.
(vi) Forex Risk: Foreign currency exchange risk involves regulatory commissions, etc.
Brief description of the key risks and their mitigation measures As a part of business promotion strategy, a Preferred
exchange rate movements among currencies that Customer Policy was formulated in 2008 with the basic 15.1 National Regular Programme (NRP)
is given below:-
may adversely impact the value of foreign currency- purpose of offering enhanced level of services to the
(i) Credit Risk: Credit risk is the inherent risk in the financing denominated assets, liabilities and off-balance sheet Company’s customers and to have a long term mutually Under the NRP training programme, RECIPMT successfully
industry and involves the risk of loss, arising from the arrangements. beneficial relationship with them. The policy lays down the organized 8 training programmes through webinars and
diminution in credit quality of a borrower and the risk eligibility criteria which takes into account various factors 7 programs in classroom mode on different topics such as,
The Company manages foreign currency risk associated
that the borrower will default on contractual repayments such as amount of loan outstanding, duration of loan open access power exchange & trading, smart meters AMI
under a loan or an advance. with exchange rate and interest rate through appropriate
relationship, repayment track record of the borrower etc. & technologies, distribution loss reduction, pilferage of
hedging strategies. electricity issues, challenges & remedies, protection systems
To mitigate the same, the Company follows systematic for determining preferred customers and sponsoring them
institutional and project appraisal process to assess (vii) Environmental, Social & Governance (ESG) Risks: ESG for capacity building domestic / international seminars and in EHV sub-stations and lines, earthing practices & protection
credit risk. These processes include a detailed appraisal risks emanates from environmental, social and governance training programmes organized by various external agencies, in distribution system, concept of commissioning of solar
methodology, identification of risks and suitable factors that have an impact on the operations, financial as well as RECIPMT Hyderabad. power plants, O&M of EHV sub-station & lines including
structuring and credit risk mitigation measures. Further, performance and management of company. Owing to quality assurance, Labour laws & procedure in dealing
14. INFORMATION TECHNOLOGY INITIATIVES
on regular basis REC loan book is categorized as high, the rising climate concerns & impetus of governments Court cases, design, construction & quality control of EHV
moderate or low, depending upon the asset classification in respective economies across the globe, ESG risks have Your Company has revamped its Business ERP, which substation & lines, tariff policy, ARR & regulatory compliance,
based on the ECL methodology. attained great significance. supports GST and Ind-AS, has advanced features which distribution transformers-operation & maintenance for failure
42 43
minimization. A total of 137 participants took part in these Planning (ERP), MS Excel & Power Point, Leadership & performance, Training and Human Resource Development sports & recreation equipment for its employees to promote
programmes. Communication Skills. continued to receive priority during the financial year 2022-23. their well-being. Company has also extended crèche / day
care facility for employees to foster a work-life balance for
15.2 MEA, GoI sponsored international training programmes 15.5 Customized Programmes The Training and Human Resource Policy of the Company
under Indian Technical & Economic Cooperation (ITEC) aims in contributing to the current view and future employees. To facilitate recreation and healthy life, Gymnasium
During the financial year 2022-23, RECIPMT has organised is also available for employees in the premises. Various Yoga
expectations, requirement of resources, forecasting training
RECIPMT is also a partner training institute with Ministry of 13 Customized Classroom mode programme on different programs and Health Camps were organized by the company
needs on emerging opportunities and threats pertaining
External Affairs, Government of India (MEA) for organizing subjects such as Power Transformer-Testing, Commissioning, regularly for the employees for their better well-being.
to the Company. To refine the required business skills and
training programmes for the executives of International Protection; Operation, Maintenance & Protection of 33/11
competencies for better employee performance, all possible 16.4 Sports activities
power sector organizations. Since 2005 until now, RECIPMT KV Substation & 33KV Lines; Distribution Transformer and
has organized 109 such training programmes and trained opportunities and skill development trainings provided
Operation & Maintenance Practices for Failure minimization; Employee engagement in Sporting activities bring people
1,839 executives from 98 countries. to all employees. Training was also provided to promote
O&M of Distribution Transformers; AT&C Loss Reduction & and nations together while inculcating feelings of oneness,
better understanding of professional requirements, as well
During 2022-23, 1 webinar of 3-weeks duration was Regulatory Frame work & CRM for J&K, Leh & Ladakh. Further, harmony, and tolerance. In an ideal scenario, one often
as to sensitize the employees about the socio-economic
organized with participation of 22 executives and 4 the Safety training was also organized at Project Site of SECI, looks for a perfect workplace. A place that provides a
environment in which business of the Company operates.
classroom programmes each of 4 week duration was also New Delhi. A total of 258 participants were trained from these supportive setting and encourages a healthy work-life
Trainings on topics of health, growth of spiritual well-being
organized. The countries participated in these programmes programmes. balance. Incorporating sports as an essential part of the office
and attitudinal change process were also imparted.
were Afghanistan, Algeria, Azerbaijan, Bangladesh, Bhutan, 15.6 Total Training Programmes organized during the financial program can help in the quest of achieving that goal. With
Cameroon, Cote d’Ivoire, Eritrea, Ethiopia, Fiji, Iraq, Maldives, During the financial year 2022-23, 315 employees attended
year 2022-23 this fortitude during the financial year 2022-23, REC hosted
Myanmar, Nepal, Niger, Oman, Peru, Seychelles, South Sudan, various training programs, workshops etc., which enabled the
an Inter-CPSU Badminton Tournament at Thyagaraj Sports
Sri Lanka, Sudan, Tajikistan, Tanzania, Trinidad & Tobago, During the financial year 2022-23, RECIPMT conducted an Company to achieve 1,136 training man-days.
Complex, New Delhi and also sponsored its employees for
Tunisia, Uganda, Zimbabwe. aggregate of 224 training programmes, which were attended
16.3 Employee Welfare various Inter-CPSU sports tournaments such as table tennis,
by 4,854 participants, with achievement of 15,371 training
15.3 REC sponsored programmes cricket, volley ball, chess etc., organized by various power
man-days in total. Your Company’s ultimate goal is to keep employees happy,
sector CPSUs under the aegis of Power Sports Control Board
In order to encourage training activities and bring in healthy and productive. In order to provide improved health
16. HUMAN RESOURCE MANAGEMENT (PSCB). Further, employees were encouraged to participate
awareness among the executives of power utilities, the care facilities to the employees and their dependent family
members, part-time services of doctors were engaged to in various quizzes, paper presentations and simulation
following training programmes were conducted free of cost Under “Mission Recruitment “ launched by the Government of
by RECIPMT during the financial year 2022-23 with all India provide onsite medical facilities. The Company has also funded competitions conducted by reputed institutions.
India with the aim of employment generation and providing
participation: meaningful job opportunities to the youth, the company has
a. REC sponsored training programmes on Electrical Safety recruited 38 officers across domains during financial year
2022-23 . The total manpower strength of the Company as on
Safety being the major concern of power utilities in the
country, REC sponsored 60 batches on “Electrical Safety”, March 31, 2023 stood at 419 employees, which includes 379
under which 1,511 participants from different utilities were executives and 40 non-executives. The company has further
trained during the financial year 2022-23. recruited 111 officers in various disciplines during 2023-24,
so far, to enhance its professional capacity for meeting the
b. REC sponsored webinars on Techno-Commercial
corporation’s ambitious growth and diversification plans for
Improvement of DISCOM
the future.
RECIPMT organized 60 batches of 2-day webinars
on “Techno-Commercial Improvement of DISCOM’s 16.1 Reservation in Employment
Performance”, covering subjects such as AT&C Loss The Directives issued by the Government of India regarding
Reduction techniques, O&M issues-challenges, Electricity reservations for SC/ST/OBC etc. in appointment and
Act amendments, ACR-ARR Aspects, etc. Under the same, promotion to various posts, were complied with. As on March
RECIPMT trained 1,520 participants of power sector 31, 2023, group-wise details of SC/ST/OBC employees against
companies i.e., from gencos, transcos and discoms. the total strength were as under:
c. REC sponsored programme on Best Practices in Power
Utilities Number of Employees
REC has sponsored 60 batches of 3-day Classroom Year Category Group A Group B Group C Total
programme on "Best Practices in Power Utility" and SC 41 3 12 56
trained 1,202 participants of Power Sector including ST 20 0 0 20
gencos, transcos and discoms.
OBC 87 1 3 91
15.4 REC executives (in-house) training programmes General/ 231 8 13 252
During the financial year 2022-23, RECIPMT also organized 5 2022-23 Others
online webinars and 6 classroom sessions for the employees Total 379 12 28 419
employees REC's winner team of Inter-CPSU Badminton Tournament
of REC, which were attended by 134 employees. The topics
covered were Sustainability of Power Sector, Electricity Act Overall 59 0 5 64 16.5 Representation of Women Employees permanent women employees, which represented 15.27% of
amendments & its impacts; techno commercial improvements women the total work force. There is no discrimination of employees
Your company has been endeavouring to provide equal
of DISCOM’s, Goods & Services Tax (GST), Purchase Procedure employees on the basis of gender. The Company has a Women’s Cell
opportunities to our women employees and in this direction
& e-procurement through GeM, Performance Appraisal, to look after welfare and all round development of women
16.2 Training & Human Resource Development your Company was awarded with ‘Best Organization for
Organization Behavioral Skills towards Managing Change in employees. International Women’s Day was celebrated by
Women Empowerment’ at Women Achievers Awards, 2022 by
Power Sector, RDSS Scheme & Smart Metering Technologies As a measure of capacity building including up-gradation REC Women’s Cell. To mark the celebration REC has organized
Exchange4Media. As on March 31, 2023, the Company had 64
& Application, Loan Documentation, Enterprise Resource of employees’ skill sets and to ensure high delivery of
44 45
an “Outbound Training Programme” for its female employees believes in gender equality and provides a safe and conducive provisions of the Companies Act and Rules made thereunder.  Construction of 100 bedded ‘REC Vishram Sadan’ (G+3) at
in Goa wherein they participated in various team-building workspace for all its women employees. Against the same, the Company has spent ₹210.35 crore District Hospital, Ujjain for attendants of patients belongs
activities, fun games, and interactive sessions. Company also during the year (including carry forward of excess spent of to economic weaker sections.
₹0.40 crore from the previous year). The total expenditure
included contribution of ₹50 crore to the PM CARES Fund and  Construction of two multipurpose community halls in
various other projects in different thematic areas, including: two villages of Krishna District, Andhra Pradesh and one
multipurpose community hall at Asufii Punanamei Mao,
 Distribution of 16,000 aids & assistive devices to persons
Senapati District, Manipur.
with special abilities in various states of India.
 Operating mobile school for imparting free education to  Providing 1,000 school benches in 50 schools in Gurgaon,
children of migrant construction labourers in Gurugram, Haryana and 1,000 school benches, 1,250 Bunk beds,
Haryana and Hardoi, Uttar Pradesh. 5,000 rPET (Recycled Polyester) T-Shirts in Government
Childcare Institutions in Rajasthan made from recyclable
 Broad basing of sports and promotion of excellence in
sports across India, emphasizing on athletics badminton plastic waste.
and boxing. The detailed Annual Report on CSR activities for the financial
 Construction of 500 nos. toilets blocks at work place of year 2022-23, including particulars of impact assessment(s)
Border Security Force (BSF) troops in Gurdaspur, Amritsar, carried out by the Company in respect of various CSR projects,
Firozpur and Abhohar Districts in Punjab. forms part of this Annual Report.
Outbound Training Programme for female employees

16.6 Industrial Relations projects, so as to maximize outreach through a wide
spectrum of beneficiaries and empower economically and
Employer and Employees relations form foundation of all
socially backward communities as a guiding principle,
organization and in your Company the amiable relation
while giving priority to development issues of national
prevail for years. The industrial relations scenario in the
concern. CSR initiatives have been undertaken in the fields
Company continued to be cordial and harmonious in the of sanitation and hygiene, promotion of healthcare facilities,
financial year 2022-23. There was no loss of man-days on skill development, women empowerment, environmental
account of industrial unrest. Regular interactions were held sustainability and rural infrastructural development, in order
with REC Employees Union and REC Officers Association on to promote and facilitate inclusive social development. Providing kitchen garden training to school going students in Meghalaya & Nagaland under REC CSR Project
issues of employee welfare. This has helped in building an
atmosphere of trust and cooperation, resulting in a motivated The Company’s Corporate Social Responsibility Policy is
aligned with the provisions of Companies Act, 2013 and 18. VIGILANCE ACTIVITIES  Regular review of audit reports i.e., Internal, Statutory and
workforce and continued improvement in performance. C&AG Audit Reports.
Rules made thereunder, as amended; and is available at Your Company constantly endeavors to optimize probity and
16.7 Grievance Redressal https://recindia.nic.in/csr-sustainability-policy. integrity among employees and to promote transparency,  Review of projects, tenders and contracts awarded.
In accordance with the guidelines issued by the Government fairness and accountability in all operational areas. REC’s Wherever deviations were observed, the matter was
In terms of guidelines issued by DPE for the year 2022-23,
of India, the Company has constituted a Grievance Redressal Vigilance division mainly aims at ‘Preventive Vigilance’ by taken up with the concerned divisions, which led to
CPSEs were required to spend 60% of their CSR budget on
Committee to ensure the clear and transparent framework for reviewing the policies, rotation and transfers of employees strengthening of appraisal system.
the theme of “Health & Nutrition”, preferably in aspirational
redressal the grievances of its employees. districts. The Company stepped-up its efforts to support holding sensitive posts, review of audit reports, review of  Field inspections of regional offices, REC financed projects
social welfare activities in health and related thematic areas, projects, tenders and contracts awarded, inspections of and scrutiny of APRs of executives.
Further, your Company has a Public Grievance Redressal regional offices, review of Annual Property Returns (APRs), etc.
in different aspirational districts spread across India. The  Thrust on use of IT systems and applications for loans,
system for dealing with the grievances of the public at large.
Company’s CSR projects aimed at improving health services In this regard, the following major activities have been carried schemes, tenders, third party bills etc.
The Company has appointed a senior official in this regard as
in Gajapati (Odisha), Mamit (Mizoram), Kiphire (Nagaland), out:  It is ensured that major policies and information of the
the Chairman, Public Grievance Committee, to ensure prompt
Muzaffarpur (Bihar), Udham Singh Nagar (Uttarakhand),
redressal of grievances within the stipulated time frame.  In compliance with the instructions of CVC/MoP, the corporation are available on REC’s website.
Chandel (Manipur) and West Sikkim (Sikkim) districts.
matter of rotational transfers from the identified sensitive
17. CORPORATE SOCIAL RESPONSIBILITY 18.1 Complaints during the FY 2022-23:
During the financial year 2022-23, the Board approved CSR posts is constantly monitored.
Corporate Social Responsibility (CSR) initiatives of the budget of ₹202.65 crore, i.e., 2% of average of net profits  Sending prescribed periodical statistical returns to CVC During the financial year 2022-23, 10 complaints have been
Company are aimed at supporting socially beneficial of the last three financial years, in line with the applicable and MoP on time. received (2 complaints through CVC) and all 10 complaints
46 47
have been disposed of and no complaint was pending for Ministry of Home Affairs regarding Department of Official and intra-state transmission projects assigned by the Ministry of incorporates a project-specific Special Purpose Vehicle (SPV) as
investigation as on March 31, 2023. Language, on March 3, 2023 at Raipur awarded First prize to Power and State Governments respectively from time to time. its wholly-owned subsidiary, which also becomes the subsidiary
REC Mumbai office for Official Language Implementation. of REC. After selection of the successful bidder in accordance with
18.2 Observance of Vigilance Awareness Week In order to initiate development of each allocated independent
TBCB Guidelines, such subsidiaries are transferred by RECPDCL
Additionally, REC was also felicitated with Rajbhasha Shikhar inter-state / intra-state transmission project, RECPDCL
REC observed Vigilance Awareness Week 2022 from October to the successful bidder, along with all assets and liabilities.
Samman on October 19, 2022 by Hon’ble Governor of Assam
31, 2022 to November 6, 2022, on the theme “Corruption
Prof. Jagdish Mukhi in Akhil Bhartiya Rajbhasha Sammelan
free India for a developed Nation.” During the week, various
organized by Antarrashtriya Hindi Parishad at Guwahati.
interesting activities and competitions were organized to
spread awareness among the employees. The competitions REC has been publishing a Hindi journal Urjayan containing
included Paragraph Writing, Quiz, Poster/Collage Making and interesting and useful articles as well as literary writings of
Poem Writing. its employees. To motivate the employees, the Company has
adopted a policy to award prizes and incentives for write-ups,
All employees of your Company were administered Integrity
articles, poems, etc.
Pledge on October 31, 2022. Banners and Standees were also
displayed at different locations at REC’s Offices throughout 20. PARTICULARS REGARDING CONSERVATION OF ENERGY,
India. The message of fighting corruption and focusing for a TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
developed nation was widely extended. EARNINGS & OUTGO.
An overwhelming participation was received from the 20.1 Conservation of Energy
employees in all the activities. CMD and CVO of your Company Your Company does not own any manufacturing facility,
call forth the employees to assimilate the learnings of the there are no significant particulars relating to conservation of
week in their personality and make our country a Corruption
energy and technology absorption.
free and Developed Nation.
The registered office of the Company is located in SCOPE
19. IMPLEMENTATION OF OFFICIAL LANGUAGE
Complex, Lodhi Road, New Delhi, where all civil, electrical
To promote the use of Hindi in official work, continuous efforts installation and maintenance is carried out by SCOPE
are made by the Company in terms of the Annual Programme (Standing Conference of Public Enterprises).
issued by the Department of Official Language, Ministry
REC Corporate Office situated in Gurugram is designed and
of Home Affairs, Government of India. ‘Hindi Pakhwada’
constructed by using energy efficient facade and radiant
was organized at Corporate Office from September 14-28,
cooling slabs to lower about 30% HVAC load requirement in
2022, wherein various competitions like Rajbhasha quiz,
the building in order to conserve energy. Further, a 979kWp
Hindi slogan writing, Hindi translation, Hindi essay writing,
solar plant has been installed at top of the building (supported
Hindi debate competition and other general knowledge
by solar pergola structure) to cater to load requirement of
competitions were organized. The participation of employees
REC office by using clean and renewable source of energy.
in such events and competitions was encouraging. Prizes
Highly efficient solar panels (efficiency = 21.2%) have been
were awarded to the winners, to motivate the employees
installed and the solar plant is in operation since July, 2021.
to increase the use of Hindi in their day-to-day work. ‘Hindi
The solar plant is functional and connected to grid and has
Pakhwada’ was also organized in various offices of the 220kV Single Circuit Transmission Line from Drass to Padum on Double Circuit Tower at Kargil, Ladakh being implemented by RECPDCL
generated 13.19 lakh units of electricity during the financial
Company including RECIPMT, to provide hands-on exposure
year 2022-23, which has catered to around 50% of the total During the financial year 2022-23, RECPDCL transferred 13 As on March 31, 2023, RECPDCL had the following project-
to participants in discharge of their official work in Hindi.
load requirement of Corporate Office. project specific SPVs to the successful bidders: specific SPVs for various inter-state / intra-state transmission
During the year, use of Hindi was also promoted through
various social media platforms by the Company. 20.2 Foreign Exchange Earnings & Outgo projects:-
Sl. Name of the SPV Date of
During the financial year 2022-23, the Committee of During the financial year 2022-23, the Company had no (1) Chandil Transmission Limited
no. transfer of SPV
Parliament on Official Language successfully conducted foreign exchange earnings. Further, foreign exchange outflow (2) Dumka Transmission Limited
1 Rajgarh Transmission Limited 30-May-2022
inspections at various regional offices of the Company viz., aggregating to ₹16,531.22 crore was made during the year, (3) Mandar Transmission Limited
Panchkula, RECIPMT, Trivandrum, Bhopal, Raipur, Ranchi and on account of interest, principal repayment, finance charges 2 Neemuch Transmission Limited 24-Aug-2022 (4) Koderma Transmission Limited
Jaipur. These inspection have inculcated a spirit of awareness and other expenses. 3 ER NER Transmission Limited 10-Oct-2022
amongst employees for enhanced adoption of Hindi in their (5) Bidar Transmission Limited
21. SUBSIDIARY COMPANIES 4 Gadag II -A Transmission Limited 18-Nov-2022
routine work. (6) Ramgarh II Transmission Limited
REC’s wholly-owned subsidiary, viz., REC Power Development 5 WRSR Power Transmission 17-Jan-2023 (7) Sikar Khetri Transmission Limited
To mark the celebrations of Azadi ka Amrit Mahotsav an Official
and Consultancy Limited (“RECPDCL”) (formerly Limited
Language Conference-cum-Hindi Workshop was organized on (8) Beawar Transmission Limited
known as REC Power Distribution Company Limited) 6 MP Power Transmission Package-I 21-Jan-2023
May 5, 2022 by Corporate Office on the topic “role of Hindi in (9) Luhri Power Transmission Limited
[CIN U40101DL2007GOI165779], is engaged in the businesses Limited
development of National Consciousness” (“Rashtriya Chetna ke
of project implementation and consultancy services in (10) KPS1 Transmission Limited*
Vikas mein Hindi ki Bhoomika’’). Further, Hindi Workshops were 7 ERWR Power Transmission 21-Mar-2023
power sector viz. implementation of distribution system
also organized in REC offices to give hands-on exposure and to Limited (11) Meerut Shamli Power Transmission Limited
strengthening works, implementation of grid/off-grid solar
guide the employees for use of Hindi. (12) NERES XVI Power Transmission Limited
(PV) projects, installation of smart meters, preparation of 8 KPS2 Transmission Limited 21-Mar-2023
Shri R. K. Singh, Hon’ble Minister of Power and Renewable detailed project reports, third party inspections, pre-dispatch (13) Khavda II - D Transmission Limited#
9 KPS3 Transmission Limited 21-Mar-2023
Energy, in the meeting of Hindi Advisory Committee of material inspections and acting as project management Note: SPVs as referred at Sl. no. 6 to 13 were incorporated during the
Ministry of Power held on May 12, 2022 conferred REC with consultant / project management agency under some 10 Khavda II- B Transmission Limited 21-Mar-2023
FY 2022-23.
the First prize for the year 2018-19 and second prize for the projects of State-funded schemes such as DDUGJY, IPDS etc. 11 Khavda II- C Transmission Limited 21-Mar-2023 *KPS1 Transmission Limited was transferred on April 20, 2023.
year 2020-21 for Official Language Implementation. Further, RECPDCL also acts as “Bid Process Coordinator” for #Striking off the name of project specific SPV, i.e. Khavda II-D Transmission
12 Khavda RE Transmission Limited 21-Mar-2023
selection of Transmission Service Providers through Tariff Based Limited, is under process as the related inter-state Transmission Project is
Further, Shri Ajay Kumar Mishra, Hon’ble Minister of State 13 Khavda II- A Transmission Limited 28-Mar-2023 de-notified by Central Electricity Authority, Ministry of Power.
(Ministry of Home Affairs), in a conference organized by the Competitive Bidding (TBCB) process, for independent inter-state
48 49
Further, after the end of financial year 2022-23, these new which is first of its kind in the region. It is extremely useful 24. DIRECTORS, KMP & POLICY FRAMEWORK RELATED 24.1 CMD and Whole-time Directors
SPVs have been incorporated as wholly-owned subsidiaries in catering present & future energy demand and providing THERETO
 Pursuant to a communication dated May 13, 2022 issued
of RECPDCL and REC, namely: quality and reliable power 24x7 to the entire region.
Being a Government company within the meaning of the by the Appointments Committee of the Cabinet (ACC)
(1) Jalpura Khurja Power Transmission Limited 21.4 Other assignments: Companies Act, 2013 and in terms of Article 91 of the Articles read with subsequent order issued by the Ministry of
(2) Rajasthan Part I Power Transmission Limited of Association of the Company, all Directors on the Board Power, Shri Vivek Kumar Dewangan, IAS (DIN 01377212)
a. Your Company’s wholly owned subsidiary, RECPDCL
of REC are nominated / appointed / reappointed by the was appointed as the CMD of the Company, in the rank
(3) Dhule Power Transmission Limited continued to provide the IT Support services for R-APDRP and pay of Additional Secretary to the Government of
President of India acting through the Administrative Ministry
(4) Ishanagar Power Transmission Limited (Part-A) System & Management and Technical Services for i.e., Ministry of Power, Government of India. India, with effect from May 17, 2022.
Commercial processes covering SAP support, Geographical
(5) Karera Power Transmission Limited The nomination / appointment / reappointment of Directors  Due to the appointment of Shri Sudhir Kumar Gangadhar
Information System, Network Analysis Support, Revenue
(6) Shongtong Power Transmission Limited Assurance and AMR Support etc. along with Facility and their eligibility criteria, qualifications, experience and Rahate, IAS (DIN 05254178) as Secretary, Department
(7) Pachora Power Transmission Limited Management Services (FMS). Further, RECPDCL has prepared selection procedure etc., is also subject to the prescribed of Justice, Ministry of Law & Justice, he ceased to be a
Action Plan & DPR under RDSS scheme and also executing norms of Department of Personnel & Training (DoPT), CMD of the Company with effect from May 10, 2022.
21.1 During the financial year 2022-23, RECPDCL recorded an Department of Public Enterprises (DPE), Public Enterprises Accordingly, the MoP vide its order dated May 10, 2022,
PMC work under R-APDRP part-B having project cost of
income of ₹307.26 crore, as compared to income of ₹177.20 Selection Board (PESB) etc., as applicable from time to time, had assigned the additional charge of CMD-REC to Shri
approx. ₹1,000 crore in 34 packages.
crore in the previous financial year. The Profit After Tax for the the compliance of which is taken care at the end of the Ravinder Singh Dhillon (DIN: 00278074), the CMD of
financial year 2022-23 was ₹139.79 crore, as against ₹53.03 b. In terms of mandate under RE-Bundling scheme, as Bid Administrative Ministry. Power Finance Corporation Limited, for a period of three
crore in the previous financial year. Further, the Net Worth of Process Coordinator, RECPDCL has recently concluded the months or until further orders. Shri Dhillon handled the
RECPDCL as on March 31, 2023 was ₹440.93 crore, as against bidding process of 1,750 MW of Solar projects of NTPC (1,250 Further, being a CPSE, the remuneration of Functional
additional responsibility of CMD-REC during May 10 to
the Net Worth of ₹328.59 crore as on March 31, 2022. MW) & DVC (500 MW) amounting to ₹7,840 crore. Directors, Key Managerial Personnel and other employees
16, 2022, i.e., till the appointment of regular incumbent
of the Company, including Senior Management Personnel, is
21.2 Smart Prepaid Metering 22. JOINT VENTURE & ASSOCIATE COMPANY namely Shri Vivek Kumar Dewangan.
determined as per the extant guidelines on pay, perquisites,
allowances etc. issued by the Department of Public Enterprises  Further, vide order dated July 15, 2022, MoP had
Your Company’s wholly owned subsidiary, RECPDCL, is During the financial year 2022-23, Company does not
(DPE) and/or Government of India from time to time. Non- conveyed approval of ex post facto entrustment of the
implementing Advanced Metering Infrastructure (AMI) have any Joint Venture & Associate Company, apart from
executive Directors (including Independent Directors) are additional charge of Director (Technical) to Shri Ajoy
projects across the country as Project Implementation investments, as detailed in the financial statements, forming
paid sitting fees for attending the meetings of Board or Choudhury, Director (Finance), for the period February
Agency (PIA). The Company has already completed projects part of this Annual Report. Further, in terms of the agreement
Committees thereof, which is well within the applicable 1, 2022 till the date of joining of regular incumbent i.e.,
for installation of approx. 1.24 lakh smart meters in Jammu executed amongst the Joint Venture partners i.e., NTPC
provisions of the Companies Act, 2013. The Government July 14, 2022.
and Kashmir regions and approx. 25 thousand smart meters Limited, REC Limited, Power Finance Corporation Limited and
Nominee Director is not entitled to receive any sitting fees Pursuant to order dated July 15, 2022, the MoP has
in Chandigarh. Power Grid Corporation of India Limited, EESL ceased to be a 
from the Company, as per norms of the Government of India. appointed Shri Vijay Kumar Singh (DIN 02772733),
jointly controlled entity under Ind-AS framework.
In addition, projects for installation of approx. 5.5 lakh smart Further, the Nominee Director of PFC is entitled to receive who was earlier serving as Executive Director in the
meters in Jammu and Kashmir and 60 thousand meters in 23. CONSOLIDATED FINANCIAL STATEMENTS sitting fee for attending the Board or Committee meetings of Company, as Director (Technical) of REC in the scale of
Ladakh is ongoing out of which 2,33,000 Nos. of smart meters REC, which is paid to PFC. However, Smt. Parminder Chopra, pay of ₹1,80,000- 3,40,000 (IDA), with effect from the
Pursuant to Section 129 of the Companies Act, 2013 and
have already been installed. Under RDSS scheme, RECPDCL Nominee Director of PFC has convevyed that no sitting fee is date of his assumption of charge of the post till the date
Rules made thereunder and Indian Accounting Standards,
is also working as PIA for implementation of 42 lakh Smart to be paid in connection with Board or Committees meetings of his superannuation i.e., June 30, 2025 or until further
the Company has prepared the Consolidated Ind-AS Financial
meters in Gujarat and 14.95 lakh Smart meters in UT of of REC attended by her. orders, whichever is earlier. Shri V.K. Singh assumed the
Statements for the financial year 2022-23, that includes its
Jammu & Kashmir. charge of Director (Technical) w.e.f. July 15, 2022. Further,
wholly owned subsidiary company i.e., RECPDCL. The same The Company has adopted a policy on diversity
21.3 Implementation of Transmission Projects: shall also be laid before the ensuing 54th Annual General and skills of the board, criteria for appointing senior MoP vide its letter dated August 10, 2023, rechristened
Meeting along with the Standalone Financial Statements of management personnel and remuneration to directors, the existing post of Director (Technical) of the Company
Your Company’s wholly owned subsidiary, RECPDCL, is acting as Director (Projects).
the Company. KMPs and other employees, which can be accessed at
as Project Implementing Agency (PIA)/Project Management https://recindia.nic.in/uploads/files/Amended---Policy-on-
Agency (PMA) in various Transmission utilities across country Pursuant to Section 129(3) of the Act, a statement containing 24.2 Nominee Directors
Board-Diversity--Other-matters-dt-150722.pdf.
by providing services in terms of Project Implementation and the salient features of the financial statements of subsidiaries,  The Ministry of Power, vide its office order dated
Project Management. At present, RECPDCL is implementing associates and joint ventures in Form AOC-1, forms part Further, being a NBFC, inter-alia, the appointment of Directors September 14, 2022, had appointed Shri Piyush Singh
various transmission projects including 220 kV Extra High of this Annual Report. The financial statements of Special in REC is also subject to due diligence by the Nomination & (DIN 07492389), Joint Secretary MoP as the Government
Voltage (EHV) Transmission Lines (TL) project in UT of Ladakh Purpose Vehicle (SPV) companies, which are wholly-owned Remuneration Committee (NRC), as per the Company’s policy Nominee Director on the Board of REC, vice Shri Vishal
at an altitude of approx. 5,359 meters above mean sea level, subsidiaries of RECPDCL, are not consolidated with the on fit & proper criteria of Directors, which can be accessed Kapoor (DIN 08700132), who was the earlier Government
which is India’s highest transmission line, as well as modern financial statements of REC, since the investment / interest in at https://recindia.nic.in/uploads/files/Amended---Policy-on- Nominee Director on the Board of REC.
Gas Insulated Substation in Nubra & Zanskar valley of Ladakh such companies is held for sale and therefore, interest in such Fit--Proper-Criteria.pdf.
 The Ministry of Power, vide its letter dated July 11, 2023,
under PMDP-15 on behalf of Ladakh Power Development SPV companies is accounted for as per Ind-AS 105. As per the provisions of the Companies Act, 2013, the Board had appointed Shri Manoj Sharma (DIN 06822395)
Department (LPDD). These projects will connect Ladakh of Directors of the Company has designated the Chairman
The Audited Ind-AS Financial Statements including Director (Commercial) of Power Finance Corporation
to uninterrupted grid power supply and will help in socio- and Managing Director (CMD), Director (Finance), Director
the Consolidated Ind-AS Financial Statements and Limited as the PFC Nominee Director w.e.f. July 11, 2023
economic development of the region and in reducing (Projects) and Company Secretary as Key Managerial
Audited Accounts of subsidiaries of the Company on the Board of REC, vice Smt. Parminder Chopra (DIN
dependence of DG set for power supply, which in turn Personnel (KMPs) of the Company.
are available on the website of the Company i.e., 08530587), who was the earlier PFC Nominee Director
will result in decreasing the overall Carbon footprint and
https://recindia.nic.in/recpdcl-annual-accounts. Further, these Being a Government Company, the role of CEO is being on the Board of REC. Accordingly, Smt. Parminder Chopra
associated pollution problem in the entire Ladakh region.
documents would be kept open for inspection through performed by CMD and the role of CFO is performed by ceased to be PFC Nominee Director w.e.f. July 11, 2023.
RECPDCL is also acting as a Project Implementing Agency electronic mode by any member or any trustee for debenture Director (Finance) of the Company. 24.3 Independent Directors
for construction of 2 nos. 220/33 kV substations (GIS & AIS) holders. The Company would also make available copy
Particulars of Directors & KMP and changes made during and  The Ministry of Power, vide order dated March 3, 2023, had
in Kashmir & Jammu regions, respectively. The work of GIS thereof through e-mail upon specific request by a member of
after the year are brought out below: appointed Shri Narayanan Thirupathy (DIN 10063245) as
substation at Lassipora, Kashmir region has been completed, the Company.
50 51
Part-time Non-official (Independent) Director on the the framework prescribed in MoU Guidelines issued by DPE.
Board of REC w.e.f. March 6, 2023, for a period of three The MoU demarcates key performance parameters for the
years with effect from the date of notification or until Company finalized in consultation with the Ministry of Power,
further orders. Government of India and the performance of the Company is
24.4 Director(s) retiring and seeking appointment / re- evaluated vis-à-vis the MoU parameters.
appointment at the ensuing AGM 26. DIRECTORS’ RESPONSIBILITY STATEMENT
In accordance with the provisions of the Companies Act, With reference to Section 134(5) of the Companies Act, 2013,
2013 and Article 91 (iv) of the Articles of Association of the it is confirmed that:
Company, Shri Vijay Kumar Singh, Director (Projects) shall
retire by rotation at the ensuing 54th AGM of the Company (i) in the preparation of the annual accounts for the year
and being eligible, offers himself for re-appointment. Further, ended March 31, 2023, the applicable Accounting
pursuant to Regulation 17(1C) of SEBI LODR Regulation, the Standards have been followed and no material
appointment of Shri Narayanan Thirupathy as Independent departures have been made from the same;
Director and Shri Manoj Sharma as PFC Nominee Director is (ii) such accounting policies have been selected and
also being submitted to the shareholders for approval. The
applied consistently (except for the adoption of
Board recommends their appointment/re-appointment.
newly effective Indian Accounting Standards as
Brief resume and other particulars of Shri V.K. Singh, Shri disclosed in the Notes to Accounts to the Financial
Narayanan Thirupathy and Shri Manoj Sharma are annexed to Statements) and judgments and estimates made
the Notice of AGM forming part of this Annual Report. that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Company at
24.5 Company Secretary
the end of the financial year and of the profit of the
Shri J.S. Amitabh is Company Secretary of the Company. Company for that period;
25. EVALUATION OF BOARD OF DIRECTORS/INDEPENDENT (iii) proper and sufficient care is taken for the maintenance
DIRECTORS of adequate accounting records in accordance with the
provisions of the Companies Act, 2013, for safeguarding
As per the statutory provisions, a listed company is required the assets of the Company and for preventing and
to disclose in its Board’s Report, a statement indicating the Hon’ble Minister of Power and MNRE, Shri R.K. Singh felicitated Shri Vivek Kumar Dewangan, CMD REC, with Green Ribbon Champions Award for its
detecting fraud and other irregularities; Commitment to Environmental Sustainability
manner in which formal annual evaluation of the performance
of the Board, its Committees and individual Directors has (iv) the annual accounts have been prepared on a going  Awarded with the Golden Peacock Award for registered email addresses. As a responsible corporate citizen,
been made and the criteria for performance evaluation of its concern basis; Excellence in ‘Corporate Governance’ for the year the Company has actively supported the implementation of
Independent Directors, as laid down by the Nomination and 2022 by the Institute of Directors (IoD); ‘Green Initiative’ of the Ministry of Corporate Affairs (MCA) and
(v) internal financial controls have been laid to be
Remuneration Committee. effected electronic delivery of Notices and Annual Reports to
followed by the Company and such internal financial  Recognized as the ‘Best Public Sector IT Project ‘ award
However, the Ministry of Corporate Affairs vide its notification controls were adequate and operating effectively; at the Technology Excellence Awards 2022; shareholders, whose email ids are registered. The intimation
dated June 5, 2015 has, inter-alia, exempted Government of dividend (interim/final) is also being sent electronically to
(vi) the Directors had devised proper systems to ensure  Awarded with Golden Award by Government such shareholders.
companies from the above requirement, in case the Directors e-Marketplace (GeM) for its notable contribution
compliance with the provisions of all applicable laws
are evaluated by the Ministry or Department of the Central towards encouraging procurement from GeM for FY Further, pursuant to Section 108 of the Companies Act,
and that such systems were adequate and operating
Government which is administratively in charge of the 2022-23; 2013 read with Rule 20 of the Companies (Management
effectively.
company, as per its own evaluation methodology. Further, and Administration) Rules, 2014, the Company is providing
 Awarded under category ‘Operational Performance
MCA vide notification dated July 5, 2017, also prescribed 27. MoU RATING & AWARDS e-voting facility to all members to enable them to cast their
Excellence’ at the 12th PSE Excellence Awards; and
that the provisions relating to review of performance of votes electronically in respect of resolutions set forth in the
The performance of the Company in terms of MoU signed
Independent Directors and evaluation mechanism prescribed  Felicitated with Green Ribbon Champions Award for Notice of Annual General Meeting (AGM). The Company
under the guidelines of the DPE, Government of India for its Commitment to Environmental Sustainability.
in Schedule IV of the Companies Act, 2013, is not applicable will also be conducting the AGM this year through video
to Government companies. the financial year 2023 is likely to be excellent, subject to
final evaluation by DPE. For the financial year 2021-22 MoU Apart from above, Shri Vivek Kumar Dewangan, CMD, REC conferencing / other audio-visual means. Members can
Accordingly, being a Government company, REC is inter-alia has been conferred with the prestigious ‘The Most Promising refer to the detailed instructions for e-voting and electronic
rating of REC has been "Very Good", primarily due to a newly
exempted in terms of the above notifications, as the Business Leaders of Asia’ Award, at the 7th edition of the participation in the AGM, as provided in the Notice of AGM.
introduced parameter of stock price performance. During the
evaluation of performance of all members of the Board of Economic Times Asian Business Leaders Conclave 2022-23,
financial year, REC has been: for his stellar leadership in scaling up the operational business Members, who have not registered their e-mail addresses so
the Company is being done by the Administrative Ministry
matters in the power sector value chain, path-breaking far, are requested to register their e-mail addresses with the
i.e., the Ministry of Power and/or by the Department of  Accorded “Maharatna” status by the Department
energy transition initiatives, remarkable achievement and Registrar and Share Transfer Agent (R&TA) of the Company or
Public Enterprises (DPE). It is understood that during the of Public Enterprise, Government of India for the
contribution to the overall well-being of the economy. their respective Depository Participant (DP) and take part in
financial year 2022-23, the performance evaluation of Non- Company’s operational efficiency and financial
the green initiative.
Executive Directors of the Company was carried out by the strength; 28. ‘THINK GREEN, GO GREEN’ INITIATIVE
Administrative Ministry, as per their internal guidelines. 29. COMMITMENT TO SWACHHTA
 Awarded as the ‘Best PSU’ in the Financial Services The Companies Act, 2013 permits companies to send
Further, your Company also enters into Memorandum of category and also as the ‘Best Navratna’ by Dun & documents like Notice of Annual General Meeting, Annual REC has undertaken activities for creating awareness on
Understanding (MoU) with its holding company, PFC, under Bradstreet for financial year 2021-22; Report etc. through electronic means to its members at their Swachhta, like installation of dustbins at various public places,
52 53
plantation drive nearby office premises, interactive session on Offices, special cleanliness drive and fumigation in slum area audit of suo-moto disclosures by a third party, third-party 32. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF
waste management and cleanliness for employees, special near by corporate office premises and organizing best out of audit of RTI Disclosures has been carried out and the report is WOMEN AT WORKPLACE (PREVENTION, PROHIBITION
cleanliness drive at public utilities by Regional Office’s/State waste competitions in school, under the Swachhta Action Plan. posted on REC’s website. AND REDRESSAL) ACT, 2013
31. REPORTING UNDER PUBLIC PROCUREMENT POLICY FOR In line with the provisions of Sexual Harassment of Women
MICRO & SMALL ENTERPRISES (MSEs) ORDER, 2012 at Workplace (Prevention, Prohibition & Redressal) Act, 2013
(PoSH Act), an ‘Internal Complaints Committee’ has been
The Guidelines for MSMEs, as defined in the purchase procedure,
constituted in the Company for redressal of complaint(s)
are being followed by the Company. As an endeavor to foster
against sexual harassment of women employees. The
the Government’s ambitious initiatives for the promotion of
committee aims at sensitizing women employees and provide
MSME sector and in order to surpass the prescribed public
a healthy and congenial atmosphere to work. The committee
procurement norms, revised with effect from November 2018,
is headed by a senior woman official of the Company and
REC has already made it mandatory to procure 100% of certain
includes representative of NGO as one of its members. Anti-
common use goods and services valuing upto ₹10 lakh from
sexual harassment stance of the Company is also outlined in
MSE vendors and also to allow purchase preference upto 25%
REC (Conduct, Discipline and Appeal) Rules.
of the tendered value to MSEs, out of which 4% is reserved
for MSEs owned by SC, ST and 3% is reserve MSEs owned by During the financial year 2022-23, the Company did not
women entrepreneurs for all cases where L1 vendor is other receive any complaint of sexual harassment.
than MSE vendors by allowing MSE vendors for price matching
with L1 if MSE bidders have quoted price within the band of 33. ANNUAL RETURN
L1+15%, wherever splitting is feasible. Further, REC is registered The Annual Return of the Company for the financial
on GeM (Government e-Marketplace), Sambandh, Samadhan year 2021-22 filed with the Ministry of Corporate Affairs
and TReDS (Trade Receivables Discounting System) portals of (MCA); and the draft Annual Return for the financial year
the Government of India (GoI) and all offices of REC, including 2022-23, are available on the website of the Company at
regional offices, are effectively using the same. https://www.recindia.nic.in/annual-returns.
During the financial year 2022-23, total procurement made After filing of the Annual Return for financial year 2022-23
by the Company was ₹56.13 crore and REC not only achieved, with MCA, the same will be uploaded on the website at the
but exceeded its targets set by the Government. The same weblink.
procurement from GeM portal was ₹50.10 crore (achieved
more than the target of 25%) and procurement from MSEs 34. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH
was ₹30.87 crore (achieved more than the target of 25%), RELATED PARTIES
out of which procurement from SC/ST was ₹0.33 crore and The particulars of Related Party Transactions required to be
procurement from women entrepreneurs was ₹1.31 crore. disclosed in Form AOC-2 for the financial year 2022-23 is
The procurements from SC, ST and women entrepreneurs, annexed to this Report.
highly depends on the claims lodged by vendors, on which
REC has no control. It is also noteworthy, that there was no 35. AUDITORS
Interactive session on waste management and cleanliness for employees complaint against REC regarding delay in payments or any
35.1 Statutory Auditors
other grievance by any MSME vendor, on GoI’s Samadhan
30. RIGHT TO INFORMATION ACT, 2005 Sl. no. Particulars of RTI Nos. portal during the year. M/s S.K. Mittal & Co., Chartered Accountants, New Delhi
The purpose of the Right to Information Act, 2005 (‘RTI Act’) 1. Applications received 328 (firm registration no.: 001135N) and M/s O.P. Bagla & Co. LLP,
Your Company has made it compulsory for all its Pan-India
is to enable the citizens to seek information from the public 2. Applications disposed of 303 Chartered Accountants, New Delhi (firm registration no.:
offices to have 100% procurement of Common use Goods
authorities and to ensure transparency and accountability in 000018N/N500091) were appointed as Statutory Auditors
3. Applications received in 25 and Services available on GeM are required to be procured
of your Company for the financial year 2022-23 by the
their functioning. An RTI Cell is in existence in the Company March, 2023 were disposed of mandatorily through GeM only; and has conducted a
Comptroller & Auditor General (C&AG) of India. The Statutory
to deal with applications received under the RTI Act. The subsequently* comprehensive GeM procurement training programme
Auditors have audited the standalone and consolidated
Company has designated a Chief Public Information Officer 4. First appeals received by Appellate 27 for its employees, having specially featured sessions of
financial statements of the Company for the financial year
(PIO) to respond to the RTI applications and a First Appellate Authority, REC faculty from GeM. The same were attended and praised
2022-23 and have given their report without any qualification,
overwhelmingly by the participants. REC has also conducted
Authority (RTI) to adjudicate on RTI First Appeals for effective 5. First appeals disposed of by 27 reservation, adverse remark or disclaimer. The Auditors’
its Annual Vendor Development Programme (VDP) through
implementation of the RTI Act. The RTI Cell also comprises of Appellate Authority, REC Report(s) are forming part of this Annual Report.
online session, which was attended by various vendors.
an Assistant Public Information Officer. The entire functioning 6. Appeals disposed of subsequently - Further, the appointment of the Statutory Auditors for the
of the RTI Cell and implementation of the RTI Act in REC is All tenders of REC are in full compliance of GoI’s ‘Make in India’ financial year 2023-24 is yet to be made by the C&AG of India.
7. Second appeals received from 1
observed by the Transparency Officer. directions, as applicable. Further, as per GoI’s directives, such Approval of the Members will be obtained in the ensuing
Central Information Commission
compliance is being monitored quarterly by the Board of AGM, to authorize the Board of Directors to fix remuneration
REC is also associated with the online RTI Portal of 8. Second appeals disposed of by 1 Directors; and on a case-to-case basis by the Sub-committee
Central Information Commission of the Statutory Auditors for the financial year 2023-24, as
Government of India, Department of Personnel & Training to ensure compliance of GoI directives on ‘Make in India’, for may be appointed by C&AG.
*The pending applications and appeals were disposed of within the tenders valuing ₹250 crore or above.
https://rtionline.gov.in/, which enables citizens of India, to time frame. 35.2 Secretarial Auditors
file RTI applications/first appeals online along with a payment REC’s Public Procurement Policy for MSEs and Make in India is
gateway. Below is the information pertaining to the number Further, REC has placed the requisite information on its included in all the tenders duly published on the website of M/s Hemant Singh & Associates, Company Secretaries, Delhi
of applications and appeals received by the RTI Cell, during website, in compliance with the requirements specified the Company and on the CPPP (Central Public Procurement (Certificate of Practice no. 6370), were appointed as Secretarial
by Department of Personnel & Training (DoPT). Further, in Portal). The same is also being examined and monitored Auditors for carrying out Secretarial Audit of the Company
the period of April 1, 2022 to March 31, 2023:
compliance of the said Guidelines, which provide for annual on quarterly and annual basis by the Independent External for the financial year 2022-23. In terms of Section 204 of the
Monitor (IEM) appointed by CVC. The IEM has found that all Companies Act, 2013 and Rules made thereunder, they have
procurement activities are in order and has appreciated the issued Secretarial Audit Report for the financial year 2022-23
efforts and achievements of REC. and the same is annexed to this Report.
54 55
35.3 Management’s comments on the Auditors’ Report(s) incorporated in this report, as required vide OM dated other applicable statutory provisions, separate sections
January 24, 2018 of the Ministry of Parliamentary Affairs, containing Management Discussion & Analysis Report,
The management’s reply to the observations of the Secretarial Auditors is as under:
Government of India. Report on Corporate Governance, Business Responsibility &
Observation of Secretarial Auditors Management’s Reply k) The Central Government has not prescribed the Sustainability Report, are enclosed to this Board’s Report. The
maintenance of cost records for the products/services of Company has prepared an Integrated Report for the financial
The Company was not in compliance with the Regulation REC is a Government Company and as per the provisions
the Company under the Companies (Cost Records and year 2022-23 on a voluntary basis, as per SEBI Circular dated
17 (1) of the SEBI (LODR), in respect of the appointment of of Article 91 of Articles of Association of the Company,
Audit) Rules, 2014 read with the Companies (Cost Records February 6, 2017.
requisite number of Independent Directors, as the Board the power to appoint Directors on the Board of the
had a total of four Independent Directors against the Company vests with the President of India, acting through and Audit) Amendment Rules, 2014 prescribed by the Various statutory reports, information, certificates etc., in
requirement of five Independent Directors as on March 31, the Administrative Ministry, i.e. the Ministry of Power, Central Government under Section 148 of the Companies terms of the Companies Act, 2013, SEBI (Listing Obligations &
2023. Government of India and the Company has no role in the Act, 2013. Accordingly, cost accounts and records are not Disclosure Requirements) Regulations, 2015, DPE Guidelines
appointment of Directors on its Board. required to be maintained by the Company. on Corporate Governance for CPSEs, 2010 and other
applicable statutory provisions, are enclosed to the Board’s
The Company has been requesting & following up with the l) During the year under review, the statutory auditors/
Report as under:
Ministry of Power, Government of India, for appointment of secretarial auditors have not reported to the Audit
requisite number of Independent Director on its Board. Committee, any instances of fraud committed against the Particulars Annexure
Company by its officers or employees. Management Discussion & Analysis Report I
Further, MoP has also requested Department of Public
Enterprises, Government of India, to expedite appointment m) The Company is compliant with the applicable Secretarial Report on Corporate Governance II
of one more Independent Director on the Board of REC. Standards issued by the Institute of Company Secretaries Business Responsibility & Sustainability Report III
of India. Integrated Report IV
The Company will be in due compliance with the applicable Secretarial Audit Report V
provisions of SEBI (LODR) 2015, on appointment of one more n) The Independent Directors of the Company are
Auditor’s Certificate on Corporate Governance VI
Independent Director by the Ministry of Power, Government nominated/appointed by the President of India acting
Annual Report on CSR Activities VII
of India, on the Board of REC Limited. through the Administrative Ministry, i.e., MoP. Accordingly,
the appointing authority considers the integrity, expertise Particulars of Contracts or Arrangements with VIII
Related Parties
36. COMMENTS OF C&AG OF INDIA For details, please refer to the ‘Management Discussion and experience of the individual to be nominated/
Details of Debenture Trustees appointed for IX
and Analysis Report’ annexed to this report. appointed. In the opinion of the Board, the Independent
The Comptroller & Auditor General (C&AG) of India, vide different series of Bonds
Directors appointed during the year, are persons of
letter(s) dated July 31, 2023 have given ‘NIL’ comments on the e) Information on composition, terms of reference and integrity and possess the relevant expertise, proficiency 40. ACKNOWLEDGEMENTS
Audited Financial Statements of the Company for the financial number of meetings of the Board and its Committees and experience to contribute effectively to the Company.
year ended March 31, 2023 under Section 143(6)(a) of the held during the year, establishment of Vigil Mechanism/ The Directors whole-heartedly thank the Ministry of Power,
Further, during the year, all the Independent Directors Ministry of Finance, Ministry of Corporate Affairs, NITI Aayog,
Companies Act, 2013. Whistle Blower Policy and web-links for familiarization have met the requirements specified under Section 149
programmes of Directors, Policy on Materiality of Department of Investment and Public Asset Management,
The comments of C&AG for the financial year 2022-23 have (6) of the Companies Act, 2013 and necessary declaration Department of Public Enterprises, Reserve Bank of India,
Related Party Transactions and Dealing with Related from each Independent Director was also received as
been placed along with the report of Statutory Auditors of the Party Transactions, Policy for determining Material Securities & Exchange Board of India and the Comptroller
Company in this Annual Report. required. & Auditor General of India, for their guidance and support
Subsidiaries, compensation to Key Managerial Personnel,
37. DEBENTURE TRUSTEES sitting fees to Directors and details regarding IEPF o) The Company has adequate internal financial controls to the Company. The Directors also thank Power Finance
etc. have been provided in the ‘Report on Corporate with reference to the financial statements. Corporation Limited, the holding company, for their
In compliance with SEBI (Listing Obligations & Disclosure Governance’, prepared in compliance with the provisions continued support.
p) There is neither any pending IBC (Insolvency & Bankruptcy
Requirements) Regulations, 2015, a list containing the of SEBI (Listing Obligations & Disclosure Requirements) The Directors extend their gratitude to all shareholders,
Code) proceeding against REC, nor have we received any
details of Debenture Trustees appointed by the Company for Regulations, 2015 and DPE Guidelines on Corporate investors, lenders and security holders for their faith in
notice for initiation of any IBC proceedings against the
different series of its bonds / debentures issued from time to Governance, 2010, as amended from time to time, which the Company. The Directors also thank all customers and
Company.
time, is annexed to this Report. forms part of this Annual Report. borrowers, including State Governments, State Electricity
q) During the financial year 2022-23, no event has taken
38. STATUTORY DISCLOSURES f ) Pursuant to Section 186(11) of the Companies Act, 2013, Boards, State Power Utilities and Independent Power
place that give rise to reporting of details w.r.t. difference
loans made, guarantees given, securities provided or Producers, for reposing their trust and continuing their
a) There was no change in the nature of business of the between amount of the valuation done at the time of
investment made by a company engaged in the business association with the Company.
Company during the financial year 2022-23. However, onetime settlement and the valuation done while taking
the Memorandum of Association of the Company has of financing of companies or of providing infrastructural loan from the Banks or Financial Institutions. The Directors are grateful to Statutory Auditors, Secretarial
been amended by way of a Special Resolution passed facilities in the ordinary course of its business are not Auditors and other professionals associated with the
on October 27, 2022 by the Shareholders through Postal applicable to the Company, hence no disclosure is 39. ANNEXURES TO BOARD’S REPORT Company, for their continuous support to the management.
Ballot of the Company. The amendment was done with a required to be made. Further, details of investments are Last but not the least, the Directors thank the employees and
In terms of the provisions of SEBI (Listing Obligations staff, for working relentlessly in pursuit of excellence.
view to, inter-alia, enable the Company to lend to logistics appearing at note no. 10 of the Notes to Accounts of the
& Disclosure requirements) Regulations, 2015 and
and infrastructure sectors to the extent permitted by the standalone financial statements.
Government of India. g) The provisions of Section 197 of the Companies Act,
b) The Company has not accepted any public deposits 2013 and Rules made thereunder relating to managerial
during the financial year 2022-23 and the Board of remuneration are not applicable to Government
companies, therefore no disclosure is required to be For and on behalf of the Board of Directors
Directors of the Company has passed requisite resolution
in this regard, in compliance of RBI Guidelines. made.
c) No orders were passed by the regulators or courts or h) There are no material changes and commitments
tribunals impacting the going concern status and the affecting the financial position of the Company, which
Company’s operations in future. has occurred between the end of the financial year i.e., Vivek Kumar Dewangan
March 31, 2023 and the date of this report. Chairman & Managing Director
d) The Company maintains an adequate system of Internal (DIN: 01377212)
Control, including suitable monitoring procedures to i) The Company has not issued any stock options to the Place : Gurugram
ensure accurate and timely financial reporting of various Directors or any employee of the Company. Date : August 11, 2023
transactions, efficiency of operations and compliance j) The details related to vigilance cases, replies to audit
with statutory laws, regulations and Company policies. objections and RTI matters etc., as applicable, are duly
56 57
ANNEXURE-I TO BOARD’S REPORT 2023-24 by the Government of India, with a substantial increase of 43% to over 64%, thereby exceeding the energy transition goals of
33.4% in capital investment outlay, amounting to ₹10 lakh crore. the country.
Management Discussion & Analysis Report In recent years, inflation has been significant concern for the Indian Renewable Energy Sources
The management of the Company is pleased to present its specifically, although due to Covid related restrictions China’s growth economy. However, in response to monetary policy actions and
Globally, India stands at 4th position in terms of Renewable Energy
report on the business environment & industry scenario, industry was affected. Further, India experienced a significant 8.4% increase supply side measures, headline CPI inflation has gradually declined
Installed Capacity (including large hydro), 4th in Wind Power capacity
risks, opportunities and the Company’s financial & operational in electricity demand in 2022, driven by a combination of its robust from its peak of 7.8% in April 2022 to 5.7% in March 2023 and is
& 4th in Solar Power capacity. As on March 31, 2023, India’s installed
performance during the financial year 2022-23. post-pandemic economic recovery and extreme weather conditions. projected to ease further to 5.2% for the financial year 2023-24.
renewable energy capacity (including large hydro) stood at 172
The share of renewables in the global power generation mix was Foreign direct investment (FDI) plays a crucial role in India’s economic GW. Out of which, Solar energy contributed 66.78 GW, followed by
BUSINESS ENVIRONMENT forecasted to rise from 29% in 2022 to 35% in 2025. The expansion growth. The Government has been implementing various reforms to 42.63 GW from wind power, 42.1 GW from hydro and 20.49 GW from
of renewables will lead to a decline in the shares of coal and gas fired attract foreign investments, including liberalizing foreign investment bio-power, waste, small hydro, etc. In terms of renewables capacity
Global Business Environment stations. Consequently, emissions of global power generation are policies and simplifying the process of doing business in India. addition in the year, a total of 15.3 GW capacity was added, out of
Global economic recovery remain dim amid stubborn inflation, expected plateau by 2025 and its CO2 intensity will further decline in Over the past two decades, India has experienced a remarkable 20 which Solar addition was 12.8 GW, wind 2.3 GW, Bio power & Small
rising interest rates and heightened uncertainties. Instead, the the coming years. fold increase in annual FDI inflows, positioning itself as a favored Hydro 0.2 GW respectively.
world economy faces the risk of a prolonged period of low growth In a world where both the demand and supply of electricity are investment destination.
Transmission & Distribution
as the lingering effects of the CoVID-19 pandemic, ongoing becoming increasingly weather-dependent, electricity security
INDUSTRY STRUCTURE AND DEVELOPMENT
conflict in Ukraine, the ever-worsening impact of climate change requires increased attention. Along with the high cost of electricity Transmission
and macroeconomic structural challenges remain unaddressed. generation, the world’s power systems also faced challenges from Industry Overview
According to IMF World Economic Outlook report 2023, global Transmission is a crucial element in the power delivery value chain
extreme weather events like heatwaves in India, drought in Europe, In the post-pandemic recovery phase, the Power Sector has been
growth will bottom out at 2.8 percent in 2023 before rising modestly and facilitates evacuation of power from generating stations to
winter storms in United States etc. Mitigating the impacts of climate buoyant, aided by rising demand and energy transition focus. In
next year. Further, emerging markets and developing economies are the load centers, both inter-state and intra-state. Efficient dispersal
change requires faster decarbonisation and accelerated deployment the financial year 2022-23 the total power generation reached 1624
already powering ahead in many cases, with growth rates jumping of power to deficit regions requires commensurate strengthening
of clean energy technologies. Accordingly, the share of weather- BU, marking an 8.87 % growth compared to the previous year. Peak
from 2.8% in 2022 (Q-o-Q) to 4.5% this year. Advanced economies are of Intra-State Transmission System (ISTS) network; enhancing the
dependent renewables in the generation mix will continue to grow. electricity demand continued to increase consistently over the years
expected to experience a significant slowdown in growth, dropping Inter-State power transmission system and augmentation in the
In such a world, increasing the flexibility of the power systems while and reached 215.9 GW during financial year 2022-23. Renewable
from 2.7% in 2022 to 1.3% in 2023. Growth in the volume of world National Grid.
ensuring security of supply and resilience will be of paramount energy generation (excluding Hydro) during the year witnessed a
trade is expected to decline from 5.1% in 2022 to 2.4% in 2023, importance. During the financial year 2022-23, a total of 14,625 cKM transmission
significant increase of 18.72% i.e. 203 BU over the previous year. Non-
echoing the slowdown in global demand. lines were added together with 75,902 MVA of transformation (sub-
fossil fuel power generation as a whole stood at 418 BU, reflecting a
Indian Business Environment station) capacity. As on March 2023, our country has one of the
During the financial year 2022-23, the world economy demonstrated growth rate of 10.9% compared to the previous year. Consequently,
growth driven by the resilience of labour markets, robust households the share of non-fossil energy stood at 26%. Further, the installed largest synchronous interconnected electricity grids in the world with
India stands as one of the world’s fastest-growing economies,
consumption, business environment etc. However, the US Federal power capacity addition during the year was 17 GW, taking the 4,71,341cKM of transmission line and 11,80,352 MVA of transformation
benefitting from its diverse business environment and a vast
Reserve and Central Banks across the world reversed the quantitative total installed capacity to 415.50 GW by the end of financial year. capacity.
consumer base and as per IMF, likely to transit from estimated
easing measures implemented during the pandemic years, which level of USD 3.4 trillion to USD 5 trillion economy by 2027. The It is noteworthy that renewable energy accounted for 90% of the As a significant step towards successfully achieving the planned
consequentially ended the era of near zero interest rates. The Federal country is renowned for its large-scale manufacturing, IT services, added capacity. The share of non-fossil capacity also increased from renewable energy capacity of 500 Gigawatt (GW) by 2030, CEA
Reserve pulled back pandemic-era policies in the US and effected and agriculture sectors. The Indian government has actively 41% to 43% compared to the previous year. Peak electricity demand portrayed the broad transmission system roadmap for reliable
unprecedented rate hikes during the year to tame inflation, resulting pursued reforms to facilitate a conducive business environment by witnessed an all-time high of 215.9 GW, as compared to 203 GW in integration of 537 GW renewable energy capacity by the year 2030.
in interest rate increase from 0.25% in March 2022 to 5% by the end implementing various reforms to promote ease of doing business, the previous year. Additionally, the overall Plant Load Factor (PLF) The length of the transmission lines and sub-station capacity planned
of financial year 2023. As a result, inflation in the US decreased from attracting foreign investments and nurturing the growth of start-ups. improved to 64.15% against 58.9% over last year. under ISTS for integration of additional wind and solar capacity by 2030
8.54% in March 2022 to 4.98% by the end of financial year 2023. Supported by strong macroeconomic fundamentals, robust domestic has been estimated as 50,890 cKM and 4,33,575 MVA respectively at an
Industry-Structure
Going forward, investors have lowered their expectations of global demand, fiscal discipline, high saving rates and demographic trends, estimated cost of ₹2,44,200 crore. The transmission schemes have been
India has emerged as the fifth-largest economy globally. Generation planned considering energy storage, so as to meet the requirement of
interest rate hikes following the sudden failure of some mid-sized
As on March 31, 2023, the installed power generating capacity in Round-The-Clock (RTC) power. Several HVDC transmission corridors
banks in certain advanced economies. The trust in the banking sector According to the Economic Survey forecast and Reserve Bank
the Country was 415.50 GW comprising of 100 GW in the Central have also been planned for the evacuation of power from large
of these countries have not fully recovered and the global financial of India (RBI), India is expected to achieve a growth rate of
Sector; 105.5 GW in the State Sector, 210 GW in the Private Sector. In renewable energy potential zones.
system has faced significant challenges. 6.5% in the financial year 2023-24. This projection indicates
that India’s economic growth next fiscal year will be the fastest terms of generation capacity by type, the conventional coal & lignite Distribution
Most commodity prices eased since mid-2022 to varying degrees,
among major economies. Therefore, in the upcoming years, capacity was 211.9 GW, Renewable Energy capacity 172 GW, Nuclear
due to slowing global growth. Oil prices declined from their mid-
increasing consumption and investments, both from domestic capacity 6.8 GW and Gas based capacity 24.8 GW. The Plant Load Distribution constitutes pivotal link within the power sector value,
2022 peak, as concerns about demand emerged; for the year as
and foreign sources, will play a significant role in driving the Factor (PLF) for thermal power plants across the country improved serving as the vital intermediary connectivity between utilities and
a whole, the price of Brent crude oil averaged $100/bbl. European
nation’s growth and potentially elevate India’s position in the World to 64.15% compared to 58.9% in the previous year. Central sector consumer. Throughout history, the domain of power distribution had
natural gas prices surged to an all-time high in August 2022 but
GDP Ranking. thermal stations achieved a PLF of 74.67%, whereas state sector and predominantly rested as the monopoly of Government-owned state
have since receded. Similarly, coal prices hit a record high during the
IPP sector achieved PLF of 61.85% and 56.63% respectively. utilities, with the private sector playing only a limited part. Recently
same time before beginning to soften by the end of calendar year Government policies and investment focus in infrastructure sub- this situation is reforming, as increasing number of private players are
2022. Although, energy prices are expected to ease in 2023, they sectors including roads, railways, multi-modal logistics, ports, Further, according to the Generation Expansion Planning studies
engaging in the sector.
are projected to remain higher than previously forecast, primarily waterways, shipping, energy transition and renewable energy etc. conducted by the Central Electricity Authority (CEA), the share of
reflecting an upward revision to coal prices. are expected to keep India on track to achieve its aim of becoming non-fossil fuel-based generation capacity in India is expected to The sector has been reeling under losses, making it crucial for the
a USD 5 trillion economy. It is noteworthy that Infrastructure sector witness substantial growth. By the year 2029-30, the share of non- policy makers to devise various measures to make the State Discoms/
In 2022, global electricity demand increased nearly by 2% and
was included as one of the “Saptarishi” (seven) priorities in Budget fossil fuel based generation capacity is likely to increase from current Utilities viable. Over the years, owing to, strong reform initiatives like
India and United States has contributed to this electricity demand
58 59
revision of tariff, National Electricity Fund (NEF) and Ujwal Discom  Incentives for manufacturing vital clean energy equipment, create over 6,00,000 jobs, by 2030. Further, this will enable to reduce decisions on loss reduction, demand forecasting, Time of Day (ToD)
Assurance Yojana (UDAY) etc. progress has been made in the overall including solar modules, electrolysers used in making green cumulatively fossil fuel imports over rupees one lakh crore and aid tariff, Renewable Energy Integration and for other predictive analysis.
functioning of the Discoms. Schemes namely, the Deen Dayal hydrogen have been announced; in abatement of nearly 50 MMT of annual greenhouse gas emissions.
It is pertinent to mention that earlier schemes of Deendayal
Upadhyaya Gram Jyoti Yojana (DDUGJY) for strengthening the
 Provision has been made for an inter-state transmission system for Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power
distribution system in rural areas and Integrated Power Development
evacuation and grid integration of 13 GW of renewable energy to (PM-KUSUM) Development Scheme (IPDS) along with Prime Minister
Scheme (IPDS) for strengthening the distribution system in urban
be generated in Ladakh. The project will be constructed with an Development Package (PMDP-2015) for the erstwhile State of
areas were implemented. Any gaps which were left in the distribution
investment of ₹20,700 crore, including the Central Government’s PM-KUSUM scheme is one of the largest initiatives in the world to Jammu & Kashmir, have been subsumed in RDSS as per their extant
system were addressed under SAUBHAGYA. This has resulted in 100%
support of ₹8,300 crore; provide clean energy to more than 3.5 million farmers by solarizing guidelines and under their existing terms & conditions.
village electrification and household electrification with significant
and robust last mile electricity connectivity. These schemes also Viability gap funding mechanism designed to provide capital their agriculture pumps.
 RDSS lays special emphasis on leveraging advanced technologies
have enabled Discoms in improving their operational efficiency support to Public Private Partnership (PPP) projects for battery to analyze data generated through IT/OT devices, including system
PM-KUSUM is a demand driven scheme and quantities/capacities are
parameters such as billing efficiency, collection efficiency, AT&C energy storage systems with a capacity of 4,000 MWh; and meters and prepaid smart meters, to materialize the envisaged
allocated based on demand received from the states. As of June 30,
losses and also the financial performance to some extent. ACS-ARR goal i.e., introducing advanced technologies like AI/ML (Artificial
 Support to aid the green growth through PPPs, including support 2023, grid-connected solar power plants of 113.08 MW capacity have
gap of Discoms at the national level has significantly reduced from Intelligence and Machine Learning) in power distribution, by
for scrapping and replacing old vehicles, ramping up battery storage been installed and 2.44 lakh agriculture pumps have been solarized
0.58 ₹/kWh in the financial year 2015 to 0.22 ₹/kWh in the financial leveraging partnerships and consultations.
systems, setting up compressed biogas plants and promoting under the scheme. This installed capacity is estimated to have
year 2022. AT&C losses during the same period have also decreased
coastal shipping to promote cheaper modes of transport. reduced the CO2 emissions by 0.67 million tonnes and reduced diesel
from 25.72% to 17%. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Other measures announced by the Government included allowing consumption by 143 million liters of diesel per annum.
As all these reform measures were largely aimed at improving the Government of India’s flagship programme, Deendayal Upadhyaya
100% FDI under automatic route, waiver of Inter State Transmission The Ministry of New and Renewable Energy has taken several steps to
financial health of Discoms, this eventually lead to a reduction charges for sale of power from solar and wind projects to be Gram Jyoti Yojana (DDUGJY), for which REC was the nodal agency,
achieve the targets under the PM-KUSUM Scheme, including recent
in outstanding dues to Power Generating Companies (GENCOS). commissioned by June, 2025; declaration of trajectory for Renewable has been completed in its sunset year 2021-22 i.e., on March 31, 2022.
amendments. The amendments resulted in extention of scheme
The outstanding dues of DISCOMSs to GENCOs have declined Purchase Obligation upto 2029-30; setting up ultra-mega renewable The MoP had notified DDUGJY in 2014, as an integrated scheme
till March 31, 2026, feeder level solarization has been introduced
considerably in the last one year which is expected to add to the energy park; schemes such as PM-KUSUM; Solar Rooftop Phase-II; covering all aspects of rural power distribution. The scheme had an
under Component-C of the scheme, to support small farmers, the
overall health of the power sector. CPSU Scheme Phase-II; laying new transmission lines and creating approved outlay of ₹43,033 crore, including budgetary support of
solar power projects smaller than 500 kW may be allowed by states,
Power Sector Policy Environment sub-station capacity under the Green energy corridor scheme; removal of penalty on solar power generator for shortfall in solar ₹33,453 crore from the Government of India. All erstwhile RE schemes
standard TBCB guidelines for Photovoltaic & Wind projects and power generation under Component-A etc. (including Rajiv Gandhi Grameen Vidyutikaran Yojana i.e., RGGVY)
India has demonstrated a firm commitment towards achieving the launch of Green Term Ahead Market to facilitate sale of Renewable were subsumed in DDUGJY and after March 31, 2022, the DDUGJY
ambitious energy transition goals announced by the Prime Minister Energy Power through exchanges. Revamped Distribution Sector Scheme (RDSS) scheme has been subsumed in RDSS. On closure, the total executed
at COP26. These goals include an ambitious target of 500 GW installed cost under the scheme has arrived at ₹45,942.74 crore.
As a step towards addressing the issue of mounting dues of the State The Central Government has approved a Revamped Distribution
renewable energy capacity by 2030 and increase the share of Green
power utilities, the Ministry of Power, (MoP) Government of India, Sector Scheme, a Reforms-based and Results-linked Scheme with
energy to 50% of total energy required by 2030. The government has Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)
has issued Electricity (Late Payment Surcharge and Related matters) an outlay of ₹3,03,758 crore over a period of five years from the
also pledged to achieve net-zero emissions by 2070, which reflects
Rules, 2022. This initiative works with the sole aim of financially financial year 2021-22 to financial year 2025-26 with the objective The Hon’ble Prime Minister of India launched the Pradhan Mantri Sahaj
its determination to promote sustainable development and reduce
strengthening the electricity suppliers and bringing financial to improve the quality, reliability and affordability of power supply Bijli Har Ghar Yojana (SAUBHAGYA) scheme on September 25, 2017
the country’s carbon footprint. A major focus was laid on capturing
discipline in the power sector. Furthermore, it will ensure that the end to consumers through a financially sustainable and operationally with the objective of achieving universal household electrification in
emerging energy transition trends - from Renewables to Hydrogen
consumer not only gets reliable and quality power, but additionally efficient distribution sector. The scheme aims to reduce the AT&C the country. REC was the nodal agency for SAUBHAGYA scheme.
and even Smart Metering. it alleviates the interest burden on account of late payment of power losses Pan-India levels of 12-15% and ACS-ARR gap to zero by
On India’s 75th Independence Day, Hon’ble Prime Minister Shri purchases dues by the State Utilities. REC was advised by the MoP 2024-25, by improving the operational efficiencies and financial To expedite and monitor the electrification process under
Narendra Modi introduced the concept of ‘Amrit Kaal’ which is his to extend its support to Discoms for timely payment of their dues sustainability of all DISCOMs/Power Departments excluding private SAUBHAGYA, a web portal was launched to monitor electrification
vision for a ‘New India’ by the 100th year of independence in 2047, under the new LPS rules. During the year, REC has disbursed financial sector DISCOMs. DISCOMs/Power Departments would be able to status across the country. A feature named SAMVAD was also
giving a statement of nation’s aspirations. The Union Budget 2023-24, assistance of approx. ₹16,177 crore to Discoms across states for access funds under the Scheme for Pre-paid Smart Metering, System provided on the portal to facilitate the general public to raise their
the first budget of Amrit Kaal, provides a roadmap for promoting clearing the outstanding dues. Metering and Distribution infrastructure works for loss reduction and queries and interact with officials of discoms, thus establishing
sustainable development through greener and futuristic (technology- modernization. transparency and accountability. A special vehicle, ‘Saubhagya Rath’,
National Green Hydrogen Mission
driven) methods. The objective is to lay the building blocks for the was deployed in villages/towns so that the public may approach
The Scheme provides for annual appraisal of the DISCOM
forthcoming 25 years of the Indian economy and bifurcate principal The National Green Hydrogen Mission was approved by the Union them to avail electricity connections under the scheme. SAUBHAGYA
performance against pre-defined and agreed upon performance
policies into 7 co-dependent departments - termed as “Saptrishis” Cabinet on January 4, 2022, with the intended objectives of making scheme has been completed successfully.
trajectories including AT&C losses, ACS-ARR gaps, infrastructure
or seven sages with green growth being one of them. The Union India a leading producer and supplier of Green Hydrogen in the upgrade performance, consumer services, hours of supply, Solar Parks Scheme
Budget 2023 carried forward the momentum in the power sector by world; Creating export opportunities for Green Hydrogen and its corporate governance, etc. DISCOMs have to score a minimum
announcing various measures as under: derivatives; Reduction in dependence on imported fossil fuels and To facilitate large scale grid-connected solar power projects, a scheme
of 60% of marks and clear a minimum bar in respect to certain
feedstock; development of indigenous manufacturing capabilities; for “Development of Solar Parks and Ultra Mega Solar Power Projects”
 In order to achieve the country’s climate targets, a slew of parameters in order to be eligible for funding against the Scheme
attracting investment and business opportunities for the industry; is under implementation with a target capacity of 40 GW capacity
measures for green growth chiefly fuelled by an outlay of ₹35,000 in that year. Implementation of the Scheme would lead to consumer
creating opportunities for employment and economic development; by March, 2024. Solar Parks provide solar power developers with a
crore, to achieve energy transition and net zero objectives; empowerment by way of prepaid smart metering, to be implemented
and supporting R&D projects. plug and play model, by facilitating necessary infrastructure like land,
in Public-Private-Partnership (PPP) mode and leveraging Artificial
 The National Green Hydrogen Mission has been allocated an The National Green Hydrogen Mission will help in development of Intelligence to analyze data generated through IT/OT (Information power evacuation facilities, road connectivity, water facility etc. along
outlay of ₹19,700 crore, which is expected to play a significant green hydrogen production capacity of at least 5 MMT per annum Technology and Operational Technology) devices including System with all statutory clearances. As on February 28, 2023, 57 Solar Parks
role in helping India achieve its annual production target of 5 with an associated renewable energy capacity addition of about 125 Meters, prepaid smart meters, to prepare system generated energy have been sanctioned with a cumulative capacity of 39.28 GW. Out of
MMT (million metric tonnes) of green hydrogen by 2030; GW in the country, with investment of over ₹8,00,000 crore and will accounting reports every month to enable DISCOMs to take informed these 57 Solar Parks, 9 parks are fully complete and additional 8 parks
60 61
are partially complete, with a cumulative capacity of 10.11 GW solar v. Social and Commercial Infrastructure – Education Institutions, SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE efficiency and financial strength. The performance of the Company
projects commissioned in these parks. Sports Infrastructure, Hospitals, Common infrastructure for in terms of MoU signed under the guidelines of the DPE, Government
REC is a leading non-banking financial company (NBFC) categorized
Industrial Parks and other parks with industrial activity such as Infrastructure Finance Company (IFC) by the RBI, servicing the of India for the financial year 2023 is likely to be excellent, subject
Rooftop Solar Programme Phase-II as food parks, textile parks, Special Economic Zones, tourism to final evaluation by DPE. For the financial year 2021-22 MoU rating
financing needs of entire power sector value chain.
facilities and agriculture markets, Terminal markets, Soil- of REC has been "Very Good", primarily due to a newly introduced
With an objective to achieve 40 GW of Rooftop Solar (RTS) capacity REC’s principal products are interest-bearing loans to state utilities,
testing laboratories, Cold Chain, Affordable Housing etc. parameter of stock price performance.
in the country, the Government of India launched Rooftop Solar private sector borrowers etc. Further, during the year, REC has actively
Programme Phase-II on March 8, 2019. The Programme envisaged Supportive macroeconomic factors and policy initiatives like started financing/exploring to Infrastructure and Logistics sector as Apart from above, Shri Vivek Kumar Dewangan, CMD, REC has been
installation of 4,000 MW of RTS capacity in the residential sector by the National Logistics Policy, PM Gati Shakti, Make-in-India and well. The Company does not have any separate reportable segment. conferred with the prestigious ‘The Most Promising Business Leaders
providing Central Financial Assistance and incentives to DISCOMs for Production Linked Incentive (PLI) Scheme are creating huge space for of Asia’ Award, at the 7th edition of the Economic Times Asian Business
During the financial year 2022-23, the Company has sanctioned
infrastructure investments. REC obtained the necessary permissions loans worth ₹2,68,460.54 crore. The loans sanctioned for the financial Leaders Conclave 2022-23, for his stellar leadership in scaling up the
achievement of additional RTS capacity in a year over and above the
year 2022-23 includes ₹34,529.33 crore towards generation projects, operational business matters in the power sector value chain, path-
installed capacity of the previous year. A provision of total central to finance the Infrastructure & Logistics sector which presents a
₹21,371.11 crore towards renewable energy projects, ₹1,22,050.50 breaking energy transition initiatives, remarkable achievement and
financial support of ₹11,814 crore, including service charges to the significant financing opportunity for REC over the long term.
crore towards T&D projects including the loans under Revolving contribution to the overall well-being of the economy.
implementing agencies, has been made under the programme,
OPPORTUNITIES AND STRENGTHS Bill Payment Facility and Late Payment Surcharge, ₹85,734.60 crore
which was initially scheduled for completion by 2022 but later the Environment, Social and Governance Risks
towards Infrastructure & Logistics projects and ₹4,775 crore towards
Programme has been extended till March 31, 2026. Opportunities other loans such as short-term, medium-term loans etc. The Board approved Environment, Social & Governance (ESG)
As on February 28, 2023, against the target capacity of 4000 MW During the financial year 2022-23, the Company has disbursed an Policy framework of company serves as a guiding document
• REC plays a key role in implementation of flagship Government for all ESG initiatives and activities undertaken by REC. It
for residential sector under Rooftop Solar Programme Ph-II, around amount of ₹96,846.30 crore, which includes ₹25,049.27 crore towards
of India schemes and financing India’s power sector; articulates the Company’s commitment to ESG by incorporating
3,377 MW capacity has been allocated to various state implementing generation projects, ₹12,984.89 crore towards renewable energy
agencies based on the demand received from them and an amount • Rising energy demand in a fast growing economy augurs well projects, ₹27,502.84 crore towards T&D projects, ₹1,453.29 crore environmental impact considerations in its operational, financial
for future business growth; towards Power Infrastructure projects and ₹29,621.37 crore towards and risk management linked decision-making. Further, to ensure
of ₹2,917.59 crore has been released to them under the Programme.
other loans including short term, RBPF etc. The disbursements also the financing of clean energy, suitable conditions related to
4.3 lakh beneficiaries have benefited under Rooftop Solar Programme • Significant investments are required as per the generation Environmental, Health, Safety and Social (EHSS) aspects, are being
included ₹234.64 crore of counter-part funding under DDUGJY
Phase-II. An aggregate 8.03 GW rooftop solar capacity is reported capacity expansion planning report by CEA. Installed added in the loan agreement/sanction.
(including DDG component) and SAUBHAGYA schemes of the
installed in the country as on February 28, 2023. generation capacity by end of financial year 2027 is projected to Government of India. With this, long term value creation is also ensured for internal and
be 610 GW requiring investments of 14.54 lakh Crore. In further external stakeholders including customers, employees, investors,
National Electricity Fund Apart from the above, the Company also disbursed total subsidy
period of five years, i.e. by financial year 2032 the generation of ₹1,065.56 crore received from the Government of India under regulators, business partners and community members.
The National Electricity Fund (NEF) was launched in financial year capacity is expected to be 900 GW which corresponds to DDUGJY scheme (including DDG component) and SAUBHAGYA Environment:
2012-13 with interest subsidy outlay of ₹8,466 crore, to promote additional fund requirement of `19.06 lakh crore; schemes of the Government of India
capital investment in distribution infrastructure for reducing REC aspires to play a key role in financing the green energy transition
• Counter-part funding in schemes like RDSS (~₹2 lakh crore); and OUTLOOK goals of the country whereby share of renewable capacity is targeted
distribution losses in the country with REC as the nodal agency. As
• Ministry of Power has permitted REC to lend to infrastructure & The power sector in India, is on course for a long period of high to be 50% by 2030. REC recorded higher business in renewables as
on March 31, 2023, interest subsidy of ₹1,475 crore has been released
logistics sector also subject to certain limits. This opens up growth and transformation which is visible in the increasing compared to previous year. Renewable sanctions were up by over
under NEF. 45% while disbursement was increased manifold. Going forward the
another large universe of financing avenues for REC. deployment of clean renewables. Comprehensive transmission
planning and execution to evacuate power from renewable-rich share of renewables is likely to expand faster, thus improving the share
Infrastructure Sector
Strengths regions to the rest of the nation is well in progress. Utility-scale of renewables in total loan portfolio of REC. Further, the Corporate
Robust infrastructure is critically linked to growth in the GDP of energy storage and pumped storage projects are likely to play Office building of REC in Gurugram named “REC World Headquarters”
• REC holds a strategic position, given REC’s role in financing an important role in enhancing the flexibility of the system. With is a GRIHA-5 rated green building with solar rooftop capacity of 964
any economy. While continuing to accord high priority to the
power sector & implementing policies and flagship programs Government of India, setting and pursuing the target of achieving kwp and many energy efficiency features. The building received
development of Infrastructure, Ministry of Finance on October award at the 9th GRIHA summit (Green Rating for Integrated Habitat
of the Government of India; 500 GW of renewable energy capacity by 2030, energy transition is
11, 2022, announced an “Updated Harmonized Master List of Assessment) under the category “Integrated Water and Energy
expected to drive significant investment in the sector. The global
Infrastructure Sub-sectors” by adding some large emerging sectors • REC continues to maintain a strong financial position, is well trend towards Electric Vehicles (EVs) and its fast adoption in India is Management”. Further, REC has taken steps to make the office free
and broadly categorizing them into 5 segments: capitalised with high asset quality, to meet future business likely to see an increased demand for electricity. The National Smart of single-use plastics. As an initiative to sensitise the employees
growth; Grid Mission, which aims to modernize the country’s power grid is towards environment issues, awareness lectures on Green Energy
i. Transport and Logistics – Roads and bridges, Ports, Shipyards,
expected to improve grid stability and reduce power losses. The and online quiz among REC employees on “Environment and Mission
Inland Waterways, Airports, Railways, Urban Public Transport, • REC has a diversified asset portfolio with no single borrower Life” were also organized.
government is also promoting the use of smart meters and digital
Logistics Infrastructure, Bulk Material Transportation with more than 10% asset portfolio; and technologies to improve the efficiency of the distribution network. Social:
pipelines; The government is promoting measures such as cost-reflective
• Strong relationship and network with stakeholders in Central
tariffs, improved collection efficiency, and reduction in AT&C losses REC periodically reviews and updates its policies in line with DPE
ii. Energy – Electricity Generation, Electricity Transmission, & State Government enables REC to access new strategic
to improve the financial health of distribution companies. As Indian guidelines to achieve non-discrimination and fair treatment amongst
Electricity Distribution, Oil/Gas/Liquified Natural Gas (LNG) initiatives.
economy continues to grow fast, with a growing population and the employees, career progression and employee benefits, employee
storage facility, Energy Storage Systems (ESS);
THREATS, RISKS AND CONCERNS current low level of per-capita electricity consumption, the future health and well-being, women safety etc. REC maintains an “employee
iii. Water and Sanitation – Solid Waste Management, Water outlook for investments in power sector is quite promising over the ethics and code of conduct” manual to promote integrity, ethics
treatment plants, Sewage collection, treatment and disposal • Competition from other banks and financial institutions in long term. and good conduct among all employees. A well laid out grievance
system, Irrigation (dams, channels, embankments, etc.), power, infrastructure and logistics sector may require lending redressal mechanism is put in place to resolve employee concerns if
MoU RATING AND AWARDS any. REC is mindful of the customer experience in service delivery and
Storm Water Drainage System; at fine rates; and
regularly take feedback from all its borrowers with a view to enhance
• Financial and operational health of the distribution utilities During the financial year 2022-23, REC has received various awards
iv. Communication – Telecommunication, Telecommunication the same. Besides providing loans, REC has played a key role in
continues to be an area of concern. and recognition including "Maharatna" status by the Department of
towers, Telecommunication & Telecom Services, Data Centers; and successful implementation of Government Schemes such as DDUGJY,
Public Enterprise, Government of India for the Issuer’s operational
62 63
SAUBHAGYA which have ensured 100% village electrification and 23 was ₹13,738.77 crore, which was 10.57% higher than last year The disbursement towards CSR projects is linked with the strategy. The Company manages its liquidity risk through a mix of
last mile connectivity resulting in lighting of every rural household. (₹12,424.90 crore). Net Profit for the financial year 2022-23 stood at achievement of pre-defined milestones and deliverables. During the strategies, including forward-looking resource mobilization based
Feedback reports suggest that these schemes, besides other things, ₹11,054.64 crore, which was 10.04% higher than last year (₹10,045.92 financial year 2022-23, the Company spent a total amount of ₹210.35 on projected disbursements and maturing obligations. Further, to
have improved rural prosperity and inclusiveness. Further, REC crore). The Net Worth as on March 31, 2023 stood at ₹57,679.67 crore, crore (including disbursements in ongoing projects, other expenses mitigate market risk, the Company has an Asset Liability Management
has also been nominated as the nodal agency for implementation which was 13.13% higher than last year (₹50,986.60 crore). and carry forward of excess spent of ₹0.40 crore from previous year). Committee (ALCO) with CMD, Whole-time Directors and Senior
of the Revamped Distribution Sector Scheme which aims at loss Officials as its members, which meets regularly for review. The
reduction, and improving operational efficiency of Discoms. REC has The Company gives utmost priority to timely realization of its dues RISK MANAGEMENT FRAMEWORK Company also has in place an Asset Liability Management Policy and
a well defined “Corporate Social Responsibility” policy to fulfill its towards principal, interest, etc. During the financial year 2022-23, Hedging Policy, as part of Comprehensive Risk Management Policy.
the Company recovered ₹82,910.87 crore, against the total sum of The Company has a comprehensive Risk Management Policy,
obligations as a socially responsible corporate. To mitigate the relevant ESG risks, the Company has formulated
₹83,138.84 crore due for recovery, including interest for Standard covering credit risk, operational risk, liquidity risk and market risk.
& implemented an ESG policy covering the focus areas inter alia
Governance: Assets (Stage I & II), thereby achieving a recovery rate of 99.73%. The Company has constituted a Risk Management Committee, the
including climate change strategy, corporate governance etc.
main functions of which are to identify and monitor various risks of
REC believes that high standards of corporate governance combined the organization and to suggest actions for mitigation of the same.
KEY FINANCIAL RATIOS STRATEGY
with ethical and transparent business processes leads to greater Further, the Company has appointed Chief Risk Officer (CRO) and
effectiveness and efficiency, and superior business outcomes. REC The details of changes in key financial ratios and specific to the Chief Compliance Officer (CCO), as per the requirement of RBI norms. While continuing to finance the power sector requirements in
is fully compliant with the prescribed disclosure requirements by Company, are given herein below:- generation, transmission and distribution segments, REC is poised
regulatory bodies and also voluntarily discloses data as per statutory The risks faced by REC have been categorized and are being monitored
to capitalize on the Indian Government’s focus on energy transition
requirements. In recognition of REC’s efforts in this direction, it was Particulars FY 2022-23 FY 2021-22 systematically. Credit risk is an inherent risk of the financing industry
and finance upcoming renewable energy projects such as solar,
awarded with the Golden Peacock Award for excellence in ‘Corporate Interest Coverage ratio (times) 1.58 1.56 and involves risk of loss arising from the diminution in credit
wind, biomass, hydro EV’s / charging infrastructure, manufacturers of
Governance’ by the Institute of Directors on November 10, 2022. quality of the borrower and the risk of the borrower defaulting on
Debt Equity ratio (times) 6.49 6.41 EVs; financing of equipment manufacturing for clean technologies,
REC also has in force, a “Whistle Blower Policy” which encourages its contractual repayments under a loan or an advance. Operational
Operating Profit Margin (%) 34.93 31.50 funding of solar parks, solar SEZ, solar pump-sets, energy storage
stakeholders to report any issues involving violation of its employee risk, on the other hand, arises from inadequate or failed internal
Net Profit Margin (%) 28.16 25.61 systems etc.
code of conduct/ethics, corruption etc. REC ensures security of processes, people and systems or external events. Liquidity risk is
Return on Net Worth (PAT/Average 20.35 21.28 the risk of potential inability to meet the liabilities as they become Further, during the year, Ministry of Power has permitted REC to
data and strictly follows the information security guidelines issued
Net Worth) (%) due; and the inability to fund increase in assets, manage unplanned lend to non-power Infrastructure and Logistics sector subject
from time to time by the Ministry of Electronics and Information
Technology. Gross Credit Impaired Assets 3.42 4.45 changes in the funding sources and to meet obligations when to annual sanction in Infrastructure not exceeding 1/3rd of total
(Stage-III) (%) required. Market risk is defined as the risk to the Company’s earnings sanctions including for power infrastructure and green energy
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY Net Credit Impaired Assets (Stage- 1.01 1.45 and capital due to changes in the interest rates or prices of securities, projects and subject to a ceiling of 30% of outstanding loan book.
III) (%) foreign exchange changes as well as volatilities of changes. ESG risk As a result, REC has actively started financing to sectors like Airports,
The Company maintains an adequate system of internal controls is the risk due to environmental, social and governance factors on Metro Rail, Roads & Highways, Green Hydrogen/Green Ammonia,
including suitable monitoring procedures to ensure accurate and There was no significant change in the key financial ratios for financial company’s operations, financial performance and management. Irrigation/Water resources, Multi-Modal Logistics Parks, Cold Chains,
timely financial reporting of various transactions, efficiency of year 2022-23 vis-à-vis the last financial year 2021-22. Railway Stations redevelopment, Ports, Healthcare Infrastructure
operations and compliance with statutory laws, regulations and In order to mitigate credit risk, the Company follows institutional
HUMAN RESOURCES / INDUSTRIAL RELATIONS etc. Necessary permissions in this regard are in place and projects
Company policies. Suitable delegation of powers and guidelines for appraisal and project appraisal processes, which include detailed
aggregating ₹85,735 crore were approved during the year. The
accounting have been issued for uniform compliance. REC also has appraisal methodology, identification of risks, suitable structuring
As on March 31, 2023, total manpower of the Company was 419 pipeline of approvals built during the later part of the financial year,
in place its ERP operations and e-office system, to ensure IT based and mitigation. The operational risks are measured and categorized
employees, which included 379 executives and 40 non-executives. will result in robust disbursement in the balance part of the year.
operations with minimum manual interventions. In order to ensure as ‘High’, ‘Moderate’ or ‘Low’, through a comprehensive risk register
The industrial relations scenario continued to be on a cordial and covering all functional areas, namely business, compliance, finance,
that adequate checks and balances are in place and internal control harmonious note. During the financial year 2022-23, there was no
systems are in order, regular and exhaustive internal audits of various human resource, information technology, legal, operational and
loss of man-days on account of industrial unrest.
divisions and offices are conducted by in-house Internal Audit
division and through external professional audit firms. Employee training and development continued to receive key
focus. During the year, 315 employees of the Company attended For and on behalf of the Board of Directors
Further, review audits of various Regional and State offices are also
conducted by the in-house Internal Audit division, for those offices various training programmes, workshops, webinars etc. during
where internal audit is being outsourced continuously for three the financial year 2022-23, achieving 1,136 training man-days.
years. The internal audit covers all the major areas of operations of Vivek Kumar Dewangan
In order to equip the employees professionally, 19 executives Chairman & Managing Director
the Company including identified critical/risk areas, as per the Annual were also deputed for training programmes abroad. (DIN: 01377212)
Internal Audit Programme. The Audit Committee periodically reviews
the significant findings of audits, as prescribed in the Companies Act, CSR INITIATIVES Place : Gurugram
2013 and in the SEBI (Listing Obligations & Disclosure Requirements) Date : August 11, 2023
REC’s Corporate Social Responsibility and Sustainable Development
Regulations, 2015.
initiatives are pursued with key focus on addressing community
Further, Company has a Board-approved Risk Based Internal Audit based, social and environmental concerns. The Company undertakes Cautionary note
(RBIA) framework which includes independent risk assessment of the its CSR activities through ‘REC Foundation’, a not-for-profit society,
operation / activities, identification of audit universe, development of Certain statements in “Management Discussion and Analysis” section may be forward looking and are stated as required by applicable laws and
registered under the Societies Registration Act, 1860.
risk matrix, preparation of annual RBIA Plan and execution of internal regulations. Many factors may affect the actual results, which could be different from what the management envisages in terms of future performance
audit as per the frequency defined in the said policy. During the financial year 2022-23, the Company sanctioned a total and outlook.
amount ₹190.20 crore towards various CSR initiatives in the fields of
FINANCIAL & OPERATIONAL PERFORMANCE safe drinking water and sanitation facilities, employment enhancing
The Company achieved impressive performance during the financial vocational skills, education, environmental sustainability, rural
year 2022-23. The operating income of the Company on a standalone development projects etc. The implementation of CSR projects is
basis was ₹39,208.06 crore, which was 0.19% higher than last year done in project mode with baseline survey, specific project period,
(₹39,132.49 crore). The Profit Before Tax for the financial year 2022- identified milestones, periodic monitoring and impact assessment.
64 65
ANNEXURE-II TO BOARD’S REPORT • To ensure transparency and integrity in communication and Board of REC vests with the President of India acting through the
to make available full, accurate and clear information to all Administrative Ministry i.e., MoP.
Report on Corporate Governance •
concerned;
To ensure accountability for performance and customer
The matter of appointment of remaining 1 (one) Independent
Director is under consideration of the Administrative Ministry. Once
REC Limited has been at the forefront of providing funding to 1. COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE service and to achieve excellence at all levels; and the requisite (one) number of Independent Director is appointed,
the power sector of the country for over five decades now. This the Company will be in compliance with the applicable statutory
Corporate Governance at REC is managing the business in an ethical • To provide corporate leadership of the highest standard for
longevity and sustained success are the result of several key factors, others to emulate. provisions.
including robust corporate governance practices, active stakeholder and responsible manner geared to sustainable value creation
participation, and a long-term vision for growth and development. for stakeholders within the prevalent regulatory framework. The As a Non-Banking Financial Company (NBFC), the Company has The Directors of REC are equipped with the necessary skills and
Further, Company has entered in new sector for funding to Company believes in adopting the best practices that are followed established its own “Internal Guidelines on Corporate Governance” knowledge to efficiently and effectively run the Company’s
infrastructure & logistics projects. REC strives to ensure that its in the area of Corporate Governance across the globe. The Company in accordance with the norms set by the Reserve Bank of India operations. They work together to offer the strategic direction and
has a strong legacy of fair, transparent and ethical governance (RBI). These guidelines codify the Company’s approach to corporate support needed to achieve the Company’s goals and objectives.
practices and policies align with the interests of society and promote
practices. The cardinal principles of independence, accountability, governance, outlining its philosophy, structure, and framework. The
the greater good. This approach is evident in the company’s focus Internal Guidelines on Corporate Governance can be accessed at The Board has adopted a Policy on, inter-alia, Diversity and Skills of
responsibility, transparency, credibility, sustainability and fair &
on responsible resource utilization, environmental sustainability, and https://recindia.nic.in/uploads/files/Final---Internal-Guidelines-on- the Board, on recommendation of the Nomination & Remuneration
timely disclosures etc., serve as the means for implementing the
community engagement. REC takes its role in the power sector and Corporate-Governance.pdf. Committee (NRC), which has been submitted to the MoP for
Company’s philosophy of Corporate Governance in true letter and
in society seriously, and strives to make a positive impact through suitable consideration in matters of nomination/appointment/
spirit. The Company’s systems, policies and frameworks are regularly 2. BOARD OF DIRECTORS
sound corporate governance practices, stakeholder engagement, reappointment of Directors in REC. The said policy is available at
reviewed and upgraded to meet the challenges of a dynamic
and a long-term vision for growth and development. https://recindia.nic.in/uploads/files/Amended---Policy-on-Board-
business environment. As per the Articles of Association of REC, the number of Directors on the Diversity--Other-matters-dt-150722.pdf.
REC strives to create value for all its stakeholders, including Board of the Company shall not be less than 3 (Three) and not be more
The Corporate Governance framework at REC is based on the
shareholders, non-convertible security holders, customers, vendors, than 15 (Fifteen). As on March 31, 2023, the Board of Directors of REC Additionally, following the RBI’s Master Directions and based on
following guiding principles: comprised of 9 (Nine) Directors, including the Chairman & Managing
employees, communities, and the general public. The company the recommendation of the NRC, the Board has implemented a
complies with all mandatory requirements for corporate governance  Compliance of law, rules and regulations in true letter and Director (CMD); Director (Finance); Director (Technical); a Government “Policy on ‘fit & proper’ criteria for Directors”. This policy outlines the
spirit; Nominee Director from the Administrative Ministry i.e., the Ministry internal process for assessing Directors’ qualifications, expertise,
as outlined by the Companies Act, 2013, (“the Act”), SEBI’s Listing
of Power (MoP), Government of India; a Nominee Director of Power track record, integrity, and other relevant factors to determine
Obligations and Disclosure Requirements Regulations, 2015 (“SEBI  Appropriate systems and practices to protect, promote and Finance Corporation Limited (PFC), which holds majority equity stake
LODR Regulations”), the Department of Public Enterprises’ Guidelines their suitability as a Director. The “fit & proper” criteria specified in
safeguard the interests of all its stakeholders; and in the Company; and 4 (Four) Part-time Non-Official Independent
on Corporate Governance for Central Public Sector Enterprises (“DPE the policy are checked during the appointment or reappointment
Directors, including a Woman Independent Director.
Guidelines”) and the Institute of Company Secretaries of India’s  Establishing a climate of trust and confidence among various of Directors and annually thereafter. The policy can be accessed at
Secretarial Standards (“Secretarial Standards”). Additionally, REC stakeholders by means of transparent and timely disclosure Being a Government Company within the meaning of Section 2(45) https://recindia.nic.in/uploads/files/Amended---Policy-on-Fit--
of all material information. of the Companies Act, 2013, the power to appoint Directors on the Proper-Criteria.pdf.
goes beyond these minimum requirements and meets most of the
non-mandatory guidelines set forth by SEBI. The above principles help in achieving the following objectives: (a) Composition of Board
A report regarding compliance of conditions of Corporate Governance • To protect and enhance shareholder value; The composition of the Board as on March 31, 2023 and other relevant information, is outlined below:
is provided below, followed by a Certificate on Corporate Governance
issued by the Statutory Auditors of the Company. • To protect the interest of all other stakeholders such as Sl. Name of the Director DIN Position in the Company No. of other Directorships held No. of Committee
customers, employees and society at large; no. Directorships in in other listed positions held in
Indian public entities, category other companiesa
limited companies of Directorship Chair- Member
person
Whole-time Directors (Executive Directors)
1 Shri Vivek Kumar 01377212 Chairman & Managing 1 - - -
Dewangan Director
(w.e.f. May 17, 2022)
2 Shri Ajoy Choudhury 06629871 Director (Finance) 1
3 Shri Vijay Kumar Singh 02772733 Director (Technical) 2 - - -
(w.e.f. July 15, 2022)
Part-time Directors (Non-Executive Directors)
4 Shri Piyush Singh 07492389 Government Nominee 2 NTPC Limited - -
Director (Nominee Director)
(w.e.f. Sept 14, 2022)
5 Smt. Parminder Chopra 08530587 Nominee Director of PFC 7 Power Finance Nil 2b
Corporation Limited
(Whole-time
Director)
PTC India Limited
(Nominee Director)
6 Dr. Gambheer Singh 02003319 Independent Director 1 - - -
7 Dr. Manoj Manohar Pande 09388430 Independent Director - - - -
8 Dr. Durgesh Nandini 09398540 Independent Director - - - -
9 Shri Narayanan Thirupathy 10063245 Independent Director - - - -
(w.e.f. March 6, 2023)
a. In line with Regulation 26 of SEBI LODR Regulations, only chairpersonship / membership in Audit Committee and Stakeholders Relationship
Committee in Indian public limited companies (other than REC) have been taken into consideration. Further, none of the Director is a member of
more than 10 (ten) such committees nor a Chairperson of more than 5 (five) such committees.
b. Smt. Parminder Chopra is a member of the Stakeholders Relationship and Shareholders’/Investors’ Grievance Committee of PFC and Audit
Committee of PTC India Limited.
REC was conferred ‘Golden Peacock Award 2022’ for excellence in Corporate Governance
66 67
(b) Changes in the composition of the Board during FY 2022-23 ensuring compliance with statutory provisions. The Company (iii) Information placed before the Board of Directors towards goodwill, brand equity or intellectual
operates with a systematic process for conducting board and property, if any.
1. Ministry of Power vide its Order dated May 10, 2022 read with The Board of Directors has complete and unrestricted
committee meetings. In order to ensure the full participation
resolution passed by the Board, appointed Shri Ravinder Singh access to all information within the company, surpassing 16. Significant labour problems, if any and their proposed
and presence of all directors, the meeting dates are agreed
Dhillon (DIN: 00278074), Chairman & Managing Director (CMD) the minimum information requirements outlined in the SEBI solutions. Any significant development in human
upon well in advance through consultation with all the
of Power Finance Corporation Limited, to look after the work of LODR regulations. The company goes above and beyond in resources / industrial relations front like signing
Directors. The agenda notes are sent to the directors within
CMD, REC Limited w.e.f. May 10, 2022 (F/N), in addition to his ensuring that the Board has a comprehensive and in-depth of wage agreement, implementation of voluntary
the time frame set by relevant statutory provisions, using
the then current post responsibilities for three months or until understanding of the information provided. retirement scheme etc., if any.
either electronic or physical methods based on the director’s
further orders, whichever is earlier. Accordingly, Shri Sudhir
preference. For added convenience and to promote a The information provided to the Board includes, inter-alia, 17. Sale of investments, subsidiaries, assets which are
Kumar Gangadhar Rahate (DIN: 05254178) ceased to be CMD
paperless environment, the company uses a secure platform the following: material in nature and not in normal course of
of the Company w.e.f. May 10, 2022.
to send the electronic agenda notes to the directors. business, if any.
1. Annual operating plans and budgets and any updates.
2. Further, in terms of communication dated May 13, 2022 of Additionally, any information that is deemed price-sensitive
18. Quarterly details of foreign exchange exposures and
Appointment Committee of the Cabinet (ACC), Ministry of is distributed separately before the meeting in accordance 2. Capital budgets and any updates.
the steps taken by management to limit the risks of
Personnel Public Grievances and Pensions, Department of with applicable legal provisions. 3. Proposals relating to raising of funds. adverse exchange rate movement, if material.
Personnel and Training (DoPT), Government of India read with
Resolutions, if required, are being passed through circulation 4. Proposals relating to sanction of financial assistance.
MoP Order dated May 18, 2022 and with resolution passed by 19. Non-compliance of any regulatory, statutory or listing
as required by business needs, and are recorded in the next
the Board, Shri Vivek Kumar Dewangan (DIN: 01377212) had requirements and shareholders service such as non-
board meeting. In cases of pressing business needs, meetings 5. Quarterly, half yearly and annual financial results of
assumed the charge of CMD of REC w.e.f. May 17, 2022. payment of dividend, etc., if applicable.
may be called on short notice, following the prescribed the Company.
3. Pursuant to MoP Order dated July 15, 2022 read with procedures. 20. Quarterly report on compliance of various applicable
6. Board’s Report alongwith its annexures.
resolution passed by the Board, Shri Vijay Kumar Singh (DIN: laws.
02772733) was appointed as Director (Technical) on the Board The inclusion of any item on the agenda for board or 7. Minutes of meetings of Audit Committee and other
committee meetings is determined through an established 21. Quarterly report on reconciliation of share capital
of REC Limited with effect from July 15, 2022 till the date of Committees of the Board.
internal process, and decided by the CMD. The agenda notes audit, corporate governance report as per SEBI LODR
his superannuation i.e., June 30, 2025, or until further orders, 8. Minutes of Board meetings of all subsidiary companies.
include an executive summary in a standard format, as well Regulations and status of investor grievances.
whichever is earlier. Further, vide order dated July 15, 2022,
MoP had conveyed approval of ex post facto entrustment of as detailed information about the proposal, including draft 9. The information on recruitment and remuneration of 22. Quarterly report on borrowings and redemption.
the additional charge towards the post of Director (Technical) resolution(s) to be approved. senior officers just below the Board level, including
23. Quarterly report on deployment of short-term surplus
to Shri Ajoy Choudhury, Director (Finance), from February 1, appointment or removal of Chief Financial Officer and
Board and Committee meetings are ordinarily held at funds.
2022 till a regular incumbent was appointed i.e., July 15, 2022. Company Secretary, if applicable.
the Registered/Corporate office in Delhi/Gurugram and
Further, MoP vide its letter dated August 10, 2023, rechristened 24. Quarterly report on loan portfolio quality and
video conferencing technology is used extensively in 10. Show cause, demand, prosecution notices and
of the existing post of Director (Technical) of the Company as diversification.
order to facilitate participation. Whenever required, senior penalty notices which are materially important, if any.
Director (Projects). management officials are invited to attend and make 25. Quarterly report on cost of funds.
11. Fatal or serious accidents, dangerous occurrences,
4. Shri Piyush Singh, (DIN: 07492389) Joint Secretary, MoP, was presentations or offer additional insights on any agenda
any material effluent or pollution problems, if any. 26. Quarterly report on ECL based credit risk
appointed as the Government Nominee Director on the items. A comprehensive system of follow-up in the form of
categorization of loan book.
Board of REC w.e.f. September 14, 2022, pursuant to MoP an Action Taken Report (ATR) is employed after each meeting, 12. Any material default in financial obligations to and by
office order of even date read with resolution passed by the which chronicles the steps taken based on earlier decisions the Company or substantial non-payment for goods 27. Half yearly report on long term investments.
Board, vice Shri Vishal Kapoor (DIN 08700132). and discussions by the Board or Committees. The Company sold by the Company, if any.
28. Half yearly report on compliance of Whistle Blower
strictly adheres to the Secretarial Standards issued by the 13. Issues which involve possible public or product Policy.
5. Shri Narayanan Thirupathy (DIN: 10063245) was appointed
Institute of Company Secretaries of India (ICSI). liability claims of substantial nature, including any
as Part-time Non-official (Independent) Director on the Board 29. Half yearly report on compliance of Fair Practices
w.e.f. March 6, 2023, pursuant to MoP Order dated March 3, (ii) Details of Board meetings held during the year judgment or order, which may have passed strictures
Code.
2023 read with resolution passed by the Board, for a period of on the conduct of the Company or taken an adverse
During the financial year 2022-23, the Board of Directors met view regarding another enterprise that can have 30. Periodic reports under the Delegation of Powers.
three years from the date of MoP Order or until further orders.
12 (Twelve) times on these dates: negative implications on the Company, if any.
31. Action Taken Report on earlier decisions /
(c) Changes in the composition of the Board after
Q1 Q2 Q3 Q4 14. Details of any joint venture or collaboration deliberations of the Board.
March 31, 2023
agreement, formation of subsidiaries, strategic
27-Apr-2022 4-Aug-2022 27-Oct-2022 30-Jan-2023 32. Any other information, as may be required to be
Pursuant to MoP letter dated July 11, 2023 read with alliances, etc., if any.
presented to the Board.
resolution passed by the Board Shri Manoj Sharma, Director 13-May-2022 15-Sep-2022 5-Dec-2022 9-Mar-2023
15. Transactions that involve substantial payment
(Commercial) of PFC has been appointed as Nominee Director 28-May-2022 - 30-Dec-2022 30-Mar-2023
of PFC on the Board of REC in place of Smt. Parminder Chopra
w.e.f. July 11, 2023. 30-Jun-2022 - - -
The minimum and maximum gap between any two Board

(d) Other provisions as to Board and its Committees
meetings held during the financial year was 14 (Fourteen)
(i) Board procedures days and 41 (Forty-one) days, respectively. Further, gap
The Company follows a structured approach of holding between the first Board meeting of financial year 2022-23
Board and Committee meetings, with the aim of maximizing from the last Board meeting of financial year 2021-22, was 36
participation, promoting a paperless environment, and (Thirty-Six) days.
68 69
(iv) Details of Directors’ attendance at Board meetings and Annual General Meeting (AGM) held during the financial year 2022-23:
Sl. Name of the Director Date of meeting and attendance thereat Date of meeting and attendance thereat Total number of meetings Atten-
no. dance at
27-Apr- 13-May- 28-May- 30-Jun- 4-Aug- 15-Sep- 27-Oct- 5- Dec- 30-Dec- 30-Jan- 9-Mar- 30-Mar- Held Attended % of atten- 53rd AGM
2022 2022 2022 2022 2022 2022 2022 2022 2022 2023 2023 2023 during by dance held on
tenure Director 16-Sep-
22
1 Shri Vivek Kumar Dewangan N.A. N.A. 10 10 100
CMD w.e.f. 17-May-2022
2 Shri Ravinder Singh Dhillon N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1 1 100 N.A.
CMD from 10-May-2022 to 16-May-2022
3 Shri Sudhir Kumar Gangadhar Rahate N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 1 1 100 N.A.
CMD upto 9-May-2022
4 Shri Ajoy Choudhury 12 12 100

Director (Finance)
5 Shri Vijay Kumar Singh N.A. N.A. N.A. N.A. 8 8 100

Director (Technical) w.e.f. 15-July-2022*
6 Shri Piyush Singh N.A. N.A. N.A. N.A. N.A. LoA LoA 7 5 71.40
Government Nominee Director w.e.f.
14-Sept-2022
7 Shri Vishal Kapoor N.A. N.A. N.A. N.A. N.A. N.A. N.A. 5 5 100 N.A.
Government Nominee Director ceased w.e.f.
14-Sept-2022
8 Smt. Parminder Chopra LoA LoA 12 10 83.33
PFC Nominee Director
9 Dr. Gambheer Singh 12 12 100

10 Dr. Manoj Manohar Pande 12 12 100

11 Dr. Durgesh Nandini 12 12 100

12 Shri Narayanan Thirupathy N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 2 2 100 N.A.
Independent Director w.e.f. 6-Mar-2023
Present in person Present through video conferencing N.A. Not Applicable LoA Leave of Absence
*MoP vide its letter dated August 10, 2023, rechristened the existing post of Director (Technical) of the Company as Director (Projects).
(v) Retirement by rotation at the ensuing 54th AGM (vii) Inter-se relationship between Directors All Independent Directors of REC are registered in the Independent Directors of REC was held on December 31,
database for Independent Directors maintained by the 2022, which was attended by all the then Independent
In accordance with the provisions of the Companies Act, 2013 There is no inter-se relationship between the Directors of the Indian Institute of Corporate Affairs. Further, all Independent Directors of the Company.
and Article 91 (iv) of the Articles of Association of the Company, Company. Directors have submitted the requisite declaration(s), that
Shri Vijay Kumar Singh, (DIN: 02772733), Director (Projects) they meet the criteria of independence specified under (xi) Key skills, expertise, competencies and attributes of the
shall retire by rotation at the ensuing 54th AGM of the Company (viii) Share and convertible instruments held by Non-Executive Section 149(6) of the Companies Act, 2013 and Regulation Board
and being eligible, offers himself for re-appointment. The Directors 16(1)(b) of SEBI LODR Regulations.
brief resume of Shri Vijay Kumar Singh, including his expertise In view of the Board, the Independent Directors of the The Board of Directors at REC is comprised of highly qualified
in various functional areas and other relevant information, is As on March 31, 2023, none of the Non-Executive Directors individuals who possess the necessary skills, expertise, and
Company have strong moral character and the necessary
appearing in the Notice of the 54th AGM forming part of this held any shares or convertible instruments in the Company. skills and experience to make valuable contributions to the competence to effectively manage the company and make
Annual Report. company, and to be free from any ties or connections to the valuable contributions to the Board and its committees. The
(ix) Information related to Independent Directors
management. Board members are dedicated to ensure that REC adheres to
(vi) Resume of Directors
The tenure of Independent Directors appointed during the the highest standards of corporate governance. In light of the
Brief resume of directors seeking appointment or (x) Separate meeting of Independent Directors
year was compliant with the regulations outlined in the complexities of REC’s business and the broader power sector,
reappointment at the Annual General Meeting is appended Companies Act, 2013. During the financial year 2022-23, none In accordance with the provisions of SEBI LODR Regulations the Board has identified key skills, expertise, competencies,
to the Notice calling the Annual General Meeting. of the Independent Directors resigned. and the Companies Act, 2013, a separate meeting of the and attributes that are critical for its effective functioning:
70 71
Area of skill or expertise Description 6. Committee for Investment/Deployment of Surplus Companies (Meetings of Board and its Powers) Rules,
Financial Management Planning, organizing, directing and controlling the financial activities which include mobilization and Funds 2014, as amended from time to time;
utilization of funds, financial accounting and management control systems, financial planning, liquidity 7. Asset Liability Management Committee b) To comply with the requirements relating to Audit
& fund management, working capital management, treasury & forex management, tax planning and
8. IT Strategy Committee Committee as envisaged in SEBI (Listing Obligations
liaising with financial institutions, etc.
9. Sub-committee to ensure compliance of GoI & Disclosure Requirements) Regulations, 2015, as
Power Sector Domain Expertise A significant background in technology and in-depth insight into the various elements of power
directives on ‘Make in India’ amended from time to time;
generation, transmission & distribution, renewable energy sector and the challenges/aspects/nuances
of power sector in India and abroad, knowledge of how to anticipate technological trends, generate c) To comply with the Guidelines on Corporate
The minutes of meetings of all Committees are placed before
disruptive innovation and extend or create new business models. Governance for Central Public Sector Enterprises,
the Board for information and noting, in terms of Article 105
Project Appraisal Systematic and comprehensive review of the technical parameters, social impact, economic, 2010, as notified by the DPE, as amended from time
environmental, financial and other such aspects of a project, to determine if it meets its objectives. of the Articles of Association of the Company and applicable
statutory requirements. Detailed terms of reference of each to time; and
Corporate Planning & Strategy Management activities that are used to set priorities, focus energy and resources, strengthen
operations and ensure that employees and other stakeholders are working towards common goals Committee, including details of meetings, attendance etc., d) To comply with any other applicable provisions, as
by establishing agreement on intended outcomes/results; and assess and adjust the organization’s are appearing in the subsequent paras. amended from time to time, relating to the Audit
direction in response to a changing environment. 3.1 Audit Committee Committee.
Risk Management Forecasting and evaluation of operational risk, credit risk, market risk, interest rate risk, liquidity risk,
foreign currency risk and other financial risks, together with the identification of procedures to avoid or The Company has constituted an Audit Committee The Audit Committee carries out its role as per its terms of
minimize their impact. Identifying any potential threats that may occur during the investment/financing in accordance with the provisions of Section 177 of reference and reviews the information prescribed under the
process and mitigation of the same. Cybersecurity and mitigation of risks related to IT environment. the Companies Act, 2013, Regulation 18 of SEBI LODR applicable statutory provisions.
Leadership Extended leadership experience for establishing a clear vision, providing guidance, knowledge and Regulations and DPE Guidelines on Corporate Governance. During the year under review, the Audit Committee met 6
methods to realize that vision, involving setting and achieving organizational goals and taking actions The terms of reference of the Audit Committee are as under: (six) times. The composition of Audit Committee as on March
for achievement of such goals.
a) To comply with the requirements in accordance with 31, 2023 and details of attendance at its meetings held during
Board Practices & Governance Service on a public listed company or holding responsible positions in Central/State Government
Section 177 of the Companies Act, 2013 read with the the year, were as under
departments, banks, reputed institutes of learning. The Company Board to develop insights about
maintaining board and management accountability, protecting interests of the shareholders and
observing appropriate governance practices. Sl. Name of the Director Position in the Date of meeting and attandance thereat Total number of meetings
no. Committee 13-May- 30-Jun- 4-Aug- 26-Oct- 27-Oct- 30-Jan- 9-Mar- Held Attend- % of
Business Development Experience in developing strategies to increase business and market share, build brand awareness and
enhance corporate reputation by creating long-term value for borrowers/investors, markets and all 2022 2022 2022 2022 2022 2023 2023 during ed by atten-
other stakeholders. (Adjourned) tenure Director dance
Environment & Social Experience in the fields of climate conservation, climate change, global warming, reduction of carbon 1 Dr. Gambheer Singh Chairperson
6 6 100
footprint, ecological sensitivity, agriculture, sustainability, green energy, renewable resources, energy Independent Director
conservation, energy efficiency, public welfare, healthcare, education, social impact and social 2 Dr. Manoj Manohar Pande Member
N.A. N.A. 4 4 100
development projects etc. Independent Director upto 29-Dec-2022
In the table set out below, the specific areas of expertise of individual Board members as on March 31, 2023 and the Board members appointed 3 Dr. Durgesh Nandini Member
6 6 100
subsequently, have been highlighted: Independent Director
4 Smt. Parminder Chopra Member
KEY QUALIFICATIONS OF THE BOARD PFC Nominee Director
6 6 100
Name of the Director Area of expertise
Financial Power Project Corporate Risk Leader- Board Business Environment Present in person Present through video conferencing N.A. Not Applicable
Manage- sector appraisal Planning & Manage- ship practices & Development & Social
ment domain Strategy ment Governance
expertise The maximum gap between any two meetings of the Audit The Company has constituted a Nomination & Remuneration
Shri Vivek Kumar          Committee was not more than 120 days. Committee (NRC) in accordance with the provisions of Section
Dewangan 178 of the Companies Act, 2013, Regulation 19 of SEBI LODR
Shri Ajoy Choudhury          The quorum for meetings of Audit Committee is two members Regulations and DPE Guidelines on Corporate Governance.
Shri Vijay Kumar Singh          or one third of the total number of members, whichever is The terms of reference of the NRC, to the extent applicable to
Shri Piyush Singh          greater, with at least two Independent Directors present. REC, are as under:
Smt. Parminder Chopra          Further, Director (Finance), Head of Internal Audit function
a. To comply with the requirements in accordance with
Shri Manoj Sharma*          and representatives of Statutory Auditors of the Company
Section 178 of the Companies Act, 2013 read with the
Dr. Gambheer Singh         are also invited to the meetings of the Audit Committee. The
Companies (Meetings of Board and its Powers) Rules,
Dr. Manoj Manohar         Company Secretary acts as Secretary to the Committee.
Pande 2014, as amended from time to time;
Dr. Durgesh Nandini        All the members of the Audit Committee are financially b. To comply with the requirements relating to
Shri Narayanan        literate and at least one member of the Audit Committee Nomination and Remuneration Committee as
Thirupathy had accounting or related financial management expertise. envisaged in SEBI (Listing Obligations and Disclosure
*Appointed w.e.f. July 11, 2023 in place of Smt. Parminder Chopra. Further, the then Chairperson of Audit Committee was Requirements) Regulations, 2015, as amended from
The absence of tick mark against a member’s name, does not necessarily mean that the said member does not possess the corresponding present at the last AGM held on September 16, 2022, to time to time; and
skill or expertise.
answer the queries of shareholders.
c. To comply with the Guidelines on Corporate
3. COMMITTEES OF THE BOARD OF DIRECTORS As on March 31, 2023, the Board had the following
Committees:- 3.2 Nomination & Remuneration Committee Governance for Central Public Sector Enterprises,
The Board of Directors functions either as full Board, or through 2010 including to decide the quantum of annual
various Committees constituted to oversee specific areas of 1. Audit Committee REC being a Central Public Sector Enterprise (CPSE), as per bonus, variable pay and policy for ESOP scheme,
business and governance. Each Committee is guided by its 2. Nomination & Remuneration Committee the Articles of Association of the Company, the appointment, pension scheme, etc. within the prescribed limits
terms of reference approved by the Board, which define its 3. Stakeholders Relationship Committee tenure and remuneration of CMD, Whole-time Directors and across Whole-time Directors, executive and non-
composition, scope and powers. The Committees meet regularly other Directors are decided by the President of India and unionized supervisors, as notified by the DPE and as
and as per requirement, to make informed decisions under their 4. Risk Management Committee
communicated by the Administrative Ministry i.e., MoP. amended from time to time.
assigned area of work, within the authority delegated to them. 5. Corporate Social Responsibility Committee
72 73
During the year under review, the NRC met 10 (ten) times. The composition of NRC as on March 31, 2023 and details of attendance at its meetings 6. Other benefits included in Form 16 exclude the reimbursement(s) towards uniform, entertainment, electricity, water and attendant charges and exempt
held during the year, were as under: medical expenses/reimbursement.
7. In the financial year 2022-23, pension contribution was deposited in NPS account. Hence, the Employer Pension Contribution is part of salary u/s 17(1) of
Sl. Name of the Director Position Date of meeting and attandance thereat Total number of meetings the Income Tax Act, 1961 in Form 16.
no. in the 27- 13 - 28- 30- 4- 15- 26- 05- 30- 9- Held Attended % of 8. Total remuneration includes allowances exempt u/s 10 of the Income Tax Act, 1961 and excludes employer’s contribution into REC Gratuity Fund, based
Committee Apr- May - May - Jun- Aug- Sep- Oct- Dec- Jan- Mar - during by atten- on actuarial valuation.
2022 2022 2022 2022 2022 2022 2022 2022 2023 2023 tenure Director dance 9. The Company has not given any stock options.
1 Dr. Manoj Manohar Pande Chairperson 10. The appointment of Directors and terms of appointment including remuneration, notice period, severance fees etc., if any, are decided by President of India.
10 10 100
2 Dr. Gambheer Singh Member Remuneration of Non-Executive Directors thereof, which is well within the limits prescribed under the
10 10 100
Companies Act, 2013 and Rules made thereunder.
3 Dr. Durgesh Nandini Member The Non-Executive Directors are paid sitting fee of ₹40,000/-
10 10 100
Independent Director During the financial year 2022-23, the details of remuneration
4 Shri Narayanan Member for attending each meeting of the Board of Directors and
paid to Non-Executive Directors towards sitting fee (excluding
Thirupathy w.e.f. 9-Mar- N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. ₹30,000/- for attending each meeting of the Committee(s)
Independent Director 2023
GST), were as under: -
(Amount in ₹)
Present in person Present through video conferencing N.A. Not Applicable
Sl. no. Name of Non-Executive Director Sitting fee Total
The quorum for meetings of NRC is two members, including the Company is evaluated vis-à-vis the MoU parameters, as per
Board meetings Committee meetings
the Chairperson of the Committee. Further, Director (Finance), the framework prescribed under MoU Guidelines issued by DPE.
Director (Projects) and Executive Director (HR) / Head of Division Being a CPSE, the remuneration of functional directors, key 1 Dr. Gambheer Singh 4,80,000 8,40,000 13,20,000
(HR), are also standing invitees to the meetings of NRC. The managerial personnel and other employees of the Company Independent Director
Company Secretary acts as the Secretary to the Committee. including senior management personnel, is determined as
2 Dr. Manoj Manohar Pande 4,80,000 9,00,000 13,80,000
per the extant guidelines on pay, perquisites, allowances etc.
The Ministry of Corporate Affairs (MCA) vide notification dated Independent Director
issued by the Department of Public Enterprises (DPE) and/
June 5, 2015, had exempted Government companies from the or Government of India from time to time. Non-executive
requirement related to formulation of criteria for determining 3 Dr. Durgesh Nandini 4,80,000 5,70,000 10,50,000
Directors (including Independent Directors) are eligible to Independent Director
qualifications, positive attributes, independence and annual receive sitting fees for attending the meetings of Board or
evaluation of Directors and policy relating to remuneration Committees thereof, which is within the limits prescribed 4 Shri Narayanan Thirupathy 80,000 - 80,000
of Directors. Further, MCA vide notification dated July 5, under the Companies Act, 2013. The Government Nominee Independent Director
2017, had prescribed that the provisions relating to review Director is not entitled to receive any sitting fees from the
Company, as per the norms of Government of India. On Total 15,20,000 23,10,000 38,30,000
of performance of Independent Directors and evaluation
recommendation of NRC, the Board has adopted a Policy on,
mechanism, as prescribed in Schedule IV of the Companies Note: The Nominee Director of PFC is entitled to receive sitting fee for attending the Board or Committee meetings of REC, which is paid to PFC. However, Smt. Parminder
inter-alia, Policy on diversity and skills of the Board, criteria for
Act, 2013, are also not applicable to Government companies. appointing senior management personnel and remuneration Chopra, Nominee Director of PFC has convevyed that no sitting fee is to be paid in connection with Board or Committees meetings of REC attended by her.
The performance evaluation of Non-Executive Directors of the to Directors, KMPs and other employees, which is available
Company was carried out by the Administrative Ministry, as at https://recindia.nic.in/uploads/files/Amended---Policy-on- Apart from the above, the Non-Executive Directors do not Committee (SRC), in terms of the provisions of Section 178 of the
per its internal guidelines. Moreover, the Company enters into Board-Diversity--Other-matters-dt-150722.pdf. have any material pecuniary relationship or transaction Companies Act, 2013, Regulation 20 of SEBI LODR Regulations
Memorandum of Understanding (MoU) for the financial year with the Company, except to the extent of payment / and other applicable laws. The SRC looks specifically into the
Details regarding remuneration paid to Functional Directors
with its holding company, PFC, the key parameters of which and Key Managerial Personnel (KMPs) of the Company reimbursement towards air tickets, hotel accommodation, redressal of requests, complaints or grievances from various
are finalized in consultation with the MoP. The performance of during the financial year 2022-23, are given below: hiring of vehicle, out-of-pocket expenses, local conveyance security holders including shareholders and debenture-
etc., if applicable, in respect of attending the meetings of the holders, such as non-receipt of dividend credit / warrants, non-
(Amount in ₹) receipt of interest on debentures etc.
Board or Committees thereof.
Sl. Name & Designation Salary & Perfor- Perquisites Other Leave En- CPF Con- Pension Total
no. Allowances mance Benefits cashment tribution Fund Con- 3.3 Stakeholders Relationship Committee During the year under review, the SRC met 2 (two) times.
Linked included in tribution The composition of SRC as on March 31, 2023 and details of
Incentive Form 16 The Company has constituted a Stakeholders Relationship
1 Shri Sudhir Kumar - - - - - - - -
attendance at its meetings held during the year, were as under:
Gangadhar Rahate1
CMD upto May 9, 2022
2 Shri Ravinder Singh Dhillon2 - - - - - - - - Sl. Name of the Director Position in the Date of meeting and Total number of meetings
CMD upto May 16, 2022 no. Committee attendance thereat
3 Shri Vivek Kumar Dewangan3 29,19,661 - - 56,338 - - - 29,75,999
CMD w.e.f. May 17, 2022 13-May-2022 26-Oct-2022 Held during Attended by % of
4 Shri Ajoy Choudhury 55,88,585 29,93,799 87,382 58,767 - 4,60,564 2,68,664 94,57,761 tenure Director attendance
Director (Finance)
5 Shri V. K. Singh4 40,24,283 13,35,448 90,332 41,428 - 3,32,657 1,94,051 60,18,199 1. Dr. Durgesh Nandini Chairperson 2 2 100
Director (Technical) w.e.f. July
15, 2022 Independent Director
6 Shri J.S. Amitabh 56,25,627 20,88,208 1,572 2,643 - 4,59,030 2,67,771 84,44,851
Executive Director & 2. Dr. Manoj Manohar Pande Member 2 2 100
Company Secretary Independent Director upto 29-Dec-2022
Notes:
3. Shri Ajoy Choudhury Member 2 2 100
1. Shri Sudhir Kumar Gangadhar Rahate, was holding additional charge of CMD during February 22, 2022 to May 9, 2022, while serving as Additional
Secretary in the Ministry of Power, Government of India. No remuneration was paid to him by REC. Director (Finance)
2. Shri Ravinder Singh Dhillon, CMD of PFC Limited was appointed as CMD of REC in addition to his current post responsibilities during May 10, 2022 to May 4. Shri Vijay Kumar Singh Member N.A. 1 1 100
16, 2022. No remuneration was paid to him by REC.
Director (Technical) w.e.f. 15-July-2022
3. Shri Vivek Kumar Dewangan, was appointed as CMD of REC w.e.f. May 17, 2022 (F/N). Accordingly, salary details are from May 17, 2022 to March 31, 2023.
4. Shri. V. K. Singh was appointed as Director (Technical) of REC w.e.f. July 15, 2022. Accordingly salary details are from July 15, 2022 to March 31, 2023.
Present in person N.A. Not Applicable
5. Performance Linked Incentive is paid in line with the guidelines issued in this regard by the DPE.
74 75
Shri J. S. Amitabh, Executive Director & Company Secretary, acts of shareholders’ / investors’ requests & grievances for the The Company has appointed a Chief Risk Officer (CRO) as c) To recommend the amount of expenditure to be incurred
as the Secretary to the Committee. He is also the Compliance financial year 2022-23 was as under: prescribed by RBI. The CRO also acts as the convener to RMC. on the activities referred to in clause (a);
Officer of the Company in terms of SEBI LODR Regulations. d) To recommend / review CSR projects / programs /
Particulars of requests / Equity Listed Total The quorum for meetings of Risk Management Committee is
The quorum for meetings of SRC is two members including three members, including the Chairperson of the Committee. proposals, falling within the purview of Schedule VII of
grievances Shares debt
the Chairperson of the Committee. Further, representatives of Further, Executive Director (Finance-Resources), Executive the Companies Act, 2013;
securities
the Registrar & Transfer Agents appointed by the Company Pending as on 1-Apr-2022 3 0 3 Director (Private Sector Project Management), Executive e) To institute a transparent monitoring mechanism for
for various securities including shares, debentures, bonds Director (State Operations) and Executive Director (Asset implementation of the CSR projects / programmes /
Received during the 2,464 1,217 3,681
etc., are Invitees to the meetings of the SRC. The then financial year Liability Management) Division are standing invitees to the activities undertaken by the Company;
Chairperson of the Committee, was present at the last AGM meetings of the Risk Management Committee. f ) To assist the Board of Directors to formulate strategies on
Disposed of during the 2,461 1,217 3,678
of the Company held on September 16, 2022, to answer the CSR initiatives of the Company;
financial year 3.5 Corporate Social Responsibility Committee
queries of security holders.
Remaining unresolved as 6* 0 6* g) To approve the content of annual report on CSR activities
Requests & grievances of shareholders / debenture-holders on 31-Mar-2023 As per the provisions of Section 135 of the Companies Act, as per performa given in the Rules, inter-alia covering
To promptly redress the requests & grievances of shareholders, * The said 6 requests / grievances remaining unresolved as on March 31, 2013 and Rules made thereunder and Guidelines on Corporate responsibility statement that the implementation and
debenture-holders etc., the Company has established a 2023, have since been resolved. Social Responsibility for Central Public Sector Enterprises monitoring of CSR Policy, is in compliance with CSR
three-tier mechanism i.e., support service from the respective (CPSEs) issued by the Department of Public Enterprises, the objectives and Policy of the Company;
3.4 Risk Management Committee Board of Directors of the Company has constituted a ‘Corporate
Registrars, in-house investor cell and direct supervision by
Social Responsibility Committee’ (CSR Committee), the terms h) To periodically submit the reports to the Board of
the SRC, which has resulted in timely resolution of all requests The Risk Management Committee (RMC) has been
of reference of which are as under: Directors for their information, consideration and
& grievances. constituted in line with the provisions of Regulation 21 of
necessary directions; and
NSE and BSE have a web-based complaints redressal system SEBI LODR Regulations, to manage the integrated risk of the a) To formulate and recommend to the Board, a Corporate
organization. The terms of reference of RMC are as under: i) To comply with the other requirements on Corporate
and a separate platform of SEBI namely SCORES (SEBI Social Responsibility Policy which shall indicate the
activities to be undertaken by the Company as specified Social Responsibility Policy, as amended from time to time.
Complaints Redressal System), through which investors can a. To manage the integrated risk;
lodge a complaint against a company for their grievances. b. To identify various risks likely to arise, evaluate overall in Schedule VII of the Companies Act, 2013; During the year under review, the CSR Committee met 10
The status of every complaint can be viewed online and if risks faced by the Company including liquidity risk, b) To monitor the Corporate Social Responsibility Policy of (ten) times. The composition of CSR Committee as on March
required, the investor can send reminder for the complaints. monitor and review the risk management plan, the Company from time to time; 31, 2023 and details of attendance at its meetings held during
Through this system, the investors are also able to check the policies and practices followed by the Company from the year, were as under:
status of the complaints, such as with whom the complaint is time to time;
pending, upon whom the responsibility has been fixed and for c. To oversee the mitigation of various risks and to Sl. Name of the Director Position in the Date of meeting and attendance thereat Total number of meetings
how much time the complaint is pending. An investor, who is perform all other risk management functions, which no. Committee 27- 13- 4- 15- 26- 5- 30- 30- 9- 28- Held Attend- % of
not familiar with SCORES or NSE and BSE web based system shall also cover cyber security; and Apr- May- Aug- Sep- Oct- Dec Dec- Jan- Mar- Mar- during ed by atten-
22 22 22 22 22 - 22 22 23 23 23 tenure Director dance
or does not have access to SCORES, can lodge a complaint in d. To perform any other function, as may be required for
physical form or alternatively can send an e-mail to the R&TA of compliance of applicable statutory provisions issued 1 Dr. Manoj Manohar Pande Chairperson 10 10 100
the Company and Company for redressal of compliant. by RBI, SEBI, MCA and/or any other agencies, from Independent Director
The Company and its R&TA attends to all investor requests time to time. 2 Dr. Gambheer Singh Member 7 7 100
N.A. N.A. N.A.
Independent Director upto 29-Dec-2022
& grievances promptly and on an expeditious basis, to the During the financial year 2022-23, the Risk Management
satisfaction of the investors. A quarterly update on the Committee met 3 (three) times. The composition of Risk 3 Shri Ajoy Choudhury Member 10 10 100
status of investor requests & grievances is filed with the Management Committee as on March 31, 2023 and details Director (Finance)
Stock Exchanges and also placed before the Board. Pursuant of attendance at its meetings held during the financial year 4 Shri Vijay Kumar Singh Member
N.A. N.A.
8 8 100
to Regulation 13(3) of SEBI LODR Regulations, the status 2022-23, were as under: Director (Technical) w.e.f. 15-July-2022

