IRFC FINAL - Indian Railway Finance Corporation Ltd.

Amount to be recognised in the Balance SheetGratuity(Non-Funded)(Rs. in Lacs)Leave Encashment(Non-Funded)Present value of obligations as at the end of the year 22.52 20.88Fair Value of plan assets 0 0Funded status -22.52 -20.88Net Asset / (Liability) recognised in the Balance Sheet 22.52 20.88Expenses recognised in statement of Profit & Loss:Gratuity(Non-Funded)(Rs. in Lacs)Leave Encashment(Non-Funded)Current Service Cost 1.09 0.96Interest Cost 1.12 1.04Expected return on plan assets 0 0Net Actuarial (Gain) / Loss recognised in the year 6.37 6.37Expenses recognised in Statement of Profit & Loss 8.58 8.37Actuarial Assumptions:(Rs. in Lacs)As on 31.03.2009 As on 31.03.2008Discount rate 8% 8%Salary Escalation 5% 5%In terms of the transitional provision of AS 15 (Revised), excess liability (Net of Deferred Tax Assets) appearingin the books of accounts as on 01.04.2008 amounting to Rs.11.39 Lacs has been transferred to the openingbalance of General Reserve Account.19. In accordance with Accounting Standard 29, particulars of provisions are as under:Incentives/PRP2008-09 2007-08Gratuity & LeaveEncashmentIncentives/PRPGratuity & LeaveEncashmentOpening Balance 5.50 44.17 4.63 31.96Addition during the year 12.50 16.94 5.50 13.59Amount used / incurred 12.06 0.46 4.75 1.38Unused Amount reversed(6.56) 17.25 (0.12) --during the yearClosing Balance 12.50 43.40 5.50 44.17The above provisions are liabilities in accordance with terms of employment. Payment of Incentives/Performance Related Pay (PRP) shall be made as and when they became due. Provision for Gratuity is inaccordance with the Accounting Standard 15 (Revised) and that for leave encashment is as per Company'spolicy.20. The Company is in the business of leasing and financing. As such, there are no separate reportable businesssegments as per Accounting Standard (AS)-17 on 'Segment Reporting' issued by the Institute of CharteredAccountants of India.56