IRFC FINAL - Indian Railway Finance Corporation Ltd.

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(b) The Company is required to transfer any amount remaining unclaimed and unpaid in such interestand redemption accounts after the completion of 7 years to Investor Education Protection Fund (IEPF)administered by the Ministry of Corporate Affairs, Govt. of India. Accordingly, during the year, theCompany deposited a sum of Rs.412.76 Lacs (P.Y. Rs.806.61 Lacs) in IEPF.15. During the year, the Company executed an Asset Securitisation Transaction by securitising an identified portionof future lease rentals of Rs.116050.65 Lacs originating on its assets leased to Ministry of Railways duringthe year 1998 - 99. As part of the securitisation transaction, future lease rental amount as mentioned abovewas transferred to a bankruptcy remote Special Purpose Vehicle (SPV) which, in turn, issued Pass ThroughCertificates (PTCs) to the prospective investors and realised a sum of Rs.96208.49 Lacs. The lease receivableshave since been derecognised in the books of accounts of the company. The book value of these future leasereceivables was Rs.88840.75 Lacs, resulting in a profit of Rs.7367.74 Lacs for the Company which as per RBIguidelines, is to be amortised over the life of the Pass Trough Certificates (PTCs) issued by the SPV. Out ofthe profit of Rs.7367.74 Lacs, a sum of Rs.936.72 Lacs pertaining to the current year has been recognised inthe Profit and Loss Account, leaving a balance of Rs.6431.02 Lacs as on 31.3.2009 to be recognised over theremaining life of the PTCs.16. Major components of net deferred tax liability are as under:As at31.03.2009(Rs. in Lacs)As at31.03.2008Liability on account of difference between WDV as per Income Tax Act and 463774 438028Companies ActLess: Deferred Tax Asset on account of Unabsorbed Depreciation 238105 234718Less: Deferred Tax Asset on account of MAT Credit 0 17830Less: Deferred Tax Asset on Misc. Expenditure to be written off 5 --Less: Deferred Tax Asset on account of Employee benefits 9 15Net Deferred Tax Liability 225655 185465The provision for Deferred Tax Liability for the current year is without considering Minimum Alternative Tax(MAT) credit as Deferred Tax Assets (DTA). Similarly, MAT credit of Rs. 17828 Lakhs considered as DTA duringearlier years has also been reversed and provided as Deferred Tax Liability for earlier years in Profit & LossAccount.17. Long Term Loans & Advances (Schedule 5) include Lease Receivables representing the present value of futureLease Rentals receivable on the finance lease transactions entered into by the company since inception asper the Accounting Standard (AS)-19 issued by the Institute of Chartered Accountants of India.The reconciliation of the Lease Receivable amount on the Gross value of Rolling Stock assets worth Rs. 4793863Lacs (P.Y. Rs.4198893 Lacs) owned by the company and leased to the Ministry of Railways is as under:ParticularsA. Gross Value of Assets acquired & Leased upto the end ofprevious Financial YearAs at31.03.2009(Rs. in Lacs)As at31.03.20084094788 3738412B. Less value of assets securitised/assigned during the year 173375 104105C = (A - B) 3921413 3634307D. Less: Capital Recovery provided upto last Year 1587259 145870353
ParticularsE. Less Capital Recovery provided upto last year on assets assignedduring the yearAs at31.03.2009As at31.03.200870814 21419F. Capital Recovery upto last year (D - E) 1516445 1437284G. Capital Recovery Outstanding on leased assets as at the end oflast year (C - F)2404968 2197023H. Add: Gross Value of Assets acquired and Leased during the year 699075 460481I=G+H 3104043 2657504J. Capital Recovery for the year 162919 155440K. Less: Capital Recovery for the year on assets securitised/assignedduring the year13720 5465L. =J-K 149199 149975Net investment in Lease Receivables 2954844 2507529The value of contractual maturity of such leases as per AS-19 is as under:-ParticularsAs at31.03.2009(Rs. in Lacs)As at31.03.2008Gross Investment in Lease 4666575 3922010Unearned Finance Income 1711731 1414481Present Value of Minimum Lease Payment (MLP) 2954844 2507529Gross Investment in Lease and Present value of Minimum Lease Payments (MLP) for each of the periods are asunder:(Rs. in Lacs)ParticularsAs at 31.03.2009 As at 31.03.2008GrossInvestmentIn LeasePresentValue ofMLPGrossInvestmentin LeasePresentValue ofMLPLess than one year 419891 174886 362746 154171One to five years 1662584 774285 1439193 768048Greater than five Years 2584100 2005673 2120071 1585310Total 4666575 2954844 3922010 2507529The unearned finance income as on 31-03-2009 is Rs.1711731 Lacs (Previous Year Rs.1414481 Lacs).The company has leased rolling stock assets to the Ministry of Railways (MOR). A separate lease agreement foreach year of lease has been executed and as per the terms of the lease agreements, lease rentals are receivedhalf yearly in advance. The leases are non cancellable and shall remain in force until all amounts due underthe lease agreements are received.18. Hitherto, the Actuarial valuation for Gratuity and Leave Encashment was being done by the company as per theprovisions of the payment of Gratuity Act, 1972. However, due to change in Accounting Policies, the methodof Actuarial Valuation has been changed to Projected Unit Credit (PUC) Method.54
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 54 and 55: (b) The Company has one (P.Y one) I
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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