Sl. Name of the Director Position in the Date of meeting and attendance Total number of meetings
no. Committee thereat The quorum for meetings of CSR Committee is two members, 3.7 Asset Liability Management Committee (ALCO)
Held Attended % of at-
28-Jun- 16-Dec- 28-Mar- during by Direc- tendance including the Chairperson of the Committee. The Company Secretary
In pursuance to RBI guidelines on Asset Liability Management
2022 2022 2023 tenure tor acts as the Secretary to the Committee. The Corporate Social
(ALM) system for NBFCs, the Company has constituted
1 Shri Vivek Kumar Dewangan Chairperson N.A. 2 2 100 Responsibility & Sustainability Policy of the Company is available at
an Asset Liability Management Committee (ALCO). The
Chairman & Managing Director w.e.f. 05-Dec-22 https://recindia.nic.in/uploads/files/REC-CSR-Policy-07-12-2021.pdf.
ALCO monitors risks related to liquidity, interest rates and
2 Dr. Gambheer Singh Chairperson N.A. 2 2 100 3.6 Committee for Investment / Deployment of Surplus Funds currency rates with the help of ALM support group, which
Independent Director upto 04-Dec-22 provides various reports on liquidity gap analysis, interest
Member The Committee for Investment / Deployment of Surplus rate sensitivity analysis and foreign currency movements
till 29-Dec-22 Funds has been constituted for the purpose of approving etc. ALCO meets every quarter to review the position of
3 Dr. Manoj Manohar Pande Member 3 3 100 investment / deployment of short-term surplus funds of above risks. ALCO is headed by the CMD, with members
Independent Director ₹1,000 crore and above in single instance in Certificate of including Director (Finance), Director (Projects) and
Deposits or ₹2,000 crore and above in Mutual Funds and Fixed Executive Directors (EDs) or Chief General Managers (CGMs)
4 Shri Ajoy Choudhury Member 3 3 100
Deposits at any time. The Committee comprises of the CMD from the finance and operating divisions of the Company.
Director (Finance)
as Chairperson; and Director (Finance) and Director (Projects)
5 Shri V. K. Singh Member N.A. 2 2 100 as members. The quorum for meetings of the said Committee During the year under review, the ALCO met 4 (four) times.
Director (Technical) w.e.f. 15-Jul-22 is two members, including CMD. However, no meeting of the The composition of ALCO as on March 31, 2023 and details of
said Committee was held during the financial year 2022-23. attendance at its meetings held during the year, were as under:
76 77
Sl. Name/Designation of the Position in the Meetings and attendance Total number of meetings 4.2 Share Transfer Committee 4.3 Bonus Issue Committee
no. Director / Member Committee of ALCO
The Share Transfer Committee considers requests for The Board in its meeting held on June 30, 2022 had constituted a
9-Jun- 13-Sep- 16-Dec- 21- Mar- Held during Attended % of
2022 2022 2022 2023 tenure by Director/ attendance
transmission, transposition, splitting and consolidation of shares Bonus Issue Committee for deciding/approving the allotment of
Member exceeding 500 equity shares per individual in each case under bonus shares and deal with related matters thereto. The Bonus
1 Shri Vivek Kumar Dewangan Chairperson the physical segment and for issue of duplicate share certificates.
4 4 100 shares were allotted to shareholders on August 20, 2022 and
Chairman & Managing Director w.e.f. 17-May-2022 As on March 31, 2023, the Share Transfer Committee comprised
of senior officials of the Company, namely, Shri J.S. Amitabh admitted for trading on stock exchanges on August 26, 2022.
2 Shri Ajoy Choudhury Member
4 4 100 (Executive Director & Company Secretary) and Shri Daljeet Singh
Director (Finance) During the year under review, the Bonus Committee met 1
3 Shri Vijay Kumar Singh Member Khatri (Executive Director - Finance), as members. However, no
N.A. 3 3 100 (one) time. The composition of Bonus Committee and details of
Director (Technical) w.e.f. 15-July-2022 meeting of the said Committee was held during the financial
year 2022-23. attendance at its meetings held during the year, were as under:
4 ED (Resources) Member
4 4 100
5 ED / CGM Member Sl. Name / Designation of the Position in the Date of meeting and Total number of meetings
4 4 100 no. Director / Member Committee attendance thereat
(PSPM / State Operations)
6 ED / CGM (ALM) Member 20-Aug-2022 Held during Attended by % of
4 4 100 tenure of the Member attendance
Member
Present in person N.A. Not Applicable 1 Shri Vivek Kumar Dewangan Chairperson 1 1 100
The quorum for meetings of ALCO is three members, including (ITSC). The ITSC comprises of an Independent Director as Chairman & Managing Director
CMD and the Director (Finance). The ED/CGM (ALM) acts as the Chairperson; and Chief Information Officer (CIO), Chief 2 Shri Ajoy Choudhury Member 1 1 100
the convener of ALCO. Other senior officials of the Company Technology Officer (CTO)/ISMS Officer and one external Director (Finance)
are also invited to meetings of ALCO, as per requirement. Technical Expert as its members. The role of ITSC includes 3 Dr. Gambheer Singh Member 1 1 100
The CMD may authorize a Whole-time Director to chair the monitoring the methods to determine the IT resources Independent Director
meeting of ALCO in his absence. The CMD may also authorize needed to achieve strategic goals and to provide high-level
a backup executive for each of the members and convener of direction for sourcing and use of IT resources & approving IT Present in person
ALCO, in case of need. strategy and policy documents.
3.8 IT Strategy Committee The Company Secretary acts as the Secretary to the (8) Beawar Transmission Limited
During the year under review, the ITSC met 1 (one) time. Committee.
The composition of ITSC as on March 31, 2023 and details of (9) Luhri Power Transmission Limited
In compliance of RBI’s Master Directions for NBFCs, the
Board of Directors has constituted an IT Strategy Committee attendance at its meetings held during the year, were as under: The work assigned to Bonus Committee was completed on (10) Khavda II- D Transmission Limited*
successful allotment and admission for trading on stock (11) Meerut Shamli Power Transmission Limited
Sl. Name / Designation of Position in the Date of meeting and Total number of meetings exchanges. Henceforth, the Board in its meeting held on
no. the Director / Member Committee attendance thereat December 30, 2022 dissolved the Bonus Committee. (12) NERES XVI Power Transmission Limited
16-Sep-2022 Held during Attended by % of (13) KPS1 Transmission Limited**
tenure of the Member attendance 5. SUBSIDIARY COMPANIES
*Striking off the name of project specific SPV i.e. Khavda II-D Transmission
Member REC has a wholly owned subsidiary, namely, REC Power Limited is under process as the related inter-state Transmission Project is
1 Shri Narayanan Thirupathy Chairperson Development and Consultancy Limited (RECPDCL) (formerly de-notified by Central Electricity Authority, Ministry of Power.
w.e.f. 9-Mar-2023
N.A. N.A. N.A. N.A. known as REC Power Distribution Company Limited). RECPDCL
Independent Director **KPS1 Transmission Limited was transferred on April 20, 2023.
2 Dr. Gambheer Singh Chairperson inter-alia acts as the “Bid Process Coordinator” for selection of
Independent Director upto 8-Mar-2023 Transmission Service Provider through Tariff Based Competitive Further, after March 31, 2023 till the date of this report RECPDCL
1 1 100 has incorporated the following project specific SPVs :
Member Bidding (TBCB) process, for independent inter-state and intra-
w.e.f. 9-Mar-2023 state transmission project assigned by the Ministry of Power
(1) Jalpura Khurja Power Transmission Limited
3 Executive Director (IT) (CIO) Member and State Governments from time to time. In order to initiate
1 1 100 (2) Rajasthan Part - I Power Transmission Limited
development of each independent inter-state / intra-state
4 HOD (IT)/ISMS Officer/CTO Member transmission project, RECPDCL incorporates project specific (3) Dhule Power Transmission Limited
1 1 100
Special Purpose Vehicle (SPVs), as its wholly owned subsidiary. (4) Ishanagar Power Transmission Limited
5 External Technical Expert Member
1 1 100
Such wholly owned subsidiaries (project specific SPVs) are (5) Karera Power Transmission Limited
also wholly owned subsidiaries of REC, pursuant to Section (6) Shontong Power Transmission Limited
Present in person N.A. Not Applicable
2(87) of the Companies Act, 2013. After selection of the
successful bidder in accordance with the TBCB guidelines, (7) Pachora Power Transmission Limited
3.9 Sub-committee to ensure compliance of GoI directives on look into specific matters, details of which are as follow:
‘Make in India’ such subsidiaries are transferred to the successful bidder The minutes of Board meetings of all subsidiary companies
4.1 Perpetual Debt Instrument Committee along with all assets & liabilities. are placed before the Board of Directors of REC. The
The Board of REC has constituted Sub-committee to ensure In line with the Board-approved “Perpetual Debt Instrument financial statements of unlisted subsidiary companies, in
As on March 31, 2023, RECPDCL had the following project
compliance of GoI directives on ‘Make in India’, comprising Policy”, the Company has raised Perpetual Debt Instruments to particular the investments made by them, are reviewed
specific SPVs / wholly owned subsidiaries, which were also
of the Government Nominee Director as Chairperson and the tune of ₹558.40 crore in January, 2021, which are unsecured, wholly-owned subsidiaries of REC: by the Audit Committee of REC. The audited financial
Director (Finance) and Nominee Director of PFC as its members, subordinated, non-convertible instruments. In compliance statements and related information of RECPDCL and other
of the said policy, a Committee comprising of CMD, Director (1) Chandil Transmission Limited subsidiaries, is available on the website of the Company at
to inter-alia, scrutiny/review the tender notices, as and when
(Finance) and Director (Projects) has been constituted, to decide (2) Dumka Transmission Limited https://recindia.nic.in/recpdcl-annual-accounts.
being floated by REC or its subsidiaries, valuing ₹250 crore or upon the payment/non-payment of coupon on the Perpetual (3) Mandar Transmission Limited REC does not have any “material subsidiary” as defined
above. Further, one (1) meeting of the said Sub-committee was Debt Instruments after taking into account different factors. The
held on September 8, 2022 during the financial year 2022-23. quorum for meetings of the Committee is at least two members. (4) Koderma Transmission Limited under the SEBI LODR Regulations. Further, the Company has
(5) Bidar Transmission Limited devised a Policy on Materiality of Subsidiaries as required
4. OTHER COMMITTEES During the financial year 2022-23, one (1) meeting of the under the said Regulations. The said policy is available at
Perpetual Debt Instrument Committee was held on December (6) Ramgarh II Transmission Limited
https://recindia.nic.in/uploads/files/cs-policy-determining-material-
In addition to the abovementioned Committees, the Board of 6, 2022, which was attended by CMD, Director (Finance) and (7) Sikar Khetri Transmission Limited subsidiaries-dt230719.pdf.
Directors has also constituted some additional Committees to Director (Technical).
78 79
6. GENERAL BODY MEETINGS 7. SERVICE OF DOCUMENTS THROUGH ELECTRONIC MEANS by ICSI and DPE Guidelines on Corporate Governance,
The details of the last three AGMs of the Company and special resolutions passed thereat, are as follows:- as amended from time to time, except with respect
REC has been effecting electronic delivery of documents such
to Regulation 17(1) of SEBI (LODR) Regulations related
as Notice of AGM, Annual Report etc. for more than of decade
AGM no. Financial year Date Time Venue Special Resolution passed to requirement of at least 50% Independent Directors
now, to those shareholders whose email IDs are registered
51st 2019-20 25-Sep-2020 11:00 A.M. Through VC/ 1. To increase the overall Borrowing Limit of the Company. in composition of Board, as the composition of the
with the respective Depository Participants (DPs) or Registrar
OAVM 2. To create mortgage and/or charge on all or any of the Board of Directors of the Company as on March 31,
movable and/or immovable properties of the Company. & Share Transfer Agent (R&TA). The intimation of Dividend
2023, was falling short by one Independent Director.
3. Approval for Private Placement of Securities. Payment (interim or final) is also being sent electronically to
52nd 2020-21 24-Sep-2021 11:00 A.M. Through VC/ 1. Approval for private placement of securities. those shareholders, whose email IDs are registered. Due to such non-compliances, NSE and BSE have
OAVM 2. Alteration of Objects Clause of Memorandum of imposed a total fine of ₹43,07,000/- including GST
In line with the circulars issued by MCA and SEBI, Notice of
Association of the Company. (₹21,53,500/- each), for all the four quarters of FY
the 54th AGM of the Company along with Annual Report for
53rd 2021-22 16-Sep-2022 11:00 A.M. Through VC/ 1. To increase the overall Borrowing Limit of the Company 2022-23. Prior to this, NSE and BSE had also imposed
the financial year 2022-23, would be sent by e-mail to all
OAVM 2. To create mortgage and/or charge on all or any of the total fine of ₹1,82,14,480/- including GST (₹97,07,240/-
those shareholders and holders of non-convertible securities,
movable and/or immovable properties of the Company. each including GST) from the quarter ended on March
3. Approval for private placement of securities. whose e-mail IDs are registered with the Company.
31, 2020 to quarter ended on March 31, 2022.
Note: In terms of the General Circular no. 20/2020 dated May 5, 2020, General Circular no. 02/2021 dated January 13, 2021 and General Circular no. 02/22 The Company has published advertisements in newspapers,
dated May 5, 2022 issued by the Ministry of Corporate Affairs in light of Covid-19 pandemic, the 51st, 52nd and 53rd AGMs of REC were held through Video It is pertinent to mention that the power to appoint
to encourage the shareholders holding shares in physical and
Conferencing (VC) / Other Audio-Visual Means (OAVM), and the deemed venue of meeting was registered office of the Company. Directors on the Board of the Company vests with the
electronic form to register or update their email IDs, for receiving
President of India, acting through the Administrative
Pursuant to the Ministry of Corporate Affairs (MCA) Circular Further, in light of the said MCA General Circular read with Annual Report of the Company for financial year 2022-23. Ministry i.e. Ministry of Power, Government of India.
no. 10/22 dated December 28, 2022 read along with other SEBI Circular dated January 5, 2023, the Annual Report of Further, the Company has also sent SMSes to the shareholders The Company has been requesting the appointing
relevant circular(s), pursuant to which the ensuing 54th AGM the Company for financial year 2022-23 is being sent in soft whose mobile numbers were registered with the concerned authority, i.e. MoP, for appointment of requisite
of REC will be held on Wednesday, September 6, 2023 through copy to those shareholders and holders of non-convertible Depository, for updation of e-mail IDs. Despite the above efforts, number of Independent Directors and the Company
VC/OAVM mode. The Company will provide the facility of those shareholders who have still not registered or updated
securities of the Company, whose email addresses are has no role in the appointment of Directors or
electronic participation and e-voting for the said AGM to the their e-mail IDs, may follow the process mentioned in the Notice
registered with the Company / Registrars / Depositories / maintaining the Composition of its Board. In view
shareholders, relevant details of which are appearing in the of 54th AGM, for registration of e-mail ID and procuring the User
Notice of the 54th AGM forming part of this Annual Report. Depository Participants. of the same, the Company has requested the Stock
ID and Password for e-voting at the ensuing AGM. Exchanges to waive off the fines imposed on the
6.1 Postal Ballot 8. SECRETARIAL AUDIT Company. BSE has already waived off the fine
imposed on the Company for the quarters ended on
Details of postal ballot conducted during the financial year 2022-23 are as follows: M/s Hemant Singh & Associates, Company Secretaries, Delhi September and December 2020.
have conducted the Secretarial Audit of the Company for the
Financial Brief description of Type of Votes Votes Procedure for postal ballot Person who 2. As required under statutory provisions, all returns,
year the resolution Resolution cast in cast conducted the financial year 2022-23 and have submitted their report to the
favour against postal ballot Company. A copy of the Secretarial Audit Report is annexed reports and disclosures were filed with the
(%) (%) exercise stock exchanges and other authorities within the
Date of Cut-off Newspaper Remote e-voting Result Date
in this Annual Report for information of the stakeholders.
Postal date in which period & E-voting Further, observations of the Secretarial Auditor and stipulated time.
Ballot advertisement Agency
Notice was printed Management’s Reply thereto, are appearing in the Board’s 3. The Company has complied with the requirements of
2021-22 Appointment of Ordinary 85.95% 14.05% March 25, March 23, Business Tuesday, March Friday, April Report forming part of this Annual Report. Regulation 17 to 27 of SEBI LODR Regulations relating
(March - Smt. Parminder Chopra 2022 2022 Standard 29, 2022 (0900 29, 2022
April, 2022) (DIN: 08530587) as newspaper hours) India 9. RELATED PARTY TRANSACTIONS to Board, Committees and Corporate Governance,
Nominee Director of PFC (English and Standard as amended from time to time; and maintaining and
Appointment of Ordinary 93.70% 6.30% Hindi editions) Time (IST) to
on Monday, Wednesday, April The Company has formulated a Policy on “Materiality of updating the website of the Company as required
Shri Sudhir Kumar
Gangadhar Rahate (DIN: March 28, 2022 27, 2022 (1700 Related Party Transactions and Dealing with Related Party under Regulation 46 of SEBI LODR Regulations, except
05254178) as CMD hours) (IST)
E-voting agency: Transactions”, as per the latest provisions of SEBI LODR where the Company did not have requisite number of
NSDL Regulations. In line with the said Policy, all related party Independent Directors, as detailed in point no. 1 above.
2022-23 Appointment of Ordinary 93.68% 6.32% July 8, 2022 July 5, 2022 Business Monday, July Tuesday,
(July - Shri Vivek Kumar Standard 11, 2022 (0900 August 9, transactions are approved by the Audit Committee and /
August, Dewangan newspaper hours) India 2022 or the Board of Directors or Shareholders, as the case may The Company has also complied with the disclosure
2022) (DIN: 01377212) as CMD. (English and Standard Time CS Hemant be. The transactions with related parties are included in requirements under Corporate Governance Report as
Hindi editions) (IST) to Tuesday, Kumar Singh
on Saturday, August 9, 2022 (FCS no. 6033, the Notes to Accounts as per the applicable provisions of per Part C of Schedule V of the SEBI LODR Regulations.
To capitalize the Ordinary 98.39% 1.61% July 9, 2022 (0900 hours), Certificate of Further, in compliance of Regulation 46 and Regulation
reserves and issue both days the Companies Act, 2013. A status report on Related Party
Practice no.
Bonus shares to the inclusive 6370), from M/s Transactions is periodically put up for information of the 62 of SEBI LODR Regulations, the Company has inter-alia,
shareholders of the
E-voting
Hemant Singh Audit Committee and the Board of Directors. The Policy is disclosed the relevant information on its website at
Company. & Associates,
agency: NSDL Company available at https://recindia.nic.in/uploads/files/RPT-Policy- https://recindia.nic.in/disclosures-under-regulation-46-of-sebi.
Secretaries
of-REC-dated-150722.pdf. Further, the particulars of Related 4. The Company has a Board-approved Risk Management
2022-23 Alteration of Objects Special 99.99% 0.01% September September Business Wednesday, Thursday,
(September Clause of Memorandum 26, 2022 20, 2022 Standard September October 27, Party Transactions are given in form AOC-2 annexed to the Policy, which covers Hedging Policy that provides a
- October, of Association of the newspaper 28, 2022 (0900 2022 Boards’ Report.
2022) Company. (English and hours) India framework for the management of foreign currency
Hindi editions) Standard exchange risk, involving exchange rate movements
on Tuesday, Time (IST) 10. DISCLOSURES
September 27, to Thursday, among currencies that may adversely impact the value
Appointment of Ordinary 85.77% 14.23% 2022 October 27, 1. There were no instances of non-compliance related to of foreign currency denominated assets, liabilities
Shri Piyush Singh 2022 (1700
(DIN: 07492389) as hours) (IST) the Capital Markets during the last three years. For the and off-balance sheet arrangements, through the
Government Nominee financial year ended on March 31, 2023, the Company use of various hedging techniques. Appropriate
Director. E-voting
agency: NSDL has complied with all requirements of SEBI (LODR) disclosures regarding the foreign currency risks are
Regulations, the Companies Act, 2013 and rules made made in the Notes to Accounts, forming part of the
The results of Postal Ballot were displayed on the website and at the registered and corporate office(s) of the Company and communicated to Stock Exchanges, Depositories and
Registrar and Share Transfer Agents within the stipulated timelines. More details with respect to this postal ballot process are appearing at https://recindia.nic.in/postalballot. thereunder, applicable Secretarial Standards issued Audited Financial Statements. The nature of business
80 81
of the Company is not such, as may give rise to any 13. The Balance Sheet, Statement of Profit & Loss, and performance of the Company, their role & during the year under review. Further, there was no
commodity price risk. Statement of Changes in Equity and Cash Flow responsibilities as Independent Directors and other variation in use of issue proceeds of private placement
Statement for the financial year 2022-23 have been relevant information from time to time. During the of bonds in the financial year 2022-23.
5. The Company has laid down the procedure to inform prepared as per the Accounting Standards specified financial year 2022-23, the Company conducted 4
the Board about risk assessment and mitigation. under Section 133 of the Companies Act, 2013 read (four) such training programmes for its Independent 22. The domestic debt instruments of REC continued
The Board of Directors of the Company reviews the with the Companies (Indian Accounting Standards) Directors. In addition to the same, the Company also to enjoy “AAA” rating, the highest rating assigned
procedures to ensure that the integrated risks are Rules, 2015 (“Ind AS”), as amended, and other provided them with necessary documents, reports, by CRISIL, CARE, India Ratings & Research and ICRA,
managed through a properly defined framework. accounting principles generally accepted in India. internal policies etc., to familiarize them with the credit rating agencies throughout the financial year
Further, a Risk Management Committee of the Board Company’s procedures and practices. 2022-23. The Company also enjoys international credit
is also in place. 14. There are no audit qualifications by the Statutory rating of “Baa3” and “BBB-” from international credit
Auditors in their report pertaining to financial year Further, with the help of presentations at the Board rating agencies Moody’s and FITCH, respectively,
6. To indemnify the Directors and Officers, the Company 2022-23. Further, the Company has informed the Stock & Committee meetings, regular interactions with
has obtained a ‘Director’s and Officer’s (D&O) Liability throughout the financial year 2022-23. There is no
Exchanges that the Statutory Auditors have furnished Directors, senior management personnel and other
Insurance Policy’, which comprehensively covers revision in the ratings assigned to REC during the
Audit Report on Standalone and Consolidated officials of the Company, efforts are made to provide
the liabilities that may arise against Directors and financial year 2022-23.
Financial Results with unmodified opinion, in line all relevant information to the Independent Directors.
Officers of the Company. The insurance policy covers with the provision of the SEBI LODR Regulations. 23. On an annual basis, the Company obtains from each
The details of familiarization programmes conducted for
the Board of Directors of REC including Independent Director, inter-alia, the details of Board and Committee
15. The Company has not issued any Stock Options / Independent Directors of the Company are available at
Directors, Company Secretary, other Key Managerial positions occupied by them in other companies and
ESOPs during the financial year 2022-23. https://recindia.nic.in/uploads/files/Familriztn-progrm-
Personnel and all Manager and above level Officials changes therein, if any. Further, M/s Hemant Singh
for-indpndt-dircetor-dt300423.pdf.
of the Company. 16. Pursuant to the DPE Guidelines on Corporate & Associates, Practicing Company Secretaries, have
Governance, quarterly compliance report is being Further, as per the requirement of DPE Guidelines on provided a certificate confirming that none of the
7. There were no materially significant transactions
submitted to the Ministry of Power, through DPE, Corporate Governance, the Company has formulated Directors on the Board of the Company is debarred
with related parties i.e., Promoters, Directors or
Management, conflicting with the Company’s within the stipulated time. The details of submission a Policy for Training of Board Members. Based on their or disqualified from being appointed or continuing
interest. Further, the Independent Directors does not of the compliance report to DPE during the financial requirement, the Board members attended various as Director of the Company by SEBI, Ministry of
year 2022-23 were as under: seminars, conferences and training programmes etc. Corporate Affairs or any other statutory authority.
hold any equity shares of the Company.
from time to time. Copy of the said certificate is placed at Annexure-A to
8. The Company has not entered into any material, Report for Quarter Date of submission of this report.
financial or commercial transactions with the ended report 20. The Company has adopted all mandatory items
Director(s) or the Management or their relatives June 30, 2022 July 13, 2022 (except for having requisite number of Independent 24. To oversee specific operational areas, the Board of
or the companies and firms, etc., in which they are September 30, 2022 October 11, 2022 Directors on the Board); and also some of the non- Directors of the Company has constituted various
either directly or through their relatives interested as mandatory items on Corporate Governance, as Board-level Committees and delegated certain
December 31, 2022 January 5, 2023
Directors and/or Partners. prescribed under SEBI LODR Regulations, status of functions to these Committees. The respective
March 31, 2023 April 12, 2023 Committee(s) focus on their assigned areas and make
which is as under:
9. All members of senior management have made informed decisions and wherever required, make
Further, the Report containing Annual Score a) The Board: The Company is headed by an
disclosures to the Board relating to all material, recommendations for further consideration of the
(consolidated score of four quarters) was submitted to Executive Chairman;
financial and commercial transactions, where they Board of Directors. During the financial year 2022-23,
DPE on May 16, 2023, within the prescribed timeline.
have personal interest that may have a potential b) Shareholder Rights: The Company is making there was no instance where the Board of Directors
conflict with the interest of the Company at large (e.g., The Company has also submitted to the Stock did not accept the recommendation given by any
all relevant information available to the
dealing in Company shares, commercial dealings with Exchanges, quarterly compliance reports on Board-level Committee of the Company.
shareholders / investors in a timely manner, to
bodies which have shareholding of management and Corporate Governance under Regulation 27(2)(a) of
enable them to be sufficiently informed of the 11. COMPLIANCE WITH APPLICABLE LAWS
their relatives etc.) and there was no such instance of SEBI LODR Regulations, for all the quarters of financial
year 2022-23 within the stipulated time. major decisions of the Company;
conflict for financial year 2022-23. The Company has a robust system in place for monitoring
17. In line with the provisions of the Sexual Harassment c) Modified opinion in audit report: There are the compliance with applicable laws and related statutory
10. During the financial year 2022-23, the Company and
of Women at Workplace (Prevention, Prohibition no audit qualifications / modified opinion and procedural compliances. The Board of Directors of the
its subsidiaries did not provide any loans or advances
& Redressal) Act, 2013, the disclosure regarding pertaining to financial year 2022-23. It is Company periodically reviews the status of statutory, policy
in the nature of loans to firms & companies in which
complaints under the said Act during the financial always the Company’s endeavour to maintain and related procedural compliances, in order to ensure
the Directors are interested.
year 2022-23, is as under: unqualified financial statements; proper compliance of all laws applicable to the Company.
11. The administrative and office expenses for the
financial year 2022-23 have increased to ₹122.69 crore Sl. Particulars Number of d) Separate posts of Chairman and MD or CEO: 12. CODE OF BUSINESS CONDUCT AND ETHICS FOR BOARD
as compared to ₹115.31 crore during the previous no. complaints Being a Government Company, the role of CEO is MEMBERS AND SENIOR MANAGEMENT
financial year, which is a minor variation in line with 1. Number of complaints filed Nil performed in REC by the Chairman & Managing
The Company has a “Code of Business Conduct and Ethics for
normal increase in business activities of the Company. during the financial year Director and the role of CFO is performed by
Board Members and Senior Management”, which is applicable
Administrative and office expenses as a percentage 2. Number of complaints Nil Director (Finance). Accordingly, there are no
to all Directors, Key Managerial Personnel and Senior
of total expenses for the financial year 2022-23 were disposed of during the separate posts of Chairman and CEO;
Management Personnel of the Company. The said Code is
0.48% (previous year 0.43%); and as a percentage of financial year
e) Reporting of Internal Auditor: The Head of aligned with the Company’s mission / vision and objectives
financial expenses for the financial year 2022-23 were 3. Number of complaints Nil Internal Audit function of the Company directly and aims at enhancing ethical and transparent process in
0.52% (previous year 0.52%). pending as on the end of reports to the Audit Committee and is invited managing the affairs of the Company. The Code is available at
the financial year
12. The Company has not incurred any expenditure to the meetings of the Audit Committee. https://recindia.nic.in/uploads/files/Code_Business_Conduct_Ethics.pdf.
which is not for the purpose of the business. Further, 18. During the financial year 2022-23 and in the last three
years, the Company has not received any Presidential 21. Details of utilization of funds raised through preferential Based on the affirmations received from all Board members
no expense was incurred which was personal in allotment or qualified institutions placement as
Directives. and Senior Management Personnel, a declaration by the
nature and was incurred for the Board of Directors specified under Regulation 32(7A) and Regulation Chairman and Managing Director of the Company regarding
and Senior Management. 19. The Company familiarizes its Independent Directors 52(7) of SEBI LODR Regulations was not applicable compliance of said Code is as under:
about the nature of business & operations, strategy
82 83
Declaration under Code of Business Conduct and Ethics for Board Members and Senior Management of REC and all entities in the network firm / network entity of https://recindia.nic.in/disclosures-under-regulation-46-of-sebi,
which the Statutory Auditors are a part, are as follows: under the Investor section. Further, financial results of the
All Board Members and Senior Management have affirmed compliance with the ‘Code of Business Conduct and Ethics for Board Company are published in national newspapers like Economic
Members and Senior Management’ of the Company for the financial year ended March 31, 2023. (₹ in crore) Times (English & Hindi), Mint (English), Hindustan (Hindi) etc.
Sd/- Sl. Particulars FY2022-23 FY2021-22 The Company has designated telephone numbers and
Place : Gurugram Vivek Kumar Dewangan no. e-mail IDs for addressing the queries of its shareholders
Date : June 8, 2023 Chairman & Managing Director A. Fee paid to Statutory Auditor: and bondholders. Such details can be accessed at
DIN: 01377212 https://recindia.nic.in/investors-contact.
(i) As Auditor 0.58 0.58
13. CODE OF CONDUCT FOR REGULATING, MONITORING AND and prevention of fraud, reporting of any fraud that (ii) For Taxation matters 0.15 0.15 18. CEO/CFO CERTIFICATION
REPORTING TRADING BY DESIGNATED PERSONS AND is detected or suspected and fair dealing of matters (iii) For Company law matters/ 0.35 0.33 In terms of Regulation 17(8) of the SEBI LODR Regulations, a
THEIR IMMEDIATE RELATIVES AND FOR FAIR DISCLOSURE pertaining to fraud. The said policy is available at limited review fees Certificate on financial reporting and internal controls to the
https://recindia.nic.in/uploads/files/Revised-Fraud-Prevention- Board, duly signed by the Chairman and Managing Director
The Company has a “Code of Conduct for Regulating, Policy-310122.pdf. (iv) For other services 0.25 0.32
and Director (Finance) of the Company, was placed before the
Monitoring and Reporting Trading by Designated Persons (v) For reimbursement of expenses 0.11 0.03 Board in its meeting held on May 17, 2023, along with the
and their Immediate Relatives and for Fair Disclosure”, framed The Policy covers the following:
Sub-total 1.44 1.41 Annual Audited Financial Statements of the Company for the
with an aim that the Designated Persons and their immediate i. To ensure that management is aware of its financial year ended on March 31, 2023. A copy of the said
relatives, as defined in the said Code, do not derive any B. Non-recoverable tax credit 0.11 0.12
responsibilities for detection and prevention of fraud certificate is enclosed at Annexure-B to this report.
benefit or assist others to derive any benefit from the access in respect of fees paid to
and for establishing procedures for preventing fraud
to and possession of Unpublished Price Sensitive Information and/or detecting fraud when it occurs. auditors 19. GENERAL SHAREHOLDERS’ INFORMATION
(UPSI) about the Company which is not in the public domain Total - Auditors fees and 1.55 1.53
and thus constitutes insider information. The Company ii. To provide a clear guidance to employees and others i. Annual General Meeting for the financial year
Expenses 2022-23.
Secretary has been appointed as the Compliance Officer of dealing with REC forbidding them from involvement
the Company; and is responsible for adherence of the said in any fraudulent activity and the action to be taken 17. MEANS OF COMMUNICATION The ensuing 54th Annual General Meeting (AGM) of
Code. The said Code is available at https://recindia.nic.in/ by them where they suspect any fraudulent activity. shareholders of the Company will be held through
uploads/files/cs-revised-insider-trading-code-submitted-to- The Company recognizes that timely communication of video conferencing / other audio visual means on the
iii. To provide timeline and details to Nodal Officer for relevant information with all stakeholders, is a key element of
stock-exchanges-dt070619.pdf. reporting fraud once detected or suspected. following day, date and time:-
its overall Corporate Governance framework. The Company
The said Code sets up policies and procedures which aims to iv. To conduct investigations into fraudulent activities. communicates with its shareholders, bondholders and other Day, date Wednesday, September 6, 2023.
prevent leakage of UPSI and to institute adequate mechanism stakeholders through various means including through its
of Internal Controls to preserve confidentiality of the sensitive v. To provide assurances that any and all suspected website, filings made on stock exchanges, ads published in the Time 11:00 AM
information. Further, it also prescribes the practices, procedures fraudulent activity(ies) will be fully investigated. media, social media updates and publication of annual reports. Details regarding participation in the said meeting
and norms to be followed for fair disclosure of UPSI and to The Company also communicates with its institutional investors and other relevant information of shareholders,
vi. Fraud in any form against REC will not be tolerated. through associate meets and press releases from time to time.
prescribe legitimate purposes, subject to which the UPSI can are appearing in the Notice of the 54th AGM of the
be shared with any stakeholders or business partner of REC. The 15. WHISTLE BLOWER POLICY Latest updates and relevant corporate disclosures made Company forming part of this Annual Report.
Code lays down the procedures to be followed and disclosures to the Stock Exchanges from time to time, quarterly and ii. Financial Calendar (FY 2022-23 vis-à-vis FY 2023-24)
The Company has in place a “Whistle Blower Policy”, in
to be made while dealing in the equity shares/securities of the annual financial results, shareholding pattern, annual
compliance of the provisions of the Companies Act, 2013, The financial calendar for the last / completed
Company and the consequences of non-compliance. reports and other relevant information, including official
SEBI LODR Regulations and DPE Guidelines on Corporate financial year (FY 2022-23) vis-à-vis the next / ongoing
news releases and result presentations made to institutional
In line with the requirement of the said Code, whenever some Governance. The Whistle Blower Policy enables the Directors financial year (FY 2023-24), is as under:-
investors or analysts, are available on REC’s website i.e.,
UPSI is submitted to the Board for consideration and approval / employees of REC and/or its subsidiaries to raise concerns
including consideration of quarterly results, the trading regarding any alleged malpractice or wrong doing, which
Financial year FY 2022-23 FY 2023-24
window is closed and notice of such closure of trading window could affect the business or reputation of the Company. The
manner and competent authority for making complaint is Accounting Period 1-Apr-2022 to 31-Mar-2023 1-Apr-2023 to 31-Mar-2024
is issued to the designated persons and concerned persons
prescribed under the Policy. The policy is available at https:// Announcement of Financial Results Q1 4-Aug-2022 Q1 Within 45 days from end of
well in advance. Further, proper announcements are also made
on the website of the Company as well as to Stock Exchanges www.recindia.nic.in/uploads/files/Whistle_Blower_Policy.pdf. quarter
Q2 27-Oct-2022 Q2
where the shares of the Company are listed, restraining them Pursuant to the Whistle Blower Policy, no complaint was Q3 30-Jan-2023 Q3
and their dependent family members from dealing in listed received during the year under review. Further, a declaration Q4 & Annual 17-May-2023 Q4 & Annual Within 60 days from end of
securities of the Company, when the trading window is closed. by the CMD that no person has been denied access to the financial year
Competent Authority under the said policy during the
14. POLICY FOR PREVENTION OF FRAUD financial year 2022-23 and that necessary system has been Date of AGM Wednesday, September 6, 2023. August/September, 2024
put in place to provide protection to the complainant, iii. Dividend Payment of Dividend) Rules, 2014, as amended from
The Company has framed a “Policy for Prevention of
wherever required, is as under: time to time, the Company has paid interim dividend
Fraud”, to inter-alia provide a system for detection (a) Dividend Distribution Policy
The Company has formulated a Dividend for the financial year 2022-23, as detailed hereunder:
Annual Affirmation in terms of Whistle Blower Policy of the Company Distribution Policy in compliance of Regulation
43A of the SEBI LODR Regulations, which, inter-alia, Particulars Date of Divi- Dividend
During the financial year 2022-23, no person has been denied access to the Competent Authority and necessary system has been specifies the external and internal factors including dend Payment per Equity
put in place, to provide protection to the complainant, wherever required. financial parameters, that shall be considered while Share (in ₹)
Sd/- declaring dividend and the circumstances under 1st Interim Dividend 24-Nov-2022 5.00
Place : Gurugram Vivek Kumar Dewangan which the shareholders of the Company may or
2nd Interim Dividend 28-Feb-2023 3.25
Date : April 15, 2023 Chairman & Managing Director may not expect dividend. The policy is available at
DIN: 01377212 https://www.recindia.nic.in/uploads/files/Dividend_Distribution_Policy.pdf. Final Dividend* 30 days from 4.35
the date of
In addition to the above, REC has also adopted Whistle Blower 16. TOTAL FEES PAID TO AUDITORS (b) Dividend for the financial year 2022-23 declaration
Policy (PIDPI Resolution) issued by the Central Vigilance Details of the total fees for all services paid by REC and its In pursuance of Article 114 of the Articles of Association TOTAL 12.60
Commission vide Office Order dated May 17, 2004; and the subsidiaries, on a consolidated basis, to the Statutory Auditors of the Company read with Section 123 of the *Subject to the approval of shareholders in 54 AGM.
th
same is incorporated in the “Vigilance Hand Book” of the

Companies Act, 2013 and Companies (Declaration and
Company.
84 85
Dividend history for the last five financial years Demat Account of the IEPF Authority. Accordingly, Deputy Nodal Officer of the Company in respect of
the Company has transferred 13,558 Equity Shares IEPF matters:
Financial Total paid-up Share Capital Total Dividend Rate of Date of Dividend per Equity of ₹10/- each, including fractional bonus shares, to
year as on record date paid Dividend payment Share of ₹10/- each the IEPF in December, 2022. As on March 31, 2023, Designation Name and Designation
(₹ in crore) (₹ in crore) (%) the number of equity shares held in Demat account Nodal Officer Shri J. S. Amitabh
2017-18 1,974.92 1,807.05 91.50 27-Feb-2018 Interim Dividend (₹7.40) of IEPF Authority were 1,87,928. Subsequently, 2,927 Executive Director & Company
15-Oct-2018 Final Dividend (₹1.75) Equity Shares of ₹10/- each have been transferred Secretary
to the IEPF Authority in April, 2023, in line with the
2018-19 1,974.92 2,172.41 110.00 19-Mar-2019 Interim Dividend (₹11.00) statutory provisions. Deputy Nodal Shri Daljeet Singh Khatri
2019-20 1,974.92 2,172.41 110.00 24-Feb-2020 Interim Dividend (₹11.00) Officer for Executive Director (Fin)
The members who have a claim on the above Debentures/ Shri Koshal Puri
2020-21 1,974.92 2,510.12 127.10 3-Dec-2020 1st Interim Dividend (₹6.00) dividends and/or shares or Interest and/or Principal of Bonds Senior General Manager (Fin.)
30-Mar-2021 2nd Interim Dividend (₹5.00) Debentures may write an e-mail at complianceofficer@
Deputy Nodal Shri M. L. Kumawat
recl.in/[email protected], stating the requirement
21-Oct-2021 Final Dividend (₹1.71) Officer for Equity Senior General Manager (Fin.) &
of issuing an entitlement letter. The entitlement letter
2021-22 1,974.92 3,021.63 153.00 2-Sep-2021 1st Interim Dividend (₹2.00) Shares HoD (CS)
will contain the information of amounts/dividend
25-Nov-2021 2nd Interim Dividend (₹2.50) amount and/or share transferred by the Company The Company will upload the details of unclaimed/
to IEPF having completed 7 years. After issuance of unpaid amounts pertaining to shareholders/
3-Mar-2022 3rd Interim Dividend (₹6.00)
the entitlement letter, an online application in the bondholders of the company containing information
13-Oct-2022 Final Dividend (₹4.80) prescribed Form No. IEPF-5 available on the website like name, address, amount due to be transferred to
www.iepf.gov.in shall be filed and self-attested physical IEPF and due date of transfer of amount to IEPF, on
Pursuant to comprehensive guidelines on capital matured debentures alongwith interest accrued on copy of the form, challan, Indemnity Bond and all other
management restructuring by CPSEs issued its website at https://recindia.nic.in/unpaid-dividend,
the debentures which has remained unclaimed and requisite documents enumerated in Form No. IEPF-5,
by the Department of Investment and Public within 60 days from AGM. The shareholder-wise details
unpaid for a period of seven years from the date shall be sent in an envelope marked “Claim for refund
Asset Management (DIPAM), Ministry of Finance, of amounts and shares, which have already been
it became due for payment shall be transferred to from IEPF Authority”, to the Company Secretary at the
Government of India and based on the financial transferred by the Company to IEPF, are also available
IEPF. Accordingly, the following amount has been Corporate Office for shares and/or dividend and to
statements of the Company for the financial year on REC’s website i.e., https://recindia.nic.in/iepf-details.
transferred to IEPF in FY 22-23 w.r.t Unclaimed CGM (Fin.) - Resources for interest and/or principal for
ended on March 31, 2023, the Company issued bonus Principal/Interest on Debentures Debentures. The Company has uploaded the details of unclaimed/
shares to its shareholders, in the ratio of 1:3, i.e., one unpaid amounts pertaining to shareholders /
(1) bonus equity share of ₹10/- each fully paid-up for Particulars Date of IEPF Amount (₹) Claim forms complete in all aspects will be verified bondholders of the company containing information
Transfer and on the basis of Company’s verification report,
every three (3) existing equity shares of ₹10/- each like name, address, amount due to be transferred to
fully paid-up, by capitalizing a sum not exceeding Principal & Interest of 20-Apr-2022 95,64,193.00 refund will be processed by IEPF Authority in favor IEPF and due date of transfer of amount to IEPF, on
₹658,30,60,000 out of the sum standing to the credit 54 EC Bonds of claimants’ Aadhaar-linked bank account, through its website at https://recindia.nic.in/iepf-details. The
of its ‘Securities Premium Account’. After, the said electronic transfer and credit of shares in the demat
Interest of 54 EC Bonds 13-May-2022 3,00,000.00 investor-wise details of amounts and shares, which
bonus issue, the paid up share capital of the Company account. No claims shall lie against the Company in
Principal & Interest of 13-Jun-2022 1,53,686.00 have already been transferred by the Company
has been increased to ₹2,633.22 crore, consisting of respect of the dividends / shares so transferred to the
54 EC Bonds to IEPF, are also available on REC’s website i.e.,
2,63,32,24,000 equity shares of ₹10/- each. IEPF Authority, as per the provisions of the Companies
https://recindia.nic.in/iepf-details.
Interest of 54 EC Bonds 18-Aug-2022 8,59,874.00 Act, 2013.
(c) Unpaid/Unclaimed Dividend w.r.t Equity Shares iv. Listing of Equity Shares & Debt Securities
Interest of 54 EC Bonds 14-Sep-2022 1,38,000.00 Nodal Officer
and Unpaid/Unclaimed Principal/Interest
w.r.t Debentures etc. and Equity Shares and Interest of 54 EC Bonds 19-Oct-2022 39,965.00 Equity Shares of REC are listed on the following Stock
Pursuant to Rule 7(2A) of the IEPF Rules, as on March
Debentures’ Principal and Interest transferred to Exchanges:
Principal & Interest of 28-Nov-2022 57,02,760.00 31, 2023, the following persons are the Nodal Officers/
the Investor Education & Protection Fund (IEPF) 54 EC Bonds
Amounts transferred to IEPF Principal & Interest of 14-Feb-2023 48,98,302.00 Particulars NSE BSE
Pursuant to Section 124(5) of the Companies Act 2013, 54 EC Bonds
Scrip Code RECLTD 532955
the dividend amounts and amounts of principal and Interest of 54 EC Bonds 10-Mar-2023 7,13,425.00
interest thereon in respect of debt securities, which Address National Stock Exchange of India Limited BSE Limited
TOTAL 2,23,70,205.00
remain unpaid/unclaimed for a period of seven years, Exchange Plaza, C-1, Block G, Bandra Kurla Phiroze Jeejeebhoy Towers
are transferred to the Investor Education & Protection The Company has been issuing notices in the Complex, Bandra (East), Mumbai-400051 Dalal Street
Fund (IEPF) of the Central Government. newspapers from time to time, in order to invite Mumbai-400001
attention of shareholders to submit their claims Telephone +91-22-2659 8100/8114 +91-22-2272 1233/34
During the financial year 2022-23, the following
towards the unpaid/unclaimed dividend. It is again
amounts of dividend became due for transfer to IEPF, Email [email protected] [email protected]
advised to all shareholders to encash their warrants
which were deposited as per details given below: Website www.nseindia.com www.bseindia.com
relating to dividend immediately or to write to the
Particulars Date of IEPF Amount (₹) R&TA of the Company for revalidation or issue of
Transfer Further, various Non-Convertible Debt Securities of vi. Registrar and Transfer Agent (R&TA) contact details
Demand Drafts in place of old warrants.
Final Dividend FY 10-Nov-2022 8,82,001.00 the Company are also listed on the Stock Exchanges,
Equity Shares transferred to IEPF details of which are appearing as an Annexure to the With effect from April 1, 2023, the Company has
2014-15
Board’s Report. changed its R&TA for Equity Shares from KFin
Interim Dividend FY 24-Mar-2023 50,67,000.00 As per the provisions of Section 124(6) of the
2015-16 Technologies Limited to Alankit Assignments Limited.
Companies Act, 2013 read with Rule 6 of IEPF Authority v. International Securities Identification Number (ISIN)
TOTAL 59,49,001.00 Further, necessary intimations, in this regard were
(Accounting, Audit, Transfer and Refund) Rules, 2016 ISIN of the Equity Shares of REC is INE020B01018. sent to respective stock exchanges and was also made
As per Section 125 of Companies Act, 2013 read {IEPF Rules}, all shares in respect of which dividend Further, details of ISIN of various debt securities
with Rules of IEPF Authority (Accounting, Audit, has not been claimed for seven consecutive years, available on the website of the Company. Updated
issued by the Company are given as an Annexure to
Transfer and Refund) Rules, 2016 {IEPF Rules}, all the are required to be transferred by the Company to the contact details of R&TA is referred as follows:
the Board’s Report.
86 87
R&TA for Equity Shares Monthly Performance of REC Share vis-à-vis NSE Nifty Monthly Performance of REC Share vis-à-vis BSE Sensex
Address Alankit Assignments Limited
205-208, Anarkali Complex, Jhandewalan Extension
New Delhi -110055
Telephone 011 – 42541234
Email [email protected]; [email protected]
Website www.alankit.com
R&TA(s) for various Debt Securities
Address KFin Technologies Limited Beetal Financial & Computer Services (P) Limited
Selenium Tower B, Plot 31&32, Gachibowli, Financial Beetal House, 3rd Floor, 99 Madangir, Behind Local
District Nanakramguda, Hyderabad-500032 Shopping Centre, New Delhi-110062
viii. Share transfer system furnish/update PAN, email address, mobile number, bank
Telephone 1-800-309-4001 +91-11-2996 1281-83
account and nomination details, besides linking their PAN
Email [email protected] [email protected], SEBI, through its Press Release dated December 3, 2018,
with Aadhar. Further, SEBI vide Circular dated March 16, 2023
[email protected] [email protected] has prescribed that with effect from April 1, 2019, requests
prescribed that those folios wherein any one or more of the
for effecting transfer of securities shall not be processed
Website https://www.kfintech.com/ www.beetalfinancial.com aforesaid details are not available on or after October 1, 2023
unless the securities are held in dematerialized form with
shall be frozen and the investor will not be eligible to lodge
vii. Market Price Data for the financial year 2022-23: a depository. Further, transmission or transposition of
grievance or avail service request from R&TA and will not
Monthly Performance of REC’s Equity Share vis-à-vis movement of NSE NIFTY and BSE SENSEX during the financial year 2022- securities, whether in physical or dematerialized form, is also
be eligible for receipt of dividend in physical mode. In view
23, was as under: required to be done in dematerialized form only. Accordingly,
of the same, members holding shares in physical mode are
all shareholders are requested to convert their shareholdings
requested to furnish PAN, KYC details and nomination forms
Month REC Share at NSE (₹) Movement of NSE NIFTY from physical form to demat form at the earliest, to reap the
immediately to the Company / R&TA in the prescribed forms
High Low Close High Low Close benefits of dematerialization and considering that transfer/
(as under), to ensure that their folios are not frozen on or
transmission of physical shares has been stopped as per
Apr’ 2022 135.80 122.90 127.00 18,114.65 16,824.70 17,102.55 after October 1, 2023 and if the frozen folio remain frozen
SEBI’s instructions.
as on December 31, 2025 it would be reported to Benami
May’ 2022 127.65 113.25 119.15 17,132.85 15,735.75 16,584.55 SEBI vide Circular dated November 3, 2021, has inter-alia Transactions (Prohibitions) Act, 1988:
Jun’ 2022 124.00 109.65 123.75 16,793.85 15,183.40 15,780.25 made it mandatory for holders of physical securities to
Jul’ 2022 131.55 120.10 131.00 17,172.80 15,511.05 17,158.25
Aug’ 2022 138.55 102.50 108.75 17,992.20 17,154.80 17,759.30 Forms Particulars Web-link for download
Sep’ 2022 109.25 92.85 94.00 18,096.15 16,747.70 17,094.35
Form ISR-1 Request for registering PAN, KYC details or changes/ https://recindia.nic.in/uploads/files/Form-ISR-1.pdf
Oct’ 2022 103.10 91.05 102.55 17,112.35 16,855.55 18,012.20 updation thereof
Nov’ 2022 113.80 99.00 110.35 18,816.05 18,616.55 18,758.35
Form ISR-2 Confirmation of signature of securities holder by the https://recindia.nic.in/uploads/files/Form-ISR-2.pdf
Dec’ 2022 118.50 108.00 116.50 18,887.60 17,774.25 18,105.30 Banker (in case of major mismatch in signatures)
Jan’ 2023 126.25 112.05 121.75 18,251.95 17,405.55 17,662.15
Feb’ 2023 123.35 110.45 114.30 18,134.75 17,255.20 17,303.95 Form ISR-3 Declaration form for opting-out of nomination by https://recindia.nic.in/uploads/files/Form-ISR-3.pdf
holders of physical securities
Mar’ 2023 128.45 113.20 115.45 17,799.95 16,828.35 17,359.75
Form SH-13 Nomination form https://recindia.nic.in/uploads/files/Form-no-SH-13.pdf
Month REC Share at BSE (₹) Movement of BSE SENSEX
Form SH-14 Cancellation or variation of nomination https://recindia.nic.in/uploads/files/Form-No-SH-14.pdf
High Low Close High Low Close
Apr’ 2022 135.80 123.00 127.05 60,845.10 56,009.07 57,060.87
The duly filled forms along with the signed documents/ the Company, has been submitted to the Stock Exchanges
May’ 2022 127.65 113.40 119.20 57,184.21 52,632.48 55,566.41 details (self-attested with date) may be furnished to the R&TA on yearly basis within the stipulated time. Further, it is also
Jun’ 2022 123.95 109.70 123.75 56,432.65 50,921.22 53,018.94 through ‘In Person Verification’ (IPV) by R&TA, through hard confirmed that all transfer of shares were completed within
Jul’ 2022 131.50 120.10 130.95 57,619.27 52,094.25 57,570.25 copies or through electronic mode with e-sign. The e-signed the prescribed time period.
documents are required to be sent from your registered
Aug’ 2022 139.00 99.20 108.70 60,411.20 57,367.47 59,537.07 Shareholding Pattern / Distribution of Shareholding
e-mail ID, to [email protected] with a copy marked to
Sep’ 2022 109.20 92.80 94.00 60,676.12 56,147.23 57,426.92 [email protected]. Further, for details/queries w.r.t (a) Shareholding Pattern on the basis of Ownership
Oct’ 2022 103.05 91.00 102.50 60,786.70 56,683.40 60,746.59 bonds, please visit https://recindia.nic.in/Forms.
The category-wise shareholding pattern of the
Nov’ 2022 113.70 98.10 110.25 63,303.01 60,425.47 63,099.65 Pursuant to Regulation 40(9) & (10) of the SEBI LODR Company as on March 31, 2023, vis-à-vis last year i.e.,
Dec’ 2022 118.50 108.05 116.55 63,583.07 59,754.10 60,840.74 Regulations, Certificate from Practicing Company Secretary as on March 31, 2022, was as follows:
confirming due compliance of share transfer formalities by
Jan’ 2023 126.30 112.00 121.70 61,343.96 58,699.20 59,549.90
Feb’ 2023 123.30 110.50 114.25 61,682.25 58,795.97 58,962.12
Mar’ 2023 128.40 113.15 115.45 60,498.48 57,084.91 58,991.52
88 89
Particulars As on March 31, 2023 As on March 31, 2022 ix. Liquidity
Number of Shares % of Total Shares Number of Shares % of Total Shares The shares of the Company are in compulsory dematerialized segment and available for trading under systems of both Depositories
i.e., National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). The correspondence details
Promoter & Promoter Group 1,38,59,93,662 52.63 1,03,94,95,247 52.63
of the depositories are as follows:
FPI, FPC & FII 56,65,14,684 21.51 47,93,18,179 24.27
Mutual Funds 19,30,01,898 7.33 18,24,09,568 9.24 Particulars NSDL CDSL
Resident Individuals 29,07,67,284 11.04 15,56,83,646 7.88 Address Trade World, A Wing, 4th Floor, Marathon Futurex, A-Wing, 25th Floor, NM Joshi
Kamala Mills Compound, Lower Parel, Mumbai - 400 013 Marg, Lower Parel, Mumbai - 400 013
Insurance Companies 56,52,957 0.21 24,53,392 0.12
Telephone +91-22-2499 7000 +91-22-2305 8640/24/39/42/63
Bodies Corporates 3,80,56,997 1.45 1,87,36,424 0.95 +91-22-4886 7000 1-800-22-5533
Clearing Members 3,39,652 0.01 20,02,781 0.10
Email [email protected] [email protected]
Banks 19,97,782 0.08 14,39,838 0.07 [email protected] [email protected]
HUF 1,65,76,501 0.63 87,73,935 0.45 Website https://nsdl.co.in/ www.cdslindia.com
Trusts 18,88,592 0.07 8,93,577 0.05 The details of number of shares held in dematerialized & physical form and email registered/not registered as on March 31, 2023 were
Non Resident Indians 1,03,91,386 0.39 53,46,627 0.27 as under:
Indian Financial Institutions/QIB 11,13,75,000 4.24 7,55,52,364 3.83
Particulars Number of Shareholders Number of Shares held % of Total
NRI-Non Repatriable 94,19,528 0.36 22,34,359 0.11 Shares
Email Email not Total
Employees 5,87,291 0.03 4,44,669 0.02 Registered Registered
Others (IEPF, AIF) 6,47,778 0.02 1,29,038 0.01 Physical 88 12,188 12,276 24,549 Negligible
NBFCs 13,008 Negligible 4,356 Negligible NSDL (Demat) 2,32,254 13,148 2,45,402 2,48,40,12,974 94.33
TOTAL 2,63,32,24,000 100 1,97,49,18,000 100 CDSL (Demat) 3,24,683 23,646 3,48,329 14,91,86,477 5.67
TOTAL 5,57,025 48,982 6,06,007 2,63,32,24,000 100.00
x. Reconciliation of Share Capital Audit Report Particulars Number Number

In terms of Regulation 76 of SEBI (Depositories & of cases of shares
involved
Participants) Regulations, 2018, M/s Savita Jyoti Associates,
Practicing Company Secretaries, Secunderabad had issued Aggregate number of 32 4,988
Reconciliation of Share Capital Audit Report for every quarter shareholders and outstanding
unclaimed shares in the Suspense
of the financial year 2022-23, after carrying out audits to
Account as on 1-Apr-2022
reconcile the total admitted, issued and listed share capital
of the Company with NSDL and CDSL. The reports confirmed Number of shareholders who Nil Nil
approached the Company for
that the total issued / paid up share capital is in agreement
transfer of unclaimed shares from
with the total number of shares in physical form and the total the Suspense account during the
number of dematerialized shares held with NSDL and CDSL. financial year
The said reports were submitted by the Company to the Stock Number of shareholders to Nil Nil
Exchanges within the stipulated time. whom unclaimed shares were
(b) Distribution of Shareholding as on March 31, 2023 transferred from the Suspense
xi. Details of Demat Suspense Account
Account during the financial year
The distribution of shareholding as on March 31, 2023 by number of shares held, was as under: The Company went for Initial Public Offer (IPO) of 15,61,20,000 Aggregate number of 32* 6,644*
equity shares in February 2008, which comprised of fresh shareholders and the
Particulars Number of Shareholders % of Shareholders Number of Shares held % of Total Shares
issue of 7,80,60,000 Equity Shares of ₹10/- each by the outstanding unclaimed shares in
1-5000 5,10,488 84.23 6,27,30,263 2.38 Company and an Offer for Sale of another equal number of the Suspense Account as on 31-
5001 -10000 45,696 7.54 3,33,67,244 1.27 Equity Shares by the President of India. Further, the Company Mar- 2023
went for Follow-on Public Offer (FPO) of 17,17,32,000 Equity *The number of cases and shares in the demat suspense account
10001-20000 26,478 4.36 3,82,41,475 1.45 include Bonus shares.
Shares in February 2010 which comprised of fresh issue of Notes:
20001-30000 7,865 1.30 1,99,72,607 0.76
12,87,99,000 Equity Shares by the Company and Offer for Sale 1. The voting rights on the shares outstanding in the suspense account
30001-40000 3,993 0.66 1,42,97,296 0.54 of 4,29,33,000 Equity Shares by the President of India. as on March 31, 2023 shall remain frozen till the time rightful owner
of such shares claims the same.
40001-50000 2,251 0.38 1,04,35,809 0.41 2. All the above cases are pertaining to IPO and there are no case of
The details of Equity Shares of the Company in Demat
50001-100000 5,079 0.84 3,66,45,824 1.39 unclaimed shares pertaining to the FPO.
Suspense Account during April 1, 2022 to March 31, 2023,
in accordance with the requirement of Regulation 34(3) xii. Outstanding GDRs / ADRs / Warrants or any convertible
100001 & above 4,157 0.69 2,41,75,33,482 91.80 instruments, conversion dates and likely impact on equity.
and Part F of Schedule V to the SEBI LODR Regulations, were
TOTAL 6,06,007 100.00 2,63,32,24,000 100.00 No GDRs / ADRs / Warrants or any convertible instruments
as follows: have been issued by the Company.
90 91
xiii. Annual Listing Fee to Stock Exchanges ANNEXURE-A
Registered Office
The Company has paid the Annual Listing Fee for the financial
year 2023-24 to National Stock Exchange of India Limited and
BSE Limited, in relation to its listed securities.
Address Core-4, SCOPE Complex, 7, Lodhi Road
New Delhi - 110003 Certificate of Non-Disqualification of Directors
[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing
xiv. Annual Custodial Fee to Depositories Telephone +91-11-4309 1500
Obligations and Disclosure Requirements) Regulations, 2015]
+91-11-4309 1501
The Company has paid the Annual Custodial Fee for the
financial year 2023-24 to National Securities Depository Email [email protected] To,
Limited and Central Depository Services (India) Limited. The Members of
Corporate Office REC Limited
xv. Plant Locations
Registered Office:
The Company is a Non-Banking Financial Institution (NBFC) Address REC World Headquarters, Plot no. I-4, Sector 29
Core 4, SCOPE Complex,
Gurugram, Haryana-122001
categorized as Infrastructure Financial Company (IFC) and it 7, Lodi Road, New Delhi- 110003
does not have any plant location(s). Telephone +91-124-271 1000
However, apart from its Registered Office at New Delhi and +91-124-444 1300 We have examined the relevant registers, records, forms, returns In our opinion and to the best of our information and according to
maintained by the Company and the disclosures received from the the verifications [including Director Identification Number (DIN)
Corporate Office at Gurugram, Haryana, the Company has Email [email protected] Directors of REC Limited having CIN: L40101DL1969GOI005095 status at the portal www.mca.gov.in] as considered necessary and
various Regional Offices / State Offices across the country
and having its registered office at Core 4, SCOPE Complex, 7, Lodi explanations furnished to us by the Company & its officers, we hereby
and a Training Institute at Hyderabad (REC Institute of Power xx. Compliance Officer and Public Spokesperson
Road, New Delhi -110003 (hereinafter referred to as ‘the Company’), certify that none of the Directors on the Board of the Company as
Management and Training), details of which are appearing at The name and contact details of Compliance Officer and produced before us by the Company for the purpose of issuing this on March 31, 2023, have been debarred or disqualified from being
the end of this Annual Report. Public Spokesperson of the Company are: Certificate, in accordance with Regulation 34(3) read with Schedule appointed or continuing as Directors of the Company by the
xvi. Corporate Identification Number (CIN) V Para-C clause 10(i) of the Securities and Exchange Board of India Securities and Exchange Board of India, Ministry of Corporate Affairs,
Compliance Officer and Public Spokesperson (Listing Obligations and Disclosure Requirements) Regulations, 2015. or any such other Statutory Authority:
The CIN of the Company is L40101DL1969GOI005095.
Name Shri J. S. Amitabh
xvii. Legal Entity Identifier Executive Director & Company Secretary Details of the Directors of REC Limited as on March 31, 2023
The legal entity identifier of the Company is
Address REC Limited Sl. no. Name of Director Director Identification Number (DIN) Date of Appointment*
335800B4YRYWAMIJZ374
REC World Headquarters, Plot no. I-4, 1. Shri Vivek Kumar Dewangan 01377212 May 17, 2022
xviii. Corporate Website Sector 29, Gurugram, Haryana-122001
2. Shri Ajoy Choudhury 06629871 June 1, 2020
The corporate website of the Company is www.recindia.nic.in.
Telephone +91-124-444 1331 3. Shri Vijay Kumar Singh 02772733 July 15, 2022
xix. Address for correspondence
Email [email protected] 4. Shri Piyush Singh 07492389 September 14, 2022
The address and contact details for correspondence with the
[email protected] 5. Smt. Parminder Chopra 08530587 February 4, 2022
Company are:
6. Dr. Gambheer Singh 02003319 November 15, 2021
7. Dr. Manoj Manohar Pande 09388430 November 15, 2021
For and on behalf of the Board of Directors 8. Dr. (Smt.) Durgesh Nandini 09398540 December 30, 2021
9. Shri Narayanan Thirupathy 10063245 March 6, 2023
*As per details verified from MCA portal.
Vivek Kumar Dewangan Ensuring the eligibility for the appointment/continuity of every as to the future viability of the Company nor of the efficiency or
Chairman & Managing Director Director on the Board is the responsibility of the management of the effectiveness with which the management has conducted the affairs
(DIN: 01377212) Company. Our responsibility is to express an opinion on the same, of the Company.
Place : Gurugram based on our verification. This certificate is neither an assurance
Date : August 11, 2023
For Hemant Singh & Associates

Company Secretaries
Sd/-
Hemant Kumar Singh
(Partner)
Membership No.: F6033
CP No : 6370
UDIN: F006033E000392496
Date : 26-05-2023
Place : New Delhi
92 93
ANNEXURE-B ANNEXURE-III TO BOARD’S REPORT
CERTIFICATE
Business Responsibility & Sustainability Report
SECTION A: GENERAL DISCLOSURES
Under Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015
I. Details of the listed entity
May 17, 2023 1. Corporate Identity Number (CIN) of the Listed Entity L40101DL1969GOI005095
This is to certify that: evaluated the effectiveness of internal control systems 2. Name of the Listed Entity REC Limited
of the company pertaining to financial reporting and we 3. Year of incorporation 1969
a. We have reviewed financial statements and the cash flow
have disclosed to the auditors and the Audit Committee,
statement for the year ended March 31, 2023 and that to the 4. Registered office address Core 4, SCOPE Complex, 7, Lodhi Road, New Delhi-110003
deficiencies in the design or operation of such internal
best of our knowledge and belief: 5. Corporate address REC World Headquarters, Plot no. I-4, Sector 29, Gurugram-122001
controls, if any, of which we are aware and the steps we have
i. these statements do not contain any materially taken or propose to take to rectify these deficiencies. 6. E-mail [email protected]
untrue statement or omit any material fact or contain
d. We have indicated to the auditors and the Audit Committee: 7. Telephone +91-124-444 1300
statements that might be misleading; and
i. significant changes in internal control over financial 8. Website www.recindia.nic.in
ii. these statements together present a true and fair
reporting during the year;
view of the company’s affairs and are in compliance 9. Financial year for which reporting is being done FY 2022-23
with existing accounting standards, applicable laws ii. significant changes in accounting policies during the 10. Name of the Stock Exchange(s) where shares are listed National Stock Exchange of India Limited
and regulations. year and that the same have been disclosed in the BSE Limited
notes to the financial statements; and
b. There are, to the best of our knowledge and belief, no 11. Paid-up capital ₹2,633.22 crore (As on March 31, 2023)
transactions entered into by the company during the year iii. instances of significant fraud of which we have
which are fraudulent, illegal or violative of the company’s become aware and the involvement therein, if any, of 12. Name and contact details (telephone, email address) Shri V.K. Singh
code of conduct. the management or an employee having a significant of the person who may be contacted in case of any (DIN: 02772733)
role in the company’s internal control system over queries on the BRSR report Director (Projects)
c. We accept responsibility for establishing and maintaining +91-124-271 5517
financial reporting.
internal controls for financial reporting and that we have [email protected]
13. Reporting boundary - Are the disclosures under this The disclosures are made in this report on a standalone basis.
report made on a standalone basis (i.e. only for the
entity) or on a consolidated basis (i.e. for the entity and
Sd/- Sd/- all the entities which form a part of its consolidated
(Ajoy Choudhury) (Vivek Kumar Dewangan) financial statements, taken together).
Director (Finance) Chairman & Managing Director
DIN: 06629871 DIN: 01377212 II. Products/services
14. Details of business activities (accounting for 90% of the turnover):
Sl. no. Description of main activity Description of business % of turnover of the entity
activity
1. Financial and Insurance Service Financial and Credit leasing 99.89%
activities
15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
Sl. no. Product/Service NIC Code % of total turnover contributed
1 Other Financial Services and Activities - Other Credit Granting 64920 99.57%
III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total
National - 24 24
International - - -
Note: Addresses of REC offices are appearing separately in this Annual Report.
17. Markets served by the entity

a. Number of locations
Location Number
National (No. of States) 28
International (No. of Countries) 0
94 95
b. What is the contribution of exports as a percentage of the a result, REC has actively started financing/exploring sub- V. Holding, Subsidiary and Associate Companies (including joint ventures)
total turnover of the entity? sectors like Airports, Metro Rail, Roads and Highways, Green
21. (a) Names of holding / subsidiary / associate companies / joint ventures
Hydrogen/Green Ammonia, Irrigation/Water resources,
The Company is a Non-Banking Financial Company (NBFC)
Multi-Modal Logistics Parks, Cold Chains, Railway Stations Sl. Name of the holding / subsidiary / Indicate whether % of shares held Does the entity
categorized as Infrastructure Finance Company (IFC) by the
Redevelopment, Ports, Healthcare Infrastructure etc. Various no. associate companies / joint ventures (A) holding/ Subsidiary/ by listed entity indicated at column
Reserve Bank of India. The contribution of exports to the
infrastructure & logistics projects aggregating ₹85,735 crore Associate/Joint Venture A, participate in the
turnover of the Company was Nil for the financial year 2022-23.
were approved during the year under review. Business Responsibility
c. A brief on types of customers initiatives of the listed
The key products of the Company include long term loans,
REC’s principal products are interest-bearing loans to state medium term loans, short terms loans, debt refinancing, entity? (Yes/No)
utilities, private sector borrowers etc. The Company’s business revolving bill payments etc. for the entire of power and 1 Power Finance Corporation Limited Holding company 52.63% Yes
activities involve financing projects in the entire power sector infrastructure & logistics sector value chain. Customers of the
2 REC Power Development and Consultancy Subsidiary 100% Yes
value chain, be it power generation (both conventional Company include State Governments, Central/State utilities,
Limited
and renewable energy), transmission, distribution, independent power producers, rural electric cooperatives,
rural electrification, e-mobility, financing equipment joint ventures, private sector borrowers etc. 3 Chandil Transmission Limited Subsidiary 100% Yes
manufacturing for power sector and activities having forward IV. Employees 4 Dumka Transmission Limited Subsidiary 100% Yes
/ backward linkage with power projects. 5 Mandar Transmission Limited Subsidiary 100% Yes
18. Details as at the end of financial year:
Further, during the year, Ministry of Power has permitted 6 Koderma Transmission Limited Subsidiary 100% Yes
REC to lend to Infrastructure and Logistics sector as well. As a. Employees and workers (including differently abled):
7 Bidar Transmission Limited Subsidiary 100% Yes
8 Ramgarh II Transmission Limited Subsidiary 100% Yes
Sl. no. Particulars Total (A) Male Female
9 Sikar Khetri Transmission Limited Subsidiary 100% Yes
No. (B) % (B / A) No. (C) % (C / A)
10 Beawar Transmission Limited Subsidiary 100% Yes
Employees
11 Luhri Power Transmission Limited Subsidiary 100% Yes
1. Permanent (D) 417 353 84.65% 64 15.35%
2. Other than Permanent (E) 2 2 100% - - 12 Khavda II- D Transmission Limited* Subsidiary 100% Yes
3. Total employees (D + E) 419 355 84.73% 64 15.27% 13 Meerut Shamli Power Transmission Limited Subsidiary 100% Yes
Workers 14 NERES XVI Power Transmission Limited Subsidiary 100% Yes
4. Permanent (F) 15 KPS1 Transmission Limited** Subsidiary 100% Yes
5. Other than Permanent (G) Not Applicable *Striking off the name of project specific SPV i.e. Khavda II-D Transmission Limited is under process as the related inter-state Transmission Project is de-notified
by Central Electricity Authority, Ministry of Power.
6. Total workers (F + G)
**KPS1 Transmission Limited was transferred on April 20, 2023.
b. Differently abled Employees and workers: VI. CSR Details
Sl. no. Particulars Total (A) Male Female
22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013 (Yes/No): Yes
No. (B) % (B / A) No. (C) % (C / A)
Differently Abled Employees (ii) Turnover (in ₹): ₹39,208.06 crore
1. Permanent (D) 13 12 92.30% 1 7.70% (iii) Net worth (in ₹): ₹57,679.67 crore
2. Other than Permanent (E) Not Applicable
3. Total differently abled 13 12 92.30% 1 7.70% VII. Transparency and Disclosures Compliances
employees (D + E)
Differently Abled Workers 23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:
4. Permanent (F) Stakeholder Grievance Redressal FY 2022-23 FY 2021-22
5. Other than Permanent (G) group from Mechanism in Place (Yes/No)
Not Applicable Number of Number of Remarks Number of Number of Remarks
6. Total differently abled whom (If Yes, then provide web-link complaints complaints complaints complaints
workers (F + G) complaint is for grievance redressal policy) filed during pending filed during pending
received the year resolution the year resolution
19. Participation/Inclusion/Representation of women:
at close of at close of
Total (A) No. and Percentage of Females the year the year
No. (B) % (B / A) Communities Yes 59 1 - 98 1 -
Board of Directors 9 2 22.22% https://recindia.nic.in/grievances
Key Management Personnel 4 0 0 Investors Yes 1,217 0 - 18,042 0 -
(other than https://recindia.nic.in/bonds-grievances
20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years)
shareholders)
FY 2022-23 FY 2021-22 FY 2020-21 Shareholders Yes 2,464 6 The 4,670 3 -
Male Female Total Male Female Total Male Female Total https://recindia.nic.in/investors-contact pending
Permanent Employees (%) 9.32 1.86 11.18* 8.25 7.00 15.25* 9.70 12.00 21.70* cases have
Permanent Workers Not Applicable since been
* including superannuation resolved
96 97
Stakeholder Grievance Redressal FY 2022-23 FY 2021-22 SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
group from Mechanism in Place (Yes/No) Number of Number of Remarks Number of Number of Remarks This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC
whom (If Yes, then provide web-link complaints complaints complaints complaints Principles and Core Elements.
complaint is for grievance redressal policy) filed during pending filed during pending
received the year resolution the year resolution Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
at close of at close of Policy and management processes
the year the year 1. a. Whether your entity’s policy/policies cover each principle and its core
Y Y Y Y Y Y Y Y Y
Employees Yes - - - - - - elements of the NGRBCs. (Yes/No)
and workers Available on intranet b. Has the policy been approved by the Board? (Yes/No) Y Y Y Y Y Y Y Y Y
Customers Yes - - - - - - c. Web Link of the Policies, if available Y Y Y Y Y Y Y Y Y
https://recindia.nic.in/uploads/files/co- 2. Whether the entity has translated the policy into procedures. (Yes / No) Y Y Y Y Y Y Y Y Y
cs-contact-griev-redresl-officr-undr-fair- 3. Do the enlisted policies extend to your value chain partners? (Yes/No) Y Y Y Y Y Y Y Y Y
practice-code-dt020523.pdf 4. Name of the national and international codes/certifications/labels/
Value Chain Yes - - - - - - standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance,
Y Y Y Y Y Y Y Y Y
Partners https://recindia.nic.in/independent- Trustea) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity
external-monitor-iem-for-rural- and mapped to each principle.
electrification-corporation-ltd 5. Specific commitments, goals and targets set by the entity with defined Being a Central Public Sector Enterprise, the operational
Other (please - - - - - - - timelines, if any. and financial targets for REC for financial year 2022-23
specify) are fixed under the MoU guidelines of the Department
of Public Sector Enterprises (DPE), Government of India.
24. Overview of the entity’s material responsible business conduct issues The MoU framework contains 12 parameters with marks
allocated to each, aggregating a maximum of 100. A
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that number of compliances are also spelt out as part of the
present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with MoU, which carry negative marks for non-compliance.
its financial implications, as per the following format: Total score achieved above 90 results in excellent rating.
The MoU document is available at the following link
https://recindia.nic.in/mou
Sl. Material issue Indicate whether Rationale for In case of risk, Financial implications 6. Performance of the entity against the specific commitments, goals and REC enters into Memorandum of Understanding (MoU)
no. identified risk or opportunity identifying the risk / approach to adapt or of the risk or targets along-with reasons in case the same are not met. with its holding company, PFC, under the framework
(R/O) opportunity mitigate opportunity (Indicate prescribed in MoU Guidelines issued by the Department
positive or negative of Public Enterprises (DPE). The MoU demarcates key
implications) performance parameters for the Company finalized in
consultation with the Ministry of Power, Government of
1. Gradual shift from Opportunity Thrust for cleaner - REC shall experience
India and the performance of the Company is evaluated
conventional power shall provide positive financial
vis-à-vis the MoU parameters.
power sources to additional financing implication due to
renewable power avenues for the additional revenues The performance of the Company in terms of MoU
sources corporation. because of financing signed under the guidelines of the DPE, Government of
towards cleaner power. India for the financial year 2023 is likely to be excellent,
subject to final evaluation by DPE. For the financial
2. Shift to paperless Opportunity Shift to digital means - REC shall experience year 2021-22 MoU rating of REC has been "Very Good",
environment of communication & positive financial primarily due to a newly introduced parameter of stock
to further the record management implication due to cost price performance.
sustainability shall enhance saving & increase in
Governance, leadership and oversight
speed, accuracy, swiftness of operations.
efficiency, cost saving, 7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
accountability & achievements (listed entity has flexibility regarding the placement of this disclosure)
preservation of records. REC is striving towards developing frameworks and methodologies to effectively assess and integrate ESG factors into its decision-
making processes. To counter these challenges, Company has already adopted Board approved ESG Policy.
3. Climate conscious Risk Growing climate REC has taken an REC shall experience
REC has made notable achievements in the realm of ESG initiatives, showcasing its commitment to sustainability and responsible
measures to ensure concerns may pose a “Adapt” approach to positive financial
practices. The company has undertaken extensive plantation activities, contributing to environmental conservation and biodiversity.
the sustainability threat to operations of address the climate implication due to cost
Additionally, REC has implemented a 979 kWp rooftop solar plant at its corporate office, harnessing renewable energy to meet
the Company. concerns. REC has built saving & additional
its electricity requirements, thus reducing its carbon footprint. The procurement of electric vehicles (EVs) and the establishment
a climate conscious revenues.
of EV charging stations further demonstrate the company's efforts to promote clean transportation and reduce emissions. These
“Green” building for
achievements exemplify REC Limited's dedication to integrate ESG principles into its operations and fostering a more sustainable
its corporate office.
future. REC aspires to be a major lender for large grid connected Renewable Energy projects, thus enabling the energy transition of
Further, REC has
the country towards green energy. REC appraisal process for loans ensures that the required pollution and environmental clearances
focused on financing
are obtained by its borrowers. REC ensures that it is compliant with all the statutory and regulatory requirements and the appropriate
towards cleaner &
reporting / filings in this regard are done timely without any lapse. REC follows a well defined procurement policy for procurement
environment friendly
of goods and services. The IT infrastructure security and management systems are well deployed including disaster recovery. The
projects.
HR Policies of the Corporation ensure holistic employee well being and benefits, career progression, adequate training, safety and
encouragement for women employees and well defined grievance redressal mechanism, thus ensuring proper governance.
98 99
8. Details of the highest authority responsible for implementation and Board of Directors 2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity
oversight of the Business Responsibility policy (ies). or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following
format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing
9. Does the entity have a specified Committee of the Board/Director Yes. Obligations and Disclosure Requirements) Regulations, 2015 and as disclosed on the entity’s website):
responsible for decision making on sustainability related issues? (Yes / No). Shri V.K. Singh
If yes, provide details. (DIN: 02772733) Monetary
Director (Projects)
NGRBC Name of the Amount (In Brief of the Case Has an
+91-124-271 5517
Principle regulatory/ INR) appeal been
[email protected]
enforcement preferred?
10. Details of Review of NGRBCs by the Company: agencies/ (Yes/No)
Subject for Review Indicate whether review was undertaken by Director Frequency judicial
/ Committee of the Board / Any other Committee (Annually/ Half yearly/ Quarterly/ Any other – please institutions
specify) Penalty/ Fine Principle 1 SEBI (LODR) ₹43,07,000/- For the financial year ended on March 31, 2023, the Yes.
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9 including GST Company has complied with all requirements of
National Stock
(₹21,53,500/- SEBI LODR Regulations, the Companies Act, 2013
Performance against Exchange of
each and rules made thereunder, applicable Secretarial
above policies and Y Y Y Y Y Y Y Y Y On quarterly and annual basis India Limited
including Standards issued by ICSI and DPE Guidelines on
follow up action
BSE Limited GST). Corporate Governance, as amended from time to
Compliance time, except compliance related to composition of
with statutory Board of the Company.
requirements of Due to such non-compliances, NSE and BSE have
relevance to the Y Y Y Y Y Y Y Y Y On quarterly and annual basis
imposed a total fine of ₹43,07,000/- including GST
principles, and,
(₹21,53,500/- each including GST) by each stock
rectification of any
exchanges, for all the four quarters of FY 2022-23.
non-compliances
Settlement - - - - -
11. Has the entity carried out independent assessment/ evaluation of the P1 P2 P3 P4 P5 P6 P7 P8 P9
working of its policies by an external agency? (Yes/No). If yes, provide Compounding - - - - -
Y Y Y Y Y Y Y Y Y fee
name of the agency.
Note: The relevant explanation/information/links are mentioned in the Annexure to this Report. Non-Monetary
NGRBC Name of the Brief of the Case Has an
12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated.
Principle regulatory/ appeal been
Not applicable. enforcement preferred?
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE agencies/ (Yes/No)
judicial
This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes institutions
and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed
by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress Imprisonment - - - -
to a higher level in their quest to be socially, environmentally and ethically responsible. Punishment - - - -
PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and 3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-
Accountable. monetary action has been appealed.
ESSENTIAL INDICATORS
Case Details Name of the regulatory/ enforcement
1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year: agencies/ judicial institutions
In connection with fine levied by NSE and BSE for non-appointment of Independent 1. National Stock Exchange of India Limited (NSE)
Segment Total number Topics / principles covered under the training %age of persons
Director, as stated in the previous question, since the power to appoint Directors
of training and its impact in respective 2. BSE Limited (BSE)
on the Board of the Company vests with the President of India, acting through
and awareness category covered
the Administrative Ministry i.e. Ministry of Power (MoP), Government of India,
programmes by the awareness
therefore the Company has been requesting the appointing authority, i.e. MoP,
held programmes
for appointment of requisite number of Independent Director. Accordingly, the
Board of Directors 4 Familiarization programme of Independent 33.33% Company has no control in the appointment of Directors.
Directors to acquaint the Directors with business
In view of the same, the Company had requested / is requesting the stock
and operations of the Company, industry structure,
exchanges to waive off the said fines. It is pertinent to mention, that BSE has
nature of services offered.
already waived off the fine imposed on the Company for earlier quarters ended
Key Managerial Personnel 3 Experiential Learning Programme, Solar power 53.85% on September, 2020 and December, 2020. The Company is following up with the
conference and training programme on Public Stock Exchanges for waiving off the balance fine(s) as well.
Procurement.
4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-
Employees other than BoD and KMPs 19 Various technical and financial topics including 50.91%
experiential learning and personal effectiveness link of the policy.
which are relevant for day to day work.
REC follows procedures and norms of CVC regarding anti-corruption and anti-bribery and also the PIDPI Resolution (GoI Resolution on
Workers N.A. N.A. N.A. Public Interest Disclosure and Protection of Informers) relating to complaints for disclosure on any allegation of corruption or misuse
of office wherein CVC is Designated Agency. Apart from the above, REC also adopted Whistle Blower Policy.
100 101
Further, the Company’s Conduct, Discipline and Appeal (CDA) enforcement agency for the charges of bribery/ corruption: 2. a. Does the entity have procedures in place for available on GeM (Government e-Marketplace)
Rules define the code of conduct for all employees and sustainable sourcing? (Yes/No) portal, with purchase preference to MII/MSEs as per
recognizes acts of bribery, corruption, etc. as misconduct. FY 2022-23 FY 2021-22 Government directives. During the financial year
Considering the business activities of the Company,
2022-23, REC not only achieved but exceeded its
The Company also has a Policy for Prevention of Frauds, Directors - - this question has limited applicability. As a NBFC,
target for procurement from GeM. The procurement
which sets forth obligation on part of every employee of the REC’s resource use is mainly limited to electricity,
KMPs - - from GeM portal was 89.28% in respect of MoU and
Company for prevention, detection and reporting of any act office supplies and communication or IT equipment.
Employees - - procurement from MSEs was 55.01%.
of fraud, bribery or corruption.
Being a NBFC, REC is less resource-intensive in terms
Workers - - 3. Describe the processes in place to safely reclaim
5. Number of Directors / KMPs / employees / workers of material requirements. Despite the limited scope,
your products for reusing, recycling and disposing
against whom disciplinary action was taken by any law REC ensures responsible sourcing of all its material at the end of life, for (a) Plastics (including
requirements. The Company promotes GeM portal packaging) (b) E-waste (c) Hazardous waste and
6. Details of complaints with regard to conflict of interest: (Government e-Marketplace) in its procurements (d) other waste.
and also promotes sourcing from MSE vendors. All
FY 2022-23 FY 2021-22 procurement / sourcing of material and services is Given the nature of business and operations, the
done as per the procedure defined in the Procurement Company does not have material plastic waste,
Number Remarks Number Remarks Guidelines of the Company. e-waste and other waste. Further, the Company does
not have any hazardous waste.
Number of complaints received in relation to issues of - - - - Further, REC required its borrowers of conventional
Conflict of Interest of the Directors energy projects, to follow all applicable environmental Further, the Company has such mechanism in which
norms, as a part of its loan disbursement conditions. most of the products are used made of recycled
Number of complaints received in relation to issues of - - - - plastic and also reduced plastic use to very minimal
REC also finances renovation and modernization of
Conflict of Interest of the KMPs and encourages use of substitutes such as jute bags,
old thermal power plants and installation of pollution
control equipment, with the overall objective of cloth bags etc.
7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators / law
enforcement agencies / judicial institutions, on cases of corruption and conflicts of interest. safeguarding the environment and reducing emission 4. Whether Extended Producer Responsibility (EPR) is
of harmful oxides and particular matter. applicable to the entity’s activities (Yes/No). If yes, whether
Not applicable. the waste collection plan is in line with the Extended Producer
b. If yes, what percentage of inputs were sourced
LEADERSHIP INDICATORS Responsibility (EPR) plan submitted to Pollution Control
sustainably?
Boards? If not, provide steps taken to address the same.
1. Awareness programmes conducted for value chain partners on any of the principles during the financial year: In terms of material requirements, REC has made it
Not Applicable, since REC is a NBFC and is not involved in
mandatory to procure common use goods & services
manufacturing of any kind of product.
Total number Topics / principles covered under the training %age of value chain partners covered (by
of awareness value of business done with such partners) LEADERSHIP INDICATORS
programmes held under the awareness programmes
1. Has the entity conducted Life Cycle Perspective/ The loan products are developed in line with the market
2 Vigilance Division of REC conducted training program/ Nil Assessments (LCA) for any of its products (for norms, borrower requirements and applicable statutory and
workshop for employees of REC including Regional manufacturing industry) or for its services (for service regulatory provisions of RBI and/or any other regulators.
Offices, Subsidiary & Training Centre, on following topics: industry)? If yes, provide details in the following format? Details of loan products offered by the Company are available
• Procurement and Contracts Management at the website at https://recindia.nic.in/financial-products.
• Preventive Vigilance Being a NBFC categorized as IFC, the main products offered
by REC include rupee term loans, short-term and medium- REC has prepared Environmental Social Impact Analysis (ESIA)
2. Does the entity have processes in place to avoid / manage conflict of interests involving members of the Board? (Yes/No) If Yes, term loans etc. to borrowers for schemes and projects in report, under Official Development Assistance - KfW-III, which
provide details of the same. the entire power and infrastructure & logistics sector value
is applicable for financing renewable energy projects. The
chain. Further, as nodal agency for various programmes of
The Company has a Code of Conduct for Board members and senior management, which covers inter-alia the process of dealing with the Government of India, REC contributes towards the overall same serves as the roadmap for REC to address environmental
conflict of interests. The Policy is available at https://recindia.nic.in/uploads/files/Code_Business_Conduct_Ethics.pdf. development of power sector. & social issues in financing renewable power projects.
PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe. 2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products
/ services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same
ESSENTIAL INDICATORS along-with action taken to mitigate the same.
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively. Name of Product / Service Description of the risk / Action Taken
concern
Current Financial Year Previous Financial Year Details of improvements in environmental and social impacts Other Financial Services No significant social or REC is not a manufacturing Company. However, as a part of its
and Activities - Other Credit environmental concern / risk appraisal process for all the power project it finances, REC identifies
R&D - - - Granting is envisaged from production and assess the potential environmental risks of the projects.
Capex - `12.22 crore REC has installed a 979kWp roof top solar plant in its corporate or disposal of the Company’s Environmental issues, if any, are identified through due diligence,
office, to cater to its electricity requirement. The solar plant products / services. site visits and review of applicable complainces etc.
is functional and connected to grid and has generated 13.19 REC is also financing installation of pollution control equipment
lakh units of electricity, which has catered to around 50% of the in thermal power plants, in line with Government directives.
total load requirement of Corporate Office. The building also has This includes installation of Flue Gas Desulphurization (FGDs),
radiant cooling for slabs, Integrated Building Management Selective Catalytic Reduction (SCR) and Electrostatic Precipitators
System (IBMS), automated sensor controlled lighting, bio- (ESP), which contribute towards curbing of harmful emissions and
climatic glass façade with motorized blinds, etc. for energy particulate matter. During the financial year, REC has sanctioned 7
saving. projects for installation of pollution control equipment, with total
loan amount of ₹1,647.08 crore.
102 103
3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) 2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.
or providing services (for service industry).
Benefits FY 2022-23 FY 2021-22
Considering the nature of business and operations, the percentage of recycled or reused input material used by the Company is negligible.
4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely No. of No. of workers Deducted and No. of employees No. of workers Deducted and
disposed, as per the following format: employees covered as deposited with covered as a % of covered as deposited with
covered as a % of total the authority total employees a % of total the authority
a % of total workers (Y/N/N.A.) workers (Y/N/N.A.)
FY 2022-23 FY 2021-22
employees
Re-Used Recycled Safely Disposed Re-Used Recycled Safely Disposed
PF 100% N.A. Yes 100% N.A. Yes
Plastics (including packaging) - - - - - -
Gratuity 100% N.A. Yes 100% N.A. Yes
E-waste* - - 140 - - 140
Hazardous waste - - - - - - ESI N.A. N.A. N.A. N.A. N.A. N.A.
Other waste - - - - - - Others NPS 100% N.A. Yes 100% N.A. Yes
- please
* Denotes number of IT units safely disposed which were identified last year i.e. FY 2021-22 for disposal. PRMS 100%* N.A. Yes 100%* N.A. Yes
specify
5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category. * subject to eligibility conditions prescribed by DPE
Not Applicable
3. Accessibility of workplaces Guidelines (WCAG) 2.0 level AA. This will enable people
PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains. with visual impairments access the website using assistive
Are the premises / offices of the entity accessible to technologies, such as screen readers. The information of
ESSENTIAL INDICATORS differently abled employees and workers, as per the the website is accessible with different screen readers,
requirements of the Rights of Persons with Disabilities such as JAWS, NVDA, SAFA, Supernova and Window-Eyes.
1. a. Details of measures for the well-being of employees: Act, 2016? If not, whether any steps are being taken by Further information about the same can be accessed at
the entity in this regard. https://recindia.nic.in/screen-reader-access.
Category Total % of employees covered by
(A) Yes, the premises are accessible to differently abled 4. Does the entity have an equal opportunity policy as per
Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care facilities employees, with elevators and ramps, wheel chair accessible the Rights of Persons with Disabilities Act, 2016? If so,
Number (B) % (B/A) Number (C) % (C/A) Number (D) % (D/A) Number (E) % (E/A) Number (F) % (F/A) restrooms and direction signs in braille at various points. provide a web-link to the policy.
Permanent employees Further, the corporate website of REC complies with World Yes, the Company has an Equal Opportunity policy and the
Wide Web Consortium (W3C) Web Content Accessibility same is available on intranet of the Company.
Male 353 - - 353 100 - - 353 100 353 100
Female 64 - - 64 100 64 100 - - 64 100 5. Return to work and Retention rates of permanent employees and workers that took parental leave:
Total 417 - - 417 100 64 15.35 353 84.65 417 100 Gender Permanent employees Permanent workers
Other than Permanent employees
Return to work rate Retention rate Return to work rate Retention rate
Male 2 - - - - - - 2 100 - -
Male 100% 100%
Female - - - - - - - - - - -
Total* 2 - - - - - - 2 100 - - Female 100% 100% Not Applicable
*On deputation from other organization/entity.
Total 100% 100%
b. Details of measures for the well-being of workers:
6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes,
give details of the mechanism in brief:
Category Total % of employees covered by
(A)
Health insurance Accident insurance Maternity benefits Paternity Benefits Day Care Yes/No
facilities (If Yes, then give details of the mechanism in brief)
Number (B) % (B/A) Number (C) % (C/A) Number (D) % (D/A) Number (E) % (E/A) Number (F) % (F/A)
Permanent Workers
Permanent Workers Not Applicable
Male Other than Permanent Workers
Female Not Applicable Permanent Employees
Yes. A detailed grievance redressal mechanism is in
Total place. It is available on the intranet of the Company.
Other than Permanent Employees
Other than Permanent Workers
Male 7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:
Female Not Applicable Yes, REC has recognized a union of its non-supervisory permanent employees and an association of its executives. Regular employees
of the Company are members of either the Employee Union or the Executive Association of REC.
Total
104 105
8. Details of training given to employees and workers: 12. Describe the measures taken by the entity to ensure a services of doctors were engaged to provide onsite medical
safe and healthy work place. facilities. To facilitate recreation and healthy life, Gymnasium
Category FY 2022-23 FY 2021-22 is available for employees in the premises. Various Yoga
Yes, in order to provide improved health care facilities to the
Total (A) On Health and On Skill Total On Health and On Skill programs and Health Camps were organized by the company
employees and their dependent family members, part-time
safety measures upgradation (D) safety measures upgradation regularly for the employees for better well-being.
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D) 13. Number of complaints on the following made by employees and workers:
Employees
Male 255 8 3.14 247 96.86 188 25 13.30 163 86.70 FY 2022-23 FY 2021-22
Female 60 1 1.67 59 98.33 36 02 5.56 34 94.44 Filed during Pending Remarks Filed during the Pending Remarks
the year resolution at year resolution at
Total 315 9 2.86 306 97.14 224 27 12.05 197 87.95
the end of year the end of year
Workers
Working - - - - - -
Male
Conditions
Female Not Applicable
Health & Safety - - - - - -
Total
9. Details of performance and career development reviews of employees and worker: 14. Assessments for the year: (A) Employees-Yes, the Company provides rehabilitation
package in case of death or permanent disability to
FY 2022-23 FY 2021-22 % of your plants and offices the employee and/or his/her family member.
that were assessed (by entity
Total (A) No. (B) % (B / A) Total No. (D) % (D / C) (B) Worker- Not applicable.
or statutory authorities or
(C) third parties) 2. Provide the measures undertaken by the entity to ensure
Employees
Health and safety practices - that statutory dues have been deducted and deposited
Male 100 76 76.00% 71 27 38.03% by the value chain partners.
Female 21 16 76.19% 13 10 76.92% Working Conditions -
Total 121 92 76.03% 84 37 44.05% Being NBFC, the Company includes in the terms & conditions
15. Provide details of any corrective action taken or of loans granted to its borrowers, necessary conditions
Workers underway to address safety-related incidents (if any) and stipulating timely deposit of their statutory dues, obtaining
Male on significant risks / concerns arising from assessments of of statutory clearances and meeting such other similar
Female Not Applicable health & safety practices and working conditions. obligations as per statutory requirements etc. The borrowers
Total are also required to furnish compliance of the same to the
Not Applicable, as such, no restricted area in the corporate Company at various stages.
10. Health and safety management system: b. What are the processes used to identify work-related building of REC in respect of safety related incident.
hazards and assess risks on a routine and non-routine LEADERSHIP INDICATORS 3. Provide the number of employees / workers having
a. Whether an occupational health and safety basis by the entity? suffered high consequence work-related injury / ill-health
management system has been implemented by the 1. Does the entity extend any life insurance or any compensatory / fatalities (as reported in Q11 of Essential Indicators
entity? (Yes/ No). If yes, the coverage of such system? Not applicable
package in the event of death of (A) Employees (Y/N) (B) above), who have been are rehabilitated and placed in
Yes, coverage system includes the safety management c. Whether you have processes for workers to report the Workers (Y/N). suitable employment or whose family members have
in work planning, process & in execution while work related hazards and to remove themselves from been placed in suitable employment:
handling chemicals, machine & cleaning equipment. such risks. (Y/N)
In order to identify work related hazards, checklist Not applicable Total no. of affected employees/ workers No. of employees/workers that are
& list of reported incident are taken into account on rehabilitated and placed in suitable
d. Do the employees/ worker of the entity have access to employment or whose family members
routine & regular training are organized for staff to
non-occupational medical and healthcare services? have been placed in suitable employment
mitigate the worked related risked.
(Yes/ No)
Further, prior commencement of any new work, FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
safety officer do safety audit of the work site, tools & Yes, in order to provide improved health care facilities to
the employees and their dependent family members, Employees - - - -
ensure additional safety measures if required, to carry
out the work safely. part-time services of doctors were engaged to provide Workers - - - -
onsite medical facilities. To facilitate recreation and
Also, medical camps are organized where all workers healthy life, Gymnasium is available for employees 4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career
have opportunity to avail the benefits of free medical in the premises. Various Yoga programs and Health endings resulting from retirement or termination of employment? (Yes/ No)
camp. Annual health check-ups are conducted by Camps were organized by the company regularly for
entity of all employees on their rolls. the employees for better well-being. The Company is a CPSE, which follows employment norms of DPE in cases of retirement or termination of employment. The Company
also provides post-retirement medical benefits and other welfare measures to its retired employees.
11. Details of safety related incidents, in the following format: 5. Details on assessment of value chain partners:
Safety Incident/Number Category FY 2022-23 FY 2021-22
% of value chain partners (by value of business done with
Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked) Employees such partners) that were assessed
Workers Health and safety practices -
Total recordable work-related injuries Employees Working Conditions -
Workers Not Applicable
No. of fatalities Employees 6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of
Workers health and safety practices and working conditions of value chain partners.
High consequence work-related injury or ill-health (excluding fatalities) Employees
Workers Not applicable.
106 107
PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders. towards society. The ESG policy framework of the Company, Discounting System) portals of the Government of India (GoI)
inter-alia, comprises environmental impact considerations and all offices of REC, including regional offices, are effectively
Essential Indicators in its operational, financial and risk management linked using the same and Company also promotes procurement
decision-making. Further, to ensure the financing of clean from MSEs & women entrepreneurs and extends certain
1. Describe the processes for identifying key stakeholder groups of the entity. energy, suitable conditions related to Environmental, Health, facilities in its procurement procedures to registered MSEs.
Safety and Social (EHSS) aspects, are being added in the loan It is also noteworthy, that there was no complaint against
Yes. The Company has mapped its internal and external stakeholders. Internal stakeholders include employees and staff of the
agreement/sanction. REC regarding delay in payments or any other grievance
Company; and external stakeholders include equity shareholders, bondholders, creditors, bankers, borrowers and customers from
by any MSE vendor, on Government of India’s Samadhan
both public and private sectors, Governmental bodies and regulatory authorities including State Government(s), Reserve Bank of
3. Provide details of instances of engagement with, and portal during the year. The Company also makes efforts on
India, Ministry of Corporate Affairs, Securities and Exchange Board of India, Stock Exchanges etc.
actions taken to, address the concerns of vulnerable/ a regular basis to reach out to those equity shareholders
2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group. marginalized stakeholder groups. and bondholders, who have unclaimed / unpaid dividends
amounts/shares or unclaimed redemption amounts lying
REC is registered on GeM (Government e-Marketplace), with the Company, so that such investors do not miss out on
Stakeholder Group Whether identified Channels of Frequency of Purpose and scope of
as Vulnerable communication engagement engagement including key Sambandh, Samadhan and TReDS (Trade Receivables getting their rightful dues.
& Marginalized (Email, SMS, (Annually/ Half yearly/ topics and concerns raised
PRINCIPLE 5 Businesses should respect and promote human rights.
Group (Yes/No) Newspaper, Quarterly / others – during such engagement
Pamphlets, please specify) Essential Indicators
Advertisement,
Community Meetings, 1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:
Notice Board,
Website), Other Category FY 2022-23 FY 2021-22
Shareholders No Email/SMS/Website/ On quarterly basis, Communication of financial Total (A) No. of % (B / A) Total (C) No. of % (D / C)
Letters/Telephone/ through AGM, Postal results, adoption of financial employees employees
Newspaper etc. Ballot and as and when statement and transaction of / workers / workers
required. ordinary and special business covered (B) covered (D)
from time to time. Employees
Permanent - - - - - -
Addressing requests/ Other than - - - - - -
grievances of shareholders permanent
from time to time. Total Employees - - - - - -
Bondholders No Email/SMS/Website/ As and when required. Allotment, Interest Servicing, Workers
Letters/Telephone/ Redemption Payment, Bond
Permanent
Newspaper etc. Certificate/Demat Credit.
Other than
Not Applicable
permanent
Addressing requests/
grievances of bondholders Total Workers
from time to time.
2. Details of minimum wages paid to employees and workers, in the following format:
Vendors No Email/SMS/Website/ As and when required. Vendor Development
Letters/Telephone Programmes are organised Category FY 2022-23 FY 2021-22
/GeM, Tender Wizard from time to time.
and other portals of Total (A) Equal to Minimum More than Total Equal to Minimum More than
Government. Wage Minimum Wage (D) Wage Minimum Wage
Customers No Email/SMS/Website/ On a regular basis. Customer Satisfaction Survey, No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Letters/Telephone 2022 conducted through Employees*
Administrative Staff College of Permanent
India, Hyderabad. Male
Not Applicable
Leadership Indicators Female
1. Provide the processes for consultation between the Company in its 498th Board Meeting held on January 30, Other than Permanent
stakeholders and the Board on economic, environmental, 2023 have approved Environment, Social & Governance (ESG) Male
Not Applicable
and social topics or if consultation is delegated, how is Policy of REC. Female
feedback from such consultations provided to the Board. Workers
2. Whether stakeholder consultation is used to support the
identification and management of environmental, and Permanent
The Company already has various Board-approved policies
in place, to address the economic, environmental, and social social topics (Yes / No). If so, provide details of instances Male
Not Applicable
topics relating to its business. The said policies have been as to how the inputs received from stakeholders on these Female
developed over a period of time based on the inputs from topics were incorporated into policies and activities of Other than Permanent
relevant stakeholders. the entity.
Male
Not Applicable
Further, to serve as a guiding document for all ESG initiatives During the financial year 2022-23, REC had approved its Female
and activities undertaken by REC, the Board of Directors of Environment Social and Governance Policy to contribute * all permanent employees are paid remuneration as per the guidelines of DPE which are higher than the minimum wages
108 109
3. Details of remuneration/salary/wages, in the following format: 10. Provide details of any corrective actions taken or 3. Is the premise/office of the entity accessible to differently
underway to address significant risks / concerns arising abled visitors, as per the requirements of the Rights of
Male Female
from the assessments at Question 9 above: Persons with Disabilities Act, 2016?
Number Median remuneration/ Number Median remuneration/
salary/ wages of salary/ wages of Not applicable. Yes, the corporate office premises are accessible to differently
respective category respective category abled visitors, with elevators and ramps, wheel chair accessible
LEADERSHIP INDICATORS
Board of Directors (BoD) 1 89,97,197 - - restrooms and direction signs in braille at various points.
Key Managerial Personnel 1 79,85,821 - - 1. Details of a business process being modified / introduced Further, the corporate website of REC Limited complies with
Employees other than BoD and KMP 332 27,43,211 63 28,59,602 as a result of addressing human rights grievances/ World Wide Web Consortium (W3C) Web Content Accessibility
Workers - - - - complaints: Guidelines (WCAG) 2.0 level AA. This will enable people
Notes: with visual impairments access the website using assistive
Not applicable.
1. The above schedule includes only permanent employees who have worked for the entire period of 12 months during the financial year 2022-23. technologies, such as screen readers. The information of the
2. Remuneration/salary/wages includes allowances exempt u/s 10 of the Income Tax Act, 1961 and Employer contribution towards Pension scheme. 2. Details of the scope and coverage of any Human rights website is accessible with different screen readers, such as
Further, it excludes employer’s contribution into REC Gratuity Fund, Leave Encashment Provision based on actuarial valuation, various reimbursements JAWS, NVDA, SAFA, Supernova and Window-Eyes. Further
due-diligence conducted:
given to employees for e.g. uniform, entertainment, conveyance, electricity, water and attendant charges and exempt medical expenses. information about the same can be accessed at https://
3. The above remuneration is paid in line with the guidelines issued by the DPE in this regard. Not applicable. recindia.nic.in/screen-reader-access.
4. The Company has not given any stock options during the financial year 2022-23.
4. Details on assessment of value chain partners:
4. Do you have a focal point (Individual / Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business? (Yes/No)
% of value chain partners (by value of business done with
Yes. such partners) that were assessed
5. Describe the internal mechanisms in place to redress grievances related to human rights issues: Sexual Harassment
Discrimination at workplace
Company has a detailed grievance redressal mechanism in place. Any aggrieved employee can sought relief through the said Child Labour
mechanism. The said policy is available to the employees on the intranet. -
Forced Labour/Involuntary Labour
6. Number of Complaints on the following made by employees and workers: Wages
Others - please specify
FY 2022-23 FY 2021-22
Filed during Pending Remarks Filed during Pending Remarks 5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments
the year resolution at the year resolution at at Question 4 above:
the end of year the end of year Not applicable.
Sexual Harassment
Discrimination at workplace PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment.
Child Labour ESSENTIAL INDICATORS
-
Forced Labour/Involuntary Labour
1. Details of total energy consumption (in Joules or 4. Has the entity implemented a mechanism for Zero Liquid
Wages multiples) and energy intensity, in the following format: Discharge? If yes, provide details of its coverage and
Other human rights related issues implementation:
REC is a NBFC and does not have any production /
7. Mechanisms to prevent adverse consequences to the workplace and upholds that career advancement is based on manufacturing facility, therefore its energy intensity is limited. As REC is not a manufacturing Company or a production
complainant in discrimination and harassment cases: talent and performance. However, REC has installed a 979kWp roof top solar plant, which company. However, the Corporate Office Building of REC,
has catered to around 50% of the total load requirement of located in Gurugram is zero liquid discharge building
Pursuant to the Whistle Blower Policy of the Company, necessary 8. Do human rights requirements form part of your business
agreements and contracts? (Yes/No) Corporate Office. The solar plant is functional and connected designed to use waste water drained after Reverse Osmosis
mechanism has been put in place to provide protection to the
to grid and has generated 13.19 lakh units of electricity. The (ROs), Solar cleaning, Toilets & floor washing & water bodies
complainant, wherever required. The Whistle Blower Policy is Business agreements and contracts are primarily in nature
building also has radiant cooling for slabs, Integrated Building etc. in HVAC / Chillers. Further, Building is designed to use
available at https://recindia.nic.in/uploads/files/Whistle_Blower_Policy.pdf. of loan documentation, which are executed on the basis
of specific terms sanctioned to Borrowers. Human right Management System (IBMS), automated sensor controlled water treated through STP, for Horticulture purpose.
REC believes that a sustainable organization rests on the requirements do not form part of said loan documents. To lighting, bio-climatic glass façade with motorized blinds, etc.
foundation of ethics and respect for human rights. The for energy saving. 5. Please provide details of air emissions (other than GHG
protect the human rights of employees, REC has adopted
Company ensures diversity and equal opportunities in employee-oriented policies, in line with general laws and emissions) by the entity, in the following format:
sound ethical practices. 2. Does the entity have any sites / facilities identified as
designated consumers (DCs) under the Performance, REC is not a manufacturing or a production company,
9. Assessments for the year: therefore air emission is negligible. Further, as a part of its
Achieve and Trade (PAT) Scheme of the Government of
India? (Y/N) If yes, disclose whether targets set under the appraisal process for all the power projects it finances, REC
% of your plants and offices that were assessed
(by entity or statutory authorities or third parties) PAT scheme have been achieved. In case targets have not identifies and assesses the potential environmental risks
been achieved, provide the remedial action taken, if any: of the projects. Environmental issues, if any, are identified
Child labour
through due diligence, site visits and review of applicable
Forced/involuntary labour Not Applicable.
compliances etc.
Sexual harassment
Not Applicable 3. Provide details of the following disclosures related to
Discrimination at workplace water, in the following format: 6. Provide details of greenhouse gas emissions (Scope 1 and
Wages Scope 2 emissions) & its intensity, in the following format:
REC is a NBFC and does not have any production / manufacturing
Others - please specify facility, therefore its water intensity is negligible. Not Applicable.
110 111
7. Does the entity have any project related to reducing The Company’s policies for renewable energy projects are hotspots, forests, coastal regulation zones etc.) where 4. Please provide details of total Scope 3 emissions & its
Green House Gas emission? If Yes, then provide details: reviewed from time to time, to meet the ever- evolving environmental approvals / clearances are required, intensity, in the following format:
needs of this dynamic sector. Till date, REC has funded please specify details in the following format:
Not Applicable. nearly 18.1 GW of renewable energy projects, to support Not Applicable.
the country’s movement towards a greener future for Sl. Location of Type of Whether the conditions of 5. With respect to the ecologically sensitive areas reported
REC in line with the Government’s outlook for renewable
the country. REC’s financing norms for renewable energy no. operations/ operations environmental approval at Question 10 of Essential Indicators above, provide
energy sector has been promoting competitive financing projects can be accessed from the corporate website at offices / clearance are being details of significant direct & indirect impact of the entity
for renewable projects. REC has introduced various policies https://recindia.nic.in/renewables. complied with? (Y/N) on biodiversity in such areas along-with prevention and
for competitive financing of clean energy projects across If no, the reasons thereof remediation activities:
REC is also the first Indian PSU to raise money from the
the country, including solar, wind, biomass projects and and corrective action
international markets through Green Bonds listed on Not Applicable.
e-mobility. The total sanctions for renewable energy projects taken, if any.
International Securities Market segment of London Stock
during the financial year 2022-23 were `21,371.11 crore Exchange in year 2017, with tenure of 10 years, the proceeds - - - - 6. If the entity has undertaken any specific initiatives or
towards 35 renewable energy projects, with aggregate of which are applied for financing or re-financing of eligible used innovative technology or solutions to improve
installed generation capacity of 6,488 MW. green projects as per the Climate Bond Standards. The Company is an NBFC with pan-India operations. Its resource efficiency, or reduce impact due to emissions
registered office is in New Delhi and corporate office is in / effluent discharge / waste generated, please provide
8. Provide details related to waste management by the entity, in the following format: Gurugram. The Company has regional/state offices across details of the same as well as outcome of such initiatives,
India, which are located in State capitals. Offices of the as per the following format:
Parameter FY 2022-23 FY 2021-22 Company are not located in ecologically sensitive areas.
Since your Company does not own any manufacturing facility,
Total Waste generated (in metric tonnes) 11. Details of environmental impact assessments of projects there are less significance of this question. However, REC
Plastic waste (A) 180 kg per month - undertaken by the entity based on applicable laws, in the Corporate Office Building located in Gurugram is designed
current financial year: and constructed by using energy efficient façade and radiant
E-waste (B) 140 units disposed off as 140 units identified to be
cooling slabs to lower about 30% HVAC load requirement
identified in previous year. disposed as e-waste. REC being a NBFC, finances infra projects but does not own or in the building in order to conserve energy. Further, 979
Bio-medical waste (C) - - execute/implement any project. kWp solar plant has been installed at top of the building
Construction and demolition waste (D) - - For renewable energy projects funded by REC, the Company (supported by solar pergola structure) to cater REC office load
requires the borrowers to submit Environmental and Social requirement by using clean and renewable source of energy.
Battery waste (E) - - The solar plant has generated 13.19 lakh units of electricity
Impact Assessment (ESIA) as per applicable rules and regulations.
Radioactive waste (F) - - during the financial year 2022-23, which has catered to
12. Is the entity compliant with the applicable environmental around 50% of the total load requirement of Corporate Office.
Other Hazardous waste. Please specify, if any. (G) - - law/ regulations/ guidelines in India; such as the Water
Other Non-hazardous waste generated (H). Please specify, if any. - - (Prevention and Control of Pollution) Act, Air (Prevention For minimizing paper consumption, REC uses ‘E-office’
(Break-up by composition i.e. by materials relevant to the sector) and Control of Pollution) Act, Environment protection act system in all its offices across the country. REC has actively
and rules thereunder (Y/N). If not, provide details of all used remote working methods through secure IT systems
Total (A+B + C + D + E + F + G + H) 180 kg per month and 140 units identified to
such non-compliances, in the following format: and processes, especially after onset of the pandemic, for
140 units disposed off as be disposed as e-waste.
ensuring business continuity while taking precautions for the
identified in previous year. REC is not a manufacturing company. Hence, the given
health of its employees.
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes) question has limited relevance. However, the Company
complies with applicable environmental regulations in 7. Does the entity have a business continuity and disaster
Category of waste respect of its premises and operations. The Company also management plan? Give details in 100 words/ web link:
(i) Recycled - - covers environmental concerns in the due diligence of the
projects it finances. Yes, REC has implemented Business Continuity and Disaster
(ii) Re-used - - Recovery Plan for its data center and disaster recovery
(iii) Other recovery operations - - LEADERSHIP INDICATORS operations and the same is also ISO 27001:2013 certified.
The Primary Data Centre (PDC) and Disaster Recovery Centre
Total 1. Provide break-up of the total energy consumed (in Joules
(DRC) of REC are ISO/IEC 27001:2013 certified and also comply
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes) or multiples) from renewable and non-renewable sources,
with National Cyber Security Policy of Government of India.
in the following format:
Category of waste REC has also implemented Data Leakage & Prevention (DLP)
REC has installed a 979kWp roof top solar plant in its corporate system at DC and DRC for preventing sharing of confidential
(i) Incineration - - office, to cater to its electricity requirement. The solar plant and critical information outside the corporate network.
(ii) Landfilling - - is functional and connected to grid and has generated 13.19 Further, REC has implemented IT security directives of RBI’s
(iii) Other disposal operations - - lakh units of electricity during the financial year 2022-23, Master Direction of IT Framework for NBFCs.
which has catered to around 50% of the total load requirement
Total - - of Corporate Office. The building also has radiant cooling Requisite training programmes have been conducted for the
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. for slabs, Integrated Building Management System (IBMS), teams to be prepared to respond in a crisis. Disaster drills and
Denotes number of IT units safely disposed which were identified last year i.e. FY 2021-22 for the disposal. automated sensor controlled lighting, bio-climatic glass façade table top exercises are conducted at regular intervals to test
with motorized blinds, etc. for energy saving. whether the set procedures are working as defined within
9. Briefly describe the waste management practices re-processors under Central Pollution Control Board,
the pre-defined RTO and RPO and people understand and
adopted in your establishments. Describe the strategy Government of India and State Pollution Control Committee/ 2. Provide the following details related to water discharged:
follow it appropriately. Such drills are audited through external
adopted by your company to reduce usage of hazardous Board Electronic waste, by following the procedure defined
and toxic chemicals in your products and processes and under REC’s Procurement Guidelines. Not Applicable. CERT-In (Indian Computer Emergency Response Team)
the practices adopted to manage such wastes. certified auditors. Observations received from such audits are
10. If the entity has operations/offices in/around ecologically 3. Water withdrawal, consumption and discharge in areas of
considered as a part of continuous improvements. The plan is
sensitive areas (such as national parks, wildlife water stress (in kilolitres):
Disposal of old, un-serviceable & obsolete IT equipment, reviewed at periodic intervals and the management and board
identified as e-waste, is done through registered recyclers/ sanctuaries, biosphere reserves, wetlands, biodiversity Not Applicable. are kept abreast of any developments or changes in the BCP.
112 113
8. Disclose any significant adverse impact to the installation of pollution control equipment, with total loan 2. Provide information on project(s) for which ongoing 3. (a) Do you have a preferential procurement policy
environment, arising from the value chain of the entity. amount of ₹1,647.08 crore. Rehabilitation and Resettlement (R&R) is being where you give preference to purchase from
What mitigation or adaptation measures have been taken undertaken by your entity, in the following format: suppliers comprising marginalized /vulnerable
by the entity in this regard: 9. Percentage of value chain partners (by value of business groups? (Yes/No)
done with such partners) that were assessed for Not Applicable.
REC is also financing installation of pollution control environmental impacts: Yes, REC has a policy to support public
3. Describe the mechanisms to receive and redress
equipment in thermal power plants, in line with procurement from MSMEs. The policy is available at
REC being a NBFC, does not own or execute/implement grievances of the community.
Government directives. This includes installation of Flue https://recindia.nic.in/uploads/files/RECPolicy-for-MSME-11022022.pdf.
Gas Desulphurization (FGDs), Selective Catalytic Reduction project. For renewable energy projects funded by REC, the
The Company has a Public Grievance Redressal system
(SCR) and Electrostatic Precipitators (ESP), which contribute Company requires its borrowers to get Environmental and for dealing with the grievances of the public at large. The (b) From which marginalized /vulnerable groups do
towards curbing of harmful emissions and particulate matter. Social Impact Assessment (ESIA) as per applicable rules and Company has appointed a senior official in this regard as the you procure?
During the financial year, REC has sanctioned 7 projects for regulations. Chairman, Public Grievance Committee, to ensure prompt
REC has made it mandatory to procure 100% of
redressal of grievances within the stipulated time frame.
PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible certain common use goods & services valuing
and transparent. 4. Percentage of input material (inputs to total inputs by upto ₹10 lakh from MSE vendors and also to allow
value) sourced from suppliers: purchase preference upto 25% of the tendered value
to MSEs, out of which 4% is reserved for MSEs owned
by SC, ST and 3% is reserve MSEs owned by women
1. a. Number of affiliations with trade and industry chambers/ associations: FY 2022-23 FY 2021-22
entrepreneurs for all cases where L1 vendor is other
Directly sourced from MSMEs/ 55.01% 36.60% than MSE vendors by allowing MSE vendors for
4 (Four)
small producers price matching with L1 if MSE bidders have quoted
b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the Sourced directly from within - - price within the band of L1+15%, wherever splitting
entity is a member of/ affiliated to: the district and neighbouring is feasible. The Company extends various facilities in
districts its procurement procedures to registered MSEs, such
Sl. Name of the trade and industry chambers/ associations Reach of trade and industry chambers/ as supply of tender sets free of cost, exemption from
no. associations (State/National) payment of earnest money etc.
LEADERSHIP INDICATORS
1. Central Board of Irrigation & Power (CBIP) National (c) What percentage of total procurement (by value)
1. Provide details of actions taken to mitigate any negative does it constitute?
2. World Energy Council (WEC), India National social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above): Government mandate is for minimum 25% from MSE
3. Standing Conference of Public Enterprises (SCOPE) National out of which 4% is to be from SC/ST vendors and 3%
Not applicable. from Woman vendors. For financial year 2022-23, REC
4. Press Club of India National 2. Provide the following information on CSR projects has achieved its MoU target set by Government of
undertaken by your entity in designated aspirational India for procurement from GeM (achieved 89.28%
2. Provide details of corrective action taken or underway on relating to the power sector through its social media handles. districts as identified by Government bodies: against the target of 25%) and for MSMEs (achieved
any issues related to anti-competitive conduct by the entity, 55.01% against the target of 25%). It is noteworthy
With dedicated efforts of many years, REC has contributed
based on adverse orders from regulatory authorities: Sl. State Aspirational Amount that the bifurcation of procurements from SC, ST and
towards achieving village and household electrification in
no. District spent (In women entrepreneurs, highly depends on the claims
No adverse orders were passed from regulatory authorities. the country, especially in the far-flung areas. The Company
crore) lodged by vendors, on which REC has no control.
has been the nodal agency for key power sector schemes
LEADERSHIP INDICATORS 1 Bihar Muzaffarpur 0.89
such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), 4. Details of the benefits derived and shared from the
1. Details of public policy positions advocated by the entity: Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) 2 Bihar Purnea 0.30 intellectual properties owned or acquired by your entity (in
and Ujwal DISCOM Assurance Yojana (UDAY). 3 Bihar Khagaria 0.34 the current financial year), based on traditional knowledge.
REC is a member of World Energy Council (WEC), which
functions under the patronage of MoP with the support of REC is currently playing the role of nodal agency for 4 Manipur Chandel 0.54
Revamped Distribution Sector Scheme (RDSS). In this regard, 5 Mizoram Mamit 8.25 Not applicable.
energy ministries and leading organizations in the energy
sector. It is chaired by Secretary, Power with Secretaries of REC’s wholly owned subsidiary, REC Power Development 6 Nagaland Kiphire 2.56 5. Details of corrective actions taken or underway, based
MoPNG, Coal, MNRE, MEA and CEA, Department of Atomic and Consultancy Limited (RECPDCL) is doing significant 7 Uttarakhand Shrawasti 0.15 on any adverse order in intellectual property related
Energy acting as Vice Chairman of the body. The Board of work in the fields of smart metering, 11 kV Rural Feeder disputes wherein usage of traditional knowledge is
8 Sikkim West Sikkim 5.00
Directors and Senior Officials of REC contribute towards the Monitoring Scheme and other Government Programs. involved.
formulation of various policies relating to power sector, as 9 Himachal Pradesh Chamba 0.63
A Regulatory Compliance and Monitoring Cell has been 10 Karnataka Yadgir 0.43 No adverse orders were passed in relation to intellectual
part of various committees/working groups constituted by
established for supporting the distribution utilities for property related disputes.
Ministry of Power, Government of India. Total 19.09
such works. REC has begun publishing a compilation of
The Company has advocated for clean technology, energy “Key Regulatory Parameters of Utilities” booklet. Further,
efficiency and renewable energy through various platforms from Consumer Service Rating of DISCOMs (CSRD) report is also
time to time. The Company raises public awareness on matters being published by REC.
PRINCIPLE 8 Businesses should promote inclusive growth and equitable development.
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year:
Not Applicable.
114 115
6. Details of beneficiaries of CSR Projects: Sl. no. Purpose of CSR Funding No. of persons benefitted % of beneficiaries
from CSR Projects from vulnerable and
Sl. no. Purpose of CSR Funding No. of persons benefitted % of beneficiaries
marginalized groups
from CSR Projects from vulnerable and
marginalized groups 21 Strengthening cancer screening and basic cancer care services in 1,00,000 100%
14 districts of Bihar.
1 Providing Safe Drinking Water facility in rural areas in 15 villages 10,000 100%
of three states. 22 Repair of the 132 toilets in the Government Schools constructed 4,000 100%
under REC CSR support.
2 Construction of Building in SVNIRTAR to establish the Institute as a 2,000 100%
‘REC Centre of Excellence for Deformity Correction’. 23 Construction of 140 bedded home (Block-B & Part Block-C of 140 100%
Construction of elevator room & installation of elevator at OPD Anandam) - A home for the homeless sick, destitute, unknown &
3 2,000 100%
building & Gynaecology building Civil Hospital. elderly people.
4 Providing better health facilities to leprosy affected and other 50,000 100% 24 Renovation 50 nos. Anganwadi Centers (AWCs) and providing 18,000 100%
poor people by constructing and equipping operation theatre containers for storing food grains, LPG gas connection & setting
and maternity block in The Leprosy hospitals. up of Antenatal care corners in 1,125 nos. AWCs.
5 Installation of 275 nos. of hand pumps in district Shrawasti. 2,750 100% 25 Procurement, installation & commissioning of Digital Substraction 100 100%
Angiography machine.
6 Installation of 250 hand pumps in district Allahabad. 2,500 100%
26 Installation of oxygen generation plant and DG set at Civil 200 100%
7 Construction & renovation of Gandhi Memorial Hospital (a 1,00,000 100% Hospital, Dalhousie.
Government Hospital) affiliated to Shyam Shah Medical College in 27 Procurement, installation & commissioning of Neuro navigation 200 100%
Rewa (unspent amount refunded). (Cranial + Spinal) machine.
8 Supporting for installation of 20 nos. of water ATM machines at 10,000 100% 28 Setting up 2 Nos. of electrical cum gas operated (Hybrid) 200 100%
Kumbh Mela site & at various iconic places in India. Crematorium.
9 Construction of 12 kms road from Yaingangpokpi to Laikoiching in 10,000 100% 29 Up-gradation of the District Hospital, Mon by procurement of the 2,000 100%
Ukhrul district, Manipur. medical equipment.
10 Adopting a slum for ensuring cleanliness of the slum-drinking 500 100% 30 Establishment of Oxygen ventilators, ALS Ambulance, and ICU 2,000 100%
water, sanitation, toilets, IEC campaigning, etc. under Swachhta
patients beds at Govt. Charak Hospital, Ujjain.
Action Plan (SAP).
31 Setting up of 10 Bedded ICU for paediatric and neo natal section, 2,000 100%
11 Training for manufacturing affordable sanitary napkin and 1,000 100% Medical equipment for 20 bedded service in District Hospital.
awareness generation on menstrual hygiene amongst rural girls/
32 Procurement, installation and commissioning of 32 slice CT Scan 500 100%
adolescents/ women.
Machine at New District Hospital.
12 Transformation of health by providing nursing training, 10,000 100%
33 Upgrading the Uro Science Centre for Kidney Transplant in Sardar 200 100%
infrastructure support in district hospital, strengthen hospital
Patel (SP) Medical College, Prince Bijay Singh Memorial (PBM)
staff to improve maternal & child health care, procurement of
Hospital.
generators, infrastructure development etc.
34 Improving Screening for Cervical Cancer 4,000 100%
13 Construction / extension of staff quarter for medical department 10,000 100% through Empowering Communities.
and Modular prefabricated housing (quarter) for teachers.
35 Survey and repair of 12,347 toilets constructed during 2014-15 4,00,000 100%
14 Installation of 200 nos. of Reverse Osmosis water treatment plant 9,000 100% under Swachh Vidyalaya Abhiyan (SVA) by REC in 5 states Uttar
with overhead storage tank and electrical pump in 200 nos. of Pradesh, Bihar, Rajasthan, Telangana and Madhya Pradesh.
Aanganwadi Kendra/ primary school. 36 To reduce the prevalence of Gender-Based Violence (GBV) in the 200 100%
15 Construction of Sewage Treatment Plant in Advanced Center 10,000 100% urban slums of Mysore (Karnataka) and Bareilly (UP).
for Treatment, Research and Education in Cancer (ACTREC), Tata 37 Procurement and installation of medical equipment to strengthen 5,000 100%
Memorial Center. health care service in B.K. Civil Hospital, Faridabad.
16 Providing food to migrant labourers/ family members engaged at NA NA 38 Procurement of 15 nos. of ambulances to be run in tribal areas of 5,000 100%
construction/ sub stations, poor people, daily wage labourers etc. various districts in Madhya Pradesh.
due to lockdown in view of the outbreak of pandemic corona virus 39 Improving cleanliness and public conveniences in and around 7 100 100%
COVID-19. Chhath Ghats and ensuring covid appropriate behaviour.
17 Distribution of 3400 nos. of aids and appliances to specially-abled 3,400 100% 40 Setting up of 20 bedded ICU facility in District Hospital and multi 200 100%
persons across the country. gas pipeline facility in the District Hospital.
18 Procurement, installation & commissioning of blood bank 5,000 100% 41 Installation of various Medical equipment’s at Kamptee Cantt 500 100%
equipment/items at Indian Red Cross Society (IRCS). Board Hospital.
42 Providing medical equipment at various government hospitals in 2,000 100%
19 Distribution of approx. 9,000 aids & assistive devices to persons 9,000 100%
Alwar.
with disabilities by conducting camps at 25 locations in various
districts in the country. 43 Modernization and Digitization of Psychiatric Rehabilitation 1,000 100%
Services.
20 Strengthening health facilities by providing medical equipment, 1,000 100%
44 Procurement, operation and maintenance of 10 nos. of mobile 5,000 100%
ambulances, air conditioners, RO water plants, generator set,
health clinics for primary health care services.
laptop, projector and office chairs in various Community Health
Centres and Primary Health Centres.
116 117
Sl. no. Purpose of CSR Funding No. of persons benefitted % of beneficiaries Sl. no. Purpose of CSR Funding No. of persons benefitted % of beneficiaries
from CSR Projects from vulnerable and from CSR Projects from vulnerable and
marginalized groups marginalized groups
45 2-days free Health Camp on Sept 17-18, 2022 in Barhara block, 1,400 100% 63 Job-oriented Skill development training to 360 nos. of beneficiaries 360 100%
Bhojpur. belonging to SC/ST/OBC/Women/ EWS etc.
46 Construction of 500 nos. toilet blocks at work place of BSF troops 5,000 N/A 64 Improving quality of education through Demonstration Vans and 3,000 100%
in Gurdaspur, Amritsar, Ferozpur and Abhohar. Smart Teaching.
47 Provide 4,300 nos. of aids and appliances to specially-abled 4,300 100% 65 Providing firefighting equipment in a building for providing value 500 100%
persons. education.
48 Construction of 100 bedded ‘REC Vishram Sadan’ (G+3) at District 100 100% 66 Operating mobile school for imparting free education to 462 462 100%
Hospital. children of migrant construction labourers in Gurugram, Haryana
49 Contribution to PM CARES Fund. NA NA and Hardoi, Uttar Pradesh.
Expanding infrastructure for SSMI school. 67 Construction of 2 hostel tower (G+8) with furniture, fixtures, NA NA
50 550 100%
landscaping, external lighting & approach road for post graduate
51 Construction of compound walls and providing gates in 24 nos. of 1,200 100% students and installation of grid connected 100kWp roof top solar
Government Schools. PV Panel under School of Medical Research and Technology.
52 Raising young innovators through the conceptual research 1,800 100%
experience to 1,800 students and 150 teachers. 68 Construction of hostel building for Scheduled Tribes/ vulnerable/ 100 100%
weaker section of the society in Kelwada (Kumbhalgarh) village.
53 Transforming school education by providing projectors, water 3,000 100%
facilities, furniture, white boards & markers, infrastructure support 69 Installation of 0.25 MW SPV system and LED lights at various 200 100%
in schools & hostels, improvement of science laboratories, etc. locations at Sambalpur University Campus.
54 Transforming school education by providing equipment, teachers’ 5,000 100% 70 Installation of solar roof-top power panel and micro grids under 5,000 100%
training, increasing female literacy, providing drinking water in Smartgram project.
Government schools, etc. 71 Installation of 50KWp grid connected solar PV at Information 50 100%
55 Transforming school education by upgrading the infrastructure of 3,000 100% Technology Institute for the Tribes of India (ITITI).
15 Government primary schools, 1 Government higher school & 72 Installation of 1 MWp SPV system at various locations at campus of 800 100%
1 Government senior secondary school by repairing, renovating Madurai Kamaraj University.
classrooms, redesigning kitchen, boundary walls, electrical wiring/
providing internet, procurement of water cooler, almirahs, cutlery, 73 Setting up 1,650 nos. of Solar Street Lights in rural and tribal areas. 10,000 100%
converting class rooms in to smart class rooms, providing play Establishment of biodiversity and wildlife conservation laboratory
74 500 60%
equipment, school library, science/ mathematics laboratory, etc. and training center.
56 Strengthening of Science and computer laboratories by providing 2,200 100% Setting up 500 nos. of Solar Street Lighting system of 12 Watt with
75 3,000 100%
lab equipments, information & communication technology Remote Monitoring System (RMS).
equipments & refurbishment of infrastructure in 7 nos. for
Government schools, conversion of 60 nos. of class rooms into 76 Contribution to Clean Ganga Fund. NA NA
Digital class rooms in 60 nos. of Government Schools and
77 Development of rural areas by deepening of wells, renovation & 500 100%
installation of 43 nos. of 50 LPH Reverse osmosis water treatment
construction of check dams and organizing medical camps.
system in 43 nos. of Government Schools.
78 Construction of multipurpose hall cum indoor stadium in Somdal 100 100%
57 Job oriented Skill Development training to 1,100 unemployed 1,100 100%
village of Ukhrul district.
youths belonging to SC/ST/OBC/Women/Minority/ EWS/
Underprivileged. 79 Rural Development Works like construction of community hall, 10,000 100%
58 Job oriented skill development training to 1,000 nos. of 1,000 100% PCC Road, Conduits, Yatri Shed, installation of LED Lights, RO
beneficiaries belonging to economically weaker section. Plants etc.
59 Skill development training and distribution of equipment kit for 500 100% 80 Construction of 3 community center with toilet complex in 3 300 100%
self-employment to 500 nos. of women belonging to economically villages.
weaker section.
60 Transforming school education in West Sikkim by strengthening 5,000 100% 81 Construction of 4 nos. of community hall/centre in 4 villages of 400 100%
school library, science laboratory, organizing science & technology Patan and Nainwa block of Bundi.
fair, recruitment of mathematic teachers, providing smart class, 82 Construction of Community Hall at Asufii Punanamei Mao. 100 100%
renovation of hostel, providing furniture, training of teachers &
exposure visit of teachers & students etc. 83 Construction and operation of shelter home with wellness facility 60 100%
(60 seaters) for the care of the elderly.
61 Construction of auditorium in Government Higher Secondary 250 100%
School. 84 Construction of REC Motorsports Race Track and Sports Complex. 100 100%
62 Job oriented skill development training to 2,500 nos. of people 2,500 100% 85 Broad basing of Sports and promotion of excellence in sports 2,500 100%
belonging to SC/ST/OBC/Women/Minority/EWS at various in India.
locations.
118 119
PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner details of regional offices/Sr. CPMs/CPMs are available platform for State power distribution utilities, to disseminate
at https://recindia.nic.in/contact. The Company has also power outage information to urban and rural power consumers
ESSENTIAL INDICATORS displayed consumer awareness literature on its website at across India through SMS, email or push notifications.
https://recindia.nic.in/financial-products.
1. Describe the mechanisms in place to receive and respond 2. Turnover of products and/ services as a percentage of turnover 4. Does the entity display product information on the
to consumer complaints and feedback. from all products/service that carry information about: REC had developed DISCOM Consumer Service Rating based product over and above what is mandated as per local
on four key dimensions (operational reliability; connection laws? (Yes/No/Not Applicable) If yes, provide details in
Being a NBFC, the Company has adopted a Fair Practices Code As a percentage and other services; metering, billing, collection linked brief. Did your entity carry out any survey with regard
in line with the statutory requirements prescribed by RBI. The to total turnover services; fault rectification and grievance redressal) which to consumer satisfaction relating to the major products /
Code covers in detail a grievance redressal mechanism for are central to enhancing level of consumer services. This services of the entity, significant locations of operation of
Environmental and social parameters Not Applicable
consumers to submit their complaints if any. The Board of will enable the DISCOMs to introspect their performance the entity or the entity as a whole? (Yes/No)
relevant to the product
Directors periodically reviews the status of compliance of Fair across various service parameters, undertake a comparative
Safe and responsible usage 100% performance assessment with peer DISCOMs and take The Company is a NBFC offering financial products, hence
practices code and also grievances received under the same.
Recycling and/or safe disposal Not Applicable corrective measures. The Key objectives for the Consumer it is ensured that adequate disclosures of all its financial
For the financial year 2022-23, no complaints were received
Service Index are: products offered are made to its borrowers/customers
under the Fair Practices Code. The products of the Company are mainly loans for the power and to its investors through the corporate website at
sector and hence, the necessary terms & conditions and • To create a minimum set of parameters related to quality
The Fair Practices Code of REC can be accessed at https:// https://recindia.nic.in/financial-products. Also during the
other legally binding clauses etc. are incorporated in the loan and reliability of electricity supply and consumer service
recindia.nic.in/uploads/files/Fair-Practices-Code.pdf loan approval process we undertake declaration regarding
documentation in each case. • Track performance of DISCOMs across these aspects knowing of full details of the type of loan applied.
3. Number of consumer complaints in respect of the following: over a period of time
Being a NBFC, the Company also adheres to Fair Practices
FY 2022-23 Remarks FY 2021-22 Remarks • Develop a spirit of healthy competition amongst Code mandated by RBI, which sets out the fair lending
DISCOMs to enhance consumer experience practices to be followed with borrowers, in matters relating
Received Pending Received Pending
to application for loans and their processing, loan sanction,
during the resolution at during the resolution at • Nudge the DISCOMs to assess the gap areas, share
disbursement, post-disbursement supervision and grievance
year end of year year end of year best practices and promote inter-se learning.
redressal mechanism etc. The Fair Practices Code is available at
Data privacy - - - - - Further, REC has an in-house training institute REC Institute https://recindia.nic.in/uploads/files/Fair-Practices-Code.pdf.
Advertising - - - - - of Power Management and Training (RECIPMT), which
The Corporation continuously conducts customer
Cyber-security - - - - - caters to the training and development needs of engineers
satisfaction surveys to seek feedback from its borrowers at
Delivery of essential - - - - - and managers of power sector organizations across the
various stages of the loan transaction such as at the time of
services country and beyond. RECIPMT undertakes various training
the loan application, approval, disbursement and closure.
Restrictive Trade - - - - - programmes including on electrical safety, techno commercial
This feedback is used to improve systems, processes and
Practices improvement of DISCOMs performance, sustainability of
enable better focus on training and development of staff.
Unfair Trade - - - - - power utilities etc.
REC has conducted Customer Satisfaction Survey 2022 of
Practices In order to promote innovation and technology practices its esteemed customers across the country, comprising of
Other: Consumer 1 0 The said matter 4 3 4 Consumer cases were in the distribution sector, REC put in place a framework to Central and State Government power entities and private
Cases was disposed received during FY 2021-22 enable Artificial Intelligence / Machine Learning Use cases players in power space, through Administrative Staff College
as the same was of which 3 cases, filed by in power distribution. Pilot projects are being supported of India, Hyderabad. The overall Customer Satisfaction
withdrawn by the investors, are pending through IITs and Technology Service Providers. Index (CSI) score of the survey was 80%, reposing faith and
consumer resolution confidence in the customer-friendly services being extended
3. Mechanisms in place to inform consumers of any risk of by REC to its borrowers.
4. Details of instances of product recalls on account of safety LEADERSHIP INDICATORS disruption/discontinuation of essential services.
issues: 5. Provide the following information relating to data breaches:
1. Channels / platforms where information on products and REC has implemented Business Continuity and Disaster Recovery
Number Reasons for recall services of the entity can be accessed (provide web link, if Plan for its data center and disaster recovery operations and is a. Number of instances of data breaches along-with
Voluntary recalls - - available). also ISO 27001:2013 certified. impact
Forced recalls - - REC offers a gamut of financial services to the entire Further, under the guidance of Ministry of Power, REC’s wholly b. Percentage of data breaches involving personally
power and infrastructure & logistics sector value chain, for owned subsidiary, viz. REC Power Development and Consultancy identifiable information of customers
5. Does the entity have a framework / policy on cyber setting up power infrastructure in generation, transmission Limited (“RECPDCL”) has implemented the Urja Mitra App,
security and risks related to data privacy? (Yes/No) If Such instances were Nil for the financial year 2022-23.
& distribution, bolstering operational efficiency and which provides a Central Outage Management and notification
available, provide a web-link of the policy. implementing innovative technology solutions, by financing
The Company has a comprehensive risk management policy State power utilities, State Governments and private sector
which essentially covers cyber security and related aspects. power developers. The product portfolio, interest rates
The policy is an internal document of the Company available and related information for customers is available on the
Company’s website at https://recindia.nic.in/financial-products. For and on behalf of the Board of Directors
on its intranet.
6. Provide details of any corrective actions taken or 2. Steps taken to inform and educate consumers about safe
underway on issues relating to advertising, and delivery and responsible usage of products and/or services.
of essential services; cyber security and data privacy of Chairman & Managing Director
customers; re-occurrence of instances of product recalls; REC has a pan-India presence, with regional offices across
(DIN: 01377212)
penalty / action taken by regulatory authorities on safety the country. At each regional office, the Senior Chief Program
Place : Gurugram
of products / services. Manager/Chief Program Manager (CPM) is the single point of
contact for all borrowers in the State and for any concern over
Not Applicable. the products and services offered by the Company. Contact
120 121
ANNEXURE TO BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT ANNEXURE-IV TO BOARD’S REPORT
P1 Businesses should conduct and govern themselves with Ethics, Transparency and Accountability
REC conducts its business activities with utmost importance to ethics, transparency and accountability. The various policies, codes
Integrated Report
and rules framed in this regard include:- An Integrated Report is a concise communication about an the Department of Public Enterprises (DPE) and the administrative
Name of the Policy Weblink organization’s strategy, governance, performance and prospects, in ministry. The performance of the Company in terms of MoU signed
the context of external environment leading to creation of value over under the guidelines of the DPE, Government of India for the
Internal Guidelines on Corporate https://recindia.nic.in/uploads/files/Final---Internal-Guidelines-on-Corporate-Governance.pdf short, medium and long term. It provides insight about the resources
Governance financial year 2023 is likely to be excellent, subject to final evaluation
and relationships used by an organization and seeks to explain
by DPE. For the financial year 2021-22 MoU rating of REC has been
Policy for Prevention of Fraud https://www.recindia.nic.in/uploads/files/Revised-Fraud-prevention-policy-of-REC-13082020.pdf how an organization creates value over time. An Integrated Report
"Very Good", primarily due to a newly introduced parameter of stock
Whistle Blower Policy https://www.recindia.nic.in/uploads/files/Whistle_Blower_Policy.pdf enhances transparency and accountability, by disclosing a holistic
view of value created by an entity beyond the financial capital, price performance.
Code of Business Conduct and Ethics https://www.recindia.nic.in/uploads/files/Code_Business_Conduct_Ethics.pdf contributing to the economic, social and environmental system. The governance framework of REC complies with the statutory
Fair Practices Code https://recindia.nic.in/uploads/files/co-cs-fair-practic-code-dt020523.pdf REC has prepared this report voluntarily on the basis of International requirements of applicable laws and regulations, except for a
Policy on Materiality of Related Party https://www.recindia.nic.in/uploads/files/cs-policy-on-related-party-transactions-dealing- Integrated Reporting Council (IIRC) framework, relying on business
shortfall in appointment of Independent Directors, which has been
Transactions and Dealing with Related with-rpt-dt230719.pdf disclosures through six capitals that guide businesses in long term
decision making and planning. explained in the Report on Corporate Governance. Being a NBFC, the
Party Transactions
Company also complies with various directives of Reserve Bank of
Code of Conduct for Regulating, https://www.recindia.nic.in/uploads/files/cs-revised-insider-trading-code-submitted-to- India (RBI). REC’s Internal Guidelines on Corporate Governance, which
Monitoring and Reporting of Trading stock-exchanges-dt070619.pdf
codify its governance philosophy and framework, can be accessed
by Designated Persons and their
Immediate Relatives and for Fair at https://recindia.nic.in/uploads/files/Final---Internal-Guidelines-
Disclosure on-Corporate-Governance.pdf REC has posted an impressive
Policy on ‘fit & proper’ criteria of https://recindia.nic.in/uploads/files/Amended---Policy-on-Fit--Proper-Criteria.pdf performance during the financial year 2022-23, as detailed below:
Directors
In addition to the above, there are other policies and rules, which are internal documents of the Company and are accessible to the
employees of the Company on Intranet.
P2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
The Company is a NBFC offering financial products, which include loans to renewable energy projects for environmental sustainability.
Details of the Company’s products & services are available at https://recindia.nic.in/financial-products
Further, CSR Policy of the Company is available at https://recindia.nic.in/uploads/files/REC-CSR-Policy-07-12-2021.pdf
P3 Businesses should promote the well-being of all employees
The Company has adopted various employee-oriented policies in line with the general laws and regulations and sound ethical practices.
Such policies are normally approved by the Board of Directors and are accessible to the employees of the Company on the intranet.
P4 Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged,
vulnerable and marginalized
The Company respects the interest of all its stakeholders, including those who are disadvantaged, vulnerable & marginalized. The
Company works towards inclusive growth through its CSR Policy approved by the Board of Directors. The CSR Policy is available at
https://recindia.nic.in/uploads/files/REC-CSR-Policy-07-12-2021.pdf
P5 Businesses should respect and promote human rights
The Company is a Non-Banking Financial Company (NBFC) categorized
REC strives to safeguard and uphold human rights in all ways possible. The Company has a Code of Business Conduct & Ethics for its
Board Members and Senior Management, which, inter-alia, casts moral imperative on the members of senior management to keep as Infrastructure Finance Company (IFC), lending the gamut of
in mind the safety and protection of human life and environment and also to avoid discrimination on any grounds. The said Code is activities in power sector including generation, transmission &
available at https://recindia.nic.in/uploads/files/Code_Business_Conduct_Ethics.pdf distribution, for renewable as well as conventional sources of energy,
P6 Businesses should respect, protect and make efforts to restore the environment in public as well as private sector. Further, during the financial year
As a financial institution in the power sector, REC has been increasingly supporting the development of renewable energy space. REC’s 2022-23, with approval of shareholders, the mandate of Company
financing norms for renewable energy are available at https://recindia.nic.in/renewables
has been extended to lend to non-power Infrastructure and logistics
P7 Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner sector to contribute to the accelerated development of our nation.
REC plays an active and responsible role in matters concerning public & regulatory policy. Further, REC’s interactions with public at REC aspires to increase the share of clean energy portfolio to around
REC also acts as nodal agency, project implementation/management 30% of its loan book by March 2030 and the same will be achieved
large can be followed through its various social media handles.
agency for various Government programmes of national importance. through investment in the six capitals namely Financial Capital,
P8 Businesses should support inclusive growth and equitable development
REC is a Government company and comes under control of Ministry Manufactured Capital, Intellectual Capital, Social & Relationship Capital,
REC has various policies to support inclusive growth and equitable development of all its stakeholders, including public procurement
policy for MSMEs (https://recindia.nic.in/uploads/files/RECPolicy-for-MSME-11022022.pdf ), equal opportunity policy for its employees of Power (MoP), Government of India. Since the financial year Human Capital and Natural Capital, which are explained hereinafter.
(available on REC intranet), attractive lending rates for green-energy projects (https://www.recindia.nic.in/renewables) and also CSR
2018-19, the Company’s majority equity stake is held by Power Financial Capital
policy (https://recindia.nic.in/uploads/files/REC-CSR-Policy-07-12-2021.pdf ).
Finance Corporation Limited (PFC), Central Public Sector Enterprise
P9 Businesses should engage with and provide value to their customers and consumers in a responsible manner Financial Capital, in respect of REC, refers to the pool of funds
(CPSE) under the aegis of MoP. REC’s yearly targets are set by way of
REC has a Board-approved ‘Fair Practices Code’ in place, to ensure that fair and transparent practices are followed by the Company available for use in the provision of its services, i.e., lending to power
while dealing with customers in its lending operations. The Code is available at https://www.recindia.nic.in/uploads/files/Fair- a Memorandum of Understanding (MoU) entered with PFC (earlier
Practices-Code.pdf with MoP), which are evaluated through a mechanism established by and Infrastructure & Logistics sector.
All policies & processes are reviewed by the Board of Directors/senior management from time to time.
122 123
As on March 31, 2023, the total resources of the Company stood at ₹4,64,877.13 crore and the breakup of same is as under: Human Capital Natural Capital
Resources Deployment Company has professionally qualified, experienced and skilled REC always endeavors to protect environment by minimizing
workforce along with congenial culture and supportive environment, consumption of natural resources and also by minimizing wastage
₹2,633.22 crore which not only motivates its human capital but also retains them. of the same. As a leading financing organization in power sector,
Equity The Company has a robust system to ensure effective management REC has been consistently improving its renewable energy portfolio.
of human resources and to enhance their productivity. The human During the financial year 2022-23, inter-alia the Company sanctioned
₹558.40 crore ₹4,60,591.12 crore
Financial assets including resources are trained on the organization’s mission and policy loans aggregating to ₹21,371.11 crore towards 35 renewable energy
Perpetual Debt Instruments framework right from the beginning. At work also, sharpening of projects, with total generation capacity of 6,488 MW. Till date, REC has
long term / short term loans
skills and business acumen is given a special focus, through various funded nearly 18.1 GW of capacity under renewable energy projects
Total ₹4,285.67 crore
₹54,488.05 crore training & development programmes. REC’s HR pool is diversified supporting a greener future for the country.
Reserves & Surplus Resources Property, plant & equipment,
tax assets with representation of various categories. REC empowers its women
₹4,64,877.13 crore REC has prepared Environmental Social Impact Analysis (ESIA) report
employees through various initiatives and policies; and endeavors
under Official Development Assistance - KfW-III which is applicable
₹4,06,987.95 crore ₹0.34 crore towards gender parity, promoting a fruitful work environment
Borrowings & Other Financial Assets classified as held for financing renewable energy projects. The same serves as the
making it conducive for its employees to grow as professionals
Liabilities for sale roadmap for REC to address environmental & social issues in financing
and as individuals. Work life balance is given special focus through
renewable power projects.
welfare-oriented policies. Regular health checkups for employees
₹209.51 crore
Other Non-financial Liabilities and talks on preventive health issues are organized from time to REC is also financing installation of pollution control equipment
time. The Company has a well-equipped gymnasium at its corporate in thermal power plants, in line with Government directives. This
Given the nature of business of the Company, borrowings form Owing to its nature, REC’s asset use is limited to IT & communication office for its employees. The Company always motivate employees includes installation of Flue Gas Desulphurization (FGDs), Selective
the most substantial part of source of funds, including Institutional infrastructure and office supplies. Further, all material requirements for participation in various sports, cultural and literary events, which Catalytic Reduction (SCR) and Electrostatic Precipitators (ESP), which
Bonds, Foreign Currency Borrowings, FCNR (B) Loans, Capital Gain are sourced as per Procurement Guidelines of the Company, including also promote their overall development. contribute towards curbing of harmful emissions and particulate
Bonds, Tax Free Bonds, Infra Bonds, Commercial Paper and loans through GeM (Government e-Marketplace) portal. Social and Relationship Capital matter. During the financial year, REC has sanctioned total loan
from banks, financial institutions & multilateral agencies. Raising of amount of ₹1,647.08 crore for installation of pollution control
The Company uses revamped Business ERP containing advanced REC is not only a financial institution, but an organization striving
funds at competitive rates forms the basis of profitability in financing equipment in 7 thermal power projects.
features and the ERP system is continuously improved as per for overall development of Indian power sector and the country as
business. REC has been raising funds at consistently competitive The ESG policy framework of the Company, inter-alia, comprises
requirements of the Company. The ERP hardware is migrated to a whole and now it has extended its footstep in the Infrastracture
rates. The overall weighted average annualized cost of funds for the environmental impact considerations in its operational, financial
private cloud environment at REC Datacenter. The Company has & Logistics sector also. Being a nodal agency of the Government
outstanding borrowing as on March 31, 2023 was 7.28%. REC also revamped its network and security devices to meet the requirement and risk management linked decision-making. Further, to ensure
of India Revamped Distribution Sector Scheme (RDSS) and other
enjoys “AAA” rating from CRISIL, CARE, India Ratings & Research and of operations. The secured VPN network facilitates remote location the financing of clean energy, suitable conditions related to
schemes, the Company has contributing the collective development
ICRA for its domestic debt instruments and international rating of access to critical business applications for seamless operations. The Environmental, Health, Safety and Social (EHSS) aspects, are being
agenda of the Government.
“Baa3” and “BBB-” rating from Moody’s and FITCH respectively, which Primary Data Center and Disaster Recovery Center of REC is ISO/ added in the loan agreement/sanction.
is at par with the sovereign rating of India. The deployment of these REC is also supporting various social causes through its CSR arm,
IEC 27001:2013 certified and comply with National Cyber Security
resources is done primarily in the form of loans sanctioned by the CSR Foundation. During the financial year 2022-23, REC spent REC has installed a 979 kWp (kilowatts peak) rooftop solar plant on
Policy of Government of India. REC has also implemented IT security
Company towards various projects of power and Infrastructure more than ₹210 crore towards various CSR projects, including its corporate office building, to cater to its electricity requirement.
directives of RBI prescribed for NBFCs. The Company was one of the
& Logistics sector. As on March 31, 2023, REC’s loan portfolio was contribution of ₹50 crore towards PM CARES Fund, development The building also has energy saving features like radiant cooling
early adopters of ‘e-office’ system amongst power sector PSUs, which
categorized as 39% into generation projects, 11% into transmission of various aspirational districts, distribution of aids to Divyang for slabs to reduce power consumption for air conditioning by 30%,
facilitates paperless working. Further, the website of the Company is
projects, 37% into distribution projects, 7% into renewable energy persons, supporting studies and basic necessities for disadvantaged Integrated Building Management System (IBMS), automated sensor
user friendly, dynamic, interactive, STQC certified and complies with
projects and 6% in STL/RBPF. students and construction of multipurpose community hall, controlled lighting and bio-climatic glass facade with motorized
the Guidelines for Indian Government Website (GIGW).
vishram sadan and toilets, to name of a few. REC has also supported blinds. The plant has generated 13.19 lakh units of electricity during
Further, 90% of REC’s loan portfolio is in State sector schemes/ Intellectual Capital the development of sports facilities across India, emphasizing on the financial year 2022-23, which has catered to around 50% of the
projects and 10% in private sector projects. Non-Performing Assets badminton, boxing and athletics. total load requirement of the building.
(NPAs) of REC are one of the lowest in the industry. Through its The Company has deployed a number of in-house developed systems
financial capital, REC has been able to create value not only for its as part of its IT initiatives, towards achieving better e-governance.
shareholders and investors, but for overall development of country. Further, the Company has implemented Data Leakage & Prevention
REC has maintained its profitability and is also consistently paying (DLP) system at Data Center and Disaster Recovery Center for
dividend to its shareholders. preventing sharing of confidential and critical information outside
For and on behalf of the Board of Directors
the corporate network. Since 1979, REC has under its umbrella,
Manufactured Capital a training institute i.e., REC Institute of Power Management and
Training (RECIPMT), dedicated for training human resources of power
Being a NBFC, REC does not own any manufacturing facility. Vivek Kumar Dewangan
sector in technical as well as non-technical areas. RECIPMT has been Chairman & Managing Director
However, the Company is a pioneer institution in the field of engaged by Ministry of Power and various power sector organizations (DIN: 01377212)
financing to power sector. Further, it had also started financing in the for conducting training programmes. It is also conducting training Place : Gurugram
Infrastructure and Logistics sector and during the first year itself, the programmes under Indian Technical and Economic Co-operation Date : August 11, 2023
Company has sanctioned more than ₹85,700 crore towards various (ITEC) scheme of Ministry of External Affairs.
Infrastructure and Logistics projects. Power being a critical input into
industrial activity, services sector as well as in the day-to-day life of During the financial year 2022-23, RECIPMT has been able to achieve
common man, REC’s contribution lies in significant creation of power 15,371 training man days for 4,854 personnel through Classroom and
infrastructure across the country. Webinar (Online) mode.
124 125
ANNEXURE-V TO BOARD’S REPORT We further report that the Board of Directors of the Company is 1. The Company has raised long term/short term funds by issue
duly constituted with proper balance of Executive Directors, Non- of different debt instruments for financing various projects as
FORM NO. MR-3 Executive Directors, Independent Directors including Women listed below:
SECRETARIAL AUDIT REPORT Independent Director except that the Company was falling short
Sl. no. Type of Debt Instruments Amount ( ₹ in crore)
only by one Independent Director as on March 31, 2023, as stated
FOR THE FINANCIAL YEAR ENDED ON MARCH 31, 2023 above. The changes, in the composition of the Board that took place (A) Long Term Borrowings
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies (Appointment and Remuneration of during the period under review were carried out in compliance with 1. 54 EC Capital Gains Tax 12,154.00
Managerial Personnel) Rules, 2014] the provisions of the Act. Exemption bonds
Adequate notice was given to all Directors to schedule the Board 2. Institutional Bonds/ 25,545.00
To, d. The Securities and Exchange Board of India (Share Subordinate Bonds
The Members, Based Employee Benefits and Sweat Equity) meetings. Agenda and detailed notes on agenda were sent at least
REC LIMITED Regulations, 2021 (Not applicable to the Company seven days in advance (except for meetings conducted at shorter 3. Term Loans from Banks/ FIs 22,911.00
Registered Office: during the Audit Period); notice after complying with the necessary provisions) and a system 4. Foreign Currency 10,036.00
Core 4, SCOPE Complex, 7, exists for seeking and obtaining further information and clarifications Borrowings
Lodi Road, New Delhi - 110003 e. The Securities and Exchange Board of India (Registrars
on the agenda items before the meeting and for meaningful (B) Short Term Borrowings
to an Issue and Share Transfer Agents) Regulations,
We have conducted the Secretarial Audit of the compliance of 1993 regarding the Companies Act and dealing with participation at the meeting.
4. FCNR (B) Loan 15,088.00
applicable statutory provisions and the adherence to good corporate client with respect to issue of securities; All decisions at Board and/or Committee meetings are carried out
practices by REC LIMITED having CIN: L40101DL1969GOI005095 5. Loans from Banks (Tenor 1,150.00
f. The Securities and Exchange Board of India (Delisting unanimously as recorded in the minutes of the meetings of the more than 6 months)
(hereinafter called “the Company”). Secretarial Audit was
of Equity Shares) Regulations, 2021 (Not applicable Board of Directors or respective Committee of the Board, as the case
conducted in a manner that provided us a reasonable basis for Total Funds Raised during 86,884 .00
evaluating the corporate conducts/statutory compliances and to the Company during the Audit Period); may be.
the period
expressing our opinion thereon. g. The Securities and Exchange Board of India (Buyback We further report that based on the review of the compliance 2. Pursuant to provisions of the Companies Act, 2013 and
Based on our verification of the books, papers, minute books, forms of Securities) Regulations, 2018 (Not applicable to mechanism established by the Company and on the basis of the Securities & Exchange Board of India (Issue of Capital &
and returns filed and other records maintained by the Company the Company during the Audit Period); and compliance certificate(s) issued by various departments and taken Disclosure Requirements) Regulations, 2018 and in line with
and also the information, explanations and clarifications provided h. The Securities and Exchange Board of India (Issue and on record by the Board of Directors at their meetings, we are of the approval of shareholders on August 9, 2022 through
by the Company, its officers, agents and authorized representatives Listing of Non-Convertible Securities) Regulations, the opinion that there are adequate systems and processes in Postal Ballot, 65,83,06,000 (Sixty Five Crore Eighty Three Lakh
during the conduct of secretarial audit, the representation made 2021. the Company commensurate with the size and operations of the Six Thousand only) equity shares of ₹10/- each, were allotted
by the Management, we hereby report that in our opinion, the Company to monitor and ensure compliance with applicable laws, as bonus shares in the ratio of 1:3 i.e. one (1) new equity share
Company has, during the audit period covering the financial year The Company is a Non- Banking Financial Company (NBFC) of ₹10/- each for every three (3) equity shares of ₹10/- each.
rules, regulations and guidelines.
ended on March 31, 2023, complied with the statutory provisions categorized as Infrastructure Finance Company (IFC) with the Reserve
listed hereunder and the Company has proper Board-processes and Bank of India (RBI) and the Company is engaged in the business We further report that during the audit period, the following specific 3. After the necessary approvals, a new sub-clause (9) was
compliance-mechanism in place to the extent, in the manner and of providing finance to power, logistics and infrastructure sectors. added in the Objects Clause [Clause III(a)] of Memorandum
activities took place in the Company having a major bearing on the
subject to the reporting made hereinafter: As confirmed and certified by the management, following laws of Association of REC Limited i.e. “To lend to logistics
Company’s affairs in pursuance of the above referred laws, rules,
are specifically applicable to the Company based on the Sector(s)/ and infrastructure sectors to the extent permitted by the
We have examined the books, papers, minute books, forms and regulations, guidelines etc.: Government of India”.
Business(es):
returns filed and other records maintained by the Company for the
financial year ended on March 31, 2023, according to the provisions • Reserve Bank of India Act, 1934 and rules, regulations and
of: directions issued by RBI, from time to time. For Hemant Singh & Associates
(i) The Companies Act, 2013 (the Act) and the Rules made • Guidelines on Corporate Governance for Central Public Sector Company Secretaries
thereunder; Enterprises issued by Department of Public Enterprises.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and We have also examined compliance with the applicable clauses/
the rules made thereunder; regulations of the following: Sd/-
Hemant Kumar Singh
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws (i) Secretarial Standards issued by The Institute of Company (Partner)
framed thereunder; Secretaries of India. Membership No: F6033
(iv) Foreign Exchange Management Act, 1999 and the rules COP No : 6370
(ii) SEBI (Listing Obligations and Disclosure Requirements)
and regulations made thereunder to the extent of Foreign UDIN: F006033E000457231
Regulations, 2015 [SEBI (LODR)].
Direct Investment, Overseas Direct Investment and External Date : June 5, 2023
Commercial Borrowings; During the period under review, the Company has complied with the Place : Delhi
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
(v) The following regulations and guidelines prescribed under the mentioned above except that the Company was not in compliance with
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): the Regulation 17 (1) of the SEBI (LODR), in respect of the appointment
a. The Securities and Exchange Board of India of requisite number of Independent Directors, as the Board had a total of
(Substantial Acquisition of Shares and Takeovers) four Independent Directors against the requirement of five Independent
Regulations, 2011; Directors as on March 31, 2023.
b. The Securities and Exchange Board of India Being a Government Company, in terms of Article 91 of Articles of
(Prohibition of Insider Trading) Regulations, 2015; Association of the Company, all Directors on the Board of REC Limited
c. The Securities and Exchange Board of India (Issue of are appointed by President of India acting through Ministry of Power
Capital and Disclosure Requirements) Regulations, and the Company has no role in appointment of Directors on its
2018; Board. This report is to be read with Annexure A, which forms an integral part of this report.
126 127
Annexure-A ANNEXURE-VI TO BOARD’S REPORT
The Members Auditors’ Certificate on Corporate Governance

