IRFC FINAL - Indian Railway Finance Corporation Ltd.

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(b) The Company has one (P.Y one) Interest Rate Cap (IRC) outstanding in respect of a foreign currencyborrowing to hedge its floating rate liability linked to Libor. IRC has been executed on a notional principalamount of USD 100 Mio. (P.Y. USD 100 Mio.).As part of hedging strategy, the Company has six (P.Y. six) Interest Rate Swaps / Currency Swaps (coupononly) outstanding on fixed interest rate rupee borrowings by taking benefit of interest rate movement. TheINR value of the outstanding borrowings on which such Swaps have been executed is Rs.162000 Lacs(P.Y. Rs.162000 Lacs).7. Office Building including parking area has been capitalised from the date of taking possession. However,the sale / transfer deed is still pending for execution in favour of the company. Stamp duty payable on theregistration of office building works out to about Rs.91 Lacs (P.Y. Rs.91 Lacs), which will be accounted for onregistration.8. Syndicated Japanese Yen Loan on behalf of Ministry of FinanceDuring the year 1998 - 99, the company raised JPY 8854.65 million through Syndicated Japanese Yen Loan onbehalf of Ministry of Finance (MOF) and repaid an outstanding loan of Exim Bank of Japan through refinancing.The said Syndicated loan was renegotiated during the year 2002 - 03. The interest as well as repayment of loanis serviced by the MOF. Full amount of JPY 8854.65 million (P.Y. JPY 8411.95 Million) of the refinanced loanhas been repaid till date leaving a balance of JPY nil (Rs. Nil) as on 31-03-2009 (P.Y. JPY 442.70 Million orRs.1776 Lacs). Interest payment on the loan amounting to Rs.22.44 Lacs (P.Y. Rs.105.78 Lacs) and recoverablefrom Ministry of Finance has not been considered as part of expenses / income and the same has not beenrouted through Profit & Loss Account.9. Salary, Allowances and other benefits to Directors of the Company(Rs. in Lacs)Particulars 2008-09 2007-08a. Salary / Allowances 29.30 10.05b. Incentive Nil 0.98c. Sitting fee paid to Non-Executive Directors 0.75 0.80In addition, Managing Director has been allowed use of staff car for personal use upto 1000 kms on payment ofRs.600/- per month, in accordance with the notification of the Govt. of India, Ministry of Finance, Departmentof Public Enterprises OM No.2(18)/PC/64 dated 20 th November, 1964 as amended.10. Contingent Liabilities(a) Claims against the Company not acknowledged as debts - Claims by bondholders in the Consumer Courts:Rs.50 Lacs (P.Y. Rs.48 Lacs) and Rs. 30 Lacs against the damages of property on vacation of old officepremises in the Civil Court.(b) The Income Tax assessments of the Company have been completed up to Assessment Year 2006 - 07. Thedisputed demand outstanding upto the said Assessment year is Rs. 16.54 crore against which Rs. 16.50crore has been deposited by the Company under protest and the appeals of the company are pending atvarious appellate levels. Based on decisions of the Appellate authorities in other similar matters and theinterpretation of other relevant provisions, the Company is confidant that the demands are likely to beeither deleted or substantially reduced and accordingly no provision has been considered necessary.(c) The company does not pay sales tax on purchase of leased assets. Sales tax on the purchase / leaseof rolling stock, if it becomes payable, is recoverable from Ministry of Railways in terms of the leaseagreements. Since, there is no sales tax demand and the amount is unascertainable, no provision is madein the accounts.(d) The Companies (Second Amendment) Act, 2002 provides for levy of cess, towards rehabilitation / revivalof sick industrial companies, which shall not be less than 0.005% but not more than 0.10% of the turnoveror the gross receipts as the Central Government may from time to time specify by notification in theOfficial Gazette. Since no notification has been issued, provision for cess has not been made.51
