IRFC Cover - ENGLISH - Indian Railway Finance Corporation Ltd.

Schedule "16" (Contd.)
Significant Accounting Policies and Notes on Accounts
In respect of some of its External Commercial Borrowings, the Company has executed cross currency swaps to
hedge the principal outstanding and converted its underlying liability from one foreign currency to another. The
outstanding position of such cross currency swaps as at 31st March'08 is as follows:
As on 31-03-2008 As on 31-03-2007
No. of Borrowing Notional USD No. of Borrowing Notional USD
Contracts outstanding Equivalent Contracts outstanding Equivalent
in Foreign
in Foreign
Currency Currency
1 JPY 2.65 USD 25 1 JPY 2.65 USD 25 Million
Billion Million Billion
1 JPY 14.71875 USD 125 1 JPY 14.71875 USD 125 Million
Billion Million Billion
In respect of the following external commercial borrowing, the Company has executed currency swap to hedge the
foreign exchange exposure in respect of both principal outstanding and interest payments:
As on 31-03-2008 As on 31-03-2007
No. of Borrowing Notional INR No. of Borrowing Notional INR
Contracts outstanding Equivalent Contracts outstanding Equivalent
in Foreign
in Foreign
Currency Currency
1 JPY 15 Billion 54911.79 Lacs Nil Nil Nil
The foreign currency borrowings outstanding as on 31-03-2008, which have not been hedged are as follows:
As on 31-03-2008 As on 31-03-2007
No. of Borrowing No. of Borrowing Remarks
Loans outstanding in Loans outstanding in
Foreign Currency Foreign Currency
1 USD 42 Million 1 USD 45 Million Back to Back recovery of exchange
rate variation from MOR.
2 USD 19.68 Million 2 USD 25.88 Million --
1 USD 125 Million 1 USD 125 Million Back to Back recovery of exchange
rate variation from MOR.
1 Euro 5.86 Million 1 Euro 7.81 Million --
Nil Nil 1 JPY 15 Billion --
1 JPY 442.702 Million 1 JPY 1328.17 Million Back to Back recovery of exchange
rate variation from MOF.
(b)
The Company has executed one (P.Y. two) Interest Rate Swap (IRS) / Interest Rate Cap (IRC) in respect
of a part of its foreign currency borrowings to hedge its floating rate liability linked to Libor. IRS / IRC have
been executed on a notional principal amount of USD 100 Mio. (P.Y. USD 175 Mio.).
As part of hedging strategy, the Company has executed four (P.Y. three) Interest Rate Swap/Currency
Swap (coupon only) on fixed interest rate rupee borrowings to reduce the cost by taking benefit of
interest rate movement. The INR value of the outstanding borrowings on which such Swaps have been
executed is Rs. 127000 Lacs (P.Y. Rs.115000 Lacs) as on 31-03-2008.
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