REC LIMITED
Registered Office: To,
Core 4, SCOPE Complex, 7,
Lodi Road, New Delhi -110003 The Members,
REC Limited
New Delhi
Based on audit, our responsibility is to express an opinion on the correctness of the contents of the secretarial records. The
compliance with the applicable laws and maintenance of records verification was done on the random test basis to ensure that We have examined the compliance of conditions of Corporate In our opinion and to the best of our information and according to
by the Company. We conducted our audit in accordance with the correct facts are reflected in secretarial records. We believe Governance by REC Limited (“the Company”) for the financial year the explanations given to us, we certify that as on March 31, 2023,
auditing standards CSAS-1 to CSAS-4 (“CSAS”) prescribed by the ICSI. that the processes and practices, we followed provide a ended March 31, 2023, as stipulated in SEBI (Listing Obligations and the Company was in compliance with the requirement of Corporate
These standards require that the auditor complies with statutory and reasonable basis for our opinion. Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) Governance as stipulated in Listing Regulations and Guidelines on
regulatory requirements and plans and performs the audit to obtain (as amended) executed with the Stock Exchanges and Clause 8.2.1
reasonable assurance about compliance with applicable laws and 3. We have not verified the correctness and appropriateness of Corporate Governance for CPSEs, 2010, except for the appointment
financial records and Books of Accounts of the Company. of Guidelines on Corporate Governance for Central Public Sector
maintenance of records. of requisite number of Independent Director on the Board. Further,
Enterprises (CPSEs), 2010 issued by the Department of Public
REC being a Government Company, all the Director are appointed
Due to inherent limitations of an audit including internal, financial 4. Wherever required, we have obtained the Management Enterprises (DPE), Ministry of Finance, Government of India.
representation about the compliance of laws, rules and by the President of India, acting through administrative ministry, i.e.,
and operating controls, there is an unavoidable risk that some The compliance of the conditions of Corporate Governance is the
misstatements or material non-compliance may not be detected, regulations and happening of events etc. Ministry of Power and this is beyond the control of the Company.
responsibility of the Management. Our examination has been limited
even though the audit is properly planned and performed in We further state that such compliance is neither an assurance
5. The compliance of the provisions of the Corporate and to review of the procedures and implementation thereof, adopted
accordance with the CSAS. Our report of even date is to be read along as to the future viability of the Company nor the efficiency or
other applicable laws, rules, regulations, standards is the by the Company, for ensuring the compliance with the conditions
with this letter.
responsibility of management. Our examination was limited of Corporate Governance. It is neither an audit nor an expression of effectiveness with which the management has conducted the
1. Maintenance of secretarial record is the responsibility of the to the verification of procedures on random test basis. opinion of financial statements of the Company. affairs of the Company.
management of the Company. Our responsibility is to express
6. The Secretarial Audit report is neither an assurance as to
an opinion on these secretarial records based on our audit.
the future viability of the Company nor of the efficacy or M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP.
2. We have followed the audit practices and processes as effectiveness with which the management has conducted Chartered Accountants, Chartered Accountants,
were appropriate to obtain reasonable assurance about the the affairs of the Company. ICAI Firm Registration: 001135N ICAI Firm Registration: 000018N/N500091
For Hemant Singh & Associates Sd/- Sd/-

Company Secretaries Name - Gaurav Mittal Name - Atul Aggarwal
Designation: Partner Designation: Partner
Membership Number: 099387 Membership Number: 092656
UDIN: 23099387BGWDLQ9832 UDIN: 23092656BGUFQD1300
Sd/-
Hemant Kumar Singh
(Partner)
Membership No: F6033
Place : New Delhi
COP No : 6370
UDIN: F006033E000457231
Date : June 5, 2023
Place : Delhi
128 129
ANNEXURE-VII TO BOARD’S REPORT vi. Procurement and installation of Bhabhatron Multi ix. Setting up 500 nos. of Solar Street Lighting system
Annual Report on CSR Leaf Collimator (MLC) Radiotherapy equipment at
Virat Hospice, Jabalpur, Madhya Pradesh.
with Remote Monitoring System (RMS) in Bilaspur
district of Himachal Pradesh.
1. Brief outline on CSR policy of the Company: amount of expenditure to be incurred, periodically submit vii. Providing 1000 school benches made from recyclable x. Construction of two multipurpose community halls
the reports to the Board of Directors. plastic waste in 27 government schools and in two villages of Krishna District, Andhra Pradesh
The Company has its Corporate Social Responsibility and one multipurpose community hall at Asufii
REC Limited undertakes its CSR activities through ‘REC conducting awareness programme in 50 schools
Policy, in consonance with Section 135 of the Companies Punanamei Mao, Senapati District, Manipur.
Foundation’, a registered society. The foundation is towards climate change & sustainability in Gurugram,
Act, 2013 and rules made thereunder. REC CSR policy has
been amended from time to time in compliance with governed by Governing Body wherein officials of REC Haryana. xi. Construction of “REC Girls Hostel” at Kohima Science
the Companies (Corporate Social Responsibility Policy) Limited are nominated. College, Jotsoma, Nagaland.
viii. Providing 1,000 school benches, 1,250 Bunk beds,
Amendment Rules. CSR Projects: 5,000 rPET (Recycled Polyester) T-Shirts made from xii. Procurement & installation of 8 nos. Ultrasound
In line with Section 135 of the Companies Act, 2013, at least recyclable plastic waste in Government Childcare Scanning Machines with Twin View in eight District
During the year, 24 CSR projects were approved with Hospitals in Manipur.
2% of the average net profits of the Company made during aggregate assistance of ₹190.20 crore and an amount of Institutions in Rajasthan.
the three immediately preceding financial years shall be ₹210.35 crore during the year (including carried forwarded
spent in pursuance of Corporate Social Responsibility of excess spent of ₹0.40 crore from previous year) on CSR
Policy. The Company ensures that CSR projects are carried projects. The assistance has broadly been channelized to the
out in line with activities prescribed under Schedule VII of various projects including the following:
the said Act.
i. Procurement, operation and maintenance of 2 nos. of
The Company endeavors to adopt an integrated approach mobile medical units for primary health care services
to address the community, societal & environmental in Gadchiroli, Maharashtra.
concerns by taking up a range of the activities, in a focused
manner to the extent possible. CSR projects are chosen in ii. Procurement, operation and maintenance of 10
activities pertaining to inclusive growth of society, with nos. of mobile health clinics for primary health care
special attention to the development of weaker sections services in Bhojpur, Bihar.
of society and the backward districts of the country in the iii. Construction of 500 nos. toilets blocks at work place
given chosen/focus area(s). of Border Security Force (BSF) troops in Gurdaspur,
A Corporate Social Responsibility Committee of the Board Amritsar, Firozpur and Abhohar Districts in Punjab.
(‘the CSR Committee’) shall be constituted consisting of iv. Construction of 100 bedded ‘REC Vishram Sadan’
three or more Directors, out of which at least one Director at District Hospital, Ujjain for attendants of patients
shall be an Independent Director. Role & Responsibilities belongs to economic weaker sections.
of the Corporate Social Responsibility Committee shall
inter-alia include, formulating and recommending to the v. Distribution of 4,300 nos. of aids and appliances to
Board the activities to be undertaken by the Company specially-abled persons in Assam, Bihar, Chhattisgarh,
in areas or subject, specified in Schedule VII, monitor Jharkhand, Maharashtra, Rajasthan, Uttar Pradesh
corporate responsibility policy, and recommend the and Tamil Nadu.
CSR Assistance for ₹2.50 crore for construction of G+2 School building for expanding school infrastructure under REC CSR project
2. Composition of the CSR Committee:
In line with the Companies Act 2013, CSR committee of the company constituted and as on March 31, 2023, the Composition of the
same is as under:
Sl. no. Name of Director Designation / Nature of Number of meetings of CSR Number of meetings of
Directorship Committee held during the CSR Committee attended
tenure by Director
1 Dr. Manoj M. Pande Chairperson 10 10
(Independent Director)
2 Shri Ajoy Choudhury Member 10 10
Director (Finance)
3 Dr. Gambheer Singh Member 7 7
(Independent Director) (upto Dec 29, 2022)
4 Shri Vijay Kumar Singh Member 8 8
CSR Assistance of ₹100 crore given by REC to Broad base Sports like boxing, badminton & athletics and promotion of excellence in sports in India Director (Techincal) (w.e.f. July 7, 2022)
130 131
Sl. no. Project details Key findings of the impact of the project
4 ₹13.24 crore for Installation of 2 MWp SPV system at a. Reduction in campus carbon footprint & dependency on
various locations on campus of Acharya Nagarjuna non-renewable energy sources.
University in Guntur, Andhra Pradesh by New & b. Earlier there were frequent power cuts which caused
Renewable Energy Development Corporation of disruption while performing experiments, working on
Andhra Pradesh Ltd. (NREDCAP) projects, etc.
5 ₹1.99 crore for Setting up Research & Rehabilitation a. Quality education, medical & vocational rehabilitation &
Center (3rd floor), boundary wall with gate and residential services are being provided to intellectually
playground at Research and Rehabilitation Centre for challenged children.
specially abled children at Vijaypur village, Bilaspur, b. The children are referred by state health department.
Himachal Pradesh by Chetna Himachal Pradesh (CHP) c. The facilities are provided to specially abled children,
free of cost.
6 ₹1.75 crore for installation of 1,000 LPM oxygen a. Provided uninterrupted oxygen supply in the hospital.
generation plant, procurement of 22 oxygen b. Around 1,500 patients were admitted during Covid and
concentrators and 200 semi fowlers beds at Base around 250 required uninterrupted oxygen supply.
Hospital, Pithoragarh, Uttarakhand, by Chief Medical c. It is one of the largest hospital in the district.
Officer, Pithoragarh, Uttarakhand (CMO) d. The hospital is a 280 bedded capacity.
7 ₹1.40 crore for Procurement of Cold Chain Equipment The cold chain equipment has been provided to DNH, Nagaland
(CCE, D &NH) for COVID-19 Vaccination program in and West Bengal to preserve the Covid 19 vaccine during the
Dadra & Nagar Haveli, Nagaland and West Bengal by surge of Covid across the nation.
RECF(CCE, N&WB)
8 ₹1.53 crore for Construction of blood bank cum a. A full-fledged blood bank with component separation
administrative block and upgradation of blood bank facilities has been established.
Equipment of backward districts of Ananthapuram b. Safe and sustainable blood supply to needy population has
district, Andhra Pradesh by Indian Red Cross Society been provided.
(IRCS) c. 24 hrs blood bank in the town, availability of infection
Aids and appliances provided to specially abled, under REC CSR project
free blood units, blood components such as packed RBCs,
3. Web-links detailing composition of CSR Committee, CSR Policy and CSR projects approved by the Board: frozen plasma & platelets.
d. Free supply of blood units to poor sections and thalassemia
https://www.recindia.nic.in/our-csr-initiatives & haemophilia.
4. Executive summary along with web-link of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8:
9 ₹3.10 crore for Construction of radiotherapy unit in a. Provided accessible health care services through integration
The impact assessment was carried out as per CSR Amendment Rules effective from 22 January 2021, of projects having outlays of one Virat Hospice, run under Brahmrishi Mission Samiti, to of oncology and palliative care to cancer patients and
crore rupees or more, and which have been completed not less than one year before undertaking the impact study. support the terminally ill cancer patients in Jabalpur, terminally ill people.
M/s Genesis Management & Market Research Private Limited carried out the Impact assessment study. The tables below provide name Madhya Pradesh by Brahmrishi Mission Samiti, b. The institution provides free services to poor & needy patients.
of projects, key findings of the impact of the projects. Jabalpur (BMS) c. The hospice is 18 bedded capacity.
Sl. no. Project details Key findings of the impact of the project 10 ₹9.21 crore for Community Development awareness a. Promoted indigenous food systems to improve nutrition &
program for ultimate utilization of the naturally sustainable livelihood of indigenous communities.
1 ₹2.48 crore for installation of 1,700 LPM oxygen a. Provided uninterrupted oxygen supply in the hospital. available nutrition, food and energy around the b. Better occupation opportunities are created after the
generation plant and generator plant in Dalvi Hospital, b. About 15,000 patients have been cured during Covid in the communities, in Meghalaya and Nagaland by North project in the region.
Pune, Maharashtra by Pune Municipal Corporation hospital. East Slow Food & Agrobiodiversity Society (NESFAS) c. Scientific & technical skills were imparted to the community
(PMC) c. The hospital is a 170 bedded capacity. in traditional cultivation making farmers a focal point.
d. The plant is well maintained and in working condition. The d. There have been rise in the income among the people
oxygen supply is not restricted in the said hospital but to benefitted under the project.
other hospitals in the Pune city.
11 ₹9.83 crore for distribution of 9,000 aids & assistive a. Provided aids & assistive devices to the persons with special
2 ₹1.10 crore for construction of Integrated muscular a. Centre established under one roof for the persons living devices to persons with special abilities in various states abilities to restore their confidence.
dystrophy and Rehabilitation center ‘Manav Mandir’ (3rd with muscular dystrophy. of India by Artificial Limbs Manufacturing Corporation b. Encouraged community involvement by empowering
floor) in Solan, Himachal Pradesh by Indian Association b. Only centre for muscular dystrophy in India. of India (ALIMCO) persons with special abilities.
of Muscular Dystrophy, (IAMD) c. Boccia – a Paralympic game is played on the 3rd floor of the
centre.
12 ₹1.35 crore for providing sustainable energy systems a. Provided clean & environmental friendly technologies,
3 ₹1.61 crore for providing medical equipment and a. The infrastructure has been strengthened in the district for SMARTGRAM initiative of Rashtrapati Bhawan in which are self-sustainable & efficient.
instrument in District Hospital and Public Health hospital and public health centres. 45 villages of Haryana, by Skill Council for Green Jobs b. Most of the beneficiaires are agricultural labourers or
Center in West Sikkim, Sikkim by District Magistrate, b. All equipment were in working condition and the facilities (SCGJ) working on petty jobs belonging to under privileged
West Sikkim (DM, WS) were provided to needy patients. categories.
132 133
(₹ in crore)
Sl. no. Project details Key findings of the impact of the project
6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project as detailed in Annexure-A) : 204.31
13 ₹1.19 crore for providing training to 10,000 candidates a. Provide training to 10,000 candidates to access job (b) Amount spent in Administrative Overheads : 5.30
for appearing in competitive exams in 5 districts opportunities.
in Ambala, Jhajjar, Jind, Kaithal & Yamuna Nagar of b. Access to online information and helped them prepare for (c) Amount spent on Impact Assessment, if applicable : 0.34
Haryana by Haryana CSR Advisory Board (HCSRAB) competitive exams. (d) Total amount spent for the Financial Year [(a)+(b)+(c)]. : 209.95
c. Access to mock tests for better preparation and self-
examination. (e) CSR amount spent or unspent for the Financial Year:
The detailed impact assessment report is available at https://recindia.nic.in/impact-assessment-reports Total Amount Spent for the Amount Unspent (₹ in crore)
Financial Year. (₹ in crore) Total Amount transferred to Unspent Amount transferred to any fund specified under
The table below provides the ratings for 13 projects on different parameters namely (i) Inclusiveness (ii) Relevance, (iii) Effectiveness,
(iv) Convergence and (v) Sustainability. Each project has been assessed on the above key parameters and further categorized into CSR Account as per section 135(6) Schedule VII as per second proviso to section 135(5)
High/Medium/ Low basis the impact generated: Amount Date of transfer Name of the Fund Amount Date of
transfer
High This category highlights that the project has been able to meet the key evaluation parameters of impact within the 209.95 Nil NA Nil NA NA
said IRECS framework.
(f ) Excess amount for set-off, if any:
Medium This category highlights that the project has been able to partially meet the key evaluation parameters of impact
within the said IRECS framework. Sl. Amount
Particulars
No (₹ in crore)
Low This category highlights that the project has yet to meet the key evaluation parameters of impact within the said (1) (2) (3)
IRECS framework. (i) Two percent of average net profit of the company as per section 135(5) ₹202.65
Total amount spent for the Financial Year (including carried forwarded of excess spent of ₹0.40 crore from
(ii) ₹210.35
Sl. Project/IRECS Parameters Inclusiveness Relevance Effectiveness Convergence Sustainability previous year)
no. (iii) Excess amount spent for the Financial Year [(ii)-(i)] ₹7.70
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous Financial Years, if any ₹0.00
1 PMC High High Medium High Medium
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] ₹7.70
2 IAMD High High High High High
7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years :
3 DM, WS High High High High Medium
Sl. Preceding Amount Amount Amount transferred to any fund specified Amount
4 NREDCAP High High High High High no. Financial Year transferred to spent in the under Schedule VII as per section 135(6), if any remaining to
Unspent CSR reporting Name of the Amount Date of be spent in
5 CHP High High Medium High High Account under Financial Year Fund (₹ in crore) transfer succeeding
section 135 (6) (₹ in crore) financial years
6 CMO Medium High High High Medium (₹ in crore) (₹ in crore)
1 FY2019-20 Nil Nil Nil Nil Nil Nil
CCE, D&NH Medium Medium Medium Medium Medium 2 FY2020-21 Nil Nil Nil Nil Nil Nil
7
3 FY2021-22 Nil Nil Nil Nil Nil Nil
CCE, N&WB High High High High Medium
8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the
8 IRCS High High High High High Financial Year : Nil
9 BMS High High High High High 9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5) : The
Company has fully spent its CSR Budget for the Financial Year 2022-23.
10 NESFAS High High Medium High Medium
11 ALIMCO Medium High High High Medium
12 SCGJ High Medium Medium Medium Medium

Sd/- Sd/-
13 HCSRAB High High Medium High Medium (Ajoy Choudhury) (Dr. Manoj Manohar Pande)
Director (Finance) Independent Director and
(₹ in crore) DIN : 06629871 Chairperson of CSR Committee
DIN : 09388430
5. (a) Average net profit of the company as per section 135(5) : 10,132.36 Place : Gurugram
(b) Two percent of average net profit of the company as per section 135(5) : 202.65 Date : August 11, 2023
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years : Nil
(d) Amount required to be set-off for the financial year, if any. : 0.40
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]. : 202.25
134 135
Annexure-A: Details of CSR expenditure during the year 2022-23
Sl. Name of the Project Item from the list of Local Area (Yes/No) Location of the Location of the Amount spent in for the Mode of Implementation- Mode of Implementation-Through
no. activities in Schedule VII Project Project project (` in crore) Direct (Yes/No) implementing Agency
of the Act State District Implementing Agency CSR
Registration No.
1 2 3 4 5a 5b 6 7 8
1 Providing Safe Drinking Water facility in rural areas in Health care NA Jaipur, Pathankot, Telangana, Rajasthan & 0.10 No Naandi Foundation, NA
15 villages of three states. Sangrur, Nalgonda, YSR Punjab Hyderabad
Kadapa
2 Construction of Building in SVNIRTAR to establish the Health care NA Cuttack Odisha 2.98 No Swami Vivekanand National NA
Institute as a ‘REC Centre of Excellence for Deformity Institute of Rehabilitation
Correction’. Training and Research,
Cuttack, Odisha.
3 Construction of elevator room & installation of Health care NA Aizawl Mizoram 0.32 No Medical Superintendent, NA
elevator at OPD building & Gynaecology building Civil hospital, Aizawal
Civil Hospital.
4 Providing better health facilities to leprosy affected Health care NA Champa, Faizabad, Tamilnadu, UP, 1.16 No The Leprosy Mission Trust CSR00001796
and other poor people by constructing and Vadathorasalur Chhattisgarh India, New Delhi
equipping operation theatre and maternity block in
The Leprosy hospitals.
5 Installation of 275 nos. of hand pumps in district Health care NA Shrawasti Uttar Pradesh 0.14 No District Magistrate, Shrawasti NA
Shrawasti.
6 Installation of 250 hand pumps in district Allahabad. Health care NA Allahabad Uttar Pradesh 0.03 No District Magistrate, NA
Allahabad
7 Construction & renovation of Gandhi Memorial Health care NA Rewa Madhya Pradesh (0.42) No Shyam Shah Medical NA
Hospital (a Government Hospital) affiliated to Shyam College, Rewa
Shah Medical College in Rewa (unspent amount
refunded).
8 Supporting for installation of 20 nos. of water ATM Health care NA Prayagraj, Agra, Uttar Pradesh, Uttrakhand, 0.19 No Bisnouli Sarvodaya CSR00001405
machines at Kumbh Mela site & at various iconic Gorakhpur, Varanasi, Delhi, Jharkhand Gramodaya Sewa Sansthan
places in India. Chitrakoot, Haridwar,
Deoghar, Delhi
9 Construction of 12 kms road from Yaingangpokpi to Health care NA Ukhrul Manipur 5.74 No North Eastern Region CSR00040556
Laikoiching in Ukhrul district, Manipur. Community Resource
Management Society
(NERCRMS)
10 Adopting a slum for ensuring cleanliness of the slum- Health care NA PAN India PAN India 0.10 Yes Respective CPM, RO & Admin CSR00005016
drinking water, sanitation, toilets, IEC campaigning, Division, REC Ltd.
etc. under Swachhta Action Plan (SAP).
11 Training for manufacturing affordable sanitary Health care NA Palwal Haryana 0.02 No Society for Promotion of NA
napkin and awareness generation on menstrual Youth & Masses (SPYM)
hygiene amongst rural girls/ adolescents/ women.
12 Transformation of health by providing nursing Health care NA Kiphire Nagaland 1.06 No Deputy Commissioner, NA
training, infrastructure support in district hospital, Kiphire
strengthen hospital staff to improve maternal
& child health care, procurement of generators,
infrastructure development etc.
13 Construction / extension of staff quarter for medical Health care NA Kiphire Nagaland 1.50 No Deputy Commissioner, NA
department and Modular prefabricated housing Kiphire
(quarter) for teachers.
14 Installation of 200 nos. of Reverse Osmosis water Health care NA Purnea Bihar 0.30 No Society for Advancement CSR00022145
treatment plant with overhead storage tank and of Villagers Empowerment
electrical pump in 200 nos. of Aanganwadi Kendra/ and Rehabilitation of All
primary school. (SAVERA)
15 Construction of Sewage Treatment Plant in Advanced Health care NA Navi Mumbai Maharashtra 2.32 No Tata Memorial Center CSR00001287
Center for Treatment, Research and Education in
Cancer (ACTREC), Tata Memorial Center.
136 137
Registration No.
1 2 3 4 5a 5b 6 7 8
16 Providing food to migrant labourers/ family members Health care NA PAN India PAN India 0.01 Yes REC Volunteers/ CSR00005016
engaged at construction/ sub stations, poor people, Power utilities/ Local
daily wage labourers etc. due to lockdown in view of administration/ Police
the outbreak of pandemic corona virus COVID-19.
17 Distribution of 3400 nos. of aids and appliances to Health care NA Bangalore, Patna, Karnataka, Bihar, 1.02 No Shri Bhagwan Mahaveer CSR00004300
specially-abled persons across the country. Ranchi, Noida and Jharkhand, Uttar Pradesh Viklang Sahayata Samiti
Hyderabad and Andhra Pradesh (BMVSS), Jaipur, Rajasthan
18 Procurement, installation & commissioning of blood Health care NA Warangal Telangana 0.54 No Indian Red Cross Society CSR00014677
bank equipment/items at Indian Red Cross Society (IRCS), Warangal, Telangana
(IRCS).
19 Distribution of approx. 9,000 aids & assistive devices Health care NA PAN India PAN India 7.87 No Artificial Limbs CSR00000532
to persons with disabilities by conducting camps at Manufacturing Corporation
25 locations in various districts in the country. of India (ALIMCO)
20 Strengthening health facilities by providing medical Health care NA Barmer Rajasthan 0.12 No Chief Medical & Health NA
equipment, ambulances, air conditioners, RO water Officer, Barmer
plants, generator set, laptop, projector and office
chairs in various Community Health Centres and
Primary Health Centres.
21 Strengthening cancer screening and basic cancer Health care NA Patna, Gaya, Bhojpur, Bihar 0.35 No Tata Memorial Cancer CSR00001287
care services in 14 districts of Bihar. Nalanda, Aurangabad, Hospital
Begusarai, Vaishali,
Muzaffarpur,
Samastipur, Siwan,
Darbhanga,
Madhubani, Supaul,
Bhagalpur
22 Repair of the 132 toilets in the Government Schools Health care NA Pathankot, Gurdaspur Punjab 0.04 No Department of School NA
constructed under REC CSR support. Education, Government of
Punjab
23 Construction of 140 bedded home (Block-B & Part Health care NA Alwar Rajasthan 0.79 No SAPNA CSR00000235
Block-C of Anandam) - A home for the homeless sick,
destitute, unknown & elderly people.
24 Renovation 50 nos. Anganwadi Centers (AWCs) and Health care NA Muzaffarpur Bihar 0.89 No DC Muzaffarpur/ PMA NA
providing containers for storing food grains, LPG gas
connection & setting up of Antenatal care corners in
1,125 nos. AWCs.
25 Procurement, installation & commissioning of Digital Health care NA Jaipur Rajasthan 0.11 No SMS Hospital, Jaipur NA
Substraction Angiography machine.
26 Installation of oxygen generation plant and DG set at Health care NA Chamba Himachal Pradesh 0.03 No Chief Medical Officer, CSR00005997
Civil Hospital, Dalhousie. Chamba, Himachal Pradesh
27 Procurement, installation & commissioning of Neuro Health care NA Jaipur Rajasthan 2.46 No SMS Hospital NA
navigation (Cranial + Spinal) machine.
28 Setting up 2 Nos. of electrical cum gas operated Health care NA Jhansi Uttar Pradesh 0.38 No Nagar Nigam, Jhansi CSR00012233
(Hybrid) Crematorium.
29 Up-gradation of the District Hospital, Mon by Health care NA Mon Nagaland 0.90 No Deputy Commissioner Mon CSR00006825
procurement of the medical equipment.
30 Establishment of Oxygen ventilators, ALS Ambulance, Health care NA Ujjain Madhya Pradesh 0.10 No Indian red cross Society CSR00008070
and ICU patients beds at Govt. Charak Hospital, Ujjain.
31 Setting up of 10 Bedded ICU for paediatric and neo Health care NA Chaibasa Jharkhand 0.31 No District CSR Fund Chaibasa, CSR00006981
natal section, Medical equipment for 20 bedded Jharkhand.
service in District Hospital.
138 139
Registration No.
1 2 3 4 5a 5b 6 7 8
32 Procurement, installation and commissioning of 32 Health care NA Yadgir Karnataka 0.43 No Arogya Raksha Samithi CSR00012195
slice CT Scan Machine at New District Hospital. District Hospital (ARSDH),
Yadgir, Karnataka.
33 Upgrading the Uro Science Centre for Kidney Health care NA Bikaner Rajasthan 5.00 No Rajasthan Medicare Relief CSR00012285
Transplant in Sardar Patel (SP) Medical College, Prince Society, Bikaner
Bijay Singh Memorial (PBM) Hospital.
34 Improving Screening for Cervical Cancer Health care NA Barabanki Uttar Pradesh 0.28 No Progressive Foundation CSR00013216
through Empowering Communities.
35 Survey and repair of 12,347 toilets constructed during Health care NA Ghazipur, Ballia, Jalaun, Uttar Pradesh, Bihar, 21.87 No Bharat Sevashram Sangha CSR00000812
2014-15 under Swachh Vidyalaya Abhiyan (SVA) Dhar Ratlam, Vidisha, Rajasthan, Telangana and (BSS)
by REC in 5 states Uttar Pradesh, Bihar, Rajasthan, Jhabua, Udaipur, Ajmer, Madhya Pradesh
Telangana and Madhya Pradesh. Jodhpur, Bharatpur,
Rangareddi, Khammam,
Mahbubnagar,
Nalgonda, Warangal,
Adilabad, Khagaria,
Begusarai, Nalanda,
Munger, Gopalganj,
Gaya, Madhepura,
Sheikhpura, Nawada,
Jamui, Kishanganj,
Patna, Muzaffarpur,
Lakhisarai, Bhagalpur
36 To reduce the prevalence of Gender-Based Violence Health care NA Mysore and Bareilly Karnataka and UP 0.61 No Public Health Research CSR00011722
(GBV) in the urban slums of Mysore (Karnataka) and Institute of India (PHRII),
Bareilly (UP). Mysore & REC Foundation
37 Procurement and installation of medical equipment Health care NA Faridabad Haryana 1.23 No District Health and Family CSR00018609
to strengthen health care service in B.K. Civil Hospital, Welfare Society Faridabad
Faridabad.
38 Procurement of 15 nos. of ambulances to be run in Health care NA Anuppur, Barwani, Madhya Pradesh 1.06 No Parivaar Education Society CSR00000052
tribal areas of various districts in Madhya Pradesh. Betul, Dhar, Harda, (PES)
Khandwa, Khargaone,
Seoni, Shahdol, Siddhi,
Vidisha
39 Improving cleanliness and public conveniences Health care NA Bhojpur Bihar 0.09 Yes REC Foundation NA
in and around 7 Chhath Ghats and ensuring covid
appropriate behaviour.
40 Setting up of 20 bedded ICU facility in District Hospital Health care NA Khagaria Bihar 0.33 No District Rural Development CSR00012540
and multi gas pipeline facility in the District Hospital. Agency (DRDA), Khagaria
41 Installation of various Medical equipment’s at Health care NA Kamptee Maharashtra 1.81 No Cantonment Board Kamptee CSR00018641
Kamptee Cantt Board Hospital. (Cantt board), Nagpur,
Maharashtra
42 Providing medical equipment at various government Health care NA Alwar Rajasthan 0.51 No Rajasthan Medicare Relief CSR00008981
hospitals in Alwar. Society
43 Modernization and Digitization of Psychiatric Health care NA Bengaluru Karnataka 0.13 No National Institute of Mental CSR00006218
Rehabilitation Services. Health and Neurosciences
(NIMHANS)
44 Procurement, operation and maintenance of 10 Health care NA Bhojpur Bihar 4.00 No Doctors For You CSR00000608
nos. of mobile health clinics for primary health care
services.
45 2-days free Health Camp on Sept 17-18, 2022 in Health care NA Bhojpur Bihar 0.32 Yes RECF NA
Barhara block, Bhojpur.
140 141
Registration No.
1 2 3 4 5a 5b 6 7 8
46 Construction of 500 nos. toilet blocks at work place Health care NA Gurdaspur, Amritsar, Punjab 2.35 No Border Security Force (BSF), CSR00048288
of BSF troops in Gurdaspur, Amritsar, Ferozpur and Ferozpur and Abhohar Punjab.
Abhohar.
47 Provide 4,300 nos. of aids and appliances to specially- Health care NA Sonitpur, Vaishali, Assam, Bihar, Chhattisgarh, 0.60 No Shri Bhagwan Mahaveer CSR00004300
abled persons. Bilaspur, Bokaro, Jharkhand, Maharashtra, Viklang Sahayata Samiti
Chandrapur, Dausa, Rajasthan, Uttar Pradesh (BMVSS)
Etah, Thoothukudi and Tamil Nadu
48 Construction of 100 bedded ‘REC Vishram Sadan’ Health care NA Ujjain Madhya Pradesh 1.51 No Ujjain Jila Aspathal Rogi CSR00043963
(G+3) at District Hospital. Kalyan Samiti (UJARKS)
49 Contribution to PM CARES Fund. PM CARES NA PAN India PAN India 50.00 No Government of India NA
50 Expanding infrastructure for SSMI school. Education NA Punjabi Bagh Delhi 0.85 No Swami Sivananda Memorial NA
Institute of Fine Arts & Crafts
(SSMI)
51 Construction of compound walls and providing Education NA Mahbubnagar Andhra Pradesh 1.24 No District Magistrate, NA
gates in 24 nos. of Government Schools. Mahbubnagar
52 Raising young innovators through the conceptual Education NA Kanpur Uttar Pradesh 0.35 No IIT Kanpur CSR00004774
research experience to 1,800 students and 150
teachers.
53 Transforming school education by providing Education NA Chandel Manipur 0.54 No Deputy Commissioner, NA
projectors, water facilities, furniture, white boards & Chandel
markers, infrastructure support in schools & hostels,
improvement of science laboratories, etc.
54 Transforming school education by providing Education NA Mamit Mizoram 2.75 No Deputy Commissioner, NA
equipment, teachers’ training, increasing female Mamit
literacy, providing drinking water in Government
schools, etc.
55 Transforming school education by upgrading the Education NA Kangra Himachal Pradesh 0.48 No Deputy Commissioner, NA
infrastructure of 15 Government primary schools, Kangra
1 Government higher school & 1 Government
senior secondary school by repairing, renovating
classrooms, redesigning kitchen, boundary walls,
electrical wiring/ providing internet, procurement
of water cooler, almirahs, cutlery, converting class
rooms in to smart class rooms, providing play
equipment, school library, science/ mathematics
laboratory, etc.
56 Strengthening of Science and computer laboratories Education NA Secunderabad Telangana 0.78 No District Collector, Hyderabad NA
by providing lab equipments, information &
communication technology equipments &
refurbishment of infrastructure in 7 nos. for
Government schools, conversion of 60 nos. of
class rooms into Digital class rooms in 60 nos. of
Government Schools and installation of 43 nos. of 50
LPH Reverse osmosis water treatment system in 43
nos. of Government Schools.
57 Job oriented Skill Development training to 1,100 Education NA PAN India PAN India 0.26 No The Apparel Training & CSR00000938
unemployed youths belonging to SC/ST/OBC/ Design Centre
Women/Minority/ EWS/Underprivileged.
58 Job oriented skill development training to 1,000 nos. Education NA Mirzapur Uttar Pradesh 0.15 No Matrix Society for Social CSR00000323
of beneficiaries belonging to economically weaker Service (MASS)
section.
142 143
Registration No.
1 2 3 4 5a 5b 6 7 8
59 Skill development training and distribution of Education NA Aurangabad Maharashtra 0.68 No Rajureshwar Ganesh CSR00001405
equipment kit for self-employment to 500 nos. of Bahudeshiya Sevabhavi
women belonging to economically weaker section. Sanstha (RGBSS)
60 Transforming school education in West Sikkim by Education NA West Sikkim Sikkim 5.00 No District Magistrate, West NA
strengthening school library, science laboratory, Sikkim
organizing science & technology fair, recruitment
of mathematic teachers, providing smart class,
renovation of hostel, providing furniture, training of
teachers & exposure visit of teachers & students etc.
61 Construction of auditorium in Government Higher Education NA Kannur Kerala 0.80 No District Panchayat, Kannur NA
Secondary School.
62 Job oriented skill development training to 2,500 Education NA PAN India PAN India 0.93 No Confederation of Indian CSR00001013
nos. of people belonging to SC/ST/OBC/Women/ Industry (CII)
Minority/EWS at various locations.
63 Job-oriented Skill development training to 360 nos. Education NA Chhatarpur Madhya Pradesh 0.26 No Indian Institute for Higher CSR00003571
of beneficiaries belonging to SC/ST/OBC/Women/ Education and Research
EWS etc. Trust (IIHERT)
64 Improving quality of education through Education NA Chamba Himachal Pradesh 0.60 No Deputy Commissioner, NA
Demonstration Vans and Smart Teaching. Chamba
65 Providing firefighting equipment in a building for Education NA Gurugram Haryana 0.14 No RK Mission CSR00006101
providing value education.
66 Operating mobile school for imparting free education Education NA Gurugram and Hardoi Haryana and Uttar Pradesh 0.13 No All India Citizens Alliance CSR00002627
to 462 children of migrant construction labourers in for Progress & Development
Gurugram, Haryana and Hardoi, Uttar Pradesh. (AICAPD),
67 Construction of 2 hostel tower (G+8) with furniture, Education NA Kanpur Uttar Pradesh 6.44 No IIT Kanpur CSR00004774
fixtures, landscaping, external lighting & approach
road for post graduate students and installation
of grid connected 100kWp roof top solar PV Panel
under School of Medical Research and Technology.
68 Construction of hostel building for Scheduled Tribes/ Education NA Rajsamand Rajasthan 0.74 No Rajasthan Vanvasi Kalyan CSR00008067
vulnerable/ weaker section of the society in Kelwada Parishad (RVKP)
(Kumbhalgarh) village.
69 Installation of 0.25 MW SPV system and LED lights at Environment Sustainbility NA Sambalpur Odisha 0.32 No Sambalpur University, NA
various locations at Sambalpur University Campus. Odisha
70 Installation of solar roof-top power panel and micro Environment Sustainbility NA Gurugram and Mewat Haryana 0.29 No Skill Council for Green Jobs CSR00001359
grids under Smartgram project.
71 Installation of 50KWp grid connected solar PV at Environment Sustainbility NA Dehradun Uttarakhand 0.09 No Swatantrata Senani NA
Information Technology Institute for the Tribes of Lokbandhu Rammurti
India (ITITI). Pawsey Sewa Nyas,
Dehradun
72 Installation of 1 MWp SPV system at various locations Environment Sustainbility NA Madurai Tamil Nadu 0.29 No Madurai Kamaraj University CSR00039862
at campus of Madurai Kamaraj University. (MKU), Madurai
73 Setting up 1,650 nos. of Solar Street Lights in rural Environment Sustainbility NA Nashik Maharashtra 1.58 No DC Nasik & REIL NA
and tribal areas.
74 Establishment of biodiversity and wildlife Environment Sustainbility NA Srinagar and Ladakh Kashmir, Srinagar and 0.72 No Atal Incubation Center CSR00014767
conservation laboratory and training center. Ladakh. - Centre for Cellular &
Molecular Biology (AIC-
CCMB), Hyderabad
144 145
Registration No.
1 2 3 4 5a 5b 6 7 8
75 Setting up 500 nos. of Solar Street Lighting system of Environment Sustainbility NA Bilaspur Himachal Pradesh 0.50 No Himachal Pradesh Energy CSR00020953
12 Watt with Remote Monitoring System (RMS). Development Agency
(HIMURJA)
76 Contribution to Clean Ganga Fund. Environment Sustainbility NA PAN India PAN India 20.00 No Clean Ganga Fund , Ministry NA
of Jal Shakti, GoI
77 Development of rural areas by deepening of wells, Rural Development NA Udaipur, Banswara and Rajasthan 0.15 No Rajasthan Vanvasi Kalayan CSR00008067
renovation & construction of check dams and Pratapgarh Parishad (RVKP), Udaipur
organizing medical camps.
78 Construction of multipurpose hall cum indoor Rural Development NA Ukhrul Manipur 0.99 No North Eastern Region CSR00040556
stadium in Somdal village of Ukhrul district. Community Resource
Management Society
(NERCRMS)
79 Rural Development Works like construction of Rural Development NA Bhojpur Bihar 0.08 No NHPC Limited (NHPC), New NA
community hall, PCC Road, Conduits, Yatri Shed, Delhi
installation of LED Lights, RO Plants etc.
80 Construction of 3 community center with toilet Rural Development NA Mayurbhanj Odisha 0.11 No District Collector, NA
complex in 3 villages. Mayurbhanj
81 Construction of 4 nos. of community hall/centre in 4 Rural Development NA Bundi Rajasthan 0.42 No Rajasthan Medicare Relief CSR00019253
villages of Patan and Nainwa block of Bundi. Society, Bundi
82 Construction of Community Hall at Asufii Punanamei Rural Development NA Senapati Manipur 0.69 No District Rural Development CSR00031715
Mao. Agency, Manipur.
83 Construction and operation of shelter home with Setting up old age homes NA Leh Ladakh 0.86 No Helpage India, New Delhi CSR00000901
wellness facility (60 seaters) for the care of the elderly.
84 Construction of REC Motorsports Race Track and Sports NA Mamit Mizoram 5.50 No Mizoram State Sports CSR00017572
Sports Complex. Council, (MSSC)
85 Broad basing of Sports and promotion of excellence Sports NA PAN India PAN India 25.00 No National Sports CSR00016457
in sports in India. Development Fund (NSDF),
Ministry of Youth Affairs &
Sports (MYAS), GoI
Total disbursements in CSR projects 204.31
Impact Assessment cost 0.34
Admin expenses 5.30
Total CSR expenditure in FY 2022-23 209.95
146 147
ANNEXURE-VIII TO BOARD’S REPORT
FORM NO. AOC -2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.
Form for Disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of
section 188 of the Companies Act, 2013 including certain arms length transaction under third proviso thereto.
1. Details of contracts or arrangements or transactions not at Arm’s length basis.
Name (s) of the related party & nature Nature of contracts/ Duration of Salient terms of the Justification for entering into such contracts or Date of approval by Amount paid as Date on which the special
of relationship arrangements/ transactions the contracts/ contracts or arrangements arrangements or transactions the Board advances, if any resolution was passed in
arrangements/ or transactions including General meeting as required
transaction the value, if any under first proviso to
section 188
REC Power Development & Consultancy Redeployment of existing 17 months or earlier Re-deployment of contract Existing manpower was well-versed and considering August 4, 2022 NIL Not required
Limited (RECPDCL) manpower, engaged through manpower who were recruitment of fresh manpower would take time, the
RECPDCL. earlier deployed under existing manpower engaged through RECPDCL was
(Wholly - Owned Subsidiary of REC)
Saubhagya scheme has redeployed under RDSS and for REC’s business in various
been redeployed under states.
RDSS Scheme & for REC
Business purposes, on cost
plus basis up to an amount
of ₹6.69 crore.
REC Power Development & Consultancy Appointment of M/s RECPDCL - Appointment of M/s Due to unwillingness to complete work by the then January 30, 2023 NIL Not required
Limited (RECPDCL) for work of Quality inspection RECPDCL for Quality agency and considering lower rate of per inspection of
of villages under DDUGJY new inspection of villages against villages, the work was allocated to RECPDCL.
(Wholly - Owned Subsidiary of REC)
scheme in JVVNL, Rajasthan Additional Households
state. works carried out under
DDUGJY new scheme in
JVVNL, Rajasthan state,
having financial implication
of approximately ₹2.55 lakh,
excluding taxes.
PFC Projects Limited (PPL) Issuance of letter of comfort to - Issuance of letter of comfort PPL is a wholly owned subsidiary of Power Finance March 9, 2023 NIL Not required
Bank for necessitating issuance of ₹100 crore by REC Limited Corporation Limited (PFC) and being lead member of the
[Wholly-Owned Subsidiary of Power
of Performance Bank Guarantee to Bank for necessitating bidding consortium, it was not possible for PFC to provide
Finance Corporation Limited (PFC)]
(PBG) to PFC Projects Limited issuance of PBG to PFC necessary comfort to PPL due to conflict of interest.
(PPL) in favour of PFC. Projects Limited (PPL) in
favour of PFC in respect
of Resolution Plan of PFC
Projects Limited and REC
along-with DVC & SJVNL
as Technical-cum-Equity
Partner.
2. Details of material contracts or arrangements or transactions at Arm’s length basis: No material contracts or arrangements or
transactions were entered by the Company with any Related Party, during the period under review.

(DIN: 01377212)
Place : Gurugram
148 149
ANNEXURE-IX TO BOARD’S REPORT
Details of Debenture Trustees Appointed by the Company for

Different Bond Series as on March 31, 2023
In terms of Regulation 53 of SEBI LODR Regulations, 2015
Sl. no. Name of Debenture Trustee Contact Details ISIN Series no. Secured / Unsecured Redemption Coupon Rate Listed at Registrar & Transfer Agent
date
NSE BSE
1 IDBI Trusteeship Services Limited Shri Krishnakant Sharma INE020B08427 94 Unsecured 9-Jun-2025 8.75% Yes No Beetal Financial & Computer Services (P)
Asian Building, Ground Floor, Phone: +91-22-4080 7000 INE020B08443 95-II Unsecured 14-Jul-2025 8.75% Yes No Limited, Beetal House, 3rd floor, 99 Madangir, Behind
17 R, Kamani Marg, Ballard Estate, Email: [email protected], INE020B08831 114 Unsecured 12-Apr-2023 8.82% Yes Yes LSC, Opp. Dada Harsukhdas Mandir,
Mumbai-400001 [email protected] INE020B08849 115 Unsecured 31-May-2023 8.06% Yes Yes New Delhi-110062
Website: www.idbitrustee.com Contact Person: Shri Sanjay Rastogi
Phone: +91-11-2996 1281-83
Email: [email protected],
[email protected]
Website: www.beetalfinancial.com
INE020B07IZ5 123-III-10yrs Secured 23-Aug-2024 9.34% Yes Yes KFin Technologies Limited
INE020B08880 128 Unsecured 21-Dec-2024 8.57% Yes Yes Selenium Tower B, Plot nos. 31 & 32,
Financial District, Nanakramguda
Serilingampally Mandal
Hyderabad-500032
INE020B08898 129 Unsecured 23-Jan-2025 8.23% Yes Yes Contact Person: Shri Gopala Krishna
INE020B08906 130 Unsecured 6-Feb-2025 8.27% Yes Yes Phone: 1-800-309-4001
INE020B08914 131 Unsecured 21-Feb-2025 8.35% Yes Yes Email: [email protected],
[email protected]
Website: https://www.kfintech.com/
2 Beacon Trusteeship Limited Shri Vitthal Naawandhar INE020B08BA1 162 Unsecured 9-Aug-2028 8.55% Yes Yes KFin Technologies Limited
4C & D, Siddhivinayak Chambers, Phone: +91-22-2655 8759 INE020B08BB9 163 Unsecured 25-Aug-2028 8.63% Yes Yes Selenium Tower B, Plot nos. 31 & 32,
Gandhi Nagar, Opp. MIG Cricket Club, Email: [email protected] INE020B08BG8 168 Unsecured 29-Nov-2028 8.56% Yes Yes Financial District, Nanakramguda
Bandra (East), Website: www.beacontrustee.co.in INE020B08BH6 169 Unsecured 7-Dec-2028 8.37% Yes Yes Serilingampally Mandal
Mumbai-400051 INE020B08BP9 175 Unsecured 28-Mar-2029 8.97% Yes Yes Hyderabad-500032
INE020B08BQ7 176 Unsecured 16-Apr-2029 8.85% Yes Yes Contact Person: Shri Gopala Krishna
INE020B08BS3 178 Unsecured 14-May-2029 8.80% Yes Yes Phone: 1-800-309-4001
INE020B08BV7 180-A Unsecured 25-Jun-2024 8.10% Yes Yes Email: [email protected],
INE020B08BU9 180-B Unsecured 25-Jun-2029 8.30% Yes Yes [email protected]
INE020B08BW5 182 Unsecured 22-Aug-2034 8.18% Yes Yes
INE020B08BX3 183 Unsecured 16-Sep-2034 8.29% Yes Yes
INE020B08DY7 184-A (Partly paid up) Unsecured 26-Sep-2029 8.25% Yes Yes
INE020B08CC5 184-B (D) Unsecured 26-Sep-2023 7.55% Yes Yes
INE020B08CF8 186-B Unsecured 26-Nov-2024 7.40% Yes Yes
INE020B08CI2 188-B Unsecured 31-Mar-2030 7.89% Yes Yes
INE020B08CJ0 189 Unsecured 31-Mar-2030 7.92% Yes Yes
INE020B08CK8 190-A Unsecured 20-Mar-2025 6.88% Yes Yes
INE020B08CN2 191-A Unsecured 30-Jun-2023 6.80% Yes Yes
INE020B08CM4 191-B Unsecured 30-Sep-2024 6.99% Yes Yes
INE020B08CP7 192 Unsecured 28-Feb-2030 7.50% Yes Yes
INE020B08CT9 195 Unsecured 22-Apr-2023 6.92% Yes Yes
INE020B08CU7 197 Unsecured 11-May-2030 7.55% Yes Yes
INE020B08CW3 198B Unsecured 21-May-2030 7.79% Yes Yes
INE020B08CX1 199 Unsecured 15-Jun-2030 7.96% Yes Yes
INE020B08CY9 200 PP-MLD Unsecured 30-Jun-2023 5.36% Yes Yes
INE020B08CZ6 201A Unsecured 31-Mar-2025 5.90% Yes Yes
INE020B08DA7 201B Unsecured 31-Mar-2031 6.90% Yes Yes
INE020B08DB5 202A Unsecured 30-Sep-2030 7.25% Yes Yes
INE020B08DC3 202B Unsecured 30-Sep-2023 5.69% Yes Yes
INE020B08DE9 203A Unsecured 20-Dec-2030 6.80% Yes Yes
INE020B08DF6 203B Unsecured 20-Dec-2025 5.85% Yes Yes
INE020B08DG4 204A Unsecured 31-Jan-2031 6.90% Yes Yes
150 151
date
NSE BSE
INE020B08DH2 204B Unsecured 31-Dec-2025 5.81% Yes Yes

INE020B08DJ8 205A Unsecured 31-Jan-2024 4.99% Yes Yes
INE020B08DK6 205B Unsecured 31-Jan-2026 5.94% Yes Yes
INE020B08DL4 206-PDI Unsecured Not Applicable* 7.97% Yes Yes
INE020B08DM2 207 Unsecured 31-Jan-2036 7.02% Yes Yes
INE020B08DO8 208 Unsecured 15-Mar-2036 7.40% Yes Yes
INE020B08DP5 209 Unsecured 20-Mar-2024 5.79% Yes Yes
INE020B08DR1 210 Unsecured 20-Jun-2024 5.74% Yes Yes
INE020B08DT7 211 Unsecured 31-Oct-2031 6.23% Yes Yes
INE020B08DU5 212 Unsecured 31-Oct-2024 Floating (7.07%) Yes Yes
INE020B08DV3 213 Unsecured 20-Mar-2032 6.92% Yes Yes
INE020B08DW1 214-A Unsecured 28-Feb-2026 7.32% Yes Yes
INE020B08DX9 214-B Unsecured 28-Feb-2033 7.50% Yes Yes
INE020B08DX9 214-B(reissue) Unsecured 28-Feb-2033 7.50% Yes Yes
INE020B08DZ4 215 Unsecured 30-Nov-2037 7.65% Yes Yes
INE020B08EA5 216 A Unsecured 31-Mar-2028 7.55% Yes Yes
INE020B08EB3 216 B Unsecured 30-Nov-2037 7.67% Yes Yes
INE020B08EC1 217 Unsecured 31-Mar-2033 7.53% Yes Yes
INE020B08ED9 218-A Unsecured 30-Jun-2026 7.56% Yes Yes
INE020B08EE7 218-B Unsecured 31-Jan-2033 7.69% Yes Yes
INE020B08EF4 219 Unsecured 28-Feb-2026 7.60% Yes Yes
INE020B08EH0 220 A Unsecured 31-Mar-2028 7.77% Yes Yes
INE020B08BC7 GOI-IV Unsecured 28-Sept-2028 8.70% Yes Yes
INE020B08EG2 220 B Unsecured 31-Mar-2033 7.69% Yes Yes
INE020B08BE3 GOI-V Unsecured 15-Nov-2028 8.54% Yes Yes
INE020B08BJ2 GOI-VI Unsecured 22-Jan-2029 8.80% Yes Yes
INE020B08BL8 GOI-VII Unsecured 8-Mar-2029 8.60% Yes Yes
INE020B08BO2 GOI-VIII Unsecured 25-Mar-2029 8.30% Yes Yes
INE020B08CO0 GOI-IX Unsecured 2-Mar-2030 7.14% Yes Yes
INE020B08CR3 GOI-X Unsecured 26-Mar-2030 8.25% Yes Yes
INE020B08CS1 GOI-XI Unsecured 31-Mar-2030 7.20% Yes Yes
INE020B08DI0 GOI-XII Unsecured 7-Jan-2031 6.45% Yes Yes
INE020B08DN0 GOI-XIII Unsecured 28-Jan-2031 6.63% Yes Yes
INE020B08DQ3 GOI-XIV Unsecured 26-Mar-2031 6.50% Yes Yes
3 Vistra ITCL (India) Limited ITCL Compliance Officer INE020B08724 Infra Bonds Series-II (2011-12) Unsecured 15-Feb-2027 9.15% Yes No Beetal Financial & Computer Services (P)
The IL&FS Financial Centre Phone: +91-22-26593535 INE020B08732 Limited, Beetal House, 3rd floor, 99 Madangir,
G Block, Plot C-22, Email: [email protected] INE020B07GH7 2011-12 Public Issue Tranche-1 Secured 29-Mar-2027 8.12% No Yes Behind LSC, Opp. Dada Harsukhdas Mandir,
BKC, Bandra (East) Website: www.vistraitcl.com New Delhi-110062
8.32%
Mumbai-400051 Contact Person: Shri Sanjay Rastogi
Phone: +91-11-2996 1281-83
Email: [email protected]
Website: www.beetalfinancial.com
KFin Technologies Limited
Selenium Tower B, Plot nos. 31 & 32,
Financial District, Nanakramguda
Serilingampally Mandal
Hyderabad-500032
Contact Person: Shri Gopala Krishna
Phone: 1-800-309-4001
Email: [email protected],
[email protected]
* Perpertual Det Instruments
152 153
date
NSE BSE
4 SBICAP Trustee Company Limited Shri Prashant A. Joshi. INE020B07GU0 2012-13 Private Placement Secured 21-Nov-2022 7.21% Yes Yes KFin Technologies Limited
Mistry Bhavan, 4th Floor, Phone: +91-22-4302 5555 INE020B07GV8 2012-13 Private Placement Secured 22-Nov-2027 7.38% Yes Yes Selenium Tower B, Plot Nos. 31 & 32,
122 Dinshaw Vachha Road, Email: [email protected] INE020B07GW6 2012-13 Public Issue Tranche-1 Secured 19-Dec-2022 7.22% Yes Yes Financial District, Nanakramguda
Churchgate, Mumbai-400020 Website: www.sbicaptrustee.com 7.72% Yes Yes Serilingampally Mandal
INE020B07GX4 2012-13 Public Issue Tranche-1 Secured 20-Dec-2027 7.38% Yes Yes Hyderabad-500032
7.88% Yes Yes Contact Person: Shri Gopala Krishna
INE020B07GZ9 2012-13 Public Issue Tranche-2 Secured 27-Mar-2028 7.04% Yes Yes Phone: 1-800-309-4001
7.54% Yes Yes Email: [email protected],
INE020B07HM5 2013-14 Private Placement-1 Secured 29-Aug-2023 8.01% Yes Yes [email protected]
INE020B07HN3 2013-14 Private Placement-1 Secured 29-Aug-2028 8.46% Yes Yes
INE020B07HO1 2013-14 Public Issue Tranche-1 Secured 25-Sep-2023 8.01% Yes Yes
INE020B07HR4 2013-14 Public Issue Tranche-1 Secured 25-Sep-2023 8.26% Yes Yes
INE020B07HP8 2013-14 Public Issue Tranche-1 Secured 25-Sep-2028 8.46% Yes Yes
INE020B07HS2 2013-14 Public Issue Tranche-1 Secured 25-Sep-2028 8.71% Yes Yes
INE020B07HQ6 2013-14 Public Issue Tranche-1 Secured 26-Sep-2033 8.37% Yes Yes
INE020B07HT0 2013-14 Public Issue Tranche-1 Secured 26-Sep-2033 8.62% Yes Yes
INE020B07HU8 2013-14 Private Placement-2 Secured 11-Oct-2023 8.18% Yes Yes
INE020B07HV6 2013-14 Private Placement-2 Secured 11-Oct-2028 8.54% Yes Yes
INE020B07IC4 2013-14 Public Issue Tranche-2 Secured 22-Mar-2024 8.19% Yes Yes
INE020B07IF7 2013-14 Public Issue Tranche-2 Secured 22-Mar-2024 8.44% Yes Yes
INE020B07ID2 2013-14 Public Issue Tranche-2 Secured 23-Mar-2029 8.63% Yes Yes
INE020B07IG5 2013-14 Public Issue Tranche-2 Secured 23-Mar-2029 8.88% Yes Yes
INE020B07IE0 2013-14 Public Issue Tranche-2 Secured 24-Mar-2034 8.61% Yes Yes
INE020B07IH3 2013-14 Public Issue Tranche-2 Secured 24-Mar-2034 8.86% Yes Yes
INE020B07JO7 2015-16 Private Placement Secured 23-Jul-2025 7.17% Yes Yes
INE020B07JP4 2015-16 Public Issue Tranche-1 Secured 5-Nov-2025 6.89% No Yes
INE020B07JQ2 2015-16 Public Issue Tranche-1 Secured 5-Nov-2025 7.14% No Yes
INE020B07JR0 2015-16 Public Issue Tranche-1 Secured 5-Nov-2030 7.09% No Yes
INE020B07JS8 2015-16 Public Issue Tranche-1 Secured 5-Nov-2030 7.34% No Yes
INE020B07JT6 2015-16 Public Issue Tranche-1 Secured 5-Nov-2035 7.18% No Yes
INE020B07JU4 2015-16 Public Issue Tranche-1 Secured 5-Nov-2035 7.43% No Yes
INE020B07KU2 54EC Series XII (2018-19) Secured 30-Apr-2023 5.75% No No
INE020B07KV0 54EC Series XII (2018-19) Secured 31-May-2023 5.75% No No
INE020B07KW8 54EC Series XII (2018-19) Secured 30-Jun-2023 5.75% No No
INE020B07KX6 54EC Series XII (2018-19) Secured 31-Jul-2023 5.75% No No
INE020B07KY4 54EC Series XII (2018-19) Secured 31-Aug-2023 5.75% No No
INE020B07KZ1 54EC Series XII (2018-19) Secured 30-Sep-2023 5.75% No No
INE020B07LA2 54EC Series XII (2018-19) Secured 31-Oct-2023 5.75% No No
INE020B07LB0 54EC Series XII (2018-19) Secured 30-Nov-2023 5.75% No No
INE020B07LC8 54EC Series XII (2018-19) Secured 31-Dec-2023 5.75% No No
INE020B07LD6 54EC Series XII (2018-19) Secured 31-Jan-2024 5.75% No No
INE020B07LE4 54EC Series XII (2018-19) Secured 28-Feb-2024 5.75% No No
INE020B07LF1 54EC Series XII (2018-19) Secured 31-Mar-2024 5.75% No No
INE020B07LG9 54EC Series XIII (2019-20) Secured 30-Apr-2024 5.75% No No
INE020B07LH7 54EC Series XIII (2019-20) Secured 31-May-2024 5.75% No No
INE020B07LI5 54EC Series XIII (2019-20) Secured 30-Jun-2024 5.75% No No
INE020B07LJ3 54EC Series XIII (2019-20) Secured 31-Jul-2024 5.75% No No
INE020B07LK1 54EC Series XIII (2019-20) Secured 31-Aug-2024 5.75% No No
INE020B07LL9 54EC Series XIII (2019-20) Secured 30-Sep-2024 5.75% No No
INE020B07LM7 54EC Series XIII (2019-20) Secured 31-Oct-2024 5.75% No No
INE020B07LN5 54EC Series XIII (2019-20) Secured 30-Nov-2024 5.75% No No
INE020B07LO3 54EC Series XIII (2019-20) Secured 31-Dec-2024 5.75% No No
INE020B07LP0 54EC Series XIII (2019-20) Secured 31-Jan-2025 5.75% No No
INE020B07LQ8 54EC Series XIII (2019-20) Secured 28-Feb-2025 5.75% No No
INE020B07LR6 54EC Series XIII (2019-20) Secured 31-Mar-2025 5.75% No No
INE020B07LS4 54EC Series XIV (2020-21) Secured 30-Apr-2025 5.75% No No
154 155
date
NSE BSE
Shri Prashant A. Joshi INE020B07LT2 54EC Series XIV (2020-21) Secured 31-May-2025 5.75% No No KFin Technologies Limited
Phone: +91-22-4302 5576, INE020B07LU0 54EC Series XIV (2020-21) Secured 30-Jun-2025 5.75% No No Selenium Tower B, Plot Nos. 31 & 32,
+91-22-2204 0465 INE020B07LV8 54EC Series XIV (2020-21) Secured 31-Jul-2025 5.75% No No Financial District, Nanakramguda
Email: [email protected], INE020B07LW6 54EC Series XIV (2020-21) Secured 31-Aug-2025 5.00% No No Serilingampally Mandal
[email protected] INE020B07LX4 54EC Series XIV (2020-21) Secured 30-Sep-2025 5.00% No No Hyderabad-500032
Website: www.sbicaptrustee.com INE020B07LY2 54EC Series XIV (2020-21) Secured 31-Oct-2025 5.00% No No Contact Person: Shri Gopala Krishna
INE020B07LZ9 54EC Series XIV (2020-21) Secured 30-Nov-2025 5.00% No No Phone: 1-800-309-4001
INE020B07MA0 54EC Series XIV (2020-21) Secured 31-Dec-2025 5.00% No No Email: [email protected],
INE020B07MB8 54EC Series XIV (2020-21) Secured 31-Jan-2026 5.00% No No [email protected]
INE020B07MC6 54EC Series XIV (2020-21) Secured 28-Feb-2026 5.00% No No
INE020B07MD4 54EC Series XIV (2020-21) Secured 31-Mar-2026 5.00% No No
INE020B07ME2 54EC Series XV (2021-22) Secured 30-Apr-2026 5.00% No No
INE020B07MF9 54EC Series XV (2021-22) Secured 31-May-2026 5.00% No No
INE020B07MG7 54EC Series XV (2021-22) Secured 30-Jun-2026 5.00% No No
INE020B07MH5 54EC Series XV (2021-22) Secured 31-Jul-2026 5.00% No No
INE020B07MI3 54EC Series XV (2021-22) Secured 31-Aug-2026 5.00% No No
INE020B07MJ1 54EC Series XV (2021-22) Secured 30-Sep-2026 5.00% No No
INE020B07MK9 54EC Series XV (2021-22) Secured 31-Oct-2026 5.00% No No
INE020B07ML7 54EC Series XV (2021-22) Secured 30-Nov-2026 5.00% No No
INE020B07MM5 54EC Series XV (2021-22) Secured 31-Dec-2026 5.00% No No
INE020B07MN3 54EC Series XV (2021-22) Secured 31-Jan-2027 5.00% No No
INE020B07MO1 54EC Series XV (2021-22) Secured 28-Feb-2027 5.00% No No
INE020B07MP8 54EC Series XV (2021-22) Secured 31-Mar-2027 5.00% No No
INE020B07MQ6 54EC Series XVI (2022-23) Secured 30-Apr-2027 5.00% No No
INE020B07MR4 54EC Series XVI (2022-23) Secured 31-May-2027 5.00% No No
INE020B07MS2 54EC Series XVI (2022-23) Secured 30-Jun-2027 5.00% No No
INE020B07MT0 54EC Series XVI (2022-23) Secured 31-Jul-2027 5.00% No No
INE020B07MU8 54EC Series XVI (2022-23) Secured 31-Aug-2027 5.00% No No
INE020B07MV6 54EC Series XVI (2022-23) Secured 30-Sep-2027 5.00% No No
INE020B07MW4 54EC Series XVI (2022-23) Secured 31-Oct-2027 5.00% No No
INE020B07MX2 54EC Series XVI (2022-23) Secured 30-Nov-2027 5.00% No No
INE020B07MY0 54EC Series XVI (2022-23) Secured 31-Dec-2027 5.00% No No
INE020B07MZ7 54EC Series XVI (2022-23) Secured 31-Jan-2028 5.00% No No
INE020B07NA8 54EC Series XVI (2022-23) Secured 29-Feb-2028 5.00% No No
INE020B07NB6 54EC Series XVI (2022-23) Secured 31-Mar-2028 5.00% No No
INE020B08930 133 Unsecured 10-Apr-2025 8.30% Yes Yes
INE020B08963 136 Unsecured 7-Oct-2025 8.11% Yes Yes
INE020B08AA3 140 Unsecured 7-Nov-2026 7.52% Yes Yes
INE020B08AC9 142 Unsecured 30-Dec-2026 7.54% Yes Yes
INE020B08AH8 147 Unsecured 12-Mar-2027 7.95% Yes Yes
INE020B08AQ9 156 Unsecured 10-Dec-2027 7.70% Yes Yes
INE020B08AX5 GOI-I Unsecured 21-Mar-2028 8.09% Yes Yes
INE020B08AY3 GOI-II Unsecured 24-Mar-2028 8.01% Yes Yes
INE020B08AZ0 GOI-III Unsecured 27-Mar-2028 8.06% Yes Yes

(DIN: 01377212)
Place : Gurugram
156 157
Balance Sheet as at 31st March 2023 Statement of Profit and Loss for the year ended 31st March 2023
(₹ in Crores) (₹ in Crores)
S. Particulars Note No. As at As at Sl. Particulars Note No. Year ended Year ended
No. 31-03-2023 31-03-2022 no. 31.03.2023 31.03.2022
ASSETS Revenue from Operations
(1) Financial Assets (i) Interest Income 27 38,836.24 38,186.46
(a) Cash and cash equivalents 6 39.00 126.40 (ii) Dividend Income 28 39.34 26.64
(b) Bank balances other than (a) above 7 1,948.34 2,295.30 (ii) Fees and Commission Income 29 287.17 572.82
(c) Derivative financial instruments 8 8,981.61 5,510.17 (iv) Net gain/ (loss) on fair value changes 34 45.31 346.57
(d) Loans 9 422,083.91 371,930.54 I. Total Revenue from Operations (i to iv) 39,208.06 39,132.49
(e) Investments 10 3,137.98 2,157.97 II. Other Income 30 44.67 97.96
(f ) Other financial assets 11 24,400.28 24,396.94 III. Total Income (I+II) 39,252.73 39,230.45
Expenses
Total - Financial Assets (1) 460,591.12 406,417.32
(i) Finance Costs 31 23,737.66 22,052.91
(2) Non-Financial Assets
(ii) Net translation/ transaction exchange loss 32 1,114.04 799.05
(a) Current tax assets (net) 12 295.78 179.64 (iii) Fees and commission Expense 33 16.29 16.73
(b) Deferred tax assets (net) 13 3,276.99 3,134.74 (iv) Impairment on financial instruments 35 114.91 3,473.31
(c) Property, Plant & Equipment 14 638.91 623.67 (v) Employee Benefits Expenses 36 181.63 159.61
(d) Capital Work-in-Progress 14 2.72 6.07 (vi) Depreciation and amortization 37 24.09 17.96
(e) Other Intangible Assets 14 1.62 4.25 (vii) Corporate Social Responsibility Expenses 38 202.65 170.67
(f ) Other non-financial assets 15 69.65 46.06 (viii) Other Expenses 39 122.69 115.31
Total - Non-Financial Assets (2) 4,285.67 3,994.43 IV. Total Expenses (i to viii) 25,513.96 26,805.55
(3) Assets classified as held for sale 16 0.34 0.86 V. Profit before Tax (III-IV) 13,738.77 12,424.90
Total ASSETS (1+2+3) 464,877.13 410,412.61 VI. Tax Expense 40
LIABILITIES AND EQUITY (i) Current Tax
LIABILITIES - Current Year 2,668.58 3,051.33
(1) Financial Liabilities - Earlier Years (147.29) (3.96)
(a) Derivative financial instruments 8 976.95 553.14 (ii) Deferred Tax 162.84 (668.39)
(b) Debt Securities 17 236,948.99 219,633.57 Total Tax Expense (i+ii) 2,684.13 2,378.98
(c) Borrowings (other than debt securities) 18 137,114.13 106,651.59 VII. Profit for the period 11,054.64 10,045.92
(d) Subordinated Liabilities 19 6,773.30 6,816.47 Other comprehensive Income/(Loss)
(e) Other financial liabilities 20 25,174.58 25,575.84 (i) Items that will not be reclassified to profit or loss
(a) Re-measurement gains/(losses) on defined benefit plans (5.99) (8.33)
Total - Financial Liabilities (1) 406,987.95 359,230.61
- Tax impact on above 1.51 2.10
(2) Non-Financial Liabilities
(b) Changes in Fair Value of Equity Instruments measured at Fair Value through (58.16) 22.19
(a) Current tax liabilities (net) 21 - 10.25
Other Comprehensive Income (FVOCI)
(b) Provisions 22 110.94 104.51 - Tax impact on above (0.32) 2.55
(c) Other non-financial liabilities 23 98.57 81.64 Sub-Total (i) (62.96) 18.51
Total - Non-Financial Liabilities (2) 209.51 196.40 (ii) Items that will be reclassified to profit or loss
(3) EQUITY (a) Effective portion of gains and loss on hedging instruments in cash flow hedges 542.33 480.84
(a) Equity Share Capital 24 2,633.22 1,974.92 - Tax impact on above (136.49) (121.02)
(b) Instruments Entirely Equity In Nature 25 558.40 558.40 (b) Cost of hedging reserve (1,755.82) (584.51)
(c) Other equity 26 54,488.05 48,452.28 - Tax impact on above 441.90 147.11
Total - Equity (3) 57,679.67 50,985.60 Sub-Total (ii) (908.08) (77.58)
Total - LIABILITIES AND EQUITY (1+2+3) 464,877.13 410,412.61 VIII. Other comprehensive Income/(Loss) for the period (i+ii) (971.04) (59.07)
Company Overview and Significant Accounting Policies 1 to 5 IX. Total comprehensive Income for the period (VII+VIII) 10,083.60 9,986.85
X. Basic & Diluted Earnings per Equity Share of ₹ 10 each (in ₹) 41
Accompanying Notes to Financial Statements 1 to 67 (1) For continuing operations 41.85 38.02
For and on behalf of the Board (2) For discontinued operations - -
(3) For continuing and discontinued operations 41.85 38.02
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan Company Overview and Significant Accounting Policies 1 to 5
ED & Company Secretary Director (Finance) Chairman & Managing Director
DIN - 06629871 DIN - 01377212 Accompanying Notes to Financial Statements 1 to 67
For and on behalf of the Board
In terms of our Audit Report of even date J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. DIN - 06629871 DIN - 01377212
Chartered Accountants Chartered Accountants In terms of our Audit Report of even date
Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091 For S.K. Mittal & Co. For O.P. Bagla & Co. LLP.
S.Murthy Atul Aggarwal Chartered Accountants Chartered Accountants
Partner Partner Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091
M.No. : 072290 M.No. : 092656 S. Murthy Atul Aggarwal
Partner Partner
M.No. : 072290 M.No. : 092656
Place: Mumbai Place: Mumbai
Date: 17th May 2023 Date: 17th May 2023
158 159
Statement of Cash Flows for the year ended 31st March 2023 Statement of Cash Flows for the year ended 31st March 2023 (Contd.)
Particulars Year ended 31-03-2023 Year ended 31-03-2022 Particulars Year ended 31-03-2023 Year ended 31-03-2022
A. Cash Flow from Operating Activities : Cash & Cash Equivalents as at the beginning of the period 126.40 1,140.49
Net Profit before Tax 13,738.77 12,424.90 Cash & Cash Equivalents as at the end of the period (48.59) 126.40
Adjustments for: During the year, the Company has received Dividend of ₹39.34 crores (previous year ₹26.64crores). Further, during the year, the Company has paid an amount of
1. Loss/ (Gain) on derecognition of Property, Plant and Equipment (net) 6.64 0.97 ₹209.95 crores (previous year ₹167.61 crores) towards Corporate Social Responsibility.
2. Loss/ (Gain) on derecognition of Assets held for sale (net) (4.08) (30.19)
Components of Cash & Cash Equivalents as at end of the year are:
3. Loss/ (Gain) on cessation of significant influence in Joint Venture (EESL) - (29.01) (₹ in Crores)
4. Depreciation & Amortization 24.09 17.96
Particulars As at 31-03-2023 As at 31-03-2022
5. Impairment losses on Financial Instruments 114.91 3,473.31
- Cash on Hand (including imprest) - 0.02
6. Loss/ (Gain) on Fair Value Changes (net) (43.76) (338.58)
7. Effective Interest Rate (EIR) in respect of Loan Assets and Borrowings (15.58) (88.22) - Balances with Banks 31.31 124.01
8. Interest on Commercial Paper - 14.76 - Short-term Deposits with Scheduled Banks 7.69 2.37
9. Unrealised Foreign Exchange Translation Loss/ (Gain) 963.93 943.16 - Bank Overdraft (87.59) -
10.Interest on Investments (39.53) (51.88) Total Cash & Cash Equivalents (48.59) 126.40
Operating Profit/ (Loss) before Changes in Operating Assets & Liabilities 14,745.39 16,337.18
Inflow / (Outflow) on account of : Reconciliation of liabilities arising from financing activities
1. Loan Assets (50,424.82) (9,877.12) (₹ in Crores)
2. Derivatives 790.33 (2,510.91) Particulars Opening Cash Flows Movement Other Adjustments Closing
Balance during the in Interest Balance
3. Other Financial and Non- Financial Assets 193.95 (580.37) Exchange Ind AS
year (net) Accrued *
4. Other Financial and Non- Financial Liabilities & Provisions (151.53) (1,186.90) Differences Adjustments
Cash flow from Operations (34,846.68) 2,181.88 Year ended 31-03-2023
1. Income Tax Paid (including TDS) (2,734.77) (3,076.64) Rupee Debt Securities 189,606.42 14,823.67 (33.08) - (138.56) 204,258.45
2. Income Tax refund 99.79 23.26 Commercial Paper - - - - - -

Rupee Term Loans/ WCDL / Overdrafts 61,460.56 14,896.53 65.87 - - 76,422.96
Net Cash Flow from Operating Activities (37,481.66) (871.50)
Foreign Currency Debt Securities & other Borrowings 75,218.18 11,643.52 199.88 6,328.39 (8.26) 93,381.71
B. Cash Flow from Investing Activities
Subordinated Liabilities 6,816.47 - (0.01) - (43.16) 6,773.30
1. Sale of Property, Plant & Equipment 0.02 0.10
Total 333,101.63 41,363.72 232.66 6,328.39 (189.98) 380,836.42
2. Sale of assets held for sale 4.60 31.24
Year ended 31-03-2022
3. Investment in Property, Plant & Equipment (incl. CWIP & Capital Advances) (17.62) (47.84) Rupee Debt Securities 211,267.66 (20,827.69) (859.84) - 26.29 189,606.42
4. Investment in Intangible Assets (including intangible assets under (0.01) (0.25) Commercial Paper - (14.76) - - 14.76 -
development & Capital Advances)
Rupee Term Loans/ WCDL/ Overdrafts 59,281.36 2,164.16 15.04 - - 61,460.56
5. Finance Costs Capitalised (0.03) (5.10)
6. Sale/ (Investment) in Equity Shares 10.13 431.17
7. Redemption/ (Investment) in High Quality Liquid Assets (HQLAs) (net) (457.82) (716.17) Total 329,782.31 2,524.72 (802.66) 1,770.70 (173.44) 333,101.63
8. Redemption/ (Investment) in Debt Securities other than HQLAs (net) (343.14) 96.53 * Movement in Interest Accrued has been considered in ‘Operating Liabilities’ as Cash Flow from Operating Activities.
Net Cash Flow from Investing Activities (803.87) (210.32) Note : Previous year figures have been rearranged and regrouped wherever necessary.
C. Cash Flow from Financing Activities
1. Issue/ (Redemption) of Rupee Debt Securities (net) 14,823.67 (20,827.69)
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan
2. Issue/ (Redemption) of Commercial Paper (net) - (14.76) ED & Company Secretary Director (Finance) Chairman & Managing Director
3. Raising/ (Repayments) of Rupee Term Loans/ WCDL from Banks/ FIs (net) 14,808.94 2,164.16 DIN - 06629871 DIN - 01377212
4. Raising/ (Repayments) of Foreign Currency Debt Securities and 11,643.52 21,203.01 In terms of our Audit Report of even date
Borrowings (net)
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP.
5. Expenses on issue of Bonus Equity Shares (0.71) -
Chartered Accountants Chartered Accountants
6. Coupon payment on Perpetual Debt Instruments entirely equity in nature (44.50) (45.60) Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091
7. Payment of Dividend on Equity Shares (3,120.37) (2,411.37) S. Murthy Atul Aggarwal
Partner Partner
8. Repayment towards Lease Liability (0.01) (0.02)
M.No. : 072290 M.No. : 092656
Net Cash flow from Financing Activities 38,110.54 67.73
Net Increase/ (Decrease) in Cash & Cash Equivalents (174.99) (1,014.09) Place: Mumbai
Date: 17th May 2023
160 161
Statement of Changes in Equity for the year ended 31st March 2023
A Equity share capital (₹ in Crores)
Particulars As at 31.03.2023 As at 31.03.2022
Balance at the beginning of the year 1,974.92 1,974.92
Changes in equity share capital during the year* 658.30 -
Balance at the end of the year 2,633.22 1,974.92
Refer note 24 for detail
* During the year, the Company has issued 65,83,06,000 equity shares of ₹ 10 each as fully paid-up bonus shares in the ratio of 1 (One) equity
share for every 3 (Three) equity share outstanding on the record date i.e. 18th August 2022.
B Instruments entirely equity in nature (₹ in Crores)

Balance at the beginning of the year 558.40 558.40
Changes in instruments entirely equity in nature during the year - -
Balance at the end of the year 558.40 558.40
C. Other Equity
Particulars Reserves & Surplus Reserves & Surplus Effective Costs of Total
Portion of Hedging
Special Reserve Reserve for Bad Statutory Reserve Securities Foreign Currency General Reserve Retained Earnings FVOCI- Equity Cash Flow reserve
created u/s and doubtful u/s 45-IC of Premium Monetary Item Instruments Hedges
36(1) (viii) of the debts u/s 36(1) Reserve Bank of Account Translation
Income Tax Act, (viia) of the Income India Act, 1934 Difference Account
1961 Tax Act, 1961
Balance as at 31st March 2021 19,222.23 2,128.41 3,804.00 2,236.54 (573.16) 9,850.03 4,325.09 24.07 (165.61) 41.45 40,893.05
Profit for the year 10,045.92 10,045.92
Remeasurement of Defined Benefit Plans (net of (6.23) (6.23)
taxes)
Recognition through Other Comprehensive 24.74 359.82 (437.40) (52.84)
Income (net of taxes)
Total Comprehensive Income for the year - - - - - - 10,039.69 24.74 359.82 (437.40) 9,986.85
Transferred to/ (from) Retained Earnings 3,080.70 - 2,010.00 - (5,090.70) -
Transferred to General Reserve (1,931.59) 1,931.59 - -
Reclassification of gain/ (loss) on sale/ 86.79 (86.79) -
extinguishment of FVOCI equity instrument (net
of taxes)
Foreign Currency Translation gain/ (loss) on long (216.94) (216.94)
term monetary items during the year
Amortisation during the year 234.81 234.81
Coupon payment on Instrument Entirely Equity (34.12) (34.12)
in Nature (Perpetual Debt Instruments) (Net of
Taxes)
Sub-total 3,080.70 (1,931.59) 2,010.00 - 17.87 1,931.59 (5,038.03) (86.79) - - (16.25)
Dividends (2,411.37) (2,411.37)
Sub-total- Transaction with owners - - - - - - (2,411.37) - - - (2,411.37)
Balance as at 31st March 2022 22,302.93 196.82 5,814.00 2,236.54 (555.29) 11,781.62 6,915.38 (37.98) 194.21 (395.95) 48,452.28
162 163
C. Other Equity (Contd.) (₹ in Crores) (₹ in Crores)
Particulars Reserves & Surplus Reserves & Surplus Effective Costs of Total
Portion of Hedging
Special Reserve Reserve for Bad Statutory Reserve Securities Foreign Currency General Reserve Retained Earnings FVOCI- Equity Cash Flow reserve
created u/s and doubtful u/s 45-IC of Premium Monetary Item Instruments Hedges
36(1) (viii) of the debts u/s 36(1) Reserve Bank of Account Translation
Income Tax Act, (viia) of the Income India Act, 1934 Difference Account
1961 Tax Act, 1961
Balance as at 31st March 2022 22,302.93 196.82 5,814.00 2,236.54 (555.29) 11,781.62 6,915.38 (37.98) 194.21 (395.95) 48,452.28
Profit for the year 11,054.64 11,054.64
Remeasurement of Defined Benefit Plans (net of (4.48) (4.48)
taxes)
Recognition through Other Comprehensive (58.48) 405.84 (1,313.92) (966.56)
Income (net of taxes)
Total Comprehensive Income for the year - - - - - - 11,050.16 (58.48) 405.84 (1,313.92) 10,083.60
Transferred to/ (from) Retained Earnings 2,674.96 - 2,211.15 - (4,886.11) -
Transferred to General Reserve - (196.82) 196.82 - -
Reclassification of gain/ (loss) on sale/ 5.01 (5.01) -
extinguishment of FVOCI equity instrument (net
of taxes)
Foreign Currency Translation gain/ (loss) on long (487.03) (487.03)
term monetary items during the year
Amortisation during the year 251.88 251.88
Coupon payment on Instrument Entirely Equity (33.30) (33.30)
in Nature (Perpetual Debt Instruments) (Net of
Taxes)
Sub-total 2,674.96 (196.82) 2,211.15 - (235.15) 196.82 (4,914.40) (5.01) - - (268.45)
Utilised for issue of Bonus Equity Shares (658.30) - (658.30)
Expenses incurred on issue of Bonus Equity Shares (0.71) (0.71)
Dividends (3,120.37) (3,120.37)
Sub-total- Transaction with owners - - - (659.01) - - (3,120.37) - - - (3,779.38)
Balance as at 31st March 2023 24,977.89 - 8,025.15 1,577.53 (790.44) 11,978.44 9,930.77 (101.47) 600.05 (1,709.87) 54,488.05
Refer Note No. 26.1 for details regarding drawdown/ transfers from Reserves
Accompanying Notes to Financial Statements 1 to 67