11. Expenditure in Foreign Currency (on payment basis)Particulars 2008 - 09(Rs. in Lacs)2007 - 08(Rs. in Lacs)a) Interest / Swap Cost on Foreign currency borrowings (Net of Amount 13898.17 13959.60recovered on account of IRS / IRC and from MoF)b) Processing Agent / Fiscal Agent / Admn. fee (Net of Amount 13.23 16.42recovered from MoF)c) Underwriting / Arranger fee 851.46 54.40d) International Credit Rating Agencies Fees 42.46 74.60e) Others 37.43 186.1412. (a) The company has not taken on lease any Rolling Stock assets during the year. All the assets taken onlease were in the years prior to 01-04-2001, worth Rs.157082 Lacs (ownership of the same vests with thelessors) stand sub-leased to Ministry of Railways. The company has paid future lease rental liability on allthe above leases as detailed below:Year ofLeaseNo. ofLeasesValue of assets takenon lease(Rs. In Lacs)Amount paid in settlementof future lease rentals(Rs. in Lacs)1999-00 6 102085 374923841355342000-01 2 54997 2942322302Total 8 157082 152899Year ofpayment2001-022002-032003-042001-022003-04The amount paid in settlement of future lease rentals as above, is being amortised in the accounts overthe remaining period of the leases. During the year, an amount of Rs.18603 Lacs (Previous Year Rs.16749Lacs) has been charged to Profit & Loss Account on account of such amortisation.Since the entire future lease rental liability has been paid, there is no liability payable for unexpired leaseperiod (Previous Year-Nil).(b) During the year 1999 - 2000, the company entered into 6 lease agreements, with the financial institutions/ banks as lessors, for a primary period of 10 years for an aggregate amount of Rs.102085 Lacs andsub-leased the same to MOR for a period of 15 years. The company has paid upfront the future financialliability on all these leases.Though, there is a mismatch in the tenor of the lease and sub-lease, there is no overall mismatch in thepresent value of entire lease rentals payable and receivable. During the year, the company received leaserentals of Rs.14088 Lacs (P.Y. Rs.14088 Lacs) and amortised (expensed) lease rentals of Rs.15092.40 Lacs(P.Y. Rs.13575.09 Lacs) on these transactions.13. The balances under some items of Loans & Advances and current liabilities are subject to confirmationand reconciliation and consequential adjustments, wherever applicable. However, in the opinion of theManagement, the realisable value of the current assets, loans and advances in the ordinary course of businesswill not be less than the value at which they are stated in the Balance Sheet.14. (a) The company discharges its obligation towards payment of interest and redemption of bonds, for whichwarrants are issued, by depositing the amount in the designated bank accounts. Reconciliation of suchaccounts is an ongoing process and has been completed upto 31-12-2008. The company does not foreseeany additional liability on this account. The total balance held in such specified bank accounts as on 31-03-2009 is Rs.1153.68 Lacs (Previous Year Rs.5209.33 Lacs).52
Page 20 and 21: Report on Corporate GovernanceIndia
Page 22 and 23: NOTE : Salary, in the following sca
Page 24 and 25: General Body MeetingsDetails of loc
Page 26 and 27: Chief Executive Officer and Chief F
Page 28 and 29: ANNUALACCOUNTS2008-09Indian Railway
Page 30 and 31: PROFIT AND LOSS ACCOUNTFOR THE YEAR
Page 32 and 33: SCHEDULE-3LOANS(Rs. in Lacs)DESCRIP
Page 34 and 35: SCHEDULE-3 Contd...LOANS(Rs. in Lac
Page 42 and 43: SCHEDULE-7CURRENT ASSETS, LOANS & A
Page 44 and 45: SCHEDULE-8CURRENT LIABILITIES AND P
Page 46 and 47: SCHEDULE-12ADMINISTRATIVE & OTHER E
Page 48 and 49: SCHEDULE-15PRIOR PERIOD ADJUSTMENTS
Page 50 and 51: monetary assets and liabilities at
Page 52 and 53: (iii) Interest expense in respect o
Page 56 and 57: (b) The Company is required to tran
Page 58 and 59: As a result of adopting AS - 15 (Re
Page 60 and 61: 21. As per Accounting Standard (AS)
Page 62 and 63: 34. BALANCE SHEET ABSTRACT AND COMP
Page 64 and 65: Auditor's ReportTo,THE MEMBERS,INDI
Page 66 and 67: (xii) The company has not granted a

IRFC FINAL - Indian Railway Finance Corporation Ltd.

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