In terms of our Report of even date
Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091
S. Murthy Atul Aggarwal
Partner Partner
DIN - 06629871 DIN - 01377212
M.No. : 072290 M.No. : 092656
Place: Mumbai
Date: 17th May 2023
164 165
Notes to Accounts Notes to Accounts
1. Company Overview Functional and presentation currency Dividend on financial assets subsequently measured at fair 3.6 Property, Plant and Equipment (PPE)
value through profit and loss is recognised separately under
REC Limited (“REC” or the “Company”) was incorporated in the The financial statements are presented in Indian Rupee (‘INR’) the head ‘Dividend Income’. Recognition and initial measurement
year 1969. The Company is domiciled in India and is limited which is also the functional currency of the Company.
Other services Land
by shares, having its registered office and principal place
of business at Core-4, SCOPE Complex, 7, Lodhi Road, New 3.2 Income recognition Land held for use is initially recognized at cost. For land, as no
Fees/ charges on loan assets, other than those considered an
Delhi-110003, India. The books of accounts are maintained adjustment to EIR, are accounted for on accrual basis. Pre- finite useful life can be determined, related carrying amounts
Interest income
at the Corporate Office situated at Plot no. I-4, Sector-29, payment premium is accounted for by the Company in the are not amortized.
Gurugram, Haryana, in addition to the registered office of Interest income is recognized on time proportion basis taking year of receipt.
the Company. The Company has offices spread across the into account the amount outstanding and rate applicable. Land also includes land treated as a Right of Use asset under
country, mainly in the State Capitals and one training center 3.3 Borrowing costs lease agreement earlier classified as finance lease and is
at Hyderabad. Unless otherwise specified, the recoveries from the borrowers
amortized over the lease term.
are appropriated in the order of (i) costs and expenses of REC Borrowing costs consist of interest and other costs that the
The Company is a Government of India Enterprise engaged (ii) delayed and penal interest including interest tax, if any Company incurred in connection with the borrowing of Other Tangible assets
in extending financial assistance across the power sector
(iii) overdue interest including interest tax, if any and (iv) funds. Borrowing costs that are directly attributable to the
value chain and is a Systemically Important (Non-Deposit PPE other than land is initially recognized at acquisition cost
repayment of principal; the oldest being adjusted first, except acquisition and/or construction of a qualifying asset, till the
Accepting or Holding) Non-Banking Finance Company
for credit impaired loans and recalled loans, where principal time such qualifying asset becomes ready for its intended or construction cost, including any costs directly attributable
(NBFC) registered with Reserve Bank of India (RBI). Being an
amount is appropriated only after the complete recovery of use, are capitalized. A qualifying asset is one that necessarily to bringing the assets to the location and condition necessary
NBFC, the company is regulated by Reserve Bank of India.
other costs, expenses, delayed and penal interest and overdue takes a substantial period to get ready for its intended use. for it to be capable of operating in the manner intended by
The company has been accorded with the status of a interest including interest tax, if any. The recoveries under the Company’s management.
‘Maharatna’ Central Public Sector Enterprise by the One Time Settlement (OTS)/ Insolvency and Bankruptcy Code All other borrowing costs are charged to the Statement of
Department of Public Enterprises, under the Ministry of Profit and Loss on an accrual basis as per the effective interest Subsequent costs are included in the asset’s carrying amount
(IBC) proceedings are appropriated first towards the principal
Finance. rate method. or recognized as a separate asset, as appropriate, only when it
outstanding and remaining recovery thereafter, towards
REC is a leading Infrastructure Finance Company in India interest and other charges, if any. is probable that future economic benefits associated with the
3.4 Earnings per share item will flow to the Company beyond one year. Maintenance
and the principal products of REC are interest-bearing loans
For financial assets measured at amortized cost, interest or servicing costs of PPE are recognized in the Statement of
to State Electricity Boards, State Power utilities/State Power Basic earnings per share is calculated by dividing the net
Departments and Private sector for all segments of Power income is recorded using the effective interest rate (EIR), i.e. Profit and Loss as incurred.
the rate that exactly discounts estimated future cash receipts profit or loss for the year attributable to equity shareholders
infrastructure.
through the expected life of the financial asset to the net (after deducting attributable taxes) by the weighted average Subsequent measurement (depreciation method, useful lives,
The shares of the Company are listed on National Stock carrying amount of the financial assets. number of equity shares outstanding during the period. residual value, and impairment)
Exchange of India Limited and BSE Limited. Further, various
Interest on financial assets subsequently measured at fair To calculate diluted earnings per share, the net profit or PPE are subsequently measured at cost less accumulated
debt securities of the Company are also listed on the Stock
Exchanges value through profit and loss is recognized on an accrual loss for the year attributable to equity shareholders and the depreciation and impairment losses. Depreciation on PPE is
basis in accordance with the terms of the respective contract weighted average number of shares outstanding during the provided on the straight-line method over the useful life of
2. Statement of Compliance and Basis of Preparation and is disclosed separately under the head interest income. period are adjusted for the effects of all dilutive potential the assets as prescribed under Part ‘C’ of Schedule II of the
equity shares. Companies Act, 2013.
These Standalone Financial Statements comply with Ind AS Interest income on credit-impaired loan assets, unless
notified under the Companies (Indian Accounting Standards) realized, is not being recognised as a matter of prudence, 3.5 Foreign Currency Translation Depreciation on assets purchased/sold during the year is
Rules, 2015 (as amended), applicable provisions of the pending the outcome of resolutions of stressed assets. charged for the full month if the asset is in use for more than
Companies Act, 2013 and other applicable regulatory norms Foreign currency transactions and balances
Rebate on account of timely payment of interest by borrowers 15 days. Depreciation on assets purchased during the year up
/ guidelines including those issued by RBI.
is recognized on receipt of entire interest amount due in time, Foreign currency transactions are translated into the to `5,000/- is provided @ 100%.
The financial statements for the year ended 31st March 2023 functional currency of the Company using the exchange rates
in accordance with the terms of the respective contract and is The residual values, useful lives, and method of depreciation
were authorized and approved for issue by the Board of prevailing on the date of the transaction.
netted against the corresponding interest income. are reviewed at the end of each financial year. PPE other than
Directors on 17th May 2023.
Income from Government schemes Foreign exchange gains and losses resulting from the land is tested for impairment whenever events or changes in
3. Significant Accounting Policies settlement of such transactions and the re-measurement of circumstances indicate that the carrying amount may not be
Income of agency fee on Government schemes is recognized monetary items denominated in foreign currency at period-
The significant accounting policies applied in preparation of recoverable.
on accrual basis based on the services rendered. end exchange rates are recognized in the Statement of
the financial statements are as given below: De-recognition
Dividend income Profit or Loss. However, for the long-term monetary items
3.1 Basis of Preparation and Measurement recognized in the financial statements before 1st April 2018, An item of PPE and any significant part initially recognized
Income from dividend on shares of corporate bodies and such gains and losses are accumulated in a “Foreign Currency
units of mutual funds is taken into account on accrual basis is derecognized upon disposal or when no future economic
The financial statements have been prepared on going Monetary Item Translation Difference Account” and amortized
concern basis following accrual system of accounting on when right to receive payment is established. benefits are expected from its use or disposal. Any gain or
over the balance period of such long term monetary item, by
historical cost basis except for certain financial assets and loss arising on de-recognition of an item of PPE is determined
Provided that in case of final dividend, the right to receive recognition as income or expense in each of such periods.
financial liabilities which are measured at fair values as as the difference between the net disposal proceeds and
explained in relevant accounting policies. These policies have payment shall be considered as established only upon Non-monetary items are not retranslated at period-end and the carrying amount of the asset and is recognized in the
been applied consistently for all the periods presented in the approval of the dividend by the shareholders in the Annual are measured at historical cost (translated using the exchange Statement of Profit and Loss.
financial statements. General Meeting. rates at the transaction date).
166 167
Capital Work-in-Progress To apply this definition, the contract is assessed for three key immediate sale in their present condition; are being actively Impairment allowance (expected credit loss) is recognized on
evaluations which are whether: marketed for sale at a price and the sale has been agreed or financial assets carried at amortized cost.
The cost of PPE under construction at the reporting date is
disclosed as ‘Capital work-in-progress.’ The cost comprises - the contract contains an identified asset, which is is expected to be concluded within one year of the date of
Modification of cash flows
purchase price, borrowing cost if capitalization criteria are either explicitly identified in the contract or implicitly classification. Such assets are measured at lower of carrying
amount or fair value less selling costs. When the contractual cash flows of a financial asset are
met and directly attributable cost of bringing the asset to its specified by being identified at the time the asset is
renegotiated or otherwise modified, and the renegotiation
working condition for the intended use. Any trade discount made available Assets held for sale are presented separately from other assets or modification does not result in derecognition of that
and rebates are deducted in arriving at the purchase price. in the Balance Sheet and are not depreciated or amortised
- right to obtain substantially all of the economic financial asset, the Company recalculates the gross carrying
Advances paid for the acquisition/ construction of PPE which
benefits from use of the identified asset throughout while they are classified as held for sale. amount of the financial asset and recognizes a modification
are outstanding at the balance sheet date are classified under
the period of use, considering its rights within the gain or loss in profit or loss. The gross carrying amount of the
‘Capital Advances.’ 3.10 Financial Instruments
defined scope of the contract financial asset shall be recalculated as the present value of
3.7 Intangible assets A Financial instrument is any contract that gives rise to a the renegotiated or modified contractual cash flows that are
- right to direct the use of the identified asset
financial asset of one entity and a financial liability or equity discounted at the financial asset’s original effective interest
throughout the period of use and right to direct ‘how
Recognition and initial measurement instrument of another entity. rate. Any costs or fees incurred adjust the carrying amount
and for what purpose’ the asset is used throughout
of the modified financial asset and are amortized over the
Intangible assets are initially measured at cost. Such assets the period of use. Initial recognition and measurement
remaining term of the modified financial asset.
are recognized where it is probable that the future economic
At lease commencement date, a right-of-use asset and a lease Financial assets and financial liabilities are recognized when
benefits attributable to the assets will flow to the company. Financial assets at FVTPL
liability is recognized on the balance sheet. The right-of-use the Company becomes a party to the contractual provisions
Subsequent measurement (amortization method, useful lives asset is measured at cost, which is made up of the initial of the financial instrument and are measured initially at fair Financial assets at FVTPL include financial assets that either
and residual value) measurement of the lease liability, any initial direct costs value adjusted by transactions costs, except for those carried do not meet the criteria for amortized cost classification
incurred, an estimate of any costs to dismantle and remove at fair value through profit or loss which are measured initially or are equity instruments held for trading or that meet
All intangible assets with finite useful life are amortized on
the asset at the end of the lease, and any lease payments at fair value. Subsequent measurement of financial assets and certain conditions and are designated at FVTPL upon
a straight line basis over the estimated useful lives, and a
made in advance of the lease commencement date (net of initial recognition. All derivative financial instruments also
possible impairment is assessed if there is an indication that financial liabilities is described below.
any incentives received). fall into this category, except for those designated and
the intangible asset may be impaired. Residual values and
Classification and subsequent measurement of financial assets effective as hedging instruments, for which the hedge
useful lives for all intangible assets are reviewed at each The right-of-use assets are depreciated on a straight-line
accounting requirements may apply. Assets in this category
reporting date. Changes, if any, are accounted for as changes basis from the lease commencement date to the earlier of For the purpose of subsequent measurement, financial
are measured at fair value with gains or losses recognized in
in accounting estimates. Management estimates the useful the end of the useful life of the right-of-use asset or the end assets are classified into the following categories upon initial
profit or loss. The fair values of financial assets in this category
life of intangible assets to be five years. of the lease term. The right-of-use asset is also assessed for recognition:
are determined by reference to active market transactions or
impairment when such indicators exist.
Intangible Assets under Development • Amortized cost using a valuation technique where no active market exists.
At the commencement date, the lease liability is measured
Expenditure incurred which are eligible for capitalization • Financial assets at fair value through profit or loss Embedded derivatives
at the present value of the lease payments unpaid at that
under intangible assets is carried as ‘Intangible assets under (FVTPL)
date, discounted using the interest rate implicit in the lease An embedded derivative is a component of a hybrid
development’ till they are ready for their intended use.
if that rate is readily available or the Company’s incremental • Financial assets at fair value through other instrument that also includes a non-derivative host contract
Advances paid for the acquisition/ development of intangible
borrowing rate. comprehensive income (FVOCI) with the effect that some of the cash flows of the combined
assets which are outstanding at the balance sheet date are
instrument vary in a way similar to a stand-alone derivative.
classified under ‘Capital Advances’. Lease payments included in the measurement of the • Investments in equity shares of subsidiaries and joint An embedded derivative causes some or all of the cash
lease liability are made up of fixed payments (including in ventures (carried at cost in accordance with Ind AS 27)
Derecognition of Intangible Assets flows that otherwise would be required by the contract to
substance fixed), variable payments based on an index or
An intangible asset is derecognized on disposal, or when All financial assets except for those at FVTPL or at FVOCI are be modified according to a specified interest rate, foreign
rate, amounts expected to be payable under a residual value
no future economic benefits are expected from use or subject to review for impairment at least at each reporting exchange rate, or other variable, provided that, in the case
guarantee and payments arising from options reasonably
disposal. Gains or losses arising from derecognition of an date to identify whether there is any objective evidence that of a non-financial variable, it is not specific to a party to the
certain to be exercised.
intangible asset, measured as the difference between the net contract.
a financial asset or a group of financial assets is impaired.
Subsequent to initial measurement, the liability will be
disposal proceeds and the carrying amount of the asset are Different criteria to determine impairment are applied to Derivatives embedded in all host contracts are accounted
reduced for payments made and increased for interest. It is
recognized in the Statement of Profit and Loss when the asset each category of financial assets, which are described below. for as separate derivatives and recorded at fair value if their
remeasured to reflect any reassessment or modification, or if
is derecognized. economic characteristics and risks are not closely related to
there are changes in in-substance fixed payments. Amortized cost
those of the host contracts or if the embedded derivative
3.8 Lease accounting: When the lease liability is remeasured, the corresponding feature leverages the exposure and the host contracts are not
A financial asset is measured at amortized cost using Effective
adjustment is reflected in the right-of-use asset, or profit and Interest Rate (EIR) if both of the following conditions are met: held for trading or designated at fair value though profit or
Right-of-use asset and related lease liability in connection
loss if the right-of-use asset is already reduced to zero. loss. These embedded derivatives are measured at fair value
with all former operating leases are recognised except for a) the financial asset is held within a business model
those identified as short-term or low-value lease. with changes in fair value recognised in profit or loss, unless
3.9 Assets held for sale whose objective is to hold financial assets to collect designated as effective hedging instruments.
An assessment at contract inception is made whether contractual cash flows; and
a contract is, or contains, a lease. A lease is defined as ‘a Assets are classified as Held for Sale if their carrying amount Financial assets at FVOCI
will be recovered principally through a sale transaction rather b) the contractual terms of the financial asset give
contract, or part of a contract, that conveys the right to use an FVOCI financial assets comprise of equity instruments
than through continuing use and the sale is highly probable. rise on specified dates to cash flows that are solely
asset (the underlying asset) for a period of time in exchange measured at fair value. An equity investment classified as
A sale is considered as highly probable when such assets have payments of principal and interest on the principal
for consideration’. FVOCI is initially measured at fair value plus transaction costs.
been decided to be sold by the Company; are available for amount outstanding.
Gains and losses are recognized in Other Comprehensive
168 169
Income (OCI) and reported within the FVOCI reserve within - the effect of credit risk does not dominate the value The Expected Credit Loss (ECL) is measured at 12-month 3.13 Dividend and Other Payments to holders of Instruments
equity, except for dividend income, which is recognized changes that result from that economic relationship ECL for Stage 1 loan assets and lifetime ECL for Stage 2 and classified as Equity
in profit or loss. There is no recycling of such gains and Stage 3 loan assets. ECL is the product of the Probability of
- the hedge ratio of the hedging relationship is the same Proposed dividends and interim dividends payable to the
losses from OCI to Statement of Profit & Loss, even on the Default, Exposure at Default and Loss Given Default, defined
as that resulting from the quantity of the hedged item shareholders are recognized as changes in equity in the
derecognition of the investment. However, the Company may as follows:
that the Company actually hedges and the quantity period in which they are approved by the shareholders and
transfer the same within equity.
of the hedging instrument that the Company actually Probability of Default (PD) - The PD represents the likelihood the Board of Directors respectively. Liability for the payments
De-recognition of financial assets uses to hedge that quantity of hedged item. of the borrower defaulting on its obligation either over next to the holders of instruments classified as equity are
All derivative financial instruments designated under hedge 12 months or over the remaining lifetime of the instrument. recognized in the period when such payments are authorized
De-recognition of financial assets due to a substantial
modification of terms and conditions accounting are recognised initially at fair value and reported Loss Given Default (LGD) – LGD represents the Company’s for payment by the Company.
subsequently at fair value at each reporting date. To the expectation of loss given that a default occurs. LGD is
The Company derecognizes a financial asset, such as a loan extent that the hedge is effective, changes in the fair value 3.14 Material prior period errors
expressed in percentage and it shows the proportion of the
to a customer, when the terms and conditions have been of derivatives designated as hedging instruments in cash amount that will actually be lost post recoveries in case of a
renegotiated to the extent that, substantially, it becomes a flow hedges are recognised in other comprehensive income Material prior period errors are corrected retrospectively
default. by restating the comparative amounts for the prior periods
new loan, with the difference recognized as a derecognition and included within the cash flow hedge reserve in equity.
gain or loss, to the extent that an impairment loss has not Any ineffectiveness in the hedge relationship is recognised Exposure at Default (EAD) – EAD represents the amounts, presented in which the error occurred. If the error occurred
already been recorded. immediately in profit or loss. including the principal outstanding, interest accrued and before the earliest period presented, the opening balances of
outstanding Letters of Comfort that the Company expects to assets, liabilities and equity for the earliest period presented,
De-recognition of financial assets other than due to At the time the hedged item affects profit or loss, any gain are restated.
or loss previously recognised in other comprehensive income be owed at the time of default.
substantial modification
is reclassified from equity to profit or loss and presented as Forward- looking economic information is included in 3.15 Prepaid Expenses
Financial assets (or where applicable, a part of financial asset a reclassification adjustment within other comprehensive determining the 12-month and lifetime PD, EAD and LGD.
or part of a group of similar financial assets) are derecognized income. The assumptions underlying the expected credit loss are A prepaid expense up to `1,00,000/- is recognized as expense
(i.e. removed from the Company’s balance sheet) when monitored and reviewed on an ongoing basis. upon initial recognition.
At the inception of each hedging relationship, the Company
the contractual rights to receive the cash flows from the
formally designates and documents the hedge relationship, in Financial assets other than Loans 3.16 Taxation
financial asset have expired, or when the financial asset and
accordance with the Company’s risk management objective
substantially all the risks and rewards are transferred. The In respect of its other financial assets, the Company assesses
and strategies. The documentation includes identification Tax expense recognized in profit or loss comprises the sum
Company also derecognizes the financial asset if it has both
of the hedged item, hedging instrument, the nature of if the credit risk on those financial assets has increased of deferred tax and current tax. It is recognized in Statement
transferred the financial asset and the transfer qualifies for
risk(s) being hedged, the hedge ratio and how the hedging significantly since initial recognition. If the credit risk has not of Profit and Loss, except when it relates to an item that is
derecognition.
relationship meets the hedging effectiveness requirements. increased significantly since initial recognition, the Company recognised in OCI or directly in equity, in which case, the tax
Classification and subsequent measurement of financial measures the loss allowance at an amount equal to 12-month is also recognised in OCI or directly in equity.
Fair Value Hedges
liabilities expected credit losses, else at an amount equal to the lifetime
In line with the recognition of change in the fair value of the expected credit losses. Current tax is determined as the tax payable in respect
Financial liabilities are measured subsequently at amortized of taxable income for the year, using tax rates enacted or
hedging instruments in the Statement of Profit & Loss, the
cost using the effective interest method, except for financial To make that assessment, the Company compares the risk of
change in the fair value of the hedged item attributable to substantively enacted and as applicable at the reporting date,
liabilities held for trading or designated at FVTPL, that a default occurring on the financial asset as at the balance
the risk hedged is recognised in the Statement of Profit and and any adjustments to tax payable in respect of previous
are carried subsequently at fair value with gains or losses sheet date with the risk of a default occurring on the financial
Loss. Such changes are made to the carrying amount of the years.
recognized in profit or loss. All host contracts which are in asset as at the date of initial recognition. The Company also
hedged item and are adjusted in Effective Interest Rate in the
nature of a financial liability and separated from embedded considers reasonable and supportable information, that is Deferred tax is recognized on temporary differences between
period when the hedging instrument ceases to exit. If the
derivative are measured at amortised cost using the effective the carrying amounts of assets and liabilities in the financial
hedged item is derecognised, the unamortised fair value is available without undue cost or effort that is indicative of
interest method. statements and the corresponding tax bases used in the
recognised immediately in Statement of Profit and Loss. significant increases in credit risk since initial recognition.
Derecognition of financial liabilities The Company assumes that the credit risk on a financial asset computation of taxable income. Deferred tax on temporary
3.11 Impairment of financial assets has not increased significantly since initial recognition if the differences associated with investments in subsidiaries and
A financial liability is derecognized when the obligation joint ventures is not provided if reversal of these temporary
Loan assets financial asset is determined to have low credit risk at the
under the liability is discharged or canceled or expires. When differences can be controlled by the Company and it is
an existing financial liability is replaced by another from the balance sheet date.
The Company follows a ‘three-stage’ model for impairment in probable that reversal will not occur in the foreseeable future.
same lender on substantially different terms or the terms Write-offs
the form of Expected Credit Loss (ECL) based on changes in
of an existing liability are substantially modified, such an Deferred tax assets and liabilities are calculated, without
credit quality since initial recognition as summarised below: Financial assets are written off either partially or in their
exchange or modification is treated as the derecognition of discounting, at tax rates that are expected to apply to their
the original liability and the recognition of a new liability. The • Stage 1 includes loan assets that have not had entirety only when the Company has stopped pursuing the respective period of realization, provided those rates are
difference in the respective carrying amounts is recognized in a significant increase in credit risk since initial recovery or as directed by the order of the Judicial Authority. enacted or substantively enacted by the end of the reporting
the statement of profit or loss. recognition or that have low credit risk at the period. Deferred tax assets and liabilities are offset if there is
reporting date. 3.12 Cash and cash equivalents
Hedge accounting a legally enforceable right to offset current tax liabilities and
• Stage 2 includes loan assets that have had a significant assets, and they relate to income taxes levied by the same tax
Cash and cash equivalents comprise cash on hand and
To qualify for hedge accounting, the hedging relationship increase in credit risk since initial recognition but that authority.
demand deposits, together with other short-term, highly
must meet all of the following requirements: do not have objective evidence of impairment.
liquid investments (original maturity less than three months) Deferred tax liability is recognized for all taxable temporary
- there is an economic relationship between the • Stage 3 includes loan assets that have objective that are readily convertible into known amounts of cash and
evidence of impairment at the reporting date. differences. A deferred tax asset is recognized for all
hedged item and the hedging instrument which are subject to an insignificant risk of changes in value. deductible temporary differences to the extent that it is
170 171
probable that future taxable profits will be available against at the reporting date less the fair value of plan assets. Any reimbursement that the Company can be virtually transfers have occurred between levels in the hierarchy by re-
which the deductible temporary difference can be utilized. Management estimates the DBO annually with the assistance certain to collect from a third party concerning the obligation assessing categorization (based on the lowest level input that
Deferred tax assets are reviewed at each reporting date and of independent actuaries. (such as from insurance) is recognized as a separate asset. is significant to the fair value measurement as a whole) at the
are reduced to the extent that it is no longer probable that However, this asset may not exceed the amount of the related end of each reporting period.
Actuarial gains/losses resulting from re-measurements of the provision.
the related tax benefit will be realized.
liability/asset are included in Other Comprehensive Income. 3.20 Offsetting of financial instruments
Changes in deferred tax assets or liabilities are recognized Contingent assets are not recognized. However, when the
as a component of tax income or expense in profit or loss, Other long-term employee benefits: inflow of economic benefits is probable, the related asset is Financial assets and financial liabilities are offset and the net
disclosed. amount is reported in the balance sheet if there is a currently
except where they relate to items that are recognized in
Liability in respect of compensated absences becoming enforceable legal right to offset the recognised amounts and
other comprehensive income or directly in equity, in which
due or expected to be availed more than one-year after the 3.19 Fair value measurement there is an intention to settle on a net basis, to realise the
case the related deferred tax is also recognized in other
balance sheet date is estimated on the basis of actuarial assets and settle the liabilities simultaneously.
comprehensive income or equity, respectively. The Company measures financial instruments, such as
valuation performed by an independent actuary using the
derivatives at fair value at each reporting date. 3.21 Business Combination under Common Control
3.17 Employee benefits projected unit credit method.
Fair value is the price that would be received to sell an A business combination, if any, involving entities or businesses
Actuarial gains and losses arising from past experience and
Short-term employee benefits asset or paid to transfer a liability in an orderly transaction under common control is a business combination in which
changes in actuarial assumptions are charged to statement of
between market participants at the measurement date. The all of the combining entities or businesses are ultimately
Short-term employee benefits including salaries, short term profit and loss in the period in which such gains or losses are
fair value measurement is based on the presumption that the controlled by the same party or parties both before and after
compensated absences (such as a paid annual leave) where determined. transaction to sell the asset or transfer the liability takes place the business combination and that control is not transitory.
the absences are expected to occur within twelve months Loan to employees at concessional rate either:
after the end of the period in which the employees render Business combinations involving entities or businesses under
Loans given to employees at concessional rate are initially • In the principal market for the asset or liability, or common control are accounted for using the pooling of
the related service, profit sharing and bonuses payable
within twelve months after the end of the period in which recognized at fair value and subsequently measured at • In the absence of a principal market, in the most interest method as follows:
the employees render the related services and non-monetary amortised cost. The difference between the initial fair value advantageous market for the asset or liability • The assets and liabilities of the combining entities are
benefits for current employees are estimated and measured of such loans and transaction value is recognised as deferred
The principal or the most advantageous market must be reflected at their carrying amounts.
on an undiscounted basis. employee benefits, which is amortised on a straight-line
basis over the expected remaining period of the Loan. In accessible by the Company. • No adjustments are made to reflect fair values, or
Post-employment benefit plans are classified into defined case of change in expected remaining period of the Loan, The fair value of an asset or a liability is measured using recognize new assets or liabilities. Adjustments are
benefits plans and defined contribution plans as under: the unamortised deferred employee benefits on the date of the assumptions that market participants would use when made only to harmonise significant accounting
change is amortised over the updated expected remaining pricing the asset or liability, including assumptions about risk, policies.
Defined contribution plan period of the loan on a prospective basis. assuming that market participants act in their economic best • The financial information in the financial statements
A defined contribution plan is a plan under which the interest. A fair value measurement of a non-financial asset in respect of prior periods is restated as if the business
3.18 Provisions, Contingent Liabilities, and Contingent Assets takes into account a market participant’s ability to generate
Company pays fixed contributions in respect of the combination has occurred from the beginning of
economic benefits by using the asset in its highest and best the preceding period in the financial statements,
employees into a separate fund. The Company has no legal Provisions are recognized when the Company has a present use or by selling it to another market participant that would irrespective of the actual date of the combination.
or constructive obligations to pay further contributions after legal or constructive obligation as a result of a past event; use the asset in its highest and best use.
its payment of the fixed contribution. The contributions it is probable that an outflow of economic resources The balance of the retained earnings appearing in the
made by the Company towards defined contribution plans will be required from the Company and amounts can be The Company uses valuation techniques that are appropriate financial statements of the transferor is aggregated with the
are charged to the profit or loss in the period to which the estimated reliably. Timing or amount of the outflow may in the circumstances and for which sufficient data are corresponding balance appearing in the financial statements
contributions relate. available to measure fair value, maximizing the use of relevant of the transferee. The identity of the reserves is preserved
still be uncertain. Provisions are measured at the estimated
observable inputs and minimizing the use of unobservable and the reserves of the transferor become the reserves of the
Defined benefit plan expenditure required to settle the present obligation, based
inputs. transferee.
on the most reliable evidence available at the reporting date,
The Company has an obligation towards gratuity, Post including the risks and uncertainties associated with the All assets and liabilities for which fair value is measured The difference, if any, between the amounts recorded as share
Retirement Medical Facility (PRMF) and Other Defined present obligation. Provisions are discounted to their present or disclosed in the financial statements are categorized capital issued plus any additional consideration in the form of
Retirement Benefit (ODRB) which are being considered as values, where the time value of money is material. within the fair value hierarchy, described as follows, based cash or other assets and the amount of share capital of the
defined benefit plans covering eligible employees. Under on the lowest level input that is significant to the fair value
A contingent liability is disclosed for: transferor is transferred to capital reserve and is presented
the defined benefit plans, the amount that an employee measurement as a whole: separately from other capital reserves.
will receive on retirement is defined by reference to the • Possible obligations which will be confirmed only • Level 1 - Quoted (unadjusted) market prices in active
employee’s length of service, final salary, and other defined by future events not wholly within the control of the 3.22 Expenditure on issue of shares
markets for identical assets or liabilities
parameters. The legal obligation for any benefits remains Company or
with the Company, even if plan assets for funding the defined • Level 2 - Valuation techniques for which the lowest Expenditure on issue of shares, if any, is charged to the
benefit plan have been set aside. • Present obligations arising from past events where it level input that is significant to the fair value securities premium account.
is not probable that an outflow of resources will be measurement is directly or indirectly observable
The Company’s obligation towards defined benefit plans required to settle the obligation or a reliable estimate 4. Implementation of New/ Modified Standards
is determined using the projected unit credit method, with • Level 3 - Valuation techniques for which the lowest
of the amount of the obligation cannot be made. During the year, the Ministry of Corporate Affairs (MCA) has
actuarial valuations being carried out at the end of each level input that is significant to the fair value
In those cases, where the outflow of economic resources as measurement is unobservable issued amendments to certain Ind-AS. The Company has
annual reporting period. The liability recognized in the
a result of present obligations is considered improbable or analysed the impact of these amendments which is not
statement of financial position for defined benefit plans is For assets and liabilities that are recognized in the financial
remote, no liability is recognized or disclosure is made. material to the Company. Further, MCA has not issued any
the present value of the Defined Benefit Obligation (DBO) statements regularly, the Company determines whether new Ind-AS applicable to the company.
172 173
5. Significant management judgment in applying relate to technical and economic obsolescence that may Notes to Accounts
accounting policies and estimation of uncertainty change the utility of assets.
6 Cash and Cash Equivalents
The preparation of the Company’s financial statements Defined benefit obligation (DBO) – Management’s estimate (₹ in Crores)
requires management to make judgments, estimates, and of the DBO is based on a number of underlying assumptions Particulars As at 31.03.2023 As at 31.03.2022
assumptions that affect the reported amounts of revenues, such as standard rates of inflation, mortality, discount rate
Cash on Hand (including imprest) - 0.02
expenses, assets and liabilities, and the related disclosures. and anticipation of future salary increases. Variation in these
Balances with Banks
The estimates and underlying assumptions are based assumptions may significantly impact the DBO amount and
the annual defined benefit expenses. in current accounts 31.31 124.01
on historical experience & other relevant factors and are
deposits with original maturity of 3 months or less 7.69 2.37
reviewed on an ongoing basis. Actual results may differ from Fair value measurements – Management applies valuation
these estimates. Total 39.00 126.40
techniques to determine the fair value of financial instruments
Changes in accounting estimates- Such changes, if any, are (where active market quotes are not available). This involves 7 Bank Balances (other than Cash and Cash Equivalents)
recognised in the period in which the estimate is revised if developing estimates and assumptions consistent with how (₹ in Crores)
the revision affects only that period or in the period of the market participants would price the instrument. In estimating
revision & future periods if it affects both current & future the fair value of an asset or a liability, the Company uses
market-observable data to the extent it is available. In case of Earmarked Balances with Banks
periods.
non-availability of market-observable data, Level 2 & Level 3 For unpaid dividends 6.79 6.39
Significant management judgments hierarchy is used for fair valuation. For govt. funds for onward disbursement as grant 24.22 771.18
Recognition of deferred tax assets/ liability – The extent Income Taxes – Significant estimates are involved in Earmarked Term Deposits
to which deferred tax assets can be recognized is based determining the provision for income taxes, including Deposits in Compliance of Court Order 0.62 0.59
on an assessment of the probability of the future taxable amount expected to be paid/recovered for uncertain tax
income against which the deferred tax assets can be utilized. Term Deposit held as Margin Money against Bank Guarantee - 0.27
positions and also in respect of expected future profitability
Further, the Company Management has no intention to make Term Deposit- Debenture Redemption Reserves 196.35 225.33
to assess deferred tax asset.
withdrawal from the Special Reserve created and maintained Balances with banks not available for use pending allotment of 54EC Capital Gain 1,720.36 1,291.54
under section 36(1)(viii) of the Income tax Act, 1961 and thus, Expected Credit Loss (‘ECL’) – The measurement of an Tax Exemption Bonds
the special reserve created and maintained is not capable expected credit loss allowance for financial assets measured Total 1,948.34 2,295.30
of being reversed. Hence, the company does not create any at amortized cost requires the use of complex models and
significant assumptions about future economic conditions Term Deposits held as margin money against Bank Guarantee for more than 12 months - 0.27
deferred tax liability on the said reserve.
and credit behavior (e.g., likelihood of customers defaulting 7.1 There are no repatriation restrictions with respect to Cash & Cash Equivalents and Bank balances (other than Cash & Cash Equivalents)
Evaluation of indicators for impairment of assets – The and resulting losses). The Company makes significant as at 31st March 2023 (Previous year Nil).
evaluation of the applicability of indicators of impairment of judgments about the following while assessing expected
assets requires assessment of several external and internal credit loss to estimate ECL: 8 Derivative Financial Instruments
factors which could result in deterioration of recoverable
amount of the assets. • Determining criteria for a significant increase in The Company enters into derivatives for hedging foreign exchange risks and interest rate risks. Derivatives held for risk management
credit risk; purposes include hedges that are either designated as effective hedges under the hedge accounting requirements or hedges that are
Non recognition of Interest Income on Credit Impaired economic hedges. The table below shows the fair values of derivative financial instruments recorded as assets or liabilities together
Loans - Interest income on credit-impaired loan assets is • Establishing the number and relative weightings of with their notional amounts.
not being recognised as a matter of prudence, pending the forward-looking scenarios for each type of product/
market and the associated ECL; and Refer Note 47 for Risk Management Disclosures in respect of the derivatives.
outcome of resolutions of stressed assets.
• Establishing groups of similar financial assets to Part I
Significant estimates (₹ in Crores)
measure ECL.
Useful lives of depreciable/amortizable assets – Management Particulars As at 31.03.2023 As at 31.03.2022
reviews its estimate of the useful lives of depreciable/ • Estimating the probability of default and loss given
Notional Fair Value - Fair Value - Notional Fair Value - Fair Value -
amortizable assets at each reporting date, based on the default (estimates of recoverable amounts in case of
Amounts Assets Liabilities Amounts Assets Liabilities
expected utility of the assets. Uncertainties in these estimates default)
(i) Currency Derivatives
- Currency swaps 3,083.13 47.50 58.13 2,850.13 1.39 48.37
- Others
- Call Spread 2,055.42 208.14 - 1,895.18 76.73 -
- Seagull Options 80,362.47 8,007.42 87.89 54,727.54 4,868.28 -
Sub-total (i) 85,501.02 8,263.06 146.02 59,472.85 4,946.40 48.37
(ii) Interest Rate Derivatives
- Forward Rate Agreements and 46,278.27 718.55 300.82 33,239.41 563.77 173.52
Interest Rate Swaps
Sub-total (ii) 46,278.27 718.55 300.82 33,239.41 563.77 173.52
(iii) Other derivatives
- Reverse cross currency swaps 4,947.00 - 530.11 4,747.00 - 331.25
Total - Derivative Financial 136,726.29 8,981.61 976.95 97,459.26 5,510.17 553.14
Instruments (i+ii+iii)
174 175
Part II 9.1 Reconciliation between the figures reported under Ind-AS and contractual amounts outstanding in respect of Loans:
Included in Part I are derivatives held for hedging and risk management purposes as below: (₹ in Crores)
(₹ in Crores) Particulars As at 31.03.2023 As at 31.03.2022
Particulars As at 31.03.2023 As at 31.03.2022 Net Loans 422,083.91 371,930.54
Notional Fair Value Fair Value Notional Fair Value Fair Value
Amounts - Assets - Liabilities Amounts - Assets - Liabilities Less: Interest accrued and due on Loans classified under the same head as per Ind- (60.23) (423.59)
(i) Fair Value Hedging AS
- Interest Rate Derivatives Less: Interest accrued and not due on Loans classified under the same head as per (1,436.81) (957.96)
- Forward Rate Agreements and Interest Rate 15,950.70 10.32 289.34 11,850.70 19.76 112.00 Ind-AS
Swaps Add: Allowance for Expected Credit Loss netted off as per Ind-AS 14,263.75 14,704.66
Sub-total (i) 15,950.70 10.32 289.34 11,850.70 19.76 112.00
(ii) Cash Flow Hedging
Add: Ind-AS Adjustments in respect of fees based income at Effective Interest Rate 161.17 117.61
(EIR)
- Currency Derivatives
- Currency Swaps 3,083.13 38.85 - 2,842.77 - 48.37 Gross Loans 435,011.79 385,371.26
- Others 9.2 Movement of Impairment Loss Allowance in respect of Loans:
- Call Spread 2,055.42 208.14 - 1,895.18 76.73 -
- Seagull Options 80,362.47 7,979.02 85.76 54,727.54 4,868.28 - (₹ in Crores)
- Interest Rate Derivatives Particulars Year ended Year ended
- Forward Rate Agreements and Interest Rate 23,627.57 337.69 11.48 13,313.21 115.10 45.27 31.03.2023 31.03.2022
Swaps Opening Balance 14,704.66 13,206.11
Sub-total (ii) 109,128.59 8,563.70 97.24 72,778.70 5,060.11 93.64
(iii) Undesignated Derivatives 11,647.00 407.59 590.37 12,829.86 430.30 347.50 Add: Impairment loss allowance provided during the year (Refer Note 35)* 110.17 3,422.56
Total - Derivative Financial Instruments 136,726.29 8,981.61 976.95 97,459.26 5,510.17 553.14 Less: Allowance utilised towards write-off of loans (551.08) (1,924.01)
(i+ii+iii) Closing Balance 14,263.75 14,704.66
Derivative financial instruments are measured at fair value at each reporting date. The changes in the fair value of derivatives designated * Impairment loss allowance during FY 2021-22 includes enhancement of allowance to a minimum level of 0.40% on stage 1&2 loan assets amounting to
as hedging instruments in effective cash flow hedges are recognised in Other Comprehensive Income. In case of fair value hedges, the ₹838.06 crores and additional allowance created to align with lead lender alongwith management overlays amounting to ₹1,408.74 crores.
changes in fair value of the derivatives designated as hedging instruments along with the fair value changes in the carrying amount
of the hedged items are recognised in the Statment of Profit & Loss. For undesignated derivatives, the changes in the fair value are 9.3 In terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ Restructuring, the
recognised in the Statement of Profit & Loss. Company has written off loans amounting to ₹551.08 crores (Previous year ₹1,924.01 crores). The details of write-offs for the current
year are as below:
9 Loans
The Company has categorised all loans at Amortised Cost in accordance with the requirements of Ind AS 109. (i) During the current year
(₹ in Crores) (a) Pursuant to the Resolution Plan approved under IBC proceedings executed on 5th September 2022 in respect of Jhabua Power
Particulars As at 31.03.2023 As at 31.03.2022 Limited, the Company has written off an amount of ₹10.41 crores after appropriating recoveries of ₹310.63 crores (Cash
Principal O/s Amortised Cost Principal O/s Amortised Cost ₹77.41 crore, Non-Convertible Debentures of ₹51.48 crore and Equity of ₹181.74 crore).
(A) Loans (b) Pursuant to the Resolution Plan approved under IBC proceedings executed on 16th September 2022 in respect of South East
(i) Term Loans 408,463.40 409,638.42 383,310.40 384,566.08 U.P. Power Transmission Company Limited, the company has recovered the entire outstanding loan of ₹922.09 crores and
(ii) Working Capital Term Loans 26,548.39 26,709.24 2,060.86 2,069.12 ₹132.91 crores overdue interest after appropriating cash recoveries of ₹1,055.00 crores.
Total (A) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20 (c) Pursuant to the liquidation order passed under IBC proceedings executed on 27th December 2022 in respect of Ind Barath
Less: Impairment loss allowance (14,263.75) (14,263.75) (14,704.66) (14,704.66) Energy (Utkal) Limited, the Company has written off an amount of ₹536.16 crores after appropriating equity & cash recoveries
Total (A) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54 totalling to ₹240.84 crores.
(B) Security Details (d) Pursuant to the One Time Settlement executed on 2nd December 2022 in respect of ATN International Limited, the Company
(i) Secured by tangible assets 242,310.94 242,633.17 223,793.64 224,420.98 has written off an amount of ₹3.45 crores after appropriating total recoveries of ₹6.00 crores, of which ₹4.15 crores to be
(ii) Covered by Govt. Guarantees 172,069.58 173,004.21 130,973.50 131,510.35 received in FY 2023-24.
(iii) Unsecured 20,631.27 20,710.28 30,604.12 30,703.87
Total (B) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20 (e) Pursuant to the One Time Settlement executed on 2nd December 2022 in respect of Silicon Valley infotech Limited, the
Company has written off an amount of ₹1.06 crore after appropriating total recoveries of ₹1.85 crores, of which ₹1.35 crores to
Less: Impairment loss allowance (14,263.75) (14,263.75) (14,704.66) (14,704.66)
be received in FY 2023-24.
Total (B) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54
(C) (I) Loans in India (ii) During the previous year
(i) Public Sector 393,225.23 394,571.78 350,455.72 351,732.04 (a) Pursuant to the Resolution Plan approved under IBC proceedings executed on 13th May 2021 in respect of VS Lignite Power
(ii) Private Sector 41,786.56 41,775.88 34,915.54 34,903.16 Private Limited, the Company has written off an amount of ₹39.45 crores after appropriating the recoveries of ₹14.79 crores
Total (C)(I) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20 (Cash ₹1.30 crores and Term Loan of ₹13.49 crores).
(b) Pursuant to the liquidation order under IBC proceedings executed on 30th December 2021 in respect of Lanco Babandh Power
Total (C)(I) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54
Limited, the Company has written off an amount of ₹1160.16 crores after appropriating cash recoveries of ₹40.39 crores.
(C)(II) Loans outside India - - - -
Less: Impairment loss allowance - - - (c) Pursuant to the Resolution Plan approved under IBC proceedings executed on 16th March 2022 in respect of Essar Power (MP)
Total (C)(II) - Net Loans - - - - Limited (EPMPL), the Company has written off an amount of ₹724.40 crores after appropriating the recoveries of ₹620.60 crores
Total (C)(I) and (C)(II) 420,748.04 422,083.91 370,666.60 371,930.54 (Cash ₹148.94 crores and Term Loan of ₹471.66 crores).
176 177
(₹ in Crores)
(d) Pursuant to the Resolution Plan approved under IBC proceedings executed on 23rd March 2022 in respect of Amrit Jal Ventures
Private Limited, the company has recovered the entire outstanding loan of ₹4.35 crores and ₹0.28 crores overdue interest after Particulars At fair value
appropriating cash recoveries of ₹4.63 crores. Amortised Through Through Designated Others
Other Com- profit or at fair value Sub-total Total
9.4 The Company obtains balance confirmation from the borrowers for the balances standing as on the Balance Sheet date. The summary Cost (At Cost)
prehensive loss through profit
of the balance confirmations received from the borrowers is as under:
Income or loss
(₹ in Crores)
(1) (2) (3) (4) (5= 1+2+3+4) (6) (7=5+6)
Particulars As at 31.03.2023 As at 31.03.2022 Investments outside India - - - - - - -
% Amount % Amount Investments in India 1,736.26 268.26 182.07 - 2,186.59 0.10 2,186.69
Gross Loan Book 435,011.79 385,371.26 Total - Gross (B) 1,736.26 268.26 182.07 - 2,186.59 0.10 2,186.69
Loan Assets for which balance confirmations have been 93% 406,179.64 93% 356,923.45 Total Investments 1,736.26 268.26 182.07 - 2,186.59 0.10 2,186.69
received from borrowers Less: impairment loss (28.72) - - - (28.72) - (28.72)
Loan Assets for which balance confirmations are yet to be 7% 28,832.15 7% 28,447.81 allowance (C)
received from borrowers Total - Net (D=A-C) 1,707.54 268.26 182.07 - 2,157.87 0.10 2,157.97
of which,
10.1 Details of investments
Loans secured by tangible assets 54% 15,630.88 45% 12,813.68 (₹ in Crores)
Loans covered by Government Guarantee/ Loans to 25% 7,065.14 33% 9,295.96 Particulars Investment measured at As at 31.03.203 As at 31.03.2022
Government
Number Amount Number Amount
Unsecured loans 21% 6,136.12 22% 6,338.17
(A) Total - Central/ State Government Securities Amortised Cost 137,932,800 1,431.74 133,932,800 1,374.51
9.5 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of (HQLAs)*
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, Debt Securities
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (i) Corporate Bonds (HQLAs)* 629.04 226.82
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
- 9.95% Uttar Pardesh Power Corporation Amortised Cost 3,000 300.00 - -
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
Limited (UPPCL) 2032
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
- 8% Bonds of Mahanagar Telephone Nigam Amortised Cost 1,000 102.97 - -
10 Investments Limited (MTNL) 2032
(₹ in Crores)
- 7.05% Bonds of Mahanagar Telephone Nigam Amortised Cost 850 88.12 850 88.15
Particulars At fair value Limited
Amortised Through Through Designated Others - 6.65% Bonds of Food Corporation of India Amortised Cost 200 20.61 200 20.61
Other Com- profit or at fair value Sub-total Total
Cost (At Cost) - 7.19% Bonds of THDC India Limited Amortised Cost 250 26.31 250 26.32
prehensive loss through profit
- 8.69% Bonds of Damodar Valley Corporation Amortised Cost 200 21.35 200 21.62
Income or loss
(1) (2) (3) (4) (5= 1+2+3+4) (6) (7=5+6) - 7.30% Bonds of Power Grid Corporation of Amortised Cost 200 22.22 200 22.44
India Limited
As at 31st March, 2023
- 5.78% Bonds of Chennai Petroleum Amortised Cost 150 15.62 150 15.63
Govt. Securities 1,431.74 - - - 1,431.74 - 1,431.74
Corporation Limited
Debt Securities 734.78 - 562.34 - 1,297.12 - 1,297.12
- 6.11% Bonds of Bharat Petroleum Corporation Amortised Cost 100 10.49 100 10.51
Equity Instruments - 381.71 27.31 409.02 0.10 409.12
Limited
Preference Shares 28.72 - - - 28.72 - 28.72
- 7.30% Bonds of NMDC Steel Limited Amortised Cost 200 21.35 200 21.54
Others - - - - - -
(ii) Debt Securities (other than HQLAs)
Total - Gross (A) 2,195.24 381.71 589.65 - 3,166.60 0.10 3,166.70
- 7.99% Perpetual Bonds of Canara Bank Fair value through profit or loss 200 208.47 - -
Investments outside India - - - - - - -
- 9.50% Perpetual Bonds of UCO Bank Fair value through profit or loss 228 228.79 - -
Investments in India 2,195.24 381.71 589.65 - 3,166.60 0.10 3,166.70
Total - Gross (B) 2,195.24 381.71 589.65 - 3,166.60 0.10 3,166.70 - 3% Optionally convertible debentures- Series Fair value through profit or loss 165,403,256 86.85 178,543,530 92.03
A of Essar Power Transmission Co. Ltd.
Total Investments 2,195.24 381.71 589.65 - 3,166.60 0.10 3,166.70
- 3% Optionally convertible debentures- Series Fair value through profit or loss 72,821,001 38.23 78,606,161 40.52
Less: impairment loss (28.72) - - - (28.72) - (28.72)
B of Essar Power Transmission Co. Ltd.
allowance (C)
- Optionally convertible debentures- Series C of Fair value through profit or loss 18,635,162 - 18,635,162 -
Total - Net (D=A-C) 2,166.52 381.71 589.65 - 3,137.88 0.10 3,137.98
Essar Power Transmission Co. Ltd. **
As at 31st March, 2022
- 0% Non- Convertible Debentures (NCDs) of Amortised Cost 25,519,173 56.40 25,495,144 106.21
Govt. Securities 1,374.51 - - - 1,374.51 - 1,374.51
Ferro Alloys Corporation Limited
Debt Securities 333.03 - 132.55 - 465.58 - 465.58
- 8.50% Non- Convertible Debentures (NCDs) of Amortised Cost 4,933,536 49.34 - -
Equity Instruments - 268.26 49.52 317.78 0.10 317.88 Jhabua Power Limited
- 0.01% Optionally convertible Debentures Fair value through profit or - 213,803,170 -
Others - - - - - - - (OCD) Series A of R.K.M PowerGen Private Ltd. loss 213,803,170
Total - Gross (A) 1,736.26 268.26 182.07 - 2,186.59 0.10 2,186.69 **
178 179
(₹ in Crores)
10.3 Movement of Impairment Loss Allowance in respect of Investments:
Particulars Investment measured at As at 31.03.203 As at 31.03.2022 (₹ in Crores)
Particulars Year ended 31.03.2023 Year ended 31.03.2022
- 0.01% Optionally convertible Debentures Fair value through profit or 6,303,032 - 6,303,032 -
(OCD) Series B of R.K.M PowerGen Private Ltd. ** loss Opening Balance 28.72 -
- 0.01% Optionally convertible Debentures Fair value through profit or 10,474,150 - 10,474,150 - Add: Impairment loss allowance provided in respect to Redeemable Preference - 28.72
(OCD) Series Ai of R.K.M PowerGen Private Ltd. loss Shares of Rattan India Power Limited (Refer Note 35)
** Less: Allowance utilised towards write-off of loans - -
(B) Total - Debt Securities (i+ii) 1,297.12 465.58 Closing Balance 28.72 28.72
Equity Instruments
10.4 In terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ Restructuring , the
(i) Subsidiary (Refer note 10.2)
Company has received the following Investments:
-RECPowerDevelopmentandConsultancyLimited Others (At Cost) 85,500 0.10 85,500 0.10
(formerly REC Power Distribution Company (i) During the current year:
Limited) (a) Pursuant to the Resolution Plan approved under IBC proceedings in respect of Jhabua Power Limited, the company has
Total - Subsidiary 0.10 0.10 been allotted 2,78,85,211 no. of equity shares having face value of ₹10/- each and 51,48,038 no. of 8.50% Non-Convertible
(ii) Others Debentures having face value of ₹100/- each.
- NHPC Ltd. Fair value through other 16,351,580 65.73 18,843,184 52.38 (b) Pursuant to the liquidation order passed under IBC proceedings in respect of Ind Barath Energy (Utkal) Limited, the company
comprehensive income has been allotted 127 no. of equity shares having face value of ₹10/- each
- HUDCO Ltd. Fair value through other 347,429 1.50 347,429 1.14
(ii) During the previous year:
comprehensive income
- Energy Efficiency Services Ltd. Fair value through other 140.43 218,100,000 214.74 Company has not received any instruments in terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One
comprehensive income 218,100,000 Time Settlement (OTS)/ Restructuring.
- Universal Commodity Exchange Ltd. Fair value through other 16,000,000 - 16,000,000 - Refer note 9.3 for further details.
10.5 The Company has elected an irrevocable option to designate some of the equity instruments at FVOCI (Fair Value through Other
- Jhabua Power Limited Fair value through other 27,885,211 173.42 - - Comprehensive Income). The Company’s operation comprise of only one business segment i.e. providing financial assistance to
comprehensive income power, logistic and infrastructure sector. Thus, in order to isolate Standalone Statement of Profit & Loss from price fluctuations of these
- Ind Barath Energy (Utkal) Limited Fair value through other 127 0.63 - - instruments, management believes that this provides a more meaningful presentation, rather than classifying them at FVTPL (Fair
comprehensive income Value through Profit & Loss).
- Rattan India Power Ltd. Fair value through profit or loss 92,568,105 27.31 92,568,105 49.52
Details of FVOCI investments derecognised during the year
- R.K.M PowerGen Private Ltd. Fair value through profit or loss 181,790,667 - 181,790,667 - (₹ in Crores)
Total - Others 409.02 317.78
Name of the company FY 2022-23 FY 2021-22
(C) Total - Equity Instruments (i+ii) 409.12 317.88
No. of shares Fair Value Cumulative No. of shares Fair Value Cumulative
Preference Shares derecognised as on de- Gain/ (loss) on derecognised as on de- Gain/ (loss) on
- Redeemable, issued by Rattan India Power Ltd. Amortised cost 28,720,978 28.72 28,720,978 28.72 recognition de-recognition recognition de-recognition
- Optionally Convertible, issued by Rattan India Fair value through profit or loss 43,303,616 - 43,303,616 - NHPC Limited* 2,491,604 10.13 4.70 156,459,022 430.62 89.86
Power Ltd.
Small is Beautiful** 6,152,200 0.55 (5.60)
(D) Total - Preference Shares 28.72 28.72
* During the FY 22-23, the Company has sold 24,91,604 equity shares of NHPC Limited (previous year 15,64,59,022 numbers) considering the market scenerio
(E) Total - Others - - for a consideration of ₹ 10.13 crores through stock exchange. The shares have thus been derecognised and the cumulative gain (net of tax) on such sale has
Total Investments (F= A to E) 3,166.70 2,186.69 been transferred from other comprehensive income to retained earnings.
Less: impairment loss allowance (G) (28.72) (28.72) ** During the FY 21-22, the Company has derecogniesd 61,52,200 units of ‘Small is Beautiful’ Venure Capital Fund, consequent to full and final settlement upon
liquidation of the fund. As a result, the Company has written off an amount of ₹ 5.60 crores after appropriating cash recoveries of ₹ 0.55 crores
Total - Net (H=F-G) 3,137.98 2,157.97
Refer note 51.1 for valuation technique of the investments shown at fair value 11 Other financial assets
* High Quality Liquid Assets (HQLAs) maintained as per RBI Circular dated Novemeber 4, 2019
** Received against unsustainable portion of debt in terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ The Company has categorised all the components under ‘Other Financial Assets’ at Amortised Cost in accordance with the requirements
Restructuring of Ind AS 109.
(₹ in Crores)
10.2 Details of Investment in Subsidiary
Name of the company Principal place of business Proportion of ownership interest as at (A) Loans to Employees (Refer Note 11.1) 44.56 41.95
/ Country of Incorporation 31.03.2023 31.03.2022 (B) Advances to Employees 0.49 0.24
Subsidiary : (C) Loans & Advances to Holding/ Subsidiary 10.24 5.26
REC Power Development and Consultancy Limited India 100.00% 100.00% (D) Security Deposits 1.03 1.64
(formerly REC Power Distribution Company Limited) (E) Recoverable from Govt. of India
The investments in subsidiary are measured at cost in accordance with the provisions of Ind AS 27 ‘Separate Financial Statements’.
- Towards GoI Fully Serviced Bonds (Refer Note 20.5) 24,318.29 24,318.29
180 181
Particulars As at 31.03.2023 As at 31.03.2022 13.1 Significant components of net deferred tax assets and liabilities for the year ended 31st March 2023 are as follows
(₹ in Crores)
(F) Other amounts recoverable 120.39 120.24
Less: Impairment Loss allowance (Refer Note 11.2) (94.72) (90.68) Particulars Opening Recognised in Recognised Others Closing
balance Profit or Loss in OCI balance
Other Amounts Recoverable (Net) 25.67 29.56
Deferred Tax Assets
Total (A to F) 24,400.28 24,396.94
Expected Credit Loss 3,457.90 (111.44) 3,346.46
11.1 Details of Loans to Employees (Considered Good)
Provision for Earned Leave 6.34 0.58 6.92
The Company has extended loans to employees with specified terms and repayment schedule, categorised at Amortised Cost in Provision for Medical Leave 5.41 (0.22) 5.19
accordance with the requirements of Ind AS 109.
(₹ in Crores) Fair Valuation of Investments 8.41 6.40 (0.32) 14.49
Particulars As at 31.03.2023 As at 31.03.2022 Fair Valuation of Derivatives 65.07 75.98 305.41 446.46
Total Deferred Tax Assets 3,543.13 (28.70) 305.09 - 3,819.52
(A) Secured Loans
Deferred Tax Liabilities
- To Key Managerial Personnel 0.12 0.10
Depreciation and Amortisation 12.93 14.00 26.93
- To employees Other than Key Managerial Personnel 28.28 25.22
Unamortised Foreign Currency 151.05 67.25 218.30
Sub-total (A) 28.40 25.32 Exchange Fluctuations
(B) Unsecured Loans Financial assets and liabilities 216.24 15.87 232.11
- To Key Managerial Personnel 0.10 0.08 measured at amortised cost
- To Others 16.06 16.55 Fair valuaton of Debt Securities 28.17 37.02 65.19
Sub-total (B) 16.16 16.63 Total Deferred Tax Liabilities 408.39 134.14 - - 542.53
Total (A+B) 44.56 41.95 Total Deferred Tax Assets (Net) 3,134.74 (162.84) 305.09 - 3,276.99
The figures above include interest accrued on such loans amounting to ₹ 9.27 crores (Previous year ₹ 8.45 crores). Significant components of net deferred tax assets and liabilities for the year ended 31st March 2022 are as follows
11.2 Movement of impairment loss allowance on other amounts recoverable (₹ in Crores)
(₹ in Crores) Particulars Opening Recognised in Recognised Others Closing

Deferred Tax Assets
Opening balance 90.68 88.04
Expected Credit Loss 2,743.25 714.65 3,457.90
Add: Created during the year 9.77 10.23
Provision for Earned Leave 4.53 1.81 6.34
Less: Reversed/ Adjusted during the year (5.73) (7.59)
Provision for Medical Leave 5.26 0.15 5.41
Closing balance 94.72 90.68
Fair Valuation of Investments 3.57 2.29 2.55 8.41
12 Current tax assets (net) Fair Valuation of Derivatives 27.81 11.16 26.09 65.07
(₹ in Crores) Total Deferred Tax Assets 2,784.42 730.06 28.64 - 3,543.13
Particulars As at 31.03.2023 As at 31.03.2022 Deferred Tax Liabilities
Advance Income-tax & TDS 2,946.71 3,284.80 Depreciation and Amortisation 2.12 10.81 12.93
Provision for Income Tax (2,655.88) (3,110.11) Unamortised Foreign Currency 153.26 (2.21) 151.05
Sub-Total 290.83 174.69 Exchange Fluctuations
Tax Deposited on income tax demands under contest 5.20 5.20 Financial assets and liabilities 191.33 24.90 216.24
measured at amortised cost
Provision for income tax for demand under contest (0.25) (0.25)
Fair valuaton of Debt Securities - 28.17 28.17
Sub-Total 4.95 4.95
Total Deferred Tax Liabilities 346.71 61.67 - - 408.39
Current tax assets (Net) 295.78 179.64
Total Deferred Tax Assets (Net) 2,437.71 668.39 28.64 - 3,134.74
13 Deferred tax assets (net)
(₹ in Crores)
Deferred Tax Assets (Net) 3,276.99 3,134.74
182 183
14 Property, Plant & Equipment and Intangible Assets
(₹ in Crores)
(₹ in Crores)
Particulars Property, Plant & Equipment Capital Work-in- Intangible Other
Progress Assets under Intangible
Development Assets
Freehold Land Right-of-Use Buildings Plant & Furniture & EDP Equipments Office Vehicles Total Immovable Computer Computer
Land equipment Fixtures Equipments Property Software Software
Gross carrying value
As at 31.03.2021 110.39 1.59 130.40 - 20.55 21.68 17.10 0.40 302.11 335.67 0.77 13.64
Additions - - 303.73 19.90 47.55 3.30 7.14 - 381.62 32.35 - 1.02
Borrowings Cost Capitalised 5.10
Disposals - - 3.30 - 0.69 0.92 0.86 - 5.77 367.05 0.77 -
As at 31.03.2022 110.39 1.59 430.83 19.90 67.41 24.06 23.38 0.40 677.96 6.07 - 14.66
As at 31.03.2022 110.39 1.59 430.83 19.90 67.41 24.06 23.38 0.40 677.96 6.07 - 14.66
Additions - - 26.07 0.20 3.63 5.45 7.76 0.14 43.25 22.69 - 0.01
Borrowings Cost Capitalised - 0.03
Disposals/ Adjustments - - - 0.04 3.69 5.53 6.35 - 15.61 26.07 - -
As at 31.03.2023 110.39 1.59 456.90 20.06 67.35 23.98 24.79 0.54 705.60 2.72 - 14.67
Accumulated depreciation/ amortisation
As at 31.03.2021 - 0.35 9.81 - 7.40 14.47 9.62 0.34 41.99 - - 7.54
Charge for the year - 0.02 4.96 0.95 3.65 3.05 2.43 0.03 15.09 - - 2.87
Adjustment for disposals - - 1.26 - 0.41 0.71 0.41 - 2.79 - - -
As at 31.03.2022 - 0.37 13.51 0.95 10.64 16.81 11.64 0.37 54.29 - - 10.41
As at 31.03.2022 - 0.37 13.51 0.95 10.64 16.81 11.64 0.37 54.29 - - 10.41
Adjustment for disposals - - - - 1.28 4.06 3.70 0.01 9.05 - - -
As at 31.03.2023 - 0.39 20.61 2.23 15.40 16.27 11.41 0.38 66.69 - - 13.05
Net block as at 31.03.2022 110.39 1.22 417.32 18.95 56.77 7.25 11.74 0.03 623.67 6.07 - 4.25
Net block as at 31.03.2023 110.39 1.20 436.29 17.83 51.95 7.71 13.38 0.16 638.91 2.72 - 1.62
14.1 The formalities regarding registration of title deed in respect of an immovable property acquired by the Company is yet to be executed.
The details are as below:
(a) As at 31 st March 2023
Description of Property, Plant & Gross Carrying Value Net Carrying Value Title deed held in the name of Whether title deed holder is a promoter, Property held since Reason for not being held in the
Equipment director or relative of promoter/ director name of the company
or employee of promoter/ director
Building - Office at Core 4, SCOPE Complex, 4.59 1.95 Land & Development officer No 1990 Pending formalities from Land & Development
New Delhi - 110003 under Ministry of Urban Officer, office flat allotted to the company at the
Development, New Delhi SCOPE a central government Complex has not been
registered in the name of the Company.
(b) As at 31st March 2022
Development, New Delhi SCOPE a central government Complex has not
been registered in the name of the Company.
184 185
14.2 As on 31st March 2023, certain Property, Plant & Equipment has been pledged as security against secured borrowings of the 15 Other non-financial assets
Company as per the details below: (₹ in Crores)
Particulars As at 31st March 2023 As at 31st March 2022 Unsecured, considered good
Gross Carrying Value 3.48 3.48 (A) Capital Advances 7.26 8.19
Net Carrying Value 2.36 2.41 (B) Other Advances 4.50 2.88
14.3 Capital Work in Progress (CWIP) (C) Balances with Govt. Authorities 26.11 20.35
(D) Pre-Spent Corporate Social Responsibility (CSR) Expenses 7.70 0.40
CWIP ageing schedule
(E) Prepaid Expenses 13.23 3.11
(₹ in Crores)
(F) Deferred Employee Benefits 10.84 11.11
Particulars As at 31 March 2023
st
As at 31 March 2022
st
(G) Other Assets 0.01 0.02
Amount in CWIP for a period of Total Amount in CWIP for a period of Total Total (A to G) 69.65 46.06
Less 1-2 2-3 More Less 1-2 2-3 More
than 1 years years than 3 than 1 years years than 3 16 Assets Classified as Held for Sale
year years year years (₹ in Crores)
Projects in Progress Particulars As at 31.03.2023 As at 31.03.2022

Assets Classified as Held for Sale-Building 0.34 0.86
- REC World - - - - - 4.59 - - - 4.59
Headquarter at Total 0.34 0.86
Gurugram 16.1 With a view to monetise its idle assets, during the year the Company has disposed certain residential building units through e-auction
- REC Township at 1.24 0.08 - 1.40 2.72 0.08 - 1.40 - 1.48 process, with carrying value ₹0.52 crores (previous year ₹1.18 crores), classified under ”Assets classified as held for sale” as required
Gurugram under Ind-AS 105. Such sale has resulted in gain of ₹4.08 crores during the current year (previous year ₹30.19 crores) (refer note 30).
Total 1.24 0.08 - 1.40 2.72 4.67 - 1.40 - 6.07 Further, residential building units with carrying value ₹0.34 crores (previous year ₹0.86 crores) classified under ”Assets classified as held
for sale” are pending for disposal as at 31st March 2023. The process for their disposal is expected to be completed during the year
There are no capital work in progress as on the reporting year where activity has been suspended.
2023-24 through e-auction process.
(b) CWIP completion schedule
17 Debt Securities
(₹ in Crores)
The Company has categorised all debt securities at amortised cost in accordance with the requirements of Ind AS 109.
Particulars As at 31st March 2023 As at 31st March 2022
(₹ in Crores)
To be completed in Total To be completed in Total Particulars As at 31.03.2023 As at 31.03.2022
Less 1-2 2-3 More Less 1-2 2-3 More Face Value Amortised Cost Face Value Amortised Cost
than 1 years years than 3 than 1 years years than 3
(A) Secured Long-Term Debt Securities
year years year years
(i) Institutional Bonds 1,955.00 2,029.81 1,955.00 2,065.31
Projects in Progress
(ii) 54EC Capital Gain Tax Exemption Bonds 35,866.55 37,124.32 24,146.13 25,025.49
- REC World - - - - - 4.59 - - - 4.59
(iii) Tax Free Bonds 10,307.08 10,671.07 11,808.74 12,205.52
Headquarter at
Gurugram (iv) Bond Application Money pending allotment 1,720.36 1,719.42 1,291.54 1,291.13
- REC Township at - - 2.72 - 2.72 - - - 1.48 1.48 Sub-total (A) 49,848.99 51,544.62 39,201.41 40,587.45
Gurugram (B) Unsecured Long-Term Debt Securities
Total - - 2.72 - 2.72 4.59 - - 1.48 6.07 (i) Institutional Bonds 148,262.70 152,705.20 144,086.60 149,010.97
(ii) Infrastructure Bonds 3.96 8.63 3.96 8.00
14.4 There has been no revaluation of Property, Plant & Equipment and Intangible Assets during the year (previous year Nil).
(iii) Foreign Currency Bonds 32,886.78 32,690.54 30,322.85 30,027.15
14.5 In the opinion of management, there are no events or changes in circumstances that indicate the impairment of PPE and Intangible
Assets in terms of Ind AS 36 ‘Impairment of Assets’. Accordingly, no provision for impairment has been made. Sub-total (B) 181,153.44 185,404.37 174,413.41 179,046.12
Total - Debt Securities (A+B) 231,002.43 236,948.99 213,614.82 219,633.57
14.6 While the Company has not made any specific borrowings for construction of a qualifying asset, the Company has capitalised
an amount of ₹ 0.03 crores (previous year ₹ 5.10 crores) borrowing costs on account of general borrowings at an average rate of Debt Securities issued in/ outside India
borrowings of 7.00% (previous year 7.94%) for the Company in terms of Ind AS 23 ‘Borrowing Costs’. (i) Debt Securities in India 198,115.65 204,258.45 183,291.97 189,606.42
14.7 Disclosure in respect of Intangible Assets as required under Ind-AS 38 “Intangible Assets” (ii) Debt Securities outside India 32,886.78 32,690.54 30,322.85 30,027.15
Amortisation Rate 20% (100% in case the total cost of the asset is ₹5,000 or less) Total - Debt Securities 231,002.43 236,948.99 213,614.82 219,633.57
Refer Note No. 19.2 for reconciliation between the figure represented in Face Value and Amortised Cost
186 187
17.1 Details of Secured Long-Term Debt Securities - Refer Note 18.6 for details of the security (₹ in Crores)
(i) Institutional Bonds
Face Value Amortised Cost Face Value Amortised Cost
(₹ in Crores)
Series 2013-14 Series 4A & 4B 150.00 155.54 150.00 155.48
Redeemable at par. Bonds amounting to ₹105.00 crores are
Face Value Amortised Cost Face Value Amortised Cost redeemable on 11.10.2023 and ₹ 45.00 crores are redeemable
123-IIIB Series - 9.34% Redeemable at par on 23.08.2024 1,955.00 2,029.81 1,955.00 2,065.31 on 11.10.2028 with interest rates varying from 8.18% to 8.54%
payable annually
Total - Institutional Bonds 1,955.00 2,029.81 1,955.00 2,065.31
Series 2013-14 Tranche 1 3,440.60 3,530.10 3,440.60 3,528.74
(ii) 54EC Capital Gain Tax Exemption Bonds Redeemable at par. Bonds amounting to ₹575.06 crores are
(₹ in Crores) redeemable on 25.09.2023, ₹2,810.26 crores are redeemable
on 25.09.2028 and ₹55.28 crores are redeemable on 26.09.2033
with interest rates varying from 8.01% to 8.71% payable
Face Value Amortised Cost Face Value Amortised Cost annually
Series XII (2018-19) - 5.75% Redeemable at par during 6,651.31 6,938.31 6,651.77 6,937.05 Series 2013-14 Tranche 2 1,059.40 1,087.25 1,059.40 1,086.83
financial year 2023-24 Redeemable at par. Bonds amounting to ₹ 419.32 crores are
Series XIII (2019-20) - 5.75% Redeemable at par during 6,157.82 6,419.74 6,157.72 6,417.26 redeemable on 22.03.2024, ₹ 530.42 crores are redeemable on
financial year 2024-25 23.03.2029 and ₹ 109.66 crores are redeemable on 24.03.2034
Series XIV (2020-21) - 5.75% and 5% Redeemable at par 5,312.07 5,513.14 5,312.07 5,510.93 with interest rates varying from 8.19% to 8.88% payable
during financial year 2025-26 annually
Series 2015-16 Tranche 1 700.00 714.98 700.00 714.82
Series XV (2021-22) - 5% Redeemable at par during financial 7,312.80 7,576.90 6,024.57 6,160.25
year 2026-27 Redeemable at par. Bonds amounting to ₹105.93 crores are
redeemable on 05.11.2025, ₹172.90 crores are redeemable on
Series XVI (2022-23) - 5% Redeemable at par during financial 10,432.55 10,676.23 - - 05.11.2030 and ₹421.17 crores are redeemable on 05.11.2035
year 2027-28 with interest rates varying from 6.89% to 7.43% payable
Total - 54EC Capital Gain Tax Exemption Bonds 35,866.55 37,124.32 24,146.13 25,025.49 annually
Total - Tax Free Bonds 10,307.08 10,671.07 11,808.74 12,205.52
(iii) Tax Free Bonds
(₹ in Crores) (iv) Bond Application Money Pending Allotment
Particulars As at 31.03.2023 As at 31.03.2022 (₹ in Crores)
Face Value Amortised Cost Face Value Amortised Cost Particulars As at 31.03.2023 As at 31.03.2022
Series 2015-16 Series 5A 300.00 306.39 300.00 306.33 Face Value Amortised Cost Face Value Amortised Cost
7.17% payable annually Redeemable at par on 23.07.2025 54EC Capital Gain Tax Exemption Bonds 1,720.36 1,719.42 1,291.54 1,291.13
Series 2011-12 2,160.33 2,288.71 2,160.33 2,287.99 5% Redeemable at par after 5 years from the deemed date of
Redeemable at par. Bonds amounting to ₹2,160.33 crores are allotment
redeemable on 27.03.2027 with interest rates varying from
Total - Bond Application Money Pending Allotment 1,720.36 1,719.42 1,291.54 1,291.13
8.12% to 8.32% payable annually
Series 2012-13 Series 2A & 2B 245.00 251.12 500.00 512.60 17.2 Details of Unsecured Long-Term Debt Securities
Redeemable at par. Bonds amounting to ₹245.00 crores are
redeemable on 22.11.2027 with interest rates of 7.38%payable (i) Institutional Bonds
annually (₹ in Crores)
Series 2012-13 Tranche 1 852.04 872.22 2,017.35 2,065.32 Particulars As at 31.03.2023 As at 31.03.2022
Redeemable at par. Bonds amounting to ₹852.04 crores are Face Value Amortised Cost Face Value Amortised Cost
179th Series - 8.15% Redeemable at par on 10.06.2022 - - 1,000.00 1,065.84
107 Series - 9.35% Redeemable at par on 15.06.2022
th
- - 2,378.20 2,554.82
Series 2012-13 Tranche 2 49.71 50.86 131.06 134.06
Redeemable at par. Bonds amounting to ₹49.71 crores are 186A Series - 6.90% Redeemable at par on 30.06.2022 - - 2,500.00 2,629.90
redeemable on 27.03.2028 with interest rates varying from 150 Series - 7.03% Redeemable at par on 07.09.2022
th
- - 2,670.00 2,775.76
7.04% to 7.54% payable annually 184B Series STRPP-C - 7.55% Redeemable at par on - - 300.00 311.59
Series 2013-14 Series 3A & 3B 1,350.00 1,413.90 1,350.00 1,413.35 26.09.2022**
Redeemable at par. Bonds amounting to ₹209.00 crores 152nd Series - 7.09% Redeemable at par on 17.10.2022 - - 1,225.00 1,264.38
are redeemable on 29.08.2023 and ₹1,141.00 crores are 111-II Series - 9.02% Redeemable at par on 19.11.2022 - - 2,211.20 2,283.72
155 Series - 7.45% Redeemable at par on 30.11.2022
th
- - 1,912.00 1,959.41
188 189
Particulars As at 31.03.2023 As at 31.03.2022 Particulars As at 31.03.2023 As at 31.03.2022
Face Value Amortised Cost Face Value Amortised Cost Face Value Amortised Cost Face Value Amortised Cost
187th Series - 7.24% Redeemable at par on 31.12.2022 - - 2,090.00 2,127.51 176th Series - 8.85% Redeemable at par on 16.04.2029 1,600.70 1,735.82 1,600.70 1,735.73
159th Series - 7.99% Redeemable at par on 23.02.2023 - - 950.00 957.53 178th Series - 8.80% Redeemable at par on 14.05.2029 1,097.00 1,171.24 1,097.00 1,169.96
188A Series - 7.12% Redeemable at par on 31.03.2023 - - 1,400.00 1,400.22 180B Series - 8.30% Redeemable at par on 25.06.2029 2,070.90 2,173.02 2,070.90 2,169.56
114th Series - 8.82% Redeemable at par on 12.04.2023 4,300.00 4,667.81 4,300.00 4,667.36 184A Series - 8.25% Partly Paid Debentures Redeemable at 1,160.80 1,209.72 870.60 907.18
195th Series - 6.92% Redeemable at par on 22.04.2023 2,985.00 3,179.66 2,985.00 3,179.43 par on 26.09.2029
191A Series - 6.80% Redeemable at par on 30.06.2023 1,100.00 1,106.52 1,100.00 1,106.39 192nd Series - 7.50% Redeemable at par on 28.02.2030 2,382.00 2,396.48 2,382.00 2,396.36
200th Series PP-MLD - 5.36% Redeemable at par on 500.00 573.12 500.00 546.01 188B Series - 7.89% Redeemable at par on 31.03.2030 1,100.00 1,100.10 1,100.00 1,100.09
30.06.2023* 189th Series - 7.92% Redeemable at par on 31.03.2030 3,054.90 3,054.97 3,054.90 3,054.91
184B Series STRPP-D - 7.55% Redeemable at par on 300.00 311.59 300.00 311.57 197th Series - 7.55% Redeemable at par on 11.05.2030 3,740.00 3,990.03 3,740.00 3,989.89
26.09.2023** 198B Series - 7.79% Redeemable at par on 21.05.2030 1,569.00 1,673.83 1,569.00 1,673.76
202B Series - 5.69% Redeemable at par on 30.09.2023 2,474.00 2,544.42 2,474.00 2,544.12 202A Series - 7.25% Redeemable at par on 30.09.2030 3,500.00 3,627.05 3,500.00 3,627.03
205A Series - 4.99 % Redeemable at par on 31.01.2024 2,135.00 2,151.85 2,135.00 2,151.79 203A Series - 6.80% Redeemable at par on 20.12.2030 5,000.00 5,094.07 5,000.00 5,094.06
209th Series - 5.79 % Redeemable at par on 20.03.2024 1,550.00 1,552.48 1,550.00 1,552.38 204A Series - 6.90% Redeemable at par on 31.01.2031 2,500.00 2,527.79 2,500.00 2,527.79
210th Series - 5.74 % Redeemable at par on 20.06.2024 4,000.00 4,178.81 4,000.00 4,215.56 201B Series - 6.90% Redeemable at par on 31.03.2031 1,300.00 1,359.80 1,300.00 1,359.79
180A Series - 8.10% Redeemable at par on 25.06.2024 1,018.00 1,077.71 1,018.00 1,075.09 213th Series - 6.92% Redeemable at par on 20.03.2032 1,380.00 1,382.88 1,380.00 1,382.86
191B Series - 6.99% Redeemable at par on 30.09.2024 1,100.00 1,106.58 1,100.00 1,106.48 218B Series - 7.69 % Redeemable at par on 31.01.2033 2,004.40 2,036.80 - -
212th Series - Floating (linked to T-Bill) Redeemable at par on 2,500.00 2,573.36 2,500.00 2,538.84 214B Series - 7.50% Redeemable at par on 28.02.2033 1,947.60 1,960.18 - -
31.10.2024
214B (re-issue) Series - 7.50% Redeemable at par on 3,000.00 2,984.49 - -
186B Series - 7.40% Redeemable at par on 26.11.2024 1,500.00 1,538.06 1,500.00 1,537.91 28.02.2033
128th Series - 8.57% Redeemable at par on 21.12.2024 2,250.00 2,418.06 2,250.00 2,418.88 217th Series - 7.53 % Redeemable at par on 31.03.2033 500.00 510.86 - -
129th Series - 8.23% Redeemable at par on 23.01.2025 1,925.00 2,063.05 1,925.00 2,063.71 182nd Series - 8.18% Redeemable at par on 22.08.2034 5,063.00 5,314.68 5,063.00 5,314.67
130th Series - 8.27% Redeemable at par on 06.02.2025 2,325.00 2,492.55 2,325.00 2,493.36 183rd Series - 8.29% Redeemable at par on 16.09.2034 3,028.00 3,163.26 3,028.00 3,163.24
131st Series - 8.35% Redeemable at par on 21.02.2025 2,285.00 2,304.28 2,285.00 2,304.25 207th Series - 7.02 % Redeemable at par on 31.01.2036 4,589.90 4,641.76 4,589.90 4,641.75
190A Series - 6.88% Redeemable at par on 20.03.2025 2,500.00 2,514.67 2,500.00 2,514.48 208th Series - 7.40 % Redeemable at par on 15.03.2036 3,613.80 3,625.49 3,613.80 3,625.48
201A Series - 5.90% Redeemable at par on 31.03.2025 900.00 935.42 900.00 935.39 215th series - 7.65 % Redeemable in 5 equal tranches on 3,889.00 3,992.12 - -
133rd Series - 8.30% Redeemable at par on 10.04.2025 2,396.00 2,453.74 2,396.00 2,453.50 30.11.2033, 30.11.2034,30.11.2035,30.11.2036 and 30.11.2037
94th Series - 8.75% Redeemable at par on 09.06.2025 1,250.00 1,339.00 1,250.00 1,339.00 216B Series - 7.67 % Redeemable at par on 30.11.2037 2,000.00 2,049.92 - -
95-II Series - 8.75% Redeemable at par on 14.07.2025 1,800.00 1,913.49 1,800.00 1,913.49 Total - Institutional Bonds 148,262.70 152,705.20 144,086.60 149,010.97
136th Series - 8.11% Redeemable at par on 07.10.2025 2,585.00 2,671.58 2,585.00 2,670.75 * PP-MLD- Principal Protected Market Linked Debentures
203B Series - 5.85% Redeemable at par on 20.12.2025 2,777.00 2,821.05 2,777.00 2,821.01 ** STRPP- Separately Transferable Redeemable Principal Parts
204B Series - 5.81% Redeemable at par on 31.12.2025 2,082.00 2,111.49 2,082.00 2,111.47
(ii) Infrastructure Bonds
205B Series - 5.94 % Redeemable at par on 31.01.2026 2,000.00 2,014.64 2,000.00 2,018.82
(₹ in Crores)
214A Series - 7.32% Redeemable at par on 28.02.2026 500.00 503.15 - -
219 series - 7.60 % Redeemable at par on 28.02.2026 3,148.70 3,186.42 - - Particulars As at 31.03.2023 As at 31.03.2022
220B series - 7.69 % Redeemable at par on 31.03.2033 with 1,600.10 1,605.47 - - Face Value Amortised Cost Face Value Amortised Cost
Put option exercisable on 31.03.2026 Series-II (2011-12) - Redeemable at par 3.96 8.63 3.96 8.00
218A Series - 7.56 % Redeemable at par on 30.06.2026 3,000.00 3,048.29 - -
Total - Infrastructure Bonds 3.96 8.63 3.96 8.00
211th Series - 6.23% Redeemable at par on 31.10.2031 with 1,200.00 1,230.57 1,200.00 1,232.57
Put/ Call option exercisable on 31.10.2026 Details of Infrastructure Bonds issued are as under :
140th Series - 7.52% Redeemable at par on 07.11.2026 2,100.00 2,161.97 2,100.00 2,152.19
142nd Series - 7.54% Redeemable at par on 30.12.2026 3,000.00 3,025.73 3,000.00 3,066.06 Series II (2011-12) allotted on 15.02.2012
147th Series - 7.95% Redeemable at par on 12.03.2027 2,745.00 2,717.93 2,745.00 2,750.60 (₹ in Crores)
156th Series - 7.70% Redeemable at par on 10.12.2027 3,533.00 3,614.40 3,533.00 3,614.30 Rate of Interest As at As at Redemption Details
216A Series - 7.55 % Redeemable at par on 31.03.2028 1,701.50 1,701.13 - - 31.03.2023 31.03.2022
220A Series - 7.77 % Redeemable at par on 31.03.2028 2,000.00 2,006.58 - - 9.15% Cumulative 2.83 2.83 Redeemable on the date falling 15
162nd Series - 8.55% Redeemable at par on 09.08.2028 2,500.00 2,637.42 2,500.00 2,637.39 9.15% Annual 1.13 1.13 years from the date of allotment
163rd Series - 8.63% Redeemable at par on 25.08.2028 2,500.00 2,628.04 2,500.00 2,628.01 Total 3.96 3.96
168th Series - 8.56% Redeemable at par on 29.11.2028 2,552.40 2,625.73 2,552.40 2,625.69 Amounts have been shown at face value
190 191
(iii) Foreign Currency Bonds (₹ in Crores)
Principal O/s Amortised Cost Principal O/s Amortised Cost
Borrowings (other than Debt Securities) in/ outside India
(i) Borrowings in India 91,410.03 91,850.61 70,944.20 71,321.72
4.75% US $500 Mn Bonds - Redeemable at par on 19.05.2023 4,110.85 4,181.61 3,790.36 3,848.85 (ii) Borrowings outside India 45,553.26 45,263.52 35,634.60 35,329.87
5.250% US $700 Mn Bonds - Redeemable at par on 13.11.2023 5,755.18 5,858.35 5,306.50 5,387.23 Total - Borrowings (other than Debt Securities) 136,963.29 137,114.13 106,578.80 106,651.59
3.375% US $650 Mn Bonds - Redeemable at par on 25.07.2024 5,344.10 5,366.61 4,927.46 4,941.02 Please refer Note No. 19.2 for reconciliation between the figure represented in Face Value and Amortised Cost
3.50% US $500 Mn Bonds - Redeemable at par on 12.12.2024 4,110.85 4,148.36 3,790.36 3,822.14 18.1 Details of Unsecured Long-term Borrowings
2.25% US $500 Mn Bonds - Redeemable at par on 01.09.2026 4,110.85 4,107.36 3,790.36 3,785.82
2.75% US $400 Mn Bonds - Redeemable at par on 13.01.2027 3,288.68 3,302.69 3,032.28 3,045.13 (i) Term Loans from Banks
(₹ in Crores)
3.875% US $450 Mn Green Bonds - Redeemable at par on 3,699.76 3,425.80 3,411.32 3,102.47
07.07.2027 Particulars As at 31.03.2023 As at 31.03.2022
4.625% US $300 Mn Bonds - Redeemable at par on 22.03.2028 2,466.51 2,299.76 2,274.21 2,094.49 Principal O/s Amortised Cost Principal O/s Amortised Cost
Total - Foreign Currency Bonds 32,886.78 32,690.54 30,322.85 30,027.15 - JP Morgan Chase Bank - - 1,500.00 1,500.00
₹1,500 crores repaid on 23.09.2022
Global Medium Term Note (GMTN) Programme
- Mizuho Bank - - 300.00 300.00
The Company has a Global Medium Term Note (GMTN) Programme of USD 7 Billion which is listed on SGX-ST (Singapore Stock Exchange - ₹300 crores repaid on 21.10.2022
Securities Trading), LSE-ISM (London Stock Exchange – International Securities Market), Global Securities Market (GSM) of the India INX (India
International Exchange) and NSE IFSC (NSE International Exchange). The summay of funds raised under the GMTN Programme is as below: - Karnataka Bank 499.99 499.99 - -
₹499.99 crores repayable on 15.05.2025
Particulars For the year ended 31.03.2023 For the year ended 31.03.2022
- Punjab & Sind Bank 700.00 700.00 - -
Funds raised during the year under GMTN Programme Nil* USD 0.4 Billion ₹700 crores repayable on 09.12.2025
Cumulative amount raised under GMTN Programme USD 4.4 Billion USD 4.4 Billion - Jammu & Kashmir Bank 299.95 299.95 300.00 300.05
Outstanding amount out of funds raised under GMTN Programme USD 4.0 Billion USD 4.0 Billion ₹299.95 crores repayable on 28.10.2026
* Subsequent to the Balance Sheet date, the Company has raised USD 750 Million through Green Bonds under its GMTN Programme. Con- - Karur Vysya Bank 250.00 250.05 250.00 250.04
sequently, as on the date of signing of the Balance Sheet, the cumulative amount raised under GMTN Programme is USD 5.15 Billion and the ₹250 crores repayable on 29.10.2026
outstanding amount out of funds raised under GMTN Programme is USD 4.75 Billion.
- Deutsche Bank 1,000.00 1,000.22 1,000.00 1,000.15
The amounts raised during the year have been utilized for the stated objects in the Offering Circular. There has been no default as on the ₹500 crores repayable on 18.12.2023 and ₹ 500 crores repayable
Balance Sheet date in the repayment of debt securities and borrowings and the Company has met all its debt servicing obligations, whether on 15.06.2027
principal or interest, during the year. Further, there has not been any breach of financial covenants under the Loan Agreements as on the
- South Indian Bank 500.00 500.00 300.00 300.00
Balance Sheet date.
₹300 crores repayable on 08.11.2026 and ₹ 200 crores repayable
18 Borrowings (Other than Debt Securities) on 04.08.2027
- HDFC Bank 16,350.00 16,449.77 12,000.00 12,040.15
The Company has categorised all borrowings (other than debt securities) at Amortised Cost in accordance with the requirements of
₹2,000 crores repayable on 15.06.2023, ₹1,500 crores
Ind AS 109.
repayable on 19.06.2023, ₹300 crores repayable on
(₹ in Crores)
29.09.2023, ₹1,500 crores repayable on 30.09.2023, ₹350
Particulars As at 31.03.2023 As at 31.03.2022 crores repayable on 11.10.2023, ₹350 crores repayable
Principal O/s Amortised Cost Principal O/s Amortised Cost on 05.11.2023, ₹500 crores repayable on 15.01.2024, ₹850
(A) Unsecured Long-Term Borrowings crores repayable on 17.11.2026, ₹2,000 crores repayable on
(i) Term Loans from Banks 56,298.20 56,402.09 42,878.32 42,919.86 31.03.2027, ₹2,000 crores repayable on 07.09.2027, ₹2,500
crores repayable on 29.12.2027 and ₹2,500 crores repayable
(ii) Term Loans from Financial Institutions 6,000.00 6,000.64 6,800.00 6,800.00
on 27.02.2028.
(iii) Term Loan in Foreign Currency 45,553.26 45,263.52 35,634.60 35,329.87
(iv) Term Loans from Govt. of India (NSSF) 10,000.00 10,325.12 10,000.00 10,325.12 - Indian Bank 1,500.00 1,500.00 - -
(v) Lease Liability 0.02 0.02 0.03 0.03 ₹1,500 crores repayable in 6 equal annual instalments starting
from 04.08.2024 and final instalment on 04.08.2029
Sub-total (A) 117,851.48 117,991.39 95,312.95 95,374.88
(B) Unsecured Short-Term Borrowings - Bank of Baroda 5,000.00 5,001.08 - -
(i) FCNR (B) Loans 15,424.22 15,427.63 9,854.92 9,861.13 ₹5,000 crores repayable in 6 annual instalments starting from
30.09.2024 and final instalment due on 29.09.2029
(ii) Short Term Loans/ Loans repayable on demand from Banks 3,600.00 3,607.52 1,410.93 1,415.58
(iii) Overdrafts/ Cash Credit repayable on demand from Banks 87.59 87.59 - - - ICICI Bank 4,000.00 4,000.85 2,850.00 2,850.48
Sub-total (B) 19,111.81 19,122.74 11,265.85 11,276.71 ₹4,000 crores repayable on 23.01.2030
Total - Borrowings (other than Debt Securities) (A to B) 136,963.29 137,114.13 106,578.80 106,651.59
192 193
(₹ in Crores)
(iii) Foreign Currency Borrowings
Principal O/s Amortised Cost Principal O/s Amortised Cost Particulars As at 31.03.2023 As at 31.03.2022
- HSBC Bank 3,402.49 3,403.23 3,402.49 3,403.03 Principal O/s Amortised Cost Principal O/s Amortised Cost
₹565 crores repayable on 19.05.2025, ₹187.49 crores repayable (1) ODA Loans - Guaranteed by Govt. of India
on 18.12.2025, ₹900 crores repayable on 25.03.2026, ₹500 crores
JICA Loan - JICA-II repaid on 20.03.2023 - - 23.47 23.48
repayable on 06.07.2026, ₹500 crores repayable on 09.07.2026,
₹85 crores repayable on 25.03.2030 and ₹665 crores repayable KfW-III Loan - Repayable in equal half-yearly 141.51 142.17 222.81 223.55
on 28.03.2030 instalments of €5.26 Mn till 30.03.2024, next instalment
falling due on 30.06.2023
- Bank of India 1,499.87 1,500.18 749.87 750.00
Sub-Total (1) 141.51 142.17 246.28 247.03
₹749.87 repayable in 5 annual instalments starting from
27.09.2024 and final instalment on 27.09.2028 and ₹750 crores (2) ODA Loans - Without Govt. Guarantee
repayable on 31.03.2030 KfW-IV Loan - Repayable in equal half-yearly 1,578.56 1,609.90 1,637.43 1,639.80
instalments of €12.00 Mn till 15.11.2030, next
- Union Bank of India 2,999.68 3,000.33 1,999.68 1,999.68
instalment falling due on 15.05.2023
₹1,000 crores repayable on 04.01.2026 and ₹1,999.68 crores
repayable in 5 annual instalments starting from 31.03.2027 and Sub-Total (2) 1,578.56 1,609.90 1,637.43 1,639.80
final instalment on 31.03.2031 (3) Bilateral/ Syndicated Loans
- State Bank of India 10,900.26 10,900.26 12,729.30 12,729.30 US $200 Mn - Repaid on 28.07.2022 - - 1,516.14 1,516.11
₹ 699.84 crores repayable on 15.10.2023, ₹919.44 crores US $150 Mn - Repaid on 11.09.2022 - - 1,137.11 1,136.75
repayable in 2 annual instalments due on 05.09.2023 and ¥ 10,327.12 Mn - Repayable on 08.08.2023 638.22 635.36 642.66 636.04
05.03.2024, ₹3,569.93 crores repayable in 5 semi-annual US $250 Mn - Repayable on 29.08.2023 2,055.42 2,064.76 1,895.18 1,895.18
instalments starting from 15.07.2023 and last instalment due
US $250 Mn - Repayable on 27.03.2024 2,055.42 2,036.56 1,895.18 1,880.88
on 15.07.2025, ₹1,711.19 crores repayable on 12.12.2027 and
₹3,999.86 crores repayable in structured instalments starting US $150 Mn - Repayable on 29.03.2024 and $ 75 Mn 1,233.25 1,224.65 1,137.11 1,125.35
from 29.10.2023 and last instalment on 29.10.2031 repayable on 14.05.2024
US $100 Mn - Repayable on 01.07.2024 822.17 830.83 758.07 755.34
- Punjab National Bank 4,995.97 4,996.19 4,996.98 4,996.98
₹1,996.66 crores repayable in 3 annual instalments with first SG $72.07 Mn - Repayable on on 30.03.2025 445.48 440.55 403.21 396.92
instalment due on 27.08.2023, and ₹1,999.66 crores repayable US $75 Mn - Repayable on 30.03.2025 616.63 606.46 568.55 561.90
on 11.11.2026 and ₹ 999.66 crores repayable in 10 semi-annual ¥ 10,519 Mn - Repayable on 25.09.2025 650.07 643.21 654.60 645.86
instalments starting from 29.03.2028 and final instalment due US $170 Mn - $100 Mn repayable on 26.03.2025 and $ 1,397.69 1,400.67 1,288.72 1,288.65
on 29.12.2031 70 Mn repayable on 06.10.2025
- Central Bank 2,399.99 2,399.99 500.00 500.00 US $425 Mn - Repayable on 16.03.2026 3,494.22 3,467.48 3,221.80 3,207.65
₹1,499.99 repayable on 26.03.2024, ₹400 crores repayable on US $600 Mn - Repayable on 25.08.2026 4,933.01 4,899.73 4,548.43 4,499.53
17.10.2025 and ₹500 crores repayable in 7 annual instalments
US $75 Mn - Repayable on 07.10.2026 616.63 626.45 568.55 565.00
starting from 28.02.2026 and final instalment due on 29.02.2032
Total - Unsecured Term Loans from Banks 56,298.20 56,402.09 42,878.32 42,919.86
¥ 37,506.63 Mn - Repayable on 03.03.2027 2,317.91 2,285.95 2,334.04 2,293.52
(ii) Term Loans from Others - Financial Institutions US $100 Mn - Repayable on 13.06.2027 822.17 815.24 - -
(₹ in Crores) US $200 Mn - Repayable on 28.07.2027 1,644.34 1,640.92 - -
US $150 Mn - Repayable on 13.09.2027 1,233.25 1,221.79 - -
SGD 213.21 Mn - Repayable on 27.10.2027 1,317.80 1,306.89 - -
Principal O/s Amortised Cost Principal O/s Amortised Cost € 254.19 Mn - Repayable on 31.10.2027 2,277.77 2,258.06 - -
- Indian Infrastructure Finance Company Ltd. (IIFCL) 5,500.00 5,500.53 6,800.00 6,800.00 € 349.83 Mn - Repayable on 27.03.2028 3,134.74 3,085.56 - -
₹ 1,500 crores repayable on 23.02.2024, ₹ 500 crores
Sub-Total (3) 43,833.19 43,511.45 33,750.89 33,443.04
repayable on 14.03.2024, ₹ 1,000 crores repayable on
25.03.2026, ₹ 1,000 crores repayable on 27.03.2026, ₹ 1,000 Total - Foreign Currency Borrowings (1+2+3) 45,553.26 45,263.52 35,634.60 35,329.87
crores repayable on 09.08.2026 and ₹ 500 crores repayable (iv) Term Loans from Govt. of India - National Small Savings Fund (NSSF)
on 28.07.2027
(₹ in Crores)
- National Bank for Financing Infrastructure and 500.00 500.11 - - Particulars As at 31.03.2023 As at 31.03.2022
Development (NaBFID)
₹ 500 crores repayable in 7 equal annual instalment starting - Loan from NSSF 10,000.00 10,325.12 10,000.00 10,325.12
from 31.03.2027 and last instalment due on 31.03.2033
₹5, 000 crores repayable on 13.12.2028 and ₹5,000 crores
6,000.00 6,000.64 6,800.00 6,800.00 repayable on 04.10.2029
Total - Term Loans from Govt. 10,000.00 10,325.12 10,000.00 10,325.12
194 195
18.2 Unsecured Short-Term Borrowings The Bond Series XIV, XV and XVI of 54EC Capital Gain Tax Exemption Bonds are secured by first pari passu charge on hypothecation of loan
assets (other than those that are exclusively charged/ earmarked to lenders / other Trustees) in favour of SBICap Trustee Company Ltd.
(i) FCNR (B) Loans
Refer Note No. 9 and 14.2 for the carrying value of loan assets and Property, Plant and Equipment (PPE) pledged as security.
(₹ in Crores)
Particulars As at 31.03.2023 As at 31.03.2022 18.7 No charges or satisfaction are yet to be registered with Registrar of Companies (ROC) beyond the respective statutory date.
Principal O/s Amortised Cost Principal O/s Amortised Cost 19 Subordinated Liabilities
US$200 Mn - Repaid on 24.05.2022 - - 1,516.14 1,517.78
US$150 Mn - Repaid on 27.05.2022 - - 1,137.11 1,137.16 The Company has categorised all subordinated liabilities at amortised cost in accordance with the requirements of Ind AS 109.
(₹ in Crores)
US$200 Mn - Repaid on 03.06.2022 - - 1,516.14 1,516.21
US$25 Mn - Repaid on 07.06.2022 - - 189.52 189.72 Particulars As at 31.03.2023 As at 31.03.2022
US$150 Mn - Repaid on 18.06.2022 - - 1,137.11 1,137.17 Face Value Amortised Cost Face Value Amortised Cost
US$200 Mn - Repaid on 10.12.2022 - - 1,516.14 1,517.90 (i) 115th Series - Subordinate Tier-II Bonds - 2,500.00 2,668.34 2,500.00 2,668.11
US$75 Mn - Repaid on 14.12.2022 - - 568.55 569.21 8.06% Redeemable at par on 31.05.2023
US$200 Mn - Repaid on 30.12.2022 - - 1,516.14 1,517.91 (ii) 175th Series - Subordinate Tier-II Bonds - 2,151.20 2,079.90 2,151.20 2,100.70
8.97% Redeemable at par on 28.03.2029
US$100 Mn - Repaid on 23.02.2023 - - 758.07 758.07
(iii) 199th Series - Subordinate Tier-II Bonds - 1,999.50 2,025.06 1,999.50 2,047.66
US$200 Mn - Repayable on 24.05.2023 1,644.34 1,644.34 - -
7.96% Redeemable at par on 15.06.2030
Total - Subordinated Liabilities 6,650.70 6,773.30 6,650.70 6,816.47
Subordinated Liabilities in/ outside India
US$75 Mn - Repayable on 07.06.2023 616.63 616.63 - -
(ii) Borrowings outside India - - - -
US$100 Mn - Repayable on 15.12.2023 822.17 822.17 - - 19.1 Ratings assigned by credit rating agencies and migration of ratings during the year
US$200 Mn - Repayable on 29.12.2023 1,644.34 1,644.60 - - Particulars Rating
€ 69.77 Mn - Repayable on 16.01.2024 625.17 627.48 - - Domestic Long-term Borrowings CRISIL AAA, ICRA AAA, CARE AAA, IND AAA
Domestic Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAA, ICRA PP-MLD AAA
Total - FCNR (B) Loans 15,424.22 15,427.63 9,854.92 9,861.13
Domestic Perpetual Bonds CRISIL AAA, CARE AA+
18.3 Term Loans from banks/ financial institutions/ Govt. as mentioned in Note No. 18.1 (i), (ii) and (iv) have been raised at interest rates Domestic Short term Borowings CRISIL A1+, ICRA A1+, CARE A1+, IND A1+
ranging from 5.38% to 8.29% payable on monthly/quarterly/semi annual rests. International Long-term Issuer Rating BBB- (Fitch), Baa3 (Moody's)
18.4 Foreign Currency Borrowings in Note No. 18.1(iii) have been raised fixed interest rates ranging from 0.65% to 1.86% per annum and There has been no migration of ratings during the year.
variable interest rates ranging from a spread of 13 bps to 210 bps over external benchmarks including 3/6 Months’ USD LIBOR (London
19.2 Reconciliation between carrying values and the contractual amounts outstanding in respect of Borrowings:
Inter Bank Offered Rate), 3/6 Months’ EURIBOR (Euro Inter Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate),
3/6 Months’ Term SOFR, SORA (Singapore Overnight Rate Average), TONAR (Tokyo Overnight Average Rate), SOFR (Secured Overnight (₹ in Crores)
Financing Rate) and Credit Adjustment Spread (CAS) as applicable on transition of loans to new benchmark rates. Particulars Debt Securities Other Subordinated Total
Borrowings Liabilities
18.5 The Company has not borrowed any funds from the banks or financial institutions on the basis of security of current assets.
As at 31st March 2023
18.6 Security Details of Secured Debt Securities and Borrowings Total Amount as per Ind-AS 236,948.99 137,114.13 6,773.30 380,836.42
Less: Interest accrued on Borrowings classified under (6,730.41) (670.87) (296.95) (7,698.23)
For all the secured bonds issued by the Company and outstanding as at balance sheet date, 100% security cover has been maintained
the same head as per Ind-AS
by way of mortgage on certain immovable properties and/or charge on the receivables of the Company.
Add: Ind-AS Adjustments including EIR 783.85 520.03 174.35 1,478.23
The Bond Series 123-IIIB of Institutional Bonds are secured by way of first pari passu charge on the specified immovable property and Total Borrowings Outstanding 231,002.43 136,963.29 6,650.70 374,616.42
the loan assets of the Issuer which are charged to other lender / trustee and as may be agreed between the Issuer and the Trustee,
pursuant to the terms of the Bond Trust Deed with a minimum security cover of one time of the aggregate face value of amount of
bonds outstanding at all times and amount of interest due thereon in favor of IDBI Trusteeship Services Ltd. Total Amount as per Ind-AS 219,633.57 106,651.59 6,816.47 333,101.63
Less: Interest accrued on Borrowings classified under (6,737.95) (430.69) (296.94) (7,465.58)
Tax Free Bonds issued during FY 2011-12 are secured by first pari passu charge on premises at Shop No. 12, Ground Floor, Block No. 35, the same head as per Ind-AS
Church Road, Mylapore, Chennai and hypothecation of loan assets of ₹ 4,998.66 crores of MSEDCL in favour of Vistra ITCL (India) Ltd. Add: Ind-AS Adjustments including EIR 719.20 357.90 131.17 1,208.27
(formerly known as IL&FS Trust Company Ltd.).
Total Borrowings Outstanding 213,614.82 106,578.80 6,650.70 326,844.32
Tax Free Bonds issued during FY 2013-14 are secured by first pari passu charge on the loan assets (other than those that are exclusively
charged/earmarked to lenders / other Trustees) of the Company in favour of SBICap Trustee Company Ltd. 19.3 The Company raises funds in different currencies through a mix of term loans from banks/ financial institutions/ Govt. agencies and
bonds of different tenors through private placement of debt securities. The amounts raised during the year have been utilized for
The Bond Series XII and XIII of 54EC Capital Gain Tax Exemption Bonds and Tax Free Bonds issued during FY 2012-13 & 2015-16 are the stated objects in the offer document/ information memorandum. There has been no default as on the Balance Sheet date in the
secured by first pari passu charge on (a) mortgage of premises at Sub Plot No. 8, TPS No 2, FP No. 584P, situated at Village Subhanpura, repayment of debt securities, borrowings and subordinated liabilities and the Company has met all its debt servicing obligations,
Distt Vadodara and (b) hypothecation of loan assets (other than those that are exclusively charged/ earmarked to lenders / other whether principal or interest, during the year. Further, there has not been any breach of covenant of Debt Securities, Borrowings and
Trustees) in favour of SBICap Trustee Company Ltd. Debt Securities issued by the company.
196 197
19.4 The Company is a ‘Large Corporate’ in terms of the ‘Framework for Fund raising by issuance of Debt Securities by Large Entities’ laid Net amount of ₹0.75 crores as at 31st March 2023 (₹0.73 crores as at 31st March 2022) represents the balance amount of interest subsidy
under the SEBI Circular No. SEBI/HO/DDHS/P/CIR/2021/613 dated 10th August 2021. Disclosures required under the said circular are fund, which is to be passed on to the borrowers against their interest liability arising in future, under Accelerated Generation & Supply
given below: Programme (AG&SP), which comprises of the following :-
(all figures in ₹ Crores)
(₹ in Crores)
Particulars Details
(1) Name of the company REC Limited
Opening Balance of Interest Subsidy Fund 0.73 0.71
(2) CIN L40101DL1969GOI005095
Add: Interest earned during the year 0.02 0.02
(3) Outstanding borrowing of company as on 31st March 2023* 278,784.64
(4) Highest Credit Rating during the previous FY along with name of the Credit Rating Agency "ICRA AAA, CRISIL AAA, CARE AAA, Less: Interest subsidy passed on to the borrower - -
IRRPL AAA" Closing Balance of Interest Subsidy Fund 0.75 0.73
(5) Name of Stock Exchange in which the fine shall be paid, in case of shortfall in the Bombay Stock Exchange
20.3 Government of India has appointed REC Ltd. as a nodal agency for implementation of Deen Dayal Upadhyaya Gram Jyoti Yojna
required borrowing under the framework
(DDUGJY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) and Revamped Distribution Sector Scheme (RDSS). The funds
Details of the borrowings received for disbursement to various agencies under the schemes are kept in a respective separate bank accounts. The undisbursed
(i) 3-year block period FY 22-23, FY 23-24 & FY 24-25 funds for the schemes (including the funds received under erstwhile RGGVY Scheme) including interest earned thereto are classified
(ii) Incremental borrowing done in the FY 2022-23 (a) 60,644.91 under “Undisbursed Funds to be disbursed as Subsidy/ Grant” under the head “Other Financial Liabilities”.
(iii) Mandatory borrowing to be done through debt securities in FY 2022-23 (b) = (25% 15,161.23 20.4 The movement in Interest on Subsidy/ Grant is explained as under:
of a) (₹ in Crores)
(iv) Actual borrowings done through debt securities in FY 2022-23 (c) 37,733.91 Particulars Year ended 31.03.2023 Year ended 31.03.2022
(v) Shortfall in the borrowing through debt securities, if any, for FY 2021-22 carried Nil Opening Balance 3.95 2.63
forward to FY 2022-23 (d)
Add: Interest earned during the year 4.21 19.82
(vi) Quantum of (d), which has been met from (c) (e) Nil
Less: Amount refunded to Govt. during the year (5.04) (18.50)
(vii) Shortfall, if any, in the mandatory borrowing through debt securities for FY 2022- Nil
23 {after adjusting for any shortfall in borrowing for FY 2021-22 which was carried Closing Balance 3.12 3.95
forward to FY 2022-23 (f)= (b)-[(c)-(e)]
20.5 For meeting GOI’s funding requirement of DDUGJY Scheme, during the year, the Company has raised funds an aggregate amount of
* As per the SEBI circular, borrowings as mentioned in (3) above include all outstanding borrowings with original maturity of more than 1 year, but do not
₹ Nil (Previous year Nil) through unsecured, redeemable, non-convertible, taxable bonds in the nature of debentures of face value of
include external commercial borrowings.
₹10 lacs at par on private placement basis. As per Ministry of Finance (MoF) letter dated 2nd December, 2020 and 3rd March, 2021, the
20 Other Financial Liabilities repayment of principal and interest of the above bonds shall be made by GoI by making suitable budget provisions in the demand of
(₹ in Crores) Ministry of Power. Accordingly, the amount of such bonds along-with interest is also appearing as recoverable by the Company from
Particulars As at 31.03.2023 As at 31.03.2022 Govt. of India (Note 11).
(A) Unpaid Dividends (Refer Note 20.1) 6.79 6.39 Details of the GoI Fully Serviced Bonds raised are as follows:
(B) Unpaid Principal & Interest on Bonds (Refer Note 20.1) (₹ in Crores)
- Matured Bonds & Interest Accrued thereon 25.66 22.01 Particulars Coupon Rate Interest Redemption As at As at
- Interest on Bonds 11.17 6.72 Frequency Date 31.03.2023 31.03.2022
Sub-total (B) 36.83 28.73 GoI-I Series 8.09% Semi-annual 3/21/2028 1,837.00 1,837.00
(C) Funds Received from Govt. of India for Disbursement as Subsidy/ Grant 96,263.30 95,578.81 GoI-II Series 8.01% Semi-annual 3/24/2028 1,410.00 1,410.00
(cumulative)
GoI-III Series 8.06% Semi-annual 3/27/2028 753.00 753.00
Add: Interest on such funds (net of refund) 3.12 3.95
GoI-IV Series 8.70% Semi-annual 9/28/2028 3,000.00 3,000.00
Less: Disbursed to Beneficiaries (cumulative) (96,238.70) (94,808.08)
Undisbursed Funds to be disbursed as Subsidy/ Grant 27.72 774.68 GoI-V Series 8.54% Semi-annual 11/15/2028 3,600.00 3,600.00
(D) Payables towards Bonds Fully serviced by Govt. of India 24,318.29 24,318.29 GoI-VI Series 8.80% Semi-annual 1/22/2029 2,027.00 2,027.00
(E) Other Liabilities 784.95 447.75 GoI-VII Series 8.60% Semi-annual 3/8/2029 1,200.00 1,200.00
Total (A to E) 25,174.58 25,575.84 GoI-VIII Series 8.30% Semi-annual 3/25/2029 4,000.00 4,000.00
20.1 Unpaid dividends, unpaid principal and interest on bonds include the amounts which have either not been claimed by the investors GoI- IX Series 7.14% Semi-annual 3/2/2030 1,500.00 1,500.00
or are on hold pending formalities pursuant to investors’ claims etc. The amount due to be transferred to Investor Education and
GoI- X Series 8.25% Semi-annual 3/26/2030 532.30 532.30
Protection Fund (IEPF) as at 31st March 2023 is ₹2.68 crores (₹1.22 crores as at 31st March 2022) which has been transferred within the
prescribed time limit. GoI- XI Series 7.20% Semi-annual 3/31/2030 1,750.00 1,750.00
20.2 Subsidy Under Accelerated Generation & Supply Programme (AG&SP): GoI- XII Series 6.45% Semi-annual 1/7/2031 1,000.00 1,000.00
The Company is maintaining an Interest Subsidy Fund Account and was given AG&SP subsidy (for disbursement to the eligible GoI- XIII Series 6.63% Semi-annual 1/28/2031 1,000.00 1,000.00
borrowers) by Govt. of India at net present value calculated at indicative rates and year in accordance with GOI’s letter vide D.O.No. GoI- XIV Series 6.50% Semi-annual 3/26/2031 500.00 500.00
32024/17/97-PFC dated 23.09.1997 and O.M.No.32024/23/2001-PFC dated 07.03.2003 irrespective of the actual repayment schedule,
Total 24,109.30 24,109.30
moratorium year and duration of repayment of the eligible schemes. The impact of difference between the indicative rate and year
considered at the time of drawl and the actual can be ascertained only after the end of the respective schemes.
198 199
21 Current tax liabilities (net) 24 Equity Share Capital
No. of Shares Amount No. of Shares Amount
Provision for Income Tax - 18.01
Authorised :
Less: Advance Income-tax & TDS - (7.76) Equity shares of ₹ 10 each 5,000,000,000 5,000.00 5,000,000,000 5,000.00
Current tax liabilities (Net) - 10.25 Issued, Subscribed and Paid up :
Fully paid up Equity shares of ₹ 10 each 2,633,224,000 2,633.22 1,974,918,000 1,974.92
22 Provisions
Total 2,633,224,000 2,633.22 1,974,918,000 1,974.92
(₹ in Crores)
24.1 Reconciliation of the number of shares outstanding at the beginning and at the end of the year
(₹ in Crores)
Provisions for
Particulars For the year ended 31.03.2023 For the year ended 31.03.2022
(A) Employee Benefits
No. of Shares Amount (₹ in cr.) No. of Shares Amount (₹ in cr.)
Gratuity 2.68 0.34
Share Capital at the beginning of the year 1,974,918,000 1,974.92 1,974,918,000 1,974.92
Earned Leave Liability 27.49 25.17
Add: Bonus Shares issued & allotted during the year 658,306,000 658.30 - -
Post Retirement Medical Benefits - 0.71
Share Capital at the end of the year 2,633,224,000 2,633.22 1,974,918,000 1,974.92
Medical Leave Liability 20.61 21.49
Settlement Allowance 1.76 1.79 24.2 Allotment of Bonus Shares during the year and during preceding five years
Economic Rehabilitation Scheme 4.17 4.15 During the year, the Company has issued 65,83,06,000 equity shares of ₹ 10 each as fully paid-up bonus shares in the ratio of 1 (One)
Long Service Award 2.89 2.25 equity share for every 3 (Three) equity share outstanding on the record date i.e. 18th August 2022 by capitalising ₹ 658.31 crores out of the
Incentive 33.47 27.71 sum standing to the credit of ‘Securities Premium Account’. Except this, no Bonus Shares were issued during the preceding five years.
Others* 2.00 - 24.3 The Company has neither issued any equity shares pursuant to contract without payment being received in cash nor has there been
any buy-back of shares in the current year and five years immediately preceding the balance sheet date.
Sub-total (A) 95.07 83.61
(B) Others 24.4 Rights, Preferences and Restrictions attached to Equity shares
Expected Credit Loss on Letters of Comfort 15.87 20.90
The holders of the equity shares of the Company are entitled to receive dividends as and when declared by the Company and enjoy
Sub-total (B) 15.87 20.90 proportionate voting rights in case any resolution is put to vote. Further, the shareholders have all such rights, as may be available to
Total (A+B) 110.94 104.51 a shareholder of a listed public company, under the Companies Act, 2013 and rules made thereunder, Companies Act, 1956 (to the
* created in compliance of order of Ministry of Power regarding regularisation of earlier adopted Pay Scales 1997 in respect of below Board Level Executives at extent applicable), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Memorandum of Association and
par with other CPSEs. Articles of Association of the Company.
22.1 Movement of Expected Credit Loss provision on Letters of comfort 24.5 Shareholders holding more than 5% of fully paid-up equity shares as at Balance Sheet date:
(₹ in Crores) Name of the Shareholder As at 31.03.2023 As at 31.03.2022
Particulars As at 31.03.2023 As at 31.03.2022 No. of Shares Percentage No. of Shares Percentage
Opening balance 20.90 9.09 Power Finance Corporation Limited 1,385,993,662 52.63% 1,039,495,247 52.63%
Add: Created during the year 5.48 17.18 HDFC Trustee Company Ltd. A/c HDFC Hybrid Debt Fund * 158,992,122 8.05%
Less: Reversed/ Adjusted during the year (10.51) (5.37) * Shareholding is below 5% as at 31-03-2023
24.6 Details of equity shares held by the Holding Company, including the subsidiaries and associates
22.2 The Company has maximum credit risk exposure of ₹3,082.47 crores (previous year ₹4,068.95 crores) related to Letters of Comfort Name of the Company As at 31.03.2023 As at 31.03.2022
issued to the banks, as a financial guarantee on behalf of the borrowers.
No. of Shares Percentage No. of Shares Percentage
23 Other Non-financial Liabilities
(₹ in Crores) Power Finance Corporation Ltd. 1,385,993,662 52.63% 1,039,495,247 52.63%
Particulars As at 31.03.2023 As at 31.03.2022 24.7 Details of equity shares held by the promoters
(A) Sundry Liabilities Account (Funded Interest Capitalisation) 2.80 4.10
Name of the Promoter As at 31.03.2023 As at 31.03.2022
(B) Unbilled Liability towards Capital Account 48.38 26.96
No. of Shares Percentage % change No. of Shares Percentage % change
(C) Unamortised Fee on Undisbursed Loans 12.45 28.72 during the during the
year year
(D) Advance received from Govt. towards Govt. Schemes - 0.75
The President of India - - - - - -
(E) Statutory Dues 34.94 21.11
Power Finance Corporation Limited 1,385,993,662 52.63% - 1,039,495,247 52.63% -
Total (A to E) 98.57 81.64
200 201
25 Instruments entirely equity in nature (i) During the financial year 2022-23
(₹ in Crores) ₹196.82 crores from Reserve for Bad & Doubtful Debts under Section 36(1)(viia)(c) of the Income Tax Act, 1961 on account of
Particulars As at 31.03.2023 As at 31.03.2022 actual write-offs on loan assets and other recoverables.
Number Amount Number Amount (ii) During the financial year 2021-22
Fully paid up Perpetual Debts Instrument entirely equity in 5,584 558.40 5,584 558.40 ₹1,931.59 crores from Reserve for Bad & Doubtful Debts under Section 36(1)(viia)(c) of the Income Tax Act, 1961 on account of
nature of ₹ 10 lakhs each actual write-offs on loan assets and other recoverables.
Total 5,584 558.40 5,584 558.40
26.2 Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961
25.1 Reconciliation of the number of perpetual securities outstanding at the beginning and at the end of the year Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 is maintained by the Company in order to enable the Company to
(₹ in Crores) avail tax benefits. As per section 36(1)(viii) of the Income Tax Act, 1961, the company is eligible for deduction not exceeding 20% of
Particulars For the year ended For the year ended profit derived from long term finance activity, provided such amount is transferred and maintained in special reserve account.
31.03.2023 31.03.2022 Detail of Movement during the year:
Number Amount Number Amount (₹ in Crores)
Balance at the beginning of the year 5,584 558.40 5,584 558.40 Particulars For the year ended For the year ended
Increase/ (Decrease) during the year - - - - 31st March, 2023 31st March, 2022
Balance at the end of the year 5,584 558.40 5,584 558.40 Balance as at the begining of the year 22,302.93 19,222.23
25.2 Instrument holders holding more than 5% of Perpetual Debt Instruments entirely equity in nature as at Balance Sheet date: Add: Transferred from Retained Earnings 2,674.96 3,080.70
Less: Transferred to General Reserve - -
Name of the Shareholder As at 31.03.2023 As at 31.03.2022
Balance as at the end of the year 24,977.89 22,302.93
Number Percentage Number Percentage
HVPNL Employees Pension Fund Trust 665 11.91% 665 11.91% 26.3 Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961
HPGCL Employees Pension Fund Trust 500 8.95% 500 8.95% Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 is maintained by the Company in order to enable the
25.3 Company had issued Perpetual Debt Instruments of face value of ₹10 lakhs each, with no maturity and callable only at the option of Company to avail tax benefits. As per Section 36(1)(viia) of the Income Tax Act, 1961, the Company is eligible to avail deduction in
the Company after 10 years. The claims of the holders of the securities shall be (a) Superior to the claims of the holders of the equity respect of any provision/ reserve made for bad and doubtful debts, not exceeding five per cent of the total income as per Income Tax
shares issued by the Issuer; and (b) Subordinated to the claims of all other creditors of the Issuer. The instruments carry a step up Act. The reserve so maintained shall be primarily utilised for adjustment of actual bad debts or part thereof.
provision if not called after 10 years. The payment of Coupons may be cancelled or suspended at the discretion of the Company. The Detail of Movement during the year:
coupon of the securities is not cumulative except where the Issuer shall not be liable to pay coupon and may defer the payment of (₹ in Crores)
coupon, if (i) The capital to risk assets ratio (“CRAR”) of the Issuer is below the minimum regulatory requirement prescribed by RBI; or
Particulars For the year ended For the year ended
(ii) the impact of such payment results in CRAR of the Issuer falling below or remaining below the minimum regulatory requirement
31st March, 2023 31st March, 2022
prescribed by RBI.
Balance as at the begining of the year 196.82 2,128.41
As these securities are perpetual in nature and the Company does not have any redemption obligation and discretion on payment of
Add: Transferred from Retained Earnings - -
coupon, these have been classified as equity. Further, the periodic coupon payments are accordingly adjusted with retained earnings.
Less: Transferred to General Reserve (196.82) (1,931.59)
26 Other Equity
Balance as at the end of the year - 196.82
(₹ in Crores)
Particulars As at 31.03.2023 As at 31.03.2022 26.4 Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934
(A) Other Reserves The Company is creating the Reserve Fund as required u/s 45IC of Reserve Bank of India Act, 1934, wherein at least 20% of net profit is
(i) Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 24,977.89 22,302.93 required to be transferred before the declaration of dividend. No appropriation is allowed to be made from the reserve fund except for
(ii) Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 - 196.82 the purpose as may be specified by the Reserve Bank of India from time to time and further, any such appropriation is also required to
be reported to the Reserve Bank of India within 21 days from the date of such withdrawal.
(iii) Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934 8,025.15 5,814.00
(iv) Securities Premium 1,577.53 2,236.54 Detail of Movement during the year:
(₹ in Crores)
(v) Foreign Currency Monetary Item Translation Difference Account (790.44) (555.29)
(vi) General Reserve 11,978.44 11,781.62 Particulars For the year ended For the year ended
(B) Retained Earnings 9,930.77 6,915.38
Balance as at the begining of the year 5,814.00 3,804.00
(C) Other Comprehensive Income (OCI)
Add: Transferred from Retained Earnings 2,211.15 2,010.00
- Equity Instruments through Other Comprehensive Income (101.47) (37.98)
- Effective Portion of Cash Flow Hedges 600.05 194.21
- Cost of Hedging reserve (1,709.87) (395.95) Balance as at the end of the year 8,025.15 5,814.00
Total - Other Equity 54,488.05 48,452.28 26.5 Securities Premium
Additions and deductions to the components of ‘Other Equity’ has been disclosed in ‘Statement of Changes in Equity’.
Securities Premium represents the premium received by the Company on issue of shares and debt securities. It is utilised in accordance
26.1 Drawdown/ Transfer from Reserves: Pursuant to regulatory guidelines and utilisation of reserves created for specific purposes, the with the provisions of the Companies Act, 2013.
Company has transferred the following amounts from different reserves to General Reserve:
202 203
Detail of Movement during the year: 26.9 Effective Portion of Cash Flow Hedges
(₹ in Crores)
The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest rate risk associated
on borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross
currency swaps, foreign currency option contracts and interest rate swaps. To the extent the derivative contracts designated under
Balance as at the begining of the year 2,236.54 2,236.54 the hedge accounting are effective hedges, the change in fair value of the hedging instrument is recognised in ‘Effective Portion of
Add: Transferred from Retained Earnings - - Cash Flow Hedges’. Amounts recognised in such reserve are reclassified to the Statement of Profit or Loss when the hedged item
Less: Transferred to General Reserve - - affects profit or loss.
Less: Utilised for Bonus Issue of Equity Shares (658.30) - Detail of Movement during the year:
Less: Expenses incurred on Bonus Issue of Equity Shares (0.71) - (₹ in Crores)
Balance as at the end of the year 1,577.53 2,236.54 Particulars For the year ended For the year ended
26.6 Foreign Currency Monetary Item Translation Difference Account
Balance as at the begining of the year 194.21 (165.61)
The company had opted towards an irrevocable option for amortising the foreign exchange fluctuation loss/gain on the long term
foreign currency monetary items over the balance period of such items in accordance with Para 46A of the erstwhile applicable Add: Recognition through Other Comprehensive Income (net of taxes) 405.84 359.82
Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’. The Company opted to continue the policy of such Balance as at the end of the year 600.05 194.21
amortisation as per the previous GAAP in respect of the exchange differences arising from translation of long-term foreign currency
monetary items as on 31st March 2018 in line with the provisions of Ind-AS. The balance in this account represents the unamortised 26.10 Cost of Hedging Reserve
gain/ (loss) which will be amortised over the balance period of the eligible long term foreign currency monetary liabilities.
The Company designates the intrinsic value of foreign currency option contracts as hedging instruments in ‘Cash Flow Hedge’
Detail of Movement during the year: relationships. The changes in fair value of the time value of an option are recognised in OCI and amortised to the Statement of Profit
(₹ in Crores) and Loss on a rational basis.
Particulars For the year ended For the year ended Detail of Movement during the year:
Balance as at the begining of the year (555.29) (573.16) (₹ in Crores)
Add: Foreign Currency Translation Gain/ Loss (-) on long term monetary items during (487.03) (216.94) Particulars For the year ended For the year ended
the year 31st March, 2023 31st March, 2022
Less: Amortisation during the year 251.88 234.81 Balance as at the begining of the year (395.95) 41.45
Balance as at the end of the year (790.44) (555.29)
Add: Recognition through Other Comprehensive Income (net of taxes) (1,313.92) (437.40)
26.7 General Reserve Balance as at the end of the year (1,709.87) (395.95)
General Reserve includes the amounts appropriated from the profits of the Company and also amounts transferred from Statutory 26.11 Detail of Movement in Retained Earnings during the year:
Reserves.
(₹ in Crores)
Detail of Movement during the year:
(₹ in Crores)
Balance as at the begining of the year 11,781.62 9,850.03 Add: Profit for the year 11,054.64 10,045.92
Add: Transferred from Retained Earnings - - Add: Remeasurement of Defined Benefit Plans (net of taxes) (4.48) (6.23)
Add: Transferred from Reserve for Bad & Doubtful Debts u/s 36(1) (viia) of the 196.82 1,931.59 Less: Transferred to General Reserve - -
Income Tax Act, 1961 Less: Transferred to Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 (2,674.96) (3,080.70)
Balance as at the end of the year 11,978.44 11,781.62 Less: Transferred to Reserve for Bad and doubtful debts u/s 36(1)(viia) of the - -
26.8 Equity Instruments through Other Comprehensive Income (OCI) Income Tax Act, 1961
Less: Transferred to Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934 (2,211.15) (2,010.00)
The Company has elected to recognise changes in the fair value of certain investments in equity securities through other comprehensive
income. These changes are accumulated within the OCI reserve within equity. The Company transfers amounts from this reserve to Less: Transferred to Debenture Redemption Reserve - -
retained earnings when the related equity securities are derecognised. Less: Transferred to Impairment Reserve - -
Detail of Movement during the year: Add: Reclassification of gain/ (loss) on sale/ extinguishment of FVOCI equity 5.01 86.79
(₹ in Crores) instrument
Particulars For the year ended For the year ended Less: Coupon Payment on Instrument Entirely Equity in Nature (Perpetual Debt (33.30) (34.12)
31st March, 2023 31st March, 2022 Instruments) (Net of Taxes)
Balance as at the begining of the year (37.98) 24.07 Less: Issue Expenses on Instrument Entirely Equity in Nature (Perpetual Debt - -
Add: Recognition through Other Comprehensive Income (net of taxes) (58.48) 24.74 Instruments) (Net of Taxes)
Add: Reclassification of gain/ (loss) on sale/ extinguishment of FVOCI equity (5.01) (86.79) Less: Dividend paid during the year (3,120.37) (2,411.37)
instrument (net of taxes) Less: Dividend Distribution Tax - -
Balance as at the end of the year (101.47) (37.98) Balance as at the end of the year 9,930.77 6,915.38
204 205
26.12 Dividend declared/ proposed by the Company for Equity Shares of ₹ 10/- each 29 Fees and Commission Income
Particulars For the year ended 31 March, 2023
st
For the year ended 31 March, 2022 st (₹ in Crores)
Dividend per Equity Dividend Amount Dividend per Equity Dividend Amount Particulars Year ended 31.03.2023 Year ended 31.03.2022
Share Share
(₹) (₹ in Crores) (₹) (₹ in Crores) Fees based Income 117.80 92.22
No. of Equity Share at the end of the year 2,63,32,24,000 1,97,49,18,000 Prepayment Premium 47.16 465.37
Interim Dividend 8.25 2,172.41 10.50 2,073.66
Fee for Implementation of Govt. Schemes 122.21 15.23
Final/ Proposed Dividend - - 4.80 947.96
Total Dividend 8.25 2,172.41 15.30 3,021.62 Total - Fees and Commission Income 287.17 572.82
As per the requirements of Ind-AS 10 ‘Events after the Reporting Period’, the Company is not required to provide for the dividend proposed by the Board of Directors after
the end of the financial year. Such appropriation is made after the approval in the Annual General Meeting (AGM) in case of final dividend. 30 Other Income
(₹ in Crores)
27 Interest Income
(₹ in Crores)
Gain on ceasation of significant influence in Joint Venture - 29.01
On Financial On Financial On Financial On Financial On Financial On Financial Net gain/ (loss) on disposal of assets classified as held for sale 4.08 30.19
Assets Assets Assets Assets Assets Assets Rental Income 17.16 16.32
measured measured at measured measured measured at measured Liabilities/Provision Written Back - 8.93
at Fair Value Amortised at Fair Value at Fair Value Amortised at Fair Value Fees from Training Courses 7.73 6.57
through OCI Cost through through OCI Cost through
Interest from Income Tax Refund - 0.83
Profit or Loss Profit or Loss
Miscellaneous Income 15.70 6.11
(A) Interest on Loan Assets
(i) Long term financing - 37,679.56 - - 37,613.68 - Total - Other Income 44.67 97.96
(ii) Short term financing - 680.35 - - 197.16 - 31 Finance Costs
Sub-total (A) - 38,359.91 - - 37,810.84 -
(B) Interest Income from Investments Finance Costs have been incurred on financial liabilities measured at amortised cost.
(₹ in Crores)
(i) Interest from Long Term - 152.68 31.69 - 108.06 27.15
Investments Particulars Year ended 31.03.2023 Year ended 31.03.2022
Sub-total (B) - 152.68 31.69 - 108.06 27.15 (i) Interest on Borrowings
(C) Interest on Deposits with Banks - Loans from Govt. of India (NSSF) 822.50 822.50
(i) Interest from Deposits - 111.28 - - 84.66 - - Loans from Banks/ Financial Institutions 3,934.76 2,788.79
- External Commercial Borrowings 1,881.41 577.12
Sub-total (C) - 111.28 - - 84.66 -
Sub-Total (i) 6,638.67 4,188.41
(D) Other Interest Income
(ii) Interest on Debt Securities
(i) Interest on Delayed Payments by - 176.76 - - 154.54 - - Domestic Debt Securities 13,316.68 14,763.99
Borrowers
- Foreign Currency Debt Securities 1,442.43 1,294.73
(ii) Interest from Staff Advances - 3.65 - - 0.97 -
- Commercial Paper - 14.76
(iii) Interest on Mobilisation Advance - 0.27 - - 0.24 -
Sub-Total (ii) 14,759.11 16,073.48
Sub-total (D) - 180.68 - - 155.75 - (iii) Interest on Subordinated Liabilities
Total - Interest Income (A to D) - 38,804.55 31.69 - 38,159.31 27.15 - Subordinate Bonds 551.65 523.30
Sub-Total (iii) 551.65 523.30
28 Dividend Income
(₹ in Crores) (iv) Other Interest Expense
- Swap Premium 1,784.82 1,269.34
- Interest on liability towards employee benefits 3.44 3.48
- Dividend from Subsidiary Companies 27.45 22.43
Sub-Total (iv) 1,788.26 1,272.82
- Dividend from Other Investments 11.89 4.21 Total - Finance Costs 23,737.69 22,058.01
Total - Dividend Income 39.34 26.64 Less: Finance Costs Capitalised (0.03) (5.10)
Total - Finance Costs (Net) 23,737.66 22,052.91
28.1 Details of dividend recognised on Other Investments :
(₹ in Crores) 32 Net translation/ transaction exchange loss/ (gain)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 (₹ in Crores)
Dividend on FVOCI Equity Investments Particulars Year ended 31.03.2023 Year ended 31.03.2022
Net translation/ transaction exchange loss/ (gain) 1,114.04 799.05
- Investments held at the end of the year 11.81 3.20
Total 1,114.04 799.05
- Investments derecognized during the year 0.08 1.01
The figures above include amortisation of net translation/ transaction exchange loss/ (gain) on Long Term Foreign Currency Monetary Items recognised in the financial
Total 11.89 4.21 statements before 1st April 2018 amounting to ₹ 251.88 crores (Previous year ₹ 234.81 crores).
206 207
32.1 The foreign currency monetary items are translated at FBIL (Financial Benchmark India Private Ltd) reference rates prevailing at the 37 Depreciation and amortization
end of each reporting period or where the FBIL reference rate is not available for any currency, the closing rate for the same date (₹ in Crores)
quoted on Bloomberg. The respective rates as on the reporting date are as below: Particulars Year ended 31.03.2023 Year ended 31.03.2022
- Depreciation on Property, Plant & Equipment 21.45 15.09
Exchange Rates USD/INR JPY/INR Euro/INR SGD/INR
- Amortization on Intangible Assets 2.64 2.87
As at 31st March 2023 82.2169 0.6180 89.6076 61.8074
Total 24.09 17.96
As at 31st March 2022 75.8071 0.6223 84.6599 55.9438
38 Corporate Social Responsibility Expenses
33 Fees and commission expense (₹ in Crores)
(₹ in Crores)
- Direct Expenditure 197.01 165.20
(i) Guarantee Fee 2.92 4.29
- Overheads 5.64 5.47
(ii) Listing and Trusteeship Fee 0.05 0.84
(iii) Agency Fees 1.76 2.01 Total 202.65 170.67
(iv) Credit Rating Expenses 3.55 6.69 38.1 Ministry of Corporate Affairs (MCA) has prescribed Companies (Corporate Social Responsibility Policy) Rules, 2014, amended from time to
(v) Other Finance Charges 8.01 2.90 time. These rules require that any unspent CSR amount, other than for any ongoing project, must be transferred to a Fund specified in
Schedule VII, within a period of six months of the expiry of the financial year. In case such unspent amount pertains to any ongoing project,
Total (i to v) 16.29 16.73
it must be transferred to unspent CSR Account by 30th April of the next year. However, if such amount is not utilised within three financial
34 Net Gain/ (loss) on Fair Value Changes years, it is required to be transferred to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the
(₹ in Crores) third financial year. The Company also carries the right to set-off any amount spent in excess of the requirement under the Act within three
succeeding financial years against the amount to be spent. Further, companies undertaking impact assessment may book the expenditure
Particulars Year ended 31.03.2023 Year ended 31.03.2022 towards CSR for that financial year, which shall not exceed two percent of the total CSR expenditure or fifty lakh rupees, whichever is higher.
(A) Net gain/ (loss) on financial instruments at Fair Value through profit or loss
38.2 Details of Gross Amount required to be spent by the company:
(i) On trading Portfolio - -
(ii) Others (a) Gross amount required to be spent by the company during the year is ₹ 202.65 crores (previous year ₹ 170.67 crores)
- Changes in fair value of Derivatives 69.21 351.36 (b) Amount approved by the Board to be spent during the year is ₹ 202.65 crores (previous year ₹ 170.67 crores)
- Changes in fair value of Long Term Investments (25.45) (12.78) (c) Refer Note no. 53 for related party transactions related to CSR.
- Changes in fair value of Short-term MF investments 1.55 7.99 (d) Amount required to be spent on CSR activities as per Section 135 (5) of the Companies Act, 2013:
Sub-total (ii) 45.31 346.57 (₹ in Crores)
Total (A) 45.31 346.57 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Breakup of Fair Value Changes (A) Opening Balance - Excess amount spent (0.40) (3.46)
- Realised 336.35 365.03 (B) Amount required to be spent during the year 202.65 170.67
- Unrealised (291.04) (18.46) (C) Amount spent during the year* 209.95 167.61
Total Net Gain/ (loss) on Fair Value Changes 45.31 346.57 (D) Closing Balance - Excess amount spent** (A+B-C) (7.70) (0.40)
Fair value changes in this schedule are other than those arising on account of accrued interest income/ expense and represents changes in fair value of derivatives * Excludes amount spent on CSR activities from interest earned on temporarily parked funds by REC Foundation (implementing agency) of ₹ 0.98 crores
designated as economic hedges not designated under hedge accounting and ineffective hedge (previous year Nil)
** eligible to be set-off in the next three succeeding financial years
35 Impairment on financial instruments
(₹ in Crores) 38.3 Amount spent during the year:
(₹ in Crores)
On financial instruments On financial On financial instruments On financial
measured at FVOCI instruments measured measured at FVOCI instruments measured In Cash Yet to be Total In Cash Yet to be Total
at Amortised Cost at Amortised Cost paid paid
(i) - Loans * - 105.14 - 3434.36 (i) Construction/ acquisition of any asset - - - - - -
(ii) - Investments - - - 28.72 (ii) On purpose other than (i) above
(iii) - Others - 9.77 - 10.23 Health/Sanitation / Waste Management / Drinking water 73.59 - 73.59 54.75 - 54.75
Total (i+ii) - 114.91 - 3473.31 Education/ Vocational/ Skill Development 23.12 - 23.12 16.17 - 16.17
* includes ₹ -5.03 crores (Previous year ₹ 11.81 crores) towards impairment allowance on Letter of Comfort. Environmental Sustainability (Solar Applications/ 23.79 - 23.79 8.06 - 8.06
Afforestation/ Energy efficient LED lighting)
36 Employee Benefits Expense Sports 30.50 - 30.50 15.00 - 15.00
(₹ in Crores)
Contribution to PM CARES Fund 50.00 - 50.00 50.00 - 50.00
Provision of food/ration to migrant workers due to - - - 0.26 - 0.26
- Salaries and Allowances* 136.33 115.03 COVID- 19 and Providing Cold Chain equipment for
- Contribution to Provident and Other Funds 8.20 18.73 COVID-19 vaccination
- Rent towards Residential Accomodation for Employees 5.31 3.77 Others 3.31 - 3.31 17.90 - 17.90
- Staff Welfare Expenses 31.79 22.08 Impact Assessment 0.34 - 0.34 0.23 - 0.23
Total 181.63 159.61 Administrative overheads including training etc. 5.30 - 5.30 5.24 - 5.24
* includes ₹20.54 crores (previous year Nil) incurred in compliance of order of Ministry of Power regarding regularisation of earlier adopted Pay Scales 1997 in respect of Total (i+ii) 209.95 - 209.95 167.61 - 167.61
below Board Level Executives at par with other CPSEs.
208 209
39 Other Expenses 41 Earnings per Share
(₹ in Crores)
Numerator
- Travelling and Conveyance 15.61 10.07 Profit for the year from continuing operations as per Statement of 11,021.34 10,011.80
- Publicity & Promotion Expenses 9.87 1.66 Profit and Loss (₹ in Crores)*
- Repairs and Maintenance 21.07 21.62 Profit for the year from discontinued operations as per Statement - -
- Rent, taxes and energy costs 5.80 7.60 of Profit and Loss (₹ in Crores)*
- Insurance Charges 0.15 0.09 Profit for the year from continuing and discontinued operations as 11,021.34 10,011.80
- Communication costs 2.33 2.86 per Statement of Profit and Loss (₹ in Crores)*
- Printing & stationery 1.11 0.79 Denominator
- Director's sitting fees 0.42 0.21 Weighted average Number of equity shares** 2,633,224,000 2,633,224,000
- Auditors' fees and expenses 1.55 1.53 Basic & Diluted Earnings per Share (in ₹ for an equity share of ₹ 10 41.85 38.02
- Legal & Professional Charges 13.62 9.29 each) (for continuing operations)
- Net Loss on Disposal of Property, Plant & Equipment 6.64 0.97 Basic & Diluted Earnings per Share (in ₹ for an equity share of ₹ 10 - -
- Training And Conference Expense 10.80 7.65 each) (for discontinued operations)
- Govt. Scheme Monitoring Expenses 9.60 30.94 Basic & Diluted Earnings per Share (in ₹ for an equity share of ₹ 10 41.85 38.02
- Other Expenditure 24.12 20.03 each) (for continuing and discontinued operations)
Total 122.69 115.31 * The profit denotes Proft after Tax less coupon expenses (net of taxes) of ₹33.30 crores (previous year ₹34.12 crores) on Perpetual Debt Instruments entrirely
equity in nature
39.1 Disclosure in respect of Auditors’ fees and expenses
** During the year, the Company has issued 65,83,06,000 equity shares of ₹10 each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every
(₹ in Crores) 3 (Three) equity share outstanding on the record date i.e. 18th August 2022. Accordingly, as required by Ind AS-33, Earnings per share, the EPS of current and
Particulars Year ended 31.03.2023 Year ended 31.03.2022 previous year have been restated.
Fees paid to statutory auditors : 42 Contingent Liabilities and Commitments :
- for audit fees 0.58 0.58
- for taxation matters 0.15 0.15 42.1 Contingent Liabilities not provided for in respect of:
- for company law matters/ limited review fees 0.35 0.33 (₹ in Crores)
- for other services 0.25 0.32 Particulars As at 31.03.2023 As at 31.03.2022
- for reimbursement of expenses 0.11 0.03
(A) Claims against the Company not acknowledged as debts 0.78 0.78
Sub-total 1.44 1.41
(B) Taxation Demands
Non-recoverable tax credit in respect of fees paid to auditors 0.11 0.12
(i) - Demands raised by the Income Tax Department 197.78 152.77
Total - Auditor’s fees and expenses 1.55 1.53
(ii) - Demands against appeals filed by the Income Tax 0.90 0.90
40 Tax Expense Department against the relief allowed to the Company
(₹ in Crores) (iii) - Demands raised in respect of GST 17.89 17.89
(C) Guarantees 7.50 -
- Current tax expense 2,668.58 3,051.33
(D) Others
- Current tax expense/ (benefit) pertaining to earlier years (147.29) (3.96)
Sub-total - Current Tax 2,521.29 3,047.37 (i) - Arbitration Proceedings through Project Management 315.30 -
Consultant (PMC) (counter claim of ₹ 33.23 crores)
- Deferred tax expense/ (credit) 162.84 (668.39)
(ii) - Letters of Comfort 3,082.47 4,068.95
Total 2,684.13 2,378.98 The amount referred to in ‘A’ above are in respect of cases pending in various courts and is dependent upon the verdict of the court.
The amount referred to in B(i) above are against the various demands raised by Income Tax Department. The company is contesting these demands and the
40.1 Reconciliation of Effective Tax Rate management believes that its position will likely be upheld in the appellate process.
The reconciliation of estimated income tax expense at statutory income tax rate to income tax expense reported in statement of profit and The amount referred to in B(ii) above are against the appeal filed by Income Tax Department in High Court against the relief allowed to the Company at ITAT level.
loss is as follows: The amount referred to in B(iii) above is against the GST refund appeal filed by REC.
(₹ in Crores) The amount referred to in C above is against the Bank Guarantee submitted for participation in bidding process of NTPC Green Energy Limited (subsidiary of NTPC Ltd.)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 The amount referred to in D(i) above represent arbitration matters between the contractor and PMC appointed by the company. The claim is being contested
Profit before Tax 13,738.77 12,424.90 by the PMC and company believes that its position will likely be upheld in the arbitration process.
Statutory income tax rate 25.168% 25.168%
42.2 Commitments not provided for in respect of:
Expected income tax expense 3,457.77 3,127.10
Tax effect of income tax adjustments: Particulars As at 31.03.2023 As at 31.03.2022
Benefit of deduction u/s 36(1)(viii) of Income Tax Act, 1961 (673.23) (775.36) - Contracts remaining to be executed on capital account
Non-allowability of CSR expenses & other adjustments 51.00 42.95
- Towards Property, Plant & Equipment 124.73 129.13
Other non-deductible tax expenses 5.78 (1.07)
Non Taxable Income (9.91) (6.70) - Towards Intangible Assets - -
Tax Expense Earlier Years (147.29) (3.96) - Other Commitments
Impact of income taxable at different rates - (3.98) - CSR Commitments 252.44 399.13
Tax expense 2,684.13 2,378.98
210 211
43 Details of Registration/ License/ authorisation obtained from financial sector regulators: 45 Capital management
Particulars Regulator Name Registration Details The Company manages its capital to ensure that it will continue as going concern while maximizing the return to stakeholders. The
capital structure of the Company consists of the equity and the long-term borrowings made by the Company.
(i) Corporate Identification Number Ministry of Corporate Affairs L40101DL1969GOI005095
Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding
(ii) Registration Number Reserve Bank of India 14.000011
excessive leverage. The Company manages the capital structure and raises funds through the suitable instruments, in light of the
(iii) Legal Entity Identifier (LEI) Code Global Legal Entity Identifier Foundation (GLEIF) 335800B4YRYWAMIJZ374 dynamic business environment and liquidity position within the sector. Further, with regard to capital restructuring, the Company is
(iv) Registration Number Central Registry of Securitisation Asset Reconstruction L0012 also guided, inter alia, by guidelines on “Capital Restructuring of Central Public Sector Enterprises” issued by Department of Investment
and Security Interest of India (CERSAI) and Public Asset Management (DIPAM), Ministry of Finance, Department of Public Enterprises in respect of issue of bonus shares,
dividend distribution, buy back of equity shares etc. The Company has complied with all externally imposed capital requirements.
44 Implementation of Govt. Schemes
The debt-equity ratio of the Company is as below:
44.1 Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) (₹ in Crores)
Government of India launched a scheme “Pradhan Mantri Sahaj Bijli Har Ghar Yojana” - Saubhagya to achieve universal household Particulars As at 31.03.2023 As at 31.03.2022
electrification in the country during Oct 2017. The scheme envisaged to provide last mile connectivity and electricity connections to
Net debt 374,577.42 326,717.92
all remaining un-electrified households in rural areas and poor households in urban areas. The capital outlay of Saubhagya Scheme
was ₹16,320 Crore including Gross Budgetary Support of ₹12,320 Crore during the entire implementation period. Ministry of Power Net Worth 57,679.67 50,985.60
designated REC as the Nodal agency for operationalization of Saubhagya Scheme. The scheme has been successfully completed and Debt-equity ratio 6.49 6.41
closed in its sunset year FY 2021-22 i.e. 31.03.2022.
Net debt represents principal outstanding less cash and cash equivalents available.
44.2 Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
Dividend Distribution Policy
Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), the flagship scheme of Government of India covering all aspects of rural power
distribution was launched in Nov 2014. Under the scheme 60% of the project cost (85% for special States) is provided as grant by BoD monitors the dividend pay-out to the shareholders of the Company. Dividend distribution policy of the Company focuses on
Government of India and additional grant up to 15% (5% for special States) on achievement of prescribed milestones. DDUGJY various factors including but not limited to the present & future capital requirements, profits earned during the financial year, Capital
facilitates towards achievement of ‘24x7 Power for All’ in the country through the following project components: to Risk-weighted Assets Ratio (CRAR), cost of raising funds from alternate sources, cash flow position and applicable taxes if any and
net worth of the Company, subject to the applicable circulars/ guidelines issued by RBI, DIPAM etc. as applicable from time to time.
(i) Separation of agriculture and non-agriculture feeders facilitating adequate power supply to agriculture & continuous power
supply to non-agricultural consumers in the rural areas; As per the extant guidelines issued by DIPAM, Govt. of India, Company is required to pay a minimum annual dividend of 30% of PAT or
5% of the net-worth, whichever is higher. Though the Company endeavors to declare the dividend as per these guidelines, the Company
(ii) Strengthening and augmentation of sub-transmission & distribution infrastructure in rural areas, including metering of may propose lower dividend after analysis of various financial parameters, cash flow position and funds required for future growth.
distribution transformers/ feeders/ consumers;
Other Policies
(iii) Micro-grid and Off-grid distribution network;
The Company has also adopted various policies for the management of the Company which inter-alia include Comprehensive Risk
(iv) Rural Electrification component under the RGGVY 12th and 13th plans, subsumed to DDUGJY. Management Policy, Whistle Blower Policy, Code for Prevention of Insider Trading in REC Equity Shares/Securities, Policy for prevention
The scheme had estimated outlay of ₹75,893 Crore including budgetary support of ₹63,027 Crore from Government of India during of Fraud, The Code of Business Conduct and Ethics for Board Members and Senior Management, Fair Practices Code, etc.
the entire implementation period. Additional Infra under DDUGJY was sanctioned with a total outlay of ₹7,069 Cr including budgetary 46 Capital to Risk-weighted Assets Ratio
support of ₹5,302 Cr. The scheme has been successfully completed and closed in its sunset year FY 2021-22 i.e. 31.03.2022.
The Company is complying with the Capital Adequacy requirements as per the master directions/ circulars/ guidelines prescribed by
44.3 National Electricity Fund (NEF) the RBI, amended from time to time. Being an NBFC and Infrastructure Finance Company (NBFC-IFC), REC is required to maintain a
Capital Adequacy Ratio or Capital to Risk Weighted Assets Ratio (CRAR) of 15% (with a minimum Tier I Capital of 10%), computed by
The National Electricity Fund (NEF), an interest subsidy scheme, has become operational since FY 2012-13. The scheme has been
introduced by the Government of India to promote capital investment in the distribution sector. The scheme provides interest subsidy dividing company’s Tier-I and Tier-II capital by Risk Weighted Assets.
linked with reform measures, on the loans taken by public and private distribution power utilities for various capital works in the Particulars As at 31-03-2023 As at 31-03-2022 %
Distribution sector. NEF would provide interest subsidy aggregating up to ₹8,466 Crore (including interest subsidy to the borrowers, Variance
Service Charges to the Nodal Agency, payments to Independent Evaluators and other incidental expenses) spread over 14 years
Numerator* Denominator* % Numerator* Denominator* %
for loan disbursement against projects approved during 2012-13 and 2013-14. REC has been nominated as the Nodal Agency for
operationalization of NEF scheme across the country. (₹ in Crores) (₹ in Crores) (₹ in Crores) (₹ in Crores)
(i) CRAR 63,240.41 245,300.73 25.78% 57,937.08 245,436.54 23.61% 9.21%
44.4 Revamped Distribution Sector Scheme (RDSS) (ii) CRAR - Tier I Capital 56,023.45 245,300.73 22.84% 48,052.65 245,436.54 19.58% 16.65%
Government of India has approved the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational (iii) CRAR - Tier II Capital** 7,216.96 245,300.73 2.94% 9,884.43 245,436.54 4.03% -26.95%
efficiencies and financial sustainability by providing result-linked financial assistance to them so as to strengthen supply infrastructure
based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The scheme has an outlay of ₹ 3,03,758 Crore The amount of Perpetual Debt Instrument of the Tier-I capital is 1.00% (previous year 1.16%)
over 5 years i.e. FY 2021-22 to FY 2025-26 including an estimated Government Budgetary Support (GBS) of ₹ 97,631 Crore. * Numerator being Tier-I & Tier-II capital majorily consists of Equity (Refer Note no. 24, 25 and 26) and Denominator being Risk Weighted
The main objective of the scheme includes : Assets majorily represents the weighted sum of company’s credit exposure(s) such as Loans (Refer Note no. 9) and Investments (Refer
Note no. 10), calculated in line with circular(s) issued by RBI in this regard, from time to time.
(i) Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
** Variance in CRAR Tier II capital is on account Subordinated Tier-II Bond due for redemption within one year and thus, excluded from
(ii) Reduction of ACS-ARR gap to zero by 2024-25.
the Tier-II capital in terms of RBI guidelines
(iii) Improvement in the quality, reliability and affordability of power supply to consumers through a financially sustainable and
Details of Tier II capital and perpetual debt instruments raised during the year are as under:
operationally efficient distribution sector.
(₹ in Crores)
Components of the scheme are : Particulars Year ended 31.03.2023 Year ended 31.03.2022
Part A – Financial support for Prepaid Smart Metering & System Metering and up-gradation of the Distribution Infrastructure. Amount of Subordinated Debt raised as Tier-II capital - -
Part B – Training & Capacity Building and other Enabling & Supporting Activities. Amount raised by issue of Perpetual Debt Instruments - -
212 213
47 Financial Risk Management Cash and Cash Equivalents and Bank Balances
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company risk management Credit risk related to cash and cash equivalents and bank deposits is managed by parking funds in investment grade rated instruments
framework. The Company has formulated a comprehensive Risk Management Policy, which covers, inter-alia, Credit Risk, Operational and highly rated banks and also diversifying the deposit base by investing in different instruments/ banks across the country.
Risk and Market Risk of the organization. The Company’s risk management policies are guided by well-defined systems & processes
Loans
appropriate for various risk categories, independent risk oversight and periodic monitoring. A Board Level Risk Management
Committee (RMC) has also been constituted under the chairmanship of CMD, whose main function is to identify and monitor various Credit risk related to borrowers are mitigated through adequate security arrangements for the loans by way of hypothecation of future
risks of the organization and to suggest actions for mitigation of the same. project loan assets, receivables, inventories or any other assets, Govt. Guarantees, Corporate guarantees etc. and additionally Collaterals
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the wherever required. The Company closely monitors the credit-worthiness of the promoters through well-defined entity appraisal guidelines
financial statements. that are configured from systematic institutional and project appraisal process analysis to assess the credit risk and define credit limits
of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include a detailed appraisal methodology,
Risk Exposure arising from Measurement Management identification of risks and suitable structuring and credit risk mitigation measures in form of pre-disbursement conditions.
Credit risk Cash and Cash Equivalents, Bank Balances Ageing analysis Bank deposits, liquid Other Financial Assets
(other than Cash and Cash Equivalents), funds, diversification of
Loans, Financial Assets, Investment in G-Sec, asset base, credit limits Other financial assets measured at amortized cost includes loans and advances to employees and subsidiary, security deposits and
State Development Loans, Debt Securities and collateral. other amounts recoverable, including from Govt. of India. Credit risk related to these other financial assets is managed by monitoring
and Preference Shares the recoverability of such amounts continuously.
Liquidity risk Borrowings, Debt Securities, Subordinated Rolling cash flow forecasts Availability of committed
Liabilities and Other Financial Liabilities credit lines and borrowing Investment in G-Sec, State Development loans and Debt Securities
facilities Credit risk related to investment in High Quality Liquid Assets (HQLAs) is managed by investment in Govt. Securities, State Development
Market risk - Currency risk Recognised Financial Assets and Liabilities Cash flow forecasting Derivative contracts Loans and PSU Bonds with sound financial health and also diversifying the investment portfolio in different maturity/sector and
not denominated in Indian Rupee (INR) monitoring the financial health on regular basis.
Market risk - interest rate risk Borrowings, Debt Securities and Subordinated Sensitivity analysis Derivative contracts
Liabilities at variable interest rates Investment in Securities issued by Borrower entities at the time of Loan Settlement/ Resolution
Market risk - equity price risk Investments in Quoted Equity Securities Sensitivity analysis Diversification of portfolio, REC received various securities issued by borrower entities as a part of the settlement/ resolution plan duly approved by the Company
with focus on strategic
or the Consortium of Lenders, as applicable and in case of resolutions under Insolvency & Bankruptcy Code 2016, approved by
investments
Committee of Creditors and National Company Law Tribunal (NCLT) of the competent jurisdiction. Credit risk related to these securities
In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on is managed by monitoring the recoverability of such amounts continuously.
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
47.1.2 Expected Credit Losses (ECL) for financial assets other than loans
For managing these risks, the Company has put in place an integrated enterprise-wide risk management mechanism to ensure that
these risks are monitored carefully and managed efficiently. Pursuant to RBI notification DNBR (PD) CC.NO/.099/03.10.001/2018-19, to Company provides for expected credit losses on financial assets other than loans by assessing individual financial instruments for
augment risk management practices in the Company, the Board has also appointed a Chief Risk Officer (CRO) who is involved in the expectation of any credit losses:
process of identification, measurement and mitigation of risks. The risk management approach i.e. Company’s objectives, policies and
processes for measuring and managing each of above risk is set out in the subsequent paragraphs. - For cash and cash equivalents and bank balances (other than cash and cash equivalents) - Since the Company deals with
only high-rated banks and financial institutions for banking operations and the liquid funds category in the debt funds with
47.1 Credit Risk
consistent track record for short term investment of surplus funds, credit risk in respect of cash and cash equivalents, other
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. bank balances and bank deposits is evaluated as very low.
The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, bank balances (other than cash and
cash equivalents), investments, loan assets, trade receivables and other financial assets measured at amortised cost. The Company - For Investment in G-Sec, State Development loans and Debt Securities - Considering that the investments are in debt
continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. securities including Governemnet Securities/ minimum investment grade rated Government Companies in High Quality
Liquid Assets (HQLAs), credit risk is considered low.
47.1.1 Financial assets that expose the entity to credit risk
(₹ in Crores) - For Investment in Securities issued by Borrower entities at the time of Loan Settlement/ Resolution - Credit risk is
evaluated on the basis of recoverability of such securities. Wherever medium or high risk evaluated on such investments,
suitable ECL allowance is provided.
(i) Low credit risk on financial reporting date
Cash and cash equivalents 39.00 126.40 - For other financial assets - Credit risk is evaluated based on Company’s knowledge of the credit worthiness of those parties
Bank balances other than cash and cash equivalents 1,948.34 2,295.30 and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime expected
credit losses upon significant increase in credit risk.
Loans * 412,304.47 3,35,876.99
Investments ** 2,728.86 1,840.09 Details of expected credit loss for financial assets other than loans is disclosed as follows:
Other financial assets 24,400.28 24,396.94 (₹ in Crores)
(ii) Moderate credit risk Particulars As at 31.03.2023 As at 31.03.2022
Loans * 10,913.58 36,424.23 Gross Carrying ECL Net Carrying Gross Carrying ECL Net Carrying
(iii) High credit risk Amount amount Amount amount
Loans * 14,892.08 17,159.89 Cash and cash equivalents 39.00 - 39.00 126.40 - 126.40
Investments in Preference Share *** 28.72 28.72
Bank balances (other than cash 1,948.34 - 1,948.34 2,295.30 - 2,295.30
Other financial assets 94.72 90.68 and cash equivalents)
* Represents the principal outstanding (along with undisbursed amount towards Letters of Comfort) without deduction for expected credit losses
Investments* 2,786.30 28.72 2,757.58 1,897.53 28.72 1,868.81
** This does not include investments in equity instruments carried at FVOCI/ FVTPL and investments in subsidiary as they are carried at cost in line with the
exemption given under Ind AS 27. Other financial assets ** 24,495.00 94.72 24,400.28 24,487.62 90.68 24,396.94
*** Represents principal outstanding without deduction for expected credit losses in respect to the investment in Redeemable Preference Shares of Rattan * The impairment allowance has been provided in full on ‘Investments in Reedemable Prefernce Shares’ of Rattan India Power Limited considered as credit-impaired.
India Power Limited. ** The impairment allowance has been provided in full on ‘Other financial assets’ considered as credit-impaired.
214 215
47.1.3 Expected Credit Loss for loans The Company has an internal system of grading for State Governments, Public Sector Undertakings and State Power Utilities. However,
for State Distribution Companies (DISCOMs), the Company adopts the ratings by the Ministry of Power as and when they are updated.
For risk management reporting purposes, the Company considers and consolidates following elements of credit risk: These ratings are mapped with external rating grades published by various credit rating agencies as part of rating transition matrix.
Credit default risk: The risk of loss arising from a debtor being unlikely to pay its loan obligations in full or the debtor is more than 90 For private borrowers, the Company uses the external rating as published by various credit rating agencies, or proxy risk score in case
days past due on any material credit obligation; default risk may impact all credit-sensitive transactions, including loans and securities. such rating is not available. The proxy risk score model considers following parameters :
Concentration risk: The risk associated with any single exposure or group of exposures with the potential to produce large enough Quantitative factors
losses to threaten Company’s core operations.
Debt/ EBITDA (30% weightage)
(A) Credit Risk Management Return on Capital Employed (15% weightage)
The credit risk is managed at different levels including at appraisal, disbursements and post disbursement monitoring. The Interest Coverage (25% weightage)
Company has “Integrated Rating Guidelines” and “Comprehensive Risk Management Policy”. To mitigate credit risk, the company
follows systematic institutional and project appraisal process to assess the credit risk. These processes include a detailed appraisal Gearing (Debt/Equity) (30% weightage)
methodology, identification of risks and suitable structuring and credit risk mitigation measures. Further, on periodic basis, the loan
Qualitative Factors
assets are reviewed and categorized as High/Moderate/Low based on ECL methodology. The process for Credit Risk Management are
as under: Quarter wise Operational Parameters like PPA, PLF, ACS – ARR Gap, and LAF
Actual Default dates
(i) The Company has “Integrated Rating Guidelines” covering credit assessment, risk grading, collateral requirements, reporting, Status of the Project
monitoring of end utilisation of funds etc. Further, independent Lender legal counsels are appointed to ensure effective
documentation and mitigation of legal risk (C) Measurement of Expected Credit Loss (ECL)
(ii) For all existing private sector projects, where the Company is Lead Financial Institution, the Company engages Lender’s
Independent Engineers (LIE), Lender’s Financial Advisors (LFA) and Lender’s Insurance Advisors (LIA), which are independent Ind AS 109 outlines a “three stage” model for impairment based on changes in credit quality since initial recognition as summarised
agencies who act on behalf of various lenders and consortium members. LIE conducts periodic site visits and submits reports below:
on progress status of the project, after discussion with borrower and inspection/ review of relevant documents. LFA submit
the statements of fund flow and utilization of funds in the project periodically. In cases where the Company is not the lead - A financial instrument that is not credit impaired on initial recognition and whose credit risk has not increased significantly
Financial Institution, the tasks related to LIE and LFA services are being coordinated with the lead lender. since initial recognition is classified as “Stage 1”.
The Company also endeavors to appoint a separate Project Management Agency (PMA) for new projects being financed, - If a significant increase in credit risk since initial recognition is identified, the financial instrument is moved to “Stage 2” but is
which subsumes the entire works of LIE /Project Management Consultant (PMC), LFA and LIA for better coordination among not yet deemed to be credit impaired.
the agencies. PMA is stationed at project site to closely monitor various day to day project execution activities including - If a financial instrument is credit impaired, it is moved to “Stage 3”.
monitoring of project progress, review of EPC/non-EPC contracts & invoices, fund utilization and insurance for the project. PMA
also verifies the bills of original equipment manufacturer/ supplier, composite works contractor and give its recommendation - Financial instrument in Stage 1 have their ECL measured at an amount equal to expected credit loss that results from default
for disbursement. Initial due diligence is also be performed by PMA taking the sanctity of technical and financial parameters events possible within the next 12 months. Instruments in Stage 2 or Stage 3 criteria have their ECL measured on lifetime basis.
including original project cost & COD.
(D) Significant Increase in Credit Risk (SICR)
Concurrent Auditors/Agencies for Specialized monitoring/Cash Flow monitoring agencies are being appointed by REC/
Lenders on case to case basis for effective monitoring of Trust & Retention Account (TRA) for stressed projects. The Company considers a financial instrument to have experienced a significant increase in credit risk when on any financial instrument
(iii) The Company has an authorisation structure for the approval and renewal of credit facilities. Authorisation limits have been if the payment is more than 30 days past due on its contractual payments.
established commensurating with the size of business proposal at CMD/Executive Committee/Loan Committee/ Board of
Directors based on the recommendation of Screening Committee, as appropriate. (E) Definition of default and credit-impaired assets
(iv) The Company has developed risk grading structure to categorise its exposures according to the degree of risk of default by The Company defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when the loan
charging appropriate interest rates and security package. account is more than 90 days past due on its contractual payments or or any such period allowed by the company in line with circular
(v) Regular reports on the credit quality of loan portfolios are provided to Risk Management Committee and Board, which may issued by the Reserve Bank of India.
require appropriate corrective action to be taken.
(F) Measuring ECL - explanation of inputs, assumptions and estimation techniques
(vi) External agencies are appointed from time to time to review the guidelines, policy and existing practices being followed by business
units along with providing the specialist skills to promote best practice throughout the Company for management of credit risk. Expected credit losses are the product of the probability of default (PD), exposure at default (EAD) and loss given default (LGD),
defined as follows:
(vii) Individual and Group Credit Exposures are assessed against designated limits, before facilities are committed to borrowers by
the business unit concerned. Sanction of additional facilities are also subject to the same review process. - PD represents the likelihood of the borrower defaulting on its obligation either over next 12 months or over the remaining
(viii) The Company continuously monitors delays and/ or default of borrowers & other counterparties and their recoverability. On lifetime of the instrument.
occurrence of default in the borrower’s account, the Company initiates necessary steps to cure the default which may involve - EAD represents the amounts, including the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC)
action(s) including, but not limited to, Special Mention Account (SMA) reporting to RBI, credit information reporting to Central that the Company expects to be owed at the time of default.
Repository of Information on Large Credits (CRILC), etc., monitoring of the TRA account, conversion of loan into equity as per
loan agreement, restructuring of loan account, formulating resolution plan with the borrower, change in ownership, Corporate - LGD represents the Company’s expectation of loss given that a default occurs. LGD is expressed in percentage and it shows the
Insolvency Resolution Process (CIRP), sale of the exposures to other entities/ investors and other recovery mechanisms proportion of the amount that will actually be lost post recoveries in case of a default.
including invocation of guarantees/ securities to recover the dues.
Determination of Probability of Default (PD)
(B) Credit risk Measurement
The Company has analysed the available average annual rating transition matrices published by Credit Rating Agencies to arrive at
The impairment loss allowance on loan assets is provided as per Ind AS 109 in accordance with a board-approved policy, which
annual transition matrix based PD. This annual transition matrix PD was extrapolated to arrive at the lifetime probability of default
measures the credit risk on the basis of key financial and operational parameters to assess improvement/ deterioration in credit quality.
of various rating grades by loan tenure / maturity profile i.e. lifetime PD. However, for State Distribution Companies (DISCOMs), the
Management overlays to the model output, if any, are duly documented and approved by the Audit Committee. The evaluation of
Company adopts the ratings by the Ministry of Power as and when they are updated
Expected Credit Loss (ECL) is undertaken by an independent agency, ICRA Analytics Limited (formerly ICRA Online Limited).
216 217
Loss Given Default (LGD) computation model (J) Collateral and other credit enhancements
Based on the historical trend, research and industry benchmarking the Company has constructed a LGD model. Factors reviewed in The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for
the LGD model include Project cost per unit, PPA status, FSA status etc. Based on internal research the company has benchmarked funds disbursed. The Company has internal policies on the acceptability of specific classes of collateral or credit risk mitigation. The
these factors for Thermal, Renewable in Private Sector. In case of Private sector borrowers, the realizable value of the assets were principal collateral types for loans and advances are:
arrived using suitable assumptions, including valuation reports carried out by the company, outcome of the resolution process etc., to
- Mortgage of Immovable properties
arrive at LGD. For State Government and Public sector projects, the Company has factored in the state support and assumed that the
State/Central governments would step in to repay debt obligations of the state utilities as witnessed in the past. - Hypothecation of Moveable property
(G) Alignment of LGD in case of Stage 3 Assets - Assignment of project contract documents
- Pledge of instruments through which promoters’ contribution is infused in the project
Stage-3 assets where REC and PFC (Group Companies) are in Consortium for Stage-III Loan accounts, LGD is taken on the following
basis: - Pledge of Promoter Shareholding
(a) In cases where either REC or PFC is lead lender, LGD % calculated by the lead lender is adopted. - Corporate and personal Guarantee of Promoters
(b) In cases where neither REC nor PFC is lead lender, higher of the LGD% worked out by REC and PFC is adopted. (K) Loss allowance
(H) Key assumptions used in measurement of ECL The loss allowance recognized in the period is impacted by a variety of factors, as described below:
(i) The Company considers the date of initial recognition as the base date from which significant increase in credit risk is - Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) of
determined. credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and
Lifetime ECL
(ii) EAD represents the amounts, including the principal outstanding, interest accrued and outstanding Letters of Comfort that the
Company expects to be owed at the time of default. - Additional allowances for new financial instruments recognised during the period, as well as releases for financial instruments
de-recognised in the period
(I) Credit Risk Exposure
- Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of
Credit Risk Exposure in respect of the borrowers with different credit ratings is as under inputs to models
(₹ in Crores) - Financial assets derecognised during the period and write-offs of allowances related to assets that were written off during the
Credit Risk Category As at 31.03.2023 As at 31.03.2022 period
(Internal/Mapped
Ratings) Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Performing
Very Good (AAA | AA | A | 192,836.82 276.33 - 193,113.15 181,968.90 11,661.35 - 193,630.25
Government Loan)
Good (BBB | BB | B) 147,389.05 9,128.03 - 156,517.08 96,631.68 24,762.88 - 121,394.56
Average (C ) 70,282.47 1,345.98 - 71,628.45 54,755.07 - - 54,755.07
Fair (D) 1,796.13 157.74 - 1,953.87 2,521.34 - - 2,521.34
Non- Performing (D) - 5.50 14,892.08 14,897.58 - - 17,159.89 17,159.89
Gross Exposure 412,304.47 10,913.58 14,892.08 438,110.13 335,876.99 36,424.23 17,159.89 389,461.11
Loss allowance (including 3,521.81 238.30 10,519.51 14,279.62 2,790.22 369.61 11,565.73 14,725.56
LoC)
Net Exposure 408,782.66 10,675.28 4,372.57 423,830.51 333,086.77 36,054.62 5,594.16 374,735.55
218 219
For the Year ended 31 March 2023
st
Stage 1 Stage 2 Stage 3 Total
Gross Amount 12 months ECL Gross Amount Lifetime ECL Gross Amount Lifetime ECL Gross Amount ECL
Opening Balance 335,876.99 2,790.22 36,424.23 369.61 17,159.89 11,565.73 389,461.11 14,725.56
Transfer to 12 months ECL 34,393.77 (353.01) (34,393.77) 353.01 - - - -
Transfer to life time ECL not credit impaired (2,798.11) (11.28) 2,988.10 83.95 (189.99) (72.67) - -
Transfer to Lifetime ECL credit impaired - - - - - - - -
Additional provision due to changes in PD/ LGD - 715.77 - (673.24) - (370.93) - (328.40)
New Financial assets originated or purchased (including further disbursements in existing assets) 91,644.92 684.49 6,338.03 118.42 - - 97,982.95 802.91
Financial Assets that have been derecognised (including recoveries in existing assets) (46,813.10) (304.38) (443.01) (13.45) (1,526.74) (51.54) (48,782.85) (369.37)
Write offs - - - - (551.08) (551.08) (551.08) (551.08)
Closing Balance 412,304.47 3,521.81 10,913.58 238.30 14,892.08 10,519.51 438,110.13 14,279.62
st
Opening Balance 358,891.11 1,282.46 2,888.05 141.43 18,256.93 11,791.31 380,036.09 13,215.20
Transfer to 12 months ECL 2,031.94 134.62 (1,396.55) (139.66) (635.39) 5.03 - (0.01)
Transfer to life time ECL not credit impaired (35,361.06) (40.15) 35,361.06 40.15 - - - -
Transfer to Lifetime ECL credit impaired (1,516.73) (214.87) - - 1,516.73 214.87 - -
Additional provision due to changes in PD/ LGD - 1,235.51 - 293.79 - 1,517.77 - 3,047.07
Financial Assets that have been derecognised (including recoveries in existing assets) (50,652.13) (177.20) (4,305.44) (6.32) (54.37) (39.24) (55,011.94) (222.76)
Write offs - - - - (1,924.01) (1,924.01) (1,924.01) (1,924.01)
Closing Balance 335,876.99 2,790.22 36,424.23 369.61 17,159.89 11,565.73 389,461.11 14,725.56
(L) Details of Stage wise Exposure and Impairment Loss Allowance:
Stage I Stage II Stage III Total Stage I Stage II Stage III Total
Total Exposure 412,304.47 10,913.58 14,892.08 438,110.13 335,876.99 36,424.23 17,159.89 389,461.11
Impairment Allowance 3,521.81 238.30 10,519.51 14,279.62 2,790.22 369.61 11,565.73 14,725.56
ECL % 0.85% 2.18% 70.64% 3.26% 0.83% 1.01% 67.40% 3.78%
220 221
The following tables explain the changes in the loan assets (including undisbursed Letters of Comfort) and the corresponding ECL allowance (P) In accordance with RBI Circular on Implementation of Ind AS by NBFCs dated 13th March, 2020, had the loans otherwise required to be
between the beginning and the end of the reporting period: classified as NPA as per IRACP norms been considered, Gross NPA to Gross Loans ratio would have been 4.77% (previous year 4.45%)
and Net NPA to Net Loans would have been 2.41% (previous year 1.51%) as at 31st March 2023.
(M) Concentration of credit risk
(Q) Write off policy
The Company monitors concentration of credit risk (loan assets including undisbursed Letters of Comfort) by type of industry in which
the borrower operates, further bifurcated into type of borrower, whether state or private. The Company writes off financial assets, in whole or in part, as directed by the order of the Judicial Authority or when it has exhausted
(₹ in Crores) all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable
Particulars As at 31.03.2023 As at 31.03.2022 expectation of recovery include ceasure of enforcement activity or where the Company’s recovery method is foreclosing on collateral
and the value of collateral is such that there is no reasonable expectation of recovery in full.
Gross Amount ECL Gross Amount ECL
Concentration by industry (R) Business Model Policy
Generation 169,432.41 11,694.33 155,202.14 12,298.95 The Company determines its business model at the level that best reflects how it manages groups of financial assets to achieve its
Renewables 30,503.46 306.33 13,449.27 225.20 business objective. The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of
Transcos 48,332.23 251.72 64,879.92 774.38 aggregated portfolios.
Discoms 185,085.13 2,008.12 152,115.74 1,411.67 The Company is in the business of lending loans across power sector value chain and such loans are managed to realize the cash flows
Power Infrastructure 1,453.29 5.85 - - by collecting contractual payments (including principal and interest) over the tenure of the loan. Further, investments in the nature of
Government Loans 3,303.61 13.27 3,814.04 15.36 debt investments and other financial assets may also be held by the Company to collect the contractual payments as per the agreed
Total 438,110.13 14,279.62 389,461.11 14,725.56 terms.
Concentration by ownership The Company’s business model therefore is “hold to collect” for Loans, certain Financial Investments and Other Financial Assets. Such
State 393,244.56 3,276.83 350,584.17 2,684.59 financial assets are measured at amortised cost if the contractual terms gives rise to cash flows that are solely payments of principal
Private 44,865.57 11,002.79 38,876.94 12,040.97 and interest on the amount outstanding.
Total 438,110.13 14,279.62 389,461.11 14,725.56
(S) Policy for sales out of amortised cost business
(N) Sector-wise Credit-impaired Assets - Percentage of Stage-III Assets to Total Advances in that sector
The Company does not resort to the sale of financial assets, including loan assets, in ordinary course of business.
Particulars As at 31.03.2023 As at 31.03.2022 However, the company may proceed for realization of amount due in respect of credit-impaired assets, as per the regulatory framework
Infrastructure Sector 3.42% 4.45% in India. As a result, the credit impaired loan may be either restructured/renegotiated or settled as part of IBC proceedings or otherwise
- Power 3.42% 4.45% and is assessed for derecognition as per the requirements of Ind AS 109 – Financial Instruments.
(T) There are no Accounts with overdues beyond 90 days but not treated as credit impaired (previous year Nil)
(O) Movement of Credit-impaired Assets
(₹ in Crores) (U) There are no reportable cases of loans transferred/ acquired during the FY 2022-23 (previous year Nil) under Master Direction – Reserve
Particulars For the Year ended For the Year ended Bank of India (Transfer of Loan Exposures) Directions, 2021 dated 24th September 2021.
31st March 2023 31st March 2022
(i) Gross Credit-impaired Assets to Gross Advances (%) 3.42% 4.45%
(ii) Net Credit-impaired Assets to Gross Advances (%) 1.01% 1.45%
(iii) Net Credit-impaired Assets to Net Advances (%) 1.04% 1.51%
(iv) Movement of Credit-impaired Assets (Gross)
(a) Opening balance 17,159.89 18,256.93
(b) Additions during the year - 1,516.73
(c) Reductions during the year (1,716.73) (689.76)
(d) Write-off during the year (551.08) (1924.01)
(e) Closing balance 14,892.08 17,159.89
(iv) Movement of Credit-impaired Assets (Net)
(b) Additions during the year 370.93 (215.91)
(d) Write-off during the year - -
(v) Movement of provisions for Credit-impaired Assets
(b) Provisions made during the year (370.93) 1,732.64
(c) Write-back of excess provisions (124.21) (34.21)
(d) Provision on assets written off during the year (551.08) (1924.01)
222 223
(V) Comparison between provision required as per RBI Income Recognition, Asset Classificaion and Provisioning norms (IRACP)
and Impairment Allowance as per Ind-AS
st
Asset classification as per Outstanding amount Gross Carrying Amount Loss Allowances (Provisions) Net Carrying Amount Provisions required as per Difference between Ind AS
Ind AS 109 as per Ind AS as required under Ind AS 109 IRACP norms 109 provisions and IRACP
Asset Classification as per RBI Norms norms
(1) (2) (3) (4) (5) (6)=(4)-(5) (7) (8)=(5)-(7)
Performing Assets
Stage 1 403,366.73 404,567.80 3,423.13 401,144.67 2,089.93 1333.20
Standard
Stage 2 10,908.08 11,016.14 232.80 10,783.34 43.63 189.17
Sub Total (1) 414,274.81 415,583.94 3,655.93 411,928.01 2,133.56 1522.37
Non-Performing Assets
Substandard Assets Stage 1 5,839.39 5,866.14 82.81 5,783.33 583.94 (501.13)
Doubtful Assets
Up to 1 year Stage 3 1,512.48 1,512.48 754.15 758.33 350.72 403.43
1 to 3 years Stage 3 594.27 594.27 452.12 142.14 344.21 107.91
More than 3 years Stage 3 12,780.46 12,780.46 9,308.37 3,472.09 9,488.51 (180.14)
Subtotal for doubtful assets 14,887.21 14,887.21 10,514.64 4,372.56 10,183.44 331.20
Stage 2 5.50 5.50 5.50 - 5.50 -
Loss Assets
Stage 3 4.87 4.87 4.87 - 4.87 -
Sub-total for NPA (2) 20,736.97 20,763.72 10,607.82 10,155.89 10,777.75 (169.93)
Total Loan Assets 435,011.78 436,347.66 14,263.75 422,083.90 12,911.31 1352.44
Other items which are in scope of Ind-AS 109
but not covered under current IRACP norms
- Letter of Comfort* Stage 1 3,098.35 3,098.35 15.87 3,082.48 - 15.87
Sub-Total (3) 3,098.35 3,098.35 15.87 3,082.48 - 15.87
Stage 1 412,304.47 413,532.29 3,521.81 410,010.48 2,673.87 847.94
Stage 2 10,913.58 11,021.64 238.30 10,783.34 49.13 189.17
Total
Stage 3 14,892.08 14,892.08 10,519.51 4,372.56 10,188.31 331.20
Total 438,110.13 439,446.01 14,279.62 425,166.38 12,911.31 1368.31
* Gross carrying amount towards Letter of Comfort (LoC) represents non fund based exposures considered as financial guarantee as per IndAS 109
(₹ in Crores) (₹ in Crores))
For the Year ended 31st March 2022 Asset classification as per Outstanding amount Gross Carrying Amount Loss Allowances (Provisions) Net Carrying Amount Provisions required as per Difference between Ind AS
Ind AS 109 as per Ind AS as required under Ind AS 109 IRACP norms 109 provisions and IRACP
Asset Classification as per RBI Norms norms
(1) (2) (3) (4) (5) (6)=(4)-(5) (7) (8)=(5)-(7)
Performing Assets
Stage 1 331,787.14 332,586.36 2,769.32 329,817.04 1,771.72 997.60
Standard
Stage 2 36,424.23 36,888.95 369.61 36,519.34 391.52 (21.91)
Sub Total (1) 368,211.37 369,475.31 3,138.93 366,336.38 2,163.24 975.69
Substandard Assets Stage 3 1,512.49 1,512.49 437.16 1,075.33 190.83 246.33
Doubtful Assets
Up to 1 year Stage 3 33.28 33.28 3.33 29.95 7.25 (3.92)
1 to 3 years Stage 3 4,534.01 4,534.01 2,981.99 1,552.01 1,952.89 1029.10
More than 3 years Stage 3 11,062.89 11,062.89 8,126.03 2,936.86 8,108.58 17.45
Subtotal for doubtful assets 15,630.18 15,630.18 11,111.35 4,518.82 10,068.72 1042.63
Loss Assets Stage 3 17.22 17.22 17.22 - 17.22 -
Sub-total for NPA (2) 17,159.89 17,159.89 11,565.73 5,594.15 10,276.77 1,288.96
Total Loan Assets 385,371.26 386,635.20 14,704.66 371,930.53 12,440.01 2264.65
but not covered under current IRACP norms
Sub-Total (3) 4,089.85 4,089.85 20.90 4,068.95 - 20.90
Stage 1 335,876.99 336,676.21 2,790.22 333,885.99 1,771.72 1018.50
Stage 2 36,424.23 36,888.95 369.61 36,519.34 391.52 (21.91)
Total
Stage 3 17,159.89 17,159.89 11,565.73 5,594.15 10,276.77 1,288.96
Total 389,461.11 390,725.05 14,725.56 375,999.48 12,440.01 2285.55
224 225
(W) There has been no divergence in Asset Classification and Provisioning assessed during last annual inspection conducted by the RBI for The Company manages its liquidity risk through a mix of strategies, including forward-looking resource mobilization based on
the FY 2021-22 vis-à-vis as reported by the company (Nil for FY 2020-21) projected disbursements and maturing obligations. The Company has put in place an effective Asset Liability Management System
and has also constituted an Asset Liability Management Committee (“ALCO”) which monitors the liquidity risk with the help of liquidity
47.2 Liquidity risk gap analysis.
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that The Company maintains adequate bank balances, short term investments that are readily convertible into cash and adequate
are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, borrowing and overdraft facilities by continuously monitoring the forecast and actual cash flows.
that it will have sufficient liquidity to meet its liabilities when they are due.
Continued
47.2.1 Maturity Pattern of Future Undiscounted Cash Flows
The cash flows towards items of financial liabilities (representing future undiscounted cash flows towards principal and interest)
is as under:
As at 31 March 2023
st
1-7 Days 8-14 Days Over 15 Days & Over 1 month & Over 2 months & Over 3 months & Over 6 months & Over 1 year & Over 3 years & Over 5 years Total
up to 1 Months up to 2 Months up to 3 Months up to 6 Months up to 1 year up to 3 years up to 5 years
Non-Derivative Financial Liabilities :
Rupee Borrowings
Debt Securities
- Principal - 4,300.00 2,985.00 - 1,600.00 2,774.00 11,679.49 55,952.14 39,135.88 79,689.14 198,115.65
- Interest - 379.26 361.56 1,110.62 2,715.12 2,347.00 7,051.00 23,022.00 16,309.00 24,176.16 77,471.72
Other Borrowings
- Principal 4,386.43 - - - 3,500.14 666.56 9,451.45 11,820.15 16,672.28 29,488.81 75,985.81
- Interest 395.00 - 150.00 392.00 685.00 1,150.00 2,437.00 8,310.00 5,703.00 3,103.00 22,325.00
Subordinated Liabilities
- Principal - - - 2,500.00 - - - - - 4,150.70 6,650.70
- Interest 202.00 164.00 188.00 705.00 705.00 2,646.00 4,610.00
Foreign Currency Borrowings
Debt Securities
- Principal - - - 4,110.85 - - 5,755.18 9,454.94 13,565.81 - 32,886.78
- Interest 252.00 72.00 310.00 536.00 1,116.00 580.00 - 2,866.00
Other Borrowings
- Principal - - - 3,074.91 3,588.54 2,693.64 12,341.08 7,473.44 27,958.11 3,847.77 60,977.48
- Interest 17.00 21.00 61.00 106.00 503.00 571.00 1,138.00 3,441.00 2,072.00 658.00 8,588.00
Derivative Liabilities :
Interest rate derivatives - - - - - - 0.60 50.07 71.98 178.16 300.81
Currency derivatives - - - - - 60.38 - - 83.52 - 143.90
Others -
Reverse cross currency derivatives - - - - - - - 104.61 - 427.63 532.24
226 227
As at 31 March 2022
st
1-7 Days 8-14 Days Over 15 Days & Over 1 month & Over 2 months & Over 3 months & Over 6 months & Over 1 year & Over 3 years & Over 5 years Total
Non-Derivative Financial Liabilities :
Rupee Borrowings
Debt Securities
- Principal - - - - 5,878.20 2,970.00 14,058.86 53,719.87 39,133.38 67,531.66 183,291.97
- Interest - 379.26 348.22 1,085.23 2,345.40 2,433.79 6,290.73 21,667.98 14,748.20 22,337.48 71,636.29
Other Borrowings
- Principal - - 160.93 1,150.00 1,000.00 1,824.29 5,163.63 17,836.77 15,155.51 18,798.15 61,089.28
- Interest 272.39 - 63.24 202.90 496.89 671.39 1,604.83 4,949.21 3,439.46 3,027.89 14,728.20
Subordinated Liabilities
- Principal - - - - - - - 2,500.00 - 4,150.70 6,650.70
- Interest - - - 201.50 114.94 - 163.60 759.35 557.08 787.73 2,584.20
Debt Securities
- Principal - - - - - - - 17,814.67 6,822.64 5,685.54 30,322.85
- Interest - - - 227.28 66.15 285.65 584.79 1,691.31 769.79 171.02 3,795.99
Other Borrowings
- Principal - - - 2,744.22 2,887.33 2,664.98 4,506.16 8,555.57 21,129.28 3,001.98 45,489.52
- Interest 8.00 7.18 22.42 67.65 124.53 263.85 447.00 1,388.28 812.26 516.82 3,657.99
Derivative Liabilities :
Interest rate derivatives - - - 0.07 - 18.82 - 42.62 - 112.01 173.52
Currency derivatives - - - - - - - 13.87 - 34.50 48.37
Others -
Reverse cross currency derivatives - - - - - - - 22.50 - 308.74 331.24
Bonds with put & call option have been shown considering the earliest exercise date. The liquidity analysis for derivative financial liabilities is based on fair values of
the derivative contracts and the maturity buckets have been derived on the basis of the remaining tenor of the respective derivative instrument.
Significant cashflows required for financial liabilities shall be funded through the undiscounted cash flows (principal and interest)
from loans as below:
Particulars 1-7 Days 8-14 Days Over 15 Days & Over 1 month & Over 2 months & Over 3 months & Over 6 months & Over 1 year & Over 3 years & Over 5 years Total
Principal 822.91 - 1,707.32 3,878.16 5,350.60 22,097.85 30,180.20 81,757.04 85,313.12 189,640.84 420,748.04
Interest 1,137.01 - 926.30 2,106.65 6,071.24 10,044.89 18,662.94 63,776.14 47,148.86 76,238.57 226,112.62
As at 31 March 2022
st
Principal 158.66 - 2,077.03 2,142.80 4,800.08 8,892.93 19,691.55 74,970.39 74,346.88 183,586.28 370,666.60
Interest 611.62 - 892.06 1,559.14 6,094.78 9,076.43 17,252.35 59,983.17 44,663.39 71,842.69 211,975.63
The principal cash flows relating to Stage III assets, net of Expected Credit Loss have been considered in over 5 years bucket irrespective
of the maturity date.
228 229
47.2.2 Maturity Pattern of Significant Financial Assets & Liabilities, as prescribed by RBI
As at 31st March 2023 1-7 Days 8-14 Days Over 15 Days & Over 1 month & Over 2 months & Over 3 months & Over 6 months & Over 1 year & Over 3 years & Over 5 years Total
Loan Assets 822.91 - 1,707.32 3,878.16 6,686.47 22,097.85 30,180.20 81,757.04 85,313.12 189,640.84 422,083.91
Investments 4.73 4.73 36.77 157.38 259.03 2,675.35 3,137.98
Rupee Borrowings
Debt Securities 261.99 4,667.81 3,315.50 831.94 3,488.89 4,136.02 12,997.04 55,891.49 39,047.68 79,620.08 204,258.45
Other Borrowings 4,620.32 - - - 3,703.42 666.56 9,451.45 11,820.15 16,672.28 29,488.81 76,422.98
Subordinated Liabilities 2.11 - - 2,668.34 126.46 - - - - 3,976.40 6,773.30
Debt Securities - - - 4,297.43 43.56 96.67 5,742.53 9,438.34 13,072.00 - 32,690.54
Other Borrowings 129.70 - 2.53 3,106.25 3,658.67 2,688.69 12,311.25 7,409.95 27,542.82 3,841.28 60,691.15
As at 31st March 2022 1-7 Days 8-14 Days Over 15 Days & Over 1 month & Over 2 months & Over 3 months & Over 6 months & Over 1 year & Over 3 years & Over 5 years Total
Loan Assets 158.66 - 2,077.03 2,142.80 6,181.63 8,892.93 19,691.55 74,970.39 74,346.88 183,468.67 371,930.54
Investments - - - - 2.81 2.82 55.65 80.05 180.59 1,836.05 2,157.97
Rupee Borrowings
Debt Securities 19.34 367.83 330.52 993.71 7,777.02 4,636.58 15,212.32 53,696.32 39,118.89 67,453.88 189,606.42
Subordinated Liabilities - - - 168.38 126.46 - 2.11 2,499.73 - 4,019.79 6,816.47
Debt Securities - - - 172.81 40.17 89.14 - 17,755.78 6,805.78 5,163.48 30,027.15
Other Borrowings 5.62 2.42 4.43 2,747.65 2,910.57 2,680.96 4,506.16 8,499.93 20,837.27 2,995.98 45,191.00
230 231
47.2.3 Financing arrangements (iii) Funding Concentration based on significant instrument / product
The Company had access to the following undrawn borrowing facilities at the end of the reporting period: Name of significant instrument / product* As at 31.03.2023 As at 31.03.2022
(₹ in Crores) Amount % of Total Amount % of Total
Particulars As at 31.03.2023 As at 31.03.2022 (₹ in Crores) Liabilities (₹ in Crores) Liabilities
Expiring within one year 1 Debt Securities
Institutional Bonds 150,217.70 36.89% 146,041.60 40.63%
- Fixed rate - -
Foreign Currency Bonds 32,886.78 8.08% 30,322.85 8.44%
- Floating rate 13,364.88 8,803.05
54EC Capital Gain Tax Exemption Bonds 37,586.91 9.23% 25,437.67 7.08%
Expiring beyond one year
Tax Free Bonds 10,307.08 2.53% 11,808.74 3.29%
- Fixed rate - -
Sub-Total (1) 230,998.47 56.73% 213,610.86 59.43%
- Floating rate 1,393.58 1,245.90
2 Borrowings (Other than Debt Securities)
47.2.4 Additional Disclosures in accordance with RBI Circular on liquidity risk management Term Loans from Banks 56,298.20 13.83% 42,878.32 11.93%
Foreign Currency Borrowings 45,553.26 11.19% 35,634.60 9.91%
The Company has put in place an effective Asset Liability Management System and has also constituted an Asset Liability Management
FCNR (B) Loans 15,424.22 3.79% 9,854.92 2.74%
Committee (“ALCO”) which monitors the liquidity risk with the help of liquidity gap analysis. The Company continuously monitors the
Term Loans from Govt. of India (NSSF) 10,000.00 2.46% 10,000.00 2.78%
projected and actual cash flows and accordingly maintains adequate bank balances, overdraft facilities, short term investments that
are readily convertible into cash and adequate borrowing plans. Term Loans from Financial Institutions 6,000.00 1.47% 6,800.00 1.89%
Sub-Total (2) 133,275.68 32.73% 105,167.84 29.26%
(i) Funding Concentration based on significant counterparty (borrowings) 3 Subordinated Liabilities
(₹ in Crores) Total (1+2+3) 6,650.70 1.63% 6,650.70 1.85%
Particulars As at 31.03.2023 As at 31.03.2022 Total (1+2+3) 370,924.85 91.09% 325,429.40 90.54%
* Significant counterparty/ significant instrument/ product is defined as a single counterparty/ single instrument/ product or group of connected or affiliated
Number of significant counterparties* 14 15 counterparties accounting in aggregate to more than 1% of the company’s total liabilities.
Amount (₹ in Crores) 178,043.46 155,352.32
% of Total Liabilities 43.72% 43.22% (iv) Stock Ratios:
(ii) Top 10 borrowings
Amount % of % of Total % of Amount % of % of % of
Particulars Amount (₹ in Crores) % of Total borrowings (₹ in Crores) Public Liabilities Total (₹ in Crores) Public Total Total
As at 31-03-2023 Funds Assets Funds Liabilities Assets
1 Term Loan from HDFC Bank 16,350.00 4.36% Commercial Papers - - - - - - - -
2 Term Loan from State Bank of India 10,900.26 2.91% Non-Convertible debentures - - - - - - - -
3 54EC- Series XVI (2022-23) 10,432.55 2.78% having maturity of less than
one year
4 Term Loan from Govt. of India- National Small Savings Fund (NSSF) 10,000.00 2.67%
Other Short-Term liabilities 20,286.94 5.42% 4.98% 4.36% 12,852.04 3.93% 3.58% 3.13%
5 Foreign Currency Borrowings- US $1175 Mn 9,660.49 2.58%
6 54EC- Series XV (2021-22) 7,312.80 1.95% (v) Liquidity Coverage Ratio (LCR)
7 54EC- Series XII (2018-19) 6,651.31 1.78%
RBI, vide its Liquidity Framework dated 04 Nov, 2019 has stipulated maintaining of Liquidity Coverage Ratio (LCR) by Non-Deposit
8 54EC- Series XIII (2019-20) 6,157.82 1.64% taking NBFCs with asset size of more than ₹ 10,000 Crores w.e.f. 01 Dec, 2020. These guidelines of RBI aims to ensure that Company
9 Tax Free Bonds (2013-14 Series) 6,000.00 1.60% has an adequate stock of unencumbered High-Quality Liquid Assets (HQLA) that can be converted into cash easily and immediately
10 Foreign Currency Bond- US $700 Mn 5,755.18 1.54% to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario.
Total 89,220.41 23.82% The LCR is represented by:
As at 31-03-2022 The Stock of High-Quality Liquid Assets
1 Term Loan from State Bank of India 12,729.30 3.89% Total Net Cash Outflows over the next 30 calendar days
2 Term Loan from HDFC Bank 12,000.00 3.67% where,
3 Term Loan from Govt. of India- National Small Savings Fund 10,000.00 3.06%
(NSSF) (i) Total net cash outflows is defined as the total expected cash outflows minus total expected cash inflows for the next 30
calendar days, where the cash flows are assigned a predefined stress percentage, as prescribed by RBI.
5 Term Loan from India Infrastructure Finance Company Ltd. (IIFCL) 6,800.00 2.08% (ii) High Quality Liquid Assets (HQLA) means liquid assets that can be readily sold or immediately converted into cash at little or
no loss of value or used as collateral to obtain funds in a range of stress scenarios.
6 54EC- Series XII (2018-19) 6,651.77 2.04%
7 54EC- Series XIII (2019-20) 6,157.72 1.88% The LCR requirement is binding on NBFCs from December 1, 2020 with the minimum HQLAs to be held being 50% of the LCR,
8 54EC- Series XV (2021-22) 6,024.57 1.84% progressively reaching up to the required level of 100% by December 1, 2024.
9 Tax Free Bonds (2013-14 Series) 6,000.00 1.84% At Present, HQLA investments are held in INR in the form of Government Securities(G-Sec)/ State Development Loans (SDLs) Securities
10 54EC- Series XIV (2020-21) 5,312.07 1.63% and AAA/AA Corporate Bonds and demand deposits with banks. Management is of the view that Company has sufficient liquidity
cover to meet its likely future short-term requirements.
Total 80,582.76 24.65%
232 233
Composition of HQLA:
Out of the Stock of HQLA, the Government Securities is the highest proportion of HQLA followed by AAA/AA Corporate bonds and auto
swap balances. The position of HQLA holding as on 31 March 2023 is as follows:
HQLA Items % of Overall

Assets without Haircut 74%
- Cash and Cash Equivalents 3%
- G-Sec and SDLs 71%
Assets with 15% Haircut 26%
- Corporate Bonds 26%
Assets with 50% Haircut -
Total 100%
Liquidity Coverage Ratio Disclosure

(₹ in Crores)
Particulars Quarter ended 31-03-2023 Quarter ended 31-12-2022 Quarter ended 30-09-2022 Quarter ended 30-06-2022 Quarter ended 31-03-2022
Total Total Weighted Total Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Unweighted Value Unweighted Value Value (average)* Value (average)* Value (average)* Value (average)* Value (average)* Value (average)*
Value (average)* Value (average)*
(average)* (average)*
High Quality Liquid Assets
Total High Quality Liquid Assets (HQLA) 2,110.21 2,016.54 2,159.97 2,078.10 1,597.58 1,563.97 1,642.30 1,608.28 1,719.78 1,686.09
- AA/AAA Corporate Bonds 624.47 530.80 545.79 463.92 224.05 190.44 226.80 192.78 224.56 190.87
- G-SEC Bonds/ State Development Loans (SDLs) 1,429.73 1,429.73 1,399.17 1,399.17 1,373.53 1,373.53 1,374.50 1,374.50 1,296.73 1,296.73
- Demand Deposits 56.01 56.01 215.00 215.00 - - 41.00 41.00 198.49 198.49
Cash Outflows
Other contractual funding obligations 6,369.18 7,324.56 9,136.57 10,507.05 4,735.16 5,445.43 6,189.00 7,117.35 8,279.00 9,520.85
Other contingent funding obligations 295.35 339.65 474.87 546.10 79.40 91.31 216.00 248.40 848.00 975.20
Total Cash Outflows 6,664.53 7,664.21 9,611.43 11,053.15 4,814.56 5,536.74 6,405.00 7,365.75 9,127.00 10,496.05
Cash Inflows
Inflows from fully performing exposures 7,305.09 5,478.82 6,363.05 4,772.29 5,009.00 3,756.75 6,136.00 4,602.00 6,414.00 4,810.50
Other cash inflows 9,892.26 7,419.19 10,859.02 8,144.27 7,975.00 5,981.25 9,296.00 6,972.00 10,223.00 7,667.25
Total Cash Inflows (restricted to 75% of Outflows on every 17,197.34 5,748.16 17,222.08 8,289.86 12,984.00 4,152.56 15,432.00 5,524.31 16,637.00 7,872.04
observation day)
Total Adjusted Value
Total HQLA (A) 2,016.54 2,078.10 1,563.97 1,608.28 1,686.09
Total Net Cash Outflows (B) 1,916.05 2,763.29 1,384.19 1,841.44 2,624.01
Liquidity Coverage Ratio (A / B) 105.24% 75.20% 112.99% 87.34% 64.26%
% Variance (from previous quarter) 39.95% -33.44% 29.37% 35.92%

* For average, daily observation during the respective quarter has been considered.
234 235
47.3 Market Risk - Currency Risk The table below shows the overall exposure of the Company to the liabilities linked with floating interest rates as at 31st March 2023 is
as under:
The Company is exposed to foreign currency risk from various foreign currency borrowings primarily denominated in USD, EURO, JPY
and SGD. The Company has a risk management policy which aims to manage the foreign currency risk arising from its borrowings (Foreign Currency amounts in Millions, INR equivalent in ₹ Crores)
denominated in a currency other than the functional currency of the Company. The Company uses combination of foreign currency Currency As at 31.03.2023 As at 31.03.2022
options structures, forward contracts and cross currency swap to hedge its exposure to foreign currency risk.
Floating Hedged Unhedged Floating Hedged Unhedged
An Asset Liability Management Committee (ALCO) is currently functioning under the chairmanship of CMD with Functional Directors, Interest Rate through Exposure Interest Rate through Exposure
executive directors and Chief General Managers from Finance and Operating Divisions as its members. ALCO monitors Foreign Exposure Derivatives Exposure Derivatives
currency risk with exchange rate and interest rate managed through various derivative instruments. ‘The Company enters into various
derivative transactions to cover exchange rate through various instruments like foreign currency forwards contracts, currency options, INR Borrowings 62,798.20 - 62,798.20 50,178.32 - 50,178.32
principal only swaps and forward rate agreements. These derivative transactions are done for hedging purpose and not for trading or
speculative purpose. USD $ 5,062.00 1,892.00 3,170.00 4,636.00 1,325.00 3,311.00
In respect of foreign currency debt securities and borrowings, the company has also executed cross currency swaps (principal and/or interest) INR Equivalent 41,618.19 15,555.43 26,062.76 35,144.17 10,044.44 25,099.73
to hedge the Foreign Currency Exposure. The outstanding position of Foreign Currency Exposure as at 31st March 2023 is as under:
JPY ¥ 58,352.75 10,327.17 48,025.58 58,352.72 10,327.16 48,025.56
(Foreign Currency amounts in Millions, INR equivalent in ₹ Crores)
INR Equivalent 3,606.20 638.22 2,967.98 3,631.29 642.66 2,988.63
Currency As at 31.03.2023 As at 31.03.2022
EURO € 604.02 - 604.02 - - -
Total Exposure Hedged Unhedged Total Exposure Hedged Unhedged
through Exposure through Exposure INR Equivalent 5,412.51 - 5,412.51 - - -
Derivatives Derivatives
SGD $ 285.28 72.07 213.21 72.08 72.08 -
USD $ 10,012.00 9,012.00 1,000.00 9,436.00 7,620.00 1,816.00
INR Equivalent 82,315.60 74,093.87 8,221.73 71,531.58 57,765.01 13,766.57 INR Equivalent 1,763.27 445.47 1,317.80 403.21 403.21 -
JPY ¥ 58,352.75 58,352.75 - 58,729.87 20,846.05 37,883.82 Total INR Equivalent 115,198.37 16,639.12 98,559.25 89,356.99 11,090.31 78,266.68
INR Equivalent 3,606.20 3,606.20 - 3,654.76 1,297.25 2,357.51 The Company also uses Interest Rate Swaps to manage fair value risk on interest rate borrowings to mitigate the interest rate sensitivity
EURO € 689.58 673.79 15.79 26.32 0.87 25.45 mismatch. Through such swaps, the fixed rate borrowings amounting to ₹15,950.70 crores as on 31st March 2023 (Previous year
₹11,850.70 crores) have been converted into floating rate borrowings through the use of MIBOR-linked Overnight Indexed Swaps.
INR Equivalent 6,179.19 6,037.68 141.51 222.82 7.37 215.45
The Company’s lending portfolio carries interest at semi-fixed rate i.e. fixed rate of interest with 1/3/10 year reset option with the
SGD $ 285.28 285.28 - 72.08 72.08 - borrower. The Company reviews its lending rates periodically based on prevailing market conditions, borrowing cost, yield, spread,
INR Equivalent 1,763.27 1,763.27 - 403.21 403.21 - competitors’ rates, sanctions and disbursements etc. In order to manage pre-payment risks, the Company charges pre-payment
Total 93,864.26 85,501.02 8,363.24 75,812.37 59,472.84 16,339.53 premium from borrowers in case of pre-payment of loan. The interest rate risk is managed by the analysis of interest rate sensitivity
gap statements and by evaluating the creation of assets and liabilities with a mix of fixed and floating interest rates.
Sensitivity Analysis The Company is exposed to interest rate risk on following Loan Assets which are at semi-fixed rates:
(₹ in Crores)
The table below represents the impact* on P&L including FCMITDA (+ Gain / (Loss) for 5% change in foreign currency exchange rate
against INR on the unhedged exposures: Description As at 31.03.2023 As at 31.03.2022
(₹ in Crores)
Rupee Loans 4,31,992.47 3,75,805.76
Sensitivity Analysis
Favorable Adverse Favorable Adverse
The table below represents the impact* on P&L Gain / (Loss) for 50 basis points increase or decrease in interest rate on Company’s
USD/INR 307.62 (307.62) 515.09 (515.09)
floating rate assets and liabilities on the unhedged exposures:
JPY/INR - - 88.21 (88.21) (₹ in Crores)
EUR/INR 5.29 (5.29) 8.06 (8.06) Particulars As at 31.03.2023 As at 31.03.2022

* Holding all other variables constant Increase (Decrease) Increase (Decrease)
47.4 Market Risk - Interest Rate Risk Floating Rate Loan Liabilities (368.77) 368.77 (292.84) 292.84
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in interest rates. Interest Rate Swaps (59.68) 59.68 (44.34) 44.34
Interest rates are dynamic and dependent on various internal and external factors including but not limited to RBI policy changes,
liquidity in the market, movement of external benchmarks such as AAA bond/ G-Sec yields/ LIBOR etc. Some of the borrowings of the Floating/ semi-fixed Rate Loan Assets 1,616.34 (1,616.34) 1,406.11 (1,406.11)
Company are exposed to interest rate risk with floating interest rates linked to LIBOR (London Inter Bank Offered Rate), EURIBOR (Euro * Holding all other variables constant
Inter Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate), Term SOFR, SORA (Singapore Overnight Rate Average),
TONAR (Tokyo Overnight Average Rate), T-Bills, Repo Rate etc. The Company manages its interest rate risk through various derivative The above sensitivity analysis has been prepared assuming that the amount outstanding at the end of the reporting period remains
contracts like interest rate swap contracts, forward interest rate contracts to minimize the risk of fluctuation in interest rates. The outstanding for the whole year. A 50 basis point increase or decrease represents management’s assessment of the reasonably possible
Company also uses cross-currency interest rate swaps as a cost-reduction strategy to benefit from the interest differentials in different change in interest rates.
currencies.
236 237
47.4.1 Disclosures in respect of Interest Rate Benchmark Reform (IBOR) has come up with the ISDA 2020 IBOR Fallbacks Protocol (commonly referred to as Fallback Protocol) to move all the legacy contracts
to new benchmarks. The Company has adhered to the Fallbacks Protocol under which the fallbacks for the various LIBOR benchmarks
The Company has variable interest rate borrowings with interest rates linked with different benchmarks. Such interest rate benchmarks
will automatically become applicable to the existing derivative trades with all counterparties.
for foreign currency borrowings include 3/6 Months’ USD LIBOR (London Inter Bank Offered Rate), 3/6 Months’ EURIBOR (Euro Inter
Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate), 3/6 Months’ Term SOFR, SORA (Singapore Overnight Rate With respect to the term loans, REC has been actively engaging with the lenders to initiate the transition exercise at an early
Average), TONAR (Tokyo Overnight Average Rate), SOFR (Secured Overnight Financing Rate) etc. The summary of such borrowings as stage. During the year 2022-23, lenders for 10 USD loans amounting to USD 3,275 Million (INR equivalent as on 31st March,
on 31st March, 2023 as per the contracted interest rate benchmark is as below: 2023 ₹26,926.04 crores) have agreed for transition of the benchmarks from USD LIBOR to Overnight SOFR/ Term SOFR.
During previous year, the company has completed the transition documentation for two JPY loans amounting to JPY 20,846.12 Billion
Benchmark As at 31-03-2023 As at 31-03-2022 (INR equivalent as on 31st March, 2022 ₹1,297.25 crores) with the benchmark changed from JPY LIBOR to TONA . Additionally, an active
transition for one SGD loan amounting to SGD 72.08 Million (INR equivalent as on 31st March, 2022 ₹403.21 crores) has also been
Amount Amount Amount Amount concluded during the previous year with the benchmark changed from 6M SOR (Singapore Swap Offer Rate) to SORA (Singapore
(₹ in Crores) (USD Mn Equivalent) (₹ in Crores) (USD Mn Equivalent) Overnight Rate Average)
(iii) Significant Assumptions for exposures affected by the Interest Rate Benchmark Reform
3M USD LIBOR 1,233.26 150.00 7,201.67 950.00
Ind AS 109 provides temporary exceptions to all the hedging relationships directly impacted by the Interest Rate Benchmark Reform.
6M USD LIBOR 29,080.13 3,537.00 27,373.94 3,611.00 While the benchmarks for the underlying loan are yet to be agreed with the lenders, it has been assumed that there will be no change
in the alternative benchmark rates of the underlying loan and the derivative contracts and hedge effectiveness is not altered as a result
3M Term SOFR 6,988.44 850.00 - - of such reform.
(iii) Significant Assumptions for exposures affected by the Interest Rate Benchmark Reform
6M Term SOFR 822.17 100.00 - -
O/N SOFR 3,494.22 425.00 568.55 75.00 While the benchmarks for the underlying loan are yet to be agreed with the lenders, it has been assumed that there will be no change
3M EURIBOR 3,595.53 437.32 - - of such reform.
6M EURIBOR 3,134.74 381.28 - - 47.5 Hedge accounting
The Company designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in cash flow
O/N TONA 3,606.20 438.62 3,631.29 479.02
hedges. For option contracts, the Company designates only the intrinsic value of option contracts as a hedged item by excluding the
time value of the option. The changes in the fair value of the aligned time value of the option are recognised in Other Comprehensive
O/N SORA 445.48 54.18 403.21 53.19
Income and accumulated in the cost of hedging reserve. The time value of the options at the inception of the hedging relationship is
reclassified to Profit or Loss on a straight-line basis.
Total 52,400.17 6,373.40 39,178.67 5,168.21
Hedge ineffectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
As announced by the UK Financial Conduct Authority (FCA) on 5th March 2021, 3 Month and 6 Month USD LIBOR will cease to be assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Company applies
published after 30th June 2023. the following effectiveness testing strategies:
(i) Exposure directly affected by the Interest Rate Benchmark Reform (IBOR) (i) For cross currency swaps and interest rate swaps that exactly match the terms of the terms of the hedged item, the economic
While some of the floating rate borrowings of the Company are already under the new benchmarks, some of the borrowings will relationship and hedge effectiveness are based on the qualitative factors using critical terms match method.
also get repaid before the cessation date of the respective interest rates, i.e. 3M USD LIBOR and 6M USD LIBOR. Accrodingly, the total (ii) For other interest rate swaps (in cases of late designation), the Company uses dollar offset method using a hypothetical derivatives,
amount of exposure that is directly affected by the Interest Rate Benchmark Reform (IBOR) is ₹28,159.29 crores (USD 3.425 Billion) as dollar offset method is a quantitative method that consists of comparing the change in fair value or cash flows of the hedging
on 31st March, 2023 (₹25,963.93 crores (USD 3.425 Billion) as on 31st March, 2022). Out of this, the nominal amount of the derivative instrument with the change in fair value or cash flows of the hedged item attributable to the hedged risk.
exposure linked with such liabilities and accounted for under hedge accounting is ₹4,110.85 crores (USD 0.500 Billion) [previous year
₹3,790.36 crores (USD 0.500 Billion)] (iii) For option structures, the Company analyses the behaviour of the hedging instrument and hedged item using regression analysis
based dollar offset method.
(ii) Managing the process to transition to alternative benchmark rates
Pursuant to the Interest Rate Benchmark Reform, LIBOR will be replaced with alternative Risk-Free Rates (RFRs). SOFR (Secured
Overnight Financing Rate) will be the replacement for USD LIBOR, while TONA (Tokyo Overnight Average Rate) will replace JPY LIBOR.
ISDA (International Swaps and Derivatives Association), the globally recognized statutory body governing the global derivative deals,
238 239
The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk and notional amount of
the hedging instruments are identical to the hedged items.
Impact of Hedge Accounting
(a) Effects of hedge accounting on balance sheet
As at 31 March 2023
st
Notional amount Carrying amount of hedging instruments Maturity dates Hedge ratio Weighted average strike Change in fair value of Change in value of
(in Mn) price/rate hedging instruments hedged item used
Type of hedge and risks Assets Liabilities as the basis for
recognising hedge
effectiveness
Cash flow hedge
Foreign exchange and interest rate risk
(i) Foreign currency options structures
- Seagull Structure USD 8,387 6,970.98 2.25 May 2023 - Nov 2030 1:1 77.03 1,594.19 (1,594.19)
EUR 673.79 403.91 - Dec 2023- Mar 2028 1:1 1.03 210.89 (210.89)
SGD 285.29 32.00 83.52 Mar 2025- Oct- 2027 1:1 0.36 (65.66) 65.66
- Call Spread JPY 58,352.74 572.12 - Aug 2023 - Mar 2027 1:1 0.61 (52.15) 52.15
(ii) Cross Currency Interest Rate swaps USD 250 208.14 - March 2024 1:1 57.52 58.14 (58.14)
USD 800 85.92 - May 2023 - Mar 2025 1:1 3.52% and 72.79 98.24 (98.24)
JPY 10,327.12 - 0.60 Aug 2023 1:1 4.31% and 0.62 (0.33) 0.33
(iii) Principal only swaps USD 375 38.85 - Mar 2025 - Jun 2030 1:1 75.41 (35.15) 35.15
(iv) Interest rate swaps USD 1992 251.77 10.87 May 2023 - Nov 2030 1:1 0.98% 189.27 (189.27)
As at 31st March 2022 Notional amount Carrying amount of hedging instruments Maturity dates Hedge ratio Weighted average strike Change in fair value of Change in value of
Type of hedge and risks Assets Liabilities as the basis for
recognising hedge
effectiveness
Cash flow hedge
- Seagull Structure USD 7,045 4,744.05 - May 2022 - Jan 2027 1:1 74.31 (399.81) 399.81
USD 20,846.12 102.15 - Aug 2023 - Sep 2025 1:1 0.66 (96.08) 96.08
- Call Spread SGD 72.08 22.08 - Mar 2025 1:1 0.01 (1.77) 1.77
(ii) Cross currency swaps USD 250 76.73 - March 2024 1:1 57.52 (74.08) 74.08
USD 1,300 22.69 43.78 May 2022 - Mar 2025 1:1 2.99% and 72.94 112.67 (112.67)
JPY 10,327.12 - 1.50 Aug 2023 1:1 0.42% and 0.62 0.82 (0.82)
(iii) Principal only swaps USD 375 - 48.37 Mar 2025 - Jun 2030 1:1 75.41 (49.08) 49.08
(iv) Interest rate swaps USD 425 92.42 - Mar 2024 - Oct 2026 1:1 2.23% 130.27 (130.27)
240 241
(b) Effects of Cash Flow hedge accounting on Statement of Profit and Loss The impact of the hedged item on the balance sheet is as follows:
Type of hedge Change in value of Hedge Amount Line item affected Fair value hedge Fair value hedge Notional Carrying Line item in balance sheet Changes in
hedging instrument ineffectiveness reclassified from on reclassification amount amount* where hedging instrument is fair value for
recognised in other recognised cash flow hedge disclosed calculating hedge
comprehensive income reserve ineffectiveness
Year ended 31.03.2023 As at 31-03-2023 - Subordinated Liabilities 4,748.24 (178.16) Subordinated Liabilities (49.83)
- Institutional bonds 7,773.47 (100.86) Debt Securities- Institutional Bonds (117.27)
- Currency risk and interest rate risk 1,997.43 - (4,995.73) Gain/ loss on foreign
exchange translation As at 31-03-2022 - Subordinated Liabilities 4,148.36 (128.33) Subordinated Liabilities (128.33)
(158.91) Finance cost - Institutional bonds 7,881.97 16.41 Debt Securities- Institutional Bonds 16.41
Year ended 31.03.2022 The decrease in fair value of the interest rate swap of ₹167.10 crores (Previous year ₹111.92 crores) has been offset with a similar gain
on the respective subordinated liabilities and debt securities.
- Currency risk and interest rate risk (377.06) - (995.95) Gain/ loss on foreign
exchange translation 47.6 Market Risk - Price risk
126.43 Finance cost The Company is exposed to price risks arising from investments in quoted equity shares. The Company’s investments are held for
strategic rather than trading purposes.
(c) Movement in cash flow hedging reserve and cost of hedging reserve
(₹ in Crores) Sensitivity Analysis
Particulars Year ended 31.03.2023 Year ended 31.03.2022 The table below represents the impact on OCI Gain / (Loss) for 5% increase or decrease in the respective prices on Company’s equity
investments, outside the group:
Effective portion of Cash Flow Hedges (₹ in Crores)
Opening Balance 194.21 (165.61) Particulars As at 31.03.2023 As at 31.03.2022
Add: Changes in intrinsic value of foreign currency option structures 5475.45 1108.37 Increase (Decrease) Increase (Decrease)
Add: Changes in fair value of cross currency swaps 32.25 111.72 Impact on Other Comprehensive Income (OCI) 3.36 (3.36) 2.68 (2.68)
Add: Changes in fair value of interest rate swaps 189.27 130.27 Impact on Profit and Loss account (PL) 1.37 (1.37) 2.48 (2.48)
Less: Amounts reclassified to profit or loss (5154.64) (869.52) 48 Additional Disclosures in respect of derivatives
Less: Deferred tax relating to above (net) (136.49) (121.02) 48.1 Forward Rate Agreements/ Interest Rate Swaps
Closing Balance 600.05 194.21 (₹ in Crores)
Costs of hedging reserve
(i) The notional principal of swap agreements 46,278.27 33,239.41
Opening Balance (395.95) 41.45
(ii) Losses which would be incurred if counterparties failed to fulfill their obligations 718.55 563.77
Add: Change in deferred time value of foreign currency option structures (3699.55) (1727.42) under the agreements
Less: Amortisation of time value 1943.73 1142.91 (iii) Collateral required by the NBFC upon entering into swaps Nil Nil
Less: Deferred tax relating to above (net) 441.90 147.11 (iv) Concentration of credit risk arising from the swaps Refer Note Below Refer Note Below
(v) The fair value of the swap book 417.73 390.25
Closing Balance (1,709.87) (395.95)
REC, being NBFC has entered into swap agreements with Category-I, Authorized Dealers Banks only, in accordance with the RBI guidelines. All the swap
agreements entered into with banks are well with in the credit risk limit defined in the Board approved Risk Management Policy.
(d) Fair Value Hedges
48.2 The Company has not entered into any exchange traded Interest Rate (IR) derivatives.
At 31st March 2023, Company has outstanding interest rate swap agreements of ₹15,950.70 crores (Previous year ₹11,850.70 crores) 48.3 Quantitative Disclosures
wherein the Company receives a fixed rate of interest and pays interest at a variable rate on the notional amount. Such agreements are (₹ in Crores)
being used to hedge the exposure to the changes in fair value of fixed rate borrowings.
Particulars Currency Derivatives * Interest Rate Derivatives ** Other Derivatives (Reverse
There is an economic relationship between the hedged item and the hedging instrument as the terms of the interest rate swap match cross currency swaps)***
the terms of the fixed rate loan (i.e., notional amount, maturity, payment and reset dates). As such, a hedge ratio of 1:1 for the hedging As at As at As at As at As at As at
relationships has been established as the underlying risk of the interest rate swap is identical to the hedged risk component. 31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
The impact of the hedging instrument on the balance sheet is as follows: (i) Derivatives (Notional Principal Amount)
(₹ in Crores) For hedging 85,501.02 59,472.85 46,278.27 33,239.41 4,947.00 4,747.00
(ii) Marked to Market Positions
Fair value hedge Fair value hedge Notional Carrying Line item in balance sheet Changes in
amount amount* where hedging instrument is fair value for a) Asset (+) 8,263.06 4,946.40 718.55 563.77 - -
disclosed calculating hedge b) Liability (-) 146.02 48.37 300.82 173.52 530.11 331.25
ineffectiveness (iii) Credit Exposure 6,250.55 5,131.08 608.40 490.82 692.05 662.05
As at 31-03-2023 - Interest rate swap 15,950.70 (279.02) Derivative financial instruments (167.10) (iv) Unhedged Exposures 8,363.24 16,339.53 N.A. N.A. N.A. N.A.
* Includes Full Hedge, Pricipal only Swap and Call Spread and Seagull Options
As at 31-03-2022 - Interest rate swap 11,850.70 (111.92) Derivative financial instruments (111.92) ** Includes Interest Rate Derivatives as a strategy of cost reduction
* Carrying amount here is exclusive of the interest receivable under such derivative contract as on reporting date. *** Includes Reverse Cross Currency swap as a strategy of cost reduction
242 243
49 RBI Scale Based Framework (SBR) for NBFCs 50.4 Intra-Group Exposures
(₹ in Crores)
RBI has introduced Scale Based Framework (SBR) for NBFCs effective from 01 October, 2022, categorising NBFCs in four layers based
st
on their size, activity, and perceived riskiness. The Company, being government owned, is categorised as NBFC – Middle Layer and is Particulars As at 31.03.2023 As at 31.03.2022
subject to the guidelines / regulation as mentioned in the aforesaid framework. (i) Total amount of intra-group exposures
50 Exposure Related Disclosures - Investment in equity shares of Subsidiary company 0.10 0.10
RBI, vide its letter dated 17th September 2010 had categorized REC as an Infrastructure Finance Company (IFC) in terms of instructions (ii) Total amount of top 20 intra-group exposures 0.10 0.10
contained in RBI Circular CC No.168 dated 12th February 2010. As an IFC, the total permissible exposure for lending and investing is 30% (iii) Percentage of intra-group exposures to total exposure - -
of Tier-I capital in case of a single borrower and 50% in case of a single group of borrowers, respectively.
Hitherto the Company was continued to exempt by Reserve Bank of India (RBI) from its Credit concentration and exposure norms till 50.5 The company does not have any financing of Parent Company products during the current and previous year.
31st March, 2022. During the year, RBI has further communicated with respect to adherence of the aforesaid norms. In this regard the Company 50.6 Concentration of Advances, Exposures and Credit-impaired Assets
has taken necessary steps subsequent to the year-end, such as realigning exposures of some of borrowers, issuing perpetual bonds etc. As a (₹ in Crores)
result, the exposure w.r.t outstanding loans to its borrowers as on date is within the prescribed norms. Considering the company’s response Particulars As at 31.03.2023 As at 31.03.2022
and steps taken, RBI has vide letter dated 17th May 2023 advised the company to adhere the norms on sustained business.
(i) Concentration of Advances
50.1 Exposure to Real Estate Sector Total Advances to twenty largest borrowers (₹ in Crores) 267,729.20 239,602.97
The Company has no direct or indirect exposure to real estate sector as at 31 March 2023 (As at 31 March 2022 Nil).
st st Percentage of Advances to twenty largest borrowers to Total Advances of the Company 61.55% 62.17%
(ii) Concentration of Exposures*
50.2 Exposure to Capital Market
Total Exposure to twenty largest borrowers (₹ in Crores) 268,700.56 240,580.38
(₹ in Crores)
Percentage of Exposures to twenty largest borrowers to Total Exposure of the 61.12% 61.55%
Company on borrowers
(i) Direct investment in equity shares, convertible bonds, convertible debentures and 534.20 450.43 (iii) Concentration of Credit-impaired Assets
units of equity-oriented mutual funds the corpus of which is not exclusively invested
Total Exposure to the top four Credit-impaired Assets (₹ in Crores) 8,645.97 8,645.97
in corporate debt (includes investment in optionally convertible preference shares)
(ii) Advances against shares/ bonds/ debentures or other securities or on clean basis - - * Exposure for the purpose of above disclosure represents the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC)
to individuals for investment in shares (including IPOs/ ESOPs), convertible bonds, 51 Fair value disclosures
convertible debentures, and units of equity-oriented mutual funds
(iii) Advances for any other purposes where shares or convertible bonds or convertible - - The carrying values of financial instruments measured at amortised cost and fair value by category are as follows:
debentures or units of equity oriented mutual funds are taken as primary security (₹ in Crores)
(iv) Advances for any other purposes to the extent secured by the collateral security of - - Particulars Note No. As at 31.03.2023 As at 31.03.2022
shares or convertible bonds or convertible debentures or units of equity oriented mutual
funds i.e. where the primary security other than shares/ convertible bonds / convertible Financial assets measured at fair value
debentures / units of equity oriented mutual funds does not fully cover the advances Derivative financial instruments measured at
(v) Secured and unsecured advances to stockbrokers and guarantees issued on behalf - - (i) Fair value through other comprehensive income (FVOCI) 8 8,574.02 5,079.87
of stockbrokers and market makers (ii) Fair value through profit and loss (FVTPL) 8 407.59 430.30
(vi) Loans sanctioned to corporates against the security of shares / bonds / debentures - -
or other securities or on clean basis for meeting promoter's contribution to the Investments* measured at
equity of new companies in anticipation of raising resources (i) Fair value through other comprehensive income (FVOCI) 10 381.71 268.26
(vii) Bridge loans to companies against expected equity flows/ issues - - (ii) Fair value through profit and loss (FVTPL) 10 589.65 182.07
(viii) Underwriting commitments taken up by the NBFCs in respect of primary issue of shares - - Financial assets measured at amortised cost
or convertible bonds or convertible debentures or units of equity oriented mutual funds Cash and cash equivalents 6 39.00 126.40
(ix) Financing to stockbrokers for margin trading - - Bank balances (other than cash and cash equivalents) 7 1,948.34 2,295.30
(x) All exposures to Alternative Investment Funds - - Loan Assets 9 422,083.91 371,930.54
Total Exposure to Capital Market 534.20 450.43 Investments * 10 2,166.52 1,707.54
Other financial assets 11 24,400.28 24,396.94
50.3 Sectoral Exposure
Total 460,591.02 406,417.22
(₹ in Crores) Financial liabilities measured at fair value
Sectors As at 31-03-2023 As at 31-03-2022 Derivative financial instruments measured at
Principal Interest Total Gross Percentage Principal Interest Total Gross Percentage (i) Fair value through other comprehensive income (FVOCI) 8 386.58 205.64
Outstanding Accrued Exposure NPAs of Gross Outstanding Accrued Exposure NPAs of Gross
(including at Default NPAs to (including at Default NPAs to (ii) Fair value through profit and loss (FVTPL) 8 590.37 347.50
LoC) (EAD) EAD LoC) (EAD) EAD Financial liabilities measured at amortised cost
Industry Debt securities 17 236,948.99 219,633.57
Lending to Borrowings (other than debt securities) 18 137,114.13 106,651.59
Infrastructure Subordinated liabilities 19 6,773.30 6,816.47
Sector
Other financial liabilities 20 25,174.58 25,575.84
- Power 4,38,110.13 1,497.05 4,39,607.18 14,892.08 3.39% 3,89,461.11 1,381.55 3,90,842.66 17,159.89 4.39%
Total 406,987.95 359,230.61
Total Exposure 4,38,110.13 1,497.05 4,39,607.18 14,892.08 3.39% 3,89,461.11 1,381.55 3,90,842.66 17,159.89 4.39%
* Investment in subsidiary are measured at cost as per Ind AS 27, ‘Separate financial statements’ and hence, not presented here.
Exposure for the purpose of above disclosure represents the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC)
244 245
51.1 Fair values hierarchy (G) Investment in Unquoted Preference Shares - Level 3 - Investment in unquoted Optionally Convertible Cumulative Redeemable
Preference Shares (OCCRPS) of Rattan India Power Ltd. (RIPL) are classified as Level 3. The company has been alloted OCCRPS of the
The fair value of financial instruments as referred above has been classified into three categories depending on the inputs used in the borrower company pursuant to One Time Settlement arrangement executed on 23rd December 2019. The fair value has been taken as
valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level Nil as future cash flows are uncertain in such instruments. Any change in expectation of future cash flow is adjusted to reflect change
1 measurements] and lowest priority to unobservable inputs [Level 3 measurements]. in fair value of the investment.
The categories used are as follows: (H) Investment in Optionally Convertible Debentures of Essar Power Transmission Limited - Level 3 - Investment in unquoted
Optionally Convertible Debentures (OCDs) of Essar Power Transmission Limited are classified as Level 3, which have been alloted to the
Level 1: Quoted prices (unadjusted) for identical instruments in an active market; Company upon implementation of restructuring plan with the borrower. The fair value has been derived by present value technique
Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and by discounting future cash flows at interest rate applicable to the borrowers. Any change in expectation of future cash flow is adjusted
to reflect change in fair value of the investment.
Level 3: Inputs which are not based on observable market data (unobservable inputs).
(I) Investment in Optionally Convertible Debentures of R.K.M PowerGen Private Limited - Level 3 - Investment in unquoted
The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy at the date of event or change in circumstances Optionally Convertible Debentures (OCDs) of R.K.M PowerGen Private Limited are classified as Level 3, which have been alloted to
that caused the transfer. the Company upon implementation of restructuring plan with the borrower. The fair value has been taken as Nil as such debentures
are unsustainable in nature and future cash flows are uncertain. Any change in expectation of future cash flow is adjusted to reflect
Financial assets and liabilities measured at fair value - recurring fair value measurements
change in fair value of the investment.
(₹ in Crores)
Particulars As at 31.03.2023 As at 31.03.2022 51.2 Reconciliation of Financial Instruments measured at Fair Value through Level 3 inputs
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total The following table shows the reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities measured at
fair value:
Investments at FVOCI
(₹ in Crores)
Equity investments* 67.23 - 314.48 381.71 53.52 - 214.74 268.26
Particulars For the Year ended 31st March 2023
Investments at FVTPL
Equity investments 27.31 - - 27.31 49.52 - - 49.52 FVTPL (ii) FVOCI (iii) Total
Perpetual Bonds - - 437.26 437.26 - - - - Investment Investment Investment Investment in
Debentures - - 125.08 125.08 - - 132.55 132.55 in Perpetual in Preference in OCDs Unquoted Equity
Bonds Shares* Shares
Preference Shares** - - - - - - - -
Opening Balance - - 132.55 214.74 347.29
Assets at FVOCI
Derivative financial instruments - 8,574.02 - 8,574.02 - 5,079.87 - 5,079.87 Received in Loan Settlement (Refer Note 9.3) - - - 182.36 182.36
Assets at FVTPL Investment/ (Settlement) 428.00 - (26.66) - 401.34
Derivative financial instruments - 407.59 - 407.59 - 430.30 - 430.30 Transfer in Level 3 - - - -
Liability at FVOCI Transfer from Level 3 - - - - -
Derivative financial instruments - 386.58 - 386.58 - 205.64 - 205.64 Interest income (i) 9.26 3.24 19.19 - 31.69
Liability at FVTPL Fair value changes - (3.24) - (82.62) (85.86)
Derivative financial instruments - 590.37 - 590.37 - 347.50 - 347.50
Closing Balance 437.26 - 125.08 314.48 876.82
* includes investments in Universal Commodity Exchange Ltd of ₹ 16.00 crores, fair valued at Nil
Unrealised gain (loss) at year-end 9.26 - 11.46 (98.62) (77.90)
** represents investments in Reedemable Prefernce Shares’ of Rattan India Power Limited of ₹ 43.30 crores, fair valued at Nil
Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3) (₹ in Crores)
(A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily available Particulars For the Year ended 31st March 2022
quoted price in the market. FVTPL (ii) FVOCI (iii) Total
(B) Derivative Financial Instruments - Level 2 - The fair value has been determined on the basis of mark to market value provided by Investment Investment in Investment Investment Investment
the banks that have contracted to hedge the underlying risk. Such valuation is calculated using market observable inputs including in Perpetual Preference in OCDs in Venture in Equity
forward exchange rates, interest rates corresponding to the maturity of the contract and implied volatilities. Bonds Shares Capital Fund Shares
(C) Investment in Perpetual Bond - Level 3 - The Company had made investments in perpetual bonds of Canara Bank and UCO Bank Opening Balance - 42.99 143.06 - - 186.05
which are quoted on NSE/BSE. The Company had checked for active market transactions for these bonds. However, there was no Received in Loan Settlement (Refer Note 9.3) - - - - - -
history of any market activity in these bonds held by the Company, and therefore, quoted price for such bonds was not available. The Investment/ (Settlement) - - (41.95) - - (41.95)
Company had checked for any significant changes in credit rating of the investee banks, and if no change is noted, then, coupon rate Transfer in Level 3 - - - - 218.10 218.10
is considered for computing the fair value using discounted cash flow method.
Transfer from Level 3 - - - - - -
(D) Investment in Unquoted Equity of Universal Commodity Exchange Limited (UCX) - Level 3 - Investment in unquoted equity Interest income (i) - 6.02 21.13 - - 27.15
shares of UCX is classified as Level 3. It has been carried at Nil value by the Company due to the company specific reasons. UCX was
shut down in 2014, thereby, ceasing to exist as a going concern. Fair value changes - (49.01) 10.31 - (3.36) (42.06)
Closing Balance - - 132.55 - 214.74 347.29
(E) Investment in Unquoted Equity of Energy Efficiency Services Limited (EESL) - Level 3 - Investment in unquoted equity shares
Unrealised gain (loss) at year-end - (32.42) 12.49 - (19.36) (39.29)
of EESL is classified as Level 3. EESL ceases to be a Joint Venture (JV) with effect from September 01, 2021. The fair value has been
calculated on the basis of Net Asset Value (NAV) as stated in latest available Financial Statement of the investee company. Refer Note No. 10.5 for Investment in equity shares measured at Fair Value through Other Comprehensive Income (FVOCI) derecognised during the year
* represents investments in Reedemable Prefernce Shares’ of Rattan India Power Limited of ₹ 43.30 crores, fair valued at Nil
(F) Investment in Unquoted Equity of Jhabua Power Limited (JPL) and Ind Bharat Energy Utkal Limited (IBEUL)- Level 3 - Investment (i) forms part of line item ‘Interest Income’ in the Standalone Statement of Profit and Loss.
in unquoted equity shares of JPL and IBEUL are classified as Level 3. The company has been alloted equity shares of the borrower
(ii) Fair value gain/ (loss) on Investments at FVTPL forms part of line item ‘Net Loss/(Gain) on Fair Value changes’ in the Standalone Statement of Profit and Loss.
companies pursuant to their respective resolution plans. Their respective fair value has been calculated on the basis of Net Asset Value
(NAV) as stated in latest available Financial Statement of these investee companies. (iii) Fair value gain/ (loss) on Investments at FVOCI forms part of line item ‘Changes in Fair Value of FVOCI Equity Instruments’ in the Standalone Statement of Profit and Loss.
246 247
51.3 There were no transfers between Level 1 and Level 2 during the year Investment in PSU Bonds
51.4 Fair value of instruments measured at amortised cost The Company has made investments in PSU Bonds in order to maintain sufficient High Quality Liquid Assets as per RBI guidelines. The
company has computed fair value using market inputs i.e., Yield of G-Sec bonds for similar remaining maturity or credit rating wise spread for
Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows: PSUs for remaining maturity as per industry practice.
(₹ in Crores) Investments in securities issued by Borrower entities at the time of Loan Settlement/ Resolution
The fair value has been derived by present value technique by discounting future cash flows at interest rate applicable to the borrowers. Any
Carrying value Fair value Carrying value Fair value change in expectation of future cash flow is adjusted to reflect change in fair value of the investment.
Financial assets All other debt securities, borrowings and subordinated liabilities availed by the Company are variable rate facilities which are subject to
Cash and cash equivalents 39.00 39.00 126.40 126.40 changes in underlying Interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company
creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates
Bank balances (other than cash and cash equivalents) 1,948.34 1,948.34 2,295.30 2,295.30
applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective
Loans 422,083.91 421,931.84 371,930.54 372,175.00 carrying values.
Investments 2,166.52 2,166.26 1,707.54 1,726.25 52 There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at
Other financial assets 24,400.28 24,397.87 24,396.94 24,396.79 31st March 2023 (previous year Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises
Development Act, 2006 has been determined to the extent the status of such parties identified on the basis of information available
Total 450,638.05 450,483.31 400,456.72 400,719.74 with the Company.
Financial liabilities
53 Related Party Disclosures :
Debt securities 236,948.99 230,605.86 219,633.57 221,226.21
Borrowings (other than debt securities) 137,114.13 137,862.23 106,651.59 107,306.18 53.1 List of Related Parties
Subordinated liabilities 6,773.30 6,963.79 6,816.47 7,131.25
(1) Key Managerial Personnel
Other financial liabilities 25,174.58 25,174.58 25,575.84 25,575.84
Sh. S.K.G Rahate Chairman & Managing Director (ceased w.e.f May 10, 2022)
Total 406,011.00 400,606.47 358,677.47 361,239.47
Sh. Ravinder Singh Dhillon Chairman & Managing Director (from May 10, 2022 to May 16, 2022)
Valuation methodologies of financial instruments not measured at fair value
Sh. Vivek Kumar Dewangan Chairman & Managing Director (w.e.f May 17, 2022)
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not recorded
and measured at fair value in the Company’s financial statements. These fair values were calculated for disclosure purposes only. The below Sh. Ajoy Choudhury Director (Finance)
methodologies and assumptions relate only to the instruments in the above tables:
Sh. V.K. Singh Director (Technical) (w.e.f. July 15, 2022)
Financial assets and liabilities
Smt. Parminder Chopra PFC Nominee Director (Non-executive Director)
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which are net of Sh. Vishal Kapoor Govt. Nominee Director (ceased w.e.f September 14, 2022)
impairment, are a reasonable approximation of their fair value. Such instruments include: cash and cash equivalents, bank balances other than
cash and cash equivalents, contract assets and contract liability without a specific maturity. Sh. Piyush Singh Govt. Nominee Director (w.e.f September 14, 2022)
Loans and advances to customers Dr. Gambheer Singh Part Time Non-Official Independent Director
Fair values of loan assets are calculated using a portfolio-based approach, grouping loans as far as possible into homogenous groups based on Dr. Manoj M. Pande Part Time Non-Official Independent Director
similar characteristics. The Company then calculates and extrapolates the fair value to the entire portfolio, using discounted cash flow models Dr. Durgesh Nandini Part Time Non-Official Independent Director
that incorporate interest rate estimates considering all significant characteristics of the loans. Where such information is not available, the
Company uses historical experience and other information used in its collective impairment models. Sh. Narayanan Thirupathy Part Time Non-Official Independent Director (w.e.f. March 6, 2023)
Financial assets at amortised cost Sh. J.S. Amitabh Executive Director & Company Secretary
The fair values of debt securities measured at amortised cost are estimated using a discounted cash flow model based on contractual cash (2) Ultimate Holding Company
flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit risk.
Power Finance Corporation Ltd.
Issued debt
(3) Subsidiary Company
The fair values of the Company fixed interest-bearing debt securities, borrowings and subordinated liabilities are determined by applying
discounted cash flows (‘DCF’) method, using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The REC Power Development and Consultancy Limited (formerly REC Power Distribution Company Limited)
own non-performance risk as at 31st March 2023 was assessed to be insignificant.
(4) Associate Companies of REC Power Development and Consultancy Limited (formerly REC Power Distribution Company Limited)
Investment in Govt. Securities (G-SEC) and State Development Loan (SDL)
Chandil Transmission Limited
The Company has made investments in G-Sec and SDL in order to maintain sufficient High Quality Liquid Assets as per RBI guidelines. The Dumka Transmission Limited
market price of Government of India securities and state development loan is available as at reporting date and accrued interest from last
coupon date to the reporting date is added to market price. Mandar Transmission Limited
248 249
Koderma Transmission Limited (8) Below mentioned related parties of the Ultimate Holding Company are also considered as related parties of REC:
Bidar Transmission Limited (a) Key Managerial Personnel of Ultimate Holding Company
Ramgarh II Transmission Limited (incorporated on April 20, 2022)
Sh. Ravinder Singh Dhillon Chairman & Managing Director
Beawar Transmission Limited (incorporated on April 27, 2022) Smt. Parminder Chopra Director (Finance)
Sikar Khetri Transmission Limited (incorporated on May 06, 2022) Sh. Rajiv Ranjan Jha Director (Projects)
Luhri Power Transmission Limited (incorporated on October 28, 2022) Sh. Manoj Sharma Director (Commercial) (w.e.f August 29, 2022)
Meerut Shamli Power Transmission Limited (incorporated on December 14, 2022) Sh. Vishal Kapoor Govt. Nominee Director (ceased w.e.f upto June 08, 2022)
NERES XVI Power Transmission Limited (incorporated on January 10, 2023) Sh. Ajay Tewari Govt. Nominee Director (w.e.f. June 09, 2022)
Khavda II-D Transmission Limited (incorporated on April 25, 2022 and under the process of striking off the name of Company from the Sh Ram Chandra Mishra Part Time Non-Official Independent Director (ceased w.e.f upto July 11, 2022)
records of Registrar of Companies) Adv. Bhaskar Bhattacharya Part Time Non-Official Independent Director
Rajgarh Transmission Limited (transferred on May 30, 2022) Smt. Usha Sanjeev Nair Part Time Non-Official Independent Director
Neemuch Transmission Limited (incorporated on April 12, 2022 and transferred on August 24, 2022) Shri. Prasanna Tantri Part Time Non-Official Independent Director
ER NER Transmission Limited (transferred on October 10, 2022) Shri Manohar Balwani Company Secretary
GADAG II-A Transmission Limited (transferred on November 08, 2022) (b) Subsidiary Companies of Ultimate Holding Company
WRSR Power Transmission Ltd. (incorporated on September 22, 2022 and transferred on January 18, 2023) PFC Consulting Limited (PFCCL)
MP Power Transmission Package-I Limited (transferred on January 21, 2023) PFC Projects Limited (formerly Coastal Karnataka Power Ltd.) subsidiary w.e.f June 30, 2022
Khavda II-B Transmission Limited (incorporated on April 21, 2022 and transferred on March 21, 2023) (c) Associate Companies of Ultimate Holding Company
Khavda II-C Transmission Limited (incorporated on April 22, 2022 and transferred on March 21, 2023) Bihar Mega Power Limited
KPS3 Transmission Limited (incorporated on April 29, 2022 and transferred on March 21, 2023) Orissa Integrated Power Limited
Khavda RE Transmission Limited (incorporated on May 02, 2022 and transferred on March 21, 2023) Jharkhand Infrapower Limited
KPS2 Transmission Limited (incorporated on May 04, 2022 and transferred on March 21, 2023) Coastal Tamil Nadu Power Limited
ERWR Power Transmission Ltd. (incorporated on September 27, 2022 and transferred on March 21, 2023) Bihar Infrapower Limited
Khavda II-A Transmission Limited (incorporated on April 19, 2022 and transferred on March 28, 2023) Deoghar Infra Limited
Sakhigopal Integrated Power Company Limited
KPS1 Transmission Limited (incorporated on May 06, 2022 and transferred on April 20, 2023)
Ghogarpalli Integrated Power Company Limited
(5) Employment Benefit Trusts/ Funds
Odisha Infrapower Limited
REC Limited Contributory Provident Fund Trust
Deoghar Mega Power Limited
REC Gratuity Fund
Cheyyur Infra Limited
REC Employees’ Superannuation Trust
Ananthpuram Kurnool Transmission Limited
REC Employees’ Benevolent Fund
Chhatarpur Transmission Limited
REC Retired Employees’ Medical Trust
Siot Transmission Limited (incorporated on 27.04.2022 )
(6) Society registered for undertaking CSR Initiatives Fatehgarh III Beawar Transmission Limited (incorporated on 05.05.2022 )
REC Foundation Beawar Dausa Transmission Limited (incorporated on 06.05.2022 )
(7) Other Companies in which Key Managerial Personnel are Directors Fatehgarh III Transmission Limited (incorporated on 18.05.2022 )
Bhadla III Transmission Limited (incorporated on 27.05.2022 )
Samarpan Hospitals Private Limited
Fatehgarh IV Transmission Limited (incorporated on 08.06.2022 )
Nellore Transmission Limited (Related Party w.e.f July 15, 2022)
Khandukhal Rampura Transmission Limited (incorporated on 13.05.2022 and transferred on 07.10.2022)
Energy Efficiency Services Limited (Related Party ceased w.e.f July 28, 2022)
Dharamjaigarh Transmission Limited (incorporated on 18.11.2022 and transferred on 28.03.2023)
NTPC Limited (Related Party w.e.f September 14, 2022)
Raipur Pool Dhamtari Transmission Limited (incorporated on 18.11.2022 and transferred on 28.03.2023)
Jammu and Kashmir State Power Trading Company Limited (Related Party w.e.f January 18, 2023)
250 251
Khetri-Narela Transmission Limited (transferred on 11.05.2022) 53.3 Maximum amount of loans/ advances/ investments outstanding during the year:
Mohanlalganj Transmission Limited (transferred on 30.05.2022) (₹ in Crores)
Kishtwar Transmission Limited (transferred on 06.12.2022 )
RECPDCL
Bhadla Sikar Transmission Limited (transferred on 28.03.2023)
Debt Securities 57.44 57.44
Tatiya Andhra Mega Power Limited (Striked off from the records of Registrar of Companies on 27.09.2022) Loans & Advances to Subsidiaries 6.70 5.98
Coastal Maharashtra Mega Power Limited (Striked off from the records of Registrar of Companies on 29.09.2022) Investment 0.10 0.10
Chhattisgarh Surguja Power Limited (Striked off from the records of Registrar of Companies on 11.01.2023) Employment Benefit Trusts/ Funds
Shongtong Karcham-Wangtoo Transmission Limited (Striked off from the records of Registrar of Companies on 13.01.2023) Debt Securities 8.70 8.70
Employment Benefit Trusts/ Funds of Ultimate Holding
Tanda Transmission Company Limited (Striked off from the records of Registrar of Companies on 13.01.2023)
Company
Bijawar-Vidarbha Transmission Limited (under process of striking off the name from the records of Registrar of Companies)) Debt Securities 1.90 4.10
(e) Other Companies in which Key Managerial Personnel of Ultimate Holding Company are Directors Key Managerial Personnel (KMP)
PTC India Limited
Staff Loans & Advances 0.39 0.35
Energy Efficiency Services Limited (Related Party w.e.f September 29, 2022) Key Managerial Personnel of Ultimate Holding
SJVN Limited (Related Party w.e.f December 01, 2022) Company (KMP-PFC)
53.2 Amount due from/ to the related parties :
Companies in which KMP/ KMP-PFC are Directors
(₹ in Crores)
Investment in Equity Shares of Energy Efficiency Services 175.27 247.23
Particulars As at 31.03.2023 As at 31.03.2022 Limited (EESL)
Power Finance Corporation Limited (PFC)
53.4 Transactions with the related parties :
Other Financial Assets 3.54 - (₹ in Crores)
RECPDCL Particulars Year ended 31.03.2023 Year ended 31.03.2022
Debt Securities 45.44 57.44 Power Finance Corporation Limited (PFC)
Other Financial Assets 6.70 5.98 Dividend Paid 1,642.40 1,269.22
Other Financial Liabilities 1.43 6.10 Directors' Sitting Fee - 0.08
Employment Benefit Trusts/ Funds Recovery of Expenses incurred in Govt. Programmes 3.54 -
Debt Securities 3.70 8.70 Finance Cost on Loan Repayable on Demand from PFC - 14.47
Other financial liabilities- GOI Serviced Bonds 29.30 29.30 RECPDCL
Provisions 2.68 1.05 Govt. funds disbursed 0.18 0.11
Other financial assets 15.11 - Redemption of the bonds of Company 12.00 -
Employment Benefit Trusts/ Funds of Ultimate Holding Apportionment of Employee Benefit and Other Expenses 18.37 19.97
Company Dividend Income 27.45 22.43
Debt Securities 1.80 1.90 Rental Income 4.34 4.88
Key Managerial Personnel (KMP) Other Income 2.58 -
Debt Securities 0.05 0.16 Finance Costs - Interest Paid 4.51 4.56
Staff Loans & Advances 0.22 0.18 Other Expenses 3.54 12.45
Key Managerial Personnel of Ultimate Holding Employment Benefit Trusts/ Funds
Company (KMP-PFC)
Contributions made by the Company 31.25 18.28
Redemption of the bonds of Company 5.00 -
REC Foundation
Finance Costs - Interest Paid 3.28 3.28
Other Non Financial Assets - 1.20 Employment Benefit Trusts/ Funds of Ultimate Holding
Companies in which KMP/ KMP-PFC are Directors Company
Investment in Equity Shares of Energy Efficiency Services 140.43 214.74 Redemption of the bonds of Company 0.10 2.20
Limited (EESL) (Carried at Fair Value) Finance Costs - Interest Paid 0.16 0.38
Other Financial Assets- NTPC Limited 5.24 - Key Managerial Personnel (KMP)
Other Financial Assets- SJVN Limited 0.36 - Repayment/ Recovery of Staff Loans & Advances 0.12 0.10
252 253
(₹ in Crores)
Aggregate transactions with such government related entities are as under:
Repayment/ Recovery of Debt Securities 0.10 - (₹ in Crores)
Interest Income on Staff Loans 0.03 0.04 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Finance Costs - Interest Paid 0.06 0.07 Disbursement of Loans 3,857.30 2,059.64
Employee Benefits Expense - Managerial Remuneration 2.84 3.05 Interest income recognised 1,709.48 1,829.69
Directors' Sitting Fee 0.38 0.12 Other Expenditure- REC's contribution to Power Foundation 8.00 5.00
Key Managerial Personnel of Ultimate Holding Aggregate balance outstanding from such government related entities are as under:
Company (KMP-PFC) (₹ in Crores)
Finance Cost 0.01 0.01
REC Foundation
Loan Assets 20,902.65 17,854.95
Payment towards Corporate Social Responsibility (CSR) 151.95 112.00
Interest Accrued 12.99 4.52
Expenses
Refer Note No. 11, 18, 20, 31 and 44 in respect of material transactions with the Central Govt.
Rental Income from NTPC Limited 14.58 - The above transactions with the government related entities cover transactions that are significant individually and collectively. The
Group has also entered into other transactions such as administrative expenses, expenses on Govt. Programmes, etc. with other CPSUs.
Recovery of Expenses incurred in Govt. Programmes- 0.30 - They are insignificant individually & collectively and hence not disclosed. All transactions are carried out on market terms.
NTPC Limited
Recovery of Expenses incurred in Govt. Programmes- SJVNL 0.30 - 54 Disclosures in respect of Ind AS 116 ‘Leases’
Finance Cost on bonds of the company- NHPC Limited - 0.35 During the year ended 31st March, 2023, the expenses relating to short-term leases are ₹6.96 crores (previous year ₹6.21 crores). The
Dividend Income on equity shares of NHPC Limited - 4.13 total cash outflow towards all leases, including Right-of-Use Assets is ₹6.97 crores. (previous year ₹6.23 crores).
Set out below are the carrying amounts of lease liabilities (included under borrowings) and the movements during the year:
53.5 Terms and conditions of transactions with related parties
(₹ in Crores)
The transactions with the related parties are being made at arm’s length basis. The remuneration and the staff loans & advances to Key
Managerial Personnel are in line with the service rules of the Company. The finance costs paid to the related parties are on account of Particulars Year ended 31.03.2023 Year ended 31.03.2022
their investments in the debt securities of the Company. The interest rate payable on such debt securities is uniformally applicable to Opening Balance 0.03 0.05
all the bondholders. The Company also makes advances to its subsidiary company on account of apportionment of establishment and Finance Cost accrued during the year - -
administrative expenses, which are recovered on quarterly basis. Even while the outstanding balances of subsidiary company at the
year-end are unsecured, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. Payments made during the year (0.01) (0.02)
This assessment is made on the basis of short-term realisation of the advances so given. Closing Balance 0.02 0.03
53.6 Managerial Remuneration The table below provides details regarding the contractual maturities of undiscounted lease liabilities:
The details of remuneration to Key Managerial Personnel (KMP) during the year is as below: (₹ in Crores)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Upto 1 year 0.02 0.02
(i) Short-term employee benefits 2.65 2.91 1-5 years - 0.02
(ii) Post employment benefits 0.19 0.14 More than 5 years - -
Total 2.84 3.05 55 Disclosures for Employee Benefits as required under Ind AS 19 ‘Employee Benefits’:
As the liabilities for the gratuity and compensated absence are provided on an actuarial basis for the Company as a whole rather than each individual
55.1 Defined Contribution Plans
employee, the amounts pertaining specifically to KMP are not known and hence, not included in the above table. Gratuity and compensated absence, are
included based on actual payment in respective year based in the above table. A. Provident Fund
53.7 Disclosure in respect of entities under the control of the same government (Government related entities) The Company pays fixed contribution of Provident Fund at pre-determined rates to a separate registered trust which invests the funds
in permitted securities. The trust must declare the rate of interest on contribution to the members based upon the returns earned on
List of Government related entities its investments during the year, subject to minimum interest rate prescribed by Employees’ Provident Fund Organisation. Any shortfall
Entities/ Companies in the Group are Central Public Sector Undertaking (CPSU) controlled by Central Government. List of Government for payment of interest to members as per specified rate of return has to be compensated by the Company. The Company estimates
related entities with which the Group has done transactions, includes but not limited to: that no liability will arise in this regard in the near future and hence, no further provision is considered necessary.
Bihar Grid Company Ltd. Power Grid Corporation of India Ltd.
Damodar Valley Corporation Broadcast Engineering Consultants India Ltd. B. Defined Contribution Superannuation Scheme
Nabinagar Power Generating Co. Pvt. Ltd. India Tourism Development Corporation Ltd.
The Company pays fixed contribution towards superannuation scheme at pre-determined rates to NPS Trust which invests the funds
Neyveli Uttar Pradesh Power Ltd Balmer Lawrie & Co. Ltd. in the permitted securities. The balance with the NPS Trust/ separate trust includes the monthly contributions in the members’ account
NTPC Tamil Nadu Energy Company Ltd. Mahanagar Telphone Nigam Ltd. along with the accumulated returns. When the pension becomes payable to the member, the amount standing to the credit of the
Patratu Vidut Utpadan Nigam Ltd. National Informatic Centre Services Inc.(NICSI) member is appropriated towards the member’s accumulation and annuities, as opted for by the member is allotted.
THDC India Ltd. MSTC Ltd.
The Company has recognised an expense of ₹13.4 crores (previous year ₹11.18 crores) towards defined contribution plans
SJVN Thermal Pvt. Ltd. WAPCOS Ltd.
NHPC Ltd. Power Foundation of India
254 255
55.2 Defined Benefit Plans - Post-Employment Benefits Movement in net defined benefit (asset)/ liability
(₹ in Crores)
A. Gratuity
Particulars Defined Benefit Fair Value of Plan Assets Net Defined Benefit
The Company has a defined gratuity scheme which is managed by a separate trust. Every employee who has rendered continuous Obligation (Asset)/ Liability
service of five years or more is entitled to gratuity at 15 days salary for each completed year of service subject to a maximum of ₹ 0.20 Year ended Year ended Year ended Year ended Year ended Year ended
crores on superannuation, resignation, termination, disablement or on death, considering the provisions of the Payment of Gratuity 31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
Act, 1972, as amended. The liability of Gratuity is recognized on the basis of actuarial valuation. Opening Balance 165.51 151.69 164.80 144.06 0.71 7.63
Net Defined Benefit (Asset)/ Liability Included in profit or loss
(₹ in Crores) Current service Cost 3.64 3.29 - - 3.64 3.29
Particulars As at 31.03.2023 As at 31.03.2022 Past service cost - 2.50 - - - 2.50
Present value of Defined benefit obligation 29.23 30.43 Interest cost / income 11.83 10.31 12.15 10.07 (0.32) 0.24
Fair Value of Plan Assets 26.55 30.09 Total amount recognised in profit or loss 15.47 16.10 12.15 10.07 3.32 6.03
Net Defined Benefit (Asset)/ Liability 2.68 0.34 Included in OCI
Re-measurement loss (gain)
Movement in net defined benefit (asset)/ liability
- Actuarial loss (gain) arising from changes 1.45 (4.08) - - 1.45 (4.08)
(₹ in Crores) in financial assumptions
Particulars Defined Benefit Fair Value of Plan Net Defined Benefit - Actuarial loss (gain) arising from changes - 3.75 - 3.75
Obligation Assets (Asset)/ Liability in demographic assumptions
Year ended Year ended Year ended Year ended Year ended Year ended -Actuarial loss (gain) arising from Experience (5.71) 10.58 - - (5.70) 10.59
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 adjustments
Opening Balance 30.43 32.44 30.09 30.25 0.34 2.19 Return on plan assets excluding interest income - - 2.04 2.90 (2.04) (2.90)
Total amount recognised in OCI (4.26) 10.25 2.04 2.90 (6.29) 7.36
Included in profit or loss
Contribution by participants 0.11 0.15 0.10 0.06 0.01 0.09
Current service Cost 1.42 1.79 - - 1.42 1.79
Contribution by employers - - 0.69 7.71 (0.70) (7.72)
Past service cost 2.16 - - - 2.16 -
Benefits paid (12.16) (12.68) - - (12.16) (12.68)
Interest cost / income 2.07 2.17 2.22 2.11 (0.15) 0.06
Closing Balance 164.67 165.51 179.78 164.80 (15.11) 0.71
Total amount recognised in profit or loss 5.65 3.96 2.22 2.11 3.43 1.85
Included in OCI C. Economic Rehabilitation Scheme (ERS)
Re-measurement loss (gain) The Company has an Economic Rehabilitation Scheme (ERS) to support the family financially in case of permanent disability/ death of
an employee during the service tenure. This scheme is unfunded and the liability is determined based on actuarial valuation.
- Actuarial loss (gain) arising from changes in 0.10 (0.65) - - 0.10 (0.65)
financial assumptions Net Defined Benefit (Asset)/ Liability for ERS
-Actuarial loss (gain) arising from Experience (1.09) (0.29) - - (1.09) (0.29) (₹ in Crores)
adjustments Particulars As at 31.03.2023 As at 31.03.2022
Return on plan assets excluding interest income - - (0.29) (0.18) 0.29 0.18 Present value of Defined benefit obligation
Total amount recognised in OCI (0.99) (0.94) (0.29) (0.18) (0.70) (0.76) - ERS 4.17 4.15
Contribution by employers - - 0.39 2.94 (0.39) (2.94) Movement in net defined benefit (asset)/ liability for ERS
Benefits paid (5.86) (5.03) (5.86) (5.03) - - (₹ in Crores)
Closing Balance 29.23 30.43 26.55 30.09 2.68 0.34 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Opening Balance 4.15 4.13
B. Post Retirement Medical Facility (PRMF)
Included in profit or loss
The Company has Post Retirement Medical Facility under which the entitled retired employees and their dependent family members Current service Cost 0.25 0.20
are covered as per Company Rules. The scheme is funded by the Company and is managed by separate trust. The liability towards the Interest cost / income 0.28 0.26
same is recognized on the basis of actuarial valuation.
Total amount recognised in profit or loss 0.53 0.46
Net Defined Benefit (Asset)/ Liability Included in OCI
(₹ in Crores) - Actuarial loss (gain) arising from changes in financial 0.07 (0.06)
Particulars As at 31.03.2023 As at 31.03.2022 assumptions
-Actuarial loss (gain) arising from Experience adjustments 0.33 0.89
Present value of Defined benefit obligation 164.67 165.51
Total amount recognised in OCI 0.40 0.83
Fair Value of Plan Assets 179.78 164.80
Benefits paid (0.91) (1.27)
Net Defined Benefit (Asset)/ Liability (15.11) 0.71 Closing Balance 4.17 4.15
256 257
55.2.1 Risk exposure 55.2.4 Sensitivity Analysis
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
(i) Asset volatility would have affected the defined benefit obligation by the amounts shown below:
(₹ in Crores)
Most of the plan asset investments are in government securities, other fixed income securities with high rating grades and mutual funds.
The fair value of these assets is subject to volatility due to change in interest rates and other market and macro-economic factors. Particulars As at 31.03.2023 As at 31.03.2022
Increase Decrease Increase Decrease
(ii) Changes in discount rate
Discount rate (0.50% movement)
The present value of defined benefit plan liabilities is calculated using a discount rate which is determined by reference to market
- Gratuity (0.84) 0.91 (0.80) 0.85
yields at the end of the reporting period. A decrease in discount rate will increase present values of defined benefit obligations,
although this will be partially offset by an increase in the value of the plans’ investments. - PRMS (12.10) 12.60 (12.16) 12.66
(iii) Longevity risk - ERS (0.15) 0.17 (0.15) 0.17
Salary Escalation Rate (0.50% movement)
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants
both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability. - Gratuity 0.21 (0.18) 0.19 (0.21)
- PRMS - - - -
(iv) Salary risk
- ERS 0.15 (0.14) 0.15 (0.14)
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an
Medical inflation Rate (0.50% movement)
increase in the salary of the plan participants will increase the plan’s liability.
- PRMS 11.62 (10.52) 11.68 (10.57)
(v) Employee Turnover/ Withdrawl risk
Medical Cost (10% movement)
The present value of the defined benefit plan liability is calculated by reference to the expected withdrawl rate in the future. As such, - PRMS 16.89 (16.19) 16.98 (16.28)
if the actual withdrawal rate in the future turns out to be more or less than expected then it may result in increase in the plan’s liability.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
55.2.2 Plan Assets unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
The fair value of plan assets at the end of reporting period for each category, are as follows:
The Company actively monitors how the duration and expected yield of investments are matching the expected cash outflows arising
(₹ in Crores)
from employee benefit obligations. Investments are well diversified, such that the failure of any single investment would not have a
Particulars Gratuity PRMF material impact on overall level of assets. There has been no change in the process used by the Company to manage its risks from prior
As at 31.03.2023 As at 31.03.2022 As at 31.03.2023 As at 31.03.2022 periods.
Cash & Cash Equivalents 0.06 0.38 0.20 0.11
55.2.5 Expected maturity analysis of the defined benefit plans in future years
Quoted Plan Assets
(₹ in Crores)
Equity Instruments 0.99
State Government Debt Securities 10.28 40.80 22.58 Particulars Gratuity PRMF ERS
Corporate Bonds/ Debentures 9.35 - 138.78 142.11
As at As at As at As at As at As at
Sub-total - Quoted Plan Assets 20.62 - 179.58 164.69
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
Unquoted Plan Assets
Others - Insurer managed funds & T-bills 5.87 29.71 - - Less than 1 year 6.43 4.71 13.98 14.02 1.12 1.11
Sub-total - Unquoted Plan Assets 5.87 29.71
Total 26.55 30.09 179.78 164.80 From 1 to 5 years 16.12 17.61 78.64 83.46 2.33 3.60
Actual return on plan assets is ₹16.12 crores (previous year ₹14.90 crores).
Beyond 5 years 35.29 32.92 306.56 327.63 3.11 4.74
55.2.3 Significant Actuarial Assumptions Total 57.84 55.24 399.18 425.11 6.56 9.45
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at
55.2.6 Expected contribution for the next year
31st March, 2023 by M/s Transvalue Consultants. The present value of the defined benefit obligation, and the related current service
cost and past service cost, were measured using the projected unit credit method (PUCM). The principal assumptions used for actuarial (₹ in Crores)
valuations are:- Particulars Gratuity PRMF ERS
(₹ in Crores)
Particulars Gratuity PRMF ERS Year ended Year ended Year ended Year ended Year ended Year ended
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
Year ended Year ended Year ended Year ended Year ended Year ended
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 Expected contribution 3.77 1.76 - 4.35 - -
Method Used PUCM PUCM PUCM PUCM PUCM PUCM The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 11.18 years (as at 31.03.2022 - 12.20 years).
Discount Rate & Expected Return on Plan 7.31% 7.37% 7.31% 7.37% 7.31% 7.37%
Assets, if funded 55.3 Other Long-term Employee Benefits
Future Salary Increase / medical inflation 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
55.3.1 Earned Leave and Half Pay Leave
Expected average remaining working 17.72 17.35 17.72 17.35 17.72 17.35
lives of employees (years) The Company provides for earned leave benefit and half-pay leave benefit to the credit of the employees, which accrues on half-yearly
The principal assumptions are the discount rate, salary growth rate and expected average remaining working lives of employees. The basis at 15 days and 10 days respectively. A maximum of 300 days of earned leave can be accumulated at any point of time during
discount rate is generally based on the market yields available on govt. bonds at the reporting date with a term that matches the the service, while there is no limit for accumulation of half pay leave. Total expenses amounting to ₹ 4.77 crores (Previous year ₹ 8.98
liabilities and the salary growth rate takes account of inflation, seniority, promotions and other relevant factors as long term basis. The crores) have been made towards these employee benefits and debited to the Statement of Profit and Loss on the basis of actuarial
above information is certified by the Actuary. valuation.
258 259
55.3.2 Other employee benefits 59.1 Information about Revenue from major products and services
(₹ in Crores)
Expenses towards long service award and settlement allowance amounting to ₹0.47 crores (previous year Nil) have been debited to
the Statement of Profit and Loss on the basis of actuarial valuation. Particulars Year ended 31.03.2023 Year ended 31.03.2022
55.4 Employee benefits including Gratuity, PRMF, Terminal Benefits, leave encashment and other employee benefits in respect of Company’s (A) Income from Loan Assets 38,701.63 38,522.97
employees working in its wholly-owned subsidiary on deputation / secondment basis, are being allocated based on a fixed percentage
(B) Fee for Implementation of Govt. Schemes 122.21 15.23
of employee cost.
(C) Income from Treasury Operations 297.20 227.86
56 Status of Documentation Subsequent to Unbundling of SEBs
Total 39,121.04 38,766.06
Some of the erstwhile State Electricity Boards (SEBs) against whom loans were outstanding or on whose behalf guarantees were given,
were restructured by the respective State Governments and new entities were formed in the past. Consequently, the liabilities of the 59.2 The Company does not have any reportable geographical segment as the lending operations of the Company are carried out within
erstwhile SEBs stand transferred to new entities. the country.
Status of Documentation Subsequent to Reorganisation of the State of Jammu & Kashmir 59.3 No single borrower has contributed 10% or more to the Company’s revenue during the financial year 2022-23 and 2021-22
After the bifurcation of the State of Jammu & Kashmir into two Union Territories (UTs) – Jammu & Kashmir UT and Ladakh UT, the 60 Amounts expected to be recovered/ settled within 12 months and beyond for each line item under asset and liabilities
existing entities pertaining to the erstwhile state of J&K have been restructured vide unbundling order dated 23rd October 2019. The (₹ in Crores)
addendums to the agreements with new restructured departments are yet to be executed. Pending the execution of such documentation,
the existing loans for Generation, T&D and Govt. schemes are being serviced / repaid in line with the existing loan agreements. Particulars As at 31.03.2023 As at 31.03.2022
Status of Documentation Subsequent to Reorganisation of the State of Andhra Pradesh Within More than Within More than
12 months 12 months 12 months 12 months
Subsequent to the reorganisation of erstwhile State of Andhra Pradesh, the state of Telangana has been formed on 2nd June 2014.
ASSETS
However, the assets and liabilities are yet to be transferred to the respective power utilities through a formal Gazette Notification.
(1) Financial Assets
Status of Documentation is as under:
(a) Cash and cash equivalents 39.00 - 126.40 -
(i) Where ever the loans have been sanctioned to erstwhile APCPDCL, APNPDCL and APGENCO prior to bifurcation and documentation
has not been done, these schemes have been re-sanctioned in the name of newly formed utilities and documentation formalities (b) Bank balances other than (a) above 1,948.34 - 2,295.30 -
completed and accordingly the charge has been registered with the Ministry of Corporate Affairs (MCA). (c) Derivative financial instruments 2,331.97 6,649.64 343.37 5,166.80
(ii) Where ever the loans sanctioned in the name of erstwhile APCPDCL, APNPDCL prior to bifurcation and documentation (d) Loans 65,372.90 356,711.01 39,144.60 332,785.94
formalities completed and drawls have been made, in these schemes an undertaking has been obtained from the name (e) Investments 46.23 3,091.75 61.28 2,096.69
changed / newly formed utility and disbursements have been made to the newly formed utility by changing the name of the
borrower in the name of new / name changed utility. (f ) Other financial assets 257.00 24,143.28 255.77 24,141.17
(iii) Where ever the Loan is sanctioned in the name of erstwhile APCPDCL, APNPDCL prior to bifurcation and documentation Total - Financial Assets (1) 69,995.44 390,595.68 42,226.71 364,190.61
formalities completed with Government Guarantee and drawls have been made, further documentation for these schemes (2) Non-Financial Assets
shall be done on Gazette Notification.
(a) Current tax assets (net) - 295.78 - 179.64
(iv) Once the final transfer scheme is notified through Gazette Notification by Govt, duly indicating the transfer of assets and (b) Deferred tax assets (net) - 3,276.99 - 3,134.74
liabilities among the power utilities, action for execution of documentation formalities will be taken up in respect of all the
outstanding loans with the new / name changed utilities. Till that time, the demand for payment of interest / principal is being (c) Investment Property - - - -
segregated by the Utilities and the respective portions are being paid by Utilities in Telangana and Andhra Pradesh. (d) Property, Plant & Equipment - 638.91 - 623.67
57 Modifications in the Significant Accounting Policies (e) Capital Work-in-Progress - 2.72 - 6.07
(f ) Other Intangible Assets - 1.62 - 4.25
The policy on lease accounting has been added. Further, certain accounting policies have also been reworded to bring in more clarity
and align with Company’s practice. There is no financial impact of such modifications carried out in the accounting policies. (g) Other non-financial assets 62.39 7.26 37.87 8.19
Total - Non-Financial Assets (2) 62.39 4,223.28 37.87 3,956.56
58 Provisions, Contingencies and Impairment loss allowances debited to Standalone Statement of Profit and Loss
(₹ in Crores) (3) Assets classified as held for sale 0.34 - 0.86 -
Total ASSETS (1+2+3) 70,058.17 394,818.96 42,265.44 368,147.17
LIABILITIES
(i) Impairment Loss Allowance for loans* 105.14 3,434.36
(1) Financial Liabilities
(ii) Impairment Loss Allowance for Investments - 28.72
(a) Derivative financial instruments 63.11 913.84 18.89 534.25
(iii) Impairment Loss Allowance for Other Receivables 9.77 10.23
(b) Debt Securities 39,879.40 197,069.59 29,639.43 189,994.14
(iv) Provision made for Income Tax 2,684.13 2,378.98 (c) Borrowings (other than debt securities) 40,338.84 96,775.29 22,529.92 84,121.67
* includes ₹ -5.03 crores (Previous year ₹ 11.81 crores) towards impairment allowance on Letter of Comfort.
(d) Subordinated Liabilities 2,796.90 3,976.40 296.95 6,519.52
59 The Company’s operation comprise of only one business segment - lending to power, logistic and infrastructure sector. Hence, there (e) Other financial liabilities 1,065.28 24,109.30 1,466.54 24,109.30
is no other reportable segement in terms of Indian Accounting Standard (Ind-AS) 108 “Operating Segments”. Based on “management
approach” as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company’s performance based on analysis of Total - Financial Liabilities (1) 84,143.53 322,844.42 53,951.73 305,278.88
various factors of one business segment.
260 261
Notes to Accounts REC Limited
Registered Office - Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi - 110003, CIN: L40101DL1969GOI005095
Particulars As at 31.03.2023 As at 31.03.2022 Annexure to be enclosed with Balance Sheet as at 31st March 2023
Within More than Within More than (As prescribed by Reserve Bank of India)
12 months 12 months 12 months 12 months (Particulars as required in terms of Paragraph 19 of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
(2) Non-Financial Liabilities and Deposit taking Company (Reserve Bank) Directions, 2016, in so far as they are applicable to REC Ltd.)
(₹ in Crores)
(a) Current tax liabilities (net) - - 10.25 -
(b) Provisions 60.64 50.30 57.00 47.51
Amount Amount Amount Amount
(c) Other non-financial liabilities 49.21 49.36 52.40 29.24 Outstanding Overdue Outstanding Overdue
Total - Non-Financial Liabilities (2) 109.85 99.66 119.65 76.75 LIABILITIES SIDE:
Total LIABILITIES (1+2) 84,253.38 322,944.08 54,071.38 305,355.63 (1) Loans and advances availed by the NBFC
Previous year figures have been reclassified/ regrouped to conform to the current classification. inclusive of interest accrued thereon but not paid:
61 There are no Off-Balance Sheet SPVs sponsored by the Company, which need to be consolidated as per accounting norms. (a) Debentures/ Bonds :
62 The Company does not have any Overseas Assets in the form of Joint Ventures/Subsidiaries abroad. - Secured 51,646.17 - 40,644.51 -
- Unsecured 193,034.32 - 186,655.90 -
63 The disclosures as required under Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking
Company and Deposit taking Company (Reserve Bank) Directions, 2016 have been made in Note No. 3, 8, 9, 10, 19.1, 26.1, 43, 46, 47.1.3 (b) Term Loans
(N), 47.1.3 (O), 47.1.3 (P), 47.1.3 (R), 47.1.3 (S), 47.1.3 (T), 47.1.3 (U), 47.1.3 (V), 47.2.2, 47.2.4, 47.3, 48, 49, 50, 53, 57, 58, 61, 62, 64, 66. - Secured Loans from Financial Institutions - - - -
64 No penalties have been levied on the Company by any regulator during the year ended 31st March 2023 (previous year Nil). - Unsecured Loans from NSSF 10,325.12 10,325.12
However, during the year, the Company has received notices from the National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE) - Unsecured Loans from Banks 56,402.09 42,919.86
imposing a total fine of ₹0.43 crores (previous year ₹0.76 crores) (inclusive of GST) for non-compliance on the corporate governance - Unsecured Loans from Financial Institutions 6,000.64 6,800.00
requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 regarding the position/quorum requirements (c) Commercial Paper - - - -
of Board/ Committees, due to inadequate number of Independent Directors.
(d) Other Loans
The Company has requested the Stock Exchanges to waive the fine since the power to appoint Independent Directors is vested with - Foreign Currency Borrowings 45,783.55 - 35,687.77 -
President of India through the administrative Ministry as per Articles of Association of the Company and the Board of Directors or
the Company cannot appoint Independent Directors on the Board of the Company. As such, there is no violation on the part of the - FCNR (B) Loans 15,427.63 - 9,861.13 -
Company in the appointment of Independent Directors. The Company is hopeful of favorable outcome of its request to the Stock - Overdrafts from Bank 87.59 - - -
Exchanges in line with the earlier waivers of fine by BSE for similar reasons and the communication received from NSE to consider - Short Term Loans/ Loans Repayable on Demand 3,607.52 1,415.58
waiver after complying with the requirement.
- Loan repayable on demand from Holding Company - -
65 During the year, the company does not have any transactions with the struck off companies except for equity shares held by five
- Lease Obligations 0.02 0.03
companies as on 31st March, 2023 (as on 31st March, 2022- five numbers), which are individually not material and thus have not been
reported. (₹ in Crores)
66 No complaints have been received by the company from the customers or Offices of Ombudsman during the year ended 31 March st
2023 (previous year Nil). ASSETS SIDE :
67 Figures in Rupees have been rounded off to the nearest crores with two decimals, unless expressly stated. (2) Break-up of Loans and Advances including bills receivables
The Notes to Accounts 1 to 67 are an integral part of the Standalone Financial Statements. (a) Secured 223,195.81 213,512.93
For and on behalf of the Board (b) Unsecured 197,552.23 157,153.67
(3) INVESTMENTS :
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan Current Investments:
Quoted:
DIN - 06629871 DIN - 01377212
(i) Shares : Equity 27.31 49.52
In terms of our Audit Report of even date Unquoted:
(i) Shares : Equity 174.05 -
(ii) Debentures and Bonds 230.82 238.76
Chartered Accountants Chartered Accountants Long Term Investments:
Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091 Quoted:
S. Murthy Atul Aggarwal
Partner Partner (ii) Debentures and Bonds 1,066.30 226.82
M.No. : 072290 M.No. : 092656 (iii) Government Securities 1,431.74 1,374.51
Unquoted:
Place: Mumbai
(i) Shares : Equity 140.53 214.84
Date: 17th May 2023
262 263
(4) Borrower Group-wise classification of assets financed in (2) above : Independent Auditors’ Report
(₹ in Crores)
Particulars AMOUNT NET OF PROVISIONS To the Members of
Secured Unsecured Total REC Limited
As at 31.03.2023
Report on the Audit of Standalone Ind AS Financial Statements
1. Related Parties - - -
2. Other than Related Parties 223,195.81 197,552.23 420,748.04 Opinion
Total 223,195.81 197,552.23 420,748.04
As at 31.03.2022 We have audited the standalone Ind AS financial statements of REC Limited (“the Company”) which comprise the Balance Sheet as at 31st
March, 2023, and the Statement of Profit and Loss (including Other Comprehensive Income) and the Statement of Change in Equity and the
1. Related Parties - - -
Statement of Cash Flows for the year then ended and notes to the standalone Ind AS financial statements including a summary of significant
2. Other than Related Parties 213,512.93 157,153.67 370,666.60 accounting policies and other explanatory information (hereinafter referred to as “the Standalone Ind AS Financial Statements”).
Total 213,512.93 157,153.67 370,666.60
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial
(5) Investor group-wise classification of investments (current and long term) in shares and securities (both quoted and unquoted) : statements give the information required by the Companies Act, 2013, (“the Act”)in the manner so required and give a true & fair view in
conformity with the accounting principles generally accepted in India, of the state of the affairs of the Company as at 31st March 2023, and its
(₹ in Crores)
Profit (including other comprehensive income), changes in equity and cash flow for the year ended on that date.
Category As at 31.03.2023 As at 31.03.2022
Market Value / Book Value (Net of Market Value / Book Value (Net of Basis for Opinion
Break up or fair Provisions) Break up or fair Provisions)
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Act. Our responsibilities
value or NAV value or NAV
under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements section
1. Related Parties of our report. We are independent of the Company, in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of
(a) Subsidiaries 0.10 0.10 0.10 0.10 India together with the ethical requirements that are relevant to our audit of the standalone Ind AS financial statements under the provisions
2. Other than Related Parties 3,137.62 3,137.88 2,176.58 2,157.87 of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
Total 3,137.72 3,137.98 2,176.68 2,157.97 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
(6) Other Information Emphasis of matter

(₹ in Crores)
We draw attention to Note No. 47.1.3 to the standalone Ind AS Financial Statements regarding the provision of impairment allowance in
Particulars As at 31.03.2023 As at 31.03.2022 respect of its loan assets and Letters of Comfort. In this regard, we have relied upon the basis of determination of impairment allowance in so
(i) Gross Credit-impaired Assets far as it relates to technical aspects/parameters considered by independent agency and management judgement for ascertaining impairment
(a) Related Parties - - allowance as management overlay.
(b) Other than related Parties 14,892.08 17,159.89
Our opinion is not modified in respect of above matter.
(ii) Net Credit-impaired Assets
(a) Related Parties - - Key Audit Matters
(b) Other than related Parties 4,372.57 5,594.16
Key audit matters (“KAM”) are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind
(iii) Asset acquired in satisfaction of debts 233.85 -
AS financial statements of the current period. These matters were addressed in the context of our audit of the standalone Ind AS Financial
Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined
the following matters described below to be the key audit matters to be communicated in our report:
ED & Company Secretary Director (Finance) Chairman & Managing Director S. No. Key Audit Matter Auditor’s Response
1. Impairment allowance of Loan Assets – We have applied following audit procedures in this regard
In terms of our Audit Report of even date (Refer Note No. 47.1.3 to the Standalone Ind AS Financial a). According to the provisions of Ind AS 109 “Financial Instruments”,
Statements read with accounting policy No. 3.11) we have obtained the report of the external agency and verified
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. the criterion/framework with various regulatory updates
The Company follows a Board approved methodology
Chartered Accountants Chartered Accountants alongwith Company’s internal guidelines and procedures in
wherein assessment for allowance is carried out by
an external agency for impairment based on certain respect of the impairment allowance.
S. Murthy Atul Aggarwal criterion/framework classifying the assets into various b) Verification of loan assets on test check basis covering substantial
Partner Partner stages depending upon credit risk and level of evidence part of total loans with respect to monitoring thereof for recovery/
M.No. : 072290 M.No. : 092656
of impairment. performance aspects and assessment of the loan impairment
Place: Mumbai Impairment allowance is measured as product of the considering management perception on the same.
Date: 17th May 2023
Probability of Default, Exposure at Default and Loss c) Recoveries are verified applying the standard audit procedures
Given Default being the key parameters for assessing the to ascertain level of stress. Loan balances are confirmed and
impairment allowance. quality of the borrower is evaluated and tested with key control
parameters.
264 265
S. No. Key Audit Matter Auditor’s Response As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
The key indicators underlying for assessment of d) Assessment of impairment based upon performance of the loan • Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error,
impairment allowance are appraised on an ongoing basis assets is carried out on the basis of relevant evidence on record design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
by the management. provided to us. a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
Further the management has adopted a methodology e) We have discussed with the management wherever underlying error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
which in addition to the model adopted as above is further weakness is observed and management assessment is carried out • Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedure that are appropriate in
analyzed on case-to-case basis and wherever impairment in detail in such cases. the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
impact needs to be changed the same is considered in the f ) Components and calculations in the study for impairment adequate internal financial controls system in place and the operating effectiveness of such controls.
financial statements. allowance carried out by external agency are relied upon by us
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
In view of the significance of the amount of loan assets and test checks are carried out for the same. Such components
disclosures made by management.
in the standalone Ind AS Financial Statements i.e 90.79 are credit rating of borrowers (including ratings issued by Ministry
% of total assets, the audit procedure for impairment of of Power), calculation of probability of default/loan given defaults • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
loan assets has been considered as Key Audit Matter in our etc. Our audit procedure in the same are limited in view of reliance obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s
audit. on report of the external agency. ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
g) Further, the Management, pursuing a Board approved auditor’s report to the related disclosures in the standalone Ind AS financial statements or, if such disclosures are inadequate, to
methodology reviews the impairment allowance in the report of modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
the external agency and enhanced/reduced the impairment on events or conditions may cause the Company to cease to continue as a going concern.
case to case basis as management overlay. We have obtained a • Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and
detailed analysis from the management for such changes. Our
whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair
audit procedure in this regard is constrained by the management
presentation.
appraisal and we have relied upon the same.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the
Information Other than the Standalone Ind AS Financial Statements and Auditor’s Report thereon economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality
and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
The Company’s Board of Directors are responsible for the other information. The other information comprises the Directors’ report, Corporate
identified misstatements in the financial statements.
Governance report, Business responsibility report and Management Discussion and Analysis etc. in the Annual report but does not include
the standalone Ind AS financial statements and our report thereon. Such other information is expected to be made available to us after the We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
date of this Auditor’s Report. significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
conclusion thereon. independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone Ind AS From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. of the standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
If, based on the work we have performed, we conclude that there is a material misstatement therein, we are required to communicate the
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
matter to those charged with governance.
outweigh the public interest benefits of such communication.
Management’s Responsibility for the Standalone Ind AS Financial Statements
Report on Other Legal and Regulatory Requirements
The Company’s management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the order”), issued by the Central Government of India in terms of
preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance
sub-section (11) of section 143 of the Act, and on the basis of such checks of the books and records of the company as we considered
(including other comprehensive income), changes in equity and cash flows of the Company in accordance with the accounting principles
appropriate and according to the information and explanation given to us, we give in the Annexure-A, a statement on the matters
generally accepted in India, including Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
specified in paragraph 3 and 4 of the Order, to the extent applicable.
Accounting Standards) Rules, 2015, as amended (“Ind AS”). This responsibility also includes maintenance of adequate accounting records
in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and 2. On the basis of information and explanations given to us by the company we are enclosing our report in Annexure-B on the directions/
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and sub-directions issued by Comptroller and Auditor General of India in terms of Section 143(5) of the Act.
prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring
3. As required by section 143(3) of the Act, we report that:
the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit.
In preparing the standalone Ind AS financial statements, management and Board of Directors are responsible for assessing the Company’s
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
examination of those books.
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in
The Board of Directors is also responsible for overseeing the Company’s financial reporting process. Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.
Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS specified under Section 133 of the
Act read with relevant rules.
Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level e) Vide Notification No. G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, Government Companies have
of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. been exempted from applicability of the provisions of Section 164(2) of the Companies Act, 2013.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected f) With respect to the adequacy of the internal financial controls over financial reporting of the company and operative
to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements. effectiveness of such controls , refer to our separate report in “Annexure-C”;
266 267
g) Pursuant to Notification no. GSR463(E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, provisions of Section Annexure-A to the Independent Auditor’s Report
197 of the Act are not applicable to the government companies.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit Referred to in Paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date on the
and Auditors) Rules, 2014 as amended, in our opinion and to the best of our information and according to the explanations accounts of REC Limited for the Year ended on 31st March 2023.
given to us: To the best of our information and according to the explanations provided to us by the Company and the books of account and records
(i) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial examined by us in the normal course of audit, we state that:
statements - Refer Note 42 to the standalone Ind AS financial statements; i. In respect of the Company’s Property, Plant and Equipment and Intangible Assets:
(ii) According to the information and explanations given to us the Company did not have any long term contracts including (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant
derivative contracts for which there are any material foreseeable losses; and Equipment and relevant details of right of use asset.
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection (B) The Company has maintained proper records showing full particulars of intangible assets.
Fund by the Company.
(b) The Company has a program of physical verification of Property, Plant and Equipment so as to cover all the assets in phased manner
(iv) (a) The Management has represented (refer Note 9.5) that, to the best of its knowledge and belief, no funds (which which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. According to the information
are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed and explanations given to us, no material discrepancies were noticed on such verification.
funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity,
(c) Based on our examination of the records of the company we report that title deeds of all the immovable properties (other than
including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the
properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in the
Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner financial statements included under Property, Plant and Equipment are held in the name of the Company except for the following.
whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries ; (₹ in Crores)
(b) The Management has represented (refer Note 9.5), that, to the best of its knowledge and belief, no funds (which Description of Gross Held in the name of Whether Period Reason for not being held in name of
property carrying Promoter, held since Company
are material either individually or in the aggregate) have been received by the Company from any person or entity,
value Director or
including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that their relative or
the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner employee
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like Building 4.59 Land & Development officer No 1990 Due to Pending formalities from Land
on behalf of the Ultimate Beneficiaries; under Ministry of Urban & Development Officer. Office building
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing Development, New Delhi allotted to the company at the SCOPE
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) (a central government Complex) has
not been registered in the name of the
of the Companies (Audit and Auditors) Rules, 2014 as amended and provided under (a) and (b) above, contain any
Company.
material misstatement.
(d) The Company has not revalued any of its Property, Plant and Equipment (including right-of-use assets) and intangible assets during
(v) The interim dividend declared and paid during the year by the company till the date of this report is in compliance with the year.
section 123 of the Companies Act, 2013
(e) As informed to us, no proceedings have been initiated during the year or are pending against the Company as at March 31, 2023 for
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with respect to using accounting software for maintaining holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.
its books of account which has certain features e.g. edit log etc. as enumerated in aforesaid proviso is applicable to
the Company with effect from 1st April 2023. Therefore, reporting under Rule 11(g) of Companies (Audit and Auditors) ii. (a) The Company does not have any inventory and hence reporting under clause 3(ii)(a) of the Order is not applicable.
Rules, 2014 is not applicable for the financial year ended 31st March 2023. (b) We have been informed that the company has been sanctioned unsecured working capital limits in excess of five crore rupees
during the year, in aggregate, from Banks. Since, the limits have been sanctioned as unsecured, reporting under clause 3(ii) (b)
of the Order is not applicable
M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP. iii. During the year the Company has made investments in, provided guarantees and granted loans/advances in the nature of loans,
Chartered Accountants, Chartered Accountants, secured/unsecured to companies, firms, Limited Liability Partnerships or any other parties., In this regard we report hereunder:
ICAI Firm Registration: 001135N ICAI Firm Registration: 000018N/N500091
(a) The company is a registered NBFC with Reserve Bank of India with principal business of giving loans hence clause 3(iii)(a) of the Order
Name : S. Murthy Name : Atul Aggarwal is not applicable, .
Designation : Partner Designation : Partner
(b) In our opinion, the investments made, guarantees provided and the terms and conditions of the grant of all loans and advances in the
Membership Number : 072290 Membership Number : 092656
nature of loans and guarantees provided, during the year are, prima facie, not prejudicial to the Company’s interest.
UDIN : 23072290BGYVDK8429 UDIN : 23092656BGUFNH3625
(c) Being a registered Non-Banking Financial Company (NBFC), the company grants its loans on stipulated terms and conditions for
Place : Mumbai repayment of principal and interest. In respect of Loan assets except credit impaired assets, the repayments of principal amounts and
Date : 17th May 2023 receipts of interest are generally regular as per stipulation.
(d) We report that for provisioning on a credit impaired loan asset as Expected Credit Loss (ECL), a Board approved methodology is
followed. The delay in repayments for more than 90 days from the stipulated due date results in classification of account as credit
impaired. Overdue amounts for more than 90 days as at the end of the year are as under. Further, the company takes steps for recovery
of the principal and interest as per its defined procedures which in our opinion are reasonable.
(₹ in Crores)
No. of cases Principal Amount Interest Overdue* Total Overdue Remarks (if any)
Overdue
19 7,839.15 20,604.63 28,443.78 -
*The same has not been recognised as income as a matter of prudence as per accounting policies and practices of the Company.
268 269
(e) Reporting under clause 3(iii)(e) of the Order is not applicable, since the principal business of the company is to give loans. x. (a) The Company did not raise any money by way of initial public offer or further public offer during the year. We have been informed
(f ) As per the information and explanation provided to us, the company has not granted any loans or advances in the nature of loans and based on our audit procedures, we are of the opinion that money raised by the Company by way of debt instruments and
term loans during the year were applied for the purposes for which it was raised.
either repayable on demand or without specifying any terms or period of repayment during the year under audit. Hence, reporting
under clause 3(iii)(f ) is not applicable. (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company,
the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures
iv. In our opinion and according to information & explanations given to us with respect to the provisions of Section 185 of the Act, the
during the year.
Company has not granted any loan or guarantee covered under Section 185.
xi. (a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally
Further, in our opinion and according to information & explanations given to us, the Company, being a NBFC, is exempt from the
accepted auditing practices in India and according to the information and explanations given to us, we have not come across any
provisions of Section 186 of the Act and the relevant rules in respect of loans and guarantees. In respect of the investments, the instance of any material fraud by the Company or on the Company.
Company has complied with the provisions of section 186 (1) of the Act.
(b) As informed to us no report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed
v. According to the information and explanations given to us, the Company has not accepted any deposits from public to which the under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of
directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies this report.
Act, 2013 and the Rules framed thereunder are applicable.
(c) As informed to us there are no whistle blower complaints received by the Company during the year.
vi. Being an NBFC company, clause 3(vi) of the Order is not applicable regarding maintenance of cost records under Companies (Cost
Records and Audit) Rules, 2014, prescribed by the Central Government under Section 148 of the Companies Act, 2013. xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clauses 3 (xii) (a) to (c)
of the Order are not applicable to the Company.
vii. (a) On the basis of our checks and audit procedures we are of the opinion that the Company is generally regular in depositing undisputed
statutory dues including Goods and Services tax, Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service xiii. According to the information and explanations given to us and on the basis of our examination of the records of the Company,
Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the necessary
authorities. There were no undisputed statutory dues in arrears as at 31st March, 2023 for a period of more than six months from disclosures have been made in the standalone Ind AS financial statements etc., as required by the applicable accounting standards.
the date they became payable. xiv. (a) In our opinion the Company broadly has an adequate internal audit system incommensurate with the size and the nature of its business.
(b) According to the information and explanations given to us and as certified by the management on which we have relied upon, the (b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in
dues of income tax as follows aggregating to ₹29.25 crores have not been deposited on account of dispute/deposited under determining the nature, timing and extent of our audit procedures.
protest and the matters are pending before appropriate authorities as detailed below: xv. In our opinion during the year the Company has not entered into any non-cash transactions with its Directors or persons connected
with its directors, hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
(₹ in Crores)
Name of Statute Nature of Dues Amount Amount Net Assessment Forum where dispute is xvi. (a) We have been informed that the Company is registered as a non-banking finance company under section 45-IA of the Reserve
Disputed paid / refund Amount Year to which pending Bank of India Act, 1934. The registration number issued to the company is 14.000011.
adjusted unpaid the amount (b) According to the information and explanations given to us, the company has not conducted any non-banking financial or housing
(Under relates finance activities without a valid certificate of registration from the Reserve Bank of India as per Reserve Bank of India Act, 1934.
Protest)
(c) According to the information and explanations given to us, the company is not a core investment company (CIC) as defined in
Income Tax Act, 1961 Income tax and interest 0.30 0.30 - 2008-09 Delhi High Court
the regulations made by the Reserve Bank Of India, hence reporting under clause 3 (xvi) (c ) of the order is not applicable.
Income Tax Act, 1961 Income tax and interest 0.32 0.32 - 2012-13 CIT (Appeals), Delhi
Income Tax Act, 1961 Income tax and interest 0.83 0.83 - 2012-13 Delhi High Court (d) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve
Bank) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.
Income Tax Act, 1961 Income tax and interest 87.68 87.68 - 2018-19 CIT (A), NFAC Delhi
Income Tax Act, 1961 Income tax and interest 87.96 58.74 29.22 2019-20 CIT (A), NFAC Delhi xvii. The Company has not incurred cash losses during the financial year covered by our audit and during the immediately preceding
Income Tax Act, 1961 Income tax and interest 20.13 20.13 - 2020-21 CIT (A), NFAC Delhi financial year.
Income Tax Act, 1961 Income tax and interest 1.66 1.66 - 2021-22 CIT (A), NFAC Delhi xviii. There has been no resignation of the statutory auditors of the Company during the year.
Income Tax Act, 1961 TDS 0.03 - 0.03 CPC, TDS (As per TRACES) xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities,
Goods and Services Tax Goods and Services Tax 17.89 17.89 - FY 2017-18 Commissioner (Appeals), other information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and
Act 2017 Paid CGST Delhi Appeals based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe
Total 216.80 187.55 29.25 that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however,
viii As per Information and explanation given to us, there were no transactions relating to previously unrecorded income that have been
state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961).
to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one
ix. (a) As per Information and explanation given to us and based on audit procedures, we are of the opinion that the company has not year from the balance sheet date, will get discharged by the Company as and when they fall due.
defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.
xx. We have been informed that there are no unspent amounts towards Corporate Social Responsibility (CSR) on ongoing projects or
(b) As per Information and explanation given to us, the Company has not been declared willful defaulter by any bank or financial other than ongoing projects. Accordingly, reporting under clause 3(xx)(a) and (b) of the Order is not applicable for the year.
institution or any other lender.
xxi. The clause 3 (xxi) of the order is not applicable to the Standalone Financial Statements, hence no comment is given.
(c) As per Information and explanation given to us, the term loans were applied for the purpose for which the loans were obtained.
M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP.
(d) As per Information and explanation given to us and based on procedures performed by us and on the overall examination of the Chartered Accountants, Chartered Accountants,
financial statements of the Company, the funds raised on short-term basis have, prima facie, have not been used during the year ICAI Firm Registration: 001135N ICAI Firm Registration: 000018N/N500091
for long-term purposes by the Company on overall basis.
Name : S. Murthy Name : Atul Aggarwal
(e) As per Information and explanation given to us, on an overall examination of the financial statements of the Company, the Designation : Partner Designation : Partner
Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries. Membership Number : 072290 Membership Number : 092656
(f ) As per Information and explanation given to us and on an overall examination of the financial statements of the Company, we UDIN : 23072290BGYVDK8429 UDIN : 23092656BGUFNH3625
report that the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures
or associate companies. Place : Mumbai
Date : 17th May 2023
270 271
Annexure-I Annexure-C to the Independent Auditor’s Report
Annexure-B to the Independent Auditor’s Report Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
Referred to in Paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ Section of Our Report of Even Date on the We have audited the internal financial controls over financial reporting of REC Limited the Company as of 31st March 2023 in conjunction with our audit
Accounts of REC Limited for the Year ended on 31st March 2023. of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management’s Responsibility for Internal Financial Controls
Sl. Directions Action Taken Impact on Standalone Ind
No. As Financial Statements The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial
A. Directions reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the
1. Whether the Company has system in place to process all The Company has oracle ERP R12 No impact on the standalone design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient
the accounting transactions through IT system? If yes, version to process all the accounting Ind AS Financial Statements conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,
the implications of processing of accounting transactions transactions through IT system. All the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
outside IT system on the integrity of the accounts along the accounting, including at Regional
with the financial implications, if any, may be stated. and State offices is done through the Auditors’ Responsibility
centralized ERP system. Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our
2. Whether there is any restructuring of an existing loan or There has been no such case and the No impact on the standalone audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards
cases of waiver/write off of debts /loans/interest etc. made company has been regularly servicing Ind AS Financial Statements on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Control and, both issued by the Institute of Chartered Accountants of India. Those Standards
by a lender to the Company due to the Company’s inability its debt and borrowings obligations.
and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
to repay the loan? If yes, the financial impact may be stated. Moreover, the company has properly whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all
Whether such cases are properly accounted for? (In case, accounted for the cases where any material respects.
lender is a Government Company, then this direction is also loans given by the company have been
applicable for Statutory Auditor of lender company). restructured/waived off/written off. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial
reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding
3. Whether funds (grant/subsidy etc.) received/receivable The Company has not received any funds No impact on the standalone of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
for specific schemes from Central/State Government or for specific schemes from central/ state Ind AS Financial Statements operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the
its agencies were properly accounted for/ utilized as per agencies for utilization. However, the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
its term and conditions? List the cases of deviation. company receives funds from government
for its disbursements to various agencies We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal
financial controls system over financial reporting.
as per specified schemes.
Meaning of Internal Financial Controls over Financial Reporting
M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP. A Company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
Chartered Accountants, Chartered Accountants, financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted
accounting principles. A Company’s internal financial control over financial reporting includes those policies and procedures that:
a. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
Name : S. Murthy Name : Atul Aggarwal the Company;
Designation : Partner Designation : Partner b. provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements
Membership Number : 072290 Membership Number : 092656 in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in
UDIN : 23072290BGYVDK8429 UDIN : 23092656BGUFNH3625 accordance with authorizations of management and directors of the Company; and
c. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s
Place : Mumbai assets that could have a material effect on the standalone Ind AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management
Annexure-II override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Compliance Certificate
Opinion
We have conducted the audit of annual accounts of REC Limited for the year ended 31st March 2023 in accordance with direction/sub
directions issued by the C&AG of India under section 143(5) of the Companies Act, 2013 and certify that we have complied with all the In our opinion, the Company has, in all material aspects, an adequate internal financial controls system over financial reporting and such internal
Direction/sub-directions issued to us. financial controls over financial reporting were operating effectively as of 31st March 2023, based on the internal control over financial reporting
criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
Chartered Accountants, Chartered Accountants,
Name : S. Murthy Name : Atul Aggarwal M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP.
Designation : Partner Designation : Partner ICAI Firm Registration: 001135N ICAI Firm Registration: 000018N/N500091
UDIN : 23072290BGYVDK8429 UDIN : 23092656BGUFNH3625 Name : S. Murthy Name : Atul Aggarwal
Place : Mumbai UDIN : 23072290BGYVDK8429 UDIN : 23092656BGUFNH3625
Place : Mumbai
272 273
Non-Banking Financial Companies Auditor’s Report for the year ended 31st March 2023 COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF
The Board of Directors, THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF REC LIMITED FOR THE YEAR ENDED
REC Limited 31 MARCH 2023.
Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi – 110003
The preparation of financial statements of REC Limited for the year ended 31 March 2023 in accordance with the financial reporting framework
We have audited the accompanying standalone financial statements of REC Limited (“the Company”), which comprise the Balance Sheet as prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory auditors appointed
at 31st March 2023, the Statement of Profit and Loss and the Statement of Cash Flows and the Statement of changes in equity for the year by the Comptroller and Auditor General of India under section 139(5) of the Act are responsible for expressing opinion on the financial
ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the statements under section 143 of the Act based on independent audit in accordance with the standards on auditing prescribed under section
standalone financial statements”). 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 17 May 2023.
As required by the “Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016” issued by Reserve Bank of India (RBI) I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of REC Limited
vide notification no. DNBS.PPD.03/66.15.001/2016-17 dated 29th September, 2016 on the matters specified in para 3(A) and 3(C) of Chapter-II for the year ended 31 March 2023 under Section 143(6)(a) of the Act. This supplementary audit has been carried out independently without
of the said Directions to the extent applicable to the company and according to the information and explanations given to us for the purpose access to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel
of audit, we report that: and a selective examination of some of the accounting records.
1. The Company had been granted registration under section 45-IA of the Reserve Bank of India Act, 1934 on 10th February 1998 vide On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or
Certificate of Registration No. 14.000011. RBI issued further Certificate dated 17th September 2010 in lieu of earlier certificate having supplement to statutory auditors’ report under section 143(6)(b) of the Act.
categorized REC Ltd as an Infrastructure Finance Company in terms of instructions contained in RBI Circular CC No. 168 dated 12th
February, 2010. Consequent upon change of name of the Company from Rural Electrification Corporation Limited to REC Limited, RBI
has issued fresh certificate of registration bearing no. 14.000011 dated 28th November 2018 with the name of REC Limited.
2. The company is entitled to continue to hold such registration in terms of its asset/ income pattern as on 31st March 2023. For and on behalf of the
Comptroller & Auditor General of India
3. The Company is meeting the requirement of net owned funds applicable to an Infrastructure Finance Company as laid down in Master
Direction-Non-Banking Financial Company-Systemically Important Non-Deposit taking Company and Deposit taking Company
(Reserve Bank) Direction 2016 dated 1st September 2016
(Sanjay K. Jha)
4. The Board of Directors of the Company, in its meeting held on 21st March 2022, has passed resolution for non-acceptance of any public Director General of Audit (Energy)
deposits for the Financial Year 2022-23.
5. The Company has not accepted any public deposits during the financial year 2022-23. Place : New Delhi
6. The financial statements of the Company for the year 2022-23 have been prepared in accordance with recognition and measurement Dated : 31 July 2023
principles of Ind AS prescribed under section 133 of the Companies Act 2013 read with relevant rules issued thereunder.
Accordingly, the company is following Board Approved methodology for computation of Impairment allowance towards provisioning
for its loan assets and classification thereof. In view of regulatory compliance of Companies Act 2013 for adoption of a mechanism for
preparation of financial statements the Company does not follow the Prudential norms relating to income recognition, accounting
standards, asset classification and provisioning (IRACP norms) for Bad and Doubtful debts in terms of the master directions 2016.
Nevertheless the company is complying with the directions of the RBI vide Notification No. DOR (NBFC).CC.PD.No.109/22.10.106/2019-
20 dated 13th March 2020 with respect to adherence to difference in provisioning between IRACP norms and ECL methodology of the
company.
7. a) In our opinion, the Capital Adequacy ratio as disclosed in the Return submitted to RBI in Form NBS-7 (DNBS03) has been correctly
arrived on the basis of provisional financial statements and such ratio is in compliance with minimum CRAR prescribed by RBI.
b) As per information and explanation given to us, the annual statement of capital funds, risk assets/ exposure and risk asset ratio
(DNBS03 return) as on 31st March 2023 has been filed by company on 13th April 2023 on the basis of the provisional financial results.
Name : S. Murthy Name : Atul Aggarwal
UDIN : 23072290BGYVDM9520 UDIN : 23092656BGUFN17396
Place : Mumbai
274 275
Consolidated Balance Sheet as at 31st March, 2023 Consolidated Statement of Profit and Loss for the period ended 31st March, 2023
Sl. Particulars Note No. As at As at S. Particulars Note No. Year ended Year ended
No. 31.03.2023 31.03.2022 No. 31.03.2023 31.03.2022
ASSETS Revenue from Operations
(1) Financial Assets (i) Interest Income 29 38,846.34 38,194.49
(a) Cash and cash equivalents 6 48.70 140.99 (ii) Dividend Income 30 11.89 4.21
(b) Bank balances other than (a) above 7 2,346.91 2,518.96 (iii) Fees and Commission Income 31 287.17 572.82
(c) Trade receivables 8 113.00 94.55 (iv) Net gain/ (loss) on fair value changes 37 45.31 346.57
(d) Derivative financial instruments 9 8,981.61 5,510.17 (v) Sale of services 32 287.55 150.96
(e) Loans 10 422,083.91 371,930.54 I. Total Revenue from Operations (i to v) 39,478.26 39,269.05
(f ) Investments 11 3,170.00 2,190.44 II. Other Income 33 41.90 70.15
(g) Other financial assets 12 24,422.54 24,415.31 III. Total Income (I+II) 39,520.16 39,339.20
Total - Financial Assets (1) 461,166.67 406,800.96 Expenses
(i) Finance Costs 34 23,733.33 22,050.96
(2) Non-Financial Assets
(ii) Net translation/ transaction exchange loss 35 1,114.04 799.05
(a) Current tax assets (net) 13 305.95 191.56
(iii) Fees and commission Expense 36 16.29 16.73
(b) Deferred tax assets (net) 14 3,307.56 3,160.12
(iv) Impairment on financial instruments 38 142.17 3470.02
(c) Property, Plant & Equipment 15 639.17 624.04
(v) Cost of services rendered 39 54.06 65.11
(d) Capital Work-in-Progress 15 2.72 6.07
(vi) Employee Benefits Expenses 40 204.10 180.84
(e) Other Intangible Assets 15 1.63 4.28 (vii) Depreciation and amortization 41 24.26 18.24
(f ) Other non-financial assets 16 74.40 68.68 (viii) Corporate Social Responsibility Expenses 42 203.91 172.35
Total - Non-Financial Assets (2) 4,331.43 4,054.75 (ix) Other Expenses 43 130.33 123.56
(3) Assets classified as held for sale 17 4.65 4.38 IV. Total Expenses (i to ix) 25,622.49 26,896.86
Total ASSETS (1+2+3) 465,502.75 410,860.09 V. Profit before Tax (III-IV) 13,897.67 12,442.34
LIABILITIES AND EQUITY VI. Share of Profit/Loss of Joint Venture accounted for using equity method - (11.81)
LIABILITIES VII. Profit before Tax (III-IV+VI) 13,897.67 12,430.53
(1) Financial Liabilities VIII. Tax Expense 44
(a) Derivative financial instruments 9 976.95 553.14 (i) Current Tax
(b) Trade Payables - Current Year 2,720.50 3,069.23
(i) total outstanding dues of MSMEs 18 - - - Earlier Years (147.45) (3.96)
(ii) total outstanding dues of creditors other than MSMEs 18 41.68 36.48 (ii) Deferred Tax 157.64 (670.44)
(c) Debt Securities 19 236,902.33 219,574.61 Total Tax Expense (i+ii) 2,730.69 2,394.83
(d) Borrowings (other than debt securities) 20 137,114.13 106,651.59 IX. Profit for the period 11,166.98 10,035.70
(e) Subordinated Liabilities 21 6,773.30 6,816.47 X. Other comprehensive Income/(Loss)
(f ) Other financial liabilities 22 25,345.11 25,708.73 (i) Items that will not be reclassified to profit or loss
Total - Financial Liabilities (1) 407,153.50 359,341.02 (a) Re-measurement gains/(losses) on defined benefit plans (5.99) (8.33)
(2) Non-Financial Liabilities - Tax impact on above 1.51 2.10
(a) Current tax liabilities (net) 23 10.65 10.25 (b) Changes in Fair Value of FVOCI Equity Instruments (58.16) 22.19
(b) Provisions 24 111.62 105.67 - Tax impact on above (0.32) 2.55
(c) Other non-financial liabilities 25 106.45 89.04 (c) Share of Other Comprehensive Income/ (loss) of Joint Venture accounted for using equity method - (0.02)
Total - Non-Financial Liabilities (2) 228.72 204.96 Sub-Total (i) (62.96) 18.49
(3) Liabilities directly associated with assets classified as held for sale 17 0.02 0.01 (ii) Items that will be reclassified to profit or loss
(4) EQUITY (a) Effective Portion of Cash Flow Hedges 542.33 480.84
(a) Equity Share Capital 26 2,633.22 1,974.92 - Tax impact on above (136.49) (121.02)
(b) Instruments Entirely Equity In Nature 27 558.40 558.40 (b) Cost of hedging reserve (1,755.82) (584.51)
(c) Other equity 28 54,928.89 48,780.78 - Tax impact on above 441.90 147.11
Total - Equity (4) 58,120.51 51,314.10 (c) Share of Other Comprehensive Income/ (loss) of Joint Venture accounted for using equity method - 1.19
Total - LIABILITIES AND EQUITY (1+2+3+4) 465,502.75 410,860.09 (d) Income tax relating to these items
Sub-Total (ii) (908.08) (76.39)
Company Overview and Significant Accounting Policies 1 to 5
Other comprehensive Income/(Loss) for the period (i+ii) (971.04) (57.90)
XI. Total comprehensive Income for the period (IX+X) 10,195.94 9,977.80
Accompanying Notes to Financial Statements 1 to 73 XII. Basic & Diluted Earnings per Equity Share of ₹ 10 each (in ₹) 45
For and on behalf of the Board (1) For continuing operations 42.28 37.98
(2) For discontinued operations - -
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan (3) For continuing and discontinued operations 42.28 37.98
Company Overview and Significant Accounting Policies 1 to 5
DIN - 06629871 DIN - 01377212 For and on behalf of the Board
In terms of our Audit Report of even date
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. DIN - 06629871 DIN - 01377212
Chartered Accountants Chartered Accountants In terms of our Audit Report of even date
S.Murthy Rakesh Kumar Chartered Accountants Chartered Accountants
Partner Partner
M.No. : 072290 M.No. : 087537 S.Murthy Rakesh Kumar
Partner Partner
M.No. : 072290 M.No. : 087537
Place: Mumbai Place: Mumbai
Date: 17th May 2023 Date: 17th May 2023
276 277
Consolidated Statement of Cash Flows for the period ended 31st March 2023 Consolidated Statement of Cash Flows for the period ended 31st March 2023 (Contd.)
PARTICULARS Year ended 31.03.2023 Year ended 31.03.2022 PARTICULARS Year ended 31.03.2023 Year ended 31.03.2022
A. Cash Flow from Operating Activities : 8. Repayment towards Lease Liability (0.01) (0.02)
Net Profit before Tax 13,897.67 12,430.53 Net Cash flow from Financing Activities 38,122.84 67.72
Adjustments for: Net Increase/Decrease in Cash & Cash Equivalents (179.88) (1,038.25)
1. Loss/ (Gain) on derecognition of Property, Plant and Equipment (net) 6.65 0.97 Cash & Cash Equivalents as at the beginning of the period 140.99 1,179.24
2. Loss/ (Gain) on derecognition of Assets held for sale (net) (4.08) (30.19) Cash & Cash Equivalents as at the end of the period (38.89) 140.99
3. Depreciation & Amortization 24.26 18.24 During the year, the Group has received Dividend of ₹11.89 crores (previous year ₹4.21 crores). Further, during the year, the Group has paid an
4. Impairment allowance on Assets Classified as Held for Sale 0.03 9.71 amount of ₹211.13 crores (previous year ₹168.80 crores) towards Corporate Social Responsibility.
5. Impairment losses on Financial Instruments 142.17 3,470.02 Components of Cash & Cash Equivalents as at end of the year are:
6. Loss/ (Gain) on Fair Value Changes (net) (43.76) (338.58) (₹ in Crores)
7. Effective Interest Rate (EIR) in respect of Loan Assets and Borrowings (15.58) (88.22) PARTICULARS Year ended 31.03.2023 Year ended 31.03.2022
8. Interest on Commercial Paper - 14.76 - Cash on Hand (including imprest) 0.00 0.02
9. Unrealised Foreign Exchange Translation Loss/ (Gain) 963.93 943.16 - Balances with Banks 41.01 130.61
10. Share of Profit/Loss of Joint Venture accounted for using equity method - 11.81 - Short-term Deposits with Scheduled Banks 7.69 10.36
11. Interest on Investments (39.53) (51.88) - Bank Overdraft (87.59) -
Total Cash & Cash Equivalents (38.89) 140.99
Operating profit before Changes in Operating Assets & Liabilities 14,931.76 16,390.33
Inflow / (Outflow) on account of : Reconciliation of liabilities arising from financing activities
1. Loan Assets (50,424.82) (9,877.12) (₹ in Crores)
2. Derivatives 790.33 (2,510.91) Particulars Opening Cash Flows Movements Other Adjustments Closing
Balance during the in Interest Balance
3. Other Financial and Non- Financial Assets 125.99 (382.28) Exchange IndAS
period (net) Accrued *
4. Other Financial and Non- Financial Liabilities & Provisions (108.70) (1,360.42) Differences Adjustments
Cash flow from Operations (34,685.44) 2,259.60 Year ended 31-03-2023
Rupee Debt Securities 189,547.46 14,835.97 (33.08) - (138.56) 204,211.79
1. Income Tax Paid (including TDS) (2,774.13) (3,101.39)
2. Income Tax refund 99.79 23.26 Commercial Paper - - - - - -
Rupee Term Loans/ WCDL 61,460.56 14,896.53 65.87 - - 76,422.96
Net Cash Flow from Operating Activities (37,359.77) (818.53)
B. Cash Flow from Investing Activities Subordinated Liabilities 6,816.47 - (0.01) - (43.16) 6,773.30
1. Sale of Property, Plant & Equipment 0.02 0.10 Total 333,042.64 41,376.02 232.67 6,328.39 (189.98) 380,789.74
2. Sale of assets held for sale 4.60 31.24 Year ended 31-03-2022
3. Investment in Property, Plant & Equipment (incl. CWIP & Capital Advances) (17.67) (47.90) Rupee Debt Securities 211,208.71 (20,827.71) (859.84) - 26.29 189,547.45
4. Investment in Intangible Assets (including intangible assets under (0.01) (0.25) Commercial Paper - (14.76) - - 14.76 -
development & Capital Advances) Rupee Term Loans/ WCDL 59,281.36 2,164.16 15.04 - - 61,460.56
5. Finance Costs Capitalised (0.03) (5.10) Foreign Currency Debt Securities & Bonds 52,286.35 21,203.01 44.68 1,770.70 (86.59) 75,218.15
6. Sale/ (Investment) in Equity Shares 10.13 431.17
Total 329,723.31 2,524.70 (802.66) 1,770.70 (173.42) 333,042.63
7. Redemption/ (Investment) in High Quality Liquid Assets (HQLAs) (net) (457.82) (716.17) * Movement in Interest Accrued has been considered in ‘Operating Liabilities’ as Cash Flow from Operating Activities.
8. Redemption/ (Investment) in Debt Securities other than HQLAs (net) (343.44) 96.08
Note : Previous year figures have been rearranged and regrouped wherever necessary.
9. Sale/(Investment) of/in shares of associate companies (Net) (0.82) 0.82
10. Maturity/(Investment) of/in Corporate and Term deposits (137.91) (77.43)
Net Cash Flow from Investing Activities (942.95) (287.44) J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan
C. Cash Flow from Financing Activities
DIN - 06629871 DIN - 01377212
1. Issue/ (Redemption) of Rupee Debt Securities (net) 14,835.97 (20,827.70)
2. Issue/ (Redemption) of Commercial Paper (net) - (14.76)
3. Raising/ (Repayments) of Rupee Term Loans/ WCDL from Banks/ FIs (net ) 14,808.94 2,164.16 For S.K. Mittal & Co. For O.P. Bagla & Co. LLP.
4. Raising/ (Repayments) of Foreign Currency Debt Securities and Borrowings 11,643.52 21,203.01
(net)
5. Expenses on issue of Bonus Equity Shares (0.71) - S.Murthy Rakesh Kumar
Partner Partner
6. Coupon payment on Perpetual Debt Instruments entirely equity in (44.50) (45.60) M.No. : 072290 M.No. : 087537
nature
7. Payment of Dividend on Equity Shares (3,120.37) (2,411.37) Place: Mumbai
Date: 17th May 2023
278 279
Consolidated Statement of Changes in Equity for the period ended 31st March 2023
A Equity share capital (₹ in Crores)

Balance at the beginning of the period 1,974.92 1,974.92
Changes in equity share capital during the period* 658.30 -
Balance at the end of the period 2,633.22 1,974.92
B Instruments entirely equity in nature (₹ in Crores)

Balance at the beginning of the period 558.40 558.40
Changes in instruments entirely equity in nature during the period - -
Balance at the end of the period 558.40 558.40
C. Other Equity (₹ in Crores) (₹ in Crores)

Particulars Reserves & Surplus FVOCI- Equity Effective Costs of Total
Share of Other Instruments Portion of Hedging
Special Reserve for Statutory Securities Capital Foreign General Impairment Retained Comprehensive Cash Flow reserve
Reserve Bad and Reserve Premium Reserve Currency Reserve Reserve Earnings Income/ (loss) Hedges
created u/s doubtful u/s 45-IC of Account Monetary Item of Joint Venture
36(1) (viii) of debts u/s Reserve Bank Translation accounted for
the Income 36(1)(viia) of of India Act, Difference using equity
Tax Act, 1961 the Income 1934 Account method
Tax Act, 1961
Balance as at 31st March 2021 19,222.23 2,128.41 3,804.00 2,236.54 4.70 (573.16) 9,903.16 - 4,606.01 (1.19) 24.07 (165.61) 41.45 41,230.61
Profit for the year - - - - - - - - 10,035.69 - - - - 10,035.69
Remeasurement of Defined Benefit Plans - - - - - - - - (6.23) - - - - (6.23)
Recognition through Other Comprehensive Income - - - - - - - - (0.02) - 24.74 359.82 (437.40) (52.86)
(net of taxes)
Reclassification of (gain)/ loss on ceasation of - - - - - - - - - 1.19 - - - 1.19
significant influence
Total Comprehensive Income for the year - - - - - - - - 10,029.44 1.19 24.74 359.82 (437.40) 9,977.79
Transferred to/ (from) Retained Earnings 3,080.70 - 2,010.00 - - - - - (5,090.70) - - - - -
Transferred to General Reserve - (1,931.59) - - (4.70) - 1,936.29 - - - - - - -
Reclassification of gain/ (loss) on sale/ - - - - - - - - 86.79 (86.79) - - -
extinguishment of FVOCI equity instrument (net of
taxes)
Foreign Currency Translation Loss on long term - - - - - (216.94) - - - - - - - (216.94)
monetary items during the year
Amortisation during the year - - - - - 234.81 - - - - - - - 234.81
Coupon payment on Instrument Entirely Equity in - - - - - - - - (34.12) - - - - (34.12)
Nature (Perpetual Debt Instruments) (Net of Taxes)
Sub-Total 3,080.70 (1,931.59) 2,010.00 - (4.70) 17.87 1,936.29 - (5,038.03) - (86.79) - - (16.25)
Dividends - - - - - - - - (2,411.37) - - - - (2,411.37)
Sub-total- Transaction with owners - - - - - - - - (2,411.37) - - - - (2,411.37)
280 281
C. Other Equity (Contd.) (₹ in Crores) (₹ in Crores)
Particulars Reserves & Surplus FVOCI- Equity Effective Costs of Total

Share of Other Instruments Portion of Hedging
Special Reserve for Statutory Securities Capital Foreign General Impairment Retained Comprehensive Cash Flow reserve
Reserve Bad and Reserve Premium Reserve Currency Reserve Reserve Earnings Income/ (loss) Hedges
created u/s doubtful u/s 45-IC of Account Monetary Item of Joint Venture
36(1) (viii) of debts u/s Reserve Bank Translation accounted for
the Income 36(1)(viia) of of India Act, Difference using equity
Tax Act, 1961 the Income 1934 Account method
Tax Act, 1961
Balance as at 31st March 2022 22,302.93 196.82 5,814.00 2,236.54 - (555.29) 11,839.45 - 7,186.05 - (37.98) 194.21 (395.95) 48,780.78
Profit for the year - - - - - - - - 11,166.98 - - - - 11,166.98
Remeasurement of Defined Benefit Plans - - - - - - - - (4.48) - - - - (4.48)
Recognition through Other Comprehensive Income - - - - - - - - - - (58.48) 405.84 (1,313.92) (966.56)
(net of taxes)
Total Comprehensive Income for the year - - - - - - - - 11,162.50 - (58.48) 405.84 (1,313.92) 10,195.94
Transferred to/ (from) Retained Earnings 2,674.96 - 2,211.15 - - - - - (4,886.11) - - - - -
Transferred to/ (from) General Reserve - (196.82) - - - - 196.82 - - - - - - -
Reclassification of gain/ (loss) on sale/ - - - - - - - - 5.01 - (5.01) - - -
extinguishment of FVOCI equity instrument (net of
taxes)
Foreign Currency Translation Loss on long term - - - - - (487.03) - - - - - - - (487.03)
monetary items during the year
Amortisation during the year - - - - - 251.88 - - - - - - - 251.88
Coupon payment on Instrument Entirely Equity in - - - - - - - - (33.30) - - - - (33.30)
Nature (Perpetual Debt Instruments) (Net of Taxes)
Sub-total 2,674.96 (196.82) 2,211.15 - - (235.15) 196.82 - (4,914.40) - (5.01) - - (268.45)
Utilised for issue of Bonus Equity Shares (658.30) (658.30)
Expenses incurred on issue of Bonus Equity Shares (0.71) (0.71)
Dividends - - - - - - - - (3,120.37) - - - - (3,120.37)
Sub-Total- Transaction with owners - - - (659.01) - - - - (3,120.37) - - - - (3,779.38)
Balance as at 31 March 2023
st
24,977.89 - 8,025.15 1,577.53 0.00 (790.44) 12,036.27 - 10,313.78 - (101.47) 600.05 (1,709.87) 54,928.89
Refer Note No. 28.1 for details regarding drawdown/ transfers from Reserves

In terms of our Report of even date
S. Murthy Rakesh Kumar ED & Company Secretary Director (Finance) Chairman & Managing Dorector
Partner Partner DIN - 06629871 DIN - 01377212
M.No. : 072290 M.No. : 087537
Place: Mumbai
Date: 17th May 2023
282 283
Consolidated Notes to Accounts Consolidated Notes to Accounts
1. Company Overview financial statements from the date on which control 3.4 Income recognition Revenue is recognised to the extent that it is probable that
commences until the date on which control ceases. The the economic benefits will flow to the Group and the revenue
REC Limited (“REC” or the “Company” or the “holding Group combines the financial statements of the holding Interest income can be reliably measured.
company”) was incorporated in the year 1969. The Company company and its subsidiary line by line adding together like Interest income is recognized on time proportion basis taking The Group uses the principles laid down by the Ind AS 115 to
is domiciled in India and is limited by shares, having its items of assets, liabilities, equity, income and expenses. into account the amount outstanding and rate applicable. determine that how much and when revenue is recognized,
registered office and principal place of business at Core-4,
SCOPE Complex, 7, Lodhi Road, New Delhi-110003, India. Equity accounted investees Unless otherwise specified, the recoveries from the borrowers what is the nature, amount, timing and uncertainty of
The books of accounts are maintained at the Corporate are appropriated in the order of (i) costs and expenses of REC revenues etc. In accordance with the same, revenue is
The Group’s interests in equity accounted investees comprise recognised through a five-step approach:
Office situated at Plot no. I-4, Sector-29, Gurugram, Haryana, of the interests in associates and joint venture. (ii) delayed and penal interest including interest tax, if any
in addition to the registered office of the Company. The (iii) overdue interest including interest tax, if any and (iv) (i) Identify the contract(s) with customer;
Company has offices spread across the country, mainly in the An associate is an entity, including an unincorporated repayment of principal; the oldest being adjusted first, except
State Capitals and one training centre at Hyderabad. entity, over which the Company has significant influence for credit impaired loans and recalled loans, where principal (ii) Identify separate performance obligations in the
and that is neither a subsidiary nor an interest in a joint amount is appropriated only after the complete recovery of contract;
The Company is a Government of India Enterprise engaged
venture. Interests in associates are accounted for using other costs, expenses, delayed and penal interest and overdue (iii) Determine the transaction price;
in extending financial assistance across the power sector
the equity method. These interests are initially recognised interest including interest tax, if any. The recoveries under
value chain and is a Systemically Important (Non-Deposit (iv) Allocate the transaction price to the performance
at cost, which includes transaction costs. Subsequent to One Time Settlement (OTS)/ Insolvency and Bankruptcy Code
Accepting or Holding) Non-Banking Finance Company obligations; and
initial recognition, the consolidated financial statements (IBC) proceedings are appropriated first towards the principal
(NBFC) registered with Reserve Bank of India (RBI). Being an
include the Group’s share of Profit and Loss and Other outstanding and remaining recovery thereafter, towards (v) Recognise revenue when a performance obligation is
NBFC, the company is regulated by Reserve Bank of India.
Comprehensive Income (OCI) of equity - accounted interest and other charges, if any. satisfied.
The company has been accorded with the status of a investees until the date on which significant influence
For financial assets measured at amortized cost, interest Revenues are measured at the fair value of the consideration
‘Maharatna’ Central Public Sector Enterprise by the ceases. However, in case where it is assessed that the
income is recorded using the effective interest rate (EIR), i.e. received or receivable, net of discounts and other indirect
Department of Public Enterprises, under the Ministry of investment/ interest in associates is held for sale, the
the rate that exactly discounts estimated future cash receipts taxes.
Finance. interest in associates is accounted for under Ind AS 105.
through the expected life of the financial asset to the net
REC is a leading Infrastructure Finance Company in India A joint venture is an arrangement in which the Group carrying amount of the financial assets. In Cost Plus Contracts - Revenue is recognised by including
and the principal products of REC are interest-bearing loans has joint control and has rights to the net assets of the eligible contractual items of expenditures plus proportionate
Interest on financial assets subsequently measured at fair margin as per contract;
to State Electricity Boards, State Power utilities/State Power arrangement, rather than rights to its assets and obligations value through profit and loss is recognized on an accrual
Departments and Private sector for all segments of Power for its liabilities. In Fixed Price Contracts – Revenue is recognised on the
basis in accordance with the terms of the respective contract
infrastructure. basis of stage of completion of the contract. The Group
Interests in joint venture are accounted for using the equity and is disclosed separately under the head interest income.
The shares of the Company are listed on National Stock method. They are initially recognised at cost which includes has assessed that the stage of completion is determined as
Interest income on credit-impaired loan assets, unless the proportion of the total time expected to complete the
Exchange of India Limited and BSE Limited. Further, various transaction costs. Subsequent to initial recognition, the realized, is not being recognised as a matter of prudence, performance obligation to that has lapsed at the end of
debt securities of the Company are also listed on the Stock consolidated financial statements include the Group’s pending the outcome of resolutions of stressed assets. the reporting period, which is an appropriate measure of
Exchanges. share of Profit and Loss and Other Comprehensive Income
Rebate on account of timely payment of interest by borrowers progress towards complete satisfaction of these performance
The Company together with its subsidiaries is hereinafter (OCI) of equity-accounted investees until the date on which
is recognized on receipt of entire interest amount due in time, obligations under Ind AS 115.
referred to as ‘the Group’. significant influence or joint control ceases.
in accordance with the terms of the respective contract and is Estimates of revenues, costs or extent of progress toward
2. Statement of Compliance and Basis of Preparation 3.2 Transactions eliminated on consolidation netted against the corresponding interest income. completion are revised if circumstances change. Any
Income from Government schemes resulting increases or decreases in estimated revenues or
These Consolidated Financial Statements comply with Ind AS Intra-group balances and transactions, and any unrealised
costs are reflected in profit or loss in the period in which the
notified under the Companies (Indian Accounting Standards) income and expenses arising from intra-group transactions, Income of agency fee on Government schemes is recognized circumstances that give rise to the revision become known by
Rules, 2015 (as amended), applicable provisions of the are eliminated. Unrealised gains arising from transactions on accrual basis based on the services rendered. management.
Companies Act, 2013 and other applicable regulatory norms with equity accounted investees are eliminated against
the investment to the extent of the Group’s interest in the Dividend income Professional charges to be charged from the selected bidders/
/ guidelines including those issued by RBI.
investee. Unrealised losses are eliminated in the same way Income from dividend on shares of corporate bodies and developers for transmission projects put on tariff based
The consolidated financial statements for the year ended 31st as unrealised gains, but only to the extent that here is no bidding is accounted for in the year in which it is reasonably
units of mutual funds is taken into account on accrual basis
March 2023 were authorized and approved for issue by the evidence of impairment. certain that the ultimate collection of the professional
when right to receive payment is established.
Board of Directors on 17th May 2023. charges will be made.
3.3 Basis of Preparation and Measurement Provided that in case of final dividend, the right to receive
3. Significant Accounting Policies payment shall be considered as established only upon Sale proceeds of Request for Proposal (RFP) documents is
The consolidated financial statements have been prepared on approval of the dividend by the shareholders in the Annual credited to the respective SPV and sale proceeds of Request
The significant accounting policies applied in preparation of going concern basis following accrual system of accounting General Meeting. for Qualification (RFQ) documents is retained by the Group
the consolidated financial statements are as given below: and accounted as income of the Group.
on historical cost basis except for certain financial assets
Dividend on financial assets subsequently measured at fair
3.1 Basis of consolidation and financial liabilities which are measured at fair values as
value through profit and loss is recognised separately under 3.5 Borrowing costs
explained in relevant accounting policies. These policies have
the head ‘Dividend Income’.
Subsidiary been applied consistently for all the periods presented in the Borrowing costs consist of interest and other costs that
consolidated financial statements. Other services the Group incurred in connection with the borrowing of
Subsidiary is the entity controlled by the Group. The Group
controls an entity when it has power over the investee, Functional and presentation currency Fees/ charges on loan assets, other than those considered an funds. Borrowing costs that are directly attributable to the
is exposed to or has rights to variable returns from its adjustment to EIR, are accounted for on accrual basis. Pre- acquisition and/ or construction of a qualifying asset, till the
The consolidated financial statements are presented in Indian payment premium is accounted for by the Group in the year time such qualifying asset becomes ready for its intended
involvement with the entity and has the ability to affect
Rupee (‘INR’) which is also the functional currency of the of receipt. use, are capitalized. A qualifying asset is one that necessarily
those returns through its power over the entity. The financial
Group. takes a substantial period to get ready for its intended use.
statements of subsidiary are included in the consolidated Revenue from sale of services
284 285
All other borrowing costs are charged to the Statement of item will flow to the Group beyond one year. Maintenance Intangible Assets under Development that date, discounted using the interest rate implicit in the
Profit and Loss on an accrual basis as per the effective interest or servicing costs of PPE are recognized in the Statement of lease if that rate is readily available or the Group’s incremental
rate method. Profit and Loss as incurred. Expenditure incurred which are eligible for capitalization
borrowing rate.
under intangible assets is carried as ‘Intangible assets under
3.6 Earnings per share Subsequent measurement (depreciation method, useful lives, development’ till they are ready for their intended use. Lease payments included in the measurement of the
residual value, and impairment) Advances paid for the acquisition/ development of intangible lease liability are made up of fixed payments (including in
Basic earnings per share is calculated by dividing the net assets which are outstanding at the balance sheet date are substance fixed), variable payments based on an index or
PPE are subsequently measured at cost less accumulated classified under ‘Capital Advances’. rate, amounts expected to be payable under a residual value
profit or loss for the year attributable to equity shareholders
(after deducting attributable taxes) by the weighted average depreciation and impairment losses. Depreciation on PPE is guarantee and payments arising from options reasonably
provided on the straight-line method over the useful life of Derecognition of Intangible Assets
number of equity shares outstanding during the period. certain to be exercised.
the assets as prescribed under Part ‘C’ of Schedule II of the An intangible asset is derecognized on disposal, or when
To calculate diluted earnings per share, the net profit or Companies Act, 2013. Subsequent to initial measurement, the liability will be
no future economic benefits are expected from use or
loss for the year attributable to equity shareholders and the reduced for payments made and increased for interest. It is
Depreciation on assets purchased/sold during the year is disposal. Gains or losses arising from derecognition of an
weighted average number of shares outstanding during the remeasured to reflect any reassessment or modification, or if
charged for the full month if the asset is in use for more than intangible asset, measured as the difference between the net
period are adjusted for the effects of all dilutive potential there are changes in in-substance fixed payments.
15 days. Depreciation on assets purchased during the year up disposal proceeds and the carrying amount of the asset are
equity shares. recognized in the Statement of Profit and Loss when the asset When the lease liability is remeasured, the corresponding
to `5,000/- is provided @ 100%.
is derecognized. adjustment is reflected in the right-of-use asset, or profit and
3.7 Foreign Currency Translation
The residual values, useful lives, and method of depreciation loss if the right-of-use asset is already reduced to zero.
are reviewed at the end of each financial year. PPE other than 3.10 Lease accounting:
Foreign currency transactions and balances
land is tested for impairment whenever events or changes in 3.11 Assets held for sale
Foreign currency transactions are translated into the The Group recognises a right-of-use asset and related lease
circumstances indicate that the carrying amount may not be
functional currency of the Group using the exchange rates liability in connection with all former operating leases except Assets are classified as Held for Sale if their carrying amount
recoverable.
prevailing on the date of the transaction. for those identified as short-term or low-value lease. will be recovered principally through a sale transaction rather
De-recognition than through continuing use and the sale is highly probable.
Foreign exchange gains and losses resulting from the The Group assesses at contract inception whether a contract
A sale is considered as highly probable when such assets
settlement of such transactions and the re-measurement of An item of PPE and any significant part initially recognized is, or contains, a lease. A lease is defined as ‘a contract, or
have been decided to be sold by the Group; are available for
monetary items denominated in foreign currency at period- is derecognized upon disposal or when no future economic part of a contract, that conveys the right to use an asset
immediate sale in their present condition; are being actively
end exchange rates are recognized in the Statement of benefits are expected from its use or disposal. Any gain or (the underlying asset) for a period of time in exchange for
marketed for sale at a price and the sale has been agreed or
Profit or Loss. However, for the long-term monetary items loss arising on de-recognition of an item of PPE is determined consideration’.
is expected to be concluded within one year of the date of
recognized in the consolidated financial statements before as the difference between the net disposal proceeds and To apply this definition, the Group assesses whether the classification. Such assets are measured at lower of carrying
01st April 2018, such gains and losses are accumulated in the carrying amount of the asset and is recognized in the contract meets three key evaluations which are whether: amount or fair value less selling costs.
a “Foreign Currency Monetary Item Translation Difference Statement of Profit and Loss.
Account” and amortized over the balance period of such long - the contract contains an identified asset, which is Assets held for sale are presented separately from other assets
Capital Work-in-Progress either explicitly identified in the contract or implicitly in the Balance Sheet and are not depreciated or amortised
term monetary item, by recognition as income or expense in
specified by being identified at the time the asset is while they are classified as held for sale.
each of such periods. The cost of PPE under construction at the reporting date is
made available to the Group
disclosed as ‘Capital work-in-progress.’ The cost comprises Where the Group is committed to a sale plan involving loss of
Non-monetary items are not retranslated at period-end and
purchase price, borrowing cost if capitalization criteria are - the Group has the right to obtain substantially all of control of an entity, it classifies investment in the entity (i.e. all
are measured at historical cost (translated using the exchange
met and directly attributable cost of bringing the asset to its the economic benefits from use of the identified asset the assets and liabilities of that entity) as held for sale.
rates at the transaction date).
working condition for the intended use. Any trade discount throughout the period of use, considering its rights
within the defined scope of the contract 3.12 Financial Instruments
3.8 Property, Plant and Equipment (PPE) and rebates are deducted in arriving at the purchase price.
Advances paid for the acquisition/ construction of PPE which - the Group has the right to direct the use of the A Financial instrument is any contract that gives rise to a
Recognition and initial measurement are outstanding at the balance sheet date are classified under identified asset throughout the period of use. The financial asset of one entity and a financial liability or equity
‘Capital Advances.’ Group assess whether it has the right to direct ‘how instrument of another entity.
Land
and for what purpose’ the asset is used throughout
3.9 Intangible assets Initial recognition and measurement
Land held for use is initially recognized at cost. For land, as no the period of use.
finite useful life can be determined, related carrying amounts Recognition and initial measurement Financial assets and financial liabilities are recognized when
At lease commencement date, the Group recognizes a right-
are not amortized. the Group becomes a party to the contractual provisions
of-use asset and a lease liability on the balance sheet. The
Intangible assets are initially measured at cost. Such assets of the financial instrument and are measured initially at fair
Land also includes land treated as a Right of Use asset under right-of-use asset is measured at cost, which is made up of the
are recognized where it is probable that the future economic value adjusted by transactions costs, except for those carried
lease agreement earlier classified as finance lease and is initial measurement of the lease liability, any initial direct costs
benefits attributable to the assets will flow to the Group. at fair value through profit or loss which are measured initially
amortized over the lease term. incurred by the Group, an estimate of any costs to dismantle
at fair value. Subsequent measurement of financial assets and
Subsequent measurement (amortization method, useful lives and remove the asset at the end of the lease, and any lease
Other Tangible assets financial liabilities is described below.
and residual value) payments made in advance of the lease commencement date
PPE other than land is initially recognized at acquisition cost (net of any incentives received). Classification and subsequent measurement of financial assets
All intangible assets with finite useful life are amortized on
or construction cost, including any costs directly attributable The Group depreciates the right-of-use assets on a straight- For the purpose of subsequent measurement, financial
a straight line basis over the estimated useful lives, and a
to bringing the assets to the location and condition necessary line basis from the lease commencement date to the earlier of assets are classified into the following categories upon initial
possible impairment is assessed if there is an indication that
for it to be capable of operating in the manner intended by the end of the useful life of the right-of-use asset or the end of recognition:
the intangible asset may be impaired. Residual values and
the Group’s management. the lease term. The Group also assesses the right-of-use asset
useful lives for all intangible assets are reviewed at each • Amortized cost
Subsequent costs are included in the asset’s carrying amount reporting date. Changes, if any, are accounted for as changes for impairment when such indicators exist.
or recognized as a separate asset, as appropriate, only when it in accounting estimates. Management estimates the useful • Financial assets at fair value through profit or loss
At the commencement date, the Group measures the lease
is probable that future economic benefits associated with the life of intangible assets to be five years. (FVTPL)
liability at the present value of the lease payments unpaid at
286 287
• Financial assets at fair value through other exchange rate, or other variable, provided that, in the case an existing financial liability is replaced by another from the form of Expected Credit Loss (ECL) based on changes in credit
comprehensive income (FVOCI) of a non-financial variable, it is not specific to a party to the same lender on substantially different terms or the terms quality since initial recognition as summarised below:
contract. of an existing liability are substantially modified, such an • Stage 1 includes loan assets that have not had
All financial assets except for those at FVTPL or at FVOCI are
exchange or modification is treated as the derecognition of a significant increase in credit risk since initial
subject to review for impairment at least at each reporting Derivatives embedded in all host contracts are accounted the original liability and the recognition of a new liability. The recognition or that have low credit risk at the
date to identify whether there is any objective evidence that for as separate derivatives and recorded at fair value if their difference in the respective carrying amounts is recognized in reporting date.
a financial asset or a group of financial assets is impaired. economic characteristics and risks are not closely related to the statement of profit or loss.
Different criteria to determine impairment are applied to those of the host contracts or if the embedded derivative • Stage 2 includes loan assets that have had a significant
each category of financial assets, which are described below. feature leverages the exposure and the host contracts are not Hedge accounting increase in credit risk since initial recognition but that
held for trading or designated at fair value though profit or do not have objective evidence of impairment.
Amortized cost To qualify for hedge accounting, the hedging relationship
loss. These embedded derivatives are measured at fair value • Stage 3 includes loan assets that have objective
must meet all of the following requirements:
A financial asset is measured at amortized cost using Effective with changes in fair value recognised in profit or loss, unless evidence of impairment at the reporting date.
Interest Rate (EIR) if both of the following conditions are met: designated as effective hedging instruments. - there is an economic relationship between the
hedged item and the hedging instrument The Expected Credit Loss (ECL) is measured at 12-month
a) the financial asset is held within a business model Financial assets at FVOCI ECL for Stage 1 loan assets and lifetime ECL for Stage 2 and
whose objective is to hold financial assets to collect - the effect of credit risk does not dominate the value Stage 3 loan assets. ECL is the product of the Probability of
FVOCI financial assets comprise of equity instruments
contractual cash flows; and changes that result from that economic relationship Default, Exposure at Default and Loss Given Default, defined
measured at fair value. An equity investment classified as
as follows:
b) the contractual terms of the financial asset give FVOCI is initially measured at fair value plus transaction costs. - the hedge ratio of the hedging relationship is the
rise on specified dates to cash flows that are solely Gains and losses are recognized in other comprehensive same as that resulting from the quantity of the Probability of Default (PD) - The PD represents the likelihood
payments of principal and interest on the principal income and reported within the FVOCI reserve within equity, hedged item that the entity actually hedges and the of the borrower defaulting on its obligation either over next
amount outstanding. except for dividend income, which is recognized in profit or quantity of the hedging instrument that the entity 12 months or over the remaining lifetime of the instrument.
loss. There is no recycling of such gains and losses from OCI actually uses to hedge that quantity of hedged item.
Impairment Allowance (expected credit loss) is recognized on Loss Given Default (LGD) – LGD represents the Company’s
to Statement of Profit & Loss, even on the derecognition of
financial assets carried at amortized cost. All derivative financial instruments designated under hedge expectation of loss given that a default occurs. LGD is
the investment. However, the Group may transfer the same expressed in percentage and it shows the proportion of the
accounting are recognised initially at fair value and reported
Modification of cash flows within equity. amount that will actually be lost post recoveries in case of a
subsequently at fair value at each reporting date. To the
When the contractual cash flows of a financial asset are De-recognition of financial assets extent that the hedge is effective, changes in the fair value default.
renegotiated or otherwise modified, and the renegotiation or of derivatives designated as hedging instruments in cash Exposure at Default (EAD) – EAD represents the amounts,
modification does not result in derecognition of that financial De-recognition of financial assets due to a substantial flow hedges are recognised in other comprehensive income including the principal outstanding, interest accrued and
asset, the Group recalculates the gross carrying amount of the modification of terms and conditions and included within the cash flow hedge reserve in equity. outstanding Letters of Comfort that the Company expects to
financial asset and recognizes a modification gain or loss in Any ineffectiveness in the hedge relationship is recognised be owed at the time of default.
The Group derecognizes a financial asset, such as a loan immediately in profit or loss.
profit or loss. The gross carrying amount of the financial asset
to a customer, when the terms and conditions have been Forward-looking economic information is included in
shall be recalculated as the present value of the renegotiated
renegotiated to the extent that, substantially, it becomes a At the time the hedged item affects profit or loss, any gain determining the 12-month and lifetime PD, EAD and LGD.
or modified contractual cash flows that are discounted at
new loan, with the difference recognized as a derecognition or loss previously recognised in other comprehensive income The assumptions underlying the expected credit loss are
the financial asset’s original effective interest rate. Any costs
gain or loss, to the extent that an impairment loss has not is reclassified from equity to profit or loss and presented as monitored and reviewed on an ongoing basis.
or fees incurred adjust the carrying amount of the modified
already been recorded. a reclassification adjustment within other comprehensive
financial asset and are amortized over the remaining term of Financial assets other than Loans
income.
the modified financial asset. De-recognition of financial assets other than due to
At the inception of each hedging relationship, the Group In respect of its other financial assets, the Group assesses if the
Financial assets at FVTPL substantial modification credit risk on those financial assets has increased significantly
formally designates and documents the hedge relationship,
Financial assets at FVTPL include financial assets that either Financial assets (or where applicable, a part of financial in accordance with the Group’s risk management objective since initial recognition. If the credit risk has not increased
and strategies. The documentation includes identification significantly since initial recognition, the Group measures the
do not meet the criteria for amortized cost classification asset or part of a group of similar financial assets) are
of the hedged item, hedging instrument, the nature of loss allowance at an amount equal to 12-month expected
or are equity instruments held for trading or that meet derecognized (i.e. removed from the Group’s balance sheet)
risk(s) being hedged, the hedge ratio and how the hedging credit losses, else at an amount equal to the lifetime expected
certain conditions and are designated at FVTPL upon when the contractual rights to receive the cash flows from
relationship meets the hedging effectiveness requirements. credit losses.
initial recognition. All derivative financial instruments also the financial asset have expired, or when the financial asset
fall into this category, except for those designated and and substantially all the risks and rewards are transferred. To make that assessment, the Group compares the risk of
Fair Value Hedges
effective as hedging instruments, for which the hedge The Group also derecognizes the financial asset if it has both a default occurring on the financial asset as at the balance
accounting requirements may apply. Assets in this category transferred the financial asset and the transfer qualifies for In line with the recognition of change in the fair value of the sheet date with the risk of a default occurring on the financial
are measured at fair value with gains or losses recognized in derecognition. hedging instruments in the Statement of Profit & Loss, the asset as at the date of initial recognition. The Group also
profit or loss. The fair values of financial assets in this category change in the fair value of the hedged item attributable to considers reasonable and supportable information, that is
Classification and subsequent measurement of financial the risk hedged is recognised in the Statement of Profit and
are determined by reference to active market transactions or available without undue cost or effort, that is indicative of
liabilities Loss. Such changes are made to the carrying amount of the significant increases in credit risk since initial recognition. The
using a valuation technique where no active market exists.
Financial liabilities are measured subsequently at amortized hedged item and are adjusted in Effective Interest Rate in the Group assumes that the credit risk on a financial asset has not
Embedded derivatives increased significantly since initial recognition if the financial
cost using the effective interest method, except for financial period when the hedging instrument ceases to exit. If the
An embedded derivative is a component of a hybrid liabilities held for trading or designated at FVTPL, that hedged item is derecognised, the unamortised fair value is asset is determined to have low credit risk at the balance
instrument that also includes a non-derivative host contract are carried subsequently at fair value with gains or losses recognised immediately in Statement of Profit and Loss. sheet date.
with the effect that some of the cash flows of the combined recognized in profit or loss. Write-offs
instrument vary in a way similar to a stand-alone derivative. 3.13 Impairment of financial assets
Derecognition of financial liabilities Financial assets are written off either partially or in their
An embedded derivative causes some or all of the cash
Loan assets entirety only when the Group has stopped pursuing the
flows that otherwise would be required by the contract to A financial liability is derecognized when the obligation
be modified according to a specified interest rate, foreign under the liability is discharged or cancelled or expires. When The Group follows a ‘three-stage’ model for impairment in the recovery or as directed by the order of the Judicial Authority.
288 289
3.14 Cash and cash equivalents probable that future taxable profits will be available against Other long-term employee benefits: Fair value is the price that would be received to sell an asset
which the deductible temporary difference can be utilized. or paid to transfer a liability in an orderly transaction between
Cash and cash equivalents comprise cash on hand and Deferred tax assets are reviewed at each reporting date and Liability in respect of compensated absences becoming market participants at the measurement date. The fair value
demand deposits, together with other short-term, highly are reduced to the extent that it is no longer probable that due or expected to be availed more than one-year after the measurement is based on the presumption that the transaction
liquid investments (original maturity less than three months) the related tax benefit will be realized. balance sheet date is estimated on the basis of actuarial to sell the asset or transfer the liability takes place either:
that are readily convertible into known amounts of cash and valuation performed by an independent actuary using the
which are subject to an insignificant risk of changes in value. Changes in deferred tax assets or liabilities are recognized projected unit credit method. • In the principal market for the asset or liability, or
as a component of tax income or expense in profit or loss,
Actuarial gains and losses arising from past experience and • In the absence of a principal market, in the most
3.15 Dividend and Other Payments to holders of Instruments except where they relate to items that are recognized in
changes in actuarial assumptions are charged to statement of advantageous market for the asset or liability
classified as Equity other comprehensive income or directly in equity, in which
profit and loss in the period in which such gains or losses are
case the related deferred tax is also recognized in other The principal or the most advantageous market must be
Proposed dividends and interim dividends payable to the determined.
comprehensive income or equity, respectively. accessible by the Group.
shareholders are recognized as changes in equity in the Loan to employees at concessional rate
period in which they are approved by the shareholders’ 3.19 Employee benefits The fair value of an asset or a liability is measured using
meeting and the Board of Directors respectively. Liability Loans given to employees at concessional rate are initially the assumptions that market participants would use when
for the payments to the holders of instruments classified as Short-term employee benefits recognized at fair value and subsequently measured at pricing the asset or liability, including assumptions about risk,
equity are recognized in the period when such payments are amortised cost. The difference between the initial fair value assuming that market participants act in their economic best
Short-term employee benefits including salaries, short term
authorized for payment by the Group. of such loans and transaction value is recognised as deferred interest. A fair value measurement of a non-financial asset
compensated absences (such as a paid annual leave) where
employee benefits, which is amortised on a straight-line takes into account a market participant’s ability to generate
the absences are expected to occur within twelve months
3.16 Material prior period errors basis over the expected remaining period of the Loan. In economic benefits by using the asset in its highest and best
after the end of the period in which the employees render
case of change in expected remaining period of the Loan, use or by selling it to another market participant that would
Material prior period errors are corrected retrospectively the related service, profit sharing and bonuses payable
the unamortised deferred employee benefits on the date of use the asset in its highest and best use.
by restating the comparative amounts for the prior periods within twelve months after the end of the period in which
change is amortised over the updated expected remaining
presented in which the error occurred. If the error occurred the employees render the related services and non-monetary period of the loan on a prospective basis. The Group uses valuation techniques that are appropriate in
before the earliest period presented, the opening balances of benefits for current employees are estimated and measured the circumstances and for which sufficient data are available
assets, liabilities and equity for the earliest period presented, on an undiscounted basis. 3.20 Provisions, Contingent Liabilities, and Contingent Assets to measure fair value, maximizing the use of relevant
are restated. observable inputs and minimizing the use of unobservable
Post-employment benefit plans are classified into defined Provisions are recognized when the Group has a present inputs.
benefits plans and defined contribution plans as under: legal or constructive obligation as a result of a past event;
3.17 Prepaid Expenses
it is probable that an outflow of economic resources All assets and liabilities for which fair value is measured
Defined contribution plan
A prepaid expense up to `1,00,000/- is recognized as expense will be required from the Group and amounts can be or disclosed in the consolidated financial statements are
upon initial recognition. A defined contribution plan is a plan under which the Group estimated reliably. Timing or amount of the outflow may categorized within the fair value hierarchy, described as
pays fixed contributions in respect of the employees into still be uncertain. Provisions are measured at the estimated follows, based on the lowest level input that is significant to
3.18 Taxation a separate fund. The Group has no legal or constructive expenditure required to settle the present obligation, based the fair value measurement as a whole:
obligations to pay further contributions after its payment of on the most reliable evidence available at the reporting date,
Tax expense recognized in profit or loss comprises the sum • Level 1 - Quoted (unadjusted) market prices in active
the fixed contribution. The contributions made by the Group including the risks and uncertainties associated with the
of deferred tax and current tax. It is recognized in Statement present obligation. Provisions are discounted to their present markets for identical assets or liabilities
towards defined contribution plans are charged to the profit
of Profit and Loss, except when it relates to an item that is or loss in the period to which the contributions relate. values, where the time value of money is material. • Level 2 - Valuation techniques for which the lowest
recognised in OCI or directly in equity, in which case, the tax level input that is significant to the fair value
Defined benefit plan A contingent liability is disclosed for:
is also recognised in OCI or directly in equity. measurement is directly or indirectly observable
• Possible obligations which will be confirmed only
Current tax is determined as the tax payable in respect The Group has an obligation towards gratuity, Post-Retirement
by future events not wholly within the control of the • Level 3 - Valuation techniques for which the lowest
of taxable income for the year, using tax rates enacted or Medical Facility (PRMF) and Other Defined Retirement Benefit
Group or level input that is significant to the fair value
substantively enacted and as applicable at the reporting date, (ODRB) which are being considered as defined benefit plans
• Present obligations arising from past events where it measurement is unobservable
and any adjustments to tax payable in respect of previous covering eligible employees. Under the defined benefit plans,
the amount that an employee will receive on retirement is is not probable that an outflow of resources will be
years. For assets and liabilities that are recognized in the consolidated
required to settle the obligation or a reliable estimate
defined by reference to the employee’s length of service, final financial statements regularly, the Group determines whether
Deferred tax is recognized on temporary differences of the amount of the obligation cannot be made.
salary, and other defined parameters. The legal obligation for transfers have occurred between levels in the hierarchy by re-
between the carrying amounts of assets and liabilities in the any benefits remains with the Group, even if plan assets for In those cases, where the outflow of economic resources as assessing categorization (based on the lowest level input that
consolidated financial statements and the corresponding tax funding the defined benefit plan have been set aside. a result of present obligations is considered improbable or is significant to the fair value measurement as a whole) at the
bases used in the computation of taxable income. remote, no liability is recognized or disclosure is made. end of each reporting period.
The Group’s obligation towards defined benefit plans is
Deferred tax assets and liabilities are calculated, without determined using the projected unit credit method, with Any reimbursement that the Group can be virtually certain to
3.22 Offsetting of financial instruments
discounting, at tax rates that are expected to apply to their actuarial valuations being carried out at the end of each collect from a third party concerning the obligation (such as
respective period of realization, provided those rates are annual reporting period. The liability recognized in the from insurance) is recognized as a separate asset. However, Financial assets and financial liabilities are offset and the net
enacted or substantively enacted by the end of the reporting statement of financial position for defined benefit plans is this asset may not exceed the amount of the related provision. amount is reported in the balance sheet if there is a currently
period. Deferred tax assets and liabilities are offset if there is the present value of the Defined Benefit Obligation (DBO) Contingent assets are not recognized. However, when the enforceable legal right to offset the recognised amounts and
a legally enforceable right to offset current tax liabilities and at the reporting date less the fair value of plan assets. inflow of economic benefits is probable, the related asset is there is an intention to settle on a net basis, to realise the
assets, and they relate to income taxes levied by the same tax Management estimates the DBO annually with the assistance disclosed. assets and settle the liabilities simultaneously.
authority. of independent actuaries.
3.21 Fair value measurement 3.23 Business Combination under Common Control
Deferred tax liability is recognized for all taxable temporary Actuarial gains/losses resulting from re-measurements of the
differences. A deferred tax asset is recognized for all liability/asset are included in Other Comprehensive Income. The Group measures financial instruments, such as derivatives A business combination, if any, involving entities or businesses
deductible temporary differences to the extent that it is at fair value at each reporting date. under common control is a business combination in which
290 291
all of the combining entities or businesses are ultimately how market participants would price the instrument. In and resulting losses). The Group makes significant judgments
Significant management judgments
controlled by the same party or parties both before and after estimating the fair value of an asset or a liability, the Group about the following while assessing expected credit loss to
the business combination and that control is not transitory. Recognition of deferred tax assets/ liability – The extent uses market-observable data to the extent it is available. In estimate ECL:
to which deferred tax assets can be recognized is based on case of non-availability of market-observable data, Level 2 &
Business combinations involving entities or businesses under • Determining criteria for a significant increase in credit
an assessment of the probability of the future taxable income Level 3 hierarchy is used for fair valuation.
common control are accounted for using the pooling of risk;
against which the deferred tax assets can be utilized. Further,
interest method as follows: Income Taxes – Significant estimates are involved in
the Management has no intention to make withdrawal from • Establishing the number and relative weightings of
determining the provision for income taxes, including
• The assets and liabilities of the combining entities are the Special Reserve created and maintained under section forward-looking scenarios for each type of product/
amount expected to be paid/recovered for uncertain tax
reflected at their carrying amounts. 36(1)(viii) of the Income tax Act, 1961 and thus, the special market and the associated ECL; and
positions and also in respect of expected future profitability
reserve created and maintained is not capable of being
• No adjustments are made to reflect fair values, or to assess deferred tax asset. • Establishing groups of similar financial assets to
reversed. Hence, the Group does not create any deferred tax
recognize new assets or liabilities. Adjustments are measure ECL.
liability on the said reserve. Expected Credit Loss (‘ECL’) – The measurement of an
made only to harmonise significant accounting
expected credit loss allowance for financial assets measured • Estimating the probability of default and loss given
policies. Recognition of Deferred Tax Liability on Undistributed
at amortized cost requires the use of complex models and default (estimates of recoverable amounts in case of
Reserves of Group Companies – The applicable tax laws
• The financial information in the financial statements significant assumptions about future economic conditions default)
provide for tax deduction in respect of dividend income from
in respect of prior periods is restated as if the business and credit behaviour (e.g., likelihood of customers defaulting
equity investments, to the extent of dividend declared by the
combination has occurred from the beginning of Company to its shareholders during the year. Considering the
the preceding period in the financial statements, historical information and dividend distribution policy of the
irrespective of the actual date of the combination Company, the Company does not expect any tax liability on
The balance of the retained earnings appearing in the the undistributed reserves of the Group Companies, as and
financial statements of the transferor is aggregated with the when such reserves are distributed. Hence, the Company
corresponding balance appearing in the financial statements does not create any deferred tax liability on undistributed
of the transferee. The identity of the reserves is preserved reserves of Group Companies.
and the reserves of the transferor become the reserves of the Evaluation of indicators for impairment of assets – The
transferee evaluation of the applicability of indicators of impairment of
The difference, if any, between the amounts recorded as share assets requires assessment of several external and internal
capital issued plus any additional consideration in the form of factors which could result in deterioration of recoverable
cash or other assets and the amount of share capital of the amount of the assets.
transferor is transferred to capital reserve and is presented Investment in SPVs – Transmission projects are managed as
separately from other capital reserves. per the mandate from Government of India and the Group
3.24 Expenditure on issue of shares does not have the practical ability to direct the relevant
activities of these projects unilaterally. The Group therefore
Expenditure on issue of shares, if any, is charged to the considers its investment in respective SPVs as associates
securities premium account having significant influence despite the Company holding
100% of their paid-up equity share capital.
4. Implementation of New/ Modified Standards
Non recognition of Interest Income on Credit Impaired
During the year, the Ministry of Corporate Affairs (MCA) has Loans - Interest income on credit-impaired loan assets is
issued amendments to certain Ind AS. The Group has analysed not being recognised as a matter of prudence, pending the
the impact of these amendments, which is not material to the outcome of resolutions of stressed assets.
Group. Further, MCA has not issued any new Ind-AS applicable Significant estimates
to the company.
Useful lives of depreciable/amortizable assets –
5. Significant management judgment in applying Management reviews its estimate of the useful lives of
accounting policies and estimation of uncertainty depreciable/amortizable assets at each reporting date, based
on the expected utility of the assets. Uncertainties in these
The preparation of the Group’s consolidated financial estimates relate to technical and economic obsolescence that
statements requires management to make judgments, may change the utility of assets.
estimates, and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the related Defined benefit obligation (DBO) – Management’s estimate
disclosures. The estimates and underlying assumptions are of the DBO is based on a number of underlying assumptions
based on historical experience & other relevant factors and such as standard rates of inflation, mortality, discount rate
are reviewed on an ongoing basis. Actual results may differ and anticipation of future salary increases. Variation in these
from these estimates. assumptions may significantly impact the DBO amount and
the annual defined benefit expenses.
Changes in accounting estimates- Such changes, if any, are
recognised in the period in which the estimate is revised if Fair value measurements – Management applies valuation
the revision affects only that period or in the period of the techniques to determine the fair value of financial instruments
revision & future periods if it affects both current & future (where active market quotes are not available). This involves
periods. developing estimates and assumptions consistent with
292 293
6 Cash and Cash Equivalents 8.1 Trade Receivables ageing schedule
Particulars As at 31.03.2023 As at 31.03.2022 Particulars Outstanding as at 31st March 2023
Cash on Hand (including imprest) - 0.02 Less than 6 6 months- 1-2 years 2-3 years More than Total
Balances with Banks months 1 year 3 years
- in current accounts 41.01 130.51 (i) - Undisputed Trade receivables
- deposits with original maturity of 3 months or less 7.69 10.46 - considered good 97.52 31.21 - - - 128.73
Total 48.70 140.99 - which have significant increase in - - 21.32 16.30 - 37.62
credit risk
7 Bank Balances (other than Cash and Cash Equivalents) - credit impaired - - - - 56.35 56.35
(₹ in Crores)
Sub- total (i) 97.52 31.21 21.32 16.30 56.35 222.70
(ii) - Disputed Trade receivables
- Earmarked Balances with Banks
- considered good - - - - - -
- For unpaid dividends 6.79 6.39
- which have significant increase in - - - - - -
- For govt. funds for onward disbursement as grant 170.63 880.59 credit risk
- Earmarked Term Deposits - credit impaired - - - - - -
- Deposits in Compliance of Court Order 0.62 0.59 Sub- total (ii) - - - - - -
- Term Deposit held as Margin Money against Bank Guarantee - 0.27 Total (i+ii) 97.52 31.21 21.32 16.30 56.35 222.70
- Term Deposit- Debenture Redemption Reserves 196.35 225.33
(₹ in Crores)
- Balances with banks not available for use pending allotment of 54EC Capital 1,720.36 1,291.54
Particulars Outstanding as at 31 March 2022
st
Gain Tax Exemption Bonds
Less than 6 6 months- 1-2 years 2-3 years More than Total
- Other Term deposits 252.16 114.25
months 1 year 3 years
Total 2,346.91 2,518.96
(i) - Undisputed Trade receivables
Term Deposits with remaining maturity more than 3 months but less than 12 months 181.30 49.24
- considered good 65.44 26.50 - - - 91.94
Term Deposits with original maturity more than 12 months 70.86 65.28
- which have significant increase in - - 16.41 14.56 - 30.97
7.1 There are no repatriation restrictions with respect to Cash & Cash Equivalents and Bank balances (other than Cash & Cash Equivalents) credit risk
as at 31st March 2023 (Previous year Nil). - credit impaired - - - - 54.36 54.36
8 Trade Receivables Sub- total (i) 65.44 26.50 16.41 14.56 54.36 177.27
(₹ in Crores)
(ii) - Disputed Trade receivables
- considered good - - - - - -
(A) Unsecured, Considered good 128.73 91.94
- which have significant increase in credit - - - - - -
Less: Allowance for Expected Credit Loss (25.67) (12.48)
risk
103.06 79.46
- credit impaired - - - - - -
(B) Trade receivables which have significant increse in credit risk 37.62 30.97
Sub- total (ii) - - - - - -
Less: Allowance for Expected Credit Loss (28.07) (15.88)
Total (i+ii) 65.44 26.50 16.41 14.56 54.36 177.27
9.55 15.09
9 Derivative Financial Instruments
(C) Credit impaired receivables 56.35 54.36
Less: Allowance for Expected Credit Loss (55.96) (54.36) The Company enters into derivatives for hedging foreign exchange risks and interest rate risks. Derivatives held for risk management
purposes include hedges that are either designated as effective hedges under the hedge accounting requirements or hedges that are
0.39 - economic hedges. The table below shows the fair values of derivative financial instruments recorded as assets or liabilities together
Total Trade Receivables (A+B+C) 113.00 94.55 with their notional amounts.
Refer Note 51 for Risk Management Disclosures in respect of the derivatives.
294 295
Part I 10 Loans
(₹ in Crores) The Company has categorised all loans at Amortised Cost in accordance with the requirements of Ind AS 109.
Notional Fair Value Fair Value - Notional Fair Value Fair Value
Amounts - Assets Liabilities Amounts - Assets - Liabilities Principal O/s Amortised Cost Principal O/s Amortised Cost
(i) Currency Derivatives (A) Loans

(i) Term Loans 408,463.40 409,638.42 383,310.40 384,566.08
- Currency swaps 3,083.13 47.50 58.13 2,850.13 1.39 48.37 (ii) Working Capital Term Loans 26,548.39 26,709.24 2,060.86 2,069.12
- Others Total (A) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20
- Call Spread 2,055.42 208.14 - 1,895.18 76.73 - Total (A) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54
- Seagull Options 80,362.47 8,007.42 87.89 54,727.54 4,868.28 - (B) Security Details
(i) Secured by tangible assets 242,310.94 242,633.17 223,793.64 224,420.98
Sub-total (i) 85,501.02 8,263.06 146.02 59,472.85 4,946.40 48.37 (ii) Covered by Govt. Guarantees 172,069.58 173,004.21 130,973.50 131,510.35
(ii) Interest Rate Derivatives (iii) Unsecured 20,631.27 20,710.28 30,604.12 30,703.87
Total (B) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20
- Forward Rate Agreements and Interest Rate Swaps 46,278.27 718.55 300.82 33,239.41 563.77 173.52
Sub-total (ii) 46,278.27 718.55 300.82 33,239.41 563.77 173.52 Total (B) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54
(iii) Other derivatives (C)(I) Loans in India
(i) Public Sector 393,225.23 394,571.78 350,455.72 351,732.04
- Reverse cross currency swaps 4,947.00 - 530.11 4,747.00 - 331.25 (ii) Private Sector 41,786.56 41,775.88 34,915.54 34,903.16
Total - Derivative Financial Instruments (i + ii+iii) 136,726.29 8,981.61 976.95 97,459.26 5,510.17 553.14 Total (C)(I) - Gross Loans 435,011.79 436,347.66 385,371.26 386,635.20
Part II Total (C)(I) - Net Loans 420,748.04 422,083.91 370,666.60 371,930.54
(C)(II) Loans outside India - - - -
Included in Part I are derivatives held for hedging and risk management purposes as below: Less: Impairment loss allowance - - - -
(₹ in Crores) Total (C)(II) - Net Loans - - - -
Particulars As at 31.03.2023 As at 31.03.2022 Total (C)(I) and (C)(II) 420,748.04 422,083.91 370,666.60 371,930.54
Notional Fair Value Fair Value - Notional Fair Value Fair Value - 10.1 Reconciliation between the figures reported under Ind-AS and contractual amounts outstanding in respect of Loans:
Amounts - Assets Liabilities Amounts - Assets Liabilities (₹ in Crores)
(i) Fair Value Hedging
Net Loans 422,083.91 371,930.54
- Interest Rate Derivatives Less: Interest accrued and due on Loans classified under the same head as per Ind-AS (60.23) (423.59)
- Forward Rate Agreements and Interest Rate Swaps 15,950.70 10.32 289.34 11,850.70 19.76 112.00 Less: Interest accrued and not due on Loans classified under the same head as per Ind-AS (1,436.81) (957.96)
Add: Allowance for Expected Credit Loss netted off as per Ind-AS 14,263.75 14,704.66
Sub-total (i) 15,950.70 10.32 289.34 11,850.70 19.76 112.00
Add: Ind-AS Adjustments in respect of fees based income at Effective Interest Rate (EIR) 161.17 117.61
(ii) Cash Flow Hedging Gross Loans 435,011.79 385,371.26
- Currency Derivatives 10.2 Movement of Impairment Loss Allowance in respect of Loans:
- Currency Swaps 3,083.13 38.85 - 2,842.77 - 48.37 (₹ in Crores)
Particulars Year ended Year ended
- Others 31.03.2023 31.03.2022
- Call Spread 2,055.42 208.14 - 1,895.18 76.73 - Opening Balance 14,704.66 13,206.11
- Seagull Options 80,362.47 7,979.02 85.76 54,727.54 4,868.28 - Add: Impairment loss allowance provided during the year (Refer Note 38)* 110.17 3,422.56
Less: Allowance utilised towards write-off of loans (551.08) (1,924.01)
- Interest Rate Derivatives
Closing Balance 14,263.75 14,704.66
- Forward Rate Agreements and Interest Rate Swaps 23,627.57 337.69 11.48 13,313.21 115.10 45.27 * Impairment loss allowance during FY 2021-22 includes enhancement of allowance to a minimum level of 0.40% on stage 1&2 loan assets amounting to
₹838.06 crores and additional allowance created to align with lead lender alongwith management overlays amounting to ₹1,408.74 crores.
Sub-total (ii) 109,128.59 8,563.70 97.24 72,778.70 5,060.11 93.64
10.3 In terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ Restructuring, the
(iii) Undesignated Derivatives 11,647.00 407.59 590.37 12,829.86 430.30 347.50
Company has written off loans amounting to ₹551.08 crores (Previous year ₹1,924.01 crores). The details of write-offs for the current
Total - Derivative Financial Instruments (i+ii+iii) 136,726.29 8,981.61 976.95 97,459.26 5,510.17 553.14 year are as below:
Derivative financial instruments are measured at fair value at each reporting date. The changes in the fair value of derivatives designated as (i) During the current year
hedging instruments in effective cash flow hedges are recognised in Other Comprehensive Income. In case of fair value hedges, the changes in
fair value of the derivatives designated as hedging instruments along with the fair value changes in the carrying amount of the hedged items (a) Pursuant to the Resolution Plan approved under IBC proceedings executed on 5th September 2022 in respect of Jhabua Power
are recognised in the Statment of Profit & Loss. For undesignated derivatives, the changes in the fair value are recognised in the Statement of Limited, the Company has written off an amount of ₹10.41 crores after appropriating recoveries of ₹310.63 crores (Cash
Profit & Loss. ₹77.41 crore, Non-Convertible Debentures of ₹51.48 crore and Equity of ₹181.74 crore).
296 297
(₹ in Crores)
(b) Pursuant to the Resolution Plan approved under IBC proceedings executed on 16th September 2022 in respect of South East
U.P. Power Transmission Company Limited, the company has recovered the entire outstanding loan of ₹922.09 crores and Particulars Amor- At fair value Sub-total Others Total
₹132.91 crores overdue interest after appropriating cash recoveries of ₹1,055.00 crores. tised Cost Through Through Designated (At Cost)
(c) Pursuant to the liquidation order passed under IBC proceedings executed on 27th December 2022 in respect of Ind Barath Other Com- profit or at fair value
Energy (Utkal) Limited, the Company has written off an amount of ₹536.16 crores after appropriating equity & cash recoveries prehensive loss through profit
totalling to ₹240.84 crores. Income or loss
(1) (2) (3) (4) (5= 1+2+3+4) (6) (7=5+6)
(d) Pursuant to the One Time Settlement executed on 2nd December 2022 in respect of ATN International Limited, the Company Investments outside India - - - - - - -
has written off an amount of ₹3.45 crores after appropriating total recoveries of ₹6.00 crores, of which ₹4.15 crores to be
Investments in India 2,227.36 381.71 589.65 - 3,198.72 - 3,198.72
received in FY 2023-24.
Total - Gross (B) 2,227.36 381.71 589.65 - 3,198.72 - 3,198.72
(e) Pursuant to the One Time Settlement executed on 2nd December 2022 in respect of Silicon Valley infotech Limited, the Total Investments 2,227.36 381.71 589.65 - 3,198.72 - 3,198.72
Company has written off an amount of ₹1.06 crore after appropriating total recoveries of ₹1.85 crores, of which ₹1.35 crores to Less: impairment loss allowance (C) (28.72) - - - (28.72) - (28.72)
be received in FY 2023-24. Total - Net (D=A-C) 2,198.64 381.71 589.65 - 3,170.00 - 3,170.00
(ii) During the previous year As at 31st March, 2022
Govt. Securities 1,374.51 - - - 1,374.51 - 1,374.51
(a) Pursuant to the Resolution Plan approved under IBC proceedings executed on 13th May 2021 in respect of VS Lignite Power Debt Securities 365.60 - 132.55 - 498.15 - 498.15
Private Limited, the Company has written off an amount of ₹ 39.45 crores after appropriating the recoveries of ₹ 14.79 crores Equity Instruments - 268.26 49.52 - 317.78 - 317.78
(Cash ₹ 1.30 crores and Term Loan of ₹ 13.49 crores).
(b) Pursuant to the liquidation order under IBC proceedings executed on 30th December 2021 in respect of Lanco Babandh Power Others - - - - - -
Limited, the Company has written off an amount of ₹ 1160.16 crores after appropriating cash recoveries of ₹ 40.39 crores. Total - Gross (A) 1,768.83 268.26 182.07 - 2,219.16 - 2,219.16
(c) Pursuant to the Resolution Plan approved under IBC proceedings executed on 16th March 2022 in respect of Essar Power (MP) Investments outside India - - - - - - -
Limited (EPMPL), the Company has written off an amount of ₹ 724.40 crores after appropriating the recoveries of ₹ 620.60 Investments in India 1,768.83 268.26 182.07 - 2,219.16 - 2,219.16
crores (Cash ₹ 148.94 crores and Term Loan of ₹ 471.66 crores). Total - Gross (B) 1,768.83 268.26 182.07 - 2,219.16 - 2,219.16
(d) Pursuant to the Resolution Plan approved under IBC proceedings executed on 23rd March 2022 in respect of Amrit Jal Ventures Total Investments 1,768.83 268.26 182.07 - 2,219.16 - 2,219.16
Private Limited, the company has recovered the entire outstanding loan of ₹ 4.35 crores and ₹ 0.28 crores overdue interest after Less: impairment loss allowance (C) (28.72) - - - (28.72) - (28.72)
appropriating cash recoveries of ₹ 4.63 crores. Total - Net (D=A-C) 1,740.11 268.26 182.07 - 2,190.44 - 2,190.44
10.4 The Company obtains balance confirmation from the borrowers for the balances standing as on the Balance Sheet date. The summary
of the balance confirmations received from the borrowers is as under: 11.1 Details of investments
Particulars As at 31.03.2023 As at 31.03.2022 Particulars Investment measured at As at 31.03.2023 As at 31.03.2022
% Amount % Amount Number Amount Number Amount
(A) Total - Central/ State Government Securities (HQLAs)* Amortised Cost 137,932,800 1,431.74 133,932,800 1,374.51
Gross Loan Book of the Company 435,011.79 385,371.26
Debt Securities
Loan Assets for which balance confirmations have been received from borrowers 93% 406,179.64 93% 356,923.45
(i) Corporate Bonds (HQLAs)* 661.16 259.39
Loan Assets for which balance confirmations is yet to be received from borrowers 7% 28,832.15 7% 28,447.81
- 9.95% Uttar Pardesh Power Corporation Amortised Cost 3,000 300.00 - -
of which, Limited (UPPCL) 2032
Loans secured by tangible assets 54% 15,630.88 45% 12,813.68 - 8% Bonds of Mahanagar Telephone Nigam Amortised Cost 1,000 102.97 - -
Loans covered by Government Guarantee/ Loans to Government 25% 7,065.14 33% 9,295.96 Limited (MTNL) 2032
Unsecured loans 21% 6,136.12 22% 6,338.17 - 7.05% Bonds of Mahanagar Telephone Nigam Amortised Cost 850 88.12 850 88.15
Limited
10.5 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, - 6.65% Bonds of Food Corporation of India Amortised Cost 200 20.61 200 20.61
whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company - 7.19% Bonds of THDC India Limited Amortised Cost 250 26.31 250 26.32
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the - 8.69% Bonds of Damodar Valley Corporation Amortised Cost 200 21.35 200 21.62
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company - 7.30% Bonds of Power Grid Corporation of Amortised Cost 200 22.22 200 22.44
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. India Limited
- 5.78% Bonds of Chennai Petroleum Corporation Amortised Cost 150 15.62 150 15.63
11 Investments Limited
(₹ in Crores) - 6.11% Bonds of Bharat Petroleum Corporation Amortised Cost 100 10.49 100 10.51
Particulars Amor- At fair value Sub-total Others Total Limited
tised Cost Through Through Designated (At Cost) - 7.30% Bonds of NMDC Steel Limited Amortised Cost 200 21.35 200 21.54
Other Com- profit or at fair value - 7.39% Tax Free 15 years Secured Redeemable Amortised Cost 86,798 8.81 86,798 8.81
prehensive loss through profit Non Convertible Bonds of Housing and Urban
Income or loss Development Corporation(HUDCO)
(1) (2) (3) (4) (5= 1+2+3+4) (6) (7=5+6) - 7.35% Tax Free Bonds of National Highway Amortised Cost 42,855 4.60 42,855 4.60
As at 31st March, 2023 Authority of India Ltd. (NHAI)
Govt. Securities 1,431.74 - - - 1,431.74 - 1,431.74 - 7.39% Tax Free of National Highway Authority Amortised Cost 35,463 3.68 35,463 3.67
Debt Securities 766.90 - 562.34 - 1,329.24 - 1,329.24 of India Ltd. (NHAI)
Equity Instruments - 381.71 27.31 - 409.02 - 409.02 - 7.49% Tax Free Bonds of Indian Renewable Amortised Cost 61,308 6.22 61,308 6.68
Preference Shares 28.72 - - - 28.72 - 28.72 Energy Development Agency (IREDA)
Others - - - - - - - 7.35% Tax Free Bonds of Indian Railway Finance Amortised Cost 22,338 2.31 22,338 2.31
Total - Gross (A) 2,227.36 381.71 589.65 - 3,198.72 - 3,198.72 Corporation (IRFC)
298 299
(₹ in Crores)
11.2 Movement of Impairment Loss Allowance in respect of Investments:
Particulars Investment measured at As at 31.03.2023 As at 31.03.2022 (₹ in Crores)
- 7.35% Tax Free Bonds of National Bank for Amortised Cost 14,028 1.41 14,028 1.41 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Agriculture and Rural Development (NABARD) Opening Balance 28.72 -
- 8.76% Tax Free Bonds of Housing and Urban Amortised Cost 50,000 5.09 50,000 5.09 Add: Impairment loss allowance provided in respect to Redeemable Preference - 28.72
Development Corporation (HUDCO) Shares of Rattan India Power Limited (Refer Note 38)
(ii) Debt Securities (other than HQLAs) Less: Allowance utilised towards write-off of loans - -
- 7.99% Perpetual Bonds of Canara Bank Fair value through profit or loss 200 208.47 - Closing Balance 28.72 28.72
- 9.50% Perpetual Bonds of UCO Bank Fair value through profit or loss 228 228.79 -
- 3% Optionally convertible debentures- Series A Fair value through profit or loss 165,403,256 86.85 178,543,530 92.03 11.3 In terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ Restructuring , the
of Essar Power Transmission Co. Ltd. Company has received the following Investments:
- 3% Optionally convertible debentures- Series B Fair value through profit or loss 72,821,001 38.23 78,606,161 40.52 (i) During the current year:
of Essar Power Transmission Co. Ltd.
- Optionally convertible debentures- Series C of Fair value through profit or loss 18,635,162 - 18,635,162 - (a) Pursuant to the Resolution Plan approved under IBC proceedings in respect of Jhabua Power Limited, the company has
Essar Power Transmission Co. Ltd. ** been allotted 2,78,85,211 no. of equity shares having face value of ₹10/- each and 51,48,038 no. of 8.50% Non-Convertible
- 0% Non- Convertible Debentures (NCDs) of Amortised Cost 25,519,173 56.40 25,495,144 106.21 Debentures having face value of ₹100/- each.
Ferro Alloys Corporation Limited (b) Pursuant to the liquidation order passed under IBC proceedings in respect of Ind Barath Energy (Utkal) Limited, the company
- 8.50% Non- Convertible Debentures (NCDs) of Amortised Cost 4,933,536 49.34 - - has been allotted 127 no. of equity shares having face value of ₹10/- each
Jhabua Power Limited
- 0.01% Optionally convertible Debentures Fair value through profit or loss 213,803,170 - 213,803,170 - (ii) During the previous year:
(OCD) Series A of R.K.M PowerGen Private Ltd. ** Company has not received any instruments in terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One
- 0.01% Optionally convertible Debentures Fair value through profit or loss 6,303,032 - 6,303,032 - Time Settlement (OTS)/ Restructuring.
(OCD) Series B of R.K.M PowerGen Private Ltd. **
- 0.01% Optionally convertible Debentures Fair value through profit or loss 10,474,150 - 10,474,150 - Refer note 10.3 for further details.
(OCD) Series Ai of R.K.M PowerGen Private Ltd. ** 11.4 The Company has elected an irrevocable option to designate some of the equity instruments at FVOCI (Fair Value through Other
(B) Total - Debt Securities (i+ii) 1,329.24 498.15 Comprehensive Income). The Company’s operation comprise of only one business segment i.e. providing financial assistance to
Equity Instruments power, logistic and infrastructure sector. Thus, in order to isolate Standalone Statement of Profit & Loss from price fluctuations of these
(i) Total - Subsidiary - - instruments, management believes that this provides a more meaningful presentation, rather than classifying them at FVTPL (Fair
(ii) Others Value through Profit & Loss).
- NHPC Ltd. Fair value through other 16,351,580 65.73 18,843,184 52.38 Details of FVOCI investments derecognised during the year
- HUDCO Ltd. Fair value through other 347,429 1.50 347,429 1.14 (₹ in Crores)
comprehensive income Name of the company FY 2022-23 FY 2021-22
- Energy Efficiency Services Ltd. Fair value through other 218,100,000 140.43 218,100,000 214.74 No. of shares Fair Value Cumulative No. of shares Fair Value Cumulative
comprehensive income derecognised as on de- Gain/ (loss) on derecognised as on de- Gain/ (loss) on
- Universal Commodity Exchange Ltd. Fair value through other 16,000,000 - 16,000,000 - recognition de-recognition recognition de-recognition
comprehensive income NHPC Limited* 2,491,604 10.13 4.70 156,459,022 430.62 89.86
- Jhabua Power Limited Fair value through other 27,885,211 173.42 - - Small is Beautiful** - - - 6,152,200 0.55 (5.60)
comprehensive income * During the FY 22-23, the Company has sold 24,91,604 equity shares of NHPC Limited (previous year 15,64,59,022 numbers) considering the market scenerio for a
- Ind Barath Energy (Utkal) Limited Fair value through other 127 0.63 - - consideration of ₹ 10.13 crores through stock exchange. The shares have thus been derecognised and the cumulative gain (net of tax) on such sale has been transferred
comprehensive income from other comprehensive income to retained earnings.
- Rattan India Power Ltd. Fair value through profit or loss 92,568,105 27.31 92,568,105 49.52 ** During the FY 21-22, the Company has derecogniesd 61,52,200 units of ‘Small is Beautiful’ Venure Capital Fund, consequent to full and final settlement upon
- R.K.M PowerGen Private Ltd. Fair value through profit or loss 181,790,667 - 181,790,667 - liquidation of the fund. As a result, the Company has written off an amount of ₹5.60 crores after appropriating cash recoveries of ₹0.55 crores
Total - Others 409.02 317.78 12 Other financial assets
(C) Total - Equity Instruments (i+ii) 409.02 317.78
The Company has categorised all the components under ‘Other Financial Assets’ at Amortised Cost in accordance with the requirements
Preference Shares
of Ind AS 109.
- Redeemable, issued by Rattan India Power Ltd. Amortised cost 28,720,978 28.72 28,720,978 28.72 (₹ in Crores)
- Optionally Convertible, issued by Rattan India Fair value through profit or loss 43,303,616 - 43,303,616 -
Power Ltd. Particulars As at 31.03.2023 As at 31.03.2022
(D) Total - Preference Shares 28.72 28.72 (A) Loans to Employees (Refer Note No. 12.1) 44.56 41.95
Others (B) Advances to Employees 0.49 0.27
(E) Total - Others - - (C) Loans & Advances to Ultimate Holding Company 3.54 -
Total Investments (F= A to E) 3,198.72 2,219.16 (D) Security Deposits 1.52 1.67
Refer note 55.1 for valuation technique of the (E) Recoverable from Govt. of India
investments shown at fair value Towards GoI Fully Serviced Bonds (Refer Note No. 22.5) 24,318.29 24,318.29
Less: impairment loss allowance (G) (28.72) (28.72)
(F) Other amounts recoverable 149.35 144.30
Total - Net (H=F-G) 3,170.00 2,190.44
Less: Impairment Loss allowance (Refer Note No. 12.2) (95.21) (91.17)
Refer note 55.1 for valuation technique of the investments shown at fair value
* High Quality Liquid Assets (HQLAs) maintained as per RBI Circular dated Novemeber 4, 2019 Other Amounts Recoverable (Net) 54.14 53.13
** Received against unsustainable portion of debt in terms of the settlement under Insolvency and Bankruptcy Code (IBC) proceedings/ One Time Settlement (OTS)/ Restructuring Total (A to F) 24,422.54 24,415.31
300 301
12.1 Details of Loans to Employees (Considered Good) Particulars Opening Recognised in Recognised Others Closing
The Company has extended loans to employees with specified terms and repayment schedule, categorised at Amortised Cost in
accordance with the requirements of Ind AS 109. Deferred Tax Liabilities
(₹ in Crores) Depreciation and Amortisation 12.46 14.03 - - 26.49
Particulars As at 31.03.2023 As at 31.03.2022 Unamortised Foreign Currency 151.05 67.25 - - 218.30
(A) Secured Loans Exchange Fluctuations
- To Key Managerial Personnel 0.12 0.10 Financial assets and liabilities measured 216.24 15.87 - - 232.11
- To employees Other than Key Managerial Personnel 28.28 25.22 at amortised cost
Sub-total (A) 28.40 25.32 Fair valuaton of Debt Securities 28.17 37.02 - - 65.19
(B) Unsecured Loans Total Deferred Tax Liabilities 407.92 134.17 - - 542.09
- To Key Managerial Personnel 0.10 0.08
Total Deferred Tax Assets (Net) 3,160.12 (157.65) 305.09 - 3,307.56
- To Others 16.06 16.55
Sub-total (B) 16.16 16.63 Significant components of net deferred tax assets and liabilities for the year ended 31st March 2022 are as follows
Total (A+B) 44.56 41.95 (₹ in Crores)
The figures above include interest accrued on such loans amounting to ₹ 9.27 crores (Previous year ₹8.45 crores). Particulars Opening Recognised in Recognised Others Closing
12.2 Movement of impairment loss allowance on other financial assets
(₹ in Crores) Deferred Tax Assets
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Expected Credit Loss 2,765.16 716.14 - - 3,481.30
Opening balance 91.17 88.53 Provision for Earned Leave 4.71 1.92 - - 6.63
Add: Created during the year 9.77 10.23 Provision for Medical Leave 5.26 0.15 - - 5.41
Less: Reversed/ Adjusted during the year (5.73) (7.59)
Fair Valuation of Investments 3.57 2.29 2.55 - 8.41
Provision for Other Expenses 0.72 0.50 - - 1.22
13 Current tax assets (net) Fair Valuation of Derivatives 27.81 11.16 26.09 - 65.07
(₹ in Crores)
Total Deferred Tax Assets 2,807.23 732.16 28.64 - 3,568.04
Advance Income-tax & TDS 2,956.82 3,296.66 Deferred Tax Liabilities
Less: Provision for Income Tax (2,655.88) (3,110.11) Depreciation and Amortisation 1.61 10.85 - - 12.46
Sub-Total (1) 300.94 186.55 Unamortised Foreign Currency 153.26 (2.21) - - 151.05
Tax Deposited on income tax demands under contest 5.26 5.26 Exchange Fluctuations
Provision for income tax for demand under contest (0.25) (0.25) Financial assets and liabilities measured 191.33 24.90 - - 216.24
Sub-Total (2) 5.01 5.01 at amortised cost
Current tax assets (Net) 305.95 191.56 Fair valuaton of Debt Securities - 28.17 - - 28.17
14 Deferred tax assets (net) Total Deferred Tax Liabilities 346.20 61.71 - - 407.92
(₹ in Crores) Total Deferred Tax Assets (Net) 2,461.03 670.44 28.64 - 3,160.12
Deferred Tax Assets (Net) 3,307.56 3,160.12
14.1 Significant components of net deferred tax assets and liabilities for the year ended 31st March 2023 are as follows
(₹ in Crores)
Particulars Opening Recognised in Recognised Others Closing
Deferred Tax Assets
Expected Credit Loss 3,481.30 (104.71) - - 3,376.59
Provision for Earned Leave 6.63 0.17 - - 6.80
Provision for Medical Leave 5.41 (0.22) - - 5.19
Provision for Other Expenses 1.22 (1.10) - - 0.12
Fair Valuation of Invetments 8.41 6.40 (0.32) - 14.49
Fair Valuation of Derivatives 65.07 75.98 305.41 - 446.46
Total Deferred Tax Assets 3,568.04 (23.48) 305.09 - 3,849.65
302 303
15 Property, Plant & Equipment and Intangible Assets
Particulars Property, Plant & Equipment Capital Work-in- Intangible Other
Progress Assets under Intangible
Development Assets
Freehold Land Right-of-Use Buildings Plant & Furniture & EDP Equipments Office Vehicles Total Immovable Computer Computer
Land equipment Fixtures Equipments Property Software Software
Gross carrying value
As at 31.03.2021 110.39 1.59 130.40 - 20.89 24.33 17.86 0.40 305.86 335.67 0.77 13.80
Additions - - 303.73 19.90 47.55 3.34 7.16 - 381.68 32.35 - 1.02
Borrowings Cost Capitalised - - - - - - - - - 5.10 - -
Disposals - - 3.30 - 0.69 0.96 0.87 - 5.82 367.05 0.77 0.01
As at 31.03.2022 110.39 1.59 430.83 19.90 67.75 26.71 24.15 0.40 681.72 6.07 - 14.81
As at 31.03.2022 110.39 1.59 430.83 19.90 67.75 26.71 24.15 0.40 681.72 6.07 - 14.81
Additions - - 26.07 0.20 3.64 5.49 7.76 0.14 43.30 22.69 - 0.01
Borrowings Cost Capitalised - - - - - - - - - 0.03 - -
Disposals/ Adjustments - - - 0.04 3.70 5.62 6.39 - 15.75 26.07 - 0.10
As at 31.03.2023 110.39 1.59 456.90 20.06 67.69 26.58 25.52 0.54 709.27 2.72 - 14.72
Accumulated depreciation/ amortisation
As at 31.03.2021 - 0.35 9.81 - 7.68 16.77 10.21 0.34 45.16 - - 7.65
Adjustment for disposals - - 1.26 - 0.41 0.76 0.41 - 2.84 - - 0.01
As at 31.03.2022 - 0.37 13.51 0.95 10.94 19.21 12.32 0.37 57.67 - - 10.53
As at 31.03.2022 - 0.37 13.51 0.95 10.94 19.22 12.32 0.37 57.68 - - 10.53
Adjustment for disposals - - - - 1.28 4.14 3.75 0.01 9.18 - - 0.10
As at 31.03.2023 - 0.39 20.61 2.23 15.71 18.70 12.08 0.38 70.10 - - 13.09
Net block as at 31.03.2022 110.39 1.22 417.32 18.95 56.81 7.49 11.83 0.03 624.04 6.07 - 4.28
Net block as at 31.03.2023 110.39 1.20 436.29 17.83 51.98 7.88 13.44 0.16 639.17 2.72 - 1.63
15.1 The formalities regarding registration of title deed in respect of an immovable property acquired by the Company is yet to
be executed. The details are as below:
(a) As at 31 st March 2023

Development, New Delhi SCOPE a central government Complex has not been
registered in the name of the Company.
(b) As at 31st March 2022

Development, New Delhi SCOPE a central government Complex has not
been registered in the name of the Company.
304 305
15.2 As on 31st March 2023, certain Property, Plant & Equipment has been pledged as security against secured borrowings of the 16 Other non-financial assets
Company as per the details below: (₹ in Crores)
(₹ in Crores)
Unsecured, considered good
st
As at 31 March 2022
st
(A) Capital Advances 7.26 8.19
Gross Carrying Value 3.48 3.48 (B) Other Advances 4.50 3.56
Net Carrying Value 2.36 2.41 (C) Balances with Govt. Authorities 30.81 42.20
15.3 Capital Work in Progress (CWIP) (D) Pre-Spent Corporate Social Responsibility (CSR) Expenses 7.70 0.48
(E) Prepaid Expenses 13.28 3.12
(a) CWIP ageing schedule (F) Deferred Employee Cost 10.84 11.11
(₹ in Crores) (G) Other Assets 0.01 0.02
st
As at 31 March 2022
st Total (A to G) 74.40 68.68
Amount in CWIP for a period of Total Amount in CWIP for a period of Total 17 Assets classified as held for sale
Less 1-2 2-3 More Less 1-2 2-3 More (₹ in Crores)
than 1 years years than 3 than 1 years years than 3 Particulars As at 31.03.2023 As at 31.03.2022
year years year years (A) Disposal Group
Projects in Progress (i) Investment in associates 0.65 0.40
- REC World - - - - - 4.59 - - - 4.59 (ii) Loans to associates 13.39 12.83
Headquarter at (iii) Provision for impairment on assets classified as held for sale (9.73) (9.71)
Gurugram
Sub-Total (i+ii+iii) 4.31 3.52
- REC Township at 1.24 0.08 - 1.40 2.72 0.08 - 1.40 - 1.48
(B) Assets Classified as Held for Sale-Building* 0.34 0.86
Gurugram
Total (B) 0.34 0.86
Total 1.24 0.08 - 1.40 2.72 4.67 - 1.40 - 6.07
Grand Total (A+B) 4.65 4.38
There are no capital work in progress as on the reporting year where activity has been suspended.
Liabilities directly associated with assets classified as held for sale
(b) CWIP completion schedule (C) Payable to associates 0.02 0.01
(₹ in Crores) Total (C) 0.02 0.01
Particulars As at 31st March 2023 As at 31st March 2022 Net Assets held for sale (A+B-C) 4.63 4.37
To be completed in Total To be completed in Total 17.1 Investments in associates
(₹ in Crores)
Less 1-2 2-3 More Less 1-2 2-3 More
than 1 years years than 3 than 1 years years than 3 Particulars As at 31.03.2023 As at 31.03.2022
year years year years Investments in Equity Instruments of associates (fully paid up)
Projects in Progress equity shares of ₹ 10/- each
- REC World - - - - - 4.59 - - - 4.59 Chandil Transmission Limited 0.05 0.05
Headquarter at Dumka Transmission Limited 0.05 0.05
Gurugram Koderma Transmission Limited 0.05 0.05
- REC Township at - - 2.72 - 2.72 - - - 1.48 1.48 Mandar Transmission Limited 0.05 0.05
Gurugram Bidar Transmission Limited 0.05 0.05
Total - - 2.72 - 2.72 4.59 - - 1.48 6.07 MP Power Transmission Package I Limited - 0.05
15.4 There has been no revaluation of Property, Plant & Equipment and Intangible Assets during the year (previous year Nil). Rajgarh Transmission Limited - 0.05
ER NER Transmission Limited - 0.05
15.5 In the opinion of management, there are no events or changes in circumstances that indicate the impairment of PPE and Intangible
Assets in terms of Ind AS 36 ‘Impairment of Assets’. Accordingly, no provision for impairment has been made. Beawar Transmission Limited 0.05 -
Khavda II-D Transmission Limited 0.05 -
15.6 While the Company has not made any specific borrowings for construction of a qualifying asset, the Company has capitalised
an amount of ₹ 0.03 crores (previous year ₹ 5.10 crores) borrowing costs on account of general borrowings at an average rate of KPS1 Transmission Limited 0.05 -
borrowings of 7.00% (previous year 7.94%) for the Company in terms of Ind AS 23 ‘Borrowing Costs’. Ramgarh II Transmission Limited 0.05 -
15.7 Disclosure in respect of Intangible Assets as required under Ind-AS 38 “Intangible Assets” Sikar Khetri Transmission Limited 0.05 -
Luhri Power Transmission Limited 0.05 -
Amortisation Rate 20% (100% in case the total cost of the asset is ₹ 5,000 or less)
Meerut Shamli Power Transmission Limited 0.05 -
NERES XVI Power Transmission Limited 0.05 -
Total 0.65 0.40
306 307
17.2 Loans to Associates 18 Trade Payables
Trade Payables
Chandil Transmission Limited 2.54 2.54
Total outstanding dues of MSMEs - -
Dumka Transmission Limited 2.48 2.48
Total outstanding dues of creditors other than MSMEs 41.68 36.48
Mandar Transmission Limited 2.23 2.22
Total 41.68 36.48
Koderma Transmission Limited 2.28 2.28
MP Power Transmission Package I Limited - 1.99 18.1 Trade Payables ageing schedule
(₹ in Crores)
Rajgarh Transmission Limited - 0.28
Particulars Outstanding as at 31st March 2023
ER NER Transmission Limited - 0.28
Less than 1 1-2 years 2-3 years More than 3 Total
Receivable from SPV-Yet to Incorporate - 0.76 year years
Bidar Transmission Limited 0.10 - (i) MSME
Sikar Khetri Transmission Limited 0.67 - - Disputed - - - - -
KPS1 Transmission Limited 0.58 - - Others - - - - -
Sub-total (i) - - - - -
Ramgarh II Transmission Limited 0.70 -
(ii) Other than MSME
Beawar Transmission Limited 0.71 -
- Disputed - - - - -
Luhri Stage-I HEP 0.48 - - Others 16.31 12.64 0.33 12.40 41.68
Meerut Shamli Power Transmission Limited 0.43 - Sub-total (ii) 16.31 12.64 0.33 12.40 41.68
NERES XVI Power Transmission Limited 0.19 - Total (i+ii) 16.31 12.64 0.33 12.40 41.68
Total 13.39 12.83 (₹ in Crores)
17.3 Liabilities directly associated with assests classified as held for sale Particulars Outstanding as at 31 March 2022
st
(₹ in Crores) Less than 1 1-2 years 2-3 years More than 3 Total
year years
(i) MSME
Bidar Transmission Limited - 0.01
- Disputed - - - - -
Khavda II-D Transmission Limited 0.02 -
- Others - - - - -
Total 0.02 0.01
Sub-total (i) - - - - -
17.4 Provision for impairment on assets classified as held for sale (ii) Other than MSME
(₹ in Crores) - Disputed - - - - -
Particulars As at 31.03.2023 As at 31.03.2022 - Others 15.02 8.38 11.30 1.78 36.48
Chandil Transmission Limited 2.59 2.59 Sub-total (ii) 15.02 8.38 11.30 1.78 36.48
Dumka Transmission Limited 2.53 2.53 Total (i+ii) 15.02 8.38 11.30 1.78 36.48
Mandar Transmission Limited 2.28 2.27 19 Debt Securities

Koderma Transmission Limited 2.33 2.33
The Company has categorised all debt securities at amortised cost in accordance with the requirements of Ind AS 109.
Total 9.73 9.71 (₹ in Crores)
17.5 Jharkhand Urja Sancharan Nigam Limited (JUSNL) has cancelled RFQ and RFP of transmission projects in State of Jharkhand. Particulars As at 31.03.2023 As at 31.03.2022
These projects have been kept in abeyance w.e.f. 01.10.2020. RECPDCL vide letters dated 14.10.2020, 06.11.2020 and 28.07.2021 Face Value Amortised Cost Face Value Amortised Cost
has communicated JUSNL regarding recovery of expenses incurred on these SPVs. However, no communication has been received
(A) Secured Long-Term Debt Securities
from JUSNL in this regard. As the bidding process of these SPVs has been cancelled and there is less probability of recovery of
expenses already incurred, hence as an accounting prudence provision for impairment loss of ₹0.02 crore (previous year ₹9.71 (i) Institutional Bonds 1,955.00 2,029.81 1,955.00 2,065.31
crore) has been created. (ii) 54EC Capital Gain Tax Exemption Bonds 35,866.55 37,124.32 24,146.13 25,025.49
(iii) Tax Free Bonds 10,261.64 10,624.41 11,763.30 12,158.86
17.6 Management had incorporated these entities with a view to sell them off as per the guidelines of Ministry of Power, through the bid
(iv) Bond Application Money pending allotment 1,720.36 1,719.42 1,291.54 1,291.13
process prescribed by Ministry of Power. There is no possibility that management will have benefits from these entities other than
selling them off, hence all these investments (along with the related assets and liabilities) has been classified as ‘held for sale’. Sub-total (A) 49,803.55 51,497.96 39,155.97 40,540.79
(B) Unsecured Long-Term Debt Securities
17.7 With a view to monetise its idle assets, during the year the Company has disposed certain residential building units through e-auction
(i) Institutional Bonds 148,262.70 152,705.20 144,074.60 148,998.67
process, with carrying value ₹0.56 crores (previous year ₹1.18 crores), classified under “Assets classified as held for sale” as required
under Ind-AS 105. Such sale has resulted in gain of ₹4.08 crores during the current year (previous year ₹30.19 crores) (refer note 33). (ii) Infrastructure Bonds 3.96 8.63 3.96 8.00
(iii) Foreign Currency Bonds 32,886.78 32,690.54 30,322.85 30,027.15
Further, residential building units with carrying value ₹0.34 crores (previous year ₹0.86 crores) classified under “Assets classified as held Sub-total (B) 181,153.44 185,404.37 174,401.41 179,033.82
for sale” are pending for disposal as at 31st March 2023. The process for their disposal is expected to be completed during the year
Total - Debt Securities (A+B) 230,956.99 236,902.33 213,557.38 219,574.61
2023-24 through e-auction process.
308 309
Debt Securities issued in/ outside India Series 2013-14 Series 3A & 3B 1,350.00 1,413.90 1,350.00 1,413.35
(i) Debt Securities in India 198,070.21 204,211.79 183,234.53 189,547.46 Redeemable at par. Bonds amounting to ₹209.00 crores
(ii) Debt Securities outside India 32,886.78 32,690.54 30,322.85 30,027.15 are redeemable on 29.08.2023 and ₹1,141.00 crores are
Total - Debt Securities 230,956.99 236,902.33 213,557.38 219,574.61 redeemable on 29.08.2028 with interest rates varying
from 8.01% to 8.46% payable annually
Series 2013-14 Series 4A & 4B 150.00 155.54 150.00 155.48
19.1 Details of Secured Long-Term Debt Securities - Refer Note 20.6 for details of the security Redeemable at par. Bonds amounting to ₹105.00 crores
(i) Institutional Bonds are redeemable on 11.10.2023 and ₹45.00 crores are
(₹ in Crores) redeemable on 11.10.2028 with interest rates varying
Particulars As at 31.03.2023 As at 31.03.2022 from 8.18% to 8.54% payable annually
Face Value Amortised Cost Face Value Amortised Cost Series 2013-14 Tranche 1 3,410.60 3,499.26 3,410.60 3,497.90
Redeemable at par. Bonds amounting to ₹575.06
123-IIIB Series - 9.34% Redeemable at par on 23.08.2024 1,955.00 2,029.81 1,955.00 2,065.31
crores are redeemable on 25.09.2023, ₹2,810.26 crores
Total - Institutional Bonds 1,955.00 2,029.81 1,955.00 2,065.31 are redeemable on 25.09.2028 and ₹ 55.28 crores are
redeemable on 26.09.2033 with interest rates varying
(ii) 54EC Capital Gain Tax Exemption Bonds
from 8.01% to 8.71% payable annually
(₹ in Crores)
Series 2013-14 Tranche 2 1,057.40 1,085.19 1,057.40 1,084.77
crores are redeemable on 22.03.2024, ₹530.42 crores
Series XII (2018-19) - 5.75% Redeemable at par during 6,651.31 6,938.31 6,651.77 6,937.05 are redeemable on 23.03.2029 and ₹109.66 crores are
financial year 2023-24 redeemable on 24.03.2034 with interest rates varying
Series XIII (2019-20) - 5.75% Redeemable at par during 6,157.82 6,419.74 6,157.72 6,417.26 from 8.19% to 8.88% payable annually
financial year 2024-25 Series 2015-16 Tranche 1 696.56 711.46 696.56 711.30
Series XIV (2020-21) - 5.75% and 5% Redeemable at par 5,312.07 5,513.14 5,312.07 5,510.93 Redeemable at par. Bonds amounting to ₹105.93
during financial year 2025-26 crores are redeemable on 05.11.2025, ₹172.90 crores
Series XV (2021-22) - 5% Redeemable at par during 7,312.80 7,576.90 6,024.57 6,160.25 are redeemable on 05.11.2030 and ₹421.17 crores are
financial year 2026-27 redeemable on 05.11.2035 with interest rates varying
Series XVI (2022-23) - 5% Redeemable at par during 10,432.55 10,676.23 - - from 6.89% to 7.43% payable annually
financial year 2027-28
Total - Tax Free Bonds 10,261.64 10,624.41 11,763.30 12,158.86
Total - 54EC Capital Gain Tax Exemption Bonds 35,866.55 37,124.32 24,146.13 25,025.49
(iv) Bond Application Money Pending Allotment
(iii) Tax Free Bonds
(₹ in Crores)
(₹ in Crores)
Series 2015-16 Series 5A 300.00 306.39 300.00 306.33 54EC Capital Gain Tax Exemption Bonds 1,720.36 1,719.42 1,291.54 1,291.13
7.17% payable annually Redeemable at par on 23.07.2025 5% Redeemable at par after 5 years from the deemed date
Series 2011-12 2,160.33 2,288.71 2,160.33 2,287.99 of allotment
Redeemable at par. Bonds amounting to ₹2,160.33 Total - Bond Application Money Pending Allotment 1,720.36 1,719.42 1,291.54 1,291.13
crores are redeemable on 27.03.2027 with interest
rates varying from 8.12% to 8.32% payable annually 19.2 Details of Unsecured Long-Term Debt Securities
Series 2012-13 Series 2A & 2B 245.00 251.12 500.00 512.60 (i) Institutional Bonds
Redeemable at par. Bonds amounting to ₹245.00 crores (₹ in Crores)
are redeemable on 22.11.2027 with interest rates of Particulars As at 31.03.2023 As at 31.03.2022
7.38%payable annually Face Value Amortised Cost Face Value Amortised Cost
Series 2012-13 Tranche 1 842.04 861.98 2,007.35 2,055.08
crores are redeemable on 20.12.2027 with interest 107th Series - 9.35% Redeemable at par on 15.06.2022 - - 2,378.20 2,554.82
rates varying from 7.38% to 7.88% payable annually 186A Series - 6.90% Redeemable at par on 30.06.2022 - - 2,500.00 2,629.90
Series 2012-13 Tranche 2 49.71 50.86 131.06 134.06 150th Series - 7.03% Redeemable at par on 07.09.2022 - - 2,670.00 2,775.76
Redeemable at par. Bonds amounting to ₹49.71 crores 184B Series STRPP-C - 7.55% Redeemable at par on 26.09.2022** - - 300.00 311.59
are redeemable on 27.03.2028 with interest rates 152nd Series - 7.09% Redeemable at par on 17.10.2022 - - 1,225.00 1,264.38
varying from 7.04% to 7.54% payable annually 111-II Series - 9.02% Redeemable at par on 19.11.2022 - - 2,211.20 2,283.72
310 311
(₹ in Crores)
159th Series - 7.99% Redeemable at par on 23.02.2023 - - 950.00 957.53
188A Series - 7.12% Redeemable at par on 31.03.2023 - - 1,400.00 1,400.22
184A Series - 8.25% Partly Paid Debentures Redeemable at 1,160.80 1,209.72 870.60 907.18
114th Series - 8.82% Redeemable at par on 12.04.2023 4,300.00 4,667.81 4,300.00 4,667.36 par on 26.09.2029
195th Series - 6.92% Redeemable at par on 22.04.2023 2,985.00 3,179.66 2,985.00 3,179.43 192nd Series - 7.50% Redeemable at par on 28.02.2030 2,382.00 2,396.48 2,382.00 2,396.36
191A Series - 6.80% Redeemable at par on 30.06.2023 1,100.00 1,106.52 1,100.00 1,106.39 188B Series - 7.89% Redeemable at par on 31.03.2030 1,100.00 1,100.10 1,100.00 1,100.09
200th Series PP-MLD - 5.36% Redeemable at par on 30.06.2023* 500.00 573.12 500.00 546.01 189th Series - 7.92% Redeemable at par on 31.03.2030 3,054.90 3,054.97 3,054.90 3,054.91
184B Series STRPP-D - 7.55% Redeemable at par on 300.00 311.59 298.00 309.49 197th Series - 7.55% Redeemable at par on 11.05.2030 3,740.00 3,990.03 3,740.00 3,989.89
26.09.2023**
202A Series - 7.25% Redeemable at par on 30.09.2030 3,500.00 3,627.05 3,500.00 3,627.03
218B series - 7.69% Redeemable at par on 31.01.2033 2,004.40 2,036.80 - -
212th Series - Floating (linked to T-Bill) Redeemable at par on 2,500.00 2,573.36 2,500.00 2,538.84
214B Series - 7.50% Redeemable at par on 28.02.2033 1,947.60 1,960.18 - -
31.10.2024
214B (re-issue) Series - 7.50% Redeemable at par on 28.02.2033 3,000.00 2,984.49 - -
217th series - 7.53% Redeemable at par on 31.03.2033 500.00 510.86 - -
182nd Series - 8.18% Redeemable at par on 22.08.2034 5,063.00 5,314.68 5,063.00 5,314.67
183rd Series - 8.29% Redeemable at par on 16.09.2034 3,028.00 3,163.26 3,028.00 3,163.24
131st Series - 8.35% Redeemable at par on 21.02.2025 2,285.00 2,304.28 2,285.00 2,304.25
215th series - 7.65% Redeemable in 5 equal tranches on 3,889.00 3,992.12 - -
201A Series - 5.90% Redeemable at par on 31.03.2025 900.00 935.42 900.00 935.39
30.11.2033, 30.11.2034,30.11.2035,30.11.2036 and 30.11.2037
216B series - 7.67% Redeemable at par on 30.11.2037 2,000.00 2,049.92 - -
Total - Institutional Bonds 148,262.70 152,705.20 144,074.60 148,998.67
95-II Series - 8.75% Redeemable at par on 14.07.2025 1,800.00 1,913.49 1,800.00 1,913.49 * PP-MLD- Principal Protected Market Linked Debentures
136th Series - 8.11% Redeemable at par on 07.10.2025 2,585.00 2,671.58 2,585.00 2,670.75 ** STRPP- Separately Transferable Redeemable Principal Parts
204B Series - 5.81% Redeemable at par on 31.12.2025 2,082.00 2,111.49 2,082.00 2,111.47 (ii) Infrastructure Bonds
(₹ in Crores)
214A Series - 7.32% Redeemable at par on 28.02.2026 500.00 503.15 - - Particulars As at 31.03.2023 As at 31.03.2022
219 series - 7.60% Redeemable at par on 28.02.2026 3,148.70 3,186.42 - - Face Value Amortised Cost Face Value Amortised Cost
220B series - 7.69% Redeemable at par on 31.03.2033 with Put 1,600.10 1,605.47 - -
option exercisable on 31.03.2026 Series-II (2011-12) - Redeemable at par 3.96 8.63 3.96 8.00
218A series - 7.56% Redeemable at par on 30.06.2026 3,000.00 3,048.29 - - Total - Infrastructure Bonds 3.96 8.63 3.96 8.00
211th Series - 6.23% Redeemable at par on 31.10.2031 with 1,200.00 1,230.57 1,200.00 1,232.57
Put/ Call option exercisable on 31.10.2026 Details of Infrastructure Bonds issued are as under :
Series II (2011-12) allotted on 15.02.2012
142nd Series - 7.54% Redeemable at par on 30.12.2026 3,000.00 3,025.73 3,000.00 3,066.06 (₹ in Crores)
Rate of Interest As at As at Redemption Details
31.03.2023 31.03.2022
216A series - 7.55% Redeemable at par on 31.03.2028 1,701.50 1,701.13 - -
220A series - 7.77% Redeemable at par on 31.03.2028 2,000.00 2,006.58 - - 9.15% Cumulative 2.83 2.83 Redeemable on the date falling 15
years from the date of allotment
162nd Series - 8.55% Redeemable at par on 09.08.2028 2,500.00 2,637.42 2,500.00 2,637.39 9.15% Annual 1.13 1.13
Total 3.96 3.96
Amounts have been shown at face value
312 313
(iii) Foreign Currency Bonds 20.1 Details of Unsecured Long-term Borrowings
(₹ in Crores) (i) Term Loans from Banks
Face Value Amortised Cost Face Value Amortised Cost Particulars As at 31.03.2023 As at 31.03.2022
4.75% US $500 Mn Bonds - Redeemable at par on 19.05.2023 4,110.85 4,181.61 3,790.36 3,848.85 Principal O/s Amortised Cost Principal O/s Amortised Cost
5.250% US $700 Mn Bonds - Redeemable at par on 13.11.2023 5,755.18 5,858.35 5,306.50 5,387.23 - JP Morgan Chase Bank - - 1,500.00 1,500.00
3.375% US $650 Mn Bonds - Redeemable at par on 25.07.2024 5,344.10 5,366.61 4,927.46 4,941.02 ₹1,500 crores repaid on 23.09.2022
3.50% US $500 Mn Bonds - Redeemable at par on 12.12.2024 4,110.85 4,148.36 3,790.36 3,822.14 - Mizuho Bank - - 300.00 300.00
₹300 crores repaid on 21.10.2022
- Karnataka Bank 499.99 499.99 - -
3.875% US $450 Mn Green Bonds - Redeemable at par on 3,699.76 3,425.80 3,411.32 3,102.47
07.07.2027 ₹499.99 crores repayable on 15.05.2025
4.625% US $300 Mn Bonds - Redeemable at par on 22.03.2028 2,466.51 2,299.76 2,274.21 2,094.49 - Punjab & Sind Bank 700.00 700.00 - -
Total - Foreign Currency Bonds 32,886.78 32,690.54 30,322.85 30,027.15 ₹700 crores repayable on 09.12.2025
Global Medium Term Note (GMTN) Programme - Jammu & Kashmir Bank 299.95 299.95 300.00 300.05
₹299.95 crores repayable on 28.10.2026
The Company has a Global Medium Term Note (GMTN) Programme of USD 7 Billion which is listed on SGX-ST (Singapore Stock
- Karur Vysya Bank 250.00 250.05 250.00 250.04
Exchange - Securities Trading), LSE-ISM (London Stock Exchange – International Securities Market), Global Securities Market (GSM) of the India INX
(India International Exchange) and NSE IFSC (NSE International Exchange). The summay of funds raised under the GMTN Programme is as below: ₹250 crores repayable on 29.10.2026
- Deutsche Bank 1,000.00 1,000.22 1,000.00 1,000.15
31.03.2023 31.03.2022 ₹500 crores repayable on 18.12.2023 and ₹500 crores repayable
Funds raised during the year under GMTN Programme Nil* USD 0.4 Billion on 15.06.2027
- South Indian Bank 500.00 500.00 300.00 300.00
Cumulative amount raised under GMTN Programme USD 4.4 Billion USD 4.4 Billion
Outstanding amount out of funds raised under GMTN Programme USD 4.0 Billion USD 4.0 Billion ₹300 crores repayable on 08.11.2026 and ₹200 crores repayable - -
* Subsequent to the Balance Sheet date, the Company has raised USD 750 Million through Green Bonds under its GMTN Programme. Consequently, as on the date of on 04.08.2027
signing of the Balance Sheet, the cumulative amount raised under GMTN Programme is USD 5.15 Billion and the outstanding amount out of funds raised under GMTN - HDFC Bank 16,350.00 16,449.77 12,000.00 12,040.15
Programme is USD 4.75 Billion. ₹2,000 crores repayable on 15.06.2023, ₹1,500 crores repayable
The amounts raised during the year have been utilized for the stated objects in the Offering Circular. There has been no default as on the on 19.06.2023, ₹300 crores repayable on 29.09.2023, ₹1,500
Balance Sheet date in the repayment of debt securities and borrowings and the Company has met all its debt servicing obligations, whether crores repayable on 30.09.2023, ₹350 crores repayable on
principal or interest, during the year. Further, there has not been any breach of financial covenants under the Loan Agreements as on the 11.10.2023, ₹350 crores repayable on 05.11.2023, ₹500 crores
Balance Sheet date. repayable on 15.01.2024, ₹850 crores repayable on 17.11.2026,
₹2,000 crores repayable on 31.03.2027, ₹2,000 crores repayable
20 Borrowings (Other than Debt Securities) on 07.09.2027, ₹2,500 crores repayable on 29.12.2027 and
₹2,500 crores repayable on 27.02.2028.
The Company has categorised all borrowings (other than debt securities) at Amortised Cost in accordance with the requirements of
Ind AS 109. - Indian Bank 1,500.00 1,500.00 - -
(₹ in Crores) ₹1,500 crores repayable in 6 equal annual instalments starting
Particulars As at 31.03.2023 As at 31.03.2022 from 04.08.2024 and final instalment on 04.08.2029
Principal O/s Amortised Cost Principal O/s Amortised Cost - Bank of Baroda 5,000.00 5,001.08 - -
(A) Unsecured Long-Term Borrowings ₹5,000 crores repayable in 6 annual instalments starting from
(i) Term Loans from Banks 56,298.20 56,402.09 42,878.32 42,919.86 30.09.2024 and final instalment due on 29.09.2029
(ii) Term Loans from Financial Institutions 6,000.00 6,000.64 6,800.00 6,800.00 - ICICI Bank 4,000.00 4,000.85 2,850.00 2,850.48
(iii) Term Loan in Foreign Currency 45,553.26 45,263.52 35,634.60 35,329.87 ₹4,000 crores repayable on 23.01.2030
(iv) Term Loans from Govt. of India (NSSF) 10,000.00 10,325.12 10,000.00 10,325.12 - HSBC Bank 3,402.49 3,403.23 3,402.49 3,403.03
(v) Lease Liability 0.02 0.02 0.03 0.03 ₹565 crores repayable on 19.05.2025, ₹187.49 crores repayable
Sub-total (A) 117,851.48 117,991.39 95,312.95 95,374.88 on 18.12.2025, ₹900 crores repayable on 25.03.2026, ₹500 crores
(B) Unsecured Short-Term Borrowings repayable on 06.07.2026, ₹500 crores repayable on 09.07.2026,
(i) FCNR (B) Loans 15,424.22 15,427.63 9,854.92 9,861.13 ₹85 crores repayable on 25.03.2030 and ₹665 crores repayable
(ii) Short Term Loans/ Loans repayable on demand from Banks 3,600.00 3,607.52 1,410.93 1,415.58 on 28.03.2030
(iii) Overdrafts/ Cash Credit repayable on demand from Banks 87.59 87.59 - - - Bank of India 1,499.87 1,500.18 749.87 750.00
Sub-total (B) 19,111.81 19,122.74 11,265.85 11,276.71 ₹749.87 repayable in 5 annual instalments starting from
Total - Borrowings (other than Debt Securities) (A to B) 136,963.29 137,114.13 106,578.80 106,651.59 27.09.2024 and final instalment on 27.09.2028 and ₹750 crores
Borrowings (other than Debt Securities) in/ outside India repayable on 31.03.2030
(i) Borrowings in India 91,410.03 91,850.61 70,944.20 71,321.72 - Union Bank of India 2,999.68 3,000.33 1,999.68 1,999.68
(ii) Borrowings outside India 45,553.26 45,263.52 35,634.60 35,329.87 ₹1,000 crores repayable on 04.01.2026 and ₹1,999.68 crores
Total - Borrowings (other than Debt Securities) 136,963.29 137,114.13 106,578.80 106,651.59 repayable in 5 annual instalments starting from 31.03.2027 and
Please refer Note No. 21.2 for reconciliation between the figure represented in Face Value and Amortised Cost final instalment on 31.03.2031
314 315
(₹ in Crores)
- State Bank of India 10,900.26 10,900.26 12,729.30 12,729.30
US $150 Mn - Repayable on 29.03.2024 and $ 75 Mn 1,233.25 1,224.65 1,137.11 1,125.35
₹699.84 crores repayable on 15.10.2023, ₹919.44 crores repayable on 14.05.2024
repayable in 2 annual instalments due on 05.09.2023 and US $100 Mn - Repayable on 01.07.2024 822.17 830.83 758.07 755.34
05.03.2024, ₹3,569.93 crores repayable in 5 semi-annual
SG $72.07 Mn - Repayable on on 30.03.2025 445.48 440.55 403.21 396.92
instalments starting from 15.07.2023 and last instalment due
on 15.07.2025, ₹1,711.19 crores repayable on 12.12.2027 and US $75 Mn - Repayable on 30.03.2025 616.63 606.46 568.55 561.90
₹3,999.86 crores repayable in structured instalments starting ¥ 10,519 Mn - Repayable on 25.09.2025 650.07 643.21 654.60 645.86
from 29.10.2023 and last instalment on 29.10.2031 US $170 Mn - $100 Mn repayable on 26.03.2025 and $ 70 1,397.69 1,400.67 1,288.72 1,288.65
- Punjab National Bank 4,995.97 4,996.19 4,996.98 4,996.98 Mn repayable on 06.10.2025
₹1,996.66 crores repayable in 3 annual instalments with first US $425 Mn - Repayable on 16.03.2026 3,494.22 3,467.48 3,221.80 3,207.65
instalment due on 27.08.2023, and ₹1,999.66 crores repayable US $600 Mn - Repayable on 25.08.2026 4,933.01 4,899.73 4,548.43 4,499.53
on 11.11.2026 and ₹999.66 crores repayable in 10 semi-annual US $75 Mn - Repayable on 07.10.2026 616.63 626.45 568.55 565.00
instalments starting from 29.03.2028 and final instalment due US $1175 Mn - Repayable on 29.12.2026 9,660.49 9,500.21 8,907.33 8,751.96
on 29.12.2031 ¥ 37,506.63 Mn - Repayable on 03.03.2027 2,317.91 2,285.95 2,334.04 2,293.52
- Central Bank 2,399.99 2,399.99 500.00 500.00 US $100 Mn - Repayable on 13.06.2027 822.17 815.24 - -
₹1,499.99 repayable on 26.03.2024, ₹400 crores repayable on US $200 Mn - Repayable on 28.07.2027 1,644.34 1,640.92 - -
17.10.2025 and ₹500 crores repayable in 7 annual instalments US $150 Mn - Repayable on 13.09.2027 1,233.25 1,221.79 - -
starting from 28.02.2026 and final instalment due on 29.02.2032
SGD 213.21 Mn - Repayable on 27.10.2027 1,317.80 1,306.89 - -
Total - Unsecured Term Loans from Banks 56,298.20 56,402.09 42,878.32 42,919.86
€ 254.19 Mn - Repayable on 31.10.2027 2,277.77 2,258.06 - -
(ii) Term Loans from Others - Financial Institutions € 349.83 Mn - Repayable on 27.03.2028 3,134.74 3,085.56 - -
(₹ in Crores) US $300 Mn - Repayable on 02.06.2030 2,466.51 2,520.12 2,274.21 2,286.40
Particulars As at 31.03.2023 As at 31.03.2022 Sub-Total (3) 43,833.19 43,511.45 33,750.89 33,443.04
Principal O/s Amortised Cost Principal O/s Amortised Cost Total - Foreign Currency Borrowings (1+2+3) 45,553.26 45,263.52 35,634.60 35,329.87
- Indian Infrastructure Finance Company Ltd. (IIFCL) 5,500.00 5,500.53 6,800.00 6,800.00
(iv) Term Loans from Govt. of India - National Small Savings Fund (NSSF)
₹1,500 crores repayable on 23.02.2024, ₹500 crores repayable on (₹ in Crores)
14.03.2024, ₹1,000 crores repayable on 25.03.2026, ₹1,000 crores
repayable on 27.03.2026, ₹1,000 crores repayable on 09.08.2026 Particulars As at 31.03.2023 As at 31.03.2022
and ₹500 crores repayable on 28.07.2027 Principal O/s Amortised Cost Principal O/s Amortised Cost
- National Bank for Financing Infrastructure and 500.00 500.11 - - - Loan from NSSF 10,000.00 10,325.12 10,000.00 10,325.12
Development (NaBFID) ₹5, 000 crores repayable on 13.12.2028 and ₹5,000 crores
₹500 crores repayable in 7 equal annual instalment starting from repayable on 04.10.2029
31.03.2027 and last instalment due on 31.03.2033 Total - Term Loans from Govt. 10,000.00 10,325.12 10,000.00 10,325.12
Total - Term Loans from Others - Financial Institutions 6,000.00 6,000.64 6,800.00 6,800.00 20.2 Unsecured Short-Term Borrowings
(iii) Foreign Currency Borrowings (i) FCNR (B) Loans
Principal O/s Amortised Cost Principal O/s Amortised Cost Principal O/s Amortised Cost Principal O/s Amortised Cost
(1) ODA Loans - Guaranteed by Govt. of India US$200 Mn - Repaid on 24.05.2022 - - 1,516.14 1,517.78
JICA Loan - JICA-II repaid on 20.03.2023 - - 23.47 23.48 US$150 Mn - Repaid on 27.05.2022 - - 1,137.11 1,137.16
KfW-III Loan - Repayable in equal half-yearly instalments 141.51 142.17 222.81 223.55 US$200 Mn - Repaid on 03.06.2022 - - 1,516.14 1,516.21
of €5.26 Mn till 30.03.2024, next instalment falling due on US$25 Mn - Repaid on 07.06.2022 - - 189.52 189.72
30.06.2023 US$150 Mn - Repaid on 18.06.2022 - - 1,137.11 1,137.17
Sub-Total (1) 141.51 142.17 246.28 247.03 US$200 Mn - Repaid on 10.12.2022 - - 1,516.14 1,517.90
(2) ODA Loans - Without Govt. Guarantee US$75 Mn - Repaid on 14.12.2022 - - 568.55 569.21
KfW-IV Loan - Repayable in equal half-yearly instalments 1,578.56 1,609.90 1,637.43 1,639.80 US$200 Mn - Repaid on 30.12.2022 - - 1,516.14 1,517.91
of €12.00 Mn till 15.11.2030, next instalment falling due on US$100 Mn - Repaid on 23.02.2023 - - 758.07 758.07
15.05.2023 US$200 Mn - Repayable on 24.05.2023 1,644.34 1,644.34 - -
Sub-Total (2) 1,578.56 1,609.90 1,637.43 1,639.80 US$150 Mn - Repayable on 26.05.2023 1,233.25 1,233.44 - -
(3) Bilateral/ Syndicated Loans US$200 Mn - Repayable on 03.06.2023 1,644.34 1,644.58 - -
US $200 Mn - Repaid on 28.07.2022 - - 1,516.14 1,516.11
US $150 Mn - Repaid on 11.09.2022 - - 1,137.11 1,136.75
¥ 10,327.12 Mn - Repayable on 08.08.2023 638.22 635.36 642.66 636.04
US $250 Mn - Repayable on 29.08.2023 2,055.42 2,064.76 1,895.18 1,895.18 US$75 Mn - Repayable on 14.12.2023 616.63 616.63 - -
316 317
Particulars As at 31.03.2023 As at 31.03.2022 21.1 Ratings assigned by credit rating agencies and migration of ratings during the year
Particulars Rating
Domestic Long-term Borrowings CRISIL AAA, ICRA AAA, CARE AAA, IND AAA
Domestic Long Term Principal Protected Market Linked Debentures CRISIL PP-MLD AAA, ICRA PP-MLD AAA
€ 69.77 Mn - Repayable on 16.01.2024 625.17 627.48 - -
US$150 Mn - Repayable on 15.02.2024 1,233.25 1,233.47 - - Domestic Perpetual Bonds CRISIL AAA, CARE AA+
Total - FCNR (B) Loans 15,424.22 15,427.63 9,854.92 9,861.13 Domestic Short term Borowings CRISIL A1+, ICRA A1+, CARE A1+, IND A1+
International Long-term Issuer Rating BBB- (Fitch), Baa3 (Moody's)
20.3 Term Loans from banks/ financial institutions/ Govt. as mentioned in Note No. 20.1 (i), (ii) and (iv) have been raised at interest rates There has been no migration of ratings during the year.
ranging from 5.38% to 8.29% payable on monthly/quarterly/semi annual rests.
20.4 Foreign Currency Borrowings in Note No. 20.1(iii) have been raised fixed interest rates ranging from 0.65% to 1.86% per annum and 21.2 Reconciliation between carrying values and the contractual amounts outstanding in respect of Borrowings:
variable interest rates ranging from a spread of 13 bps to 210 bps over external benchmarks including 3/6 Months’ USD LIBOR (London (₹ in Crores)
Inter Bank Offered Rate), 3/6 Months’ EURIBOR (Euro Inter Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate), Particulars Debt Securities Other Subordinated Total
3/6 Months’ Term SOFR, SORA (Singapore Overnight Rate Average), TONAR (Tokyo Overnight Average Rate), SOFR (Secured Overnight Borrowings Liabilities
Financing Rate) and Credit Adjustment Spread (CAS) as applicable on transition of loans to new benchmark rates.
20.5 The Company has not borrowed any funds from the banks or financial institutions on the basis of security of current assets. Total Amount as per Ind-AS 236,902.33 137,114.13 6,773.30 380,789.76
20.6 Security Details of Secured Debt Securities and Borrowings Less: Interest accrued on Borrowings classified under the (6,729.19) (670.87) (296.95) (7,697.01)
same head as per Ind-AS
For all the secured bonds issued by the Company and outstanding as at balance sheet date, 100% security cover has been maintained Add: Ind-AS Adjustments including EIR 783.85 520.03 174.35 1,478.23
by way of mortgage on certain immovable properties and/or charge on the receivables of the Company. Total Borrowings Outstanding 230,956.99 136,963.29 6,650.70 374,570.98
The Bond Series 123-IIIB of Institutional Bonds are secured by way of first pari passu charge on the specified immovable property and As at 31st March 2022
the loan assets of the Issuer which are charged to other lender / trustee and as may be agreed between the Issuer and the Trustee, Total Amount as per Ind-AS 219,574.61 106,651.59 6,816.47 333,042.67
pursuant to the terms of the Bond Trust Deed with a minimum security cover of one time of the aggregate face value of amount of Less: Interest accrued on Borrowings classified under the (6,736.43) (430.69) (296.94) (7,464.06)
bonds outstanding at all times and amount of interest due thereon in favor of IDBI Trusteeship Services Ltd. same head as per Ind-AS
Tax Free Bonds issued during FY 2011-12 are secured by first pari passu charge on premises at Shop No. 12, Ground Floor, Block No. 35, Add: Ind-AS Adjustments including EIR 719.20 357.90 131.17 1,208.27
Church Road, Mylapore, Chennai and hypothecation of loan assets of ₹4,998.66 crores of MSEDCL in favour of Vistra ITCL (India) Ltd. Total Borrowings Outstanding 213,557.38 106,578.80 6,650.70 326,786.88
(formerly known as IL&FS Trust Company Ltd.). 21.3 The Company raises funds in different currencies through a mix of term loans from banks/ financial institutions/ Govt. agencies and
Tax Free Bonds issued during FY 2013-14 are secured by first pari passu charge on the loan assets (other than those that are exclusively bonds of different tenors through private placement of debt securities. The amounts raised during the year have been utilized for
charged/earmarked to lenders / other Trustees) of the Company in favour of SBICap Trustee Company Ltd. the stated objects in the offer document/ information memorandum. There has been no default as on the Balance Sheet date in the
repayment of debt securities, borrowings and subordinated liabilities and the Company has met all its debt servicing obligations,
The Bond Series XII and XIII of 54EC Capital Gain Tax Exemption Bonds and Tax Free Bonds issued during FY 2012-13 & 2015-16 are
whether principal or interest, during the year. Further, there has not been any breach of covenant of Debt Securities, Borrowings and
secured by first pari passu charge on (a) mortgage of premises at Sub Plot No. 8, TPS No 2, FP No. 584P, situated at Village Subhanpura,
Debt Securities issued by the company.
Distt Vadodara and (b) hypothecation of loan assets (other than those that are exclusively charged/ earmarked to lenders / other
Trustees) in favour of SBICap Trustee Company Ltd. 22 Other Financial Liabilities
(₹ in Crores)
The Bond Series XIV, XV and XVI of 54EC Capital Gain Tax Exemption Bonds are secured by first pari passu charge on hypothecation of loan
assets (other than those that are exclusively charged/ earmarked to lenders / other Trustees) in favour of SBICap Trustee Company Ltd. Particulars As at 31.03.2023 As at 31.03.2022
(A) Unpaid Dividends 6.79 6.39
Refer Note No. 10 and 15.2 for the carrying value of receivables and Property, Plant and Equipment (PPE) pledged as security.
(B) Unpaid Principal & Interest on Bonds
20.7 No charges or satisfaction are yet to be registered with Registrar of Companies (ROC) beyond the respective statutory date.
- Matured Bonds & Interest Accrued thereon 25.66 22.01
21 Subordinated Liabilities - Interest on Bonds 11.17 6.72
Sub-total (B) 36.83 28.73
The Company has categorised all subordinated liabilities at amortised cost in accordance with the requirements of Ind AS 109.
(C) Funds Received from Govt. of India for Disbursement 98,232.51 97,054.28
(₹ in Crores)
Add: Interest on such funds (net of refund) 24.17 20.87
Less: Disbursed to Beneficiaries (cumulative) (98,095.33) (96,182.75)
Undisbursed Funds to be disbursed as Subsidy/ Grant 161.35 892.40
(i) 115th Series - Subordinate Tier-II Bonds - 2,500.00 2,668.34 2,500.00 2,668.11
8.06% Redeemable at par on 31.05.2023 - - - - (D) Payables towards Bonds Fully serviced by Govt. of India 24,318.29 24,318.29
(ii) 175th Series - Subordinate Tier-II Bonds - 2,151.20 2,079.90 2,151.20 2,100.70 (E) Other Liabilities 821.85 462.92
8.97% Redeemable at par on 28.03.2029 Total (A to E) 25,345.11 25,708.73
(iii) 199th Series - Subordinate Tier-II Bonds - 1,999.50 2,025.06 1,999.50 2,047.66
7.96% Redeemable at par on 15.06.2030 22.1 Unpaid dividends, unpaid principal and interest on bonds include the amounts which have either not been claimed by the investors
Total - Subordinated Liabilities 6,650.70 6,773.30 6,650.70 6,816.47 or are on hold pending formalities pursuant to investors’ claims etc. The amount due to be transferred to Investor Education and
Protection Fund (IEPF) as at 31st March 2023 is ₹2.68 crores (₹1.22 crores as at 31st March 2022) which has been transferred within the
Subordinated Liabilities in/ outside India
prescribed time limit.
(ii) Borrowings outside India - - - - 22.2 Subsidy Under Accelerated Generation & Supply Programme (AG&SP):
Refer Note No. 21.2 for reconciliation between the figure represented in Face Value and Amortised Cost The Company is maintaining an Interest Subsidy Fund Account and was given AG&SP subsidy (for disbursement to the eligible
borrowers) by Govt. of India at net present value calculated at indicative rates and year in accordance with GOI’s letter vide D.O.No.
318 319
32024/17/97-PFC dated 23.09.1997 and O.M.No.32024/23/2001-PFC dated 07.03.2003 irrespective of the actual repayment schedule, 23 Current tax liabilities (net)
moratorium year and duration of repayment of the eligible schemes. The impact of difference between the indicative rate and year (₹ in Crores)
considered at the time of drawl and the actual can be ascertained only after the end of the respective schemes.
Net amount of ₹0.75 crores as at 31st March 2023 (₹0.73 crores as at 31st March 2022) represents the balance amount of interest subsidy Provision for Income Tax 51.92 18.01
fund, which is to be passed on to the borrowers against their interest liability arising in future, under Accelerated Generation & Supply
Programme (AG&SP), which comprises of the following :- Less: Advance Income-tax & TDS (41.27) (7.76)
(₹ in Crores) Current tax liabilities (Net) 10.65 10.25
24 Provisions
Opening Balance of Interest Subsidy Fund 0.73 0.71 (₹ in Crores)
Add: Interest earned during the year 0.02 0.02 Particulars As at 31.03.2023 As at 31.03.2022
Less: Interest subsidy passed on to the borrower - - Provisions for
Closing Balance of Interest Subsidy Fund 0.75 0.73 (A) Employee Benefits
Gratuity 2.68 0.34
22.3 Government of India has appointed REC Ltd. as a nodal agency for implementation of Deen Dayal Upadhyaya Gram Jyoti Yojna
(DDUGJY), Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) and Revamped Distribution Sector Scheme (RDSS). The funds Earned Leave Liability 27.75 25.57
received for disbursement to various agencies under the schemes are kept in a respective separate bank accounts. The undisbursed Post Retirement Medical Benefits - 0.71
funds for the schemes (including the funds received under erstwhile RGGVY Scheme) including interest earned thereto are classified Medical Leave Liability 20.61 21.49
under “Undisbursed Funds to be disbursed as Subsidy/ Grant” under the head “Other Financial Liabilities”.
Settlement Allowance 1.76 1.79
22.4 The movement in Interest on Subsidy/ Grant is explained as under: Economic Rehabilitation Scheme 4.17 4.15
(₹ in Crores) Long Service Award 2.89 2.25
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Incentive 33.89 28.47
Opening Balance 20.87 37.84 Others* 2.00 -
Add: Interest earned/Adjustment during the year 16.65 25.40 Sub-total (A) 95.75 84.77
Less: Amount refunded to Govt./Adjusted during the year (13.35) (42.37) (B) Others
Closing Balance 24.17 20.87 Expected Credit Loss on Letters of Comfort 15.87 20.90
Sub-total (B) 15.87 20.90
22.5 For meeting GOI’s funding requirement of DDUGJY Scheme, during the year, the Company has raised funds an aggregate amount of
₹ Nil (Previous year Nil) through unsecured, redeemable, non-convertible, taxable bonds in the nature of debentures of face value of Total (A+B) 111.62 105.67
₹10 lacs at par on private placement basis. As per Ministry of Finance (MoF) letter dated 2nd December, 2020 and 3rd March, 2021, the * created in compliance of order of Ministry of Power regarding regularisation of earlier adopted Pay Scales 1997 in respect of below Board Level Executives
repayment of principal and interest of the above bonds shall be made by GoI by making suitable budget provisions in the demand of at par with other CPSEs.
Ministry of Power. Accordingly, the amount of such bonds along-with interest is also appearing as recoverable by the Company from
Govt. of India (Note 12). 24.1 Movement of Expected Credit Loss provision on Letters of comfort
(₹ in Crores)
Details of the GoI Fully Serviced Bonds raised are as follows: Particulars As at 31.03.2023 As at 31.03.2022
(₹ in Crores)
Opening balance 20.90 9.09
Particulars Coupon Rate Interest Redemption As at As at
Add: Created during the year 5.48 17.18
Frequency Date 31.03.2023 31.03.2022
GoI-I Series 8.09% Semi-annual 21/3/2028 1,837.00 1,837.00 Less: Reversed/ Adjusted during the year (10.51) (5.37)
GoI-II Series 8.01% Semi-annual 24/3/2028 1,410.00 1,410.00 Closing balance 15.87 20.90
GoI-III Series 8.06% Semi-annual 27/3/2028 753.00 753.00 24.2 The Company has maximum credit risk exposure of ₹3,082.47 crores (previous year ₹4,068.95 crores) related to Letters of Comfort
issued to the banks, as a financial guarantee on behalf of the borrowers.
GoI-IV Series 8.70% Semi-annual 28/9/2028 3,000.00 3,000.00
GoI-V Series 8.54% Semi-annual 15/11/2028 3,600.00 3,600.00 25 Other Non-Financial Liabilities
(₹ in Crores)
GoI-VI Series 8.80% Semi-annual 22/1/2029 2,027.00 2,027.00
GoI-VII Series 8.60% Semi-annual 8/3/2029 1,200.00 1,200.00 Particulars As at 31.03.2023 As at 31.03.2022
GoI-VIII Series 8.30% Semi-annual 25/3/2029 4,000.00 4,000.00 (A) Sundry Liabilities Account (Funded Interest Capitalisation) 2.80 4.10
GoI- IX Series 7.14% Semi-annual 2/3/2030 1,500.00 1,500.00 (B) Unbilled Liability towards Capital Account 48.38 26.96
GoI- X Series 8.25% Semi-annual 26/3/2030 532.30 532.30 (C) Unamortised Fee on Undisbursed Loans 12.45 28.72
GoI- XI Series 7.20% Semi-annual 31/3/2030 1,750.00 1,750.00 (D) Advance received from Govt. towards Govt. Schemes 0.10 1.00
GoI- XII Series 6.45% Semi-annual 7/1/2031 1,000.00 1,000.00 (E) Statutory Dues 42.72 28.25
GoI- XIII Series 6.63% Semi-annual 28/1/2031 1,000.00 1,000.00 (F) Other Liabilities - 0.01
GoI- XIV Series 6.50% Semi-annual 26/3/2031 500.00 500.00 Total (A to F) 106.45 89.04
Total 24,109.30 24,109.30
320 321
26 Equity Share Capital 27 Instruments entirely equity in nature
No. of Shares Amount No. of Shares Amount Number Amount Number Amount
Authorised :
Fully paid up Perpetual Debts Instrument entirely equity in 5,584 558.40 5,584 558.40
Equity shares of ₹ 10 each 5,000,000,000 5,000.00 5,000,000,000 5,000.00 nature of ₹ 10 lakhs each
Issued, Subscribed and Paid up : Total 5,584 558.40 5,584 558.40
Fully paid up Equity shares of ₹ 10 each 2,633,224,000 2,633.22 1,974,918,000 1,974.92
27.1 Reconciliation of the number of perpetual securities outstanding at the beginning and at the end of the year
Total 2,633,224,000 2,633.22 1,974,918,000 1,974.92 (₹ in Crores)
26.1 Reconciliation of the number of shares outstanding at the beginning and at the end of the period Particulars For the year ended For the year ended
(₹ in Crores) 31.03.2023 31.03.2022
Particulars For the year ended 31.03.2023 For the year ended 31.03.2022 Number Amount Number Amount
No. of Shares Amount No. of Shares Amount Balance at the beginning of the year 5,584 558.40 5,584 558.40
Share Capital at the beginning of the period 1,974,918,000 1,974.92 1,974,918,000 1,974.92 Increase/ (Decrease) during the year - - - -
Balance at the end of the year 5,584 558.40 5,584 558.40
Add: Shares issued & allotted during the period 658,306,000 658.30 - -
Share Capital at the end of the period 2,633,224,000 2,633.22 1,974,918,000 1,974.92 27.2 Instrument holders holding more than 5% of Perpetual Debt Instruments entirely equity in nature as at Balance Sheet date:
26.2 Allotment of Bonus Shares during the year and during preceding five years Name of the Shareholder As at 31.03.2023 As at 31.03.2022
Number Percentage Number Percentage

During the year, the Company has issued 65,83,06,000 equity shares of ₹10 each as fully paid-up bonus shares in the ratio of 1 (One)
equity share for every 3 (Three) equity share outstanding on the record date i.e. 18th August 2022 by capitalising ₹658.31 crores out of the HVPNL Employees Pension Fund Trust 665 11.91% 665 11.91%
sum standing to the credit of ‘Securities Premium Account’. Except this, no Bonus Shares were issued during the preceding five years.
HPGCL Employees Pension Fund Trust 500 8.95% 500 8.95%
26.3 The Company has neither issued any equity shares pursuant to contract without payment being received in cash nor has there been
any buy-back of shares in the current year and five years immediately preceding the balance sheet date. 27.3 Company had issued Perpetual Debt Instruments of face value of ₹10 lakhs each, with no maturity and callable only at the option of
the Company after 10 years. The claims of the holders of the securities shall be (a) Superior to the claims of the holders of the equity
26.4 Rights, Preferences and Restrictions attached to Equity shares shares issued by the Issuer; and (b) Subordinated to the claims of all other creditors of the Issuer. The instruments carry a step up
provision if not called after 10 years. The payment of Coupons may be cancelled or suspended at the discretion of the Company. The
The holders of the equity shares of the Company are entitled to receive dividends as and when declared by the Company and enjoy coupon of the securities is not cumulative except where the Issuer shall not be liable to pay coupon and may defer the payment of
proportionate voting rights in case any resolution is put to vote. Further, the shareholders have all such rights, as may be available to coupon, if (i) The capital to risk assets ratio (“CRAR”) of the Issuer is below the minimum regulatory requirement prescribed by RBI; or
a shareholder of a listed public company, under the Companies Act, 2013 and rules made thereunder, Companies Act, 1956 (to the (ii) the impact of such payment results in CRAR of the Issuer falling below or remaining below the minimum regulatory requirement
extent applicable), SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Memorandum of Association and prescribed by RBI
Articles of Association of the Company.
As these securities are perpetual in nature and the Company does not have any redemption obligation and discretion on payment of
26.5 Shareholders holding more than 5% of fully paid-up equity shares as at Balance Sheet date: coupon, these have been classified as equity. Further, the periodic coupon payments are accordingly adjusted with retained earnings.
(₹ in Crores) 28 Other Equity
Name of the Shareholder As at 31.03.2023 As at 31.03.2022 (₹ in Crores)
No. of Shares Percentage No. of Shares Percentage Particulars As at 31.03.2023 As at 31.03.2022
Power Finance Corporation Limited 1,385,993,662 52.63% 1,039,495,247 52.63% (A) Other Reserves
HDFC Trustee Company Ltd. A/c HDFC Hybrid Debt Fund * 158,992,122 8.05% (i) Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 24,977.89 22,302.93
(ii) Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 - 196.82
26.6 Details of equity shares held by the Holding Company, including the subsidiaries and associates
(iii) Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934 8,025.15 5,814.00
(₹ in Crores)
(iv) Securities Premium 1,577.53 2,236.54
Name of the Company As at 31.03.2023 As at 31.03.2022
(v) Foreign Currency Monetary Item Translation Difference Account (790.44) (555.29)
No. of Shares Percentage No. of Shares Percentage
(vi) Capital Reserve 0.00 0.00
Power Finance Corporation Ltd. 1,385,993,662 52.63% 1,039,495,247 52.63%
(vii) General Reserve 12,036.27 11,839.45
26.7 Details of equity shares held by the promoters (B) Retained Earnings 10,313.78 7,186.05
(C) Other Comprehensive Income (OCI)
Name of the Promoter As at 31.03.2023 As at 31.03.2022
- Equity Instruments through Other Comprehensive Income (101.47) (37.98)
No. of Shares Percentage % change No. of Shares Percentage % change
during the during the - Effective Portion of Cash Flow Hedges 600.05 194.21
year year - Cost of Hedging reserve (1,709.87) (395.95)
The President of India - - - - - - Total - Other Equity (A+B+C) 54,928.89 48,780.78
Power Finance Corporation Ltd. 1,385,993,662 52.63% - 1,039,495,247 52.63% - Additions and deductions to the components of ‘Other Equity’ has been disclosed in ‘Statement of Changes in Equity’.
322 323
28.1 Drawdown/ Transfer from Reserves: Pursuant to regulatory guidelines and utilisation of reserves created for specific purposes, the 28.5 Securities Premium
Company has transferred the following amounts from different reserves to General Reserve: Securities Premium represents the premium received by the Company on issue of shares and debt securities. It is utilised in accordance
(i) During the financial year 2022-23 with the provisions of the Companies Act, 2013.
₹196.82 crores from Reserve for Bad & Doubtful Debts under Section 36(1)(viia)(c) of the Income Tax Act, 1961 on account of Detail of Movement during the year:
actual write-offs on loan assets and other recoverables. (₹ in Crores)
(ii) During the financial year 2021-22 Particulars For the year ended For the year ended
₹1,931.59 crores from Reserve for Bad & Doubtful Debts under Section 36(1)(viia)(c) of the Income Tax Act, 1961 on account of Balance as at the begining of the year 2,236.54 2,236.54
actual write-offs on loan assets and other recoverables.
Add: Transferred from Retained Earnings - -
28.2 Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 Less: Transferred to General Reserve - -
Less: Utilised for Bonus Issue of Equity Shares (658.30) -
Special Reserve created u/s 36(1) (viii) of the Income Tax Act, 1961 is maintained by the Company in order to enable the Company to Less: Expenses incurred on Bonus Issue of Equity Shares (0.71) -
avail tax benefits. As per section 36(1)(viii) of the Income Tax Act, 1961, the company is eligible for deduction not exceeding 20% of
profit derived from long term finance activity, provided such amount is transferred and maintained in special reserve account.
Detail of Movement during the year: 28.6 Foreign Currency Monetary Item Translation Difference Account
(₹ in Crores)
The company had opted towards an irrevocable option for amortising the foreign exchange fluctuation loss/gain on the long term
Particulars For the year ended For the year ended foreign currency monetary items over the balance period of such items in accordance with Para 46A of the erstwhile applicable
31st March, 2023 31st March, 2022 Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’. The Company opted to continue the policy of such
Balance as at the begining of the year 22,302.93 19,222.23 amortisation as per the previous GAAP in respect of the exchange differences arising from translation of long-term foreign currency
monetary items as on 31st March 2018 in line with the provisions of Ind-AS. The balance in this account represents the unamortised
Add: Transferred from Retained Earnings 2,674.96 3,080.70 gain/ (loss) which will be amortised over the balance period of the eligible long term foreign currency monetary liabilities.
Balance as at the end of the year 24,977.89 22,302.93 (₹ in Crores)
28.3 Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 Particulars For the year ended For the year ended
Reserve for Bad and doubtful debts u/s 36(1)(viia) of the Income Tax Act, 1961 is maintained by the Company in order to enable the Balance as at the begining of the year (555.29) (573.16)
Company to avail tax benefits. As per Section 36(1)(viia) of the Income Tax Act, 1961, the Company is eligible to avail deduction in Add: Foreign Currency Translation Gain/ Loss (-) on long term monetary items (487.03) (216.94)
respect of any provision/ reserve made for bad and doubtful debts, not exceeding five percent of the total income as per Income Tax during the year
Act. The reserve so maintained shall be primarily utilised for adjustment of actual bad debts or part thereof.
Less: Amortisation during the year 251.88 234.81
Detail of Movement during the year: Balance as at the end of the year (790.44) (555.29)
(₹ in Crores)
Particulars For the year ended For the year ended 28.7 General Reserve
31st March, 2023 31st March, 2022 General Reserve includes the amounts appropriated from the profits of the Company and also amounts transferred from
Balance as at the begining of the year 196.82 2,128.41 Statutory Reserves.
Add: Transferred from Retained Earnings - - Detail of Movement during the year:
(₹ in Crores)
Less: Transferred to General Reserve (196.82) (1,931.59)
Balance as at the end of the year - 196.82 Particulars For the year ended For the year ended
28.4 Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934
The Company is creating the Reserve Fund as required u/s 45IC of Reserve Bank of India Act, 1934, wherein at least 20% of net profit is Add: Transferred from Retained Earnings - -
required to be transferred before the declaration of dividend. No appropriation is allowed to be made from the reserve fund except for
the purpose as may be specified by the Reserve Bank of India from time to time and further, any such appropriation is also required to Add: Transferred from Reserve for Bad & Doubtful Debts u/s 36(1) (viia) of the 196.82 1,931.59
be reported to the Reserve Bank of India within 21 days from the date of such withdrawal. Income Tax Act, 1961
Add: Transferred from Debenture Redemption Reserve - -
(₹ in Crores) Add: Transferred from Impairment Reserve - -
Particulars For the year ended For the year ended Add: Transferred from Capital Reserve - 4.70
Add: Transferred from Retained Earnings 2,211.15 2,010.00 28.8 Equity Instruments through Other Comprehensive Income (OCI)
Less: Transferred to General Reserve - - The Group has elected to recognise changes in the fair value of certain investments in equity securities through other comprehensive
Balance as at the end of the year 8,025.15 5,814.00 income. These changes are accumulated within the OCI reserve within equity. The Group transfers amounts from this reserve to
retained earnings when the related equity securities are derecognised.
324 325
Detail of Movement during the year: 28.13 Detail of Movement in Retained Earnings during the year:
Particulars For the year ended For the year ended Particulars For the year ended For the year ended
31st March, 2023 31st March, 2022 31st March, 2023 31st March, 2022
Balance as at the begining of the year (37.98) 24.07 Balance as at the begining of the year 7,186.05 4,606.01
Add: Recognition through Other Comprehensive Income (net of taxes) (58.48) 24.74 Add: Profit for the year 11,166.98 10,035.69
Add: Reclassification of gain/ (loss) on sale/ extinguishment of FVOCI equity (5.01) (86.79)
Add: Remeasurement of Defined Benefit Plans (net of taxes) (4.48) (6.23)
instrument (net of taxes)
Balance as at the end of the year (101.47) (37.98) Add: Recognition through Other Comprehensive Income (net of taxes) - (0.02)
Less: Transferred to Special Reserve created u/s 36(1) (viii) of the Income Tax (2,674.96) (3,080.70)
Act, 1961
28.9 Effective Portion of Cash Flow Hedges
Less: Transferred to Reserve for Bad and doubtful debts u/s 36(1)(viia) of the - -
The Company uses derivative instruments in pursuance of managing its foreign currency risk and interest rate risk associated on Income Tax Act, 1961
borrowings. For hedging foreign currency and interest rate risk, the Company uses foreign currency forward contracts, cross currency Less: Transferred to Statutory Reserve u/s 45-IC of Reserve Bank of India Act, 1934 (2,211.15) (2,010.00)
swaps, foreign currency option contracts and interest rate swaps. To the extent the derivative contracts designated under the hedge
accounting are effective hedges, the change in fair value of the hedging instrument is recognised in ‘Effective Portion of Cash Flow Add: Reclassification of gain/ (loss) on sale/ extinguishment of FVOCI equity 5.01 86.79
Hedges’. Amounts recognised in such reserve are reclassified to the Statement of Profit or Loss when the hedged item affects profit or instrument
loss. Less: Coupon Payment on Instrument Entirely Equity in Nature (Perpetual Debt (33.30) (34.12)
Instruments) (Net of Taxes)
Less: Dividend paid during the year (3,120.37) (2,411.37)
(₹ in Crores) Balance as at the end of the year 10,313.78 7,186.05
31st March, 2023 31st March, 2022 28.14 Dividend declared/ proposed by the Company for Equity Shares of ₹ 10/- each
Balance as at the begining of the year 194.21 (165.61) (₹ in Crores)
Add: Recognition through Other Comprehensive Income (net of taxes) 405.84 359.82 Particulars For the year ended 31st March, 2023 For the year ended 31st March, 2022
Balance as at the end of the year 600.05 194.21 Dividend per Dividend Amount Dividend per Dividend Amount
Equity Share Equity Share
28.10 Cost of Hedging Reserve (₹) (₹ in Crores) (₹) (₹ in Crores)
The Company designates the intrinsic value of foreign currency option contracts as hedging instruments in ‘Cash Flow Hedge’ No. of Equity Share at the end of the year 2,63,32,24,000 1,97,49,18,000
relationships. The changes in fair value of the time value of an option are recognised in OCI and amortised to the Statement of Profit Interim Dividend 8.25 2,172.41 10.50 2,073.66
and Loss on a rational basis. Final/ Proposed Dividend - - 4.80 947.96
Total Dividend 8.25 2,172.41 15.30 3,021.62
(₹ in Crores) As per the requirements of Ind-AS 10 ‘Events after the Reporting Period’, the Company is not required to provide for the dividend proposed by the Board of
Directors after the end of the financial year. Such appropriation is made after the approval in the Annual General Meeting (AGM) in case of final dividend.
31st March, 2023 31st March, 2022 29 Interest Income
Balance as at the begining of the year (395.95) 41.45 (₹ in Crores)
Add: Recognition through Other Comprehensive Income (net of taxes) (1,313.92) (437.40) Particulars Year ended 31.03.2023 Year ended 31.03.2022
Balance as at the end of the year (1,709.87) (395.95) On Financial On Financial On Financial On Financial On Financial On Financial
Assets Assets Assets Assets Assets Assets
28.11 Detail of Movement in Capital Reserve during the year: measured measured at measured measured measured at measured
(₹ in Crores) at Fair Value Amortised at Fair Value at Fair Value Amortised at Fair Value
Particulars For the year ended For the year ended Profit or Profit or Loss
31st March, 2023 31st March, 2022 Loss
Balance as at the begining of the year - 4.70 (A) Interest on Loan Assets
Less: Transferred to General Reserve - (4.70) (i) Long term financing - 37,679.56 - - 37,613.68 -
Balance as at the end of the year - - (ii) Short term financing - 680.35 - - 197.16 -
28.12 Detail of Movement in Share of Other Comprehensive Income/ (loss) of Joint Venture accounted for using equity method Sub-total (A) - 38,359.91 - - 37,810.84 -
during the year: (B) Interest Income from Investments
(₹ in Crores) (i) Interest from Long Term Investments - 154.82 31.69 - 110.44 27.15
Particulars For the year ended For the year ended Sub-total (B) - 154.82 31.69 - 110.44 27.15
31st March, 2023 31st March, 2022 (C) Interest on Deposits with Banks
Balance as at the begining of the year - (1.19)
(i) Interest from Deposits - 118.51 - - 89.78 -
Add: Recognition through Other Comprehensive Income (net of taxes) - 1.19
Sub-total (C) - 118.51 - - 89.78 -
Balance as at the end of the year - -
326 327
(₹ in Crores)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 33 Other Income
(₹ in Crores)
On Financial On Financial On Financial On Financial On Financial On Financial
Assets Assets Assets Assets Assets Assets Particulars Year ended 31.03.2023 Year ended 31.03.2022
measured measured at measured measured measured at measured Net gain/ (loss) on disposal of assets classified as held for sale 4.08 30.19
at Fair Value Amortised at Fair Value at Fair Value Amortised at Fair Value Rental Income 12.82 16.32
Profit or Profit or Loss Liabilities/Provision Written Back 1.57 10.09
Loss Fees from Training Courses 7.73 6.57
(D) Other Interest Income Interest from Income Tax Refund - 0.84
Miscellaneous Income 15.70 6.14
(i) Interest on Delayed Payments by - 176.76 - - 154.54 -
Total - Other Income 41.90 70.15
Borrowers
34 Finance Costs
(ii) Interest from Staff Advances - 3.65 - - 0.97 -
Finance Costs have been incurred on financial liabilities measured at amortised cost.
(iii) Interest on Mobilisation Advance - 0.27 - - 0.24 - (₹ in Crores)
(iv) Unwinding of Discount of Security - 0.16 - - 0.16 - Particulars Year ended 31.03.2023 Year ended 31.03.2022
Deposits (i) Interest on Borrowings
(v) Interest from SPVs - 0.57 - - 0.37 - - Loans from Govt. of India (NSSF) 822.50 822.50
- Loans from Banks/ Financial Institutions 3,934.76 2,788.79
Sub-total (D) - 181.41 - - 156.28 -
- External Commercial Borrowings 1,881.41 577.12
Total - Interest Income (A to D) - 38,814.65 31.69 - 38,167.34 27.15 - Lease Liability - -
Sub-Total (i) 6,638.67 4,188.41
30 Dividend Income (ii) Interest on Debt Securities
(₹ in Crores) - Domestic Debt Securities 13,312.17 14,759.43
Particulars Year ended 31.03.2023 Year ended 31.03.2022 - Foreign Currency Debt Securities 1,442.43 1,294.73
- Commercial Paper - 14.76
- Dividend from Long-Term Investments 11.89 4.21
Sub-Total (ii) 14,754.60 16,068.92
Total - Dividend Income 11.89 4.21 (iii) Interest on Subordinated Liabilities
- Subordinate Bonds 551.65 523.30
30.1 Details of dividend recognised on Other Investments :
Sub-Total (iii) 551.65 523.30
(₹ in Crores)
(iv) Other Interest Expense
Particulars Year ended 31.03.2023 Year ended 31.03.2022 - Swap Premium 1,784.82 1,269.34
Dividend on FVOCI Equity Investments - Interest on Advance Income Tax - 0.75
- Interest on liability towards employee benefits 3.44 3.48
- Investments held at the end of the year 11.81 3.20
- Miscellaneous interest expense 0.18 1.86
- Investments derecognized during the year 0.08 1.01 Sub-Total (iv) 1,788.44 1,275.43
Total - Finance Costs 23,733.36 22,056.06
Total 11.89 4.21
Less: Finance Costs Capitalised (0.03) (5.10)
31 Fees and Commission Income Total - Finance Costs (Net) 23,733.33 22,050.96
(₹ in Crores)
35 Net translation/ transaction exchange loss/ (gain)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 (₹ in Crores)
Fees based Income 117.80 92.22 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Net translation/ transaction exchange loss/ (gain) 1,114.04 799.05
Prepayment Premium 47.16 465.37
Total 1,114.04 799.05
Fee for Implementation of Govt. Schemes 122.21 15.23 The figures above include amortisation of net translation/ transaction exchange loss/ (gain) on Long Term Foreign Currency Monetary Items recognised in the
financial statements before 1st April 2018 amounting to ₹251.88 crores (Previous year ₹234.81 crores).
Total - Fees and Commission Income 287.17 572.82
35.1 The foreign currency monetary items are translated at FBIL (Financial Benchmark India Private Ltd) reference rates prevailing at the
32 Sale of services end of each reporting period or where the FBIL reference rate is not available for any currency, the closing rate for the same date
(₹ in Crores) quoted on Bloomberg. The respective rates as on the reporting date are as below:
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Exchange Rates USD/INR JPY/INR Euro/INR SGD/INR
Consultancy Engineering Services 287.55 150.96 As at 31 March 2023
st
82.2169 0.6180 89.6076 61.8074
Total 287.55 150.96 As at 31 March 2022
st
75.8071 0.6223 84.6599 55.9438
328 329
36 Fees and commission expense 41 Depreciation and amortization
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Particulars Year ended 31.03.2023 Year ended 31.03.2022
(i) Guarantee Fee 2.92 4.29
- Depreciation on Property, Plant & Equipment 21.60 15.35
(ii) Listing and Trusteeship Fee 0.05 0.84
(iii) Agency Fees 1.76 2.01 - Amortization on Intangible Assets 2.66 2.89
(iv) Credit Rating Expenses 3.55 6.69 Total 24.26 18.24
(v) Other Finance Charges 8.01 2.90
Total (i to iv) 16.29 16.73 42 Corporate Social Responsibility Expenses
(₹ in Crores)
37 Net Gain/ (loss) on Fair Value Changes
(₹ in Crores) Particulars Year ended 31.03.2023 Year ended 31.03.2022
Particulars Year ended 31.03.2023 Year ended 31.03.2022 - Direct Expenditure 198.27 166.88
(A) Net gain/ (loss) on financial instruments at Fair Value
- Overheads 5.64 5.47
through profit or loss
(i) On trading Portfolio - - Total 203.91 172.35
(ii) Others 42.1 Ministry of Corporate Affairs (MCA) has prescribed Companies (Corporate Social Responsibility Policy) Rules, 2014, amended from
- Changes in fair value of Derivatives 69.21 351.36 time to time. These rules require that any unspent CSR amount, other than for any ongoing project, must be transferred to a Fund
- Changes in fair value of Long Term Investments (25.45) (12.78) specified in Schedule VII, within a period of six months of the expiry of the financial year. In case such unspent amount pertains to
- Changes in fair value of Short-term MF investments 1.55 7.99 any ongoing project, it must be transferred to unspent CSR Account by 30th April of the next year. However, if such amount is not
Sub-total (ii) 45.31 346.57 utilised within three financial years, it is required to be transferred to a Fund specified in Schedule VII, within a period of thirty days
Total (A) 45.31 346.57 from the date of completion of the third financial year. The Company also carries the right to set-off any amount spent in excess of the
requirement under the Act within three succeeding financial years against the amount to be spent. Further, companies undertaking
Breakup of Fair Value Changes
impact assessment may book the expenditure towards CSR for that financial year, which shall not exceed two percent of the total CSR
- Realised 336.35 365.03 expenditure or fifty lakh rupees, whichever is higher.
- Unrealised (291.04) (18.46)
42.2 Details of Gross Amount required to be spent by the Group:
Total Net Gain/ (loss) on Fair Value Changes 45.31 346.57
Fair value changes in this schedule are other than those arising on account of accrued interest income/ expense and represents changes in fair value of (a) Gross amount required to be spent by the company during the year is ₹ 203.91 crores (previous year ₹172.35 crores)
derivatives designated as economic hedges not designated under hedge accounting and ineffective hedge
(b) Amount approved by the Board to be spent during the year is ₹203.91 crores (previous year ₹172.35 crores)
38 Impairment on financial instruments
(₹ in Crores) (c) Refer Note no. 57 for related party transactions related to CSR.
Particulars Year ended 31.03.2023 Year ended 31.03.2022 (d) Amount required to be spent on CSR activities as per Section 135 (5) of the Companies Act, 2013:
On financial On financial On financial On financial (₹ in Crores)
instruments measured instruments measured instruments measured instruments measured Particulars Year ended 31.03.2023 Year ended 31.03.2022
at FVOCI at Amortised Cost at FVOCI at Amortised Cost
(i) - Loans * - 105.14 - 3,434.36 (A) Opening Balance - Excess amount spent (0.48) (4.03)
(ii) - Investments - - 28.72 (B) Amount required to be spent during the year 203.91 172.35
(iii) - Others - 37.03 - 6.94
(C) Amount spent during the year* 211.13 168.80
Total (i+ii+iii) - 142.17 - 3,470.02
* includes ₹ -5.03 crores (Previous year ₹ 11.81 crores) towards impairment allowance on Letter of Comfort. (D) Closing Balance - Excess amount spent** (A+B-C) (7.70) (0.48)
* Excludes amount spent on CSR activities from interest earned on temporarily parked funds by REC Foundation (implementing agency) of ₹ 0.98 crores
39 Cost of services rendered
(previous year Nil)
(₹ in Crores)
** eligible to be set-off in the next three succeeding financial years
42.3 Amount spent during the year
Project Expenses 54.06 65.11
(₹ in Crores)
Total 54.06 65.11
40 Employee Benefits Expense In Cash Yet to be Total In Cash Yet to be Total
(₹ in Crores) paid paid
Particulars Year ended 31.03.2023 Year ended 31.03.2022 (i) Construction/ acquisition of any asset - - - - - -
- Salaries and Allowances* 157.43 134.98 (ii) On purpose other than (i) above
- Contribution to Provident and Other Funds 8.57 19.06 Health/Sanitation / Waste Management / Drinking 73.98 - 73.98 54.75 - 54.75
- Rent towards Residential Accomodation for Employees 5.31 3.77 water
- Staff Welfare Expenses 32.79 23.03 Education/ Vocational/ Skill Development 23.12 - 23.12 16.83 - 16.83
Total 204.10 180.84 Environmental Sustainability (Solar Applications/ 23.79 - 23.79 8.25 - 8.25
* includes ₹20.54 crores (previous year Nil) incurred in compliance of order of Ministry of Power regarding regularisation of earlier adopted Pay Scales 1997 in Afforestation/ Energy efficient LED lighting)
respect of below Board Level Executives at par with other CPSEs.
330 331
Particulars Year ended 31.03.2023 Year ended 31.03.2022 44.1 Reconciliation of Effective Tax Rate
In Cash Yet to be Total In Cash Yet to be Total The reconciliation of estimated income tax expense at statutory income tax rate to income tax expense reported in statement of profit
paid paid and loss is as follows:
Sports 30.50 - 30.50 15.00 - 15.00
Contribution to PM CARES Fund 50.13 - 50.13 50.00 - 50.00 Particulars Year ended 31.03.2023 Year ended 31.03.2022
Provision of food/ration to migrant workers due to - - - 0.60 - 0.60 Profit before Tax 13,897.67 12,430.53
COVID- 19 and Providing Cold Chain equipment Statutory income tax rate 25.168% 25.168%
for COVID-19 vaccination Expected income tax expense 3,497.77 3,128.52
Others 3.97 - 3.97 17.90 - 17.90 Tax effect of income tax adjustments:
Impact Assessment 0.34 - 0.34 0.23 - 0.23 Benefit of deduction u/s 36(1)(viii) of Income Tax Act 1961 (673.23) (775.36)
Administrative overheads 5.30 - 5.30 5.24 - 5.24 Non-allowability of CSR expenses & other adjustments 51.00 42.95
Total (i+ii) 211.13 - 211.13 168.80 - 168.80
Other non-deductible tax expenses 5.60 (1.03)
43 Other Expenses Non Taxable Income (3.00) (2.58)
(₹ in Crores) Tax Expense Earlier Years (147.45) (3.96)
Particulars Year ended 31.03.2023 Year ended 31.03.2022 Impact of change in tax rates - (3.98)
- Travelling and Conveyance 18.26 11.72 Tax effect on JV profit accounted for using equity method - 2.97
- Publicity & Promotion Expenses 10.78 2.32 Tax effect of intra group revenue reversals - 7.30
- Repairs and Maintenance 22.93 27.45
Tax expense 2,730.69 2,394.83
- Rent, taxes and energy costs 3.62 7.32
- Insurance Charges 0.15 0.09 45 Earnings per Share
- Communication costs 2.39 2.91
- Printing & stationery 1.26 0.94 Particulars Year ended 31.03.2023 Year ended 31.03.2022
- Director's sitting fees 0.42 0.21 Numerator
Profit for the year from continuing operations as per 11,133.68 10,001.58
- Auditors' fees and expenses 1.62 1.59
Statement of Profit and Loss (₹ in Crores)*
- Legal & Professional Charges 16.35 11.59
Profit for the year from discontinued operations as per - -
- Net Loss on Disposal of Property, Plant & Equipment 6.64 0.97
Statement of Profit and Loss (₹ in Crores)*
- Training And Conference Expense 10.80 7.65
Profit for the year from continuing and discontinued 11,133.68 10,001.58
- Govt. Scheme Monitoring Expenses 8.42 18.49 operations as per Statement of Profit and Loss (₹ in Crores)*
- Impairment allowance on assets classified as held for sale 0.03 9.71 Denominator
- Other Expenditure 26.66 20.60
Weighted average Number of equity shares** 2,633,224,000 2,633,224,000
Total 130.33 123.56
Basic & Diluted Earnings per Share (in ₹ for an equity 42.28 37.98
43.1 Disclosure in respect of Auditors’ fees and expenses share of ₹10 each) (for continuing operations)
(₹ in Crores) Basic & Diluted Earnings per Share (in ₹ for an equity - -
Particulars Year ended 31.03.2023 Year ended 31.03.2022 share of ₹10 each) (for discontinued operations)
Fees paid to statutory auditors : Basic & Diluted Earnings per Share (in ₹ for an equity 42.28 37.98
- for audit fees 0.63 0.62 share of ₹10 each) (for continuing and discontinued
operations)
- for taxation matters * 0.17 0.17
* The profit denotes Proft after Tax less coupon expenses (net of taxes) of ₹33.30 crores (previous year ₹34.12 crores) on Perpetual Debt Instruments entrirely
- for company law matters/ limited review fees 0.35 0.33 equity in nature
- for other services 0.25 0.32 ** During the year, the Company has issued 65,83,06,000 equity shares of ₹10 each as fully paid-up bonus shares in the ratio of 1 (One) equity share for every
- for reimbursement of expenses 0.11 0.03 3 (Three) equity share outstanding on the record date i.e. 18th August 2022. Accordingly, as required by Ind AS-33, Earnings per share, the EPS of current and
Sub-total 1.51 1.47 previous year have been restated.
Non-recoverable tax credit in respect of fees paid to 0.11 0.12 46 Contingent Liabilities and Commitments :
auditors
Total - Auditor’s fees and expenses 1.62 1.59 46.1 Contingent Liabilities not provided for in respect of:
* includes Nil (Previous year Nil) of fees for taxation matters pertaining to earlier years. (₹ in Crores)
44 Tax Expense
(₹ in Crores) (A) Claims against the Company not acknowledged as debts 27.49 30.21
(B) Taxation Demands
(i) - Demands raised by the Income Tax Department 212.70 167.69
- Current tax expense 2,720.50 3,069.23
(ii) - Demands against appeals filed by the Income Tax 0.90 0.90
- Current tax expense/ (benefit) pertaining to earlier years (147.45) (3.96)
Department against the relief allowed to the Company
Sub-total - Current Tax 2,573.05 3,065.27
(iii) - Demands raised in respect of GST 17.89 17.89
- Deferred tax expense/ (credit) 157.64 (670.44)
(C) Guarantees 7.50 -
Total 2,730.69 2,394.83
332 333
(₹ in Crores)
(iv) Rural Electrification component under the RGGVY 12th and 13th plans, subsumed to DDUGJY.
The scheme had estimated outlay of ₹ 75,893 Crore including budgetary support of ₹ 63,027 Crore from Government of India during
(D) Others the entire implementation period. Additional Infra under DDUGJY was sanctioned with a total outlay of ₹ 7,069 Cr including budgetary
(i) - Arbitration Proceedings through Project Management 315.30 - support of ₹ 5302 Cr. The scheme has been successfully completed and closed in its sunset year FY 2021-22 i.e. 31.03.2022.
Consultant (PMC) (counter claim of ₹ 33.23 crores) 48.3 National Electricity Fund (NEF)
(ii) - Letters of Comfort 3,082.47 4,068.95
The National Electricity Fund (NEF), an interest subsidy scheme, has become operational since FY 2012-13. The scheme has been
(iii) - Bank Guarantees 29.79 31.06 introduced by the Government of India to promote capital investment in the distribution sector. The scheme provides interest subsidy
The amount referred to in ‘A’ above are in respect of cases pending in various courts and is dependent upon the verdict of the court. linked with reform measures, on the loans taken by public and private distribution power utilities for various capital works in the
Distribution sector. NEF would provide interest subsidy aggregating up to ₹ 8,466 Crore (including interest subsidy to the borrowers,
The amount referred to in B(i) above are against the various demands raised by Income Tax Department. The company is contesting Service Charges to the Nodal Agency, payments to Independent Evaluators and other incidental expenses) spread over 14 years
these demands and the management believes that its position will likely be upheld in the appellate process. for loan disbursement against projects approved during 2012-13 and 2013-14. REC has been nominated as the Nodal Agency for
operationalization of NEF scheme across the country.
The amount referred to in B(ii) above are against the appeal filed by Income Tax Department in High Court against the relief allowed
to the Company at ITAT level. 48.4 Revamped Distribution Sector Scheme (RDSS)
The amount referred to in B(iii) above is against the GST refund appeal filed by REC. Government of India has approved the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational
efficiencies and financial sustainability by providing result-linked financial assistance to them so as to strengthen supply infrastructure
The amount referred to in C above is against the Bank Guarantee submitted for participation in bidding process of NTPC Green Energy based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The scheme has an outlay of ₹ 3,03,758 Crore
Limited (subsidiary of NTPC Ltd.) over 5 years i.e. FY 2021-22 to FY 2025-26 including an estimated Government Budgetary Support (GBS) of ₹ 97,631 Crore.
The amount referred to in D(i) above represent arbitration matters between the contractor and PMC appointed by the company. The (i) Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
claim is being contested by the PMC and company believes that its position will likely be upheld in the arbitration process.
(ii) Reduction of ACS-ARR gap to zero by 2024-25.
46.2 Commitments not provided for in respect of:
(iii) Improvement in the quality, reliability and affordability of power supply to consumers through a financially sustainable and
(₹ in Crores)
operationally efficient distribution sector.
Components of the scheme are :
- Contracts remaining to be executed on capital account
- Towards Property, Plant & Equipment 124.73 129.13 Part A – Financial support for Prepaid Smart Metering & System Metering and up-gradation of the Distribution Infrastructure.
- Towards Intangible Assets - - Part B – Training & Capacity Building and other Enabling & Supporting Activities.
- Other Commitments
48.5 J&K Prime Minister’s Development Plan (PMDP)
- CSR Commitments 254.10 400.30
Government of Jammu & Kashmir, Power Development Department has appointed RECPDCL as a Project Implementing Agency (PIA)
47 Details of Registration/ License/ authorisation obtained from financial sector regulators: for design, engineering, procurement, supply, erection, testing and commsioning of all the material and services works to be taken-up
for execution of transmission projects under PMDP in J&K state and Ladakh on nomination basis, as per actual cost to be discovered
Particulars Regulator Name Registration Details through competitive biddings.
(i) Corporate Identification Number Ministry of Corporate Affairs L40101DL1969GOI005095 48.6 11 kV Feeder Monitoring Scheme
(ii) Registration Number Reserve Bank of India 14.000011
(iii) Legal Entity Identifier (LEI) Code Global Legal Entity Identifier Foundation (GLEIF) 335800B4YRYWAMIJZ374 Ministry of Power has appointed RECPDCL to implement 11 kV Feeder Monitoring Scheme. The scheme is to develop a Self-sustained
(iv) Registration Number Central Registry of Securitisation Asset Reconstruction L0012 independent web based system for automated 11 kV Rural Feeder Monitoring System through Data Logging of various essential
parameters of all the Outgoing 11kV rural feeders from 66, 33/11 kV sub stations and make the information available online for
and Security Interest of India (CERSAI)
various stakeholders including public portal, on real time basis for power supply monitoring, alerts, meter data analysis, information
48 Implementation of Govt. Schemes dissemination and energy audit.
48.1 Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) 49 Capital management
Government of India launched a scheme “Pradhan Mantri Sahaj Bijli Har Ghar Yojana” - Saubhagya to achieve universal household The Company manages its capital to ensure that it will continue as going concern while maximizing the return to stakeholders. The
electrification in the country during Oct 2017. The scheme envisaged to provide last mile connectivity and electricity connections to capital structure of the Company consists of the equity and the long-term borrowings made by the Company.
all remaining un-electrified households in rural areas and poor households in urban areas. The capital outlay of Saubhagya Scheme
was ₹16,320 Crore including Gross Budgetary Support of ₹12,320 Crore during the entire implementation period. Ministry of Power Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding
designated REC as the Nodal agency for operationalization of Saubhagya Scheme. The scheme has been successfully completed and excessive leverage. The Company manages the capital structure and raises funds through the suitable instruments, in light of the
dynamic business environment and liquidity position within the sector. Further, with regard to capital restructuring, the Company is
closed in its sunset year FY 2021-22 i.e. 31.03.2022.
also guided, inter alia, by guidelines on “Capital Restructuring of Central Public Sector Enterprises” issued by Department of Investment
48.2 Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Public Asset Management (DIPAM), Ministry of Finance, Department of Public Enterprises in respect of issue of bonus shares,
dividend distribution, buy back of equity shares etc. The Company has complied with all externally imposed capital requirements.
Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), the flagship scheme of Government of India covering all aspects of rural power
distribution was launched in Nov 2014. Under the scheme 60% of the project cost (85% for special States) is provided as grant by The debt-equity ratio of the Group is as below:
Government of India and additional grant up to 15% (5% for special States) on achievement of prescribed milestones. DDUGJY (₹ in Crores)
facilitates towards achievement of ‘24x7 Power for All’ in the country through the following project components: Particulars As at 31.03.2023 As at 31.03.2022
(i) Separation of agriculture and non-agriculture feeders facilitating adequate power supply to agriculture & continuous power Net debt 374,522.28 326,645.89
supply to non-agricultural consumers in the rural areas; Net Worth 58,120.51 51,314.10
(ii) Strengthening and augmentation of sub-transmission & distribution infrastructure in rural areas, including metering of Debt-equity ratio 6.44 6.37
distribution transformers/ feeders/ consumers; Net debt represents principal outstanding less cash and cash equivalents available.
(iii) Micro-grid and Off-grid distribution network; Dividend Distribution Policy
334 335
BoD monitors the dividend pay-out to the shareholders of the Company. Dividend distribution policy of the Company focuses on Risk Exposure arising from Measurement Management
various factors including but not limited to the present & future capital requirements, profits earned during the financial year, Capital
Market risk - Currency risk Recognised Financial Assets and Liabilities not Cash flow Derivative contracts
to Risk-weighted Assets Ratio (CRAR), cost of raising funds from alternate sources, cash flow position and applicable taxes if any and
denominated in Indian Rupee (INR) forecasting
net worth of the Company, subject to the applicable circulars/ guidelines issued by RBI, DIPAM etc. as applicable from time to time.
Market risk - interest rate risk Borrowings, Debt Securities and Subordinated Sensitivity analysis Derivative contracts
As per the extant guidelines issued by DIPAM, Govt. of India, Company is required to pay a minimum annual dividend of 30% of PAT or Liabilities at variable interest rates
5% of the net-worth, whichever is higher. Though the Company endeavors to declare the dividend as per these guidelines, the Company Market risk - equity price risk Investments in Quoted Equity Securities Sensitivity analysis Diversification of portfolio, with
may propose lower dividend after analysis of various financial parameters, cash flow position and funds required for future growth. focus on strategic investments
Other Policies In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on
maintaining a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
The Company has also adopted various policies for the management of the Company which inter-alia include Comprehensive Risk
Management Policy, Whistle Blower Policy, Code for Prevention of Insider Trading in REC Equity Shares/Securities, Policy for prevention For managing these risks, the Company has put in place an integrated enterprise-wide risk management mechanism to ensure that
of Fraud, The Code of Business Conduct and Ethics for Board Members and Senior Management, Fair Practices Code, etc. these risks are monitored carefully and managed efficiently. Pursuant to RBI notification DNBR (PD) CC.NO/.099/03.10.001/2018-19, to
augment risk management practices in the Company, the Board has also appointed a Chief Risk Officer (CRO) who is involved in the
50 Capital to Risk-Weighted Assets Ratio process of identification, measurement and mitigation of risks. The risk management approach i.e. Company’s objectives, policies and
processes for measuring and managing each of above risk is set out in the subsequent paragraphs.
The Company is complying with the Capital Adequacy requirements as per the master directions/ circulars/ guidelines prescribed by the
RBI, amended from time to time. Being an NBFC and Infrastructure Finance Company (NBFC-IFC), REC is required to maintain a Capital 51.1 Credit Risk
Adequacy Ratio or Capital to Risk Weighted Assets Ratio (CRAR) of 15% (with a minimum Tier I Capital of 10%), computed by dividing
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company.
company’s Tier-I and Tier-II capital by Risk Weighted Assets.
The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, bank balances (other than cash and
cash equivalents), investments, loan assets, trade receivables and other financial assets measured at amortised cost. The Company
Particulars As at 31-03-2023 As at 31-03-2022 %
continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.
Variance
Numerator* Denominator* % Numerator* Denominator* %
51.1.1 Financial assets that expose the entity to credit risk
(₹ in Crores) (₹ in Crores) (₹ in Crores) (₹ in Crores)
(₹ in Crores)
(i) CRAR 63,240.41 245,300.73 25.78% 57,937.08 245,436.54 23.61% 9.21% Particulars As at 31.03.2023 As at 31.03.2022
(ii) CRAR - Tier I Capital 56,023.45 245,300.73 22.84% 48,052.65 245,436.54 19.58% 16.65% (i) Low credit risk on financial reporting date
(iii) CRAR - Tier II Capital** 7,216.96 245,300.73 2.94% 9,884.43 245,436.54 4.03% -26.95% Cash and cash equivalents 48.70 140.99
Bank balances (other than cash and cash equivalents) 2,346.91 2,518.96
The amount of Perpetual Debt Instrument of the Tier-I capital is 1.00% (previous year 1.16%)
Loans * 412,304.47 335,876.99
* Numerator being Tier-I & Tier-II capital majorily consists of Equity (Refer Note no. 26, 27 and 28) and Denominator being Risk Weighted Assets majorily
Trade Receivables 103.06 79.46
represents the weighted sum of company’s credit exposure(s) such as Loans (Refer Note no. 10) and Investments (Refer Note no. 11), calculated in line with
Investments ** 2,760.98 1,872.66
circular(s) issued by RBI in this regard, from time to time.
Other financial assets 24,422.54 24,415.31
** Variance in CRAR Tier II capital is on account Subordinated Tier-II Bond due for redemption within one year and thus, excluded from the Tier-II capital in
(ii) Moderate credit risk
terms of RBI guidelines
Loans * 10,913.58 36,424.23
Details of Tier II capital and perpetual debt instruments raised during the year are as under: Trade Receivables 9.55 15.09
(₹ in Crores) (iii) High credit risk
Loans * 14,892.08 17,159.89
Investments in Preference Share *** 28.72 28.72
Amount of Subordinated Debt raised as Tier-II capital - - Trade Receivables 0.39 -
Amount raised by issue of Perpetual Debt Instruments - - Other financial assets 95.21 91.17
* Represents the principal outstanding (along with undisbursed amount towards Letters of Comfort) without deduction for expected credit losses
51 Financial Risk Management ** This does not include investments in equity instruments carried at FVOCI/ FVTPL and investments in subsidiary as they are carried at cost in line with the
exemption given under Ind AS 27.
The Company’s board of directors has overall responsibility for the establishment and oversight of the Company risk management *** Represents principal outstanding without deduction for expected credit losses in respect to the investment in Redeemable Preference Shares of Rattan India Power Limited.
framework. The Company has formulated a comprehensive Risk Management Policy, which covers, inter-alia, Credit Risk, Operational
Risk and Market Risk of the organization. The Company’s risk management policies are guided by well-defined systems & processes Cash and Cash Equivalents and Bank Balances
appropriate for various risk categories, independent risk oversight and periodic monitoring. A Board Level Risk Management
Committee (RMC) has also been constituted under the chairmanship of CMD, whose main function is to identify and monitor various Credit risk related to cash and cash equivalents and bank deposits is managed by parking funds in investment grade rated instruments
risks of the organization and to suggest actions for mitigation of the same. and highly rated banks and also diversifying the deposit base by investing in different instruments/ banks across the country.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Loans
financial statements.
Credit risk related to borrowers are mitigated through adequate security arrangements for the loans by way of hypothecation of
Risk Exposure arising from Measurement Management future project loan assets, receivables, inventories or any other assets, Govt. Guarantees, Corporate guarantees etc. and additionally
Credit risk Cash and Cash Equivalents, Bank Balances (other Ageing analysis Bank deposits, liquid funds, Collaterals wherever required. The Company closely monitors the credit-worthiness of the promoters through well-defined entity
than Cash and Cash Equivalents), Loans, Financial diversification of asset base, appraisal guidelines that are configured from systematic institutional and project appraisal process analysis to assess the credit risk
Assets, Investment in G-Sec, State Development credit limits and collateral. and define credit limits of borrower, thereby, limiting the credit risk to pre-calculated amounts. These processes include a detailed
Loans, Debt Securities and Preference Shares appraisal methodology, identification of risks and suitable structuring and credit risk mitigation measures in form of pre-disbursement
Liquidity risk Borrowings, Debt Securities, Subordinated Rolling cash flow Availability of committed credit conditions.
Liabilities and Other Financial Liabilities forecasts lines and borrowing facilities
Trade Receivables
336 337
Credit risk related to Trade Receivables is mitigated by assessing the credit worthiness of debtors and is managed by monitoring the (A) Credit Risk Management
recoverability of such amounts continuously.
The credit risk is managed at different levels including at appraisal, disbursements and post disbursement monitoring. The Company
Other Financial Assets has “Integrated Rating Guidelines” and “Comprehensive Risk Management Policy”. To mitigate credit risk, the company follows
systematic institutional and project appraisal process to assess the credit risk. These processes include a detailed appraisal methodology,
Other financial assets measured at amortized cost includes loans and advances to employees and subsidiary, security deposits and identification of risks and suitable structuring and credit risk mitigation measures. Further, on periodic basis, the loan assets are reviewed
other amounts recoverable, including from Govt. of India. Credit risk related to these other financial assets is managed by monitoring and categorized as High/Moderate/Low based on ECL methodology. The process for Credit Risk Management are as under:
the recoverability of such amounts continuously.
(i) The Company has “Integrated Rating Guidelines” covering credit assessment, risk grading, collateral requirements, reporting,
Investment in G-Sec, State Development loans and Debt Securities monitoring of end utilisation of funds etc. Further, independent Lender legal counsels are appointed to ensure effective documentation
and mitigation of legal risk.
Credit risk related to investment in High Quality Liquid Assets (HQLAs) is managed by investment in Govt. Securities, State Development
Loans and PSU Bonds with sound financial health and also diversifying the investment portfolio in different maturity/sector and (ii) For all existing private sector projects, where the Company is Lead Financial Institution, the Company engages Lender’s Independent
monitoring the financial health on regular basis. Engineers (LIE), Lender’s Financial Advisors (LFA) and Lender’s Insurance Advisors (LIA), which are independent agencies who act on
behalf of various lenders and consortium members. LIE conducts periodic site visits and submits reports on progress status of the
Investment in Securities issued by Borrower entities at the time of Loan Settlement / Resolution project, after discussion with borrower and inspection/ review of relevant documents. LFA submit the statements of fund flow and
utilization of funds in the project periodically. In cases where the Company is not the lead Financial Institution, the tasks related to LIE
REC received various securities issued by borrower entities as a part of the settlement/ resolution plan duly approved by the Company
and LFA services are being coordinated with the lead lender.
or the Consortium of Lenders, as applicable and in case of resolutions under Insolvency & Bankruptcy Code 2016, approved by
Committee of Creditors and National Company Law Tribunal (NCLT) of the competent jurisdiction. Credit risk related to these securities The Company also endeavors to appoint a separate Project Management Agency (PMA) for new projects being financed, which
is managed by monitoring the recoverability of such amounts continuously. subsumes the entire works of LIE /Project Management Consultant (PMC), LFA and LIA for better coordination among the agencies.
PMA is stationed at project site to closely monitor various day to day project execution activities including monitoring of project
51.1.2 Expected Credit Losses (ECL) for financial assets other than loans and trade receivables
progress, review of EPC/non-EPC contracts & invoices, fund utilization and insurance for the project. PMA also verifies the bills of
Company provides for expected credit losses on financial assets other than loans and trade receivables by assessing individual financial original equipment manufacturer/ supplier, composite works contractor and give its recommendation for disbursement. Initial due
instruments for expectation of any credit losses: diligence is also be performed by PMA taking the sanctity of technical and financial parameters including original project cost & COD.
- For cash and cash equivalents and bank balances (other than cash and cash equivalents) - Since the Company deals with Concurrent Auditors/Agencies for Specialized monitoring/Cash Flow monitoring agencies are being appointed by REC/Lenders on
only high-rated banks and financial institutions for banking operations and the liquid funds category in the debt funds with case to case basis for effective monitoring of Trust & Retention Account (TRA) for stressed projects.
consistent track record for short term investment of surplus funds, credit risk in respect of cash and cash equivalents, other
(iii) The Company has an authorisation structure for the approval and renewal of credit facilities. Authorisation limits have been established
bank balances and bank deposits is evaluated as very low.
commensurating with the size of business proposal at CMD/Executive Committee/Loan Committee/ Board of Directors based on the
- For Investment in G-Sec, State Development loans and Debt Securities - Considering that the investments are in debt recommendation of Screening Committee, as appropriate.
securities including Governemnet Securities/ minimum investment grade rated Government Companies in High Quality
(iv) The Company has developed risk grading structure to categorise its exposures according to the degree of risk of default by charging
Liquid Assets (HQLAs), credit risk is considered low.
appropriate interest rates and security package.
- For Investment in Securities issued by Borrower entities at the time of Loan Settlement/ Resolution - Credit risk is
(v) Regular reports on the credit quality of loan portfolios are provided to Risk Management Committee and Board, which may require
evaluated on the basis of recoverability of such securities. Wherever medium or high risk evaluated on such investments,
appropriate corrective action to be taken.
suitable ECL allowance is provided.
(vi) External agencies are appointed from time to time to review the guidelines, policy and existing practices being followed by business
- For other financial assets - Credit risk is evaluated based on Company’s knowledge of the credit worthiness of those parties
units along with providing the specialist skills to promote best practice throughout the Company for management of credit risk.
and loss allowance is measured for 12 month expected credit losses upon initial recognition and provide for lifetime expected
credit losses upon significant increase in credit risk. (vii) Individual and Group Credit Exposures are assessed against designated limits, before facilities are committed to borrowers by the
business unit concerned. Sanction of additional facilities are also subject to the same review process.
Details of expected credit loss for financial assets other than loans and trade receivables is disclosed as follows:
(₹ in Crores) (viii) The Company continuously monitors delays and/ or default of borrowers & other counterparties and their recoverability. On occurrence
Particulars As at 31.03.2023 As at 31.03.2022 of default in the borrower’s account, the Company initiates necessary steps to cure the default which may involve action(s) including,
but not limited to, Special Mention Account (SMA) reporting to RBI, credit information reporting to Central Repository of Information on
Gross ECL Net Gross ECL Net
Large Credits (CRILC), etc., monitoring of the TRA account, conversion of loan into equity as per loan agreement, restructuring of loan
Carrying Carrying Carrying Carrying
account, formulating resolution plan with the borrower, change in ownership, Corporate Insolvency Resolution Process (CIRP), sale of the
Amount amount Amount amount
exposures to other entities/ investors and other recovery mechanisms including invocation of guarantees/ securities to recover the dues.
Cash and cash equivalents 48.70 - 48.70 140.99 - 140.99
(B) Credit risk Measurement
Bank balances (other than cash and 2,346.91 - 2,346.91 2,518.96 - 2,518.96
cash equivalents) The impairment loss allowance on loan assets is provided as per Ind AS 109 in accordance with a board-approved policy, which
Investments* 2,818.42 28.72 2,789.70 1,930.10 28.72 1,901.38 measures the credit risk on the basis of key financial and operational parameters to assess improvement/ deterioration in credit quality.
Management overlays to the model output, if any, are duly documented and approved by the Audit Committee. The evaluation of
Other financial assets ** 24,517.75 95.21 24,422.54 24,506.48 91.17 24,415.31
Expected Credit Loss (ECL) is undertaken by an independent agency, ICRA Analytics Limited (formerly ICRA Online Limited).
* The impairment allowance has been provided in full on ‘Investments in Reedemable Prefernce Shares’ of Rattan India Power Limited considered as credit-impaired.
** The impairment allowance has been provided in full on ‘Other financial assets’ considered as credit-impaired. The Company has an internal system of grading for State Governments, Public Sector Undertakings and State Power Utilities. However,
for State Distribution Companies (DISCOMs), the Company adopts the ratings by the Ministry of Power as and when they are updated.
51.1.3 Expected Credit Loss for loans These ratings are mapped with external rating grades published by various credit rating agencies as part of rating transition matrix.
For risk management reporting purposes, the Company considers and consolidates following elements of credit risk: For private borrowers, the Company uses the external rating as published by various credit rating agencies, or proxy risk score in case
such rating is not available. The proxy risk score model considers following parameters :
Credit default risk: The risk of loss arising from a debtor being unlikely to pay its loan obligations in full or the debtor is more than 90
days past due on any material credit obligation; default risk may impact all credit-sensitive transactions, including loans and securities. Quantitative factors
Debt/ EBITDA (30% weightage)
Concentration risk: The risk associated with any single exposure or group of exposures with the potential to produce large enough
losses to threaten Company’s core operations.
338 339
Return on Capital Employed (15% weightage) (i) The Company considers the date of initial recognition as the base date from which significant increase in credit risk is
Interest Coverage (25% weightage) determined.
Gearing (Debt/Equity) (30% weightage) (ii) EAD represents the amounts, including the principal outstanding, interest accrued and outstanding Letters of Comfort that the
Company expects to be owed at the time of default.
Qualitative Factors
Quarter wise Operational Parameters like PPA, PLF, ACS – ARR Gap, and LAF (I) Credit Risk Exposure
Actual Default dates Credit Risk Exposure in respect of the borrowers with different credit ratings is as under
Status of the Project (₹ in Crores)
(C) Measurement of Expected Credit Loss (ECL) Credit Risk Category As at 31.03.2023 As at 31.03.2022
(Internal/ Mapped Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total
Ind AS 109 outlines a “three stage” model for impairment based on changes in credit quality since initial recognition as summarised below:
Ratings)
- A financial instrument that is not credit impaired on initial recognition and whose credit risk has not increased significantly Performing
since initial recognition is classified as “Stage 1”.
Very Good (AAA | AA | A | 192,836.82 276.33 - 193,113.15 181,968.90 11,661.35 - 193,630.25
- If a significant increase in credit risk since initial recognition is identified, the financial instrument is moved to “Stage 2” but is Government Loan)
not yet deemed to be credit impaired.
Good (BBB | BB | B) 147,389.05 9,128.03 - 156,517.08 96,631.68 24,762.88 - 121,394.57
- If a financial instrument is credit impaired, it is moved to “Stage 3”. Average (C ) 70,282.47 1,345.98 - 71,628.45 54,755.07 - - 54,755.07
- Financial instrument in Stage 1 have their ECL measured at an amount equal to expected credit loss that results from default Fair (D) 1,796.13 157.74 - 1,953.87 2,521.34 - - 2,521.34
events possible within the next 12 months. Instruments in Stage 2 or Stage 3 criteria have their ECL measured on lifetime basis.
Non- Performing (D) - 5.50 14,892.08 14,897.58 - - 17,159.89 17,159.89
(D) Significant Increase in Credit Risk (SICR) Gross Exposure 412,304.47 10,913.58 14,892.08 438,110.13 335,876.99 36,424.23 17,159.89 389,461.12
The Company considers a financial instrument to have experienced a significant increase in credit risk when on any financial instrument Loss allowance (including 3,521.81 238.30 10,519.51 14,279.61 2,790.22 369.61 11,565.73 14,725.57
if the payment is more than 30 days past due on its contractual payments. LoC)
(E) Definition of default and credit-impaired assets Net Exposure 408,782.66 10,675.28 4,372.57 423,830.51 333,086.77 36,054.62 5,594.16 374,735.55
The Company defines a financial instrument as in default, which is fully aligned with the definition of credit-impaired, when the loan (J) Collateral and other credit enhancements
account is more than 90 days past due on its contractual payments or or any such period allowed by the company in line with circular
issued by the Reserve Bank of India.
The Company employs a range of policies and practices to mitigate credit risk. The most common of these is accepting collateral for
(F) Measuring ECL - explanation of inputs, assumptions and estimation techniques funds disbursed. The Company has internal policies on the acceptability of specific classes of collateral or credit risk mitigation. The
principal collateral types for loans and advances are:
Expected credit losses are the product of the probability of default (PD), exposure at default (EAD) and loss given default (LGD),
defined as follows: - Mortgage of Immovable properties
- PD represents the likelihood of the borrower defaulting on its obligation either over next 12 months or over the remaining
- Hypothecation of Moveable property
lifetime of the instrument.
- EAD represents the amounts, including the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC) - Assignment of project contract documents
that the Company expects to be owed at the time of default. - Pledge of instruments through which promoters’ contribution is infused in the project
- LGD represents the Company’s expectation of loss given that a default occurs. LGD is expressed in percentage and it shows the - Pledge of Promoter Shareholding
proportion of the amount that will actually be lost post recoveries in case of a default.
- Corporate and personal Guarantee of Promoters
Determination of Probability of Default (PD)
The Company has analysed the available average annual rating transition matrices published by Credit Rating Agencies to arrive at (K) Loss allowance
annual transition matrix based PD. This annual transition matrix PD was extrapolated to arrive at the lifetime probability of default
of various rating grades by loan tenure / maturity profile i.e. lifetime PD. However, for State Distribution Companies (DISCOMs), the The loss allowance recognized in the period is impacted by a variety of factors, as described below:
Company adopts the ratings by the Ministry of Power as and when they are updated. - Transfers between Stage 1 and Stages 2 or 3 due to financial instruments experiencing significant increases (or decreases) of
Loss Given Default (LGD) computation model credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and
Lifetime ECL
Based on the historical trend, research and industry benchmarking the Company has constructed a LGD model. Factors reviewed in
the LGD model include Project cost per unit, PPA status, FSA status etc. Based on internal research the company has benchmarked - Additional allowances for new financial instruments recognised during the period, as well as releases for financial instruments
these factors for Thermal, Renewable in Private Sector. In case of Private sector borrowers, the realizable value of the assets were de-recognised in the period
arrived using suitable assumptions, including valuation reports carried out by the company, outcome of the resolution process etc., to
arrive at LGD. For State Government and Public sector projects, the Company has factored in the state support and assumed that the - Impact on the measurement of ECL due to changes in PDs, EADs and LGDs in the period, arising from regular refreshing of
State/Central governments would step in to repay debt obligations of the state utilities as witnessed in the past. inputs to models
(G) Alignment of LGD in case of Stage 3 Assets - Financial assets derecognised during the period and write-offs of allowances related to assets that were written off during the
period
Stage-3 assets where REC and PFC (Group Companies) are in Consortium for Stage-III Loan accounts, LGD is taken on the following basis:
The following tables explain the changes in the loan assets (including undisbursed Letters of Comfort) and the corresponding ECL allowance
(a) In cases where either REC or PFC is lead lender, LGD % calculated by the lead lender is adopted.
between the beginning and the end of the reporting period:
(b) In cases where neither REC nor PFC is lead lender, higher of the LGD% worked out by REC and PFC is adopted.
(H) Key assumptions used in measurement of ECL
340 341
st
Opening Balance 335,876.99 2,790.22 36,424.23 369.61 17,159.89 11,565.73 389,461.11 14,725.56
Transfer to 12 months ECL 34,393.77 (353.01) (34,393.77) 353.01 - - - -
Transfer to life time ECL not credit impaired (2,798.11) (11.28) 2,988.10 83.95 (189.99) (72.67) (0.00) -
Transfer to Lifetime ECL credit impaired - - - - - - - -
Additional provision due to changes in PD/ LGD - 715.77 - (673.24) - (370.93) - (328.40)
Financial Assets that have been derecognised (including recoveries in existing assets) (46,813.10) (304.38) (443.01) (13.45) (1,526.74) (51.54) (48,782.85) (369.37)
Write offs - - - - (551.08) (551.08) (551.08) (551.08)
Closing Balance 412,304.47 3,521.81 10,913.58 238.30 14,892.08 10,519.51 438,110.13 14,279.62
(₹ in Crores)
st
Opening Balance 358,891.11 1,282.46 2,888.05 141.43 18,256.93 11,791.31 380,036.09 13,215.20
Transfer to 12 months ECL 2,031.94 134.62 (1,396.55) (139.66) (635.39) 5.03 - (0.01)
Transfer to life time ECL not credit impaired (35,361.06) (40.15) 35,361.06 40.15 - - - -
Transfer to Lifetime ECL credit impaired (1,516.73) (214.87) - - 1,516.73 214.87 - -
Additional provision due to changes in PD/ LGD - 1,235.51 - 293.79 - 1,517.77 - 3,047.07
Financial Assets that have been derecognised (including recoveries in existing assets) (50,652.13) (177.20) (4,305.44) (6.32) (54.37) (39.24) (55,011.94) (222.76)
Write offs - - - - (1,924.01) (1,924.01) (1,924.01) (1,924.01)
Closing Balance 335,876.99 2,790.22 36,424.23 369.61 17,159.89 11,565.73 389,461.11 14,725.56
(L) Details of Stage wise Exposure and Impairment Loss Allowance:

(₹ in Crores)
Stage I Stage II Stage III Total Stage I Stage II Stage III Total
Total Exposure 412,304.47 10,913.58 14,892.08 438,110.13 335,876.99 36,424.23 17,159.89 389,461.12
Impairment Allowance 3,521.81 238.30 10,519.51 14,279.61 2,790.22 369.61 11,565.73 14,725.57
ECL % 0.85% 2.18% 70.64% 3.26% 0.83% 1.01% 67.40% 3.78%
342 343
(M) Concentration of credit risk (P) In accordance with RBI Circular on Implementation of Ind AS by NBFCs dated 13th March, 2020, had the loans otherwise required to be
classified as NPA as per IRACP norms been considered, Gross NPA to Gross Loans ratio would have been 4.77% (previous year 4.45%)
The Company monitors concentration of credit risk (loan assets including undisbursed Letters of Comfort) by type of industry in which and Net NPA to Net Loans would have been 2.41% (previous year 1.51%) as at 31st March 2023.
the borrower operates, further bifurcated into type of borrower, whether state or private.
(₹ in Crores) (Q) Write off policy
Particulars As at 31.03.2023 As at 31.03.2022 The Company writes off financial assets, in whole or in part, as directed by the order of the Judicial Authority or when it has exhausted
Gross Amount ECL Gross Amount ECL all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable
expectation of recovery include ceasure of enforcement activity or where the Company’s recovery method is foreclosing on collateral
Concentration by industry and the value of collateral is such that there is no reasonable expectation of recovery in full.
Generation 169,432.41 11,694.33 155,202.14 12,298.95
(R) Business Model Policy
Renewables 30,503.46 306.33 13,449.27 225.20
Transcos 48,332.23 251.72 64,879.92 774.38 The Company determines its business model at the level that best reflects how it manages groups of financial assets to achieve its
business objective. The Company’s business model is not assessed on an instrument-by-instrument basis, but at a higher level of
Discoms 185,085.13 2,008.12 152,115.74 1,411.67 aggregated portfolios.
Power Infrastructure 1,453.29 5.85 - -
The Company is in the business of lending loans across power sector value chain and such loans are managed to realize the cash flows
Government Loans 3,303.61 13.27 3,814.04 15.36
by collecting contractual payments (including principal and interest) over the tenure of the loan. Further, investments in the nature of
Total 438,110.13 14,279.62 389,461.11 14,725.56 debt investments and other financial assets may also be held by the Company to collect the contractual payments as per the agreed
Concentration by ownership terms.
State 393,244.56 3,276.83 350,584.17 2,684.59 The Company’s business model therefore is “hold to collect” for Loans, certain Financial Investments and Other Financial Assets. Such
Private 44,865.57 11,002.79 38,876.94 12,040.97 financial assets are measured at amortised cost if the contractual terms gives rise to cash flows that are solely payments of principal
Total 438,110.13 14,279.62 389,461.11 14,725.56 and interest on the amount outstanding.
(S) There are no Accounts with overdues beyond 90 days but not treated as credit impaired (previous year Nil)
(N) Sector-wise Credit-impaired Assets - Percentage of Stage-III Assets to Total Advances in that sector
(T) Policy for sales out of amortised cost business
The Company does not resort to the sale of financial assets, including loan assets, in ordinary course of business.
Infrastructure Sector 3.42% 4.45%
However, the company may proceed for realization of amount due in respect of credit-impaired assets, as per the regulatory framework
- Power 3.42% 4.45% in India. As a result, the credit impaired loan may be either restructured/renegotiated or settled as part of IBC proceedings or otherwise
and is assessed for derecognition as per the requirements of Ind AS 109 – Financial Instruments.
(O) Movement of Credit-impaired Assets
(₹ in Crores) (U) There are no reportable cases of loans transferred/ acquired during the FY 2022-23 (previous year Nil) under Master Direction – Reserve
Bank of India (Transfer of Loan Exposures) Directions, 2021 dated 24th September 2021.
(i) Gross Credit-impaired Assets to Gross Advances (%) 3.42% 4.45%
(ii) Net Credit-impaired Assets to Gross Advances (%) 1.01% 1.45%
(iii) Net Credit-impaired Assets to Net Advances (%) 1.04% 1.51%
(iv) Movement of Credit-impaired Assets (Gross)
(b) Additions during the year - 1,516.73
(d) Write-off during the year (551.08) (1924.01)
(v) Movement of Credit-impaired Assets (Net)
(b) Additions during the year 370.93 (215.91)
(d) Write-off during the year - -
(vi) Movement of provisions for Credit-impaired Assets
(b) Provisions made during the year (370.93) 1,732.64
(c) Write-back of excess provisions (124.21) (34.21)
(d) Provision on assets written off during the year (551.08) (1924.01)
344 345
(V) Comparison between provision required as per RBI Income Recognition, Asset Classificaion and Provisioning norms (IRACP)
and Impairment Allowance as per Ind-AS
For the Year ended 31st March 2023 Asset classification as per Outstanding amount Gross Carrying Amount Loss Allowances (Provisions) Net Carrying Amount Provisions required as per Difference between Ind AS 109
Asset Classification as per RBI Norms Ind AS 109 as per Ind AS as required under Ind AS 109 IRACP norms provisions and IRACP norms
(1) (2) (3) (4) (5) (6)=(4)-(5) (7) (8)=(5)-(7)
Performing Assets
Standard Stage 1 403,366.73 404,567.80 3,423.13 401,144.67 2,089.93 1,333.20
Stage 2 10,908.08 11,016.14 232.80 10,783.34 43.63 189.17
Sub Total (1) 414,274.81 415,583.94 3,655.93 411,928.01 2,133.56 1,522.37
Substandard Assets Stage 1 5,839.39 5,866.14 82.81 5,783.33 583.94 (501.13)
Doubtful Assets
Up to 1 year Stage 3 1,512.48 1,512.48 754.15 758.33 350.72 403.43
1 to 3 years Stage 3 594.27 594.27 452.12 142.14 344.21 107.91
More than 3 years Stage 3 12,780.46 12,780.46 9,308.37 3,472.09 9,488.51 (180.14)
Sub-total for doubtful assets 14,887.21 14,887.21 10,514.64 4,372.56 10,183.44 331.20
Stage 3 4.87 4.87 4.87 - 4.87 -
Sub-total for NPA (2) 20,736.97 20,763.72 10,607.82 10,155.89 10,777.75 (169.93)
Total Loan Assets 435,011.78 436,347.66 14,263.75 422,083.90 12,911.31 1,352.44
but not covered under IRACP norms
Sub-Total (3) 3,098.35 3,098.35 15.87 3,082.48 - 15.87
Stage 1 412,304.47 413,532.29 3,521.81 410,010.48 2,673.87 847.94
Stage 2 10,913.58 11,021.64 238.30 10,783.34 49.13 189.17
Total
Stage 3 14,892.08 14,892.08 10,519.51 4,372.56 10,188.31 331.20
Total 438,110.13 439,446.01 14,279.62 425,166.38 12,911.31 1,368.31
For the Year ended 31st March 2022 Asset classification as per Outstanding amount Gross Carrying Amount Loss Allowances (Provisions) Net Carrying Amount Provisions required as per Difference between Ind AS 109
Ind AS 109 as per Ind AS as required under Ind AS 109 IRACP norms provisions and IRACP norms
Asset Classification as per RBI Norms
(1) (2) (3) (4) (5) (6)=(4)-(5) (7) (8)=(5)-(7)
Performing Assets
Standard Stage 1 331,787.14 332,586.36 2,769.32 329,817.04 1,771.72 997.60
Stage 2 36,424.23 36,888.95 369.61 36,519.34 391.52 (21.91)
Sub Total (1) 368,211.37 369,475.31 3,138.93 366,336.38 2,163.24 975.69
Substandard Assets Stage 3 1,512.49 1,512.49 437.16 1,075.33 190.83 246.33
Doubtful Assets
Up to 1 year Stage 3 33.28 33.28 3.33 29.95 7.25 (3.92)
1 to 3 years Stage 3 4,534.01 4,534.01 2,981.99 1,552.01 1,952.89 1,029.10
More than 3 years Stage 3 11,062.89 11,062.89 8,126.03 2,936.86 8,108.58 17.45
Sub-total for doubtful assets 15,630.18 15,630.18 11,111.35 4,518.82 10,068.72 1,042.63
Sub-total for NPA (2) 17,159.89 17,159.89 11,565.73 5,594.15 10,276.77 1,288.96
Total Loan Assets 385,371.26 386,635.20 14,704.66 371,930.53 12,440.01 2,264.65
but not covered under IRACP norms
Sub-Total (3) 4,089.85 4,089.85 20.90 4,068.95 - 20.90
Total Stage 1 335,876.99 336,676.21 2,790.22 333,885.99 1,771.72 1,018.50
Stage 2 36,424.23 36,888.95 369.61 36,519.34 391.52 (21.91)
Stage 3 17,159.89 17,159.89 11,565.73 5,594.15 10,276.77 1,288.96
Total 389,461.11 390,725.05 14,725.56 375,999.48 12,440.01 2,285.55
346 347
(W) There has been no divergence in Asset Classification and Provisioning assessed during last annual inspection conducted by the RBI for As at 31st March 1-7 Days 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total
the FY 2021-22 vis-à-vis as reported by the company (Nil for FY 2020-21) 2023 Days Days & month months months months year & years & years
up to 1 & up & up to 3 & up & up to 1 up to 3 up to 5
51.1.4 Expected Credit Loss for Trade Receivables Months to 2 Months to 6 year years years
Months Months
The entity provides for lifetime credit losses in respect of trade receivables of RECPDCL, one of the subsidiary of REC using simplified approach - Principal - - - 4,110.85 - - 5,755.18 9,454.94 13,565.81 - 32,886.78
under ECL method
- Interest - - - 252.00 72.00 310.00 536.00 1,116.00 580.00 - 2,866.00
(Amount ₹ in Crores)
Particulars Less than 1 year 1 year- 2 year 2 year- 3 year More than 3 year Total Other Borrowings
As at 31 March 2023
st - Principal - - - 3,074.91 3,588.54 2,693.64 12,341.08 7,473.44 27,958.11 3,847.77 60,977.48
Gross carrying value 127.15 21.32 16.31 56.35 221.13 - Interest 17.00 21.00 61.00 106.00 503.00 571.00 1,138.00 3,441.00 2,072.00 658.00 8,588.00
Expected loss rate 20.19% 62.85% 89.94% 99.31% 49.61% Derivative Liabilities :
Expected credit loss (provision) 25.67 13.40 14.67 55.96 109.70
Interest rate - - - - - - 0.60 50.07 71.98 178.16 300.81
Carying amount (net of impairment) 101.48 7.92 1.64 0.39 111.43 derivatives
Currency derivatives - - - - - 60.38 - - 83.52 - 143.90
Gross carrying value 88.93 19.35 14.56 54.43 177.27
Expected loss rate 14.03% 6.82% 99.52% 100.00% 46.66% Reverse cross - - - - - - - 104.61 - 427.63 532.24
currency derivatives
Expected credit loss (provision) 12.48 1.32 14.49 54.43 82.72
Carying amount (net of impairment) 76.45 18.03 0.07 - 94.55
(₹ in Crores)
51.2 Liquidity risk As at 31st March 1-7 Days 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total
2022 Days Days & month months months months year & years & years
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are up to 1 & up & up to 3 & up & up to 1 up to 3 up to 5
settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will Months to 2 Months to 6 year years years
have sufficient liquidity to meet its liabilities when they are due. Months Months
Non-Derivative
The Company manages its liquidity risk through a mix of strategies, including forward-looking resource mobilization based on projected
Financial Liabilities :
disbursements and maturing obligations. The Company has put in place an effective Asset Liability Management System and has also
constituted an Asset Liability Management Committee (“ALCO”) which monitors the liquidity risk with the help of liquidity gap analysis. Rupee Borrowings
Debt Securities
The Company maintains adequate bank balances, short term investments that are readily convertible into cash and adequate borrowing and
overdraft facilities by continuously monitoring the forecast and actual cash flows. - Principal - - - - 5,878.20 2,970.00 14,058.86 53,719.87 39,133.38 67,474.22 183,234.53
- Interest - 379.26 348.22 1,085.23 2,345.40 2,433.79 6,289.22 21,667.98 14,748.20 22,279.94 71,577.24
51.2.1 Maturity Pattern of Future Undiscounted Cash Flows Other Borrowings
The cash flows towards items of financial liabilities (representing future undiscounted cash flows towards principal and interest) is as under: - Principal - - 160.93 1,150.00 1,000.00 1,824.29 5,163.63 17,836.77 15,155.51 18,798.15 61,089.28
- Interest 272.39 - 63.24 202.90 496.89 671.39 1,604.83 4,949.21 3,439.46 3,027.89 14,728.20
(₹ in Crores)
Subordinated
As at 31st March 1-7 Days 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total Liabilities
2023 Days Days & month months months months year & years & years
- Principal - - - - - - - 2,500.00 - 4,150.70 6,650.70
up to 1 & up & up to 3 & up & up to 1 up to 3 up to 5
Months to 2 Months to 6 year years years - Interest - - - 201.50 114.94 - 163.60 759.35 557.08 787.73 2,584.20
Months Months Foreign Currency
Non-Derivative Borrowings
Financial Liabilities : Debt Securities
Rupee Borrowings - Principal - - - - - - - 17,814.67 6,822.64 5,685.54 30,322.85
Debt Securities - Interest - - - 227.28 66.15 285.65 584.79 1,691.31 769.79 171.02 3,795.99
- Principal - 4,300.00 2,985.00 - 1,600.00 2,774.00 11,679.49 55,952.14 39,125.88 79,653.70 198,070.21 Other Borrowings
- Interest - 379.26 361.56 1,110.62 2,715.12 2,347.00 7,051.00 23,022.00 16,309.00 24,176.16 77,471.72 - Principal - - - 2,744.22 2,887.33 2,664.98 4,506.16 8,555.57 21,129.28 3,001.98 45,489.52
Other Borrowings - Interest 8.00 7.18 22.42 67.65 124.53 263.85 447.00 1,388.28 812.26 516.82 3,657.99
- Principal 4,386.43 - - - 3,500.14 666.56 9,451.45 11,820.15 16,672.28 29,488.81 75,985.81 Derivative Liabilities :
- Interest 395.00 - 150.00 392.00 685.00 1,150.00 2,437.00 8,310.00 5,703.00 3,103.00 22,325.00 Interest rate swaps - - - 0.07 - 18.82 - 42.62 - 112.01 173.52
Subordinated Currency swaps - - - - - - - 13.87 - 34.50 48.37

Liabilities Others -
- Principal - - - 2,500.00 - - - - - 4,150.70 6,650.70 Reverse cross - - - - - - - 22.50 - 308.74 331.24
- Interest - - - 202.00 164.00 - 188.00 705.00 705.00 2,646.00 4,610.00 currency derivatives
Seagull Option - - - - - - - - - - -
Foreign Currency
Borrowings Bonds with put & call option have been shown considering the earliest exercise date. The liquidity analysis for derivative financial liabilities is based on fair values of
the derivative contracts and the maturity buckets have been derived on the basis of the remaining tenor of the respective derivative instrument.
Debt Securities
348 349
Significant cashflows required for financial liabilities shall be funded through the undiscounted cash flows (principal and interest) 51.2.3 Financing arrangements
from loans as below:
(₹ in Crores) The Company had access to the following undrawn borrowing facilities at the end of the reporting period:
(₹ in Crores)
Particulars 1.7 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total
Days Days Days & month months months months year & years & years Particulars As at 31.03.2023 As at 31.03.2022
up to 1 & up & up & up to 6 & up to 1 up to 3 up to 5
Expiring within one year
Months to 2 to 3 Months year years years
Months Months - Fixed rate
- Floating rate 13,364.88 8,803.05
As at 31 March 2023
st
Expiring beyond one year

Principal 822.91 - 1,707.32 3,878.16 5,350.60 22,097.85 30,180.20 81,757.04 85,313.12 189,640.84 420,748.04
- Fixed rate - -
Interest 1,137.01 - 926.30 2,106.65 6,071.24 10,044.89 18,662.94 63,776.14 47,148.86 76,238.57 226,112.62 - Floating rate 1,393.58 1,245.90
51.2.4 Additional Disclosures in accordance with RBI Circular on liquidity risk management
Principal 158.66 - 2,077.03 2,142.80 4,800.08 8,892.93 19,691.55 74,970.39 74,346.88 183,586.28 370,666.60
Interest 611.62 - 892.06 1,559.14 6,094.78 9,076.43 17,252.35 59,983.17 44,663.39 71,842.69 211,975.63 The Company has put in place an effective Asset Liability Management System and has also constituted an Asset Liability Management
Committee (“ALCO”) which monitors the liquidity risk with the help of liquidity gap analysis. The Company continuously monitors the
The principal cash flows relating to Stage III assets, net of Expected Credit Loss have been considered in over 5 years bucket irrespective of projected and actual cash flows and accordingly maintains adequate bank balances, overdraft facilities, short term investments that
the maturity date. are readily convertible into cash and adequate borrowing plans.
51.2.2 Maturity Pattern of Significant Financial Assets & Liabilities, as prescribed by RBI (i) Funding Concentration based on significant counterparty (borrowings)
(₹ in Crores)
As at 31st March 2023 1-7 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total Particulars As at 31.03.2023 As at 31.03.2022
Days Days Days & month months months months year & years & years
Number of significant counterparties* 14 15
up to 1 & up & up & up & up to 1 up to 3 up to 5
Months to 2 to 3 to 6 year years years Amount (₹ in Crores) 178,043.46 155,352.32
Months Months Months
% of Total Liabilities 43.70% 43.21%
Loan Assets 822.91 - 1,707.32 3,878.16 6,686.47 30,180.20 81,757.04 85,313.12 189,640.84 422,083.91
22,097.85
(ii) Top 10 borrowings
Investments - - 4.73 4.73 41.86 157.38 259.03 2,702.28 3,170.00
Rupee Borrowings Particulars Amount (` in Crores) % of Total Borrowing
Debt Securities 261.99 4,667.81 3,315.50 831.94 3,488.89 4,136.02 12,997.04 55,891.49 39,037.43 79,583.68 204,211.80 As at 31-03-2023
Other Borrowings 4,620.32 - - - 3,703.42 666.56 9,451.45 11,820.15 16,672.28 29,488.81 76,422.98 1 Term Loan from HDFC Bank 16,350.00 4.36%
Subordinated 2.11 - - 2,668.34 126.46 - - - - 3,976.40 6,773.30 2 Term Loan from State Bank of India 10,900.26 2.91%
Liabilities
3 54EC- Series XVI (2022-23) 10,432.55 2.79%
Foreign Currency
Borrowings
Debt Securities - - - 4,297.43 43.56 96.67 5,742.53 9,438.34 13,072.00 - 32,690.54
6 54EC- Series XV (2021-22) 7,312.80 1.95%
7 54EC- Series XII (2018-19) 6,651.31 1.78%
(₹ in Crores) 8 54EC- Series XIII (2019-20) 6,157.82 1.64%
As at 31st March 2022 1-7 8-14 Over 15 Over 1 Over 2 Over 3 Over 6 Over 1 Over 3 Over 5 Total 9 Tax Free Bonds (2013-14 Series) 5,968.00 1.59%
Days Days Days & month months months months year & years & years 10 Foreign Currency Bond- US $700 Mn 5,755.18 1.54%
up to 1 & up & up to 3 & up to 6 & up to 1 up to 3 up to 5 Total 89,188.41 23.81%
Months to 2 Months Months year years years
Months As at 31-03-2022
Loan Assets 158.66 - 2,077.03 2,142.80 6,181.63 8,892.93 19,691.55 74,970.39 74,346.88 183,468.67 371,930.54
1 Term Loan from State Bank of India 12,729.30 3.90%
2 Term Loan from HDFC Bank 12,000.00 3.67%
Investments - 0.31 - 2.81 2.82 56.17 80.05 180.59 1,867.69 2,190.44
Rupee Borrowings
Debt Securities 19.34 367.83 330.52 993.71 7,777.02 4,636.58 15,210.81 53,696.32 39,118.89 67,396.43 189,547.46
5 Term Loan from India Infrastructure Finance Company Ltd. (IIFCL) 6,800.00 2.08%
6 54EC- Series XII (2018-19) 6,651.77 2.04%
Subordinated - - - 168.38 126.46 - 2.11 2,499.73 - 4,019.79 6,816.47 7 54EC- Series XIII (2019-20) 6,157.72 1.88%
Liabilities
8 54EC- Series XV (2021-22) 6,024.57 1.84%
Foreign Currency -
Borrowings 9 Tax Free Bonds (2013-14 Series) 5,968.00 1.83%
Debt Securities - - - 172.81 40.17 89.14 - 17,755.78 6,805.78 5,163.48 30,027.15
10 54EC- Series XIV (2020-21) 5,312.07 1.63%
Total 80,550.76 24.65%
Other Borrowings 5.62 2.42 4.43 2,747.65 2,910.57 2,680.96 4,506.16 8,499.93 20,837.27 2,995.98 45,191.00
350 351
Consolidated Notes to Accounts Other Short-Term liabilities 20,517.95 5.48% 5.04% 4.41% 13,027.82 3.99% 3.62% 3.17%
(iii) Funding Concentration based on significant instrument/ product
(v) Liquidity Coverage Ratio (LCR)
Name of significant instrument/ product* As at 31.03.2023 As at 31.03.2022 RBI, vide its Liquidity Framework dated 04 Nov, 2019 has stipulated maintaining of Liquidity Coverage Ratio (LCR) by Non-Deposit
taking NBFCs with asset size of more than ₹ 10,000 Crores w.e.f. 01 Dec, 2020. These guidelines of RBI aims to ensure that Company
Amount % of Total Amount % of Total has an adequate stock of unencumbered High-Quality Liquid Assets (HQLA) that can be converted into cash easily and immediately
(₹ in Crores) Liabilities (₹ in Crores) Liabilities to meet its liquidity needs for a 30 calendar day time horizon under a significantly severe liquidity stress scenario.
1 Debt Securities The LCR is represented by:
The Stock of High-Quality Liquid Assets
Institutional Bonds 150,217.70 36.87% 146,029.60 40.61%
Total Net Cash Outflows over the next 30 calendar days
Foreign Currency Bonds 32,886.78 8.07% 30,322.85 8.43%
where,
54EC Capital Gain Tax Exemption Bonds 37,586.91 9.23% 25,437.67 7.07% (i) Total net cash outflows is defined as the total expected cash outflows minus total expected cash inflows for the next 30
calendar days, where the cash flows are assigned a predefined stress percentage, as prescribed by RBI.
Tax Free Bonds 10,261.64 2.52% 11,763.30 3.27%
(ii) High Quality Liquid Assets (HQLA) means liquid assets that can be readily sold or immediately converted into cash at little or
Sub-Total (1) 230,953.03 56.69% 213,553.42 59.40% no loss of value or used as collateral to obtain funds in a range of stress scenarios.
The LCR requirement is binding on NBFCs from December 1, 2020 with the minimum HQLAs to be held being 50% of the LCR,
2 Borrowings (Other than Debt
progressively reaching up to the required level of 100% by December 1, 2024.
Securities)
At Present, HQLA investments are held in INR in the form of Government Securities(G-Sec)/ State Development Loans (SDLs) Securities
Term Loans from Banks 56,298.20 13.82% 42,878.32 11.93% and AAA/AA Corporate Bonds and demand deposits with banks. Management is of the view that Company has sufficient liquidity
cover to meet its likely future short-term requirements.
Foreign Currency Borrowings 45,553.26 11.18% 35,634.60 9.91%
Composition of HQLA:
FCNR (B) Loans 15,424.22 3.79% 9,854.92 2.74% Out of the Stock of HQLA, the Government Securities is the highest proportion of HQLA followed by AAA/AA Corporate bonds and
auto swap balances. The position of HQLA holding as on 31st March 2023 is as follows:
Term Loans from Govt. of India (NSSF) 10,000.00 2.45% 10,000.00 2.78%
HQLA Items % of Overall
Term Loans from Financial Institutions 6,000.00 1.47% 6,800.00 1.89%
Assets without Haircut 74%
Sub-Total (2) 133,275.68 32.72% 105,167.84 29.25% - Cash and Cash Equivalents 3%
- G-Sec and SDLs 71%
3 Subordinated Liabilities 6,650.70 1.63% 6,650.70 1.85%
Assets with 15% Haircut 26%
Total (1+2+3) 370,879.41 91.04% 325,371.96 90.50% - Corporate Bonds 26%
* Significant counterparty/ significant instrument/ product is defined as a single counterparty/ single instrument/ product or group of connected or affiliated Assets with 50% Haircut -
counterparties accounting in aggregate to more than 1% of the company’s total liabilities.
Total 100%
(iv) Stock Ratios:
Amount % of % of % of Amount % of % of % of
(₹ in Public Total Total (₹ in Public Total Total
Crores) Funds Liabilities Assets Crores) Funds Liabilities Assets
Commercial Papers - - - - - - - -
Non-Convertible debentures - - - - - - - -
having maturity of less than one
year
352 353
Liquidity Coverage Ratio Disclosure
(₹ in Crores)
Quarter ended 31-03-2023 Quarter ended 31-12-2022 Quarter ended 30-09-2022 Quarter ended 30-06-2022 Quarter ended 31-03-2022
Total Total
Particulars Total Weighted Total Weighted
Unweighted Unweighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Value Value
Value Value Value (average)* Value (average)* Value (average)* Value (average)* Value (average)* Value (average)*
High Quality Liquid Assets
Total High Quality Liquid Assets (HQLA) 2,110.21 2,016.54 2,159.97 2,078.10 1,597.58 1,563.97 1,642.30 1,608.28 1,719.78 1,686.09
- AA/AAA Corporate Bonds 624.47 530.80 545.79 463.92 224.05 190.44 226.80 192.78 224.56 190.87
- G-SEC Bonds/ State Development Loans (SDLs) 1,429.73 1,429.73 1,399.17 1,399.17 1,373.53 1,373.53 1,374.50 1,374.50 1,296.73 1,296.73
- Demand Deposits 56.01 56.01 215.00 215.00 - - 41.00 41.00 198.49 198.49
Cash Outflows
Other contractual funding obligations 6,369.18 7,324.56 9,136.57 10,507.05 4,735.16 5,445.43 6,189.00 7,117.35 8,279.00 9,520.85
Other contingent funding obligations 295.35 339.65 474.87 546.10 79.40 91.31 216.00 248.40 848.00 975.20
Total Cash Outflows 6,664.53 7,664.21 9,611.43 11,053.15 4,814.56 5,536.74 6,405.00 7,365.75 9,127.00 10,496.05
Cash Inflows
Inflows from fully performing exposures 7,305.09 5,478.82 6,363.05 4,772.29 5,009.00 3,756.75 6,136.00 4,602.00 6,414.00 4,810.50
Other cash inflows 9,892.26 7,419.19 10,859.02 8,144.27 7,975.00 5,981.25 9,296.00 6,972.00 10,223.00 7,667.25
Total Cash Inflows (restricted to 75% of Outflows
17,197.34 5,748.16 17,222.08 8,289.86 12,984.00 4,152.56 15,432.00 5,524.31 16,637.00 7,872.04
on every observation day)
Total Adjusted Value
Total HQLA (A) 2,016.54 2,078.10 1,563.97 1,608.28 1,686.09
Total Net Cash Outflows (B) 1,916.05 2,763.29 1,384.19 1,841.44 2,624.01
Liquidity Coverage Ratio (A / B) 105.24% 75.20% 112.99% 87.34% 64.26%
% Variance (from previous quarter) 39.95% -33.44% 29.37% 35.92%
* For average, daily observation during the respective quarter has been considered.
(Foreign Currency amounts in Millions, INR equivalent in ₹ Crores)

51.3 Market Risk - Currency Risk
Currency As at 31.03.2023 As at 31.03.2022
The Company is exposed to foreign currency risk from various foreign currency borrowings primarily denominated in USD, EURO, JPY
Total Exposure Hedged Unhedged Total Exposure Hedged Unhedged
and SGD. The Company has a risk management policy which aims to manage the foreign currency risk arising from its borrowings through Exposure through Exposure
denominated in a currency other than the functional currency of the Company. The Company uses combination of foreign currency Derivatives Derivatives
options structures, forward contracts and cross currency swap to hedge its exposure to foreign currency risk.
USD $ 10,012.00 9,012.00 1,000.00 9,436.00 7,620.00 1,816.00
An Asset Liability Management Committee (ALCO) is currently functioning under the chairmanship of CMD with Functional Directors, INR Equivalent 82,315.60 74,093.87 8,221.73 71,531.58 57,765.01 13,766.57
executive directors and Chief General Managers from Finance and Operating Divisions as its members. ALCO monitors Foreign
currency risk with exchange rate and interest rate managed through various derivative instruments. ‘The Company enters into various JPY ¥ 58,352.75 58,352.75 - 58,729.87 20,846.05 37,883.82
derivative transactions to cover exchange rate through various instruments like foreign currency forwards contracts, currency options, INR Equivalent 3,606.20 3,606.20 - 3,654.76 1,297.25 2,357.51
principal only swaps and forward rate agreements. These derivative transactions are done for hedging purpose and not for trading or
EURO € 689.58 673.79 15.79 26.32 0.87 25.45
speculative purpose.
INR Equivalent 6,179.19 6,037.68 141.51 222.82 7.37 215.45
In respect of foreign currency debt securities and borrowings, the company has also executed cross currency swaps (principal and/or
interest) to hedge the Foreign Currency Exposure. The outstanding position of Foreign Currency Exposure as at 31st March 2023 is as SGD $ 285.28 285.28 - 72.08 72.08 -
under:
INR Equivalent 1,763.27 1,763.27 - 403.21 403.21 -
Total 93,864.26 85,501.02 8,363.24 75,812.37 59,472.84 16,339.53
354 355
Sensitivity Analysis The Company is exposed to interest rate risk on following Loan Assets which are at semi-fixed rates:
(₹ in Crores)
The table below represents the impact* on P&L including FCMITDA (+ Gain / (Loss) for 5% change in foreign currency exchange rate
against INR on the unhedged exposures: Description As at 31.03.2023 As at 31.03.2022
(₹ in Crores) Rupee Loans 431,992.47 375,805.76
Favorable Adverse Favorable Adverse
The table below represents the impact* on P&L Gain / (Loss) for 50 basis points increase or decrease in interest rate on Company’s
USD/INR 307.62 (307.62) 515.09 (515.09) floating rate assets and liabilities on the unhedged exposures:
JPY/INR - - 88.21 (88.21) (₹ in Crores)
EUR/INR 5.29 (5.29) 8.06 (8.06)
Increase (Decrease) Increase (Decrease)
* Holding all other variables constant
Floating Rate Loan Liabilities (368.77) 368.77 (292.84) 292.84
51.4 Market Risk - Interest Rate Risk Interest Rate Swaps (59.68) 59.68 (44.34) 44.34
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in interest rates. Floating/ semi-fixed Rate Loan Assets 1,616.34 (1,616.34) 1,406.11 (1,406.11)
Interest rates are dynamic and dependent on various internal and external factors including but not limited to RBI policy changes, * Holding all other variables constant
liquidity in the market, movement of external benchmarks such as AAA bond/ G-Sec yields/ LIBOR etc. Some of the borrowings of the
The above sensitivity analysis has been prepared assuming that the amount outstanding at the end of the reporting period remains
Company are exposed to interest rate risk with floating interest rates linked to LIBOR (London Inter Bank Offered Rate), EURIBOR (Euro outstanding for the whole year. A 50 basis point increase or decrease represents management’s assessment of the reasonably possible
Inter Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate), Term SOFR, SORA (Singapore Overnight Rate Average), change in interest rates.
TONAR (Tokyo Overnight Average Rate), T-Bills, Repo Rate etc. The Company manages its interest rate risk through various derivative
contracts like interest rate swap contracts, forward interest rate contracts to minimize the risk of fluctuation in interest rates. The 51.5 Disclosures in respect of Interest Rate Benchmark Reform (IBOR)
Company also uses cross-currency interest rate swaps as a cost-reduction strategy to benefit from the interest differentials in different
currencies. The Company has variable interest rate borrowings with interest rates linked with different benchmarks. Such interest rate benchmarks
for foreign currency borrowings include 3/6 Months’ USD LIBOR (London Inter Bank Offered Rate), 3/6 Months’ EURIBOR (Euro Inter
The table below shows the overall exposure of the Company to the liabilities linked with floating interest rates as at 31st March Bank Offered Rate), Overnight SOFR (Secured Overnight Financing Rate), 3/6 Months’ Term SOFR, SORA (Singapore Overnight Rate
2023 is as under:
Average), TONAR (Tokyo Overnight Average Rate), SOFR (Secured Overnight Financing Rate) etc. The summary of such borrowings as
(Foreign Currency amounts in Millions, INR equivalent in ₹ Crores) on March 31, 2023 as per the contracted interest rate benchmark is as below:
Currency As at 31.03.2023 As at 31.03.2022 Benchmark As at 31-03-2023 As at 31-03-2022

Floating Hedged Unhedged Floating Hedged Unhedged Amount Amount (USD Amount Amount (USD
Interest Rate through Exposure Interest Rate through Exposure (₹ in Crores) Mn Equivalent) (₹ in Crores) Mn Equivalent)
Exposure Derivatives Exposure Derivatives 3M USD LIBOR 1,233.26 150.00 7,201.67 950.00
INR Borrowings 62,798.20 - 62,798.20 50,178.32 - 50,178.32 6M USD LIBOR 29,080.13 3,537.00 27,373.94 3,611.00
USD $ 5,062.00 1,892.00 3,170.00 4,636.00 1,325.00 3,311.00 3M Term SOFR 6,988.44 850.00 - -
INR Equivalent 41,618.19 15,555.43 26,062.76 35,144.17 10,044.44 25,099.73 6M Term SOFR 822.17 100.00 - -
JPY ¥ 58,352.75 10,327.17 48,025.58 58,352.72 10,327.16 48,025.56 O/N SOFR 3,494.22 425.00 568.55 75.00
INR Equivalent 3,606.20 638.22 2,967.98 3,631.29 642.66 2,988.63 3M EURIBOR 3,595.53 437.32 - -
EURO € 604.02 - 604.02 - - - 6M EURIBOR 3,134.74 381.28 - -

O/N TONA 3,606.20 438.62 3,631.29 479.02
INR Equivalent 5,412.51 - 5,412.51 - - -
O/N SORA 445.48 54.18 403.21 53.19
SGD $ 285.28 72.07 213.21 72.08 72.08 -
Total 52,400.17 6,373.40 39,178.67 5,168.21
INR Equivalent 1,763.27 445.47 1,317.80 403.21 403.21 -
Total INR Equivalent 115,198.37 16,639.12 98,559.25 89,356.99 11,090.31 78,266.68 As announced by the UK Financial Conduct Authority (FCA) on 5 March 2021, 3 Month and 6 Month USD LIBOR will cease to be
published after 30th June 2023.
The Company also uses Interest Rate Swaps to manage fair value risk on interest rate borrowings to mitigate the interest rate sensitivity
mismatch. Through such swaps, the fixed rate borrowings amounting to ₹15,950.70 crores as on 31st March 2023 (Previous year (i) Exposure directly affected by the Interest Rate Benchmark Reform (IBOR)
₹11,850.70 crores) have been converted into floating rate borrowings through the use of MIBOR-linked Overnight Indexed Swaps.
While some of the floating rate borrowings of the Company are already under the new benchmarks, some of the borrowings will
The Company’s lending portfolio carries interest at semi-fixed rate i.e. fixed rate of interest with 1/3/10 year reset option with the
also get repaid before the cessation date of the respective interest rates, i.e. 3M USD LIBOR and 6M USD LIBOR. Accrodingly, the total
borrower. The Company reviews its lending rates periodically based on prevailing market conditions, borrowing cost, yield, spread,
competitors’ rates, sanctions and disbursements etc. In order to manage pre-payment risks, the Company charges pre-payment amount of exposure that is directly affected by the Interest Rate Benchmark Reform (IBOR) is ₹ 28,159.29 crores (USD 3.425 Billion) as
premium from borrowers in case of pre-payment of loan. The interest rate risk is managed by the analysis of interest rate sensitivity on 31st March, 2023 (₹ 25,963.93 crores (USD 3.425 Billion) as on 31st March, 2022). Out of this, the nominal amount of the derivative
gap statements and by evaluating the creation of assets and liabilities with a mix of fixed and floating interest rates. exposure linked with such liabilities and accounted for under hedge accounting is ₹ 4,110.85 crores (USD 0.500 Billion) [previous year
₹ 3,790.36 crores (USD 0.500 Billion)]
356 357
(ii) Managing the process to transition to alternative benchmark rates 51.6 Hedge accounting
Pursuant to the Interest Rate Benchmark Reform, LIBOR will be replaced with alternative Risk-Free Rates (RFRs). SOFR (Secured The Company designates certain derivatives as hedging instruments in respect of foreign currency risk and interest rate risk in cash flow
Overnight Financing Rate) will be the replacement for USD LIBOR, while TONA (Tokyo Overnight Average Rate) will replace JPY LIBOR. hedges. For option contracts, the Company designates only the intrinsic value of option contracts as a hedged item by excluding the
ISDA (International Swaps and Derivatives Association), the globally recognized statutory body governing the global derivative deals, time value of the option. The changes in the fair value of the aligned time value of the option are recognised in Other Comprehensive
has come up with the ISDA 2020 IBOR Fallbacks Protocol (commonly referred to as Fallback Protocol) to move all the legacy contracts Income and accumulated in the cost of hedging reserve. The time value of the options at the inception of the hedging relationship is
to new benchmarks. The Company has adhered to the Fallbacks Protocol under which the fallbacks for the various LIBOR benchmarks reclassified to Profit or Loss on a straight-line basis.
will automatically become applicable to the existing derivative trades with all counterparties.
Hedge ineffectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness
With respect to the term loans, REC has been actively engaging with the lenders to initiate the transition exercise at an assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Company applies
early stage. During the year 2022-23, lenders for 10 USD loans amounting to USD 3,275 Million (INR equivalent as on March the following effectiveness testing strategies:
31, 2023 ₹26,926.04 crores) have agreed for transition of the benchmarks from USD LIBOR to Overnight SOFR/ Term SOFR.
(i) For cross currency swaps and interest rate swaps that exactly match the terms of the terms of the hedged item, the economic
During previous year, the company has completed the transition documentation for two JPY loans amounting to JPY 20,846.12 Billion
relationship and hedge effectiveness are based on the qualitative factors using critical terms match method.
(INR equivalent as on 31st March, 2022 ₹ 1,297.25 crores) with the benchmark changed from JPY LIBOR to TONA . Additionally, an
active transition for one SGD loan amounting to SGD 72.08 Million (INR equivalent as on 31st March, 2022 ₹ 403.21 crores) has also (ii) For other interest rate swaps (in cases of late designation), the Company uses dollar offset method using a hypothetical derivatives,
been concluded during the previous year with the benchmark changed from 6M SOR (Singapore Swap Offer Rate) to SORA (Singapore dollar offset method is a quantitative method that consists of comparing the change in fair value or cash flows of the hedging
Overnight Rate Average) instrument with the change in fair value or cash flows of the hedged item attributable to the hedged risk.
(iii) Significant Assumptions for exposures affected by the Interest Rate Benchmark Reform (iii) For option structures, the Company analyses the behaviour of the hedging instrument and hedged item using regression analysis
based dollar offset method.
The Company has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk and notional amount of the
While the benchmarks for the underlying loan are yet to be agreed with the lenders, it has been assumed that there will be no change
hedging instruments are identical to the hedged items.
of such reform. Impact of Hedge Accounting
(a) Effects of hedge accounting on balance sheet

as the basis for
Type of hedge and risks Assets Liabilities recognising hedge
effectiveness
Cash flow hedge
- Seagull Structure USD 8,387 6,970.98 2.25 May 2023 - Nov 2030 1:1 77.03 1,594.19 (1,594.19)
EUR 673.79 403.91 - Dec 2023- Mar 2028 1:1 1.03 210.89 (210.89)
SGD 285.29 32.00 83.52 Mar 2025- Oct- 2027 1:1 0.36 (65.66) 65.66
JPY 58,352.74 572.12 - Aug 2023 - Mar 2027 1:1 0.61 (52.15) 52.15
- Call Spread USD 250 208.14 - March 2024 1:1 57.52 58.14 (58.14)
(ii) Cross Currency Interest Rate swaps USD 800 85.92 - May 2023 - Mar 2025 1:1 3.52% and 72.79 98.24 (98.24)
JPY 10,327.12 - 0.60 Aug 2023 1:1 4.31% and 0.62 (0.33) 0.33
(iii) Principal only swaps USD 375 38.85 - Mar 2025 - Jun 2030 1:1 75.41 (35.15) 35.15
(iv) Interest rate swaps USD 1992 251.77 10.87 May 2023 - Nov 2030 1:1 0.98% 189.27 (189.27)
358 359
(in Millions) price/rate hedging instruments hedged item used
as the basis for
Type of hedge and risks Assets Liabilities recognising hedge
effectiveness
Cash flow hedge

- Seagull Structure USD 7,045 4,744.05 - May 2022 - Jan 2027 1:1 74.31 (399.81) 399.81
USD 20,846.12 102.15 - Aug 2023 - Sep 2025 1:1 0.66 (96.08) 96.08
SGD 72.08 22.08 - Mar 2025 1:1 0.01 (1.77) 1.77
- Call Spread USD 250 76.73 - March 2024 1:1 57.52 (74.08) 74.08
(ii) Cross Currency Interest Rate swaps USD 1,300 22.69 43.78 May 2022 - Mar 2025 1:1 2.99% and 72.94 112.67 (112.67)
JPY 10,327.12 - 1.50 Aug 2023 1:1 0.42% and 0.62 0.82 (0.82)
(iii) Principal only swaps USD 375 - 48.37 Mar 2025 - Jun 2030 1:1 75.41 (49.08) 49.08
(iv) Interest rate swaps USD 425 92.42 - Mar 2024 - Oct 2026 1:1 2.23% 130.27 (130.27)
(b) Effects of Cash Flow hedge accounting on Statement of Profit and Loss (d) Fair Value Hedges
(₹ in Crores)
At 31st March 2023, Company has outstanding interest rate swap agreements of ₹15,950.70 crores (Previous year ₹11,850.70 crores) wherein
Type of hedge Change in value of Hedge Amount Line item affected on
the Company receives a fixed rate of interest and pays interest at a variable rate on the notional amount. Such agreements are being used to
hedging instrument ineffectiveness reclassified from reclassification
hedge the exposure to the changes in fair value of fixed rate borrowings.
recognised in other recognised cash flow hedge
comprehensive income reserve There is an economic relationship between the hedged item and the hedging instrument as the terms of the interest rate swap match the
Year ended 31-03-2023 terms of the fixed rate loan (i.e., notional amount, maturity, payment and reset dates). As such, a hedge ratio of 1:1 for the hedging relationships
has been established as the underlying risk of the interest rate swap is identical to the hedged risk component.
-Currency risk and interest rate risk 1,997.43 - (4,995.73) Gain/ loss on foreign
exchange translation The impact of the hedging instrument on the balance sheet is as follows:
(158.91) Finance cost (₹ in Crores)
Year ended 31.03.2022 Particulars Fair value hedge Notional amount Carrying Line item in balance Changes in fair value
-Currency risk and interest rate risk (377.06) - (995.95) Gain/ loss on foreign amount * sheet where hedging for calculating hedge
exchange translation instrument is disclosed ineffectiveness
126.43 Finance cost As at 31-03-2023 - Interest rate swap 15,950.70 (279.02) Derivative financial (167.10)
instruments
(c) Movement in cash flow hedging reserve and cost of hedging reserve As at 31-03-2022 - Interest rate swap 11,850.70 (111.92) Derivative financial (111.92)
(₹ in Crores) instruments
Particulars Year ended 31.03.2023 Year ended 31.03.2022 * Carrying amount here is exclusive of the interest receivable under such derivative contract as on reporting date.
Effective portion of Cash Flow Hedges
The impact of the hedged item on the balance sheet is as follows:
Opening Balance 194.21 (165.61)
(₹ in Crores)
Add: Changes in intrinsic value of foreign currency option structures 5475.45 1108.37
Particulars Fair value hedge Carrying Accumulated Line item in balance Changes in fair value
Add: Changes in fair value of cross currency swaps 32.25 111.72
amount fair value sheet where hedging for calculating hedge
Add: Changes in fair value of interest rate swaps 189.27 130.27 adjustments instrument is disclosed ineffectiveness
Less: Amounts reclassified to profit or loss (5154.64) (869.52) As at 31-03-2023 - Subordinated Liabilities 4,748.24 (178.16) Subordinated (49.83)
Less: Deferred tax relating to above (net) (136.49) (121.02) Liabilities
Closing Balance 600.05 194.21 - Institutional bonds 7,773.47 (100.86) Debt Securities- (117.27)
Costs of hedging reserve Institutional Bonds
Opening Balance 395.95 (41.45) As at 31-03-2022 - Subordinated Liabilities 4,148.36 (128.33) Subordinated (128.33)
Add: Change in deferred time value of foreign currency option structures 3699.55 1727.42 Liabilities
Less: Amortisation of time value (1943.73) (1142.91) - Institutional bonds 7,881.97 16.41 Debt Securities- 16.41
Less: Deferred tax relating to above (net) (441.90) (147.11) Institutional Bonds
Closing Balance 1709.87 395.95
360 361
The decrease in fair value of the interest rate swap of ₹167.10 crores (Previous year ₹111.92 crores) has been offset with a similar gain on the Hitherto the Company was continued to exempt by Reserve Bank of India (RBI) from its Credit concentration and exposure norms till
respective subordinated liabilities and debt securities. 31st March, 2022. During the year, RBI has further communicated with respect to adherence of the aforesaid norms. In this regard the
Company has taken necessary steps subsequent to the year-end, such as realigning exposures of some of borrowers, issuing perpetual
51.7 Market Risk - Price risk bonds etc. As a result, the exposure w.r.t outstanding loans to its borrowers as on date is within the prescribed norms. Considering the
company’s response and steps taken, RBI has vide letter dated 17th May 2023 advised the company to adhere the norms on sustained
The Company is exposed to price risks arising from investments in quoted equity shares. The Company’s investments are held for strategic
business.
rather than trading purposes.
54.1 Exposure to Real Estate Sector
The Company has no direct or indirect exposure to real estate sector as at 31st March 2023 (As at 31st March 2022 Nil).
The table below represents the impact on OCI Gain / (Loss) for 5% increase or decrease in the respective prices on Company’s equity
investments, outside the group: 54.2 Exposure to Capital Market
Increase (Decrease) Increase (Decrease) (i) Direct investment in equity shares, convertible bonds, convertible debentures 534.10 450.33
Impact on Other Comprehensive Income (OCI) 3.36 (3.36) 2.68 (2.68) and units of equity-oriented mutual funds the corpus of which is not
exclusively invested in corporate debt (includes investment in optionally
Impact on Profit and Loss account (PL) 1.37 (1.37) 2.48 (2.48)
convertible preference shares)
52 Additional Disclosures in respect of derivatives
(ii) Advances against shares/ bonds/ debentures or other securities or on - -
52.1 Forward Rate Agreements/ Interest Rate Swaps clean basis to individuals for investment in shares (including IPOs/ ESOPs),
(₹ in Crores) convertible bonds, convertible debentures, and units of equity-oriented
Particulars As at 31.03.2023 As at 31.03.2022 mutual funds
(i) The notional principal of swap agreements 46,278.27 33,239.41 (iii) Advances for any other purposes where shares or convertible bonds or - -
convertible debentures or units of equity oriented mutual funds are taken as
(ii) Losses which would be incurred if counterparties failed to fulfill their obligations under 718.55 563.77 primary security
the agreements
(iii) Collateral required by the NBFC upon entering into swaps Nil Nil (iv) Advances for any other purposes to the extent secured by the collateral - -
security of shares or convertible bonds or convertible debentures or units
(iv) Concentration of credit risk arising from the swaps Refer Note Below Refer Note Below of equity oriented mutual funds i.e. where the primary security other than
(v) The fair value of the swap book 417.73 390.25 shares/ convertible bonds / convertible debentures / units of equity oriented
REC, being NBFC has entered into swap agreements with Category-I, Authorized Dealers Banks only, in accordance with the RBI guidelines. All the swap agreements mutual funds does not fully cover the advances
entered into with banks are well with in the credit risk limit defined in the Board approved Risk Management Policy.
(v) Secured and unsecured advances to stockbrokers and guarantees issued on - -
52.2 The Company has not entered into any exchange traded Interest Rate (IR) derivatives. behalf of stockbrokers and market makers
52.3 Quantitative Disclosures (vi) Loans sanctioned to corporates against the security of shares / bonds / debentures - -
(₹ in Crores) or other securities or on clean basis for meeting promoter's contribution to the
equity of new companies in anticipation of raising resources
Particulars Currency Derivatives * Interest Rate Derivatives Other Derivatives (Reverse
** cross currency swaps)*** (vii) Bridge loans to companies against expected equity flows/ issues - -
As at As at As at As at As at As at (viii) Underwriting commitments taken up by the NBFCs in respect of primary issue - -
31-03-2023 31-03-2022 31-03-2023 31-03-2022 31-03-2023 31-03-2022 of shares or convertible bonds or convertible debentures or units of equity
(i) Derivatives (Notional Principal Amount) oriented mutual funds
For hedging 85,501.02 59,472.85 46,278.27 33,239.41 4,947.00 4,747.00 (ix) Financing to stockbrokers for margin trading - -
(ii) Marked to Market Positions (x) All exposures to Alternative Investment Funds - -
a) Asset (+) 8,263.06 4,946.40 718.55 563.77 - - Total Exposure to Capital Market 534.10 450.33
b) Liability (-) 146.02 48.37 300.82 173.52 530.11 331.25
54.3 Sectoral Exposure
(iii) Credit Exposure 6,250.55 5,131.08 608.40 490.82 692.05 662.05 (₹ in Crores)
(iv) Unhedged Exposures 8,363.24 16,339.53 N.A. N.A. N.A. N.A.
Sectors As at 31-03-2023 As at 31-03-2022
* Includes Full Hedge, Pricipal only Swap and Call Spread and Seagull Options
** Includes Interest Rate Derivatives as a strategy of cost reduction Principal Interest Total Gross Percentage Principal Interest Total Gross Percentage
*** Includes Reverse Cross Currency swap as a strategy of cost reduction Outstanding Accrued Exposure NPAs of Gross Outstanding Accrued Exposure NPAs of Gross
(including at Default NPAs to (including at Default NPAs to
53 RBI Scale Based Framework (SBR) for NBFCs LoC) (EAD) EAD LoC) (EAD) EAD
Industry
RBI has introduced Scale Based Framework (SBR) for NBFCs effective from 01st October, 2022, categorising NBFCs in four layers based
on their size, activity, and perceived riskiness. The Company, being government owned, is categorised as NBFC – Middle Layer and is Lending to
subject to the guidelines / regulation as mentioned in the aforesaid framework. Infrastructure
Sector
54 Exposure Related Disclosures
- Power 438,110.13 1,497.05 439,607.18 14,892.08 3.39% 389,461.11 1,381.55 390,842.66 17,159.89 4.39%
RBI, vide its letter dated 17th September 2010 had categorized REC as an Infrastructure Finance Company (IFC) in terms of instructions Total Exposure 438,110.13 1,497.05 439,607.18 14,892.08 3.39% 389,461.11 1,381.55 390,842.66 17,159.89 4.39%
contained in RBI Circular CC No.168 dated 12th February 2010. As an IFC, the total permissible exposure for lending and investing is
Exposure for the purpose of above disclosure represents the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC)
30% of Tier-I capital in case of a single borrower and 50% in case of a single group of borrowers, respectively.
362 363
54.4 The company does not have any financing of Parent Company products during the current and previous year. 55.1 Fair values hierarchy
The fair value of financial instruments as referred above has been classified into three categories depending on the inputs used in the
54.5 Concentration of Advances, Exposures and Credit-impaired Assets
valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities [Level
(₹ in Crores) 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements].
Particulars As at 31.03.2023 As at 31.03.2022 The categories used are as follows:
(i) Concentration of Advances
Level 1: Quoted prices (unadjusted) for identical instruments in an active market;
Total Advances to twenty largest borrowers (₹ in Crores) 267,729.20 239,602.97
Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and
Percentage of Advances to twenty largest borrowers to Total Advances of 61.55% 62.17%
the Company Level 3: Inputs which are not based on observable market data (unobservable inputs).
(ii) Concentration of Exposures* The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy at the date of event or change in circumstances
Total Exposure to twenty largest borrowers (₹ in Crores) 268,700.56 240,580.38 that caused the transfer.
Percentage of Exposures to twenty largest borrowers to Total Exposure of the 61.12% 61.55% Financial assets and liabilities measured at fair value - recurring fair value measurements
Company on borrowers (₹ in Crores)
(iii) Concentration of Credit-impaired Assets Particulars As at 31.03.2023 As at 31.03.2022
Total Exposure to the top four Credit-impaired Assets (₹ in Crores) 8,645.97 8,645.97
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
* Exposure for the purpose of above disclosure represents the principal outstanding, interest accrued and outstanding Letters of Comfort (LoC)
Investments at FVOCI
55 Fair value disclosures
Equity investments* 67.23 - 314.48 381.71 53.52 - 214.74 268.26
The fair values of financial instruments measured at amortised cost and fair value by category are as follows:
(₹ in Crores) Investments at FVTPL
Particulars Note No. As at 31.03.2023 As at 31.03.2022 Equity investments 27.31 - - 27.31 49.52 - - 49.52
Financial assets measured at fair value Perpetual Bonds - - 437.26 437.26 - - - -
Derivative financial instruments measured at
Debentures - - 125.08 125.08 - - 132.55 132.55
(i) Fair value through other comprehensive income (FVOCI) 9 8,574.02 5,079.87
Preference Shares** - - - - - - - -
(ii) Fair value through profit and loss (FVTPL) 9 407.59 430.30
Investments* measured at Assets at FVOCI
(i) Fair value through other comprehensive income (FVOCI) 11 381.71 268.26 Derivative financial instruments - 8,574.02 - 8,574.02 - 5,079.87 - 5,079.87
(ii) Fair value through profit and loss (FVTPL) 11 589.65 182.07 Assets at FVTPL
Financial assets measured at amortised cost
Derivative financial instruments - 407.59 - 407.59 - 430.30 - 430.30
Cash and cash equivalents 6 48.70 140.99
Liability at FVOCI
Bank balances (other than cash and cash equivalents) 7 2,346.91 2,518.96
Trade receivables 8 113.00 94.55 Derivative financial instruments - 386.58 - 386.58 - 205.64 - 205.64
Loan Assets 10 422,083.91 371,930.54 Liability at FVTPL
Investments 11 2,198.64 1,740.10 Derivative financial instruments - 590.37 - 590.37 - 347.50 - 347.50
Other financial assets 12 24,422.54 24,415.31 * includes investments in Universal Commodity Exchange Ltd of ₹16.00 crores, fair valued at Nil
Total 461,166.67 406,800.95 ** represents investments in Reedemable Prefernce Shares of Rattan India Power Limited of ₹43.30 crores, fair valued at Nil
Financial liabilities measured at fair value Valuation Techniques for fair value disclosures (Level 1 , Level 2 and Level 3)
Derivative financial instruments measured at (A) Investment in Quoted Equity Investments - Level 1 - Investment in listed equity instruments are measured at their readily available
(i) Fair value through other comprehensive income (FVOCI) 9 386.58 205.64 quoted price in the market.
(ii) Fair value through profit and loss (FVTPL) 9 590.37 347.50 (B) Derivative Financial Instruments - Level 2 - The fair value has been determined on the basis of mark to market value provided by
Financial liabilities measured at amortised cost the banks that have contracted to hedge the underlying risk. Such valuation is calculated using market observable inputs including
Trade payables 18 41.68 36.48 forward exchange rates, interest rates corresponding to the maturity of the contract and implied volatilities.
Debt securities 19 236,902.33 219,574.61 (C) Investment in Perpetual Bond - Level 3 - The Company had made investments in perpetual bonds of Canara Bank and UCO Bank
Borrowings (other than debt securities) 20 137,114.13 106,651.59 which are quoted on NSE/BSE. The Company had checked for active market transactions for these bonds. However, there was no
history of any market activity in these bonds held by the Company, and therefore, quoted price for such bonds was not available. The
Subordinated liabilities 21 6,773.30 6,816.47
Company had checked for any significant changes in credit rating of the investee banks, and if no change is noted, then, coupon rate
Other financial liabilities 22 25,345.11 25,708.73 is considered for computing the fair value using discounted cash flow method.
Total 407,153.50 359,341.02
364 365
(D) Investment in Unquoted Equity of Universal Commodity Exchange Limited (UCX) - Level 3 - Investment in unquoted equity (₹ in Crores)
shares of UCX is classified as Level 3. It has been carried at Nil value by the Company due to the company specific reasons. UCX was Particulars For the Year ended 31 March 2022
st
shut down in 2014, thereby, ceasing to exist as a going concern.

FVTPL FVOCI Total
(E) Investment in Unquoted Equity of Energy Efficiency Services Limited (EESL) - Level 3 - Investment in unquoted equity shares
Investment Investment Investment Investment Investment
of EESL is classified as Level 3. EESL ceases to be a Joint Venture (JV) with effect from September 01, 2021. The fair value has been in Perpetual in in OCDs in Venture in Equity
calculated on the basis of Net Asset Value (NAV) as stated in latest available Financial Statement of the investee company. Bonds Preference Capital Shares
(F) Investment in Unquoted Equity of Jhabua Power Limited (JPL) and Ind Bharat Energy Utkal Limited (IBEUL)- Level 3 - Investment Shares* Fund
in unquoted equity shares of JPL and IBEUL are classified as Level 3. The company has been alloted equity shares of the borrower Opening Balance - 42.99 143.06 - - 186.05
companies pursuant to their respective resolution plans. Their respective fair value has been calculated on the basis of Net Asset Value
Received in Loan Settlement - - - - - -
(NAV) as stated in latest available Financial Statement of these investee companies.
(Refer Note 10.3)
(G) Investment in Unquoted Preference Shares - Level 3 - Investment in unquoted Optionally Convertible Cumulative Redeemable Investment/ (Settlement) - - (41.95) - - (41.95)
Preference Shares (OCCRPS) of Rattan India Power Ltd. (RIPL) are classified as Level 3. The company has been alloted OCCRPS of the
borrower company pursuant to One Time Settlement arrangement executed on 23rd December 2019. The fair value has been taken as Transfer in Level 3 - - - - 218.10 218.10
Nil as future cash flows are uncertain in such instruments. Any change in expectation of future cash flow is adjusted to reflect change Transfer from Level 3 - - - - - -
in fair value of the investment.
Interest income (i) - 6.02 21.13 - - 27.15
(H) Investment in Optionally Convertible Debentures of Essar Power Transmission Limited - Level 3 - Investment in unquoted Fair value changes - (49.01) 10.31 - (3.36) (42.06)
Optionally Convertible Debentures (OCDs) of Essar Power Transmission Limited are classified as Level 3, which have been alloted to the
Company upon implementation of restructuring plan with the borrower. The fair value has been derived by present value technique Closing Balance - - 132.55 - 214.74 347.29
by discounting future cash flows at interest rate applicable to the borrowers. Any change in expectation of future cash flow is adjusted Unrealised gain (loss) at year-end - (32.42) 12.49 - (19.36) (39.29)
to reflect change in fair value of the investment. Refer Note No. 11.4 for Investment in equity shares measured at Fair Value through Other Comprehensive Income (FVOCI) derecognised during the year
(I) Investment in Optionally Convertible Debentures of R.K.M PowerGen Private Limited - Level 3 - Investment in unquoted * represents investments in Reedemable Prefernce Shares’ of Rattan India Power Limited of ₹ 43.30 crores, fair valued at Nil
Optionally Convertible Debentures (OCDs) of R.K.M PowerGen Private Limited are classified as Level 3, which have been alloted to (i) forms part of line item ‘Interest Income’ in the Standalone Statement of Profit and Loss.
the Company upon implementation of restructuring plan with the borrower. The fair value has been taken as Nil as such debentures (ii) Fair value gain/ (loss) on Investments at FVTPL forms part of line item ‘Net Loss/(Gain) on Fair Value changes’ in the Standalone Statement of Profit and Loss.
are unsustainable in nature and future cash flows are uncertain. Any change in expectation of future cash flow is adjusted to reflect (iii) Fair value gain/ (loss) on Investments at FVOCI forms part of line item ‘Changes in Fair Value of FVOCI Equity Instruments’ in the Standalone Statement of
Profit and Loss.
change in fair value of the investment.
55.2 Reconciliation of Financial Instruments measured at Fair Value through Level 3 inputs 55.3 There were no transfers between Level 1 and Level 2 during the year
The following table shows the reconciliation of the opening and closing amounts of Level 3 financial assets and liabilities measured at 55.4 Fair value of instruments measured at amortised cost
fair value: Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows:
Particulars For the Year ended 31st March 2023 Particulars As at 31.03.2023 As at 31.03.2022
FVTPL FVOCI Total Carrying value Fair value Carrying value Fair value
Investment Investment Investment Investment Investment Financial assets
in Perpetual in in OCDs in Venture in Cash and cash equivalents 48.70 48.70 140.99 140.99
Bonds Preference Capital Unquoted
Bank balances (other than cash and cash equivalents) 2,346.91 2,346.91 2,518.96 2,518.96
Shares* Fund Equity
Shares Trade receivables 113.00 113.00 94.55 94.55
Opening Balance - - 132.55 214.74 347.29 Loans 422,083.91 421,931.84 371,930.54 372,175.00
Investments 2,198.64 2,209.90 1,740.10 1,778.29
Received in Loan Settlement - - - 182.36 182.36
(Refer Note 10.3) Other financial assets 24,422.54 24,420.13 24,415.31 24,415.16
Investment/ (Settlement) 428.00 - (26.66) - 401.34 Total 451,213.70 451,070.48 400,840.45 401,122.95
Financial liabilities
Transfer in Level 3 - - - - -
Trade payables 41.68 41.68 36.48 36.48
Transfer from Level 3 - - - - -
Debt securities 236,902.33 230,559.20 219,574.61 221,167.25
Interest income (i) 9.26 3.24 19.19 - 31.69
Borrowings (other than debt securities) 137,114.13 137,862.23 106,651.59 107,306.18
Fair value changes - (3.24) - (82.62) (85.86)
Subordinated liabilities 6,773.30 6,963.79 6,816.47 7,131.25
Closing Balance 437.26 - 125.08 314.48 876.82 Other financial liabilities 25,345.11 25,345.13 25,708.73 25,708.73
Unrealised gain (loss) at year-end 9.26 - 11.46 (98.62) (77.90) Total 406,176.55 400,772.04 358,787.88 361,349.88
366 367
Valuation methodologies of financial instruments not measured at fair value 57 Related Party Disclosures :
Below are the methodologies and assumptions used to determine fair values for the above financial instruments which are not 57.1 List of Related Parties
recorded and measured at fair value in the Company’s financial statements. These fair values were calculated for disclosure purposes
only. The below methodologies and assumptions relate only to the instruments in the above tables: (1) Key Managerial Personnel
Financial assets and liabilities Sh. S.K.G Rahate Chairman & Managing Director (ceased w.e.f May 10, 2022)
For financial assets and financial liabilities that have a short-term maturity (less than twelve months), the carrying amounts, which Sh. Ravinder Singh Dhillon Chairman & Managing Director (from May 10, 2022 to May 16, 2022)
are net of impairment, are a reasonable approximation of their fair value. Such instruments include: cash and cash equivalents, bank Sh. Vivek Kumar Dewangan Chairman & Managing Director (w.e.f May 17, 2022)
balances other than cash and cash equivalents, contract assets and contract liability without a specific maturity. Sh. Ajoy Choudhury Director (Finance)
Loans and advances to customers Sh. V.K. Singh Director (Technical) (w.e.f. July 15, 2022)
Fair values of loan assets are calculated using a portfolio-based approach, grouping loans as far as possible into homogenous groups Smt. Parminder Chopra PFC Nominee Director (Non-executive Director)
based on similar characteristics. The Company then calculates and extrapolates the fair value to the entire portfolio, using discounted Sh. Vishal Kapoor Govt. Nominee Director (ceased w.e.f September 14, 2022)
cash flow models that incorporate interest rate estimates considering all significant characteristics of the loans. Where such information Sh. Piyush Singh Govt. Nominee Director (w.e.f September 14, 2022)
is not available, the Company uses historical experience and other information used in its collective impairment models. Dr. Gambheer Singh Part Time Non-Official Independent Director
Financial assets at amortised cost Dr. Manoj M. Pande Part Time Non-Official Independent Director
The fair values of debt securities measured at amortised cost are estimated using a discounted cash flow model based on contractual Dr. Durgesh Nandini Part Time Non-Official Independent Director
cash flows using actual or estimated yields and discounting by yields incorporating the counterparties’ credit risk. Sh. Narayanan Thirupathy Part Time Non-Official Independent Director (w.e.f. March 6, 2023)
Issued debt Sh. J.S. Amitabh Executive Director & Company Secretary
The fair values of the Company fixed interest-bearing debt securities, borrowings and subordinated liabilities are determined by (2) Ultimate Holding Company
applying discounted cash flows (‘DCF’) method, using discount rate that reflects the issuer’s borrowing rate as at the end of the Power Finance Corporation Ltd.
reporting period. The own non-performance risk as at 31st March 2023 was assessed to be insignificant.
(3) Associate Companies of REC Power Development and Consultancy Limited (formerly REC Power Distribution Company Limited)
Investment in Govt. Securities (G-SEC) and State Development Loan (SDL)
Chandil Transmission Limited
The Company has made investments in G-Sec and SDL in order to maintain sufficient High Quality Liquid Assets as per RBI guidelines. Dumka Transmission Limited
The market price of Government of India securities and state development loan is available as at reporting date and accrued interest
from last coupon date to the reporting date is added to market price. Mandar Transmission Limited
Koderma Transmission Limited
Investment in PSU Bonds
Bidar Transmission Limited
The Company has made investments in PSU Bonds in order to maintain sufficient High Quality Liquid Assets as per RBI guidelines. The Ramgarh II Transmission Limited (incorporated on April 20, 2022)
company has computed fair value using market inputs i.e., Yield of G-Sec bonds for similar remaining maturity or credit rating wise
spread for PSUs for remaining maturity as per industry practice. Beawar Transmission Limited (incorporated on April 27, 2022)
Sikar Khetri Transmission Limited (incorporated on May 06, 2022)
Investments in securities issued by Borrower entities at the time of Loan Settlement/ Resolution
Luhri Power Transmission Limited (incorporated on October 28, 2022)
The fair value has been derived by present value technique by discounting future cash flows at interest rate applicable to the borrowers. Meerut Shamli Power Transmission Limited (incorporated on December 14, 2022)
Any change in expectation of future cash flow is adjusted to reflect change in fair value of the investment.
NERES XVI Power Transmission Limited (incorporated on January 10, 2023)
All other debt securities, borrowings and subordinated liabilities availed by the Company are variable rate facilities which are subject Khavda II-D Transmission Limited (incorporated on April 25, 2022 and under the process of striking off the name of Company from the
to changes in underlying Interest rate indices. Further, the credit spread on these facilities are subject to change with changes in records of Registrar of Companies)
Company creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from
market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate Rajgarh Transmission Limited (transferred on May 30, 2022)
to their respective carrying values. Neemuch Transmission Limited (incorporated on April 12, 2022 and transferred on August 24, 2022)
56 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006: ER NER Transmission Limited (transferred on October 10, 2022)
(₹ in Crores) GADAG II-A Transmission Limited (transferred on November 08, 2022)
Particulars As at 31.03.2023 As at 31.03.2022 WRSR Power Transmission Ltd. (incorporated on September 22, 2022 and transferred on January 18, 2023)
Principal amount remaining unpaid as at the period end - - MP Power Transmission Package-I Limited (transferred on January 21, 2023)
Interest due thereon remaining unpaid as at the period end - - Khavda II-B Transmission Limited (incorporated on April 21, 2022 and transferred on March 21, 2023)
Interest paid by the company in terms of Section 16 of MSME Development Act, 2006 along with - - Khavda II-C Transmission Limited (incorporated on April 22, 2022 and transferred on March 21, 2023)
the amount of the payment made to the supplier beyond the appointed day during the period KPS3 Transmission Limited (incorporated on April 29, 2022 and transferred on March 21, 2023)
Interest due and payable for the period of delay in making payment but without adding the - - Khavda RE Transmission Limited (incorporated on May 02, 2022 and transferred on March 21, 2023)
interest specified under MSME Development Act, 2006. KPS2 Transmission Limited (incorporated on May 04, 2022 and transferred on March 21, 2023)
Interest accrued and remaining unpaid as at the period end - - ERWR Power Transmission Ltd. (incorporated on September 27, 2022 and transferred on March 21, 2023)
Further interest remaining due and payable even in the succeeding years, until such date Khavda II-A Transmission Limited (incorporated on April 19, 2022 and transferred on March 28, 2023)
when the interest due as above are actually paid to the small entereprises. KPS1 Transmission Limited (incorporated on May 06, 2022 and transferred on April 20, 2023)
368 369
(4) Employment Benefit Trusts/ Funds Beawar Dausa Transmission Limited (incorporated on 06.05.2022 )
REC Limited Contributory Provident Fund Trust Fatehgarh III Transmission Limited (incorporated on 18.05.2022 )
Bhadla III Transmission Limited (incorporated on 27.05.2022 )
REC Gratuity Fund
Fatehgarh IV Transmission Limited (incorporated on 08.06.2022 )
REC Employees’ Superannuation Trust
Khandukhal Rampura Transmission Limited (incorporated on 13.05.2022 and transferred on 07.10.2022)
REC Employees’ Benevolent Fund Dharamjaigarh Transmission Limited (incorporated on 18.11.2022 and transferred on 28.03.2023)
REC Retired Employees’ Medical Trust Raipur Pool Dhamtari Transmission Limited (incorporated on 18.11.2022 and transferred on 28.03.2023)
(5) Society registered for undertaking CSR Initiatives Khetri-Narela Transmission Limited (transferred on 11.05.2022)
REC Foundation Mohanlalganj Transmission Limited (transferred on 30.05.2022)
Kishtwar Transmission Limited (transferred on 06.12.2022 )
(6) Other Companies in which Key Managerial Personnel are Directors
Bhadla Sikar Transmission Limited (transferred on 28.03.2023)
Samarpan Hospitals Private Limited
Tatiya Andhra Mega Power Limited (Striked off from the records of Registrar of Companies on 27.09.2022)
Nellore Transmission Limited (Related Party w.e.f July 15, 2022)
Coastal Maharashtra Mega Power Limited (Striked off from the records of Registrar of Companies on 29.09.2022)
Energy Efficiency Services Limited (Related Party ceased w.e.f July 28, 2022)
Chhattisgarh Surguja Power Limited (Striked off from the records of Registrar of Companies on 11.01.2023)
NTPC Limited (Related Party w.e.f September 14, 2022)
Shongtong Karcham-Wangtoo Transmission Limited (Striked off from the records of Registrar of Companies on 13.01.2023)
Jammu and Kashmir State Power Trading Company Limited (Related Party w.e.f January 18, 2023)
Tanda Transmission Company Limited (Striked off from the records of Registrar of Companies on 13.01.2023)
(7) Below mentioned related parties of the Ultimate Holding Company are also considered as related parties of REC:
Bijawar-Vidarbha Transmission Limited (under process of striking off the name from the records of Registrar of Companies)
(a) Key Managerial Personnel of Ultimate Holding Company
(d) Employment Benefit Trusts/ Funds of Ultimate Holding Company
Sh. Ravinder Singh Dhillon Chairman & Managing Director
Smt. Parminder Chopra Director (Finance) PFC Employees Provident Fund
Sh. Rajiv Ranjan Jha Director (Projects) PFC Employees Gratuity Fund
Sh. Manoj Sharma Director (Commercial) (w.e.f August 29, 2022) PFC Defined Contribution Pension Scheme 2007
Sh. Vishal Kapoor Govt. Nominee Director (ceased w.e.f upto June 08, 2022) PFC Superannuation Medical Fund
Sh. Ajay Tewari Govt. Nominee Director (w.e.f. June 09, 2022) (e) Other Companies in which Key Managerial Personnel of Ultimate Holding Company are Directors
Sh Ram Chandra Mishra Part Time Non-Official Independent Director (ceased w.e.f upto July 11, 2022)
PTC India Limited
Adv. Bhaskar Bhattacharya Part Time Non-Official Independent Director
Energy Efficiency Services Limited (Related Party w.e.f September 29, 2022)
Smt. Usha Sanjeev Nair Part Time Non-Official Independent Director
Shri. Prasanna Tantri Part Time Non-Official Independent Director SJVN Limited (Related Party w.e.f December 01, 2022)
Shri Manohar Balwani Company Secretary 57.2 Amount due from/ to the related parties :
(₹ in Crores)
(b) Subsidiary Companies of Ultimate Holding Company
PFC Consulting Limited (PFCCL) Power Finance Corporation Limited (PFC)
PFC Projects Limited (formerly Coastal Karnataka Power Ltd.) subsidiary w.e.f June 30, 2022 Other Financial Assets 3.54 -
(c) Associate Companies of Ultimate Holding Company Associates
Loans to associates 13.39 12.83
Bihar Mega Power Limited
Payables 0.02 0.01
Orissa Integrated Power Limited Employment Benefit Trusts/ Funds
Jharkhand Infrapower Limited Debt Securities 3.70 8.70
Coastal Tamil Nadu Power Limited Other financial liabilities- GOI Serviced Bonds 29.30 29.30
Bihar Infrapower Limited Provisions 2.68 1.05
Other financial assets 15.11 -
Deoghar Infra Limited
Employment Benefit Trusts/ Funds of Ultimate Holding Company
Sakhigopal Integrated Power Company Limited
Ghogarpalli Integrated Power Company Limited
Key Managerial Personnel (KMP)
Odisha Infrapower Limited Debt Securities 0.05 0.16
Deoghar Mega Power Limited Staff Loans & Advances 0.22 0.18
Cheyyur Infra Limited Key Managerial Personnel of Ultimate Holding Company (KMP-PFC)
Ananthpuram Kurnool Transmission Limited Debt Securities 0.17 0.17
Chhatarpur Transmission Limited REC Foundation
Other Non Financial Assets - 1.20
Siot Transmission Limited (incorporated on 27.04.2022 )
Fatehgarh III Beawar Transmission Limited (incorporated on 05.05.2022 )
370 371
(₹ in Crores)
57.5 Terms and conditions of transactions with related parties
The transactions with the related parties are being made at arm’s length basis. The remuneration and the staff loans & advances to Key
Investment in Equity Shares of Energy Efficiency Services Limited 140.43 214.74
Managerial Personnel are in line with the service rules of the Company. The finance costs paid to the related parties are on account of
(EESL) (Carried at Fair Value)
their investments in the debt securities of the Company. The interest rate payable on such debt securities is uniformally applicable to
Other Financial Assets- NTPC Limited 5.24 - all the bondholders. The Company also makes advances to its subsidiary company on account of apportionment of establishment and
Other Financial Assets- SJVN Limited 0.36 - administrative expenses, which are recovered on quarterly basis. Even while the outstanding balances of subsidiary company at the
year-end are unsecured, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.
57.3 Maximum amount of loans/ advances/ investments outstanding during the year: This assessment is made on the basis of short-term realisation of the advances so given.
(₹ in Crores)
57.6 Managerial Remuneration
The details of remuneration to Key Managerial Personnel (KMP) during the year is as below:
Employment Benefit Trusts/ Funds
(₹ in Crores)
Employment Benefit Trusts/ Funds of Ultimate Holding Company Particulars Year ended 31.03.2023 Year ended 31.03.2022
Debt Securities 1.90 4.10 (i) Short-term employee benefits 2.65 2.91
Key Managerial Personnel (KMP) (ii) Post employment benefits 0.19 0.14
Debt Securities 0.16 0.16 Total 2.84 3.05
Staff Loans & Advances 0.39 0.35
As the liabilities for the gratuity and compensated absence are provided on an actuarial basis for the Company as a whole rather than each individual
Key Managerial Personnel of Ultimate Holding Company (KMP-PFC) employee, the amounts pertaining specifically to KMP are not known and hence, not included in the above table. Gratuity and compensated absence, are
Debt Securities 0.17 0.17 included based on actual payment in respective year based in the above table.
57.7 Disclosure in respect of entities under the control of the same government (Government related entities)
Investment in Equity Shares of Energy Efficiency Services Limited (EESL) 175.27 247.23
List of Government related entities
57.4 Transactions with the related parties :
(₹ in Crores) Entities/ Companies in the Group are Central Public Sector Undertaking (CPSU) controlled by Central Government. List of Government
Particulars Year ended 31.03.2023 Year ended 31.03.2022 related entities with which the Group has done transactions, includes but not limited to:
Power Finance Corporation Limited (PFC) Bihar Grid Company Ltd. Power Grid Corporation of India Ltd.
Dividend Paid 1,642.40 1,269.22 Damodar Valley Corporation Broadcast Engineering Consultants India Ltd.
Directors' Sitting Fee - 0.08 Nabinagar Power Generating Co. Pvt. Ltd. India Tourism Development Corporation Ltd.
Recovery of Expenses incurred in Govt. Programmes 3.54 - Neyveli Uttar Pradesh Power Ltd Balmer Lawrie & Co. Ltd.
Finance Cost on Loan Repayable on Demand from PFC - 14.47 NTPC Tamil Nadu Energy Company Ltd. Mahanagar Telphone Nigam Ltd.
Employment Benefit Trusts/ Funds
Patratu Vidut Utpadan Nigam Ltd. National Informatic Centre Services Inc.(NICSI)
Contributions made by the Company 31.25 18.28
THDC India Ltd. MSTC Ltd.
Redemption of the bonds of Company 5.00 -
SJVN Thermal Pvt. Ltd. WAPCOS Ltd.
Finance Costs - Interest Paid 3.28 3.28
Employment Benefit Trusts/ Funds of Ultimate Holding Company NHPC Ltd. Power Foundation of India
Redemption of the bonds of Company 0.10 2.20 Aggregate transactions with such government related entities are as under:
Finance Costs - Interest Paid 0.16 0.38 (₹ in Crores)
Key Managerial Personnel (KMP) Particulars Year ended 31.03.2023 Year ended 31.03.2022
Repayment/ Recovery of Staff Loans & Advances 0.12 0.10
Disbursement of Loans 3,857.30 2,059.64
Repayment/ Recovery of Debt Securities 0.10 -
Interest Income on Staff Loans 0.03 0.04 Interest income recognised 1,709.48 1,829.69
Finance Costs - Interest Paid 0.06 0.07 Other Expenditure- REC's contribution to Power Foundation 8.00 5.00
Employee Benefits Expense - Managerial Remuneration 2.84 3.05
Aggregate balance outstanding from such government related entities are as under:
Directors' Sitting Fee 0.38 0.12
Key Managerial Personnel of Ultimate Holding Company (KMP-PFC) (₹ in Crores)
Finance Cost 0.01 0.01 Particulars As at 31.03.2023 As at 31.03.2022
REC Foundation Loan Assets 20,902.65 17,854.95
Payment towards Corporate Social Responsibility (CSR) Expenses 151.95 112.00 Interest Accrued 12.99 4.52
Refer Note No. 12, 20, 22, 34 and 48 in respect of material transactions with the Central Govt.
Rental Income from NTPC Limited 14.58 -
Recovery of Expenses incurred in Govt. Programmes- NTPC Limited 0.30 - The above transactions with the government related entities cover transactions that are significant individually and collectively. The
Group has also entered into other transactions such as administrative expenses, expenses on Govt. Programmes, etc. with other CPSUs.
Recovery of Expenses incurred in Govt. Programmes- SJVNL 0.30 -
They are insignificant individually & collectively and hence not disclosed. All transactions are carried out on market terms.
Finance Cost on bonds of the company- NHPC Limited - 0.35
Dividend Income on equity shares of NHPC Limited - 4.13
372 373
58 Disclosures in respect of Ind AS 116 ‘Leases’ Net Defined Benefit (Asset)/ Liability
(₹ in Crores)
The Company has leases for office building, warehouses, office equipment and related facilities. With the exception of short-term
leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Particulars As at 31.03.2023 As at 31.03.2022
Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability
Present value of Defined benefit obligation 29.23 30.43
and right of use assets. The Company classifies its right-of-use assets in a consistent manner to its property, plant and equipment.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublease the asset to another Fair Value of Plan Assets 26.55 30.09
party, the right-of-use asset can only be used by the Company. Some leases contain an option to extend the lease for a further term.
The Company is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and other Net Defined Benefit (Asset)/ Liability 2.68 0.34
premises the Company must keep those properties in a good state of repair and return the properties in their original condition at the
end of the lease. Further, the Company is required to pay maintenance fees in accordance with the lease contracts. Movement in net defined benefit (asset)/ liability
(₹ in Crores)
During the year ended 31st March, 2023, the expenses relating to short-term leases are ₹6.96 crores (previous year ₹6.21 crores). The
total cash outflow towards all leases, including Right-of-Use Assets is ₹6.97 crores. (previous year ₹6.23 crores). Particulars Defined Benefit Fair Value of Plan Assets Net Defined Benefit
Obligation (Asset)/ Liability
Set out below are the carrying amounts of lease liabilities (included under borrowings) and the movements during the year:
(₹ in Crores) Year ended Year ended Year ended Year ended Year ended Year ended
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
Opening Balance 0.03 0.05 Opening Balance 30.43 32.44 30.09 30.25 0.34 2.19
Finance Cost accrued during the year - - Included in profit or loss

Payments made during the year (0.01) (0.02) Current service Cost 1.42 1.79 - - 1.42 1.79
Closing Balance 0.02 0.03
Past service cost 2.16 - - - 2.16 -
The table below provides details regarding the contractual maturities of undiscounted lease liabilities: Interest cost / income 2.07 2.17 2.22 2.11 (0.15) 0.06
(₹ in Crores)
Total amount recognised in profit or loss 5.65 3.96 2.22 2.11 3.43 1.85
Upto 1 year 0.02 0.02 Included in OCI
1-5 years - 0.02 Re-measurement loss (gain)

More than 5 years - - - Actuarial loss (gain) arising from changes in 0.10 (0.65) - - 0.10 (0.65)
financial assumptions
59 Disclosures for Employee Benefits as required under Ind AS 19 ‘Employee Benefits’:
- Actuarial loss (gain) arising from Experience (1.09) (0.29) - - (1.09) (0.29)
59.1 Defined Contribution Plans adjustments
A. Provident Fund Return on plan assets excluding interest income - - (0.29) (0.18) 0.29 0.18
The Company pays fixed contribution of Provident Fund at pre-determined rates to a separate registered trust which invests the funds Total amount recognised in OCI (0.99) (0.94) (0.29) (0.18) (0.70) (0.76)
in permitted securities. The trust must declare the rate of interest on contribution to the members based upon the returns earned on
its investments during the year, subject to minimum interest rate prescribed by Employees’ Provident Fund Organisation. Any shortfall Contribution by employers - - 0.39 2.94 (0.39) (2.94)
for payment of interest to members as per specified rate of return has to be compensated by the Company. The Company estimates Benefits paid (5.86) (5.03) (5.86) (5.03) - -
that no liability will arise in this regard in the near future and hence, no further provision is considered necessary.
Closing Balance 29.23 30.43 26.55 30.09 2.68 0.34
In case of RECPDCL, there is no separate trust and the companies makes provident fund contributions to defined contribution plans.
B. Defined Contribution Superannuation Scheme B. Post Retirement Medical Facility (PRMF)
The Company pays fixed contribution towards superannuation scheme at pre-determined rates to NPS Trust which invests the funds The Company has Post Retirement Medical Facility under which the entitled retired employees and their dependent family members
in the permitted securities. The balance with the NPS Trust/ separate trust includes the monthly contributions in the members’ account are covered as per Company Rules. The scheme is funded by the Company and is managed by separate trust. The liability towards the
along with the accumulated returns. When the pension becomes payable to the member, the amount standing to the credit of the same is recognized on the basis of actuarial valuation.
member is appropriated towards the member’s accumulation and annuities, as opted for by the member is allotted.
Net Defined Benefit (Asset)/ Liability
The Group has recognised an expense of ₹ 13.77 crores (previous year ₹ 11.60 Crores) towards defined contribution plans (₹ in Crores)
59.2 Defined Benefit Plans - Post-Employment Benefits Particulars As at 31.03.2023 As at 31.03.2022
A. Gratuity Present value of Defined benefit obligation 164.67 165.51
The Company has a defined gratuity scheme which is managed by a separate trust. Every employee who has rendered continuous Fair Value of Plan Assets 179.78 164.80
service of five years or more is entitled to gratuity at 15 days salary for each completed year of service subject to a maximum of ₹ 0.20 Net Defined Benefit (Asset)/ Liability (15.11) 0.71
crores on superannuation, resignation, termination, disablement or on death, considering the provisions of the Payment of Gratuity
Act, 1972, as amended. The liability of Gratuity is recognized on the basis of actuarial valuation.
374 375
Movement in net defined benefit (asset)/ liability 59.2.1 Risk exposure
(₹ in Crores)
Particulars Defined Benefit Fair Value of Plan Assets Net Defined Benefit Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Obligation (Asset)/ Liability (i) Asset volatility
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 Most of the plan asset investments are in government securities, other fixed income securities with high rating grades and mutual funds.
The fair value of these assets is subject to volatility due to change in interest rates and other market and macro-economic factors.
Opening Balance 165.51 151.69 164.80 144.06 0.71 7.63
Included in profit or loss (ii) Changes in discount rate
Current service Cost 3.64 3.29 - - 3.64 3.29 The present value of defined benefit plan liabilities is calculated using a discount rate which is determined by reference to market
Past service cost - 2.50 - - - 2.50 yields at the end of the reporting period. A decrease in discount rate will increase present values of defined benefit obligations,
Interest cost / income 11.83 10.31 12.15 10.07 (0.32) 0.24 although this will be partially offset by an increase in the value of the plans’ investments.
Total amount recognised in profit or loss 15.47 16.10 12.15 10.07 3.32 6.03 (iii) Longevity risk
Included in OCI The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants
Re-measurement loss (gain) both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
- Actuarial loss (gain) arising from changes 1.45 (4.08) - - 1.45 (4.08)
(iv) Salary risk
in financial assumptions
- Actuarial loss (gain) arising from changes - 3.75 - - - 3.75 The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an
in demographic assumptions increase in the salary of the plan participants will increase the plan’s liability.
- Actuarial loss (gain) arising from Experience (5.71) 10.58 - - (5.70) 10.59 (v) Employee Turnover/ Withdrawl risk
adjustments
Return on plan assets excluding interest income - - 2.04 2.90 (2.04) (2.90) The present value of the defined benefit plan liability is calculated by reference to the expected withdrawl rate in the future. As such,
if the actual withdrawal rate in the future turns out to be more or less than expected then it may result in increase in the plan’s liability.
Total amount recognised in OCI (4.26) 10.25 2.04 2.90 (6.29) 7.36
Contribution by participants 0.11 0.15 0.10 0.06 0.01 0.09 59.2.2 Plan Assets
Contribution by employers - - 0.69 7.71 (0.70) (7.72) The fair value of plan assets at the end of reporting period for each category, are as follows:
Benefits paid (12.16) (12.68) - - (12.16) (12.68) (₹ in Crores)
Closing Balance 164.67 165.51 179.78 164.80 (15.11) 0.71 Particulars Gratuity PRMF
C. Economic Rehabilitation Scheme (ERS) As at 31.03.2023 As at 31.03.2022 As at 31.03.2023 As at 31.03.2022
Cash & Cash Equivalents 0.06 0.38 0.20 0.11
The Company has an Economic Rehabilitation Scheme (ERS) to support the family financially in case of permanent disability/ death of
an employee during the service tenure. This scheme is unfunded and the liability is determined based on actuarial valuation. Quoted Plan Assets
Equity Instruments 0.99 - - -
Net Defined Benefit (Asset)/ Liability for ERS State Government Debt Securities 10.28 - 40.80 22.58
(₹ in Crores) Corporate Bonds/ Debentures 9.35 - 138.78 142.11
Particulars As at 31.03.2023 As at 31.03.2022 Sub-total - Quoted Plan Assets 20.62 - 179.58 164.69
Unquoted Plan Assets
Present value of Defined benefit obligation
Others - Insurer managed funds & T-bills 5.87 29.71 - -
- ERS 4.17 4.15 Sub-total - Unquoted Plan Assets 5.87 29.71 - -
Total 26.55 30.09 179.78 164.80
Movement in net defined benefit (asset)/ liability for ERS
(₹ in Crores) Actual return on plan assets is ₹ 16.12 crores (previous year ₹ 14.90 crores).
Particulars Year ended 31.03.2023 Year ended 31.03.2022 59.2.3 Significant Actuarial Assumptions
Opening Balance 4.15 4.13
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at
Included in profit or loss March 31, 2023 by M/s Transvalue Consultants. The present value of the defined benefit obligation, and the related current service cost
Current service Cost 0.25 0.20 and past service cost, were measured using the projected unit credit method (PUCM). The principal assumptions used for actuarial
valuations are:-
Interest cost / income 0.28 0.26
(₹ in Crores)
Total amount recognised in profit or loss 0.53 0.46
Particulars Gratuity PRMF ERS
Included in OCI
Re-measurement loss (gain) 31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
- Actuarial loss (gain) arising from changes in financial 0.07 (0.06) Method Used PUCM PUCM PUCM PUCM PUCM PUCM
assumptions
Discount Rate & Expected Return on Plan 7.31% 7.37% 7.31% 7.37% 7.31% 7.37%
-Actuarial loss (gain) arising from Experience adjustments 0.33 0.89
Assets, if funded
Total amount recognised in OCI 0.40 0.83 Future Salary Increase / medical inflation 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
Benefits paid (0.91) (1.27) Expected average remaining working lives 17.72 17.35 17.72 17.35 17.72 17.35
Closing Balance 4.17 4.15 of employees (years)
376 377
The principal assumptions are the discount rate, salary growth rate and expected average remaining working lives of employees. The the basis of actuarial valuation basis. Total expenses amounting to ₹ 5.04 crores (Previous year ₹ 9.37 crores) have been made towards
discount rate is generally based on the market yields available on govt. bonds at the reporting date with a term that matches the these employee benefits and debited to the Statement of Profit and Loss on the basis of actuarial valuation.
liabilities and the salary growth rate takes account of inflation, seniority, promotions and other relevant factors as long term basis. The
59.3.2 Other employee benefits
above information is certified by the Actuary.
Expenses towards long service award and settlement allowance amounting to ₹ 0.47 crores (previous year Nil) have been debited to
59.2.4 Sensitivity Analysis the Statement of Profit and Loss on the basis of actuarial valuation.
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, In case of RECPDCL, the Loyalty incentive to the employees is payable after completion of three years of continuous service only,
would have affected the defined benefit obligation by the amounts shown below: except in case of separation due to death. The payment of dues to outgoing employee is released at the time of separation. Expenses
(₹ in Crores) amounting to Nil (Previous year Nil) have been debited to the Statement of Profit and Loss on the basis of actuarial valuation.
Particulars As at 31.03.2023 As at 31.03.2022 59.4 Employee benefits including Gratuity, PRMF, Terminal Benefits, leave encashment and other employee benefits in respect of Company’s
Increase Decrease Increase Decrease employees working in its wholly-owned subsidiary on deputation / secondment basis, are being allocated based on a fixed percentage
Discount rate (0.50% movement) of employee cost.
- Gratuity (0.84) 0.91 (0.80) 0.85 60 Status of Documentation Subsequent to Unbundling of SEBs
- PRMS (12.10) 12.60 (12.16) 12.66
Some of the erstwhile State Electricity Boards (SEBs) against whom loans were outstanding or on whose behalf guarantees were given,
- ERS (0.15) 0.17 (0.15) 0.17 were restructured by the respective State Governments and new entities were formed in the past. Consequently, the liabilities of the
Salary Escalation Rate (0.50% movement) erstwhile SEBs stand transferred to new entities.
- Gratuity 0.21 (0.18) 0.19 (0.21)
Status of Documentation Subsequent to Reorganisation of the State of Jammu & Kashmir
- PRMS - - - -
- ERS 0.15 (0.14) 0.15 (0.14) After the bifurcation of the State of Jammu & Kashmir into two Union Territories (UTs) – Jammu & Kashmir UT and Ladakh UT, the existing
entities pertaining to the erstwhile state of J&K have been restructured vide unbundling order dated 23rd October 2019. The addendums
Medical inflation Rate (0.50% movement)
to the agreements with new restructured departments are yet to be executed. Pending the execution of such documentation, the existing
- PRMS 11.62 (10.52) 11.68 (10.57) loans for Generation, T&D and Govt. schemes are being serviced / repaid in line with the existing loan agreements.
Medical Cost (10% movement)
Status of Documentation Subsequent to Reorganisation of the State of Andhra Pradesh
- PRMS 16.89 (16.19) 16.98 (16.28)
Subsequent to the reorganisation of erstwhile State of Andhra Pradesh, the state of Telangana has been formed on 2 June 2014.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
However, the assets and liabilities are yet to be transferred to the respective power utilities through a formal Gazette Notification.
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Status of Documentation is as under:
The Company actively monitors how the duration and expected yield of investments are matching the expected cash outflows arising from
employee benefit obligations. Investments are well diversified, such that the failure of any single investment would not have a material (i) Where ever the loans have been sanctioned to erstwhile APCPDCL, APNPDCL and APGENCO prior to bifurcation and documentation
impact on overall level of assets. There has been no change in the process used by the Company to manage its risks from prior periods. has not been done, these schemes have been re-sanctioned in the name of newly formed utilities and documentation formalities
completed and accordingly the charge has been registered with the Ministry of Corporate Affairs (MCA).
59.2.5 Expected maturity analysis of the defined benefit plans in future years
(₹ in Crores) (ii) Where ever the loans sanctioned in the name of erstwhile APCPDCL, APNPDCL prior to bifurcation and documentation formalities
completed and drawls have been made, in these schemes an undertaking has been obtained from the name changed / newly formed
utility and disbursements have been made to the newly formed utility by changing the name of the borrower in the name of new /
As at As at As at As at As at As at name changed utility.
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022
(iii) Where ever the Loan is sanctioned in the name of erstwhile APCPDCL, APNPDCL prior to bifurcation and documentation formalities
Less than 1 year 6.43 4.71 13.98 14.02 1.12 1.11
completed with Government Guarantee and drawls have been made, further documentation for these schemes shall be done on
From 1 to 5 years 16.12 17.61 78.64 83.46 2.33 3.60 Gazette Notification.
Beyond 5 years 35.29 32.92 306.56 327.63 3.11 4.74 (iv) Once the final transfer scheme is notified through Gazette Notification by Govt, duly indicating the transfer of assets and liabilities
Total 57.84 55.24 399.18 425.11 6.56 9.45 among the power utilities, action for execution of documentation formalities will be taken up in respect of all the outstanding loans
with the new / name changed utilities. Till that time, the demand for payment of interest / principal is being segregated by the Utilities
59.2.6 Expected contribution for the next year and the respective portions are being paid by Utilities in Telangana and Andhra Pradesh.
(₹ in Crores)
61 Modifications in the Significant Accounting Policies
Year ended Year ended Year ended Year ended Year ended Year ended The policy on lease accounting has been added. Further, certain accounting policies have also been reworded to bring in more clarity
31.03.2023 31.03.2022 31.03.2023 31.03.2022 31.03.2023 31.03.2022 and align with Company’s practice. There is no financial impact of such modifications carried out in the accounting policies.
Expected contribution 3.77 1.76 - 4.35 - - 62 Provisions, Contingencies and Impairment loss allowances debited to Consolidated Statement of Profit and Loss
(₹ in Crores)
The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 11.18 years (as at
31.03.2022 - 12.20 years). Particulars Year ended 31.03.2023 Year ended 31.03.2022
(i) Impairment Loss Allowance for loans* 105.14 3,434.36
59.3 Other Long-term Employee Benefits
(ii) Impairment Loss Allowance for Investments - 28.72
59.3.1 Earned Leave and Half Pay Leave
(iii) Impairment Loss Allowance for Other Receivables 37.03 6.94
REC provides for earned leave benefit and half-pay leave benefit to the credit of the employees, which accrues on half-yearly basis at
15 days and 10 days respectively. A maximum of 300 days of earned leave can be accumulated at any point of time during the service, (iv) Provision made for Income Tax 2,730.69 2,394.83
while there is no limit for accumulation of half pay leave. In case of RECPDCL, The Employees are entitled for Leave encashment after * includes ₹ -5.03 crores (Previous year ₹ 11.81 crores) towards impairment allowance on Letter of Comfort.
completion of one year of service only and amount is paid in full, at the time of separation. The liability for the same is recognized on
378 379
63 The Company’s operation comprise of only one business segment - lending to power, logistic and infrastructure sector. Hence, there 65 Disclosures in respect of Entities Consolidated as required under Schedule III to the Companies Act, 2013
is no other reportable segement in terms of Indian Accounting Standard (Ind-AS) 108 “Operating Segments”. Based on “management
65.1 Share in Net Assets i.e. Total Assets minus Total Liabilities
approach” as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company’s performance based on analysis of
(₹ in Crores)
various factors of one business segment.
Name of the Entity As at March 31, 2023 As at March 31, 2022
63.1 Information about Revenue from major products and services
(₹ in Crores) As % of Amount As % of Amount
Consolidated Consolidated
Net Assets Net Assets
(A) Income from Loan Assets 38,701.63 38,522.97
Parent
(B) Fee for Implementation of Govt. Schemes 122.21 15.23 REC Limited 99.24% 57,679.67 99.36% 50,985.60
(C) Income from Treasury Operations 306.57 235.36 Subsidiaries - Indian
(D) Revenue from sale of services 287.55 150.96 REC Power Development and Consultancy Limited (formerly 0.76% 440.93 0.64% 328.59
Total 39,417.96 38,924.52 REC Power Distribution Company Limited)
63.2 The Group does not have any reportable geographical segment as the primary operations of the Group are carried out within the country. Associates - Indian
Chandil Transmission Limited - 0.05 - 0.05
63.3 No single borrower has contributed 10% or more to the Company’s revenue during the financial year 2022-23 and 2021-22
Dumka Transmission Limited - 0.05 - 0.05
64 Subsidiaries, joint venture and associates considered for consolidation
Mandar Transmission Limited - 0.05 - 0.05
A. Wholly owned subsidiaries of the Company:
Koderma Transmission Limited - 0.05 - 0.05
(₹ in Crores)
Bidar Transmission Limited - 0.05 - 0.05
Name of entity Place of business/ Ownership interest held by the
country of incorporation Group Sikar Khetri Transmission Limited - 0.05 - -
As at 31.03.23 As at 31.03.22 KPS1 Transmission Limited - 0.05 - -
REC Power Development and Consultancy Limited (formerly India 100% 100% Ramgarh II Transmission Limited - 0.05 - -
REC Power Distribution Company Limited) Beawar Transmission Limited - 0.05 - -
Khavda II-D Transmission Limited - 0.05 - -
B. Joint venture- Nil
LUHRI Power Transmission Limited - 0.05 - -
C. Associates
Meerut Shamli Power Transmission Limited - 0.05 - -
Name of entity Place of business/ Ownership interest NERES XVI Power Transmission Limited - 0.05 - -
country of incorporation held by the Group
Rajgarh Transmission Limited (Earlier Rajgarh Madhya - - - 0.05
As at 31.03.22 As at 31.03.21 Pradesh Line)
Chandil Transmission Limited India 100.00% 100.00% MP Power Transmission Package-I Limited - - - 0.05
Dumka Transmission Limited India 100.00% 100.00% ER NER Transmission Limited - - - 0.05
Mandar Transmission Limited India 100.00% 100.00% Adjustments or eliminations effect 0.00% (0.73) 0.00% (0.49)
Koderma Transmission Limited India 100.00% 100.00% Total 100.00% 58,120.51 100.00% 51,314.10
Bidar Transmission Limited India 100.00% 100.00%
Share in profit and loss
Sikar Khetri Transmission Limited India 100.00% -
(₹ in Crores)
KPS1 Transmission Limited India 100.00% -
Name of the Entity Year ended 31.03.2023 Year ended 31.03.2022
Ramgarh II Transmission Limited India 100.00% - As % of Amount As % of Amount
Beawar Transmission Limited India 100.00% - Consolidated Consolidated
Khavda II-D Transmission Limited** India 100.00% - Net Profit Net Profit
LUHRI Power Transmission Limited India 100.00% - Parent
Meerut Shamli Power Transmission Limited India 100.00% - REC Limited 98.99% 11,054.64 100.10% 10,045.92
NERES XVI Power Transmission Limited India 100.00% - Subsidiaries - Indian
Rajgarh Transmission Limited (Earlier Rajgarh Madhya Pradesh Line)* India - 100.00% REC Power Development and Consultancy Limited 1.25% 139.79 0.53% 53.03
(formerly REC Power Distribution Company Limited)
MP Power Transmission Package-I Limited* India - 100.00% Joint Venture - Indian
ER NER Transmission Limited * India - 100.00% Energy Efficiency Services Limited - - (0.12%) (11.81)
* The above SPV has been sold during the year
Associates - Indian - - - -
** The above SPV is under process of strike off.
Adjustments or eliminations effect (0.25%) (27.45) (0.51%) (51.44)
Note: The above investments are managed as per the mandate from Government of India (GoI) and the Company does not have the practical ability to direct
the relevant activities of these Companies unilaterally. The Company therefore, considers its investment in respective Companies as associates having significant Total 100.00% 11,166.98 100.00% 10,035.70
influence despite the Company holding 100% of their paid-up equity share capital.
380 381
(₹ in Crores)
Share in Other Comprehensive Income
Year ended 31.03.2023 Year ended 31.03.2022 Within More than Within More than
As % of As % of 12 months 12 months 12 months 12 months
Name of the Entity Consolidated Consolidated (2) Non-Financial Assets
Other Amount Other Amount
(a) Current tax assets (net) 0.06 305.89 - 191.56
Comprehensive Comprehensive
Income Income (b) Deferred tax assets (net) - 3,307.56 - 3,160.12
Parent (c) Investment Property - - - -
REC Limited 100.00% (971.04) 102.02% (59.07) (c) Property, Plant & Equipment - 639.17 - 624.04
Subsidiaries - Indian (d) Capital Work-in-Progress - 2.72 - 6.07
REC Power Development and Consultancy Limited (e) Other Intangible Assets - 1.63 - 4.28
- - - -
(formerly REC Power Distribution Company Limited)
(f ) Other non-financial assets 67.11 7.29 60.49 8.19
Joint Venture - Indian
Total - Non-Financial Assets (2) 67.17 4,264.26 60.49 3,994.26
Energy Efficiency Services Limited - - (2.02%) 1.17
(3) Assets classified as held for sale 4.65 - 4.38 -
Associates - Indian - - - -
Total ASSETS (1+2+3) 70,546.98 394,955.77 42,578.58 368,281.52
Adjustments or eliminations effect - - - -
Total 100.00% (971.04) 100.00% (57.90) LIABILITIES
(1) Financial Liabilities
Share in Total Comprehensive Income
(a) Derivative financial instruments 63.11 913.84 18.89 534.25
(₹ in Crores)
Name of the Entity Year ended 31.03.2023 Year ended 31.03.2022 (b) Trade Payables
As % of Consolidated Amount As % of Consolidated Amount (I) Trade payables
Total Comprehensive Total Comprehensive (i) total outstanding dues of MSMEs - - - -
Income Income
(ii) total outstanding dues of creditors 41.68 - 36.48 -
Parent
other than MSMEs
REC Limited 98.90% 10,083.60 100.09% 9,986.85
(II) Other payables
Subsidiaries - Indian
(i) total outstanding dues of MSMEs - - - -
REC Power Development and Consultancy Limited 1.37% 139.79 0.53% 53.03
(formerly REC Power Distribution Company Limited) (ii) total outstanding dues of creditors - - - -
other than MSMEs
Joint Venture - Indian
Energy Efficiency Services Limited - - (0.11%) (10.64) (c) Debt Securities 39,878.18 197,024.15 29,637.91 189,936.70
Associates - Indian - - - - (d) Borrowings (other than debt securities) 40,338.84 96,775.29 22,529.92 84,121.67
Adjustments or eliminations effect (0.27%) (27.45) (0.52%) (51.44) (e) Subordinated Liabilities 2,796.90 3,976.40 296.95 6,519.52
Total 100.00% 10,195.94 100.00% 9,977.80 (f ) Other financial liabilities 1,235.81 24,109.30 1,598.10 24,110.63
Total - Financial Liabilities (1) 84,354.52 322,798.98 54,118.25 305,222.77
66 Amounts expected to be recovered/ settled within 12 months and beyond for each line item under asset and liabilities
(2) Non-Financial Liabilities
(₹ in Crores)
(a) Current tax liabilities (net) 10.65 - 10.25 -
(b) Provisions 60.91 50.71 57.60 48.07
Within More than Within More than
12 months 12 months 12 months 12 months (c) Other non-financial liabilities 57.09 49.36 59.54 29.50
ASSETS Total - Non-Financial Liabilities (2) 128.65 100.07 127.39 77.57
(1) Financial Assets (3) Liabilities directly associated with assets 0.02 - 0.01 -
classified as held for sale
(a) Cash and cash equivalents 48.70 - 140.99 -
Total LIABILITIES (1+2+3) 84,483.19 322,899.05 54,245.65 305,300.34
(b) Bank balances other than (a) above 2,276.05 70.86 2,453.95 65.01
Previous year figures have been reclassified/ regrouped to conform to the current classification.
(c) Trade receivables 113.00 - 94.55 -
67 There are no Off-Balance Sheet SPVs sponsored by the Company, which need to be consolidated as per accounting norms.
(d) Derivative financial instruments 2,331.97 6,649.64 343.37 5,166.80
68 The Company does not have any Overseas Assets in the form of Joint Ventures/Subsidiaries abroad.
(e) Loans 65,372.90 356,711.01 39,144.60 332,785.94
69 The disclosures as required under Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit taking
(f ) Investments 53.28 3,116.72 62.11 2,128.33 Company and Deposit taking Company (Reserve Bank) Directions, 2016 have been made in Note No. 3, 9, 10, 11, 21.1, 28.1, 47, 50,
(g) Other financial assets 279.26 24,143.28 274.14 24,141.17 51.1.3 (N), 51.1.3 (O), 51.1.3 (P), 51.1.3 (R), 51.1.3 (S), 51.1.3 (T), 51.1.3 (U), 51.1.3 (V), 51.2.2, 51.2.4, 51.3, 52, 54, 57, 61, 62, 67, 68, 70, 72.
Total - Financial Assets (1) 70,475.16 390,691.51 42,513.70 364,287.26
382 383
70 No penalties have been levied on the Company by any regulator during the year ended 31st March 2023 (previous year Nil). REC Limited
However, during the year, the Company has received notices from the National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE) Registered Office - Core-4, SCOPE Complex, 7, Lodhi Road, New Delhi - 110003, CIN: L40101DL1969GOI005095
imposing a total fine of ₹ 0.43 crores (previous year ₹ 0.76 crores) (inclusive of GST) for non-compliance on the corporate governance Annexure to be enclosed with Consolidated Balance Sheet as at 31st March 2023
requirements of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 regarding the position/quorum requirements (As prescribed by Reserve Bank of India)
of Board/ Committees, due to inadequate number of Independent Directors.
(Particulars as required in terms of Paragraph 19 of Non-Banking Financial Company - Systemically Important Non-Deposit taking Company
The Company has requested the Stock Exchanges to waive the fine since the power to appoint Independent Directors is vested with and Deposit taking Company (Reserve Bank) Directions, 2016, in so far as they are applicable to REC Ltd.)
President of India through the administrative Ministry as per Articles of Association of the Company and the Board of Directors or (₹ in Crores)
the Company cannot appoint Independent Directors on the Board of the Company. As such, there is no violation on the part of the
Company in the appointment of Independent Directors. The Company is hopeful of favorable outcome of its request to the Stock Particulars As at 31.03.2023 As at 31.03.2022
Exchanges in line with the earlier waivers of fine by BSE for similar reasons and the communication received from NSE to consider Amount Amount Amount Amount
waiver after complying with the requirement. Outstanding Overdue Outstanding Overdue
71 During the year, the company does not have any transactions with the struck off companies except for equity shares held by five LIABILITIES SIDE:
companies as on 31-03-2023 (as on 31-03-2022- five numbers), which are individually not material and thus have not been reported. (1) Loans and advances availed by the NBFC
72 No complaints have been received by the company from the customers or Offices of Ombudsman during the year ended 31st March inclusive of interest accrued thereon but not paid:
2023 (previous year Nil).
(a) Debentures/ Bonds :
73 Figures in Rupees have been rounded off to the nearest crores with two decimals, unless expressly stated.
- Secured 51,599.51 - 40,597.85 -
The Notes to Accounts 1 to 73 are an integral part of Balance Sheet and Statement of Profit & Loss.
- Unsecured 193,034.32 - 186,643.60 -
(b) Term Loans
For and on behalf of the Board - Secured Loans from Financial Institutions - - - -
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan - Unsecured Loans from NSSF 10,325.12 - 10,325.12 -
- Unsecured Loans from Banks 56,402.09 - 42,919.86 -
DIN - 06629871 DIN - 01377212
- Unsecured Loans from Financial Institutions 6,000.64 - 6,800.00 -
(c) Commercial Paper - - - -
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. (d) Other Loans - - - -
- Foreign Currency Borrowings 45,783.55 - 35,687.77 -
- FCNR(B) Loans 15,427.63 - 9,861.13 -
S. Murthy Rakesh Kumar
Partner Partner - Overdrafts from Bank 87.59 - - -
M.No. : 072290 M.No. : 087537 - Short Term Loans/ Loans Repayable on Demand 3,607.52 - 1,415.58 -
- Unsecured Loans from Holding Company - - - -
Place: Mumbai
Date: 17th May 2023 - Lease Obligations 0.02 - 0.03 -
(₹ in Crores)
ASSETS SIDE :
(2) Break-up of Loans and Advances including bills receivables
(a) Secured 223,195.81 213,512.93
(b) Unsecured 197,552.23 157,153.67
(3) INVESTMENTS :
Current Investments:
Quoted:
Unquoted:
(i) Shares : Equity 174.05 -
(ii) Debentures and Bonds 230.82 238.76
Long Term Investments:
Quoted:
(ii) Debentures and Bonds 1,098.42 259.39
(iii) Government Securities 1,431.74 1,374.51
Unquoted:
(i) Shares : Equity 140.43 214.74
384 385
(4) Borrower Group-wise classification of assets financed in (2) above : Form AOC-1
(₹ in Crores) Statement containing salient features of the financial statements of Subsidiaries/ Associates/ Joint Ventures for the Year 2022-23
AMOUNT NET OF PROVISIONS Part A: Subsidiaries
Secured Unsecured Total (₹ in Crores)
As at 31.03.2023 Particulars (I)
1. Related Parties - - - 1 Name of the Subsidiary REC Power Development and Consultancy Limited (formerly
(a) Subsidiaries - - - REC Power Distribution Company Limited)
2 Reporting period for the subsidiary concerned, if different from Not Applicable
(b) Companies in the same Group - - -
the holding company’s reporting period
(c) Other related Parties - - - 3 Reporting currency and Exchange rate as on the last date of the Not Applicable
2. Other than Related Parties 223,195.81 197,552.23 420,748.04 relevant Financial year in the case of foreign subsidiaries.
Total 223,195.81 197,552.23 420,748.04 4 Share capital 0.09
As at 31.03.2022 5 Reserves & Surplus 440.84
1. Related Parties - - - 6 Total assets 680.50
(a) Subsidiaries - - - 7 Total Liabilities 239.57
(b) Companies in the same Group - - - 8 Investments 78.77
(c) Other related Parties - - - 9 Turnover 307.27
2. Other than Related Parties 213,512.93 157,153.67 370,666.60 10 Profit/ (Loss) Before Taxation 186.35
Total 213,512.93 157,153.67 370,666.60 11 Provision for Taxation 46.56
12 Profit/ (Loss) After Taxation 139.79
(5) Investor group-wise classification of investments (current and long term) in shares and securities (both quoted and unquoted) :
13 Proposed Dividend 23.40
(₹ in Crores)
14 % Shareholding 100.00%
Category As at 31.03.2023 As at 31.03.2022
(1) Name of subsidiaries which are yet to commence operations - Nil
Market Value / Book Value (Net of Market Value / Book Value (Net of
Break up or fair Provisions) Break up or fair Provisions) (2) Names of subsidiaries which have been liquidated or sold during the year - Nil
value or NAV value or NAV
1. Related Parties Part B: Associates and Joint Ventures
2. Other than Related Parties 3,169.74 3,170.00 2,209.15 2,190.44 Details of Associates
Total 3,169.74 3,170.00 2,209.15 2,190.44 (₹ in Crores)
Name of Associates Ko- Chandil Dumka Mandar Bidar Sikar KPS1 Ramgarh Beawar Khavda Luhri Meerut NERES
(6) Other Information derma Trans- Trans- Trans- Trans- Khetri Trans- II Trans- Trans- II-D Power Shamli XVI
(₹ in Crores) Trans- mission mission mission mission Trans- mission mission mission Trans- Trans- Power Power
Particulars As at 31.03.2023 As at 31.03.2022 mission Limited* Limited# Limited# Limited* mission Limited* Limited* Limited* mission mission Trans- Trans-
Limited * Limited* Limited* Limited* mission mission
(i) Gross Credit-impaired Assets Limited# Limited#
(a) Related Parties - - 1 Latest audited Balance Sheet Date 31- Mar 31 -Mar 31- Mar 31- Mar 31 -Mar 31- Mar 31- Mar 31- Mar 31- Mar 31 -Mar 31- Mar 31- Mar 31- Mar
-23 -23 -23 -23 -23 -23 -23 -23 -23 -23 -23 -23 -23
(b) Other than related Parties 14,892.08 17,159.89 2 Shares of Associate/Joint Ventures 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
(ii) Net Credit-impaired Assets held by the company on the year
(a) Related Parties - - end Number
Amount of Investment in 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
(b) Other than related Parties 4,372.57 5,594.16 Associates/ Joint Venture
(iii) Asset acquired in satisfaction of debts 233.85 - Extent of Holding (%) 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
3 Description of how there is Refer Note 1
significant influence
4 Reason why the associate/joint NA NA NA NA NA NA NA NA NA NA NA NA NA
For and on behalf of the Board venture is not consolidated **
5 Networth attributable to (2.28) (2.55) (2.10) (1.87) (0.10) (0.67) (0.57) (0.69) (0.71) 0.03 (0.46) (0.38) (0.14)
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan Shareholding as per latest audited
ED & Company Secretary Director (Finance) Chairman & Managing Director Balance Sheet
DIN - 06629871 DIN - 01377212 6 Profit / (Loss) for the year (0.01) (0.01) (0.00) (0.00) (0.11) (0.72) (0.62) (0.74) (0.76) (0.02) (0.51) (0.43) (0.19)
i. Considered in Consolidation ** - - - - - - - - - - - - -
ii. Not Considered in Consolidation (0.01) (0.01) (0.00) (0.00) (0.11) (0.72) (0.62) (0.74) (0.76) (0.02) (0.51) (0.43) (0.19)
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. * The latest audited Balance Sheet available for associates have been prepared on the basis of IND-AS.
Chartered Accountants Chartered Accountants # The latest management certified Balance Sheet available for associates have been prepared on the basis of IND-AS
Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091 **Associates classified under held for sale and valued at cost or fair market value (less cost to sales) whichever is less, hence profit not considered.
Note : 1. The Group is holding 100% of shares but these investments are managed as per the mandate from Government of India and Group does not have the
practical ability to direct the relevant activities of these companies unilaterally, hence treated as associate company.
Partner Partner
Note : 2. Thirteen associates have been transferred during FY 2022-23.
M.No. : 072290 M.No. : 087537
Place: Mumbai
Date: 17th May 2023
386 387
Details of Joint Venture : NA Independent Auditors’ Report
(1) Names of associates or joint ventures which are yet to commence operations - NIL
To the Members of
(2) Names of associates or joint ventures which have been liquidated or sold during the year.
REC Limited
The following associates have been sold during the year, as a part of business process:
Report on the Audit of the Consolidated Ind AS Financial Statements
Name of SPV Date of Sale
Rajgarh Transmission Limited 30/05/2022 Opinion
MP Power Transmission Package-I Limited 21/01/2023 We have audited the accompanying consolidated Ind AS financial statements of REC Limited (hereinafter referred to as “the Holding Company”)
and its subsidiary (Holding Company and its subsidiary together referred to as “the Group”) which comprise the Consolidated Balance Sheet
ER NER Transmission Limited 10/10/2022
as at 31st March, 2023, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement
Neemuch Transmission Limited 24/08/2022 of Changes in Equity and the Consolidated Cash Flow Statement for the year then ended, and notes to the consolidated Ind AS financial
statements, including a summary of significant accounting policies (hereinafter referred to as “the Consolidated Ind AS Financial Statements”).
Gadag II A Transmission Limited 08/11/2022
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated Ind AS financial
WRSR Power Transmission Limited 18/01/2023 statements give the information required by the Companies Act, 2013, (“the Act”) in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of their consolidated state of affairs of the Group as at 31st March, 2023,
Khavda II-A Transmission Limited 28/03/2023
of its consolidated Profit (including other comprehensive Income), consolidated changes in equity and consolidated cash flows for the year
Khavda II-B Transmission Limited 21/03/2023 then ended on that date.
Khavda II-C Transmission Limited 21/03/2023 Basis for Opinion

KPS3 Transmission Limited 21/03/2023 We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies act, 2013. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial
KPS2 Transmission Limited 21/03/2023
Statements section of our report. We are independent of the Group in accordance with the Code of Ethics issued by ICAI, and we have fulfilled
Khavda RE Transmission Limited 21/03/2023 our other ethical responsibilities in accordance with the provisions of the Act, 2013. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
ERWR Power Transmission Limited 21/03/2023
Emphasis of matter
We draw attention to Note No. 51.1.3 to the consolidated Ind AS Financial Statements regarding the provision of impairment allowance in
J.S. Amitabh Ajoy Choudhury Vivek Kumar Dewangan respect of its loan assets and Letters of Comfort. In this regard, we have relied upon the basis of determination of impairment allowance in so
ED & Company Secretary Director (Finance) Chairman & Managing Director far as it relates to technical aspects/parameters considered by independent agency and management judgement for ascertaining impairment
DIN - 06629871 DIN - 01377212 allowance as management overlay.
In terms of our Audit Report of even date Our opinion is not modified in respect of these matters.
For S.K. Mittal & Co. For O.P. Bagla & Co. LLP. Key Audit Matters
Firm Reg. No.: 001135N Firm Reg. No.: 000018N/N500091 Key audit matters (“KAM”) are those matters that, in our professional judgment, were of most significance in our audit of the consolidated Ind
AS financial statements of the current period. These matters were addressed in the context of our audit of the consolidated Ind AS Financial
Partner Partner Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined
M.No. : 072290 M.No. : 087537 the following matters described below to be the key audit matters to be communicated in our report:
S. No. Key Audit Matter Auditor’s Response

Place: Mumbai
Date: 17th May 2023 1. Impairment allowance of Loan Assets – We have applied following audit procedures in this regard
(Refer Note No. 51.1.3 to the Consolidated Ind AS Financial a). According to the provisions of Ind AS 109 “Financial Instruments”,
Statements read with accounting policy No. 3.13) we have obtained the report of the external agency and verified
The Company follows a Board approved methodology the criterion/framework with various regulatory updates
wherein assessment for allowance is carried out by alongwith Company’s internal guidelines and procedures in
an external agency for impairment based on certain respect of the impairment allowance.
criterion/framework classifying the assets into various b) Verification of loan assets on test check basis covering substantial
stages depending upon credit risk and level of evidence part of total loans with respect to monitoring thereof for recovery/
of impairment. performance aspects and assessment of the loan impairment
Impairment allowance is measured as product of the considering management perception on the same.
Probability of Default, Exposure at Default and Loss
Given Default being the key parameters for assessing the
impairment allowance.
388 389
S. No. Key Audit Matter Auditor’s Response S. No. Key Audit Matter Auditor’s Response
The key indicators underlying for assessment of c) Recoveries are verified applying the standard audit procedures 1. Valuation of account Receivable in view of risk of credit Our audit incorporated the following procedure with regards to
impairment allowance are appraised on an ongoing basis to ascertain level of stress. Loan balances are confirmed and loss provisioning of receivables:
by the management. quality of the borrower is evaluated and tested with key control (Refer to Note no. 46 “Financial Instrument” and note no 12 • Understood and evaluated the accounting policy of the company.
Further the management has adopted a methodology parameters. “Trade Receivable”) • We evaluated the design and tested the operating effectiveness
which in addition to the model adopted as above is further d) Assessment of impairment based upon performance of the loan Accounts receivables is a significant item in the Company’s of key controls in relation to determination of estimated credit
analyzed on case to case basis and wherever impairment assets is carried out on the basis of relevant evidence on record financial statements as at March 31, 2023 and assumptions loss.
impact need to be changed the same is considered in the provided to us. used for estimating the credit loss on receivables is an area • Inquired with senior management regarding status of
financial statements. e) We have discussed with the management wherever underlying which is influenced by management’s judgment. collectability of the receivable
In view of the significance of the amount of loan assets weakness is observed and management assessment is carried out The Company makes an assessment of the estimated • For material balances, the basis of provision was discussed with
in the Consolidated Ind AS Financial Statements i.e 90.67 in detail in such cases. credit losses basis credit risk, project status, past history, the management.
% of total assets, the audit procedure for impairment of f) Components and calculations in the study for impairment latest discussion/ correspondence with the customer.
loan assets has been considered as Key Audit Matter in our • Assessed and challenged the information used by the Management
allowance carried out by external agency are relied upon by us Given the relative significance of these receivables to
audit. to determine the expected credit losses by considering credit risk
and test checks are carried out for the same. Such components the financial statements and the nature and extent of of the customer, cash collection, performance against historical
are credit rating of borrowers (including ratings issued by Ministry audit procedures involved to assess the recoverability of trends and the level of credit loss charges over time.
of Power), calculation of probability of default/loan given defaults receivables, we determined this to be a key audit matter.
etc. Our audit procedure in the same are limited in view of reliance
on report of the external agency. 2. Accuracy of recognition, measurement, presentation Principal Audit Procedures
and disclosures of revenues and other related balances We assessed the Company’s process to identify the impact of adoption
g) Further, the Management, pursuing a Board approved in view of adoption of Ind AS 115 “Revenue from
methodology reviews the impairment allowance in the report of of the new revenue accounting standard.
Contracts with Customers”
the external agency and enhanced/reduced the impairment on We carried out the following procedures:
case-to-case basis as management overlay. We have obtained a The application of the new revenue accounting standard
• Understand the design of internal controls relating to
detailed analysis from the management for such changes. Our involves certain key judgments relating to identification
implementation of the new revenue accounting standard.
audit procedure in this regard is constrained by the management of distinct performance obligations, determination of
transaction price of the identified performance obligations, • Selected a sample of continuing and new contracts, and tested
appraisal and we have relied upon the same.
the appropriateness of the basis used to measure revenue the operating effectiveness of the internal control, relating
2. Fair valuation of Derivative Financial Instruments We have applied following audit procedure in this regard recognized over a period. to identification of the distinct performance obligations and
(Refer Note No. 9 to the standalone Ind AS Financial a) Discussing and understanding management’s perception and determination of transaction price. We carried out a combination
Refer Notes 3.3 and 41 to the Financial Statements
Statements read with accounting policy No. 3.13) studying policy of the company for risk management. Motive of procedures involving enquiry and observation, re-performance
of derivative transactions are studied and observed underlying and inspection of evidence in respect of operation of these
To mitigate the Company’s exposure to foreign currency
exposure is not more than the volume of derivatives. controls.
risk and interest rate risk, non-INR cash flows are monitored
and derivative contracts are entered into in accordance b) Verification of fair value of derivative in terms of Ind AS 109. • Regarding the stage of completion and revenue in respect
with the Company’s board approved risk management of ongoing projects, we have relied upon the reports of the
c) Testing the accuracy and completeness of derivative transactions.
policies and RBI guidelines. Technical Experts of the Company as we did not have that
d) Evaluation of management’s key internal controls over technical expertise with us.
The Company has applied hedge accounting requirements classification, valuation, and valuation models of derivative
as per Ind AS 109 ‘Financial Instruments’ wherein certain • Selected a sample of continuing and new contracts and
instruments.
derivative contracts have been designated as hedging performed the following procedures:
e) Obtained details of various financial derivative contracts as
instruments in ‘Cash flow hedge’ relationships. These • Read, analyzed and identified the distinct performance
outstanding as on 31st March 2022.
arrangements have been entered into to mitigate foreign obligations in these contracts.
currency exchange risk and interest rate risk arising from f ) Verification of underlying assumptions in estimating the fair
• Compared these performance obligations with that identified
certain debt instruments denominated in foreign currency. valuation arrived at for those financial derivative contracts.
and recorded by the Company.
The derivatives are measured at fair value as per Ind AS g) We also obtained confirmations from the banks with whom
• Considered the terms of the contracts to determine the
109. Mark to market gain/loss on these derivatives are such financial derivative contracts have been entered into and
transaction price including any variable consideration to verify
recognised in the other comprehensive income for cash independently compared the valuation so arrived at by the
the transaction price used to compute revenue and to test the
flow hedges. contracting banks.
basis of estimation of the variable consideration.
In view of significance and impact on financial statements h) Additionally, we have verified the accounting of gain/loss on
• Calculations in respect of unearned revenue were test-checked
we have identified it as a key audit matter. mark to market basis in the other comprehensive income for cash
using reports provided by project experts with respect to the
flow hedges.
percentage of work completed.
i) Assessing whether the financial statement disclosures
• In respect of samples relating to fixed price contracts, progress
appropriately reflect the Company’s exposure to derivatives
towards satisfaction of performance obligation used to compute
valuation risks with reference to the requirements of the prevailing
recorded revenue was verified with the terms of contracts and
accounting standards and Reserve Bank of India Guidelines.
status of work provided by the project experts of the company.
The following key audit matters with respect audit opinion on the financial statement of REC Power Development and Consultancy Limited • Sample of revenues disaggregated by type and service offerings
(formerly known as REC Power Distribution Company Limited), a wholly owned subsidiary company has been reported by the component was tested with the performance obligations specified in the
auditors vide their report dated 15.05.2023 and has been reproduced by us as under: underlying contracts.
• Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings
390 391
Information Other than the Consolidated Ind AS Financial Statements and Auditor’s Report thereon • Evaluate the overall presentation, structure and content of the consolidated Ind AS financial statements, including the disclosures, and
whether the consolidated Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair
The Company’s Board of Directors are responsible for the other information. The other information comprises the Directors’ Report, Corporate presentation.
Governance Report, Business Responsibility Report and Management Discussion and Analysis etc in the Annual report but does not include
the consolidated Ind AS financial statements and our report thereon. Such other information is expected to be made available to us after the • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
date of this Auditor’s Report. Group to express an opinion on the consolidated Ind AS financial statements. We are responsible for the direction, supervision and
performance of the audit of the financial statements of such entities included in the consolidated Ind AS financial statements of which
Our opinion on the consolidated Ind AS financial statements does not cover the other information and we will not express any form of we are the independent auditors. For the other entities included in the consolidated Ind AS financial statements, which have been
assurance conclusion thereon. audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried
In connection with our audit of the consolidated Ind AS financial statements, our responsibility is to read the other information identified out by them. We remain solely responsible for our audit opinion.
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated Ind Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable that the
AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality
If, based on the work we have performed, we conclude that there is a material misstatement therein, we are required to communicate the and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any
matter to those charged with governance. identified misstatements in the financial statements.
We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated Ind AS
Management’s Responsibility for the Consolidated Ind AS Financial Statements
financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit
The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated Ind AS financial statements and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
in term of the requirements of the Companies Act,2013 that give a true and fair view of the consolidated financial position, consolidated
Other Matters
financial performance (including other comprehensive income), consolidated changes in equity and consolidated cash flows of the Group
in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 We did not audit the financial statements of the subsidiary whose financial statements reflect total assets of ₹ 680.50 Crores (₹ 518.61 Crores as
of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ,(“Ind AS”). The respective Board of Directors of at 31st March 2022) as at 31st March 2023, total revenues of ₹ 307.27 Crores (Previous year ₹ 177.20 Crores) and net cash flows amounting to
the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of ₹ (4.89) Crores (Previous year ₹ (24.16) Crores) for the year ended on that date, as considered in the Consolidated Ind AS Financial Statements.
the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application The Consolidated Ind AS Financial Statements also include the subsidiary’s share of net profit after tax of ₹ 139.79 crores (Previous Year ₹ 53.03
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation crores) and total comprehensive income of ₹ 139.79 crores (Previous Year ₹ 53.03 crores) as considered in the Consolidated Ind AS Financial
and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the Statements. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management
accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free and our opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of
from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Ind AS the subsidiary, and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiary, is
Financial Statements by the Directors of the Holding Company, as aforesaid. based solely on the reports of the other auditors.
In preparing the consolidated Ind AS financial statements, the respective Board of Directors of the companies included in the Group are Our opinion on the consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not
responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no statements/financial information certified by the Management.
realistic alternative but to do so.
Report on Other Legal and Regulatory Requirements
The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting process of
the Group. 1. As required by section 143(3) of the Act, we report, to the extent applicable, that:
Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit of the aforesaid Consolidated Ind AS Financial Statements.
Our objectives are to obtain reasonable assurance about whether the consolidated Ind AS financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a (b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid Consolidated Ind AS
high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when Financial Statements have been kept so far as it appears from our examination of those books and the reports of the other
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be auditors.
expected to influence the economic decisions of users taken on the basis of these consolidated Ind AS financial statements. (c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, Consolidated Changes in Equity and the
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. Consolidated Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained
We also: for the purpose of preparation of the Consolidated Ind AS Financial Statements.
• Identify and assess the risks of material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error, (d) In our opinion, the aforesaid Consolidated Ind AS Financial Statements comply with the Accounting Standards specified under
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide Section 133 of the Act.
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from (e) Vide Notification No. G.S.R. 463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government Companies have
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. been exempted from applicability of the provisions of Section 164(2) of the Companies Act, 2013.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the (f ) With respect to the adequacy of the internal financial controls over financial reporting of the company and operative
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has effectiveness of such controls , refer to our separate report in “Annexure-A”; and
adequate internal financial controls system in place and the operating effectiveness of such controls.
(g) Pursuant to Notification no. GSR463(E) dated dated 5th June 2015 issued by the Ministry of Corporate Affairs, provisions of
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures Section 197 of the Act are not applicable to the holding/subsidiary company being government companies.
made by management.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the based on the consideration of report of the other auditors on separate Ind AS financial statements as also the other financial
Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our information of the subsidiary:
Auditor’s Report to the related disclosures in the consolidated Ind AS financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor’s Report. However, future i) The Consolidated Ind AS Financial Statements disclose the impact of pending litigations on the consolidated financial
events or conditions may cause the Group to cease to continue as a going concern. position of the Group - Refer Note 46 to the Consolidated Ind AS Financial Statements;
392 393
Annexure-A to the Independent Auditors’ Report of even date on the consolidated Ind AS financial
ii) According to the information and explanations given to us, The Group does did not have any long term contracts Statements of REC Limited
including derivative contracts for which there are any material foreseeable losses;
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Holding Company and its subsidiary company incorporated in India. In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended 31st March 2023,
we have audited the internal financial controls over financial reporting of REC Limited (hereinafter referred to as “the Holding Company”) and
iv) (a) The Management of the group has represented (refer Note No. 10.5) that, to the best of its knowledge and belief,
its subsidiary company, which are companies incorporated in India, as of that date.
no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person Management’s Responsibility for Internal Financial Controls
or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any The respective Board of Directors of the Holding Company, its subsidiary company, which are companies incorporated in India, are responsible
manner whatsoever by or on behalf of the Group (“Ultimate Beneficiaries”) or provide any guarantee, security or the for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the
like on behalf of the Ultimate Beneficiaries; Group and considering the essential components of internal control stated in the “Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI)”. These responsibilities include the design, implementation
(b) The Management of the group has represented (refer Note No. 10.5 ), that, to the best of its knowledge and belief, no
and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
funds (which are material either individually or in the aggregate) have been received by the Group from any person or
business, including adherence to the respective Company’s policies, the safeguarding of its assets, the prevention and detection of frauds
entity, including foreign entity (“Funding Parties”), with the understanding, whether recorded in writing or otherwise,
and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required
that the Group shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner
under the Act.
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; Auditors’ Responsibility
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance
of the Companies (Audit and Auditors) Rules, 2014 as amended and provided under (a) and (b) above, contain any
Note”) issued by the ICAI and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the
material misstatement.
extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and
(v) The interim dividend declared and paid during the year by the Group till the date of this report is in compliance with the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
section 123 of the Companies Act, 2013. whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively
in all material respects.
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 with respect to using accounting software for maintaining
its books of account which has certain features e.g. edit log etc. as enumerated in aforesaid proviso is applicable to the Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
Company with effect from 1st April 2023. Therefore, reporting under Rule 11(g) of Companies (Audit and Auditors) financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
Rules, 2014 is not applicable for the financial year ended 31st March 2023. an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
2. With respect to the matters specified in clause (xxi) of paragraph 3 of the Companies (Auditor’s Report) Order, 2020 (the “Order”/
auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
“CARO”) issued by the Central Government in terms of Section 143(11) of the Act, to be included in the Auditor’s Report, we report that
according to the information and explanations given to us, and based on the CARO report issued by us for the Company and report We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary, incorporated in
issued by the auditor of its subsidiary included in the consolidated financial statements, there are no qualifications or adverse remarks India, in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit
in such reports. opinion on the Company’s internal financial controls system with reference to consolidated Ind AS financial statements.
Meaning of Internal Financial Controls over Financial Reporting
A Group’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A Group’s internal financial control over financial reporting includes those policies and procedures that:
M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP. a. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
Chartered Accountants, Chartered Accountants, assets of the Group;
b. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance
Name : S. Murthy Name : Rakesh Kumar with authorizations of management and directors of the Group; and
Membership Number : 072290 Membership Number : 087537 c. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Group’s
UDIN : 23072290BGYVDL7158 UDIN : 23087537BGXEFQ8986 assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting

Place : Mumbai
Date : 17th May 2023 Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
394 395
Opinion COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH
In our opinion, the holding company, its subsidiary, which are companies incorporated in India, have, in all material aspects, an adequate internal financial
SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF REC
controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as of 31st March 2023, based on LIMITED FOR THE YEAR ENDED 31 MARCH 2023.
the internal control over financial reporting criteria established by the Group considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. The preparation of consolidated financial statements of REC Limited for the year ended 31 March 2023 in accordance with the financial
reporting framework prescribed under the Companies Act, 2013 (Act) is the responsibility of the management of the company. The statutory
Other Matters auditors appointed by the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act is responsible
for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act, based on independent audit in
Our aforesaid reports under Section 143(3) (i) of the Act on the adequacy and operating effectiveness of the internal financial controls over accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their
financial reporting in so far as it relates to the subsidiary company which is incorporated in India, is based on the corresponding reports of the Audit Report dated 17 May 2023.
auditors of such company.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated financial statements
Further, we have considered the disclosure reported above in determining the nature, timing and extent of audit tests applied in our report of REC Limited for the year ended 31 March 2023, under Section 143(6)(a) read with section 129(4) of the Act. We conducted a supplementary
of the financial statements of the Group, and the above disclosure does not affect our opinion on the operating effectiveness of the Internal audit of the financial statements of REC Limited, Koderma Transmission Limited and REC Power Development and Consultancy Limited,
Financial Control over financial reporting of the Group. but did not conduct supplementary audit of the financial statements of subsidiaries, associate companies and jointly controlled entities
mentioned in Annexure for the year ended on that date. This supplementary audit has been carried out independently without access to the
working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personnel and a selective
examination of some of the accounting records.
On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to any comment upon or
supplement to statutory auditors’ report under section 143(6)(b) of the Act.
For and on behalf of the

M/s S.K. Mittal & Co. M/s O.P. Bagla & Co. LLP. Comptroller & Auditor General of India
(Sanjay K. Jha)
Name : S. Murthy Name : Rakesh Kumar Director General of Audit (Energy)
Designation : Partner Designation : Partner New Delhi
UDIN : 23072290BGYVDL7158 UDIN : 23087537BGXEFQ8986 Place: New Delhi
Dated: 31 July 2023
Place : Mumbai
ANNEXURE
List of Company/Subsidiaries/JVs/Associate Companies of which supplementary audit has not been conducted by the Comptroller
and Audit General of India:
Sl No. Name of the Subsidiary/Joint Venture/ Associates Type of Company
1. Chandil Transmission Limited Associates
2. Dumka Transmission Limited Associates
3. Mandar Transmission Limited Associates
4. Bidar Transmission Limited Associates
5. Ramgarh II Transmission Limited Associates
6. Khavda II - D Transmission Limited Associates
7. Beawar Transmission Limited Associates
8. Sikar Khetri Transmission Limited Associates
9. Luhri Power Transmission Limited Associates
10. Meerut Shamli Power Transmission Limited Associates
11. NERES XVI Power Transmission Limited Associates
12. KPS1 Transmission Limited Associates
396 397
Details of REC Offices
Registered Office Core-4, SCOPE Complex, 7 Lodhi Road, New Delhi - 110003
 +91-11-4309 1500 / 1501
 [email protected]
Corporate Office Plot no. I-4, Sector 29, Gurugram, Haryana - 122001
 +91-124-444 1300
Training Centre REC Institute of Power Management & Training
RECIPMT Campus, NPA Post, Shivrampally, Near Aramghar Crossroad, Hyderabad - 500052
 +91-40-2988 5851 / 5852; +91-40-2955 5901
Regional Office (North) BAY no. 7-8, Sector-2 Regional Office Hall no. 3, West Block, 2nd Floor, Metro Walk
Punjab, Haryana, Panchkula - 134112 Madhya Pradesh Bittan Market, Bhopal - 462016
Himachal Pradesh  +91-172-2563 863 / 864  +91-755-2460 006
 +91-172-2580 476  [email protected]
Regional Office (East) I B-186, Sector-III Regional Office (North East) SRADDHA, M.G. Path, G.S. Road Crossing
West Bengal, Sikkim, Salt Lake City Assam, Mizoram, Sohum/SBI Point, Christian Basti
Tripura, Kolkata - 700106 Nagaland, Meghalaya, Guwahati - 781005
Andaman & Nicobar  +91-33-2335 6989 / 6994 / 6998 Manipur, Arunachal  +91-361-2343 713
Islands  [email protected] Pradesh  [email protected]
Regional Office (West) 51-B, Mittal Tower Regional Office F-6 & F-7, Block B-1, 1st Floor
Maharashtra, Goa, 5th Floor, Nariman Point Chhattisgarh Pujari Chambers, Commercial Complex
Gujarat, Dadra & Nagar Mumbai - 400021 Panchpedi Naka, Raipur - 492001
Haveli, Daman & Diu  +91-22-2283 0985 / 3068 / 3055  +91-771-2241 055
 [email protected]  [email protected]
State Office Pt. Padamdev Commercial Regional Office 101 & 102, Om Shree Enclave, Beside Loyola
Himachal Pradesh Complex, Phase-II, First Floor Jharkhand School, Airport Road Hinoo, Ranchi - 834002
The Ridge, Shimla - 171001  +91-651-2253 123
 +91-177-2653 411  [email protected]
Regional Office 157-A, Gandhi Nagar Regional Office Deen Dayal Bhawan, 5th Floor, Ashok Nagar
Jammu & Kashmir, Behind Apsara Cinema Odisha Janpath, Bhubaneswar - 751009
Ladakh Jammu - 180004  +91-674-2393 206
 +91-191-2450 800  +91-674-2536 649
Regional Office 19/8, Indira Nagar Extension Regional Office 1/5, Halasuru Road, Bengaluru - 560042
Uttar Pradesh Ring Road, Lucknow - 226016 Karnataka  +91-80-2559 8244
 +91-522-271 6324 / 7376  +91-80-2555 0240
 +91-522-407 4944  [email protected]
Regional Office 7, New Road, Opposite MKP Regional Office RECIPMT Campus, NPA Post, Shivrampally
Uttarakhand College, Dehradun - 248001 Telangana Near Aramghar Crossroad
 +91-135-2650 799 Hyderabad - 500052
 [email protected]  +91-40-2980 5034 / 4520 / 6745
 +91-40-2988 6745
Regional Office Maurya Lok Complex Regional Office 54-15-13, BSR Hill View, 2nd Floor, Srinivasa
Bihar Block - C, 4th Floor Andhra Pradesh Nagar Bank Colony, Vijayawada - 520008
New Dak Bangalow Road  +91-866-2973 405
Patna - 800001  [email protected]
 +91-612-222 4596 / 1131
Regional Office J-4-A, Jhalana Dungari Regional Office O-5, 4th Floor, Saphallyam, Commercial
Rajasthan Institutional Area Kerala, Lakshadweep Complex, TRIDA Building, Palayam
Jaipur - 302004 Thiruvananthapuram - 695034
 +91-141-270 7840 / 0161  +91-471-2328 662
State Office Plot no. 585, T.P. Scheme no.2 Regional Office 12 & 13, T.N.H.B. Complex, 180 Luz Church
Gujarat, Dadra & Nagar Behind Pusti Complex Tamil Nadu, Puducherry Road, Mylapore, Chennai - 600004
Haveli, Daman & Diu Atma Jyoti Ashram Road  +91-44-2467 2376
Subhanpura, Vadodara – 390023  +91-44-2498 7960
 +91-265-2397 487  [email protected]
398
ADDENDUM TO THE NOTICE OF 54TH ANNUAL GENERAL MEETING OF REC LIMITED
Addendum to the Notice of the Fifty Fourth (54th) Annual General Meeting (AGM) of REC Limited scheduled to be held on Wednesday,
September 6, 2023 at 11:00 AM (IST) through Video Conferencing (VC)/ Other Audio Visual Means (OAVM).
Pursuant to Section 160 of the Companies Act, 2013 read with Rule 13 of the Companies (Appointment and Qualification of Directors) Rules,
2014, and other applicable provisions of the Companies Act, 2013, notice is hereby given to the members of REC Limited that the Company
has received a Notice for the candidature of Shri Shashank Misra (DIN: 08364288) to appoint as Government Nominee Director of REC Limited.
Accordingly, after requisite statutory compliances, this addendum is being circulated electronically to the members and it shall be form an
integral part of the original Notice dated August 11, 2023 of 54th AGM of the Company and the notes provided therein, for all purposes.
SPECIAL BUSINESS:
Item no. 10: Appointment of Shri Shashank Misra (DIN: 08364288) as Government Nominee Director.
To consider and if thought fit, to pass, with or without modification(s), the following resolution(s) as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 152, 161 and other applicable provisions of the Companies Act, 2013 (“Act”) and
Rules made thereunder, Regulation 17(1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and/or any other applicable laws (including any statutory amendment(s), modification(s)
or re-enactment(s) thereof, for the time being in force), the Articles of Association of the Company read with Office Order dated August 21,
2023 issued by the Ministry of Power (MoP), Government of India, Shri Shashank Misra (DIN: 08364288), who was appointed by the Board of
Directors, as Government Nominee Director on the Board of the Company with effect from August 21, 2023 and until further orders, and in
respect of whom the Company has received a notice in writing proposing his candidature for Directorship under Section 160 of the Act, be
and is hereby appointed as the Government Nominee Director and he shall be liable to retire by rotation.”
By Order of the Board of Directors
For REC Limited
J.S. Amitabh
Place : REC World Headquarters
Haryana – 122001
NOTES:
1. An Explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 in respect of the above Special Business to be
transacted at the AGM is annexed hereto.
2. All the processes, notes and instructions relating to remote e-voting and e-voting during the AGM as set out in the Notice of 54th AGM
of the Company shall mutatis-mutandis apply to the Resolution proposed in this Addendum to the Notice.
STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013
THE FOLLOWING STATEMENT SETS OUT ALL MATERIAL FACTS RELATING TO THE SPECIAL BUSINESS SET OUT IN THE NOTICE.
Item No. 10
REC is a Government Company and as per its Articles of Association, the President of India has the power to appoint Chairman / Chairman
& Managing Director of the Company and also Vice Chairman/Managing Director, Whole time Functional Director and other Directors in
consultation with the Chairman/Chairman and Managing Director.
However, in accordance with the proviso of Regulation 17(1C) of SEBI (LODR) Regulations, effective from January 17, 2023, a public sector
Company shall ensure the approval of the shareholders for appointment of a person on the Board of Directors at the next general meeting.
The Ministry of Power (MoP), vide its Office Order dated August 21, 2023, has appointed Shri Shashank Misra (DIN: 08364288), Joint Secretary,
MoP as Government Nominee Director on the Board of REC, with immediate effect and until further orders, vice Shri Piyush Singh (DIN:
07492389). Further, on recommendation of the Nomination & Remuneration Committee, the Board of Directors of the Company has approved
the appointment of Shri Shashank Misra through circulation resolution passed on August 23, 2023 as Government Nominee Director of the
Company, with effect from August 21, 2023 subject to the approval of shareholders and recommended the passing of the Ordinary Resolution
as proposed at Item No. 10 of the AGM notice, by Shareholders of the Company.
A brief profile of Shri Shashank Misra, in terms of SEBI (LODR) Regulations, 2015 and other regulatory provisions, is annexed to this Notice.
Pursuant to the Articles of Association of the Company and applicable statutory provisions, Shri Shashank Misra shall be liable to retire by
rotation. Further, the terms & conditions of his appointment will be governed by MoP's Office Order dated August 21, 2023 and/or any other
order etc. issued by the Government of India, in this regard. It is also informed that the Government Nominee Director is not entitled to receive
any sitting fees from the Company, as per the norms of Government of India. However, payment / reimbursement of TA/DA, out-of-pocket
expenses etc., if any, in respect of Board or Committee meetings to be attended by him, would be borne by the Company.
Shri Shashank Misra has declared that he is not debarred from being appointed as a Director by SEBI or any other such authority, and he is
not disqualified from being appointed as a Director of the Company, in terms of the provisions of the Act. Further, he is not related to any
Director or Key Managerial Personnel of the Company. The Company has received a notice in writing, proposing his candidature for the office
of Director in terms of Section 160 of the Act.
399
All documents related to this business proposal shall be available for inspection through electronic mode, from the date of circulation of this
Notice and upto the date of the AGM.
Except Shri Shashank Misra, none of the Directors or Key Managerial Personnel or their relatives have any concern or interest, financial or
otherwise, in passing of the said Ordinary Resolution, other than the extent of their holding in the securities of the Company, if any.
In view of the above, it is proposed to obtain the approval of shareholders for appointment of Shri Shashank Misra as Government Nominee
Director of the Company, by passing Ordinary Resolution as set out at Item No. 10 in Addendum to the notice of 54th AGM of the Company.
By Order of the Board of Directors

For REC Limited
J.S. Amitabh
Place : REC World Headquarters
Haryana – 122001
*****
Brief Profile of the Director seeking appointment/reappointment, as set out in this Notice, in terms of SEBI (LODR) Regulations &
other regulatory provisions.
Name of the Director(s) Shri Shashank Misra

DIN 08364288
Date of birth March 16, 1983
Age 40 years
Date of first appointment on the August 21, 2023
Board
Qualification(s) IAS (MP: 2007),
B. Tech (Electrical) from IIT Delhi
Detailed profile including skills Shri Shashank Misra, Government Nominee Director, is presently posted as Joint Secretary in the
and capabilities Ministry of Power, Government of India. Prior to joining the Ministry of Power, he has served in
Department of Revenue, Ministry of Finance, Government of India. He has also worked in various
capacities in Madhya Pradesh Government which includes Managing Director of Madhya Pradesh
Road Development Corporation Limited, Madhya Pradesh Building Development Corporation
Limited & Madhya Pradesh State Asset Management Company Limited; Chairman of Ujjain Smart
City Limited and as CEO of Madhya Pradesh Rural Road Development Authority.
Nature of expertise in specific Shri Shashank Misra, brings in expertise in various areas such as financial management, power sector
functional areas domain expertise, project appraisal, corporate planning & strategy, risk management, leadership,
board practices & governance, environment & social areas.
Terms & conditions of appointment The terms & conditions of his appointment will be governed by MoP's Office Order dated August 21,
and proposed remuneration to be 2023 and/or any other order etc. issued by the Government of India, in this regard.
paid The Government Nominee Director is not entitled to receive any sitting fees from the Company, as
per the norms of Government of India. However, payment / reimbursement of TA/DA, out-of-pocket
expenses etc., if any, in respect of Board or Committee meetings to be attended by him, would be
borne by the Company.
Shareholding in the Company Nil
including as a beneficial owner
Number of Board meetings Not Applicable
attended during the FY 2022-23
Number of Committee meetings Not Applicable
attended during the FY 2022-23
Directorship held in other Madhya Pradesh Building Development Corporation Limited
companies / listed entities
Details of listed entities from which Nil
resigned in the past three years
Membership/ Chairmanship Nil
of Committee across all public
companies other than REC
Relationship with Directors & KMP No inter-se relationship with any other Director or KMP of the Company
inter-se
400

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REC Limited I autl ~T f~f-q~s

ONI 1 4UM • OHI , ,,,,,ILY ' ONI 'UTU_.

SEC-l 1187(2)/2023/1421 Dated: September 08,2023

Listing Department, Corporate Relationship Department

~~\ljHCfjI;ft ~~~I This is for your information.

Jyoti Digitally signed by Jyoti Shubhra Amitabh

Shri Manoj Sharma Dr. Gambheer Singh

Dr. Manoj Manohar Pande Dr. Durgesh Nandini

Shri Narayanan Thirupathy

Chief Vigilance officer Shri Virender Kumar Adhana

Company Secretary Shri J.S. Amitabh

Corporate Identification Number L40101DL1969GOI005095

Corporate Website & Email www.recindia.nic.in | [email protected]

Equity Shares listed on National Stock Exchange of India Limited

Depositories National Securities Depository Limited

Statutory Auditors S.K. Mittal & Co., Chartered Accountants

Registrar & Transfer Agents For Equity Shares

Details of listed Not Applicable Not Applicable Not Applicable

REC funded Mumbai Metro Project

Outbound Training Programme for female employees

The minimum and maximum gap between any two Board

4 Shri Ajoy Choudhury 12 12 100

5 Shri Vijay Kumar Singh N.A. N.A. N.A. N.A. 8 8 100

9 Dr. Gambheer Singh 12 12 100

10 Dr. Manoj Manohar Pande 12 12 100

11 Dr. Durgesh Nandini 12 12 100

Present in person Present through video conferencing N.A. Not Applicable

same is incorporated in the “Vigilance Hand Book” of the

x. Reconciliation of Share Capital Audit Report Particulars Number Number

For Hemant Singh & Associates

17. Markets served by the entity

PRINCIPLE 8 Businesses should promote inclusive growth and equitable development.

The Members Auditors’ Certificate on Corporate Governance

For Hemant Singh & Associates Sd/- Sd/-

11 ALIMCO Medium High High High Medium

12 SCGJ High Medium Medium Medium Medium

FORM NO. AOC -2

For and on behalf of the Board of Directors

Vivek Kumar Dewangan

Details of Debenture Trustees Appointed by the Company for

INE020B08DH2 204B Unsecured 31-Dec-2025 5.81% Yes Yes

* Perpertual Det Instruments

For and on behalf of the Board of Directors

Vivek Kumar Dewangan

2. Income Tax refund 99.79 23.26 Commercial Paper - - - - - -

B Instruments entirely equity in nature (₹ in Crores)

Accompanying Notes to Financial Statements 1 to 67

(₹ in Crores) Particulars Opening Recognised in Recognised Others Closing

(a) As at 31 st March 2023

(b) As at 31st March 2022

Projects in Progress Particulars As at 31.03.2023 As at 31.03.2022

(L) Details of Stage wise Exposure and Impairment Loss Allowance:

Investments 4.73 4.73 36.77 157.38 259.03 2,675.35 3,137.98

Subordinated Liabilities 2.11 - - 2,668.34 126.46 - - - - 3,976.40 6,773.30

Foreign Currency Borrowings

Debt Securities - - - 4,297.43 43.56 96.67 5,742.53 9,438.34 13,072.00 - 32,690.54

Investments - - - - 2.81 2.82 55.65 80.05 180.59 1,836.05 2,157.97

Subordinated Liabilities - - - 168.38 126.46 - 2.11 2,499.73 - 4,019.79 6,816.47

Foreign Currency Borrowings

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